WEDNESDAY, DECEMBER 22, 1982
17
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IMPLICATIONS OF SELECTIVE SAFEGUARDS TO HK'S FUTURE TRADE *****
THE SECRETARY FOR TRADE AND INDUSTRY, MR BILL DORWARD TODAY (WEDNESDAY) TOLD THE LEGISLATIVE COUNCIL THAT A SELECTIVE SAFEGUARDS CODE WOULD, IN THE HONG KONG GOVERNMENT'S VIEW, BECOME EFFECTIVELY AN MFA WRIT LARGE.
+THAT IS TO SAY, IT WOULD OPEN UO OPPORTUNITIES FOR DEVELOPED COUNTRIES TO APPLY THE KIND OF RESTRICTIONS WHICH BEAR MORE AND MORE HEAVILY UPON OUR TEXTILE INDUSTRY TO EACH AND EVERY AREA OF HONG KONG'S EXPORT TRADE. THE IMPLICATIONS OF THIS WILL BE IMMEDIATELY APPARENT.+
IN REPLY TO A QUESTION BY MR STEPHEN CHEONG, MR DORWARD SAID: +AFTER MANY YEARS OF EXPERIENCE AND DEBATE, HOWEVER, THE HONG KONG GOVERNMENT IS CONVINCED THAT ANY DEFINITION OF CRITERIA FOR DETERMINING INJURY IN A SELECTIVE SAFEGUARDS CODE WOULD INEVITABLY BE IMPRECISE AND OPEN TO INTERPRETATIONS WHICH COULD BE HIGHLY INIMICAL TO OUR TRADING INTERESTS.
+OUR EXPERIENCE IN TEXTILES WITH THE MFA - WHICH IS A SELECTIVE INSTRUMENT AND A SPECIFIC DEROGATION FROM GATT RULES HAS SHOWN THAT IT HAS BEEN USED BY DEVELOPED COUNTRIES SOLELY AGAINST DEVELOPING COUNTRIES.
+ IT IS OUR CONCERN THAT, WHATEVER GOOD INTENTIONS MIGHT BE EXPRESSED AT THE BEGINNING, A SELECTIVE SAFEGUARDS CODE WOULD ALSO DEGENERATE INTO AN INSTRUMENT WHOSE DISCIPLINES WOULD BE LESS AND LESS RESPECTED WHEN APPLIED BETWEEN UNEQUAL PARTNERS, HE REMARKED.
+HONG KONG HAS THEREFORE CONSISTENTLY OPPOSED THE CONCEPT OF SELECTIVE SAFEGUARDS AND, DESPITE CONSIDERABLE PRESSURE FROM DEVELOPED COUNTRIES, THE LEGISLATION OF THAT CONCEPT HAS BEEN SUCCESSFULLY RESISTED.
+HONG KONG HAS NOT, OF COURSE, BEEN ABLE TO DO THIS ALONE. THERE HAS BEEN CLOSE AND EFFECTIVE COOPERATION AND COORDINATION AMONG DEVELOPING COUNTRIES ON THIS ISSUE. IT WILL BE IMPORTANT TO CONTINUE THAT COOPERATION AND COORDINATION IN THE FUTURE, FOR WE HAVE NOT HEARD THE LAST OF SELECTIVE SAFEGUARDS.+
MR DORWARD FORECAST THAT IN THE COMING YEAR THE DEVELOPING COUNTRIES WOULD ONCE AGAIN BE BROUGHT UNDER HEAVY PRESSURE BY THE DEVELOPED COUNTRIES TO ACCEPT OR AT LEAST ACQUIESCE IN SELECTIVE SAFEGUARDS.
+AT THE GATT MINISTERIAL MEETING WHICH ATTENDED IN GENEVA LAST MONTH, THE DECISION WAS REACHED THAT THERE WAS A NEED FOR AN IMPROVED AND MORE EFFICIENT SAFEGUARD SYSTEM - NOT THAT THAT MEANS OR IMPLIES SELECTIVE SAFEGUARDS AND THAT AN UNDERSTANDING ON SUCH A SYSTEM SHOULD BE DRAWN UP FOR ADOPTION BY THE GATT CONTRACTING PARTIES NOT LATER THAN ITS NOVEMBER 1983 SESSION,+ HE SAID.
THE DISCLOSAD