CYPHER/CAT A AND BY BAG

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ROUTINE FOREIGN AND COMMONWEALTH OFFICE

TO HONG KONG

TELNO 747

21 NOVEMBER 1969.

(HKK 6/534/1)

CONFIDENTIAL

NEUTRAL

ADDRESSED TO GOVERNOR HONG KONG TELNO 747 OF 21 NOVEMBER REPEATED

FOR INFORMATION SAVING TO BRUSSELS FOR DODGE,

JONES, WASHINGTON FOR HERMANN.

BENELUX COTTON TEXTILES.

FROM JORDAN.

UKMIS GENEVA FOR

1 HAVE AGREED AD REFERENDUM 12 MONTH EXTENSION OF PRESENT

AGREEMENT ON FOLLOWING BASIS:

GROUP 1. 430 METRIC TONS. NO SPECIFIC LIMITS, I.E. CI TO THE BASKET: BUT EA RETURNS TO SHOW BI (TOWELLING, GREY) SEPARATELY WITH IMMEDIATE EFFECT.

GROUP 11. 2020 TONS. FOLLOWING CATEGORIES TO BASKET: C4, D1, D3, E1, EX E9. SPECIFIC LIMITS ONLY FOR E2 (214 TONS), EX 23 (59 TONS). EX E4 (192 TONS), E6 (149 TONS AND SUB-LIMIT ON BLOUSES REMOVED), E7 (393 TONS), EX E3 (204 TONS), E10 (34 TONS).

GROWTH FACTOR IS JUST UNDER 7 PERCENT.

CARRYOVER FROM 1969 NATIONAL ANNUAL LIMIT IS 10 PERCENT OF GROUP

AND SPECIFIC LIMITS.

ANTICIPATION IN 69 5 PERCENT OF 1970 LIMITS.

SWING STILL ONLY DOWN INTO BASKET.

CONTINUATION OF PRESENT ARRANGEMENT FOR EX-QUOTA SHIPMENTS IN

GROUP 1, CATEGORIES B1 → 8.

CASE FOR COMPREHENSIVE RESTRAINT IS STILL WEAK BUT, SINCE GROUP

LIMITS ARE HIGHER THAN CURRENT LEVEL OF EXPORTS, I RECOMMEND

ACCEPTANCE MAINLY ON EEC COMMON POLICY ARGUMENTS. REMAINING

SPECIFIC LIMITS ARE BROADLY JUSTIFIABLE ON THREAT OF MARKET

DISRUPTION.

CONFIDENTIAL

/BENELUX

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