WEDNESDAY, DECEMBER 18, 1974
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+THIS IN ITSELF MUST OF COURSE CAST SOME DOUBT ON THE VALIDITY OF THE EARLIER PROPOSALS AND INDEED OF THE PROPOSALS THAT THE CONFERENCE NOW INTENDS TO IMPLEMENT.+
EARLIER ON, BOTH DR. CHUNG AND MR. TIEN POINTED OUT THAT THE 18 PERCENT-INCREASE IN FREIGHT RATES, WHICH WILL COME INTO EFFECT ON JANUARY 1 NEXT YEAR, WOULD JEOPARDISE HONG KONG'S OVERSEAS TRADE.
IN MAKING THE PLEA, DR. CHUNG SAID THE INCREASE WOULD ADVERSELY AFFECT THE COMPETITIVE POSITION OF SOME OF HONG KONG'S PRODUCTS IN WESTERN EUROPE.
FOR MANY HONG KONG PRODUCTS SUCH AS PLASTIC TOYS, FREIGHT CONTRIBUTED 30 TO 40 PERCENT OF THE CIF PRICES. THE FREIGHT CONTENT FOR PLASTIC HOUSEWARES WAS EVEN HIGHER, BEING AT TIMES AS HIGH AS 45 TO 55 PERCENT, HE SAID.
DR. CHUNG THEN POINTED TO THE INEQUITIES IN BASIC FREIGHT RATES AND SURCHARGES AS APPLIED TO HONG KONG.
THE BULK OF HONG KONG GOODS, HE SAID, ATTRACTED THE MUCH HIGHER BASIC RATES OF $250-350 PER TON, WITH THE BUNKER SURCHARGE CALCULATED AS A PERCENTAGE OF THE BASIC RATE AND NOT AS A FLAT RATE ADDITION.
HE EXPLAINED THAT AS THE BULK OF HONG KONG EXPORTS WERE HIGHER RATES CARGOES, HONG KONG BEARS A DISPROPORTIONATELY LARGE SLICE OF THE EXTRA COST OF FUEL.+
DR. CHUNG STRESSED THAT THE CONFERENCE HAD A VIRTUAL MONOPOLY OF SEA FREIGHT BETWEEN HONG KONG AND EUROPE AND WAS THUS IN A POSITION TO DICTATE TERMS AND RATES TO HONG KONG SHIPPERS.
HE NOTED THAT THE TOTAL FREIGHT RATES PAID BY LOCAL SHIPPERS FOR GOODS SHIPPED TO THE UNITED KINGDOM AND EUROPE AMOUNTED TO SOME $700 MILLION IN THE LAST 12 MONTHS.
+WHEN MONOPOLIES EXIST AND AFFECT VITAL INTERESTS, I BELIEVE GOVERNMENT HAS AN OBLIGATION TO TAKE APPROPRIATE ACTION WITHIN ITS POWER TO PROTECT THE PUBLIC INTEREST,+ HE SAID, EMPHASISING THAT HONG KONG HAD DEVELOPED AND FLOURISHED MAINLY ON THE PRINCIPLE OF FREE AND FAIR COMPETITION.
CITING JAPAN AND AUSTRALIA AS EXAMPLES WHERE LEGISLATIVE CONTROL IS EXERTED ON SHIPPING CONFERENCES, DR. CHUNG URGED THE GOVERNMENT TO CONSIDER PROVIDING SOME +APPROPRIATE STATUTORY MUSCLE+ TO PROTECT HONG KONG'S INTERESTS SO THAT +SHIPPING MONOPOLIES SHOULD NOT BE ALLOWED TO THREATEN THE ECONOMIC AND SOCIAL FABRIC OF OUR COMMUNITY.+
/ECHOING
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