NEW DELHI TELNO 1385 TO FCO
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10. THE IMPORTANCE OF THE COTTON TEXTILE INDUSTRY TO OUR
ECONOMY IS WELL KNOWN, THIS PROVIDES DIRECT EMPLOYMENT
TO 1 MILLION WORKERS AND INDIRECT EMPLOYMENT TO MANY MORE.
THE HEALTH OF THIS INDUSTRY IS, TO A CONSIDERABLE EXTENT,
DEPENDENT ON FAVOURABLE EXPORT OPPORTUNITIES ABROAD.
SINCE THE U.K. MARKET ACCOUNTS FOR NEARLY 35% OF OUR TOTAL
COTTON TEXTILE EXPORTS, A CLOSE RELATIONSHIP HAS DEVELOPED
BETWEEN INDIAN PRODUCTION, EXPORTS AND THE REQUIREMENTS
OF THE BRITISH MARKET. THE UNILATERAL ACTION NOW PROPOSED
BY THE U.K. GOVERNMENT WILL INVOLVE A STRUCTURAL CHANGE AND
ADD TO THE PROBLEMS WHICH FACE OUR TEXTILE INDUSTRY,
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11.
IN HIS STATEMENT THE PRESIDENT OF THE U.K. BOARD OF
TRADE HAS RECOGNISED THAT UNDER THE PROPOSED ARRANGEMENT,
INDIA WOULD BE ABLE TO EXPORT TO THE U.K. LESS THAT WHAT
WOULD HAVE BEEN POSSIBLE UNDER THE EXISTING SYSTEM, HE
HAS ADDED THAT WHEN THE TIME COMES HIS GOVERNMENT WOULD
TAKE THIS FACTOR INTO ACCOUNT IN DETERMINING THEIR AID
TO INDIA, I WOULD ONLY ADD THAT AID IS NO SUBSTITUTE FOR
TRADE.
12. THE BRITISH TEXTILE INDUSTRY MAY BE EXPERIENCING
SOME DIFFICULTIES IT IS, HOWEVER, SIGNIFICANT THAT
DURING THE LAST EIGHT YEARS, WHILE A NUMBER OF COUNTRIES
HAVE INCREASED THEIR TEXTILE EXPORTS SEVERAL FOLD, INDIAN
EXPORTS HAVE BEEN MORE OR LESS STEADY AND HAVE POSED NO
THREAT TO THE BRITISH TEXTILE INDUSTRY.
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