XN000022-1995-08-20 — Page 2

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Delegation for textiles consultations with the US

A Trade Department delegation, led by Assistant Director-General of Trade, Mr Stanley Ying, left today (Sunday) for consultations with the United States to be held on August 22 and 23 in Washington DC.

The consultations will cover three main issues:

Firstly, the two sides will continue discussions on the US unilateral action to impose import control on Hong Kong's textiles and clothing products.

* Secondly, the two sides will try to reach agreement on a set of arrangements

necessary to the administration of US quantitative restraints on textiles and clothing imports from Hong Kong, for notification to the World Trade Organisation (WTO) under the WTO Agreement on Textiles and Clothing (ATC).

*Thirdly, Hong Kong will continue to demand the US to withdraw its call on

Hong Kong's Category 440 imports (woven wool shirts and blouses).

"A first round of consultations with the US was held in June when we asked the US to revoke its decision to place Hong Kong's textiles and clothing products under import control, or at least suspend implementation until a mutually satisfactory solution is reached," said Mr Ying prior to departure.

"We are still awaiting a formal response," he added.

It has been the established practice for the past three decades that Hong Kong's textiles and clothing exports to the US are subject to export control by Hong Kong, as opposed to import control by the US.

One main difference between the two approaches is that under export control, Hong Kong's export data is used for quota control and accounting purposes; whereas under import control US uses its import data.

Mr Ying said: "Implementation of import control could have adverse implications for the trade. The drastic change in itself could bring uncertainty and disruption.