XN000022-1984-07-11 — Page 29

WEDNESDAY, JULY 11, 1984

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MOVE TO IMPROVE CARGO FLOW

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A BILL TO HELP IMPROVE THE FREE FLOW OF TRANSHIPMENT CARGO THROUGH HONG KONG WAS READ A SECOND TIME IN THE LEGISLATIVE COUNCIL TODAY.

THE SECRETARY FOR TRADE AND INDUSTRY, THE HON ERIC HO, MOVED THE SECOND READING OF THE IMPORT AND EXPORT (AMENDMENT) (NO. 2) BILL.

MR HO SAID THAT WHENEVER THE IMPORT AND EXPORT OF ANY ARTICLE IS PROHIBITED, EXCEPT UNDER LICENCE, THESE LICENSING REQUIREMENTS ALSO APPLY TO CARGO BEING TRANSHIPPED THROUGH HONG KONG AND INVOLVING A CHANGE OF CARRIER WHETHER TRAIN, SHIP OF AIRCRAFT.

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+THIS HINDERS AN ELEMENT OF OUR ENTREPOT TRADE, PARTICULARLY FOR OUTWARD AIR CARGO WHICH OFTEN HAS TIGHT SCHEDULES NORMALLY INVOLVING A STOP-OVER IN HONG KONG OF NOT MORE THAN A FEW HOURS.

THE BILL WOULD EMPOWER THE DIRECTOR OF TRADE TO EXEMPT ANY PERSON FROM LICENSING REQUIREMENTS RELATING TO TRANSHIPMENT THROUGH THE TERRITORY OF CERTAIN PROHIBITED CARGO AND RESERVED COMMODITIES, AND TO IMPOSE CONDITIONS UPON WHICH SUCH EXEMPTION WILL BE GRANTED OR REVOKED.

THIS WAS A DEVELOPMENT OF INTERIM ARRANGEMENTS INTRODUCED IN 1975, MR HO EXPLAINED,

+1 WOULD LIKE TO ASSURE THIS COUNCIL THAT SAFEGUARDS WILL BE BUILT IN TO MAINTAIN HONG KONG'S INTEGRITY IN THE EYES OF OUR TRADING PARTNERS IN RESPECT OF INTERNATIONAL UNDERTAKING WE HAVE GIVEN,

+ IN PARTICULAR, I WOULD STRESS THAT THERE WOULD BE NO DILUTION OF DETERRENTS TO, OR ENFORCEMENT AGAINST, SMUGGLING AND IMPORT AND EXPORT FRAUD. THE AIM IS TO FACILITATE HONG KONG'S TRANSHIPMENT TRADE, AND THUS IMPROVE ITS FUNCTIONING AS AN ENTREPOT.+

MOVING THE SECOND READING OF THE RESERVED COMMODITIES (AMENDMENT) BILL 1984, MR HO SAID THAT IT TOO WOULD FACILITATE THE TRANSHIPMENT TRADE IN THE COMMODITIES WITHIN THE AMBIT OF THE REGULATIONS MADE UNDER THE PRINCIPAL ORDINANCE.

+ IT WILL THUS IMPROVE HONG KONG'S FUNCTIONING AS AN ENTREPOT,+ HE SAID.

DEBATE ON THE TWO BILLS WAS ADJOURNED.

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