XN000022-1985-05-02 — Page 7

THURSDAY,

1

+ 2, 1985

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THE SPOKESMAN EXPLAINED THAT THE U.S. GSP PRODUCT LIST IS REVIEWED EVERY YEAR. A PRODUCT MAY BE EXCLUDED FROM THE SCHEME UNDER EITHER A +COMPETITIVE NEED+ CRITERION OR THE +GRADUATION+ CRITERION OR AS A RESULT OF PETITIONS MADE TO THE UNITED STATES GOVERNMENT BY UNITED STATES PRODUCERS.

SOME HONG KONG PRODUCTS MAY BE EXCLUDED FROM THE GSP DUTY-FREE TREATMENT BECAUSE OF THE COMPETITIVE NEED CRITERION. UNDER THE STATUTORY COMPETITIVE NEED PROVISIONS, A COUNTRY LOSES GSP DUTY-FREE TREATMENT FOR A PRODUCT IF ITS SHIPMENTS OF THE PRODUCT IN THE PRECEDING CALENDAR YEAR EQUALLED OR EXCEEDED 50 PER CENT OF THE VALUE OF TOTAL U.S. IMPORTS OF THE PRODUCT OR WERE MORE THAN A CERTAIN DOLLAR VALUE.

HOWEVER, THE SPOKESMAN SAID: THE PRODUCTS WHICH ARE EXCLUDED FROM THE SCHEME UNDER THE NORMAL COMPETITIVE NEED CRITERION ARE NOT YET AVAILABLE AND THE DEPARTMENT WILL NOTIFY THE TRADE WHEN THE DETAILS ARE RECEIVED.+

MONETARY STATISTICS FOR MARCH 1985

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BOTH HONG KONG DOLLAR DEPOSITS AND FOREIGN CURRENCY DEPOSITS CONTINUED TO GROW IN MARCH, ACCORDING TO MONETARY STATISTICS PUBLISHED TODAY. FOREIGN CURRENCY DEPOSITS ROSE SUBSTANTIALLY DURING THE MONTH, REFLECTING AT LEAST IN PART A CONTINUED INCREASE IN FOREIGN CURRENCY SWAP DEPOSITS AS THE DIFFERENTIAL BETWEEN MONEY MARKET RATES AND THE HKAB DEPOSIT RATES WIDENED.

HONG KONG DOLLAR CASH DEMAND FELL BACK DURING THE MONTH AFTER A SUBSTANTIAL SEASONAL INCREASE AT THE CHINESE NEW YEAR IN FEBRUARY.

REFLECTING THESE CHANGES, THE HONG KONG DOLLAR COMPONENTS OF THE MONEY SUPPLY ON THE BROADER DEFINITIONS (HK$M2 AND HK$M3) CONTINUED TO INCREASE. BUT THE NARROWEST DEFINITION (HK$M1) FELL. TOTAL MONEY SUPPLY ON ALL DEFINITIONS SHOWED SIMILAR MOVEMENTS.

LOANS TO FINANCE VISIBLE TRADE OF HONG KONG CONTINUED TO INCREASE FOR THE SECOND CONSECUTIVE MONTH, AFTER A SUBSTANTIAL DECREASE IN JANUARY. BUT OTHER LOANS FOR USE IN HONG KONG SHOWED VIRTUALLY NO CHANGE.

/DEPOSITS