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4. THEY HAVE, HOWEVER, COME TO THE CONCLUSION THAT, AT A TIME WHEN
THE BRITISH MARKET IS PECULIARLY VULNERABLE, THE FOLICY PREVIOUSLY
ANNOUNCED OF REINTRODUCING QUANTITATIVE RESTRICTIONS SELECTIVELY
ONLY IF AND WHEN IMPORTS OF PARTICULAR PRODUCTS CAUSE DISRUPTION,
IS UNLIKELY TO GIVE THE NECESSARY STABILITY OF MARKET AND
EMPLOYMENT CONDITIONS. IN PARTICULAR, THEY DO NOT FEEL CONFIDENT
THAT IN A SITUATION SUBJECT TO VERY RAPID CHANGE, THEY COULD
TAKE ACTION AGAINST DISRUPTION QUICKLY ENOUGH ON A PRODUCT BY
PRODUCT BASIS. IN FACT, IT HAS ALREADY BECOME APPARENT THAT ORDERS
IN THE PIPELINE, IN ANTICIPATION OF A QUOTA FREE MARKET NEXT YEAR,
ARE AT A LEVEL CONSIDERABLY HIGHER THAN USUAL.
5.
THEY HAVE, THEREFORE, DECIDED TO RETAIN IN 1972 THE EXISTING
QUANTITATIVE RESTRICTIONS IN ADDITION TO THE NEW TARIFF.
6.
THE BRITISH GOVERNMENT HAVE TAKEN THIS DECISION ONLY AFTER
THE MOST ANXIOUS CONSIDERATION. THEY BELIEVE THAT THE STABILITY
THAT THIS ACTION WILL BRING TO THE BRITISH MARKET WILL BE OF VALUE
TO OVERSEAS SUPPLIERS AS WELL AS TO THE BRITISH INDUSTRY.
7. THE BRITISH GOVERNMENT RECOGNISE THAT THE GOVERNMENT OF INDIA,
WOULD HAVE WISHED, IF QUANTITATIVE RESTRICTIONS HAD TO BE RETAINED,
FOR THE NEW TARIFF TO HAVE BEEN DEFERRED. BUT FOR OVER 2 YEARS
THE BRITISH TEXTILE INDUSTRY HAS PLANNED ITS INVESTMENT AND
MARKETING IN THE EXPECTATION OF PRICE AND PROFIT LEVELS RELATED TO
THE TARIFF, AND QUOTAS ALONE WOULD BE NO SUBSTITUTE FOR THAT,
8. THE RESTRICTIONS NOW BEING RETAINED WILL PERMIT A LEVEL OF COTTON
TEXTILE IMPORTS FAR HIGHER PROPORTIONATELY THAN THAT ALLOWED IN
CTHER MAJOR INDUSTRIAL COUNTRIES, ALL OF WHICH HAVE LONG SINCE
APPLIED A COMBINATION OF QUOTA AND TARIFF PROTECTION.
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