HONG
Library Copy No. 43!
Date 16 MAY 1960
Library Book No.351.06
ANNUAL
1112
DEPARTMENTAL
REPORTS
KONG!
1958-59
HKS <73
DIRECTOR OF
COMMERCE AND INDUSTRY
PRICE: $4
Library Book No:351.06
HONG KONG
ANNUAL DEPARTMENTAL REPORT
BY THE
DIRECTOR OF
COMMERCE AND INDUSTRY
FOR THE
FINANCIAL YEAR 1958-59
PRINTED AND PUBLISHED BY S. YOUNG, ACTING GOVERNMENT PRINTER
AT THE GOVernment PreSS, JAVA ROAD, HONG KONG
1112
HK 574 ом
1112-
EXCHANGE RATES
When dollars are quoted in this Report, they are, unless otherwise stated, Hong Kong dollars. The official rate for conversion to pound sterling is HK$16 £1 (HK$1=1s. 3d.). The official rate for conversion to U.S. dollars is HK$5.714=US$1 (based on £1=US$2.80).
MARINE DEPARTMENT LIBRARY
Chapter
CONTENTS
Paragraphs
I. THE COLONY'S TRADE, 1958
General
Exports of domestic products and produce
Composition of trade
Direction of trade.
Imports and re-exports
Composition of trade
Principal trading partners
1
P
4
5 -6
7-9
10 - 12
13 17
J
18 - 38
II. ECONOMIC DEVELOPMENTS
General
39 - 40
Industry
41
*
43
Federation of Industries.
44 - 46
Land for industry
47 48
Financing of industry
49 - 50
Fuel costs
Water supplies
Merchandise marks and designs
Industrial efficiency
Commerce.
51
52
53 - 54
55 - 56
57 - 58
Negotiations with U.K. Cotton Board
59
*
60 - 61
Cotton Textile Agreement with Burma
Mainland China's economic offensive European Free Trade Area
Restrictions on Trade with other countries
Reactions to overseas restrictions
Conclusion
62 65
66
-
67 - 70
71 - 75
76
i
Chapter
III. GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES
General
Overseas Trade Relations Branch
Trade Promotion Branch
Overseas Offices
Industry and Certification Branch
Trade Licensing Branch
+
Supplies Branch
Dutiable Commodities Branch
Statistical Branch
The Preventive Service
Paragraphs
77
78
79 - 81
82 - 84
85
88
89
90
91 - 92
93 - 94
95 - 97
98 - 103
104 - 105
Accounts and Administration Branch Legislation
The Trade and Industry Advisory Board Public Relations
IV. OVERSEAS TRADE RELATIONS BRANCH
General
United Kingdom
France and her overseas territories
United States of America
Union of South Africa
•
Federation of Rhodesia and Nyasaland The Netherlands
Switzerland
Canada
Federal Republic of Germany
Commonwealth of Australia
New Zealand
British East Africa
•
106 - 111
112
113 - 115
116 - 119
120 - 122
123
124 - 125
126 - 127
+
128
129
130 - 131
132
133 - 134
·
135 - 137
138
139
140
141
-
142
The European Common Market and the
General Agreement on Tariffs and Trade General
Commercial Complaints and Disputes
Complaints under the Merchandise Marks
Ordinance
Official Exchange
ii
143 - 144
145
Chapter
V. TRADE PROMOTION BRANCH
Paragraphs
146
Local Exhibitions
Overseas activities
Melbourne
147 - 150
-Central America
151 - 154
Trade fairs 1959/60
155
Miscellaneous
156 - 160
Trade publications-C.I.F. Directory
161 - 163
-Trade Bulletin
164 - 168
Departmental library.
169
VI. OVERSEAS OFFICES
London Office
Tokyo Office
170 - 182
183 - 205
VII. INDUSTRY AND CERTIFICATION BRANCH
General
Industrial development
Land for industry
Certification
General
Inspections of factories and goods Standard certificates of origin
Commonwealth preference certificates Comprehensive certificates of origin Miscellaneous certificates
Fees
Enforcement
VIII. TRADE LICENSING BRANCH
General
Import licensing
Export licensing
Exports of cotton manufactures to
United Kingdom
206 - 207
208 - 217
218 - 223
224 - 228
229 - 231
232
233
-
238
239 - 241
+
242 243
-
244
245 - 246
247 - 248
249 - 251
252
254
255 - 257
Chapter
IX. SUPPLIES BRANCH
Reserved Commodities
Rice
Frozen Meat
Coal
Firewood
Foodstuffs
Accounts
X. DUTIABLE CommoditIES BRANCH
General
Revenue from duties
Revenue from licences
XI. STATISTICAL BRANCH
General
Trade statistics
Statistics of trade by parcel post
Mechanization
Retail price index
Assistance to other departments
XII. THE PREVENTIVE SERVICE
General
Paragraphs
258 262 - 264
261
265 - 266
267 - 271
272
273
274
.....
279
280 - 281
282 283
-
284 287
288 - 289
290 - 293
294 - 295
296 - 297
298 - 300
301 - 302
Organization
303
Training
304
Discipline
305 - 307
Searches
308 - 309
Dutiable commodities
310 - 316
Narcotics
317 - 320
Strategic commodities
321
Certificates of origin.
322
Merchandise marks
323
Bullion
324
Court actions
325
iv
Chapter
XIII. LEGISLATION
XIV. ACCOUNTS AND ADMINISTRATION BRANCH
Staff
General
Establishment
Paragraphs
326 - 334
335 - 336
337
Preventive Service
338 - 340
Retrenchment
341 342
Recruitment and training
343 - 347
Staff changes
348 - 355
Promotion prospects for Class V officers
356
Office accommodation
357
Accounts and Stores
Revenue
358
Expenditure
359
Treasury and audit inspections
360
Confiscated goods
361 - 362
Storage
363
Welfare
General
364
·
Housing of local officers
365 - 366
Departmental quarters
367 - 368
Education
369
Leave
370 - 372
Revenue Inspectors' Mess
373 - 376
Canteens
Amenities
Sports and recreation
377
378 - 380
381 - 382
V
Table
1.
2.
3.
4.
LIST OF TABLES
·
Total values of imports into and exports from
Hong Kong, by countries, 1957 and 1958
Total values of imports into and exports from
Hong Kong, by commodities, 1957
1957 and 1958
Total values of exports of products wholly or principally of Hong Kong origin, by countries, 1957 and 1958
Total values of exports of products wholly or principally of Hong Kong origin, by com- modities, 1957 and 1958
Page
(Ch. I) 73
(Ch. I) 78
(Ch. I) 82
(Ch. I) 84
5.
Volume of exports of selected products wholly or principally of Hong Kong origin, 1957 and 1958
(Ch. I) 86
6.
7.
Imports and re-exports, 1957 and 1958
Organization of the Commerce and Industry
(Ch. I)
87
Department
(Ch. III)
89
8.
Certification of Hong Kong Products
(Ch. VII)
90
9.
Net Revenue collected from all sources
(Ch. III)
91
10.
Duty from Dutiable Commodities (gross)
(Ch. X)
92
11. Revenue from Dutiable Commodities Licences
1958/59
(Ch. X)
93
12.
Confiscations under the Dutiable Commodities
and Dangerous Drugs Ordinances
(Ch. XII)
94
13.
Major confiscations under other Legislation
1958/59
(Ch. XII)
95
14. Distribution of staff
(Ch. XIV)
96
vi
P
MARINE DEPARTMENT LIBRARY
+
*1
•
+
HK$ Million
5.500
5,000
ANNUAL VALUES OF HONG KONG TRADE FIGURES
(1954-1958)
4,500
Imports
4.000
3,500
Total Exports
3,000
2,500
2,000
Re-exports
1,500
1,000
500
Exports Wholly or Principally of H.K. Origin
0
end 1954
1955
1956
1957
1958
I. THE COLONY'S TRADE IN 1958
GENERAL
THE value of the Colony's merchandise trade fell steadily during 1958, until at the end of November imports were down by 13.6% and exports by 4.1% compared with the corresponding eleven months of 1957. However trade picked up substantially in December, making the total of imports for the year $4,593.73 million, 10.8% less than in 1957, and for exports $2,988.80 million, a mere 0.9% less than in the previous year. The value of imports in December, $498.48 million, was the highest for any month since March 1951, and of exports, $323.89 million, the highest since June 1951.
2. All in all the year can be considered to have been not unsatisfac- tory for trade and even moderately successful for local industry; 1957 was in many ways an exceptional year and the apparent decline in the value of imports and exports is of no great significance. Much of the fall in value of imports can be laid at the door of the substantial decline in raw material prices, and the value of exports of locally made goods was actually 4.8% higher than in 1957 in spite of a pronounced fall in the price obtained for many exports: Some of the fall in the value of imports is also attributable to running down of surplus stocks accummulated as the aftermath of the closure of the Suez Canal. The entrepot trade in textile yarns and fabrics, base metals, paper and China produce generally also fell off considerably, lowering the figures for imports and exports accordingly.
3. It is of some significance that imports by volume, as far as they are measurable in the Trade Statistics, amounted to 5,422,249 tons, 4.6% more than in 1957. Exports amounted to 1,953,622 tons, 15.3% more than in 1957.
4. The direction and composition of trade are recorded and com- pared with 1957 in Tables 1 and 2.
EXPORTS OF DOMESTIC PRODUCTS AND PRODUCE
5. The subdivision of the Trade Statistics as from January 1959 into exports and re-exports has shown that about 70% of exports are goods that have been made or processed to a recognized degree in the
1
Colony, a remarkable change from 1953 when it is probable that only about 28.01% of exports could lay claim to domestic origin.
6. Tables 3 and 4 record the composition and direction of the export trade in domestic products as separately classified in the Trade Statistics, together with those items 90% or more of which have been found by analysis of export declarations to be of Hong Kong origin. The total value of such domestic exports in 1958 was $1,260.28 million or 42.2% of all exports.
Composition of Trade
7. Textiles and clothing have consistently been, and it will be seen from Table 4 that they remain, the principal props of the Colony's export trade, finding their largest markets in the U.K. and U.S.A. In 1958, exports of clothing (principally slacks and overalls, shirts, blouses, knitted underwear and gloves, but also many other items) represented 34.7% of total domestic exports, cotton piecegoods 18.3%, and cotton yarn 7.2%, altogether 60.2%. Relatively greater expansion of exports of other manufactures would therefore be welcome, but there were few signs of such development in 1958.
8. Other important domestic items of export were footwear (espe- cially rubber and canvas-topped rubber footwear), enamelware, toys and games (mostly of plastic), electric torches, and rattan furniture. In 1958 these items contributed 7.8%, 5.4%, 5.2%, 2.5%, and 1.8% to the value of all domestic exports. The value of exports of toys and games has risen remarkably in the last two years, but there was some fall off in the rate of expansion in 1958. Electric torches and metal lanterns have however been declining exports in terms of value since 1956.
9. Table 5 records the volume of selected products wholly or principally of Hong Kong origin. It will be seen that whereas there has been no change in the value of piecegoods exported, the volume of such exports increased by 12% compared with 1957.
Direction of Trade
10. The swing from Asia towards more highly developed countries as markets for Hong Kong goods is clearly demonstrated by the percentages of the total value of domestic exports recorded in the table below.
2
United Kingdom America
Europe
Asian Territories
Africa
Oceania
1956
1957
1958
23
23
26
12
18
23
3
5
7
40
31
25
15
17
13
6
6
6
11. The Commonwealth remains the best customer for the Colony's domestic products. Exports to the United Kingdom, the principal preference market, were valued at $328.6 million in 1958. Other territories which grant preference to Hong Kong goods, bought goods in 1958 to the value of $176.6 million, 14% of total domestic exports. 12. The principal territorial markets for the Colony's products in 1958 are listed in the table below in order of importance of value in 1958.
1958
United Kingdom
U.S.A.
Malaya
Indonesia
Thailand
Germany, Western
Australia...
Nigeria
French Equatorial and West Africa
Canada
Philippines
South Africa
1957 $ million
$ million
280.52
328.59
132.93
205.36
97.49
100.07
82.77
54.45
43.25
43.02
21.25
41.59
35.64
39.05
27.04
35.37
36.14
30.39
22.59
28.39
40.22
24.01
35.97
21.25
It is unprecedented to find no change in the order of importance of the five major purchasers, and perhaps indicative of a greater measure of stability than has obtained hitherto. The fall off in trade with South Africa is very marked.
Composition of Trade
IMPORTS AND RE-EXPORTS
13. Table 6 records the Colony's imports by main sections in the Statistical Classification, together with an estimate of re-exports, derived from subtracting from the totals for each section the figure for items wholly or principally of Hong Kong origin.
14. The figures for re-exports can at best be estimates because of shortcomings in the method of distinguishing them from exports of domestic products, and the weakness of the method is particularly evident from some of the negative quantities recorded as retained imports. Nevertheless, the figures give a clear indication of the relative
3
importance of certain items in the entrepot trade and some idea of the relative importance of goods retained for domestic consumption in terms of value.
15. There have been a number of marked changes in certain sec- tions of the imports list. Table 6 shows for instance a substantial fall in imports of ores and metal scrap, a large part of which have normally been re-exported to Japan; the re-export figures are mislead- ing as the products of shipbreaking are shown as re-exports under this head because of the uncertainty of their derivation. The reason for the fall in imports is the development of the local shipbreaking industry, which has reduced the entrepot trade. Similarly the fall in the value of imports of base metals from $331.67 million in 1957 to $199.94 million in 1958 is largely a reduction of imports of iron and steel bars and rounds, angle irons and joists, iron and steel plates and galvanized plates. There was considerable over-stocking of these items in 1957 and the local manufacture of reinforcing bars for building construction from iron and steel derived from shipbreaking has reduced the Colony's dependence on direct imports.
16. There has also been a noteworthy decline in the re-export trade in raw cotton, textile yarns, and fabrics. Domestic consumption of imported yarn and fabrics has also declined with the growth of the domestic spinning and weaving industry.
17. The increase in imports of manufactured fertilizers, once a very large sector of the entrepot trade, reflects a revival of buying by China during 1958.
Mainland China
PRINCIPAL TRADING PARTNERS
18. During 1958 China made an intensified effort to gain a foot- hold in the markets of South East Asia and, in furtherance of this aim, resorted to price cutting. The effect on Hong Kong was that a few local industries suffered a temporary setback to their exports, although some countries in the area reacted firmly to protect their own industries. Another feature of China's export drive was the direct shipment of goods from ports in that country, frequently in ships owned or chartered by China, and by-passing Hong Kong. As a result the re-export trade in China produce (tung oil, teaseed oil, citronella oil, tea, hides, feathers, etc.) diminished further.
19. The value of trade with China, both of imports and of exports, however increased in 1958 compared with 1957, exports turning
4
upwards for the first time since 1951. Imports from China in 1958 represented 30% of the value of total imports, foodstuffs alone accounting for 56% of all imported foodstuffs. The value and quantity of purchases of cattle, pigs and poultry, rice, fish and sugar all increased in 1958, and this was accompanied by a fall in unit prices in most cases.
Japan
20. The re-emergence of Japan in the markets of the world has meant intense competition for Hong Kong especially in textiles and cheap manufactured goods. On the other hand it has resulted in greatly increased trade with Japan especially up to 1956, since when balance of payments difficulties have forced her to reduce her imports. A variety of factors has had the effect of reducing Japanese exports both directly to Hong Kong and through the Colony to South East Asian markets, so that the value of the Colony's imports from Japan has declined considerably.
21. In 1958 imports from Japan were valued at $597 million ($811 million in 1956) and exports to Japan at $120 million ($318 million in 1956). Forty-eight per cent of the value of imports was accounted for by textile yarns, fabrics, made-up articles and related fabrics, while 29% of exports were metalliferous ores and metal scrap. Japan takes very few Hong Kong manufactures-only $7.3 million in 1958— but buys considerable quantities of metal scrap derived from the breaking up of ships and machinery.
Malaya
22. In terms of the value of total exports, Malaya has been for several years one of Hong Kong's most valuable customers. She has been consistently within the first three leading countries on the export list, both for re-exports and for local manufactures. There has always been a trade surplus in Hong Kong's favour, rising from $168.9 million in 1954 to $279.4 million in 1958. This marked increase in the visible trade balance is largely due to a fall in imports from Malaya, a proportion of which were formerly re-exported to China, coupled with increased exports of Hong Kong manufactured goods.
23. Imports from Malaya were valued at $102.8 million in 1958 to which figure they had fallen from $161.6 million in 1954. A con- siderable fall took place in 1957 in imports of fuel. Fuel oil is the most important import followed by charcoal and firewood, smoked
5
*
and crepe rubber, bones, horns, hooves, etc., rattan cane and plants and flowers for use in the manufacture of Chinese types of medicine.
24. In 1958 the value of total exports to Malaya was $382.2 million, of which $100.1 million represented products wholly or prin- cipally of Hong Kong manufacture. The re-export trade is mainly in Chinese produce, foodstuffs especially being one of Hong Kong's chief exports to Malaya. Fresh fruits and fresh, dried and preserved vegetables are the main items, while also of importance are refined sugar, cereal preparations, spices, tea and eggs.
25. The value of the re-export trade to Malaya in the produce of China, the United States and Japan represents some 74% of all exports but, in spite of competition, Hong Kong has developed and expanded the sales of her own manufactured products in Malaya.
26. Clothing is the most important export after which come footwear, umbrellas, plastic articles, and toys and games. The trade in miscel- laneous manufactured articles, which has increased over the period, is principally in Hong Kong products.
Indonesia and Thailand
27. Exports to the countries of South East Asia depend upon their capacity to import, which in turn is determined by world demand for, and prices of, their primary produce. Exports depend also upon the attitude of these countries towards protectionist policies, upon political factors, and whether or not they are in balance of payment difficulties. The greater part of exports to these countries from Hong Kong are re-exports; demand is normally strong but volatile, influenced from year to year by changes in the factors noted above.
28. In 1958 exports to Indonesia were valued at $210.7 million ($501.4 million in 1956) of which $154.6 million or 73% was accounted for by textile yarns, fabrics, made-up articles and related products; $45.4 million of the total reflected large shipments of rice from main- land China via Hong Kong.
29. Exports to Thailand in 1958 were valued at $217 million of which $71 million (33%) was textiles, $18 million base metals, $16 million metal manufactures and $14 million clothing, in general a wider range of goods than is exported to Indonesia.
30. Imports from Indonesia came to $94.7 million of which $76.4 million (80%) was accounted for by mineral fuels, lubricants and related materials. Imports of rattan canes, core and peel were valued at $8.9 million and unrefined beet and cane sugar at $6.8 million.
6.
31. Total imports from Thailand were valued at $160.3 million, of which rice alone was worth $121.3 million. Other imports from Thailand are beef cattle, teakwood, and decorative woods for the furniture industry.
United Kingdom
32. The value of total exports from Hong Kong to the United Kingdom in 1958 was $393 million, thus putting the U.K. at the top of the export list, to which position she has moved steadily, gaining over Malaya, Thailand and Indonesia. Exports to the United Kingdom in 1958 represented 13% of all exports, and $329 million out of the $393 million was accounted for by exports of products wholly or principally of Hong Kong manufacture. Textiles and clothing were the most valuable export items, 66% by value; footwear and other manufactured articles accounted for a further 18%.
33. Imports in 1958 from the United Kingdom fell by $136 million compared with 1957 to $531 million. The principal commodities im- ported are machinery, textiles especially woollens, and base metals and transport equipment; other important imports are plastic moulding materials, medicine and pharmaceutical products, manufactures of metal, and tobacco.
The United States
34. In 1958 the United States stood second on the export list of countries taking Hong Kong manufactures, and third on the total export list; the values were $205.4 million and $326.4 million respec- tively. Both figures represent an amazing jump from 1954 when total exports to the United States were worth only $70 million. The most valuable export is clothing, in 1958 worth $149 million or 46% of all exports to the U.S.A.; next in importance are miscellaneous manufac- tured articles consisting mainly of toys and games, artificial flowers and wicker work articles; rattan furniture and prepared shrimps and oysters are also valuable export items to the United States.
35. The balance of visible trade is in favour of the United States with imports from that country worth $439.6 million in 1958, equal to nearly 10% of the value of total imports into Hong Kong. Major imports in 1958 were: textile fibres, $92.6 million; textile yarns, fabrics, made- up articles and related products, $44.5 million; tobacco and tobacco manufactures, $44.1 million; medicinal and pharmaceutical products, $31.9 million; and non-electrical machinery, $27.9 million.
7
Western Germany
36. Hong Kong's constant search for new markets in which to sell her products has been rewarded with some success in Western Germany, with which country there has developed a growing and mutually advan- tageous trade.
37. Germany had always taken part in Hong Kong's traditional entrepot trade, exchanging chemicals, machinery, and manufactured goods for China produce, but the trade is declining. China's present policy of direct buying and of switching her sources of supply to the Communist bloc countries has had a marked effect on the chemical trade, and imports into Hong Kong have declined considerably. Whereas in 1954 chemicals represented 64% of the value of all imports from Western Germany, in 1958 they represented only 27% and there was a heavy fall in value. In 1958 the total value of imports from Western Germany was $135.2 million and the most important were: machinery, $24.8 million, textile yarn, fabrics, made-up articles and related products, $15.9 million; professional, scientific and controlling instruments, photo- graphic and optical goods, watches and clocks, $15.2 million; and dyeing, tanning, and colouring materials, $12.8 million.
