TNAG-0156-FCO40-192-Export-of-textiles-to-Australia-1989 — Page 46

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G.F. 323

I

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(b)

(c)

Encl. 2

(a)

- 3-

both Governments will keep the trade under close surveillance and be ready to consult urgently under the terms of Article 3 of the C.T.A. if circumstances indicated this was

necessary;

both Governments would make the terms of the memorandum known to their respective industries but would not issue any public statement; and

a joint notification (Enclosure 2) should be sent to the Cotton Textiles Committee for information.

Export Authorisations

12.

As Members are aware, no export licences are required for shipments of textiles (or any other merchandise) to Australia, since it is one of the Scheduled Territories. In the absence of a restraint agreement there would normally be no need to impose such a requirement for the fabrics in question; but it was as a gesture of good faith, in order that the close surveillance on exports mentioned in the draft Memorandum of Understanding could be maintained, and to obtain some degree of contractual security in an uncertain situation that the Hong Kong side offered to the Australians a three month export authorisation system. Mr. Callaghan was pleased at the thought of advance warning of shipment rates, but was clearly apprehensive at the prospect of accepting the essential concomitant of guaranteeing entry for all shipments authorised. The offer has, since the consultations ended and Mr. Callaghan returned to Canberra, been formally conveyed to the Australian Government Trade Commissioner. We await his Government's response.

Conclusion

13.

Members are invited to note the outcome of the consultations and to advise if they agree with the terms of the Memorandum of Understanding. In order that this Menorandum may

be signed with the minimum of delay once the Australian authorities signify their agreement, Members are requested to write or telephone any comments to Mr. Dorward (Tel. 448666) before 15th May. If there are disagreements of substance with the text, the Chairman will ask the Board to convene to consider the matter.

Commerce and Industry Department,

9th May, 1968.

CONFIDENTIAL