XN000022-1974-09-29 — Page 2

1

SUNDAY, SEPTENDER 29, 1974

-

NEW GROWTH POTENTIAL, FOR TEXTILE EXPORTS

NEW GROWTH POTENTIAL FOR HONG KONG'S MULTI-MILLION DOLLAR TEXTILE EXPORTS HAS BEEN ACHIEVED UNDER SEPARATE TRADE AGREEMENTS WITH THE UNITED STATES AND CANADA.

BOTH AGREEMENTS COME INTO EFFECT ON OCTOBER 1 TO REPLACE EXISTING ARRANGEMENTS WHICH HAVE BEC!! RENEGOTIATED UNDER THE NEW ARRANGEMENT COVERING INTERNATIONAL TRADE IN TEXTILES.

—

HONG

THE NEW THREE-YEAR AGREEMENT WITH THE UNITED STATES KONG'S HAJOR HARKET FOR TEXTILES - PROVICES A COMPREHENSIVE AND INTER-LINKING ARRANGEMENT GOVERNING THE EXPORT OF HONG KONG IADE COTTON, MAN-MADE FIBRE AND COOL TEXTILES TO THE U.S.

THE AGGREGATE LIMIT HAS BEEN RAISED FROM 792 MILLION TO 835 MILLION EQUIVALENT SQUARE YARDS, AND THIS VILL INCREASE BY JUST OVER SIX PER CENT ANNUALLY TO REACH 943 MILLION EQUIVALENT SQUARE YARDS BY THE END OF SEPTEMBER, 1977, UHEN THE AGREEMENT EXPIRES.

THE AGREEMENT WITH THE U.S. RELATES TO FOUR GROUPS OF TEXTILE PRODUCTS YARN AND FABRICS, GARMENTS, IADE-UPS AND NISCELLANEOUS ITEMS, AND WOOL PRODUCTS.

=

WITHIN THE YARNS AND FABRICS AND APPAREL GROUPS CERTAIN PARTICULARLY SENSITIVE ITENS HAVE BEEN GIVEN SPECIFIC LIMITS.

BUT FOR THE OTHER ITEMS THERE IS FULL INTER-FIBRE FLEXIBILITY SO THAT COMPANIES CAN USE THEIR QUOTA FOR PRODUCTS EITHER OF COTTON OR MAN-MADE FIERE. DEPENDING ON THE PATTERN OF DEHAND.

THIS FULL INTER-FIBRE FLEXIBILITY IS NOT POSSIBLE UNDER EXISTING ARRANGEMENTS BECAUSE COTTON AND NAN-TADE FIERE TEXTILES ARE SUBJECT TO DIFFERENT SITS OF ARRANGEMENTS.

OTHER FLEXIBILITY PROVISIONS IN THE EXISTING ARRANGEMENTS HAVE BEEN INCORPORATED INTO THE NEW AGREEMENT AND PROVED UPON.

THE NEW AGREEMENT WITH CANADA WILL REKOVE VIRTUALLY ALL RESTRICTIONS ON HONG KONG'S TEXTILE EXPORTS. FROM CCTODER 1 EXISTING QUANTITATIVE RESTRAINTS WILL EE LIFTED ON COTTON YARN, COTTON TERRY TOVELS AND CERTAIN TYPES OF LOVE! CLOUSES AND TROUSERS.

THE SOLE REMAINING ITEM UNDER LIMITATION VILL DE KEN'S TAILORED SHIRTS. THIS RESTRAINT IS DUE TO EXPIRE ON MOVENDER 29, HOWEVER, AND IT IS HOPED THAT NO FURTHER QUANTITATIVE RESTRICTIONS WILL BE IMPOSED BEYOND THIS DATE.

IN PLACE OF EXISTING RESTRAINT ARRANGEMENTS, THE COMMERCE AND INDUSTRY DEPARTMENT WILL EXTEND ITS SURVEILLANCE MEASURES SO AS TO PROVIDE AN ACCURATE FORWARD PICTURE OF EXPORT TRENDS FOR BOTH THE CANADIAN AND HONG KONG GOVERNMENTS.

THE COM

THE COMMERCE AND INDUSTRY DEPARTMENT HAS BEEN INVOLVED IN A HEAVY SCHEDULE OF TRADE NEGOTIATIONS SINCE THE NEW ARRANGEMENT ON WORLD TRADE IN TEXTILES CAME INTO FORCE ON JANUARY 1 THIS YEAR.

NEW ARRANGEMENTS COVERING HONG KONG'S TEXTILE EXPORTS ARE ALREADY IN FORCE WITH SWEDEN, NORWAY, AUSTRALIA AND AUSTRIA. CONSULTATIONS WITH THE EUROPEAN ECONOMIC COMMUNITY HAVE YET TO TAKE PLACE.

12