XN000022-1985-06-30 — Page 2

SUNDAY, JUNE 30, 1985

JENKINS BILL THREAT STILL TO SINK HOME

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THE THREAT TO AMERICAN CORPORATIONS IN SECTORS REMOVED FROM TEXTILES AND APPAREL THAT IS REPRESENTED BY THE JENKINS BILL HAS NOT YET SUNK HOME, ACCORDING TO HONG KONG'S COMMISSIONER FOR COMMERCIAL AFFAIRS IN NEW YORK, MR BILL DORWARD.

A LETTER HAS BEEN SENT BY MR DORWARD TO 1 000 HIGH LEVEL CONTACTS IN THE UNITED STATES WARNING OF THE AWFUL ECONOMIC CONSEQUENCES OF PROTECTIONISM AND DRAWING ATTENTION TO THE JENKINS BILL WHICH SEEKS TO RADICALLY REDUCE TEXTILE AND APPAREL IMPORTS.

+THE LEGISLATIVE PROGRESS OF THE BILL IS HARD TO PREDICT, + HE WROTE, +BUT THE TRADE SUB-COMMITTEE OF THE SENATE FINANCE COMMITTEE HAS CALLED HEARINGS ON JULY 15.

+ONE ASSUMES THAT ON THIS AND SIMILAR OCCASIONS THE VOICES OF U.S. CORPORATIONS WHO STAND EVENTUALLY TO LOSE SUBSTANTIALLY IN TERMS OF EXPORT MARKETS AS A RESULT OF THIS PROPOSED ACTION WILL BE HEARD IN OPPOSITION, FOR IT IS ONLY THEY WHO CAN EFFECTIVELY SWAY THE OUTCOME.

+THE RETAIL INDUSTRY, THE IMPORTERS AND THE GRAIN EXPORTERS ARE ALREADY EXERCISED, BUT THERE IS AS YET LITTLE INDICATION THAT THE WIDER IMPLICATIONS HAVE SUNK HOME IN INDUSTRIES, SERVICE AND MANUFACTURING, FAR REMOVED FROM TEXTILES AND APPAREL. THE IR MARKETS ARE, HOWEVER, BECOMING VERY CONCERNED.+

MR DORWARD SAID THAT THE TEXTILE AND APPAREL TRADE ENFORCEMENT BILL, +IS PROGRESSING LIKE A JUGGERNAUT, FUELLED BY A U.S.$ 500 000 A MONTH LOBBYING CAMPAIGN WHICH APPARENTLY REPRESENTS AN ATTEMPT ON THE PART OF INDUSTRY AND UNIONS TO TURN BACK A TIDE OF WORLD OPINION MOVING TOWARD GREATER LIBERALISATION IN THIS MANUFACTURING SECTOR WHICH HAS ALREADY ENJOYED, FOR 25 YEARS, GREATER PROTECTION THAN ANY OTHER SINCE THE INDUSTRIAL REVOLUTION.+

THE BILL WOULD CYNICALLY LEAVE THE MAIN SOURCE OF THE GROWTH IN IMPORTS, DEVELOPED COUNTRIES, UNSCATHED WHILE HITTING AT THIKU WORLD SUPPLIERS. IT WOULD CONTRAVENE THE MFA. IT WOULD INVITE RAPID AND DAMAGING RETALIATION. IT WOULD THREATEN WORLD TRADE GENERALLY. IT WOULD NOT FURTHER THE WISH OF THE U.S. TO SEE A MAJOR NEW ROUND OF TRADE NEGOTIATIONS TO HALT AND REVERSE THE SPREAD OF PROTECTIONISM AND TO ACHIEVE GREATER LIBERALISATION OF TRADE AND SERVICES, SAID MR DORWARD.

+MEMORIES OF THE AWFUL ECONOMIC CONSEQUENCES OF PROTECTIONISM IN THE THIRTIES PROMPT ONE TO RECALL SANTAYANA'S APHORISM THAT THOSE WHO DO NOT LEARN FROM THE MISTAKES OF HISTORY ARE DOOMED TO REPEAT THEM, HE SAID.