Israelis in Washington Seek to Avert Ban on Cotton Yarn Import to U.S.

Israeli officials here today initiated talks with Washington authorities with a view to preventing a possible embargo on the importation of Israeli cotton yarn to the United States as a result of the new U.S. policy to curtail cotton import from abroad.

The Department of Commerce said today, no freeze has as yet been imposed on Israeli cotton yarn exports to the United States. The Department noted that, in fiscal 1961, Israel exported 3,200,000 square yards of textiles to the United States. However, the effect upon Israel’s cotton yarn industry may arise from Congressional attempts to provide relief from foreign competition to the American textile industry.

While no official action has been taken as yet, a joint Senate-House conference committee has reported out legislation that would empower the Executive Branch to take whatever steps may be necessary to reduce foreign import quotas. The legislation is designed to prevent “circumvention or frustration” of an agreement made under the Geneva Textile Cotton Arrangement of last July by countries that are not members of the arrangement. Israel is not a member of the Geneva Arrangement.

Israel, reportedly, has hundreds of tons of manufactured textiles awaiting shipment to the United States. Half of Israel’s output in this field is exported to the United States.

Israeli sources here felt today that there was a good possibility that the legislation with its serious effects on Israel could be passed. However, they held out hopes for relief as a result of the current negotiations. At worst, it was pointed out, if the legislation is enacted, and the embargo imposed, such an embargo might last only until next autumn, when the U.S. cotton yarn import quotas, to be set on a country-by-country basis, would be reviewed.