TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 121

in imports of cotton textiles was expected in 1971 and early 1972

accompanying the change in import policy, but there is evidence that

price factors have played a prominent part in stimulating imports as

opposed to home output. Overseas competitors appear to have controlled

cost increases where UK producers have not. The imposition of the

tariff on imports of cotton textiles from the Commonwealth Preference

Area should, at least for a time, partly correct this imbalance

(except in the case of Hong Kong, which is expected to absorb most of

the tariff by paring its present large profit margins). Other

special factors, however, have to be taken into account which are dealt

with in the next section.

- 6-

: