工商業管理處年報 Commerce and Industry Department Annaul Report 1962-1963





:

HONG

ANNUAL

Library Book No.351.06

DEPARTMENTAL

 

REPORTS

KONG

1962-63

i

1116

11116

94

DIRECTOR OF

COMMERCE AND INDUSTRY

Library Book No.351.06

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF COMMERCE AND INDUSTRY

D. R. HOLMES, C.B.E., M.C., E.D.

FOR THE

FINANCIAL YEAR 1962 - 63

PRINTED AND PUBLISHED BY S. YOUNG, GOVERNMENT PRINTER

AT THE GOVERNMENT PRESS, JAVA ROAD, HONG KONG

1116

Chapter

CONTENTS

Paragraphs

I. THE COLONY'S TRADE IN 1962

General

Exports

Re-exports

Imports

Principal Trading Partners

1 - 2

3 - 8

9 11

-

12 - 15

16 - 27

II. GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES

General-Organization

Trade Agreements and Market Research Branch

Trade Development Branch

Industrial Development Branch

Statistical Branch

28 - 30

31

32 - 33

34 - 37

38 - 40

Overseas Offices

Certification Branch

-

41 45

46 - 48

Textiles Branch

49 - 50

Trade Licensing and Supplies Branch

51 - 53

.

Dutiable Commodities Branch

54 - 56

Kowloon Office.

57 - 59

The Preventive Service

60 - 62

Accounts and Administration Branch

63

Legislation

64 - 65

Trade and Industry Advisory Board .

66 - 70

Cotton Advisory Board

71 - 77

Public Relations

78

iii

Chapter

III. TRADE AGREEMENTS AND MARKET RESEARCH

Paragraphs

BRANCH

General

79

U.N. Economic Commission for Asia and the

Far East

80

General Agreement on Tariffs and Trade

The European Economic Community and The

European Free Trade Association

Obstacles to Free Trade

81 - 83

84

86

87

Canada

88

France

89 - 90

Commonwealth of Australia

91

Federation of Rhodesia and Nyasaland

92

Ghana

93

Singapore

94

Iraq

95

96

97

Official Exchange

Commercial Complaints

IV. TRADE DevelopmenT BRANCH

Overseas Activities

Trade Promotion by Hong Kong

Nigerial International Trade Fair Ideal Home Exhibition

·

888

99 - 100

101 - 104

105 - 107

Trade Fairs and Missions in 1963-64

108

-

111

Middle East Trade Mission

Visiting Trade Missions

Local Exhibitions

Display Centre of Hong Kong Products .

The 20th Exhibition of Hong Kong Products Italia Produce Exhibition

iv

112 - 117

118 - 122

123

124

Chapter

IV. TRADE DEVELOPMENT BRANCH--Contd.

Miscellaneous

Inquiries and Complaints

Export Credit Guarantees

V. INDUSTRIAL DEVELOPMENT BRANCH

Textile Spinning

Textile Weaving

Textile Finishing

Cotton Knitting

+

1

Paragraphs

125 - 126

127

-

. 128 129 130 - 131

132

133 - 134

135

136

137 - 139

140 142

-

Woollen Knitting

Wearing Apparel

Plastics

Light Metal Products

Transistor Radios

Manufacture of Machinery

Shipbuilding

Shipbreaking and Steel Rolling Mills

Diversification and New Products

Land for Industry

Kwun Tong

Tsuen Wan Kwai Chung

Other Areas

Industrial Surveys

Industrial Production Statistics

Productivity

·

143 144

145

146

-

147 - 149

150

151

152

153

154

155 - 156

157

158 - 159

VI. TRADE PUBLICATIONS SECTION

General

160

Commerce, Industry and Finance Directory

161 164

·

Hong Kong Trade Bulletin

165 - 169

Other Publications

170 - 172

Departmental Library

V

173 175

Chapter

VII. STATISTICAL BRANCH

General

Paragraphs

176 - 178

Trade Statistics.

179 182

Statistics of Trade by Parcel Post

183 - 186

Mechanization

187 - 190

Retail Price Index

191 - 192

Assistance to Other Departments

193 - 194

Budgetary Survey

195 - 196

National Income Survey

197

VIII. OVERSEA OFFICES

The London Office

General

198 - 200

Staff

201 - 202

Trade Relations

203 - 210

Office Accommodation

211 - 215

Trade Promotion

216 - 227

Visitors

228 - 229

Trade Fairs and Exhibitions

230

232

Hong Kong House

233

Public Relations

234 - 250

Other Office Activities

251 252

The Sydney Office

General

253

·

Trade Inquiries, Commercial Introductions,

Etc.

254

Publications and Public Relations

255

General Inquiries

Staff

256

257

vi

Chapter

IX. CERTIFICATION BRANCH

Paragraphs

General

Registration of Factories

Certificates Issued, Inspections.

Changes in Certification Requirements of

Various Territories

Standard Certificates of Origin

258

259

260 - 263

264 265

266

Commonwealth Preference Certificates

267 - 269

Comprehensive Certificates of Origin

270 - 273

Enforcement

+

Miscellaneous Certificates

Kowloon Inspection Control Office

X. TEXTILES BRANCH

The G.A.T.T. Short-Term Arrangement Regard-

ing International Trade in Cotton Textiles . 279 - 280

The G.A.T.T. Long-Term Arrangement Regard- ing International Trade in Cotton Textiles

274 - 275

276

277

278

281 - 283

+

Export of Cotton Manufactures to Britain.

284 - 286

Export of Cotton Manufactures to the United

States of America

287 - 290

Export of Cotton Manufactures to Canada.

291 - 292

Export of Cotton Textiles to the Federal

Republic of Germany

293 - 294

Export of Cotton Manufactures to Norway

295 - 297

United States Cotton Agreement with Indonesia 298

XI. TRADE LICENSING AND SUPPLIES BRANCH

General

299

Import Licensing

300 - 302

Export Licensing

303 - 304

vii

Chapter

XI. TRADE LICENSING AND SUPPLIES BRANCH-Contd.

Reserved Commodities

Paragraphs

305 - 307

Rice

Frozen Meat

Coal

Firewood

Foodstuffs

Accounts

XII. DUTIABLE COMMODITIES BRANCH

General

Revenue from Duties.

Revenue from Licences

XIII. PREVENTIVE SERVICE

General

Organization

Training

Staff and Discipline

Searches

308 - 311

312 - 313

314 315

316

317

-

318 - 322

323 - 324

325 326

327 - 328

329

-

330 334

335 - 337

338 - 340

Dutiable Commodities

341 - 342

Narcotics

343 - 346

Certificates of Origin .

347

Merchandise Marks Ordinance

348

Bullion

349

Emergency (Agricultural Poisons) Regulations

350

Court Actions

351

XIV. LEGISLATION

General

Importation and Exportation Ordinance

(Cap. 50)

vili

352 - 353

354

Chapter

XIV. LEGISLATION—Contd.

Immigration (Control and Offences) Ordinance,

1958

Stamp Ordinance (Cap. 117)

Registration (Imports and Exports) Regulations

(Cap. 51)

Dutiable Commodities Ordinance (Cap. 109)

XV. ACCOUNTS AND ADMINISTRATION BRANCH

Paragraphs

355

356 - 357

358

359

General

Office Accommodation

Building Programme

360 - 361

362 - 361

364

Staff

Retrenchment

365

Recruitment and Training

366 - 375

Staff Changes

376 - 396

Accounts and Stores

Revenue

397

Forfeitures

398

Expenditure

399

Stores

400 - 403

Welfare

404 - 405

Housing of Local Officers

406 - 407

Departmental Quarters

408 - 410

Leave

411 - 412

Revenue Inspectors' Mess

413

Canteen

414

Sports and Recreation

-

415 417

ix

I. THE COLONY'S TRADE IN 1962

GENERAL

1. The total value of the Colony's trade in 1962 increased by nearly 12% over that for 1961 and represented the highest annual total ever recorded. Imports and domestic exports rose considerably in value, while by comparison re-exports recorded only a moderate increase. Cargo tonnages by all means of transport were 9.5 million tons compared with 8.4 million tons in 1961.

2. The following table summarizes the Colony's merchandise trade in 1961 and 1962:

Exports Re-exports

Imports

1961 $ million

2,939.03

1962 $ million

3,317.41

991.01 5,970.40

1,069.92

6,657.24

EXPORTS

3. The Colony's exports of domestic produce and manufactures reached a record level of $3,317.41 million, which represented an increase of $378.37 million or 13% over the value for 1961. The 1962 total accounted for 75.61% by value of the Colony's total exports for the year. The corresponding percentages for 1960 and 1961 were 72.8 and 74.78 respectively.

4. The principal item of local manufacture exported was clothing which accounted for 35% of the total by value. Other items of import- ance were textile yarns, fabrics, and made-up articles, 18%; miscel- laneous manufactured articles n.e.s. (mainly artificial flowers and plastic toys and dolls), 16%; manufactures of metal (mainly household utensils), 4%; and footwear, 4%.

5. The United States remained the best customer for Hong Kong products increasing its purchases by $199.73 million over the 1961 figure to reach $878.64 million, or 26% of total exports of domestic produce. The United Kingdom took exports to the value of $714.43 million or 22% of the total and recorded an increase in purchases of $125.24 million over 1961. The other principal markets for Hong Kong's

1

domestic exports were Malaya, $261.86 million, a slight decrease compared with 1961; and the German Federal Republic, $151.15 million, an increase of 43%. Both Australia and Canada increased their purchases in 1962.

6. The principal markets for the Colony's products in 1962 with the value taken by each and the percentage that value bears to the total value of all exports of the Colony's products are shown below:

Percentage of exports

Country

$ million

United States

878.64

26.5

United Kingdom

714.43

21.5

Malaya

261.86

7.9

German Federal Republic (Western)

151.15

4.6

Canada

90.83

2.7

Australia

85.93

2.6

Japan

76.70

2.3

Thailand

73.56

2.2

56.93

1.7

53.71

1.6

Indonesia

North Borneo

7. The British Commonwealth took 46% by value of the Colony's exports in 1962, America took 29%, Asia 12%, Europe 10%, and Africa 2%. The changes compared with 1961 are a rise of 4 points and of 2 points in the percentage going to America and Europe respectively and a fall of 5 points in the percentage going to Asia.

8. The direction of exports of Hong Kong produce and manufac- tures in 1961 and 1962 and the breakdown of these by commodity divisions are shown in Tables 1 and 2, while a more detailed analysis of this trade is given in Tables 3 and 4.

RE-EXPORTS

9. The value of the Colony's re-export trade in 1962 amounted to $1,069.92 million, a rise of $78.91 million or 8% compared with 1961. Hong Kong's three principal customers, as in 1961, were Malaya, $188.91 million; Japan, $143.36 million; and China, $76.92 million; representing an increase of $20.07 million in re-exports to Japan, and $3.67 million to Malaya, but a fall of $14.35 million to China. Increases were also recorded in the value of re-exports to Indonesia, Australia and South Korea. Re-exports represented 24.39% by value of the Colony's total exports in 1962.

2

10. The principal commodities entering into the re-export trade in 1962 were:-textile yarn, fabrics and made-up articles, $117.65 million; silver, platinum, gems and jewellery, $98.28 million; inedible animal and vegetable crude materials, $83.89 million; fruits and vegetables, $80.00 million; medicinal and pharmaceutical products, $62.63 million; cereals and cereal preparations, $60.75 million; and scientific and controlling instruments, photographic and optical goods, watches and clocks, $46.13 million.

11. Further details of the Colony's re-export trade in 1961 and 1962 by countries and by commodity divisions are given in Tables 1 and 2. Table 5 shows the quantities and values of the most important com- modity items entering the re-export trade in 1961 and 1962, with corresponding figures for the imports of the same items.

IMPORTS

12. Imports were valued at $6,657.24 million, which is 12% higher than in the previous year and is a record total. The principal imports were again materials for further processing, and foodstuffs, followed by inedible crude materials, and machinery and transport equipment. China continued to be the principal supplier and recorded an increase in her sales to the Colony over the previous year, the total being $1,213.17 million in 1962 as against $1,028.32 million in 1961. Next in value were imports from Japan, the United States and the United Kingdom. The largest increase in imports came from Japan ($232.87 million), China ($184.86 million), the United States ($62.89 million), Thailand ($46.56 million) and Australia ($44.62 million); imports from Belgium and South Vietnam recorded decreases.

13. On the commodity list increases were recorded for imports of cereals and cereal preparations with a total value of $463.27 million ($360.23 million); textile yarns, fabrics and made-up articles, $966.22 million ($866.64 million); silver, platinum, gems and jewellery, $304.70 million ($255.42 million); and live animals, chiefly for food, $260.05 million ($214.22 million). The figures in brackets denote the 1961 totals.

14. The most important sources of imports in 1962, with the value of goods supplied by each country and the percentage of total imports are listed below:

3

Country

$ million

Percentage

of imports

China

1,213.17

18.2

Japan

1,097.26

16.5

U.S.A.

792.37

11.9

United Kingdom

759.61

11.4

Thailand

302.62

4.5

Australia

195.86

2.9

German Federal Republic

190.44

2.9

Malaya

Switzerland

15. A complete breakdown of imports by countries and by com- modity divisions for 1961 and 1962 is given in Tables 1 and 2; Table 6 shows an analysis of imports by end-use in 1960, 1961 and 1962.

169.43

2.5

142.66

2.1

PRINCIPAL TRADING PARTNERS

16. The following table shows the Colony's trade with its principal trading partners in 1962 with the corresponding figures for 1961 in brackets:

Country

U.S.A.

U.K.

Japan

China

Malaya

United States

Imports $ million 792.37 ( 729.49)

759,61 (757.24) 1,097.26 ( 864.39) 1,213.17 (1,028.32) 142.66 ( 139.86)

Exports $ million

878.64 (678.91) 714.43 (589.20)

Re-exports $ million 28.89 ( 22.13) 22.91 ( 18.48)

76.70 (106.51) 8.47 ( 7.87) 261.86 (266.96)

143.36 (123.28)

76.92 (91.27)

188.91 (185.24)

17. The United States remained the largest market for exports of Hong Kong products in 1962, taking 26.5% of the value of all domestic exports. The total value at $878.64 million was greater by $199.73 million than in 1961. Exports of clothing, the major item, were worth $348.88 million, a rise of $95.42 million or 38% from the 1961 figure of $253.46 million. Miscellaneous manufactured articles (mainly artificial plastic flowers and plastic toys and dolls) were valued at $251.51 million, an increase of $44.37 million over 1961, and exports of electric machinery, apparatus and appliances and of footwear rose by $16.89 million and $15.04 million respectively. Exports of textile yarn, fabrics and made-up articles at $98.90 million recorded only a slight increase of $1.84 million; sales of furniture and fixtures, valued at $22.98 million, also increased only slightly, by $1.15 million.

4

18. The value of imports from the United States increased by $62.89 million from the 1961 total of $729.49 million to a new peak of $792.37 million in 1962. Increases were recorded in the value of imports of machinery other than electric, valued at $74.26 million in 1962, in transport equipment (total $33.09 million), in fruits and vegetables (total $62.52 million) and in tobacco and tobacco manufactures, (total $70.56 million). Decreases were recorded in the value of textile fibres and waste, and of medicinal and pharmaceutical products.

United Kingdom

19. The United Kingdom was the second largest purchaser of Hong Kong products in 1962, taking exports to the value of $714.43 million, an increase of $125.24 million over the figure for 1961 and representing 22% by value of all domestic exports. Compared with 1961, increases were recorded in the value of the main items of export to the United Kingdom-exports of clothing rose in value from $194.87 million to $281.56 million, and of textile yarn, fabrics and made-up articles from $198.63 million to $225.51 million. Small increases were recorded in the value of exports of miscellaneous manufactured articles and electric machinery, apparatus and appliances, while exports of footwear record- ed a slight decrease.

20. The United Kingdom moved to fourth place on the list of suppliers in 1962, sending goods to the value of $759.61 million, a small increase of $2.37 million over the value in 1961. A comparison of the main lines of imports with 1961 shows an increase in the value of electric machinery, apparatus and appliances at $105.46 million, and of transport equipment at $90.01 million; and a fall in the value of textile yarn, fabrics and made-up articles at $90.16 million, of machinery other than electric at $84.74 million, and of base metals at $65.80 million.

China

21. China remained the principal source of supply of the Colony's imports and in 1962 supplied goods to the value of $1,213.17 million which was an increase of $184.85 million or 12% compared with 1961. Foodstuffs at $585.05 million were the principal import representing 48% of the value of all imports from China in 1962 and 36% of the Colony's total imports of foodstuffs. Other imports in order of value were textile yarn, fabrics, and made-up articles, $274.01 million; inedible animal and vegetable crude materials, $58.08 million; non- metallic mineral manufactures, $48.72 million, and clothing $36.06 million.

5

22. The value of exports to China of Hong Kong manufactured articles in 1962 was only $8.47 million. Re-exports fell to $76.92 million.

Japan

23. Japan was second on the list of the Colony's suppliers in 1962, sending goods to the value of $1,097.26 million, which represented 16% of all the Colony's imports. This was a rise of $232.87 million from the corresponding figure for 1961. Textile yarn, fabrics and made-up articles imported from Japan were valued at $423.25 million (an increase of $127.78 million over the value for 1961) and accounted for 39% of the value of all imports from Japan. Other items of importance were base metals, $100.66 million; electrical machinery, apparatus and appliances, $95.56 million; miscellaneous manufactured articles n.e.s. (mainly of plastics), $49.26 million; machinery other than electric, $44.65 million; non-metallic mineral manufactures, $39.29 million; and paper, paper- board and manufactures thereof, $39.19 million.

24. Japan was also second on the list by value of destinations for goods re-exported from the Colony and there was an increase of $20.08 million in value compared with 1961. The total for 1962 was $143.36 million which was spread over a wide range of commodities of which the most important were:-fruits and vegetables; silver, platinum, gems and jewellery; oil seeds, nuts and kernels; inedible animal and vegetable crude materials; and miscellaneous manufactured goods n.e.s.

25. Japan took $76.70 million of Hong Kong exports in 1962 of which ores and metal scrap accounted for $40.11 million.

Malaya

26. Malaya was the most valuable market for the Colony's re-export trade, absorbing goods worth $188.91 million or 18% of all re-exports. Compared with 1961 this represented a slight increase of $3.67 million. Re-exports were spread over a wide range of commodities, the most important being:-sugar and sugar preparations; fruits and vegetables; inedible animal and vegetable crude materials; scientific and controlling instruments, photographic and optical goods, watches and clocks; and textile yarn, fabrics and made-up articles.

27. Malaya was the third largest market for exports of the Colony's produce and manufactures, taking goods valued at $261.86 million in 1962, a decrease of $5.10 million compared with 1961. The main items were clothing ($60.65 million), miscellaneous manufactured articles n.e.s. ($47.24 million), and textile yarn, fabrics and made-up articles

6

($31.84 million) all of which decreased slightly in value compared with 1961.

II. GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES

GENERAL-ORGANIZATION

28. The appointment, in October 1962, of a third Assistant Director made it possible to split the functions of the former Controls Division into two. Since then, the operational branches of the department have been grouped in three divisions, Development, Textiles and Certifica- tion, and Controls. The first is concerned with the development of the Colony's industry and export trade; the second with quota allocations and export licensing of cotton textiles destined for restricted markets and the certification of origin of Hong Kong products; the third deals with trade licensing (other than textiles), dutiable commodities, supervi- sion of the Kowloon Office, and administration of the Preventive Service. The Deputy Director is not immediately responsible for any branch other than Accounts and Administration and is thus free to relieve the Director of more routine matters or to assist where pressure of work demands.

29. All vacancies for Senior Trade Officer, Trade Officer and Assist- ant Trade Officer were filled in the course of the year. By the autumn of 1962, however, the increasing pressure and diversity of the work undertaken by the department made it clear that a further expansion of these and supporting grades was inevitable.

30. Table 7 illustrates the organization of the department at the end of the financial year.

TRADE AGREEMENTS AND MARKET RESEARCH BRANCH

31. The principal concern of this branch 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. In addition, the branch studies the activities and development of inter- national institutions concerned with trade, besides conducting limited surveys of the Colony's trade with other countries and of market potentialities overseas. It is essentially devoted to the collection, analysis and presentation of information on which the policy and activities of the operational branches can be based. For several years, shortage of

7

staff has prevented this branch from operating as a separate entity within the Development Division and, in practice, it has throughout the year consisted only of a section within the Trade Development Branch.

TRADE DEVELOPMENT BRANCH

32. The Trade Development Branch is responsible for organizing the Colony's official participation in international trade fairs, for organizing trade missions sent overseas, and for conducting exploratory visits which help the department to decide, in consultation with the Trade and Industry Advisory Board, the cities and countries in which such promotional efforts should be mounted. The branch also arranges, when required, programmes for trade missions visiting the Colony and handles written and personal trade inquiries from overseas businessmen. 33. A new venture is the display centre of Hong Kong products, opened by His Excellency the Governor in October 1962. This is located in the high block of the City Hall.

INDUSTRIAL DEVELOPMENT BRANCH

34. The Industrial Development Branch collects and analyses indus- trial production statistics with a view to publication. It also acts as a liaison office between industry and other departments of Government, and is responsible for dealing with inquiries about industry from over- seas. It conducts limited surveys of individual industries as need arises. Staffing difficulties and the need to balance the loads carried by heads of branches has made it necessary for the branch to be responsible for the trade publications section, an arrangement which is neither very logical nor organizationally convenient.

35. The Publications Section continued to produce the monthly Hong Kong Trade Bulletin which is sent free to overseas businessmen in 150 countries. It also undertook the preparation and publication of the 1963 edition of the Commerce, Industry and Finance Directory.

36. The section supplied material for "Hong Kong for the Business- man", a short commercial and general guide to the Colony published by the Information Services Department.

37. The section is responsible for the department's reference library which is open to local and visiting businessmen.

STATISTICAL BRANCH

38. The Statistical Branch's main responsibility is the production of the Colony's trade statistics which are printed and published by the

8

Government Printer. The branch also compiles the statistical supplement to the Government Gazette, calculates the Retail Price Index and assists other departments in various ways.

39. Amendments of the Hong Kong Imports and Exports Classi- fication List were introduced on 1st January 1963. These provide for a further breakdown of certain items of clothing important in the Colony's export trade.

40. Planning proceeded for the acquisition and installation of new and improved data processing equipment, including a small computer, which will enable the branch to provide a better service to other departments.

OVERSEAS OFFICES

41. The department maintains two offices overseas, in London and Sydney, whose main function is to promote the Colony's trade in Britain and Australia. The London Office is also concerned, so far as resources permit, to promote trade with western Europe generally. The Assistant Director of the office was responsible for arrangements outside Hong Kong for the Colony's participation in the Nigerian International Trade Fair at Lagos, while the Principal Information Officer made all arrange- ments at the London end for the "Hong Kong Street" at the Ideal Home Exhibition.

42. The Director of the London Office was, during the year, increas- ingly drawn into international discussions on trade matters which con- cern Hong Kong. The work of the office in the field of general public relations also expanded. Close liaison with the Board of Trade and Her Majesty's Customs and Excise continued.

43. The office moved from rented premises in Trafalgar Square to its own commodious building at 54 Pall Mall.

44. The Sydney Office, opened in December 1960, became increas- ingly well known to business and general inquirers throughout Australia. It worked in close liaison with the Hong Kong Tourist Association's office which opened in Sydney during the year.

45. The Trade Representative in Australia visited Hong Kong for two weeks in January 1963 for consultations with the department and to familiarize himself with recent developments in trading and industrial circles.

CERTIFICATION BRANCH

46. During the year the Certification Branch has been responsible for the issue of certificates of Hong Kong origin, comprehensive certi-

9

ficates of origin supporting exports of 'presumptive' type goods to the United States of America, and Commonwealth Preference certificates prepared by approved accountants covering exports to Commonwealth territories which grant preferential tariff treatment to Hong Kong products.

47. Liaison with many overseas Customs authorities continued throughout the year, and this proved helpful in clearing consignments of Hong Kong products held at foreign ports as a result of misunder- standing of customs requirements by local shippers.

48. A number of countries recognize certificates of Hong Kong origin issued by organizations other than the department. These include the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, and the Indian Chamber of Commerce.

