XN000022-1984-11-01 — Page 3

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THURSDAY, NOVEMBER 1, 1984

BUT HE ADDED THE U.S. HAD GIVEN ASSURANCES THAT THE VIEWS EXPRESSED BY HONG KONG WOULD BE TAKEN INTO ACCOUNT BOTH IN THE 'TECHNICAL REVIEW' TO BE CARRIED OUT BY THE U.S. CUSTOMS IN THE LIGHT OF COMMENTS RECEIVED, AND IN AN ASSOCIATED HIGH LEVEL +POLICY REVIEW+.

HE SAID THAT THE DELEGATION HAD ALSO DISCUSSED SOME PARTICULAR SHIPMENTS, BOTH AS OF INTEREST IN THEMSELVES AND AS ILLUSTRATIONS OF SOME OF THE HONG KONG ARGUMENTS.

+WE SOUGHT AND RECEIVED CONFIRMATION OF THE RULINGS ON THREE SHIPMENTS WHICH HAD BEEN REFUSED ENTRY UNDER THE NEW RULES, AND THE U.S. DECLINED TO RELEASE THEM.

+AS WE WERE NOT SATISFIED WITH THE U.S. RESPONSES EITHER TO OUR GENERAL ARGUMENTS OR TO THE PARTICULAR SHIPMENT CASES, WE ADVISED THEM THAT WE WOULD NOW HAVE TO GIVE SERIOUS CONSIDERATION TO PURSUING OUR VIEWS IN TWO OTHER AVENUES, NAMELY TAKING THE SHIPMENT CASES TO THE TEXTILES SURVEILLANCE BODY (TSB), AND PRESSING OUR GATT RIGHTS IN VIEW OF THE NULLIFICATION AND IMPAIRMENT TO OUR TRADE. WHILE THE REVIEW MAY WELL PRODUCE SOME IMPROVEMENT IN THE REGULATIONS OR EVEN THEIR WITHDRAWAL, IT MAY WELL TAKE SOME TIME, AND WE CANNOT AFFORD TO WAIT, MR MACLEOD EMPHASISED.

THE REGULATIONS WERE ANNOUNCED ON AUGUST 3 AND VARIOUS U.S. GOVERNMENT AGENCIES ARE REVIEWING THEM IN THE LIGHT OF SEVERE CRITICISMS BY EXPORTING COUNTRIES AS WELL AS GROUPS OF AMERICAN IMPORTERS AND RETAILERS,

THE BILATERAL CONSULTATIONS BETWEEN THE UNITED STATES AND HONG KONG TOOK PLACE IMMEDIATELY AFTER THE TEXTILES COMMITTEE MEETING OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE HELD IN GENEVA ON OCTOBER 17 AND 22 DURING WHICH THE AMERICAN DELEGATION HEARD YET ANOTHER UNANIMOUS CHORUS OF CRITICAL COMMENTS CONDEMNING THE IMPORT REGULATIONS.

MR MACLEOD EXPLAINED THAT THE IMMEDIATE AIM OF THE BILATERAL CONSULTATIONS JUST COMPLETED WAS THREEFOLD:

* FIRST, TO SEEK A RESPONSE FROM THE U.S. TO HONG KONG'S

ARGUMENTS AGAINST THE REGULATIONS,

*

SECOND, TO CLARIFY DISCREPANCIES IN THE ANSWERS GIVEN BY THE U.S. CUSTOMS ON THE APPLICATION OF THESE REGULATIONS, AND

* THIRD, TO ASK FOR THE RELEASE OF SEVERAL SHIPMENTS

ALREADY HELD UP BY U.S. CUSTOMS ON GROUNDS OF THE

NEW REGULATIONS.

A TRADE DEPARTMENT SPOKESMAN IN HONG KONG ALSO ANNOUNCED THAT RENEWED CONSULTATIONS IN WASHINGTON ON OCTOBER 30 ON CATEGORY 652 (MAN-MADE FIBRE UNDERWEAR) HAD ENDED IN DISAGREEMENT.

/BE SAID: