0003230
G.F. 323
CONFIDENTIAL
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(a) that Hong Kong does not accept the dropping of
the nominal restraint requirement as a concession to Hong Kong which would require some form of quid pro quo;
and
(b) that Hong Kong could not accept any future
restraint that may be necessary on these
items at a level below the limits established in the current bilateral.
Negotiating instructions
(a) First position
42.
If it is agreed that an Article 4 fabrics agreement should continue for one year after 1st October, 1969, (i.e. for the remainder of the current period of the C.T.^.), it is proposed that Hong Kong should seek:
(a) to exclude cabinet towelling from Category 5,
and to have the description of the Category amended to read:
"Fabrics, other than grey, n.c.s., except
flannelettes, other than grey and cabinet towelling, not terry";
(b) 15% swing (against the present 10%);
(c) growth (but only as a gesture);
(a) · 10% carryover;
(e) 10% anticipation.(
(b) Last fall-back position
43.
t
Hong Kong should accept renewal of the current agrement in its present form for one year, cxcept that cabinet towelling should be excluded (as in paragraph 42(a) above).
CONFIDENTIAL