TEXTILES BRANCH

49. This is a new branch, established during the year, to administer the control of exports of cotton textiles necessitated by Hong Kong's undertaking to Britain and by requests from other countries for restraint under the Geneva Short and Long-term Arrangements. Control is exer- cised by means of export licensing and, where necessary, by the alloca- tion of quotas to individual manufacturers or exporters.

50. In all these matters, the department is advised by the Cotton Advisory Board, whose composition and functions are described in paragraphs 71 to 77.

TRADE LICENSING AND SUPPLIES BRANCH

51. With the transfer of export licensing of cotton textiles to the new branch mentioned above, and as a result of a decrease in the depart- ment's responsibilities for reserved commodities, the trade licensing and supplies branches were amalgamated during the year.

52. The number of import licences continued to decline, but more export licences were issued than last year, mainly for exchange control

reasons.

53. The branch continued to keep records of stocks of coal, fire- wood, rice, meat and certain other essential foodstuffs held commercially in the Colony and to maintain its own stocks of food and fuel for emergency purposes. Rice import policy remained unchanged.

10

DUTIABLE COMMODITIES BRANCH

54. The branch is responsible for the assessment and collection of import and excise duties. Duty collections continued to increase.

55. On 1st May, 1962 measures were introduced to treat light diesel oil for industrial and marine uses, dutiable at 10 cents per Imperial gallon, in order to distinguish it from that used by road vehicles which attracts a higher rate of duty, namely, 50 cents per gallon when used in public omnibuses and $1 per gallon when used in other road vehicles. 56. A kiosk licensed for the sale of duty free wines and spirits to departing passengers opened in the new terminal building at Kai Tak airport in November 1962 and proved to be a popular facility.

KOWLOON OFFICE

57. During the year the Kowloon Office prepared and issued 94,562 (68,396) tourist, gift plan and mail order comprehensive certificates of origin, or 74% of the total number of such certificates issued during the year. In addition, 14,319 other types of certificates were issued, reflecting the growing popularity of this office with the Kowloon business community.

58. The trade licensing section issued 61,461 import and export licences, and accepted 43,769 trade declarations and manifests.

59. The dutiable commodities section of the Kowloon Office collect- ed some $25.5 million, or 12.6% of the total revenue collected by the department during the year by way of duties and licence fees.

THE PREVENTIVE SERVICE

60. The Preventive Service is a uniformed, disciplined force which exercises most of the functions of a Customs and Excise service in relation to the few commodities which are dutiable in Hong Kong, It is also responsible, in co-operation with the Narcotics Bureau of the Police, for preventing the smuggling of narcotics into and out of the Colony, and during the year made several important seizures.

61. A section of the force works in close collaboration with the Certification Branch and carries out inspections of factories and goods for export in accordance with that branch's requirements.

62. Six cruising launches and their crews were detached in September 1962 to assist the Police in operations to prevent illegal immigration.

11

ACCOUNTS AND ADMINISTRATION BRANCH

63. The Accounts and Administration Branch is responsible for the department's accounts, uniforms and other stores, personnel and general administration and staff welfare. It also looks after the storage, docu- mentation and disposal of confiscated goods. So far as possible, it relieves operational branches of concern for these matters and provides them with guidance when they are necessarily involved.

LEGISLATION

64. There were no major changes in legislation affecting the depart- ment during the year, but a number of minor amendments which were enacted are described in Chapter XIV.

65. Further progress was made with the revision of the Dutiable Commodities Ordinance and the Importation and Exportation Ordin- ance, and with a draft Preventive Service Bill.

TRADE AND INDUSTRY ADVISORY BOARD

66. I take this opportunity to acknowledge the valuable advice and assistance given to the department by members of the Trade and Industry Advisory Board. The Director of Commerce and Industry is ex officio chairman of the board which comprises nine other members who are appointed annually by His Excellency the Governor.

67. 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'.

68. During the year 1962-63 the members of the board were Messrs. G. G. D. CARTER, CHA Chi-ming, Dr. S. Y. CHUNG, Ph.D., the Hon. S. S. GORDON, J.P., Messrs. Daniel LAM, J. S. LEE, R. G. L. OLIPHANT, J.P., G. R. Ross and Seaward Woo, J.P. Mr. A. M. KENNEDY replaced Mr. OLIPHANT from 2nd July to 2nd October, 1962 and the Hon. FUNG Hon-chu, J.P., replaced Mr. Ross from 1st October, 1962 to 28th January, 1963 during the absence of these two gentlemen from the Colony.

69. The board held twelve meetings during the year and gave advice on a wide range of subjects. These included the department's trade promotion programme, with special reference to trade fairs, trade mis- sions and exploratory visits overseas with a view to seeking new market outlets; representation at E.C.A.F.E. meetings; the establishment and

12

running of the display centre of Hong Kong products; problems affect- ing the local transistor and woollen yarn industries; policy regarding sugar imports; adoption of the revised Standard International Trade Classification; and Hong Kong's application for membership of the Asian Productivity Organization.

70. Members also took an active part in the department's trade pro- motion programme. Mr. CHA Chi-ming led the delegation at the Colony's stand at the Nigerian International Trade Fair. Mr. Seaward Woo and Dr. S. Y. CHUNG respectively led the Colony's delegation at E.C.A.F.E. Committees on Trade and on Industry and Natural Resources held in Bangkok early in 1962. Mr. R. G. L. OLIPHANT led one of the two groups of the trade mission to the Middle East. Further details of these activities are given elsewhere in this report.

COTTON ADVISORY BOARD

71. His Excellency the Governor appointed the Cotton Advisory Board in July 1961 with the following terms of reference: 'Arising out of the exceptional issues which the cotton industry in Hong Kong faces, to advise Government on any matter which directly affects the cotton industry in Hong Kong'.

72. The Director of Commerce and Industry is the ex officio chair- man of the board which consists of twelve other unofficial members who are each appointed for a period of one year. The members of the board appointed for the period 21st July, 1961 to 20th July, 1962 were: the Hon. W. C. G. KNOWLES, J.P., and Messrs. CHEONG Ying-chan, C. K. CHOW, CHU Shek-lun, W. C. FLETCHER (succeeded by G. M. R. PEARSON on 9th February, 1962), Lam Kun-shing, H. T. Liu, Mou Lee, NG Yue-kwong, Elmer J. S. TSU, T. Y. WONG, J.P. and Y. L. YANG. These members included representatives of the spinning, weaving, dyeing and finishing, and garment making sections of the industry and of the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries and the Chinese Manufacturers' Association of Hong Kong.

73. When the board was reconstituted in July 1962, the Governor appointed the following gentlemen in their individual and personal capacities rather than as representatives of particular associations: Dr. the Hon. Sir Sik-nin CHAU, C.B.E., J.P., the Hon. W. C. G. KNOWLES, J.P., and Messrs. C. K. CHOW, CHU Shek-lun, LAM Kun- shing, H. T. LIU, NG Yue-kwong, G. M. R. PEARSON, H. J. SHEN, P. Y. TANG, Elmer J. S. Tsu and Y. L. YANG.

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74. During the year under review the board held thirty-four meet- ings. Among the more important matters considered were requests by four countries, namely the United States, Canada, the Federal Republic of Germany, and Norway, for restraint on exports of certain categories of cotton textiles under the terms of the G.A.T.T. Short and Long-term Cotton Textile Arrangements, and the administration of various forms of export controls arising from these requests.

75. During 1962, the board also advised Government to enter into a further undertaking, effective for three years from 1st January, 1963, to restrain exports of cotton textiles to Britain. The board was consulted on a wide variety of topics arising from the undertaking to Britain, the more important of which are described in Chapter X.

76. Messrs. P. Y. TANG and Elmer J. S. Tsu accompanied the Chairman of the board and the Financial Secretary to a meeting of the G.A.T.T. Cotton Textiles Committee at Geneva during September 1962. Mr. Elmer J. S. Tsu and Mr. E. G. A. GRIMWOOD, O.B.E., Director of the London Office of the Hong Kong Government, attended a series of meetings held at the Board of Trade in London during February 1963 to discuss, inter alia, the introduction of a procedure under which Hong Kong might become entitled to supplementary cotton yarn quotas for export to Britain.

77. I am greatly indebted to the members of the board for the long hours which they have devoted to its business and for their wise guidance and assistance in considering the many complex problems which confronted the cotton textile industry during the year.

PUBLIC RELATIONS

78. The department continued to keep in close and useful touch with Trade Commissioners and foreign Consular officials in Hong Kong. It co-operated closely with the Hong Kong General Chamber of Com- merce, the Federation of Hong Kong Industries, and other commercial and industrial associations, and sought their advice on a variety of topics. In this connexion there was set up during the year the Commercial Public Relations Coordinating Committee under the Chairmanship of the Director. Its membership comprised the Chairman of the Federation of Hong Kong Industries, the Hon. Sir Sik-nin CHAU, C.B.E., J.P., the Chairman of the Hong Kong General Chamber of Commerce, the Hon. W. C. G. KNOWLES, J.P., the Executive Director of the Tourist Associa- tion, Major H. F. STANLEY, M.C. and the Director of Information Services, Mr. J. L. MURRAY.

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The Committee's terms of reference are:

(a) to coordinate broad priorities in the use of public and private

funds for commercial public relations;

(b) to coordinate recommendations as to the amount, source and

distribution of public funds for this purpose;

(c) to examine and evaluate reports on the use of funds in relation

to specific projects;

(d) to recommend, in the light of experience and not later than two years hence, whether any other organization should be established to advise on commercial public relations generally and, if so, what should be its terms of reference.

The Committee meet on four occasions during the year under review. Local merchants and manufacturers consulted the department frequently on an extensive range of subjects; similarly, the department itself sought the advice of many individuals during the year. The assistance of all these organizations is gratefully acknowledged.

III. TRADE AGREEMENTS AND MARKET

RESEARCH BRANCH

GENERAL

79. Hong Kong's export trade in 1962-63 expanded at a higher rate than during the previous year, despite the anxieties and uncertainties of trade in cotton textiles. Details of the Geneva Short and Long Term Arrangements for cotton textiles and their effects on Hong Kong are given in Chapter X. Apprehension about the Colony's future trading prospects in Britain continued until January, when negotiations for Britain's entry into the European Economic Community were broken off. These and other problems, which are dealt with in separate sections below, occasioned much activity by the Branch, which continued to be short of staff and was able therefore to achieve no more than limited research work on current problems.

U.N. ECONOMIC COMMISSION FOR ASIA AND THE FAR EAST

80. Mr. Seaward Woo, J.P., a member of the Trade and Industry Advisory Board, who had led the Hong Kong delegation at the 1962 meeting of the E.C.A.F.E. Committee on Trade, headed the delegation to the Sixth Session of the Committee which met in Bangkok in January 1963. He was accompanied by an officer of the department, who had

15

earlier attended the Intra-Regional Trade Promotion Talks (Fifth Series). Dr. S. Y. CHUNG, also a member of the Trade and Industry Advisory Board, represented the Colony at the Committee on Industry and Natural Resources which followed the Committee on Trade. He, too, was accompanied by a member of the department as alternate delegate and secretary. Attendance at these conferences was useful and is believed to have enhanced Hong Kong's prestige among the other countries represented on the Commission.

GENERAL AGREEMENT ON TARIFFS AND TRADE

81. The Colony was represented at the Twentieth Session of the Contracting Parties held in Geneva from 23rd October to 16th November, 1962, and among the items on the agenda there were several of interest to Hong Kong. These included continuing import restrictions for balance of payments reasons; other residual import restrictions; trade in cotton textiles; and the interpretation of the G.A.T.T. in respect of the European Economic Community. One further item which seemed likely to occupy the attention of the Con- tracting Parties for some time to come, was a programme of action put forward by eighteen less developed countries and which was designed to hasten the dismantling of barriers to their trade and to offer to them, and other countries in a similar stage of development, opportunities for increased exports. These proposals were put forward in Committee III which took note of them and recommended to the Session of the Contracting Parties that they should be brought to the attention of the next Ministerial Meeting.

82. In the event, the Contracting Parties agreed that the Ministerial Meeting to be called in 1963 would consider a programme for the effective liberalization and expansion of trade in both primary and secondary products. The meeting was to be asked to recognize the prime importance of negotiating solutions both to problems of trade in primary products and also to the other trading problems of less developed countries. Although it seemed likely that any concrete measures to reduce tariffs and to remove trade restrictions would be gradual and would be concentrated at first on tropical products of the kind considered in Committee II, Hong Kong being on the Development Assistance Committee List of O.E.C.D., was clearly likely to be an interested party at some stage. The Ministerial Meeting was to be held in May 1963.

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83. Closely connected with these activities of the Contracting Parties to G.A.T.T. was the proposal for a Conference on World Trade Development to be held under the auspices of the United Nations in 1964. This proposal secured the support of many of the less developed countries, including several which are Contracting Parties to G.A.T.T. but are dissatisfied with the present interpretation and enforcement of the General Agreement. These developments were watched closely by the department.

THE EUROPEAN ECONOMIC COMMUNITY AND THE EUROPEAN

FREE TRADE ASSOCIATION

84. The news of the failure of Britain to gain admittance to the European Economic Community was received with a certain amount of relief in Hong Kong, as it was clear that Britain's entry would have had profound effects on the system of Commonwealth Preference and thereby on a section of Hong Kong's export trade which exceeds one- third of the whole.

85. The levelling up and down of the various tariff structures of the Community in accordance with the provisions laid down in the Treaty of Rome for the establishment of a common external tariff had no adverse effects on the Colony's trade with the Community. On the contrary, trade with all the member States, except Italy, showed a sub- stantial percentage increase over the previous year's results.

86. Developments in the European Free Trade Association were overshadowed by events in the E.E.C. and had little effect on Hong Kong's trade which progressed steadily with the constituent countries of the Association.

OBSTACLES TO FREE TRADE

87. The following paragraphs illustrate some of the obstacles which have discouraged or limited the export of Hong Kong goods to various countries during the year under review. In some cases restrictive measures have been adopted on a global basis, in others it is clear that discrimination has been directed specifically at Hong Kong. The depart- ment keeps local trade and industrial associations informed of such developments and assists them in preparing representations or, where appropriate, initiates representations at Government level.

Canada

88. In June 1962 Canada announced additional surcharges on the import of a wide range of commodities, several of which affect Hong

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Kong's trade. The rates of surcharge varying between 15 per cent, 10 per cent and 5 per cent ad valorem are determined by an assessment of luxury value and availability from domestic industry.

France

89. The discrimination mentioned in last year's report against goods originating in Hong Kong continued throughout the year under review. The 1962 quotas for Metropolitan France were raised slightly in the case of one or two items from those of the previous year, but the majority of items remained at the existing level. Clocks, watches, watch cases and parts were removed from the list of items subject to quantita- tive restrictions when originating in Hong Kong.

90. The value of Hong Kong's domestic exports to France in 1962 rose to just over $9 million, but since imports during the same period came to $63.9 million, the adverse trade balance continued to increase.

Commonwealth of Australia

91. The Commonwealth Government imposed increased duties during the year on cotton yarn and a temporary additional duty on terry towelling and on certain textile articles. On the other hand, it cancelled the primage duty of 10% on textile articles other than piece- goods. The tariff on bolts, wood screws and metal washers was also revised, resulting in duties being reduced by 15% to 30% ad valorem. A number of Tariff Board inquiries, instigated by Australian manu- facturers seeking protection for their products, were pending at the end of the year, of which the following were of interest to Hong Kong: terry towelling, knitted outerwear, cotton sheeting and pillowcases, other than unbleached, dolls and parts, filament lamps, preserved ginger (not in liquid) and ginger in syrup.

Federation of Rhodesia and Nyasaland

92. Negotiations continued in a cordial atmosphere between the department and representatives of the Federal Government concerning implementation of the G.A.T.T. waiver to restore preference rates on a number of important Hong Kong exports, as mentioned in last year's report. In November 1962 the Federal Government announced the imposition of import controls on certain types of piecegoods containing more than 50% of cotton, or 50% of rayon. Unless repealed earlier, these controls will expire on 31st December, 1964. Meanwhile tariff investigations were pending on towels and towelling, enamelware,

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millinery, drapery, haberdashery, textile articles of napery, socks and stockings.

Ghana

93. The Government of Ghana made further changes in its customs tariff, several of which affect Hong Kong's exports to that country. The items of principal interest were enamelware, cotton and woollen piece- goods, shoes, boots, travel goods made of vulcanized fibre, plastic sheeting and textile fabrics. Increases ranged from 34% to 331% ad valorem.

Singapore

94. There were indications during the year that certain fundamental changes had begun to take place in Singapore's traditional status as a free port. On 1st April, 1962 a customs duty of 20% ad valorem was established on paints, enamels, varnishes and distempers. In January 1963 the Tariff Advisory Commission was requested to consider the advisability of introducing a customs tariff to protect thirty categories of goods which are manufactured in Singapore. Several of these have already been subjected to individual import licence control; mono- sodium glutamate, rubber shoes with textile uppers, flashlight and transistor radio batteries are among those of interest to Hong Kong.

Iraq

95. Early in 1963 the Government of the Republic of Iraq announced the imposition of a complete ban on imports into that country of goods from Hong Kong. No reason was given for this action. Shortly afterwards there was a change of government in Iraq, but the ban was still in force at the end of the year under review, apparently pending a re-appraisal of economic policy by the new Government.

OFFICIAL EXCHANGE

96. 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.

COMMERCIAL COMPLAINTS

97. Where a complaint given to the department alleges infringement of a registered trade mark, the department has powers under the Mercandise Marks Ordinance, Cap. 41, to assist where justifiable any complainant in a private action by seizing or detaining goods in relation

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to which an offence against the provisions of the Ordinance is believed to have been committed. Assistance of this nature was given in sixty- one cases during the year. Official prosecutions are undertaken only in cases which appear to affect the general interests of the Colony, or of a section of the community, or of a trade. Forty-two such cases were undertaken during the year.

IV. TRADE DEVELOPMENT BRANCH

OVERSEAS ACTIVITIES

Trade Promotion by Hong Kong

98. On the advice of the Trade and Industry Advisory Board, it was decided that trade promotion during the year should be concen- trated on areas with which the Colony's trade relationships were relatively undeveloped. It was hoped by this means to lessen the dependence of Hong Kong on its export trade with the United States and Britain, which for some years have taken over 40% of the Colony's domestic exports. With this in view, the programme for the year contained as its main projects a trade mission to the Middle East and participation in the Nigerian International Trade Fair in Lagos. A unique opportunity for promotion in Britain presented itself through an offer by the promoters of the Ideal Home Exhibition to include a 'Hong Kong Street' as a feature of the 1963 exhibition. The important part played by the London Office in the two latter events is described in Chapter VIII.

Nigerian International Trade Fair

99. The Nigerian International Trade Fair held in Lagos from 27th October to 18th November, 1962 offered an opportunity to exhibit Hong Kong products in West Africa for the first time. Hong Kong's stand, designed by a firm in Lagos, occupied an area of 2,000 sq. ft. in a pavilion shared with Switzerland, Iceland and Lebanon. The exhibit comprised some 1,500 articles and covered a wide range of products selected for their appeal to West African markets. Among the items sent was a carpet specially woven for the Fair depicting the Nigerian torch symbol.

100. The delegation was led by Mr. CHA Chi-ming, a member of the Trade and Industry Advisory Board, and consisted of Mr. TANG Wo, deputy leader, five other businessmen, the secretary of the Hong Kong General Chamber of Commerce, the Assistant Director of the

20

London Office, an officer from the Information Services Department and three members of the department. The inclusion of an information officer in the delegation proved a valuable innovation and during the period of the fair Hong Kong had at least one story a day in Nigerian newspapers and periodicals. Effective coverage was also obtained on radio and television networks. Over 1,200 trade inquiries were recorded and forwarded to the department for circulation to local trade organizations and to suppliers of the products displayed.

Ideal Home Exhibition

101. In May 1962 Hong Kong received an invitation from the organizers of the Daily Mail Ideal Home Exhibition in London to mount a special feature at the 1963 exhibition to be held at Olympia from 5th to 30th March. The invitation was accepted and an exhibit planned in collaboration with the Information Services Department and Government's London Office.

102. The 'Hong Kong Street' was composed on one side of a series of five booths in which typical Hong Kong craft products were shown in the actual process of manufacture. Ten Chinese craftsmen were flown to Britain and worked at the exhibition weaving carpets, carving ivory and wood panels, painting wallpaper and making jade jewellery. The other side of the 'Street' was devoted to a prestige display of modern Hong Kong manufactures, with emphasis on a variety of local products which would interest the homemaker. A small area on this side was allocated to welfare organizations in Hong Kong for the dis- play and sale of items such as scrolls, beaded and embroidered hand- bags, sweaters and dresses, artificial birds and Chinese cloth dolls.

103. More than a million persons visited the Exhibition and it was reliably estimated that three quarters of them window-shopped in the 'Hong Kong Street'. On this occasion the main object was not to attract trade inquiries but to interest the ordinary consumer in Hong Kong and in its manufactures. Nevertheless, over one hundred trade inquiries were recorded.

104. Much of the success of the Colony's participation was due to the publicity it attracted in the early days of the exhibition. Television stations and the press gave the 'Hong Kong Street' and its craft workers blanket coverage. Distinguished visitors to the 'Street' included members of the Royal Family.

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Middle East Trade Mission

105. Following an exploratory visit by an officer of the department twelve months earlier, the Trade and Industry Advisory Board recom- mended that an official Trade Mission be sent to 13 countries in the Middle East at the turn of the year 1962-63. The area is one to which the Colony's competitors have been selling consumer goods in rising quantities in recent years, and seemed likely to repay promotional attention.

106. Because of the size of the area to be covered, the Mission operated as two separate groups for most of the itinerary, leaving Hong Kong on 27th December, 1962 and returning on 22nd January, 1963. Group I visited Iran, Iraq, U.A.R., Libya, Cyprus, and Lebanon, and Group II Iran, Kuwait, Bahrain, Qatar, Abu Dhabi, Dubai, Jordan, Syria and Lebanon; the two groups worked together in Iran and Lebanon.

107. The composition of the Mission was as follows:

Group I

Mr. P. Y. TANG (Leader)

Mr. H. J. SHEN

Mr. J. ENG

Mr. D. J. MARSH, Trade Officer

of the Department.

Its terms of reference were:

Group II

Mr. R. G. L. Oliphant, J.P. (Leader) Mr. David S. C. LAM

Mr. D. M. SELLERS, Assistant

Director of the Department.

'to promote two-way trade between Hong Kong and the countries to be visited; to foster good trade relations; to explain Hong Kong's economic position and industrial development to official and trade organizations; to ascertain what opportunities exist for expanding Hong Kong's exports to the countries on the itinerary and what difficulties exist, or may arise, to impede such growth; to recommend the form that future trade promotion activity in the area should take'.

Preparation of the Mission's brief and travel arrangements were under- taken by the Trade Development Branch and detailed arrangements for the programme of appointments were planned with the co-operation of the British diplomatic posts in the countries to be visited. In each of these countries the Mission called on the members of government responsible for economy and foreign trade, on the banks, the chambers of commerce and other trade associations. Members also met and held discussions with individual businessmen concerning their sources of supply and methods of doing business. From all these valuable talks,

22

Federation of Hong Kong Industries besides officials of the department, discussed the possibility for increasing the sales of traditional Afghani products and further purchases of textiles and pharmaceuticals.

114. An economic and trade mission from Belgium paid an official visit to the Colony between 19th and 25th May. The Mission of twenty- five persons was led by H.R.H. Prince Albert of Liege, brother of H.M. King Baudouin, and the deputy leader was the Vicomte Obert de THIEUSES, honorary Administrator Director General of Foreign Trade. In consultation with the Belgian Consul-General, a programme of dis- cussions was arranged with trade and industrial associations, bankers and individual businessmen. The Mission called on the Director on 21st May, during which visit its members showed understanding of the Colony's economic and trading problems and expressed interest in investment in joint ventures in Hong Kong.

