COTTON TEXTILES

Imports of cotton textiles have been restrained for

many years. Hong Kong's quota amounts to about

45 per cent of our total cotton textile quotas.

EEC

The EEC also has quotas on llong Kong cotton textiles.

We are discussing with the Commission how to

assimilate our system with theirs. We expect that in

1973 the pattern and level of cotton textile quotas will be much the same as this year.

We are also discussing with our partners the question of long term textile policy in the enlarged Community.

We recognise fully the importance of establishing as far as possible equal competitive conditions for

textile producers throughout the Community.

COTTON YARN

Cotton yarn is a special problem because it is the

only significant textile product which the Dix have

liberalised and we have not. Hong Kong has agreed

that her exports of cotton yarn to us should continue

to be subject to quota in 1973.

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