ENG-1968 — Page 91

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INDUSTRY AND TRADE

are not normally insurable commercially, has now been in operation for two years. Its current liabilities are in excess of $400 million and represent an estimated annual export turnover of nearly $800 million. Exports to some 120 different markets have been covered and business continues to grow at a steady rate as more and more of Hong Kong manufacturers and exporters find it necessary to offer credit terms to their overseas customers to retain existing markets and develop new ones. The corporation has established itself as a significant factor in the development of the Colony's export trade.

Claims paid have underlined the value of this type of government- guaranteed insurance. They have ranged from the inability of im- porters in industrialized countries hit by successive credit squeezes to meet their commitments to losses arising from the shortage of foreign currency in countries affected by war or internal strife. To date the corporation has been able to cover its claims payments and administration expenses out of its premium and investment income.

The corporation's facilities are available for all those who carry on export business in Hong Kong and it is noteworthy that the corporation numbers amongst its customers several overseas companies who have recently set up operations in Hong Kong and who have been accustomed to making use of credit insurance facilities in their home countries.

The corporation has--applied for membership of the Berne Union which is an international association of credit insurance organizations. The regular exchange of information on technical problems and on underwriting experience in particular markets and with particular risks which takes place amongst members should prove extremely valuable for the corporation and, indirectly, for Hong Kong's exporters as well.

INTERNATIONAL ECONOMIC RELATIONS

As the United Kingdom acceded to the General Agreement on Tariffs and Trade on behalf of Hong Kong, the Colony's exports attract most-favoured-nation tariff treatment in the majority of its overseas markets and are protected from discriminatory import restrictions. Nevertheless, difficulties do occur from time to time.