工商業管理處年報 Commerce and Industry Department Annaul Report 1956-1957

Library Book No.351.06

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF

COMMERCE AND INDUSTRY

FOR THE

FINANCIAL YEAR 1956-57

PRINTED AND PUBLISHED BY S. YOUNG, ACTING GOVERNMENT PRINTER,

AT THE GOVERNMENT PRESS. JAVA ROAD, HONG KONG

1110

574 COM

1110

MARINE DEPARTMENT LIBRARY

Official Exchange Rates for the H.K. dollar

THE official rate for conversion to pounds sterling is H.K.$16=£1 (H.K.$1=1/3d.). The official rate for converting to U.S. dollars is H.K.$5.714-U.S.$1 (based on £1-U.S.$2.80) but a more realistic, though approximate, rate based on the local fluctuating open market would be nearer H.K.$6-U.S.$1.

Chapter I and Tables 1-4 relate to the calendar year, 1956. The remainder of the report relates to the financial year 1956/57.

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CONTENTS

Chapter

I. THE COLONY'S TRADE AND INDUSTRY, 1956

General

Export of Hong Kong products Industrial Development

Paragraphs

1 15

16 20

21 -

II.

GENERAL REVIEW OF DEPARTMENTAL

ACTIVITIES

General

Supplies and Revenue Division

Control Division

Trade Development Division

Administration Division

Revenue

Expenditure

Public Relations

46 - 47

48 - 50

III. TRADE AND INDUSTRY ADVISORY COMMITTEE

IV. INDUSTRIAL DEVELOPMENT

Industrial Sites

Other departmental activities

Exhibitions and Displays

TRADE PROMOTION

Trade Publications

Miscellaneous

VI. CERTIFICATION OF HONG KONG PRODUCTS

Inspection and Registration of Factories

for Certificates

Certificates of Origin

Imperial Preference Certificates

51 - 56

59 - 65

66 - 71

74 - 75

76 - 80

CONTENTS—Contd.

Chapter

VI. CERTIFICATION OF HONG KONG PRODUCTS

-Contd.

Comprehensive Certificates of Origin

Statistics

VII. OVERSEAS DEVELOPMENTS AFFECTING

HONG KONG'S TRADE

United Kingdom

European Free Trade Area

Canada

South Africa

Federation of Rhodesia and Nyasaland..

British West Indies

United States of America

France and French Overseas Territories.

Western Germany

Indo-China

Indonesia

Overseas Customs Queries

Paragraphs

81 - 84

88 - 89

92 - 94

97 - 98

99 - 100

101

102 - 103

104

105

107

VIII. DUTIABLE COMMODITIES

Revenue from duties

108 - 113

Revenue from licences

114

IX.

STATISTICS

Trade Statistics

Retail Price Index

Assistance to other Departments

115 116

117

118

X. TRADE CONTROLS

Import Licensing

119 - 123

Export Licensing

124 - 127

CONTENTS-Contd.

Chapter

XI. THE PREVENTIVE SERVICE

Development

Discipline

Searches

Adulterated liquor-Methyl Alcohol

poisoning

Dutiable Commodities

Narcotics

Strategic Commodities

Certificates of Origin

Dangerous Goods

Merchandise Marks

Bullion

Court Actions

Paragraphs

128 - 131

132

•

133

134

135

136

137

138

139

140

141

142

143

144

XII. RESERVED CommODITIES AND GOVERNMENT

SUPPLIES

Rice

Frozen Meat

Coal

Firewood

Foodstuffs

Accounts

XIII. BUSINESS REGISTRATION

XIV. THE LONDON OFFICE

Imperial Preference

Frankfurt International Autumn Fair...

United States World Trade Fair

Commercial Relations

Miscellaneous

Public Relations

145

147

148

150

151

152

153

154

155

156

157 - 160

161 - 163

164

165

166 - 168

+ +

169 - 170

• ·

171 - 177

iii

CONTENT S—Contd.

Chapter

XV.

THE TOKYO OFFICE

General

Trade with Japan

Trade Promotion

Trade Fairs

Conferences

Visits

Tourism

Publications

Procurement

Immigration Facilities

Other Activities

Staff

XVI. LEGISLATION

Paragraphs

178

179

180

181 - 183

184

185 - 186

187

188

189

190

191 - 193

194 - 195

196

197

XVII.

DEPARTMENTAL WELFARE

General

198

Housing of Local Officers

199 - 201

Education

202

Canteen

203

Revenue Inspectors' Mess

204

Office Amenities

205

Leave

206

Promotion Prospects for Class V Officers. 207

208 - 210

Sports and Recreation

XVIII. STAFF

General

Staff Changes

211 - 212

213 - 225

LIST OF TABLES

Table

1. Monthly Value of Imports, 1955 and

1956

Monthly Value of Exports, 1955 and

1956

Value of Exports of Hong Kong Products

as classified in Trade Statistics,

Page

(Ch. I)

(Ch. I) 46

1955 and 1956

(Ch. I)

Volume of exports of selected Hong Kong

products, 1955 and 1956

(Ch. I) 48

Organization of the Commerce and

Industry Department

(Ch. II)

Net Revenue collected from all sources

...

(Ch. II)

Certification of Hong Kong Products ... (Ch. VI)

Duty from Dutiable Commodities

(gross)

(Ch. VIII) 52

Revenue from Dutiable Commodities

Licences

(Ch. VIII)

10. Confiscations under the Dutiable

Commodities and Dangerous Drugs Ordinances

(Ch. XI)

11.

Major confiscations under other

Legislation

(Ch. XI)

12. Distribution of Staff

(Ch. XVIII)

፣

BAR

I-THE COLONY'S TRADE AND INDUSTRY, 1956

General.

IN 1956 the total value of Hong Kong's trade rose to $7,776 million, the highest figure since the Korean War.

2. Exports rose by 27% compared with 1955 to $3,210 million. This advance was achieved in spite of a further drop in the value of exports to China.

3. Imports rose by. 23% to 4,566 million, the principal increases being from China, Japan, the United Kingdom and the United States of America.

4. The increases are reflected in the volume figures which, in terms of total trade, were 5,896,367 tons in 1955 and 6,653,088 tons in 1956.

5. A month by month breakdown of the value of imports and exports is shown in Tables 1 and 2.

6. The principal destinations of exports and sources of imports are shown below in order of importance by value and compared with figures for the same countries in 1955:

IMPORTS

EXPORTS

Country

1955

1956

Country

1955

1956

$ million $ million

China, mainland...

898

1,038

Indonesia

193

501

Japan.

526

811

Malaya....

375

373

U. K.

441

513

Thailand

179

320

U. S. A.

325

424

Japan

146

318

Thailand

186

185

U. K.

251

298

Malaya

151

152

Indo-China

126

139

Switzerland

100

132

China, mainland....

182

136

Germany, West.....

128

119

Korea, South

192

125

Belgium

109

U. S. A.

117

Australia...

100

7. The principal imports during the year were: textile yarns and piecegoods, $922 million; textile fibres, $316 million; cereals

and cereal preparations, $275 million; base metals, $265 million; mineral fuels and related materials, $208 million; fruits and vegetables, $200 million; inedible animal and vegetable crude materials, $177 million; scientific and controlling instruments, photographic and optical goods, watches and clocks, $165 million; live animals chiefly for food, $163 million; non-electrical machinery, $122 million; and paper and paper manufactures, $118 million. The principal exports were: textile yarns and piecegoods, $835 million; clothing, $399 million; miscellaneous manufactured articles n.e.s. $165 million; inedible animal and vegetable crude materials, $143 million; manufactures of metals, $135 million; base metals, $121 million; fruits and vegetables, $118 million; and textile fibres, $101 million.

8. China. China continued to be the Colony's largest source of imports, supplying mainly food, cotton textiles and light industrial products, to the value of $1,038 million in 1956, compared with $898 million in 1955; but bought goods to the value of only $136 million compared with $182 million in 1955. Imports were higher and exports lower than in any year since the second World War.

9. Japan. There was a considerable increase in the value of trade with Japan in 1956. Exports at $318 million were 117% higher than in 1955 at $146 million; imports at $811 million were 54% higher than in 1955 at $526 million. Exports consisted mainly of textile fibres, ores and metal scrap (the ores largely from the Ma On Shan iron mine), and oil seeds and oil nuts, while imports were mainly cotton yarn and piece- goods.

10. Indo-China. Imports from Indo-China increased in value compared with 1955 by $41 million to $70 million in 1956, due mainly to considerable increases in imports of mineral fuels and related materials, and of cereals and cereal preparations. Exports rose in value by $13 million to $139 million in 1956, mainly on account of increases in textile yarn, fabrics, made-up articles and related products, and in paper, paperboard and paper manufactures.

11. Indonesia. Indonesia increased her purchases from Hong Kong to a total value of $501 million compared with $193 million in 1955, to become the Colony's most important customer. The chief items were cotton yarn and piecegoods

amounting to a total value of $317 million. Imports from Indonesia were valued at $59 million, an increase of $30 million over 1955, and consisted mainly of mineral fuels and rattan

canes.

12. Thailand. The value of imports from Thailand at $185 million remained at about the same level as in 1955. Of this total, rice alone accounted for $121 million. Exports rose from $179 million in 1955 to $320 million in 1956 and consisted mainly of cotton yarn and piecegoods, base metals and clothing.

13. United Kingdom. Imports from the United Kingdom rose in value from $441 million in 1955 to $513 million in 1956, and the United Kingdom maintained her place as the Colony's third most important source of imports, supplying mainly cotton yarn and piecegoods, machinery, base metals, transport equip- ment and manufactures of metals. Exports to the United Kingdom stood at $298 million in 1956 as against $251 million in 1955; important items were locally manufactured cotton piecegoods, clothing and rubber footwear.

14. United States. Both imports from and exports to the U.S.A. rose in 1956 compared with 1955; imports by $99 million to $424 million, and exports by $29 million to $117 million. Among imports from this country, items showing a large increase in value were textile fibres and pharmaceutical products. Among exports, clothing increased in value by $10.5 million. The Comprehensive Certificate of Origin procedure has considerably assisted the rise in value of Hong Kong manu- factured goods exported to the U.S.A. In 1956 Comprehensive Certificates of Origin were issued to the value of $65 million compared with $47 million in 1955.

15. Malaya. Malaya (including Singapore) dropped from first to second place on the Colony's export list. Both imports and exports remained at about the same level as in 1955; Exports were in 1956 $373 million and in 1955 $375 million; imports were $152 million and $151 million.

Export of Hong Kong Products (classified separately in the

Trade Statistics).

16. The export of Hong Kong products increased in value by 7% from $730 million in 1955 to $783 million in 1956, but the percentage that Hong Kong products bore to the Colony's

total exports dropped from 29% in 1955 to 24% in 1956. A breakdown of these figures is given in Table 3. Table 4 records changes in the volume of exports of the most important local products.

17. Although cotton piecegoods and cotton yarns held their place at the head of the Colony's exports, both recorded a marked fall compared with 1955, amounting to 5% and 3% in value respectively. On the other hand, exports of footwear and electric torches continued at a steady level, while significant increases were achieved in enamelled household utensils, cotton singlets, metal lanterns and iron and steel bars and rounds.

18. The principal destinations of the Colony's products during 1956 are indicated in the Table below in order of importance by value:

1955. $ million

1956. $ million

United Kingdom

139

162

Indonesia

126

Malaya

103

Thailand

West Africa (British)

African Countries, Other

Indo-China

Philippines

U.S.A.

East Africa (British)

Australia

South Africa

Central America

North Borneo

19.

The United Kingdom and Indonesia were the first and second most valuable customers. Increases in cotton piecegoods and shirts were recorded in exports to the United Kingdom, and in cotton singlets, cotton yarn and cloth to Indonesia. Malaya and Thailand bought less than in 1955 but exports to British West Africa continued their steady rise.

