INDUSTRY AND TRADE
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an overseas promotion. Several of these were produced in conjunc- tion with the Information Services Department.
The council twice collaborated with local organizations. From October 30 to November 5, the Federation of Hong Kong Industries organized a Festival of Fashions and a Hong Kong Week. The council provided funds and some assistance, although the federation undertook all the organization. Hong Kong Week was intended to show both the overseas buyer and the people of Hong Kong the excellence of the Colony's industrial products and to encourage a greater exploitation of the local market. In December the council took part, for the first time, in the Chinese Manufacturers' Associa- tion's 25th Annual Exhibition of Hong Kong products by erecting a display centre. The association provided the exhibits and helped man the stand.
The progress of the Hong Kong Export Credit Insurance Corpora- tion, since its establishment in 1966, proved that there was a real need for this type of government-guaranteed insurance. The corpora- tion provides government-backed insurance at low premium rates against those risks which are not normally insurable commercially, such as foreign governments' laws, orders or other actions which prevent the successful conclusion of an export transaction, and credit risks. Such insurance, which is already provided in 24 other trading countries, will assist exporters to expand existing business and to find new markets for their goods. Although its policies must be approved by the government, which has provided the initial capital of $10 million, the corporation, in the person of a com- missioner, has wide freedom to grant or refuse individual contracts. It is required to operate on a break-even policy and is expected to earn sufficient premium income to cover the payment of claims and other outgoings. The face-value of policies issued is in the region of $600 million and the maximum liability assumed by the corpora- tion is such that the original limit of $300 million had to be in- creased by the Legislative Council on August 23, to $500 million. The type of policy most in demand is the Comprehensive Shipments Policy which protects the exporter/manufacturer against political, economic and del credere risks from date of shipment to date of payment. Interest has also been shown in other types of cover such as re-exports, external trade and capital goods. Premium income