XN000022-1984-03-14 — Page 11

WEDNESDAY, MARCH 14, 1984

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EEC STUDY COMPLICATES WATCH QUOTA ISSUE

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THE POSITION REGARDING THE QUANTITATIVE RESTRICTIONS IMPOSED BY FRANCE ON HONG KONG QUARTZ WATCHES HAS BEEN COMPLICATED BY AN EEC STUDY TO DETERMINE WHETHER THERE IS A CASE FOR PROTECTION OF THE WATCH INDUSTRY IN THE EEC.

THIS WAS STATED TODAY (WEDNESDAY) BY THE SECRETARY FOR TRADE AND INDUSTRY, THE HON E.P. HO, AT THE LEGISLATIVE COUNCIL MEETING IN REPLY TO A QUESTION BY DR THE HON FRANCIS TIEN.

*THE STUDY STARTED IN OCTOBER 1983 AND A PRELIMINARY REPORT HAS BEEN ISSUED TO MEMBER STATES FOR COMMENT. HONG KONG DOES NOT CONSIDER THAT A CASE EXISTS FOR PROTECTION FOR FRANCE OR ELSEWHERE IN THE EEC. IN THIS CONNECTION, THE HONG KONG GOVERNMENT OFFICE IN BRUSSELS IS IN CLOSE CONTACT WITH THE COMMISSION AND HAVE PRESENTED IN DETAIL HONG KONG'S VIEWS ON THE MATTER.

+ I ALSO RAISED THIS ISSUE WITH THE MINISTER FOR TRADE, THE RT HON PAUL CHANNON ON MARCH 1, 1984, WHEN HE WAS IN HONG KONG. AT PRESENT WE ARE CLOSELY MONITORING THE SITUATION, SAID MR HO.

SINCE THE ADOPTION BY THE GATT COUNCIL OF THE RECOMMENDATION BY THE CONTRACTING PARTIES THAT FRANCE SHOULD TERMINATE THE RESTRICTIONS ON EIGHT HONG KONG PRODUCTS INCLUDING QUARTZ WATCHES, FRANCE HAS LIBERALISED IMPORTS OF THREE PRODUCTS, RETAINED ONE

ITEM UNDER DISCRIMINATORY SURVEILLANCE THOUGH THERE IS NO FORMAL QUOTA LIMIT, AND INCREASED THE QUOTAS FOR TWO OTHERS.

+THIS IS NOT GOOD ENOUGH AS THE ITEMS LIBERALISED CONSTITUTE ONLY 1.5 PER CENT OF TRADE IN ALL EIGHT ITEMS.

+ACCORDINGLY, ACTION HAS BEEN AND WILL CONTINUE TO BE TAKEN TO PRESS FRANCE TO IMPLEMENT THE CONTRACTING PARTIES' RECOMMENDATION IN FULL. FOR INSTANCE, THE HONG KONG REPRESENTATIVE HAS RAISED THIS ISSUE AT THREE SUBSEQUENT MEETINGS OF THE GATT COUNCIL -- ON OCTOBER 3 AND NOVEMBER 1, 1983 AND FEBRUARY 7, 1984 — AND WE ARE ENCOURAGED BY THE SUPPORT WE HAVE RECEIVED WITHIN THE GATT COUNCIL,+ MR HO SAID.

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