38. The traditional exports from Hong Kong to Western Germany are feathers and downs, bristles, rattan and bamboo canes, cordage and cables, and there has also been a fluctuating demand for animal and vegetable oils, especially teaseed oil. Re-export of China produce is however giving way to exports of Hong Kong made clothing and textile yarns, fabrics, made-up articles and related products. The growth in the values of Hong Kong products exported to Western Germany can be seen from these figures: 1955, $3.1 million; 1956, $8.4 million; 1957, $21.3 million; 1958, $41.6 million. Clothing was the most important item and in 1958 represented over 70% of the whole; bed, table and kitchen linen, foodstuffs and footwear are also exported.
II. ECONOMIC DEVELOPMENTS
GENERAL
39. The comments in the preceding chapter indicate that although the balance of visible trade disclosed the usual deficit, the deficit itself was substantially less, principally because expenditure on imports fell in 1958, while export earnings, in spite of lowered prices for both re- exported and locally manufactured products, declined to a comparatively smaller extent. No estimates of invisible income are available but the figure is believed to be high.
8
40. Domestic prices were stable throughout most of the year, but there was an increase in the cost of almost all foodstuffs, except frozen meat, during the first three months of 1959. In March, the retail price index rose to 130, the highest it has been since December 1953. The index has subsequently fallen to a more normal level.
INDUSTRY
41. During the year industrial expansion seemed to gather momentum and there was evidence of modernization of plant and considerable im- provements in quality, design and production techniques. There was some evidence also of foundations being laid for broadening the industrial base to a limited but healthy degree. The advantages of the Colony as a manufacturing centre are attracting more capital, especially from America, into newer and rather more diverse manufactures, and con- fidence in its stability despite some uncertainties seems to be on the increase. The seeds now being sown will take a year or two to bear fruit.
42. The number of industrial undertakings registered with the Labour Department at the end of March 1959 was 4,860. A strict comparison with the number registered on the same date in 1958 (3,765) is not possible, as the returns now include many small undertakings which do not have to be registered, but yet are known to be in operation. The number of people employed is given as 179,997. There does not seem to have been a substantial rise in industrial employment when allowance is made for the wider scope of the returns but outworkers and handicraft industries are believed to have increased proportionately more than factories proper or workers in them.
43. The supremacy of the clothing industry in the Colony's economy and its peculiarly favourable adaptation to the circumstances of Hong Kong became very marked during the year. The industry has become less reliant on imported cotton piecegoods, as the local textile industry increases the variety, finish, quality and quantity of its products. The industries are complementary, though the future is shadowed to some extent by the defensive reactions of competitors in more developed countries who bring pressure to bear on their Governments to restrict imports in one way or another. These pressures, applied throughout the year in various ways, are a recurrent theme of this report, affecting as they do nearly every branch of the department from time to time.
Federation of Industries
44. Restrictive external pressures were for instance a prime reason for the proposal made by Sir Alexander Grantham in December 1957
9
that industry in Hong Kong must present a united front if it was to survive. He proposed that the best of industry should form itself into some manner of federation within which sectional, racial and conflicting commercial interests could be fused in the common interests of the Colony and of industry as a whole.
45. Although there was opposition from entrenched interests and although even those friendly to the idea doubted its practicability in local circumstances, the representative Committee appointed to consider the proposals reported that it was not only desirable but practicable and suggested means whereby a federation of industries could be given reality. The Committee's report was presented to Government on 20th December, 1958 and was published in April 1959. It recommended that a federation be formed on the basis of individual industrial concerns, represented on an industrial group basis in a smaller general committee, with an executive committee and a secretariat, adequate in number, quality and experience, and sufficiently well paid to attract the right personnel. The Committee also recommended that the proceedings of the federation be bilingual, a recommendation without precedent in local experience.
46.
Government accepted the Committee's recommendations, and, at the time of writing, the Governor has appointed Dr. the Hon. S. N. Chau, C.B.E. to be Chairman and the Hon. J. D. Clague, C.B.E., M.C., to be Deputy Chairman of a Working Party to draft a constitution for a federation of industries, to invite individual factories or firms to be founder members, and generally to bring the federation into being.
Land for Industry
47. A federation is only an institutional framework within which local industry might develop, but the practical problems of industry are immediate and cannot await the creation of a tidier and more effective organization than exists at present. Land and factory development is one such problem. It is gratifying to be able to record that the problems of industrial land seem to have become noticeably nearer solution in the last twelve months. The spade work of the planning sections of the Public Works Department is being given reality; the need for industrial land is fully recognized, a number of new schemes are being examined, there is space for development, and uncertainties of tenure are being resolved. There is still a long way to go, but the corner has been turned. 48. A lesson has been learnt the hard way at Kwun Tong. Local industry does not differ fundamentally from industry elsewhere. It cannot
10
•
be tempted to new areas without the essential social facilities that attract work-people to those areas. Industry itself or speculative financiers cannot or will not undertake the provision of housing and ancillary services; there is a minimum that must be done by Government in this respect, but once done, industry will generate both its own development and the essential social concomitants.
Financing of Industry
49. Certain sections of industry have complained from time to time that there has been difficulty in securing adeqate finance for develop- ment. The burden of the complaint has always been that reputable merchant banks are not prepared to go outside the traditional lines of export finance in which they are well versed, and industry has therefore had to seek commercial loans at high rates of interest from more specu- lative sources or to rely on loans from exporters who are in turn dependent on the banks. There is some truth in the complaint, but a large part of industry itself is not of a kind that would merit loans from reputable banks.
50. A number of suggestions for financing industry have been put forward from time to time such as the establishment of a Government financed Development Corporation, without really getting at the heart of the problem, which is one of mutual confidence between borrowers and lenders and faith in the future of the Colony itself and of its industries in a highly competitive world. In January, Government, recognizing the existence of the problem, announced the appointment of a Committee to study the possibility of establishing an Industrial Development Bank. During the year there was a noticeably more favour- able trend among banks towards lending money more readily for industrial development, especially where existing factories wished to expand or to modernize themselves. It was still difficult to secure loans for new industries.
Fuel Costs
51. The Chinese Manufacturers' Association in particular has for several years campaigned against the alleged high cost of electric power, and in particular against the special surcharge which has been levied since the cost of fuel rose substantially in 1956. The surcharge was 12% during the year, but was reduced to 9% as from 1st April, 1959. Fuel charges are an important element in local manufacturing costs, the price of electric power being comparatively high because all fuel must be imported.
11
Water Supplies
52. Water restrictions are still a source of inconvenience and annoyance for many sections of industry, but the opening of the Tai Lam Chung reservoir has provided some easing of the situation. The prospect of an increased supply from a new reservoir on Lantao has been of course welcomed by industrialists.
Merchandise Marks and Designs
53. Hong Kong's industry has not reached the stage where original design is regarded as practicable. It is still in its infancy and there is little to stimulate modern production efficiency, that is associated with manufacture for stock of large quantities of goods of original design, the customer being led to accept them not only because of their intrinsic merit in comparison with competing goods, but by the use of advanced and expensive advertising techniques. The background stimulus for original design is therefore missing and manufacturers, who most frequently turn out goods to specific order, tend to become victims of charges of stealing designs. Although in a proportion of cases investigated there is a valid charge, in most cases it is found that there has been no infringement and no deliberate intent to deceive. Charges of design pilferage were less numerous last year, perhaps because more overseas manufacturers are taking the trouble to re- register in Hong Kong designs which they have already registered in the United Kingdom.
54. Original registration of trade marks exists in Hong Kong and comparatively few infringements have come to light. There have also been fewer infringements of the Colony's merchandise marks legislation. The Trade and Industry Advisory Committee considered the possibility of having a design registry and appropriate legislation in Hong Kong, but ultimately advised against it on practical grounds.
Industrial Efficiency
55. The concept of training management or staff as a method of increasing the productivity of industrial enterprises has not yet com- mended itself to the greater part of local industry. This is perhaps not surprising when labour and unskilled management is plentiful and therefore cheap, when production is to order rather than for stock, and when management looks to immediate returns. However, there is some evidence of a change of heart, and the department, in conjunction with the Labour and Education Departments, has been considering ways and means of accelerating it.
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56. There is a stronger urge towards improving the training of technicians the end results of which are easier to visualize and the technical training organized by the Education Department is appreciated. Unfortunately, graduate technicians are not employed in the numbers that are turned out or to the full extent of their abilities.
COMMERCE
57. The principal events affecting the commercial life of the Colony during the year were reactions to its success in marketing the products of its textile and clothing industries in highly developed countries. The indications of storms ahead have stirred the merchant community and brought home to them forcibly the great reliance of the Colony on its industry. Another development worthy of particular notice has been the anxiety felt at Chinese mainland penetration of traditional overseas markets and of the domestic market for light industrial goods and raw materials.
58. On the whole, however, it has not been a bad year despite a decline in the overall value of trade. The port has been busy and ware- house business has improved. Although profit margins have fallen, turn-over has been rapid and the overstocking which characterized the previous year was absent in 1958.
Negotiations with the U.K. Cotton Board
59. Continued agitations in Lancashire for the limitation of imports of duty-free cotton piecegoods and made-up goods into the United Kingdom from Hong Kong, India and Pakistan resulted in the opening of negotiations between the U.K. Cotton Board and interested parties in Hong Kong. These negotiations are described in Chapter IV.
Cotton Textile Agreement with Burma
60. An agreement was concluded in February with the Government of the Union of Burma for the supply of Hong Kong cotton textiles and yarn to Burma, partially against payment in sterling and partially against raw cotton to be delivered to Hong Kong from the United States under the U.S. Public Law 480 Programme. The total programme, within which Hong Kong may compete for a share, amounts to US$12.8 million in terms of value of the raw cotton content of textiles and yarn to be supplied during the tenure of the agreement.
61. The Financial Branch of the Colonial Secretariat was respon- sible for the spade work in this very useful piece of trade promotion,
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as it was for the similar agreement with Indonesia which operated in 1957. Government has appointed Henningsen & Co. Ltd. to be its agents for the purpose of the agreement.
Mainland China's Economic Offensive
62. The mounting scale and variety of mainland China's economic offensive gave rise to concern among merchants and manufacturers during the summer and autumn of 1958, and there were many references to the matter in press and agency reports. Reports of alleged dumping in the Hong Kong market began to appear in May 1958. In the same month China severed direct trade relations with Japan and seemed to have immediately redoubled her efforts to sell in South East Asian markets. There were persistent reports of Chinese goods under-cutting those of Japan.
63. Price seemed in general no object, to the extent at least of the element of domestic costs, particularly where the apparent objective was to capture a particular market. There was however insufficient evidence as to costs and prices in China to sustain definite charges of dumping in the technical sense.
64. A wide range of light manufactured goods from the mainland has been available in the Colony for some time but in relatively small quantities and of a quality on the whole low. In 1958 such goods appeared in local shops in greater quantities, and there was an increase in the number of shops specially set up to retail mainland goods. The effect may have been to reduce to some extent the sale of similar Japanese goods, but there was little impact on domestic industry which, with a few notable exceptions like rubber shoes, enamelware, and vacuum flasks, does not have a large sale in the local market.
65. At the beginning of 1959, exports from the mainland declined noticeably, the reason generally accepted being the dislocation of the channels of distribution in China itself which is known to have been widespread and which does not as yet appear to have been fully rectified.
European Free Trade Area
66. The failure of the Free Trade Area negotiations attracted little notice in Hong Kong, perhaps because the implications of the success or failure for the Colony's trade were not fully recognized. It is impossible at this juncture to forecast with any certainty what may be the future effect of the European Common Market on the Colony's trade with the six countries concerned and with French overseas terri-
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tories, but it seems likely that it will be increasingly difficult to retain the gains already made, for instance, in the export trade with Germany.
Restrictions on Trade with Other Countries
67. The more important changes in tariffs or quotas in countries to which the Colony exports its goods are recorded in Chapter IV. Some of them appear to be deliberately aimed at Hong Kong and to stem from fear of the impact of imports from the Colony on the domestic industries of the countries concerned. There is an undoubted increase in the number and variety of such restrictions, some of them being of con- siderable subtlety and carefully framed to take advantage of technical deficiencies in the provisions of the G.A.T.T.
68. Particularly important in view of the great development in the export of clothing to the United States during the latter part of 1958 is the clamour by American garment manufacturers for restriction of imports from Hong Kong, which led to the visit of Mr. H. Kearns, Assistant Secretary for International Affairs, United States Department of Commerce.
69. Mr. Kearns had meetings with representatives of the Hong Kong General Chamber of Commerce, the Chinese Manufacturers' Associa- tion and the Garment Manufacturers' Union at which he pointed out that the concentration of Hong Kong textile imports into the U.S.A. within a few limited items was creating serious difficulties for United States manufacturers.
70. While appreciating the opportunity he had had to learn of Hong Kong's problems at first hand, he made it clear, in a public announce- ment just before his departure, that he had not come to negotiate but to advise businessmen and industrialists what they should do in the common interests of both countries. He said that he thought that it would be in the Colony's best interests to put some voluntary limit on its textile exports and at the same time diversify those exports. Reactions to these suggestions have been varied and the problem is under con- sideration by commercial and industrial interests in Hong Kong.
Reactions to Overseas Restrictions
71. The dual nature of the Colony's economy, industrial and entrepot, tends to produce contradictory reactions towards the threat of overseas restrictions among merchants and manufacturers. This was particularly marked in the early stages of the textile negotiations with the U.K. Cotton Board, which were further complicated by the conflict- ing interests of factions within the ranks of manufacturers themselves
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and which were never wholly resolved. Nevertheless, there is increasing awareness of the necessity for all to stand together where the Colony's trade is affected and to give priority to the claims of industry rather than the import or entrepot trade.
72. The Hong Kong General Chamber of Commerce and the Hong Kong Exporters Association have realized the importance of acquiring the technique of combatting potential restrictions in their early stages by any means in their power, even though there may be little hope of success. On a number of occasions they have made joint representations to tariff boards in overseas territories or have urged importers' associa- tions to put forward representations. On one occasion, the Chinese Manufacturers' Association took steps to safeguard the interests of rubber footwear manufacturers where an impending technical change in the U.S. tariff threatened to have an adverse effect; they were able to secure some softening of the immediate impact.
73. The General Chamber has gone further and sponsored a venture into the field of public relations by appointing a firm of London public relations consultants for one year from 1st August 1958 to handle publicity for Hong Kong in the United Kingdom in close co-operation with the Hong Kong Sub-Committee of the China Association. The work of the consultants is directed by a Joint Committee of the Chamber, the Cotton Spinners Association, the Chinese Manufacturers' Associa- tion and the Hong Kong Exporters Association, all of which have made financial contributions.
74. Twenty thousand copies of a small factual booklet prepared by the Chamber, entitled 'Hong Kong and its Textile Industry', were distributed in the United Kingdom in September, at the time when negotiations with the Cotton Board were about to start. The booklet, which attracted favourable comment in the British Press, recorded the facts of the situation soberly and clearly.
75. In March 1959 the Chamber also laid before Government pro- posals for a Government financed public relations service in the United States. The proposals are under consideration.
CONCLUSION
76. Some major developments in industry and trade and associated matters have been briefly noted in Chapters I and II, but many less striking, though cumulatively important, issues have not been touched upon. In conclusion it may be said that the last twelve months has been
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characterized by greater public awareness and understanding of the issues at stake for Hong Kong's trade and industry, and of the extent of their importance to the economy of the Colony. It was noteworthy that the debate on the budget for 1959/60 was concerned with these matters to an unusual extent and that His Excellency the Governor chose to dwell on them in his budget address.
III. GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES
GENERAL
77. The distribution of the work of the department among ten branches and three divisions has worked well during the year; respon- sibilities have been clearer and administration to that extent simplified. There were comparatively few changes in the directorate, which has made for better cohesion and a more consistent determination and application of policy, which has benefited the public. The work of each branch of the department is dealt with in the sections that follow. Organization of the department is shown in Table 7.
OVERSEAS TRADE RELATIONS BRANCH
78. This branch, which is as yet only in embryo, is the responsibility of an Administrative Officer. Apart from keeping a watch on changes or possible changes in tariffs, quotas, etc. in overseas countries which affect Hong Kong, he has been responsible for dealing with trade complaints, especially where they concern allegations of plagiarization of design or patents or breaches of the Merchandise Marks Ordinance. The work of the branch is elaborated in Chapter IV.
TRADE PROMOTION BRANCH
79. The two major projects undertaken by the branch during the year included participation in the Melbourne Trade Fair and organi- zation of the three-man Commercial Mission to Caribbean Territories. As usual, a great number of trade inquiries were dealt with and the Publications Section was responsible for the monthly Trade Bulletin. Administration of the branch is in the hands of a Trade Officer, who was personally responsible for the 1959 edition of the Commerce, Industry and Finance Directory (which was published on 8th June, 1959) except for the text which was compiled by the Assistant Director (Administration).
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80. The Colony's participation in the Melbourne Trade Fair was undoubtedly a success aesthetically and certainly attracted great interest in comparison with other overseas territorial exhibits. There are reason- able grounds to believe it will in due course enhance the Colony's export trade.
81. The Commercial Mission to the Caribbean entailed much re- search before it could be launched. It went through without the slightest hitch, indeed its strict adherence to a time-table was a source of surprise in some of the countries visited. The report of the Mission was published in March, a limited number of copies being made available to the public at $5 a copy. This mission, the first of its kind undertaken by the depart- ment, can be regarded as a success from the organizational aspect. Whether it will be a commercial success depends on the follow-up action taken by merchants and manufacturers.
OVERSEAS OFFICES
82. The London Office has had one of the busiest years in its history. It has been deeply embroiled in Lancashire's efforts to reduce imports of textiles from Hong Kong. Much of the Director's time is taken up in refutation of the frequent wild statements that emanate from the few sections of British industry that are affected adversely by the success of the Colony's products in the United Kingdom.
83. Increased trade with Britain has also brought more problems connected with claims to Commonwealth preference. Close liaison with H.M. Customs on the one hand and with the department on the other has been maintained.
84. The Tokyo Office has had an uneventful year, but continues its work in furtherance of the Colony's trade, more especially in facilitating the ingress of Japanese Nationals to Hong Kong and the Colony's merchants to Japan.
INDUSTRY AND CERTIFICATION BRANCH
85. The need to concentrate on preserving the integrity of Govern- ment certificates of origin and Commonwealth preference certificates has perforce continued to militate against development of the industry side of this branch which is administered by a Trade Officer, two Assistant Trade Officers, two junior Executive Officers, and a section of the Preventive Service. In the coming year Industry and Certification will be separated, with a Senior Trade Officer responsible for both during the initial stages of collecting industrial production statistics.
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86. It was a very busy year on the certification side, with much consolidation, especially of Commonwealth preference work. Plans have also been laid for a complete re-registration of factories for certification purposes. The expansion of exports to the United States was reflected in a great increase in the number of comprehensive certificates issued. 87. During the year, great efforts have been made to streamline internal issue procedures without sacrificing their reliability, and the staff of the Industry Section of the Preventive Service has been brought up to authorized strength.
88. The procedure for issue of Comprehensive certificates for frozen prawns was found to have loopholes, and was made substantially more rigorous, but not before a conspiracy (which included corruption of departmental staff) to substitute mainland prawns for those of local origin was uncovered. The three instigators have subsequently been given stiff prison sentences.
TRADE LICENSING BRANCH
89. Further relaxations in trade controls arose from a revision in August 1958 of the list of strategic goods embargoed for export to the Sino-Soviet bloc. These relaxations were, however, offset by the introduc- tion of export licensing for cotton textiles exported to the United Kingdom, in consequence of the undertaking given by the local textile industry to limit exports to the United Kingdom.
SUPPLIES BRANCH
90. The Supplies Branch continued to maintain records of stocks of coal, firewood, rice, meat, and certain other essential foodstuffs held commercially. Rice import policy remained unchanged but it was necessary to control the importation of firewood at the beginning of 1959 in view of supply difficulties. Certain stocks of food and fuel continued to be maintained by the Department for emergency purposes.
DUTIABLE COMMODITIES BRANCH
91. Revenue from duties continued to increase in respect of every individual item. Toilet preparations and proprietary medicines were removed from the list of dutiable commodities in February 1959, and changes were made concurrently in the rates of duty on tobacco and certain wines.
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92. The introduction of mechanical accounting in the Dutiable Commodities Branch with effect from 1st April, 1958 resulted in increased efficiency in revenue collection.
STATISTICAL BRANCH
93. The year has been markedly busy for the Statistical Branch, first of all preparing for the installation of machines for tabulating and analysing the trade statistics and, as from January, transferring their preparation to the machines. There were inevitable teething troubles, the origin of which had been determined by the end of the year; it had not however proved possible to catch up on the earlier delays, though it is confidently expected that they will be eliminated in the course of the next few months.
94. The new trade statistics are now issued in more detail than hitherto, distinguishing in full exports from re-exports and with a more elaborate classification both of countries and commodities. Photo-offset printing does not produce the figure in so readable a form as heretofore, but this is a price that has had to be paid for the more detailed break- down, practicable only by mechanized methods.
THE PREVENTIVE SERVICE
95. The activities of the Preventive Service are outlined in Chapter XII. A re-organization of the junior section of the Service took place during the year, resulting in a substantial intake of new recruits from H.M. Dockyard and military establishments in the Colony.
96. Discipline and morale remained at a high level and notable successes were again achieved by all sections of the Preventive Service. 97. Control over narcotics in co-operation with the Police continued to be a major activity.
ACCOUNTS AND ADMINISTRATION BRANCH
98. The completion of the authorized establishment of executive officers has made a great difference to the orderly administration of the department, removing a substantial burden of routine establishment and accounting work from the purview of the Assistant Director (Administra- tion), thus enabling him to take a more active part in the real work of the department and to permit him to be prepared to deputize for the Director when occasion demands.
