huhsb 
 
 A SUPPLEMENT TO 
 
 maftonal 
 immerce 
 
 i 
 
 DNIVEB 
 D0CDM1 
 
 TRADE 
 WITH 
 
 Hong Kong 
 
 1963 TRADE MISSION REPORT/A U.S. DEPARTMENT OF COMMERCE PUBLICATION 
 
 M' \ /., 
 
 
 
A SUPPLEMENT TO 
 
 International 
 Commerce 
 
 ... the weekly news magazine for world 
 traders published by the Bureau of 
 International Commerce and sold by 
 the Superintendent of Documents, U.S. 
 Government Printing Office, Washing- 
 ton, D.C. 20402, and by Department of 
 Commerce Field Offices for $16 a year. 
 
U.S. DEPARTMENT OF COMMERCE 
 
 Luther H. Hodges 
 Secretary 
 
 Franklin D. Roosevelt, Jr. 
 Under Secretary 
 
 Jack N. Behrman 
 
 Assistant Secretary for Domestic 
 
 and International Business 
 
 Eugene M. Braderman 
 
 Director, Bureau of International Commerce 
 
 For sale by the Superintendent of Documents, U.S. Government Printing Office 
 Washington, D.C., 20402 - Price 20 cents 
 
Members of 
 
 U.S. Trade and Development Mission to Hong Kong 
 
 Lester L. Wolff 
 
 Mr. Wolff is Pres- 
 ■ ident and Founder 
 
 ^Ij^^^^^^^H of the Co-ordinated 
 
 ^ ~~.f^| Marketing Agency, 
 
 ^ ■ Inc., of New York 
 
 ^fe wJj^B City, which counsels 
 
 ~^S^r/^% 2 ~ com P et ' n g super- 
 
 ; *Wf- '. .;] market chains in ad- 
 
 m rafl^H I ver,isln S- promotion, 
 
 ij^ jj &SA merchandising, and 
 
 policy. In the process 
 
 of developing markets and promoting 
 
 products, Mr. Wolff has been in most 
 
 parts of the world and is a veteran of a 
 
 previous Trade Mission. 
 
 Frank M. Cruger 
 
 Now President of 
 the Indiana Manu- 
 facturers Supply Co., 
 Indianapolis, Ind., 
 Mr. Cruger was as- 
 sociated with a ma- 
 chine tool and hard- 
 ware business for 
 some 15 years until 
 1940 when his pres- 
 ent company was es- 
 tablished. He is also Vice President of 
 the Machine Products Corporation of 
 Dayton, Ohio. He is Chairman of the 
 Board of the National Small Business 
 Association of Washington, D.C., and 
 was recently re-appointed to the Board 
 of Directors of the Small Business Ad- 
 ministration National Council of Con- 
 sultants. 
 
 George H. Paul 
 
 Mr. Paul, Direc- 
 
 ■ tor of International 
 H Sales for Levolor 
 
 rT H Lorentzen Inc. of 
 
 '«*» r^^H^ New YorI<; Cit y- ' s 
 
 W ^m responsible for his 
 — *^m. company's export 
 ^f^^flnj fe| activities, including 
 ^^^^^1 licensing, joint-ven- 
 ■HIA ^ H ture, overseas invest- 
 ment, marketing, 
 and distribution. In export trade for 30 
 years, he speaks and understands French, 
 German, and Spanish. 
 
 Hong Kong Mission 
 
 The U.S. Marketing and Indus- 
 trial Development Mi ssion to Hong 
 Kong visited there from November 
 1 to November 7. 
 
 At Hong Kong, the Mission: 
 
 • Set up a Trade Information 
 Center 
 
 • Interviewed 214 local busi- 
 nessmen 
 
 • Developed 80 export oppor- 
 tunities and 33 import opportuni- 
 ties 
 
 In addition, the Mission brought 
 back details of opportunities for 
 U. S. businessmen to invest in 
 Hong Kong enterprises. 
 
 Mission Director was Milton A. 
 Berger, Deputy Director of the Bu- 
 reau of International Commerce's 
 Office of Commercial and Finan- 
 cial Policy. 
 
 Five U.S. businessmen served 
 with himonthe Mission. S. David 
 Horner, director of the Investment 
 Resources Division of the Bureau 
 of International Commerce, was 
 Trade Development and Invest - 
 ment Officer for the Mission. 
 
 Milton A. Berger 
 
 Trade Mission Di- 
 rector Milton Berger 
 is Deputy Director 
 of the Office of Com- 
 mercial and Finan- 
 cial Policy in the 
 Bureau of Interna- 
 tional Commerce. 
 He has had a long 
 career in the fields 
 of Far Eastern trade, 
 investment, and foreign trade policy. Mr. 
 Berger is a graduate of Union College 
 and Harvard Law School. He attended 
 Yale University's Area and Language 
 School, specializing in the Far Eastern 
 area and the Chinese language. Mr. Ber- 
 ger is a member of the faculty of George- 
 town University School of Foreign Serv- 
 
 S. David Horner 
 
 Mr. Horner, who 
 served as the Mis- 
 sion's Trade Devel- 
 opment and Invest- 
 ment Officer, is 
 Director of the In- 
 vestment Resources 
 Division of the Bu- 
 reau of International 
 Commerce. Before 
 entering Government 
 work, Mr. Horner had experience as 
 Bureau distributor for the Irrawaddy 
 Flotilla Co., a subsidiary of the Carrier 
 Corp.; sales engineer for the Powers 
 Regulator Co. in Chicago; General Man- 
 ager, then President of the Horner Floor- 
 ing Co. of Michigan. 
 
 Douglas J. Bennet 
 
 Mr. Bennet, Pres- 
 ident of the Brewster 
 Corp. of Old Lyme, 
 Connecticut, a mar- 
 keting and distribu- 
 ting corporation 
 which sells its prod- 
 ucts in most of Eu- 
 rope, is a marketing 
 and sales specialist. 
 Through personally 
 owned distributing corporations, Mr. 
 Bennet has developed markets for equip- 
 ment for several hospitals, nursing homes, 
 exhibits, and sanitation projects. 
 
 William O. Sword 
 
 President and 
 
 wttM 
 
 Founder of Petro- 
 leum Service Co. of 
 Wilkes-Barre, Penn- 
 sylvania, Mr. Sword 
 has been active in 
 creation of industrial 
 parks. He is a direc- 
 tor of three diversi- 
 fied manufacturing 
 firms which are ac- 
 tive in international trade: the Vulcan 
 Iron Works, the King Manufacturing Co., 
 and the Hardie Manufacturing Co. He is 
 also Director of Leslie Fay, Inc., textile 
 manufacturer. Mr. Sword attended Samur 
 Military Academy in Samur, France. 
 
 Reports by individual Mis 
 
 e reprinted from the December 9, 1963 i 
 
 of INTERNATIONAL COMMERCE. 
 

 'All systems are goV 
 
 Trade Mission finds 'unbelievable surge into industrialization' underway in Hong Kong 
 
 By MILTON A. BERGER 
 
 These are the impressions — and the 
 conclusions — of the first full-scale offi- 
 cially-sponsored U.S. "trade mission" to 
 Hong Kong. The conclusions are positive. 
 All systems are go! 
 
 The U.S. Marketing and Industrial De- 
 velopment Mission to the British Crown 
 Colony of Hong Kong functioned there 
 from October 31 through November 10. 
 Its presence was welcomed and supported 
 by leading Government officials, includ- 
 ing the Governor, Sir Robert Black, and 
 by the leading trade and industrial organ- 
 izations. There seems no doubt that the 
 Mission represented to the official and the 
 business communities of Hong Kong a 
 clear intent to underscore and promote 
 
 the positive side of American commercial 
 relationships with Hong Kong. Hopefully, 
 the Mission went some distance towards 
 correcting the distorted view held there of 
 American interest, resulting from the ap- 
 plication of strategic trade controls and 
 from arrangements restricting Hong 
 Kong's exports of textiles. 
 
 In its meetings with Government offi- 
 cials, business organizations, and press 
 interviews, the Mission stressed the fact 
 that the U.S. was fostering expanded 
 trade with Hong Kong not only through 
 promoting efforts involving simple export 
 sales, but also by creatively expanding the 
 Hong Kong market. The latter includes 
 the promotion of a wider variety of im- 
 ports into the United States, and partici- 
 pation by American firms in joint ven- 
 
 tures and licensing arrangements which 
 would enhance Hong Kong production, 
 while using American technology, ma- 
 chinery and raw materials. 
 
 As Mission leader, I sought to inter- 
 pret American commercial policy in gen- 
 eral and with particular application to 
 Hong Kong, pointing out our efforts to 
 liberalize tariffs and trade controls in 
 negotiations connected with the General 
 Agreement on Tariffs and Trade and in 
 other multilateral and bilateral efforts. 
 In respect to Hong Kong, the Mission it- 
 self was the best demonstration of the 
 U.S. Government's genuine interest in 
 expanding commercial relations on a mu- 
 tually advantageous basis. 
 
 The businessman members of the Mis- 
 sion, selected as representatives of the 
 
entire U.S. business community, report 
 on these pages. Regardless of their di- 
 verse backgrounds they were unanimous 
 in one thought. Very profitable trade re- 
 lationships abound, but there are far too 
 few takers. The conditions are favorable 
 but there is too much inertia. 
 
 What were the conditions the Mission 
 found in Hong Kong? There was a great 
 population pressure swollen by the influx 
 of refugees from mainland China. There 
 was an absence of natural resources, save 
 a fine harbor and the most valuable re- 
 source of all — energetic, intelligent peo- 
 ple. There was internal political stability 
 and respect for law despite uncertainty 
 over the long-term future. There was a 
 Government administered wisely and with 
 compassion for the plight of the homeless 
 and the unemployed. There was the fab- 
 ric, of a highly developed commercial 
 community — shipping, banking, insur- 
 ance, an extensive and skilled trading 
 community and a tremendous drive to do 
 business. 
 
 There was an almost unbelievable surge 
 into industrialization necessitated by the 
 diminishing significance of transshipment 
 trade and the need to provide employment 
 for the population spurt. There were vast 
 construction projects, rivalling the largest 
 in America and Europe — private com- 
 
 mercial and residential construction on a 
 massive basis, Government-supported and 
 private housing projects of most impres- 
 sive proportions, and the construction of 
 factories, particularly on industrial estates 
 on reclaimed land. And there were gigan- 
 tic public works projects designed to 
 avoid floods and assure a water supply — 
 a commodity which was being dealt out 
 parsimoniously during the unusually dry 
 spell prevailing during the Mission's visit. 
 
 A dynamic economy 
 
 This was the fact of Hong Kong — to 
 the tourist a glittering bazaar; to the 
 businessman a dynamic economic entity 
 highly charged with business reactivity. 
 There was the need to do business, a ca- 
 pacity to do it, the will to do it. It was 
 impossible not to be responsive. 
 
 What kind of business could we do? 
 The answer is partly in the kind of busi- 
 ness we have been doing. Hong Kong is 
 already the United States' third largest 
 market in the Far East for goods not fi- 
 nanced by the U.S. aid programs, ranking 
 behind Japan and Philippines. Last year 
 it took US$130,000,000 U.S. exports and 
 contributed US$169,000,000 worth of 
 U.S. imports. The United States was its 
 largest customer; but the United States 
 supplied less than 12% of Hong Kong's 
 
 imports, ranking behind Communist 
 China and Japan. 
 
 Principal exports, imports 
 
 The Hong Kong market is not saturated 
 with American goods or with anybody 
 else's goods. As anywhere, consumer 
 needs will rise with consumer earnings, 
 which in turn will rise with the further 
 development of the economy, particularly 
 with new directions in industrialization. 
 The opportunities for using Hong Kong 
 as a base for Far Eastern business opera- 
 tions by American firms and as an inter- 
 mediate supply center for the imports of 
 the region have not been fully exploited 
 and deserve study. 
 
 400 Business Proposals 
 
 The Mission, in addition to its meet- 
 ings with Government and business 
 groups, took up most of a week in in- 
 dividual business consultations on the 
 nearly 400 Business Proposals brought 
 with it to Hong Kong from American 
 firms, and on prospects generated during 
 these conferences. The conclusions of the 
 individual members agreed on most major 
 points. These perhaps are the principal 
 ones: 
 
 ^ Trade is essentially unfettered; the 
 area of restraint is overshadowed by the 
 realm of possibilities. 
 
 |> Far more American business pres- 
 ence is needed— more direct local repre- 
 sentation, more joint venture participa- 
 tion, and more and longer visits by seri- 
 ous-minded American businessmen. 
 
 ^ American products can be more 
 competitively sold with good promotion, 
 good merchandising techniques, improved 
 terms, and top-grade local representation. 
 
 ^ American machinery and equipment 
 can be sold and can figure importantly in 
 Hong Kong's further industrialization, if 
 coupled with American research, inten- 
 sive contact work and arrangements 
 whereby American suppliers furnish tech- 
 nology, and share in the market develop- 
 ment responsibility. 
 
 £ American equipment, and materials 
 can figure more prominently in the tre- 
 mendous private and public construction 
 programs in Hong Kong. On-the-spot 
 estimating, engineering analysis, and con- 
 tinuous contact are vital. 
 
 fy Hong Kong products require greater 
 acceptance for quality in world markets 
 and there should be a substantial expan- 
 sion effort to project a quality image 
 abroad. 
 
 ^ Hong Kong needs to be known bet- 
 ter in the United States, and unofficial 
 efforts being considered to promote Hong 
 
Kong products in the United States 
 through exhibitions, trade missions, and 
 resident representation are bound to be 
 productive. 
 
 ^ Hong Kong's capacity to manufac- 
 ture cheaply can be regarded as a posi- 
 tive asset to earnings of American firms 
 and their employees in the United States 
 and need not be eyed as a raw threat to 
 American job security. A happy marriage 
 of American technology and Hong Kong 
 production capacity can result in the pro- 
 duction of components for goods pri- 
 marily produced in the United States 
 which would make the end products com- 
 
 Our principal exports have been 
 (values indicated in millions of U.S. 
 dollars for leading items in 1962): 
 raw cotton (11),- tobacco and man- 
 ufactures (10.7); chemicals (9.3); 
 aircraft parts and accessories (8.7); 
 medicines and pharmaceuticals 
 (7.8); synthetic fibres and manufac- 
 tures (7.3); and fruits and prepara- 
 tions (7.1). 
 
 Our chief imports have been 
 (values indicated in millions of U.S. 
 dollars for leading items in 1962): 
 cotton manufactures (58.9); miscel- 
 laneous textile products (20.3); 
 wool manufactures (12.3); electrical 
 machinery and apparatus (7.9); 
 and dolls, toys, athletic and sports 
 goods (6.7). 
 
 petitive in cost with those of other world 
 suppliers. 
 
 ty Developing the Hong Kong market 
 is not a one-man proposition; many are 
 willing to help. This includes the Hong 
 Kong Government, in particular the De- 
 partment of Commerce and Industry; the 
 Federation of Hong Kong Industries; the 
 Chinese Manaufacturers' Association; the 
 Hong Kong General Chamber of Com- 
 merce; and others. Local bankers are 
 capable and helpful. And finally, the 
 American Consulate General in Hong 
 Kong has a tradition of perceptiveness, 
 skill, and willing service. 
 