115. A Sudanese Commercial Mission of seven members headed by Mr. Mansour Mahgoub MOHAMMED, Director of the Ministry of Com- merce, visited Hong Kong from 3rd to 6th June. The Mission was accompanied by Mr. Abdul Karim MIRGHANI, Sudanese Ambassador to India and Japan. A programme of activities was arranged and included discussions with the department, the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries and the Hong Kong Cotton Spinners' Association. The main subject of discussion was the export to the Colony of Sudanese raw cotton, particularly of short staple varieties similar to those purchased by Hong Kong in large quantities from Tanganyika.

116. The Hon. C. G. KAHAMA, M.P., Minister of Commerce and Industry in Tanganyika, accompanied by the Permanent Secretary of the Ministry and a Commercial Development Officer, paid an official visit to Hong Kong between 21st and 26th July. During their stay discussions were held with officers in the department and arrangements were made for them to meet representatives of the leading trade organizations. Mr. KAHAMA's primary purpose was to stimulate interest in industrial invest- ment in Tanganyika and the opportunity was taken to show him the products collected for display at the Nigerian International Trade Fair, and to discuss the possibility of increasing the export of Hong Kong products to Tanganyika.

117. A twenty-three member Italian trade mission led by the Hon. Bruno ROMANO, a member of the Italian Parliament, visited the Colony from 23rd to 25th September, for the purpose of promoting two-way trade. During their stay members of the mission had discussions with

24

MAKING PA

local businessmen and trade organizations and with officers of the department. Another Mission from Italy visited Hong Kong for five days from 15th December. It was led by Senator Danick TURANI and comprised members of Government departments and representatives from fifty-two Italian firms. The mission was sponsored jointly by the Ministry for Foreign Affairs and the Ministry for Foreign Trade and its object was to make preliminary contacts and arrangements with local firms interested in taking part in the 'Italia Produce' Exhibition to be held in Hong Kong in March 1963.

LOCAL EXHIBITIONS

Display Centre of Hong Kong Products

118. In November 1960 the Trade and Industry Advisory Board appointed a sub-committee headed by the Hon. S. S. GORDON, J.P., to 'advise whether Hong Kong was in need of a permanent display of its industrial products and, if so, what form such display should take and how it should be organized'. As a result of the sub-committee's report presented in June 1961 the Board recommended that a display centre of Hong Kong Products be established initially on a temporary basis for a period of two or three years so that the value of a permanent display might be assessed.

119. His Excellency the Governor opened the centre on 24th October, 1962. It is centrally located on the second floor of the City Hall, High Block, and its aim is to provide an attractive and conveniently placed display of Hong Kong manufactures, together with a full information service maintained by the department upon the supply of all the Colony's products. A well-known firm of local architects designed the layout and the display of products is arranged by an expert consultant.

120. The centre has an exhibit area of about 3,500 sq. ft. and the display is changed frequently to afford all sections of Hong Kong's industry an opportunity of showing their products.

121. At the end of March 1963, 5,233 persons had visited the centre. Two thousand seven hundred and seven inquiries about Hong Kong products were dealt with, including 1,157 from overseas visitors, many of whom have acknowledged the usefulness of such a facility.

122. In addition to the centre, a small display of local products is maintained in the reception room of the department's headquarters, and continues to interest visitors from overseas.

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The 20th Exhibition of Hong Kong Products

123. The 20th Exhibition of Hong Kong Products, sponsored and organized by the Chinese Manufacturers' Association, was held from 27th November, 1962 to 4th January, 1963 on a site formerly occupied by the Royal Naval Dockyard. As in the previous year, the exhibition consisted of three sections: general stalls for retail sales, a prestige display of Hong Kong products and a display of industrial machinery and raw materials. The department assisted with administrative arrange- ments and acted as a link between the Association and other Govern- ment departments.

Italia Produce Exhibition

124. As mentioned earlier in this report, an ‘Italia Produce' Exhibi- tion sponsored by the Italian Government was held from 1st to 15th March, 1963. It covered an area of 50,000 sq. ft. in the former Royal Naval Dockyard site and was by far the largest foreign trade exhibition ever held in the Colony. Products displayed included machinery and light consumer goods. The Hon. Ferdinando STORCHI, Italian Vice- Minister of Foreign Trade, officiated at the opening and Professor Luigi PRETI, Italian Minister of Foreign Trade, performed the closing ceremony. The Italian Government invited delegations from many South-east Asian countries to visit the Exhibition, the purpose of which was twofold: to promote the sale of Italian products in Hong Kong and to develop Hong Kong as a distributing centre for Italian goods in South East Asia. It is understood that the Exhibition was an un- doubted success.

Inquiries and Complaints

MISCELLANEOUS

125. The volume of trade inquiries received from overseas firms continued to increase. The majority came from the United States, Britain, Australia, Canada and Nigeria, and covered a wide range of Hong Kong products, including such popular items as wearing apparel, transistor radios, electrical accessories, plastic goods, plastic flowers, toys and novelties. Overseas businessmen seeking the department's assistance in establishing contacts with local firms came from almost every country in the world. The number of requests from local com- mercial interests for information on matters pertaining to trade also showed a corresponding increase.

126. The number of commercial disputes in which the department was asked to mediate rose considerably. A total of 443 complaints

26

were received from overseas firms or individuals, compared with 329 recorded during the preceding year. Most of them were amicably settled as a result of the department's intervention. Thirty-four local firms sought assistance in obtaining settlement of their disputes with overseas firms.

Export Credit Guarantees

127. In September the Government appointed a Working Party comprising three representatives of the commercial community and three civil servants, including one from this department,

'to advise whether an Export Credit Insurance Scheme should be set up in Hong Kong and, if it does so advise, to draw up detailed proposals for its introduction'.

It is clear that, in the years to come, a steady expansion in the volume of domestic exports must be achieved and the Working Party was concerned with the question whether the kind of cover afforded by an export credit insurance scheme, operating on broadly the same principles as the Export Credits Guarantee Department in Britain, would be of material assistance. The Working Party's report was nearly ready at the end of the year.

V. INDUSTRIAL DEVELOPMENT BRANCH

Textile Spinning

128. At the end of the period under review there were 32 cotton spinning factories registered with the department for certification pur- poses, employing over 19,600 workers and operating 619,524 spindles, an increase of approximately 5,000 over the total at the end of March 1962. Production of cotton yarn was approximately 236 million lbs. ranging mainly from 10s to 60s counts, carded and combed in single or multiple threads. A new development during the year has been the production of yarn made up of various mixtures of artificial and natural fibres. It is anticipated that production of this type of yarn will play an important role in the future development of the local cotton spinning industry.

129. Local wool spinning expanded considerably during the year and production of woollen yarn increased from a total of 5.1 million lbs. in 1961-62 to 8.4 million lbs. or about 63%.

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Textile Weaving

130. There was some contraction in the capacity of the weaving section of the textile industry. At the end of March 1963, there were 175 cotton weaving factories registered with the department for certification purposes, with a total of 19,197 looms installed, as com- pared with 178 factories with 20,638 looms in 1961.

131. The total production of cotton piecegoods during the period under review was approximately 513 million square yards, consisting chiefly of cotton grey drill, canvas, shirtings, poplin, gingham, and other bleached and dyed cloth and prints. As in the spinning industry, there has been an increasing use of man-made fibres in the weaving sector and piecegoods made up of mixed synthetic and cotton yarns are now being produced in commercial quantities.

Textile Finishing

132. In general, textile finishing lagged behind other sections of the industry in volume of output, but a variety of new processes has been introduced in local finishing factories including improved multi- colour screen printing, pre-shrinking, and polymerizing of fabrics both for export in the piece and for making up by local garment factories.

Cotton Knitting

133. The cotton knitting industry expanded during the year under review, with the number of factories increasing from 266 at the end of March 1962 to 312. According to the records compiled by the Labour Department there was an increase of 3,266 workers employed during the same period bringing the total up to 14,148. Products of the knitting mills included towels and towelling, as well as interlock materials of cotton, wool, rayon and nylon.

134. There was also a slight increase in the number of factories producing knitted gas mantles. At the end of March 1963 there were 9 factories employing 438 workers with exports amounting to about $5.5 million. The corresponding figures for 1961-62 were 9 factories, 394 workers and exports valued at $3.7 million.

Woollen Knitting

135. The rapid growth of the woollen knitwear industry continued and was strengthened by the corresponding growth in the woollen spinning industry. At the end of the period under review, there were 112 factories in operation employing over 14,696 workers. Production

28

of woollen knitwear of all types, including gloves amounted to over $200 million in 1962-63 an increase of over 85% on 1961-62.

Wearing Apparel

136. The Colony manufactures an almost unlimited range and variety of garments including all types of shirts, underwear, outwear (both knitted and woven), neckwear, gloves, hats and caps, socks and stockings. After the recession in 1961, the volume of exports resumed an upward trend. In spite of some uncertainty in the trade at the begin- ning of the year, the garment industry continued to flourish. By the end of the period under review, the industry employed a labour force in excess of 55,000 workers in about 1,057 industrial undertakings. The value of exports in 1962 reached $1,147 million, an increase of 33% on the value for the previous year.

Plastics

137. The plasticware industry registered a further expansion. By the end of the period under review, there were 31,408 workers employed in some 968 factories, as compared with 26,589 workers and 807 factories at the end of March 1962. A wide range of plastic articles were produced, but plastic flowers continued to be in strong demand. Exports of plastic flowers increased from $195.2 million in 1961 to $197.1 million in 1962. The chief buyers again were the United States and Britain.

138. Exports of plastic toys of all kinds, many incorporating locally made friction and electric motors, again showed a satisfactory increase; exports being valued at about $146.0 million compared with $115.7 million the previous year.

139. Among the new products made from plastics were furniture, double-walled heat-insulated tumblers and jugs, floor tiling and decorative wall panels. Other products were P.V.C. sheeting and fabrics, foam plastic and articles made therefrom.

Light Metal Products

140. By the end of the period under review there were 859 factories in this category, with a total labour force of 30,978. Enamelware and metal torches were the most important and well established sections of this industry.

141. The enamelware industry experienced a modest contraction in exports which amounted to $61.9 million as compared with $63.4

29

million in 1961-62. At the end of March 1963, 4,048 workers were employed by the 21 local factories registered with the Labour Depart- ment, compared with 4,103 workers in 21 factories at the end of the previous financial year.

142. The manufacture of metal torches showed an improvement and, at the end of March 1963, there were 41 factories employing 6,836 workers as compared with 41 factories employing 6,262 workers in 1961-62. The total value of exports amounted to about $44 million, the main markets being the United States and Britain. The year was one of consolidation for this industry, but by the end of March a new factory had been completed, which, when in production later in 1963, will be the largest of its kind in the world.

Transistor Radios

143. By far the most dramatic industrial development was in the manufacture of transistor radios. The expansion experienced in the previous year continued during the period under review, but at a much greater pace. Nine new factories were established during the year which almost doubled the number of 1961-62. Although certain components for the manufacture of the radios were still imported, many more were produced locally to supply the industry. However, the most important development has been the setting up of a factory by a large foreign company which, by the end of March, was producing increasing numbers of silicon transistors.

144. An indication of the rapid growth of this industry can be seen from export figures. For the year ending 31st March, 1963, the export value of transistor radios amounted to well over $39 million, compared with only $19 million in the previous year. Production consisted chiefly of pocket type radios with 6 transistors and one wave band, but larger models, with multi-wave bands and stronger output were also produced in increasing numbers.

Manufacture of Machinery

145. The manufacture of machinery is becoming of major signi- ficance as one of Hong Kong's heavy industries. A variety of machines was produced during 1962-63 including textile machinery, diesel engines, diesel operated generators and pumps, plastic moulding machines, presses, seaming and planing machines. Besides supplying local industrial users, machines were exported to over 70 countries, principally in South East Asia, the Middle East and Africa.

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Shipbuilding

146. A world recession in shipbuilding affected Hong Kong during the year and no large ships were constructed. Repair work rather than new construction was the main activity in local shipyards. The building of small vessels was not so adversely affected, and exports of yachts, pleasure cruisers and other small craft increased. A new development in local boatbuilding was the use of fibre glass in making pleasure craft. The industry employed over 8,000 workers at the end of the period under review.

Shipbreaking and Steel Rolling Mills

147. The year 1962 has been a year of contraction for the ship- breaking industry. The gross tonnage of ships broken up was the lowest since 1958 as was the total volume of exports of iron and steel scrap. At the same time manufacturers of steel bars and rods faced a severe drop in price throughout the period despite the extensive building activity in the Colony. This was mainly due to increased competition from low cost imported Japanese steel bars which accounted for just over half the total imports of steel bars from all sources in 1962-63. During the year the estimated local production of bars was approxi- mately 146,000 tons.

148. Despite the contraction in both shipbreaking and steel rolling, firms readily availed themselves of new sites in Junk Bay which the Government put up for auction in October 1962, as part of its scheme for re-siting this industry. At a public auction a total of 1,704,100 sq. ft. divided into 5 lots was sold, and the firms which purchased land are now actively engaged in developing their sites.

149. There are several rolling mills producing stainless steel, brass and aluminium sheets and circles, most of which are used locally for the manufacture of consumer goods.

Diversification and New Products

150. The year saw the continued diversification of products within established industries as well as the growth of new industries. The food industry began the production of fresh-frozen Chinese food and recon- stituted milk was produced for local consumption. Another important new industry was the production of transistors for radios (referred to in para. 143).

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LAND FOR INDUSTRY

151. To assist in dealing with requests for information and assistance in obtaining sites or premises for industry, the department maintained a record of the major development schemes and land sales.

Kwun Tong

152. The reclamation to form the site of the Kwun Tong industrial estate is now in an advanced stage. Of the 270 acres project, 231 acres had been reclaimed by 31st March, 1963. At the same time, over 130 factories were in operation and construction work was completed or in progress on a further 23 sites. During the year, 44 sites with individual areas varying from 4,000 sq. ft. to 60,970 sq. ft. were sold at prices ranging from $30.24 to $65.06 a sq. ft.

Tsuen Wan Kwai Chung

153. The Colony's other large land development and reclamation scheme is in the Tsuen Wan/Kwai Chung area of the New Territories. This scheme will eventually turn the whole area of Tsuen Wan, Kwai Chung and Tsing Yi Island into an industrial town of 650,000 people. The main reclamation work will be in Gin Drinker's Bay and it is estimated that the whole scheme will provide 500 acres of useful land.

Other Areas

154. During the year, 70 industrial sites ranging from 4,500 sq. ft. to 400,000 sq. ft. were sold in San Po Kong, Tai Kok Tsui, North Point, Aberdeen, Chai Wan, Cheung Sha Wan, Yau Tong Bay and Cheung Kwan O.

INDUSTRIAL SURVEYS

155. A number of surveys were carried out on various aspects of local industry. Comprehensive data relating to land sales and avail- ability of flatted factory premises were obtained and tabulated.

156. Industries surveyed during the year included the manufacture and assembly of transistor radios, cotton and woollen weaving and spinning, the manufacture of woollen knitwear, garments, sawmills, boatyards, shipbreaking and steel rolling mills. A survey was also carried out on all factories operating in Kwun Tong industrial estate.

INDUSTRIAL PRODUCTION STATISTICS

157. The year 1962 was the second year of operation of the scheme to obtain production statistics. Questionnaires covering quarterly pro-

32

duction and labour data were sent to over 7,000 industrial establish- ments. Response to the quarterly questionnaires has varied between 55% and 60%. In general, the percentages are still too low to provide reliable projections for the whole industry, but useful information has been gathered from certain individual industries where the percentages are high enough to make reasonable estimates. Analysis of the data produced in a full survey of the textile industry has provided useful information on the cost structure of the industry, and valuable experience has been gained in the operation of such a scheme and the problems and attitudes of industry in relation to it.

PRODUCTIVITY

158. It became increasingly apparent during the year under review that, with the rapid rise in the production of consumer goods for export and the reliance on continued industrial development to maintain the Colony's economic stability, it was necessary for Government to take the initiative in co-ordinating ways and means of introducing new methods into Hong Kong's industries in order to increase productivity. In early March 1963 His Excellency the Governor appointed a Working Committee on Productivity with the following terms of reference:

(a) to examine what is at present being done in Hong Kong to increase productivity and, having regard to Hong Kong's existing and probable future economic development and the structure of local industry, to assess whether further measures are necessary, particularly with a view to co-ordination of activities in this field; (b) to examine methods used in other countries, particularly in Japan, to attain greater productivity and make recommendations as to what methods should be adopted by Hong Kong, in particular to:

(i) advise whether a Productivity Council is desirable and, if so, in what form it should be constituted with particular re- ference to composition and responsibilities;

(ii) advise whether a Productivity Centre should be established and, if so, to recommend the functions, organization, staffing, siting and financing of such a centre;

(iii) advise on the capital and recurrent costs of the implementa- tion of any other recommendations made by the Committee.

159. The committee, under the chairmanship of the Commissioner of Labour, included the Director of Commerce and Industry, the

33

Director of Education, the Deputy Economic Secretary, and representa- tives of the Federation of Hong Kong Industries, the Hong Kong General Chamber of Commerce, the Chinese Manufacturers' Association, the Hong Kong Management Association and the University of Hong Kong.

VI. TRADE PUBLICATIONS SECTION

GENERAL

160. The Trade Publications section is responsible for the production of the annual Commerce, Industry and Finance Directory, the monthly Hong Kong Trade Bulletin and such other trade promotional publica- tions as may be decided upon from time to time on the advice of the Trade and Industry Advisory Board. It is also responsible for the maintenance of the departmental library of books and photographs. Commerce, Industry and Finance Directory

161. Approximately twenty-four thousand copies of the 1962 edition of the Commerce, Industry and Finance Directory were distributed free of charge to overseas firms and businessmen, to airlines, shipping com- panies, trade and travel associations and to British Embassies and Consulates. About one thousand copies were sold locally.

162. Compilation of the text, the selection of photographs and cover design, and the examination of art work for all advertisements for the 1963 edition was either completed or in the final stages at the close of the year under review.

163. Much of the text, which runs to 101 pages, remains substantially as in last year's issue and the layout of the 1962 edition has also been closely followed. Some slight rearrangement of the list of contents and the appendices has been made and some sections in the text added or re-written to include developments in light industry, textile quotas, resettlement and housing. A section entitled 'Chinese Festivals' has been added to the chapter containing miscellaneous information for visitors to the Colony.

164. In the 1963 edition there are sixteen pages of multi-colour and twenty-four pages of black and white photographs. The edition also carries thirty-one colour and sixty-six black and white or black and one colour advertisements placed by local firms. The department wishes to acknowledge the co-operation received from other departments, firms and individuals who assisted in revising and rewriting the text. The department is also grateful to the printers for their helpful advice and support.

34

Hong Kong Trade Bulletin

165. The aim of the Trade Bulletin is to introduce to overseas buyers the products of new local industries and, at the same time, to keep the Colony's established industries in the public eye. The part which it plays in thereby promoting Hong Kong's trade is reflected in the increased correspondence received during the year from overseas firms and businessmen wishing to receive the publication. In 1962-63, 2,400 names were added to the mailing list; as a result, circulation at the end of March 1963 was in the region of 14,000 copies a month. While the majority of these are sent free of charge to firms and business- men overseas interested in trading with Hong Kong, local subscriptions and sales have also continued to increase.

166. The overseas trade inquiries section, which appears as a supple- ment to the local edition of the Trade Bulletin, is well patronized by overseas businessmen and some fourteen hundred trade inquiries were published during the year.

167. Feature articles have emphasized Hong Kong's quality products and high standards of workmanship and, while the earlier changes in format have proved very successful, new ideas are always being con- sidered. Requests continue to be received for permission to reproduce photographs and articles.

168. The department acknowledges the help given by the Information Services Department, commercial studios and photographers who have provided photographs throughout the year, often at very short notice. The technical advice and co-operation of the two printers have continued to be invaluable.

169. The publication date of the Bulletin was advanced seven days with each issue from December 1962, with the object of eventual publication a month before the first of the month shown on the cover, in order to ensure that copies sent overseas reach their destinations early in the month of issue.

Other Publications

170. 'Hong Kong for the Businessman', a short pocket guide con- taining both commercial and general information on the Colony was published by the Information Services Department from material supplied by this department, and was distributed during the year. Some 12,000 copies were sent overseas to British Embassies and Consulates, airlines, shipping companies, trade and travel organizations, and the London and Sydney Offices.

35

171. Copies of the guide, along with colour pamphlets featuring some of the Colony's products and industries prepared for the department by the Information Services Department, were also distributed at the First Nigerian International Trade Fair in Lagos in October 1962, and at the Ideal Home Exhibition in London in March 1963.

172. The section continued to operate in conjunction with the Information Services Department, the Hong Kong Tourist Association, the London and Sydney Offices, airlines, shipping companies and trade and travel organizations in the distribution of information on Hong Kong and its industries.

DEPARTMENTAL LIBRARY

173. The department received publications regularly from over 90 territories and the library now contains some 3,000 books, pamphlets and magazines which are available for reference by members of the public. These include commercial directories, books and magazines on particular trades and industries, statistics and information on quotas and tariffs in overseas territories.

174. There is also a collection of about 4,000 black and white photographs and colour transparencies depicting various aspects of the Colony's trade, products and industries which, for the most part, have been featured in the department's publications.

175. The opening of the display centre at the City Hall offered an opportunity to reduce the size of the former library and display room so as to provide an additional office. In effect, the number of show- cases was reduced and these were concentrated in a new waiting room at the entrance to the library. The goods displayed were changed regularly to ensure that a representative selection was shown.

VII. STATISTICAL BRANCH

GENERAL

176. The Hong Kong Imports and Exports Classification List was amended, as from 1st January, 1963. The object of the amendments was to classify separately (a) clothing, knit or made of knitted fabrics, wholly or mainly of wool; (b) dress shirts, other than knitted, wholly or mainly of cotton; and (c) overalls and pinafores, other than knitted. The amendments were published in the Hong Kong Government Gazette

36

MARINE DELAS MENT CERARY

and consequential alterations were made in the index at the back of the published trade statistics.

177. Returns from public companies and other Government depart- ments continued to be collected for inclusion in the Statistical Supple- ment to the Government Gazette, which is published monthly, and improvements in the scope and layout of some of the tables were made.

178. The branch continued to give statistical information and advice to other branches of this department, to other departments, and to a large number of outside concerns throughout the year.

TRADE STATISTICS

179. Details of revenue collected for the services provided by the branch during the year ending 31st March, 1963 with comparative figures for the previous year, are shown in the table below. With effect from 1st November, 1962 a $2 stamp was required to be affixed to declarations instead of the $1 previously required. In imposing the increase in stamp duty, Government announced that the revenue from this source, together with a matching contribution from general revenues, would be made available to a joint committee of the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries for use on measures to improve the Colony's public relations overseas in the commercial sphere.

1961-62.

1962-63

$

$

Stamp duty on declarations

859,785

1,262,066

Fees for landing certificates

16,070

14,530

Fees for statistical information

6,970

7,330

Fees for endorsement of ships' manifests

2,560

3,170

Total

885,385

1,287,096

180. A total of 911,341 (859,785) import, export and re-export declarations was received during the year ending 31st March, 1963. Of the above total, 42,002 declarations were collected through the Kowloon Office of the department.

181. Some importers and exporters failed to submit their declarations within the prescribed time limit, and this resulted in a total of 109,835 reminders being sent during the year 1962-63. Queries about incorrect details given on declarations and cargo manifests totalled 34,037.

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182. The number of ships' cargo manifests received during 1962-63 was 43,517 (35,941).

STATISTICS OF TRADE BY PARCEL POST

183. The present method of collecting parcel post statistics is that merchants are requested to complete voluntarily each month a return on a simple form indicating the total number and total value of packages they have imported or exported through the post during the previous month; only commercial transactions are required. Although efforts were again made during the year to encourage merchants to complete these returns, the response rate has declined as a comparison with the recorded total number of parcels exported and imported through the Post Office shows.

184. A total of 732 (955) returns was received during 1962-63. The number and value of parcels declared were as follows:

1962-63

Despatched:

Number of parcels

Value

Received:

Number of parcels

Value

1961-62

14,531 $ 8,822,423

10,562 $6,060,547

18,950 $10,818,819

13,626

$9,374,074

185. 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.

186. There is no classification of parcel post into exports and re- exports, and parcel post which is despatched is recorded in the Trade Statistics as exports.

MECHANIZATION

187. The automatic data processing installation operated to capacity throughout the period, and the machine operators worked many hours of overtime at peak periods.

