polyester/cotton restraint levels from these countries, we believe that the Thai and Colombian cotton levels should be increased to 2,000,000 square yards each as part of the deal. This would be an inducement to accept the new export restraints on polyester/cottons;
it would make our action
The
easier to justify if challenged in an international forum; and it would enable us to give the newly restrained countries the same limited transfer facilities between cotton and polyester/cotton quotas which are included in our arrangements with Hong Kong, South Korea and Taiwan. UK industry might protest, but the amounts involved are minimal in the context of our total cotton imports, and we are proposing to make this small concession as part of a package deal whose main purpose and effect will be to consolidate protection for UK producers of polyester/cottons. In any case, we are likely to wish to introduce some minimum country quota level as a general rule before long, for a variety of goods reasons. In the meanwhile we could resist any pressures from other restrained countries for similar treatment, on the grounds that the concession applied only to countries 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.
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 EEC legislation, consultation with industry should take the following form. We 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 of the objectives and alternatives agreed with Ministers, at the same time that we request consultations; detailed modifications might be agreed, but if industry's arguments for substantive changes appeared convincing to officials, Ministers would again be consulted. Thereafter industry would be kept promptly informed of progress.