HONG
НКР
c73
ANNUAL
DEPARTMENTAL
REPORTS
KONG
1968-69
DIRECTOR OF
COMMERCE AND INDUSTRY
2060
хово
HONG KONG
ANNUAL DEPARTMENTAL REPORT
BY THE
DIRECTOR OF COMMERCE AND INDUSTRY
T. D. SORBY, J.P.
FOR THE
FINANCIAL YEAR 1968 - 69*
PRINTED AND PUBLISHED BY S. YOUNG, GOVERNMENT Printer AT THE GOVERNMENT PRESS, Java ROAD, HONG KONG
* 1st April 1968 - 31st March 1969
MARINE DEPARTMENT LIBRARY
2060
EXCHANGE RATES
When dollars are quoted in this Report, they are, unless otherwise stated, Hong Kong dollars. The official rate for conversion to pound sterling is HK$14.54=£1 (HK$1=1s. 41d.). The official rate for conversion to U.S. dollars is HK$6.06= US$1 (based on £1=US$2.40).
HK 574. COM
69
72372-15K-12/69
CONTENTS
Chapter
1. REVIEW OF THE YEAR 1968-69 .
2. COMMERCIAL RELATIONS 'E' DIVISION (EUROPE)
GENERAL
INDIVIDUAL COUNTRIES
Austria
Paragraphs
1 - 48
49
The Benelux Countries
United Kingdom
Federal Republic of Germany
France
Greece
•
Italy Norway
Republic of Ireland
Sweden
LONDON OFFICE
BRUSSELS OFFICE .
•
·
•
•
3. COMMERCIAL RELATIONS 'R' DIVISION-REST OF
WORLD (OUTSIDE EUROPE)
GENERAL
INTERNATIONAL TRADE ORGANIZATIONS
50
51 - 53
54 - 60
61 - 64
65 - 66
67
68
69 - 70
71
72 - 75
76 - 82
83 - 86
87
General Agreement on
Tariffs and Trade
(G.A.T.T.)
88 - 94
United Nations Conference
on Trade and
Development (U.N.C.T.A.D.) .
95 - 97
United Nations Economic Commission for Asia
and the Far East (E.C.A.F.E.)
International Cotton Advisory Committee
98 - 99
•
(I.C.A.C.)
100
iii
Chapter
INDIVIDUAL COUNTRIES
Australia
Canada
Indonesia
•
Republic of Korea
New Zealand
South Africa
Sudan
United States of America.
GENEVA OFFICE
WASHINGTON OFFICE
Paragraphs
. 101
101 - 104
105 - 109
110 112
-
113
-
114
•
115
116
117 - 121
122 - 126
127 - 131
•
4.
INDUSTRY DIVISION
CERTIFICATION BRANCH
Policy
132
•
General
Fees for Certificates of Origin .
Standard Certificates of Origin. Commonwealth Preference Certificates
Comprehensive Certificates of Origin Hairs Wigs
Agricultural Products
Sharks Fins and Mixed Silk/Wool Piecegoods
133 136
137
138 139
-
140 - 143
·
144
145 - 147
148
and Garments
149
Certificates of Processing.
150
Miscellaneous Certificates
151
•
Certification Co-ordination Committee
152 - 153
.
INDUSTRY INSPECTION BRANCH
General
Inspections
Kowloon Inspection Control
Industrial Surveys
Investigations
154
·
155 - 156
·
157 - 158
159
160
iv
Chapter
Prosecutions
Anti-Corruption Measures
Branch Accommodation
INDUSTRIAL Development BRANCH
REVIEW OF INDUSTRY
Textile Spinning
Textile Finishing
Cotton Knitting
Woollen Knitting
Paragraphs
161
162
163
164 - 168
169
170
171
Wearing Apparel
·
Plastics
Light Metal Products
Electronics
172 - 173
174
175 179
-
180 - 182
Hair Wigs
183
Shipbuilding
184
185
Shipbreaking and Steel Rolling Mills
186
INDUSTRIAL PROMOTION
LOANS FOR SMALL INDUSTRY COMMITTEE
LAND FOR INDUSTRY.
187 - 188
189 - 190
191
Kwun Tong .
192
Tsuen Wan/Kwai Chung/Tsing Yi
Industrial Land Sales
HEALTH AND SAFETY STANDARDS OF HONG KONG
193
194
PRODUCTS
General
195 - 196
Toys Lead Content
197 - 198
Lead in Pewterware
199
Plastic Rain Coats.
200
Minor Complaints Regarding Safety
Standards
201
COPYRIGHT AND DESIGNS
Infringement of Patents and Designs
202
Designs Registry
203
V
Chapter
5.
Paragraphs
ECONOMIC COMMISSION FOR ASIA AND THE FAR
EAST
TRADE COMPLAINTS
PREVENTIVE SERVICE AND DUTIABLE COMMODITIES
DIVISION
Creation of New Division .
PREVENTIVE SERVICE
204 - 205
206
•
207
GENERAL
•
EXCISE
208 - 212
Hydrocarbon Oils Adulterated Liquor Illicit Distilling
PREVENTIVE OPERATIONS
Searches
Narcotics
+
213 - 215
216
217 - 220
221
225
→
-
224
226
227 - 228
Bullion
Unmanifested Cargo
Marine
TRAINING AND ADMINISTRATION
Investigation
Prosecutions
Training
Staff and Discipline
FOOD SUPPLIES.
DUTIABLE COMMODITIES DIVISION
Revenue from Excise Duties
(a) Tobacco.
(b) Hydrocarbon Oils
(c) Liquor
(d) Table Waters.
Revenue from Licences
vi
•
229
230
231
232 - 233
•
234 - 237
238 - 255
256 - 261
262 263
264 267
268
-
269 - 270
271
•
272
273 274
Chapter
6. GENERAL DUTIES BRANCH
Establishment of the Branch
TRADE LICENSING AND RESERVED COMMODITIES
Trade Licensing
Reserved Commodities
Paragraphs
275
276 - 280
(a) Rice
(b) Frozen Meat
•
7.
(c) Frozen Poultry
(d) Coal
(e) Firewood
ADMINISTRATION BRANCH
GENERAL
OVERSEAS OFFICES
ORGANIZATION AND PERSONNEL Departmental Organization
Senior Staff Movements
Establishment
Recruitment
TRAINING
DEPARTMENTAL ACCOMMODATION
Departmental Quarters
WELFARE
Sports
•
Preventive Service Senior Staff Club.
Clerical Canteen
8. FINANCE AND STORES
REVENUE
EXPENDITURE
STORES
WELFARE FUNDS
vii
•
•
281
+
282 - 288
•
289 - 291
292
·
293
294
€ 295
296
297 - 298
299 - 303
304
305
306 - 315
316 - 320
•
+
•
321
322
•
323
324
325
326 - 327
328 - 330
·
331 - 334
335
TABLES
Table
1. Exports of Restrained Cotton Textiles to Britain, 1964-69.
2. Exports of Cotton Textiles Restrained under G.A.T.T. Cotton Textiles Arrangements from October 1962 to September 1969
3. Certification of Origin Statistics
4.
Trade Complaints from Overseas Companies or Indi- viduals Handled by the Department from 1.4.1968 to 31.3.1969
5. Duty from Dutiable Commodities (Gross)
Page
74
75
76
77
78
6. Revenue from Dutiable Commodities Licences, 1968-69 .
80
7. Major Confiscations under other Legislation
81
8.
Confiscations under the Dutiable Commodities Ordinance, Chapter 109, and Dangerous Drugs Ordinance (No. 41 of 1968)
82
9.
Commerce and Industry Department, Hong Kong,
Organization Chart
83
10.
Net Revenue Collected from all Sources .
84
viii
CHAPTER 1
REVIEW OF THE YEAR 1968-69
INTRODUCTION
THE Review of Overseas Trade in 1968 (published by the department in May 1969) showed a further encouraging expansion in overseas trade. The value of domestic exports reached a new record level at $8,428 million, 25.8 per cent above 1967. Great advances were made in the United States market whilst sales to the Federal Republic of Germany and the Netherlands recovered. Considerable gains were recorded in sales of clothing, miscellaneous manufactured goods (prin- cipally wigs, plastic toys and dolls, and artificial flowers), electrical machinery, apparatus and appliances (principally transistor radios and electronic parts), and in textiles.
2. Imports maintained an upward trend in 1968 and established a new record at $12,472 million, 19.4 per cent over 1967. Japan replaced China as Hong Kong's principal supplier. Re-exports increased by 2.9 per cent to $2,142 million despite a drop of 30 per cent in trade with Indonesia, Hong Kong's largest re-export market. Re-exports represented 20.3 per cent of total exports compared with 23.7 per cent in 1967.
3. The fiscal year ending 31st March 1969 was marked by four events of departmental or wider significance:
(a) Conclusion of a bilateral agreement on restraint of exports of all cotton textiles, other than yarns, with the Benelux Governments. (b) Following a protracted series of consultations with the Govern- ments of Norway and Sweden, Hong Kong was able to persuade these Governments to modify their original requests for export restraint on all garments of all fibres and to accept restraint on exports of a few specific items of cotton and non-cotton garments. (c) An Assistant Director of the Department was posted to the London Office in June 1968, to assume responsibility for looking after Hong Kong's trading interests in Britain. His primary responsibilities are to keep British commercial, economic and
1
industrial developments under review and to advise on the likely repercussions of these developments on Hong Kong's interests. (d) The Trade and Industry Advisory Board appointed a committee of nine (subsequently increased to eleven) under my chairman- ship in May 1968, to study the need for a loan institution to provide medium-term finance for small-scale industry. At the end of the year, the Committee was considering the reports of two fact-finding surveys of a cross-section of small industry.
4. During the year, the negotiation of textile agreements continued to draw heavily on the department's resources. The Commercial Rela- tions Division concerned with Europe was particularly taxed with com- mitments to consult or negotiate in Scandinavia, London and Hong Kong and with the subsequent implementation of agreements resulting from these consultations. In all these negotiations, the Department drew heavily on the advice of the Cotton Advisory Board and of the Wool Committee of the Trade and Industry Advisory Board.
EXTERNAL COMMERCIAL POLICY
Britain
5. On 22nd November the Chancellor of the Exchequer announced a number of measures designed to alleviate Britain's balance of pay- ments difficulties. Amongst these measures was the imposition of a 50% cash deposit, to be retained for 180 days without interest, on certain imports. This affected Hong Kong particularly, as virtually all our exports to Britain were caught by the Scheme. In the event, our London Office was able to send back early and accurate information which, coupled with the advice and assistance of the Trade and Industry Advisory Board and the Hong Kong Export Credit Insurance Corpora- tion, facilitated rapid introduction of measures to overcome the difficul- ties caused by this development. The high level of liquidity in the banking system and the ready co-operation of banks enabled exporters to assist their British importers to meet their 50% import deposit liability at an additional cost of only 5%. With these and other facilities available to exporters, the effect of the British import deposit measures on Hong Kong's exports to Britain was minimized.
Benelux
6. Following consultations and negotiations held in Hong Kong in June, a bilateral agreement on restraint of exports of all cotton textiles,
2
other than yarns, was concluded with the Benelux Governments. An agreement of this nature involved a fairly radical change in the cir- cumstances in which Hong Kong carries out the bulk of its trade with the Benelux countries. In deciding to enter into this agreement, the Hong Kong Government was influenced by the difficulties being experienced by the Benelux cotton textile industry and by developments in the European Economic Community towards a common policy on imports of cotton textiles. In the latter context, Hong Kong already has a bilateral agreement with the Federal Republic of Germany covering a large proportion of its cotton textile exports to that country. In addition France has continued to restrict imports of virtually all cotton textiles from Hong Kong.
Norway and Sweden
7. The Governments of Norway and Sweden, in separate requests presented in March and April 1968 respectively, sought consultations with a view to restraints on Hong Kong's exports to their markets of all garments. A protracted and difficult series of consultations, held intermittently in Oslo, Stockholm, London, Hong Kong and Geneva, resulted in the Hong Kong Government undertaking to restrain exports of certain garments, both cotton and non-cotton, to these countries. The details are recorded in the body of this report and I am glad to say that, although Hong Kong has again had to concede restraint on non-cotton textiles, the comprehensive scope of the original Norwegian and Swedish requests was successfully narrowed to a few specific items, exports of which from Hong Kong were causing identifiable difficulties.
United States of America
8. The year was notable for developments which could have impor- tant effects on Hong Kong's trade and commercial relations with the United States of America.
9. It started with the possibility of the introduction of legislation designed to restrict imports into the United States which, if it had been passed, would have undoubtedly had far-reaching effects on world trade in general and on Hong Kong's trade in particular. Fortunately for Hong Kong, the proposed legislation did not reach the statute book.
General Agreement on Tariffs and Trade
10. Hong Kong's representatives attended the 25th Plenary Session of the G.A.T.T. in Geneva in November as members of the United
3
Kingdom Delegation. The Session produced little of immediate signifi- cance for us. It was clear that time was needed to digest and implement the results of the recently concluded Kennedy Round trade negotiations, and a period of international monetary crisis and balance of payments difficulties was hardly propitious for great new initiatives for the liberalization of trade.
11. Nevertheless, some important groundwork of considerable potential significance for the future of international trade was put in hand. Towards the end of 1968, the G.A.T.T. Committee on Trade in Industrial Products began a detailed process of listing and analysing non-tariff barriers to trade maintained by members of the G.A.T.T. Hong Kong contributed to the G.A.T.T. Secretariat's compilation of the inventory of these non-tariff barriers and was represented at meet- ings of the Committee by the Assistant Director, Geneva.
United Nations Conference on Trade and Development
12. The year saw the start of work in the U.N.C.T.A.D. Special Committee on Preferences to draw up a generalized system of preferences for the exports of developing countries in the markets of developed countries. The results of this work could have significant effects, one way or the other, on Hong Kong's trading position in some of its major markets, and the Department has consequently been follow- ing developments closely through its Geneva Office.
Economic Commission for Asia and the Far East
13. Hong Kong was represented at the 21st Plenary Session of the E.C.A.F.E. held in Canberra in April. Discussion was in general muted. This was probably due to the fact that the Session was held immediately after the second meeting of the U.N.C.T.A.D. and most developing countries were still assessing the results of that meeting before embark- ing on new initiatives in the E.C.A.F.E.
CERTIFICATION OF ORIGIN
14. The year saw a further advance in co-ordination of the origin certification systems operating in Hong Kong. The approved non- government certificate issuing bodies agreed to standardize their fees for each certificate of origin application at $7 for their members and $15 for non-members. This agreement resolved one of the few out- standing issues in the standardization of procedures and I am pleased to record the very close co-operation which now exists between the
4
department and the four non-government organizations approved for the issue of certificates of origin-the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Indian Chamber of Commerce and The Chinese Manufacturers' Association.
15. The Department's involvement in certification continues to grow and may be gauged by the fact that over 200 officers are employed in the Certification Branch and the related Industry Inspection Branch. The number of firms and factories registered with the department for certification purposes rose to 9,147 in March 1969, an increase of 20% over the previous year. This was due largely to a decision of the Cer- tification Co-ordination Committee (a non-statutory committee of certificate issuing bodies under the chairmanship of a senior officer of the department and responsible for standardization of origin criteria, procedures and documents) that as from 1st March 1968, certificates of origin would only be issued for products manufactured in factories registered with the department. Over 433,700 Standard, Commonwealth Preference and Comprehensive Certificates of Origin were issued by the Department during the year, an increase of 4.5% over 1968. The value of exports covered was $4,871 million, representing 55% of Hong Kong's total exports of domestic products.
INDUSTRIAL DEVELOPMENT
Loans for Small Industry Committee
16. During the budget debate in March 1968, in reply to a sugges- tion from Dr. the Hon. S. Y. CHUNG, I intimated my willingness to undertake with the assistance of the Trade and Industry Advisory Board, a study of the possible need for a loan institution specializing in assisting small-scale industry with medium-term finance.
17. In May 1968, the Trade and Industry Advisory Board appointed a committee of nine, under my chairmanship, to consider this matter. On the advice of the Board, the membership of the Committee was subsequently increased to eleven, and now comprises five industrialists, three bankers and three Government officials. The Committee met twice during the year.
18. To assist the Committee, the Industrial Development Branch carried out two fact-finding surveys to secure general information on industrial financing and, in particular, to assess the difficulties which may face small industry in securing loans for re-equipment. The reports of these surveys have been presented to the Committee for consideration.
5
Steel Industry
19. The department has been concerned for several years with the steel industry's difficulties arising from falling domestic and overseas sales of its products. In 1966, the industry asked the Government to consider measures by which it could be assured of a protected share of the domestic market for steel products. The department, working with the industry, attempted to determine whether useful measures of assist- ance could be adopted. Several possibilities were considered in con- junction with other Government departments, notably the Public Works Department. The conclusion reached was that none was likely to have more than a temporary palliative effect and that the advantages to be gained by the steel rolling industry would be more than offset by the disadvantages to the economy as a whole. This was also the consensus of opinion of the Trade and Industry Advisory Board and of the Governor in Council to whom the matter was referred.
20. All who have been concerned with the difficulties of the steel industry in Hong Kong were satisfied that the capacity of the industry as a whole considerably exceeded existing demand, both domestic and overseas, and that the industry would have to contract substantially as a pre-requisite to economic viability. The industry was so informed in September 1968. During the next few months, the process of ration- alization appeared to have started with several mills either ceasing production or preparing to transfer their operations to other Asian countries.
Industrial Promotion
21. The department does all it can to encourage overseas investment in industry. Overseas-owned companies already represent very con- siderable investment and industrial employment. They are also, by and large, leaders in technological advancement and for this reason also such investment is important to our continued industrial development.
22. The department has expanded its industrial promotional efforts in response to increasing interest by overseas companies investigating the possibility of setting up wholly owned plants or subsidiaries. By the end of the year, a number of these companies had reached different stages in their assessment of Hong Kong. In some cases, the depart- ment awaited the arrival of survey teams; in others, decisions had yet to be made to send survey teams to Hong Kong.
6
23. In addition, the department assisted a number of companies based overseas to expand their activities or set up additional branch factories.
24. A brochure, 'Investment Hong Kong', was produced by the Industrial Development Branch of the department and published in September by the Trade Development Council. This is intended for businessmen considering Hong Kong as a site for industrial investment or for the establishment of commercial offices. The publication will be revised and re-issued periodically.
PREVENTIVE SERVICE AND REVENUE
Preventive Measures
25. The scale of revenue evasion by illegal distillation during the first half of the year was a cause of considerable concern. However in the last quarter of the year, the effect of continuous, co-ordinated action against the distillers was felt and a number of them ceased operations whilst other moved to more remote areas. Seizures of fermenting material and spirits, which exceeded all previous amounts since 1945, were worth, in terms of revenue, over $400,000. Industrial diesel oil, which is distinguished by a red-coloured dye and a chemical marker and attracts a lower rate of duty than diesel oil intended for auto- mobiles, was again a target of illegal operators who sought to remove the markers. The increase in vehicles powered by diesel engines and the practice of bulk buying has revealed the profit potential to organized criminals, and, as forecast in 1966, the removal of markers is becoming a large scale operation. Unofficial estimates suggest that the loss in revenue for 1968-69 exceeded $2,000,000. The seizure figures, at 61,764 gallons of diesel oil, are perhaps a more positive indication of the volume of this illegal business which is now so widespread.
