TNAG-0145-FCO40-181-Exports-of-textiles-to-United-States-of-America-1969 — Page 96

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CONFIDENTIAL

Mr Collings 2πFR

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BRITISH EMBASSY,

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1. Mr Sellers and to Hay Kung.

Selles

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Textile Importa

WASHINGTON D.C.

23 May, 1969.

R&R

Commodities Deft. T

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Mr. Stans held a press conference on 20 May to report on the results of his visits to Europe and Asia. I enclose a copy of the transcript. Stans indicated that the Admin- istration would be working out a plan of action to presont to the President in the next two weeks; and the next moves will not be definitely settled until a Presidential decision has been taken. We would hope that some moderating influen- ces can be brought to bear during the two week discussion period. For the moment, however, the Administration seen intent on digging themselves further into the pit.

2.

While Stans was in Asia the President reaffirmed his commitment to find an international solution to the textile problem in a message to the National Association of Wool Manufacturers (copy enclosed). This will not make it any easier for him if he later wishes to draw back. The one redccming feature in the message was that it again focussed attention on dealing with the supposed problem by international agreement and gave no encouragement to ideas of unilateral acticn.

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Discouraging

3. At his press conference Stans seemed to be deliberately narrowing the range of options' open to the U.S. Administration over textiles. fie discounted the suggestion that easier escape clause relief and adjustment assistance night provide a solution to the problems of the textile industry (page 16 of the transcript). This may prove unfortunate because it has been generally assumed here by those who wich to avoid an international confrontation over textiles that casing of escape clause and adjustment assist- ance criteria would be a key element in a rackage which the Admin- istration might present to Congress and to the industry as a reasonable alternative to the imposition of quotas, assuming that international negotiations had by then failed. Stans has, in

effect, begun to burn one of the boats on which the Administration might conduct a retreat. He has also passed up this opportunity to pour a little cold water on the hopes of the textile protecti- onisto: it was open to him to say that his discussions in Europe and Asia had revealed the serious dimensions of the problem and the great concern of the United States' trading partners about a

C. S. Inglefield, Esq.,

C.R.E.D.

3. Stewart, Bog., I.D.1, Hoard of Trade.

·

R. G. Giddens, Esq., Trade Policy Dept., F.C.0.- D. II. A. Hannay, Esq., UKDEL, Brussels. Miss J. Russell, UKIU Geneva.

Commercial Department, Tokyo.

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CONFIDENTIAL

RECEIVED IN REGISTRY NO51

-3 JUN 1969

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