TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 147

CONFIDENTIAL

VISIT of U.S. Secretary of Commerce to Europe

987

Certain common denominators emerge from the reports received from Embassies about European reac-

tions to Mr. Stans visit. Stans came dubiously well briefed on the textile problem, and with a team

of officials to give the economic side of his political case, but even so most European officials

have demanded more information and statistics from the Americans. There is the trace of a feeling that the Americans, committed by Nixon's election pledge, are not facing up squarely to the facts of their textile Industry's situation during talks with the EEC the Americans claimed that they had

real economic difficulties now, and referred to the closure of one firm in Texas; the EEC replied

that some 50 Community Textile firms had recently closed. The Swiss pointed out that, despite pleas for help, their car industry had been allowed to go bust and their paper industry had suffered a period of ruthless concentration, they added that US Textile Industry might well ponder these prece- dents. Other countries suggested the possibility of alternative remedies, notably the Germans, who

stated that restrictive Trade policies were not the answer.

Throughout their Grand Tour the Americans met with opposition to their proposal for a GATT con-

ference to discuss this issue, and their attempts to link a Textile Agreement on the lines required by them with concessions on Non-Tariff Barriers, etc., met with polite, but definitely cold, responses everywhere. The Nixon Administration could probably, should they wish, find a means of watering down the electoral pledge, in spite of the Textile lobby, were it not for Representative Wilbur Mills threatening Congressional action in the absence of administrative action; perhaps this explains why Stans and party have consistently spught pledges of support and rejected proposals for GATT study groups. Apart from Italy, the Americans have emphasised that they envisage nothing harmful to European interests generally, and that their real target is Asian exports of cheap textiles.

The notes below refer only to the outcome of talks on the textile question. Other matters will be found in the appropriate telegrams on HKK 6/304/1, Parts A and B.

CONFIDENTIAL

I. R. MURRAY 23 April, 1969