GAS 350
EN AIR
IMMEDIATE
FM F C O 201753Z
UNCLASSIFIED.
DESKBY 21090OZ
HKK 121|1
2 & MAR 1978
OFFIC
3/20
FA
TO IMMEDIATE UKREP BRUSSELS TELEGRAM NUMBER 413 OF 20 MARCH,
ARTICLE 115 MENS AND BOYS 100% COTTON SHORTS FROM HONG KONG,
THE FOLLOWING IS THE TEXT OF AN ARTICLE 115 APPLICATION FOR RECEIPT BY THE COMMISSION BY 21 MARCH 1978.
1. THE UNITED KINGDOM AUTHORITIES WISH TO DRAW THE ATTENTION OF THE COMMISSION TO A SITUATION IN WHICH ECONOMIC DIFFICULTIES OF THE KIND FORESEEN IN ARTICLE 115 OF THE TREATY OF ROME ARE LIKELY TO.. ARISE AND TO SEEK AUTHORISATION TO TAKE THE APPROPRIATE MEASURES.
2. THE DEPARTMENT OF TRADE HAS RECEIVED AN APPLICATION TO IMPORT FROM DENMARK 2554 PAIRS (VALUE POUNDS STERLING 800) OF MENS AND BOYS 100% COTTON SHORTS UNDER TARIFF HEADING 61.01 6200 AND - CRIGINATING IN HONG KONG. WE WISH TO REJECT THIS APPLICATION AND ANY FURTHER APPLICATIONS FOR SIMILAR IMPORTS IN 1978 FOR THE
REASONS SET OUT BELOW.
3. FOLLOWING THE COUNCIL'S DECISION ON 19/20 DECEMBER 1977 THE UK MAINTAINS A STRICT QUOTA ON IMPORTS OF TROUSERS (INCLUDING SHORTS) ORIGINATING IN HONG KONG. ALTHOUGH THIS FREE CIRCULATION APPLICATION ONLY REPRESENTS 0.012% OF THE 1978 UK QUOTA, IF ALLOWED WILL IN OUR VIEW CAUSE THE UK GLOBAL CEILING FOR THIS EXTREMELY SENSITIVE GROUP | PRODUCT TO BE EXCEEDED. TO DATE THE 1978 QUOTA HAS BEEN OVER 13% LICENSED.
4.
HONG KONG IS A MAJOR SUPPLIER TO THE UNITED KINGDOM OF TROUSERS AND SHORTS. OVERALL IMPORT PENETRATION FOR SHORTS FROM ALL SOURCES
IS RUNNING AT 49.18% FOR THE FIRST NINE MONTHS OF 1977, COMPARED WITH 48.91% IN 1976. THE UK CLOTHING INDUSTRY IS CURRENTLY SUFFERING DIFFICULTIES AND DISRUPTION THROUGH HIGH UNEMPLOYMENT WITH A WORKFORCE OF 70,300 IN OCTOBER 1977, COMPARED WITH 72,700 IN CCTOBER 1976 AND 78,100 IN OCTOBER 1975.
15. THE INFORMATION