TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 37

CONFDENTIAL

COTTON TEXTILES

(i)

(ii)

(iii)

(iv)

to continue to rely in 1972 on the Crosland safeguard formula;

to abandon the Crosland formula and use during 1972 our rights under the Long Term Cotton Arrangement;

to maintain our present quotas in 1972;

on textile imports to try to anticipate the pattern of the EEC limits/ and to negotiate restraints in 1972;

(v) to withdraw from the LTA and invoke Article 19 of

the GATT.

NON-COTTON TEXTILES

(vi) to act unilaterally by invoking Article 19 of the

GATT;

(vii)

(viii)

to seek agreement to extend the Cotton LTA to man- made fibres;

to try, with the EEC, to negotiate restraint

arrangements with the Asian countries concerned.

COTTON AND NON-COTTON TEXTILES

(ix)

A "common problem" approach with the EEC involving:-

(a) achieving restraint arrangements during 1972 with selected low-cost suppliers in preparation for alignment to the EEC's Article IV Agreements;

making a joint public approach with the EEC to re-negotiate their Article IV Agreements and to extend them to non-cottons, or

and (b)

pressing, in concert with the EEC, for a GATT study to be set up very quickly to consider the whole question of international trade in textiles.

9. If we have to accept a change in our import policy, we should wish to do so with the least effect on our relations with

overseas governments. This would indicate that options (ii), (iii) and (v)Vare unlikely runners. Option (i) is really a statement of the status quo. Options (vi) to (viii) largely

CONFIDENTIAL

/deal