ENG-1971 — Page 58

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INDUSTRY AND TRADE

discriminatory import restrictions by members of GATT. Neverthe- less difficulties do occur from time to time, and the Commerce and Industry Department is responsible for such action as is necessary and practicable at official level to resolve them.

The GATT Committee on Trade in Industrial Products completed its first examination of an inventory of non-tariff barriers affecting trade in industrial products. The committee's work during the year concentrated mainly on standards, customs valuation and licensing systems. In addition, a Tariff Study Working Party was formed to undertake an objective analysis of the tariff situation as it will stand when all Kennedy Round concessions have been fully implemented on January 1, 1972. The Commerce and Industry Department followed these deliberations, which were of considerable interest to Hong Kong, and was kept fully informed by its Assistant Director in Geneva who attended the committee meetings.

The year saw the introduction of a generalised preference scheme for developing countries by the European Economic Community on July 1, Japan on August 1, and Norway on October 1. Hong Kong was included in the EEC scheme and was promised inclusion in the second phase of the Japanese scheme in early 1972. Hong Kong was also included in the schemes due to be introduced on January 1, 1972, of the United Kingdom, New Zealand and Sweden. Norway limited her scheme to the UNCTAD 'Group of 77' developing countries in the first instance, but promised to consider its possible wider exten- sion at a later stage. Most of the other prospective 'donor' countries were expected to introduce their schemes early in 1972. Hong Kong's claim to be considered a beneficiary under the various schemes has been formally stated by Her Majesty's Government and every effort continues to be made to ensure that the Colony's interests are safeguarded.

Australia: The restraint agreement entered into between the Governments of Australia and Hong Kong on July 29, 1970, regard- ing exports from Hong Kong to Australia of certain cotton drills expired on June 30, 1971, and the Australian Government indicated that it did not wish to seek a renewal. Exports of this item were accordingly covered by an export authorisation arrangement as from July 1, 1971.

In September 1971, the Australian Tariff Board published a report on knitted shirts and outer-garments and woven shirts. As a result, the Australian Government decided that existing quantitative restrictions on knitted shirts and outer-garments and additional duties on woven shirts should be continued for a further period of 18