TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 102

Conclusion

(a) Evidence is growing that the full and possible ¿consequences of further textile restraints, whether

·legislated or negotiated, are beginning to make the U.S.. Administration pause and try to reconcile such action with wider considerations relating to U.S. trade policy. Congress is unquestionably protectionist and would, with little encouragement, vote restrictive legislation. But the longer the Administration examines the consequences the less likely it must be that encouragement will come from that quarter.

2. (b) So far the major European nations have spoken

unanimously against the extension of restraints, and if this means nothing else it almost certainly means that nothing is going to happen quickly. It may even mean

the Americans will seek to find the solution to their

domestic political problem in other ways.

i

Congressman

Mills and ex-Ambassador Roth (President Johnson's trade

policy adviser) have both hinted at tariff protection

for those limited sectors of the U.S. textile industry

which can be shown to be suffering; and there cannot

be many.

This could be achieved by easier so-called

'escape-clause' action previously used to protect the

flatware industry among others,

(c)

The major review of the C.T.A. in September/

October will be a critical time, even if nothing else

occurs meanwhile. But it seems certain everyone will.

leave it to the U.S. to make the running there and

elsewhere in' the coming months.