RESTRICTED
UNDERMINED BY EXCESSIVE AND DISRUPTIVE IMPORTS FROM OTHER SOURCES, AND IN ORDER TO MAINTAIN EQUITY TOWARDS SUPPLYING COUNTRIES
ALREADY SUBJECT TO RESTRAINT, HING HAS BEEN KEEPING A CLOSE WATCH
ON THE TREND OF IMPORTS, BY MEANS OF COMPULSORY LICENSING OF IMPORTS FROM THE COUNTRIES IN QUESTION, INTRODUCED ON 1 APRIL 1973. THE TOTAL OF LICENCES GRANTED IN FOUR MONTHS AMOUNTS TO SOME TWENTY MILLION SQUARE YARDS ( ABOUT 3000 TONNES) AND HAS MADE THE PROPOSED CHANGE IN IMPORT REGULATIONS NECESSARY. LICENCES GRANTED FOR IMPORTS FROM THAILAND AND COLOMBIA HAVE ALREADY EXCEEDED THE GUIDELINE FOR ACTION, THE AMOUNTS BEING 10.7 AND 2.8 MILLION SQUARE YARDS RESPECTIVELY. HMG THEREFORE PROPOSES TO REQUEST CONSULTATIONS WITH THESE TWO COUNTRIES, IN ACCORDANCE WITH ARTICLE 3 PARA 1 AND ARTICLE 6(B) OF THE LTA, NO ACTION IS BEING TAKEN UNDER ARTICLE 3 PARA 3 TO LIMIT THE IMPORTS JUDGED TO BE THREATENING MARKET DISRUPTION BY REVOKING IMPORT LICENCES ALREADY GRANTED. BUT IN ORDER TO AVOID UNDESIRABLE FORESTALLING OF RESTRICTIONS, WITH THE STRONG POSSIBILITY THAT CONTRACTS WOULD HAVE TO BE CANCELLED, HMG IS TEMPORARILY SUSPENDING THE ISSUE OF NEW LICENCES FOR POLYESTER/COTTON TEXTILES FROM THAILAND AND COLOMBIA, WITH EFFECT FROM 23 AUGUST, LICENSING WILL BE RESUMED WHEN THE RESTRAINT LEVELS ARE KNOW. THIS INFORMATION, TOGETHER WITH ANY OTHER RELEVANT DETAILS OF THE IMPORT RESTRICTIONS, WILL BE COMMUNICATED TO YOU, AND THROUGH YOU TO THE MEMBER STATES, AT THAT TIME. UNQUOTE
IF CONSULTATIONS ARE REQUESTED BY THE COMMISSION OR ANY MEMBER STATE, WE SHALL BE GLAD TO SUPPLY FURTHER INFORMATION AND TO DISCUSS THE REASONS FOR OUR PROPOSED ACTION. IN VIEW OF THE HOLIDAY SEASON, AND OF THE FACT THAT SOME WEEKS MAY ELAPSE BEFORE RESTRAINT LEVELS ARE FIXED, YOU MAY MAKE IT KNOWN UNOFFICIALLY IF YOU THINK
FIT THAT WE HAVE NO OBJECTION TO THE DOUBLE DEADLINE OF FIVE
PLUS FIVE WORKING DAYS IN ARTICLE 2 PARA 4 OF THE DECISION BEING
STRETCHED A LITTLE IN THIS CASE. BUT THE PROPOSED ACTION HAS
BEEN AGREED BY MINISTERS HERE AS URGENTLY NECESSARY, AND WE EXPECT TO MAKE THE REQUEST FOR CONSULTATION S WITH THAILAND AND
COLOMBIA IMMEDIATELY.
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