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3.
We have not yet quantified the effects of this agreement on our present trade and future prospects, but it represents a severe blow to a large growth sector of our economy.
6.
Other uncertain factors may also affect our trade one way or another. In this category fall the Generalized Preferences Schemes of the developed countries, particularly those of the United States and Japan. Although the
Japanese government has said that Hong Kong will be included in the second stage of the implementation of its scheme starting from next April, we do not yet know what items will be excluded. A long list of exceptions could, of course, make our inclusion meaningless. Little is known of the United States scheme or current Administration/ Congressional thinking but again, bearing in mind the importance to Hong Kong of the American market, developments there are watched with considerable concern. Our main worry has always been, and continues to be, the avoidance of discrimination against Hong Kong. As we have said on so many occasions, we do not seek additional advantages but wish to avoid a situation whereby our competitors, such as Taiwan and Korea, are included while we
ourselves are not: their products would have an edge over ours in prices, thus subjecting our goods to unfair competition.
7.
The task of governing Hong Kong is a challenging one. It is a place without natural resources, other than the resilience, ingenuity and industry of its people, and it is a place in which the unexpected invariably happens. I would have
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