CONFIDENTIAL
CYPHER/CAT.A.
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NO. 841
TO NEW DELHI
76
21 JULY 1969 (OD)
CONFIDENTIAL
NEUTRAL
ADDRESSED TO DELHI TELEGRAM NO 841 OF 21 JULY AND TO GOV GIBRALTAR
GOV BRITISH HONDURAS AND GOV HONG KONG (SECRET AND PERSONAL) AND
CERTAIN OTHER POSTS.
M.I.P.T. (NOT TO ALL)
FOLLOWING IS TEXT OF STATEMENT TO BE MADE BY PRESIDENT OF BOARD
OF TRADE IN PARLIAMENT ON 22 JULY.
BEGINS
THE GOVERNMENT HAVE NOW COMPLETED THEIR EXAMINATION OF THE TEXTILE COUNCIL'S REPORT ON COTTON AND ALLIED TEXTILES.
2. THE REPORT ADDRESSED A NUMBER OF RECOMMENDATIONS TO BOTH THE GOVERNMENT AND THE INDUSTRY, AND THESE HAVE BEEN THE SUBJECT OF CONTINUING CONSULTATIONS WITH THE COUNCIL.
3. THE RECOMMENDATIONS TO THE INDUSTRY CONCERNED IN PARTICULAR THE NEED TO INCREASE THE RATE OF RE-EQUIPMENT, TO EXTEND MULTI- SHIFT WORKING, AND TO DEVELOP CLOSER TECHNICAL AND COMMERCIAL LINKS BETWEEN THE DIFFERENT STAGES OF PRODUCTION AND MARKETING.
1 ATTACH GREAT IMPORTANCE TO THESE THREE REQUIREMENTS AND I AM
WORKING CLOSELY WITH THE TEXTILE COUNCIL ON THEIR IMPLEMENTATION.
4. THE MAIN RECOMMENDATIONS TO THE GOVERNMENT CONCERNED FUTURE
POLICY ON IMPORTS AND FINANCIAL ASSISTANCE TO ENCOURAGE RE-EQUIPMENT.
5. ON IMPORT POLICY, THE COUNCIL RECOMMENDED THAT THE PRESENT
QUOTA SYSTEM SHOULD BE REPLACED BY A TARIFF ON IMPORTS OF COTTON
TEXTILES FROM THE COMMONWEALTH PREFERENCE AREA AT A RATE NOT
LESS THAN 95 PER CENT OF THE MOST-FAVOURED-NATION DUTIES. ON
COTTON CLOTH, THE MAIN ITEM OF TRADE, THIS WOULD MEAN A DUTY OF
15 PER CENT. THE COUNCIL BELIEVE THAT A TARIFF WOULD BE A BETTER
SOLUTION BOTH FOR THE INDUSTRY AND THE COUNTRY THAN A CONTINUATION
96.
CONFIDENTIAL
/OF
RECEIVED IN
REGISTRY No. 51
23 JUL 1969
HKX6 348/8