工商業管理處年報 Commerce and Industry Department Annaul Report 1959-1960





HONG

Library Book No:35406

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1113

Library Copy No: DR

 

ANNUAL

Date 7 DEC 1960

1113

DEPARTMENTAL

REPORTS

KONG

1959-60

PRICE: $5.50

DIRECTOR OF

COMMERCE AND INDUSTRY

-4

Library Book No.351.06

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF

COMMERCE AND INDUSTRY

FOR THE

FINANCIAL YEAR 1959-60

PRINTED AND Published BY W. F. C. JENNER, Government PRINTER

AT THE GOVERNMENT PRESS, JAVA ROAD, HONG KONG

1113

HK

574 CÙM 66

1113

MARING

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).

Chapter

CONTENTS

I. THE COLONY'S TRADE IN 1959

General

Total Exports

Exports of domestic produce and manufactures

Re-exports.

Imports

Principal Trading Partners.

II. GENERAL Review of DEPARTMENTAL ACTIVITIES

General

Overseas Trade Relations Branch

Export Promotion Branch.

Overseas Offices

Industry Branch

Certification Branch

Paragraphs

1 2

-

3 5

-

6

-

11

12

13

21

22 - 28

29 - 31

32

33 - 36

37 - 40

41 - 43

44

46

Trade Licensing Branch

Supplies Branch.

Dutiable Commodities Branch

Statistical Branch

The Preventive Service

Accounts and Administration Branch.

Legislation

The Trade and Industry Advisory Board .

Public Relations

47 48

49

-

50 - 51

52

T

53

54 - 57

58 - 60

61 - 62

63 - 71

72

i

Chapter

III. OVERSEAS TRADE RELATIONS BRANCH

General

The General Agreement on Tariffs and Trade The European Free Trade Association and

The European Economic Community Cotton Textile Agreement with Burma Cotton Textile Agreement with Indonesia. Obstacles to Free Trade

United Kingdom

France and Her Overseas Territories The Benelux Countries.

Switzerland

The Federal Republic of Germany United States of America

Canada

Commonwealth of Australia

New Zealand.

Union of South Africa

East African Territories.

Federation of Rhodesia and Nyasaland Belgian Congo

Thailand

Paragraphs

73 75

-

76 - 77

78

79

80 - 82

83

84

85 - 87

88

89

90

91 - 95

··

96 - 97

98

99

100

101

102 - 103

104

105

106 - 107

108

Complaints under the Merchandise Marks

Ordinance

Official Exchange

IV. EXPORT PROMOTION BRANCH

Overseas Activities-Vienna International

-Trade Mission to West

Trade Fairs in 1960/61

Trade Fair

Africa

Visiting Trade Mission

Miscellaneous

C.I.F.

-Trade Bulletin

Trade Publications-C.I.F. Directory

Departmental Library

ii

109 - 110

111

113

114

-

115 116

117 - 119

120 - 124

125 - 131

132

Chapter

V. OVERSEAS OFFICES

London Office

Tokyo Office

Sydney Office

VI, INDUSTRY BRANCH

General

Federation of Industries Management Training Local Exhibitions

Industrial Development Land for Industry Industrial Surveys

Production Statistics

Factory Registration.

VII. CERTIFICATION BRANCH

General

Legislation

Registration of Factories

Inspection of Factories and Goods

Changes in Certification Requirements of

Various Territories

Standard Certificates of Origin. Commonwealth Preference Certificates Comprehensive Certificates of Origin.

Miscellaneous Certificates.

Fees.

Enforcement

VIII. TRADE LICENSING BRANCH

General

Paragraphs

133 - 148

·

149 165

-

166

167 - 169

170 - 172

173 - 174

175 - 178

179 - 197

198 - 206

·

207 - 211

+

212

213

214

*

215

216 219

-

220 222

-

+

223 - 230

231

232 - 236

237 - 241

242 - 243

244

245 - 246

247 - 249

Import Licensing

250 - 253

Export Licensing

254 - 256

Export of cotton manufactures to the

United Kingdom

iii

257 - 261

Chapter

IX. SUPPLIES BRANCH

Reserved Commodities:

Rice

Frozen Meat

Coal

Firewood

Foodstuffs

Paragraphs

262 - 265

266 268

-

269

·

270 - 272

Accounts

X. DUTIABLE COMMODITIES BRANCH

General

·

Revenue from Duties.

Revenue from Licences

XI. STATISTICAL BRANCH

General

Trade Statistics.

273

274

275 - 279

280 281

-

282 - 284

285 - 287

288 - 291

Statistics of Trade by Parcel Post Mechanization

292 - 295

295 - 300

Retail Price Index

Assistance to other Departments

XII. THE PREVENTIVE SERVICE

General

301 - 303

304

Organization

Training

Discipline

Searches

Dutiable Commodities

Narcotics

305 - 306

307

308 - 311

312

313

314

316

-

317 325

326 - 331

332

333

Strategic Commodities

Certificates of Origin.

Emergency (Agricultural Poisons) Regulations. 334 - 335

Merchandise Marks

Bullion

Court Actions

iv

336

337

338 339

-

Chapter

XIII. LEGISLATION

XIV. ACCOUNTS AND ADMINISTRATION BRANCH

General

Office Accommodation

Building Programme .

Paragraphs

340 - 349

350 - 351

352 - 355

356 - 359

Staff:

Establishment

Retrenchment

360

361 - 362

Recruitment and Training

363 - 365

Preventive Service .

366 - 367

Staff Changes .

368 - 384

Promotion prospects for Class V Officers

385 - 386

Accounts and Stores :

Revenue.

. 387

Expenditure

388

Treasury and Audit Inspections

389 - 390

·

Confiscated Goods.

Welfare:

General

Housing of Local Officers

Departmental Quarters

Education

391 394

-

395 - 396

397 - 399

400 - 403

404

405 - 407

408

410

411

412

413 416

-

·

417 419

-

Leave

Revenue Inspectors' Mess

Canteens

Amenities

Sports and Recreation

V

Table

1.

2.

༣.

4.

5.

LIST OF TABLES

Total values of imports into and exports from Hong Kong, by countries, 1958 and 1959 .

Total values of imports into and exports from Hong Kong by Sections and Divisions of the Standard International Trade Classification, 1958 and 1959

Values of exports of products of Hong Kong

origin by commodities, 1958 and 1959

Volume of exports of selected products of Hong

Kong origin, 1958 and 1959

Quantities and values of selected items of re- export with the corresponding import figures, 1959

·

Page

(Ch. I) 79

(Ch. I) 85

(Ch. I)

89

(Ch. I) 91

(Ch. I)

92

6.

End-use analysis of imports, 1959 .

(Ch. I)

94

7.

Organization of the Commerce and Industry

Department

(Ch. II)

96

8.

Certification of Hong Kong products

(Ch. VII)

97

9.

Net revenue collected from all sources

(Ch. II)

98

10.

Duty from Dutiable Commodities (Gross)

(Ch. X)

99

11.

Revenue from Dutiable Commodities licences,

1959/60

(Ch. X)

100

12.

Confiscations under the Dutiable Commodities

and Dangerous Drugs Ordinances

(Ch. XII)

101

13.

Major confiscations under other legislation,

1959/60

(Ch. XII)

102

14.

Distribution of staff

(Ch. XIV)

103

vi

I. THE COLONY'S TRADE IN 1959

GENERAL

THE value of the Colony's external trade increased steadily throughout 1959, and the values of both imports and exports were substantially greater than in 1958. The combined value of imports and exports in 1959 was $8,226.91 million, an increase of $644.38 million or 8.5% over the 1958 figure of $7,582.53. Cargo tonnages by all means of transport rose from 7,376,471 in 1958 to 7,551,996 in 1959.

2. The year 1959 has thus been one of economic growth and in general can be regarded as a successful one by merchants and indus- trialists. Prices have remained fairly stable, wages have increased, and order books have remained full.

TOTAL EXPORTS

3. The general expansion in world trade in 1959 is reflected in a rise of 10% in the value of Hong Kong's total exports during the year compared with 1958, from $2,988.50 million to $3,277.54 million. The table below records the percentage share of these total exports taken by the main regions of the world, and clearly illustrates the position of the Commonwealth as the best and most stable customer, and the move- ment away from Asia toward the countries of the west. The fall in trade with Asia would have appeared even greater had it not been for the re-growth of exports to Japan in 1959.

Percentage Share

of value of total exports

British Commonwealth

Asia America

Europe

Africa

Other

1958

1959

40%

40%

37%

29%

13%

20%

6%

7%

2%

2%

2%

2%

The direction and composition of trade are recorded in Tables 1 and 2, in which comparisons are made with 1958 where possible.

4. In terms of value, 70% of total exports in 1959, and 66% in 1958, were concentrated on (a) 'manufactured goods classified chiefly by

1

material' (28% in 1959, 33% in 1958) and (b) 'miscellaneous manu- factured articles' (42% in 1959, 33% in 1958). Within these sections, 'textile yarn, fabrics, and made-up articles' and 'clothing' were of the greatest importance.

5. In 1959 the total exports of the Colony were, for the first time, completely separated for statistical purposes into exports of local produce and manufactures on the one hand and re-exports on the other. A striking result has been to show that exports of local produce and manufactures account for some 70% of the value of total exports. The division of total exports into exports and re-exports for 1959 may be seen in Tables 1 and 2; since in no previous year has such a complete breakdown been made, it is not possible to present a full comparison with 1958, but such comparison as is possible for certain items of exports is shown in Tables 3 and 4.

EXPORTS OF DOMESTIC PRODUCE AND MANUFACTURES

6. In 1959 exports of the produce and manufactures of Hong Kong accounted for some 70% of total exports and were valued at $2,282.13 million.

7. Tables 3 and 4 record a more detailed analysis of the composition of this trade than the main breakdown by divisions of the Standard International Trade Classification shown in Table 2. The direction of the trade is shown in the second last column of Table 1.

8. Textiles and clothing have remained the main items of export of local manufacturers and in 1959 comprised 53% by value of all exports of local manufacture. The most valuable items of clothing were slacks, shorts, jeans, trousers, overalls, and pinafores; shirts; women's and girls' blouses and jumpers; and gloves and mittens. Exports of all locally manufactured clothing during 1959 were valued at $793.32 million. Exports of cotton piece goods and cotton yarn were valued at $227.05 million and $87.46 million respectively. Other items of importance were plastic toys and dolls, enamelled household utensils, artificial flowers, footwear, steel scrap, and electric torches.

9. These local products were exported mainly to the United States, the United Kingdom, and Malaya which three countries together took 53% by value of all exports of local products.

2

10.

The principal markets for the Colony's products in 1959, with the value taken and the percentage that value bore to the value of all exports of the Colony's products, are shown below:

1959

U.S.A.

United Kingdom

Malaya

Japan

Thailand

Western Germany

Canada

...

$ million

Percentage of exports

563.84

25%

439.41

19%

212.57

9%

93.50

4%

79.67

3%

72.02

3%

60.53

60.31

9%

46.97

44.31

Australia Indonesia Nigeria

11. Forty five per cent of the value of exports of the Colony's products was taken by the British Commonwealth, 28% by America, 16% by Asia, 7% by Europe and 4% by the rest of the world; 35% went to those countries which grant Commonwealth preference.

RE-EXPORTS

12. The re-export trade which accounted for some 30% of total exports in 1959 was worth $995.41 million and was mainly directed to Malaya, Japan, China and Thailand, which four countries took 48% by value of all re-exports. There was also a valuable re-export trade with Macau, Formosa, South Korea and Indonesia. The re-export trade analysed by divisions of the Standard International Trade Classification is shown in the last column of Table 2, while Table 5 gives the quantities and values, in order of importance, of the most important commodity items entering the re-export trade during 1959, with corre- sponding figures for imports of the same commodities. Examples of the more important items are beans, peas and lentils; plants, seeds, flowers mainly for use in medicine and perfumery; antibiotic formulations, and coal-tar dyestuffs other than indigo.

IMPORTS

13. The Colony's most important imports continue to be raw materials and foodstuffs. In addition to the analysis by divisions of the Standard International Trade Classification in Table 2, Table 6 gives an analysis of imports by their end-use which enables a better picture to be

3

had of the absorption of imports into the economic life of the Colony. The most important sources of imports are listed below:

China

Japan

United Kingdom

U.S.A.

Thailand

Pakistan

Western Germany

1959

$ million

Percentage of value of total

imports

1,034.17

21%

769.60

16%

573.72

12%

516.68

10%

196.88

4%

145.76

3%

136.44

133.17

10%

123.06

112.00

Australia

Malaya

Switzerland

14. Changes in the direction and content of imports in 1959 compared with 1958 reflect the increased economic activity within the Colony, the play of economic forces in world trade, and trade policies pursued by other countries. The following examples serve as illustrations.

15. Imports of dyeing, tanning and colouring materials rose by $12 million. Although considerable quantities were re-exported to South Korea, the Philippines and China, an increasing quantity of retained imports were presumably for the expanding textile finishing industry.

16. An increase in the value of imports of transport equipment by $20 million was due to increased imports of aircraft parts and of ships for breaking up. There was an expansion of repairing and engineering services rendered to aircraft, and the demands at home and abroad (especially from Japan) for metal scrap resulted in the large imports of ships.

17. The quantity and value of imports of meat and meat prepara- tions rose by 22 million pounds and $28 million respectively. The year 1959 was relatively prosperous, more workers were employed, wages were raised and thus more foodstuffs were consumed.

18. There was an increase of $55 million in imports of silver, platinum, gems and jewellery, accounted for chiefly by increased imports of diamonds (cut and polished but unset) worth $145 million compared with $98 million in 1958. This may perhaps reflect expenditure by a growing number of tourists and visitors, or expenditure by more pros- perous residents. There was also an increase in the commercial exports of diamonds by $23 million.

4

19. Within the division 'textile yarns, fabrics and made up articles' an overall increase in imports of $160 million was recorded. The following groups of commodities accounted for that rise: Cotton yarn and thread, grey, of all counts, up by $100 million; cotton sheetings, shirtings and piece goods of all kinds, up by $114 million; and woollen fabrics and mixtures, up by $13 million. Cotton yarns came chiefly from Pakistan, and cotton piece goods chiefly from Japan. While, however, the value of imports of these commodities rose substantially, imports of raw cotton declined by $5 million.

20. Imports of plastic moulding materials rose by $34 million over the 1958 level. This was to meet the expanding requirements of manu- facturers of artificial plastic flowers and other plastic articles.

21. Where imports are closely linked with re-exports then a fall in one will normally result in a fall in the other. Both imports and re- exports of manufactured fertilizers fell by $28 million in 1959 compared with 1958, and this was due mainly to a diminished demand from China, which took only $6 million of manufactured fertilizers from Hong Kong in 1959 compared with $29 million in 1958. For the past three years China has imported large quantities directly from the main countries of origin, i.e. Western Germany, Netherlands and Belgium, which are also Hong Kong's sources of supply the diminished trade through Hong Kong was, therefore, not unexpected.

The United States

PRINCIPAL TRADING PARTNERS

22. The United States was the most valuable of Hong Kong's trading partners in 1959, taking $591.01 million of total exports and providing $516.68 million of imports. Total exports rose in value by 81% compared with 1958. Exports of local products to the United States were valued at $563.84 million, representing 25% of the value of all exports of local products from Hong Kong, and considerable increases were recorded in the value of clothing, which represents 57% of the total, miscellaneous manufactured goods (mainly artificial flowers and plastic toys and games) and textiles and rattan furniture. Imports from the United States also increased over the 1958 figure; the main import is raw cotton, worth $84.03 million in 1959, while cigarettes and tobacco leaf, antibiotics, fruits, plastic moulding compounds, textiles and machinery were also of importance. The United States takes first place on the export list and fourth place on the import list.

5

United Kingdom

23. The United Kingdom was the second biggest customer taking goods worth $462.19 million, of which $439.41 million was spent on local products. This represents an increase in total exports of $68.95 million over 1958. Exports to the United Kingdom represented 19% of all Hong Kong exports and were made up largely of textiles (mainly cotton piece goods); clothing (mainly shirts, outerwear; underwear and blouses); footwear; and miscellaneous manufactured goods such as plastic dolls and toys and artificial flowers. The United Kingdom was third on the import list with $573.72 million, also an increase over 1958. The main imports were machinery such as power cables, telegraph and telephone apparatus, electric switchgear, textile machinery, and machin- ery parts; iron and steel manufactures; textiles, especially woollen fabrics; and motor cars.

Malaya

24. Malaya is of considerable importance to both the export and re- export trade, taking $212.57 million of exports in 1959 and coming third on the export list.. The most important items were clothing, books and pamphlets, refined sugar and enamelled iron and steel household utensils. Malaya was the most valuable destination for re-exports, to the extent of $167.54 million; the most valuable items were fruits and vegetables, plants and seeds for medicine and perfumery, finished cotton piece goods, paper and paperboard (especially joss paper) and miscel- laneous articles such as joss sticks and fountain pens. Imports from Malaya rose in value over the 1958 figure to a total of $123.06 million, of which more than a third consisted of petroleum products. Other imports of value were charcoal, rattan canes, plants and seeds for use in medicine and perfumery, spices and textile fabrics.

25. The Malayan policy of freeing from restrictions imports of U.S. dollar goods does not appear, from the Trade Statistics, to have had an adverse effect upon Malaya/Hong Kong trade. It is, however, upon the United States/Hong Kong/Malaya transit trade, which does not appear in the Hong Kong Trade Statistics, that this policy has had a very definite effect: judging by applications for export licences, it has fallen by some 25% in 1959 compared with 1958, and to a mere trickle in the first part of 1960. It would be difficult to measure the financial loss involved for Hong Kong but its possible components are: buying com- missions made by Hong Kong importers; banking charges; insurance premia; foreign exchange dealers' profits; and shipping charges. It would seem unlikely that this trade will be recovered.

6

ARINE DEPARTMENT LI

China

26. Although China remains the principal source of supply of the Colony's imports, the figure of $1,034.17 million from that country in 1959 showed a decrease of $362.75 million compared with 1958, and represented only 21% of the value of total imports compared with 30% in the previous year. Foodstuffs represented 49% of the value of imports from China and 41% of the total import of foodstuffs from all sources. The most valuable of these foodstuff imports are swine, rice, eggs and fresh water fish, the value of which has however declined considerably since 1958; a decrease in the value of poultry imports was also marked. Other imports of value are cotton grey sheeting, embroidered table linen, plants and seeds for use in medicine and perfumery, and cement. The value of total exports to China continued its downward trend, being worth only $114.33 million in 1959; of this figure $105.46 million were re-exports. Of importance among these re-exports were sulphate of ammonia fertilizers, gunny bags, linen fabrics, plants and seeds for medicine and perfumery, coal-tar dyestuffs other than indigo, antibiotics, base metals and machinery.

Japan

27. Japan expanded her world trade in 1959, following the general decline at the end of 1957 and 1958. The value of imports from Japan into Hong Kong has grown from $596.99 million in 1958 to $769.60 million in 1959 and puts Japan second to China on the import list. Of this total some 44% was in textiles, especially white and dyed cotton piece goods and spun rayon piece goods. Electrical machinery (mainly radio sets), non-mineral manufactures (cement); textile machinery, soya bean oil, and miscellaneous manufactured goods such as zip fasteners and articles of plastics were of importance. Many of these imports are destined for re-export to South East Asia, U.S.A. and Europe. Japan took fourth place in respect of total exports, valued at $231.11 million and of domestic exports at $93.49 million; but second place in respect of re-exports, valued at $137.61 million. The principal export was metal scrap, mainly iron and steel, bronze and brass, which accounted for some 87% of the value. Re-exports consisted of vegetables, especially beans, peas and lentils, soya beans, sheep's and lamb's wool and woollen fabrics.

Thailand and Indonesia

28. Thailand and Indonesia both exhibited similar trends during 1959, showing an increase in the value of their imports into Hong Kong

7

compared with 1958-$36.59 million in the case of Thailand, $8.16 million in the case of Indonesia-and a fall in total exports, Thailand a fall of $70.19 million, Indonesia of $135.59 million. Imports from Thailand were valued at $196.88 million of which 61% was rice and 19% bovine cattle and swine; teakwood and vegetables were also imported. Of the $102.84 million worth of imports from Indonesia, $85.28 million represented petroleum products; rattan canes accounted for a further 13%. Exports to both countries consisted mainly of textile yarn, fabrics and made-up materials, in the case of Indonesia to the extent of 89%; there were also exports of clothing, paints and enamels, and enamelled iron and steel household utensils to Thailand. Exports were valued at $79.67 million to Thailand, and $46.97 million to Indonesia. Re-exports also consisted mainly of textile yarn, fabrics, and made up articles-80% in the case of Indonesia and 79% in the case of Thailand. The value of re-exports to Thailand was $67.15 million and to Indonesia $28.19 million.

II. GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES

GENERAL

29. The organization of the department is illustrated in Table 7. The work of the department has, throughout the year, been distributed among ten branches grouped into three divisions. Most of the branches were sub-divided into two or more sections, each with a distinct sphere of responsibility. Assistant Directors headed each of the three divisions, -Controls, Development and Administration, but as a result of the Salaries Revision in 1959, the post of Assistant Director, Administration, was upgraded and restyled Deputy Director. In conformity with this change, a regrouping of branches began towards the end of the year. The Development Division took over the Industry Branch from Admin- istration, and the ground was laid for it also to take charge of Statistics while handing over the Certification Branch to the Controls Division. By the middle of 1960/61 the Deputy Director will be largely relieved of direct responsibility for operational branches of the department and will be able to assist the Director as required over the whole field of the department's activities.

30. These organizational changes have been made possible by the creation of a new grade of Senior Trade Officer with an establishment of three posts at headquarters. Two of these were filled by the promotion of Trade Officers and the other by recruitment from overseas. Senior Trade

8

+

Officers are in charge of some of the more important branches or groups of branches, and will enable Assistant Directors to devote more attention to matters of policy. The appointment of Senior Trade Officers is a further step in the development of a cadre of professional officers who are not transferable to other departments.

31. The duties of each branch of the department are outlined in the following paragraphs as an introduction to the succeeding chapters in which the main events and trends of the year are described.

OVERSEAS TRADE RELATIONS BRANCH

32. This branch's principal concern is to keep a watch on changes or possible changes in tariffs, quantitative restrictions, etc. in overseas countries which may affect Hong Kong, and to pass on such information promptly to chambers of commerce and trade associations which may be concerned. In addition, the branch studies the activities and development of international institutions concerned with trade, and conducts limited surveys of the Colony's trade with other countries and of market potentialities overseas. It is essentially a branch devoted to the collection and presentation of information on which the policy and activities of the operational branches can be based.

EXPORT PROMOTION BRANCH

33. As its name suggests, the purpose of this branch is to promote the Colony's export trade, particularly the exports of goods manu- factured in Hong Kong. The two major projects undertaken during the year were the Vienna International Trade Fair, participation being arranged in conjunction with the London Office, and the organization of a trade mission to West Africa. The inclusion of seven territories in the mission's itinerary and the planning of an elaborate and tight schedule of travel by air presented a number of administrative problems.

34. Preparatory work was undertaken in connexion with Hong Kong's appearance at the Washington State International Trade Fair in Seattle in May 1960.

35. The Publications Section continued to produce the monthly Trade Bulletin, and a number of improvements in its make-up and presentation were introduced. The branch also undertook the prepara- tion of the 1960 edition of the Commerce, Industry and Finance Directory, the Senior Trade Officer being personally responsible for the text and for seeing the publication through the press.

