TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 144

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continuing low efficiency and rising imports; the

structural shift away from cottons to man-made fibres

(MMF); and from woven to knitted fabrics, the relative:

failure of firms to contain prices.

In sum, what we

are witnessing is in effect the decline of the

traditional Lancashire system.

Where do imports fit in?

7. The Textile Council regarded the substitution of

quotas for tariffs as an essential part of the policy

for stability in the British industry. What has

happened to imports since 1968. In 1969 and in 1970

they fell, both absolutely and as a share of the

market. (Significantly there was little corresponding

improvement in British industry.)

8. Cotton Textiles

They have risen in 1971 but this rise has to be

kept in perspective; it will be seen (Annex A

tables 1 & 2) that, in comparison with the base year

used in the report of the Textile Council that imports

(as a % of apparent consumption) are the same for

woven cotton cloth and only slightly higher for cotton

yarn. The rise in imports of cotton textiles has in any

case been within the limits of the current restrictive

arrangements.

Bunching and upsurge was expected

(indeed this was the justification for providing

as recently as

-in the Finance Bill

relief from the tariff for the first three months of 72)

and can be traced to the roll forward of unused 1970

quotas plus the (expected) full use of the 1971 quotas.

MMP

9 These increased fairly significantly in 1971

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