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INDUSTRY AND TRADE
such a development. But with these circumstances, all of them outside the Colony's control, some of them fortuitous, there must be considered the political stability of the territory and the official policies which have encouraged enterprise. There has been a stead- fast policy of refusing to surrender to occasional protectionist pressure, demands for subsidies to industry, or retaliation against other countries' restrictive actions. Widespread skill in merchan- dising techniques inherited from the entrepôt era and highly develop- ed banking, insurance and shipping systems have made this policy practicable and successful. For Hong Kong the only industries worth having are those whose products can be sold in the domestic market without protection or which can be exported without subsidy. Hong Kong has therefore remained true to the traditions established when it was an entrepôt, i.e., no tariffs other than those which are designed solely to produce revenue, and free ingress for other goods from any quarter of the globe.
In matters affecting internal and external trade, the Director of Commerce and Industry is consulted and tenders his advice after consulting the Trade and Industry Advisory Board, a body of unofficial senior representatives of commerce, industry, banking, etc nominated by the Governor, of which the Director is chairman and which meets regularly once a month and on occasion more frequently. A more specialized board, the Cotton Advisory Board, first appointed in 1961, is consulted on matters affecting the cotton textile industry.
INDUSTRY
M
The general facility with which industry may be established and conducted in Hong Kong has attracted investors. While most industrialists are Hong Kong residents of Chinese race, and the greater part of their capital resources have been self-generated, overseas interests-American, Australian, British, Japanese--have to an increasing extent entered into licensing arrangements with Hong Kong firms and into other forms of industrial co-operation. The variety of goods produced in Hong Kong is now considerable. In general, while heavy industry such as ship-building and ship- breaking continues to be important, the Colony has become best known for the competitive price and range of the products of its light industries, and their rapidly improving quality.