§ Mr. Bidgoodasked the Secretary of State for Industry, Trade and Regional Development whether he is aware of the growing practice of placing forward orders for large quantities of cotton textiles in countries with no traditional trade with the United Kingdom; and what action he proposes to take in view of the effects of this practice not only upon the British cotton textile industry but also upon the agreements which he has made with Commonwealth and other supplying countries to limit their exports to the United Kingdom.
§ Mr. HeathYes. I have observed this development with concern. I have felt obliged to introduce certain changes in the import licensing procedure designed to provide information about the placing of forward contracts and to enable the Board of Trade to keep an effective watch on the trend of imports from new sources of supply. In future, therefore, specific import licences will be required for all imports of cotton textiles except those from our Dependent Territories and certain traditional suppliers or those which are subject to limitation agreements with the exporting countries concerned.
This change in procedure does not indicate any change in policy. Licences will be issued freely unless imports from any country affected are increasing in such a way that Her Majesty's Government find it necessary to request that country to exercise restraint on the basis of the G.A.T.T. Long Term Arrangement.