9

36. The branch handles most written inquiries from overseas addressed to the department, and is also responsible for interviewing and assisting a constant flow of visitors to the Colony.

OVERSEAS OFFICES

37. The London Office has become increasingly involved in public relations and has played a big though unobtrusive part in presenting a balanced picture of the Colony's industry and trade to the United Kingdom public.

38. Close liaison is maintained with the Board of Trade and Her Majesty's Customs and Excise, the latter particularly in connexion with claims to preference for Hong Kong goods.

39. The closure of the Tokyo office and its absorption into the British Embassy which was planned for April 1960 was precipitated by the sudden and tragic death of Mr. W. J. ANDERSON, O.B.E. who had looked after the trading interests of the Colony in Japan since 1949.

40. Provision was included in the estimates for a new overseas office in Sydney, Australia, but recruiting difficulties precluded its opening before the end of the year.

INDUSTRY BRANCH

41. A separate Industry Branch came into being in August 1959, and towards the end of the period under review took over responsibility for registration of factories for certificates of origin of all kinds. Considerable preparatory work was undertaken with a view to compiling industrial production statistics.

42. The branch is increasingly used by industry as a means of liaison with other departments of Government, particularly when its requirements for land are under consideration.

43. There is a growing interest among industrialists and others in the promotion of scientific management, and assistance and encourage- ment was given in conjunction with other departments.

CERTIFICATION BRANCH

44. The Certification Branch is responsible for the issue of certifi- cates of Hong Kong origin, comprehensive certificates of origin covering the export of 'presumptive' goods to the United States of America, and the countersignature of Commonwealth Preference certificates issued by

10

approved accountants covering the export of Hong Kong products to countries, other than the United Kingdom, which grant preference.

45. The increase in the total number of certificates of all kinds issued during the year is due to the further expansion of industry, the increasing number of American tourists visiting the Colony who require comprehensive certificates of origin for their purchases here, and the continuing tendency of authorities overseas to insist on their importers producing certificates of origin issued by the department.

46. Every effort is made to ensure that certificates are only approved where the circumstances warrant, and procedures are constantly reviewed with this aim in view. Liaison is maintained and encouraged with customs authorities overseas which is promoting a sense of confidence in the value of certificates issued by the department.

TRADE LICENSING BRANCH

47. With the enactment of the Importation (Prohibition) (Strategic Commodities) Regulations, 1959, work involved in the issue of import licences was reduced towards the end of the year. This was, however, offset by an increase in the number of applications for export licences, which continue to be issued mainly for exchange control reasons.

48. The Branch is responsible for the administration and policing of the voluntary undertaking given by the cotton textiles industry to limit the export of cotton piece goods to the United Kingdom. This is achieved by means of export licensing.

49.

SUPPLIES BRANCH

Records of stocks of coal, firewood, rice, meat and a number of other essential foodstuffs held commercially in the Colony continued to be maintained by the Supplies Branch. There was no change in rice import policy, and the arrangements for controlling the importation of firewood were maintained as in recent years. The department continued to maintain certain stocks of food and fuel for emergency purposes.

DUTIABLE COMMODITIES BRANCH

50. The Branch is responsible for the assessment and collection of import and excise duties. Mechanization of the licensing records resulted in a considerable improvement in the control over renewals, with consequent benefit to the revenue. Duty collections continued their upward trend during the year.

11

51. Duties on tobacco and light oils were raised at the end of February 1960.

STATISTICAL BRANCH

52. The Statistical Branch's main responsibility is the production of the Colony's trade statistics which are published by the Government Printer. The branch also compiles the Statistical Supplement to the Government Gazette, calculates the Retail Price Index, and assists other departments.

53. Punched card equipment installed in the branch was fully employed throughout the year and no additional recurrent service involving the use of machine time can be undertaken.

THE PREVENTIVE SERVICE

54. The Preventive Service is a uniformed, disciplined force, re- sponsible for most of the functions of a Customs and Excise service in relation to the few commodities which are dutiable in Hong Kong. It also has particular responsibility for preventing the smuggling of narcotics into and out of the Colony, while a section of the force is attached to the Certification Branch and carries out inspections in accordance with its requirements.

55. Further progress was made during the year with the reorganiza- tion of the Service, and the filling of outstanding vacancies in the lower ranks led to more adequate control over smugglers.

56. Discipline and morale continued to improve and very satisfactory results were obtained in all branches of preventive activity.

57. Control over narcotics was made more effective by a substantial increase in the number of officers engaged on these duties, and liaison with the Police Narcotics Bureau continued.

ACCOUNTS AND ADMINISTRATION BRANCH

58. The Accounts and Administration Branch is responsible for the department's accounts, stores, personnel and general administration and welfare. It is in effect the departmental 'housekeeper', largely relieving the operational branches of concern for these problems.

59. The storage, documentation and disposal of confiscated goods, departmental uniforms and stores has been further improved, and the control of expenditure from departmental votes strengthened.

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60. Considerable work was undertaken in connexion with the department's building programme which includes the first instalment of quarters for local staff.

LEGISLATION

61. There were no major legislative changes affecting the department during the year, but a number of minor amendments were enacted which are described in Chapter XIII.

62. Considerable progress was made towards a major revision of the Dutiable Commodities Ordinance and Regulations.

THE TRADE AND INDUSTRY ADVISORY BOARD

63. This report would be incomplete without a tribute to the work of the Trade and Industry Advisory Board which took the place of the former Trade and Industry Advisory Committee on the 1st January, 1959.

64. Besides the Director of Commerce and Industry who is ex-officio chairman, there are nine members of the board who are appointed annually by His Excellency the Governor and whose appointments are notified in the Government Gazette.

65. 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.'

66. During 1959 the members of the board were: Messrs. G. M. GOLDSACK, J.P., S. S. GORDON, C.A., L. P. Kwok, J.P., C. C. LEE, J. S. LEE, the Hon. Dhun RUTTONJEE, O.B.E., J.P., Messrs. G. O. W. STEWART, J.P., S. H. SUNG, B.SC., M.I.Mech.E., and U Tat-chee, O.B.E., J.P.

67. From the 28th April to 21st July, 1959, Mr. S. J. Cooke, J.P., replaced Mr. G. M. GOLDSACK during the latter's absence from the Colony.

68. On 1st January, 1960, Messrs. Joseph Law and Haking WONG replaced Messrs. L. P. KwokK and S. H. SUNG.

69. The board held thirteen meetings during the financial year 1959/60 and was consulted on a wide range of subjects. These included the operation of the undertaking given by the cotton textiles industry to limit exports to the United kingdom; the department's trade promotion programme, particularly participation in trade fairs overseas and the despatch of trade missions abroad; the publication of the

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Commerce, Industry and Finance Directory and the Trade Bulletin, including the rates charged for advertisements in these publications; proposals to establish a permanent display of the Colony's products in Hong Kong; representation of the Colony at meetings of E.C.A.F.E.; a proposal to limit voluntarily the exports of certain types of cotton garments to the U.S.A.; legislation affecting the work of the department; and proposals to established a trade office in Sydney and a branch office of the department in Kowloon. A number of these topics are referred to elsewhere in this report.

70. A sub-committee of the board studied the question of holding an International Gift Show in Hong Kong. Its report was approved by the full board and forwarded to Government in April 1960.

71. The department and the industrial and commercial community are greatly indebted to the members of the board for the time and care which they have devoted to its business. The board has been a valuable means of contact with responsible opinion in the commercial and industrial field, and the wise and constructive advice which members have given to the department is gratefully acknowledged.

PUBLIC RELATIONS

72. 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.

III. OVERSEAS TRADE RELATIONS BRANCH

GENERAL

73. The continued expansion of Hong Kong's industry and the success enjoyed by many exporters of Hong Kong products are indicated in Chapters VI and I respectively. On the other hand, increased tariffs, import quotas, more exacting requirements in respect of certificates of origin, and a tendency on the part of certain highly industrialized countries to discriminate specifically against Hong Kong have all

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combined to form protective or prohibitive barriers against the Colony's trade.

74. The Overseas Trade Relations Branch, which was set up in 1958 mainly to keep abreast with such developments overseas, had its skeleton staff somewhat augmented during the year, and made some progress in elementary market research and in the supply to local trade associations of information on changes in overseas tariffs and quantita- tive restrictions on imports. It provided a comprehensive brief for the members of Hong Kong's trade mission to West Africa referred to in paragraphs 111 to 113. By the end of the year, a more stable staffing position was in sight, and the Branch should be able to make a more effective contribution in 1960/61 towards evaluating economic and commercial developments in Hong Kong's existing or potential markets. 75. Mr. J. S. LEE, a member of the Trade and Industry Advisory Board, led the Hong Kong delegation to the third session of the E.C.A.F.E. Committee on Trade, which met in Bangkok during January 1960. He was accompanied by an officer of the branch who had previously attended the second session of Intra-Regional Trade Promotion Talks.

THE GENERAL AGREEMENT ON TARIFFS AND TRADE

76. Two Sessions of the contracting parties were held during the year under review: the 14th Session at Geneva in May and the 15th at Tokyo in October 1959. Hong Kong was represented at both by an adviser attached to the United Kingdom delegation. Questions involving the principles embodied in the G.A.T.T. have become increasingly important to Hong Kong, in view of restrictive and frequently dis- criminatory measures in foreign markets.

77. Included in the agenda for the 14th Session was a recommenda- tion that Committee III should study barriers to the present export trade of underdeveloped countries, in both primary products and manufactured goods. The United Kingdom Government was therefore provided in advance with a summary of Hong Kong's experiences of several forms of trade barriers, and also with a list of the Colony's principal industrial products. The 15th Session had before it a report from Committee III which recommended that 'contracting parties, particularly industrialized countries, should examine tariffs, revenue duties and internal charges, quantitative restrictions and other measures applied by them with a view to facilitating an early expansion of the export earnings of less developed countries'. In discussing the subject,

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the United States representative referred to the disruptive effects for importing countries of sharp increases in imports over a brief period and in a narrow range of goods. Further discussion was expected to take place at the 16th Session at Geneva in May 1960.

THE EUROPEAN FREE TRADE ASSOCIATION AND

THE EUROPEAN ECONOMIC COMMUNITY

78. The European Free Trade Association Convention was signed in Stockholm on 20th November, 1959 and marks the latest development in Western Europe towards economic integration. As both this Associa- tion (known as the Seven) and the already constituted European Economic Community (known as the Six) involve the phased erection of a system of internal tariff preferences against the rest of the world, including Hong Kong, the development of their international trade policies is being closely watched. It is not clear yet whether their influence will be on the whole towards the liberalization of world trade or the creation of closed blocs.

COTTON TEXTILE AGREEMENT WITH BURMA

79. The agreement, referred to in last year's report, for the supply of Hong Kong cotton textiles and yarn to Burma under the U.S. Public Law 480 Program was implemented during the year. Other countries participating in the transaction are India, Japan, the Netherlands, Great Britain, Yugoslavia, West Germany and France. Payment is being made partly in sterling and partly in U.S. raw cotton, the fixed ratios of cash for processing and of raw cotton being finally determined at 45% and 55% for textiles, 35% and 65% for yarn respectively. The terminal dates for contracting and for delivery of raw cotton have been extended to 30th May and 31st June, 1960, respectively. A further agreement under P.L. 480 between the United States and Burma was under discussion before the end of the period covered by this report.

COTTON TEXTILE AGREEMENT WITH INDONESIA

80. An agreement, similar in many respects to that described above, was concluded in May 1959, between the Governments of the United States and Indonesia for the supply of textiles and yarn to Indonesia manufactured from surplus American raw cotton under the P.L. 480 Program. An opportunity was offered to Hong Kong to compete for the provision of part of the yarn required, and Government appointed Henningsen & Co., Ltd. as their official co-ordinating agent for the

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purpose. Owing to the extent of state trading undertaken by the Indonesian Government, Henningsen & Co., Ltd. invited a representa- tive of the department to visit Djakarta in October for liaison with the authorities on the spot, and to convey to the Indonesian Government an official statement of Hong Kong's interest in processing a share of the cotton. The visit was particularly opportune in view of the negotiations being conducted at that time by other interested parties, who were anxious to secure for themselves as large a share of the deal as possible.

81. The overall value of the Agreement is US$24.5 million, of which Hong Kong finally obtained a contract for yarn worth just over HK$24 million, or about one-sixth of the total. Payment for yarn is made in the ratio of 35% in cash for processing and 65% in U.S. raw cotton. Twelve cotton mills in Hong Kong expressed a joint interest in the scheme and appointed Jardine, Matheson & Co., Ltd. as their com- mercial agents. So far as is known, other countries participating are Japan, which has received the major portion, and Singapore.

82. After protracted negotiations, the commercial agreement between Hong Kong and Indonesian interests was signed in December 1959, delivery of the yarn to be completed within nine months; the Govern- ment to Government Arrangement was signed by the United Kingdom on Hong Kong's behalf in February 1960.

OBSTACLES TO FREE TRADE

83. The following paragraphs illustrate some of the obstacles which discourage or limit the importation of Hong Kong goods into various overseas countries. In some cases it will be seen that restrictive measures have been adopted on a global basis; in others it is clear that the restrictions are aimed specifically at Hong Kong. The department keeps local trade associations informed of all such developments and assists them in preparing representations or, where appropriate, initiates repre- sentations at government level.

United Kingdom

84. The undertaking given by the Hong Kong textile industry to limit its exports of cotton manufactures to the United Kingdom for a period of three years as from 1st February, 1959, was described in last year's report. It was noted at the time that the undertaking was independent of any agreement which the United Kingdom Cotton Board might reach with the industries of India or Pakistan. In 1959 the

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industries of those two countries agreed with the Cotton Board to accept a quota for cotton manufactures exported to the United Kingdom over a period of three years as from 1st January, 1960, subject to the proviso that Hong Kong's voluntary undertaking should remain valid throughout the same period. The administration by the department of Hong Kong's undertaking is described in Chapter VIII.

France and Her Overseas Territories

85. As stated in last year's report, most manufactured textiles from Hong Kong were excluded from the benefits of liberalization accorded by France on 1st January, 1959 to the O.E.E.C. countries and their overseas dependencies. A quota for the importation of Hong Kong goods into France and French West Africa was also imposed in October 1958, the quota being equal to 50% of the value of such imports in 1957. Discussions concerning Hong Kong's exports of textiles to France and French West African territories were held in Paris in May 1959 between representatives of the Board of Trade, the Colonial Office, the Hong Kong Government, and the French Ministry of Economic Affairs. The French authorities refused to liberalize towards Hong Kong and offered instead a negligible quota for imports into Metropolitan France which was not acceptable.

86. The United Kingdom delegation pointed out that the policy in French West Africa of imposing discriminatory quotas for imports of cotton piecegoods from Hong Kong constituted a breach of the G.A.T.T. rules. The French authorities undertook to consider ways of easing the situation for Hong Kong, but stressed that in view of constitutional developments this was increasingly a matter for the local governments within the general framework of the economic interests of the French Community.

87. Further discussions were held in Paris in January 1960 at which Hong Kong was again represented. Little progress was made and the French authorities were informed that the United Kingdom (on behalf of Hong Kong) reserved its rights under the G.A.T.T. in respect of French West African territories, and under the O.E.E.C. and G.A.T.T. in respect of Metropolitan France. A formal protest was lodged with the O.E.E.C. in January 1960, pointing out that bilateral discussions with the French Government had been unsuccessful, and that French trade policy had shown a marked tendency towards increasing dis- crimination against Hong Kong during the year. This discrimination has been extended from textiles to certain other liberalized goods. On the

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other hand, France has agreed to open quotas for Hong Kong of two non-liberalized items-Chinese food specialities (£10,000) and toys and games (£5,000).

The Benelux Countries

88. Informal discussions were held in The Hague in May 1959 between representatives of the United Kingdom, the Netherlands and Hong Kong Government concerning Dutch restrictions on the import of wool and wool-nylon gloves from Hong Kong. The Netherlands had liberalized this item for other O.E.E.C. countries; moreover the gloves in question were of a type not manufactured in the Netherlands in any quantity. In October 1959, information was received that the Nether- lands Government had deliberalized for a period of one year gloves of pure or mixed wool or of artificial silk or textile fibres for O.E.E.C. countries, and that Hong Kong had been offered a quota of 38,000 dozen pairs, a figure much lower than the number exported before restrictions were imposed. Furthermore, considerable trade had already been lost as a result of the discriminatory withholding of import licences by the Netherlands Government for a period of eight months in 1959 at a time when gloves would traditionally have been imported for the winter season. The United Kingdom Government has lodged an official protest, drawing the attention of the Netherlands Government to its obligations under the G.A.T.T. and O.E.E.C., and requesting that the restrictions be withdrawn.

Switzerland

89. Mention was made in last year's report that the Swiss customs authorities had prohibited the duty-free import of Hong Kong grey cloth for processing and re-export to West European and North American countries, on the grounds that cloth which could not enter these markets direct should not be permitted to qualify by processing in Switzerland. It was pointed out to the Swiss authorities that such action did not apply to Hong Kong as the right of direct access existed, and an official protest was lodged by the United Kingdom Government in August 1959. In October the Swiss gave a negative reply, from which it appeared that the restrictions were largely designed to protect the Swiss industry. Duty paid imports are however still freely admitted.

The Federal Republic of Germany

90. Although German imports of rubber footwear were completely liberalized for O.E.E.C. countries in 1954, a quota on imports from

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Hong Kong remained in force until 1st January, 1960. Following repeated representations, this quota has now been abolished and Hong Kong is able once more to compete on equal terms with other countries.

United States of America

91. In November Mr. KEARNS, Assistant Secretary for International Affairs in the U.S. Department of Commerce, paid a second visit to Hong Kong for further discussions with representatives of Government and of the garment industry. Earlier in the year he had visited the Colony to advise garment manufacturers 'in their own interest to put a voluntary limit on their penetration of the U.S. market and to diversify their exports. On his second visit, during which he had discussions with Government officials, and with representatives of the Hong Kong Garments Manufacturers' Union, the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries Working Party, the Chinese Manufacturers' Association and the newly formed Hong Kong Garment Manufacturers' (for the U.S.A.) Association, his manner of approach was more forthright and he gave a warning that failure to apply a voluntary limitation would almost inevitably lead to restrictive legislation by the United States Congress.

92. Prior to his visit, discussions had taken place within the Hong Kong Garments Manufacturers' Union to consider what attitude they should adopt. A minority of members, who were nevertheless strongly representative of the trade with the U.S.A., were in favour of some form of voluntary limitation of the exports of cotton garments, but the majority were opposed to such a move. In the event, representatives of the Union agreed to meet Mr. KEARNS and hear what he had to say. After one meeting, the majority refused to enter into further discussions, and the minority broke away to form the Hong Kong Garment Manu- facturers' (for the U.S.A.) Association referred to in the preceding paragraph. Before Mr. KEARNS' departure, the new association informed him of its intention to reach a quota agreement.

93. At the end of December the association's membership had grown to 63 factories handling 80 - 85% of the trade in cotton garments with the U.S.A. It then proposed to set ceilings on the quantities of five types of woven cotton garments exported to the United States of America namely: blouses and blouse sets, shorts and trousers, sport shirts, brassieres and pyjamas. The offer was to be effective for three years from 1st July, 1960, the ceilings being based on actual exports during 1959 with percentage increases above that figure for each of the

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three years. The proposed undertaking was subject to Government agreeing to recognize and administer it. In forwarding the offer through the United States Consulate General to the American industry, Govern- ment confirmed that it was prepared to administer such an undertaking, subject to prior consultation with other commercial and industrial interests, and to the inclusion of adequate safeguards in the ultimate agreement.

94. The texts of the offer and of Government's forwarding letter were published in the press and gave rise to prolonged and heated comment. Opinion generally in the Colony was unfavourable. On 11th January, 1960, a reply was received from a representative group of U.S. apparel manufacturers welcoming the approach from Hong Kong but urging

(a) a reduction in the quantities proposed for export,

(b) the initiation of the ceilings at an earlier date than 1st July, 1960, (c) the inclusion of additional types of garments with precise defi-

nitions of each category.

(d) the publication of monthly statistical data of exports.

By the end of March, the Hong Kong Garment Manufacturers' (for the U.S.A.) Association and Government had not decided on what further action to take.

95. Meanwhile in November 1959, the President of the United States asked the Tariff Commission to advise, under Section 22 of the Agricultural Adjustment Act, whether a fee of 8 cents a lb., equal to the subsidy on exported raw cotton, should be imposed on imported cotton textiles. Government was kept fully informed of the progress of the Commission's inquiry, and it was noted that a number of witnesses spoke strongly in favour of quota restrictions on imports of all forms of cotton textiles. The report of the Commission had not been published by the end of the year under review.

Canada

96. Notice was received in May 1959 that the Canadian Tariff Board would hold a public hearing on 15th June to consider tariffs on the following commodities: knitted cotton fabrics imported for use by footwear manufacturers, a range of knitted garments, woollen socks and stockings, gloves and mittens of textile fibres, and woollen berets. Joint representations were made by the Hong Kong General Chamber of Commerce and the Exporter's Association; the findings of the Board had not been announced by the end of March 1960.

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97. New marking regulations were introduced during the year on the import of a number of items, including certain foodstuffs, cutlery, toys and games.

Commonwealth of Australia

98. As a result of the relaxation on import licensing controls during the summer of 1959, Hong Kong's export trade to Australia looked forward to a period of rapid expansion. However, following an appeal to the Australian Tariff Board for assistance to the domestic footwear industry announced in December 1958 and covered in last year's report, a number of similar appeals were made in 1959 on behalf of other manufactures. These included dolls, travel goods, canvas and duck materials, certain cotton piecegoods, artificial flowers, watch cases, man-made textile fibres, umbrellas and sunshades. Joint representations against protection were lodged in certain instances by the Hong Kong General Chamber of Commerce and the Hong Kong Exporters' Asso- ciation, with the assistance of the department. The Tariff Board had not reported on any of these applications by the end of the year.

New Zealand

99. A strengthening in their foreign exchange position enabled the New Zealand Government to relax licensing regulations considerably during the year, and prospects for an increase in imports from Hong Kong in 1960/61 appear to be encouraging. Information was received in June 1959 that the New Zealand Customs authorities had announced additional licensing provisions with increased global quotas for a wide range of goods, including gloves, cutlery, babies' clothing, cotton and silk yarn, china and porcelain ware, hollow-ware and some hardware.

Union of South Africa

100. Applications were made to the South African Board of Trade and Industries to protect local manufactures of terry towelling and for increased duty on traced napery of cotton, linen or rayon from 30% ad valorem to 40% ad valorem. In October 1959 an alternative specific duty was imposed on the import of towels, face cloths and bath mats of terry towelling, the ad valorem duty remaining unchanged. In the following month the import tariff on metal nuts and bolts was raised from 3% ad valorem to £1 per 100 lbs. on the intermediate rate of duty, which is the rate applicable to Hong Kong. On 22nd January, 1960, the rates of duty on children's socks, 25% ad valorem, were amended by the addition of an alternative specific duty of six shillings per dozen pairs where the f.o.b. cost does not exceed ten shillings per dozen pairs.

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East African Territories

LOTMENT LIBRARY

101. The Governments of Kenya, Uganda and Tanganyika intro duced alternative specific duties on enamelled hollow-ware to take effect from 30th April, 1959. The new duties represented increases ranging from 30% to 385% ad valorem on some items of enamelware imported into these territories The effect has been extremely damaging to Hong Kong's enamelware industry, which was just beginning to recover from the lower price levels of the previous years. Representations were made by the Hong Kong Enamelware Manufacturers' Association and a protest has been lodged by Government. Exports of enamelware to Kenya and Uganda have almost ceased as a result of the new duties imposed.

