TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 135

of Britain's good name abroad, we do not consider that this course

should be pursued.

(2)

Import monitoring

30. This could be exercised by a system of consignment licensing for

cotton textiles from the developing countries, with a limited period

of validity (say 2 months) for each licence. Running totals could be

kept of the quantities licensed of particular categories of cotton

textiles, and action taken, if necessary, to restrict types which

seemed likely to rise to disruptive levels. Under Article 3 of the

Long Term Arrangement, it would be necessary to hold consultations with

the countries supplying the goods concerned; but ing critical

circumstances it is permissible to impose import restrictions while the

consultations take place.

31. The exporting countries' objections to this sytem would be much

less than in the case of course (1); indeed, import monitoring could

be represented as a development of the Crosland formula. There is

however reason to doubt whether restrictions could be introduced

sufficiently quickly in a disruptive situation to alleviate the

situation very significantly. Import monitoring would not apply to the

bulk of arrivals in the first six or eight weeks of 1972, since these

would be goods shipped under quota from Asia in 1971. To form any

assessment of the volume of goods coming in under conditions of

unrestricted trade, it would then be necessary to allow three or four

months to elapse. But if by the summer it had become clear that

action must be taken, it would be difficult to deny entry to the

considerable further quantities (another six or eight weeks arrivals)

-

20.

1

Page 135Page 136