kept at a low rate, it is imperative that legislation should be reinforced so that the Inland Revenue Department would be able to collect taxes which might otherwise escape payment through loopholes in the law. The objectives outlined by the Financial
I look Secretary appear to be both reasonable and feasible. forward to the introduction of the proposed legislation in this
Council.
The proposed legislation may not please everyone.
That would There is bound to be criticism and even opposition. be healthy and the Administration would be well advised to heed
The freedoms and the criticism where it is constructive.
rights that we enjoy must be jealously guarded and upheld.
Protectionism
the
I would like now to turn to a related issue
As Hong Kong is growing trend towards protectionism. vulnerable to external factors, the recent unilateral action by the US Govenment over the country of origin rules in respect of knitwear must be viewed with the utmost concern.
Although the
US rules are out of balance with international opinion, the United States have so far shown no inclination whatsoever to make any concession. In terms of macro-economics, if a country's currency is strong, there is a strong temptation to
Since the US dollar is likely to adopt protectionist measures. remain strong in 1985, we must brace ourselves for a difficult year ahead.
In the meantime, no efforts should be spared in finding a solution to an intractable problem, which leaves us with few options. The appeal by the Joint Committee of Hong Kong Knitwear Associations deserves support and merits careful consideration.
As members are aware, a bill is now before the US Congress, which, if passed, would be a fresh blow to textiles. The bill seeks to impose quota restrictions on all textile items, including those not covered by the Multi-Fibre