188. Government decided during the year that there was a need for additional and more modern equipment, and that the department's enlarged machine room, which would include a small computer, should also serve the needs of the Education Department, together with certain of those of the Stores Department. In consequence, an order was placed

38

with International Computers and Tabulators Ltd. for the following equipment: one 555 type plugged programme computer; two 902 type tabulators; one 424 type interpreter; one 365 type collator; two 313 type high speed sorters; one 208 type mark-sensing, end-printing, reproducer; two 029 type automatic punches; and two 129 type automatic verifiers. The existing tabulator, sorters, interpreter and one reproducer, which are on hire from the same company, will be returned. It is expected that the new equipment will be delivered before the end of 1963.

189. Additional staff was approved for the machine room during the year, comprising one senior machine operator, one junior machine operator, one punch room supervisor and four punch operators. Two officers attended local courses on the new equipment and two officers will attend courses in Britain.

190. The total number of cards used during the year was just over one million.

RETAIL PRICE INDEX

191. The retail price index was calculated and published monthly. The figures for the end of each quarter, on the basis of March 1947 100 were as follows:

June

Sept.

Dec. March

1962

1962

1962

1963

Food

125

127

128

131

Rent

119

119

119

119

Clothing, including footwear

98

97

98

97

Fuel

97

96

94

103

Electric light

59

59

59

58

Cleaning

92

91

91

91

Education

140

140

140

140

Tobacco and cigarettes

124

124

124

124

Doctor and medicines

103

103

103

103

Fares

100

100

100

100

Household equipment

115

115

116

116

Hairdressing

118

118

118

117

Newspapers and stationery

153

153

153

153

Shoe repairs

86

86

86

85

...

Rates

100

100

100

100

General Retail Price Index

119

119

120

122

...

192. The average for the year of the general retail price index was 120, a decline of two points from the average for the previous year. There was a peak of 124 in February 1963 due to the customary increased demand for foodstuffs during the Chinese New Year festivities, as well as to the slow rehabilitation of New Territories farms after typhoon 'Wanda'. The lowest index during the period was 118, and the movements of the index were normal.

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ASSISTANCE TO OTHER DEPARTMENTS

193. Six officers of the Royal Observatory spent two days in the machine room on a familiarization exercise covering punching, verifying and sorting routines. Apart from the preparation of the Colony's monthly trade statistics, statistical matters dealt with in the machine room included industrial and occupational accident statistics for the Labour Department, police traffic accidents and serious crime statistics, death statistics, the Urban Services Department's market rent schedules and market stall ledgers, analysis of samples of 1960-62 dental records, analysis of the 1962 dental fluoridation survey, and reproduction of ship log cards for the Royal Observatory. The machines were fully occupied with the above and ad hoc exercises had to be reduced to the minimum.

194. Apart from work done in the machine room for other depart- ments, and from statistical advice in general, the branch prepared statistical graphs, diagrams, and tables for the Post Office, Marine Department and the Fire Services Department; the monthly statistical supplement to the Government Gazette, and regular returns to the United Nations and its specialized agencies.

BUDGETARY SURVEY

195. The decision of Government to establish a new consumer price index led to the formation of a Budgetary Survey Unit within the department to carry out a survey with the object of establishing the expenditure pattern of households and thereby the weighting basis for the items in the index. The survey, which is intended to cover 3,000 households, will continue over 1963 and 1964.

196. By the end of 1962-63 much initial planning had been under- taken including the preparation of the sampling plan, of schedules and forms, and of training manuals for the interviewing officers.

NATIONAL INCOME SURVEY

197. A two-year Research Fellowship was established in the Univer- sity of Hong Kong, with funds provided by Government, in order that a National Income Survey of Hong Kong might be undertaken. The Statistical Branch has given assistance in several ways to the appointed Fellow in the preliminary investigations, discussions, and calculations that have taken place so far.

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VIII. OVERSEAS OFFICES

THE LONDON OFFICE

General

198. The year under review has been momentous in the history of the London Office. It was marked by two major developments-the removal of the office from Grand Buildings, Trafalgar Square, to larger premises at 54 Pall Mall, and the preoccupation, during much of the year, with Hong Kong's role in the negotiations for Britain's entry into the European Economic Community.

199. The first of these developments made its influence felt through- out the year. It involved, as well as the physical move itself and the furnishing of the new building, frequent meetings with architects and designers, re-organization of office procedures, and appointment of additional staff. Some of this planning and re-organization was still proceeding at the end of the year.

200. These two major events, which are referred to in more detail below, highlighted a year that was outstanding also for a marked expansion of trade promotion and public relations activities.

Staff

201. At the end of the year the office staff consisted of the Director, Assistant Director, Principal Information Officer, a Higher Executive Officer, seven Clerical Officers, and two Office Juniors.

202. The Director spent three weeks in the Colony during January on a duty visit.

Trade Relations

203. The year was marked by a number of visits by senior Govern- ment officers and leading members of the Hong Kong community in connexion with trade talks, usually concerned with the negotiations for Britain's entry into the European Common Market.

204. The former Director of Commerce and Industry, Mr. H. A. ANGUS, C.B.E., attended talks at the Board of Trade and the Colonial Office on the cotton textile situation during a brief visit to London on his way back to the Colony from Washington.

205. The Financial Secretary, the Hon. J. J. COWPERTHWAITE, O.B.E., was in London several times during the year for talks with the Colonial Office and the Board of Trade, and for the meeting of the Commonwealth Prime Ministers' Conference.

41

206. The Director of Commerce and Industry, the Hon. D. R. HOLMES, C.B.E., M.C., E.D., made his first call at the new London Office during his visit to Europe for international cotton textile trade talks in Geneva. Later in the year, he visited London again on his return from Oslo.

207. Seven Unofficial members of the Executive and Legislative Councils visited London for talks on the Common Market with the Secretary of State for the Colonies and the Lord Privy Seal.

208. Mr. Elmer J. S. Tsu represented the Cotton Advisory Board at talks with the Board of Trade and the British Cotton Board on the operation of supplementary quotas generally and the establishment of a formula for supplementary quotas for cotton yarn.

209. The Director of the London Office attended many of the meet- ings arranged for these visitors, and the full facilities of the London Office were always at their disposal.

210. The office answered inquiries from members of both Houses of Parliament concerning the background of the Colony's problems in relation to Britain's proposed entry into the European Common Market.

offi Office Accommodation

211. The move to new premises at 54 Pall Mall has been referred to above. The new London Office occupies its own building, which consists of a storage basement; a reception lobby, exhibition area, conference room and trade inquiry offices on the ground floor; informa- tion and public relations section on the first floor; Director's and Assist- ant Director's offices on the second floor; general office on the third floor; and a self-contained flat, for visiting senior officers, on the fourth floor.

212. The building fronts on to one of London's busiest and most famous streets and has a window display featuring the Colony's achieve-

ments.

213. The year began with negotiations for the acquisition of the lease of 54 Pall Mall and ended with the planning of a permanent exhibition of Hong Kong products to be sited on the ground floor. The months between were occupied with planning the conversion of the building, to enable office activities to be extended in many directions, and the re-organization of office procedures to cope with these addi- tional commitments.

42

214. The actual move from Grand Buildings and, a short time later, the complete re-equipment of the office with furniture and furnishings shipped from the Colony, were carried out with the minimum interrup- tion of normal work.

215. Despite the many frustrations inherent in any upheaval of this kind, working conditions in the new premises are immeasurably better than in Grand Buildings.

Trade Promotion

216. This section of the last Annual Report began: 'Despite many other preoccupations in an unusually crowded year, the office never lost sight of the fact that one of its most important functions is to introduce new business to Hong Kong'. This dictum applied with even greater force in the year under review.

217. Trade introductions made during the year totalled over 2,500, compared with rather fewer than 1,600 in the previous year. This increase was only partly accounted for by the institution of a more accurate method of recording inquiries received by letter, telephone and personal visits; most of the increase reflects a genuine expansion of interest in trade with Hong Kong and a steadily increasing awareness in business circles of the functions of the London Office.

218. As in the previous year, trade introductions covered practically the entire range of the Colony's products, and the office was once again able to introduce new lines for possible manufacture.

219. It has become routine to say that Commonwealth Preference matters form an important part of London Office activities. Neverthe- less, it is upon the principle of Commonwealth Preference that trade between Hong Kong and Britain has developed, and the number of letters written by H.M. Customs and Excise to Hong Kong accountants about claims to preference is a barometer indicating the state of that trade. During the year 3,495 such letters were written (compared with 2,186 in the previous year) and, as in the past, these were analysed and added to the growing volume of reference material on Commonwealth Preference matters at the disposal of the London Office.

220. The relatively small, but important, re-export trade in Hong Kong goods from Britain was maintained at almost exactly the previous year's level. In this connexion the office issued 113 letters of support.

221. The distribution of Hong Kong trade literature is an important part of the trade promotion activities of the London Office. One thousand five hundred copies of the 1962 C.I.F. Directory were

43

circulated to H.M. Government Departments, foreign Embassies and Legations, Commonwealth High Commissions and Government Offices, Members of Parliament, trade and professional associations, etc. Wide distribution among the newspaper and trade press resulted in a gratify- ing number of reviews which, in turn, brought in many requests for copies from business firms.

222. The Hong Kong Trade Bulletin enhanced its reputation. Copies were sent to regular subscribers, and no opportunity was missed to bring it to the attention of firms making their first contact with the Colony. Evidence of the esteem in which this publication is held by British importers is the fact that, despite the cost, several airmail sub- scriptions were opened during the year. Many requests by companies for insertions in the trade inquiry section of the Bulletin were passed on to the department.

223. The Office investigated 19 claims by British importers against Hong Kong suppliers, and four by Hong Kong suppliers against importers in Britain. With the assistance of the department, satisfactory solutions were achieved.

224. The Director of the Office attended 12 meetings of the Hong Kong Association, and was among the hosts at luncheons given by the Association for Mr. Reginald MAUDLING and Mr. Duncan SANDYS, the former and present Secretaries of State for the Colonies, respectively.

225. He addressed a meeting of the English Speaking Union on the growth and problems of Hong Kong industry, and was an honorary delegate to the London Congress of the Commonwealth Chambers of Commerce. He was also a guest at a luncheon given by the Association of British Pharmaceutical Industries.

226. Many inquiries concerning the new quota system for cotton garment exports to Britain were dealt with. Copies of the Department's announcements on this subject were sent to all interested importers.

227. New export controls on finished cotton piecegoods gave rise to many inquiries by British importers. Copies of the department's Notices to Exporters on the 1963 Cotton Textile Quotas were sent to interested parties.

Visitors

--

228. There was a marked increase in the number of visitors who called at the London Office 1,983, compared with 1,525 in the previous year. This was due partly to having new premises which are much more easily recognizable and accessible to members of the public.

44

229. It was with pleasure that the Office was able to welcome His Excellency the Governor and Lady Black on their first visit to the new building.

Trade Fairs and Exhibitions

230. The Office had an unusually heavy programme of trade fairs and similar exhibitions during the year, the two principal events being the Nigerian International Trade Fair at Lagos, and the 40th Ideal Home Exhibition organized by the Daily Mail in London.

231. Primary responsibility for the arrangements at Lagos, both in advance and during the fair, rested outside the Colony with the Assist- ant Director of the London Office. The information section was respon- sible for all arrangements at the London end for the Colony's appearance at the Ideal Home Exhibition: this was the first occasion on which the section undertook such a task. Further details of these events will be found in Chapter IV.

232. During the year, preparations were made for the Colony's participation in trade fairs at Frankfurt, Milan, and Berlin, and in the London International Engineering Exhibition.

Hong Kong House

233. The Office continued, as in previous years, to supervise the administration of Hong Kong House. Five meetings of the Board of Governors and four meetings of the Executive were held during the year. There were also frequent meetings between the Director and the Warden on routine matters connected with Hong Kong House.

Public Relations

234. The information and public relations section greatly increased the scope of its work during the year under review. The move to new premises made possible a number of developments which will become permanent features of its activities. These include responsibility for regular window displays, a photographic and 'visual aids' exhibition, and a permanent display of Hong Kong products. These duties were carried out with scarcely any interruption of normal information and public relations services.

235. By the end of the year, a new post for a Higher Executive Officer, to act as assistant to the Information Officer, had been filled, to take effect from 1st May, 1963. With the re-organization of office procedure, the staff of the information and public relations section will

45

consist of the Principal Information Officer, Higher Executive Officer, two Clerical Officers (a shorthand-typist and a library assistant), and an office junior/trainee.

236. Press releases issued during the year totalled 167. Once again, by careful selection of news items from the Daily Information Bulletin and planned distribution to newspapers and trade journals, this aspect of public relations activities met with notable success, as measured by the number of press releases which achieved publication. It is estimated that between 15 and 20 per cent of all but the major international news items about Hong Kong appearing in British newspapers and trade journals originate from the London Office.

237. As well as issuing press releases, the London Office also distributed a large volume of photographic and editorial material prepared by the Information Services Department, and this resulted in the publication of a number of prominently displayed articles in leading magazines and trade journals.

238. A scheme was initiated during the year to invite representatives of leading British newspapers and magazines to make brief visits to the Colony as guests of the Government for the purpose of collecting material for articles.

239. There was a further increase in the number of inquiries, by letter and personal visits, from people seeking information about the Colony. Many of these inquiries came from people seeking jobs in Hong Kong, and a large proportion from people about to take up employment in the Colony who wished to know more about living conditions, etc.

240. It is gratifying to note a further significant increase in the number of requests for information received from teachers and school children. These inquiries alone are now running at the rate of ap- proximately 600 a year.

241. The Office is in a better position than ever before to deal with inquiries from the general public and schools. It now holds substantial stocks of literature, produced in the Colony, on a wide variety of subjects, films and slides available on loan, and printed material designed to answer 'routine' questions. In fact, nearly all inquiries in this field can now be dealt with by the supply of appropriate literature.

242. Limitations on space at the former premises precluded the setting up of a reference library, but in the better conditions of 54 Pall Mall, an efficient library began to take shape during the year. The

46

Office is now in a position to answer practically any question about Hong Kong and its affairs; only very rarely has it been necessary to ask other departments for supplementary information.

243. The Information Officer made tape recordings of personal messages to their families from Hong Kong nurses and students for 10 further programmes in the Radio Hong Kong monthly series 'Students' Favourites'. Several interviews were recorded for Radio Hong Kong news-magazine programmes.

244. Many questions from national newspapers about the influx of illegal immigrants from China in May 1962 were dealt with, and the Director took part in an interview on this subject in the B.B.C. Home Service's 'Background to the News' programme.

245. Assistance was given to the B.B.C. in the preparation of a Schools Television programme about Hong Kong, transmitted in June 1962.

246. In collaboration with other Government departments, the Hong Kong Tourist Association, British Trades Alphabet Limited and British Overseas Airways Corporation, the Office arranged for the prize-winners of the British Trades Alphabet National Essay Competition—a school- boy and a schoolgirl to visit the Colony.

247. The Information Officer addressed a Press Conference called by the Standing Conference of British Organizations for Aid to Refugees, under the chairmanship of Viscount Astor, to report on the allocation of funds raised in the United Kingdom during World Refugee Year. His description of the work done by the Hong Kong Government to resettle and integrate refugees was reported in the national and provincial daily press.

248. The Information Officer accompanied the Director of In- formation Services to a number of meetings in London concerning the Colony's public relations plans. Meeting were held with departmental heads of the Colonial Office, Central Office of Information, B.B.C., Independent Television, commercial newsreels, photographic agencies, B.O.A.C., etc.

249. The Information Officer represented the Hong Kong Govern- ment at a meeting at Buckingham Palace between Sir John WILSON, Keeper of the Royal Philatelic Collection, and Colonel F. W. WEBB, President of the Hong Kong Study Circle, in connexion with the loan of specimens from the Queen's collection for the Centenary Stamp

47

Exhibition in Hong Kong. Later, arrangements were made for Colonel WEBB to attend the Exhibition as a guest of the Hong Kong Government.

250. Close liaison was maintained throughout the year with the Colonial Office and the Central Office of Information on matters con- cerning Hong Kong public relations, and with sound broadcasting and television organizations, newspapers and magazines, on the dissemina- tion of news items and features about Hong Kong affairs. Co-operation between the Office and the British public relations consultants of the Federation of Hong Kong Industries and the Hong Kong General Chamber of Commerce was positive and constant.

Other Office Activities

251. A procedure was instituted during the year to bring vacancies in the Hong Kong Civil Service to the notice of students from the Colony on courses in Britain, and to interview candidates in London.

252. The Director of the London Office was among the guests at the opening of the new Commonwealth Institute by Her Majesty the Queen. He escorted Her Majesty and the Duke of Edinburgh on a tour of the Hong Kong Court.

General

THE SYDNEY OFFICE

253. The Trade Representative made four inter-state visits, two to Melbourne, one to Brisbane and one to Hobart, attended the Annual Conference of the Associated Chambers of Commerce of Australia at Hobart, and the Melbourne International Trade Fair. He also paid a two-week visit to Hong Kong on duty and had a number of meetings with representatives of trade and industrial associations, individual businessmen and Government departments. The Trade Representative kept the department advised on Australian Government importing policy, Tariff Board and Customs developments as they affected trade with Hong Kong. He maintained liaison with the Sydney office of the Hong Kong Tourist Association which opened in August, and in conjunction with that office, arranged for a window display in the centre of Sydney featuring Hong Kong for a period of three weeks.

Trade Inquiries, Commercial Introductions, Etc.

254. During the year under review the Australian economy showed a steady upward trend. The recovery from the recession of the previous year enabled Australian importers, wholesalers and retailers to resume

48

interest in Hong Kong as a source of supply. Many of these importers, however, have had little or no previous dealings with the Colony and much of the work of the representative and his staff has been concerned with encouraging such inquirers and providing them with information, advice and assistance to allow them to develop into new customers for Hong Kong products, or to expand the volume and range of their present purchases from the Colony. Many of them decided to make their first business visit to Hong Kong, and in co-operation with the department, the Sydney Office endeavoured to make their stay in the Colony as useful and instructive as possible. All trade visitors to the office were interviewed personally by the representative. The office received 505 trade inquiries covering a wide range of products and effected 580 commercial introductions. Assistance was given to 115 Australian businessmen intending to visit the Colony and 71 letters of introduction were issued. Thirty-seven complaints against Hong Kong suppliers and one against an Australian firm were dealt with with a view to reaching amicable settlement.

Publications and Public Relations

255. The Commerce, Industry and Finance Directory and the Trade Bulletin continued to be in considerable demand in Australia. These and other publications and literature were issued to trade and general inquirers as appropriate. The office added 135 names to the publications mailing list and passed 26 trade inquiries to the department for publica- tion in the Trade Bulletin. At the end of the year 990 Australian addressees were receiving the Trade Bulletin. As opportunity offered talks on Hong Kong were given to associations and organizations, usually combined with the screening of a Hong Kong film. Films were also issued on a number of occasions for showing to private groups. There is a wide and topical interest in Hong Kong throughout Australia and many requests were received for assistance in mounting Hong Kong displays. Where practicable literature, posters, films, slides and other publicity media were issued and on some occasions sample products loaned.

General Inquiries

256. As the existence of the Sydney Office becomes better known, the number of general inquiries (i.e. other than those concerning trade or tourism) increases. The office dealt with 1,097 inquiries of such a nature, including numerous requests for information from persons seek- ing employment in Hong Kong.

49

Staff

257. The staff consisted of the Trade Representative, his secretary, one stenographer/clerk and one junior stenographer/clerk.

IX. CERTIFICATION BRANCH

GENERAL

258. The issue of all types of certificates of origin continued under strict administrative and physical checking procedures designed to ensure a high standard of reliability. The branch issued 404,083 certifi- cates compared with 367,706 in the previous year, an increase of 9.89%. The declared value in money terms of goods certified was $2,263,657,032, representing 66.32% of the value of all Hong Kong products shipped during the year. This total, when compared with $1,962,411,335 for the previous year, shows an increase of 15.35%.

REGISTRATION OF FACTORIES

259. The number of factories registered with the department for the issue of certificates up to 31st March, 1963 was 4,585, an increase of 244, or 5.62% over last year.

CERTIFICATES ISSUED, INSPECTIONS

260. Table 8 shows the number of the various types of certificates issued and the declared value of goods certified together with corre- sponding figures for the previous year.

261. The number of factory inspections carried out during the year was 13,074, a decrease of 7,955. The Kowloon Inspection Control Office situated in the Kowloon Wharf & Godown Company's premises con- tinued as an effective centre for certain specific classes of goods.

262. Comparative figures of field inspections carried out during the last few years are as follows:

1959-60

1960-61

1961-62

1962-63

58,461

38,262

21,029

13,074

263. The reduction in the number of yearly inspections is largely accounted for by the opening of the Kowloon Inspection Control on 1st December 1960, which transferred responsibility for certain types

50

of inspections from uniformed to administrative staff. Inspections carried out at the control, which amount to over 10,000 each year, are not included in the above record of field inspections but are shown at paragraph 277.

CHANGES IN CERTIFICATION REQUIREMENTS OF VARIOUS TERRITORIES

264. There were no major changes in the requirements of overseas territories.

265. In August 1962 the Italian Trade Commissioner in Hong Kong advised that all certificates of origin for Hong Kong products exported to Italy must be validated by his office before being acceptable to the Italian Customs authorities.

Standard Certificates of Origin

266. Standard certificates of origin issued during the year totalled 136,862, an increase of 8.96% over the preceding year's total. The declared value of goods in money terms covered by the certificates amounted to $863,424,135, an increase of 8.45% compared with last year's figure.

Commonwealth Preference Certificates

267. Customs authorities in all Commonwealth countries which grant preferential rates of duty for Hong Kong products 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.

268. The department continued to ensure uniformity of practice among approved accountants in the preparation of cost statements which, together with specific raw material undertakings given by manu- facturers, form the basis of all claims to preference. In addition to guidance on general principles and practice, a number of circulars dealing with individual territorial requirements were also issued to accountants.

269. The number of Commonwealth Preference certificates, including Forms E.120, E/COM.113, D.119, and D/COM.112 issued during the year was 105,693, an increase of 6.66% over the total for the preceding year. In order to reinforce supervision of factories exporting to Britain under claim to preference, a new procedure was introduced in March 1963, whereby all factory undertakings specifying use of Commonwealth

51origin raw materials for preference purposes and formerly given ex- clusively to H.M. Commissioners for Customs and Excise, London, are also required to be given in legally acceptable form to the department.

Comprehensive Certificates of Origin

270. No new commodity was added to the list of goods certificable under comprehensive certification procedures during the year under review.

271. However, a revised procedure for textile fabrics handpainted in Chinese type designs was embodied in current procedure for hand- painted wallpaper and was approved in July 1962. In October, ten other procedures were revised and approved.

272. The Foreign Assets Control Bureau of the U.S. Treasury Department agreed in January 1963 that fabrics and non-Chinese style garments manufactured from material containing less than 50% cotton do not require comprehensive certification provided the majority fibre contained in the mixture is non-presumptive in its own right.

273. The number of certificates issued followed the pattern of the preceding year. There were again more commercial, tourist, gift plan and mail order certificates but fewer commercial sample certificates. The total number of certificates issued was 161,528 representing an increase of 12.95% over last year. A comparison of the value of the goods exported under these certificates however shows a decrease of 13.46% to $456 million.

Miscellaneous Certificates

274. Certificates of processing for goods which do not qualify under the rules for standard certificates of origin continued to be the most widely used of the miscellaneous certificates issued by the department. General certificates again proved useful to exporters doing business with countries operating stringent foreign exchange licensing regulations.

275. The Branch verifies the signatures of the Superintendent of Gardens on phytosanitary certificates, the Director of Agriculture and Forestry and the Commissioner for Co-operative Development and Fisheries on certificates of origin for natural produce exported, and of certain medical practitioners on phytopathological hide and hair certificates.

ENFORCEMENT

276. During the year the Director suspended the registration of a number of factories as a result of investigations proving malpractice in

52

certification matters. In the more serious cases, the offenders were prosecuted. The heaviest single fine imposed amounted to $40,000.

