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INDUSTRY AND TRADE
now more than covers overheads; but the future pattern of claims remains to be seen and will determine how soon the corporation can be truly self-supporting.
INTERNATIONAL ECONOMIC RELATIONS
As the United Kingdom has acceded to the General Agreement on Tariffs and Trade on behalf of Hong Kong, the Colony's exports attract most-favoured-nation tariff treatment in the majority of its overseas markets and are protected from discriminatory import restrictions. Nevertheless, difficulties do occur from time to time. During the past year, Hong Kong made representations, outside the field of cotton textiles which are covered by their own particular arrangements, to the governments of Algeria, Austria, France and Nigeria. In addition, Hong Kong experienced discriminatory barriers to trade imposed by the Republic of Ireland, which is not yet a contracting party to the GATT.
Hong Kong continued to follow, with considerable interest, further developments designed to bring about the free movement of goods within the European Economic Community. As the community already provides a market worth about $600 million annually, Hong Kong is particularly concerned that the process of creating the Common Market should not result in limitations on the community's external trade. In May, Britain again formally applied to join the community. As this application could have far-reaching effects on Hong Kong's external trade, the government analyzed the possible consequences in close collaboration with Hong Kong trade and industry, and held talks with London officials during July and October.
The year has been one of intense activity in the sphere of multi- lateral commercial policy. A limited scheme of preferences for imports from less-developed countries, including Hong Kong, was introduced by Australia in 1966 under a waiver granted by the Contracting Parties to the GATT and this scheme was extended in scope after the first year of operation. In spite of this initiative, a general scheme of preferential entry to the markets of the developed countries of Western Europe and North America for exports of less developed countries has yet to be agreed. Some progress in
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