TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 89

CONFIDENTIAL,

SPEAKING NOTES

General Consideratione

1. There are some obvious donostic advantages in the tarife

solution, but notwithstanding what the President of the Board

of Trade sayo, the 1itely disadvantages from the international

standpoint would soon to outweigh those.

2. Cutton textile production in this country is expected

to continue to declino, and imports are by no means wholly

to blame for this situation; for example, the growing change

of demand to other fibres plays a barge part. But the continued

decline could voll lead in the years to come to a renewed

demand from the industry for further protection, by increased

tariffs, countervailing duties or removed quotas in additica

to tariffs.

3. The proposed tariff would reprosent a radical departuro

Prom the policy of allowing duty free entry for practically

all Commonwealth exports to this country. It would be tho

first time for many years that we had departed from thżo

policy and would be a major breach in the preferential system

which benefits us as well as our Commonwealth trading partners.

The countries nost severely affected would bo "non-whito",

and this fact could be uood against us since ERA countries

(especially, with regard to cotten textiles, Portugal and

Austola) and the Irish Republãe would be unaffected.

CONFIDENTIAL