XN000022-1992-10-16 — Page 3

N

FRIDAY, OCTOBER 16, 1992

QUESTION:

WE ARE

THE

THE

MR GOVERNOR, I ONLY HAVE ONE QUESTION BUT BEFORE I ASK MY QUESTION I WOULD LIKE TO EXPLAIN SOMETHING FIRST. I REPRESENT COSMETICS TRADE AND I WOULD LIKE TO EXPLAIN TO YOU THE DIFFICULTY COSMETICS AND PERFUMES TRADE IS FACING NOW,

VERY GLAD TO LEARN ABOUT YOUR FIVE YEAR PLAN, IT IS VERY CONSTRUCTIVE AND IT IS CONDUCIVE TO THE PROSPERITY AND STABILITY OF HONG KONG. AND THE MOST IMPORTANT THING OF ALL, THE LEADERSHIP IS VERY STRONG AND CLEAR. YOU HAVE ASSURED US MORE THAN ONCE THAT YOU WANT TO MAINTAIN ECONOMIC GROWTH, YOU WANT THE PEOPLE TO PRODUCE WEALTH AND TO MAINTAIN FAIR COMPETITION, BUT THE COSMETICS TRADE IS THE ONLY TRADE WHICH SUFFERS A VERY CRAZY 30% DUTY, IT IS A HINDRANCE TO TRADE AND IT STOPS THE CUSTOMERS FROM BUYING CHEAPER PRODUCTS, AND ESPECIALLY FOR TOURISTS, THEY CAN GET THINGS CHEAPER ELSEWHERE. AND IN OUR NEIGHBOURING COUNTRIES, THEY ARE LOWERING THE TAX.

WELL, I AM MORE THAN HALFWAY THROUGH, I HOPE YOU DON'T MIND.

WE ARE IN THE FRONT LINE OF THE RETAIL TRADE BUT BECAUSE OF THE GOVERNMENTAL INTERFERENCE THE PRICE HAS BEEN PUSHED HIGHER AND HIGHER. THE DUTY ON COSMETICS AND PERFUMES MEANS ONLY VERY LITTLE TO THE TERRITORY REVENUE, BUT THEY MEAN A LOT TO US AND THEY CAUSE A LOT OF PAPERWORK, AND I AM SURE THAT THIS 30% DUTY IS FORMULATED BY SOME SHORT-SIGHTED OFFICIALS WHO DON'T KNOW HOW TO PRODUCE WEALTH.

I'M SURE YOU ARE VERY BUSY AND I DON'T THINK YOU HAVE TIME TO BUY PERFUME TO GIVE TO YOUR WIFE AS PRESENTS. IF YOU GO SHOPPING SOMETIME I'M SURE YOU CAN FEEL THE IMPACT ON THE CONSUMERS. WELL, I HOPE YOU CAN DO SOMETHING TO HELP THIS TERRITORY TO BECOME A DUTY-FREE PORT AND A SHOPPER'S PARADISE. THANK YOU, MR GOVERNOR.

—

-

GOVERNOR :

WHEN YOU SAID YOU WERE FROM THE COSMETICS AND PERFUME INDUSTRY AND WERE ASKING THE FIRST QUESTION, I THOUGHT PERHAPS YOU WERE GOING TO TRY TO TELL ME SOMETHING ABOUT MYSELF. YOU'RE QUITE RIGHT THAT I DON'T USE COSMETICS MYSELF EXCEPT WHEN I SHAVE

OR EXCEPT WHEN I'M IN A TELEVISION STUDIO. BUT I RECOGNISE THAT IT'S AN IMPORTANT INDUSTRY. WHAT I WOULD LIKE TO SUGGEST AND THIS WILL ENABLE US TO MOVE ON TO THE NEXT QUESTION VERY RAPIDLY IF YOU WOULD LIKE, WITH REPRESENTATIVES OF THE INDUSTRY TO COME AND SEE ME SOMETIME ΤΟ TALK ABOUT THE PROBLEMS OF THE INDUSTRY, I'D BE DELIGHTED TO MEET YOU. A DEAL?

I JUST ADD THIS POINT. YOU FINISHED BY REFERRING TO THE IMPORTANCE OF RETAILING TO HONG KONG. THAT IS ABSOLUTELY RIGHT. WE ARE THE TOURIST CENTRE OF ASIA; MORE TOURISTS COMING HERE THAN ANYWHERE ELSE IN ASIA, AND ONE REASON WHY THEY COME IS TO TAKE ADVANTAGE OF OUR SUPERB SHOPS.

GOVERNOR:

IT'S JUST A LETTER FROM A GENTLEMAN WHO WAS VERY POLITE

AND THAT PROVES THAT VIRTUE IS ITS OWN REWARD.

THE OTHER EVENING.

/QUESTION: