TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 18

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to the UK market will be of value to overseas

suppliers as well as to the UK industry.

Z India, Hong Kong, Pakistan In choosing

to maintain existing restrictions the British Government

have also been influenced by the view that this is

likely to benefit traditional suppliers in 1972; and

whilst the British Government cannot of course antici-

pate the patterns' of restrictions applying to the UK

which the European Commission will negotiate for the

period after 1 January 1973, it seems reasonable to

expect the pattern to be determined at least in part

by actual trade in 1972. Despite unemployment in the

UK cotton textile industry the quotas for 1972 willbe

increased by 1% as in earlier years.

to. The British Government recognise that the Government of

India, Hong-Kong, Pakistan would have wished, if

quantitative restrictions had to be retained, for the

new tariff to have been deferred. Bu, for over 2 years

the UK textile industry has planned its investment. and

marketing in the expectation of price and prorit levels

related to the tariff, and quotas alone would be no

substitute for that. The British Government continue

to believe that efficient producers will be able το

sell profitably in the UK over the new tariff and the

restrictions now being retained will pormit a level.

allowed

of cotton textile imports far higher than that AK ON

vo-enter major industrial countries, all of whom have

long since applied both quota and tariff protection.

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