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WEDNESDAY, JULY 27, 15′′-

*THIRDLY, AND FOLLOWING ON MY SECOND POINT, THE PATTERN OF OUR CURRENT TRADE GIVES THE LIE TO THOSE PROTECTIONIST CLAIMS THAT IMPORTERS' PROBLEMS WOULD DISSOLVE IF HONG KONG AND OTHER MAJOR SUPPLIERS WOULD ACCEPT A REDUCTION IN OUR NEGOTIATED MARKET ACCESS RIGHTS. THEY CONFUSE, EITHER ACCIDENTALLY OR DELIBERATELY, THE EXISTENCE OF ACCESS RIGHTS, OR QUOTAS AS THEY ARE MORE COMMONLY CALLED, WITH THE ACTUAL TRADE DONE,

MR. DORWARD POINTED OUT THAT THE MERE EXISTENCE OF QUOTAS, OR GROWTH RATES ON THEM, DOES NOT CAUSE DAMAGE TO DOMESTIC INDUSTRIES. BUT TO THOSE WHO MIGHT BE TEMPTED TO ARGUE THAT UNDER-UTILISATION OF QUOTAS CONSTITUTED A CASE FOR REDUCING THEIR LIMITS. I WOULD ANSWER, NO, IT CONSTITUTES A CASE FOR REMOVING THEM'+, HE SAID.

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ON OUR AGREEMENT WITH THE EEC WHICH RUNS OUT AT THE END OF THIS YEAR, MR. DORWARD SAID HE EXPECTED THAT NEGOTIATIONS WITH THE COMMUNITY TO DETERMINE FUTURE ARRANGEMENTS WOULD COMMENCE IN LATE SEPTEMBER. HE PREDICTED THAT THESE WOULD NOT BE EASY, PARTICULARLY AS REGARDS THE QUESTION OF GROWTH.

THE EEC HAS ALREADY INDICATED PUBLICLY THAT THERE ARE SEVEN CATEGORIES OF TEXTILES WHICH ARE PARTICULARLY SENSITIVE AND WHERE THEY WILL BE SEEKING GROWTH RATES LOWER THAN SIX PER CENT PROVIDED FOR IN THE PRESENT MULTI-FIBRE ARRANGEMENT.

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MR. DORWARD POINTED OUT +UNDER THE PRESENT AGREEMENT BETWEEN HONG KONG AND THE EEC, ANNUAL GROWTH ON UK QUOTA LIMITS FOR ALL OF THESE ITEMS BAR ONE IS ONE HALF OF ONE PERCENT AND FOR THE OTHER ITEM IT IS ABOUT THREE AND A HALF PER CENT, FOR GERMANY, THE FIGURES FOR THE ONLY FIVE CATEGORIES WHERE THERE IS ANY SIGNIFICANT TRADE RANGE BETWEEN 0.5 AND 2.3 PER CENT. AND FOR THE COMMUNITY AS A WHOLE THE ANNUAL GROWTH RANGES FROM 2.5 PER CENT FOR FIVE OF THE

ITEMS TO 7 PER CENT FOR THE OTHER TWO+,

HE CONCLUDED THAT THERE IS LITTLE SCOPE FOR REDUCTION THERE.+

ON THE FUTURE OF THE MFA, MR. DORWARD SAID THAT, BECAUSE OF THE CONFIDENTIAL NATURE OF THE TEXTILE COMMITTEE'S DISCUSSION, HE COULD NOT RECOUNT THE MANY SHIFTS AND TURNS WHICH THE NEGOTIA– TIONS, BOTH FORMAL AND INFORMAL, HAVE RECENLY TAKEN IN GENEVA,+

BUT HE INDICATED THAT A GROUP OF PARTICIPANTS INCLUDING HONG KONG, WHO BETWEEN THEM REPRESENT 85 PERCENT OF WORLD TRADE IN TEXTILES, REACHED A CONSENSUS LAST SUNDAY, ALTHOUGH IT MAS NOT POSSIBLE FOR THE TEXTILES COMMITTEE AS A WHOLE TO AGREE.

+ THE PARTIAL CONSENSUS WAS ON A COMPLEX FORM OF WORDS AGREEING AMONGST OTHER THINGS A FLEXIBLE APPROACH TO FUTURE NEGOTIATIONS WITHIN THE FRAMEWORK AND IN ACCORDANCE WITH THE PROVISIONS OF A RENEWED AND UNCHANGED MFA+, MR. DORWARD SAID,

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+1 SHALL BE PUTTING THE TERMS AS AGREED BETWEEN THE NEGOTI-TOR, BEFORE THE TEXTILES ADVISORY BOARD LATER THIS WEEK SO THAT, ON THE BASIS OF THEIR ADVICE, I CAN MAKE A RECOMMENDATION AS TO WHETHER THE HONG KONG GOVERNMENT SHOULD STAND READY TO SIGN A PROTOCOL, INCORPORATING THESE TERMS, WHICH WILL BE OPENED LATER IN THE YEAR TO PROVIDE FOR THE EXTENSION OF THE PFA+, MR. DORWARD ADDED.

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