TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 61

CONFIDENTIAL

CYPHER/CAT A

PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 206

CONFIDENTIAL

NEUTRAL

1 APRIL 1969

LAST

R

55

56

ADDSD TO F C O TEL NO 206, OF 1 APRIL REPTD FOR INFMN TO

WASHINGTON UKDEL E E C BRUSSELS BONN TOKYO HONG KONG SAVING TO

UKDEL OECD PARIS THE HAGUE BRUSSELS BERNE ROME PARIS BONN.

55)

MY IMMEDIATELY PRECEDING TELEGRAM: EUROPEAN TOUR BY THE U.

S. SECRETARY OF COMMERCE AND TEXTILE RESTRAINT.

I SHALL DISCUSS ALL THIS WITH SIR E. MELVILLE ON HIS RETURN:

MEANWHILE I WOULD VENTURE THE FOLLOWING PRELIMINARY ASSESSMENT.

2. LONG IS REACTING WITH TYPICAL CAUTION TO THE AMERICAN MOVE, WHICH IS ALL TO THE GOOD. HIS APPROACH IS ALSO CHARACTERISED

BY A PROTECTIVE ATTITUDE TOWARDS THE GENERAL AGREEMENT AS SUCH,

AS DISTINCT FROM THE TRADE INTERESTS OF CONTRACTING PARTIES.

ALTHOUGH IT MAY WELL BE THE MOST SALUTARY APPROACH TO ADOPT WITH THE NEW U.S. ADMINISTRATION IN THE FIRST INSTANCE, WE SHOULD HAVE TO LOOK VERY CAREFULLY AT WHERE IT COULD LEAD US. LONG'S

REFERENCE TO QUOTE PAYMENT UNQUOTE TO THE AMERICANS IS SIG-

NIFICANT IN THIS CONTEXT. WHILE A SYSTEM OF VOLUNTARY RESTRAINT COVERING WOOL AND MAN-MADE FIBRES REACHED AD HOC AND OUTSIDE THE GATT MIGHT AVOID THE APPEARANCE OF A QUOTE PAYMENT UNQUOTE BY GATT TO THE AMERICANS, IT IS NOT CLEAR THAT OTHER CON- TRACTING PARTIES WOULD SEE THIS AS BEING IN THEIR INTEREST EITHER

IN THIS PARTICULAR CASE OR AS A GOOD AUGURY FOR TACKLING OTHER G

GATT BUSINESS.

3. AS REGARDS G A T T PROCEDURES, MOREOVER, IT IS OPEN TO DOUBT WHETHER LONG OR THE CONTRACTING PARTIES COULD GO VERY FAR IN RESISTING A FORMAL AMERICAN REQUEST FOR TALKS IF ONE IS MADE. THE U.S. MIGHT CLAIM THE RIGHTS AS A CONTRACTING PARTY TO RAISE

MATTERS OF INTEREST TO IT, PARTICULARLY SINCE THE UNDER- STANDING REACHED AT THE 24TH SESSION OF THE CONTRACTING PARTIES

THAT ARTICLE XXII COULD AND SHOULD BE USED IN A MORE GENERAL SENSE

THAN PREVIOUSLY AND WITHOUT THE IMPLICATION OF A COMPLAINT

BEING MADE BY ONE CONTRACTING PARTY AGAINST OTHERS. THIS, YOU WILL RECALL, IS THE BASIS FOR DISCUSSION E.G. OF POULTRY AND

DAIRY PRODUCTS.

CONFIDENTIAL

14.