XN000022-1994-10-07 — Page 5

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FRIDAY, OCTOBER 7, 1994

GATT REVIEW ON HK'S TRADE POLICIES AND PRACTICES

THE TWO-DAY MEETING CONVENED BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) COUNCIL IN GENEVA TO REVIEW HONG KONG'S TRADE POLICIES AND PRACTICES COMPLETED YESTERDAY (THURSDAY}.

THE MEETING WAS WELL ATTENDED AND MANY GATT MEMBERS TOOK THE OPPORTUNITY TO PRAISE HONG KONG'S OPEN MARKET, ITS PURSUIT OF FREE TRADE, ITS SUCCESSFUL TRANSFORMATION FROM A MANUFACTURING TO A SERVICES-LED ECONOMY AND ITS STAUNCH FAITH IN THE MULTILATERAL, TRADING SYSTEM.

IN RESPONDING TO MEMBERS' WIDE-RANGING STATEMENTS AND QUESTIONS ABOUT HONG KONG'S TRADE POLICIES AND PRACTICES, THE LEADER OF THE HONG KONG DELEGATION, MRS REGINA IP, THE DEPUTY SECRETARY FOR TRADE AND INDUSTRY, RE-AFFIRMED HONG KONG'S COMMITMENT TO FREE TRADE AND SUPPORT FOR THE MULTILATERAL TRADING SYSTEM WHICH HAD SERVED HONG KONG SO WELL IN THE PAST.

"HONG KONG WILL CONTINUE TO PLAY AN ACTIVE ROLE IN THE GATT BOTH BEFORE AND AFTER 1997, SHE SAID.

"OUR FREE TRADE AND THERE IS NO QUESTION OF US

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FREE MARKET POLICIES HAVE SERVED US WELL SO DEPARTING FROM THESE PRINCIPLES."

DURING THE MEETING, IN-DEPTH DISCUSSION TOOK PLACE ON A NUMBER OF ISSUES INCLUDING, THE GENERAL POLICY FRAMEWORK UNDER WHICH HONG KONG OPERATES, HONG KONG'S ECONOMIC RELATIONSHIP WITH ITS ASIAN NEIGHBOURS, POST-URUGUAY ROUND TRADE POLICY AND OTHER SPECIFIC SUCH AS RULES OF ORIGIN, EXCISE DUTIES ON ALCOHOLIC BEVERAGES IMPLEMENTATION OF CERTAIN URUGUAY ROUND AGREEMENTS.

ISSUES AND THE

MRS IP SAID THE MEETING HAD ENABLED GATT MEMBERS ΤΟ HAVE A BETTER UNDERSTANDING OF HONG KONG'S TRADE POLICY AND THE OPERATION OF ITS PRACTICES AND PROCEDURES.

AMBASSADOR

IN HIS CLOSING REMARKS, THE CHAIRMAN OF THE GATT COUNCIL. ZAHRAN FROM EGYPT SAID THAT "COUNCIL MEMBERS CONSIDERED HONG KONG AS AN EXEMPLARY CASE OF AN OPEN, MARKET-DRIVEN ECONOMY FOUNDED ON THE MOST-FAVOURED-NATION PRINCIPLE. HONG KONG HAD MADE SIGNIFICANT CONTRIBUTIONS TO THE URUGUAY ROUND PROCESS AND FURTHERED A SUCCESSFUL CONCLUSION."

HE

ADDED: "HONG KONG'S RAPID ECONOMIC ASCENT TESTIFIES TO THE BENEFITS THAT A SMALL TERRITORY, VESTITUTE OF NATURAL RESOURCES, CAN REAP FROM THE FREE OPERATION OF MARKET. FORCES.

"RAPID STRUCTURAL ADJUSTMENT, AN OUTWARD-LOOKING. BUSINESS COMMUNITY, INSTITUTIONAL STABILITY, AND THE AUTHORITIES' UNFETTERED COMMITMENT TO AN OPEN, MOST FAVOURED NATION-BASED TRADE REGIME HAVE HELPED TO SHAPE AND PROPEL ONE OF THE WORLD'S MOST SUCCESSFUL ECONOMIES."

/"WITH THE