TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 168

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DEPARTMENT OF TRADE AND INDUSTRY

CT Division - Room 741

Millbank Tower, Millbank,London

SW1

5 December 1970

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mix welch

EXPORTS CF HONG KONG COTTON TEXTILES TO THE UNITED KINGDOM IN 1971

At our meeting on 26 November, we agreed that the extension of the 1966-1970 Heads of Agreement on Cotton Textiles could be effected by an informal exchange of letters between us.

I therefore propose that

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The Heads of Agreement, in the form in which it is now being operated (given that some of the provisions are no longer relevant), should be extended for one further year, 1971.

That the 1971 quota levels - including those for sheeting and sheets - should be 1 fer cent higher than those for the year 1970.

That the 95 per cent use/5 per cent growth formula set out in paragraph E5 of the Heads of Agreement should apply to all the sensitive categories.

I should be grateful if you would confirm that these arrange- ments are acceptable to you.

I for my part confirm that, as we Hong Kong may anticipate up to 8 in 1970.

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said at the meeting,

per cent of the 1971 quotas

You also asked whether Hong Kong could take it that, for practical purposes, Customs would continue to regard only those goods "wholly or mainly of cotton" as being subject to quota, and would not operate on the definition #50 per cent or more by weight of cotton". We have consulted Customs about this, and they confirm that on two fibre blends, their practice is unaltered; that is, that no difficulty will arise on the type of product which I think was of most concern to you, 50/50 blends. however, we are planning to take steps during the course of 1971 to consolidate the Open General Import Licence and to bring the entries in it into line with tariff nomenclature. This may affect the treatment of a few textiles of three or more different fibres; but we shall certainly bear your interest in mind in settling what is done on the se.

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J Cater Esq

Commerce and Industry Department

Fire Brigade Building

rong Kong

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