ENG-1974 — Page 33

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INDUSTRY AND TRADE

However, given the number of enquiries received by the Commerce and Industry Department from industrial companies--both local and overseas-whose manufactur- ing operations require large areas of land, Tsing Yi will not be able to satisfy the full potential demand for large industrial sites in the longer term. To provide the necessary additional facilities it is possible that industrial estates will be established in Hong Kong. The suitability of potential sites for such estates at Tai Po, Yuen Long and Junk Bay is now under active examination by an official working party. If it is decided to establish industrial estates in these areas, it is likely that an autonomous industrial estates corporation will be formed to manage them. Draft legislation has been prepared to cover this possibility.

Industrial Investment Promotion

The most common method by which developing countries endeavour to broaden their industrial base and raise the level of their technology, is by seeking to attract foreign industrialists to their shores. Hong Kong is no exception to this general rule. The Commerce and Industry Department has advisory and executive roles where the government's industrial promotion policy is concerned, and works closely with the Hong Kong Trade Development Council to bring Hong Kong's attractions to the notice of foreign industrialists who may be contemplating the establishment of over- seas manufacturing operations. Enquiries generated by this joint effort are followed up intensively by the department, which is able to provide assistance and advice to companies conducting feasibility studies or establishing new plants.

Fewer enquiries were received this year than in recent years. However, this was to be expected, given the generally depressed business conditions in most countries. Nevertheless, a number of worthwhile enquiries were received and appropriate advice and assistance was offered to the enquirers.

Hong Kong's promotional efforts for most of the year were also conducted in a lower key than usual. This arose because the industry division of the Commerce and Industry Department had to divert many of its staff to deal with problems created by the cut-back in crude oil production by the Arab oil producing countries in late 1973/ early 1974. However, by the end of the year promotional activities were again in full swing and an intensified scale of overseas promotion planned for 1975.

At the end of 1974, there were at least 252 factories in Hong Kong either fully or partly owned by overseas interests-an increase of 31 over 1973. These establish- ments employed a total labour force of about 70,264 or 13.2 per cent of total employ- ment in Hong Kong's manufacturing industry. The total direct investment involved was about $1,474.6 million. The main sources of overseas investment continued to be the United States, Japan, Britain, Thailand, Singapore and Australia. The principal industries involved are textiles and electronics although new investment is generally in other fields, such as light to medium engineering and chemicals.

Loans for Small Industry

The loans scheme, which was implemented in July 1972 by the Commerce and Industry Department in conjunction with the banks and with the co-operation of the