1
RESTRICTED
THE QUOTA, WHICH IS FOR AUGUST DECEMBER, REPRESENTS EXAC- TLY 5/12 OF IMPORTS OF BOTH TYPES OF PRODUCT IN 1976. PO- RTS FOR THE WHOLE OF 1975 WERE 1,525,000 PIECES AND IN JAN- UARY - JUNE 1977 WERE 1,662,000 PIECES. WE ORIGINALLY ASK- ED FOR A RESTRAINT ON THESE PRODUCTS DURING THE DISCUSSIONS
ABOUT SHIRTS AND BLOUSES EARLIER IN THE YEAR. THE INDIANS
ARE UNHAPPY ABOUT THIS LATEST MEASURE AND WILL NO DOUBT
REFER IT TO THE TEXTILES SURVEILLANCE BODY (AS THEY HAVE ALREADY DONE IN THE CASE OF SHIRTS AND BLOUSES, COTTON YARN AND KNITTED SHIRTS). HOWEVER, WHEN MR DHARIA, THE MINISTER OF COMMERCE, SAW THE SECRETARY OF STATE FOR TRADE RECENTLY,
HIS PROTESTS WERE VERY MILD. MR DELL SUGGESTED THAT FURTHER
DISCUSSION ABOUT THESE PRODUCTS SHOULD TAKE PLACE IN THE
CONTEXT OF THE FORTHCOMING BILATERAL NEGOTIATIONS. THE NEW
QUOTA WILL BE IMPORT-ADMINISTERED.
3. IN ADDITION THE COMMISSION HAVE MADE A DIPLOMATIC APPROACH TO THE
ISRAELI AUTHORITIES TO ASK THEM TO RESTRAIN VOLUNTARILY THEIR EXPO-
RTS OF BRASSIERES TO THE UK AND TO FRANCE. UK IMPORTS IN 1976 WERE 1,647,996 PIECES AND IN JANUARY JULY 1977 WERE 1,319,998 PIECES (ACCOUNTING FOR ONE QUARTER OF OUR TOTAL IMPORTS OF THIS PRODUCT). ISRAEL HAS REACTED BADLY TO THIS REQUEST AND TO THE APPROACH ON KNITTED SHIRTS (REFERRED TO IN GUIDANCE TELNO 169). IMPORTS OF KNIT- TED SHIRTS FROM ISRAEL IN JANUARY- JULY 1977 WERE 1,654,476 PIECES COMPARED WITH 981,672 IN THE WHOLE OF 1976. THE ISRAELIS HAVE NOT
YET RESPONDED FORMALLY TO THE COMMISSION APPROACH BUT SENIOR EMBASSY
OFFICIALS (MR LAVEE AND MR BIRAN) HAVE CALLED ON THE DEPARTMENT OF
TRADE TO ASK THEM TO WITHDRAW THE REQUESTS. WE ARE STILL AWAITING A
FORMAL REPORT FROM THE COMMISSION ON THE RESULTS OF THEIR APPROACHES
AND WILL THEN HAVE TO CONSIDER WHETHER TO SEEK THE INTRODUCTION
OF QUOTAS. APPROACHES HAVE ALSO BEEN MADE TO THE PHILIPPINES ABOUT THEIR EXPORTS OF BRASSIERES TO THE UK AND FRANCE, AND FRANCE WAS ALSO INCLUDED IN THE KNITTED SHIRTS EXERCISE.
4. THE PACKAGE ALSO INCLUDES ADDITIONAL QUOTAS FOR OTHER MEMBER STATES, ALSO FOR THE PERIOD AUGUST DECEMBER 1977, AS FOLLOWS ;-
COTTON CLOTH (55.09)
EGYPT
2 RESTRICTED
ITALY
TROU
TROUSERS,
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