TNAG-0044-FCO40-80-Exports-to-the-Benelux-countries-aide-memoires-1967 — Page 166

CONFIDENTIAL

INWARD TELEGRAM

+4

COPY FOR RECISTRATION

TO THE COMMONWEALTH OFFICE (The Secretary of State)

FROM HONG KONG (0.A.G.)

171

10

JULY 1967

12'1

Cypher

D. 13 July 1967 R. 14

TI

17

1 01 02

IMMEDIATE

CONFIDENTIAL

No.1036

Addressed to Commonwealth Office (D.T.D.) Repeated to:

The Hague No.M.465

Brussels (for Martin) No.M.466 UKMIS Geneva (for Jones) No.M.467 (Please pass IMMEDIATE to all)

(15)

Your telegram No.945.

Exports of Cotton Textiles to the Benelux.

The negotiations on the Benelux's request reported in your telegram were completed today Friday. They resulted in agreement (ad referendum the Hong Kong and Benelux Governments) on the terms of unilateral undertaking by Hong Kong (for juridical reasons the Belgians cannot enter into a bilateral agreement) to restrain exports in five categories of cotton textiles during the period 18 July, 1967 to 30 September and to extend the current undertaking on cotton woven shirts for 12 months to 30 September, 1968.

2.

The new categories to be restrained consist of woven nightwear for women, girls and infants, handkerchiefs, bed linen, and household linen of terry cloth. Special provision on the lines of the current undertaking on shirts has been included to take account of traditional Benelux entrepot trade. The restraint limits have been arbitrarily determined in order to avoid basing ourselves on Benelux figures which, except for the two nightwear categories, were higher than our export figures. 5% swing rights between all categories have been secured.

3. We are anxious to avoid disruption of the trade flow. Particularly as it was necessary to suspend the issue of export licences for a few days to avoid speculative trends developing. Although formal approval of the terms of the undertaking may take some days, it has been agreed that we should implement the undertaking with effect from 18 July and the Benelux side have agreed to lift the temporary import restrictions with effect from the same date.

4. I should be grateful if you would confirm before 18 July that you have no objection to Hong Kong giving this undertaking to the Benelux Government.

(Passed as requested)

TERNATIONAL TRADE DISTRIBUTION

Copies also sent to:

-L1967

Commonwealth Office Hong Kong

Government Office

T

Commonwealth Trade Dept.

- Mr. P. Sedgwick

CONFIDENTIAL