We recognise that the retention of quotas represents a sharp reversal of policy in the face of many public and private assurances to the contrary. We can only defend this action by arguing that circumstances have changed to the extent that EDC entry and gloomier prospects for textile trade generally face us with an acute short-term problem for 1972 at a time when unemployment at home is unacceptably high. We can add that we shall continue to take a far higher quantity of imports from developing countries proportionately than any other major industrialised country. We can also say that the original statement outlining the tariff policy included a reservation that it was subject to any modifications that might be required if we joined the DEC. We believe that some countries which have relatively high quotas and some reason to fear increased competition might come to see some advantage in the retention of quotas but we do not expect this view to emerge immediately.
We cannot accept
any argument that we should reverse the decision to introduce the new tariff on 1 January 1972 nor can we consider the possibility of including textiles in our UNCTAD offer at least until after entry into the EEC.