TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 118

CONFIDENTIAL

HONG KONG TELEGRAM NO. 8 TO WASHINGTON

3

PENDING TOTAL LESS THAN THE FIGURE AT WHICH THE AMERICANS CALLED

FOR CONSULTATIONS (356,479 L3. ADULTS' CULOTTES). I THEREFORE SEE NO REASON WHY ALL OUTSTANDING ORDERS FOR ADULTS' CULOTTES SHOULD NOT BE APPROVED.. IF THE AMERICANS ACCEPT THIS, WE COULD

UNDERLINE NEXT WORD AGREE A LIMIT IN THIS CASE CAT 356,479 LB.). I WOULD ONLY LICENSE SHIPMENT OF THE 27,174 LB. CHILDRENS'

CULOTTES AWAITING APPROVAL' AGAINST CAT. 54 QUOTA. AS

REGARDS THE OTHER 117.344 L3. CHILDRENS' CULOTTES (1,E. APPROVED

SHIPMENTS) THESE HAVE BEEN PROPERLY CLASSIFIED BY HE BASED ON

PREVIOUS U.S. CUSTOMS ADVICE AND REPRESENT A LEGITIMATE TRADE

WHICH HONG KONG NOW STANDS TO LOSE FOR THE FUTURE. THESE 117.344 LS. REPRESENT 36,523 DOZ. GARMENTS. I AM PREPARED NOT TO PRESS THAT THE PRESENT SPECIFIC LIMIT FOR MERGED CATEGORIES 54/63(1) BE

RAISED TO ACCOMMODATE THIS LEGITIMATE TRADE PROVIDED THE AMERICANS

AGREE TO DISREGARD THE 117,344 LB. CHILDRENS' CULOTTES FOR THE PURPOSE OF MEASURING PERFORMANCE AGAINST THIS YEAR'S CATEGORIES

54/5301) LIMIT, ALTERNATIVELY I AM PREPARED TO UNDERLINE NEXT VORO AGREE TO A LIMIT OF 495,337 LB. CTODAY'S FIGURE USING OUR

CLASSIFICATION) WHICH WILL TAKE ACCOUNT OF ALL LICENSED SHIPMENTS

PLUS APPLICATIONS PENDING APPROVAL, LEAVING THE CLASSIFICATION ISSUE

TO BE RAISED AGAIN BY THE U.3. AT A LATER DATE IF THEY SO WISH.

THE FOREGOING ARGUMENTS ARE TO SUPPORT THE FOLLOWING BRIEF :-

(1) TO SECURE APPROVAL FOR ALL SHIPMENTS AND OUTSTANDING COMMIT-

MENTS FOR ADULTS' CULOTTES CI.E. 356,479 LB.).

(11) TO HAVE THE 117, 344 LB. CHILDRENS' CULOTTES WRITTEN OFF AS A

QUID PRO QUO FOR HONG KONG NOT PRESSING FOR INCREASES IN CAT.

54/63(4),,OR ALTERNATIVELY

(HD) TO SECURE APPROVAL FOR ALL, SHIPMENTS AND OUTSTANDING

COMMITMENTS ADULTS' AND CHILDRENS' CL.E. 495.337 LB.>

IF NEITHER IS ACCEPTABLE, THEN A LIMIT WILL HAVE TO BE IMPOSED UNDERLINE NEXT WORD BUT HONG KONG WILL RESERVE THE RIGHT TO RAISE

THE QUESTION OF CLASSIFICATION OF CULOTTES AT THE ANNUAL REVIEW.

CONFIDENTIAL

(FOR

FILX 6/20/1