TNAG-1447-FCO40-1931-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1986 — Page 57

CONFIDENTIAL

For information

(14.1.86)

NOTE FOR EXECUTIVE COUNCIL

EXTENSION OF THE

XCCI (86) 8 Copy No

HONG KONG/SWITZERLAND TEXTILES AGREEMENT (1 JULY 1984 30 JUNE 1985)

TO 31 DECEMBER 1985

31

Wie have

рно на pe

A&B

Introduction

In 1975 Hong Kong entered into a one-year bilateral textiles agreement with Switzerland providing for an export authorization arrangement" for seven garment categories. Export authorization does not involve any restraint limits. In 1977 an administrative arrangement was also agreed whereby Hong Kong undertakes to supply certain export licensing information to Switzerland. The text of the agreement and administrative arrangement are reproduced at Annexes A and B respectively.

2

The agreement (and administrative arrangement) had been extended on an annual basis until June 1985 when the Swiss authorities requested a six month extension (i.e. up to 31 December 1985) in order

in order to carry out a reconciliation in" statistics between Hong Kong's export figures and Swiss import figures. The Swiss request was in response to the proposal by the Hong Kong Government to terminate the agreement.

This was noted by Members on 25 June 1985 (XCCI(85) 28).

Extension of the Agreement

3

The Awiss authorities have never invoked the consultation provision in the agreement to seek to restrain exports from Hong Kong. The statistical exercise carried out by the Swiss authorities has demonstrated that the differences between Hong Kong export figures and the Swiss import figures are small and remained more or less constant in most cases. The Administration remains of the view that termination of the HK/Switzerland textiles agreement would have advantages for Hong Kong. Removal of potentially restrictive agreement could be presented as trade liberalisation, which would be symbolically helpful at the time of the negotiations on the Multi-Fibre Arrangement. It would also reduce paperwork by the trade and the government departments involved.

CONFIDENTIAL

HKK 011/2

RECEIVEL

1 7 JAN 1986

IDLA

7817/1

18

2