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18.
57.
(d) Trousers
Imports from Hong Kong registered significant increases between 1966 and 1968, mainly in the polynosic/ cotton sector (polyester/cotton trousers have been under restraint from 1967). Hong Kong maintained its leading, position in spite of substantial improvements achieved by Encl.17 Taiwan (restrained) and the U.S.A. (unrestrained).
Problens
58.
(See Enclosure 17)
The only problem in the field of non-cottons this year has been that with exports of polyester/polynosic shirts. This is discussed in Section D above.
Assessment
59.
Although Hong Kong's share of Canadian imports for non-cotton garments under restraint has decreased in the present textile year there seems little likelihood of Hong Kong obtaining any alleviation of the present restraints. Furthermore, there can be little doubt that the Canadians will expect Hong Kong to include exports of polyester/polynosic shirts with the present restraint on polyester/cotton shirts. In these circumstances the Department believes that the efforts of the Hong Kong team should be directed to securing improve- ments on the present arrangements.
Negotiating instructions
60.
61.
(a) First position
It is proposed that Hong Kong should seek: (a) roll-in of polyester/polynosic shirts with
polyester/cotton shirts;
(b) an increased level for non-cotton shirts to
take account of as much as possible of the trade in polyester/polynosic shirts this textile year;
(c) growth of 5% (Hong Kong's share of the
Canadian import narket for the three non- cotton apparel categories has dropped from 49% to 30% between 1967 and 1968. Hong Kong has received no growth since the first unilateral undertaking given in 1966);
(a) swing - the present swing margin of 10% to
be increased to 15% and to be applied to all categories;
(e) 10% carryover;
(f) 10% anticipation.
Assuming 5% growth and an increased limit for shirts to accommodate some of the trade in polyester/polynosic blends, the following approximate limits would apply for the next textile year:
/Category
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