CIPHER/CATA
FM F C O 291250Z
SECRET.
SECRET
NEUTRAL.
DESKBY 301000Z
TO IMMEDIATE CANBERRA TELEGRAM NUMBER 1214 OF 29 NOVEMBER
AND TO OTTAWA WELLINGTON BRUSSELS PARIS BONN ROME
LUXEMBOURG THE HAGUE UKDEL BRUSSELS INFO IMMEDIATE TO WASHINGTON UKDEL OECD UKMIS GENEVA AND TOKYO.
COTTON TEXTILES: FOLLOWING IS DRAFT OF AIDE MEMOIRE REFERRED
TO IN F.C.0 TEL NO 1687 TO NEW DELHI.
(FOR UKDEL EEC BRUSSELS PARIS BONN ROME LUXEMBOURG THE HAGUE REFERENCE IS MYTEL 221 TO BRUSSELS).
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
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 'GLOBAL'
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 COVERNMENT'S INTENTION TO INTRODUCE THE NEW TARIFF WHICH HAS NOW BEEN LAID BEFORE PARLIAMENT FOR APPROVAL.
SECRET
/L. THEY HAVE,