TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 23

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TO IMEDIATE UKDEL EEC TELEGRAM LO 677 OF 23 NOVEMBER. 1972

YOUR TELEGRAM .0 2099: COTTON TEXTILES,

M.I.P.T.

FOLLOWING IS TEXT OF STATEMENT:

THE EUROPEAN COMMISSION HAVE SOUGHT A PANDATE FROM THE COUNCIL TO RE-NEGOTIATE THEIR AGREEMENTS UNDER THE CATT LONG-TERM ARRANGEMENT ON COTTON TEXTILES WITH JAPAN, HONG KONG, INDIA, PAKISTAN, SOUTH KOREA AND EGYPT TO TAKE ACCOUNT OF THE ENLARGEMENT OF THE CO-MUNITY. THE AGREEMENTS PROVIDE FOR THESE COUNTRIES TO RESTRICT THEIR EXPORTS OF COTTON TEXTILES TO MEMBER COUNTRIES OF THE COMMUNITY, THEY APPLY UNTIL 30 SEPTEMBER 1973 EXCEPT FOR HONG KONG AND KOREA WHERE THE AGREEMENT LASTS UNTIL 31 DECEBER 1973. A CO PARABLE ARRANGEMENT WOULD BE SOUGHT AS REGARDS EXPORTS OF COTTON TEXTILES FROM TAIWAN.

THE NEW ARRANGEMENTS WOULD EXTEND AS FAR AS PRACTICABLE TO TRADE IN COTTON TEXTILES BETWEEN THE SEVEN COUNTRIES AND THE UK, DENMARK AND IRELAND THE PATTERN OF RESTRAINTS IN THE COMMUNITY'S EXISTING AGREEMENTS. THE PRACTICAL EFFECT WOULD BE TO LIMIT EXPORTS TO THE THREE ACCEDING COUNTRIES AT APPROXIMATELY THE SAME LEVELS (WITH APPROPRIATE ALLOWANCE FOR GROWTH) AS UNDER THE BILATERAL ARRANGEMENT CURRENTLY EXISTING BETWEEN THE COUNTRIES CONCERNED. THE

CATEGORISATION OF THE QUOTAS AND ARRANGEMENTS FOR FLEXIBILITY BETWEEN GROUPS AND CATEGORIES WOULD AS FAR AS POSSILLE BE RE-ARRANGED TO

RING THEM INTO CONFORMITY WITH THOSE IN THE COM.UNITY'S AGREEMENTS, AGAIN WITHOUT SUBSTANTIALLY CHANGING THEIR EXISTING EFFECT,

THE PRODUCTS TO BE COVERED WOULD IN LARGE MEASURE DE THE SAME AS UNDER THE PRESELT BILATERAL ARRANCEMENTS, INCLUDING IN THE CASE OF THE UK COTTON YARN. THE NEGOTIATIONS WOULD TAKE PLACE AS SOON AS

POSSIBLE AND IN ANY CASE BEFORE THE END OF THIS YEAR.

THE UK WILL PETAIN EXISTING RESTRAINT ARRANGEMENTS ON COTTON TEXTILES WITH COUNTRIES OTHER THAN THE SEVEN COVERED BY THE COMMUNITY'S

AGREEMENTS UNDER THE LONG TERM ARRANGEMENT.

RESTRICTED

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