TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 60

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40 The recommendations to the Goverment

mainly concerned future policy on imports and

financial assistance to encourage re-equipment.

5. The main recommendation on import policy

was that the present quota system should be

replaced by a tariff on imports of cotton

textiles from the Commonwealth at a rato not

less than 85 por cent of the most-favoured-

note! nationjdutics.

On cotton cloth, the main item

of trade, this would mean a Commonwealth duty

of 15 per cent. The Council considered that

a tariff would be a more appropriate solution

for the industry and for the country than quotas.

The margin of protection would be both stable

and predictable, enabling the industry to plan

4 Armed

ahoad in confidence; ·

(Cuotas,

on the other

hand, were likely to prove oven less effective

in future than hitherto and would

not) Live

give firms

in the industry an incentive to undertake the

investmont required to make the industry more

competitive.

Line

Council also recommended

/that

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