5 Secondly, the restraints on exports of

non-cotton textiles to the United States which

several Asian countries have felt it

necessary to accept, are likely to increase

the pressure of textile imports generally

on the UK market

1

6 Thirdly, the traditional textile areas in

Lancashire are facing a difficult employment

problem. Successive Governments, and I think,

most of the leaders of the cotton textile

industry, have accepted that the number of

mills and the number of employees must

continue to fall if a modern and prosperous

industry is to emerge.

remain of that belief.

The Government

The need for the

industry to modernise its plant and management

and streamline capacity is as great as ever.

I recognise that much hąs already been

achieved.

But the present rate of shrinkage

is taking place at a time when there are

not enough other jobs immediately available

for those made redundant by mill closures.

7 At a time when our market is peculiarly

vulnerable for the reasons I have subscribed,

the Government have come to the conclusion

that the policy previously announced of

reintroducing quantitative restrictions

selectively only if and when imports of

particular products cause disruption, is

unlikely to give the necessary stability of

market and employment conditions. In

/particular

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