ENG-1983 — Page 60

INDUSTRY AND TRADE

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solely to the insolvency of two European buyers, claims amounting to some $20 million were paid.

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The ECIC covers all manner of short term credits and payment methods such as open account invoices, documents against acceptance, documents against payment, and a range of letters of credit, up to a maximum credit period of 180 days after delivery. The corporation's protection is also available for the export of capital and semi-capital goods sold on medium or long-term credit with instalments over five years or longer. It provides its clients with a credit control service, and through an international credit information network checks the credit rating of all overseas buyers of its policy-holders. Trading and financial records are kept of some 40 000 overseas buyers the most comprehensive confidential reference library of its type in Hong Kong.

Bankers who finance exports from Hong Kong also benefit from the corporation's services. Their exporting clients who hold an ECIC policy can authorise the corporation to pay any claims to their financing bank. In addition, to assist in the funding of manu- facturers who export capital or semi-capital goods on medium to long-term credit, the corporation is prepared to provide the financing bank with gilt-edged security in the form of its unconditional guarantee. This involves the full payment by the ECIC of any overdue instalments and interest, irrespective of the cause of delay.

As a member of the International Union of Credit and Investment Insurers (the Berne Union) the corporation has access to up-to-date and confidential assessments of the international economic scene, and the techniques used by other nations in support of their export industries.

The corporation's paid up capital of $20 million was provided by the government which also guarantees the corporation's liabilities arising from its insurance and guarantees operations. The statutory limit now stands at $3,000 million. The corporation does not receive any subvention and operates on a break-even basis taking one year's results with another. In its daily business activities, the corporation resembles private enterprise and markets its services in a commercial manner.

ECIC benefits from the guidance and advice provided by the 11 members of its advisory board, which currently consists of eight prominent figures from the private business sector and three senior government officials.

During 1983 close to $4.4 billion worth of goods and services were insured by ECIC, which earned a premium income of more than $24 million. Some 129 claims were paid, involving a total of nearly $45 million. ECIC's computer systems were further developed during the year. A new Comprehensive Shipments Policy is being drafted and is to be launched in early 1984.

Hong Kong Productivity Council and Centre

The Hong Kong Productivity Council, a statutory organisation established in 1967, is responsible for promoting the increased productivity of industry in Hong Kong. The council has a chairman and 20 members, all appointed by the Governor, representing management, labour, academic and professional interests as well as government depart- ments closely associated with productivity. It is financed by an annual government subvention and by fees earned from its services.

The executive arm of the council is the Hong Kong Productivity Centre which provides consultancy and technical services ranging from electronic data processing, feasibility studies and production management, to techno-economic studies and technology transfer. It conducts a wide range of training programmes in industrial technology, management

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