"
Foreign and Commonwealth Office London SW1
Commercial Secretary at:
New Delhi
Hong Kong
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Tokyo
Seould
Karachi
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Lahore
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Telephone 01-
Your reference
Our reference MC 13/598/1
Date
27 October 1972
Dear Commercial Secretary,
COTTON TEXTILES: ARRANG TUNTS FOR 1973
1. Under the GATT Long Term Arrangement (LTA) (which governs international trade in cotton textiles) the EEC Commission lave bilateral agreements with 7 countries. These are India, South Korea, Egypt, Pakistan, Japan, liong Kong and Taiwan.
The agree-
ments run until 30 September 1973 except for Hong Kong and 1 crea, where they run until 31 December 1973.
2. We must accede to the agreements on 1 January 1973 and to hig end we have agreed with the Commission that -- subject to, necobubien between the Commission and the countries concerned (see para 7 heloz) For Hong Kong, India and Japan (with whom we have bileteral arce-
ents)cither 100% (Iong Hong) or 75% (India and Japan) of beiа 1972 tas plus the usual 1% increase per year for groth. do bh Lerea, Egypt, Pakistan and Taiwan, besides having country quotes have been able to participate in the global quota. We have thong- fore agreed with the Commission that for 1973 their country moben
hould be consolid ted to include in a full year the country po for 1972 plus 1% and actual performance in the global quota in 197
Jng 2. 1971 is, of course, the most recent year for „hich statistics are available. They will not then, of curse, be sure to participate in anything that may remain of the global quota for ot countries. For the duration of the agreements, and (if the life of the LT is extended see below) possibly longer, we shall move closer to the EEC method of categorisation. In practice, this morn that the total number of categories will be reduced to give some increased flexibility, particularly in made-ups.
-
). 1 enclose the text of a statement which we have agreed with the Commission and which we expect to make to the trade early next month. The Commission will also issue a similar statement. We shall telegraph on timing.
THE LONG TERM ARRANGEMENT
21.
The present LTA expires on 30 September 1973, and in July the Contracting larties to the GATT began a study of the facts the world textile scene production consumption, trade, tariffs and trade barriers, industrial de elopment and economic importance with the completed work to the Council by the end of the yea”. view of the importance and growing trade problems of textile sectors
/other
CONFIDENTIAL