XN000022-1993-05-13 — Page 7

THURSDAY, MAY 13, 1993

I THINK THAT

GOVERNOR:

NO.

THEY DIDN'T, BUT THEY KNOW OUR POSITION ON BOTH CHINA'S APPLICATION AND ON TAIWAN'S APPLICATION AS WELL, AND THEY KNOW THE POSITION OF THE UNITED KINGDOM. MAJOR TRADING PARTNERS, MAJOR TRADING NATIONS, SHOULD BE MEMBERS OF THAT CLUB AND THAT IS A POINT OF VIEW WE HAVE PUT, I

IN WASHINGTON AND ELSEWHERE.

-FORCEFULLY,

MEMBER'S QUESTION BECAUSE

IF I MAY BUILD ON THE I KNOW IT IS ALSO A POINT

THINK FAIRLY

HONOURABLE THAT HE IS THAT THERE IT IS VERY FREE

CONCERNED ABOUT, WE ALSO OF COURSE EXPRESSED OUR CONCERN SHOULD BE AN EARLY CONCLUSION OF THE GATT URUGUAY ROUND. IMPORTANT FOR US THAT THE WORLD AGREES NEW RULES WHICH MEAN MORE TRADE AND WE ARE THE BEST POSSIBLE EXPONENT OF THAT CASE. I DOUBT WHETHER THERE IS ANY OTHER COMMUNITY WHICH HAS BEEN SO COMMITTED TO THE PRINCIPLES OF FREE TRADE AS WE HAVE BEEN AND I THINK THOSE PRINCIPLES OFFER MORE HOPE TO HUMANITY THAN MOST OTHER LIKELY ECONOMIC DEVELOPMENTS.

A POINT I MADE AGAIN AND AGAIN IN THE UNITED STATES AND A POINT MADE IN A SPEECH WHEN I VISITED EUROPE LAST MONTH, IS THAT FREE TRADE IS, IN MY JUDGMENT, LIKE RIDING A BICYCLE. WHEN YOU'RE RIDING A BICYCLE ONCE YOU STOP TURNING THE PEDALS YOU FALL OFF. WITH FREE TRADE, ONCE YOU MOVE AWAY FROM THE PRINCIPLES OF FREE TRADE THERE IS A TERRIBLE DANGER OF FALLING INTO PROTECTIONIST PUDDLES. UNLESS YOU ARE COMMITTED ΤΟ THE PRINCIPLES, YOU ARE ALL тоо LIKELY ΤΟ COURT PROTECTIONISM, AND PROTECTIONISM, AS SURE AS NIGHT FOLLOWS DAY, MEANS HIGHER PRICES FOR CONSUMERS, LOWER JOBS AND LESS ECONOMIC GROWTH.

MR ALBERT CHAN(THROUGH INTERPRETER):

MR GOVERNOR, REGARDING YOUR VISIT TO THE STATES, YOU WERE WARMLY WELCOMED BY TOP LEADERS IN THE STATES AND YET WHAT YOU SAID AND WHAT YOU DID IN THE STATES WAS ALSO CRITICISED BY STUDENTS OVERSEAS, IN THE STATES THAT IS, AND THEY SAY THAT YOU DO NOT REALLY PAY ENOUGH ATTENTION TO HUMAN RIGHTS, AND THE CHINESE GOVERNMENT HAS ALSO CRITICISED YOU FOR INTERNATIONALISING THE HONG KONG ISSUE. AND SO TO YOU, MR GOVERNOR, THIS TIME WHAT IS YOUR CONTRIBUTION TOWARDS THE RENEWAL OF MFN AND HAVE YOU RECEIVED COMMITMENT FROM THE UNITED STATES THAT HONG KONG'S ECONOMY WILL NOT BE AFFECTED BY ANY CHANGES IN US-CHINA TRADE

RELATIONSHIPS?

-

GOVERNOR:

LET ME DEAL WITH THOSE QUESTIONS IN ORDER: HUMAN RIGHTS, INTERNATIONALISING WHICH HAS TURNED INTO A CURIOUS MORTAL SIN AND MEN AND THE IMPACT THAT I MIGHT HAVE HAD ON THE DEBATE IN WASHINGTON.

/NO COMMUNITY