Undertaking by the Commerce and Industry Department, Hong Kong regarding Hong Kong's export of cotton yarn, and woven cotton and polyester/cotton textile products to the United Kingdom

The Department of Commerce and Industry, Hong Kong,

has decided unilaterally to extend until 30 June 1974 the

arrangements governing trade in cotton yarr, and woven cotton and polyester/cotton textiles products contained in

the Memorandum of Understanding signed between the Department

of Trade and Industry, London, and the Commerce and Industry

Department, Hong Kong, on 29 December 1972.

2. The Commerce and Industry Department, Hong Kong, has

taken this decision having regard to the indeterminate stage

reached in the formulation of a new multi-lateral textile

arrangement, and the need to reduce the uncertainty arising

therefrom in order, as far as possible, that the operations

of buyers, sellers and manufacturers should not be disrupted.

It is therefore made on the understanding that, during its

currency, consultations between the European Economic Community and Hong Kong will be held in accordance with the provisions

of any new multilateral textile arrangement accepted by both

parties, with a view to the retroactive application of a new

bilateral agreement from 1 January 1974. At such time the

form of a new bilateral agreement will be considered by Hong Kong also in the light of any remaining discrimination against Hong Kong in the Generalised Preference Scheme of the enlarged European Economic Community.

3.

Basically, this unilateral act involves the replacement of the 1973 calendar year arrangements with an arrangement in

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