TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 128

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Effect on and regations in Commonwealth contaies

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We may expect all the Commonwealth countries affected

to react adversely to the tariff proposal both on the general

grounds mentioned above and also because of the fear of danego

to their export trade. Reactions are likely to bo

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particularly fierce from Indie who, it is estimated, right

loco by 1975 more than half the value of hor present ozporto

of cotton textiles to this country unless the Indian Covemment

took special action (e.g. by way of subeidios) to prevent

this happening.

8. We have received clear indications that the Canadian

Goverment would also be highly critical since they are

certain that the imposition of a tabiff would very much roducc

Canadian exports to Britain (about £10 million in 1960).

Pressures for comprehensive import controle in Canada would

increase,

9. The Canadians also doubt whether the imposition of a

tariff on Commonwealth textilos would secure the degree of

protection and the reduction of imports which the Textilo

Council's Report suggests. The Canadian argument is that

coste in Canada and Britain are not very different and that

present Canadian tariffe, which are higher than wo would

apply, have been quite inadequate in proventing a groving

flood of importo. Canadian officials fear that, in pressing

for a tarife, the boxtile industry may hope that ito subsequen

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CONVIDEOTAT.