But we
tariff to the Commonwealth and to avoid double protection.
retained the right under the GATT Long Term Cotton Textile Arrange- ment to re-impose q r if (as the LTA allows) imports of particular
products disrupted the market, with the additional condition (not
required by the ITA) that total imports would also have vo increase
significantly; this was because we did not seek to preserve every
sector of the industry in its existing form or to retard the shift
of resources to more effective forms of production. The Govern-
ment also made available £10 million for re-equipment through the
IRC, facilities which were disappointingly under-used and wore
termingated earlier this year.
28/eliver
WHAT HAS HAPPENED?
3.
Since the forecasts in the Study UK consumption of cotton and allied products, home and imported (i.e. spun man-made fitre
and cotton yarn and woven man-made fibre and cotton cloth), fell
marginally in 1969 and 1970, recovering in the case of cloth in the
first half of 1971. UK production, which the Textile Council
foresaw as gently rising from 1963 onwards, also fell in 1970, but has not recovered (and indeed has fallen further) this year.
Imports fell in 1969 and 1970, both absolutely and as a share of
the market. But, unlike domestic production, imports of fabrics (though not of yarn) recovered sharply this year; and as a result are back to the 1968 share (38) of apparent consumption. The
figures of consumption, production and imports are summarised in
Tables 1 and 2.
2.
CONFIDENTIAL
14