WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/HKG/10 
22 September 2011 
 (11-4570) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
SUBSIDIES 
 
Replies to Questions Posed by AUSTRALIA1 Regarding the 
New and Full Subsidy Notification of HONG KONG, CHINA2 
 
 
 The following communication, dated 20 September 2011, is being circulated at the request of 
the Delegation of Hong Kong, China. 
 
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Fisheries Development Loan Fund 
 Question 1   With regard to the programme notified in Section I.A of G/SCM/N/220/HKG, could Hong Kong, China please provide information on: 
 
(a) when the programme commenced?  and 
Reply 
 
 It was established in 1960. 
 
(b) whether there are any limits in the programme on loans to wild capture fishing 
compared with loans to aquaculture? 
Reply 
 
 The maximum amount of loans for both wild cap ture fishing and aquaculture depends on the 
value of collateral provided by the borrowers.  In  the case of a vessel being used as collateral, the 
maximum loan amount will be equivalent to 95% of the estimated market selling price of the vessel or 
HK$5 million, whichever is the less.  
 
Fish Marketing Organisation Loan Fund 
 
Question 2   With regard to the programme notified in Section I.B of G/SCM/N/220/HKG, could Hong Kong, China please provide more detail on: 
 
                                                      
1 G/SCM/Q2/HKG/8 + Corr.1. 
2 G/SCM/N/220/HKG. G/SCM/Q2/HKG/10 
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  (a) when the programme commenced? 
Reply 
 
 It was established in 1946.   
(b) whether there are any limits in the programme on loans to wild capture fishing 
compared with loans to aquaculture? 
Reply 
 
 The programme does not provide loans to fish farmers.  
 
 A ceiling of HK$150,000 per vessel is set on the amount of special loans to fishermen 
affected by the fishing moratorium.  With regard  to the amount of normal loans, it depends on the 
value of collateral provided by the borrowers and other circumstances, such as the repayment ability 
of the applicants.  The maximum amount of normal loans issued since 2009 is HK$200,000. 
 
(c) the conditions of the loans provided to those affected by the South China Sea 
moratorium, including on repayment requirements of the loans, whether fishermen can reapply each year, whether the loans may be used to purchase vessels with greater capacity and how the loans provided help meet “sustainable 
development needs”? For example, are there requirements placed on the loans 
that gear and equipment upgrades contribute to sustainable fishing techniques?  
and 
Reply 
 
 The main purpose of the loan fund is to he lp fishermen tide over the fishing moratorium 
implemented in the South China Sea and make prep aration for resumption of fishing activities after 
the moratorium.     Borrowers are not allowed to use the loans for purchasing new vessels but they can use the 
loans for the maintenance and repair of the gear  and equipment of the existing fishing vessels.  
Fishermen are also required to repay their loans in one year, and they can re-apply fishing moratorium 
loans each year. Applications from those who have  unsatisfactory repayment records will not be 
considered.    Implementation of fishing moratorium is a wo rldwide protective measure which allows time 
for smaller fishes to grow and fisheries to develop in a more sustainable way.  Fishermen who borrow 
the loan will not be allowed to conduct fishing ac tivities during the fishing moratorium.  Therefore, 
the implementation of fishing moratorium and the requirement of the loan fund not allowing 
borrowers to conduct fishing during the moratorium help preserve the fisheries resources in the South 
China Sea and Hong Kong, China’s waters.  
(d) how the authorities of Hong Kong, Chin a assess whether fishermen are affected 
by the South China Sea moratorium?  
Reply 
 
 The Chinese authority makes announcement each y ear indicating the types of fishing vessels 
that need to cease fishing during the moratorium .  Fishermen of Hong Kong, China who hold valid  G/SCM/Q2/HKG/10 
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  licences issued by the Chinese authority and whose v essel types are included in the list announced, are 
considered to be affected by the fishing annual moratorium.   
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