TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 198

will have to be counted against that quota so that the amount to be shipped in 1971

will be the 1971 quota less any anticipatory shipments made in 1970. In practice,

this last point mainly affects Pakistan, who has recently agreed on the 1971 quota

levels net of 1970 anticipation.

First

3 We consider it essential that the 1971 quota should not be exceeded; otherwise there would be a heavy bunching of imports in the year ending mid-1972, there is

centitlement for CPA countries likely to be a rush to take up fully the quotas(which have been under used for

the last couple of years) before duty free entry finally comes to an end. By

allowing continued duty free entry for CPA goods shipped under quota in 1971 but

Pasitain Cassuming that the Finance Bill Sanse is passed); arriving in the UK in 1972 we are ensuring that this unusually heavy intake from

Chair

Secondly

the CPA is spread over as long a period as possible. Butor

once the quota controls for (the developing countries,

Zend, heavy imports are likely as all/exporters endeavour to secure for themselves

5o far as they

are concerned,

the largest possible share of a market which, is no longer subject to quantitative

(As regards 1971 efforts, import restrictions. We believe that the combination of quota enforcement and

duty relief for CPA shipments under quota arriving in 1972 will make for as smooth

a transition as possible from quotas to tariff protection alone and avoid disruptively

high imports over a number of months, during which pressure would build up for a re-

introduction of quota control. It is in the interest of the exporting countries as

well as Lancashire that we should avoid the latter situation.

4 Please inform the Government to which you are accredited of the following

arrangements and suggest that it is in their interest as well as in ours that they

should be observed. To Hong Kong substitute "The following are the procedures which will be needed to implement the arrangements described in paragraph 17

a To ensure that the quota limits are observed, all

restricted cotton textiles exported from the countries

subject to quota will continue to be controlled by

individual import licensing up to and including 31 March

1972. Import licences will be granted for goods exported

the DTI is satisfied

in 1971 only if evidence is produced to the DIE that they

exported

were shipped within the quotas. Goods ekipped in 1971

in excosa of the quotas are liable to poizuro.