0003230
G.F. 323
CONFIDENTIAL
9
E.E.C. was prominent in international efforts to discourage the United States from seeking restraints on non-cotton textiles without economic justification, he found it doubly surprising that the B.E.C. should be making such a suggestion to Hong Kong.
34.
As regards the suggestion that restraint would be justified on the grounds of the danger of substitution of Chinese fabrics, Dorward said that Ernst's colleagues in the Member States were well aware Hong Kong operated a very effective certificate of origin system which precluded any such deception.
35.
Ernst said that if he could be given an assurance to this effect, he would be prepared to go back and seek authority to enter into an agreement with Hong Kong under which Group I fabrics would be included in its ambit, but without any limit being imposed. In other words, this would mean that the concentration provisions designed for basket categories without specific limits would be applicable to Group I, rather than Article 3 of the C.T.A. He said that he was not sanguine about the prospects of obtaining agreement to this proposition but he would try.
36.
Dorward noted this suggestion and said he found it helpful. As regards the matter of origin, he would try to give Ernst the written assurance he had requested which would be based upon the understanding that the E.E.C. would require imports of cotton textiles from Hong Kong to be covered by certificates of origin; as indeed was already the practice in Germany and the Benelux.
CONFIDENTIAL
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