XN000022-1986-03-03 — Page 3

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MONDAY, MARCH 3, 1986

ON HONG KONG'S BILATERAL TEXTILES AGREEMENTS WITH VARIOUS COUNTRIES, MR WEBB-JOHNSON SAID THE ONE WITH THE EEC WOULD EXPIRE AT THE END OF THE YEAR AND HONG KONG WOULD BE NEGOTIATING WITH THE EEC SHORTLY IN THIS REGARD.

+ ALSO AT THE REQUEST OF THE UNITED STATES GOVERNMENT, WE SHALL SHORTLY BE MEETING WITH THEIR REPRESENTATIVES TO ENTER INTO DISCUSSIONS CONCERNING HONG KONG'S TEXTILE EXPORTS TO THE UNITED STATES.+

INTERNALLY, MR WEBB-JOHNSON SAID 1986 SAW THE IMPLEMENTATION OF THE REVISED QUOTA TRANSFER RULES WHICH WERE DESIGNED TO HELP MOVE QUOTAS FROM SPECULATORS TO GENUINE USERS.

HE NOTED THAT CONCERN HAD BEEN EXPRESSED IN SOME QUARTERS THAT SINCE THEIR IMPLEMENTATION IN JANUARY, THE NEW RULES WERE MAKING QUOTAS SCARCE AND WERE HURTING SMALL COMPANIES WHICH WERE FINDING IT DIFFICULT TO OBTAIN QUOTAS THROUGH TRANSFERS.

MR WEBB-JOHNSON SAID IT WAS STILL FAR TOO EARLY TO COME

TO ANY CONCLUSION ON THE NEW RULES.

+ THE REVISED RULES HAD BEEN DRAWN UP IN CONSULTATION WITH THE TRADE AFTER MONTHS OF CAREFUL CONSIDERATION AND DETAIL DISCUSSIONS, AND IT WOULD NOT BE FAIR TO ALL CONCERNED IF WE DO NOT ALLOW ADEQUATE TIME FOR THE NEW SYSTEM TO PROVE ITSELF. IN THE MEANTIME. THE GOVERNMENT IS CLOSELY MONITORING THE SITUATION,+ HE ADDED.

1985 EXPORTS STATISTICS BY INDUSTRIAL ORIGIN RELEASED

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THE SIX MOST IMPORTANT INDUSTRY GROUPS IN TERMS OF THE VALUE OF 1985 DOMESTIC EXPORTS WERE WEARING APPAREL, ELECTRICAL AND ELECTRONIC PRODUCTS, TEXTILES, PROFESSIONAL AND OPTICAL EQUIPMENT, PLASTIC PRODUCTS, AND BASIC METALS AND FABRICATED VETAL PRODUCTS.

TOGETHER THEY ACCOUNTED FOR 84 PER CENT OF THE TOTAL VALUE OF DOMESTIC MERCHANDISE EXPORTS.

THE INDUSTRIES WITH THE LARGEST INCREASES IN ABSOLUTE VALUE OVER 1984 WERE NON-ELECTRICAL MACHINERY (+$1 026 MILLION), PROFESSIONAL AND OPTICAL EQUIPMENT (+$436 MILLION), TOBACCO (+$384 MILLION), PAPER AND PAPER PRODUCTS, PRINTING AND PUBLISHING (+$212 MILLION), FOOTWEAR (+$147 MILLION), AND ELECTRICITY (+$131 MILLION).

/IN RELATIVE