(i) there is no evidence that imports are the root cause

(ii)

of Lancashire's current problems;

to reverse our policy would breach the many undertakings given to overseas governments,

particularly in the developing Commonwealth;

(iii) we need not adapt to the EEC import régime until 1973. Interested geographical departments and the ODA agree with

these recommendations.

17. If the EPC accept these points, it would be possible in the Debate next week to confirm that if there were signs of disruption in our textile market due to imports we should

take immediate steps to look into the matter under the

existing disruption formula. If Ministers were asked in the

Debate what our policy would be within the EEC, we should have to confirm that we shall not seek derogation from the

EEC arrangements.

23 November 1971

Сс

Private Secretary Mr Tickell

Mr Goodenough

Mr Logan

Mr Bottomley

Sir L Monson

Sir S Tomlinsọn

Mr Robinson Mr Wilford

На

HE J Hale

Commodities Department

CONFIDENTIAL

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