TNAG-0145-FCO40-181-Exports-of-textiles-to-United-States-of-America-1969 — Page 67

177

CONFIDENTIAL

CYPHER/CAT A

WASHINGTON TO FOREIGN AND COMMONWEALTH OFFICE

TOP COPY

WASHINGTON TELNO 28 TO HONG KONG

7 JUNE 1969

CONFIDENTIAL

[NEUTRAL]

ADDRESSED TO HONG KONG TELEGRAM NUMBER 28 OF 7 JUNE REPEATED FOR INFORMATION TO FOREIGN AND COMMONWEALTH OFFICE.

YOUR TELEGRAM NUMBER 19 TO WASHINGTON: STANS AND TEXTILES. THE REPORT THAT STANS VISITED MILLS SHORTLY BEFORE LEAVING WASHINGTON FOR THE FAR EAST IS CORRECT. IT IS NORMAL AND INDEED ESSENTIAL FOR THE ADMINISTRATION TO KEEP IN CLOSE TOUCH WITH MILLS ON ALL MATTERS AFFECTING TRADE POLICY, ALTHOUGH THIS DOES NOT MEAN THAT HE NECESSARILY APPROVES EACH MOVE THEY MAKE. WE HAVE HEARD THAT DESPITE A NUMBER OF MEETINGS WITH STANS MILLS IS NOT CONVINCED OF THE WISDOM OF ADMINISTRATION TACTICS ON THE TEXTILE QUESTION. 2. STANS' MEETINGS WITH MILLS ARE PRIVATE AND NO DETAILS ARE RELEASED ABOUT SUBJECTS DISCUSSED BUT IT IS VERY LIKELY THAT STANS ASKED MILLS TO INTRODUCE A TEXTILE QUOTA BILL TO STRENGTHEN HIS HAND IN THE FAR EAST. MILLS, WHO HAD BEEN WORKING ON THE IDEAS IN THE BILL SINCE JANUARY OR EARLIER, EVIDENTLY SAW ADVANTAGE IN MEETING THIS REQUEST BUT HIS MOTIVES WERE UNDOUBTEDLY VERY COMPLEX SEE MY TEL NO 1435 AND PARAGRAPH 4 OF MY TEL NO 1412.

3. THE ECONOMIST IS WRONG IN INFERRING THAT BECAUSE THE BILL WAS DESIGNED PARTLY TO HELP STANS MILLS' INTERVENTION WAS OF ONLY LIMITED SIGNIFICANCE. AS CHAIRMAN OF THE WAYS AND MEANS COMMITTEE MILLS HAS A DOMINATING INFLUENCE IN DETERMINING WHAT TRADE LEGISLATION WILL BE ENACTED BY CONGRESS. HIS BILL WILL REMAIN ONE OF THE KEY ELEMENTS IN THE MANOEUVRES IN CONGRESS ON TEXTILE RESTRAINTS. IT IS POSSIBLE THAT HE PLANS TO BURY HIS OWN BILL OR TO USE IT TO BLOCK

ALTERNATIVE QUOTA PROPOSALS BUT HIS INTENTIONS AT THIS STAGE ARE

OBSCURE AND UNPREDICTABLE.

FCO PASS HONG KONG

MR. FREEMAN

RECEIVED IN REGISTRY No.51

LACT

REF.

176

-7 JUN 1969

[REPEATED AS REQUESTED]

HIR 6/304/1

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT.

TRADE POLICY DEPT.

COMMODITIES DEPT.

CONFIDENTIAL