LONDON
JSS SERVICE
verdaum Service
8TH DECEMBER 1971
VERBATIM SERVICE. 377/71
WEDNESDAY
COTTON TEXTILE QUOTAS (SUPPS)
FOLLOWING ARE MAIN EXTRACTS FROM SUPPLEMENTARY QUESTIONS TO AND ANSWERS BY MR. JOHN DAVIES IN COMMONS TODAY WEDNESDAY EIGHTH DECEMBER 1971.
MR HAROLD LEVER: WHILE MAKING IT CLEAR THAT THE LABOUR PARTY MAINTAINS UNCHANGED ITS ATTITUDE TO THE LIBERALISATION OF TRADE, AND PARTICULARLY TO THE IMPORTANT PRINCIPLE THAT THE ADVANCED COUNTRIES MUST SYSTEMATICALLY BRING DOWN THE BARRIERS TO THE IMPORTATION OF THE INDUSTRIAL PRODUCTS OF THE LESS DEVELOPED COUNTRIES, A PRINCIPLE FROM WHICH WE WILL NEVER DEPART, I AM BOUND TO WELCOME THE RIGHT HON. GENTLEMAN'S STATEMENT
I AM BOUND TO WELCOME, NOT WITHOUT REGRET, AS A TRANSITIONAL MEASURE WHAT THE RIGHT HON. GENTLEMAN HAS SAID, BECAUSE THE ALTERNATIVE WOULD BE THE RAPID AND TOTAL COLLAPSE AND DISRUPTION OF THE LANCASHIRE COTTON TEXTILE INDUSTRY, PARTICULARLY AT A TIME OF HIGH UNEMPLOY- MENT IN AN AREA WHERE THE GOVERNMENT APPEAR TO HAVE DONE SINGULARLY LITTLE TO PROVIDE ALTERNATIVE EMPLOYMENT.
THE RIGHT HON. GENTLEMAN RIGHTLY SAID, THAT WE HAVE BORNE A DISPROPORTIONATE SHARE OF THESE IMPORTS. IN ORDER TO PRESERVE THE PRINCIPLE OF ADVANCING THE INTERESTS OF LESS DEVELOPED COUNTRIES, WILL HE TAKE STEPS INTERNATIONALLY TO BRING INTO BEING THE KIND OF DISCIPLINES WHICH WILL ALLOW THIS INCREASE OF EXPORTS FROM LESS DEVELOPED COUNTRIES TO TAKE PLACE AT A DIGESTIBLE PACE BECAUSE ALL ADVANCED COUNTRIES BEAR THEIR PROPORTIONATE SHARE? WILL HE ALSO TAKE STEPS TO SEE THAT THIS MATTER IS RAISED AT THE TALKS WHICH ARE PRESENTLY COMMENCING ON INTERNATIONAL MONEY AND TRADE QUESTIONS WHICH WILL PRECISELY COVER THIS AREA? WHILE ADHER-
ING TO THE PRINCIPLE OF PROTECTING THE INTERESTS OF THE LESS DEVELOPED COUNTRIES, MAY I ASK WHETHER THE RIGHT HON. GENTLEMAN WILL TAKE STEPS TO SEE THAT THIS IS DONE ON AN INTERNATIONALLY AGREED BASIS SO THAT THIS TRADE CAN PROCEED AND INCREASE WITHOUT CREATING THE KIND OF POLITICALLY AND SOCIALLY UNACCEPTABLE CONDIT- IONS WHICH WOULD PREVAIL IN THE LANCASHIRE COTTON TEXTILE INDUSTRY IF THIS ACTION WERE NOT TAKEN FOR THE TIME BEING?
MR DAVIES: 1 UNDERSTAND VERY WELL THE POINTS MADE BY THE RIGHT HON. GENTLEMAN AND WILL CERTAINLY TAKE THEM INTO ACCOUNT. HE WILL BE AWARE, AS I AM, THAT THE LONG TERM AGREEMENT AFFECTING TEXTILES COMES TO AN END IN SEPTEMBER, NINETEENS EVENTYTHREE. THERE IS, THEREFORE, MUCH ROOM FOR DISCUSSION ON AN INTERNATIONAL BASIS OF THE VERY POINTS WHICH HE HAS RAISED AND OF WHICH I TAKE DUE NOTE.
MR. FLETCHER-COOKE: IS NOT THE REAL CHANGE IN THE SITUATION THE FACT THAT THE UNITED STATES OF AMERICA HAVE IMPOSED FRESH BARRIERS UPON THE PRODUCTS OF THESE DEVELOPING COUNTRIES AND THAT, UNLESS WE ALSO TAKE DEFENSIVE ACTION, THE WHOLE LOT WILL COME IN HERE?
MR. DAVIES: THAT IS PARTIALLY TRUE, AND I MENTIONED IT IN MY STATEMENT. THE AMERICAN ACTION IS INDIRECTLY AFFECTING US IN THE SENSE THAT IT AFFECTS NON-COTTON TEXTILES, BUT
UNDOUBTEDLY THAT PUTS THE WEIGHT IN OUR MARKET AND WE HAVE TO RESPOND TO IT.
MR. J.T. PRICE: IS THE SECTY OF STATE AWARE THAT, WITHOUT ANY