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4.
(a)
(b)
generally to preserve Hong Kong's GATT Most Favoured Nation (M.F.N.) rights of access;
to facilitate Hong Kong's external trade by
maintaining an internationally acceptable
certification and documentation system, and
also by maintaining the integrity of export
licensing systems where a need to regulate
its exports exists (see para. 4 below).
The only area where Hong Kong has surrendered its M.F.N.
rights is in respect of textile products covered by the Multi-
Fibre Arrangement (MFA). Under this Arrangement Hong Kong
has entered into a series of bilateral export restraint
agreements with a number of importing countries. Hong Kong's
rationale, in this regard, is that the orderly regulation of
trade in textiles is preferable to anarchy.
5. The MFA, concluded in 1974, has been extended for a thirâ
term until 31 July 1986. As a signatory of the MFA, Hong Kong
is prepared to honour all the obligations devolved on it
including accepting restraints on its exports where the
restraints are consonant with the terms of the MFA.
6.
The bilateral negotiations under the renewed MFA have
proved to be difficult and there is a tendency on the part
of importing countries to disregard their obligations under
the MFA. In Hong Kong's view, this is an unhealthy trend.
One means whereby such a trend could be arrested would be a
conscious multilateral concensus towards that. The GATT
Ministerial Meeting scheduled for 24 to 26 November 1982
would seem to be an appropriate forum to focus attention
on the textiles issue. If Ministers are to address themselves
to problems affecting the international trading system, it would be a serious omission if they were to fail to give due regard to a sector of trade which is of great importance
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