TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 168

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4. IN RESPONSE TO A SWISS QUESTION AMERICANS DENIED THAT THERE WAS

ANY PROPOSAL FOR A QUOTE NIXON ROUND UNQUOTE OF TARIFF CUTS. THEY

SAID THEIR MAIN INTEREST APART FROM TEXTILES WAS IN NON-TARIFF BARRIERS. THIS ENABLED THE SWISS TO SPEAK VERY FIRMLY ABOUT AMERICAN. SELLING PRICE (ASP). WHEN THE AMERICANS SAID THEY WERE AWARE OF THE GREAT QUOTE SYMBOLIC UNQUOTE EFFECT THAT ABOLITION OF ASP WOULD

HAVE, JOLLES REPLIED THAT ASP WAS NOT REPEAT NOT OF SYMBOLIC -

IMPORTANCE ONLY, IT WAS AN ECONOMIC ISSUE OF MAJOR IMPORTANCE TO

SWISS INDUSTRY PARTICULARLY CHEMICALS. JOLLES COMMENTED THAT

AMERICANS SEEMED IMPRESSED BY THIS AND ADDED JOKINGLY THAT HE HOPED

THE ISSUE WOULD NOT BE PLAYED-DOWN IN LONDON. THE AMERICANS ADMITTED

THAT THE ABOLITION OF ASP HAD ALREADY BEEN PAID FOR IN THE KENNEDY

ROUND, AND SPECULATED WHETHER THE UNITED STATES GOVERNMENT WOULD BE

WILLING TO QUOTE DO SOMETHING UNQUOTE ON ASP AS PART OF A PACKAGE

DEAL WHICH BY IMPLICATION WOULD INCLUDE SOME MEASURE OF DISCRIMINATION

ON TEXTILES. BUT THERE WAS ALSO A HINT THAT IN THE NEW TRADE BILL

WHICH THE ADMINISTRATION WOULD NEED TO INTRODUCE SOON THE ABOLITION

OF ASP MIGHT BE BALANCED IN CONGRESSIONAL EYES BY AUTHORITY AND

EXTRA FUNDS FOR QUOTE ADJUSTMENT ASSISTANCE UNQUOTE TO DECLINING

INDUSTRIES. IN THIS CONNEXION THE SWISS HAD REMARKED THAT THEIR CAR

INDUSTRY HAD BEEN ALLOWED TO GO BUST, DESPITE ITS PLEAS FOR

ASSISTANCE, AND THEIR PAPER INDUSTRY HAD HAD TO SUBJECT ITSELF TO

RUTHLESS CONCENTRATION, AND THAT U S TEXTILE INDUSTRY MIGHT WELL

PONDER THESE PRECEDENTS. MOST OF US DELEGATION HAD INDICATED

AGREEMENT AT THIS POINT, THUS IN JOLLES' VIEW UNDERLINING THAT

TEXTILE ISSUE WAS POLITICAL RATHER THAN ECONOMIC.

5. THE AMERICANS MADE IT CLEAR THAT THEY DID NOT AIM TO ROLL BACK

THE PRESENT LEVEL OF TEXTILE IMPORTS. THEIR FEAR WAS THAT THE

MASSIVE INCREASE IN THE RECENT PAST WOULD CONTINUE IF NOT CHECKED.

THERE WAS NO SUGGESTION THAT THEY HOPED FOR A RELAXATION OF THE

ARTICLE XIX CRITERIA.

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