TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 98

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Lancashire if we had done nothing to anticipate it;

and we could expect strong pressure for the reimposition of quotas which would both frustrate HMG's declared purpose of fostering a cotton textile industry able to live with tariff protection alone and damage the trade interests of developing countries.

The continuation of export certification will not be popular with exporting countries, and the denial of tariff relief will be a disappointment to Hong Kong. ( They will however be able to avoid the double penalty of duties of quota goods by shipping early enough.) We shall also have to give very clear warning that goods shipped in excess of quotas in 1971 are liable to seizure.( a highly unpopular proceeding when import control is being phased out)

if some suppliers and their customers are to be deterred from chancing theit arm.

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I should be glad to have your confirmation that, for the reasons set out in paragraph 3, we should enforce the quotas up to the end of this year.

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