3.
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.(7) SWING TO BE :
A) UNLIMITED DOWNSWING FROM SPECIFIC CATEGORIES INTO
BASKETS:
B) 5% SWING BETWEEN SPECIFIC CATEGORIES:
C) POSSIBILITY OF SWING BETWEEN MEMBER STATES' SUB-
QUOTAS TO ENSURE FULLER UTILISATION OF QUOTA:
(8) EXPORT CONTROL WITH DOUBLE CHECKING' AT IMPORT END
(WE ESTABLISHED THIS IMPLIED NO MORE THAN PRESENT BACK
TO BACK LICENSING) BUT WITH SOME DETAILS OF ADMINISTR-
ATION' TO BE DISCUSSED WITH MEMBER STATES.
TO BE DISC
ERNST
CLAIMED THIS WOULD PUSH FRENCH A LONG WAY TOWARDS
ACCEPTANCE OF FULL EXPORT CONTROL.
JONES AND DORWARD COUNTERED ON FOLLOWING LINES:
1) HONG KONG COULD ONLY AGREE AN ARTICLE 4 WHICH WAS FULLY
COMPATIBLE WITH OTHER PROVISIONS OF LTA. TO THIS END
(2) COVERAGE OF EXISTING LIBERALISED TRADE WOULD NEED TO
BE JUSTIFIED ON GROUNDS OF MARKET DISRUPTION. THERE WAS ALSO NO JUSTIFICATION FOR CONTINUING TO RESTRICT FABRICS
(ERNST COUNTERED THAT ALL HONG KONG COTTON TEXTILES EXCEPT
YARN WERE RESTRAINED IN ONE OR MORE MEMBER STATES BUT
PROMISED TO RECONSIDER POSITION ON FABRICS):
3) MINIMUM BASE ON ASSUMPTION OF FULL COVERAGE WOULD NEED TO
BE SUM OF 1970 QUOTAS PLUS 1969 LIBERALISED TRADE PLUS
GROWTH ELEMENT ON LATTER (APPROX. 13,700 TONS), THIS
COULD BE APPROPRIATELY ADJUSTED FOR LESS THAN FULL
COVERAGE:
(4) GROWTH TO BE MINIMUM OF 5% AS PER ANNEX B OF LTA BUT IN
ANY CASE NOT LESS THAN GROWTH RATE GIVEN TO JAPAN: DESPITE
THE INDICATIONS IN PARAGRAPH 2(11) OF UKDEL EC TELEGRAM
NO. 4 TO GOVERNOR HONG KONG, ERNST PROFESSED THAT THE
JAPANESE WOULD, IF ANYTHING, BE GIVEN LESS THAN HE WAS
OFFERING TO HONG KONG.
(5) MINIMUM CATEGORISATION:
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