TNAG-0246-FCO40-282-Imports-of-textiles-from-Hong-Kong-to-UK-1970 — Page 56

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In an Aid Remocre sent prior to the talks,

was in formed that

HMG world "find it very difficult to contemplate HM.h. Informed Hong Kong

any increase in imports of wide starting anot sheet's from India and Hong Kong in the person up to the end of 1970 when the present- Agreement expires.

Hong Kong/UK Wide Sheeting and Sheets Agreement 1968

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

Within

restrained since 1966 under a separate country quota, under an

arrangement known as the Heads of Agreement, which expires at

m

Take

slap] A

the end of 1970. Under Head of this document it is stated

that cotton textile exports to Britain shall be restrained under

another

separate country quota to be administered by export licensing

π of this atreviment stipulatio i in Hong Kong, Head say 1% annual growth

&

One

Head E5 adds a further

5% for categories in which exports reached 95% of more of the --

another prohibits ceiling in the previous year; Head # 5 says no change except with

5/says

the consent of both parties.

2. In 1968 the Board of Trade became satisfied that substantially

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, Agreement to restrain exports at certain reduced

(at the BOT's admission) levels was reached, but no agreement on growth was concluded or

indeed discussed during the talks. Hong Kong was given no reason

to assume that the Heads of Agreement provision on growth would

not continue to apply.

13.

A

The Board of Trade representative, on leaving Hong Kong, left

a message with a member of this Office who had also attended the

talks, offering an annual growth rate of 3%. Hong Kong, however,

consider that the 6% provision in the Heads of Agreement should

apply in this case.

had

G. It has been argued that because Hong Kong telegraphed accep- tance to New Delhi (where the Board of Trade representative/then 9012

belated" offer " of a

人

was) they also accepted the 3% growth rate. Hong Kong deny this.

They argue that the package was that agreed in discussions with

the Board of Trade representative, which they only accepted

because it was a considerable cutback on their previous level of

/ trade