TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 77

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restraint from which we are currently offering to

release them as part of the U.K. package deal. Our

industry reluctantly accepted that this offer should

be made provided the Japanese tariff on wool cloth imports

was adjusted. They ask for a reduction in the alternative

specific duty (which bites on the middle and lower priced

cloth of heavier weight) to allow them more opportunity

in those ranges in the Japanese market. Traditionally

they have done best in the quality ranges of woollen

and worsted cloth (to which the specific duty does not

apply) but they now envisage a contraction at this end

of the market and growth in the demand for cheaper and

heavier fabrics.

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CONFIDENTIAL