XN000022-1984-05-14 — Page 2

MONDAY, MAY 14, 1984

WEAK GROUNDS FOR RESTRAINTS ON HK WATCHES

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HONG KONG IS NOT HAPPY WITH THE CONTINUED IMPORT RESTRAINTS IMPOSED BY FRANCE ON HONG KONG QUARTZ WATCHES.

THIS WAS STATED TODAY (MONDAY) BY THE DIRECTOR OF TRADE, MR HAMISH MACLEOD, WHEN HE OPENED THE THIRD HONG KONG WATCH AND CLOCK FAIR.

MR MACLEOD SAID THAT THE RECENT DECISION BY THE EUROPEAN COMMUNITY COMMISSION TO AUTHORISE FRANCE TO INTRODUCE A TEMPORARY QUOTA ON IMPORTS OF DIGITAL QUARTZ WATCHES +REPRESENTS AN IMPROVEMENT ON THE PREVIOUS IMPROPER AND DISCRIMINATORY RESTRICTIONS MAINTAINED BY FRANCE AGAINST HONG KONG SINCE 1981.+

IT SOUGHT TO BRING THE FRENCH MEASURE IN LINE WITH THE PROVISIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE.

+HOWEVER, WE CANNOT BE EXPECTED TO BE HAPPY ABOUT THE CONTINUATION OF RESTRAINTS FOR WHICH THERE ARE SUCH WEAK LOGICAL GROUNDS, HE SAID.

DESPITE SUCH PROBLEMS. MR MACLEOD EXPRESSED CONFIDENCE THAT HONG KONG'S WATCH AND CLOCK INDUSTRY, WITH ITS ENTERPRISE, SKILL AND HARD WORK, WOULD BE ABLE TO CONTINUE WITH ITS HEALTHY DEVELOPMENT.

+HAVING ESTABLISHED ITSELF AS ONE OF THE MOST FORMIDABLE SUPPLIERS OF WATCHES IN THE WORLD. BOTH IN QUANTITY AND VALUE TERMS, I AM CERTAIN THAT WE CAN MAINTAIN AND CONSOLIDATE THAT POSITION, WITH THE INJECTION OF MORE INVESTMENTS IN EQUIPMENT AND TECHNOLOGY, HE ADDED.

IN QUANTITY, HONG KONG HAS BEEN THE WORLD'S LARGEST EXPORTER OF WATCHES SINCE 1978. IN 1982, HONG KONG OVERTOOK JAPAN AS THE WORLD'S SECOND LARGEST EXPORTER OF WATCHES BY VALUE AFTER SWITZERLAND.

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