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TELNO 1394

FOREIGN AND COMMONWEALTH OFFICE

26 JUNE 1969

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ADDSD FCC TELNO 1394 OF 26 JUNE RFI DAR ES SALAAM AND

KAMPALA.

YOUR TELEGRAM TO NEW DELHI NO. 714:

TEXTILE COUNCIL REPORT ON U.K. COTTON AND ALLIED INDUSTRY,

KENYA EXPORTS HARDLY ANY COTTON FABRICS OUTSIDE EAST AND CENTRAL AFRICA, THOUGH PLANS ARE UNDER WAY FOR FURTHER DEVELOPING LOCAL TEXTILE INDUSTRY, THE MAIN OBJECTIVE IS IMPORT-SUBSTITUTION.

2. A START HAS BEEN MADE ON EXPORTING DYED AND PRINTED SYNTHETIC TEXTILES TO MARKETS OUTSIDE AFRICA, VALUE OF SUCH EXPORTS TO U.K. LAST YEAR WAS ABOUT k£2,500 (NONE IN 1967) AND KENYANS ARE LOCKING FOR A MODEST INCREASE THIS YEAR, THEY DO NOT REGARD THENSELVES AS COMPETITIVE WITH TRADITIONAL MASS SUPPLIERS, BUT SEEM HOPEFUL OF BUILDING UP A LIMITED MARKET IN BRITAIN FOR SPECIFICALLY AFRICAN DESIGNS.

3. THE DIRECT SHORT-TERM COMMERCIAL EFFECTS FOR KENYA OF AN IMPOSITION OF A U.K.TARIFF ON COMMONWEALTH COTTON AND ALLIED TEXTILES WOULD THUS BE VERY SMALL, NEVERTHELESS, THE FACT THAT THEY FELT IT NECESSARY TO PROTEST AT SUBJECTION TO IMPORT DEPOSIT

RG

IN.

SCHEME OF THEIR RELATIVELY INSIGNIFICANT EXPORTS TO U.K. 30 JUN 1969 OF SISAL ROPES AND TWINE SUGGESTS THEY WOULD NOT ACCEPT

HKK6/548/8

IT WITHOUT DEMUR, PARTICULARLY IF IT SEEMED LIKELY TO RESULT IN THEIR EXPORT HOPES IN NEIGHBOURING MARKETS BEING THREATENED BY INCREASED COMPETITION FROM OTHER COMMONWEALTH

PRODUCERS.

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