CYPHER/CAT A
Textils Council.
99
CONFIDENTIAL
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 480
CONFIDENTIAL
TO HONG KONG
24 JULY 1969
(MCC 13/10)
66
FOR TRADE COMMISSIONER.
COTTON TEXTILES: MY IPT.
FOLLOWING IS TEXT OF MY TELEGRAM NO. 473 TO GOVERNOR HONG KONG,
BEGINS:-
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 3.30 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 1979, 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 ON 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
LAST
REF.
56
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IR CORYN
28 JUL 1969
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