TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 35

Separate copies to:

Heads of:-

CONFIDENTIAL

European Integration Department Hong Kong Department

Trade Policy Department

South Asian Department

Western European Department Southern European Department

Planning Staff

Far

Eastern Dept.

BRITISH TEXTILE POLICY

1. When Ministers agreed at the meeting of the Ministerial Committee on the Approach to Europe on 25 October on the adaptation of our textile policy to the EEC (FCO telegrams Nos. 131 and 130 to CODEL Brussels), they also agreed that the Secretary of State for Trade and Industry would again review the decision to impose tariffs instead of quotas from

1 January 1972 on cotton textile imports from the Commonwealth.

2. In fact the DTI at official level had already started their own review on this subject in the light of approaches from British textile manufacturers and the recent agreements on textiles between the USA and the 4 major Asian suppliers.

3. The DTI are broadening their review to include other

Departments and Mr Ridley is to chair a meeting on 3 November to discuss the various options. A number of papers have been, or are being, prepared for this meeting; the most significant (of

which I attach copies) are:-

(i)

(ii)

a Note by Mr Ridley of 22 October on the various

options;

Minutes of the DTI Working Party of a meeting on 25 October (which inter alia add to the list of options in Mr Ridley's paper);

and

(iii)

a preliminary paper on the international obligations

we should need to bear in mind if we decided to

change our policy.

4. At this early stage of departmental discussions, it is

impossible for me to seek your agreement to what might be the

view of the FCO as a whole. In the main, I find Mr Ridley's

Note an extremely fair assessment, not only of the options but

•

/also

CONFIDENTIAL