165/2/iii
Draft Memorandum to the European Commission
and Member States
1. Opening courtesies.
2. As the Commission is aware, the Hong Kong Government is unilaterally exercising restraint on exports of certain textiles and garments from Hong Kong to the Member States of the European Economic Community for the year ending
31st December, 1974.
3. This action was taken by the Hong Kong Government in
view of the then unsettled state of world trade in textiles
and the multilateral negotiations that were taking place in the G.A.T.T. for, a multifibre textile arrangement. The Hong Kong Government particularly took into account indications that at that time the Community was not in a position to enter into bilateral negotiations with Hong Kong. This action was therefore taken, in a spirit of co-operation and having regard to the desirability of avoiding disruption to the orderly development of trade in textile products both for Hong Kong exporters and for the Community's importers.
4.
The Hong Kong Government now understands that the Community has under active consideration, possible future arrangements with Hong Kong under the terms of the Arrangement regarding International Trade in Textiles. As the Commission/
Government is aware, Hong Kong is concerned about the continuing exclusion of its textile products from the benefits of the Community's Generalised Scheme of Preferences. However, it has noted that the Commission has proposed that there should be no change in 1975 in the arrangements regarding textile products under the Community's Generalised Scheme of Preferences pending the conclusion of bilateral agreements under the International Arrangement. The Hong Kong Government is therefore hopeful
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