quotas. (We would not, of course, limit goods shipped after 1 January 1972). Without such an arrangement, quotas would effectively break down some months before the end of this year, and the peak of the unrestricted imports would occur two months or so earlier than if the quotas were enforced to the end;
This
b. by giving the duty relief which I am proposing.
would spread arrivals more evenly by removing the in- centive to Commonwealth shippers to bring forward all their quota deliveries into 1971 (admittedly, it would bring forward into 1972 arrivals from the Commonwealth which will coincide with increased imports from Taiwan and Korea, but we think this is the lesser evil). Course b. would also provide some further incentive for the Commonwealth Governments concerned to accept the tiresome extension of export certification and import licensing into the first quarter of next year, which would be necessary to achieve course a. Hong Kong has already asked for this duty relief. The Commonwealth countries have, of course, an interest in avoiding unnecessary disturbances to our market.
We can implement course a. under existing powers, but I am udvised that we cannot achieve course b. without taking powers; and a. without b. would be considerably less effective and less acceptable to the developing countries in the Commonwealth preference area. The bunching of imports may coincide with a period when the market demand has not fully revived, and we could certainly expect crticles from Lancashire if we had not done all we could to smooth the trans- ition. We are already being urged by the British import trade to take measures along the lines I am suggesting.
In these circumstances, I hope that you will agree to including in the Finance Bill what I hope would be a non-controversial provision. The coming year is likely in any case to be a testing time for our policies towards our cotton textile industry. We, and the Labour Government before us, both accepted the Textile Council's bold recommendation in 1969 that the development of a modem end vil v industry would bost bo fostered by abolishing quantitative impotr restrictions and imposing a moderate tariff on traditionally duty- free imports of cotton textiles from the Commonwealth. I believe
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2.