RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/HKG/4
24 July 1998
(98-2931)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the EUROPEAN COMMUNITY
Regarding the New and Full Notification of HONG KONG, CHINA1
The following communication, dated 16 July 1998, has been received from the Permanent
Delegation of the European Commission.
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In Document G/SCM/N/38/HKG, Hong Kong, China indicates that it grants no subsidies
which require notification under Article 25.2 of the WTO Subsidies Agreement.
The Community has noticed that Hong Kong , China currently provides the following
incentives to its industry :
1. Industrial Support Fund  (HK$274 million)
2. Applied Research and Development Scheme (HK$500 million)
The Community understands that both these schemes provide a financial contribution to
Hong Kong, China companies and confer a benefit to such companies by relieving them of costs
which they would otherwise have had to bear themselves.
Hong Kong, China is requested to inform the Community if intends to notify these
programmes under Article 25.2.  If no such notification will be forthcoming, could Hong Kong, China
explain the reasons for the lack of notification?
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1 G/SCM/N/38/HKG.