XN000022-1980-07-16 — Page 3

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WEDNESDAY, JULY 16, 1980

REVIEW OF THE TEXTILES EXPORT CONTROL SYSTEM

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DETAILS OF A MODIFIED TEXTILE QUOTA SYSTEM WERE ANNOUNCED TODAY (WEDNESDAY) BY THE ACTING DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, MR PETER TSAO.

THE MODIFICATIONS RELATE TO THE PRINCIPLES GOVERNING ALLOCATION OF QUOTAS, THE QUOTA TRANSFER SYSTEM AND THE FREE QUOTA SCHEMES.

THERE WILL ALSO BE A NEW SCHEME TO GIVE SOME RECOGNITION TO THOSE COMPANIES WHICH RELY ON TRANSFERRING IN QUOTA TO SUSTAIN THEIR BUSINESS.

THE MODIFICATIONS REPRESENT THE CULMINATION OF A FIVE-MONTH REVIEW OF THE QUOTA SYSTEM UNDERTAKEN EARLIER THIS YEAR BY A REVIEW COMMITTEE COMPOSED OF MEMBERS OF THE STANDING COMMITTEE OF THE TEXTILES ADVISORY BOARD.

THE NEW SYSTEM, WHICH HAD BEEN ACCEPTED IN PRINCIPLE BY THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS ON THE ADVICE OF THE TEXTILES ADVISORY BOARD, WERE ENDORSED BY THE EXECUTIVE COUNCIL YESTERDAY (TUESDAY).

+THIS IS THE SECOND MAJOR REVIEW OF THE QUOTA SYSTEM, + SAID MR TSAO.

THE LAST WAS CONDUCTED IN 1976.

+THESE PERIODIC REVIEWS ADE NECESSARY TO ENSURE THAT THE QUOTA SYSTEM CONTINUES TO ENABLE HONG KONG TO DISCHARGE FULLY ITS INTERNATIONAL OBLIGATIONS, AND AT THE SAME TIME TO ENSURE OPTIMUM UTILISATION OF THE RESTRAINT LIMITS.

+ALTHOUGH THE REVIEW WAS UNDERTAKEN BY THE REVIEW COMMITTEE, THE MAJOR TRADE AND INDUSTRIAL ASSOCIATIONS AND SOME MEMBERS OF THE TEXTILES TRADE AND INDUSTRY ALSO CONTRIBUTED BY MAKING COMMENTS AND SUGGESTIONS AT THE START OF THE REVIEW. THEIR SUGGESTIONS WERE CAREFULLY CONSIDERED AND A NUMBER OF THEM HAVE BEEN INCORPORATED

INTO THE MODIFIED SYSTEM.

+WE INTEND TO CONDUCT ANOTHER REVIEW OF THE SYSTEM IN ABOUT THREE YEARS, HE SAID.

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