XN000022-1994-12-09 — Page 19

17.

"Exactly how our trade will be affected will depend on the final detailed rules. In the coming months, we will be monitoring developments in the US very closely. We will consult our industry advisors and would welcome views from the trade."

Mr Yiu said: "We had a useful meeting this morning. The two sides discussed the terms of notification to be made by Hong Kong and the US to the Textiles Monitoring Body (TMB) of the World Trade Organisation (WTO), on administrative arrangements necessary for the implementation of US restraints on Hong Kong's textile exports."

Article 2 of the WTO Agreement on Textiles and Clothing (ATC) requires notification to the TMB of quantitative restrictions and administrative arrangements necessary for the implementation of such restrictions upon the entry into force of the ATC.

According to present plans, the ATC will come into force together with the WTO on January 1 next year.

During the meeting, Trade Department officials also formally raised objection to the US notification to convert Cat 834 (men's and boys' coats and jackets of silk- blend or non-cotton vegetable fibre) into a Specified Limit starting next year.

"The US called us on the item in May, and without our agreement imposed a limit of 10,500 dozens for 1994," Mr Yiu said.

"We told them then that the call was unjustified, and we told them today that the conversion of the item into a Specified Limit is equally unjustified," he added.

Under the Hong Kong/US Textiles Bilateral, the US may under certain specified conditions ask Hong Kong to limit exports of the relevant products for that

year.

In respect of such a product for which a limit has been established, the US may elect to convert the limit into a Specified Limit with effect from the immediately following year.

Mr Yiu said the two sides also discussed matters related to further co-operation in combating illegal textile transhipment.

"We reiterated our determination in combating illegal transhipment on our own and in co-operation with other authorities, in line with our international obligations and domestic laws," he said.

End/Friday, December 9, 1994