XN000022-1996-06-14 — Page 5

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The requirements also provide that if a US textile production verification team is in Hong Kong, the consignment will be detained until the team verifies that production has actually taken place in Hong Kong.

"These measures will be disruptive to our trade," said the spokesman.

"We understand that the measures are intended to tackle illegal textiles transshipment. But they are objectionable because they are being taken in the absence of concrete evidence of illegal transhipment of such products in Hong Kong, and they affect both legitimate and illegitimate traders indiscriminately.

"We are disappointed that despite the established co-operative relationship between the two governments in our common efforts against illegal transshipment, the US should impose such discriminatory measures against Hong Kong unilaterally without any prior consultations, and without any prior discussions with the Hong Kong Government to seek to establish the facts about the perceived problems of transshipment in Hong Kong," he added.

The spokesman said that was why Hong Kong was requesting early consultations with the US.

"But, more immediately, we are concerned with the effects the measures may have on our consignments arriving in the US in two days' time. The relevant traders are unlikely to be able to meet the new requirements, and may therefore be adversely affected," he said.

"That is why we have asked the US to defer the implementation of the

measures."

The spokesman said the Trade Department had informed Hong Kong traders of the US measures. Should they require any additional information, they are welcome to contact the Department's Americas Division.

Last year, Hong Kong's exports of the five specific types of products to the US amounted to $3.5 billion, representing 9.6 per cent of its total textiles and clothing exports to the US, or about four percent of textiles and clothing exports to the world.

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