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99. Revenue collected by the department from all sources was greater than ever before, $115.9 million (or if revenue from postage stamps on applications for certificates of origin is added, $117.5 million) as against $110.8 million in 1957/58. A substantial segment of the increase is due to the efforts of the staff of the Dutiable Commodities Branch, which is now administered by permanent departmental staff. Revenue collected by the department was a little more than one-sixth of the total estimated revenue for 1958/59.
100. The increase in staff from 638 to 785 is largely attributable to the addition of Revenue Officers as part of a major effort to reduce the traffic in narcotics through the port. To a lesser extent, it is attributable to desirable improvement in general administration and certification of origin.
101. The great improvement in working conditions resulting from additional space, redecoration, and rationalization of accommodation made possible by the departure of the Labour Department and Business Registration Office in 1957, has paid handsome dividends in the shape of increased efficiency. The only set back has been the failure of the Clerical Canteen, designed to serve all four departments remaining in the building. The future of the canteen is under consideration.
102. The Revenue Inspectors' Mess has been an unqualified success. New and unexpected problems have however arisen from changes in the organization of the Preventive Service implemented from October on- wards, which has resulted in an increase of the inspectorate from 98 to 205 posts, offset by a comparatively small decrease, from 281 to 268, in the numbers of the Revenue Officers. Lockers, showers and wash basins. hitherto barely adequate, are now inadeqate; a possible solution is conversion of the unsuccessful clerical canteen to changing rooms, a project now being examined.
103. In the absence of a statutory Preventive Service Welfare Fund, a small provisional fund has been built up from various sources, just sufficient to meet the immediate calls of the Revenue Officers' Canteen. A little money has also been accumulated to eke out contributions towards Christmas festivities for the staff as a whole.
LEGISLATION
104. There was no major legislation affecting the department enacted during the year. Methyl alcohol became dutiable primarily as a means of controlling its import and distribution. Minor amendments were made
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to regulations relating to merchandise marks. Firewood was added to the list of reserved commodities. Cotton manufactures consigned to the U.K. with certain exceptions, principally yarn, were added to the list of prohibited exports, to permit the department to operate the undertaking to limit exports given to the U.K. Cotton Board by the local textile industry. Toilet preparations and proprietary medicines have been removed from the list of dutiable commodities.
105. Substantial progress has been made departmentally on the revision of the Dutiable Commodities Ordinance, and some further work has been done on the proposed Preventive Service bill.
THE TRADE AND INDUSTRY ADVISORY BOARD
106. This chapter would not be complete without mention of the work of the Trade and Industry Advisory Committee, which has advised the Director for the last five years on many matters, departmental and external. The membership of the Committee was widened as from August, when the Colonial Secretary appointed the following four gentlemen: Messrs. C. C. Lee, J. S. Lee, R. G. L. Oliphant, and S. H. Sung, B.Sc., M.I.Mech.E.
107. On 1st January, 1959, the Committee was reconstituted as the Trade and Industry Advisory Board, appointments to which are made by His Excellency the Governor and notified in the Government Gazette. The terms of reference of the Board are: To advise the Director of Commerce and Industry on all matters other than labour which affect the Colony's trade and industry.
108. Membership of the reconstituted Board is as follows:
The Director of Commerce and Industry (Chairman ex officio), Messrs. G. M. Goldsack, J.P., S. S. Gordon, L. P. Kwok, J.P., C. C. Lee, J. S. Lee, Dhun Ruttonjee, O.B.E., J.P., G. O. W. Stewart, J.P., S. H. Sung, B.Sc., M.I.Mech. E., U Tat Chee, O.B.E., J.P.
109. The committee met ten times and the board three times during the period under review. It was consulted on a wide range of subjects affecting the Colony's trade and industry and departmental policy and executive action. They included registration of designs, a revised classifi- cation of items in the trade statistics and a new format for import and export declarations, description of goods consigned to the Central African Federation in relation to certification of origin, certification of origin for embroidered goods, 'dumping' of Chinese products, policy in
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regard to claims to Commonwealth preference for imported piecegoods finished in the Colony, establishment of a Hong Kong office in Sydney and trade representation overseas generally, regulation of weights and measures, and the administration of the annual quota on cotton textile exports to the United Kingdom.
110. The committee or board gave valuable advice on the depart- mental programme of expenditure on trade promotion; the selection of trade fairs to attend, the exhibits to be sent, stand designs, and composi- tion of delegations; missions to other territories and matters connected therewith; format, printing, tenders and advertising rates in the Trade Bulletin and C.I.F. Directory.
111. Once again the department and the merchant and industrial community is indebted to members for devoting so much of their time and attention to the business of the committee or board. They have been a valued means of liaison and their wise and helpful advice on a wide variety of topics is gratefully acknowledged.
PUBLIC RELATIONS
112. The department continued to maintain effective liaison with Trade Commissioners and foreign Consular officials in the Colony. Close co-operation was maintained also with the Hong Kong General Chamber of Commerce, the Chinese Manufacturers' Association, and other trade and industrial organizations. Local merchants and manu- facturers consulted the department frequently on an extensive range of subjects and the department itself sought the advice and assistance of many individuals during the course of the year. The co-operation of these organizations and individuals is much appreciated.
IV. OVERSEAS TRADE RELATIONS BRANCH
GENERAL
113. As Hong Kong's industry continues to expand and develop existing and new markets for its exports, the impact of its comparatively low priced products has on a number of occasions drawn forth unfavour- able reactions in the form of increased tariffs, import quotas, other less obvious restrictions, and even discriminatory measures specifically aimed against Hong Kong. It is regrettable that some of the more highly developed Commonwealth countries have taken the lead in adopting restrictive action against Hong Kong, despite the fact that it is now
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universally accepted that there is a need to provide markets for the cheaper manufactures of the under-developed countries if the standards of living of their people are to be effectively raised. "Trade and not aid' is generally recognized as being a more effective and long term stimulant to any country's economy.
114. The Colony, with its tradition of free trade and lack of overseas representation, was neither accustomed to nor well equipped, officially or commercially, to deal with restrictive activities overseas on the scale to which they had progressed by the end of 1956. In 1957 therefore, to help the Assistant Director in charge of the Development Division, an additional Cadet Officer was specially assigned to keeping abreast of overseas trade relations and to developing the techniques of rapid, forceful, and legitimate official and commercial counteraction where danger to the Colony's trade becomes apparent. By 1958, the Overseas Trade Relations Branch was well launched and had proved its value; its staff, now few in number, will be substantially augmented in 1959.
115. The following is an account of the action taken by certain overseas authorities to discourage or limit the importation of Hong Kong goods and of the reaction of the department and local commerce and industry to such attempts.
UNITED KINGDOM
116. Lancashire's continued opposition to the unrestricted imports into the United Kingdom of duty free cotton and made-up goods from Hong Kong, referred to in last year's report, culminated in an explora- tory visit in March 1958 by Sir Frank Lee, G.C.M.G., K.C.B., Permanent Secretary to the Board of Trade. This paved the way for the despatch of a delegation from the Cotton Board, led by Lord Rochdale, M.C., Chairman of the Board which arrived in the Colony on 23rd September, and began the industry-to-industry negotiations with an eleven man ad hoc Hong Kong Textiles Negotiating Committee, set up with the help of the department, and headed by the Hon. J. D. Clague, C.B.E., M.C., T.D. The arrival of the Mission had been preceded by intensive depart- mental activity first of all in co-operation with the London Office in ascertaining the pattern of textile exports to the U.K., and secondly, in organizing a committee of textile industrialists and exporters which would be representative of and acceptable to the various sections of the industry, and yet not too large to be manageable by its chairman.
117. The Cotton Board delegation eventually left Hong Kong on 9th October, after securing agreement in principle that exports of cotton
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manufactures to the United Kingdom should be limited for a period of three years, but the terms of a voluntary undertaking to that effect by the local industry were not finally cleared until 24th December. In brief the undertaking, which came into force on 1st February, 1959, provides that exports to the United Kingdom of Hong Kong manufactured cotton garments and piecegoods, whether grey or finished, shall be subject to a ceiling of approximately 164 million square yards annually for a period of three years. A limited range of cotton goods is outside the ceiling: these include cotton yarns, garments made from United Kingdom cloth, and any goods imported into the United Kingdom for re-export with or without processing. The department was requested by the Negotiating Committee to undertake the 'policing' of the voluntary undertaking, which entailed the passage of legislation to permit export licensing of cotton manufactures exported to the United Kingdom.
118. It is to be noted that the undertaking given by the Hong Kong textile industry was independent of any agreement by the industries of India or Pakistan. These latter had stipulated that any undertaking on their part would be conditional on a similar undertaking being given by Hong Kong. At the time of writing, almost six months after the signature of the Hong Kong undertaking, the U.K. Cotton Board had not reached an agreement with either country.
119. The local industrial and commercial community reacted to the undertaking with mixed feeling but found some satisfaction and consola- tion in the statement made by Her Majesty's Government to the effect that is was not their intention to sponsor similar arrangements in respect of other exports from Hong Kong, and that they would continue to oppose vigorously the unilateral imposition of restrictions by other countries on the import of Hong Kong goods.
FRANCE AND HER OVERSEAS TERRITORIES
120. On 31st October, the French Ministry of Economic Affairs, without prior warning, announced the establishment of a quota for the importation of Hong Kong goods into France and French West Africa equal to 50% of the value of such imports in 1957. The French authorities justified this move on the grounds of affording protection to the local industry in West Africa and by alleging dumping and the possible export of mainland Chinese textiles under the guise of Hong Kong goods.
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121. As from 1st January, 1959, the import of a variety of commodities into France has been liberalized to O.E.E.C. countries. However, most manufactured textiles from Hong Kong are excluded from this benefit, although Hong Kong is entitled as an overseas dependent territory of the United Kingdom to the benefits of any liberalization.
122. Under the stress of rapid reaction from Government and the commercial community in Hong Kong, strong and urgent representations were made by Her Majesty's Government against such discriminatory action towards the Colony, and discussions between representatives of the British and the French Governments were arranged. A representative from the Hong Kong Government subsequently participated in these discussions.
UNITED STATES OF AMERICA
123. Concern voiced in the United States during the past two years over increasing imports of a rather small range of wearing apparel from Hong Kong, mainly shirts, blouses, pyjamas, brassieres and sports clothes, culminated in a visit to the Colony in February 1959 of Mr. Henry Kearns, an Assistant Secretary of Commerce for International Affairs, to explore informally the possibility of finding a solution to the problem. The outcome of his visit is described in paragraphs 69 and 70.
UNION OF SOUTH AFRICA
124. In August 1958, as a direct result of an amendment to the South African Customs Act, 1955, (referred to in last year's report) providing for unilateral changes in the territorial value content of certain imported articles, the Union Government decreed that 'printed woven piecegoods containing 50% or more by weight of cotton or of rayon (excluding indigo blue discharge prints) and the f.o.b. value of which did not exceed eleven shillings per lb. weight, might claim origin in a territory, to which minimum or intermediate rates of duty applied, only if 75% (hitherto 25%) of the factory or works cost was represented by materials produced or labour performed in that territory'. Although the requirement regarding printed cottons was revised to 70% in February 1959, it still has the effect of excluding Hong Kong printed cottons from qualifying for the m.f.n. rate. This measure is discrimina- tory in that not only does it favour the high cost producer against the low cost producer but also the low cost producer who has direct access
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to raw cotton in his own country as against one who does not. A protest was lodged through the appropriate channels.
125. During the year, applications for increased duties on certain types of cotton piece-goods, footwear, hats and caps, socks, and plastic buttons were received by the Union Board of Trade and Industries. As Hong Kong has a considerable interest in trade in these commodities, representations against them were submitted to the Union Board jointly by the Hong Kong General Chamber of Commerce and the Hong Kong Exporters' Association.
FEDERATION OF RHODESIA AND NYASALAND
126. In February 1959, the percentage single country content required to claim preference for non-printed piece-goods was amended to 50% from 30%. At the same time, additional specific duties on adult clothing were imposed.
127. Repeated measures by the Federation in the past few years, such as the introduction of specific duties and changes in origin rules, have undoubtedly resulted in a steady decline in the Colony's trade with the Federation, which has, perhaps fortunately, never been large though there were fair prospects some years ago of its increasing.
THE NETHERLANDS
128. In October 1958 reports were received that the issue of import licences for gloves made in Hong Kong had been suspended by the Netherlands Ministry of Economic Affairs. Official representations were made to the Netherlands Government, as a result of which the temporary suspension was removed in November. It was, however, re-imposed in January 1959.
SWITZERLAND
129. Again in October it was reported from Zurich that the Swiss customs authorities had limited the duty-free import of grey cloth from Hong Kong to that which, after finishing treatment, would not be resold to West European and North American countries. This action appears to have arisen from a misunderstanding by the Swiss Government of Hong Kong's relationship with the Organization for European Economic Co-operation and the right of access of its goods to the United States and Canada. The United Kingdom Government was requested to make appropriate representations to the Swiss Government, the results of which are awaited.
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CANADA
130. In March 1958, the Canadian Tariff Board held a public hearing in connexion with certain representations to introduce alternative specific import duties on rubber footwear, which, if adopted, would have had the effect of raising the duty on Hong Kong products very substantially. The Hong Kong General Chamber of Commerce and the Hong Kong Exporters' Association, with the assistance of the department, prepared a joint brief to the Board, setting forth reasons against the adoption of these changes.
131. Towards the end of the year, the Board recommended to the Federal Government that the tariff rates on imported rubber footwear should be left unchanged.
FEDERAL REPUBLIC OF GERMANY
132. In 1954, German imports of rubber footwear were completely liberalized for O.E.E.C. countries, but Hong Kong was specifically excluded. At the beginning of 1956, a quota was imposed on Hong Kong and non-O.E.E.C. countries. Since 1957 a separate quota has been opened for Hong Kong at a fairly reasonable level, but representations have again been made through the appropriate channels to have this discriminatory restriction against Hong Kong removed or to have the quota further increased in the light of increased demand.
COMMONWEALTH OF AUSTRALIA
133. Towards the end of 1958, Australia initiated action, under G.A.T.T., to re-negotiate the rate of duty on buttons, of which Hong Kong was a principal supplier. Negotiations were carried out by the United Kingdom Government on behalf of Hong Kong and resulted in an increase in the m.f.n. duty on buttons. On the other hand, the Colony benefited by a reduction in the m.f.n. rate of duty on vacuum flasks, jugs, cans and similar vacuum containers.
134. It was announced in December 1958, that the Australian Tariff Board would inquire whether assistance should be accorded to the domestic footwear industry. This inquiry was prompted by a recommen- dation of the Advisory Authority under the Japanese Trade Agreement. As Hong Kong has a substantial interest in the trade, representations were submitted to the Board jointly by the Hong Kong General Chamber of Commerce and the Hong Kong Exporters' Association, with the assistance of the department, setting out Hong Kong's case against any
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increase in the protective tariff. A global quota on the imports of shoes equal to 100% of imports in 1956/57 was imposed on 1st April, 1959 pending the result of the Tariff Inquiry which was to commence in May.
NEW ZEALAND
135. Negotiations for the revision of the United Kingdom-New Zealand Trade Agreement of 1932 were completed in September 1958, when it was announced that agreement in principle had been reached. The heads of agreement between the two Governments were signed on 25th November, 1958.
136.
As regards the interests of the British dependent territories, the New Zealand Government has undertaken that it will, on a basis of reciprocity, maintain in respect of these territories, the tariff preference accorded under the Ottawa Agreement of 1932, and any other tariff preference accorded for the time being to the United Kingdom. However, the New Zealand Government is proposing to hold further discussions, regarding new reciprocal tariff arrangements, with the United Kingdom Government in consultation with the governments of the dependent territories concerned.
137. As any changes in New Zealand's preferential tariff for British dependent territories would affect Hong Kong, the position is being most carefully watched.
BRITISH EAST AFRICA
138. Import duties on rubber footwear, piecegoods and certain types of garments were increased in the British East African territories from May 1958. Correspondence with the Government of Uganda revealed that while these increases were designed principally to raise additional revenue, they were also imposed with a view to protecting the nascent domestic industry. The effects of these changes have been closely watched by the department and it is gratifying to note that no decline in trade has resulted.
THE EUROPEAN COMMON MARKET AND THE GENERAL AGREEMENT ON
TARIFFS AND TRADE
139. Consultations were held in February 1959, between countries participating in the G.A.T.T. and the six countries forming the European Common Market (France, Germany, Italy, Netherlands, Belgium and Luxembourg) regarding the effects of the association of the latter's
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overseas territories with the Common Market on the trade in certain primary products. The import (under preferential treatment) of these products from the overseas territories into the Common Market is likely to cause damage to other traditional suppliers. The department has followed these consultations with interest and concern, as the attitude of the Six in the present consultations will serve as a pointer to future consultations on trade in which Hong Kong has a direct interest.
GENERAL
140. The preceding paragraphs illustrate some of the problems confronting Hong Kong's commerce and industry which, in order to survive, must strive to maintain its present markets and to seek and develop new ones. The department assists in these endeavours by publishing information on overseas developments, by rendering advice and by instituting action at a government level, when applicable.
COMMERCIAL COMPLAINTS AND DISPUTES
141. The department assists in every way possible within its power to settle any trade complaints or disputes involving parties overseas which are brought to its notice. These usually relate to claims made in connexion with goods which do not comply with specifications, which are short-shipped, or damaged in transit, or which are delivered but not fully paid for, etc. When the department's intervention fails to bring a complaint or dispute to an amicable settlement, there is no alternative but to advise the parties concerned to resort to civil proceedings.
142. Statutory provision relating to arbitration as a means of settling commercial disputes is set out in Order XXV of the code of Civil Procedure and Rules of Court (pages 184 to 192 of volume VII of the Laws of Hong Kong, 1950 edition) but the Hong Kong General Cham- ber of Commerce also has facilities to settle commercial disputes by arbitration if called upon to do so, and rules and bye-laws for that purpose have been drawn up by the Chamber. Similar provisions are incorporated in the articles of the Hong Kong Exporters' Association.
COMPLAINTS UNDER THE MERCHANDISE MARKS ORDINANCE
143. Under the powers conferred by the Merchandise Marks Ordin- ance, Cap. 41, the department assists, where applicable and justifiable, any complainant in taking civil action against an offending party by seizing or detaining any goods in relation to which an offence under the Ordinance is believed to have been committed.
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144. Official prosecutions are undertaken only in cases which appear to affect the general interests of the Colony, or of a section of the community, or of a trade. None were undertaken during the year.
OFFICIAL EXCHANGE
145. The department continued to advise Government on matters affecting the allocation of official U.S. dollar exchange for the import of certain raw materials and commodities from the dollar area.
V. TRADE PROMOTION BRANCH
LOCAL EXHIBITIONS
146. The Sixteenth Exhibition of Hong Kong products was arranged by the Chinese Manufacturers' Association, and as usual the department assisted with the administrative arrangements. His Excellency the Governor, Sir Robert Black, K.C.M.G., O.B.E., opened the Exhibition on 4th December, 1958, and it lasted for one month. In the absence of any other suitable site, the Exhibition was once again held in Kowloon on the same site as the Fifteenth Exhibition. In spite of additional space gained by encroaching on an adjoining playground for the area required for the opening ceremony, the exhibition was still overcrowded. Many improvements in the design and packing of products were evident.
Melbourne
OVERSEAS ACTIVITIES
147. Hong Kong participated on a Colony basis in only one trade fair during the year. This was the Melbourne International Trade Fair (26th February to 14th March, 1959). A stand area of 2,000 sq. feet was rented, and a prestige display of local products aroused considerable interest amongst buyers and public alike. Over 400 business inquiries were received by the delegates and forwarded to the department for distribution.
148. The sketch design for the Hong Kong stand was prepared in the Colony, and grateful acknowledgment is made to Professor Gregory and his architectural students at the University of Hong Kong for their considerable efforts in this respect.
149. The official delegation was led by Mr. Dhun Ruttonjee, O.B.E., J.P., with Mr. J. S. Lee as deputy leader. Government delegates were Mr. W. E. Manson and Miss Frances Chan of the department, and other
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delegates were Mr. Joseph Law, Mr. CHA Chi Ming, and Miss Esther Soong. Messrs. William Ling and G. T. Chang, residents of Melbourne with close connexions in Hong Kong, earned the gratitude of all concerned for their untiring personal efforts to ensure the success of the Hong Kong exhibit.
150. The full benefits gained from participating in this Trade Fair will not be obvious for some time to come, but early reactions indicate that it was an undoubted success from which a considerable increase in trade may be expected, notwithstanding Australian import controls.
Central America
151. The other principal venture in trade promotion during the year was a three man Commercial Mission, led by the Hon. Kwok Chan, O.B.E., which visited Central American and neighbouring countries during November and December, 1958. The other members of the Mission were Mr. P. V. Botelho, whose knowledge of Hong Kong trade and command of fluent Spanish were most valuable, and Mr. T. D. Sorby, Assistant Director of the department. The countries visited were Cuba, Haiti, the Dominican Republic, Venezuela, Colombia, Panama, Nicaragua, El Salvador, Honduras, Guatemala, Trinidad, Jamaica, and British Guiana. The purpose of the Mission was to investigate the possibilities of expanding trade with the countries visited, to build up goodwill for Hong Kong, and to correct possible misunderstandings about the Colony in official and business quarters.
152. The very considerable spade work needed to launch this Mission, the first of its kind undertaken by the department, was entirely undertaken by the Trade Promotion Branch, which had first mooted the project in 1956.
