CONFIDENTIAL
CYPHER/CAT A
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE TELEGRAM NUMBER 473
CONFIDENTIAL.
NEUTRAL.
56
TO HONG KONG
21 JULY 1969 (HKK 6/548/8)
166
TOP COPY
YOUR TELEGRAM NO. 567: U.K. TEXTILE COUNCIL REPORT.
YOU WILL BE RECEIVING BY TELEGRAM THE TEXT OF THE STATEMENT ON FUTURE COTTON TEXTILES IMPORT POLICY TO BE MADE IN PARLIAMENT BY PRESIDENT OF BOARD OF TRADE AT 3.39 P.M. ON TUESDAY, 22 JULY.
2. WE REALISE THAT THE INITIAL REACTION OF YOUR INDUSTRY TO THIS DECISION WILL BE UNFAVOURABLE, AS YOU HAVE ALREADY INDICATED IN YOUR TELEGRAM UNDER REFERENCE. WE SHALL NATURALLY BE PREPARED TO
LISTEN TO ANY FURTHER VIEWS YOU MAY WISH TO EXPRESS IN THE LIGHT
OF THE PRESIDENT'S STATEMENT.
3. YOU WILL NOTE THAT THE TARIFF WILL NOT TAKE EFFECT UNTIL 1 JANUARY
1972. YOUR RESTRAINT ARRANGEMENTS EXPIRE AT THE END OF 1970, AND WE
SHALL SEEK YOUR AGREEMENT TO EXTEND THEM FOR A FURTHER YEAR.
4. PROVIDED U.K. INDUSTRY BECOMES MORE EFFICIENT, WE MUST EXPECT THE REPLACEMENT OF QUOTAS BY A TARIFF TO REDUCE THE LEVEL OF IMPORTS BELOW WHAT IT WOULD BE IF WE CARRIED ON WITH A QUOTA SYSTEM CN EXISTING LINES. BUT OUR STUDIES SUGGEST THAT THE MAIN LOSERS SHOULD BE THE DEVELOPED COUNTRIES. WE WOULD EXPECT THE TRADE OF
DEVELOPING COUNTRIES AS A GROUP TO BE ABOUT THE SAME OR MARGINALLY LESS THAN IF THE QUOTA SYSTEM IS RETAINED. WE ARE IN EFFECT
REPLACING ONE METHOD OF PROTECTION WITH ANOTHER.
CONFIDENTIAL
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