XN000022-1985-08-23 — Page 4

FRIDAY, AUGUST 23, 1985

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BUSINESSMEN URGED TO FIGHT JENKINS BILL

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THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO, TODAY (FRIDAY) APPEALED TO LOCAL BUSINESSMEN TO LEAVE NO STONE UNTURNED IN THE FIGAT TO BEAT THE JENKINS BILL.

MR HO WAS ADDRESSING A DINNER OF THE HARVARD BUSINESS SCHOOL ASSOCIATION AT THE HONG KONG COUNTRY CLUB.

THE WORLD, MR HO SAID, WAS FACING PROBABLY THE GRAVEST DANGER TO THE MULTILATERAL TRADING SYSTEM DEVELOPED UNDER THE GATT SINCE 1948 INCREASING PROTECTIONISM.

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ATTACKING TRADE PROTECTIONISM, HE SAID THAT THIS HAD BEEN SEEN IN THE DARK DAYS OF THE GREAT DEPRESSION WHEN THE WHOLE WORLD ENDED UP MUCH THE WORSE. THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) CAME INTO FORCE IN 1948 TO ESPOUSE AN OPEN TRADING SYSTEM.

+HONG KONG'S ECONOMY IS HEAVILY DEPENDENT ON TRADE: ABOUT 90 PER CENT OF ITS MANUFACTURED PRODUCTS ARE SOLD OVERSEAS AND IN 1984 OUR IMPORTS AND EXPORTS TOGETHER REPRESENTED 170 PER CENT OF OUR GDP,+ SAID MR HO.

+ACCORDINGLY, WE ARE VULNERABLE TO THE RESURGENCE OF

PROTECTIONISM.+

MR HO POINTED TO THE PROBLEMS THAT HONG KONG HAD ENCOUNTERED IN RECENT YEARS IN TRADING WITH ITS BIGGEST OVERSEAS MARKET, THE UNITED STATES, LAST YEAR NEW REGULATIONS ON COUNTRY OF ORIGIN RULES WERE INTRODUCED AND THE U.S. HAD IGNORED FINDINGS IN FAVOUR OF THE TERRITORY BY THE TEXTILES SURVEILLANCE BODY OF THE MULTI- FIBRE ARRANGEMENT.

IN MARCH THIS YEAR, THE TEXTILE AND APPAREL TRADE ENFORCEMENT ACT HAD BEEN INTRODUCED INTO THE U.S. HOUSE OF REPRESENTATIVES AND SENATE.

+ IF THE BILL IS UNFORTUNATELY PASSED, HONG KONG'S TEXTILES AND CLOTHING EXPORTS TO THE UNITED STATES UNDER THE CURRENT

TEXTILE BILATERAL AGREEMENT WILL BE CUT-BACK BY 13 PER CENT. EXPORTS TO THE UNITED STATES WHICH AT PRESENT ARE OUTSIDE THE SCOPE OF THE MFA, AND NOT SUBJECT TO RESTRAINT, SUCH AS LINEN, RAMIE AND SILK GARMENTS, WILL BE CUT BACK EVEN MORE SAVAGELY - BY OVER 70 PER CENT.

+ IF HONG KONG IS SUDDENLY FACED WITH CUTBACKS IN EXPORTS OF SUCH MAGNITUDE, ITS ECONOMY WILL BE BOUND TO SUFFER GRIEVOUSLY, + HE SAID.

THE GOVERNMENT, HE SAID, WAS FIGHTING THE BILL.