0003230
G.F. 323
CONFIDENTIAL
- 15
A
9.30 a.m.
Third Working Session :
Friday. 27th September, 1968*
Present:
Mr. Haerum
Mr. Ivarson
Mr. Engebrigtsen Mr. Ronning
Mr. Jordan Mr. Jeaffreson Mr. Lim Mr. Yau:
Encl. 7
Memorandum of Understanding (Cotton Garments)
64.
Referring to the last sentence in paragraph 1 of the draft Memorandum of Understanding (Cotton Garments), Mr. Haerum recalled that the earlier Memorandum signed at Hong Kong on 4th July 1967 provided for consultations leading to the reintroduction of restraints on shirts, and wondered whether this should also be catered for in the new memorandum. Mr. Jordan replied that any country party to the Cotton Textiles Arrangement could seek consultations, and he thought that there was no need to make such a specific provision in the new agreement. Mr. Haerum concurred.
65.
Mr. Haerum enquired whether the swing provision should also apply to nightwear. Mr. Jordan, apologising for not having mentioned the matter before, said that since the Norwegian side had agreed to swing on the other items, the provision would also apply automatically in the case of nightwear. After consulting his colleagues, Mr. Haerum agreed that swing should also apply to nightwear.
66.
Mr. Haerum. referring to paragraph 12 on the obligations of the Norwegian Government in regard to the exchange of statistics, felt that his Government might have difficulty in this respect as the Norwegian statistics covered rather broad fields and the detailed information required would be hard to compile. It was agreed to insert the words
as far as possible' in the first line of the paragraph.
67.
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Mr. Engebrigtsen thought that the provisions of paragraph 14 were far too broad and that the equity clause should apply only to other low cost suppliers. Mr. Haerum stated that the paragraph, would be acceptable if the reference to "any third country" was deleted. Mr. Jordan reiterated that the vacuum created by Hong Kong's restraint would be of little help to the Norwegian industry if it were filled by imports from third countries. He also stressed that, while under the G.A. T. Hong ng was entitled to m.f.n. treatment in the Norwegian market, the fact was that Hong Kong would labour under a double disadvantage vis-a-vis Norway's E.F.T.A. partners, who, not only faced lower tariffs but would also gain by quantitative limitations on Hong Kong. He found it difficult to understand why the Norwegian side was so concerned about the paragraph which was really only a provision for Hong Kong to request consultations. For reasons of principle, he would have to insist on the equity clause remaining. He suggested that perhaps Norwegian objections would be overcome if the word "any" was replaced by "a". Mr. Haerum, after consulting his colleagues agréed to this proposal. It was then agreed that the llemorandum of Understanding would be initialled by both parties pending formal signature at a later date.
/Export Authorisations
CONFIDENTIAL