XN000022-1982-02-20 — Page 5

SATURDAY, FEBRUARY 20, 1982

FURTHER TALKS ON FRENCH TRADE RESTRICTIONS

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A FURTHER ROUND OF TALKS REGARDING THE RESTRICTIONS MAINTAINED BY FRANCE ON IMPORTS FROM HONG KONG IS LIKELY TO BE HELD IN HONG KONG IN MID-APRIL.

THIS WAS ANNOUNCED TODAY (SATURDAY) BY THE COMMISSIONER OF TRADE, MR LAWRENCE MILLS, ON HIS RETURN TO HONG KONG FROM EUROPE.

+WE HELD TWO ROUNDS OF CONSULTATIONS UNDER ARTICLE XXIII OF THE GENERAL AGREEMENT OF TARIFFS AND TRADE WITH THE EUROPEAN COMMISSION AND FRENCH OFFICIALS IN GENEVA AND PARIS, HE SAID.

+AS A CONSEQUENCE, THE FRENCH HAVE AGREED TO LIFT THE QUOTA ENTIRELY ON ONE SMALL ITEM (SOYA SPROUTS), AND TO USE THE QUOTA SYSTEM ON FOUR OTHER GROUPS OF PRODUCTS PARTS FOR TOYS, PLEASURE BOATS, OPTICAL MICROSCOPES AND SPARE PARTS FOR RADIO RECEIVERS SOLELY FOR SURVEILLANCE PURPOSES. IN OTHER WORDS, IMPORT LICENCES WILL BE FREELY ISSUED FOR THESE PRODUCTS. THE QUOTAS ON SOME KNITWEAR HAVE BEEN DOUBLED AND THOSE ON CERTAIN OTHER CLOTHING INCREASED BY 50 PER CENT. THE GARMENTS CONCERNED IN EACH CASE ARE MADE OF MATERIALS NOT COVERED BY THE MFA. THIS SHOULD PROVIDE SOME ALLEVIATION FOR OUR SILK GARMENT INDUSTRY, MR MILLS SAID.

+HOWEVER, ON WHAT WE MIGHT CALL THE HARD CORE ITEMS, CONSIDERABLE DIFFICULTIES REMAIN AND WE SHALL HAVE TO CONSIDER THESE FURTHER. NONETHELESS, THE FRENCH HAVE INCREASED THE QUOTA FOR RADIOS BY ABOUT FIVE PER CENT TO 180000 PIECES WHILST THE QUOTA FOR TOYS HAS BEEN INCREASED FROM THE PUBLISHED FIGURE OF 15 MILLION FRENCH FRANCS TO 22 MILLION FRENCH FRANCS,+ MR MILLS SAID,

+AS WE ANTICIPATED, THE MOST DIFFICULT AREA WAS QUARTZ WATCHES. THE FRENCH WERE NOT ABLE TO CHANGE OR REMOVE THE QUOTA AT THIS STAGE BUT WERE PREPARED TO DISCUSS THE QUESTION FURTHER. WE HAVE AGREED TO DO THIS, MR MILLS ADDED.

+HONG KONG'S OBJECTIVE IN THESE TALKS WAS TO PERSUADE THE FRENCH TO LIFT THE RESTRICTIONS ON IMPORTS FROM HONG KONG ALTOGETHER, MR MILLS SAID. +WE DID NOT SUCCEED, BUT THE FRENCH HAVE TAKEN SOME STEPS IN THE RIGHT DIRECTION AND THIS LEADS US TO THINK THAT A FURTHER ROUND OF TALKS WOULD BE USEFUL. WE HAVE THEREFORE TENTATIVELY SCHEDULED A FURTHER ROUND OF ARTICLE XXIII CONSULTATIONS FOR MID-APRIL IN HONG KONG.+

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