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TP-17
- 7 -
SECRET
-- very briefly state that we regret the Italian decision,
but appreciate their explanation.
-- express our regret that the Warsaw talks did not take place
as scheduled, but note our continued interest in ameliorating
relations with Communist China.
International Monetary Issues
(The Italians have played a helpful role on our balance=of-payments
problem and in developing constructive international monetary
policies. They probably will not raise any of these issues in
detail, but to the extent they do, you may wish to draw on the
talking paper at Tab D.)
You may, however, wish:
-- to express warm appreciation to the Italians for their
outstanding cooperation.
Trade
(The Italians have supported liberalized trade and have been
helpful in the Kennedy Round, but they are concerned by some
U.S. actions, especially on wool and steel.)
The Italians will:
-- probably not raise these issues nor their concern about
limitations on wool and textile exports; but if they do
You may wish:
-- to reiterate our commitment to moving toward freer trade
rather than toward protection. (For additional background
and points, see the talking paper on trade at Tab E.)
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