XN000022-1984-10-04 — Page 10

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THURSDAY, OCTOBER 4, 1984

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+THIS IS ATTRIBUTABLE TO THE COMBINATION OF RELATIVELY MODERATE INCREASES IN WORLD COMMODITY PRICES AND THE STABILITY OF THE HONG KONG DOLLAR UNDER THE LINKED EXCHANGE RATE SYSTEM. LET ME MAKE CLEAR THAT WE HAVE NO PLANS TO CHANGE THAT SYSTEM, HE SAID.

LOOKING AHEAD TO 1985, SIR EDWARD FELT THAT HONG KONG SHOULD CONTINUE TO BENEFIT FROM THE EXPECTED GROWTH IN THE WORLD ECONOMY.

+HOWEVER, HONG KONG REMAINS AS ALWAYS VULNERABLE TO EXTERNAL EVENTS, AND WE MUST BE ALIVE TO THE POSSIBILITY THAT THE WORLD ECONOMY MAY GROW LESS RAPIDLY THAN NOW FORESEEN,+ HE STATED.

+

BUT HE SAID, +WHATEVER HAPPENS, THE GOVERNMENT WILL CONTINUE WITH PRUDENT AND CONSISTENT POLICIES INVOLVING MINIMUM INTERVENTION, WHICH, IN THE PAST, HAVE BEEN INSTRUMENTAL

IN FOSTERING SUSTAINED ECONOMIC GROWTH,+

POINTING TO CONTINUING PROTECTIONIST PRESSURES, HE SAID, +WE HAVE BEEN PARTICULARLY CONCERNED WITH MEASURES TAKEN IN THE UNITED STATES, OUR LARGEST MARKET.+

A U.S. PRESIDENTIAL ANNOUNCEMENT IN DECEMBER LAST YEAR HAD LED TO THE RE-ESTABLISHMENT OF RESTRAINT LIMITS ON A NUMBER OF ITEMS, WHICH WERE SUPPOSED TO HAVE BEEN LIBERALISED UNDER THE 1982-1987 U.S.-HONG KONG TEXTILES AGREEMENT.

MORE RECENTLY, NEW CUSTOMS REGULATIONS HAD BEEN INTRODUCED WHICH, APART FROM BEING DISRUPTIVE TO TRADE, WERE INCONSISTENT WITH THE BASIC PRINCIPLES ON WHICH HONG KONG'S BILATERAL AGREEMENT HAD BEEN CONCLUDED.

LEGISLATIVE PROPOSALS FOR THE RENEWAL OF THE U.S. SCHEME UNDER THE GENERAL ISED SYSTEM OF PREFERENCES, WHICH WOULD EXPIRE IN JANUARY 1985, THREATENED TO AFFECT HONG KONG.

+ THE GOVERNMENT VIEWS ALL OF THESE DEVELOPMENTS WITH GREAT CONCERN. WE HAVE ALREADY MADE KNOWN OUR VIEWS TO THE GOVERNMENT OF THE UNITED STATES AND, IN RESPECT OF THE TEXTILES ISSUE, WILL CONTINUE TO MAKE EVERY EFFORT TO RESTORE THE POSITION BOTH THROUGH BILATERAL CONSULTATIONS AND IN CONJUNCTION WITH OTHER PARTICIPANTS IN THE GATT AND MFA,+ SIR EDWARD SAID.

HE ALSO REPORTED THAT IT WAS GENERALLY AGREED THAT A MODERN EXHIBITION CENTRE WOULD BE OF VALUE TO THE EXPANSION OF HONG KONG'S TRADE.

+THE HONG KONG TRADE DEVELOPMENT COUNCIL HAS RECENTLY INVITED DEVELOPMENT PROPOSALS FOR THE VALUABLE SITE ON THE WAN CHAI WATERFRONT TO HOUSE SUCH AN EXHIBITION CENTRE. THIS WILL FULFIL A LONG FELT NEED, HE SAID.

/STRESSING THE

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