TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 111

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Private Secretary to Secretary of State for brade & Industry, ✅

CCC Tickell Esq HVO

Private Secretary to Mr Rippon

Sir Willian Nield, Cabinet Office

AN COMMITTEE: COTTON TEXTTIMS AND THE GEMEKALISED TREFERER-OL SC.ILME

1. Since Mr Wood, who is at present away in Paris, will be unable to

attend next Monday's meeting of the AE Committee, which will discuss paper AL(71)35, he has asked me to put to you his views in writing and to request that the Secretary of State should bring these to the

attention of the Cormittee during its discussions.

2.

Hr Wood has no comments upon the proposed date of 1 January 1974 at which we would begin to align our Generalised Preference Scheme

with that of the Six. 'But us regards cotton textiles, he feels that

the Secretary of State would wish to take into full account, not only

the political damage which would be caused to our relations with Gommonwealth developing countries by the imposition of quantitative restrictions; in addition to a tariff, in 1973 (and perhaps earlier) but the damage to their economies and to their prospects of continued

development in this important sector.

3. The switch from quotas to tariff protection next year will

probably mean that India loses over 16% of its total cotton textile

exports to Britain in 1972 (about £2.0 mn) and, on top of this, revenue

owing to our inposition of duties,coming to about £1.5 mn. Hong Kong

is expected to keep its share of our imports (the total of which is