XN000022-1987-04-28 — Page 4

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TUESDAY, APRIL 28, 1987

TURNING TO WORLD TRADE, MR NENDICK NOTED THAT THE EVER-PRESENT THREAT OF PROTECTIONISM CONTINUED TO REPRESENT A PERMANENT CLOUD ON THE ECONOMIC HORIZON,

+WHILST PROTECTIONISM IS AN EMOTIVE SUBJECT AND THE IMPOSITION OF SELECTIVE PROTECTIONIST MEASURES ARE OFTEN SEEN BY SOME AS AN EASY SOLUTION TO TRADE IMBALANCES, IT IS INEVITABLE THAT THE LONG TERM EFFECT WILL BE A SLOWDOWN IN WORLD TRADE-IN THE END NO ONE WILL BENEFIT.

+1 WOULD THEREFORE URGE THOSE COUNTRIES CONTEMPLATING THE INTRODUCTION OF PROTECTIONIST POLICIES, IN WHATEVER GUISE, TO BEAR IN MIND THAT PROTECTIONISM IS INFECTIOUS AND THAT BARRIERS ARE MORE EASILY ERECTED THAN DISMANTLED.

+THERE WILL NEARLY ALWAYS BE OTHER SOLUTIONS ALTHOUGH THEY MAY APPEAR LESS PALATABLE IN THE SHORT TERM,+ HE SAID.

AT THE MEETING, MR NENDICK ANNOUNCED THAT HONG KONG HAD DECIDED TO MAKE A CONTRIBUTION OF U.S.$1 MILLION TOWARDS THE FOURTH REPLENISHMENT OF THE ASIAN DEVELOPMENT FUND.

+THIS DEMONSTRATES OUR DESIRE TO CONTINUE TO CONTRIBUTE TO THE DEVELOPMENT OF THE REGION AND PLAY OUR FULL PART AS A MEMBER OF THE BANK,+ HE SAID.

INVITED TO VISIT CHINA ***

THE FINANCIAL SECRETARY, MR PIERS JACOBS, AND THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, WILL VISIT CHINA AT THE INVITATION OF THE PRESIDENT OF THE BANK OF CHINA, MR WANG DEYAN, FROM MAY 2 TO 7.

THEY WILL BE ACCOMPANIED BY THE POLITICAL ADVISER, MR RICHARD CLIFT, AND MRS LILY KING, THE SENIOR CHINESE LANGUAGE OFFICER.

MR JACOBS AND MR NENDICK WILL EXCHANGE VIEWS ON FINANCIAL ECONOMIC AND MONETARY MATTERS WITH BANKING OFFICIALS AND OFFICIAL S OF OTHER INSTITUTIONS AND DEPARTMENTS OF THE CHINESE GOVERNMENT. MR JACOBS WILL ALSO RENEW THE CONTACTS HE ESTABLISHED WHEN HE VISITED CHINA IN NOVEMBER 1985 AS SECRETARY FOR ECONOMIC SERVICES.

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