XN000022-1989-05-02 — Page 5

TUESDAY, MAY 2, 1989

INTERNATIONAL LAW FIRM APPOINTED TO UNDERTAKE INJURY STUDY

IN RESPONSE TO THE EUROPEAN COMMISSION'S ANTI-DUMPING PROCEEDING ON DENIM CLOTH ORIGINATED IN HONG KONG. THE TEXTILE COUNCIL OF HONG KONG, TOGETHER WITH THE FEDERATION OF HONG KONG COTTON WEAVERS AND THE HONG KONG WEAVING MILLS ASSOCIATION, HAS COMMISSIONED A COMMON INJURY STUDY ON THE EUROPEAN ECONOMIC COMMUNITY

DENIM INDUSTRY.

CLIFFORD CHANCE, AN INTERNATIONAL LAW FIRM BASED IN EUROPE,

HAS BEEN APPOINTED TO UNDERTAKE THE STUDY.

THE ACTING ASSISTANT DIRECTOR OF TRADE, MR FRED LEUNG, TODAY (TUESDAY) SAID THAT THE DEPARTMENT WELCOMED THE JOINT EFFORT MADE BY THE THREE TRADE BODIES.

"WE ARE PLEASED TO SEE THAT THEY HAVE TAKEN THIS INITIATIVE AGAINST THE ANTI-DUMPING ALLEGATION. THIS WILL UNDOUBTEDLY HELP THE LOCAL DENIM MANUFACTURING INDUSTRY TO DEFEND ITSELF IN THE PROCEEDING AND IN THE LONG RUN FORESTALL ANTI-DUMPING ACTION ON OTHER TEXTILE PRODUCTS. HE SAID.

*

OF

MR LEUNG SAID A STEERING COMMITTEE COMPRISED REPRESENTATIVES FROM THE THREE TEXTILE BODIES, THE HONG KONG TRADE DEVELOPMENT COUNCIL AND THE TRADE DEPARTMENT WOULD BE SET UP ΤΟ MONITOR THE STUDY.

THE INJURY STUDY WILL BE SUBMITTED TO THE EUROPEAN COMMISSION UNDER THE NAME OF THE TEXTILE COUNCIL OF HONG KONG,

ACCORDING TO ITS CHAIRMAN MR CHAN SHUI-KAU, THE INJURY STUDY WAS MADE ON BEHALF OF ALL DENIM CLOTH MANUFACTURERS IN HONG KONG TO CONTEST THE ALLEGATION THAT HONG KONG'S EXPORTS HAD CAUSED INJURY то THE EEC DENIM INDUSTRY.

"THE ALLEGATION IS UNFAIR AS HONG KONG'S EXPORTS ARE ALREADY SUBJECT TO QUOTA RESTRAINT.' HE ADDED.

"

UNDER THE EEC ANTI-DUMPING LEGISLATION, IF HONG KONG MANUFACTURERS CAN SUCCESSFULLY REBUT THE ALLEGATION OF INJURY, THE PROCEEDING WOULD HAVE TO BE TERMINATED BECAUSE NO ANTI-DUMPING DUTY CAN BE APPLIED IF NO INJURY IS FOUND OR IF THERE IS NO CASUAL LINK BETWEEN ANY INJURY AND THE EXPORTS,

THE TEXTILE COUNCIL OF HONG KONG LIMITED WAS INCORPORATED ON JULY 22 LAST YEAR TO PROMOTE AND FOSTER THE INTEREST OF THE TERRITORY'S TEXTILE INDUSTRY AS A WHOLE, INCLUDING THE SPINNING, WEAVING. KNITTING, DYEING, AND GARMENT MANUFACTURING INDUSTRIES.

ITS 10 FOUNDING MEMBERS WERE THE MAJOR TEXTILES AND CLOTHING MANUFACTURING ASSOCIATIONS IN HONG KONG, INCLUDING THE FEDERATION OF HONG KONG COTTON WEAVERS AND THE HONG KONG WEAVING MILLS ASSOCIATION.

15