CONFIDENTIAL
4
12. IN ADDITION, THE IRC
WHO ARE WORKING VERY CLOSELY
WITH THE TWO CONSULTANTS I HAVE APPOINTED AND WITH THE
B.O.T. MAY BE ABLE TO HELP WITH MODERNISATION AND RE-EQUIPMENT IN
A NUMBER OF CASES WHERE MERGERS BETWEEN MEDIUM AND SMALL-SIZED
FIRMS ARE CONCERNED.
13. I REGARD THE PROPOSAL TO REPLACE THE QUOTAS BY A TARIFF AS
AN ESSENTIAL PART OF A DEVELOPING POLICY DESIGNED TO HELP
THE INDUSTRY SURVIVE IN A COMPETITIVE INTERNATIONAL
ENVIRONMENT, THE DECISION TO CALL A HALT TO FURTHER LARGE
SCALE MERGERS IN THE INDUSTRY SHOULD GIVE THE FIRMS CONCERNED A
PERIOD OF STABILITY IN WHICH TO PROCEED WITH THE NECESSARY
INTERNAL REORGANISATION AND INTEGRATION. THE TWO CONSULTANTS
I HAVE APPOINTED WILL ADVISE ME ON WHAT CAN BE DONE TO
HELP THE MEDIUM AND SMALL SIZED FIRMS DEVELOP
CLOSER TECHNICAL AND COMMERCIAL LINKS. ALL CONCERNED CAN NOW
MAKE A FRESH START. SUCCESSIVE GOVERNMENTS HAVE FAILED
TO GET TO GRIPS WITH THE INDUSTRY'S PROBLEMS AND PLAY THEIR PART IN DEVELOPING SEUSIBLE LONG-TERM POLICIES, THE INDUSTRY, TOO, HAS FAILED TO ADJUST TO CHANGING CIRCUMSTANCES.
THE INTRODUCTION OF A TARIFF ON IMPORTS FROM THE COMMONWEALTH
PREFERENCE AREAS WOULD GIVE THE INDUSTRY FOR THE FIRST TIME
A STABLE AND PREDICTABLE LEVEL OF PROTECTION AND IF EMPLOYERS
AND EMPLOYEES PLAY THEIR PART BY INCREASING THE RATE OF
RE-EQUIPMENT, BY MOVING RAPIDLY TOWARDS MULTI-SHIFT SYSTEMS
OF WORKING AND BY DEVELOPING CLOSER TECHNICAL AND COMMERCIAL LINKS AS RECOMMENDED BY THE TEXTILE COUNCIL, THE LANCASHIRE
TEXTILE INDUSTRY SHOULD ONCE AGAIN TAKE ITS PLACE IN THE
FOREFRONT OF BRITISH INDUSTRY.
STEWART
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES D.
GGGGG
CONFIDENTIAL
і