XN000022-1995-07-19 — Page 12

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"This means first of all completing the structure. We want to see all of the WTO institutions up and running, including appointment of the Appellate Body," he said.

"A strong and effective dispute settlement body is particularly important for us. The predominance of re-exports in our trade leaves us peculiarly vulnerable to disputes between our major partners."

He explained that under the rules of the game, a place through which goods were re-exported had no "locus", no formal role to play in any dispute between the country of production and the country of final consumption.

"If as happened last year, the European Union slaps quota on certain Chinese products, we have no say in the matter. Hong Kong thus has a special interest in ensuring that disputes of this nature can be handled in a fair and open manner," he said.

"Equally obvious, we have a special interest in China becoming a member of the WTO."

Mr Miller said Hong Kong's interests also lay in seeing a successful conclusion to the unfinished business of the Uruguay Round in the services sector - financial services, maritime services and basic tele-communications. He pointed out that financial services were particularly important as Hong Kong ranked fourth in the world as a banking centre and eighth in market capitalisation.

"Negotiations on financial services have reached a critical point. A deal is very close, but to the amazement and frustration of all the United States is saying that it will not join the final agreement," he said.

"We are determined that this should not be allowed to discourage others from going ahead and have been working actively with the European Union, the ASEAN countries, Australia, New Zealand, Canada, Chile and many others who are of the same mind. "We sincerely hope that Japan will also come on board so that the US is left with the stark choice of signing on or being in the ignominious position of 'free- rider' in a field where it leads the world."

As to the future, Mr Miller said Hong Kong believed that, among other things, competition policy and anti-dumping policy must be discussed together as two sides of the same coin.

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