XN000022-1983-09-23 — Page 3

ru

FRIDAY, SEPTEMBER 23, 1983

HE ADDED THAT THE IMPORTANCE OF THE QUOTA SYSTEM IS UNDERLINED BY THE FACT THAT TEXTILES AND CLOTHING ACCOUNT FOR MORE THAN 40 PER CENT OF HONG KONG'S TOTAL DOMESTIC EXPORTS.

THE 1983 REVIEW STARTED IN FEBRUARY THIS YEAR. IT WAS INITIALLY UNDERTAKEN BY AN IN-HOUSE REVIEW COMMITTEE COMPOSED OF OFFICIALS OF THE TRADE AND INDUSTRY BRANCH OF THE GOVERNMENT SECRETARIAT AND OF THE TRADE, INDUSTRY AND CUSTOMS AND EXCISE DEPARTMENTS.

THE COMMITTEE INVITED COMMENTS AND SUGGESTIONS ON THE EXISTING QUOTA SYSTEM FROM TRADE AND INDUSTRIAL ASSOCIATIONS AND MEMBERS OF THE PUBLIC. IT RECEIVED 27 CONTRIBUTIONS AND, HAVING CONSIDERED THEM IN DETAIL, SUBMITTED ITS COMMENTS AND PROPOSALS TO THE TEXTILES ADVISORY BOARD IN JUNE.

THE BOARD FURTHER CONSIDERED THE ISSUES INVOLVED IN DETAIL AND EVENTUALLY PRESENTED A COMPREHENSIVE REPORT TO THE GOVERNMENT IN AUGUST.

DESCRIBING THE MODIFICATIONS WHICH HAVE BEEN RECOMMENDED BY THE TEXTILES ADVISORY BOARD AND APPROVED BY THE GOVERNMENT, MR MACLEOD SAID THEY WERE MAINLY CONCERNED WITH THE QUOTA TRANSFER SYSTEM AND THE OPERATION OF FREE QUOTA SCHEMES.

+THIS CONCENTRATION ON THESE ASPECTS IS NOT SURPRISING,+ SAID MR MACLEOD. THEY BOTH RELATE TO ONE OF OUR CENTRAL CONCERNS, NAMELY HOW TO ENSURE THAT NEWCOMERS TO THE INDUSTRY CAN HAVE A REASONABLE CHANCE OF OBTAINING QUOTA. THE TRANSFERABILITY OF QUOTAS

IT HAS HAS FOR MANY YEARS BEEN A CENTRAL PART OF OUR QUOTA SYSTEM. ALSO BEEN THE MOST CONTROVERSIAL ASPECT OF THE SYSTEM AND THE SUBJECT OF CRITICAL COMMENT FROM TIME TO TIME.+

THE TEXTILES ADVISORY BOARD HAS CONCLUDED THAT THE TRANSFER SYSTEM SHOULD CONTINUE IN BEING FOR THE FOLLOWING PURPOSES.

* TO FACILITATE OPTIMUM UTILISATION OF QUOTAS

BY HONG KONG AS A WHOLE BY PROVIDING FLEXIBILITY TO THE TRADE,

*

*

TO PROVIDE THE OPPORTUNITY FOR COMPANIES WITH NO OR INSUFFICIENT QUOTAS TO OBTAIN QUOTAS THROUGH THE TRANSFER SYSTEM,

TO ENCOURAGE QUOTAS TO MOVE FROM THE HANDS OF THOSE WHO ARE NO LONGER ABLE TO USE THEM TO THOSE WHO ARE.

THE BOARD HAS, HOWEVER, RECOMMENDED IMPROVEMENTS IN THE EXISTING RULE REGARDING PERSISTENT TRANSFERORS.

/UNDER THIS