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App.VIII 16.
Appendix VIII provides a detailed examination of the limits and coverage of the Japanese agreement for the calendar years 1967 and 1968 in comparison with those of Hong Kong for the year October 1968 to September 1969. In general, the restraint levels for Hong Kong are lower than those for Japan except for cotton trousers and shorts, where Hong Kong's limit is 276,000 dozen as compared with Japan's 124,630 dozen.
Restraint Agreement with South Korea
17.
The Canadian textile restraint agreement with South Korea for the calendar year 1968 is similar tə that for 1967, except that restraint levels over the entire range of products have been increased by 3% to 7.5% for cotton and 3% to 10% for non-cotton textiles, presumably in the form of growth, and in the non-textile sector, polyester buttons have been de-restrained.
The levels in all categories are lower than those applicable to Hong Kong.
18.
The Korean agreement on non-cotton textiles cover all man-made fibres, in contrast with Hong Kong's undertaking to restrain only three items of polyester and polyester/cotton garments. Exports of yarn from Korea are subject to restraint (yarn is not covered in the Hong Kong agreement) but exports of towels are not (they are in the Hong Kong agreement).
Conclusions
19.
The above analysis would seem to show that, by and large, Hong Kong's agreements with Canada compare favourably with those of her main competitors, with the possible exception of the towels category which is peculiar to Hong Kong and which is not subject to restraint by the other exporting countries. It would therefore appear that Hong Kong has not lost out vis-a-vis her main competitors as a result of the restraint agreements she has concluded with Canada on cotton and certain non-cotton textiles.
20.
Members are invited to note the contents of
this Memorandum.
Commerce and Industry Department,
4th June, 1969.
CONFIDENTIAL