other than cotton, the study is covering a wide range of products including wool and man-made fibre textiles, clothing and carpets. The results of this study of fact may provide a basis for the renegotiation of the LTA, possibly on a pan-fibre basis. Any such renegotiation is unlikely to get under way until next year, although the initial positions of certain countries are known. Clearly. the renewal or renegotiation of the EC's agreements with the 7 countries after their expiry on 30 September or 31 December 1973 must take into account the international framework for bilateral textile agreements which may emerge from discussions in 1973 based on the results of the present study of fact.
COTTON YARN
5. Under the arrangements for 1973, cotton yarn is a special problem because it is the only significant textile which the six have formally liberalised and we have not. We are acceding to the Community's Common Liberalisation list with effect from 1 April 1973 but the Commission have agreed (as you will see from the state- ment) that the UK should be permitted to continue to subject cotton yarn to quota restraint. Imports will therefore be determined in the same way as for other cotton to:tiles. An exception to this arrenge- ment will be that cotton yarn exported from the Mediterranean Associate countries will be liberalised from 1 January 1973. of cotton textiles other than yarn from the Mediterranean Associates will continue to be limited by quota until 1975).
RESTRAINTS ON OTHER COUNTRIES
6.
(Davorka
We shall retain eristing restraint arrangements on cotton tortiles exported from countries other than the 7 and the Mediter anean Associates, but the form of there has not yet been decided. The global quota will be greatly diminished after South Korea, Egypt, Pakistan, Taiwan and the Mediterranean Associates have taken their share of it as of right, so the present system of separate country and global quotas might not continue in their present form. Total imports. however, will continue to be restrained at the pr dant level (plus 1%).
LINE TO MAKE
7. The Commission will be renegotiating their agreements with the 7 countries before the end of this year to take account of onlar ment. Until they do so, it is not for us to inform the contries concerned of the details. We would not therefore wish you to mise these questions with the authorities of the countries concerned, but you may find the foregoing use ul in dealing with enquiries. You could take the line that less categorisation and incr asedilo: i- bility, together (where appropriate) with the amalgamation of their country quotas and their past performaces in the global quota, is evidence of our continued willingness to take their interests into account after our entry into the EC and to see that their exports to us are not diminished as a result.
8. For those countries whose country quota and past performance in the global quota are to be merged there is an additional advantage in that the exporting country can control the licensing of all i
J.
CONFIDENTIAL,
No comments yet.
Private notes are available after approval.