XN000022-1989-11-15 — Page 29

WEDNESDAY, NOVEMBER 15, 1989

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"AS MUCH AS 78 PER CENT OF HONG KONG'S TRADE IN GOODS IS WITH MEMBERS OF PECC AND THE MAIN SOURCES AND PRINCIPAL RECIPIENTS OF HONG KONG'S INWARD AND OUTWARD INVESTMENT FLOWS ARE REPRESENTED IN MEETING.' HE ADDED.

NEGOTIATIONS, THE NEGOTIATIONS

ON THE URUGUAY ROUND KONG'S HIGHEST PRIORITY IN RELATED AREAS OF SAFEGUARDS.

THIS

MR CARTLAND SAID HONG WAS TEXTILES AND THE

HE SAID HONG KONG FIRMLY BELIEVED THAT THE MULTI-FIBRE ARRANGEMENT (MFA) SHOULD BE PHASED OUT AND THE TEXTILES AND GARMENTS SECTOR BROUGHT WITHIN THE SCOPE OF STRENGTHENED GATT DISCIPLINES.

HE SAID IT WOULD BE NECESSARY FOR ALL CONCERNED TO BE ON GUARD AGAINST THE REPLACEMENT OF THE MFA BY NEW AND MORE INSIDIOUS FORMS OF PROTECTION SUCH AS THE EXTENSIVE AND INDISCRIMINATE USE OF ANTI-DUMPING.

"IT IS ALSO A PREREQUISITE THAT THERE BE A CLEAR SAFEGUARDS AGREEMENT PROVIDING FOR THE APPLICATION OF GATT-CONSISTENT MEASURES ON A STRICTLY NON-DISCRIMINATORY AND MOST FAVOURED-NATION BASIS, HE SAID.

[

COMMENTING ON SOME OF THE POINTS RAISED EARLIER AT THE MEETING, MR CARTLAND SAID THE LINKING OF THE HONG KONG DOLLAR ΤΟ THE U.S. DOLLAR WAS NOT DONE FOR TRADE POLICY REASONS.

"IT WAS DONE AT A TIME OF LOK CONFIDENCE IN HONG KONG IN 1983 TO ARREST A RAPID SLIDE IN THE VALUE OP THE CURRENCY WHICH HAD PREVIOUSLY BEEN FREE FLOATING.

THE ECONOMY

"THE PEG HAS BROUGHT STABILITY TO EXCHANGE RATES. HAS ADJUSTED TO THE PEG AND SPECULATIVE DEPOSITS HOPING FOR IT TO CHANGE HAVE EVAPORATED.

"WE HAVE NO INTENTION OF CHANGING IT. HE SAID.

IN RESPONSE TO THE ECONOMIC FORECAST CONTAINED PACIFIC ECONOMIC OUTLOOK, MR CARTLAND SAID THE FORECAST ECONOMIC SITUATION IN HONG KONG FAILED TO TAKE ACCOUNT OF RECOVERY THAT HAD TAKEN PLACE IN RECENT MONTHS.

IN PECC'S ABOUT THE THE STEADY

HE SAID THE PROPERTY MARKET IN HONG KONG HAD ADJUSTED AT REALISTIC LEVELS. HAVING LOST SOME OF THE EXCESSIVE SPECULATIVE HEAT THAT WAS EVIDENT EARLY IN THE YEAR.

"BANKING BUSINESS IN HONG KONG IS BEING CARRIED OUT NORMALLY. EXPORTS CONTINUED TO SHOW POSITIVE GROWTH IN THE THIRD QUARTER.

"THE FINANCIAL SYSTEM. SINCE THE OCTOBER '87 CRASH, HAS EXCHANGE RATE, THANKS TO THE U.S.

"THERE HAS BEEN LITTLE

TRAFFIC ACROSS THE BORDER.

STRENGTHENED BY REFORMS INTRODUCED SHOWN NO SIGNS OF REAL STRAIN. THE

DOLLAR LINK, HAS REMAINED STABLE.

INTERRUPTION IN THE FLOW OF GOODS

"UNEMPLOYMENT REMAINS AT 1 4 PER CENT IN THE THIRD QUARTER WHICH IS VIRTUALLY FULL EMPLOYMENT.

H

HE SAID.

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