TNAG-1055-FCO40-1305-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 13

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Extract from a speech by Mr. W. Dorward, Director of Trade Industry and Customs," when opening the Hong Kong Electronics Fair on 14 October, 1981

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Mr. Williamson..

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QUOTE

THE PROBLEMS OF THE ELECTRONICS INDUSTRY ARE NOT CONFINED TO TECHNICAL MATTERS. AFTER TEXTILES IT IS PROBABLY THE INDUSTRY MOST IN THE FIRING LINE AS FAR AS PROTECTIONIST PRESSURES ARE CONCERNED. IT IS IRONIC, I ALWAYS THINK, THAT SO MUCH OF THIS SPACE AGE INDUSTRY IS LABOUR INTENSIVE, WHICH MAKES IT A PRIME TARGET FOR CLAIMS IN THE DEVELOPED. COUNTRIES FOR PROTECTION AGAINST SO CALLED LOW COST' COMPETITION. POLITICALLY THESE CLAIMS ARE OFTEN HARD TO RESIST BECAUSE OF THE SIGNIFICANCE OF THE ELECTRONICS INDUSTRY IN DEFENCE PRODUCTION. IT IS ARGUED THAT PROTECTED PRODUCTION IN CONSUMER ELECTRONICS, WHERE HONG KONG AND MOST DEVELOPING COUNTRIES ARE CONCENTRATED, IS ESSENTIAL TO KEEP THE WHOLE INDUSTRY VIABLE.

I AM NOT LOOKING TO DISPUTE THAT CASE TODAY, I MERELY TAKE NOTE OF THE SITUATION AND OF THE HANDFUL OF VOLUNTARY RESTRAINT AGREEMENTS OR 11ORDERLY MARKETING ARRANGEMENTS' WHICH HAVE BEEN ENTERED INTO BY A NUMBER OF COUNTRIES IN THIS REGION. THESE ARE PARTICULARLY CONCENTRATED ON TELEVISION SETS, AN AREA OF PRODUCTION WHICH I THINK WE CAN EXPECT TO SEE SIGNIFICANTLY EXPANDED IN HONG KONG IN THE NEAR FUTURE.

THE MESSAGE IS OBVIOUS AND I MERELY WANT TO SAY TO YOU TODAY, AND. TO ANYONE ELSE WHO IS INTERESTED, THAT THE HONG KONG GOVERNMENT IS OPPOSED TO THE CONCEPT OF VOLUNTARY RESTRAINTS ON THIS OR ANY OTHER SECTOR OF TRADE AND WILL RESIST THEM WITH ALL VIGOUR. THIS IS NOT OUT OF BLIND PRINCIPLE. BUT OUT OF THE CONVICTION THAT SUCH RESTRAINTS ARE

INEFFICIENT AND INEFFECTUAL. AND THAT PROTECTION FOR ANY INDUSTRY, IF IT IS TRULY JUSTIFIED, SHOULD BE NON- DISCRIMINATORY AND AFFECT DEVELOPED AND DEVELOPING COUNTRIES

ALIKE.

UNQUOTE