XN000022-1979-12-19 — Page 2

WEDNESDAY, DECEMBER 19, 1979

DORWARD REVIEWS HK'S TRADE PROBLEMS IN 1979

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THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, MR. WILLIAM DORWARD TODAY (WEDNESDAY) REVIEWED THE TRADE PROBLEMS THAT HAVE FACED HONG KONG IN 1979 AND THE POSITIVE STEPS TAKEN TO OVERCOME THEM.

SPEAKING AT A LUNCHEON MEETING OF THE HONG KONG EXPORTERS' ASSOCIATION, MR. DORWARD SAID MOST OF HONG KONG'S TRADE PROBLEMS HAVE BEEN DUE TO OUR SUCCESS, NOT OUR FAILURE. IN 1979, DESPITE AS FORMIDABLE ARRAY AS EVER, EXPORTS LOOK LIKE MARKING UP GROWTH IN MONEY TERMS OF AROUND 35 PER CENT.

+STRONG MARKET DEMAND IN THE EEC, NOTABLY THE UK AND THE FEDERAL REPUBLIC OF GERMANY WHO BETWEEN THEM TAKE ABOUT 85 PER CENT OF OUR EXPORTS TO THE COMMUNITY, SHOULD RESULT IN A SUBSTANTIALLY BETTER OUTTURN IN VOLUME AND VALUE TERMS IN 1979 AS COMPARED WITH 1978. WE EXPECT QUOTA UTILISATION TO BE ABOUT FIVE PERCENTAGE POINTS HIGHER THAN LAST YEAR.+

REFERRING TO TEXTILE TRADE WITH THE UNITED STATES, MR. DORWARD SAID THAT HONG KONG RESPONDED TO A PLEA TO HELP THE USA OVERCOME WHAT WERE ESSENTIALLY DOMESTIC POLITICAL PROBLEMS BY AGREEING, FOR 1979, TO VOLUNTARILY WAIVING OUR RIGHTS TO CERTAIN FLEXIBILITY PROVISIONS IN THE BILATERAL AGREEMENT.

+UNFORTUNATELY THE INK WAS BARELY DRY ON THAT EXCHANGE OF LETTERS BEFORE ANOTHER U.S. REQUEST FOR ASSISTANCE WAS RECEIVED, THIS TIME FOR 1980, HE SAID.

+CONSULTATIONS ON THIS HAVE BEEN PROTRACTED AND DIFFICULT. IN MANILA, GENEVA, HONG KONG AND NOW LONDON, NEGOTIATORS FROM BOTH SIDES HAVE SOUGHT A FORMULA WHICH WOULD MEET U.S. CONCERNS WITHOUT DOING DAMAGE TO THE LEGITIMATE RIGHTS AND TRADE EXPECTATIONS OF HONG KONG, BOTH NOW AND FOR THE FUTURE,+ SAID MR. DORWARD.

IN NOVEMBER HE WENT TO WASHINGTON TO SEE GOVERNOR REUBIN ASKEW, THE PRESIDENT'S SPECIAL TRADE REPRESENTATIVE, IN AN ATTEMPT TO FIND A BASIS WHEREBY CONCESSIONS HONG KONG WAS PREPARED TO MAKE, WITHOUT COMPENSATION, MIGHT BE CONSIDERED ADEQUATE BY THE UNITED STATES,

+DESPITE ALL THESE EFFORTS I AM SORRY TO SAY NO AGREEMENT HAS YET BEEN REACHED, FOR OUR PART WE ARE PREPARED TO CONTINUE TO TRY, CALMLY, PATIENTLY AND CONSTRUCTIVELY, TO FIND AN ACCOMMODATION WHILE AT THE SAME TIME PROTECTING OUR BASIC AND VITAL INTERESTS,+ SAID MR. DORWARD.

+OVERALL USA IMPORTS OF TEXTILES FROM ALL SOURCES SHOWED A DECLINE IN THE FIRST EIGHT MONTHS OF 1979 OF 21 PER CENT, A FACT WHICH ONE MIGHT HOPE WOULD TO SOME EXTENT EASE THEIR CONCERN OVER THE SUBJECT OF OUR UNCOMPLETED CONSULTATIONS, HE SAID.

/IN VOLUME