CONFIDENTIAL

more staff in Import Licensing Branch. Moreover,

to take back the administration of quotas after

we had asked overseas Governments last December

to go on administering them would mean reversing ourselves yet again.

9 OPTION III would, in varying degrees, run into all the objections to both the other options. The compromise would have to be arbitrary.

CONCLUSION

Unless Ministers are prepared to accept

that the 1971 import levels are significantly

exceeded and to face the row with Lancashire,

it seems inevitable that quotas must be enforced at the cost of strong protests from

UK

overseas Governments and /importers.and users.

(with licensing outside the quotas

only where Lancashire · cannot supply)

11.

IIoLy

If you decide accordingly to follow OPTION II

you are asked further to decide whether to leave

much

the quota administration with those exporting countries willing to do so (administratively easier for

ü S a n d

less provocative to overseas

Governments), or to take back the administration

ourselves (likely to give British importers a

rather better deal).

PWR

CT Division

4 February 1972

MT Rm1107

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