CONFIDENTIAL
3
LE
The decline in production has been accompanied by an increase in total imports of cotton and man-made fibre cloth and cotton made-ups from an estimated 500 m. sq, yds. in 1950 to 1,114 m. sq. yds. in 1968. Retained imports of cotton cloth and made-ups in 1968 amount d to 853 m. sq. yds., or 53 per cent of consumption, and of the total some two-thirds consisted of importe from developing countries. The proportion imported duty-free was also very high: 63 per cent from the Commonwealth and 15 per cent from Finefta and the Irish Republic. Only 14 per cent of. consumption-i.e. rather more than one-quarter of total imports came from the developed countries and no less than one-third of this originated in Canada and the Irish Republic.
5.
There have been very considerable changes in the industry in the past two years. The number of independent firms has fallen by nearly half and there have been major changes in structure and organisation. The big groups now control nearly half the output; and although a good deal more investment is required to bring it up to continental standards of efficiency, the industry is now in a much stronger competitive position than it was a few years ago as a result of the considerable sung which have been spent on modernisation. Production and marketing methods have also been streamlined. These improvements have convinced the industry that it can compete effectively behind a 15 per cent tariff.
inconveivable four years ago.
The present tariff position
6.
This was
Textiles and clothing are at present admitted duty-free when imported from the Commonwealth unless they contain 5 per cent or
CONFIDENTIAL
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