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Special 301 negotiations

In response to a statement issued on December 31, 1994 by the US Trade Representative (USTR) on the Special 301 negotiations between the US and China, the Secretary for Trade and Industry, Mr T H Chau, said today (Sunday):

"Since China and the US are our two largest trading partners, the Hong Kong Government is naturally concerned about any US Special 301 action against Chinese products. We would be very concerned about any adverse effect such measures might have on Hong Kong's economy."

On December 31, 1994 the USTR announced that the US would take retaliatory actions against China if it did not agree to address US intellectual property rights. concerns. The USTR has published a proposed list of Chinese products which are being considered for retaliation. Public comments on the list can be submitted to the USTR until January 30, 1995. In addition to receiving written comments, the USTR will hold public hearings on January 24 to January 25. According to the announcement, the USTR will make a final determination on February 4.

"We note that the US has published the proposed retaliation list not with a view to implementing it immediately, but for the purpose of seeking public comments. We hope that the two sides will continue to work towards resolving their differences at the negotiating table," Mr Chau said.

In 1991 the US made an announcement of proposed retaliatory measures against Chinese products, while continuing with discussions with the Chinese Government. The two sides reached an agreement eventually and no US retaliatory measures were taken.

When asked about Hong Kong Government's role in the matter, Mr Chau said: "This is primarily a bilateral trade issue between China and the US. Hong Kong does not have a direct role."

"As in the past, we will give the US authorities our assessment of the possible impact on Hong Kong of the proposed US action against Chinese products, and emphasise to the US Administration our hope that Hong Kong's interest would be taken into account in any decision which the US may take.

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