Sir L Monson
IMPORTS OF COTTON TEXTILES
1. You may care to glance at the exchange of saving despatches we have had with Hong Kong over the last 18 months before the Secretary of State sees Mr Davies about the proposal of the DTI to retain quotas. I am also attaching the record of the meeting we had with representatives of Hong Kong on 1 February 1971.
2.
I would draw attention in particular to the following statements -
Saving Despatch No 223 of 22 June 1970.
Paragraph 3.
"What is intended is that so long as the LTA obtains, we would proceed as implied in the (Crosland) statement."
Faragraph 4.
"If we are forced to consider the use of quotas, the course of action we adopt will have to be considered in the light of circumstances at the time, within the framework of the President's statement.
警要
Saving Despatch No 95 of 18 March 1971.
Paragraph 2.
"Our view has always been that the new policy (tariffs instead of quotas) would lead to some changes in the pattern of our imports of cotton textiles in which Hong Kong could
and may reasonably expect gains in some sectors to balance be outweigh losses in others.
Faragraph 3.
"We know of no changed circumstances which has invalidated this central and widely accepted finding and we cannot therefore view favourably suggestions that the existing system of quota restrictions should be extended beyond the end of this year".
Paragraph 5.
"In other words, we expect that our policy of tariff and no quota restrictions on imports of cotton textiles will run for at least two years from 1 January 1972 on the most optimistic assessment of the timetable for possible UK entry into the EEC".
Paragraph 7.
....it is our intention only to impose quotas on sectors in which there is disruption".
/Record
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