TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 97

unlikely to be taking action alone. We therefore conclude that we should not impose restrictions now but should seck informal consultations with the EEC on the possibility of a joint response to the present situation.

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24. On the second argument that any quotas on cotton should apply as well to directly competing man-made fibre products, it is clear that ideally in any comprehensive quota system there should be single quota limits for directly competing products (og for shirts of all fibres, dresses of all fibres etc). Alternatively, some parallel restrictions on imports of directly competing mmf products could be imposed if we decide to have import restrictions on cotton textiles in 1972 in order to prevent substitution. However, despite the fact that some restrictions on a multi-fibre basis are a logical and probable development in the future, there are considerable difficulties in imposing such restrictions in 1972. Firstly they could not be justified by reference to the Long Term Arrangement on Cotton Textiles. Secondly, much of the recent increase in imports of non-cotton textiles comos from countries which cannot be regarded as low cost suppliers and which we would not propose to include in any restraints on cotton textiles. Thirdly, we should again be ahead of the pack internationally since the only notable example of single multi-fibre quotas at present is the recently imposed Canadian restriction on imports of shirts. Fourthly, although some EEC countries already restrict imports of non- cotton textiles, we would be moving ahead of official EEC thinking and might appear to be prejudicing the EEC position in advance.

25. From ell the above we conclude that we should not now decide to take any action to restrict imports of non-cotton textiles in advance of a threat to our industry actually materialising.

We believe, however, that we should continue to work for international consideration of the problems of trade in textiles generally and also attempt to consult informally with the EEC on a possible joint approach to these problems.

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