Daily Information Bulletin - 1990s - 1993 - MAR - ENG

 DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

MONDAY, MARCH 1, 1993

CONTENTS PAGE NO.

DISBANDMENT OF RHKAAF MARKS A NEW BEGINNING ..................... 1

SPENDING ON EDUCATION UP BY 7 PER CENT .......................... 1

WORKERS BETTER PROTECTED ON INSOLVENCY .......................... 4

QUALITY IMPROVEMENT TN SOCIAL WELFARE SERVICES .................. 5

HK LOOKS FOR CLEANER FUELS ...................................... 6

RECOMMENDATIONS ON SAFETY MEASURES FOR HONG KONG COLISEUM ... 9

1992 DOMESTIC EXPORT STATISTICS CLASSIFIED BY INDUSTRIAL ORIGIN ........................................................ 10

WATER SUPPLIES DEPARTMENT PLEDGES OPENNESS AND ACCOUNTABILITY 13

EEC ANNOUNCES J 993 GSP SCHEME ................................. 14

COURT OF APPEAL JUDGE APPOINTED ................................ 15

CUSTOMS REVISE SCALE OF REWARDS ................................ 15

FS TO DELIVER BUDGET SPEECH ON WEDNESDAY ....................... 16

WATER STORAGE FIGURE ........................................... 17

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 17

MONDAY, MARCH 1, 1993

DISBANDMENT OE RHKAAF MARKS A NEW BEGINNING * * * * ♦

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN THIS (MONDAY) AFTERNOON OFFICIATED AT THE DISBANDMENT PARADE OF THE 44-YEAR-OLD ROYAL HONG KONG AUXILIARY AIR FORCE, AN OCCASION WHICH HE DESCRIBED AS MARKING "NOT SO MUCH IN ENDING , BUT A METAMORPHOSIS OR A NEW BEGINNING".

"I DON’T OVER-LABOUR THAT METAPHOR IF I SAY THAT THE CHRYSALIS OF THE AUXILIARY AIR FORCE WILL NOW EMERGE AS THE BUTTERFLY OF THE GOVERNMENT FLYING SERVICE," HE SAID.

"THE CHANGE IS TRULY ONE MORE OF FORM THAN OF SUBSTANCE."

THE GOVERNOR WAS ADDRESSING 500 SERVING AND PAST MEMBERS OF THE ROYAL HONG KONG AUXILIARY AIR FORCE WHICH WILL BE DISBANDED AT THE END OF MARCH AND REPLACED BY THE GOVERNMENT FLYING SERVICE.

"LIKE THE AUXILIARIES, THE GOVERNMENT FLYING SERVICE WILL COMPRISE A PERMANENT CORE OF PROFESSIONAL FLYERS, SUPPORTED BY A DEDICATED BODY OF VOLUNTEERS," HE SAID.

"THE SAME DISCIPLINE, THE SAME SKILL AND THE SAME COURAGE WILL CONTINUE TO INFUSE THE SPIRITS OF ALL THOSE WHO ARE PART OF IT, AND THEY WILL BE THE SAME INDIVIDUALS AS THOSE WHO ARE SERVING TODAY BUT THE ORGANISATION WILL BE A CIVILIAN RATHER THAN A MILITARY ONE.

"WHILST THIS MEANS THAT NEW STANDARDS AND PRACTICES WILL BE INTRODUCED, THE CHANGE IS AN EVOLUTIONARY, NO'! A REVOLUTIONARY STEP."

MR PATTEN CONCLUDED HIS ADDRESS B\ THANKING ALL PRESENT AND PAST MEMBERS OF THE ROYAL HONG KONG AUXILIARY AIR FORCE FOR WHAT THEY HAD DONE FOR THE COMMUNITY.

"MANY PEOPLE ALIVE TODAY OWE THEIR LIVES TO YOUR DEDICATION, TO YOUR SKILL AND TO YOUR BRAVERY," HF ADDED.

SPENDING ON EDUCATION UP BY 7 PER CENT

*****

THE GOVERNMENT IS PLANNING TO SPEND $20,246 MILLION ON THE EDUCATION PROGRAMME AND $645 MILLION ON HIE EMPLOYMENT PROGRAMME IN THE 1993/94 FINANCIAL YEAR.

AT A PRESS CONFERENCE TODAY (MONDAY), THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID THE FUNDS EARMARKED FOR THE EDUCATION PROGRAMME REPRESENTED A REAL INCREASE OF $1.4 BILLTON OR 7.3 PER CENT OVER THE REVISED ESTIMATES FOR 1992/93 WHILE THAT FOR THE EMPLOYMENT PROGRAMME REMAINED AT ROUGHLY THE SAME LEVEL AS LAST YEAR.

/THE TOTAL .......

MONDAY, MARCH 1, 1993

2

THE TOTAL RECURRENT EXPENDITURE FOR THE TWO PROGRAMMES IS MADE UP AS FOLLOWS:

* TERTIARY EDUCATION - $ 6,641 MILLION

* SCHOOL EDUCATION - $12,891 MILLION

* TECHNICAL EDUCATION - $ 711 MILLION

* EMPLOYMENT - $ 645 MILLION

"BY ITSELF, EDUCATION REMAINS THE LARGEST SINGLE COMPONENT OF GOVERNMENT’S BUDGET - 20.8 PER CENT IN TERMS OF RECURRENT EXPENDITURE AND 16.2 PER CENT IN TERMS OF TOTAL PUBLIC EXPENDITURE,” MR CHAN SAID.

ON TERTIARY EDUCATION, THE $6,641 MILLION REPRESENTS AN INCREASE OF $772 MILLION (13.2 PER CENT) COMPARED WITH 1992/93.

OUT OF THE INCREASE, $650 MILLION IS GEARED TO MEET THE GROWTH TN STUDENT NUMBERS IN ACCORDANCE WITH THE EXPANSION PROGRAMME; $53 MILLION IS ADDITIONAL FUNDING FOR THE LOCAL STUDENT FINANCE SCHEME; $38 MILLION IS TO PROVIDE AN OPTION TO UNIVERSITY CLINICAL MEDICAL DOCTORS TO TRANSFER TO HOSPITAL AUTHORITY TERMS; AND $31 MILLION IS ENHANCED FUNDING FOR ACADEMIC RESEARCH.

MR CHAN SAID THE NUMBER OF FIRST-YEAR FIRST-DEGREE PLACES IN INSTITUTIONS FUNDED BY THE UNIVERSITY AND POLYTECHNIC GRANTS COMMITTEE (UPGC) WOULD BE INCREASED FROM 11,000 THIS YEAR TO 12,500 IN THE 1993/ 94 ACADEMIC YEAR.

AS A RESULT, THE TOTAL FULL-TIME EQUIVALENT STUDENT POPULATION IN THE INSTITUTIONS WILL GO UP FROM 48,800 TO 52,400.

"WE ARE WELL ON THE WAY TO ACHIEVING OUR TARGET OF 14,500 FIRST-YEAR FIRST-DEGREE PLACES OR 18 PER CENT OF THE RELEVANT AGE GROUP BY 1994/95," MR CHAN SAID.

"UPGC IS UNDERTAKING A REVIEW ON OUR TERTIARY EDUCATION AND WILL ADVISE ON FURTHER DEVELOPMENT IN THE POST-1994 PERIOD.”

TURNING TO SCHOOL EDUCATION, THE SECRETARY SAID THE $12,894 MILLION EARMARKED FOR THIS SECTOR REPRESENTED AN INCREASE IN REAL TERMS OFF $599 MILLION, OR 4.9 PER CENT, OVER THE FIGURE FOR 1992/93.

HE SAID THE INCREASE WAS MORE SIGNIFICANT WHEN VIEWED AGAINST A 2.4 PER CENT DROP IN ENROLMENT IN THE PRIMARY SECTOR.

HE WAS CONFIDENT THAT THE GOVERNMENT WAS ABLE TO DELIVER, IN TIME AND ON TARGET, ON ALL THE NEW INITIATIVES ANNOUNCED IN THE GOVERNOR’S ADDRESS IN OCTOBER.

MR CHAN SAID THE $599 MILLION INCREASE FOR SCHOOL EDUCATION WAS MAINLY EARMARKED FOR THE FOLLOWING SERVICES:

* OPERATION OF ADDITIONAL SIXTH FORM (’LASSES

$185 MILLION

/* PROVIDING ADDTTTONAT.........

MONDAY. MARCH 1, 1993

3

* PROVIDING ADDITIONAL TEACHERS TO BISSESSIONAL PRIMARY SCHOOLS - $ 50 MILLION

* REDUCING CLASS SIZE IN PRIMARY ONE - $ 34 MILLION

IMPROVEMENT OF GOVERNMENT ASSISTANCE TO 10 CAPUT SCHOOLS - $ 18 MILLION

TRAINING FOR SCHOOL-BASED REMEDIAL SUPPORT PROGRAMME - $ 12 MILLION

t IMPLEMENTING TARGETS AND TARGET-RELATED ASSESSMENTS - $ 12 MILLION

* INTENSIVE ENGLISH PROGRAMME FOR SIXTH FORM CHINESE MEDIUM STUDENTS - $ 11 MILLION

* IMPROVEMENT MEASURES RELATING TO PROVISION OF STUDENT GUIDANCE OFFICERS - $ 10 MILLION

ESTABLISHMENT OF A PROVISIONAL GOVERNING COUNCIL OF THE PROPOSED HONG KONG INSTITUTE OF EDUCATION - $ 8 MILLION

FUNDING FOR THE NEW COMMITTEE ON HOME-SCHOOL COOPERATION $ 5 MILLION

* IMPROVED TEACHER:CLASS AND $ 5 MILLION

SENIOR TEACHER RATIOS FOR 30 ADDITIONAL WHOLE DAY PRIMARY SCHOOLS

MR CHAN SAID: "THESE MEASURES CLEARLY DEMONSTRATE THE GOVERNMENT’S COMMITMENT TO PROVIDE ADDITIONAL RESOURCES FOR THE COMPREHENSIVE AND COHERENT PACKAGE OF QUALITY IMPROVEMENTS RECOMMENDED IN THE EDUCATION COMMISSION’S REPORTS 4 AND 5.

"WHEN FULLY IMPLEMENTED, THESE MEASURES WILL NO DOUBT MAKE A REAL DIFFERENCE TO THE QUALITY OF OUR SCHOOL EDUCATION."

TECHNICAL EDUCATION WILL GET AN ESTIMATED $711 MILLION, ABOUT $73 MILLION OR 11.4 PER CENT MORE THAN THAT OF LAST YEAR.

THE ADDITIONAL PROVISION IS TO ENABLE THE VOCATIONAL TRAINING COUNCIL (VTC) TO TAKE OVER SUB-DEGREE COURSES TRANSFERRED FROM THE POLYTECHNICS.

WITH THE COMPLETION OF THE TWO TECHNICAL COLLEGES AT TSING YI AND CHAI WAN, THE VTC WILL START ITS FIRST INTAKE OF SUB-DEGREE STUDENTS IN SEPTEMBER 1993.

/AS A .........

MONDAY. MARCH 1, 1993


AS A RESULT, THE STUDENT ENROLMENT FOR SUB-DEGREE COURSES IS EXPECTED TO BUILD UP FROM 2,250 FULL-TIME EQUIVALENT IN 1993/94 TO 6,750 FULL-TIME EQUIVALENT IN 1996/97.

ON THE EMPLOYMENT PROGRAMME WHICH INCLUDES INDUSTRIAL TRAINING, ACTIVITIES OF THE LABOUR DEPARTMENT AND REGISTRY OF TRADE UNIONS, THE RECURRENT EXPENDITURE FOR 1993/94 IS ESTIMATED TO BE $645 MILLION -ROUGHLY THE SAME AS LAST YEAR.

HOWEVER, MR CHAN SAID ADDITIONAL FUNDING OF $3.5 MILLION A YEAR HAD BEEN INCLUDED FOR THE LABOUR DEPARTMENT TO PROVIDE ADDITIONAL STAFF TO COPE WITH INDUSTRIAL SAFETY WORK ARISING FROM THE AIRPORT CORE PROGRAMME.

SUMMING UP, MR CHAN SAID THE ADDITIONAL FUNDING OF $1.4 BILLION IN THE EDUCATION PROGRAMME Dll) NOT REPRESENT THE SUM-TOTAL OF IMPROVEMENTS TO BE INTRODUCED IN 1993/94.

’’THE EDUCATION AND MANPOWER BRANCH AND ITS DEPARTMENTS HAVE CONTINUED EFFORTS TO ACHIEVE GREATER PRODUCTIVITY AND VALUE FOR MONEY THROUGH REDEPLOYMENT OF BASELINE SAVINGS,” MR (’HAN SAID.

"IN ADDITION, IT MUST BE REMEMBERED THAT SUBSTANTIAL ONE-OFF INJECTIONS OF FUNDS WERE MADE IN THE CURRENT FINANCIAL YEAR FOR VARIOUS IMPROVEMENTS - $300 MILLION FOR EMPLOYEES RETRAINING FUND AND $150 MILLION FOR THE OPEN LEARNING INSTITUTE.

"IT IS ALSO IMPORTANT TO REMEMBER. THAT SOME IMPROVEMENTS MAY NOT INVOLVE EXPENDITURE OF PUBLIC FUNDS, SUCH AS IMPROVEMENTS IN SOME AREAS OF LABOUR LEGISLATION,” MR (HAN M)|)ED.

--------0 -----------

WORKERS BETTER PROTECTED ON INSOLVENCY * * * * *

WORKERS WHOSE EMPLOYERS BECOME INSOLVENT WILL BE BETTER PROTECTED ON ARREARS OF WAGES AND WAGES IN LIEU OF NOTICE WITH THE PROTECTION OF WAGES ON INSOLVENCY (AMENDMENT) ORDINANCE 1993 CAME INTO EFFECT LAST FRIDAY.

UNDER THE ORDINANCE, THE MAXIMUM LIMIT OF EX-GRAT1A PAYMENT IN RESPECT OF ARREARS OF WAGES WILL BE INCREASED FROM $9,000 TO $18,000 PER APPLICANT AND WAGES IN LIEU OF NOTICE FROM SEVEN DAYS’ WAGES UP TO $2,000 TO ONE MONTH’S WAGES UP TO $6,000.

ASSISTANT COMMISSIONER FOR LABOUR, MR ALFRED CHAN, SAID TODAY (MONDAY):

"WE ARE VERY PLEASED TO SEE THAT WITH THE ENACTMENT OF THE AMENDED ORDINANCE, IMPROVED COVERAGE WILL BE PROVIDED TO THF ENTITLEMENT OF THE WORKERS."

/MR CHAN .......

MONDAY, MARCH 1, 1993

5

MR CHAN SAID THE AMENDMENT WOULD APPLY TO EMPLOYEES WHO HAD THEIR EMPLOYMENT TERMINATED BY THEIR EMPLOYERS ON OR AFTER FEBRUARY 26.

’’FOR EXAMPLE, AN EMPLOYEE WHO HAS HIS EMPLOYMENT TERMINATED ON OR AFTER FEBRUARY 26 AND WAS OWED WAGES OF $10,000 BY HIS EMPLOYER WILL NOW BE FULLY COVERED BY THE EX-GRATIA PAYMENT BY THE PROTECTION OF WAGES ON INSOLVENCY FUND," HE SAID.

BEFORE THE ENACTMENT OF THE AMENDMENT ORDINANCE, THE EMPLOYEE WAS ONLY ENTITLED TO A MAXIMUM OF $8,000 IN RESPECT OF ARREARS OF WAGES.

"AS REGARDS WAGES IN LIEU OF NOTICE, AN APPLICANT WILL NOW BE GIVEN EX-GRATIA ALLOWANCE FROM ONE MONTH’S WAGES UP TO $6,000 IF HIS EMPLOYMENT IS TERMINATED BY HIS EMPLOYER INSTEAD OF THE PREVIOUS SEVEN DAYS’ WAGES UP TO $2,000," MR CHAN ADDED.

ENQUIRIES CAN BE MADE TO THE WAGE SECURITY UNIT OF THE LABOUR DEPARTMENT ON TEL 834 G037.

------0 - - - -

QUALITY IMPROVEMENT IN SOCIAL WELFARE SERVICES ♦ ♦ ♦ ♦ *

THE QUALITY OF AT LEAST THREE AREAS OF SOCIAL WELFARE SERVICES - PUBLIC ASSISTANCE, YOUTH AT RISK AND FAMILY - WILL BE IMPROVED SIGNIFICANTLY IN THE COMING YEAR, THE DIRECTOR OF SOCIAL WELFARE, MR IAN STRACHAN, SAID TODAY (MONDAY).

SPEAKING AT A PRESS CONFERENCE ON THE 1993/94 BUDGET, MR STRACHAN SAID HE HAD HEARD CRITICISM THAT THE GOVERNMENT WAS PUTTING ALL ITS MONEY INTO INCREASING THE QUANTITY OF SERVICE IN SOCIAL WELFARE BUT THAT THERE WOULD NOT BE INCREASES IN QUALITY.

HE STRESSED THAT WHILE TRYING VERY HARD TO MEET THE AMBITIOUS TARGETS IN SOCIAL WELFARE AS SET BY THE GOVERNOR LAST OCTOBER, THE QUALITY OF SERVICES MUST NOT BE OVERLOOKED.

HF SAID THERE WOULD BE IMPROVEMENTS IN THE QUALITY OF MANY SOCIAL WELFARE SERVICES. HE GAVE THREE EXAMPLES.

ELDERLY SINGLE PEOPLE, WHO ARE THE LARGEST NUMBER OF RECIPIENTS UNDER THE EXISTING SOCIAL SECURITY SCHEME, WILL GET AN INCREASE IN REAL TERMS OF BETWEEN 10 PER CENT AND 15 PER CENT AND FOR FAMILY MEMBER WHO IS ABLE BODIED, THERE WILL BE \N INCREASE OF 32 PER CENT.

"TN THE ARFA OF YOUTH AT RISK THERE WILL BE AN INCREASE OF AT LEAST 19 PER CENT IN THE NUMBER OF PROBATION OFFICERS AND SOCIAL WORKERS IN THE PROBATION SERVICE.

"THE NUMBER OF SCHOOL SOCIAL WORKERS FOR THE COMING YEAR WILL ALSO BE INCREASED BY 12 PER (’ENT," HE SAID.

/MR STRACHAN .......

MONDAY, MARCH 1, 1993

6

MR STRACHAN SAID THE SOCIAL WELFARE DEPARTMENT WAS CREATING CARE FOR THE FAMILY IN A FAMILY SETTING.

HE SAID THE DEPARTMENT WAS SEEKING TO BREAK LARGE INSTITUTIONS AND KEEP CHILDREN IN SMALL GROUP HOMES.

"NEXT YEAR WE WILL SEE A SIGNIFICANT 100 PER CENT INCREASE IN THE NUMBER OF SMALL GROUP HOMES AND FOSTER CARE PLACES ARE ALSO GOING TO BE INCREASED BY 50 PER CENT,” HE SAID.

THE DEPARTMENT IS ALSO PLANNING OTHER INCREASES IN THE PROVISION OF FAMILY SERVICES.

"THE NUMBER OF CLINICAL PSYCHOLOGISTS WILL INCREASE BY 30 PER CENT NEXT YEAR," HE ADDED.

-----0-------

HK LOOKS FOR CLEANER FUELS

*****

HONG KONG EXPECTS TO BE IN THE FORTUNATE POSITION OF BEING ABLE TO USE ELECTRICITY GENERATED FROM COALS, OIL, NATURAL GAS, NUCLEAR AND HYDROELECTRIC SOURCES, WITH THE NUCLEAR AND HYDROELECTRIC SOURCES BEING IN SOUTHERN CHINA.

THIS WAS STATED BY THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, TODAY (MONDAY) AT A SYMPOSIUM ON PERSPECTIVES OF SUPPLY AND USE OF FUELS IN HONG KONG.

MRS CHAN SAID HONG KONG HAD TO LOOK FOR CLEANER FUELS AND THE GOVERNMENT ENCOURAGED THE USE OF SUCH FUELS FOR THE TERRITORY’S LONGTERM INTEREST.

"WE ARE MOVING IN THAT DIRECTION," SHE SAID, ADDING THAT THE FIRST PHASE OF A NEW THERMAL POWER STATION WOULD BE COMMISSIONED AT BLACK POINT, TUEN MUN IN 1996.

COMBINED CYCLE GENERATING UNITS WHICH CAN ACHIEVE HIGHER THERMAL EFFICIENCY WILL BE INSTALLED IN THE NEW POWER STATION. THE UNITS WILL BE FUELLED BY NATURAL GAS, A MUCH CLEANER FUEL THAN COAL AND OIL, FROM A GAS FIELD OFF HAINAN ISLAND.

SHE SAID THIS MODE OF ELECTRICITY GENERATING WOULD BRING SIGNIFICANT ENVIRONMENTAL BENEFITS AND ALSO ECONOMICALLY ATTRACTIVE.

TURNING TO THE GOVERNMENT’S POLICY TOWARDS THE SUPPLY AND USE OF FUELS, MRS CHAN SAID THE GOVERNMENT HAI) TO ENSURE THAT HONG KONG HAD SUFFICIENT FUEL AVAILABLE AT ANY TIME TO MEET MINIMUM REQUIREMENTS IN THE DIFFERENT SECTORS OF THE ECONOMY FOR A REASONABLE PERIOD AHEAD.

IT ALSO HAD TO ENSURE THAT FUELS WERE USED WITH DUE REGARD TO INDUSTRIAL AND PUBLIC SAFETY AND ENVIRONMENTAL PROTECTION OBJECTIVES.

/"TO FACILITATE .......

MONDAY, MARCH 1, 1993

"TO FACILITATE IMPLEMENTATION OF THIS POLICY, THE GOVERNMENT MAKES AVAILABLE THE NECESSARY LANI), PROVIDES BASIC INFRASTRUCTURE, ARRANGES WITH FUEL SUPPLIERS FOR THE MAINTENANCE OF MINIMUM LEVELS OF RESERVES OF CERTAIN FUELS OF STRATEGIC IMPORTANCE AND LAYS DOWN A REGULATORY FRAMEWORK FOR THE SAFE AND ENV1RONMENTALLY ACCEPTABLE STORAGE, DISTRIBUTION AND USE OF FUELS," SHE SAID.

SHE SAID ALTHOUGH THE GOVERNMENT AVOIDED INTERFERING IN THE DAY-TO-DAY BUSINESS OPERATIONS OF FUEL SUPPLIERS, IT DID MONITOR CLOSELY THE SUPPLY, CONSUMPTION AND PRICES OF VARIOUS TYPES OF FUEL FOR ECONOMIC ANALYSIS PURPOSES.

"IT WOULD ONLY BE IN THE EVENT OF A MAJOR DISRUPTION TO SUPPLY - ONE LIKELY TO HAVE SIGNIFICANT IMPLICATIONS FOR THE ECONOMY AND THE COMMUNITY - THAT THE GOVERNMENT WOULD CONSIDER INVOKING RESERVE POWERS TO CONTROL FUEL SUPPLY AND DISTRIBUTION," MRS CHAN SAID.

SHE SAID IN 1982 HONG KONG’S TWO POWER COMPANIES, WITH THE SUPPORT OF THE GOVERNMENT, BEGAN TO SWITCH FROM OIL TO COAL AS A FUEL FOR POWER GENERATION.

MRS CHAN SAID CONSIDERABLE SAVINGS IN FUEL COSTS HAD BEEN ACHIEVED IN RECENT YEARS AFTER THE TWO POWER COMPANIES SWITCHED TO COAL, WHICH REMAINED CHEAPER THAN OIL ON AN EQUIVALENT HEAT BASIS.

"THIS HAS BEEN OF GREAT BENEFIT TO CONSUMERS IN THAT ELECTRICITY TARIFFS ARE NOW MUCH LOWER THAN THOSE IN 1983 IN REAL TERMS," SHE SAID.

"THE MUCH REDUCED DEPENDENCE ON OIL HAS BROUGHT ABOUT A HIGHER DEGREE OF SECURITY OF THE ELECTRICITY SUPPLY, WHICH IS IMPORTANT CONSIDERING THAT ELECTRICITY ACCOUNTS FOR ABOUT 38% OF THE TOTAL ENERGY CONSUMED TN HONG KONG," SHE ADDED.

NOTING THAT HONG KONG SHARED THE INCREASING GLOBAL CONCERN OVER THE THREAT TO THE ENVIRONMENT POSED BY THE BURNING OF FOSSIL FUELS, MRS CHAN SAID MUCH WORK HAD ALREADY BEEN DONE BY THE POWER COMPANIES AND THE GOVERNMENT TO MINIMISE THE ENVIRONMENTAL IMPACT OF SUCH EMISSIONS FROM EXISTING POWER STATIONS.

"ALL NEW GENERATING UNITS FUELLED BY COAL OR OIL WITH A HIGH SULPHUR CONTENT ARE REQUIRED TO BE FITTED WITH FLUE GAS DESULPHURISATION FACILITIES, WHICH ARE ABLE TO REMOVE 90% OF THE SULPHUR DIOXIDE PRODUCED BEFORE DISCHARGE INTO THE ATMOSPHERE.

"IN ADDITION, THEY MUST EM IT REDUCED LEVELS OF NITROGEN OXIDES. THESE POLLUTION CONTROL MEASURES HOWEVER INVOLVE SUBSTANTIAL CAPITAL, OPERATION AND MAINTENANCE COSTS," SHE SAID.

MRS CHAN STRESSED THAT PROTECTING THE ENVIRONMENT WAS NOT JUST THE RESPONSIBILITY OF THE GOVERNMENT.

IT REQUIRES THE COMBINED EFFORTS OF EVERYONE IN THE COMMUNITY FROM THE SUPPLIERS TO THE CONSUMERS.

/CONSUMERS NEED .......

MONDAY. MARCH 1, 1993

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CONSUMERS NEED TO ECONOMISE IN THEIR. USE OF ENERGY WHILE SUPPLIERS NEED TO PRODUCE MORE EFFICIENTLY.

"OUR PLANNING AND POLICY FORMULATION MUST STRIKE AN APPROPRIATE BALANCE BETWEEN ECONOMIC AND ENVJRONMENTAL PRIORITIES SO THAT WE CAN ADDRESS ENVIRONMENTAL CONCERNS IN WAYS THAT DO NOT PREJUDICE OUR ECONOMIC GROWTH," SHE SAID.

A LESSON LEARNED FROM THE OIL CRISES OF THE PAST, NOW REINFORCED BY ENVIRONMENTAL CONCERNS WAS HONG KONG MUST DO MORE TO CONSERVE ENERGY AND USE IT MORE EFFICIENTLY, MRS CHAN SAID.

"ENERGY CONSERVATION AND EFFICIENCY HAVE BECOME IMPORTANT ECONOMIC AND ENVIRONMENTAL PROTECTION IMPERATIVES. ENERGY SAVING MEASURES HAVE BEEN ADOPTED, AND ARE ACTIVELY PROMOTED, BY THE GOVERNMENT.

"THERE IS NO DOUBT THAT THE GOVERNMENT AND THE COMMUNITY SHOULD TAKE AN ACTIVE APPROACH TO ENERGY EFFICIENCY,” SHE STRESSED.

"TO THIS END, THE ENERGY EFFICIENCY ADVISORY COMMITTEE WAS FORMED IN APRIL 1991 TO ADVISE THE GOVERNMENT ON HOW TO BRING ABOUT IMPROVEMENTS IN ENERGY EFFICIENCY THROUGHOUT HONG KONG AND TO FORMULATE A COMPREHENSIVE ENERGY EFFICIENCY POLICY FOR THE LONGER TERM.

"THE COMMITTEE HAS DRAWN UP A PROGRAMME FOR THE IMPLEMENTATION OR FURTHER CONSIDERATION OF VARIOUS PROPOSALS TO PROMOTE THE EFFICIENT USE OF ENERGY.

