Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

286. Memorandum From Acting Secretary of State Ball to President Kennedy⁰

Washington, undated.

SUBJECT

• Wool Textiles

In accordance with your memorandum of August 12,¹ the Embassy in London was instructed to discuss the proposal for an international agreement on wool textiles with Alan Green, Minister of State in the Board of Trade. Mr. Green is on holiday in Rhodes and will not be back in London until September 20. The President of the Board of Trade, Mr. Erroll, is also abroad, until August 26. In the absence of these Ministers, the Embassy discussed the matter with Sir Richard Powell, Permanent Secretary of the Board of Trade, emphasizing the importance the United States attaches to the initiation of steps looking toward an international arrangement on wool textiles.

Powell informed the Embassy that Alan Green had met with representatives of the British wool textile industry several weeks ago, had agreed to consider their views and, approximately one week ago, had told them by letter that, after careful consideration of their proposals, Her Majesty’s Government maintained its view in opposition to an international wool textile arrangement. Powell pointed out that Green’s reply could not be interpreted as encouraging the belief that the British Government would give favorable consideration to an approach by the United States regarding an international wool textile arrangement. In response to a reiteration of U.S. views by the Embassy, Powell stated that the decision communicated by Green was taken at the Ministerial (political) level. We understand that the U.K. position has been passed on to the U.S. trade press by the British Embassy.

In light of the consistent opposition of the United Kingdom and other exporting countries to an international agreement covering wool textiles, I believe consideration should be given to steps by the Administration to initiate a Tariff Commission investigation of the wool textile situation under Section 332 of the Tariff Act of 1930. We continue to be handicapped both internationally and domestically by the lack of an objective analysis of conditions in the wool textile industry. The domestic industry insists that injury from imports is a fact. On the other hand, importers and exporting countries maintain that no injury has been demonstrated; they expect us to follow established procedures to determine whether there is serious injury or the threat of serious injury from increased imports. Any efforts to help the industry through domestic programs are stymied by the absence of an independent and thorough study such as the Tariff Commission makes under various provisions of the U.S. legislation. Only after a factual analysis has been made by the Tariff Commission will we be likely, in my view, to make progress internationally or domestically toward the solution of the wool textile problem.

The proposal for a Tariff Commission study and report has been made in the past and has been opposed by the domestic industry, which adamantly refuses to re-initiate the action itself. Consequently, the domestic industry would probably not consider reference to the Tariff Commission as responsive to their situation. In the circumstances, I suggest that you might wish to have Mr. Feldman talk with the interested Senators, lay before them the information on the U.K. position received through Embassy London, point out the impasse which has again been reached, and suggest a Tariff Commission report as a sound basis for further efforts to help the domestic industry. If some support for this approach were generated, you could then direct the Tariff Commission to undertake the industry study.²

0. Source: Department of State, Central Files, INCO-WOOL 4. Limited Official Use. Drafted by Joseph A. Greenwald on August 20 (E/OT) and cleared by G. Griffith Johnson. Sent to President Kennedy under cover of a memorandum from Benjamin H. Read to McGeorge Bundy.
1. Not found.
2. Printed from an unsigned copy.