•
must recognise that, if we insist on quotas in 1972 in addition to the tariff, a number of developing countries notably India and Pakisten will press strongly that duty-free quotas should be opened in return for their agreement to erercise
restraint.
41. There is also the question of the liability for duty of CPA goods shipped under quota in 1971 but arriving in 1972. We recommend that no change should be made in the decision (for which the enabling power has been approved by Parliament although the implementing Order has not yet been made) to give duty relief to restricted CPA goods which are in transit at the turn
of the year.
We told the countries concerned some months ago that this conccasion would be made, thus enabling them to spread shipments evenly over the full twelve months of 197. Withdrawal of the concession now, quite apart from tarnishing the UK's reputation still further, might provoke some at least of the CPA developing countries to discontinue the restraint on exports they are supposed to operate up to 31 December 1971. It would also produce bitter complaints from UK importing interests, which have planned their contracts on the basis of the assurances given them about the availability of duty relief.
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11 NOV 10/1