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These suggested figures were consistent with performance figures for the first half of 1967. Mr. Verhagen said that he accepted that there was some logic in the figures suggested for handkerchiefs and bed-linen but thought that the figure for household linen of terry cloth was much nearer to Benelux figures than to the Hong Kong ones. Mr. Haddon-Cave said it would probably be acceptable to reduce that figure to 250 tons although on the basis of performance during the first half of 1967 the result would be a standstill on the trade. It was agreed that both sides would reflect upon the figures and discuss them further at a later stage.
54.
Mr. Haddon-Cave then mentioned a small technical point. He indicated that in any agreement reached he would like to see levels of restraint represented not only in tons but also in the equivalent square yards or dozens as appropriate. He would also like to see any reserved levels similarly expressed.
Fourth Working Session : 3.30 p.m.. Friday.
7th July. 1967
55.
Mr. Haddon-Cave reported that he had contacted one member of the Cotton Advisory Board who had advised that the limit on nightwear should be divided in the ratio of 2:1 in favour of men's nightwear.
56.
Mr. Verhagen regretted that he was unable to accept Mr. Haddon-Cave's proposal to limit nightwear exports to 300 tons. Dutch import statistics showed imports amounting to 274 tons during the reference period and this quantity was already causing difficulty to their sensitive industry. He had discussed possible levels with his Minister and with the industry before leaving The Hague and had agreed to a rounded off figure of 275 tons. While not wishing to concede that export statistics should be used rather than import statistics, he was able to accept the arbitrary figures proposed by Mr. Haddon-Cave for the other items.
57.
Mr. Haddon-Cavo pointed out that the suggested figure of 275 tons for nightwear was too close to the actual import figure to satisfy his doctrinal difficulties. He proposed, and Mr. Verhagen accepted; a compromise figure of 280 tons divided into 190 tons for men's nightwear and 90 tons for women's nightwear. Mr. Haddon-Cave agreed that the men's and women's nightwear should be shown as two separate groups rather than as sub-limits within a larger group.
58.
Mr. Haddon-Cave and Mr. Verhagen considered the period for which the agreement should run. They established that the Benelux Governments could meet legal difficulties if holders of import licences issued during the period of import control were unable to obtain supplies because of export control exercised in Hong Kong. They agreed, therefore, that on 17th July the Benelux Governments should end their import control and restore free licensing.
On 18th July, the Hong Kong Government would introduce export control. They agreed that the Hong Kong Government should exercise this control until 30th September, 1968 thus bringing the control period into line with the sixth textile year.
59.
Mr. Verhagen proposed that the existing undertaking on shirts should be extended to 30th September, 1968. Mr. Haddon-Cave accepted this proposal.
/60.
CONFIDENTIAL
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