TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 119

0003230

!

G. F. 323

CONFIDENTIAL

Ref. CR. EIC 191/5/11/1III

R&R

TEXTAB M/19/69

(Limited Circulation).

K4331/1

"(51)

MEMORANDUM FOR THE TEXTILES ADVISORY BOARD

Exports of textiles to Canada:

Annual Review and Consultations

(on: Section A C.T.A. Article 3 Apparel Agreement;

Section B C.T.A. Article 3 Cotton Towels

Gal

Agreement;

Section C

C.T.A. Article 4 Fabrics Bilateral

1.

Agreement;

RECEIVED IN: REGISTRY No.51 112 AUG 1969

HKIC6/231/1

Section D

Section E

A Canadian request for restraint

on polyester/polynosic blend

shirts;

Hong Kong's unilateral undertaking.

on exports of polyester and polyester/

cotton blend shirts, blouses and

trousers;

having regard to certain general considerations)

Introduction

The present restraint arrangements agreed between Hong Kong and Canada expire on 30th September 1969. It is necessary therefore to give early consideration to Hong Kong's attitude towards the future of these arrangements as well as to certain problems which have arisen as a result of them. To this end the Canadian Government has been invited to send a negotiating team to Hong Kong in the first week of August. The Department understands, however, that the Canadians may not be able to field a team in Hong Kong at that time and it is therefore more likely that a Hong Kong team will need to travel to Ottawa instead.

2.

These consultations will involve consideration of a number of issues, some of which are closely inter-related. On each issue there is a range of negotiating possibilities and it seems inevitable that, in the end, a package deal will need to be arrived at which will meet the desiderata of both sides. Past experience has shown that the shape of such a package can only emerge after considerable probing during the negotiations themselves and that reasonable flexibility in negotiating objectives can be helpful in obtaining the best overall deal. It would be impossible without writing a paper of inordinate length to set out in detail the various fall- back positions the Hong Kong team should adopt on each issue. What this paper does is to set out certain general considera- tions and then, on each issue involved, to give the factual

/background

CONFIDENTIAL