TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 70

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that, if and when such agreements have been negotiated, the Community will feel able to modify its Generalised Scheme of Preference treatment of Hong Kong's textile products.

5. For its part, the Hong Kong Government confirms that not only does it stand ready at all times to respond to any request for consultations under Article 3 of the International Arrangement, but also to consider any request to negotiate an agreement under Article 4 of the Arrangement. Since this Article provides that any such agreement, intended to avoid real risks of market disruption, should be on mutually acceptable terms, and provide, on overall terms, more liberal measures than are provided for in Article 3, it is the Hong Kong Government's view that the precise treatment to be accorded in future to Hong Kong's textile exports under the Generalised Scheme of Preferences must be a factor affecting its attitude to any proposed agreement, because this treatment must have a bearing on the extent to which these exports can pose a real threat of market disruption, and thus on the extent to which any such agreement can fall within the terms of the International Arrangement, including particularly the reference to equitable treatment of participating countries

in Article 4.2.

6.

In view of the fact that parties to the International Arrangement are obliged to remove all existing unilateral restrictions by 31st March 1975, the Hong Kong Government would welcome an early indication of the Community's proposals for the future.

7. In order to avoid any disruption that might occur while the Community formulates its proposals, the Hong Kong Government would be prepared to consider extending the present unilateral restraints that it is operating until the final date of 31st March, 1975.