CONFIDENTIAL
CYPRECERED IN
REGISTRY No.51
30JUN 1969
CYPHER/CAT A
PRIORITY NICOSIA TO FOREIGN AND COMMONWEALTH OFFICE
TELNO 393
19 JUNE 1969
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CONFIDENTIAL
YOUR TELNO 714 TO NEW DELHI: TEXTILES,
BACKGROUND INFORMATION ON CYPRUS TEXTILE INDUSTRY WAS GIVEN
IN WORSNOP'S LETTER 2 TRD 29/18/2 OF 6 SEPTEMBER, 1967 TO STEWART
IN BOARD OF TRADE.
2.
CYPRUS USED ITS QUOTA TO EXTENT OF 77,000 SQUARE YARDS IN 1967, 77,500 SQUARE YARDS IN 1964 AND 23,000 SQUARE YARDS IN FIRST FIVE MONTHS OF 1969. WHEREAS IN THE PAST ONLY ONE LOCAL
MANUFACTURER ( TEXTILES MANUFACTURING CO.) MADE USE OF ITS QUOTA, AT LEAST ONE OTHER (GEORGE KALLIS) IS NOW DOING SO. THIS TREND COULD ACCELERATE TO THE POINT THAT THIS YEAR OR NEXT
CYPRUS GOVERNMENT WILL COME UNDER INCREASING PRESSURE TO DEMAND AN INCREASED QUOTA. PHYLAKTIS (CYPRUS HIGH COMMISSION) PUT FORWARD SUCH A REQUEST IN LONDON LAST YEAR BUT RECEIVED FIRM NEGATIVE ANSWER FROM BOARD OF TRADE (DATED 12 AUGUST).
3. IT WOULD SEEM THAT CYPRUS GOVERNMENT HAS ACQUIESCED IN QUOTA SYSTEM ARRANGEMENTS BECAUSE COTTON TEXTILE EXPORTS HAVE NOT APPROACHED FULL ALLOCATION. BUT, SAVIDES, PRESIDENT OF CYPRUS CHAMBER OF COMMERCE, HAS DISCOVERED THAT TEXTILES MANUF- ACTURING HAVE RECENTLY BEEN UNABLE TO EXECUTE EXPORT ORDER TO UK BECAUSE OF QUOTA INADEQUACY. HE HAS ACCORDINGLY THREATENED TO STIR GOVERNMENT TO ACTION. WE AWAIT DEVELOPMENTS. MEANWHILE, MANAGING DIRECTOR OF TEXTILES MANUFACTURING HAS ACCEPTED POSITION WITH EQUANIMITY AND IS CONFIDENT HE CAN FIND EXPORT OUTLETS IN SOVIET BLOC COUNTRIES.
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