0003230 G.F. 323
18.
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As regards duration, Ernst proposed the Agreement should run for 3 years from 1st October 1970 to 30th September 1973; that is to say, the period of validity of the extension of the Cotton Textiles Arrangement. Dorward said he envisaged certain difficulties of a practical nature in implementing any agreement reached from lst October. Ernst said that if this was in any way connected with the existing restraint agreements between Hong Kong and Member States, he thought that the offer he was going to make would be such that the current agreements could easily be subsumed into the new and more generous agreement proposed. Dorward said the difficulties were connected with the calculation and allocation of quota.
19.
As regards growth, Ernst said that the E.E.C. preference was for this to be built into the annual restraint limits; that is to say, by applying a notional growth percentage to the base figure the second year limit thus arrived at would be taken as the annual limit for each of the 3 years of the proposed agreement.
20.
As regards coverage, Ernst proposed that there should be two Groups. Group I would cover cotton fabrics, grey or bleached, mercersied or not; and there would be no specific limits within the Group. Group II would cover other cotton fabrics, made-up articles and miscellaneous articles of cotton (other than yarn) and the only specific category limits which would be proposed were in the cotton clothing sector.
21.
Ernst then put forward the following offer which he said was based upon 1969 import figures for the two Groups and for the specific categories suggested :-
1969 imports
E.E.C. offers
Group I Group II
1,092 metric tons
13,171
"
1,377 metric tons
15,487
#
11
Total
14,263
#
16,864
11
14
22.
follows :-
In Group II specific category limits were proposed as
Sub-cate-
gories
Description of Products
Specific Ceilings
E 2
Undergarments, knitted or crocheted,
not elastic or rubberised
903 metric tous
E 3
Outer garments and other articles
knitted or crocheted, not elastic nor rubberised. Articles other than
knitted or crocheted fabrics and
articles thereof, elastic or rubberised 562
11
**
E 4
Woven trousers and breeches, for men and boys
2,880
#
#t
E 6
Woven outer garments for women, girls and infants
11
2,295
E 7
Shirts and bodices for men and boys
3.430
"
E 8
Other woven undergarments for men and boys
#1
1,757
£ 9
Woven undergarments for women, girls and infants
875
"
E 10
Handkerchiefs
176
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