XN000022-1983-05-16 — Page 6

MONDAY, MAY 16, 1983

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TWO HONG KONG DANCERS, MISS LINDA FUNG AND MISS CHAN SIU-MUT, WHO ARE CURRENTLY RECEIVING TRAINING AT THE ROYAL BALLET SCHOOL IN LONDON ON HONG KONG JOCKEY CLUB MUSIC FUND SCHOLARSHIPS, TOOK PART IN A CULTURAL PERFORMANCE IN THE FUND-RAISING EVENT.

THE HONG KONG TOURIST ASSOCIATION CONTRIBUTED TO THE EVENT BY ARRANGING A MAGNIFICENT CHINESE WEDDING GOWN FOR THE COSTUME PARADE.

MEMBERS OF THE TEXTILES ADVISORY BOARD, WHO WERE IN BRUSSELS AT THE TIME, ALSO CONTRIBUTED BY PROVIDING ARTICLES FOR SALE IN THE BAZAAR.

ALLEGATIONS ABOUT TEXTILE CIRCUMVENTION REFUTED *****

THE DIRECTOR OF TRADE, MR HAMISH MACLEOD TODAY (MONDAY) REFUTED ALLEGATIONS IN AMERICAN NEWSPAPERS THAT INCREASING AMOUNTS OF APPAREL EXPORTS FROM CHINA WERE BEING SHIPPED TO THE UNITED STATES FROM HONG KONG UNDER HONG KONG QUOTAS. AS A RESULT OF THE AMERICAN RESTRICTIONS ON CHINA IMPORTS PENDING A NEW TEXTILE AGREEMENT.

+THERE IS NO EVIDENCE THAT THIS HAS IN FACT HAPPENED. IT IS MERELY SPECULATION, SAID MR MACLEOD, ADDRESSING THE LUNCHEON MEETING OF THE AMERICAN CHAMBER OF COMMERCE TEXTILE COMMITTEE.

+WE HAVE A CONTROL SYSTEM WHICH IS GENERALLY AGREED TO BE EFFICIENT BY OTHER COUNTRIES WITH WHICH WE DEAL. NO SYSTEM IS PERFECT, BUT HONG KONG IS NOT GENERALLY REGARDED AS ONE OF THOSE COUNTRIES POSING A SERIOUS CIRCUMVENTION PROBLEM.+

MR MACLEOD EXPLAINED THAT HONG KONG DID NOT MAKE ONLY PAPER CHECKS - PHYSICAL CHECKS WERE MADE AT FACTORIES, AND OF SHIPMENTS. +WE LICENSE ALL TEXTILE IMPORTS AS A MEANS OF SPOTTING POSSIBLE CIRCUMVENTION. AND WHEN THE US RESTRICTIONS ON CHINA WERE INTRODUCED WE WERE NOT UNAWARE OF THE TEMPTATION THAT MIGHT THEN ARISE: WE THEREFORE STEPPED UP OUR CHECKS WITH THAT IN MIND, BUT NO NEW PROBLEMS HAVE YET BEEN UNCOVERED,+ SAID MR MACLEOD.

+OUR CHECKS ARE NOT MERELY FOR SHOW.

+DURING 1982 THERE WERE 46 PROSECUTIONS INVOLVING EXPORT LICENCES IN RESPECT OF THE USA, IN ADDITION TO CASES WHERE ADMINISTRATIVE ACTION WAS TAKEN, HE ADDED.

TURNING TO THE US GENERALISED SYSTEM OF TARIFF PREFERENCES (GSP) CURRENTLY UNDER REVIEW IN THE USA, MR MACLEOD POINTED OUT THAT, THEORETICALLY, 45 PER CENT OF US IMPORTS FROM HONG KONG WERE ELIGIBLE FOR TARIFF PREFERENCE, BUT ONLY 14 PER CENT ACTUALLY BENEFITED BECAUSE OF EXCLUSIONS ON VARIOUS GROUNDS.

IN 1982, HONG KONG HAD A FAR LARGER PERCENTAGE OF ITS THEORETICALLY ELIGIBLE TRADE DENIED DUTY-FREE TREATMENT THAN THE OTHER MAJOR BENEFICIARIES AS A GROUP. WE VALUE THE PREFERENCES WE DO GET. SMALL PERCENTAGE AS THEY ARE. AND ARE ANXIOUS THAT NO FURTHER DISCRETIONARY EXCLUSIONS FROM ELIGIBILITY SHOULD BE IMPOSED, HE EMPHASISED.

/MR MACLEOD