publicise our reply.
8.
CONFIDENTIAL
While the above is the only realistic solution in the
circumstances, the Committee should be made aware that the
reaction in the Commonwealth to the unmoderated addition of
They
quantitative restrictions to our tariffs would be highly adverse.
HMG will have to be prepared to meet heavy criticism.
will be able to rebut this to some extent, e.g., by pointing
out that the late date for adaptation which we shall have
achieved would have been at risk had we sought derogation on
quantitative restrictions. But at best there will be rough
passages.
9.
India in particular (and also Hong Kong)
and also Hong Kong) are likely to
accuse us of a breach of faith in that they will find themselves
back in a situation where quotas and tariffs apply, where their
quota will be greatly reduced and no longer duty free. And
this accusation will have some force if we cannot demonstrate
that we have endeavoured to accommodate them. We have assured
them on a number of occasions that their fears were groundless,
most recently in the bilateral discussions on cotton textiles
in May this year. In eventual detailed negotiations, therefore,
we should consider bringing the circumstances of the Asian
Commonwealth countries to the attention of the Community, with
a view to their obtaining special treatment.
OTHER COTTON_TEXTILE PROBLEMS
10.
Although we shall thus fall in with Community practice on
the reintroduction of quantitative restrictions, there are
other related problems which it will be up to us to decide for
ourselves. The most important of these are:-
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/a)