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3. AS THE TARIFF WILL NOT TAKE EFFECT UNTIL 1ST JANUARY, 1972, AND AS THE GOVERNMENTS OF ALL COUNTRIES AFFECTED IN THE C.P.A. WILL CLEARLY WANT TO HAVE VERY FULL DISCUSSIONS ABOUT THE CHANGE, YOU WILL WISH AS FAR AS POSSIBLE TO AVOID DETAILED DISCUSSION AT THIS
STAGE. WE ARE SUGGESTING TO BOARD OF TRADE MINISTERS THAT THEY SHOULD SPEAK PERSONALLY TO THE HIGH COMMISSIONERS OF CANADA, AUSTRALIA, NEW ZEALAND, SINGAPORE, MALAYSIA, JAMAICA, INDIA, PAKISTAN, MALTA AND CEYLON, AND ARRANGEMENTS WILL BE MADE FOR OFFICIALS TO SPEAK TO APPROPRIATE REPRESENTATIVES IN LONDON OF
SOUTH AFRICA AND CYPRUS.
4. MEANWHILE, YOU MAY MAKE USE OF THE FOLLOWING POINTS AT YOUR
DISCRETION:
(A) WE HAVE HAD FULLY IN MIND THE IMPORTANCE OF TEXTILE EXPORTS
TO THIS COUNTRY FOR SOME OF OUR COMMONWEALTH TRADING
PARTNERS PARTICULARLY AMONG THE DEVELOPING COUNTRIES.
THE TARIFF PROPOSAL WILL BE FULLY DISCUSSED WITH THE COUNTRIES
WHICH ENJOY CONTRACTUAL RIGHTS AND WE SHALL NATURALLY BE PREPARED TO LISTEN TO THE VIEWS OF OTHER COMMONWEALTH COUNTRIES AND TERRITORIES, THE PRESENT QUOTA ARRANGEMENTS EXPIRE AT THE END OF 1970, THREE MONTHS AFTER THE CURRENT LONG-TERM ARRANGEMENT, AND WE SHALL SEEK THE AGREEMENT OF THE CONTRACTING PARTIES TO THEIR EXTENSION FOR A FURTHER YEAR. (B) PROVIDED OUR INDUSTRY BECOMES MORE EFFICIENT, WE EXPECT THE
REPLACEMENT OF QUOTAS BY A TARIFF TO REDUCE THE LEVEL OF OUR IMPORTS OF COTTON TEXTILES BELOW WHAT IT WOUWD BE IF WE CARRIED ON WITH A QUOTA SYSTEM ON EXISTING LINESM. BUT OUR STUDIES SUGGEST THAT THE MAIN LOSERS SHOULD BE 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 WERE RETAINED, ALTHOUGH WITH SOME RE-DISTRIBUTION BETWEEN SUPPLYING COUNTRIES. WE ARE, IN EFFECT REPLACING ONE METHOD OF PROTECTION WITH ANOTHER.
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