TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 34

C. & I. 200

2700206

50x100-7/68-B64557

TELEGRAPHIC ADDRESS:-

**CANDIHONG" HONG KONG

OUR REF.:

CR/EIC 294/5/11/511

YOUR REF.:

(Dr. Wilfred has

melseen) Dr.haird HK

COMMERCE & INDUSTRY DEPARTMENT,

FIRE BRIGADE BUILDING,,

HONG KONG.

13

30 June, 196/70

Growth: Wide-sheeting and sheets

You will recall that during your short visit to Hong Kong in April, we touched on the question of growth under the Heads of Agreement, governing Hong Kong's exports of cotton textiles to the U.K., insofar as it relates to wide-sheeting and sheets. In the course of those talks, I mentioned that this matter has become a "non-problem" because of our poor performance in these items during 1969, and thus qualified for only 1% growth for 1970. However, the more important consideration from our point of view is that the provisions in the Heads of Agreement remain unaltered, unless both parties there to agree to a change.

I also explained why we cannot be considered to have "agreed" to a change in the growth rates from those provided under the Heads of Agreement (1% under Head 'C' plus a further 5% under paragraph 5 of Head 'E') to 3%.

2.

While you did not commit yourself to any particular course of action during our talks, you did say that you would look into the matter afresh on your return to London, and would then write to me or David Sellers about the matter.

3.

Although I appreciate that there has been a lot on your plate over the last two months, I wonder whether you can now give me some idea how this review is progressing?

4.

I am copying this letter to Michael Wilford, who was also informed of our concern over this matter when he visited the Commerce and Industry Department on 11 April 1970, and to David Sellers.

+

JKK 0/548/

(E.P. Ho)

P.W. Carey, Esq.,

Ministry of Technology,

1 Victoria Street,

London S.W.1..

England.

c.c. K.M. Wilford, Esq., C.M.G.

D.M. Sellers, Esq.

14/0