MAL
A
PAKISTAN'S cotton textile industry is competitive and has managed
to take a large share of the global quotas. The change is likely
to benefit her. Concern has been expressed by the British textile
industry over the application of Pakistan's export bonus voucher
scheme to cotton textiles, on the grounds that this substantial
subsidy places the UK industry at a serious price disadvantage in
relation to imported Pakistan cotton textiles. This may be taken
up with the Pakistan Government in the near future. If it is
raised at the Finance Minis ters' Conference it should be said that
it would be a matter for negotiation through the appropriate
channels and is not suitable for discussion in any detail at the
Conference.
AUSTRALIA AND NEW ZEALAND
neither is affected to any extent (only £41,000 from Australia
and £15,000 from New Zealand in 1968). It has been explained to
them that textiles are a very difficult problem for the UK
requiring special treatment and that the tariff on textiles does
not set a precedent for tariffs on other Commonwealth products.
There will, however, be negotiations with regard to the
contractual commitment which we have to both these countries.
Commodities Department,
Foreign and Commonwealth Office.
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CONFIDENTIAL