XN000022-1984-08-31 — Page 2

FRIDAY, AUGUST 31, 1984

CONCERN GROWING OVER U.S. RULES OF ORIGIN

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THE DIRECTOR OF TRADE, MR HAMISH MACLEOD, SAID TODAY (FRIDAY) THAT NEXT WEEK'S MEETING IN GENEVA OF THE TEXTILES COMMITTEE OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) SHOULD HELP TO DEMONSTRATE THE LARGE NUMBER OF COUNTRIES, BOTH DEVELOPED AND DEVELOPING, WHO WERE SERIOUSLY CONCERNED ABOUT THE PROPOSED U.S. RULES OF ORIGIN ON TEXTILES EXPORTS TO AMERICA.

HE SAID: +! DON'T THINK YOU SHOULD JUDGE IT BY WHETHER IT SUCCEEDS IN GETTING THE U.S. RIGHT AWAY TO WITHDRAW THE REGULATIONS, THAT WOULD BE AN UNFAIR TEST.+

MR MACLEOD, WHO WILL LEAVE HONG KONG BY AIR FOR GENEVA TONIGHT, WAS SPEAKING TO REPORTERS AFTER A MEETING WITH REPRESENTATIVES OF THE FIVE CERTIFICATE-OF-ORIGIN ISSUING ORGANISATIONS, TOGETHER WITH THE HONG KONG EXPORTERS ASSOCIATION, THE HONG KONG JAPANESE CHAMBER OF COMMERCE AND INDUSTRY AS WELL AS THE AMERICAN CHAMBER OF COMMERCE.

THE DIRECTOR SAID THAT THE SEPTEMBER A MEETING IN GENEVA WOULD PROVIDE A CHANCE FOR A DEMONSTRATION OF THE BREADTH AND DEPTH OF ADVERSE REACTIONS TO THE AMERICAN PROPOSALS TO BE MADE EVIDENT.

+

+ INDEED, HE SAID, IT WILL BE QUITE APPARENT THAT A LARGE NUMBER OF COUNTRIES HAVE OBJECTIONS FOR ONE REASON OR ANOTHER TO THESE PROPOSALS. I THINK IT WILL ALSO ENABLE THE ARGUMENTS AGAINST THEM TO BE AIRED, TO BE MADE MORE POINTED AND IT WILL CERTAINLY BE

IN OTHER WORDS, ONE MEANS OF INFLUENCING THE EVENTUAL OUTCOME INFLUENCING THE U.S. ATTITUDE ON THE REGULATIONS.

I THINK

+BUT I DON'T THINK THAT WILL BE THE END OF THE STORY. WE HAVE TO KEEP PURSUING THE MULTILATERAL AVENUE, WE HAVE TO KEEP PURSUING THE BILATERAL AVENUE, WE HAVE TO KEEP PURSUING THE PRESSURE THROUGH LOBBYING, THROUGH PRESSURE GROUPS AND SO ON. THERE IS A WHOLE RANGE OF THINGS GOING ON AND NO ONEOCCURRENCE, NO ONE TEXTILE COMMITTEE MEETING, NO ONE NEGOTIATION WILL BE THE FINAL ANSWER.+

MR MACLEOD SAID THAT. FOR EXAMPLE, THE SUBJECT COULD IF NECESSARY CONTINUE TO BE DISCUSSED AT THE TEXTILE COMMITTEE AT FUTURE MEETINGS OR IT COULD GO INTO SOME OTHER MULTILATERAL FORUM, SUCH AS THE GATT COUNCIL.

THE DIRECTOR DESCRIBED AS +VERY USEFUL+ THE MEETING HE HAD WITH THE CERTIFICATE-OF-ORIGIN ISSUING ORGANISATIONS, THE EXPORTERS ASSOCIATION, AND THE CHAMBERS OF COMMERCE.

/+I THINK