XN000022-1979-11-27 — Page 3

TUESDAY, NOVEMBER 27, 1979

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DORWARD SPEAKS ON HK/USA TEXTILE TALKS

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THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, MR. WILLIAM DORWARD TODAY (TUESDAY) HOPED THE RESUMED CONSULTATIONS NEXT MONTH ON THE HK/USA TEXTILE AGREEMENT WOULD BE SUCCESSFUL.

HE SAID HIS WISH WAS NOT ONLY BECAUSE UNSOLVED PROBLEMS CREATED UNCERTAINTY, WHICH IS THE WORST THING FOR THE CONDUCT OF BUSINESS, BUT ALSO BECAUSE WE NEED TO LOWER THE TEMPERATURE IN TEXTILE TRADE RELATIONS BEFORE THE PARTICIPANTS IN THE MULTI-FIBRE ARRANGEMENT GET DOWN TO CONSIDERING ITS FUTURE.+

SPEAKING AT A LUNCH MEETING OF THE HONG KONG COTTON SPINNERS' ASSOCIATION, MR. DORWARD SAID THERE WAS WIDESPREAD DISILLUSIONMENT AMONG THE EXPORTING COUNTRIES OVER THE WAY THE CURRENT MFA HAD BEEN USED, AND SOMETIMES ABUSED.

+THERE IS CONCERN ABOUT THE GROWTH IN PROTECTIONIST FORCES IN THE DEVELOPED COUNTRIES AND THE PRESSURES THEY ARE PUTTING ON THEIR GOVERNMENTS. THE COMBINATION OF THESE TWO ELEMENTS IS NOT GOING TO MAKE IT EASY TO COME TO AN ACCEPTABLE COMPROMISE ON FUTURE ARRANGEMENTS, HE SAID.

*THE PRESENT MFA DOES NOT EXPIRE UNTIL THE END OF 1981, BUT ALREADY THE LINES ARE BEING DRAWN AND ANYTHING THAT HAPPENS IN A BILATERAL RELATIONSHIP WHICH MIGHT TEND TO MAKE THE POSITION OF EITHER SIDE MORE RIGID CAN ONLY ADD TO THE DIFFICULTIES.

OVER THE NEXT YEAR OR TWO THE DEPARTMENT WAS GOING TO BE MUCH CONCERNED WITH THE FUTURE BILATERAL AND MULTI-LATERAL ARRANGEMENTS WHICH WILL AFFECT HONG KONG'S TEXTILE TRADE- AND WITH INDUSTRIAL DEVELOPMENT AND PROMOTION.

+DESPITE THE FORMIDABLE GROWTH IN THE NON-TEXTILE SECTOR OVER THE LAST TWO DECADES, YOU HAVE VIRTUALLY MAINTAINED YOUR POSITION IN THE FACE OF SEVERE COMPETITION, RISING RAW MATERIAL COSTS AND TRADE RESTRICTIONS, SAID MR. DORWARD.

+TO THOSE WHO HAVE BEEN PROPHESYING THE DECLINE OF THE TEXTILE INDUSTRY FOR ALL THESE YEARS, I WOULD SIMPLY STATE MY CONVICTION THAT IT IS ALIVE AND WELL, AND IS GOING TO BE THE MAINSTAY OF OUR ECONOMY FOR MANY YEARS TO COME.+

REFERRING TO THE REPORT OF THE ADVISORY COMMITTEE ON DIVERSIFICATION, WHICH WILL BE PUBLISHED IN THE NEXT FEW WEEKS, MR. DORWARD SAID THAT AS FAR AS HIS DEPARTMENT WAS CONCERNED, THE REPORT WILL MARK THE BEGINNING OF A NEW ERA IN INDUSTRIAL DEVELOPMENT AND PROMOTION.

+1 HAVE SEEN THIS SIDE OF OUR ACTIVITIES GROW FROM AN INSIGNIFICANT UNIT, DOING LITTLE MORE THAN OPERATE ON THE FRINGE OF DEVELOPMENT OF INDUSTRY, TO A FULLY FLEDGED DEPARTMENT. OUR ACTIVITIES IN THE FIELD OF INDUSTRIAL PROMOTION HAVE BEEN IMPROVED, BOTH IN SCOPE AND IN PROFESSIONALISM.

/+IN INDUSTRIAL

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