COMMENTING ON THE AGREEMENT THE ACTING GOVERNOR, SIR DENYS ROBERTS, SAID: +WE HAVE ACCEPTED THIS OUTCOME VERY RELUCTANTLY AND WITH MANY MISGIVINGS.+
+SOME PROVISIONS OF THIS AGREEMENT, + HE SAID, +HAVE
NOT BEEN WILLINGLY ACCEPTED BY HONG KONG, BUT WE WERE FACED WITH THE VERY REAL POSSIBILITY THAT THE COMMUNITY WOULD EE PREPARED TO IMPOSE IMPORT RESTRICTIONS ON US, REGARDLESS OF
THE CONSEQUENCES.+
IN FOUR CATEGORIES WHICH ARE VERY IMPORTANT TO HONG KONG,
THE COMMUNITY INSISTED ON SEVERE REDUCTIONS IN OUR QUOTAS.
SIR DENYS EXPLAINED THAT HONG KONG HAD OFFERED TO NEGOTIATE REDUCTIONS FROM OUR 1977 QUOTAS IN THESE PRODUCTS TO THEE LEVEL
OF THE COMMUNITY'S IMPORTS IN 1976, AN OFFER WHICH COMPLETELY
MET THE COMMUNITY'S REQUIREMENT THAT SO-CALLED LOW-COST'
IMPORTS WHOULD BE 'STABILISED' AT 1976 LEVELS OF TRADE.
+DESPITE THIS+, SIR DENYS SAID, THE COMMUNITY INSISTED THAT OUR ACCESS TO THE EEC MARKET FOR THESE FOUR
PRODUCTS IN 1978 SHOULD BE CUT BACK MUCH FURTHER 3,000 TONNES OF COTTON CLOTH, 7.8 MILLION PAIRS OF TROUSERS 9 MILLION SHIRTS AND 5.7 MILLION PAIRS OF BRIEFS.+
BY
+THE PURPOSE OF THESE CUTBACKS WAS, SO WE WERE TOLD,
NOT TO PROTECT THE COMMUNITY'S INDUSTRY, BUT TO LEAVE ROOM FOR NEW SUPPLIERS TO DEVELOP THEIR EXPORTS TO THE EEC OF TEXTILE PRODUCTS OVER THE NEXT FEW YEARS.+
+BUT+, SIR DENYS WENT ON, +SINCE IT TAKES TIME TO
CREATE MANUFACTURING CAPACITY AND TO BUILD UP TRADE, THE COMMUNITY'S PLANNED REDISTRIBUTION OF TRADE AMONG THE DEVELOPING COUNTRIES AND TERRITORIES IS UNLIKELY TO WORK. INSTEAD THE PRINCIPAL BENEFICIARIES ARE LIKELY TO BE OTHER DEVELOPED COUNTRIES WHOSE ACCESS TO THE COMMUNITY'S MARKET WILL REMAIN
COMPLETELY UNRESTRAINED.+
/NEVERTHELESS
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