INDUSTRY AND TRADE
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talks were held in Paris in January 1970 regarding the 1969-70 import quotas for certain items of cotton textiles, the import of which from Hong Kong into France was restricted. The French Government decided to split the quotas into two parts, one to be administered by the French authorities and the other by the Commerce and Industry Department in Hong Kong.
Federal Republic of Germany: Under an agreement concluded in October 1969 between Hong Kong and the Federal Republic of Germany, Hong Kong agreed to continue export restraint on five groups of woven cotton textiles for a further nine months from January 1, 1970. Exports of grey fabrics and towels, also previously under restraint were liberalised from the same date. Subsequently the agreement was extended to cover the full calendar year.
The European Economic Community: With the ending of the Common Market's transitional period on December 31, 1969 the Member States of the EEC were no longer able to negotiate trade agreements bilaterally. The provisions of the Treaty of Rome require that with effect from January 1, 1970, the Commission act on behalf of the Member States. There were three preliminary meetings with the Commission during 1970, two in Brussels in January and in March and one in Geneva in July 1970 on the question of future cotton textile arrangements between Hong Kong and the EEC.
In October, formal negotiations were held in Brussels at the request of the EEC. These resulted in the conclusion of an agreement regarding all cotton textiles other than yarns. The agreement, which runs from January 1, 1971, is for three years, and covers exports to all Member States of the European Economic Community. Export restraint is to be applied to the trade covered except for certain fabrics, where a consultation arrangement was agreed.
Australia: In June, consultations were held in Hong Kong with the Australian Government on the renewal of export restraint by Hong Kong of cotton drills, other than grey, weighing between six ounces and 15 ounces per square yard. As a result, Hong Kong agreed to continue the restraint on exports of this item to Australia at an increased limit for the period July 1, 1970 to June 30, 1971. Improved flexibility in the form of 10 per cent carryover was also secured.