Narcotics
26. An improvement in the staffing situation enabled a tighter con- trol to be exercised in the harbour area. Apart from small quantities of drugs being smuggled by individuals on board vessels in the harbour, imports appear to be generally effected via sea routes to areas outside the harbour. The local supply of narcotics has apparently been plentiful and there is no evidence to suggest that the modus operandi of the main drug syndicates has changed.
7
Senior Command
27. The Service has hitherto been administered by a Staff Grade C Administrative Officer with the rank of Assistant Commissioner who, in his capacity as an Assistant Director of the department, also had a wide range of other important responsibilities. It had become evident, however, that an expanding service of 895 men, excluding 36 civilians, should have as its immediate head an officer who could concentrate full time on the operational and administrative needs of the Service, as well as provide the continuity of direction and command which is so essential in a disciplined service. The departure of Mr. I. F. C. MACPHERSON, Assistant Director and Assistant Commissioner of the Preventive Service, on vacation leave in mid-February 1969, provided an opportune moment to put this change into effect, and Mr. A. L. TOKLEY, Chief Preventive Officer was appointed to the post of Assist- ant Commissioner. A new Preventive Service and Dutiable Commodi- ties Division was created within the Department, which will also be responsible for the Food Unit of the Essential Services Corps.
Dutiable Commodities Revenue
28. Total net revenue, at $335,750,000 was slightly higher than the published estimate of $333,300,000. Within this total, revenue from tobacco fell by $3.2 million but this was more than counterbalanced by increased revenue from liquor and hydrocarbon oils. The decline in tobacco revenue was attributed to a depression in the tobacco export trade, absence of the speculative pre-Budget withdrawals that had been a notable feature of previous years, and a moderate change in smoking habits reflected by decreased revenue from Chinese prepared tobacco. An expected increase in consumption of table waters did not materialize due to unusual weather conditions and revenue derived from this com- modity was $1 million below the estimate.
MISCELLANEOUS
Rice
29. During the year, the world rice situation was generally one of surplus as a result of improved harvests in most producing countries, particularly those in South East Asia. World rice prices registered a significant decline and local wholesale prices inevitably followed this trend. At the same time, registered importers in Hong Kong had on their hands, throughout the greater part of the year, very substantial stocks deliberately built up in and carried over from the previous year.
8
These stocks, purchased at high prices, depreciated rapidly in value as importers customarily sell on a current replacement cost basis. They also resulted in considerable capital being tied up and in increased expenditure of related costs such as storage charges, bank interest and insurance premia. The result was that, with a few exceptions, importers suffered a degree of financial loss. This loss was particularly abrupt when, at the beginning of October 1968, the Thai Government announced a reduction of their export premium on rice and stocks of Thai rice in Hong Kong depreciated by no less than $5 per picul overnight.
30. Registered importers were able to absorb this loss themselves, but they could not be expected to do so for long, and would ultimately seek to recover the loss from consumers. The situation, therefore, was basically unhealthy and was likely to work against the interests of the consumer in the long run. To restore normality to the trade, it was first necessary to run down the expensive stocks held by importers, as the maintenance of these at a high level, when world supplies were abundant, could not be justified. I therefore reduced import quotas temporarily and by the end of the year more normal conditions prevailed in the trade. The Rice Control Scheme was once again put to the test and proved itself equal to the situation.
Legislation
31. Appreciable headway was made in a major revision of the Importation and Exportation Ordinance (Cap. 50), administered by this department. The draft Import and Export Bill represents a tidying up process conducted departmentally over the past ten years and will bring together, in one piece of legislation, laws on import and export controls promulgated under a number of different ordinances. Following initial consultation with the Trade and Industry Advisory Board, interested government departments and the principal trade organizations were invited to comment on the draft Bill. Their observations were being examined by the department at the end of the year. The further advice of the Trade and Industry Advisory Board will be sought before an agreed version of the Bill is submitted to the Governor in Council for authority to introduce into Legislative Council.
Ad Valorem Charges on Trade Declarations
32. These charges (at a rate of 0.05% ad valorem) are levied under the Importation and Exportation (Registration of Imports and Exports) Regulations, which are administered jointly by the Census and Statistics
9
Department and this department. The revenue thus collected on trade declarations during the year amounted to $11.9 million, of which $1.2 million was notionally credited to the cost of compiling the trade statistics by the Census and Statistics Department, and $10.7 million notionally appropriated in the subvention to the Trade Development Council in the Estimates approved for the 1969-70 financial year.
ADMINISTRATION
Senior Staff Changes
33. Apart from the appointment mentioned in paragraph 27 above, there were four major changes in the senior management of the depart- ment during the year.
34. In mid-April, Mr. E. I. LEE, Administrative Officer Staff Grade B2 replaced Mr. D. C. C. LUDDINGTON as Deputy Director (Adminis- tration and Industry).
35. Mr. D. G. JEAFFRESON, Senior Administrative Officer, who had served as Assistant Director in the Commercial Relations 'E' Division since July 1967, went on leave in November 1968. He was replaced by Mr. E. P. Ho, Administrative Officer Staff Grade C.
36. Mr. W. DORWARD, Senior Trade Officer, was promoted to Assistant Director in September 1968.
37. Mr. D. M. SELLERS, Administrative Officer Staff Grade B2 was appointed as Assistant Director (London) in June 1968.
Departmental Organization
38. A significant change in departmental organization took place in February 1969. The former Controls Division responsible for the Preventive Service, dutiable commodities, trade controls, reserved com- modities and food supplies was replaced by a new Preventive Service and Dutiable Commodities Division and a General Duties Branch. The Chief Preventive Officer was appointed to act as Assistant Director and Assistant Commissioner in charge of the Preventive Service and Dutiable Commodities Division while an Administrative Officer heads the General Duties Branch. Details of the functions of this new division and branch are given in Chapters 5 and 6 respectively.
39. At the beginning of the year, the department's authorized establishment stood at 1,435 posts of which 855 were in the Preven-
10
tive Service. On 31st March 1969 the overall establishment had reached 1,491, the number of posts in the Preventive Service having increased to 895. There were 126 vacancies, including 112 in the Preventive Service at the end of the year under review.
Office Accommodation
40. There was little relief in the overcrowded conditions in Fire Brigade Building as the anticipated move of the Census and Statistics Department from the 4th floor of the building had not occurred by 31st March 1969. Plans for the complete renovation of the northern portion of the building were still in the early stages. Nevertheless, it was possible to resite the Certification Receiving Office to the ground floor of the building, thus providing better facilities for the public and improving somewhat the standard of accommodation for staff of the Certification Branch on the first floor.
41. Plans were finalized for the move of the Industry Inspection Branch from the Head Office Building of the Housing Authority at Ma Tau Kok to Tung Ying Building in Nathan Road.
42. During the year, the Preventive Service acquired additional accommodation in the Causeway Bay Magistracy Building and the Chartered Bank Building, Tsuen Wan, the latter for the establishment of a new excise office.
Advisory Boards
43. The terms of reference of the Trade and Industry Advisory Board are 'To advise the Director of Commerce and Industry on matters other than labour affecting the Colony's trade and industry'. During the year, the Board met on ten occasions and discussed a range of important subjects, the major ones being loans for small industry in Hong Kong, metrication, the United Kingdom import deposit scheme, Indonesian restrictive measures against Hong Kong, and the Draft Import and Export Bill. I should like to thank members of the Board for their valuable advice on these and other matters. My particular thanks are due to Mr. T. K. ANN, J.P., Mr. K. S. Lo, J.P., and Mr. James M. H. Wu, J.P. for so ably leading Hong Kong delega- tions to three E.C.A.F.E. committee or council meetings. Membership of the Board at the end of the year included the three gentlemen named above together with the Hon. P. Y. TANG, O.B.E., Mr. Q. W. LEE, J.P., Mr. H. J. C. BROWNE, J.P., Mr. P. A. GRAHAM, J.P., Mr. P. G. WILLIAMS, J.P., and Mr. R. E. MOORE.
11
44. The function of the Cotton Advisory Board was to advise me on matters directly affecting Hong Kong's cotton textile industry and related matters. The Board consisted of thirteen members, all un- officials, under my ex-officio chairmanship. Membership comprised Dr. the Hon. Sir Sik-nin CHAU, C.B.E., J.P., the Hon. S. S. GORDON, C.B.E., J.P., Mr. LAM Kun-shing, J.P., Mr. Francis Y. H. TIEN, J.P., Mr. Y. L. YANG, J.P., Mr. T. K. ANN, Mr. C. K. CHOW, Mr. M. CURRAN, Mr. J. A. KING, Mr. Y. C. WANG, Mr. David Z. D. Woo, Mr. Woo Ping and Mr. William T. L. YAO. The Board is particularly concerned with advice on the conduct of negotiations and the imple- mentation of international agreements. It met 22 times during the course of the year. In addition a number of members accompanied official delegations overseas on several occasions.
45. I should like to pay tribute to the sterling service rendered by these two boards and to express my appreciation of the considerable time and effort devoted by members, both past and present, to the many papers referred to them for advice.
Acknowledgements
46. Once again, I am happy to record the department's continuing and fruitful association with the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, and the several associa- tions connected with the textile industry. As in previous years, my staff assisted the Chinese Manufacturers' Association of Hong Kong with the arrangements for their annual exhibition of Hong Kong products which successfully promoted sales of local products and which drew a record attendance.
47. I am indebted to the permanent missions of overseas countries stationed in Hong Kong for their valuable contribution to the work of the department, particularly in smoothing the conduct of consultations or negotiations on a number of occasions.
48. The department can only maintain its standards of public service through the continued hard work and co-operation of all its staff. This I readily received from all staff, both civilian and uniformed, and I am deeply grateful for their devoted service. A more detailed account of their work may be found in the succeeding chapters of this report and its appendices.
12
CHAPTER 2
COMMERCIAL RELATIONS ‘E' DIVISION (EUROPE)
(See also Chapter 1, paragraphs 5-7)
49. While mainly concerned with Hong Kong's external commercial relations with European countries, the Division also has overall respon- sibility for the procedural and legal aspects of the licensing of textiles exports. During the period under review, further progress was made towards the computerization of licensing records, and drafting instruc- tions for quota regulations to be made under the Import and Export Ordinance were forwarded to the Legal Department. These regulations represent a codification of the Department's present practices in the administration of textiles controls through quota and export authoriza- tion schemes and would strengthen the legislation under which the Department now operates.
INDIVIDUAL COUNTRIES
Austria
·
50. Although the anti-dumping legislation applicable to Austrian imports of woollen knitted outerwear from Hong Kong and certain other suppliers remained in force, in June 1968 the Austrian Govern- ment signed, subject to ratification, the G.A.T.T. Anti-Dumping Code. It is hoped that this will lead to the legislation being suitably modified; the Department, meanwhile, kept the situation under review.
The Benelux Countries
51. In the restraint period extending from 1st October 1967 to 30th September 1968 utilization of the cotton quota covering woven night- wear, handkerchiefs, bed linen, household linen of terry cloth and woven shirts amounted to only about two-thirds of the aggregate limit which was equivalent to approximately 8.2 million square yards (see also Table 2).
52. In June 1968, at the request of the Benelux Governments, con- sultations and negotiations were held in Hong Kong with a delegation of Benelux officials on Hong Kong's exports of cotton textiles to the
13
Benelux countries. These negotiations resulted in the conclusion of an agreement, under the G.A.T.T. Cotton Textiles Arrangement, for Hong Kong to regulate exports of all cotton textiles, except yarns, for the period 1st July 1968 to 31st December 1969. The total quantity agreed upon was 3,153 metric tons (see also Table 2). The undertaking of July 1967 relating to the six categories mentioned in the paragraph above remained in force until 30th September 1968 when it was merged into the new agreement.
53. On the advice of the Cotton Advisory Board, quota for the newly restrained items was allocated to companies on the basis of shipment performance during the reference period 16th June 1967 to 15th June 1968. Final allocations for these items were made in Septem- ber 1968. In respect of the six categories covered by the 1967 under- taking, quota for the period 1st October 1968 to 31st December 1969 was allocated to companies on the basis of their shipment perform- ance during the previous restraint period. Final allocations were made towards the middle of November 1968.
United Kingdom
Britain and the European Economic Community
54. Close attention continued to be given to developments in the European Economic Community, and especially to the currents of opinion on Britain's application to join the Community. There were no developments during the year such as might have given rise to concern in Hong Kong.
Import Deposit Scheme
55. In order to help solve Britain's balance of payments difficulties, Her Majesty's Government introduced an import deposit scheme effec- tive for one year from 27th November 1968. Under this scheme, im- porters are required to pay a deposit of 50% of the value of any consignment; such deposits are not repayable for 180 days. While virtually all Hong Kong's exports to Britain fall within the terms of scheme, indications are that Hong Kong exporters are managing to maintain their business without too serious disruption.
Cotton Textiles
56. Under the 1966-70 arrangements, Hong Kong had a 1968 aggre- gate restraint limit of 188.72 million square yards for cotton woven piecegoods and made-ups and garments, 6.427 million lb. for cotton
14
yarns, and a further 2.412 million square yards for miscellaneous cotton manufactures not restricted under the 1963-65 undertaking.
57. As illustrated in Table 1, 1968 export performance in all groups was maintained at a high level. At the year end, there remained small unshipped balances of quota in the cotton yarns and miscellaneous manufactures groups, but the piecegoods and made-ups and garments allocations were fully utilized. Use was also made of the anticipation provision in the agreement and, by 31st December 1968, 5.75 million square yards of the 1969 quota had been shipped.
58. In 1968 and the first quarter of 1969, the High Hong Kong Cost Content Schemes for finished piecegoods and made-ups and gar- ments were operated as previously. Keen competition for the yardage available under the Schemes reflected a strong demand in the British market.
59. At the request of the British Government, consultations were held in September, as a result of which new categorization in respect of wide sheeting and sheets was agreed for 1969, while the levels for nine existing categories in loomstate and finished piecegoods and made- ups and garments were increased. This modification does not affect Hong Kong's total export opportunities under the 1966-70 arrange-
ments.
60. The internal quota control arrangements for 1969, virtually the same as those in operation in 1968, were announced in December and final allocations of quota were made in late January 1969.
Federal Republic of Germany
(a) Cotton Textiles
61. In the second restraint period, the calendar year 1968, utiliza- tion of the quota of 68.6 million square yards (including carryover in the fabrics, outerwear and towels groups) exceeded 95%. The effective aggregate restraint limit (including carryover in the same three groups) for the third restraint period, the calendar year 1969, is 69.7 million square yards.
62. On the advice of the Cotton Advisory Board, it was decided that 1969 quota should be allocated to companies on the basis of ship- ment performance against 1968 quota holdings. Final allocations were made in March 1969.
15
(b) Woollen Knitted Outerwear
63. During the second year of the revised restraint agreement, only 265,094 dozens, or 29.4% of the effective limit of 899,750 dozens, were shipped. These figures clearly reflect the weak state of the German market for Hong Kong woollen knitwear in 1968.
64. On the advice of the Wool Committee of the Trade and Industry Advisory Board, the Department decided to abolish company quota in 1969, and the entire quantity, amounting to 951,250 dozens, including carryover of 26,250 dozens, is being made available on a first-come-first-served basis by means of an export authorization scheme.
France
(a) Cotton Textiles
65. In March 1969, talks were held in Hong Kong regarding the 1968-69 quotas for certain items of cotton textiles, the import of which from Hong Kong into France is severely limited. The French delega- tion advised that, as in the previous year, the French Government had decided to split the import quotas into two equal parts, one part to be administered by the Department in Hong Kong and the other by the French authorities.
(b) Other Import Restrictions
66. At the same time, informal talks were held regarding French imports, other than cotton textiles, from Hong Kong which are still subject to discriminatory import restrictions. The French Government notified the liberalization of three items-namely, wool fabrics contain- ing more than 15% discontinuous artificial and synthetic fibres; velvet other than of cotton; footwear coming above the ankle with outer- soles and uppers of rubber or artificial plastic materials; and four sub-items-ribbons other than of cotton; pleasure and sports boats for marine use over 12 metres long; unmounted lenses, and motors for toys. Also, the remaining quotas were increased by 2.03 million francs, plus increases of 10,000 units for umbrellas and 3,000 units for radios. The leader of the French delegation also advised that the French Government had decided to drop their remaining certification require- ments in respect of sixteen items which had hitherto been required to be covered by specially endorsed (50% Commonwealth cost content) Certificates of Origin.
16
Greece
MARINE DEPARTMENT LIBRA
67. The Greek Government maintain a ban on the import of most textiles from Hong Kong. The fact that the restrictions are contrary to Greece's most-favoured-nation obligations to Hong Kong under the G.A.T.T. has been brought to the attention of the Greek Ministry of Commerce. The Department is pressing for a response.
Italy
68. The fees charged by the Italian authorities for the consular endorsement of Hong Kong certificates of origin are contrary to Article VIII of the G.A.T.T. The matter is being taken up with the Italian Government through the British Embassy in Rome.
Norway
(a) Cotton Textiles
69. Following consultations held at the request of the Norwegian Government in Oslo, London and Hong Kong in May, June and September 1968, Hong Kong finally agreed to restrain exports of four additional categories of cotton garments for a period of two years commencing 1st October 1968. The new agreement replaced and superseded the one reached in 1967 in respect of cotton nightwear. The aggregate restraint limit for 1968-69 is 143,000 dozens, and the flexibility provisions included annual growth, swing and carryover. On the advice of the Cotton Advisory Board, 1968-69 quota for the night- wear category was allocated to companies on the basis of shipment performance against allocations during the previous restraint period; the 1968-69 quota for the three new categories was allocated to com- panies on the basis of shipment performance during the reference period 1st October 1967 to 30th September 1968. Final allocations were made towards the end of November 1968.
(b) Non-Cotton Textiles
70. After similarly protracted consultations, Hong Kong also under- took to limit exports to Norway of women's and girls' wool and acrylic fibre knitwear and woven man-made fibre blouses and jumpers for a period of one year commencing 1st October 1968. On the advice of the Cotton Advisory Board, quota for these items was allocated to companies on the basis of their shipment performance during the reference period 1st October 1967 to 30th September 1968. Final allocations were made towards the end of November 1968.
17
Republic of Ireland
71. The Irish Government have maintained discriminatory quota restrictions on the imports of certain textile items from Hong Kong since 1964, and the matter, which has been the subject of a number of formal exchanges, is, I regret to say, still unresolved.
Sweden
(a) Cotton Textiles
72. As a result of consultations, held at the request of the Swedish Government, in Stockholm, London and Hong Kong during the spring and summer of 1968, Hong Kong finally agreed to restrain exports of five categories of cotton garments for a period of one year from 1st June 1968. The aggregate restraint limit is 5.37 million pieces. On the advice of the Cotton Advisory Board, quota was allocated to com- panies on the basis of shipment performance during the reference period 1st January to 31st December 1967. Final allocations were made in mid-July 1968.
73. At the same time, Hong Kong also agreed to institute a system of export authorizations for five other categories of cotton garments for the period 1st June 1968 to 31st May 1969.
(b) Non-Cotton Textiles
74. Following further consultations over the same period, the Hong Kong Government undertook to limit exports of women's and girls' knitted outerwear of wool and synthetic fibres, and men's and boys' anoraks and similar jackets of synthetic fibres for a period of twelve months from 1st July 1968. The restraint limits are 1,675,000 and 180,000 pieces respectively.
