TUESDAY, JUNE 25, 1985
6
+WE ARE GIVING THIS MATTER THE HIGHEST PRIORITY+, SAID
MR MACLEOD, +MUCH OF MY TIME AND THAT OF OTHER SENIOR OFFICIALS OF THE TRADE DEPARTMENT IS SPENT ON THE FIGHT AGAINST THIS BILL. IN RECENT WEEKS WE HAVE GIVEN SPECIAL BRIEFINGS TO BODIES SUCH AS THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG AND WE HAVE CALLED ON MAJOR AMERICAN MULTINATIONAL COMPANIES WITH BASES IN THE TERRITORY. LOCAL TRADERS AND INDUSTRIALISTS HAVE BEEN KEPT INFORMED OF ALL DEVELOPMENTS THROUGH CHAMBERS OF COMMERCE AND THROUGH THE TEXTILES ADVISORY BOARD.+
MR MACLEOD SAID THAT IT MUST BE RECOGNISED, AND HAD BEEN CONFIRMED BY RECENT US VISITORS, THAT THE MOST EFFECTIVE METHOD OF FIGHTING THE BILL WAS BY EFFORTS OF DOMESTIC US INTERESTS, SUCH AS RETAILERS. THIS WAS NOT A BILATERAL ISSUE BETWEEN THE US AND HONG KONG AND IT WAS NOT NECESSARILY IN THE TERRITORY'S INTERESTS TO ADOPT A HIGH PROFILE ON THIS ISSUE.
+WE HAVE FOUGHT VERY HARD IN RECENT MONTHS AND A NEW INITIATIVE IN COOPERATION WITH OTHER EXPORTING COUNTRIES IS LIKELY TO FOLLOW SOON,+ SAID MR MACLEOD.
HE SAID THAT THE US GOVERNMENT'S ACTION IN SENDING THE LETTER OF OPPOSITION TO MEMBERS OF CONGRESS WAS A MAJOR BREAKTHROUGH.
THE LETTER SAYS THAT THE LEGISLATION, IF ENACTED, WOULD IMPOSE A VERY HIGH COST ON US CONSUMERS, INVITE RETALIATION AGAINST US EXPORTS, SPUR INFLATION, VIOLATE INTERNATIONAL OBLIGATIONS AND PROVIDE THE DOMESTIC TEXTILE AND APPAREL INDUSTRY WITH. AN UNPRECEDENTED LEVEL OF PROTECTION.
THE LETTER IS SIGNED BY SECRETARY OF STATE, MR GEORGE SHULTZ, SECRETARY FOR THE TREASURY, MR JAMES BAKER, SECRETARY FOR COMMERCĒ, MR MALCOM BALDRIDGE, SECRETARY FOR LABOUR, MR WILLIAM BROOK, AND DEPUTY US TRADE SECRETARY, MR MICHAEL SMITH.
IT POINTS OUT THAT US EXPORTS TO THE 12 SUPPLIERS WHO WOULD BE MOST IMMEDIATELY AFFECTED BY THE PROPOSED IMPORT RESTRICTIONS TOTALLED MORE THAN US$33 BILLION LAST YEAR. THE INTERNATIONAL MULTI-FIBRE ARRANGEMENT WOULD BE VIOLATED AS WOULD 34 BILATERAL TEXTILE AND APPAREL AGREEMENTS. MORE THAN 300 QUOTAS HAVE BEEN ESTABLISHED SINCE 1981 TO PROTECT THE US TEXTILE INDUSTRY. TEXTILE AND APPAREL IMPORTS HAVE BEEN DECLINING THOSE FROM THE LESS-DEVELOPED COUNTRIES.
-
PARTICULARLY
+THIS LETTER IS THE CONSIDERED VIEW OF THE RELEVANT MEMBERS OF THE UNITED STATES CABINET,+ SAID MR MACLEOD, AND IT SHOWS THAT THE US ADMINISTRATION FULLY APPRECIATES THE DANGERS INHERENT IN THIS BILL.-
A KEY ROLE IS BEING PLAYED BY THE HONG KONG OVERSEAS OFFICES IN NEW YORK, WASHINGTON AND GENEVA. SENIOR OFFICIALS INCLUDING THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO, ARE PERSONALLY CARRYING THE MESSAGE ON VISITS TO THE US.
+THIS IS A BAD BILL - BAD FOR THE UNITED STATES, BAD FOR HONG KONG AND BAD FOR THE WORLD TRADING SYSTEM AND WE SHALL CONTINUE TO DO EVERYTHING POSSIBLE TO COUNTER IT, SAID MR MACLEOD.
17