TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 185

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conclusion that while we would wish for a short extension

of the Long Term Arrangement, in the longer term we would like to see other countries give up quota restrictions on textile imports. If this does not happen, we run the risk that once our domestic industry is protected only by a tariff, goods which are excluded from other markets by quantitative

restraints may be diverted here notwithstanding the tariff.

3. The main immediate problem however concerns non cotton

textiles. In an effort to further the implementation of

Mr. Nixon's election pledge to US industry Mr. Stans, the

US Secretary for Commerce, undertook a tour of European and some Asian countries (including Hong Kong) during the earlier

part of this year in an effort to secure agreement to some form of multilateral arrangement similar to the present

arrangements for cotton textiles, Coco ver intemational

trade in noa cotton textilos. If such an agreement could bo achieved it would enable the American authorities to negotiate restraint arrangements with the exporting countries and thus

provide protection for the domestic industry. Hr. Stana

met with a solid resistance to his proposals at each placo

which he visited and it was made clear to him in London and

elsewhero that, on the evidence available, there seemod no

good economic case for the protection of the US textile

industry against imports.

It was suggested that any diffi-

culties which were being encountered might be overcome

by domestic measures by the US Administration.

We have also

CONFIDENTIAL