TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 30

Mr Keeble Mr Renwick

PA

1/ 2411.

78/5/1

ECONOMIC POLICY COMMITTEE

Wednesday, 24 November 1971 - 11.15 a.m.

Item No. 4: BRITISH TEXTILE IMPORT POLICY

Memorandum by the Secretary of State for Trade & Industry (EPC (71)97)

PROBLEM

1.

Whether the Foreign and Commonwealth Office should agree to the proposal in EPC (71)97 that from 1 January 1972 imports of cotton textiles should be regulated by quotas in addition to

tariffs.

BACKGROUND & ARGUMENT

2. Annex A sets out in detail the main considerations (together with statistical information) involved in the DTI proposal.

(a)

3. The DTI case for proposing increased protection to the British textile industry is based on the following premises.

The current state of the Lancashire textile area.

Expected increased quantities of textile imports for early

1972 which might be added to when it is known that we

intend to introduce quantitative restrictions when we join

the EEC.

(b)

(c) The recent American restrictions on imports of non-cotton

textiles.

IS THERE A CASE FOR INCREASED PROTECTIONISM?

4. The 1969 Textile Council report was a blueprint for the restructuring of Lancashire industry to become fully competitive

by European standards. The Council believed that a tariff

CONFIDENTIAL

/would

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