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INDUSTRY AND TRADE
construction of an exhibition/conference centre and supporting facilities including two hotels and a 33-storey office/trade mart tower. The government provided the 2.96 hectare site on the Wan Chai waterfront through a private treaty grant, free of premium. The complex will be known as the Hong Kong International Exhibition Centre. The portion of the development to be retained by the council will ultimately comprise around 73 000 square metres, and will include exhibition halls on two floors, a conference hall seating 3 000 people and an auditorium seating 800.
Hong Kong Export Credit Insurance Corporation
The government-owned Hong Kong Export Credit Insurance Corporation (ECIC) pro- vides protection for Hong Kong's manufacturers and exporters against the risks of non-payment for goods or services supplied abroad on credit terms.
Protection against country and buyer risks is provided by the ECIC at 90 per cent indemnity. Increasing use of the corporation's facilities continued during the year. A substantial increase in business was recorded in line with the recovery in Hong Kong's exports to major industrialised countries.
The ECIC covers all manner of short-term credits and payment methods such as open account invoices, documents against acceptance, documents against payment, and some letters of credit, up to a maximum credit period of 180 days after shipment. The corporation's protection is also available for the export of capital and semi-capital goods sold on medium or long-term credit with payments spread over five years or longer. It provides its clients with a credit control service, and through an international credit information network checks the credit-worthiness of all overseas buyers trading with its policy-holders. Trading and financial records are kept of some 40 000 overseas buyers - the most comprehensive confidential reference library of its type in Hong Kong.
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Bankers who finance exports from Hong Kong also benefit from the corporation's services. Their exporting clients who hold an ECIC policy can authorise the corporation to pay any claims to their financing banks. In addition, to assist in the funding of manufacturers who export capital or semi-capital goods on medium to long-term credit, the corporation is prepared to provide the financing bank with gilt-edged security in the form of its unconditional guarantee. This involves the full payment by the ECIC of any overdue payments plus interest, irrespective of the cause of delay.
As a member of the International Union of Credit and Investment Insurers (the Berne Union), the corporation has access to up-to-date and confidential assessments of the international economic scene, and the techniques used by member nations in support of their export industries.
The corporation's paid up capital of $20 million was provided by the government, which also guarantees the corporation's liabilities arising from its insurance and guarantee operations. The statutory limit now stands at $3,500 million. The corporation does not receive any subvention from the government. In its daily business activities, the corporation resembles private enterprise and markets its services in a commercial manner.
The ECIC benefits from the guidance and advice provided by the 12 members of its advisory board, which currently consists of nine prominent figures from the private business sector and three senior government officials.
During 1984, close to $5.8 billion worth of goods and services were insured by the ECIC, which earned a premium income of more than $32 million. Some 134 claims were paid, involving a total of $18.5 million. A new Comprehensive Shipments Policy was launched during the year providing the corporation's clients with an improved scope of cover.