XN000022-1980-12-03 — Page 8

WEDNESDAY, DECEMBER 3, 1980

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SIR PHILIP SAID A TOP ICAL EXAMPLE OF THE VALIDITY OF THIS MAXIM WAS OUR RECENT EXPERIENCE WITH THE PROVISION IN THE TAKEOVERS CODE FOR A MANDATORY BID FOR MINORITY SHARE-HOLDINGS WHEN CONTROL OF A COMPANY PASSED.

HE ALSO NOTED THAT WHILE LEGAL CONTROL PASSES AT 50 PER CENT, IT IS FAIRLY OBVIOUS TO MOST PEOPLE THAT DE FACTO CONTROL PASSES AT A SOMEWHAT LOWER LEVEL, THE EXACT POINT BEING IMPOSSIBLE TO DEF INE, VARYING AS IT DOES WITH INDIVIDUAL CIRCUMSTANCES.

SIR PHILIP SAID THE HONG KONG TAKEOVERS COMMITTEE NOW FOUND ITSELF IN THE SAME POSITION AS THE LONDON TAKEOVERS PANEL IN ITS EARLY YEARS, THAT IS TO SAY, HAVING TO REVIEW EACH POTENTIAL CHANGE IN CONTROL ACCORDING TO CIRCUMSTANCES.

THE LONDON PANEL EVENTUALLY FOUND THIS AN IMPOSSIBLE TASK AND ABANDONED THE JUDGEMENTAL APPROACH IN FAVOUR OF A TRIGGER-POINT+ APPROACH. THE ACTUAL TRIGGER-POINT CHOSEN WAS INITIALLY 40 PER CENT OF VOTING RIGHTS, BUT IT WAS SUBSEQUENTLY REVISED DOWNWARDS TO 30 PER CENT.

TRADE PROTECT ION ISM STILL A THREAT TO HK

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HONG KONG WILL CONTINUE TO FACE THE THREAT OF PROTECTIONISM IN MANY OF ITS MAJOR MARKETS, THE HON DAVID NEWBIGGING TOLD THE LEGISLATIVE COUNCIL TODAY.

HE SAID HOWEVER THAT THE TRADE DEVELOPMENT COUNCIL WOULD CONTINUE ITS EFFORTS TO EXPAND AND DIVERSIFY BOTH THE RANGE OF HONG KONG'S PRODUCTS AND THE MARKETS TO WHICH THEY ARE SOLD.

MR NEWBIGGING WAS SPEAKING AT THE TABLING OF THE HONG KONG TRADE DEVELOPMENT COUNCIL ANNUAL REPORT FOR THE YEAR ENDED MARCH 31, 1980.

HE SAID THAT HONG KONG'S EXTERNAL TRADE IN 1979 REACHED AN ALL-TIME RECORD OF $161 771 MILLION, REPRESENTING AN AVERAGE ANNUAL GROWTH OF 19 PER CENT IN TERMS OF VALUE IN THE LAST DECADE.

THE RAPID GROWTH IN HONG KONG'S TOTAL EXPORTS IN 1979 WHICH REACHED $75 934 MILLION A 37 PER CENT INCREASE OVER 1978 ALSO REFLECTED A STRENGTHENING IN IMPORT DEMAND IN MANY OF HONG KONG'S MAJOR MARKETS.

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+ALTHOUGH THE UPSURGE IN HONG KONG EXPORTS CANNOT BE ATTRIBUTED TO ANY SINGLE FACTOR, IT IS PERHAPS APPROPRIATE TO MENTION THE VALUE OF SERVICES PROVIDED BY THE TDC IN ASSURING A YEAR-ROUND MARKET PLACE FOR HONG KONG-MADE PRODUCTS BY ITS PARTICIPATION IN NUMEROUS OVERSEAS TRADE FAIRS, IN ADDITION TO THE RESEARCH PROJECTS UNDERTAKEN BY TDC STAFF FOR MARKET DEVELOPMENT AND DIVERSIFICATION, HE SAID.

MR NEWBIGGING POINTED OUT THAT THE TDC IS CONTINUOUSLY ADDING TO ITS TRADE FAIR PROMOTIONS AND DURING THE PAST YEAR

INTRODUCED SIX NEW INTERNATIONAL FAIRS TO ITS PROGRAMME,

/+IT ALSO