BY AIR MAIL
J Cater Esq
Dircotor
Commerce & Industry Department Fire Brigade Exilding HONG KONG
3
21
MINISTRY OF TECHNOLOGY
1 Victoria Street
London
SW 1
16 October 1970
EXPORTS OF HONG KONG COTTON TEKSILES TO THE UNITED KINGDOM
IN 1971
Wa eze approaching the end of the period covered by the 1966-70 Ecads of Agreement and it therefore becomes necessary to conoldor tro arrangements which will operate next year until the introduction of the tariff on Commonwealth cotton textile imports on 1 January, 1972. You are, of course, fully aware of the background to decision to abandon quembitativa restrictions on imposto of cotton textiles from the end of 1971 end to introduag Arotezi a taxi?? çn Commonwealth cotton,textiles.
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no mich to extent the rzecent grote contmals for the period to the end c2 1971, oh an allcenes to the restricted cuppliers, including Hong Kong, of a furthaz 18 crowth. Under the Ilends of Arnecions a footnotɔ to paragraph C ctates that 18 the forth of United Kingdom domentão consumption of cotton tertilo goods were to inorcass parkedly in excess of the expected rato, we would undertake tɔ consider the possibility of allowing ca inozeaned granth to all restricted suppliers. Ilo growth in consumption has in foot takem pleco, not ovca the radest amount wo expected end which led us to offor the 13 enmal growth in the quotes. (In 1964 our espacead consumption of woven cotton cloth end radoeng amounted to 1856m.oq.yda,} by 1959 it had fallen to 1500a.nq.7d3, end in the "fizo? half of 1970 to 730m.eq.ydn
I should therefore like to proposa formally that the 1956-70 leado of Agrocment (with the additional categorigation of cheating and sheete negotiated in Soytenhar 1960) chould to extended for the year 1971; that the 1971 quota levolo chould
15% higher than those for 1970: end that the 95% više 51 growth formula cot out in paragraph E3 of the Heads of Agreement should apply tɔ all censitive categorica.
P CAREY