INDUSTRY AND TRADE
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United Kingdom: Although outside the ambit of the Cotton Textiles Arrangement, Hong Kong's exports to the United Kingdom of cotton yarn, cotton woven piecegoods, garments and made-up articles are limited under an agreement reached in 1966 and extended to cover exports of these items in 1971.
The Government, on the advice of the Textiles Advisory Board, made further representations to Her Majesty's Government early in the year regarding its decision, announced in July 1969, to abolish the existing quotas and to impose a tariff on imports of cotton woven textiles into the United Kingdom from Commonwealth countries as from January 1, 1972. However, the British Government decided not to alter its decision to introduce the tariff, although under the Finance Act 1971, it was empowered to grant relief from the new import tariff on Commonwealth textiles in respect of such goods exported under quota on or before December 31, 1971, but not arriving in the United Kingdom until on or after January 1, 1972.
Details of the new Commonwealth Preference rates of duty on imports of cotton yarn and cotton woven textiles, which will apply from January 1, 1972, and the related changes in the United Kingdom tariff classification of these items were announced towards the end of the year. The new Commonwealth Preference rates of duty are generally 85 per cent of the full rate.
In December the British Government announced that, although the new tariff would still be introduced on January 1, 1972, the decision to abolish quotas on imports of cotton yarn and cotton woven products as from that date would be reversed and that the existing quotas would remain in 1972. At the end of the year discus- sions on this new policy were being held between the British and Hong Kong Governments.
In July, the Minister for Trade announced that Her Majesty's Government would introduce a generalised preference scheme for developing countries on January 1, 1972. Hong Kong is a beneficiary under the scheme and full details of the products covered, rates of preferential tariff, origin criteria rules etc were published later in the
year.
The Government, in collaboration with Hong Kong trade and in- dustry, continued to maintain a close watch on the progress of the United Kingdom's negotiations to join the EEC. The inclusion of Hong Kong in the Community's generalised preference scheme for