TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 9

hope that most countries will see the advantage of keeping the administration of country quotas in their own hands.

As soon as we receive afirmation

of a country's agreement to administer quotus a list of country quotas available to it will be sent to you. These quotas will be set at levels 1 higher than the quotas applying for the twelve months of 1971 but it will not be permissible to use these quotas to cover anticipating shipments made before the end of 1971. We have already told countries that shipments in 1971 must be within the 1971 quotas.

Imports from global quota countries will also be accepted if they are covered by the global import licences distributed to UK importers. Imports which are not covered either by an import licence issued against the country quotas or by a global import licence will not be accepted. For your own information, however, we envisage possibly having to licence exceptionally shipments made in pursuance of bona fide contracts entered into by UK importers before the date of the announcement provided that there are inescapable reasons why they cannot be accommodated wither within the country or global quotas.

The Aide Memoire contains an explanation of the reasons why we have decided to retain quotas next year. The requirement to alim to the EC's quantitative restrictions on entry has only become inescapable in the last six weeks. We still cannot say in detail what arrangements will apply after our entry and this is a matter to be resolved during 1972. The prospect of having to impose restrictions in 1973, however, makes it impossible now to un rely only on the policy of dealing with increased imports which cause disruption on a product by product basis during the course of 1972. The pressure on our market in the short term would be too great. We are also conscious of the implications of US restrictions on imports of non-cotton textiles for trade in textiles generally. addition, we are under heavy pressure from the Lancashire industry. to provide them with greater protection following, a sharp accelera- tion in the rate of increase of mill closures and unemployment. ̧· But we would stress that continuation of existing quotas will not reduce the quantities of textiles imported from developing countries but will only prevent a further damaging increase.

In