{
9.
SECRET
IN CHOOSING TO MAINTAIN EXISTING RESTRICTIONS THE BRITISH
GOVERNMENT HAVE ALSO BEEN INFLUENCED BY THE VIEW THAT THIS IS
LIKELY TO BENEFIT TRADITIONAL SUPPLIERS IN 1972: AND WHILST THE
BRITISH GOVERNMENT CANNOT OF COURSE ANTICIPATE THE PATTERNS OF
RESTRICTIONS APPLYING TO BRITAIN WHICH THE EUROPEAN COMMISSION
WILL NEGOTIATE FOR THE PERIOD AFTER 1 JANUARY 1973, IT SEEMS
REASONABLE TO EXPECT THAT SOME REGARD WILL BE PAID TO THE PATTERN
APPLYING IN THE YEAR IMMEDIATELY PRECEDING BRITISH ENTRY INTO THE
EEC. DESPITE UNEMPLOHMENT IN THE BRITISH COTTON TEXTILE INDUSTRY
THE QUOTAS FOR 1972 WILL BE INCREASED BY 1 PER CENT AS IN EARLIER
YEARS.
10. THE BRITISH GOVERNMENT ARE NOT PROPOSING TO CHANGE THE ARRANGE-
MENTS ALREADY NOTIFIED TO THE INDIAN GOVERNMENT WHEREBY COTTON
TEXTILES EXPORTED IN 1971 FROM RESTRICTED COMMONWEALTH PREFERENCE
AREA COUNTRIES AND LICENSED AGAINST THE 1971 QUOTAS BUT ARRIVING
AFTER 1 JANUARY 1972 MAY BE RELIEVED OF THE MEW TARIFF.
11. TO AVOID EXCESSIVE CONCENTRATION OF IMPORTS IN THE EARLIER
PARTS OF 1972, THE BRITISH GOVERNMENT ARE UNABLE TO AGREE THAT
EXCESS SHIPMENTS IN 1971 SHOULD BE LICENSED IN ANTICIPATION OF
THE 1972 QUOTAS. CONTRACTS ALREADY PLACED FOR SHIPMENT AFTER
1 JANUARY 1972 MUST BE ACCOMMODATED WITHIN THE 1972 LIMITS. NO
COTTON TEXTILES FROM RESTRICTED COUNTRIES WILL BE ADMITTED INTO
BRITAIN IN 1972 WITHOUT AN INDIVIDUAL IMPORT LICENCE ISSUED BY THE
DEPARTMENT OF TRADE AND INDUSTRY.
12. THE ARRANGEMENTS FOR HANDLOOK TEXTILES WILL BE THE SUBJECT
OF A SEPARATE COMMUNICATION.
3 SECRET
/13.
THE