TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 155

CONFIDENTIAL

br

described in Annex A of the DTI draft

submission..

24. We cannot be sure that the system of restraints

currently operated by the Community would be applied

literally to a Community of 10 but at least such

the enlarged

levels should be a starting point for a/Community of 10% It is true that the present EEC totals are below our

the own(for India, Hong Kong and Pakistan, of what UK takes) on a population/volume basis but there are

signs that certain of the 6, eg Germany, in their

negotiations with the ldc's, have adopted a liberal

attitude. There would therefore seem to be no compelling reason why we should not explore with the 6 say in mid- 72 (this would probably also be the time when the

Community would have to begin negotiations on the Article 4 agreements to apply to the 10) the possibilit

of anticipating the pattern of limits for a Community

of 10; and to thereafter negotiate with the leading

1dc suppliers on restraints in 1972. Subject to what

had happened in the GATT study, this could lead to a

textile policy on a multifibre concept, and to a

comprehensive quota system in which there could be

single quota limits for directly competing products.

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