TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 173

CYPHER/CAT A

CONFIDENTIAL

PRIORITY FOREIGN AND COMMONTALTH OFFICE

DIN

TELEGRAM NO 714

Textiles.

TO NEW DELHI

15 JUNE 1969

25

51

(MCC 13/548/1)

30 JUN 1969

JUN

CONFIDENTIAL.

NKK6/548/8

ADDRESSED TO NEW

DELA

TELEGRAM NO 714 OF 16 JUNE AND TO RAWALPINDI

ALPINDI

OTTASA CANDERKA KUALA LUMPUR SINGAPORE COLON KINGSTON LAGOS NICOSIA VALLETTA NA19631 PORT OF SPAIN AND PRETORIA,

MY GUIDANCE TELEGRAMS NOS 76 AND 77 CF 1 APRIL.

TEXTILE COUNCIL REPORT ON U.K, COTTON AND ALLIED TEXTILE

INDUSTRY.

WE EXPECT TO EMBARK SHORTLY ON INTER-DEPARTMENTAL DISCUSSIONS ABOUT THE TEXTILE COUNCIL'S RECOMMENDATIONS.

2. WHEN CONSIDERING THE CASE FOR THE IMPOSITION OF A TARIFF ON COMMONWEALTH COTTON TEXTILES AND THE EVENTUAL WITHDRAWAL OF THE QUOTA PESTRICTIONS, WE THINK THE FOLLOWING POINTS SHOULD BE

INCLUDED:-

(A) THE EXTERNAL POLITICAL IMPLICATIONS OF TARIFF ACTION AGAINST THE DEVELOPING AFRO-ASTAN COMMONWEALTH, WHILST LEAVING UNSCATHED ~ EUROPEANS, E.G. IN PORTUGAL, AUSTRIA AND THE IRISH REPUBLIC (WHO ARE EXEMPT FROM DUTY UNDER EFTA AND AIFTA);

(B) THE DOUBTFUL COMPATIBILITY WITH PART IV OF THE GATT: WITH OUR UNCTAD INITIATIVE ON GENERALISED PREFERENCES; AND WITH OUR HIGH LINE WITH THE USA OVER PROTECTIONIST MOVES THERE:

(C) THE PRECEDENT TOWARD EROSION AND PERHAPS DISMANTLING OF THE

COMMONWEALTH PREFERENTIAL SYSTEM:

(D) THE REPERCUSSIONS ON THE EXTERNAL TRADE EARINGS AND AID REQUIREMENTS OF CERTAIN COMMONWEALTH COUNTRIES AND ON OUR TRADE

WITH THEM:

(E) THE SPECIAL CONSIDERATIONS AFFECTING PARTICULAR COMMONWEALTH TERRITORIES AND THE NCED TO ASSESS THE PROBABLE STRENGTH OF THEIR

REACTION IN EACH CASE:

CONFIDENTIAL

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