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been the switch to knitted fabrics (much of it made outside
Lancashire) which both compete with traditional woven construc-
tions and tend to use filament rather than spun yarn. Total UK
production of cotton and man-made fibre fabrics in 1970 was in
fact rather higher than the Textile Council predicted, but with
knitted fabrics taking a larger share.
7. The rise in imports of cotton textiles this year (22 per
cent more cotton cloth and made-ups) has all along seemed inevit-
able as importers make the most of their last duty-freeefacilities
from the Commonwealth; it is uncertain how many of these imports
(which all figure in the "apparent consumption" statistics) are
actually being sold as distinct from stocked in the hope of
higher prices after the tariff comes in. Imports of woven man-
made fibre fabric, which are not restricted and will face no
tariff change next year, have also risen(by 33 per cent) this.
year. This increase, though a lot higher than the rise in the
previous years, is partly due to the continuing swing everywhere
towards man-made fibre. Apart from Hong Kong, our principal
suppliers of mm f fabric are, however, countries enjoying no
natural cost advantage over the UK and 4/5ths of this year's
increase has come from these sources, principally EFTA countries
but also the FEC and the US. It seems to be characteristic of the
"textile cycle" for imports to respond more quickly to a recovery
in demand than domestic production, but on past experience we
would expect to see the latter revive by mid-1972.
4.
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/8.