 RETAIL TRADE SHOW 
 
 The 11th International Exhibition of 
 Retail Trade Equipment was held in 
 Paris Oct. 12-21. Exhibitors totaled 261, 
 including 7 from the U.S. Over 50,000 
 professional visitors, including managers 
 of retail stores, attended the show. The 
 next event will be held in November 
 1965 at the Pare des Expositions, Porte 
 de Versailles, in Paris. U.S. firms are 
 urged to consider participation. 
 
 Not enough land, water or 
 natural resources, but it is 
 gateway to tremendous sales 
 
 Ideal location, unlimited energy and uncanny business 
 sense make Hong Kong markets a must for U.S. firms 
 
 By DOUGLAS J. BENNET 
 
 HONG KONG— The words "Hong 
 Kong" mean "Fragrant Harbor," and, 
 believe me, that's what this colony is . . . 
 if you like the smell of money. 
 
 It doesn't have enough land to grow 
 its own food. It doesn't have enough 
 water. It doesn't have any natural re- 
 sources to speak of. It does have a dy- 
 namic business sense, unlimited energy 
 and a location at the gateway to the whole 
 Far East. 
 
 After 10 days of talks with Chinese, 
 British and American businessmen and 
 government officials and visits to stores, 
 offices and plants here, I am ready to 
 say without reservation that, given an 
 appropriate product, any U.S. manu- 
 facturer who has his own salesman or 
 distributor in Chicago ought to have one 
 in Hong Kong. 
 
 My purpose in writing this article is 
 to convey an eye-witness account of this 
 market and the opportunity it offers 
 American business. 
 
 First, Hong Kong doesn't involve the 
 risks of unexplored territory. About 300 
 U.S. businesses are already here, and 
 many of them have been here for a long 
 time. Some are our giants. Some you may 
 never have heard of. They are selling 
 everything from juke boxes to power 
 plants. (For a dollar you can get the list 
 of U.S. companies active in Hong Kong 
 from your Department of Commerce 
 Field Office.) 
 
 Meanwhile, literally hundreds of Amer- 
 ican companies with appropriate prod- 
 ucts for this market are passing up their 
 chance not only to make additional 
 profits now but also to share in what 
 most observers believe will be an ex- 
 plosive commercial growth during the 
 next 10 years. 
 
 Hong Kong for headquarters? 
 
 Hong Kong is splendidly located for 
 the purpose of taking first steps in the 
 Far East. The total population of avail- 
 able markets to be serviced from Hong 
 
 Kong is nearly 300,000,000. This is half 
 again as large as the population of the 
 United States. The area includes two 
 of the world's most important free ports 
 — Hong Kong and Singapore. 
 
 Make any adjustment you please for 
 lower per capita incomes in these mar- 
 kets and you still have a potential that 
 demands close examination by any U.S. 
 manufacturer who is concerned about his 
 company's future. 
 
 Hong Kong's location and its free-port 
 status also make it a fine warehousing 
 .point for the Far East. Deliveries to Far 
 East points are, of course, much quicker 
 from here than from the States, and 
 prompt delivery is just as important out 
 here as it is at home. 
 
 Again, warehousing here makes it more 
 feasible for the American manufacturer 
 to accept small orders from distributors 
 or users. 
 
 Your product will sell 
 
 Ten to one your product will sell, be- 
 cause American merchandise is well-liked 
 all over the Far East, and in practically 
 all areas business is booming. 
 
 You won't move ahead, however, with- 
 out some research. The best way to get 
 the facts is to come out here yourself. 
 Nobody is better equipped than you to 
 evaluate your chances and to check the 
 prices and quality of competitive prod- 
 ucts, if any. The trip is a legitimate busi- 
 ness expense, and chances are that you 
 will be able to wrap up an arrangement 
 for distribution while you are here. At 
 the same time you will meet many busi- 
 ness and government people who can 
 give you good advice. 
 
 If a trip is impossible, there are re- 
 search services in Hong Kong. Two are 
 American companies, and there are oth- 
 ers. There are also good credit-checking 
 agencies. 
 
 Finally, you can get some solid pre- 
 liminary indications about your chances 
 in the Far East from the Commerce De- 
 partment in Washington, from any of its 
 
speak the language. Most of your 
 large distributor prospects or users will 
 be able to speak English, but as you go 
 down the line to dealers and other 
 smaller organizations, language be- 
 comes more important, 
 d) A comparatively small investment 
 is required, and it is an expense item. 
 
 Few government requirements 
 
 In appraising these approaches to the 
 Hong Kong market it will help to know 
 about the requirements of the Colonial 
 Government for establishing a business. 
 
 Publications available from the Depart- 
 ment of Commerce providing additional 
 information on this area include: 
 
 Economic Developments in Hong 
 
 Kong, 1962. OBR 63-44. 7 pp. 1963. 
 
 Investment Factors in Hong Kong. 
 
 OBR 62-12. 9 pp. December 1962. 
 
 Licensing and Exchange Controls, 
 
 Hong Kong. Part 2, No. 60-51. 8 pp. 
 
 October 1960. 10 cents. 
 
 Living Conditions in Hong Kong. OBR 
 
 63-96. 14 pp. April 1963. 
 
 Preparing Shipments to Hong Kong. 
 
 OBR 63-55. 6 pp. March 1963. 
 
 39 Field Offices, and through the Com- 
 mercial Officers in our various Consulates 
 and Embassies in this part of the world. 
 
 Selling in Hong Kong 
 
 There are at least six ways to approach 
 this market once research has given you 
 the green light. 
 
 ty You may want to set up a wholly 
 owned subsidiary to manufacture Here. 
 The standard rate of corporate income 
 tax levied by the Hong Kong Government 
 is 121/2%. 
 
 ^ You may want to go into a joint 
 venture with a Hong Kong businessman 
 or a group. They need the technical 
 know-how provided by the joint venture 
 plan, but they don't appear to need 
 capital. 
 
 ^ The best bet for you may be to 
 license a Hong Kong businessman or 
 group to manufacture here. You sell 
 them the necessary equipment and raw 
 materials, provide technical assistance at 
 the outset, and collect your royalty. An 
 arrangement of this kind has many ad- 
 vantages for both sides. It has beneficial 
 effects upon the balance of payments of 
 each country. It reduces the product's 
 selling price out here. It requires little or 
 no investment of your capital and you 
 have little responsibility for the selling. 
 
 ^ If straight export sales are indi- 
 cated as the best approach, you may de- 
 cide to follow the old pattern of appoint- 
 ing a distributor. If you do, be sure to 
 
 look for vigor. Established trading or- 
 ganizations are capable of a first-rate job, 
 if their attention is not limited to taking 
 orders on top brands. You want people 
 who have the fire to be competitive. 
 
 ^ Many U.S. companies have set up 
 their own subsidiaries to handle their 
 Far East distribution. Others have en- 
 couraged some American businessmen 
 outside their own firm to set up his own 
 distributorship to concentrate on the lines 
 of one, two or three U.S. manufacturers 
 only. 
 
 ^ Think seriously about building a 
 profitable, long-range Far Eastern opera- 
 tion from the ground up by sending your 
 own man out here — even just one as a 
 starter. Don't bring in a new man for 
 the purpose. Select a top-notch salesman 
 or salesman-engineer who knows your 
 story thoroughly. Here are the advan- 
 tages : 
 
 a) If technical know-how is necessary, 
 your man has it. 
 
 b) You'll get the best possible selling 
 job once he finds his way around. One 
 of our largest U.S. electrical com- 
 panies which has had distributors for 
 its various lines in Hong Kong for 
 years, stationed a sales-engineer here 
 for the first time nine months ago. 
 Sales are 15% ahead of the same pe- 
 riod of 1962. 
 
 c) As sales warrant it, your man can 
 begin to build into your organization 
 effective salesmen and servicemen who 
 
 Modern stores in 
 Hong Kong lack 
 varied U.S. lines 
 
 Markets booming but U.S. losing 
 out due to lack of interest in 
 necessary promotional efforts 
 
 By LESTER L. WOLFF 
 
 No one need give Hong Kong any 
 build-up, because that is just the way it 
 is going — up! That is the only way it 
 can go, with its limited area and its 3Vi 
 million population. 
 
 There is a continuing need to utilize 
 everything available to its utmost limits. 
 Hong Kong is a cosmopolitan city with 
 shops that will do credit to any big city 
 anywhere. It is oriental in underlying 
 character — where the East has met the 
 West. It is above all a commercial union, 
 a happy "cosmos" of goods, where the 
 baubles of the world like a pirate's chest 
 overflowing with treasure, are on display 
 for all to see. 
 
 But in this great upsurge of Hong 
 Kong, we are losing ground, and it is our 
 own fault, for we are not fully pursuing 
 the tremendous opportunities that exist 
 
here. Perhaps we are inhibited from pur- 
 suing the untapped Hong Kong potential 
 because of our distorted image of the 
 Colony, created by inferior merchandise 
 that tends to flood our market, creating 
 the stigma that Hong Kong-produced 
 goods mean low and inferior quality 
 merchandise. Much of this "image," how- 
 ever, and many of the problems that have 
 been associated with Hong Kong mer- 
 chandise in the U.S. have been created by 
 the demands of our own importers, who 
 often insist on buying Hong Kong mer- 
 chandise at low prices inconsistent with 
 the quality necessary to produce a satis- 
 factory product for the American market. 
 
 This also proves to be the limiting 
 factor in the sale of our own goods to 
 Hong Kong; for the local manufacturer 
 must, of necessity, seek ways and means 
 to adjust his production and the purchase 
 of raw materials and components to the 
 price demands of our market. He must 
 seek sources that will give him compo- 
 nents at prices he can afford to pay (re- 
 gardless of their quality). I have seen 
 some extremely good craftsmanship in 
 items produced in Hong Kong. It is for 
 this reason that I think there is an ex- 
 cellent opportunity to sell quality com- 
 ponents and raw materials for ultimate 
 use in Hong Kong manufactured "top 
 line" merchandise. 
 
 If we are to sell in the Hong Kong 
 market we must aggressively pursue this 
 market with "Creative Marketing." What 
 Hong Kong desperately needs is technical 
 know how, design, skill and readjustment 
 of its marketing concepts. By making 
 available these services, the U.S. will in- 
 crease the potential market for its own 
 products. Technical skills have advanced 
 considerably in Hong Kong, but they have 
 not kept pace with American skills, and 
 they are a number of years behind cur- 
 rent concepts. Truly our manufacturers 
 must become "ORIENTed" to the de- 
 mands of this market. 
 
 Strong demand 
 
 I do not believe that American prod- 
 ucts have come near to even scratching 
 the surface of the latent demand for our 
 consumer goods. A number of large 
 American companies have successfully 
 secured various segments of this market. 
 However, the majority of smaller and 
 medium sized firms in the United States 
 do not appear to have even considered 
 the market. There is a definite demand for 
 U.S. products here, an area that remains 
 largely unfettered by tariff restrictions, 
 save for five categories. Hong Kong is 
 practically an untapped source for U.S. 
 export sales. However, consumer items 
 that are marketed here must be strongly 
 
 supported by advertising. They are, for 
 the most part, treated as status symbols. 
 Brand identification for U.S. products is 
 mandatory, for unbranded nondescript 
 merchandise is readily available. Thou- 
 sands of retail businesses are located in 
 Hong Kong. They vary from large de- 
 partment stores like Shui Hing and Wing 
 On to manufacturing retailers and stalls. 
 
 Generally, the only thing fixed about 
 prices (except in the large department 
 stores) is the fact that the customer is 
 expected to bargain. It is an inherent 
 part of the nature of the Orient. . . . This 
 goes for wholesale as well as for retail. 
 Due consideration should be given to 
 this when dealing in this area. 
 
 The large trading companies, old and 
 established, represent most of the U.S. 
 products now sold here. We learned from 
 interviews we had that these companies 
 are desirous of adding to the existing 
 lines. However, don't overlook many of 
 the smaller firms who are less burdened 
 with long lists of items, and who may 
 therefore be able to give greater emphasis 
 to new products. Licensing seems to be 
 a most desirable procedure for a local 
 manufacturer who seeks the umbrella of 
 a brand name in lieu of any other sig- 
 nature of standard. 
 
 Diversification of industry in Hong 
 Kong is sorely needed. When one firm 
 produces a saleable item there is an 
 avalanche of others who follow in the 
 wake of the original success. Take, for 
 example, that highly successful export 
 item, plastic flowers. Uncounted busi- 
 nessmen spoke to me about the export 
 
 of Hong Kong made artificial flowers to 
 the U.S. If everyone is not himself in 
 the business of producing plastic flowers, 
 he at least has a brother in it. This clearly 
 indicates a lack of sales orientation that 
 uses market research as one of its basic 
 tools. Diversification of industry will help 
 Hong Kong, and also will help the U.S. 
 to sell more equipment and raw prod- 
 ucts to Hong Kong. 
 
 In consumer goods, we are in free 
 competition with merchandise from all 
 over the world. If we are not selling in 
 Hong Kong we are not being competi- 
 tive. It used to be that part of the Amer- 
 ican unofficial "passport" was a bar of 
 chocolate, a package of chewing gum, 
 a pack of cigarettes or a pair of stock- 
 ings. Why? Because of the fact that we 
 were superior producers. £4ow, it is diffi- 
 cult to find American brands of candy 
 in Hong Kong. European and British 
 candy dominate the market. To me, this 
 indicates a lack of aggressiveness on the 
 part of American candy producers. Ciga- 
 rette manufacturers, however, have done 
 their usual enterprising selling, and even 
 with an import duty our brands are much 
 sought after here. (If I am too critical of 
 U.S. manufacturers, it is prompted by 
 the tremendous opportunities I see here.) 
 
 Oriental tastes 
 
 The population of Hong Kong, being 
 99 percent Chinese, has certain tastes 
 that dictate educated exploitation by U.S. 
 manufacturers. Fresh foods are preferred 
 by the Chinese household. Nevertheless, 
 
frozen poultry has made strong inroads, 
 even over Chinese resistance to a frozen 
 product. If we can overcome the natural 
 preference for fresh food in one category, 
 it seems reasonable to assume that through 
 proper promotion we should be able to 
 do this for other food items. This pos- 
 sibility exists for a vast number of con- 
 sumer goods. 
 
 The problem for the American firms 
 in selling here is the image of "high- 
 priced" American goods. I do not think 
 that the average Hong Kong merchant 
 has been exposed to our medium- and 
 lower-priced lines. We were constantly 
 faced with the objection that American 
 products are unable to compete on a price 
 basis. As one way to meet this problem 
 it is imperative that the Hong Kong 
 market be considered as a large scale pur- 
 chaser and that the American exporters' 
 price structure be adjusted accordingly. 
 
 No super-markets 
 
 On the retailing side, there are only a 
 few superettes here, nothing we would 
 call a large super-market. We have been 
 told that the super-market concept has 
 been hindered by the lack of availability 
 of real property. I do not think that this 
 is true. I think it is more a lack of local 
 imagination. I do feel that this is an area 
 that can well use a number of American 
 style super-markets. 
 
