Office of the Historian

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

Geneva, December 22, 1965, 1624Z.

TAGG 3725. For Governor Herter from Blumenthal. Ref: (A) ND’s 1507 to Dept.2 (B) TAGG 3683.3 Subject: cotton textiles.

1.
Re last para reftel A, package deal approach emerged from Dec 6–10 CTC meeting4 with considerably stronger support from most interested countries. US del position on package deal unchanged, and in view increasing interest by others in this approach we see no reason to modify our position. Specifically, we are continuing to firmly discourage idea that any changes can be made in LTA.
2.
Package deal now has support of all key importers and exporters except India and Pakistan. At CTC meeting position of both these countries far from adamant. However, do not think it useful to intervene in New Delhi as suggested by Doraiswami in reftel B for reasons cited below.
3.
At CTC meeting WW highlighted package deal approach as best means of improving conditions of cotton textile trade. Yesterday WW told us he plans to urge countries to move ahead with substantive discussions on countries’ desiderata re specific parts of package, i.e. nature of tariff cuts and exceptions, liberalization of administration, and LTA extension. In this way we would hope to avoid procedural debate on whether all elements of package are equally open for negotiation. WW would like these substantive discussions to start promptly in January. We hope both India and Pakistan will be ready to join in this effort. If not, negotiations with other exporting and importing countries can move ahead in any case. We hope that when Indians and Pakistanis see others engaging in such negotiations they may decide come along.
Tubby
  1. Source: Department of State, Central Files, INCO–COTTON GATT. Confidential. Repeated to Karachi and New Delhi, and passed to the White House.↩
  2. Dated December 15. (Ibid., INCO–COTTON 4 GATT)↩
  3. Dated December 10. (Ibid., INCO–COTTON GATT)↩
  4. Details of the GATT Cotton Textiles Committee meetings are in TAGG 3678, December 9, and TAGG 3684 and TAGG 3685, both December 11. (All ibid.)↩