TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 96

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DRAFT SUBMISSION

MINISTER FOR TRADE

COTTON TEXTILES: TRANSITION FROM QUOTAS TO TARIFFS

In his letter of 20 April the Chancellor of the Exchequer said that he was unable to accede to your proposal (following my submission of 2 April) for provision in the Finance Bill to exempt temporarily from duty imports of cotton textiles from the Commonwealth Preference Area shipped under quota before the end of this year but arriving in this country after 1 January 1972 (when quotas will be replaced by a tariff on such textiles, now duty- free). You proposed this relief as one of two measures to achieve the transition from quotas to tariffs with the minimum dislocation of trade.

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16 have no choice but to accept that relief will not now be possible. Apart from anything else, it is very urgent to let importers and overseas suppliers know what the transition arrangements will be. But CT Division still believe that it will be necessary to apply the other transitional measure. This (for which no additional powers

are needed) is to enforce the existing quotas (which refer to the date of shipment, not of arrival) until the very end of 1971; it would mean

import licensing

(and certification by exporting countries) for the first three months of 1972, so as to ensure that goods arriving

/early