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CONFIDENTIAL
BACKGROUND
3. This is explained in paragraphs 2 to 4 of AE(71)35.
On 1 January 1972 we shall be introducing our Generalised
Preference Scheme, from which textiles are excluded entirely,
and at the same time changing our import policy on cotton
textiles from one based on quota restrictions to one based on
a tariff. The Community GPS scheme, to which we have to
adapt, incorporates duty-free quotas for textiles as a whole,
though with special and more restrictive arrangements for cottons
involving overall limits. We are therefore faced on cotton
textiles with the awkward prospect of changing back to
quantitative restrictions within a year or two of abandoning them
in favour of a tariff. We have amongst other things to decide
whether, when we re-adopt quantitative restrictions, we shall
also wish our quotas to be duty-free.
ARGUMENT
TIMING OF ADAPTATION
4.
We can accept the argument in the paper that adaptation
should be delayed until 1 January 1974, since the Community's
Generalised Preference Scheme is expressed in terms of the
Common External Tariff, to which we shall only start to move
on that date. We have reason to suppose that this date for
adaptation will be acceptable to the Community, provided
always that we do not raise too many difficulties in other fields,
which might make them less forthcoming.
COTTON TEXTILES
5. We have to decide whether we can accept, as the
Community expects us to do, inclusion from the date of our
CONFIDENTIAL
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