0003230

G.F. 323

CONFIDENTIAL

2

Encl. 1

3.

Mr. Nehmer introduced the U.S. delegation.

He recalled that he had already informed the H.K.

Government representatives present that the U.S.

delegation could not accept that the discussions should

be limited to consideration of problems arising from

imports of particular products but he welcomed the

opportunity to resume the earlier informal discussions

of the general situation provided in paragraph 13 of

the H.K. Government's Note of 8th October 1969 (Enclosure 1).

He said he would have several questions to raise regarding

the Note as no doubt would the U.K. and H.K. Government's

representatives on what he and his colleagues would have

to say during the course of the discussions. But first

he proposed to take each paragraph of the H.K. Government's

Note, comment on it and where possible up-date the figures

quoted in it.

4.

With regard to paragraph ↑ of the H.K. Government's

Note, imports of man made fibres in the year ending June

1969 represented 4.6% of consumption. This percentage

was based on fibre consumption by mills. It was noteworthy

that before 1968 imports had been 2% of consumption and

that at the time the L.T.A. was negotiated imports of

cotton textiles had represented 4.7% of production. It

was true that imports had moderated, in that total imports

in the first 8 months of 1969 were 27.5% above the level

/for

CONFIDENTIAL

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