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Each case of industrial protection by import restrictions was unique in the circumstances of the industry and the purposes of its protection. Although the percentage figures for the extent of manufacturing protected by import restrictions may seem high, we believe we have erred on the side of underestimation. They are certainly high enough to persuade us that it is justified to write of an industrial policy, in the qualified sense in which we have here defined policy. The different objectives for maintaining or imposing quantitative trade controls suggest the underlying reasons for that industrial policy.

This does not indicate any inefficacy of the control machinery, for in 1938 the equivalent figure had been more than 19 per cent. This machinery has been generally regarded as an accidental episode; survival in the war demanded the centralised control and rationing of all resources and after the war shortages of dollars and goods meant the system could not be immediately dismantled. As far as import controls are concerned this is quite wrong. Such controls were still proliferating at the start of 1949 and were not substantially reduced, apart from a temporary and localised episode between summer 1950 and summer 1951, until 1954.

There is no price at which an additional amount may enter and be sold, whereas even in the case of a tariff intended to be prohibitive the theoretical possibility remains that the external price will fall so far that the good could still be imported and sold more cheaply than the domestic product. Once the quota, however, has been fulfilled prices no longer come into consideration; there is no market. The Keynesian tradition has been for temporary protectionism, and by this import quotas have often been meant.

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CAS-CERN-ECFA EPS Workshop on New Devels in Particle Acceleration Techs (VOL 1)

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