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INDUSTRY AND TRADE
Late in 1962, the Hong Kong Government asked the United States Government to enter into negotiations regarding the admin- istration of export controls for the second Long Term year begin- ning on 1st October 1963. As a result a delegation from Hong Kong, headed by the Director of Commerce and Industry and including representatives of the Hong Kong textile industry as advisers, visited Washington at the latter end of May 1963 and entered into detailed negotiations with officials of the State, Com- merce and Labour Departments. These negotiations were discon- tinued in early June, there being a number of outstanding areas of disagreement between the two sides. Further protracted negotia- tions continued by correspondence and were finally brought to a conclusion by discussions in Hong Kong in October. Hong Kong will continue to exercise restraint over exports in 35 categories of textiles with one further restraint limiting the total yardage of corduroy which may be utilized in garment exports (which are already almost wholly under restriction under a variety of garment categories). The United States Government lifted restrictions in three categories which had been restrained during the first Long Term year.
One of Hong Kong's most promising textile customers during recent years has been West Germany. The Federal Government decided in August 1963 to utilize the Long Term Arrangement to request restraint on exports of cotton nightwear and cotton towels during the second Long Term year at very low levels. Hong Kong, acting within the terms of the Long Term Arrangement, has asked for further information to support the German claims that their market is being disrupted. Pending consideration of this and to protect the existing trade from speculation, provisional quotas to local shippers and manufacturers were issued in both categories. Shortly after receipt of the German requests for restraint in nightwear and towels, the Hong Kong Government was informed that the West German Government had lifted import restrictions on cotton woven shirts from Hong Kong. This category had been subject to restraint during the first Long Term year but exports from Hong Kong had fallen short of the annual restraint level (700,000 dozens) agreed.
The Hong Kong Government continued to exercise restraint over exports of cotton woven nightwear and cotton woven shirts