IIIEDIATE CYPHER/CATA
FM F C 0 291250Z
SECRET.
NEUTRAL.
DESKBY 301208Z
TO IMMEDIATE ALGIERS TELEGRAM NUMBER 237 OF 29 NOVEMBER AND TO CERTAIN POSTS.
COTTON TEXTILES:
FOLLOWING IS DRAFT OF AIDE MEMOIRE REFERRRED TO IN FCO TELNO 1637 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
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 MARE CLEAR THAT THESE DECISIONS WOULD BE SUBJECT TO ANY MODIFICATION REQUIRED IF WE JOINED THE EEC.
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3. IT REMAINS THE BRITISH GOVERNMENT'S INTENTION TO INTRODUCE THE NEW TARIFF WHICH HAS NOW BEEM LAID BEFORE PARLIAMENT FOR.. APPROVAL.
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THEY HAVE, HOWEVER, COME TO THE CONCLUSION THAT, AT A TIME WHEN THE BRITISH MARKET 13 PECULIARLY VULNERABLE, THE POLICY. PREVIOUSLY ANNOUNCED OF REINTRODUCING QUANTITATIVE RESTRICTIONS SELECTIVELY ONLY IF AND WHEN SPORTS OF PARTICULAR PRODUCTS /CAUSE