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amassed considorable information which was of value to the Government in enabling it to direct its commercial policy in the interests of local commerce and industry. A much closer liaison was maintained hetween merchants and Government than had hitherto been possible to
De advantage of merchant houses and the Government. unfortunato if, with the liquidation of that Department, this liaison
It would be were to be abandoned and the knowledge and information which the Department has collected, were to be dissipated and lost. should therefore be made to incorporate those functions of lasting
Provision value of the Supplies, Trade and Industry Department into some permanent Government Department.
Meanwhile the Imports and Exports Department had been resuscitated primarily as a revenue collecting agency, but since it was the only Government Department with an outdoor stuff capable of controlling the actual movement of commodities, it was only natural that many of the functions governing the movement of goods should be brought within its purviow. Consequently the Imports and Exports Department took over the import licensing system, and controlled exports. It has been necessary to maintain a very close liaison with the Department of Solies, Trade and Industry on a daily basis. The system of import and export control has worked well with the minimum of inconvenience To the local merchant houses,
Moreover, the Imports and Exports Department has taken on two other functions which were rather outside its original purview. The control of trade existing throughout the world has made it desirable that there should be some Government agency which overseas merchants can contact, not merely for the purpose of obtaining Government regulations, but also for the purpose of obtaining information about trade conditions generally and of local firms handling particular lines. The Supplies, Trade and Industry Department receive similar enquiries, while the Hong Kong Chamber of Commerce is also invited to offer information on the same subjects. With the establishment of Trade Commissioners in other parts of the Empire, the Commissioners naturally proferred to deal with a Government Department. In addition the Commonwealths are now appointed Trade Commissioners in Hong Kong and their point of contact with the Government has been through the Imports and Exports, and Supplies, Trade and Industry Departments.
Secondly, it has become increasingly obvious that there must be a Department which can advise the Government on matters of economic significanco. In pre-war days Governmont interference in trade affairs was reduced to a minimum and when advice was required it was usually sought direct from the Chamber of Commerce. The increasing interest in economic affairs shown by overseas Governments since the war has, however, made it desirable that there should be a Government Department which sninduiosc ttouchvwith world and local oconomic conditions and which can advise the Government of the best policy to be adopted in any particular instance. This function has been shared by the S. I. E. and D.S.T.I. since the war but it operates on an ad hoc basis, It is highly desirable that one of the recognised functions of this Department should be the collecting and collation of information concerning not merely local economic matters but also those of the Far East and of countries which do a large volume of trade with this Colony
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The above two functions, however, cannot be fully implemented unless there is a much closer and recognised system of liaison with the commercial world, and the undermentioned plan makes provision for such liaison.
III.
THE PROPOSED NEW DEPARTMENT
K
DEPARTMENT OF TRADE AND INDUSTRY
1. OBJECT: The object of these proposals is to institute a Govment agency which, in the first instance, will do what the Imports and Exports Department is doing at present, to absorb such functions of the D.S.T. & I. which are worthy of retention and to instituto now functions, the purpose of which will be to give the Colony an up-to-date and efficient organisation which is in touch with all commercial activities in the Colony and which can advise enquirers
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