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implementation of the MFA, began its consideration of the future
of the Arrangement to decide whether it should be extended, modified
or discontinued.
As you know the Committee decided on 14 December
1977 that a Protocol should be opened for the extension of the
MFA for another four years until 1981, and Hong Kong has signed that
Protocol.
The Protocol was accompanied by a document which, whilst
exhorting participants in the MFA to respect its provisions, allows
"reasonable departures" from particular elements of it in particular
circumstances, on the understanding that those who depart should get
back in line as quickly as possible.
The fact that a participant in the MFA is thus licensed
to depart from its terms obviously changes the balance of advantage
in favour of the economically and politically strong and against
the economically and politically weak: the EEC and Hong Kong, to
pick an example at random.
This additional weighting of the balance of advantage
against the weaker and poorer countries was on the cards for many
months, and something which we in Hong Kong did all in our very
limited power to prevent. In concert with many other developing
countries, we pointed out the dangers not just for us developing
countries but for the developed countries as well.
This idea of waiving the rules to suit particular cases
marks a big step forward for the forces of protectionism. History
has shown that protectionism cannot be limited to actions by the
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strong against the weak; eventually the strong are forced to take
action against the strong as well. we have already seen the beginning
of this in the development of trade relations among the developed
countries.
/To