 An exciting new project is underway 
 here. The Hong Kong and Kowloon 
 Wharf and Godown Company is building 
 a sea terminal 250 feet wide to be situ- 
 ated in Tsim Sha Tsui on the Kowloon 
 side adjacent to the Star Ferry, the great- 
 est traffic center in the Colony. The ter- 
 minal will be capable of berthing the 
 largest ocean-going liners. Incorporated 
 into this dock area, which will jut more 
 than 1,250 feet into the harbor, will be 
 a shopping complex that will have a salu- 
 tary effect upon the general shopping 
 pattern of Hong Kong. This project is 
 now under construction and is scheduled 
 for completion sometime in 1965. 
 
 3 types of sales 
 
 There are three types of sales in Hong 
 Kong that offer a variety of possibilities 
 to enterprising American producers: 
 
 1. Sales to the 3V£ million consumers 
 of Hong Kong; 
 
 2. Sales to the 7,305 registered and 
 recorded factories in the Colony 
 and to the thousands of unregis- 
 tered small manufacturers here; 
 
 3. Sales for re-export from the Colony. 
 
 One factor greatly influencing the gen- 
 eral demeanor of the populace and the 
 business community is the "Sword of 
 Damocles" that hangs over the head of 
 
 Hong Kong. The 99 year lease granted 
 the New Territories and upper Kowloon 
 in 1898 has but 35 years to run before 
 the area reverts back to mainland China. 
 (Hong Kong island and lower Kowloon 
 were permanently ceded to Britain.) Does 
 the fact of eventual reversion to China 
 have any influence? I think it does. I be- 
 lieve it conditions the thinking of a local 
 manufacturer who looks to his new in- 
 
 vestment in equipment and machinery, 
 to the buyer and to the seller who wants 
 to make his profit quickly. Whether the 
 lease will be renewed, or whether Com- 
 munist China will permit the- Colony to 
 continue its existence even tomorrow, 
 are problems for the political experts to 
 ponder, but I do think that the Hong 
 Kong resident is constantly wondering 
 about the future. 
 
Finds outlook for exports and joint 
 venture favorable 
 
 Sophisticated market for wide range of raw materials, capital 
 equipment, consumer goods seen 
 
 By GEORGE H. PAUL 
 
 As a member of the U.S. Trade Mis- 
 sion to Hong Kong I have had an oppor- 
 tunity to speak to many businessmen in 
 this part of Asia. I found the outlook for 
 U.S. exports to Hong Kong favorable, 
 and many opportunities for joint ventures 
 and license arrangements. 
 This British Crown Colony represents 
 iophisticated market for a wide range 
 
 While they can use American produc- 
 tion and distribution know-how, there 
 would generally be resistance to outsiders 
 running local factories. A suggested ap- 
 proach would be to provide instruction 
 and to share earnings, rather than to 
 control. 
 
 Prefer joint ventures 
 
 My impression is that Hong Kong 
 businessmen prefer joint ventures to li- 
 censing arrangements. A joint venture will 
 
 of raw materials, capital equ.pment and draw the Hong Kong manufact urer closer 
 
 consumer goods. to his vs count erpart and he will remain 
 
 One thing that became clear to me closer for a longer period of time In 
 
 during my visit: American firms are by other words> a j oint ventU re is more 
 
 no means realizing their great potential meaningful, more lasting. I had the privi- 
 
 in Hong Kong. Compared to other areas lege of meeting with W . T . Wilkinson, 
 
 where American goods have made better who is the j oint vent ure and licensing 
 
 inroads, Hong Kong offers the additional specialist of the Hong Kong and Shang- 
 
 advantage that almost all imports are 
 duty-free and there are few restrictions. 
 U.S. exports to Hong Kong consist 
 mainly of cigarettes and tobacco leaf; 
 oranges and other fruit; plastic molding 
 compounds; pharmaceuticals and cos- 
 metics; air conditioners; frozen poultry; 
 black plate; soyabean oil and raw cotton. 
 
 hai Banking Corporation. He urges 
 seas businessmen coming to Hong Kong 
 to allow sufficient time to carry out nego- 
 tiations. His point is important. The ten- 
 dency is to "buy Hong Kong short," and 
 think that two or three days here will be 
 sufficient. It is almost a universal experi- 
 ence on the part of visiting businessmen 
 
 Hong Kong importers are also buying wno come here to carry out simpl 
 
 from the U.S. an increased amount of 
 electrical appliances; hardware; machin- 
 ery; textile fabrics; construction materi- 
 als; and electronic equipment. 
 
 Ask detailed quotations 
 
 I have discussed business proposals 
 from U.S. firms covering these items with 
 Hong Kong manufacturers and import- 
 ers. The interest in U.S. products is im- 
 pressive and I was "able to forward to 
 American suppliers a great number of 
 requests for detailed quotations and other 
 information. 
 
 The Hong Kong businessmen display 
 great ingenuity, but would benefit from 
 the technical assistance and sales know- 
 how which the U.S. can provide. The area 
 needs new industries, new products and 
 diversification of its present facilities. 
 Many businessmen called, not only to get 
 acquainted with the various products 
 which they can profitably import from 
 the U.S., but also to determine what new 
 industries they can develop with Ameri- 
 can help. They don't need money, as 
 proven by their own ability to finance 
 large industrial projects (Hong Kong has 
 over 90 banks!). Many of them, however, 
 welcome U.S. financial participation. 
 
 straightforward negotiations that they 
 find innumerable other opportunities for 
 the development of their businesses. Two 
 to 3 days here is quite inadequate and the 
 
 allotment of at least a week will seldom 
 prove to be a waste of time. 
 
 I would like to mention another impor- 
 tant factor: technical know-how has a 
 definite marketable value. There is great 
 attraction in investing through "know- 
 how" at a mutually agreed valuation. 
 Hong Kong manufacturers should find 
 it profitable to take advantage of the 
 marketing experience and technical assist- 
 ance offered by U.S. firms. 
 
 Many of the large U.S. manufacturers 
 produce and market their goods in Hong 
 Kong, but the medium-sized companies 
 have, on the whole, failed to market their 
 products in this part of the world. 
 
 The readiness on the part of Hong 
 Kong companies to cooperate with Amer- 
 ican companies is most encouraging. Due 
 to lack of information on Hong Kong, 
 many American companies are surprised 
 to find that good manufacturing facilities 
 exist in this area and can be made avail- 
 able to them. The U.S. Trade Mission 
 recommended that some permanent form 
 of trade display and some kind of infor- 
 mation service for Hong Kong should be 
 set up in the U.S. One important aspect 
 of such an effort would be to acquaint 
 U.S. businessmen with the quality stan- 
 dards of products made in the Colony, 
 thus dispelling the poor Hong Kong 
 image. 
 
 Getting to know each other and prof- 
 iting from an exchange of know-how 
 will, I hope, be an experience that will 
 be shared by more and more businessmen 
 everywhere. The opportunities exist — it is 
 up to the American businessmen to take 
 advantage of them. 
 
Demand for U.S. industrial 
 equipment increasing in Hong 
 Kong; no serious problems 
 
 Quality and service have made many U.S. products 
 acceptable in this sophisticated market; competitive 
 factors match domestic market; list opportunities 
 
 By FRANK M. CRUGER 
 
 An increasing demand for U.S. indus- 
 trial equipment is clearly evident from 
 discussions which the U.S. Marketing and 
 Industrial Development Mission to Hong 
 Kong held with individual businessmen 
 and major business organizations there. 
 
 The outlook for U.S. exports to Hong 
 Kong is more than favorable. There is 
 a warm feeling for U.S. business gen- 
 erally and a strong free enterprise philos- 
 ophy. In fact, the motto of Hong Kong 
 businessmen seems to be "Trade — not 
 aid," a welcome philosophy. The idea of 
 "self-help" which is so strongly ingrained 
 in the Hong Kong business community 
 should encourage interest on the part of 
 the American businessman. 
 
 Hong Kong is a sophisticated market 
 for a wide range of raw materials, capital 
 equipment and consumer goods. Among 
 local businessmen English is spoken and 
 catalogs and price lists are readily under- 
 stood. Except for the distance involved, 
 doing business in Hong Kong is not much 
 more complicated than in the States. 
 Even smaller business firms in the U.S. 
 encounter no really significant problems 
 in exporting to Hong Kong. 
 
 Although Hong Kong is considered a 
 price market it must be emphasized that 
 quality and service have made it possible 
 for many U.S. products to be accepted. 
 For example, U.S. earth-moving machin- 
 ery, tractors and air conditioning equip- 
 ment enjoy a large share of the Hong 
 Kong market. 
 
 A new dam project is presently using 
 more than US$1 million worth of U.S. 
 manufactured earth-moving equipment. 
 Although the general contractor for the 
 project is a Japanese firm, it is recognized 
 that American earth-moving equipment, 
 graders and tractors are less expensive 
 when used on a 24-hour day, 7-day week, 
 continuous basis. The local distributor 
 for this equipment maintains a stock of 
 
 spare parts and is now preparing to 
 service the equipment in the area. This 
 kind of service sells merchandise any- 
 where. 
 
 Business is good 
 
 Business conditions are very good in 
 this 'laissez-faire' economy. In the first 
 9 months of 1963 the U.S. had less than 
 11% of the total Hong Kong market. 
 This could be increased considerably if 
 American businessmen would take a 
 closer look at the possibilities here. In 
 recent years Japan and Western Europe 
 have increased their shares of the Hong 
 Kong market, since they have been more 
 active than U.S. businessmen in exploit- 
 ing the possibilities. If there are weak- 
 nesses in the U.S. business effort, they 
 are in the granting of credit, advertising, 
 delayed deliveries and servicing. Com- 
 petitive factors here are the same as in 
 other foreign markets or even in our 
 domestic markets. A good distributor or 
 agent can solve most problems on the 
 spot. Virtually all imports are duty-free 
 and other restrictions are minimal. 
 
 U.S. sales of air conditioning equip- 
 ment, tractors, bottling and canning ma- 
 chinery are already substantial. Opportu- 
 nities exist for expanded trade in build- 
 ers' hardware, portable electric tools and 
 light wood working and metal working 
 machinery, general hardware, textile ma- 
 chinery, electronics equipment, construc- 
 tion equipment and chemical fire-fight- 
 ing equipment. The steady growth of 
 small industry in this area also makes it 
 an attractive market for power tools of 
 all kinds. 
 
 There is no lack of money in Hong 
 Kong. Good opportunities can be found 
 for joint ventures, leasing, and invest- 
 ment in a wide range of possibilities that 
 should prove profitable if sound judgment 
 is used in determining the best profit 
 potentials. Local businessmen are articu- 
 late, sophisticated, and knowledgeable 
 
 in each product field. Their reputation for 
 integrity is high. 
 
 Optimistic attitude 
 
 It should be noted that the Hong Kong 
 Government seeks to avoid interference 
 with private business operation. An opti- 
 mistic attitude dominates the business 
 scene and there is vigorous economic 
 activity. There are massive public works, 
 commercial construction and housing 
 programs, and the resulting needs for 
 capital goods and materials indicate a 
 sizeable and expanding market in which 
 American suppliers can develop a greater 
 share. 
 
 Hong Kong's free port facilities, com- 
 bined with tax advantages (standard rate 
 of 12V6 percent on corporate profits) and 
 a stable, convertible currency enhance 
 investment opportunities. American in- 
 dustrial and commercial investment has 
 surged upwards in recent years. In the 
 last three years the number of American 
 firms has grown from 170 to about 300. 
 U.S. manufacturing investments, taking 
 advantage of the low-cost production and 
 the manual dexterity of local labor, are 
 generating considerable income. These in- 
 clude assembly and packaging in Hong 
 Kong under special licensing arrange- 
 ments for sales throughout the Asian and 
 Pacific area. Other investment opportu- 
 nities for U.S. businessmen include the 
 transistor radio and construction indus- 
 tries. Most of the large U.S. chain and 
 department stores have buying programs 
 in Hong Kong. There are also oil com- 
 pany branches, electronic equipment en- 
 terprises, and U.S. firms making soft 
 drinks, gloves, watch parts and copying 
 machines, among numerous other items. 
 In addition, American interests have also 
 expanded in the fields of aviation, ship- 
 ping, stock brokerage, insurance, hotels 
 and tourism. Total U.S. investment in 
 Hong Kong was estimated at well over 
 US$70 million at the end of 1962. 
 
 Market for parts 
 
 Maximum benefit from participation 
 in Hong Kong's industrial development 
 can be obtained from the manufacture of 
 labor-intensive products, mainly those 
 which are unsuited to mass production 
 methods, and which can be produced by 
 small firms or light industries. One 
 method is producing components or parts 
 for other Hong Kong industries such as 
 the manufacture or semi-processing of 
 metal parts and plastics requiring ele- 
 mentary industrial machinery. Another 
 suggestion is to export from Hong Kong 
 to highly industrialized countries such 
 products as transistorized units, metal, 
 
 10 
 
'Jill I 
 
 
 MAKE-READY: Workm. 
 
 
 plastic and mechanical toys. A third sug- 
 gestion is to manufacture in Hong Kong 
 for export to less developed countries 
 such goods as small metal products, 
 pumps, electric motors (FHP), and elec- 
 trical appliances of all kinds, possibly with 
 the exception of those that are mass- 
 produced in advanced countries. 
 
 Opportunities exist in Hong Kong for 
 the use of elementary machinery in the 
 production of portable air compressors, 
 home water pumps, air blowers, light 
 packaged steam boilers, simple industrial 
 machinery and small agricultural ma- 
 chinery and equipment. There is also a 
 field for the manufacturing of more tech- 
 nical small engineering accessories such 
 as hydraulic valves, lathe chucks and drill 
 chucks, magnetic chucks, light globe and 
 gate valves, variable speed drives, re- 
 duction units (also 'motorized), tools, 
 dies, jigs and fixtures and similar prod- 
 ucts. 
 
 Possibilities exist here in Hong Kong 
 for the manufacture of simple electrical 
 items such as switch boxes, fuses, circuit 
 breakers, attachment plugs and sockets, 
 household and light commercial fans, 
 hanging lamps and table lamps, residential 
 and light commercial air conditioning. 
 Production facilities are also available for 
 transistorized items such as radios, record 
 players, tape recorders, disc voice writ- 
 ers. Other possibilities include the manu- 
 facture of a competitive line of building 
 hardware, (e.g. hinges, locksets, door 
 closers, panel devices and other basic 
 cabinet and builders' hardware items). 
 
 In view of the ability of Chinese female 
 labor to perform tedious and intricate 
 work over long periods there are good 
 possibilities for using this labor supply 
 for the manufacture of such items as: 
 slide rules and geometrical instruments, 
 meters and testing equipment, electrical 
 measuring devices, medical and surgical 
 instruments, solenoid switches, engineer- 
 ing metrological instruments, pressure 
 indicators and regulators, watt-hour me- 
 ters, temperature controls, etc. 
 
 Distribution system 
 
 A highly-developed distributing system 
 has long been in operation in Hong Kong. 
 Most of the wholesale distributor agen- 
 cies are now British-Chinese owned and 
 operated; a high degree of mutual respect 
 exists among Hong Kong's British and 
 Chinese businessmen. 
 
