TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 38

CONFIDENTIAL

U.S. INITIATIVE ON NON-COTTON TEXTILES

Note of a Meeting with Members

of the Japanese Embassy, held in

Mr. Whitehead's room on 1 April 1969.

Present:

67

F.C.O.

Mr. G.S. Whitehead

Mr. H.D.G. Collings

us

Japanese Embassy

Mr. Hori, Economic Minister

Mr. Endo, Second Secretary

Mr. Hori and Mr. Endo called at their own request to make known to on instructions the views of their government on the expected suggestion from the U.S. Secretary of Commerce that there should be a conference, under GATT auspices, to discuss a possible extension to non-cotton textiles of restrictions similar to those under the present LTA for cotton.

2.

The visitors began by handing over a piece of paper (copy attached), which they described as "talking notes", which makes clear that the Japanese Government are strongly opposed to the idea of such a conference. Mr. Hori indicated that they were concerned about how to deal with the new American approach which, as he put it, was on the lines of "Just let's get together and talk about it".

3. Mr. hitehead said that the views recorded in the Japanese paper were broadly similar to our own thinking. If Mr. Stans suggested a conference to us, we should ask for more information about the United States' economic reasons (we knew that they had domestic political reasons) for such a meeting. Our inclination at official level would be to say, eventually, that we saw no useful purpose in a meeting of this sort. Mr. Whitehead added that the matter had not yet gone to Ministers, and the view which he had expressed could not therefore be taken as the final word.

:

4. Mr. Hori drew our attention to a 'ashington press statement dated 26 March, attributed to a spokesman of the Department of Commerce, which included the remark that "the real threat to U.S. textiles came not from Europe but from soaring imports of low cost goods from Asia". The context of this observation seemed to imply that the Americans visualised arrangements which, although perhaps formally of universal application, in fact would not imply restrictions for European textile producers.

5. Mr. Whitehead observed that discriminatory measures would of course be vulnerable to challenge in the GATT. If, on the other hand, dumping or subsidisation of cotton textiles, was alleged to be taking place the recognised remedy was the application of countervailing duties.

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CONFIDENTIAL