XN000022-1992-01-03 — Page 2

FRIDAY, JANUARY 3, 1992

1

US GOVT INFORMED OF POTENTIAL ADVERSE IMPACT OF

SPECIAL 301 ACTION ON HK

HONG THE ADMINISTRATION

* *

KONG GOVERNMENT HAS

PROVIDED

THE

UNITED

STATES

IMPACT

WITH A BROAD ESTIMATE OF THE POTENTIAL ADVERSE ON HONG KONG IF PUNITIVE TARIFFS WERE TO BE IMPOSED ON ALL THE CHINESE ACTION, THE PRODUCTS ON THE US'S PRELIMINARY LIST FOR SPECIAL 301 SECRETARY FOR TRADE AND INDUSTRY, MR T.H. CHAU, SAID TODAY (FRIDAY).

MR CHAU HOPED THE GOVERNMENTS OF THE US AND CHINA WOULD REACH A ACCEPTABLE SOLUTION OVER INTELLECTUAL PROPERTY RIGHTS

MUTUALLY PROTECTION.

"THERE IS GREAT CONCERN IN HONG KONG ON THE POSSIBLE EFFECTS ON EVENT HONG KONG OF ANY ACTION WHICH THE US GOVERNMENT MAY TAKE IN THE THAT A MUTUALLY ACCEPTABLE SOLUTION IS NOT REACHED,

HE SAID.

THE PRELIMINARY LIST OF PRODUCTS, WHICH US TRADE REPRESENTATIVE VALUED AMBASSADOR CARLA HILLS SAID WOULD BE NARROWED DOWN TO PRODUCTS

ARTICLES AS BEER, AT ABOUT HALF THE CURRENT TOTAL, INCLUDED SUCH ALUMINUM ORES,

IMITATION PHARMACEUTICALS, FOOTWEAR, JEWELRY, HARDWARE, ELECTRONIC INSTRUMENTS AND WATCHES.

SILK APPAREL,

INDICATED THAT

THE PRODUCTS

+

THE RESULTS OF HONG KONG GOVERNMENT RESEARCH OVERALL, SOME TWO THIRDS OF THE IMPORTS INTO THE US OF CONCERNED ARE RE-EXPORTED FROM HONG KONG.

"OUR

AND

BROAD ESTIMATE IS THAT UP TO 7,200 JOBS IN HONG KONG US$200 MILLION OF VALUE-ADDED CONTRIBUTION TO HONG KONG'S GDP COULD BE LOST IF THE US WERE TO TAKE ACTION AGAINST ALL THE PRODUCTS LIST.

ON THE

WOULD "THE POTENTIAL ADVERSE IMPACT ON HONG KONG OF ANY ACTION

AFFECTED, THE HOWEVER BE LESS THAN THIS, DEPENDING ON THE PRODUCTS

OTHER SCALE OF THE ACTION, THE ACTUAL SITUATION IN THE US MARKET, AND FACTORS, MR CHAU ADDED.

[

IN THE LIGHT OF THESE FINDINGS, MR CHAU WELCOMED THE ASSURANCES ANY ACTION GIVEN BY AMBASSADOR HILLS THAT THE US WAS CONCERNED THAT

HARM TO HONG THAT MIGHT BE TAKEN SHOULD CAUSE THE LEAST AMOUNT OF

KONG.

IN A FORMAL COMMUNICATION TO THE US KONG, MR CHAU ALSO EMPHASISED THE INVESTMENT CONFIDENCE IN HONG KONG.

IN CONSUL-GENERAL

HONG

ADVERSE POSSIBLE

IMPACT ON

THE

"A SUBSTANTIAL SET-BACK IN TWO-WAY TRADE BETWEEN CHINA AND US THROUGH HONG KONG WOULD UNDERMINE HONG KONG'S POSITION AS A GATEWAY FOR BUSINESS IN AND WITH CHINA.

"THE FURTHER DEVELOPMENT OF OUR RE-EXPORT TRADE, WHICH HAS EMERGED AS A MAJOR IMPETUS OF HONG KONG'S ECONOMIC GROWTH, WOULD BE SIGNIFICANTLY AFFECTED," MR CHAU SAID.

RE-

ALSO

/ON DECEMBER