XN000022-1985-01-14 — Page 7

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MONDAY, JANUARY 14, 1985

TO IMPROVE THE SITUATION, MR YEUNG SAID A COMPUTERISED SYSTEM WOULD BE INTRODUCED SOME TIME THIS YEAR BY WHICH UNDERWRITERS WOULD SET A MAXIMUM COMMITMENT LEVEL AGAINST CERTAIN ACTIVE OVERSEAS BUYERS, SO THAT APPLICATIONS TO INCREASE CREDIT LIMITS UP TO THE LEVEL OF THE MAXIMUM COMMITMENT MIGHT BE APPROVED SPEEDILY, SUBJECT TO CERTAIN SAFEGUARDS BEING MET.

EXPLAINING THE ROLE OF EXPORT CREDIT INSURANCE IN THE HONG KONG ECONOMY, MR YEUNG SAID THAT EXPORT CREDIT INSURANCE CONSISTED OF THE CARRYING OUT OF CONTRACTS OF INSURANCE TO COVER THE INSURED EXPORTER AGAINST RISKS OF MONETARY LOSS, ARISING FROM HIS FAILURE TO RECEIVE PAYMENT FROM THE OVERSEAS BUYER.

MR YEUNG POINTED OUT THAT THE CORPORATION PROVIDED A BASIC INSURANCE COVER FOR EXPORTS, AGAINST THE RISK OF MONETARY LOSS TO THE EXPORTER ARISING FROM HIS FAILURE TO RECEIVE PAYMENT FOR GOODS EXPORTED ON CREDIT TERMS.

AND BECAUSE OUR EXPORTERS AND MANUFACTURERS ARE GEARED TO SUPPLYING WORLD MARKETS WITH CONSUMER GOODS. THE MAXIMUM CREDIT PERIOD OFFERED UNDER OUR BASIC INSURANCE POLICY IS 180 DAYS. #N THE EVENT OF A LOSS THE POLICYHOLDER IS INDEMNIFIED UP TO 90 PER CENT OF THE GROSS INVOICE VALUE OF THE TRANSACTIONS INVOLVED, HE ADDED.

MR YEUNG STRESSED THE NEED FOR DIVERSIFICATION AS IT RELIED ON THE COMPREHENSIVE SHIPMENTS POLICY FOR ABOUT 80 PER CENT OF TURNOVER AND PREMIUM INCOME.

+MY BASIC AIMS IN DIVERSIFICATION ARE TWOFOLD. I AM AIMING, FIRST, TO ACHIEVE FOR THE CORPORATION A MORE BALANCED PORTFOLIO. SECONDLY, IT IS EQUALLY IF NOT MORE IMPORTANT TO BEAR IN MIND THAT WHATEVER NEW EXPORT CREDIT INSURANCE FACILITIES WE MUST DEVISE MANIFESTLY MEET THE CHANGING NEEDS OF THE EXPORT SECTOR,+ HE SAID.

CLOSURE OF BUILDING SOUGHT

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THE BUILDING AUTHORITY DECLARED THIS (MONDAY) MORNING THAT THE FOUR STOREY BUILDING AT NOS. 62-64 CAMERON ROAD, KOWLOON WAS IN A DANGEROUS CONDITION AND SHOULD BE CLOSED.

IT HAD THEREFORE POSTED A NOTICE OF INTENTION TO APPLY FOR A CLOSURE ORDER IN THE KOWLOON DISTRICT COURT AT 9.30 AM ON JANUARY 28, AN AUTHORITY SPOKESMAN SAID.

THE BUILDING, BUILT IN 1950, HAD BEEN DESIGNED AND CERTIFIED FOR OCCUPATION FOR RESIDENTIAL USE, HE SAID.

/HOWEVER,