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it has at present on cottons by means of a Delegation of
Authority from H.M.G. to the Government of Hong Kong, are under
consideration.
Non-Cotton Textiles (Man-made Fibres and Wool)
11. Apart from restrictions inconsistent with the rules of the
GATT which France maintains on Hong Kong's non-cotton textiles,
both Britain and the EEC have only tariff protection against
nan-made fibre goods from Hong Kong. On wool goods, Hong Kong
faces a tariff in the EEC, but enjoys duty-free entry into
Britain.
12. All major developed countries other than the United States
restrict imports of some non-cotton textiles from Japan. The
United States has for sone time been seeking to restrict imports
of non-cotton goods from Japan, Hong Kong, Korea and Taiwan
either by means of voluntary restraint arrangements, or by
quotas inposed under the Trade Bill now before Congress.
and the ECC on the other hand and working towards the
liberalisation of trade in Japanese non-cotton textiles, subject
are
to reciprocal concessions by the Japanese.
Britain
13. The Japanese have so far failed to reach agreement with the
US, largely because the restrictions sought by the Americans
have been unacceptable to Japanese industry.
A further round
of talks is, however, now taking place, which may end in
agreement. Hong Kong would prefer to negotiate a voluntary
agreement rather than have quotas imposed under the Trade Bill.
We have however taken the line that Hong Kong must not negotiate
with the Americans until we know the outcome of the wrangle
7.
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