XN000022-1981-12-23 — Page 14

WEDNESDAY, DE

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TRADE CHIEF TELLS OF ME A TALKS

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THE COMMISSIONER OF TRADE, MR LAWRENCE MILLS, AND OTHER MEMBERS OF TEXTILE TASK FORCE RETURNED TO HONG KONG TODAY (WEDNESDAY 23).

AT A PRESS CONFERENCE AT KAI TAK HE SPOKE OF THE NEGOTIATIONS CONDUCTED IN GENEVA ON THE FUTURE OF THE MFA:

+EARLY YESTERDAY AFTERNOON, THE TEXTILES COMMITTEE OF THE GATI ADOPTED A PROTOCOL EXTENDING THE MULTI-FIBRE ARRANGEMENT FOR A PERIOD OF 4 YEARS AND 7 MONTHS (THAT IS, FROM JANUARY 1, 1982 TC JULY 31, 1956).

+WE LEFT HONG KONG ON NOVEMBER 13, AND FOR THE PAST FIVE WEEKS WE HAVE BEEN ENGAGED IN INTENSIVE NEGOTIATIONS ON THE FUTURE OF THE MFA.

+WE SET OUT IN THE HOPE THAT WE COULD SECURE SOME IMPROVEMENTS IN THE MFA ALONG THE LINES DRAWN UP BY THE EXPORTING DEVELOPING COUNTRIES IN NEW DELHI IN EARLY NOVEMBER. WE FOUND THAT AS THE NEGOTIATIONS PROGRESSED WE WERE INCREASINGLY HAVING TO FIGHT A REARGUARD ACTION TO CONTAIN THE SITUATION AND TO PRESERVE FEW BENEFITS REMAIN IN THE MFA FOR DEVELOPING COUNTRIES IN 1:3 FACE OF STRONG DEMANDS, SOME OF THEM EXTREME, FROM THE IMPORTING COUNTRIES.

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+ IN THIS RESPECT THE UNITED STATES WAS SEEKING AUTHORITY TO GIVE LOWER GROWTH TO SUPPLIERS SUCH AS HONG KONG AND KOREA AND TO REDUCE THE OPPORTUNITIES FOR SWING AND ELIMINATE CARRYOVER AND CARRYFORWARD.

+THE EEC'S DEMANDS WERE WORSE STILL.

+THE COMMUNITY WANTED AUTHORITY TO CUTBACK HONG KONG AND KOREA'S QUOTAS IN THOSE CATEGORIES WHERE WE ARE MOST COMPETITIVE. THEY ALSO WANTED AUTHORITY TO GIVE LOWER GROWTH, TO ELIMINATE SWING, CARRYOVER AND CARRYFORWARD, TO OBLIGE US TO USE A GIVEN AMOUNT OF EEC FABRICS IN OUR GARMENT EXPORTS IF WE WISHED TO FULLY UTILISE OUR QUOTAS AND TO INTRODUCE AN ANTI-SURGE MECHANISM WHICH WOULD PREVENT FULL UTILISATION OF QUOTAS WHERE THERE HAD BEEN SHORTFALLS IN A PREVIOUS YEAR.

+ IN THE FINAL RESULT, INEVITABLY, SOME CONCESSIONS HAD TO BE MADE TO SECURE A NE MFA. BUT THE CONCESSIONS WHICH HAVE BEEN MADE CONTAIN SAFEGUARDS WHICH SHOULD OFFER SOME PROTECTION IN EILATERAL NEGOTIATIONS FOR THE EXPORTING COUNTRIES.

→FOR EXAMPLE, WE HAVE MANAGED TO BUILD . TWO VERY IMPORTANT CONCEPT - FIRST, THAT ANY CONCESSIONS HAVE TO SE ACCEPTABLE TO BCT PARTIES, AND, SECONDLY, THAT THE IMPO-ING COUNTRY DOES NOT HAVE THE FIGHT TO UNILATERAL ACTION IN THE LAST PESORT. THESE POINTS ARE PARTICULARLY MPORTANT IN THE APPLICATION OF THE ANTI-SURSE MECHANT AND IN DISCUSSIONS ON THE FLEXIBILITY: PROVISIONS TO TE IN TOPP TEATER IN BILATERAL NETIATIONS.