XN000022-1979-01-03 — Page 3

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WEDNESDAY, JANUARY 3, 1979

THERE WAS A RISE IN BALANCES DUE TO BANKS ABROAD, AND A LESS PRONOUNCED RISE IN BALANCES DUE FROM BANKS ABROAD. THESE MOVEMENTS MAY HAVE REFLECTED TIGHT MONEY MARKET CONDITIONS IN HONG KONG AT THE END OF NOVEMBER, AND THE CONSEQUENT NEED OF A NUMBER OF BANKS IN HONG KONG TO BRING FUNDS IN FROM ABROAD.

AS A RESULT OF THESE MOVEMENTS, AND OF A SLIGHT INCREASE IN THE VOLUME OF LOANS ABROAD, THE NET IDENTIFIABLE FOREIGN ASSETS OF THE HONG KONG BANKING SECTOR FELL BY $1,215 MILLION TO $16,914 MILLION.

GOVERNMENT TAKING THE LEAD IN SUPPORTING LOCAL PRODUCTS

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THE GOVERNMENT IS TAKING THE LEAD IN SUPPORTING LOCAL PRODUCTS MORE THAN TWO-THIRDS OF THE ORDERS FOR COMMODITY ITEMS DURING THE LAST FINANCIAL YEAR WERE PLACED LOCALLY.

DURING THE YEAR, THE GOVERNMENT SUPPLIES DEPARTMENT PLACED ABOUT $300 MILLION WORTH OF ORDERS AND CONTRACTS OF WHICH THOSE LODGED WITH LOCAL ORGANISATIONS TOTALLED $227 MILLION.

OF THESE ABOUT $130 MILLION WERE FOR HONG KONG PRODUCTS.

THE GOVERNMENT SUPPLIES DEPARTMENT IS RESPONSIBLE FOR THE PURCHASE, STORAGE AND SUPPLY OF ESSENTIAL MATERIALS AND EQUIPMENT REQUIRED BY GOVERNMENT DEPARTMENTS AND CERTAIN SUBVENTED ORGANISATIONS.

THE DIRECTOR OF GOVERNMENT SUPPLIES, MR. FRED YOUNG, POINTED OUT THAT THE OBJECTIVE OF ECONOMIC BUYING COULD ONLY BE ACHIEVED BY THOROUGHLY RESEARCHING AND MONITORING THE MARKET WITH A VIEW TO LOCATING THE BEST POSSIBLE SOURCES OF SUPPLY.

+ IT IS THEREFORE ESSENTIAL THAT, TO PROVIDE ULTIMUM VALUE FOR MONEY AND MAXIMUM SATISFACTION TO THE USER, A THOROUGH VALUE ANALYSIS BE CONDUCTED BEFORE LARGE-SCALE BUYING IS UNDERTAKEN,+ MR. YOUNG SAID.

+EXPERIENCE HAS ALSO SHOWN THAT CENTRALISED BUYING IS ESSENTIAL TO ECONOMIC PUBLIC SPENDING, HE ADDED.

AND MR. YOUNG, WHO HAS BEEN IN THE PUBLIC PURCHASING ORGANISATION IN HONG KONG FOR MORE THAN 29 YEARS, SAID THE BEST SOURCE OF SUPPLY IS THE HONG KONG MANUFACTURER.

+HE IS REALLY THE PLUM IN THE BUYER'S PUDDING BECAUSE HERE WE HAVE AN AREA WHERE WE CAN INSPECT THE MATERIALS USED TO MANUFACTURE THE END PRODUCT WE CAN SEE THE PRODUCT IN THE COURSE OF MANUFACTURE AND, WE CAN INSPECT THE FINISHED ARTICLES ON THE MANUFACTURING PREMISES BEFORE PACKING,+ MR. YOUNG SAID.

→WITH THE DIVERSITY OF MANUFACTURERS AVAILABLE IN HONG KONG, HE ADDED, THE GOVERNMENT IS ABLE TO FIND LOCAL MANUFACTURERS FOR A LARGE NUMBER OF THE ARTICLES IT PURCHASES ANNUALLY.+

THERE IS A WIDE VARIETY OF ITEMS PROVIDED BY LOCAL PRODUCERS FOR THE GOVERNMENT SUPPLIES DEPARTMENT.

/THESE INCLUDE