TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 143

4.

CONFIDI.

Although unemployment (4,500 out of total of

104,000) is above the national average, the industry's

performare compared with the TC's forecasts, shows

(a) a greater labour force

.(b)

(၁)

surplus capacity being eliminated too slowly

(spindles to reduce by 56% in 1975 are down

by only about 13%)

investment £15m., or less compared with

£15/25m. (IRC re-equipment facilities were

greatly under-used)

(d) production down in 1970 and 1971

In sum the industry once again presents a

picture of having as a whole failed to adjust early

times may have been hard but apparently are

enough;

not hard enough.

5. Most of the present fuss is coming from the

smaller and weder firms who tend to form the majority

in the British Textile Employer's Association (BTEA).

Rani

Although they have asked for, and been given, a long

transitional period(2 years) before relying on

tariffs alone, these more vulnerable sectors are

The

becoming more nervous as 1. January approaches,

bigger groups on the whole continue to speak fairly

confidently about the future.

6.

A variety of factors cause the present higher

level of unemployment in Lancashire.

The general

state of the economy, (the July measures may have

accentuated a shift in the pattern of consumer

expenditure towards consumable durables), the combina-

tion of static demand and production, rising costs,

2.

/ continuing

CONFIDENTIAL

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