TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 194

G.F. 326

CONFIDENTIAL

4

8.

A lesser but important matter for consideration is the reported intention of the British Government to impose the new tariff on cotton woven textiles arriving in Britain on or after 1 January 1972. This would mean that duty would be payable on most shipments made in the last two months of 1971 in accordance with the restraint arrangements recently affirmed by the extension of the present Heads of Agreement. I consider this to be inequitable and inconsistent with the spirit of the arrangements. If such a policy were to be pursued I should expect some compensatory adjustments to be made to the arrange- ments for 1971 and this is a specific matter I should like discussed at the proposed talks.

HICK6/548/8 1965/19.

(36

1460

576

You are aware from my telegrams 511 of 27 June 1969, 567 of 18 July 1969 and 568 of 18 July 1969 of the concern felt by textile interests here at the time the report was published and the difficulties I experienced then. This concern is still very real. I therefore feel very strongly that this decision merits reconsideration in the light of the developments that have taken place since it was made and that can now be anticipated.

10.

I should be grateful to know as soon as possible the date you suggest for these consultations.

CONFIDENTIAL