TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 114

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low cost textiles is not permitted.

9. In the context of the generalised preference schene, the

EEC has offered (see brief No 2 on the UNCTD offer) to admit

inports of cotton textiles duty free, up to recent levels of

trade, from developing countries whose trade is already limited

under quotas agreed through the Long Term Arrangement.

offer however is unlikely to apply to Hong Kong.

International Trade the Long Term Arrangenent

This

10. The Long Term Arrangement on Cotton Textiles (LTA) was

negotiated in 1962 within the frameworth of GATT. The countries

party to the LTA are members of the Cotton Textiles Committee of

the GATT. International trade in cotton goods is governed by

this agreement. The LTA permits exporting and importing

countries to conclude bilateral agreements for restraint of

trade in cotton goods. Britain accepted the ITA on behalf of

Hong Kong, and with our approval Hong Kong has negotiated such

agreements with all inporting countries. Hong Kong's

representatives attend meetings of the Cotton Textiles Committee

as members of the British delegation. They have an opportunity

to present Hong Kong's views independently but in practice the

expression of conflicting views by United Kingdom

representatives and representatives of Hong Kong is avoided.

These arrangements reflect the fact that Hong Kong, being a

dependent territory, is not a separate nenber of the GATT, and

is represented in the GATT by the British delegation. Proposals

to give to Hong Kong the sane degree of independence of action on

non-cotton textiles (and possibly on sone other commodities) as

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