Federation of Rhodesia and Nyasaland

102. The question has been taken up of the discriminatory treatment by the Federation of Rhodesia and Nyasaland of imports from Hong Kong. The origin of the complaint dates back to the withdrawal from Hong Kong in 1955 of privileges granted to all dependent Common- wealth territories in the form of preferential import tariffs at the rates accorded to the United Kingdom. Hong Kong was not informed of the withdrawal at the time.

103. Applications for increased duties on towels and towelling were made to the Government of Rhodesia and Nyasaland in September 1959. If the proposed new rate is approved, if will represent a consider- able increase in duty, which may reduce Hong Kong's exports of these items even further.

Belgian Congo

104. The import duty was increased in September 1959 on a number of items, including certain garments, especially proofed garments, foot- wear except rubber footwear vacuum flasks and sewing needles. In November the import duty was raised also on plastic manufactures and it was announced that stipulated quality standards had been laid down for certain knitted goods. In March 1960 the duty on glass inners and other components of vacuum flasks was reduced to 10% ad valorem from 20% and 30% respectively.

Thailand

105. Import tariffs introduced on 6th June, 1959 showed an increase by 10% ad valorem on all items except foodstuffs. In November 1959 a new list of controls was published, indicating that several items

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normally imported from Hong Kong were now prohibited, including bowls, plates, trays, spoons, enamelled plaques and some rubber, paper, and plastic products.

COMPLAINTS UNDER THE MERCHANDISE MARKS ORDINANCE

106. Under the powers conferred by the Merchandise Marks Ordin- ance, Cap. 41, the department assists, where applicable or justifiable, any complainant in a private action by seizing or detaining goods in relation to which an offence against the provisions of the Ordinance is believed to have been committed. Assistance of this nature was given in seventeen cases during the year.

107. Official prosecutions are undertaken only in cases which appear to affect the general interests of the Colony, or of a section of the com- munity, or of a trade. None were undertaken during the year.

OFFICIAL EXCHANGE

108. 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.

IV. EXPORT PROMOTION BRANCH

OVERSEAS ACTIVITIES

Vienna International Trade Fair

109. Since most international trade fairs in the northern hemisphere are held either in the spring or autumn, Hong Kong's participation in the Melbourne Trade Fair in February 1959 precluded attendance at any other fair that spring. During the year 1959/60 therefore it was only possible to mount one exhibit which was at the Vienna fair in the autumn. As on most occasions in the past, the Colony's exhibit was of a purely prestige nature, the products being selected to show to the buyer and public the range and nature of consumer goods made in Hong Kong. The stand covered a floor area of 4,000 square feet and was designed, as was the Melbourn stand, by Professor GREGORY of the University of Hong Kong, to whom grateful acknowledgement is made. The stand included a small cinema in which films on various aspects of Hong Kong were screened. Pamphlets were printed in German for distribution at the fair, and Radio Hong Kong collaborated in the preparation of a short radio programme in German for broad-

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casting at Vienna. A section of the stand was made available to the Tourist Association.

110. The delegation was led by Mr. G. E. MARDEN, M.C., for many years a prominent businessman in Hong Kong, who had recently retired form active business in the Colony and returned to the United Kingdom. Four representatives of local business houses and three Government officials, including the Director of the Hong Kong Government's London Office, comprised the remainder of the delegation. Considerable assistance in the preparation for the Fair was generously given by Mr. F. PORDES, Honorary Austrian Trade Representative in Hong Kong, and his valuable advice did much to ensure the success of the Colony exhibit. More than 300 trade inquiries were received by delegates at the fair, and although it is impossible to assess the benefits derived from participation in any trade fair, it seemed evident that much commercial and public interest was aroused. Over 600,000 people visited the fair and most of them passed through the Hong Kong exhibit.

Trade Mission to West Africa

111. As indicated in paragraph 74, the Overseas Trade Relations Branch prepared a brief, for a trade mission to West Africa, on economic conditions in the territories to be visited, and on Hong Kong's trade with them. The Export Promotion Branch was responsible for all travel and administrative arrangements in consultation with the Govern- ments and the United Kingdom representatives in the territories concerned. The aims of the mission were to examine the market potential for Hong Kong products in the territories to be visited and to seek ways and means of overcoming the trading difficulties that have been experienced in these markets in recent years.

112. The mission was led by the Honourable R. C. LEE, O.B.E., and its members were Mr. P. MARDULYN, Manager of the Banque Belge pour l'Etranger (Extreme-Orient), Mr. R. G. L. OLIPHANT, Manager of the Hongkong & Shanghai Banking Corporation, Mr. J. J. COWPERTHWAITE, O.B.E., Deputy Financial Secretary, and Mr. J. D. MCGREGOR, Trade Officer of the Commerce and Industry Department. The emphasis on banking in the composition of the mission reflected the difficulties over payments experienced by Hong Kong merchants in dealing with that area. Mr. OLIPHANT travelled with the mission to the English speaking territories, and his place was taken by Mr. MARDULYN in the French and Belgian areas.

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113. The countries visited were Ghana, Nigeria, Sierra Leone, Cote d'Ivoire, the Federation of Mali and the Belgian Congo. Mr. COWPERTHWAITE visited Guinea independently. The fact that all of the territories visited had either recently acquired or were on the verge of independence made the visit particularly opportune, since it gave the mission a chance not merely to meet many of the officials and business- men who will have considerable say in the future development of these territories, but also enabled it to assess the changing climate of thought. Their report, which is to be published separately, indicates that there is a considerable potential for Hong Kong in West Africa generally, and the contacts which they have established should assist the Colony's businessmen to promote satisfactory trading relations. Such develop- ments will also be facilitated by the fact that members of the mission were able to clear up many misconceptions about Hong Kong held by responsible men in the territories visited.

TRADE FAIRS IN 1960/61

114. Early in August 1959 an Assistant Director of the department made a brief visit to Los Angeles and San Francisco to examine the suitability of the international trade fairs and gift fairs held in these centres. As a result of his visit it was decided that the gift fairs were not appropriate media for the display of Hong Kong goods, and it was discovered that no international fair would after all be held in Los Angeles during 1961. The Trade and Industry Advisory Board advised that the International Fair of San Francisco, which was planned to take place in the summer of 1960, should be included in the department's programme for 1960/61. Unfortunately this fair was also cancelled soon after the decision had been taken, and on the advice of the Board, it was decided to take part in the Ninth Washington State International Trade Fair at Seattle in May, and in the St. Erik's Fair at Stockholm in August 1960. Preparatory work for the Colony's reappearance at Seattle was put in hand early in the new year, and an area of 2,500 sq. ft. was reserved. In February 1960 an officer of the department visited Seattle and made preliminary contacts with the trade fair authorities, customs officials, stand constructors, consular representatives and others which were subsequently to prove most valuable.

VISITING TRADE MISSION

115. A number of trade missions from overseas visited Hong Kong during the year. They came from India, Pakistan, Greece, the Federa-

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tion of Rhodesia and Nyasaland, Ghana, and Thailand. All of these missions had discussions with officers of the department, and appoint- ments with chambers of commerce and other associations were also arranged on their behalf. The mission from Ghana, led by the Hon. P. K. QUAIDOO, Minister of Commerce and Industry, was particularly opportune in view of Hong Kong's own trade mission to West Africa a few months later. Cordial relations were established and a number of factory visits were arranged which proved useful in demonstrating what Hong Kong had to offer to Ghana.

116. During November the department was also glad to welcome officials from the Colonial Office, the Board of Trade, Canada, the Federation of Rhodesia and Nyasaland, Cambodia and Western Germany on their way home from the 15th session of the G.A.T.T. in Tokyo.

MISCELLANEOUS

117. The volume of correspondence received from abroad, the increasing number of visits from overseas businessmen, and the grow- ing number of requests for assistance from local commercial interests indicate the usefulness of the services provided by the Export Promotion Branch. A majority of overseas visitors and inquiries during the year under review came from the United States, with the United Kingdom a very close second. Visitors and inquiries were however received from almost every country in the world, and although it is difficult to establish what concrete result came from the assistance, advice and information given in response to them, indications are that some satis- factory business dealings have been established as a result.

118. A collection of photographs and publications was sent to the British Embassy at Vientiane for display at the That Luang Festival. 119. The Export Promotion Branch has mediated in a number of trade disputes at the request of both overseas and local concerns, and has been instrumental in bringing about the amicable settlement of the majority of them.

TRADE PUBLICATIONS

The Commerce, Industry and Finance Directory

120. Approximately sixteen thousand copies of the 1959 edition of the Commerce, Industry and Finance Directory were distributed free of charge to overseas firms and businessmen, to airlines, shipping companies, trade and travel associations, and to British embassies and consulates. About one thousand copies were sold locally.

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121. The 1960 edition will be published in June; compilation of the text and classified section, the selection of photographs and cover design, and the examination of artwork for all advertisements were completed by the end of the year under review.

122. Much of the text remains substantially the same as in the 1959 edition, but the chapters are presented in a revised lay-out. Duplication has been eliminated as far as possible and, by re-grouping certain sections, related subjects have been assembled in a more logical sequence. It is hoped that this will enhance the value of the Directory, particularly for overseas businessmen who are considering investing in the Colony's industrial potential. An innovation in the 1960 edition is the inclusion of an index.

123. The 1960 text runs to 108 pages, the last part consisting of a classified section of Hong Kong products with lists of firms dealing in them. Despite explanatory circulars to trade associations on the advantages likely to accrue to manufacturers and exporters from taking space in this part of the Directory, it is regretted that the coverage offered by this section is far from comprehensive.

124. Securing suitable photographs again proved no easy task, but the range and quality compare with the standard of previous editions. The 1960 Directory is illustrated by sixteen pages of multi-coloured and twenty four pages of black and white photographs; it also carries twenty coloured and eighty one black and white and monochrome advertisements placed by local firms. The department acknowledges with grateful thanks the co-operation and advice received from the printers at all stages of editing, and is confident that the high standard of printing achieved in recent editions will be maintained.

Trade Bulletin

125. The year 1959/60 was one of continued progress for the Trade Bulletin. The part it is playing in the Colony's trade promotion is reflected in the increased correspondence received during the year from overseas firms and businessmen wishing to receive the publication regularly. Last year, 900 new names were added to the mailing list; this year the figure rose to 1,600.

126. The overseas inquiries section, which appears in the supple- ment to the local edition of the Trade Bulletin, was again well patronized by overseas readers and nearly 1,500 trade inquiries were published. A pleasing feature is that, for the first time, letters inquiring about local products predominated.

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127. Circulation increased to over 10,000 copies monthly by the end of the year. The vast majority of these are sent free of charge to firms and businessmen overseas interested in trading with Hong Kong, and the department continues to receive about one hundred requests monthly to be added to the regular mailing list. A welcome rise in local sales during the year followed a small publicity campaign carried out by the department, and the January and February (1960) issues were completely sold out shortly after publication.

128. A local survey was carried out to ascertain the efficacy of advertising in the Bulletin; this produced some very encouraging results. Returns from the various firms which took part in the survey showed that 89% of those advertising on a full or half-page over the past year received inquiries as a direct result of their advertisement. Advertisers in the trade inquiries section met with even greater success, 96.8% receiving requests for further information about their products. Accord- ing to records supplied by advertisers, 52.4% of inquiries arising from full and half-page advertisements and 45.5% of inquiries about notices in the trade inquiries section led to firm orders being placed.

129. The aim of the Trade Bulletin over the past year has been to publicize some of the Colony's lesser known industries in an effort to stimulate wider interest abroad and help in the diversification of Hong Kong's domestic exports. Industries covered in this way included ship- breaking, silverware, paper, mail-order tailoring, ceramics and carpet making.

130. The standard of photography has continued to improve and the new style of cover introduced early in 1959 has met with very favour- able comment. The department welcomes this opportunity of thanking the Information Services Department and the various commercial studios and photographers who have assisted in the production of the Bulletin during the year. It is especially grateful for the continued co-operation and technical advice of the two printers, Cathay Press, who print the text and advertisements, and the Yat Sun Co., who print the cover and colour inset.

131. The Trade Publications Section also distributed copies of the Hong Kong Annual Report to overseas chambers of commerce and trade associations, and copies of the Hong Kong General Chamber of Commerce Report to chambers and consulates abroad.

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DEPARTMENTAL LIBRARY

132. Publications are received regularly in the department from over eighty different territories and the library has now available approximately 2,500 publications. These include commercial directories, reference books and magazines on particular trades and industries, together with statistics and information on duties and customs tariffs in overseas territories. Additions to the library are published in the Trade Bulletin every quarter, and during the year it has been widely used by local and overseas businessmen and students. There are also several thousand black and white photographs and colour transparen- cies depicting various aspects of the Colony's trade, products and industries, which for the most part have been featured in the depart- ment's two publications, the Hong Kong Trade Bulletin and the Commerce, Industry and Finance Directory. The copyright of these is usually held by the department and they may be reproduced free of charge in any approved publication on application to the department.

V. OVERSEAS OFFICES

Commonwealth Preference

THE LONDON OFFICE

133. Commonwealth Preference matters again formed an important part of office activities in a year during which H.M. Customs and Excise wrote over 1,600 letters to Hong Kong Accountants about claims to preference. Properly analysed, this provided more material for the Commonwealth Preference card index maintained in the office.

134. Discussions on preference matters with Customs and Excise were held on many occasions during the year and covered such subjects as transistor radios, microscopes, timber products, prawns, pepper, imitation jewellery and embroidered linen.

Trade Fairs

135. The office was responsible for the organization in Europe of the Colony's participation in the Vienna Trade Fair. The Director of the office was a member of the Hong Kong delegation on the stand, and one of his staff also assisted. Planning also began for Hong Kong's appearance at the St. Erik's Fair in Stockholm in the summer of 1960.

Commercial Relations

136. Commercial introductions arranged by the office increased by 30% having moved from 1,000 to over 1,300. Forty five requests for

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insertions in the Trade Bulletin were forwarded to the department on behalf to United Kingdom and European companies.

137. Statistical information was provided both for, and about, Hong Kong and covered such subjects as typewriters, cars and com- mercial vehicles, floor coverings, potassium nitrate and cotton piece- goods. Twenty five commercial disputes were investigated and most settled satisfactorily. The voluntary undertaking arranged by the Hong Kong Textile Industry called for careful and consistent liaison with the Board of Trade on the smooth operation of licensing and re-export undertaking arrangements. The office is increasingly asked to provide advice immediately by telephone to interested parties: it is estimated that during the year some 300-400 calls of this type were received.

Public Relations

138. Close liaison was maintained with the Hong Kong Committee of the China Association in connexion with public relations activities in the United Kingdom.

139. Up-to-date material about Hong Kong was provided to writers producing articles, and six articles were produced in the office for United Kingdom publications.

140. The office was able to obtain from Hong Kong a model of a resettlement block for display at Commonwealth Weeks organized in major cities of the United Kingdom. In addition small advertisements have been placed in supplements to provincial newspapers which appear when particular towns celebrate Commonwealth Weeks. So far the exhibition has appeared in Liverpool, Leeds, Birmingham, Norwich and Cardiff, and will ultimately proceed to Leicester, Tynemouth, Edin- burgh, London and Manchester. A copy of the film 'Hong Hong Today' has been supplied for showing in all these areas. The office is neces- sarily limited in the number of invitations it can accept to address public meetings, but during the year talks were given to branches of the English Speaking Union at Exeter and Canterbury, the Institute of Export in Birmingham, the Birkenhead Rotary Club, and St. Edmund's Girls College in Liverpool. Two films about Hong Kong have been in constant circulation to clubs and societies throughout the United Kingdom.

141. Every day brings requests from schools, school masters, school children, trade associations, other organizations and individuals for literature about the Colony and large supplies have been distributed throughout the year in this way. In addition, World Refugee Year

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required special attention, and assistance was given to organizations— particularly churches which were mounting special displays in support of World Refugee Year funds.

Miscellaneous

142. Some 1,200 visitors were received and interviewed during the year. Assistance was given to the Chinese Manufacturers' Association in the placing of advertisements in connexion with its 17th Exhibition of Hong Kong Products.

143. Assistance was also given to the Marine Department, firstly in the progressing of machinery for a Government fire float, and secondly in finding at short notice a qualified marine diesel engineer to sail in the 'Cape St. Mary' from Georgetown to Hong Kong.

144. There were five meetings of the Board of Governors of Hong Kong House as well as many other meetings and conferences in con- nexion with the affairs of this students' hostel and social centre.

145. In May 1959 the Director of the office accompanied the Deputy Financial Secretary (Economic) to Paris and Amsterdam for trade discussions with French and Dutch officials. In January 1960 he visited Hong Kong for a period of three weeks.

146. Mr. L. DUNNING, an Assistant Trade Officer of the department, spent three weeks in the office during which arrangements were made for him to attend a brief course at the Board of Trade and to visit H.M. Customs and Excise. A most useful contribution was made by Mr. TUNG Man-tak, an Assistant Statistical Officer of the department, who spent several weeks in the office reconstructing basic statistical records while in the United Kingdom for a period of leave and study.

Staff

147. The office consists of a Director, Assistant Director, Senior Clerk, Shorthand-Typist, two Junior Clerks and one Office Junior.

148. A rapid turnover of junior clerical staff was a handicap and, during his visit to Hong Kong, the Director of the office discussed proposals designed to attract and retain a better standard of recruits. Some of these were approved in March 1960; decisions on the remainder were expected early in the next financial year.

THE TOKYO OFFICE

149. On 27th November, 1959, Mr. W. J. ANDERSON, O.B.E., Hong Kong Government Representative and concurrently Head of the Hong

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RINE DEFAPTULAT LIBPARY

Kong Section of the British Embassy in Tokyo, died in Queen Mary Hospital after a brief illness. Mr. ANDERSON served the Government and people of Hong Kong for thirty four years. He first went to Tokyo in 1949 when he took charge of the Hong Kong Government Agency in Japan. In 1952 this office became part of the British Embassy and Mr. ANDERSON remained in charge of it as a member of the Embassy staff. His untimely death was a great shock to his many friends and colleagues in Hong Kong and Tokyo who mourned the loss of an able officer and a loyal friend.

General

150. Representation of the Colony's commercial interests in Japan continued to be the function of the Hong Kong Government Repre- sentative who was concurrently the Head of the Hong Kong Section of the British Embassy in Tokyo. The office of the section was located at Naka 8th Building, Marunouchi, in the centre of the business district of Tokyo.

151. The main activities of the section were the furthering of Hong Kong's interests and presentation of 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.

Trade Promotion and Tourism

152. Requests for general information about the Colony increased progressively during the year, in line with an increase in the flow of businessmen and tourists, mainly from America, to Japan.

153. Japanese businessmen frequently consulted the office on Hong Kong, and advice was given in a number of commercial disputes.

154. Technical data was supplied to Hong Kong firms who were interested in purchasing Japanese industrial machinery.

Trade Fairs

155. The Tokyo International Trade Fair was held in May 1959. The Hong Kong Government Representative and delegations from the Kowloon Chamber of Commerce, the Chinese Manufacturers' Associa- tion, and the Chinese General Chamber of Commerce attended.

Conferences

156. The World Health Organization Seminar on Veterinary Public Health was held in Tokyo from 20th April to 1st May, 1959 and

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assistance was rendered by the section to the two delegates from Hong Kong.

157. The Representative spoke at the British Chamber of Commerce in Tokyo, and reviewed events which had a bearing on Hong Kong's economy during the preceding year.

Visits

158. At the invitation of the Prefectural Government, the Repre- sentative paid a visit to Hokkaido an area which does much business with Hong Kong.

Publications

159. Publications such as the monthly 'Trade Bulletin', the 'Com- merce, Industry and Finance Directory', and the 'Hong Kong Annual Report' was distributed to inquirers who sought information concerning trade with, and information about, the Colony. The publications together with Hong Kong newspapers and magazines were also made available to visitors in the reading room. Supplies of Hong Kong literature were increased by material from the Hong Kong Tourist Association.

160. The office was a feature of the June 1959 issue of the "Trade Bulletin' and the supply of all copies received was quickly exhausted.

Procurement

161. The section undertook the procurement of a variety of goods for Hong Kong Government departments.

Immigration Facilities

162. As in previous years the section handled the processing of a great many applications for visas to visit Hong Kong, and to transit the Colony on the way to China.

Other Activities

163. The office continued to maintain effective liaison with depart- ments of the Hong Kong Government on a wide variety of topics.

164. 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

165. Until November 1959 the office staff consisted of the Repre- sentative and seven Japanese nationals. It was Government's intention

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to close the office on 1st April, 1960, when Mr. ANDERSON was due to proceed on leave preparatory to retirement. On his death the office was allowed to run down and was absorbed into the Embassy on 31st March, 1960. On retrenchment, members of the staff were granted gratuities in recognition of their loyal service, and all but one obtained alternative employment, one remaining in the service of the British Embassy. The department is particularly indebted to the staff of the Embassy for their generous assistance over the administrative problems arising out of the closure of the office.

THE SYDNEY OFFICE

166. On the advice of the Trade and Industry Advisory Board, Government decided to open a trade office in Sydney. The approval of Her Majesty's Government in the United Kingdom, and of the Australian Government was received in June 1959 but difficulties were encountered in recruiting a suitable officer to take charge. At the end of the financial year it was hoped that the office would open before the end of 1960.

VI. INDUSTRY BRANCH

GENERAL

167. In August 1959 the staffing position at last made it possible to establish the Industry Branch as a distinct entity, and it was separated from the Certification Branch which has in recent years had to deal with subjects affecting industry in addition to its main duties. The new branch was also able to relieve the Export Promotion Branch of respon- sibility for interviewing visitors from overseas interested in many aspects of the Colony's industry, and for handling correspondence of a similar nature: the division of responsibility in this sphere is, however, flexible and only experience will show whether a more clear-cut demarcation is required.

168. The new branch gave assistance to individual manufacturers, and was able to advise a number, including inquirers from overseas, on various aspects affecting the establishment of new industrial under- takings in the Colony. The usefulness of the branch was enhanced by close liaison with other departments which are concerned in one way or another with industrial development.

169. Tours of a wide variety of factories were arranged for overseas visitors to the Colony.

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FEDERATION OF INDUSTRIES

170. A Working Party consisting of seventeen members with Dr. the Hon. S. N. CHAU, C.B.E., as Chairman and the Hon. J. D. CLAGUE, C.B.E., M.C., as Deputy Chairman, was appointed by His Excellency the Governor in June 1959 to draft a constitution for a Federation of Industries, invite individual factories and firms to be founder members and generally bring the Federation into being. The Chinese Manufac- turers' Association declined to nominate three representatives to the Working Party because it objected to membership of the Federation being based on individual factories or firms rather than on representa- tive associations.

171. The Working Party held its first meeting on 10th August, 1959. By the end of the year nineteen meetings had taken place and the Working Party had completed the drafting of a constitution. It was decided to incorporate the Federation by Ordinance instead of by registration under the Companies Ordinance as had been originally completed.

172. The department was glad to assist the Working Party with information from time to time.

MANAGEMENT TRAINING

173. During the year an increasing interest was displayed in educa- tion and training for management as a means of increasing industrial efficiency and productivity. The Junior Chamber of Commerce spon- sored visits to the Colony of representatives from the Harvard School of Business Administration and from the Stanford Research Institute. The former organization is considering the holding of a management seminar in the Colony, the latter is interested in having more students from Hong Kong attend its courses. The Working Party of the Federa- tion of Industries has also concerned itself with management training and sponsored a delegation to attend the Twelfth Congress of the International Committee of Scientific Management in Australia. In conjunction with the University of Hong Kong, the Labour Department conducted two seminars on Industrial Relations. The department advised or assisted in such activities.

