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MEMORANDUM OF UNDERSTANDING
Following negotiations between the Hong Kong and United States Governments to determine the arrangements under which the Hong Kong Government will continue to exercise restraint over ex- ports of the categories of cotton textiles listed and described in col- umns one and two of Appendix 1 to this Memorandum, to the United States of America during the third year of the International Long- term Cotton Textiles Arrangement [1] (hereinafter called the Arrange- ment) commencing 1st October 1964, the Hong Kong Government has set out in this Memorandum its understanding of the restraint levels which the Hong Kong and United States Governments have agreed will apply to the products concerned during the third year of the Arrangement. This Memorandum also clarifies a number of addi- tional points of agreement arrived at between the two Governments. It is agreed by the Hong Kong and the United States Governments:
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(1) That the restraint levels shown in column three of Appendix 1 shall apply during the third year of the Arrangement, i.e. from 1st October 1964 to 30th September 1965. This being so, these levels will be used in computation of the minimum restraint levels which may be requested by the United States Government, under paragraph 3 of Annex B of the Arrange- ment [] in relation to exports from Hong Kong to the United States during the fourth year of the Arrangement, i.e. from 1st October 1965 to 30th September 1966, should such restraints be continued.
(2) That the restraint levels shown in column three of Appendix 1 are deemed for all purposes to have been negotiated under Article 3 [1] of the Arrangement.
(3) That, recognizing that this Memorandum aligns to the best knowledge of our two Governments, Hong Kong's export control practices and United States classification practices as far as it is practicable to do so (unless agreed otherwise), each Government will consult with the other, at the earliest possible opportunity, if it comes to the notice of either Gov- ernment that any problem in the classification of specific products may be developing, and that both Governments will seek by all means at their disposal to resolve any problems of classification practice which may be found to exist, in a manner compatible with the interests of both Governments. (4) That the Hong Kong Government will continue, during the third year of the Arrangement, the voluntary export spacing arrangements for the restrained categories in the manner and
1TIAS 5240; 13 UST 2672, 2681, 2675.
TIAS 5872