TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 112

CONFIDENTIAL

2.

In September 1970 Ministers rejected a

move to a duty quota system for textiles,

which had the support of FCO, ODA and the then

Board of Trade but was strongly opposed by the

Ministry of Technology, on the ground that it

would cause considerable difficulties with the

UK textile industry. These difficulties are

clearly no less than they were a year ago but

we remain of the view that to allow duty

quotas on textiles as part of our GPS

arrangements, which are due to be inaugurated

on 1 January 1972, and to which we will have

to switch in any case from 1 January 1974,

would have been nevertheless the right answer

both on merits and in terms of our international

obligations. But if DTI's proposal to

mollify Lancashire with some global form of

quantitative control were to be accepted, the

case for proceeding with duty-free quotas on

a basis as comparable as possible to the EEC's

existing arrangements would become in our view

incontestable.

CONFIDENTIAL

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