in imports of cotton textiles was expected in 1971 and early 1972
accompanying the change in import policy, but there is evidence that
price factors have played a prominent part in stimulating imports as
opposed to home output. Overseas competitors appear to have controlled
cost increases where UK producers have not. The imposition of the
tariff on imports of cotton textiles from the Commonwealth Preference
Area should, at least for a time, partly correct this imbalance
(except in the case of Hong Kong, which is expected to absorb most of
the tariff by paring its present large profit margins). Other
special factors, however, have to be taken into account which are dealt
with in the next section.
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