KOWLOON INSPECTION CONTROL OFFICE

J

277. The Kowloon Inspection Control Office processed 13,890 con- signments of goods exported under comprehensive certificates of origin (an increase of 22.16% over the previous year) and 40 consignments of embroidered handkerchiefs and naperies exported under Commonwealth preference certificates and standard certificates of origin. From the beginning of 1963 the control assumed the additional responsibility of inspecting all shipments made under the high Hong Kong cost content scheme for cotton garments and other made-up items against samples previously lodged with the department. Consignments so routed through the control for prior inspection totalled 544 by the end of the year under review.

X. TEXTILES BRANCH

278. A Textiles Branch was established in the department during the year following further expansion in the range and complexity of textile controls. This expansion was the direct result of requests by several countries that Hong Kong exercise restraint on the export of certain categories of cotton textiles in accordance with the terms of the G.A.T.T. Short and Long-term Arrangements regarding Inter- national Trade in Cotton Textiles. The Cotton Undertaking given by Hong Kong to Britain was also broadened to include textile items not previously restricted and this resulted in additional work and responsi- bilities for the department.

THE G.A.T.T. SHORT-TERM ARRANGEMENT REGARDING INTERNATIONAL

TRADE IN COTTON TEXTILES

279. Seventeen nations subscribed to the Short-Term Arrangement following a conference held in Geneva during July 1961, as an interim instrument for the regulation of the cotton textile trade between parti- cipating countries, pending a long term solution to the problem of disorderly marketing and consequent market disruption. The Arrange- ment was valid for twelve months from 1st October, 1961 to 30th September, 1962.

280. The Arrangement, which aimed at the orderly marketing of cotton textiles between participating countries, provided for an importing

53

country whose domestic market was being disrupted, or was in danger of being disrupted, by rapidly increasing imports of specific categories of cotton textiles, to request an exporting country to restrain further exports of these categories. Minimum levels at which restraint could be requested were laid down by reference to previous exports. The Arrangement enjoined a thirty-day period of consultation between the Governments concerned and, if agreement on restraint could not be reached during that period, the importing country could decline to accept imports at a level higher than that which it had requested. In critical circumstances, unilateral action could be taken by an importing country while the request was under discussion.

THE G.A.T.T. LONG-TERM ARRANGEMENT REGARDING INTERNATIONAL

TRADE IN COTTON TEXTILES

281. In February 1962 the Cotton Textiles Committee of the G.A.T.T. drew up the first draft of a Long-Term Arrangement which was designed to follow immediately upon the Short-Term Arrangement and to provide for the regulation of trade in cotton textiles between participating countries for a period of five years beginning 1st October, 1962.

282. Britain acceded to the Long-Term Arrangement on Hong Kong's behalf in September 1962.

283. Under the provisions of this Arrangement, the Governments of the United States of America, Canada, Norway, and the Federal Re- public of Germany requested Hong Kong to restrain exports to their respective countries in a number of cotton textile categories. The Hong Kong Government, after negotiations with the countries concerned, agreed to exercise restraint in the affected categories. In each case, the responsibility for administering the controls that became necessary was undertaken by the department.

EXPORT OF COTTON MANUFACTURES TO BRITAIN

284. In May 1962, after consultation with the Cotton Advisory Board, Hong Kong offered to renew the undertaking given to the British Cotton Board, which had first become effective in 1959, and to limit the export of cotton textiles to Britain to an annual equivalent of 185 million square yards for a period of three years beginning 1st January, 1963. An offer was also made to limit for the first time export of cotton yarn to Britain to an annual rate of 6.3 million lbs. and to

54

introduce the control on yarn exports during 1962. Both these offers were subject to India and Pakistan giving similar undertakings, which they eventually did. Although the undertaking was not given under the terms of the Long-Term Arrangement, the G.A.T.T. Committee dealing with cotton textiles and with the Arrangement was informed of its contents.

285. In August 1962, cotton made-up exports to Britain were brought under control for the first time. The quantity initially allocated for exports of made-ups during 1962 was 60 million square yards, but by August this proved to be insufficient. The reserve quota of 18 million square yards was then utilized and allocated under an Export Authorization system against contracts concluded before 21st August.

286. In November 1962, the department announced details of a scheme designed to promote the export of made-up articles with a high Hong Kong cost content. This scheme came into operation on 1st January, 1963, and permitted quota yardage to be allocated for the export of made-ups which gave the best financial return to Hong Kong for each square yard of quota utilized. The scheme also stimulated the production of better quality cotton goods. Approximately 9 million square yards of quota, from a reserve of 20 million square yards set aside for the first year of operation of this scheme, were allocated by April 1963.

EXPORT OF COTTON MANUFACTURES TO THE

UNITED STATES OF AMERICA

287. During the currency of the Geneva Short-Term Arrangement which expired on 30th September, 1962, the United States Government had requested the Hong Kong Government to exercise restraint on exports of thirty categories of cotton textiles. Exports in the majority of these categories had to be suspended abruptly as the amounts shipped had already exceeded the levels at which restraint was requested.

288. The local textile industry suffered serious disruption as a result of the immediacy of some of these requests, particularly when no arrangement could subsequently be negotiated with the United States. authorities to take account of goods under production or ready for ship- ment in Hong Kong at the time the requests were made. Some Hong Kong textiles were also detained at United States ports for lengthy periods causing financial hardship to the United States importers. There is little doubt that, consequent upon the United States action in restrain- ing imports of all the categories of cotton textiles which were important

55

to Hong Kong's trade, confidence in the future of this market declined and continued development of various sectors of the industry was inhibited.

289. For the First year of the Geneva Long-Term Arrangement (i.e. 1st October, 1962 - 30th September, 1963) Hong Kong negotiated an understanding with the United States whereby the thirty categories already restricted under the Short-Term Arrangement should continue to be restrained at the same levels for a further twelve months. To allow a degree of planning and forward ordering by the trade, most of these restricted categories were made subject to quota control. Quotas were issued to shippers on a past performance basis. The remaining restrained categories were placed under an export authorization system whereby the holder of an authorization was assured that he would be permitted to export the goods covered by the authorization within its period of validity, normally three calendar months from the date of issue. This system was made possible following the agreement of the United States authorities that no goods so authorized for export would be refused import into the United States. In return for this assurance the department kept the American authorities informed at regular inter- vals of the quantities of goods covered by export authorizations and licensed for export; the information so provided covered not only prod- ucts already subject to restraint but also the remaining categories in respect of which restraint had not yet been requested.

290. Following the agreement by Hong Kong to restrain exports in the thirty affected categories, further discussions took place at the request of the United States Government with a view to subjecting exports of certain categories of textiles to spacing arrangements. There is no provision for spacing in the Geneva Arrangement but the Hong Kong Government, having considered the American request and the grounds upon which it was put forward, voluntarily required the holders of quotas in the great majority of restrained categories to regulate their exports in such a way as to avoid undue concentration in any particular period.

EXPORT OF COTTON MANUFACTURES TO CANADA

291. Under the Short-Term Arrangement, the Canadian Govern- ment had requested Hong Kong to restrain exports of four categories of cotton manufactures. Where possible the Hong Kong Government regulated further exports up to the restraint levels requested in these categories by means of a quota control.

56

MA. INH DEPARTMENT LIBRARY

292. Hong Kong applied restraint to exports in these four categories at the beginning of the first year of the Long-Term Arrangement, i.e. 1st October, 1962, to provide continuity in production and marketing. Since these categories were already under quota control, eligible shippers were again allocated quotas on a past performance basis. The restraint levels applicable to the first year of the Long-Term Arrangement were subsequently agreed with the Canadian Government.

EXPORT OF COTTON TEXTILES TO THE

FEDERAL REPUBLIC OF GERMANY

293. The Government of the Federal Republic of Germany, under the provisions of the Long-Term Arrangement, requested Hong Kong to exercise restraint on the export of woven cotton shirts to West Germany during the first year of the Long-Term Arrangement, i.e. 1st October, 1962 - 30th September, 1963.

294. The restraint level proposed by the West German authorities was such that it was not necessary to introduce quota controls. Instead, in order to promote orderly planning and marketing and to provide shippers with contractual security, the export authorization system was introduced for these exports.

EXPORT OF COTTON MANUFACTURES TO NORWAY

295. After discussion in Hong Kong during October 1962 Hong Kong concluded a bilateral agreement with the Norwegian Government, under the provisions of Article 4 of the Long-Term Arrangement, to restrain exports of cotton woven nightwear and shirts for work, sport and leisure purposes to agreed levels for a five year period ending 30th September 1967. The agreement provides for a measure of growth in the second and subsequent years, and for a fixed percentage of growth under Annex B of the Long-Term Arrangement for any other categories of cotton textiles in respect of which Norway may subsequently seek restraint.

296. The department took steps to protect contractual commitments already entered into between Hong Kong shippers and Norwegian buyers at the time of the signing of the agreement. Subsequent exports were controlled by means of export authorizations issued for the balances available for export until 30th September 1963.

297. Throughout the events and negotiations reported in this chapter the Cotton Advisory Board played a most valuable part. The advice which it tendered was consistently mature, realistic and responsible.

57

298.

UNITED STATES COTTON AGREEMENT WITH INDONESIA

Under the United States Public Law 480, the United States again made surplus cotton available to Indonesia for processing in third countries, including Hong Kong. By virtue of this arrangement, an agreement was entered into between Hong Kong and Indonesia in July 1962, under which Hong Kong spinners contracted to supply approxi- mately 7 million lbs. of cotton yarn, worth about $21 million f.o.b. Hong Kong, to Indonesia. Payment was received in the form of raw cotton for 65% of the f.o.b. value of the yarn, the remaining 35% being financed in Hong Kong dollars. Delivery of the full contracted quantity was completed by the end of the year under review.

XI. TRADE LICENSING AND SUPPLIES BRANCH

GENERAL

299. The Trade Licensing and the Supplies Branches were merged during the year, while a new Textile Branch took over the export licensing of cotton textiles to destinations for which quantitative export controls are in force. There were no changes in import or export licensing regulations.

IMPORT LICENSING

300. Certain highly strategic goods which are required for local industrial purposes remained subject to import and end use control. Documentary evidence as to the end use of these materials was required from importers and frequent inspections were carried out on factory premises where such materials were used.

301. During the year 33 (69) delivery verification certificates were issued to confirm the arrival in Hong Kong of highly strategic goods. 302. The number of import licences issued for all purposes- strategic goods, reserved commodities (e.g. rice) and currency and health regulations during the year was 15,851 (17,032).

EXPORT LICENSING

303. The export of highly strategic goods requires to be supported by delivery verification certificates issued by the authorities of the importing country and 537 (128) such certificates were supplied by exporters during the year.

58

304. The main purpose of the licensing of certain exports is the control of foreign exchange. The number of licences issued during the year was 390,855 (336,625).

RESERVED COMMODITIES

Rice

305.

Government reviewed the rice control scheme at the end of 1962 and decided that the existing arrangements should continue with- out modification during 1963. The basic quarterly import quota for 1963 remained at 88,000 tons, and the stock-holding commitments at 44,000 tons.

306. Total rice imports during the year were 336,351 tons (370,380) as follows:

1961-62

1962-63

Source

M/tons

%

M/tons

%

Thailand

223,010

60.2

179,924

53.5

China

84,221

22.7

85,371

25.4

South Vietnam

6,102

1.7

22,803

6.8

Cambodia

41,000

11.1

17,844

5.3

Burma

4,289

1.2

12,293

3.6

Pakistan

8,202

2.2

7,635

2.3

North Vietnam

1,632

0.4

7,271

2.2

Australia

1,788

0.5

2,566

0.8

South Korea

524

0.1

Timor

136

120

370,380

100.0

336,351

100.0

307. There were two reasons for this smaller volume of imports: first, fewer optional increases were offered in 1962-63, and secondly, imports in advance of quota requirements fell from 40,000 to less than 7,000 tons. Local wholesale prices rose sharply at the beginning of the year in sympathy with the world price and administrative action was taken immediately to discourage speculation on a rising market. The conditions governing the issue of quotas, particularly that requiring wholesalers to make payment for their purchases within one month, were strictly enforced. Supplies to consumers remained adequate.

Frozen Meat

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

59

309. Total imports of frozen meat in 1962-63 were 8,837 tons (16,025):

Total

Source

Beef

Mutton Pork Offals (L/tons)

%

China

210

124

2,398

515

3,247

36.7

Australia

1,000

355

89

392

1,836

20.8

Denmark

7

1,164

492

1,663

18.8

U.S.A.

1

43

729

773

8.7

New Zealand

98

166

131

150

545

6.2

Argentina

136

10

67

111

324

3.7

Holland

49

5

11

94

159

1.8

Sweden

82

34

116

1.3

Africa

74

|

13

87

1.0

Japan

5

30

35

0.4

South Korea

25

25

United Kingdom

6

13

19

Canada

5

5

0.1

208

0.3

0.2

Brazil

ليا

3

3

1,582

667 4,010 2,578 8,837

100.0

310. Local consumption of both frozen and fresh meat during the past three years has been as follows:

Fresh meat

Frozen meat

1960-61

1961-62

1962-63

L/tons

L/tons

L/tons

64,842

59,265

83,343

12,857

14,850

10,460

77,699

74,115

93,803

311. During 1963 consumption of fresh meat increased considerably while the popularity of frozen meat declined. The increase in fresh meat consumption was mainly due to the increase in livestock imports from China.

Coal

312. Total imports for 1962-63 amounted to 197,936 tons (235,341):

Source

China

...

North Vietnam

Taiwan

Japan

Australia

1961-62

1962-63

L/tons

%

L/tons

%

203,172

86.3

168,866

85.3

14,072

6.0

18,223

9.2

7,720

3.3

7,640

3.9

3,200

1.6

10,377

4.4

7

235,341

100.0

197,936

100.0

60

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

Firewood

314. Firewood also remained on the 'reserved commodities' list. Total imports of firewood during the year 1962-63 were 74,725 tons (107,718) as follows:

Government

Commercial

Total

Source

Imports

Imports

Imports

%

L/tons

L/tons

L/tons

North Borneo

7,221

52,151

59,372

79.4

China

8,862

8,862

11.9

Malaya

5,198

5,198

7.0

North Vietnam

1.293

1,293

1.7

7,221

67,504

74,725 100.0

315. The 30% decline in imports can be largely accounted for by a further switch in favour of kerosene and other fuels for cooking and heating purposes. During 1962-63, 9,174 tons of Government firewood were sold at an average price of $4.31 per picul as compared with 11,891 long tons at $4.69 per picul in the previous year.

Foodstuffs

316. Reserve stocks of soya beans were run down during the year while stocks of certain other essential foodstuffs continued to be maintained.

ACCOUNTS

317. Net receipts on the maintenance and turnover of stock-piles for the year were $3,488,426.08, being the difference between the proceeds of sales and the original cost of purchasing the supplies, of storage, etc. After revaluation of the stocks at 31st March, 1963, on the basis of the market value or original landed cost whichever was lower the net loss for the year was $1,288,485.46.

XII. DUTIABLE COMMODITIES BRANCH

GENERAL

318. The total net revenue from duties and licence fees during the financial year 1962-63 was $201,899,539 an increase of 13.7% over the previous financial year ($177,641,019). Revenue from each dutiable commodity exceeded that for previous years.

61

319. The main source of revenue continued to be tobacco and the duty collected reached a record figure of $84,993,497 an increase of 10.2% over the previous year ($77,122,064). A reduction with effect from 1st April 1962 in the rate of duty on Chinese prepared tobacco from $4.90 to $2.50 per pound resulted in a tenfold increase in duty receipts-achieved largely, it is believed, at the expense of the trade in smuggled tobacco-and made a valuable contribution to the increase in total revenue.

320. Revenue from hydrocarbon oils amounted to $58,320,916, an increase of 12.2% over the previous year's collection. Revenue from diesel oil used by road vehicles (excluding public omnibuses) increased by 74% and measures introduced in May 1962 to prevent abuse of the concessional arrangement for the taxing of diesel oil for marine and industrial uses at a lower rate, contributed to this improvement.

321. Excise revenue from intoxicating liquors totalled $51,604,171, an increase of 21.3% over 1961-62. All types of liquor yielded increased revenue, particularly brandy, the total excise on which amounted to $2,623,269, an increase of nearly 30% over the previous year.

322. Revenue from table waters rose by $881,452 or 21.4%, most of this being collected during the summer months. Locally manu- factured table waters again accounted for almost the whole of the revenue from this commodity.

REVENUE FROM DUTIES

323. Net revenue from duties in the year under review compared with 1961-62 is summarized in the following table:

Tobacco

Hydrocarbon oils

Liquor

Table waters

Methyl Alcohol

1961-62 $

1962-63

$

77,122,064

84,993,497

51,999,337

58,320,916

42,534,669

51,604,171

4,127,983

5,009,435

15,251

16,326

$175,799,304

$199,944,345

324. A further breakdown of these figures is given in Table 10 together with details of refunds of duty and drawback payments.

62

REVENUE FROM LICENCES

325. Net revenue from licences is shown in the following table:

1961-62 $

1962-63 $

Liquor

1,331,765

1,424,951

Tobacco

444,688

461,618

Hydrocarbon Oils

57,147

60,919

Table Waters

6,240

5,762

Ship and Harbour Vessel

1,211

1,366

Methyl Alcohol

664

578

$1,841,715

$1,955,194

326. Details of types of licences and revenue collected therefrom are given in Table 11.

XIII. PREVENTIVE SERVICE

GENERAL

327. The Preventive Service, in addition to its normal excise, anti- smuggling and trade control duties, participated in anti-illegal immigra- tion operations with the Police and other departments. All the six cruising launches were detached for these duties from September onwards.

328. The two harbour personnel-carrying launches continued to convey search and guard parties to and from ships in the harbour.

ORGANIZATION

329. The general organization of the Service remained the same throughout the year. Ten Revenue Sub-Inspectors, thirty-one Assistant Revenue Officers and five Women Assistant Revenue Officers were recruited during the year to bring the Service up to approved establish- ment and to replace losses.

TRAINING

330. The Training Section was reinforced by the posting of one Revenue Inspector to the training centre and during the year undertook the induction training of new recruits. Fifteen Assistant Revenue Officers attended a six weeks' refresher course.

63

331. One Senior Revenue Officer, eleven Revenue Officers, ninety- two Assistant Revenue Officers and two Women Revenue Officers attended English classes conducted by a Certificated Master on attach- ment from the Education Department.

332. Courses were undertaken through the Training Section at the Hong Kong Technical College. Ten Revenue Inspectors attended for a pre-course instruction class in chart-work and radar plotting. Three Revenue Inspectors attended a radar observer's course, whilst three others attended a class in the identification of textile material.

333. One local Revenue Inspector attended a course for officers of H.M. Customs and Excise held at their training centre, Customs House, London.

334.

Four Customs Officers from North Borneo were attached to the Training Section for field training with the Preventive Service.

STAFF AND DISCIPLINE

335. One Revenue Inspector, one Revenue Sub-Inspector, one Revenue Officer and one Woman Assistant Revenue Officer retired from the Service. One Revenue Inspector, one Revenue Sub-Inspector and one Assistant Revenue Officer transferred to other departments of Govern- ment. One Senior Revenue Inspector and three Revenue Sub-Inspectors were dismissed from the Service. Two Assistant Revenue Officers' services were terminated. Two Revenue Sub-Inspectors, one Revenue Officer, twelve Assistant Revenue Officers and five Women Assistant Revenue Officers resigned.

336. Two Revenue Inspectors, ten Revenue Sub-Inspectors, two Revenue Officers and twenty-two Assistant Revenue Officers received commendations or favourable entries on their Record of Service files.

337. Punishments were awarded as follows:

Admonishments

Reprimands

Severe Reprimands

Deferment of increments

Dismissals/Termination of Service

SEARCHES

1961-62

1962-63

3

7

2

5

2

6

338. Preventive Service officers searched 1,028 ocean-going vessels within the harbour, and launch crews searched 19,484 local craft for both dutiable commodities and illegal immigrants. Motor trading vessels

64

plying between Macau and Hong Kong were searched by mobile patrols and waterfront parties searched the Macau ferries daily. Over 645,000 passengers were processed by these parties.

339. Launches steamed a total of 13,365 hours and patrol vehicles logged a total of 199,343 miles, of which 91,284 were in the New Territories.

340. Passengers arriving in Hong Kong via the Lowu Border Sub- Station and passing through the baggage examination hall numbered 358,794. Preventive Service officers on duty at Hong Kong airport freight terminal examined 19,461 pieces of freight of which 1,111 pieces were detained for payment of duty upon their contents. They searched 981 incoming aircraft during the period.

DUTIABLE COMMODITIES

341. Owing to the increased number of discrepancies found during the checking of dutiable ships' stores in the latter part of last year, examinations of ships' stores were intensified during the year, resulting in a further increase in the quantity of European liquor seized. Villages on outlying islands and the more inaccessible mainland villages were not visited during the last half of the year for licensing purposes owing to launches being engaged elsewhere. The reduction in duty for Chinese prepared tobacco resulted in a considerable easing of the pressure on land patrols and seizures of Chinese prepared tobacco dropped to 4,656 lbs. (70,125) although elsewhere in this report it will be seen that receipts from payments on this commodity have increased.

342. This has enabled patrols to concentrate their attention on illicit distillation in the foothills of Kowloon and elsewhere in the New Territories. Action was made easier during the year by the particularly dry winter which caused many streams to dry up, thus concentrating illicit distillation along fewer water courses. This led also to the con- struction of larger stills and put the smaller operators out of business. The number of stills seized during the period was less than last year but they were mainly of a larger and more complex type.

NARCOTICS

343. A marked increase in the amount of narcotic drugs seized during the period is recorded in Table 12 of this report. With experience, search and guard parties have become more proficient and, during the latter part of 1962, smuggling syndicates started importing drugs con- cealed in cargoes. This swing to evade the attentions of search parties

65

resulted in cargo examination squads being formed. Notable among their successes was the seizure of 41 lbs. 6 ozs. of heroin and 51 lbs. 6.75 ozs. of morphine in a cargo of 690 sacks of chaff-ash from Bangkok, of 528 lbs. of opium in a consignment of 50 cases of washing soap from Singapore, and 156 lbs. of opium inside 122 cases of ground- nuts also from Singapore.

344. The largest seizure of morphine during the year was made by a ship search party on routine duty on a vessel from Bangkok when 44 blocks weighing 49 lbs. 4 ozs. of the notorious '999' brand of morphine hydro-chloride were found in the engine room ventilation shaft. Another party, after a search lasting eight hours, discovered 30 blocks of morphine and 268 lbs. of raw opium on a vessel which had arrived from North Borneo.

345. Narcotics guards were posted on 537 vessels which were suspect, or which had arrived from suspect ports, during their stay in Hong Kong.

346. Preventive Service officers on duty at Kai Tak airport found that a suitcase belonging to a passenger from Bangkok had been adapted to carry morphine blocks in its hollow sides and back. The cavity contained a total of 4 lbs. 13 ozs. of the drug. Three other important seizures were made at the airport involving 5 lbs. 94 ozs. of morphine brought in by passengers from Bangkok.

CERTIFICATES OF ORIGIN

347. The system of inspections brought into use last year has been maintained with satisfactory results. The total number of inspections carried out by officers of the Industry Section was 13,074.

MERCHANDISE MARKS ORDINANCE

348. The Preventive Service took action on 103 cases of infringe- ments of the Merchandise Marks Ordinance. Of these 19 ended in private prosecutions, 23 were settled out of court, 42 were prosecuted by the Preventive Service and 19 cases were not pursued. Articles seized included metal and wooden dies and blocks, wrappers and boxes, labels, hair cream, lubricating oil, sandals, shirts and various proprietary medicines.

BULLION

349. There was a slight increase in seizures of gold bars over last year but consignments from the Middle East were discontinued after a further seizure early in the year.

66

EMERGENCY (AGRICULTURAL POISONS) REGULATIONS

350. There were eight cases of infringement of these regulations resulting in 877 metal bottles of Folidol E605 being seized. The largest seizure was of 300 metal bottles which were found in the engine room of a vessel arriving in the Colony from Taiwan.

