SECRET
HAVE LONG SINCE APPLIED A COMBINATION OF QUOTA AND TARIFF PROTECTION.
DESPITE THE UNEMPLOYMENT IN THE BRITISH COTTON TEXTILE INDUSTRY
THE QUOTAS FOR 1972 WILL BE INCREASED BY 1 PER CENT AS IN EARLIER YEARS
8. THE BRITISH GOVERNMENT ARE NOT PROPOSING TO CHANGE THE ARRANGEMENS
ALREADY NOTIFIED TO THE PAKISTAN GOVERNMENT WHEREBY COTTON TEXTILES
EXPORTED IN 1971 FROM RESTRICTED COMMONWEALTH PREFERECE AREA
COUNTRIES AND LICENSED AGAINST THE 1971 QUOTAS BUT ARRIVING AFTER 1
JANUARY 1972 MAY BE RELIEVED OF THE NEW TARIFF.
9. 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.
10. THE ARRANGEMENTS FOR HANDLOOM TEXTILES WILL BE THE SUBJECT OF
A SEPARATE COMMUNICATION.
11. THE BRITISH GOVERNMENT HOPE THAT THE PAKISTAN GOVERNMENT WILL
BE WILLING TO CONTINUE TO ADMINISTER IN 1972 THE COUNTRY QUOTAS
WHICH THEY HAVE HITHERTO APPLIED SUBJECT TO THE USUAL 1 PER CENT
GROWTH. GOVERNMENTS CONTINUING TO ADMINISTER QUOTAS ARE REQUESTED TO
REGARD AS A FIRST CHARGE AGAINST THESE QUOTAS ORDERS MADE BEFORE (THE DATE OF THE ANNOUNCEMENT IN PARLIAMENT) AND CONFIRMED BY IRREVOCABLE LETTER OF CREDIT. IF SUCH ORDERS EXCEED QUOTAS IN ANY.
CATEGORY GOVERNMENT SHOULD INFORM THE BRITISH GOVERNMENT OF THE
EXCESS BUT IT MUST BE MADE CLEAR THAT THE BRITISH GOVERNMENT CANNOT
UNDERTAKE TO ADMIT IMPORTS IN EXCESS OF QUOTAS.
-3- SECRET
./12. UNDER