TNAG-0241-FCO40-277-Agreements-under-GATT-long-term-arrangements-for-exporting-o-1970 — Page 37

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in the proportions applied during the second year of the Arrangement. (5) That the Hong Kong Government will provide the United States Government periodically with such information on exports in restrained and unrestrained categories as has been provided during the second year of the Arrangement, and such other information as may be mutually agreed upon. (6) That exports in category 52 during the third year of the Arrangement, and thereafter, shall be confined to cotton woven blouses and that the nomenclature for this category shall be changed accordingly to "Blouses, not knit" in all offi- cial communications and for the purposes of the Hong Kong export controls. Knit blouses shall be classified and reported in a separate product sub-category of category 62.

(7) That the non-blouse components of blouse sets shall be classi- fied, during the third year of the Arrangement and there- after, in the categories in which they would be classified if exported separately, e.g. ladies' slacks will be classified in category 51 and ladies' skirts in category 63.

(8) That the Hong Kong Government will forgo the 5% growth for 1964/65 provided under the terms of the Arrangement in respect of category 51.

(9) That the Hong Kong Government will forgo the right to swing into category 51 in respect of the transfer increase of 325,000 dozens described in paragraph 2(13) of this Memo- randum. Category 51 will therefore be restricted during 1964/65 to a swing increase amounting to 5% of the 1963/64 restraint level, i.e. 5% of 1,280,858 dozens equal to 64,013 dozens.

(10) That exports of duck within category 26 during the third year of the Arrangement shall be restricted to a level not greater than 21.5 million square yards.

(11) That an export shortfall equivalent to 1.4 million square yards (using U.S. conversion factors) shall be induced dur- ing the third year of the Arrangement in the restrained made- ups and apparel categories, i.e. those categories from 28 to 64(1) inclusive as listed in Appendix 1. It is expected that a substantial proportion of this shortfall will occur in the apparel categories, but no assurance as to the proportions into which it will be divided can be given by the IIong Kong Government.

(12) The Hong Kong Government confirms that, where under United States classification procedures components of match- ing sets (not "entireties") are classifiable in separate cate-

TIAS 5872