TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 18

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Mr Silford

Mr Gallagher OF

Mr Laird

Mr Sutherlard

Mr Bottomley

Mr Logan

Mr Godden

Private Secretary

A

B

IMPORT OF COTTON TEXTILES

TARIFFS ON 1 JANUARY 1972

TRANSITION FROM CUOTAS TO

PROBLEM

1.

"hether the Foreign and Commonwealth Office should

accept the refusal by Treasury Vinister to include in

the Finance Bill (as proposed by the Secretary of State

and the Minister for Trade) a proposel to relieve from

duty, for the first three months of 1972, imports of

cotton textiles from developing countries in the Common

wealth preference area, which are shipped under quota i

1971 but do rot arrive here until 1972.

AFCUMENT AND BACKGROUND

2. This was set out in paragraphs 2 to 6 of Mr Heath'

minute of 27 April. Developments since thet minute hav

reinforced the argument for temporary relief from the

tariff in that the negotiations with Hong Kong over the

size of their contribution to the cost of their defence

next >

over the next years have gone badly and it is conceiv

able that HVG will need to impose an unpalatable soluti

on the Colonies.

The negotiations with the Indians to