premature. An attempt to establish a precedent from the bilateral agreements in certain limited categories of non-cotton textiles
into which Hong Kong had previously entered with a few countries
was countered by the argument that these were not comprehensive
agreements and in any case only conceded restraint where serious
injury to particular sectors of the domestic industry had been
demonstrated. Finally the Americans made their familiar reference
to the danger that if voluntary restraint was unattainable Congress
might insist on the enactment of more damaging measures, perhaps
not only affecting textiles.
At the CTC meeting which immediately preceded these bilateral
discussions the question of US pressure for some kind of restraint
over non-cotton textiles was prominent in the minds of most dele- -
gations. The Americans were less outspoken than they might have
been. However, it is clear that they are determined by one means or another that the President's pre-election commitment to the US
textile industry shall be fulfilled. We are uncertain how aware
the President is himself of the implications for international
trade of yielding to protectionist pressure and have been giving
thought to a suggestion from our Embassy in Washington that the
surest way of bringing our arguments to his personal attention
might be by asking the Prime Minister to send him a message.
Such a message, we have concluded, would be a last major card,
which we ought not to play unless and until we are sure that it would have a good chance of influencing the outcome.
A similar approach to that made to Hong Kong has now been made by the Americans to the other three Far Eastern "key export- ing countries". However, Taiwan and Korea were not approached until a few days ago and even the Japanese not until 2 October.
The Japanese response will certainly be important. So far the indications are that they have stood as firm in their opposition as Hong Kong and have indeed reacted very similarly. However, if the Japanese weaken it will probably be for political reasona and
the time of greatest pressure on them will be when their Prime
Minister visits Washington on 19 November.
/ Our
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