CONFIDENTIAL
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In theory, it would also no doubt be possible to devise measures of financial assistance to textile manufacturers to help their competitive position eg loans on easy terms for re-equipmont or for working capital. This could have wide implications
for industrial policy generally.
As for creating new jobs, the Government has already designated NË Lancashire as an intermediate area, and the prospects of attracting some new employment with the additional
assistance available under the Local Employment Acts should
not be too bad if there is a higher level of economic activity
nationally. It is difficult to see how, in the face of the
very substantial levels of enemployment in noat of the developmc.&
areas, the Government could justify increasing the priority
accorded to NE Lancashire. Nor, of course, could RE Lancashire
be made a development area without substantial pressure being
brought to bear on the Government to upgrade other intermediate
areas (eg the Yorkshire Coalfield) which are faced with problemo
of structural change over the next 5 years every bit as serious
as NE Lancashire.
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It would be possible for the Government to extend tho
NE Lanos intermediate area to include eg Rochdale and Oldham,
but to do this would bring the IA boundary virtually into
Manchester and make it vory difficult to resist claims from tho
North West for inclusion of the whole of the conurbation (und
probably the whole of the non-designated parts of the Region).
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