TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 76

CONFIDENTIAL

MINISTER FOR INDUSTRY

cc Minister for Trade

JPS(I) & JPS(T) Secretary

{Indust

Secretary (Industry) Secretary (Trade) Mr Hughes Dep Sec Mr Denman Dep Sec Mr Bullock De Sec Mr Lam

CRE1

Mr Sanders CRE2

Mr Preston CRE3

Mr Edwards CRE5

Mr D Carter T

Mr Penrice ECS

Central Secretariat

Miss Lowne CT 1

Mr McEnery

CT2

Mr J Hale

FCO

Mr Coffin

IC3

TEXTILE IMPORT POLICY

I attach a paper by the Working Party of DTI officials

which has been considering UK textile import policy in the

light (a) of the complaints from sections of the cotton

and allied textile industry in Lancashire that the new tariff

on Commonwealth cotton textiles will provide too little

protection; (b) of the likely re-imposition of some

quantitative restrictions on our cotton textile imports in

1973 following our joining the European Community; and (c):

of the risk of diversion of man-made fibres to our market

because of the new American restrictions on Asian suppliers.

The present policy of relying on tariff protection alone

after 1 January 1972 has been called into question primarily

because of (b). When Ministers decided in August 1970

1