A matter
contradiction
BRITAIN'S Common Market negotiator Mr Geoffrey Rippon's statement yesterday that London cannot give us any guarantee on our trading position if Britain entered the European Economic Community is something that demands considerable re-thinking on our part.
In the first place, his statement contradicts what the Financial Secretary, Sir John Cowperthwaite, said in the Legislative Council last July. Replying to a question, Sir John stated: "The British Government has assured us it will make every effort to protect the Commonwealth's position during negotia- tions for entry into the Cominon Market.
But Mr Rippon said yesterday that "nobody can give anybody guarantees in world. trade."
This leaves us with the question as who, in fact, "assured" Sir John on protection the Commonwealth and what, since then, de Mr Rippon and the Heath govern declare that London cannot guarantee Us anything.
What Mr Rippon and our Government officials should bear in mind during their present talks here is that Hongkong cannot be bracketed on equal par with other Common- wealth countries. We have a special political and economic attachment to Britain which demands special consideration.
But if Britain is going to disregard this attachment it will immediately spark a series of other questions including our currency's relation to the sterling and our reserves in Britain.
Mr Rippon's pronouncements about our economic strength and remarkable resilience since the war is nothing but a smoke-screen to guide us away from the issue that he is here to discuss. We should not accept any attitude of complacency that
would overcome any obstacle put in our way because of our past successes in coping with tremendous problems.
We
After all, what has helped us to gather our present economic strength was the free flow of trade. But if more and more trade barriers are raised around the world we will not be able to turn our industrial output into valuable dollars that are essential for our economic survival.
It is time that we should raise our voice against trade protectionism.
Hong Kong Standard 12-9-70
NEW YORK, Fri.
THE US$24,500,000 Pan American Worl Airways (Pan Am) will collect from its insurance carriers for that Boeing 747 blown up in Cairo/by Arab commandos last Monday is only partial compensation for losses suffered by Pan Any and other airlines from air hijacking.
And collection of the insurance, from/several insurance carriers, is not going to be automatic
whether because of a growing dispute over whether such incidents fall under “war risk” or “all-risk" clauses in the multi-million policies.
The total cost, airline executives said, is jumeasurable. For one thing, the insurance payment covers fhe cost of the plane, but it does not cover the loss of its productive capacity. It takes a considerable time to get/another jetliner built, tested and into service and the airling meanwhile loses passenger and freight revenue,
There also is the matter of the cost of insurance. Executives of one airline say they had no doubt the new style of hijacking that has developed recently is going to cost the airlines more in insurance premiums.
Pan Am will collect from Lloyds of London and its US insurers, a Lloyds spokesanan said. The 747 was insured under two policies, one covering war risks and one covering all risks except war risks. The Lloyds spokesman said the payment probably would be made under the "all-risk" clause because American insurer practice is to include hijacking under that clause.
Not sim
However, one of Pap Am's US insurance carriers, enriers, US Aviation Lind Inc., said things that simple. “We know enough about the facts (connected with the bombing of the 747) and the investigations are only beginning," a spokesman for the firm said. He said the outcome, of the inquiries will determine whether the claims will he paid under war risk clauses, under which Lloyd's is the ptime carrier, or the all-risk clauseR
which constitute the bulk of American coverage.
As far as insurance rates are concerned, if these hijacking situations increase exposure and increase losses then rates are going. to go up, he said.
Big claimm
Sometimes It is not that easy to collect. Trans World Airlines (TWA) still is pressing a US$9 million suit
gainst a group of British underwriters to collect, under a war risk clause for! Josses suffered when hijackers blew the nose off one of its jets in Damascus last year.
Beyond the loss of the aircraft and its earning power are #1 number of. other costs, many of which he airlines have to pay
mselves. These include costly security measures, extra fuel, extra crew salaries, hotel accommod- ations, and extra landing fees.
"It costs us US$2,000 to 3,000 extra every time we have to make the Cubaˆ run," a national airlines spokesman said. These costs include the, landing fee at the airport in Havana, which
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