ENG-1977 — Page 50

INDUSTRY AND TRADE

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presentation in Tokyo that received wide acclaim from the Japanese trade and mass media. Previously, in March, the same garments had been featured at the annual Hong Kong Ready-to-Wear Festival, attended by some 4,000 trade buyers from more than 30 countries. The festival is now recognised as a leading international fashion trade event.

Other promotional projects mounted during the year included Hong Kong's participation in the Nuremburg International Toy Fair, Cologne International House- ware Fair, Cologne International Hardware Fair, Frankfurt International Spring Fair, Spoga Fair, Leipzig International Trade Fair, Foire de Paris, Budapest Autumn Fair, Cairo International Trade Fair, Chicago Consumer Electronics Show, New York Jewellery Fair, American Toy Fair and Chicago National Sporting Goods Exposition.

The Trade Development Council organised business group visits to the Middle East on four occasions. Groups also toured Western and Eastern European countries, Britain, the United States, Canada, Australia, Malaysia, Singapore and Indonesia. The council helped organise two seminars in which local businessmen took part import seminar in Sydney and an industrial investment seminar in Zurich.

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The Trade Development Council produces four regular publications mainly for circulation overseas. They are the monthly Hong Kong Enterprise, the half-yearly Hong Kong Apparel, the annual Hong Kong Toys and the monthly newspaper The Trader. A documentary video tape designed to promote buyer attendance at the 1978 Hong Kong Ready-to-Wear Festival also was produced during the year.

Hong Kong Export Credit Insurance Corporation

The Hong Kong Export Credit Insurance Corporation was set up by the government in 1966 to help and encourage exporters in overseas marketing ventures. The corpora- tion provides insurance protection for exporters against financial losses they might suffer through not being paid for goods and services supplied on credit to buyers abroad.

The inherent risks borne by the corporation are two-fold: the commercial causes of loss, such as overseas buyers' bankruptcy, insolvency, default or repudiation of contract; and the political causes of loss, such as war, internal strife, import restric- tions and lack of foreign exchange suffered in, or by, the country of destination for Hong Kong goods and services. The government owns the corporation and guarantees all its liabilities.

During the past 11 years, it has not been necessary to fall back on the government's guarantee and the corporation continues to pay its way in a commercial manner, without receiving any subvention or subsidy. Because it is not compulsory for an exporting company to insure its sales abroad, the corporation markets its services like any private enterprise.

The corporation is guided by an advisory board consisting of 12 members who occupy leading positions in the government and in the banking, manufacturing, exporting and insurance communities.

Since it was set up, the corporation has protected exports of goods and services from Hong Kong amounting to some $12.5 million; claims of $35 million have arisen, largely because of the bankruptcy and default of buyers in major and highly-