75. Hong Kong also undertook to institute an export authorization system for five categories of woollen and synthetic knitwear and woven garments for a period of one year. However, in December 1968, the issue of export authorizations for three of these items, namely men's and boys' woollen knitwear and discontinuous synthetic fibre woven shirts, and women's and girls' continuous synthetic fibre anoraks, was suspended at the request of the Swedish Government. Consultations ensued in February 1969 at Geneva and, as a result, the issue of export authorizations for synthetic fibre dress shirts was resumed. However, Hong Kong undertook voluntarily to limit exports of the other two items. Woollen knitted outerwear for men and boys was
18
merged into the quota for women's and girls' woollen and synthetic fibre knitwear, and women's and girls' continuous synthetic fibre anoraks were grouped in with similar garments for men and boys already under restraint. Suitable adjustments were made to the restraint limits.
LONDON OFFICE
76. New administrative arrangements were introduced in the London Office in June, whereby the functions undertaken by it on behalf of the Department were separated from the rest and made the respon- sibility of an Assistant Director of the Department resident in London, assisted by a Trade Officer. This arrangement enabled these functions. to be extended from a watching brief covering Hong Kong's commercial relations with Britain to a similar role, together with informal liaison in Whitehall, on all commercial policy matters dealt with by the British Government which affect Hong Kong. It also facilitated a more active programme of liaison with the British Government departments con- cerned than had been possible hitherto. Contacts were strengthened or established with a number of departments both in the Board of Trade and also in the new Foreign and Commonwealth Office which was established in October. The Office maintained its routine services to businessmen, including the issue of various certificates pertaining to Hong Kong's cotton textiles agreement with the United Kingdom. Work on the safety of Hong Kong products also continued.
77. As a result of its new role, the Office was closely involved in the consultations with Norway and Sweden in June and July, and again with Sweden in December and in February. The Office was also con- cerned with matters affecting Hong Kong's commercial relations with more than twenty other countries during the period under review.
78. In August a request was made by the British Government for discussions on Hong Kong exports to Britain of wide sheeting and sheets, within the terms of the Heads of Agreement between Britain and Hong Kong on cotton textiles. The Assistant Director of the Department resident in London engaged in informal discussions at the Board of Trade on the request prior to the visit to Hong Kong in September of a British Government delegation for formal consultations. See paragraph 59.
79. On 22nd November, the Chancellor of the Exchequer announced in the House of Commons, new measures by the British Government
19
aimed at curbing consumer spending and righting the balance of pay- ments. These measures included a surcharge of 10% on Purchase Tax and on certain Duties; a further tightening of credit restrictions and a requirement that importers deposit with Customs half the value of imports of a wide range of items, this deposit to be held by Customs free of interest for 180 days. The introduction of this import deposit scheme caused considerable uncertainty and confusion in the import trade and inevitably led to a large number of enquiries to the London Office for information on the position both in Britain and Hong Kong. Because of the need for the new scheme to be introduced without forewarning there were areas where it had not been possible for the British Government to anticipate difficulties in implementation and it took some time for these to be clarified. The Office was in close and continuous contact during this period with the various British Govern- ment departments concerned in order to clarify details of the scheme and to ensure that the arrangements proposed by Hong Kong banks to use their high liquidity to assist importers of Hong Kong goods were generally acceptable to the British Government.
80. The Assistant Director attended by invitation meetings of the committee of the Hong Kong Association and also certain meetings of the Hong Kong Section of the London Chamber of Commerce. He is a member of the Hong Kong Public Relations Advisory Committee in London.
81. Mr. A. L. PURVES, Trade Officer, was posted to the London Office in November to replace Mr. A. G. TRICKETT, Senior Trade Officer, on the latter's retirement. Mr. PURVES was subsequently trans- ferred to Brussels in March to stand in for Mr. P. V. DODGE, the Assistant Director of the Department acting as Counsellor for Hong Kong Commercial Affairs there, who was incapacitated by illness.
82. The Deputy Director, Commercial Relations, of the Department visited the Office in December and, accompanied by the Assistant Director, held discussions with the senior officials in the Foreign and Commonwealth Office and the Board of Trade, who were most closely involved in determining British Government policy on Hong Kong's external commercial relations.
BRUSSELS OFFICE
83. The Brussels Office continued to fulfil its principal functions of observing closely economic and political developments within the
20
European Common Market, making and maintaining contact with Community officials and the representatives of the various Member States and other national Governments in Brussels, and reporting such developments regularly to the Department.
84. The Deputy Director (Commercial Relations) visited the office in December 1968 during the course of a tour of the Department's overseas offices located in Europe. Arrangements were made on that occasion for him to meet the British Ambassador, Sir Roderick BARCLAY, and the Ambassador for the U.K. Delegation to the European Economic Community, Sir James MARJORIBANKS. The Deputy Director also visited the Commission of the E.E.C. where he was introduced to the Director General of External Trade, Mr. Edmund WELLENSTEIN, and his two deputies.
85. The Assistant Director visited Hong Kong in June 1968 to attend the textiles negotiations between the Hong Kong and Benelux Governments.
86. The Assistant Director also visited a number of Community capitals during the year to meet officials of the British Government and the national Governments, members of trade organizations, and businessmen trading with Hong Kong. Useful discussions were held on various commercial and economic matters during these visits.
21
CHAPTER 3
COMMERCIAL RELATIONS 'R' DIVISION-REST OF WORLD
(OUTSIDE EUROPE)
(See also Chapter 1, paragraphs 8-13)
87. The Commercial Relations 'R' Division has responsibility for matters concerning Hong Kong's commercial relations with all countries outside Europe, and also for international trade organizations and the department's Geneva and Washington offices. During the year under review, the Division issued three country pamphlets on the Federal Republic of Germany, Bahrein and El Salvador. The texts of a further four, on Venezuela, Panama, Mexico and Australia were completed and forwarded to the relevant British posts abroad for their comments. These pamphlets are designed to assist Hong Kong businessmen interested in trade with the territories concerned by providing reference to the country's trading arrangements with Hong Kong. The pamphlets are available free of charge to commercial and industrial association in Hong Kong.
INTERNATIONAL TRADE ORGANIZATIONS
General Agreement on Tariffs and Trade (G.A.T.T.) (a) Cotton Textiles Arrangement (C.T.A.)
88. The Cotton Textiles Arrangement entered into the second year of its extended operation. A schedule of the various restraint limits negotiated with Hong Kong under the C.T.A. (and the Long Term Arrangement which preceded it), and Hong Kong's export performance is at Table 2.
(b) Other Work of the G.A.T.T.
89. The year saw meetings of the various Working Parties es- tablished by the G.A.T.T. Council to study certain problems arising in the G.A.T.T. framework. These covered balance of payments difficulties, rules relating to rebate of certain indirect taxes on exports and the charging of such taxes on imports (i.e. border tax adjustments) by certain contracting parties, and the new preference arrangements between India, the United Arab Republic and Yugoslavia.
22
90. The Committee on Trade and Development met during the year to formulate further work programmes regarding the trading problems of developing countries.
91. With the aid of the G.A.T.T. Secretariat, the Committee on Trade in Industrial Products drew up a consolidated inventory of non- tariff barriers affecting trade in industrial products. The department had earlier contributed to the compilation of this inventory by providing information on non-tariff barriers maintained by other contracting parties on imports from Hong Kong.
92. New anti-dumping legislation introduced by countries signatory to the Agreement on Implementation of G.A.T.T. Article VI (the Article relating, inter alia, to anti-dumping measures) was examined by the newly established Committee on Anti-Dumping Practices. Hong Kong is a party to the Agreement by virtue of Her Majesty's Govern- ment's acceptance extending to her dependent territories. The depart- ment has followed discussions on this subject closely to ensure that Hong Kong's interests are safeguarded.
93. The 25th Session of the Contracting Parties to the G.A.T.T. was held from 12th to 29th November 1968. The Assistant Director of the department's Geneva office attended throughout the Session, accom- panied for part of the time by the Deputy Director, Commercial Rela- tions, who was then on a tour of the department's overseas offices in Europe.
(c) Training
94. During the year, a Trade Officer attended a four-and-a-half- month in-service training course on commercial policy in Geneva run by the G.A.T.T. Secretariat in collaboration with the United Nations Technical Assistance Bureau. He was the fifth officer sent by the department to this course.
United Nations Conference on Trade and Development (U.N.C.T.A.D.)
95. The U.N.C.T.A.D. Trade and Development Board met in May and September 1968. Its main pre-occupation was to lay down the lines of future work by the permanent machinery of the U.N.C.T.A.D. and to decide on certain changes in organization and procedure in the light of the first four years' working of the U.N.C.T.A.D. Other important questions considered included preparations for the Second United Nations Development Decade (1971 to 1980), the transfer of technology
23
from developed to developing countries, trade expansion, economic co- operation between developing countries, and certain shipping problems.
96. Of great importance to Hong Kong was the meeting in October 1968 of the Committee on Manufactures which drew up a new work programme on tariff and non-tariff barriers of significance to developing countries, and gave preliminary consideration to the outline of a study on restrictive business practices.
97. The department paid special attention to the U.N.C.T.A.D. Special Committee on Preferences which was engaged in drawing up a generalized non-discriminatory system of preferences by developed countries in favour of developing countries. In particular, the Assistant Director, Geneva office, closely followed developments in an ad hoc group on preferences set up in the Organization for Economic Co- operation and Development (O.E.C.D.). This group comprised all O.E.C.D. member countries plus Australia and New Zealand.
United Nations Economic Commission for Asia and the Far East
(E.C.A.F.E.)
98. The Hon. C. Y. KWAN, C.B.E., J.P., a member of the Executive Council, headed the Hong Kong delegation to the 24th Plenary Session of the E.C.A.F.E. which was held in Canberra from 17th to 30th April 1968. He was accompanied by the Director of Commerce and Industry, the Assistant Economic Secretary and an Assistant Trade Officer.
99. A delegation from Hong Kong led by the Hon. T. K. ANN, a member of the Trade and Industry Advisory Board, attended the 12th Session of the E.C.A.F.E. Committee on Trade which was held in Bangkok from 6th to 15th January 1969. He was accompanied by two officers of the department.
International Cotton Advisory Committee (I.C.A.C.)
100. Mr. Jack C. TANG, Managing Director of South Sea Textile Manufacturing Co. Ltd. attended the 27th Plenary Meeting of the I.C.A.C. held in Athens from 3rd to 12th June 1968. Mr. TANG, who was briefed by the department, was attached to the British delegation as an adviser.
INDIVIDUAL COUNTRIES
Australia
101. In May 1968, at the request of the Australian Government, consultations were held in Hong Kong regarding export restraint by
24
Hong Kong on certain constructions of cotton denims, drills, dungarees and jeans. It was subsequently agreed that no export restraint should be exercised, but that an export authorization system should be implemented to enable both Governments to keep a watch on the pattern of trade in these fabrics.
102. In July 1968, the Australian Government imposed 'dumping' duties on imports from several sources, including Hong Kong, of bed sheets, pillow cases, bolster cases, and of cotton sheeting of a kind suitable for making these items. The 'dumping' duties, which were applied retrospectively from 20th February 1968, are equivalent to the amount by which the f.o.b. export prices are lower than what the Australian authorities regard as 'normal values'. The 'normal values' for Hong Kong were established by the Australian Government after the visit of an Australian customs representative to Hong Kong in June 1967.
103. In September and as the result of a Special Advisory Authority enquiry, the Australian Government imposed an additional duty on imports from all sources of woven man-made fibre and cotton blend shirts. The additional duty was effective from 15th August 1968 and is temporary in nature, pending the outcome of a Tariff Board enquiry.
104. In mid 1968 and early 1969, the Australian Government announced extensions to its Tariff Preference Scheme for Less Developed Countries to cover the imports of an additional one hundred and fifteen items. The total number of items included in the scheme now stands at over two hundred: of these, Hong Kong has been excluded from preference entitlement on six items on the grounds that Hong Kong's exports are already highly competitive.
Canada
105. Following consultations with the Canadian authorities in Ottawa during July 1968, a new one-year agreement covering the export of cotton shirts, blouses, trousers, nightwear, towels and indus- trial wiping cloths from 1st October 1968 was reached with Canada under Article 3 of the Cotton Textiles Arrangement. The provisions of the agreement were generally similar to those of the previous agree- ment, with a 3% increase in the restraint limit for nightwear, improved swing facilities and the addition of towels including industrial wiping cloths to the list of restrained items at aggregate restraint limits of
25
1.35 million pounds for towels and 14,607,093 square yards for garments.
106. Hong Kong also undertook to continue to restrain exports of shirts, blouses and trousers made from 100% polyester or from polyester/cotton blends during the year commencing 1st October 1968. The export limits remained the same, but improved flexibility in the form of a 10% swing facility between categories was added.
107. Control arrangements for 1968-69, along the lines of those for 1967-68, were announced in September 1968, and final quotas for 1968-69 were issued in October 1968.
108. Exports of cotton and polyester/cotton apparel categories under restraint to Canada during the first half of the current textile year showed decreases in all sectors, when compared with the same period in the previous year. The decreases registered in the various groups were as follows:
Cotton apparel
**
...
...
***
19%
Cotton piecegoods Polyester/cotton apparel
...
...
...
10.5%
24%
109. In February 1969, the Canadian Department of National Revenue informed a number of Hong Kong garment exporters that the 'Fair Market Value' (the basis on which import duties are calculated) would be increased in the case of garments from Hong Kong by adding 30% to 60% to the cost of production. In view of the adverse effect which this ruling would have on Hong Kong's trade with Canada, the department has been actively assisting exporters involved in approach- ing the Canadian authorities for a reduction in the percentage mark-up. The final outcome is awaited.
Indonesia
110. In August 1968, the Indonesian Government issued a series of decrees affecting imports from Hong Kong and Singapore by imposing a strict survey requirement on imports as a pre-requisite to payment against letters of credit opened under the 'Bonus Export Certificate' system. These discriminatory measures were allegedly the result of investigations carried out by Indonesian authorities into malpractices by certain traders with the object of evading Indonesia's foreign exchange regulations.
111. At the end of November 1968, a team of four Indonesian officials visited Hong Kong to undertake further investigations and to
26
DEPARTMENT LIBRARY
seek out-of-court settlement with parties allegedly involved in exchange malpractices. The department afforded full assistance to the Indonesian team in its work.
112. Since August 1968 the department has been in regular touch with trade and banking circles in Hong Kong and the British Embassy in Djakarta with a view to securing the early removal of the dis- criminatory survey report requirements. Between 18th and 20th March, two Assistant Directors of the department visited Djakarta and had a series of talks with the Indonesian authorities to the same end. The reactions of the Indonesian Government to this visit are awaited.
Republic of Korea
113. In answer to an invitation extended by the Vice-Minister of Commerce and Industry of the Republic of Korea, the Director accom- panied by two senior officers of the department, paid a visit to the Republic between 20th to 25th February 1969. While in Korea, dis- cussions were held with Korean officials, commercial and trade organi- zations on topics of mutual interest and visits were made to a number of industrial areas.
New Zealand
114. The Government of New Zealand announced a new import licensing schedule for the financial year 1968-69. In general, allocations represented an increase of 15% on 1967-68 imports in items of interest to Hong Kong. In addition, a hundred and twenty-two items, some of which are of interest to Hong Kong, have been exempted from import licensing.
South Africa
115. In December 1968 and following the visit to Hong Kong in June of an official delegation from South Africa, the South African Government announced the removal of several anti-dumping duties on imports from Hong Kong and the promise of a continuing review of other such duties. Subsequently, anti-dumping duties on two other items were also removed. This is the first time that the South African authorities have abolished anti-dumping duties on Hong Kong products, although most of the withdrawals were accompanied by a substantial rise in the corresponding import tariffs.
27
Sudan
116. On 16th April 1968, the Government of Sudan lifted a ban, which was first imposed in 1965, on most imports from Hong Kong. Textiles and ready-made clothing remained on the banned list.
United States of America
117. Hong Kong's exports of cotton textiles to the United States in the third year of the bilateral agreement, which ended on 30th Septem- ber 1968, continued at a high rate and 99.5% of the yardage available for shipment, a total of 379.6 million square yards, including 9.8 million square yards carried over from the previous textile year, was utilized. This quantity represented an increase of 17.2% over shipments in the previous year which had totalled 324 million square yards.
118. Exports during the first half of the fourth bilateral year (which runs from 1st October 1968) totalled 209.2 million equivalent square yards (53.4% of the aggregate limit). This represented an increase of 44.7 million equivalent square yards, or 27.2% over exports during the corresponding period of the previous year.
119. The annual review of the United States/Hong Kong Bilateral Agreement was held in Washington in July 1968. There were no major areas of concern to either party in the operation of the Agreement and the review was, therefore, of a routine nature, discussions being mainly on classification matters. Control arrangements for the fourth bilateral year, along the same lines as those for the previous year, were an- nounced in September 1968. Final quotas for the fourth bilateral year were issued in October 1968.
120. The American Importers Association brought an appeal to the U.S. Court of Appeals against Rule 36 promulgated by the U.S. Federal Trade Commission in February 1968 under the Wool Labelling Act. The Rule, which would have allowed the Federal Trade Commission to subject imported woollen apparel to laboratory tests, was declared invalid by the Court in March 1969.
121. In December 1968, the U.S. Government, as a signatory to the Agreement on Implementation of Article VI of the G.A.T.T. (which was drawn up in 1967 under the auspices of the G.A.T.T.) promulgated new anti-dumping regulations to bring U.S. dumping laws into line with an agreed international Code of Practice.
28.
GENEVA OFFICE
122. The major task of the Geneva Office is to follow the work of the international economic organizations located in Geneva, particularly the General Agreement on Tariffs and Trade (G.A.T.T.) and the United Nations Conference on Trade and Development (U.N.C.T.A.D.), but also the European Free Trade Association (E.F.T.A.), from the point of view of Hong Kong's interests. Of these the G.A.T.T. is the most important for Hong Kong.
123. In the course of the past year the Assistant Director followed closely developments in all these Organizations and represented Hong Kong's interests where necessary. He reported regularly to the Depart- ment on the developments and maintained a continuous dialogue on the issues under consideration. In carrying out these tasks, he kept in contact with the Secretariats of the International Organizations con- cerned and with the Missions of countries represented in Geneva and worked in close collaboration with the main United Kingdom Mission, of which the Hong Kong Office forms a part.
124. As a new task during the year, the Assistant Director has also been following certain developments in the Organization for Economic Co-operation and Development (O.E.C.D.) in Paris, particularly the relations between this Organization of the developed countries of the Western World and the developing countries. The O.E.C.D. acts as the co-ordinating body for the developed countries' policies in U.N.C.T.A.D. In particular, it has played a large part in co-ordinating the attitudes of those countries towards the proposal for generalized preferences for developing countries in the markets of developed countries, one of the main questions now under consideration in U.N.C.T.A.D. and of considerable importance for Hong Kong. The Assistant Director visited Paris on several occasions as a member of the United Kingdom delegation for O.E.C.D. meetings on this subject.
125. In addition to the above the Assistant Director visited Stock- holm, Oslo and London in May and June 1968 as a member of the Hong Kong delegation for the negotiations on Hong Kong's exports of certain garments to Sweden and Norway. Further subsidiary negotia- tions with Sweden were also held in Geneva in February 1969.
126. Visitors to the Office during the year included the Deputy Director, Commercial Relations, the Assistant Director 'E' Division and Trade Officers of the Department, the Commissioner of Labour
29
for an ILO meeting and a considerable number of representatives of Government Departments in London attending meetings in Geneva.
