TNAG-1140-FCO40-1420-Quarterly-progress-reports-on-Hong-Kong-1982 — Page 32

SLIVI

AL TX TI

2.

2

During the negotiations so far

agreement has been reached on quota

coverage, an export authorisation

system, and administrative procedures

for the implementation of the

agreement. Issues still unresolved

cutbacks and restraint levels for

the sensitive categories, flexibility

provisions, circumvention, anti-surge

mechanism, and an outward processing

are

trade system.

The third round of negotiations

is scheduled to resume in Brussels in

mid-November.

密

CONFIDENTIAL # 3

Consultation with

France

import

on illegal

restrictions

To seek the

removal of the

restrictions.

Hong Kong holds the view that

these import restrictions are illegal

under the GATT. Hong Kong would be

prepared to tolerate some of the

restrictions for a limited, set

period provided that there were a

satisfactory phased programme of elimination; otherwise, Hong Kong will look to a GATT panel to rule on

the matter (GATT Article XXIII).

on

Await the GATT panel'

finding to decide

the future course

action that Hong Kong

should take.

of

G.F. 336