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WEDNESDAY, MAY 17, 1978
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HONG KONG REPRESENTATIONS TO THE GATT ON TEXTILES ******
THE HONG KONG GOVERNMENT HAS REFERRED THE PROBLEM OF NORWAY'S IMPORT RESTRICTIONS ON HONG KONG TEXTILES TO THE GATT.
THE DIRECTOR OF TRADE, MR. LAWRENCE MILLS, SAID TODAY THAT THE MATTER WOULD BE RAISED AT THE GATT COUNCIL MEETING TO BE HELD TODAY (MAY 17) WITH THE REQUEST THAT THE MATTER BE INVESTIGATED BY THE CONTRACTING PARTIES.
HE SAID: THE BULK OF HONG KONG'S TEXTILE EXPORTS TO NORWAY UP TO DECEMBER 1977 WAS COVERED BY BILATERAL AGREEMENTS BETWEEN HONG KONG AND NORWAY MADE UNDER THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES (MFA).
+WHEN HONG KONG AND NORWAY MET IN DECEMBER 1977 TO CONSULT ON FUTURE ARRANGEMENTS REGARDING THIS TRADE, NORWAY ASKED FOR 40 PER CENT REDUCTION OF IMPORTS FROM HONG KONG BASED ON 1976 LEVELS. THE TWO SIDES WERE UNABLE TO REACH AGREEMENT THEN.
+ IN JANUARY THIS YEAR, NORWAY INTRODUCED UNILATERAL IMPORT
· RESTRICTIONS ON A WIDE RANGE OF TEXTILE PRODUCTS FROM HONG KONG. THESE MEASURES ARE DISCRIMINATORY AGAINST HONG KONG AND CONTRARY TO THE PROVISIONS OF THE GATT, MR. MILLS SAID.
COMMENTING ON HONG KONG'S REFERENCE OF THE MATTER TO THE GATT COUNCIL, MR. MILLS SAID THAT THE ACTION WAS REGRETTABLY UNAVOIDABLE. HONG KONG HAD, PRIOR TO NORWAY'S IMPOSITION OF IMPORT RESTRICTIONS, OFFERED TO VOLUNTARILY RESTRAIN TEXTILE EXPORTS FOR THREE MONTHS BEGINNING JANUARY 1978 TO ALLOW THE NORWEGIAN AUTHORITY TO REFLECT ON ITS FUTURE COURSE OF ACTION AND WITH A VIEW TO AVOIDING HARDSHIP TO THE COMMERCIAL PARTICIPANTS IN THE TRADE IN NORWAY AND IN HONG KONG. AFTER NORWAY INTRODUCED ITS IMPORT RESTRICTIONS, HONG KONG REQUESTED FURTHER CONSULTATIONS UNDER ARTICLE XXII OF THE GATT IN AN ATTEMPT TO REACH A MUTUALLY ACCEPTABLE AGREEMENT. BUT CONSULTATIONS EVENTUALLY HELD IN EARLY MAY INDICATED THAT NORWAY COULD NOT MOVE FROM THE POSITION IT ADOPTED IN DECEMBER 1977.
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