CONFIDENTIAL
Appendix II
Statement of Hong Kong's position made
at the Closing Session by Mr.E.P. Ho
Although we are unable to accept the logic of your analysis
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that competition from developed countries does not injure the Swedish textile industry we maintain that injury to a domestic industry can only come from imports of comparable products and the source of such comparable products is more likely to be from the developed countries, especially Denmark and Finland, than from Hong Kong we have noted your assessment of the need for the maintenance of a minimum textile
We have also industry to meet Sweden's needs under siege conditions. noted that the examination of this requirement is within the terms of reference of the Royal Commission which is still in session.
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For my part, I would like to state Hong Kong's position. We have always been prepared, and will continue to be pre- pared in the future, to consult with our trading partners to examine the problems of their domestic textile industries to determine together whether such problems are caused by imports, especially imports from Hong Kong. It is, of course, for this very purpose that we are meeting now. We fully acknowledge our obligations under the
GATT.
We can proudly say that we have no trading practices which are in any way contrary to the GATT. In fact we are one of the few places which practises free trade. By the same token we expect our trading partners to acknowledge our GATT right. This is vital for Hong Kong's continued existence as ours is a resourceless economy totally depen- dent on international trade. We play the game according to the rules laid down in the GATT and the C.T.A. and naturally expect our trading
partners to do the same. Were it otherwise we would be reverting to the law of the jungle, and no one would necessarily gain.
4.
for While Hong Kong may not be a Government by the people, the people, and of the people, as is understood in the Western, demo- cracies, it is nevertheless a Government for the people, and to as large an extent as possible in our peculiar circumstances, by the people and of the people. You will, I am sure, have been able to draw these conclusions yourself in your meetings with our Advisers that we can only operate on the basis of their advice and public consent perhaps even more so than in the case of a Government
elected by ballot.
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CONFIDENTIAL