CONFIDENTIAL
the
To the world at large we would also appear to be going
back on our word and surrendering to protectionism;
Lancashire lobby would appear to have got their way (even more so if we also do something about origin marking), and
would be encouraged to ask for more. It is true that
Mr Crosland also said that our policy would be subject to ·
any modifications that might be required if we joined the
EEC, but this is not quite the same thing as taking action
beforehand. To all this we would have to reply that the
modalities of entry into the EEC and high unemployment have
created a situation rather different from that foreseen by
Mr Crosland; the UK cannot sustain a liberal textile impot
policy when the rest of the world does not und we would ... 1.
bo taking a far higher proportion of low-cost textile impe 60
than any other major industrial country.
7 Against this background we have four options. The
first option is to stick to the Crosland safeguard formula.
We would be keeping our word internationally, but it would
mean standing up to Lancashire's pressure and running the
not inconsiderable risks described in paragraph 5.
mhe
8 The second option would be to monitor the volume and
pattern of imports in 1972 from countries now subject to
restriction by retaining import licensing against them.
quantities would not initially be restrained, but we would
warn suppliers that if imports seriously threatened to ni. we would introduce quotas at once. Under this course
5