XN000022-1986-07-16 — Page 56

WEDNESDAY, JULY 16, 1986

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ON THE OTHER HAND, HONG KONG FULLY UNDERSTOOD WHY THE UNITED STATES WAS CONCERNED WITH ITS TRADE DEFICIT, AND WITH THE FACT THAT NOT ALL ITS TRADE PARTNERS OPENED UP THEIR MARKETS TO AMERICAN GOODS AND SERVICES, AND THAT SOME MIGHT ADOPT UNFAIR TRADE PRACTICES.

+ BUT THESE DO NOT JUSTIFY TAKING PROTECTIONIST MEASURES AGAINST IMPORTS FROM HONG KONG. INDEED WE BELIEVE THESE MEASURES AND PROPOSALS WORK AGAINST THE INTERESTS OF THE UNITED STATES IN SEEKING FREE ACCESS FOR U.S. GOODS IN OTHER PARTS OF THE WORLD, HE SAID.

+WE ARE HEARTENED TO KNOW THAT THESE VIEWS ARE SHARED HERE IN THE STATE OF WASHINGTON. WE WELCOMED THE EFFORTS OF YOUR REPRESENTATIVES IN CAMPAIGNING AGAINST PROTECTIONIST POLICIES LAST YEAR, HE ADDED.

SIR EDWARD SAID HONG KONG HAD ACQUIESCED IN THE RECENT UNITED STATES-HONG KONG TEXTILE CONSULTATIONS BECAUSE WE UNDERSTAND YOUR DIFFICULTIES WITH THE STRONG PROTECTIONIST FEELING IN THE UNITED STATES'.

HOWEVER IT WAS PARTICULARLY UNFAIR TO APPLY FURTHER RESTRICTIONS TO A TERRITORY WHICH WAS A FIRM BELIEVER AND A REAL PRACTITIONER OF FREE TRADE.

SIR EDWARD SAID HONG KONG WAS A READY PARTNER FOR THE UNITED STATES IN PROMOTING ITS EXPORTS OF GOODS AND SERVICES TO OVERSEAS MARKETS. HE WENT ON TO DESCRIBE THE ACTIVE ROLE PLAYED BY AMERICAN INVESTORS IN VARIOUS SECTORS IN HONG KONG AND SAID THERE WAS POTENTIAL FOR FURTHER GROWTH,

+ IN THE MAUFACTURING SECTOR, HONG KONG OFFERS AN IDEAL OFF-SHORE MANUFACTURING BASE FOR AMERICAN COMPANIES TO HELP KEEP THEIR PRODUCTS COMPETITIVE IN WORLD MARKETS,+ HE SAID.

+WE CAN PROVIDE EFFICIENT COMMUNICATIONS AND A GOOD ECONOMIC INFRASTRUCTURE, AN INDUSTRIOUS AND ADAPTABLE WORKFORCE, A LOW TAX REGIME AND A WELL ESTABLISHED LEGAL SYSTEM. HONG KONG THUS OFFERS AN EXCELLENT ENVIRONMENT FOR THE OVERSEAS INVESTOR.+

THIS WAS ESPECIALLY SO NOW THAT THE SINO-BRITISH JOINT DECLARATION ON HONG KONG'S FUTURE WAS IN PLACE, ENSURING A CONTINUATION OF THOSE ELEMENTS WHICH WERE ESSENTIAL TO HONG KONG'S SUCCESS.

THE JOINT LIAISON GROUP SET UP UNDER THE JOINT DECLARATION HAD PROVED A USEFUL FORUM IN WHICH THE BRITISH AND CHINESE GOVERNMENTS COULD WORK ON IMPLEMENTATION OF THE AGREEMENT.

A NOTABLE EXAMPLE WAS THE DECISION MADE IN APRIL THIS YEAR THAT HONG KONG SHOULD BECOME THE 91ST CONTRACTING PARTY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE.

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