Teal
Chairman
in the nouat since
45.
Mr. Chen, so ir you have not provided Hong Kong with any justification for the proposals you have made in respect of the 8 products which the EEC regards as "politically and economically very sensitive". And, if I have correctly intérpreted your remarks on the first day of these negotiations, it is not your intention to provide any justification at all. The only statistics which you have given us are 1976 EEC. production, consumption, exports and imports of these produc ts, with imports broken down.
only into those from Hong Kong, South Korea, Taiwan, India, Japan and the US. These figures by themselves provide an incomplete picture of the market situation in each of the 8 products. We have' however made an attempt at putting together a more complete picture by fitting these figures into some others that we already have, and will give you some comments on each product before giving you a response to your proposals.
We
Cotton varn
Percentage charge
1975 over
Percentage. charge 1976 over
Share of Consumption in 1976
1975
1974
(a) EC Production
-13.0%
12.2%
75.5%
(b) Imports from Non-
EEC 801 Tces
of which
Hong Kong
+ 3.3%.
+45.8%
24.5%
-46.7%
-45.9%
0.07%
Turkey
+14.6%
+142.3%
7.8%
Greece -
25.4%
*
+42.7%-
4.55...
Brazil
+27.2%
-10.6%
2.5%
Spain
+37.6%
+11.1%
1.8%
(c) Imports from
EEC sources
-19.4%
+30.5%
8%
46.
It
In view of the substantial drop in imports from Hong Kong in 1975 and 1976 and Hong Kong's very small share of consumption, any damage that the ELC industry may have experienced cannot be attributed to Hong Kong. cannot even be said that imports from Hong Kong are creating a real risk of market disruption. There is no case for
placing a limit on this item.