0003230
G.F. 323
CONFIDENTIAL
3.
Other countries attitudes...
13.
The department has only sketchy information regarding . the attitude of the other countries towards the future of the Cotton Textiles Arrangement. It appears that the majority are unwilling to commit themselves until they see what line the U.S. takes but the Japanese so far appear to be opposed to any ex- ... tension in 'time' or scope. Much will depend on the line taken by the U.S. but it seems likely that most countries will be in favour of the extension of the C.T.A. in time for another two or three years and opposed to a widening of the coverage.
Hong Kong's attitude
14.
,
Hong Kong's theoretical position with regard to the future of the C.T.A. is that the Arrangement should not be
There seems little extended in time or widened in coverage. likelihood however of the Arrangement being allowed to lapse at 30th September 1970, and Hong Kong would not therefore oppose the continuation of the Arrangement for another two or three years, either with some improvements or in its present form.
15:
Hong Kong would oppose a widening in the coverage of the C.T.A., but if the pressures for such a move were great,
provided Hong Kong would not oppose a widening of the coverage, there was some quid pro quo by way of improvements to some of the Articles of the present Arrangement.
16.
As to alterations, the department believes Hong Kong, · could live with:
17.
(a) a
recast Article 9 to alter the definition of cotton, by lowering the percentage cotton content;
(b) a recast Article 6(b), to remove the obligation to show deliberate substitution of non-cotton for cotton products. i
As to improvements, the department believes Hong Kong should seek:
(a) the elimination of Article 2;
(b) improved safeguards for exporting countries in the
face of the importing countries' unilateral right to impose restraints under Article 3;
(c) increased swing;
(a) carryover and anticipation;
(e) increased growth;
(f) roll-in between cotton and cotton-type textiles
in the two cases, of extension of coverage either by amendment of Article 9 or by use of Article 6(b).
/Duration......
ONFIDENTIAI