Aghalange de kan dit te maa
JONEL DENTIAL
from 1969 proved unable to use all hor large quoba allowance. It was recognised in the original statement announcing the new policy that India was likely to suffer and an undertaking was given that the Government would, when the time comes to determine, the level of aid to India after 1972, take into account, against the background of India's general aid requirements at that time, any adverse effects on her exports arising from the tariff. During the negotiations an offer was made to substituto for this undertaking an immediate offer of £10m aid if tho Indians agreed to a waiver. Both of theso undertakings remain open at this time and one or othor could still be taken up. contimation of existing quotas (because this is expected to protect her against unlimited competition from other more efficient low-cost suppliers) may to some extent limit the damage done to India's trade by the imposition of the new tariff, but does not of itself invalidate the offers.
TEMPORARY DUTY RELIET
Tho
25. Fowers were taken in the 1971 Finance Act to grant relief from the Commonwealth Preference Area duty for goods shipped from the restricted Commonwealth countries in 1971 but arriving in 1972. The intention of this provision was to ensure the orderly phasing of arrivals of cotton textiles in the UK; without it, exporting countries would have bunched arrivals in the last part of 1971, in order to beat the new tariff.
26. It is still the intention to maintain this transitional relief.
27.
The co-operation of the Commonwealth exporting countries in maintaining their export authorisation systems to ensure that the 1971 quotas were fully and rigorously applied till the end of 1971 - was secured by the arrangements to provide transitional relief from the duty. To go back on this public announcement of relief could damage importers who have contracted to import goods at prices reflecting the expectation of receiving duty relief and further reduce the willingness of Commonwealth countries to co-operate in administering the quotas we now intend to continue.
28. Section 2 of the Finance Act provides the Commonwealth Preference Area duty relief for those goods admitted subject to import "licences which restrict the quantity of goods which may be imported there under". Administrative action will have to be taken to ensure that the original intention of the relief is preserved ie that it should be given only to those goods shipped in 1971 against the 1971 quotas and not to any goods shipped in 1971 outside the quota limits for that year. The limits of the duty relief will be made clear to exporting countries and to importers.