the The recommendations to the Govorament
mainly concerned future policy on imports and
financial assistance to encourage re-equipment.
5.
The main recommendation on import policy
was that the present quota system should be
replaced by a tariff on imports of cotton
textiles from the Commonwealth at a rate not
less than 85 per cent of the most-favoured-
note of nationjauties.
On cotton cloth, the main item
of trade, this would mean a Commonwealth duty
of 15 per cent. The Council considered that
a tariff would be a more appropriate solution
for the industry and for the country than quotas.
The margin of protection would be both stable
and predictable, enabling the industry to plan
ahead in confidence. Quotas, on the other
hand, were likely to prove even less effective
in future than hitherto and would not give firms
in the industry an incentive to undertake the
investment required to make the industry more
competitive.
The
Council also recommended
Study
/that
L