TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 80

CONFIDENTIAL

the

To the world at large we would also appear to be going

back on our word and surrendering to protectionism;

Lancashire lobby would appear to have got their way (even more so if we also do something about origin marking), and

would be encouraged to ask for more. It is true that

Mr Crosland also said that our policy would be subject to ·

any modifications that might be required if we joined the

EEC, but this is not quite the same thing as taking action

beforehand. To all this we would have to reply that the

modalities of entry into the EEC and high unemployment have

created a situation rather different from that foreseen by

Mr Crosland; the UK cannot sustain a liberal textile impot

policy when the rest of the world does not und we would ... 1.

bo taking a far higher proportion of low-cost textile impe 60

than any other major industrial country.

7 Against this background we have four options. The

first option is to stick to the Crosland safeguard formula.

We would be keeping our word internationally, but it would

mean standing up to Lancashire's pressure and running the

not inconsiderable risks described in paragraph 5.

mhe

8 The second option would be to monitor the volume and

pattern of imports in 1972 from countries now subject to

restriction by retaining import licensing against them.

quantities would not initially be restrained, but we would

warn suppliers that if imports seriously threatened to ni. we would introduce quotas at once. Under this course

5