CYPHER/CAT.A
PRIORITY WASHINGTON
TELEGRAM NO.3164
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
RECEIVED IN
REGISTRY No. C1
17 NOV 1969
18 NOVEMBER 1969
Us File
Syz
CONFIDENTIAL.
NEUTRAL.
NKK6/30XK
ADDRESSED TO F.C.0. TELEGRAM NO.3164 OF 18 NOVEMBER REPEATED FOR
INFORMATION TO UKMIS GENEVA UKDEL BRUSSELS HONG KONG AND SAVING
TO UKDEL CECD TOKYO BONN ROME AND PARIS.
U.S. TRADE LEGISLATION.
છે
THE PRESIDENT TODAY SUBMITTED HIS DRAFT TRADE LEGISLATION. TO
CONGRESS. THE MAIN POINTS ARE SUMMARISED IN M.I.F.T. TEXTS OF
THE PRESIDENT'S STATEMENT, THE BILL AND THE OFFICIAL SECTION-BY- SECTION ANALYSIS OF IT FOLLOW BY BAG TO F.C.0., BOARD OF TRADE,.
AND HONG KONG ONLY.
2. THE DRAFT LEGISLATION INCORPORATES WITH A FEW CHANGES THE MAIN
ELEMENTS OF THE BILL WHICH WAS SUBMITTED TO CONGRESS BY THE LAST
ADMINISTRATION IN 1968 AND WHICH FAILED TO ENERGE FROM THE WAYS -
AND MEANS COMMITTEE. IT HAS HOWEVER BEEN TOUGHENED BY THE ADDITION
OF NEW SECTIONS WHICH EASE THE CRITERIA FOR ESCAPE CLAUSE RELIEF AND
EXTEND THE PRESIDENT'S RETALIATORY POWERS UNDER SECTION 252 OF THE
1962 TRADE EXPANSION ACT. THESE ADDITIONS SHOULD MAKE THE
PACKAGE MORE PALATABLE TO CONGRESS AND WILL HELP TO BUY SUPPORT FROM
CERTAIN SECTIONS OF INDUSTRY. BUT THE LEGISLATION'S CHANCES. FOR
PASSAGE WILL STILL DEPEND TO A CONSIDERABLE EXTENT ON HOW HARD THE
CHEMICAL INDUSTRY LOBBIES TO PREVENT THE ELIMINATION OF A.S.P.:
AND EVEN IF CONGRESS PROVES WILLING TO ABOLISH A.S.P. THERE IS A
RISK THAT PROTECTIONIST AMENDMENTS MAY BE ADDED TO THE BILL TO
SUIT THE INTERESTS OF PARTICULAR INDUSTRIES SUCH AS TEXTILES AND
FOOTWEAR. THE CHANCES THAT THE LEGISLATION WILL EMERGE IN ACCEPTABLE
FORM ARE THUS STILL PROBLEMATICAL.
3. THE PRESIDENT'S STATEMENT CONTAINED A USEFUL REAFFIRMATION OF
HIS BELIEF IN FREER TRADE. HE ARGUED THAT U.S. TRADE RESTRICTIONS
WHICH WERE NOT ACCEPTED BY THEIR TRADING PARTNERS WOULD PROVOKE
RETALIATION AND THAT BOTH SIDES WOULD 'LOSE. THERE WAS, HOWEVER,
NO INDICATION THAT HE WOULD APPLY THIS ARGUMENT TO U.S. HANDLING
CONFIDENTIAL
/OF THE TEXTILE
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