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L.F. 323

CONFIDENTIAL

he danger for Hong Kong in such a situation is that the previous

The same could pattern of quotas might not be re-established. happen if there were unacceptable increases in imports in particular categories. The conclusion for Hong Kong would seem to be, however, that categorisation, including the categorisation between major groups of garments and fabrics, is more important than the overall quota. If quotas were to be "phased out", therefore, the best way of doing this from Hong Kong's point of view would probably be by the easing of categorisation and perhaps the re-introduction of a provision allowing carryover.

Members' Advice

24.

News received recently from London indicates that the British Government is now actively considering the Textile Council's Report and that a decision on its proposals may be made before long. It therefore seems necessary for the Hong Kong Government to send to London an early assessment of the likely effects on Hong Kong if the Report's recommendations were to be adopted. Members will accordingly be invited at the next meeting to express their views on the Department's assessment of the situation as set out above and to relay any comments which their associations may have asked them to put forward for consideration. They will also recall that, at the informal meeting on 16th April, 1969 with Mr. Daniel Jones, M.P., he suggested that Hong Kong should send a delegation to London to present the Hong Kong case to the President of the Board of Trade.

Commerce and Industry Department,

12th July, 1969.

CONFIDENTIAL

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