174. Giving the closing address at the second course Dr. L. T. RIDE, Vice Chancellor of the University, intimated that the University was prepared to assist in education for management. The Education Depart- ment is to recruit an officer to arrange and co-ordinate courses in management training at the Technical College.

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LOCAL EXHIBITIONS

175. On 4th December, 1959, His Excellency the Governor, Sir Robert BLACK, K.C.M.G., O.B.E., performed the opening ceremony at the 17th Exhibition of Hong Kong Products arranged by the Chinese Manufacturers' Association. As in previous years the department acted as general liaison between the Association and the various Government departments concerned, and assisted with the administrative arrange-

ments.

176. The Exhibition, which was again held at Tsim Sha Tsui, covered a larger area than hitherto on this site. Intelligent use of the additional area resulted in a general improvement in the spaciousness and overall appearance of the Exhibition, and there were encouraging indications of a growing awareness of the value of good design and layout.

177. An innovation was the establishment of a section where local products were displayed for viewing only, rather than for sale. This section was of particular interest to overseas visitors as it also included a special office to deal on the spot with trade inquiries.

178. The Exhibition ran for one month and over one million visitors were recorded, including many overseas buyers, before it closed on the 5th January, 1960.

Wearing Apparel

INDUSTRIAL DEVELOPMENT

179. The manufacture of wearing apparel including all types of shirts, underwear, outerwear (both knitted and woven), neckwear, gloves, hats and caps, socks and stockings and assorted made up textile articles, constitutes the Colony's largest industry employing a labour force in excess of 49,000 workers in over 650 industrial under- takings. The industry expanded considerably during the period under review, mainly due to increased purchases from the United States and several European countries. An idea of the variation in size of local garment factories may be gained from the fact that the biggest factory employs over 3,000 while a great many employ under 50 workers.

Textile Spinning

180. The 19 cotton spinning factories which are registered with the department for certification purposes employed over 15,000 workers by the end of 1959, operating over 400,000 spindles, an increase of approximately 40,000 over the total for 1958. Production of cotton yarn

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during 1959 was approximately 140 million lbs. as compared with 128 million lbs. in 1958.

181. The woollen spinning industry increased its capacity during the year and the total production of woollen yarn was over 2.6 million lbs., more than double the 1958 production.

Textile Weaving

182. Labour Department records at the end of the year indicated that 208 cotton weaving factories were in operation employing 22,643 work people. 101 of these factories, including all those manufacturing for export, were registered with the department for certification purposes. These factories had a total of over 12,800 looms in operation. The corresponding figure in 1958 was 11,628.

183. The total production of cotton piecegoods for 1959 was 360.3 million square yards, a very substantial increase over the 1958 figure of 272.6 million square yards.

184. Several new textile factories, both spinning and weaving, commenced operation during the year and many existing factories completed or continued the modernization of their plant. By the end of the period under review several more factories were under construc- tion and their combined potential output indicates that the textile industry during the next year will maintain the rate of expansion which has been apparent during the past few years.

Textile Finishing

185. The capacity of the finishing industry also increased substan- tially with the opening of a large new plant near Sha Tin. This factory alone can process up to 50 million square yards of cloth per year, and the total annual capacity of the finishing industry is now in the region of 360 million square yards. There is a steady improvement in techniques and in the range of dyed and printed piecegoods which can be offered for export.

Knitting

186. The knitting industry, with 220 undertakings employing over 9,200 workers, has also expanded during the past year and, although most of the knitted material which it produces is converted into under- wear and outerwear by the garments industry, a rising proportion of its production is being exported, notably to Australia and New Zealand, which imported knitted fabrics to the value of $4.6 million. Nine

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factories producing knitted gas mantles and employing over 250 workers exported mantles to the value of $2.3 million during the year.

Other Textiles

187. Many other branches of the textile industry increased their capacity and output. Their products included carpets, labels, rayon and silk brocades, lace and nylon thread.

Enamelware

188. The steady contraction of the enamelware industry which has been noted during recent years continued during 1959 and by the end of the year only 4,200 persons were employed by the 21 local factories registered with the Labour Department, as compared with 5,644 in 22 factories at the end of 1958. Of these 16 are registered with this department for the export certification of their products. This contrac- tion of the industry may have been influenced by the recent establish- ment of enamelware factories in a number of countries which have constituted good markets for Hong Kong enamelware in the past. Nevertheless, the trade was valued at $70.2 million for 1959 compared with $68.2 million in 1958.

Plastics

189. The plasticware industry continued to expand during 1959 and by the end of March 1960 there were 15,000 persons employed in over 350 factories, producing a very large range of plastic articles. The biggest increase took place in the plastic flowers section of the industry, and exports of this commodity jumped from the 1958 total of HK$16 million to $61 million in 1959. The main buyers were the United States and the United Kingdom, but increasing interest was shown by a number of other territories.

190. The increased range of well designed and strongly made plastic toys, and the good name which Hong Kong plastics manufacturers of this commodity enjoy in overseas markets, have induced a substantial expansion of production during the year which has been reflected in increased exports valued at over $75.2 million during 1959.

Metal Torches

191. The production of metal torch cases of all types, materials and designs, constitutes one of the major metal industries in the Colony employing as it does approximately 6,400 workers in 38 factories. Hong Kong torches are popular in many countries of the world and 1959

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exports valued at $39.3 million were 20% up on exports for 1958. The United States and the United Kingdom were the biggest buyers.

Manufacture of Machinery

192. Hong Kong, already well known in world markets as a producer of light consumer goods, is now making a favourable impression with a variety of industrial machinery including textile equipment, diesel engines, diesel operated generators and pumps, and plastic moulding machines. A number of underdeveloped countries which are engaged on industrialization programmes have purchased Hong Kong made machinery for their new factories and have commented favourably on the quality of manufacture. Many local factories also are using or have placed orders for machinery produced in the Colony.

Shipbuilding

193. Shipbuilding is one of Hong Kong's earliest established indus- tries and 1959 was, despite the depressed state of world shipping, a fairly satisfactory year for new tonnage. Several hundred vessels of all types were built during the year of which a number were ocean-going ships. The Tai Koo Dockyard and the Hong Kong & Whampoa Dock Co. Ltd. were both kept busy during the year with repairs and new building. Nearly 900 ships were repaired, and exports of new vessels were made to countries as far afield as West Africa, the United States, Burma, and Australia. A very profitable and expanding section of this industry is concerned with the building of pleasure craft of all types including yachts, cabin cruisers, hydroplanes, and a varied range of speed boats. An interesting development was the production for the first time of fibreglass hulled pleasure craft. The industry employed over 8,700 workers at the end of the year.

Shipbreaking

194. The local shipbreaking industry, consisting of 25 breakers employing over 3,200 workers, handled more gross tonnage than any other shipbreaking centre in the world during 1959. The industry, although faced with serious land difficulties, will look back with satisfac- tion on a year which has produced approximately 260,000 tons of iron and steel scrap for local use and export. Almost 140,000 tons were exported during the year to Japan, and local steel rolling mills used scrap in excess of 75,000 tons to produce at least 72,000 tons of steel reinforcing rods for the local building industry. This represents about 60% of the Colony's annual needs of this commodity.

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New Industries and Products

195. Among the products of a number of new factories established in Hong Kong during the year are extruded plastic tubes, transistor radios, wood wool insulating slabs, and woollen piecegoods. A new precision engineering factory also commenced operation, with the technical capability of producing aircraft component parts, watch parts, and other components which require a high degree of precision in manufacture.

196. Other interesting developments include the establishment of a factory for processing and packaging antibiotics, and the production for the first time in Hong Kong of domestic window type air conditioners.

197. A new factory for the production of stainless steel cutlery, with an initial output estimated at 30,000 sets of 24 pieces each, was nearing completion by the end of the period.

LAND FOR INDUSTRY

198. The department continued to assist industrialists in matters connected with the establishment of new premises on land leased or bought from the Government.

Kwun Tong

199. The department has a special interest in Kwun Tong, the first planned industrial suburb which is rapidly going up on land reclaimed from the sea. The Kwun Tong Advisory Committee, of which the Director is Chairman, met on one occasion to consider problems which had arisen.

200. A progress report on the development of Kwun Tong was circulated for inter-departmental use in September 1959. A second report, also prepared in consultation with other departments concerned, formed the basis for an official press release in January 1960.

201. The Kwun Tong scheme, the first two stages of which have already been completed, will provide approximately 235 acres of industrial land and, by the end of March 1960, 84 industrial sites with an area of 58 acres had been sold under conditions which will ensure rapid and proper utilization of the land for industrial building.

202. By the same date, the construction of 49 factories had been completed and building was in progress on a further 23 sites. Four sites previously sold had either been re-entered or surrendered to Government as a result of non-compliance by the purchasers with the

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terms of the sales. The size of average industrial sites sold to date is 10,000 - 15,000 sq. ft. but a number of large sites including one of over 178,000 sq. ft. were also auctioned. The prices realized at Kwun Tong averaged $20.00 per sq. ft. for the smaller sites and $10-15 for the larger.

203. Land is available at concessionary rates for the building of quarters to house workers from the new factories at Kwun Tong, and, by the end of the financial year, a number of sites for domestic housing had been sold, including a large site to be developed by the Hong Kong Housing Society. Also in the area, the building of resettlement housing has proceeded apace and by the end of March, a number of multi-storey blocks were occupied. When the Kwun Tong development has been completed it is estimated that approximately 200,000 persons will reside in the area, once a desolate and barren shoreline.

Tsuen Wan Kwai Chung

204. During the year, Government decided to proceed with the reclamation of Kwai Chung in conjunction with another reclamation at Tsuen Wan which is already under way. This reclamation will provide almost 400 acres of industrial land. Preliminary work has already been put in hand and the main reclamation will start before the end of 1960.

Cheung Sha Wan

205. Government will shortly commence accelerated development of the Cheung Sha Wan area to provide land for both industrial and domestic purposes. To this end, it has become necessary to evict a number of small industrial concerns presently 'squatting' on the land or operating under temporary permits. This department, together with others, has been engaged in attempting to find suitable alternative areas into which the affected industries can move. Sawmills and timber yards may be located in an area of north-east Lantao. Shipbreakers who have certain peculiar land requirements are in rather different circumstances but sites in Junk Bay may ease their difficulties.

Yau Tong Bay

206. Several sites were sold during the year at Yau Tong Bay, an area to the east of Kwun Tong which has been allocated specifically to the boatbuilding and timber industries. A number of sawmills to be evicted from Cheung Sha Wan have already purchased sites in Yau Tong Bay.

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INDUSTRIAL SURVEYS

207. During the year the branch undertook a number of surveys to obtain information on various aspects of local industry.

208. One survey ascertained the quantity of fresh water required by the textile industry in Hong Kong, and what proportion of its requirements was actually being supplied. Information was also obtained on the quantity of water used by various sections of the industry, the proportions obtained from mains and well supplies, and a breakdown of requirements by areas.

209. A monthly survey of all land sites sold at Kwun Tong is carried out by the branch to keep in touch with building progress. Detailed records on each site are maintained.

210. A survey of Tsuen Wan industrial sites was also completed during the period and the records of the branch brought up to date as a result.

211. Other surveys were carried out on the ceramics, enamelware and shipbreaking industries.

PRODUCTION STATISTICS

212. Much preparatory work was undertaken during the year as a prelude to asking registered factories in selected industries to submit details of their production to the department for statistical assessment. The branch at present obtains production statistics only from the textile spinning and weaving industries. Approximately 4,000 factory premises were inspected by officers of the department and, as a result, all registered factories were reclassified under the International Standard Industrial Classification index, an internationally used breakdown of industrial processes.

FACTORY REGISTRATION

213. As indicated in paragraph 218, the Industry Branch prepared to assume responsibility for the registration of local factories for certifi- cation purposes towards the end of the year.

VII. CERTIFICATION BRANCH

GENERAL

214. While the departmental systems for the processing of applica- tions and the issue of all types of certificates was kept under review to

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ensure flexibility with efficiency, no major alterations were made during the year.

LEGISLATION

215. After consultation with the Hong Kong General Chamber of Commerce and the Trade and Industry Advisory Board, the Exportation (Imperial Preference Certificates) Regulations, 1956 were amended during the year. The nature of the amendments is described in paragraph 348.

REGISTRATION OF FACTORIES

216. On 31st March, 1960, the number of factories registered with the department for the issue of certificates was 3,858, an increase of 246 over the previous year.

217. Table 8 shows the number of factories registered with the department for certificates, the number of the various types of certificates issued, and the declared value of goods certified, with corresponding figures for the previous year.

218. In future the Industry Branch will be responsible for the registration of factories for certification purposes instead of the Certifica- tion Branch, and the preliminary work in preparation for this transfer was virtually completed by the end of the year.

219. On 1st October, 1959, revised conditions of registration were brought into operation for the issue of Certificates of Origin and Com- monwealth Preference Certificates for embroidered goods other than garments. The revised conditions precluded cottage-type manufacture of these goods.

INSPECTION OF FACTORIES AND GOODS

220. Inspections made during the year numbered 58,461, an increase of 15,907 over the previous year. General inspections, to ensure the continued existence of factories at registered addresses and their capacity to produce goods as claimed, were increased during the later half of the year.

221. Cases continued to be referred to the department by overseas customs authorities for inquiry and investigation and the department's liaison with overseas customs authorities was maintained.

222. Comparative figures of inspections carried out during the last few years will be found in paragraph 333.

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CHANGES IN CERTIFICATION REQUIREMENTS OF VARIOUS TERRITORIES

223. In April 1959, Sierra Leone modified certain certification requirements:

(a) where 50% or higher Commonwealth content is required for admission under preferential rates of duty, a Commonwealth Preference Certificate is alone acceptable;

(b) where 25% Commonwealth content is required for preferential rates, either a Commonwealth Preference Certificate or a Certifi- cate of Origin endorsed that the goods attain 25% Common- wealth content is acceptable;

(c) for admission under Open General Licence a Certificate of Origin issued either by the Hong Kong General Chamber of Commerce or this department is acceptable.

224. With effect from 30th April, 1959, all textile goods entering Denmark for which Hong Kong origin is claimed must be supported by Hong Kong Government Certificates of Origin.

225. From May certain textile goods consigned from Hong Kong to Belgium or Luxembourg required the support:

(a) of a Hong Kong Government Certificate of Origin and

(b) a Certificate of Manufacture issued by the Hong Kong General

Chamber of Commerce.

226. Both certificates require to be endorsed by the Belgian Con- sulate General in Hong Kong, a consular fee of $26.00 being charged for each certificate.

227. From 31st July, 1959, all textile products (including garments) exported from Hong Kong to West Germany required the support of Hong Kong Government Certificates of Origin.

228. In October, 1959, the Fiji Customs authorities advised that brassieres exported to Fiji under claim to Commonwealth Preference must be covered by a 50% Commonwealth content Preference Certificate if natural rubber (including elastic) were present in any form.

229. With effect from 1st November, 1959, endorsement by the Belgian Consulate General of Government Certificates of Hong Kong origin issued in support of exports of textile products to the Belgian Congo and Ruanda Urundi was no longer required.

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230. From October certain goods consigned from Hong Kong to Austria require the support of a Certificate of Origin. Only certificates issued by the following authorities are acceptable:

(a) Commerce and Industry Department;

(b) the Hong Kong General Chamber of Commerce; (c) the Chinese General Chamber of Commerce.

STANDARD CERTIFICATES OF ORIGIN

231. The number of standard Certificates of Hong Kong Origin issued during the year exceeded the 1958/59 figure by 22%. 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 admitted at preferential rates of duty. Although specific cost statements in support of the claim to 25% Commonwealth content are not as a general rule required, reference is made to costings for Commonwealth Preference purposes already on file.

COMMONWEALTH PREFERENCE CERTIFICATES

232. Customs authorities in all Commonwealth countries which grant preferential rates of duty for Hong Kong products, except the United Kingdom, rely upon the department to ensure that when a certificate is issued it represents a valid claim to preference in accordance with the requirements of the country of destination.

233. 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 all claims to preference. In addition to guidance on principles and practice, a number of circulars dealing with individual territorial requirements were issued to accountants.

234. A revised version of the Commonwealth Preference chart for sale as a guide to the Hong Kong business community was published in January 1960. As they became known, changes in Commonwealth Preference requirements of other territories were notified to Chambers of Commerce, etc.

235. The number of Commonwealth Preference Certificates issued showed a decrease of 12% although the total value of goods exported under claim to preference during 1959/60 increased by about $20,400,000 to almost $147,471,000.

236. Her Majesty's Commissioners of Customs and Excise in London continued to be responsible for the scrutiny of cost statements

46

and claims to preference prepared by Hong Kong approved accountants for goods entering the United Kingdom under preferential tariff. As indicated in paragraphs 133 and 134 the London Office was involved in correspondence arising out of such claims. There was an increase in the number of cases in which H.M. Commissioners of Customs and Excise sought the department's help regarding claims about which they wished inquiries to be made.

COMPREHENSIVE CERTIFICATES OF ORIGIN

237. The procedure for the issue of Comprehensive Certificates of Origin for prawns and shrimps was suspended on 17th June, 1959, and that for ceramics on 14th November, 1959. The introduction of a revised procedure in July 1959 for cotton and linen handkerchiefs, which had been under suspension since August 1958, permitted the resumption of Comprehensive Certificates of Origin for these items.

238. The following items were added to the list of those certificable under the Comprehensive Certification procedures on the dates shown:

Cotton embroideries on silk, rayon, nylon and

wool fabrics

...

Silverware (Chinese type)... Tiger Balm ...

Woollen embroideries-factory and cottage type

8th June, 1959. 18th June, 1959. 4th August, 1959. 29th August, 1959.

239. During the year certain procedures were revised and others combined in order to improve efficiency and eliminate certain anomalies which had become apparent.

240. A new Mail Order Comprehensive Certificate of Origin was introduced on 4th December, 1959. This permits mail order houses to despatch goods to the United States and its dependencies under $5 Mail Order certificates instead of $25 Commercial Comprehensive Certificates of Origin as previously required.

241. Except in the case of Commercial Comprehensive Certificates of Origin which showed a decrease of 4%, the number of all other types of Comprehensive Certificates issued during the year showed a marked increase. The overall total number of comprehensive certificates issued increased by 32% and the value of goods exported under these certifi- cates practically doubled.

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

47

confer Hong Kong origin on the products, and General Certificates certifying the capacity of a manufacturer to produce goods for which the department's certificate 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 Preventive Service Officers in connexion with the issue of certificates amounted to $225,894.

ENFORCEMENT

245. During the year seven certificates were revoked and one prosecution for an offence against the Certificate of Origin Regulations resulted in a fine of $300.

246. A prosecution on charges of conspiracy to obtain Common- wealth Preference Certificates for goods not so entitled resulted in sentences of imprisonment and heavy fines for the two principals of the company concerned and heavy fines for three other persons associated with the conspiracy.

VIII. TRADE LICENSING BRANCH

GENERAL

247. In November 1959, the Importation and Exportation (Prohibi- tion) (Strategic Commodities) Regulations, 1959, were made. These regulations provided for a considerable relaxation in licensing require- ments and superseded the Importation and Exportation (Prohibition) (Specified Articles) Regulations, 1952.

248. In February 1960, those countries subscribing to the United Nations Resolution of 19th May, 1951, made a reassessment of the strategic significance of certain commodities. As a result, it was possible to carry the process of relaxation of controls further.

249. Other legislative changes affecting the work of the Trade Licensing Branch are mentioned in Chapter XIII.

48

IMPORT LICENSING

250. Although import controls in general were relaxed, restrictions were still maintained on the import of goods having a high strategic value. Commodities in this category, generally raw materials required for Hong Kong's industry, were subject to quantitative and end-use controls. Local end-users were in many cases required to submit docu- mentary evidence of their use of the materials involved. Frequent inspections of individual factories were made by officers of the depart- ment to ensure that highly strategic materials imported for specific factories were being put to proper use.

251. During the year under review, the department issued 81 Delivery Verification Certificates to verify the landing of strategic goods in Hong Kong. This compared with 190 issued in 1958/59 and 632 issued in 1957/58.

252. Under the International Sugar Agreement imports into Hong Kong of all kinds of sugar from countries which have not acceded to the agreement are limited to an annual quota of 7,530 metric tons. This quota was fully used up by the end of the year ended 31st December, 1959.

253. The number of import licences issued during the year was 40,218 compared with 41,742 in 1958/59.

EXPORT LICENSING

254. A considerable range of goods which were formerly embargoed may now be exported to the Sino-Soviet Bloc. This has resulted in a reduction in Hong Kong export requirements for shipment of goods to China.

255. Delivery Verifications and Landing Certificates are required in support of export licences issued for highly strategic goods. These have been supplied by the exporters concerned as evidence of arrival of these goods in approved territories.

256. The majority of export licences are still issued for exchange control purposes. The total number issued during 1959/60 was 304,152 compared with 249,708 for 1958/59.

EXPORT OF COTTON MANUFACTURES TO THE UNITED KINGDOM

257. In accordance with the voluntary undertaking given by the Hong Kong cotton textiles industry to the United Kingdom Cotton Board in December 1958, the export of cotton piecegoods from Hong Kong to the United Kingdom for retention there is limited to an annual

49

quota of 115 million square yards, for three years commencing 1st February, 1959. This quota is subject to an additional ceiling of 3 million square yards to be applied specifically to yarn-dyed cloth and towelling exported in excess of 4 million square yards. During the first textile year, which ended on 31st January, 1960, 113,975,679 square yards of cotton piecegoods were exported under quota. In addition 5,265,109 square yards were shipped outside the established quota for re-export from the United Kingdom. Shipments of cotton made-up goods, on which no limit has been placed, totalled 56,759,741 square yards.

258. During the summer and autumn of 1959, the department dis- cussed arrangements for the second year of the undertaking with the chairmen of the various textile associations, of the Hong Kong General Chamber of Commerce and the Exporters' Associations, and a repre- sentative of the dyeing and finishing industry. There was general agreement to:

(a) an increase in the sub-quota for finished piecegoods to 23 million square yards as compared with 10 million in the first year, as agreed by the Hong Kong Textiles Negotiating Com- mittee at the time the undertaking was signed. By agreement with the chairmen of the various associations concerned, the latter figure had been reduced during the year to 2 million square yards as the allocation was not fully taken up.

(b) The reservation of a sub-quota of 4 million square yards for

yarn-dyed piecegoods and towelling as in the first year.

259. Representatives of the trade were unable to agree on a basis for allocating the sub-quota for grey cloth. There were differences of opinion on the extent, if any, to which 'past performance' should be taken into consideration, and these were accentuated by the realization that a markedly smaller share of the total quota would be available for grey cloth than in the first year of the undertaking. The reasons for this expected reduction were the increased sub-quota for finished piece- goods, and the certainty that exports of garments during the year ending 31st January, 1960, would exceed 46 million square yards. The effect of the latter would be to reduce the yardage available for grey cloth by the amount by which the figure of 46 million square yards was exceeded. In the event, it was found that garment exports during the first year totalled 56.76 million square yards, so that a sub-quota of only 78.26 million square yards was available for grey cloth during the second year compared with 109 million in the first. The figure 78.26 includes

50a carry-over of 1.02 million square yards from the previous year. After full consideration of the conflicting views of all parties, the department had itself to decide on the allocation of this sub-quota for grey cloth in what it conceived to be the best interests of the trade as a whole. A sub-allocation of 5 million square yards was reserved for newcomers to the industry, including new capacity in existing mills: the balance was allocated to shippers (whether mills or exporters) in proportion to their shipments during the period 1st February to 31st October, 1959.

