TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 61

position

схи

(live major

listik concerns appear our t share the

viris if the

BTER); In punts were

stocks are not intended for immediate sale

provide their own economic brake. And again.

the Crosland Safeguard formula cản be

invoked.

11.

One has sympathy for the DL's desire

Im to help Lancashire but we should hold to

our belief that the reflationary measures

taken this year should increase consumption

and reduce employment. We should not be

driven

merland panic-stricken into a policy of protectionism

at the behest of a small group of textile

Aortaver

manufacturers. And, since the proposed

wie Chan wadd

DTI policy would ontinue to allow at Teast

the current level-of-imports, It would

S

nat help Igneashire.

Jone

Tyon if theyPIAA,

this must be one of the key elements to

provide the pressure to get rid of the less

viable firms. While there is some evidence

to show that imports may respond more

f

quickly to demand than domestic production,

we believe that the latter should revive

by mid-1972. Although overseas suppliers

have clearly controlled prices better in

the past than UK producers (a relative

difference of 20% from 1968-1970), there

is some sign that price increases since

December 1970 have been at about the same

level for both foreign and British textile

suppliers.

NOTHING TO BE WRITTEN IN THIS MARGIN