XN000022-1987-01-14 — Page 17

WEDNESDAY, JANUARY 14, 1987

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CALL TO HELP INDUSTRY THROUGH DEVELOPMENT FUND

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THE SETTING UP OF A HONG KONG INDUSTRIAL DEVELOPMENT FUND+ WOULD HELP IN THE MOVE TOWARDS SERVICE AND TECHNOLOGY AS WELL AS PROVIDE DEVELOPMENT OPPORTUNITIES FOR MEDIUM AND SMALL-SIZED FACTORIES, THE HON CHUNG PUI-LAM SAID TODAY (WEDNESDAY).

HE SUGGESTED TWO METHODS ON HOW THE FUND COULD BE SET UP WHEN SPEAKING DURING THE ADJOURNMENT DEBATE ON DEVELOPMENT OF INDUSTRY IN HONG KONG.

HE SAID A LUMP SUM SHOULD BE TAKEN OUT FROM THE GOVERNMENT RESERVES TO FORM THE FUND WHICH WOULD BE RUN AND MANAGED BY A +HONG KONG INDUSTRIAL DEVELOPMENT FUND COMMITTEE+.

A LEVY COULD BE CHARGED ON EXPORT GOODS TO PROVIDE THE RESOURCES FOR THIS FUND WHICH COULD OFFER MONEY-LENDING SERVICES TO LOCAL INDUSTRIALISTS.

THE FUND COULD ALSO BE SET UP BY ISSUING PREFERENTIAL SHARES AND RUN JOINTLY BY THE GOVERNMENT AND BUSINESSMEN UNDER THE BOARD OF A LIMITED COMPANY. THE MEMBERS OF THE COMPANY COULD BE MADE UP OF CIVIL SERVANTS, BANKERS, AS WELL AS BUSINESSMEN AND INDUSTRIALISTS.

ON THE BUSINESS OPERATED BY THE FUND, MR CHUNG SAID IT MIGHT BE DIVERSIFIED:

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TO OFFER LOANS TO MEDIUM AND SMALL-SIZED FACTORIES AT A PREFERENTIAL RATE FOR THE PURCHASE OF PLANTS, MACHINERY AND EXPORT FACILITIES !

TO MAKE TAKE-OVER ARRANGEMENTS OR ARRANGEMENTS FOR MERGER OF INDUSTRIES ON A SUPPORTIVE CAUSE AS WELL AS OFFERING TRANSFER SERVICE,

UNDER FAVOURABLE CONDITIONS, THE FUND MAY BE FLEXIBLY UTILISED FOR OTHER CAPITAL INVESTMENTS.

BASED ON REASONABLE COMMERCIAL TERMS, THE FUND MIGHT BE USED TO ENCOURAGE INDUSTRIAL INVESTORS BY GIVING OUT AWARDS AS WELL AS FINANCE OR ACQUIRE INDUSTRIAL INVENTIONS.

MR CHUNG SAID HE BELIEVED THAT MORE INDIRECT SUPPORT FROM THE GOVERNMENT WOULD BE USEFUL FOR THE PROMOTION OF INDUSTRY AND WOULD STIMULATE LOCAL ENTREPRENEURS TO INVEST IN NEW TECHNOLOGY, NEW PRODUCTS AND NEW MARKETS.

+ THE GOVERNMENT SHOULD TAKE POSITIVE STEPS TO HELP MIDDLE AND SMALL-SIZED FACTORIES WIDEN THEIR SCOPE OF BUSINESS AND ASSIST THEM TO ACQUIRE NEW TECHNOLOGICAL SKILLS, HE SAID,

/MR CHUNG