 American business firms interested in 
 selling in the Hong Kong market and 
 seeking local distributors should write to 
 the nearest U.S. Department of Com- 
 merce Field Office, or the Bureau of In- 
 ternational Commerce, U.S. Dept. of 
 Commerce, Washington, D.C., to obtain 
 trade lists of the names and addresses of 
 the manufacturers, importers, whole- 
 salers, retailers and agencies covering 
 every product category. Also included 
 will be an outline of the type and volume 
 of production of the industries involved, 
 together with other pertinent marketing 
 information. This is the first easy step to 
 doing business in Hong Kong. 
 Unusual opportunity 
 
 American manufacturers of machinery 
 
 and equipment have an unusual opportu- 
 nity to enter into profitable business re- 
 lationships with Hong Kong firms. Many 
 prospects exist to expand older plants 
 and to supply new plants with U.S. ma- 
 chinery and equipment. Several hundred 
 Hong Kong businessmen evidenced great 
 interest in the 395 Business Proposals 
 brought by the Mission to Hong Kong. 
 American businessmen should come to 
 Hong Kong to observe the opportunities 
 for themselves. To better explore the pos- 
 sibilities it is very helpful when one is 
 in the Colony to contact the Hong Kong 
 Government's Dept. of Commerce & In- 
 dustry, the Hong Kong General Chamber 
 of Commerce, the Chinese Manufacturers 
 Association and the Federation of Hong 
 Kong Industries. The American Consulate 
 General will be pleased to assist in making 
 arrangements. 
 
 The United States presently enjoys a 
 relatively small (11%) share of the Hong 
 Kong import market. With more atten- 
 tion to this area, with a willingness to 
 discuss the possibilities with Hong Kong 
 businessmen, with some seed money spent 
 in advertising in Hong Kong, with a de- 
 termination to develop or change a prod- 
 uct to suit the Hong Kong market, plus 
 the genius of U.S. business, our share of 
 the Hong Kong market could be doubled. 
 Many U.S. businessmen automatically 
 conclude that U.S. prices preclude them 
 from doing business in Hong Kong. Noth- 
 ing could be further from the truth. Hong 
 Kong buyers recognize that quality, prod- 
 uct life and service may be as important 
 a part of the total picture as price. U.S. 
 goods also carry a certain status symbol 
 that should not be disregarded. Any na- 
 tion doing 21 billion dollars annually in 
 exports (the U.S. does it) has not been 
 priced out of the market. In the U.S. 
 we would call thjs competitors 'propa- 
 ganda'. It is not less here. Hong Kong 
 offers a challenge to the American busi- 
 nessman. The rewards are directly re- 
 lated to the effort. 
 
 Missionaries 
 
 Sell Your Products Through U.S. 
 Trade Missions Overseas, a 16- 
 page booklet published by the 
 Bureau of International Commerce, 
 gives a thumbnail description of 
 the purpose and operation of the 
 Trade Mission Program. It includes 
 several examples of U.S. firms 
 which have made substantial over- 
 seas sales through the program. 
 
 Copies are available for 15 
 cents apiece from the Superinten- 
 dent of Documents, U.S. Govern- 
 ment Printing Office, Washington, 
 D.C. 20402. 
 
 11 
 
BACKGROUND: Selling and investing in Hong Kong 
 
 Remarkable ability to consume 
 imports attributed to Hong Kong 
 market by U.S. Consulate General 
 
 H. C. CHAMPEAU 
 
 By HAROLD C. CHAMPEAU 
 
 U.S. Commercial Officer, Hong Kong 
 
 Hong Kong as an entrepot is well 
 known throughout the world. Its ability 
 to produce an increasing variety of con- 
 imer goods from 
 > rapidly expand- 
 ing industrial plant 
 becoming daily 
 more apparent in 
 the market places 
 of the world. 
 
 What is less well 
 known about Hong 
 Kong, however, is 
 its considerable 
 market potential. Its ability to consume 
 imports is remarkable: Hong Kong in 
 1962 imported US$1.16 billion worth 
 of goods while exporting only half that 
 much. In the first 9 months of 1963 Hong 
 Kong had imported US$936.8 million 
 worth of goods, 9.4% above imports 
 for the same period of 1962, in an ap- 
 parently sustained upward consumption 
 trend. Just this year there have been 
 indications that more countries are "dis- 
 covering" Hong Kong as a market and 
 are initiating or accelerating their pro- 
 motional efforts in the Colony. 
 
 Although the United States has been 
 Hong Kong's leading customer over re- 
 cent years, it has played a much less im- 
 portant role in selling to Hong Kong. 
 This is understandable in part in that 
 Communist China provides a large share 
 of the food consumed in Hong Kong and 
 is traditionally Hong Kong's leading sup- 
 plier. Less understandable, however, is 
 the fact that the U.S. position in the 
 Hong Kong market has slipped, both 
 relatively and absolutely, over the past 
 2 years and prospects for a reversal of 
 that trend are not yet apparent. 
 
 The U.S. share of the Hong Kong 
 market in 1962 fell from 12.2 to 11.9% 
 although it maintained third place, be- 
 hind Communist China and Japan. In the 
 first 9 months of 1963 the United States 
 had slipped to fourth place behind the 
 United Kingdom, its exports had fallen 
 
 Mr. Champeau, in Hong Kong 
 since April 1962, was a language 
 trainee in Taipei in 1954 and later 
 held posts in Taichung and Pan- 
 ama. Mr. Champeau graduated 
 from Clark University, and has a 
 Master's degree from Northwestern. 
 He also did graduate work at Mary- 
 land, Cornell, and Michigan. 
 
 by US$10 million, or 8.5%, compared 
 with the first 9 months of 1962, and its 
 share of market was down to 10.6%. 
 
 In the meantime, Japan, the United 
 Kingdom, and Australia, in particular, 
 were progressing significantly in increas- 
 ing their shares of the lucrative Hong 
 Kong market. Many countries, including 
 several from the Sino-Soviet bloc, sent 
 trade missions and trade specialists to 
 Hong Kong this year for the first time. 
 
 The fall-off in exports of raw cotton 
 was a shocking 49%. Pakistan and Tan- 
 ganyika have benefited from overpriced 
 
 HONG KONG'S IMPORTS 
 IN MAJOR COMMODITY GROUPS 
 
 Mineral fuels, lubri- 
 cants, related materials 
 $ 41.2 
 
 Miscellaneous Manu- 
 factured Articles 
 
U.S. cotton while Communist China, Ja- 
 pan, South Africa, and Australia are 
 providing increasing quantities of fresh 
 fruit. There is a marked preference for 
 U.S. fruits and soybean oil, and resistance 
 to American frozen poultry is slowly 
 weakening. These and other agricultural 
 products should be promoted because 
 the market is growing and preference 
 has been established. 
 
 Potential for machines 
 
 In the machinery market there is a 
 growing awareness among many factory 
 owners that although U.S.-made machines 
 may cost more than their Japanese or 
 European counterparts, they are more 
 
 durable and dependable, and cheaper in 
 the long run. This is especially true of 
 high-quality textile machines. Hong 
 Kong's industrial sector is growing rap- 
 idly, it is diversifying, and it is modern- 
 izing through increased automation to 
 improve efficiency, improve quality and 
 standardization, and reduce labor costs 
 which are currently rising. 
 
 There are excellent possibilities to re- 
 place old machines, to sell new machines 
 to the newer growth industries such as 
 plastics and electronics, and new indus- 
 tries will be established as Hong Kong 
 concentrates on the manufacture of new 
 products with increasing support and 
 direction from the Hong Kong Govern- 
 
 HONG KONG'S TOTAL IMPORTS 
 AND IMPORTS FROM THE U.S. 
 1958 -JUNE 1963 
 
 1,500- 
 
 1,000- 
 
 Total Imports 
 
 Imports from US $1,165.1 
 
 $1,026.1 $1,044.8 
 
 $804.0 
 
 $866.1 
 
 500- 
 
 
 $ 624.2 
 
 
 1958 1959 1960 1961 1962 Jan -"^ ne 
 
 ment and the major industrial associa- 
 tions. 
 
 Americans should be selling much 
 more and assisting actively in the plan- 
 ning of new industries so that U.S. ma- 
 chinery and know-how can be brought 
 in. There is a receptive climate for li- 
 censing and joint venture arrangements, 
 even more so with Hong Kong's increas- 
 ing concentration on improving quality 
 and standardizing products for greater 
 acceptance in the more sophisticated 
 markets of the United States and Western 
 Europe. 
 
 Japan, West Germany, and the United 
 Kingdom are active in the sale of ma- 
 chinery to Hong Kong manufacturers 
 and U.S. firms will have to meet the 
 competitive offers of favorable credit 
 terms, installing, servicing, and training 
 of workers. It is considered by many 
 Hong Kong industrialists far more de- 
 sirable to send people to the United 
 States for training than to have U.S. 
 experts remain for long periods in Hong 
 Kong. 
 
 There are other opportunities for the 
 sale of American products in Hong Kong. 
 Chemicals offer good possibilities, es- 
 pecially in the plastics and textile in- 
 dustries. U.S. chemicals already widely 
 used include vinyl polyethylene and 
 polyester, detergents, bleaching chemi- 
 cals, and ingredients for paints. These 
 markets can be expanded with greater 
 effort. 
 
 Among luxury consumer items there is 
 a good market for quality clothing in 
 styles currently popular in the United 
 States. Quality foodstuffs including frozen 
 foods as well as canned goods are always 
 in demand. Cosmetics and the latest in 
 pharmaceuticals are also sought by an 
 increasingly larger sector of Hong Kong's 
 population whose purchasing power is 
 growing. 
 
 Basic construction materials 
 
 One of the sectors of the Hong Kong 
 market which appears to have been little 
 exploited by Americans is the construc- 
 tion sector. The pace of new construction 
 must be seen to be believed. The entire 
 face of Hong Kong is undergoing change 
 as multistoried apartment houses and 
 office buildings, most 20 stories or higher, 
 are being built throughout the main sec- 
 tions of Hong Kong and Kowloon. In 
 1962, new buildings valued at US$61 
 million were completed. 
 
 Opportunities for U.S. firms lie not 
 so much in the sale of basic materials, 
 such as structural steel, cement, or bricks 
 which are produced locally or purchased 
 nearby, as in the sale of external and 
 internal equipment and quality materials. 
 
 13 
 
For example, aluminum windows and 
 doors and their frames, plumbing fixtures, 
 doorknobs, locks and other building hard- 
 ware, high-speed elevators, air-condition- 
 ing units of all sizes, flooring and other 
 surfacing, paints, expensive fabrics, kit- 
 chen equipment and all the other equip- 
 ment needed in modern buildings could 
 be sold in Hong Kong by aggressive U.S. 
 firms. 
 
 Harder push needed 
 
 There appears to be insufficient effort 
 by U.S. firms to exploit this highly prom- 
 ising market. About a month ago a 
 group of Australian manufacturers of 
 construction materials and equipment 
 visited Hong Kong and held an exhibit 
 at the Hong Kong Hilton Hotel. Intense 
 interest was shown in that mission and 
 its exhibit and it is believed that the 
 Australian building materials industry 
 will benefit considerably as a result. An 
 American effort on a much more com- 
 prehensive scale could and should be 
 made at the earliest possible time. 
 
 Several points should be emphasized 
 which seem increasingly critical in inter- 
 national competition — among them price, 
 credit, services, freight rates, and agency 
 representation 
 
 Prices, credit, service 
 
 Prices of many U.S. goods are often 
 high, but usually justified by high quality. 
 Wherever possible, however, U.S. firms 
 should offer prices as competitive as 
 possible. Credit, as- has been widely re- 
 ported by many posts, is a sales feature 
 of increasing importance. American firms 
 tend toward cash sales or short-term 
 credit, if any. They are faced with softer 
 terms offered by other countries which, 
 especially with small buyers, will mean 
 the loss of sales by U.S. firms. 
 
 American firms frequently offer quite 
 satisfactory service, but the trend is 
 toward more service and the service ar- 
 rangement may make the difference in 
 sales or loss of sales when other factors 
 are fairly equitable. 
 
 Freight rates have tended to discrimi- 
 nate against outgoing American cargoes 
 and to favor goods imported from other 
 supplying countries. A practice which 
 unfavorably affects American exports at 
 a time when export promotion is a top 
 policy consideration should be closely 
 examined. 
 
 Agency representation 
 
 Many U.S. firms are well represented 
 in Hong Kong and have been for years. 
 Others have decided to open branches 
 and bring out U.S. officers as business 
 opportunities develop, if essential to meet 
 
 growing competition. Some U.S. firms 
 are not getting the product promotion 
 they need, whether knowingly or un- 
 knowingly. These firms are at a serious 
 disadvantage in the highly competitive 
 Hong Kong market. 
 
 All U.S. firms should periodically ex- 
 amine the performance of their Hong 
 
 Kong agents. One problem in Hong Kong 
 is the old established firm with several 
 score of firms represented. Some of these 
 firms have spread themselves too thin 
 and are unable to do justice to more than 
 a few of their most lucrative lines. Other, 
 smaller agents are not adequately repre- 
 senting their U.S. clients. 
 
 Market profile-Hong Kong 
 
 Area: Hong Kong, British Crown Colony in Southeast Asia, has an area of 
 39814 square miles. 
 
 Population: 3.5 million (June 1963), including about 50,000 non-Chinese. 
 
 Language: Chinese dialects are ordinarily spoken, but English is the official 
 language, and is spoken to some extent by most businessmen. 
 
 Currency: Hong Kong dollar, tied to sterling. Highly stable and freely con- 
 vertible. HK$5.714=US$1. Average open market rate was HK$5.762 per 
 US$1 in June 1963. 
 
 Motor vehicles: Registration June 30, 1963, totaled 67,967, of which 42,677 
 were private cars, 11,951 trucks, and 5,544 motorcycles. Only right-hand- , 
 drive vehicles can be licensed permanently. 
 
 Radio-television: 1961 estimate of radio sets in use, 300,000. About 17,000 
 subscribers to the wired television (rediffusion) service, and about 50,000 
 radio rediffusjon speakers. Plans approved for commercial wireless tele- 
 vision systeoi, to operate on a 625-line system utilizing channels in Band 
 IV. 
 
 Electricity: Gross consumption in 1962, 1,538 million kilowatt-hours. Charac- 
 teristics: 50 cycles, alternating current. Industrial: 346 volts, 3 phase, 4 
 wire system. Commercial and domestic: 200 volts, single or 3 phase. Elec- 
 trical supplies must conform to British Standard Specification (BSS). 
 
 Gas: Gas is available to domestic, commercial, and industrial consumers. Sold 
 in therms (1 thermal 00,000 British thermal units). Liquefied petroleum 
 gas (LPG, or bottled gas) is also available. 
 
 Economy: Light industrial. Totally dependent on foreign trade as source of raw 
 materials and food, and as market for domestic manufacturers. 
 
 Trade controls: Virtually nonexistent. Minimal duties on five commodity cate- 
 gories; import licensing for certain goods regarded as strategic, dangerous 
 to public health or safety, or otherwise specially restricted (for example, 
 diamonds and gold). 
 
 Foreign trade (in millions of US$): 
 
 Total imports 
 Total exports 
 Imports from U.S. 
 Exports to U.S. 
 
 7960 
 $1,026.1 
 689.1 
 1 26.0 
 133.6 
 
 7961 
 $1,044.8 
 687.8 
 127.6 
 122.7 
 
 7962 
 $1,165.1 
 767.8 
 1 38.6 
 158.8 
 
 $624.2 
 4^5.5 
 66.4 
 84.5 
 
 Highest per capita importer (US$40 in 1962) of U.S. goods in Asia. 
 
