BERLIN : German Economy Minister Wolfgang Clement urged the European Union yesterday to act quickly to solve problems caused by EU restrictions on Chinese textile imports which have left thousands of items of clothing blocked by customs.

In a letter addressed to the European trade and industry commissioners, Peter Mandelson and Gunter Verheugen, he wrote: "Finding a solution is extremely urgent and steps must be taken as quickly as possible because the continuation of the current state of things is intolerable for us, both from the point of view of companies and for the economy as a whole."

Clement said the majority of textiles that had been blocked by customs were deliveries from contracts signed before the EU introduced restrictions on Chinese textile imports in July this year. "The only solution is to allow imports from previous contracts," he wrote.

To the anger of many European retailers, national customs authorities have blocked entry of entire shipments of Chinese textiles since mid-July because quota restrictions have been exceeded.

The retailers claim that most of the goods were ordered and paid for before the EU introduced the restrictions.

The quotas were implemented by the EU under pressure from European textile manufacturers who claimed the market was being swamped by Chinese imports after textile trade barriers were lifted on January 1.

l The US and China held a second day of talks in San Francisco yesterday seeking to control Chinese textile shipments.

US officials have played down the immediate prospect of a comprehensive deal to regulate Chinese textile imports at the meeting. US has acted unilaterally in imposing quotas on seven Chinese textile products, and is considering introducing limits on another five.