TNAG-1413-FCO40-1889-Future-of-Hong-Kong-annual-report-to-Parliament-on-Hong-Kong-1985 — Page 298

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for the renewal of the U.S. Scheme under the Generalised

System of Preferences, which will expire in January 1985, threaten to affect us adversely.

45.

The Government views all of these developments with great concern. We have already made known our views to the Government of the United States and, in respect of the Textiles issue, will continue to make every effort to restore the position both through bilateral consultations and in conjunction with other participants in the GATT and MFA.

46.

On a more hopeful note, the GATT this year completed its background study on

study on the trade in textiles and clothing to which I referred last year. A Working Party was subsequently established by the GATT Council to examine how trade in textiles can be further liberalized, hopefully by moving away from the MFA regime back towards the normal rules of the GATT. The Working Party's report will be presented to the GATT Council and to the annual session of the contracting

parties in November.

47.

All this is of great importance to Hong

Hong Kong.

Notwithstanding our efforts towards diversification, the textiles and clothing sector still accounts for 40% of our domestic exports and of our employment in manufacturing.

48.

There is general agreement that a modern Exhibition Centre would be of value to the expansion of Hong Kong's trade. The Hong Kong Trade Development Council has recently invited development proposals for the valuable site

on the Wan Chai waterfront to house such an Exhibition

Centre. This will fulfil a long felt need.

/(ii) Industry

...