TNAG-0391-FCO40-437-Restriction-on-cotton-textile-exports-from-Hong-Kong-to-the--1973 — Page 8

would not

serve any interest of the other Member States;

on the

contrary, there is reason to believe that they would not

cotton yearn imports welcome any increase in low-cost

into the Community as a whole in 1974.

(5) Abrupt termination of restrictions in itself tends to be

disruptive. At least two of the UK's principal suppliers, India, and Hong Kong, would almost certainly prefer phasing out to sudden liberalisation, which would allow them no

time to adjust to increased competition from other sources.

J

9. Since the present extension of the UK's import restrictions on cotton yarn from 1 April to 31 December 1973 was made possible by a derogation under Article 10 of Regulation 1025, it is necessary for the UK to request the Commission for a further derogation, to enable the programme of gradual phasing out described above to be carried out.

EUROPEAN ECONOMIC DISTRIBUTION:

EID

ADDITIONAL DISTRIBUTION: FRAME

COFIES TO:

MR. R. HOPE, CT DIVISION, DTI

- 4

{