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MEMORANDUM THE WHITE HOUSE SECRET INFORMATION WASHINGTON September 21, 1971 MEMORANDUM FOR THE PRESIDENT FROM: PETER G. PETERSON OR SUBJECT: Progress Report -- Textiles THE PRESIDENT HAS SEEN At the August 15 Camp David meeting, you will recall deciding that if we could not get a voluntary textile deal by October 15th, you would then im- pose a settlement under the Emergency Banking Act Amendment of the Trading with the Enemy Act. Accordingly, the preparatory Balance of Payments Emergency Proclamation was made on August 16. Since then the following steps have been taken: 1. Harry Dent and I have met several times with the industry and without suggesting a specific solution, I've told them we will do everything possible to get voluntary deals, but were confident that we would get a "satisfactory answer" to the problem by mid- October. The industry is extremely pleased with your interest and your entire New Economic Program. 2. Per your instructions, I've had another very cordial meeting with Wilbur Mills expressing your strong desire to work closely with him on this problem. I also indicated that while your strong wish was for a voluntary agreement, you felt that it may be necessary to take unilateral action. Again, I did not specify what that action might be, but he is so sophisticated in his knowledge of the field, I can't believe he is not familiar with the options. He said you would have no problem with him on whatever you decide to do. 3. Jurich is now in the Far East and my instructions to him are as follows: (1) Present a voluntary package with higher growth rates but still within the guidelines of acceptability to the industry; (2) Present another package with much less growth and indicate that if a unilateral decision must be made, it will be at this lower growth level. He is to urge them to accept the voluntary deal. DECLASSIFIED SECRET E.O. 12958, Sect. 3.6 By AG NARA, Date 12/16/97