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of suppliers like Taiwan and Korea which have been held down
by the quotas. We cannot prevent these things from happening.
We can, however, try to even out the upsurge over as long a
period as possible and so to minimise the disturbance of the
market:-
a.
by continuing to enforce the quotas on shipments
right to the end of 1971. For this it will be
necessary to retain import licensing up to, say,
31 March 1972 so as to keep out goods shipped before
the end of 1971 in excess of the quotas. (We would
not, of course, limit goods shipped after 1 January
1972.) Without such an arrangement quotas would
effectively break down some months before the end of
this year and the peak of the first unrestricted imports
would occur two months or so earlier than if the quotas
were enforced to the end;
b. by giving the duty relief which I am here proposing.
This would distribute arrivals more evenly by removing
the incentive to CPA shippers to bring forward all
their quota deliveries into 1971. We should also make
it easier for the CPA supplier countries concerned to
accept. the tiresome extension of export certification
and import licensing procedures into the first quarter
of next year, which would be necessary to achieve a.
Hong Kong has on its own initiative already asked for
this duty relief.
We can implement a. under existing powers but I am advised
that we cannot achieve b. without taking powers; and a. without