TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 68

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at the legality in G.A.T.T. of quotas on non-cotton textiles

and at damage to domestic producers by reason of imports.

Mr. Nehmer agreed saying the worst possible thing that

could happen would be a situation in which there had to be

a decision within the U.S. Government between trade policy

and social policy. He felt that social policy would in-

evitably emerge the victor from any such confrontation.

75.

Mr Nehmer said he would now like to outline briefly

what the U.S. proposals for a comprehensive bilateral agree-

ment were, since he thought this may influence the H.K.

Government's thinking that a new issue of principle was

involved. He said the comprehensive bilateral agreement

would cover all man made and wool fibre textiles with

overall ceilings on wool and man made fibres. Within each

overall ceiling there would be two group ceilings, one for

apparel and one for all other items.

Within each group

ceiling there would be series of categories some of which

would be subject to specific limits. In negotiating such

an agreement, the U.S. Government would be prepared to

offer and consider concessions in respect of the bilateral

agreement on cottons, such as fewer specific category limits.

The bilateral agreement on wool and man made fibre products

would not have as many specific limits as had the cotton

bilateral.

Category jumping would be possible in the

proposed bilateral but quantities would be confined within

/the

CONFIDENTIAL