DRAFT
NOTE VERBALE
4/2
Her Majesty's Embassy present their compliments to the Ministry of Commerce, and on behalf of the Hong Kong Government have the honour to refer to the action taken by the Greek Government to restrict the import of textiles from Hong Kong.
2.
The restrictions, introduced in July, 1966, ban the import of textiles products from Hong Kong, except for certain items which, in the opinion of the Federation of Greek Industries, are not being produced by the Greek industry. In reply to a number of enquiries from the Embassy, the Ministry have indicated that this action has been taken to assist the Greek textile industry, and also to ensure that prohibited imports of textiles from the People's Republic of China do not enter Greece as of Hong Kong origin.
3.
With regard to the difficulties experienced by the Greek industry, the Hong Kong Government wish to point out that the Greek Government have not acted in accordance with the relevant provisions of either the General Agreement on Tariffs and Trade or the Cotton Textiles Arrangement. Consequently, the discriminatory restrictions against Hong Kong are contrary to Greek most-favoured-nation obligations to Hong Kong.
4.
Turning to the Greek Government's need to ensure that prohibited imports of textiles from the People's Republic of China do not enter Greece as of Hong Kong origin, the Hong Kong Government wish to point out that the Greek Government require all imports from Hong Kong to be covered by certificates of Hong Kong origin. The Hong Kong Government's Department of Commerce and Industry have explained in some detail in correspondence with the Honorary Greek Consul-General at Hong Kong how the Hong Kong system for certifying origin is an effective safeguard against substitution. The Embassy have also explained the Hong Kong system to the Ministry.
5.
Briefly, a Hong Kong certificate of origin is issued only when it has been established that the goods are the product of a manufacturing process in Hong Kong which has changed permanently and substantially the shape, nature, form or utility of the basic materials used in manufacture. Such processes as simple diluting, packing, drying, assembling, sorting or decorating are not regarded by themselves as genuine manufacturing processes.
6.
Hong Kong certificates of origin are protected by appropriate legislation including sanctions for offences. The Hong Kong Government would therefore be glad to have details of any malpractice regarding certificates of origin that may have come to the notice of the Greek authorities.
7.
The Hong Kong Government believe that these arrangements to certify the origin of Hong Kong products provide an adequate safeguard against the possibility of prohibited imports from other countries entering Greece as of Hong Kong origin.
8.
The Hong Kong Government now request the Greek Government to remove the discriminatory restrictions against imports of textiles from Hong Kong and to restore Hong Kong's most-favoured-nation rights of access to the Greek market.
9.
Her Majesty's Embassy avail themselves of this opportunity to renew to the Ministry of Commerce the assurance of their highest consideration.
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