TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 36

(F)

(G)

increases above present levels, causing disruption to

the

our market on those products. On the other hand,

prospects assuming that the L.T.A. or some similar

system is in force in 1972, is that other developed

countries will continue to protect their markets with

quotas as well as tariffs. As you know, all of them

import a far smaller proportion of their consumption

from the developing countries than we do.

1

The U.. quota system has been strongly criticised by

many of the developing countries, including a number

of countries in the C.P mainly because of it

discriminetėse against countries which had not fully

established themselves in the merket in 1962-64, the

base period for the quotas The pattern of categorisa-

tion is also becoming increasingly out of date.

The textile cycle is expected to turn downwards in

1970, a year i which it would have been extra-

ordinarily difficult for the Government to have let

things go on as they are, t-upacant.

(H) You should reiterate the President's assurance that we

are not setting a precedent for tariffs on other

Commonwealth products: cotton textiles are, by

international consent, a special case. At the

another

meetings referred to in paragraph 3, this point will

be strongly stressed.

(I) The Textile Council is not just A trade association.

It is a statutor: Development Council set up under the

Industrial Reorganisation and Development Act, 1947,

to increase the productivity and efficiency of the

industry. It has an independent Chairman,

Sir James Steel of the Steel Group, and two economists

as independent members, including one (Mrs. Miles) who

has worked at the .N. on problems of developing

countries,

The Council recommendation on the tariff

was unanimous,

/(T) Free