"We are therefore passing our assessment to the US Government, together with a request that the US takes into account Hong Kong's interests in any decision it may take," he said.
The proposed list of products, which the US published on December 31, 1994 for public comment until January 30, 1995, includes such articles as electrical products, plastic articles, furniture items, ceramic household ware and footwear, with a total value of about US$2.8 billion.
As the US Trade Representative Ambassador Mickey Kantor has publicly stated that he would narrow down the list to products valued at about US$1 billion, the assessment of the impact on Hong Kong's economy has been made on the basis of US retaliatory action affecting about US$1 billion worth of Chinese exports to the US.
"Because of the punitive tariff, it is possible that up to 1.9 per cent or HK$3.7 billion (US$0.47 billion) of Hong Kong's re-exports from China to the US may be affected," the spokesman said.
"Taking into account the likely spill-over effects on other trading and economic activities, this could affect up to 3,800 jobs in Hong Kong and up to 0.1 of a percentage point of the GDP growth in the year of incidence."
He recognised nevertheless that the impact on specific sectors would vary depending on the rate of the punitive tariff and the amount of trade involved which goes through Hong Kong.
When asked about the Government's further action, the spokesman reiterated that the IPR negotiations between China and the US was a bilateral trade issue that should be resolved by the two sides through bilateral discussions.
"The Hong Kong Government does not have a direct role. Hong Kong traders could respond to the US Government's invitation for public comments. We have therefore been providing the trade with information and analyses for their reference. "Representatives of the Hong Kong Government would attend the public hearings in the US as observers and we will provide further assistance to the trade as may be appropriate."
Noting that China and the US have resumed talks on the issue, he remains hopeful that a satisfactory solution would be found and no retaliatory action would be taken.
End/Friday, January 20, 1995