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MARKET IN 1952-64, THE BASE PERIOD FOR THE QUOTAS. THE PATTERN OF CATEGORISATION IS ALSO BECOMING INCREASINGLY OUT

OF DATE.:

(G) THE TEXTILE CYCLE IS EXPECTED TO TURN DOWNWARDS IN 1970, A YEAR IN WHICH IT WOULD HAVE BEEN EXTRAORDINARILY DIFFICULT FOR THE GOVERNMENT TO HAVE LET THINGS GO ON AS THEY ARE. (H) YOU SHOULD REITERATE THE PRESIDENT'S ASSURANCE THAT WE ARE

NOT SETTING A PRECEDENT FOR TARIFFS ON OTHER COMMONWEALTH

A PRODUCTS: COTTON TEXTILES ARE, BY INTERNATIONAL CONSENT, SPECIAL CASE. AT THE MEETINGS REFERRED TO IN PARAGRAPH 3, THIS POINT WILL BE STRONGLY STRESSED.

THE TEXTILE COUNCIL IS NOT JUST ANOTHER TRADE ASSOCIATION, IT IS A STATUTORY DEVELOPMENT COUNCIL SET UP UNDER THE INDUSTRIAL REORGANISATION AND DEVELOPMENT ACT, 1947, TO INCREASE THE PRODUCTIVITY AND EFFICIENCY OF THE INDUSTRY. IT HAS AN INDEPENDENT CHAIRMAN, SIR JAMES STEEL OF THE STEEL GROUP, AND TWO ECONOMISTS AS INDEPENDENT MEMBERS, INCLUDING ONE (MRS, MILES) WHO HAS WORKED AT THE U.N. ON PROBLEMS OF DEVELOPING COUNTRIES. THE COUNCIL RECOMMENDATIONS ON THE TARIFF WAS UNANIMOUS.

(J) DUTY FREE ENTRY FOR COTTON TEXTILES WILL CONTINUE TO APPLY

TO EFTA AND THE IRISH REPUBLIC BECAUSE OF OUR FREE TRADE AREA COMMITMENTS TO THOSE COUNTRIES.

TO INDIA ONLY.

WE BELIEVE THAT INDIAN TRADE HAS BEEN HEAVILY PROTECTED BY THE QUOTAS AND THAT HER EXPORTS MAY SUFFER AS A RESULT OF THE IMPOSITION OF THE TARIFF. PARAGRAPH 8 OF THE STATEMENT MAKES IT CLEAR THAT WE SHALL BE PREPARED TO TAKE THIS INTO ACCOUNT IN DETERMINING THE

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