TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 191

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Contents

R&R.

PA

6/6

(1) The correct title of the report is 'Cotton and

Allied Textiles - a report on present performance and future prospects'.

(2)

(3)

It iu only concerned with yarn and cloth of cotton and allied fibres3.

It lo based on a detailed atudy of 3 counts of yarn and 3 constructions of cloth, regarded by the Council as typical.

(4) It isolates 4 in problea areas of the British

textile industry:-

Structure and marketing;

18

1.

2.

xoase capacity and re-equipsent;

3.

(5)

(6)

(7)

71.51

ROASTED IN

COMAY 1969

иккикий

Cost reduction;

- this is Hong Kong'o

Imports -

concern.

The core of the report on isports ie the British cotton industry's cape that "it cannot obtain the long runa necessary if modernisation is to pay boonuse of presauce of importe which have secured the domestic market for long run fabrics" (599)*.

The Council believes that the British cotton industry must be unle competitive by:-

(*)

Productivity and better

management, plus

(b) Relief from the "price dis-

rupting offact of importa" (628)*

The Council's recommendations on imports are:-

2.

3.

#...'a policy must be alberod to inspire confidence;

à long term tariff should be imposed on Commonwealth cottons at 85% of the post Kennedy Round m.f.n. rate;

uotas should be removed, but P8Course should be rande to the protection against market

disruption provided by the GATT Cotton Textiles Aprangowent;

No dumping in the U.. market should be allowed;

(8)

5.

During the transitional period before tariff protection in

introduced, no significant

growth in existing quotas should

be permitted.

à separate note of dissent by Mr... Gartside recommends tariff protection and the maintenance of quotas.