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CONFIDENTIAL
Man-made Fibres
20.
The DTI argue that imports do not present an
oon immediate threat; that diversion/any scale is
likely only from South Korea and Taiwan. If diversion
occurred, we could rely on using Article 19 of GATT
They conclude that no preventive action is necessary
now; and that our policy should continue to be that of
seeking informal consultations with the EEC on the
possibility of a joint response to the present
situation.
21.
This seems a reasonable assessment, particularly
as much of the increase in MMF imports in 1971 has
been from non low cost sources, Moreover the increase
in the sector reflects the technological change which
needs to be reflected in Lancashire. Greater protectio
for MMF will lessen the possibilities of increased
competitiveness in the more advanced sectors of
British industry.
EEC
22. A central considération in the DTI review, has been
that the methods for 1972 should be designed to merge
as easily as possible into the EEC quota arrangement s
with which we have to conform from 1.1.73.
23. While the Commission have expressed some unease
that our tariff policy will lead to an unacceptable
level of imports into Britain in 1972, none of the
options discussed in paragraph 15 above are likely to
cause difficulties in our relations with the EEC. This
is not surprising as the EEC are in very early stages
of considering a common textile policy. The present
restraint arrangements for imports into the EEC are
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