36.
Lancashire too would no doubt prefer a global ceiling to a monitor-
ing system, although even the former would be a much weaker form of
protection than it is now seeking. If Ministers decide that the
global solution is the one to be pursued, they should do so in
recognition of the fact that they will gain small thanks from the less
efficient sectors of the industry which have been acting as a pressure
group; that firms and workers will continue to be forced out of the
industry throughout 1972; and that the UK will come under considerable
criticism internationally for breach of faith (particularly from the
efficient producers who stood to gain most from complete liberalisation).
Nevertheless, despite all these disadvantages, if it is decided that
positive action in some form or other must be taken, a global solution
appears to be the one which holds the balance best between the various
conflicting interests.
B7.
Two further points will need to be decided if it is agreed that
cotton textiles should be subject to some form of quantitative control
in 1972; on the liability for duty of CPA goods shipped under quota in 1971 but arriving in 1972; and on whether the 1972 arrangements
should include duty-free quotas.
38: On the first point, we recommend that the decision should stand to
give duty relief to restricted CPA goods which are in transit at the
turn of the year.
We told the countries concerned some months ago that
this concession would be made, thus enabling them to spread shipments
evenly over the full twelve months of 1972. Withdrawal of the
concession now, quite apart from tarnishing the UK's reputation still
further, might provoke some at least of the CPA developing countries
to discontinue the restraint on exports they are supposed to operate up
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