XN000022-1979-11-11 — Page 2

SUNDAY, NOVEMBER 11, 1979

QUOTA DODGERS ARE PENALISED

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AT LEAST 33 HONG KONG TEXTILE TRADERS WHO TRIED TO CIRCUMVENT THE QUOTA SYSTEM WILL PERMANENTLY LOSE THEIR QUOTAS EQUIVALENT TO THE QUANTITY OF GOODS THEY SHIPPED ILLEGALLY.

AND IF THEY DO NOT HAVE SUFFICIENT QUOTA IN THE CATEGORIES THEY SHIPPED, THEY WILL HAVE TO OBTAIN THROUGH PERMANENT TRANSFERS THE APPROPRIATE QUANTITY AND THEN SURRENDER THEM TO THE DEPARTMENT OF TRADE, INDUSTRY AND CUSTOMS.

IF THE COMPANIES FAIL TO DO SO, THEY WILL BE BARRED FROM APPLYING FOR LICENCES, AND MAKING TRANSFERS OF QUOTAS IN RESPECT OF THE ENTIRE EEC MARKET FOR THE YEARS 1980 TO 1982.

+WE HAVE TAKEN THIS TOUGH ADMINISTRATIVE ACTION TO DEMONSTRATE CLEARLY THAT WE ARE DETERMINED TO STAMP OUT THESE MALPRACTICES, WHICH JEOPARDISE HONG KONG'S INTEGRITY IN THE EYES OF OUR TRADING PARTNERS,+ SAID THE DIRECTOR OF TRADE, MR. PETER TSAO.

+OUR ACTION IS ALSO INTENDED TO SAFEGUARD THE INTERESTS OF MOST PEOPLE IN THE INDUSTRY - THE LAW-ABIDING EXPORTERS AND MANUFACTURERS WHOSE FUTURE COULD BE AFFECTED IF, BECAUSE OF THE OFFENCES COMMITTED BY A FEW, OUR NEGOTIATIONS WITH IMPORTING COUNTRIES WERE IMPERILLED, HE SAID.

AS A RESULT OF A MASSIVE INVESTIGATION MOUNTED BY THE DEPARTMENT AFTER THE UNITED KINGDOM CUSTOMS SUPPLIED INFORMATION TO HONG KONG, SEVEN COMPANIES WERE PROSECUTED AND FINED A TOTAL OF $343 000. ANOTHER 26 COMPANIES WERE GIVEN 14 DAYS TO APPEAL AGAINST THE DEPARTMENT'S PROPOSALS TO PERMANENTLY REMOVE

THE IR QUOTAS. NONE OF THE FEW REPRESENTATIONS MADE TO THE DEPARTMENT WERE FOUND TO BE JUSTIFIED.

LAST WEEK LETTERS WENT TO ANOTHER SIX COMPANIES SAYING THAT THEY ALSO HAD 14 DAYS TO APPEAL AGAINST SIMILAR ADMINISTRATIVE ACTION, AND A SEVENTH COMPANY IS TO BE PROSECUTED IN THE NEXT FEW WEEKS.

MOST OF THE OFFENDERS WERE INVOLVED IN SHIPPING GARMENTS TO BRITAIN EITHER THROUGH ANOTHER ASIAN COUNTRY NOT SUBJECT TO QUOTA RESTRAINT, OR DIRECT TO THE U.K, WITH FALSE DOCUMENTS.

+WE SHALL NOT HESITATE TO THOROUGHLY INVESTIGATE INFORMATION GIVEN TO US BY ANY COUNTRY AND, IF THE EVIDENT JUSTIFIES IT, TAKE EQUALLY DRASTIC ACTION AGAINST ANY COMPANY OR INDIVIDUAL INVOLVED IN SUCH ACTIVITIES, SAID MR. TSAO.

SIR JACK CATER ACTING GOVERNOR

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SIR JACK CATER HAS ASSUMED THE FUNCTIONS OF THE OFFICE OF GOVERNOR FOLLOWING THE DEPARTURE FROM HONG KONG OF THE GOVERNOR, SIR MURRAY MACLEHOSE YESTERDAY (SATURDAY).

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