WEDNESDAY, DECEMBER 14, 1977
TEXTILE TALKS BETWEEN HK, NORWAY AND SWEDEN SUSPENDED
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THE
THE DIRECTOR OF TRADE, MR. LAWRENCE MILLS, SAID TODAY THAT THE TEXTILE NEGOTIATIONS BETWEEN TWO HONG KONG TEAMS AND DELEGATIONS FROM NORWAY AND SWEDEN HAVE BEEN SUSPENDED. NEGOTIATIONS WERE CONCERNED WITH THE FUTURE OF THE CURRENT TEXTILE AGREEMENTS WHICH EXPIRE ON DECEMBER 31 OF THIS YEAR.
+THIS SUSPENSION HAS COME ABOUT BECAUSE THE NORWEGIAN AND SWEDISH DELEGATIONS WERE DEMAND ING LARGE REDUCTIONS - IN ONE CASE BY 76 PER CENT - ON CURRENT RESTRAINT AND TRADE LEVELS FOR 1978. THE AVERAGE REDUCTIONS THEY ARE SEEKING VARY BETWEEN 20 PER CENT AND 40 PER CENT,+ MR. MILLS SAID.
MR. MILLS EXPLAINED THAT THE MFA DOES NOT PROVIDE FOR REDUCTIONS IN RESTRAINT LEVELS AND ALTHOUGH THE GENEVA DOCUMENT AGREED IN JULY OF THIS YEAR PROVIDES FOR REASONABLE DEPARTURES FROM PARTICULAR ELEMENTS OF THE MFA IN PARTICULAR CASES, THE NORWEGIAN AND SWEDISH DEMANDS ARE SO FAR FROM REASONABLE AS TO MAKE ANY PROGRESS IN THE NEGOTIATIONS IMPOSSIBLE AT THIS STAGE+.
+PREVIOUS NEGOTIATIONS BETWEEN HONG KONG AND NORWAY AND SWEDEN HAVE ALWAYS BEEN HELD IN A SPIRIT OF EQUITY WITH GIVE AND TAKE ON BOTH SIDES BUT THE PRINCIPLES OF THE MFA HAVE ALWAYS BEEN STRICTLY ADHERED TO+, MR. MILLS ADDED.
+I AM THEREFORE EXTREMELY SORRY TO SEE OUR TRADING PARTNERS IN SCANDINAVIA ASKING FOR SUCH EXTREMELY PROTECTIONIST MEASURES+.
+AS THINGS NOW STAND, THE POSSIBILITY OF UNILATERAL IMPORT MEASURES BY NORWAY AND SWEDEN CANNOT BE RULED OUT+, MR. MILLS SAID.
+WE JUST CANNOT AGREE TO NEGOTIATE RESTRAINTS BELOW CURRENT LEVELS OF TRADE WHICH WOULD SET PRECEDENTS FAR WORSE THAN THE RECENTLY CONCLUDED HONG KONG/EEC TEXTILE AGREEMENT.+
THE TEXTILES ADVISORY BOARD HAS BEEN KEPT FULLY INFORMED OF THE SITUATION. IT HAS ADVISED THE GOVERNMENT THAT HONG KONG SHOULD NOT CONSIDER NEGOTIATING WITH NORWAY AND SWEDEN ON THE BASIS OF THESE REQUESTED REDUCTIONS,
+WE HAVE PROPOSED BOTH TO NORWAY AND TO SWEDEN A TEMPORARY THREE MONTH EXTENSION OF THE CURRENT ARRANGEMENTS IN AN EFFORT TO MINIMISE DISRUPTION TO THE TRADE AND TO GIVE THE TWO NORDIC COUNTRIES A PERIOD FOR FURTHER REFLECTION UPON THE IMPLICATIONS OF UNILATERAL ACTION ON THEIR PART NOT JUST IN THE CONTEXT OF TEXTILES BUT IN RESPECT OF WORLD TRADE AS A WHOLE.
+WE HAVE ALSO MADE CLEAR THAT THE TWO HONG KONG TEAMS ARE READY TO RESUME NEGOTIATIONS WITH NORWAY AND SWEDEN AT ANY TIME EITHER IN HONG KONG OR IN EUROPE+, MR. MILLS EMPHASISED.
THE NORWEGIAN DELEGATION LEFT HONG KONG THIS EVENING TO CONTINUE NEGOTIATIONS WITH OTHER SUPPLIERS IN THE REGION. THE SWEDISH DELEGATION IS EXPECTED TO LEAVE AT THE END OF THE WEEK.
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