153. The Mission published its report in March 1959, and presented in it a series of observations and recommendations, as well as a consider- able amount of statistical and commercial information on each territory. The benefits to be gained from this mission will of necessity depend largely upon the speed and energy with which local business houses. follow up the groundwork covered in the report.
154. The Mission which cost approximately $56,000 (over $36,000 of which was for air travel), was jointly sponsored by the department and the Hong Kong General Chamber of Commerce, the Chinese General Chamber of Commerce and the Chinese Manufacturers' Asso- ciation. Mr. Kwok Chan's expenses of approximately $17,500 was apportioned between the three non-official bodies in the final accounting.
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TRADE FAIRS IN 1959/60
155. Reports were received from the Director of the Hong Kong Government London Office on two European Trade Fairs, in Stockholm and Vienna, and on the basis of these reports it was decided that the Vienna Trade Fair in September 1959, was likely to be the most suitable for Hong Kong participation. Preparatory work was put in hand, and space amounting to roughly 4,000 sq. feet booked. In addi- tion, preliminary inquiries were made with a view to sending a mission to West Africa similar to that which visited Central America. This mission is tentatively scheduled to depart in January 1960.
MISCELLANEOUS
156. Overseas interest in products of Hong Kong manufacture continued to increase, and a large number of business visitors from many parts of the world called at the Trade Promotion Branch to seek advice and assistance. Suitable introduction to local suppliers were made, and factory visits arranged.
157. Many business visitors showed interest in a small standing display of Hong Kong products, which was mounted in the departmental trade reference library. The exhibits were changed from time to time in order to show the range of items produced.
158. An average of five inquiries per day was received by the branch from overseas firms wishing to receive information on Hong Kong products, and the names and addresses of their suppliers. In addition, many local firms made use of the various services offered by the branch.
159. The most noticeable trend during the year was increased American business interest in Hong Kong products. Garments proved to be the most popular product but there were encouraging signs towards the end of the year of appreciable interest in other products, particularly plastics, and metal and wood manufactures.
160. The department intervened in a number of commercial disputes at the request of both overseas and local firms, and several were settled amicably.
TRADE PUBLICATIONS
The Commerce, Industry and Finance Directory
161. Approximately 19,000 copies of the 1958 edition of the Commerce, Industry and Finance Directory were distributed free of
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charge to a very large number of overseas firms and individuals, to airlines, shipping companies, trade and travel associations, and to British embassies and consulates. About one thousand copies were sold locally.
162. Compilation of the text and classified section for the 1959 edition, the selection of photographs, preparation of the cover design and the examination of artwork for all advertisements were completed by the end of the year under review for publication in May 1959. Publication was in fact delayed by printing difficulties until June.
163. The text runs to 116 pages, the last part consisting of a classified section of Hong Kong products with lists of firms dealing in them. Despite the despatch of nearly 400 letters to selected firms, the response to invitations to advertise in the classified section was much less than had been hoped for in a Directory with an assured overseas circulation of about 19,000 copies. Securing suitable photographs once again proved a difficult and time-consuming task but the same high standard as in previous years has been maintained. The Directory is illustrated by twenty four pages of multi-coloured, and twenty eight pages of black and white photographs and carries seventeen coloured and seventy six black and white or monochrome advertisements by local firms. The standard of printing of the text and photographs is high and the department acknowledges with thanks the co-operation received from both printing firms.
Trade Bulletin
164. The value of the monthly Trade Bulletin as a medium of trade promotion was again well proved by the increased number of letters received during the year from overseas merchants wishing to advertise their interests and to receive this publication regularly. A total of nearly 1,500 trade inquiries was received from Trade Bulletin readers overseas during the period under review and 900 requests to be added to the mailing list. Additional supplies of the Trade Bulletin were also sent to most of the British Consulates in the United States and, as a result of the Melbourne Trade Fair, to the main banks in all the Australian state capitals, as well as to similar addresses in the Caribbean area following on the visit of the Commercial Mission. By the end of the year the Trade Bulletin had achieved a worldwide distribution of 7,200 copies.
165. Local sales of the Bulletin fluctuated somewhat during the year, the highest number recorded being for December 1958, with just
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under 1,100 copies. Average sales were about 900 a month. Each issue carries about forty nine pages of advertisements representing some sixty seven Hong Kong firms, and although the number of advertisers tended to decrease after the introduction of the new advertising rates in January 1959, there were signs that this was only a temporary reduction.
166. Throughout the year the bulletin was planned on the basis of a particular theme for each issue, supported by articles of general or topical interest to add variety. Industries covered in this way have included rattanware, garments, furniture, shipbuilding, plastics, building, and heavy and light metal industries. A special effort was made to improve the pictorial content, and commencing with the January 1959 issue a coloured photographic inset was included. The January issue also marked another new departure in the introduction of the new style cover. The department acknowledges with thanks the help of the Public Relations Office's Production Officer in designing this cover and is also grateful to the two printers for their excellent co-operation and technical advice.
167. During the course of the year the printing of the Trade Bulletin was put out to tender, and the contracts for the printing of text and advertisements were awarded to Cathay Press and to the Yat Sun Printing Co. for the printing of the cover and colour inset.
168. The Trade Publications Section also distributed to overseas Chambers of Commerce and trade associations 313 copies of the Hong Kong Annual Report for 1958 and nearly a thousand copies of the Hong Kong General Chamber of Commerce Report for 1957 to Chambers and Consulates abroad.
DEPARTMENTAL LIBRARY.
169. The library has been considerably expanded and re-organized since last year. Three additional book-cases have been installed in order to accommodate the increasing number of publications which have been collected from some forty three countries. Comprehensive information on trade statistics and tariff legislation in many countries is available. There are now some 1,700 books and pamphlets in the library and cataloguing is in hand. Additions to the library are published in the Trade Bulletin every quarter, and during the year it has been used by an increasing number of local and overseas businessmen and students. The library also houses the department's collection of pho- tographs, numbering over 2,500.
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VI. OVERSEAS OFFICES
Commonwealth Preference
THE LONDON OFFICE
170. The continued expansion of Hong Kong's market in the United Kingdom maintained Commonwealth Preference activities at a high level. During the year H.M. Customs and Excise wrote approximately 1,500 letters to Hong Kong accountants about claims to preference being advanced by Hong Kong manufacturers. Every letter was analysed and recorded in the Commonwealth Preference index maintained in the office. The index is an invaluable source of information and provides a continuous system of reference which enables many problems con- fronting United Kingdom importers to be settled speedily.
171. Discussions on preference matters with H.M. Customs were held whenever necessary and included such subjects as transistor radios, the artificial silk aspect of certain P.V.C. fillings used in toothbrushes, and the Commonwealth content accorded in terms of labour and over- heads to certain textiles. Further discussions were held on the subject of Hong Kong embroideries.
172. One major operation made possible by the collaboration of H.M. Customs was the production of statistics of individual textile exports to the United Kingdom from some ninety Hong Kong factories. The figures had an important bearing on the method of negotiations with the Lancashire textile industry.
Trade Fairs
173. To assist in determining departmental trade fair policy for the forthcoming year the Director of the London Office visited the St. Erik's Fair in Stockholm and the Vienna Autumn Fair. A recommendation, subsequently approved, that Hong Kong should participate in the 1959 Vienna Autumn Fair resulted in the commencement of initial planning.
Commercial Relations
174. Commercial introductions effected through the office numbered at least a thousand. Seventy eight requests were made to the Department for Trade Bulletin insertions on behalf of United Kingdom and European companies.
175. Statistical information was supplied on many Hong Kong products and Hong Kong trade generally. Items investigated were cotton vegetable bags, printers' inks and allied products, timber, tinplate, beer
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and stout, iron and steel sheeting, tyres and tyre repair materials, tsing- lee canes and batteries. Commercial disputes numbered twenty and these were referred to the Department. Most were settled satisfactorily.
Public Relations
176. Several letters correcting matters of fact were written to news- papers in the United Kingdom, mostly about Hong Kong's competition in the textile field. Material was provided to writers producing articles about the Colony, and a special effort was made to produce statistical information for a series of Fact Sheets to be issued in connexion with Hong Kong industries.
177. Members of three delegations-the Commonwealth Parliamen- tary Association, the Cotton Board and a delegation of Swedish importers--were provided with all relevant literature about Hong Kong as soon as their intention to make a visit was known. Talks were given to the Bournemouth and Liverpool branches of the English-speaking Union and the Reform Club in Manchester. Film producers intending to visit Hong Kong on location were also assisted.
178. Literature was supplied to schools, where much project work is now being done about Hong Kong, and to societies, businessmen, lecturers and members of the general public. In addition, several hundred letters from persons seeking or proposing to take up appoint- ments were dealt with.
Miscellaneous
179. Over twelve hundred visitors were received and interviewed during the year. Arrangements were made for the placing of advertise- ments on behalf of the Chinese Manufacturers' Association of Hong Kong in connexion with its Sixteenth Exhibition of Hong Kong Products.
180. Close liaison was maintained with the Hong Kong Committee of the China Association and the Director of the London Office attended thirteen meetings.
181. There were eleven meetings of the Board of Governors of Hong Kong House and affairs in connexion with this students' hostel and social centre continued to absorb a great deal of time.
182. The staff consists of a Director, Assistant Director, Senior Clerk, Shorthand Typist, two Junior Clerks and one Office Junior. During the year Mr. J. D. McGregor, Assistant Trade Officer, of the Department spent some weeks in the office on Commonwealth Preference
matters.
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THE TOKYO OFFICE
General
183. Representation of the Colony's commercial interests in Japan continued to be the function of the Hong Kong Government Representa- tive who is concurrently the Head of the Hong Kong Section of the British Embassy in Tokyo. The office of the Section is located at Naka 8th Building, Marunouchi, in the centre of the business district of Tokyo.
184. The main activities of the Section were the furthering of Hong Kong's interests and presenting its views in all matters relating to trade and commerce, as well as the general promotion of trade and the dissemination of information about the Colony.
Japan Cotton Textile Exports
185. The Japanese Government maintained restrictions throughout the year on exports of cotton textiles to Hong Kong (and other countries) under a quota system for printed flannel, poplin, gingham, corduroy and velveteen, and cotton fabrics generally, based on past performance of exporters. Although there were complaints that Hong Kong importers were unable to obtain their requirements of certain groups of cotton textiles, representations made by the office to the Ministry of Interna- tional Trade and Industry are believed to have enabled all such demands to be met.
Strategic Commodities
186. The office maintained close co-operation with the Ministry of International Trade and Industry in its licensing requirements for export to Hong Kong of strategic goods.
Trade Promotion
187. Trade inquiries, and requests for advice and assistance, were received from many sources in Hong Kong and elsewhere. The number of visitors who called in person at the section for interviews exceeded 375 a month. Commercial introductions were numerous, and the section arranged visits to factories and meetings with leaders of trade and industry organizations in Japan for business visitors from the Colony. Assistance was rendered in a number of commercial disputes between firms in Hong Kong and Japan, with a view to bringing about an amicable settlement of claims.
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Trade Fairs
188. The Head of the Hong Kong Section, as the Government Representative in Japan, accompanied a delegation of the Chinese Manufacturers' Association of Hong Kong to the Japan International Trade Fair held at Osaka in April 1958, and to joint meetings of the Osaka Chamber of Commerce & Industry and the Asia Trade Associa- tion (formerly the China-Japan Economic Institute) for discussions on trade between Hong Kong and Japan.
Conferences
189. The office assisted delegations from the Colony attending several international meetings and seminars as well as officials visiting Japan on study tours. The opportunity was taken to distribute trade and other literature about Hong Kong to the delegations from other countries which attended the conferences.
190. The Head of Section was invited to attend meetings of the Executive Committee of the British Chamber of Commerce in Japan and was also present as an observer at various trade conferences held in Japan.
Visits
191. The Hong Kong Government Representative made periodical visits to the industrial areas of Japan and also, while on leave in the United Kingdom from July to October, visited the London Office.
Tourism
192. Numerous inquiries were received, mainly from foreign nationals visiting Japan, concerning tourist facilities and immigration requirements in the Colony.
193. The Hong Kong Government Representative at a ceremony held at Tokyo International Airport on 15th April named a Japan Air Lines DC-7C aircraft the 'City of Hong Kong'. The aircraft joined the Company's Service linking Hong Kong, Tokyo, Honolulu and San Francisco.
Publications
194. Publications such as the monthly 'Trade Bulletin', the 'Com- merce, Industry and Finance Directory', and the 'Hong Kong Annual Report' were distributed to inquirers who sought information concerning trade with, and information about, the Colony. The publications together
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with Hong Kong newspapers and magazines were also made available to visitors in the reading room.
Procurement
195. The Section undertook the procurement of a wide variety of goods for Hong Kong Government departments.
Asian Games
196. The Government Representative in Japan actively co-operated in the arrangements for the participation of the Hong Kong contingent in the Third Asian Games held at Tokyo from 24th May until 1st June. Nine teams totalling eighty two competitors participated in the Games.
197. The Representative supervised a daily commentary on the Games transmitted to Hong Kong over the N.H.K. network by an official of Radio Hong Kong and of tape recordings covering the achievements of Chinese athletes from the various participating countries for broadcast by the Chinese Service of the B.B.C., London.
198. The Hong Kong contingent was headed by the President and Secretary-General of the Amateur Sports Federation and Olympic Com- mittee of Hong Kong (Mr. A. de O. Sales and Mr. O. R. Sadick).
Immigration Facilities
199. The number of visas granted to Japanese businessmen for entry into Hong Kong during the year totalled 3,350, only fifty less than the previous year. There was, however, a marked increase in the number of Japanese firms establishing branch offices in the Colony and of residential permits granted to Japanese businessmen attached to trading firms, as well as to Japanese artisans giving technical assistance to Hong Kong industries.
200. Transit facilities through Hong Kong to the People's Republic of China were granted to nearly 500 Japanese nationals until May when trade relations between China and Japan were interrupted. Thereafter no applications from Japanese businessmen for Hong Kong transit facilities were received, but seventy Japanese nationals representing cultural and friendship associations and labour unions applied for and received transit facilities through the Colony to China.
201. Applications from Ryukyuan nationals desiring to visit the Colony on business were cleared by the office and sixty one visas were granted during the year.
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202. Entry facilities into the Colony were cleared on behalf of 778 Chinese nationals of whom 440 held Hong Kong papers of identity. Advice and assistance were given to a large number of Chinese business- men and students temporarily resident in Japan.
Other Activities
203. The office continued to maintain effective liaison with depart- ments of the Hong Kong Government on a wide variety of topics.
204. The assistance given to the Section by the Japanese authorities and, in particular, the Ministries of International Trade and Industry, Agriculture and Forestry, and Justice (Immigration) is gratefully acknowledged.
Staff
205. The office staff consisted of the Head of Section and seven Japanese nationals.
VII. INDUSTRY AND CERTIFICATION BRANCH
GENERAL
206. The greater part of the work of this branch is necessarily at present concerned with certification, but plans have been laid for expan- sion of activities in the industrial development field, beginning with more systematic collection of industrial production statistics.
207. The branch continued to advise on and, wherever possible, foment industrial development and to assist industrialists, potential industrialists, and representative industrial organizations in their dealing with Government departments. Many inquiries were dealt with and advice given to overseas organizations and persons interested in setting up factories in the Colony.
Clothing
INDUSTRIAL DEVELOPMENT
208. Manufacture of clothing is the Colony's largest industry, garments and shirts alone now employing 28,985 workers in 461 industrial undertakings. There has been a sizeable expansion in this industry during the year, reflected in the very large increase in export earnings. A number of factories, especially those making shirts and blouses operate on a very large scale.
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Textiles
209. The seventeen cotton spinning factories registered with the department for certification purposes had 12,613 employees at the end of 1958, operating 360,424 spindles, 35,792 more than in March 1957. Production of cotton yarn in 1958 was estimated at 127.59 million lbs., 19.69 million lbs. more than in 1957.
210. Labour Department records show 183 undertakings registered as weaving cotton, and employing 15,870 work-people at the end of 1958. One hundred and twenty eight factories, which include all the major mills, are registered with the department for certification of origin purposes. Their installed looms in December 1958 numbered 11,628, some 2,150 more than at the end of 1957 and of which no less than 1,155 were installed in the last quarter of 1958. Actual production of cotton piecegoods from these mills was estimated at 272.68 million square yards in 1958, 19.41 million square yards more than in 1957. Total production of all cloth is unlikely to have exceeded 280 million sq. yds. in 1958.
211. The new textile finishing plant near Sha Tin had by the end of the year reached an advanced stage of completion. Other factories have been engaged in modernizing their existing equipment and installing new equipment, so that the finishing industry should be ready to take a considerable stride forward in 1959. It is believed that already the Colony's sixty five finishing factories are able to process more than 200 million sq. yds. of cloth a year, though finishing at present extends little beyond simple bleaching and dyeing, and roller printing and special finishes have been developed only to a small extent.
Enamelware
212. The manufacture of enamelware is, after textiles, perhaps economically the most important light industry. After considerable and scarcely justified expansion in 1956 under the stimulus of high export prices, the industry suffered a reverse in 1957. Six factories had to close, and there are now twenty two employing 5,644 workpeople. Output was higher in 1958 and the export business has revived, though it is said that prices paid leave only a small margin of profit.
213. The enamelware industry was under fire during the year from United Kingdom competitors, who found Hong Kong has been eroding their markets in West Africa. The London Office has been at pains to correct much ill-informed and vituperative comment emanating from some sections of the U.K. industry.
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Plastics
214. The plastic goods industry continues to thrive, and now employs no less than 9,663 work-people in 299 industrial undertakings, most of them quite small. Plastic toys still have the largest share of production, but there has been a sudden boom in plastic artificial flowers for the American market. More than two thousand people are employed in this branch of the industry alone. A year ago the numbers were so few as to have attracted no special record. Soft plastic articles of improved quality are now being increasingly produced.
Shipbuilding
215. It has on the whole been a busy year for shipbuilding and repair. Two large vessels were completed by the Taikoo Dockyard and Engineering Co. Ltd., and launchings during the year from smaller yards included tugs and barges for Kuwait, a 90-foot steel yacht for the North Borneo Government, a 500-ton cargo vessel for Singapore, fire and salvage tugs and a pilot and a buoy vessel for the Burma Government, four vehicular ferries for Penang, and the first part of an order for one hundred 80-ton lighters for Colombo. There was also increased activity in the construction of small yachts and pleasure craft for export, an industry of increasing importance and likely to have a bright future.
Shipbreaking
216. The Colony's shipbreaking industry has developed steadily over the past ten years, and in 1958 Hong Kong was said to be the world's most active shipbreaking centre. Scrap from shipbreaking is exported and also consumed locally in the production of reinforcing bars and rounds for the Colony's building industry which continues to boom.
Pharmaceuticals
217. The erection of a large processing and packaging plant by an international pharmaceutical firm constituted a new industry for the Colony.
LAND FOR INDUSTRY
218. The department has a special interest in the Kwun Tong Industrial Zone, the reclaimed area on which is now going up the first planned industrial suburb. The Kwun Tong Advisory Committee, of which the Director is Chairman, met on two occasions, in August 1958 and January 1959, to consider problems which had arisen, such as scarcity of bidders for lots restricted to use as flatted factories.
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219. Since sales of industrial sites at Kwun Tong Reclamation commenced in September 1956, eighty sites aggregating some 1,670,000 sq. ft. have been purchased. Two sites of 90,000 and 38,000 sq. ft. respectively were sold during the year. At the end of March new factories were in operation on ten sites, and on a further eighteen, buildings were completed or in course of construction. In the case of the remaining fifty two lots, four of which were large, thirteen of medium size and the remainder of approximately 10,000 sq. ft., no development had taken place.by the end of the year. A number of lessees were in default on building covenants and/or instalment payments of purchase premia. 220. The upset price for industrial lots at Kwun Tong Reclamation is $5.00 per sq. ft. and realized prices for the two large sites sold during the year were $22.42 and $14.60, respectively. A further two sites for housing, bringing the aggregate area of housing sites sold to date to 28,300 sq. ft., were sold at $16.10 and $16.00 respectively, the upset price was $16.00 per sq. ft.
221. Concessionary terms are available to purchasers of industrial sites at Kwun Tong by grants of land by private treaty sale for the erec- tion of workers' housing, and several purchasers have taken advantage of these terms. The Hong Kong Housing Society has acquired land for housing, and the first two blocks, totalling 200 flats, should be ready by the middle of 1959. The first blocks of resettlement estates will become available later in 1959.
222. The Yau Tong Bay area has been set aside for shipbuilding, sawmills and timber yards, and during the year thirty seven sites varying in size between 9,400 and 76,000 sq. ft. were sold. The upset price is $2.00 per sq. ft. and realized prices during the year ranged between $2.62 and $10.70 per sq. ft.
223. The substantial increase in shipbreaking in the Colony has highlighted the difficulty of finding alternative foreshore sites for both shipyards and shipbreaking; many of the firms engaged in these in- dustries having only a precarious tenure on temporary permit. This problem was under consideration at the end of the year.
CERTIFICATION
General
224. During the year, the departmental routine for issue of com- prehensive certificates was overhauled, so that by March 1959 it was found possible, without detriment to the integrity of the certificates, to
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bring the application procedure for Comprehensive Certificates more in line with that for other types of certification and to accept applications for Comprehensive Certificates two days in advance of shipment of the goods instead of the former ten. This was the only major alteration in certification or registration procedure during the year. Changes in- troduced in the previous year continued to operate satisfactorily.
225. Table 8 shows the number of factories registered with the department for the issue of the various types of certificates, the number of certificates issued, and the declared value of goods certified with corresponding figures for the previous year.
