G.F. 323

CONFIDENTIAL

Enclosure cont'd.

2.

'Footnotes

(i) Corduroy and Velveteen

Hong Kong does not ship velveteen and would like to see this

excluded. It is not included in the global categorisation

or India's.

Corduroy in the grey does not appear in other schemes of categorisation. The main suppliers of finished corduroy are Spain, Japan and the unrestricted countries with performance in 1964 of

1,658,000, 807,000 and 638,000 sq. yds. respectively.

3.

Hong Kong would therefore wish to desensitise grey corduroy

and increase the maximum of 100,000 sq. yds. for finished corduroy, say on the basis of average 1964/5 exports, which would give a ceiling for 1966 of 246,400 (1964 exports (127,200)+ 1965 exports (365,600)

(ii) Yarn-dyed (including denim)

2

There is a composite level for yarn dyed fabrics (including denim but with the exception of poplins) in the loomstate and finished

states.

(iii) (Drills, Jeans and Gaberdines

(Twills and Sateens

Only drills, jeans and gaberdines are sensitive in other schemes of categorisation. Hong Kong is allowed to ship all this category

in drills but there is a sub-limit on twills and sateens,

which

are not specifically limited from other suppliers although they

are categorised with other sloths by width.

that dong Kong should be so limited.

It appears illogical

However Hong Kong would not

propose to demand derestriction of twills, but rather to ask that

In this way

twills and sateens be combined with the drills etc.

Hong Kong's limitation re the sensitive drills would remain but there would be greater opportunity for Hong Kong to switch out of the sensitive drills into the otherwise non-sensitive

twills.

(iv) Handkerchiefs

CONFIDENTIAL

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