XN000022-1982-04-20 — Page 5

TUESDAY, APRIL 20, 1982

HK/EEC TEXTILE TALKS RECESSED

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THE CURRENT TALKS BETWEEN HONG KONG AND EEC COMMISSION OFFICIALS ON THE FUTURE OF THE HK/EEC TEXTILE RESTRAINT AGREEMENT HAD BEEN RECESSED, MR LAWRENCE MILLS, COMMISSIONER OF TRADE SAID IN A PRESS STATEMENT ISSUED THIS AFTERNOON (TUESDAY).

+DURING THE COURSE OF THE DISCUSSIONS, WE EXCHANGED INFORMATION ON THE ISSUES WHICH EACH SIDE WOULD RAISE IN THE COMING NEGOTIATIONS, MR MILLS SAID.

*THE EEC IS SEEKING A VERY RESTRICTIVE ARRANGEMENT WITH HONG KONG INCLUDING REDUCTIONS OF 10 PER CENT IN FIVE IMPORTANT CATEGORIES FOR HONG KONG. THE FIVE CATEGORIES ARE 4 (KNITTED SHIRTS): 5 (KNITTED SWEATERS); 6 (WOVEN TROUSERS AND MEN'S SHORTS): 7 (WOVEN/KNITTED BLOUSES); AND 8 (MEN'S WOVEN SHIRTS).

+IN ADDITION THE EEC IS SEEKING EXTREMELY LOW GROWTH RATES WITH NO FLEXIBILITY IN SOME CATEGORIES AND MINIMAL FLEXIBILITY IN OTHERS.

+HONG KONG, ON THE OTHER HAND, IS LOOKING FOR GREATER EXPORT OPPORTUNITIES IN THE COMMUNITY AND SUFFICIENT FLEXIBILITY WITHIN ANY NEW AGREEMENT TO ALLOW IT TO FOLLOW MARKET TRENDS.

+OUR POSITIONS ARE DIAMETRICALLY OPPOSED,+ MR MILLS SA ID +AND THE NEGOTIATIONS WHICH ARE SCHEDULED TO BEGIN IN BRUSSELS ON JUNE 1, WILL BE VERY DIFFICULT INDEED.+

LICENSING SYSTEM FOR ARGENTINA IMPORT BAN

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THE IMPORT PROHIBITION (ARGENTINA) (NO. 2) REGULATIONS 1982 IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY AND COME INTO IMMEDIATE EFFECT.

THESE NEW REGULATIONS MODIFY THE SCOPE OF THE BAN INTRODUCED LAST TUESDAY (APRIL 13):

(A) BY EXTENDING THE BAN TO GOODS FROM ARGENTINA EXPORTED

TO HONG KONG VIA THIRD COUNTRIES- AND

(B) BY ENABLING GOODS FROM ARGENTINA THAT WERE ALREADY ON

THE WAY TO HONG KONG BEFORE APRIL 13 TO BE EXCLUDED FROM THE BAN.

TO GIVE