TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 45

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NOTE

Hong Kong/UK Wide Sheeting and Sheets Agreement, 1968

Hong Kong's exports to the UK of cotton textiles have

been restrained since 1966 within a separate country quota,

under an arrangement known as the Heads of Agreement, which

expires at the end of 1970. Section C of this Agreement

stipulates an annual growth factor of 1% overall and in each

of the group and category levels. Section E, 5 provides for

a further 5% growth in any year "in those sensitive categories

in which Hong Kong's exports in the previous year reach 95% or

more of the ceilings established for that year". Section H, 5

provides that the arrangements in the Agreement will not be

changed "except with the consent of both parties or as a

ult of multilateral discussions in which Hong Kong will be

fully consulted".

2. In 1968 the Board of Trade became satisfied that substan-

tially increased Hong Kong exports of wide sheeting and sheets

were causing material injury to that sector of British industry,

and at the UK's request discussions were held in Hong Kong in

September, 1968. In an Aide Memoire sent prior to the talks,

Hong Kong was informed that HMG would "find it very difficult

to contemplate any increase in imports of wide sheeting and

sheets from India and Hong Kong in the period up to the end of

1970 when the present Agreement expires".

Agreement to res-

train exports at certain reduced levels was reached, but no

agreement on growth was concluded or (on the Board of Trade's

admission) indeed discussed during the talks. Hong Kong was

/given

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