In return, the importing country is required to offer terms, including

base levels and growth rates, more liberal than those laid down in Article 3.

7. Articles 3 and 4 of the MFA are similar to Articles 3 and 4 of the

former Cotton Textiles Arrangement. Hong Kong's cotton textiles agreement

with the UK and with the Six have hitherto been on the "mutually acceptable"

Article 4 basis, under which she has administered the controls herself.

The Hong Kong Government has therefore been in a position to allocate the

quota between her textile exporters who are able to plan their business

with greater confidence, and obtain a better price, than would be the case

if the licences, and therefore the choice of supplier, were in the hands of

the importers.

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