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INDUSTRY AND TRADE
efforts being made by many Hong Kong manufacturers and exporters to sell goods of higher quality and greater sophistication will bring them into a field where credit terms are more often demanded by foreign buyers who are probably already receiving such terms from Hong Kong's competitors. Furthermore, exporters can be expected increasingly to turn to this form of insurance as a result of the growing competition which they face from neighbour- ing countries (several of which, including Taiwan, and South Korea, have recently set up or are in the process of setting up export credit insurance schemes to enable their own exporters to be more com- petitive in granting credit facilities).
On April 1, 1970 the corporation entered into a re-insurance agreement with a leading European re-insurance company to lay off part of its increasing liabilities.
Hong Kong Productivity Council
The Hong Kong Productivity Council was established by statute in January 1967. The council comprises a chairman and 20 mem- bers, all appointed by the Governor, of whom 10 members represent management, labour, academic and professional interests. The other 10 members represent government departments closely associated with productivity matters.
The council's terms of reference are wide ranging and are aimed at promoting by all means possible increased productivity of industry in Hong Kong. To achieve this, the council works in close co-operation with other organisations active in this field, in particular with the Hong Kong Management Association, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association, Hong Kong General Chamber of Commerce, the two Universities and the Hong Kong Technical College.
The executive instrument of the council is the Hong Kong Productivity Centre which was formally established on April 1, 1967. The centre co-ordinates the activities of persons and organisa- tions engaged in the study and development of productivity tech- niques in industry; collects and disseminates information relating to productivity and provides training in productivity techniques. Over 60 professional and administrative officers had been appointed to the staff of the centre by the end of 1970.