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In reaching this decision I have taken full account of the
fact that a number of countries in the Commonwealth preference
area have rights to duty-free entry into the U. K. market;
and I shall now initiate discussions with the Governments
concerned with a view to securing their acceptance of our
decision. I am equally conscious, on the other hand, that
Cotton textiles have long been treated internationally as a
special case; and I must make it clear that this decision will
not create a precedent for further departures from our
traditional policy in regard to Commonwealth goods in advance
of any general change of system which may be required by our
entry into the E. E. C.
:
8. The effect of the new arrangement should be to reduce imports
from the developed countries which have benefited markedly from
the existence of quota restrictions on imports from the
developing countries. There is no reason to think that,
with the exception of India, the developing countries of the
Commonwealth generally would be able to export less to Britain
over a tariff of this amount than they would with a continuance
of the quota system. So far as India is concerned, the
Government will, when the time comes to determine the level
of aid to India after 1972, take into account, against the
background of India's general aid requirements at that time,
any adverse effects arising from the tariff.
19.
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