IMMEDIATE
CYPHER/CAT A
FM FCO 29125ZZ
SECRET NEUTRAL).
DESKBY 301302Z TO ALL
SECRET
(or)
TO IMMEDIATE NEW DELHI TELEGRAM NUMBER 1487 OF 29 NOVEMBER AND TO CERTAIN POSTS. INFO IMMEDIATE CANBERRA, CTTAWA WELLINGTON, WASHINGTON, UKIEL OECD, UKMIS GENEVA, TOKYO, BOMBAY, KARACHI.
COTTON TEXTILES
1. MINISTERS ARE CONSIDERING A PROPOSAL THAT, IN ADDITION TO THE PROPOSED NEW TARIFFS ON IMPORTS OF COTTON TEXTILES, A SYSTEM OF QUOTA CONTROLS ON BROADLY THE PRESENT PATTERN SHOULD BE RETAINED DURING 1972.
2. IF A DECISION IN THIS SENSE IS TAKEN, IT COULD BE ANNOUNCED IN PARLIAMENT ON 30 NOVEMBER.
3. THIS WOULD LEAVE VERY LITTLE TIME FOR THE NOTIFICATION OF THE CHANGE OF POLICY TO THE GOVERNMENTS CONCERNED. THIS TELEGRAM, TOGETHER WITH A SUPPORTING TELEGRAM, IS THEREFORE BEING SENT TO YOU NOW ON A CONTINGENCY BASIS, BUT YOU SHOULD TAKE NO, REPEAT NO, ACTION, PENDING FURTHER INSTRUCTIONS.
4. IF THE DECISION TO RETAIN QUOTAS IS TAKEN, IT WILL BE ANNOUNCED IN THE DEBATE ON THE IMPOSITION OF THE NEW TARIFF ON IMPORTS OF COTTON TEXTILES FROM THE COMMONWEALTH PREFERENCE AREA THAT THE UK HAS DECIDED NOT TO REMOVE AT THE END OF 1971 QUANTITATIVE
RESTRICTIONS ON COTTON YARN AND WOVEN COTTON TEXTILES EXPORTED FROM HONG KONG, INDIA ARE THE GLOBAL QUOTA COUNTRIES AS HAD BEEN INTENDED INSTEAD, WE INTEND TO CONTINUE THE PRESENT QUOTA SYSTEM AT LEAST UNTIL THE END OF 1972. THE TARIFF ON IMPORTS FROM THE COMMONWEALTH PREFERENCE AREA WILL, SUBJECT TO PARLIAMENTARY APPROVAL BE INTRODUCED AS ANNOUNCED. IT WILL BE NECESSARY TO INFORM GOVERNMENTS OF MAJOR SUPPLYING COUNTRIES OF THE CHANGE IN POLICY AND TO SEEK THE CO-OPERATION OF THE GOVERNMENTS OF INDIA, HONG KONG AND COUNTRIES HAVING COUNTRY QUOTAS TO CONTINUE TO ADMINISTER THE RESTRAINTS AS THEY DO AT PRESENT. A SUPPORTING TELEGRAM CONTAINS THE TEXT OF AN AIDE MEMOIRE EXPLAINING THE DECISION AND SEEKING THE CO-OPERATION OF COUNTRIES WHERE THIS IS NECESSARY.
/5. WHERE