0003230

G.F. 323

CONFIDENTIAL

· 16 -

Encl. 8

Export Authorisations

68.

Cotton Garments

Mr. Haerum enquired whether the quantities for export authorisations would be unlimited in the first instance. Mr. Jordan replied that there were no quantitative limitations under an Export Authorisation system, but in practice the opportunity for large shipments was somewhat limited since export authorisations would only be issued against evidence of firm contracts and were valid for just three months.

69.

Mr. Haerum said he had a problem regarding the E/A letters since the exchange would have to be approved by the King in Council. Mr. Jordan suggested drafts could be initialled by both parties to be followed by a formal exchange of letters through the Norwegian Consul General. Mr. Haerum agreed to this.

Restraint on non-cotton items

Encl. 9

70.

Encl. 10

unilateral undertaking

Mr. Jordan said that since this was a on the part of Hong Kong he would suggest a formal hand over of the Undertaking which the Norwegian Government could later acknowledge.

71.

Referring to the limitation on knitwear, Mr. Engebrigtsen asked whether it was possible to include man-made fibres other than acrylic to provide for any shift to other similar fibres. Mr. Jordan replied that this would be extremely difficult since the Cotton Advisory Board had already agreed to the present wording. In any case, the undertaking was for one year only and it was highly unlikely that a major shift would take place within such a short period.

72.

Mr. Jordan then brought up the problem of some 1,700 dozens of woollen and acrylic knitwear for which export licences had already been issued for shipment on or after 1st October, 1968. As Mr. Haerum and his colleagues were not keen to permit entry of these goods ex quota, Mr. Jordan confirmed that they would be debited against the restraint limit.

73.

On synthetic blouses and jumpers, it was agreed that the limitation should apply only to garments of polyester, nylon (polyamide) and rayon fibres.

Export Authorisations

Non-cotton items

74.

In reply to a query by Mr. Haerum, Mr. Jordan explained why reference was made to the General Agreement on Tariffs and Trade in paragraph 5 of the draft letter.

75.

Mr. Engebrigtsen enquired whether it was necessary to explain the reasons for paragraph 7. Mr. Jordan did not think so and Mr. Haerum agreed.

76.

It was also agreed that the exchange of letters should take place in the same way as the E/A letters for cotton items (paragraph 69 above).

Press Announcement

·

77.

Mr. Jordan referred to the question of a press announcement at the conclusion of the negotiations and asked Mr. Haerum for his views. Mr. Haerum would like to let Hong Kong decide on what should be said. Mr. Jordan stated that in the circumstances he would prepare a draft, and let Mr. Haerum and his colleagues have an opportunity to comment before issue.

CONFIDENTIAL

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