Registry No.

SECURI

CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted, Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

SUBMISSION

Type 1 +

To:-

From

Doaas K. Hale

Telephone No. & Ext.

Department

BRITISH TEXTILE POLICY

PROBLEM

Whether we should approve the proposal in

from

EPC (71) that in addition to implementing our

long announced policy or substit )ting tariffa for

quotae--for imports of cotton textiles) on 1 January 1972

we should, retain the present system of quotas

be regulated

in addition to the tariffs.

ARGUMENT

.2.

proposed

The DTI case for proposing an increased

protectionist policy is based on two three-7

premises:

(1)

complaints from small but vociferous

sections of the cotton and allied textile

tariff

}

(2)

industry in Lancashire that the new

above policy will provide too little protection

and add to the unemployment problem in

Lancashire;

the likely re-imposition of some quantitive

restrictions on our cotton textile imports

in 1973 following our joining the EEC; d

(3) the risk of diversion of man-made libres

(umf) because of the new American restrictions

or Asian suppliers.

A A LLINKED

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