20. The production of the Hong Kong Trade Statistics by the Department is dependent on the continued co-operation of merchants, shipping firms and airlines. During 1956 they sub- mitted 700,215 Import and Export Declarations compared with 638,133 in 1955. The total number of manifests (including aircraft manifests) received was 46,270 compared with 41,056 in the previous year.

Industrial Development.

21. Industry generally continued to expand and although there was considerable preoccupation with improvement in quality, design and production techniques, a number of articles new to Hong Kong's industrial scene made their appearance. Among these were reflex and box cameras, hooked carpets and rugs, furnishing fabrics, machine woven fishing netting, electric hair driers, electric refrigerators, wax paper cups, nylon watch straps, polyethylene bags and wrappers and P.V.C. coated twin parallel wire.

22. The total number of factories registered and recorded by the Labour Department increased by 145 to 3,290 at the end of the year, employment in these undertakings rising by over 9,000 to 148,135 compared with March, 1956. The most significant increases in the number of factories occurred in the textile and clothing sections and the plasticware industry. Custom and mail order tailoring assumed the proportions of a sizeable industry and sixteen new garment factories were opened; soft plastic and a wider and more ambitious range in plastic toys and small articles added twenty-two establishments to this section.

23. The cotton weaving and spinning industries retained their leading position by value of exports, and the number of looms increased by some 550 while 10,000 spindles were added.

24. Heavy industries reported an active year and the ship- yards were busily engaged in the construction of a variety of vessels, from 5,790 gross tons down to yachts and smaller craft. The two larger yards alone handled repairs of over 1,550 vessels of various nationalities.

II — GENERAL REVIEW OF DEPARTMENTAL ACTIVITIES

General.

25. No important change occurred in the organization of the Department during the year. An organization chart will be found at Table 5.

26. The removal of the Labour Department from the Fire Brigade Building enabled the Department to acquire additional space which will reduce overcrowding in some of the offices. A number of alterations were required and the opportunity was

taken to have the Department completely redecorated. Work began during the year under report but progress was necessarily slow since only a few rooms could be vacated at one time. work will be completed during the summer of 1957.

The

27. In conjunction with the alterations to the office, a mar- ried quarter and one bachelor quarter for Revenue Inspectors on the top floor of the building were vacated, and work began on the conversion of these into a Revenue Inspector's Mess. In addition to paying for alterations and decoration, Govern- ment approved a generous grant towards the purchase of furniture and equipment. A provisional Mess Committee was formed of officers from the Revenue Inspectorate and the open- ing date for the new Mess was fixed for early in the new financial year.

Supplies and Revenue Division.

28.

An increase in the number of commercial importers of rice was made in January, 1957, and further steps, which will be completed in July, 1957, were taken towards freeing the frozen meat trade from controls.

29. Preparations were made towards handing over the administration of the Business Regulation Ordinance to the Inland Revenue Department at the end of the year and consider- able overtime was worked in this section to overtake arrears.

30.

The administration of the Dutiable Commodities Ordin- ance continued to be the responsibility of the Supplies and Revenue Division. Revenue from dutiable commodities showed a marked increase and exceeded $90 million for the first time. Action to prevent evasion of revenue was intensified, and the Preventive Service played an effective part.

Control Division.

31. No substantial change occurred in the system of import and export controls.

32. The Assistant Director in charge of the Control Division continued to be responsible for the supervision of the Preventive Service. In addition to two new posts of Assistant Chief Preventive Officer, the approved strength of the Service was increased by three new posts of Revenue Inspector, eight of Revenue Officer Class I and thirty-one of Revenue Officer Class II.

These additional posts provided a considerable accession of strength to the Narcotics Section, and also enabled the Industry Section of the Service to increase the number of inspections carried out in connexion with applications for Certificates of Origin and Imperial Preference Certificates. The Prosecution Section was also reinforced.

33. The creation of more promotion posts and an increase in the initial basic salary of Revenue Inspectors helped to raise the morale of the Inspectorate, and a sense of esprit de corps. was enhanced by the prospect of the opening of the Revenue Inspectors' Mess referred to in paragraph 27 above.

34.

In the autumn of 1956 a number of persons died or were blinded as a result of drinking liquor adulterated with methyl alcohol. The Preventive Service was involved in a period of intense activity tracing the source of the adulterated liquor and seizing suspect stocks.

35. Intensive action by the Preventive Service brought about a marked reduction in the attempts by smugglers to carry kerosene out of the Colony.

Trade Development Division.

36. With the relaxation or stabilization of controls of various kinds, the Department has been able to pay increasing attention to the development of the Colony's trade. An important but inconspicuous aspect of these activities was concerned with overseas developments affecting Hong Kong's trade, for which the Trade Development Division was responsible. The Depart- ment attempts to keep in touch with and to initiate counter- action against measures by other territories which have the effect of hampering the Colony's trade. Wherever practicable, the Department itself takes action, usually with the advice of the Trade and Industry Advisory Committee: sometimes it is necessary to enlist the help of the Colonial Secretariat or the Colonial Office. The Colony is usually in a weak bargaining position owing to its absence of tariffs except on a limited range of revenue producing commodities, and its tradition of un- restricted trade unhampered by quota legislation. The more important developments which have occurred during the year are summarized in Chapter VII.

37. The Division undertook the organization of the Colony's participation in trade fairs at Seattle and Frankfurt, the latter in conjunction with the London Office. Close liaison was main- tained with the London and Tokyo offices on a wide range of subjects.

38. A new edition of the Commerce, Industry and Finance Directory was prepared and published towards the end of the year. The monthly Trade Bulletin continued to appear regularly and both publications obtained wide circulation.

39. The steady expansion of the Colony's industry and the need to find new or develop existing markets for Hong Kong's products increased the demand for certification of goods of Hong Kong origin. A growing insistence on Government certificates from overseas customs authorities had a similar effect, and some strain was put on the Certification staff in the Trade Development Division.

40. The continued operation of comprehensive certification procedures for goods exported to the United States helped to restore the Colony's export trade to that country in 1956 to just above its 1952 level, when the adverse effects of the Foreign Assets Control Regulations first began to affect Hong Kong's trade. Procedures for twenty-three additional "presumptive” items were agreed with United States authorities during the

year.

Administration Division.

41. Arrangements were made for the Governor to visit three factories in Kowloon, where he inspected the manufacture of vacuum flasks at Freezinhot Bottle Co. Ltd., of torches at the Chiap Hua Manufactory Co., and gourmet powder and other products at Tien Chu Ve-Tsin Chemical Industries, Ltd.

42. The possibility of raising the status of the Industry Section of the Administration Division to that of a separate Division was forecast at this time last year. The staffing position did not permit of this development, and the Section's responsibilities remain largely the same as those which it under- took during 1954/55. These were mainly concerned with advising on the provision of land for the expansion and redeploy- ment of industry, and with the allocation of official U.S. dollar exchange.

MARINE DEPARTMENT LIBRARY

the

43. Some marked improvements were introduced in methods of storing and accounting for uniforms, stationery and equipment, while a major step forward was taken towards improving the accounting procedure in respect of seized and confiscated goods.

Revenue.

44. Revenue collected by the Department amounted to $109,865,195, or an increase of $14,337,090 over the previous year. This was the first occasion on which the revenue exceeded $100 million. There was an increase of over $12 million in revenue from dutiable commodities which, at $97,299,299, also established a new record. Details are given in Table 6.

Expenditure.

45. Expenditure from Departmental votes amounted to $5,050,349, which was $524,831 under the approved Estimate. Personal emoluments accounted for $4,354,870 out of the total expenditure, an increase of $383,425 over the previous year. The number of posts in the Department increased from 621 to 668, both figures including the staff of the London and Tokyo offices, which total 13.

Public Relations.

46. The Department continued to maintain close and effec- tive liaison with Trade Commissioners and Foreign Consular Officials in the Colony. Advice and assistance were received from the various Chambers of Commerce and the Chinese Manu- facturers' Union, particularly through the medium of the Trade and Industry Advisory Committee which met regularly under the chairmanship of the Director. Local merchants and manu- facturers consulted the Department frequently on a wide variety of topics, and the Department itself sought the advice and assistance of many individuals during the course of the year. The continued co-operation of all these organizations and in- dividuals is gratefully acknowledged.

47. A number of visitors from overseas called at the Depart- ment during the year and assistance was given to them in a wide variety of ways. Among the visitors were members of a Cambodian Government Trade Mission to China, who broke their journey in Hong Kong for a few days during April, and

a Committee from the Guam Legislature which visited the Colony in May to explore trade possibilities between Hong Kong and Guam. Discussions were held with both Missions, and factory visits and other introductions were arranged for them. A delegation of Cotton Spinners from West Germany visited the Colony in October to discuss commercial problems and to visit the Hong Kong textile industry, while the following month visits to factories were arranged for a party of Members of Parliament.

III -- TRADE AND INDUSTRY ADVISORY COMMITTEE

48. The Trade and Industry Advisory Committee has the following terms of reference: -

"To advise the Director of Commerce and Industry on all matters, other than labour, which affect the Colony's trade and industry".

It consists of the Director of Commerce and Industry as Chairman, two members appointed by the Colonial Secretary, and one representative each from the Hong Kong General Chamber of Commerce, the Chinese General Chamber of Commerce, and the Chinese Manufacturers' Union. Members, other than the Chairman, hold office for one calendar year and are eligible for re-appointment. The Secretary of the Depart- ment is Secretary of the Committee. The Chairman is em- powered to co-opt advisers and to appoint sub-committees.

During 1956 the Committee was constituted as follows:- The Director of Commerce and Industry (Chairman). The Honourable Kwok Chan, O.B.E., and

The Honourable Dhun Ruttonjee, O.B.E., appointed by the

Colonial Secretary.

Col. J. D. Clague, C.B.E., M.C., representative of the Hong

Kong General Chamber of Commerce.

Mr. Singnam Choy, representative of the Chinese General

Chamber of Commerce.

Mr. U Tat Chee, O.B.E., representative of the Chinese

Manufacturers' Union.

From January, 1957, Mr. Singnam Choy was replaced by Mr. Allen C. C. Ng as the representative of the Chinese General Chamber of Commerce. From February to October, 1956,

Mr. J. J. Cowperthwaite as Acting Director of Commerce and Industry took over the Chairmanship from Mr. H. A. Angus, who was on vacation leave.

49. The Committee met nine times during the period under review. Valuable advice was given on a wide range of subjects including the Colony's participation in trade fairs; the develop- ment of a new industrial area on reclaimed land at Kun Tong on the mainland; the relaxation of trade controls (both import and export); the possibilities of expanding trade with Central and South America, Vietnam and Cambodia; the scope in the Colony for industrial consultants and designers; the Colony's trade with the United States and South Africa; adulterated liquor; the Commerce, Industry and Finance Directory; the campaign in the United Kingdom against textile imports from Hong Kong and other countries; the proposed European Free Trade Area; the classification of the Colony's trade statistics; and the certification of exports for Imperial Preference rates of duty.

50. Members of the Committee have devoted much time and thought to assisting the Department on a wide range of topics. They have continued to provide a valuable and effective means of liaison with local commercial and industrial interests, and their wise advice, based on a broad collective experience, is gratefully acknowledged.

IV - INDUSTRIAL DEVELOPMENT

Industrial Sites.

51. During the year under review the main activity of the Industrial Section was centred on the need to provide land for the expansion and redeployment of industry, particularly at the Kun Tong reclamation. The Inter-departmental Working Com- mittee on the new industrial area at Kun Tong, under the chairmanship of the Director, continued to function as a plan- ning, co-ordinating and advisory body, and in April, 1956, submitted a revised report to Government. This dealt more fully than the initial report with the problem of preventing a smoke nuisance such as might be a hazard to aircraft using the new airport.

