fairly confidently about the future.
THE IMPORT PROSPECT
15 We always expected that the period of disturbance, during the transition from quotas to tariffs would last until about the middle of next year, while the trade adjusted to new market conditions and overseas suppliers held down under the present system, notably Pakistan, Korea and Taiwan, sought to increase their market share, very probably at the expose of less competitive overseas suppliers like India and Canada.
After that we thought the market would settle down to better...
and more stable prices thanks to the tariff. But we shall now
never know. Too much uncertainty has been added by the risk of forestalling during 1972 in cotton textiles once it becomes known that quantitative restrictions are likely to be reimposed
as a result of our having to accede to the EEC's restrictive agreements in 1973, and by the risk of diversion of non-cotton
textiles because of the new American restrictions.
16 The main options consistent with our international
obligations which the Department now has under consideration for dealing with these problems are:
Cotton Textiles
a
Continue to rely in 1972 on the Crosland Safeguard formula to deal with any disruptive rise in imports. This would be regarded by industry as inadequate at least until we were able to demonstrate by action that we could use the formula effectively, but we