260. Arrangements for the year ending 31st January, 1961, were given wide publicity in the press and through chambers of commerce and industrial and trade associations by means of 'Notices to Exporters' issued during October and November 1959.

261. Licensing and other arrangements incidental to the administra- tion of the undertaking worked smoothly, but various effects of the undertaking gave rise to dissatisfaction on the part of the Colony's industry. These were taken up with the Cotton Board, so far without result.

Rice

IX. SUPPLIES BRANCH

RESERVED COMMODITIES

262. The rice control scheme was reviewed at the end of 1959 when it was decided that the existing arrangements would continue without modification for another year. In order to ensure adequate supplies, the basic quarterly import quota for 1960 was raised from the previous figure of 72,600 metric tons to 77,000 metric tons, and the stockholding commitment from 39,600 metric tons to 40,700 metric tons.

263. Total rice imports during the year ending 31st March, 1960, were 343,999 metric tons as compared with 297,432 metric tons in the previous financial year, as follows:

Source

Thailand

China

Cambodia

South Vietnam Burma

North Vietnam

Australia Pakistan

1958/59

1959/60

M/Tons

%

M/Tons

%

158,746

53.4

172,770

50.2

63,168

21.2

60,753

17.7

36,673

12.3

44,177

12.8

...

21,441

7.2

35,758

10.4

8,577

2.9

22,505

6.5

8,797

3.0

6,786

2.0

25

1,250

0.4

5

297,432

100.0

343,999

100.0

51

264. The year 1959 brought an increase in production in all rice producing countries, leading to a general fall in export prices. Local rice market prices followed this trend and dropped steadily throughout the year. The local rice trade was normal and there was no speculation.

265. The scheme operated satisfactorily and invited no public criticism during the year. 1959 can be said to be the most successful year since 1955.

Frozen Meat

266. Frozen meat remained a 'reserved commodity', and import and export licences were required for all supplies entering and leaving the Colony.

267. Total imports of frozen meat for 1959/60 were 10,274 long

tons.

Source

Beef Mutton

Pork Offals

Total

(L/Tons)

%

China

394

188

2,495

3,412

6,489

63.2

Australia...

960

402

2

135

1,499

14.6

U.S.A.

94

701

795

7.7

Denmark

295

158

453

4.4

Canada

51

338

389

3.8

New Zealand

89

256

18

363

3.5

Holland

29

7

94

130

1.3

Argentina

32

24

20

76

0.7

Costa Rica

67

67

0.7

Japan

9

9

0.1

United Kingdom...

4

4

1,495

679 3,224 4,876 10,274

100.0

268. Local consumption of both frozen and fresh meat during the past three years was as follows:

Coal

Fresh Meat Frozen Meat

1957/58 1958/59 1959/60

L/Tons

L/Tons

L/Tons

35,784

49,137

62,994

7,037

9,398

9,389

42,821

58,535

72,383

269. Total imports of coal for 1959/60 amounted to 191,564 long tons as compared with 202,556 long tons in 1958/59.

52

VASINE DELAKTMENT LIBNAKY

%

Source

1958/59

1959/60

L/Tons

%

L/Tons

China

172,127

85.0

149,214

77.9

Japan

14,280

7.1

23,387

12,2

North Vietnam

6,706

3.3

...

9,576

5.0

Australia

3,325

1.6

6,501

3.4

Indonesia

4,516

2.2

1,793

0.9

Taiwan

1,602

0.8

1,093

0.6

202,556

100.0

191,564

100.0

Coal remained a 'reserved commodity' and import and export licences were required for all supplies entering and leaving the Colony.

Firewood

270. Firewood also remained in the 'reserved commodity' list and subject to import and export licensing. The control scheme worked satisfactorily throughout the year, adequate supplies at reasonable prices being available. Diversification of sources of supply was well maintained and North Borneo has become the principal supplier in place of China. 271. Total imports of firewood during the year 1959/60 were 140,411 tons, as follows:

Commercial Imports

Total

Government

Source

Imports

Imports

Tons

Tons

Tons

North Borneo

53,297

22,552

30,745

China

35,176

35,176

Malaya

28,179

28,179

Brunei

18,505

18,505

Sarawak

3,700

3,700

North Vietnam

1,014

1,014

Formosa

498

498

Cambodia

35

35

Macau

7

7

140,411

22,552

117,859

272. The maintenance and turnover of the Government firewood stockpile was carried out in a satisfactory manner. 13,586 tons of Government firewood were sold in the year ended 31st March, 1960, at an average price of $5.06 per picul as compared with 21,038 tons at $4.67 per picul in the previous year. The reduced releases form Govern- ment stock reflected an improvement in supplies through commercial channels.

Foodstuffs

273. Reserve stocks of certain essential foodstuffs continued to be maintained and turned over during the year.

53

Accounts

274. The net expenditure on maintaining the Government stockpiles for the year was $2,866,761.80, being the difference between expenditure on supplies, storage, etc., and the proceeds of sales. After re-valuation of the stocks at 31st March, 1960 on the basis of the market value or original landed cost, whichever was lower, the net loss for the year was $1,536,854.27.

X. DUTIABLE COMMODITIES BRANCH

GENERAL

275. The total net revenue from duties and licence fees during the financial year 1959/60 was approximately $122,702,000. This is an increase of $9,645,000 or 8.5 per cent compared with the previous financial year. Collections under the main duty headings of Tobacco, Hydrocarbon Oils, Liquors and Table Waters were the highest on record. The duties collected for Toilet Preparations and Proprietary Medicines represent collections in arrear for 1958/59. As from 25th February, 1959 duty has been collected only on the alcohol content of those Toilet Preparations and Proprietary Medicines containing more than 2% proof spirit i.e. 0.9% alcohol by weight or 1.2% by volume.

276. Tobacco continued to be the principal source of revenue, $54,568,614 being received during the year under review. This is a rise of approximately $7.9 million or 16.9 per cent over the total for 1958/59. All categories except European smoking tobacco showed increases as compared with 1958/59. The duty on all types of tobacco was raised on 24th February, 1960, the increases representing $2.00 a pound on cigars and $1.90 a pound on other categories. This had little effect on the year's total revenue but the duty collected in March 1960 was the highest on record ($6,559,418) for a single month.

277. Hydrocarbon oil continued to maintain its narrow lead over liquor and exceeded last year's total collection by approximately $4.4 million. There were increases in all categories of hydrocarbon oils as a result of industrial development and the increase in the number of motor vehicles and mechanized fishing vessels. The duty on light oils was raised by 45 cents to $1.25 a gallon on 24th February, 1960. As the majority of light oil duty is collected in arrears the effect of this increase was not fully reflected in the year's accounts.

54

278. Liquor showed an increase of over $3.2 million compared with 1958/59. There were increased collections in all categories except imported Chinese Liquor and Methyl alcohol. The latter, however, is dutiable solely in order to restrict its use in the Colony and is not considered a revenue earner.

279. Table waters show a marked increase, the total being $360,000 above that for last year, representing a rise of 13.1 per cent. The increase was due to a mild winter with monthly sales exceeding the usual seasonal totals.

REVENUE FROM DUTIES

280. Net revenue from duties, as compared with collections for the previous year, are summarized in the following table:

1958/59 $

1959/60 $

Tobacco

46,670,892

54,568,614

Hydrocarbon Oils

28,621,221

32,018,548

Liquor

27,972,324

31,143,111

Table Waters

2,768,696

3,132,008

Methyl Alcohol..

10,111

9,277

*Toilet Preparations and Proprietary

Medicines

5,335,062

3,738

$111,378,306

$120,875,296

* Not dutiable as from 25th February, 1959. Collections during 1959/60 are arrears of duties

from the previous year.

281. A further breakdown of these figures is given in Table 10.

REVENUE FROM LICENCES

282. Net Revenue from licences increased by approximately $148,000 as shown by the following table:

Liquor Tobacco

Hydrocarbon Oils

Table Waters

1958/59 $

1959/60 $

1,117,019

1,323,094

394,610

447,575

38,520

44,376

6,840

7,496

*Toilet Preparations

and

Proprietary

Medicines ...

115,950

2,593

Ship and Harbour vessel licences

5.363

1,324

Methyl Alcohol

470

700

$1,678,772

$1,827,158

* Not issuable as from 25th February, 1959. Collections during 1959/60 are

licence fees payable in the previous year.

arrears from

55

283. This unusual increase is due to the fact that during the twelve months under review, licence fees for approximately thirteen months were collected as a result of continued improvements arising from the mechanization which took place in April 1958. Whereas early in the year 1959/60 demand notes for licence fees were being despatched one month after the renewal date, by the end of the year they were being despatched one month in advance. The total fees collected during 1960/61 should drop correspondingly.

284. Details of types of licences issued and revenue collected there- from are given in Table 11.

XI. STATISTICAL BRANCH

GENERAL

285. Considerable effort has been devoted to improving the operation of the mechanized equipment which was installed last year, and to overcoming the difficulties initially encountered. This effort has been successful, and the experience gained is of great value.

286. The presentation of the tables in the Statistical Supplement to the Government Gazette has been further improved by additional classifications, and by the introduction of new tables of financial statistics.

287. A new post of Assistant Statistician was created and an officer appointed in November 1959 whose main work is in the field of statistics for economic analysis.

TRADE STATISTICS

288. The year saw improvements to the operational procedure for producing the Trade Statistics. The time taken to produce the tabula- tions was reduced, the accuracy of the punch operators increased with experience, and the declaration checkers improved their speed and accuracy as they became more familiar with the revised country and commodity classifications. The machine tabulations were usually ready to send to the Government Printer for photo-offset by the 21st of the month following that to which they referred, and the volumes of trade statistics were published within a further month.

289. After November 1959 complete commodity within country tabulations for imports, exports and re-exports were produced monthly for the Overseas Trade Relations Branch. Special tabulations of country of destination of re-exports of United Kingdom origin were also pro-

56

duced, and considerable time was saved by producing returns on the machines instead of having the information typed.

290. The format of the new volumes of Trade Statistics is now familiar, and although the print is smaller than in the past the additional information available outweighs any slight disadvantages.

291. Revenue derived from trade declarations, landing certificates, ships' manifests, statistical services rendered to firms, etc. totalled $845,047 for the financial year ending 31st March, 1960 compared with $754,767 during the previous year. A total of 828,622 import, export and re-export declarations were received during the year.

STATISTICS OF TRADE BY PARCEL POST

292. The method of collecting parcel post statistics is that merchants are requested to complete voluntarily each month a simple form indicat- ing 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.

293. The number and value of parcels declared to the Statistical Branch during the year ending 31st March, 1960 was:

Despatched

Number of parcels

Value

22,795 $10,784,252

Received

Number of parcels

Value

31,971 $13,162,187

Although efforts have been made during the year to encourage merchants to complete these returns, the coverage is still very far from complete.

294. 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.

295. 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.

57

MECHANIZATION

296. The machine room staff and the punch and verifier operators have had to work under considerable pressure, and many hours of overtime have been necessary. One additional Junior Machine Operator was appointed during the year.

297. The machine room is now almost fully employed and although small ad hoc jobs can from time to time be fitted in, no additional routine or recurrent services involving the use of machine time can be undertaken. The following statistical matters are dealt with in the machine room: the trade statistics, labour accident statistics, police crime statistics, police traffic statistics, death statistics, and Urban Services' market rent schedules and hawkers licences. In addition it is committed to giving some machine time to the Royal Observatory, to the analysis of listener research statistics for Radio Hong Kong, and to the analysis of a pre-fluoridation survey conducted by Medical and Health Department.

298. The storage of cards has been eased by the acquisition of six steel cabinets capable of holding 686,400 cards. The following equip- ment was on order but had not been received by the end of the year: one sorter counter, one interpreter, six fixed control panels, and six manual control panels.

299. Designed and coloured cards have now been received for the Trade Statistics which eases the work of the punch operators and enables easy and quick recognition in the machine room.

300. The total number of cards used during the year was just over one and a half million.

RETAIL PRICE INDEX

301. The Retail Price Index was calculated and published monthly throughout the year. The figures for the end of each quarter, on the basis March 1947 = 100, are as follows:

June

Sept.

Dec.

March

1959

1959

1959

1960

Food

141

149

126

132

Rent

119

119

119

119

Clothing, including footwear

86

88

95

92

Fuel

117

117

104

104

Electric light

60

60

+

60

60

Cleaning.

92

92

91

92

Education

140

140

140

140

Tobacco and Cigarettes

113

113

113

124

Doctors and Medicines

104

104

104

103

58

June

Sept.

Dec.

March

1959

1959

1959

1960

Fares

100

100

100

100

Household Equipment

111

110

114

115

Hairdressing

111

111

111

113

Newspapers and Stationery

153

153

153

153

Shoe Repairs

78

77

80

79

Rates

100

100

100

100

...

General Retail Price Index

127

132

119

122

302. The trend of the General Retail Price Index during the year was normal although on a higher level than in the past. It fell in May and then moved slowly upward until it reached a peak of 132 in September 1959 which was the highest figure yet attained by the Index. It then fell to 119 in November and December and rose again in January and February.

303. The main groups covered by the index which were subject to price fluctuations over the year were food, clothing, fuel, and tobacco and cigarettes. Fluctuations in the prices of fresh vegetables and fresh fish were particularly marked.

ASSISTANCE TO OTHER DEPARTMENTS

304. Apart from the work for other departments done in the machine room and detailed in paragraph 297 above, regular returns have been submitted to the United Nations Organization and its specialized agencies, and returns from other departments have been collated for inclusion in the statistical supplement to the Government Gazette.

XII. THE PREVENTIVE SERVICE

GENERAL

305. Government's determination to tackle the narcotics problem in the Colony was reflected in an increase of 138 posts in the approved establishment of the Preventive Service towards the end of the previous financial year. The bulk of this increase was allocated to the Special Section of the Service dealing with anti-narcotic measures, and 130 Assistant Revenue Officers and one Woman Assistant Revenue Officer were recruited between May and August 1959. Most of the men were selected from redundant personnel of H.M. Dockyard, H.M.S. Tamar, the War Department and the R.A.F.

306. A new fast harbour launch was commissioned during the year in place of a slower and out of date vessel. The new launch was fully

59

employed in conveying ships' guards and rummage parties to and from ocean-going vessels in the harbour, and on preventive patrols within the harbour limits.

ORGANIZATION

307. The general organization of the Preventive Service remained unchanged throughout the year. One Senior Revenue Inspector, seven Revenue Inspectors, six Revenue Sub-Inspectors and twelve Assistant Revenue Officers left the Service either on retirement, transfer to other government departments, resignation or dismissal. This afforded an opportunity to promote a number of officers from the lower ranks but presented problems in maintaining the establishment.

TRAINING

308. The new recruits referred to in paragraph 305 above were trained during the year, in batches of up to 48 at a time. In addition, 22 Revenue Sub-Inspectors attended refresher courses in more advanced duties.

309. A beginners' English class was started for junior members of the Preventive Service, and received keen support, but attendance was limited by lack of space and training staff. The Police Force kindly agreed to allow staff stationed in the New Territories to attend their own classes held at the Police Training Camp.

310. The Senior Revenue Inspector in charge of training attended a Departmental Instructors Course held by H.M. Treasury, London, while on vacation leave. He and a Revenue Inspector engaged on training duties also attended courses held by the Labour Department in its 'Training Within Industry' programme. Both officers successfully passed these courses and were granted Trainers' Certificates.

311. A Revenue Inspector was attached for two weeks to the Water- guard Section of H.M. Customs and Excise at London Airport, while he was on vacation leave. This attachment resulted in several recom- mendations for adoption of new procedures in Hong Kong, which were under consideration at the end of the year.

DISCIPLINE

312. Three Revenue Inspectors, 1 Revenue Sub-Inspector and I Senior Revenue Officer were highly commended by the Director during the year. In addition, 2 Revenue Inspectors, 6 Revenue Sub-Inspectors, 2 Senior Revenue Officers and 3 Assistant Revenue Officers were com-

60

mended. One Revenue Inspector, 1 Revenue Sub-Inspector, 1 Revenue Officer and 7 Assistant Revenue Officers received favourable entries in their Records of Service for good work.

Punishments were awarded as follows:

313.

Admonishments

Reprimands

Severe reprimands

...

Deferments of Increment

Dismissals

SEARCHES

1958/59

1959/60

1

2

14

1

1

2

455 N

2

7

314. Two thousand four hundred and seventy five ocean-going vessels were inspected and in some cases guarded throughout their stay in port, and 20,426 native craft were searched within and without the harbour limits, as compared with 871 and 25,880 respectively during the previous year. Preventive Service launches steamed a total of 19,928 hours. Macau ferries were searched daily and cross-harbour motorboats serving the areas known to produce illicit Chinese liquor were also examined from time to time. Officers on duty at Kai Tak Airport examined 29,843 packages of freight, 1,631 of which were detained for payment of duty.

315. Patrols in the New Territories logged a total of 86,554 miles on mobile patrol duties during the year, as a result of which 33 arrests were made and 13 summonses issued for offences against the legislation enforced by the Preventive Service. At the Lo Wu border sub-station 460,507 passengers passed through the Baggage Examination Hall during the year.

316. Mobile land patrols in Kowloon and Hong Kong logged 95,679 miles during the course of preventive duties.

DUTIABLE COMMODITIES

317. Preventive Service launches were again the first line of defence in controlling the smuggling of tobacco, while harbour patrols con- tinued their efforts to suppress the illegal movement of ships' stores. The radar-equipped launches continued to prove their usefulness, especially in combating the high speed craft used by smugglers. Assistance was also given to the Police in connexion with illegal immigrants.

61

318. The outlying islands received regular visits by officers of the marine patrols, who frequently gave help and advice regarding licence conditions under the Dutiable Commodities Ordinance.

319. Pressure against syndicates concerned in the smuggling of Chinese prepared tobacco was maintained both on land and sea. Total seizures of this commodity exceeded those of last year by nearly 4,000 pounds.

320. Illicit stills producing Chinese type spirit were also hard hit and, with the establishment of better communications in the Cha Kwo Ling area and elsewhere in the New Territories, many culprits found it to be an unprofitable business.

321. The New Territories Section was mainly preoccupied with the control of Dutiable Commodities during the period under review. The Deep Bay area in particular, with its long coastline and its proximity to China and Macau, proved to be the main landing area for smugglers. 322. The following are the totals of dutiable goods seized in the New Territories:

Chinese Prepared Tobacco

Foreign cigarettes

Macau cigarettes

14,746 lbs. 19 lbs.

160 lbs.

31 lbs.

12 gallons

Local cigarettes

European type liquor

323. Operations against illicit distillers resulted in the seizure of:

Stills, native type

Fermenting material

Chinese liquor

168 units

682 gallons 6,368 gallons

324. A number of vehicles including bicycles, tricycles and a private car which had been engaged in conveying contraband were confiscated to the Crown.

325. Following the increase in duty on tobacco at the end of February 1960, there were indications of increased activity by smugglers.

NARCOTICS

326. Seventy nine seizures of narcotics and miscellaneous parapher- nalia were made during the period. Details of confiscations resulting from these seizures are given in Table 12. Close liaison continued to be maintained with the Police Narcotics Bureau.

327. Vessels and aircraft arriving in the Colony from suspected ports were subjected to extensive searches; many were guarded through- out their stay in port.

62

328. A disturbing feature disclosed by the year's operations was the marked increase in the smuggling of heroin and morphine at the expense of opium. On the other hand, the seizure of 6,209 grammes of diacetyl-morphine hydrochloride and 66,885 grammes of morphine hydrochloride, as compared with 1,199 grammes and 1,231 grammes for the previous year, illustrates the growing effectiveness of the measures being taken against this traffic.

329. The largest single seizure, which was also the largest of its kind so far made on an ocean-going vessel in Hong Kong, comprised 72 blocks of morphine weighing 54 lbs. 13 ozs. concealed in the chain locker of the forepeak of a vessel which had just arrived from Bangkok. A further major seizure of narcotics, and also the largest of the year for this particular type of drug, was made when 308 lbs. for raw opium in five sealed tins were found concealed behind an inspection panel in the cargo hold of an aircraft from Laos.

330. Dogs from the Police Dog Unit were successfully used on one occasion when they detected 3 lbs. 14 ozs. of raw opium hidden in sand boxes on the upper deck of a vessel which had arrived from Bangkok for docking in Hong Kong.

331. A Representative of the department, together with others from the Secretariat for Chinese Affairs and the Hong Kong Police, attended the South-East Asia Regional Conference on illicit drug traffic held at Lahore, Pakistan in January 1960: the conference was arranged by the International Criminal Police Organization.

STRATEGIC COMMODITIES

332. Following the relaxation of controls over Strategic Commodi- ties, there were no seizures of note during the year.

CERTIFICATES OF ORIGIN

333. The following table shows the number of inspections carried out by officers of the Industry Section compared with those made in the three previous years:

1956/57

1957/58

1958/59

1959/60

+

42,735

42,171

42,554

58,461

Further details of the work carried out by this Section will be found in paragraphs 220 and 221.

63

EMERGENCY (AGRICULTURAL POISONS) REGULATIONS

334. During the latter part of 1959 all Sections of the Preventive Service were alerted in connexion with the widespread use of parathion as an agricultural insecticide. It is highly dangerous to animals and humans unless handled with extreme care, and the use of it is speci- fically prohibited by law.

335. Intensive checks on ships' manifests and import declarations were instituted, and land and sea patrols were intensified, resulting in several seizures of the poison together with empty containers and a bag of die components. Nineteen persons were charged in connexion with these offences.

MERCHANDISE MARKS

336. Twenty nine infringements of the Merchandise Marks Ordin- ance were detected and dealt with by the Preventive Service during the year. Commodities involved in those offences included books, music books and soap. In all cases, the offending goods were ordered to be confiscated.

BULLION

337. Gold seizures totalled approximatey 56 lbs. The largest of these was made on a motor junk after its arrival from Macau; the gold was concealed in secret compartments in the wheelhouse and engine room. Two other seizures were made at Kai Kak Airport during the course of routine examination of outgoing air freight and a crew member's personal effects.

COURT ACTIONS

338. The total number of actions was slightly higher than in the previous year. The number of persons summonsed or arrested was rather lower than in the previous two years, but total fines increased appreci- ably as illustrated below:

Actions Arrests

Fines

1957/58 1,679

1958/59

1959/60

1,150

1,200

540

404

387 $230,952 $165,441 $251,685

339. Details of major confiscations ordered by the Courts other than those of dutiable commodities and dangerous drugs are given in Table 13.

64

XIII. LEGISLATION

340. In April, the Dutiable Commodities (Amendment) Regulations, 1959, were published as Gazette Notification A. 20 of the 7th April, 1959, prescribing revised fees to be charged for the services of revenue staff in attendance at general bonded or licensed warehouses. The revised fees became necessary as the result of the reorganization of the Preventive Service, which involved the introduction of new ranks and the restyling of others. A similar notification, No. A. 21 published on the same date, amended the fees chargeable under the Importation and Exportation Ordinance (Chapter 50) for attendance of revenue staff 'to facilitate or certify proof of the composition, manufacture, or origin of any article imported, exported, or to be exported.'

