WEDNESDAY, OCTOBER 5, 1983
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+THE GOVERNMENT IS NOW ASSESSING THE VIABILITY OF THE PROJECT AND THE LIKELY INTEREST OF THE PRIVATE SECTOR IN PARTICIPATION IN THE PROJECT,+ SIR EDWARD SAID.
IF THE RECOVERY OF THE WORLD ECONOMY IS MAINTAINED, HONG KONG IS WELL PLACED TO TAKE ADVANTAGE OF THE RESULTING INCREASED OPPORTUNITIES FOR TRADE, HE SAID.
BUT HE ADDED THAT THE WORLD ECONOMIC RECESSION HAD GENERATED PRESSURES FOR INCREASED PROTECTIONISM,
+FORTUNATELY FOR HONG KONG, ATTEMPTS TO WEAKEN THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND TO ALLOW THE SELECTIVE RESTRAINT OF IMPORTS MADE NO HEADWAY AT THE 1982 MINISTERIAL MEETING OF THE GATT,+ HE SAID.
ON THE CONTRARY, THE MEETING REAFFIRMED THE SUPPORT OF GOVERNMENTS FOR AN OPEN TRADING SYSTEM AS ESSENTIAL TO WORLD ECONOMIC RECOVERY.
ONE SPECIFIC RESULT OF THIS MEETING WAS THE DECISION THAT THE GATT SECRETARIAT SHOULD CONDUCT AN URGENT STUDY OF THE PROBLEMS RELATING TO TRADE IN TEXTILES AND CLOTHING, SIR EDWARD NOTED.
THE MULTI-FIBRE AGREEMENT, UNDER WHICH HONG KONG'S EXPORTS OF THESE PRODUCTS ARE LIMITED BY BILATERAL RESTRAINT AGREEMENTS, REPRESENTED A DEROGATION FROM THE PRINCIPLES OF THE GATT, HE SAID.
THE MAIN OBJECTIVE OF THE STUDY, DUE FOR COMPLETION IN 1984, IS TO EXAMINE THE POSSIBILITY OF LIBERALISATION, AND THE EVENTUAL REMOVAL OF ALL DISCRIMINATORY RESTRAINTS FROM THIS SECTOR OF WORLD TRADE, HE SAID.
ON THE NEW TEXTILES AGREEMENT WITH THE EUROPEAN ECONOMIC COMMUNITY, SIR EDWARD SAID THAT ALTHOUGH MORE RESTRICTIVE THAN THE PREVIOUS AGREEMENT, IT WAS A SUBSTANTIAL IMPROVEMENT+ ON THE TERMS ORIGINALLY DEMANDED BY THE EEC.
+BROADLY, THE AGREEMENT ALLOWS HONG KONG TO MAINTAIN EXISTING LEVELS OF TRADE, BUT THE REDUCED GROWTH RATE PERMITTED UNDER THE AGREEMENT WILL MEAN THAT, WHEN ECONOMIC ACTIVITY AND DEMAND IN THE EUROPEAN ECONOMIC COMMUNITY PICK UP, HONG KONG'S ABILITY TO INCREASE ITS EXPORTS TO MEET THE HIGHER DEMAND WILL BE RESTRICTED.
+HOWEVER, THE TERMS WERE THE BEST AVAILABLE TO HONG KONG IN THE CIRCUMSTANCES, HE SAID.
TO DERIVE MAXIMUM BENEFIT FROM ITS TEXTILE AGREEMENTS, IT IS IMPORTANT FOR HONG KONG TO HAVE AN EFFICIENT TEXTILE QUOTA SYSTEM.
SIR EDWARD SAID THAT A REVIEW HAD CONCLUDED THAT THE PRESENT TEXTILE EXPORT CONTROL SYSTEM HAD GENERALLY SUCCEEDED IN ENSURING THAT HONG KONG MADE FULL USE OF ITS EXPORT RESTRAINT LIMITS.
+SOME CHANGES HAVE, HOWEVER, BEEN PROPOSED TO THE ADMINISTRATION OF THE SYSTEM TO ACHIEVE A FAIRER ALLOCATION OF QUOTA AND TO DETER SPECULATION.
+THE RECOMMENDATIONS HAVE RECENTLY BEEN ACCEPTED BY THE EXECUTIVE COUNCIL, AND ARE NOW BEING BROUGHT INTO EFFECT,+ HE SAID.
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