TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 8

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CONFIDENITAL

DRAFT TELEGRAM

FM PCO

TO (See list to be prepared)

MY TEL NO 109.0F 29 JUNE 1971 TO PORT OF SPAIN AND MY TELEGRAM NO 3 SAVING TO PORT OF SPAIN OF 30 OCTOBER 1970

COTTON TEXTILES

GMT on

An announcement will be made in Parliament at

1971 during the debate on imposition of the now tariff on imports of cotton textiles from the Commonwealth Preference Area that the UK has decided not to remove quantitative restrictions on imports of cotton yarn and woven cotton textiles from Hong Kong, India and the global quota countries at the end of 1971 as had been intended (see telegrams 840 and 841 to Delhi of 21 July 1959). Instead, we intend to continue the present quot system until the end of 1972 when new arrangements will have to be introduced on entry into the EEC. The tariff on imports from the Commonwealth. Preference Area will subject to Parliamentary approval be introduced as announced. It will be necessary to inform Government s of major supplying countries of the change in policy and to seek the co-operation of the Governments of India, Hong Kong and countries having country quotas to continue to administer the restraints as they do at present. MIFT contains the text of an Aide Memoire explaining the decision and seeking the co-operacion of countries where this is necessary. This should be transitted to Goverments as soon as possible after 00.00 GMT on

1971.

Where the aide memoire contains a request for co-operation it asks for a reply to be received by 31 December 1971. This is necessary if we are to know the basis on which import licences are to be issued for goods shipped from the beginning of 1972. If we do not receive thè necessary assurances that exports from India, Hong Kong and under the country quotas will be covered by export licences issued within the quota limits we shall have to issue the import licences to importers on a different basis. For your OTM information, however, we would still intend to issue these licences only in respect of goods exported from the country cone mnod.