TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 48

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a technologically different situation, where all textiles

should be dealt with on a comprehensive basis. All this

demanded the positive approach of tariff protection, rather than the negative approach of quotas."

"Any attempt to go back to a quota control system would be a retrograde step and would have international and

domestic repercussions."

Further Consultations with Indian Officials at DTI, 5 May 1971

DTI officials: "In the particular case of yarn, the UK spinners were already complaining that a duty of 61% was

not sufficiently high, but HMG wanted the industry to

learn to live behind a tariff of this order. In some

measure, the operation of the tariff would itself reveal

sectors which the UK industry did not find profitable and

where demand would therefore be filled by overseas suppliers."

"The progressive introduction of the tariff with quotas

remaining in force was completely at variance with HMG's

intentions in moving to the tariff. They did not wish to give the UK industry the dual protection of both the tariff and the quota; the aim was to induce UK industry to live

with the tariff alone. Once they became accustomed to both

the tariff and the quotas, it would be extremely difficult

to remove the quotas."

Consultations with Indian Officials at DTI, 6 May 1971

Sir Max Brown: "The UK objective was to provide a market

for cotton textiles in the UK on classical competitive

lines, using a limited tariff for protection of the domestic

industry."

CONFIDENTIAL