TNAG-0145-FCO40-181-Exports-of-textiles-to-United-States-of-America-1969 — Page 53

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Dear Denis,

CONFIDENTIAL

PAN DR 110

Si. A. Smoking M Gallagh

Mt. Whitehead

12

BRITISH EMBASSY,

WASHINGTON, D. C.

6 June, 1969.

183

Mr. Maurice Stans, the Secretary of Commerce, was guest of honour at the monthly EFTA Ambassadors lunch, given by my Portuguese colleague on 4 June. As is customary on these occasions he gave us an unscripted and off-the-record talk on current issues.

His remarks followed closely what he said in London at the end of April. He referred to the deterioration in the US trade balance, the need to contain inflation, the "open table" idea for dealing with non-tariff barriers and the special problem of textiles. He was relaxed and showed none of the truculence over textiles which he has displayed in public since his return from Asia. He gave the impression, however, of still being convinced that the US textile industry as a whole is in serious difficulties and although he said nothing about his immediate intentions I would say that, if he gets his own way, he still means to go on trying for overall textile import restraints. He presented his case with skill. course, he has by now been very well rehearsed. specific points are worth recording:

But, of The following

(a) The present level of textile imports represented 100,000 American jobs and if the rate of increase continued it could put one-quarter of total employment in the textile industry at risk over the next six years. (This presupposes, of course, that the market will remain static and ignores the fact that rising imports have not so far prevented employment in the industry from rising as well.)

(b) All agencies of the US Government are agreed that Article XIX of GATT does not provide sufficient relief for the industry's difficulties. (In fact we know that Mr. Carl Gilbert has put forward a memorandum recommending an Article XIX solution for sectors of the US industry where serious injury can be established.)

(c) One course open to the United States would be to take advantage of the forthcoming GATT "open session" to increase tariffs on man-made and wool textiles against compensation. (But unless the Congress passes new trade legislation the Administration at present have no power to give compensation by way of other tariff concessions.)

(a) Stans again emphasised that he did not propose

CONFIDENTIAL

Sir Denis Greenhill, K.C.M.G.; K.C.V.O., Foreign and Commonwealth Office.