particularly in countries like India which fear for their
competitiveness when subject to import duties. It is, I
believe, most important to do all we can to launch the new
system next year in as favourable circumstances as possible.
It would be particularly unfortunate if, because of a temporary
and avoidable upsurge in imports, we came under pressure to
restore the quotas (as we have said we would on certain imports
if total imports of particular products rose significantly and
caused disruption to the market for those particular products);
it would be embarrassing to reject such a request from Lancashire
if the conditions of the safeguard assurance appeared to exist,
yet to give way would negate our object of fostering the
development of a cotton textile industry able to live with
tariff protection alone, besides damaging the trade interesta of
developing countries. Apart from these domestic considerations,
we owe it to importers and to the overseas suppliers to
achieve as orderly
can.
a changeover from quotas to tariffs as we
We face some difficult negotiations with some of them this
year, especially with India who must be persuaded to waive her
trade agreement right to duty-free entry, before we can intro-
duce the tariff. It would materially ease such negotiations
if we were able to offer the countries concerned this
· concession.
I am copying this letter to