TNAG-0241-FCO40-277-Agreements-under-GATT-long-term-arrangements-for-exporting-o-1970 — Page 46

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4. Within the aggregate limit and the applicable group limits, the specific limits provided for in Annex A shall apply for the first agreement year.

5. Within the aggregate limit, the limits for Groups I, II and IV may be exceeded by not more than 10 percent, and the limit for Group III may be exceeded by not more than 5 percent. Within the applicable group limit (as it may be adjusted under this provision) specific limits may be exceeded by not more than 5 percent.

6. During the term of this Agreement, the Government of Hong Kong shall limit exports of corduroy apparel from Hong Kong to the United States. For the first agreement year this limit on corduroy apparel shall be 7,350,000 square yards equivalent. Exports of corduroy apparel shall also be counted against all other pertinent limits provided in this Agreement.

7. In the second and succeeding twelve-month periods for which any limitation is in force under paragraphs 1, 2, 3, 4 (including Annex A) and 6 of this Agreement, the level of exports permitted under such limitation shall be increased by 5 percent over the corresponding level for the preceding twelve-month period, the latter level not to include any adjustments under paragraph 5.

8. In the event of undue concentration in exports from Hong Kong to the United States of cotton textiles in any category not given a specific limit, the Government of the United States of America may request consultation with the Government of Hong Kong to determine an appropriate course of action. During the course of such consultation the Government of Hong Kong will not license further exports of the particular product in question.

9. The Government of Hong Kong shall use its best efforts to space exports from Hong Kong to the United States within each category evenly throughout the agreement year, taking into consid- eration normal seasonal factors.

10. The two Governments recognize that the successful imple- mentation of this Agreement depends in large part upon mutual cooperation on statistical questions. The Government of the United States of America shall promptly supply the Government of Hong Kong with data on monthly imports of cotton textiles from Hong Kong. The Government of Hong Kong shall promptly supply the Government of the United States of America with pertinent data on anticipated exports in categories not subject to specific limits and data on monthly exports of cotton textiles to the United States. Each Government agrees to supply promptly any other available statistical data requested by the other Government.

11. In the implementation of this Agreement the system of categories listed in Annex B shall apply. Recognizing that this Agreement aligns to the best knowledge of the two Governments, Hong Kong's export control practices and United States classification practices as far as is practicable to do so (unless agreed otherwise), each Government will consult with the other, at the earliest possible opportunity, if it comes to the notice of either Government that any

TIAS 6088

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