XN000022-1975-01-08 — Page 4

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WEDNESDAY, JANUARY 8, 1975

H.K. TO SEEK BENEFICIARY STATUS

UNDER NEW AMERICAN GENERALISED SCHEME OF PREFERENCES

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HONG KONG INTENDS TO APPLY FOR DENEFICIARY STATUS TO EXPORT CERTAIN PRODUCTS DUTY FREE TO THE UNITED STATES UNDER A GENERALISED SCHEME OF PREFERENCES VITICH MAY BE SET UP UNDER THE NEW AMERICAN TRADE ACT.

THE DIRECTOR OF COMMERCE AND INDUSTRY, THE. IION. DAVID JORDAN, TOLD THE LEGISLATIVE COUNCIL, HOWEVER, THAT THE EFFECT OF SUCH A SCHEME COULD NOT YET DE AGÜESSED AS IT HAD NOT YET BEEN ANNOUNCED WHICH PRODUCTS WOULD BE HIGLUDED. HOWEVER, IT WAS KNOWN THAT ALL TEXTILES, AND CLOTHING AND MOST FOOTWEAR VOULD BE EXCLUDED, HE ADDED.

THE GENERALISED PREFERENCES SCHEME MAY BE SET UP UNDER ONE SECTION OF THE TRADE ACT TO PERMIT DUTY FREE ENTRY TO THE UNITED STATES OF CERTAIN PRODUCTS EXPORTED BY COUNTRIES AND TERRITORIES ACCORDED BENEFICIARY STATUS.

MR. JORDAN TOLD COUNCIL IN REPLY TO A QUESTION FROM THE HON. FRANCIS TIEN THAT FULL DETAILS OF THE NEW ACT WERE NOT YET AVAILABLE, BUT HONG KONG'S COUNSELLOR FOR COMMERCIAL AFFAIRS IN WASHINGTON HAD BEEN ASKED TO SEND A COPY OF THE NEW LAW AS SOON AS POSSIBLE.

IN VIEW OF THIS, M. JORDAN COULD NOT SAY AT THIS STAGE WHAT THE PRECISE EFFECTS VERE LIKELY TO DE O HONG KONG'S TRADE AND INDUSTRY.

COMMENTING GENERALLY, MR. JORDAN SAID THAT ACT AUTHORISES THE U.S. ADMINISTRATION TO NEGOTIATE REDUCTIONS IN TARIFFS AND OTHER OBSTACLES TO TRADE, AND THE GATT MULTILATERAL TRADE NEGOTIATIONS COULD NOW GET UNDER WAY.

HE EXPLAINED THAT THE AIN OF GATT TALKS WAS TO ACHIEVE FURTHER EXPANSION AND LIDERALISATION OF WORLD TRADE BY REDUCING TARIFFS AND OTHER TRADE BARRIERS.

+SINCE THE CONCESSIONS MADE IN THESE NEGOTIATIONS WILL BE MADE ON THE "MOST-FAVOURED-NATION' DASIS, THAT IS THEY MUST BE APPLIED TO ALL GATT MEMBERS WITHOUT DISCRIMINATION, HONG KONG WILL BENEFIT FROM THEM TOO, AS WE BENEFITTED FROM THE TRADE EXPANSION GENERATED BY THE TARIFF REDUCTIONS AGREED IN THE KENNEDY ROUND IN 1967, MR. JORDAN SAID.

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