XN000022-1973-11-08 — Page 3

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Thursday, November 8, 1973

The range of manufacturing concerns eligible to seek loans has

been extended by raising the upper limit of applicants' funds from $600,000

to $1 million.

It is believed that the scheme has also been made more attractive

to the smaller firms by introducing a sliding scale of charges for the

feasibility studies conducted by the Hong Kong Productivity Centre to

evaluate the merit of loan applications.

The charges now range from $500 for loans between $30,000 and

$50,000 to $1,000 for loans of more than $100,000.

Less strict requirements concerning the production of audited

accounts have also been introduced.

Mr. Porter said that, although the need for a feasibility study

had come under fire in the past, it was the only practical way of determining

the soundness of loan applications, in view of the fact that no collateral

security is required.

He stressed that the study was designed to protect applicants from

embarking on projects which were likely to lose them money, and to ensure

that they obtained the most suitable equipment available for their specific

needs.

Another reason for it was to avoid exposing the participating banks

to undue risks. This applied equally to public funds, since the Government

is committed to underwriting 50 per cent of any losses.

Mr. Porter commented: "The sliding scale of charges is far from

being excessive. They are well below what it would cost if a firm of private

consultants was engaged to do the job."

He pointed