7

THIS POINT TODAY, OTHER THAN TO SAY THAT THE

REGULATIONS HAVE DISRUPTED LEGITIMATE TRADE UNDER OUR

BILATERAL AGREEMENT, AND HAVE CAUSED MUCH HARDSHIP TO

OUR KNITWEAR INDUSTRY. WE HOPE THAT THE UNITED STATES

WILL RESPOND FAVOURABLY BEFORE LONG TO OUR

REPRESENTATIONS WITHIN THE SPIRIT AND THE LETTER OF OUR

BILATERAL AGREEMENT AND THE MFA.

14.

IN THIS CONTEXT, WE WERE ENCOURAGED BY THE US

GOVERNMENT'S DECISION TO CONTINUE TO ACCEPT HONG KONG

AS A BENEFICIARY OF THE UNITED STATES GENERALISED

SYSTEM OF PREFERENCES UNDER THE RECENTLY ENACTED TRADE

AND TARIFF ACT. THIS STATUS IS IMPORTANT TO US. IN

1983 ABOUT US$1.1 BILLION WORTH OF IMPORTS FROM HONG

KONG BENEFITTED FROM THE GENERALISED SYSTEM OF

PREFERENCES. THERE ARE PROVISIONS IN THE ACT REQUIRING

THE PRESIDENT OF THE UNITED STATES TO MAKE A

HONG

COMPREHENSIVE REVIEW OF THE PRODUCTS AND IMPORTS FROM

BENEFICIARY TERRITORIES UNDER THIS NEW SYSTEM.

KONG WILL GIVE ITS FULL COOPERATION TO ANY SUCH REVIEW,

15.

THE UNITED STATES IS ALSO THE LARGEST SOURCE

OF OVERSEAS INVESTMENT IN HONG KONG'S MANUFACTURING

INDUSTRY, ACCOUNTING FOR 54 PER CENT OF THE TOTAL.

THERE ARE 130 FACTORIES IN HONG KONG WHOLLY OR PARTLY

OWNED BY US INTERESTS. THESE FACTORIES EMPLOY 39,700

WORKERS, REPRESENTING OVER 4% OF OUR INDUSTRIA!

/WORKFORCE

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