Hongkong text 20
MG
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CONFIDENTIAL
бак
14/5/71
п
th.
46'
CHANCELLOR OF THE EXCHEQUER
FCS/71/38
Import of Cotton Textiles - Transition from Quotas to
Tariffs on 1 January, 1972
While I fully understand the very real difficulties to
which you referred in your reply of 20 April to Michael
Noble's letter of 5 April, I must express my serious concern
over the implications of not giving temporary relief to
developing countries in the Commonwealth Preference Area, as
he proposed.
2. India, Pakistan and Hong Kong, as you know, have always
objected strongly to the decision to impose duties on
Commonwealth cotton textiles, and have claimed that we have
failed to take proper account of the impact of that decision
on their trade. I do not think that it would be possible to
secure time for a special Bill, so that your decision will
mean making them face an even worse situation at the time of
the changeover than they had expected. This will obviously
sharpen their objections considerably.
3. The timing is especially difficult. We are about to
have talks with the Indians, to try to obtain the necessary
waiver of the Trade Agreement in order to introduce the textile
duties; and we are in the middle of difficult negotiations with
the Hong Kong Government on the size of their defence contribution
RECEIVED IN REGISTRY No.51
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5 MAY 1971
CONFIDENTIAL
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