M
26. AS WE UNDERSTAND THE CURRENT EEC POSITION, THE
COMMISSION IS TO FORMULATE ITS 1975 GSP PROPOSALS FOR THE
TEXTILES SECTOR SEPARATELY AT A SOMEWHAT LATER DATE.
THIS MAY NOT PERHAPS RE UNTIL BILATERAL ARRANGEMENTS FOR
QUANTITATIVE RESTRICTIONS HAVE BEEN AGREED OR A NEW EEC
COMMERCIAL POLICY FOR TEXTILES DRAWN-UP.
COULD CLEARLY TAKE SOME TIME.
THESE MATTERS
IN THE MEANWHILE WITH EVERY
MONTH THAT GOES BY THE HONG KONG POSITION CONTINUES TO DETERIORATE
AND THE CONCEPT OF EQUALITY IS UNDER-MINED.
IN A YEAR FROM
NOW THE LOSS OF TRADE TO OUR COMPETITORS COULD WELL BE
IRREVOCABLE.
IMMEDIATE EFFECTS CAN BE NOTED FROM THE FACT
!
THAT IN 1973 HONG KONG EXHAUSTED ONLY 67% OF OUR TOTAL EEC
TEXTILE QUOTAS COMPARED WITH WELL OVER 90% IN 1972. WE HAVE
ALSO NOTICED AN ADVERSE EFFECT ON FOREIGN AND LOCAL INVESTMENT
IN HONG KONG IN THIS SECTOR, AND NO RECENT INCREASE IN OUR
TEXTILE PRODUCTION CAPACITY CAN BE REPORTED.
IT IS OBVIOUS
THAT THE NORMAL EXPANSION WHICH WOULD TAKE PLACE IN HONG KONG
IS BEING DIVERTED OVERSEAS.
27. WE UNDERSTAND THAT IN THE NEAR FUTURE THE EEC WILL
BE SEEKING BILATERAL DISCUSSIONS AND NEGOTIATIONS WITH US, AND
WITH OTHER TEXTILE SUPPLYING COUNTRIES, WITH A VIEW TO
REACHING AGREEMENT ON FUTURE QUANTITATIVE RESTRICTIONS FOR 1975,
AND BEYOND, WITHIN THE TERMS OF THE NEW INTERNATIONAL MULTI-
FIBRES ARRANGEMENT FOR THE TEXTILES TRADE. GIVEN THE FACT THAT
/WE ALONE