ENG-1967 — Page 92

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INDUSTRY AND TRADE

the first year of which ended on September 30, 1967. Exports of certain items of cotton apparel, which were also restrained during the year ending on that date, were the subject of a new agreement signed in August for the year commencing October 1. The previ- ously restrained knitted shirts category was liberalized and the remaining four categories-woven shirts, blouses, nightwear and slacks were restrained at the same limits as for 1966–7.

Following discussions in Ottawa with the Canadian authorities, Hong Kong made a unilateral undertaking to restrain exports of certain garments made from polyester or polyester/cotton blends in the year commencing October 1. The garments in question were shirts, blouses and trousers and the limits were set at 75,000, 40,000 and 55,000 dozens respectively.

An export restraint agreement with the Federal Republic of Germany covering a range of cotton woven textiles products, in- cluding nightwear already under limitation, was signed in January. The agreement runs from November 1, 1966 to December 31, 1969, the aggregate limit for the first restraint period of 14 months being 77 million square yards; the second and third restraint periods cover the calendar years 1968 and 1969 respectively. The flexibility provisions include an annual growth rate, swing, and a measure of anticipation and carryover.

In May, agreement was reached on the extension of the restraint on the export of Hong Kong cotton woven nightwear to Norway while, at the same time, the Norwegian government agreed to the liberalization of cotton woven shirts. The new agreement in respect of nightwear runs for three 12-month periods from October 1, 1967 to September 30, 1970, the respective limits being 24,000 dozens, 25,000 dozens and 26,000 dozens.

Also in May, the Benelux Governments requested consultations with a view to the conclusion of a restraint agreement on the export of six categories of cotton woven textile products, including shirts already under restraint, from Hong Kong. Negotiations took place in July and the resulting agreement was embodied in an undertaking by the Hong Kong Government to exercise restraint during the consecutive periods July 18 - September 30, 1967 and October 1, 1967 - September 30, 1968. The aggregate limit for the latter