Since the steps to implement the remaining actions contained in Tab A
will be accomplished through the submission of a legislative program,
preparation of which is under way, I do not believe a formal Decision
Memorandum should be promulgated, especially since you will wish to
retain some flexibility as to details of the legislative program.
Tab A5
Actions Resulting From the NSC Meeting on Trade, April 9, 1969
The President reiterated his commitment to free trade and decided
that new trade legislation in 1969 should provide him with limited
authority to reduce tariffs, should liberalize the escape clause,
should liberalize the conditions required for adjustment assistance
to businesses and workers dislocated by imports, and should
eliminate the American Selling Price (ASP) method of valuation for imposing tariffs. The
legislation is to be ready for submission this Spring.
The President also decided that a commission would be created to
review the entire range of trade and production relationships among
countries. The terms of reference for the commission should be
considerably broader than for any such study in the past. It should
report its findings and policy recommendations six to twelve months
after its appointment. The President indicated that the commission
should have a strong staff and a prominent chairman who was not
unduly identified with a particular point of view. The formation of
the commission should be announced this spring, perhaps in
conjunction with the announcement of the new legislative
package.
In discussing the position Secretary Stans would take in his upcoming trip to Europe, the
President assented to his raising in low key with the Europeans the
possibility of convening a meeting in June, under GATT auspices, to discuss the problems
of world trade in synthetic and woolen textiles and methods of
restraining the growth of such textile imports into the United
States. Secretary Stans
should emphasize the political difficulties a sharp growth in
textile imports is causing in the United States, and the threat it
poses to the liberal trade policy the Administration wants to
pursue. The President indicated the desirability of drawing public
attention to the strong sentiments for protection now prevailing in
Congress, either through featured articles or through a publicized
meeting of Congressmen with Secretary Stans.
As an indication of his desire to move in the direction of more
liberal trade, the President authorized Secretary Stans to assure the Europeans,
without publicity, of the intention of the Administration soon after
his return to submit new interim trade legislation and to create a
blue-ribbon commission to review the future of U.S. trade and
production relations with its major trading partners.
[Page 512]
On the question of tariff preferences to developing countries, the
President instructed Stans to
indicate, when asked, that his Administration maintains an
open-minded position although it will not be able to make any firm
commitments until further study is completed. The scheme would
appear to have a small effect on the U.S. but could mean a great
deal in our political relations with the less developed countries.
The Secretary should seek to avoid letting the Europeans reject the
approach and should seek to keep it open.
The President also asked Secretary Stans to listen attentively to the European position
on East-West trade and indicate that the U.S. is re-examining its
position on the matter. His own disposition is that some of our
present restrictions are outmoded but he wants to save any
relaxation for possible bargaining with the Soviet Union in a
broader political context.
The President indicated that the Administration should take greater
cognizance of the problems of U.S. businessmen and their concerns
abroad, even when ultimately they may have to be over-ridden by
foreign policy considerations. The business community should be
convinced that its interests are adequately represented by the
Government.
