ENG-1968 — Page 95

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INDUSTRY AND TRADE

Outside the ambit of the Cotton Textiles Arrangement, Hong Kong's exports to Britain of cotton yarn, cotton woven piecegoods, garments and made-up articles are limited under an agreement reached in 1966. This agreement, which runs for five years, provides in 1968 for the export of 6.43 million pounds of cotton yarn and the equivalent of 191.13 million square yards in the piecegoods, garments and made-ups groups combined. In September, con- sultations were held with the Board of Trade concerning Hong Kong's exports of wide cotton sheeting and sheets, and, as a result, slightly revised categorization arrangements will apply in 1969.

The year also saw the continuation of Hong Kong's export restraint agreements with the Federal Republic of Germany relating to cotton woven textile products, and woollen knitted outerwear. The cotton restraints were negotiated under the Cotton Textiles Arrangement and the aggregate limits for 1968 and 1969 are 66.65 million square yards and 67.65 million square yards respectively, with the flexibility provisions of swing, anticipation and carryover. The limits on woollen knitted outerwear for 1968 and 1969 are 875,000 dozens and 925,000 dozens respectively, and the agreement provides for three per cent carryover per annum.

DOCUMENTATION OF EXPORTS

Import and export licensing formalities are kept to a minimum consistent with Hong Kong's international obligations and the spirit of free trade. Complex procedures have had to be established, however, to ensure that Hong Kong's responsibilities in respect of restraints on cotton textile exports are discharged.

With the growth in exports of Hong Kong products in absolute and relative terms, certification of Hong Kong origin has become vitally important to the economy. Since Hong Kong has practically no raw materials, the origin of manufactured goods is established by the nature of the work carried out in Hong Kong factories in transforming imported raw materials into a wide range of what are essentially consumer goods. The Commerce and Industry Department is responsible for ensuring that Hong Kong certificates of origin remain fully acceptable to overseas customs authorities and, to this end, the department has established a close system of liaison in certification matters with the four non-government