TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 113

SECRET

HAVE LONG SINCE APPLIED A COMBINATION OF QUOTA AND TARIFF PROTECTION.

DESPITE THE UNEMPLOYMENT IN THE BRITISH COTTON TEXTILE INDUSTRY

THE QUOTAS FOR 1972 WILL BE INCREASED BY 1 PER CENT AS IN EARLIER YEARS

8. THE BRITISH GOVERNMENT ARE NOT PROPOSING TO CHANGE THE ARRANGEMENS

ALREADY NOTIFIED TO THE PAKISTAN GOVERNMENT WHEREBY COTTON TEXTILES

EXPORTED IN 1971 FROM RESTRICTED COMMONWEALTH PREFERECE AREA

COUNTRIES AND LICENSED AGAINST THE 1971 QUOTAS BUT ARRIVING AFTER 1

JANUARY 1972 MAY BE RELIEVED OF THE NEW TARIFF.

9. TO AVOID EXCESSIVE CONCENTRATION OF IMPORTS IN THE EARLIER 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.

10. THE ARRANGEMENTS FOR HANDLOOM TEXTILES WILL BE THE SUBJECT OF

A SEPARATE COMMUNICATION.

11. THE BRITISH GOVERNMENT HOPE THAT THE PAKISTAN GOVERNMENT WILL

BE WILLING TO CONTINUE TO ADMINISTER IN 1972 THE COUNTRY QUOTAS

WHICH THEY HAVE HITHERTO APPLIED SUBJECT TO THE USUAL 1 PER CENT

GROWTH. GOVERNMENTS CONTINUING TO ADMINISTER QUOTAS ARE REQUESTED TO

REGARD AS A FIRST CHARGE AGAINST THESE QUOTAS ORDERS MADE BEFORE (THE DATE OF THE ANNOUNCEMENT IN PARLIAMENT) AND CONFIRMED BY IRREVOCABLE LETTER OF CREDIT. IF SUCH ORDERS EXCEED QUOTAS IN ANY.

CATEGORY GOVERNMENT SHOULD INFORM THE BRITISH GOVERNMENT OF THE

EXCESS BUT IT MUST BE MADE CLEAR THAT THE BRITISH GOVERNMENT CANNOT

UNDERTAKE TO ADMIT IMPORTS IN EXCESS OF QUOTAS.

-3- SECRET

./12. UNDER