XN000022-1996-08-29 — Page 6

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"We have further said that while such exchanges were in process, the US should not take action such as putting the products on a 'watch list'.

"We are in fact discussing with the US Customs arrangements for such exchange of data. We are disappointed that in the meantime, the US Customs have decided on this 'watch list' action."

The spokesman said the Government would continue to discuss with the US Customs arrangements for the two sides to exchange information and data on the four categories as soon as possible.

"We also hope that whatever concerns the US Customs may have regarding alleged illegal transhipment involving the four categories, through observing Hong Kong's systems against illegal transhipment under the 30-day joint visit programme, the US Customs will come to the conclusion that there is no need for any additional import measures on the four categories," the spokesman added.

The Government earlier announced that under invitation by the Customs and Excise Department, eight US Customs officers will come to Hong Kong for a 30-day programme to observe the territory's textiles export control systems in respect of the 10 categories on which the US Customs has applied additional import measures since June 17.

During the programme, the US Customs and Hong Kong Customs officers will jointly visit factories that consent to such visits. Hong Kong has extended the invitation as part of its effort to persuade the US Customs that such extra measures imposed on the 10 categories are unnecessary.

Last year, Hong Kong's exports to the US of the four categories to be put on the US Customs" "watch list" were $6.7 billion, or 18% of Hong Kong's total textiles and clothing exports to the US.

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