TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 131

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G.F. 323

CONFIDENTIAL

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(a) that Hong Kong does not accept the dropping of

the nominal restraint requirement as a concession to Hong Kong which would require some form of quid pro quo;

and

(b) that Hong Kong could not accept any future

restraint that may be necessary on these

items at a level below the limits established in the current bilateral.

Negotiating instructions

(a) First position

42.

If it is agreed that an Article 4 fabrics agreement should continue for one year after 1st October, 1969, (i.e. for the remainder of the current period of the C.T.^.), it is proposed that Hong Kong should seek:

(a) to exclude cabinet towelling from Category 5,

and to have the description of the Category amended to read:

"Fabrics, other than grey, n.c.s., except

flannelettes, other than grey and cabinet towelling, not terry";

(b) 15% swing (against the present 10%);

(c) growth (but only as a gesture);

(a) · 10% carryover;

(e) 10% anticipation.(

(b) Last fall-back position

43.

t

Hong Kong should accept renewal of the current agrement in its present form for one year, cxcept that cabinet towelling should be excluded (as in paragraph 42(a) above).

CONFIDENTIAL