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recount here the many shifts and turns which the negotiations,

both formal and informal, have recently taken in Geneva.

Throughout them Hong Kong has stuck firmly to a policy of

advocating a straight extension of the terms. In this

we have been in concert with many other participants,

developing and developed. But although a group of participants

including Hong Kong, who between them represent about 85 per cent

of world trade in textiles, reached a consensus last Sunday,

it was not possible for the Textiles Committee as a whole

to agree.

The partial consensus was on a complex form of

words agreeing amongst other things a flexible approach to

future negotiations within the framework and in accordance

with the provisions of a renewed and unchanged MFA.

I shall be putting the terms as agreed between the

negotiators before the Textiles Advisory Board so that,

on the basis of their advice, I can make a recommendation as

to whether the Hong Kong Government should stand ready to

sign a protocol, incorporating these terms, which is expected

to be opened later in the year to provide for the extension

of the MFA.

In closing sir, may I refer to Mr. Cheong-Leen's

call for accelerated diversification of industry outside

the field of textiles. It is, of course, well known that

for many years the textile sector has represented about

50 per cent of our exports and the same share of industrial

employment. This in itself is a remarkable achievement by

that sector which has been set about by more restrictions

than any other. Mr. Tien has drawn our attention, however,

to the fact that in the first five months of 1977 when,

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