TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 188

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I should briefly mention, as did Mr. Tien, the

actions by Canada, Australia and France which have, I know,

caused real concern and had a damaging effect on our trade.

Canada took across the board action, under

Article XIX of the GATT, against imports of 15 categories

of clothing in November 1976. These global quotas have

now been extended to 30 June 1978. And the Canadian Textiles

and Clothing Board has recommended to the Government that

bilateral restraint agreements should by then be negotiated

with major so called 'low cost' suppliers, including Hong Kong,

for a five year period on what appear to me to be singularly

unfavourable and indeed unacceptable terms. The decision

of the Canadian Government on this recommendation is

still pending. Meanwhile our exports to Canada of the products

affected by the controls have declined significantly by

roughly one third in the first five months of 1977; which

is perhaps not surprising, since global quotas were set at

1975 levels and Hong Kong exports to Canada had increased

by 86 per cent in 1976. I cannot frankly hold out much hope

of an early amelioration of the situation.

As regards Australia, textile imports have been

since December 1974 progressively controlled by means of

tariff quotas which now cover a wide range of textile and

clothing imports. There has been a significant reduction of

all imports and Hong Kong has not escaped the ill effects of

this action. Once again I can hold out little hope of early

improvement to any significant degree.

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