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The British paper and board industry opposed plans to establish the Western European free trade area and the more modest EFTA, arguing that British producers would be unable to compete successfully against their Nordic rivals. The paper industry did support British entry to the EEC, but only because this was considered to be a less bad option than continued membership of EFTA. It is argued that while the British government could not fundamentally change its European policy solely because it harmed the interests of one particular industry, pressure from business and fears that increased competition would lead to increased unemployment gradually persuaded it to find ways to reduce competition. However, this policy probably encouraged many companies to delay efforts to modernise production. [ABSTRACT FROM AUTHOR]