WEDNESDAY, JUNE 30, 1982
6
HONG KONG TAKING LEGITIMATE STAND IN TEXTILE TALKS
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THE STAND TAKEN BY HONG KONG IN THE TEXTILE NEGOTIATIONS WITH THE EEC IS A LEGITIMATE DEFENCE OF OUR ESSENTIAL INTERESTS, THE DIRECTOR OF TRADE INDUSTRY AND CUSTOMS, MR BILL DORWARD TOLD THE LEGISLATIVE COUNCIL MEETING TODAY.
+ IN ANY NEGOTIATION+, HE SAID, +EVEN BETWEEN VERY UNEQUAL PARTNERS, DUE REGARD MUST BE HAD TO THE RIGHTS AND OBLIGATIONS OF EACH PARTY.+
IN REPLY TO QUESTIONS BY THE HON FRANCIS TIEN, MR DOWARD SAID THAT THE HONG KONG DELEGATION ACCEPTED THAT, ON THE EVIDENCE SHOWN, THE CONTINUATION OF RESTRAINTS ON 34 OF THE TOTAL NUMBER OF 45 CATEGORIES CONCERNED COULD BE CONSIDERED JUSTIFIED. EEC DEMANDS FOR CUTBACKS IN EIGHT CATEGORIES WERE, HOWEVER UNJUSTIFIED AND INCONSISTENT WITH THE TERMS OF THE MEA.
BOTH
+IN ALL BUT ONE INSTANCE, EEC IMPORTS FROM HONG KONG OF THESE EIGHT CATEGORIES OVER THE LIFE OF THE CURRENT AGREEMENT FROM JANUARY 1978 HAVE DECLINED, ON AVERAGE BY ABOUT 14 PER CENT. HONG KONG WAS NOT IN ALL CASES THE PRINCIPAL SUPPLIER, AND HONG KONG PRICES WERE IN SOME INSTANCES HIGHER THAN THOSE OF SIGNIFICANT SUPPLIERS WHICH WERE UNRESTRAINED, HE EXPLAINED.
AT THE NEGOTIATIONS, SAID MR DORWARD, THE EEC PRESENTED STATISTICAL DATA PURPORTING TO SUPPORT THEIR REQUEST THAT HONG KONG CONTINUE RESTRAINTS ON ALL THE PRODUCTS SUBJECT TO RESTRAINT UNDER THE CURRENT FIVE YEAR AGREEMENT WHICH EXPIRES IN DECEMBER 1982- AND ALSO TO SUPPORT THEIR CLAIM OF +UNIQUE PROBLEMS+ IN EIGHT CATEGORIES OF PRODUCTS WHERE THEY SOUGHT A 12 PER CENT CUTBACK ON THE EXISTING QUOTA LEVELS FOR THE FIVE APPAREL ITEMS, AND THE SUSPENSION OF ALL FLEXIBILITY PROVISIONS FOR THREE YARN AND FABRIC CATEGORIES. THEY ALSO PROPOSED THAT ANNUAL GROWTH RATES FOR THESE CATEGORIES BE REDUCED TO 0.1 PER CENT.
ON THE PROGRESS OF THE NEGOTIATION, MR DORWARD SAID THAT DISCUSSION OF GROWTH RATES AND FLEXIBILITY PROVISIONS WAS POSTPONED UNTIL THE QUESTION OF BASE LEVELS IS RESOLVED. THERE WAS, HOWEVER, SOME PROGRESS MADE ON TECHNICAL ASPECTS OF THE PROPOSED AGREEMENT.
HE STRESSED THAT HONG KONG WOULD CONTINUE TO MAINTAIN THAT A FIRST PRIORITY MUST ESTABLISH TO WHAT EXTENT, IF ANY, SPECIFIC EEC PROBLEMS ARE BEING ACTUALLY OR POTENTIALLY CAUSED BY IMPORTS FROM HONG KONG.
+WHERE THAT CAN BE ESTABLISHED, SOLUTIONS CAN BE FOUND, BUT ONLY SOLUTIONS CONSISTENT WITH THE MFA. THESE COULD LEGITIMATELY LEAD TO REDUCTIONS IN GROWTH AND FLEXIBILITY PROVISIONS, SUCH EXIGENCIES HAVING BEEN SPECIFICALLY ENVISAGED IN THE PROTOCOL OF EXTENSION OF THE MFA BUT NOT TO CUTBACK ON QUOTA LIMITS, + HE CONCLUDED.