"A PUBLIC EDUCATION CAMPAIGN ON ENERGY EFFICIENCY WILL COMMENCE IN MARCH. A SERIES OF ADVISORY NOTES ON GOOD ENERGY HOUSEKEEPING WILL BE PUBLISHED TO ENHANCE PUBLIC AWARENESS OF GOOD HOUSEKEEPING AND MAINTENANCE PRACTICES."

THIS IS IN ADDITION TO THE EFFORTS MADE BY THE UTILITY COMPANIES THEMSELVES. THE FIRST OF THESE, THE ADVISORY NOTE ON ENERGY EFFICIENCY IN EXISTING COMMERCIAL BUILDINGS IN HONG KONG WILL BE DISTRIBUTED TO ALL BUILDING MANAGERS IN PARALLEL WITH THE PUBLIC EDUCATION CAMPAIGN.

A SEPARATE ADVISORY NOTE ON ENERGY EFFICIENCY IN RESIDENTIAL BUILDINGS IS EXPECTED TO BE ISSUED BY THE END OF THIS YEAR, SHE SAID.

0

/9 .........

MONDAY, MARCH 1, 1993

9

RECOMMENDATIONS ON SAFETY MEASURES FOR HONG KONG COLISEUM

*****

CERTIFIED MEDICAL PERSONNEL WILL BE PRESENT DURING FUTURE PERFORMANCES INVOLVING A SIZEABLE AUDIENCE IN THE HONG KONG COLISEUM (HKC) AND REQUESTS FOR SPECIAL GIMMICKS INVOLVING AUDIENCE PARTICIPATION WILL BE CAREFULLY SCRUTINISED AND MONITORED BY THE STADIUM MANAGEMENT.

SUCH MEASURES WERE RECOMMENDED BY THE URBAN SERVICES DEPARTMENT TO THE URBAN COUNCIL’S ENTERTAINMENT SELECT COMMITTEE AT TODAY’S (MONDAY) MEETING AS A RESULT OF AN INCIDENT TN WHICH A 17-YEAR-OLD MAN WAS FOUND COLLAPSED DURING A POP CONCERT ON FEBRUARY 13. THE YOUNG MAN DIED IN HOSPITAL ON FEBRUARY 21.

REPORTING ON THE TRAGEDY WHICH OCCURRED DURING ONE OF THE SHOWS IN THE "ANDY LAU IN CONCERT", ASSISTANT DIRECTOR, URBAN SERVICES DEPARTMENT, MR PANG CHUNG, TOLD THE MEETING THAT HIRERS OF THE HONG KONG COLISEUM WOULD BE ASKED TO MAKE ARRANGEMENTS FOR FIRST AID PERSONNEL TO BE ON DUTY DURING SIMILAR EVENTS TN FUTURE.

"PUBLIC ANNOUNCEMENTS ON Al DI ENCE SAFETY WILL BF. MADE BEFORE THE PERFORMANCES WHILE ADDITIONAL SIGNAGES ON SAFETY MEASURES WILL BE PUT UP IN MORE PROMINENT POSITIONS NEAR THE STAGE," HE SAID.

THE STADIUM MANAGEMENT WILL ('ONT 1 NUE ITS REGULAR CONSULTATIONS WITH THE HIRERS ON SPECIAL EFFECTS AND SAFETY ASPECTS PROPOSED DURING THE PERFORMANCES.

HE TOLD THE MEETING THAT IMMEDIATELY AFTER THE INCIDENT ON FEBRUARY 13, THE GIMMICK REGARDING RELEASING BALLOONS FROM THE CEILING HAD BEEN SUSPENDED AND THE HIRER HAD AGREED TO THE REQUEST TO ENGAGE THE SERVICES OF ST JOHN AMBULANCE BRIGADE FROM FEBRUARY 16 UNTIL THE CONCERT ENDED ON FEBRUARY 22.

"MORE BILINGUAL WARNING SIGNAGES HAD BEEN PUT UP NEAR THE STAGE WHILE SECURITY GUARDS AND USHERS HAD BEEN ALERTED TO EXERCISE TIGHTER CROWD CONTROL SINCE THE INCIDENT," MR PANG SAID.

IN LIGHT OF THE LAN KWAI FONG INCIDENT ON NEW YEAR’S EVE, STAFF OF THE HKC HAD BEEN REMINDED TO TAKE EXTRA PRECAUTIONS AND MEASURES TO ENSURE PUBLIC SAFETY, MR PANG SAID, ADDING THAT SEVERAL OPERATIONAL MEETINGS HAI) BEEN HELD WITH THE HIRER BEFORE THE "ANDY LAU IN CONCERT".

HE ALSO SAID A REQUEST FOR ANDY LAU TO GO AROUND THE GANGWAY TO SHAKE HANDS WITH THE AUDIENCE DURING THE PERFORMANCES HAD BEEN REJECTED BY THE STADIUM MANAGEMENT AS Cl’ WAS CONSIDERED THAT THIS ACTION MIGHT CREATE A CHAOTIC SITUATION AND COMMOTION AMONG THE AUDIENCE.

THE REQUEST FOR THE RELEASE OF BALLOONS FROM THE CEILING WAS ONLY AGREED BY THE STADIUM MANAGEMENT ON THE CONDITION THAT THEY WERE DROPPED FROM ABOVE THE MAIN GANGWAY TAKING INTO CONSIDERATION THE SAFETY ASPECTS.

/RECALLING THE .......

MONDAY, MARCH 1, 1993

RECALLING THE UNFORTUNATE INC’I PENT, MR PANG SAID IT WAS ONLY FIVE MINUTES INTO THE SHOW THAT EVEN I NG WHEN THE BALLOONS WERE RELEASED FROM THE CEILING AND SOME OF THE AUDIENCE LEFT THEIR SEATS TO GO DOWN TO THE GANGWAY TO PICK UP THE BALLOONS.

A MAN WAS FOUND LYING UNCONSCIOUS NEAR AISLE 41 AFTER THE AUDIENCE RETURNED TO THEIR SEATS AND THE AMBULANCE SERVICE WAS SUMMONED IMMEDIATELY, HE SAID.

"MEANWHILE, A SECURITY GUARD WHO IS A PHYSIOTHERAPIST AND IS

CAPABLE OF GIVING FIRST AID TREATMENT APPLIED MOUTH-TO-MOUTH RESUSCITATION AND HEART PRESSES TO THE YOUNG MAN," MR PANG SAID.

HE WAS SUBSEQUENTLY TAKEN TO QUEEN ELIZABETH HOSPITAL WHERE HE DIED EIGHT DAYS LATER.

1992 DOMESTIC EXPORT STATISTICS CLASSIFIED BY INDUSTRIAL ORIGIN * * ♦ t *

LAST YEAR, THE THREE MAJOR INDUSTRY GROUPS OF TEXTILES, WEARING APPAREL AND CONSUMER ELECTRICAL AND ELECTRONIC PRODUCTS TOGETHER ACCOUNTED FOR 57% OF HONG KONG’S TOTAL DOMESTIC EXPORTS OF MANUFACTURED GOODS, ACCORDING TO STATISTICS RELEASED TODAY (MONDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

DOMESTIC EXPORTS OF TEXTILES INCREASED BY 4% TO $51.8 BILLION IN 1992 AS COMPARED WITH 1991. ON THE OTHER HAND, DOMESTIC EXPORTS OF WEARING APPAREL DECREASED BY 2% TO $42.8 BILLION IN 1992; THOSE OF CONSUMER ELECTRICAL AND ELECTRONIC PRODUCTS ALSO DROPPED BY 4% TO $38.2 BILLION.

AS FOR THE OTHER INDUSTRY GROUPS, MORE SIGNIFICANT ABSOLUTE INCREASES IN THE VALUE OF DOMESTIC EXPORTS WERE FOUND IN THE GROUPS OF MACHINERY, EQUIPMENT, APPARATUS, PARTS AND COMPONENTS (+$3,401 MILLION OR +15%); PAPER AND PAPER PRODUCTS, PRINTING AND PUBLISHING (+$875 MILLION OR +13%); AND CHEMICALS AND CHEMICAL PRODUCTS (+$306 MILLION OR +5%).

ON THE OTHER HAND, INDUSTRY GROUPS WHICH RECORDED THE MORE NOTABLE ABSOLUTE DECREASES IN THE VALUE OF DOMESTIC EXPORTS INCLUDED PROFESSIONAL AND OPTICAL EQUIPMENT (-$1,563 MILLION OR -8%); AND PLASTIC PRODUCTS (-$1,389 MILLION OR -17%). FOR THE FOOTWEAR AND TRANSPORT EQUIPMENT INDUSTRIES, ALTHOUGH THE ABSOLUTE VALUES OF THE CHANGES WERE NOT AS LARGE, MARKED DECLINES OF 30% AND 25% RESPECTIVELY WERE REGISTERED.

/THE APOVE

MONDAY. MARCH 1, 1993

11

THE ABOVE STATISTICS ON DOMESTIC EXPORT.S ANALYSED BY INDUSTRIAL ORIGIN ARE DERIVED BY RE-GROUPING THE MERCHANDISE EXPORT ITEMS ORIGINALLY GROUPED UNDER THE EXTERNAL TRADE CLASSIFICATION SYSTEM ACCORDING TO THE INDUSTRIES IN WHICH THESE MERCHANDISE ITEMS ARE NORMALLY PRODUCED. TRANSACTIONS IN GOLD AND SPECIE ARE EXCLUDED.

THE INDUSTRIAL CLASSIFICATION USED IS THE HONG KONG STANDARD INDUSTRIAL CLASSIFICATION (HSIC). THE HS1C IS TO BE DISTINGUISHED FROM THE UNITED NATIONS STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC) USED IN THE REGULAR TRADE STATISTICS REPORTS.

IN COMPARISON, THE HSIC IS MORE RELATED TO PRODUCTION PROCESSES WHEREAS THE SITC IS MORE GEARED 1'0 END USES OF PRODUCTS.

CAUTION SHOULD BE TAKEN WHEN REFERRING TO THESE DOMESTIC EXPORT STATISTICS CLASSIFIED BY INDUSTRIAL ORIGIN. THERE MAY BE SEVERAL INTERMEDIATE PROCESSING STAGES IN THE PRODUCTION OF CERTAIN MERCHANDISE EXPORT ITEMS.

IN COMPILING THE ABOVE STATISTICS, THE TOTAL VALUE OF SUCH AN ITEM HAS HOWEVER BEEN WHOLLY RELATED TO THE INDUSTRY IN WHICH THE ITEM IS FINALLY PRODUCED.

DOMESTIC EXPORT STATISTICS OF A PARTICULAR INDUSTRY PRODUCED ABOVE MAY INCLUDE PRODUCTS WHICH ARE PRODUCED AS SECONDARY PRODUCTS BY ESTABLISHMENTS BELONGING TO OTHER INDUSTRIES.

A TABLE SHOWING MORE DETAILED BREAKDOWNS OF SIMILAR STATISTICS FOR MAJOR MANUFACTURING INDUSTRIES IS ALSO INCLUDED IN THE REPORT ’’HONG KONG EXTERNAL TRADE, DECEMBER 1992”.

NOTE TO EDITORS:

FURTHER DETAILS OF MERCHANDISE DOMESTIC EXPORT STATISTICS CLASSIFIED BY INDUSTRIAL ORIGIN MAY BE FOUND IN A TABLE, WHICH IS OBTAINABLE FROM THE INDUSTRIAL RESEARCH SECTION OF THE CENSUS AND STATISTICS DEPARTMENT (TEL NO. 839 3223).

/DOMESTIC EXPORTS ........

12

MONDAY. MARCH 1., 1993

Domestic exports of manufactured goods classified by industrial origin for the whole year of 1992

(Value in HK$ million)

Industrial origin of the commodities exported Merchandise domestic exports

1992 whole year 1991 whole year Value change % change

Food 2,278 2,053 +224 +10.9

Beverages 437 415 +23 +5.4

Tobacco manufactures 2,610 2,613 -2 -0.1

Textiles (including knitting) 51,777 49,590 +2,187 +4.4

Wearing apparel, except footwear 42,831 43,805 -974 -2.2

Leather and leather products, except footwear and wearing apparel 1,718 1,537 +181 +11.8

Footwear, except rubber, plastic and wooden footwear 402 572 -169 -29.6

Wood and cork products, furniture and fixtures 488 550 -63 -11.4

Paper and paper products, printing and publishing 7,673 6,798 +875 + 12.9

Chemicals and chemical products 6,552 6,246 +306 +4.9

Products of petroleum and coal 14 12 +2 + 18.7

Rubber products 120 114 +6 +5.2

Plastic products 6,860 8,249 -1,389 -16.8

Non-metallic mineral products, except products of petroleum and coal 465 484 -20 -4.1

Basic metals and fabricated metal products 9,513 9,564 -51 -0.5

Machinery, equipment, apparatus, parts and components 25,873 22,473 +3,401 + 15.1

Consumer electrical and electronic products 38,224 39,811 -1,586 -4.0

Transport equipment 204 270 -66 -24.6

Professional and optical equipment 18,546 20,109 -1,563 -7.8

Other manufacturing industries 14,823 13,816 + 1,007 +7.3

Total 231,406 229,080 +2,326 +1.0

Notes : 1. Individual entries of a column may not add up exactly to the corresponding total due to rounding. All percentage changes are calculated from unrounded figures.

2. The above statistics are derived by re-grouping the merchandise export items under the external trade classification system according to the industries in which these items are normally produced. As from 1992, the Third Revision of the Standard International Trade Classification (SITC R3) has been adopted in place of the Second Revision (SITC R2) for the classification of trade statistics. To facilitate year-on-year comparison, statistics for the same period in 1991 have been re-compiled in terms of SITC R3 as far as possible. The above statistics may not be strictly comparable with those published for earlier years due to the change in trade classification.

Industrial Research Section, Census & Statistics Department, Hong Kong.

Tel. : 839 3223

March 1993

MONDAY, MARCH 1, 1993

13

WATER SUPPLIES DEPARTMENT PLEDGES OPENNESS AND ACCOUNTABILITY *****

THE WATER SUPPLIES DEPARTMENT TODAY (MONDAY) LAUNCHED A PERFORMANCE PLEDGES SCHEME TO PROVIDE "A RELIABLE AND CUSTOMER-ORIENTED SERVICES IN A CLEAN AND GOOD ENVIRONMENT".

ANNOUNCING DETAILS OF THE SCHEME AT A PRESS CONFERENCE, THE DIRECTOR OF WATER SUPPLIES, MR HU MAN-SHIU, POINTED OUT THAT THE OBJECTIVE OF THE SCHEME WAS TO IMPROVE SERVICES TO CUSTOMERS BY "ENHANCING OPENNESS AND ACCOUNTABILITY AND BY DEVELOPING A CLIENT-BASED CULTURE" IN HIS DEPARTMENT.

"THE PUBLIC WILL KNOW, THROUGH OUR PERFORMANCE PLEDGES, WHAT ARE THE ESSENTIAL SERVICES THAT WE PROVIDE; WHAT STANDARDS HAVE BEEN SET; WHETHER THESE STANDARDS HAVE BEEN ACHIEVED; AND WHAT TO DO WHEN THEY ARE NOT.

"OUR STAFF WILL ALSO PLACE EMPHASIS ON PROVIDING SERVICES IN A COURTEOUS AND HELPFUL MANNER," HE ADDED.

THE PERFORMANCE PLEDGES COVER MAINLY ESSENTIAL SERVICES IN RELATION TO WATER ACCOUNTS AND DAILY WATER SUPPLY MATTERS, AND ARE BASED ON CURRENT ACHIEVABLE TARGETS HAVING REGARD TO AVAILABLE RESOURCES, STAFF SUGGESTIONS AND OPERATIONAL EXPERIENCE, MR HU SAID.

IN THE WATER ACCOUNT CATEGORY, THE PLEDGES COVER TARGET TURNROUND TIMES FOR SUCH SERVICES AS APPLICATION FOR TAKING UP CONSUMERSHIP, REFUND OF WATER DEPOSIT, AND APPLICATION FOR METER TEST.

FOR COUNTER SERVICES, TARGETS ARE SET IN QUEUING TIME EXPECTED.

FOR DAILY WATER SUPPLY SERVICES, THE PLEDGES SET THE TARGET ACHIEVEMENTS FOR ESSENTIAL MATTERS, SUCH AS WATER QUALITY, ACCURACY OF WATER METERS, AND RESPONSE TIME FOR FAULT COMPLAINTS, MR HU ADDED.

UNDER THE SCHEME, NEW ARRANGEMENTS HAVE ALREADY BEEN PUT INTO PRACTICE SINCE THE END OF LAST YEAR FOR HANDLING PUBLIC ENQUIRIES AND COMPLAINTS, MR HU SAID.

"IN DEALING WITH THE PUBLIC, OUR STAFF ARK IDENTIFYING THEMSELVES BY NAMES. WE ARE ANSWERING CORRESPONDENCES FROM THE PUBLIC WITH AT LEAST AN INTERIM REPLY WITHIN 10 WORKING DAYS.

"AT THE SAME TIME, WE ARE REVIEWING FORMS AND OTHER DOCUMENTS DEALING WITH THE PUBLIC TO ENSURE THAT THEY ARE NECESSARY AND ARE AS SIMPLE AND USER-FRIENDLY AS POSSIBLE."

MR HU SAID UNDER THE SCHEME, COMPLAINT CHANNELS HAD BEEN STREAMLINED.

IN THE EVENT OF CERTAIN TARGETS NOT BEING MET, HE SAID, THE PUBLIC COULD ASK FOR AN EXPLANATION BY WRITING TO THE DEPARTMENT’S EXECUTIVE OFFICER/ENQUIRIES FOR WATER ACCOUNT MATTERS OR TO THE CUSTOMER RELATIONS OFFICER FOR DAILY WATER SUPPLY MATTERS.

/THE ADDRESSES .......

MONDAY. MARCH 1, 1993

- 14 -

THE ADDRESSES OF THESE OFFICERS ARE SHOWN IN THE LEAFLET CONTAINING THE PERFORMANCE PLEDGES.

THE PUBLIC MAY USE THE DEPARTMENT’S ENQUIRY HOTLINE AND APPROACH ONE OF ITS SEVEN CUSTOMER ENQUIRY CENTRES FOR GENERAL ENQUIRIES AND COMPLAINTS ON MATTERS RELATING TO WATER ACCOUNTS.

FOR GENERAL FAULT COMPLAINTS AND ENQUIRIES, THE PUBLIC MAY USE TWO 24-HOUR COMPLAINT HOTLINES, ONE FOR HONG KONG AND THE OUTLYING ISLANDS, AND THE OTHER FOR KOWLOON AND THE NEW TERRITORIES.

THE HOTLINE NUMBERS AND THE ADDRESSES OF THE CUSTOMER ENQUIRY CENTRES ARE ALSO CONTAINED IN THE LEAFLET.

MR HU ADDED THAT THE ENQUIRY SERVICE WOULD BE FURTHER ENHANCED BY A 24-HOUR COMPUTERISED TELEPHONE INFORMATION SYSTEM TO BE INSTALLED LATER THIS YEAR.

’’UNDER THIS SYSTEM, THE PUBLIC CAN OBTAIN INFORMATION ON THE MORE COMMON AND ROUTINE MATTERS ABOUT WATER ACCOUNTS AND DAILY WATER SUPPLY MORE QUICKLY ANY TIME OF THE DAY,” HE SAID.

TO PROVIDE A MORE PLEASANT ENVIRONMENT TO CUSTOMERS, IMPROVEMENT WORKS TO PUBLIC SERVICE AREAS, SUCH AS CUSTOMER ENQUIRY CENTRES, WILL BE CARRIED OUT PROGRESSIVELY IN THE NEAR FUTURE, MR HU SAID.

- 0-----------

EEC ANNOUNCES 1993 GSP SCHEME *****

A COMMERCIAL INFORMATION CIRCULAR PUBLISHED BY THE TRADE DEPARTMENT TODAY (MONDAY) SETS OUT THE DETAILED ARRANGEMENTS OF THE EUROPEAN ECONOMIC COMMUNITY (EEC) GENERALISED SYSTEM OF PREFERENCES (GSP) SCHEME FOR 1993, WHICH IS, IN ESSENCE, A STRAIGHT ROLL-OVER OF THE 1992 SCHEME, WITH SOME MINOR CHANGES.

IMPORTS INTO THE EEC UNDER THE 1993 GSP SCHEME OF CERTAIN PRODUCTS FALLING WITHIN CHAPTER 1 TO 97 OF THE COMMON CUSTOMS TARIFF FROM DESIGNATED DEVELOPING COUNTRIES AND TERRITORIES, INCLUDING HONG KONG, ARE ACCORDED PREFERENTIAL TREATMENT OF REDUCED OR ZERO RATES OF DUTY.

THE 1993 EEC GSP INCLUDES A NEW PROVISION WHICH STATES: ’’WHEN PRODUCTS COVERED BY THE SCHEME BECOME THE SUBJECT OF ANTI-DUMPING MEASURES, THE PRODUCTS AND COUNTRIES CONCERNED SHALL NOT BE GRANTED ACCESS TO PREFERENCES UNLESS IT IS ESTABLISHED THAT THE SAID MEASURES HAVE BEEN BASED ON A PRICE WHICH TAKES INTO CONSIDERATION THE PREFERENTIAL TARIFF ARRANGEMENTS ACCORDED TO THE COUNTRY CONCERNED.”

A SPOKESMAN FOR THE TRADE DEPARTMENT SAID THE DEPARTMENT WOULD ISSUE SEPARATE CIRCULARS TO INFORM TRADERS SHOULD PRODUCTS ORIGINATING FROM HONG KONG BE EXCLUDED FROM THE EEC GSP.

/THERE IS .......

MONDAY, MARCH 1, 1993

15

THERE IS NO CHANGE IN PREFERENTIAL PROVISIONS FOR TEXTILE PRODUCTS IN THE 1993 SCHEME WHEN COMPARED WITH THOSE FOR 1992, EXCEPT THAT THE PREVIOUS FRAMEWORK OF NATIONAL TARIFF QUOTAS WILL BE REPLACED BY COMMUNITY-WIDE, FIXED DUTY-FREE AMOUNTS.

NORMAL DUTY WILL BE RE-INTRODUCED AS SOON AS THE FIXED

DUTY-FREE AMOUNT IS EXHAUSTED OR MAY BE RE-INTRODUCED AT ANY TIME

AFTER THE TARIFF CEILING HAS BEEN REACHED.

-----0--------

COURT OF APPEAL JUDGE APPOINTED

*****

THE JUDICIARY ANNOUNCED TODAY (MONDAY) THAT MR JUSTICE BOKHARY HAS BEEN APPOINTED A COURT OF APPEAL JUDGE WITH EFFECT FROM TODAY (MONDAY).

HE FILLS THE VACANCY WHICH AROSE UPON THE RETIREMENT OF SIR DEREK CONS.

MR JUSTICE BOKHARY WAS BORN IN HONG KONG ON OCTOBER 25, 1947

AND ATTENDED ST FRANCIS XAVIER’S COLLEGE AND KING GEORGE V SCHOOL.

HE RECEIVED HIS LEGAL EDUCATION IN THE UNITED KINGDOM AND WAS CALLED TO THE BAR OF ENGLAND AND WALES BY THE HONOURABLE SOCIETY OF THE MIDDLE TEMPLE IN 1970.

IN 1971, MR JUSTICE BOKHARY WAS ADMITTED TO PRACTISE AS A BARRISTER IN HONG KONG AND APPOINTED QUEEN’S COUNSEL IN 1983. HE WAS THE HON SECRETARY AND TREASURER OF THE BAR FROM 1977 TO 1979 AND A MEMBER OF THE BAR COMMITTEE IN 1976 AND FROM 1980 TO 1984.

HE WAS APPOINTED TO THE HIGH COURT IN MARCH 1989. HE RECENTLY CONDUCTED AN INDEPENDENT INQUIRY INTO THE LAN KWAI FONG TRAGEDY ON NEW YEAR’S DAY.

MR JUSTICE BOKHARY IS MARRIED TO JUDGE VERINA BOKHARY. THEY HAVE THREE DAUGHTERS.

----0------

CUSTOMS REVISE SCALE OF REWARDS

*****

THE CUSTOMS AND EXCISE DEPARTMENT ANNOUNCED TODAY (MONDAY) THAT THE SCALE OF REWARDS BEING OFFERED UNDER THE DUTIABLE COMMODITIES AND IMPORT AND EXPORT ORDINANCES WOULD BE INCREASED.

A SPOKESMAN FOR THE CUSTOMS AND EXCISE DEPARTMENT SAID THE EXISTING SCALE OF REWARDS HAD BEEN FIXED 10 YEARS AGO AND HENCE HAD BECOME UNATTRACTIVE TO INFORMERS.

/"TN VIEW.........

MONDAY, MARCH 1, 1993

16

“IN VIEW OF THE CURRENT PREVALENCE OF ORGANISED SMUGGLING ACTIVITIES AND INFLATION OVER THE PAST 10 YEARS, IT HAS BEEN DECIDED TO INCREASE THE SCALE OF REWARDS TO REGAIN ITS INDUCEMENT VALUE,” THE SPOKESMAN SAID.

THE MOST SIGNIFICANT INCREASES ARE THOSE REWARDS LEADING TO CONVICTION AND FORFEITURE OF DUTIABLE CIGARETTES AND DIESEL OIL.

AS FROM TODAY, REWARDS FOR INFORMATION ABOUT DUTIABLE CIGARETTES WOULD BE INCREASED BY 350%, AND DIESEL OIL BY 200%.

INFORMATION ON SMUGGLING OFFENCES MAY BE REWARDED BY UP TO A MAXIMUM OF $100,000 DEPENDING ON THE VALUE OF GOODS SEIZED.

’’THE WORLD OF SMUGGLING HAS CHANGED DRAMATICALLY IN RECENT YEARS AND IT IS NECESSARY TO ADOPT EVERY POSSIBLE ENFORCEMENT MEASURE TO MEET THE CHANGE,” THE SPOKESMAN SAID.

HE SAID INFORMERS MAY TELEPHONE THE DEPARTMENT’S 24-HOUR HOTLINE ON 545 6182 OR WRITE TO GPO BOX 1166. INFORMATION WILL BE TREATED IN STRICT CONFIDENCE.

------0-------

FS TO DELIVER BUDGET SPEECH ON WEDNESDAY

*****

HONG KONG’S BUDGET FOR THE FINANCIAL YEAR 1993/94 WILL BE PRESENTED TO THE LEGISLATIVE COUNCIL ON WEDNESDAY (MARCH 3).

THE PROCEEDINGS WILL START AT 2.30 PM AND THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, WILL MOVE THE FIRST AND SECOND READINGS OF THE APPROPRIATION BILL 1993, AND OUTLINE THE ESTIMATED REVENUE AND EXPENDITURE FOR 1993/94.

THE HEADS OF EXPENDITURE WERE SET OUT IN THE APPROPRIATION BILL 1993 WHICH WAS PUBLISHED IN THE GAZETTE LAST FRIDAY.

DEBATE ON THE BILL WILL BE ADJOURNED UNTIL MARCH 24 AND 25, WHEN MEMBERS WILL GIVE THEIR VIEWS ON THE BUDGET PROPOSALS.

OFFICIALS WILL GIVE THEIR REPLIES ON MARCH 31.

ON MARCH 17, 18 AND 19, THERE WILL ALSO BE SPECIAL MEETINGS OF THE FINANCE COMMITTEE TO EXAMINE THE DRAFT ESTIMATES OF EXPENDITURE.

ATTENTION NEWS EDITORS:

GIS WILL PROVIDE FACILITIES ON WEDNESDAY (MARCH 3) TO ENABLE MEDIA REPRESENTATIVES TO START WORK EARLY ON THE BUDGET.

/MEDIA MEMBERS .......

