TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 65

CYPHER/CAT A

CONFIDENTIAL

IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE

TO BERNE

TELEGRAM NUMBER 114

19 JULY 1969. (COMMODITIES)

CONFIDENTIAL.

NEUTRAL.

ADDRESSED TO BERNE TELEGRAM NUMBER 114 OF 18 JULY AND TO CERTAIN OTHER POSTS.

MIPT. FOLLOWING IS TEXT:-

I HAVE NOW COMPLETED MY EXAMINATION OF THE TEXTILE COUNCIL'S REPORT ON PRODUCTIVITY AND EFFICIENCY IN THE LANCASHIRE TEXTILE INDUSTRY.

2. THE COUNCIL ADDRESSED A NUMBER OF RECOMMENDATIONS TO BOTH THE GOVERNMENT AND THE INDUSTRY, AND THESE HAVE BEEN THE SUBJECT OF CONTINUING CONSULTATIONS WITH THE COUNCIL.

3. THE RECOMMENDATIONS TO THE INDUSTRY WERE CONCERNED IN PARTICULAR WITH THE NEED FOR INCREASING THE RATE OF RE- EQUIPMENT, THE EXTENSION OF MULTI-SHIFT WORKING, AND THE DEVELOPMENT OF CLOSER TECHNICAL AND COMMERCIAL LINKS BETWEEN THE DIFFERENT STAGES OF PRODUCTION AND MARKETING. THE GOVERNMENT ATTACH GREAT IMPORTANCE TO THESE THREE REQUIREMENTS AND ARE WORKING CLOSELY WITH THE TEXTILE COUNCIL ON THEIR IMPLEMENTATION.

4. THE MAIN RECOMMENDATIONS TO THE GOVERNMENT CONCERNED FUTURE POLICY ON IMPORTS AND FINANCIAL ASSISTANCE TO ENCOURAGE RE-EQUIPMENT.

A

!

5. ON IMPORT POLICY, THE COUNCIL RECOMMENDED THAT THE

PRESENT QUOTA SYSTEM SHOULD BE REPLACED BY A TARIFF ON

IMPORTS OF COTTON TEXTILES FROM THE COMMONWEALTH PREFERENCE

AREA AT A RATE NOT LESS THAN 85 PER CENT OF THE

MOST-FAVOURED-NATION DUTIES. ON COTTON CLOTH, THE MAIN ITEM OF TRADE, THIS WOULD MEAN A DUTY OF 15 PER CENT. THE COUNCIL BELIEVED THAT A TARIFF WOULD BE A BETTER

SOLUTION BOTH FOR THE INDUSTRY AND FOR THE COUNTRY THAN,

A CONTINUATION OF QUOTAS. IT WOULD OFFER A MARGIN

OF PROTECTION THAT WAS BOTH STABLE AND PREDICTABLE,

LAST

CONFIDENTIAL

REF.

NEX)

P-F.

SO ENABLING