TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 139

to 31 December 1971. It would also produce bitter complaints from UK

importing interests, which have planned their contracts on the basis of

the assurances given them about the availability of duty relief.

39. On the second, the Government has not taken powers to operate duty-

free quotas during 1972. Lancashire would be strongly opposed to any

concession of this kind, however limited in scope. If the duty-free

arrangements for cotton textiles covered the same list of

beneficiaries as the rest of our UNCTAD offer, a considerable degree

of "counter-marching" would be involved when, after accession to the

EEC, we had to conform to the Community's short list of half a dozen or so beneficiaries (which excludes, amongst many others, Hong Kong).

For all these reasons, it is recommended that the UK should not

introduce duty-free quotas for textiles in advance of Common Market

entry.

A

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