TNAG-0156-FCO40-192-Export-of-textiles-to-Australia-1989 — Page 49

0001730

G.F. 323

1/306CA (38 3/1/3

38/CA

Vec

CAB/453

CONFIDENTIAL

Ref. CR/EIC 891/5/11

'18 MAR 1968

MEMORANDUM FOR THE COTTON ADVISORY BOARD

Export of Cotton Textiles to Australia Request for Restraint on Exports of Drills, Denims. Dungarees and Jeans'

Introduction

At the 198th meeting, members considered an Australian restraint request reported in CAB/451. In accordance with their advice, the British High Commission in Canberra was asked to hand over to the Australian Government the note at Enclosure 2 to that memorandum.

The Australian Response

Encl.1 2.

response.

3.

At Enclosure 1 is the text of the Australian Government's

In summary it:

(a) reiterates the Australian Government's concern about the rate of importation of cotton drills, denims, dungarees and jeans from Hong Kong and Japan;

(b) explains that, in presenting its first note, the Australian Government did not adhere strictly to the C.T.A. as it

had envisaged the possibility of "other courses of action"

.

It

as an alternative to formal recourse to the C.T.A. illustrates this by reference to industry-to-industry arrange- ments made with the Japanese;

(c) notes (erroneously) that the Hong Kong Government had

offered to enter into immediate consultations, whereas in fact our note had said we envisaged consultations could be held well within the 60 day period prescribed in Article 3 of the C.T.A., provided an acceptable request was received;

(d) suggests that such consultations should be held immediately in Canberra or, if the Hong Kong Government so prefers, in Hong Kong or Geneva.

An accompanying statement supplementing the incomplete data included in the original Australian note, which was at enclo- sure 1 to CAB/451, states that:

(i) the fabrics referred to in the restraint request are

"woven fabrics, wholly of cotton or containing more than 50% by weight of cotton and less than 20% by weight of wool and less than 20% by weight of man-made fibres, weighing not less than 6 ounces per square yard and not more than 15 ounces per square yard, whether unbleached, bleached, printed, dyed or coloured, and known as drills, denims, dungarees or jeans";

(ii) the 25% increase in imports from Hong Kong between the, 4th and 5th Long Term Years (1,067,200 sq. yds. to 1,337,700 sq. yds.) represented 60% of the total increase in imports between these two years' (3,000,400 sq. yds. to 3,499,000 sq. yds.);

(iii) substantial orders have already been diverted to Hong

Kong from Australian weavers and a further diversion is imminent;

/(iv) Australian

CONFIDENTIAL