WASHINGTON OFFICE
127. The Washington Office pursued the diplomatic activities normal to a section of the Commercial Department of the British Embassy, maintaining continuous contact with numerous American official and unofficial organizations and with foreign Embassies, making official representations where these were required for the fur- therance of Hong Kong interests, and reporting to the Hong Kong Government developments likely to affect Hong Kong's economy.
128. Specific activities included negotiations with the Foreign Assets Control of the U.S. Treasury on certification procedures, and consulta- tions with the State Department and other American governmental organizations on problems arising over Hong Kong exports of certain categories of cotton textiles.
129. Visitors to the Washington Office from Hong Kong included the Chairman and the Executive Director of the Trade Development Council in June; the Deputy Director, Commercial Relations, and other officials of the Commerce and Industry Department, who took part in July in a review, with American officials, of the workings of the Bilateral Agreement on Cotton Textiles.
130. The Assistant Director paid a two-week visit to Hong Kong in January.
131. Apart from dealing with trade matters, including trade com- plaints both against and by Hong Kong firms, the Washington Office found itself more and more involved in answering enquiries on every aspect of Hong Kong life.
30
CHAPTER 4
INDUSTRY DIVISION
CERTIFICATION BRANCH
Policy
132. Certificates of origin and preference play an important role in the export trade of the Colony. In a free market environment, it is essential that domestically manufactured goods shall be accepted into the markets of the world without question as to their origin. To this end, the Hong Kong Government has for many years accepted respon- sibility for ensuring that the Hong Kong certification system remains efficient and that certificates are issued under origin criteria and rules which take an internationally acceptable form. The Commerce and Industry Department discharges Government's overall responsibility in this field. The Certification Branch of the department is responsible for administering the complicated certification system which supports ex- ports of Hong Kong products.
General
133. The Certification Branch issued 433,916 Standard, Common- wealth Preference and Comprehensive Certificates of Origin for local products, an increase of 4.5% on the previous year. The declared value of goods certified was $4,871 million, representing 55% of total domestic exports during the year. Compared with $3,938 million for the previous year the certified value increased by 24%. In addition, it was estimated that the value of local products certified by the four government approved certificate of origin issuing bodies, i.e. the Hong Kong General Chamber of Commerce, the Indian Chamber of Com- merce, Hong Kong, the Chinese Manufacturers' Association of Hong Kong and the Federation of Hong Kong Industries, was approximately $2,500 million. Taking this into account, the total value of local products certified by Government and the approved non-government organizations represented 83% of total domestic exports.
134. With regard to domestic exports to Hong Kong's three principal markets, the United States of America, the United Kingdom
31
and West Germany, these totalled $5,611 million. 67% of this amount was supported by certificates issued by the branch.
135. At 31st March 1969 the number of manufacturing establish- ments registered with the Department for the issue of certificates was 9,147, a net increase of 1,536 or 20% on the previous year. This increase was due partly to increased industrial activities in the local economy but mainly due to the decision of the Certification Co- ordination Committee (which comprised the department, the Hong Kong General Chamber of Commerce, the Indian Chamber of Com- merce, Hong Kong, the Chinese Manufacturers' Association of Hong Kong and the Federation of Hong Kong Industries) that as from 1st March 1968, certificates of origin would only be issued for products manufactured by factories registered with the department.
136. Table III records the issue of certificates and the declared value of the certified goods together with the corresponding figures for the two preceding years.
Fees for Certificates of Origin
137. Fees for certificates, collected by means of postage stamps, are $10 for Standard Certificates of Origin, $35 for Commercial Compre- hensive Certificates and $5 for all other certificates. Revenue from certificates amounted to $5,128,000 during the year, a 7.7% increase over the previous year.
Standard Certificates of Origin
138. The number of Standard Certificates of Origin issued during the year totalled 151,903, an increase of 12% over the preceding year. The declared value of goods certified was $2,059 million registering an increase of 29%. The approved non-government certificate issuing bodies collectively issued 202,768 certificates with an estimated certified value of goods worth about $2,500 million.
139. Towards the end of September 1968, the Benelux Authorities required all shipments of cotton products from Hong Kong, with the exception of yarn, to be covered by Certificates of Origin issued by the department.
Commonwealth Preference Certificates
140. A total of 87,024 Forms E-120 and 22,632 Commonwealth Preference Certificates were issued in support of exports valued at
32
$1,257 million and $176 million respectively to Britain and other Commonwealth territories. 93% of all domestic exports to Britain were covered by Forms E-120 and, despite the British credit squeeze and the import deposit scheme introduced towards the end of 1968, the value of exports certified increased by 9% compared with the previous year. The downward trend recorded in recent years with exports under preference to other Commonwealth territories was reversed and an in- crease of 16% occurred. This rise was mainly attributed to expansion in trade with New Zealand and Fiji.
141. An agreement was reached with H.M. Customs and Excise, London on the standardization of all undertakings given by cotton spinners producing 25% and 50% Commonwealth cost content yarns. Under the agreement, detailed segregation arrangements which were previously required to be stipulated were deleted from the Standardized undertaking for operational convenience, but spinners still had a legal responsibility to continue to maintain adequate segregation arrange- ments at all stages of manufacture.
142. A revised edition of the Commonwealth Preference Chart was placed on sale to the public in October 1968. The chart is a guide to the Commonwealth content percentage requirements of Commonwealth territories which accord preference to Hong Kong products. The major amendments were in respect of the requirements of Malaysia and Malawi.
143. As from mid-March 1968, Cyprus required goods imported from Hong Kong under claim to preference to be supported by Cer- tificates of Origin and Consignment. These certificates need not be endorsed by preference accountants or the department. Where export- ers preferred not to disclose the name of the manufacturer, the certificate must be countersigned by any one of the four approved non-government certificates.
Comprehensive Certificates of Origin
144. The total number of Commercial Comprehensive Certificates of Origin issued was 54,192, representing an increase of 15%. The value of goods exported under all types of Comprehensive Certificates of Origin registered an increase of 32% over the previous year. This was due to:
(a) the continued expansion in cotton textile exports to the United States in terms of value, arising from quality improvement in
33
the quota controlled products and the increasing use of synthetic blend and permanent press finish fabrics; and
(b) the sustained growth in the export of human hair wigs to the United States which in the year under review reached $227 million, an increase of 14% over the previous year.
Hair Wigs
145. A survey of human hair importers and wig manufacturers was conducted during the year and as a result the registration of 30 import firms and 24 factories found to have ceased operation was cancelled. At 31st March 1969, 120 factories were registered with the department.
146. The department introduced a number of measures to improve the efficiency and security of the factory registration and certificate issue procedures for raw human hair and finished wigs. In January, the industry was notified that Indonesian human hair must be supported by Indonesian certificates of origin signed by authorized Indonesian officials and imported direct from Djakarta before they could be used in the manufacture of wigs for subsequent export to the United States.
147. In the course of the year, human hair originating from Pakistan and Thailand became acceptable for Comprehensive certification pur- poses. This brought the approved sources of supply of raw human hair to eight countries, i.e., India, Indonesia, Japan, Pakistan, the Philippines, South Korea, Taiwan and Thailand. Indonesia remained the leading supplier, providing 78% of the hair imported during the year for use by the industry for C.C.O. exports of wigs.
Agricultural Products
148. Following consultations with the representatives of the industry and the Agriculture and Fisheries Department, it was decided:
(a) that there was no economic justification to continue to certify kuzu vine, cabbage, mushrooms, yam, lotus seed and wongpei. This decision was implemented on 1st July 1968;
(b) that the Form C. & I. 160C (Declaration by Primary Producer) should be revised to allow the Agriculture and Fisheries Depart- ment to certify the quantity of an agricultural product which was suitable for export to the U.S. in the fresh state. The revised form was introduced on 1st February 1969.
34
Sharks Fins and Mixed Silk/Wool Piecegoods and Garments
149. The U.S. Foreign Assets Control advised the department that processed sharks fins were considered non-presumptive within the mean- ing of the F.A.C. regulations. Accordingly, the C.C.O. registration procedure concerned was cancelled. The department was also informed that silk/wool cloth having 51% or more wool content and garments manufactured therefrom did not require Comprehensive certification.
Certificates of Processing
150. 854 Certificates of Processing were issued for goods processed or assembled in Hong Kong but not qualified under the established origin criteria rules to receive Certificates of Hong Kong Origin.
Miscellaneous Certificates
151. The Certification Branch also countersigned certificates of origin issued by the Agriculture and Fisheries Department for vegetable and marine products. In the year under review a total of 705 of these certificates were issued.
Certification Co-ordination Committee
152. The Certification Co-ordination Committee through which the department maintains close liaison in certification matters with the approved non-government certificate of origin issuing bodies, continued to meet at frequent intervals during the year. The Committee advised on standardization of origin criteria for cattle hides, frozen shrimps and prawns, round-steel bars, transistor radios, umbrellas and watches. Standardization of certificate application fees was also agreed by com- mittee members during the year and introduced by the member organizations. The Committee advised on matters arising from the certification requirements of overseas territories, the certification of commercial invoices, the problem of under-valuation and the use of brand names and trade marks on goods to be certified. A number of circular letters on certificate of origin matters were issued to the trade and industry following discussion by the Certification Co-ordination Committee.
153. A special sub-committee was formed to consider the need for further standardization of certification issue procedures in use by the organizations represented on the Committee.
35
INDUSTRY INSPECTION BRANCH
General
154. The Industry Inspection Branch provides an essential service within the system under which the department, in conjunction with the four approved non-Government certificate of origin issuing organiza- tions, issues various types of origin certificates. The branch is respon- sible for the physical policing of the complicated controls governing the registration of some 9,000 commercial and industrial undertakings for certificate of origin purposes and the issue of nearly half a million certificates of origin and preference every year. The certification system supports nearly 90% of all exports of domestically produced goods and the integrity of the system depends largely upon the efficiency of the inspections carried out by the Industry Inspection Branch. Branch officers carry out initial inspections leading to the registration of firms for certification purposes--this includes assessment of their productive capacity, ability to comply with approved procedures, and so on; the irregular re-inspection of registered firms to ensure their continued adherence to the conditions governing their registration for origin cer- tification purposes; and the conduct of surprise spot-checks of individual consignments at registered premises prior to loading abroad vessels/ aircraft for export. From these inspections, it is necessary to carry out detailed investigations where discrepancies are discovered. In some cases, investigation may lead to prosecution of a person or firm for certifica- tion malpractice. Additionally, the department may suspend the regis- tration of a factory for a period or, in very serious cases, cancel registration altogether.
Inspections
155. During the period under review, the branch completed a total of 23,024 factory and consignment inspections, excluding those carried out at the Kowloon Inspection control examination centre—which represent an increase of 42% over the number recorded for 1967-68. This considerable increase was the result of improved efficiency of the field inspection staff, the majority of whom have now acquired an average of two years experience on inspectional work, and the greater emphasis directed towards the examination of individual consignments prior to export. Arising from the total number of inspections completed during the year, 3,628 certification and factory registration irregulari- ties were discovered of which approximately 1,000 required further investigation.
36
156. A breakdown of the inspection figures for 1968-69 with com- parative figures for the preceding year is as follows:
(a) Inspections
(i) Initial Inspections for various types of C.O. (ii) Re-inspections
...
(iii) Preference Undertaking Checks
(iv) C.C.O. Procedural Checks...
(v) Textile Quota Checks
...
(vi) Origin Certification Consignment Checks
1968-69 1967–68
4,104
•
4,300
6,029 2,905
476
409
837
733
650
313
...
10,918
7,531
23,014 16,191
1968-69 1967–68
6
2
735
230
8
35
18
121
74
(b) Miscellaneous
Total
...
(vii) Industrial Surveys (No. of premises visited: 587)... (viii) Number of paint samples drawn for determination
of lead content
...
...
(ix) Number of pewterware samples drawn for deter-
mination of lead content (x) Number of transistor radio samples drawn for determination of no. of functional transistors... (xi) Number of miscellaneous enquiries, including
trade complaints
...
Kowloon Inspection Control
...
•
157. In addition to the field inspections reported in the preceding paragraph, the Kowloon Inspection Control situated in the premises of the Hong Kong and Kowloon Wharf and Godown Company Limited undertook the physical examination of certain categories of consign- ments. A breakdown of these inspections completed during 1968-69 as compared with those recorded for the preceding year, is as follows:
(i) Selected item under Comprehensive Certificates
of Origin (Commercial)
•
1968-69 1967-68
24,189 22,898
...
3,592
3,630
(ii) Cotton garments, made-ups and finished piece- goods exported to U.K. under the High Hong Kong Cost Content Scheme
...
(iii) Embroidered handkerchiefs and naperies under Standard Certificates of Origin/Commonwealth Preference Certificates
...
(iv) Antiques to the United Kingdom ..
(v) Consignments of imported raw hair examined
18
12
40
54
...
1,963
1,453
158. During the year, exports of hair wigs to the United States con- tinued to expand. Most of these were supported on export by Com-
37
prehensive Certificates of Origin and the value of such goods inspected was $227 million, an increase of 14% over the figures recorded for the previous year. To ensure that adequate controls were maintained by the department over imported raw hair for use by hair product manufac- turers exporting to the United States market, 1,630 consignments of imported raw hair weighing 882 tons were escorted from their point of entry into Hong Kong directly to the Kowloon Inspection Control by branch officers for physical examination.
Industrial Surveys
159. Branch staff carried out a number of industrial surveys, in con- junction with the Industrial Development Branch of the department, during the year. These included surveys to obtain information on the financial loan facilities available to small-scale industries; on labour availability within industry; and to collect data for use by a proposed Industrial Mission to the United States. In addition, the branch pro- vided staff in order to verify the domestic and export price levels of a limited range of manufactured products; and to substantiate the bona- fides of all raw hair importers and hair product manufacturers registered with the department for comprehensive certification purposes.
Investigations
160. Throughout the year the Investigation Section was fully com- mitted in dealing with investigations into suspected certification mal- practice, some of which were initiated by foreign customs authorities. 243 detailed investigations were concluded during the year. As a con- sequence, 39 factories received written warnings for infringements of their registration conditions; the registration of 16 was suspended for periods ranging from 2 weeks to 3 months and 3 firms were removed from the certification registers maintained by the department and non- Government certificate of origin issuing organizations, for repeated certification malpractice.
Prosecutions
161. The staff of the Prosecution Section concluded 256 Court actions during the period under review. In the main, these dealt with the prosecution of 104 industrial undertakings/commercial firms/individuals for making false statements in declarations in support of applications for the issue of certificates of origin; breaches of legal undertakings given to the department; and contraventions of registration conditions.
38
Total fines imposed by the Courts in respect of actions taken during the year under review amounted to $143,280, substantially less than in the previous year. A detailed summary of all prosecutions undertaken during the period under review, is given below:
(i) Total actions (ii) Persons arrested (iii) Industrial
summonsed
...
...
...
...
1968-69 256
48
...
56
undertakings/Commercial firms
(iv) Total fines imposed by the Courts
(v) No. of persons sentenced to terms of
imprisonment
...
...
1967-68
162
30
35
$143,280 $435,860
2
1
5
Nil
...
(vi) No. of persons cautioned and bound over by
the Courts...
...
Anti-Corruption Measures
...
...
...
162. It is still a matter for regret that despite the widespread publicity on anti-corruption measures given by the department, manu- facturers have continued to make offers of money to branch staff engaged on factory inspection work. In this regard, a total of 92 such reports were received from field officers as compared with 108 during 1967-68. In all cases, where necessary, the manufacturer concerned was interviewed by senior officers of the branch and asked to co-operate with the department in eliminating 'tea-money' offers.
Branch Accommodation
163. As the result of a notification received from the Hong Kong Housing Authority indicating their intention to resume occupancy of the accommodation occupied by the Industry Inspection Branch at No. 1, Ma Tau Kok Road, 1st and 5th floors, Kowloon, in 1969, arrangements have been made for the branch to move to new premises situated on the 5th floor of Tung Ying Building, No. 100, Nathan Road, Kowloon. The move is expected to take place towards the end of May 1969. This will have the advantage of housing all sections of the branch under one roof with the exception of the Kowloon Inspection Control.
INDUSTRIAL DEVELOPMENT BRANCH
REVIEW OF INDUSTRY
Textile Spinning and Weaving
164. At the end of the period under review, there were 31 (31)* cotton spinning factories registered with the Department for certifica-
* Last year's figures shown in brackets.
39
tion purposes, employing 20,632 (20,554) workers and operating 786,688 (768,530) spindles, an increase of 18,158 spindles over the total at the end of the previous year. Production of cotton yarn was approximately 325 (309) million lbs. ranging mainly from 10s. to 60s. counts, carded and combed in single or multiple threads.
165. The production of cotton/synthetic fibre continued to increase. At the end of March 1969, ten cotton mills had adapted a percentage of their spindles to the spinning of polyester/cotton and polyester/ viscose yarn for weaving into shirting and other fabrics for which there was a growing demand. Total production was approximately 24 (14) million lbs.
166. Production of woollen and worsted yarn amounted to 21.11 (16.45) million lbs. Most of this yarn was utilized by the knitting sector, a small quantity being woven into cloth.
167. Production in the cotton weaving sector increased slightly during the year. Expansion in capacity continued but again on a diminishing scale. At the end of March 1969, there were 190 (190) cotton weaving factories registered with the department for Certificates of Origin, with a total of 23,862 (23,286) looms installed.
168. Total production of cotton piecegoods was approximately 797 (745) million square yards and consisted chiefly of cotton grey drill, shirtings, poplin, gingham, canvas and other bleached and dyed cloth and prints.
Textile Finishing
169. The dyeing, printing and finishing industry concentrated on such developments as multi-colour screen and roller printing, pre- shrinking processes, polymerizing for the production of drip-dry fabrics and finishing of synthetic materials. At the end of March 1969, there were 196 (174) textile finishing mills employing 8,530 (7,501) workers.
Cotton Knitting
170. The cotton knitting industry remained fairly static. According to records compiled by the Labour Department at the end of March 1969, there were 241 (233) cotton knitting mills employing 9,371 (9,048) workers. Products were mainly shirts, gloves and undergarments. Cotton interlock materials and warp-knitted cotton fabrics were also produced.
40
Woollen Knitting
171. The woollen knitwear industry continued to grow. At the end of March 1969, there were 591 (370) factories in operation employing 35,028 (26,093) workers. Exports of woollen knitwear of all types, including gloves, were valued at $736.4 million, an increase of 43% over the previous year.
Wearing Apparel
172. Hong Kong manufactures a wide range and variety of garments including shirts, underwear, outerwear (both knitted and woven), gloves, hats, socks and stockings. By the end of March 1969, the industry employed a labour force of 100,721 (83,638) in 1,891 (1,549) industrial undertakings. The value of exports in 1968-69 reached $3,274.1 ($2,376) million, an increase of 38% over the value for the previous year.
173. The proportion of permanent-press garments produced by the clothing industry continued to increase. As this finishing process is most successfully applied to mixed cotton/synthetic fabrics its popularity is encouraging the use of these fabrics.
Plastics
174. The plasticware industry is the second largest manufacturing industry in Hong Kong in terms of employment, production and export earnings. At the end of March 1969, there were 67,959 (58,923) workers employed in 1,963 (1,593) factories. Exports of plastic products increased substantially and were valued at $1,071.5 ($867.2) million. Exports of plastic toys and dolls registered a particularly substantial increase and were valued at $683.4 ($539.1) million in 1968-69. Exports of plastic flowers, fruit and foliage continued to increase and were valued at $323.4 ($279.5) million in 1968-69.
