TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 109

2

of suppliers like Taiwan and Korea which have been held down

by the quotas. We cannot prevent these things from happening.

We can, however, try to even out the upsurge over as long a

period as possible and so to minimise the disturbance of the

market:-

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, 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;

b. by giving the duty relief which I am here proposing.

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.

We can implement a. under existing powers but I am advised

that we cannot achieve b. without taking powers; and a. without