than in the past, and would not give the industry
the incentive to undertake the investment needed
to make it more competitive.
6.
Imports of cotton textiles into Britain, the greater
part of which enter duty-free, have now reached 53
per cent of total domestic consumption. This is a far
higher proportion than in any other majored developed
country. In these circumstances we have the
alternatives of re-negotiating the present unsatisfactory
quota arrangements, or adopting a tariff which would
be broadly in line with those of other developed
countries. The Government have decided that the
right course is to introduce from 1st January, 1972
a tariff on imports from the commonwealth preference
area on the lines proposed by the Textile Council.
From that date the existing general quota system would
be terminated; and the Government would consider the
use of quotas only on particular products under the
Long Term Cotton Arrangement of the GATT, and only if
total imports of cotton textiles rose significantly
above the present level and caused disruption to
the market in these products.
These decisions would,
of course, be subject to any modifications that
might be required if we joined the E.E.C.
/ 7.
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