Light Metal Products
175. By March 1969 there were 1,704 (1,559) factories manufactur- ing light metal products registered with the Labour Department, with a total labour force of 41,101 (39,441). Metal torches and enamelware continued to represent the largest sectors of this industry. At the end of March 1969, 42 (43) factories employing 3,932 (4,395) workers were making torches: exports amounted to $84.6 ($77.6) million. Exports of enamelware in 1968-69 were valued at $42.1 ($40.8) million.
41
176. The manufacture of locks, padlocks and keys continued to grow steadily. At the end of March 1969, there were 58 (56) factories employ- ing 1,652 (1,646) workers manufacturing these products. Exports were valued at $35.8 ($27.3) million in 1968-69.
177. At the end of the period under review, there were 11 factories employing 1,556 (1,200) workers engaged in the production of stainless steel cutlery. The value of exports in 1968-69 was $20.2 ($17.5) million. Stainless steel utensils were also produced and exports were valued at $21.8 ($15.6) million.
178. The manufacture of machinery continued to expand. Machines produced included textile machinery, diesel engines, diesel operated generators and pumps, plastic moulding machines, power presses, lathes, planing machines and platen presses. Although these products were mostly sold locally, the industry also recorded useful exports during the year.
179. The watch and clock industry expanded substantially during the year. The value of exports including bands, cases and other acces- sories and parts amounted to $139.4 ($93.1) million in 1968-69.
Electronics
180. The electronics industry continued to grow. In March 1969, there were seven factories producing silicon transistors, six factories engaged in the production of computer components and twenty-nine factories producing radio components and sub-assemblies, six of which were engaged in the sub-assembly of integrated circuits. Exports of transistors in 1968-69 were valued at $149.4 ($131.5) million while exports of T.V. tuners amounted to $77.1 ($58.8) million.
181. During the year, exports of radios amounted to $366.4 ($215) million. There were 101 (63) factories in the radio industry at the end of March 1969.
182. The assembly of television receiving sets is a new diversifica- tion of the electronics industry. Exports of television sets were valued at over $1 million ($1,810) in 1968-69.
Hair Wigs
183. The hair wigs industry continued to grow. According to records compiled by the Labour Department, at the end of March 1969, there
42
were 202 (151) hair wig factories employing 16,220 (12,000) workers. Exports in 1968-69 rose sharply to $354.3 *($231) million.
Shipbuilding
184. Activity in the shipbuilding and repair industry continued satisfactorily with an increasing proportion of orders for repair and maintenance work. In March 1969, the industry employed 11,562 (10,053) workers.
185. Exports of yachts, pleasure cruisers and other small craft for the period under review increased slightly, being valued at $32.3 ($27) million.
Shipbreaking and Steel Rolling Mills
186. Activity in the shipbreaking industry continued to decline. The number of ships broken up during the period under review dropped to 33 (36) vessels totalling 158,000 (170,000) gross tons. In the steel rolling sector, statistics published by the Labour Department at the end of March 1969 showed there were 19 (16) mills employing 1,468 (1,063) workers. The industry relies heavily on domestic sales and, as a result of severe competition from imported bars and rods, most mills were operating well below capacity.
INDUSTRIAL PROMOTION
187. In common with most other developing countries, Hong Kong is anxious to attract capital and expertize from abroad to set up indus- trial undertakings in Hong Kong or to join in various forms of industrial co-operation with local industrialists or commercial entrepreneurs. The Industrial Development Branch is responsible for Government activities in this sphere and maintains liaison with trade and industrial associa- tions, banks, foreign consulates and missions and other Government departments. Advice and assistance was given to 37 (43) overseas investors interested in establishing plants in Hong Kong or entering into joint ventures with local industrialists. A number of visits to factories and industrial sites were organized. In addition, the branch helped a number of visitors who sought introductions to possible suppliers of goods in which they were interested.
* The 1967-68 figure was wrongly given in last year's report as $198 m.
43
188. In order to publicize Hong Kong's many advantages as a site for industrial investment, a brochure ‘Investment Hong Kong' was produced by the Industrial Development Branch and published by the Trade Development Council. It provides information required by potential investors and contains chapters on land and buildings, labour, tax laws, power, water supplies, communications and Government controls. This publication has been given a wide circulation.
LOANS FOR SMALL INDUSTRY COMMITTEE
189. The Industrial Development Branch provided the Secretariat for the Loans for Small Industry Committee which was appointed on advice from the Trade and Industry Advisory Board to consider the need for improved access by small-scale industry to medium term finance at fixed rates for re-equipment.
190. In order to enable the Committee to obtain factual information on which assessments could be made, the Industrial Development Branch conducted two surveys on sectors of manufacturing industry represented by factories employing less than 100 workers and factories with 100 to 200 workers. The reports of these surveys were presented to the Loans for Small Industry Committee for consideration.
LAND FOR INDUSTRY
191. The branch maintains up-to-date information on major indus- trial development areas, in order to assist Government in formulating and executing policy regarding industrial land and to provide informa- tion and assistance regarding the availability of industrial sites to over- seas companies interested in establishing factories in the Colony.
Kwun Tong
192. The number of factories at Kwun Tong, a major industrial estate, has continued to grow. In March 1969, 615 factories were in operation there as against 503 factories a year ago,
Tsuen Wan Kwai Chung Tsing Yi
193. Work on the Kwai Chung development scheme, which is the largest in Hong Kong, went ahead satisfactorily. This scheme, together with development in Tsuen Wan and on Tsing Yi Island, is designed to provide a self-contained industrial township with an ultimate popula- tion of 1.1 million. The older part of the reclamation area is already
44
intensively developed and many factories are in operation there. Some of the more recently reclaimed land has already been made available for industrial development. Following a recommendation by the Con- tainer Committee, Government is carrying out a feasibility study on a site at Kwai Chung reserved for a container terminal.
Industrial Land Sales
194. Sales of industrial land revived during the period under review, and the demand for industrial land was greater than that of last year. 12 (2) sites were sold by the Crown in the urban areas. The average unit land price was $35.50 per sq. ft. In the New Territories, a total of 8 (6) sites were sold by auction or granted by private treaty in addition to a number of sites obtained by exchange for agricultural land.
HEALTH AND SAFETY STANDARDS OF HONG KONG PRODUCTS
General
195. The Industrial Development Branch continued to investigate overseas complaints concerning alleged health hazards in Hong Kong products. Most of these complaints arose in Britain where there has been great concern from consumer protection agencies over all aspects of health and safety in consumer goods and particularly in toys. In dealing with this subject, the branch worked closely with the London Office and with officers of the Labour Department, the Urban Services Department and the Medical and Health Department in Hong Kong besides maintaining close liaison with the British Home Office.
196. During the year a total of 14 circular letters on health and safety were sent to registered consumer goods manufacturers to assist them to understand the nature of problems brought to the attention of the department and to help them improve the standards of specific products.
Toys-Lead Content
197. The department's random sampling and testing system for toys was intensified from July 1968 in anticipation of the enforcement on 1st November 1968 of the United Kingdom Toys (Safety) Regulations 1967 which lays down more stringent requirements for paints used on toys. The regulations require that the maximum permissible lead con- tent in the coating of paint on toys shall be 5,000 parts per million. During the period April 1968 to March 1969, 772 samples were taken
45
from toy factories and submitted to the Government Chemist for analysis. 57 samples were found to have a lead content in excess of 5,000 p.p.m. and measures were taken to prevent the sale of such toys. The testing service has thus encouraged individual manufacturers to exercise caution in the selection of paints.
198. During the year the branch received four overseas complaints regarding Hong Kong toys which were alleged to be coated with paint containing excessive lead. These complaints were made against a toy umbrella, a colour crayon, a plastic soldier and a toy police van. Investigations into individual cases were made and the manufacturers concerned all undertook to use suitable paint.
Lead in Pewterware
199. In September, the attention of the Branch was drawn to a report by the Hong Kong Trade Development Council representative in New York that a consignment of Hong Kong pewterware had been detained by the New York Customs pending tests on the lead content, the U.S. Food and Drug Administration being concerned that pewter articles intended for use as food or drink containers should be lead-free. This information was conveyed to local pewterware manufacturers.
Plastic Rain Coats
200. In July, the British Home Office drew the attention of the department to the death by suffocation of a fourteen month old child who was found lying face down on a plastic rain coat imported from Hong Kong. The Home Office, pointing out that the degree of hazard presented to children by this plastic material depended to a considerable extent on the thinness of the material, requested the department to urge Hong Kong manufacturers to include a suitable warning label on rain coats made of polythene film up to and including 150 guage. A circular was issued drawing the attention of the industry to this recommendation.
Minor Complaints Regarding Safety Standards
201. During the year, the branch received 10 other complaints from overseas regarding the safety standard of Hong Kong products. The manufacturers concerned were interviewed and all agreed to eliminate the defects in their products. A number of the improved products were subjected to tests by the Federation of Hong Kong Industries and the University of Hong Kong and later sent to the British Home Office for examination.
46
COPYRIGHT AND DESIGNS
Infringement of Patents and Designs
202. The branch received several complaints from overseas manu- facturers during the year, alleging their registered designs and patents were being infringed by certain Hong Kong firms. These allegations were brought to the notice of the Hong Kong manufacturers concerned, all of whom voluntarily stopped the sale and production of the offend- ing goods.
Designs Registry
203. In January 1969, the question of setting up a designs registry which had first been examined in 1958, was again raised and the Trade and Industry Advisory Board was consulted. Members agreed with the Department's proposal that existing circumstances still did not warrant the setting up of a registry and that the matter should again be left in abeyance. On the Board's advice, the department is, nevertheless, con- ducting an examination into the need for improved legislation pertain- ing to the protection of registered designs.
ECONOMIC COMMISSION FOR ASIA AND THE FAR EAST
204. The Industrial Development Branch was responsible for brief- ing the two-member delegation to the 4th Session of the Asian Industrial Development Council in Bangkok from 12th to 18th February 1969. The leader of this delegation was Mr. K. S. Lo, an unofficial member of the Trade and Industry Advisory Board.
205. The Branch also briefed a two-member delegation to the 21st Session of the E.C.A.F.E. Committee on Industry and Natural Re- sources, held in Bangkok from 18th to 27th February 1969. The leader of this delegation was Mr. James M. H. Wu, also an unofficial member of the Trade and Industry Advisory Board.
TRADE COMPLAINTS
206. The number of commercial disputes in which the department was asked to mediate continued to increase. A total of 1,323 (1,103) complaints were received from overseas firms or individuals during the year. A detailed breakdown is given in Table 4. The majority of the complaints were amicably settled after intervention by the department. Forty-seven local firms or individuals sought assistance in obtaining settlement of disputes with overseas firms.
47
CHAPTER 5
PREVENTIVE SERVICE AND DUTIABLE COMMODITIES
DIVISION
Creation of New Division
207. The Preventive Service has hitherto formed part of the Controls Division of the Department under the charge of the Assistant Director (Controls) who also had overall responsibilities for trade controls, food supplies and dutiable commodities. In recent years, the activities of the Preventive Service have increased in scope and complexity. With a present establishment of 895 uniformed officers and 36 civilians, it was felt that the Service should no longer have as its immediate head an officer with a wide range of other responsibilities but that it should be placed in the hands of a full-time member of the Service who should have the rank of Assistant Commissioner. A new Preventive Service and Dutiable Commodities Division was therefore created, responsible for the administration and policy of the Preventive Service, the day-to- day administration of the Dutiable Commodities Office and the Food Unit of the Emergency Services Corp.
PREVENTIVE SERVICE
General
208. Successes achieved by Excise land patrols and verification staff continued to be a dominant feature of Preventive Service activity and the attendant publicity accorded by the local press, radio and T.V. news media aroused considerable public interest. Several seizures of note were made after receipt of information which directly or indirectly could be attributed to the effects of the publicity. The success of action taken by the Preventive Operations staff cannot be so easily determined by seizures and arrests, but the widespread coverage effected by the marine patrols and search units is seen as an effective deterrent against smugglers in general, and in particular to those who would carry their illegal activities into the harbour area.
209. Relations with the travelling public have been good. A strict courtesy campaign conduced at both the airport and the Macau wharf
48
UNE DEPARTMENT LIBRA
was particularly successful and a review of administrative requirements did much to ease the strain formerly experienced by both travellers and officers during busy periods.
210. Regular meetings held with shipping, airline, commercial and industrial interests, whose activities bring them into frequent contact with the Preventive Service, produced frank and open discussions which helped to dispel misunderstandings and eliminate wasteful corre- spondence. Thanks to the publicity afforded by local news media, the community now has a better understanding of the functions of the Service within the framework of Government and of its responsibilities to the public.
211. Seizures of dutiable commodities showed a significant increase with diesel oil seizure figures rising to 61, 764 gallons (33,691)*, ferment- ing material-intended for use in illicit distilling-to 176,077 gallons (159,000) and Chinese type spirit to 3,750 gallons (2,743). The continu- ing upward trend in seizure results is directly attributable to the dedica- tion and skill of patrol officers and their commanders who, in the light of experience and knowledge gained of the modus operandi of illegal operators, have anticipated the intentions of the operators and directed operations against them accordingly.
212. In July 1968 the Investigation and Prosecution Units vacated their accommodation in Fire Brigade Building and moved into Connaught Building. This move released accommodation urgently required as a public facility for the receipt and issue of documents and provided for closer co-ordination of investigation and associated duties under the senior Preventive Service staff stationed at Connaught Building.
Hydrocarbon Oils
EXCISE
213. Frequent checks on and closer supervision of the blending of chemical and colour markers in diesel oil at oil depots have eliminated the incidence of 'under-marking' which occurred in the past. The oil companies have been very co-operative in helping to close the gap that existed and it is to their credit that the system is now working smoothly.
214. The illegal practice of removing both chemical and colour markers from 'industrial' diesel oil continues to spread and there are
* Previous year's figures shown in brackets.
49
now thirty-four known sites at which the oil is 'detreated' or sold. To complicate the issue further, chemicals used to remove the markers are so effective that in many instances it is not possible to detect any presence of a marker after 'detreating'. Concentration on the sites mentioned earlier has led to numerous seizures with legal action being taken against a total of 525 persons. Nine thousand six hundred and twenty-four vehicles were subjected to various checks and oil seizures exceeded 60,000 gallons.
215. Additional staff consisting of 2 Revenue Sub-Inspectors and 6 Assistant Revenue Officers were approved, on a supernumerary basis, to deal with the oil problem but they are not likely to be in operation before September of 1969. Meanwhile intermittent action continues against the illegal operation, as staff are available from other patrols.
Adulterated Liquor
216. Thirty-one separate seizures of adulterated liquor amounting to 415 bottles or 69.166 gallons together with 37 arrests, were made during the course of the year. This lucrative trade continues to be of some concern, not only because of a loss of revenue, but because of the possible health hazard. One case came to light when officers observed a person conveying empty bottles into a dwelling place. Subsequent enquiries led to the discovery of 134 bottles of adulterated liquor.
Illicit Distilling
217. Action taken against illicit distillers has caused a retreat of operations into the more remote areas of the New Territories. Although this is troublesome, the extended lines of communication necessitated by this move give the Preventive Service patrols additional opportunities for the detection of illegal operations.
218. In addition to siting the stills in more remote areas, the dis- tillers have taken advantage of the lower costs of plastic piping and frequently pipe the water they require over distances of several hundred yards from the nearest visible source of water supply.
219. The ever changing tactics of the illicit distillers and the more sophisticated methods of concealment, for example, burying drums of mash in the ground under flower beds, have caused a greater concen- tration, by the Preventive Service, on retail outlets, from which it is occasionally possible to trace back to the source of supply.
50220. Revenue reward rates were considerably increased during the year and it is expected that informers will be encouraged to take advantage of these, and thus allow containment of the illegal distilling operations by the existing staff employed on land patrol duties. Patrol vehicles ran a total of 258,633 miles.
PREVENTIVE OPERATIONS
Searches
221. Officers of the Preventive Service searched 911 ocean-going vessels and boarded 1,620 vessels for cargo examination duties in con- nection with narcotics, dutiable commodities, unmanifested cargo and illegal immigrants. Marine patrols searched 11,270 fishing and trading junks whilst patrol launches steamed a total of 14,114 hours.
222. The Macau ferries were checked regularly and 1,017,418 incom- ing passengers (923,950) were processed, an increase of 9.8% in pas- senger traffic.
223. 284,972 persons (261,302) passed through the Lowu baggage examination hall during the period, a slight increase of 22,996 as com- pared with the previous year. Imports of cargo through this channel were 518,081.300 tons (158,630.481) and through the Sheung Shui Sub- Station 54,774.960 tons (28,285.766), a sharp increase over the previous year.
224. The workload of Preventive Service officers stationed at Kai Tak Airport continued to rise and a total of 786,908 passengers includ- ing military personnel (627,636) were processed through Preventive Service facilities. Aircraft arrivals totalled 17,092 (15,592). Additional staff were approved, but the effects will not be apparent until around September 1969, when the additional staff complete their basic training. The total increase was 28 but these were originally required to cope with the 1967 increased flow of air traffic. It is not expected that there will be any immediate change in passenger flow which is currently facilitated by selective searching.
Narcotics
225. Preventive action in the harbour area included the searching and guarding of over 1,000 ocean-going vessels and the examination of incoming cargo on 1,620 vessels. No large seizures were made although one consignment of barbitone (550 lbs.) was detained for enquiries and
51
one French male was arrested at Kai Tak for importing 15 blocks of morphine. He was sentenced to three years imprisonment.
226. Special searches of U.S. military personnel arriving at Kai Tak Airport for rest and recreation visits to Hong Kong led to the seizure of 1,240.12 grammes of marijuana. Thirteen persons were arrested and prison sentences imposed ranged from 10 weeks to 2 years. Fines total- ling $11,200 were levied by the Courts. A notable feature of the seizures was the form of concealment employed by the carriers of marijuana. Included were film packs, transistor radios, shoes, trouser turn-ups, hats, coats, cigarette packets and cartons and an ammunition bandolier. Contrary to the belief expressed in some quarters, the majority of the marijuana discovered was intended for local sale and not for personal use by the carriers.
Bullion
227. Approximately 660 pounds of gold were seized during search operations at Kai Tak Airport and in the harbour area. The largest of the seizures, 660 gold bars weighing 123 kilos, was made on board a vessel just prior to its departure for Indonesia. There was no arrest.
228. In another instance, two European males were arrested on arrival from Manila on board a vessel, after 84 one-kilo bars of gold were discovered concealed in a cabin. The arrested persons were sub- sequently fined a total of $80,000.
Unmanifested Cargo
229. Several seizures were effected and the largest of these consisted of various amounts, ranging from 360 to 2,214 pounds, of silver coins. Fruit, oil tanks and false batteries were used to disguise the silver. Most claimants contended that the concealment was not for the purpose of evading local Hong Kong laws.
Marine
230. The four smaller Preventive Service patrol launches continued under the control of the Police until June 1968, when two Launches C. & I. 6 and 7 were returned to the Service for anti-smuggling patrol duties. In January 1969, Launch C. & I. 8 was also returned, leaving one launch, C. & I. 5, still on loan to the Police. Training of marine personnel in navigational and engineering duties continued throughout the year. One hundred and twenty-eight officers attended various marine courses including water jet boat handling. Fourteen officers attended the Hague Plan Radio/Telephone Communications Course.
