XN000022-1985-07-25 — Page 6

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THURSDAY, JULY 25, 1985

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VALUE OF U.S. GSP TO HK STRESSED

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HONG KONG'S GOOD TRADE PRACTICES MEAN THAT THE TERRITORY SHOULD CONTINUE TO BE ENTITLED TO THE FULL BENEFITS OF A BENEFICIARY COUNTRY UNDER THE UNITED STATES GENERALISED SYSTEM OF PREFERENCES,

THIS WAS THE CONCLUSION OF THE SUBMISSION MADE BY HONG KONG TO THE UNITED STATES AUTHORITIES WHICH IS NOW REVIEWING THE OPERATION OF THE GSP SCHEME IN WASHINGTON.

+THE GSP PROGRAMME IS EXTREMELY IMPORTANT TO HONG KONG'S ECONOMIC DEVELOPMENT AND WELL-BEING. THE GOOD TRADE PRACTICES MAINTAINED BY HONG KONG REPRESENT THE FULL EXTENT OF THE DESIRED BENEFICIARY COUNTRY PRACTICES STIPULATED IN THE TRADE AND TARIFF ACT OF 1984,+ SAID THE SUBMISSION PREPARED BY THE TRADE DEPARTMENT.

+HONG KONG SHOULD THUS CONTINUE TO BE ENTITLED TO THE FULL BENEFITS OF A BENEFICIARY COUNTRY UNDER UNITED STATES GSP.+

HONG KONG IS FIRMLY COMMITTED TO AN OPEN MARKET POLICY AND THIS APPLIES TO TRADE IN GOODS AND FINANCIAL AND OTHER SERVICES AS WELL AS TO INVESTMENTS IN HONG KONG INDUSTRY. LEGISLATION ON INTELLECTUAL PROPERTY RIGHTS COMPARES FAVOURABLY WITH THAT ANYWHERE IN THE WORLD, AND IT IS RIGOROUSLY ENFORCED. THE WORK FORCE ENJOYS INTERNATIONALLY RECOGNISED WORKER'S RIGHTS.

THE SUBMISSION POINTED OUT THAT THE TERRITORY ADHERES STRICTLY TO THE DISCIPLINE OF THE WORLD'S TRADING SYSTEM - IN PARTICULAR THE GATT. ECONOMIC PLANNING, EXCEPT IN THE VERY BROADEST SENSE, IS NOT PRACTISED BY THE GOVERNMENT WHICH SEES ITS MAJOR ROLE AS TO PROVIDE A SUITABLE AND STABLE FRAMEWORK FOR COMMERCE AND INDUSTRY TO FUNCTION EFFICIENTLY AND EFFECTIVELY WITH A MINIMUM OF INTERFERENCE.

IN 1984 THE TERRITORY IMPORTED U.S. $3.1 BILLION WORTH OF GOODS FROM THE UNITED STATES - ALL FREE OF IMPORT DUTY. IN CONTRAST ONLY U.S. $1.3 BILLION WORTH OF IMPORTS IN THE OTHER DIRECTION, OR 16.1 PER CENT OF THE TOTAL, ENTERED THE U.S. FROM HONG KONG FREE OF DUTY UNDER GSP.

POINTING OUT THAT THERE WERE NOW SOME 14 000 AMERICAN CITIZENS RESIDENT IN HONG KONG, THE SUBMISSION SAID THAT THE TERRITORY PROVIDES A BASE FOR OVER 800 AMERICAN FIRMS. THE U.S. IS THE LARGEST SOURCE OF OVERSEAS INVESTMENT IN THE MANUFACTURING SECTOR, ACCOUNTING FOR 54 PER CENT OF THE TOTAL.

+HONG KONG IS FAITHFUL TO LIBERAL ECONOMIC POLICIES OF FREE ENTERPRISE AND FREE TRADE,+ SAID THE SUBMISSION. THERE ARE NO IMPORT TARIFFS OR QUOTA RESTRICTIONS, HONG KONG HAS NO CONTROLS CN IMPORTS, EXPORTS AND RE-EXPORTS OTHER THAN THOSE ARISING FROM INTERNATIONAL OBLIGATIONS AND THOSE REQUIRED FOR HEALTH, SAFETY

SECURITY REASONS.

THE TERRITORY'S