TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 136

which would already be on the water, and for which payment would

already have been made by the importer. If a very limited number of

licences were to be made available for the balance of the year,

problems would arise in allocating them amongst the various importers

with outstanding contracts.

(3) A global quota for 1972

32. This is a development of the monitoring system, but giving a better

control over the total quantity imported from the developing countries.

Specific licensing for these countries' cotton textiles which was to

have been discontinued next spring would instead be continued for the

rest of next year.

It would be announced that the total number of

licences to be issued would be equivalent to, but no more than, the

sum of the Indian, Hong Kong and global quota countries' quotas for

1971. The 1972 ceiling would be broken down into (a) yarn and

greycloth combined, (b) finished cloth and (c) made-ups, but not

categorised in detail like the 1971 quotas. This system would permit

freer competition between the supplying countries than has been

possible under the present quota controls; with the disappearance of

the categorisation provisions, the developing countries would tend to

concentrate on the types of textiles they could produce most efficiently, which in turn would compel Lancashire (as the Textile Council's report

envisaged) to concentrate on those products in which its relative

competitiveness was greatest. However, as under the monitoring system,

a watch would be kept over the pattern of imports, and if necessary

action taken to restrict particular products within the overall

ceiling, if an important sector of the domestic industry was at risk

through disruptive imports.

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