TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 174

CONFIDENTIAL

-2-

4. IN REPLY, DOHNANYI POINTED OUT THAT SIMILAR PROBLEMS EXISTED IN GERMANY, BUT THE FEDERAL GOVERNMENT WERE TRYING TO SOLVE THEM IN OTHER WAYS. THEY COULD NOT BE SOLVED BY RESTRICTIVE TRADE POLICY, AND HE DID NOT THINK THE WAY PROPOSED BY MR. STANS WAS THE RIGHT WAY. HE OBJECTED TO THE SECTORAL APPROACH ADVOCATED BY MR. STANS ON

THREE MAIN GROUNDS :-

(1) THE DANGEROUS PRECEDENT WHICH WOULD BE CREATED (STEEL, AND

NOW TEXTILES):

(11) THE NEED TO AVOID CONFRONTATION BETWEEN THE U.S.A. AND

EUROPE ON THE ONE HAND, AND ASIA ON THE OTHER. HE HERE REFERRED TO THE ONE WORLD+ CONCEPT:

(111) THE IMPRACTIBILITY OF OPERATING VOLUNTARY RESTRAINTS IN THE

TEXTILE SECTOR, AS COMPARED WITH STEEL..

RECOGNISING HOWEVER, THE EXISTENCE OF A PROBLEM, HE PUT FORWARD A SUGGESTION, FOR THE AMERICANS TO THINK OVER, THAT A FACT-FINDING GROUP MIGHT BE ESTABLISHED IN G ATT TO EXAMINE THE DIFFICULTIES

IN THE WHOLE TEXTILE FIELD.

5. THIS SUGGESTION WAS IMMEDIATELY REJECTED BY THE AMERICANS,

WHO SAID THAT IT WOULD LEAD TO NO USEFUL

NO USEFUL RESULT AND WOULD TAKE TOO LONG. IT DOESN'T SERVE OUR PURPOSE. IT WAS,, HOWEVER, AGREED THAT THE EXCHANGE OF VIEWS HAD BEEN USEFUL AND THAT THE DISCUSSIONS

WITH MR. STANS SHOULD BE FOLLOWED UP BILATERALLY.

FCC PSE PASS: PRIORITY

ROUTINE

SAVING

SIR ROGER JACKLING

UKMIS GENEVA ROME.

?

UKDEL EEC, THE HAGUE, PARIS, WASHINGTON. LUXEMBOURG, BRUSSELS, TOKYO, HONG KONG, BERNE

REPEATED AS REQUESTED/

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES DEPT.

TRALE POLICY DEPT.

CONFIDENTIAL

XXXXX