A
CIAN
Textile Problems
Difficulties at present being encountered stem from
three main sources.
2.
(1) The Long Term Arrangement for cotton textiles
(which is designed to provide for countries to mako bilateral arrangements to control their imports of cotton textiles while allowing room for growth, ceases to operate at the end of September 1970 unless it is renewed;
(2) In his pro-election campaign last year, Mr.
Nixon undertook to take measures to protect the US textile industry against competition from
imports;
(3) The increasing growth of man-nade fibro production especially in certain low cost countries including Hong Kong, has led to bilateral agreement between those countries and some of the developed importing countries to restrict exports in specific products where there is evidence of damage to the domestic industry.
Discussions about the future of the Long Tera Arrangement on cotton textiles are being held in Geneva this week.
Our
recent decision to abolish the quota system on cotton textiles and to rely entirely on a tari for cotton (as well as non cotton) goods as from Janamry 1972, has led us to the
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CONFIDENTIAL
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