C.P. 393
CONFIDENTIAL
1
group without limit but subject to the categorisation arrangements. Similarly, finished piecegoods yardage may be transforred into the loomstate group without limit, but subject to the categorisation arrangements.
3.
The newly restrained products will form a separate group and no transfer into or out of this group will be allowed.
E. CATEGORISATION
Within the separate groups certain items will be categorised and exports limited to specific ceilings as shown in the enclosure,
2.
Other items will not be limited. Subject to satisfactory arrangements being co.. ed in accordance with paragraph 8 they will be combined into N.E.S. categories in each group and there will be no provision for them to be automatically limited when exports from Hong Kong attain a level of 3 million square yards. However, the Board of Trado may neod to consider the overall level of importe into the United Kingdom from restricted suppliers of particular items in the N.E.S. categories. If these cause difficulty they may have to review, the situation with a view to oatablishing categories with specific limits for such items. These arrangements would apply to all restricted suppliers.
3.
*
The category ceilings for 1966, will be based on the annual restraint levels for 1965 as indicated in Appendix 3 of the Record of Modifications to the 1963-5 undertaking and brought up to date aș shown in the enclosure.
4.
•
i
In 1967 and in each of the subsequent years up to and in- cluding 1970 the ceilings will first be increased by the 1% growth factor.
5.
In 1967 and in each of the subsequent years up to and including 1970 the ceilings will be further increased by 5% in those sensitive categories in which Hong Kong's exports in the previous year, reach 95% or more of, the ceilings established for that year.
6.
There will be no reductions from the 1966 ceilings, or from the subsequently established ceilings, in any categories in which
· export performance falls short of the ceilings.
Note
r
:1
This paragraphmeans that the 5% increase may be cumulative. over the four years 1967-1970 provided performance in each year is at least 95% of the previous year's ceiling.
7.
1
In calculating the annual ceilings no account will be taken of anticipations.
8.
!
The Board of Trade have undertaken to consider the possibility. of Hong Kong instituting an export authorisation scheme in respect of the items included in the N.E.$. categories to protoct! Hong Kong! forward commitments for such items ns may l^ter be separately categorised and limited.
Note
i
F
The item hendings for such a schome will be considored Jointly by Hong Kong and the Board of Trade.
J
r. ANTICIPATION/CARRYOVER
CONFIDENTIAL MINI
No comments yet.
Private notes are available after approval.