Wider LTA Lost in Shuffle As Whole Principle Assailed
By BERNARD LEASON Cable Fairchild News Service®)
GENEVA. Any proposal to broaden the Long Term Arrangement on cotton textiles to include wool and man-made fi- ber textiles seems out of the question at this time.
This was the feeling Thursday when the GATT cotton textile committee discussed the future of LTA. The discussions were given up after one hour.
It is now virtually certain no decision on LTA prolongation will be reached at
•
the current meeting. More speakers are against pro- longation than are in favor.
The United States is the only nation which, until now, has come out firmly
Continued from Page One declaring LTA has worked and should be extended.
A Japanese spokesman said Thursday LTA should be allowed to expire. He ar- gued LTA was originally an exceptional and provi- sional arrangement meant to help adjustment of industrial problems in signatory nations. It had been extended twice, he said, and there is danger in per- petuating it. The Japanese state- ment concluded extension of LTA
as matter of principle is "not de- sirable."
The United States delegate then reiterated the American be- lief LTA has worked well, bene- fited both
and importers exporter nations and he therefore supported its extension.
It is understood the Korean delegate indicated his country was against LTA extension and argued severe American import restrictions under LTA terms had worked to the detriment of Korean industry.
Israel already has gone on record against LTA and the UK is expected to do the same when it speaks today.
The only fresh air was a sug- gestion by the European Eco- nomic Community delegate that if it's now a question of wool and man-mades as well as cot- ton, then perhaps a committee should appoint a study group to examine possibilities offered by GATT arlicies. But he did not suggest there might be a new arrangement worked out to cover other fibers.
It was understood Canada was likewise "not extremely positive on the subject of prolongation.
Conference sources said al- though Japan was extremely definite in its negative attitude, it left the impression it was open
to reason.
The United States position is now uncertain. Delegates in the lobby felt Wednesday's initial American statement was re- struined. The United States ap- parently is not prepared to push now for any revision of LTA ei- ther to beef up its protective clauses or to broaden its terms of reference. The impression is the United States would be pleased just to keep LTA Cov- erage on cotton, let alone ex- pand it. It's understood Wash- ington believes the United States can live. with present cotton textile import levels but nothing more liberal,
Despite negative opinions ex- pressed so far, it's believed that when the chips are down LTA will be prolonged without change. One delegate expressed the opin- ion the United States thus far has borne the brunt of criticism for too-rigid implementation of LTA--but criticism has been in- direct and low-keyed.
A big and effective American
which has argument,
served probably to keep criticism fairly muted, is that domestic political pressures on the Nixon Admin- istration could force Congres- sional protectionist action unless everybody talks sense. This ar- gument, however, does not do the whole trick and the Ameri- can bargaining position seems not particularly strong without this veiled threat.
Japanese sources somewhat bitterly point out U. S. wants it both ways wants liberalization į of Japanese trade and capitat
investment
is restrictions, but not willing to give ou the textile front.
It's now being put about that although theoretically, the de- cision on LTA prolongation is required now, member countries really have until next year to
nay. The current say yea or meeting will be more useful for establishing bargaining positions than anything else.
What is happening here, how- ever, is of probably more far- reaching importance than the textile sector. Conflicting im port-export pressures in numer- ous industrial areas is now build- ing to a point where underde- veloped nations, which LTA was at least partially designed to aid, are secondary.
At issue among other things is existence of any LTA-type multilateral agreement to regu- late textiles flow. This issue is more vital to developed ma.151s than to underdeveloped F of conversion into more sophisti- cated and proinable man-mque fiber products.
Such consideration probably prompted the Japanese Thursday to say that as a matter of prin- ciple, extension of LTA is unde- sirable. The real question now
the whether
United must be States can in fact get what it wants and needs by voluntary agreement and whether it ulti- mately could avoid legislative controls which could ignite a very unfortunate chain reaction,
DAILY NEWS
RECORD
10/10/69.
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