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INDUSTRY AND TRADE

and during the past year Hong Kong made representations, outside the field of cotton textiles which are covered by their own particular arrangements, to the governments of Australia, Austria, the United States, the Benelux, South Africa, France and Nigeria. In addition, Hong Kong experienced discriminatory barriers to trade imposed by the Republic of Ireland, Sudan and the Philippines, none of which are contracting parties to the General Agreement. As a result of the continued imposition of the import surcharge, Hong Kong's trade with the United Kingdom did not return to the 1964 level. But the reduction of the surcharge to 10 per cent and its ultimate removal in November did result in some improvement. During the year, Hong Kong followed with considerable interest further develop- ments designed to bring about the free movement of goods within the European Economic Community. As the community already provides the Colony with a market worth about $500 million annually, Hong Kong is particularly concerned that the process of creating the Common Market should not result in limitations on the community's external trade.

The year has been one of intense activity in the sphere of multi- lateral commercial policy. Australian proposals to introduce a limited scheme of preferences for imports from less-developed countries, including Hong Kong, were discussed at length in the General Agreement on Tariffs and Trade, the contracting parties eventually granting a waiver in April. In spite of this initiative, a general scheme of preferential entry to the markets of the industrial- ized countries of Western Europe and North America for exports of less-developed countries has yet to be agreed. Hong Kong also followed with considerable interest developments in the Kennedy Round of tariff negotiations. During the year, the United Kingdom Government confirmed to the contracting parties of the GATT that they were also participating in the Kennedy Round on behalf of those dependent territories in respect of whom they had provi- sionally accepted the General Agreement; this includes Hong Kong.

In the textiles sector, the GATT Long-Term Arrangement regard- ing international trade in cotton textiles entered its fifth and final year on 1st October. In consequence, there was considerable inter- national discussion, both bilateral and multilateral, in which Hong Kong was closely involved, concerning the future of the arrange- ment. In the course of the fourth year of the arrangement, Hong