TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 148

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

Cypher/Cat A

IMMEDIATE

FOREIGN AND COMMONWEALTH OFFICE ΤΟ

TO WASHINGTON

Telno 1635

21 July 1969 (OD COMMOD.)

CONFIDENTIAL NEUTRAL

77

Addressed to Washington telegram No. 1635 of 21 July.

Repeated for information to U.K. Mission New York, UKDEL EEC

Brussels, U.K. Mission Geneva and UKDEL OECD.

Cotton Textiles.

My telegrams Nos. 840 and 841 to Delhi.

Please hand a copy of statement to State Department making it clear that statement is confidential until 4.30 p.m. BST on 22

July.

Text is subject to slight last minute amendments which we

may not be able to give you before statement is made.

2.

The proposal to replace the quotas by a moderate tariff

represents a major change of policy. You should emphasise the extent to which the British industry will need to improve its performance in order to stand up to competition without benefit of

quota limitations by 1972. We hope that our example may encourage

other developed countries who already have tariffs of the same order

as we now propose to levy on the Commonwealth to dispense with quotas.

3.

There is no parallel with U.S. efforts to get the LTA

extended to cover her cotton textiles. Quite the reverse. All we should be doing would be to eliminate the greater part of existing preferential margins for most countries in the Commonwealth Preference

Areas. As the Americans know, the GATT permits us, but does not require us, to maintain preferential margins which existed in 1947.

Stewart

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES D.

EEEEE

RECEIVED IN

RG

CONFIDENTIAL

75

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