226. As at 31st March, 1959, the number of factories registered with the department for the issue of certificates was 3,612, an increase of 382 over the previous year.
227. Organizational and staff changes in the branch at the end of the year, which allowed more discretion to executive staff, permitted some relaxation of the previous rigorous policy regarding refusal of carelessly or inadequately completed applications.
228. In August 1958, the issue of certificates of all kinds for embroidered cotton handkerchiefs was suspended.
Inspections of Factories and Goods
229. The total number of inspections made during the year showed no appreciable increase over previous years, but attention was given to improving the quality of inspection work and reducing the number of inspections of a general nature.
230. There was a continuation of the tendency noted previously for overseas customs authorities to refer cases to the department where they were in doubt or desired more information. While these inquiries increase the burden on inspection staff, this manifestation of confidence in the department's inquiries and reports, and the liaison with overseas customs authorities which it brings, is welcomed and encouraged.
231. Comparative figures of inspections carried out during the last four years will be found in paragraph 323.
Standard Certificates of Origin
232. The number of Standard Certificates of Hong Kong Origin issued during the year was comparable with the figure for the previous year, but showed a slight downward trend. Certain territories require these certificates to be endorsed to the effect that the goods attain at least 25% British Commonwealth content and goods so certified may be
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admitted at preferential rates of duty. Although specific cost statements in support of the claim to 25% Commonwealth content are not required, reference is made to preference costings already on file. Attention was given to improving the checks and criteria used to ensure that the issue of such endorsed certificates was completely reliable.
Commonwealth Preference Certificates
233. Customs authorities in all Commonwealth countries which grant preferential rates of duty for Hong Kong products, except the United Kingdom, look to the department to ensure that when a certificate is issued it is a valid claim to preference in accordance with requirements of the country of destination.
234. The department continued its efforts to secure uniformity of practice among approved accountants in the preparation of cost state- ments which form the basis of claims for preference purposes. Three letters on principles and practice were issued to accountants.
235. A revised and consolidated version of H.M. Customs & Excise Notice No. 27A was issued to Chambers of Commerce and Accountants. This version announced the substitution of the word 'Commonwealth' for 'Imperial' and 'Empire', where applicable. This change in ter- minology was also adopted by the department.
236. As they became known, changes in the interpretation of pre- ferential tariffs of overseas territories were communicated to Chambers of Commerce, etc., and the revision of the chart on Commonwealth Preference previously published by the department was completed for internal use.
237. The number of Commonwealth preference certificates issued showed a decrease of 15.7%.
238. H.M. Customs & Excise in London continued to be responsible for the scrutiny of cost statements prepared by Hong Kong approved accountants in support of claims to Commonwealth Preference for goods exported to the United Kingdom. As indicated in paragraphs 170 - 172, the London Office was involved in correspondence arising out of such claims. There was an increasing tendency for H.M. Customs to seek the department's help regarding claims in which they wished on-the-spot inquiry to be carried out.
Comprehensive Certificates of Origin
239. There was again a marked increase in the number of Compre- hensive Certificates of all types issued during the year. Commercial
46
IBRARY
| MARIND DEPAÄ
Certificates which cover the most valuable part of the trade increased in number by 52.6% and the total value of goods exported under comprehensive certification increased by 69.7%.
240. During the year approval was given by the United States For- eign Assets Control for the addition of garden peas to the Agricultural Products procedure, Chinese type novelty candles to the Joss Candles procedure, rayon and nylon embroidered articles to the Embroidered Silk Articles procedure and rayon brocade piecegoods to the Silk and Silk/Rayon piecegoods procedure. New items cleared for import into the United States and its dependencies under Comprehensive Certificates of Origin were graphite, tungsten ore and concentrates, and rayon brocade articles.
241. 'Western style' cotton shirts and dolls' clothes, having been removed from the 'presumptive' list in 1957, were restored last year and included in the Cotton Wearing Apparel and Textile Novelties procedures respectively.
Miscellaneous Certificates
242. The Certification Branch continued to issue Letters of Support where goods are processed in the Colony but to a degree insufficient to confer Hong Kong origin on the products, and General Certificates certifying the capacity of a manufacturer to produce goods for which the department's certificates of Hong Kong origin may be issued and for which an import licence is sought overseas.
243. The Branch continued to certify exports and verify the signature of the Superintendent of Gardens on phytosanitary certificates, of the Director of Marketing and the Director of Agriculture, Fisheries and Forestry on certificates of origin for natural produce exported, and of certain medical practitioners on phytopathological, hide and hair certificates.
Fees
244. Fees collected for the services of revenue officers in connexion with the issue of certificates amounted to $159,757.50.
Enforcement
245. Certificates were revoked in thirty cases, and eight successful prosecutions for offenders under the Imperial Preference Regulations were concluded during the year. Fines between $250 and $2,000 were imposed.
47
246. A prosecution on charges of conspiracy conducted by the Police in connexion with Comprehensive Certificates of Origin for frozen prawns resulted in three executives of a company each being sentenced to three years' imprisonment with hard labour.
VIII. TRADE LICENSING BRANCH
GENERAL
247. In August 1958 the countries subscribing to the United Nations Resolution of 19th May, 1951 reassessed the strategic significance of goods embargoed for export to the Sino-Soviet Bloc. It was possible as a result to relax local import and export controls to permit the free movement under licence of the goods no longer embargoed.
248. New licence forms printed by the Government Printer were introduced during the year. They allow more space for the description of goods, while the import licence incorporates a new section to deal with part shipments.
IMPORT LICENSING
249. Import controls were relaxed to permit the import of many items formerly under strict control, but restrictions were maintained on the import of goods having a high strategic value. Such commodities continued to be subject to quantitative and end use controls. Local factories were required in many cases to submit evidence of their use of the materials concerned. Inspections of factories were also made to ensure that highly strategic chemicals imported for specific uses were being properly used.
250. The Department issued 190 Delivery Verification Certificates during the year to verify the landing of strategic goods in Hong Kong. This compares with 632 issued in 1957/58 and 844 in 1956/57.
251. The number of import licences issued during the year was 41,742 compared with 44,757 in 1957/58.
EXPORT LICENSING
252. The 1958 relaxation in the embargo on the export of strategic goods to the Sino-Soviet Bloc has meant that a considerable range of goods formerly embargoed may now be exported to China. Export licences are still required for these goods but have been approved freely since the relaxation.
253. Delivery Verifications and Landing Certificates are required in support of export licences issued for highly strategic goods. These
48have been supplied by exporters to verify the landing of these goods in approved territories.
254. The majority of export licences are issued for exchange control reasons. The total number issued during 1958/59 was 249,708 compared with 225,221 in the previous year.
EXPORTS OF COTTON MANUFACTURES TO THE UNITED KINGDOM
255. Following representations from the Lancashire cotton industry during 1958, the Hong Kong cotton textiles industry gave a voluntary undertaking in December 1958 to limit the export of cotton textiles from Hong Kong to the United Kingdom in each of the three years commencing 1st February, 1959. In furtherance of this undertaking and at the request of the Hong Kong Negotiating Committee, Govern- ment agreed to institute export licensing for all such exports with effect from that date.
256. The ceiling set by the undertaking for cotton piecegoods is 118 million square yards for the first year. Export quotas totalling some 70 million square yards have been allocated to shippers in respect of cotton piecegoods other than yarn-dyed cloth and towelling, in propor- tion to their 1958 shipments. The balance of 48 million square yards is available for any shipper on a first-come-first-served basis. No limit is placed on the exports of made up cotton goods.
257. For the second and third years of the undertaking the limit for exports of cotton piecegoods is subject to adjustment in accordance with an agreed formula based on actual exports of made up goods in the first year covered by the undertaking.
IX. SUPPLIES BRANCH
RESERVED COMMODITIES
Rice
258. A review of the existing rice control scheme was made at the end of 1958 and it was decided to continue the scheme in operation without amendment for a further year. In order to meet increased demand the basic quota for 1959 was raised to 72,600 metric tons per quarter and the stockholding commitment to 39,600 metric tons. During 1958 optional additions to basic quotas of 10%, 15%, 20% and 20% were offered during each quarter respectively and were taken up in full on each occasion.
49
259. Total rice imports during the year ending 31st March, 1959, were 297,432 metric tons as compared with 292,500 metric tons in the previous financial year, as follows:
1957/58
Source
1958/59
M/Tons %
M/Tons %
Thailand China ..
163,163
55.8
158,746
53.4
64,314
22.0
63,168
21.2
Cambodia
52,604
18.0
36,673
12.3
South Vietnam
1,100
0.4
21,441
7.2
North Vietnam
10,192
3.5
8,797
3.0
Burma
1,002
0.3
8,577
2.9
Australia
125
25
Pakistan
5
292,500
100.0
297,432
100.0
260. An unconfirmed rumour to the effect that export premia for Thai rice would be increased caused local merchants to make heavy speculative purchases during the early part of the year and brought about an increase in prices. The introduction, however, of a new quota condition on 1st July, 1958, limiting the period of credit allowed by importers to wholesalers, successfully curbed speculative buying, and prices resumed a more normal level.
261. All in all the scheme continued to operate satisfactorily and there was little public criticism. An indication of the success of the scheme is that local rice prices were unaffected by international crises during the year.
Frozen Meat
262. Frozen meat remained a 'reserved commodity' and import and export licences were required for all supplies entering and leaving the Colony.
263. Total imports of frozen meat for 1958/59 were 7,717 long tons.
Total
Source
Beef
Mutton Pork
Offals
%
L/Tons
China
280
184
2,415
2,976
5,855
75.9
Australia
971
315
30
111
1,427
18.5
Holland
23
22
77
122
1.6
New Zealand
8
5
79
18
110
1.4
Denmark
35
21
56
.7
Thailand..
50
50
.7
U.S.A.
South America
49
49
.6
·
17
8
11
36
.5
South Africa
10
10
.1
Japan
2
2
Totals L/Tons
1,351
504
2,599
3,263
7,717
100.0
50
264. Local consumption of both frozen and fresh meat increased heavily during the year as the following figures show:
1956/57 1957/58 1958/59
Fresh Meat Frozen Meat
L/Tons
L/Tons
L/Tons
30,109
35,784
49,137
7,390
7,037
9,398
37,499
42,821
58,535
Stocks were temporarily run down by 1,681 tons.
Coal
265. Total imports for 1958/59 amounted to 202,556 long tons as compared with 246,505 long tons in 1957/58.
Source
China
Japan
North Vietnam
Indonesia
Australia
Taiwan
India ..
1957/58
1958/59
L/Tons %
L/Tons %
173,591
70.4
172,127
85.0
880
.4
14,280
7.1
6,892
2.8
6.706
3.3
20,335
8.3
4,516
2.2
·
•
6,181
2.5
3,325
1.6
3,035
1.2
1,602
.8
35,591
14.4
:
246,505 100.0 202,556
100.0
266. Coal remained a 'reserved commodity' and import and export licences were required for all supplies entering the Colony.
Firewood
267. Imports of firewood from China fell sharply during the last quarter of 1958, and in order to encourage imports from alternative sources firewood was made a 'reserved commodity' on 15th January, 1959, imports from China being restricted by quota to 3,000 tons a month.
268. Import and export licences are required for all shipments of firewood. Following these measures prices of firewood became normal and an adequate supply was resumed.
269. The maintenance and turnover of the Government firewood stockpile was carried out smoothly during the year. Substantial releases were made from Government stocks during the period of short supply
51
which helped to remedy the deficiency in imports and to prevent prices from rising too steeply.
270. Total imports of firewood during the year 1958/59 were as follows:
Commercial Imports
Source
Total Imports
Government
Imports
Tons
Tons
Tons
China
61,213
61,213
Malaya
24,557
24,557
North Borneo
19,016
4,129
14,887
Brunei
1,700
1,700
Formosa
100
100
Macau
48
48
106,634
4,129
102,505
271. 21,038 tons of Government firewood were sold in the year ended 31st March, 1959, at an average price of $4.67 per picul as compared with 6,045 tons at $5.02 per picul in the previous year.
Foodstuffs
272. Reserve stocks of certain essential foodstuffs continued to be maintained and turned over during the year.
Accounts
273. The net receipts on the Government stockpile for the year were $1,448,225.18, being the difference between proceeds of sales and expenditure on supplies, storage, etc. After revaluation of the stocks at 31st March, 1959, on the basis of the market value or original landed cost, whichever was lower, the net loss for the year was $1,086,205.56.
X. DUTIABLE COMMODITIES BRANCH
GENERAL
274. Total net revenue from duties and licence fees during the year under review was approximately $113,057,000, which represents an increase of $5,731,901 (5.3 per cent) over the figure for the previous year. The return from every type of duty was the highest ever recorded.
275. Once again tobacco was the principal source of revenue bringing in $46,670,892, a rise of over $1.5 million or 3.3 per cent
52
above the figure for the previous year. Revenue from this source has increased regularly over the last few years although the rate is gradually falling off: collection from tobacco during the year under review is 147.4 per cent more than the collection for the year 1948/49, 29.9 per cent above 1954/55 and 14.5 per cent above 1956/57. With effect from 25th February, 1959 the duty rates on tobacco of non-Empire origin and manufacture were raised slightly but the increases have had little effect on the net revenue collected.
276. Hydrocarbon oils have replaced liquor as the next most impor- tant source of revenue. The collection was almost $2.5 million more than the collection for 1957/58. Many factors have contributed to the increase and it is difficult to attribute it to any particular source; it is certain, however, that the construction of new roads and buildings and general industrialization have played a large part. The relaxation of quantitative control of fuel supplied to small vessels not entitled to duty-free fuel has also helped, as has the continued rise in the number of motor vehicles in use in the Colony.
277. Liquor has dropped to third place as a revenue producer but, even so, almost $1.5 million more has been collected than for 1957/58. Liquor revenue has increased consistently over the years and it is of interest to compare the collection for 1948/49 of approximately $10,300,000 with almost $28,000,000 collected during the year under review. Towards the end of the year the duty rates on certain wines were varied, the duty rate for vermouth being brought into line with that of port, sherry and madeira and a reduction of 50 per cent being made in the duty rates payable on other still wines imported in cask. These alterations have not yet had any apparent effect in the total collection from this source.
278. At 2 p.m. on 25th February duties on toilet preparations and proprietary medicines were abolished. In spite of this, more than one month before the end of the financial year, revenue from these com- modities was $146,876 more than for the whole of the previous year.
279. Although sales of table waters are seasonal, the advertising campaigns conducted by the larger manufacturers have stimulated sales, and consequently a rise in revenue of 4.4 per cent over the last financial year has been recorded.
53
REVENUE FROM DUTIES
280. Net revenue from duties, as compared with collections for the previous year, are summarized in the following table:
1957/58
$
1958/59 $
Tobacco
45,163,230
46,670,892
Hydrocarbon oils
26,145,514
28,621,221
Liquor
26,566,105
27,972,324
Toilet preparations and proprietary
medicines
5,188,186
5,335,062
Table waters
2,653,268
2,768,696
Methyl alcohol
6,427
10,111
$105,722,730
$111,378,306
281. This represents an increase in 1958/59 of $5,655,576, about 5.3% above the figure for the previous year. A further breakdown of these figures is given in Table 10.
REVENUE FROM LICENCES
282. Revenue from licences issued under the Dutiable Commodities Ordinance shows a slight increase over last year as may be seen from the table below:
1958/59
1957/58
$
$
Liquor
1,052,903
1,117,019
Tobacco
373,394
394,610
Hydrocarbon oils
38,990
38,520
Toilet preparations
and proprietary
medicines
129,635
115,950
Table waters.
6,205
6,840
Methyl alcohol
540
470
Ship and harbour vessel licences
780
5,363
$1,602,447
$1,678,772
283. The introduction of a mechanized system in the Licensing Section of the Dutiable Commodities Branch on 1st April, 1958, is largely responsible for the increase of revenue from licence fees. The new system has made it possible to enforce stricter control of licensed premises and to ensure prompt payment. Closer control of the movement of dutiable commodities within the waters of the Colony has resulted in the detection of many unlicensed ships and harbour vessels carrying dutiable commodities and many more licences have been issued to these vessels as a result. Further details of licences and revenue derived therefrom are given in Table 11.
54
XI. STATISTICAL BRANCH
GENERAL
284. The Branch has been preoccupied during the year with the administrative and technical re-organization required by the introduction on 1st January, 1959 of a mechanized method of producing the Trade Statistics.
285. The presentation of the tables in the Statistical Supplement to the Government Gazette has been improved and some new tables have been introduced.
286. A post of Assistant Statistician was created in September 1958 and the person appointed was seconded for one year to the Housing Department to re-organize its statistical records and services.
287. Statistical information and advice have been provided to the department, to other departments and to outside concerns throughout the year.
TRADE STATISTICS
288. A revised edition of the Hong Kong Imports and Exports Classification List came into force on the 1st January, 1959. On that date also three types of declaration forms came into force instead of two-one for imports, one for re-exports, and one for the produce and manufactures of Hong Kong. The number of commodities separately classified has been considerably expanded, and many additional coun- tries have been separately included in the new classification. The January 1959 export volume of the trade statistics contained two sections, itemized in respect of exports and re-exports. The issue of the trade statistics volumes was unfortunately delayed during the first few months owing to teething troubles and difficulties experienced in introducing the mechanization programme. It is expected that these problems will be overcome and that the monthly volumes will be published more promptly before the autumn of 1959.
289. Revenue derived from trade declarations, landing certificates, ships' manifests, statistical services rendered to firms, etc. totalled $754,767 for the financial year ending 31st March, 1959 compared with $747,695 for the previous year. A total of 740,235 import and export declarations were received during the year.
55
STATISTICS OF TRADE BY PARCEL POST
290. The method of collection of parcel post statistics is that merchants are requested to complete voluntarily each month a simple form indicating the total number and total value of packages they have imported or exported through the post during the previous month; only commercial transactions are required. The response rate during the year has not been good, as a comparison with the recorded total number of parcels exported and imported through the Post Office shows.
291. The number and value of parcels declared to the Statistical Branch during the year ending 31st March, 1959 was:
Despatched
Number of parcels
Value
Received
Number of parcels Value
43,610
$13,254,108
28,924 $18,007,173
Although efforts have been made during the year to encourage merchants to complete these returns, the coverage is still very far from complete.
292. Where merchants, through usage or convenience, continue to record their postal transactions on import and export declaration forms, these are included in the Trade Statistics under the appropriate com- modity and country classification.
293. As yet there is no classification of parcel post into exports and re-exports and parcel post which is despatched is now recorded in the Trade Statistics as exports.
MECHANIZATION
294. The Machine Room of the Statistical Branch now contains a Senior Rolling Tabulator, a Reproducing Summary Card Punch, a Collator, a Sorter, and a Sorter-Counter. An Interpreter is on order as is a new Sorter-Counter to replace the existing one which has been in service since 1947. The machines are supplied by the International Computers and Tabulators Ltd., England. Two air conditioning units and a dehumidifier have also been installed in the Machine Room.
295. The recruitment of staff to operate these machines together with punches and verifiers was carried out during the year. The Machine Supervisor and the Senior Machine Operator attended a six weeks course in Calcutta and returned to Hong Kong on 22nd December, 1958.
56
RETAIL PRICE INDEX
296. The Retail Price Index continued to be published monthly and the figures for the end of each quarter, on the basis March, 1947=100, were as follows:
June
Sept.
Dec.
March
1958
1958
1958
1959
Food
121
130
126
147
Rent
119
119
119
119
Clothing
86
84
88
86
Fuel
97
97
112
112
Electric Light
61
61
61
61
Cleaning ...
97
98
94
94
Education
140
140
140
140
Tobacco and Cigarettes
113
113
113
113
Doctors and Medicines
105
105
105
105
Fares
100
100
100
100
Household Equipment
108
108
108
112
Hairdressing
111
111
111
111
Newspapers and Stationery
153
153
153
153
Shoe Repairs
75
77
77
77
Rates
100
100
100
100
General Retail Price Index
115
120
118
130
297. Retail prices for almost all important items of foodstuffs began to rise shortly after Christmas in 1958 and remained high throughout the last three months of the financial year. The General Index for March 1959 went up to 130, a record figure, reached only once before in September 1953 when the price of rice was exceptionally high.
ASSISTANCE TO OTHER DEPARTMENTS
298. Routine statistical analyses from punched cards, as well as ad hoc requests for special returns, have been carried out for the Royal Observatory, the Crime and Traffic Branches of the Police Force, the Registrar General's Department, and the Labour Department. Regular returns have been submitted to the United Nations Organization and its specialized agencies. The Retail Price Index has been calculated monthly, and returns from Departments collated to prepare the statistical supplement to the Government Gazette. Advice on statistical method has been given when required.
299. The Hollerith machines have been made available to the Urban Services Department for work in connexion with sanitary and housing statistics.
300. Hollerith cards punched during the year numbered 249,750,
57
XII. THE PREVENTIVE SERVICE
GENERAL
301. An intensive drive to secure suitable recruits as Revenue Sub- Inspectors and Assistant Revenue Officers met with success. Three hundred and thirty four officers of an approved establishment of 335 were serving at one time during the year.
302. Two new fast launches were commissioned during the year in place of three slower out of date vessels.
ORGANIZATION
303. The general organization of the Preventive Service remained unchanged throughout the year but the posts of Revenue Officer Classes I, II and III and Women Revenue Officer Classes I, II and III were replaced by posts of Revenue Sub-Inspector, Senior Revenue Officer, Revenue Officer, Assistant Revenue Officer, Woman Revenue Sub- Inspector, Woman Senior Revenue Officer, Woman Revenue Officer and Woman Assistant Revenue Officer respectively. Fifty seven officers ceased to be revenue officers on abolition of their posts.
