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agreement did not. He said that he and his colleagues

would make a full report of the discussions to their

respective governments. The U.S. Government representatives

would no doubt be talking with other suppliers to the U.S.

market and when these talks were completed it was likely

that there would be further discussions.

89.

Mr. Nehmer thought that both sides had gone as

far as they could and believed that the discussions had

been useful. He warned that there were powerful protectionist

forces in the U.S. who had considerable influence with

Congress. If a negotiated solution to the textile problem

was not forthcoming, then an imposed solution certainly

would be. A failure to agree could lead to the dominance

within the U.S. of those who would not draw the line of

protection at textiles. He concluded by thanking Sir Eugene

Melville and his colleagues for providing an opportunity

for the discussions.

90.

The discussions closed at 5.25 p.m. o'clock.

91.

A summary of the discussions telegraphed at the

Encl. 3

conclusion of the discussions is at Enclosure 3.

Encls:

Commerce and Industry Department, 22nd October, 1969.

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