Mr Renwick

TEXTILE IMPORT POLICY

CONFIDENTIAL

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1. You agreed with Mr Keeble that the Minister of State might

be prepared to raise this subject at today's meeting of the

Economic Policy Committee.

BACKGROUND

2. A Working Party of DTI officials has been considering UK

textile import policy for some weeks. We understand that at a

meeting yesterday evening, DTI Ministers decided to put to

their colleagues the proposal that we should maintain the

existing quota system for cotton textiles as well as introducing,

from 1 January 1972, the proposed tariffs. We understand that

the Secretary of State for Trade and Industry will be writing

to his colleagues to propose the new policy.

3. We do not consider that a proposal of this kind which, if

Ministers were to accept that such a change should be made,

would involve a variety of problems affecting our relations with

overseas countries could be satisfactorily dealt with in

correspondence as the DTI now seem to suggest.

4. For these reasons, the Minister of State might wish to say

today that he understands that DTI Ministers are about to put

specific proposals to their colleagues and that he hopes that

these proposals can be discussed at an early meeting of the EPC.

18 November 1971

FE J Hale

Commodities Department

CONFIDENTIAL

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