CELLOR OF

THE EXCHEQUER

Commoditio Dept

cc. Mr Bott

Pr/ed fothon.

Treasury Chambers, Great George Street, S.W.

01-930 1234

17 May 1971

RECEIVED IN

REGISTRY No.45 19MAY 1971

32

LAST

REF.

NOR

REF.

MC13/6

31

19

Thank you for your further letter of 11th May about the possibility of including in the Finance Bill a provision to allow temporary relief from duty for Commonwealth cotton textiles shipped under the quota arrangements.

I have considered the matter further and fully appreciate the points you and Alec Home have made. In my view our position on the Hong Kong defence contribution is a generous one and I attach importance to securing the figure which Alec mentions in his letter. Nevertheless I take the points you have both made and agree that legislation would be desirable.

I should like to avoid a final commitment to the introduction of this new clause until we can see how the Committee Stage of the Finance Bill is going. But I am prepared to agree that a clause should now be drafted with the intention of introducing it during the Committee Stage, provided that we have not run into unexpectedly rough water. If, as-I hope, it proves possible to bring it forward, I should of course look to you to deal with it, and any amendments to it.

I am copying this letter to Alec Douglas-Home.

1

ANTHONY BARBER

The Rt. Hon. Michael Noble, M.P.,

CONFIDENTIAL

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