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2
IT IS ESSENTIAL THAT THE FUTURE OF THESE ARRANGEMENTS IS
SETTLED IN GOOD TIME SO AS TO ENSURE THAT THERE IS NO INTERRUPT
TO THE FLOW OF TRADE.. THE ALLOCATION OF QUOTA, ETC. IS A
COMPLICATED AND TIME CONSUMING PROCESG INVOLVING CONSULTATIONS
WITH TEXTILES ADVISORY BOARD. WE PROPOSE TO RENEW EACH
ARRANGEMENT AND THE UNILATERAL UNDERTAKING FOR ONE YEAR
FROM 1ST OCTOBER WITH SUCH IMPROVEMENTS AS CAN RE OBTAINED
IN NEGOTIATIONS. THE FINAL RESULTS WILL UNDOUBTEDLY NEED TO BE
CONSIDERED AS A PACKAGE.
N
3. ONLY NEW PROBLEM RAISED BY CANADIANS IN THE MMF FIELD
CONCERNS POLYESTER/POLYNOSIC SHIRTS. SITUATION IS THAT HONG KONG
HAS BUILT UP A SIGNIFICANT TRADE IN THESE SHIRTS WHICH ARE
VIRTUALLY INDISTINGUISHABLE IN USE FROM POLYESTER/COTTON.
CANADIANS ARE NOW VERY SENSITIVE TO FURTHER IMPORTS OF ANY
DRESS SHIRTS AND THEY HAVE ALREADY THIS YEAR IMPOSED SURCHARGE
AT PENAL LEVEL ON IMPORTS FROM SOUTH KOREA AND MALAYSIA.
MY OPINION, THE ADDITION OF ONE MORE BLEND TO AN EXISTING RESTRAINT,
ESPECIALLY ONE ALMOST IDENTICAL TO FIBRES ALREADY RESTRAINED,
WILL GIVE BUT COLD COMFORT TO THE AMERICANS.
IN
18 TO ME,
4. 1 SHOULD ADD THAT THIS PARTICULAR PROBLEM HAD BEEN DRAWN TO
YOUR ATTENTION PREVIOUSLY IN UKMIS, GENEVA TELEGRAM
REPEATED TO YOU, OF 1ST MAY (REPORTING ON JONES' TALK WITH
MACPHERSON OF CANADIAN DEPT OF FINANCE) AND IN MY TELEGRAM
463 OF 7TH JUNE. I WOULD REFER YOU, IN PARTICULAR, TO PARA. 7
OF THE LATTER TELEGRAM.
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