TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 15

Me Preston CPE

Mr Sanders CRE

Miss LackeyCRE

Mr Cray

CRE

Miss Elliott CRE

Mr Herzig CRE

Mr Wells ECs

Mr Brearley T

Mr Whaley

T

Mr Hale

FCO

Mr Dodds

FCO

Mr M Wood

FCO

Miss Lowne

CT1

Mr McEnery

CT2

Mr Pownall CT1

Mir Pryke

CT2

Miss Welch

CT1

Referen............................

CONFIDENTIAL

cc Mr Lam CRE

Mr Gildea CRE Mr Barry CRE Mr Nicoll CPE

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CODE 19-7!

Mr Billingham CT1

Miss Walters · CT1

TEXTILE IMPORTS

We agreed at yesterday's meeting of the Working Party on Textile Policy to circulate, if possile by the end of to-day, the various dinite necessary to implement a decision by Ministeru to rebuin the present system of quotan on low cost cotton textile imports in 1972. Comments on drafts must be received by close or play to-morrow, 24 November, if the various papers are to be finalised in time for sub.ission to DTI Ministers in week-end boxes on Friday. This admittedly is on the assumption that, the debate on the Affirmative Resolution introducing the tariff on CPA cotton textiles may be held any time from next Monday onwards.

I attach

a

a draft passage for inclusion in the Minister's speech introducing the Affirmative Resolution;

b

a draft Aide Memoire for posts to hand to Governments of the countries whose cotton textile imports will remain on quantitative restrictions.

Both drafts as you will see recognise explicitly that a ma in reason for the decision is the prospect of application by the UK in 1973 of the SEC's system of quantitative restrictions on cotton textiles. I do not think that we can possibly duck this. Heither of the other factors is sufficient to explain this last minute change of front; and if Ministers lean too heavily on unemployment they will be wide open to pressure for quota protection from other industries where there is unemployment, in some cases quite possibly higher than in Lancashire. DTI Ministers recognised when they discussed the textile problem on 17 November that the only defensible distinction between cotton textiles and other products is the fact that the EEC has general restrictions on them.

4

The other drafts which CT Division undertook to provide will follow as soon as possible.

PW RIDLEY CT

23 November 1971

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