CONFUENTIAL
therefore a danger that he may conclude that unilateral action
by the US is the only solution when her interests are at stake.
For this reason it is important that we should not reject
Mr. Stans' proposals too flatly and that we should show understand
-ing for his domestic difficulties. To help ier. Stans
presentationally it would be useful if we could be as forthcoming
as possible in any cases where the Americans may seek our help in
achieving freer trade («.5. in the QATT discussions on non-tariff
barriers).
Agenda
3. There is no set agenda for the discussions. The Board of
Trade have therefore prepared briefs (in consultation with
departments concerned) en a contingency basis for a number of
items which might be raised either by Mr. Stans or by the British
side. A complete set has already been sent to you direct.
These are very lengthy, but the steering brief sommarises the
issues involved. The following further points may be useful i-
Textiles (Brief No. 4)
4. This is the central issue for Mr. Stans. It is recommended
that Mr. Mulley should support the line in the Talking roints.
Mr. Mulley should know that the objections to proposals te
restrict imports of non-cotton textiles have been emphasised in
all the capitals Mr. Stans has so far visited and have also been
pointed out to him forcibly by the Director-General of Gatt. 5. Mr. Stans may raios Hong Kong's exports of non-gottan
textiles to the U.S.A. The President of the Board of Trade will
presumably take the lead in replying}
paragraph 11 of the
/"Talking Points"
CONFIDENTIAL
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