52
TRAINING AND ADMINISTRATION
231. A post of Assistant Chief Preventive Officer was approved, in July 1968, to provide a commandant for the training establishment. Pending the construction of a residential training school, the person appointed to the post was placed in charge of the Training and Adminis- tration Unit with offices in Connaught Building.
Investigation
232. Enquiries were made in 51 cases involving disciplinary offences, infringements of the Merchandise Marks Ordinance, Southern Rhodesian import and export controls, evasion of revenue payments and requests for information from overseas Customs and Police authorities.
233. Verification checks were made of the activities of twenty-one importers of strategic commodities and 1,979 suspected offenders against the Importation and Exportation (Registration of Imports and Exports) Regulations. 20 warrants were executed under the Merchandise Marks Ordinance, and the discoveries in 17 instances led to official prosecution.
Prosecutions
234. Demands on the time of the prosecution staff, caused by the ever-increasing number of cases handled, were augmented by an un- usual number of defended cases during the year.
235. There was a sharp increase in the number of summonses issued for failing to lodge declarations under the Importation and Exportation (Registration of Imports and Exports) Regulations: 1,592, as compared with 579 summonses during the preceding year. The number of court actions totalled 5,071, an increase of 916 over the previous year.
236. The following table illustrates the trend over the last three years:
Actions
Arrests
...
Summonses
Fines
...
...
...
...
1968-69
5,071
1967-68
1966-67
4,155
4,139
611
1,014
1,259
2,747
1,597
1,141
$302,194
$437,788
$154,816
237. Details of major confiscations ordered by the Courts are given
in Table 7, and of dutiable commodities and dangerous drugs in Table 8.
53
Training
238. The Preventive Service Training Centre continued to function at the Kwun Tong District Government Offices; trainees being housed in rented accommodation in the same district.
239. During the period, 139 persons were offered and accepted appointments in the Service. Included were 40 Revenue Sub-Inspectors, 12 Revenue Officers, 79 Assistant Revenue Officers and eight Woman Assistant Revenue Officers. The 12 Revenue Officers were qualified persons engaged specifically for marine duties.
240. Induction Training Courses were held at regular intervals for all recruits. The training programme covers all laws administered by the Preventive Service, Government Regulations and Service orders, Excise duties, field practice and operational techniques, disciplinary training, Judo, first-aid and life-saving. Considerable use is made of visual aids and guest speakers from within the Service and allied Government departments deliver lectures during each induction course. Small groups of trainees are attached to sections and out-stations, as the need arises, for practical training.
241. Three refresher courses were held for 51 of the older non- commissioned officers, the object being to bring them up-to-date on new and revised legislation, drill movements, development of leadership qualities, personnel management and generally to broaden their outlook.
242. The first of two qualifying examinations for promotion to the grade of Revenue Inspector was held in April 1968. There were 21 successful candidates and 82 officers attended the second examination held in March 1969. The results were still being scrutinized at the end of the period under review.
243. An annual revolver firing course was held in July for all ranks of the Service.
244. Four passing-out parades were held during the year for a total of 14 Revenue Sub-Inspectors and 73 other ranks. One of the parades took place at the Headquarters of the Royal Hong Kong Defence Force parade ground in February, where the outgoing Assistant Commissioner, Mr. I. F. C. MACPHERSON, took the salute. The Band of the Royal Hong Kong Police was in attendance.
245. One Senior Revenue Inspector and three Revenue Inspectors attended management courses at the University of Strathclyde in the
54
United Kingdom. At the conclusion of the course, the three Revenue Inspectors were attached to the Customs authorities in the ports of Rotterdam, Hamburg and at the Airport in Frankfurt, to study con- tainerization and controls.
246. One Revenue Inspector was attached to the Australian Customs Authority, for a period of six months, to study Australian customs investigation techniques and administration. The attachment also served to forge a liaison link between the Preventive Service and the Australian Customs Authority.
247. One Revenue Inspector attended a six month practical train- ing course with the United Kingdom Customs.
248. A Senior Revenue Inspector paid liaison visits to three major cities in South East Asia Bangkok, Kuala Lumpur and Singapore. This officer renewed established links with the Customs and Police agencies in these cities and discussed problems of mutual interest.
249. An Assistant Chief Preventive Officer attended an anti-narcotics seminar in Tokyo. This seminar, which is held annually for senior Customs and Police officers from the Asian region, provides an in- valuable opportunity to exchange information and views on anti- smuggling techniques, trends in narcotics trafficking and to establish useful contacts in the region.
250. Sixteen junior officers attended English classes from Stage IV to Stage VIII.
251. Two Revenue Sub-Inspectors and one Senior Revenue Officer completed motorscooter training courses and obtained driving licences.
252. Four Senior Revenue Inspectors attended an Administrative Development Course and one Chief Revenue Inspector and three Revenue Inspectors attended a Techniques of Supervision and Effective Management Communications Course.
253. Six Revenue Inspectors attended a special Management Course which was held for Immigration and Preventive Service inspectors.
254. Four Revenue Inspectors attended a First Aid Course con- ducted by the Labour Department.
255. The Preventive Service Training School received visits from 420 students from 18 different schools in the Colony. The students were shown through the Preventive Service Museum and talks were given on the functions and structure of the Service.
55
Staff and Discipline
256. Mr. A. L. TOKLEY, Chief Preventive Officer, was appointed to act as Assistant Director of Commerce and Industry and Assistant Commissioner of the Preventive Service on the departure of Mr. I. F. C. MACPHERSON on 16th February 1969. Mr. F. G. CARROLL, Assistant Chief Preventive Officer, was appointed to act as Chief Preventive Officer with effect from the same date.
257. Fifty-two officers were promoted during the period. These
were:
From
C.R.I.
To
Number
A.C.P.O.
2
S.R.I.
C.R.I.
3
R.S.I.
R.I.
15
R.O.
S.R.O.
7
A.R.O.
R.O.
23
W.S.R.O.
1
W.R.O.
1
W.R.O.
W.A.R.O.
258. Commendations were awarded to the following ranks :—one Revenue Inspector, two Revenue Sub-Inspectors and three Assistant Revenue Officers, for outstanding alertness and initiative displayed in the performance of their duties, leading to seizures of dangerous drugs, dutiable commodities and gold.
259. Five Revenue Sub-Inspectors, two Assistant Revenue Officers and one Woman Assistant Revenue Officer transferred to other Govern- ment Departments.
260. One Revenue Inspector, seven Revenue Sub-Inspectors, one Revenue Officer, 12 Assistant Revenue Officers and four Woman Assist- ant Revenue Officers resigned from the Service.
261. Six breaches of discipline were reported during the year. Punishments were meted out as follows:
1967-68
Reprimands Fines Dismissals
...
...
...
Extra duty
1968-69
3
...
4
4
1
1
1
...
...
FOOD SUPPLIES
262. The work of this unit is to compile records and statistical returns in respect of daily imports of essential food items, such as rice,
56
swine, cattle, vegetables, marine and pond fish, poultry, eggs and frozen meats. These returns are analysed and submitted to the Food Supplies Co-ordinating Committee to enable them to assess and deal with deficiency that may affect the public.
any
263. Additionally the unit keeps a watch on local prices of essential foodstuffs and maintains records of stocks kept in godowns and cold storage. The staff work closely with the following departments: Agricul- ture and Fisheries, Census and Statistics, Urban Services, Marine, Immigration and the Kowloon-Canton Railway Authority.
DUTIABLE COMMODITIES DIVISION
Revenue from Excise Duties
264. The total net revenue from duties and licence fees during the financial year 1968-69 was $340,186,000, an increase of 4.7% over the previous financial year's $324,887,000.
265. For comparison, net revenue figures for the year under review and the past two years are summarized below:
...
Tobacco Hydrocarbon Oils
Liquor
Table Waters
Methyl Alcohol
...
...
in $'000
1968-69
1967-68
1966-67
...
118,785
121,503
118,236
117,337
108,121
103,713
91,357
82,971
85,261
.
8,190
8,037
7,296
81
49
55
...
335,750
320,681
314,561
266. The figures show a general increase in revenue collection from all categories with the exception of tobacco. The total net revenue was $2.5 million (or 0.7%) over the original estimate of $333.3 million. Net receipts from hydrocarbon oils and liquor showed a marked increase of $9.2 million and $8.4 million respectively.
267. A full breakdown of gross collections, together with refunds and drawback payments, is shown in Table 5.
(a) Tobacco
268. Net revenue from tobacco at $118.8 million fell short of the estimate, by $3.2 million or 2.6%, during a year that saw a considerable reduction in the tobacco export trade. Gross revenue from tobacco leaf
57
was down by almost $12 million whereas overall drawback payments were only $3.5 million less than those made during 1967-68. Revenue from imported cigarettes and cigars increased by $5.7 million, to the detriment of local product sales, whilst the income from prepared tobacco decreased by approximately $153,000. During the months of December to February each year large speculative withdrawals of tobacco leaf from bond, in anticipation of duty increases, have long been a prominent feature of revenue statistics but for the corresponding period of 1968-69 the amount of withdrawals was less remarkable and at the end of the financial year, duty paid stocks of tobacco stood at 339,700 pounds as compared with 515,000 pounds for 1967-68. Some improvement in the tobacco export trade appeared in the second half of the year and the forecast for this trade in 1969-70 is promising.
(b) Hydrocarbon Oils
269. Revenue derived from this commodity exceeded the estimate by $3.3 million with net revenue increasing by $9.2 million over that for 1967-68.
270. Continued development of local industries, coupled with lively growth and diversification, was reflected in the revenue collection of $35.5 million from 354,428,000 gallons of furnace oil. The increase in apparent consumption amounted to over 39 million gallons as compared with 1967-68 and the annual income from this commodity is now only $7 million below that for light oils (petrol etc.). Increase in (a) the number of vehicles powered by diesel engines, (b) consumption by industry, restaurants and marine craft and (c) consumption by both public and private transport plus the effect of preventive measures brought the income from diesel oil up to $33.3 million, with consump- tion at 75.8 million gallons or 15.8% over that for 1967-68. It is interest- ing to note that the total revenue collected on hydrocarbon oils for 1968-69 was approximately 80% over that for 1963-64 whilst revenue from diesel oil for road vehicles has increased by 200%. Liquefied petroleum gas, although not yet a particularly significant factor in the revenue collections, is being used in ever greater quantities and con- sumption rose to 37,117,000 pounds, with a corresponding increase of 83.4% in revenue from this commodity as compared with the previous year.
(c) Liquor
271. Total net revenue from liquor was $91.4 million, an increase of $8.4 million or 10.1% over that for 1967-68 and $3.3 million above
58
the original estimate. Major increases came from imported brandy and whisky but revenue from all forms of liquor increased over that for 1967-68 and, except for beer, exceeded that for the record year of 1966-67. Duty free exports by sea and air passengers again increased and refunds of duty totalled $4.6 million. Production of locally distilled Chinese type liquor increased by 145,600 gallons, the highest figure for some years but the gap between local duty paid production and imported liquor of the same type once again narrowed to a new low difference of only 259,000 gallons.
(d) Table Waters
272. Net collection from this source was $153,000 over that of last year's $8,037,000 but because of the unusually variable weather condi- tions, the expected increase in consumption did not occur and the total revenue from this commodity was $1 million below the estimate.
Revenue from Licences
273. The revenue obtained from various types of licences are shown in Table 6. Revenue from this category was $85,000 above the estimate of $4.4 million and registered an increase of $230,000 or 5.5% over last year.
274. Net revenue from licences issued in respect of various com- modities is shown hereunder together with comparative figures for the previous two years:
in $'000
Liquor Tobacco
...
...
...
...
1968-69
3,322
1967-68
1966-67
3,127
3,012
884
851
862
...
...
Hydrocarbon Oils
Table Waters
...
Ship and Harbour Vessel Methyl Alcohol
195
194
193
::
29
29
25
...
4
4
...
4.
2
1
1
4,436
4,206
4,097
59
CHAPTER 6
GENERAL DUTIES BRANCH
Establishment of the Branch
275. The Controls Division of the Department, formerly responsible for the Preventive Service, dutiable commodities, trade controls and food supplies were disbanded in February 1969 and reconstituted as the Preventive Service and Dutiable Commodities Division, residual functions being vested in a General Duties Branch. This Branch is at present headed by an Administrative Officer. In addition to taking charge of all trade licensing controls, reserved commodities and food supplies, the Branch is responsible for departmental legislation, reports, and public relations. It is the intention to develop the General Duties Branch to encompass other departmental functions and subjects which affect all divisions and branches of the department but which do not fall particularly readily into any existing division or branch.
TRADE LICENSING AND RESERVED COMMODITIES
Trade Licensing
276. The Importation and Exportation (Southern Rhodesia) Regula- tions, Cap. 50 continued in force throughout the year. These Regula- tions, which subject all imports from and exports to Southern Rhodesia tc. licensing control, were introduced in May 1966 in conformity with the policy of the United Kingdom Government in respect of sanctions against Southern Rhodesia.
277. During the year, Hong Kong continued to be a member of the International Coffee Agreement and to subject all imports of coffee from non-member countries to import quota control. Hong Kong's quota for the 'coffee year' 1st October 1968 to 30th September 1969 was set at 1.6 million lbs.
278. Hong Kong also acceded to the International Wheat Agree- ment, 1968 during the year and undertook to import 90% of its wheat and wheat flour requirements from countries party to the Agreement. As Hong Kong's wheat supplies have traditionally been imported
60
largely from member countries, no licensing or quota control has been necessary. Continuous surveillance is however maintained through regular returns from importers to ensure that Hong Kong's undertaking is fulfilled.
279. The number of import licences issued for all purposes, includ- ing the control of strategic goods and reserved commodities, totalled 38,413 (32,853)*. 135 (235) delivery verification certificates were issued to confirm the arrival in Hong Kong of strategic goods.
280. The majority of export licences issued by the Trade Licensing Section are for the purpose of exchange control. Total licences issued (excluding textile licences processed in the Textiles Branch) numbered 501,469 (440,159). 1,065 (1,129) delivery verifications or landing certifi- cates issued by the proper authority in the country of import were produced by exporters as required on export licences covering strategic items.
Reserved Commodities
281. Certain essential food and fuel supplies are subject to licensing control. The Department keeps a close watch on commercial stocks of these commodities to ensure that they are adequate to cover possible shortages.
(a) Rice
282. The Rice Control Scheme continued to be administered under the Importation and Exportation (Reserved Commodities) Regulations, Cap. 50. The basic quarterly import quota remained at 88,000 metric tons with 44,000 metric tons as the stipulated minimum reserve stock.
283. While the year 1967-68 saw a gradual deterioration in the world rice situation, and an increasing shortage of supplies in South-East Asia, the trend was completely reversed in 1968-69. As a result of good crops in most producing countries, export availabilities were considerably increased while demand from certain rice importing countries registered a decline. A new situation arose in which supply marginally exceeded demand, and this exerted some downward pressure on price which began to drop by late March 1968. A particularly sharp drop occurred at the beginning of October when the Thai Government, in an attempt to increase rice exports, announced a reduction of the rice export premium
* Previous year's figures shown in brackets.
61
by about $7.6 per picul for whole rice and about $2.80 per picul for broken rice as from 1st November. Between April 1968 and March 1969, c.i.f. prices for Thai Rice 100% whole 3rd grade and 100% broken Al super decreased by $9.50 and $13.24 per picul or 11.4% and 22% respectively. Import prices for China rice also declined during the year, though not to as great an extent as for Thai rice.
284. In sympathy with the decline in import prices, wholesale rice prices in Hong Kong dropped significantly during the year. Retail prices, however, fell only slightly, the lower wholesale prices being reflected in a considerable improvement in the quality of rice sold on the retail market.
285. The decline in import and wholesale prices created consider- able difficulties for importers whose stocks, purchased at high prices and deliberately built up in the difficult circumstances of 1967, could not be turned over rapidly and remained at a high level of around 100,000 tons (i.e. about 3 months' consumption) throughout the greater part of 1968. The improved circumstances of world supply and demand rendered a stock of this magnitude both excessive and economically unjustified. The Department therefore took steps to run down these stocks by reducing imports. These measures, which culminated in an announcement of a large reduction in the import quota for the first quarter of 1969, were on the whole successful, and by the end of 1968, stocks had been reduced to a more reasonable level of 79,000 tons. Unfortunately, this process of stock reduction entailed some increase in wholesale prices between December 1968 and January 1969, partly because of the psychological effect the quota reduction had on the market and partly due to a temporary stoppage of imports from China caused by a delay in negotiations between China rice importers and their suppliers over the terms of their annual contracts. This increase was, however, soon checked, and towards the middle of March whole- sale prices had declined somewhat, particularly in the case of China rice.
286. The sharp reversal of trend in the world rice situation during 1967-68 and 1968-69 threw the rice trade slightly off balance, and a rapid restoration of more normal conditions to the trade was impera- tive in the longer term interests of the consumer. This was achieved through the Rice Control Scheme which once again proved its worth. The Department will continue to pay close attention to developments in the rice trade to ensure that supply and demand are reasonably balanced and that prices do not fluctuate unduly.
62
287. Total rice imports during the year were 302,320 metric tons (352,284) as follows:
Thailand
China ...
U.S.A.
Source
Cambodia
...
...
Mexico Australia
Argentine Philippines Uruguay
...
N. Vietnam
...
Taiwan
Timor
...
Egypt...
Pakistan
Italy
N. Korea
Total
...
1968-69 M/Tons %
1967-68
M/Tons
%
144,333
47.8
155,390
44.1
...
84,331
27.9
83,677
23.8
...
29,248
9.7
60,506
17.2
25,993
8.6
37,025
10.5
...
11,450
3.8
3,140
0.9
5,488
1.8
5,651
1.6
684
0.2
404
0.1
...
345
0.1
286
0.1
...
1,987
0.6
100
1,023
0.3
...
40
90
...
...
22
21
265
0.1
838
0.2
1,161
0.3
...
250
0.1
...
...
877
0.2
:
...
302,320 100.0
352,284
100.0
Offtakes from stocks were as follows:
1968-69
1967-68
Type
M/Tons
%
M/Tons
%
Whole Rice-
Thai Origin
89,081
28.3
101,249 28.9
Chinese Origin
88,955
28.2
88,430
25.3
Other Origin
90,493
28.7
77,906 22.3
268,529
85.2
267,585
76.5
Broken Rice-
Thai Origin
34,417
10.9
66,832
19.1
Glutinous Rice—
Thai Origin
Chinese Origin Other Origin
Sub-Total
:::
8,668
2.7
9,337
268
0.1
621
0.2
253
2.6
43
8,936
2.8
10,001
2.8
311,882 98.9
344,418
98.4
63
Type
Low Grade and Other Rice
for Industrial Use/Poultry
Feeds-
Thai Origin
...
Cambodia Origin ...
Other Origin
Total Offtakes
1968-69
M/Tons
%
1967-68
M/Tons %
1,293
0.4
1,717
239
0.1
408
0.1
...
1,870
0.6
3,435
528
0.5
1.0
3,402
1.1
5,560
1.6
315,284 100.0
349,978 100.0
288. In March 1969 this Department was represented at the Thirteenth Session of the Study Group on Rice of the United Nations Food and Agriculture Organization (F.A.O.) held in Manila. Estimates. of world production and demand for rice given at the meeting indicated a substantial surplus of rice entering world trade in 1969 and this resulted in proposals from some producing countries for the introduc- tion of regulatory measures on the lines of the International Wheat Agreement. These proposals were referred to the Director-General of the F.A.O. for further study.
(b) Frozen Meat
.
