TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 107

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G.F. 323

CONFIDENTIAL

2.

5.

In order that we can maintain the impetus to improvements

in the standard of living of our population as a whole, we must con-

tinue to enjoy our rights of access to overseas markets. And in cases where we agree to exercise export restraint to assist our

trading partners, we must place the greatest emphasis on

6.

(a)

(b)

(c)

there being no cut-back in our level of trade;

our restraint being of benefit to the domestic industry injured by imports from Hong Kong, and not resulting in

diversion of trade to third country suppliers; and Hong Kong continuing to share in the growth of the market

for the items under export restraint.

In accordance with the above criteria, Hong Kong fully

expects that :-

(a)

(b)

(c)

where restraint was originally conceded in accordance with the market disruption criteria of Annex C to the

C.T.A., or serious injury under Article XIX of the GATT,

in any extension in time of the restraint, we must have growth in excess of the minimum of 5% provided for in paragraph 3 of Annex B of the C.T.A.: this 5% being suitably augmented in accordance with the spirit of the C.T.C. Resolution of 17 December 1969;

where restraint was originally conceded on the basis of

a threat of serious injury and such injury has not

materialized, any continued restraint for a further year must be at such a level being considerably above the 5% growth on the previous limit so as to compensate Hong Kong at a rate commensurate with the rate of growth

of the market for the item in question;

the level for any new restraint must not be lower than

at the level provided for in Annex B of the C.T.A., and should as far as possible be on the level of trade achieved plus a reasonable level to take into account the expected growth of the market.

CONFIDENTIAL