TRAINING
304. Ninety Assistant Revenue Officers and four Woman Assistant Revenue Officers were trained during the year. The majority of the Assistant Revenue Officers were recruited from H.M. Dockyard and Service personnel who had become redundant due to reductions in staff of the organizations concerned. In addition, forty three revenue officers attended refresher courses in more advanced duties. One hundred and seventy five applicants were interviewed for the post of Revenue Sub- Inspector and twenty two were recruited and commenced training in February 1959. A high standard of discipline was attained by all classes of officer attending instruction courses.
DISCIPLINE
305. Four Revenue Inspectors, four Revenue Sub-Inspectors, one Revenue Officer and two Assistant Revenue Officers were commended by the Director during the year. In addition, one Revenue Sub-Inspector, one Revenue Officer, one Revenue Officer Class II and one' Assistant Revenue Officer received favourable entries in their Records of Service for good work.
58
306. One Woman Assistant Revenue Officer was highly commended by the Director.
307. Punishments were awarded as follows:
Admonishments
Reprimands
Severe Reprimands
Deferment of increment
Dismissal
SEARCHES
1957/58
1958/59
2
1
2
2
1
1
1
2
2
308. Eight hundred and seventy one ocean going vessels were inspected and 25,880 native craft searched within and without the harbour limits, as compared with 1,773 and 33,758 respectively during the previous year. Preventive Service launches steamed a total of 22,320 hours. Macau ferries were searched daily and cross-harbour motor boats serving the areas known to produce illicit Chinese liquor received a great deal of attention. Officers on duty at Kai Tak Airport examined 25,826 packages of freight, 1,617 of which were detained for payment of duty.
309. Patrols in the New Territories logged a total of 64,745 miles on mobile patrol duties during the year, as a result of which 338 seizures of contraband were made. Thirty four arrests were made, and twelve summonses issued for offences against the legislation enforced by the Preventive Service. At the Lowu border sub-station 564,395 passengers passed through the Baggage Examination Hall during the year.
DUTIABLE COMMODITIES
310. With the further relaxation of strategic controls, Preventive Service launches were able to devote more attention to the control of dutiable commodities. Harbour patrols continued their efforts of suppress the illegal movement of ships' stores. A large number of discrepancies, both in stores' application forms and import and export statements were uncovered, and those concerned successfully prosecuted. During the course of the year numerous seizures of dutiable commodities were made on incoming ocean vessels for both payment of duty and confiscation. The radar equipment on the C. & I. launches facilitated a large number of seizures of Chinese prepared tobacco. Radar was also used to advantage in picking up vessels which later proved to be carrying illegal immigrants, and assistance was given to the Police in this connexion on numerous occasions throughout the year.
59
311. More patrols on outlying islands were carried out, and officers took the opportunity to visit villages off the beaten track. Help and advice were given in a number of cases regarding licence conditions under the Dutiable Commodities Ordinance.
312. Operations against gangs concerned in the smuggling of dutiable Chinese prepared tobacco were intensified with considerable success. Total seizures of this commodity were more than three times those in the preceding year.
313. It was found that the smugglers were using motor vehicles, tricycles and bicycles in delivering dutiable commodities. Counter-action by land patrols led to the detention of a considerable number of vehicles of various types found to be carrying contraband.
314. The control of dutiable commodities continued to be the main task of the New Territories Section throughout the year, particularly in those areas adjoining Deep Bay where smugglers take full advantage of the maze of creeks, footpaths and villages to effect their landings.
315. The following are the totals of dutiable goods seized in the New Territories :
Chinese prepared tobacco
Foreign cigarettes
15,811 lbs.
Macau cigarettes
Local cigarettes
3 lbs. 572 lbs.
7 lbs.
13,500 lbs.
Tobacco stems
European type liquor
8 gallons
316. Operations against illicit distillers resulted in the seizure of:
Stills, native type
Chinese liquor
Fermenting material
NARCOTICS
163 units
538 gallons 7,648 gallons
317. Thirty six seizures of narcotics and miscellaneous paraphernalia were made during the year under review. Court cases and confiscations in respect of these seizures are given in Table 12. Throughout the period close liaison continued to be maintained with the Police Narcotics Bureau.
318. Extensive searches were conducted of vessels and aircraft arriving from suspected ports, and guards were posted on such vessels throughout their stay in port where possible. The success of these searches can be gauged from the fact that 1,858 lbs. of raw opium, 59 lbs. of prepared opium, 16 lbs. of morphine, 4 lbs. of crude morphine,
60
90 lbs. of morphine hydrochloride, 2 lbs. of diacetylmorphine and 10 lbs. diacetylmorphine hydrochloride were seized during the year.
319. The largest single seizure of the year was made at Kai Tak Airport when two unclaimed suitcases were examined after the arrival of a plane from Bangkok. These suitcases contained 69 lbs. of morphine hydrochloride, 9 lbs. of morphine and 54 lbs. of raw opium. Another seizure made at the airport involved an unclaimed suitcase, also from an aircraft arriving from Bangkok, containing 74 lbs. of raw opium, 4 lbs. of morphine and 7 lbs. of diacetylmorphine hydrochloride. Other seizures of note were made on miscellaneous vessels, the most outstand- ing being the seizure of 845 lbs. of raw opium and 31 lbs. of prepared opium on a sampan lying amongst a mass of native craft in the Yau Ma Tei typhoon shelter.
320. On a vessel from Bangkok a rummaging party, moving cau- tiously through a cargo of buffaloes, came across a gunny sack concealed under a tarpaulin containing 21 lbs. of morphine hydrochloride and 7 lbs. of morphine. Another vessel from Bangkok was found to contain a secret compartment amongst the bilges in the tunnel shaft in which were found 262 lbs. of raw opium and 27 lbs. of prepared opium.
STRATEGIC COMMODITIES
321. Only two seizures of Specified Articles were made during the year. The first concerned 150 bars of nickel anodes found submerged in a fish pond near Yuen Long in the New Territories, and the second, seven radio valves and two photocells found on a man about to cross the border at Man Kam To.
CERTIFICATES OF ORIGIN
322. The following table shows the number of inspections carried out by officers of the Industry Section compared with the three previous
years:
1955/56
1956/57
1957/58
1958/59
24,252
42,735
42,171
42,554
Further details of the work carried out by this Section will be found in paragraphs 229 and 230.
61
MERCHANDISE MARKS
323. As in the previous year, four infringements of the Merchandise Marks Ordinance were detected and dealt with by the Preventive Service during the year. Commodities involved in those offences were cough syrup, vitamin tablets, haircream and adulterated milk. In each case confiscation of the goods was ordered by the Courts.
BULLION
324. Gold seizures totalled approximately 35 lbs. Most of this was seized in various small amounts smuggled into the Colony on Macau ferries. Four-and-a-half pounds were found in a cloth belt on the body of a crew member leaving a motor junk which arrived from Macau. All bullion seizures were made as the result of information received.
COURT ACTIONS
325. The decision made in 1957 to proceed against suspect persons by way of summons whenever possible was continued throughout the year. There was some reduction in the total number of court actions, arrests and the amount of fines levied :
Actions Arrests
Fines
1956/57
1957/58
1958/59
2,742
1,679
1,150
783
540
404 $211,009 $230,952 $165,441
An indication of the major confiscations ordered by the Courts, other than of dutiable commodities and dangerous drugs, is given in Table 13.
XIII.
LEGISLATION
326. In June, the Dutiable Commodities (Amendment) (No. 2) Regulations, 1958, were published as Gazette Notification A. 31 of 6th June, 1958. The purpose of these was to amend Regulation 8 and the First and Second Schedules of the principal regulations to make provi- sion for the collection of duty on methyl alcohol similar to that in the case of hydrocarbon oils, with the exception that it was not considered necessary to require the deposits of cash security in the case of methyl alcohol.
327. Also published in June were two amendments to Regulations made under the Merchandise Marks Ordinance (Chapter 41). Published
62
as Gazette Notification A. 34 of 13th June, 1958, were the Official Prosecution (Amendment) Regulations, 1958. Their purpose was:
(a) to enable the Attorney General or the Director of Commerce and Industry to seize or detain documents or other articles required as evidence in connexion with cases of goods suspected of con- travening the provisions of the Merchandise Marks Ordinance; (b) to provide for the usual method of protecting and remunerating
'informers';
(c) to include an assistant or deputy director within the term 'Director of Commerce and Industry' where it appears in the principal regulations; and
(d) to clarify the title of the principal regulations by specific reference
therein to merchandise marks.
328. Gazette Notification A. 35 also of 13th June, 1958, notified amendments to the Seizure of Prohibited Goods Regulations. The purpose of the amendments was to clarify the title of the principal regulations by specific reference therein to merchandise marks and to include an assistant or deputy director within the term 'Director of Commerce and Industry' where it appears in the regulations.
329. On 17th December a resolution was passed by the Legislative Council under section 4 of the Dutiable Commodities Ordinance, Chapter 109, to the effect that with effect from the date of the resolution duty would no longer be payable on methyl alcohol used solely in the testing of aircraft engines.
330. The Importation and Exportation (Reserved Commodities) (Amendment) Regulations, 1958, published as Gazette Notification A. 83 of 31st December, 1958, added firewood to the list of reserved commodities.
331. A specially appointed negotiating committee, representative of the Hong Kong textile industry after holding discussions with represent- atives of the United Kingdom Cotton Board, undertook to restrict exports of cotton goods to the United Kingdom to an agreed annual amount for a period of three years, and asked the Hong Kong Govern- ment to make the necessary legal and administrative arrangements for policing the undertaking. The developments which led up to this situa- tion are discussed more fully in Chapters II and IV. The Exportation of Cotton Manufactures (Prohibition) Regulations, 1959, published as Gazette Notification A. 2 of 16th January, 1959, were therefore enacted to provide that with the exception of those manufactures specified in
63
the Schedule thereto, no person could export to the United Kingdom any manufactures wholly or mainly of cotton without a licence from the Director of Commerce and Industry.
332. On Budget Day, 25th February, 1959, the Financial Secretary announced that duty on Toilet Preparations and Proprietary Medicines was abolished. At the same time reductions in the duty payable on certain table wines were announced, and a slight increase in the duty on tobacco and cigarettes. To effect these changes three resolutions were passed by the Legislative Council under Section 4 of the Dutiable Commodities Ordinance (Chapter 109), which were published as Gazette Notification A. 12, 13 and 14 of 18th March, 1959.
333. Detailed work commenced in October on the revision of the Dutiable Commodities Ordinance (Chapter 109), and the first draft was completed by January 1959. The announcement of the abolition of duty on toilet preparations and proprietary medicines necessitated a considerable revision to the first draft of the new Ordinance, and this was still in hand at the end of March 1959.
334. For various reasons, principally because of unavoidable delays in the re-organization of the Preventive Service, little further progress was made with the drafting of the Preventive Service Bill.
XIV. ACCOUNTS AND ADMINISTRATION BRANCH
General
STAFF
335. The department continued to function in three divisions, namely Administration, Development, and Controls, each under an Assistant Director, assisted by an Administrative Officer in the case of the Development and Controls Divisions. With effect from the 1st April, 1958, a new post of Senior Accountant and Secretary was created to provide for co-ordination of the work carried out by the former Staff and Welfare Section and the Accounts and Stores Section, and to relieve the Assistant Director of the Administration Division of as much as possible of his day-to-day routine work. This post graded at Senior Executive Officer Class II level, together with a post for an Executive Officer Class II, enabled a new branch to be formed entitled Accounts and Administration Branch which was divided into two sections, namely, Accounts and Stores, and Administration, each under an Executive Officer Class II responsible direct to the Senior Accountant and Secretary.
64
MARINE DEPARTMENT LIBRAR
336. The distribution of branches and sections between the three divisions is indicated in Table 7, while Table 14 shows the numerical distribution of posts throughout the department.
Establishment
337. The increase in establishment of 147 posts compared with the previous year was due mainly to additional staff being recruited for the Preventive Service for the purpose of enforcing stricter control over trafficking in narcotics. Fifty one out of a total of 785 posts were filled by expatriate officers.
Preventive Service
338. As a result of the re-organization of the Preventive Service, the following promotions and regradings took place:
Promotions
Old Grade
74 Revenue Officers Class II
4 Revenue Officers Class III
New Grade
to Revenue Sub-Inspector to Revenue Officer
1 Woman Revenue Officer Class I to Woman Revenue Sub-Inspector
3 Women Revenue Officers
Class III
Regradings
23 Revenue Officers Class I
7 Revenue Officers Class II 10 Revenue Officers Class II 11 Revenue Officers Class III 7 Women Revenue Officers
Class III
to Woman Revenue Officer
as Revenue Sub-Inspector as Senior Revenue Officer as Revenue Officer
as Assistant Revenue Officer
as Woman Assistant Revenue Officer
339. Ten Revenue Officers Class I, forty six Revenue Officers Class II, and one Woman Revenue Officer Class II retired on abolition of office.
340. At the end of the year there were fourteen Revenue Officers Class I and twelve Revenue Officers Class II remaining in the old grades pending determination of their future.
Retrenchment
341. Owing to the provision of mechanical aids in the Statistical Branch, it was possible to reduce the number of clerical posts in the branch by seven. These were off-set by a nett increase of eleven posts. for staff required to operate the machines.
342. Following the closure of certain firewood yards, it was found necessary to give eleven watchmen notice of their intended retrenchment
65
+
at the end of March 1959. Happily, it was found possible to offer re-employment to two elsewhere in the department, while seven others were to be transferred to posts in the Resettlement Department on 1st April. The remaining two preferred to seek employment elsewhere, although they also could have been taken on by the Resettlement Department.
Recruitment and Training
343. Recruiting Assistant Revenue Officers by means of a parade was attempted experimentally early in the year; due to the number of persons who attended, the situation almost got out of hand, and it was decided to abandon this method. Altogether ninety officers were taken on as a result of this experiment.
344. Later in the year, twenty two Revenue Sub-Inspectors were recruited by public advertisement inviting written applications. These officers were still under training at the end of March 1959.
345. The strength of the Preventive Service was considerably below establishment in the lower ranks following approval of additional staff for control of narcotics, and in January 1959, arrangements were set in train to recruit, if possible, 130 Assistant Revenue Officers from H.M. Dockyard, War Department, Army, R.A.F., and more recently, H.M.S. 'Tamar', personnel. Although about twenty five was the number that had previously been regarded as the maximum which could effi- ciently be trained at one time, it was decided to set a target for two intakes of fifty new recruits each early in the new year in order to bring the service up to strength.
346. Senior Revenue Inspector Hatton was awarded a Trainers Certificate after he had successfully completed a two-week course for training supervisors within the Training Within Industry (T.W.I.) pro- gramme organized by the Labour Department.
347. Mr. A. G. Trickett, Assistant Trade Officer, left for Japan on 28th March, having been awarded a place on the first eight-week course at the newly opened Trade Promotion Centre in Tokyo. The E.C.A.F.E. has organized this centre and was itself responsible for air fares and subsistence expenses. Although making available Mr. Trickett, who was the Trade Licensing Officer, involved additional work by other officers because there was no replacement, it was felt to have been worth while as courses in Government methods of promoting trade are rare.
66
Staff Changes
348. Mr. D. C. Barty, Cadet Officer Class I, relinquished his post as Assistant Director, and proceeded on vacation leave on 17th December, 1958.
349. Mr. T. D. Sorby, Cadet Officer Class II, assumed the post of Assistant Director (Administration) and acted as Cadet Officer Class I with effect from 22nd December, 1958.
350. Mr. B. I. Barlow, Cadet Officer Class II, was appointed Assistant Director of the Development Division with effect from 17th November, 1958, vice Mr. Sorby.
351. Mr. L. C. Millington, Assistant Chief Preventive Officer, returned from vacation leave and resumed duty on 13th July, 1958; he acted as Deputy Chief Preventive Officer from 14th July, 1958, until 26th January, 1959, while Mr. D. H. Knox, Deputy Chief Preventive Officer, was on vacation leave.
352. Mr. F. G. Carroll, Senior Revenue Inspector, was appointed to act as Assistant Chief Preventive Officer vice Mr. Norris, who departed on vacation leave on 27th September, 1958; he ceased to act on 26th January, 1959, on resumption of duty by Mr. Knox.
353. Mr. S. G. Dark, Executive Officer Class I, was promoted to Senior Executive Officer Class II with effect from 1st April, 1958, and was appointed to the newly-created post of Senior Accountant and Secretary. On his departure on vacation leave on 2nd February, 1959, Mr. N. M. Taylor, Executive Officer Class I, was appointed to act.
354. Mr. W. Dorward, Assistant Trade Officer, was appointed to act as Trade Officer with effect from 20th March, 1959, while Mr. T. N. Leigh-Bennett was on vacation leave.
355. Mr. J. D. McGregor, Assistant Trade Officer, acted as Trade Officer from 17th February, 1959, until 31st March, 1959, during the period that Mr. Manson was absent in Melbourne attending the Interna- tional Trade Fair.
Promotion Prospects for Class V Officers
356. On the creation of a further five posts of Office Assistant it was again found possible to fill them satisfactorily by promoting serving officers.
Office Accommodation
357. Towards the end of the year it became apparent that existing office accommodation would shortly become insufficient and plans were
67
prepared to provide additional space on the second, third and fourth floors of the Fire Brigade Building by enclosing the remaining verandahs. The plans provided for rationalizing the allocation of offices among branches, which had become somewhat scattered.
Revenue
ACCOUNTS AND STORES
to
358. Net revenue collected by the department amounted $115,943,172, an increase of $5,137,048 over the previous year. Details are given in Tables 10 to 12 and in Chapter X.
Expenditure
359. Expenditure from departmental votes amounted to $5,522,265, which was $488,435 under the approved estimates. Personal Emoluments accounted for $4,564,253, an increase of $169,480 over the previous
year.
Treasury and Audit Inspections
360. A treasury inspection team commenced an organization and methods survey of the accounting arrangements in the department during December, and the report on their survey was awaited with interest. Confiscated Goods
361. Close supervision was maintained over the Main Store and associated records in an effort to increase efficiency and reduce the number of errors brought to light by Audit and Treasury inspections. No serious matters were raised during the year under review. The revised procedure for the storage, documentation and disposal of seized and confiscated goods introduced during the previous year continued to work well, and no major accounting difficulties were experienced. In January, however, it became necessary to commence charging other Government departments for the supply of confiscated liquor, tobacco and cigarettes at the authorized rate of retail price less 20%, and the only remaining free issues were to two approved charitable organizations. The quantities of these items sold or given away, and the revenue produced during the year were as follows:
Sold:
Liquor
Cigars
Cigars
Cigarettes 1,660,816 pieces for...
1,809 quarts for... 1,300 pieces
873 lbs.
Total
$17,903
$43,541
$61,444
68
Contributed Free:
Liquor
3,351 quarts valued at Cigarettes 1,285,751 pieces valued at Tobacco
9,180 lbs. valued at
$10,154
...
$23,579
$58,752
Total
$92,485
362. Proceeds of sales are apportioned between the appropriate revenue subheads for the duty concerned and the balance to the Revenue Reward Fund. Total credits during the year collected on 2,056 demand
notes were:
Revenue Head 1, Duties: Subhead 2-Liquor
: Subhead 4--Tobacco
>>
35
57
Revenue Reward Fund
Total
$12,406
$25,148
$23,890
$61,444
Storage
363. The departmental godown at Causeway Bay used for storing seized and confiscated goods was given a further year's lease of life, as there had been delays in the planning of the Urban Services depot which is destined for the Whitfield site. The department, however, continued to seek alternative accommodation to occupy in June, 1959, when the godown would have to be vacated. There were certain difficulties to be overcome in that some categories of the goods stored were classified as dangerous. At the end of March, goods stored in the godown were valued at over $116,000.
General
WELFARE
364. The Assistant Director (Administration), who is the depart- mental welfare officer, was available at all times to officers who wished to discuss with him matters affecting their own or their families' welfare.
Housing of Local Officers
365. The thirty members of the staff who had formed themselves into a Co-operative Building Society in November 1957, continued to proceed with the scheme for their new homes, but there were some unfortunate delays. The building plans were approved in June 1958, but clearance of squatters from the site had not been completely effected by the end of the year. However, there was every indication that site formation work could be commenced early in the new financial year, after which it was hoped there would be no further hold-ups.
69
366. Advances of a month's salary towards the expenses involved were made to six officers moving to new accommodation.
Departmental Quarters
367. The occupants of five flats in Kowloon comprising departmental quarters for non-expatriate Preventive Service officers were required to vacate them by the end of April to enable alterations to the building to be carried out. These alterations were completed in November and three of the flats remaining were re-allocated to the department; three of the former occupants were therefore able to move back. One withdrew because he was a member of a Co-operative Building Society, while the remaining officer was required to seek accommodation elsewhere.
368. During the year, authority was given for a site at Fat Kwong Street, Hung Hom, to be allocated for the forty eight quarters for non- expatriate officers approved in principle two years previously. It was understood that the project was to be handled by a private architect and that sketch plans would be put in hand early in the 1959/60 financial year. In addition, a further eight flats were allotted to the department in the proposed new Magistracy at the Fanling Crossroads, which would be utilized as a mess for the Revenue Sub-Inspectors posted to the Fanling Revenue Station.
Education
369. Assistance was again given to several officers in placing their children in Government schools, and out of seventeen applications forwarded through the department, two were successful. Messengers, office attendants, and office assistants were encouraged to study English at the Evening Institute of the Education Department, and clerical staff to attend classes in shorthand and book-keeping.
