TNAG-0149-FCO40-185-Cotton-textiles-to-France-1969 — Page 161

CONFIDENTIAL

3.

Restrictions on items other than Cotton Textiles

7.

The French officials opened discussions on each item with an offer. But as quota levels were not negotiated, Hong Kong preserved its doctrinal position.

8.

Details of the resulting 1967 quotas compared with those for 1966 are attached. The main concessions made by the French were

(a) removal from the no quota allocated list for all

but one item (ribbons other than of cotton). This

(b)

(c)

is a concession of little significance as all the items remaining on the list were unimportant as far as Hong Kong was concerned;

the liberalisation of seven items (plastic articles, fishnets, wireless spare parts, gramophones and button blanks). The only liberalised item of si,nificance is plastic articles in which Hong Kong'a global trade in 1965 was worth HK342 million. Kong's global performance for all the other items

as only HKJ10.7 million);

Hong

pota increases for the twenty-six items still subject to controls were N.F. 1.021 million plus 2,000 pairs of rubber boots, 2,000 radios and 25,000 umbrellas. Two items (torch lights and batteries) liberalised for Japan and all other G.A.T.T. countries remain on quota for Hong Kong but batteries are subject to a voluntary restraint agresment with the Japanese,

These improvements are no worse than these conceeded by the French last year when they liberalised items worth HK$62 million in terms of Hong Kong's 1965 global exports. But it should be noted that items covering 60.3% of Hong Hong's 1965 global exports are still subject to quota restrictions.

Administration of the Quotas

9.

The French overnment should publish the invitation for importers to submit applications for licences in respect of these items under quots without undue delay. They have agreed once more to make lists of successful applicants available to the Department.

10.

Merbera are invited to note the results of the talks with the Frenc Government in respect of quotas for 1967.

Commerce and Industry Department, 2nd February, 1967.

CONFBANTIAD