CYPHER CAT A
CONFIDENTIAL
PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 629
14 NOVEMBER 1969
339
CONFIDENTIAL
NEUTRAL
Us File
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ADDRESSED TO FCO TEL NO 629 OF 14 NOVEMBER REPTD FOR INFMN ROUTINE TO TOKYO, WASHINGTON AND HONG KONG AND SAVING TO OTTAWA AND SEOUL.
MY TELEGRAM NO. 626 AND YOUR CREDAS NOS. 51 AND 52 (NOT TO ALL).
IN LUNCH-TIME CONVERSATION TODAY WITH CARL GILBERT (U.S. SPECIAL TRADE REPRESENTATIVE) I GOT THE FOLLOWING INDICATIONS OF U.S. TRADE POLICY:
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1) THE TRADE BILL WILL BE INTRODUCED INTO CONGRESS QUOTE SHORTLY UNQUOTE. THE LINK WITH EXTENDING TIME-LIMIT ON ASP IS RECOGNISED. THE AIM WILL BE TO GET THE BILL THROUGH BY NEXT SUMMER AT LATEST (11) RELAXATION IN ESCAPE CLAUSE PROCEDURES WHICH BILL WILL CONTAIN ARE THOUGHT LIKELY TO ASSIST ADMINISTRATION TO RESIST PRESSURES IN CONGRESS FOR QUOTA LEGISLATION. DECISIONS IN PARTICULAR CASES WILL REMAIN WITH ADMINISTRATION, LEAVING WAY OPEN FOR ADJUSTMENT MEASURES AS ALTERNATIVE TO IMPORT RESTRICTIONS. GILBERT SAID HE WAS PREPARED TO MAKE HIMSELF QUOTE EVEN MORE UNPOPULAR UNQUOTE IN UPHOLDING LIBERAL TRADE POLICIES.
(111) TEXTILES ARE STILL ADMINISTRATION'S TRADE PROBLEM NUMBER ONE. THE AMERICANS ARE NOT INTERESTED IN GATT ACTION UNTIL THEY HAVE SETTLED BILATERALLY WITH THE MAIN EASTERN EXPORTERS, JAPAN IS FIRST PRIORITY AND FURTHER BILATERAL TALKS WILL BE HELD WITH THEM IN GENEVA ON 17 NOVEMBER. THEY WILL BE CALLED QUOTE CONSULTATIONS UNQUOTE BUT THE AMERICANS THINK THAT THE JAPANESE ARE NOW READY TO NEGOTIATE ON VOLUNTARY RESTRAINTS (THEY DID NOT SAY WHAT KIND). THEY ARE THEREFORE SENDING STRONG TEAM LED BY GREENWALD. BOTH SIDES WISH TO KEEP THIS TRADE PROBLEM DISTINCT FROM POLITICAL ISSUES LIKE OKINAWA: HENCE PROBABLY TIMING AND CHOICE OF GENEVA (ALTHOUGH GATT IS NOT BEING DIRECTLY INVOLVED).
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RECEIVED IN REGISTRY No.51
17 NOV 1969
HICKG/DOW/L
LAST REF
335
CONFIDENTIAL
(IV) AMERICANS
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