XN000022-1972-05-06 — Page 8

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H.K. MAN-MADE FIBRE KNIT FABRICS

EMBARGO IMPOSED BY U.S.

Saturday, May 6, 1972.

The United States Government has imposed an embargo on imports

from Hong Kong of man-made fibre knit fabrics.

Indirect reports received by the Commerce and Industry

Department indicate that the embargo was imposed from midnight

Washington time on Friday, May 5.

"It affects goods on the way and those still awaiting clearance

from Customs warehouses in the United States," a Department spokesman said.

Commenting on the situation, the Director of Commerce and Industry,

Mr. Jack Cater, said he deplored the disruptive nature of the Anorican

action.

"I am particularly dismayed," Mr. Cater said, "because the

embargo has been suddenly imposed despite the fact that we actually have

a team in Washington discussing a technical problem concerning the

trade in these fabrics. The consultations are still continuing and I

find it very disturbing that the U.S. Government should have resorted to

such tactics.

Man-made fibre knit fabrics have been subject to export

restraint since Optober 1971. A Commerce and Industry Department

spokesman said the volume of trade involved in the disputed area is

roughly 7.5 million square yards, or about 3.5 per cent of expected total

Hong Kong fabrio exports to the United States in the current year.

The Commerce and Industry Department is seeking full details of

the American action and will inform the trade as soon as possible.

Release time: 3.00 p.m.