CONFIDENTIAL

13. In replying to the BTEA, Sir John Eden

reaffirmed the position of the Government that

"if evidence was produced after the new import

regime had come into effect that real damage

was being done, whether to the industry as a

whole or to some significant part of it, the

Government would certainly consider what could

be done to remedy the situation". He added

that at present it was not possible to modify

Government policy on the lines suggested by the

BTEA. However, Sir John considered that it

was essential for officials and the industry

to study the evidence and monitor the important

changes taking place in the industry; thus

there could be a mutually understood basis for

any subsequent measures.

Subsequent consideration by the DTI

14. At the meeting of the Ministerial 'Committee

on the Approach to Europe on 25 October 1971,

the Secretary of State for Trade and Industry

undertook to examine again the proposed tariff

policy. The DTI consider that the following

new factors have to be taken into account in

this examination:-

(i) greater social hardship which has arisen because the slimming of the industry is occur-

ring when unemployment levels are high; and it

is difficult to obtain alternative employment;

i) forestalling, and build up of stocks,

could take place in 1972 when it is know that

the Government does not intend to seek deroga-

tion from the BBC agreements when we join the

CONFIDENTIAL

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