MONDAY, MARCH 1, 1993

17

MEDIA MEMBERS WILL BE GIVEN ADVANCE COPIES OK THE BUDGET SPEECH AND ECONOMIC PROSPECTS AT NOON.

THEY MUST STAY IN THE GIS PRESS CONFERENCE ROOM ON THE FIFTH FLOOR OF BEACONSFIELD HOUSE, QUEEN'S ROAD CENTRAL TO WORK ON THEIR COPIES AND WILL NOT BE ALLOWED TO LEAVE UNTIL AFTER THE FINANCIAL SECRETARY HAS CONCLUDED HIS SPEECH.

CONTACTS OF ANY KIND WITH OUTSIDE, SUCH AS TELEPHONE OR COMPUTER LINKS, ARE PROHIBITED DURING THE CLOSED WORKING SESSION. ALSO, MOBILE TELEPHONES WILL NOT BE ALLOWED INTO THE CONFERENCE ROOM.

GOVERNMENT OFFICIALS FROM THE FINANCE BRANCH WILL BE ON HAND TO OFFER HELP TO MEDIA REPRESENTATIVES IN THE CONFERENCE ROOM FROM 12.30 PM. THEY WILL NOT GIVE INTERVIEWS AND THEY SHOULD NOT BE QUOTED.

THE FINANCIAL SECRETARY WILL MEET THE MEDIA AT THE GIS PRESS CONFERENCE ROOM AROUND 4 PM TO ANSWER QUESTIONS RELATING TO THE BUDGET AFTER HIS DELIVERY OF THE SPEECH IN THE LEGCO.

-----0--------

WATER STORAGE FIGURE

* * * * *

STORAGE IN HONG KONG’S RESERVOIRS AT 9 AM TODAY (MONDAY) STOOD AT 53 PER CENT OF CAPACITY OR 310.585 MILLION CUBIC METRES.

THIS TIME LAST YEAR THE RESERVOIRS CONTAINED 183.324 MILLION CUBIC METRES OF WATER, REPRESENTING 31.3 PER CENT OF CAPACITY.

------()------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,505

REVERSAL OF LAF +645

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -340

CLOSING BALANCE IN THE ACCOUNT 1,810

LAF RATE 2.00 B1D/4.00 OFFER TWI 111.2 *+0.|* 1.3.93

/HONG KONG

MONDAY. MARCH 1, 1993

18

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.25 PCT 15 MONTHS 2105 5.50 102.40 3.4 9

1 MONTH 2.58 PCT 18 MONTHS 2408 5.50 101.24 3.53

3 MONTHS 2.83 PCT 21 MONTHS 24 I 1 4.375 101.59 3.69

6 MONTHS 3.02 PCT 24 MONTHS 2502 4.625 101.63 3.92

12 MONTHS 3.39 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 9,456 MN

CLOSED MARCH 1, 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

TUESDAY. MARCH 2, 1993

CONTENTS PAGE NO.

GOVERNOR PROMISES A STATEMENT BEFORE FND OF WEEK .................... 1

JOHN CHAN TO RETIRE FROM PUBLIC SERVICE .............................

A RANGE OF SENIOR POSTINGS ANNOUNCED ................................ 2

SUBSTANTIVE PROMOTIONS FOR FOUR SECRETARIES ......................... 4

WHAT THE BUDGET MEANS FOR YOU ....................................... 5

MONETARY STATISTICS FOR JANUARY ..................................... 5

VICE-PRESIDENTS OF COURT OF APPEAL APPOINTED ........................ 9

TRADE CHIEF CALLS FOR WELL-DISCIPLINED MULTILATERAL TRADE REGIME ... 10

HK AMONG LOWEST MATERNAL MORTALITY RATE ............................. 12

CLEAN AND GREEN PHOTO CONTEST RESULTS ANNOUNCED ..................... 12

TRANSPORT STAMPS WIN AWARD .......................................... 13

FS TO DELIVER BUDGET SPEECH TOMORROW ................................ 14

HONG KONG GOVERNMENT EXCHANGE FUND TENDER RESULTS ................... 15

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .......... 16

TUESDAY, MARCH 2, 1993

GOVERNOR PROMISES A STATEMENT BEFORE END OF WEEK

*****

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, SAID TODAY (TUESDAY) THAT HE WOULD MAKE A STATEMENT BEFORE THE END OF THE WEEK WHICH WOULD SET OUT THE WAY AHEAD REGARDING POLITICAL DEVELOPMENT IN HONG KONG.

SPEAKING TO REPORTERS AFTER THIS MORNING’S EXECUTIVE COUNCIL MEETING, MR PATTEN SAID: "I THINK THERE ARE TWO PARTICULAR SORTS OF REALITY IN RELATION TO THAT WHICH WE ALL HAVE TO RECOGNISE.

’’THE FIRST WAS PUT VERY CLEARLY AND COHERENTLY BY LEADERS OF THE CRC (CO-OPERATIVE RESOURCES CENTRE) DELEGATION IN PEKING WHEN THEY POINTED OUT WHAT THE LEGISLATIVE PROCEDURES ARE HERE IN HONG KONG.

’’THOSE ARE WELL KNOWN TO THE WHOLE COMMUNITY AND I DON’T THINK THAT ANY RESPONSIBLE PERSON IN THE COMMUNITY SUGGESTS THAT THEY SHOULD BE CHANGED BUT THE POSITION WAS VERY WELL EXPLAINED BY CRC LEADERS THEMSELVES.”

ON ANOTHER SORT OF REALITY, MR PATTEN SAID: ”1 DON’T THINK THAT ANYBODY WOULD EXPECT IF TALKS WERE TO TAKE PLACE THAT THE HONG KONG GOVERNMENT OR THE BRITISH GOVERNMENT WOULD REACH ANY AGREEMENT WHICH WE DIDN’T BELIEVE IS ACCEPTABLE TO HONG KONG AND ACCEPTABLE TO THE LEGISLATIVE COUNCIL.

”SO, ANY AGREEMENT THAT WE RECOMMENDED WOULD BE ONE THAT WE BELIEVE WOULD BE ACCEPTABLE TO THE COMMUNITY AND ACCEPTABLE TO LEGCO.”

WHEN ASKED TO COMMENT ON THE CHINESE PREMIER’S REMARKS ABOUT RESUMPTION OF TALKS, THE GOVERNOR SAID HE WELCOMED HIS REMARKS.

"FOR MONTHS NOW, YOU HEARD ME SAY THAT I WILL BE VERY HAPPY TO HAVE DISCUSSIONS AT ANY STAGE WITHOUT PRECONDITION, VERY HAPPY TO HAVE DISCUSSIONS ON THE BASIS OF THE JOINT DECLARATIONS, THE BASIC LAW AND EXCHANGES BETWEEN THE BRITISH AND CHINESE GOVERNMENTS.

"SO, AS FAR AS I AM CONCERNED, A DISCUSSION ON THAT BASIS WITHOUT ANY PRECONDITION IS ABSOLUTELY FINE."

ON DIPLOMATIC EXCHANGES WHICH ARE TAKING PLACE IN PEKING, MR PATTEN SAID: "THESE HAVE BEEN GOING ON FOR SOME TIME AND I HOPE BEING ALWAYS OPTIMISTIC THAT WE WILL SOON SEE THE RESULTS WHICH I AM SURE EVERY SENSIBLE, RATIONAL PERSON CONCERNED ABOUT THE FUTURE OF HONG KONG WOULD LIKE."

0----------

/2 .........

TUESDAY, MARCH 2, 1993

2

JOHN ('HAN TO RETIRE KROM PUBLIC SERVICE *****

THE GOVERNMENT ANNOUNCED TODAY (TUESDAY) THAT MR JOHN CHAN, THE SECRETARY FOR EDUCATION AND MANPOWER, HAD DECIDED TO RETIRE FROM THE PUBLIC SERVICE, FOR PERSONAL REASONS.

MR CHAN WILL REMAIN AS SECRETARY FOR EDUCATION AND MANPOWER, AND AS A MEMBER OF THE EXECUTIVE COUNCIL UNTIL EARLY JUNE, WHEN HE WILL LEAVE THE PUBLIC SERVICE.

COMMENTING ON MR CHAN’S DEPARTURE, THE CHIEF SECRETARY, SIR DAVID FORD, SAID HE WAS VERY SORRY THAT MR CHAN HAD DECIDED TO LEAVE THE ADMINISTRATIVE SERVICE.

"HE HAS MADE A TREMENDOUS CONTRIBUTION IN A NUMBER OF SENIOR POSTS AND HE WILL BE GREATLY MISSED,” SIR DAVID SAID.

"BUT WE WISH HIM ALL GOOD FORTUNE IN THE FUTURE," HE ADDED.

--------0-----------

A RANGE OF SENIOR POSTINGS ANNOUNCED *****

THE GOVERNMENT ANNOUNCED TODA\ (TUESDAY) THE FOLLOWING MOVEMENTS IN PERSONNEL AT SENIOR LEVELS OVER THE NEXT FEW MONTHS:

* MRS ANSON CHAN, CURRENTLY SECRETARY FOR ECONOMIC SERVICES, TO TAKE OVER AS SECRETARY FOR THE CIVIL SERVICE IN EARLY APRIL;

* MR MICHAEL LEUNG, THE CURRENT SECRETARY FOR TRANSPORT, TO TAKE OVER AS SECRETARY FOR EDUCATION AND MANPOWER TN EARLY JUNE;

MR K Y YEUNG, CURRENTLY SECRETARY FOR THE TREASURY, TO TAKE OVER AS SECRETARY FOR TRANSPORT IN EARLY JUNE;

I

* MR DONALD TSANG, THE PRESENT DIRECTOR-GENERAL OF TRADE, TO TAKE OVER AS SECRETARY FOR THE TREASURY IN EARLY MAY;

* MR GORDON SIU, CURRENTLY DIRECTOR, NEW AIRPORT PROJECTS CO-ORDINATION OFFICE (NAPCO) TO TAKE OVER AS SECRETARY FOR ECONOMIC SERVICES IN LATE MARC II ;

* MR TONY MILLER, CURRENTLY DIRECTOR OF MARINE, TO TAKE OVER AS DIRECTOR-GENERAL OF TRADE IN LATE MARCH; AND

* MR BILLY LAM, CURRENTLY DIRECTOR OF GOVERNMENT SUPPLIES, TO TAKE OVER AS DIRECTOR, NAPCO, IN MID-MARCH.

/THE FOLLOWING .......

3

TUESDAY, MARCH 2, 1993

THE FOLLOWING ARE BRIEF BIOGRAPHICAL NOTES ON THESE OFFICERS:

MRS ANSON CHAN FANG, CBE, JP (AGED 53)

JOINED THE CIVIL SERVICE AS AN ADMINISTRATIVE OFFICER IN 1962, MRS CHAN HAS SERVED IN A VARIETY OF POSTS INCLUDING THE FINANCE BRANCH, THE FORMER SOCIAL SERVICES BRANCH AND THE SOCIAL WELFARE DEPARTMENT WHERE SHE SERVED AS DEPUTY DIRECTOR AND LATER DIRECTOR. SHE HAS BEEN SECRETARY FOR ECONOMIC SERVICES SINCE 1987.

MR MICHAEL LEUNG MAN-KIN, UBE, JP (AGED 54)

MR LEUNG JOINED THE CIVIL SERVICE IN 1965. HE INITIALLY SERVED IN A VARIETY OF POSTS INCLUDING THE FINANCE BRANCH AND THE FORMER HOME AFFAIRS DEPARTMENT.

IN 1980, HE BECAME DEPUTY DIRECTOR OF EDUCATION AND IN L984 DIRECTOR OF EDUCATION. FROM 1987 UNTIL THE PRESENT HE HAS BEEN SECRETARY FOR TRANSPORT.

MR YEUNG KAI-YIN, CBE, JP (AGED 52)

MR YEUNG JOINED THE CIVIL SERVICE IN 1962. HE HAS HAD CONSIDERABLE EXPERIENCE IN FINANCIAL MATTERS HAVING SERVED IN THE FINANCE BRANCH AT VARIOUS STAGES OF HIS CAREER, MOST RECENTLY AS SECRETARY FOR THE TREASURY SINCE 1991. PRIOR TO THAT HE HAD BEEN SECRETARY FOR EDUCATION AND MANPOWER, DIRECTOR OF INDUSTRY AND COMMISSIONER, HONG KONG EXPORT CREDIT INSURANCE CORPORATION.

MR DONALD TSANG YAM-KUEN, JP (AGED 18)

MR TSANG JOINED THE CIVIL SERVICE IN 1967. AFTER A VARIETY OF POSTINGS INCLUDING THE FINANCE BRANCH AS AN ASSISTANT FINANCIAL SECRETARY AND THE CIVIL SERVICE BRANCH, AND A SECONDMENT TO THE ASIAN DEVELOPMENT BANK, HE WAS DEPUTY SECRETARY IN THE GENERAL DUTIES BRANCH FROM 1985-89.

HE THEN BECAME DIRECTOR OF ADMINISTRATION BEFORE MOVING TO HIS PRESENT POST AS I) I RECTOR-GENERAL OF TRADE IN 1991.

MR GORDON S UJ KW1NG-CHUE, JP ( AGED 17)

JOINED THE CIVIL SERVICE AS AN EXECUTIVE OFFICER IN 1966, MR STU WAS SUBSEQUENTLY APPOINTED AN ADMINISTRATIVE OFFICER IN 1968.

HE HAS SERVED IN A NUMBER OF DEPARTMENTS AND BRANCHES INCLUDING THE FINANCE BRANCH, THE FORMER SOCIAL SERVICES BRANCH, HIE CIVIL SERVICE BRANCH AND THE FORMER UMELCO OFFICE. HE WAS COMMISSIONER OF TRANSPORT FROM 1989 TO 1992 BEFORE TAKING OVER AS DIRECTOR, NAPCO.

/MP TONY .......

TUESDAY. MARCH 2, 1993

4

MR TONY MILLER, JP (AGED 12)

MR MILLER JOINED THE CIVIL SERVICE AS AN ADMINISTRATIVE OFFICER IN 1972. FOLLOWING A VARIED BACKGROUND OF POSTINGS, HE WAS APPOINTED PRIVATE SECRETARY, GOVERNMENT HOUSE, FROM 1979-81.

HE SERVED IN THE TRADE DEPARTMENT FIRST AS AN ASSISTANT DIRECTOR AND LATER AS A DEPUTY DIRECTOR FROM 1986 TO 1989. FROM 1989-91 HE WAS INFORMATION COORDINATOR, AFTER WHICH HE ASSUMED HIS PRESENT POST OF DIRECTOR OF MARINE.

MR BILLY LAM CHUNG-LUN, JP (AGED 45)

JOINED THE CIVIL SERVICE AS AN \DMINISTRATIVE OFFICER IN 1970, MR LAM HAS HAD A WIDE VARIETY OE POSTINGS INCLUDING THE FORMER HOME AFFAIRS DEPARTMENT, THE CITY AND NEW TERRITORIES ADMINISTRATION, THE DIRECTOR OF THE SAN FRANCISCO ECONOMIC AND TRADE OFFICE AND THE MONETARY AFFAIRS BRANCH. MR LAM IS CURRENTLY THE DIRECTOR OF GOVERNMENT SUPPLIES.

--------0-----------

SUBSTANT IVE PROMOTIONS FOR FOUR SECRETAR IFS * * * * *

THE GOVERNMENT ANNOUNCED SUBSTANTIVE PROMOTIONS TO THE SECRETARIAT, WITH EFFECT FROM MARCH

TODAY (TUESDAY) THE FOLLOWING RANK OF SECRETARY, GOVERNMENT 1, 1993:

* MR CHAU TAK-HAY, SECRETARY FOR TRADE AND INDUSTRY

MR JAMES SO YTU-CHO, SECRETARY FOR RECREATION AND CULTURE

* I HE HON MICHAEL SZE ('IIO-CHEUNG, SECRETARY FOR CONSTITUTIONAL AFFAI RS

MR. ANTHONY G EASON, SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS

--------0-----------

TUESDAY, MARCH 2,

1993

WHAT THE BUDGET MEANS FOR YOU * * * * *

HOW DOES THIS YEAR’S BUDGET AFFECT YOU?

TO FIND OUT, YOU SHOULD READ "WHAT THE 1993 BUDGET MEANS FOR YOU", A FREE, BILINGUAL LEAFLET TO BE ISSUED BY THE GOVERNMENT ON BUDGET DAY.

THE EASY-TO-READ LEAFLET, GIVING BUDGET FACTS AND FIGURES AT A GLANCE, WILL BE ON GENERAL DISTRIBUTION AT THE HONG KONG AND KOWLOON STAR FERRY PIERS AND AT THE MTR STATIONS IN CENTRAL, ADMIRALTY, CAUSEWAY BAY, MONG KOK, WONG TAI SIN AND KWAI FONG.

IT WILL BE AVAILABLE FROM 4 PM TOMORROW (WEDNESDAY), IMMEDIATELY AFTER THE FINANCIAL SECRETARY GIVES HIS BUDGET SPEECH.

MEMBERS OF THE PUBLIC CAN ALSO OBTAIN COPIES FROM THE GOVERNMENT INFORMATION SERVICES PUBLISHING SUB-DIVISION, FRENCH MISSION BUILDING, BATTERY PATH, CENTRAL AND FROM ALL DISTRICT OFFICES BETWEEN 4 PM AND 7 PM.

THIS IS THE FIRST YEAR SUCH A BUDGET GUIDE HAS BEEN ISSUED. IT WILL EXPLAIN, IN SIMPLE TERMS, THE MAJOR POINTS OF THE BUDGET AND HOW THEY AFFECT THE AVERAGE HONG KONG CITIZEN.

MONETARY STATISTICS FOR JANUARY

HONG KONG DOLLAR DEPOSITS WITH AUTHORISED INSTITUTIONS AND HONG KONG DOLLAR MONEY SUPPLY ON ALL DEFINITIONS INCREASED DURING JANUARY 1993, ACCORDING TO STATISTICS PUBLISHED TODAY (TUESDAY) BY THE MONETARY AFFAIRS BRANCH.

REFLECTING THE SEASONAL DEMAND FOR CASH WITH THE APPROACH OF THE CHINESE NEW YEAR, LEGAL TENDER NOTES AND COINS HELD BY THE NONBANK PUBLIC ROSE SIGNIFICANTLY IN JANUARY.

HONG KONG DOLLAR LOANS AND ADVANCES ALSO INCREASED DURING THE

MONTH.

LEGAL TENDER NOTES AND COINS

INFLUENCED BY SEASONAL FACTORS, LEGAL TENDER NOTES AND COINS HELD BY THE NON-BANK PUBLIC ROSE BY 17.2% DURING JANUARY 1993, FOLLOWING A DECREASE OF 0.2% IN NOVEMBER 1992 AND AN INCREASE OF 5.5% IN DECEMBER 1992.

COMPARED WITH A YEAR EARLIER, THEY INCREASED BY 15.6%. HOWEVER, THIS YEAR-ON-YEAR COMPARISON WAS AFFECTED BY THE DIFFERENT TIMING OF THE CHINESE NEW YEAR.

/DEPOSITS

TUESDAY. MARCH 2, 1993

6

DEPOSITS

HONG KONG DOLLAR DEPOSITS WITH AUTHORISED INSTITUTIONS, ADJUSTED TO INCLUDE SWAP DEPOSITS, ROSE BY 1.3% IN JANUARY 1993 FOLLOWING A DECREASE OF 16.8% IN NOVEMBER 1992 AND AN INCREASE OF 1.6% IN DECEMBER 1992.

AMONG THESE DEPOSITS, SAVINGS DEPOSITS AND TIME DEPOSITS INCREASED BY 1.4% AND 2.8% RESPECTIVELY WHILE DEMAND DEPOSITS DECREASED BY 4.8%. YEAR-ON-YEAR, TOTAL HONG KONG DOLLAR DEPOSITS GREW BY 16.0%.

FOREIGN CURRENCY DEPOSITS WITH AUTHORISED INSTITUTIONS INCREASED BY 3.8% IN JANUARY 1993, AFTER A DECREASE OF 0.5% IN NOVEMBER 1992 AND AN INCREASE OF 0.5% IN DECEMBER 1992.

OF THESE DEPOSITS, U.S. DOLLAR DEPOSITS INCREASED BY 8.4% WHILE

NON-U.S. DOLLAR DEPOSITS DECREASED BY 0.3%. YEAR-ON-YEAR, TOTAL

FOREIGN CURRENCY DEPOSITS GREW BY 8.8%.

DURING JANUARY 1993, DEPOSITS IN ALL CURRENCIES WITH LICENSED BANKS AND RESTRICTED LICENCE BANKS INCREASED BY 2.6% AND 6.4% RESPECTIVELY WHILE DEPOSITS WITH DEPOSIT-TAKING COMPANIES DROPPED BY 2.6%.

YEAR-ON-YEAR, DEPOSITS WITH LICENSED DEPOSITS WITH RESTRICTED LICENCE BANKS AND DECLINED BY 3.0% AND 18.2% RESPECTIVELY.

MONEY SUPPLY

BANKS GREW BY 12.9% WHILE DEPOSIT-TAK ING COMPANIES

HK$M1, HK$M2 AND HK$M3 INCREASED BY 3.5%, 2.4% AND 2.4% RESPECTIVELY DURING JANUARY 1993, COMPARED WITH INCREASES OF 3.4%, 1.8% AND 1.9% DURING DECEMBER 1992.

YEAR-ON-YEAR, THESE MONETARY AGGREGATES INCREASED BY 14.8%, 16.3% AND 15.8% RESPECTIVELY.

TOTAL Ml, M2 AND M3 INCREASED BY 4.7%, 3.1% AND 3.1%

RESPECTIVELY IN JANUARY 1993.

THESE COMPARED WITH INCREASES OF 1.9%, 1.4% AND 1.2%

RESPECTIVELY IN DECEMBER 1992.

YEAR-ON-YEAR, THESE MONETARY AGGREGATES INCREASED BY 15.2%, 12.9% AND 11.9% RESPECTIVELY.

LOANS AND ADVANCES

TOTAL OUTSTANDING LOANS AND ADVANCES EXTENDED BY AUTHORISED INSTITUTIONS INCREASED BY 0.5% IN JANUARY 1993, FOLLOWING A DECREASE OF 5.6% IN NOVEMBER 1992 AND AN INCREASE OF 0.3% IN DECEMBER 1992.

/AMONG THESE ........

TUESDAY, MARCH 2, 1993

AMONG THESE LOANS, HONG KONG DOLLAR LOANS INCREASED BY 1.4% WHILE EOREIGN CURRENCY LOANS INCREASED BY 0.01%.

COMPARED WITH A YEAR EARLIER, THESE LOANS INCREASED BY 11.8% AND 7.8% RESPECTIVELY.

LOANS TO FINANCE VISIBLE TRADE OF HONG KONG INCREASED BY 2.5% IN JANUARY 1993, AFTER A DECREASE OF 1.1% IN NOVEMBER 1992 AND AN INCREASE OF 1.5% IN DECEMBER 1992. YEAR-ON-YEAR, SUCH LOANS GREW BY 9.4%.

OTHER LOANS FOR USE IN HONG KONG INCREASED BY 1.5% IN JANUARY 1993, FOLLOWING DECREASES OF 12.3% AND 0.04% IN NOVEMBER AND DECEMBER 1992 RESPECTIVELY. YEAR-ON-YEAR, THESE LOANS INCREASED BY 11.2%.

LOANS FOR USE OUTSIDE HONG KONG DECREASED BY 0.3% IN JANUARY 1993, AFTER A DECREASE OF 1.3% IN NOVEMBER 1992 AND AN INCREASE OF 0.4% IN DECEMBER 1992. YEAR-ON-YEAR, THESE LOANS GREW BY 8.2%.

LOANS TO FINANCE TRADE NOT TOUCH I NG HONG KONG INCREASED BY 1.2% DURING JANUARY 1993, AFTER INCREASES OP 3.3% AND 0.5% IN NOVEMBER AND DECEMBER 1992 RESPECTIVELY. YEAR-ON-YEAR, THESE LOANS INCREASED BY 3.0%.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING LICENSED BANKS AND DEPOSIT-TAKING COMPANIES REMAINED UNCHANGED Al’ 161 AND 1 16 RESPECTIVELY WHILE THE NUMBER OF RESTRICTED LICENCE BANKS INCREASED BY ONE TO 56.

8

TUESDAY, MARCH 2, 1993

TABLE 1 : MONETARY STATISTICS - JANUARY 1993

Jan 1993 Earlier months (% change to Jan 1993) (HKSmn)

Money Supply Ml-HKS 144,303 Dec 1992 139,479 ( 3.5 ) Oct 1992 230,705 ( -37.5 ) Jan 1992 125,705 ( 14.8 )

Foreign currency 18,495 16,078 ( 15.0 ) 16,879 ( 9.6 ) 15,619 ( 18.4 )

Total 162,798 155,557 ( 4.7 ) 247,584 ( -34.2 ) 141,324 ( 15.2 )

M2 - HKS* 744,538 726,992 ( 2.4 ) 851,699 ( -12.6 ) 640,258 ( 16.3 )

Foreign currency* 821,976 791,785 ( 3.8 ) 789,850 ( 4.1 ) 747,115 ( 10.0 )

Total 1,566,514 1,518,777 ( 3.1 ) 1,641,549 ( -4.6 ) 1,387,374 ( 12.9 )

M3 - HKS* 768,082 750,276 ( 2.4 ) 873,362 ( -12.1 ) 663,344 ( 15.8 )

Foreign currency* 855,577 823,989 ( 3.8 ) 823,510 ( 3.9 ) 787,943 ( 8.6 )

Total 1,623,659 1,574,265 ( 3.1 ) 1,696,872 ( -4.3 ) 1,451,287 ( 11.9 )

Notes and coins in circulation 70,341 61,157 ( 15.0 ) 56,748 ( 24.0 ) 61,738 ( 13.9 )

of which held by public 61,171 52,172 ( 17.2 ) 49,588 ( 23.4 ) 52,909 ( 15.6 )

Total Deposits

Total Demand deposits 101,627 103,385 ( -1.7 ) 197,996 ( -48.7 ) 88,414 ( 14.9 )

Total Savings deposits 356,436 353,878 ( 0.7 ) 352,604 ( 1.1 ) 310,750 ( 14.7 )

Total Time deposits with licensed banks 1,029,652 992,126 ( 3.8 ) 1,024,495 ( 0.5 ) 918,439 ( 12.1 )

Total Time deposits with restricted licence banks 36,821 34,611 ( 6.4 ) 34,183 ( 7.7 ) 37,961 ( -3.0 )

Total Time deposits with deposit-taking companies 18,617 19,107 ( -2.6 ) 19,187 ( -3.0 ) 22,750 ( -18.2 )

HKS deposits* 692,941 684,055 ( 1.3 ) 809,604 ( -14.4 ) 597,130 ( 16.0 )

USS deposits* 420,363 387,901 ( 8.4 ) 375,617 ( 11.9 ) 314,617 ( 33.6 )

Other foreign currency deposits* 429,848 431,150 ( -0.3 ) 443,245 ( -3.0 ) 466,567 ( -7.9 )

All deposits 1,543,152 1,503,107 ( 2.7 ) 1,628,466 ( -5.2 ) 1,378,315 ( 12.0 )

Foreign currency swap deposits 59,783 58,690 ( 1.9 ) 52,329 ( 14.2 ) 41,946 ( 42.5 )

Total Loans and advances

To finance H.K.’s visible trade 91,514 89,265 ( 2.5 ) 89,210 ( 2.6 ) 83,623 ( 9.4 )

To finance merchandising trade not touching H.K. 12,026 11,883 ( 1.2 ) 11,450 ( 5.0 ) 11,678 ( 3.0 )

Other loans for use in H.K. 923,694 909,907 ( 1.5 ) 1,037,830 ( -11.0 ) 830,865 ( 11.2 )

Other loans for use outside H.K. 1,415,836 1,420,648 ( -0.3 ) 1,434,577 ( -1.3 ) 1,308,063 ( 8.2 )

Other loans where the place of use is not known 38,102 37,855 ( 0.7 ) 37,266 ( 2.2 ) 40,572 ( -6.1 )

Loans in HKS 823,506 812,087 ( 1.4 ) 937,192 ( -12.1 ) 736,501 ( 11.8 )

Loans in foreign currencies 1,657,665 1,657,471 ( 0.0 ) 1,673,141 ( -0.9 ) 1,538,300 ( 7.8 )

Total loans and advances 2,481,171 2,469,558 ( 0.5 ) 2,610,333 ( 4.9 ) 2,274,801 ( 9.1 )

• Adjusted for foreign currency swap deposits. Starting from April 1991, swap deposits can further be broken down into US dollar and non-US dollar foreign currency swap deposits.

