TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 141

CONFIDENTIAL

2

BETWEEN THE USA AND THE VARIOUS COUNTRIES OF EUROPE THAT THE

KENNEDY ROUND AGREEMENT ON CHEMICALS SHOULD BE FULLY IMPLEMENTED.

ENDS.

2. THE BACKGROUND NOTE MAKES THE POINT THAT PROTECTION FOR AN

INDUSTRY WHICH INCLUDES CHEMICAL GIANTS LIKE DU PONT (WHICH

RECORDED AN AVERAGE INCREASE OF AT LEAST 25% IN PROFITS LAST YEAR) WOULD BELIE AND UNDERMINE THE OBJECTIVES OF FREER WORLD

TRADE WHICH THE PRESIDENT HAS ESPOUSED. IT ALSO CONTAINS A

PARAGRAPH TO THE EFFECT THAT THERE IS A DANGER PERHAPS THAT THE AMERICANS MAY ARGUE THAT IF WE CAN MEET THEM OVER RESTRAINT ON EXPORTS OF TEXTILES, THEY IN TURN WILL UNDERTAKE TO ABOLISH A.S.P. THE TWO ISSUES ARE QUITE DISTINCT. AMERICA HAS PLEDGED HERSELF INTERNATIONALLY (IN THE KENNEDY ROUND) TO ABOLISH A.S.P. IN RETURN FOR VALUABLE CONCESSIONS FROM OTHER NATIONS, SO THERE CAN BE NO QUESTION OF THIS BEING PAID FOR TWICE OVER.

3. YOU MAY CONSIDER IT DESIRABLE TO INFORM THE GOVERNMENT TO WHICH YOU ARE ACCREDITED OF THE LINE THAT WE ARE TAKING, AND TO SUGGEST THAT THEY DO THE SAME. YOU MAY ALSO CARE AT YOUR DISRETION TO SAY THAT WE WOULD HOPE THAT THE VIEWS EXPRESSED

HERE AND IN OTHER WEST EUROPEAN CAPITALS WOULD RESULT IN THE US ADMINISTRATION MAKING HASTE VERY SLOWLY ON THIS ISSUE AND IN PROVIDING TIME FOR SECOND THOUGHTS AND FOR THE VIEWS OF THE

DOMESTIC OPPOSITION TO PROTECTIONISM IN THE US TO MAKE

THEMSELVES FELT./

STEWART

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES DEPT.

TRADE POLICY DEPT.

N. AM. & C.D.

F.E.D.

FFFFF

!

CONFIDENTIAL