Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

289. Telegram From the Mission in Geneva to the Department of State¹

Geneva, October 22, 1965, 1142Z.

TAGG 3506. For Governor Herter from Blumenthal. Subject: Cotton Textile: Text WW Proposal. Ref: TAGG 3507.²

Note by the Director-General.

It has been generally considered that the current trade negotiations—which are broader than strictly tariff negotiations—afford an opportunity to deal constructively with a variety of international trading problems. Accordingly, it is considered that an attempt should be made within the framework of the Kennedy Round to arrive at a mutually satisfactory overall arrangement on cotton textiles. (In this connexion it will be recalled that the Long-Term Arrangement is to be the subject of a major review later this year.)

It is suggested that the following points would be an appropriate basis for the negotiation of an overall arrangement:

(I) Negotiations should take place in a group composed of those countries which are both participants in the trade negotiations and are also signatories of the Long-Term Arrangement.

(II) Negotiations might take place under the following three headings, which for a number of participants are plainly interrelated:

(A) The greatest possible reduction of tariffs on cotton textiles by the importing countries;

(B) An understanding that the Long-Term Arrangement would be renewed in its present form for a further period;

(C) An understanding that the importing countries would apply the arrangement with greater flexibility and with full regard for the necessity to provide expanded access to their markets for the exporting countries.

(III) The first step in the negotiations might be the circulation by the secretariat of a paper which:

(A) Sets out the offers which have been made on tariffs in the Kennedy Round;

(B) Invites exporting countries to communicate any requests they wish to make for improvements in these offers;

(C) Invites proposals as to the length of the period for which the Long-Term Arrangement should be renewed;

(D) Invites exporting countries to submit proposals on how the importing countries should give effect to the principle referred to in (II) (C) above.

Tubby

1. Source: Department of State, Central Files, INCO–COTTON GATT. Limited Official Use; Priority. Repeated to Bonn, Brussels, for USEC, Cairo, Hong Kong, Karachi, London, Luxembourg for USEC, Paris for USOECD, New Delhi, Ottawa, Rome, Stockholm, The Hague, and Tokyo and passed to the White House for Herter.
2. Document 290.