ENG-1971 — Page 66

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INDUSTRY AND TRADE

The overseas circulation of the council's trade magazines con- tinued to increase during the year, particularly in the case of 'Hong Kong Enterprise' (monthly), ‘Apparel' (bi-annually) and 'Toys' (annually). There was also a marked overseas interest in publications such as 'Hong Kong for the Businessman' and 'Industrial Investment Hong Kong' (produced in collaboration with the Department of Commerce and Industry). ‘Hong Kong Enterprise', which is sent to more than 100 countries, increased its monthly circulation to 42,000 copies by the end of the year.

Hong Kong Export Credit Insurance Corporation

The corporation provides protection to exporters against risks of non-payment of their overseas accounts. The risks covered are those arising from the buyer's insolvency or protracted delay in payment or from the occurrence of economic or political causes outside the control of the buyer and the exporter and which are not commercially insurable. The corporation has now been operating for five years and is currently insuring over 700 exporters. Under the policies of insurance issued to these exporters the corporation has assumed a maximum liability of $800 million. This is within the amount of $1,000 million which the corporation is authorised to accept by an amendment to its ordinance during the year, when this figure was increased from $750 million to meet growing demands for cover.

Under the ordinance the corporation is charged to pay its way, taking one year with another. The rise in the rate of business failures, including certain companies in the United Kingdom and the United States hitherto considered 'undoubted' for their engagements, is, however, making it most difficult for the credit insurer to break even over a period.

The increase in the corporation's business during the year is attributable to the increase in the Colony's exports and to a universal trend, in prevailing competitive conditions, for credit terms to lengthen. There is also a growing awareness by exporters of the value of credit insurance in maintaining existing outlets and penetrat- ing new markets, and as an aid to obtaining export finance.

Hong Kong Productivity Council

The Hong Kong Productivity Council was established by statute in January 1967. The council comprises a chairman and 20 members, all appointed by the Governor, of whom 10 members represent management, labour, academic and professional interests, while the