TNAG-0242-FCO40-278-Conduct-of-Hong-Kong-commercial-relations-1970 — Page 40

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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(a) Trans-shipment

The participating importing and exporting countries agree to collaborate with a view to preventing circumvention of this Arrangement by trans- shipment or re-routing and to take appropriate administrative action to avoid such circumvention. In cases where a participating country has reason to believe that imports shipped to it from another participating country and purporting to have originated in that country did not originate there, it may request that country to consult with it with a view to assisting in the determination of the real origin of the goods.

(b) Substitution of directly competitive textiles

It is not the intention of the participating countries to broaden the scope of this Arrangement beyond cotton textiles but, when there exists a situation or threat of market disruption in an importing country in terms of Article 3, to prevent the circumvention of this Arrangement by the deliberate substitu- tion for cotton of directly competitive fibres. Accordingly, if the importing participating country concerned has reason to believe that imports of pro- ducts in which this substitution has taken place have increased abnormally, that is that this substitution has taken place solely in order to circumvent the provisions of this Arrangement, that country may request the exporting country concerned to investigate the matter and to consult with it with a view to reaching agreement upon measures designed to prevent such cir- cumvention. Such request shall be accompanied by a detailed, factual statement of the reasons and justification for the request. Failing agree- ment in the consultation within sixty days of such request, the importing participating country may decline to accept imports of the products con- cerned as provided for in Article 3 and, at the same time, any of the partici- pating countries concerned may refer the matter to the Cotton Textiles Committee which shall make such recommendations to the parties concerned as may be appropriate.

(c) Non-participants

The participating countries agree that, if it proves necessary to resort to the measures envisaged in Article 3 above, the participating importing country or countries concerned shall take steps to ensure that the partici- pating country's exports against which such measures are taken shall not be restrained more severely than the exports of any country not partici- pating in this Arrangement which are causing, or threatening to cause, market disruption. The participating importing country or countries con- cerned will give sympathetic consideration to any representations from participating exporting countries to the effect that this principle is not being adhered to or that the operation of this Arrangement is frustrated by trade with countries not party to this Arrangement. If such trade is frustrating

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