 Principal trading partners: United States, U.K., Mainland China, Japan. 
 
 Principal imports: Textile yarn, fabric, made-up articles; textile fibers (pri- 
 marily raw cotton); cereals and cereal preparations; silver, platinum, 
 gems; and jewelry; transport equipment; mineral fuels and lubricants; elec- 
 trical machinery and appliances; miscellaneous foodstuffs. 
 
 Principal imports from U.S.: Raw cotton; tobacco and tobacco manufactures; 
 soybean oil; medicinal and pharmaceutical products; foodstuffs; diamonds; 
 miscellaneous manufactured articles; textile yarn, fabric and high-quality 
 made-up articles. 
 
 Principal exports: Clothing; textile yam, fabric, and made-up articles; plastic 
 flowers and toys; footwear; metal manufactures; electrical machinery and 
 apparatus. 
 
 Principal exports to U.S.: Clothing; textile fabrics; miscellaneous manufac- 
 tured articles; electrical machinery, apparatus, and appliances; furniture 
 and fixtures; silver, platinum, gems, and jewelry; metal manufactures. 
 
 14 
 
Hong Kong looks for quality, 
 style in goods it imports 
 
 Exporters find price, delivery speed also important; 
 investment climate good in this British crown colony 
 Q & A 
 
 What are the principal competitive 
 factors in the Hong Kong market? 
 
 Principal competitive factors in the 
 Hong Kong Market are price, delivery 
 speed, sales and payment terms, as well 
 as quality, style and reputation. 
 
 What are the usual quotations and 
 payment terms? 
 
 Sales quotation are usually given c.i.f. 
 (Hong Kong) or c. & f. (Hong Kong). 
 Most importers prefer not to be given 
 f.o.b. or f.a.s. quotations. Thus, the sup- 
 plier normally arranges for shipping and 
 insuring the merchandise. Quotations by 
 U.S. exporters are usually in US$. 
 
 All common payment methods are 
 used, with draft, letter of credit, and 
 acceptance predominating. Consignment 
 and open account shipments are rarely 
 used. 
 
 Are credit facilities available to finance 
 trade with Hong Kong? 
 
 Most Hong Kong banks are authorized 
 to deal in foreign exchange and have 
 long experience in financing imports and 
 exports. Short and medium term and, 
 in some cases, longer term financing of 
 trade is readily obtainable from local 
 banks at reasonable rates. 
 
 In addition, export credit as well as 
 export insurance are available from the 
 Export Import Bank and the Foreign 
 Credit Insurance Association (FCIA). 
 
 What marketing channels are available 
 in Hong Kong? 
 
 As a traditional trading community, 
 Hong Kong abounds in firms with long 
 experience in the import and distribution 
 of foreign products. 
 
 Among the many channels available 
 and most commonly used are direct 
 branches — branch office, subsidiary, 
 regional representative; intermediary 
 establishments — agency, distributor, fran- 
 chise holder, importer; direct buyers — 
 retailer, manufacturer, large private con- 
 cern, Government. 
 
 Indent orders are employed only 
 rarely. 
 
 ■cial facilities adequate? 
 Hong Kong has excellent and plentiful 
 shipping, banking, insurance, warehous- 
 ing, telecommunications and transporta- 
 tion facilities. The Colony's compact size 
 and the accessibility of its facilities permit 
 efficiency of operation and distribution, 
 as well as savings of time and money. 
 
 What is the present extent of American 
 investment in Hong Kong? 
 
 The Hong Kong Government does not 
 compile foreign investment data. The ex- 
 tent of total U.S. investment in the 
 Colony is estimated at over $70 million, 
 including such fields as aviation, shipping, 
 banking, stockbroking, insurance, hotels, 
 tourism, manufacturing, and sales and 
 distribution of all kinds of commodities. 
 
 Would the Colony be a safe, profitable 
 area for foreign investment? 
 
 Hong Kong possesses most attributes 
 of economic stability and free enterprise 
 usually sought by investors, including 
 honest, stable and efficient government; 
 stable and freely convertible currency; 
 freedom from threat of expropriation or 
 nationalization; nondiscriminatory treat- 
 ment of businesses; productive, inexpen- 
 sive local labor; and ready access to 
 Asian markets. 
 
 Joint ventures and licensing arrange- 
 ments are especially encouraged. There 
 is no requirement to employ local labor. 
 There are no restrictions on remittance of 
 profits or repatriation of capital. Corpo- 
 rate income taxes are particularly low 
 (12Vi percent). 
 
 Does the United States "offer invest- 
 ment guaranties in Hong Kong? 
 
 U.S. investment guaranties avail- 
 able on investments in various under- 
 developed counties are not yet applicable 
 to Hong Kong, but are under considera- 
 tion by AID. Most investors agree that 
 the Colony's stable and prosperous econo- 
 my is in itself sufficient insurance against 
 extraordinary business risks. Investors 
 wishing to insure against such risks would 
 have to utilize private insurance facilities. 
 
 LUGGAGE: Skilled workmen, like this luggage factoi 
 
Exports to Hong Kong climb; 
 U.S. share up 80%, '58 to '62 
 
 Growing market for wide range of goods reported; 
 High financial rating and free port facilities cited 
 
 maintains substantial current information 
 on the Hong Kong market. 
 
 Interested businessmen may also con- 
 tact the Hong Kong Department of Com- 
 merce and Industry, which has detailed 
 information on matters affecting the 
 colony's business climate. 
 
 Hong Kong is a large and growing 
 market for a wide range of goods. Total 
 imports, valued at $1.2 billion in 1962, 
 have increased by more than 45 percent 
 since 1958; imports from the U.S. have 
 risen by more than 80 percent in the same 
 period, to $139 million in 1962. The 
 colony ranks as our sixth largest cus- 
 tomer in Asia. 
 
 Hong Kong has only limited natural 
 resources. With few exceptions, it must 
 import its food, raw materials, consumer 
 manufactures, and fuel to support its 
 growing population and its active indus- 
 try. However, plentiful and modern 
 shipping, banking, insurance, telecom- 
 munications and transportation facilities 
 more than offset this dearth of indigenous 
 resurces. 
 
 Moreover, Hong Kong's compact size 
 (39814 square miles) and the accessibil- 
 ity of its facilities permit greater effi- 
 ciency of operation and savings of time 
 and money than is the case in other coun- 
 tries similarly endowed. 
 
 Fiscal rating A-l 
 
 Hong Kong's reputation for fiscal re- 
 sponsibility is unmatched in Asia. Taxes, 
 particularly on business, are low and have 
 remained virtually unchanged since 1950. 
 Substantial budget surpluses have been 
 realized consistently in recent years. 
 
 Public debt is negligible. 
 
 All the usual forms of business or- 
 ganization, including individual pro- 
 prietorships, partnerships, corporations, 
 branch offices and associations, are found 
 in Hong Kong. Establishing an office 
 presents no legal difficulties, and foreign 
 investors are always welcome to set up 
 operations on equal terms with local 
 enterprise. 
 
 Local labor supply 
 
 Local labor is industrious, intelligent, 
 thrifty, and remarkably adaptable to al- 
 most any kind of industrial operation. 
 Wages are relatively low, although numer- 
 ous fringe benefits are generally provided 
 in major industries. Labor-management 
 relations are good. 
 
 In the early 1950's, Hong Kong began 
 to change its economy from its tradi- 
 
 tional entrepot base to an industrial net- 
 work capable of manufacturing a va- 
 riety of products for export. 
 
 The bulk of local industry, excepting 
 shipbuilding and shipbreaking, is light. A 
 considerable effort to diversify industry 
 from too-heavy reliance on textiles has 
 been underway since 1960. 
 New industries 
 
 Highly successful industries, introduced 
 within the last few years, often with the 
 help of private foreign capital, include 
 plastic flowers, transistor radios, toys and 
 dolls, air conditioners, furnishings, elec- 
 tric fans, pleasure craft, and cameras. 
 Other well-established industries include 
 textiles, cement, aircraft engineering, 
 electric batteries and flashlights, enamel- 
 ware, footwear, wood and rattan prod- 
 ucts, and light metal manufactures of all 
 kinds. 
 
 Hong Kong's free port facilities com- 
 bined with reasonable taxes and freely 
 convertible currency constitute important 
 attractions for foreign investment. U.S. 
 industrial and commercial investment in 
 the colony has experienced an upsurge in 
 recent years. 
 For more data 
 
 The U.S. Department of Commence 
 
 China Trade Act confers special 
 benefits on Hong Kong investor 
 
 Law gives U.S. firms tax break on profits earned in Taiwan, Hong Kong; 
 act is aimed at creating markets for goods produced in United States 
 
 The China Trade Act of 1922, 
 
 amended, authorizing the creation of 
 corporations to engage in business within 
 the China area (now limited to Hong 
 Kong and Taiwan), offers unusual bene- 
 fits to the prospective investor. 
 
 Companies chartered under the act by 
 the U.S. Department of Commerce are 
 entitled to relief, usually full exemption, 
 from Federal income taxation on corpo- 
 rate profits. Dividends received by stock- 
 holders residing in Hong Kong and 
 Taiwan are also exempted from U.S. in- 
 dividual income tax. 
 
 The purpose of the act is to develop 
 markets for goods produced in the United 
 
 States. Joint enterprises are encouraged. 
 
 Incorporation under the act is not 
 limited to trading firms; and the Depart- 
 ment of Commerce is prepared to con- 
 sider applications for a wide range of 
 commercial and industrial enterprises in- 
 volving substantial use of American raw 
 materials and capital equipment. 
 
 Three or more incorporators, a 
 majority being U.S. citizens, may form a 
 China Trade Act corporation by comply- 
 ing with certain procedures established 
 by the U.S. Department of Commerce. 
 
 Communications regarding the act 
 should be addressed to the Acting Regis- 
 trar, China Trade Act, U.S. Department 
 of Commerce, Washington, D.C. 20230. 
 
 16 
 
Hong Kong's godowns offer ample 
 warehouse, cold storage space 
 
 Colony has more than 1 00 warehouses; capacity tops 1 ,000,000 tons, 
 including open and closed storage, in public and private facilities 
 
 Hong Kong offers a substantial amount 
 of storage space, both public and private, 
 including open and closed space and cold 
 storage. 
 
 Closed storage space includes four 
 Government-regulated godowns (ware- 
 houses) approved for import and export 
 purposes. Goods of high strategic signifi- 
 cance which have been licensed for im- 
 port to be reexported to approved 
 destinations must be stored in these Gov- 
 ernment-supervised godowns. 
 
 Up-to-date 
 
 There are also more than 100 other 
 warehouses, many of them modern and 
 efficient, which provide ample storage 
 facilities for the varied types of goods 
 which enter Hong Kong. 
 
 The cold storage facilities of the colony 
 can accommodate in controlled tempera- 
 tures nearly 28,000 tons deadweight of 
 foodstuffs. Facilities are available for 
 goods registering temperatures between 
 0° F. and 60° F. Air-conditioned space 
 is obtainable for commodities liable to 
 deterioration in local climatic conditions. 
 
 Total storage capacity of Hong Kong's 
 warehouses is well over one million 
 measurement tons. 
 
 Warehouses are equipped to store 
 valuable cargo, chemicals, high explosives 
 
 Import duties 
 
 The policy of the Hong Kong Govern- 
 ment is to interfere as little as possible 
 with the Colony's trade and industry. 
 There is no general tariff, and for nearly 
 all goods, Hong Kong remains a free port 
 in respect of duties levied for protection 
 or revenue purposes. 
 
 On importation, dutiable goods must 
 be stored either in a bonded warehouse 
 belonging to the importer until duty has 
 been paid or the goods reexported. 
 
 Overside delivery 
 
 Overside delivery is allowed in certain 
 circumstances, after payment of duty, but 
 when goods are delivered in this manner, 
 no claims are allowed for refunds of duty 
 on shortages or breakages. 
 
 Dutiable goods may not be moved 
 within the Colony without a permit, but 
 
 no taxes are levied on the movements 
 within Hong Kong of otherwise non- 
 dutible goods. 
 
 Wharf services 
 
 Wharf services vary with the company 
 and may be a matter for negotiation. The 
 four largest godowns operate under a 
 published tariff which covers all opera- 
 tions connected with the handling of ves- 
 sels and cargo. 
 
 Landing charges include receiving, 
 sorting, stacking, seven days' free storage, 
 and delivery to door of transit shed, and 
 are payable by the consignee. 
 
 The charges may vary according to the 
 commodity involved. 
 
 Hong Kong rules permit investors to 
 take out profits, repatriate capital 
 
 Colony puts out welcome mat for investors; enables them to take home 
 dividends, protect capital against adverse changes in exchange rates 
 
 If the investor in Hong Kong so elects, 
 there need be no restrictions on the entry 
 and repatriation of investment capital or 
 on the conversion and remittance of 
 profits and dividends arising from direct 
 investment in local enterprise. 
 
 Remitting profits 
 
 When capital for investment has en- 
 tered the Colony through the open U.S. 
 dollar market, remittance of profits and 
 dividends and repatriation of capital to 
 the U.S. dollar area is effected through 
 that market by the mere purchase of U.S. 
 dollar instruments with Hong Kong 
 dollars. 
 
 This method of operation may be at- 
 tractive to investors perferring greater 
 mobility of capital and who are willing to 
 
 Chinese labels help sell goods in 
 sophisticated Hong Kong market 
 
 Crown colony admits most imports duty-free; it offers good potential 
 for antibiotics, poultry, paper board, other U.S. exports 
 
 In labeling finished products for export 
 to and consumption in Hong Kong, the 
 inclusion in Chinese characters of a de- 
 scription of the goods or instructions 
 necessary for their use will ordinarily re- 
 sult in increased sales appeal. 
 
 Chinese labels must be discriminatingly 
 applied, since they can create the impres- 
 sion that the goods are of local manu- 
 facture, thereby attracting a lower selling might prove disastrous to sali 
 price. 
 
 The taste of the Chinese in Hong Kong 
 as far as Western products are concerned 
 has been largely formed by the influx of 
 American goods, and as a rule, presenta- 
 tion designed for the American market is 
 suitable also for Hong Kong. 
 
 accept the risk of possible adverse fluctua- 
 tions in the U.S.-H.K. dollar exchange 
 rate. 
 
 If the investor in Hong Kong desires 
 to protect himself against adverse changes 
 in the price of the U.S. dollar, he should 
 register his investment with the Hong 
 Kong Exchange Control and provide 
 periodic audited balance sheets. 
 
 Insuring capital 
 
 Under this procedure, the U.S. in- 
 vestor is obliged to obtain his H.K. dol- 
 lars with U.S. dollars at the official ex- 
 change rate, but likewise he has taken 
 the precautions which will enable him to 
 repatriate his capital and earnings at the 
 official rate. 
 
 However, salability of consumer goods 
 is easily influenced adversely by Chinese 
 customs, beliefs and predilections, of 
 which careful study should be made. 
 
 Color is a particularly significant mar- 
 keting factor; red, gold and certain 
 shades of green are usually very well re- 
 ceived, whereas some shades of blue are 
 associated with funeral ceremonies and 
 
 Seek Local Advice 
 
 The advice of Hong Kong importers 
 should be sought regarding labels and 
 marks, and requests for changes either in 
 color or design should receive sympa- 
 theic consideration. 
 
