TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 43

TEXT OF STATEMENT

The European Commission have sought a mandate from the Council to

re-negotiate their agreements under the GATT Long-Term Arrangement

on Cotton Textiles with Japan, Hong Kong, India, Pakistan, South

Korea and Egypt to take account of the enlargement of the Community.

The agreements provide for these countries to restrict their exhorts

of cotton textiles to member countries of the Community. They opp จ

until 30 September 1973 except for Hong Kong and Korea where the

agreements last until 31 December 1973. A comparable arrangement

would be sought as regards exports of cotton textiles from Taiwan.

L

The new arrangements would extend as far as practicable to trade in

cotton textiles between the 7 countries and the UK, Denmark and

Ireland the pattern of restraints in the Community's existing

agreements. The practical effect would be to limit exports to the

3 acceding countries at approrirately the same levels (ith 2. rop-

riate allowance for growth) as under the bilateral arrangenents

currently existing between the countries concerned. The catereris

tion of the quotas and arrangements for flexibility between TONN

and categories would as far as possible be re-arranged to bring tha

into conformity with those in the Community's agreements, agein

out substantially chan ing their existing effect.

The ¡roducts to be covered you'd in large reasure be the care m

under the present bilateral arrangements. including in the case of

the UK cotton yarn. The UK will retain existing restraint arr nge-

ments on cotton textiles with countries other than the 7 covered by

the Community's agreements under the Long-Term Arragement.

The negotiations will take place as soon as possible and ir any

case before the end of this year.

CONVIDENT) ^I,

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