§ Mr. Normantonasked the Secretary of State for Trade and Industry what import licences will be issued for cotton textiles ordered from restricted countries before the announcement on 8th December, 1971, of the decision to keep import quotas in 1972.
§ Sir J. EdenThe volume of such orders heavily exceeds the total 1972 quotas for a number of products and countries and I estimate that, if these goods were admitted, imports of cotton textiles from restricted countries would be about 8 per cent. higher than in 1971. This would undermine the purpose of the decision to retain quotas. I have, therefore, decided that licences can be issued in 1972 only up to the limit of the quotas, regardless of the date of ordering. I recognise that this will cause difficulties for British importers who had placed orders in good faith and also for some400W overseas suppliers. But I greatly regret that the circumstances I have described have made this decision inevitable. We are asking exporting countries which allocate the quotas to give priority to orders placed before 8th December, 1971. Exceptionally, licences outside the quotas may be issued in respect of orders placed before that date where I am satisfied that the goods cannot be obtained from United Kingdom sources.