XN000022-1993-03-05 — Page 14

FRIDAY, MARCH 5, 1993

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POSSIBLE IMPACT ON HK IF CHINA LOST MFN STATUS

* * * * *

NATION

HK$118

THE GOVERNMENT ESTIMATES THAT, IF CHINA'S MOST FAVOURED (MFN) TRADING STATUS WERE WITHDRAWN, HONG KONG MIGHT LOSE BILLION TO HK$166 BILLION IN OVERALL TRADE; HK$16 BILLION TO HK$23 BILLION IN INCOME AND AROUND 49,000 TO 69,000 IN JOBS.

THE TRADE DEPARTMENT TODAY (FRIDAY) RELEASED THE GOVERNMENT'S LATEST ASSESSMENT ON THE IMPACT ON HONG KONG'S ECONOMY IF CHINA WERE TO LOSE ITS MFN TRADING STATUS IN THE U.S.

OF TRADE, TOLD THAT

AT A PRESS CONFERENCE, THE ACTING DIRECTOR-GENERAL MR CHRISTOPHER JACKSON, SAID LOCAL TRADE ASSOCIATIONS WERE REMOVAL OF CHINA'S MFN TRADING STATUS BY U.S. WOULD HAVE A DIRECT ADVERSE IMPACT ON HONG KONG'S RE-EXPORTS OF CHINA ORIGIN TO THE U.S.

"A REDUCTION OF UP TO HK$66 BILLION WORTH OF RE-EXPORTS DOUBLE THE IMPACT THAT WE ESTIMATED IN 1990, MR JACKSON SAID.

"

IS

"THIS IS LARGELY THE RESULT OF THE VERY RAPID GROWTH IN HONG. KONG'S RE-EXPORTS OF CHINA-MADE GOODS TO THE U.S. OVER THE PAST FEW YEARS.

**

ON THE LONG-TERM EFFECTS, MR JACKSON EXPLAINED THAT THEY WERE MUCH MORE DIFFICULT TO QUANTIFY AND WOULD DEPEND IN PART ON ANY RETALIATION TAKEN BY CHINA.

"HONG KONG'S ROLE AS A GATEWAY TO CHINA AND BUSINESS CONFIDENCE IN THE TERRITORY WOULD BE SERIOUSLY AFFECTED BY WITHDRAWAL OF MFN STATUS," HE ADDED.

PRESIDENT CLINTON IS REQUIRED BY LAW TO INDICATE BY JUNE 3 WHETHER HE INTENDS TO RENEW CHINA'S MFN STATUS FOR ANOTHER YEAR.

"WE HAVE STEPPED UP OUR ACTIVITIES IN WASHINGTON, MR JACKSON

"

SAID.

"WE HAVE REINFORCED OUR LOBBYING TEAM AND ARE WORKING WITH U.S. BUSINESS ALLIES TO IMPRESS UPON MEMBERS OF THE NEW ADMINISTRATION AND CONGRESS THE DAMAGE WHICH MFN WITHDRAWAL WOULD DO TO HONG KONG AND TO U.S. INTERESTS IN THIS REGION."

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