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3. TO THESE POINTS WE REPLIED IN SIMILAR GENERAL TERMS, POINTING OUT PARTICULARLY THAT
(A) SINCE THE RATIO OF ALL IMPORTS TO CONSUMPTION WAS LOW AND SINCE A LARGE PART OF THE INCREASE IN MMF IMPORTS 1966-68
WAS FROM NON-ASIAN SOURCES (NEHMER COUNTERED THAT THIS WAS MAINLY YARN AND NOT FABRICS OR APPAREL) THEY COULD HARDLY BE BLAMED FOR ANY SITUATION OF DISRUPTION THAT MIGHT EXIST,
(B) THE INCREASE IN IMPORTS OF TEXTILES (ALL FIBRES) WAS LOWER THAM THE INCREASE IN US IMPORTS OF ALL MANUFACTURED GOODS AND NOT EXCEPTIONAL IF COMPARED WITH THE GENERAL INCREASE IN WORLD TRADE,
(C) THE GROWTH IN IMPORTS WAS THE RESULT OF A RAPIDLY EXPANDING AND SHIFTING DEMAND, WITH WHICH THE DOMESTIC INDUSTRY HAD NOT BEEN ABLE TO KEEP PACE, ESPECIALLY FOR CERTAIN MMF BLENDS AND FOR KNITTED GOODS,
DÌ NEVERTHELESS THE VAST BULK OF GROWTH IN THE HOME MARKET HAD DEEN MET BY INCREASING US PRODUCTION AND NOT BY IMPORTS, AND IN A TIME OF RECESSION, SUCH AS 1967, IMPORTS HAD FALLEN OFF MORE SIGNIFICANTLY THAN HOME PRODUCTION.
4. NEHMER CONTINUED TO MAINTAIN THAT DISRUPTION WAS A PRESENT FACT IN QUOTE LARGE PARTS UNQUOTE OF THE US INDUSTRY AND THAT THE THREAT OF DISRUPTION WAS CAUSING PROBLEMS IN OTHER PARTS OF IT. WHEN HE CLAIMED THAT IT WAS NOT HONG KONG IMPORTS, OR ANY OTHER SINGLE SUPPLIER'S, BUT THE TOTALITY THAT WAS RESPONSIBLE FOR THIS, HE WAS CHALLENGED AS TO WHETHER THE US WOULD ALSO ASK THE OTHERS TO NEGOTIATE. HE CONFIRMED THAT QUOTE OTHER PRINCIPAL SUPPLIERS' WOULD BE APPROACHED (ONE OTHER IN ADDITION TO JAPAN ALREADY HAD BEEN), BUT THEN ADMITTED THAT ONLY QUOTE LOW-COST UNQUOTE SUPPLIERS WERE TO BE INVOLVED AND SPECIFICALLY STATED THAT THE UK WOULD NOT BE APPROACHED ON WOOL)
5. ON EMPLOYMENT ASPECTS, THE US SIDE CLAIMED THAT THE TEXTILE INDUSTRY HAD LOST 30,000 JOBS SINCE JANUARY. THE EMPHASIS WAS WHOLLY ON THE SOCIAL PROBLEM THAT WOULD RESULT IF A MARKED DECLINE IN THE INDUSTRY'S LABOUR FORCE TOOK PLACE BUT THERE WAS NO REAL EFFORT TO DEMO STATE THAT THIS WAS AN IMMINENT DANGER.
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