TNAG-0044-FCO40-80-Exports-to-the-Benelux-countries-aide-memoires-1967 — Page 133

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60.

In order to avoid a speculative movement before 18th July, 1967, Mr. Haddon-Cave said he would advise his Director to suspend licensing from 8th July. This action would cause a slight gap in deliveries to the Benelux and might cause some frustration to importers holding licences issued under the import control regime. He considered these difficulties could be settled on an ad hoc

basis.

61.

Mr. Haddon-Cavo informed Mr. Verhagen that Mr. Miller would table at the Fifth Working Session on Monday a draft agreement with three appendices covoring the full year levels, the pro-rated figures covering the period 18th July 30th September, 1967 and the extension of the undertaking on shirts.

62.

Mr. Verhagen proposed that the reserve of 150,000 cotton shirts should be kept until July, 1968 when consultations would be held to decide on its disposal. In reply to Mr. Haddon-Cave, he confirmed that the quantity of 1.05 million shirts (i.e. 1.2 million minus the reserve) could be utilised as one quota for the whole of 1967, and not divided into 750,000 shirts for January September and 300,000 shirts for October December. Regarding exports of cotton woven shirts in the period 1st January 30th September, 1968, Mr. Haddon-Cave proposed a level of 900,000 shirts plus 5% growth. Mr. Verhagen accepted this proposal.

63.

Mr. Haddon-Cave felt that there would be difficulties for Hong Kong if the shirt reserve was released in July, 1968 as it . would be too close to the end of the agreement period. He suggested that the Benelux Governments should keep Hong Kong informed regularly of the volume of indirect imports and re-exports to enable the Hong Kong Government to seek consultations on the disposal of the reserve before July, 1968 if necessary. Mr. Verhagen explained that the three Benelux Governments would find it administratively difficult to provide regular statistics of third country imports and of re-exports. He suggested that the Benelux Governments might be prepared to permit Hong Kong to credit re-exports to the quota levels rather than to the reserve. Mr. Haddon-Cave pointed out that not to credit re-exports to the reserve would substantially increase the risk for the Benelux regarding third country imports. After further discussion, it was agreed that the Benelux and the Hong Kong Governments would, at the end of December, 1967, review the position of the shirt reserve in relation to indirect imports and re-exports, with a view to consider- ing whether any re-exported portion could be credited back to Hong Kong's export quota. A further review would be undertaken in March or April, 1968 if the position was not clear at the end of December. A major call-over would be held at the beginning of July, 1968 to decide on the disposal of the remainder of the reserve,

64.

Mr. Verhagen asked what would happen if the excess of indirect imports over re-exports was higher than 150,000 shirts. Mr. Haddon-Cave replied that this was a risk the Benelux Governments had agreed to take at the November negotiations.

65.

Mr. Haddon-Cave proposed, and Mr. Verhagen agreed, that the procedure on consultations on the shirt reserve could also be applied to the reserves for the other items subject to restraint. They agreed that these reserves for the period 18th July, 1967 to 30th September, 1968 should be one-sixth of the respective annual limits.

66.

Mr, Haddon-Cave suggested that it was important to include in the undertaking a general consultation clause, in addition to provisions for consultations on the disposal of reserves and on

/problems

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