6. THE SPECIAL SAFEGUARDS WHICH ALREADY APPLY TO TEXTILES UNDER THE COMMUNITY'S SCHEME ARE SUFFICIENT TO CONTAIN ANY EXTRAORDINAR
VEMENT IN TEXTILE EXPORTS FROM -HONG KONG OR ELSEWHERE. THE PROVISIONS OF THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES, TO WHICH BOTH THE EUROPEAN ECONOMIC COMMUNITY AND THE UNITED KINGDOM ON BEHALF OF HONG KONG ARE PARTIES, AFFORD FURTHER
PLECTION IN THIS REGARD.
7. THE HONG KONG FOOTWEAR INDUSTRY IS SMALL SCALE IN CHARACTER
AND UNDER-CAPITALISED. BOTH PRODUCTION AND EXPORTS HAVE DROPPED
SHARPLY IN RECENT YEARS. THE HONG KONG FOOTWEAR INDUSTRY HAS ALL
THE CHARACTERISTICS OF THE KIND OF INDUSTRY WHICH THE GENERALISED
SCHEMES OF PREFERENCE ARE GENERALLY DESIGNED TO ASSIST AND ITS
PERFORMANCE CERTAINLY DOES NOT JUSTIFY DISCRIMINATION AGAINST
ITS EXPORTS.
FEELS
8. THE HONG KONG GOVERNMENT HAS-MADE KNOWN TO US, ITS SERIOUS CONCERN ABOUT REPORTS THAT THE COMMISSION IS CONSIDERING FURTHER
CHANGES TO THE SCHEME THAT WOULD REDUCE BENEFITS FOR THE MORE
COMPETITIVE AMONG THE DEVELOPING COUNTRIES.
}
9. WHILE WE FULLY SUPPORT THE CONCEPT THAT THE SCHEME SHOULD
PROVIDE ENHANCED TRADING OPPORTUNITIES FOR THE LEAST DEVELOPED
OF THE DEVELOPING COUNTRIES WE DO NOT BELIEVE THIS END SHOULD BE
SOUGHT BY ACTIONS WHICH MAY BE HARMFUL TO THE TRADING INTERESTS
OF MORE COMPETITIVE DEVELOPING COUNTRIES AND WHICH MAY, IN
ADDITION, HARM. THE TRADING INTERESTS OF HONG KONG TO THE BENEFIT
OF CERTAIN OTHER MORE COMPETITIVE DEVELOPING COUNTRIES. WE CONSIDER
THAT THE EXISTING 'BUTO IR' ARRANGEMENTS ALREADY ENSURE THAT THESE
MORE COMPETIVE DEVELOPING COUNTRIES, INCLUDING HONG KONG, DO
NOT OBTAIN A DISPROPORTIONATE SHARE OF THE BENEFITS OF THE SCHEME.
t
10. IN SUPPORT OF THIS CONTENTION WE INVITE ATTENTION TO THE FACT
THAT HONG KONG REACHED THE BUTOIR FOR 24 CATEGORIES IN 1972 AND
FOR 22 CATEGORIES IN 1973. OF THESE, 21 CATEGORIES ARE COMMON TO BOTH YEARS, AND OF THE 21, 17 WERE SENSITIVE CATEGORIES. IN NO CATEGORY IN WHICH HONG KONG REACHED THE BUTOIR, HOWEVER, WAS THE TARIFF QUOTA AS A WHOLE FILLED. IT IS CLEAR, THEREFORE, THAT HONG
KONG DID NOT PREVENT OTHER BENEFICIARIES FROM SECURING BENEFITS
2. CONFIDENTIAL
AND