232 Cabinet Decision 1216

24th February, 1958

CANBERRA

Without memorandum-Printed Cotton Textiles The Minister for Trade outlined to Cabinet the situation which has developed under the trade agreement with Japan in the matter of printed cotton textiles.

He indicated that in the absence of government intervention imports of printed cotton textiles from Japan in 1957-58 would greatly exceed the 1956/57 imports and will produce difficulties for Australian manufacturers.

He indicated that the matter had been taken up with Japan and that the Japanese Government would restrict exports from Japan this year to an agreed level of 20m. square yards.

The Minister indicated that this would mean that licences for at least 13m. square yards of Japanese textiles would not be effective. He also indicated that he proposed to ensure that such licences would not be used to import textiles from other countries and that no further licences would be issued for printed cotton textiles for the time being. He proposed also that the whole situation be reviewed upon the receipt of the Tariff Board's report on the printed cotton textile industry in Australia. He expected the report to be available within two months.

The Cabinet noted and endorsed the Minister's plan of action.

[AA : A571/158, 57/2093, iii]