COURT ACTIONS

351. The number of court actions for the year was 2,465, an increase of 1,124 over the previous year. The number of persons summoned was 1,196 and 543 were arrested. Fines totalled $516,846, an increase of just over $0.25 million on the total for 1961-62. The following table illustrates trends in recent years:

Actions

Arrests

Fines

1960-61

1,236

254

1961-62

1962-63

1,341

2,465

382

$176,937

$262,239

543

$516,846

Details of major confiscations ordered by the Courts are given in Table 13 and of dutiable commodities and dangerous drugs in Table 12.

XIV. LEGISLATION

GENERAL

352. No major changes of legislation directly affecting the depart- ment took place during the year. The final drafts of the Dutiable Commodities and Preventive Service Bills were completed for introduc- tion in Legislative Council early in the next financial year. Revision of the Importation and Exportation Ordinance and subsidiary legislation also proceeded.

353. Minor amendments promulgated during the year are described in the following paragraphs.

IMPORTATION AND EXPORTATION ORDINANCE

(CAP. 50)

354. The Exportation (Cotton Manufactures) Regulations, made under Section 4 of the Importation and Exportation Ordinance and published as Gazette Notification No. A64 of 10th July, 1962, prohibited

67

the export of cotton manufactures to countries specified in the Schedule thereto except under and in accordance with an export licence granted by the Director of Commerce and Industry. The need for these regula- tions arose out of Hong Kong's undertaking to restrict exports to Britain, and the Geneva Short-Term Arrangement.

IMMIGRATION (CONTROL AND OFFENCES) ORDINANCE 1958

355. Gazette Notification No. A94 of 4th September, 1962 notified an amendment to the Second Schedule to the Immigration (Control and Offences) Regulations, 1961. Its purpose was to give revenue officers of the rank of Revenue Sub-Inspector or above the minimum powers necessary under the ordinance to prevent illegal immigration.

STAMP ORDINANCE (CAP. 117)

356. The Stamp (Amendment) Ordinance 1962 was enacted and published in the Gazette as Notification No. 42 of 25th October, 1962 to give effect to the increase of stamp duty on import or export declara- tions lodged at the Commerce and Industry Department from $1 to $2 as from 1st November, 1962.

357. The opportunity was taken to clarify that the charge made on such declarations is a stamp duty and not a fee. Gazette Notification No. 2430 announced the cancellation of the fee set out as item 2 in the Scale of fees published in Gazette Notification No. A98 of 23rd Septem- ber, 1960, with effect from 1st November, 1962.

REGISTRATION (IMPORTS AND EXPORTS) REGULATIONS

(CAP. 51)

358. The Hong Kong Imports and Exports Classification of Com- modities List published in Government Gazette (Special Supplement) Notification No. D. 16 of 1958 and subsequently amended from time to time was further amended under Gazette Notification No. 2572 and came into operation on 1st January, 1963.

DUTIABLE COMMODITIES ORDINANCE

(CAP. 109)

359. Pursuant to Section 7(c) of the Dutiable Commodities Ordin- ance, the Director published a revised list of general bonded warehouses and licensed warehouses in Gazette Notification No. 113 of 18th January, 1963.

68

XV. ACCOUNTS AND ADMINISTRATION BRANCH

GENERAL

360. This branch is divided into two sections, namely Accounts and Stores, and Administration, each being in the charge of an Executive Officer, Class II under the overall control of the Senior Accountant and Secretary who is a Treasury Accountant. This officer is directly respon- sible to the Deputy Director for establishment matters, general adminis- tration, costings, accounts, and stores.

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

OFFICE ACCOMMODATION

362. Due to further expansion of the department it was essential that extra office space be obtained outside the headquarters in Fire Brigade Building, but within the central district; accommodation was leased in Fung House, and the Dutiable Commodities Branch occupied it on 28th January, 1963.

363. The Training Section of the Preventive Service occupied the accommodation provided in the new Government office at Kwun Tong on 4th March, 1963, and the Kowloon Office of the Preventive Service will move to Kwun Tong at a later date.

BUILDING PROGRAMME

364. The future Castle Peak Revenue Station was re-named the Tai Lam Revenue Station and building commenced early in 1962. Construc- tion was well advanced by the end of the financial year.

Retrenchment

STAFF

365. With a further reduction in the work of the Supplies Branch it was decided at the end of the year to retrench 13 posts. The officers concerned were given three months' notice of the termination of their services but, with the co-operation of other departments, arrangements were well in hand at the end of the year towards placing these officers in alternative Government employment.

Recruitment and Training

366. The department advertised vacancies for Assistant Trade Officers during the year. Three additional posts of Assistant Trade

69

Officer, one for the Textiles Branch, one for the Hong Kong Products Display Centre in the City Hall, and one for attachment to the London Office were authorized by Special Warrant. These vacancies were all filled.

367. Following upon the decision that Government would undertake a Budgetary Survey for the purpose of establishing a new Consumer Price Index the necessary staff was approved by Special Warrant, namely:-1 Statistician, 1 Field Investigation Controller and 17 Survey Interviewing Officers. By the end of the year the posts of Statistician and Field Investigation Controller had been filled whilst the recruitment of Survey Interviewing Officers was proceeding.

368. Thirty Assistant Revenue Officers and five Women Assistant Revenue Officers were recruited during the year.

369. One Assistant Trade Officer, one Assistant Statistician, one Revenue Sub-Inspector and one clerk attended various extra-mural courses at the Hong Kong University during the year.

370. One Machine Supervisor and one Senior Machine Operator completed local training classes in data processing equipment run by the International Computers and Tabulators Ltd.

371. Resulting from a decision to expand the department's data processing installation, two officers were selected to undergo training in Britain. The first, Mr. K. Y. TONGSON, Assistant Statistical Officer, left on 21st March, 1963 and his training will include a residential course in systems analysis of four months' duration at the training establish- ment of International Computers and Tabulators Ltd. at Brodenham Manor, Buckinghamshire. The second, a Senior Machine Operator, was expected to depart shortly after Mr. TONGSON.

372. One expatriate Revenue Inspector on leave in Britain served a two-weeks' attachment to H.M. Customs and Excise Office, Waterguard Unit. Revenue Inspector LEE Kin-tak was selected to be the second Chinese officer to undergo training at the Outdoor Service Training Centre of H.M. Customs and Excise in Britain.

373. Mr. W. DORWARD, Senior Trade Officer on leave in Britain left for Geneva on 13th February, 1963 to commence a five months' course at the G.A.T.T. Secretariat.

374. One Executive Officer completed a course on techniques of supervision.

375. More than 35 officers attended classes at the Evening Institute and the Technical College, studying such subjects as management studies, book-keeping, English, shorthand and costing.

70

Staff Changes

376. The Hon. D. R. HOLMES, C.B.E., M.C., E.D., Administrative Officer Staff Grade A, assumed duty as Director of Commerce and Industry with effect from 30th August, 1962, in place of Mr. H. A. ANGUS, C.B.E., who left the Colony on vacation leave preparatory to retirement.

377. Mr. D. C. BARTY, O.B.E., Administrative Officer Staff Grade B, was promoted to Administrative Officer Staff Grade A with effect from 1st September, 1962. He assumed duty as Deputy Director on his return from vacation leave on 30th July, 1962 and acted as Director for the period 7th to 23rd September, 1962. On departure of Mr. Holmes on 26th March, 1963 for textile discussions in Japan, Norway and Washington and for a period of leave, Mr. BARTY acted again as Director of Commerce and Industry. With effect from the same date, Mr. B. I. BARLOW, Administrative Officer Staff Grade C, and Mr. J. D. MCGREGOR, Senior Trade Officer, were appointed to act as Deputy Director and Assistant Director respectively.

378. Mr. P. V. Dodge, Administrative Officer Staff Grade C, was appointed Assistant Director of Commerce and Industry and was in charge of the Controls Division for the period 26th October, 1962 to 13th January, 1963.

379. Mr. C. P. HADDON-CAVE, Senior Administrative Officer, assumed duty on 28th December, 1962 on transfer from Kenya and was appointed Assistant Director of Commerce and Industry with effect from 14th January, 1963, when Mr. P. V. DODGE relinquished his post and transferred to the Colonial Secretariat.

380. Mr. T. N. LEIGH-BENNETT, Senior Trade Officer, was appointed to act as Assistant Director of Commerce and Industry from 28th December, 1962 to 22nd January, 1963, during the absence of Mr. D. M. SELLERS in the Middle East as an official member of the Colony's trade mission.

381. Mr. D. G. JEAFFRESON, Administrative Officer, assumed duty in this department on 7th August, 1962 in place of Mr. B. C. TAN, who transferred to the Colonial Secretariat.

382. Mr. W. DORWARD, Trade Officer, was promoted to Senior Trade Officer with effect from 29th July, 1962.

383. Mr. NG Kwok-leung, Assistant Statistician, was appointed to act as Statistician with effect from 1st November, 1962, and assumed charge of the Budgetary Survey Unit.

71

384. Mr. B. N. H. Mok, Assistant Statistician, was transferred from the Census Department on 1st May, 1962 and was subsequently appoint- ed Assignment Officer in the Colonial Secretariat with effect from 2nd January, 1963.

385. Mr. M. A. SALTER and Mrs. F. HSIUNG, Assistant Trade Officers, were appointed to act as Trade Officers with effect from 3rd November and 28th December, 1962 respectively; the latter ceased to act on 1st February, 1963 on return of Mr. D. J. MARSH from the Middle East.

386. Mr. A. L. TOKLEY, Assistant Chief Preventive Officer, was appointed to act as Deputy Chief Preventive Officer for the period 1st May to 4th November, 1962 during the absence on vacation leave of Mr. D. H. KNOX.

387. Mr. R. W. NORRIS, Assistant Chief Preventive Officer, returned from vacation leave and resumed duty on 16th May, 1962.

388. Mr. F. G. CARROLL, Senior Revenue Inspector, returned from vacation leave and resumed duty on 27th June, 1962.

389. Mr. R. V. L. HATTON, Senior Revenue Inspector, was appointed to act as Assistant Chief Preventive Officer from 28th July, 1961 to 4th November, 1962.

390. Mr. W. S. F. WATSON, Revenue Inspector, was appointed to act as Senior Revenue Inspector for the period 11th April to 29th October, 1962 vice Mr. D. A. NEISH, Senior Revenue Inspector, who was on vacation leave for the period 10th April to 8th November, 1962. 391. Mr. C. G. W. KerswILL, Revenue Inspector, returned from vacation leave and resumed duty on 23rd August, 1962.

392. Messrs. W. WALSH and G. E. WELSBY, Senior Revenue Inspec- tors, proceeded on vacation leave on 11th and 19th February, 1963 respectively.

393. Messrs. R. MIDGLEY and WONG Kam-to, Revenue Inspectors, were appointed to act as Senior Revenue Inspectors with effect from 10th and 20th February, 1963 respectively.

394. Mr. A. E. TILLEY, Revenue Inspector, transferred to the Registrar General's Department as Assistant Registrar Class II with effect from 1st October, 1962.

395. Seven Revenue Sub-Inspectors were promoted to Revenue Inspectors and the same number of Revenue Sub-Inspectors were appointed to act as Revenue Inspectors.

72

396. One Senior Revenue Inspector was dismissed from the service on 18th May, 1962.

Revenue

ACCOUNTS AND STORES

397. Net revenue collected by the department amounted to $203,144,522 ($178,949,202), an increase of 13.52%. Details are given in Tables 9 to 11 and in Chapter XII.

Forfeitures

398. Revenue from forfeitures was less than in the preceding year, due to reduced sales of valuable confiscated goods.

Expenditure

399. Expenditure from departmental votes amounted to $10,467,376 which was $1,296,324 under the approved estimates. The saving was mainly due to some posts in the approved establishment remaining unfilled during the year, and to expenses on trade promotion being lower than expected. Of the total sum spent, personal emoluments accounted for $7,482,703, an increase of 7.07% over the previous year.

Stores

400. The procedure for the storage, documentation and disposal of seized and confiscated goods continued to work satisfactorily. No serious discrepancies were raised by Audit and Treasury during the year, and minor queries were satisfactorily answered.

401. Confiscated liquor, tobacco and cigarettes are sold at an authorized rate of retail price less 20% but without any warranty as to condition, while free issues are confined to certain approved char- itable organizations. Compared with last year the quantities of items sold or issued free and their respective values were as follows:

Sold:

1961-62

Quantity

Value

1962-63

Quantity

Value

Liquor Cigarettes Cigars Tobacco

6,604 qrts. $ 52,426

8,274 qrts. $ 61,149

369,650 pcs.

808,575 pcs.

9,940

3,660 pcs.

22,981 lbs.

140,645

8,938 pcs. 12,690 lbs.

}

31,165

46,450

Total ..

$203,011

Total..

$138,764

73

Distributed free:

Liquor Cigarettes Tobacco

1961-62

1962-63

Quantity

Value

Quantity

Value

1,014 bots. $ 6,994

4,347 bots.

$25,593

431,037 pcs.

9,263

405,272 pcs.

13,690

1,363 lbs.

8,342

867 lbs.

3,433

Total ..

$24,599

Total ..

$42,716

402. Proceeds of cash sales are apportioned between the appropriate revenue subheads, namely duty and Revenue Reward Fund, while credits resulting from issues to other departments go entirely to the Fund. Total credits during the year resulting from sales and issues to other departments were:

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

$ 48,654

28,982

61,128

$138,764

403. The Audit Department maintains a running audit of the depart- ment's accounts with particular regard to assessments of duty on dutiable commodities.

WELFARE

404. The Deputy Director is in charge of welfare and was available at all times to any officer who wished to discuss with him matters affecting their own or their families' welfare.

405. Two officers were given an advance of salary to assist them with funeral expenses following deaths in their immediate families. Two officers received advances of a month's salary towards expenses incurred in repairing their homes which were destroyed by typhoon 'Wanda'.

Housing of Local Officers

406. Officers in the department continued to make good use of the Co-operative Building Society Scheme. Seventy-five officers are now members of various societies.

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

Departmental Quarters

408. The new Preventive Service married quarters at Hung Hom were under construction and should be ready for occupation at the end of 1963.

74

MARINE DEPARTMENT LIBRARY

409. Another block of married quarters for the Preventive Service at King's Road remained in Category C of the building programme.

410. The lease of a Revenue Inspector's quarter at the San Miguel Brewery expired on 31st March, 1963. The owners agreed to extend the tenancy agreement on a month-to-month basis after 31st March, 1963 until the new Revenue Station at Tai Lam is ready for occupation.

Leave

411. Most officers were able to take two weeks casual leave during the year, although pressure of work did not permit the more senior officers of the department to enjoy their full leave entitlement. The Preventive Service leave roster, as in previous years, was closely adhered to.

412. On the whole the health of the staff remained good. Two officers were admitted to hospital, and both were granted three months' sick leave. Nine women officers were granted maternity leave.

Revenue Inspectors' Mess

413. The Mess held several social functions during the year, the most outstanding being the annual Christmas Dance. The financial position remained strong with $12,000 in the depreciation fund.

Canteen

414. The clerical canteen remained open throughout the year on the same basis as previously. The junior ranks of the Preventive Service continued to share this canteen.

Sports and Recreation

415. The Preventive Service football team entered the Hong Kong Football Association's second and third divisions with considerable success. The second division eleven won thirteen matches, drew six, and lost nine, and were placed fifth in the league. The third division eleven were runners-up in the league, having won twenty-three matches, drawn one and lost four.

416. One Preventive Service officer participated in an invitation 1,500 metres race at the annual athletic meeting of the Prisons Depart- ment Sports Association and was placed third. The same officer also

75

took part in an international road race over seven miles and was placed fifth.

417. In the annual Urban Services swimming gala held at Victoria Swimming Pool the Preventive Service team gained fifth place.

HONG KONG,

31st August, 1963.

D. R. HOLMES,

Director of Commerce and Industry.

76

77

Country

TABLE 1

VALUES OF IMPORTS, RE-EXPORTS AND EXPORTS,

BY COUNTRIES, 1961 AND 1962

(HK$ million)

Imports

Re-exports

Exports

1961

1962

1961

1962

1961

1962

British Commonwealth

Aden Australia

Brunei

...

0.14

0.11

2.06

2.19

10.98

15.24

151.24

195.86

25.83

36.59

60.66

85.93

3.35

1.87

1.35

2.35

2.57

2.39

Canada

...

Ceylon

Cyprus

Fiji

Gambia

Ghana

Gibraltar

India

Jamaica

Kenya

Malaya

102.37

88.14

11.81

...

13.21

64.66

90.83

6.88

7.58

3.67

6.30

15.18

13.31

0.05

0.05

0.13

0.14

3.81

4.81

Federation of Rhodesia and Nyasaland

11.65

16.22

0.77

0.34

9.52

9.09

0.08

0.23

0.42

0.25

6.72

5.67

0.01

...

0.02

2.09

1.61

...

0.70

0.90

26.81

12.13

0.40

0.16

1.60

2.69

38.02 0.19

43.93

8.51

6.42

2.46

1.98

0.22

0.41

0.79

5.11

8.22

13.75

15.37

0.13

0.26

22.57

24.69

139.86

142.66

185.24

188.91

266.96

261.86

Malta

0.04

0.02

2.31

2.31

Mauritius

0.04

0.04

1.02

0.96

8.72

11.00

New Zealand

Nigeria

North Borneo

Pakistan...

Sarawak

Sierra Leone

South Africa

Tanganyika

...

Trinidad and Tobago

5.79

7.40

3.91

3.37

36.00

35.63

13.49

4.67

0.62

1.46

50.38

52.99

29.83

37.14

7.79

9.82

34.83

53.71

75.72

...

56.29

4.21

7.75

7.61

10.42

12.68

28.63

20.56

17.31

10.19

11.11

...

0.02

0.01

9.43

10.44

89.31

91.50

2.20

4.19

31.78

38.16

34.38

47.20

0.18

1.54

4.94

4.69

|***

0.02

0.07

0.53

0.51

9.73

10.96

78

TABLE 1—Contd.

Imports

Country

1961

Re-exports

1962

1961

1962

1961

(HK$ million)

Exports

1962

British Commonwealth—Contd.

Uganda

United Kingdom

19.18

13.04

0.03

3.72

2.25

-

757.24

759.61

18.48

22.91

589.20

714.43

Zanzibar

...

2.99

4.38

0.05

0.16

1.47

1.15

British Oceania, n.e.s.

0.40

0.32

0.54

0.21

1.64

1.74

British Caribbean Territories, n.e.s.

0.48

0.35

0.15

5.65

6.17

West Indies Federation, n.e.s....

0.02

0.02

0.05

0.05

4.74

5.69

Papua and New Guinea

0.09

0.12

1.46

1.36

13.12

16.86

British Commonwealth, n.e.s.

0.03

0.03

0.14

0.09

0.67

0.77

1,508.81

1,563.17

303.59

330.74

1,327.86

1,530.91

Asia

Burma

Cambodia

China

Formosa

26.67

51.28

9.85

10.31

22.12

24.01

83.76

80.03

41.12

38.76

15.23

18.22

..

-J

---

1,028.32

1,213.17

91.27

76.92

7.87

8.47

154.18

136.14

53.40

55.24

10.34

8.80

*

Indonesia

80.38

84.93

52.75

67.41

172.94

56.93

Iran

Iraq

Israel Japan

Jordan

Laos

Lebanon

Macau

...

North Korea

North Vietnam

Persian Gulf Sheikdoms

17.64

30.08

1.64

2.13

5.95

14.20

0.25

0.44

1.39

1.85

9.25

10.58

50.71

53.20

5.35

9.41

0.04

0.31

864.39

1,097.26

123.28

143.36

106.51

76.70

0.51

0.42

1.84

2.17

0.15

0.26

6.93

7.28

2.39

3.51

1.36

0.31

1.75

2.00

3.19

4.50

49.47

58.13

56.77

65.06

14.90

20.07

*

10.50

4.11

2.76

1.83

0.27

0.17

12.02

14.99

3.08

7.25

0.55

0.90

23.02

19.06

3.99

3.99

17.20

22.97

79

Country

1961

Asia-Contd.

Philippines

Saudi Arabia and Yemen

South Korea

South Vietnam Syria

Thailand

-..

...

Asian Countries, n.e.s.

Europe

Albania Austria Belgium

...

Bulgaria

...

Czechoslovakia

Denmark

Finland

France

...

TABLE 1-Contd.

Imports

Re-exports

1962

1961

1962

1961

(HK$ million)

Exports

1962

14.76

16.63

26.70

29.46

15.31

22.39

19.56

18.65

1.66

2.22

9.78

11.44

44.35

28.80

20.54

30.88

1.80

1.08

38.99

16.08

13.75

9.69

5.11

2.54

14.37

7.71

0.31

0.21

0.64

2.09

256.06

302.62

51.22

36.04

85.76

73.56

0.18

0.11

0.94

1.74

2.89

1.30

2,791.08

3,233.97

570.95

603.47

511.89

386.90

0.01

11.77 100.83

9.52

0.03

0.02

0.59

0.88

130.72

21.49

24.37

8.30

12.25

2.20

0.01

...

9.45

8.53

15.01

17.10

1.09

0.97

12.14

20.77

7.44

10.63

0.12

0.07

1.38

4.48

58.82

63.91

5.26

2.88

6.32

9.17

...

8.96

6.78

-

0.07

0.07

185.92

190.44

4.22

7.28

105.85

151.15

0.02

0.01

0.06

0.19

1.44

2.62

5.46

1.16

0.03

0.21

...

0.04

0.32

0.18

2.37

3.07

79.38

104.05

4.22

8.70

25.19

19.77

Germany, East

German Federal Republic (Western)

Greece

Hungary

Iceland

Irish Republic

Italy

...

80

Europe-Contd.

Netherlands Norway

Poland

Portugal Rumania

Spain

...

...

Sweden

Switzerland

Turkey U.S.S.R.

Yugoslavia

Country

1961

TABLE 1-Contd.

Imports

Re-exports

1962

1961

1962

1961

(HK$ million)

Exports

1962

117.76

128.66

5.47

5.75

22.90

34.25

12.46

11.90

3.40

3.86

15.99

19.76

6.58

14.95

1.96

2.69

0.20

0.33

0.76

0.55

0.05

1.93

4.41

0.20

0.35

0.27

0.71

26.54

30.26

0.78

0.42

35.72

49.99

156.92

169.43

2.16

4.51

7.61

11.56

0.01

0.27

0.14

1.26

0.81

2.10

4.91

0.01

0.35

0.24

811.94

910.56

49.15

59.90

248.26

342.07

America

Argentina Bolivia Brazil

..

12.29

10.37

0.49

0.24

1.58

0.76

0.23

...

0.03

0.63

1.19

70.96

99.07

0.84

0.29

0.30

0.49

Chile

0.08

0.87

0.11

4.14

1.54

Colombia...

0.11

0.11

0.01

0.06

2.95

3.94

Costa Rica

0.03

0.03

1.28

...

0.85

Cuba

0.05

0.06

0.02

0.20

0.03

Dominican Republic

0.05

0.14

1.28

4.51

Ecuador

0.10

0.07

0.04

0.06

1.40

1.98

El Salvador

0.76

0.66

0.01

0.04

1.69

1.90

French and Netherlands West Indies

0.05

0.03

1.66

3.36

5.15

6.47

Guatemala

0.34

1.07

0.04

0.05

0.95

0.88

81

Country

1961

TABLE 1-Contd.

Imports

Re-exports

1962

1961

1962

1961

(HK$ million)

Exports

1962

America Contd.

Haiti

Honduras

0.01

0.13

0.15

1.40

1.68

0.01

0.03

1.64

1.44

Mexico

5.71

17.49

1.13

0.96

5.04

4.40

Nicaragua

0.51

0.77

0.01

0.01

1.17

1.22

Panama

5.92

3.03

3.85

6.82

18.33

19.36

Paraguay

0.05

0.03

0.58

0.73

Peru

0.02

0.23

1.32

0.91

3.90

4.61

United States of America

729.49

792.37

22.13

28.89

678.91

878.64

Uruguay

0.66

4.64

0.07

0.06

0.35

0.41

Venezuela

0.01

0.47

1.61

1.94

16.12

17.67

Africa

827.06

930.47

34.60

44.21

749.01

954.67

Algeria

0.02

...

0.02

0.58

0.87

Congo Republic

0.05

0.06

4.61

5.47

United Arab Republic (Egypt)

0.14

0.08

0.09

0.19

0.19

0.67

Ethiopia...

