4
"The reaching of nil tariffs within EFTA is now adversely affecting Hong kong's ability to compete in some areas of the United Kingdom market. This is part cularly marked in the synthetics industry, where Hong Kong has to surmount a tariff barrier reaching as high in some cases as more than 30%. Coupled with the problem of nil tariffs in EFTA is the removal of all tariffs with Southern Ireland.
"Hong Kong has been urged to diversify her industries and move away from textiles. An effort made recently to develop musical movements has met with such stiff tariff barriers in the U.. that the industry, unable to compete with duty-free entry by Switzerland, is now closing down. Hong Kong industry tends to look upon the U.A. market as a home market. Without Preference to give Hong Kong manufacturers the incentive to try out new products and in the absence of a home market there will be less desire by Hong Kong manufacturers to move into new industries.
A
P
"The United Kingdom has a moral responsibility for Hong Kong much more so than for her EFTA partners and Hong Kong feels that some arrangements should be made to enable her to maintain the markets which have been hard won, and to experiment in developing new industries.'
#1
The reply, which came from Sir Arthur Snelling, was that it was impossible to give a clear-cut answer to this problem. Sir Arthur said that, broadly speaking, it was the British manufacturers who suffered from the duty-free imports from EPTA countries, as the duty was to protect British manufacturers, even from Commonwealth countries, including Hong hong.
Dr. Chung remarked that what worried Hong Kong most was the snowball effect resulting from trade-grouping now, EFTA and EEC, and later the whole of Europe might be integrated to for one watertight trade bloc. He said that eventually Hong aong yould find itself being completely left out, having nowhere to sell its products.
Mr. Bowden replied that Dr. Chung's fears were unfounded, as Great Britain would certainly do her best to negotiate for the interests of all.
4.
LONG-TERM INDUSTRIAL FINANCE
Mr. C.A. Choi took up the fourth topic, and said:
"It is my turn, Sir, to bring to you the subject of Long-Term Industrial Finance for your consideration.
"Owing to the pressure from lower costs in labour wages and industrial land of our neighbours, and to the needs of world-wide markets, Hong Kong is continuously moving into more sophisticated industries, and this process is being accelerated. These types of industries normally require great carital investment. This "Long Term Low-Interest loan" is
an urgent need in Hong Kong industry. We have medium and short-term capital in Hong Kong, but capital on long-term loans with low interest is not made available. In other developing countries, it is quite easy to obtain long-term low interest loans, as they have access to external funds to help development.
"Hong Kong needs this kind of external assistance, and the question is whether consideration can be given to the setting-up of a system of "Long-Term Industrial Loans with Low Interest", or to the obtaining of assistance from the Colonial Development Fund.
"Your advice on this point would be greatly appreciated."
No comments yet.
Private notes are available after approval.