1
IN CONFIDENCE
instead of more than 50 per cent cotton by weight
appropriate adjustments will need to be made to restraint
levels to take account of exports in the new blends or
mixtures concerned. In the case of existing restraints
the coverage will only be extended in any item by a
specific request to that effect to which the provisions of
Article 3 and Annex B will apply. The new levels thus
extablished for any extended item will apply to the export
of all products included in the wider coverage. This
provision will also apply to any existing arrangements made
under Article 4 unless mutually acceptable arrangements
not inconsistent with the basic objectives of this Arrange-
ment are agreed between the participating countries concerned.
Add new paragraph 28(a) as follows:
"Normally market disruption would not be expected to
exist in any particular item or items until at least
25 per cent of apparent domestic consumption (production
plus imports minus exports) of the item or items in question
in the participatin importing countr: concerned was supplied
by imports. In certain exceptional circumstances involving
a very rapid build-up of imports at low prices market
disruption may be held to exist before this figure is
reached but the presence of those factors would need to be
justified. To market disruption would be held to exist
where imports of an item accounted for less than 15 per
cent of apparent consumption of that item. This Under-
standing will be taken into account by the Cotton Textiles
Committee or any special panel established by it as provided
for in paragrah 3 of Article 3 in considering and making
comments or recommendations on any matter submitted to it
under the terms of the last sentence of paragraph 3 of
Article 3."
Hong Kong Section,
U.K. Mission, Geneva.
24 September 1969
IN CONFIDENCE