TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 100

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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Because of the lack of separate import statistics for knit blouses and because it is often difficult to distinguish a knit shirt and a knit blouse, we believe that knit blouses should continue to be placed in the same category as knit shirts, and W

are prepared to concede the continuation of restraint on knit shirts etc and woven blouses on this basis. The limit you have proposed for 1978 represents cutbacks of?18 on 1976 imports,10.78 on 1976 exports and 17-18 on the 1977 restraint

limit.

·

No justification has been given. We cannot accept . your proposalin a limib, we can agree to contline the restraint woven blouses..

73.

Woven shirts We are prepared to concede the continuation of restraint on this item. The proposed 1978 limit represents cutbacks of 15 8 on 1976 imports, 28 on 1976 exports and 25.5% on the 1977 restraint limit. No justification has been given. We cannot accept your proposalón a

limit

74.

i he

You will notice that I have not mentioned the growth rates you have proposed for these items. Ordinarily, we would be prepared to consider a positive growth rate of less than 6% as a "reasonable departure" from the MFA, provided that the limits we are discussing for 1978 are not less than the applicable 1977 limits in the current agreement.

However, in the present situation, the 1978 limits you have proposed are all cases lower than the respective 1977 limits and the cutbacks in some. cases are so savage that even if we agreed on an annual growth of 6% from 1979 onwards for all of them, it would still take

far longer than the life of the proposed new agreement for us

to get back to the 1977 restraint limits for some of them. So

unless we can agree on 1978 restraint limits which are acceptable

to Hong Kong, I see little point in talking about growth rates. Or, let me put it another way. Hong Kong's position on growth

rates will depend very much on the starting levels for 1978.

.75.

Your proposals regarding items other than the 8 which I have already dealt with have placed me in a very difficult position. On the one hand, you have not provided any justificatio at all, either for the continuation of restraint on those items which are currently subject to restraint or for the introduction

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