TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 132

continue a system of protection which we must now view as harmful to the future

efficiency of the UK industry. We do not therefore believe that these

considerations would justify a postponement of the introduction of the tariff

on 1 January 1972.

5.

Suggest

In (c) and (d) you state that the circumstances in which the decision

to impose a tariff and dispense with quotas from 1 January 1972 was taken

in 1969 have been significatly changed by the revival of the United Kingdom

application to join the EEC. In fact, Ministers had very much in mind at

the time of the original decision the possibility of eventual UK entry into

the EEC, and took this factor into account. In addition, however, the

decision was reconsidered last year after the change of government and

reaffirmed in full knowledge of the implications of the resumption of nego-

tiations with the Community. If and when the United Kingdom joins the EEC,

then we shall expect to adopt the Community's import policy in respect of

trade in textiles. It is not possible to say at what stage of transition

the change to a different import policy would be accomplished, but we doubt

Bineer whether this would be immediately on entry. In other words, we anticipate

that our policy of tariff and no quota restrictions on imports of cotton

textiles will run for at least two years from 1 January 1972 on the most

optimistic assessment of the timetable for possible UK entry into the EEC.

Equally, it is not possible now to forecast what form the Common Commercial

Policy will take at the time when we come to align with it. For one thing,

the Long Term Arrangement on Cotton Textiles will come up for renewal in

the intervening period and if by then we were members of the EEC, we would

Ye Community's goi

Di Farande in. of comme nopouto-influence-th

hope to towards-It.

Iuence-the-EC's-attitude towards it.We accept that the EEC's I the Com

miti wa kitixan polioy-will-probably-still-involve-certain-quota-restriotions-to-which-wo-

shall_have_to-conform,-but-these are likely to be different in a number of

respects from those currently operated by the UK. We therefore would not

agree that alignment with EEC policy in the event of our joining would

necessarily be easier if we decided to postpone the introduction of the

CPA tariff on 1 January 1972. In our view, the prospect of entry into the

-