XN000022-1987-10-29 — Page 5

THURSDAY, OCTOBER 29, 1987

FREE TRADE A CORNERSTONE OF SUCCESS

PROTECTIONIST LEGISLATION WILL ONLY SERVE TO AFFECT AND ADVERSELY THE CLIMATE OF WORLD TRADE AND SLOW DOWN GROWTH IN THE PACIFIC RIM, THE DIRECTOR OF HONG KONG ECONOMIC FOR THE WESTERN UNITED STATES, MR BILLY LAM, MAJOR TWO-DAY INTERNATIONAL CONFERENCE IN LOS MONTH.

THE CONFERENCE, HOSTED BY THE CALIFORNIA DEUKMEJIAN, FOCUSSED ON THE PACIFIC RIM.

SERIOUSLY

ECONOMIC AFFAIRS TOLD DELEGATES AT A ANGELES EARLIER THIS

GOVERNOR, MR GEORGE

ΤΟ

ECHOING MR DEUKMEJIAN'S CALL FOR VIGOROUS OPPOSITION PROTECTIONISM, MR LAM ENDORSED THE CALIFORNIA GOVERNOR'S ACTION IN INFORMING CONGRESSIONAL LEADERS OF THE DANGERS OF PROTECTIONISM.

ADDRESSING THE MULTILATERAL GATHERING OF BUSINESS LEADERS, GOVERNMENT OFFICIALS AND EDUCATORS FROM 14 PACIFIC RIM ECONOMIES, MR LAM, WHO LED THE HONG KONG DELEGATION, VOICED PARTICULAR CONCERN OVER THE TEXTILE AND APPAREL TRADE ACT RECENTLY PASSED BY THE CONGRESS AND THE DANGER THAT THIS WOULD LEAD ΤΟ THE ENACTMENT OF PROTECTIONIST LEGISLATION.

"AS A TRUE BELIEVER AND PRACTITIONER OF FREE AND FAIR TRADE, WE CALL FOR STRONG RESISTANCE TO PROTECTIONISM" MR LAM SAID. "AT THE SAME TIME WE ALSO STRONGLY URGE THE LIBERALISATION OF ALL EXISTING TARIFF AND NON-TARIFF BARRIERS."

RECOGNISING THE SENSITIVITY IN THE UNITED STATES OVER TRADE SURPLUSES, MR LAM POINTED OUT THAT HONG KONG'S IMPORTS ARE AS LARGE AS ITS EXPORTS.

"INDBED, WITH THE EXCEPTION OF

1985, WE HAVE EXPERIENCED A DEFICIT IN VISIBLE TRADE SINCE 1947. THIS DEFICIT HAS BEEN BALANCED THROUGH OUR RE-EARNINGS IN SERVICES, TOURISM AND OVERSEAS INVESTment, HE SAID.

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"OUR FREE TRADE POLICY HAS BECOME THE CORNERSTONE OF OUR ECONOMIC SUCCESS AND AUGURS WELL FOR THE PRINCIPLES OF OPEN MARKETS AND FREE COMPETITION," HE EMPHASISED.

TWO-THIRDS OF CALIFORNIA'S INTERNATIONAL TRADE IS WITH THE PACIFIC REGION WHILE HONG KONG ITSELF IS CALIFORNIA'S SIXTH LARGEST TRADING PARTNER.

CALIFORNIA, BEING THE LARGEST STATE IN THE UNITED STATES, HAS SENT 45 OUT OF A TOTAL OF 435 CONGRESSMEN TO CAPITOL HILL AND MOST OF THE CALIFORNIA DELEGATION HAS RECENTLY VOTED AGAINST THE TEXTILE BILL.

MR DEUKMEJIAN