TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 97

early next year were not shipped in 1971 in excess of the quotas, and holding over importers the threat of

seizure of goods so shipped. Without such a

measure the quotas which HMG have said would remain in

force until the end of 1971 would effectively

break down from about mis-October onwards, because so

long as goods did not arrive until the New Year there

would be no check on whether they were covered by quota

or not. There will anyway be considerable bunching of imports later this year because, without tariff relief, Commonwealth Preference Area suppliers will have every

incentive to ship the whole of their quota entitlement to

arrive this year before the tariff comes on, instead of carrying over some shipments (as is normal) into the early months of the following year. Unless the quotas are enforced

this bunching will be aggravated by the arrival, from the

very beginning of 1972, of goods shipped outside the quota in 1971 by countries and suppliers previously

held down by the quotas and scrambling (as CT Division

and importers are convinced they will) for bigger market

shares in the new unrestricted conditions.

enforcement would defer this im

Quota

for up to three

months (for distant suppliers like Taiwan and Korea) and

so spread the impact on the market.

3 It is important to spread it as much as possible.

Excessive bunching (which unless we did what we could to

check it could, in CT Division's view, mean

of up to 18 months' normal supplies in little over 12 months) would expose HMG to serious criticism from

/Lancashire