52. After submission of this final report the Working Committee, reconstituted and under new terms of reference,

and renamed the Kun Tong Advisory Committee, continued under the Director's chairmanship to advise Government throughout the year.

53. The Committee's final report was approved by Govern- ment at the end of May, subject to a number of amendments, and in August a public announcement was made through the press outlining the conditions on which sites at Kun Tong would be sold for industrial purposes.

54. The first industrial sites at Kun Tong were sold in September, 1956. By March, 1957, 50 lots, mainly of 10,000 and 20,000 square feet each and aggregating some 650,000 square feet, had been sold to industries in the various groups. Realized prices ranged between $15 and $23.10 per square foot at early auctions, but fell to between the upset price of $5 and $10.40 by the end of the year. No building operations had begun by the end of the year.

55. Difficulties were encountered in formulating terms and conditions for the sale of land at Kun Tong for "flatted" factories and these were not approved until the end of the year under review. No sales took place before the end of March, 1957. Provision of land for this purpose was dictated by the need to accommodate the small ancillary industries which flourish in Hong Kong. Many of these do not require much space, and it would be an uneconomical use of land to permit them to acquire separate sites. "Flatted" factories will consist of buildings not less than five storeys in height, constructed on plots of land ranging from 20,000 to 35,000 square feet in area. The approved conditions of sale require the purchasers of land for this purpose to provide a number of communal facilities such as lavatories, first aid room, cargo ramps or hoists, and drainage, water and electric light and power. This scheme is in the nature of an experiment, but it is hoped that it may provide a solution to the difficulties confronting the owners of small undertakings in their search for suitable accommodation in the crowded conditions of the Colony.

56.

The Industry Section also participated in the planning of industrial development in other areas of the Colony. Close touch was maintained with the Chinese Manufacturers' Union. and several individual industries, and the Section was increas- ingly used as a medium for representing their needs to the

Departments principally concerned with the sale of Crown Land.

Other Departmental Activities.

57. Other activities of the Section included the raw material requirements of industry and the allocation of United States dollar exchange quotas.

58. On the invitation of the Department, a senior partner of a prominent United Kingdom and overseas firm of manage- ment consultants paid a short visit to the Colony in September, 1956, to assess potential demands for the services of his firm among the Colony's industrial and business community. During his stay the consultant had meetings with industrialists, repre- sentative associations and Government officials, and visited several factories.

V-TRADE PROMOTION

Exhibitions and Displays.

59. The two fairs in which Hong Kong participated were the Washington State 5th International Trade Fair, Seattle, (4th to 13th May, 1956) and the Frankfurt International Autumn Fair, (2nd to 6th September, 1956). It was the first occasion on which Hong Kong had exhibited at Frankfurt.

60. At the Seattle Fair, Hong Kong was the largest individual exhibitor, over 1,500 items being displayed on the Colony's stand. All who had seen what Hong Kong did in 1954 at Seattle agreed that the range and quality of goods on show had improved considerably. The official delegation, led by Mr. M. N. Rakusen, M.B.E., E.D., from the Hong Kong General Chamber of Commerce, included Mr. K. S. Kinghorn, Assistant Director, and Mr. T. N. Leigh-Bennett, Trade Officer of the Development Division. After the fair, Mr. Kinghorn visited various cities in the United States on his way to the United Kingdom for vacation leave, and subsequently forwarded a report on trading prospects with the United States, which is of material value to the Department.

61. Space booked for the Frankfurt Fair amounted to approximately 1,900 sq. ft. In addition to a display of general Hong Kong merchandise mounted by the Department, several alcoves in the Hong Kong area were rented to merchant firms

for the transaction of business. Many orders were booked and promising contacts established by firms enterprising enough to rent an alcove. Two hundred and sixty-two business inquiries were recorded at the stand and subsequently distributed to local firms and trade associations. The official delegation was led by the Hon. Cedric Blaker, M.C., E.D., the Government repre- sentatives being Messrs. H. A. Angus, M.B.E., Director of Commerce and Industry, and E. G. A. Grimwood, Director of the London Office. Other delegates were:--Mr. J. B. Kite, Secretary of the Hong Kong General Chamber of Commerce; Mr. J. H. Hamm of Dodwell & Co. Ltd.; Mr. G. C. Moutrie, Manager of the Hamburg Branch of the Hongkong and Shang- hai Banking Corporation; and Mr. I. G. Daniel of Harry Wicking & Co. Ltd. Miss Frances Chan, Executive Officer of the Trade Promotion Branch of the Department, was flown to Frankfurt to help with the detailed work of the fair and proved to be an invaluable assistant on the stand. The part played by the London Office in organizing the Colony's exhibit is described in Chapter XIV.

62. There is no reliable means of assessing the amount of new business which the Colony attracted by attendance at these fairs, but there have been a number of indications, particularly after Frankfurt, that it was appreciable.

63. The Department, as usual, helped the Chinese Manufac- turers' Union with the administrative arrangements for its 14th Exhibition of Hong Kong products, which was opened by His Excellency the Governor on the 29th November, 1956, and lasted just over one month. Many new and improved items were on show. The lay-out of the stands and the quality of goods were a decided improvement on previous local exhibitions.

64. Some assistance was also given to the Hong Kong and Kowloon Clock and Watch Trade Merchants Association, which sponsored the first international exhibition of watches and clocks to be held in Hong Kong, from 15th to 28th February, 1957. Many visitors from overseas attended.

65. Local products displayed on the Royal Interocean Line's vessels "Ruys" and "Tegelberg" were changed each time the ships returned to Hong Kong. In the twelve months during which these ship displays have been on view, a large range of the Colony's light industries were seen by businessmen and

tourists in Mauritius, South Africa and the eastern ports of South America.

Trade Publications.

66. The 1957 edition of the Commerce, Industry and Finance Directory, prepared and issued by the Department, was publish- ed on 18th March, 1957, priced at HK$4.00 locally, but free to business inquirers, chambers of commerce, etc., overseas. The text of the 1955 edition was substantially re-written and re- arranged. It was illustrated by 27 tables and graphs, and contained a classified section; statistical tables were improved and 40 pages of photographs were incorporated. In spite of considerable, but restrained publicity, the response to invitations to advertise in the classified trades section was much less than had been hoped for in a directory with an assured overseas circulation of at least 17,000 of the 22,500 copies printed. Six thousand copies had been distributed overseas by the end of March.

67. Many letters were received from overseas, expressing interest in the information offered in the Department's monthly Trade Bulletin, together with many requests to be put on the regular distribution list. The Cathay Press, which prints the magazine, has taken an especial interest in its design and lay- out, which is much appreciated. Perhaps the best index of the popularity and success of the Bulletin is that the number of advertisements inserted by local firms rose gradually throughout the year. There was an increase also in the number of trade inquiries received from overseas, which are published in the local supplement. The monthly circulation of the Bulletin was about 8,500 copies overseas and 1,300 within the Colony.

68. The leaflet entitled "Notice to United States Importers" was re-designed and printed in booklet form, with appropriate drawings and a coloured cover. Approximately 3,500 copies were distributed to American business organizations and to Hong Kong firms interested in trade with the United States.

69. A special cheap leaflet was prepared for distribution in quantity to the public at trade fairs, giving an impression, by word and picture, of Hong Kong's industry and tourist attrac- tions. The lay-out of the leaflet was designed for insertion of foreign language text; at the 1957 Frankfurt Trade Fair, for instance, the text will be in German.

70. The Trade Promotion Branch of the Department also distributed to selected overseas addressees and to shipping companies 650 copies of the Hong Kong Annual Report 1956. One thousand copies of the Hong Kong General Chamber of Commerce Report for the year 1955 were despatched to con- sulates and chambers overseas.

71. Increasing interest was shown by local businessmen in the trade directories and publications in the Department's commercial library, new editions to which were listed from time to time in the Trade Bulletin.

Miscellaneous.

72. Numerous business inquiries were dealt with, and several minor commercial complaints successfully settled. Contacts and factory visits were arranged for a large number of overseas business visitors who called at the Department.

CERTIFICATION OF HONG KONG PRODUCTS Inspection and Registration of Factories for Certificates.

73. The Industry Section of the Preventive Service continued with the regular inspection of factories registered with the Department for certificates of all kinds, and conducted a number of initial inspections of factories applying to be registered for the first time. Comparative figures of the inspections carried out during the last three years will be found at paragraph 140. At the end of the year, 3,124 factories were registered with the Department, an increase of 604 over the number registered on 31st March, 1956.

Certificates of Origin.

74. A new form of application and supporting declaration for a Certificate of Origin, which had previously been cleared with the principal Chambers of Commerce and the Chinese Manufacturers' Union, was introduced in March, 1957. This entailed a joint application and declaration by both the manu- facturer and exporter which, for the first time, made the exporter equally responsible with the manufacturer, under the Exportation (Certificate of Origin) Regulations, 1953, for the truth of the statements in the declaration.

75. At the same time, the form of the certificates was altered to enable them to be typed on specially designed

machines. These machines register concurrently, by individual factories, the quantity, nature and destination of goods in respect of which certificates are issued. The mechanical tabula- tion of information which has previously been recorded by hand, if at all, has thereby been made possible; the system also provides for rapid manual analysis of the information tabulated.

Imperial Preference Certificates.

76. H.M. Customs & Excise continued to be responsible for the scrutiny of cost statements prepared by approved account- ants in Hong Kong in support of claims to Imperial Preference for goods exported to the United Kingdom. As indicated in paragraphs 161-163, the London Office was involved in consider- able correspondence arising out of such claims.

77. Customs authorities in other Commonwealth countries which grant Imperial Preference rates of duty for Hong Kong products look to this Department to ensure that, when a certi- ficate is issued, it is a valid claim to preference in accordance with the requirements of the country of destination.

78. During the year the Department paid particular atten- tion to securing a uniform code of procedure among public accountants, and circulated a number of instructions to them on points arising in the preparation of cost statements as well as on the procedure for the issue of certificates.

79. On 24th October, 1956, the Exportation (Imperial Pref- erence Certificates) Regulations, 1956, were approved by resolu- tion of the Legislative Council. These Regulations provided for the issue, endorsement, control and regulation of Imperial Preference Certificates by the Director of Commerce and Industry.

80.

In March, 1957, a separate section of the Certificates of Origin Branch was formed to permit closer scrutiny of the cost statements prepared by public accountants in support of claims to Imperial Preference.

Comprehensive Certificates of Origin.

81. The United States Foreign Assets Control Regulations prescribe the entry into the United States of certain types of goods which are presumed to be of Chinese or North Korean origin. It has therefore been necessary, since 1953, for the

Department to operate a special system of certification for such "presumptive" goods originating in Hong Kong and exported to the United States. The procedures are complicated, and strict supervision and inspection is carried out by the Preventive Service.

82. These certificates are of four types-commercial, tourist, gift and sample, of which the tourist certificates continued to form the greater part. The limit on the value of purchases permitted on a tourist certificate was raised from HK$500 to HK$1,500 in September, 1956.

83. New items cleared during the year for export to the United States and its dependencies are listed below:-

Articles made of Formosan seagrass Embroidered footwear components Semi-precious stones

Woollen rugs

Processed shark fins

Lemon sauce

Chinese wine, medicinal (Ng Ka Pey)

Bamboo tablemats

Gunny waste

Textile novelties

Wooden figurines

Lotus seeds

Camphor tablets

Greeting cards and book markers

Cotton cloth and cotton string gloves

Hand embroidered slippers

Frozen spring rolls

Canned pond fish

Frozen oysters

Model junks

Wooden lampstands

Chinese musical instruments

Chinese theatrical costumes

84. In January, 1957, the United States Treasury authorities suspended their acceptance of the procedure designed to ensure that fresh frozen shrimps exported to the United States were not of Chinese mainland origin. Agreement in principle to the adoption of a more watertight procedure had been reached by the end of March.

