CO129-629-11 Manufacture of shirts 1-1-1950 - 30-11-1950 — Page 48

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to object to the additional duties proposed to be levied on shirts, as set out in Mr. Williams' letter, but must reserve its right to a maximum duty of 30% ad valorem on shirts of U.K. manufacture, as provided in the 1988 Agreement. H.M.G. will consult with the Government of the Republic of Ireland if it should at some time appear that this right is likely to be impaired.

I should perhaps explain that the reservation is not intended to do more than leave the door open in case our prices should come down to within the limits. We do not want to be committed for all time.

If, as Williams says, most of the Hong Kong shirts at which these duties are aimed reach the Irish Republic through Great Britain, I imagine:

(a) that our entrepot tradere will protest about the

new duties, and

(b) that the emptying of the pipeline into this country instead of the Republio (if the

additional duties are prohibitive) may not be entirely welcomed here.

•

However, as our Trade Agreement rights are confined to "the production or manufacture of the United Kingdom", I do not see how we can help on (a); and (b) is not of course a point for O.R.E.

Yours sincerely,

LABtifin

J. A. Bargin.