11.
US laws (in accordance with the GATT) prohibit the import of goods made in prisons. China also claims that it is her official policy not to export such goods. There are however no Hong Kong laws or international obligations which prohibit Hong Kong traders from exporting or re-exporting prison-made goods.
Present Position
12.
Following consultations between the US and China, an agreement was reached on 17 June in Beijing which would prohibit exports of prison-made goods to the US. Under the Memorandum of Understanding to be signed in August, China agrees to allow US Officials to inspect production facilities
facilities which allegedly manufacture forced-labour products for export to the US. The MOU however does not give the US access to inspect prisons.
Hong Kong Government Office, London 6 August 1992
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