TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 85

CIPHER/CATA

FM F C O 291250Z

SECRET.

SECRET

NEUTRAL.

DESKBY 301000Z

TO IMMEDIATE CANBERRA TELEGRAM NUMBER 1214 OF 29 NOVEMBER

AND TO OTTAWA WELLINGTON BRUSSELS PARIS BONN ROME

LUXEMBOURG THE HAGUE UKDEL BRUSSELS INFO IMMEDIATE TO WASHINGTON UKDEL OECD UKMIS GENEVA AND TOKYO.

COTTON TEXTILES: FOLLOWING IS DRAFT OF AIDE MEMOIRE REFERRED

TO IN F.C.0 TEL NO 1687 TO NEW DELHI.

(FOR UKDEL EEC BRUSSELS PARIS BONN ROME LUXEMBOURG THE HAGUE REFERENCE IS MYTEL 221 TO BRUSSELS).

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

INSTRUCTIONS.

2. AS THE ..... 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 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 COMMON-

WEALTH 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 BE SUBJECT TO ANY MODIFICATION REQUIRED IF WE JOINED THE EEC.

3. IT REMAINS THE BRITISH COVERNMENT'S INTENTION TO INTRODUCE THE NEW TARIFF WHICH HAS NOW BEEN LAID BEFORE PARLIAMENT FOR APPROVAL.

SECRET

/L. THEY HAVE,