12
{
to the UK market will be of value to overseas
suppliers as well as to the UK industry.
Z India, Hong Kong, Pakistan In choosing
to maintain existing restrictions the British Government
have also been influenced by the view that this is
likely to benefit traditional suppliers in 1972; and
whilst the British Government cannot of course antici-
pate the patterns' of restrictions applying to the UK
which the European Commission will negotiate for the
period after 1 January 1973, it seems reasonable to
expect the pattern to be determined at least in part
by actual trade in 1972. Despite unemployment in the
UK cotton textile industry the quotas for 1972 willbe
increased by 1% as in earlier years.
to. The British Government recognise that the Government of
India, Hong-Kong, Pakistan would have wished, if
quantitative restrictions had to be retained, for the
new tariff to have been deferred. Bu, for over 2 years
the UK textile industry has planned its investment. and
marketing in the expectation of price and prorit levels
related to the tariff, and quotas alone would be no
substitute for that. The British Government continue
to believe that efficient producers will be able το
sell profitably in the UK over the new tariff and the
restrictions now being retained will pormit a level.
allowed
of cotton textile imports far higher than that AK ON
vo-enter major industrial countries, all of whom have
long since applied both quota and tariff protection.
3