TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 13

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Mr. Hughes then turned to the position that would result should it be decided

that Hong Kong should not enter into a continued restraint agreement with the

Swedes and the new briefing instructions for Hong Kong for the meeting scheduled

to take place in Stockholm from June 16 (which, of course, would have to be

agreed by Ministers after first being put to the Governor of Hong Kong) were

those that Industries 1 would like Hong Kong to follow.

Mr. Jordan reminded the meeting that the Swedes had already stated that they

regarded the consultations as being conducted under the provisions of

Article XXII (1) of the G.A.T.T. There would.seem to be little point in going

to Stockholm with instructions to negotiate along lines that the Swedes would

find impossible to accept.

Mr. Hughes suggested that it would be to the advantage of Hong Kong and the

U.K. if the talks could be kept going for the time being i.e. Mr. Jordan might

offer to extend the existing restraints for a period shorter than one year

say 3 months

G

and refuse new restraints.

In the three months gained the U.K.

and Hong Kong would try to reach agreement on how to proceed over the whole

field of textile restrictions.

Mr. Stewart said that on the new items requested by the Swedes, Hong Kong might

agree to suspend the issue of export authorisations when they reached a certain

level.

This might perhaps be one quarter of the annual figure at which Hong

Kong would have been prepared to offer a restraint. He thought that might be

reasonable.

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It was not a reasonable

Mr. Jordan said this would still be a restraint.

procedure as export authorisations were issued on a first come/first served

basis and for a period up to one year. If the quantity was limited to three

months, it would, of course, be necessary to allocate the authorisations on a

quota system. In any case, three month long authorisations would not give the

trade time for delivery.

Mr. Hughes said the alternative might be to say to the Swedes that Hong Kong

/did