3. SHORTLY BEFORE THE SESSION BEGAN BECK TOLD MILLS THAT, IN ADDITION TO THE LIMIT ON CATEGORY 2 COTTON FABRICS AND CATEGORY 3 SYNTHETIC FABRICS (THE LIMIT OF 13,000 TONS ON CATEGORY 2 COTTON FABRICS WOULD HAVE TO BE IMPOSED ON HONG KONG BECAUSE OUR POSIT THAT WE REFUSE TO NEGOTIATE BELOW 1976 LEVELS OF TRADE MUST BE MAINTAINED), THE COMMUNITY ALSO REQUIRED SUB-LIMITS ON BOTH CATEGORIES IN RESPECT OF FINISHED FABRICS, IE. OTHER THAN GREY AND BLEACHED, WITH THESE SUB-LIMITS BASED ON THE IMPORT PATTERN OF TRADE.
THIS RE-OPENING OF THE PACKAGE CAME AS A COMPLETE SURPRISE TO THE HONG KONG TEAM WHICH, NEVERTHELESS, HAVING AGREED EARLIER WITH BECK TO HOLD THE FIRST FORMAL SESSION, DECIDED THAT IT SHOULD PROCEED AS ARRANGED. JUST AS THE SESSION WAS ABOUT TO OPEN BECK
TOLD MILLS PRIVATELY THAT HE WOULD ALSO HAVE TO REDUCE BY 1 PERCENTAGE POINT THE GROWTH RATES AGREED INFORMALLY FOR CATEGORIES 73, 74 AND 76. MILLS REACTED SHARPLY THAT THESE REDUCTIONS IN GROWTH PLUS THE LAST MINUTE FOREWARNING ON THE SUB-LIMITS IN FABRICS BROUGHT HIM TO THE CONCLUSION THAT THE FORMAL SESSION SHOULD NOT BE HELD. BECK THEN SAID THAT HE WOULD ON HIS OWN RESPONSIBILITY RESTORE THE CUTS IN GROWTH BUT HE COULD DO NOTHING ON THE SUB- LIMITS. HE HAD RECEIVED FIRM INSTRUCTIONS TO DEMAND THESE.
4. THE FORMAL SESSION THEN BEGAN. BECK WORKED BACKWARDS FROM GROUP IV TO GROUP 1. HONG KONG ACCEPTED THE LIMITS PROPOSED BY BECK ON ALL CATEGORIES IN GROUPS II TO IV EXCEPT CATEGORY 13 (KNITTED UNDERWEAR ETC) AND QUERIED THE PROPOSED LIMIT ON CATEGORY
72.
5.
IN GROUP 1, WHEN BECK CAME TO CATEGORY 2 AND PRESENTED THE SUB-LIMIT (AT A LEVEL TO BE NEGOTIATED LATER), MILLS ASKED HIM TO REPEAT IT AND THEN SAID MR CHAIRMAN, THIS IS A COMPLETELY NEW DEVELOPMENT, A SURPRISE DEVELOPMENT, AND A VERY GREAT SHOCK. HOWEVER, I DID AGREE IN THE BEGINNING THAT YOU SHOULD PRESENT YOUR PROPOSALS TO US. SO PLEASE CONTINUE. BECK THEN CONTINUED THROUGH GROUP 1. WHEN HE HAD FINISHED, MILLS EXPRESSED HIS SHOCK AND ANGER AT 'THIS ASTONISHING LAST-MINUTE CHANCE IN CATEGORIES 2AND 3'. HE ENDED BY SAYING IT IS TOTALLY UNACCEPTABLE AND I THINK WE SHOULD SUSPEND THIS SESSION. THANK YOU." AT THIS POINT MILLS AND
HIS TEAM LEFT THE ROOM.
6.
IN CASE IT. MAY BE SUGGESTED THAT WE DID HAVE EARLIER WARNING CF THIS, I MUST EXPLAIN THAT WE ACTUALLY HAD PRIOR CONFIRMATION THAT NO SUB-LIMITS WOULD BE DEMANDED. IN A TABLE OF CATEGORIES HANDED OVER BY THE COMMISSION ON 19 OCTOBER, CATEGORIES 2 AND 3, COTTON AND DISCONTINUCUS SYNTHETIC FIBRES, INCLUDED PROVISION FOR POSSINE SUB-LIMIT ON FABRICS OTHER THAN GREY AND BLEACHED BUT
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