EN CLAIR
FOREIGN AND COMMONWEALTH OFFICE TO MOSCOW
86
TEL. NO. 667
UNCLASSIFIED
22 JULY 1969 (COMMODITIES)
2
[NEUTRAL]
ADDRESSED TO MOSCOW TELEGRAM NO. 667 OF 22 JULY AND TO BUCHAREST. SOFIA, WARSAW, PRAGUE, BUDAPEST AND PEKING.
MY TEL NO.661 TO MOSCOW. COTTON TEXTILES,
FOLLOWING IS TEXT OF STATEMENT BY THE PRESIDENT OF THE BOARD OF TRADE.
THE GOVERNMENT HAVE NOW COMPLETED THEIR EXAMINATION OF THE TEXTILE COUNCIL'S REPORT ON COTTON AND ALLIED TEXTILES.
2..THE REPORT 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 CONCENTRATED IN PARTICULAR ON THE NEED TO INCREASE THE RATE OF RE-EQUIPMENT, EXTEND MULTI- SHIFT WORKING, AND DEVELOP CLOSER TECHNICAL AND COMMERCIAL LINKS
ETWEEN THE DIFFERENT STAGES OF PRODUCTION AND MARKETING. I ATTACH THE GREATEST IMPORTANCE TO THESE THREE REQUIREMNTS AND AM 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,
5..ON IMPORT POLICY, THE COUNCIL RECOMMENDED THAT THE PRESENT QUOTA SYSTEM SHOULD BE REPLACE BY A TARIFF ON IMPORTS OF COTTON TEXTILES FROM THE COMMONWEALTH PREFERENCE AREA AT A RATE NOT LESS THAN 85% OF THE MOST-FAVOURED-NATION DUTIES. ON COTTON CLOTH, THE MAIN ITEM OF
TRADE, THIS WOULD MEAN A DUTY OF 15%. THE COUNCIL BELIEVE THAT A TARIFF WOULD BE A BETTER SOLUTION BOTH FOR THE INDUSTRY AND THE
COUNTRY THAN A CONTINUATION OF QUOTAS. IT WOULD OFFER A MARGIN OF
/PROTECTION
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