XN000022-1985-02-09 — Page 2

SATURDAY, FEBRUARY 9, 1985

HK WILL KEEP ON PURSUING ORIGIN RULE ISSUE

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THE DIRECTOR OF TRADE, MR HAMISH MACLEOD, SAID ON HIS RETURN FROM WASHINGTON LAST (FRIDAY) NIGHT THAT HONG KONG WOULD HAVE TO PERSIST AND KEEP ON PURSUING THE ISSUE OF THE CERTIFICATE OF ORIGIN RULES WITH THE UNITED STATES.

ANSWERING QUESTIONS FROM REPORTERS AT THE AIRPORT, MR MACLEOD SAID THAT THE UNITED STATES HAD NOT COME TO A FINAL CONCLUSION ON WHAT TO DO ON THIS PARTICULAR RULE.

HE SAID, +90 LONG AS THAT IS THE CASE, THEN CLEARLY THERE IS A LOT OF SENSE IN TRYING TO INFLUENCE THAT DECISION AND THAT IS

AT WE ARE TRYING TO DO.«

MR MACLEOD SAID THAT HONG KONG HAD A REASONABLE STAND. +WE WANTED A SOLUTION TO THE PROBLEM. WE HAVE DEFINED WHAT THE PROBLEM IS AND THE TEXTILES SURVEILLANCE BODY HAS AGREED WITH THIS THAT WHAT THE UNITED STATES HAS DONE IS AGAINST THE BILATERAL

AGREEMENT.

+WE ARE BEING PERFECTLY PRAGMATIC IN SAYING THAT WE ARE VERY HAPPY TO DISCUSS ANY SOLUTIONS WHICH THEY MAY WISH TO PROPOSE.

+THEY HAVE NOT PROPOSED ANY. WE HAVE PROPOSED SOLUTIONS. THEY HAVE NOT YET COME BACK WITH A VIEW ON THOSE SOLUTIONS, HE SAID.

MR MACLEOD SAID THAT THE UNITED STATES MIGHT HAVE A NEW IDEA. *IF SO, WE WILL DISCUSS IT,+

ASKED WHAT WERE HONG KONG'S PROPOSALS, MR MACLEOD REPLIED, THINK IT WOULD NOT BE SENSIBLE FOR ME TO DISCLOSE WHAT OUR PROPOSALS ARE: IT IS A NEGOTIATION AND ONE HAS TO KEEP SOMETHING CONFIDENTIAL.+

IN REPLY TO ANOTHER QUESTION ON WHEN THE TALKS WOULD RESUME, MACLEOD SAID WE HAVE SAID PROVISIONALLY THAT THE WEEK COMMENCING MARCH 11. IT'S GOT TO BE PROVISIONAL BECAUSE NEITHER THEY NOR US KNOW HOW FAST THEIR REVIEW PROCESS IS GOING TO PROGRESS. WE DO KNOW THAT IT HAS NOT YET GOT TO THE CABINET LEVEL. IT'S STILL AT THE WORKING LEVEL. BUT IT'S CLEARLY

NEARING THE END OF THAT PARTICULAR PROCESS.+

THE DIRECTOR STATED THAT CLEARLY EVERY WEEK THAT PASSED HONG KONG WAS LOSING ORDERS. HE SAID THAT THE QUICKER HONG KONG GOT AN ANSWER FROM THE UNITED STATES THE BETTER.

ASKED HOW MANY ORDERS HAD BEEN LOST, MR MACLEOD SAID, +WE HAVE QUOTED TO THEM THE RESULTS OF A SURVEY WE DID JUST RECENTLY OF SOME OF THE MAIN MANUFACTURERS OF SWEATERS AND IT SHOWS THAT THE ORDER BOOKS FOR DECEMBER 1984 IS 55 PER CENT DOWN AS AGAINST THE ORDER BOOKS FOR DECEMBER 1983. SO THAT'S SOME INDICATION OF THE EFFECT ON ORDERS FOR THE COMING AUTUMN SEASON.+

/MR MACLEOD