TNAG-0146-FCO40-182-Exports-of-textiles-to-United-States-of-America-1969 — Page 49

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IN CONFIDENCE

instead of more than 50 per cent cotton by weight

appropriate adjustments will need to be made to restraint

levels to take account of exports in the new blends or

mixtures concerned. In the case of existing restraints

the coverage will only be extended in any item by a

specific request to that effect to which the provisions of

Article 3 and Annex B will apply. The new levels thus

extablished for any extended item will apply to the export

of all products included in the wider coverage. This

provision will also apply to any existing arrangements made

under Article 4 unless mutually acceptable arrangements

not inconsistent with the basic objectives of this Arrange-

ment are agreed between the participating countries concerned.

Add new paragraph 28(a) as follows:

"Normally market disruption would not be expected to

exist in any particular item or items until at least

25 per cent of apparent domestic consumption (production

plus imports minus exports) of the item or items in question

in the participatin importing countr: concerned was supplied

by imports. In certain exceptional circumstances involving

a very rapid build-up of imports at low prices market

disruption may be held to exist before this figure is

reached but the presence of those factors would need to be

justified. To market disruption would be held to exist

where imports of an item accounted for less than 15 per

cent of apparent consumption of that item. This Under-

standing will be taken into account by the Cotton Textiles

Committee or any special panel established by it as provided

for in paragrah 3 of Article 3 in considering and making

comments or recommendations on any matter submitted to it

under the terms of the last sentence of paragraph 3 of

Article 3."

Hong Kong Section,

U.K. Mission, Geneva.

24 September 1969

IN CONFIDENCE