TNAG-0044-FCO40-80-Exports-to-the-Benelux-countries-aide-memoires-1967 — Page 129

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it was not his intention that this aspect should hold up the discussions. He suggested the Benelux conversion rates be accepted as a working hypothesis. It would then be possible to look at the statistics in the light of the conversion factors. They could then discuss the period of restraint and the level of restraint.

45:

Mr. Verhagen queried the definition of shirts made in the Table of Concordance since it differed from that under the original undertaking. Mr. Haddon-Cave stated that in the letter of undertaking the description was merely a shortened form of presentation and assured him that all cotton woven dress and work shirts in which cotton ( represented more than 50% by weight had been caught under the current undertaking.

46.

Mr. Haddon-Cave then put forward the following groups for

consideration

(a) Shirts, woven

:....

(b) Woven nightwear for men and boys

(c) Woven nightwear for women, girls and infants

(a) Handkerchiefs

(e) Bed-linen

(f) Household linen of terry cloth

He proposed that any restraint agreement or undertaking for all items should start from some date around the present and run until 30th September, 1968, as Hong Kong preferred to work to textile years. To do so would also have the advantage of all items being covered by the same period. If carryover rights were granted, the new under- taking could overtake the existing undertaking on shirts.

47.

Mr. Verhagen said he had proposed an extension of the shirts undertaking to 31st December, 1967, because

(a) a level of 1.2 million shirts had been agreed at the

last negotiation;

(b)

a pro rata arrangement was employed on that agreement because of the uncertainty of the L.T.A. But this uncertainty had now been resolved; and

(c) E.E.C. guide lines were developing on a global approach

to textiles based on Article 4 agreements.

For those reasons he preferred to extend the shirts agreement until the end of the year only and it was the Benelux view that the agreements on the other items should also run only to the end of the year.

Should it prove impossible to achieve an overall Benelux agreement before the end of the year, there could be new negotiations. On the other hand, he would give consideration to any Hong Kong proposal for an agreement lasting till 30th September, 1968 with a suitable consultation clause.

48.

but felt

Mr. Haddon-Cave said he appreciated the Benelux position

(a) six months (indeed less) was too short a period for an

Article 3 agreement, especially when conversion from import control to export control was involved;

/(b)

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