TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 13

less than of the

is relfamed

or marginally the same as for a retained quota system. We are in effect replacing one method of protection with another..

5. The proposed rates of duty are about 61% for yarn,

15% for cloth, and 17% for garments. These rates

not far out of

are broadly in line with those of the EEC and most

other developed countries.

's

6. We intend to abolish the quota system when the tariff is introduced but you will note the President':

reservation of the right to reimposé quotas on

particular products from individual countries only if the level of imports of cotton textiles overall increases above present levels causing disruption in

our market in these products.

7. As you are aware, the UK quota system has been strongly criticised by many of the developing countries, including a number of countries in the

Commonwealth preference area, mainly because it

discriminates against countries which had not fully established themselves in the market in 1962-64, the

base period for the quotas. The pattern of categorisation is also becoming increasingly out of date. Moreover the textile cycle is expected to turn downwards in 1970, a year in which it would have been extraordinarily difficult for HMG to have let things go on as they are. It is in this context

that your attention is invited to the assurance of į

the President of the Board of Trade that we are not setting a precedent for tariffs on other Commonwealth

products: cotton textiles are, by international

consent, a special case.

(11516) Dd.392077 300m 10/68 G.W.B.Ltd. Gp.863