His main points were
(1) The US was the only major nation with a free open
textile market.
The US could not absorb the
production of developed countries and LDCs and
some method of restraint in imports was necessary to
enable the US industry to adjust and to survive.
(2) Up to last year, although the inflow was substantial,
.it could be absorbed. The US authorities were
concerned with the growth trend.
(3) In these circumstances Mr. Stans was not talking about
anything which was likely to cause unemployment in
the exporting.countries.
There would be no
roll-back of imports. He envisaged building from
a base with a slower rate of growth than hitherto.
Overseas suppliers would have a share in the growth
of the US market but would be asked to restrain
their exports, if possible, on a voluntary basis.
(4) The textile industry in the US employs some 2 million
people and comprises about 35,000 plants many of them
Many of the employees came
(5)
in small communities.
from the black minority and there would be social
and political problems if any substantial increase
in unemployment occurred.
The LTA for cotton had, he thought, worked satisfactorily
for Hong Kong and permitted a growth in exports
from Hong Kong to the US.
Cotton had now been
"passed up" and there was a switch in consumption to
2
/other
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