003230
G.F. 323
CONFIDENTIAL
Hong Kong Government's Reply
to Australian Memorandum
Enclosure
2
"The Hong Kong Government is unable to accept the Australian Government's request for the immediate restraint of certain exports of cotton textiles as it does not comply with the provisions of Article 3 of the Cotton Textiles Arrangements.
The Hong Kong Government is, however, willing to enter into consultations with the Australian Government in accordance with paragraph 1 of Article 3 end would expect that such consulta- tions could be held well within the 60 day period referred to in paragraph 3 of Article 3, provided the request is accompanied by a detailed factual statement of the reasons and justification for the request.
In this connection, the Hong Kong Government points out that the Record of Understandings reached by the Cotton Textiles Committee in 1962 provides that resort to Article 3 should be limited to cases of market disruption or, as claimed in this case, threatened disruption, as defined in Annex C to C.T.A. The Australian Memorandum of 31st January makes reference only to increased imports of certain fabrics from Hong Kong and to the price differential between such imports and Australian products.
The Hong Kong Government is having difficulty in identifying the exact range of constructions covered in the Australian Memorandum. It ppears to cover "cotton denias, dungarees and jeans", weighing not less then 6 ounces per square yard and not more than 15 ounces per square yard and containing less than 20% by weight of wool or of man-made fibres, whether grey or finished. The Hong Long Government would be grateful for guidance as to the precise range of constructions affected so that exports can be identified in the Hong Kong Trade Statistics.
The Hong Kong Government assumes that the Australian Memorandum has been conveyed to the Cotton Textiles Committee as required by paragraph 1 of Article 3 of the Cotton Textiles Arrangement, but would b、 grateful for confirmation."
5th February, 1968.
CONFIDENTIAL
2
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