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He confirmed that he was also instructed to include cotton woven shirts within the overall application of the flexibility provisions.
95.
Mr. Verhagen felt that, in order that the Benelux side could justify their independent decision to their respective Governments on the granting of flexibility, a 5 per cent reduction across the board based on the lower of the two figures quoted would be essential. He suggested the following figures as the restraint limits for the period 1st October, 1967 to 30th September, 1968, on this basis
(a) Nightwear for men and boys
(b) Nightwear for women, girls and
infants
(c) Handkerchiefs
(a) Bed-linen
(e) Household linen
(f) Cotton woven shirts
181 tons
79 tons
323,000 dozens
219 tons
238 tons
1,182,750 pieces
These limits would be pro-rated for the items other than shirts during the interim period 18th July to 30th September, 1967, when the flexibility provisions would not be applied.
96.
Mr. Miller explained in detail the operation of the future swing scheme, and confirmed Mr. Verhagen's understanding that, before the limit for any category could be increased, an equivalent yardage must be surrendered from the limits for one or more of the other items under restraint. The total yardage of all restrained categories could therefore never be exceeded. The calculation of swing quantities would be made in equivalent square yards in accordance with the agreed conversion factors. In this connection, Mr. Miller observed that no conversion factor had yet been agreed for the cotton woven shirts, and proposed the factor of 24.457 square yards per dozen as used in Hong Kong's
Mr. Verhagen agreement with the Federal Republic of Germany. accepted this proposal.
97.
The revised restraint limits for the six categories of cotton textiles for the period 1st October, 1967 to 30th September, 1968 were then confirmed and it was agreed to cover the flexibility provision by the addition of the following sentence to paragraph 5 of the draft Memorandum
98.
"Any of the limits specified in Annex B for the
period 1st October, 1967 to 30th September, 1968 may be increased by not more than five per cent, with equivalent reductions in one or more of the other limits specified in Annex B for the same period, using the conversion factors indicated."
Mr. Miller suggested, and Mr. Verhagen agreed, that the delegations should meet at 10.00 a.m. on Friday, 14th July, to discuss further the question of Benelux imports of umbrellas from Hong Kong, and that the Closing Session of the cotton textiles consultations should take place at 11.15 a.m. on the same day, at which time a Government press officer would attend. Mr. Miller handed over a copy of a draft press release for issue at the conclusion of the Session. This was couched in general terms pending the formal agreement of the Governments to the arrangements provisionally agreed between the two sides.
Closing Session
CONFIDENTIAL