9
WEDNESDAY, JULY 27, 1977
LEGCO GIVEN INDICATION OF WHAT'S IN STORE
IN HK-US TEXTILE AGREEMENT
******
THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY, THE HON, BILL DORWARD, TODAY GAVE AN INDICATION OF WHAT IS IN STORE IN THE HK-US TEXTILE AGREEMENT WHICH IS TO BE SIGNED SHORTLY.
MR. DORWARD, WHO WAS SPEAKING IN THE LEGISLATIVE COUNCIL, DISCLOSED THAT THE NEW AGREEMENT WOULD BE MORE RESTRICTIVE THAN THE CURRENT ONE, BUT POINTED OUT THAT IT CONTAINED SOME FEATURES WHICH COUNTERBALANCED THE NEGATIVE ONES.
HE ALSO SAID THAT THE NEW AGREEMENT WOULD RUN FOR FIVE YEARS.
OVERALL GROWTH RATES IN THE FIRST YEAR OF THE FIVE-YEAR AGREEMENT WOULD BE LOW BUT WOULD INCREASE SUBSTANTIALLY IN LATER YEARS, SAID MR. DORWARD.
FOR SOME SENSITIVE CATEGORIES THE SPECIFIC GROWTH RATES WOULD BE LOW THROUGHOUT BUT MR. DORWARD HINTED THAT, ALMOST WITHOUT EXCEPTION, THEY WERE HIGHER THAN 2.5 PERCENT.
MR. DORWARD APOLOGISED THAT HE COULD NOT BE MORE SPEC IF IC AT THIS STAGE. HE SAID HE WAS +ACUTELY CONSCIOUS+ OF THE FRUSTRATION IN BUSINESS CIRCLES AT THE DELAY IN ANNOUNCING THE TERMS OF THE NEW AGREEMENT. HE EXPLAINED THAT THIS WAS DUE TO MINOR TECHNICAL DIFFICULTIES FACED BY THE U.S. AUTHORITIES WHICH HAVE SO FAR DELAYED THE FORMAL SIGNING.
+ NOW EXPECT THIS TO TAKE PLACE VERY SOON, HE ADDED.
REFERRING TO HIS ANNOUNCEMENT LAST MONDAY ON A BRIDGING ARRANGEMENT TO COVER THE PERIOD BETWEEN THE EXPIRY OF THE PRESENT HK-US AGREEMENT ON SEPTEMBER 30 AND THE START OF THE NEW ONE ON JANUARY 1, 1978, MR. DORWARD SAID THIS HAS REMOVED SOME OF THE IMMEDIATE PROBLEMS FACED BY THE TRADE DUE TO UNCERTAIN- TIES+.
MR. DORWARD MADE SEVERAL POINTS IN RELATION TO THE CURRENT STATE OF THE DOMESTIC TEXTILES INDUSTRY.
HE SAID: +FIRST, AND MOST IMPORTANT, AT A TIME WHEN PROTECTIONIST VOICES ARE BEING LOUDLY HEARD AROUND THE DEVELOPED COUNTRIES, IT IS SALUTORY TO REMIND ALL CONCERNED THAT STRUCTURAL AND EMPLOYMENT PROBLEMS ARE NOT PECULIAR TO THOSE COUNTRIES- AND THAT, FURTHERMORE, THE SOCIAL CONSEQUENCES OF THOSE PROBLEMS ARE MUCH MORE ACUTELY FELT BY THE RELATIVELY POOR THAN BY THE RELATIVELY RICH.
+SECONDLY, I WOULD NOTE THAT WHILE THE HONG KONG INDUSTRY HAS UNDOUBTEDLY SUFFERED AS A RESULT OF PROTECTIONIST ACTIONS THE MAIN PROBLEMS THIS YEAR HAVE BEEN THE CONSEQUENCES OF SLACK DEMAND IN SUCH MAJOR MARKETS AS THE UNITED STATES, THE UNITED KINGDOM AND GERMANY. IT IS ONLY IN A VERY FEW ITEMS IN STRONG DEMAND THAT THE QUOTA LIMITS HAVE BEEN OF ANY SIGNIFICANCE AT ALL AND INDICATIONS ARE THAT THIS WILL REMAIN THE CASE FOR THE REST OF THIS YEAR.