9

If these measures are now adopted by the French Government,

then, since they do not affect Hong Kong, we will be able to

continue the exports of the products concerned to France

in accordance with the provisions of the EEC/Hong Kong

bilateral agreement.

return to normal within the next few days, the Government

will obviously have to take the matter up again with the

appropriate authorities in Paris and Brussels on an urgent

If however the situation does not

basis.

As far as the actual trade effects are concerned,

I understand that shipments of the goods concerned which

were made before the introduction of the French measures

on 23 June have entered France and there are no remaining

difficulties in respect of such shipments. The effect

on goods already ordered but not yet shipped has been,

however, a different matter. I understand that in view of

the uncertainties involved, some French importers have

asked Hong Kong exporters to stop shipments. But, as I said,

we hope that the situation will return to normal in a few

days time.

Now, sir, I turn, as requested by Mr. Tien, to

the umbrella under which all this activity does, or rather

should, take place. I refer to the GATT Multi-Fibre

Arrangement; although one might be forgiven in view of

what I have just said about Canada, Australia and France

for thinking that it is a very leaky umbrella.

/The

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