XN000022-1991-06-26 — Page 24

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WEDNESDAY, JUNE 26, 1991

HE SAID IF CHINA'S MEN STATUS WAS NOT RENEWED, HONG KONG FIRMS WITH MANUFACTURING OPERATIONS IN CHINA WOULD BE DEALT A SEVERE BLOW.

"OUR TRADERS, SHIPPING AND TRANSPORTATION COMPANIES, AND FINANCIAL INSTITUTIONS COMMITTED ΤΟ INVESTMENTS AND CONTRACTS IN CHINA WOULD ALSO BE AFFECTED.

"OUR ESTIMATE IS THAT RE-EXPORTS THROUGH HONG KONG OF CHINESE PRODUCTS TO THE U.S. WOULD DROP BY 33 PER CENT TO 44 PER CENT.

"WE COULD LOSE SEVEN TO 10 BILLION HONG KONG DOLLARS IN INCOME, 32,000 TO 43,000 JOBS AND 1.3 TO 1.8 PERCENTAGE POINTS OF GROWTH IN GROSS DOMESTIC PRODUCT, HE SAID.

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MR CHAU SAID LAST MONTH TWO DELEGATIONS REPRESENTING THE HONG KONG GENERAL CHAMBER OF COMMERCE AND THE AMERICAN CHAMBER OF COMMERCE WENT TO WASHINGTON TO ENLIST CONGRESSIONAL SUPPORT FOR UNCONDITIONAL RENEWAL OF CHINA'S MFN STATUS.

SOME MEMBERS OF THE HONG KONG/U.S. ECONOMIC CO-OPERATION COMMITTEE, INCLUDING BARONESS DUNN, MR ALLEN LEE, MR JOHN CHAN AND HIMSELF, ALSO CALLED ON LEADERS OF THE CONGRESS AND THE U.S. ADMINISTRATION IN WASHINGTON EARLIER THIS MONTH ΤΟ ENLIST THEIR SUPPORT, MR CHAU SAID.

HE SAID HE BELIEVED THESE MISSIONS WERE SUCCESSFUL IN ENSURING THAT HONG KONG'S CASE WAS HEARD IN WASHINGTON, ESPECIALLY ON CAPITOL HILL.

HOWEVER, HE SAID THE THREAT REMAINED A REAL ONE AND THE GOVERNMENT WAS TAKING IT VERY SERIOUSLY.

"IN THE NEXT TWO MONTHS OR

So, MY COLLEAGUES IN WASHINGTON

WILL CONTINUE TO PUT THE HONG KONG CASE TO MEMBERS OF CONGRESS.

"THEY WILL DO SO IN CONCERT WITH OUR NATURAL ALLIES IN THE U.S. THE IMPORTERS, RETAILERS AND LARGE BUSINESS CORPORATIONS WHICH HAVE A STAKE IN CHINA, HE SAID.

ON TEXTILES, MR CHAU SAID THE MULTIFIBRE WHICH PROVIDED THE LEGAL FRAMEWORK FOR ALL OUR AGREEMENTS, WOULD EXPIRE IN 35 DAYS' TIME.

HE SAID

WHILE

OUR TEXTILE EXPORTS AFTER CONTINUE UNDER THE EXISTING BILATERAL AGREEMENTS, WOULD EXPIRE AT THE END OF THIS YEAR.

ARRANGEMENT (MFA), BILATERAL TEXTILES

JULY 1991 WOULD THESE AGREEMENTS

"WE WILL HAVE TO DISCUSS WITH OUR TRADING PARTNERS THE NEW ARRANGEMENTS FOR NEXT YEAR. AMONG OTHER THINGS, OUR AIM IS TO SECURE ARRANGEMENTS WHICH WILL PROVIDE CERTAINTY AND CONTINUITY FOR OUR EXPORTS, HE SAID.

"

MR CHAU SAID HE WAS PLEASED TO SAY THAT HONG KONG HAD RECENTLY REACHED A TWO-YEAR AGREEMENT WITH FINLAND ON IMPROVED TERMS.

THE

"WE HOPE THIS WILL SET A GOOD PRECEDENT FOR THE RENEGOTIATION OF OUR OTHER BILATERAL AGREEMENTS, INCLUDING THOSE WITH

EUROPEAN COMMUNITY AND CANADA LATER THIS YEAR, HE SAID.

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/AS REGARDS