TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 123

levels in Lancashire (as elsewhere) are unusually high, and

redundant textile workers are finding it difficult to obtain

other employment.

which may

Secondly, Ministers have now decided that the UK should not seek a

derogation from the obligation to fall into line, from the

date of our entry into the Common Market, with the Community's

cotton textile restraint arrangements with the major low cost

suppliers. This means that, in the course of 1972, the

Commission will renegotiate its existing agreements with seven

. countries to include quotas for the UK and the other three

EEC applicants. Once this becomes generally known

happen at any time, now that we have made our position clear

in Brussels there is a serious risk that UK importers and

exporting countries alike, realising that there will be only

one year of liberalisation between the ending of the present

UK quota scheme, and our adoption of the possibly more

restrictive EEC arrangements on 1 January, 1973, will build

up vast stocks of imported cotton textiles in the UK in the

course of 1972, to forestall the new controls.

Thirdly reliable informants in the importing trade tell us that the more

responsible importers themselves are becoming alarmed at the

size of the forward contracts they have entered into for 1972,

not only with established suppliers like Hong Kong and others

like Taiwan and S Korea, which had been particularly

unfavourably placed under the quota controls, but also from

a string of new Asiatic suppliers (Thailand, Indonesia etc).

With so many suppliers competing for business, the prices which are being quoted are said to be exceptionally low.

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