TNAG-0242-FCO40-278-Conduct-of-Hong-Kong-commercial-relations-1970 — Page 49

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RECORD OF UNDERSTANDINGS

REACHED BY THE COTTON TEXTILES COMMITTEE DURING ITS MEETING FROM 29 JANUARY TO 9 FEBRUARY 19621

6. It was agreed that certain understandings reached by the Committee in connexion with the Long-Term Arrangement should be recorded. These follow hereunder:

ARTICLE 2

7. By "import restrictions", both in this Article and in the Arrangement ge- nerally, is meant those prohibitions or restrictions other than duties, taxes, or other charges, imposed upon the importation of cotton textiles, whether made effective through quotas, import licences, or other measures. This language parallels that of Article XI:1 of GATT.

Paragraph 4

8. This paragraph states that the participating countries concerned shall admi- nister their remaining restrictions on imports of cotton textiles from participating countries in an equitable manner and with due regard to the special needs and situation of the less-developed countries. The same considerations should apply when importing countries relax their remaining import restrictions. In this con- nexion the considerations relating to the less-developed countries set out in the preamble should also be borne in mind.

ARTICLE 3

9. Resort to the provisions of this Article should be strictly limited to the cases where market disruption as defined by the CONTRACTING PARTIES exists or is threatened.

ARTICLE 6

Sub-paragraph (a)

10. The provisions of this paragraph are not intended to hamper normal improve- ment trade in cotton textiles such as the trade referred to in Article 2, paragraph 6.

Sub-paragraph (b)

11. The invocation of the safeguard measures under Article 3 in respect of the cotton textile products concerned is a prerequisite to the application of such measures to the products containing the substituted fibres.

1 Paragraphs 1 to 5 of the document which contained this Record of Understandings dealt with organizational matters.