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(7) Two headings (69.11 and 85.21 C and E) will

include only 1% of imports from non beneficiary countries in the supplementary amount because of fears of Hong Kong increasing its exports of these products under preference.

(8) Butoirs of less than 50% are established in some

instances, not only for the Hong Kong sensitive list but also particularly for certain textiles and petroleum products -but there are others as well noted in the Annexes (pages 16-17).

(9) The sensitive and semi-sensitive lists will be

revised annually (page 19).

(10) Semi-sensitive "ceilings" are not to be

allocated among the Member States. Preference will not necessarily be suspended if the ceilings or butoirs are reached but will be examined on a case by case basis within procedures to be established (pages 20-21).

(11) Textiles

(a)

(b)

(c)

preferences on cotton textiles and substitutable mmf (19 categories) to be confined to members of the 77 who are signatories of the CTA (six countries);

the offer on these items is also limited to the duration of the CTA;

these quotas can be opened to other beneficiaries not signatories of the CTA if they sign restraint agreements with the Community at least as rigorous as those agreed by CTA signatories;

(a) the base amount for these items will only take account of imports from the six signatories of the CTA;

(e) there is no supplementary amount for some

textile products;

(f) the butoir has also been fixed at lower than 50% (usually 30%) for some textile

products (pages 21-26).

(12) The quotas will be broken down by Member States

according to the key on page 27 (based on trade, GNP and population) and with no Community reserve. The Commission recognise (second para on page 28) that this could lead to sterilisation of part of the quotas (e.g. in France and Italy) (pages 27-28).

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