TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 51

CONFIDENTIAL

TEKTILE IMPORT POLICY

DALET PASSAGE FOR INCLUSION IN MINIBPER'S SPEECH FOR THE

AFFIRMATIVE RESOLUTION DEBATE

Anorden

Morfol

Mir laid

Week

The decision to introduce a tariff on cotton textiles imported from the Commonwealth Preference Area was announced by the then President of the Board of Trade on 22 July 1969 and endorsed by this Government aftor taking office. It followed a recommendation by the industry's own Textile Council, after a two-year l'roductivity and Efficiency Study, that the teriff would offer a nargin of protection that was stable and predictable and would enable the industry to pin ahead with confidence. It was made clear that the decision would be subject to any modifications required if we joined the ERC. The Government also indicated that, although it was the intention to torminate the general quota system when the tariff came into effect, the use of quotas would be considered under the Long Tern Arrangement of the GAIT if total imports rose above present levels and if imports of particular products caused disruption.

2 The levels of tariff imposed under this Order are broadly in line with those of the Common External Tariff of the 10.

This is, therefore, a move in the direction of harmonising our tariff with the regime applicable to us after accession.

3 In several respects, however, matters have developed rather diffently than seemed likely up to a short time ago. The textile situation both in the world generally and here in the United Kingdom has deteriorated. In this c. untry the traditional textile

icult? areas in Lancashire are facing a différent employment problem. Successive Coverneenta, and I think, most of the leaders of the cotton textile industry, have accepted that the number of mille and the number of employees must continue to fell if a modem and prosperous industry in to cmerge. The Goveranent renein of thet belief. The need for the industry to modernise its plant and arnogement and streamline capacity is esprest es ever. that much has already been achieved.

Grecognise

But the present rate of