TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 134

same time, however, we would hope to do our best, within the limits

of our obligations under the LTA and the GATT, to take account of the

reasonable interests of other overseas suppliers, including Hong Kong,

I must, whose situation might have been affected by the disruption.

however, stress that we are only setting down these considerations in

response to requests from your representatives and not because we ourselves

expect situations to arise in which we are compelled to resort to

widespread quota restrictions as a result of disruption to our market.

6. In paragraphs (g) and (h) you put forward the view that the

imposition of the tariff without decalage represents unfair discrimina-

tion against exporters of cotton textiles and that uncertainty and

disruption would be minimised by a postponement of the imposition of

the tariff until the outcome of our application to join the EEC is

known. The introduction of the tariff on imports of cotton textiles from

the Commonwealth Preference Area is not being undertaken as part of a

process of alignment with EEC's Common External Tariff and we do not?/

In our view it

therefore admit the suggestion of discrimination.

represents the substitution of tariff protection for quantitative

st restrictions in which the tariff has been fixed at the lower practicable

rate. There is therefore no scope for a phased introduction of the duty

which, since in the early stages it would offer virtually no protection,

would necessarily have to be accompanied by a continuation of the

quota system. Nor can we accept that a postponement of the change until

the outcome of our EEC application is known would remove uncertainty or re-

6