TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 133

(1)

(2)

27. If then we are considering methods of preventing any disruptive

rise in imports in 1972, the choice seems to be between three systems:

Continuing the present quota arrangements for the year 1972

Mỏnitoring imports from the developing countries with a view

to taking restrictive action quickly if particular sectors

came under pressure

(3)

Continuing specific licensing for imports of cotton textiles

from the developing countries, and announcing that an overall

ceiling (equivalent to the sum of the former quotas) had been

fixed for the quantity of licences to be issued.

28.

Considering these alternatives in turn.

(1) Continuation of present quota arrangements

This would be the easiest of the three courses from the point of

view of Import Licensing Branch. On the other hand, the system would

require the co-operation of the exporting country. The Indian and

Hong Kong quotas, and the country quotas allotted to 34 global quota

countries, are administered by the Government of the country concerned;

together, these amount to over nine-tenths of the total quota.

Considerable difficulty was experienced in persuading the restricted

countries to continue the quota arrangements, which were originally

intended to cover the five years 1966-70, for the additional year 1971;

they were induced to do so with the bait that one final year of

restraint would be followed by liberalisation of the trade. Similar

arguments were used in an attempt to reconcile the developing

Commonwealth to the tariff; we were, we said, moving from a quota

system which froze trade in traditional patterns to tariff protection

alone, which would enable any reasonably efficient developing country

to maintain if not increase its trade, and trade up (in a way

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