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The financial Times
Guidelines for
textiles
EVEN ir M. Anthony Cros, land, President of the Bourd of Frade, had wanted to avoid becoming involved in helping to decide the future shape of the cotton textile industry, his hand would have been forced by Courtauldy oddly-timed bid for English Calico, one of its leid. ing rivals. At the time Mr. Crosbund was still mulling over an adverse report from the Monopolies Commission Courtaulds' extensive textile interests. The bid for English Calico raised both the prospect of a radical alteration" in the industry's Structure and the threat of vigorous retaliatory action by ICI and other fibre producers.
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Mr. Crosland reacted by ask- ing Courtaulds to withdraw its bid pending Ministerial review of the industry's strues fure in the light of a major pro ductivity and elliciency report from the Textile Council. Both the report and the review have now been completed, and yester- day Mr. Crosland gave what were in effect his guidelines for the next phase of rationalisation
in cotton textiles.
Consolidation needed
Bextils Council Rei fol-Fell.
dish Calico merger had almost certainly to be ruled out. While it would have made industrial sense for Courtaulds, it would have created a grouping far too large in spinning, warp knit ting, and printing for example, for # reasonable competitive balance to be preserved. Wiule, too, Viyella. Carrington and Dewhurst and Coats Patons may feel that it is somewhat unfair to be included in the morator. ium as well as Courtaulds and English Calico, it is also true. that further mergers between the big live would probably take concentration too far.
|
SHE PROGRES Petroleum's at vade the US and is dealings, wi General Jolin/Mitch ment of Justice, af lowed with / almos
interest in U.S. corporate cifeles as pany's low hend Britannic House, and the senior execu U.S. companies ki there is slightë that BP siers from
tion because it is' owned concern, th U.S expansion of interests in Europ jeopardised.
As the most imprį so far seen to “TE Challenge,"
BP something ofļa testi Between them the big five | good intentions. account for roughly half of all For several years' spinning and finishing opera- and businessmen ha tions, as measured by employing Europeans that ment and a third or almost a considering ways third of the weaving and con-
U.S. companies fri verting sectors. The next twenty Europe. They shot companies in order of size, | turn inveft in the on the other hand, have only a the desire of the L quarter of spinning and a sixth | ment to qucouage, to a seventh of weaving, finish | such investment," ing and converting. The main | Johnson [ Garrett. need now is for further concen-Industrial Developi tration among medium and U.S. Embassy in P small-sized companies, rather than right at the top.
an Quotas and tariffs
been charged with sibility for encou Europeal compani Tish US. Joperations Colebrook, ching Pfizer Group ih & vice-chairman of national, recently companies" to leat Not! invasion of which will benef World and the i
No evide
The main feature of these is to be
standstill-for a unstated period on further
But will this happen 7 Mr. mergers DOL only between Courtaulds and English Calico Crosland's statement has cleared but also among any of the one element of uncertainty
which has been industry's five largest groups. An
bedevilling overseas bid for any one of the forward planning. But until he live is also to be discouraged.makes his promised statement on quota and tarill policy in the autumn no company will be able to make firm plans. The future The need now, Mr. Crosland shape of quotas and tariff's after stated, is for consolidation. The
1970 are particularly close to the big live are to concentrate on hearts of smaller companies sorting out their recent acquisi- which have been hit by the tions and achieving close com growth of duty-free and other This attitude ij mercial and technical links flow cost imports,
contrast with that! between the various stages of Moreover, the live Largest | Representative Phi production and marketing. companies must inevitably be chairman of the Meanwhile, further acquisitions the main instrument, for further resentalives' Judici nationalration in the industry. | tee. When he first While Mr. Crondand hues in posed a sundvall OTE then teorumiation in one direction. He ruut henvily dependant
ver espelutle Tu Poncentration in the test of the
medy. Mr. Credand hus
of smaller companies and cupa- vity swopping SELYEMCHES between the big five will be per mitted, except where they create
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introdly memoqloly coali 195 And hofft Be budu dind Reorguisition Computation mid The Board of Trade's recently appointed consultant, wil do what they can to foster rationu- lisation within the rest of the industry.
Up tom point, these proposals are semable. A Courtaulds 4 ng.
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propofed merper and Standard O wined that it foreign pulley pat
bas si tal inter int
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mied to hold the ring fairly by tuinly no
company in the
making les stand till order equally applicable to all live leading groups, but he will not find
it easy to maintain this balanes in the future.
39
RECEIVED IN RAGETRY No.51.
So far it can be
is no evidenceftir 7 JUL 1969
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