TNAG-1155-FCO40-1435-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 211

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4.

(a)

(b)

generally to preserve Hong Kong's GATT Most Favoured Nation (M.F.N.) rights of access;

to facilitate Hong Kong's external trade by

maintaining an internationally acceptable

certification and documentation system, and

also by maintaining the integrity of export

licensing systems where a need to regulate

its exports exists (see para. 4 below).

The only area where Hong Kong has surrendered its M.F.N.

rights is in respect of textile products covered by the Multi-

Fibre Arrangement (MFA). Under this Arrangement Hong Kong

has entered into a series of bilateral export restraint

agreements with a number of importing countries. Hong Kong's

rationale, in this regard, is that the orderly regulation of

trade in textiles is preferable to anarchy.

5. The MFA, concluded in 1974, has been extended for a thirâ

term until 31 July 1986. As a signatory of the MFA, Hong Kong

is prepared to honour all the obligations devolved on it

including accepting restraints on its exports where the

restraints are consonant with the terms of the MFA.

6.

The bilateral negotiations under the renewed MFA have

proved to be difficult and there is a tendency on the part

of importing countries to disregard their obligations under

the MFA. In Hong Kong's view, this is an unhealthy trend.

One means whereby such a trend could be arrested would be a

conscious multilateral concensus towards that. The GATT

Ministerial Meeting scheduled for 24 to 26 November 1982

would seem to be an appropriate forum to focus attention

on the textiles issue. If Ministers are to address themselves

to problems affecting the international trading system, it would be a serious omission if they were to fail to give due regard to a sector of trade which is of great importance

particularly....../-