TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 16

CO PFIDENTIAL

TEXTILE IMPORT POLICY

DRAFT AIDE MEMOIRE TO GOVERNMENTS OF RESTRICT.D COUNTIRES

As

Government will be aware the British

Government announced in July 1969 that on 1 January

1972 a tariff would be introduced for cotton textiles

imported from the Commonwealth Preference Arca. The

Government also announced their intention at the sanc

time of ending the existing quantitative restrictions,

applying to a number of Commonwealth and non-Commonwealth

countries, on cotton textile imports and of using quotas

under the GATT Long Term Arrangement if. total imports

rose above present levels and if imports of particular

products caused disruption. It was made clear that

these decisions would be subject to any modifications

required if we jointed the EEC.

2. It remains the British Government's intention to introduce

the new tariff.

3. In several respects, however, the textile situation has

developed rather differently than coomed likely in 1909.

4. In the first place HMG have decided, after consultation

with the European Community, that it would be inappropriate

to seek a derogation from application to the UK fr cm

1 January 1973 of the restraint agreements on cotton

textile imports which the Community has with a number of

exporting countries. This means that if the present

quantitative restrictions were ended next January, the UK

would have, as Community members, to reimpose a considerable

range of restrictions only a year later. HMG believe that.

the market would suffer substantial dislocation during the

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