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THERE HAS BEEN SOME MERGING OF SPECIFIC CATEGORIES IN THE APPAREL GROUP WHICH WILL ENABLE COMPANIES TO REACT HORE FLEXIBLY TO MARKET DEMANDS FOR THESE ITE:S.

SPECIAL ARRANGEMENTS HAVE ALSO BEEN MADE TO TAKE ACCOUNT

OF THE CURRENT FASHION DEMAND FOR HATCHING COTTON LEISURE JACKETS AND TROUSERS. THE U.S. HAS AGREED THAT THIS FACILITY CAN BE USED IMMEDIATELY AND THE NECESSARY HODIFICATIONS TO THE PRESENT ARRANGEMENTS HAVE BEEN AGRLEJ,

+ONE PARTICULAR AREA OF DIFFICULTY THAT HAS PLAGUED US/HK

· TEXTILE RELATIONS IN THE PAST,+ IR. MILLS SAID, +HAS BEEN THE SO-CALLED TRIGGER POINT SYSTEM UNIDEBY PRODUCTS REACHING PRE-DETERIINED LEVELS COULD DE RESTRAINED UNILATERALLY BY THE US IF V2 FAILED TO AGREE THAT A CAUE FOR RESTRAIT HAD DEEN MADE.

+UNDER THE NEW ARRANGEMENTS CONSULTATION HUST BE BASED ON THE HONG KONG EXPORT AUTHOMENTION REPUTILG SYSTEN AND, MARKET CONDITIONS IN THE U.S. KOVOVER, ANY DISAGRUENENT BETWEEN HONG KONG AND THE U.S. ON THE KLED FOR FURTLER LIMITS CAN BE REFERRED TO THE TEXTILES SURVEILLANCE CODY IN GENEVA FOR ITS RECOMMENDAT- IONS ON THE HATTER.

+I AM CONFIDENT THAT KE SHALL NOT HAVE TO RESORT TO THIS, + ADDED MR. HILLS, +CUT IT IS OBVIOUSLY A USEFUL THING TO BE ABLE TO FALL BACK ON SHOULD THE KEED ARISE.+

MR. HILLS SAID THAT BECAUSE OF THE PARTICULAR DIFFICULTIES THE VOOL SECTOR OF TIE U.S. TEXTILE INDUSTRY IS EXPERIENCING AT THE MOMENT, IT IS KOT DZEN POSSILLE TO SECURE ANY SIGNIFICANT GROUTH ON THE FALGENT ARRANGEMENTS COVERING HONG KUNG'S EXPORTS OF VOOL TEXTILES.

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+VOJEVER, THE HOU AQREEMENT PROVIDES A LITTLE MORE EXPORT CAPACITY 7.0 7.3 (Azur (.2,* HE SAID, +AD DE AQULGATE LIMIT FOR UGUL C2 41 LILLION &QUIN YARDS IS HOLI TUDI ELOUGH TO COVER THE CUNT VOLLE OF CLO❖

II. HILLS CAID MUUT A' THOUGH THE NEGOTIATIONS REQUIRED SO..E HARD LARALING LV

THE NON, ISLESTIAL FELT THAT

THE U.S. 1.41 1.8 1. DIFFICULTIES, AD 1

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DE LIG VORY MILLY TI KUQ,BOUT.

OTHER MENCERS OF THE COMMERCE AND HUSTY DEPARTIENT IN THE HONG KONG, ZLECTION VILLE 1... Feled T520, 1... UMMA.. C........J AND IDAS PATLICA LAJ, HWY W ME VON DY II, AL3 ...i], 1. LN, ALLER FOR 10g 10 COIL AFTZEKO AT THE UNITISH GLASY HI DASHLIST...

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IR. B.I. BAROV,

FOUR IDEEDS OF THE T ITILES ADVISORY BOADO MR. C.K. C..3, 1.2. MCK TI AD E. RAIS MH - SERVED AS HDUSTRIAL A VISS 13 13 1.3.8G KONG BULERATICII TILILJGHOUT

10 THE RECOTIATION.

MR. HILLS PAID TRILUTE TO THE ADVISERS WHO HAD MATERIALLY CONTRIBUTED TO A SUCCESSFUL OUTCCLE.

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