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CONFIDENTIAL

IDENT

We are

would be unlikely to be the same as the present system. expecting some changes in the pattern of our imports from 1972 on and we cannot therefore guarantee that any subsequent reimposition of quotas will automatically preserve the share of our market currently enjoyed by each of our suppliers under the present restrictions. At the same time, however, we would hope to do our best, within the limits of our obligations under the LTA and the GATT, to take account of the reasonable interests of other overseas suppliers, including Hong Kong, whose situation might have been affected by the disruption. I must, however, stress that we are only setting down these considerations in response to requests from your representatives and not because we ourselves expect situations to rise. in which we are compelled to resort to widespread quota restrictions as a result of disruption to our market.

8.

Because of the complex legal and administrative problems involved in waiving duty on goods shipped under quota before the end of 1971 but which arrive in 1972 we cannot at present say whether arrangements can be made to meet the point which you have made. You may rest assured however that we understand the problems of the Hong Kong exporter, are urgently considering whether anything can be done and will inform you when we know the outcome.

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CONFIDENTIAL

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