TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 138

36.

Lancashire too would no doubt prefer a global ceiling to a monitor-

ing system, although even the former would be a much weaker form of

protection than it is now seeking. If Ministers decide that the

global solution is the one to be pursued, they should do so in

recognition of the fact that they will gain small thanks from the less

efficient sectors of the industry which have been acting as a pressure

group; that firms and workers will continue to be forced out of the

industry throughout 1972; and that the UK will come under considerable

criticism internationally for breach of faith (particularly from the

efficient producers who stood to gain most from complete liberalisation).

Nevertheless, despite all these disadvantages, if it is decided that

positive action in some form or other must be taken, a global solution

appears to be the one which holds the balance best between the various

conflicting interests.

B7.

Two further points will need to be decided if it is agreed that

cotton textiles should be subject to some form of quantitative control

in 1972; on the liability for duty of CPA goods shipped under quota in 1971 but arriving in 1972; and on whether the 1972 arrangements

should include duty-free quotas.

38: On the first point, we recommend that the decision should stand to

give duty relief to restricted CPA goods which are in transit at the

turn of the year.

We told the countries concerned some months ago that

this concession would be made, thus enabling them to spread shipments

evenly over the full twelve months of 1972. Withdrawal of the

concession now, quite apart from tarnishing the UK's reputation still

further, might provoke some at least of the CPA developing countries

to discontinue the restraint on exports they are supposed to operate up

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