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or even less in the case of woollen items", portan

The three percent growth rate will apply to such

categories as T-shirts, other knit shirts, woven shirts and

blouses, ladies' woven trousers and nightwear.

There are, however, some improvements. In particular, the extent to which Hong Kong may carry forward quotas (i.e.,

borrow in one year from the following year's quota when demand

is strong) has been increased from 6 to 7.15 percent.

"And there are other technical adjustments here and

there, such as the merging of certain categories, which will

add up in terms of dollars and cents", Mr. Dorward said.

"We have accepted these terms because we were faced

with an inflexible US position and there was a real need to

remove uncertainties and provide the trade with a stable

basis on which to plan forward", Mr. Dorward added. "The

negotiations were tough and our industrial advisers agreed

with reluctance that we should accept these terms. That is

all I

em prepared to say about the manner in which the negotia-

tions were conducted".

Commenting on the precedent set by this agreement,

particularly in regard to future negotiations with the DC,

Mr. Dorward said that the situations were not really com-

parable.

"In public statements EEC spokesmen and representat-

ives of some member states have called for a reduction in

growth rates for sensitive categories imported from major

(cont'd)

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