XN000022-1987-01-27 — Page 3

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TUESDAY, JANUARY 27, 1987

TRADE CHIEF URGES JAPAN TO REDRESS IMBALANCE

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THE TWO-WAY TRADE GAP BETWEEN HONG KONG AND JAPAN REMAINS OVERWHELMINGLY IN THE LATTER'S FAVOUR DESPITE AN ENCOURAGING GROWTH IN THE TERRITORY'S EXPORTS TO JAPAN LAST YEAR, THE SECRETARY FOR TRADE AND INDUSTRY, MR ERIC HO TOLD JAPANESE OFFICIALS IN TOKYO TODAY (TUESDAY).

MR HO HAS BEEN HAVING TALKS WITH THE MINISTER FOR FOREIGN AFFAIRS, MR TADASHI KURANARI, THE CHAIRMAN OF THE SPECIAL COMMITTEE FOR INTERNATIONAL ECONOMIC MEASURES OF THE LIBERAL DEMOCRATIC PARTY, MR MASUMI ESAKI, AND EXPERTS FROM THE MINISTRY OF FOREIGN AFFAIRS AND THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY.

WHILE EXPRESSING SATISFACTION WITH THE ENCOURAGING GROWTH IN THE TERRITORY'S EXPORTS TO JAPAN IN 1986, HE POINTED OUT THAT IT WAS ON A VERY SMALL BASE AND THAT THE OVERALL TRADE GAP REMAINED IN FAVOUR OF JAPAN.

FURTHER EFFORTS WERE NEEDED, HE SUGGESTED, TO REDRESS THIS BALANCE - NOT THROUGH ANY REDUCTION OF JAPAN'S EXPORTS TO HONG KONG, BUT BY ENCOURAGING JAPANESE FIRMS TO FOLLOW VALUE FOR MONEY PRINCIPLES BY IMPORTING MORE FROM HONG KONG.

HE ALSO WELCOME MORE JAPANESE INVESTMENT IN MANUFACTURING INDUSTRY AS A MEANS OF DIVERSIFYING HONG KONG INDUSTRY AND OF INCREASING ITS IMPORTS BACK TO JAPAN.

ACCOMPANIED BY THE DIRECTOR OF TRADE (DESIGNATE), MR MICHAEL SZE, MR HO IS VISITING TOKYO TO DISCUSS MATTERS OF MUTUAL INTEREST WITH SENIOR JAPANESE REPRESENTATIVES, WITH PARTICULAR EMPHASIS ON THE NEED FOR JAPAN TO INCREASE MARKET ACCESS FOR HER TRADING PARTNERS, THE PRESSURES FOR PROTECTIONISM IN THE UNITED STATES, AND OTHER MULTI-LATERAL ISSUES SUCH AS THE URUGUAY ROUND OF TRADE NEGOTIATIONS IN GATT.

COMMENTING ON THE MEETINGS, MR HO SAID: +1 EMPHASISED THAT AS ONE OF JAPAN'S MAJOR TRADING PARTNERS WE LOOKED ON JAPAN AS A LARGELY UNTAPPED MARKET FOR A RANGE OF QUALITY GOODS HONG KONG IS MAKING AND EXPORTING TO OTHER SOPHISTICATED MARKETS. OUR SUCCESS HERE WOULD HAVE AN EFFECT ON HER TRADE SURPLUSES AND ON INTERNATIONAL PERCEPTIONS OF THE OPENNESS OF THE JAPANESE MARKET IN GOODS AND SERVICES.+

HONG KONG IS JAPAN'S SIXTH BIGGEST EXPORT MARKET AND, AFTER THE UNITED STATES AND WEST GERMANY, JAPAN'S BIGGEST TRADE SURPLUS IS WITH HONG KONG.

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