Note : ’Restricted licence banks’ and 'deposit-taking companies’ were known as ’licensed deposit-taking companies' and 'registered deposit-taking companies' respectively before 1 February 1990.

-----------0----------------

/9 ........

TUESDAY, MARCH 2, 1993

9

VICE-PRESIDENTS OF COURT OF APPEAL APPOINTED

******

THE JUDICIARY ANNOUNCED TODAY (TUESDAY) THAT MR JUSTICE KEMPSTER HAS BEEN APPOINTED VICE-PRESIDENT OF THE COURT OF APPEAL, ON THE RETIREMENT OF SIR DEREK CONS. THE APPOINTMENT WILL TAKE EFFECT ON THURSDAY (MARCH 4).

MR JUSTICE POWER WILL ALSO BE APPOINTED VICE-PRESIDENT IN PLACE OF MR JUSTICE FUAD WHO STEPS DOWN FROM THE BENCH ON THE SAME DAY (THURSDAY).

WHEN MR JUSTICE KEMPSTER RETIRES LATER THIS YEAR, MR JUSTICE MACDOUGALL WILL TAKE HIS PLACE AS A VICE-PRESIDENT.

MR JUSTICE KEMPSTER WAS BORN IN ENGLAND IN JUNE 1923 AND EDUCATED AT MILL HILL SCHOOL AND BRASENOSE COLLEGE, OXFORD. HE WAS CALLED TO THE BAR BY THE INNER TEMPLE IN 1949, BECAME A QUEEN’S COUNSEL IN 1969 AND A BENCHER IN 1977.

HE WAS APPOINTED AS A RECORDER (PART-TIME JUDGE) OF THE CROWN COURT IN 1972, AND BETWEEN 1978 AND 1982, WAS FROM TIME TO TIME APPOINTED AS A DEPUTY JUDGE OF THE QUEEN’S BENCH DIVISION OF THE HIGH COURT. HE SERVED AS A MEMBER OF THE BRITISH GOVERNMENT COMMITTEE ON PRIVACY IN 1971.

HE JOINED THE HONG KONG JUDICIARY AS A HIGH COURT JUDGE IN JANUARY 1982 AND WAS APPOINTED A JUSTICE OF APPEAL IN OCTOBER 1984.

MR JUSTICE POWER WAS BORN IN BRISBANE, AUSTRALIA IN DECEMBER

1929.

HE RECEIVED HIS EDUCATION AT UNIVERSITY OF QUEENSLAND AND WAS CALLED TO THE BAR, AUSTRALIA IN 1955.

MR JUSTICE POWER WAS IN PRIVATE PRACTICE IN AUSTRALIA BETWEEN 1955 AND 1965. HE JOINED THE HONG KONG JUDICIARY AS A MAGISTRATE IN 1965. HE WAS A SENIOR MAGISTRATE BETWEEN 1969 AND 1976 AND WAS PRESIDENT OF LANDS TRIBUNAL IN 1976-1979. HE WAS APPOINTED A HIGH COURT JUDGE IN 1979 AND A JUSTICE OF APPEAL TN 1987.

MR JUSTICE MACDOUGALL WAS BORN IN MARCH 1932 AND RECEIVED HIS LL B DEGREE AT UNIVERSITY OF WESTERN AUSTRALIA.

HE JOINED THE LEGAL DEPARTMENT, HONG KONG AS A CROWN COUNSEL TN 1965 AND WAS SENIOR CROWN COUNSEL BETWEEN 1968 AND 1973. HE WAS PROMOTED TO ASSISTANT PRINCIPAL CROWN COUNSEL IN 1973 AND PRINCIPAL CROWN COUNSEL IN 1977.

MR JUSTICE MACDOUGALL JOINED THE HONG KONG JUDICIARY AS A HIGH COURT JUDGE IN 1980 AND WAS APPOINTED A JUSTICE OF APPEAL IN 1989.

/io

TUESDAY, MARCH 2, 1993

- 10 -

TRADE CHIEF CALLS FOR WELL-DISCIPLINED MULTILATERAL TRADE REGIME * * * * *

THERE ARE WORRYING SIGNS SHOWING AMERICA’S BELIEF IN THE BENEFITS OF A LIBERAL TRADE REGIME IS FALTERING, DIRECTOR-GENERAL OF TRADE, MR DONALD TSANG, SAID TODAY (TUESDAY).

"FOR YEARS THE U.S. CONGRESS HAS HAD ITS DOUBTS, AND NOW IT SEEMS WE HAVE AN ADMINISTRATION THAT SHARES THOSE DOUBTS.

"THE EMPHASIS OF THE U.S.’S WORDS AND ACTIONS ON TRADE ISSUES SO FAR HAS BEEN TO THREATEN, RATHER THAN INSPIRE AND LEND - A RASH OF ANTI-DUMPING CASES AGAINST STEEL IMPORTS; A THREAT TO WITHDRAW FROM THE GATT’S GOVERNMENT PROCUREMENT CODE; TACIT SUPPORT FOR A SUPER 301 BILL WHICH CONGRESS IS THREATENING TO PASS; ALL ARE WORRYING SIGNS," MR TSANG SAID.

HOWEVER, HE STILL BELIEVED GOOD SENSE IN THE U.S. ADMINISTRATION MIGHT PREVAIL BECAUSE THE CLINTON TEAM CONTAINED MANY SUPPORTERS OF LIBERAL TRADE AND A STRONG MULTILATERAL SYSTEM.

MR TSANG TOLD AN AUDIENCE OF THE CITY LIONS CLUB AT A LUNCHEON MEETING THAT THE HONG KONG GOVERNMENT WAS READY TO PLAY ITS PART TO CONVINCE THE U.S. ADMINISTRATION THAT AMERICA’S BEST HOPE FOR ECONOMIC RECOVERY AND STRONG EXPORT-LED GROWTH DEPENDED ON AN EARLY COMPLETION OF THE URUGUAY ROUND, A VOTE OF CONFIDENCE IN A WELL-DISCIPLINED MULTILATERAL TRADE REGIME.

A CONSERVATIVE ESTIMATE OF GAINS FROM THE AGREEMENT AS DRAFTED TODAY SUGGESTED AN ANNUAL INCREASE IN WORLD TRADE BY ABOUT US$120 BILLION, OF WHICH AMERICA WOULD ACCOUNT FOR THE MOST, AT ABOUT US$35 BILLION.

"AS WITH CHINA’S MOST-FAVOURED-NATION (MFN) STATUS, IMPATIENCE IN THE AMERICAN CONGRESS IS PLACING U.S. ECONOMIC INTERESTS AT RISK."

AMERICAN BUSINESSES HAVE OVER US$7 BILLION INVESTED IN HONG KONG, OVER US$5 BILLION INVESTED IN CHINA.

"WITHDRAWAL OF CHINA’S MFN STATUS WOULD COST AMERICAN CONSUMERS AN ESTIMATED US$14 BILLION A YEAR.

"AND IF CHINA'S WERE TO RETALIATE, AMERICAN EXPORTS TO CHINA WORTH US$R BILLION AND OVER 150,000 U.S. .JOBS ASSOCIATED WITH THOSE EXPORTS WOULD BE PUT AT RISK," MR TSANG SAID.

HE REMINDED THE AMERICANS THAT THE REAL CHANCE FOR MIDDLE-SIZED AMERICAN COMPANIES LAY IN CHINA’S AWAKENING CONSUMER MARKET.

"AMERICAN PRODUCTS AND BRAND NAMES HAVE A PARTICULAR APPEAL IN CHINA.

"THE REAL DIFFICULTY FOR THE U.S. EXPORTER IS BRIDGING THE CULTURAL GAP. THAT IS WHERE HONG KONG CAN HELP.

/"THE TRADE ........

TUESDAY, MARCH 2, 1993

11

"THE TRADE DEPARTMENT AND THE TRADE DEVELOPMENT COUNCIL ARE WORKING TOGETHER TO DEVISE WAYS IN WHICH TO DO SOME MARRIAGE BROKING; WE AIM TO ENCOURAGE U.S. BUSINESSES THAT HAVE YET TO REALLY FOCUS ON THE HONG KONG AND CHINA MARKETS TO DO SO, AND TO PUT THEM IN TOUCH WITH HONG KONG FIRMS WELL-PLACED TO HELP.

"THERE IS OBVIOUS MUTUAL BENEFIT TO BE DERIVED FROM SUCH AN EXERCISE AND IT WILL BE AIMED AT A PROBLEM WHICH IS GOING TO GET BIGGER - CHINA’S TRADE SURPLUS WITH AMERICA," MR TSANG SAID.

IT WAS WELL UNDERSTOOD THAT ACCESS TO CHINA’S MARKET WOULD BE THE KEY TO ADDRESS GROWING AND WIDESPREAD CONCERN IN AMERICAN BUSINESS AND LABOUR CIRCLES. HOWEVER, IT WOULD NOT BE AN EASY PROCESS.

MR TSANG BELIEVED THE AMERICANS KNEW THE PROBLEM.

"THEY HAVE SHIRKED FOR 30 YEARS FROM OPENING UP THEIR TEXTILES AND GARMENT MARKET TO FULL-BLOODED COMPETITION, FEARING THE UNEMPLOYMENT AND ECONOMIC READJUSTMENT THAT WOULD REQUIRE.

"THEY ARE ASKING MUCH MORE OF CHINA, AND CHINA IS RESPONDING.

"PREVIOUSLY PROTECTED INDUSTRIES WILL SUFFER. BUT THE CHINESE APPEAR QUITE DETERMINED TO REFORM THEIR MARKET, REINFORCE THEIR INFRASTRUCTURE AND BOOST THEIR ECONOMY," MR TSANG SAID.

WITH CHINA’S FIVE-YEAR PLAN FOR 1991 TO 1995 WHICH INVOLVED SPENDING US$300 BILLION TO US$500 BILLION ON IMPORTS, OPPORTUNITIES PRESENTED TO HONG KONG AND AMERICAN COMPANIES ALIKE WERE TREMENDOUS.

MR TSANG PREDICTED AMERICA’S EXPORTS TO CHINA WOULD CONTINUE TO FLOURISH, AND THAT CRITICAL TRADE SURPLUS WOULD BEGIN TO DECLINE.

"HONG KONG MUST BE A PART OF THAT PROCESS, AND WILL BENEFIT FROM IT IN MANY WAYS," HE ADDED.

TURNING TO CHINA’S DESIRE TO RE-JOIN THE GATT, MR TSANG INDICATED HONG KONG'S SUPPORT OF ITS ADMITTANCE TO THIS MULTILATERAL TRADING BODY, BUT "THE CONDITIONS MUST BE REASONABLE AND AGREED BY ALL PARTIES".

"CHINA IS TAKING THAT PROCESS SERIOUSLY AND I AM REASONABLY HOPEFUL THAT THE TERMS OF CHINA’S ACCESSION TO GATT WILL HAVE BEEN AGREED BY THE END OF THIS YEAR," HE SAID.

HONG KONG ALSO WELCOMED TAIWAN TO BECOME A MEMBER OF THE GATT.

MR TSANG SAID GREATER ECONOMIC ACTIVITY AND MORE OPEN MARKETS AMONG OUR NEIGHBOURS WAS WHAT WE NEEDED.

"AS PROTECTIONISM CAUSES UNCERTAINTY IN OUR TRADITIONAL MARKETS, IT IS A RELIEF TO SEE THE BARRIERS BEING LOWERED CLOSER TO HOME.

"AND AS OUR SERVICE GROWS IT WILL BE WELL-PLACED TO MAKE THE MOST OF OPPORTUNITIES OPENING UP NEARBY," HE SAID.

/12 ........

TUESDAY, MARCH 2, 1993

- 12

HK AMONG LOWEST MATERNAL MORTALITY RATE *****

MRS PATTEN TODAY (TUESDAY) SAID SHE WAS PROUD OF HONG KONG BEING ONE OF THE WORLD’S BEST IN TERMS OF LOW PERINATAL AND MATERNAL MORTALITY RATES.

SPEAKING AT A CEREMONY TO MARK THE 70TH ANNIVERSARY OF TSAN YUK HOSPITAL AND THE COMPLETION OF ITS RENOVATION PROJECT, SHE SAID SHE WAS DELIGHTED TO SEE SUCH MARVELLOUS IMPROVEMENTS IN THE PUBLIC MATERNITY SERVICE IN HONG KONG.

"OVER THE YEARS, TSAN YUK HOSPITAL HAS PLAYED A LEADING ROLE IN PROVIDING THE COMMUNITY WITH OBSTETRIC AND NEONATAL CARE OF THE HIGHEST QUALITY AT TERTIARY LEVEL," MRS PATTEN SAID.

"WE NEED HOSPITALS AND INSTITUTIONS SUCH AS THIS ONE, WHICH WILL PROVIDE STATE-OF-THE-ART ADVANCED MEDICAL CARE TO THOSE WHO NEED IT," SHE ADDED.

MRS PATTEN SAID THE HOSPITAL HAD SERVED AS A TRAINING GROUND FOR GENERATIONS OF DOCTORS AND NURSES AND OTHER PROFESSIONAL STAFF WHO HAD CHOSEN TO DEVOTE THEMSELVES TO THE CARE OF PREGNANT WOMEN AND THEIR BABIES.

"THE RENOVATION OF THE HOSPITAL’S WARDS AND FACILITIES WILL UNDOUBTEDLY PROMOTE ITS IMAGE AND CONTRIBUTE TOWARDS THE ATTAINMENT OF EXCELLENCE IN OBSTETRIC CARE.”

IT IS THE ULTIMATE AIM OF MODERN MEDICINE TO ELIMINATE OR AT LEAST REDUCE MOST OF THE DANGERS OF CHILD-BEARING, SHE ADDED.

"I AM CHEERED BY THE THOUGHT OF ALL THE MOTHERS AND MOTHERS-TO-BE WHO HAVE BENEFITED AND WILL CONTINUE TO BENEFIT FROM THE CARE AND DEDICATION OF A PROFESSIONAL TEAM OF STAFF IN A HOSPITAL WHICH BOASTS THE LATEST TECHNOLOGY AND FACILITIES, AND YET WAS DESIGNED WITH THE COMFORT OF PATIENTS IN MIND," MRS PATTEN SAID.

-----0------

CLEAN AND GREEN PHOTO CONTEST RESULTS ANNOUNCED ******

THE AGRICULTURE AND FISHERIES DEPARTMENT (AFD) TODAY (TUESDAY) ANNOUNCED THE RESULTS OF THE CLEAN AND GREEN PHOTO COMPETITION HELD RECENTLY FOR COUNTRY PARK LOVERS AND AMATEUR PHOTOGRAPHERS.

THE CHAMPION OF THE CONTEST IS MS LAW ME I-HA WHEREAS MR CHEUNG CHI-YU AND MR NG CHIN-SHUN ARE THE FIRST AND SECOND RUNNERS-UP RESPECTIVELY. THEY AND FIVE OTHER CONSOLATION WINNERS WILL BE PRESENTED WITH PRIZES.

THE WINNING ENTRIES WERE CHOSEN BY A PANEL OF THREE ADJUDICATORS AT A SELECTION SESSION HELD AT THE AFD HEADQUARTERS THIS (TUESDAY) AFTERNOON.

/ONE OF ........

TUESDAY, MARCH 2, 1993

13 -

ONE OE THE XDJUDICATORS, ALSO THE CHAIRMAN OF THE COUNTRY PARKS BOARD’S PUBLIC RELATIONS COMMITTEE, MR GEORGE TAN, SAID THEY HAD A HARD TIME IN SELECTING THE WINNERS AS MOST CONTESTANTS HAVE A HIGH STANDARD IN PHOTOGRAPHY.

"EROM THE ENTRIES, WE I-IND THAT THE CONTESTANTS ARE NOT ONLY PHOTO ENTHUSIASTS, THEY ARE ALSO COUNTRYSI DE LOVERS WHO HAVE TRIED THEIR BEST TO PROJECT THE CLEAN AND GREEN IMAGE OE OUR COUNTRYSIDE THROUGH THEIR LENSES.

"THIS SHOWS THAT THE CONTEST HAS ACHIEVED THE AIM OE PUTTING ACROSS THE MESSAGE OE THE NEED TO HELP MAINTAIN OUR COUNTRY PARKS IN A GOOD AND CLEAN SHAPE," HE SAID.

THE WINNING PIECES WILL BE PUT ON PUBLIC DISPLAY AT AN EXHIBITION TO MARK THE CLOSING OE THIS YEAR’S CLEAN AND GREEN SCHEME.

AN AED SPOKESMAN NOTED THAT I’HE RESPONSE TO THE CONTEST WAS ENCOURAGING. MORE THAN 350 ENTRIES WERE RECEIVED AT THE CLOSE OF THE COMPETITION LAST SUNDAY.

THE CONTEST IS ONE OF THE ACT I V ITIES ORGANISED THIS YEAR TO MARK THE 1OTH ANNIVERSARY OF THE (’LEAN AND GREEN SCHEME.

THE SPOKESMAN ALSO URGED MEMBERS OF THE PUBLIC TO TAKE AN ACTIVE PART IN THE SCHEME’S OTHER ACTIVITIES, INCLUDING A TREE-MATCHING COMPETITION, A LITTER COLLECTION CAMPAIGN AND AN EXHIBITION, TO SHOW THEIR SUPPORT FOR THE MEANINGFUL CAUSE.

THE CLEAN AND GREEN SCHEME PHOTO CONTEST WAS ORGANISED BY AFD’S COUNTRY PARKS AUTHORITY WITH SPONSORSHIP FROM KODAK (FAR EAST) LTD.

--------0

TRANSPORT STAMPS WIN AWARD

*****

THE SPECIAL STAMP DESIGN FEATURING SIX MODES OF TRANSPORT IN HONG KONG HAS RECENTLY WON THE BRONZE AWARD IN THE "MISCELLANEOUS DESIGN" CATEGORY OF THE DESIGN ’92 COMPETITION ORGANISED BY THE HONG KONG DESIGNERS ASSOCIATION.

ANNOUNCING THIS TODAY (TUESDAY), THE POSTMASTER GENERAL, MR M PAGLIARI, SAID THE STAMPS, ENTITLED "100 YEARS OF TRANSPORT IN HONG KONG", WERE ISSUED ON JUNE 6, 1991.

THE SET WAS DESIGNED BY MR COLIN TILLYER.

THIS WAS THE SECOND AWARD GIVEN IN THE DESIGN ’92 COMPETITION FOR HONG KONG POSTAGE STAMP.

THE OTHER WAS A CERTIFICATE OF EXCELLENCE IN THE "PROMOTIONAL MAILING" CATEGORY FOR THE LUNAR NEW YEAR STAMPS TO COMMEMORATE THE "YEAR OF THE MONKEY" WHICH WERE DESIGNED BY MR KAN TXI-KEUNG.

0

714

TUESDAY, MARCH 2, 1993

14 -

FS TO DELIVER BUDGET SPEECH TOMORROW *****

HONG KONG’S BUDGET FOR THE FINANCIAL YEAR 1993/94 WILL BE PRESENTED TO THE LEGISLATIVE COUNCIL TOMORROW (WEDNESDAY).

THE PROCEEDINGS WILL START AT 2.30 PM AND THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, WILL MOVE THE FIRST AND SECOND READINGS OF THE APPROPRIATION BILL 1993, AND OUTLINE THE ESTIMATED REVENUE AND EXPENDITURE FOR 1993/94.

THE HEADS OF EXPENDITURE WERE SET OUT IN THE APPROPRIATION BILL 1993 WHICH WAS PUBLISHED IN THE GAZETTE LAST FRIDAY.

DEBATE ON THE BILL WILL BE ADJOURNED UNTIL MARCH 24 AND 25, WHEN MEMBERS WILL GIVE THEIR VIEWS ON THE BUDGET PROPOSALS.

OFFICIALS WILL GIVE THEIR REPLIES ON MARCH 31.

ON MARCH 17, 18 AND 19, THERE WILL ALSO BF SPECIAL MEETINGS OF THE FINANCE COMMITTEE TO EXAMINE THE DRAFT ESTIMATES OF EXPENDITURE.

ATTENTION NEWS EDITORS:

GIS WILL PROVIDE FACILITIES TOMORROW (WEDNESDAY) TO ENABLE MEDIA REPRESENTATIVES TO START WORK EARLY ON THE BUDGET.

MEDIA MEMBERS WILL BE GIVEN ADVANCE COPIES OF THE BUDGET SPEECH AND ECONOMIC PROSPECTS AT NOON.

THEY MUST STAY IN THE GIS PRESS CONFERENCE ROOM ON THE FIFTH FLOOR OF BEACONSFIELD HOUSE, QUEEN’S ROAD CENTRAL TO WORK ON THEIR COPIES AND WILL NOT BE ALLOWED TO LEAVE UNTIL AFTER THE FINANCIAL SECRETARY HAS CONCLUDED HIS SPEECH.

CONTACTS OF ANY KIND WITH OUTSIDE, SUCH AS TELEPHONE OR COMPUTER LINKS, ARE PROHIBITED DURING THF CLOSED WORKING SESSION. ALSO, MOBILE TELEPHONES WILL NOT BE ALLOWED INTO THF CONFERENCE ROOM.

GOVERNMENT OFFICIALS FROM THE FINANCE BRANCH WILL BE ON HAND TO HELP MEDIA REPRESENTATIVES TN THE CONFERENCE ROOM FROM 12.30 PM. THEY WILL NOT GIVE INTERVIEWS AND THEY SHOULD NOT BE QUOTED.

THE FINANCIAL SECRETARY WILL MEET THE MEDIA AT THE GTS PRESS CONFERENCE ROOM AROUND 4 PM TO ANSWER QUESTIONS RELATING TO THE BUDGET AFTER HIS DELIVERY OF THE SPEECH IN THE LEGCO.

DUE TO SPACE LIMITATION, ONLY GENUINE MEMBERS OF THE PRESS WILL BE ADMITTED TO THE CLOSED WORKING SESSION.

0---------

/15 ........

TUESDAY, MARCH 2, 1993

15

HONG KONG GOVERNMENT EXCHANGE FUND TENDER RESULTS ♦ * ♦ * t

TENDER DATFt PAPER ON OFFER ISSUE NUMBER AMOUNT APPLIED 2 MAR 93 EF BILLS Q309 HKD 4.150MN 2 MAR 93 EF BILLS H359 HKD 2,620MN

AMOUNT ALLOTTED HKD 1.000MN HKD 400MN

AVERAGE YIELD ACCEPTED 2.ft6 PCT 3.03 PCT

HIGHEST YIELD ACCEPTED 2.88 PCT 3.03 PCT

PRO RATA RATIO ABOUT 8 1 PCT ABOUT 84 PCT

AVERAGE TENDER YIELD 2.92 PCT 3.13 PCT

HONG KONG GOVERNMENT EXCHANGE FUND

TENDERS TO BE HELD IN THE TENDER DATE PAPER ON OFFER ISSUE NUMBER ISSUE DATE MATURITY DATE TENOR WEEK BEGINNING 8 MAR 9 MAR 93 EF BILLS Q3 1 0 10 MAR 93 9 JUNE 93 91 DAYS 93 -

AMOUNT ON OFFER HKD 1,000 + 200 MN

--------0-----------

/16 ........

TUESDAY, MARCH 2, 1993

16 -

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1 »A10

REVERSAL OF LAF + 3^0

BALANCE AFTER REVERSAL OF LAE 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAE TODAY NIL

CLOSING BALANCE IN THE ACCOUNT 2,150

LAF RATE 2.00 BID/4.00 OFFER TWI 114.2 *+0.0* 2.3.93

HONG KONG GOVERNMENT E\( MANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.20 PCT 15 MONTHS 24 05 5.50 102.39 3.50

1 MONTH 2.57 PCT IR MONTHS 2408 5.50 10 1 .20 3.56

3 MONTHS 2.84 PCT 21 MONTHS 24 1 1 4 . 375 101.57 3.70

6 MONTHS 3.02 PCT 24 MONTHS 2502 4.625 101.64 3.91

12 MONTHS 3.37 PCT

TOTAL TURNOVER. OF BILLS AND BONDS - 11,231 MN

CLOSED MARCH 2, 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

WEDNESDAY, MARCH 3, 1993

CONTENTS' PAGE NO.

STATEMENT TO I FGCO ON FRIDAY ................................. 1

GOVERNOR TO CURTATE JAPAN VTSTT ............................... 2

GOVERNOR VISITS YAU TSTM DTSTRTCI ............................. 2

NEWLY ANNOUNCED SENIOR POSTINGS NECESSARY: CS ................. 3

ENGINEERS URGED TO NARROW TECHNOLOGY GAP ...................... 3

CALL FOR COMMUNITY SUPPORT TO WELFARE SERVICES ................ 4

CONTROLLED USE OF PYROTECHNICS APPROVED ....................... h

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 6

LEGISLATIVE COUNCIL:

MORTGAGE LOAN RATIO TO STAY ................................. 7

MEASURES AGAINST ILLEGAL CAR RACING ......................... 8

GOVT ENCOURAGES CHINA EXCHANGE VISITS ....................... 8

WAYS ON HAND TO CURB II I EGAI IMMIGRATION .................. 9

MEASURES TO IMPROVE DEMOLITION PRACTICE ..................... 10

/FFFS CHARGED .......

FEES CHARGED BY MEDICAL PRACTITTONFRS MOVTTORFD

10

SHA EXPLAINS POLICY ON’ KARAOKES .............................. 11

COMPASSIONATE REHOUSING QUOTA UNDER REGULAR REVIEW ............ 13

TEACHER WASTAGE RATES ......................................... 13

3,000 PUBLIC RENTAL FEATS ALLOCATED AT TIN SHIT WAT ........... 16

MEASURES TO DETECT FRAUD TN HOS APPLICATIONS .................. 16

SHORTFALL PROJECTED TN KWAI CHUNG PRIMARY SCHOOL PLACES ... 17

APPOINTMENT OF VISITING TEACHERS WORLD PRACTICE ............... 1«

TRAINING AND JOB OPPORTUNTTTES FOR VISUALLY-IMPAIRED ......... 1ft

OFFICE SET UP TO MONITOR WEST KOWLOON RECLAMATION ............. 19

PRESENT DRIVING ARRANGEMENTS WORK WELI ........................ 20

SEASONAL RISE IN CRIME ON EANTAU .............................. 20

AIRLINES PROMPTLY REMOVE INADMISSIBLE PERSONS ................. 21

EDUCATION DEPARTMENT EMBARKS ON 16 RESEARCH PROJECTS .......... 22

REMEDIAL CLASSES FOR STUDENTS WITH STUDY PROBLEMS ............. 22

WEDNESDAY, MARCH 3, 1993

1

STATEMENT TO LEGCO ON FRIDAY » » * ♦ » *

THE GOVERNMENT HAS MADE CONTACT WITH THE PRESIDENT OF THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON WITH THE CONTINGENT POSSIBILITY OF THE GOVERNOR MAKING A STATEMENT ON POLITICAL DEVELOPMENT TO THE COUNCIL ON FRIDAY.

