TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 144

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Reference.....

to serious criticism from UK manufacturers.

1

On top of all this the fact that

goods were continuing to enter this country free of the new tariff from the

restricted Commonwealth countries after 1 January 1972 would give offence to the

developed Commonwealth countries whose goods would be subject to duty. Despite

the desirability of giving such relief, therefore, (which Hong Kong has

specifically asked for), the objections to this course are formidable.

7 We have come to the conclusion 'that it is not a practical proposition to

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offer and operate this relief. It is of course open to supplying countries' to

avoid the double penalty of tariffs on goods still subject to restriction by

shipping their entire 1971 entitlement in sufficient time to arrive before the

imposition of the tariff.. i

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i

8 I now turn to the transitional import licensing arrangements which will be

necessary if we enforce the 'quota restrictions to the end. Goods shipped under

quota from all restricted countries may continue to arrive in this country during

the early part of 1972. It will therefore be necessary to continue issuing

import licences for these goods and I understand from Tariff Division: that this

will' mean postponing the transference of these items on to the Open General Import

Licence for this' period until, say, 31 March 1972. For the first three months

of 1972 goods from these countries will continue to be licensed as at present-

on receipt of an export licence issued by the exporting country. We shall have' -

to ask these countries to continue`issuing export licences for all goods arriving

in the UK before 31 March 1972, whether they are exported under quota in 1971 or

freely from 1 January 1972. The system would then be that import licences will

be issued for goods shipped in 1971 provided that the export licence had been a

issued against the respective quota entitlement; they will be issued automatically

for all goods for which the export licence shows that they were exported on or

after 1 January 1972. This system will be fairly simple to administer.

We shall,

however, have to make it clear to all our suppliers at present having allowances