ZA.
limits
restraint limit.
The limit for 1978 which you have proposed represents a cutback of 328% on 1976 imports, & on 1976 exports and/74% on the 1977 Again you have not provided any justification either for the cutback in the 1977 restraint level or for your insistence that 1976 imports be used as the point of departure fro these negotiations. Again Hong Kong finds your proposals for the unacceptable, but is, I repeat, prepared to continue restraund on this
item.
70.
Knit sweaters, pullovers,etc.
This is the second
item where we have doubts as to whether there is a case under the MFA. Here again, in view of the very high quota utilisation rate achieved by Hong Kong in 1976, we are willing to continue the restraint in 1978 and regard this as a reasonable departure from the MFA. The 1978 restraint level you have proposed represents cutbacks of 283 on 1976 imports, $78 on 1976 exports and 24% on the 1977 restraint limit. You have not provided any justification for any of these cutbacks and we
cannot accept your proposal for the limit.
71.
..
Woven trousers We are prepared to continue to restrain this item. The proposed limit for 1978 represents cutbacks of 5.5% on. 1976 imports 21-2 on 1976 exports and 25.4% on the 1977 restraintedimityAgainy-no-justification-has-been-pwovidod-s and we cannot accept your proposal for the lúit,
72.
4
V.
Woven blouses In your proposal, this item includes knit blouses, but you haye not included your imports of knit
droures blouses in your proposed nor have you been able to produce any separate import statistics for knit blouses. Under the current
agreement, Hong Kong classifies its exports of knit blouses together with knit shirts and T-shirts in Category 3 because knit blouse is really a different way of calling knit shirts for women. You will find that exports of woven blouses in 1976 (23.1 million pcs) match quite closely your imports of woven blouses in 1976 (22.9 million pcs) and that our exports of knit shirts etc. in 1976 (23.1 million pcs) which included a high percentage of knit blouses (million pcs) is also not fær from your imports of knit shirts in 1976 (25.9 million pcs)