XN000022-1985-07-25 — Page 5

THURSDAY, JULY 25, 1985

ASKED IF THERE HAD BEEN ANY REACTION FROM THE U.K. ON THE AWARDING OF THE LRT CONTRACT TO AN AUSTRALIAN CONSORTIUM, HE SAID THERE HAD BEEN NONE TO HIS KNOWLEDGE,

ON WHETHER THE GOVERNMENT WOULD GO AHEAD WITH THE ERP SCHEME, HE SAID THE CONSULTANT'S REPORT WAS BEING LOOKED AT BY THE TRANSPORT BRANCH.

ASKED IF THERE WOULD BE A PAY RISE FOR TOP GOVERNMENT OFFICERS, HE SAID THERE WERE VARIOUS PAY REVIEWS UNDER CONSIDERATION ALL THE TIME AND THAT SOME PAY REVIEWS HAD BEEN

LONG OUTSTANDING.

HE CONFIRMED THAT PAY REVIEWS FOR DIRECTORATE OFFICERS WOULD BE COMING UP SHORTLY.

DORWARD REPEATS JENKINS BILL MESSAGE

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COMMISSIONER FOR HONG KONG COMMERCIAL AFFAIRS IN NEW YORK MR WILLIAM DORWARD HAS WRITTEN THIS WEEK TO EVERY MEMBER OF THE U.S. CONGRESS SAYING THE JENKINS BILL, IF ENACTED, WILL REDUCE MULTI-FIBRE ARRANGEMENT (MFA) EXPORTS COVERED BY THE CURRENT U.S./HONG KONG TEXTILES AGREEMENT BY 13 PER CENT AND NON-MFA TEXTILE AND APPAREL EXPORT BY AS MUCH AS 70 PER CENT.

IN THE LETTER MR DORWARD SAID SUCH ACTION AGAINST HONG KONG WAS BOTH UNJUST AND UNJUSTIFIED, POINTING OUT THAT THE TERRITORY MAINTAINED A COMPLETELY OPEN MARKET, WITHOUT IMPORT RESTRICTIONS OR CUSTOMS DUTIES, AND HAD ALWAYS RESPECTED ITS OBLIGATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT), THE MFA AND ITS BILATERAL TEXTILES AGREEMENTS WITH THE UNITED STATES,

HE ALSO WARNED THAT THE BILL, IF ENACTED, WOULD DESTROY THE MFA, POSE A SERIOUS THREAT TO THE GATT, AND INEVITABLY HINDER THE PROPOSED NEW ROUND OF MULTILATERAL TRADE NEGOTIATIONS.

+ IT WOULD SUBSTANTIALLY REDUCE EARNINGS BY DEVELOPING COUNTRIES, WHICH WOULD IN TURN REDUCE THEIR ABILITY TO PURCHASE IMPORTS FROM THE UNITED STATES, MOST IMPORTANTLY IN AREAS NECESSARY TO THEIR DEVELOPMENT. IT WOULD AFFECT THE ABILITY OF CERTAIN DEVELOPING COUNTRIES TO REPAY DEBTS, AND IT WOULD INVITE RAPID AND DAMAGING RETALIATION AGAINST U.S. EXPORTS.+

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