TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 98

POSSIBLE COURSES OF ACTION ON COTTON TEXTILE IMPORTS

26.

Earlier sections of this paper have set out some of the conflicting considerations which need to be taken into account in deciding whether to stand firm on the announced intention of relying on tariff protection alone after 1 January, 1972, unless

or whether to put the conditions of the Crosland formula are met; ourselves into a position to curb any disruptive rise. points to emerge are that

The main

If too

(a) the Textile Council recognised, and the Government

agreed, that Lancashiro's future particularly within an enlarged Community was dependent on a radical contraction, reorganisation and modernisation. much protection is given to the industry, restructuring process which is now belatedy getting under way - will be slowed down.

the

On the other hand,

if imports are suddenly permitted to capture an even larger proportion of our market, the orderly decline of the industry could become a headlong rout, at a time when alternative employment opportunities in Lancashire are particularly scarce.

(b) new problems (failure of UK manufacturers to contain

the US prices like their overseas counterparts;

(c)

restrictions on non-cotton textile imports; the requirement to conform to EEC quota arrangements on 1 January 1973) have recently led us to take a more pessimistic view of the import situation following liberalisation

essentially, however, we are attempting to deal with a short-term situation arising in the year 1972.

On

1 January 1973, we expect to be included within the scope of the Community negotiated restraint arrangements.

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