XN000022-1987-02-05 — Page 4

THURSDAY, FEBRUARY 5, 1987

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U.S. CAN PLAY VITAL ROLE

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TRADE CHIEF

HONG KONG'S CONTINUED VIABILITY DEPENDED TO A LARGE EXTENT ON THE UNDERSTANDING AND CO-OPERATION OF THE INTERNATIONAL COMMUNITY, AND THE UNITED STATES COULD PLAY A VITAL ROLE IN THIS, THE SECRETARY' FOR TRADE AND INDUSTRY, MR E.P. HO, TOLD A HIGH-LEVEL AUDIENCE IN WASHINGTON TODAY (THURSDAY, HK TIME).

MR HO WAS SPEAKING AT A LUNCHEON MEETING OF THE HERITAGE FOUNDATION, ONE OF THE UNITED STATES' LEADING PUBLIC POLICY RESEARCH INSTITUTES, WITH CONSIDERABLE INFLUENCE ON THE THINKING OF MANY OF WASHINGTON'S TOP DECISION-MAKERS, BOTH IN THE ADMINISTRATION AND IN CONGRESS.

MR HO POINTED OUT THE DEEP INVOLVEMENT OF THE UNITED STATES IN THE HONG KONG ECONOMY, WITH CONSIDERABLE INVESTMENT IN MANUFACTURING, WIDE REPRESENTATION IN THE SERVICES SECTOR AND MANY CORPORATE HEADQUARTERS FOR ASIA, AS WELL AS SUPPORT FOR HONG KONG FROM THE U.S. GOVERNMENT.

+FOR ALL OF THESE, WE IN HONG KONG ARE GRATEFUL. WE LOOK FORWARD TO YOUR CONTINUAL SUPPORT, GOODWILL AND UNDERSTANDING, + MR HO SAID. + HONG KONG'S CONTINUED VIABILITY DEPENDS TO A LARGE EXTENT ON THE UNDERSTANDING AND CO-OPERATION OF THE INTERNATIONAL COMMUNITY, AND THE UNITED STATES CAN PLAY A VITAL ROLE IN THIS.+

HOWEVER, MR HO EMPHASISED THAT BECAUSE OF HONG KONG'S HEAVY DEPENDENCE ON TRADE FOR ITS ECONOMIC SUCCESS, IT SUFFERED A CORRESPONDING VULNERABILITY TO SWINGS IN THE FORTUNES OF ITS TRADING PARTNERS.

+ECONOMIC DOWNTURNS IN OUR MAJOR MARKETS INEVITABLY HAVE A DIRECT EFFECT ON OUR ECONOMY. BUT PROTECTIONIST MEASURES ADOPTED BY OUR TRADING PARTNERS COULD POSE AN EVEN MORE SERIOUS THREAT,+ HE SAID.

+ IT IS AGAINST THIS BACKGROUND THAT WE IN HONG KONG ARE EXTREMELY CONCERNED ABOUT PROTECTIONIST PRESSURES IN THE UNITED STATES, WHICH IS BY FAR OUR LARGEST MARKET, ACCOUNTING FOR OVER 40 PER CENT OF OUR DOMESTIC EXPORTS.+

MR HO SAID THAT HONG KONG WAS ONE OF THE STRONGEST SUPPORTERS OF AND THE TRUEST PRACTITIONER OF FREE TRADE, EMPHASISING THAT THE TERRITORY HAD NO BARRIERS AGAINST IMPORTS OR SERVICES.

+ IF IT IS THE AIM OF THE UNITED STATES TO PERSUADE OR INDUCE ITS TRADING PARTNERS TO DISMANTLE OR LOWER THEIR BARRIERS TO IMPORTS, THEN THE UNITED STATES MUST SURELY GIVE FULL RECOGNITION TO HONG KONG'S FREE TRADE PRACTICES TO PROVIDE AN INCENTIVE FOR OTHERS TO FOLLOW,+ HE SAID.

/MR HO