ENG-1979 — Page 41

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INDUSTRY AND TRADE

development at Yuen Long. Both industrial estates are managed by an independent statu- tory body, the Hong Kong Industrial Estates Corporation, which was established in March, 1977.

The number of sites made available for industrial use outside these estates increased in 1979. A total of 39 sites with an overall area of 90,944 square metres were sold. Special development conditions were attached to nine of them. These conditions called for the provision of heavy loading capacities and high ceilings on certain floors to accommodate certain machinery and, in the case of smaller sites, for 20 per cent of the space provided to consist of units not larger than 75 square metres to cater for small factories.

The government also proceeded with the construction of flatted factory blocks to accom- modate, in permanent buildings, certain squatter workshops and small operators cleared for public purposes. One of these factory blocks was completed in 1979 and another two are expected to be completed in 1980.

Hong Kong industrialists have responded to increasing competition by continuing to modernise their operations and by moving into more sophisticated products. An increasing number of component parts for existing lines are being produced locally, and the quality of finished products continues to improve.

Advisory Committee on Diversification

The Advisory Committee on Diversification was appointed by the Governor to advise whether the process of diversification of the economy, with particular reference to the manufacturing sector, could be facilitated by the modification of existing policies or the introduction of new policies. Its chairman was the Financial Secretary and it included 13 prominent representatives of industry, banking and business circles, and two government officials.

The advisory committee completed its work in 1979 and its report was published at the end of the year. The report detailed the existing government policies which the advisory committee considered should be amended, and the new policies which it advised should be implemented to facilitate the diversification of the economy. The government immediately embarked on a study of the implications of the recommendations contained in the report.

Industrial Investment Promotion

The Trade Industry and Customs Department continued to work closely with statutory and non-statutory trade and industrial organisations in the promotion of industrial invest- ment in Hong Kong. Major activities in 1979 included a series of industrial investment promotion missions to Australia, Britain, Denmark, the Federal Republic of Germany, France, Italy, Sweden, Japan and the United States. These missions were combined, where appropriate, with visits to trade and industrial exhibitions and 'transfer of technology' fairs, and the setting up of exhibition stands to publicise Hong Kong as a manufacturing

centre.

Although most industrial enterprises are Hong Kong-financed and managed, at the end of the year there were at least 427 factories either fully or partly-owned by overseas interests - 11 per cent more than in 1978. These factories employed 83,382 workers or 10 per cent of the total work-force in the manufacturing industry. The main sources of such investments are the United States, Japan, Britain, Switzerland and the Netherlands. The principal industries are electronics and textiles, although there were new investments in other fields including the light and medium engineering industries.