hmm, in the UK I'm not sure. I saw your recent post on Liberty of London--they don't have any?! It looks like a huge selection of knitting supplies! Most yarn shops I've been to carry cotton yarn so I would bet it won't be hard to find :)
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Liberty's have cotton yarn but quite high quality, expensive for a washcloth that may not be around for long. The Knitting & Stitching Show is coming up soon, I'll have a look at the suppliers there.