ENG-1975 — Page 41

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Industrial Investment Promotion

INDUSTRY AND TRADE

The overseas promotion of industrial investment in Hong Kong was intensified in 1975, with three separate missions going to Australia, Britain and the United States. The first two were joint promotions by the Commerce and Industry Depart- ment and the Hong Kong Trade Development Council, while the mission to the United States was conducted by the department in co-operation with the Hong Kong General Chamber of Commerce, the American Chamber of Commerce and several leading banks. All the missions concentrated their efforts on seeking direct discussions with the top management of pre-selected companies, with a view to acquainting them with the attractions of Hong Kong as an off-shore manufacturing base. Interest generated by the missions was actively followed up and a number of companies have already established, or are seriously considering establishing, manufacturing opera- tions in Hong Kong.

At the end of 1975 there were at least 271 factories in Hong Kong either fully or partly owned by overseas interests-9.7 per cent more than in 1974. They employed a total labour force of about 59,607, or 8.7 per cent of all workers in Hong Kong's manufacturing industries. The total direct investment involved was about $1,730 million. The main sources of investment continued to be the United States, Japan, Britain, Thailand, Australia and Singapore. 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 Industries

The Loans for Small Industries Scheme was implemented in 1972 by the Com- merce and Industry Department in conjunction with the banks and with the co- operation of the Hong Kong Productivity Centre. There was little response from small industrialists in 1975 and, because of this lack of interest, it is proposed that the future of the scheme be reviewed in a year's time. Loans approved since the inception of the scheme total $1.4 million-all authorised before 1975. The scheme was designed to provide medium-term financing at reasonable rates to small factories for modernis- ing their equipment and machines, so as to improve efficiency and output. The little use made of the scheme has cast doubt on the need of small industry for an additional source of medium-term finance for these purposes.

External Trade

Hong Kong's total trade reached $63,304 million in 1975 compared with $64,156 million the previous year. Imports were valued at $33,472 million, compared with $34,120 million; domestic exports $22,859 million, compared with $22,911 million; and re-exports $6,973 million, compared with $7,124 million. Summary foreign trade statistics, including a breakdown by countries and commodities and comparisons with the previous years, are contained in Appendices 3 and 4.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 4.4 million people and the extensive requirements of its diverse industries. Although domestic supplies of agricultural produce and fish are substantial, imported