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.