3
THURSDAY, MARCH 4, 1976
JORDAN COMMENTS ON QUOTA ALLEGATIONS
******
THE BASIC FACT ABOUT HONG KONG'S TEXTILE QUOTA PROBLEM IS THAT IN MANY CATEGORIES, THE DEMAND FOR HONG KONG TEXTILE GARMENTS IN THE UNITED STATES AND IN WESTERN EUROPE IS GREATER THAN THE TOTAL QUOTA AVAILABLE, THE DIRECTOR OF COMMERCE AND INDUSTRY, MR. DAVID JORDAN, SAID IN A TELEVISION AND RADIO INTERVIEW TONIGHT.
MR. JORDAN WAS ASKED ABOUT NEWSPAPER REPORTS WHICH SAID THAT HONG KONG WAS +LOSING MILLIONS THROUGH ITS TEXTILES QUOTA SYSTEM, + AND ALLEGED THAT THERE WAS +CONFUSION OVER THE QUOTA SITUATION=+ AND THAT HONG KONG WAS PRICING ITESELF OUT OF THE MARKET BECAUSE OF HIGH QUOTA PRICES.
MR. JORDAN SAID THE DIFFICULTIES AROSE NOT FROM THE QUOTA SYSTEM BUT FROM THE FACT THAT DEMAND WAS MUCH GREATER.
HE ADDED: +TO PUT IT ANOTHER WAY, IT WOULDN'T MATTER REALLY WHAT SYSTEM WE HAVE FOR DISTRIBUTING QUOTA- IF IT'S NOT ENOUGH TO ENABLE ALL THE BUYERS TO BUY WHAT THEY WANT TO BUY, THERE ARE BOUND TO BE PEOPLE WHO CANNOT GET WHAT THEY WANT.+
ON THE QUESTION OF HONG KONG PRICING ITSELF OUT OF THE MARKET, HE SAID THIS COULDN'T HAPPEN, OF COURSE, IF DEMAND IS GREATER THAN SUPPLY, AND SUPPLY IS LIMITED, THE PRICE WILL GO UP IN A FREE ECONOMY LIKE OURS, HE SAID.
+BUT IF IT GOES UP TO THE POINT WHERE DEMAND FALLS OFF THEN THE PRICE WILL COME DOWN AGAIN. THESE ARE THE BASIC FACTS ABOUT THIS BUSINESS,+
ASKED WHETHER A NEW QUOTA SYSTEM COULD HELP MATTERS, MR. JORDAN REPLIED THAT HE THOUGHT THE SYSTEM COULD BE IMPROVED, AND THAT WAS WHY THE COMMERCE AND INDUSTRY DEPARTMENT WAS IN THE MIDDLE OF A REVIEW OF IT. BUT HE WARNED THAT REVISING THE SYSTEM WOULDN'T PRODUCE MORE QUOTA.
HE CONTINUED: THE AGREEMENTS THAT WE'VE MADE ARE MADE UNDER THE INTERNATIONAL ARRANGEMENT FOR TEXTILES WHICH PROVIDES FOR A MINIMUM LEVEL. ABOVE THAT MINIMUM, WE HAVE NEGOTIATED THE HIGHEST LEVEL THAT WE CAN GET IMPORTING COUNTRIES TO ACCEPT, AND WE ARE STUCK WITH THOSE LIMITS.
+BUT, AT PRESENT, DEMAND IS MUCH HIGHER- SO WHATEVER CHANGES WÉ MIGHT MAKE TO THAT SYSTEM WOULD NOT ALTER THE BASIC FACT THAT AT PRESENT DEMAND IS MUCH GREATER THAN THE QUANTITY WE ARE ALLOWED TO SUPPLY IN TOTAL UNDER THESE ARRANGEMENTS.+
+
ON THE QUESTION OF THE SELLING OF QUOTAS HE SAID: +IT IS ALLEGED THAT SOME QUOTA HOLDERS DO SELL THEM. BUT WE VERY RARELY GET ANY SPECIFIC INFORMATION ABOUT THIS. WE ARE AT PRESENT
INVESTIGATING ONLY ONE ALLEGATION ABOUT THIS.+
/IN THE PAST
No comments yet.
Private notes are available after approval.