TNAG-0243-FCO40-279-Conduct-of-Hong-Kong-commercial-relations-1973 — Page 187

W(B)L 51-7406

NOTHING TO BE WRITTEN IN THIS MARGIN

。

And since

then importi from developing count

all other

here been brought Unda contiol.

the

from all sources except Sino-Soviets and

Japan (and we

CONFIDENTIAL

restrictions in the United Kingdom market

Knitted cotton textiles, principally under-

Sweaters and leisure shuts,

garments, jare not subject to quota.

Non-

cotton textiles are also free of quantitative restrictions but goods containing more than 5% by weight of man-made fibre are subject to a preferential tariff.

7. International trade in cotton goods is

governed by a multilateral agreement called

the Long Term Arrangement on Cotton Textiles (LTA) which was negotiated in 1962 within the framework of GATT. The LTA permits exporting

and importing countries to conclude bilateral agreements for restraint of trade in cotton goods; a "country" party to the LTA, has negotiated such agreements with all the major importing countries. Moreover, Hong Kong as a party to

the LTA is a member of the Cotton Textiles

Committee of the GATT. This Committee, in.

addition to being concerned with the administra-

plan to liberaise Boodate and with our approval Hong Kong, as

"Japan

within the next two or three

years);

The United

Kingdom accepted

the LTA on

behalf of Hong Kong,

and with ou

approval Hong Kong has negotiated such agreement with all imposing Counties. The Counties

party

the LTA! are

members 2

Cotton taxfites

2.

the

GATT.

tion of the LTA, undertakes studies on trađe

in cotton textiles and keeps the operation of

Although Hong Kong'sparticipates in her own right in the LTA,

the ITA under regular review.

Her representatives attend meetings of the

Cotton Textiles Committee as members of the

UK delegation. They have an opportunity to present Hong Kong's views, but in practice the expression of conflicting views by United Kingdom representatives and representatives of Hong Kong is avoided.

Committee of the Non-Cotton Textiles (Man-made fibres and Wool)

ements

8.

some

Asses,

Apart from the United States all major developed countries restrict imports of non-

cotton textiles from Japan. In other cases,

the rules of the GATT apply. In the past three years Korea, Taiwan and Hong Kong have all been using Japanese yarn and cloth for knitting and

These arranger leffect the fact that Hong Kong, being a dependant terhorng is not a separate member of the GATT and in represented in the GATT making-up into garments and pressure has built by the UK Delegation. Hong Lup to restrict this trade. Kong could become an independerlikely at one time to prese that the LTA should member of the GATT only if she wen declared to here

fill autonomy in the conduct of her external commencl

The USA seemed

suggested

be extended

relations'.