them be of minimal effect. 2 examples amongst those having complained to us highlight this problem. Pakistan claims to have orders between 80 and 100 million sq yds. They have a country quota of about 23 million sq yds and even assuming that they were able to get half the global quota (most unlikely) their total potential in 1972 would be something about 57 million sq yds. They thus have an excess of anything between 23 million and 43 million sq yds. Brazil has a quota of about 31 million sq yds and claims an excess of 5 million sq yds. It can be seen from these examples that if we were to suggest to the DTI that a percentage (say 4) were applied to all the current quotas this would be regarded as meaningless by Pakistan, Brazil and those that have complained about excess orders. (Our records show Colombia, Iran, Spain, Thailand and Yugoslavia among quota countries and Ghana under the global quota.) In the circumstances, the only "equitable treatment" would seem to be to maintain our line on excess orders that we can accept these only if they come within the country quota involved.
5. If accepting the foregoing is a logical extension of the original decision by Ministers, we must also apply the same logic when considering the question discussed in paragraph 11 of the DTI submission. In our aide-mémoire, and in a number of occasions since, we asked countries to continue to administer the quotas and there would be no credible reason (the problems of British importers are not really relevant in this) for us now taking the administration on ourselves.
6. It is clearly desirable that we get Ministerial confirmation of these two points quickly and I propose, unless I hear to the contrary from the recipients of this minute by 4 pm, to submit on this basis to Mr Royle (before leaving, Mr Laird said that X his Department could accept option 3), Lord Lothian and,
finally, the Minister of State.
HE J Hale
8 February 1972
Commodities Department
CONFIDENΤΙΛΙ,
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