AGREED MINUTE

1. A delegation of the Hong Kong Government and a delegation of the European Community met in Brussels on 13 April 1988 for consultations on problems arising from the transfer of rubberized knitted gloves from category 67 to category 10 on the implementation of the Harmonized System. 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, the two parties agreed to add the following quantities to the quantitative limits for category 10 established in Annex II to the said Agreement:

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3. It was further agreed that the regional shares for category 10 for the year 1988 as indicated in the Annex to the Community's note verbale dated 4 March 1988 will be increased in consequence of the additional quantity referred to in paragraph 2 above by not less than the following quantities:

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4. The two parties also confirmed that the sub-limits for the United Kingdom within the quantitative limits for category 10 established in Annex II to the said Agreement will apply to gloves impregnated, coated or covered with plastics falling within CN code 6116 10 10 and the sub-limits for these products remain as set out in Annex II to the Agreement.

5. As foreshadowed in the Agreed Minute between Hong Kong and the Community dated 23 March 1988, the two parties agreed that the special swing arrangement established under the said Agreed Minute will cease. The quantities of rubberized knitted gloves shipped under this arrangement are debited to the new quota level introduced for category 10 for the year 1988, and the quotas from which the special swing out was effected are recredited.

6. It is understood that all rubberized gloves exported from Hong Kong from 1 January 1988 are to be debited against category 10 quota.

7. A point concerning the origin definition for the rubberized gloves was raised by the Community and both parties agreed to clarify the matter at a later date.

Brussels, 14 April 1988.

Delegation of the Hong Kong Government

Delegation of the European Economic Community