0.10

0.01

0.06

0.05

5.81

6.07

French Community: Equatorial Africa

0.01

3.15

2.66

Libya

...

0.30

0.15

3.69

5.26

Malagasy Republic

1.47

...

0.06

0.17

0.13

3.43

2.73

Morocco

0.14

0.36

0.26

0.44

0.34

0.76

Mozambique

2.85

3.29

3.33

3.24

3.76

3.58

Angola

0.40

0.05

0.11

0.36

0.21

0.38

Sudan

2.35

1.99

0.86

0.32

4.34

7.61

Tunisia

Guinea

0.30

0.48

0.03

0.84

0.13

0.05

3.25

0.25

82

Africa-Contd.

Senegal

Mali

Mauritania

Country

1961

TABLE 1—Contd.

Imports

(HK$ million)

Re-exports

Exports

1962

1961

1962

1961

1962

2.25

1.01

3.76

2.84

0.04

0.01

0.86

1.29

7.56

3.97

0.01

0.01

2.60

3.21

2.27

3.35

0.60

0.78

1.40

1.32

5.41

6.68

0.10

0.03

0.43

0.53

+

0.01

0.09

0.16

0.94

1.95

3.22

7.51

6.78

9.30

8.31

59.10

62.66

4.56

1.44

20.14

20.72

22.44

25.74

1.01

1.01

3.27

2.57

10.05

7.98

5.58

2.45

23.41

23.29

32.49

33.72

18.43

...

9.83

18.43

9.83

10.42

6.47

10.42

6.47

Ivory Coast

French Community: West Africa, n.e.s.

Cameroun Republic

Togo

Liberia

Somali Republic...

Africa, n.e.s.

Oceania

United States Oceania

Oceania, n.e.s.

Postal Packages

Total Merchandise...

5,970.40

Total Gold and Monetary Items

206.47

6,657.24

227.83

991.01

219.91

1,069.92

247.32

2,939.03

3,317.41

Grand Total

6,176.87

6,885.07

1,210.92

1,317.24

2,939.03

3,317.41

83

TABLE 2

VALUES OF IMPORTS, RE-EXPORTS AND EXPORTS, BY COMMODITIES,

1961 AND 1962

(HK$ million)

Imports

Re-exports

Exports

Section and Division

1961

1962

±%

1961

1962

±%

1961

1962

± %

Section 0:

Food

Live animals

214.22

260.05 +21

6.37

5.00

21

0.01

0.02

+100

Meat and meat preparations

95.23

86.55

9

3.98

2.68

33

1.41

1.60

+

14

Dairy products

135.29

149.03

+10

7.02

7.60 +

+8

0.16

0.27

+ 68

Fish and fish preparations

101.02

111.36 + 10

19.30

22.49

+17

12.09

22.98

+90

Cereals

...

360.23

463.27 + 29

37.13

60.75

+ 64

19.36

21.23 + 10

Fruits and vegetables

263.92

287.05 + 9

65.25

80.00

+23

31.40

26.40

16

Sugar and sugar preparations

91.81

110.91

+21

22.30

44.30

+99

21.21

21.69 + 2

Coffee, tea, cocoa and spices

63.37

57.20

10

22.75

23.88 + 5

1.76

1.37

22

Feeding stuffs for animals

32.20

34.34 + 7

3.93

3.25

17

0.65

0.59

8

Miscellaneous food preparations

49.18

49.22

10.19

9.48

7

26.24

24.25

8

1,406.48

1,608.98 14

198.22

259.42

+ 31

114.29

120.40 + 5

Section 1: Beverages and tobacco

Beverages

34.01

39.98

+18

18

5.31

6.08

14

1.91

2.5333

Tobacco and tobacco manufactures

98.42

108.64

+ 10

7.18

6.25

13

24.93

44.83 +80

132.42

148.62 12

12.50

12.33

1

26.84

47.36+76

Hides, skins and fur skins, undressed

3.90

4.51

Oil seeds and oil nuts

...

46.61

41.32

+16 11

2.24

2.85

+ 27

2.73

3.12 + 14

19.74

24.32

+23

Crude rubber, including synthetic Wood, lumber and cork

18.52

21.23 + 15

1.86

1.29

30

0.09

0.12 +26

63.81

84.89

+33

6.03

5.20

14

4.44

6.41 -+44

Pulp and waste paper

2.03

1.70

16

0.96

0.98 + 2

1.39

2.26 +63

Section 2: Crude materials, inedible,

except fuels

889

84

TABLE 2-Contd.

(HK$ million)

Imports

Re-exports

Exports

Section and Division

1961

1962

±% 1961

1962 ±% 1961

1962

± %

Section 2: Crude materials, inedible,

except fuels--Contd.

Textile fibres and waste

432.34

437.03 + 1

16.55

23.4842

8.20

10.61

+ 29

Crude fertilizers and crude minerals

13.93

11.99

14

4.50

1.28

72

2.03

1.53

25

Ores and metal scrap

17.84

23.18 +30

4.69

2.90

38

95.19

46.18

51

Animal and vegetable crude materials]

124.19

121.91

2

79.75

83.89 + 5

16.50

14.60

12

723.17

747.76 + 3

136.33

146.20 +

7

130.58

84.83

35

Section 3:

Mineral fuels, lubricants

and related materials

Mineral fuels, lubricants and related

materials

212.94

235.40

11

7.21

9.80 + 36

0.01

212.94

235.40

+

+ 11

7.21

9.8036

0.01

Section 4:

Animal and vegetable oils and fats

Animal and vegetable oils (not

essential oils), fats, greases and derivatives

76.30

95.97 +26

14.47

17.20 19

4.00

3.91

2

76.30

95.97 +26

14.47

17.20 19

4.00

3.91

2

Section 5:

Chemicals

Chemical elements and compounds Mineral tar and crude chemicals

80.34

104.68 30

1.04

1.21 +17

19.17 0.01

30.0757

4.53

4.88 +

+ 8

Dyeing, tanning and colouring

materials

58.90

68.13 16

27.65

31.11 13

18.06

18.26 +

+ 1

TABLE 2-Contd.

(HK$ million)

Imports

Re-exports

Exports

Section and Division

1961

1962 ±% 1961

1962 =%

1961

1962

±%

Section 5:

Chemicals-Contd.

Medicinal and pharmaceutical

products

110.26

...

111.93 +

+ 2

63.79

62.63

2

19.52

17.22

12

Perfume materials and cleansing

preparations

45.40

50.55

Fertilizers, manufactured

27.10

11.82

-

---

+11 56

8.03

7.93

1

6 18

5.21

16

24.85

8.77

65

Explosives and miscellaneous

chemical products

208.78

209.66

33.46

36.19 +

Co

8

7.47

11.36 52

531.81

557.98 + 5

176.96

176.70

55.76

56.93 +

2

85

Section 6: Manufactured goods

classified chiefly by material

Leather, leather manufactures and

dressed furs

28.54

28.95 + 1

2.05

1.80

12

1.58

1.21

23

Rubber manufactures

17.67

20.75

+17

1.97

1.60

19

1.23

1.11

9

Wood and cork manufactures

(excluding furniture)

20.94

27.28 + 30

2.65

2.19

18

5.84

7.5630

Paper, paperboard and

manufactures thereof

138.22

155.18 12

19.14

19.42 + 2

8 27

11.44 38

Textile yarn, fabrics and made-up

articles

866.64

966.22 +11

129.22

117.65

9

668.97

590.27

-

12

Non-metallic mineral manufactures

103.15

131.72 28

+

8.65

8.03

7

13.49

14.52 + 8

Silver, platinum, gems and jewellery

255.42

304.70 +19

64.99

98.28

+51

54.78

69.43 +27

Base metals

272.07

...

280.43 + 3

37.73

17.48

54

33.53

30.66

9

Manufactures of metals

68.80

79.75 + 16

7.79

7.71

1

120.79

135.35

12

1,771.46

1,994.99 + 13

274.19

274.16

908.47

861.56

5

86

Section and Division

Section 7: Machinery and transport

TABLE 2-Contd.

(HK$ million)

Imports

Re-exports

Exports

1961

1962 + % 1961

1962

± %

1961

1962

+ %

equipment

Machinery other than electric

271.30

292.33 8

+

29.09

28.81

1

13.96

17.25

+ 24

Electric machinery, apparatus and

appliances

207.54

245.39

1

+18

24.74

21.96

11

73.17

106.41 +45

Transport equipment

143.91

173.15 + 20

13.18

13.04

1

13.32

27.52107

622.75

710.87 14

67.01

63.81

5

100.44

151.18 51

+51

Section 8: Miscellaneous

manufactured articles

Prefabricated buildings; plumbing,

heating and lighting fittings

13.40

21.47

+60

1.01

1.07 + 6

77.40

68.53

11

Clothing

Footwear

Furniture and fixtures

Travel goods

Scientific and controlling instru-

ments; photographic and optical goods; watches and clocks

Miscellaneous manufactured

articles, n.e.s.

7.04

7.34 + 4

0.77

1.72

+124

42.80

45.85

+ 7

3.57

4.8837

0.39

0.25

34

19.37

31.50 +63

82.01

99.23 + 21

10.26

10.76

+ 5

862.07

1,147.42

+ 33

17.17

21.3424

1.90

1.00

47

103.71

129.46

...

+25

192.82

214.21 + 11

46.53

46.13

1

20.17

26.38

+ 31

148.42

464.43

167.07 13

535.54 15

34.39

+

95.24

41.11 20

+

445.94

102.04 + 7 1,571.46

519.28 16

1,968.42 + 25

Section 9:

Miscellaneous transactions and commodities, n.e.s.

Postal packages

18.43

9.83

47

[

10.42

6.47

38

Live animals, not for food Commodities, n.e.s.

1.34

1.06

21

1.60

1.06

33

0.07

0.02

67

8.87

10.2315

Gold and monetary items

206.47

227.83 10

7.30 219.91

7.19

1

16.69

16.33

2

235.10

Grand Total

6,176.87

248.95 6

6,885.07 +11 1,210.92

228.81

247.32 12

+

255.58 12

+

1,317.24+

+ 9

27.19

9 2,939.03

22.82

16

3,317.41 + 13

TABLE 3

VALUES OF EXPORTS OF PRODUCTS OF HONG KONG ORIGIN,

BY COMMODITIES, 1961 AND 1962

(HK$ million)

Commodity

1961

1962

± %

CLOTHING...

862.1

1,147.4

Outerwear, other than knitted

277.3

363.6

Shorts, jeans, trousers, overalls, pinafores

159.3

203.7

Blouses and jumpers, not embroidered

34.7

47.3

Children's outergarments

19.2

29.0

--

+++++

33

31

28

36

51

Shirts

Suits, jackets, uniforms and overcoats,

men's and boys'

Underwear and nightwear, other than knitted

Outerwear, knitted

Jackets, jumpers and sweaters Underwear and nightwear, knitted

Cotton underwear

Shirts

Gloves and mittens

Clothing, n.e.s.

Brassieres...

Clothing of impermeable materials Stockings and hose

Headwear

23.6

26.7

+

13

230.3

294.2

+ 28

159.5

202.9

+

27

83.3

172.3

...

...

+107

78.0

166.3

+113

105.8

107.6

+ 2

51.5

52.0

+

1

43.8

46.5

+

6

62.6

86.7

+

38

53.2

53.7

+

1

27.9

32.8

+

18

33.3

49.7

49

...

8.8

12.1

37

7.5

7.4

1

-

TEXTILES...

Cotton piecegoods

Cotton yarns

Towels, not embroidered

669.0

590.3

12

...

431.0

370.2

14

108.1

73.8

32

25.8

34.5

...

+

34

Bed linen, table linen and towels, embroidered MISCELLANEOUS MANUFACTURED ARTICLES

Artificial flowers, foliage and fruit

22.0

10.8

51

445.9

519.3

171.8

197.1

Toys and games

134.6

164.5

**

A

+++

16

+ 15

22

Articles of basketware or of wicker-work,

n.e.s.

19.3

26.5

Umbrellas, walking sticks and similar articles

16.2

18.9

Plastic articles...

14.2

18.1

...

Buttons and studs

10.3

11.3

Matches

...

Vacuum flasks and jugs, complete

MANUFACTURES OF METALS

11.0

10.6

1.0

0.2

120.8

135.3

...

Enamelled household utensils

62.7

63.4

Locks and keys

8.1

11.1

Aluminium household utensils

10.3

10.1

FOOTWEAR

103.7

129.5

+1+++11++++

37

17

27

10

4

80

12

1

37

2

25

ELECTRICAL MACHINERY, APPARATUS AND

APPLIANCES

73.2

106.4

...

Transistor radios

12.7

36.3

Torch batteries

18.0

19.6

Electric fans

Torch bulbs

7.0

10.5

+

8.1

7.2

++++1

45

+ 186

9

50

11

...

...

87

TABLE 3—Contd.

(HK$ million)

Commodity

1961

1962

士 %

SILVER, PLATINUM, GEMS AND JEWELLERY

54.8

69.4

Imitation jewellery

30.1

34.2

Metal watch bands

10.5

12.0

PLUMBING, HEATING AND LIGHTING FITTINGS..

77.4

68.5

+++1

27

14

14

11

Electric torches

48.0

41.0

15

Metal lanterns

13.8

12.9

7

METALLIFEROUS ORES AND METAL SCRAP

95.2

46.2

51

Iron and steel scrap

64.8

22.1

66

J

Bronze scrap

19.2

14.1

27

Iron ore

4.8

5.2

8

FURNITURE AND FIXTURES

42.8

45.8

7

Furniture of vegetable plaiting materials

25.1

28.0

Wood furniture and fixtures

15.7

16.6

TOBACCO AND CIGARETTES

24.9

44.8

TRAVEL GOODS, HANDBAGS AND SIMILAR

ARTICLES

19.4

31.5

Handbags, wallets, purses and similar articles

12.1

21.7

Travel goods

7.3

9.8

...

BASE METALS

33.5

30.7

+++ +++1

12

6

80

62

79

34

8

...

Iron and steel bars

25.6

22.9

11

+

TRANSPORT EQUIPMENT

Ships and boats

FRUITS AND VEGETABLES

13.3

27.5

+107

---

13.1

27.2

+

+ 108

31.4

26.4

16

--

Preserved fruits

11.2

9.9

12

Vegetables

10.2

9.8

4

Preserved ginger

9.0

6.4

29

...

FISH AND FISH PREPARATIONS

12.1

23.0

+

90

Crustacea and molluscs, fresh or simply

preserved

4.2

13.6

Fish, salted, dried or smoked

4.7

5.0

Fish in airtight containers

1.6

1.9

...

SUGAR AND SUGAR PREPARATIONS

21.2

21.7

CEREALS AND CEREAL PREPARATIONS

19.4

21.2

DYEING, TANNING AND COLOURING MATERIALS

18.1

18.3

Paints, enamels and mastics...

12.4

11.4

Lacquers and varnishes

2.6

2.8

...

ANIMAL AND Vegetable CRUDE MATERIALS

16.5

14.6

Rattan cane, core and peel...

9.8

8.8

| !+ !++++++

+224

6

19

2

9

1

8

12

10

Feathers

4.0

4.0

NON-METALLIC MINERAL MANUFACTURES

13.5

14.5

Glassware

5.5

6.4

Pottery...

3.7

3.4

Cement...

3.2

3.4

Glass inners for vacuum flasks

0.5

0.8

BEVERAGES

1.9

2.5

Non-alcoholic beverages

1.2

1.8

OTHERS

168.9

182.6

Total

2,939.0

3,317.4

++1+++++|+

7

16

8

6

60

32

50

8

13

NOTE:

The items shown under each heading are only the main items,

and do not add up to the sub-totals.

88

TABLE 4

VOLUME OF EXPORTS OF SELECTED PRODUCTS OF HONG KONG ORIGIN, 1961 AND 1962

Commodity

Unit

1961

1962

% increase or decrease

Wheat flour, other than self raising... cwt. Macaroni, spaghetti, noodles, ver- micelli and similar preparations

Biscuits...

...

Ginger preserved in syrup

452,211

477,376

+ 6

...

cwt.

32,700

36,212 + 11

lb.

...

...

3,590,682

4,003,505

+

11

Ib.

8,545,615

7,164,069

16

Fruits preserved and fruit preparations

(except ginger)

lb.

9,217,847

7,415,271

20

Waterchestnuts, canned

lb.

503,642

397,739

21

glutamate)

Cigarettes

worked

Refined sugar

**

Sauce, other than soy..

Soy sauce

+

Gourmet powder (monosodium

Light hardwoods, shaped or simply

Cotton mill waste, devilled cotton

waste, and cotton shoddy, not

further manufactured

Iron ore...

cwt.

595,554

702,985

+

18

lb.

5,470,869

4,369,973

lb.

6,199,961 6,952,549

+1

20

12

lb.

1,878,289 1,635,951

13

lb.

+

4,514,025

8,647,015 + 92

...

cu. ft.

389,211

514,694 + 32

cwt.

132,369

179,248 + 35

cwt.

2,547,790

2,293,040

10

Iron and cast iron scrap

cwt.

537,652

475,850

11

Steel scrap

cwt.

3,538,166

1,603,902

55

Brass scrap and bronze scrap

cwt.

125,620

103,285

18

Feathers (except ornamental feathers

and downs)

lb.

674,815

532,620

Rattan canes

***

cwt.

50,198

42,633

Rattan core and peel

cwt.

32,364

32,885

Groundnut (peanut) oil

cwt.

26,014

26,940

Lacquers and varnishes

lb.

1,342,760

1,663,732

11+++

21

15

2

4.

24

Prepared paints, enamels and mastics

(other than ships')

lb.

10,454,244

9,878,794

6

Cotton yarn and thread, grey

lb.

35,480,867

23,456,843

34

Cotton piecegoods, grey

sq. yd.

215,772,528

239,445,217

+

11

Cotton piecegoods, other than grey

sq. yd.

160,506,103

114,301,265

29

Fabrics of spun rayon yarn

sq. yd.

2,406,963

1,485,461

38

Stockinette of textile fibres (knitted

fabrics)

Fishing nets

Bags and sacks for packing (other

than gunny bags and paper bags)... no.

lb.

+

2,856,658

2,415,147

15

Ib.

...

536,049

496,484

7

21,500,607

35,452,947

Towels, not embroidered

doz.

2,682,006

4,130,808

Towels, embroidered

doz.

+

1

230,132

201,908

Bed linen, not embroidered

doz.

62,245

106,360

Table linen, embroidered

doz.

357,655

114,337

Carpets of wool and fine hair...

sq. ft.

377,256

470,080

++1+1+

65

54

12

71

68

+ 25

89

Commodity

TABLE 4-Contd.

Unit

1961

1962

% increase or decrease

Carpets, mats and matting of

vegetable plaiting materials not for use in packing

Cement...

Iron or steel bars and rounds

Aluminium plates and sheets...

Metal containers for transport and

storage

+

Torch batteries...

Torch bulbs

Electric bulbs, filament for electric

lighting (other than torch bulbs)

Fans, electric

Ships and boats

Electric torches

Oil lamps (except metal lanterns) Metal lanterns other than pressure

sq. ft.

cwt.

2,567,910 583,887

3,507,044

708,750

+37 + 21

cwt.

817,641

819,270

cwt.

36,210

34,805

no.

11,116,349

17,988,600

doz.

7,904,562

9,466,608

doz.

10,514,943

9,264,787

++1

62

20

12

doz.

3,617,764

3,739,321

no.

75,422

122,429

no.

273

321

doz.

2,908,370

2,520,985

doz.

314,832

359,114

+1+++

62

18

13

14

*** *****

3

lanterns

doz.

163,398

196,038 + 20

Pressure lanterns

doz.

31,477

24,736

+

Electric portable lamps

doz.

83,157

74,821

222

21

10

Socks and stockings, wholly or mainly

of cotton

doz. pr.

560,824

529,404

6

Socks and stockings, men's and

children's, wholly or mainly of silk or artificial silk

doz. pr.

636,214

1,114,051 + 75

Underwear and nightwear, knit or

made of knitted fabrics

doz.

4,613,210

4,911,796 + 6

Shirts, knit or made of knitted

fabrics

doz.

2,266,370

2,290,739 + 1

Jackets, jumpers, sweaters, cardigans

and pullovers, knit or made of knitted fabrics

doz.

869,067

1,380,903 + 59

Shirts, other than knitted

doz.

---

3,213,470

4,040,100 + 26

Swimming suits and trunks, other

than knitted...

doz.

-

...

174,593

167,492

4

...

Underwear and nightwear, other than

knitted Skirts, dresses, frocks, gowns and house- coats, other than knitted, except of silk and brocades, women's wear Skirts, dresses, frocks, gowns and house-

doz.

1,261,677

1,710,516

+36

doz.

196,393

166,421

15

coats, other than knitted, of silk and

brocades, women's wear

doz.

15,463

22,554

+46

Blouses and jumpers, other than

knitted, not embroidered, women's

wear

doz.

...

1,216,103

1,436,852 +18

Blouses and jumpers, other than

knitted, embroidered, women's wear doz.

70,836

116,483 + 64

90

Commodity

TABLE 4—Contd.

Unit

1961

1962

% increase or decrease

Suits, jackets, uniforms and overcoats,

other than knitted, men's wear Slacks, shorts, jeans, trousers, overalls

and pinafores, other than knitted.. doz.

Children's outergarments, other than

knitted

doz.

37,582

41,934

+ 12

3,878,902

4,695,364

+ 21

doz.

687,187

699,596 + 2

Outerwear of rubberized fabric,

mackintosh or oilskin materials

doz.

...

186,937

273,195 + 46

Outerwear of plastics materials

doz.

224,676

703,536 +213

Gloves and mittens, textile fabric

doz. pr.

445,945

832,237 + 87

Gloves and mittens, woollen, knitted...

doz. pr.

1,229,299

919,219

25

Gloves and mittens, cotton, knitted...

doz. pr.

811,739

1,018,706

+

25

Gloves and mittens, other than

Brassieres

woollen and cotton, knitted

Handkerchiefs ...

Slippers of all materials, except

doz. pr.

644,184

990,126

+

54

doz.

828,988

484,184

42

doz.

2,355,779

3,360,854 + 43

rubber, not embroidered

...

doz. pr.

456,455

694,911 + 52

Slippers of all materials, except

rubber, embroidered

...

doz. pr.

93,742

77,066

18

Footwear, wholly or mainly of leather]

(not including slippers)

doz. pr.

118,820

146,003 + 23

Footwear, wholly or chiefly of textile

materials, with rubber soles (not including slippers)

+

doz. pr.

1,790,547

2,060,009 + 15

Rubber footwear, wholly or mainly of

rubber...

...

doz. pr.

Cameras, photographic

Cinematographic films, exposed

Umbrellas and parasols

Buttons, plastic

...

no.

501,831

271,596

746,461

+

49

179,631

34

ft.

17,100,095

19,425,141

+ 14

doz.

518,511

567,866 + 10

gross

9,916,923

11,151,482

+ 12

Tooth brushes

doz.

+

3,316,775

3,309,600

Joss sticks (including joss stick powder) cwt.

37,369

34,119

9

Vacuum flasks and jugs, complete

doz.

265,358

252,712

5

91

92

TABLE 5

QUANTITIES AND VALUES OF SELECTED ITEMS OF RE-EXPORT WITH

CORRESPONDING IMPORT FIGURES, 1961 AND 1962

Commodity

Import

Re-export

1961

1962

1961

1962

Unit of Quantity

Quantity

HK$ million

Quantity

HK$ million

Quantity

HK$ million

Quantity

HK$ million

Diamonds, cut and polished, unset

carat

321,087

228.07

Rice, white (100% and whole rice)

Beet sugar and cane sugar, refined...

*

thou. cwt.

5,200

184.11

371,846 270.72 53,838 50.05

5,908 242.60

65,056

64.86

883

26.55

1,224

42.38

thou, cwt.

2,071

65.98

3,176 82.07

705

19.93

1,913

41.76

Watches, complete

Beans, peas, lentils and other legumes (pulses) dry,

including split

Coal-tar dyestuffs, other than indigo

Organic compounds, n.e.s. (including complex function

alcohols, and acids)

Pharmaceutical products, n.e.s. (including medicated

wine and medicinal tea)

*Fabrics wholly or mainly of rayon type spun yarn

thousand

2,320

118.48

2,397 130.62

799

30.45

966

30.30

+

thou. cwt.

