4003230
'G.F. 323
CONFIDENTIAL
· 20
Summary
64. follows:
The Department's proposals may be summarised as
(a) that the present Article 3 agreement on apparel
be renewed for one year with improvements (Section A above);
(b) that the present Article 3 agreement on towels be recast and renewed for one year as an integral
part of the apparel agreement and with consequent swing (Section B above);
(c) that cabinet towelling be excluded from the
Article 4 agreement on fabrics and included in the towels agreement next year (Section B above); (a) that, provided the Canadians agree, the present
Article 4 agreement on fabrics be renewed for one year but that Hong Kong should not be shown to be asking for continued restraint on fabrics (Section C above);
(e) that the Department should register outstanding
quantities of polyester/polynosic shirts for shipment up to 30th September 1969 against firm contracts, and temporarily license exports of these shirts only against these contracts; (f) that Hong Kong should agree to exercise restraint
on polyester/polynosic shirts for the remainder of this textile year and should seek roll-in of polyester/polynosic shirts with polyester/cotton shirts for the next textile year (Section D above); (g) that Hong Kong should renew its unilateral under-
taking on non-cotton apparel with improvements (Section E above);
(h) that, in view of the uncertainties on the inter-
national textile scene, growth should be sought in preference to swing this year (see paragraph 8 above);
(i) that Hong Kong should seek as far as possible to
standardise the flexibility provisions of the various agreements to facilitate any future roll-in between cottons and non-cottons (sce paragraph. 7 above); (j) that industrial advisers should accompany the Hong
Kong team;
(k) that the Hong Kong tea should be given discretion
to move within the first and last fall-back positions set out in the relevant paragraphs above.
Members' Advice
65.
At the next meeting of the Board, Members will be invited to advise on the proposals set out above and, if they so agree, to nominate industrial advisers to accompany the Hong Kong delegation to Ottawa if the talks are held there.
/66.
CONFIDENTIAL