CYPHER/CAT A.
PRIORITY WASHINGTON
TELEGRAM NO 2715
A CONFIDENTIAL.
NE RAL.
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH › OFFICE
7 OCTOBER 1969.
ADDSD TO FCO TELNO 2815 OF 7 OCTOBER] REPTD FOR INFMN HONG KONG
AND SAVING TO TOKYO UKMIS GENEVA OTTAWA.
M.1.P.T. :U.S. TEXTILE IMPORTS.
FOLLOWING IS A SUGGESTED TEXT.
BEGINS:
I WOULD LIKE YOU TO KNOW MY CONCERN OVER THE SITUATION WHICH IS DEVELOPING IN RESPECT OF TEXTILE IMPORTS INTO THE UNITED STATES. I FEAR THAT THE PROPOSALS FOR COMPREHENSIVE RESTRAINTS ON NON- COTTON TEXTILE IMPORTS WHICH THE U.S. GOVERNMENT ARE PRESSING
UPON HONG KONG AND OTHER EXPORTING COUNTRIES WILL LEAD TO A
SERICUS SETBACK TO THE OBJECTIVES OF FULLER AND FREER TRADE WHICH
WE HAVE BOTH SET OURSELVES..
AS YOU KNOW, THE GENERAL AGREEMENT ON TARIFFS AND TRADE ALLOWS
EMERGENCY ACTION AGAINST IMPORTS OF PARTICULAR PRODUCTS ONLY IF
THESE CAUSE OR THREATEN SERIOUS INJURY TO DOMESTIC PRODUCERS.
UP UNTIL NOW, I THINK IT HAS BEEN COMMON GROUND BETWEEN THE U.S.
AND BRITISH GOVERNMENTS THAT THIS CONDITION IS ESSENTIAL
TO PREVENT INDISCRIMINATE INTERFERENCE WITH LEGITIMATE TRADE.
WE RECOGNISE THAT IMPORTS OF NON-COTTON TEXTILES INTO THE UNITED
STATES ARE RISING, AS INDEED THEY ARE IN OUR OWN MARKET. BUT WE
DO FIND IT VERY DIFFICULT TO SEE THAT THESE THREATEN SERIOUS
INJURY TO THE AMERICAN TEXTILE INDUSTRY AS A WHOLE FOR, WHILE IMPORTS HAVE DEEN RISING, DOMESTIC PRODUCTION, SALES, PROFITS AND EMPLOYMENT HAVE BEEN RISING AT THE SAME TIME. IN THESE CIRCUMSTANCES
IT WOULD, I FEEL, BE HARD TO JUSTIFY UNDER GATT COMPREHENSIVE RESTRAINTS OF ANY KIND, EVEN THOSE ALLOWING FOR GROWTH AS YOU
/ENVISAGE.
CONFIDENT IAL
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