RECEIVED IN
REGISTRY No.51 2 402071
HK26/5-48/3
15
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P
Enk & p... please
AL2714.
Wednesday, April 7, 1971 R6
NEW UK TARIFFS ON IMPORTS FROM COMMONWEALTH
Cotton Textiles, Garments And Yarns Affected
**
The British Government has decided to introduce a tariff on all
imports of cotton woven textiles and garments and cotton yarns from the
Commonwealth from January 1, 1972.
The Director of Commerce and Industry, Mr. J. Cater, announced
this at the Legislative Council today when asked by Mr. G.M.B. Salmon if
the Government was aware of the uncertainty in the trade concerning the
position of cotton textile imports into Britain arriving after December 31,1971.
Mr. Cater said this would mean that Hong Kong's exports of cotton
yarn and cotton woven textiles and garments would in future have to bear a
tariff which would still include a margin for Commonwealth Preference and
represent 85 per cent of the most favoured nation rates of duty. Cotton
knitwear which was not now subject to quota controls would retain duty
free entry.
But he said he was not yet in a position to clarify the other
uncertainty as to whether cotton textiles shipped against quotas this year
but arriving in Britain next year would have to bear the tariff.
"The Hong Kong Government has not yet received any firm decision
from the British Government which would enable me to say what the answer
is likely to be," he said.
/The British