INDUSTRY AND TRADE
Hong Kong Export Credit Insurance Corporation
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The corporation's function is to insure exporters against losses due to non-receipt of payment of their overseas accounts due to causes which are not normally insurable commercially. Its liabilities are guaranteed by the government and it is authorised to assume liabilities up to $1,000 million at any one time. It is at the same time required. to pursue a policy directed towards securing revenue sufficient to meet all its expendi- ture properly chargeable to revenue.
As a member of the international association of export credit insurers (the Berne Union) regular contacts, especially with the Export Credits Guarantee Department of Britain, help in keeping the corporation's support for Hong Kong exporters ahead of needs.
The corporation's protection against the mounting risks of non-payment by overseas buyers and countries is gradually achieving--among Hong Kong exporting companies--the importance attached to this specialised form of insurance by exporters of other trading nations, for whom export credit cover has become an essential factor in commercial life.
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The business of the corporation continued to grow in line with the growth in Hong Kong's external trade and, in the short time since its inception in 1966, it has insured exports of over $4,000 million and paid claims totalling about $13 million.
Substantial claims were paid during the year due to delays in the transfer of pay- ments from overseas, particularly from Ghana. These claims, together with claims for losses due to payment defaults by overseas buyers, resulted in an underwriting loss on the year's operations.
The corporation is advised in the conduct of its business by an Advisory Board consisting of the Director of Commerce and Industry or his representative, the Ex- ecutive Director of the Trade Development Council or his representative and 10 other members who are leaders of the banking and business community appointed by the Governor. The Board held four meetings during the year. One of the many questions of policy on which the Board's advice was sought was the need to introduce measures to facilitate the financing of medium term export business.
Hong Kong Productivity Council
The Hong Kong Productivity Council was established by statute in January 1967. The council comprises a chairman and 20 members all appointed by the Governor, of whom 10 members represent management, labour, academic and professional in- terests; while the other 10 members represent government departments closely associ- ated with productivity matters.
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 organisations engaged in the study and development of productivity techniques in industry; collects and disseminates information relating to productivity; and provides training in productivity techniques.
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