105.
9
MEETING BETWEEN THE PRIME MINISTER, THE SECRETARY OF STATE AND MR DAVIES ON 29 NOVEMBER
COTTON TEXTILES
While imports in cotton textiles have risen in 1971
(in comparison with 1970) the increases have been less than,
and within, the limits of the current quota arrangements which
the DTI seek to extend to 1972. Bunching and upsurge was
expected.
Indeed this was the justification for including in
the Finance Bill relief from the tariff for the first three months
of 1972.
2. We cannot therefore argue to overseas suppliers that we
are taking action in a situation of proved disruption. They
will not understand why our need to adapt to Community regulations
in 1973 should be regarded as the excuse for anticipating this
action by twelve months. They will argue that we should do what
we said we would do in re-affirming our intentions to rely on
tariffs alone in 1972 (the relevant extract of the statement is
annexed), namely 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"; as recently as 11 October
Sir John Eden re-affirmed this decision to the British Textile
Employers Association.
3. The only course which completely keeps faith with overseas
governments would be to monitor the volume and pattern of imports
in 1972 from countries now subject to restrictions by retaining
import licencing against them. The quantities would not initially
CONFIDENTIAL