TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 198

i believe that all these efforts, both by the

Government and by the industry, have resulted in a much better understanding within Her Majesty's Government of the situation and problems confronting our local textile and garment industry. Nevertheless, I cannot but feel a little disappointed that all these efforts have not yet succeeded in bringing about any significant change in the attitude of the EEC on its policy on textiles nor on the future of the IFA.

The failure on the part of the GATT Textile Committee to agree on the renewal of the MFA, which expires at the end of this year, has cast a shadow of doubt over the future of international trade in textiles. We all must hope that the Committee will meet again in the near future to reach a definitive solution on the future of the MFA.

Insofar as the future of Hong Kong's bilateral agreements are concerned, it remains to be seen whether, and to what extent, the EEC will seek to embody its highly restrictive proposels in its bilateral agreements with exporting countries. The current bilateral agreement between the EEC and Hong Kong expires at the end of this year and I have no doubt that the EEC will seek negotiations with us fairly soon with the object of concluding a new bilateral agreement to replace the existing one. I sincerely hope, however, that in the course of those negotiations, the EEC will not seek to intensify what are already very severe restrictions on our exports to its markets.

Meanwhile, we have negotiated a new bilateral agree- ment with the United States covering our textile exports to that market for the next 5 years. Arrangements have also been announced whereby, pending the entry into force of the new agreement on 1st January, 1978, the current bilateral agreement has been extended to the end of this year. There is, therefore, a framework within which the industry can plan its production and sales in respect of our largest single market up to the and of 1982. This should have been helpful to the textile and garment industry amidst all the present uncertainties.

/p. €