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。
And since
then importi from developing count
all other
here been brought Unda contiol.
the
from all sources except Sino-Soviets and
Japan (and we
CONFIDENTIAL
restrictions in the United Kingdom market
Knitted cotton textiles, principally under-
Sweaters and leisure shuts,
garments, jare not subject to quota.
Non-
cotton textiles are also free of quantitative restrictions but goods containing more than 5% by weight of man-made fibre are subject to a preferential tariff.
7. International trade in cotton goods is
governed by a multilateral agreement called
the Long Term Arrangement on Cotton Textiles (LTA) which was negotiated in 1962 within the framework of GATT. The LTA permits exporting
and importing countries to conclude bilateral agreements for restraint of trade in cotton goods; a "country" party to the LTA, has negotiated such agreements with all the major importing countries. Moreover, Hong Kong as a party to
the LTA is a member of the Cotton Textiles
Committee of the GATT. This Committee, in.
addition to being concerned with the administra-
plan to liberaise Boodate and with our approval Hong Kong, as
"Japan
within the next two or three
years);
The United
Kingdom accepted
the LTA on
behalf of Hong Kong,
and with ou
approval Hong Kong has negotiated such agreement with all imposing Counties. The Counties
party
the LTA! are
members 2
Cotton taxfites
2.
the
GATT.
tion of the LTA, undertakes studies on trađe
in cotton textiles and keeps the operation of
Although Hong Kong'sparticipates in her own right in the LTA,
the ITA under regular review.
Her representatives attend meetings of the
Cotton Textiles Committee as members of the
UK delegation. They have an opportunity to present Hong Kong's views, but in practice the expression of conflicting views by United Kingdom representatives and representatives of Hong Kong is avoided.
Committee of the Non-Cotton Textiles (Man-made fibres and Wool)
ements
8.
some
Asses,
Apart from the United States all major developed countries restrict imports of non-
cotton textiles from Japan. In other cases,
the rules of the GATT apply. In the past three years Korea, Taiwan and Hong Kong have all been using Japanese yarn and cloth for knitting and
These arranger leffect the fact that Hong Kong, being a dependant terhorng is not a separate member of the GATT and in represented in the GATT making-up into garments and pressure has built by the UK Delegation. Hong Lup to restrict this trade. Kong could become an independerlikely at one time to prese that the LTA should member of the GATT only if she wen declared to here
fill autonomy in the conduct of her external commencl
The USA seemed
suggested
be extended
relations'.