CONFIDENZI ALA
13
Ag
State monopoly to increase the protection afforded to the dozestic industry.
21 I would therefore urge my colleagues to accept the Textile Council's proposal that the quotas should be replaced by a tariff. I recognise that a tariff would almost certainly reduce imports from India substantially. I consider that it would be reasonable
to offset at least part of the loss through additional aid and I do not believe that agreement to compensation in this special case necd constitute a precedent. I also recognise that, if the tariff solution were to be adopted, quotas on individual categories of cotton textiles from particular sources could be re-imposed only in proved cases cf market disruption. Textile Council accept this.
The
23
If my colleagues agree that a tariff should be imposed on imports of cution textiles from the Commonwealth, I would wish to announce this docision without delay in order to dispel uncertainty in the industry. The Board of Trade would then need to consider with the Departments concerned how the discussions? with the Commonwealth Governments concerned should be pressed to a conclusion.
CONFIDENTIAL
July, 1969.