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CONFIDENTIAL
Draft telegram to Washington repeat Ukmis New York,
Brussels, Geneva, Paris.
Cotton textiles
My telegram gives the text of a statement to be made
in the House by the President of the Board of Trade at
on
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The greation port of our existing preferential Inargis for consuntives
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GATT does not require us to
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2.
Please hand a copy to State Department and to Nehmer.
The proposal to replace the quotas by a moderate tariff
represents a major change of policy, and you will wish to
emphasise the boldness of the nove The industry-will-have
to reduce ite costs considerably by lot January 1972 to
compete behind a 15 per cent tariff without quotes,
emphasise the extent to which British industing
would need
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You
we are
should therefore zaject any suggestion that wine
performance in order to stand up to competition doing is protectionist. Indeed, we hope it will encourage without-beneft a quota limitations by that date. We ho our trampol
Jay C.mm 6.4 et other developed countries to rely on tariffs for protection
rather than on quotas.
3. There is no parallel with the proposal that the U.S. efforts to get- the LTA intended to ever non a cotton ortles
should take advantage of the open period to increase tarifA
We have given no bindings in GATT to maintain our preferent-
ial nil duty on cotton textiles; and the Commonwealth rate:
we propose to introduce are moderate, not excessively
protectionist.
We are importing one-third of our consumpt-
ion from the developing countries and expect proportion to
remain at least as high as this under a tariff.
margins which existed in 1947.
CONFIDENTIAL