CONFIDENTIAL
Mr. Carter,
K 246
HKD
Mr. O'Leary
W 139
Mr. Wiggin
K 268
S.Asian Dept.
American
Mr. Britten
G471
TPD
Mr. O'Brien
Mr. W. Wilson,
Mr. Edmonds
G65C/2 F.P.A.D.
E 308 S.African Dept.
W 70 S.European Dept. Copied to Sir A. Snelling
Mr. Combs
Mr. Robinson
Mr. Morgan
The Lancashire Textile Industry
Proposal to replace the present quota
arrangements by a tariff
Some of you will be aware that, notwithstanding our
strong opposition, Cabinet decided at a meeting on Wednesday
16 July, that the present system of comprehensive quotas on
imports of cotton textiles should be replaced by a tariff
on such imports from the Commonwealth (i.e. Commonwealth Preference Area less Irish Republic) at 85 per cent of the
most favoured nation rate from 1 January 1972.
2. The President of the Board of Trade had also proposed
that since India was expected to lose by this change she
should be compensated by additional aid. On this point
it was decided that Ministers could not decide at this
stage how much aid India should receive in 1972/73 when the
CONFIDENTIAL
60