Textile curbs
(C'onid from Page A which schonid bring the UK, into the FFC early in 1973.
In comparison with our competitors this makes us very well off indeed.
The belief in informed circles is that our economy will be much better placed in this stable situation.
Experts said last night that the new arrangements were less fraught with danger than the unknown waste of a quota-free system.
And the news is good for the Colony's man-made fibres concerns, many of which are facing an over-capacity headache as a result of the "voluntary restraints" recently conceded to the U.S.
There has been no hint that synthetic textile goods will come under the quota hammer.
All the signs are the Colony's versatile industry will now go in for some heavy switching to pick up the slack in the man- made field now that the incentive to export wholly cotton goods has been reduced.
Both types of products will now enter Britain, jumping an almost identical tariff fence.
A second, and perhaps a little optimistic, point being raised by those close to the industry yesterday was that when the Common Market countries begin to lean on Britain to reduce her imports (which could sell freely in an enlarged EEC) the Colony will have an established base figure for 1972 a good bargaining point on previous experience.
"If we have a figure as a quota we stand a much better chance than if we have no figure at all," an interested party said last night.
The thought is that the U.K, will continue to bat for the best povedble deal for Hongkong ins next year's Brusela arpatin tiny.
The reassuming noter beings made go some way towards
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explanning, the steady buying of buy textile firms' stures like LA.L. On the stock market over the past couple of days,
But it is not all wine and t roses. Local companies who have already signed contracts on what appeared to be a cut and dried trading climate in the i U.K. next year are now in trouble.
There is a chance that if they can prove genuine hardship Government may be able to offer compensation though this would be in the form of more yardage on their quotas rather than cash.
Manufacturers who are completely oriented towards cotton exports face the certainty of reduced profit margins this could squeeze
the small man hard.
We should learn more about the implications of the British statement later today when Financial Secretary Mr C.P. Haddon-Cave is due to fly into the Colony from his London talks.
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