SPEAKING TO REPORTERS AFTER VISITING YAU TSIM DISTRICT, THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN SAID: "I SAID THAT I INTENDED MAKING THINGS A LITTLE CLEARER THIS WEEK TO THE COMMUNITY AND I INTEND TO STICK TO THAT OBJECTIVE.”

ASKED IF HIS REMARKS YESTERDAY MEANT HE HAD GIVEN UP HIS POLITICAL PROPOSALS, THE GOVERNOR SAID : ’’WHAT I SAID YESTERDAY WAS VERY SIMILAR TO WHAT I’VE SAID ON A NUMBER OF OTHER OCCASIONS, FOR EXAMPLE, WHEN I CAME BACK FROM MY VISIT TO PEKING ON 24 OCTOBER.

”SO WHAT I SAID YESTERDAY DOESN’T REPRESENT ANY CHANGE. IT REPRESENTS A REPETITION OF WHAT HAS BEEN HONG KONG’S POSITION EVER SINCE 7 OCTOBER LAST YEAR.”

COMMENTING ON THE BUDGET RELEASED BY THE FINANCIAL SECRETARY TODAY, THE GOVERNOR DESCRIBED IT AS A TRIBUTE TO THE HARD WORK AND SUCCESS OF THE PEOPLE OF HONG KONG AND ALSO A MARK OF THE PRUDENT AND SENSIBLE MANAGEMENT OF HONG KONG’S ECONOMY AND FINANCIAL AFFAIRS IN THE LAST FEW YEARS.

"IT’S A BUDGET WHICH MANAGES TO CUT TAXES FOR NINE OUT OF 10 OF HONG KONG’S TAXPAYERS,” HE SAID.

"IT PROVIDES MORE ASSISTANCE FOR THE DISADVANTAGED AND IT PUTS MORE INVESTMENTS INTO SOME OF THE MOST IMPORTANT PROJECTS WHICH WILL HELP TO SECURE OUR ECONOMY AND OUR PROSPERITY AND STABILITY IN THE FUTURE.

"IT MAKES PROVISION FOR A LARGER SURPLUS BY 1997. SO, IT IS A REMARKABLE BUDGET AND, I AM SURE, WILL BE RECOGNISED AS SUCH BY THE COMMUNITY.

"IT, OF COURSE, REFLECTS DISCUSSIONS WHICH THE FINANCIAL SECRETARY HAS BEEN HAVING WITH MEMBERS OF THE LEGISLATIVE COUNCIL, WITH BUSINESSMEN, AND WITH OTHERS OVER THE LAST FEW MONTHS.

”1 AM PARTICULARLY PLEASED THAT THE FINANCIAL SECRETARY HAS BEEN ABLE TO MAKE IT CLEAR THAT THE PROMISES THAT I MADE IN MY LEGISLATIVE COUNCIL SPEECH LAST OCTOBER, ARE ALL BEING CARRIED OUT AND WE ARE ABLE TO GO RATHER FURTHER IN A NUMBER OF WELFARE AREAS THAN WE INTENDED.

"I AM ALSO DELIGHTED AT THE ADDITIONAL HELP WHICH HAS BEEN ANNOUNCED FOR ONE OF THE NEEDIEST GROUPS AND THE COMMUNITY GROUP WHICH REALLY DESERVE GREATER SUPPORT, AND THAT IS THE HEMOPHILIACS.”

/ASKED ABOUT .......

WEDNESDAY, MARCH 3, 1993

2

ASKED ABOUT A DEFICIT BUDGET PROPOSED BY THE FINANCIAL SECRETARY IN THE FOLLOWING YEARS, THE GOVERNOR SAID: "WE ARE FORECASTING A VERY SMALL DEFICIT NEXT YEAR, THOUGH IN PRACTICE THAT MAY NOT MATERIALISE BECAUSE IT IS QUITE DIFFICULT SOMETIME AS WE DISCOVERED THIS YEAR TO SPEND OUR CAPITAL PROGRAMME AS RAPIDLY AS WE WOULD LIKE.

’’WHAT WE ARE DOING IS INVESTING AS PARTS OF THE PROCEEDS OF OUR GROWTH IN THE FUTURE INFRASTRUCTURE OF HONG KONG.

"THAT IS VERY IMPORTANT TOO. WE ARE DOING THAT WHILE RETAINING SUBSTANTIAL SURPLUSES IN CASE THERE IS A RAINY DAY.

’’IN ORDER TO HAVE A VERY BIG RESERVE FOR THE FUTURE, WE ARE PREDICTING AS YOU WILL HAVE SEEN BIGGER RESERVES FOR 1997 THIS YEAR THAN WE PREDICTED LAST YEAR. AND, WE ARE ALSO, OF COURSE, LOOKING TO THE SUBSTANTIAL FUNDS WHICH ARE IN THE EXCHANGE FUND AND THERE IS A LOT OF MONEY AS WELL IN THE LAND FUND."

---------------0-------- GOVERNOR TO CURTAIL JAPAN VISIT * * * * *

A GOVERNMENT SPOKESMAN SAID TODAY (WEDNESDAY) THAT THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, HAD DECIDED TO CURTAIL HIS FORTHCOMING VISIT TO JAPAN WHICH HAD BEEN PLANNED FOR MARCH 4 TO 8.

MR PATTEN WILL NOW TRAVEL TO JAPAN ON FRIDAY (MARCH 5) OR SATURDAY (MARCH 6) AND RETURN ON SUNDAY (MARCH 7) AFTER ADDRESSING THE JAPAN-UNITED KINGDOM 2000 GROUP CONFERENCE AT AWASHIMA.

----0------

GOVERNOR VISITS YAU TSIM DISTRICT

******

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, VISITED YAU TSIM DISTRICT TODAY (WEDNESDAY).

FROM THE ROOFTOP OF A TOWERING BLOCK AT PROSPEROUS GARDEN IN YAU MA TEI, MR PATTEN HAD A PANORAMIC VIEW OF THE WEST KOWLOON RECLAMATION PROJECT WHILE HE WAS BEING BRIEFED ON ITS PROGRESS.

THE MAMMOTH RECLAMATION WILL CREATE MORE THAN 340 HECTARES OF LAND FOR MAJOR TRANSPORT INFRASTRUCTURE PROJECTS AND ASSORTED

WHILE AT PROSPEROUS GARDEN - A HOUSING SOCIETY RESIDENTIAL ESTATE - MR PATTEN WAS ALSO GIVEN AN UPDATE ON THE SOCIETY’S PLAN ON THE REDEVELOPMENT OF THE "SIX STREETS" IN YAU MA TEI. THIS WAS FOLLOWED BY A VISIT TO AN ELDERLY DAY ACTIVITY CENTRE IN THE ESTATE

/EARLIER, HE ........

WEDNESDAY, MARCH 3, 1993

3

EARLIER, HE ALSO TOURED THE JADE HAWKERS BAZAAR IN KANSU STREET.

BEFORE CONCLUDING HIS VISIT, MR PATTEN MET DISTRICT BOARD MEMBERS AND LOCAL PERSONALITIES AT A TEA RECEPTION.

MR PATTEN WAS ACCOMPANIED ON THE VISIT BY THE REGIONAL SECRETARY FOR HONG KONG AND KOWLOON, MR PAUL WONG; YAU TSIM DISTRICT OFFICER, MR BARTON IRELAND; AND THE DISTRICT BOARD CHAIRMAN, MR YIP WAR .

------0--------

NEWLY ANNOUNCED SENIOR POSTINGS NECESSARY: CS * * * * »

THE CHIEF SECRETARY, SIR DAVID FORI), SAID THIS (WEDNESDAY) MORNING THAT THE SENIOR POSTINGS ANNOUNCED YESTERDAY WERE NECESSARY AND WERE CONSEQUENCE ON MR JOHN CHAN’S RETIREMENT AND MR BARRIE WIGGHAM’S POSTING TO THE UNITED STATES.

SPEAKING TO REPORTERS AT THE CENTRAL GOVERNMENT OFFICES, SIR DAVID SAID MR CHAN’S DEPARTURE WAS NOT SUDDEN.

"WE’VE KNOWN ABOUT IT FOR SOME TIME. HE LET US KNOW HE INTENDED TO RETIRE WHEN HE REACHED RETIREMENT AGE AT THE AGE OF 50," HE SAID.

"HE WANTED TO DO SO FOR PERSONAL REASONS. WE’VE CERTAINLY NOT IN ANY WAY LOST CONFIDENCE IN HIM.

"WE WERE VERY SORRY TO SEE HIM GO. BUT I THINK IT’S NOT UP TO THE GOVERNMENT TO EXPLAIN HIS PERSONAL REASONS. THAT’S A MATTER FOR THE OFFICER CONCERNED."

ENGINEERS URGED TO NARROW TECHNOLOGY GAP

*****

1 HE DIRECTOR OF ELECTRICAL AND MECHANICAL SERVICES, MR KWOK PING-KI, THIS (WEDNESDAY) MORNING ENCOURAGED ENGINEERS TO ACTIVELY STUDY 1HE APPLICATION OF CONTROL, AUTOMATION AND INSTRUMENTATION ENGINEERING FOR HONG KONG’S MANUFACTURING INDUSTRY.

MR KWOK WAS SPEAKING AT THE OPENING CEREMONY FOR THE CONTROL AUTOMATION AND INSTRUMENTATION SYMPOSIUM ’93 ORGANISED BY THE HONG INSTITUTION OF ENGINEERS AT THE HONG KONG CONVENTION AND EXHIBITION CENTRE.

HE SAID HONG KONG’S MANUFACTURING INDUSTRY WHICH EMPHASISED ON HI-TECH DEVELOPMENT AND ON QUALITY AND PRODUCTIVITY INCREASE, REQUIRED I HI'. SUPPORT OF CONTROL, AUTOMATION, AND INSTRUMENTATION ENGINEERING.

/HE SAID ......

WEDNESDAY, MARCH 3, 1993

HE SAID ONE WOULD REALISE THE IMPORTANCE OF CONTROL, AUTOMATION AND INSTRUMENTATION IN MANUFACTURING BY LOOKING AT SOME OF THE DOCUMENTARIES OF THE JAPANESE CAR INDUSTRY SHOWING THE ROBOTS WORKING PRECISELY AND UNTIRINGLY.

FOR HONG KONG TO CATCH UP AND TO NARROW THAT TECHNOLOGY GAP, MR KWOK SAID, IT REQUIRED TREMENDOUS EFFORT FROM ALL MEMBERS OF THE CONTROL AUTOMATION AND INSTRUMENTATION DISCIPLINE.

’’INDEED, IN OTHER DEVELOPED COUNTRIES, THE DAYS OF FULLY AUTOMATIC FACTORIES ARE JUST AROUND THE CORNER, AND WE CANNOT AFFORD TO BE COMPLACENT IF HONG KONG IS TO STAY COMPETITIVE,” HE SAID.

HE ALSO SAID IN DAILY LIFE ONE COULD HARDLY PASS A DAY WITHOUT BENEFITING FROM THE TECHNOLOGY OF CONTROL, AUTOMATION AND INSTRUMENTATION.

’’POWER GENERATION, MASS TRANSIT SYSTEMS, LIFTS, AIR-CONDITIONING, BREWERY, WATER SUPPLY, FOOD PROCESSING, ALL USE VARIOUS TYPES OF CONTROLS SYSTEMS AND AUTOMATION SYSTEMS FOR OPTIMISATION OF PERFORMANCE, FOR AUTOMATIC PROTECTION, AND FOR SAFETY OPERATION,” HE ADDED.

--------0-----------

CALL FOR COMMUNITY SUPPORT TO WELFARE SERVICES

******

THE DIRECTOR OF SOCIAL WELFARE, MR TAN STRACHAN, TODAY (WEDNESDAY) CALLED ON THE COMMUNITY TO CONTINUE TO SUPPORT ALL SOCIAL WELFARE SERVICES, ESPECIALLY ELDERLY SERVICES.

ADDRESSING IN CANTONESE THE OPENING OF YUEN LONG TOWN HALL MRS LEUNG HOK CHIU SOCIAL CENTRE FOR THE ELDERLY, HE SAID THE GENEROUS DONATION BY MR LEUNG HOK-CHIU TOWARDS THE CAPITAL COSTS OF THE CENTRE WAS A GOOD EXAMPLE OF COMMUNITY SUPPORT.

’’THE OPENING OF THIS CENTRE MEETS THE NEEDS OF THE ELDERLY IN THE NEW TOWN OF TIN SHUT WAI,” HE SAID, ADDING THAT THE CENTRE WOULD ALSO WIDEN THE SOCIAL CIRCLE OF SENIOR CITIZENS FN THE DISTRICT.

THE YUEN LONG TOWN HALL HAS, SINCE 1965, EXPANDED ITS SOCIAL WELFARE SERVICES TO MEET THE CHANGING NEEDS OF THE LOCAL RESIDENTS.

MR STRACHAN PAID TRIBUTE TO THE DIRECTORS OF YUEN LONG TOWN HALL FOR THEIR ENTHUSIASM IN SETTING UP THE SOCIAL CENTRE.

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/5 .........

WEDNESDAY, MARCH 3,

1993

5

CONTROLLED USE OF PYROTECHNICS APPROVED

* * t * * t

THE GOVERNOR IN COUNCIL HAS APPROVED THAT PYROTECHNICS MAY BE USED FOR THE PRODUCTION OF MOTION PICTURES AND TELEVISION PROGRAMMES AND FOR THEATRICAL PERFORMANCES, A SPOKESMAN FOR THE RECREATION AND CULTURE BRANCH SAID TODAY (WEDNESDAY).

THE SECRETARY FOR RECREATION AND CULTURE HAS ESTABLISHED EARLIER AN INTER-DEPARTMENTAL WORKING GROUP TO EXAMINE THE FEASIBILITY OF ALLOWING CONTROLLED USE OF PYROTECHNICS AND TO WORK OUT A REGULATORY FRAMEWORK.

TWO SETS OF GUIDELINES HAVE NOW BEEN DRAWN UP, ONE FOR MOTION PICTURE AND TELEVISION COMPANIES AND THE OTHER FOR THE THEATRICAL PERFORMANCE COMPANIES, AFTER EXTENSIVE CONSULTATION WITH THE RELEVANT INDUSTRIES.

THESE GUIDELINES ARE DRAWN UP HAVING REGARD TO THE NEED OF THE INDUSTRIES CONCERNED AS WELL AS PUBLIC SAFETY AND SAFETY OF THE FILMING CREW AND PERFORMERS.

UNDER THE GUIDELINES, APPLICATIONS FROM REGISTERED TV, FILMING COMPANIES, PROFESSIONAL PERFORMANCE INSTITUTES OR PROFESSIONAL PERFORMANCE GROUPS WILL BE CONSIDERED.

THE SECRETARY FOR RECREATION AND CULTURE IS RESPONSIBLE FOR ISSUING PERMITS FOR THE DISCHARGE OF PYROTECHNICS ON LAND, WHILE THE DIRECTOR OF MARINE IS THE PERMIT ISSUING AUTHORITY FOR PYROTECHNICS DISCHARGED ON OR OVER THE WATERS OF HONG KONG.

DISCHARGE OF PYROTECHNICS WILL BE ALLOWED SUBJECT TO ANY CONDITIONS WHICH MAY BE SPECIFIED BY THE AUTHORITY, UPON CONSULTATION WITH THE COMMISSIONER OF POLICE, DIRECTOR OF FIRE SERVICES AND COMMISSIONER OF MINES.

APPLICATION TO USE PYROTECHNICS MAY BE APPROVED IF THE LICENSING AUTHORITY IS SATISFIED, AMONG OTHER THINGS, THAT THERE ARE ADEQUATE PRECAUTIONARY MEASURES TAKEN AGAINST ANY POSSIBLE FIRE HAZARD, THAT THERE IS NO DISTURBANCE OR INCONVENIENCE TO THE PUBLIC AND THAT ADEQUATE INSURANCE COVERAGE IS TAKEN OUT.

THE PYROTECHNICS MUST BE DISCHARGED BY A PYROTECHNICIAN REGISTERED WITH THE COMMISSIONER OF MINES.

FOR REGISTRATION, THE PYROTECHNICTAN WILL BE REQUIRED TO DEMONSTRATE THAT HE POSSESSES PROVEN RELEVANT EXPERIENCE IN THE PRODUCTION OF PYROTECHNIC EFFECTS, KNOWLEDGE OF THE TECHNOLOGY AND THE USAGE OF PYROTECHNICS AND KNOWLEDGE OF LOCAL REGULATIONS ON DANGEROUS GOODS.

PERMITS WILL ALSO BE REQUIRED FROM THE COMMISSIONER OF MINES FOR THE STORAGE AND CONVEYANCE OF THE PYROTECHNICS.

/’’TELEVISION AND.........

WEDNESDAY, MARCH 3, 1993

6

’’TELEVISION AND MOTION PICTURE COMPANIES AND PERFORMING ARTS GROUPS WILL SHORTLY BE INFORMED OF THE DETAILED ARRANGEMENTS OF THE LICENSING SYSTEM,” THE SPOKESMAN SAID.

“MEMBERS OF THE PUBLIC ARE REMINDED THAT INDIVIDUAL LETTING OFF OF FIREWORKS OR FIRECRACKERS IS STILL PROHIBITED,” HE ADDED.

------0--------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

***** $ MILLION

OPENING BALANCE IN THE ACCOUNT 2,150 REVERSAL OF LAF NIL BALANCE AFTER REVERSAL OF LAF 2,150 NET INJECTION/WITHDRAWAL TODAY NIL EFFECT OF LAF TODAY -850 CLOSING BALANCE IN THE ACCOUNT 1,300 LAF RATE 2.00 BID/4.00 OFFER TWI 113.7 «-0.5* 3.3.93 HONG KONG GOVERNMENT EXCHANGE FUND EF BILLS HONG KONG GOVERNMENT BONDS TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.13 PCT 15 MONTHS 2405 5.50 102.41 3.47

1 MONTH 2.57 PCT 18 MONTHS 2408 5.50 101.22 3.54

3 MONTHS 2.86 PCT 21 MONTHS 2411 4.375 101.56 3.70

6 MONTHS 3.03 PCT 24 MONTHS 2502 4.625 101.64 3.91

12 MONTHS 3.37 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 12,469 MN

CLOSED MARCH 3, 1993

------0--------

/7.........

WEDNESDAY, MARCH 3, 1993

MORTGAGE LOAN RATIO TO STAY

*****

THE GOVERNMENT STRONGLY BELIEVES THAT BANKS SHOULD CONTINUE TO BE CAUTIOUS IN THEIR RESIDENTIAL MORTGAGE LENDING ACTIVITIES AND THE 70 PER CENT LOAN-TO-VALUATION RATIO SHOULD BE KEPT INTACT.

THIS WAS STATED BY THE SECRETARY FOR MONETARY AFFAIRS, MR MICHAEL CARTLAND, IN A WRITTEN REPLY TO A QUESTION BY THE HON DAVID LI AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

ASSURING THE COUNCIL THAT THE SITUATION WOULD BE KEPT UNDER CONSTANT MONITORING AND REVIEW, THE SECRETARY SAID RELAXATION SHOULD BE CONSIDERED ONLY WHEN THERE COULD BE SOME CONFIDENCE THAT THIS WOULD NOT LEAD TO A FRESH ROUND OF SPECULATION.

"MOREOVER, IT CAN BE SAFELY ASSUMED THAT RELAXATION IN FUTURE, IF ANY, WILL BE CAUTIOUSLY CONTROLLED AND WILL AIM ONLY AT HELPING GENUINE END-USERS, AND FIRST-TIME BUYERS IN PARTICULAR," HE SAID.

THE 70 PER CENT LOAN RATE GUIDELINE WAS VOLUNTARILY ADOPTED BY THE BANKING INDUSTRY IN NOVEMBER 1991, IN THE WAKE OF EXCESSIVE SPECULATIVE ACTIVITY AND FOR THE PURPOSE OF SAFEGUARDING THE BANKS’ OWN INTERESTS.

MR CARTLAND SAID THE GOVERNMENT WELCOMED THIS MEASURE AND HAD SINCE BEEN URGING ALL AUTHORISED INSTITUTIONS TO ADHERE TO THE GUIDELINE.

"WE WILL CONTINUE TO ENCOURAGE BANKS TO TAKE A CAUTIOUS STAND WITH REGARD TO RESIDENTIAL MORTGAGES."

"THE GUIDELINE HAS EVIDENTLY BEEN SUCCESSFUL. THE MARKET HAS BEEN COOLING DOWN IN THE PAST SIX MONTHS. TRANSACTION VOLUME HAS SHRUNK. PRICES HAVE CORRECTED HEALTHILY. EXCESSIVE SPECULATION HAS BEEN CURBED," HE SAID.

HOWEVER, DESPITE THE SLOWING DOWN, BANK MORTGAGE LENDING HAS CONTINUED TO EXPAND AND INDEED HAS SLIGHTLY INCREASED ITS SHARE OF TOTAL LOANS FOR USE TN HONG KONG LAST YEAR, HE SAID.

PROPERTY PRICES IN JANUARY THIS YEAR WERE STILL SOME 14 PER CENT HIGHER THAN IN NOVEMBER 1991, HE ADDED.

MR CARTLAND SAID THE MARKET WAS VERY DIFFICULT TO READ AT THE MOMENT.

"ITS CURRENT STATE MAY WELL ALSO OWE SOMETHING TO THE POLITICAL

SITUATION AND TO SEASONAL FACTORS.

"GIVEN THAT INTEREST RATES ARE STILL AT LOW LEVELS IN COMPARISON WITH CURRENT INFLATION, ANOTHER OUTBURST OF SPECULATIVE ACTIVITY ON RELAXATION OF THE GUIDELINE CANNOT BE RULED OUT, PARTICULARLY IF THE POLITICAL SITUATION IMPROVES OR BECOMES LESS OF A FACTOR IN PEOPLE’S MINDS," HE SAID.

MR GARTLAND SAID IT WAS IMPORTANT THAT THE POSITIVE EFFECTS OF THE MEASURE WERE NOT EASILY THROWN AWAY BY PREMATURE RELAXATION.

/8 .........

WEDNESDAY, MARCH 3, 1993

8

MEASURES AGAINST ILLEGAL CAR RACING

*****

THE POLICE USE TRAFFIC PATROLS, RADAR SPEED DETECTORS AND ROAD BLOCKS, AS WELL AS SPECIAL UNDERCOVER, SURVEILLANCE OPERATIONS AND OTHER SPECIAL OPERATIONS TO COUNTER ILLEGAL CAR RACING.

THIS WAS STATED BY THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, IN A WRITTEN REPLY TO A QUESTION BY DR THE HON CONRAD LAM KUI-SHING IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SINCE JANUARY 1990, THE POLICE HAVE MADE 143 ARRESTS FOR THE OFFENCE OF MOTOR RACING UNDER SECTION 55 OF THE ROAD TRAFFIC ORDINANCE, MR ASPREY SAID.

HE SAID A TOTAL OF 38 PEOPLE HAD BEEN CONVICTED UNDER THIS SECTION WITH PENALTIES RANGING FROM A FINE OF $1,500 TO IMPRISONMENT OF SEVEN MONTHS.

"ARISING FROM THESE ARRESTS, THERE HAVE ALSO BEEN PROSECUTIONS AND CONVICTIONS FOR RECKLESS DRIVING AND DRIVING IN EXCESS OF THE SPEED LIMIT," HE ADDED.

HE SAID THE GOVERNMENT DID NOT KEEP STATISTICS SPECIFICALLY RELATED TO TRAFFIC ACCIDENTS, OR DEATHS OR CASUALTIES CAUSED BY ILLEGAL CAR RACING.

"EXCESS SPEED HAS BEEN A FACTOR IN SOME 13 PER CENT OF ALL TRAFFIC ACCIDENTS INVOLVING INJURIES OVER THE PAST THREE YEARS.

"HOWEVER, WE BELIEVE ONLY A SMALL PROPORTION OF SUCH ACCIDENTS HAVE INVOLVED CAR RACING," MR ASPREY SAID.

------0--------

GOVT ENCOURAGES CHINA EXCHANGE VISITS t ♦ * t t

THE GOVERNMENT WILL CONTINUE TO ENCOURAGE EXCHANGE VISITS BETWEEN OFFICIALS OF THE GOVERNMENTS OF CHINA AND HONG KONG, THE SECRETARY FOR CONSTITUTIONAL AFFAIRS, MR MICHAEL SZE, SAID TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY THE HON MARTIN BARROW IN THE LEGISLATIVE COUNCIL, MR SZE SAID THE GOVERNMENT DID NOT PRESCRIBE THE NUMBER OF VISITS THAT TOOK PLACE EACH YEAR, AS MUCH DEPENDED ON THE NEEDS OF INDIVIDUAL DEPARTMENTS.

"HOWEVER, WE EXPECT THE NUMBER OF VISITS IN 1993 TO BE BROADLY COMPARABLE TO THE NUMBER IN 1992,” HE SAID.

LAST YEAR, 354 GROUPS OF HONG KONG OFFICIALS VISITED CHINA AND 136 GROUPS OF CHINESE OFFICIALS VISITED HONG KONG.

IT IS DIFFICULT TO DISTINGUISH BETWEEN PURE EXCHANGE VISITS AND BUSINESS TRIPS: FOR EXAMPLE, CROSS-BORDER LIAISON MEETINGS ARE SOMETIMES ACCOMPANIED BY EXCHANGE VISITS AND VICE-VERSA, MR SZE SAID.

--------0 - -

/9 ........

WEDNESDAY, MARCH 3, 1993

o

WAYS ON HAND TO CURB ILLEGAL IMMIGRATION t * « t t

THE GOVERNMENT HAS PLANS TO PREVENT ILLEGAL IMMIGRATION, THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, SAID TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY THE HON MRS PEGGY LAM AT THE LEGISLATIVE COUNCIL, MR ASPREY SAID THESE INCLUDED:

SEEKING TO PREVENT ILLEGAL IMMIGRANTS (II) FROM CROSSING THE BORDER;

* MAKING IT DIFFICULT FOR THEM TO FIND WORK HERE BY IMPOSING PENALTIES FOR WORKING ILLEGALLY HERE OR EMPLOYING ILLEGAL IMMIGRANTS. THE GOVERNMENT IS ASKING THE COURT OF APPEAL TO SET A HIGHER PENALTY FOR THOSE CONVICTED OF EMPLOYING ILLEGAL IMMIGRANTS;

* STEPPING UP MEASURES, WITH THE HOUSING AUTHORITY’S

CO-OPERATION, ON CONTRACTORS CAUGHT EMPLOYING ILLEGAL

IMMIGRANTS;

* THE POLICE AND THE IMMIGRATION AND LABOUR DEPARTMENTS ARE

STEPPING UP THEIR INTELLIGENCE GATHERING AND OPERATIONS.

THE POLICE, IN ADDITION TO ENHANCE BORDER AND MARINE OPERATIONS, HAVE SET UP A SPECIAL QUICK REACTION FORCE TO DEAL WITH SITUATIONS WHEN REPORTS OF SUSPECTED Il’S ARE RECEIVED;

» REGULAR OPERATIONS TO SEARCH FOR ILLEGAL IMMIGRANTS ARE CONDUCTED AT KNOWN BLACK SPOTS, SUCH AS CONSTRUCTION SITES, FARMS AND FACTORIES; AND

* EXPRESSING CONCERN ABOUT THIS PROBLEM AT THE RECENT ANNUAL BORDER LIAISON REVIEW MEETING WITH THE GUANGDONG AUTHORITIES.

MR ASPREY SAID LIAISON AND CO-OPERATION WITH THE CHINESE AUTHORITIES WAS GOOD, ADDING THAT THE GOVERNMENT INTENDED TO RAISE ITS CONCERN WITH THE CHINESE SIDE AT A HIGHER LEVEL, CITING THE MOST RECENT INCREASE IN ILLEGAL IMMIGRATION.

