(e) that we feel the next move should be left to the
Americans,
Argument
We understand from Washington that the Americans appear
to be casting round for their next move. We have not yet
heard that Mr. Stans has presented his promised plan of
action to the President. In recent conversations with
representatives of the EEC countries, the Americans have
shown some interest in the possibility of "unbinding" bound
duty rates on textile products by recourse to Article XXVIII
of the GATT. They are also still looking at Article XIX
but (a) dislike its non-discriminatory nature and (b) doubt
the usefulness to them of restraint on particular products
because they say the exporting countries would switch
Ad
to other products (they seem to forget that U.S. manufacturers
could also switch!).
Nevertheless, in view of the dangers that any general
or multi-lateral restraint scheme would (a) spread to other
products and (b) result in other countries resorting to
protectionism, we must try to maintain the united front and
either to discourage the Americans altogether or at least
to edge them towards a strict product by product, proven
injury approach.
Background
When Mr. Stans came to London at the end of April, he
did not conceal that the textile problem was largely political
-affecting, e.g., Negro workers in the South. He emphasised
that a concession by other countries on textiles was
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