Wednesday, January 7, 1976
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very large and we agreed to write them off; in others we used the flexibilty
provisions in the agreement itself to reduce them to nil; in others we
transferred unused quota from one member state to another; in some we trans-
ferred quota from one category to another; and finally in a limited number
of cases, where the so-called "excesses" were very considerable, where in
other words we had in 1975 exported a lot more than the 1975 notional limit,
we agreed to deduct a proportion of the excesses from the 1976 quotas.
"In conducting these consultations my principal concern was to
preserve for Hong Kong at least as much a quota for 1976 as we had for 1975.
This would also ensure that we had enough quota in 1976 to be able to make
a full allocation to every quota-holder who qualifies by exporting at least
95% per cent of his quota in 1975, that is to say that in 1976 he will get
no less than his quota for the five-and-a-half months from July 18, 1975 grossed
up for a twelve-month period.
"In only one case, that of knit shirts exported to Denmark, is there
a possibility (depending on the final export figures) that we may not be able
fully to meet this requirement, but if this happens we shall be able to
compensate the quota-holders concerned by offering them quota in the same
category for another Member State or in another category for Denmark.
"The outcome of consultations like these can never be entirely
satisfactory for both sides but in this sasé I believe it represents a
reasonable compromise between positions that were originally very far apart,
and at least it provides stability and certainty for 1976".
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