CONFIDENTIAL
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4. THE HONG KONG GOVERNMENT IS NOT PREPARED TO ENTER INTO NEGOT-
IATIONS FOR A COMPREHENSIVE BILATERAL AGREEMENT ON HONG KONG'S
EXPORTS TO THE USA OF MAN-MADE AND WOOLLEN FIBRE TEXTILES,
IT SEES NO GOOD GROUNDS FOR THE DEROGATION FROM ITS GATT RIGHTS
THAT WOULD BE IMPLIED BY ACCEPTANCE OF THIS PROPOSAL..
5. HONG KONG HAS NOT ENTERED INTO A COMPREHENSIVE BILATERAL
AGREEMENT SUCH AS IS NOW PROPOSED WITH ANY OTHER COUNTRY.
ITS ONLY COMPREHENSIVE AGREEMENTS WERE MADE IN THE CONTEXT OF
THE CTA, WHICH THE PARTICIPATING COUNTRIES AGREED WAS INTENDED TO
DEAL WITH THE UNIQUE PROBLEMS OF UNDERLINE NEXT WORD COTTON
TEXTILES AND NOT TO BE CONSIDERED AS LENDING ITSELF TO APPLICATION
IN OTHER FIELDS.
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:
6.
HONG KONG'S EXISTING EXPORT RESTRAINT ARRANGEMENTS IN THE FIELD
OF NON-COTTON TEXTILES ARE BASED ON EVIDENCE OF INJURY TO DOMESTIC.
PRODUCERS OF THE PARTICULAR ITEMS CONCERNED. NO SUCH EVIDENCE
HAS BEEN ADDUCED IN SUPPORT OF THE PRESENT PROPOSAL.
7. A NEW ISSUE OF PRINCIPLE WOULD THEREFORE BE INVOLVED.
8. IT IS NOTED THAT THE CONSUL-GENERAL'S PRESENTATION INCLUDED NO
SUGGESTION OF DECLINE IN PRODUCTION, SALES, PROFITS OR EMPLOYMENT.
9. THE HONG KONG GOVERNMENT NOTES THE US GOVERNMENT'S CONCERN
WITH THE GROWTH IN TEXTILE AND APPAREL IMPORTS GENERALLY.
THE HONG KONG ALSO NOTES, HOWEVER, FROM ITS STUDY OF PUBLISHED
US STATISTICS, THAT IN 1968 IMPORTS OF MAN-MADE FIBRES WERE IN
QUANTITY LESS THAT 4% OF US PRODUCTION AND OF TOTAL US CONSUMPTION,
DESPITE THE 543 INCREASE IN TOTAL IMPORTS IN THAT YEAR. THE
RATE OF GROWTH OF THESE IMPORTS APPEARS TO HAVE ALREADY MODERATED
SINCE TOTAL IMPORTS IN THE FIRST SIX MONTHS OF 1969 WERE 32%
ONLY ABOVE THE LEVEL FOR THE SAME PERIOD OF 1968.
/10. IN
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CONFIDENTIAL
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