XN000022-1985-07-09 — Page 4

TUESLAY, JULY 9, 1985

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MR HO POINTED OUT THAT HONG KONG'S IMPORTS FROM THE U.S. HAVE GROWN AT AN AVERAGE OF 13 PER CENT PER ANNUM BETWEEN 1974 AND 1984. IN PER CAPITA TERMS U.S. IMPORTS INTO THE TERRITORY IN 1984 REPRESENTED ABOUT U.S.$570 PER HEAD. SUBSTANTIALLY MORE THAN THE EEC AT $170, JAPAN AT $200, KOREA AT $150, TAIWAN AT $270 AND AUSTRALIA AT $310.

HONG KONG PROVIDES A BASE FOR OVER 800 U.S. FIRMS AND IT WELCOMES OVERSEAS INVESTMENT OFFERING AN ENVIRONMENT IN WHICH THERE IS FREE FLOW OF CAPITAL AND OF RETURN ON INVESTMENT WITHOUT EXCHANGE CONTROLS.

THE U.S. IS THE LARGEST SOURCE OF OVERSEAS INVESTMENT IN THE MANUFACTURING INDUSTRY, ACCOUNTING FOR 54 PER CENT OF TOTAL OVERSEAS INVESTMENT. OVER 120

OVER 120 FACTORIES ARE WHOLLY OR PARTLY OWNED BY U.S. INTERESTS, EMPLOYING 40 000 WORKERS, OVER FOUR PER CENT OF THE INDUSTRIAL WORKFORCE. SALES OF THESE CONCERNS IN 1983 AMOUNTED TO U.S.$1.7 BILLION, NEARLY 10 PER CENT OF HONG KONG'S DOMESTIC EXPORTS IN THE YEAR.

+ IN THE IMPORTANT AREA OF PROTECTION OF INTELLECTUAL PROPERTY RIGHTS, HONG KONG HAS UNIQUELY STRONG LEGISLATION WHICH IS

IN VIGOROUSLY ENFORCED BY THE CUSTOMS AND EXCISE DEPARTMENT AND, CIVIL AREAS, BY THE PRIVATE SECTOR. WE BELIEVE THAT THE REMEDIES AVAILABLE UNDER OUR LEGISLATION ARE UNRIVALLED ANYWHERE IN THE WORLD, + MR HO SAID.

STRESSING THE IMPORTANCE OF TEXTILES AND APPAREL TO HONG KONG, MR HO EXPRESSED DISMAY AND ALARM AT THE JENKINS BILL: +WHICH WE BELIEVE TO BE IN NO-ONE'S INTEREST, LEAST OF ALL THE U.S.+

THE BILL WOULD RESULT IN INCREASED COSTS TO CONSUMERS WHICH WOULD BE MOST CONCENTRATED IN LOWER INCOME GROUPS, IT WAS IN CONFLICT WITH THE GATT, THE MFA AND WITH BILATERAL AGREEMENTS BETWEEN THE U.S. AND MANY DEVELOPING COUNTRIES, IT WAS DISCRIMINATORY IN THAT LIMITS WOULD NOT APPLY TO CANADA AND THE EEC, IT WOULD EXACERBATE EXISTING FRICTIONS IN DEVELOPED-DEVELOPING COUNTRY RELATIONS, IT WOULD INVITE RAPID AND DAMAGING RETALIATION AGAINST U.S. EXPORTS, AND IT WOULD THREATEN WORLD TRADE GENERALLY.

+ IT WOULD CERTAINLY NOT FURTHER THE PROPOSAL, TO WHICH THE U.S. IS COMMITTED, OF LAUNCHING A MAJOR ROUND OF NEW TRADE NEGOTIATIONS TO HALT AND REVERSE THE SPREAD OF PROTECTIONISM, + SAID MR HO WHO ALSO POINTED OUT THAT IF DEVELOPING COUNTRIES COULD NOT EARN FOREIGN CURRENCY THEY COULD NOT SPEND IT OR USE IT TO SERVICE THEIR DEBTS.

+ IN 1983 FIGURES, DEVELOPING COUNTRIES PURCHASED MORE THAN U.S.$75 BILLION WORTH, ABOUT 38 PER CENT, OF U.S. MERCHANDISE EXPORTS, EXCEEDING U.S. EXPORTS TO WESTERN EUROPE AND JAPAN COMBINED, + HE SAID.

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