(To India)
The quota for India in 1972 will be the present 13 month quota scaled down to 12 months and increased by 1% according to the usual formula. We can only agree to discussions with the Indians on the continuation of quotas if they can be held in London during December. We cannot hold out any prospect of change in the new tariff treatment of cotton textiles from India. The terms of our offer of aid to India in respect of damage suffered by her trade are unaffected by the continuance of quotas. A major factor in our decision to retain existing quotas rather than imposing new restrictions has been our desire as far as possible to preserve the access to our market traditionally enjoyed by India. Arrangements will be made to continue the exemption of handloom cotton textiles from the quotas' and we shall also proceed with our intention to make suitable arrangements for according duty free entry to genuine traditional· handloom cotton and silk products.