TNAG-0242-FCO40-278-Conduct-of-Hong-Kong-commercial-relations-1970 — Page 41

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the operation of this Arrangement, the participating countries shall consider taking such action as may be consistent with their law to prevent such frustration.

Article 7

1. In view of the safeguards provided for in this Arrangement the partici- pating countries shall, as far as possible, refrain from taking measures which may have the effect of nullifying the objectives of this Arrangement. 2. If a participating country finds that its interests are being seriously affected by any such measure taken by another participating country, that country may request the country applying such measure to consult with a view to remedying the situation.

3. If the participating country so requested fails to take appropriate remedial action within a reasonable length of time, the requesting parti- cipating country may refer the matter to the Cotton Textiles Committee which shall promptly discuss such matter and make such comments to the participating countries as it considers appropriate. Such comments would be taken into account should the matter subsequently be brought before the CONTRACTING PARTIES under the procedures of Article XXIII of the GATT.

Article 8

The Cotton Textiles Committee, as established by the CONTRACTING PARTIES at their nineteenth session, shall be composed of representatives of the countries party to this Arrangement and shall fulfil the responsibilities provided for it in this Arrangement.

(a) The Committee shall meet from time to time to discharge its functions. It will undertake studies on trade in cotton textiles as the participating countries may decide. It will collect the statistical and other informa- tion necessary for the discharge of its functions and will be empowered to request the participating countries to furnish such information. (b) Any case of divergence of view between the participating countries as to the interpretation or application of this Arrangement may be referred to the Committee for discussion.

(c) The Committee shall review the operation of this Arrangement once a year and report to the CONTRACTING PARTIES. The review during the third year shall be a major review of this Arrangement in the light of its operation in the preceding years.

(d) The Committee shall meet not later than one year before the expiry of this Arrangement, in order to consider whether the Arrangement should be extended, modified or discontinued.