TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 167

Mr Hale

CONFIDENTIAL

Reference

•P.A. 11/11. AL Lof but.

EV.

11/41

TEXTILES POLICY

1. Apart from general trade policy and, for instance GATT implications, TPD has a particular interest in possible changes in our textiles import policy with regard to their implications for our GPS.

2. Textiles are not included in our present GPS but they are in that of the Community, which offers duty-free quotas. Textiles apart, the GPS we are to introduce on 1 January 1972, with its unlimited duty-free access alfords greater benefits that of the Community which imposes duty quotas on a fairly substantial list of sensitive products. Therefore, on the assumption that a decision is taken now or in the intervening years to apply quota restrictions as well as the tariff to textile imports, it would on assimilation to the Community GPS be difficult to justify an overall narrowing of our own GPS if we did not give the full advantage of any compensatory benefits deriving, one of which would be duty-free quotas on textiles.

3. If the tariff is to be supplemented by quota restrictions, the provision of an element of duty free quota would perhaps help to soften the blow for Commonwealth ldc suppliers, and perhaps too to ease the problem of the political odium our decision will attract. From the GPS point of view it would be a sensible and helpful anticipation of the requirement posed by alignment with the Community's scheme and it would perhaps help to give a semblance of consistency into our policy. It would also get the DTI over a fence at which it has hitherto been consistently baulking.

G. L. Simmons. G.L.

8 November 1971

Copies to:

EID (1)

HKD

S Asian Dept

G L Simmons

Trade Policy Department G 4/1 Tel G 102

DD 896637 140609 500M 7/71 GM 3643/2

CONFIDENTIAL