289. During the year, importers of frozen meat continued to be registered as stockholders with an undertaking to maintain a certain quantity as reserve stock.
290. Imports of frozen meat amounted to 36,378 (34,174) long tons in 1968-69. Of this amount, 87% (81%) came from China.
291. Consumption of frozen meat and fresh meat during the past three years has been as follows:
1968-69
1967-68
1966-67
L/Tons
L/Tons
L/Tons
Fresh Meat
Frozen Meat
112,020
93,881
106,960
...
37,207
32,794
32,245
149,227
126,675
139,205
(c) Frozen Poultry
292. Imports of frozen poultry under licence amounted to 38.2 (26.8) million lbs. The major source of supply was the U.S.A., followed by
64
China and Denmark. These countries supplied 41% (54%), 29% (26%) and 12% (12%) of total imports respectively.
(d) Coal
293. Imports of coal amounted to 68,851 (93,793) long tons.
(e) Firewood
294. Imports of firewood amounted to 1,719 (5,629) long tons.
65
CHAPTER 7
ADMINISTRATION BRANCH
GENERAL
295. The Administration Branch is headed by a Senior Executive Officer who is the Departmental Secretary. He is responsible for staff and establishment as well as general administration matters. There are two Executive Officers in the Branch.
OVERSEAS OFFICES
296. The Government has four overseas offices which are serviced and administered by the department. These are located in London, Brussels, Geneva and Washington. The London Office is primarily responsible for liaison on commercial matters with the British Govern- ment; the Brussels Office is chiefly concerned with following develop- ments in the European Economic Community; the Geneva Office's main function is to report on proceedings in the General Agreement on Tariffs and Trade and the United Nations Conference on Trade and Develop- ment; and the Washington Office looks after Hong Kong's commercial interests in the U.S.A., which is Hong Kong's largest market.
ORGANIZATION AND PERSONNEL
Departmental Organization
297. A change of some significance occurred in February 1969 when the Controls Division of the Department was replaced by the Preven- tive Service and Dutiable Commodities Division and the General Duties Branch. The post of Assistant Director in charge of the new division was filled on an acting basis by the Chief Preventive Officer who also has responsibility for the administration of the Food Unit of the Essential Services Corps. An Administrative Officer heads the new General Duties Branch responsible for trade licensing controls, reserved commodities, food supplies, departmental legislation, reports and public relations.
66
298. An organization chart of the department as at 31st March 1969 is shown at Table 9 with the divisional staff establishment given in brackets.
Senior Staff Movements
299. There were six major changes in the senior management of the department during the year. In mid-April, Mr. E. I. LEE, Administra- tive Officer Staff Grade B2 was assigned as Deputy Director (Adminis- tration and Industry) in place of Mr. D. C. C. LUDDINGTON, Adminis- trative Officer Staff Grade B1 who proceeded on vacation leave.
300. Mr. D. G. JEAFFRESON, Senior Administrative Officer, who had served as Assistant Director in the Commercial Relations 'E' Division since July 1967, went on leave in November 1968. He was replaced by Mr. E. P. Ho, Administrative Officer Staff Grade C.
301. Mr. W. DORWARD, Senior Trade Officer, was promoted to Assistant Director in September 1968.
302. Mr. D. M. SELLERS, Administrative Officer Staff Grade B2 was appointed as Assistant Director (London) in June 1968.
303. Mr. I. F. C. MACPHERSON, Administrative Officer Staff Grade C who served as the Assistant Director (Controls) proceeded on leave in February 1969 and Mr. A. L. TOKLEY, Chief Preventive Officer was appointed to act as Assistant Director and Assistant Commissioner of the Preventive Service in his place. Mr. F. G. CARROLL was appointed to act as Chief Preventive Officer vice Mr. TOKLEY.
Establishment
304. At the beginning of the year the department's authorized establishment stood at 1,435 posts of which 855 were in the Preventive Service. This included 25 new civilian and 10 new Preventive Service posts approved in 1968-69 Estimates. Vacancies in the civilian and Preventive Service establishments were 56 and 161 respectively. During the year the civilian establishment increased by 16 posts and the Preventive Service by 40 posts. On 31st March 1969 there were 14 vacancies in the civilian establishment of 596 posts and 112 vacancies in the Preventive Service establishment of 895 posts.
Recruitment
305. The Administration Branch undertook eight separate recruit- ment exercises during the year, to fill vacancies in the grades of
67
Assistant Trade Officer, Industry Assistants Classes I and II, Revenue Sub-Inspector, Woman Revenue Sub-Inspector, Revenue Officer, Assist- ant Revenue Officer and Woman Assistant Revenue Officer. 169 newly appointed officers assumed duty during the period. Response to adver- tisements in both the English and Chinese language newspapers was good, particularly for the Preventive Service Grades and Industry Assistant Class II grade.
TRAINING
306. Mr. A. L. PURVES, Trade Officer, attended the General Management Course at Ashridge Management College and a seminar on Aid and Trade at the Institute of Development Studies, University of Sussex.
307. Mr. F. S. L. YEUNG, Trade Officer and Mr. T. H. CHAU, Assistant Trade Officer, attended a training course on the study of tariffs and non-tariff structures and techniques in trade negotiations in Bangkok in December 1968.
308. Mr. P. K. C. WONG, Senior Trade Officer, left the Colony in mid-January 1969 to take up a fellowship at Oxford University awarded to him under the British Technical Assistance Scheme. His chosen field of study was Economic Development and Industrialization.
309. Mr. R. M. K. YAU, Trade Officer, was awarded a G.A.T.T. fellowship to attend the five-month G.A.T.T. In-Service Training Course which commenced in February.
310. Mr. D. Y. P. Yıp, Industry Officer, proceeded to the United Kingdom in November 1968 to attend the Middle Management Course at Ashridge Management College and to be attached to this Depart- ment's London Office and H.M. Customs and Excise.
311. Mr. CHOW Kwok-woon, Revenue Inspector, undertook six months' training in customs administration in the Department of Customs and Excise in Melbourne, Sydney and Canberra under the Australian International Award Scheme.
312. Mr. CHU Yin-kwan, Revenue Inspector, attended the Special Course on Customs for Overseas Visitors in H.M. Customs and Excise, London.
313. Three Revenue Inspectors, Messrs. PANG Tak-shing, Ho Pui- yiu and MAN Shu-hung, were given three months' training overseas;
68
their programme consisted of attachments to customs authorities in Hamburg, Frankfurt and Rotterdam, and attendance of the Middle Management (Human Aspects) Course at the University of Strathclyde.
314. Mr. S. C. MILLS, Senior Revenue Inspector, attended the Middle Management (Human Aspects) Course at the University of Strathclyde whilst he was on vacation leave in Britain.
315. Provision was made in 1969-70 Estimates to enable a Senior Trade Officer, a Trade Officer, a Senior Industry Assistant and two Revenue Inspectors to undertake training overseas.
DEPARTMENTAL ACCOMMODATION
316. With the continued growth of the Department, both in its activities and staff, the need for improved facilities and additional office space in the Headquarters building was keenly felt. A working party was established in June to consider an overall renovation plan, and to work out details for the re-arrangement of accommodation in the Fire Brigade Building. A number of meetings were held and revised layout plans for all the offices were prepared by the end of the period under review.
317. In February 1969, the Certification Receiving Office moved to the ground floor of the Fire Brigade Building, thus giving easier access to members of the public applying for certificates and providing more working space on the 1st floor for officers of the Certification Branch.
318. Because of the Housing Authority's need for additional ac- commodation in its Head Office Building in which the Department's Industry Inspection Branch has hitherto been housed, an area of nearly 8,000 sq. ft. in Tung Ying Building in Nathan Road, Kowloon was leased to reaccommodate the Branch. Fitting-out work was proceed- ing on schedule at the end of March 1969.
319. An area of 735 sq. ft. on the 5th floor of Causeway Bay Magistracy Building was allocated to the Department to alleviate the congestion of the Island Excise Office. Three rooms totalling 1,135 sq. ft. were also leased in the Chartered Bank Building, Tsuen Wan, to house a new Excise Office. This office will serve the New Territories areas of Yuen Long, Ping Shan, Castle Peak, Tsuen Wan, Kwai Chung and Tsing Yi Island. Within these areas there are 2,441 licensed premises, five oil installations, two table water manufacturers, four distilleries and one brewery.
69
320. Projects under construction during the period under review included the Rumsey Street Multi-Storey Car Park, which will re-house the Headquarters and operational sections of the Preventive Service, and the Shek Wu Hui Sub-Station for the examination of cargoes coming from China. Other projects in the planning stage comprised the extension of the Fanling Excise Station, Preventive Service Other Ranks Quarters in Kowloon and the Residential Training School.
WELFARE
321. Staff Welfare is the responsibility of the Deputy Director, Administration and Industry, who is assisted by the Secretary.
Departmental Quarters
322. Sketch plans for Preventive Service Other Ranks Quarters in Kowloon were approved and arrangements were being made to upgrade the project to Category A in the Public Works Programme.
Sports
323. A series of football matches amongst departmental officers and with outside teams were played on Sundays during February and March. The necessary expenses were met by the Department's Sports and Social Club Fund.
Preventive Service Senior Staff Club
324. The Preventive Service Senior Staff Club was the venue of a number of successful social functions, and its dining facilities continued to be well-patronized by its members, particularly for lunch. Presenta- tions to officers going on retirement were also held in the club during the year.
Clerical Canteen
325. The Canteen, which is used primarily by junior officers of the Preventive Service and clerical staff working in Fire Brigade Building, continued to be well supported.
70
CHAPTER 8
FINANCE AND STORES
REVENUE
326. Net revenue collected by the department amounted to $353.1 million, an increase of 5.2% over the previous year (Table 10). This represents 17.0% of all revenue collected by Government. Details of revenue for dutiable commodities are given in Tables 5 and 6.
327. It was estimated originally that some $9.7 million would be collected from ad valorem charges on import and export declarations. In fact the yield was more than $11.9 million, emphasizing the con- tinued growth of the Colony's trade.
EXPENDITURE
328. Total departmental expenditure amounted to $17.7 million, an increase of 4.6% over the previous year. Supplementary provisions totalling $319,640 over the estimate of $18,285,700 were approved during the financial year.
329. The cost of operating the four overseas offices for the year was $991,700. This represents a saving of $68,800 on the approved estimate.
330. During the year, a total of 25 delegations participated in con- ferences, consultations, etc. on trade and related matters outside the Colony. The cost of these delegations was $367,700.
STORES
331. Initial planning was undertaken for the centralization of the following stores in the Rumsey Street offices, which are due for com- pletion in mid-1970:
Uniform Store (Fire Brigade Building)
Dangerous Goods Store (Western Revenue Station)
Confiscated Goods Store (U.S.D. Whitfield Road Depot).
The new accommodation will be larger than the existing stores and should alleviate the congestion experienced during the year.
71
332. Confiscated liquor, tobacco and cigarettes continue to be sold at an authorized rate equivalent to the retail price less 20%, but with- out any warranty as to condition. Free issues were confined to certain approved charitable organizations. Compared with last year, the quan- tities sold or issued free and their respective values were as follows:
Sold:
Liquor
Cigarettes
Cigars
...
Frozen meat...
Distributed free:
Liquor
Cigarettes
Cigars
Tobacco
1968-69
1967-68
Quantity
Value $
Value
Quantity
$
...
3,429 bots.
19,863
6,667 bots.
27,207
4,650 pcs.
222
340,520 pcs.
8,690
...
4,873 pcs.
1,932
3,732 pcs.
1,070
1,672 lbs.
7,463
...
Total
$22,017
Total
...
$44,430
1968-69
1967-68
Value
Value
Quantity
$
Quantity
$
2,982 bots.
10,329
4,140 bots.
17,650
...
...
648,000 pcs.
15,552
824,992 pcs.
19,800
...
...
4,381 pcs.
665
4,050 pcs.
405
484 lbs.
2,420
1,263 lbs.
6,315
:
Total
$28,966
Total
...
$44,170
333.
Proceeds of cash sales are apportioned between the appro- priate revenue sub-heads, viz. Duties and Revenue Reward Fund, while credits resulting from issues to other departments go entirely to the Fund, which is used for the payment of rewards for information lead- ing to the seizure of contraband. The Fund ceiling is fixed at $200,000; sums in excess of this amount being transferred to general revenue. Total credits during the year resulting from sales and issues to other departments were:
Revenue Head 1 Duties: Subhead 2-Liquor
Revenue Head 1 Duties: Subhead 4-Tobacco
Revenue Reward Fund
...
$13,200
1,184
...
11,967
$26,351
72
334. In view of the large amount of revenue collected from the taxation of dutiable commodities, the Audit Department conducts a running audit of the Department's accounts with particular regard to the calculation of duty payable on dutiable commodities.
WELFARE FUNDS
335. The Department operates two Welfare Funds, one for members of the Preventive Service and the other for the civilian staff, the latter being relatively small. The Preventive Service Welfare Fund is established by Ordinance to—
(a) procure for members who are serving or for former members who have been retired on pension, gratuity or other allowance, comforts, convenience or other advantages not chargeable to public revenue; and
(b) grant loans to members who are serving or to former members who have been retired on pension, gratuity or other allowance. The revenue of the fund consists of voluntary donations and a sum voted annually by the Legislative Council. Loans amounting to $13,064 were made during the year to help meet various costs, for example, medical treatment, maternity fees, education and funeral expenses for serving and retired officers and their dependants. In addition, expendi- ture of $10,403 was authorized for the general welfare of the Preventive Service.
8th September 1969.
T. D. SORBY, Director of Commerce and Industry.
73
MARINE DEPARTMENT LIBRARY
TABLE 1
EXPORTS E RESTRAINED COTTON TEXTILES TO BRITAIN
1964-69
1964 (b)
1965 (b)
1966
1967
1968
1969
Description
Unit
Group Limit
Exports
Group Limit
Exports
Group Limit
Exports
Group Limit
Exports
Group Limit
Group
Exports
Limit
Yarn
Lbs.
6,300,000
Loomstate Piecegoods... Sq.yds.
Finished Piecegoods Sq.yds.
Made-ups and Garments Sq.yds.
Miscellaneous Cotton
Manufactures
102,103,811(a)||
}
86,811,189
6,241,132 6,300,000
81,688,535
20,356,877
86,749,784 89,825,838
|105,682,162| (a)]
Sq.yds.
6,225,010 6,300,000
6,149,452 6,303,000
78,360,590
6,123,601 6,426,630
80,976,105
6,051,237 6,490,896
73,941,800
190,605,685(d)
113,582,250(e)
21,587,146 185,000,000 (d) 26,538,616 186,850,000 (d) 22,976,790 188,718,500 - (d) 27,529,239
59,832,933
83,409,290
82,830,714
89,752,964
2,300,000
1,586,005 2,388,101
1,968,389 2,411,982
2,158,282
2,436,102
Note: (a) In 1964 and 1965, group limits for piecegoods, made-ups and garments groups include a supplementary quota of 14,454,000 sq. yds. Sub-
limit for finished piecegoods was 30 million sq, yds.
(b) Export figures for 1964 and 1965 include shipments made during the carryover period in the subsequent year,
(c) Made-ups and garments quota could be shipped as piecegoods under the special shipment arrangements in late 1965.
(d) Group limits for finished piecegoods, and made-ups and garments:
Finished Piecegoods
1966
30,000,000 sq. yds.
1967
1968
1969
Made-ups and Garments
85,000,000 sq. yds.
30,300,000 sq. yds.
85,850,000 sq. yds.
30,603,000 sq, yds.
86,708,500 sq. yds.
30,909,030 sq. yds.
87,575,585 sq. yds.
74
TABLE 2
EXPORTS OF COTTON TEXTILES RESTRAINED UNDER G.A.T.T. COTTON TEXTILES ARRANGEMENTS
FROM OCTOBER, 1962 TO SEPTEMBER, 1969
Restrained Countries
Unit
1968-69
Restraint Limit
1967-68
5th Long Term Year 1966-67
4th Long Term Year 1965-66
3rd Long Term Year 1964-65
2nd Long Term Year 1963-64
1st Long Term Year 1962-63
Restraint Limit
Exports
Restraint Limit
Exports
Restraint Limit
Exports
Restraint Limit
Exports
Restraint Limit
Exports
Restraint Limit
Exports
U.S.A.
Sq, yd. 389,871,563
(All cotton textiles)
Canada
Doz.
textiles)
596,820
(5 garment categories)
Sq. yd. 11,090,000
(All fabrics
(5 garment categories) 11,090,000 (All fabrics
4,418,240 (All fabrics
including 5
specific
categories)
including 5 specific categories)
including 5
736,000 (5 garment categories) 11,090,000 (All fabrics including 5
601,714
736,000 (5 garment categories)
371,306,250
(All cotton textiles)
594,000
379,598,270 343,625,000(6) 323,943,161 322,500,000(1)| 349,010,637 274,712,288 273,255,307 251,112,600 243,386,600| 231,144,890 227,157,291 (All cotton (All cotton
(All cotton textiles)
textiles)
616,426 (5 garment categories)
634,022 712,000 599,243 614,000 484,595 600,000 517,954
(37 categories)
(36 categories)
(30 categories)
(7 garment categories)
(6 garment categories)
7,849,083 9,406,000
(11 fabric categories)
8,846,288 3,000,000 4,728,883 N.A,
(6 garment categories) 5,863,113 N.A.
5,994,087
(6 fabric categories)
specific
categories)
specific categories)
lb.
1,350,000
1
(Towels)
Federal
Republic of
Germany
Doz.
67,650,000(4) 66,650,000(4)| 65,812,466
77,000,000
72,040,000
400,000
399,884
380,000 339,167(3)|
350,000 309,139 N.A.
347,987
(sq. yds.)
(sq. yds.)
(sq. yds.)
(sq. yds.)
(sq. yds.)
(Woven
(7 groups)
(7 groups)
(7 groups)
(7 groups)
(7 groups)
nightwear)
Norway
Doz.
143,000
24,000
23,343
23,000
22,996 22,000
22,000
20,000
19,788
18,000
16,951
16,000
15,960
(4 categories
(Woven
of cotton
nightwear)
(Woven nightwear)
(Woven
(Woven
nightwear)
nightwear)
garments)
Doz.
N.A.
N.A,
N.A.
66,000 (Woven sport! & work shirts)
34,634
61,000
23,850
56,000
31,790
51,000
45,389
46,000
44,975
(Woven
sport &
work shirts)
Benelux
Pc.
N.A.
N.A.
N.A,
750,000(2) (Woven shirts)
547,071
1,251,517
(Woven (Woven shirts)
shirts)
1,053,245] (Woven shirts)
N.A.
1,539,648| N.A.
1,152,300
N.A.
1,015,320
Sq. yd.
3,153(7)
8,236,386
(metric tons) (All cotton textiles except
1,197,110(6) (6 made-ups (6 made-ups (5 categories) and garment and garment
5,549,749
1,058,870
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
(5 cate- gories)
categories) categories)
yarns)
Sweden
Pc.
5,370,000(8)
(5 groups)
(1) A further 35.6 million sq, yds, was added to the first bilateral year limit on a once-and-for-all basis to take account of trade
during 1965-66 in unsuspended, unrestrained categories which were caught by the retroactive nature of the agreement.
(2) From 1st January to 30th September 1967. All previous exports based on calendar year,
(3) Period for utilization of quota extended to 31st December 1965.
(4) From 1st January to 31st December.
(5) From 18th July to 30th September 1967.
