TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 174

CONFIDENTIAL

RECORD OF TEXTILES POLICY: MEETING AT DEPARTMENT OF TRADE

AND INDUSTRY ON 3 NOVEMBER 1971.

59

Mr Ridley said that although the recent ECS report

confirmed the views in his interim submission to Sir John Eden

that rising imports was only one factor in a multiplicity of

factors which had led to the deteriorating situation in

Lancashire, new factors were:

(a) unemployment redundancies in the textile industry

were not being absorbed by other jobs;

(b)

we should be moving back to q.r.s. in 1973;

(c)

the recent US restriction agreements on man-made

fibres with the Asian suppliers.

2.

The immediate problem was that for political reasons

something had to be said in the debate on the introduction of

the new tariff on CPA cotton textiles in mid-November which

would encourage Lancashire.

3. Following substantive discussion (recorded separately in

a fuller minute) Mr Ridley summed up by saying that the draft

submission to DTI Ministers should take the following form:

(a) an analysis of the situation and pointers to the

various threats;

(b) a statement of the various constraints imposed by

our international obligations;

(c)

the political awkwardness vis-a-vis the Commonwealth

of our taking action;

(a)

an underlining of the fact that any restrains will

hit Hong Kong particularly hard.

CONFIDENTIAL