WE SHOULD LIKE TO BE GIVEN CREDIT FOR DELIBERATELY INCLUDING MEN'S AND BOYS' TROUSERS, ALTHOUGH 1972 EXPORTS WERE 6 PER
CENT BELOW 1971'S, WE DID THIS BECAUSE OTHERWISE THE GERMANS MIGHT CLAIM THAT WE HAD LEFT OURSELVES AN OPPORTUNITY TO MAKE UP FOR THE REDUCTION IN OUR SHIPMENTS OF COTTON TROUSERS BY SHIPPING MORE
POLYESTER/COTTON. (OUR SWITCH TO THE CONVERSION FACTORS AGREED WITH YOU IN JUNE AND OCTOBER 1972 WILL ABOUT HALVE OUR COTTON
TROUSER SHIPMENTS TO THE SIX).
RESTRAINT LIMITS.
ALTHOUGH WE ADMIT THAT MARKET DISRUPTION MAY EXIST AND MAY HAVE BEEN CAUSED BY INFORTS FROM HONG KONG, WE HAVE NOT BEEN GIVEN ANY EVIDENCE OF THIS, WE THEREFORE SAW NO REASON FOR A CUT-BACK IN THE TRADE. THE LIMIT WE CHOSE (1972 EXPORTS) THEREFORE REFLECTS THE RECENT PATTERN OF TRADE. HOWEVER, ALTHOUGH WE DID NOT IMPOSE RESTRAINT UNTIL THIS MONTH, WE ARE DEBITING ALL SHIPMENTS SINCE 1 JANUARY 1973 TO THE LIMITS WE HAVE ESTABLISHED.
PERIOD OF RESTRAINT.
WE HAVE MADE THE RESTRAINT CO-TERMINOUS WITH THE EXISTING HK/EEC COTTON TEXTILES AGREEMENT, WHILE WE SHOULD BE PREPARED ON REQUEST TO CONSIDER AN ARRANGEMENT COVERING A LONGER PERIOD, IT DID NOT SEEM APPROPRIATE THAT A TEMPORARY ARRANGEMENT, WHICH IS NOT A NEGOTIATED AGREEMENT BUT A COODWILL GESTURE, SHOULD COVER A LONGER
TERN.
*ALL GERMANY'S PROBLEMS'.
WE CAN HARDLY TAKE ACCOUNT OF ALL GERMANY'S PROBLEMS WHEN COMMUMY REQUIREMENTS HAVE PREVENTED THESE PROBLEMS FROM BEING PUT TO US AND
PRECLUDE DIRECT BILATERAL NEGOTIATIONS. IN ANY CASE WE SHOULD FIND IT DIFFICULT TO ACCEPT THAT IT WAS OUR RESPONSIBILITY TO CONTRIBUTE TO SOLVING ALL GERMANY'S PROBLEMS, E.G. THEIR OSTPOLITIK
OBLIGATIONS,
RISK OF 'GERMANY IMPORTING MORE IN 1973 THAN IN 1972'.
THIS SUGGESTION IS RATHER SURPRISING, SINCE THE FIVE CATEGORIES OF POLYESTER/COTTON GARMENTS, WHICH ACCOUNTED 96 PER CENT OF -
DUR M.M.F. GARMENT EXPORTS TO GERMANY IN 1972, WILL IN 1973 BE RESTRICTED TO THE 1972 LEVEL AND SINCE OUR ABANDONMENT OF THE OLD CONTROL OF COTTON EXPORTS SHOULD RESULT IN A CONSIDERABLE
DECREASE IN SUCH EXPORTS IN 1973.
ZENERAL