XN000022-1973-09-19 — Page 2

Wednesday, September 19, 1973

EXPORT OF TEXTILES TO THE EEC

Hong Kong is to extend for six months, up to the end of June 1974,

the various current restraints on exports of textiles to the countries of the European Economic Community.

Announcing this today, a spokesman for the Commerce and Industry

Department said that this action, which has been taken on the advice of

the Textiles Advisory Board, is unilateral. No negotiations have been

held with the countries concerned.

The reason for this unusual step, the spokesman explained, is that

the existing arrangements are all due to expire on December 31, 1973, and

in the present international situation it would be impractical to try to

conclude a new bilateral agreement with the EEC.

This is because the international rules under which such an agreement

would have to be negotiated are still themselves the subject of negotiation

in the forum of the General Agreement on Tariffs and Trade (GATT).

The so-called Cotton Textiles Arrangement, under which many of

Hong Kong's textile restraint agreements have been negotiated, has been

extended only to the end of 1973.

Negotiations to replace it with a new set of rules, in which Hong Kong

will continue to play an active role, are to be held in Geneva later this year.

The Commerce