TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 155

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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

NV (69) 11

18th February 1969

COPY NO.

69

PRESIDENT NIXON'S VISIT TO LONDON

FEBRUARY 1969

US/UK TRADE POLICIES

Brief by the Board of Trade

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TALKING POINTS

I was delighted that you have already stated publicly and forcibly that the interests of the U.S. and of the world would be better served by moving towards freer trade than towards protectionism, and that you took "a dim view of moves towards quotas".

We agree with you that the continuation by the U.S. and the U.K. of outward-looking policies which will favour the development of multilateral trade is essential for the prosperity of the world.

We are both faced with serious payments problems which must be solved. In solving them we should both avoid unnecessary damage to world trade, especially the trade of the developing countries.

There are strong and perhaps increasingly powerful forces of protectionism both in the U.S. and in the U.K. It would be a tragedy if they succeeded in reversing the policies that ever since the War have contributed so much to general prosperity. The best way to guard against such a reversal is to press on with the freeing of trade.

Vid

The major advance in this direction represented by the Kennedy Round agreement is still in course of being implemented, and while that is the position approximately for the next two or three years we can hardly expect any dramatic further steps. But we would pay tribute to the initiatives, which the Americans have largely inspired in the G.A.T.T. and else- where, to set on foot preparatory studies for further advances in such fields as non-tariff barriers; we shall continue to play an active part in these, and look forward to collaborating closely with the Americans.

There are two other grave matters in which the U.S. will play a critical role. First, we are concerned at reports about possible restraints on imports of textiles into the U.S.A. Protectionist action in so important a field by a nation so wealthy and powerful as the U.S. could start off a chain reaction throughout the world, not only on textiles but on other industries too. The effects on the major objective of promoting freer trade, and on many of the developing countries, could be grave. We hope, therefore, that very serious consideration will be given to the issues involved before any retrograde step is taken. Incidentally, some of the proposals for action by voluntary control by exporting countries that have been mentioned do not seem to us to be practicable.

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