TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 177

CYPHER/CAT A

ROUTINE WASHINGTON

TELEGRAM NO 297

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

31 JANUARY, 1969

CONFIDENTIAL,

NEUTRAL.

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FOR ATTENTION FIRST THING MONDAY.

MY TELEGRAM NO 249: TEXTILE IMPORTS.

THERE IS STILL LITTLE TO ADD TO THE PROVISIONAL ASSESSMENT

IN MY TELEGRAM UNDER REFERENCE, BUT IT NOW SEEMS FARLY CLEAR THAT

THERE IS NO PRECONCERTED POLICY BETWEEN MR MILLS AND THE ADMINISTRA-

TION, IN THE HOPE OF PROBING THE ADMINISTRATION'S THINKING

COUNSELLOR (COMMERCIAL) AND COUNSELLOR CHONG KONG COMMERCIAL

AFFAIRS) HAVE ARRANGED TO CALL ON 4 FEBRUARY ON ROBERT ELLSWORTH

IN THE WHITE HOUSE, WHO APPEARS TO HAVE THE JOB OF HANDLING THE

PRESSURES FROM THE DOMESTIC TEXTILE INDUSTRY.

2. THEY WILL OF COURSE MAKE IT CLEAR THAT THEIR PURPOSE IS

SIMPLY TO HAVE A GENERAL TALK ON A TOPIC CURRENTLY IN THE PUBLIC

EYE, BUT, SUBJECT TO YOUR VIEWS, WOULD MAKE THE FOLLOWING POINTS:

(A) ALTHOUGH THE DOMESTIC INDUSTRY IS EXERTING STRONG POLITICAL

PRESSURE IT IS FAR FROM CLEAR THAT IMPORTS ARE REALLY HURTING.

THE TARIFF COMMISSION'S REPORT A YEAR AGO DID NOT DEMONSTRATE

THIS, AND IN 1968 THE INDUSTRY'S PROFITS HAVE RISEN SUBSTANTIALLY: (B) ANY EXTENSION OF RESTRAINTS ON TEXTILE IMPORTS WOULD DAMAGE

AN IMPORTANT EXPORT TRADE FOR MANY COUNTRIES. THE SUGGESTION THAT

RESTRAINTS SHOULD BE VOLUNTARY MAKES NO DIFFERENCE, IT IS NOT CLEAR

WHAT COMPENSATION EXPORTING COUNTRIES COULD EXPECT TO RECEIVE:

(C) THE PROGRESSIVE EXTENSION OF RESTRAINTS WOULD UNDOUBTEDLY

ENCOURAGE PRESSURE FOR PROTECTION IN OTHER COUNTRIES FROM INDUSTRIES

WHICH FOUND IMPORTS, NOT NECESSARILY OF TEXTILES, INCONVENIENT:

(D) FOR ALL THESE REASONS THE QUESTION DOES NOT CONCERN TEXTILES

ALONE BUT RAISES BROAD ISSUES OF FOREIGN TRADE RELATIONS.

LAST

REF..

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CHAU TINDIA

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