Leave
370. Leave rosters for the Preventive Service were, as in the previous year, carefully maintained, and with very few exceptions officers were able to take a minimum of twelve days casual leave during the year. Officers of other grades were as a rule freely granted any leave for which they applied, but staffing difficulties made it impracticable to require them to take all the leave to which they were entitled.
371. There was some indication that the general health of staff had improved with better working conditions. Two officers were admitted to hospital with tuberculosis and were granted sick leave for six to seven months, compared with four during the previous year. Other long
70
absences from duty on medical grounds were attributable to maternity leave, granted to four officers for approximately two months each.
372. Seven male and one female serving officers failed to pass the necessary medical examination for regrading or promotion.
Revenue Inspectors' Mess
373. The Revenue Inspectors' Mess continued to function satisfac- torily throughout the year.
374. Some trouble was experienced in January however when the caterer who had been with the Mess since its inauguration as dismissed by the Mess committee after a series of complaints regarding food and services, and also when it was found that he was heavily in debt to various suppliers and unable to meet his commitments. A new caterer was quickly engaged and it was necessary to discontinue the Mess facilities for only a day or so. A great improvement has since been evident.
375. Finances continued to be in a healthy state, and membership was greatly increased in October with the admission to the Mess of 119 Revenue Sub-Inspectors.
376. A number of successful social functions were held during the year. Two barbecues held at Deep Water Bay, the second of which was subsidized from Mess funds, proved particularly successful.
Canteens
377. Early in the year the former Police departmental quarter on the 6th floor of the Fire Brigade Building was converted into a Canteen for the clerks and related grades employed in the four departments accommodated in the building. Unfortunately, the Canteen did not prove to be as popular as was hoped, and by the end of the year it had become increasingly apparent that its days were numbered. Meanwhile the Revenue Officers' Canteen continued to be fairly well patronized, and renovations to the premises and to the furniture will be put in hand early in 1959/60.
Amenities
378. In addition, alterations were made to the Preventive Service barrack quarters on the 6th floor of the Fire Brigade Building, and as a result washing and changing facilities were considerably improved. Fans, venetian blinds to certain windows, and more suitable lights were also provided at the same time.
71
379. A welcome addition to the amenities at the Fanling Revenue Station were venetian blinds for the windows of the quarters. A new wall and door were also provided in the Revenue Officers' laundry at this station. A water heater was installed at the quarters in the Sham Tseng Revenue Sub-Station.
380. Air-conditioning was installed in the Dutiable Commodities Office and in the Trade Licensing Branch, both situated on the ground floor of the Fire Brigade Building. Most of the equipment was made in Hong Kong, while the compressors and other complex mechanisms were imported from the United States and other sources, the whole being assembled as a packaged unit and installed by the local manufacturer. The quieter, cleaner and cooler atmosphere has added greatly to the comfort of the staff and visitors to the office, contributed noteworthily to efficiency, and possibly also to the health of the staff.
Sports and Recreation
381. The department celebrated Christmas with a children's party on 14th December and a dance on 20th December. About 200 members of the staff and their friends attended the dance which was held in the Revenue Inspectors' Mess. Two hundred and eighty eight children at- tended the party in the grounds and clubhouse of the Indian Recreation Club which were again kindly made available by the Club Committee. 382. The proposal to apply for a sports ground in the Aberdeen area was abandoned due to lack of support. In any case it had not been possible to locate a suitable site.
HONG KONG,
23rd June, 1959.
H. A. ANGUS,
Director of Commerce and Industry.
72
TABLE 1
TOTAL VALUES OF IMPORTS INTO AND EXPORTS FROM
HONG KONG, BY COUNTRIES, 1957 AND 1958
Imports
Exports
Country
1957
1958
% increase or decrease
1957
1958
% increase or decrease
(HK$ Million)
%
(HK$ Million)
%
British Commonwealth
United Kingdom
Malaya
Australia
666.21
530.89
20
336.75
393.24
101.69
102.84
-- 1
372.68
382.23
114.03
112.77
1
65.52
75.94
+++
17
3
16
Central African Federation
East Africa, British
Mauritius
Nigeria
...
South Africa
West Africa, British, n.e.s.
Canada
West Indies, British
Borneo, British
4.53
4.59
15.46
9.39
...
67.35
65.65
31.13
27.28
2.48
6.39
5.92
6.89
0.02
30.88
42.35
55.61
48.25
43.64
30.01
21.27
19.09
51.36
42.96
41.11
51.16
0.29
0.26
24.16
25.80
47.79
34.15
39.05
45.32
...
26
Ceylon
5.39
5.95
16.45
18.82
+1
...
India
89.05
65.82
13.61
9.39
Pakistan...
92.00
33.40
4.32
4.04
Mediterranean Territories, British
0.01
0.15
7.16
5.29
Aden
0.27
0.06
9.66
9.27
Fiji
0.10
0.02
3.04
4.62
New Zealand
4.31
2.52
17.79
19.91
Oceania, British, n.e.s.
1.41
2.41
2.20
2.41
British Commonwealth, n.e.s.
0.22
0.04
0.26
0.37
73
1,304.11
1,059.12
19
1,102.04
1,182.81
+
7
•
74
TABLE 1-Contd.
Imports
Exports
Country
1957
1958
% increase or decrease
1957
1958
% increase or decrease
(HK$ Million)
%
(HK$ Million)
%
Africa
Belgian Congo
0.35
0.56
13.63
8.18
Egypt
10.51
0.06
0.30
0.28
North Africa, French
0.02
0.02
2.32
1.86
75
18
Equatorial & West Africa, French
0.01
39.59
36.72
Madagascar
0.19
0.33
5.16
3.57
Africa, n.e.s.
1.48
2.20
30.14
24.07
...
America
U.S.A.
12.53
3.18
75
91.14
74.68
18
539.04
439.56
18
198.18
326.35
+ 65
Cuba
Haiti
Mexico
0.14
4.37
5.03
3.93
1.38
1.96
0.05
0.12
2.64
2.41
...
Central America, n.e.s.
0.19
0.97
30.28
28.76
23
2
Argentina
•
4.45
1.25
0.43
1.24
Brazil
20.33
12.95
1.06
0.82
Venezuela
0.02
0.01
13.46
15.64
South America, n.e.s.
1.47
...
0.90
11.29
9.72
565.69
460.12
19
263.77
390.83
+
48
TABLE 1-Contd.
Imports
Exports
Country
1957
1958
% increase or decrease
% increase
1957
1958
or decrease
(HK$ Million)
%
alo
(HK$ Million)
%
Asia
China (excluding Formosa)
Indonesia
Japan
Thailand...
Burma
Cambodia
Formosa (Taiwan)
Korea, North
Korea, South
Laos
Macau
Philippines
1,131.10
1,396.92
+
24
123.35
155.76
+ 26
126.25
94.68
25
312.50
210.75
33
763.37
596.99
22
228.26
120.16
+
191.79
160.29
16
188,16
217.01
1 +
47
15
16.88
15.30
49.62
29.97
53.35
50.04
46.31
25.48
...
71.73
49.84
60.60
61.72
0.03
0.03
0.04
21.64
8.23
71.37
52.81
...
0.50.
0.15
68.66
27.01
18
23
42.87
39.90
66.38
57.81
18.23
6.93
72.81
55.73
Vietnam, North...
22.94
13.60
30.49
36.11
Vietnam, South ...
4.36
5.26
33.09
20.93
Middle & Near East Countries
55.33
63.35
31.68
42.37
Asian Countries, n.e.s.
0.01
1.85
1.41
75
2,520.35
2,501.50
1
1,385.16
1,115.06
19
TABLE 1-Contd.
Imports
Exports
Country
1957
1958
% increase or decrease
1957
1958
% increase or decrease
(HK$ Million)
%
(HK$ Million)
Europe
Belgium
117.63
60.08
49
16.04
20.28
+
%
26
Germany (Western)
Switzerland
Austria
Czechoslovakia
Denmark
France
Italy
Netherlands
Norway
Sweden
U.S.S.R.
...
Europe, Eastern, n.e.s. .
European Countries, n.e.s.
159.27
135.15
15
42.03
64.65
+ 54
193.04
130.97
32
3.34
3.90
+ 17
14.43
11.24
0.08
0.15
9.15
4.75
:
8.83
10.20
4.82
5.53
36.98
29.07
12.82
9.90
63.48
55.31
9.10
9.98
86.19
75.95
19
18.09
23.17
+ 20
13.35
:
:
5.47
9.52
9.91
25.64
18.40
...
10.40
17.55
0.11
5.51
:
4.31
...
12.43
8.83
2.75
5.16
76
745.92
549.85
26
128.99
170.18
+ 32
77
TABLE 1—Contd.
Imports
Exports
Country
1957
1958
% increase or decrease
% increase
1957
1958
or decrease
(HK$ Million)
%
(HK$ Million)
%
United States Oceania ...
0.19
0.45
31.34
31.24
...
5
6
Oceania, n.e.s.
0.66
0.37
13.83
11.30
Oceania
Postal packages
0.85
0.81
19.16
19.16
1
5
45.17
42.54
6
12.69
12.69
Total Merchandise...
5,149.45
4,593,73
Il
3,016.27
2,988.80
1
Total Gold and Specie
403.53
257.87
36
408.32
262.02
36
Grand Total
...
5,552.99
4,851.61
13
3,424.59
3,250.82
5
TABLE 2
TOTAL VALUES OF IMPORTS INTO AND EXPORTS FROM HONG KONG, BY COMMODITIES, 1957 AND 1958
Imports
Exports
Commodity
1957
1958
% increase or decrease
% increase
1957
1958
or decrease
(HK$ Million)
%
(HK$ Million)
%
Section 0: Food
Live animals
...
Meat and meat preparations
Dairy products
Fish and fish preparations Cereals
Fruits and vegetables
Sugar and sugar preparations Coffee, tea, cocoa and spices
178.78
231.81
66.83
55.64
100.77
102.40
+1+
30
0.97
2.14
+120
17
8.92
7.44
17
2
14.89
18.18
22
93.79
115.91
24
33.18
45.29
+
36
287.73
335.30
17
44.79
79.04
76
...
233.42
235.15
1
119.15
123.27
3
91.61
89.83
2
54.55
45.48
17
61.69
49.11
20
30.07
20.39
32
Feeding stuffs for animals
8.45
6.13
28
2.45
2.74
+
12
Miscellaneous food preparations
38.33
33.81
12
32.69
30.33
7
1,161.40
1,255.08
+8
341.65
374.31
+ 10
Section 1: Beverages and tobacco
Beverages
Tobacco and tobacco manufactures
78
32.53
27.40
16
11.27
8.76
22
74.05
74.39
9.50
13.39
+
41
106.58
101.79
4
20.77
22.15
+
7
Section 2: Crude materials, inedible, except
fuels
Hides, skins and fur skins, undressed...
13.36
5.48
59
10.59
5.27
50
Oil seeds and oil nuts
Crude rubber, including synthetic
Carried Forward
34.69
29.77
14
18.49
10.42
44
...
18.31
18.61
+ 2
2.37
1.80
24
66.36
53.86
31.45
17.49
79
TABLE 2-Contd.
Imports
Exports
Commodity
1957
1958
% increase or decrease
% increase
1957
1958
or decrease
(HK$ Million)
%
(HK$ Million)
%
66.36
53.86
31.45
17.49
Brought Forward
Section 2: Crude materials, inedible, except
fuels-Contd.
Wood, lumber and cork
76.77
60.95
21
10.80
10.87
+ 1
Pulp and waste paper
3.07
1.68
45
2.28'
1.14
50
...
Textile fibres and waste
309.11
251.80
19
69.22
30.56
56
Crude fertilizers and crude minerals
10.42
9.95
5
4.21
5.88
+
39
Ores and metal scrap
59.70
8.39
86
89.93
41.38
54
Animal and vegetable crude materials...
181.22
151.95
16
114.59
116.28
+ 1
706.66
538.58
24
322.50
223.60
31
Section 3: Mineral fuels, lubricants and
related materials
Mineral fuels, lubricants and related
materials
212.82
194.21
9
5.35
4.85
9
212.82
194.21
9
5.35
4.85
9
Section 4: Animal and vegetable oils and fats
Animal and vegetable oils (not essential
oils), fats, greases and derivatives
89.44
54.73
39
41.57
23.82
43
89.44
54.73
39
41.57
23.82
43
TABLE 2---Contd.
Imports
Exports
Commodity
1957
1958
% increase or decrease
1957
1958
% increase or decrease
(HK$ Million)
%
(HK$ Million)
%
Section 5: Chemicals
Chemical elements and compounds
52.10
...
53.03
Mineral tar and crude chemicals
0.33
0.63
++
91
Dyeing, tanning and colouring materials
48.92
48.73
ས།
2
18.92
19.14
0.15
0.02
49.23
47.55
Medicinal and pharmaceutical products
83.62
96.73
+
16
81.87
85.09
+11+
1
89
3
4
Perfume materials and cleansing
preparations
43.73
40.00
9
23.06
16.21
30
Fertilizers, manufactured
10.40
35.90
+245
10.21
34.23
+ 235
Explosives and miscellaneous chemical
products
78.69
80.87
+
3
21.85
31.09 + 42
317.78
355.89
+
12
205.29
233.32
+ 14
Section 6: Manufactured goods classified chiefly by materials
Leather, leather manufactures and
dressed furs
24.70
22.31
Rubber manufactures
13.89
13.10
11
10
2.04
6
•
5.20
2.85 5.22
+
40
Wood and cork manufactures (excluding
furniture)
12.78
17.25
+
35
4.67
7.48 + 60
Paper, paperboard and manufactures
thereof
130.50
108.32
17
51.60
37.82
|
27
Textile yarn, fabrics and made-up
articles
Non-metallic mineral manufactures
Silver, platinum, gems and jewellery.. Base metals
Manufactures of metals
941.46
732.81
22
...
752.20
666.42
11
94.65
93.37
1
39.99
36.46
9
106.72
109.19
+ 2
30.51
38.02
331.67
199.94
40
106.69
62.62
66.45
63.05
5
122.85
130.01
+1+
25
41
+6
1,722.82
1,359.34
21
1,115.74
986.91
12
80
TABLE 2-Contd.
Imports
Exports
Commodity
Section 7: Machinery and transport
1957
1958
% incrcase or decrease
1957
1958
% increase or decrease
(HK$ Million)
%
(HK$ Million)
%
equipment
Machinery other than electric...
177.83
170.81
4
34.00
39.38
+ 16
Electric machinery, apparatus and
appliances
99.51
105.66
+ 6
37.21
46.59
+ 25
Transport equipment
114.78
77.76
32
36.37
39.84 + 10
392.12
354.23
10
107.58
125.81
+
17
81
Section 8: Miscellaneous manufactured
articles
Prefabricated buildings; plumbing,
heating and lighting fittings
Furniture and fixtures
Travel goods
Clothing
...
Footwear
12.98
...
12.56
4.90
5.92
3.22
3.34
62.14
65.12
9.91
11.87
1++++
3
65.70
53.80
18
21
36.44
34.93
4
4
18.05
16.37
9
5
438.79
525.11
+ 20
20
73.52
100.14
+ 36
Scientific and controlling instruments;
photographic and optical goods;
watches and clocks
238.23
160.18
33
39.14
41.57
+ 6
Miscellaneous manufactured articles,
n.e.s.
107.86
100.95
6
183.37
208.21
+ 14
439.24
359.93
18
855.01
980.14
+
15
Section 9: Miscellaneous transactions and
commodities, n.e.s.
Postal packages, not classified according
to kind
...
19.16
12.69
Live animals, not for food
Gold and specie
0.58
0.80
+
36
0.81
1.21
+
48
403.53
257.87
36
408.32
262.02
36
404.12
277.83
31
409.13
275.92
33
Total
...
5,552.99
4,851.61
13
3,424.59
3,250.82
5
сл
TABLE 3
TOTAL VALUES OF EXPORTS OF PRODUCTS WHOLLY OR PRINCIPALLY
OF HONG KONG ORIGIN, BY COUNTRIES, 1957 AND 1958
Country
1957
1958
% increase or decrease
(HK$ Million)
280.52
328.59
%
+
17
United Kingdom
Other Preference Territories
Borneo, British
11.92
11.95
British Commonwealth, n.e.s.
0.16
0.23
Central African Federation
10.87
6.18
Ceylon
7.13
9.78
Fiji
2.14
3.57
Malaya
97.49
100.07
Mauritius
4.02
4.74
Mediterranean Territories, British
5.81
3.98
New Zealand
11.10
10.04
Oceania, British, n.e.s.
1.18
1.44
West Africa, British, n.e.s.
8.47
6.53
West Indies, British
17.36
18.07
177.65
176.58
Africa
+1++++ | [+1 +
42
43
37
67
3
18
32
10
22
23
1
Africa, n.e.s.
22.62
15.67
31
Belgian Congo...
11.74
6.94
41
East Africa, British
25.39
23.27
8
Egypt
0.09
0.02
81
Equatorial & West Africa, French
36.14
30.39
16
Ghana ...
10.25
8.74
15
Madagascar...
3.65
2.33
36
Nigeria...
27.04
35.37
31
North Africa, French
1.88
0.99
47
South Africa
35.97
21.25
41
174.77
144.97
17
America
Argentina
0.11
0.32
Brazil
0.34
0.58
Canada
22.59
28.39
Central America, n.e.s.
20.71
18.33
...
Cuba
2.56
2.04
Haiti
1.08
1.61
Mexico ...
South America, n.e.s.
U.S.A. ...
Venezuela
1.70
1.38
6.64
4.70
132.93
205.36
9.47
11.26
198.13
273.97
82
+++] [+] [++
+
190
71
26
11
21
49
19
29
54
19
38
Country
TABLE 3-Contd.
Asia
Aden
Asian Countries, n.e.s.
Burma
Cambodia
...
China (excluding Formosa)
Formosa (Taiwan)
India
Indonesia
Japan
Korea, North
Korea, South
Laos
Macau
Middle & Near East Countries
Pakistan
Philippines
Thailand
Vietnam, North
Vietnam, South
Europe
Austria...
Belgium
Czechoslovakia
Denmark
France
Germany (Western)
Italy
Netherlands
Norway
Sweden...
Switzerland
U.S.S.R.
Europe, Eastern, n.e.s.
European Countries, n.e.s.
Oceania
Australia
Oceania, n.e.s.
United States Oceania
Total
+
100
1957
1958
% increase or decrease
(HK$ Million)
%
7.05
6.84
3
1.34
0.80
40
11.84
6.22
47
4
...
6.94
3.40
4
51
2.79
1.29
54
2.18
1.35
38
2.20
0.64
71
82.77
54.45
34
6.70
7.31
...
...
0.73
2.68
25.15
7.94
1 +
+
9
264
7.09
6.09
17.21
19.58
1.35
1.49
40.22
24.01
43.25
43.02
0.03 1.92
0.17
2.09
1 │++
260.76
189.37
68
14
14
10
4.0
1 460
9
27
..
::
0.01
0.11
3.23
3.65
++
+ 1,727 13
3.05
2.92
3.21
2.76
21.25
41.59
1.51
3.63
6.76
10.01
4.14
6.28
7.28
12.61
0.71
1.52
++++++11
4.
14
96
141
48
52
73
114
0.93
1.52
...
+
64
52.07
86.58
+
66
35.64
39.05
7.92
6.09
14.51
15.08
58.07
60.22
+1+
+
10
23
4
4.
1,202.01
1,260.28
+
5
83
TABLE 4
TOTAL VALUES OF EXPORTS OF PRODUCTS WHOLLY OR PRINCIPALLY OF HONG KONG ORIGIN, BY COMMODITIES, 1957 AND 1958
Commodity
1957
1958
% increase or decrease
(HK$ Million)
%
Clothing
387.38
436.97
...
Outerwear, not embroidered ...
124.04
190.99
Shirts
83.25
77.80
Gloves and mittens
58.05
52.36
Cotton singlets
36.93
31.81
│11+
54
7
10
14
Underwear and nightwear, knit or made of
knitted fabrics
30.41
30.55
Outerwear, knit or made of knitted fabrics...
9.84
15.84
Stockings and hose
13.30
10.81
...
A
Clothing of impermeable materials
11.09
9.40
11+
61
19
15
Articles of clothing, embroidered, n.e.s. Outerwear, embroidered
Underwear and nightwear, embroidered
Textiles
Cotton piecegoods
Cotton yarns
*
Bed linen, table linen and toilet linen
(including towels), embroidered
Towels, not embroidered
7.74
7.68
1
8.74
6.79
22
4.00
2.96
26
367.31
351.31
-
230.64
230.06
108.66
90.61
15.64
15.90
12.36
14.74
+4
++
17
2
19
Miscellaneous manufactured articles
109.56
122.96
Toys and games
52.42
65.17
+ 24
Buttons and studs
15.43
15.44
Plastic articles...
11.02
11.51
...
Articles of basketware or of wickerwork, n.e.s.
10.87
11.19
Umbrellas, walking sticks and similar articles Vacuum flasks and jugs, complete
11.09
9.90
7.82
7.92
Matches
Footwear ...
0.91
1.84
++1++
4
3
11
1
+ 101
71.89
97.73
Manufactures of metals ...
74.99
75.78
Enamelled household utensils
66.02
68.27
Aluminium household utensils
8.96
7.51
+
+1
36
|
3
16
Plumbing, heating and lighting fittings
55.41
43.46
Electric torches
41.26
32.11
Metal lanterns
14.15
11.35
1220
Furniture and fixtures
35.41
33.19
A
Furniture of vegetable plaiting materials
25.12
23.14
Wood furniture and fixtures
10.29
10.05
* 2
8
2
84
Commodity
TABLE 4—Contd.