Statistics.

85. Table 7 compares the number of factories registered for various types of certificates, the number of certificates issued,

and the value of goods certified during the year with correspond- ing figures for the previous year.

86. Revenue from standard certificates of origin and imperial preference certificates amounted to $912,600 compared with $852,590 in 1955/56, and from comprehensive certificates $620,630, compared with $477,792 in 1955/56. Fees to the value of $119,126 were collected for the services of revenue officers in connexion with the issue of certificates.

87. Twelve prosecutions were launched for false declara- tions in respect of certificates of various kinds, and all these cases resulted in convictions..

VII - OVERSEAS DEVELOPMENTS AFFECTING

United Kingdom.

HONG KONG'S TRADE

88. Since 1955, there has been organized pressure from a sector of the Lancashire cotton textile industry to limit cotton. textile imports into the United Kingdom from abroad, especially from India, Pakistan and Hong Kong, or to impose a tariff on textiles of Commonwealth origin. During 1956 a vigorous publicity campaign against Hong Kong textiles in particular was conducted in the United Kingdom press. The Department was kept informed of developments by the Director of the London Office, and by representatives of the textile industry in the Colony, but its action was limited to correcting, through the London Office, the more obvious mis-statements of fact.

89. Towards the end of 1956, the Lancashire Cotton Board sponsored the visit of a mission to India and Hong Kong under the leadership of Sir Cuthbert Clegg. The mission arrived in the Colony in January, 1957, after discussions in India. There was a frank and friendly exchange of views between the mission and representatives of the Hong Kong Cotton Spinners Associa- tion and of the Chinese Manufacturers' Union. The purpose of the mission was to put before Hong Kong's textile manufacturers a suggestion that they should consider the voluntary limitation of cotton textile exports to the United Kingdom. No definite understanding or agreement was reached. Arrangements for the mission's visit were in the hands of the United Kingdom Trade Commissioner, but the department was kept informed of developments by both parties to the discussions.

European Free Trade Area.

90. The United Kingdom's proposals for a European Free Trade Area, to be associated with the formation of a Common Market or Customs Union by France, Germany, Italy, Nether- lands, Belgium and Luxembourg, were closely studied by the Government early in 1957. Hong Kong was among the Colonies represented at a meeting held in March at the Colonial Office. The Department was kept abreast of developments and advised on a number of aspects of the Colony's trade in relation to the proposals.

Canada.

91. Since the end of 1956, the Canadian Tariff Board has been studying the question whether the volume of waterproof and rubber footwear imported into Canada is liable to cause or threaten serious injury to Canadian producers. As its findings may have an important bearing on the local industry, the Department encouraged Hong Kong exporters to make repre- sentations at the preliminary inquiry in Ottawa through their Canadian agents. The United Kingdom Trade Commissioner's office in Ottawa kept Government informed of developments. South Africa.

92. In May and June, 1956, shipments of certain goods of Hong Kong origin to South Africa were held by the Customs authorities there pending investigation of a charge of dumping. The matter was taken up directly with the South African Customs authorities and the goods were unconditionally released in September.

93. The dumping duty on certain types of enamelled hollo- ware from Hong Kong, imposed since the end of 1955, is still in force, in spite of representations to the effect that dumping by Hong Kong within the South African interpretation of the word, is impossible. Dumping duty is being collected in a few cases where invoiced domestic values are regarded as exceeding the f.o.b. export prices by more than 50%.

94. The South African Government's attitude towards the import of Hong Kong goods continues to be a matter of concern. Federation of Rhodesia and Nyasaland.

95. In July, 1955, the Federal Customs Tariffs on certain imports were raised with a view to protecting local industries.

This resulted in a noticeable decline in Hong Kong's export trade with the Federation, especially in cotton piecegoods, shirts, towels, enamelware and electric torches. In January, 1957, the Federation changed the definition of qualifying content for preferential tariff treatment from Commonwealth to single- country content and increased the percentage content required to claim preference for certain piecegoods. These regulations may have further adverse effects on the Colony's trade with the Federation.

British West Indies.

96. Since 1955, the Governments of Trinidad and British Guiana have increased their tariffs on imported shirts of certain types, and the Government of Jamaica has placed restrictions on the import of shirts, knitted fabrics and footwear. These measures, enforced with a view to protecting their local indus- tries, have resulted in a sharp decline of Hong Kong's export trade with these territories.

United States of America.

97. At the G.A.T.T. Session held in Geneva in 1956, reduc- tions in United States tariffs in respect of the following Hong Kong products were successfully negotiated by the United King- dom Government:

Cane webbing, rattan baskets and bags, furniture of wood, preserved ginger, ivory manufactures, and sauces.

98. In February, 1957, the United States National Associa- tion of Shirt, Pajama & Sportswear Manufacturers showed concern over the alleged volume of import of shirts from Hong Kong, and expressed the fear that Japan was violating her self- imposed export quotas to the United States of America by using Hong Kong as a diversionary port. It was pointed out that Japanese shirts and blouses were not being exported to the United States through Hong Kong and that, although the Colony had its own flourishing garment industry, it was unlikely to constitute a threat to manufacturers in the United States.

France and French Overseas Territories.

99. Since the end of 1954 the French authorities have stipulated that goods exported to the franc areas claiming Hong Kong origin must not only be manufactured here but

must also contain a 50% Commonwealth content, and must be supported by a Government certificate of origin based on this abnormal requirement. The requirement itself is being met by the certification section of the department, but representations have been made to alleviate the conditions imposed.

100. The exiguousness of the annual quotas for the import of Hong Kong torches and electric light bulbs into metropolitan France was also taken up officially.

Western Germany.

101. Early in 1956 Western Germany relaxed a number of quantitative restrictions on imports, including rubber footwear. This relaxation did not extend to Hong Kong. Appropriate action was immediately taken by the United Kingdom Govern- ment, as a result of which a higher quota for Hong Kong's exports of rubber footwear was agreed upon.

Indo-China.

102.

In March, 1956, an Assistant Director of the Depart- ment visited South Vietnam and Cambodia with a view to increasing the export of Hong Kong goods to these territories. At the time, it seemed that his visit would bear fruit, but by the end of the year these hopes had not been fulfilled.

103. A trade delegation from Laos visited Hong Kong in October, 1956. The Department helped it to acquire first-hand knowledge of trade conditions in the Colony.

Indonesia.

104. Although not directly concerned with negotiations which were carried out by a Deputy Financial Secretary, the Department was fully informed of an agreement between the Governments of Indonesia and Hong Kong whereby aid funds, made available by the United States, were allocated for the purchase of textiles manufactured in Hong Kong from American raw cotton. The arrangements made were of considerable advantage to an important segment of the industry and work- ing population of the Colony.

Overseas Customs Queries.

105. Close co-operation exists between the Department and the overseas customs authorities of Commonwealth countries, especially those in New Zealand, Rhodesia, Mauritius, North

Borneo, Malaya and Fiji. Doubts or queries about certificates of origin or imperial preference certificates issued by the Department, and on other matters, have been promptly resolved or answered.

106. In January, 1957, the Maltese customs began to insist on a stricter interpretation of their legislation on claims to preferential tariff treatment. The position was at first some- what confused, particularly because letters were sent from Malta by sea rather than airmail. The situation was eventually clarified.

107. The preceding paragraphs illustrate some of the developments overseas which have affected, or are likely to affect the development of the Colony's trade, and with which the Department has been particularly concerned. In dealing with matters of this kind, the assistance of the London and Tokyo offices has been invaluable: details of their activities will be found in Chapters XIV and XV.

VIII DUTIABLE COMMODITIES

Revenue from Duties.

108. Net revenue from duties, as compared with collections in the previous year, are summarized in the following table:

1955/56.

1956/57. $

Tobacco

37,356,960

40,774,038

Hydrocarbon oils

22,051,407

24,477,764

Liquor

20,451,426

24,659,782

Toilet Preparations and

Proprietary Medicines

3,418,036

4,779,955

Table Waters

1,982,960

2,607,760

Methyl Alcohol

$85,260,789

$97,299,299

This represents an increase in 1956/57 of $12,038,510, about 14% above the figure for the previous year. The return from every type of duty was the highest ever recorded. breakdown of these figures is given in Table 8.

A further

109. As usual, tobacco was the main source of revenue, producing over $40 million, an increase of more than $3 million over the previous year.

110. Liquor replaced hydrocarbon oils as the second highest producer of revenue, the increase over 1955/56 being more than

$4 million. This is attributable partly to the fact that this was the first full year in which the higher rates of duty have been in force; and partly to a successful drive against highly organized smuggling. The revenue from duty on hydrocarbon oils rose by over $2 million, mainly owing to a continued increase in the use of industrial and domestic fuels by the Colony's growing population.

111. Measures taken against evasion of duty on toilet prep- arations and proprietary medicines were successful in con- siderably raising the revenue from that source. Although in actual value ($4.7 million) this is comparatively little, the revenue from this head has formerly been, on the average, less than 75% of this year's figure: only part of the increase can be attributed to the general improvement in business in dutiable commodities during the year.

112. Table waters set a new mark by exceeding $2 million for the first time. The revenue of $2.6 million was nearly $.7 million more than the previous year.

113. Towards the end of the year the Dutiable Commodities Ordinance and Regulations were amended to make methyl alcohol dutiable for the first time. The main purpose of this legislation was to control the movement and use of this toxic substance. The duty was imposed on 21st March, but no revenue was realized before the end of the financial year.

Revenue From Licences.

114. Revenue from licences for dutiable commodities shows little variation from that of last year, as may be seen from the table below:-

1955/56.

1956/57.

Liquor

960,716

989,603

Tobacco

373,368

371,557

Hydrocarbon oil

38,692

37,376

Toilet preparations and

Proprietary medicines

139,557

129,220

Table waters

6,522

6,467

$1,518,855

$1,534,223

Further details of licences and revenue derived therefrom are

given in Table 9.

Trade Statistics.

IX STATISTICS

MARINE DEPARTMENT LIBRARY

115. Itemized and summarized trade statistics continued to be compiled within a few days of the end of each month, and throughout the year printed trade statistics were available to the public within a month of the period to which they related. As a first step towards an improvement in monthly trade statistics, the Country Classification was revised to include a wider breakdown of countries, and in December, 1956, mer- chants were required to use the new classification in all declara- tions of imports and exports from 1st January, 1957.

116. Revenue derived from trade declarations, landing certificates, ships' manifests, statistical services rendered to firms, etc. totalled $719,465 during the year.

Retail Price Index.

117. The Retail Price Index figures for the end of each quarter, on the basis March 1947 100, were as follows:

I. Food (including drink)

June

Sept. Dec. March

1956.

1957.

123

139

128

II.

Rent

119

III.

Clothing (including footwear)

...

IV.

Fuel, light & cleaning:

(a) Fuel

(b) Electric light

202

208

100

101

Other items:

(i) Education

140

(ii) Tobacco and Cigarettes

113

(iii) Doctors and Medicines

105

(iv) Fares

100

(v) Household equipment

110

109

110

100

(vi) Hairdressing

122

119

114

(vii) Newspapers & Stationery

153

(viii) Shoe repairs

(ix) Rates

100

General Retail Price Index

117

125

120

Assistance to other Departments.

