TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 43

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35

RECEIVED IN REGISTRY No.51 21 MAY 1971

1161/60/548/5

Arabian Department

Atlantic and Indian Ocean Department

Pacific and Dependent Territories Department

South West Pacific Department

West Indian Department

Hong Kong Department

Caribbean Department

Miclewley. For

спишеть

COTTON TEXTILES: MOVE FROM QUOTAS TO TARIFFS

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En

21),

1. In preparation for the transition from quotas on cotton textiles to a tariff on 1 January 1972 we have been having talks with the Indians to try to obtain from them a waiver of their preferential rights on cotton textiles under the Anglo Indian Trade Agreement 1939.

2.

So far the Indians have not moved and the final outcome may be that we shall have to terminate the Agreement. In order that the tariff may come into operation by the due date, six months notice of the intention to terminate, under Article 16 of the Agreement, will have to be given on or before 30 June 1971. The Indians mentioned the possibility of termination and suggested that this could cause us legal difficulties with those British dependent and successor territories covered by Articles 8, 11, 12 and 13 of the Agreement.

3. I attach a copy of the Deputy Legal Adviser's observations on this point. I should be grateful to know whether you will wish to consult the governments of any of the territories concerned before notice of termina- tion is given (if Ministers so decide).

4. I also attach a copy of the Anglo Indian Trade Agree- ment.

20 May 1971

ENC

ME Heath

Commodities Department

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