XN000022-1972-05-13 — Page 11

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Saturday, May 13, 1972

U.S. TRADE EMBARGO ON FABRICS

Statement By Commerce And Industry Department

*****REA

The statement by a U.S. Consular official on the U.S. trade

embargo on certain fabrics, which was printed in yesterday's South China Morning Post, contains certain inaccuracies and omissions.

This was stated by a spokesman for the Commerce and Industry

Department.

"We would not normally choose to try to argue such a technical problem in public. Our previous press statement on this subject was made simply in response to the U.S. announcement of the imposition of an embargo. But although the consultations in Washington have not yet been completed, we feel it is necessary to set the record straight at this time."

The U.S. Consultate spokesman maintained that Hong Kong had never sought or obtained mutual agreement for the method by which it controlled and reported exports of the fabrics in question. He also said the need for this precondition was recognised by both sides and was the basis on

which the cotton agreement was already operating.

The Commerce and Industry Department denies the accuracy of this statement. During the six years the cotton agreement had been operating no such mutual agreements had been sought or required. And it had been explicitly agreed between the two sides in October 1971 that the same practices would be applied to the new man-made fibre restraints as had been applied under the

cotton agreement.

/"Contrary