TUESDAY, AUGUST 20, 1985
HK SEEN AS TARGET FOR U.S. PROTECTIONISM
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DESPITE OPERATING A COMPLETELY OPEN ECONOMY AND DOING WHAT SUCCESSIVE AMERICAN ADMINISTRATIONS HAVE PREACHED, HONG KONG SEEMS TO BE THE TARGET FOR U.S. PROTECTIONIST MOVÉS, A GROUP OF VISITING CONGRESSMEN WAS TOLD TONIGHT (TUESDAY) BY THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO.
MR HO WAS SPEAKING AT A DINNER HE HOSTED FOR CONGRESSMAN SAM GIBBONS AND DELEGATION AT THE ROYAL HONG KONG JOCKEY CLUB.
REFERRING TO THE PROTECTIONIST JENKINS BILL MR HO SAID: +WE AND OTHER DEVELOPING COUNTRIES ARE DISMAYED AND ALARMED BY THE BILL, WHICH WE BELIEVE TO BE IN NO-ONE'S INTEREST, LEAST OF ALL THE UNITED STATES.+
+THE PROPONENTS OF THE BILL CLAIM THAT IT IS SIMPLY AN ENFORCEMENT MEASURE WHICH ACCORDS WITH THE UNITED STATES' RIGHTS AND OBLIGATIONS UNDER THE MFA. THIS IS NOT SO, HE SAID.
+ THE BILL IS IN CONFLICT WITH THE GATT, THE MFA AND WITH BILATERAL AGREEMENTS BETWEEN THE U.S. AND MANY DEVELOPING COUNTRIES. IT IS DISCRIMINATORY (THE LIMITS WOULD NOT APPLY TO CANADA AND THE EEC), AND INDEED IF ENACTED IT WOULD EFFECTIVELY MARK THE END OF THE MULTILATERAL DISCIPLINE WHICH PRESENTLY GOVERNS THIS SENSITIVE AREA OF WORLD TRADE. IT WOULD EXACERBATE EXISTING FRICTIONS IN DEVELOPED-DEVELOPING COUNTRY RELATIONS. IT WOULD INVITE RAPID AND DAMAGING RETALIATION AGAINST U.S. EXPORTS. AND IT WOULD, BY LOGICAL EXTENSION, THREATEN. THE FABRIC OF WORLD TRADE GENERALLY,
+ IT WOULD CERTAINLY NOT FURTHER THE PROPOSAL, TO WHICH THE U.S. IS COMMITTED, OF LAUNCHING A MAJOR ROUND OF NEW TRADE NEGOTIATIONS TO HALT AND REVERSE THE SPREAD OF PROTECTIONISM.
+
MR HO TOLD THE VISITORS THAT IF DEVELOPING COUNTRIES COULD NOT EARN FOREIGN CURRENCY THEY COULD NOT SPEND IT ON IMPORTS NOR USE IT TO SERVICE THEIR DEBTS.
+ IT IS WORTH NOTING THAT ON 1983 FIGURES, DEVELOPING COUNTRIES PURCHASED MORE THAN US$75 BILLION WORTH, OR ABOUT 38 PER CENT, OF U.S. MERCHANDISE EXPORTS, EXCEEDING SUCH U.S. EXPORTS TO WESTERN EUROPE AND JAPAN COMBINED, HE SAID.
THE UNITED STATES WAS THE MAIN MOTIVE FORCE BEHIND THE MFA AND THE JENKINS BILL IS IN FUNDAMENTAL BREACH OF IT.
+ IT IS IRONIC THAT THE U.S. INDUSTRY SHOULD NOW DEMAND THAT THE U.S. BREAK INTERNATIONAL AGREEMENTS MADE IN RESPONSE TO THE INDUSTRY'S PRESSURE. FURTHER APPEASEMENT CAN ONLY BRING DISASTER
FOR ALL, HE SAID.
OTHER U.S. INTERESTS ARE BOUND TO BE ADVERSELY AFFECTED IF THE BILL IS ENACTED.
/+ONE LAUFLUTURING
E