 17 
 
Overseas traders, listed below, want to do business with American firms. 
 Commodities they wish to buy or sell are identified by description and by 
 Standard Industrial Classification (SIC) Manual number. 
 
 Other symbols used: 
 
 * — Additional information on the trade opportunity may be obtained by 
 writing Commodity Export Promotion Staff, BDSA-111, Department of 
 Commerce, Washington, D.C., 20230. 
 
 NCIA — No commercial information available on the overseas firm. 
 
 WTD — World Trade Directory report available. WTD reports give a de- 
 scription of the firm, its sales territory, size of business, sales volume, 
 trade and financial reputation and other data. Copies can be bought 
 for $1 each from the Commercial Intelligence Division, Bureau of Inter- 
 national Commerce, U.S. Department of Commerce, Washington, D.C., 
 20230. Numbers following the WTD symbol show the date the report 
 was issued. 
 
 I.R. — Interview Report, identified by following number, is available on 
 the trader. These reports are compiled by the Trade Mission. Copies 
 can be obtained from Trade Mission Division, Bureau of International 
 Commerce, U.S. Department of Commerce, Washington, D.C., 20230. 
 
 Leads for 
 Exporters 
 
 013 Livestock Farms 
 
 Wholesaler of animal feed, chicken breed- 
 ing seeks distributorship of poultry breeding 
 stock. Luang Kiu Co., Ltd. (433084), 95 Des 
 Voeux Rd., W., 1st Floor. NCIA. I.R. 123.* 
 
 200 Food 
 
 Frozen foods, canned goods, soya bean oil, 
 oranges, other produce desired from U.S. 
 firms. Far East Commodities & Trading Co., 
 Ltd., 3rd Floor, St. Georges Bldg., Chater Rd. 
 WTD 6/28/63. I.R. 30. 
 
 201 Meat Products 
 
 Direct import of U.S. frozen chickens, parts, 
 including neck, wings, large quantities de- 
 sired. Far Eastern Cotton Co. (H.K.) Ltd., 
 Rm. 610, Tak Shing House. NCIA. I.R. 66. 
 
 203 Canning and Preserving of 
 Fruits, Vegetables, and 
 Sea Foods 
 
 Distributing Agent desires U.S. sources for 
 dehydrated milk products, dehydrated vegeta- 
 bles, concentrated foods. Far Eastern Cotton 
 Co. (H.K.) Ltd., Rm. 610, Tak Shing House. 
 NCIA. I.R. 67. 
 
 Importer/wholesaler seeks distributorship 
 for U.S. line of dehydrated milk products, 
 dehydrated vegetables, concentrated foods. 
 Luang Kiu Co., Ltd., 95 Des Voeux Rd., W., 
 1st Floor. NCIA. I.R. 126.* 
 
 204 Grain Products 
 
 General merchant seeks U.S. supplier of 
 rice for approx. 200,000 tons per year in next 
 5 years. Hilton Ltd., 43A Telok Ayer St., 
 Singapore. NCIA. I.R. 186. 
 
 220 Textile Mill Products 
 
 Textile importer seeks stretchable materials 
 for swimsuits; cotton prints for women; da- 
 cron suiting for men; silk, rayon lining (in- 
 cluding job lots) ; dyed drill with mercerized 
 finish; drapery, upholstery material, other syn- 
 thetic yardgoods on exclusive agency basis. 
 Also wants men's socks, women's hosiery. B.D. 
 Tata & Co. Ltd., Kayamally Bldg., Rm. 6, 2nd 
 Floor. NCIA. I.R. 46.* 
 
 Textile importer seeks direct import of all 
 types of fabrics: cottons, silks, all varieties 
 of synthetic materials. Yae Seng Hong Co., 
 Ltd., 236 Des Voeux Rd. Central, 2nd Floor. 
 WTD 11/9/60. I.R. 41.* 
 
 228 Yarn, Thread Mills, Products 
 
 Manufacturer of woole 
 mohair from the U.S. Man Kee Woolen Gar- 
 ments Mfr. Ltd., 273 Un Chau St., 12th Floor, 
 Kowloon. NCIA. I.R. 158. 
 
 229 Textile Goods 
 
 Importer wants textile waste materials. Chip 
 Seng Co., Ltd., 53 Des Voeux Rd., W., 1st 
 Floor, Hong Kong. NCIA. I.R. 135. 
 
 Direct import of curtain, drapery materials 
 desired. Dragon Co., 124-125 Gloucester Rd. 
 WTD 6/28/61. I.R. 59.* 
 
 259 Furniture, Fixtures 
 
 Manufacturer/importer of Venetian blinds, 
 curtain & drapery hardware, seeks to supple- 
 ment his line with goods from the U.S. Dragon 
 Co., 124-125 Gloucester Rd. WTD 6/28/61. 
 I.R. 59.* 
 
 264 Converted Paper, Paperboard 
 Products 
 
 Direct import of stationery desired by sta- 
 tionery and paper importer. Swire & McClaine 
 Ltd., Paper Dept., 9 Connaught Rd. Central. 
 WTD 8/22/62. I.R. 97.* 
 
 270 Printing, Publishing Industries 
 
 Teacher wishes to represent U.S. publishers, 
 manufacturers of teaching aids, other educa- 
 tional items; specifically, high quality books, 
 
 281 Industrial Chemicals 
 
 Importer/wholesaler wants plasticizers such 
 as D.O.P. and D.I.O.P. Also spray dry de- 
 tergent powder (in bulk) for laundry pur- 
 poses. Unoco Ltd., 408-9 Takshing House. 
 NCIA. I.R. 10.* 
 
 Importer wants miscellaneous chemicals used 
 in textile manufacturing such as: fluorescent 
 agents for cotton, wool, polyester, polyamide, 
 polyacrylic; detergent agents for vegetable, 
 animal, synthetic fibers; softening agents; 
 resin finishes. Yae Seng Hong, 236 Des Voeux 
 Rd., Central, 2nd Floor. WTD 11/9/61. I.R. 
 40.* 
 
 282 Synthetic Materials 
 
 Importer wishes to expand present line of 
 chemicals, materials for plastics industry. 
 Doyen Plastic Colourant Co., 303 Sincere 
 House, Kowloon. NCIA I.R. 182.* 
 
 Polypropylene, PVC powders for slush 
 moulding desired from manufacturers. Holland- 
 China Trading Co. Ltd., Alexandra House, 
 301-310. WTD 12/62. I.R. 18.* 
 
 283 Drugs 
 
 Interested in well-advertised proprietary 
 medicines as well as patented, cough medi- 
 cines. Gilman & Co. Ltd., Alexandra House, 
 9th Floor. WTD 9/14/62. I.R. 32. 
 
 Seeks representation of U.S. manufacturers 
 of animal and poultry pharmaceuticals and 
 biologic products. Luang Kiu Co., Ltd., 95 Des 
 Voeux Rd., W., 1st Floor. NCIA. I.R. 124.* 
 
 Manufacturer's representative seeks addi- 
 tional lines of pharmaceuticals, patent medi- 
 cines. Shriro China Ltd., 831 Alexandra House. 
 NCIA. I.R. 203.* 
 
 Importer wants ethical pharmaceutical spe- 
 cialties for distribution to hospitals, doctors. 
 Davie, Boag & Co., Ltd., (Chemical Section), 
 Jardine House. WTD 10/11/63. I.R. 43.* 
 
 Importer seeks miscellaneous U.S. drugs. 
 Bacon Jewelry Co., 31 Mody Rd., Kowloon. 
 NCIA. I.R. 39.* 
 
 Importer/wholesaler wants miscellaneous 
 veterinary pharmaceuticals, especially New 
 Castle disease vaccine, fowl pox vaccine, lary- 
 gotracheitis vaccine, typhoid vaccine, anti-hog 
 cholera vaccine, hog cholera serum. Unoco Ltd., 
 408-9 Takshing House. NCIA. I.R. 10.* 
 
 284 Soap, Detergents, Cleaning 
 Preparations, Perfumes, 
 Cosmetics 
 
 Importer/wholesaler seeks U.S. pharmaceut- 
 icals, cosmetics. Sapphire Trading Co., 222 
 Bank of Canton Bldg., 6 Des Voeux Rd., Cen- 
 tral. WTD 10/5/62. I.R. 138.* 
 
 Seeks agency for cosmetics, drug products. 
 Star Advertising & Decoration Service, 210 
 Queen's Rd. E. NCIA. I.R. 60.* 
 
 Importer/wholesaler seeks cleaning gum 
 used by manufacturers of woolen knitwear. 
 Faithful Trading Co., P.O. box 2480. NCIA. 
 I.R. 118. 
 
 Importer/distributor of beauty supplies seeks 
 direct imports from U.S. manufacturer of high- 
 quality net spray; hair conditioners, hot-wave 
 cream containing sodium sulphate. Tatley 
 Trading Co., 20 Homantin St., Kowloon. NCIA. 
 I.R. 120.* 
 
 291 Petroleum Refining 
 
 Candle manufacturer wants paraffin, waxes 
 of all grades direct from manufacturer. Far 
 
 18 
 
299 Products of Petroleum, Coal 
 
 Chemical importer desires from American 
 supplier paraffin wax 143-148 amps, 148-150 
 amps, 160-165 amps, packed in cartons 90-94 
 lbs. Needs 10,000 lbs. per month. 0. Kees & 
 Co. (H.K.) Ltd., 9 Ice House St., 8th Floor. 
 WTD 12/29/61. I.R. 85.* 
 
 331 Steel Mill Products 
 
 Importer wants U.S. machinery for setting 
 up iron melting plant and rolling mill to man- 
 ufacture reinforcing bar. Also wants U.S. 
 know-how. Sik Yuen Co., Ltd., Rm. 86 Jardine 
 House. NCIA. I.R. 130. 
 
 Importer seeks U.S. sources of tin plate 
 seconds or waste, 18" x 24" and larger, 108 lbs. 
 and heavier. Also wants black plate 48" x 24" 
 and larger, 14 to 28 gage. O. Kees & Co. 
 (H.K.) Ltd., 9 Ice House St., 8th Floor. WTD 
 12/29/61. I.R. 84.* 
 
 Importer/manufacturer seeks from U.S., 
 mill tin plate "seconds." Also wants 5,000 
 tons of black plate annually. Asia Raw Materi- 
 als Co., 84 Queen's Rd., Central. WTD 
 7/27/61. I.R. 54. 
 
 Importer wants stainless steel sheet rejects 
 from U.S. sources. East Asia Co., Great China 
 House, 3rd Floor. NCIA. I.R. 12.* 
 
 Importer desires miscellaneous metals from 
 U.S. sources; specifically, tinplate and culls; 
 black plate; cold rolled steel plate, all seconds. 
 East Asia Co., Great China House, 3rd Floor. 
 NCIA. I.R. II.* 
 
 Importer desires from U.S. sources plain 
 and gold lacquered tin plate. Also culls and 
 waste tin plate. General Commercial Corp. 
 Ltd., 1002 Union House, Chater Rd. WTD 
 12/2/59. I.R. 8. 
 
 336 Nonferrous Foundries 
 
 Large metals manufacturer wants aluminum 
 billets for the manufacture of finished archi- 
 tectural sections and other products. Hong 
 Kong Chiap Hua Mfg. Co., 902 Fung House, 
 20 Connaught Rd. Central. WTD 12/20/61. 
 I.R. 82.* 
 
 339 Primary Metal Industries 
 
 Metal importer seeks secondary tin-mill 
 products of all descriptions, specifically, soft 
 galvanized wire, low carbon wire, gold, steel 
 sheet rejects; hot-rolled and cold-rolled steel 
 sheet rejects. General Commercial Corp. Ltd., 
 1002 Union House, Chater Rd., WTD 12/2 
 59. I.R. 7.* 
 
 342 Cutlery, Hand Tools, General 
 Hardware 
 
 Importer seeks distributorship for U.S. line 
 of portable power tools and light machinery. 
 China Engineers Ltd., Alexandra House. WTD 
 11/20/62. I.R. 144. 
 
 Importer of industrial machines and parts 
 interested in hand-operated reinforcing steel 
 bar cutters, pipe bending and pipe threading 
 machines. Yukon Enterprises Ltd., 62 Electric 
 Rd. WTD 9/12/63. I.R. 57. 
 
 343 Heating Apparatus, Plumbing 
 Fixtures 
 
 Plumbing contractor seeks connections with 
 U.S. manufacturers of plumbing equipment 
 who can render technical assistance with multi- 
 story bldgs. Especially interested in sanitary 
 fittings, fixtures, all variety of plumbing fit- 
 
 tings including piping, valves, fittings and 
 power tools. General Engineering Co., Ltd., 
 Rm. 328 Caroline Mansion, 4 Yuen Ping Rd. 
 NCIA. I.R. 26.* 
 
 344 Fabricated Structural Metal 
 Products 
 
 Importer/wholesaler wants aluminum win- 
 
 350 Machinery 
 
 Importer desires U.S. machinery; specifi- 
 cally, air-conditioning for industrial and home 
 use, outboard motors, rope-making machinery. 
 A Dransfield & Co., Rm., 717 Alexandra 
 House. WTD 7/19/63. I.R. 31.* 
 
 351 Engines, Turbines 
 
 Importer seeks distributorship for line of 
 re-built diesel engines and parts. Wing & 
 Robert Export Corp., 503 On Lok Yuen Bldg., 
 Des Voeux Rd., Central. NCIA. I.R. 179. 
 
 354 Metalworking Machinery 
 
 Well drilling equipment needed by build- 
 ing contractor. General Engineering Co., Ltd., 
 Rm., 328 Caroline Mansion, 4 Yuen Ping Rd. 
 NCIA. I.R. 26.* 
 
 355 Special Industry Machinery 
 
 Manufacturer of bed sheeting wants U.S. 
 textile machinery; specifically, bleaching, dye- 
 ing, screen printing equipment. Pollux Bleach- 
 ing & Dyeing Works, Ltd., 203 Sai Yeung 
 Choi St., Kowloon. NCIA. I.R. 147.* 
 
 Large manufacturer/importer seeks injec- 
 tion mould machinery from U.S. sources for 
 manufacturing plastic shoe soles. Sik Yuen 
 Co., Ltd., Rm. 86 Jardine House. NCIA. I.R. 
 129. 
 
 Importer wants from U.S. sources pitch 
 bond reeds and metal reeds for textile indus- 
 try. Nan Fung Co., 6 Queens Rd., Central, 
 Kai Ming Bldg., Rm. 304. WTD 10/17/52. 
 I.R. 4. 
 
 Importer in the market for U.S. used textile 
 machinery, both machines and complete mill. 
 Nan Fung. Co., 6 Queens Rd., Central, Kai 
 Ming Bldg., Rm. 304. WTD 10/17/52. I.R. 
 3. 
 
 Manufacturer's representative interested in 
 establishing contacts with machinery manu- 
 facturers who can supply machinery and 
 parts for modern custom kiln drying facilities 
 for woods, with know-how to establish facili- 
 ties and initiate operations. Doyen Plastic 
 Colourant Co., 303 Sincere House, Kowloon. 
 NCIA. I.R. 182.* 
 
 Manufacturer of woolen knitwears wants 
 to buy U.S. textile machinery; specifically, 
 12-gage and 14-gage knitting machines; loop- 
 ers; washing, drying and ironing equipment 
 for textile knitting manufacture. Man Kee 
 Woolen Garments Mfr., Ltd., 273 Un Chau 
 St., 12th Floor, Kowloon. NCIA. I.R. 156. 
 
