TNAG-0156-FCO40-192-Export-of-textiles-to-Australia-1989 — Page 58

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G.F. 323

CONFIDENTIAL

Enclosure I

Memorandum presented to the British High Commission. Canberra, by the Australian Government

G.A.T.T. Long-Term Arrangement Regarding Trade in Cotton Textiles

The Australian Government presents it compliments to the British High Commission and has the honour to refer to the Long-Term Arrangement regarding international trade in cotton textiles, done at Geneva on 9th February 1962, and especially to the market disrup- tion provision of Article 3 of said Arrangements.

2.

The Australian Government notes with concern the threatened disruption of the Australian market for cotton drills, denims, dungarees and jeans arising from increased imports from Hong Kong and the likelihood of further substantial increases in imports from that source.

3.

The quantity imported into Australia from Hong Kong increased from 1,067,200 square yards in the twelve months period from October 1965 to September 1966, to 1,337,700 square yards in the twelve months period from October 1966 to September 1967.

4.

Apart from this increase in imports, Hong Kong agents have been offering to Australian users cotton drill at a landed duty paid price of 0.50 dollars per square yard. The comparable Australian product is priced at 0.743 dollars per square yard. These offers have led to the placement of substantial orders for Hong Kong fabrics by Australian users and consequent serious reduction in the level of orders placed with Australian manufacturers.

5.

It is essential that the Australian industry be maintained on an economic basis. Australian production is not large and the loss of orders to date with evidence of further substantial losses likely to occur in the near future represents a threat of serious damage to the Australian industry.

6.

Taking into account the obligations which the Australian Government has to its domestic industry the Australian Government feels constrained to act at this time to avoid disruption to the Australian market. Accordingly it respectfully requests the Govern- ment of Hong Kong to limit exports to Australia of cotton drills, denias, dungarees and jeans (falling within paragraph 55.09.49 in the first schedule to the Australian customs tariff) to 1,500,000 square yards for the twelve months period beginning as of the date of this note.

7.

With a view to being not unduly restrictive this level has been set somewhat above that for which the Formula of innex F of the Long-Teru Arrangement provides.

31st January, 1968.

CONFIDENTIAL