TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 99

06

INTERNATIONAL TEXTILE SITUATION

(39

42

Background

(b)

(0)

(a)

(e)

In his election campaign, President Nixon made

a promise "to take an early opportunity to seek

to extend the concept of the C.T.A. to other fibres", Congressman Mills spoke in January of a possible solution to the "textile problem" by means of voluntary limitations by exporters of all textiles' to a value ceiling; but subsequently it appears

this was his own, half-formed idea and had no

Administration backing.

At a press conference on 6th February, President

Nixon said he believed in freer trade; took a

dim view of the tendency to move toward quotas;

but felt there was a "special problem" in regard

to textiles to which he hoped a solution could

be found on a voluntary basis rather than having

to go to legislation..

There was public speculation (but no official

statement) that a .S. team, consisting of

Robert Ellsworth (the President's special adviser

on textiles), Nehmer of Commerce and Blackman of

Labour, would visit Asia during the President's visit

to Europe. This visit did not take place, nor is

there any sign that it will in the near future.

The official British view is that the problem is

political rather than real. Objective information

indicates that after the six years of unparalelled

growth up to 1967 referred to by the U.S. Tariff

Commission, 1968 was an even more profitable year

for the U.S. textile industry. U.K. policy is to

/play the situation slowly;