THE POLICE ALSO HAVE REGUI,AR MEETINGS WITH THEIR COUNTERPARTS IN CHINA ON CRIME RELATED ISSUES AND ILLEGAL IMMIGRATION IS ONE OF THE MAJOR TOPICS ON THE AGENDA.

ON PUBLICITY, MR ASPREY SAID TWO NEW ANTI-II EMPLOYMENT ANNOUNCEMENTS IN THE PUBLIC INTEREST, AIMING AT RECRUITING MORE SUPPORT FROM EMPLOYERS AND EMPLOYEES, WERE BEING SHOWN ON TELEVISION FROM THIS WEEK.

POSTERS AND HAND-OUTS WERE ALSO PROVIDED ON CONSTRUCTION SITES, WHERE THE LARGEST NUMBER OF RECENT Il’S WERE FOUND, HE SAID.

THE POLICE WOULD ALSO STEP UP THEIR ACTION TO CATCH THOSE INVOLVED IN SUCH SYNDICATED EMPLOYMENT OF Il’S, MR ASPREY ADDED.

- 0----------

WEDNESDAY, MARCH 3, 1993

10

MEASURES TO IMPROVE DEMOLITION PRACTICE ♦ ♦ » * *

THE BUILDING AUTHORITY HAS ADOPTED A NUMBER OF MEASURES TO IMPROVE DEMOLITION PRACTICE FOLLOWING THE INVESTIGATION OF THE BUILDING COLLAPSE AT WING ON STREET.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY DR THE HON HUANG CHEN-YA IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR EASON SAID THESE MEASSURES INCLUDED ACCORDING HIGH PRIORITY TO DEMOLITION AND TREATING THEM AS A MATTER OF URGENCY AND ADVISING OTHER PARTIES INVOLVED AT THE EARLIEST POSSIBLE TIME REGARDING THE NEED FOR PRECAUTIONARY AND PREPARATORY WORK.

THE GOVERNMENT CONTRACTOR WOULD ALSO BE GIVEN SPECIFIC INSTRUCTIONS REGARDING DATES FOR COMMENCING AND COMPLETING DEMOLITION WORKS, AND BUILDINGS CLOSED UNDER CLOSURE ORDERS WOULD BE KEPT UNDER SURVEILLANCE.

MOREOVER, THE EFFECT OF WORK AT CONSTRUCTION SITES ON NEARBY DANGEROUS BUILDINGS WOULD BE CONSIDERED EXPEDITIOUSLY AND GREATER EMPHASIS WOULD BE PLACED ON BUILDING OWNERS’ STATUTORY DUTIES AND LEGAL LIABILITY IN ENSURING BUILDING SAFETY, HE SAID

’’THE BUILDINGS ORDINANCE OFFICE IS ALSO CONSIDERING FURTHER MEASURES TO ENSURE THE SAFETY OF PASSERS-BY, SUCH AS STREET CLOSURE DURING THE DEMOLITION PROCESS,” HE SAID.

------0-------

FEES CHARGED BY MEDICAL PRACTITIONERS MONITORED

*****

THE GOVERNMENT MONITORS THE LEVEL OF FEES CHARGED BY PRIVATE PRACTITIONERS THROUGH VARIOUS MEANS, THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SHE SAID THERE WAS NO INDICATION THAT THE COMMUNITY AS A WHOLE WAS BEING DENIED ADEQUATE MEDICAL CARE BECAUSE OF EXORBITANT SURGICAL FEES IN THE PRIVATE SECTOR.

"IF, HOWEVER, THERE WAS CLEAR INDICATION THAT CONSUMER INTERESTS WERE BLATANTLY IGNORED BY THE OPERATION OF THE PRIVATE SECTOR, GOVERNMENT INTERVENTION WOULD BE JUSTIFIED," MRS WONG SAID TN A WRITTEN REPLY TO A QUESTION BY THE HON CHIM PUI-CHUNG.

’’ANY UNTOWARD GOVERNMENT INTERVENTION MIGHT CREATE MORE ANOMALIES THAN SUCH INTERVENTION SOUGHT TO REMOVE."

UNLIKE PUBLIC SECTOR CHARGES WHICH ARE STANDARDISED, MRS WONG SAID THE FEES CHARGED BY PRIVATE SURGEONS DEPEND ON MANY FACTORS, SUCH AS THEIR EXPERIENCE AND KNOWLEDGE IN A PARTICULAR SPECIALTY, AND THE COMPLEXITY OF THE PROCEDURE PERFORMED.

/THERE ARE .......

WEDNESDAY, MARCH 3, 1993

11

THERE ARE NO FIXED CHARGING CRITERIA AND THE FEES ARE A REFLECTION OF WHAT PATIENTS ARE WILLING TO PAY.

IT WOULD ALSO NOT BE MEANINGFUL TO COMPARE THESE WITH DOCTORS’ CHARGES IN OTHER COUNTRIES DUE TO DIFFERENCES IN GROSS NATIONAL PRODUCT, STANDARD OF LIVING, INCOME, HEALTH SYSTEM AND OTHER SOCIAL FACTORS.

AS REGARDS THE 10 COMPLAINTS OF DISSATISFACTION RECORDED BY THE CONSUMER COUNCIL OVER MEDICAL CHARGES QUOTED BY MEDICAL PRACTITIONERS, THE SECRETARY SAID HIGH CHARGES IN THEMSELVES DID NOT CONSTITUTE GROUNDS FOR PROFESSIONAL MISCONDUCT.

”IF A PATIENT IS QUOTED A FEE FOR A SURGICAL PROCEDURE IN ADVANCE, IT IS UP TO THE PATIENT TO ACCEPT OR REJECT THE FEES,” SHE SAID.

’’HOWEVER, IF THE DOCTOR DOES NOT DISCLOSE A FEE TO HIS PATIENT ON REQUEST, THE MATTER SHOULD BE REFERRED TO THE HONG KONG MEDICAL ASSOCIATION OR TO THE MEDICAL COUNCIL OF HONG KONG FOR ARBITRATION OR INVESTIGATION, RESPECTIVELY.

”IF THE DOCTOR CHARGES A FEE OTHER THAN THE ONE QUOTED AND AGREED ON WITHOUT GOOD REASON, SUCH AS A CHANGE IN THE PATIENT’S MEDICAL CONDITION, THERE MAY BE GROUNDS FOR COMPLAINT OR LEGAL ACTION.”

MRS WONG SAID THE HONG KONG MEDICAL ASSOCIATION HAD PRODUCED A POSTER FOR PRIVATE MEDICAL PRACTITIONERS TO PUT UP IN THEIR CLINICS TO REMIND PATIENTS OF THEIR RIGHT TO KNOW THE FEES.

THE GOVERNMENT ALSO PUBLISHES A SCHEDULE OF FEES FOR PUBLIC HOSPITALS AND CLINICS INFORMATION AND FOR REFERENCE.

IN ADDITION, THE MEDICAL INSURANCE ASSOCIATION OF HONG KONG AND THE HONG KONG MEDICAL ASSOCIATION HAVE PUBLISHED THE RESULTS OF THEIR SURVEYS ON DOCTORS’ FEES AND PRIVATE HOSPITALS AND PRIVATE DOCTORS HAVE BEEN ENCOURAGED TO DO LIKEWISE.

- - 0 -

SHA EXPLAINS POLICY ON KARAOKES *****

AS MOST KARAOKE ESTABLISHMENTS ARE RUN EITHER AS PART OF A RESTAURANT OR AS A CLUB, THE GOVERNMENT’S POLICY IS TO CONTROL THEM THROUGH EXISTING LICENSING REGIMES.

THIS WAS STATED BY THE SECRETARY FOR HOME AFFAIRS, MR MICHAEL SUEN, IN A WRITTEN REPLY TO A QUESTION BY THE HON MAN SAI-CHEONG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

/RESTAURANTS ARE

WEDNESDAY, MARCH 3, 1993

12

RESTAURANTS ARE LICENSED BY THE URBAN COUNCIL OR THE REGIONAL COUNCIL UNDER THE PUBLIC HEALTH AND MUNICIPAL SERVICES ORDINANCE IN WHICH FIRE SAFETY REQUIREMENTS ARE IMPOSED AS PART OF THE LICENSING CONDITIONS.

BUT CLUBS ARE LICENSED BY THE SECRETARY FOR HOME AFFAIRS UNDER THE CLUBS (SAFETY OF PREMISES) ORDINANCE IN THE INTERESTS OF FIRE AND BUILDING SAFETY.

MR SUEN SAID IF OBSTRUCTIONS TO FIRE ESCAPES OR ANY IRREGULARITIES WERE IDENTIFIED BY THE FIRE SERVICES DEPARTMENT, EITHER THROUGH INSPECTIONS OR IN RESPONSE TO COMPLAINTS, FIRE HAZARD ABATEMENT ACTION OR PROSECUTION WOULD BE TAKEN, AS APPROPRIATE, UNDER THE FIRE SERVICES ORDINANCE.

AS FOR KARAOKES, MR SUEN SAID ALTHOUGH THERE WERE NO INDICATIONS THAT THEY WERE NOT COMPLYING WITH REGULATIONS ON FIRE ESCAPES, THESE ESTABLISHMENTS HAVE TO COMPLY WITH THE RELEVANT FIRE REGULATIONS BEFORE THEY CAN BE LICENSED.

ON TRIAD ACTIVITIES, MR SUEN SAID IT WAS BELIEVED THAT TRIADS SOUGHT TO EXTORT MONEY FROM KARAOKE ESTABLISHMENTS IN RETURN FOR PROTECTION IN A MANNER SIMILAR TO THEIR ACTIVITIES IN OTHER PLACES OF PUBLIC ENTERTAINMENT.

IN 1991, THERE WERE SIX CASES INVOLVING OFFENCES OF UNLAWFUL SOCIETIES (MAINLY TRIAD SOCIETIES), TWO CASES OF PROCUREMENT OF WOMEN FOR IMMORAL PURPOSES, AND TWO MINOR DRUG OFFENCES IN KARAOKE ESTABLISHMENTS.

LAST YEAR, THERE WERE 23 CASES RELATING TO UNLAWFUL SOCIETIES, ONE CASE ON PROCUREMENT OF WOMEN FOR IMMORAL PURPOSES, ONE CASE OF POSSESSION OF DRUGS FOR TRAFFICKING AND THREE MINOR DRUG CASES.

TO TACKLE THESE PROBLEMS, THE POLICE HAVE DEPLOYED CONSIDERABLE MANPOWER TO MOUNT OPERATIONS AGAINST ILLEGAL ACTIVITIES IN THESE PLACES AND CLOSE LIAISON WAS MAINTAINED WITH THE OPERATORS OF THESE ESTABLISHMENTS, MR SUEN SAID.

AS FOR NOISE EMANATED FROM KARAOKES, MR SUEN POINTED OUT THAT IF THIS CAUSED NUISANCE TO NEARBY RESIDENTS, STAFF OF THE ENVIRONMENTAL PROTECTION DEPARTMENT WOULD ADVISE AND WARN THE OPERATORS.

"IF NECESSARY, NOISE ABATEMENT NOTICES WILL BE ISSUED TO THE OFFENDING ESTABLISHMENTS," HE SAID.

IN 1990, 1991 AND 1992, THE ENVIRONMENTAL PROTECTION DEPARTMENT RECEIVED 88, 33 AND 27 SUCH NOISE COMPLAINTS RESPECTIVELY.

- - 0----------

/13 ........

WEDNESDAY, MARCH 3, 1993

13

COMPASSIONATE REHOUSING QUOTA UNDER REGULAR REVIEW » * * * *

THE QUOTA FOR COMPASSIONATE REHOUSING IS SUBJECT TO REGULAR REVIEW AND MONITORING AND THE HOUSING AUTHORITY IS PREPARED TO ADJUST IT TO MEET DEMAND IF NECESSARY.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY THE HON LAU CHIN-SHEK IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR EASON EXPLAINED THAT COMPASSIONATE REHOUSING WAS OFFERED TO APPLICANTS ON THE RECOMMENDATIONS OF THE SOCIAL WELFARE DEPARTMENT AFTER CAREFUL CONSIDERATION OF THE INDIVIDUAL CIRCUMSTANCES AND HAVING REGARD TO A SET OF QUALIFYING CRITERIA SUCH AS INCOME LEVEL, PROPERTY OWNERSHIP AND MEDICAL OR SOCIAL NEEDS.

ALL CASES WERE SUBJECT TO THE USUAL VETTING SUCH AS DUPLICATION CHECKS AND PRE-LETTING INTERVIEWS, HE SAID.

"ON AVERAGE, IT TAKES ABOUT THREE WEEKS TO COMPLETE THE FORMALITIES AND ALLOCATE A FLAT, BUT CASES CAN SOMETIMES TAKE UP TO EIGHT MONTHS TO PROCESS IF THE APPLICANT REPEATEDLY TURNS DOWN REHOUSING OFFERS FOR ONE REASON OR ANOTHER,” MR EASON SAID.

HE NOTED THAT THE QUOTA FOR COMPASSIONATE REHOUSING REMAINED AT 1,200 RENTAL FLATS EACH YEAR IN THE PAST THREE YEARS AND EXPERIENCE HAD SHOWN THAT THE QUOTA WAS ADEQUATE.

’’SINCE 1991, A SUB-QUOTA OF 100 HAS BEEN SET ASIDE FOR DIVORCEES WHO HAVE BEEN GRANTED CUSTODY OF THEIR CHILDREN,” HE ADDED.

------0--------

TEACHER WASTAGE RATES * * *

THE OVERALL WASTAGE RATE FOR PRIMARY SCHOOL TEACHERS FOR THE SCHOOL YEAR 1990/91 WAS 8.6 PER CENT, COMPARED WITH 8.8 PER CENT FOR 1989/90, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

AS REGARDS SECONDARY SCHOOL TEACHERS, THE WASTAGE RATES FOR 1990/91 AND 1989/90 WERE 10.9 PER CENT AND 11.5 PER CENT RESPECTIVELY.

IN HIS WRITTEN REPLY TO A QUESTION BY THE HON TIK CHI-YUEN, MR CHAN SAID THE WASTAGE RATES WERE FOR VARIOUS RANKS OF TEACHERS INCLUDING CERTIFICATED MASTERS, ASSISTANT MASTERS, SENIOR ASSISTANT MASTERS, PRINCIPAL ASSISTANT MASTERS AND GRADUATE TEACHERS OF ALL RANKS.

/WASTAGE RATES .......

WEDNESDAY, MARCH 3, 1993

14

Wastage Rates for various ranks of teachers in primary and secondary school____________

Wastage Rate(%)

Primary

Secondary

Years of Service'- 1989/90 19.90/91, 1989/90 1990/91

(i) Certificated Master (CM)

0-4 9.65 11.1 11.43 13.62

5-9 7.68 6.88 9.91 9.59

10 - 14 7.61 5.99 6.60 7.21

15 - 19 8.33 7.83 5.75 7.14

20 - 24 9.36 9.37 5.65 9.16

25 - 29 15.75 12.21 13.79 10.91

30 or above 18.52 26.46 5.56 26.32

(ii) Assistant Master (AM)

0-4 4.65 4.33 5.00 4.44

5-9 8.29 5.23 6.55 4.67

10 - 14 6.64 6.43 5.41 3.80

15 - 19 11.43 6.96 6.52 7.07

20 - 24 10.53 5.41 4.76 2.27

25 - 29 3.03 15.38 6.25 4.35

30 or above 8.00 10.00 25.00 37.50

(iii) Senior Assistant Masters (SAM)

0-4 3.39 9.09 5.46 3.47

5-9 7.41 11.86 7.14 7.14

10 - 14 9.09 8.33 4.24 11.21

15 - 19 16.67 10.71 14.93

20 - 24 5.71 9.09

25 - 29 17.24 4.76

30 or above 33.33 25.00 9.09

(iv) Principal Assistant Masters (PAM)

0-4 8.33 7.06

5-9 12.90 10.29

10 - 14 22.22 30.00

15-19 11.11 25.00

20 - 24

25 - 29 50.00

30 or above

(v) Graduate Teachers of all ranks

0-4 18.63 16.39

5-9 8.33 8.70

10 - 14 7.30 7.55

15 - 19 7.86 6.70

20 - 24 9.21 10.44

25 - 29 8.81 9.18

30 or above 25.00 13.04

* Years of Services refers to the length of service in that particular rank.

/WASTAGE RATE

WEDNESDAY, MARCH 3, 1993

15

Wastage Rate for primary and secondary school teachers by district

Wastage Rate

Primary

Secondary

District 1989/90 1990/91 1989/90 1990/91

Central & Western 13.33% 8.57% 12.28% 9.79%

Wanchai 9.78% 10.07% 12.00% 13.49%

Eastern 10.07% 8.83% 10.11% 11.63%

Southern 9.42% 11.50% 14.11% 13.37%

Sham Shui Po 9.38% 7.90% 10.59% 8.76%

Mong Kok 9.67% 9.83% 8.23% 12.17%

Yau Tsim 8.66% 10.59% 13.09% 11.38%

Kowloon City 10.29% 11.59% 13.55% 12.60%

Wong Tai Sin 8.24% 7.57% 10.73% 9.38%

Kwun Tong 8.61% 7.63% 12.73% 11.03%

Tsuen Wan 7.46% 7.47% 10.52% 8.90%

Tuen Mun 8.47% 7.71% 9.78% 10.21%

Yuen Long 8.10% 7.58% 12.57% 11.67%

North 6.48% 7.90% 10.16% 10.99%

Tai Po 8.15% 10.02% 11.82% 12.56%

Sha Tin 8.84 8.01% 10.07% 9.80%

Sai Kung 8.20% 10.26% 12.45% 11.70%

Islands 12.13% 9.33% 9.80% 9.52%

Kwai Tsing 7.38% 7.95% 11.45% 9.59%

Overall 8.82% 8.62% 11.52% 10.88%

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/16 ........

WEDNESDAY, MARCH 3, 1993

16

3,000 PUBLIC RENTAL FLATS ALLOCATED AT TIN SHUI WAI *****

ABOUT 3,000 PUBLIC RENTAL FLATS AT TIN SHUI WAI HAD BEEN ALLOCATED TO WAITING LIST APPLICANTS BY THE END OF JANUARY THIS YEAR.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY THE HON MRS ELSIE TU IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR EASON SAID THE FIRST RENTAL FLATS AT TIN SHUI WAI WERE READY FOR ALLOCATION IN APRIL 1992.

THE NUMBER OF PUBLIC RENTAL UNITS PRODUCED BY THE HOUSING AUTHORITY IN 1989/90, 1990/91 AND 1991/92 WERE 33,900, 32,600 AND

21,400 RESPECTIVELY.

’’HOWEVER, THE NUMBERS OF FLATS ALLOCATED WERE HIGHER BECAUSE FLATS RECOVERED FROM SITTING TENANTS ALSO BECAME AVAILABLE,” MR EASON SAID.

THE NUMBER OF FLATS ALLOCATED IN THE THREE YEARS WERE 46,700, 43,700 AND 42,300.

------0-------

MEASURES TO DETECT FRAUD IN HOS APPLICATIONS

*****

THE HOUSING AUTHORITY CONSIDERS THE EXISTING MEASURES TO DETECT THE SUBMISSION OF FALSE INFORMATION IN CONNECTION WITH APPLICATIONS FOR HOME OWNERSHIP/PRIVATE SECTOR PARTICIPATION SCHEMES FLATS TO BE EFFICIENT AND EFFECTIVE BUT WILL KEEP THEM UNDER REVIEW.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY THE HON GILBERT LEUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR EASON SAID SOME CASES CAME TO LIGHT ON RECEIPT OF COMPLAINTS BUT THE MAJORITY WERE DETECTED BY THE HOUSING DEPARTMENT THROUGH DUPLICATION CHECKS ON PROPERTY OWNERSHIP WITH THE LAND REGISTRY.

HE SAID UNDER-REPORTING OF INCOME WAS NORMALLY VERIFIED THROUGH THE APPLICANT’S EMPLOYER AND OTHER RELEVANT SOURCES.

"THE ADMINISTRATIVE COST INVOLVED IN DETECTION IS ABOUT $600,000 A YEAR (AT 1992 PRICES),’’ HE SAID.

MR EASON POINTED OUT THAT UNDER THE HOUSING ORDINANCE, THOSE CONVICTED OF KNOWINGLY GIVING FALSE STATEMENTS IN CONNECTION WITH AN APPLICATION FOR ASSISTED HOUSING WERE LIABLE TO A FINE OF $200,000 AND IMPRISONMENT FOR ONE YEAR.

/IN ADDITION .......

WEDNESDAY, MARCH 3, 1993

17

IN ADDITION, HE NOTED THAT THE COURT MIGHT ORDER THE OFFENDER TO SELL THE FLAT BACK TO THE AUTHORITY OR TO PAY AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE MARKET VALUE OF THE FLAT AND ITS ORIGINAL PRICE.

THE PENALTY PROVISION WAS CONSIDERED ADEQUATE, HE SAID, ADDING THAT 33 CASES OF SUBMITTING FALSE INFORMATION WERE DETECTED BETWEEN 1988/89 AND 1992/93.

--------0-----------

SHORTFALL PROJECTED IN KWAI CHUNG PRIMARY SCHOOL PLACES *****

IT WILL NOT BE POSSIBLE FOR ALL THE PRESENT BI-SESSIONAL PRIMARY SCHOOLS IN KWAI CHUNG TO TURN WHOLE-DAY NOW BECAUSE OF A SHORTFALL OF PRIMARY SCHOOL PLACES, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN HIS WRITTEN REPLY TO A QUESTION BY THE HON LEE WING-TAT, MR CHAN EXPLAINED THAT FOR THE NEXT SEVEN YEARS, THE PRIMARY SCHOOL AGE GROUP IN THE DISTRICT WAS PROJECTED TO INCREASE TO 21,500.

BUT THE AVAILABILITY OF PLACES IS EXPECTED TO DROP TO 19,950 DUE TO SMALLER CLASS SIZES AND SOME SCHOOLS IN OLDER ESTATES CLOSING DOWN, THUS GIVING A SHORTFALL OF 4,420 PLACES.

"HOWEVER, INDIVIDUAL SCHOOLS IN LOCALITIES WITH NO SUPPLY OF PLACES PROBLEMS OVER THE PLANNING PERIOD ARE WELCOME TO CONSULT THE EDUCATION DEPARTMENT ON THE FEASIBILITY OF OPERATING ON A WHOLE-DAY BASIS," MR CHAN SAID.

"UNDER EXISTING POLICY, NEW PRIMARY SCHOOLS TO BE BUILT FOR KWAI CHUNG WILL, AS FAR AS POSSIBLE, BE OPERATED IN THE WHOLE-DAY MODE," HE ADDED.

LAST YEAR, THERE WAS A THEORETICAL SURPLUS OF 12,350 PRIMARY SCHOOL PLACES IN KWAI CHUNG.

THIS WAS BECAUSE THE 24 PRIMARY SCHOOLS IN THE DISTRICT HAD A TOTAL POTENTIAL CAPACITY FOR 28,050 PLACES, AGAINST THE ACTUAL DEMAND OF 15,700 CHILDREN OF PRIMARY SCHOOL AGE.

/18 ........

WEDNESDAY, MARCH 3, 1993

18

APPOINTMENT OF VISITING TEACHERS WORLD PRACTICE * * * * *

IT IS A COMMON PRACTICE INTERNATIONALLY FOR HIGHER INSTITUTIONS TO APPOINT VISITING TEACHING STAFF ON LEAVE FROM THEIR OWN INSTITUTIONS TO PROMOTE EXCHANGE OF IDEAS AND EXPERTISE, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY THE HON EMILY LAU WAI-HING, MR CHAN SAID THE DESIRABILITY OR ACCEPTABILITY OF APPOINTING ACADEMIC STAFF WHO WERE ON SABBATICAL LEAVE FROM OVERSEAS INSTITUTIONS WAS NOT A POLICY MATTER FOR THE GOVERNMENT.

"OUR UNIVERSITIES ARE ESTABLISHED BY STATUE AND ENJOY FULL AUTONOMY IN THE MANAGEMENT OF THEIR ACADEMIC AFFAIRS, INCLUDING THE SELECTION AND APPOINTMENT OF ACADEMIC STAFF,” HE SAID.

AS AT THE BEGINNING OF THE 1992/93 ACADEMIC YEAR, TWO OF THE 58 SENIOR TEACHING STAFF AT THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY WERE ON SABBATICAL LEAVE FROM OVERSEAS ACADEMIC INSTITUTIONS.

THIS COMPARES WITH TWO OR THREE OF THE 312 SENIOR ACADEMIC STAFF AT THE UNIVERSITY OF HONG KONG AND FIVE OF THE 257 AT THE CHINESE UNIVERSITY OF HONG KONG.

- - 0 - -

TRAINING AND JOB OPPORTUNITIES FOR VISUALLY-IMPAIRED

*****

THE VOCATIONAL TRAINING COUNCIL PROVIDES TRAINING FOR ALL CATEGORIES OF DISABLED PERSONS, INCLUDING V ISUALLY-I MPA IRED, TN ITS SKILLS CENTRES FOR THE DISABLED, TECHNICAL INSTITUTES AND INDUSTRIAL TRAINING CENTRES, THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, SAID.

IN A WRITTEN REPLY TO A QUESTION BY THE HON TAM YIU-CHUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MRS WONG SAID VISUALLY-IMPAIRED PERSONS COULD TAKE COURSES SPECIALLY DESIGNED FOR THEM OR COURSES OPEN TO PERSONS WITH VARIOUS DISABILITIES IN THE SKILLS CENTRES.

SHE SAID! "FOR THOSE WHO ARE CAPABLE OF FOLLOWING CRAFT AND

TECHNICIAN LEVEL COURSES, SPECIAL SUPPORT SERVICES ARE PROVIDED TO ENABLE THEM TO FOLLOW THE MAINSTREAM TRAINING' IN TECHNICAL INSTITUTES AND INDUSTRIAL TRAINING CENTRES.

"THESE COURSES ENABLE V ISUALLY-I MPA I RED PERSONS TO ACQUIRE MARKETABLE SKILLS SO THAT THEY ARE BETTER EQUIPPED FOR SEEKING EMPLOYMENT."

ON EMPLOYMENT, MRS WONG SAID THE SELECTIVE PLACEMENT DIVISION

OF THE LABOUR DEPARTMENT PROVIDED JOB PLACEMENT SERVICE FOR DISABLED PERSONS LOOKING FOR EMPLOYMENT IN THE OPEN MARKET AS WELL AS POSTPLACEMENT FOLLOW-UP SERVICE TO HELP DISABLED PERSONS SETTLE IN THEIR JOBS .

/IN 1992

WEDNESDAY, MARCH 3, 1993

19

IN 1992, THE DIVISION DEALT WITH 2,705 REGISTRATIONS, OF WHICH 164 WERE FROM VISUALLY-IMPAIRED PERSONS.

OUT OF THE 1,366 WHO WERE SUCCESSFULLY PLACED INTO JOBS COMPATIBLE WITH THEIR ABILITY AND APTITUDE, 33 WERE VISUALLY-IMPAIRED.

MRS WONG ALSO SAID ACCORDING TO THE CENTRAL REGISTRY FOR REHABILITATION, '[’HERE WERE SOME 5,170 VI SUALLY-I MPA I RED PERSONS AGED BETWEEN 18 AND 65 AS AT THE END OF 1992.

AND BASED ON THE EMPLOYMENT STATISTICS FROM TWO LEADING NONGOVERNMENTAL ORGANISATIONS SERVING VISUALLY- IMPAIRED PERSONS, IT IS ESTIMATED THAT ABOUT HALF OF THEM ARE IN EMPLOYMENT, SHE ADDED.

