BY AIRMAIL
CR/KIC 214/1/1
100
5-226363
15 August
3
(Joar ár. Groot)
I refer to the Hong Kong Government's Note Verbale of 8 August 1973 extending unilaterally the arrangements for 1973 governing Hong Kong exports of cotton and man-made fibre shirts to Denmark.
Basically,
We have taken this decision having regard to the indeterminate stage reached in the formulation of a new multilateral textile arrangement; and the need to reduce the uncertainty arising therefrom in order, as far as possible, that the operations of buyers, sellers and manufacturers should not be disrupted. this unilateral met involves the replacement of the 1973 oalendar year arrangements with an arrangment in like terus for the 18-month period 1 January 1973 to 30 June 1974, with a proportionate increase in the limits to take account of the longer period. Accordingly, our exports of tailored shirts of cotton and man-made fibre to Denmark in the extended period will be limited to 3,300,000 рса. de will also continue to try to maintain the pattem of trade and keep exports of tailored shirts cut and sewn from knitted fabrics chargeable against the above restraint limit at not less than 330,000 pcs.
I trust that this action will be acceptable to your Government. we are, as over, at your disposal for consultations at any mutually convenient time and place.
(Yours sincerely)
(W. Dorward)
Deputy Director of Commerce and Industry
(Commercial Relations)
Mr. F. Groot,
Deputy Under-Secretary of
State for Foreign Affairs,
Det Gule Pale,
Amaliegade 18,
1256 København K..
Dengark.
NOO: oo G.W. Marshall, Esq., M.B.E., B.E.M.,
B.E. Copenhagen .
DES
AL (with further copy for FCC)
AB
CYPHER CAT A
GRPS 800
FM F C O 201450Z
RESTRICTED
RESTRICTED
file
(MT)
(99)
NEUTRAL
[HKKG/6
TO ROUTINE UKREP BRUSSELS TELNO 1953 OF 20 AUGUST 1973
POLYESTER/COTTON TEXTILES FROM CERTAIN LOW-COST SOURCES
PLEASE CONVEY THE FOLLOWING TO THE COMMISSION, FOR ITS OWN
INFORMATION AND THAT OF THE MEMBER STATES
QUOTE IN ACCORDANCE WITH ARTICLE 1 OF THE COUNCIL DECISION OF 19 DECEMBER 1972 (72/455/CEE) CONCERNING IMPORT REGULATIONS,
HMG HAS TO ADVISE YOU OF THE FOLLOWING PROPOSED CHANGE IN THE
REGULATIONS FOR THE IMPORT OF WOVEN POLYESTER/COTTON TEXTILE
FABRICS AND MADE-UP GOODS FROM CERTAIN COUNTRIES WHOSE EXPORTS
OF COTTON TEXTILES ARE AT PRESENT RESTRAINED BUT WHOSE EXPORTS
OF POLYESTER/COTTON TEXTILES ARE SUBJECT ONLY TO IMPORT LICENSING
WITHOUT QUANTITATIVE RESTRICTION. THIS GROUP OF COUNTRIES
CONSISTS OF ALL COUNTRIES IN THE WORLD EXCEPT: EEC, EFTA, MEDITERRANEAN ASSOCIATED STATES OF THE EEC, USA, CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, HONGKONG, SOUTH KOREA, TAIWAN AND EASTERN AREA (STATE TRADING) COUNTRIES. THE CHANGE IS AS FOLLOWS: WHEN IN ANY
PERIOD OF SIX MONTHS IMPORT LICENCES GRANTED FOR SUCH PRODUCTS
FROM ANY SINGLE COUNTRY IN THE GROUP AMOUNT TO TWO MILLION SQUARE YARDS (ABOUT 300 TONNES), ACTION WILL BE TAKEN TO RESTRAIN SUCH
EXPORTS FROM SUCH COUNTRY OR COUNTRIES AT A LEVEL TO BE
DETERMINED. SUCH RESTRAINTS WILL CONTINUE IN OPERATION UNTIL THE
END OF 1976. THE ADMINISTRATION OF THE RESTRAINTS WILL BE BY MEANS
OF IMPORT QUOTAS TO BE DETERMINED BY HMG, UNLESS THE EXPORTING COUNTRY IN QUESTION INSTITUTES VOLUNTARY EXPORT RESTRAINTS AT
LEVELS SATISFACTORY TO HMG, IN MAKING THIS CHANGE IN IMPORT
REGULATIONS, AND IN THE APPLICATION OF THE NEW RULES TO
PARTICULAR CASES, HMG WILL ACT IN ACCORDANCE WITH PROVISIONS OF THE
LTA AND WILL TAKE INTO ACCOUNT THE PRINCIPLES LIKELY TO BE EMBODIED
IN ANY NEW GATT MULTIFIBRE TEXTILE AGREEMENT,
THE REASONS FOR THIS CHANGE ARE AS FOLLOWS: IN OCTOBER 1972 THE UK
NEGOTIATED AGREEMENTS WITH THE AUTHORITIES OF HONG KONG AND SOUTH
RESTRICTED
/ KOREA INVOLVING
DBOMDTAMU'N
KOREA INVOLVING EXPORT RESTRAINTS ON THE PRODUCTS IN QUESTION TO LAST UNTIL THE END OF 1976, AND TOOK PARALLEL ACTION IN RELATIO TO IMPORTS FROM TAIWAN, IMPORTS FROM STATE TRADING COUNTRIES AND FROM JAPAN WERE ALREADY LIMITED BY AGREEMENT. THIS ACTION WAS MADE NECESSARY BY THE HIGH AND RAPIDLY GROWING DEGREE OF IMPORT PENETRATION OF THE UK MARKET BY IMPORTS FROM HONG KONG, SOUTH KOREA AND TAIWAN, AS EVIDENCED BY THE FOLLOWING FIGURES:
1973
1971
1972
FIRST HALF OF 1973
A UK PRODUCTION
45.0
60.0
66.0
39.6
B IMPORTS
83.2
137.7
-232.9
140.5
C OF WHICH IMPORTS
FROM HK, SK OT
36.65
73.93
138.10
65.6
D EXPORTS
2.0
4.9
7.4
5.4
E APPARENT CONSUMPTION
(A + B -D)
126.2
192.8
290.6
174.7-
F IMPORT PENETRATION
(B AS OF E)
65.93%
71.42%
79.83%
80.42%
G IMPORT PENETRATION
DY HK, SK @ T
29.043
36.776 44.77%
37.55%
(C AS
OF E)
MILLION SQUARE YARDS
IN THESE CIRCUMSTANCES THE UK INDUSTRY WAS UNWILLING TO INVEST IN THE PLANT NECESSARY TO RAISE ITS PRODUCTION AND INCREASE ITS EFFICIENCY TO LEVELS THAT WOULD MAKE IT INTERNATIONALLY COMPETITIVE. CONSEQUENTLY, FUTURE EMPLOYMENT PROSPECTS WERE GRAVELY THREATENED. THE RESTRAINTS VERE INTRODUCED FOR A PERIOD OF SLIGHTLY OVER FOUR YEARS, TO GIVE DOMESTIC INDUSTRY TIME TO ACHIEVE THE GOAL OF
VIABILITY WITHOUT QUOTA PROTECTION: ITS PROGRESS IN THIS DIRECTION IS BEING MONITORED BY HMG,
IN ORDER TO ENSURE THAT THE CENTRAL PURPOSE OF THE RESTRAINTS IS NOT
2
RESTRICTED
/ UNDERMINED
No comments yet.
Private notes are available after approval.