TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 78

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NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret Sceret:

Confidential.

Restricted

Unclassified:

PRIVACY MARKING

In Confidence

DRAFT

To:-

The Chancellor of the

Exchequer

Type 1 +

From

79

Secretary of State

Telephone No. & Ext.

Department

co

Minister for

Trade

IMPORT OF COTTON TEXTILES

TARIFFS ON 1 JANUARY 1972

TRANSITION FROM QUOTAS TO

While I fully understand the very real difficul

to which you referred in your reply of 20 April to

Michael Noble's letter of 5 April, I must express my

serious concern over the implications of not giving

temporary relief to developing countries in the

Commonwealth Preference Area, as he proposed.

As you know, India, Pakistan and Hong Kong have always objected strongly to the decision to impose

duties on Commonwealth cotton textiles, and have claimed

that we have failed to take proper account of the impact

of that decision on their trade. I do not think that

it would be possible to secure time for a special Bill,

so that your decision will mean making them face an eve.

worse situation at the time of the changeover than they

had expected. This will obviously sharpen their

objections considerably.

The timing is especially difficult.

We are about

to have talks with the Indians, to try to obtain the

necessary waiver of the Trade Agreement; and we are in

the middle of difficult negotiations with the Hong Kongg

Government on the size of their defence contribution

for the next five years. In these latter talks, with

the agreement of the Treasury and the Ministry of

GOTRIDENTA