AGREED MINUTE

1. A delegation of the Hong Kong Government and a delegation of the European Community met in Brussels on 27 July 1988 for consultations on problems arising fr6m the adoption, following introduction of the harmonized system, of the revised definitions of blouses, both knitted and woven, as set out in the explanatory notes to the combined nomenclature (CN) Chapters 61 and 62 concerning shirts, shirt-blouses and blouses for women or girls (category 7). 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 woven tops with shoulder straps and woven tops without opening from category 78 to category 7, the two parties agreed to add the following quantities to the quantitative limits for category 7 established in Annex II of the said Agreement:

Year // Additional quantity '000 pieces

1988 // 632

1989 // 637

1990 // 642

1991 // 647

and to deduct the following quantities from the quantitative limits for category 78 established in Annex II of the said Agreement:

Year // Quantity to be deducted Tonnes

1988 // 52

1989 // 52

1990 // 53

1991 // 53

3. It was further agreed that the regional shares for category 7 for the year 1988 as indicated in the Annex to the Community's Note Verbale N° 02728 dated 4 March 1988 will be increased in consequence of the additional quantity for category 7 referred to in paragraph 2 above by the following quantities:

Region // Additional quantity '000 pieces

D // 417

F // 61

I // 1

BNL // 19

UK // 133

DEN // 1

4. As regards the regional shares for category 78 for the year 1988 as indicated in the Annex to the Community's Note Verbale N° 02728 dated 4 March 1988, it was agreed that they will be decreased in consequence of the quantities to be deducted from category 78 referred to in paragraph 1 above by the following quantities:

Region // Quantity to be deducted Tonnes

D // 34

F // 5

BNL // 2

UK // 11

Brussels, 28 July 1988.

Delegation of the Hong Kong Governement

Delegation of the European Economic Community