118. Besides trade statistics, the work of the office included routine services for the Royal Observatory, the Urban Services

Department, the Criminal Investigation and Traffic Branches of the Police Force, returns to the United Nations and its specialized agencies, collection of retail commodity prices and the compilation of the Retail Price Index, and the preparation of the monthly Statistical Supplement to the Government Gazette. Certain minor improvements in the presentation of figures in this Supplement were introduced towards the end of the financial year with the co-operation of the Departments concerned. An analysis of fees paid in schools in the Colony was completed in May, 1956, for the Education Department. In February, 1957, as an addition to the routine services for the Urban Services Department, a beginning was made on housing statistics.

Import Licensing.

X-TRADE CONTROLS

119. The quantitative import control system, which replaced the rather complicated Essential Supplies Certificates system in May, 1955, continued to operate satisfactorily, and controls on imports of minor strategic significance were eased considerably during the year, thus permitting importers to accumulate larger stocks for local use. Strict quantitative or end-use control on goods of high strategic significance was maintained.

120. Apart from the control of strategic goods, import licensing remained in force mainly for exchange control reasons on imports from a very few countries, notably Japan, and for a few commodities such as gold and diamonds.

121. The number of import licences issued during the period under review was 101,224 as compared with 90,660 in 1955/56. Of the licences issued in 1956/57, 31,946 licences were in respect of strategic goods as compared with 25,556 in 1955/56.

122. Almost 50% of the licences issued during 1956/57 were for non-strategic goods from Japan. The relaxation in import control will therefore be substantial when, with effect from 1st April, 1957, Japan, Argentine and Iran are placed on the Open General Licence No. 1.

123. Delivery Verification certificates issued during 1956/57 amounted to 844 as compared with 461 for 1955/56.

Export Licensing.

124. Export controls on strategic materials continued to be strictly applied in accordance with the United Nations Resolu- tion of 19th May, 1951. Local exporters have benefited by the application of exceptions procedures to goods of low strategic significance which may be exported to Mainland China and North Vietnam provided satisfactory evidence of civilian end- use can be produced.

125. As experience was gained of exceptions procedures it became possible to arrive at decisions quickly in respect of less strategic goods although, of necessity, there was occasional delay in dealing with applications for the export of the more strategic items. Exceptions procedures were invoked for many types of goods but the majority of applications were in respect of iron and steel semi-manufactured products for building purposes.

126. Apart from the control of strategic commodities, export licensing was maintained throughout the year on various types of transactions for exchange control or, to a lesser extent, supply reasons.

127. Export licences issued during the period reached a record total of 225,754, comparable figures being 193,991 for 1955/56 and 178,669 for 1954/55.

Development.

XI — THE PREVENTIVE SERVICE

128. The year under review was one of steady progress and consolidation for the Preventive Service, which is the uniformed and disciplined enforcement branch of the Department.

129. The Service was under strength throughout the year and at the 31st March, 1957, it was 39, or over 11%, below the authorized establishment of 347, mainly in the junior ranks. The failure to bring the establishment up to strength was principally due to the difficulty in finding suitably qualified recruits at the salaries authorized.

130. Two new posts of Assistant Chief Preventive Officer were created at the beginning of the year. One of these officers was made responsible for the newly created Investigation Bureau and was also in charge of the Special (Narcotics) Section and the Prosecution Section. The Investigation Bureau quickly proved its value and has become of vital importance in the successful operation of the Preventive Service. The other Assistant Chief Preventive Officer was charged with the respon- sibility of setting up the new Training Section, which provides both recruit and in-service instruction.

131. The trim and workmanlike appearance of the three 70 ft. patrol launches have given cause for favourable comment during the year. The 58 ft. high speed interception launch which is equipped with radar was commissioned on 9th April, 1956, and despite a number of teething troubles has given splendid service.

Discipline.

132. A high standard of discipline was maintained. Nine revenue inspectors and thirteen revenue officers were commend- ed by the Director during the year. Disciplinary punishments were awarded as follows:

Admonishments

Reprimands

Severe Reprimands

Deferment of increment

Termination of Service Dismissal

Searches.

1955/56.

1956/57.

133. A total of 816 ocean-going vessels were inspected and 39,287 native craft searched within and outside the harbour limits as compared with 2,190 and 48,638 respectively for the previous year. Macau ferry boats were also searched daily and aircraft periodically.

Adulterated Liquor-Methyl Alcohol Poisoning.

134. During the year, several persons died and others were permanently blinded as a result of methyl alcohol poisoning caused by drinking liquor adulterated by spirits intended for

industrial use. Intensive investigation by officers of the Pre- ventive Service into the source of adulterated liquor was speedily brought to a successful conclusion, a number of officers being diverted from other duties for this purpose. The investigation revealed that the adulterated liquor came from dealers who, in order to evade liquor duty, purchased quantities of duty free industrial methyl alcohol, a poisonous substance, watered it down and mixed it with Chinese liquor; they then sold the poisonous mixture to retailers who, in turn, sold it to the public for consumption as Chinese wine. A number of successful prosecutions followed, and the Dutiable Commodities Ordinance and Regulations were amended in order to facilitate the control of methyl alcohol which was made dutiable, with provision for exemption by denaturing to the Government Chemist's satisfac- tion.

135. During the course of the investigations, the Government Chemist and his staff were asked to analyse a large number of samples of suspect liquor and the Department is indebted to them for their untiring co-operation during this period.

Dutiable Commodities.

136. The control of dutiable commodities continued to be the main work of the Preventive Service. Seizures of tobacco, liquor, proprietary medicines and toilet preparations were main- tained at a high level; see Table 10.

Narcotics.

137. Seizures of narcotics were high and the newly formed anti-narcotics section fully justified itself; details of confisca- tions by the courts are given in Table 10. Close co-operation was maintained between the section and the Narcotics Bureau of the Police Force.

138. Narcotics were located chiefly in vessels arriving from Bangkok. In one instance 233 lbs. of raw opium were finally discovered after two days' intense searching in the bilges of a vessel. A total of two hundred and forty-one pounds of raw opium were found on two separate occasions in water tanks supplying crews' toilets. A weather bridge on deck was used to conceal 52.8 lbs. of raw opium, while 39.6 lbs. together with

5 lbs. of morphine were found in a hawser drum. A total of 466.2 lbs. of raw opium was found in two vessels in one month. Seven and three-quarter pounds of morphine were detected in postal packets, and 4 lbs. in premises thought to be illegally manufacturing proprietary medicines.

Strategic Commodities.

139. The smuggling of strategic commodities declined con- siderably during the year and, consequently, the number of seizures made was much smaller than previously. This decline was due partly to the effectiveness of the Colony's export con- trols and partly to the increased application of exceptions procedures for goods of relatively low strategic value (see paras. 124 - 125).

Certificates of Origin.

140. The following comparative table shows the increase in the number of inspections carried out by revenue officers in the Industry Section:

1954/55 1955/56 1956/57

Dangerous Goods.

13,180

24,252

42,735

141. Forty-three tons of kerosene and 4.8 tons of petrol were seized and confiscated. These quantities were discovered either illegally stored or being conveyed illegally in urban and rural

areas.

Merchandise Marks.

142. Four infringements were detected as against eight in the previous year.

The offences concerned the trade description

of skin lotion, Chinese medicine and ladies' gloves.

Bullion.

143. Gold seizures totalled 390.81 lbs. in various forms. One hundred and eleven pounds were found under the decking of a vessel bound for Indonesia and another large seizure of 134.16 lbs. was made in a paint locker of an ocean-going vessel. The fact that only 80.583 lbs. of gold were confiscated to the Crown during the year was due to delays in the completion of cases before the courts.

Court Actions.

144.

The year under review proved to be a busy one for the Prosecution Section as may be seen in the following comparative

table:

Total actions Total arrests

Total fines

1956/57.

1955/56. 1,283

2,742 638

783 $202,102 $211,009

An indication of the major confiscations ordered by the courts, other than of dutiable commodities and dangerous drugs, is given in Table 11.

XII - RESERVED COMMODITIES AND GOVERNMENT SUPPLIES

Rice.

145. As from 1st January, 1957, the existing list of 29 approved commercial importers of rice was extended by the addition of 9 new importers with the object of increasing local competition. No changes were made in the Government rice control scheme itself other than to increase the basic quotas from 60,000 to 66,000 tons per quarter and the stockholding commitment from 35,000 to 38,500 tons, with effect from the same date. An optional 10 per cent addition to basic quotas was offered to the importers in each quarter of the year and was taken up in full on all occasions, thus enabling the market demand to be satisfied.

146. Total imports of rice during the year ended 31st March, 1957, were 294,425 tons, as compared with 258,696 tons in the previous financial year, as follows:

1955/56.

1956/57.

Source.

M/Tons.

Thailand

154,780

59.8

208,340

70.8

China

41,843

16.2

56.838

19.3

Burma

48,423

18.7

22,443

7.6

Cambodia

2,360

0.9

4,209

1.4

N. Vietnam

2,013

0.7

East Africa

230

0.1

252

0.1

United States

200

0.1

Australia

130

Pakistan

11,040

4.3

258,696

100.0

294,425 100.0

147. Prices generally tended to be higher than in the previous year, due to higher f.o.b. costs and increased freights,

but the consumer was able to offset the higher prices to some extent by buying a larger proportion of broken rice which is cheaper than whole rice. There was less local criticism, in the year under review, of the Government rice control scheme which may be said to have worked successfully throughout the period in providing adequate supplies at reasonable prices.

Frozen Meat.

148. Certain minor modifications in the frozen meat control scheme were introduced with effect from 1st October, 1956, in order to simplify administration. It was subsequently decided in December, 1956, that there was no need to continue the scheme after 1st July, 1957, and a public announcement to that effect was accordingly made. Restrictions on the importation of frozen meat were removed as from 1st January, 1957, but sales within the Colony were confined to the existing quota holders until 1st July, 1957. Frozen meat remained a "reserved commodity", how- ever, and importers were required to be approved by and regis- tered with the Department. Import and Export licences were still required for frozen meat entering or leaving Hong Kong.

149. Total imports of frozen meat during the year 1956/57 were 8,429 tons, as follows:

Source.

Beef.

Mutton. Pork. Offals.

Total L/Tons.

Australia

3,596

413

4,110

New Zealand

219

254

China

850

192

548

793

2,383

U.S.A.

1,489

1,514

Canada

Holland

104

132

South America

Japan

Total L/Tons

4,483

610

933

2,403

8,429

150. The consumption of frozen meat is directly related to the availability of fresh meat supplies, but during the past two years the total consumption of meat of all kinds has increased very considerably, as shown by the following figures:

1956/57.

Fresh Meat Frozen Meat

Total

1954/55. 1955/56.

L/Tons.

23,145

34,832

30,109

3,116

3,166

7,390

26.261

37,998

37,499

Coal.

151. No restrictions were placed on the coal trade during the year. Total imports in 1956/57 amounted to 199,017 tons, as compared with 220,961 tons in the previous year:

Source.

China

Japan

North Vietnam

Australia

Taiwan

India

1955/56.

1956/57.

L/Tons.

26,835

12.1

143,066

71.9

139,107

63.0

49,455

24.8

16,024

7.2

3,090

1.6

608

1,936

1.0

23,148

10.5

1,470

15,239

6.9

220,961

100.0

199,017

100.0

Prices of coal increased progressively throughout the year due partly to increased freight rates and partly to labour troubles in Japan.

152. Coal remained a "reserved commodity", Import and Export licences being required for all supplies entering and leaving the Colony.

Firewood.

153. The maintenance and turnover of the Government fire- wood stockpile was satisfactorily carried out during the year in the face of supply difficulties arising mainly from the shortage of shipping space between North Borneo and the Colony. In order to improve the supply it was decided to import a certain quantity of Penang mangrove wood.

154. Total imports of firewood during the year 1956/57 were as follows:

Commercial Imports

Total

Government

Source.

