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6. OUR CONCERN IS THAT IF TAIWAN IS CUT BACK SHARPLY BY DEDUCTION
OF 1968 OVERSHIPMENT FROM PERMITTED LEVEL FOR 1969, CONTINUING DENANO
IS LIKELY TO DIVERT ORDERS HERE, THIS WOULD BRING US UP TO OUR
(REDUCED) TRIGGER POINT EARLY IN THE YEAR AND A CATEGORY LEVEĽ
ANYWHERE NEAR TRIGGER POINT WOULD CAUSE A LONG HIATUS IN SHIPMENT
CUNTIL 1ST OCTOBER 1969) WITH CONSEQUENTIAL DAMAGE, TO THIS.
SMALL, SPECIALIZED SECTOR OF OUR INDUSTRY CU.S. TOOK 25 PERCENT
OF OUR WOVEN AND SEVEN PERCENT OF OUR KNIT COTTON GLOVES IN 1967)
7. QUID PRO QUO ARGUMENT ALSO IS UNCONVINCING. HAD EXPORT LEVELS
IN OTHER TRIGGER POINT CATEGORIES WORRIED AMERICANS, THEY
WOULD UNDOUBTEDLY HAVE CALLED US.
8. WE CAN SEE A CASE FOR DEDUCTING OUR 1967/68 'OVERSHIPMENT '
CL.E. BEYOND A NOTIONAL CATEGORY LIMIT FOR THAT YEAR) FROM
A CATEGORY LIMIT WHICH MAY IN DUE COURSE BE NEGOTIATED FOR
1056/60, IF THE TRIGGER POINT IS REACHED. BUT WE SEE NO REASON TO
DEDUCT IT FROM THE TRIGGER POINT ITSELF,
FO PLEASE PASS IMMEDIATE WASHINGTON,
SIR D. TRENCH.
[REPEATED AS REQUESTED]
INTERNATIONAL TRADE DISITRIBUTION
TRADE POLICY DEPT..
HONG KONG DEPT.
N.A. & C.D.
CONFIDENTIAL
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