TNAG-0153-FCO40-189-Exports-of-cotton-textiles-to-Canada-1969 — Page 140

CYPHER/CAT A

IMMEDIATE HONGKONG

TELEGRAM NO.648

CONFIDENTIAL

NEUTRAL

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

15 AUGUST 1969

ADDRESSED F C O TEL NO 648 OF 15 AUGUST R FI OTTAWA.

MY TELEGRAM 647.

CANADIAN TEXTILE NEGOTIATIONS.

ᏗᏧ ᏧᎾᏗ

I HAVE THE FOLLOWING COMMENTS ON THE POINTS MADE IN YOUR

TELEGRAM, 537:

1.1:

72

(A), (D) AND (F). THE ANSWER TO ALL THESE LIES IN THE BASIS OF CLASSIFICATION STATED IN THE FOOTNOTES TO THE CANADIAN TABLES HANDED OVER IN OTTAWA, I.E. THAT IN THEIR IMPORT STATISTICS THEY INCLUDE UNDER COTTON' ONLY 95-100% COTTON AND ANYTHING

IN. CONTAINING MORE THAN 5% M M F IS CLASSIFIED AS M M F. RESTRAINT ARRANGEMENTS, COTTON IS DEFINED AS MORE THAN 50% COTTON BY WEIGHT AS IN ARTICLE 9 OF THE C T A. LIKEWISE M M F IN RESTRAINT ARRANGEMENTS MEANS MAJOR WEIGHT M M F: THUS A LARGE NUMBER OF SHIRTS CLASSIFIED AS M M F IN THE IMPORT STATISTICS ARE IN FACT COTTON BY THE C T..A DEFINITION AND INCLUDED UNDER COTTON RESTRAINT ARRANGEMENTS, THIS WOULD INCLUDE A CONSIDERABLE PART OF THE JAPANESE SO-CALLED POLYESTER/COTTON SHIRTS

YOU REFER TO. IN THIS CONNECTION YOU WILL HAVE NOTED FROM TABLE 111 THAT HONG KONG IS SHOWN TO HAVE SHIPPED 189,195 DOZEN POLYESTER/ COTTON SHIRTS IN THE FIRST 5 MONTHS OF 1969 (AS AGAINST A RESTRAINT LIMIT ON POLYESTER AND POLYESTER/COTTON OF 75,000 DOZEN FOR 1968/69 AS A WHOLE), THE GREATER USE OF BLENDED FABRICS WOULD ALSO EXPLAIN THE FALL IN IMPORTS OF COTTON (1.E. 95-100% COTTON) SHIRTS (YOUR (F) ).

(B) AGREED, BUT IT IS STILL DECLINING AND CANADIANS WILL ARGUE THAT THIS JUSTIFIES CONTINUATION OF RESTRAINTS. PRODUCTION FELL BY ABOUT 14% BETWEEN 1966 AND 1968 AND CANADIAN PROJECTIONS FOR 1969 SHOW A POSSIBLE FURTHER FALL OF OVER 15% COMPARED WITH.

LAST

REF.

(

PEXT

R F

CONFIDENTIAL

REGISTRYNs.51 18 AUG 1969

HICK6/21/1

/1968.