TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 179

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N NO 148/71

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The Minister for Industry's meeting with the British Textile Employers' Association (BTEA) to discuss the Government's policy

on textile imports - 11 October 1971

The Minister for Industry

\Mr P W Ridley CT

Miss L Lowne

CT1

Mr J H Pownall CT1(a)

Mr NE Billingham CT1(b)

Mr JHL Walkor

APS/Minister for Industry

PRESENT

Mr Tom Normanton

Mr H Kershaw

Mr W Barnes

Dr P Smith

Mr F Dunkerly

Mr J Peel

Mr J Richardson

Mr C Henniker-Heaton Mr A Hall Mr D Shaw

Mr Normanton who led the delegation, said that the last two or three months had been months of extreme anxiety in Lancashire because of the dramatic acceleration in the closure of textile mills. The Minister had written on 14 June 1971 to Sir James Steel of the Textile Council that "

... it would be a matter of concern to the Government if the success of the new policy (of replacing textile quotas with tariffs) was being seriously jeopardised by disruptive developments on the import front." Though the economic depression did not help matters, he believed that the increased number of closures was attributable to an alarming rise in imports, which now accounted for well over half current textile consumption. Imports were now rising fast to "beat the 1 January 1972" deadline. Textile Council statistics showed a particularly worrying rise in imports of knitted garments, made up garments, and yarn. The plan to substitute a "derisory" 63% tariff for quotas in the Commonwealth Preference Area would greatly aggravate matters. He appreciated however that it would not in practice be possible to turn the clock back on these arrangements with the Commonwealth.

2.

Textile imports had been a cause for concern before but now, for the first time since the 1930's, substantial and lasting unemployment was a major problem. Lancashire was so badly hit by mill closures, often involving the more efficient enterprises, that the Liverpool Cotton Market was seriously considering the possibility of moving elsewhere.

3. BTEA asked the Government to take the following measures:-

(a) to use the provisions of the GATT to prevent dumping;

(b) to give urgent consideration to BTEA's earlier demands for

a more detailed categorisation of textile imports;

(c)

to 'roactivate' the Imports Comminnion;

/(a)