EXPLANATORY MEMORANDUM
1.
Following a sharp increase in imports into the United Kingdom of jackets, blazers, blouses and shirts from several non-Member countries and in particular Macao, the United Kingdom asked the Commission in December 1976 to enter into consultations with that country in order to limit the imports in question.
2.
The United Kingdom's request was examined by a working party made up of representatives of the Member States and chaired by a represen-
tative of the Commission.
This examination revealed that overall imports of the products in question had increased substantially and that they now accounted for a very considerable share of the market in these products in the Member State in question. This trend has resulted in a substantial drop in national production and employment in that sector.
The examination also showed that the trend of imports did not
at this stage warrant the placing of restrictions on imports of the pro- ducts in question into other regions of the Community from Macao.
At the close of the examination, the Commission representative proposed that the request of the Member State in question should be met,
to which the other delegations agreed.
3.
The request for consultations was made in a Note Verbale dated 28 January 1977 to the Portuguese Mission pursuant to Article 4 (2) of the Agreement between the European Economic Community and Macao on trade
in textile products.
4.
Consultations with Macao began on 21 March 1977 and ended on the
eame day with the initialling of a note in which Macao stated that it was prepared to exercise voluntary restraint in respect of the exporte in question as from 1 April 1977. The authorities of Macao are to limit
ite exports to a level which is such that the volume of exports for the
whole of 1977 remains within agreed limits.