TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 131

POSSIBLE COURSES OF ACTION ON COTTON TEXTILE IMPORTS

24. Earlier sections of this paper have set out some of the conflicting

· considerations which need to be taken into account in deciding whether to

stand firm on the announced intention of relying on tariff protection

alone after 1 January, 1972, unless the conditions of the Crosland

formula are met; or whether to put ourselves into a position to curb

any disruptive rise. The main points to emerge are that

(a) the Textile Council recognised, and the Government agreed,

that Lancashire's future particularly within an enlarged

Community was dependent on a radical contraction,

reorganisation and modernisation. If too much protection is

given to the industry, the restructuring process which is

now belatedy getting under way will be slowed down. On the

other hand, if imports are suddenly permitted to capture an

even larger proportion of our market, the orderly decline of

the industry could become a headlong rout, at a time when

alternative employment opportunities in Lancashire are

particularly scarce

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(b) new problems (the failure of UK manufacturers to contain

prices like their overseas counterparts; the US restrictions

on non-cotton textile imports; the requirement to conform

to EEC quota arrangements on 1 January 1973) have recently

led us to take a more pessimistic view of the import

situation following liberalisation

(c) essentially, however, we are attempting to deal with a short-

term situation arising in the year 1972. On 1 January 1973,

we expect to be included within the scope of the Community

negotiated restraint arrangements.

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