0003230
G.F. 323
CONFIDENTIAL
4
Restraint Agreement with Singapore
11.
It will be noted from Appendix III that the three year restraint agreement with Singapore, commencing 1st January, 1968, covers only shirts and trousers but cotton and polyester/cotton blends are rolled in.
12.
The Singapore agreement also provides for shipment of shirts and slacks during 1967 and early 1968 to be deducted from the overall restraint limits. The deductions are, however, made in three equal annual instalments. This means, in effect, that Singapore will only be permitted to ship a net 18,000 dozen shirts and 28,000 dozen slacks per year over the three years from 1st October, 1968. If the Hong Kong cotton and polyester/cotton limits are added together for comparison purposes, for the year commencing 1st October, 1968, they equal 217,000 shirts and 331,000 dozen slacks.
13.
As far as is known to the department, there is no swing provision in the Singapore agreement.
Restraint Agreement with Malaysia
14.
The Malaysian agreement is similar to that between Canada and Singapore. Under this agreement, Malaysia has agreed to restrain exports of cotton and polyester/cotton shirts and trousers for a period of three years beginning 1st September, 1968 at annual limits of 32,853 dozen, 33,479 dozen, 34,124 dozen shirts and 28,900 dozen, 29,468 dozen and 30,053 dozen trousers. There is also a provision that in each of the three years, a deduction in respect of excess shipments previously made will be made from the notional restraint limit. In the case of shirts, the deduction will be 11,986 dozen a year; and in the case of trousers it will be 9,974 dozen a year. Thus, the net annual limits for the three years will be 20,867 dozen, 21,493 dozen and 22,138 dozen shirts and 18,926 dozen, 19,494 dozen and 20,079 dozen trousers as compared to Hong Kong's total cotton and polyester/cotton limits of 217,000 dozen shirts and 331,000 dozen slacks for the year commencing 1st October, 1968.
Restraint Agreement with Japan
15.
The Japanese voluntary restraint agreement for the calendar year 1968 was concluded on 18th November, 1968. The agreement remains unchanged from that for 1967 except:-
(a) Limits: Limits for all items were increased
`generally by amounts varying from 1% to 5%,
with the lowest in cotton shirts and fabrics and the highest in rayon and synthetic outerwear and nylon fabrics. In the case of elastic braid the increase was 10%. (Growth in the 1967 agreement was only allowed in synthetic shirts, blouses and trousers.)
(b)
De-restrained items: Cotton innerwear including nightwear was de-restrained.
/16.
CONFIDENTIAL