341. On the 12th May, the Dutiable Commodities (Amendment) (No. 2) Regulations, 1959, were published as Gazette Notification A. 32. The purpose of these was to delete from the principal regulations all reference to proprietary medicines and toilet preparations, duty on which was abolished by resolution of the Legislative Council under Section 4 of the Dutiable Commodities Ordinance (Chapter 109) on the 25th February, 1959. This was followed on the 3rd June by the enact- ment of Ordinance No. 18 of 1959, which amended the Dutiable Com- modities Ordinance (Chapter 109) in such a way as to complete the deletion of all reference to proprietary medicines and toilet preparations from the Ordinance and subsidiary legislation, following the abolition of duty on these items.

342. Gazette Notification A. 48 of 24th July, 1959 notified an amend- ment to the Export Control Order, 1950. Its purpose was to delete Iraq from the list of countries given in paragraph 1 of the schedule to the principal order, following the cessation of that country's membership of the scheduled territories (formerly known as the Sterling area). This action meant that special licences would in future be required for the export of all goods to Iraq.

343. Import of acetic anhydride into the Colony except under and in accordance with an import licence granted by the Director of Com- merce and Industry was prohibited by the publication of the Importation of Acetic Anhydride (Prohibition) Regulations, 1959, as Gazette Notifica- tion A. 70 of the 17th November, 1959. This step was taken because the chemical can be used in the manufacture of heroin. Acetic anhydride can also be used for certain industrial purposes, but inquiries conducted

65

by the department established that it is not in fact used by local manufacturers.

344. Also published on the same date, as Gazette Notification A. 71, were the Importation (Prohibition) (Strategic Commodities) Regulations, 1959, which revoked and re-enacted, with alterations, the Importation (Prohibition) (Specified Articles) Regulations, 1952, to effect a consider- able relaxation of import controls. The major difference between the two sets of regulations lay in the schedule. The new one for the most part quotes in full the revised embargo lists announced in 1958 and published in the Board of Trade Journal on 15th August that year, and it was hoped that substitution of the new schedule with its precise definitions for the previous one with its blanket definitions would reduce the number of applications for licences submitted to the department and would generally facilitate the flow of trade, without relaxing the essential control over strategic goods.

345. Gazette Notification A. 72, also of 17th November, 1959 notified the enactment of the Exportation (Prohibition) (Strategic Commodities) Regulations, 1959, which had the same effect over exports as, and were complementary to, the regulations described in the preceding paragraph.

346. Prior to 17th November, 1959, the importation of radioactive materials and radiating apparatus of all types was controlled by the Importation (Prohibition) (Specified Articles) Regulations, 1952, which were revoked on that day by the Importation (Prohibition) (Strategic Commodities) Regulations, 1959, described in paragraph 344 above. It was however considered desirable to retain control over the importa- tion of these items and, on the 17th November the Importation (Prohibition) (Radiation) Regulations, 1959, were published as Gazette Notification A. 73 to achieve this purpose.

347. On Budget Day, 24th February, 1960, the Financial Secretary announced that duty payable on hydrocarbon light oils and tobacco had been increased by about 50 per cent and 40 per cent respectively. To effect these changes two resolutions were passed by the Legislative Council under Section 4 of the Dutiable Commodities Ordinance (Chapter 109), which were published as Gazette Notifications A. 22 and 23 of 16th March, 1960.

348. On 22nd March, 1960, the Exportation (Imperial Preference Certificates) (Amendment) Regulations, 1960, published as Gazette Notification A. 25 amended the principal regulations in two respects. Firstly, the provisions in the principal regulations with respect to the

66

suspension or revocation of the appointment of approved accountants were considered unsatisfactory for two reasons:

(a) The principal regulations provided that the appointment of any person to be an approved accountant might be revoked by the Director after reference to the Authorized Auditors Board. It was considered preferable to provide that the Director might revoke such an appointment on certain very limited and specified grounds. One of the new regulations contained the necessary provisions to achieve this;

(b) It was thought that the power to suspend the appointment of any person to be an approved accountant should not, as it was prior to the amending legislation, be a power to suspend indefinitely, but that suspension should be for a fixed period of three years. It was also considered that there should be an appeal to the Governor in Council against a decision of the Director to suspend such an appointment. The necessary provisions to attain this result were contained in another of the new regulations. Secondly the new regulations substituted a reference to ‘Commonwealth' Preference for the existing references to 'Imperial' Preference through- out.

349. Preliminary work on the revision of legislation enforced by the department continued throughout the year and, in February 1960, the Hon. Attorney General allotted a Crown Counsel to undertake this task full time. Considerable progress was made with the Dutiable Commodities Ordinance and Regulations before the end of March 1960.

XIV. ACCOUNTS AND ADMINISTRATION BRANCH

GENERAL

350. The Senior Accountant and Secretary, a nominated post for Senior Executive Officers Class II, is directly responsible to the Deputy Director (formerly Assistant Director, Administration) for all establish- ment matters, general administration of the department, accounts and stores, which are the concern of the Accounts and Administration Branch. The branch is 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.

351. The distribution of branches and sections between the three divisions of the department is indicated in Table 7, while Table 14 shows the numerical distribution of posts throughout the department.

67

OFFICE ACCOMMODATION

352. Early in the year work commenced on a comprehensive pro- gramme of alterations to the second, third and fourth floors of the Fire Brigade Building (north side). The alterations, which included the enclosure of all remaining verandahs, were designed to accommodate the new staff being recruited for the Development Division and also to rationalize the allocation of offices among branches. The opportunity was taken to provide a much-needed Conference Room, which could also be used for meetings of the Trade and Industry Advisory Board. The work was completed by the end of July 1959.

353. By the end of the year overcrowding had again become apparent and, spurred by the urgent need for the Fire Brigade to expand on the south side of the building, attempts were made to obtain space in buildings nearby, but without success. At the same time preliminary steps were taken towards securing additional space in the Fire Brigade Building on the departure of the Social Welfare Department during the forthcoming year.

354. The Eastern and Western District Excise Offices prepared plans to move to new accommodation in 1960/61, the former to the new Causeway Bay Magistracy building, and the latter to temporary offices on Stage III of the Central Reclamation, which would also include provision for examining passengers' baggage and cargo coming in on the Macau ferries.

355. Consideration was given to the possibility of establishing a branch office in Kowloon, a facility which it was thought would be welcomed by the business community.

BUILDING PROGRAMME

356. In March 1960, in anticipation of the proposed Tai Lam Revenue Station being raised from Category C to B in the 1960/61 estimates, a detailed schedule of the accommodation required was sub- mitted for approval. The station is required to combat smuggling in the area by land and sea, and to enable expanding work in connexion with dutiable commodities and factory inspections on the western side of the New Territories to be supervised more closely.

357. Reprovisioning of the office at the Tsim Sha Tsui Ferry Con- course and the Salisbury Road barracks was deferred pending an overall development plan of the area.

68

358. Progress in the provision of departmental quarters is described in paragraphs 400 to 403.

359. The permanent development of the Whitfield site for an Urban Services depot was deferred for a further year, thus removing the urgency for reprovisioning the department's godown for seized and confiscated goods. The problem was resolved later in the year by the approval of plans for a temporary godown on Stage III of the Central Reclamation. This arrangement will suffice until the reclamation settles sufficiently to allow the construction of permanent buildings.

Establishment

STAFF

360. The increase in establishment of twenty six posts compared with the previous year was due mainly to the employment of additional staff for the Industry, Export Promotion and Overseas Trade Relations Branches, and the Industry Section of the Preventive Service. Forty eight out of a total of 807 posts were filled by expatriate officers.

Retrenchment

361. The post of executive officer in charge of the Supplies Branch was retrenched during the year. Similarly, it was found possible to dispense with two clerical posts in the Trade Licensing Branch, mainly due to relaxations in strategic controls.

362. Following the closure of additional firewood yards, it was found necessary to give six watchmen notice of their intended retrench- ment at the end of March 1960. One of the posts was, however, transferred to the Accounts and Administration Branch to provide a watchman to look after the confiscated goods godown, while two others were retained as a leave reserve. It was found possible to offer re- employment to the remaining three officers elsewhere in the department.

Recruitment and Training

363. Expansion of the Trade Officer grades, mainly to cater for an intensified industrial and trade development programme, necessitated several advertisements in the press for suitable candidates to fill the additional posts. On the advice of the Public Services Commission, twelve vacancies were subsequently filled, including four promotions of serving officers in the grades. Also on the advice of the Public Services Commission, the recruitment of an officer to fill a newly-created post of Principal Information Officer in the London Office was referred to the Secretary of State for the Colonies.

69

364. Mr. M. T. TUNG, Assistant Statistical Officer, was awarded a merit visit to the United Kingdom. The awards are made in conjunc- tion with the British Council with a view to widening the background of local officers, and to give a greater appreciation of the British connexion. During his visit Mr. TUNG worked on trade statistics at the London Office and with H.M. Customs, as well as undertaking some recreational and instructional tours under the auspices of the British Council.

365. During their vacation leave in the United Kingdom, several officers underwent courses of study or periods of attachment.

Preventive Service

366. Thirteen Revenue Officers Class I and nine Revenue Officers Class II were regraded as Revenue Sub-Inspectors, while three Revenue Officers Class II were regraded as Senior Revenue Officers. One remain- ing Revenue Officer Class I was transferred to the Urban Services Department and Urban Council as an Overseer, thus completing the reorganization of the Preventive Service commenced during the previous

year.

367. The recruitment and training of Preventive Service personnel are dealt with in Chapter XII.

Staff Changes

368. Mr. H. A. ANGUS, M.B.E., Director of Commerce and Industry, was raised to the rank of Commander of the Most Excellent Order of the British Empire, in the Queen's Birthday Honours List, 1959. He left the Colony on vacation leave on 24th June, 1959, and resumed duty on 8th January, 1960.

369. Mr. E. G. A. GRIMWOOD, Director of the London Office, was appointed an Officer of the Most Excellent Order of the British Empire in the same Honours List.

370. Mr. D. C. BARTY, O.B.E., Cadet Officer Class I, returned from vacation leave on 5th June, 1959, and was appointed to act as Director of Commerce and Industry during the absence of Mr. ANGUS. He was promoted to Administrative Officer, Staff Grade B, with effect from 1st July, 1959.

371. Upon being relieved by Mr. B. I. BARLOW, Cadet Officer Class II, Mr. T. D. SORBY, Cadet Officer Class II, relinquished his post as Assistant Director (Administration) and proceeded on vacation leave

70

on 6th July, 1959. He was subsequently promoted to Administrative Officer, Staff Grade C, with effect from 1st July, 1959.

372. Mr. P. V. DODGE, Cadet Officer Class II, returned from vaca- tion leave and assumed duty as Assistant Director of the Development Division with effect from 26th May, 1959. On 1st July, 1959, he was promoted to Senior Administrative Officer.

373. Mr. B. I. BARLOW, Cadet Officer Class II, was promoted to Senior Administrative Officer with effect from 1st July, 1959. On 15th February, 1960, he ceased to act as Deputy Director on transfer to the Social Welfare Department, and Mr. D. C. BARTY assumed the post.

374. Mr. T. C. CHENG, Cadet Officer Class II, was promoted to Senior Administrative Officer with effect from 1st July, 1959, and transferred to the Secretariat for Chinese Affairs on 10th August.

375. Mr. J. J. RIDGE, newly-appointed Administrative Officer, arrived in the Colony on 9th January, 1960, and assumed duty as Administrative Officer in place of Mr. D. AKERS-JONES, who transferred to the New Territories Administration on 20th January.

376. Messrs. W. E. MANSON and T. N. LEIGH-BENNETT, Trade Officers, were promoted to Senior Trade Officers with effect from 1st April, 1959. Mr. Leigh-Bennett returned from vacation leave on 25th November, 1959.

377. On 12th October, 1959, Mr. H. M. BULLARD, who had been appointed a Senior Trade Officer on a three-years agreement, arrived in the Colony and assumed charge of the Overseas Trade Relations Branch.

378. Mr. C. T. STRATTON, Statistician was confirmed to the pension- able establishment with effect from 4th March, 1960.

379. Messrs. J. D. MCGREGOR and W. DORWARD, Assistant Trade Officers, were promoted to Trade Officers with effect from 1st April, 1959, and 1st January, 1960, respectively.

380. Mr. A. G. TRICKETT, Assistant Trade Officer, was appointed to act as Trade Officer with effect from 4th August, 1959.

381. On 4th June, 1959, Mr. L. C. MILLINGTON, Assistant Chief Preventive Officer, was appointed to act as Chief Preventive Officer following the departure of Mr. W. H. E. COLLEDGE on leave prior to retirement. He was subsequently promoted to the post with effect from 6th January, 1960, upon which Mr. A. L. TOKLEY, Senior Revenue

71

Inspector, was promoted to the vacant post of Assistant Chief Preventive Officer.

382. Mr. R. W. NORRIS, Assistant Chief Preventive Officer, returned from vacation leave and resumed duty on 29th April, 1959.

383. Mr. F. G. CARROLL, Senior Revenue Inspector, was appointed to act as Assistant Chief Preventive Officer vice Mr. TOKLEY, who departed on vacation leave on 27th November, 1959.

384. During November 1959, Mr. G. A. D. RICH, Assistant Trade Officer, and Mr. W. J. ANDERSON, O.B.E., Hong Kong Government Representative in Tokyo, died in the Queen Mary Hospital. Mr. ANDERSON was on one of his periodic visits to the Colony at the time.

Promotion prospects for Class V Officers

385. It was found possible to fill several Class V posts in the department by promoting serving officers, while one officer was trans- ferred on promotion to the New Territories Administration.

386. A Clerical Assistant, who by studying in his spare time succeeded in passing the necessary qualifying examinations, was promoted to Clerk.

Revenue

ACCOUNTS AND STORES

387. Net revenue collected by the department amounted to $126,283,243 an increase of $10,340,071 over the previous year. Details are given in Tables 9 to 11 and in Chapter X.

Expenditure

388. Expenditure from departmental votes amounted to $6,232,714, which was $472,586 under the approved estimates. Personal emoluments accounted for $5,382,400, an increase of $818,147 over the previous year.

Treasury and Audit Inspections

389. The report was received of the organization and methods survey of the accounting arrangements in the department, carried out by a treasury inspection team in the latter part of 1958/59. The report contained a number of recommendations. These were examined in detail and many were accepted and introduced.

390. A permanent audit examination section is attached to the department, which carried out a running audit on the department's

accounts.

72

Confiscated Goods

MARINE DEPARTMENT LIBRAR

391. Close supervision was maintained over the main store and associated records in an effort to maintain efficiency and minimize the number of errors brought to light by Audit and Treasury inspections. No serious matters were raised during the year under review. At the end of March 1959, seized and confiscated goods stored by the depart- ment were valued at over $117,000.

392. The procedure for the storage, documentation and disposal of seized and confiscated goods was revised to take into account several changes necessitated by experience. The system otherwise continued to work well, and no major accounting difficulties were experienced.

393. Confiscated liquor, tobacco, and cigarettes are sold at an authorized rate of retail price less 20 per cent, the only free issues being to two approved charitable organizations. Compared with the previous years the quantities of these items sold or given away, and the revenue produced during the year, were as follows:

1959/60

1958/59

Sold:

Liquor

4,020 quarts for

$ 21,966

Cigars

Tobacco..

3,075 pieces for Cigarettes 2,412,348 pieces!

17,366 lbs. for

$ 66,262

1,809 quarts for 1,300 pieces)

$17,903

1,660,816 pieces for

$43,541

$111,145

873 lbs.

Total

$199,373

$61,444

Distributed free:

Liquor

Cigarettes

Tobacco..

2,036 bottles valued at $10,003 153,020 pieces valued at $3,733 1,529 lbs. valued at $9,784

Total

$23,520

3,351 quarts valued at $10,154 1,285,751 pieces valued at $23,579 9,180 lbs. valued at $58,752

$92,485

The substantial increase in sales, and corresponding decrease of free issues, is attributable to the introduction of charges for issues to other departments, a procedure initiated towards the end of 1957/58. There is also an overall increase in the value of the confiscated goods handled, due to the high rate of seizures by the Preventive Service.

394. Proceeds of cash sales are apportioned between the appropriate revenue subheads for the duty concerned and the balance to the Revenue Reward Fund, while the credits resulting from issues to other

73

departments go entirely to the Fund. Total credits during the year resulting from sales and issues to departments were:

Revenue Head 1, Duties: Subhead 2-Liquor Revenue Head 1, Duties: Subhead 4--Tobacco Revenue Reward Fund

Total

WELFARE

....

$ 15,519

$ 16,418

$167,436

$199,373

General

395. The Deputy Director, who is the departmental welfare officer, was available at all times to officers who wished to discuss with him matters affecting their own or their families' welfare.

396. Advances of a month's salary were made to two officers for meeting funeral expenses following deaths in their immediate families.

Housing of Local Officers

397. The thirty members of the staff who formed themselves into a Co-operative Building Society in 1957 continued with their scheme, and on 28th August the building contract was signed. The contract price being slightly higher than anticipated, it proved necessary for the Society to seek an additional loan from Government, which was approved.

398. Several members of the staff together with officers of other departments made preparations to form another Co-operative Building Society, but by the end of the year had not been able to locate a suitable site.

399. Advances of a month's salary towards the expenses involved were made to nine officers moving to new accommodation.

Departmental Quarters

400. In December 1959, authority was given for the number of quarters for local officers of the Preventive Service on a site at Fat Kwong Street, Kowloon, to be increased from forty eight to ninety. This increase was made in order to make the maximum use of the site. Prior to this, the project was upgraded to Category B(i) in the 1959/60 estimates and a private architect was commissioned to prepare sketch plans. These were finally approved in February 1960. At the end of March, arrangements were in hand to seek the upgrading of the project to Category A(ii) so that site formation and construction could proceed.

74

401. Authority was also given during the year for a site at King's Road, North Point, to be tentatively reserved for the development of a further eighty flats, a new project provisionally approved for inclusion in Category C of the 1960/61 Public Works programme.

402. Construction of the new Magistracy at the Fan Ling crossroads began in February 1960. During the previous year the department was allotted eight flats in this proposed building, which are to be used as a mess for Revenue Sub-Inspectors posted at the Fan Ling Revenue Station.

403. Following a relaxation in the controls imposed on strategic commodities, the number of officers based on the Sham Tseng Revenue Sub-station at the San Miguel Brewery was reduced, and consequently part of the quarters rented from the Brewery were relinquished on 31st March, 1960, on expiry of the tenancy agreement.

Education

404. Messengers, office attendants, and clerical 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. An executive officer and two clerks participated in a course on business management. Newly-appointed clerks were urged to attend the Government Clerical Evening Classes.

Leave

405. 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 again made it impracticable to require them to take all the leave to which they were entitled.

406. Due to better working conditions during the past two years, the general health of staff continued at a satisfactory level. Two officers were admitted to hospital with tuberculosis and were granted sick leave for five to six months, compared with two during the previous year and four during 1957/58. Other long absences from duty on medical grounds were attributable to maternity leave, granted to seven officers for approximately two months each.

407. Only one serving officer failed to pass the necessary medical examination for promotion.

75

Revenue Inspectors' Mess

408. The Revenue Inspectors' Mess had another successful year and there were no further catering troubles. An increase has been noted in the numbers of members using the Mess, particularly at lunchtime. 409. Financially, the Mess continued to be healthy and purchased outright a table-model television set and a new piano.

410. Several social functions were held during the year, the Christmas dance being particularly successful.

Canteens

411. On 6th April, 1959, the difficulties experienced in running the Clerical and Revenue Officers' Canteens on the sixth floor of the Fire Brigade Building culminated in the caterer relinquishing his appointment. The Revenue Officers' Canteen continued to function as a rest and recreation room, while the Clerical Canteen was closed until the position could be re-examined. The furniture in the Revenue Officer's Canteen was renovated early in the year, and in June some new items were supplied. Together with the rest of the building the room was repainted in September.

412. Later in the year the Clerical Canteen was reopened, to allow clerical officers and related grades to take their lunch in the room, the meals themselves being brought in from nearby restaurants. The room was also used for recreation and for lectures by departments accom- modated in the Fire Brigade Building.

Amenities

413. A new office inter-communication system was installed during May 1959. It was a great success and soon proved its worth in speeding up the transaction of business between sections.

414. Air-conditioning was installed in the east wing of the third floor of the Fire Brigade Building. Most of the equipment was made in Hong Kong, but the more complex parts were imported, the whole being assembled as a packaged unit and installed by the local manu- facturer. This installation enabled the department to release several room units.

415. In February 1960, the old barracks at Salisbury Road were redecorated and action was in hand at the end of the year to supply additional wash basins, fans, and a water heating appliance.

416. Preliminary inquiries were made during February with a view to supplying electricity to Man Kam To Revenue Sub-station, which

76

has to rely on pressure lamps, and it was hoped that a connexion would shortly be made from the generator at the nearby Police post.

Sports and Recreation

417. In November 1959, a team entered for the inter-departmental relay race at the Urban Services Department Annual Gala held at the Victoria Park Swimming Pool. The team finished sixth in a field of eighteen.

418. The department celebrated Christmas with a children's party on 19th December. About three hundred children attended the party in the grounds and clubhouse of the Indian Recreation Club, which were again kindly made available by the Club Committee.

419. Football and basketball have attracted a considerable follow- ing in the department, principally among the Preventive Service. The football team played several successful games, and at the end of the year was considering seeking admission to the League. Lack of funds hampered the various teams from extending their activities; the Colonial Secretary approved a grant of $1,000 to the department's welfare fund for this purpose.

HONG KONG,

23rd June, 1960.

H. A. ANGUS,

Director of Commerce and Industry.

77

:

79

TABLE 1

TOTAL VALUES OF IMPORTS INTO AND EXPORTS FROM

HONG KONG, BY COUNTRIES, 1958 AND 1959

Imports

Total Exports

Country

1958

1959

± % 1958

1959

± %

British Commonwealth

(HK$ million)

Exports

Re- Exports

1959

United Kingdom

530.89

573.72

Malaya

Australia

Aden

102.84

123.06

112.77

133.17

+++

8

393.24

462.19

20

282.23

380.11

18

75.94

85.27

+i+

18

439.41

22.78

1

212.57

167.54

12

60.31

24.96

0.06

0.14

9.27

9.95

8.41

1.54

4

Brunei

2.43

3.68

2.41

1.27

North Borneo

34.15

31.76

45.32

22.54

15.84

6.70

Sarawak

17.06

23.97

10.54

13.43

Canada

42.96

64.58

51.16

73.63

60.53

13.10

Central African Federation...

4.59

7.05

9.39

9.18

8.90

0.28

Ceylon

5.95

5.66

18.82

30.04

26.91

3.13

...

Cyprus

0.09

Gibraltar

Malta...

0.15

5.29

..

{

3.37

3.27

0.10

0.67

0.51

0.17

1.61

1.55

0.06

Fiji

Gambia

0.02

1.01

4.62

5.93

5.45

+ 50

0.47

0.55

+ 15

0.54

Ghana

Sierra Leone.......

India ...

Jamaica

Trinidad and Tobago

West Indies, n.e.s.

:

19.09

16.38

15.87

0.51

8.15

8.14

0.01

65.82

47.94

9.39

11.61

1.94

9.67

0.37

4.97

4.51

0.46

0.26

0.02

25.80

11.47

11.08

0.39

0.02

10.28

...

