HONG KONG LEGISLATIVE COUNCIL — 14 March 1984

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SECRETARY FOR DISTRICT ADMINISTRATION:-Sir, all members of fire-watch s are volunteers, and they are not covered by the Employees Compensation Ordinance as such. But nevertheless, if there were an accident I am sure the interests of the individual fire-watch members would be taken care of.

Traffic lights at junction of Pottinger Street and Queen's Road Central

2. MR. CHAN KAM-CHUEN asked:-Will Government consider installing a traffic light at the junction of Pottinger Street and Queen's Road Central which would synchronize with westbound traffic along Queen's Road?

SECRETARY FOR TRANSPORT: Sir, I am grateful to Mr. CHAN for raising this matter, because this junction, following the introduction of the Central Traffic Management Scheme over the past 18 months, has been noted as a problem.

Traffic lights are therefore to be installed at the junction of Pottinger Street and Queen's Road Central. Work is scheduled to begin later this month, and should be completed within about three months.

French restrictions on Hong Kong products

3. MR. TIEN asked:-Further to my question in this Council two years ago, will Government make an updated statement on the action which Hong Kong may take in the event that France fails to follow the GATT's recent favourable recommen- dations in regard to the export of quartz watches from Hong Kong to France?

Secretary FOR TRADE AND INDUSTRY: Sir, the GATT Panel's recommendation that France terminate the restrictions on eight Hong Kong products including quartz watches was adopted by the GATT Council at its meeting on 12 July 1983. Since then France has liberalized imports from Hong Kong of three of the products involved, retained one item under discriminatory surveillance though there is no formal quota limit, and increased the quotas for two others. This is not good enough as the items liberalized constitute only 1.5% of trade in all these eight items. Accordingly, action has been and will continue to be taken to press France to implement the Contracting Parties' recommendation in full. For instance, the Hong Kong representative has raised this issue at three subsequent meetings of the GATT Council-on 3 October, 1 November 1983 and 7 February 1984—and we are encouraged by the support we have received within the GATT Council.

As regards the most important of the eight items, quartz watches, the position has been complicated by an EEC study to determine whether there is a case for protection of the watch industry in the EEC. The study started in October 1983 and a preliminary report has been issued to Member States for comment. Hong Kong does not consider that a case exists for protection for France or elsewhere

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