 Textile machinery importer seeks U.S. cloth- 
 cutting machines, power type. Nan Fung Co., 
 6 Queens Rd., Central, Kai Ming Bldg., Rm. 
 304. WTD 10/17/52. I.R. 2. 
 
 Hardware manufacturer wants prices, speci- 
 fication and delivery on new and used National 
 and Waterbury-Farrell Hypco type, long 
 stroke headers. Also wants standard and ro- 
 tary slotters, thread rollers. Golden Dragon 
 Metal Mfg. Co., 611 Central Bldg. NCIA. 
 I.R. 134. 
 
 Manufacturers' representative seeks repre- 
 
 3 f U.S. manufacturers of industrial 
 machinery and equipment, construction ma- 
 chinery, and consulting engineering firms. 
 Specifically for large scale water desaliniza- 
 tion project. Jackson and Jackson Co., GPO 
 15177. NCIV I.R. 146.* 
 
 Manufacturer of pharmaceuticals interested 
 in machinery for the production of drugs 
 (tablets, pills and capsules). Li Chung Shing 
 Tong, 33 Connaught Rd., Central, 2nd Floor. 
 NCIA. I.R. 154.* 
 
 356 General Industrial Machinery 
 
 Manufacturer/wholesaler of general indus- 
 trial machinery wants U.S. compressors for 
 air-conditioners, primarily for home use. Kwok 
 Hing Engineering & Electrical Mfg. Co., 105 
 How Ming St., Kwun Tong, Kowloon. NCIA. 
 I.R. 76.* 
 
 358 Service Industry Machines 
 
 Manufacturer and large wholesale/retailer 
 of ice cream urgently needs new modern re- 
 frigeration machinery for the production of 
 10,000 units of ice sticks or lollipops per hour. 
 Also in the market for new freezing units, 
 using compressed liquid nitrogen, for 10 Wi 
 ton vans. Wants quotations and suggestions 
 from U.S. refrigeration manufacturers. Finland 
 Ice Cream & Food Products Co., Ltd., 250-254 
 Hoi Fan St., Ground Floor, Kowloon. NCIA. 
 I.R. 167* 
 
 Automotive accessories importer wishes to 
 act as agent for U.S. manufacturers of auto- 
 mobile air-conditioning units. Shin Ta Luk 
 Import & Export Co., Rm. 54, Printing House. 
 WTD 5/15/63. I.R. 91* 
 
 Leading department store seeks distributor- 
 ship for coin-operated dry-cleaning machines. 
 Shui Hing Co., 134-136 Des Voeux Rd., Cen- 
 tral. WTD 6/14/63. I.R. 65.* 
 
 Air-conditioning package units; also large 
 units suitable for central installations for 
 handling by importer/agent. Holland-China 
 Trading Co. Ltd., Alexandra House, 301-310. 
 WTD 12/62. I.R. 18* 
 
 Importer/wholesaler seeks ironing machine, 
 electrically heated, used by woolen knitwear 
 manufacturers; also wants automatic pressers 
 for shirt manufacturers. Faithful Trading Co., 
 P.O. box 2480. NCIA. I.R. 118. 
 
 Importer/wholesaler seeks representation of 
 U.S. manufacturers of small commercial water 
 purification and treatment; specifically, water 
 purifier, water softener, automatic chlorinators. 
 Shewan, Tomes & Co., 14th Floor, Union 
 House, P.O. box 115. WTD 9/25/62. I.R. 100. 
 
 Importer wants U.S. line of air-conditioning 
 equipment for distribution. Barnett Sales 
 (H.K.) Co., 1106 Commercial House, Queen's 
 Rd. WTD 10/5/62. I.R. 21. 
 
 359 Machinery 
 
 Jewelry manufacturer wants grinding, pol- 
 ishing, cutting and drilling machinery. Wang 
 Sang Jeweller, 70 Queen's Rd. Central. NCIA. 
 I.R. 193. 
 
 363 Household Appliances 
 
 Importer seeks direct import of miscellan- 
 eous home appliances. A. Dransfield & Co., 
 Rm. 717 Alexandra House. WTD 7/19/63. 
 I.R. 31* 
 
 Large international trading firm wants con- 
 nections with U.S. manufacturers of electrical 
 appliances. Fehaco Ltd., United Chinese Bank 
 Bldg., 9th Floor, 31-37 Des Voeux Rd. Central. 
 WTD 10/22/63. I.R. 137* 
 
 19 
 
369 Electrical Machinery, 
 Equipment, Supplies 
 
 Importer desires controllers and eltctrical 
 controls from U.S. manufacturers. Barnett 
 Sales (H.K.) Ltd., 1106 Commercial House, 
 Queens Rd. WTD 10/5/62. I.R. 23. 
 
 371 Motor Vehicles, Motor Vehicle 
 Equipment 
 
 Manufacturers' representative/importer ur 
 gently wants information on automobile air- 
 conditioners, trailer and dash-board units. The 
 Sino-British Co., 43A Wyndham St., Ground 
 Floor. NCIA I.R. 88.* 
 
 Importer/wholesaler seeks direct import of 
 military surplus, specifically, motor cars and 
 spare parts. Chip Seng Co., Ltd., 53 Des Voeux 
 Rd., West, 1st Floor. NCIA. I.R. 135. 
 
 Importer of automotive equipment seeks 
 agency connections with manufacturers of 
 automobile air-conditioners (complete units). 
 Shin Ta Luk Import & Export Co., Rm. 54, 
 Printing House. WTD 5/15/63. I.R. 91.* 
 
 372 Aircraft, Parts 
 
 Importer desires to represent U.S. aircraft 
 manufacturer. Specific needs are: aircraft 
 parts, new and used aircraft engines. Also 
 wants helicopters. Asia Aircraft Parts Co., 
 Ltd., 93 Peninsula Court. NCIA. I.R. 127. 
 
 384 Surgical, Medical, Dental 
 Instruments 
 
 Importer/wholesaler wishes representation 
 of U.S. manufacturer of fire control and pub- 
 lic safety equipment. Shewan, Tomes & Co., 
 14th Floor, Union House, P.O. Box 115. WTD 
 9/25/62. I.R. 101. 
 
 Importer/wholesaler wants connections with 
 U.S. manufacturer of dry chemical fire equip- 
 ment for representation. Shewan, Tomes & 
 Co., 14th Floor, Union House, P.O. Box 115. 
 WTD 9/25/62. I.R. 99. 
 
 Wholesaler of hospital and medical equip- 
 ment seeks such equipment from U.S. manu- 
 facturers. Catalogues requested. Danby & 
 Hance, Ltd., 405 Edinburgh House. NCIA. 
 I.R. 153. 
 
 386 Photographic Equipment 
 
 Large international trading firm seeks con- 
 tacts with manufacturers of photographic 
 equipment and supplies. Fehaco Ltd., United 
 Chinese Bank Bldg., 9th Floor, 31-37 Des 
 Voeux Road Central. WTD 10/22/63. I.R. 
 137.* 
 
 391 Jewelry, Silverware, Plated 
 Ware 
 
 Jewelry manufacturer/importer seeks mis- 
 cellaneous rough stones for cutting, polishing 
 and setting. Also desires to sell finished 
 jewelry products. Bacon Jewelry Co., 31 Mody 
 Rd., Kowloon. NCIA. I.R. 39.* 
 
 399 Manufacturing Industries 
 
 Importer/wholesaler desires various con' 
 sumer items; specifically, cosmetics, mohair, 
 screen process printing presses, plastics. Of- 
 fers for export cigarette gas lighters. L. Fardel 
 Co., 803 Luk Hoi Tung Bldg. NCIA. I.R. 64> 
 
 Manufacturer of beaded handbags seeks 
 direct import of high quality frames for eve- 
 ning bags. Seeks New York agent to sell his 
 beaded evening handbags and coin purses in 
 U.S. Oriental Bead Arts Co., 1-C Marble Rd. 
 NCIA. I.R. 184. 
 
 vertising purposes. Wan Shing Co., 206A Hong 
 Kong & Shanghai Bank Bldg. WTD 10/29/62. 
 I.R. 102.* 
 
 Leads for 
 Importers 
 
 Manufacturer seeks U.S. agent to distribute 
 his full line of Chinese foods. The Amoy Can- 
 ning Corp. (H.K.) Ltd., NKIL 53 Ngau Chi 
 Wan. WTD 6/14/63. I.R. 159.* 
 
 203 Canning, Preserving Foods 
 
 Manufacturer of Palmetto shrimp slices 
 seeks U.S. agent. Palmetto Food Manufac- 
 turing Co., 23 Jervois St., 2nd Floor. NCIA. 
 I.R. 155.* 
 
 225 Knitting Mills, Products 
 
 Woolen knitwear manufacturer seeks U.S. 
 agent or importer to sell his plain, beaded and 
 embroidered sweaters and dresses for women, 
 children and men. Maxim Knitters Ltd., 650 
 Castle Peak Rd., Kowloon. NCIA. I.R. 170.* 
 
 Manufacturer of beaded dresses, silk fab- 
 rics, beaded sweaters seeks U.S. agent to dis- 
 tribute his high quality, hand-made sweaters, 
 custom-made dresses. Embroidery, sequins and 
 other ornaments used. Kao's Manufacturing 
 Corp., 27A Chatham Rd., 11th Floor, Kowloon. 
 WTD 2/26/63. I.R. 131.* 
 
 Large knitwear manufacturer will sell to 
 U.S. wholesalers, agents, retail chains com- 
 plete line of woolen knitwear for men and 
 women. Man Kee Woolen Garments Mfr. Ltd., 
 273 Un Chau St., 12th Floor, Kowloon. NCIA. 
 I.R. 157. 
 
 Large manufacturer of woolen knitwear de- 
 sires to make connections with wholesalers and 
 large chain stores to handle his line of women's 
 bulky and quality embroidered knitwear; also 
 men's knitted cardigans. Fergusson of Can- 
 ada Knitting Factory, Cheong Wah Factory 
 Big., 6th Floor, 39 Sheung Hung Rd., Kowloon. 
 NCIA. I.R. 117. 
 
 Has line of knitted wear; pullover sweaters, 
 cardigans, trimmed and plain, including cash- 
 meres and other blends. Hop Chong Co., 409 
 Central Bldg. WTD 1/4/62. I.R. 87.* 
 
 Manufacturer of knitwear seeks U.S. agents 
 and distributors for quality woolen knitwear 
 goods, including cashmere, mohair, plain and 
 decorated women's sweaters. Major Mercantile 
 Co., 8E Far East Mansion, Kowloon. NCIA. 
 I.R. 89.* 
 
 U.S. agent wanted to handle line of aprons, 
 towels, woolen sweaters and cardigans. Nan 
 Fung Co., 6 Queens Rd. Central, Kai Ming 
 Bldg., Rm. 304. WTD 10/17/52. I.R. 5. 
 
 Women's knitwear: sweaters, cardigans, and 
 others for export to U.S. Ying Kong Co. Ltd., 
 15-18 Connaught Rd., Rm. 1501, Grand Bldg. 
 WTD 11/6/62. I.R. 9.* 
 
 Seeks substantial connections with U.S. im- 
 porters-buyers for men's, women's sweaters, 
 synthetics and wools, beaded and decorated, 
 low and medium priced; also vinyl gloves 
 for adults and children. Beacon Corp. (H.K.) 
 
 230 Apparel 
 
 Custom-tailored men's and women's ready- 
 to-wear with accessories for distribution in 
 U.S. through agents or commission representa- 
 tives. Jamie C. Tsien & Co., Inc., Rm. 901-904 
 Regent House, 84-90 Queen's Rd. Central. 
 NCIA. I.R. 181.* 
 
 Can manufacture high quality sequined and 
 embroidered women's dresses and undergar- 
 ments to suit U.S. sizes and designs supplied 
 by customers. Desires New York import agent 
 for representation. Rosa Garment Manufactory 
 Ltd., 19 Beach St., 7th Floor, Kowloon. NCIA. 
 I.R. 56. 
 
 Soft goods manufacturer wants manufac- 
 turers' agent to sell his promotional line of 
 bed spreads, aprons, throw pillows. General 
 Merchants Ltd., 8 Duddell St. WTD 4/10/61. 
 I.R. 58.* 
 
 240 Lumber, Wood Products 
 
 Lumber merchants' agent desires to estab- 
 lish purchasing arrangements with major U.S. 
 lumber buyers. Can furnish varied species with 
 specifications to suit buyer's requirements. The 
 Sanger Purchase & Sales Agent, c/o 1505 
 Central Bldg., P.O. box 1073. NCIA I.R. 210.* 
 
 251 Household Furniture 
 
 Wholesale importer/distributor sought in 
 the U.S. for complete line manufacturer's teak- 
 wood furniture: living room, dining room, 
 bedroom; also custom-made to specifications 
 of U.S. buyer. Hong Kong Teak Wood Works 
 Ltd., North Point Terrace. WTD 6/19/63. I.R. 
 37. 
 
 282 Synthetic Materials 
 
 Direct importers for Aseco acelene (poly- 
 ethelene monofilament) , primarily used for 
 twines and cords. Also wishes to establish con- 
 nections with U.S. importers of general mer- 
 chandise. Asiatic European Corp., 1425 Central 
 Bldg., NCIA I.R. 172.* 
 
 283 Drugs 
 
 Wholesaler offers consumer items such as 
 penicillin ointment, toothpaste, hair dressing, 
 perfumeries, for export to U.S. Islands in the 
 Pacific. Shanghai Union Trading Co., 35 
 Queen's Rd., Central NCIA. I.R. 139. 
 
 285 Paints, Varnishes, Lacquers, 
 Enamels 
 
 Manufacturer of medium-priced line of 
 paints, varnishes and lacquers seeks agent in 
 U.S. to distribute his products. Gilla Paints 
 Work Ltd., 416 Kwun Tong Rd., Kowloon. 
 WTD 7/7/61 I.R. 28. 
 
 307 Plastic Products 
 
 Manufacturer of plastic rattan handbags and 
 plastic flowers seeks direct U.S. importer or 
 agent. Shin Ta Luk Import & Export Co., 
 Rm. 54, Printing House. WTD 5/15/63. I.R. 
 92.* 
 
 364 Electric Lighting, Wiring 
 Equipment 
 
 Manufacturer of lanterns seeks contacts in 
 the U.S. for expansion purposes. The World- 
 Light Manufactory, Ltd., Rm. 906, Yu To 
 Sang Bldg. WTD 11/9/56. I.R. 114.* 
 
 20 
 
391 Jewelry, Silverware, 
 Plated Ware 
 
 Ecclesiastical items such as candlesticks, 
 altar furnishings, vestments, other church 
 decorations requiring hand skills. Can manu- 
 facture to special designs. David Kwan, c/o 
 Dr. K. L. Hsu, Rra. 515, Alexandra House. 
 IR 213. 
 
 394 Toys, Amusement, Sporting Goods 
 
 Doll manufacturer wishes to export his 
 polyethylene and polystyrene dolls, various 
 sizes and prices to direct importers in the 
 U.S. Million Plastics Factory Ltd., 69 Hung 
 To Rd., 2nd Floor, Kwun Tong, Kowloon. 
 NCIA. I.R. 173.* 
 
 Manufacturer wants to sell his rubber foot- 
 wear in the U.S. through agents, distributors, 
 wholesalers and large chain stores. Kai Ming 
 Trading Co., Bank of East Asia Bldg. I.R. 169. 
 
