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2.
We expect utilisation of EEC quotas to increase
somewhat in 1987-88, partly because recent trends in
exchange rates are tending to make our exports more
competitive in the EEC, and partly because the new HK/EEC
textiles agreement, which took effect this year, for the
first time allowed some modest transfer of quota between
Member States. We plan to continue to ensure that such
flexibility as is available under the agreement is used to
the full extent that demand permits, including this new
provision for transfer between States.