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(b)
a short period agreement would disrupt the trade as exporters would then worry about the future;
(c) there would be doctrinal difficulties as the L.T.A.
referred to periods of twelve months. A shorter period, especially when it would be obvious that further controls would be necessary, would lead to speculation about the possibility of an Article 4 agreement in the offing.
But he did not want to be rigid and suggested that it might be possible to compromise by having a one-year agreement dating from 18th May, 1967. This point could perhaps be settled later.
49.
Mr. Haddon-Cave tabled a list of Hong Kong exports converted to short tons based on the conversion factors suggested by the Benelux side and explained the basis of the computations. He said that Hong Kong always relied on export licensing records rather than trade statistics for such purposes because
(a) export licences were valid for only 28 days whereas
export declarations had to be made after shipment and in some cases were many months late;
(b) coverage of export licences was more accurate;
(c) although there was a statutory requirement to make trade
declarations, some exporters did not in fact make them and in view of Hong Kong's free port status enforcement was not always easy;
and (d) statistics based on export declarations could be
misleading as they were compiled on the basis of the first port of call which was not always necessarily the final destination.
Mr. Miller explained how licensing statistics were adjusted for short shipments and shut-outs.
50.
Mr. Haddon-Cave thought that, on the basis of the converted figures, there might be difficulty in reconciling Hong Kong and Benelux figures on nightwear end on household linen of terry cloth. Mr. Verhagen pointed out that the Benelux figures were based on the reference period from 1st February, 1966 to 31st January, 1967 whereas Hong Kong figures appeared to be based on the calendar year. Mr. Haddon-Cave confirmed that this was so and explained that it was not possible for the Hong Kong delegation to provide figures for the reference period since records of export licences issued in 1966 had now been destroyed and it would not be possible to deduce a figure representing January, 1966 from the 1966 total before adding on another figure to cover January, 1967. But since trade had been on an upward trend, use of the calendar year would work to the detriment of Hong Kong.
51.
Mr. Verhagen provided the following figures calculated on the basis of the Benelux base period 1st February, 1966 to 31st January, 1967 compared with Hong Kong figures calculated on the calendar year
(a) Nightwear (Men's and
Boys')
Benelux figures
Hong Kong figures
191 tons
N.A.
Girls'
(Women's and Infants and
83 tons
N.A.
/(3)
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