 Manufacturer would like to sell his complete 
 line of men's and women's rubber canvas 
 shoes through U.S. agent or wholesaler and 
 large chain stores. Sik Yuen Co., Ltd, Rm. 
 86, Jardine House. I.R. 128. 
 396 Costume Jewelry, Novelties, 
 Buttons, Notions 
 
 Manufacturers' representative offers mis- 
 cellaneous consumer items for sale to U.S. : 
 plastic specialties, including flowers, costume 
 jewelry, ready made garments. Goodwood 
 Trading Co., 63 Printing House. WTD 2/4/63. 
 I.R. 42.* 
 
 Manufacturer seeks exclusive agents in New 
 York, Chicago, San Francisco lo sell his hand- 
 made wooden tableware and novelties made 
 of "monkey pod" and teak; can also custom- 
 make to buyer's design. Oriental Products Ltd., 
 10 St. George's Bldg. I.R. 34.* 
 
 399 Manufacturing Industries 
 
 Manufacturer of wax statues, polyester arts 
 and plastic doilies seeks agent for representa- 
 tion in the U.S. Fook Cheung Cheong & Co., 
 12 Hankow Rd., 1st Floor, Kowloon. I.R. 171.* 
 
 Manufacturer of tin and plastic torches, 
 small lanterns, plastic toys, musical items 
 wants agents, distributors, wholesalers and 
 chain stores in the U.S. to handle his prod- 
 ucts. Everlite Manufacturing Co., 305 Bank 
 of Canton Bldg. I.R. 175. 
 
 Manufacturer of varied consumer items 
 seeks contacts with direct buyers and/or 
 agent in U.S. to promote sales of all types of 
 nylon brushes; Chinese decorative novelty 
 items: flowers, lamps, screens, plaques. Good 
 Luck Plastic Works, 1A Single Storey Fac- 
 tory Block, Tonkin St., Cheunk Sha Wan. 
 I.R. 104.* 
 
 Manufacturer desires U.S. agent to sell his 
 mosquito repellent coils, made of pyrethrum 
 and pipronyl butozide. Hong Kong Electro- 
 Plating Manufactory, 21 Hing Yip St., Kun 
 Tong, Kowloon. I.R. 109.* 
 
 Exporter seeks connections with U.S. agents, 
 wholesalers, distributors and large chain 
 stores to sell line of plastic handbags, rain- 
 
 Investment Opportunities 
 
 The U.S. Trade and Investment Mis- 
 sion which visited Hong Kong October 
 and November received many requests 
 from Hong Kong businessmen to produce 
 American products through joint-venture 
 and licensing arrangements. These prod- 
 ucts include textiles, folding doors, paper 
 products, paints, plastics, machine screws, 
 air conditioners, precision instruments 
 and varied other products. 
 
 Licenses, joint ventures sought 
 
 225 Woolen goods 
 
 Manufacturer of woolen yarn seeks li- 
 cense to produce knitted sweaters, knitted 
 piece goods and woolen and synthetic 
 yarns. Oriental Pacific Mills, Ltd., 67-71 
 Queen's Road, Central. 
 
 242 Kiln machinery 
 
 Importer of dyes seeks joint-venture 
 arrangement to establish custom kiln-dry- 
 ing facilities for woods. Would need mate- 
 rials, machinery and know-how. Doyen 
 Plastic Colourant Co., 303 Sincere House, 
 Kowloon. 
 
 243 Folding doors 
 
 Licensing arrangement sought with 
 U.S. firm to produce wood folding doors 
 and partitions. Hong Kong Teak wood 
 Works, Lt., North Point Terrace. 
 
 262 Paper products 
 
 Importer seeks joint-venture arrange- 
 ment with U.S. manufacturer to produce 
 toilet tissue, paper napkins, towels, table 
 covers and special converted products. 
 Hindustan Trading Co., Ltd., 75 Wynd- 
 ham St. 
 
 285 Paints 
 
 Manufacturer of paints, varnishes and 
 lacquers would like to obtain license to 
 produce U.S. paints. Gilla Paints Works, 
 Ltd., 416 Kwan Tong Road, Kowloon. 
 
 307 Plastics 
 
 Manufacturer of metals, electronics 
 and electrical machines seeks a license 
 to produce plastic pipe fittings and cor- 
 rugated vinyl sheets. Union Metal Works, 
 Ltd., 1939 Union House. 
 345 Machine screws 
 
 Joint venture sought by screw manu- 
 facturer with U.S. firm to produce a com- 
 plete line of threaded machine screws 
 from 4 inches by Va inch long to l A inch 
 by 3 inches long, and type A sheetmetal 
 screws. Golden Dragon Metal Mfg., Ltd., 
 611 Central Bldg. 
 
 358 Air-conditioners 
 
 Licensing or joint-venture arrange- 
 ment sought by manufacturer of ceiling 
 fans to produce home air conditioners. 
 Kwoh Hing Engineering & Electrical 
 Mfg. Co., 105 How Ming St., Kwan 
 Tong, Kowloon. 
 
 21 
 
 coats, fashion wear, sportswear; flashlights, 
 batteries, toys, flowers, semi-finished jewelry ; 
 rattan cane and furniture. Hindustan Trading 
 Co., Ltd., 75 Wyndham St. WTD 10/10/62. 
 I.R. 165. 
 
 U.S. agents desired to sell line of woolen 
 sweaters, rubber shoes, plastic flowers and 
 other consumer items. Asia Raw Materials 
 Co., 84 Queen's Rd. Central. WTD 7/27/61. 
 I.R. 53.* 
 
 610 Credit Agency 
 
 Offers complete line of credit risk facilities 
 to U.S. firms considering or engaging in busi- 
 ness in Hong Kong and the entire Far East. 
 U.S. firms should communicate with Clarkee 
 by cable or airmail letter or through any Dun 
 and Bradstreet office in the U.S. or abroad. 
 Clarkes Mercantile Offices, 310-314 Caroline 
 Mansions, Hong Kong. Cable Address: 
 Sekraix. I.R. 96.* 
 
 739 Business Services 
 
 Newly formed company offers its services 
 to U.S. firms interested in investigating, nego- 
 tiating or operating joint ventures or license 
 arrangements in the Hong Kong or Far East 
 area. Jackson & Jackson Co., GPO Box 15177. 
 I.R. 145. 
 
 Merchandise inspection services offered to 
 U.S. buyers before shipment and guaranteed to 
 consignee. R. Chellaram, 1306 Wing, Life 
 Bldg. I.R. 161. 
 
 364 Lamps 
 
 Sheet-plastic manufacturer seeks joint 
 venture to manufacture fluorescent lamps, 
 tubing, electrodes and components for 
 neon and plastic signs. Thians' Plastics 
 Industrial Co., Ltd., 62 Bonham Strand 
 East. 
 
 367 Precision electronic instruments 
 
 Import-export firm desires to manufac- 
 ture under license or joint-venture basis 
 products such as precision electronic in- 
 struments or related items. Goddard & 
 Co., Ltd., Victory House, Wyndham St. 
 
 394 Metal, plastic toys 
 
 Manufacturer of toys, lanterns and 
 torches seeks license to produce light 
 metal and plastic toys. Everlite Mfg. Co., 
 305 Bank of Canton Bldg. 
 
 Varied products 
 
 • Sales firm seeks joint venture to 
 manufacture parts or complete nozzles 
 for controlling humidity in textile manu- 
 facturing. Barnett Sales (H.K.) Ltd., 
 1106 Commercial House, Queen's Road. 
 
 • Firm interested in joint venture with 
 U.S. manufacturer to make transistor 
 amplifiers, battery chargers and power 
 converters. D & O International, 1435 
 Union House. 
 
• Manufacturer of aluminum, steel 
 and copper interested in licensing ar- 
 rangement to extrude aluminum archi- 
 tectural sections and other aluminum 
 products, U.S. firm to be responsible for 
 marketing. Hong Kong Chaip Hua Mfg. 
 Co., 902 Fung House, 20 Connaught 
 Road, Central. 
 
 Opportunities for joint ventures and licensing 
 in Hong Kong 
 
 The Federation of Hong Kong Industries has prepared a list of the types of 
 industries which should be established in Hong Kong, according to Harold C. 
 Champeau, Commercial Officer, U.S. Consulate General, Hong Kong. 
 
 U.S. firms interested in joint ventures or licensing in Hong Kong should examine 
 this list and contact the Federation of Hong Kong Industries with offers to assist 
 in the development of any of these industries in Hong Kong. 
 
 1. Machinery: Portable air compressors, centrifugal water pumps, air blowers, 
 packaged steam boilers, simple industrial machines, simple agricultural machin- 
 ery and equipment. 
 
 2. Accessories for machinery: Small engineering accessories including hy- 
 draulic valves, multi-jaw chucks, magnetic chucks, safety and reducing valves, 
 variable-speed mechanisms, simple and small reduction-gear units, automatic 
 feeders and tools. 
 
 3. Electrical fittings: Fuse switches, motor starting gears, oil and air-circuit 
 breakers, plugs and'sockets. 
 
 4. Other electrical items: Small electric motors, household appliances, air 
 conditioners, fans, hanging and table lamps. 
 
 5. Electronics: Transistorized items including radios, record players and tape 
 recorders. 
 
 6. Scientific apparatus and instruments of a simple character: Tempera- 
 ture indicators and controllers, pressure indicators and regulators, solenoid 
 valves, engineering metrological instruments, medical and surgical equipment, 
 electrical measuring instruments, meters and testing equipment, slide rules and 
 geometrical instruments. 
 
 7. Products for highly sophisticated markets: Metal and mechanical toys, 
 carpets, wool piecegoods, novelties, books (printing and binding), canned, and 
 processed Chinese foodstuffs. 
 
 VVVVVVVVvVVAVVVVVVVVVVVVVvVVVVVVVVVVVVVVVVVVVVVVVVVVVvVVVVVvVvVVvVVVVVv 
 
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 ary-by the Bureau of International 
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 22 
 
Publication for International Traders 
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 below. 
 
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 WASHINGTON, D.C., 20230 
 
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 Please put my name on your mailing list to receive the 
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 Firm . 
 
 Person's name . 
 
 Street address _ 
 
 City, state, zip code . 
 
TT C FkAnnvtm 
 
 tent of Commerce — 
 
 -r if*lH flffir»f k/ ? 
 
 
 
 ALBUQUERQUE, N. MEX., 87)01 
 
 DENVER, COLORADO, 80202 
 
 NEW YORK, NEW YORK, 10001 
 
 U. S. Courthouse 
 
 142 New Custom House 
 
 61st Fl. Empire State Building 
 
 
 19th & Stout Street 
 
 350 Fifth Avenue 
 
 ANCHORAGE, ALASKA, 99501 
 
 
 
 Room 60 
 
 DETROIT, MICHIGAN, 48226 
 
 PHILADELPHIA, PA., 19107 
 
 U. S. Post Office & Courthouse 
 
 438 Federal Building 
 
 Jefferson Building 
 1015 Chestnut Street 
 
 ATLANTA, GEORGIA, 30303 
 
 CREENSBORO, N. C, 27402 
 
 
 4th Fl., Home Savings Bldg. 
 
 Room 407 U.S. Post Office Building 
 
 PHOENIX, ARIZONA, 85025 
 
 75 Forsyth Street, NW. 
 
 
 New Federal Building 
 
 
 HARTFORD, CONN., 06103 
 
 230 N. 1st Avenue 
 
 BIRMINGHAM, ALABAMA, 35203 
 
 18 Asylum Street 
 
 
 Title Building 
 
 
 PITTSBURGH, PA., 15222 
 
 HONOLULU, HAWAII, 96813 
 
 
 2028 Third Avenue 
 
 
 1030 Park Building 
 
 
 202 International Savings Building 
 
 355 Fifth Avenue 
 
 
 1022 Bethel Street 
 
 
 BOSTON, MASS., 02110 
 
 
 PORTLAND, OREGON, 97204 
 
 Room 230 
 
 HOUSTON, TEXAS, 77002 
 
 
 80 Federal Street 
 
 5102 Federal Building 
 515 Rusk Avenue 
 
 217 Old U.S. Courthouse 
 520 SW. Morrison Street 
 
 BUFFALO, NEW YORK, 14203 
 504 Federal Building 
 1 17 Ellicott Street 
 
 JACKSONVILLE, FLORIDA, 32202 
 512 Creenleaf Building 
 204 Laura Street 
 
 RENO, NEVADA, 89502 
 1479 Wells Avenue 
 
 RICHMOND, VIRGINIA, 23240 
 
 CHARLESTON, S. C, 29401 
 
 
 
 
 KANSAS CITY, MISSOURI, 64106 
 
 2105 Federal Building 
 
 Area 2 
 
 Sergeant Jasper Building 
 
 Room 2011, 911 Walnut Street 
 
 400 North 8th Street 
 
 West End Broad Street 
 
 LOS ANGELES, CALIF., 90015 
 
 ST. LOUIS, MISSOURI, 63103 
 
 CHEYENNE, WYOMING, 82001 
 
 Room 450 Western Pacific Building 
 1031 S. Broadway 
 
 2511 Federal Building 
 1520 Market Street 
 
 207 Majestic Building 
 
 
 
 1 6th Cr Capitol Avenue 
 
 MEMPHIS, TENNESSEE, 38103 
 
 SALT LAKE CITY, UTAH, 84101 
 
 
 212 Falls Building 
 
 222 SW. Temple Street 
 
 CHICAGO, ILLINOIS, 60606 
 
 22 N. Front Street 
 
 
 Room 1302 
 
 
 SAN FRANCISCO, CALIF., 94011 
 
 226 West Jackson Boulevard 
 
 MIAMI, FLORIDA, 33132 
 
 Room 419 Customhouse 
 
 
 408 Ainsley Building 
 
 555 Battery Street 
 
 CINCINNATI. OHIO, 45202 
 
 14 NE. First Avenue 
 
 
 809 Fifth Third Bank Building 
 
 MILWAUKEE, WISCONSIN, 53203 
 
 SANTURCE, PUERTO RICO, 00907 
 
 36 E. Fourth Street 
 
 1201 Straus Bldg., 
 
 238 West Wisconsin Avenue 
 
 605 Condado Avenue 
 
 CLEVELAND, OHIO, 44101 
 
 
 SAVANNAH, GEORGIA, 31402 
 
 4 th Floor 
 
 MINNEAPOLIS, MINN., 55401 
 
 235 U.S. Courthouse and 
 
 Federal Reserve Bank Building 
 
 Room 304 Federal Building 
 
 Post Office Building 
 
 E. 6th St. & Superior Avenue 
 
 1 1 South Fourth Street 
 
 125-29 Bull Street 
 
 DALLAS, TEXAS, 75201 
 
 NEW ORLEANS, LA., 70130 
 
 SEATTLE, WASHINGTON, 98104 
 
 Rm. 3-104 Merchandise Mart 
 
 1 508 Masonic Temple Building 
 
 809 Federal Office Building 
 
 500 South Ervay Street 
 
 333 St. Charles Avenue 
 
 909 First Avenue 
 
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