Imports

Tons.

China

137,155

Malaya

25,360

2,898

22,462

North Borneo

13,709

8,081

5,628

Others

176,234

10,979

165,255

Nine thousand three hundred and sixty-six tons of Government firewood were sold in the year ended 31st March, 1957, at an average price of $4.86 per picul as compared with 10,679 tons at $4.64 per picul in the previous year.

Foodstuffs.

155.

Reserve stocks of certain essential foodstuffs continued to be maintained and turned over during the year.

Accounts.

156. The net expenditure on maintaining the Government stockpiles for the year was $1,148,138.92, being the difference between expenditure on supplies, storage, etc., and the proceeds of sales. After revaluation of the stocks at 31st March, 1957, on the basis of the market value or original landed cost, which- ever was the lower, the net loss for the year was $1,278,191.22.

XIII - BUSINESS REGISTRATION

157. Good progress was made during the year in the Business Registration Office, particularly in overtaking arrears which had accumulated owing to the large number of appeals received for remission of fees. Each of these applications had to be separately investigated before a decision could be given, which added greatly to the difficulty of collecting revenue under the Business Regulation Ordinance. The number of appeals for reduction or remission of fees granted during the year was 28,053 compared with 9,983 in 1955/56.

158. The numbers of certificates issued and the revenue collected annually in respect of Business Registration fees since the Ordinance came into force in 1952 are as follows:

1952/53

1953/54

1954/55

1955/56

1956/57

No. of Certificates Issued. Originals. Renewals.

Revenue.

25,460

5,757,927

9,368

7,539

3,582,549

4,500

31,637*

7,442,621*

5,915

27,676

5,455,788

10,509

40,537

6,415,922

*including renewals from 1953/54.

159. It was found necessary during the year to increase the number of prosecutions for recovery of unpaid fees, and these totalled 1,124 as compared with 127 for the previous financial

year.

160. The Department of Commerce and Industry ceased to be responsible for the administration of the Business Regulation Ordinance after 31st March, 1957. The Commissioner of Inland Revenue assumed that responsibility on 1st April, by which

date the Business Registration Branch was established in new premises at Fung House.

XIV - THE LONDON OFFICE

Imperial Preference.

161. Several thousand inquiries from United Kingdom mer- chants, Hong Kong accountants, and Hong Kong manufacturers and merchants were dealt with in connexion with claims to relief from duty under the Imperial Preference regulations in respect of Hong Kong products. The office record of individual claims, now approaching seven hundred, was greatly assisted by H.M. Customs and Excise who provided 1,100 copies of letters written to Hong Kong accountants so that details might be recorded. Similar action by Hong Kong accountants with their letters to the Customs authorities in the United Kingdom has enabled the Office to maintain a valuable Imperial Preference card index.

162. During the year H.M. Customs were consulted, in particular, about the importation of hand-worked embroidery and coconut candy into the United Kingdom under claim to Preference, as well as on variations to existing claims to Pref- erence for standard items of Hong Kong origin.

163. The Office conducted correspondence with H.M. Customs in connexion with certificates of origin for raw materials exported from the United Kingdom for use in the manufacture of Hong Kong products.

Frankfurt International Autumn Fair.

164. The Office was responsible for the London and Frank- furt portion of the organization for Hong Kong's participation at the Frankfurt International Fair in September, 1956. The space taken amounted to approximately 1,900 square feet- almost double that taken at the British Industries Fair. Pre- liminary arrangements were made early in 1956 and in July of that year the Director of the London Office paid a short visit to Frankfurt to hold conversations with stand designers, Fair officials and transport agents. The selected stand designer produced an excellent construction and the Department des- patched a wide range of exhibits. Hong Kong's first venture onto the Continent was most successful. Two hundred and

sixty-two trade inquiries were recorded and despatched direct to the Department in Hong Kong.

United States World Trade Fair.

165. Before the end of the financial year arrangements were well in hand in connexion with Hong Kong's participation at this Fair in April, 1957. The Director of the London Office met Fair officials, transport agents and stand designers during a preliminary visit to New York in December, and plans were subsequently discussed in Hong Kong with the Trade and Industry Advisory Committee and the Department.

Commercial Relations.

166. Over one thousand introductions were made during the year. It was possible to satisfy most inquirers from a detailed card index but, where necessary, further information was sought and obtained from the Department. In addition, details were sent to the Department for inclusion in the Trade Bulletin. These inquiries covered practically the whole range of Hong Kong products.

167. The Office provided statistics and other information to interested parties, notably on the timber, rubber footwear, enamelware, and hat industries.

168. Thirty claims against Hong Kong suppliers were referred, after analysis, to the Department for investigation-a slight decrease on last year. Most were settled, without litiga- tion, to the satisfaction of both sides.

Public Relations.

169. Criticism in the United Kingdom press continued, and was principally directed against the imports of Hong Kong textiles into the United Kingdom. Other industries which were criticized in the press included rubber footwear and plastics. The office gave assistance to organizations, the press, and individuals in the preparation of articles about Hong Kong.

170. The Office continued to supply literature about the Colony to schools, societies, businessmen, lecturers, and mem- bers of the general public. Several hundred inquiries from individuals proposing to take up appointments in the Colony were also dealt with. The Director of the Office addressed a London branch of the International Friendship League.

Miscellaneous.

171.

The Governor visited the Office during the year.

172.

The Office put some twenty inquiries to the Board of Trade about items of merchandise affected by the United Nations' embargo on the export of strategic commodities to China.

173. Several meetings took place in connexion with a visit to Hong Kong of a representative of a prominent firm of management consultants (see paragraph 58).

174. Assistance was given to the Hong Kong Chinese Manu- facturers' Union by publishing in United Kingdom journals advertisements concerning the Fourteenth Annual Exhibition of Hong Kong products.

175. The Director concluded a term of office as Chairman of the Steering Committee charged with the selection and preliminary organization of a property suitable for use as a residential hostel in London for Hong Kong students, and is now Vice Chairman of the Board of Governors. During the year the premises were finally brought under Government control and the Office is now supervising the building work being under- taken and is responsible for the executive action required by the Board of Governors.

176. During the year the Office received approximately 7,000 letters and wrote 6,000. Over 1,200 visitors were interviewed.

177. The Staff of the Office consists of the Director, Assist- ant Director, Senior Clerk, Shorthand Typist, Copy Typist and Office Junior. During April, 1956, the office moved from the second to the sixth floor of Grand Buildings, Trafalgar Square, London, W.C.2.

General.

XV - THE TOKYO OFFICE

178. Representation of the Colony's commercial interests in Japan continued to be the function of the Hong Kong Govern- ment Representative who is concurrently the Head of the Hong Kong Section of the British Embassy in Toyko. The office of the Section is located at Naka 8th Building, Marunouchi, in the centre of the business district of Tokyo.

179. The main activities of the Section were the furthering of Hong Kong's interests and presenting its views in all matters

relating to trade and commerce, as well as the general promo- tion of trade and the dissemination of information about the Colony.

Trade with Japan.

180. Trade between the Colony and Japan which had, during the post-war era, expanded by leaps and bounds, showed a considerable gain in both imports from and exports to Japan during 1956. Imports were up in value by 54%, while exports rose by 117% compared with the previous year. Hong Kong became Japan's second best customer for its exports in 1955 and maintained the same relative position in 1956.

Trade Promotion.

181. Trade inquiries, and requests for advice and assistance, were received from Hong Kong merchant houses and their branches and representatives in Japan, from industrial and commercial organizations in the Colony, from Japanese indus- trial and commercial firms and organizations, and from business visitors from, and firms in, other countries. Inquiries by mail concerning many aspects of the Colony's trade and industrial activities were received from many countries while the number of visitors who called in person at the Section for interviews exceeded 300 a month.

182. Commercial introductions were numerous and the Section arranged visits to factories and meetings with leaders of trade and industry organizations for business visitors from the Colony.

183. Assistance was rendered in a number of commercial disputes between firms in Hong Kong and Japan, with a view to bringing about an amicable settlement of claims.

Trade Fairs.

184. The Head of the Hong Kong Section, as the Govern- ment's Representative in Japan, accompanied a delegation from the Chinese Manufacturers' Union to the Japan International Trade Fair at Osaka in April, 1956, and attended meetings arranged for the delegation with chambers of commerce and other commercial and trade institutions in Japan.

Conferences.

185. The Head of the Hong Kong Section was nominated as a member of the Colony's delegation to attend the E.C.A.F.E.

Conference which opened in Tokyo on the 29th October, 1956. The opportunity was taken to distribute trade and other litera- ture about Hong Kong to the delegations from other countries which attended the conference.

186. The Head of Section was invited to attend meetings of the Executive Committee of the British Chamber of Commerce in Japan, and was also present as an observer at various trade conferences held in Japan.

Visits.

187. The Hong Kong Government Representative visited the Republic of Korea in connexion with trade between that country and Hong Kong. He also made periodical visits to the indus- trial areas of Japan, and twice visited the Colony.

Tourism.

188. Numerous inquiries were received, mainly from foreign nationals visiting Japan, concerning tourist facilities and immigration requirements in the Colony. Information supplied by the Public Relations Officer was most useful in answering these inquiries, and his pamphlet "Hong Kong" was in great demand.

Publications.

189. Publications such as the monthly "Trade Bulletin", the "Commerce, Industry and Finance Directory", and the "Hong Kong Annual Report" were distributed to inquirers who sought information concerning trade with, and information about, the Colony. These publications together with Hong Kong news- papers and magazines were also made available to visitors in the reading room.

Procurement.

190. The Section undertook the procurement of a wide variety of goods for Hong Kong Government departments.

Immigration Facilities.

191. The greatly increased trade between the Colony and Japan was reflected in a corresponding rise in the number of applications for entry into Hong Kong by Japanese businessmen to whom nearly 3,000 visas were granted during the year, being treble the number issued in the previous year. There was also

a marked increase in the number of Japanese firms establishing branch offices in the Colony and of Japanese artisans rendering technical assistance to Hong Kong industries.

192. Approximately 150 applications from Ryukyuan nation- als desiring to visit the Colony on business were dealt with by the Section.

193. Entry facilities into the Colony were cleared on behalf of 1,200 Chinese nationals temporarily resident in Japan, and advice and assistance was given to a large number of Chinese businessmen from the Colony to enable them to extend their stay in Japan to conduct business.

Other Activities.

194. Liaison was maintained with Ministries, the Commer- cial Sections of Embassies and Legations, Chambers of Com- merce and other organizations in Japan.

195. The assistance given to the Section by the Japanese authorities and, in particular, by the Ministry of International Trade and Industry is gladly acknowledged.

Staff.

196. The office staff consisted of the Head of Section and six Japanese nationals.

XVI — LEGISLATION

197. The following amendments and additions to existing legislation were passed during the year:

Ordinance No. 30 of 1956.

G.N. No. A 46 of 1956.

G.N. No. A 69 of 1956.

Dutiable Commodities

(Amendment) Ordinance, 1956. Dutiable Commodities (Amendment) Regulations, 1956. Importation (Automatic Machines) Regulations, 1956.

To revise and simplify the system of licensing for the sale of intoxicating liquors in the Colony.

These Regulations, in re- placing the Importation of Automatic Machines Order, prohibited the im- portation of automatic machines, whether coin or disc operated or not, ex- cept under permit; but machines reproducing music or speech (e.g. juke boxes) were freed from restriction.

G.N. No. A 90 of 1956.

Ordinance No. 46 of 1956.

G.N. No. A 100 of 1956.

G.N. No. A 119 of 1956.

Ordinance No. 62 of 1956.

G.N. No. 1673 of 1956.

Ordinance No. 2 of 1957.

G.N. No. A 2 of 1957.

