TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 105

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be an initial scramble for market shares on the part of suppliers

like Taiwan and Korea which have been held down by the quotas.

We can, however,

We cannot prevent these things from happening.

try to even out the upsurge over as long a period as possible

This spread

and so to minimise the disturbance of the market.

could be achieved:

a. by continuing to enforce the quotas on shipments right

to the end of 1971. For this it will be necessary to

retain import licensing up to, say, 31 March 1972 so

as to keep out goods shipped before the end of 1971

in excess of the quotas. (We would not, of course,

Awal

b.

limit goods shipped; after 1 January 1972.) Without

such an arrangement quotas would effectively break

down some months before the end of this year and the

peak of the first unrestricted imports would occur

two months or so earlier than if the quotas were

enforced to the end;

if we could give the duty relief proposed above. This

would distribute arrivals more evenly by removing the

incentive to CPA shippers to bring forward all their

quota deliveries into 1971. We should also make it

easier for the CPA supplier countries concerned to

accept the tiresome extension of export certification

and import licensing procedures into the first quarter

of next year, which would be necessary to achieve a.

Hong Kong has on its own initiative already asked for

this duty relief.

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