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enteng the British market;
Comment Again, something of a "crystal ball" factor.
Possibly, if this occurred as DTI hint, there might be
1
a case for investigation of such price-cutting acti-
vities;
(iv) As a result of their restraint agreements on MMF
USA the
with the four Asian suppliers (Hong Kong, Japan, South
Korea and Taiwan) texx might switch production to
non-cotton textiles.
Comment This seems even more hypothetical than the
other factors. While it may be technically possible to
switch machinery from mmf to cotton textile manufacture,
there are considerable management problems (not least
that of effective cost) in so doing; moreover, the sum
of diversion in non-cotton and mmf can be no more than
the possible total unused capacity of the 4 Asian
suppliers as a
nesult of their
agreements with
ments with the USA.
Are the "new factors" sufficient to justify a reversal
now of the tariff policy; and if so, what method should
be adopted
·
15. The DTI consider in paragraph 27-33 of the current
draft submission various options:-
Cotton Textiles
(i) to proceed with the tariff policy;
(ii) to have tariffs and the existing quota system;
(iii)
to monitor imports from developing countries with
a view to taking further restrictive action if parti-
cular sectors came under pressure;
(iv) to continue specific licensing (from 31 March 1972
when it is due to end) for imports from developing
9
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/countries
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