TNAG-0154-FCO40-190-Exports-of-cotton-textiles-to-Canada-1970 — Page 25

0003230

G.F. 323

CONFIDENTIAL

Ref. CR/EIC 191/5/13II

24 SEP 1969

TEXTAB M/27/69 (Limited Circulation)

MEMORANDUM FOR THE TEXTILES ADVISORY BOARD

Arrangements agreed with the Canadian Government in respect of exports of certain non-cotton garments for the period ending 30th September 1970

(This paper records the outcome of the..

recent consultations with the Canadian

Government concerning the Hong Kong

Government's unilateral undertaking to

restrain exports to Canada of certain

non-cotton garments.)

Introduction

Members are aware of the reasons which made it necessary to hold separate consultations this year with the Canadians on cotton and non-cotton items.

2.

Memorandum TEXTAB M/22/69 sets out the agreement which was reached on cotton fabrics, cotton towels and cotton apparel. The Memorandum also mentioned that the Canadian Government might be prepared to give further improvements in the cotton arrangements if some satisfactory agreement on non-cottons was secured.

3.

This Memorandum reports on the negotiations on non-cottons, held in Hong Kong on 8th and 9th September 1969. Mr. Howarth represented the Canadian Government; Mr. Jordan led the Hong Kong team.

The Consultations

4.

Mr. Howarth said that the Canadian Government wanted the present restraints on non-cotton apparel to continue and to widen the coverage in respect of shirts to include polyester/polynosic shirts. He reiterated Canadian policy of dealing with "low-cost" textile suppliers by means of limited restraints as necessary, in response to internal pressures, and emphasised that this policy's continued viability depended on being able to show in Canada that it worked. He made it clear that shirts were at present the major problem.

5.

He then went on to make the following points: (a) The Canadian blouse industry was unlikely to recover its viability and imports would take over market;

(b) the Government was prepared to see the blouse

industry's demise but its run-down had to be orderly;

1234/€

/(c)

CONFIDENTIAL