982

28.74

1,067

34.50

577

17.25

786

27.34

cwt.

55,813

36.10

62,751

45.69

33,073

23.63

31,103

25.63

---

cwt.

36,807 9.28 647,109

33.68

9,444 3.38

583,759 20.34

...

44.05

46.79

19.07

17.82

(except brocades)

Coffee, not roasted

thou. sq. yd. thou. lb.

12,616

13.94

52,559 10,546 11.16

51.94

25,543

16.89

8,099 8.99

12,884

13.00

unset

Cassia

-

*Table damasks and manufactures of cotton, embroidered doz.

Transistor radio receiving sets

Precious stones, other than diamonds, cut and polished,

Groundnut (peanut) oil

---

thousand

368

35.62

557,541 355

33.45

348,864

12.43

32.09

201

15.87

164

12.24

1.21

1.23

cwt. cwt.

31,610 168,798

6.68 49,042

8.59

19.05

279,116

29.65

3.09 32,199 7.88 46,829 59,045

11.07

9.82

7.57

77,620

9.65

Maize (corn) unmilled

Pyrotechnical articles (fireworks)

thou. cwt.

1,368

21.69

2,438

39.04

27

0.45

577

9.54

J

14.15

+

12.85

10.56

9.51

Polythene (polyethylene) moulding compounds Jute, including jute cuttings and waste Fresh or chilled vegetables chiefly for food, n.e.s.

---

thou. lb. cwt.

69,283

86.07

83,053

89.83

6,742

9.16

8,006

9.47

7,013

0.26

255,217

6.82

2,019

0.13

258,977

8.81

thou. cwt.

1,176

16.11

1,513

20.29

154

6.18

209

8.76

Tea, China (and Formosa)

thou. lb.

11,298

23.08

9.904

19.61

3,103

9.32

3,262

8.36

Gunny bags, new or used

---

---

thousand

1,080

1.99

4,531

5.75

4,314

6.76

Prawns and shrimps, fresh, chilled or frozen Rattan canes

6,366 7.85

thou. lb.

8.755

10.22

12,887

17.68

967

2.73

2,174

7.76

*

cwt.

248,211

10.55

296,203

11.27

84,038

6.11

96,310

7.67

Fabrics wholly or mainly of wool or fine hair

thou. sq. yd.

11,181

102.38

16,457

110.51

668

7.68

702

7.48

TABLE 5-Contd.

Import

Re-export

Commodity

Unit of

1961

1962

1961

1962

Quantity

Quantity

HK$ million

Quantity

HK$ million

HK$

HK$

Quantity

million Quantity million

---

Cinematographic films, exposed, whether developed

or not

Edible nuts, fresh or dried, n.e.s.

Sesamumseed ...

...

...

*Poplin and broad cloth, cotton, other than grey

Sulphate of ammonia

Articles (not furniture) of basketware or of wickerwork

(excluding rattan), n.e.s.

Tung oil (wood oil)

Joss paper

Cuttlefish and squids, salted, dried or smoked Soya beans

*Shirting, cotton, other than grey, n.e.s.

Fabrics wholly or mainly of rayon type continuous

filament yarn (except brocades in 1962)

Raw cotton, other than linters

Vegetables, dehydrated or evaporated, n.e.s.

Feathers

Jade, cut and polished, unset

thou. ft.

...

22,985

7.92

cwt.

121,434

12.87

140,062

cwt.

77,141

4.09

132,192

thou. sq. yd.

75,757

thou. cwt.

1,289

15.50

641

28,947 12.71 14.29 6.55 109.18 7.40

4.87

12,362 5.97 12,409 7.27 49,428 5.04 50,204 7.00 83,342

122,151 6.99

5,089

6.87

1,182

14.56

544

6.39

-

5.19

4.52

3.64

5.93

cwt.

50,657

7.26

36,850

7.52

31,830

4.65

30,247

5.90

11.14

9.21

6.97

5.88

cwt.

140,348

13.79

76,097

8.89

59,947

6.29

58,990

5.76

...

cwt.

584,722

18.22

411,066

12,86

159,996

5.54

176,423

5.64

...

thou. sq. yd.

10,946

13.97

6,038

5.59

thou. sq. yd.

15,724

26.13

25,596

38.64

3,957

4.00

6,046

5.55

thou. cwt.

2,298

381.48

2,071 341.98

35

6.35

32

5.29

cwt.

99,093

9.79

140,139

12.17

62,191

4.88

53,161

5.29

thou. lb.

1,262

4.73

1,096

4.80

920

4.87

954

4.89

4.43

3.29

3.01

4.83

Paper and paperboard, n.e.s.

thou. lb.

*

15,088

9.78

12.634

8.73

6,301

4.51

5,803 4.82

Insecticides

thou. lb.

5,301

6.90

5,643

7.67

3,163 4.13

3.687 4.81

Fabrics wholly or mainly of silk (except brocades in 1962) thou. sq. yd. Lard, crude or refined

10,045

47.28

10,283

50.91

1,075 3.80

1,310

4.63

--

thou. Ib.

15,886

13.04

17,300

12.94

3,863

3.33

5,754

4.51

Aircraft engines, reciprocating

No.

2

0.14

18

0.66

205

3.99

198

4.47

Aluminium and aluminium alloys, unwrought

cwt.

198,828

29.90

123,493

18.06

94,438

13.88

31,422

4.46

Edible marine vegetables, dehydrated or evaporated

cwt.

23,185

10.39

9.727

4.13

7,125

2.87

14,821

4.38

Cigarettes

thou. lb.

5,446

60.27

5,535

57.38

436

4.34

410

4.35

Fountain pens

doz.

156,403

4.41

208,025

9.05

80,156

1.79

125,463

4.18

Animal products, crude, used in medicine and

perfumery

lb.

Vegetables, preserved or prepared (except frozen,

dehydrated or in brine) not in airtight containers, n.e.s. cwt.

44,230

248,634

6.51

8.09

50,639 4.65

260,396 7.90 130,661 6.58

13,218 3.45

13,550

4.18

85,006

4.04

* Not separately classified in 1961.

93

94

FOOD STUFFS

TABLE 6

END-USE ANALYSIS OF IMPORTS IN 1960-62

Current value in HK$ million

1960

1961

%age of total imports

1962

1960

1961

1962

Bovine cattle

65.86

56.79

67.39

1.1

1.0

1.0

Swine

Milk, cheese and eggs

Fish & fish preparations

Wheat and spelt

152.46

137.98

164.65

2.6

2.3

2.5

...

115.33

121.31

132.84

2.0

2.0

2.0

113.31

101.02

111.36

1.9

1.7

1.7

30.96

34.57

44.66

0.5

0.6

0.7

Rice

230.09

257.70

323.97

3.9

4.3

4.9

++

Fruits

130.04

136.36

151.62

2.2

2.3

2.3

Vegetables

133.87

127.57

135.43

2.3

2.1

2.0

J

Sugar

67.04

80.29

97.76

1.1

1.3

1.5

Tea and coffee

39.40

48.50

43.02

0.7

0.8

0.6

Soya bean oil, peanut oil, butter & lard

62.59

82.14

108.26

1.1

1.4

1.6

Other

298.75

309.78

334.22

5.1

5.2

5.0

Imports

Re-exports...

1,439.70 202.90

1,494.01

1,715.17

24.6

25.0

25.8

218.50

285.22

Retained Food Stuffs

1,236.80

1,275.51

1,429.95

21.1

21.4

21.5

FUELS

Liquid fuel

Solid fuel

Imports

Re-exports...

Retained Fuels

:

:

:

179.63 38.20

194.60 37.24

217.97

3.1

3.3

3.3

33.15

0.7

0.6

0.5

217.83

231.84

251.12

3.7

3.9

3.8

7.01

8.15

10.79

210.82

223.69

240.33

3.6

3.7

3.6

%age of total imports

1962

1960

1961

1962

TABLE 6-Contd.

Current value in HK$ million

1960

1961

CONSUMER GOODS

Alcoholic beverages

...

Tobacco and tobacco manufactures

Medicinal & pharmaceutical products...

Made-up articles of textile materials other than

clothing

Diamonds

Radio, television, gramophones & records, tape

recorders, refrigerators & washing machines Passenger motor cars

Clothing ... Watches

Other

Imports

---

+

30.29

33.98

39.94

0.5

0.6

0.6

85.00

98.42

108.64

1.4

1.6

1.6

108.81

110.26

111.93

1.9

1.8

1.7

***

76.66

74.64

82.11

1.3

1.3

1.2

185.13

228.07

270.72

3.2

3.8

4.1

86.61

109.22

128.39

1.5

1.8

1.9

...

55.08

48.18

53.61

0.9

0.8

0.8

70.99

82.01

99.23

1.2

1.4

1.5

105.84

118.48

130.62

1.8

2.0

2.0

410.79

438.39

471.04

7.0

7.3

7.1

1,215.20

1,341.65

1,496.23

20.7

22.5

22.5

Re-exports

302.50

320.71

362.42

Retained Consumer Goods

912.70

1,020.94

1,133.82

15.6

17.1

17.0

RAW MATERIALS

Raw cotton

284.30

381.48

341.99

4.8

6.4

5.1

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

122.19

99.78

97.43

2.1

1.7

1.5

64.56

58.90

68.13

1.1

1.0

1.0

Plastic moulding materials

118.03

142.16

141.69

2.0

2.4

2.1

Cotton yarn & thread, grey, of all counts

123.37

67.33

31.71

2.1

1.1

0.5

Cotton sheeting, shirting & piece goods of all kinds Woollen fabrics & mixtures

375.57

299.10

291.62

6.4

5.0

4.4

...

119.30

102.38

110.51

2.0

1.7

1.7

Fabrics of rayon, nylon, terylene, dacron or orlon yarn

123.74

112.02

160.01

2.1

1.9

2.4

Building & construction materials excluding glass Iron & steel

65.78

60.88

...

85.70

1.1

1.0

1.3

191.15

179.96

204.66

3.3

3.0

3.1

Other base metals

110.72

92.11

75.77

1.9

1.5

1.1

Other

872.16

876.43

...

1,090.98

14.9

14.7

16.4

Imports

Re-exports

Retained Raw Materials

2,570.87

2,472.53

2,700.17

43.8

41.4

40.6

509.63 2,061.24

401.90

2,070.63

371.03

2,329.14

35.2

34.7

35.0

95

96

TABLE 6—Contd.

Current value in HK$ million

1960

1961

%age of total imports

1962

1960

1961

1962

CAPITAL GOODS

Office machinery & equipment

16.55

17.30

18.22

0.3

0.3

0.3

Mining, construction & industrial machinery

excluding textile machinery

110.45

113.66

149.41

1.9

1.9

2.2

Textile machinery

97.04

68.27

45.49

1.7

1.1

0.7

...

Electric machinery

48.27

56.84

71.99

0.8

1.0

1.1

Radio & telegraphy

19.44

21.03

24.71

0.3

0.4

0.4

Road motor vehicles & parts other than passenger

motor cars

42.71

35.13

34.43

0.7

0.6

0.5

Scientific, medical, optical, measuring & controlling

instruments & apparatus

15.93

15.39

18.04

0.3

0.3

0.3

Other

69.73

102.74

132.26

1.2

1.7

2.0

Imports

420.12

430.36

494.54

7.2

7.2

7.4

Re-exports

48.41

41.76

40.45

Retained Capital Goods

371.71

388.60

454.09

6.3

6.5

6.8

Total imports

Total re-exports

Total Retained Imports

5,863.69

5,970.40

6,657.24

100

100

100

1,070.46

991.01

1,069.92

:

4,793.23

4,979.39

5,587.32

81.7

83.4

83.9

97

TABLE 7

ORGANIZATION OF THE COMMERCE AND INDUSTRY DEPARTMENT

DIRECTOR OF COMMERCE AND INDUSTRY

DEPUTY DIRECTOR

DEVELOPMENT DIVISION TEXTILES AND CERTIFICATION

CONTROLS DIVISIÓN

ADMINISTRATION DIVISION

Trade Development Branch

Export Promotion Section Hong Kong Products Display

Centre

Trade Agreements and Market

Research Section

Industrial Development Branch

Industrial Development

Section

Production Statistics Section

Trade Publications Section

Statistical Branch

Trade Statistics Section

Miscellaneous Statistics

Section

Budgetary Survey Unit

National Income Survey

London Office

Certification Branch

Trade Licensing and Supplies Branch

Overseas Offices

Export Licensing Section

Certificates of

Origin Section

Comprehensive Certificates

Import Licensing Section

Supplies Section

Dutiable Commodities Branch

-Preventive Service

of Origin

Section

-Kowloon Office

Common-

wealth Pre-

ference

Section

Kowloon In-

spection Control

Textiles Branch

Headquarters Section

Investigation and Prosecution Section

Industry Inspection Section

Training Section

Eastern District Section

Western/Marine Section

Special Section

Kowloon Section

New Territories Section

Sydney Office

Accounts and

Administration

Branch

Accounts and

Stores Section

Administration

Section

98

TABLE 8

CERTIFICATION OF HONG KONG PRODUCTS

Commonwealth Preference Certificates

Commonwealth Preference Certificates

1961-62

1962-63

Factories

registered on 31.3.62

Certificates issued

Value of Goods H.K.$

Factories registered on 31.3.63

Value of

Certificates issued

Goods

H.K.$

43,428

159,425,928

38,999

156,442,688

(Forms E. 120 E/COM. 113, D. 119 and D/COM. 112)

4,341

55,663

572,138,233

4,585

66,694

787,789,931

Standard Certificates of Origin

125,610

703,961,055

136,862

863,424,135

Comprehensive Certificates of Origin

Commercial

Tourist

Gift

Sample

...

Mail Order

28,091

28,968

88,361

99,941

11,613

526,886,119

13,355 456,000,278

6,852

8,088

6,312

12,952

367,706 1,962,411,335

404,083

|2,263,657,032

TABLE 9

NET REVENUE COLLECTED FROM ALL SOURCES

Actual Revenue

Approved Estimates

Increase/ Decrease

1962-63

1962-63

1961-62

$

$

$

%

55,000,000 58,320,916

51,999,337

28,300,000

30,445,330

24,355,803

+12.2 + 25.0

1,100,000

1,233,560

1,084,450

+13.7

*

78,000,000

84,993,497

77,122,064

+ 10.2

19,500,000

19,941,607

17,109,666

+ 16.6

3,900,000

5,009,435

4,127,984

+ 21.4

Duties

Hydrocarbon oils imported Intoxicating liquor imported Liquor other than intoxicating

liquor imported

Tobacco imported

Liquor locally manufactured

Table waters

Licences

Hydrocarbon oils

Liquor

Tobacco

Miscellaneous (table waters)

...

54,000 1,308,000

60,968

57,147

1,422,981

1,332,429

438,000

463,834

444,688

7,400

7,411

7,451

|+++

6.7

6.8

4.3

0.5

Fines and Forfeitures

Fines

+

Forfeitures

5

400,000

147,939

382,660

— 158.7

Fees of Court or Office

Denaturing

360,000

446,929

388,859

+14.9

Factory inspection and

supervision

19,000

30,116

20,305 + 48.3

Official certificates

22,000

19,205

19,875

3.4

Official signatures

4,500

5,375

4,180

+ 28.6

Departmental services and

supervision

14

1

...

Overpayments in previous years

415

140

Anti-narcotic smuggling guards

11,000

7,585

Bonded warehouse supervision...

100,000

118,930

9,175 103,775

M

17.3 +14.6

Loss of, or damage to

Government property Officials and others for light, fuel,

etc. in Government buildings... Advertisement revenue... Publications

Miscellaneous

...

200

70

6

200

...

323,000 2,500

144 358,350

144

319,214

9,094 100,817

3,117 56,727 + 77.7

12.3 +191.8

188,849,800 | 203,144,522 178,949,202

+ 13.5

99

Liquor:

Whisky

Brandy

Gin

Wines

Beer

TABLE 10

DUTY FROM DUTIABLE COMMODITIES (GROSS)

1961-62

1962-63

Type

Unit

Quantity

Duty

Quantity

Duty

Other European Type...

Chinese Type:

(a) Locally Distilled

(b) Imported...

Spirituous liquor other than

intoxicating liquor

Methyl Alcohol...

Total:

Tobacco :

Cigarettes and Cigars

European Smoking Tobacco

(including Snuff)

Chinese Prepared Tobacco

Tobacco Leaf

申申

Total:

Hydrocarbon Oils :

Light Oils

Diesel Oils

Furnace Oils

Other Type

Table Waters:

Total:

Intoxicating Liquor

Spirituous liquor other than

intoxicating liquor

Table Waters

Tobacco

Hydrocarbon Oils

Total:

:

:

Gallons

81,226

4,414,187

82,383

5,377,785

**

143,777

8,833,508

158,584

11,456,777

32,172

1,795,519

31,449

2,116,995

92,562

2,138,551

101,672

2,294,058

4,338,341

"7

6,383,509

4,785,229

8,371,189

13,576

>>

791,469

13,329

928,937

75

2,054,201

13,133,338

2,124,874

14,686,187

483,630

4,282,087

589,585

5,442,097

* 3

88,044

1,112,952

905

7,328,434

15,251

42,900,371

97,230 908

1,316,041

16,326

7,985,243

52,006,392

Pounds

4,857,462

38,064,922

5,184,446

40,623,303

99

46,698 22,605 12,677,813

77

285,559 110,782 71,058,625

66,662 447,957

397,815

1,119,892

16,420,088

91,919,027

17,604,578

109,519,888

22,119,153 134,060,037

Imp. Gallons

19,366,648

25,570,286

20,495,383

26,462,487

59

34,220,157

8,263,397

41,110,850

11,308,836

59

148,815,261

14,881,526

165,634,048

16,563,405

27

34,452,816

3,417,606

40,386,044

3,997,842

236,854,882

52,132,815

267,626,325

58,332,570

Gallons

8,599,966

4,127,984

10,436,466

5,009,503

Refund and Drawback

306,698

287,089

43,753 1

98,806 68

32,397,825

49,066,540

133,478

32,881,755

11,654

49,464,157

100

TABLE 11

REVENUE FROM DUTIABLE COMMODITIES LICENCES, 1962-63

Importer's:

Liquor

Tobacco

Hydrocarbon oils

Table waters

Methyl alcohol

Dealer's:

European-type liquor

Chinese-type liquor

Spirituous liquor

Tobacco

Hydrocarbon oils

Methyl alcohol

Retailer's:

Chinese-type liquor

Spirituous liquor

Tobacco

Hydrocarbon oils

Methyl alcohol

Manufacturer's:

Liquor (Distillers 16)

Tobacco

(Brewer

1)

Table waters

...

...

No. of Licences Issued

Revenue

$

+

470

70,500.00

92

13,800.00

291

43,650.00

18

1,800.00

21

*

...

210.00

***

***

...

...

...

394

586,875.00

1,369

646,029.50

582

17,460.00

225

67,500.00

...

464

...

4,640.00

24

240.00

126 2,023

18,400.00

70,418.20

9,113

369,339.00

603

...

6,030.00

6

60.00

...

...

:

...

Warehouse :

Liquor Tobacco

Hydrocarbon oils Methyl alcohol

Table waters

+

...

Ship and harbour vessel licences

+

Licence fees for persons importing for own use and

miscellaneous

...

Refunds:

Liquor licence fee

Tobacco licence fee

...

Total:

عالم

17

2,600.00

7

2,100.00

21

3,825.00

16

5,407.00

6

3,000.00

11

...

3,850.00

5

11

50.00 110.00

387

1,152.00

16,331.29

16,302

$1,955,376.99

+

...

...

...

Total:

$

101

Net Total:

SA

162.88 20.00

182.88

$1,955,194.11

TABLE 12

CONFISCATIONS UNDER THE DUTIABLE COMMODITIES ORDINANCE, CHAPTER 109 AND DANGEROUS DRUGS ORDINANCE, CHAPTER 134

Commodity

Quantity

Unit

1961/62

1962/63

Tobacco

Chinese prepared tobacco...

lb.

70,125.000

4,656.76

Foreign cigarettes

lb.

728.962

2,714.77

Macau and Chinese cigarettes

lb.

2,007.485

522.71

Tobacco stems

lb.

51.50

64.50

Cigars

lb.

89.02

310.10

Cut tobacco

Ib.

7.75

4.98

Tobacco leaf

Ib.

48.00

229.50

Pipe tobacco

lb.

174.69

Liquor

European type liquor

gal.

1,592.30

2,032.10

Chinese type liquor

gal.

3,043.28

3,440.97

Beer

gal.

340.91

Chinese medicinal wine

gal.

248.48

Alcohol

gal.

Fermented material

gal.

18.00

27,644.50

17.29

67,794

Illicit stills

no.

535

460

Dangerous Drugs

Raw opium

lb.

426.94

1,116.24

Prepared opium

lb.

4.30

14.83

Diacetylmorphine Hydrochloride

gm.

93.40

21,748

Opium dross

OZ.

96.267

403.36

Barbitone

gm.

313.50

707.73

Opium water

fl. oz.

42

1,573.20

Opium pipes

no.

21

23

Opium pipe heads

no.

25

18

Opium lamps

no.

52

35

Morphine

lb.

27.23

149.861

102

TABLE 13

MAJOR CONFISCATIONS UNDER OTHER LEGISLATION—1962-63

Legislation

Importation and Exportation

Ordinance, Chapter 50, and Regulations made

under

there-

Gold

Commodity

Unit

Quantity

tael

6,105.477

Wrist watches

Spring knives

number

171

number

225

Cinema film Binoculars...

Cigarette lighters..... Swimming trunks... Plastic wallets

Imitation gold chain Lighter flints Cufflinks

Nylon panties

Cloth

Pirated books

reel

3

pair

3

dozen

1,463

number

665

...

number

240

number

20,670

tin pair

100

2,400

number

+

1,198

bale

30

number

1,223

Merchandise Marks Ordinance,

Chapter 41

Labels

Gripe water

Dies

number

3,537

bottle

135

number

16

set

3

Pharmaceutical prepara-

tions

tin

14,411

tube

4,026

bottle

1,140

box

934

Rubber sandals

...

*

pair

1,594

Rubber straps Cellophane bags

...

pound

490

number

3,200

Soap

...

Paper wrappers Sun glass cases

Hair cream

piece

2,548

number

1,932

number

53

jar

360

Lubricating oil

drum

3

Agricultural Poisons Regula- tions, 1955, Chapter 241

Sanitary napkins Boxes

Tooth paste

Parathion ..

Malathion ...

box

32

number

114,566

tube

381,239

Cubic

91,450

centimeter

780

...

103

Directorate

TABLE 14

DISTRIBUTION OF APPROVED ESTABLISHMENT

Boards

...

...

Confidential Typing Pool

Administration Division

Overseas Offices

London Office

Sydney Office

31.3.63

31.3.62

6

4

...

2

4

10

3

9

16

10

4

20

4

14

2

2

19

19

22

22

+

15

58

12

...

55

Administration Section

Accounts and Administration Branch

Accounts and Stores Section

Leave Reserve

Development Division

Trade Development Branch

Trade Agreements and Market Research Section...

Export Promotion Section

Hong Kong Products Display Centre

Industrial Development Branch

Trade Publications Section

Statistical Branch

Budgetary Survey Unit

National Income Survey

Textiles and Certification Division

Certification Branch

***

Certificates of Origin Section

M

Comprehensive Certificates of Origin Section

15

5

11

7

23

15

20

18

8

28

7

25

78

77

25

1

104

77

2

2

2

2

31

30

17

19

12

10

5

5

17

86

68

Commonwealth Preference Section

Kowloon Inspection Control

Textiles Branch

Controls Division

Trade Licensing and Supplies Branch

53

59

Dutiable Commodities Branch

29

28

Kowloon Office

19

101

19

106

Preventive Service

6

7

Headquarters Section

40

16

Investigation and Prosecution Section Industry Inspection Section

10

36

42

Training Section

9

13

Eastern District Section

23

37

Western/Marine Section

Special Section

Kowloon Section

New Territories Section

115

56

172

254

+

91

77

45

547

48

550

...

977

919

104

GPHK

Code No.: 0342763 Price: $6.00


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