RECEIVED IN REGISTRY No.51 - 4 JUN 1969
HKL6/343/1.
EXTRACT.
Reference......
RESTRICTED.
To Director of Commerce and Industry, Hong Kong..
From Counsellor (Hong Kong Affairs), Geneva.
Memorandum No. 77.
File No, GV/4/34
RESTRICTED
Date 13 May 1969
Annex 1
IV.A
Non-tariff Barriers
Discussion on Hong Kong Notifications
in Sections W. V and VI
Quantitative Restrictions
AUSTRALIA
tions
This concerned QRS imposed under Article XIX on knitted coats, jumpers, cardigans and the like. In elaborating on this notification I said that, on the advice of the Special Advisory Authority, the Australian Government had imposed QRs on these products under Article XIX. This action was intended to be temporary pending an investigation by the Tariff Board.
Tariff Board investigations, however, tended to take a very long time and, in the meantime, the quantitative restrictions remained in being. Hong Kong, as principle supplier of these items, was particularly concerned that the Tariff Board investigation should proceed as rapidly as pessible so that the situation could be regularised and the contracting parties involved could pursue their rights under the General Agreement in respect of whatever permanent action was finally taken. Hall (Australia) replied that the procedures I had outlined 'were correct. The Special Advisory Authority had recommended the imposition of QRS and this action had been taken under Article XIX and notified as such. considered that an investigation by the Tariff Board did not
He usually take a great deal of time, perhaps 18 months to two years and in exceptional cases three years (from the noises off this did not appear to strike the Committee as being very rapid action). Hall added that the quotas applied were not unduly restrictive and were not discriminatory. allocated to importers on the basis of 100% of their imports
They were in the year immediately preceding the action. He would wish to point out that in that year imports of these items were double those of the previous year and 5 times the imports in the year preceding that. It was this rapid build-up which had led to the emergency action being taken.
2. Malmgren (U.S.), in the course of comments on separate U.S. notifications against Australia, made the general statement that his authorities were specially interested in restrictions on textiles maintained by other contracting parties as in a number of cases these appeared to be diverting exports to the U.S. market. Hall replied that, in the case. of Australia,' the build-up of imports in these items showed that it was a case of exports being diverted from other restricted markets into the Australian market.