Office of the Historian

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

Geneva, June 8, 1966.

TAGG 4107. For Governor Herter from Blumenthal. Subject: cotton textiles. Ref: TAGG 3506.2

1.
KR cotton textile sector group met June 7.
2.
WW, in opening remarks, made two points:
(A)
As result his consultations with interested governments, and responses to his Dec 29 letter,3 WW concluded that it not possible to [Page 780] obtain agreement on multilateral “package deal” approach (reftel). He proposed, therefore, that countries negotiate bilaterally in effort to maximize reduction of cotton textile tariffs in KR. He warned that time was growing short and countries should not miss opportunity afforded by KR. At same time, WW noted that for some countries ability to reduce tariffs was linked to continuation LTA.
(B)
LTA Article 8(D) discussions must begin by end of September, but do not have to be completed by Sept 30. Fourth annual LTA review Article 8(C) also had to be held in fall. WW proposed CTC meet September 26 lasting week or ten days. Meeting would start with Article 8(C) annual review, immediately followed by initiation of Article 8(D) discussions on future of LTA. He anticipated that after initial round of 8(D) discussions CTC would recess briefly. WW called on countries to use period between now and Sept 26 in constructive effort to “prepare ground for meeting,” and pointed out dangers of countries coming to Sept 26 meeting without adequate inter-governmental preparation.
3.
WW’s proposals were accepted by group. Japan, Pakistan, India, UAR, Spain, Portugal, Turkey, US, EEC, Austria, Sweden, Denmark, Norway, Canada all made brief statements. US noted shortness of time available in KR, and importance of using time before Sept 26 constructively. We said that while we could leave aside formal linkage of KR and LTA as incorporated in package deal, everyone recognized de facto linkage. We indicated willingness to negotiate bilaterally re tariff cuts LTA administration; such negotiations based on assumption by US of LTA renewal.
4.
India (Swarup) commented that GOI had already made written suggestions re future of LTA. WW indicated that he had in mind intergovernmental consultations which went beyond such unilateral pronouncements.
Tubby
  1. Source: Department of State, Central Files, INCO–COTTON GATT. Limited Official Use; Priority. There is no time of transmission on the source text; the telegram was received at 7:37 a.m. Repeated to Bonn, Brussels for USEC, The Hague, Hong Kong, London, Luxembourg for USEC, New Delhi, Paris for USOECD, Rawalpindi, Rome, and Tokyo and passed to the White House.↩
  2. Document 290.↩
  3. Not found.↩