TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 77

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would like to propose formally thet for tho restraint year 1968/1969 polyester/polynosic shirts should be included in the existing quota for polyester/cotton shirts. When Mr. Jordan pointed out that this went even beyond the proposal tablod on polyester/polynosic shirts last year, Mr. Howarth modified his proposal to include polyester/polynosic shirts under the polyester/cotton shirts quota which, should be increased by 2%. Mr. Jordan said that it would be quite impractical for the Hong Kong Governmont to agree to such a proposal as liccnces for the 75,000 dozen polyester/cotton shirts for the restraint year 1968/1969 had already boon issued at the beginning of the restraint year and could not be withdrawa, and far more than 1500-odd dozon polyester/polynosic shirts (1.c. the proposed 2% increase in the quota) had already been shipped to Canada. Mr. Howarth said that he thought the Canadian authorities would receive well a statement that while it was in practice impossible to impose a quota of 75,000 dozen plus

2% increase for both polyester/cotton and polyester/polynosic shirts in the current restraint year, nevertheless the Hong Kong Government accepted such a proposition in principle. Mr. Jordan said that such a statement would prejudice Hong Kong's negotiating position for the next restraint year.

Still Mr. Howarth agreed that this was so. underlining that he had no negotiating authority, Mr. Jordan said that another approach to the problem would be to take the level of polyester/polynosic shirts exported from Hong Kong to Canada) during the 1967/1963 restraint year. While ho had no precise information as to what the level might be he hazardod a guess that it might amount to 20,000 dozen. What-. ever the figure was, it' might be added to the existing polyester/cotton quota so as to establish a single quota for polyester/cotton and polyester/ polynosic shirts for 1969/1970. Mr. liowarth said that the Canadian Government would certainly be prepared to consider on its merits any counterproposal which Ilong Kong might wish to put forward. Ha could not comment on the merits at this stage of the approach outlined by Mr. Jordan. He underlined the political necessity of some action being taken in the near futuro.

(vi) Follow up

Z

It was agreed that Mr. Jordan should report the

If outcome of the meeting to his authorities. necessary he would ask Mr. Howarth through Mr. Gallow to put the Canadian's new proposal on polyester/ polynusic shirts in writing. After discussions with his authorities Mr. Jordan would either put forward a counterproposal and/or suggest negotiations should take place in Hong Kong which would both deal with polyester/polynosic and polyester/cotton shirts and other items under restraint. Mr. Howarth said that he hoped the matter of polyester/polynosic shirts could be sottled outside a general nogotiation, as it would be difficult for the Canadians to send a team to liong Kong in July, While waiting for Mr. Jordan's response to his proposal he nevertheless would consider whether it might be possible to put together a Canadian team to go to Hong Kong in July.

Commercial Department

Ottawa

July 1969.

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