- 3-
8.
quotas end 's utilisation of U.X quotas in 1973 wes only 79% overall.
b) There is evidence to contest the theory
that imports increase when domestic markets are in recession. I USA, imports of textiles and clothing decreased in quantity by 14 in 1973 from 1974 and by 13% in 1975 from1974. In li.. total imonts of textiles and clothin- in 1975 increased in value by but depreciation of sterling mesked a decline in volume of 12%.
c) import penetration levels are an unsatisfactory
measure of the health of en industry which cynorts a high percentage of its production (e.g. UK)
d) owing to the slow pace at which the EC itself
conducted its negotiations, bilateral agreements with mejor low cost suppliers were not concluded until 1975 and even 1976. The growth of import penetration has been slowed down since the implementation of these agreements and it is unre:listic to judge the future from the experience of the early years of the present HFA when many supliers were not restrained.
Conclusion
Hong Kong believes that extension of the MFA without modification is the only practicable course because
a) the developing countries would not accent
further resrtictions which amount to major breaches of the basic principles of the NPA;
b) the advocates of significant modifications to
the MFA have been unable to convince other sig- natories that the chances are justified or that they would achieve their objects for the reasons set out above;
c) further restrictions at this juncture on the
textile trade could ultimately have adverse effects on the libaneliantion of world trade in ceneral.
m
Hong Kong Government Office
10th. May, 1977