TNAG-1107-FCO40-1358-Inspection-of-the-British-Trade-Commission--Hong-Kong--in-Fe-1981 — Page 9

ADMINISTRATION IN CONFIDENCE

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appears to have been exceptional, the more usual figure being upwards of 1500. The outside visiting programme increased appreciably since the last Inspection. This reflects the larger staff of the China Trade Unit and also an increase in responsive visits which are now being made at a rate of 320 a year compared with 202 in 1979, 188 in 1978 and 111 in 1977.

5. The Departments of Trade and Industry appear satisfied with the service they receive from the Trade Commission. They detect a rising level of interest in Hong Kong from British companies and would not favour any reduction in front-line staff. They consider that the China Trade Unit fulfils an essential role given that a subordinate post in South China now seems unlikely to materialise, but feel that it is generously staffed at present, a point which has been made by the Unit itself. Invest in Britain Bureau of the Department of Industry have forecast an increase in inward investment work in future due to fears about the termination of lease of the New Territories and protectionist measures affecting Hong Kong products.

ORGANISATION AND CONTROL

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6. The DS4 Senior Trade Commissioner heads both the Trade Commission and China Trade Unit. Staff responsibilities are set out clearly on the attached organisation chart. The answers to the BTC Self-Inspection Questionnaire suggest that the post continues to be managed effectively by Mr March and Mr Morrison as it was at the time of the previous Inspection in June 1978. Procedures appear to conform to those laid down in DSP.

7. The China Trade Unit operates as a self-contained commercial section under the guidance of the Senior Trade Commissioner, sharing common support services with the BTC. The Section obtains information from the Embassy in Peking, direct from the Department of Trade and from local sources. Office procedures appear to satisfy the requirements of DSP. The responsibilities of the three officers manning the section are set out in the minutes attached to the SIQS.

FUTURE STAFFING

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Staffing levels in the Trade Commission appear to be adequate to meet the demands of a market whose future continues to look bright. Though commercial visiting is light, the frequent missions, the number of business visitors and good prospects of future project work indicate a full workload.

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Both the China Trade Unit itself and the Department of Trade have drawn attention to the light workload of this section reflecting the fact that China's plans have been scaled down. The Unit have suggested to POD the deletion of the DS7 post. examination of the Unit's workload may indicate that greater savings should be made unless there is an upturn in the Chinese economy.

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ADMINISTRATION IN CONFIDENCE