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(D) THIS IS A SUBJECT TO WHICH THE HONG KONG GOVERNMENT, WHO ARE UNDER GREAT PRESSURE FROM THEIR OWN TEXTILE TRADE, ATTACH VERY GREAT IMPORTANCE, THE HONG KONG TEXTILE INDUSTRY WHICH IS CENTRAL TO THE TERRITORY'S ECONOMY IS NOW EXPERIENCING MAJOR DIFFICULTIES. MEMBER STATES WILL RECALL THAT JUST BEFORE THE SUMMER BREAK A TEAM OF HONG KONG OFFICIALS VISITED THE COMMISSION AND OTHER MEMBER STATES SETTING OUT THEIR CASE ON TEXTILES. THEY NOTED IN PARTICULAR THAT HONG KONG'S TEXTILE AND FOOTWEAR EXPORTS TO THE EEC HAVE FALLEN MARKEDLY SINCE 1971 AND THAT THE DOWNWARD TREND IS CONTINUING. THE DISCRIMINATION HAS LED BUYERS INCREASINGLY TO DIVERT THEIR ORDERS AWAY FROM HONG KONG TO SUPPLIERS IN COUNTRIES WHICH ARE BENEFICIARIES UNDER THE SCHEME:

(E) THE COMMISSION SHOULD RECONSIDER THIS QUESTION AND, IN ADDITION TO THEIR PROPOSALS ON HONG KONG FOOTWEAR, ALSO PROPOSE THE INCLUSION OF SOME CATEGORIES AT LEAST OF HONG KONG'S TEXTILES FOR THE 1975 SCHEME, AS A FIRST STAGE IN A PROGRAMME TO COVER ALL HONG KONG'S TEXTILE EXPORTS AS SOON AS POSSIBLE. I FURTHER HOPE THAT THIS MATTER WILL RECEIVE SYMPATHETIC TREATMENT FROM OTHER MEMBER STATES.

CALLAGHAN ·

EUROPEAN ECONOMIC DEPARTMENTAL DISTRIBUTION

EID HKTOD

ADDITIONAL DISTRIBUTION

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