XN000022-1985-06-11 — Page 7

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TJESDAY, JUNE 11, 1985

HE SAID THE RESTRICTION ON HONG KONG ANALOGUE QUARTZ WATCHES WAS REMOVED LAST YEAR WHILE THE RESTRICTION ON IMPORTS OF HONG KONG DIGITAL QUARTZ WATCHES WAS REPLACED BY A GLOBAL QUOTA COVER ING ALL MAJOR SUPPLIERS.

+THESE RESTRICTIONS PERHAPS EXPLAIN THE FACT THAT ALTHOUGH HONG KONG'S EXPORTS OF DIGITAL WATCHES TO THE WORLD HAVE INCREASED BY 56 PER CENT IN VALUE AND 224 PER CENT IN QUANTITY, BETWEEN 1980 AND 1984, THOSE TO FRANCE DECLINED BY 78 PER CENT AND 55 PER CENT RESPECTIVELY DURING THE SAME PERIOD.

+ INCIDENTALLY, THERE IS AN INTERESTING PIECE OF STATISTICS: HONG KONG WAS THE SECOND LARGEST EXPORT MARKET FOR FRENCH CLOCK AND WATCH PARTS IN 1983, + MR HO SAID.

NOTING THAT TOYS FROM HONG KONG HAVE BEEN PUT UNDER QUANTITATIVE RESTRICTION BY THE FRENCH GOVERNMENT AS EARLY AS 1957, MR HO SAID THESE RESTRICTIONS WERE NOT JUSTIFIED UNDER THE GATT AND HAD BEEN A CAUSE OF CONCERN TO HONG KONG,

+WE WERE SLIGHTLY PLEASED WHEN THE FRENCH GOVERNMENT DECIDED LAST YEAR TO LIBERALISE SOME OF THE RESTRICTIONS, BUT THE FRENCH GOVERNMENT HAS ONLY UNDERTAKEN TO REMOVE THE RESTRICTION ON TOYS BY 1987 AND HAS SET NO DATE FOR RADIO RECEIVERS, ANOTHER RESTRICTED PRODUCT FROM HONG KONG, HE SAID.

MR HO POINTED OUT THAT FRANCE WAS HONG KONG'S NUMBER ONE SUPPLIER OF BRANDY, WINES, PERFUMES AND COSMETICS AND A MAJOR SUPPLIER IN HANDBAGS, FASHION CLOTHING, FURSKINS, ELECTRIC TRAFFIC CONTROL EQUIPMENT AND HELICOPTERS.

HELICOPTERS, AND TRADE BETWEEN THE TWO PLACES HAD INCREASED SIGNIFICANTLY BY SEVEN TIMES DURING THE PAST DECADE, WITH THE BALANCE IN FRANCE'S FAVOUR, NINE OUT OF TEN YEARS.

TEXTILE QUOTA TRANSFER RULES REVISED

****

A MAJOR REVISION OF THE QUOTA TRANSFER RULES WAS ANNOUNCED TODAY (TUESDAY).

A TRADE DEPARTMENT SPOKESMAN SAID THE EXECUTIVE COUNCIL HAD APPROVED THE REVISION, WHICH HAD ALSO RECEIVED THE FULL SUPPORT OF THE TEXTILES ADVISORY BOARD.

THE REVISED RULES PROVIDE THAT:

(A)

THE AMOUNT OF A QUOTA WHICH A HOLDER CAN TRANSFER OUT TO SOMEONE ELSE BEFORE A REDUCTION IN HIS QUOTA IS TRIGGERED IS REDUCED FROM 50 PER CENT TO 35 PER CENT.

/(B) THE NEW