CODE 18-77
Reference...
T 11649
Miss Lowne, CT1.
cc: Mr Whaley
H
T
Mr McMeekin
CR4
Mr Forward
T
Mr Sinclair CR4
Mr Bentliff T
Mr Woodruff
CR4
Mr Gray Mr Kemmis CR1 Mr Toms Miss Lackey CR2
CR1
Mr Nicoll
CR5
CR2
Mr Magor Mr Dexter
'CR5
Mr Barry · CR3
Mr Lambert
Mr Dick
CR3
FCO Commodi- ties Division FCO Hong Kong Department
Mr Gildea
CR3
Mr Ridley
CT
Mr Billingham CT
COTTON TEXTILES: TRANSITION FROM QUOTAS TO TARIFFS
1. I spoke to you about the draft telegram enclosed with your letter of 11 June. We agreed first that, as soon as the clause has been tabled, the posts should be given definite instructions to inform the governments to which they are accredited of the proposed arrangements, and that they should make it clear to them that it will be necessary for them to continue export certification right up to the end of this year and to ensure that all exports of the restricted goods effected this year are within quota.
2. We also discussed Mr Bentliff's inconvenient discovery that the date shown on the export certificates, when a date is shown (and this is not always the case), is the date of loading on to the ship and not necessarily the date of actual export. We agreed that we should only be making a rod for our own backs if we were too pernickety about verifying the precise date of which the ship left the port before granting export relief. If a country has reserved part of its quota for a given export and, owing to some unfortunate delay in the departure of the ship, the shipment leaves a day late, they would
The basic feel very aggreived if they were refused tariff relief. intention is after all that we should not impose the double penalty of tariff and quantitative restriction. We agreed, therefore, that we should continue to act on our original assumption that the date on the export certificate was the date of export, and should authorise tariff relief if that date was before 1 January 1972 and the quota had not been exceeded. I suggest the following amendments to your draft, some being of a very minor drafting nature
a) Paragraph 1, line 1, amend to
"We expect shortly to table a new clause to the 1971
Finance Bill seeking powers to ......
11
b) Paragraph 1, line 2, amend "shipped" to "exported".
c) Paragraph 1, line 4, insert after "1 January 1972"
"We will telegraph as soon as the clause has been
tabled so that you may then inform the government to which you are accredited."
d) Paragraph 2, first sentence, re-cast as follows
"The present quota restrictions will be removed on exports of cotton textiles to the United Kingdom after 31 December 1971 from India, Hong Kong, and global quota countries."
e) Paragraph 3, first sentence, amend to read
"As soon as you receive our telegram reporting that
the clause has been tabled, please inform the government to which you are accredited, making the following points:"