TNAG-0303-FCO40-339-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 99

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CAUSE DISRUPTION, IS UNLIKELY TO GIVE THE NECESSARY STABILITY OF MARKET AND EMPLOYMENT CONDITIONS. IN PARTICULAR, THEY

DO NOT FEEL CONFIDENT THAT IN A SITUATION SUBJECT, TO VERY RAPID CHANGE, THEY COULD TAKE ACTION AGAINST DISRUPTION QUICKLY ENOUGH ON A PRODUCT-BY-PRODUCT BASIS. IN FACT, IT HAS ALREADY BECOME

APPARENT THAT ORDERS IN THE PIPELINE, IN ANTICIPATION OF A

QUOTA FREE MARKET NEXT YEAR, ARE AT A LEVEL CONSIDERABLY HIGHER THAN USUAL,

5. THEY HAVE, THEREFORE, DECIDED TO RETAIN IN 1972 THE EXISTING QUANTITATIVE RESTRICTIONS IN ADDITION TO THE NEW TARIFF.

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THE BRITISH GOVERNMENT HAVE TAKEN THIS DECISION ONLY AFTER THE MOST ANXIOUS CONSIDERATION. THEY BELIEVE THAT THE STABILITY THAT THIS ACTION WILL BRING TO THE BRITISH MARKET WILL BE OF VALUE TO OVERSEAS SUPPLIERS AS WELL AS TO THE BRITISH INDUSTRY.

7. THE RESTRICTIONS NOW BEING RETAINED WILL PERMIT A LEVEL OF COTTON TEXTILE IMPORTS FAR HIGHER PROPORTIONATELY

THAN PERMITTED BY OTHER MAJOR INDUSTRIAL COUNTRIES, ALL OF WHCH 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,

S. 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 LICENCED 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.

9. THE BRITISH. GOVERNMENT HOPE THAT THE

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 GOVERNMENTS SHOULD /INFORM

QUOTAS !