XN000022-1985-04-22 — Page 3

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MONDAY, APRIL 22, 1985

HOWEVER, MR MACLEOD SAID, +WE ARE UNDER NO ILLUSIONS THAT THIS WILL BE EASILY OBTAINED. THE ATMOSPHERE IN THE U.S.A. IS NOW SO IRRATIONAL THAT UNFORTUNATELY UNREASONABLE DEMANDS AND HARASSMENT CANNOT BE RULED OUT.+

ON PROTECTIONIST MEASURES, THE DIRECTOR SAID THAT SUCH PROTECTIONIST PRESSURES IN THE LONG RUN CONCERNED US EVEN WHEN THEY DID NOT AFFECT US DIRECTLY (AS WITH AUTOS AND STEEL) AS HONG KONG RELIED ON THE GATT.

+THE GATT IS THE ONLY MULTILATERAL TREATY WHICH LAYS DOWN AGREED RULES FOR INTERNATIONAL TRADE, AND THOSE WHO SUBSCRIBE TO IT ACCOUNT FOR MORE THAN FOUR-FIFTHS OF WORLD TRADE,

+THE MOST IMPORTANT RULE ENSHRINED IN THE GATT IS THAT TRADE

THE MUST BE CONDUCTED ON THE BASIS OF NON-DISCRIMINATION +MOST-FAVOURED-NATION+ CLAUSE.

—

+THUS, FOR EXAMPLE, IF COUNTRY +A+ HAD GOOD REASONS FOR PROTECTING IN SOME WAY ITS FOOTWEAR INDUSTRY, IT WOULD NEED TO APPLY ANY PROTECTIVE MEASURES TO ALL SUPPLIERS, NOT JUST TO THE ONE OR TWO WHICH MOST CONCERNED IT.

+THIS, AND THE LIKELIHOOD THAT COUNTRY +A+ WOULD HAVE TO COMPENSATE THOSE INJURED OR FACE RETALIATION, HELPS TO DISCOURAGE MEMBERS FROM RESORTING TO PROTECTIVE MEASURES TOO LIGHTLY.+

+DESPITE THE MANY EXCEPTIONS TO THE GATT. + MR MACLEOD SAID +WE AND MANY OTHERS ARE CONVINCED THAT IT IS BETTER TO HAVE SOME RULES, AND SOME FORUM FOR APPEAL, THAN NONE AT ALL,

+HENCE OUR CONCERN OVER PROTECTIONIST PRESSURES IN GENERAL RELATE TO THE WEAKENING OF THE GATT, WHOSE EFFECTIVENESS DEPENDS IN THE END ON THE POLITICAL WILL OF THE MAJOR TRADING BLOCS TO MAKE IT WORK.+

NEVERTHELESS, MR MACLEOD SAID HE OVERALL WAS CONFIDENT THAT THE PROSPECTS FOR CONTINUED EXPANSION OF TRADE AND HENCE OF SHIPPING, WAS VERY GOOD.

HE WELCOMED ANY ASSISTANCE SHIPPERS COULD GIVE TO PUSHING A FREE TRADE LINE IN THE DEVELOPED COUNTRIES, AND IN CORRECTING ANY MISTAKEN IMPRESSIONS OF HONG KONG.

+WE MUST TRY TO GET A MORE RATIONAL AND BALANCED DEBATE ON THESE 19 UES GOING PARTICULARLY IN THE U.S.A.,+ HE SAID.

++

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