world at large and, more particularly, in securing the agreement

of our traditional Commonwealth suppliers, notably Hong Kong

and India, to carry on with their present export control

arrangements

in fact, while Hong Kong will probably agree,

under protest, to continue to co-operate it is unlikely that we

will ever get the Indians to agree to anything. Nevertheless,

on balance I am satisfied that despite all these difficulties,

which are not inconsiderable, we must do what we can to contain

imports in 1972, not only as an acknowledgement of our

awareness of Lancashire's problems in the present conditions of

unemployment but also to ease the move towards adaptation of

our policies with those of the Community. In presenting our

change of policy, we shall have to say that the modalities of

entry into the EEC and high unemployment have created a situation

rather different from that foreseen when the original decisions

about tariffs and no quotas were made the UK cannot in these

new circumstances sustain a liberal textile import policy when

the rest of the world does not and we would still be taking a

far higher proportion of low-cost textile imports than any other

major industrial country.

-

The debate on the Affirmative Resolution introducing the

Commonwealth textile tariff will be held in the week beginning

29 November. I would want to announce the retention of quotas

during this debate. I should therefore be glad if you and my

colleagues would indicate within the next few days that you

accept my proposals and that I have your agreement to proceed with

the imposition of the tariff and the retention of quotas from

1 January 1972.

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