03230

G.F 323

CONFIDENTIAL

- 3 -

Carryover

Anticipation

Article 5 Administration

Article 6 Measures for co-operation

(c)

Unused portions of sub-categories with specific ceilings

may be transferred to other sub-categories within the same

Category which are not covered by specific ceilings.

The portions of one of the ceilings of the two groups of

categories not taken up in the course of an annual period may

be carried over to the ceiling of the same group in the course

of the following annual period up to a limit of 10% of the

ceiling defined if not subject to transfer or to carry over

for some other purpose.

Up to a limit of 10% of each of the agreed ceilings deliveries

will be permitted by anticipation against the ceiling for the

following annual period if the liong Kong Government requests

this in writing and giving adequate notice. However the

Hong Kong Government will exert every effort to see that the

exports of cotton textiles of all categories are staged as

regularly as possible, taking into account seasonal factors,

during each of the annual periods, the amounts which have

been the subject of anticipation are deducted from the ceilings

for the following annual period.

The Hong Kong Government and the E.E.C. have agreed that the

administration of the ceilings included in the actual Agreement

should be carried out under a double control system.

The two parties have agreed to exchange all types of information

relative to the exports of cotton textiles from Hong Kong to the

E.E.C. and to corresponding imports into the E.E.C.

Each party

shall for the purposes of this Agreement apply the classification

which it normally uses and shall co-operate in facilitating

the comparison of information thus supplied.

CONFIDENTIAL

/Article 7

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