XN000022-1987-05-22 — Page 7

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FRIDAY, MAY 22, 1987

MR DORWARD SAID THAT ANYONE IN THE U.S. WHO THOUGHT HE HAD PRODUCTS OR SERVICES WHICH WERE WORLD COMPETITIVE HAD A WIDE- OPEN OPPORTUNITY TO TEST OUT HIS BELIEF IN HONG KONG.

HE SAID

BUT NO ONE WAS GOING TO HAND IT TO THEM ON A PLATTER +HONG KONG IS A TOUGH, COMPETITIVE ENVIRONMENT, WHERE SUCCESS IN SELLING DEPENDS MAINLY ON THE THREE BASIC CRITERIA OF PRICE, QUALITY AND AVAILABILITY.+

AS AN EXAMPLE, MR DORWARD POINTED TO THE OPPORTUNITIES FOR AMERICAN TEXTILE COMPANIES TO INCREASE THEIR SHARE OF THE HONG KONG MARKET, PARTICULARLY WITH THE ADVANTAGE BROUGHT ABOUT BY THE RISING JAPANESE YEN. HE POINTED OUT THAT JAPAN NOW PROVIDES ABOUT 17 PER CENT OF HONG KONG'S TEXTILE IMPORTS, WHICH ARE VALUED AT MORE THAN $20 BILLION A YEAR.

+THAT IS ASSUMING (THE AMERICAN TEXTILE COMPANIES) HAVE THE PRODUCTIVE CAPACITY OF COURSE- BUT IF THEIR PRODUCTION IS ALREADY TOO FULLY COMMITTED TO TRY FOR A SHARE OF SUCH A HUGE MARKET, WHY ARE THEY MAKING SUCH NOISY DEMANDS FOR STILL MORE PROTECTION AGAINST IMPORTS? THEY SURELY CANNOT HAVE IT BOTH WAYS,+ HE SAID.

TURNING TO THREATS OF AMERICAN PROTECTIONISM AGAINST FOREIGN IMPORTS, INCLUDING THOSE FROM HONG KONG, MR DORWARD SAID THAT THE TERRITORY LOOKED WITH MOUNTING CONCERN AT THE ATTEMPTS CURRENTLY BEING MADE TO RESTRICT SUCH IMPORTS EVEN FURTHER.

*THE TEXTILE AND APPAREL MANUFACTURERS IN THE U.S. AND OTHER DEVELOPED COUNTRIES HAVE NOW ENJOYED GREATER PROTECTION, TARIFF AND NON-TARIFF, FOR MORE YEARS THAN ANY OTHER SECTOR SINCE THE INDUSTRIAL REVOLUTION.

+I THINK MOST OF THOSE PRESENT WOULD AGREE THAT THE TEXTILE PROTECTIONISTS ARE STILL FIGHTING YESTERDAY'S WAR. THE FUTURE HAS TO LIE WITH THE REDUCTION OF BARRIERS, NOT THEIR INCREASE WITH EXPANSION OF TRADE, NOT REDUCTION,+ HE SAID.

MR DORWARD SAID THAT THE IDEA OF A COMMUNITY LIKE HONG KONG MAINTAINING BALANCED TRADE WITH ALL ITS MAJOR TRADING PARTNERS WAS LUDICROUS,

+IN FACT THE WHOLE IDEA OF BALANCING TRADE BY COUNTRY OR BY PRODUCT SECTOR IS A NONSENSE, BECAUSE IT DENIES THE OBVIOUS ADVANTAGE TO ALL CONCERNED OF BUYING AND SELLING IN THE BEST MARKETS. TO TRY TO FORCE BILATERAL TRADE BALANCES BY GOVERNMENT INTERVENTION WOULD ALMOST CERTAINLY RESULT IN A REDUCTION IN TRADE, TO EVERYBODY'S DISADVANTAGE, HE SAID.

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