0003230 G.F. 323
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83.
(c) compensation for grey sheeting would be 4.3 million square yards, this being the difference between the old and the revised level. For finished sheeting it would be 1.9 million, the difference between British 1967 imports and the proposed level. This compensation would be distributed pro rata among most of the categories within the respective groups but the B.O.T. could not countenance any increase for drills in Category 4 (drills, jeans, etc.) and could only see the limit for Category 9 (corduroy) raised to 250,000 square yards;
(d) as Category 14 covered only sheets and pillowcases
the limit could be reduced to 3 million square yards (with a sub-limit of 1 million square yards for sheets), and the remaining 3.5 million square yards could be spread pro rata over other Group IV categories with specific limits.
Mr. Jorden said that, from the point of view of certainty, arrangement for one year in such circumstances would not be satisfactory. He still considered Mr. Stewart's proposals inadequate. As the time left for further discussion was so short, he wondered whether Mr. Stewart would be able to return to Hong
Mr. Stewart Kong after he had consulted with the Indians in Delhi. regretted that this would not be possible as he was fully committed in the coming weeks. Since he had already laid all his cards on the table, he would like to be able to leave with a clear picture of Hong Kong's reactions.
84.
Mr. Jeaffreson commented that the main problem for
If Hong Kong remained the magnitude of the proposed cut-back. the difference of 5.5 million square yards (i.e. 23.0 minus 17.5) between the two sides could be split giving a limit of 20.25 million for Hong Kong's exports of wide sheeting and sheets, then there might be a chance that Hong Kong Government would be able to accept the package on the advice of the C.A.B.
85.
Mr. Stewart could not countenance this proposition, but was prepared to make an absolutely final offer as follows:
(a) loomstate wide sheeting
finished wide sheeting
(including all yarn-dyed)
sheets
million square yards
11.5
6.0
1.0
Total
18.5
(b) yardage for compensation to be calculated and distributed
on the basis already proposed (see paragraph 82 above);
(c) the distribution of yardage from Category 14 need not be strictly pro rata provided that less than 3.5 million square yards was involved (see paragraph 82 above);
(a) the documents containing the modifications to be worded
in such a way as to make it clear that the reduction in category levels was not to be followed by similar requests using the present case as a precedent;
/(e) ..
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