XN000022-1982-11-12 — Page 2

FRIDAY, NOVEMBER 12, 1982

GOVERNOR CALLS FOR OPEN MARKETS

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THE GOVERNOR, SIR EDWARD YOUDE, CALLED TODAY ON ALL COUNTRIES TAKING ADVANTAGE OF HONG KONG'S OPEN MARKET TO OFFER SIMILAR TREATMENT TO HONG KONG PRODUCTS.

+WE BELIEVE STRONGLY THAT IT IS IN THE INTEREST NOT ONLY OF HONG KONG BUT OF THE WORLD TRADING SYSTEM THAT OPEN MARKET POLICIES SHOULD PREVAIL AND WE URGE ALL THOSE COUNTRIES WHO, WITH OUR ENCOURAGEMENT, ARE QUICK TO TAKE FULL ADVANTAGE OF OUR OPEN MARKET FOR THEIR EXPORTS TO BE READY TO ACCORD SIMILAR OPEN TREATMENT TO OURS, SIR EDWARD SAID.

THE GOVERNOR WAS SPEAKING THIS MORNING WHEN OPENING THE REMEX CENTRE AT WONG CHUK HANG, HEADQUARTERS OF A LEADING WATCH MAKER, THE REMEX GROUP OF COMPANIES.

REFERRING TO THE UNILATERAL IMPOSITION OF RESTRICTIONS ON WATCH IMPORTS BY FRANCE, THE GOVERNOR ASSURED THE TRADE THAT THIS WAS OF MUCH CONCERN TO THE HONG KONG GOVERNMENT, AS IT WAS TO HONG KONG INDUSTRY.

SIR EDWARD SAID: +HONG KONG'S REQUEST TO THE GATT COUNCIL FOR A PANEL EXAMINATION OF OUR COMPLAINTS HAS BEEN ACCEPTED AND WE EXPECT THE PROCESS TO BEGIN NEXT MONTH.

+WE SHALL HAVE TO WAIT THE PANEL'S FINDINGS BEFORE WE CAN DECIDE ON WHAT FUTURE COURSE OF ACTION HONG KONG SHOULD TAKE.+

HE SAID ALTHOUGH THE WATCH AND CLOCK INDUSTRY WAS NOT IMMUNE TO THE CURRENTLY WEAK DEMAND IN MAJOR OVERSEAS MARKETS, THERE WERE SOME HOPEFUL SIGNS OF QUICKENING OF CONSUMER DEMAND.

+ AM SURE THAT THE KIND OF CONFIDENCE AND COMMITMENT THAT HAS BEEN DEMONSTRATED HERE BY THE REMEX GROUP OF COMPANIES WILL BE REWARDED WHEN THE RECOVERY CYCLE GATHERS SPEED.+

SPEAKING OF THE WATCH AND CLOCK INDUSTRY, SIR EDWARD SAID: +IN THE PAST FEW YEARS, THIS INDUSTRY HAS NOT ONLY ACHIEVED AN IMPRESSIVE GROWTH IN OUTPUT, BUT HAS ALSO EXPANDED ITS RANGE TO CATER TO RAPIDLY CHANGING MARKET DEMAND. FROM ITS BEGINNINGS AS AN ASSEMBLY INDUSTRY, TODAY IT PRODUCES THE SPECTRUM OF CONVENTIONAL, DIGITAL QUARTZ AND ANALOGUE QUARTZ WATCHES.

+ THE RECENT ESTABLISHMENT OF WAFER DIFFUSION PLANTS ON THE TAI PO INDUSTRIAL ESTATE CAPABLE OF PRODUCING ELECTRONIC WATCH MODULES HAS ADDED A NEW DIMENSION TO AN INDUSTRY, ALREADY WELL SUPPORTED BY WATCH BAND AND CASE MANUFACTURERS.+

HE SAID LAST YEAR, WATCHES AND CLOCKS MADE UP HONG KONG'S THIRD LARGEST EXPORT ITEM, WORTH $7 400 MILLION.

IN VALUE TERMS, HONG KONG NOW IS SECOND ONLY TO SWITZERLAND IN EXPORTS OF WATCHES AND CLOCKS. AND IN QUANTITY TERMS HONG KONG IS THE WORLD'S LARGEST EXPORTER: THE INDUSTRY, WITH ITS 45 000 STRONG WORKFORCE, LAST YEAR EXPORTED AN ASTONISHING 146.4 MILLION WATCHES.