MONDAY, JANUARY 9, 1978
4
HK-EEC TEXTILE DEAL COULD HAVE BEEN A LOT WORSE* ******
THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, MR. DAVID JORDAN, SAID TODAY THAT THE RECENTLY CONCLUDED TEXTILES AGREEMENT WITH THE EEC + IS A BAD AGREEMENT BUT THAT IT COULD HAVE BEEN A LOT WORSE+.
SPEAKING AT A LUNCHEON HOSTED TODAY (MONDAY) BY THE HONG KONG GENERAL CHAMBER OF COMMERCE, MR. JORDAN TOLD THE 400 GUESTS THAT HIS DEPARTMENT HAD BEEN ABLE TO PROVIDE MANUFACTURERS AND EXPORTERS WITH QUOTAS FOR 1978 ENABLING THEM TO SHIP AS MUCH AS THEY DID IN 1977 APART FROM A VERY FEW CATEGORIES.
IT WAS HONG KONG'S FUTURE POTENTIAL FOR TRADE THAT HAD BEEN REDUCED.
MR. JORDAN EXPLAINED THAT, BECAUSE 1977 WAS NOT A GOOD YEAR FOR HONG KONG'S TEXTILES EXPORTS TO THE COMMUNITY, THE IMMEDIATE EFFECT WOULD BE SMALL.
+ BUT OUR EXPORT OPPORTUNITIES FOR THE FUTURE, IF AND WHEN DEMAND SHOULD REVIVE, HAVE BEEN CONSIDERABLY REDUCED.+
NONE THE LESS, MR. JORDAN BELIEVED THAT THE MANY WEEKS OF TALKS IN BRUSSELS HAD NOT BEEN WASTED AS THE TERMS OF THE FINAL AGREEMENT WERE A GOOD DEAL BETTER THAN WHAT THE COMMUNITY WAS ORIGINALLY SEEKING FROM US.
HE SAID THAT THE EEC'S ORIGINAL DEMANDS INCLUDED RESTRAINTS ON FIBRES OTHER THAN COTTON, WOOL AND MAN-MADE FIBRES, SUCH AS FLAX.
+THEY STARTED WITH ABOUT 140 CATEGORIES AND WE FINISHED UP WITH 41 CATEGORIES WITH SPECIFIC LIMITS AND NO OVERALL LIMIT AND WITH RESTRAINTS COVERING ONLY COTTON, WOOL AND MAN-MADE FIBRE.+
MR. JORDAN POINTED OUT THAT INCREASING THE NUMBER OF CATEGORIES FROM THE PREVIOUS 24 TO 41 WILL REDUCE THE FLEXIBILITY OF MANUFACTURERS AND TRADERS. BUT EVEN SO HE SAID THIS STILL COMPARES QUITE FAVOURABLY WITH THE 37 LIMITS IN THE U.S. AGREEMENT NEGOTIATED IN JULY, AND THAT AGREEMENT INCLUDES AN OVERALL LIMIT AND INDIVIDUAL GROUP LIMITS.+
ONE OF THE MOST IMPORTANT RESULTS OF THE EEC NEGOTIATIONS WAS THAT HONG KONG SECURED 'EXPORT CONTROL OF QUOTAS, DESPITE THE COMMUNITY HAVING ORIGINALLY PRESENTED THE HONG KONG NEGOTIATING TEAM WITH WHAT AMOUNTED TO AN +IMPORT CONTROL AGREEMENT WITH SLIGHT TECHNICAL ASSISTANCE AT THE EXPORT END.+
+
BUT, MR. JORDAN TOLD THE CROWDED LUNCHEON MEETING, IT TOOK WEEKS TO SECURE WHAT SHOULD MORALLY BE OUR RIGHT IN THE FIRST PLACE. +
/5