XN000022-1975-11-09 — Page 2

SUNDAY, NOVEMBER 9, 1975

THE AMOUNT OF LOANS ISSUED, THE SPOKESMAN SAID, HAD INCREASED YEAR AFTER YEAR AS A RESULT OF INCREASED COST AND A GROWING TENDENCY TO BUILD LARGER VESSELS WITH BIGGER ENGINE POWER. THE AVERAGE AMOUNT OF A LOAN ISSUED IN 1974 WAS ABOUT $16,000. THE BIGGEST SINGLE LOAN EVER GRANTED WAS $400,000 AND WAS FOR THE CONSTRUCTION OF A MODERN TRAWLER.

INTEREST VARIES FROM SIX PER CENT TO 10 PER CENT PER ANNUM. REPAYMENT IS NORMALLY MADE BY DEDUCTIONS OF 15 PER CENT TO 20 PER CENT OF THE PROCEEDS OF SALE OF CATCHES BY THE BORROWER, THE SPOKESMAN SAID.

THE DEPARTMENT OPERATES LIAISON OFFICES IN TEN FISHING DISTRICTS TO FACILITATE APPLICATIONS AND PROCESSING OF LOANS.

INDIVIDUAL FISHERMEN AND REGISTERED FISHING COMPANIES CAN APPLY DIRECTLY TO THE LIAISON OFFICER IN THEIR DISTRICT AND DISCUSS DETAILS OF THEIR PROJECTS. MEMBERS OF REGISTERED FISHERMEN'S CO-OPERATIVE SOCIETIES MAY APPLY THROUGH THEIR SOCIETIES.

NORMALLY, PROCESSING OF APPLICATIONS TAKES SEVEN TO TEN DAYS, BUT CAPITAL LOANS WILL TAKE MORE TIME TO PROCESS.

THE TWO AGRICULTURAL LOAN FUNDS ADMINISTERED BY THE DEPARTMENT ARE THE J.E. JOSEPH TRUST FUND, SET UP IN 1954, AND THE KADOORIE AGRICULTURAL AID LOAN FUND, SET UP IN 1955.

THE TWO FUNDS HAVE A COMBINED CAPITAL OF $6.5 MILLION. MORE THAN $80 MILLION IN LOANS HAD BEEN GRANTED FROM THE FUNDS UP TO THE END OF SEPTEMBER 1975.

THESE FUNDS ARE TO HELP FARMERS DEVELOP THEIR FARMING ENTERPRISES BY PURCHASING LIVESTOCK, FEED, FERTILIZER. INSECTICIDE, SEED, PLANTING MATERIAL AND FARM EQUIPMENT= TO BUILD LIVESTOCK HOUSING, AND TO CONSTRUCT AND MAINTAIN FISH PONDS.

APPLICATIONS ARE MADE THROUGH THE 11 AGRICULTURAL EXTENSION OFFICES AND GOVERNMENT EXPERIMENTAL FARMS IN THE NEW TERRITORIES. PROCESSING TAKES TWO TO THREE WEEKS.

AT PRESENT THE AVERAGE AMOUNT OF EACH LOAN ISSUED IS LESS THAN $10,000,

INITIAL LOANS UNDER $1,000 IN THE K.A.A. LOAN FUND ARE GENERALLY INTEREST-FREE, WHILE INTERESTS OF THREE PER CENT AND 4.2 PER CENT PER ANNUM ARE CHARGED ON LOANS OF $1,000.OR ABOVE FOR DEVELOPMENT AND RUNNING CAPITAL PURPOSES. FOR ANY LOAN OF $10,000 OR ABOVE- AND FOR ANY LOAN WHICH WHEN AGGREGATED WITH ALL LOANS ISSUED TO THE SAME BORROWER AFTER MAY 1, 1974, BRINGS A TOTAL IN EXCESS OF $10,000 - THE INTEREST IS 4.8 PER CENT PER ANNUM, OR AT THE TRUSTEE'S DISCRETION IF SPECIAL CIRCUMSTANCES APPLY.

/THE J.E. JOSEPH