CONFIDENTIAL
to reaffirm the policy adopted by the Labour Government
the year before, it was expected that we would be able to .
maintain an independent textile import policy for a period
after entry into EEC; but, as you will remember, Ministers
recently accepted that,
in the light of the overall
negotiating position, we should not seek from the Community
the derogation necessary to allow us to do this.
2 The recommendations deal only with the possibility of
retaining some restraints on cotton textiles in 1972
concurrently with the new tariff. The introduction of
a multi-fibre system (e g covering shirts regardless of
whether they are made of cotton or man-made fibre) would be
logical in the longer run. But restraints on non-cotton
textiles could at present be imposed consistently with our
obligations only on a non-discriminatory basis (ie would
have to apply to the EEC, say, as well as to Asian suppliers,
except Japan which is already restricted), and could be
negotiated (as the US have done), if at all, only after
protracted discussions; the EEC have no Community-wide
restraints on non-cotton textiles at present. We therefore
favour (as, we understand, does the European Commission)
working towards international arrangements to regulate trade
on a multi-fibre basis, and in the meantime doing no more
than warning exporters of non-cotton textiles to the UK that,
if serious disruption occurs, we would be prepared to use our GATT safeguard rights.
2
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