CONFIDENTIAL
12 We believe that the decision should be maintained to
give relief from the new duty early in 1972 to shipments
from restricted countries made before the end of 1971.
This was designed to spread the last duty-free shipments
more evenly and failure to implement it would be another
breach of faith.
CONCLUSION
13
Circumstances have forced an unenviable choice upon
us. To be certain of protecting our domestic industry
against any greater quantity of imports in 1972 we must
adopt either Option 3 or 4 with 4 giving greater protection
than 3. But to adopt either will involve a straight breach
of our international obligations and acute embarrassment
with the supplying countries concerned. Anti-marketeers
may also seize on this as an illustration of the way in which
our commercial policy will be distorted by entry into the
EEC. Moreover, since both options would continue to allow
at least the current level of imports, neither would be of
much help to any Lancashire firm for which the tariff alone
proves to give too little protection. They would also
expose us to criticism of a last-minute change in Government
policy, though in the circumstances there is perhaps not a
great risk of this in Parliament.
14 The Secretary of State said that he will seek the
agreement of his colleagues to any change in the present
textile import policy. If the Government in to be in a
position to announce any changes during the debate on the
8