(6) As a result of Hong Kong agreeing to the adoption of the dual criteria in defining cotton textiles, the aggregate limit was in- creased by 15 million square yards (an actual 5 million sq, yds, was negotiated for the balance 1st June 30th September 1967 of the second bilateral year), with a growth of 5% in the third bilateral year.
(7) From 1st July 1968 to 31st December 1969.
(8) From 1st June 1968 to 31st May 1969.
N.A, = not applicable,
75
76
Year
Certificates
Standard Certificates of
TABLE 3
CERTIFICATION OF ORIGIN STATISTICS
1968-69
Value of Goods Certified $Mn. (Percentage
Change)
1966-67
1967-68
Value of Goods
No. Issued (Percentage Change)
Certified $Mn.
(Percentage
No. Issued (Percentage Change)
Value of Goods Certified $Mn.
No. Issued
139,705
(+6.1)
Change)
1,546.9 (+18.9)
135,806 (-2.8)
(Percentage Change)
(Percentage Change)
1,593.69
151,903
(+3.02)
(+11.8)
Origin
Commonwealth
2,058.50
(+29.1)
Preference
Certificates:
(a) Britain
80,522
956.9
91,906
1,149.24
87,024
1,256.63
(+8.5)
287,731
(+7.2)
(+14.1)
297,169
(+20.1)
(-5.6)
315,751
(+9.3)
(b) Other Countries
27,052
(+4,3)
(-14.6)
156.7 (-12.4)
22,182
(+3.3)
151.05
22.632
(+6.3)
175.67
(-18)
(−3.61)
(+2.0)
(+16.30)
Comprehensive Certifi-
cates of Origin:
(a) Commercial
40,452
47,275
54,192
(+5.6)
(+16.9)
(+14.6)
(b) Mail Order
22,808
24,998
23,192
(-26.1)
(+9.6)
(-7.2)
(c) Tourist
82,780
842.3
74,162
1,043.83
73,212
(-8.2)
(+7.6)
(-10.4)
(+23.9)
(-1.3)
1,379.80 (+32.2)
(d) Gift Plan
7,353
100,689
6,716
92,991
6,273
94,913
(-28.0)
(-9.2)
(-8.7)
(-7.6)
(-6.6)
(+2.1)
(e) Sample
10,556
12,023
15,488
(+3.1)
(+13.9)
(+28.8)
Total
411,228
(-1.5)
3,502.8 (+10.6)
415,068
3,937.81
433,916
(+0.9)
(+12.4)
(+4.5)
4,870.60 (+23.7)
Domestic Exports
($Mn.)
5,921
6,897
8,908
Percentage
59.1
57.1
54.7
...
Certified
Value of stamp fees paid
(including miscel- laneous certificates, not recorded above)...
$4,525,480
$4,761,780
$5,128,003
77
TABLE 4
TRADE COMPLAINTS FROM OVERSEAS COMPANIES OR INDIVIDUALS
HANDLED BY THE DEPARTMENT
FROM 1.4.1968 to 31.3.1969
Country
North Central South America America America
Middle
Europe Africa
East
Category
Australia and New Zealand
Asia
Total
610
3
78
14
17
78
19
819
34
10
38
38
24
20
11
175
:
41
1
20
7
6
22
4
101
6
13
2
1
2
24
...
9
1
8
2
6
1
1
28
...
...
Non-delivery
Outstanding debts
Inferior quality
...
Breach of contract
Short shipment
Infringement of patents
and designs
Infringement of trade
marks
...
Miscellaneous
1
5
5
11
1
1
1
3
...
1
106
2
19
10
6
12
7
162
Total
808
2
15
182
73
59
134
50
...
1,323
Liquor:
Whisky Brandy
Gin ...
Wines
Beer
Other European Type
Chinese Type:-
(a) Locally Distilled
(b) Imported
Spirituous Liquor other than
Intoxicating Liquor
Methyl Alcohol
Tobacco:
Total
Cigarettes and Cigars
European Smoking Tobacco
(including Snuff)
Chinese Prepared Tobacco
Tobacco Leaf
Total
TABLE 5
DUTY FROM DUTIABLE COMMODITIES (GROSS)
1966-67
1967-1968
1968-1969
Unit
Quantity
% Change
Duty
% Change
Quantity
% Change
%
Duty
Quantity
Change
% Change
Duty
% Change
$
Gallons
140,329
+ 10.3
9,209,095
+ 10.7
**
314,234
+ 17.2
22,722,292
+ 17.7
"
48,306
147,279 308,111
+ 7.6
3,248,485
+ 7.0
"
170,276
J
9,328,449
+ 19.4 + 16.7
3,554,495
+ 20.2
18,109,228
+ 18.5
"
21,150
+ 23.2
48,989 156,597 8,783,792
1,484,558
+ 23.6
22,181
+|+|+
5.0 1.9
9,649,178
22,610,288
1.4
3,299,101
8.0
3,198,770
5.8
16,693,451
4.9
1,572,671
19
>
1,916,031 1,614,559
-
7.5
+ 14.3
13,305,759 15,177,513
—
140,744 3,552
3.5
+ 27,6
1,903,006 54,984
7.7 +18.1
2.2
1,802,974 1,600,939
│1
5.9
12,495,612
0.8
14,574,652
132,914
5.6
1,761,227
+ 36.1
3,011
15.2
13,697,630
+ 12.0
88,769,415
+ 11.9
13,006,787
5.0
48,826
85,903,776
Pounds
5,506,451
11.0
58,817,590
+ 8.3
**
66,238 415,085 11,475,733
2.6
7.0
562,125 1,037,713
+ 23.9
33.2
90,361,009
―
"
17,463,507
-
26.9
150,778,437
+1+11+
| 1
4.8
166,385
0.5
398,476
1.6
53,310
10.0
171,369
7.8 5.9
9,231,289
24,015
6.1 4.0
1,948,646 1,689,861
7.5
11.2
3.2
152,514 4,340
13,840,205
++ ++
++++++
13.0
29.3 8.8
10,903,094 28,841,407 3,618,097
+ 13.0 +27.6
+ 9.7
+ 9.4
3,415,703
+ 6.8
5.1
17,820,774
+
8.3
1,686,931
6.8 + 7.3
8.1
13,501,726
+ 8.1
5,6
15,439,941
+ 5.9
+ 14.7
2,058,355
+ 16.9
+ 44.1
+ 6.4
81,005
+ 65.9
97,367,033
+ 13.3
7.0 10.5
5,503,560
70,222 423,631 12,888,979
—
0.1
58,808,545
―
0.1
6,031,780
+ 9.6
64,532,097
+ 9.7
+++
6.0
597,575
2,1
+ 12.3
1,059,075 101,709,752
+++
6.3 2.1
59,954 396,175
14.6 6.5
513,732
14.0
990,438
12.6 † 11,351,001
11.9
89,945,258
6.5 11,6
3.8
18,886,392
+ 8.1
162,174,947
+
7.6
17,838,910
5.5
155,981,525
3.8
Hydrocarbon Oils:
Liquefied Petroleum Gas...
Pounds
Light Oils
Imp. Gal.
27,055,054
2.8
Diesel Oils
*
66,819,686
+ 10.5
Furnace Oils
"
304,354,020
+ 33,8
Other Type...
51,925,776
450,154,536
+ 7.3
38,025,038 30,140,047 30,435,402 5,118,764
+ 19.2 + 31.2 + 33.8 7.2
*20,233,018 30,816,555 65,504,671 315,116,477
404,660
37,116,754
+1+
+ 13.9
40,991,008 +
7.8
32,049,093
+ 83.4 + 4.0
742,335
+ 83.4
42,500,747
+ 3,7
2.0
30,294,172
0.5
75,867,050
+ 15.8
33,293,133
+ 9.9
3.5
31,511,648
3.5
354,428,113
+ 12.5
35,442,811
+ 12.5
49,938,265
3.8
4,924,005
3.8
54,529,728
+ 9.2
5,362,714
+ 8.9
+ 24.1
103,719,251
+ 25.9
20,233,018 lb. 461,375,968 gal.
108,125,493 + 4.2
+ 2.5
37,116,754 lb. 516,873,984 gal.
+ 83,4 + 12.0
117,341,740
+ 8.5
Table Waters...
Gallons
15,201,590
+ 16.8
7,296,765
+ 16.8
16,744,160
+ 10.1
8,046,798
+ 10,2
17,110,322
+ 2.2
8,212,955
+ 2.1
Refund and Drawback
Locally Manufactured Liquor
Intoxicating Liquor
Spirituous Liquor other than
Intoxicating Liquor
Table Waters
Tobacco
T
Hydrocarbon Oils
Total
124,1401 3,293,597)
+ 53.2
35,639 117 32,542,824 6,291
40.7 +91.8
48.5 8.5
* Liquefied petroleum gas became dutiable with effect from 28.6.67.
78
36,002,608
45.0
40,671,741 4,657
43,569,999
—
26.0
+ 21.0
123,780 2,692,306
67,602 9,913
+ 89.7 +-8372.6
+ 25.0
0.3
18.3
97,843 5,789,786
21.0
+115.0
41,551 22,856
38.5
+130,6
37,196,574
4,447
8.5 4.5
43,153,057
1.0
† Duty rate on tobacco of Commonwealth Origin revised with effect from 5.30 p.m. on 26.6.68.
79
TABLE 6
REVENUE FROM DUTIABLE COMMODITIES LICENCES, 1968-69
No. of Licences Issued
Revenue
Importer's:
$
Liquor
...
...
...
353
...
176,500.00
Tobacco
Hydrocarbon Oils
Table Waters Methyl Alcohol
83
...
41,500.00
186
96,000.00
...
50
15,000.00
57
570.00
...
...
Exporter's:
Liquor
191
...
***
4,360.00
Tobacco
Hydrocarbon Oils
Table Waters
Methyl Alcohol
Dealer's:
European-type Liquor
Chinese-type Liquor
Spirituous Liquor Tobacco
Hydrocarbon Oils
Methyl Alcohol Medicated Liquor
Retailer's:
Chinese-type Liquor Spirituous Liquor
69
...
2,650.00
40
...
...
+
400.00
15
1,600.00
..
8
80.00
...
588
...
882,000.00
2,581
1,580,020.00
459
...
...
45,900.00
183
91,500.00
***
...
...
438
43,800.00
...
...
49
490.00
1
50.00
...
462
...
...
68,700,00
...
...
1,947
176,660.00
Beer
...
...
...
...
Tobacco
...
5,289
319,725.00
...
...
...
11,841
724,250.50
...
Hydrocarbon Oils Methyl Alcohol
Medicated Liquor
Manufacturer's:
Distillers
...
...
...
1,247
31,175.00
38
10
588
380.00
500.00
...
...
14
•
Brewer
Liquor
Still
Tobacco
Table Waters
Warehouses:
Liquor
Tobacco
2
...
23
6
18,800.00
...
Liquor Manufacturer
1
...
...
...
14
nt
5
5,000.00
11,300.00
12
...
...
Hydrocarbon Oils
Table Waters
Methyl Alcohol
Ship and Harbour Vessel Licences
Licence fees for persons importing for own
use and miscellaneous
19
...
...
15
...
...
...
2-257
24,000.00
8
10,000.00
19,000.00
850.00
70.00
359
•
3,590.00
...
39,156.85
Net Total ...
26,647
$4,435,577.35
80
TABLE 7
MAJOR CONFISCATIONS UNDER OTHER LEGISLATION
Legislation
Quantity
Commodity
Unit
1967-68
1968-69
Importation and
Exportation Ordin- ance, Chapter 50, and Regulations made thereunder
Gold bars
lbs.
460.20 1,001.12
***
Indonesian silver coins
lbs.
14
2,214.18
Indonesian copper coins
lbs.
944.00
Philippine silver coins
lbs.
1,807.04
Acetic anhydride
Gramophone records
Wrist watches
Transceivers
Transistor radios
Walkie talkies
Lighter flints ...
...
gals.
208.00
68.00
nos.
9,197
484
nos.
1,175
sets.
33
10
...
...
...
...
sets.
164
sets.
3
3
tins
27
58
Cigarette lighters
nos.
12,000
Fountain pens
nos.
13,595
Chloramphenical powder
lbs.
220.46
193.62
Vitamin B12 ...
vials
459
Chinese herb...
...
cases
20
Penicillin Ordinance,
Chapter 137
Penicillin
tablets
1,295
Streptomycin sulphate
bottles
324
Dihydrostreptomycin
sulphate
bottles
159
...
Pharmacy & Poisons
Ordinance, Chapter
138
Merchandise Marks
Ordinance, Chapter 41
Tetracycline
Tifoinycine
...
Methyl parathion
Isobulylallylbarbituric acid... tablets
Forged trade mark labels nos.
...
Forged trade mark wrappers nos.
Butter...
...
6,759
117
lbs.
8.25
...
bottles
306
Floor polish
lbs.
145
Blackcurrant syrup
bottles
27
Chinese type spirit
tablets
1,900
318
...
tablets 29,000
bottles
4
222 22
24
24
81
TABLE 8
CONFISCATIONS UNDER THE DUTIABLE COMMODITIES ORDINANCE CHAPTER 109 AND DANGEROUS DRUGS ORDINANCE (NO. 41 OF 1968)
Commodity
Tobacco
Chinese prepared tobacco
Foreign cigarettes
Macau & Chinese cigarettes
Cigars
Tobacco stems
Tobacco leaf
Pipe tobacco
Liquor
...
Quantity
Unit
1967-68
1968-69
lbs.
282.48
431.50
...
lbs.
...
2,419.21
958.58
lbs.
763.44
842.46
***
lbs.
193.50
98.56
...
...
...
lbs.
45.33
21.83
...
...
...
...
lbs.
138.40
lbs.
16.20
12.72
...
European type liquor Chinese type liquor
Beer
...
.....
Chinese medicinal wine
gals.
772.47
391.83
gals.
2,743.28
3,750.48
...
...
gals.
649.98
198.31
...
gals.
129.11
132.72
Alcohol
...
Mash Stills
...
...
...
...
...
...
gals.
226.26
78.00
gals.
156,268.00
176,077.00
nos.
130
184
Hydrocarbon Oils
Treated diesel oil
Dangerous Drugs
Opium, prepared
Opium, raw
Opium, dross
Opium, water
***
...
Morphine hydrochloride
Diacetylmorphine hydrochloride
Barbitone
Cannabis (marijuana)
Opium poppy .....
Opium pipes
...
Opium pipe heads
Opium lamps
...
gals.
28,421.50
47,229.00
lbs.
1,071.01
363.03
lbs.
2.00
3.33
lbs.
0.53
8.29
fl. ozs.
100.80
126.30
lbs.
34.63
47.58
Ibs.
0.15
0.03
lbs.
331.51
551.17
lbs.
0.15
2.30
lbs.
6.50
...
nos.
22
21
...
nos.
7
14
nos.
2
5
82
TABLE 9
COMMERCE AND INDUSTRY DEPARTMENT, HONG KONG
Deputy Director,
Administration & Industry
Assistant Director, Industry
Industry Division
DIRECTOR
Assistant Director, Preventive Service & Dutiable Commodities
Deputy Director, Commercial Relations
Assistant Director, Commercial Relations (Europe)
Assistant Director, Commercial Relations (Other Regions)
Overseas
Offices
Preventive Service
"E" Division
"R" Division
Administration & Accounts Branches
Senior Executive Officer Treasury Accountant
Accounts and Stores. Personnel.
Internal Administrative
Matters.
General Duties Branch
Administrative Officer
Legislation. Departmental Reports. Departmental Publicity and Public Relations. Import and Export
Licensing.
Exchange Controls
(Licensing Procedure). Strategic Commodities. Reserved Commodities.
Industrial Development
Branch
Senior
Trade Officer
Industrial Land. Industrial Promotion, Industrial Infrastructure, Trade Complaints. Health and Safety
Standards of Hong Kong Products. Liaison with Industrial
Organizations.
General Assistance to
Industry
Certification
Branch
Industry Inspection Branch
Dutiable Commodities
Senior
Trade Officer
Certification of Origin (including Standard Certificates, Comprehensive Certificates for the American Market and Commonwealth Preference Documentation).
Senior
Industry Officer
Inspection of Factories
and Consignments under Certification and Export (Textiles) Licensing
Requirements, including
Investigations and Prosecutions.
Dutiable Commodities
Control-Tobacco, Hydrocarbon Oils, Table Waters, Methyl Alcohol, Alcoholic Liquors.
Chief
Preventive Officer
Protection of Revenue. Excise Duties. Anti-Smuggling
Operations.
Essential Supplies
(Food).
Senior
Trade Officer
Commercial Policy
(Europe),
Liaison with Trade
Development Council
and Export
Insurance
Corporation.
Credit
Trade and Industry
Advisory Board.
Senior Trade Officer
Commercial Policy
(Other Regions). Liaison with Trade
Development Council and Export Credit Insurance Corporation. Cotton Advisory Board,
Establishment
(excluding
(119)
supernumerary posts)
31st March 1969.
(24)
83
(22)
(87)
(111)
(35)
(838) Uniformed
(34) Civilian
Total Permanent Establishment: 535 civilian officers plus 838 in the uniformed Preventive Service.
Total Cost
About $20 million (estimate for 1969-70).
Total Revenue Collected
: About $363 million (estimate for 1969-70).
(47)
(35)
London
Brussels
Washington
Geneva
(21)
TABLE 10
NET REVENUE COLLECTED FROM ALL SOURCES
Actual Revenue
Approved
Estimates
Increase/ Decrease
1968-69
1968-69
1967-68
$
$
$
%
Duties
Hydrocarbon oils imported Intoxicating liquor imported... Liquor other than intoxicating
liquor imported Tobacco imported
Liquor locally manufactured...
Table waters
114,000,000
117,337,293
108,120,836 + 8.5
65,000,000
69,379,458 62,055,754
+ 11.8
...
2,100,000
122,000,000
118,784,951
2,097,809 1,742,451 121,503,206
+ 20.4
2.2
21,000,000
19,960,586 19,221,883
+ 3.8
...
...
9,200,000
8,190,099
8,036,885
+1.9
Licences
Hydrocarbon oils
Liquor
Tobacco
**
197,000
194,871
193,455 + 0.7
...
...
...
3,246,000
3,323,914
3,128,505
+ 6.2
...
876,000
883,955
Miscellaneous (table waters)
Fines and Forfeitures
31,500
32,837
851,268 + 3.8 32,709 + 0.4
Fines
...
Forfeitures
Penalties
...
...
Fees of Court or Office
Denaturing
Factory inspection and
supervision
Import and export declarations
Official certificates
Official signatures
...
Departmental services and
***
...
supervision Overpayments in previous
years...
Anti-narcotic smuggling
guards
40
...
200,000 300
...
94,864 4,430
249,462 30
—
62.0
...
440,000
405,304
411,386
―
1.5
253
9,700,000
11,936,989
9,667,432
+ 23.5
...
24,000
3,960
16,497
76.0
1,000
3,425
825
+315.2
100
174
100
+ 74.0
4,807
3,051
+ 57.6
...
8,000
1,403
10,710
86.9
360,000
326,643
331,034
1.3
300
324
218 + 48.6
1,950
3.652
46.6
...
24,000
30,259
27,482
+ 10.1
32,451
107,000
97,153
94,663 + 2.6
Bonded warehouse supervision
Loss of, or damage to
Government property Advertisement revenue
Publications
Miscellaneous
...
Surplus and condemned stores
...
348,515,200 353,129,909 335,703,787 + 5.2
84
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