10.09

0.19

Kenya

Tanganyika

Uganda

16.56

18.94

18.73

0.21

34.32

5.30

5.16

0.15

65.65

27.28

18.36

1.79

1.79

0.01

Zanzibar

3.04

0.91

0.84

0.07

80

TABLE 1-Contd.

Imports

Total Exports.

Country

1958

1959

± %

1958

1959

± %

British Commonwealth—Contd.

(HK$ million)

Re- Exports

Exports

1959

Mauritius

New Zealand

Nigeria

Pakistan

6.39

4.22

6.89

8.14

7.20

0.94

2.52

4.37

19.91

18.07

14.53

3.53

0.02

5.27

42.35

45.37

44.31

1.07

...

33.40

145.76

+ 50

4.04

6.27 + 15

4.11

2.15

South Africa

48.25

59.12

30.01

25.34

21.83

3.51

British Oceania, n.e.s.

2.41

1.21

2.41

3.58

3.08

0.51

British Commonwealth, n.e.s.

0.04

0.04

0.37

0.62

0.46

0.15

1,059.12 1,300.33

+ 23

1,182.81 1,309.89

+ 11

1,030.84

279.05

Asia

China...

Indonesia

Japan

Thailand

Burma

+

Cambodia

Formosa

Iran

Iraq

Israel...

41

Jordan

Lebanon

Persian Gulf Sheikdoms

Saudi Arabia and Yemen

Syrian Region of the United Arab

Republic

1,396.92

1,034.17

94.68

102.84

+1

26

155.76

114.33

27

8.87

105.46

9

210.75

75.17

64

46.97

28.19

596.99

769.60 + 29

120.16

231.11

+ 92

93.50

137.61

160.29

196.88 + 23

217.01

146.82

32

79.67

67.15

15.30

33.13

29.97

36.51

25.10

11.42

50.04

59.31

25.48

37.12

15.46

21.66

49.84

102.33

61.72

58.48

9.53

48.94

12.94

8.75

4.61

4.14

0.07

7.22

6.71

0.50

29.33

1.57

0.07

1.50

49

4

1.20

0.86

0.34

63.35

0.08

42.37

3.52

1.70

1.82

15.54

15.91

13.99

1.91

4.81

7.89

5.69

2.19

2.16

2.07

1.25

0.82

81

TABLE 1—Contd.

Imports

Country

1958

1959

土%

1958

Total Exports

1959

+ %

(HK$ million)

Re- Exports

Exports

1959

Asia-Contd.

Laos

Macau

North Korea

North Vietnam

Philippines

South Korea

0.15 39.90

0.10

27.01

13.59

4.76

8.83

43.79

57.81

64.89

12.48

52.41

0.03

6.74

...

0.04

9.00

0.02

8.98

13.60

13.59

36.11

16.02

2.30

13.72

6.93

12.54

+ 49

4

55.73

49.13

28.92

20.22

8.23

5.81

52.81

44.10

3.19

40.91

South Vietnam

5.26

33.45

20.93

17.90

5.46

12.44

Asian Countries, n.e.s.

0.03

1.41

1.72

1.24

0.47

2,501.50 2.479.23

1

1,115.06

964.03

14

372.37

591.66

Europe

Belgium

60.08

73.94

German Federal Republic

(Western)

135.15

136.44

Switzerland

130.97

112.00

+

+1

23

20.28

22.35

+ 10

6.15

16.20

I

64.65

83.55

+

29

72.03

11.52

14

3.90

3.50

10

2.20

1.30

20

Albania

Bulgaria

·

0.52

Germany, East

1.13

0.01

0.01

4.31

Hungary

0.16

**

Poland

4.47

+ 21

0.46

+ 28

0.03

0.43

Rumania

0.11

Austria

Czechoslovakia

Denmark

11.24

5.22

0.15

0.49

0.37

0.12

4.75

5.26

10.20

8.09

5.53

8.00

6.34

1.66

82

TABLE 1-Contd.

Imports

Total Exports

Country

1958

1959 ± %

1958

1959

± %

Europe-Contd.

Finland

Greece

Iceland

...

Irish Republic

Portugal

...

Spain...

...

Turkey

Yugoslavia

France Italy

Netherlands

Norway Sweden

...

..

U.S.S.R.

(HK$ million)

Exports

Re- Exports

1959

10.82

0.77

0.43

0.35

0.96

1.13

0.93

0.20

0.02

0.02

0.93

0.81

0.12

8.83

5.16

1.94

0.60

0.40

0.20

3.02

0.30

0.17

0.13

0.06

1.10

0.76

0.34

+ 21

0.63

0.01

+ 28

0.01

29.07

30.07

9.90

6.77

4.24

2.54

55.31

58.21

9.98

18.80

16.08

2.72

75.95

106.07

23.17

22.73

14.44

8.29

5.47

...

7.67

9.91

16.69

11.62

5.08

18.40

...

24.66

17.55

25.66

23.45

2.21

0.11

...

1.08

549.85

592.51 + 8

170.18

213.87

+ 26

160.47

53.40

America

United States of America

439.56

516.68

Argentina

...

1.25

2.96

Bolivia

...

+

18

326.35

591.01

+ 81

563.84

27.17

1.24

1.04

0.69

0.35

0.49

0.44

0.05

Chile ... Colombia Ecuador

Paraguay Peru

1.15

0.83

0.32

...

·

2.73

2.71

0.01

0.90

0.04

+ 56

9.72

1.53

+ 17

1.41

0.13

0.30

0.29

0.01

0.04

3.07

2.31

0.76

Uruguay

Brazil

1.49

+

0.05

0.04

0.01

12.95

12.97

0.82

0.87

0.45

0.41

83

TABLE 1-Contd.

Imports

Country

1958

1959

± %

1958

America-Contd.

Costa Rica

Dominican Republic

...

French and Netherlands West Indies

El Salvador

Guatemala

Honduras

Nicaragua

...

Panama Cuba

Haiti

Mexico Venezuela

Africa

-

Totol Exports

1959

± %

(HK$ million)

Exports

Re- Exports

1959

0.92

0.90

0.02

0.01

1.64

1.48

0.16

0.44

0.97

1.37

1.30

0.07

7.75

5.68

2.07

28.76

|

0.92

0.86

0.06

2.30

2.25

0.05

+ 56

3.19

1.24

+ 17

1.19

0.05

1.64

18.89

15.80

3.09

4.37

4.75

3.93

3.38

3.23

0.15

...

1.96

0.91

0.90

0.01

0.12

4.47

2.41

4.87

4.08

0.79

0.01

0.01

15.64

20.05

17.65

2.40

460.12

548.68 + 19

390.83

666.49

+ 71

628.33

38.16

Algeria

0.01

1.82

1.66

0.16

Morocco

0.02

0.37

1.86

2.68

1.55

1.14

...

Tunisia

0.14

0.14

Belgian Congo

0.56

0.01

8.18

12.10

12.06

0.04.

Egyptian Region of the United

Arab Republic

+ 189

9

0.06

1.37

0.28

0.29

0.17

0.12

Ethiopia

3.73

3.82

3.79

0.03

Libya...

2.71

2.59

0.12

Portuguese East Africa

2.20

24.07

(Mozambique)

1.02

13.00

3.30

9.71

84

TABLE 1-Contd.

Imports

Total Exports

Country

1958

1959

± %

1958

1959

土%

Africa Contd.

Portuguese West Africa

Sudan

Africa, n.e.s.

French Equatorial and West

Africa

Madagascar

(HK$ million)

Exports

Re- Exports

1959

0.01

1.06

0.56

0.50

2.20

1.97

24.07

3.99

3.12

0.87

0.42

10.37

189

7.19

3.18

0.01

0.10

36.72

13.29

13.10

0.19

0.33

0.17

3.57

2.54

+

2.31

0.23

3.18

9.18

+189

74.68

67.82

9

51.53

16.29

Oceania

United States Oceania

0.45

5.07

Oceania, n.e.s.

0.37

0.60

+ 598

31.24

31.94

18.81

13.13

11.30

12.36

0.81

5.67

+598

42.54

44.29

+

+

4

8.63

3.72

4

27.44

16.85

Postal Packages

19.16

13.77

28

12.69

11.15

12

11.15

19.16

13.77

28

12.69

11.15

12

11.15

4,593.73 4,949.37 + 8 2,988.80 3,277.54

302.16 + 17

317.50

+

Total Merchandise ...

Total Gold and specie

257.87

Grand Total

4,851.61

5,251.53

262.02

8 3,250.82 3,595.04

+ +

+

10

2,282.13

995.41

21

1.19

316.31

11

2,283.32

1,311.72

TABLE 2

TOTAL VALUES OF IMPORTS INTO AND EXPORTS FROM HONG KONG BY SECTIONS AND DIVISIONS OF THE STANDARD INTERNATIONAL TRADE CLASSIFICATION, 1958 AND 1959

(HK$ million)

Re-

Section and Division

1958

Imports

1959

Total Exports

Exports

exports

±%

1958

1959

±%

1959

Section 0: Food

Live animals

231.81

223.62

4

2.14

Meat and meat preparations

55.64

84.35

Dairy products

102.40

109.16

Fish and fish preparations

115.91

101.48

Cereals

335.30

315,57

Fruits and vegetables

235.15

248.37

1 ++ | | +

4.95

+131

0.04

4.91

+52

7.44

6.50

13

2.71

3.79

7

18.18

11.14

39

0.41

10.72

12

45.29

33.80

25

12.31

21.49

6

79.04

34.13

57

19.40

14.73

6

123.27

133.88

+ 9

33.27

100.61

Sugar and sugar preparations

89.83

58.62

35

45.48

34.15

25

26.93

7.22

Coffee, tea, cocoa and spices

49.11

47.63

3

20.39

17.08

16

1.59

15.49

Feeding stuffs for animals

6.13

10.72

+ 75

2.74

2.79 + 2

0.52

2.28

Miscellaneous food preparations

33.81

38.52

+14

30.33

32.20

+ 6

22.41

9.79

1,255.08

1,238.03

1

374.31

310.61

17

119.58

191.03

Section 1: Beverages and tobacco

Beverages

27.40

28.04 + 2

8.76

8.30

LA

5

1.67

6.62

Tobacco and tobacco manufactures

74.39

79.97 + 8

13.39

18.31

+37

12.28

6.03

101.79

108.00 + 6

22.15

26.61

+ 20

13.95

12.65

Section 2: Crude materials, inedible,

except fuels

Hides, skins and fur skins, undressed

5.48

5.40

2

5.27

Oil seeds and oil nuts

29.77

37.40

+ 26

10.42

Crude rubber, including synthetic

18.61

22.62

+22

1.80

5.14 18.27 1.91

2

2.13

Wood, lumber and cork

60.95

75.76

24

10.87

11.66

Pulp and waste paper

1.68

2.14

+ 27

1.14

1.91

[++++

3.01

+ 75

0.04

18.23

6

0.02

1.90

7

4.61

7.05

+ 69

1.08

0.84

85

Section and Division

TABLE 2-Contd.

Imports

(HK$ million)

Total Exports

1958

1959 土%

1958

1959

Exports

Re- exports

±%

1959

Section 2: Crude materials, inedible,

except fuels-Contd.

Textile fibres and waste

251.80

267.48

+ 6

Crude fertilizers and crude minerals

9.95

11.73

+18

Ores and metal scrap

8.39

13.27

+ 58

30.56 5.88 41.38

49.81

+63

6.46

43.36

6.29

+ 7

1.18

5.11

Animal and vegetable crude materials

151.95

120.66

21

116.28

91.54 105.99

+121

87.02

4.52

-

9

13.39

92.60

538.58

556.47

+3

223.60

292.53

+31

115.92

176.60

86

Section 3: Mineral fuels, lubricants

and related materials

Mineral fuels, lubricants and related

materials

194.21

193.05

1

4.85

6.05

+ 25

0.01

6.04

194.21

193.05

1

4.85

6.05

+ 25

0.01

6.04

Section 4: Animal and vegetable oils

and fats

Animal and vegetable oils (not

essential oils), fats, greases and derivatives

54.73

60.38

+10

23.82

16.11

32

2.28

13.83

54.73

60.38

+ 10

23.82

16.11

32

2.28

13.83

·

53.03

57.84

+9

19.14

16.32

15

2.74

13.58

0.63

---

0.61

3

0.02

0.02

+ 17

0.02

48.73

60.32

+24

47.55

51.49

+ 8

16.53

34.96

Section 5: Chemicals

Chemical elements and compounds Mineral tar and crude chemicals

Dyeing, tanning and colouring

materials

87

TABLE 2-Contd.

Imports

Section and Division

1958

1959

± %

1958

Total Exports

1959

+ %

(HK$ million)

Exports

Re-

exports

1959

Section 5: Chemicals- Contd.

Medicinal and pharmaceutical

products

96.73

89.80

7

85.09

67.32

21

13.28

54.04

Perfume materials and cleansing

preparations

40.00

34.64

13

16.21

12.15

25

5.30

6.86

...

Fertilizers, manufactured

35.90

8.08

-

77

34.23

5.93

83

5.93

Explosives and miscellaneous

chemical products

80.87

140.51

+74

31.09

27.98

10

5.04

22.94

355.89

391.80

+ 10

233.32

181.22

22

42.89

138.32

Section 6: Manufactured goods

classified chiefly by materials

Leather, leather manufactures and

dressed furs

22.31

31.45

...

+41

2.85

4.21

+48

1.43

2.78

Rubber manufactures

13.10

13.90

+ 6

5.22

4.80

8

0.89

3.90

Wood and cork manufactures

(excluding furniture)

17.25

25.95

+ 50

7.48

17.12

+129

3.66

13.45

Paper, paperboard and

manufactures thereof

108.32

114.12

+ 5

37.82

28.35

25

6.32

22.03

Textile yarn, fabrics and made-up

articles

732.81

891.76

+ 22

666.42

578.06

13

413.91

164.15

Non-metallic mineral manufactures

93.37

98.34

+ 5

36.46

26.09

28

16.23

9.86

Silver, platinum, gems and jewellery Base metals

109.19

164.48

+51

38.02

60.59

+ 59

24.94

35.65

199.94 205.19

...

Manufactures of metals

+

3

62.62

63.99 + 2

15.35

48.64

63.05

59.19

6

130.01

134.31

+ 3

120.13

14.18

1,359.34 1,604.39

+18

986.91

917.52

7

602.88

314.64

TABLE 2-Contd.

Imports

Section and Division

Total Exports

1958

1959 ±%

1958

1959

+ %

(HK$ million)

Exports

Re-

exports

1959

Section 7: Machinery and transport

equipment

Machinery other than electric

170.81

177.04

+4

39.38

36.01

9

8.48

27.53

Electric machinery, apparatus and

appliances

105.66

151.71

+44

46.59

53.98

+ 16

35.17

18.80

Transport equipment

77.76

...

97.75 + 26

39.84

44.15

+ 11

30.14

14.01

354.23

426.50

+ 20

125.81

134.13

+7

73.80

60.34

Section 8: Miscellaneous manufactured

articles

Prefabricated buildings; plumbing,

heating and lighting fittings

Furniture and fixtures

Travel goods

Clothing

Footwear

...

Scientific and controlling instru-

ments; photographic and optical goods; watches and clocks Miscellaneous manufactured

12.56

12.33

5.92

7.07

3.34

3.21

65.12

66.21

11.87

11.41

[+1 +1

+ 20

4.

...

ANANN

2

53.80

62.69

+ 17

60.91

1.78

34.93

44.23

+27

43.04

1.19

16.37

16.42

15.80

0.61

525.11

810.17

+ 54

793.32

16.85

100.14

111.31

+ 11

109.04

2.27

160.18

138.21

14

41.57

40.95

1

14.38

26.57

articles, n.e.s.

*..

359.93

100.95 117.42

355.87

+16

208.21

294.78

+ 42

262.89

31.89

1

980.14

1,380.54

+41

1,299.38

81.16

88

Section 9: Miscellaneous transactions

and commodities, n.e.s.

Postal packages, not classified

according to kind

Live animals, not for food

Gold and specie

+

Total

19.16 0.80 257.87

277.83

13.77

28

1.12 302,16

317.04

+ 40

+17

12.69 1.21 262.02

11.15

12

11.15

1.07

11

0.27

0.79

317.50

+21

1.19

316.31

+14

275.92 329.72

+19

12.62

317.10

4,851.61 5,251.53 +8

3,250.82 3,595.04

+11

2,283.32

1,311.72

TABLE 3

VALUES OF EXPORTS OF PRODUCTS OF HONG KONG

ORIGIN BY COMMODITIES, 1958 AND 1959

(HK$ million)

Commodity

1958

1959

± %

Clothing

437.0

793.0

...

Outerwear, other than knitted

197.8

337.7

+ 71

Shorts, jeans, trousers, overalls, pinafores Blouses and jumpers, not embroidered Suits, jackets, uniforms and overcoats,

136.7

74.2

men's and boy's ...

Children's outergarments

Underwear and nightwear, other than

28.5

...

27.3

knitted

192.0

...

Shirts

77.8

126.4

Underwear and nightwear, embroidered ...

3.0

2.5

Cotton singlets

Shirts

Underwear and nightwear, knitted ...

Cotton underwear

Gloves and mittens

Clothing, n.e.s.

Brassieres...

Embroidered articles, n.e.s.

Outerwear, knitted

Jackets, jumpers and sweaters

Clothing of impermeable materials Stockings and hose

Headwear

Textiles

62.3

91.6

+1+

31.8

...

39.8

39.1

@ES | | |

62

17

47

**

...

...

52.4

61.8

+

18

43.8

+4

26.0

...

7.7

15.8

35.4

30.9

9.4

13.8

10.8

9.3

[ +

47

14

...

7.8

351.3

413.9

...

...

Cotton piecegoods

230.1

227.1

1

Cotton yarns

90.6

87.5

A

Bed linen, table linen and towels, embroidered

15.9

23.4

Towels, not embroidered

14.7

17.4

Miscellaneous Manufactured Articles

123.0

262.9

Toys and games

65.2

89.5

+

++11

3

47

18

37

Artificial flowers, foliage and fruit

61.0

Articles of basketware or of wickerwork, n.e.s.

11.2

16.7

+ 49

Buttons and studs

15.4

12.6

18

Plastic articles...

11.5

10.3

10

Umbrellas, walking sticks and similar articles

9.9

9.8

1

Vacuum flasks and jugs, complete

7.9

9.3

+

18

Matches

1.8

0.8

56

Manufactures of Metals

75.8

120.1

...

Enamelled household utensils

68.3

70.2

Aluminium household utensils

7.5

10.1

Footwear

97.7

109.0

+++

3

35

12

Metalliferous Ores and Metal Scrap

4.2

87.0

Iron and steel scrap

61.1

Bronze scrap

17.8

Iron ore

4.1

4.7

+ 15

Plumbing, Heating and Lighting Fittings

43.5

60.9

Electric torches

32.2

39.3

Metal lanterns

11.3

12.2

128

++

22

89

TABLE 3-Contd.

Commodity

1958

1959

Furniture and Fixtures

Furniture of vegetable plaiting materials

33.2

43.0

23.1

27.2

Wood furniture and fixtures

10.1

14.6

...

(HK$ million)

+ %

#+++

30

18

45

Electric Machinery, Apparatus and Appliances

16.0

35.2

Torch batteries

11.1

11.4

Torch bulbs

4.9

5.6

++

3

14

Fruits and Vegetables

26.0

33.3

Preserved fruits

15.8

13.3

16

...

Vegetables

Preserved ginger

Transport Equipment

Ships and boats

Sugar and Sugar Preparations

Silver, Platinum, Gems and Jewellery.....

Metal watch bands

Imitation jewellery

Cereals and Cereal Preparations

Dyeing, Tanning and Colouring Materials

Paints, enamels and mastics... Lacquers and varnishes

Non-metallic Mineral Manufactures

Glassware

12.5

10.0

6.1

39

30.1

29.8

26.9

24.9

9.6

...

9.2

...

19.4

14.8

16.5

11.8

11.1

...

2.9

2.8

3

J

7.7

16.2

+110

6.0

...

Cement...

6.8

5.0

26

Pottery...

4.0

1

Glass inners for vacuum flasks

0.9

0.7

22

Travel Goods, Handbags and Similar Articles...

Travel goods

16.4

15.8

4

10.3

8.2

20

Handbags, wallets, purses and similar articles

6.1

7.6

+ 25

Base metals

5.7

15.4

Iron and steel bars

5.7

12.9

+ 126

Animal and Vegetable Crude Materials

0.1

13.4

Rattan cane, core and peel

9.3

Feathers

2.1

Fish and Fish Preparations

1.8

12.3

Fish, salted, dried or smoked

5.1

Crustacea and molluscs, fresh or simply

preserved

4.3

Fish in airtight containers

1.8

2.0

+ 11

Tobacco and Cigarettes

5.3

12.3

Beverages

1.0

1.7

...

Non-alcoholic beverages

0.9

1.1

++

70

22

Others

0.3

118.6

Total

1,260.3

2,282.1

Notes: (1) The figures for 1958 are for those items which in 1958 were classified as 'wholly or principally of Hong Kong Origin', and they are not comparable with the full value figure for exports of the produce and manufactures of Hong Kong classified in 1959, except in the case of items shown above where a percentage movement is given.

(2) The items shown in the 1959 column do not always add up to the sub-totals since only the main

items are given under each subhead.

90

TABLE 4

VOLUME OF EXPORTS OF SELECTED PRODUCTS OF HONG KONG

ORIGIN, 1958 AND 1959

Commodity

% increase

Unit

1958

1959

or

decrease

Fish, fish products and fish

preparations in airtight containers

lb.

834,427

766,271

9

Fruits preserved and fruit preparations

with or without added sugar

lb.

13,555,060

11,914,905

12

Fruit, fruit peel, crystallized, drained

or glace

lb.

4,863

3,467

29

Jams, marmalades, fruit jellies, fruit

pulps and pastes

lb.

343

841

+145

Fruit juices, unfermented, (including

fruit syrup and natural fruit

flavours)

Imp. gall.

24,318

32,743

+ 35

Non-alcoholic beverages and waters

(not including fruit or vegetable

juices)

...

Imp. gall.

186,680

192,115

+

CYS

3

Beer (including ale, stout, porter) and

Cigarettes

Iron ore...

other fermented cereal beverages

Tungsten ore (wolframite)

Imp. gall.

9,096

13,458

+ 48

lb.

1,288,172

1,643,465

+

28

...

cwt.

2,169,846

2,483,040

+ 14

...

cwt.

300

1,279

+326

Seagrass

cwt.

***

1,587

2,572

+ 62

Lacquers and varnishes

lb.

1,230,901

1,222,451

1

Prepared paints, enamels and mastics... Ib.

10,222,543

9,735,876

5

Cotton yarn and thread, grey

lb.

30,305,470

29,463,981

3

Cotton yarn and thread, bleached,

dyed or mercerized

lb.

334,230

59,329

Cotton piecegoods, grey, unbleached... sq. yd.

148,810,855

181,193,860

+

Cotton piecegoods, other than grey,

unbleached

sq, yd.

71,561,801

53,996,175

Towels, not embroidered

Cement

Iron and steel bars and rounds

Torch batteries...

Torch bulbs

doz.

...

1,748,904

1,859,499

+

22 22

cwt.

1,212,628

850,180

30

cwt.

173,558

417,573

doz.

5,263,342

5,404,086

doz.

6,858,925

Electric torches

doz.

...

2,408,559

7,863,421 + 15 2,739,032

Metal lanterns

doz.

...

135,625

188,958

++++

+ 141 3

14

39

Shirts (including sport and tee) other

than knitted...

doz.

...

