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b. would be considerably less effective as well as a lot less
acceptable to the developing countries in the Commonwealth
Preference Area. Unless we can implement them, we believe that
the upsurge could result in as much as eighteen months' supplies
of cotton textiles arriving in the British market in the twelve
months up to early 1972 instead of being spread out over
fifteen months or more.
Whilst we cannot, of course, be sure
that the upsurge would be as big as this, I believe that we
should be seriously vulnerable to criticism from Lancashire
if it were and we had not done all we could to anticipate it.
We are, moreover, already being urged by importers and the
Government of Hong Kong to take measures along the lines I am
suggesting in order to smooth the transition.
In these circumstances, I hope very much that you can
agree to including in the Bill what I hope would prove a non-
controversial provision. The coming year is likely in any
case to be a testing time for our policies towards the UK
cotton textile industry. We, and the Labour Government before
us, have both accepted the Textile Council's bold recommendation
in 1969 that the development of a modern and viable industry
would best be fostered by abolishing the decade-old system of
quantitative import restrictions and imposing a moderate
tariff on traditionally duty-free imports of cotton textiles
from Commonwealth sources. Although this proposal continues,
I believe, to enjoy the support of the more forward looking
elements in the industry, it has a good many critics in
Lancashire, and has aroused considerable opposition abroad,