FOURTH SESSION: THURSDAY, 13 JANUARY 1972 5 p.m. (MILLBANK TOWER)
IV THE UK': DECISION TO ACCEPT A MODIFIED FORM OF HONG KONG'S ALIGNMENT
PROPOSAL:
2.
Against the background of our obligation to maintain the overall level of textile imports in 1972 at the level of 1971 plus 1%, HG would have difficulty in agreeing to proposals which involve de-restrictions of products currently under restraint, or which had the effect of increasing ceilings on those products. We, therefore, wished to suggest modifications to Hong Kong's alignment proposal which would keep us within our terms of reference. If Hong Kong could accept the variant, the way would be clear for us to submit the package for approval to Ministers, to the industry and (because of the imminence of EEC entry) to the Commission.
We, therefore, put forward the following modified arrangement:
(i) Group I (Yarn):
Maintain the present ceilings and categories (which Hong Kong had already agreed).
(ii) Group II (Grevcloth):
Maintain existing ceilings and categories. We could not agree to the transfer of bleached cloth from Group III for reasons already stated.
(iii) Groups III, IV & V:
We would agree the rolling together of Groups IV & V but not the addition of Group III because it could lead to too great a concentration of yardage on made-ups. But we could agree to some upward swing from Group III to Group IV (see para. 2 (vii) below).
(iv) Group III:
Maintain existing ceilings and categories. We could not agree to the elimination of categories as Hong Kong had suggested because of the presentational aspect; similarly the administration of an EA system or a trigger point system would provide insufficient safeguard in the present climate.
(v) Group IV:
We would agree to categorisation on the EEC pattern, but we would request additional categories for (a) gloves, (b) towels, (c) bedlinen and bedsheets because of their sensitivity.
(vi) Size of Categories:
We had understood Hong Kong to have requested performance based category limits: this was agreed. But Hong Kong entered a caveat (see para. 6 of record of Fifth Session).
G
-1-