TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 109

3.

SECRET

Zhong Kong. The British Government continue

to believe that efficient producers will be able to sell profitably in the UK over the new tariff and the restrictions now being retained will permit a level of cotton textile imports far higher proportionately than that allowed in other major industrial countries, all of whom have long since applied a combination of quota and tariff protection. 5 will still be

for

possible for HMG to satisfy of to 50 per cent of domestic consumption of cotton textiles, for higher uptortion than in any other major industrial country

IN CHOOSING TO MAINTAIN EXISTING RESTRICTIONS THE BRITISH

GOVERNMENT HAVE ALSO BEEN INFLUENCED BY THE VIEW THAT THIS IS

LIKELY TO BENEFIT TRADITIONAL SUPPLIERS IN 1972: AND WHILST THE

BRITISH GOVERNMENT CANNOT OF COURSE ANTICIPATE THE PATTERNS OF

RESTRICTIONS APPLYING TO BRITAIN WHICH THE EUROPEAN COMMISSION

WILL NEGOTIATE FOR THE PERIOD AFTER 1 JANUARY 1973, IT SEEMS REASONABLE TO EXPECT THAT SOME REGARD WILL BE PAID TO THE PATTERN

APPLYING IN THE YEAR IMMEDIATELY PRECEDING BRITISH ENTRY INTO THE EEC. DESPITE UNEMPLOYMENT IN THE BRITISH COTTON TEXTILE INDUSTRY THE QUOTAS FOR 1972 WILL BE INCREASED BY 1 PER CENT AS IN EARLIER YEARS.

10. THE BRITISH GOVERNMENT ARE NOT PROPOSING TO CHANGE THE ARRANGE-

MENTS ALREADY NOTIFIED TO THE INDIAN GOVERNMENT WHEREBY COTTON

TEXTILES EXPORTED IN 1971 FROM RESTRICTED COMMONWEALTH PREFERENCE

ARCA COUNTRIES AND LICENSED AGAINST THE 1971 QUOTAS BUT ARRIVING

AFTER 1 JANUARY 1972 MAY BE RELIEVED OF THE NEW TARIFF.

1. TO AVOID EXCESSIVE CONCENTRATION OF IMPORTS IN THE EARLIER

COULD NOT PARTS OF 1972, THE BRITISH GOVERNMENT ARE UNABLE TO AGREE THAT

EXCESS SHIPMENTS IN 1971 SHOULD BE LICENSED IN ANTICIPATION OF

THE 1972 QUOTAS. CONTRACTS ALREADY PLACED FOR SHIPMENT AFTER

1 JANUARY 1972 MUST BE ACCOMMODATED WITHIN THE 1972 LIMITS. NO

COTTON TEXTILES FROM RESTRICTED COUNTRIES WILL BE ADMITTED INTO

BRITAIN IN 1972 WITHOUT AN INDIVIDUAL IMPORT LICENCE ISSUED BY THE

DEPARTMENT OF TRADE AND INDUSTRY.