0003230
G.F. 323
CONFIDENTIAL
14
between Groups II, III, and IV, he would be able to offer a
The total measure of compensation within the groups concerned. amount he had in mind for Groups II and III was approximately 4.0 million
square yards. He also said that as far as Group IV was concerned he would be prepared to consider some changes in specific limits. However, any increase would have to be divided pro rata between the various sensitive categories.
63. Turning to the question of bed sheets, Mr. Stewart proposed that a new category be created with a ceiling of 0.85 million square yards a year. Mr. Jeaffreson said that as Category 14 covered only bed sheets and pillow-cases, it would be more convenient simply to set a sub-limit on bed sheets in the existing Category 14. He suggested that, for the sake of tidiness, the figure should be rounded-off to 1 million square yards as the basis for discussion. Mr. Stewart replied that he would have no objection to this.
64.
Concluding the session, Mr. Jordan said he would, on the following morning, report the results of the discussions thus far to the C.A.B., and when this had been done the consultations could be resumed. He repeated that, in any event, Hong Kong would not accede to the B.O.T.'s request unless India agreed to do likewise.
Third Working Session :
3.30 p.m., Friday, 6th September, 1968
65.
Mr. Stewart said he would like to have some idea of the agenda for the afternoon's meeting. Apart from the main issue, he would like to discuss anticipation, Hong Kong exports of China Mainland-origin cloth, and other points regarding the system of export control. Mr. Jordan remarked that in view of the very tight time-table, he would prefer to deal with the main question of wide sheeting first before proceeding to other relatively minor issues.
66.
Mr. Stewart said he was principally interested in finding out the present position on anticipation. He recalled explaining the problem of rising imports to Mr. Haddon-Cave in London; as these now accounted for more than half British con- sumption (54% and 57% respectively in the first two quarters of 1968), H.M.G. really could not tolerate anticipation. In fact, the B.O.T. had refused to allow importers to anticipate against global quotas, and had promised the British industry that imports in the second half of 1968 would be checked. He was, therefore, anxious that no more than a full year's entitlement should land in Britain in 1968, and, with this in view, had suggested to Mr. Haddon-Cave that Hong Kong delay anticipation until November; such shipments would not then show in the 1968 import statistics. He thought he had made his views plain to Mr. Haddon-Cave, but now he discovered that Hong Kong had, without further reference to the B.O.T., begun to anticipate.
67.
Mr. Jordan pointed out that, under the Heads of Agreement, Hong Kong was entitled to anticipate at any time without consulting H.M.G. As for the current year, the Hong Kong industry had suggested anticipation in June. we had appreciated the B.O.T. might be embarrassed by anticipation relatively early in the year, the C.A.B. had advised, and the
But because
/Department .
CONFIDENTIAL
No comments yet.
Private notes are available after approval.