ENG-1969 — Page 98

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INDUSTRY AND TRADE

extended to include shirts made from woven fabrics of polyester/ polynosic blends.

United States of America. Exports of cotton textiles to the United States continued to be restrained under the five-year United States/Hong Kong Bilateral Agreement. The restraint limit for the fourth year of the agreement, which ended on September 30, 1969, was 389.87 million square yards; for the fifth year this figure was increased to 409.36 million square yards.

The US Secretary of Commerce, Mr Maurice Stans, visited Hong Kong in May to explain US concern over rising imports of textiles of non-cotton fibres and to seek Hong Kong's agreement to attend a special meeting the US proposed to hold within the GATT to discuss the problem. Hong Kong expressed its willingness to consult with any of its trading partners in any specific sector where there was a demonstrable case of market disruption caused by imports from Hong Kong, but could see no justification, from the information presented by Mr Stans, for any action by Hong Kong along the lines proposed by him. Hong Kong took note of the situation as explained by Mr Stans and assured him that it would be prepared to renew discussion at any time on the request of the United States Government. In October a further approach was made to Hong Kong and some discussion took place subsequently in Geneva.

The Benelux Countries. Hong Kong's exports of cotton textiles to the Benelux countries are restricted under a comprehensive bilateral agreement concluded in June 1968, whereby Hong Kong agreed to restrain exports of all cotton textiles (except yarns) to a limit of 3,153 metric tons for the period July 1, 1968 to December 31, 1969. As a result of the growing needs in the Benelux countries of the re-export trade in unbleached cotton textiles, it was agreed in July this year that Hong Kong would issue export licences outside the ambit of the bilateral agreement for additional quantities of unbleached grey fabrics destined for further processing and consumption outside the EEC and its associated territories.

Norway. This year saw the continuation of the export restraint agreement with Norway on Hong Kong's exports of five categories of cotton garments. In September, Hong Kong undertook