370. Telegram From the Mission to the Organization for Economic Cooperation and Development to the Department of State1

22002. Ref: State 250536.2

Enactment of bill increasing duties on certain blended fabrics containing reprocessed or re-used wool to over 100 percent ad valorem [Page 867] would of course have irritant effect on US-European trade relations. If, as Italians allege, action inconsistent with US Kennedy Round undertakings, would further reduce already dim prospects European KR acceleration.
Exceptional height of proposed duty would be cited as example by European protectionists and used as argument that US practices not consistent with professed liberal trade policies. Duty increase by US inconsistent with obligations would also weaken basis our position that emergency French import restrictions inappropriate and should be eliminated.
  1. Source: Department of State, Central Files, INCO–WOOL 17 US. Limited Official Use. Repeated to Rome, Geneva, and Brussels.
  2. Telegram 250536, October 4, noted that a Senate-House Conference Committee agreed upon such a bill (H.R. 653). (Ibid.)