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For our protection, Mr Chairman, we would like to see the HK Delegation to the GATT Textile Negotiating Group Meeting putting forward, in that International Forum, that in any new Multilateral Arrangement consideration should be given to requiring that a clause be inserted to the effect that where there are quotas established and agreed, either bilaterally or multilaterally, under the terms of the Arrangement, tariff discrimination should not be permitted to be imposed since it would have the effect of imbalancing the terms of the quota restriction.
The Commonwealth Preference system is to be abandoned and the preferential rates of duty to be run down over the next four years.
Since this system is now accepted as being outdated, we feel, Mr Chairman, that the raw material mix should no longer be required and that representation to this effect should be pressed now by the HK Government with HMG.
Mr
There is one other point of substance that we would like you to raise with HMG since it has seen fit to discriminate against HK and we feel that such discrimination is not only objectionable but unwarranted, and that unequal treatment anywhere can no longer be justified. Chairman, we think the time has come for consideration to be given to removing UK and Commonwealth Preference in HK. They are legacies of the system which the mother country has now seen fit to abandon itself. I refer to the fact that UK and Commonwealth exports to HK of cars, tobacco, alcohol and hydro-carbon oils continue to enjoy duty preferences on entry into HK. Surely, Mr hairman, the time has come in this duty free port to remove these last remaining preferential duties?
From what we have just said, you will see Mr Chairman that our fears are both for the short and the long term and our situation is made no easier by the many other factors affecting the HK textile industry at the present time. We understand that the UK quotas this year are considerably under-utilised which serves to underline this point. We admit we are alarmed but we have every right to be since we are talking about an industry that accounts for nearly half of all HK's domestic exports.
Although not within our terms of reference we know that the footwear industry is in a similar plight to us and we believe that what we have said for textiles applies equally to footwear.
We therefore ask you to make our position quite clear to HMG and to consider the points we have outlined and to represent them with your support. We ask you to
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/make this