CO129-622-7 Department of Commerce and Industry- reorganisation and Annual Report 4-4-1949 - 20-2-1950 — Page 47

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and the Government on any aspect of economic activity in Hong Kong together with information on commercial activities overseas. In this connection it should be noted that the Now Department will be the point of contact between the Trade Commissioners appointed by

mpire Governments and the Commercial Counsellors of foreign Consulates and the local Government It should be possible to divert many trade enquiries which are now addressed directly to the Secrétariat on to the New Department, thereby saving the time of the former.

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The Department which might be called the Department of Trade and Industry would be tho normal means of communication between the Hong Kong Government and the Commercial world and it would be the advisor to the Government on Economic and Commercial activities. This would suggest that the proposed Department would have two main functions. The first would be the day to day administration of the Department and the second would bo tho means of croating and maintaining a close liaison with the commercial community in Hong Kong.

2. THE BOARD OF TRADE: Liaison would be maintained with the Commercial would through an advisory Board known as the BOARD OF TRADE, This name may appear somewhat pretentious becuase of the extraordinary number of functions dono by the Department of that name in the United Kingdom and the high prestige it enjoys throughout the world. alternative names would, in effect, be misnomers.

Yet, To call the advisory body an "Economic Advisory Council" would not be correct, since it is not expected to advise on or apply economic theory to the economy of the Colony or to advise what would be the economic effects of any proposed policy. The advisory body would be representative of the various trading interests in the Colony and it would advise the New Department and the Government on how the Trade of the Colony could be extended or the effect of any proposed measures on the trade and industry of the Colony in general. It would not be expected, nor indeed would it be capable, of theorising on measures. It would be eminently a body which is concerned with the application of administrative principles and details, and the practical effects of Government policy from day to day Its very name would bost express its functions, namely the extension of the Colony's trade, which would include all commercial activities carried on in or through the Colony.

3. COMPOSITION OF THE BOARD: follows:-

The Board would be composed as

Chairman - Director of the Department of Trade & Industry. 3 Members nominated by the H.K. General Chamber of Commerce 2 Members nominated by the Chinese Chamber of Commerce.

1 Member nominated by the Chinese Manufacturers Association.

1 Member nominated by the Kowloon Chamber of Commerce. 1 Mombor appointed by the Trade Unions.

It may be argued that the H.K. Genoral Chamber of Commerce being more important than tho other bodies should have a larger ropre sonta- tion. The object of the Board, howover, is to secure representation of the more important trading interests so that thoir views can be obtained and not to give ropresentation according to the importance of the various branches of trade and industry.

The Board should not exceed 9 members in total if it is to work efficiently.

The Secretary to the Board would be the General Secretary of the Department.

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4. FUNCTIONS OF THE BOARD: The functions of the Board could be divided into two broad categories. It would of its own initiative bring to the notice of the Government any matter which it thought desirable on which Government should take action. Such representation might be required in respect of some action which the local Goverment might take or it might be in respect of representations which the Board might require to be taken with some foreign Government or some other part of the British Empire.