1
Mr Renwick
COTTON TEXTILES
Min Dadds won Hazn
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The Land
In Sutherland
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M. BA
- Dir Lake
This is an important question. We have spent a
considerable time negotiating with overseas suppliers to
'move from a quota system to a tariff as a means of regulating
imports of cotton textiles. It is now proposed that instead of abolishing the quota system, we should super-
impose it on the tariffs. Moreover, it is proposed that this decision should be announced next week, thus leaving no time for effective prior consultation with the overseas suppliers to some of whom at least we had previously mado clear statements of our intention to remove the quotas.
2. It is not a question whether Lancashire's interests ·
should take precedence over that of India or Hong Kong,
'If it were,
the choice would be easy. It is simply that we have made certain statements to overseas suppliers about
future policy and cannot ignore these. Moreover, it is
very questionable whether the imposition of quotas as
proposed would give any material help to Lancashire.
3. I therefore agree with Mr Hale that the right course is to institute the tariff policy in place of quotas as
originally proposed. At the same time we should keep a
close eye on the development of the market and be ready
to take further protective action, if circumstances
require it and after proper consultation with the overseas suppliers concerned,
23 November 1971
·HE C Keeble