CONFIDENTIAL
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SOME
BRITAIN ARE NOT VERY DIFFERENT AND THAT PRESENT CANADIAN TARIFFS, WHICH ARE ON BALANCE HIGHER THAN THOSE WE WOULD APPLY, HAVE BEEN QUITE INSUFFICIENT TO PREVENT A GROWING FLOOD OF IMPORTS. OFFICIALS HAVE TOLD US THAT THEY BELIEVE THAT THE U.K. TEXTILE INDUSTRY, IN PRESSING FOR A TARIFF, MAY HOPE THAT ITS SUBSEQUENT !NEFFECTIVENESS WILL LEAD TO THE RE-INTRODUCTION OF QUOTAS (OR TO THE MAINTENANCE OF TRANSITIONAL QUOTA ARRANGEMENTS): AND THAT ACC- ORDINGLY THE BRITISH INDUSTRY WOULD HAVE SECURED THE BENEFIT OF A DOUBLE RESTRICTION.
(C) THE CANADIANS ALSO FEAR THAT A MOVE TOWARDS TARIFF PROTECTION WOULD EMBARRASS THEIR OWN DOMESTIC POLICIES. WHILE THEY BELIEVE THAT HONG KONG, AMONG OTHERS, WILL REPRESENT TO US THAT THE TEXTILE COUNCIL PROPOSALS WOULD INVOLVE A LOSS OF HER PREFERRED POSITION, THEY FEAR THAT HONG KONG WILL TURN THE ARGUMENT THE OTHER WAY HERE AND SUGGEST THAT CANADA SHOULD NOT BE GOING FOR GREATER QUOTA PRO- TECTION AT A TIME WHEN THE U.K. IS MOVING AWAY FROM THIS SORT OF CONTROL. CANADIAN POLICY ON TEXTILES IS IN A VERY CONFUSED STATE AND CANADIAN OFFICIALS WOULD, WE THINK, BE UNHAPPY ABOUT A NEW MOVE BY THE U.K. AT THE PRESENT TIME LEST THIS SHOULD COMPLICATE THEIR ALREADY VERY DIFFICULT PROBLEMS.
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IF WE COULD CLAIM THAT A TARIFF SOLUTION REPRESENTED A MOVE TOWARDS A MORE LIBERAL REGIME ESPECIALLY IN REGARD TO IMPORTS FROM DEVELOPING COUNTRIES, WE COULD PERHAPS RECKON ON SOME APPEAL TO THE STRONG HUMANITARIAN FEELINGS AMONG THE CANADIAN PEOPLE GENERALLY FOR THE POORER NATIONS (THOUGH THESE ARE OFTEN DILUTED WHEN THEIR POCKETS ARE INVLOVED). BUT WHATEVER THE PRACTICAL EFFECT OF THE TARIFF, SUCH A PRESENTATION WOULD SEEM IMPOSSIBLE IN VIEW OF WHAT IS SAID IN THE TEXTILE COUNCIL REPORT AND PARTICULARLY, OF THE RE- DUCTION OF IMPORTS INVISAGED.
CONFIDENT IAL
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