TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 170

!

·

!

WR RIDLEY CT

Gould's

Antfugt

ли

Presumably

subsumed it

твител

hunt Milad-HR.D / meeting

cc Miss Lowne CT

in Morgan SAAD sha get coples

Mr Moinery CT

Mr Gray CRE 1 Mr Whaley T

Ir Hale FCO

to day

Miss Lackey CR# 2 Miss Muskett Mr Price

COTTON TEXTILE: COMMONWEALTH IMPLICATIONS

I feel great distaste for any idea of "stretching" Crosland by trying to argue that we are in a situation justifying reimposition of quotas under the Crosland formula if in fact we cannot clearly and convincingly argue that we are in that position. The formula was clearly intended for a period after there had been time to see how the tariff would work and it seems to me terribly difficult to argue convincingly internationally that current trends are such that as from 1.1.72 or shortly thereafter the position will be what we said could necessitate invocation of the LTA.

I feel myself strongly that rather than stretch the Croslandi formula we would do our repute less damage if we could say that since the Crosland decision circumstances had changed. I suppose the main factor to put one's weight on would be the general increase in unemployment.

If Ministers decide that they must now have quotas on top of the tariffs, it seems to me that what, within the range of what would meet the essentially political need, we would want to opt for would be what would be least difficult to negotiate or if we could not negotiate what we wanted to impose internationally. I would have thought that this was th obvious test.

I have ruled out a global quota for all cottons and all countries. I have done this because people say it is at best doubtfully consistent with the LTA and because I do not see how one negotiates such a quota with a lot of countries wich different interests. It seems to me that this is a course one follows only by unilateral announcement of intention to limit imports from all relevant sources within a ceiling of one's 013 determination.

If it is right to put this on one side, then what might be negotiable or imposable without too much risk of adverse political or commercial consequences requires looking country by country at what would be involved.