}

COFTTES/TIAL

c) even though the Irish Republic would continue to enjoy duty is entry on cotton textiles, under the A.I.F.T.A. Agpoemont, we should have to nogoblato with her changes in the present origin rules in order to prevent divorzien of Commonwealth tride through the Irish Republic;

other nections of British industry (for eximple the wool boxilla, cutlery and rubber footwear) affected by (ox alraid of) cimilar competition from the Coumonoulth would probably proso for cinilor trestment, although no would resist any such claims;

c) there would be problems of Custons Administration.

Commen Karket/Generalised Preferences

14 73.

Compared with the situation which existed when the foxtile

Council published their Report, and when we initially began

consideration of its recommendations, recent events in France

appear to have improved the prospects that we may succeed in

joining the Community.

15 14. By January 1, 1972, we may expect the Community to have

adopted a com.on commercial policy on cotton textiles under which,

assuming the L... is still in existence, they may have commen

quotas against the more competitive low cost suppliers at least

on many, if not most, types of cotton textiles. Even if they

have not got to the stage of adopting common quotes we may expect

that the quota restrictions will have been harmonised through the

Community. Moreover, if they go aboad with their proposals on

generalised preferences they would be concoding duty free entry

on imports of cotton textiles cubject to quota from developing countries (although probably not on imports from Hong Kong). It

may be argued, therefore, that we should in any else be obliged

to impose the common extornal tariff on importo of cctton textiles

from the Commonwealth and Le obliged, in addition, to reimpose

restrictions in conformity with those in force in the Community

/az a

CONFIDENTIAL

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