CONFIDENTIAL
POLYESTER/COTTON TEXTILES
Proposed restraints on imports from Thailand, Macao, and
Colombia
93/E.
Imports of polyester/cotton textiles from Thailand, Macao and Colombia are expected to rise rapidly to levels similar to those from Far Eastern countries whose exports to
the UK are restrained. Action is now proposed to limit
imports from these three additional sources.
2. Last July, Ministers agreed to voluntary restraint arrangements for imports of polyester/cottons from Hong Kong and South Korea, with corresponding measures against Taiwan. Restrictions were needed because the growing volume of imports
was having serious effects on the UK market, on employment opportunities and on the UK industry's ability to undertake the investment necessary to become competitive in Europe and generally. We were primarily concerned with imports from Hong Kong, but also needed to act against South Korea and Taiwan, which were well placed rapidly to build up their trade, were covered by US restraints, and could not be more favourably treated than Hong Kong. Japan already restricted her exports to the UK. There was then no need for action against other developing countries which did not produce or were considered unlikely to send us appreciable quantities of polyester/cottons.
Prospective imports
3. In March this year, with the active approval of UK industry, we introduced an import licensing system designed to keep a close watch on import trends from a wide range of developing countries. Since then, licence applications have been received with evidence of firm orders for 10.7 million
sq yds of polyester/cotton cloth and made-ups from Thailand, 1.15 million sq yds from Macao and 2.3 million sq yds from Colombia. In no case* do licence applications for goods from other countries represent more than 500,000 sq yds and the total of licence applications in 4 months is just over
*
except Spain
(1.6mn sq yds)
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