1,802,186

2,863,043

+

59

Footwear, wholly or mainly of leather Footwear, wholly or chiefly of textile

materials, with rubber soles Footwear, wholly or chiefly of textile materials, with sole of leather or of leather substitutes

doz. pair

152,660

176,070 + 15

doz, pair

1,828,246

1,745,930

5

...

doz. pair

7,686

20,841 +171

Rubber footwear, wholly or mainly of

rubber...

Vacuum flasks and jugs, complete

doz. pair doz.

259,306

466,117 + 80

194,995

237,386 + 22

91

TABLE 5

QUANTITIES AND VALUES OF SELECTED ITEMS OF RE-EXPORT WITH THE CORRESPONDING IMPORT FIGURES, 1959

Commodity

Import

Re-export

Unit of Quantity

Quantity

Value (HK$ million)

Value (HK$

Quantity

million)

Plants, seeds, flowers and parts of plants, n.e.s. mainly for use in medicines or

perfumery ...

Beans, peas, lentils and other legumes (pulses) dry, incl. split (dry pulses used as

food for animals should be classified here)

cwt.

1,582,829

51.19

1,280,094

44.58

cwt.

Diamonds, cut and polished, unset

Antibiotic formulations (aureomycin, penicillin, streptomycin, terramycin, etc.) Coal-tar dyestuffs, other than indigo

268,675

38.70

200,371

41.83

39.78

36.02

cwt.

71,487

42.03

48,985

30.40

carat.

...

234,349

144.45

34.531

28.17

Cotton piecegoods dyed in the piece (except pile fabrics)

+

A

Sheep's and lamb's wool, greasy or back washed

Cotton yarn and thread, grey, over 10s but not over 20s count

Aluminium and aluminium alloys, unwrought

Fabrics of spun rayon yarn

Watches, complete

Plywood, incl. wood faced with veneer sheets

Table linen, embroidered

Cotton piecegoods, white, bleached

Pyrotechnical articles (fireworks)

Soya beans

Woollen fabrics wholly of wool or fine hair

Gunny bags, new or used

Tea, China (and Formosa)

Rattan canes

Joss paper

Oranges, tangerines and mandarines

Pharmaceutical products, n.e.s. (incl. medicated wine and medicinal tea)

Cuttlefish and squids, salted, dried or smoked

Groundnut (peanut) oil

Fabrics of rayon type continuous filament yarn

Edible nuts, fresh or dried, n.e.s. (other than nuts used chiefly for the extraction

of oil)

Cassia

Sulphate of ammonia

Beet sugar and cane sugar, refined

Linen fabrics

Cinematographic films, exposed, whether developed or not

Vegetables, preserved or prepared (except frozen, dehydrated or in brine) not in

airtight containers, n.e.s.

Carpets, carpeting, floor rugs, mats and matting of vegetable plaiting materials

(incl. coconut matting), n.e.s. not for the use in packing

Paper and paperboard, n.e.s.

thousand sq. yd.

33,202

57.56

26,855

26.65

thousand lb.

7,405

25.29

7,346

25.30

thousand lb.

...

33,645

60.63

8,338

15.54

cwt.

201,627

27.55

100,217

14.40

thousand sq. yd.

55,012

52.51

18,369

14.18

No.

1,915,572

81.24

313,908

12.39

thousand sq.

ft.

55,459

16.06

43,239

11.86

doz.

804,871

43.59

213,748

10.53

thousand sq. yd.

82,678

104.91

8,034

9.51

11.25

9.39

cwt.

591,609

18.10

279,324

9.30

thousand sq. yd.

4,962

49.03

616

8.98

thousand

4,911

6.15

7,760

8.98

+

thousand Ib.

+

9,347

18.65

3.559

8.91

cwt.

---

368,609

15.07

126,537

8.43

10.38

8.27

cwt.

639,743

32.12

163,957

8.13

27.53

7.86

cwt.

107,414

10.85

64,119

6.87

cwt.

190,670

18.36

62,988

6.56

thousand sq. yd.

25,438

34.50

6,343

6.50

cwt.

197,858

13.65

75,506

6.31

cwt.

27.461

5.28

31,240

6.15

cwt.

557,784

6.44

528,425

5.90

cwt.

721.960

23.92

156,669

5.78

thousand sq. yd.

2,544

8.98

1,672

5.36

thousand ft.

+

23,904

6.99

11,808

5.28

cwt.

177,235

7.19

96,505

5.27

thousand sq. ft.

33,562

4.76

30,413

5.26

thousand lb.

15,443

11.09

6,430

5.25

92

TABLE 5-Contd.

Import

Re-export

Commodity

Unit of Quantity

Quantity million)

Value (HK$}

Quantity million)

Value (HK$

Printed cotton piecegoods (except yarn dyed)

Fish (incl. fish in pieces or filleted) salted, dried or smoked, n.e.s.

Jackets, jumpers, sweaters, cardigans and pullovers, knit or made of knitted fabrics doz. Gourmet powder (monosodium glutamate) Fabrics wholly of silk (except brocades) Sesamumseed

Fruits preserved and fruit preparations, n.e.s. whole or in pieces, with or without

added sugar

Cotton yarn and thread, grey, over 32s but not over 42s count Aircraft engines, reciprocating

Fresh or chilled vegetables chiefly for food, n.e.s. (incl. carrots, lotus roots,

arrowhead, etc. and vegetables in temporary preservative solution) Iron and steel bars and rounds

Cigarettes

Feathers (except ornamental feather and downs)

Radio receiving sets for domestic mains ...

Bamboo canes

Raw cotton, other than linters

Dried tree fruits (prunes, peaches, apricots, apples, etc.)

Prawns and shrimps, fresh, chilled or frozen

Pine resin

Inorganic compounds and chemicals, n.e.s. (incl. compressed gases, oxygen,

hydrogen, etc.)

Cotton yarn and thread, grey, over 20s but not over 32s count

Tung oil (wood oil)

Ginseng

Eggs in the shell, fresh

Animal products, crude, used in medicine and perfumery

Iron and steel tubes, pipes and fittings, welded or drawn 6" N.B. and under Spices, whether unground, ground or otherwise prepared, n.e.s. (incl. coriander

seeds, vanilla, fennel seeds, etc.)

cwt.

263,336

13.53

59,419

5.22

103,653

15.06

34,992

5.09

thousand lb.

3,102

15.44

913

4.75

thousand sq. yd.

8,216

32.86

1,412

4.66

cwt.

81,219

4.62

69,585

4.65

thousand lb.

...

19,206

12.58

5,266

4.58

thousand lb.

5,483

17.62

1,370

4.49

No.

17

1.06

178

4.47

cwt.

1,646,569

20.27

121,554

4.43

cwt.

935,684

27.03

147,611

4.28

thousand lb.

T

4,943

52.35

562

4.26

thousand lb.

1,822

5.60

1,236

4.24

No.

188,018

26.74

40,930

4.19

cwt.

122,942

4.25

106,703

4.15

thousand sq. yd.

46,732

58.31

3,914

4.12

cwt.

1,456,827

207.43

28,812

4.09

thousand lb.

11,719

8.85

4,423

4.06

---

thousand lb.

10,453

12.70

2,013

3.98

cwt.

98,168

4.78

78,949

3.82

12.89

3.80

thousand lb.

26,387

52.74

1,648

3.79

cwt.

53,762

5.16

41,246

3.77

thousand lb.

254

17.28

53

3.69

Gross thousand lb. cwt.

2,666,862

58.98

197,368

3.67

39

4.26

16

3.55

thousand lb.

179,714

6,920

9.64

56,641

3.50

4.99

5,268

3.42

Table and other household (incl. hotel and restaurant) and art articles of

chinaware or porcelain

...

11.59

3.40

Joss sticks (incl. joss stick powder)

cwt.

116,019

4.53

51,212

3.40

Vitamins and vitamin preparations

7.55

3.33

Minerals, crude, non-metalliferous, n.e.s.

cwt.

315,695

3.52

242,137

3.32

Flour and flakes of potatoes, fruits and vegetables, n.e.s. (incl. sago, topioca

and all other starches prepared for use as food)

cwt.

313,956

7.27

94,519

3.20

Rice, white (100% and whole rice)

cwt.

4,723,514

172,65

104,997

3.15

Vegetable textile fibres, n.e.s. and waste of such fibres

cwt.

3,863

1.63

3,499

3.12

Wool tops

Books and pamphlets, printed

Pharmaceutical products of Chinese type (incl. medicated wine and medicinal tea)...

thousand lb.

3,481

21.20

476

3.04

7.24

3.01

6.32 |

3.01

93

TABLE 6

END-USE ANALYSIS OF IMPORTS, 1959

Food

Bovine cattle

Swine

Milk, cheese and eggs... Fish & fish preparations Wheat and spelt

Rice

Fruits

...

Vegetables Sugar

...

Tea and coffee...

...

Soya bean oil, peanut oil, butter & lard Other

Imports

Re-exports

Retained Food

Fuels

Liquid fuel

Solid fuel

Imports

+

--

Re-exports

:

:

Retained Fuels

Consumer Goods

Alcoholic beverages

...

A

..

A

:

Value in HK$ million

Percentage of

total imports

62.81

1.3

138.11

2.8

98.79

2.0

101.48

2.1

27.96

0.6

239.27

4.8

...

114.83

2.3

133.54

2.7

49.11

1.0

28.61

0.6

+

63.83

1.3

268.61

5.4

1,326.95

26.8

214.62

1,112.33

22.5

176.02

3.6

39.91

0.8

215.93

4.4

7.58

208.35

4.2

27.96

0.6

...

...

Tobacco and tobacco manufactures...

Medicinal & pharmaceutical products

Made-up articles of textile materials other than clothing Diamonds

79.76

1.6

89.80

1.8

*

58.86

1.2

144.45

2.9

Radio, television, gramophones & records, tape recorders,

refrigerators & washing machines...

62.82

1.3

Passenger motor cars

33.54

.

...

0.7

Clothing

66.21

1.3

...

Watches

81.24

1.6

Other

333.79

6.7

*

...

Imports Re-exports

Retained Consumer Goods

978.43

19.8

...

...

255.26

+

...

723.17

14.6

94

TABLE 6-Contd.

Raw Materials

Raw cotton

Inedible animal & vegetable crude materials Dyeing, tanning & colouring materials

Plastic moulding materials

...

Cotton yarn & thread, grey, of all counts

***

Cotton sheeting, shirting and piecegoods of all kinds Woollen fabrics & mixtures

Fabrics of rayon, nylon, terylene, dacron or orlon yarn Building & construction materials excluding glass.....

Iron & steel

Other base metals

...

Other

Imports

Re-exports

Retained Raw Materials...

:

+

Value in HK$ million

Percentage of total imports

...

207.43

4.2

101.77

2.1

60.32

1.2

86.02

1.7

148.85

3.0

304.01

6.1

...

84.96

1.7

...

109.27

2.2

60.69

1.2

139.34

2.8

65.85

1.3

761.17

15.4

2,129.68

43.0

472.91

1,656.77

33.5

Capital Goods

Office machinery & equipment

Mining, construction & industrial machinery (excluding

textile machinery)

...

...

Textile machinery

Electric machinery

Radio & telegraphy

motor cars)

Road motor vehicles & parts (other than passenger

Aircraft parts ...

Scientific, medical, optical, measuring & controlling

instruments & apparatus

Other

J

Imports

Re-exports

Retained Capital Goods...

Total imports

...

Total re-exports

Total Retained Imports...

95

10.27

0.2

102.21

2.1

49.71

1.0

43.28

0.9

22.24

0.4

17.38

0.4

12.84

0.3

+

11.16

0.2

29.24

0.6

***

298.33

6.0

+

45.04

253.29

5.1

4,949.37

100

...

995.41

...

3,953.96

79.9

96

TABLE 7

ORGANIZATION OF THE COMMERCE AND INDUSTRY DEPARTMENT

DIRECTOR OF COMMERCE AND INDUSTRY

DEPUTY DIRECTOR

ADMINISTRATION DIVISION

CONTROLS DIVISION

DEVELOPMENT DIVISION

-Accounts and Administration

Branch

Accounts and Stores Section Administration Section

Statistical Branch

Trade Statistics Section

Other Statistics Section

Overseas Offices

London Office Tokyo Office

Sydney Office

Trade Licensing Branch

Certification Branch

Import Licensing Section

Export Licensing Section Cotton Textiles Licensing

Section

-Dutiable Commodities Branch

Licensing and Permit Section

-Supplies Branch

-Preventive Service

Headquarters Section Excise Section Training Section

Marine Section

Land Section

New Territories Section

Special (Narcotics) Section

Certification Section

Commonwealth Preference

Section

Industry Inspection Section of

the Preventive Service

Industry Branch

Industrial Statistics Section

Export Promotion Branch

Trade Publications Section Trade Enquiries Section

-Overseas Trade Relations Branch

Trade Agreements Section Market Research Section

97

Type of Certificates

TABLE 8

CERTIFICATION OF HONG KONG PRODUCTS

Commonwealth Preference Certificates

...

Standard Certificates of Origin

Comprehensive Certificates of Origin

Commercial

Tourist

Gift

Sample

1958/59

1959/60

Factories registered

Certificates issued

Value of Goods

on 31.3.59

Factories registered on 31.3.60

Certificates issued

Value of Goods

Mail Order (New certificate introduced

on 4.12.59)

58,663

$127,068,963

51,875

$147,470,984

3,612

103,031

482,109,359

3,858

125,484

666,147,939

32,115

30,911

30,313

48,107

12,205

268,233,794

15,432

548,251,093

2,146

6,371

875

238,473

877,412,116

279,055

1,361,870,016

TABLE 9

NET REVENUE COLLECTED FROM ALL SOURCES

Approved

Actual Revenue

Estimates

1959/60

1959/60

1958/59

$

$

$

Duties:

Hydrocarbon oils imported

30,000,000 32,018,548 28,621,221

Intoxicating liquor imported

·

16,000,000

17,494,724

16,044,963

Liquor other than intoxicating liquor

imported

Tobacco imported

600,000 49,000,000

717,444

597,161

54,568,614

46,670,892

Liquor locally manufactured

12,000,000

12,940,220

11,340,311

Table waters

2,800,000

3,132,008

2,768,696

tions

Proprietary medicines and toilet prepara-

Internal Revenue:

3,738

5,335,062

Stamp duties

-

750,000

828,622

740,235

Fines, Forfeitures and Licences:

Fines

Forfeitures

Hydrocarbon oils

25

10

---

1,000,000 40,000

1,831,717

1,312,659

44,376

40,370

Liquor

1,000,000

1,323,794

1,110,519

Tobacco

+

380,000

447,575

406,569

Miscellaneous (table waters)

8,000

8,821

8,548

Proprietary medicines and toilet prepara-

tions

2,593

116,307

Fees of court or office:

Denaturing

350,000

322,507

337,324

Factory inspection and supervision Official certificates*

*

200,000

225,894

188,102

15,000

11,525

12,406

Official signatures

685

Departmental services and supervision

34

6

Overpayments in previous years

836

+

+++

6,941

Anti-narcotic smuggling guards

13,000

15,351

11,440

Bonded warehouse supervision

Loss of, or damage to Government property. Officials and others for light, fuel, etc. in

Government buildings

28,800

46,449

24,744

144.

29

144

113

Advertisement revenue

150,000

227,418

177,276

Publications

1,000

Miscellaneous

Total

1,199 68,238

1,443

73,825

114,335,800 126,283,243 | 115,947,172

* 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 $2,102,160.

98

Type

Liquor:

Whisky

Brandy Gin

Wines

...

Beer

TABLE 10

DUTY FROM DUTIABLE COMMODITIES (GROSS)

Unit

1958/59

1959/60

Quantity Duty Quantity Duty

Other European type

Chinese type:

(a) Locally Distilled

(b) Imported Spirituous liquor other

than intoxicating liquor Methyl alcohol

Tobacco :

Total...

Cigarettes and Cigars European Smoking To-

bacco (including snuff) Chinese prepared Tobacco Tobacco leaf

$

$

gallons

**

63,968 3,404,662 71,016 4,293,668

68,022 3,621,630

95

24,838

1,368,031

84,311 27,518 1,518,339

5,096,574

54,504

1,247,711

วง

71,458

1,646,817

>>

3,003,706

4,649,358

3,282,318

4,987,220

9,450

532,778

11,601

658,755

1,477,215

77

9,140,107

1,650,815

10,343,434

15

338,370

2,858,903

315,431

2,748,582

61,238

646,613

67,357

761,246

608

10,111

4.62

9,277

5,104,913 28,151,942

5,579,293 | 31,391,874

lbs.

3,765,317 | 21,732,174

4,423,485 | 26,763,944

44,055

75

185,215

40,124

171,925

7,792

23,377

18,940

59,816

Total...

Hydrocarbon Oils:

Light Oils

27

*

8,168,472 | 29,943,570 10,120,394 38,839,817

11,985,636 51,884,336 14,602,943 65,835,502

Imp. gals. 16,541,355 13,233,054 18,293,731 14,773,776

Diesel Oils

tons

Furnace Oils

69,194 3,161,006 425,994 10,223,817

78,392

3,647,528

462,307

11,095,340

Other type

Imp. gals. 20,918,555

2,192,016 26,441,983

2,795,398

Total...

28,809,893

32,312,042

Toilet Preparations

Proprietary Medicines

3,186,998

1,940

2,159,608

1,798

Table Waters

gallons

5,768,118

2,768,697 6,525,519

3,132,250

Total...

5,768,118

8,115,303 6,525,519

3,135,988

Refund and Drawback

Intoxicating liquor

Spirituous liquor other than

intoxicating liquor

Toilet Preparations and

Proprietary Medicines Table Waters

Tobacco

***

Hydrocarbon Oils ...

Total...

135,379

194,405

...

34,127

45,081

11,545

1

242

...

5,213,444 188,672

5,583,168

11,266,888

293,494

11,800,110

99

TABLE 11

REVENUE FROM DUTIABLE COMMODITIES LICENCES, 1959/60

Importer's:

Liquors

Tobacco

Hydrocarbon oils

Table waters

...

Methyl alcohol

T.P. & P.M.

Dealer's:

European-type liquor

Chinese-type liquor

Spirituous liquor Tobacco

Hydrocarbon oils Methyl alcohol

T.P. & P.M.

Retailer's:

Chinese-type liquor Spirituous liquor Tobacco

Hydrocarbon oils Methyl alcohol

T.P. & P.M. ...

Manufacturer's:

Liquor (Distillers 23)

Tobacco

(Brewer

1)

Table waters

T.P. & P.M.

Warehouse:

Liquor Tobacco

Hydrocarbon oils

Methyl alcohol

Table waters

T.P. & P.M.

...

No. of Licences Issued

Revenue

$

601

90,000.00

110

16,500.00

223

33,450.00

19

1,900.00

24

240.00

61

2,260.00

344

516,000.00

1,115

561,800.00

757

22,710.00

233

+

69,900.00

408

4,080.00

25

250.00

93

930.00

131

20,000.00

2,744

101,572.75

7.894

347,520.00

118

1,180.00

10

---

154

100.00 4,860.00

Ship and Harbour vessel Licences

Licence fees for persons importing for own use & Misc.

Total

Refunds:

Liquor licence fee

10

...

...

T.P. & P.M. licence fees

24

3,325.00

6

1,800.00

25

5,025.00

63

9,450.00

7

4,200.00

5

2,700.00

10

3,500.00

11

110.00

14

140.00

63

630.00

433

1,324.00

15,812.82

$1,843,269.57

161.55 15,950.00

Total:

$

16,111.55

$1,827,158.02

100

Net Total:

MARINE DEPARTMENT LIBRAR

TABLE 12

CONFISCATIONS UNDER THE DUTIABLE COMMODITIES

AND DANGEROUS DRUGS ORDINANCES

Commodity

1958/59

1959/60

Unit

Quantity

Quantity

Tobacco :

Chinese prepared tobacco

lb.

61,640

65,051

Foreign cigarettes

lb.

1,147

1,983

Macau and Chinese cigarettes

lb.

6,376

2,614

Tobacco stems

lb.

13,560

18

Cigars

lb.

128

157

Cut tobacco

lb.

.12

Tobacco leaf

lb.

38

254

Liquor:

European type liquor

Chinese type liquor

Alcohol

gal.

683

850

gal.

4,311

2,502

gal.

21

68

Fermented material

...

gal.

28,235

14,599

Illicit stills

Nos.

721

404

Beer

gal.

38

266

Adulterated liquor

gal.

18

2.5

Proprietary medicines & Toilet Preparations:

Miscellaneous toilet preparations

pkt.

3,588

106

Chinese medicines

pkt.

9,060

502

Table Waters:

Aerated water ...

gal.

2

Dangerous Drugs:

Raw opium

*

lb.

1,472

702.7

Prepared opium

lb.

59

12.7

Diacetylmorphine Hydrochloride

gm.

1,199

6,673

Heroin pills

gm.

1,730

78

Morphine Hydrochloride

gm.

1,231

66,885

Morphine

gin.

9,652

4,001

Opium dross

lb.

.39

7.0

Barbitone

gm.

131

70,979

Crude morphine

Diacetyl Morphine

Acetylmorphine Hydrochloride mixture

Poppy Husks

+

gm.

1,821

5,826

...

gm.

1,075

gm.

2,792

lb.

7,119

Opium water

A. oz.

175.5

101

TABLE 13

MAJOR CONFISCATIONS UNDER OTHER LEGISLATION

Legislation

1959/60

Commodity

Unit

Quantity

Importation & Exportation Ordinance & Regulations thereunder

Radio valves

Photocells

Gold

No.

7

No.

2

taels

1,149.95

Watches

No.

2,727

Diamonds

No.

299

Silver tableware

pieces

17

Glassware

pieces

14

Film

boxes

2

Spectacle frames

No.

100

Merchandise Marks Ordinance

Penicillin Ordinance

Printing block

No.

372

Dies

No.

2

Wrappers

pkt.

10

Paper books

No.

997

Printed sheets of music

No.

79

Soap

tabs.

618

Soap slabs

pkge.

212

Penicillin substances

pkts.

380

Agricultural Poisons Regulations

Diethylparanitrop-nehylthio- bots.

phosphate

102

590

Directorate

Development Division

TABLE 14

DISTRIBUTION OF STAFF

31.3.60

31.3.59

8

8

6

6

Overseas Trade Relations Branch

Export Promotion Branch

Industry and Certification Branches

Certification Branch ...

Certification Section

...

Commonwealth Preference Section

5

20

5

1

I

15

15

11

11

2

2

2

2

45

40

5

5

***

Industry Inspection Section, Preventive Service

51

38

Industry Branch

4

109

87

...

Controls Division

Trade Licensing Branch

Supplies Branch

Dutiable Commodities Branch

Licensing and Permit Section

Excise Section, Preventive Service

Preventive Service

Headquarters Section

Marine Section

Land Section ...

New Territories Section

Special (Narcotics) Section

Administration Division

...

:

28

28

32

32

4.0

40

52

52

1

1

25

28

38

64

38

67

...

4

4

58

60

54.

59

74

71

39

36

179

408

176

406

22

Overseas Offices

London Office

Sydney Office

Tokyo Office

PHI

Statistical Branch

Accounts and Administration Branch

Accounts and Stores Section

Administration Section

Leave Reserve

Total

:.

:

103

7

+

4

7

8

19

Co

8

15

63

63

59

59

2

ลง

2

17

13

21

34

12

52

49

811

785

I

n

#

*

=

*

!

**

M

**

Pa

P

HONG KONG

*

Code No.: 3026-60


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