ENG-1972 — Page 40

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INDUSTRY AND TRADE

The European Economic Community: In 1972, exports of all cotton textiles other than yarns to the six Member States of the European Economic Community con- tinued to be limited under the Hong Kong/EEC Cotton Textiles Agreement. Under the terms of the agreement, Hong Kong undertook to restrain exports of some finished fabrics and made-ups and apparel items to agreed limits. For certain grey and bleached fabrics, however, a separate arrangement has been instituted whereby the limits are only to be determined under agreed conditions following consultations between the EEC and Hong Kong. In October 1972, consultations were held in Brussels at the request of the European Economic Community on exports of grey and bleached fabrics, and on the conversion factors applied by Hong Kong in respect of woven cotton trousers exported under the provisions of this agreement. Following these discussions a limit on exports of grey and bleached fabrics was determined, and modifications to the conversion factors for woven cotton trousers introduced.

During the year, further progress was made by the European Economic Com- munity in achieving a Common Commercial Policy covering all aspects of the external trade of Member States. The Hong Kong Government continued to watch these developments closely and to examine the implications for Hong Kong of all new regulations issued regarding the implementation of a Common Commercial Policy.

Republic of Ireland: On January 1, the Government of the Republic of Ireland introduced its generalised preference scheme for developing countries and dependent territories including Hong Kong. This scheme provided for unlimited entry at reduced tariff rates for manufactured goods, with the exception of textile manufactures.

Norway: The agreement whereby Hong Kong undertook to restrain exports to Norway of six categories of cotton and non-cotton garments in the period November 1, 1970 to June 30, 1972 was extended to December 31, 1972 by an exchange of letters in May and June.

Sweden: On January 1, Sweden introduced its generalised preference scheme for developing countries and dependent territories including Hong Kong. The Swedish scheme provided for unlimited duty-free entry for certain agricultural and manu- factured products with the exception of a range of textile items and footwear.

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Consultations with representatives of the Swedish Government on Hong Kong's exports of cotton and non-cotton textiles took place in May, resulting in an agreement whereby Hong Kong undertook to restrain exports to Sweden of six groups of garments in the period July 1, 1972 to June 30, 1973.

United Kingdom: On January 1, the United Kingdom introduced its generalised preference scheme for developing countries. Hong Kong is a beneficiary of the scheme.

As from January 1, imports into the United Kingdom of cotton yarn and woven cotton textiles were subject to new Commonwealth Preference rates of duty. The new Commonwealth Preference rates of duty are generally 85 per cent of the full rate.

On January 22, the United Kingdom (together with Ireland, Denmark and Norway) signed the Treaty of Accession concerning its entry into the European