XN000022-1985-05-21 — Page 3

N

TUESDAY, MAY 21, 198!

HO SPEAKS ON MOST-FAVOURED-NATION RIGHTS FOR HK UNDER GATT

******

THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO, SAID TODAY (TUESDAY) THAT HONG KONG'S TRADING PARTNERS MUST OBSERVE +OUR MOST-FAVOURED-NATION RIGHTS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)+ SO THAT THE TERRITORY COULD CONTINUE TO PROSPER AND PROVIDE THEM WITH OPPORTUNITIES FOR TRADE, INDUSTRY AND SERVICES.

MR HO WAS SPEAKING TO REPORTERS AT THE AIRPORT SHORTLY AFTER HIS TOUR OF SIX EUROPEAN CAPITALS WHERE HE MET MINISTERS AND SENIOR OFFICIALS TO EXCHANGE VIEWS ON THE FUTURE OF THE MULTI-FIBRE ARRANGEMENT (MFA) AND TO DISCUSS OTHER MATTERS OF COMMON INTEREST.

DURING HIS DISCUSSIONS WITH THE EUROPEAN OFFICIALS, MR HO STRESSED THE FAVOURABLE DEVELOPMENTS IN HONG KONG SINCE THE CONCLUSION OF THE SINO-BRITISH AGREEMENT ON THE TERRITORY'S FUTURE LAST YEAR.

+I DREW ATTENTION TO THE OPPORTUNITIES THAT EXIST IN HONG KONG'S INCREASINGLY SOPHISTICATED MARKET FOR THE WHOLE SPECTRUM OF HIGH QUALITY PRODUCTS FROM EUROPE AND ELSEWHERE, MADE POSSIBLE BY OUR RISING STANDARD OF LIVING AND OUR OPEN ECONOMY WHICH HAS NO TARIFFS OR OTHER BARRIERS TO TRADE.

+OUR EXCELLENT LOCATION, TOGETHER WITH MODERN COMMUNICATIONS AND OTHER SERVICES, IS ALSO LEADING TO THE INCREASING IMPORTANCE OF HONG KONG AS AN ENTREPOT FOR CHINA AND OUR PART OF THE PACIFIC RIM, HE SAID.

MR HO POINTED OUT THAT THE MFA AND ITS PRECURSORS HAD EXISTED FOR SOME 25 YEARS.

+NOW THAT INDEPENDENT STUDIES LIKE THAT OF PROFESSOR SILBERSTON IN BRITAIN HAVE SHOWN THAT IT IS TECHNOLOGICAL IMPROVEMENTS RATHER THAN IMPORTS WHICH ARE THE MAIN CONTRIBUTORS TO DECLINE IN TEXTILE EMPLOYMENT, AND AS SUCH EMPLOYMENT NOW COMPRISES LESS THAN THREE PER CENT OF THE WORK FORCE IN THE COMMUNITY AS WELL AS THE UNITED STATES, IT WAS TIME THAT INTERNATIONAL TRADE IN TEXTILES SHOULD COME BACK WITHIN THE RULES OF THE GATT WHICH ALREADY GOVERN THE INTERNATIONAL TRADE IN OTHER PRODUCTS, HE SAID.

MR HO ADDED THAT WHILE A NUMBER OF IMPORTANT OBSERVERS SHARED HONG KONG'S AIM OF AN ULTIMATE RETURN TO GATT RULES FOR THE TEXTILES TRADE, THERE WAS GENERAL AGREEMENT IN EVERY COUNTRY HE VISITED, THAT, AT LEAST IN THE SHORT TERM, THE MFA SHOULD BE RENEWED ON MORE LIBERAL LINES.

REFERRING TO