TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 141

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that the present quota restrictions are operated with reference to the date

I.

of shipment from the exporting country while the new tariff will fall due on-the

date on which goods are imported into the United Kingdom.

I

So goods which are

shipped from restricted Commonwealth countries before 31 December

1971, but do

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not arrive in the UK until after 1 January 1972, will be subject both to

quota restriction and to the new tariff.

3 In principle the change from quota protection to tariff should be brought

about in such a way that no goods from the Commonwealth are subject to both -

forms of protection; we have always resisted the idea of double protection for

our industry. In addition our major Commonwealth suppliers will probably regard

this fortuitous consequence of the administrative arrangements as adding to

LAC O LOD

the injury which some of them claim they will suffer from the switch to tariffs.

t

We have already received representations from Hong Kong on this point and we

may anticipate that India and Pakistan at least will have strong feelings. At

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first sight, the simplest way to avoid this would be to accept all cotton

A.

importsi arriving in the UK after 1 January 1972 on payment of duty regardless of whether they were in excess of the export restraint, levels for 1971. After

careful consideration in CT Division, however, we have come to the conclusion

that this course is open to serious, objections.

4 i

1

J

A

£

In the first place we would be conniving at a breach of restrictions

which were still in force. It would, moreover, be open to our non-Commonwealth

restricted suppliers to exceed their ceilings for 1971 if we ceased to police

these after the end of this year so that they would benefit from the situation

even though they do not stand to lose from the introduction of the CPA tariff;

there would "therefore be no relative advantage for our Commonwealth suppliers

over their most. important competitors in this solution. But the principal

objection is the quantities of imports that could result. Our Asian suppliers,

who account for the bulk of restricted imports, may require anything from one

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