XN000022-1989-10-26 — Page 6

1

5

THURSDAY, OCTOBER 26, 1989

MR LEUNG SAID AS THE BEC

A'COUNTING FOR 20 PER CENT OF

WAS THE ALL. WORLD

WORLD'S LARGEST EXPORTER, TRADE, HE HAD REASON TO ESSENTIALLY AN OPEN MARKET

BELIEVE THAT THE COMMUNITY WOULD REMAIN INSTEAD OF DEVELOPING INTO A "FORTRESS EUROPE",

MR

COMMISSION

QUOTING A REPORT RELEASED LAST YEAR BY THE EUROPEAN

OF THE BENEFITS

INTERNAL MARKET, ON THE ECONOMIC

LEUNG SAID

THAT THE

OF

THE INTERNAL ECONOMISTS BELIEVED

FRONTIERS, OF TECHNICAL TRADE OPENING OF MARKETS TO COMPETITION, THE ABOLITION

FINANCIAL MARKETS

GREATLY WOULD BARRIERS, AND THE ENHANCE THE COMMUNITY'S ECONOMIC PERFORMANCE.

REMOVAL.

OF INTEGRATION

A

MIGHT BE (EUROPEAN CURRENCY

ECONOMISTS OF THE COMMISSION PREDICTED THAT THERE ONE-OFF GAIN OF BETWEEN 170 AND 250 ECU BILLION UNIT) ARISING FROM ECONOMIES OF SCALE, COST BENEFITS AND COMPETITION.

EUROPEAN MARKET MR LEUNG SAID THE COMPLETION OF AN INTEGRATED

TRADING BLOC IN THE OF 320 MILLION PEOPLE WOULD CREATE THE LARGEST WORLD, RIVALLING THE ECONOMIC STRENGTH OF THE UNITED STATES AND JAPAN.

FAR-REACHING HE SAID THIS DEVELOPMENT MIGHT HAVE FOR HONG KONG'S MERCHANDISE TRADE WITH THE COMMUNITY.

IMPLICATIONS

TRADE DEMAND A

WILL ARISE FROM FREE SHOULD LEAD EEC CONSUMERS ΤΟ

"THE INCREASED COMPETITION THAT AMONG MEMBER STATES (MSS) HIGHER QUALITY/PRICE RATIO,

"EEC MANUFACTURERS, THEREFORE, WOULD BE UNDER PRESSURE TO

SUPPLIES, WHETHER COMPONENT PARTS OR IVEN MORE COMPETITIVE FRODUCTS.

"SOME COULD WELL BE MORE DISPOSED TO LOOK BEYOND THEIR TO THE REST OF THE WORLD, PARTICULARLY THE ASIA PACIFIC REGION, HONG KONG OCCUPIES A PIVOTAL POSITION," MR LEUNG SAID.

THE

MORE

SEEK FINAL

BORDERS WHERE

OF

*THE WHICH

HE ADDED THAT

GROWTH BUOYANT ECONOMIC COMMUNITY MIGHT ENABLE IT TO ADOPT A MORE LIBERAL TRADE POLICY, SHOULD BENEFIT HONG KONG'S EXPORT-ORIENTED ECONOMY.

THE ELIMINATION OTHER ADVANTAGES TO BE BROUGHT ABOUT INCLUDED

PAPERWORK, THE REMOVAL OF OF CUMBERSOME ADMINISTRATIVE AND CUSTOMS

REGIONAL LIMITS FOR QUOTAS ON TEXTILES AND FRONTIER CONTROL AND

RELAT ING CLOTHING AS WELL AS THE HARMONISATION OF TECHNICAL STANDARDS TO QUALITY, HEALTH, SAFETY AND ENVIRONMENTAL ASPECTS OF GOODS.

MR LEUNG BELIEVED ALL THESE

NEW ARRANGEMENTS

MARKET OPPORTUNITIES FOR EXPORTS TO THE COMMUNITY,

TALKING ABOUT THE DISADVANTAGES

SHOULD IMPROVE

ARISE, MR LEUNG MIGHT LEAD TO

WITHIN

THE

THE

THAT MIGHT COMPETITION

KAID HE WORRIED THAT INCREASED INTENSIFICATION OF PROTECTIONIST PRESSURE FROM INDUSTRIES EEC. INCLUDING THE DEMAND FOR PRODUCTION SUBSIDIES.

/ANOTHER WORRY