WORLD TRADE  
ORGANIZATION  G/SCM/N/155/HKG 
19 December 2007 
 (07-5663) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
HONG KONG, CHINA 
 
 
 The following communication, dated 18 December 2007, is being circulated at the request of 
the Delegation of Hong Kong, China.    
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 Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies 
and Countervailing Measures (ASCM), Hong Kong, China submits herewith the new and full 
notification for the fiscal year 2006-07.  In accordance with Article 25.7 of the ASCM, the 
notification of the measures concerned does not prej udge their legal status, effects or nature under 
GATT 1994 and the ASCM.   
  G/SCM/N/155/HKG 
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  A. F
ISHERIES DEVELOPMENT LOAN FUND 
1. Title of the programme  
  Fisheries Development Loan Fund.    
2. Period covered by the notification
 
  Fiscal year 2006-07 (i.e. April 2006 – March 2007).    3. Policy objective and/or purpose
 
 
 To provide loans for fishermen to switch to su stainable fisheries or related operations which 
are conducive to reducing fishing efforts and conservi ng fisheries resources, and for fish farmers to 
develop aquaculture with a view to improving th e quality and food safety standards of aquaculture 
products.   
 
4. Background and authority  
  The fund is administered by the Agriculture, Fisheries and Conservation Department.    5. Form
 
 
 Loan.    6. To whom and how the assistance is provided
 
 
 Applicants for loans to capture fishermen mu st be Hong Kong residents and local fishing 
vessel owners on or before 16 June 2006;  or loca lly registered companies wholly owned by local 
fishermen who are also local residents, and the majority of whom are local fishing vessel owners fulfilling the afore-mentioned criteria.  Eligible fisherman or company may borrow under this loan 
fund once only.    
 Applicants for loans to fish farmers must be Hong Kong residents engaged in aquaculture 
operations;  or locally registered companies wholly owned by any of the fish farmers who are also local residents.     The loan is granted at an interest rate of 2. 5 per cent per annum for capture fishermen;  and at 
an interest rate based on the "No Gain No Loss"  principle of the Hong Kong Special Administrative 
Region Government for fish farmers.  The "No Gain No Loss" rate is set by taking into account such 
factors as the best lending rates of the note-issuing banks in Hong Kong.    7. Amount
 
 
 The amount of loans approved for the fiscal year 2006-07:  Nil.   
 8. Duration
 
  This is an on-going scheme.   
 
9. Statistical data permitting an assessment of the trade effects
 
  No data available.    G/SCM/N/155/HKG 
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  B. FISH MARKETING ORGANIZATION LOAN FUND 
1. Title of the programme  
  Fish Marketing Organization Loan Fund.    
2. Period covered by the notification
 
  Fiscal year 2006-07 (i.e. April 2006 – March 2007).    3. Policy objective and/or purpose
 
 
 To provide loans to fishermen for meeting their production and sustainable development needs, including repair and replacement of fishing vessels, gear and equipment.    4. Background and authority
 
 
 The fund has been set up by the Fish Marketing Organization (FMO), a statutory body established by the authority of the Marine Fish (Marketing) Ordinance (Chapter 291).  The FMO is the major source of the fund.    5. Form
 
 
 Loan.    6. To whom and how the assistance is provided
 
 
 Applicants may include:  (i) a member of regist ered fishermen's co-operative society;  (ii) an 
individual fisherman;  or (iii) a registered fishing company.     There are three types of loans that may be gran ted under the Fund:  normal loans, special one-
year loans for fishermen affected by the two-mont h annual fishing moratorium in the South China 
Sea, and special loans for fishermen to switch to su stainable fisheries operations.  The interest rates 
applicable in the fiscal year 2006-07 were as follows:   
 
• normal loans:  5.58 per cent to 5.92 per cent per annum for individual fishermen, and 3 per 
cent per annum for members of registered co-operative societies;   
 
• special one-year loans for fish ermen affected by the annual moratorium:  2 per cent per 
annum;   
 
• special loans for fishermen to switch to sust ainable fisheries operations:  3 per cent per 
annum.   
 7. Amount
 
 
 The amount of loans approved for the fiscal year 2006-07 was as follows:   
 
• normal loans:  HK$905,000.   
 
• special loans for fishermen affected by the annual moratorium:  HK$77,170,000.   
 
• special loans for fishermen to switch to sustai nable fisheries operations:  HK$1,300,000.   G/SCM/N/155/HKG 
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  8. Duration
 
  This is an on-going scheme.    9. Statistical data permitting an assessment of the trade effects
 
 
 No data available.    C. K
ADOORIE AGRICULTURAL AID LOAN FUND 
1. Title of the programme  
 
 Kadoorie Agricultural Aid Loan Fund.    2. Period covered by the notification
 
 
 Fiscal year 2006-07 (i.e. April 2006 – March 2007).   
 3. Policy objective and/or purpose
 
  To provide loans to fish farmers and fa rmers for development and working capital.  
Specifically, loans are issued fo r purchase of livestock, fry, feed and farm equipment, and 
maintenance of farms.   
 4. Background and authority
 
  The fund has been established under the Kadoorie Agricultural Aid Loan Fund Ordinance 
with donations from both non-government sources an d the Hong Kong Special Administrative Region 
Government.    5. Form
 
  Loan.   
 
6. To whom and how the assistance is provided
 
  Fish farmers and farmers.  The interest rates applicable in the fiscal year 2006-07 were as follows:   
 
• loans not exceeding HK$100,000:  1.625 pe r cent to 1.9375 per cent per annum for 
development capital, and 2.1667 per cent to 2.5833 per cent per annum for working capital;   
 
• loans between HK$100,000 and HK$160,000:  4. 500 per cent to 4.875 per cent per annum;   
 
• loans at HK$160,000 and above:  6.8333 per cent to 7.1667 per cent per annum.   
 
7. Amount
 
  The amount of loans approved for the fiscal year 2006-07 was HK$9,265,000.    8. Duration
 
 
 This is an on-going scheme.    G/SCM/N/155/HKG 
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  9. Statistical data permitting an assessment of the trade effects  
  No data available.     
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