TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 99

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The American view is that the import problems of the US textile

industry could be solved without causing major damage if certain

countries introduced export restrictions. Another factor in

support of this solution is considered to be the fact that export

restrictions are, as a rule, less restrictive than import quotas.

The Americans claim that a solution will have to be found within

GATT in order to reduce discrimination. They think that the

cotton textile agreement of 1962 (Long Term Arrangement Regarding

International Trade in Cotton Textiles LTA;

31.12.1969) is an example worthy of imitation.

expiration date =

We are

They expect that we shall not object to their plans. German

exporters of textiles to the USA (mainly chemical fibres and

yarns) would not be affected by the export restrictions.

at most asked (as well as other European countries) to make an

effective contribution to easing the import pressure in the USA

by absorbing more of the goods they refuse. Such a contribution

would be all the more effective since it would probably be the

precondition for cooperation between the main supplying countries

to the US in the negotiations within GATT.

III.

Suggested German Approach

First of all, we should emphasise our willingness actively to

cooperate in finding a solution to international problems of trade

policy. However, we would have to do this as a member of the

European Communities.

It should also be pointed out that the

Federal Republic will, on principle, prefer such measures to solve

the problems not by restrictive methods but by an expansion of

world trade and the further development of the international

division of labour (reference to the European Communities' offer

of an asymmetrically accelerated tariff reduction on the Federal