CONFIDENTIAL
hav argued that tariffs would enable reasonably
efficient developing countries to maintain if not
increase their trade. To go back on these comments,
even before we have had experience of tariffs, would be
a denial of the frequent affirmations of the new policy.
It has to be recognised that there is a possibility
that, once the ldc's get over their indignation that we
were to continue q.r.s, they might see certain
advantages in cooperating. The Commonwealth would be
glad to see Korea and Taiwan held down and because the
system would guarantee the continuation of the present
pattern of trade.
Consignment licencing
18. This would be essentially an "early warning" system;
to introduce it, we should need to carry out
consultations under Article 3 of the LTA. The DTI
regard this system as being too cumbersome and unlikely
to be effective before mid-1972. Even though they
suggest no alternative (eg possibly quicker Customs
returns) for administering such a system, delay of this
necessarily be
would
order does not seem critical. If action on imports is
really necessary, June would provide sufficient time
to assess how the new policy was working; the economy
should be creating much greater demand and the over-
seas countries could not claim that we had not given
the policy a fair run.
Continue specific licensing
19. The main objection to this system, in addition to
the general arguments against any extension of qrs and
is that
tariffs, /such a return to global quotas (after aband-
oning them on 31 December 1971) would be an infringe-
ment of the provisions of Article 3 of the LTA.
CONFIDENTIAL
Man-made
NOTHING TO BE WRITTEN IN THIS MARGIN