XN000022-1991-11-28 — Page 2

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THURSDAY, NOVEMBER 28, 1991

STI ON SPECIAL 301 NEGOTIATIONS * * * * *

IN RESPONSE TO MEDIA REQUESTS FOR COMMENTS ON CONCERNING THE SPECIAL 301 NEGOTIATIONS BETWEEN THE U.S. THE SECRETARY FOR TRADE AND INDUSTRY, MR T.H. CHAU, (THURSDAY):

DEVELOPMENTS

AND CHINA, SAID TODAY

"I UNDERSTAND THAT THE U.S. AND CHINA HAVE BOTH MADE CLEAR THAT THE NEGOTIATIONS CAN CONTINUE IN THE COMING WEEKS, DESPITE THE U.S. DECISION TO PUBLISH A LIST OF PRODUCTS ON WHICH THEY MAY TAKE RETALIATORY ACTION IF THE NEGOTIATIONS DO NOT END IN AGREEMENT.

TWO

"I WELCOME THIS POSITIVE APPROACH, AND REMAIN HOPEFUL THAT THR SIDES WILL BE ABLE TO RESOLVE THEIR DIFFERENCES AT THE NEGOTIATING TABLE.

**

COMMENTING ON THE LIST OF PRODUCTS WHICH MIGHT BE SUBJECT ΤΟ RETALIATION THROUGH THE IMPOSITION OF TARIFFS AS HIGH AS 100 PER CENT, MR CHAU SAID:

"THE U.S. HAS DEVELOPED A LIST OF PRODUCTS ACCOUNTING FOR APPROXIMATELY US$1.5 BILLION OF CHINESE IMPORTS INTO THE U.S.

"WE MUST KEEP THIS IN PERSPECTIVE. WE SHOULD REMEMBER THAT, IF THE U.S. DOES TAKE ACTION, ON PAST PRACTICE ONLY A PORTION OF ITEMS ON THE LIST WILL BE AFFECTED. THE U.S. WILL CONSIDER COMMENTS ON THE LIST BEFORE COMING TO ANY FINAL DECISION.

"THE TRADE DEPARTMENT IS STILL EXAMINING THE POTENTIAL EFFECT ON HONG KONG. THIS MAY TAKE SOME TIME BECAUSE OF UNCERTAINTIES OVER THE PRECISE AMOUNT OF TRADE COVERED BY THE LIST.

"THE U.S. ADMINISTRATION IS ALREADY AWARE OF OUR CONCERN THAT HONG KONG'S INTERESTS OUGHT TO BE TAKEN INTO ACCOUNT IN ANY DECISION WHICH THE U.S. MAY TAKE. WE WILL, IF NECESSARY, SEEK CLARIFICATION FROM THE U.S. ON THE COVERAGE OF THEIR LIST, AND GIVE THEM INFORMATION AS WE CAN CONCERNING OUR RE-EXPORT DATA."

SUCH

THE TRADE DEPARTMENT WILL MEET THE RELEVANT TRADE ASSOCIATIONS AS WELL AS THE CHAMBERS OF COMMERCE LATER TODAY TO BRIEF THEM.

THAT

A SPOKESMAN FOR THE TRADE DEPARTMENT SAID: "WE UNDERSTAND THE U.S. LIST INCLUDES BEER, ORE, SILK TEXTILES, PHARMACEUTICALS, FOOTWEAR, IMITATION JEWELLERY, HARDWARE, ELECTRICAL AND ELECTRONIC INSTRUMENTS, AND WATCHES. RESTRAINED TEXTILES AND TOYS ARE NOT INCLUDED.

WILL BE PUBLISHED IN THE U.S. FEDERAL

"DETAILS OF THE LIST REGISTER IN THE NEXT FEW DAYS.

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