TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 88

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3. IT REMAINS THE BRITISH GOVERNMENT'S INTENTION TO INTRODUCE

THE NEW TARIFF WHICH HAS NOW BEEN LAID BEFORE PARLIAMENT FOR

APPROVAL.

!

4. THEY HAVE, HOWEVER, COME TO THE CONCLUSION THAT; AT A TIME WHEN THE BRITISH MARKET IS PECULIARLY VULNERABLE, THE POLICY 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.

THE BRITISH GOVERNMENT HAVE TAKEN THIS DECISION ONLY AFTER THE MOST ANXIOUS CONSIDERATION. THEY BELIEVE THAT THE STABILITY

ба

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 RESTRICTIONS NOW BEING RETAINED WILL PERMIT A LEVEL OF COTTON TEXTILE IMPORTS FAR HIGHER PROPORTIONATELY THAN PERMITTED BY OTHER MAJOR INDUSTRIAL COUNTRIES, ALL OF WHOM HAVE LONG SINCE APPLIED A COMBINATION OF QUOTA AND TARIFF PROTECTION. DESPITE THE UNEMPLOYMENT IN THE BRITISH COTTON TEXTILE INDUSTRY THE QUOTAS

OTTO

FOR 1972 WILL BE INCREASED BY 1 PER CENT AS IN EARLIER YEARS.

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