impossible to fight. Hong Kong would then be placed at

a competitive disadvantage with its main competitors,

Korea and Taiwan, who have generally gained trade at

Hong Kong's expense where Hong Kong has lost

beneficiary status in individual products. Japan i s

likely to be

another beneficiary is Hong Kong were to

In 1984 about 16.1% of

be excluded from this scheme.

Hong Kong exports to the United States, or US$ 1.326

million, enjoyed GSP duty free status.

19.

Mr Brittan has been briefed to raise these

visit to Washington from 29

concerns

October.

during

30

20.

In the wider world, the renegotiations of the Multi Fibre Arrangement (MFA) will be a very important

is sue for Hong Kong. MFA aims at the orderly

development and expansion of international trade in

textiles and provides the

framework within which Hong

agreements

with

The current MFA will

Kong negotiates bilateral restraint

textile importing countries.

expire on 31 July 1986. Hong Kong

increasingly severe

term of the MFA,

treatment than other

and free market.

protectionist

has experienced

each successive

received worse

restrictions in

and generally has

suppliers, despite its own open

I t

in sentiments

yet again, lead to an even governing

current MFA

i s

thus concerned that

its major

could, markets

trade in

expires.

a

need for

another

more restrictive regime

textiles and clothing when the

if It therefore considers that,

term of the MFA,

the

there i s

restrictions should not be further

further intensified and Hong

11

Kong

should not

treatment than others.

1977 and 1981 to extend

Government

sought

Protect Hong Kong's

harsher

in

again be singled out for

In previous negotiations

the MFA, the Hong Kong

from HMG that

would

interests. On 9 May, Mr Channon, the Department of Trade, set out

the

assurance

Minister of State at

HMG's policy

on

future

of the

UK

MFA.

In

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