FRIDAY, JULY 29, 1977
NEW HK-US TEXTILE AGREEMENT
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THE COMMERCE AND INDUSTRY DEPARTMENT HAS REVEALED THE MAIN TERMS OF THE NEW HK-US TEXTILE AGREEMENT WHICH IS EXPECTED TO BE FORMALLY SIGNED SOON.
A SPOKESMAN FOR THE DEPARTMENT SAID TODAY THAT WHILE SOME MINOR POINTS OF WORDING HAD STILL TO BE RESOLVED BEFORE THE AGREEMENT COULD BE FORMALLY SIGNED, THE SUBSTANCE OF THE AGREEMENT WAS NOT GOING TO BE CHANGED,
+ IN THE INTEREST OF THE TRADE WHICH HAS TO PLAN ITS PRODUCTION AND SALES SEVERAL MONTHS AHEAD, THE DEPARTMENT FEELS THAT IT IS NOW NECESSARY TO LET PEOPLE KNOW WHAT TO EXPECT, THE SPOKESMAN SAID.
COMMENTING ON THE AGREEMENT, THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, MR. BILL DORWARD, SAID: *WE ARE NEVER HAPPY TO. ENTER INTO AGREEMENTS TO RESTRAIN OUR TEXTILE EXPORTS. THIS ONE IS NO EXCEPTION.+
MR. DORWARD NOTED THAT THE TERMS OF THE NEW AGREEMENT WERE MORE RESTRICTIVE THAN THOSE IN THE CURRENT ONE.
THIS IS ESPECIALLY SO IN REGARD TO GROWTH, WHERE ANNUAL INCREASES IN QUOTAS ARE CURRENTLY 6.25 PER CENT.
FOR THE FIRST YEAR OF THE NEW AGREEMENT THE AGGREGATE LIMIT WILL BE 958 MILLION SQUARE YARDS, ONLY 1.5 PER CENT HIGHER THAN THE LIMIT FOR THE LAST YEAR OF THE CURRENT AGREEMENT.
FOR THE LAST FOUR YEARS OF THE FIVE-YEAR AGREEMENT, THE
OVERALL ANNUAL GROWTH RATE WILL BE 6 PER CENT.
+ IT MUST BE REMEMBERED, OF COURSE, THAT THESE ARE COMPOUND GROWTH RATES AND ON A BASE ALREADY APPROACHING ONE BILLION SQUARE YARDS A YEAR+, MR. DORWARD SAID.
+BUT THE BITE COMES IN SOME OF THE CATEGORIES IN GREATEST DEMAND, WHERE THE ANNUAL GROWTH WILL BE ONLY 3 PER CENT, OR EVEN LESS IN THE CASE OF WOOLLEN ITEMS.+
THE 3 PER CENT GROWTH RATE WILL APPLY TO SUCH CATEGORIES AS T-SHIRTS, OTHER KNIT SHIRTS, WOVEN SHIRTS AND BLOUSES, LADIES' WOVEN TROUSERS AND NIGHTWEAR.
THERE ARE, HOWEVER, SOME IMPROVEMENTS. IN PARTICULAR, THE EXTENT TO WHICH HONG KONG MAY CARRY FORWARD QUOTAS (1.E. BORROW IN ONE YEAR FROM THE FOLLOWING YEAR'S QUOTA WHEN DEMAND IS STRONG) HAS BEEN INCREASED FROM 6 TO 7.15 PER CENT.
+AND THERE ARE OTHER TECHNICAL ADJUSTMENTS HERE AND THERE, SUCH AS THE MERGING OF CERTAIN CATEGORIES, WHICH WILL ADD UP IN TERMS OF DOLLARS AND CENTS+, MR. DORWARD SAID,
+WE HAVE ACCEPTED THESE TERMS BECAUSE WE WERE FACED WITH AN INFLEXIBLE US POSITION AND THERE WAS A REAL NEED TO REMOVE UNCERTAINTIES AND PROVIDE THE TRADE WITH A STABLE BASIS ON WHICH TO PLAN FORWARD+, MR. DORWARD ADDED.
/+THE NEGOTIATIO