particularly heavy in the case of Pakistan and
Taiwan, mainly at the expense of India and
probably of Hong Kong, but 20 or so supplier
countries are involved in varying degree. If
we assume that, apart from India, all supplying
countries fill their 1972 quotas, the excess
- if it were admitted would mean an increase
in imports from restricted countries of 70 million
square yards over 1971 or about 8%. This increase
would displace at least 9% of Lancashire
production at the 1971 level and would give
imports a 56% share of total UK consumption of
woven cotton textiles at the 1971 level.
additional imports would be coming very largely
These
from the cheapest sources and therefore would also
dep ress prices in spite of the new tariff.
4
As far as possible we must try:
a.
b.
C.
to maintain Ministers' intention of
limiting cotton textile imports in 1972 to the 1971 level plus 1%;
to avoid hardship and inequity on UK
importers and users;
to avoid exacerbating relations with
overseas Governments and suppliers.
5 Broadly speaking, there are three choices:
/OPTION I