CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 12

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Insurance and Claims.

43. Full cover was maintained on all stocks in Hong Kong through a local group of underwriters. Premiums paid totalled $565,637; refund premiums totalled $308,207, leaving a net cost of $257,430. 4,700 bags of rice were lost in the Wing On fire; the claim for $286,000 was settled in full.

44. The Claims Section registered 168 claims totalling $511,304 against shipping companies or under marine insurance policies. Of these 121 valued at $337,275 were successful, and 2 valued at $3,741 were unsuccessful. The remainder were still outstanding at the end of the year.

H.M. Commissioner General for South East Asia. 45. Close liaison was maintained with the Commissioner- General's organisation on all matters connected with rice, edible oils and coal. Hong Kong was represented at 6 out of 8 Liaison Officers' Meetings held at Singapore during the year.

II. TRADE.

Import Control.

46. While imposed under the powers of the Department, import control was in practice operated by the Imports & Exports Department. The Department, however, advised on the allocation of import quotas in the case of goods subject to such control. The list of such goods was substantially reduced during the year.

Export Control.

47. Under the Prohibited Export Order control was maintain- ed on the export or re-export of two categories of goods :—

(a) Commodities subject to international agreements, e.g. rice, tin. Exports were only permitted in accordance with such agreements.

(b) Essential goods, the Colony's supplies of which it was necessary to husband, e.g. building materials. The list of these was kept to the minimum, policy remained flexible and maximum exports was permitted in relation to the current and prospective supply position at the time. It was, however, not always easy to reconcile the conflicting interest of local consumers and of merchants. Export licences for such commodities were issued to a value of about H.K.$220 million or about 15% of the Colony's total exports; the main items were cotton yarn ($51 million), gunny bags ($90 million) and steel ($40 million).

48. The further categories of "Controlled" and "Restricted" Exports were administered by the Imports & Exports Department and Exchange Control, although the necessary orders promulgated under this Department's powers.

were

49. Special arrangements were continued for facilitating entrepôt trade in certain controlled commodities (e.g. flour and sugar) under the Restricted Commodities (Re-export) Order.

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Exchange Control.

50. The Department advised the Exchange Control on the allocation of foreign exchange for imports.

Price Control.

51. The improvement in supplies of a wide range of commodities led to a progressive relaxation of price controls throughout the year. At the same time permitted profit margins were in general reduced in the case of essential goods which remained in short supply and enforcement measures were concen- trated on these.

52. The Price Control Advisory Board continued to meet from time to time.

53. During the year 724 summons for price control offences were taken out and heard in court. Fines imposed totalled $61,065 or an average of about $77 per offence; this was approximately $10 less than the average in previous years.

Trade Promotion.

54. Work in this direction has largely been of a negative nature, that is, restriction of controls to a minimum and rapid operation of such controls as were unavoidable, but it has been possible to do a certain amount in a positive direction although no special section has been established for this work. Representa- tions have been made to secure import quotas of Hong Kong goods into other countries, notably the United Kingdom, and to remove any unreasonable restrictions on trade with Hong Kong. Close liaison has been maintained on all trade matters with Trade Commissioners and foreign Consulates. Routine foreign trade enquiries from merchants abroad have generally been passed to the Chamber of Commerce, but have been answered direct whenever any matter of principle or policy has been raised.

Japanese Trade.

55. One channel of trade on which considerable promotional work was done was trade with Japan. Hong Kong remained outside the Sterling Area Payments and Trade Agreements with Japan and trade was continued on the basis of a balancing open account maintained between Hong Kong and S.C.A.P., ́all commercial transactions in either direction passing through this account. All transactions were at official rates of exchange.

56. While credits earned by exports to Japan were never adequate to satisfy merchant demand for imports, it was possible to provide adequately for all essential imports and at the same time allocate substantial amounts of exchange to merchants for non-essentials; in connection with the latter first priority was given to those who had assisted in building up exchange credits by exports to Japan.