TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 90

CAT A CYPHER

PRIORITY WASHINGTON

TELEGRAM NUMBER 882

CONFIDENTIALL

2644

''NEUTRAL''

CONFIDENTIAL

gent C2613 Phoscope unde comf",

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camp

shto to i tallen, 4. V. fest office. Then R&R

Mair 26/3

TO FOREIGN/COMMONWEALTH OFFICE

24 MARCH 1969

45

ADDSD FCO TELNO 882 OF 24 MARCH RPTD FOR INFMN TOKYO HONG KONG

SAVING BRUSSELS UKDEL EEC BRUSSELS, THE HAGUE BONN UKMIS GENEVA BERNE ROME AND PARIS.

MYTELNO 8681 US SECRETARY OF COMMERCE'S EUROPEAN TOUR AND

TEXTILE RESTRAINTS.

IT IS GETTING INCREASINGLY CLEAR FROM HIS ADDRESS TO THE AMERICAN TEXTILE MANUFACTURER'S INSTITUTE ON 22 MARCH AND FROM SUB SEQUENT PRESS REPORTS THAT MR STANS WILL PROPOSE THE CONVENING OF A FORMAL GATT CONFERENCE, PROBABLY IN MAY, TO NEGOTIATE THE EXTENTION OF THE LONG TERM ARRANGEMENT ON COTTON TEXTILES TO WOOL

AND MAN-MADE FIBRES. THIS PROPOSAL MAY CONFRONT EXPORTING COUNTRIES

WITH AN AWKWARD DECISION BETWEEN:

(A) REFUSING TO ATTEND A CONFERENCE, THIS WOULD FORCE THE ADMINISTRATION TO MAKE AN EARLY CHOICE EITHER TO ABANDON THEIR

EFFORTS TO FULFIL THE PRESIDENT'S COMMITMENT TO THE TEXTILE INDUSTRY

OR TO ACQUIESCE IN LEGISLATED QUOTAS: OR

(B) AGREEING IN PRINCIPLE TO ATTEND A CONFERENCE.

THIS ON THE ONE

HAND MIGHT ENABLE AMERICAN NEGOTIATORS TO BREAK UP THE FRONT

OF EXPORTING COUNTRIES BY PERSUADING SOME OF THE WAVERERS THAT THE OTHERS ARE NOT UNITED IN OPPOSING TEXTILE RESTRAINTS. ON THE OTHER HAND IT MIGHT ENNABLE US TO TALK THE WHOLE ISSUE INTO THE SAND. 2. WE DISCUSSED THIS QUESTION TODAY WITH DANIELS WHO HAS

JUST RETURNED FROM HIS VISIT TO EUROPE. HE CONSIDERS THAT THE DANGERS INHERENT IN THE SECOND ALTERNATIVE GREATLY OUTWEIGH THOSE OF THE

FIRST. HIS VIEW IS THAT IF MR STANS ENCOUNTERS A FIRM

CONFIDENTIAL

/REFUSAL

LAST

I

f

X 48 0191

RECEIVE ARCHIVES A

26 MAK 1920

HKK 6/304/1

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