Conclusions and recompelubloon
Objectively, the case for combining to restvisk gem à
weak:
(a) UK imports from the quota control countrien are low,
representing only 6 of UK consumption.
(b) immediate liberalisebion would not have any very
significant practical effect on the viability of the UK industry
(c)
i.
our current derogation from alignment to the m0's Common Liberalisation list in respect of cotton yarn expires at the end of this year. At a time when we are urging our EEC partners to live up to more liberal principles it is avkunrd to seek a further derogation on one of the few products where their practice, with some exceptions, is more liberal them our own, and whore UK imports fall simificantly short of disruptive proportions.
But objective considerations apart, we have to consider the loss of confidence in the UK industry and the probable political outcry if the industry's case were rejected outright. Altoough we could not support the industry's request for retention of quotas at roughly the present levels for three years, we acknowledge that immediate liberalisation would have certain disadvantages. In the circuristances, we recommend a compromise which could be presented as a qualified acceptance of the industry's case, whilst our request to the Community for a further derogation would be expressed as a proposal for liberalisation by substantially increasing quotas over three years, to a level where restrictions can be eliminated. The increase would be by 25% (over 1075) in 1974, 50% (over 1973) in 1975 and 80% (over 1975) in 1976. The main points taken into account in framing this recommendation
are:
(a) Liberalisation in one move wou'd be likely to cause &
political outcrey.
(b)
(c)
liberalisation would tend to undermine confidence in the industry and might affect its investment plans. Industry's support for the Gov. rnment's textile volicy, and indeed for UK membership of the EEC, would be shakten if it were seen to lead, not to a fairer sharing of the "burden" of low cost imports, but rather to greater liberalisation by the UK at a time when the Six are doing nothing to open their markets.
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