Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

To:-

CONFIDENTIAL

Type 1 +

BRITISH TEXTILE POLICY

Problem

1.

From

Telephone No. & Ext.

Department

Whether any changes should be made in our textile

import policy as part of Government action to alleviate

the current difficulties for the British Textile

industry, and particularly in Lancashire.

Argument

2.

The main questions for consideration are:-

(a) to what extent do the current difficulties

flow from failure (meeting) the long-term

objectives of the Government for the industry

(b) Since the Government reaffirmed the tariff

policy in October 1970 and in 71 (provision

in the Finance Act for relief from the

tariff) have imports been at a level to

bring in doubt these reaffirmations of the

policy? A more detailed background note on

these questions is given in Annex A; the

principal points are:

The Textile Council Report; have it predictions been met?

3. The 1969 report was a blue print for the

restructuring of Lancashire industry into an entity

which would be fully competitive by European standards,

The proposal for tariffs in place of quotas was to`

establish more stable market conditions.

(145181) Da. 737490 750M 1,71 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

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