TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 121

CONFIDENTIAL

PA K6131.

14

Problem

Cabinet

Ministerial Committee on Commercial Policy

International Trade in Textiles

PC(69)18

· With the attached paper, the President of the Board of

Trade circulates a note containing recommendations about our

policy on international trade in textiles and says that unless

him

any of his colleagues lets you know by noon today that he wants discussio

to discuss, he will assume that they agree that the Board of

should adopt the line proposed. The paper reached this

Department only yesterday evening and the President's office

have been warned that our comments cannot meet the proposed

deadline, though it is unlikely that we shall want to ask for

a meeting to discuss the paper.

Recommendation

2. I recommend that Mr. Mulley write to Mr. Crosland on the

lines of the attached draft letter.

Argument

3. The paper seeks to resolve a fundamental policy dilemma.

On the one hand, since we have decided (with effect from

1 January, 1972) to rely on a tariff instead of the present

quota system for the protection of domestic industry against

imports of cotton textiles, it would suit us if the long term

забержетьем arrangement on cotton textiles (which expires on 1 October, 1970)

a

CONFIDENTIAL