HL Deb 26 October 1965 vol 269 cc527-8

2.45 p.m.

LORD ERROLL OF HALE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they will publish a list of all those countries, together with the relevant trade and commercial agreements or treaties, which will be affected by the proposal to introduce a single global limit for cotton textile imports.]

LORD SHEPHERD

My Lords, the proposal is to introduce a global limit on cotton imports from all countries except the following: the member countries of FINEFTA (which is EFTA with Finland) and the E.E.C., Australia, Canada, the Republic of Ireland, Japan, New Zealand, the United States and the Sino-Soviet countries. Imports from some of these countries will be subject to other arrangements. The international instru- ments mainly relevant to the proposals for a global limit are the General Agreement on Tariffs and Trade and the Long-Term Cotton Textile Arrangement made under the GATT.

LORD ERROLL OF HALE

My Lords, while thanking the noble Lord for that comprehensive reply, may I ask two sup-plementaries? First, what about those countries which are not members of GATT, such as Formosa? Secondly, will the noble Lord give an assurance that Her Majesty's Government will not break any agreement or treaties when attempting to implement the new policy?

LORD SHEPHERD

As I understand it, my Lords, all the countries which export significant amounts of cotton textiles to this country will be covered by GATT. The case of those countries that are not so covered will be subject to discussions. I think I should draw the noble Lord's attention to the fact that we are dealing at the moment with proposals. I think the House will bear in mind that as a country we import very much more cotton textiles than any other country. Some 35 per cent, to 40 per cent, of our own consumption of cotton textiles is imported. We have to protect our own industry during this phase of development and reorganisation, but I can assure noble Lords that there will be no unilateral breaking of treaties or agreements. There will be discussions and we hope we shall be able to obtain satisfactory agreements.

LORD REA

My Lords, does not the noble Lord agree that the real trouble is the condition of the cotton industry in this country? Can he assure the House that steps are being taken to move people gradually from the cotton industry into other industries in the United Kingdom?

LORD SHEPHERD

The noble Lord will be aware that there is a considerable improvement within the cotton industry, although there is a great deal yet to be done. We are hopeful that if the present trend continues we shall have an industry that will be able to stand up in any market. But this is the object of this global agreement.