54
INDUSTRY AND TRADE
At the meeting of the GATT Cotton Textiles Committee in December, the United Kingdom presented its proposals for the regulation of cotton textile imports from developing countries for 1966–70. Imports from all these sources will be restricted to an overall 'global' quota with country quotas at existing levels set aside for traditional Commonwealth suppliers, such as Hong Kong and India and--possibly-Pakistan.
In order to keep the trade moving until international discussion on the British proposals was completed, agreement was reached on an interim arrangement whereby 50 per cent of Hong Kong's country quota could be shipped without prejudice to the final post-1965 arrangements.
Pressure during the year for restrictions in the textiles field was not confined to cotton textiles. By agreement with the Federal Republic of Germany exports of woollen knitwear from Hong Kong were regulated by a system of export authorizations. Under this, the Hong Kong Government guaranteed shippers the issue of export licences, when the goods were ready for shipment, during the six months' validity of the authorizations, and the Federal Government undertook to permit entry of goods so authorized. Towards the end of October the issue of further export authoriza- tions was temporarily suspended after consultation with the author- ities in Bonn, who had from time to time expressed concern at the rapid growth of this trade. Export authorizations for shipments on and after 1st January 1966 were issued as usual on application.
DOCUMENTATION OF EXPORTS
Import and export licensing formalities have always been kept to a minimum consistent with Hong Kong's international obliga- tions and the spirit of free trade. Despite this, complex procedures have had to be established to ensure that Hong Kong's respon- sibilities in respect of restraints on cotton textile exports are met.
With the growth in the export of Hong Kong products, certifica- tion of Hong Kong origin has also become increasingly important. Since Hong Kong has practically no raw materials, the origin of goods manufactured by its factories is established by the work carried out in transforming imported raw materials into entirely new products. The Hong Kong General Chamber of Commerce,