CONFIDENTIAL
8*
(3) Cotton Textiles
In addition to the common external
tariff, the Six individually restrict imports of
cotton textiles by what are in effect quantitative
controls. So do we;
but we are much more liberal
than the Six. Until such time as the Community
evolves a common commercial policy, it is for
Member States to decide their own policy on
quantitative controls on imports of cotton textiles
and other 'low cost manufactures from outside.
the Communi ty. There would therefore be no formal
hindrances to our continuing our present policy.
But we would probably be pressed by the Six to move
nearer to their policies.
Against the problems posed by particular Commonwealth
trading interests should be set the general interest that
Commonwealth exporters have in the strength of the Fritish
economy and the increase in our capacity to buy from them, and
in the influence which we can exert towards the development of
outward-looking policies among the Six. British entry into the
Community could be expected to promote Commonwealth interests
in both these ways,
and in a number of Commonwealth countries
there has been both official and unofficial support for the idea
for these reasons,
9.
ધી
There have been expressions of concern where major trading
interests are at stake But the Government's undertaking that
essential Commonwealth interests will be safeguarded has been
noted with satisfaction, and Commonwealth reaction to the present
approach has been generally realistic and more sympathetic than
in 1961.
Commonwealth consultations
10.
In any negotiation, we would be asking for adjustments and
transitional arrangements to mitigate these effects where they
CONFIDENTIAL
/harm