MONDAY, APRIL 3, 1978
HONG KONG ANXIOUS ABOUT GROWING TENDENCY TOWARDS
PROTECTIONISM, SAYS SIR DENYS
****
NONG KONG MUST VIEW WITH ANXIETY A GROWING TENDENCY AMONG THE MORE ADVANCED NATIONS, WHO CONSTITUTE OUR PRINCIPAL MARKETS, TOWARDS PROTECTIONISM, THE CHIEF SECRETARY, SIR DENYS ROBERTS, SAID TODAY (MONDAY).
SIR DENYS WAS OPENING THE FINANCIAL TIMES ASIAN BUSINEBS BRIEFING CONFERENCE AT THE CONVENTION CENTRE.
HE SAID OUR DOORS REMAINED OPEN TO ALL WHO WISHED TO DO BUSINESS WITH US AND WE WERE FIRM BELIEVERS I UNRESTRICTED MULTILATERAL. TRADE, UPON WHICH OUR PROSPERITY MUST DEPEND.
+FROM TIME TO TIME, NO DOUBT, A COUNTRY MAY BE 'FORCED BY INTERNAL PRESSURES, TO ADOPT A DEGREE OF RESTRICTION ON FOREIGN TRADE TO GIVE TEMPORARY PROTECTION TO AN AILING INDUSTRY,+ SHR DENYS SAID.
+THIS IS PERHAPS DEFENSIBLE, IF IT IS A SHORT TERN MEASURE INTENDED TO PROVIDE ONLY A BREATHING SPACE FOR THE READJUSTMENT OF THE ECONOMY, BUT IF ADOPTED AS A POLICY OF WIDE APPLICATION, IT CAN ONLY BRING UNFORTUNATE CONSEQUENCES, BOTH WITHIN THE COUNTRY WHICH ADOPTS PROTECTIVE MEASURES ON A LARGE SCALÉ · AND- ON INTERNATIONAL TRADE AND STABILITY.
BECAUSE PROTECTIONISM BORE HARDEST UPON THE POOR NATIONS, WHOSE WAGE STRUCTURE MADE THEM A THREAT TO THE HIGHER COST
INDUSTRIES OF RICHER LANDS, IT WIDENED THE GAP BETWEEN BICH AND POOR AND WAS A POTENT FACTOR IN THE ECONOMIC UNREST. WHICH HAD SO OFTEN BECOME TRANSFORMED INTO POLITICAL ENMITY, AND SOMETIMES INTO MILITARY ENTERPRISE, SAID SIR DENYS.
+AND IRONICALLY, PROTECTIONISM, BY INHIBITING THE RECOVERY OF WORLD TRADE IN LEAN TIMES, POSTPONES THAT VERY REVIVAL OF INTERNATIONAL BUSINESS UPON WHICH THE PROSPERITY OF A HIGHLY INDUSTRIALISED RESTRICTING COUNTRY DEPENDS, SIR DENYS.SAID.
+WHILE I AM CONFIDENT THAT, IN GENERAL AND IN THE LONGER TERM, WISER COUNSELS WILL PREVAIL AND THE SURGE OF PROTECTIONISM WILL ́TURN BACK, RESTRICTIVE AGREEMENTS OF THE KIND IMPOSED (UPON US BY THE EEC LAST YEAR HAMPER THE GROWTH OF OUR ECONOMY AND ADD TO THE DIFFICULTIES OF OUR TRADERS, WHO ALREADY FACE STERN COMPETITION BUT ARE CONFIDENT THAT THEY CAN MEET IT WITH SUCCESS, PROVIDED THAT THEY ARE ALLOWED TO OPERATE ON EQUAL TERMS WITH OUR COMPETITORS AND THAT ARTIFICAL RESTRAINTS DO NOT IMPEDE THEIR ABILITY TO SWITCH PRODUCTS TO MEET CHANGING DEMANDS IN OVERSEAS MARKETS.+
/SIR DESYS ...........
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