INDUSTRY AND TRADE
19
Hong Kong was included in the second phase of the Japanese scheme on April 1 with a discriminatory exclusion list of 96 items representing over 50 per cent of Hong Kong's principal exports to Japan. Strenuous efforts were made by the British Government and the Hong Kong Government with a view to eliminating the discrimination against Hong Kong. Following the British Prime Minister's visit to Tokyo in September, the Japanese Government undertook to review in the near future the Hong Kong exclusion list.
Hong Kong's claim to be considered a beneficiary under the various schemes has been formally stated by the British Government and every effort continues to be made to ensure that Hong Kong's interests are safeguarded.
Australia: Following consultations in Hong Kong with Australian officials in July 1972, the Hong Kong Government agreed to restrain exports of certain cotton denims to Australia for a period of one year beginning September 1, 1972. The export authorisation system in respect of exports of certain cotton drills to Australia expired on June 30, 1972 and was allowed to lapse.
On September 1, 1972, the Australian Government announced the introduction of tariff quotas on imports of woven shirts, knitted shirts and blouses and knitted. outerwear during the period September 1, 1972 to June 30, 1974. Imports within the tariff quotas would be subject to the lower rates of duty recommended in the Tariff Board Reports of September 1971. Imports in excess of the tariff quotas would be subject to an extra duty of A$7 per kilogram.
Austria: On April 1, the Austrian Government introduced its generalised pref- erence scheme with Hong Kong included as a beneficiary. The scheme provided for unlimited entry at reduced tariff rates for agricultural products and a number of manufactured goods, with Hong Kong excluded from preferences on footwear and a range of textile items.
Canada: In May 1972, consultations were held with officials of the Canadian Government regarding Hong Kong's exports of certain woven and knitted shirts to Canada. As a result of these consultations, and following the expiry on September 30, 1972 of the 1971-2 Hong Kong/Canada textiles agreement, a new system of control in respect of shirts was implemented whereby only 77 per cent of the 1971-2 annual level of restricted trade was subject to export control. In addition there was an un- reserved global quota on shirts which was administered by the Canadian authorities. Hong Kong was given the right, during the new restraint period, to participate in this global quota.
Following consultations in Ottawa in June 1972, the Hong Kong/Canada textiles agreement was renewed for a further year. The restraint on cotton woven nightwear was lifted and was replaced by an export authorisation arrangement. Exports of bed sheets and pillow cases also became subject to export authorisations.
Denmark: Consultations with representatives of the Danish Government on Hong Kong's exports of shirts took place in January. Following these discussions, Hong Kong unilaterally undertook to restrain exports to Denmark of tailored shirts of cotton and man-made fibres during the period January 1 to December 31, 1972.