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204
BOARD OF TRADE,
1 Victoria Street, London, S.W.1.
28th October, 1969.
U.8. Textile Imports
I am grateful to you for your letter of October 22 reporting
One must on your conversation with Olivier Long on that date.
He took the view earlier concede that he has been consistent. this year, before the Stans visit, that the least unsatisfactory outcome, assuming that some concession would have to be made to American pressure, was sone measure of selective voluntary restraint
and that specific on the part of the four Far Eastern suppliers; discussion in the G.A.T.T. of the "American problem" would be dangerous because the Americans would not allow such discussion to fizzle out with no end result. This view deserves respect.
2. The snag, of courso, is that the Americans appear to have no case, except perhaps possibly on the odd item, for selective restraints; and if the Far Eastern suppliers are bludgeoned into conceding them where the statistical basis is flimsy, it is only too likely to open the door to the spread of such restraints to If this happens on cover most of the major importing markets. non-cotton textiles it is not a very far step to its extension to` other manufactures on which the statistical case may be just as good (or rather bad).
3. It 18, of course, perfectly true that when we and the E.E.C. suggest a study of the facts in G.A.T.T., we are not without hope that the subject could be talked out, at any rate for a considerable time, but no specific action taken. And both we and the E.E.C. would like to encourage reciprocal liberalisation of our trade with Japan rather than the maintenance of restrictions on both sides. It may be that our hopes that G.A.T.T. discussions would not lead to action are unrealistic and that the Americans would have to have
As you will see some assurance of getting something out of it. from a telegram which will go off to-day, Wada (Japanese Embassy) has told Hughes that his Government have talked unofficially to the Americans about willingness to engage in a "multilateral negotiation" which goes a good deal further than what either wo or the E.E.C. onid at the Geneva noeting. At all events, if there is discussion in the G.A.T.T. we can expect to have some influence on the outcome, whereas once voluntary restraints have been conceded some of the pass will have been cold in advance.
4. We had a moeting here under B111 Hughes' chairmanship this morning and considered among other things whether there would be virtue in asking you to tackle Long again before he goes to Japan.
It is not On balance, we thought that this was undesirable. likely that a further approach would change Long's attitude which He knows what our views are and 18 a perfectly respectable one. there may be some virtue in a range of opinion at this stage,
His Excellency Sir Eugene Melville,
K.C.H.O.,
United Kingdom Mission,
37-39 rue de Vermont,
Geneva.
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