Should be voluntary export restraints operated by the supplying countries (as is now the case with respect to Hong Kong's exports of polyester/cotton made-ups to Germany).
If these were not introduced as the result of consultations
which could not last more than a couple of weeks from our initial approach, we would have to introduce import restrictions and allocate the new quotas amongst interested UK importers.
Levels of proposed restraints
12. The trade is so new, and we are proposing to take action so early, that the usual LTA concept of a base period of 12 months, ending 3 months before the first request for consultations, with 5% annual growth, is only of limited relevance in this instance. We think that it would be fair,
internationally defensible, probably acceptable to the exporting countries, and effective as protection to set the
level for 1974 in each case at the lower of: a. amounts imported into the UK in 1973 +5%; b. 2,000,000 sq yards. (As for Korea in 1972, we would provide for 'over licensing' ie we would agree to allow in the amounts contracted for in 1973 but on this occasion make the cut-off date the day the consultations start. To protect the UK clothing industry we would set internal limits in the 1974 quotas for a. all made-
up goods and b. men's and boys' shirts, as we have done for South Korea and Taiwan. (Hong Kong, with its much larger figures, has some additional sub-limits.)
Existing cotton textile restrictions
13. The 1973 quotas for exports of woven cotton textiles from these sources, based on performance when they were introduced in the early 1960's, plus 1% annual growth, are as follows:
Thailand
21,442 sq yds
Macao 2,049,922
Colombia
11
11
491,038
11
11
All three countries administer these quotas. Whereas the Macao quota allows for a reasonable volume of trade from a small territory, the Thai and Colombian levels are derisory. In view of the formula proposed above for the setting of
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