The area of the industry where we feel there is the
nearest to a case for restraint is in knitted cardigans, sweaters
etc. It is not particularly impressive (see annex)
In
quantity, U.K. manufacturers had in 1971 almost 80% of the
domestic market, and in value almost 85% (their exports were
larger than total imports).
7
disneyes.
5. We can see little evidence of the alleged description of the
U.K. industry. The reported loss or jobs does not seem out of
line with the claimed increases in productivity, and in fact
is proportionately less than that for manufacturing industry
as a whole. There is some unused capacity, but the limiting
factor appears to be more shortage of labour than anything else.
The main manufacturers of outer garments appear to be operating
profitably.
6. Our situation as members of the E.E.C. is obviously a
highly relevant factor. Broadly the effect of current
national measures among the Six is that France and Italy have
almost total protection, whereas Germany and the Netherlands
are close to the U.K. in terms of imports of knitted goods
per capita. The Community is tending to move towards greater
protection against low cost textile imports from the Far East,
and there is little reason to doubt (whatever the formal rules
provide) that any steps we wished to take would be welcomed.
But as indicated in para. 2 above we think that it important
for our longer term objectives within the E.E.C. that we
should insist on selectivity, and action only where there is
clear justification.
3.