CONFIDENTIAL
7
They have shown that they would not be bought off merely by a GATT study. We would not therefore even get them round the table unless we showed from the start that we meant business, i.e. an extension of the ITA to cover man-made ribres and woollens or a parallel arrangement for these additi onal textile groups.
Long rejects the first course because he is now convinced that the Americans do mean business and that the President will have to have something to show for his undertaking to the textile industry before next year's Congressional elections. He admits that there may be a difference of opinion on this, but thinks his own view is realistic. By the same token he is now inclined to encourage the Japanese and other Asian suppliers to come to the best compromise they can with the Amoricens. He thinks this can be done on the basis of a limited arrangement for selective voluntary restraints without any overall ceiling, but with some general formula for considering other categories ir circumstances change. He thinks the Americans have some case for this given the fact that they are the only market which does not restrict supplies from anywhere. He also has in mind that if this kind of settlement were reached the GATT could take up - but not immediately and possibly not until after the American elections next year the general problem of the future of international trading in textiles. He envisages a general study done within the GATT and using GATT's own resources.
I told Long that, while I was sure that you would be interested in his thinking, I did not believe you would entirely share it or be ready, at this stage at least, to go along with his conclusions. A question from him about Hong Kong's attitude gave me an opportunity to explain how they had now come into line with us. I also said that it seemed by no means certain that the Japanese would be ready to negotiate even selective voluntary restraints; but Long doubted this and thought that something would come out of the Sato visit. He was, however, going to Japan at the end of the month and would be able to judge the position better then. I said I hoped he would let us know
/the
CONFIDENTIAL
No comments yet.
Private notes are available after approval.