TNAG-0387-FCO40-433-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 31

CONIDENTAL

17m sq yds. These figures may be compared with a basic quota for 1973 of 76m sq yds for Hong Kong, and amounts of 6m so yds and 7.2m sq yds for South Korea and Taiwan respectively. Actual imports from Thailand in the first half of this year are estimated at just over 1m sq yds, with little or nothing from Macao and Colombia. The bulk of the material for which licence applications have been received is schedule for delivery in the period September to December.

Licensing procedures

4.

Licences, with six months validity, are now being freely issued against all properly completed applications submitted together with evidence of orders having been placed. On 5 July, however, we issued a warning to the trade to the effect that licences will no longer necessarily be freely available; that further applications may meet with some delay; that some application may be refused in whole or in part; and that the validity of licences already issued may not be extended if the goods are not imported within 6 months. There are indications that this action has led to a number of further applications from firms anxious to secure a position before any limitations are imposed.

The case for further action

i..

5.

The

Prospective imports up to January. 1974 arising from orders which have actually been placed in Thailand already amount to more than either of the annual basic quotas for South Korea or Taiwan. Output of polyester/cotton fabric in Thailand last year was reported to be some 163m so yds (UK: 66m sq yds) so there is no reason to doubt her capacity to produce the amounts ordered by British importers. extent to which this prospective rapid increase in Thai exports stems directly from the restraints on other Far Eastern suppliers is shown by the fact that most of the material has been ordered from subsidiaries of Hong Kong companies operating in Thailand. There is now a need to bring this trade under control if the Government's policy towards UK producers of polyester/cottons is not to be undermined and if equity is to be maintained between our treatment of goods

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