273. Telegram From the Department of State to the Embassy in Italy0
1980. Secretary spoke briefly and in low key to Italian Charge today informing him that despite serious problems confronting US wool textile industry and domestic political pressures, President had decided not take action re wool textile imports at this time. This reflects President’s determination that we proceed toward trade liberalization pursuant to Trade Expansion Act. In order wool textile import problem not interfere with preparations for trade negotiations, Secretary pointed out it would be helpful if GOI might use its influence with its industry to prevent any substantial increases in exports during this period. Emphasized this approach did not represent a change in US economic philosophy but was designed deal with an immediate domestic problem. Also made clear he not suggesting GOI had any obligations curtail exports but its cooperation would be helpful.
Secretary commented in similar vein to British Ambassador.
- Source: Department of State, Central Files, INCO-WOOL IT. Confidential. Drafted by A. Eugene Frank (EUR/WE); cleared by Stanley Nehmer (OR), Emory C. Swank (S) and Warren E. Slater (S/S-S); and approved by Galen L. Stone (EUR/WE). Also sent to London.↩