. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/HKG/6 
13 November 2006 
 
 (06-5467) 
Committee on Subsidies 
and  Countervailing Measures Original:   English 
 
 
  
SUBSIDIES 
 
Questions from the UNITED STATES
 
Regarding the New and Full Notification of HONG KONG, CHINA1 
   The following communication, dated 10 November  2006, is being circulated at the request of 
the Delegation of the United States. 
 
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Fisheries Development Loan Fund 
 1. Please explain specifically how loans under this  programme assist fishermen in shifting to 
“sustainable fishing operations” and describe any regul ations or steps that the government takes to 
ensure that all support provided under this progra mme is used only for sustainable fishing operations. 
 2. How do concerns about overcapacity and overfishing factor into the administration of this 
programme? 
 
Fish Marketing Organization Loan Fund 
 
1. From the title of this programme, it appears that these loans have some relationship to the 
marketing of fishery products.  However, this is not clear in the statement of policy objective and/or 
purpose.  Please explain. 
 2. The description indicates that this programme provides “loans to fishermen for meeting their 
production and sustainable development needs, incl uding repair and replacement of fishing vessels, 
gear and equipment”.  Please describe any regulatio ns or steps that the government takes to ensure 
that all support provided under this programme is  used only for sustainable fishing operations. 
 3. How do concerns about overcapacity and overfishing factor into the administration of this programme?  Fish Marketing Organization Loan Fund 
 
1. With regard to the special loans for de velopment of offshore fishing, please provide 
additional information regarding the “No Gain No Loss” principle mentioned in the notification.  
What is the policy rationale behind this principle?  
                                                     
 
1 G/SCM/N/123/HKG G/SCM/Q2/HKG/6 
Page 2  
 
  2. Other than “the best lending rates of th e note-issuing banks in Hong Kong”, what other 
factors are taken into account in setting a “No Ga in No Loss” rate?  How do the authorities decide 
which and to what extent these factors are taken into account?  
Other Programs
 
 
 Certain publicly available information indicates that Hong Kong, China maintains subsidy programs that may meet the requirements for notification under Article 25.  Please explain why the programs listed below have not been notified.  If they do qualify as programs that should be notified, 
and to the extent they have not yet been no tified, please provide the information required under 
Article 25.3 of the SCM Agreement and other pr ogram-specific information as requested below. 
 
Innovation and Technology Fund 
 
 According to public information, the Innovation and Technology Fund (ITF) is administered 
by Hong Kong’s Innovation and Technology Commission.  The programme aims to increase the 
added value, productivity and competitiveness of Hong Kong’s economic activities.  It appears that a 
large portion (approximately 62 per cent) of fund s under this programme is provided to electronics 
and information technology.  In addition, biotec hnology and nanotechnology projects appear to also 
receive large support under this programme. (See
, http://www.itf.gov.hk/eng/statistics.) 
 Integrated Circuits Development Centre 
 
 According to publicly available information, Hong Kong has recently created the Integrated 
Circuits Design/Development Centre at the Hong Kong Science & Technology Parks Corporation.  
The Centre will support integrated circuits (IC) companies throughout the entire IC product 
development cycle from initial design to production release.  (See
, 
http://www.hkstp.org/english/hks p_tech/hksp_tech_inn.html.)  
 
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