XN000022-1986-05-26 — Page 5

MONDAY, MAY 26, 1986

+WE FOR OUR PART MUST INCREASE OUR EFFORTS TO PROMOTE EXPORTS TO JAPAN AND SEEK A BETTER UNDERSTANDING OF THE REQUIREMENTS AND PREFERENCES OF THE JAPANESE MARKET.

+AT THE SAME TIME THERE ARE POSITIVE MEASURES WHICH JAPAN ON ITS PART COULD TAKE TO ALLEVIATE THIS SEVERE IMBALANCE IN TRADE, HE SAID.

HE SAID ONE WAY WAS FOR JAPANESE MANUFACTURERS TO SPEED UP THE ESTABLISHMENT OF OFF-SHORE MANUFACTURING PROCESSES IN HONG KONG.

+THE SALE OF THESE MANUFACTURED OR SEMI-MANUFACTURED PRODUCTS FROM THESE BASES BACK TO JAPAN FOR CONSUMPTION SHOULD HELP REDUCE THE MARKETING PROBLEMS WHICH HONG KONG PRODUCTS FACE IN JAPAN AND HELP REDUCE THE TRADE IMBALANCE, + HE SAID.

THE PROCESS COULD ALSO AT THE SAME TIME PROVE TO BE VERY PROFITABLE FOR THE JAPANESE INVESTORS, FOR THE JAPANESE CONSUMER AND GOOD FOR JAPAN, HE ADDED.

IN THE MORE IMMEDIATE TERM, SIR EDWARD SAID JAPANESE TARIFF RATES FOR ITEMS OF INTEREST TO HONG KONG COULD BE FURTHER REDUCED.

ON TOYS, HE NOTED THAT SATISFACTORY PROGRESS HAD BEEN MADE SINCE HIS LAST VISIT IN ACQUIRING THE +ST+ (SAFETY TOY) MARK FOR HONG KONG TOY EXPORTS TO JAPAN.

HE SAID THE JAPAN TOY ASSOCIATION HAD FORMALLY RECOGNISED CERTAIN STANDARDS AND CALIBRATION CENTRES IN HONG KONG AS BEING COMPETENT TO PROVIDE TESTING FACILITIES IN HONG KONG FOR OBTAINING THE ST+ MARK.

SIR EDWARD SAID HONG KONG HAD A WIDE RANGE OF PRODUCTS WHICH COULD BE OF INTEREST TO THE JAPANESE CONSUMER, AT A COMPETITIVE PRICE, AND OF A QUALITY WHICH COULD MEET JAPANESE REQUIREMENTS.

IT WAS HOPED THAT THIS WEEK'S MEETINGS WOULD IDENTIFY FURTHER MEANS BY WHICH ANY OBSTACLES TO THE ENTRY OF SUCH PRODUCTS COULD BE OVERCOME, WHETHER THESE OBSTACLES BE REAL OR PSYCHOLOGICAL, HE SAID.

+OUR PRODUCTS ARE GOOD, OUR PRICES INCREASINGLY COMPETITIVE AND SUCH IMPORTS WOULD REDUCE JAPAN'S OVERALL TRADE SURPLUS WHICH IS OF SUCH CONCERN TO THE REST OF THE. WORLD, SIR EDWARD ADDED.

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