CAL
14x1
Heads of EID/Planning Staff
HKD/FED?
TPD/S.European D. South Asian D./WED Economists
Legal Adviser
P-A-15/11
M L
En
IN
RSeparate copies_7
1
BRITISH TEXTILE POLICY
1. This morning's meeting in the DTI considered a draft submission to DTI Ministers (copy attached). A revised version of the draft, possibly together with a draft DTI Memorandum for the EPC, will be prepared either tomorrow or 10 November. DTI intend to submit to their Ministers this weekend and, in the light of their Ministers' reactions, for the subject to be
discussed at the EPC probably on 18 November.
2. As it seems most unlikely that the options in these revised drafts will differ significantly from those in the first draft of the DTI submission (which broadly followed the options discussed in my minute of 28 October), and bearing in mind the possibly limited time we should have to react, and to brief the Foreign Secretary after the week-end, I have prepared the attached draft submission to FCO Ministers, together with Speaking Notes for the EPC meeting. I realise this places you in the awkward position of commenting on hypothetical situations, and even more so receiving vast amounts of paper, but I should be grateful if you have any views to receive them by mid-day on 11 November. I will not bother you with the various supporting annexes (those on Hong Kong and India will have been cleared with the appropriate geographical departments) which generally draw on material which you have already received.
3. It is clear that Ministers will be faced with two basic questions: whether they are prepared to take the risk of a further deterioration in the position of Lancashire which, fairly or not, would be completely blamed on low cost imports or agreeing to actions to restrict imports in clear violation of the many undertakings that have been given since the original decision was taken to adopt a tariff policy on cotton textiles. The FCO objective is obviously to brief our Ministers to take the first of these courses. It is on this basis, with some refinements as far as a possible textile policy for the Ten is concerned, that the attached drafts have been prepared.
4.
We may need to consult you in the light of any DTI Memorandum to the EPC but I would hope this would be on relatively minor points rather than the major issues of policy which, as I have said above, are not likely to be different in the final DTI documents from the drafts now circulated.
8 November 1971
CC
Mr Bottomley
Mr Keeble
الله
HE J/Hale
CONFIDENTIAL
Commodities Department