Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

DRAFT

To:-

Type 1 +

From

Telephone No. & Ext.

Department

EEC NEGOTIATIONS: THE ASSIMILATION TO COMMUNITY POLICY ON GENERALISED PREFERENCES AND COTTON TEXTILES

DRAFT BRIEF FOR THE SECRETARY OF STATE FOR THE AE MEETING ON 25 OCTOBER

AMENDED PARAGRAPH 9(a)

Although the FCO strongly resisted the original

decision to change to a tariff policy in 1972,

our position now is that we must hold firmly to

the new policy in 1972 even against likely

pressure from British industry to supplement the

tariff with quota restrictions. We have already

had to "pay" for the new policy by agreeing

compensation for Canada; by terminating the

Anglo-Indian Trade Agreement and (in order to

prevent a bad build-up in textiles imports in the

latter half of 1971) inserted a clause in the

Finance Bill to permit delayed entry, and without

paying the tariff, in the first months of 1972.

Thus to retreat now would create more problems

than it would solve.

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