*****

AGREED MINUTE

1. A delegation of the Hong Kong Government and a delegation of the European Community met in Brussels on 2 February 1988 for consultations in accordance with Article 14 of the Agreement on Trade in Textile Products between Hong Kong and the Community initialled on 2 October 1986 in Brussels. These consultations were held at the request of Hong Kong to address problems arising from the implementation of the said Agreement concerning category 4 (S).

2. Having regard to these problems, the two parties agreed to delete the quantitative limits for 'special quantity' of category 4 in respect of the years 1988, 1989, 1990 and 1991 established in Annex II of the said Agreement, and, in consequence, to add the following additional quantities to the quantitative limits for category 4 established in Annex II of the said Agreement:

1.2 // // // Year // Additional quantity (1 000 pieces) // // // 1988 // 10,954 // 1989 // 11,031 // 1990 // 11,108 // 1991 // 11,186 // //

3. Thus, the two parties agreed to amend the quantitative limits established in Annex II of the said Agreement as follows:

1.2.3.4.5 // // // // // // Category // Description // Unit // Year // Quantitative limits EEC // // // // // // 4 // Shirts, T-shirts and the like knitted or crocheted // 1 000 pieces // 1988 1989 1990 1991 // 36,098 36,351 36,605 36,861 // // // // //

4. It was further agreed that the regional shares for category 4 for the year 1988, as indicated informally in November 1987, will be increased in consequence of the additional quantity in paragraph 2 above by not less than the following quantities:

1.2 // // // Region // Additional quantity (1 000 pieces) // // // D // 2,365 // F // 752 // I // 609 // BNL // 1,069 // UK // 5,715 // IRL // 45 // DK // 194 // GR // 58 // S // 58 // P // 13 // //

5. It was confirmed that as regards the description of category 4 in Annexes I and II to the said Agreement such a description covers garments which were properly classified under category 4 (S) in 1987 in the Community, these garments being:

(a) knitted garments which as regards heading No 6105 (shirts for men and boys) satisfy the Harmonized System and combined nomenclature provisions including their explanatory notes;

(b) garments which as regards heading No 6109 (T-shirts, singlets and other vests) satisfy the Harmonized System and combined nomenclature provisions including their explanatory notes. 6. The two parties agreed, as an exceptional arrangement for 1988 only, that a quantity of up to 100 tonnes could be transferred into the UK regional share for category 4 from any category or categories in Group II.

7. The two parties agreed that products meeting the provisions in paragraph 5 above exported from Hong Kong to the Community and covered by category 4 (S), Hong Kong export licences dated from 1 January to 3 February 1988 would be entered into the Community on the basis of the weights declared on such export licences. For the purpose of debiting these exports against the new quantitative limits for category 4, these weights shall be converted to pieces according to the appropriate conversion factor in Annex I to the said Agreement (6,48 pieces/kilogram).

1.2 // Delegation of the Hong Kong Government // Delegation of the European Economic Community