TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 87

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G.F. 323

CONFIDENTIAL

15.

Hr. Nehmer said the U.S. Government's inter-

pretation of Article 1 of the C.T.A. was somewhat

different.

Although the wording was to the effect

that the C.T.A. was not to be taken as a precedent for

action in other fields, the U.S. Government did not

believe that this implied a commitment by participating

countries not to proceed with action in other fields.

16.

Mr. Jordan did not think the fact that the

inport/consumption ratio for man made and wool fibre

textiles was now similar to the ratio for cotton when

the Long Term Arrangement was negotiated, was of

particular significance. What was significant was

the fact that the ratio for the first eight months of

1969 was 4.6% and since this related to imports from

all sources, the contribution to the penetration by

low cost suppliers must be less than 4.6%.

It was

therefore difficult for Hong Kong, as only one of these

so called low cost suppliers, to accept that its exports

were causing injury.

17.

Mr. Helmer said that for the year ending

July 1969 total inports of .n.f. textiles were 1,700

million square yards: of this total 560 million square

yards came from Japan, 200 million square yards came

from Taiwan, 185 million square yards came from South

Korea, and 124 million square yards came from Hong Kong.

/Supplies

CONFIDENTIAL