the relevant quotas from 85% of the 1978 level in 1979 to
5% in 1982) were not acceptable. As we were isolated within the Community we would reconsider but for the time being were opposed. The UK did agree to a temporary extension of existing arrangements.
B
1
Consultations
Hong Kong agreed the definitions of occupational clothing, track suits and trousers (with a minor suggested wording amendment). They also agreed to the blousons figures but requested a definition of these garments. A request for the UK to justify its quota utilisation figure for jerseys (Cat 5) in accordance with Article 7 of the Agreement was made. Beck (Cmssn) informed HK of our gesture concerning
'working' jeans and Hong Kong took note.
2
Any
After much verbal fencing it was agreed between the Community and Hong Kong that the present temporary arrange- ments for the origin of handkerchiefs and household linen would continue until a solution could be arrived at. Niezery (Cmssn) linked the problem of origin frauds to this matter (without making specific reference). Mills (HK) commented that Hong Kong would fulfil its obligations under the Agreement by full and vigorous Customs co-operation. trader convicted in a Hong Kong court could expect heavy fines, imprisonment and the removal of the ability to export.
3 Hong Kong categorically denied rumours that had been circulating in the press to the effect that she was consi-- dering not signing the Agreement. Community delegates were invited to send representatives from their countries to a seminar on the 'nuts and bolts' of the textile industry and trade to be held in Hong Kong during March 1979 (details are to be communicated later).
Dwebst
A D WEBSTER
CTla
Rm 629 Ash Hse
212 0127
11 December 1978
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Private notes are available after approval.