XN000022-1989-05-19 — Page 10

FRIDAY, MAY 19, 1989

9

AT

MR LO WAS SPEAKING TO TOP BUSINESS EXUCUTIVES AND ACADEMICS A LUNCH JOINTLY ORGANISED BY THE WASHINGTON COUNCIL ON INTERNATIONAL TRADE AND THE WASHINGTON STATE CHINA RELATIONS COUNCIL.

WAS ΤΟ

UNDER THE OMNIBUS TRADE ACT. THE U.S. ADMINISTRATION REQUIRED TO DRAW UP BY MAY 30 A LIST OF PRIORITY FOREIGN COUNTRIES BE SUBJECT TO THE SUPER 301 ACTION BECAUSE OF THEIR IMPOSITION OF MAJOR BARRIERS TO U.S. EXPORTS,

MR LO SAID HONG KONG HAD AN OPEN ECONOMY WITHOUT ANY TRADE BARRIERS AND WOULD NOT THEREFORE BE SUBJECT TO ANY THREAT OF THE SUPER 301 ACTION, BUT WAS NEVERTHELESS CONCERNED ABOUT ITS IMPLEMENTATION.

HE SAID HONG KONG SHARED AMERICA'S COMMITMENT TO THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FROM WHICH BOTH STOOD TO GAIN SO

SO MUCH IN AREAS SUCH AS INTELLECTUAL PROPERTY PROTECTION AND TRADE IN SERVICES.

BUT, HE POINTED OUT, UNILATERAL ACTION UNDER SUPER 301 WOULD JEOPARDISE A SUCCESSFUL CONCLUSION TO THE ROUND BY BEING READ AS A SIGNAL THAT THE U.S.. THE BIGGEST AND MOST INFLUENTIAL PLAYER, WAS LOSING FAITH IN THE POST-WAR MULTILATERAL TRADING SYSTEM IT HAD DONE SO MUCH TO CREATE.

MR LO SAID THERE WAS ANOTHER POSSIBLE PROTECTIONIST THAT COULD ALSO JEOPARDISE THE URUGUAY ROUND OF NEGOTIATIONS.

MULTILATERAL

THREAT TRADE

THAT WAS THE POSSIBLE AMENDMENT TO THE CARIBBEAN BASIN ECONOMIC RECOVERY EXPANSION ACT OF 1989, OR CBI II, TO INCLUDE SOME FORM OF TEXTILE QUOTA TRANSFER OR OFFSET PROVISION THAT WOULD WITHDRAW QUOTAS FROM ASIAN SUPPLIERS TO OFFSET INCREASED IMPORTS THE CARIBBEAN BASIN.

FROM

ALSO

HE POINTED OUT THAT IF THE PROPOSAL WAS ADOPTED, IT WOULD VIOLATE THE MULTI-FIBRE ARRANGEMENT AND THE BILATERAL TEXTILE AGREEMENTS WHICH THE U.S. HAD CONCLUDED WITH OVERSEAS SUPPLIERS.

HE CALLED ON THE U.S. ADMINISTRATION AND CONGRESS ΤΟ TAKE A FIRM STAND AGAINST THE PROPOSAL AND ON ANY OTHER RESTRICTIVE MEASURES THAT COULD DAMAGE THE WORLD TRADING SYSTEM.

IN HIS TALK ON HONG KONG'S POSITION ON INTERNATIONAL TRADE ISSUES, MR LO ALSO SPOKE ABOUT ITS ECONOMIC DEVELOPMENT. HK-U.S. ISSUES, AND ITS ECONOMIC TIES WITH CHINA.

OTHER SUBJECTS HE TOUCHED ON WERE THE HK-U.S. DOLLAR LINK AND THE OPERATION OF FOREIGN LAW FIRMS IN HONG KONG.

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