C. & 1. 13 (Rev.) 2700011
50,000-7/68-B64568
TELEGRAPHIC ADDRESS:
***CANDIHONG" HONG KONG
F.:
YOUR REF.:
д кой
CR/EIC 294/5/11/5
Dear Bunny,
II
CONFIDENTIť
47
COMMERCE & INDUSTRY DEPARTMENT,
FIRE BRIGADE BUILDING,
HONG KONG.
11 June
. 1969
پور
solow
I am afraid that the S. of S. saving despatch No. 712 on the wide sheeting controversy has been waiting for me to do the first draft of a reply. Since David Jeaffreson has left the department and Dominic Wong has left our 'Europe' Division, I'm the only one left who faced you and Shaun throughout those long meetings. And as you know, I was away when the despatch reached here, my return to Hong Kong was delayed by the trip to Stockholm, then I had to prepare to return to Geneva to meet the Swedes again, then the annual consultations with the French, and shortly afterwards had to take over as Director with no replacement as Deputy Director and meet the Swedes again. I'm afraid that as a result this subject had to be left aside. Though it is important, it was not urgent because the only point at issue is the growth factor to be applied in 1970.
It has been suggested that it might be helpful if I wrote to you about this, explaining rather less formally than would be necessary in a despatch, the reasons why we should find it difficult to accept the line taken in paragraph 7 of the saving despatch.
I expect to be in London on 23 and 24 June after my trip to Stockholm, so I am sending you this longish exposition of our attitude in advance. I should like to discuss it with you before any further action is taken on either side.
Head C of the Heads of Agreement provides for the growth factor of 1 per cent per annum to be applied to the overall and the group and category levels.
In addition, Head E5 provides that the sensitive category ceilings will be increased by 5 per cent each year for categories in which the previous year's exports reached 95 per cent of that year's ceilings.
The August 1968 Aide-Memoire on wide sheeting and sheets said that "HMG would find it very difficult to contemplate any increase" but it did not rule out the possibility.
Hong Kong's line throughout has been that the discussions should proceed from the basis of the Heads of Agreement and that any agreement reached on the wide sheeting issue should be expressed in modifications to the Heads of Agreement.
We were therefore expecting Stewart to raise the issue of growth in the consultations but he did not do so.
RECEIVED IN
R GETRY N».51
1 8 JUN 1969
1+KK6/548/1
In the/
CONFIDENTIAL
URT
REF.
17
IXT
C_F
No comments yet.
Private notes are available after approval.