2. U.K.Textile Council Report
U.K.Textile
1
This report (published in April) has recommended the abandonment of quota restrictions on cotton textile imports into the U.K. in return for the withdrawal of duty-free entry for imports from the Commonwealth and the substitution of a tariff of 85% of the MFN rate. British industry considers it needs a 30% swing in its favour to become competitive with Commonwealth
Mater
suppliers to be achieved as to 15% by tariff and 15% by improved efficiency and productivity through continuing rationalisation. The latter element is likely to take time to achieve (1971 has been mentioned as a terminal date) and it is therefore recommended that there should be a transitional period in which both tariff and quotas should operate. To guard against the possibility that thereafter the tariff alone might not be a sufficient measure of: protection for some sectors of the industry, it is further recommended that we retain the right to reimpose quantitative restrictions in cases where rising imports cause serious injury to any sector of the industry)
This recommendation is under inter-departmental consideration at the present time and the President of the Board of Trade is
pressing strongly for its adoption before the Summer Recess, notwithstanding the serious consequences it might have for Common- wealth relations and the preference system and for our international posture in such contexts as the UNCTAD scheme for generalised preferences in favour of developing countries and our entry into
EEC.
So far as the Association is concerned we should make it clear that this is a recommendation which HMG will obviously have to consider seriously. I do not think we should reveal that this consideration is in progress - although I fear they have already had a hint of this from Mr. Dan Jones, MP (PPS to the President) who visited Hong Kong at Easter and at a recent lunch with the Association advised them in forthright terms to make their representations to the President, on Hong Kong's behalf, and certainly not later than the Summer Recess, I see no reason to
/ discourage
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