------0-------

OFFICE SET UP TO MONITOR WEST KOWLOON RECLAMATION

*****

AN ENVIRONMENTAL PROJECT OFFICE HAS BEEN SET UP TO MONITOR AND ADVISE ON ENVIRONMENTAL MATTERS FOR THE WEST KOWLOON RECLAMATION PROJECT.

THIS WAS STATED BY THE SECRETARY FOR WORKS, MR JAMES BLAKE, IN A WRITTEN REPLY TO A QUESTION BY THE HON JAMES TO IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR BLAKE SAID WITH STRICT ENFORCEMENT OF THE CURRENT ENVIRONMENTAL LEGISLATION AND CLOSE SITE SUPERVISION, IT WAS EXPECTED THAT MITIGATION MEASURES TAKEN WOULD GREATLY ABATE ENVIRONMENTAL POLLUTION DURING CONSTRUCTION.

THESE MEASURES INCLUDED THE USE OF QUIET PLANT AND NOISE BARRIERS, AND CONTROL MEASURES SUCH AS WATERING OF EXPOSED SITE SURFACES, USE OF WHEEL AND VEHICLE BODY WASHING, COVERING OF SPOIL VEHICLES TO REDUCE DUST LEVEL.

MR BLAKE SAID THERE WAS NO DETERIORATING SEWERAGE PROBLEM IN THE WEST KOWLOON WHILE RECLAMATION WORKS WERE IN PROGRESS. INSTEAD, WATER QUALITY IN THE WATER RECEPTION AREA THERE WAS IMPROVING.

THE WATER QUALITY WOULD BE FURTHER IMPROVED WITH THE COMPLETION OF TWO DRY WEATHER FLOW (DWF) INTERCEPTORS BY THE END OF THIS YEAR AND A FURTHER 10 DWF INTERCEPTORS BY THE END OF 1994.

’’THE REMAINING POLLUTANT LOAD IN THE STORM DRAINS WILL BE DEALT WITH BY THE REMOVAL OF ALL EXPEDIENT CONNECTIONS IN THE AREA, AND WHEN CONTROL UNDER THE WATER POLLUTION CONTROL ORDINANCE IS EXTENDED TO THE VICTORIA HARBOUR WATER CONTROL ZONE AFTER 1995,” HE ADDED.

/?0 ........

WEDNESDAY, MARCH 3, 1993

20

PRESENT DRIVING *

ARRANGEMENTS WORK WELL » » t »

THE PRESENT DRIVING ARRANGEMENTS IN HONG KONG WORK SATISFACTORILY IN PRACTICE AND THERE ARE NO PLANS TO CHANGE FROM THE RIGHT-HAND DRIVE SYSTEM TO LEFT-HAND DRIVE.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, IN A WRITTEN REPLY TO A QUESTION BY THE HON STEVEN POON IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR LEUNG SAID MORE THAN 20,000 VEHICLES CROSSED THE BORDER EACH DAY AND THEY WERE ABLE TO COPE WITH THE DIFFERENT DRIVING SYSTEMS ON EITHER SIDE WITHOUT SERIOUS DIFFICULTY.

"IF WE WERE TO CHANGE THE SYSTEM IN HONG KONG, THIS WOULD BE ENORMOUSLY EXPENSIVE AND INCONVENIENT TO THE PUBLIC. MAJOR ALTERATIONS WOULD BE NEEDED TO OUR ROAD INFRASTRUCTURE AND THERE WOULD INEVITABLY BE ROAD SAFETY IMPLICATIONS," HE SAID.

MR LEUNG POINTED OUT THAT THE DIFFERENCE IN DRIVING SYSTEMS BETWEEN HONG KONG AND CHINA WAS NOT UNIQUE.

"FOR EXAMPLE, THERE IS A SUBSTANTIAL MOVEMENT OF VEHICLES BETWEEN THE UK AND CONTINENTAL EUROPE, WHICH WILL INCREASE SIGNIFICANTLY WITH THE OPENING OF THE CHANNEL TUNNEL, BUT THERE ARE NO PLANS TO STANDARDISE DRIVING SYSTEMS," HE SAID.

"THE FACT IS THAT WITH CARE AND COMMON SENSE ON THE PART OF THE MOTORISTS, THE TWO DRIVING SYSTEMS CAN CO-EXIST SATISFACTORILY," HE SAID.

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SEASONAL RISE IN CRIME ON I.ANTAU * t * * t

THE INFLUX OF VISITORS TO LANTAU ISLAND DURING THE SUMMER MONTHS ACCOUNTS FOR THE INCREASE IN THE MONTHLY AVERAGE REPORTED CRIME BETWEEN JULY AND SEPTEMBER, COMPARED TO THE FIRST SIX MONTHS OF LAST YEAR.

THIS WAS STATED TODAY (WEDNESDAY) BY THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, IN A WRITTEN REPLY TO A QUESTION BY THE HON ALBERT CHAN WAI-YIP IN THE LEGISLATIVE COUNCIL.

MR ASPREY SAID THE INCREASE WAS AN EXPECTED SEASONAL FLUCTUATION.

’’POLICE STRENGTH ON THE ISLAND IS INCREASED DURING THE SUMMER MONTHS TO COPE WITH THE INCREASE IN POPULATION,” HE SAID.

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WEDNESDAY, MARCH 3, 1993

21

AIRLINES PROMPTLY REMOVE INADMISSIBLE PERSONS

IMMIGRATION OFFICERS ARE FLEXIBLE WHEN AIRLINES HAVE DIFFICULTIES IN CARRYING THOSE REFUSED ENTRY OUT OF HONG KONG ON THE NEXT AVAILABLE FLIGHT, THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, SAID.

THEY LIAISE WITH THE AIRLINES AND DO NOT REQUIRE THEM TO REMOVE ORDINARY PASSENGERS IN ORDER TO FIND SEATS FOR THE REMOVAL OF INADMISSIBLE PERSONS, HE ADDED.

IN A WRITTEN REPLY TO A QUESTION BY THE HON HOWARD YOUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MR ASPREY SAID WHEN THAT DAY’S DIRECT FLIGHTS WERE FULLY BOOKED, ALTERNATIVE ARRANGEMENTS WOULD BE MADE.

"WE SEEK TO MINIMISE THE PROLONGED DETENTION OF AN INADMISSIBLE PERSON AND THE EXPENSES INCURRED IN MAINTAINING HIM HERE," HE SAID.

THESE EXPENSES ARE BORNE BY THE AIRLINE WHICH BROUGHT THE INADMISSIBLE PERSON TO HONG KONG.

AIRLINES SEEK TO AVOID THE EXPENSE OF LOOKING AFTER PASSENGERS REFUSED LANDING AND GENERALLY HAVE ENOUGH FLEXIBILITY, IN TERMS OF STAND-BY OR STAFF PASSENGERS TO ENABLE THEM TO REMOVE INADMISSIBLE PERSONS WITHOUT INCONVENIENCING NORMAL PASSENGERS, MR ASPREY SAID.

UNDER THE IMMIGRATION ORDINANCE, ANY PERSON WHO CONTRAVENES THE DIRECTION OF AN IMMIGRATION OFFICER FOR THE REMOVAL OF AN INADMISSIBLE PERSON SHALL BE LIABLE ON CONVICTION TO A FINE OF $20,000.

MR ASPREY SAID NO AIRLINE HAD BEEN PROSECUTED FOR CONTRAVENING SUCH A DIRECTION.

"IMMIGRATION OFFICERS APPRECIATE THE DIFFICULTIES FACED BY AIRLINES AND DO NOT ISSUE A DIRECTION LIGHTLY," HE SAID.

IN EXERCISING THESE POWERS, IMMIGRATION OFFICERS FOLLOW STANDARDS AND PRACTICES RECOMMENDED BY THE CONVENTION ON INTERNATIONAL CIVIL AVIATION.

PROMPT REMOVAL OF AN INADMISSIBLE PERSON AVOIDS THE PROLONGED DETENTION OF THE PERSON CONCERNED AND THE RISK OF HIS BEING REJECTED BY HIS POINT OF ORIGIN BECAUSE OF A TIME LAPSE, MR ASPREY SAID.

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/22 ........

WEDNESDAY, MARCH 3, 1993

22

EDUCATION DEPARTMENT EMBARKS ON 16 RESEARCH PROJECTS

*****

THE EDUCATION DEPARTMENT HAS EMBARKED ON 16 TEACHING AND LEARNING-RELATED RESEARCH PROJECTS SINCE 1988, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID.

IN A WRITTEN REPLY TO A QUESTION BY THE HON CHEUNG MAN-KWONG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MR CHAN SAID THE REPORTS ON THE COMPLETED RESEARCH PROJECTS COULD BE MADE AVAILABLE TO PARTIES WHICH HAD A LEGITIMATE INTEREST IN THEM.

"THESE REPORTS ARE NOT INTENDED FOR RELEASE TO THE GENERAL PUBLIC BECAUSE THEY WERE CARRIED OUT TO MEET DEPARTMENTAL NEEDS," HE SAID.

HE ALSO EXPLAINED THAT THERE HAD BEEN LITTLE PUBLIC INTEREST IN THE FINDINGS OF THESE PROJECTS TO WARRANT WIDE PUBLICATION.

ON THE COSTS OF THE PROJECTS, MR CHAN SAID A CLEAR APPORTIONMENT WAS NOT POSSIBLE BECAUSE THE PROJECTS WERE CARRIED OUT BY DEPARTMENTAL STAFF.

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REMEDIAL CLASSES FOR STUDENTS WITH STUDY PROBLEMS

*****

UNLESS THERE ARE SPECIAL CIRCUMSTANCES SUCH AS PROTRACTED ILL HEALTH, THE EDUCATION DEPARTMENT CONSIDERS PRIVATE TUITION TO BE UNNECESSARY.

THIS WAS STATED BY THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, IN A WRITTEN REPLY TO A QUESTION BY THE HON ERIC LI IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

ASKED WHETHER THE GOVERNMENT WOULD CONDUCT A SURVEY ON PRIVATE TUITION, MR CHAN SAID: "SCHOOLS OPERATE REMEDIAL CLASSES FOR THOSE WHO HAVE PROBLEMS WITH THEIR WORK AND ADDITIONAL TEACHERS ARE PROVIDED FOR THIS PURPOSE.

"FOR THIS REASON, THE DEPARTMENT HAS NO PLANS TO CONDUCT ANY SURVEY ON THE SUBJECT."

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DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777 SUPPLEMENT - BUDGET

WEDNESDAY, MARCH 3, 1993

CONTENTS PAGE NO.

BUDGET WILL FURTHER INCREASE PEOPLE'S WELLBEING: FS .......... 1

HK CONTINUES TO FLOURISH ..................................... 2

ECONOMIC PROSPECTS FOR 1993 VERY ENCOURAGING: FS ............. 4

INFLATION - A COST OF GROWTH ................................. 5

TRADE RESTRICTIONS WILL REMAIN AN ANXIETY: FS ................ 7

HK IS A PREDOMINANTLY SERVICE ECONOMY ........................ 9

FS OUTLINES BUDGET STRATEGY .................................. 12

BUDGET SURPLUS OF $20.5 BILLION FORECAST ..................... 13

GOVT SPENDING TO RISE TO $132.5 BILLION ...................... 16

NEW EXPENDITURE INITIATIVES FOR 1993 ......................... 17

1993 EXPENDITURE IN PERSPECTIVE .............................. 20

MAJOR SALARIES TAX CONCESSIONS PROPOSED ...................... 21

NO CHANGE IN CORPORATE PROFITS TAX ........................... 24

TIME RIGHT TO REMOVE DUTY ON COSMETICS ....................... 26

CHEST TO BENEFIT FROM REMOVAL OF TAX ......................... 26

TRANSPORT CONCESSIONS FOR DISABLED, ELDERLY .................. 27

/PROPOSAL FOR .......

PROPOSAL FOR COMPOSITE TAX RETURNS ............................. 28

MODEST BUDGET DEFICIT OF $3.4 BILLION .......................... 29

LEGCO'S ADVICE A MAJOR INPUT ................................... 31

FS GIVES BUDGET SUMMARY ON TV .................................. 32

TRANSCRIPT OF PRESS CONFERENCE BY FINANCIAL SECRETARY, MR HAMISH MACLEOD, ON HIS BUDGET ................................ 34

LABOUR CHIEF WELCOMES MORE FUND TO PROTECT WORKERS ............. 42

SRC WELCOMES ADDITIONAL $30 MILLION ARTS FUND .................. 42

FINANCIAL SECRETARY TALKS TO RADIO CALLERS ..................... 44

WEDNESDAY, MARCH 3, 1993

1

BUDGET WILL FURTHER INCREASE PEOPLE’S WELLBEING: FS

*****

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT THIS YEAR’S BUDGET WOULD FURTHER INCREASE THE WELLBEING OF THE PEOPLE OF HONG KONG.

MOVING THE SECOND READING OF THE APPROPRIATION BILL 1993, MR MACLEOD SAID THE GOVERNMENT WOULD IMPROVE THE LIVELIHOOD OF THE COMMUNITY, AS WELL AS THE RANGE AND QUALITY OF SOCIAL SERVICES AND OTHER PROGRAMMES IN LINE WITH THE MEASURES OUTLINED BY THE GOVERNOR IN HIS POLICY ADDRESS.

"BUT, IN ADDITION, WE WILL BE ABLE TO MAKE FURTHER IMPROVEMENTS IN KEY PROGRAMME AREAS.

"THERE WILL ALSO BE LOWER TAXES FOR THE GREAT MAJORITY OF TAXPAYING FAMILIES," HE SAID.

IN PREPARING THIS YEAR’S BUDGET AGAINST A BACKGROUND OF RAPID POLITICAL AS WELL AS ECONOMIC CHANGE, BOTH HERE AND ABROAD, MR MACLEOD SAID HE HAD BEEN VERY CONSCIOUS OF THE GOVERNMENT’S FUNDAMENTAL OBJECTIVES IN MANAGING ITS FINANCIAL AND ECONOMIC AFFAIRS:

* THE BUSINESS ENVIRONMENT SHOULD BE AS POSITIVE AS POSSIBLE, WITH MINIMUM GOVERNMENT INTERFERENCE AND MAXIMUM SUPPORT.

* THE GOVERNMENT’S POLICIES AND PROGRAMMES SHOULD BALANCE ECONOMIC REALITIES AND THE PUBLIC’S ASPIRATIONS.

* FUNDING FOR EXPANDED GOVERNMENT PROGRAMMES SHOULD NORMALLY COME FROM THE REVENUE GENERATED BY ECONOMIC GROWTH RATHER THAN HIGHER TAXES.

* ECONOMIC GROWTH SHOULD IMPROVE THE QUALITY OF LIFE FOR THE WHOLE COMMUNITY.

* THE FUTURE SPECIAL ADMINISTRATIVE REGION GOVERNMENT (SARG) SHOULD GET OFF TO THE BEST POSSIBLE START IN 1997, WITH A FLOURISHING ECONOMY, ADEQUATE FINANCE AND AN INFRASTRUCTURE FIT FOR THE NEXT CENTURY.

"THIS YEAR’S BUDGET IS A BUDGET WHICH BUILDS ON SUCCESS.

"I HAVE BEEN ABLE TO PURSUE THESE AIMS WITH CONSIDERABLE CONFIDENCE IN THIS MY SECOND BUDGET BECAUSE OF OUR ROBUST ECONOMIC PERFORMANCE," HE SAID.

HE EXPLAINED THAT THIS HAD BEEN BASED ON:

THE CONTINUED IMPRESSIVE GROWTH OF CHINA’S ECONOMY, AND

* THE ABILITY OF HONG KONG BUSINESSMEN TO LOOK BEYOND PRESENT POLITICAL CONTROVERSIES TO THE LONG-TERM PROSPECTS FOR SUSTAINED GROWTH THROUGHOUT THE HONG KONG ECONOMY.

/’’BUT THE ..........

WEDNESDAY, MARCH 3, 1993

2

"BUT THE GOVERNMENT CANNOT ACHIEVE THIS ON ITS OWN," HE SAID.

THE GOVERNMENT HAS TO WORK TOGETHER IN PARTNERSHIP WITH OTHERS:

* IN PARTNERSHIP WITH THE LEGISLATIVE COUNCIL, WHICH MEANS, FOR EXAMPLE, FRANK AND EARLY CONSULTATIONS WITH MEMBERS ON BUDGET PRIORITIES,

* IN PARTNERSHIP WITH THE BUSINESS COMMUNITY, TO MAINTAIN HONG KONG’S COMPETITIVENESS, AND TO MAXIMISE PRIVATE INVESTMENT IN OUR INFRASTRUCTURE, AND

* IN PARTNERSHIP WITH THE COMMUNITY WE ALL SERVE, SO AS TO ENSURE THAT ITS NEEDS ARE MET AND ITS CRITICISMS HEEDED.

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HK CONTINUES TO FLOURISH *****

HONG KONG HAS CONTINUED TO FLOURISH, DESPITE FOREBODINGS ABOUT HONG KONG’S ABILITY TO WEATHER NEW POLITICAL STORMS AND IN THE FACE OF RECESSIONARY CONDITIONS IN MANY OF ITS LEADING EXPORT MARKETS, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

"IN PRESENTING MY FIRST BUDGET LAST YEAR, I SAID THAT MY OVERRIDING DUTY AS FINANCIAL SECRETARY WAS TO SEE THAT HONG KONG’S RECORD OF ECONOMIC SUCCESS CONTINUED INTO THE FUTURE.

"FOR IT IS FROM THIS ECONOMIC SUCCESS THAT ALL ELSE FLOWS," MR MACLEOD SAID IN HIS BUDGET FOR 1993/94.

"I THINK WE CAN FAIRLY SAY THAT OVER THE LAST YEAR, HONG KONG HAS CONFOUNDED THE SCEPTICS YET AGAIN," HE SAID, NOTING THAT:

* GDP GREW 5% IN REAL TERMS, WELL UP FROM THE GROWTH RATE IN PRECEDING YEARS. GDP PER HEAD INCREASED TO OVER U.S.$16,000.

* TOTAL EXPORTS GREW 19%.

* IN EFFECT HONG KONG HAS FULL EMPLOYMENT. THE UNEMPLOYMENT RATE HAS REMAINED AMONG THE LOWEST IN THE WORLD.

* INFLATION FELL BACK, ALTHOUGH NOT NEARLY ENOUGH FOR COMFORT.

"IT IS A MARK OF OUR SUCCESS THAT NOWADAYS WE CAN COMPARE OURSELVES WITH THE MAJOR ECONOMIES OF THE WORLD, AND INCREASINGLY THE COMPARISONS IN MANY RESPECTS COME OUT IN OUR FAVOUR."

/AFTER ANOTHER .......

WEDNESDAY, MARCH 3, 1993

3

AFTER ANOTHER YEAR OF ECONOMIC SUCCESS:

HONG KONG HAS ALMOST CAUGHT UP WITH THE DEVELOPED ECONOMIES OF UK AND AUSTRALIA, AND HAS ALREADY OVERTAKEN SPAIN AND NEW ZEALAND, IN TERMS OF GDP PER HEAD, A CRUDE BUT USEFUL YARDSTICK OF ECONOMIC WELLBEING.

* HONG KONG IS THE 10TH LARGEST TRADING ECONOMY IN THE WORLD IN TERMS OF INTERNATIONAL TRADE.

HONG KONG IS THE 1 2TH LARGEST IN THE WORLD IN TERMS OF FOREIGN CURRENCY RESERVES.

IT IS NOT SIMPLY THAT HONG KONG HAS GOT ITS POLICIES RIGHT, THOUGH THIS HAS BEEN CRUCIAL, HE SAID.

”IT IS NOT ONLY THAT OUR COMMUNITY POSSESSES TALENT IN ABUNDANCE.

”IT IS ALSO THAT WE ARE FORTUNATE ENOUGH TO BE IN THE FASTEST GROWING REGION IN THE WORLD - AND THAT WE ARE FLEXIBLE AND EFFICIENT ENOUGH TO TAKE FULL ADVANTAGE OF THE OPPORTUNITIES THIS PRESENTS.”

THUS HONG KONG’S REGIONAL TRADE EXPANDED BY 23% IN 1992, AND TRADE WITH CHINA IN PARTICULAR BY 25%.

OVER THE LAST DECADE, THE INCREASE IN IMPORTANCE OF CHINA TRADE, IN BOTH ABSOLUTE AND RELATIVE TERMS, HAS BEEN STAGGERING, HE SAID.

"WE ARE BENEFITING

RECORDED BY GUANGDONG AND

HANDSOMELY FROM THE ASTONISHING GROWTH RATES OTHER PARTS OF CHINA.

"AND WE HAVE ALSO CONTRIBUTED HANDSOMELY TO CHINA’S SUCCESS, THROUGH OUR INVESTMENT IN THAT COUNTRY’S MANUFACTURING, COMMUNICATIONS AND SERVICES," THE FINANCIAL SECRETARY SAID.

THANKS LARGELY TO THE MARKET-ORIENTED ECONOMIC POLICIES ADOPTED BY THE CHINESE GOVERNMENT OVER THE LAST DECADE, HONG KONG HAS BECOME PART OF THE FASTEST-GROWING ECONOMIC REGION IN THE WORLD.

"WE ARE PART OF WHAT I BELIEVE HISTORY WILL RECOGNISE AS AN ECONOMIC MIRACLE TO RIVAL THE MUCH-VAUNTED POST-WAR RECORD OF JAPAN AND GERMANY," HE ADDED.

/4.........

WEDNESDAY, MARCH 3, 1993

4

ECONOMIC PROSPECTS FOR 1993 VERY ENCOURAGING: FS * * * * ♦

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY) THAT HONG KONG’S ECONOMIC PROSPECTS FOR 1993 WERE EXTREMELY GOOD.

PRESENTING HIS SECOND BUDGET TO THE LEGISLATIVE COUNCIL, MR MACLEOD SAID HE WAS CONFIDENT THAT THE TERRITORY SHOULD CONTINUE TO FLOURISH AS IT APPROACHED THE ’’ASIAN CENTURY”.

"BUT WE CAN NEVER TAKE SUCCESS FOR GRANTED. IT IS FAR FROM INEVITABLE," HE SAID.

HONG KONG’S CONTINUED PROSPERITY DEPENDS ON MAINTAINING THE RIGHT ENVIRONMENT FOR BUSINESS GROWTH.

”ON THIS SCORE, OUR PROSPECTS FOR 1993 ARE VERY ENCOURAGING, ALTHOUGH WE CANNOT IGNORE SOME POTENTIAL CLOUDS, PARTICULARLY ON THE TRADE HORIZON," HE SAID.

MR MACLEOD SAID HE WAS ENCOURAGED, FOR EXAMPLE, BY THE VIGOUR OF INVESTMENT IN MACHINERY AND EQUIPMENT, WHICH WAS LAYING A FIRM BASIS FOR FURTHER INCREASES IN PRODUCTIVITY.

HE EXPECTED ECONOMIC GROWTH IN 1993 TO BE SOMEWHAT GREATER THAN LAST YEAR:

* ALTHOUGH WESTERN EUROPE AND JAPAN ARE LIKELY TO REMAIN SLUGGISH, CHINA AND THE PACIFIC REGION ARE SET TO CONTINUE THEIR RECORD GROWTH. AND PROSPECTS FOR THE UNITED STATES, STILL HONG KONG’S MAJOR MARKET, SEEM BRIGHTER THAN LAST YEAR.

» PROVIDED THAT MFN STATUS FOR CHINA IS RENEWED, TOTAL EXPORTS WILL GROW BY 18.5% IN REAL TERMS, WITH RE-EXPORTS GROWING BY 25%. IMPORTS WILL ALSO GROW BY 19%.

♦ GROWTH IN FOREIGN TRADE WILL TRANSLATE INTO HIGHER PERSONAL INCOMES AND INCREASED CONSUMER DEMAND. CONSUMER SPENDING WILL GROW BY 7.5% IN REAL TERMS.

* GROWTH IN FOREIGN TRADE, BACKED BY RISING CONSUMER DEMAND, WILL ALSO CREATE A FAVOURABLE INVESTMENT CLIMATE. PRIVATE SECTOR SPENDING ON MACHINERY AND EQUIPMENT WILL GROW BY 15% IN REAL TERMS.

MR MACLEOD SAID THIS "BENIGN CYCLE" OF FOREIGN TRADE, INVESTMENT AND GDP GROWTH, WHICH WAS TRANSFORMING LIVING STANDARDS THROUGHOUT MUCH OF ASIA, MEANT THAT HONG KONG WOULD CONTINUE TO CLIMB HIGHER UP THE WORLD ECONOMIC RANKINGS.

"GDP WILL GROW BY 5.5% IN REAL TERMS, AND GDP PER HEAD WILL AMOUNT TO $146,700 (U.S.$ 18,800).

"WE HAVE EVERY CHANCE OF OVERTAKING THE GDP PER HEAD OF THE UK AND AUSTRALIA AND OF APPROACHING ITALY AND THE NETHERLANDS," HE SAID.

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/5 .........

WEDNESDAY, MARCH 3, 1993

5

INFLATION - A COST OF GROWTH

*****

HONG KONG’S PRIORITIES MUST CONTINUE TO BE ECONOMIC EXPANSION, REAL GROWTH IN BOTH PROFITS AND PERSONAL INCOMES, AND A HIGH LEVEL OF EMPLOYMENT, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

PRESENTING HIS BUDGET FOR 1993/94, MR MACLEOD SAID PURSUIT OF THESE GOALS MADE IT DIFFICULT TO ESCAPE FROM PRESSURE ON PRICES.

"BUT I BELIEVE THAT OUR COMMUNITY WOULD PREFER TO FACE THE PROBLEM OF CONTAINING INFLATION RATHER THAN THE THREAT OF BANKRUPTCIES, UNEMPLOYMENT AND STAGNANT INCOMES.

"INDEED, HONG KONG’S RECORD IN SUCCESSFULLY AVOIDING THE MISERY OF UNEMPLOYMENT IS OUTSTANDING," HE SAID.

HE SAID IN COMMON WITH MOST OF ITS ASIAN NEIGHBOURS, HONG KONG PUT GROWTH FIRST.

THE FINANCIAL SECRETARY SHARED THE SAME BASIC OBJECTIVES AS ECONOMIC POLICY-MAKERS ALL OVER THE WORLD: LOW INFLATION, HIGH GROWTH AND FULL EMPLOYMENT.

BUT HE ADDED THAT POLICY-MAKERS AROUND THE WORLD ALSO KNOW TO THEIR COST THAT THERE WAS NO CERTAIN RECIPE FOR ACHIEVING THIS.

"IN MANY WESTERN ECONOMIES, PRICE STABILITY HAS BEEN ACHIEVED, BUT ONLY AT THE COST OF LOW ECONOMIC GROWTH AND HIGH UNEMPLOYMENT," HE SAID.

DESCRIBING INFLATION AS ONE OF THE TWO CHALLENGES TO ECONOMIC PROSPECTS, MR MACLEOD SAID ALTHOUGH, AT 9.4% LAST YEAR, INFLATION HAD FALLEN SUBSTANTIALLY FROM ITS PEAK OF 13.9%, IT WOULD REMAIN UNCOMFORTABLY HIGH, WITH THE CPI(A) LIKELY TO STAY CLOSE TO 9.5% THIS YEAR.

"THE LEVEL IN INDIVIDUAL MONTHS MAY PROVE SOME WHAT HIGHER BECAUSE OF SEASONAL FACTORS. BUT THE OVERALL TREND SHOULD BE FOR SINGLE-DIGIT INFLATION.

"I ACCEPT THAT THIS, THOUGH BETTER THAN TN PREVIOUS YEARS, IS STILL NOT SATISFACTORY," HE SAID.

NONETHELESS, INFLATION IS AN ISSUE ON WHICH NO ONE CAN AFFORD

TO BE COMPLACENT, IN THE GOVERNMENT, IN BUSINESS OR IN THE COMMUNITY.

