IMMEDIATE
CYPHER/CATA
FM F C O 291250Z
SECRET.
NEUTRAL.
DESKBY 301300Z.
SECRET
99
TO IMMEDIATE COLOMBO TELEGRAM NUMBER 575 OF 29 NOVEMBER
AND TO CERTAIN POSTS.
COTTON TEXTILES:
FOLLOWING IS DRAFT OF AIDE MEMOIRE REFERRRED TO IN FCO TELNO
1687 TO NEW DELHI.
YOU SHOULD TAKE NO, REPEAT NO, ACTION PENDING RECEIPT OF
INSTRUCTIONS.
2.
AS THE
GOVERNMENT WILL BE AWARE, THE BRITISH
GOVERNMENT ANNOUNCED IN JULY 1969 THAT ON 1 JANUARY 1972
GLOBAL'
A TARIFF WOULD BE INTRODUCED FOR COTTON TEXTILES IMPORTED FROM
THE COMMONWEALTH PREFERENCE AREA. THE GOVERNMENT ALSO ANNOUNCED -
THEIR INTENTION OF ENDING AT THE SAME TIME THE EXISTING
GENERAL QUOTA SYSTEM WHICH RESTRICTS IMPORTS OF COTTON YARN
AND WOVEN COTTON TEXTILES FROM INDIA, HONG KONG AND THE COMMON-
WEALTH AND NON-COMMONWEALTH COUNTRIES INCLUDED IN THE
SCHEME: AND OF CONFINING THE RE-INTRODUCTION OF QUOTAS
AFTER 1 JANUARY 1972 TO SPECIFIC CASES WHERE TOTAL IMPORTS
ROSE ABOVE PRESENT LEVELS AND CAUSED DISRUPTION TO THE MARKET
FOR THE PARTICULAR PRODUCTS CONCERNED. IT WAS MADE CLEAR
THAT THESE DECISIONS WOULD BE SUBJECT TO ANY MODIFICATION REQUIRED IF WE JOINED THE EEC.
3. IT REMAINS THE BRITISH GOVERNMENT'S INTENTION TO INTRODUCE
THE NEW TARIFF WHICH HAS NOW BEEN LAID BEFORE PARLIAMENT FOR
APPROVAL.
SECRET
4. THEY HAVE