TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 74

IMMEDIATE

CYPHER CAT A

FM FCO 291250Z

SECRET

SECRET

CYPHER

NEUTRAL

DESKBY 30/1000Z

TO IMMEDIATE NEW DELHI TELNO. 1698 OF 29/11 INFO IMMEDIATE BOMBAY.

COTTON TEXTILES:

FOLLOWING IS DRAFT OF AIDE-MEMOIRE REFERRED TO IN FCO TELNO. 1687

TO NEW DELHI.

YOU SHOULD TAKE NO, REPEAT NO, ACTION PENDING RECEIPT OF

INSTRUCTIONS.

2. AS THE INDIAN GOVERNMENT WILL BE AWARE, THE BRITISH

GOVERNMENT ANNOUNCED IN JULY 1969 THAT ON 1 JANUARY 1972 A

TARIFF WOULD BE INTRODUCED FOR COTTON TEXTILES IMPORTED FROM THE

COMMONWEALTH PREFERENCE AREA. THE BRITISH GOVERNMENT ALSO ANNOUNCED

THEIR INTENTION OF ENDING AT THE SAME TIME THE EXISTING GENERAL QUOTA

SYSTEM WHICH RESTRICTS IMPORTS OF COTTON YARN AND WOVEN COTTON

TEXTILES FROM INDIA, HONG KONG AND THE COMMONWEALTH AND NON

COMMONWEALTH COUNTRIES INCLUDED IN THE 'GLOBAL' SCHEME: AND OF

CONFINING THE RE-INTRODUCTION OF QUOTAS AFTER 1 JANUARY 1972 TO

SPECIFIC CASES WHERE TOTAL IMPORTS ROSE ABOVE PRESENT LEVELS, AND

CAUSED DISRUPTION TO THE MARKET FOR THE PARTICULAR PRODUCTS

CONCERNED. IT WAS MADE CLEAR THAT THESE DECISIONS WOULD DE · SUBJECT TO ANY MODIFICATION REQUIRED IF WE JOINED THE EEC.

3.

IT REMAINS THE BRITISH GOVERNMENT'S 'INTENTION TO INTRODUCE

THE NEW TARIFF WHICH HAS NOW DEEN LAID BEFORE PARLIAMENT FOR -

APPROVAL.

/4. THEY

SECRET