WEDNESDAY, MAY 30, 1990
15
DEVELOPMENTS OVER MFN RENEWAL BEING MONITORED CLOSELY
IS MONITORING
THE ADMINISTRATION
CLOSELY DEVELOPMENTS CONCERNING THE UNITED STATES' RENEWAL OF MOST FAVOURED NATION (MFN) TRADING STATUS FOR CHINA AND WILL CONTINUE TO UNDERTAKE SUCH LOBBYING ACTIVITIES AS ARE NECESSARY, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
IN A WRITTEN REPLY TO A QUESTION FROM THE HON POON CHI-FAI, SIR PIERS POINTED OUT THAT, AS MEMBERS WERE AWARE, PRESIDENT BUSH HAD ANNOUNCED ON MAY 24 HIS DECISION TO EXTEND MFN STATUS ΤΟ CHINA FOR ANOTHER YEAR.
"SOME SENATORS AND CONGRESSMEN HAVE CRITICISED THIS DECISION AND MAY SEEK TO OVERTURN IT.
"PRESENT INDICATIONS ARE THAT THERE IS INSUFFICIENT SUPPORT IN CONGRESS FOR SUCH A MOVE TO SUCCEED.
"NEVERTHELESS, THERE REMAINS A RISK, SMALL THOUGH IT MAY BE, OF THE U.S. WITHDRAWING MFN TREATMENT FOR CHINA,' SIR PIERS SAID.
1
THE FINANCIAL SECRETARY SAID THE ADMINISTRATION ESTIMATED THAT, IN THE NOW UNLIKELY EVENT OF CHINA'S MFN STATUS BEING WITHDRAWN, HONG KONG MIGHT LOSE HK$55-78 BILLION IN TRADE, HK$5-7 BILLION IN INCOME AND OVER 20,000 JOBS AS A DIRECT RESULT.
"THE LONG-TERM EFFECTS ARE MUCH MORE DIFFICULT TO QUANTIFY AND CANNOT, IN ANY CASE, BE ASSESSED ON A ONE-OFF BASIS.
"MUCH WOULD DEPEND ON HOW SUCCESSFULLY COMMUNITY ADJUSTS TO THE SITUATION, HE SAID.
"
HONG KONG'S BUSINESS
SIR PIERS SAID WITHDRAWAL BY THE U.S. OF MFN TREATMENT FOR CHINA WOULD BE A MAJOR CHANGE TO HONG KONG'S EXISTING BUSINESS ENVIRONMENT,
"THE PROCESS OF ADJUSTING ΤΟ SUCH A MAJOR CHANGR WOULD INEVITABLY BE PAINFUL," HE SAID.
SIR PIERS SAID THE ADMINISTRATION WAS ACTIVELY CONSIDERING, ON A CONTINGENCY BASIS, WAYS OF FACILITATING THAT ADJUSTMENT,
THESE WAYS MIGHT INCLUDE FURTHER STRENGTHENING OF THE GOVERNMENT'S ALREADY CONSIDERABLE EFFORTS IN HELPING HONG' KONG BUSINESSMEN TO OPEN UP NEW OR ALTERNATIVE MARKETS, AND REMOVING ANY CONSTRAINTS THAT MIGHT EXIST WITHIN THE SYSTEM ON HONG KONG MANUFACTURERS' ABILITY TO UNDERTAKE MORE OF THEIR PRODUCTION PROCESSES IN HONG KONG.
"OBVIOUSLY, THE GOVERNMENT COULD NOT PROVIDE A SHIELD AGAINST THE REALITIES OF CHANGES IN THE POLITICAL AND ECONOMIC ENVIRONMENT, WHICH ARE PART OF THE RISKS FACING BUSINESS ENTERPRISES EVERYWHERE; NOR DO WE WISH TO INTERFERE IN COMMERCIAL DECISIONS REACHED IN THE PRIVATE SECTOR.
то
AN
INTEREST TO
DO
"BUT, AS I STATED IN THIS COUNCIL ON MAY 23, 1990 IN REPLY A QUESTION FROM MR DAVID LI, THE GOVERNMENT WILL INTERVENE IN APPROPRIATE MANNER WHEN IT IS CLEARLY IN THE PUBLIC SO," SIR PIERS SAID.
/16
+