XN000022-1974-05-24 — Page 2

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FRIDAY, MAY 24, 1974.

NEW TEXTILE AGREEMENT WITH U.S. CONTAINS SUBSTANTIAL

IKPROVEMENTS

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SUBSTANTIAL IMPROVEMENTS TO EXISTING ARRANGEMENTS COVERING EXPORTS OF HONG KONG TEXTILES TO THE UNITED STATES ARE CONTAINED IN A NEW THREE-YEAR AGREEMENT WHICH COKES INTO EFFECT ON OCTOBER 1 THIS YEAR.

AFTER CONSIDERING THE TERMS OF THE AGREEMENT, THE TEXTILES ADVISORY BOARD HAS RECOMMENDED THAT IT SHOULD BE ACCEPTED BY THE HONG KONG GOVERNMENT.

THE AGREEMENT, DETAILS OF WHICH WERE ANNOUNCED TODAY, WAS NEGOTIATED IN WASHINGTON WITH THE UNITED STATES GOVERNMENT BY A HONG KONG DELEGATION LED BY MR. LAWRENCE HILLS, DEPUTY DIRECTOR OF THE COMMERCE AND INDUSTRY DEPARTMENT.

MR. MILLS SAID THAT THE AGREEMENT PROVIDES A COMPREHENSIVE AND INTER-LINKING ARRANGEMENT GOVERNING THE EXPORT OF HONG KONG- MADE COTTON, MAN-MADE FIBRE AND WOOL TEXTILES TO THE U.S.

THE NEW AGGREGATE LIMIT HAS BEEN AGREED AT APPROXIMATELY 835 MILLION EQUIVALENT SQUARE YARDS, AND THIS WILL INCREASE BY JUST OVER SIX PER CENT ANNUALLY TO REACH 943 MILLION EQUIVALENT SQUARE YARDS BY THE END OF SEPTEMBER, 1977 WHEN THE AGREEMENT EXPIRES.

IN COMPARISON, THE ACGREGATE LIMITS LAID DOWN UNDER THE EXISTING TEXTILE AGREEMENT WITH THE U.S. AMOUNT TO 792 MILLION EQUIVALENT SQUARE YARDS.

THE ACREEMENT RELATES TO FOUR GROUPS OF TEXTILE PRODUCTS YARNS AND FAURICS, GARMENTS, HADE-UPS AND MISCELLANEOUS ITEMS, AID WOOL PRODUCTS.

MR. WILLS SAID THAT, WITHIN THE YARNS AND FABRICS AND APPAREL GROUPS, CERTAȚI! PARTICULARLY SENSITIVE 110S HAVE BELJ GIVEN SPECIFIC LIMITS. EUT FOR THE OTHER ITNIS THERE IS FUL. INTER-FIBRE FLEXIBILITY SO THAT CO.:PACIES (AN USE THEIR QUOTA FU. PRODUCTS EITHER OF COTION CI HAITIDE FILE, DOPE SANG ON THE PATTERN OF DEMAND. THIS FULL INFIORE ILEXIBILITY IS LOT POSSIBLE AT PRECENT LECAUSE COTTON; AND (ZAN-TRADE FIERA TEXTILES AND SUBJECT TO DIFFERENT SETS OF ARRALGERENTS.

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OTHER FLEXIDELITY PROVISIONS IN TI,E EXISTING ARDANCEMENTS HAVE DEL INCORPORATED INTO THE NEU AVIELALIM AND 111. ROVED UPON. THE JIGA MANGLES UKEREDY YARDAGE LI OLE IRODUCT AREA CAN DE UCED FOR THE SHIPIENT OF GOODS IN ANOTHER PRODUCT AREA - HAVE BEEN ILCREASED SUBSTANCIALLY.

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THE ABILITY TO CARRY UNUSED YANDACE FROM ONE YEAR INTO THE NEXT HAS DEEN CONTINUED AND A DEO FEATURE OF THE AGREEMENT IS THAT IT IS FOUILLE TO BO..20U YARDAGE FRUB THE FOLLOWING YEAR'S LIMITS, IF DELAND REQUIRES THIS.

THERE HAS