XN000022-1982-02-23 — Page 6

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TUESDAY, FEBRUARY 23, 1982

JAPAN MAINTAINS DISCRIMINATIONS AGAINST HONG KONG

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THE DISCRIMINATIONS MAINTAINED BY JAPAN AGAINST HONG KONG UNDER THE JAPANESE GENERALISED SCHEME OF PREFERENCES ARE TO CONTINUE FOR AT LEAST ANOTHER YEAR.

ALTHOUGH HONG KONG IS INCLUDED AS A BENEFICIARY UNDER THE JAPANESE GENERALISED SCHEME OF PREFERENCES, HONG KONG ALONE IS EXCLUDED FROM PREFERENCE IN RESPECT OF FIVE PRODUCT CATEGORIES TRAVEL GOODS, ARTIFICIAL FLOWERS, GLASS BEADS, IMITATION JEWELLERIES AND TOYS.

EXPRESSING HIS DEEP DISAPPOINTMENT AT THE NEWS, THE COMMISSIONER OF TRADE, MR LAWRENCE MILLS SAID, +IN OUR VIEW THE EXCLUSIONS, AGAINST WHICH WE HAVE MADE REPRESENTATIONS OVER THE LAST TEN YEARS, ARE DISCRIMINATORY IN NATURE. ALTHOUGH THE JAPANESE HAVE ARGUED THAT REMOVAL OF EXCLUSIONS WOULD LIKELY GIVE RISE TO SPECIAL SOCIAL PROBLEMS FOR THE JAPANESE INDUSTRIES CONCERNED, WE FIND IT DIFFICULT TO ACCEPT THE ARGUMENT, AS IT SUGGESTS THAT HONG KONG IS RESPONSIBLE FOR OR THE CAUSE OF, THE SPECIAL SOCIAL PROBLEMS.

+STATISTICS HAVE SHOWN THAT HONG KONG'S SHARE OF THE JAPANESE IMPORT MARKET IN RESPECT OF THE FIVE PRODUCT CATEGORIES DROPPED FROM 28.7 PER CENT IN 1972 TO 13,2 PER CENT IN JANUARY TO NOVEMBER, 1981.

+AT A TIME WHEN JAPAN IS OSTENSIBLY TRYING TO LIBERALISE TRADE, IT IS AN ANOMALY TO MAINTAIN THIS DISCRIMINATIONS AGAINST HONG KONG. INDEED, THE EXCLUSIONS HAVE ENABLED OUR COMPETITORS TO INCREASE THEIR SHARE OF IMPORTS INTO JAPAN, HE SAID.

+MOREOVER, THE MAINTENANCE BY JAPAN OF THESE EXCLUSIONS WOULD RESULT IN A FURTHER TILTING OF THE TRADE BALANCE IN JAPAN'S FAVOUR WHICH, IN 1981, EXCEEDED HK$26 000 MILLION WHILE HONG KONG DOES NOT SEEK TO REDUCE IMPORTS FROM JAPAN, HONG KONG'S ECONOMY DEPENDS ON ITS ABILITY TO EXPORT, AND THAT ABILITY DIRECTLY AFFECTS ITS ABILITY TO IMPORT,+ ADDED MR MILLS.

THE EXCLUSIONS WERE DISCUSSED AT THE JOINT MEETING OF THE HONG KONG/JAPAN AND JAPAN/HONG KONG BUSINESS COOPERATION COMMITTEES LAST FRIDAY, FEBRUARY 19. THE HONG KONG COMMITTEE ASKED THE JAPAN COMMITTEE TO URGE THEIR GOVERNMENT TO REMOVE THE REMAINING DISCRIMINATIONS.

IN 1981, HONG KONG'S DOMESTIC EXPORTS OF THE FIVE PRODUCT CATEGORIES TO JAPAN WERE VALUED AT HK$243 MILLION OR 8.3 PER CENT OF HONG KONG'S TOTAL DOMESTIC EXPORTS TO JAPAN.

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