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ROBRIO & Rohing Rolinco
FOR INTERNATIONAL GROWTH
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World's largest Investment Companies outside U.S.A.
Assets equal HK$8,000, millions.
Capital ROBECO 13,700,00 shares; ROLINCO 9,800,000 shares.
Invested mainly in European, American and Japanose equitios.
Operates from Rotterdam, Holland.
UNIQUE CHARACTER
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No loading charge.
• No salesmen; costs only 0.17% of net
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assets.
Limited liability companies regulated by Dutch law.
Enjoying complete freedom of world-wide investments.
* Price based on daily-calculated asset value.
INTEGRITY
Founded in 1933 ROBECO: 1965 ROLINCO.
Sales rise every, year reflecting public con- fidence.
Complete independence.
Management responsible to and working shareholders.
+ Proven skill in international research,
YOUR OPPORTUNITY FOR INVESTMENT
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Already quoted on 14 Stock Exchanges in Europe.
Now quoted on the Hong Kong Stock Ex- change from 28 September, 1971.
Dealt in as Hong Kong Depositary Receipts. issued by The Hong Kong and Shanghai, Banking Corporation.
Prices published daily in Hong Kong, news-
papers.
Can be easily bought and sold through your stockbroker.
MORE INFORMATION
Post the coupon below to obtain more details of both companies, showing growth of assets, price and dividends. You can then decide which is the suited to your investment requirements. Address to:
P. O. BOX No. 69 HONG KONG
more
Please send me details of ROBECO and ROLINCO
NAME:
ADDRESS:
FEER
so organised that they do not make any profits in Hongkong. Thus they do not pay any corporation profits tax in Hong- kong:
The Liberian government has instituted an inspection system with inspectors based in the world's major ports. This does not mean, however, that ships flying the Liberian flag are unsafe or unseaworthy. Classification societies such as Lloyds demand yearly surveys and a major five-year-survey, Liberian ships, and those flying the flags of many other na- tions, must maintain at least the minimum standards set by these societies for insurance purposes.
The Liberian fleet is one of the world's.youngest. More than 80% of its ships have been built in the last 15 years and have the advantage of the latest in safety equipment and instrumentation. In 1966 Liberia stopped accepting vessels for registration which were built before 1946, and has since set a 20-year age limit on the acceptance of vessels for regis- tration. And according to the financial director of Y. K. Pao's World-Wide (Shipping) group, P. C. Lee, 80% of the company's ships are Liberian registered. The Hongkong Ship- owners' Association estimates Hongkong owners can claim 16 million deadweight tons of shipping either trading or on order. About 70% of this flies the Liberian flag.
Though Liberian vessels must be maintained in a sea- worthy condition to meet the demands of insurers, a point worthy of note is that of the manning of ships. Ships under British registration must have British certificated masters, chief engineers and chief officers. American and Japanese registered ships are required by their governments to carry crews and officers of the nationality of the ships' registration. Operating costs in the form of wages are therefore quite high. Liberian registered ships, however, require only that their masters and chief officers have some kind of certification. The crews of ships registered under flags of convenience can be of any nationality.
Hongkong shipowners generally use Chinese crew. But Chinese crewmen who jump ship in the US have made the hiring and maintenance of Hongkong crews something of a headache. This has forced increasing tendency among mem- bers of the shipowners' association here to recruit crews from the Philippines, South Korea and even Indonesia. Not much money earned by Hongkong ships under flags of convenience finds its way back to the colony. Payments for charter hire are mainly made into New York bank accounts. Hongkong owners do provide employment for local seamen but this seems to be on the decline.
The role of the Japanese government through the Exim Bank in financing construction of new ships has been im- portant to Hongkong owners. But the Hongkong and Shang- hai Banking Corporation has also played an active role in promoting Hongkong-owned tonnage. The bank owns part of World Maritime Bahamas. It has financed new ships as well as second-hand tonnage. The bank's role has been extremely important even crucial in the development of Hongkong as a world shipping centre.
It seems from this Hongkong should be able to establish its own flag of convenience. This is certainly a possibility worthy of serious consideration. Hongkong would then bene- fit from registration fecs not only from Hongkong owners but from others as well. All the conditions are present: com- petent management, an infrastructure of efficient banking and insurance facilities, and a good communications system to back it all up. All that is lacking is a governmental deci- sion coupled with strong legislation. As things stand now, Hongkong benefits little from the 16 million tons of locally- owned shipping.
OCTOBER 23, 1971
FAR EASTERN ECONOMIC REVIEW
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