TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 102

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CYPHER/CAT A

ROUTINE OTTAWA

TELNO. 725-

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NEUTRAL

RESTRICTED

TO FOREIGN AND COMMONWEALTH OFFICE

25 JULY 1969

ADDRESSED TO FCO TELNO. 725 OF 25 JULY, REPEATED FOR INFMN TO WASHINGTON.

YOUR TELEGRAM NO. 843 : [TO NEW DELHI] COTTON TEXTILES WHEN HE CALLED ON THE PRESIDENT OF THE BOARD OF TRADE ON 10 JUNE MR. PEPIN ALLEGED THAT IF WE IMPOSED A TARIFF ON COTTON TEXTILE IMPORTS FROM THE COMMONWEALTH IT WOULD BE LARGELY U.S. PRODUCERS

IN THE WHO WOULD BENEFIT AT CANADA'S EXPENSE AND NOT EXPORTERS 1 LESS-DEVELOPED COUNTRIES. THIS LINE WAS ALSO TAKEN BY DEA OFFICIALS, WHEN WE INFORMED THEM OF OUR DECISION TO IMPOSE A TARIFF AND ALSO BY THE CANADIAN TEXTILE INSTITUTE (MY TELNO. 717).

2.

WE SHOULD BE GRATEFUL FOR GUIDANCE ON THE VALIDITY OF THIS ALLEGATION AS YOU SEE IT. IF IT DOES NOT HOLD WATER, WE SHOULD BE GRATEFUL FOR AN INDICATION OF THE REASONS FOR BELIEVING THAT THE DEVELOPING COUNTRIES RATHER THAN THE U.S.A. ARE LIKELY TO BE THE MAIN BENEFICIARIES FROM ANY DECREASE IN CANADA'S COTTON

TEXTILE EXPORTS TO BRITAIN.

3. WE HAVE BEEN SPECULATING WHETHER ANYTHING CAN BE MADE OF THE FACT (IF YOU CAN CONFIRM IT) THAT A SUBSTANTIAL PROPORTION OF CANADA'S EXPORTS TO BRITAIN ARE OF THE COARSER CLOTHS REPRESENT ING THAT SECTOR OF THE MARKET WHICH A RICH DEVELOPED COUNTRY MIGHT BE EXPECTED TO LEAVE TO THE POORER DEVELOPING COUNTRIES

TO SUPPLY

SIR C CROWE

LAST

f

75

INTERNATIONAL TRADE DISTRIBUTION COMMODITIES DEPT

AMERICAN DEPT

RIVED IN R CISTRY No. 51 28 JUL 1969

HICKG/548/5

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