1957
1958
% increase or decrease
(HK$ Million)
%
Fruits and vegetables
Preserved fruits
Preserved ginger
Unfermented fruit juices
24.28
26.03
13.97
15.78
9.99
10.01
0.32
0.24
+
13
25
Jams and fruit jellies
Travel goods, handbags and similar articles
18.05
16.37
Travel goods
11.26
10.31
8
Handbags, wallets, purses and similar articles
6.79
6.06
11
Electric machinery, apparatus and appliances
15.26
15.96
Torch batteries
11.01
11.06
Torch bulbs
4.25
4.90
+ 15
Dyeing, tanning and colouring materials
16.00
14.77
Paints, enamels and mastics
13.03
11.84
Lacquers and varnishes
2.97
2.92
111
Non-metallic mineral manufactures
Cement...
Vacuum flasks (glass inners only)
Base metals
Iron and steel bars
Tobacco and cigarettes
Metalliferous ores and metal scrap
Iron ore
Tungsten ore
Fish and fish preparations
Fish in airtight container
6.32
7.66
5.81
6.80
0.51
0.85
++
1583
17
68
10.84
5.71
+
10.84
5.71
47
:
1.99
5.28
+ 165
4.01
4.19
3.98
4.12
0.03
0.07
++
4
+107
2.18
1.81
2.18
1.81
17
Beverages
1.01
0.99
Non-alcoholic beverages
0.99
0.93
6
Beer
0.02
0.07
+ 299
Animal and vegetable crude materials, inedible
0.11
0.09
Seagrass
0.11
0.09
-
12
Total
...
1,202.01
1,260.28
+
85
сл
5
TABLE 5
VOLUME OF EXPORTS OF SELECTED PRODUCTS WHOLLY OR PRINCIPALLY OF HONG KONG ORIGIN, 1957 AND 1958
Commodity
% increase
Unit
1957
1958
or
decrease
%
Cotton piecegoods
Sq. Yd.
196,329,265 220,372,656
Cotton yarns
Lb.
Fruits, preserved
Lb.
33,121,206 30,639,700
12,190,492 13,559,923 + 11
+ 1
12
7
Lacquers, varnishes and
paints
Lb.
12,679,862 11,453,444
10
Ginger, preserved
Lb.
8,224,046 9,594,871
Torch bulbs
Doz.
...
6,548,666
6,858,925
++
17
5
СЛ
Torch batteries
Footwear
Doz.
5,253,760
5,263,342
Doz. Pairs
1,867,136
2,759,849 +
48
Electric torches
Doz.
...
2,996,024
2,408,559
20
Iron ore...
Cwt.
2,077,522
2,169,846 + 4
Cotton singlets...
Doz.
2,330,959
1,960,826
16
Shirts
Doz.
1,941,826
1,802,186
7
Towels, not embroidered
Doz.
1,195,819
1,478,904 +
24
Stockings and hose
Doz.
1,826,737
1,404,576
23
Cigarettes
Lb.
435,727 1,288,172 + 196
Cement
Cwt.
861,240
1,212,628
++
Fish in airtight containers
Lb.
1,036,754
834,427
41
20
Umbrellas, parasols, walking
sticks and similar articles
Doz.
426,571
470,472
Vacuum flasks, complete
Doz.
192,570
194,995
++
10
H
Non-alcoholic beverage
Imp. Gal.
196,287
186,680
Iron and steel bars
Cwt.
234,807
173,558
Lanterns, metal
Doz.
151,366
135,625
―
5
26
10
Vacuum flasks (glass inners
only)...
Doz.
++
26,423
42,558
+61
Unfermented fruit juices
Imp. Gal.
49,568
24,318
51
Matches...
Case
6,162
11,867
+ 93
Beer
Imp. Gal.
2,255
9,096
+ 303
Seagrass
Cwt.
1.969
1,587
19
Jams and fruit jellies...
Lb.
1,444
343
76
Tungsten ore
Cwt.
75
300
+ 300
86
TABLE 6
IMPORTS AND RE-EXPORTS
(1957 AND 1958)
MARINE DEPARTMENT LIBRARY
1957
1958
Imports
Re- exports
Difference Imports
Re- exports
Difference
(HK$ Million)
(HK$ Million)
Food
Live animals
178.78
0.97
177.81
231.81
2.14
229.67
Meat and meat preparations
66.83
8.92
57.91
55.64
7.44
48.20
Dairy products
100.77
14.89
85.88
102.40
18.18
84.22
•
Fish and fish preparations
Cereals
Fruits and vegetables
93.79
31.00
62.79
115.91
43.48
72.43
287.73
44.79
242.94
335.30
79.04
256.26
233.42
94.87
138.55
235.15
97.24
137.91
Sugar and sugar preparations
91.61
54.55
37.06
89.83
45.48
44.35
Coffee, tea, cocoa and spices
61.69
30.07
31.62
49.11
20.39
28.72
Feeding stuffs for animals
8.45
2.45
6.00
6.13
2.74
3.39
Miscellaneous food preparations
38.33
32.69
5.64
33.81
30.31
3.50
1,161.40
215.20
846.20
1,255.08
346.44
908.64
Beverage and Tobacco
Beverages...
32.53
10.26
22.27
27.40
7.77
19.63
Tobacco and tobacco manufactures
74.05
7.51
66.54
74.39
8.11
66.28
106.58
17.77
88.81
101.79
15.88
85.91
Crude Materials, Inedible, Except Fuels
Hides, skins and fur skins, undressed...
13.36
10.59
2.77
5.48
5.27
0.21
Oil seeds and oil nuts
34.69
18.49
16.20
29.77
10.42
19.35
Crude rubber, including synthetic
18.31
2.37
15.94
18.61
1.80
16.81
Wood, lumber and cork...
76.77
10.80
65.97
60.95
10.87
50.08
Pulp and waste paper
3.07
2.28
0.79
1.68
1.14
0.54
Textile fibres and waste
309.11
69.22
Crude fertilizers and crude minerals
10.42
4.21
239.89 6.21
251.80
30.56
221.24
9.95
5.88
4.07
Ores and metal scrap
59.70
85.92
Animal and vegetable crude materials..
181.22
114.48
26.22 66.74
8.39
37.19
28.80
151.95
116.19
35.76
706.66
318.36
388.30
538.58
219.32
319.26
Mineral Fuels, Lubricants and Related
Materials
Mineral fuels, lubricants and related
materials
212.82
5.35
207.47
194.21
4.85
189.36
212.82
5.35
207.47
194.21
4.85
189.36
Animal and Vegetable Oils and Fats
Animal and vegetable oils (not
essential oils), fats, greases and derivatives
89.44
41.57
47.87
54.73
23.82
30.91
89.44
41.57
47.87
54.73
23.82
30.91
Chemicals
Chemical elements and compounds Mineral tar and crude chemicals Dyeing, tanning and colouring materials
52.10
18.92
33.18
53.03
19.14
33.89
0.33
0.15
0.18
0.63
0.02
0.61
48.92
33.23
15.67
48.73
32.78
15.95
Carried forward
101.35
25.30
49.03
102.39
51.94
50.45
87
TABLE 6—Contd.
1957
1953
Imports
Re- exports
Difference Imports
Re-
Difference
exports
(HK$ Million)
(HK$ Million)
Brought forward
101.35
52.30
49.03
102.39
51.94
50.45
Chemicals, Contd.
Medicinal and pharmaceutical products
83.62
81.87
1.75
96.73
85.09
11.64
Perfume materials and cleansing
preparations
43.73
23.06
20.67
40.00
16.21
23.79
Fertilizers, manufactured
10.40
10.21
0.19
35.90
34.23
1.67
Explosives and miscellaneous chemical
products
78.69
21.85
56.84
80.87
31.09
49.78
317.78
189.29
128.49
355.89
218.56
137.33
Manufactured Goods Classified Chiefly
by Materials
Leather, leather manufactures and
dressed furs
24.70
2.04
22.66
22.31
2.85
19.46
Rubber manufactures
13.89
5.20
8.69
13.10
5.22
7.88
Wood and cork manufactures
(excluding furniture).
12.78
4.67
8.11
17.25
7.48
9.77
Paper, paperboard and manufactures
thereof
130.50
51.60
78.90.
108.32
37.82
70.50
Textile yarn, fabrics and made-up
articles
941.46
384.89
556.57
732.81
315.11
+
417.70
Non-metallic mineral manufactures
94.65
33.67
60.98
93.37
28.80
64.57
Silver, platinum, gems and jewellery Base metals
106.72
30.51
76.21
109.19
38.02
71.17
331.67
95.85
235.82
199.94
56.91
143.03
Manufactures of metals..
66.45
47.91
18.54
63.05
54.23
8.82
1,722.82
656.34 1,066.48
1,359.34
546.44
812.90
Machinery and Transport Equipment
Machinery other than electric ...
177.83
34.00
143.83
170.81
39.38
131.43
Electric machinery, apparatus and
appliances
99.51
21.95
77.56
105.66
30.63
75.03
Transport equipment
114.78
36.37
78.41
77.76
39.84
37.92
392.12
92.32
299.80
354.23
109.85
244.38
Miscellaneous Manufactured Articles
Prefabricated buildings; plumbing,
heating and lighting fittings...
12.98
10.29
2.69
12.56
10.34
2.22
Furniture and fixtures
4.90
1.03
3.87
5.92
1.74
4.18
Travel goods
3.22
3.22
3.34
3.34
Clothing
62.14
51.41
10.73
65.12
88.14
23.02
Footwear
9.91
1.63
8.28
11.87
2.41
9.46
Scientific and controlling instruments;
photographic and optical goods; watches and clocks
238.23
39.14
199.09
160.18
41.57
118.61
Miscellaneous manufactured articles,
n.e.s.
107.86
73.81
34.05
100.95
85.25
15.70
439.24
177.31
261.93
359.93
229.45
130.48
Miscellaneous Transactions and
Commodities, n.e.s.
Postal packages, not classified
according to kind
19.16
12.69
6.47
Live animals, not for food
0.58
0.81
0.23
0.58
0.81
0.23
0.80
19.96
1.21
0.41
13.90
6.06
Total
5,149.45 1,814.26 3,335.19
4,593.73 1,728.52 2,865,21
88
89
TABLE 7
ORGANIZATION OF THE COMMERCE AND INDUSTRY DEPARTMENT
DIRECTOR OF COMMERCE AND INDUSTRY
ADMINISTRATION DIVISION
CONTROL DIVISION
DEVELOPMENT DIVISION
Accounts and Administration
Branch
--Trade Licensing Branch
Accounts and Stores Section
Administration Section
Statistical Branch
Trade Statistics Section
Other Statistics Section
Overseas Offices
London Office Tokyo Office
Import Licensing Section Export Licensing Section
Dutiable Commodities Branch
Licensing and Permit Section
Supplies Branch
-Preventive Service
Headquarters Section Investigation Bureau Training Section
Marine Section
Land Section
New Territories Section
Prosecution Section
Special (Narcotics) Section
Industrial Development and
Certification Branch
Certification Section
Commonwealth Preference
Section
Industry Inspection Section of
the Preventive Service
Trade Promotion Branch
Trade Publications Section Trade Enquiries Section
90
TABLE 8
CERTIFICATION OF HONG KONG PRODUCTS
1957/58
1958/59
Type of Certificate
Factories registered on 31.3.58
Certificates issued
Value of Goods
Factories registered on 31.3.59
Certificates issued
Value of Goods
Commonwealth Preference Certificates
Standard Certificates of Origin
Comprehensive Certificates of Origin:
Commercial
Tourist
Gift
Sample
-
69,602 $139,690,637
58,663
$127,068,963
3,239
104,091
487,729,247
3,612
103,031
482,109,359
21,040
32,115
31,101
30,313
158,028,666
268,233,794
8,457
12,205
1,390
2,146
235,681 785,448,550
238,473
877,412,116
TABLE 9
NET REVENUE COLLECTED FROM ALL SOURCES
Approved
Actual Revenue
Heads and subheads of Revenue
Estimates
1958/59
1958/59
1957/58
$
$
$
Duties:
Hydrocarbon oils imported
27,000,000
Intoxicating liquor imported
15,000,000
28,621,221 26,145,514 16,044,963
14,222,180
Liquor other than intoxicating liquor
imported
650,000
Tobacco imported
47,000,000
597,161 46,670,892
604,375 45,163,230 11,350,000 11,340,311 11,745,977
Liquor locally manufactured
Proprietary medicines and toilet prepara-
tions
Table waters
Internal Revenue :
Stamp duties
Fines, forfeitures and licences:
Fines
•
•
5,250,000 5,335,062 5,188,186 2,600,000 2,768,696 2,653,268
750,000
740,235
727,264
10
Forfeitures
1,000,000
1,312,659
502,795
Hydrocarbon oils
38,000
40,370
39,752
Liquor
960,000
1,110,519
1,045,444
Proprietary medicines and toilet prepara-
tions
140,000
116,307
133,000
Tobacco
370,000
406,569
378,021
Miscellaneous (table waters)
7,000
8,548
6,230
Fees of court or office:
Denaturing
350,000
Factory inspection and supervision
200,000
J
337,324 188,102
330,860
Official certificates
4
* 1,600,000
* 12,406
1,473,240
Departmental services and supervision
6
10
Overpayments in previous years
6,941
30
Anti-narcotic smuggling guards
8,000
11,440
12,014
Bonded warehouse supervision
14,400
24,744
14,400
Loss of, or damage to Government property. Officials and others for light, fuel, etc. in
29
51
Government buildings
113
Advertisement revenue
A
Publications
...
120,000 1,000
Miscellaneous
177,276 1,443 73,825
127,299
1,432 291,552
Total
114,408,400
115,943,172 | 110,806,124
* A charge is no longer made for certificates of origin and similar certificates, but applications for such certificates are required to bear postage stamps. There is consequentially an increase in revenue from postage stamps, which was not less than $1,599,205.
91
TABLE 10
DUTY FROM DUTIABLE COMMODITIES (GROSS)
1957/58
1958/59
Type
Unit
Quantity Duty
$
Quantity
Duty
$
Liquor :
Whisky
Gallons
Brandy
-
99
Gin
...
58,382 3,107,081 64,265 3,880,615 22,319
63,968
3,404,662
71,016 4,293,668
1,225,158
24,838
1,368,031
Wines
59
Beer
58,587 3,095,392
1,331,808
54,504
1,247,711
4,821,684
3,003,706
4,649,358
Other European type
"
9,974
564,289
9,450
532,778
Chinese type :
(a) Locally Distilled
(b) Imported
Spirituous liquor other
than intoxicating liquor Methyl alcohol
1,541,617
*
9,600,874
1,477,215
9,140,107
...
77
181,663
1,598,664
338,370
2,858,903
**
..
97
Total...
Tobacco :
Cigarettes and Cigars
63,422 358
6,427
5,095,979 | 26,788,860
652,260
61,238
646,613
608 10,111
5,104,913 | 28,151,942
Lbs.
3,871,103 | 22,196,497
3,765,317 | 21,732,174
European Smoking To-
bacco (including snuff)
Chinese prepared Tobacco Tobacco leaf
Total...
Hydrocarbon Oils:
41.210
99
6,506
172,050 19,518
44,055
185,215
7,792
23,377
...
Light Oils
6,997,979 25,625,726
10,916,798 48,013,791 11,985,636 51,884,336
Imp. Gals. 15,506,519 12,405,071 | 16,541,355 | 13,233,054
Tons
64,941 375,135
Imp. Gals. 19,556,178
2,823,678 69,194 3,161,006 9,003,240 425,994 | 10,223,817 2,060,403 20,918,555 2,192,016
8,168,472 | 29,943,570
Diesel Oils
Furnace Oils
Other type
..
Total...
Toilet Preparations
Proprietary Medicines
26,292,392
28,809,893
3,085,363
3,186,998
2,111,934
2,159,608
Table Waters
Gallons 5,527,645
2,653,271 5,768,118
2,768,697
Total...
7,850,568
8,115,303
Refund and Drawback
Intoxicating liquor
Spirituous liquor other than
intoxicating liquor Toilet Preparations and Proprietary Medicines Table Waters
Tobacco Hydrocarbon Oils
162,016
135,379
54,312
34,127
9,111
11,545
3
1
2,850,561
5,213,444
146,878
188,672
Total...
92
22
3,222,881
5,583,168
TABLE 11
REVENUE FROM DUTIABLE COMMODITIES LICENCES-1958/9
No. of Licences Issued
Importers':
Liquors
Tobacco
Hydrocarbon oils
T.P. & P.M.
Table Waters. Methyl alcohol
Dealers' :
...
...
European-type liquor Chinese-type liquor Spirituous liquor Tobacco
Hydrocarbon oils T.P. & P.M. Methyl alcohol
Retailers' :
Chinese-type liquor
Spirituous liquor Tobacco
T.P. & P.M. ...
Hydrocarbon oils
Methyl alcohol
Manufacturers':
Liquor (Distillers 20)
1)
...
Tobacco
(Brewer
T.P. & P.M.
Table Waters
Warehouses':
Liquor
:
Tobacco
Hydrocarbon oils
T.P. & P.M.
Table Waters
Methyl alcohol
Ship and Harbour vessel Licences
...
...
Revenue
$
538
80,700.00
H
99
14,850.00
204
30,600.00
474
22,740.00
22
2,200.00
18
180.00
Licence fees for persons importing for own use
Total
93
297
445,500.00
930
471,450.00
595
17,850.00
224
***
67,200.00
366
3,660.00
713
7,130.00
18
180.00
104
14,475.00
1,856
6,882
65,050.00 306,560.00
111
1,974
1,110.00 46,040.00
5
50.00
21
2,725.00
8
2,400.00
250
37,500.00
24
4,500.00
5
3,000.00
6
..
3,600.00
9
3,150.00
254
•
2,540.00
14
140.00
6
60.00
918
5,363.00
16,268.51
$1,678,771.51
TABLE 12
CONFISCATIONS UNDER THE DUTIABLE COMMODITIES
AND DANGEROUS DRUGS ORDINANCES
Commodity
1957/58
1958/59
Unit
Quantity
Quantity
:
...
Tobacco :
Chinese prepared tobacco
Lbs.
20,803
61,640
Foreign cigarettes
Lbs.
1,367
1,147
Macau cigarettes
Lbs.
3,932
6,376
Local cigarettes
Tobacco stems Cigars
Cut tobacco
Tobacco leaf
Tobacco dust
Liquor:
European type liquor Chinese type liquor
Alcohol
Fermenting material
Illicit stills
Lbs.
199
Lbs.
19
13,560
Lbs.
50
128
Lbs.
11
...
Lbs.
38
Lbs.
40
Gals.
519
683
Gals.
3,047
4,311
...
Gals.
154
21
Gals.
29,822
28,235
Nos.
721
721
Beer
Gals.
355
38
Adulterated liquor
Gals.
18
•
Proprietary medicines & Toilet Preparations:
Miscellaneous toilet preparations
Pkts.
3,590
3,588
Chinese medicines
Pkts.
13,507
9,060
Foreign medicines
Pkts.
150
502
Dangerous Drugs :
Raw Opium
Lbs.
275
1,472
Prepared Opium
Lbs.
238
59
Diacetylmorphine Hydrochloride
Gms.
2,880
1,199
Heroin Pills
Gms.
20,412
1,730
Morphine Hydrochloride
Gms.
35,579
1,231
Morphine
Gms.
1,497
9,652
Opium Dross
Lbs.
5
.39
...
Barbitone
Crude Morphine
Diacetyl Morphine
Gms.
131
Gms.
1,821
Gms.
1,075
94
TABLE 13
MAJOR CONFISCATIONS UNDER OTHER LEGISLATION
Legislation
Importation & Exportation
Ordinance & Regulations thereunder
Merchandise Marks Ordinance
Penicillin Ordinance
1958 / 59
Commodity
Unit Quantity
Acetic Anhydride
Carboys
200
Gold
Taels
3,880
Cough syrups
Bots.
14
Multivitamin tablets
Bots.
8
Brylcream
Jars
6
Adulterated milk
Bots.
208
Penicillin substances
Pkts.
129
Pharmacy & Poisons Ordinance
Procaine Hydrochloride
Pkts.
5
95
Directorate
TABLE 14
DISTRIBUTION OF STAFF
Development Division
Overseas Trade Relations Branch
Trade Promotion Branch
Industry and Certification Branch
:
Certification Section ...
***
Commonwealth Preference Section... Industry Inspection Section, P.S.
Control Division
Trade Licensing Branch
Import Licensing Section
Export Licensing Section
Supplies Branch
Dutiable Commodities Branch
Licensing and Permit Section Excise Section, P.S....
Preventive Service
Headquarters Section
Marine Section
Land Section....
New Territories Section
Special (Narcotics) Section
Administration Division
Overseas Offices
London Office
Tokyo Office
:
:
:
+
++
Statistical Branch
Accounts and Administration Branch
Accounts and Stores Section
Administration Section
Total...
:
31.3.59
31.3.58
6
6
6
6
1
1
1
Ι
11
11
12
12
คง
2
2
42
35
5
5
38
87
39
81
:
1
2
9
8
22
32
18
28
52
52
48
48
1
1
28
26
38
67
43
70
4
4
60
71
59
80
71
71
36
34
176 406
24
284
:
7
6
8
15
8
14
59
59
58
58
13
7
36
49
29
36
785
638
The distribution of posts as between branches at 31st March, 1958 has been re-arranged to show more clearly additions to and reductions in the establishment of branches at 31st March, 1959.
96
HONG KONG
Code No.: 3026-59