TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 63

0003230

G.F. 323

1

CONFIDENTIAL

- 26 -

in South Virginia and North Carolina and employing some

60,000 workers had reported that its civilian order

position was half what it was a year ago and production

had been curtailed by 16%; the company had only been

able to maintain production because of U.S. Government

military purchases. But it had had to cut back on its

re-equipment programme and stood to face further losses

if the Vietnam war should end.

61.

Sir Eugene Melville thanked Mr. Nehmer for the

detailed information but asked whether any general assessment

of profitability of the textile industry had been made.

He noted that a survey in the U.K. had shown that at any

one time about one third of the textile industry was

operating at a loss. But this did not mean that the industry

as a whole was unprofitable.

62.

Mr. Nehmer admitted that in general the public

companies did not show losses. He had some figures which

showed that in textiles average profits after taxes in the

first quarter of this year were 7.2%. This was higher than

for 1968 and 1967 although lower than for 1965 and 1966.

In apparel, the average profit was 10.3% in the first

quarter of this year. This was lower than last year but

higher than 1967. Overall profits in the textile and

apparel industry were lower on average than the profits

in all industry as a whole. Sales had shown similar

/fluctuations

CONFIDENTIAL