G.N. No. A 29 of 1957.

Prohibited Exports (Amendment) Order, 1956.

Importation and Exportation (Amendment) Ordinance, 1956. Exportation (Imperial Preference Certificates) Regulations, 1956. Dutiable Commodities (Amendment) (No. 2) Regulations, 1956.

Dutiable Commodities (Amendment) (No. 2) Ordinance, 1956.

Revised Hong Kong Import and Export Classification of Countries List.

Business Regulation (Amendment) Ordinance, 1957. Business Regulation (Amendment) Rules, 1957, Proclamation No. 2 of 1957.

MARINE DEPARTMENT LIBRARY

The Prohibited Expor Order, 1946 prohibited the export of certain scarce commodities except under permit. This amendment freed these commodities from control, but imposed a similar control over raw and granulated borax.

The provision of legisla- tive authority for the issue and endorsement of Imperial Preference Certi- ficates.

The Regulations provided for the waiving of land- ing certificates and import duties in certain circum- stances, obliged whole- salers of tobacco and liquor to keep records in the same manner as re- tailers, and amended the provisions for bonded storage of dutiable air- craft stores at Kai Tak.

The main objects of this amendment were

were to in- crease the penalties for dealing in adulterated liquor which is injurious to health, and to extend the power of forfeiture and seizure in respect of adulterated spirituous liquors.

The revised list enabled the Department to com- pile details of trade with a larger number of coun- tries and areas for publication in the Hong Kong Trade Statistics. These enactments au- thorized the transfer of the Business Registration Office from the Depart- ment of Commerce and Industry to the Inland Revenue Department and amended the form registration certificate.

Ordinance No. 5 of 1957.

G.N. No. A 23 of 1957.

G.N. No. A 27 of 1957.

G.N. No. A 32 of 1957.

General.

Dutiable Commodities

(Amendment) Ordinance, 1957. Dutiable Commodities (Amendment) Regulations, 1957. Resolution by Legislative Council under section 4 of the Dutiable Commodities Ordinance, (Cap. 109): Amendment of General Licence No. 1.

The main object of this legislation was to prevent the use of methyl alcohol in the preparation of liquor intended for human consumption.

Import Licences no longer required for general mer- chandise imported from Argentine, Iran and Japan.

XVII — DEPARTMENTAL WELFARE

198. The departmental welfare officer, an Assistant Director, continued to be available for approach by officers who wished to discuss matters connected with their own or their family's welfare.

Housing of Local Officers.

199. With the assistance of the welfare officer an application from 30 members of the staff to form a co-operative building society was forwarded in October, 1956. The site applied for by this group of officers has been provisionally reserved for them, but Government's formal approval of the scheme had not been received by the end of the year.

200.

Other officers in the department who were about to take possession of flats built under another co-operative scheme applied for and were granted loans to cover the cost of furnish- ing their new quarters.

201. Five flats in Kowloon were allocated to the Depart- ment as departmental quarters and these are occupied by non- expatriate Revenue Inspectors and Revenue Officers.

Education.

202. Assistance was given to various officers in placing their children in Government schools. Messengers and office attend- ants were encouraged to take English classes at the Evening

Institute of the Education Department, and clerical staff to attend classes in shorthand and bookkeeping at the Evening Institute or the Technical College Evening Department.

Canteen.

203. The canteen for Revenue Officers on the 6th floor of the Fire Brigade Building continued to be reasonably well patronized.

Revenue Inspectors' Mess.

204. By the end of the year work was almost completed on the conversion of a married and a single quarter on the top floor of the headquarters office into a mess for the Revenue Inspector- ate to a design by an architect of the Public Works Department. The amenities provided will include a changing room with showers, a dining room, library and lounge. The scheme was warmly welcomed by the officers concerned, and should foster a growing sense of esprit de corps.

Office Amenities.

205. Towards the end of the year, the Public Works Depart- ment started alterations to and redecoration of the building in which the Department is housed, and advantage was taken of this and the removal of the Labour Department to another building to ease the congestion in some sections and to improve lighting, ventilation and sanitary facilities. The work is proceeding.

Leave.

206. Leave rosters for the Preventive Service were carefully maintained, and with very few exceptions officers were able to take a minimum of twelve days casual leave during the year. Officers of other grades were freely granted any leave for which they applied, but staffing difficulties made it impracticable to require them to take all the leave to which they were entitled.

Promotion Prospects for Class V Officers.

207. On the institution of a new grade of Office Assistant and the creation of seven posts in the Department during the year, it was possible to fill all seven posts from serving officers. This innovation was welcomed by junior officers, for whom the prospects of promotion are not good.

Sports and Recreation.

208. In October, 1956, an application was made for the reservation of about two acres of ground in the Aberdeen area for use as a sports ground; it was not known by the end of the year whether this application would be granted.

209. Several friendly basket ball matches were played during the year, at which the departmental teams acquitted themselves well.

210. A children's party and a subscription dance were held during December for members of the Department and their friends. About 200 people attended the dance. Some 250 children were entertained at the Post Office Recreation Club, Caroline Hill: the programme included races, side-shows, a magician and jugglers and a cinema show. Father Christmas distributed presents to the children.

General.

XVIII -- STAFF

211. There was no major reorganization within the Depart- ment and the numerical distribution of posts in each branch, section and office at the end of the year is shown in Table 12. Fifty-four out of a total of six hundred and eighty-eight posts were filled by expatriate officers.

212. Two new posts of Assistant Chief Preventive Officer came into being on 1st April, 1956. More detailed information of staff matters in the Preventive Service is contained in Chapter XI.

Staff Changes.

213. Mr. H. A. Angus, M.B.E., Director of Commerce and Industry, returned from vacation leave and resumed duty on 5th November, 1956.

214. Mr. J. J. Cowperthwaite ceased to act as Director of Commerce and Industry on 5th November, 1956, on resumption of duty by Mr. Angus.

215. Mr. T. D. Sorby, Cadet Officer Class II, was appointed an Assistant Director with effect from 20th April, 1956, vice Mr. K. S. Kinghorn, Cadet Officer Class I, who left to attend the Seattle Trade Fair en route to the United Kingdom for vacation leave.

216. Mr. J. Cater, M.B.E., Cadet Officer Class II, was appointed an Assistant Director with effect from 13th Novem- ber, 1956, vice Mr. M. D. A. Clinton, G.M., who was transferred to the Colonial Secretariat with effect from 22nd November, 1956.

217. Mr. D. C. Barty, O.B.E., Cadet Officer Class I, was appointed an Assistant Director with effect from 26th Novem- ber, 1956.

218. Mr. B. I. Barlow, Cadet Officer Class II, relinquished his post of Assistant Director on 23rd December, 1956, and proceeded on vacation leave.

219. Mr. D. Phillips, Statistical Officer, proceeded on vaca- tion leave on 17th October, 1956, on completion of his agreement.

220. Mr. Tung Man Tak, Assistant Statistical Officer, acted as Statistical Officer from 17th October, 1956 to 3rd March, 1957.

221. Mr. C. T. Stratton was appointed Statistician and arrived in the Colony on 4th March, 1957.

222. Mr. W. E. Manson, Trade Officer, returned from vacation leave and resumed duty on 20th August, 1956. He attended a course on Industrial Administration while in the United Kingdom which lasted from October, 1955 to May, 1956.

223. Mr. J. A. M. Tinson, Executive Officer Class I, ceased to act as Trade Officer on 20th August, 1956, on resumption of duty by Mr. Manson.

224. Mr. V. V. W. Fretwell, Trade Officer, proceeded on vacation leave on 1st April, 1956, on completion of his agree- ment.

225. Messrs. L. C. Millington and R. W. Norris, Senior Revenue Inspectors, were promoted to Assistant Chief Preven- tive Officer with effect from 1st April, 1956.

H. A. ANGUS,

Director of Commerce and Industry.

30th July, 1957.

January February March

April

May June

July

August

September

October

November

December

Total

January

February

March

April

TABLE 1

MONTHLY VALUE OF IMPORTS, 1955 AND 1956

Month

Average per month

1955

1956

313,998,293

385,533,548

294,526,708

330,213,439

325,633,878

391,163,044

310,609,350

430,892,278

294,885,602

427,927,566

303,207,358

371,886,575

267,026,806

347,421,171

296,491,279

385,376,858

306,929,441

338,479,456

314,400,499

382,025,378

341,263,486

386,637,622

349,944,884

388,638,196

3,718,917,584

4,566,195,131

309,909,799

380,516,261

TABLE 2

MONTHLY VALUE OF EXPORTS, 1955 AND 1956

Month

May

June

July

August

September

October

November

December

Total.....

Average per month..

1955

1956

204,458,470

251,233,216

195,074,783

241,764,059

204,390,005

284,428,650

186,920,884

319,112,776

201,679,934

308,076,883

193,199,439

242,480,707

190,261,624

249,596,336

218,447,511

266,403,292

224,986,457

251,257,900

223,580,848

232,869,644

245,240,966

265,737,60

245,753,025

296,653,358

2,533,993,946

3,209,614,428

211,166,162

267,467,869

TABLE 3

VALUE OF EXPORTS OF HONG KONG PRODUCTS AS

CLASSIFIED SEPARATELY IN TRADE STATISTICS, 1955 AND 1956

Commodity

1955

1956

% increase or decrease

Cotton piece goods

182,145,715 173,307,143

Cotton yarns

100,327,802

97,587,880

Footwear

76,188,609

76,742,270

Enamelled household utensils

Cotton singlets

56,442,570 76,176,404 58,943,861 75,453,657

Shirts

65,708,141 71,550,966

Electric torches

49,412,156

49,394,345

Metal lanterns

13,141,467

17,191,297

+ 31

Fruits and fruit peels, preserved, glaced or

crystallized

13,468,399

15,578,001

Lacquers, varnishes and prepared paints Iron and steel bars and rounds

12,377,377

14,867,818

8,406,557 14,643,115

Towels, not embroidered

Bed linen, table linen and toilet linen

(including towels), embroidered

Plastic articles

8,536,322 10,736,233

7,880,851

9,693,554

13,171,650

14,350,794

Household utensils of aluminium

Vacuum flasks and jugs, complete. Embroidered outerwear

Articles of clothing (e.g., Handkerchiefs,

shawls, etc.), embroidered, n.e.s.

Torch bulbs

Iron ore

Underwear and nightwear, embroidered

Fish, fish products, crustacea and molluscs

in airtight containers

Cigarettes.....

Non-alcoholic beverages and waters (not

10,618,917 8,744,393

9,763,995 8,240,844

6,349,141

7,778,666

7,487,213

7,027,801 7,146,449

3,798,779 6,182,865 5,850,537

5,968,109 4,449,423 4,694,943 2,636,002 3,180,839

+ 26

Torch batteries

Cement....

7,924,713

++++

1,603,329

2,248,013

683,256 1,039,517

including fruit or vegetable juices)

742,803

Matches

2,304,526

869,662 856,986

│+ ++

*NON IN

Jams, marmalades, fruit jellies and

unfermented fruit juices

204,503

477,372 + 133

Tungsten ore (wolframite)

198,175

133,463

Seagrass

145,637

85,866

Beer (including ale, stout, porter) and

other fermented cereal beverages

11,592

38,150

+229

Total

730,318,559 782,592,874

Average per month.

60,859,880 65,216,073

+ +

+1+1 1++

++++

++++1 │

NANZENK ONDE 16 No cr

TABLE 4

VOLUME OF EXPORTS OF SELECTED HONG KONG PRODUCTS,

1955 AND 1956

% increase

Commodity

Unit

1955

1956

decrease

Cotton piecegoods

Cotton yarns

Lbs.

Sq. Yd. 164,730,831 140,518,816

32,351,460 30,967,336

Cotton singlets..

