CONFIDENTIAL
Fol. 1
GATT· Long-term Arrangement Regarding Trade in Cotton Textiles
Reference is made to the British High Commission's Memo- randum of 9th February 1968 conveying the reply of the Hong Kong Government to a request made by the Australian Government on 31st January relating to exports to Australia from Hong Kong of cotton drills, denims, dungarees and jeans.
2.
It is evident from the reply of the Hong Kong Government that the Australian Government's request contained in the Memorandum handed to the Minister (Commercial) of the British High Commission, Canberra by the Deputy Secretary of the Department of Trade and Industry on 31st January has been somewhat misinterpreted by the Hong Kong Government. This may have been due to a certain impre- cision in the wording of the Memorandum of 31st January. In part, this imprecision was deliberately introduced in order to leave open the possibility that, in the consultations which the Australian authorities had expected to follow the presentation of its Memorandum, other courses open to the two Governments to achieve the desired result in respect of the goods concerned could be discussed as an alternative to the formal recourse to the provisions of the GATT long-term arrangement regarding trade in cotton textiles.
3.
The Australian authorities are concerned about the rate of importation of those goods both from Japan and from Hong Kong. In respect of imports from Japan, industry associations in Japan and Australia have, over the years, evolved a sufficiently close working relationship to enable a request for restraint on the part of Japanese exporters to be dealt with by means of arrangements between the two industries with the endorsement of the two Governments, rather than through the formal procedures of the GATT long-term arrangement regarding trade in cotton textiles.
It was thought that before a formal notification was made to the GATT in respect of the approach to the Hong Kong Govern- ment, the way should be left open for consideration in the envisaged consultation whether the Hong Kong Government may not prefer to explore less formal means of responding to the Australian Government's request.
5.
Despite the imprecision of wording already referred to the Australian Government had expected the Hong Kong Government in reply to offer to enter into immediate consultations, and this offer is welcomed. The Australian Government would hope that these consul- tations could begin immediately in view of the urgency of the issue and because a month has already gone by from 31st January, the date of the Australian Government's approach.
6.
It would be most convenient to the Australian Government for these consultations to be held in Canberra, but if the Hong Kong authorities have strong preferences' for Hong Kong or Geneva this would be agreeable, to us.
7.
As statement in support of the Australian Government's request covering the points on which the Hong Kong Government has asked for further information is attached to this Memorandum.
8.
The Australian Government would appreciate an indication of the Hong Kong Government's reactions to this further Memorandum as soon as possible.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.