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THURSDAY, AUGUST 25, 1983
SINCE 1981, THE U.S. GOVERNMENT HAD APPLIED A +GRADUATION+ POLICY TO THE MAJOR GSP BENEFICIARIES, INCLUDING HONG KONG. THIS GAVE THE PRESIDENT POWER TO EXCLUDE A BENEFICIARY FROM GSP TREATMENT FOR A PRODUCT IN WHICH THAT BENEFICIARY WAS REGARDED AS BEING SUFFICIENTLY COMPETITIVE, EVEN IF THE BENEFICIARY HAD NOT REACHED THE COMPETITIVE NEED+ LIMIT.
MR CHAN SAID THAT HONG KONG HAD ALWAYS ACCEPTED THAT SOME PRODUCTS MIGHT HAVE TO BE EXCLUDED FROM THE SYSTEM TO PROTECT THE INTERESTS OF U.S. INDUSTRY.
+WE HAVE NEVER COMPLAINED ABOUT THE COMPETITIVE NEED CRITERION WHICH IS BASED ON OBJECTIVE - ALBEIT PERHAPS ARBITRARY YARDSTICKS,+ MR CHAN SAID.
+WE ARE MUCH LESS HAPPY ABOUT THE 'GRADUATION POLICY WHICH, IN OUR VIEW, CONTAINS AN ELEMENT OF DISCRIMINATION, AND WE HAVE MADE REPRESENTATIONS TO THE U.S. GOVERNMENT ABOUT THIS.
+ INSTEAD OF REMOVING THAT ELEMENT OF DISCRIMINATION. SOME MEMBERS OF THE U.S. CONGRESS ARE SUGGESTING THAT IT SHOULD BE MADE EVEN WORSE. THEY ARE SUGGESTING THAT HONG KONG SHOULD BE EXCLUDED FROM THE U.S. GSP ALTOGETHER. WE CANNOT ACCEPT THIS, + MR CHAN SAID,
THOSE WHO ADVOCATED HONG KONG'S TOTAL EXCLUSION ARGUED THAT HONG KONG WAS TOO ADVANCED AND TOO COMPETITIVE TO RECEIVE GSP TREATMENT, AND THAT GSP BENEFITS SHOULD BE CONCENTRATED MORE ON THE LESS-DEVELOPED BENEFICIARIES.
+THESE ARGUMENTS DO NOT STAND UP TO CRITICAL EXAMINATION. ALTHOUGH HONG KONG IS RELATIVELY MORE ADVANCED THAN MANY OTHERS IN THE DEVELOPING CAMP, IT IS NEVERTHELESS A DEVELOPING TERRITORY BY ALL THE INTERNATIONALLY ACCEPTED MEASURES OF ECONOMIC DEVELOPMENT, MR CHAN SAID.
+FOR EXAMPLE HONG KONG'S PER CAPITA GROSS DOMESTIC PRODUCT IS ONLY ABOUT HALF THAT OF JAPAN AND LITTLE MORE THAN ONE THIRD THAT OF THE U.S.+
MR CHAN POINTED OUT THAT IN THE CASE OF TEXTILE RESTRICTIONS, NO-ONE HAD EVER SUGGESTED THAT HONG KONG BE TREATED LIKE A DEVELOPED TERRITORY AND BE ALLOWED TO EXPORT WITHOUT ANY LIMITS.
+ IS HONG KONG TOO COMPETITIVE TO RECEIVE GSP TREATMENT ? IN SOME CASES, MAYBE, BUT WHERE WE ARE TRULY COMPETITIVE THE EXISTING RULES OF THE GSP ALREADY RESULT IN OUR EXCLUSION,+ MR CHAN SAID.
+THERE IS AMPLE EVIDENCE THAT, IN MANY PRODUCTS (INCLUDING SOME FOR WHICH IT IS CURRENTLY EXCLUDED FROM THE U.S. GSP), HONG KONG JUST CANNOT COMPETE IN THE U.S. MARKET WITHOUT THE HELP OF THE GSP.
/+AND HAS