XN000022-1979-02-28 — Page 31

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WEDNESDAY, FEBRUARY 28, 1979

FEW SIGNS OF PROTECTIONIST PRESSURES EASING

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THERE ARE VERY FEW SIGNS THAT. PROTECTIONIST PRESSURES ARE EASING ALTHOUGH THERE WAS NO SUBSTANTIAL TIGHTENING OF RESTRICTIONS DURING 1978, THE FINANCIAL SECRETARY SAID TODAY (WEDNESDAY).

REVIEWING THE ECONOMIC OUTLOOK IN THE FORECAST PERIOD 1980 TO 1982, HE SAID THERE ARE SOME SIGNS THAT THE LIKELY CONSEQUENCE OF THE TARIFF REDUCTIONS WHICH EMERGE FROM THE PRESENT MULTILATERAL TRADE NEGOTIATIONS WILL BE YET FURTHER MOVES TOWARDS QUANTITATIVE

RESTRICTIONS.+

IN 1978, QUOTAS FOR CERTAIN KEY CLOTHING PRODUCTS TO MAJOR MARKETS WERE EXHAUSTED BEFORE THE END OF THE QUOTA YEAR.

+AS THE GROWTH RATES FOR QUOTAS PERMITTED IN THE PRESENT AGREEMENTS ARE LOW, QUOTAS ARE LIKELY TO CONSTRAIN THE GROWTH RATE OF EXPORTS OF TEXTILES AND CLOTHING IN THE YEARS TO COME, EVEN IF WORLD TRADE CONTINUES TO EXPAND AND THE TERMS OF EXISTING AGREEMENTS REMAIN UNALTERED,+ MR. HADDON-CAVE SAID.

HE ADDED THAT TEXTILES AND CLOTHING STILL CONSTITUTED AROUND 45-50 PER CENT OF THE TOTAL VALUE OF HONG KONG'S DOMESTIC EXPORTS.

ADVISORY COMMITTEE ON DIVERSIFICATION

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THE FINANCIAL SECRETARY SAID TODAY (WEDNESDAY) HE HOPED THE ADVISORY COMMITTEE ON DIVERSIFICATION WOULD ASSEMBLE ITS IDEAS DURING THE NEXT FEW MONTHS AND REPORT TO THE GOVERNOR IN DEFINITE TERMS BY THIS AUTUMN.

HE SAID TWO OF THE SIX SUB-COMMITTEES HAD NOW COMPLETED THE IR REPORTS AND THE OTHER FOUR WOULD COMPLETE THE IRS SHORTLY.

HE DESCRIBED THE SETTING UP OF THE COMMITTEE AS +ONE *RESPONSE BY THE GOVERNMENT TO THE SHIFT TO PROTECTIONISM, BUT

WITHIN THE CONTEXT OF OUR GENERAL COMMITMENT TO THE MARKET-BASED FREE ENTERPRISE SYSTEM. +

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