THURSDAY, AUGUST 6, 1981

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TEXTILE AGREEMENT WITH CANADA ****

THE CURRENT TEXTILE AGREEMENT BETWEEN CANADA AND HONG KONG IS DUE TO EXPIRE ON DECEMBER 31, 1981. IT PROVIDES FOR EXPORT RESTRAINT ON 25 CLOTHING AND MADE-UP ITEMS.

FOLLOWING NEGOTIATIONS IN GENEVA BETWEEN CANADA AND HONG KONG, AND AD REFERENDUM AGREEMENT WAS REACHED ON JULY 22, WHICH PROVIDES FOR THE CONTINUATION OF THE PRESENT AGREEMENT, WITH CERTAIN CHANGES.

THE NEW AGREEMENT IS FOR A PERIOD OF ONE YEAR COMMENCING JANUARY 1, 1982. WHILE THE COVERAGE OF THE NEW AGREEMENT IS THE SAME AS THAT IN THE PRESENT AGREEMENT, A NEW CATEGORISATION SYSTEM, WHICH PROVIDES FOR THE GROUPING OF SOME EXISTING CATEGORIES, HAS BEEN INTRODUCED.

IN THE NEW AGREEMENT, NINE ITEMS WILL BE REMOVED FROM EXPORT RESTRAINT AND PLACED UNDER EXPORT AUTHORISATION.

THEY ARE WINTER OUTERWEAR GARMENTS- SUITS, WOMEN'S, GIRLS'- CO-ORDINATES AND OUTERWEAR SETS, MEN'S, BOYS', WOMEN'S, GIRLS' CHILDREN'S AND INFANTS' WEAR EXCEPT TROUSERS, SHORTS, OVERALLS, COVERALLS, DRESSES AND SKIRTS- UNSTRUCTURED SUITS AND BLAZERS, MEN'S, BOYS' JACKETS, PROFESSIONAL AND SHOP COATS- OVERCOATS, TOPCOATS AND RAINWEAR BATHROBES, DRESSING GOWNS AND HOUSECOATS, MEN'S, BOYS', WOMEN'S, GIRLS' BEDSHEETS AND COTTON TERRY TOWELS.

RESTRAINT WILL CONTINUE TO BE EXERCISED ON THE OTHER ITEMS AT PRESENT UNDER EXPORT RESTRAINT. THE STATUS OF ITEMS CURRENTLY SUBJECT TO EXPORT AUTHORISATION WILL ASLO REMAIN UNCHANGED.

THE TEXTILE ADVISORY BOARD HAS BEEN CONSULTED AND HAS ADVISED THAT HONG KONG SHOULD ACCEPT THE AGREEMENT.

SUBJECT TO ACCEPTANCE BY THE CANADIAN GOVERNMENT THE AGREEMENT IS EXPECTED TO BE SIGNED IN OCTOBER.

DETAILS AND THE RULES FOR IMPLEMENTATION WILL BE MADE KNOWN

SHORTLY.

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