(134392) Dd. 737115 750m 4;70 Hw.
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Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted. Unclassified.
PRIVACY MARKING
In Confidence
DRAFT
Хатай
To:-
SECRETARY OF STATE'S VISIT TO HONG KONG
Type 1 +
From
Telephone No. & Ext.
!
Department Commodities
COTTON TEXTILES
t
Since 1962, British imports of cotton yarn and woven cotton textiles from developing countries have
been subject to quota restrictions. India and Hong
Kong have bilateral quotas and there is a global
quota for all other developing producers.
In 1969
HMG accepted a recommendation of the Textile Council
to discontinue these quotas with effect from
1 January 1972 and to impose a tariff on imports
from the Commonwealth Preference area. It was made
clear at the time, however, that, recourse to quotas
might be resumed if total imports rose above present
levels to the extent of causing disruption of our own
production of particular products.
2. On 8 December) (overseas governments were informed on 1 December) 1971 Ministers decided that
we should have both tariffs and quotas in 1972. The
reasons were the unemployment situation in Lancashire;:
we should have to operate quota restraints when we
joined the EEC; the risk of diversion of textiles
to Britain as a result of American agreements with
Asian suppliers of non-cotton textiles; and the
evidence of a large build-up of orders already in the
pipeline for 1972.
1/3.