§ 9. Mr. Stewardasked the President of the Board of Trade why cloth, which can be made and sold at comparable prices in this country, is permitted to be imported from Italy, thus adversely affecting our own textile areas where there is at present considerable unemployment.
§ Mr. MackesonImports of cloth from Italy, as from all other countries outside the sterling area, are subject to quota restrictions. These restrictions are, however, imposed to safeguard the balance of payments and not to protect United Kingdom industries from foreign competition. If we were to cut our traditional imports of cloth more severely than our payments position warrants, we should damage our commercial relations with the supplying countries and endanger the markets which they provide for our exports of manufactured goods.