man-made fibre goods, a proposition which was not in
their view covered by the agenda for the meeting.
Mr. Kawasaki said the Canadians were continuing to
press very hard, but the Japanese negotiatzen had
maintained their unyielding attitude.
Japan's negotiations with Canada on 1970 restraint
arrangements are highly relevant to Hong Kong's
position vis-a-vis Canada. The Japanese Consul-
General in Hong Kong has been informed that Hong Kong.
was obliged to agree earlier this month, under
considerable Canadian pressure, to renew her restric-
tions on exports to Canada of certain polyester/cotton
garments, and to include polyester/polynosic shirts
in the controls. The restraint levels for the year
ending 30th September 1970 are:
polyester/cotton blouses 41,600 dozen (4% growth on)
current years' restraint level)
polyester/cotton trousers 56,375 dozen (24% growth)
polyester/cotton and. polyester/polynosic shirts
·
100,000 dozen (compared with the present quota
of 75,000 dozen for polyester/cotton shirts only)
There are three provisions attached to the
Hong Kong undertaking to Canada; the first two of
these appeared in the 1967 and 1968 undertakings, but
the third ondis new. The Hong Kong Government
stipulates that the restraints are subject to review
(1) if they came to be regarded as establishing &
precedent for other countries to follow
(ii) if, as a result of the decision, Hong Kong
was thereby penalised in relation to her
competitors in the trade
(iii) if a review should seem necessary to the
Hong Kong Government, in the light of changes in
the circumstances affecting international trade
•
in textiles and garments. Hong Kong made it
clear that they would be looking at their
B
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