Doz.

3,853,425

4,773,308

+ 24

Shirts

Doz.

1,600,271

1,672,118

+ 4

Footwear

Doz. Prs.

1,698,594

1,748,173

+ 3

Electric torches

Doz.

3,534,480

3,625,237 + 3

Lacquers, varnishes and

paints

Lbs.

9,860,652

11,583,135

÷ 17

Metal lanterns

Doz.

69,982

105,423

- 51

Towels, not embroidered

Doz.

1,349,890

1,321,699

Torch batteries

Doz.

5,002,960

4,069,724

Vacuum flasks and jugs,

complete

Doz.

173,012

191,535

+ 11

Cement

Cwt.

1,036,191

1,236,899

+ 19

Torch bulbs ...

Doz.

10,144,601

10,799,801

+ 6

Iron ore.

Cwt.

2,473,954

2,474,102

Matches.

Case

15,120

5,487

Iron and steel bars and

rounds

Cwt.

268,140

339,709

+27

Cigarettes

Lbs.

146,209

225,084

Seagrass

Cwt.

2,971

2,055

Tungsten ore (Wolframite)

Cwt.

355

221

TABLE 5

ORGANIZATION OF THE COMMERCE & INDUSTRY DEPARTMENT

DIRECTOR OF COMMERCE & INDUSTRY

LONDON OFFICE

TOKYO OFFICE

ADMINISTRATION DIVISION

-Staff and Office Section

-Accounts and Stores Section

-Statistical Branch

Trade Statistics Section

Other Statistics Section

Industry Branch

SUPPLIES & REVENUE DIVISION

-Revenue Branch

Licensing and Permit Section

Excise Section of Preventive

Service

-Supplies Branch

Reserve Stocks Section

Reserved Commodities Section

Food and Fuel Unit, E.S.C.

-Business Registration Office

CONTROL DIVISION

-Trade Licensing Branch

Import Licensing Section Export Licensing Section

-Preventive Service

Headquarters Section Investigation Bureau Training Section

Marine Section

Land Section

New Territories Section

Prosecution Section

Special (Narcotics) Section

-TRADE DEVELOPMENT DIVISION

-Trade Promotion Section

-Trade Publications Section

-Imperial Preference and Certificates

of Origin Section

Comprehensive Certificates of

Origin Section

-Industry Inspection Section of

Preventive Service

TABLE 6

NET REVENUE COLLECTED FROM ALL SOURCES

Approved

Actual revenue

Heads and subheads of Revenue

Estimates

1956/57

1955/56

Duties:

On hydrocarbon oils imported

On liquor imported

20,000,000

24,477,764 22,051,407

12,000,000

13,793,573

11,190,995

On perfumed spirit imported

500,000

589,959

447,143

On tobacco imported

36,000,000

40,774,038

37,356,960

On liquor locally manufactured

9,800,000

10,276,250

8,813,288

On proprietary medicines and toilet

preparations

3,300,000

4,779,955

3,418,036

On table waters

1,900,000

2,607,760

1,982,960

Internal Revenue:

Business registration fees

5,000,000

6,415,922

5,455,788

Stamp duties

600,000

705,135

659,290

Licences, fines and forfeitures :

Hydrocarbon oils

30,000

37,376

38,692

Liquor

800,000

989,603

960,716

Miscellaneous (table waters)

7,000

6,467

6,522

Proprietary medicines and toilet

preparations

125,000

129,220

139,557

Tobacco

300,000

371,557

373,368

Departmental fines

Forfeitures

600,000

1,857,117

901,594

Fees of court or office:

Denaturing

120,000

103,734

116,866

Miscellaneous

212,460

Official certificates

1,200,000

1,543,700

1,344,015

Departmental services and supervision

Anti-narcotic smuggling guards

8,000

9,417

10,954

Bonded warehouse supervision

14,400

Loss of, or damage to Government

property

131

Contributions towards H.K. Guide and

Directory, (i.e. C. I. F. Directory)

150,000

77,471

34,429

Advertisement revenue Publications

70,000

88,873

71,843

700

521

4,668

Revenue from lands, rent, etc.:

Hire of motor vehicles

203

Miscellaneous receipts:

Other miscellaneous receipts.

Overpayments in previous years

Total....

90,000

230

134,614

2,354

92,615,100 109,865,195

95,528,105

TABLE 7

CERTIFICATION OF HONG KONG PRODUCTS

1955/56

1956/57

Type of Certificate

Factories registered on 31.3.56

Certificates issued

Value of Goods

Factories registered on 31.3.57

Certificates issued

Value of Goods

Imperial Preference Certificates

56,612

$129,105,604

65,557

$143,592,274

2,520

3,124

Standard Certificates of Origin

95,247

$430,272,876

104,966 $501,678,476

Comprehensive Certificates of Origin:

Commercial....

Tourist

Gift

Sample

Not available

14,089

21,496

$ 51,577,762

3,489

704

17,869

27,966

›$70,806,681

6,400

374

TABLE 8

DUTY FROM DUTIABLE COMMODITIES (GROSS)

Type

Liquor:

Whisky

Brandy

Gin

Wines

Beer...

Other European type.

Chinese type:

(a) Locally Distilled (b) Imported

Spirituous liquor other

than intoxicating liquor

Total....

Tobacco :

Cigarettes and Cigars...... European Smoking To-

bacco (including snuff) Chinese prepared Tobacco Tobacco leaf

Total...

Hydrocarbon Oils :

Light Oils

Diesel Oils

1955/56

1956/57

Unit

Quantity Duty

Gallons

60,774 2,884,598 46,529 2,646,050 22,240 1,082,750 49,588 1,143,195

59,665 3,172,560 61,659. 3,726,599

24.777

1,360,200

52,875

1,218,332

2,387,535 10,376

3,421,590

2,766,951

4,375,484

533,362

9,718

538,329

1,347,373

7,519,380

1,362,514

8,497,849

99,308

879,375

146,393

1,332,858

53,735

492,402

60,130

633,655

4,077,428 20,602,702

4,544,682

24,855,866

Lbs.

3,037,288 17,243,702

3,230,064 18,353,141

48,884 7.892

206,159 23,677

42,630

178,927

11.528

34,586

6,456,060 | 23,827,972

5,697,902 20,993,082

8,791,966 38,466,620 9,740,282 42,394,626

Imp. Gals. 13,836,281 11,069,025 14,464,006

11,571,205

Tons

Furnace Oils

48,221

297,398

2,004,184

59,959

2,513,548

7,137,522

346,685

8,320,446

Other type

Imp. Gals. 18,807,027

1,968,902 20,748,497

2,185,517

Total.....

22,179,633

24,590,716

Toilet Preparations

2,101,981

2,888,821

Proprietary Medicines

1,329,580

1,901,732

Table Waters

Gallons 4,131,191

1,982,975 5,432,914

2,607,802

Total......

5,414,536

7,398,355

Refund and Drawback

European liquor...

Spirituous liquor other

than intoxicating liquor...

Toilet Preparations and

Proprietary Medicines

Table Waters

Tobacco

Hydrocarbon Oils

106,035

152,388

45,260

43,696

13,525

10,598

1,109,660

1,620,588

128,226

112,952

Total......

1,402,721

1,940,264

Importers':

TABLE 9

REVENUE FROM DUTIABLE COMMODITIES LICENCES

No. of licences issued

Revenue

Liquor

Tobacco

Hydrocarbon oil

T. P. & P. M.

Table waters

Methyl alcohol

558

83,700

14,700

192

28,800

517

23,600

1,400

Nil

Dealers' :

European-type liquor

258

387,000

Chinese-type liquor

749

381,055

Spirituous liquor

557

16,170

Tobacco

243

72,900

Hydrocarbon oil

327

3,270

T. P. & P. M.

700

7,000

Methyl alcohol

Nil

Retailers' :

Chinese-type liquor

10,075

Spirituous liquor

1,921

71,130

Tobacco

6,185

274,009

Hydrocarbon oil

132 2,048

1,320

50,205

Nil

1,900

2,250

293

43,950

4,875

T. P. & P. M.

Methyl alcohol

Manufacturers':

Liquor (Distillers 17)

(Brewer

Tobacco

T. P. & P. M.

Table waters

Miscellaneous:

Liquor Tobacco

Hydrocarbon oil

1,802

331

6,541

3,850

T. P. & P. M.

295

2,950

Table waters

140

Methyl alcohol

Nil

Licence fees for persons importing for own use...

38,868

Other

763

Total

1,534,223

TABLE 10

CONFISCATIONS UNDER THE DUTIABLE

COMMODITIES AND DANGEROUS DRUGS ORDINANCES

Commodity

Quantity

Unit

1955/56

1956/57

Tobacco :

Chinese prepared tobacco

lbs.

22,075

17,559

Foreign cigarettes

lbs.

1,213

2,062

Macau cigarettes

lbs.

11,111

6,399

Local cigarettes

lbs.

140

192

Tobacco stems

lbs.

Cigars

lbs.

Liquor:

European type liquor

gals.

220

314

Chinese type liquor

gals.

2,659

7,185

Alcohol

gals.

Fermenting material

gals.

18,193

29,715

Illicit stills

Nos.

455

561

Proprietary medicines & Toilet Preparations:

Miscellaneous toilet preparations

pkts.

7,428

5,279

Chinese medicines

pkts.

12,020

40,390

Foreign medicines

pkts.

439

Dangerous Drugs:

Raw opium

Ibs.

451

1,382

Prepared opium

lbs.

Heroin

gms.

5,446

1,477

Heroin pills

gms.

260

3,289

Morphine

gms.

5,216

Codeine hydrochloride

gms.

255

TABLE 11

MAJOR CONFISCATIONS UNDER OTHER LEGISLATION

Legislation

1956 / 57

Commodity

Unit Quantity

Dangerous Goods Ordinance.

Kerosene

Petrol

tons

4.8

Defence Regulations 1940.

Diesel oil

tons

Petrol

tons

1.5

Watches

Nos.

1,159

Cigarette lighters

Nos.

7,210

Ball Pens

Nos.

2,395

Importation & Exportation Ördinance & Regulations thereunder.

Kerosene

tons

150

Diesel oil

tons

Petrol

tons

5.5

Junks & Sampans

Nos.

Empty containers

Nos.

6,993

Bicycles

Nos.

Black Plate

tons

147

Steel dumb lighter

No.

Rubber Tyres

Pcs.

Gold

lbs.

80.583

Gold & jade jewellery

Pcs.

Auto spare parts

cases

110

Band saws

cases

Strip steel

Automatic pin ball machines

Diesel engine components

cases

110

Nos.

cases

Penicillin Ordinance.

Penicillin

tubes

1,084

vials

1,032

tablets 3,538

Merchandise Marks Ordinance.

Skin lotion

bots.

7,940

Chinese Med.

bots.

12,000

Ladies gloves

pairs

480

TABLE 12

DISTRIBUTION OF STAFF

1956/7.

1955/6.

Directorate

London Office.....

Tokyo Office

Administration Division

Staff and Office Section

Accounts and Stores Section

Statistical Branch

Industry Section

1 85

Supplies and Revenue Division

Revenue Branch

Reserve Stocks Section..........

Reserved Commodities Section and Food & Fuel

Unit, E. S. C.

Business Registration Office...

109

118

Trade Development Division

Trade Promotion Section

Imperial Preference and Certificates of Origin Section Comprehensive Certificates of Origin Section....

Control Division

Trade Licensing Branch:

Import Licensing Office

24.

Export Licensing Office

Preventive Service:

Headquarters Section Investigation Bureau Training Section

Marine Section

Land Section

New Territories Section

Prosecution Section

Narcotics Section

Excise Section

Industry Inspection Section...

Total

402

358

668

621