CONFIDENTIAL
operating export restraints on polyester/cottons.
If obliged
to impose import restrictions on either Thailand or Colombia, we would not raise the cotton level.
Consultation with industry
We
14.
It was agreed after the restraints on the principal polyester/ cotton suppliers were introduced last year, particularly in the light of the heavy forestalling by South Korea, that in any future exercise of this kind representatives of the UK industry would be present "in the wings" for consultation. In view of the need for prompt action and the constraints of EEO legislation, consultation with industry should take the following form. should have early informal contact with the British Textile Confederation about the line we have proposed to Ministers. Thereafter, we should have a full discussion with industry, including representatives of converters and makers-up, of the objectives and alternatives agreed with Ministers, at the same time that we request consultations; detailed nodifications might be agreed, but if industry's arguments for substantive changes appeared convincing to officials, Hinisters would again be consulted, Thereafter industry would be kept promptly informed of progresB.
Conclusion and recommendation
15
We believe that the evidence of prospective growth of imports of polyester/cotton textiles from certain low-cost sources is such as to warrant our securing restraint arrangements with the some effect as those already in force as regards South Korea and Talvon. Ministers are asked to agree that
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b
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we should consult without delay with Thailand and Colombia with a view to them taking unilateral action to limit their exports;
restraints should have the same coverage and be for the same period as those in the case of South Korea and Taiven;
restraint levels should be based on either the amount delivered during 1973 or 2 million square yards (whichever is lower), with a 5% annual growth rete for subsequent years;
as an inducement to Thailand and Colonbia we should offer to raise their cotton quotas to a maximum of
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}