XN000022-1974-06-05 — Page 3

}

-

WEDNESDAY, JUNE 5, 1974

QUESTIONED THIS MORNING ABOUT MR. CALLAGHAN'S STATEMENT, THE SECRETARY FOR ECONOMIC SERVICES, MR. DEREK JONES, ALSO WARMLY WELCOMED THE INTENTION OF THE BRITISH GOVERNMENT TO SEEK A BETTER DEAL FOR HONG KONG IN THE EEC'S GENERALISED PREFERENCES ARRANGEMENT.

+I HOPE IT WILL BE UNDERSTOOD IN THE OTHER MEMBER STATES OF

THE COMMUNITY,+ HE SAID, THAT WHAT WE ARE SEEKING, WITH THE SUPPORT OF THE BRITISH GOVERNMENT, IS NOT SPECIAL ARRANGEMENTS WHICH WILL DISCRIMINATE IN HONG KONG'S FAVOUR, BUT RATHER THE REMOVAL OF DISCRIMINATION IN FAVOUR OF OUR CLOSE COMPETITORS WHICH IS ALREADY PROVING DAMAGING TO HONG KONG'S TRADE IN TEXTILES AND FOOTWEAR TO THE COMMUNITY.+

+OUR POSITION,+ MR. JONES CONTINUED, +IS THAT HONG KONG SHOULD BE ABLE TO TRADE ON FAIR AND EQUAL TERMS WITH ITS CLOSE COMPETITORS IN THE MARKETS OF THE WORLD. WE DO NOT ASK FOR SPECIAL FAVOURS. AND WE ACCEPT THAT SPECIAL TREATMENT IS ACCORDED TO COUNTRIES AND TERRITORIES ASSOCIATED WITH THE COMMUNITY AND THAT THE NEEDS OF THE LEAST DEVELOPED AMONG THE DEVELOPING COUNTRIES REQUIRE PARTICULAR CONSIDERATION. BUT WE DO NOT ACCEPT AS REASONABLE A POSITION IN WHICH BRITAIN IS REQUIRED BY COMMUNITY ARRANGEMENTS TO ACCORD BETTER TREATMENT TO COUNTRIES WHO HAVE NO TIES WITH THE COMMUNITY, AND WHO ARE CLOSE COMPETITORS OF HONG KONG, THAN SHE IS PERMITTED TO EXTEND TO HONG KONG WHICH IS, AFTER ALL, HER OWN DEPENDENT TERRITORY.+

MR. CALLAGHAN'S STATEMENT WAS ALSO WELCOMED BY INDUSTRIAL LEADERS.

MR. LEN DUNNING, EXECUTIVE DIRECTOR OF THE TRADE DEVELOPMENT COUNCIL COMMENTED:

+THE TRADE DEVELOPMENT COUNCIL IS VERY HEARTENED BY MR. CALLAGHAN'S STATEMENT IN LUXEMBOURG. THE T.D.C. HAS BEEN PRESSING FOR A REVIEW OF THIS INIQUITOUS SITUATION WHERE WE ARE BEING DISCRIMINATED AGAINST IN OUR HOME COUNTRY. FRENCH EX-COLONIAL TERRITORIES HAVE BEEN WELL TREATED BY THE EEC AND, IN OUR VIEW, HONG KONG DESERVES NO LESS.

+THE ACTION COMMITTEE ON EEC GSP CONVENED BY THE T.D.C. HAS EXPRESSED GREAT RELIEF AND PLEASURE AT THE NEWS OF BRITAIN'S SUPPORT FOR OUR INDUSTRY.+

THE HON. ANN TSE-KAI, SPEAKING FOR THE FEDERATION OF HONG KONG INDUSTRIES AND ALSO AS A TEXTILE INDUSTRIALIST, SAID:

+MR. CALLAGHAN'S STATEMENT IS MOST OPPORTUNE, AND WILL BE VERY WELL RECEIVED IN HONG KONG. I AM DELIGHTED THAT THE BRITISH GOVERNMENT WILL CLEARLY NEGOTIATE A BETTER DEAL FOR HONG KONG IN THE EEC. THE GRADUAL LOSS OF COMMONWEALTH PREFERENCE AND THE APPLICATION OF A REVERSE PREFERENCE AGAINST OUR TEXTILES IN BRITAIN AND THE REST OF THE EEC IS ALREADY ADVERSELY AFFECTING THE TEXTILE INDUSTRY AND TRADE. ANYTHING BRITAIN CAN DO TO REMOVE THE DISCRIMINATION AGAINST US IN EUROPE WILL DIRECTLY ASSIST OUR ECONOMY+.

MR. A. ISMAIL, EXECUTIVE DIRECTOR OF THE FEDERATION OF HONG KONG INDUSTRIES. WAS DELIGHTED WITH THE NEWS.

/+TE FEDERATION