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

CONFIDENTIAL

-ان

CYPHER/CAT A

PRIORITY WASHINGTON

TELEGRAM NO. 249

CONFIDENTIAL

NEUTRAL

TO FOREIGN AND COMMONWEALTH OFFICE

27 JANUARY 1969

ADDRESSED TO FCO TELEGRAM NUMBER 249 OF 27/1 REPEATED FOR INFORMATION TO HONGKONG UKDEL BRUSSELS AND UKMIS GENEVÁ.

TEXTILE IMPORTS.

CONGRESSMAN MILLS. CHAIRMAN OF THE HOUSE WAYS AND MEANS

COMMITTEE, SPEAKING TODAY TO THE NATIONAL COTTON COUNCIL OF AMERICA IN HOT SPRINGS, ARKANSAS CHIS HOME STATE), FIRMLY REJECTED · STATUTORY QUOTAS AS THE PROPER MEANS OF DEALING WITH INJURIOUS TEXTILE IMPORTS, AS WELL AS THE CONCEPT OF QUANTITATIVE LIMITATIONS ON IMPORTS GENERALLY. HE EXPRESSED HIS STRONG CONVICTION, HOWEVER, THAT ACTION NEEDS TO BE TAKEN ON TEXTILE IMPORTS AND SUGGESTED, AS A NEW INITIATIVE, THE NEGOTIATION OF VOLUNTARY ARRANGEMENTS FOR A DOLLAR CEILING ON TOTAL TEXTILE IMPORTS TO BE PERMITTED

FROM ANY COUNTRY. UNDER THIS APPROACH EACH EXPORTING COUNTRY WOULD

AGREE TO RESTRAIN EXPORTS ACCORDING TO SOME PREVIOUSLY AGREED VALUE BASE. THERE WOULD BE PROVISION FOR INCREASE PROPORTIONATE

TO THE INCREASE IN U.S. PRODUCTION PROVIDED THAT THE EXPORTING

COUNTRY DID NOT ATTEMPT TO CHANGE THE PRODUCT PATTERN OF EXPORTS IN A DISRUPTIVE MANNER. MR. MILLS SAID HE HAD NOT BEEN ABLE

TO DEVELOP HIS APPROACH IN DETAIL BUT HE HOPED THAT ALL CONCERNED,

INCLUDING FOREIGN GOVERNMENTS AND INDUSTRIES, WOULD GIVE IT EARLY CONSIDERATION. HE EMPHASISED THAT THE UNITED STATES WOULD

IF NECESSARY CONSIDER THE IMPOSITION OF WHATEVER LIMITATIONS WERE

REQUIRED TO PRESERVE THE DOMESTIC TEXTILE INDUSTRY,

MANDATORY QUOTAS.

INCLUDING

2. MR. MILLS ALSO SUGGESTED EASIER QUOTE ESCAPE CLAUSE UNQUOTE

ACTION INCLUDING THE ELIGIBILITY FOR RELIEF OF INDIVIDUAL PRODUC-

ERS OF A PARTICULAR PRODUCT LINE.

LAST

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18:

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