TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 31

because of

the

stabulila

eur action

will give to the British Mu het

In all the circumstances I have come to the conclusion that'

for the benefit not only of our own industry but also to a

large degree for that of our traditional suppliers I must

retain in 1972 the present general system of quantitative

restrictions in addition to the tariff. I am fortified in taking

this step by the indications I already have of the build-up of

orders for next year and by the knowledge that in the rapidly changing situation affecting this industry I might not otherwise

be able to take action quickly enough to forestal disruption.

This decision has been the subject of discussion with the

Governments of countries that have been our main suppliers with

a view to demonstrating that nobody's interests would be served

by a surge of exports into our market in 1972 originating from a

wide range of sources. Whilst regretting the inconvenience

our decision may cause them we appreciate their understanding

of our problem. We have asked those who currently administer

restrictions at the point of origin to continue to do so, whilst

making it clear that should they find that impracticable we

shall undertake the task from here. All imports of currently

restricted cotton textiles from the countries in question will

continue to be restricted and I must stress that we will not

be prepared to license excess shipments in 1971 in anticipation of 1972 quotas. No assurance can be given that licences will be

issued for contracts entered into from today unless the Government

are satisfied that the orders can be accommodated within the quotas

for 1972. Fuller details of these arrangements are being issued

to those concerned. The arrangements, moreover, will make the

adaptation process to the EEC easier.

T