C
B
1.
Group IV for 1972 Group V for 1972
Total for new en- larged Group IV
90.229 m sq yds
2.509 m sq yds
92.738 m sq yds
However, because of the sensitivity of the UK glove industry, we should have to introduce a new ceiling for gloves within thia Group. We suggest 2.5 m sq yds (equivalent to the whole of the old Group V ceiling).
The number of Hong Kong sensitive categories would then be reduced to a total of 17 for cloth and made-ups, (of which made-ups categories would amount to 8, including the new glove category) If necessary, we may offer to reduce Indian categorisation from 18 to 16 by abolishing the coarse/non coarse subdivision in two of her greycloth quotas: this is one of the few concessions which might be of any practical benefit to India if she pressed for parity of treatment with Hong Kong. The global quota countries already have 17 sensitive categories (ie the same number as we are proposing for Hong Kong) and we are not thinking of revising their categorisation; given the diversity of their interests, it would not in any case be possible to make any particular con- cession which would suit all of them.
An offer on these lines meets part of the Hong Kong request at A 1 and should dispose of some of their objections in A 2.
Compensation for hardship cases
Hong Kong asked for uncategorised yardage to accommodate
..
i orders bocked by non quota holders and ii orders booked by quota holders in excess of
quota rights
and hinted at a figure of some 25 m to 30 m sq yds.
It might be difficult presentationally to refuse over-licensing to Hong Kong completely if we are prepared to allow a limited measure of over-licensing to others. But we could suggest to the Hong Kongers that if they can satisfy us that quotas for a particular category will be fully taken up by orders covered by ILC's dated before 8 December 1971, we would allow over- licensing for any surplus orders similarly covered.
This corresponds to the concession we shall be making to global quota countries, where we have said that, insofar as firm orders covered by irrevocable letters of credit opened before 8 December 1971 cannot be accommodated with global quota allocations or the relevant country quota, details should be submitted to Import Licensing Branch for special consideration.
The Hong Kong side may well say that they feel bound to allocate 1972 export entitlement of the basis of past
No comments yet.
Private notes are available after approval.