EXTRACT OF A SPEECH MADE BY DR. THE HON. S.Y. CHUNG AT THE HONG KONG LEGISLATIVE COUNCIL ON OCTOBER 31, 1973

The second issue which I would like to raise in this debate

is about the voice of Hong Kong people in the H.M. Government.

Occasionally, there are cases in which there are conflicting

interests between H.M. Government and the Hong Kong Government.

Since Hong Kong is a Colony and officials in the Hong Kong

Government, with greatest respect, are basically members of

the U.K. civil service and, strictly speaking, are under

directives of Whitehall. Despite all their good efforts, the

voices of Hong Kong people are seldom heard within the U.K.

Government. I can readily cite two recent cases in point.

The first is the British guarantee on Hong Kong's sterling

reserve. Hong Kong was supposed to have negotiations by

right with the U.K. Government about a year prior to the

expiry date but was eventually denied of any negotiation.

The second case in point is the discrimination against Hong

Kong by H.M. Government itself. As from 1st January 1974

(two months from now), the U.K. Generalised Preference Scheme

will begin to reach harmonization with that of the European

Economic Community. This will mean that in less than four

years the U.K. will have to apply the full EEC's Common

External Tariff to Hong Kong's textiles and footwears. This

discriminating action taken by H.M. Government will place

these two important local industries at a grave economic

disadvantage as against similar exports from our competitors

such as South Korea, India, Pakistan, Thailand and Philippines

which will be eligible for duty free entry into the U.K.

Hong Kong is small by geographical area but is by no means

insignificant as far as population, economic strength and size

of world trade are concerned. It is desirable that the Hong

Kong case should be put directly and forcibly to the Ministers

to be cont'd

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