TNAG-0391-FCO40-437-Restriction-on-cotton-textile-exports-from-Hong-Kong-to-the--1973 — Page 43

poor, but ea argument of sorts could be mounted. The chances of success depend as much on the determination with unich ne

our request as on the strength of the case. The covert restrainis of low-cost yarn which we believe are mintained by France, Italy and Belgium might well prompt them to discreet nequiescence to a

request for some further element of protection for our ovu spinners. But we must expect the most rigorous inouisition from the West Germany. This would be the sharper because our professed desire to move the Community's commercial policion towards a more liberal basis, would sort oddly with reluctance to fell in with the solitary area of Community textile policy in which a commentaire and liberal posture has already been asserted.

GATT considerations

The current negotiations in Geneva for a new multilateral, multi- fibre textile agreement are due to be completed at the end of the year, and are therefore at a critical stage. We have mage some progress in persuading our partners to adopt a line that would commit the Community, inter alia, to phu sáng out, over a maximun period of three years, existing restrictions that could not be justified under the new crit ria for mutet disruption. Að vald be consistent with this line, and provide a strong argument for like treatment of other member states' restrictions that re

essentially unjustifiable, if we were to demonstrete our peretical belief in this procedure by proposing a three-year progra se for phasing out our cotton yarn cuotas.

Troposed phasing out

The overall 1973 enota level for imports from restricted roureen cannot be precisely quantified, since all but the vrincipt supplying countries have the theoretical right to export to the Uh the whole of their uncategorised textile quotum in the Jon of cotton yarn. In practice only a small proportion of the w plen country quotas are used for yara imports, the halimice (when ured) being taken up by cloth and made-up goods. Only twelve no tricted countries have exported cotton yern to the UK in quanti tien totalling wore than 0.5 tonnes during the three your period (1970-1972)*.

wesbite

All other exporting countries accounted for a total of 0. tonnes of UK yarn imports over the three year period.

f.