COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 522 final 
Brussels, 20 October 1989 
Proposal for a 
COUNCIL DECISION 
concerning the provisional application of an Agreed Minute modifying 
the Agreement between the European Economic Community and Hong Kong 
on trade in textile products 
(presented by the Commission) 
EXPLANATORY MBCRA1PIM 
1. The attached Council proposal concerns the adjustment of the quotas for 
categories 4, 5, 7 and 63, agreed on with Hong Kong during the negotiations 
on the bilateral textile agreement, following the introduction of the 
Harmonized System. 
2. It Is proposed that the above-xoentloned amendment to the bilateral 
agreement with Hong Kong on trade In textile products should be applied 
provisionally with effeot from 1 January 1989. 
3. The amendment Is set out In the agreed minute initialled on 13 June 
following the consultations held with Hong Kong on this matter. 
It Involves Increasing the quota for oategory 5 by a quantity negotiated on 
the basis of the trade recorded in 1988 for products newly incorporated in 
that oategory following the entry into foroe of the Harmonized System and 
reducing the quotas for categories 4, 7 and 83 by equivalent quantities. 
4. The Council is requested to adopt a decision concerning the provisional 
application of the abovementioned amendment to the bilateral trade 
agreement with Hong Kong. 
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PROPOSAL FOR A OCCNCIL DBCISICN 
ON THE PROVISIONAL APPLICATION OF At? AGREED MINUTE 
AMENDING THE ASSEOIENT BETWEEN THE EDRQPEAN ECONOMIC COMMDNITÏ 
AND HONG KONG ON TRADE IN TEXTILE PRODUCTS 
Consultations were held between the Community and Hong Kong on 13 June 1969 
at Hong Kong's request, and it was agreed at these consultations that the 
quota adjustment agreed on during the renegotiation of the abovementioned 
agreement should be made. 
The Commission has set out In this document the reasons justifying the 
amendment and requests the Council to adopt a decision on the provisional 
application of the amendment to the bilateral trade agreement with 
nififlfltf Kong* 
* 
1. When, in 1986, the bilateral multifltare textile agreements were 
renegotiated, oertain quantitative limits were adjusted to allow for the 
classification changes made by the Community with a view to the 
introduction of the Harmonized System. Certain additional adjustments must 
be made following the entry Into f oroe of the Combined Nomenclature on 
1 January 1988. 
2. Since 1 January 1989, the quota for category 5 has covered certain 
products in categories 4, 7 and 83. In order to ensure the neutrality of 
the conversion from the OCT and Nlmexe to the Combined Nomenclature, 
categories 8, 4, 7 and 83 should be adjusted. 
3. At Hong Kong's request, consultations were held in Brussels on 13 June 
in order to settle the matter. 
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With the Member States' help, the Commission agreed with Hong Kong to 
increase the oategory 5 quota and to reduce the oategory 4, 7 and 83 quotas 
by equivalent amounts negotiated on the basis of trade in 1988. 
4. An agreed minute containing the aiove-mentioned amendments to be made to 
the bilateral agreement was initialled on 13 June 1989 (see Annex). 
5. The Commission therefore proposes to the Council that it take a decision 
to apply provisionally the agreed minute Initialled on 13 June 1989 
amending the bilateral agreement on trade in textiles initialled by the 
Community and Hong Kong on 2 October 1986 pending the formal conclusion of 
the agreement and of the above-mentioned minute and subject to provisional 
application by Hong Kong on a reciprocal basis. 
y 
y4 S 
Proposal for a 
COUNCIL DECISION 
concerning the provisional application of an Agreed Minute modifying 
the Agreement between the European Economic Community and Hong Kong 
on trade in textile products 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, HAS DECIDED AS FOLLOWS: 
Having regard to the Treaty establishing the European 
Economic Community, and. in particular Article 113 
thereof, 
Having regard to the proposal from the Commission, 
Whereas, pending the completion of the procedures 
necessary for its conclusion, the Agreement between the 
4(A European Economic Community and Hong Kong on trade in 
textile products, initialled on 2 October 1986, has been 
provisionally applied since 1 January 1987 in accordance, for 
the Community's part, with Decision 88/213/EEC (»); 
Whereas that Agreement provides for the possibility of 
quantitative adjustments to the quotas for certain categories, 
in order to allow the introduction of the combined 
nomenclature; 
Whereas following consultations between the Community 
S H-."V and Hong Kons an Agreed Minute modifying the quotas of 
\ n-2 catégorie* * products provided for in the Agreement 
was initialled on \ "Ç "^"«AWSC- *^%*\ ' 
Whereas pending the completion of the procedures necessary 
for the conclusion of the Agreement and the Agreed Minute, 
the Agreed Minute should be applied provisionally, 
... . provided that there is a 
reciprocal provisional application on tne part of Hong 
^~ Kong, ^ ,NV «S^-v\ V<©>«- •*• ^o^vjoca 
\ <\%<\ Article 1 
Pending the completion of the procedures necessary for its 
conclusion, the Agreed Minute modifying the Agreement on 
trade in textile products between the European Economic 
Community and Hong Kong shall be applied provisionally in 
the Community, • . provided 
that there is reciprocal provisional application on the part of 
Hong Kong-s»j >W cV^ocV XH«~^ *• Jv^^^^^H 
The text of the Agreed Minute is attached to this 
Decision. 
Article 2 
The Commission is invited to seek the agreement of the 
Government of Hong Kong on the provisional application of 
the Agreed Minute referred to in Article 1 and to notify the 
Council thereof. \<*2 
Done at Brussels, 
For the Council 
(') OJ No L 97, 14. 4. 1988, p. 1. 
AGREED MINUTE 
A delegation of the Hong Kong Government and a delegation of the 
European Community met in Brussels on 13 June 1989 for 
consultations on problems arising from the adoption, following 
introduction of the Harmonised Syste-i, of clarification by the 
CCC that short knitted garments with ribbing at the bottom should 
be classified under Category 5, and the pursuant change adopted 
by the EC to classify these garments under Category. The 
consultations were conducted in accordance with Article 14(3) of 
the Agreement on Trade in Textile Products between Hong Kong and 
the Community initialled on 2 October 1986 in Brussels. 
2. As a result of the consultations and having regard to the 
migration of short knitted garments with ribbing at the bottom 
from Categories 4, 7 and F 3 to Category 5, the two parties agreed 
to add the following quantities to the quantitative limits for 
Category 5 established in Annex II of the said Agreement : 
1989 108.000 
1990 109.000 
1991 110.000 
3. It was further agreed that the regional shares for Category 5 for 
the year 1989 will be increased in consequence of the additional 
quantity for Category 5 referred to in paragraph 2 above by the 
following quantities : 
/ • Region Additional Quantity 
in 1000 pieces 
FRG 
FRA 
UK 
IRE 7 
3 
94 
4 
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4. As regards the regional shares for Categories 4, 7 and 83 for the 
year 1989, it was agreed that they will be decreased in 
consequence of the quantities to be deducted from Category 5 
referred to in paragraph 3 above by the following quantities : 
(1000 pieces) FRG FRA UK IRE 
Cat. 4 
Cat. 7 4-34 
3 
Cat. 83 (tonnes) 11 
Brussels, 13 June 1989. 
Delegation of the Hong Kong 
Government Delegation of the European 
Economic Con?nunity 
-* &S--
y\ <'7 
> Oh1! 

ISSN 0254-1475 
COM (89) 522 final 
DOCUMENTS 
EN n 
Catalogue number : CB-CO-89-476-EN-C 
ISBN 92-77-53915-1 
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