Statement by the President on the Problems of the Textile Industry.

I KNOW the significant role that textiles have played in the economic life of New England and I know of the difficulties this industry has encountered during the past few years. Fortunately, New England could have no better spokesman in Washington than Senator Pastore (Senator Muskie). He has been untiring in bringing home to all of us the very real problems faced by New England textiles. I can assure you that there is no major official in this administration who has not been made fully aware of the hardships created every time a mill is shut down or forced to operate on part time. We have worked hard at this problem and we will continue to do so.

President Kennedy, as a son of New England, knew these problems well. In May 1961, as you recall, he instituted a seven point program for the textile industry. Under that program, Government-sponsored research for the industry has been launched. We have provided accelerated tax amortization for the textile industry even ahead of similar benefits for other industries. This year I signed legislation that is greatly helping out cotton textile mills by permitting them to buy cotton at world prices for the first time since 1956.

Among our textile problems has, of course, been the increase of imports. This administration has worked out a solution for the import problems of the cotton textile industry. It developed a long-term cotton textile arrangement. Under the administration of this arrangement, cotton textile imports have been stabilized--and we intend to continue keeping imports from disrupting the market.

All of these measures have contributed to restoring the prosperity of the textile industry, which, as a whole, can look forward to greater prosperity in the future.

I say with a great deal of pride that this administration has done more for the textile industry than any administration in history, and our efforts have not been confined merely to cotton textiles. We have stemmed the tide of foreign wool fabrics coming through the Virgin Islands by administrative action. This alone reduced imports 10 million square yards a year.

We have closed tariff loopholes which permitted some woolen textiles to enter after paying only half the duty they should pay. The Senate Finance Committee has just approved legislation which would close another loophole affecting tariffs on certain types of wool products. We strongly support this legislation.

But the wool textile industry continues to be faced with problems, particularly in New England. In the past 10 years imports have soared from less than 5 percent to 20 percent of American consumption, with particular concentration in worsteds.

The administration has made and will continue to make vigorous efforts to solve this problem. I share with our late, beloved President Kennedy the view that wool textile and apparel imports must be kept at reasonable levels. We have been trying to work out effective arrangements with other wool textile-producing countries. Two missions have been sent abroad for this purpose in recent months. Thus far a multination meeting has not been convened. But we intend to continue our efforts vigorously. I can assure you that we shall work hard at this problem. I consider it essential that the wool textile industry be restored to good health.