01 222 7877

Ext 2014

IND.1/60/G5

Eric Ho Esq

Commerce and Industry Department

Fire Brigade Building

Hong Kong

6 August 1970

14/21

GROWTH: WIDE SHEETING AND SHEETS

13) Thank you for your letter of 30 June about the growth rate

for the sheeting and sheet quotas.

I had certainly not forgotten our conversation on this subject in Hong Kong, and I am sorry that you still feel it to be a bone of contention. As you know, we for our part believed that it was understood between us at the conclusion of the September 1968 talks that growth on the new quotas had been fixed at 3 per cent. It seems that you think otherwise. Fortunately, as you say, the point is only of academic interest so far as this year's trade is concerned, since none of the wide sheeting or sheet quotas were 95 per cent used last year; but no doubt you are thinking ahead to trade opportunities in 1971.

*

We still have to settle the arrangements for Hong Kong's cotton textile exports to the UK next year, and I suggest that the question of growth on sheeting and sheets might be tidied up as part of that exercise.

I am sure we shall

be able to come to an amicable settlement.

May I leave it at that?

P CAREY

c.c. K M Wilford Esq CMG. FCO

DM Sellers Esq. Hong Kong Government Office, 54 PallMall Si

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