1025230

G.F. 323

CONFIDENTIAL

- 2 -

(iv) Handkerchiefs

(v)

Hong Kong's 1965 maximum was 86,354 sq. yds.

The

But the level is so low

category was not fully shipped.

that it is difficult to secure orders for such small

quantities.

The Sino-Soviet countries, India and Japan

were the main shippers in 1964 with over 1 million yards.

Developed countries shipped four times as much as Hong

Kong. Hong Kong therefore seeks an improvement in this

level to 200,000 sq. yds., the equivalent of 100,000

dozen handkerchiefs.

New Products

The agreement in principle was that the 1966 level for the

group of new products should be based as far as practicable

on the average annual exrarts from Hong Kong over the years

1962-64. The export figures available are shown on the list

There are unfortunately no licensing figures to

hand as these products have not previously been restrained

and the trade statistics do not identify some of them.

is therefore Hong Kong's suggestion that the best way to

best

attached.

It

proceed is to have regard to the returns of yardage

submitted by shippers in respect of 1965 shipments of the

new products. On this basis the level for 1966 would be

2.3 million square yards.

(vi) with the deletion of the distinction between "Printed

piecegoods" and "other finished piecegoods" a problem

arises over the level for the new category "Poplins

(including yarn-dyed)".

Previously printed poplins were caught within Category 11,

all other printed fabrics which had a sensitive level of

9,042,198 square yards, whilst other poplins were caught in Category 16 Poplins (including yarn-dyed) which had a

sensitive level of 18,605,330 square yards. Hong Kong

proposes to isolate shipments of printed poplins from the . total shipment (in Category 11 in 1965) which were below

/ the sensitive

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