0003230
C.F. 323
CONFIDENTIAL
11
(b) growth on the towels limits;
(c)
to include cabinet towelling within the cabinet towels limit to take account of as much as possible of this year's trade in cabinet towelling;
(d) to have whatever other flexibility provisions
are applied to apparel, applied also to towels.
The towel limits would then look something like this
Category
Description
LA
5
Cabinet towels*
Approximate Limit
240,000 + lb.
6
Terry jacquard towels
275,000 + lb.
7
Industrial wiper towels)
250,000 + lb.
Other towels
730,000 + lb.
* including cabinet towelling which may be shipped
in lieu of cabinet towels at a conversion rate of 1 lb. to 2.715 square yards.
(b) Last fall-back position
36.
It is proposed that Hong Kong should accept a separate towels agreement, but with swing between categories of towels and some growth. Hong Kong should refuse to establish a sub-limit in the fabrics bilateral (if it is continued) for cabinet towelling or to count exports of cabinet towelling against the level or limit for cabinet towels if this is set at a level which does not take account of at least a part of our exports of cabinet towelling this
year.
CONFIDENTIAL