Extract from
The Deny Keny Association
Bulletin No 42
เ
14
5 Maj 1869
THE TEXTILE COUNCIL'S REPORT.
Members will have seen fairly detailed referencim
The in the Press to the report of the Textile Council on the measures which should be taken to strengthen the British cotton and allied textile industry.
most important of these recommendations from the point of view of Hong Kong is that import quotas should be abolished and replaced by an import duty of about 15%. The United Kingdom should retain the same right as other major importing countries to use quantitative restrictions to combat market disruption, or in other special circumstances.
Since the major complaint of Lancashire is that the present level of imports is causing market disruption, it would appear that if imports should increase, despite the tariff, the disruption clause would be invoked so that in effect, the U.K. would have both tariff and quota protection.
The report comments that about 5% of the requirements of the U.K. domestic
It considera market are filled by imports, with 31% coming in free of duty.
that quotas are becoming increasingly ineffective owing to the inroads which are being made into the market for cotton goods by those made from artificial fibres. The report nevertheless forecasts that the decline in the import/ export balance has ended, and that an improvement is expected, that is, that
This is based on their expectation imports will decline and exports expand.
of improvements in the productivity and technical efficiency of British industry.
TRADE (Cont'd.)
THE TEXTILE COUNCIL'S REPORT (Cont'd.)
immufficient
Our feeling is that although the report is highly detailed, consideration has been given to many important potential consequences of its recommendations, some of which may indeed have been outside the terms of reference of the Textile Council. Among these are:-
8)
b)
c)
d)
The da "healty controlling imports from some low cost producer: which. re already paying import duty, such as China, Taiwan, South Kore and Japan.
The political disfavour which would result from the imposition of tariffs gainst imports from the Commonwealth, including dependent territories, whilst imports from Eire, Portugal and other Members of E.F.T.A. continue to be duty free.
The possible retaliation by Commonwealth countries by imposing duties on imports from the U.K. which now enjoy preferences.
The green light which this would give to protectionist elements in the U.S.A.
There is, of course,
Our feeling is that no early decision is likely. now also a further complication. This is the reduction in the opposition to the U.K. joining the Common Market, following on the resignation of the French President. If the U.K. becomes a Member of the E.E.C. it must be anticipated that Commonwealth Preference will go and imports be subject to the Common External Tariff. This would have the same effect as the Textile Council proposals, and would at the same time subject- bancashire to duty fren competition from the Six.
RECCIVED IN REGISTRY No. 51
14 MAY 1969
4KK6/548/8