XN000022-1973-09-18 — Page 4

3.

Tuesday, September 18, 1973

HONG KONG/US TEXTILES AGREEMENT

Hong Kong has agreed to an extension for

one year from

October 1, 1973 of the current restraint arrangements for the export to

the United States of cotton textiles.

Announcing this, a spokesman for the Commerce and Industry

Department said that the formal extension, signed today, followed a series

of discussions in Geneva and Hong Kong.

He added that these resulted in agreement that, in addition to the

five per cent annual growth rate already prescribed in the agreement,

Hong Kong would be able to ship a further two per cent over the present limits.

This comes to nearly 10 million square yards equivalent and brings

the limit for the year ending September 30, 1974 to 510 million square

yards equivalent.

The spokesman added that, in addition, agreement had been reached on

certain technical modifications to the agreement to allow more flexible

administration. These should mean that Hong Kong exporters will be able

to utilise their quotas more effectively and profitably.

Although the extension is for one year, part of the terms of the

agreement prescribe that both sides will meet to review it within ninety

days of the conclusion of a new multilateral arrangement which is currently

under negotiation in Geneva.

These negotiations are expected to produce an international set of

rules to replace those in the so-called Cotton Textiles Arrangement, due to

expire at the end of this year. It was under the terms of that Arrangement

that the present Hong Kong/US cotton textiles restraint agreement was

negotiated in 1970.

14