POSSIBLE COURSES OF ACTION ON COTTON TEXTILE IMPORTS
24. Earlier sections of this paper have set out some of the conflicting
· considerations which need to be taken into account in deciding whether to
stand firm on the announced intention of relying on tariff protection
alone after 1 January, 1972, unless the conditions of the Crosland
formula are met; or whether to put ourselves into a position to curb
any disruptive rise. The main points to emerge are that
(a) the Textile Council recognised, and the Government agreed,
that Lancashire's future particularly within an enlarged
Community was dependent on a radical contraction,
reorganisation and modernisation. If too much protection is
given to the industry, the restructuring process which is
now belatedy getting under way will be slowed down. On the
other hand, if imports are suddenly permitted to capture an
even larger proportion of our market, the orderly decline of
the industry could become a headlong rout, at a time when
alternative employment opportunities in Lancashire are
particularly scarce
www
(b) new problems (the failure of UK manufacturers to contain
prices like their overseas counterparts; the US restrictions
on non-cotton textile imports; the requirement to conform
to EEC quota arrangements on 1 January 1973) have recently
led us to take a more pessimistic view of the import
situation following liberalisation
(c) essentially, however, we are attempting to deal with a short-
term situation arising in the year 1972. On 1 January 1973,
we expect to be included within the scope of the Community
negotiated restraint arrangements.
1
16 -