THURSDAY, MAY 29, 1980
FORGET THE MYTHS - AND FACE THE FACTS
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IN A HARD-HITTING SPEECH A HONG KONG INDUSTRIALIST, MISS LYDIA DUNN, TODAY (THURSDAY) TOLD A BRUSSELS INTERNATIONAL CONFERENCE ON TEXTILES: +WE DEPLORE THE WAY THE MULTI-FIBRE ARRANGEMENT HAS BEEN ABUSED. THE RULES WORKED OUT IN 1973 ARE NOW HONOURED MORE IN THE BREACH THAN IN THE OBSERVANCE. WHAT STARTED OFF AS A TEMPORARY BUT BALANCED INSTRUMENT IS NOW ASSUMING THE SHAPE AND SUBSTANCE OF A PERMANENT AND LOP-SIDED FIXTURE IN THE INTERNATIONAL TRADE IN TEXTILES.+
MISS DUNN WAS SPEAKING AT THE INTERNATIONAL CONFERENCE ON INTERNATIONAL TRADE IN TEXTILES AND CLOTHING UNDER THE MULTI-FIBRE ARRANGEMENT, BEING HELD FROM MAY 27 TO 29 IN BRUSSELS.
ALTHOUGH A MEMBER OF HONG KONG'S LEGISLATIVE COUNCIL, MISS DUNN, STRESSING THAT SHE SPOKE FOR THE TRADERS AND MANUFACTURERS AND NOT FOR THE HONG KONG GOVERNMENT, CONTINUED : +THE MFA IS BEING TRANSFORMED INTO AN INSTRUMENT OF DISCRIMINATION PRACTISED BY DEVELOPED COUNTRIES AGAINST DEVELOPING COUNTRIES. THERE HAS BEEN A SYSTEMATIC EROSION OF THE SPIRIT AND THE LETTER OF THE ARRAGEMENT.
+THE FACT THAT TEXTILE EXPORTS FROM DEVELOPING COUNTRIES HAVE BEEN PLACED UNDER RESTRICTIONS FOR THE PAST TWENTY YEARS IS SUFFICIENT EVIDENCE THAT DEVELOPED COUNTRIES HAVE FAILED TO RECOGNISE THEIR OBLIGATION TO MAKE STRUCTURAL ADJUSTMENTS, SHE SAID.
+AWARE THAT THEY ARE VULNERABLE, THE DEVELOPED COUNTRIES HAVE FORMULATED A NUMBER OF IDEAS WHICH, IF THEY GAIN CURRENCY, WILL NOT ASSIST IN AN OBJECTIVE APPRAISAL OF THE PROBLEMS TO BE FACED IN THE FORTHCOMING NEGOTIATIONS,+
MISS DUNN DEMOLISHED THE TWO OLDEST MYTHS USED AS REASONS FOR RESTRICTING IMPORTS FROM LOW COST SUPPLIERS - TO PRESERVE OR PROTECT THE DOMESTIC EMPLOYMENT SITUATION AND AS PROTECTION FROM UNFAIR, LOW-COST COMPETITION.
ON CHANGES IN EMPLOYMENT ARISING AS A RESULT OF IMPORT PENETRATION, SHE CHARGED IT IS ALL TOO EASY TO BLAME IMPORTS PARTICULARLY IMPORTS FROM DEVELOPING COUNTRIES. BUT ARE THEY REALLY TO BLAME? A NUMBER OF RECENT STUDIES HAVE POINTED TO IMPORTS BEING A RELATIVELY INSIGNIFICANT FACTOR IN CAUSING A FALL IN EMPLOYMENT, AND THAT THE MOST SIGNIFICANT FACTOR HAS BEEN INCREASED PRODUCTIVITY.
+MOREOVER, WHERE JOBS WERE LOST AS A RESULT OF EXTERNAL TRADE, IT HAS BEEN IMPORTS FROM DEVELOPED COUNTRIES, RATHER THAN IMPORTS FROM DEVELOPING COUNTRIES, WHICH ACCOUNTED FOR THE BULK OF THE LOSS,+ SHE SAID.
ON SO-CALLED +LOW-COST+ IMPORTS, MISS DUNN COMMENTED + WOULD CERTAINLY RESENT ANY SUGGESTION THAT THE COMPETITION WE OFFER FROM HONG KONG IS UNFAIR. OUR EXPORTS ARE NOT SUBSIDISED BY THE GOVERNMENT. WE DO NOT DUMP. HONG KONG HAS NO PROTECTED HOME MARKET. WHY THEN SHOULD OUR EXPORTS BE CONSIDERED AS CONSTITUTING UNFAIR COMPETITION? IT IS A FACT THAT CASH WAGES ARE LOWER IN HONG KONG AND IN OTHER MAJOR EXPORT CENTRES THAN IN THE DEVELOPED WORLD, BUT IS THAT NOT IN THE NATURE OF THINGS? WOULD YOU JUSTIFY RESTRAINTS ON BRITISH TEXTILES IN GERMANY OR BELGIUM BECAUSE OF THE VERY SUBSTANTIAL WAGE DIFFERENTIAL?+
/MISS
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