Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

263. Memorandum of Telephone Conversation¹

Washington, November 11, 1964.

Governor Herter and McGeorge Bundy

Mr. Bundy telephoned Governor Herter and advised him that the President had signed the document November 10² for the U.S. exceptions to be submitted on November 16th.

The President had noted Secretary Hodges’ appeal,³ and was going to discuss it with him today. However, there was very little likelihood that the President would have any change of heart, and Mr. Bundy pointed out to the President that if he did, he would have to listen to everybody else on Thursday and Friday.

Mr. Bundy said that the document would not go into effect, however, until tonight, after the President had talked to Secretary Hodges. Mr. Bundy said he would be calling the ranch later today to confirm there was no change in the President’s thinking, and that the signed document would be sent over to Governor Herter the first thing in the morning.

Governor Herter expressed his displeasure on Secretary Hodges’ tactics with respect to the textile question. Mr. Bundy agreed, but added that in view of the overwhelming agreement at the Cabinet level TEAAC meeting to support Governor Herter and STR recommendations, that Secretary Hodges’ arguments would not be persuasive. Governor Herter added it was a deliberate violation of the GATT commitment.

Governor Herter then turned to another subject; namely, the refusal of Mexico to draw up a trade agreement with us. Mr. Bundy said that Tom Mann was going to see the President tomorrow, and that perhaps Governor Herter would want to discuss this matter with him before he left for the Ranch. Governor Herter said he would.

Mr. Bundy then mentioned the clothespins, and said that the press release perhaps should be changed to say the President, on Governor Herter’s recommendation, had approved it. Governor Herter agreed it would be a good idea. The President approved the clothespins document.⁴

1. Source: Kennedy Library, Herter Papers, White House Subject File, Withdrawn Documents, Box 9, Exceptions Folder 1, Box 3. Secret. The source text bears Herter’s handwritten initials.
2. At this point, the source text bears the handwritten notation, “November 10.” This reference may be to Herter’s November 9 memorandum (Document 262), which may have been a draft of the final version sent to the President. No November 10 text has been found. For further information on President Johnson’s decision, see Document 292.
3. No formal appeal from Hodges to the President at this time has been found.
4. Not found.