TNAG-0241-FCO40-277-Agreements-under-GATT-long-term-arrangements-for-exporting-o-1970 — Page 38

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gories, it classifies such components in the separate categories applicable to each part.

(13) That the agreed 1963/64 restraint level for category 51, i.e. 1,280,858 dozens, shall be increased for the third year of the Arrangement by 325,000 dozens in order to take partial ac- count of export performance in non-blouse components of blouse sets exported during the second year of the Arrange- ment under category 52. The agreed restraint level for cate- gory 51 for the third year of the Arrangement shall therefore be as shown in column three of Appendix 1, i.e. 1,605,858 dozens.

(14) That the restraint level for corduroy apparel during the third year of the Arrangement shall be 7 million square yards. This represents an increase of 3 million square yards over the agreed restraint level for the second year of the Arrange-

ment.

(15) That categories 41 and 42 shall be amalgamated with a com- bined restrnt level during the third year of the Arrange- ment. The greed restraint level is shown in column three of Appendix 1.

(16) That category 45 shall be increased, and category 46 shall be correspondingly reduced, by a quantity equivalent to the quantity of short-sleeved dress shirts which shall prove to have been shipped from Hong Kong to the United States during the period 1st October 1963 to 30th September 1964 inclusive under category 46 quotas.

(17) That the export restraint in category 62 shall be confined to sweatshirts which shall be isolated in a sub-category of cate- gory 62 and restrained during the third year of the Long- term Arrangement at the level shown in column three of Ap- pendix 1. The remainder of category 62 shall be derestrained, without prejudice to the right of the United States Govern- ment to request restraint in further product sub-categories un- der the terms of the Arrangement. As indicated in paragraph 2(6) of this Memorandum, it is agreed by both Governments that knit blouses shall be classified and recorded in a separate product sub-category of this miscellaneous category.

(18) That the Hong Kong Government shall have the option of permitting "swing" transfers freely between categories 15, 16, 18, 19, 23, 24 and 25, provided that the maximum export level in any one of these categories during the third year of the Arrangement shall not exceed two million square yards. (19) The terms of this Memorandum of Understanding shall not be altered except by mutual agreement of both Governments.

TIAS 5872