"THE SUDDEN SPURT IN CONSUMER PRICES IN JANUARY WAS A REMINDER

THAT COMPLACENCY HAS NO PLACE IN OUR THINKING.

"1 SHOULD ADD THAT I AM CONFIDENT THAT JANUARY WAS AN EXCEPTION WHICH WILL BE OFFSET OVER THE YEAR AS A WHOLE."

AT THE SAME TIME, IF THERE WERE ANY QUICK SOLUTION, OTHER THAN ECONOMIC STAGNATION AND ALL THE SOCIAL MISFRY THAT IT BRINGS, HONG KONG WOULD HAVE FOUND IT, HE SAID.

/"THE TRUTH ........

WEDNESDAY, MARCH 3, 1993

6

"THE TRUTH IS THAT VERY FEW PLACES IN THE WORLD HAVE FOUND A LOW-COST, SURE-FIRE REMEDY FOR INFLATION.

"BUT GIVEN THE CONSTRAINTS UNDER WHICH WE OPERATE, HONG KONG HAS PROBABLY COME AS CLOSE TO FINDING AS MUCH RELIEF FROM INFLATION AS WE CAN PRESENTLY REALISTICALLY EXPECT," MR MACLEOD SAID.

LABOUR REMAINS HONG KONG’S BIGGEST CONSTRAINT.

"WITH A LIMITED WORKFORCE, OUR FIRST PRIORITY MUST BE MAXIMUM EFFICIENCY.

"LAST YEAR, LABOUR PRODUCTIVITY INCREASED BY 5.4% IN REAL TERMS.

"IN PARTNERSHIP WITH THE PRIVATE SECTOR, WE WILL CONTINUE TO IMPROVE THE EFFICIENCY OF OUR LABOUR FORCE THROUGH EDUCATION AND TRAINING PROGRAMMES."

THE INJECTION LAST NOVEMBER OF $300 MILLION INTO THE EMPLOYEES RETRAINING FUND WILL MAKE IT POSSIBLE TO RETRAIN SOME 10,000 WORKERS IN 1993.

THIS IS, OF COURSE, ADDITIONAL TO THE $1 BILLION WHICH WILL BE SPENT IN 1993/94 ON VOCATIONAL TRAINING BY THE VOCATIONAL TRAINING COUNCIL.

"HOWEVER, THERE IS NO DOUBT THAT WE WILL STILL FACE A SERIOUS SHORTAGE OF LABOUR IN CERTAIN SECTORS, AND THAT WE HAVE NOT YET FOUND A SATISFACTORY SOLUTION TO THIS PROBLEM," HE SAID.

LAND IS ALSO A SERIOUS CONSTRAINT, ONE WHICH MANY FAMILIES FEEL THROUGH THE HIGH COST OF ACCOMMODATION.

"WE HAVE GONE SOME WAY TOWARDS MITIGATING THE IMPACT OF SPECULATIVE PRESSURES ON THE PRICE OF HOUSING.

"IN PARTICULAR, THE STAMP DUTY MEASURES INTRODUCED IN LATE 1991, TOGETHER WITH THE LIMIT ON BANK MORTGAGE LENDING, HAVE HELPED TO STABILISE THE PRICE OF HOMES.

INDEED, RESIDENTIAL FLAT PRICES HAVE NOW COME SOMEWHAT OFF THEIR PEAK.

HOWEVER, THEY ARE STILL VERY HIGH; FOR EXAMPLE, THEY ARE NOT FAR OFF DOUBLE THEIR PRICE IN JANUARY 1991.

"I BELIEVE WE MUST BE VERY CAUTIOUS ABOUT PROPOSALS TO EASE LENDING LIMITS AND THE LIKE IF WE ARE TO AVOID ANOTHER PRICE SPIRAL.!'

INDIVIDUAL BUYERS ALSO NEED TO BEAR IN MIND THEIR VULNERABILITY TO POSSIBLE HIGHER INTEREST RATES, ESPECIALLY IF THEY BORROW A VERY HIGH PERCENTAGE OF THE PRICE OF A PROPERTY - CLEARLY THE MORE THEY BORROW TOWARDS A FLAT, THE MORE EXPOSED THEY ARE.

/"BUT WHEN ........

WEDNESDAY, MARCH 3, 1993

"BUT WHEN THE TIME DOES COME TO EASE OFF, I HAVE SOME SYMPATHY FOR SUGGESTIONS INSIDE AND OUTSIDE THIS CHAMBER THAT, IF POSSIBLE, PRIORITY SHOULD BE GIVEN TO FIRST-TIME HOME BUYERS," HE SAID.

MR MACLEOD SAID INDUSTRY HAD SOUGHT SOLUTIONS OF ITS OWN TO HIGHER PRODUCTION COSTS, PARTICULARLY THROUGH RELOCATION OF ALL OR PART OF PRODUCTION TO THE RELATIVELY LOW-COST ENVIRONMENT OF SOUTHERN CHINA.

"THIS HAS HELPED US MAINTAIN COMPETITIVE EXPORT PRICES DESPITE

DOMESTIC INFLATION. EXPORT PRICES ROSE LAST YEAR BY ONLY 1%."

HE SAID THE OTHER RESPONSE TO INFLATION WAS TO PROTECT THE VULNERABLE MEMBERS OF THE COMMUNITY AGAINST THE IMPACT OF RISING PRICES.

"WE SHALL CONTINUE TO MAINTAIN THE REAL VALUE OF SOCIAL SECURITY PAYMENTS THROUGH INCREASING THE LEVEL OF BENEFITS IN LINE WITH INFLATION."

THIS IS IN ADDITION TO THE REAL INCREASE IN BENEFITS ANNOUNCED IN THE GOVERNOR’S POLICY ADDRESS, WHICH WILL TAKE EFFECT THIS SUMMER, HE SAID.

--------0-----------

TRADE RESTRICTIONS WILL REMAIN AN ANXIETY: FS *****

TRADE RESTRICTIONS, PARTICULARLY CHINA’S MFN STATUS IN THE U.S. MARKET, WILL REMAIN AN ANXIETY, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

PRESENTING HIS BUDGET FOR 1993/94 IN THE LEGISLATIVE COUNCIL, MR MACLEOD SAID CHINA AND THE UNITED STATES TOGETHER ACCOUNT FOR NEARLY HALF OF HONG KONG’S TOTAL FOREIGN TRADE.

"WE CLEARLY HAVE A MAJOR INTEREST IN TRADE ISSUES BETWEEN THESE TWO GIANTS BEING SENSIBLY RESOLVED."

MFN STATUS IS ACTUALLY THE NORMAL TREATMENT FOR THE VAST MAJORITY OF THE UNITED STATES’ TRADING PARTNERS.

"WITHDRAWAL OF MFN STATUS IS A VERY SERIOUS STEP. IT INVOLVES PENAL TARIFF RATES ON MANY GOODS," HE SAID.

FOR EXAMPLE, IN CERTAIN TOYS AND APPAREL PRODUCTS, THE NON-MFN TARIFF RATES ARE MORE THAN 10 TIMES THE MFN RATES.

"I BELIEVE IT IS CLEARLY IN THE INTEREST OF ALL TO FIND A MORE CONSTRUCTIVE BASIS FOR SUCH A KEY RELATIONSHIP."

/OVER THE ........

WEDNESDAY, MARCH 3, 1993

8

OVER THE NEXT FEW MONTHS, THE NEW UNITED STATES ADMINISTRATION WILL HAVE TO DECIDE WHETHER TO RENEW CHINA’S MFN STATUS.

"WE IN HONG KONG SHALL HAVE TO USE EVERY OPPORTUNITY TO EXPLAIN OUR CONCERNS IN WASHINGTON.

"THE CASE WE SHALL BE MAKING TO THE AMERICAN ADMINISTRATION, AS STRENUOUSLY AS POSSIBLE, IN DEFENCE OF HONG KONG’S ECONOMIC WELLBEING AND THE PRINCIPLES OF FREE TRADE CAN BE SIMPLY PUT."

THE CASE IS :

« IT IS ESTIMATED THAT LOSS OF MFN STATUS BY CHINA WOULD COST

HONG KONG UP TO 70,000 JOBS AND UP TO THREE PERCENTAGE

POINTS OF OUR ANNUAL GDP GROWTH.

* IT IS UNREASONABLE AND UNDESIRABLE TO INFLICT ECONOMIC

DAMAGE ON HONG KONG AS A RESULT OF DISPUTES BETWEEN

WASHINGTON AND PEKING.

» IT IS A MISTAKE TO UNDERESTIMATE THE PROGRESS WHICH CHINA HAS ALREADY MADE IN AREAS OF CONCERN IN THE COURSE OF ECONOMIC LIBERALISATION.

* IT IS IMPOSSIBLE TO SEE HOW THOSE CLAIMING TO PROTECT OR HELP HONG KONG CAN DO SO BY DAMAGING OUR TRADE.

» HONG KONG WOULD NOT BE THE ONLY CASUALTY. ONE ESTIMATE IS THAT WITHDRAWAL OF MFN WOULD COST AMERICAN CONSUMERS U.S.$14 BILLION BECAUSE OF HIGHER IMPORT PRICES, WHILE RETALIATION BY CHINA WOULD PUT AT RISK OVER 150,000 AMERICAN JOBS AND U.S.$6 BILLION WORTH OF INVESTMENT IN UNITED STATES EXPORTS TO CHINA.

MR MACLEOD SAID THE GOVERNOR WAS LOOKING FORWARD TO TRAVELLING TO WASHINGTON AT AN APPROPRIATE TIME LATER IN THE YEAR TO PUT FORWARD SOME OF THESE ARGUMENTS IN PERSON.

ALTHOUGH MFN IS THE MOST IMMEDIATE THREAT TO HONG KONG’S EXPORT GROWTH, THE FINANCIAL SECRETARY SAID THE FAILURE TO BRING THE URUGUAY ROUND TO A SUCCESSFUL CONCLUSION WAS ALSO A CONSIDERABLE DISAPPOINTMENT.

"THERE IS MUCH AT STAKE IN THESE TALKS, FOR HONG KONG AND FOR THE WORLD."

FOR HONG KONG, THE URUGUAY ROUND WOULD HELP TO BRING A SIGNIFICANT REDUCTION IN THE LEVEL OF DISCRIMINATION AGAINST HONG KONG’S EXPORTS OF SERVICES AS WELL AS GOODS.

FOR THE INTERNATIONAL ECONOMY, THE ROUND OFFERS AN OPPORTUNITY TO EXTEND TO NEW AREAS THE TRADE LIBERALISATION WHICH HAS PRODUCED IN ASIA THE DRAMATIC PROGRESS FROM POVERTY OVER THE PAST 20 YEARS, HE SAID.

--------0

/9 .........

WEDNESDAY, MARCH 3, 1993

9

HK IS A PREDOMINANTLY SERVICE ECONOMY « * * » *

HONG KONG IS NOW A PREDOMINANTLY SERVICE ECONOMY, WITH CHINA AND THE REST OF THE REGION AS THE MAIN MARKET AND SOURCE OF GROWTH, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

IN 1991, 73% OF HONG KONG’S GDP CAME FROM THE SERVICE SECTOR, WHICH NOW EMPLOYS 66% OF THE WORK FORCE, MR MACLEOD SAID IN HIS BUDGET FOR 1993/94.

"THIS STRATEGIC SHIFT IN THE BALANCE OF OUR ECONOMIC ACTIVITIES HAS CREATED NEW CHALLENGES, ESPECIALLY IN TERMS OF THE GOVERNMENT’S RESPONSIBILITIES."

A GOOD EXAMPLE OF HONG KONG’S POSITIVE RESPONSE TO THESE NEW CHALLENGES WAS THE DECISION LAST YEAR TO GO INTO PARTNERSHIP WITH THE PRIVATE SECTOR IN THE NEW FIELD OF ELECTRONIC DATA INTERCHANGE, OR EDI

"AS A RESULT, WE WILL BE SIGNIFICANTLY IMPROVING THE EFFICIENCY OF OUR TRADE AND BUSINESS SECTORS," HE SAID.

THE FINANCIAL SECRETARY SAID ONE OF HONG KONG’S GREATEST ASSETS WAS AN ABILITY TO ADAPT TO NEW ECONOMIC REALITIES, THROUGH THE WORKING OF THE MARKET MECHANISM, NOT THROUGH GOVERNMENT EDICT.

OVER THE PAST DECADE, HONG KONG’S ECONOMY HAS BEEN TRANSFORMED AS IT HAD EMERGED AS ONE OF THE BUSINESS CAPITALS OF ASIA.

IN 1981, 23% OF GDP CAME FROM THE MANUFACTURING SECTOR. IN 1991, MANUFACTURING - WHILE STILL IMPORTANT - ACCOUNTED FOR ONLY 16%.

MR MACLEOD SAID IF THE SERVICES SECTOR WAS AT PRESENT THE PREDOMINANT SECTOR OF HONG KONG’S ECONOMY, THERE WAS NO MORE IMPORTANT COMPONENT OF IT THAN THE FINANCIAL SERVICES.

HONG KONG OWES A GREAT DEAL TO ITS FINANCIAL SERVICES SECTOR.

"IT HAS BEEN THE FLAGSHIP OF OUR ECONOMIC TRANSFORMATION IN RECENT YEARS. I SHOULD LIKE TO PAY A SPECIAL TRIBUTE THIS AFTERNOON TO DAVID NENDICK WHO, AS SECRETARY FOR MONETARY AFFAIRS UNTIL A FEW WEEKS AGO, DID SO MUCH TO ENCOURAGE THIS PROCESS," HE SAID.

THE SUCCESS OF THE FINANCIAL SERVICES INDUSTRY IS BASED ON A PARTNERSHIP WITH THE GOVERNMENT.

THE GOVERNMENT’S MAIN ROLE HAS BEEN TO SECURE:

* A STABLE EXCHANGE RATE AND SOLID PUBLIC CONFIDENCE IN THE CURRENCY, AND

* THE STABILITY AND INTEGRITY OF THE MONETARY AND FINANCIAL MARKETS THROUGH A STRENGTHENED REGULATORY FRAMEWORK.

/"FOR THE ........

WEDNESDAY, MARCH 3, 1993

- 10 -

’’FOR THE AVOIDANCE OF ANY DOUBT, LET ME REPEAT HERE THE ASSURANCE THAT I GAVE LAST YEAR, THAT I REMAIN COMMITTED TO THE EXISTING LINKED EXCHANGE RATE,” HE SAID.

IN A FIELD WHICH IS EVOLVING AS RAPIDLY AND DRAMATICALLY AS FINANCIAL SERVICES, THE GOVERNMENT HAS A SPECIAL RESPONSIBILITY TO KEEP ABREAST OF CHANGE.

"I CONSIDER IT PARTICULARLY IMPORTANT THAT THE GOVERNMENT SHOULD RESPOND QUICKLY AND POSITIVELY TO ENABLE OUR FINANCIAL SERVICES TO TAKE FULL ADVANTAGE OF CHANGING CIRCUMSTANCES.

”WE ARE DOING JUST THAT.”

IN THE PAST YEAR, MAJOR DEVELOPMENTS WERE SEEN:

* IMPORTANT STEPS TAKEN TO ENABLE THE ESTABLISHMENT OF THE HONG KONG MONETARY AUTHORITY, THANKS TO THE UNANIMOUS SUPPORT OF THE LEGISLATIVE COUNCIL,

FURTHER MONETARY REFORM THROUGH THE ESTABLISHMENT OF THE LIQUIDITY ADJUSTMENT FACILITY, HONG KONG’S VERSION OF A DISCOUNT WINDOW,

THE LAUNCHING OF A NEW SECURITIES CENTRAL CLEARING AND SETTLEMENT SYSTEM, THANKS TO THE EFFORTS OF THE SECURITIES AND FUTURES COMMISSION AND THE HONG KONG STOCK EXCHANGE, AND

THE DECISION BY THE CHINESE GOVERNMENT TO CONSIDER THE LISTING OF NINE STATE-OWNED COMPANIES ON THE STOCK MARKET, ANNOUNCED IN OCTOBER 1992.

THESE WERE IMPORTANT AND USEFUL STEPS, HE SAID, ADDING THAT THERE WAS MORE THE GOVERNMENT COULD DO.

”WE ARE CONSIDERING STEPS TO IMPROVE THE LIQUIDITY OF SECURITIES ISSUED BY STATUTORY CORPORATIONS (SUCH AS THE AIRPORT AUTHORITY AND THE MASS TRANSIT RAILWAY CORPORATION) THROUGH EXTENDING TO THEM THE MARKET MAKING ARRANGEMENTS FOR EXCHANGE FUND BILLS AND BONDS.

”WE ARE DESIGNING A CENTRAL CUSTODY SYSTEM FOR HONG KONG DOLLAR DEBT INSTRUMENTS IN PAPERLESS FORM.

"WE SHALL CONVERT THE LAND AND COMPANIES REGISTRIES INTO NEW STYLE TRADING FUND DEPARTMENTS TO ENABLE THEM TO SERVE THEIR CLIENTS BETTER,” HE SAID.

HE SAID THERE WAS AN IMPORTANT TECHNICAL POINT WHICH HE SHOULD LIKE TO CLARIFY.

IN 1991/92, THE GOVERNMENT STARTED TO ISSUE TWO-TO-THREE YEAR GOVERNMENT BONDS, WHICH HAVE ENHANCED THE DEVELOPMENT OF THE HONG KONG DOLLAR DEBT MARKET.

THIS PROGRAMME IS GOING WELL, HE SAID.

/’’BECAUSE THESE .........

WEDNESDAY, MARCH 3, 1993

11

"BECAUSE THESE BONDS ARE NOW PRIMARILY AIMED AT MARKET DEVELOPMENT - CLEARLY WITH OUR PRESENT STRONG FISCAL POSITION, WE CURRENTLY HAVE NO NEED TO BORROW FOR CAPITAL EXPENDITURE PURPOSES.

"I BELIEVE THAT IT IS DESIRABLE FOR THE NEW HONG KONG MONETARY AUTHORITY TO TAKE OVER RESPONSIBILITY FOR THE FINANCIAL ACCOUNTING, AND HAVE THE PROCEEDS OF THE BOND ISSUES TAKEN INTO THE EXCHANGE FUND RATHER THAN THE CAPITAL WORKS RESERVE FUND."

HE SAID CONSIDERATION WAS BEING GIVEN TO HOW THIS COULD BEST BE ACHIEVED WITHOUT AFFECTING THE BOND PROGRAMME.

"BUT FOR THE PURPOSES OF THE MEDIUM RANGE FORECAST (AND THE 1993/94 ESTIMATES), I HAVE ASSUMED THAT SUCH REVISED ARRANGEMENTS WILL APPLY IN 1993/94."

ON PROTECTING THE PUBLIC, A KEY ISSUE FOR BOTH THE GOVERNMENT AND THE FINANCIAL SERVICES INDUSTRY IS HOW TO STRIKE THE RIGHT BALANCE BETWEEN MARKET FORCES AND THE PROTECTION OF THE CONSUMER.

"WE HAVE TRADITIONALLY RELIED IN MANY AREAS ON SELF-REGULATION AS THE BEST WAY TO PROTECT THE PUBLIC WITHOUT EXCESSIVE GOVERNMENT INTERFERENCE. BUT LEGISLATION HAS ITS PART TO PLAY IN ACHIEVING THE RIGHT BALANCE."

OVER THE NEXT YEAR, MR MACLEOD SAID THE GOVERNMENT SHOULD BE TAKING TWO IMPORTANT STEPS TO ENHANCE CONSUMER PROTECTION:

FIRST, TO STRENGTHEN THE INSURANCE AUTHORITY, THE GOVERNMENT WILL PRESENT LEGISLATION WHICH, AMONG OTHER THINGS, WILL PROVIDE EARLIER WARNING OF POTENTIAL DIFFICULTIES AND IMPOSE TIGHTER CAPITAL REQUIREMENTS ON THE INDUSTRY.

SECONDLY, TO REGULATE VOLUNTARY RETIREMENT SCHEMES, THE GOVERNMENT WILL BRING INTO EFFECT THE OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE BY THE MIDDLE OF THIS YEAR.

THIS WILL PROVIDE GREATER PROTECTION FOR EMPLOYEES WHO ARE MEMBERS OF SUCH SCHEMES, HE SAID.

"THESE MEASURES HAVE BEEN CAREFULLY JUDGED TO GIVE PROTECTION TO THE PUBLIC WITHOUT IMPAIRING BUSINESS GROWTH."

IN FACT, THE MEASURES WILL ENHANCE THE QUALITY OF THE PRODUCTS AND EXPAND THEIR MARKET, HE ADDED.

MR MACLEOD SAID THE DEVELOPMENT OF A MORE EFFECTIVE REGULATORY FRAMEWORK FOR THOSE WHO BOUGHT INSURANCE POLICIES AND CONTRIBUTE TO RETIREMENT SCHEMES WOULD ENCOURAGE THE COMMUNITY TO HAVE GREATER CONFIDENCE IN THE INTEGRITY OF THESE PRODUCTS.

ON MARKET FORCES, HE EMPHASISED THAT THE GOVERNMENT, LIKE THE COMMUNITY AT LARGE, CONTINUED TO BELIEVE THAT COMPETITION AND THE MARKET WERE THE BEST ALLIES OF THE CONSUMER, AND THE BEST WAYS TO MAXIMISE EFFICIENCY AND AVOID UNFAIR PRICING.

/"I BELIEVE .......

WEDNESDAY, MARCH 3, 1993

12

"I BELIEVE THAT WE SHOULD INTERVENE TO SUPERVISE MARKETS ONLY WHEN ESSENTIAL TO PROTECT THE CONSUMER."

WHENEVER POSSIBLE, SELF-REGULATION IS PREFERABLE TO GOVERNMENT INTERVENTION, HE SAID.

"EVEN WHERE GOVERNMENT CONTROLS PROVE TO BE UNAVOIDABLE, WE ARE DETERMINED TO EXPLOIT ALL POSSIBLE OPPORTUNITIES TO PROMOTE COMPETITION.

"WE HAVE DEMONSTRATED THIS IN THE LAST YEAR BY ENCOURAGING COMPETITION IN TELECOMMUNICATIONS, PUBLIC TRANSPORT AND TELEVISION."

HE SAID IT WAS NO LESS TRUE OF THE FINANCIAL SERVICES, WHERE INTENSE RIVALRY EXISTS BETWEEN MAJOR INSTITUTIONS, BOTH LOCAL AND FROM OVERSEAS, COMBINED WITH A SYSTEM OF SUPERVISION WHICH MATCHED THE STANDARDS ACHIEVED IN OTHER MAJOR INTERNATIONAL FINANCIAL CENTRES.

--------0-----------

FS OUTLINES BUDGET STRATEGY

*****

THE FINANCIAL SECRETARY, THE HON HAMISH MACLE'OD, SAID TODAY (WEDNESDAY) THAT HE REMAINED COMMITTED TO THE PRINCIPLES OF SOUND FINANCIAL MANAGEMENT WHICH HAD GUIDED THE GOVERNMENT’S BUDGETARY POLICY OVER THE YEARS.

"THESE PRINCIPLES HAVE SERVED US WELL," MR MACLEOD SAID, WHEN PRESENTING HIS SECOND BUDGET TO THE LEGISLATIVE COUNCIL.

TWO IN PARTICULAR DESERVE TO BE RESTATED, HE SAID.

* PUBLIC SPENDING MUST NOT GROW FASTER THAN THE ECONOMY, AND

* THE RESERVES MUST PROVIDE AN ADEQUATE CUSHION TO MEET KNOWN COMMITMENTS AND FUTURE UNCERTAINTIES.

THESE PRINCIPLES CANNOT BE APPLIED MECHANICALLY ON A YEAR-BY-YEAR BASIS.

TO DO SO WOULD BE TO APPLY UNNECESSARILY RIGID CONSTRAINTS, PARTICULARLY TO CAPITAL EXPENDITURE.

"MAJOR PROJECTS TEND TO BE UNEVEN IN THEIR EXPENDITURE FLOWS. THIS MEANS THAT, IN SOME YEARS, THE BUDGET WILL SHOW A SURPLUS; IN OTHER YEARS, WE WILL HAVE A DEFICIT," HE SAID.

THE KEY IS TO MAINTAIN A REASONABLE LEVEL OF RESERVES TO AVOID THE DISRUPTION OF "STOP-GO" POLICIES.

"THIS YEAR, OUR FINANCES ARE IN A VERY HEALTHY CONDITION."

/HE SAID .......

WEDNESDAY, MARCH 3, 1993

13

HE SAID THE MEDIUM RANGE FORECAST TO 1996/97 DEMONSTRATED THAT THE PLANS FOR THE FUTURE WERE WELL WITHIN THE GOVERNMENT’S MEANS.

HONG KONG CAN COMFORTABLY AFFORD:

* THE FAR-REACHING TARGETS IN KEY PROGRAMME AREAS ANNOUNCED BY THE GOVERNOR IN HIS POLICY ADDRESS, AND

* VERY SUBSTANTIAL PROGRAMMES OF CAPITAL SPENDING ON THE PHYSICAL INFRASTRUCTURE, INCLUDING THE AIRPORT CORE PROGRAMME.

HE SAID THE FORECAST ALSO DEMONSTRATED THAT THE GOVERNMENT COULD AFFORD TO BE EVEN MORE AMBITIOUS AND UNDERTAKE FURTHER IMPROVEMENTS TO SERVICES IN KEY PROGRAMME AREAS, NEW INITIATIVES, AND MAJOR TAX CONCESSIONS.

HE SAID THIS BUDGET CONTAINED FAR-REACHING PROPOSALS FOR NEW EXPENDITURE, MADE POSSIBLE BY THE EXCELLENT STATE OF THE PUBLIC FINANCES.

"THEY REPRESENT WHAT I REGARD AS IMAGINATIVE YET PRUDENT USE OF RECORD BUDGET SURPLUSES TO PRODUCE LASTING ECONOMIC AND SOCIAL BENEFITS, WITHOUT MORTGAGING OUR FUTURE."

IN PARTICULAR, HE SAID THE GOVERNMENT HAD BEEN ABLE TO BRING FORWARD SOME IMPORTANT PROJECTS THAT, OTHERWISE, COULD NOT HAVE BEEN UNDERTAKEN FOR MANY YEARS.

--------0

BUDGET SURPLUS OF $20.5 BILLION FORECAST

*****

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, HAS REVISED THE BUDGET SURPLUS FOR 1992/93 TO $20.5 BILLION FROM THE ORIGINAL FORECAST OF $7.5 BILLION AS A RESULT OF HIGHER REVENUE AND LOWER SPENDING.

THE RESERVE BALANCE AT THE END OF THE YEAR IS NOW FORECAST TO BE $119.6 BILLION.

OF THE ADDITIONAL SURPLUS, $7 BILLION IS THE RESULT OF HIGHER-THAN-EXPECTED REVENUE.

THE FINANCIAL SECRETARY EXPECTED TOTAL REVENUE TO COME TO $133.3 BILLION, SOME 5.5% ABOVE THE ORIGINAL FORECAST OF $126.3 BILLION.

THIS SURGE IN REVENUE ACCOUNTS FOR ABOUT HALF THE ADDITIONAL SURPLUS.

/"THIS EXTRA ........

WEDNESDAY, MARCH 3, 1993

- 14

"THIS EXTRA REVENUE REFLECTS THE SUCCESS OF THE ECONOMY, AND IS OF COURSE GOOD NEWS SINCE IT HAS BEEN LARGELY GENERATED BY INCREASED LEVELS OF BUSINESS ACTIVITY. MOST OF IT COMES FROM STAMP DUTY, PROFITS TAX AND VEHICLE FIRST REGISTRATION TAX," SAID MR MACLEOD.

"THE OTHER HALF OF THE ADDITIONAL SURPLUS IS THE RESULT OF CAPITAL UNDERSPENDING. MEMBERS WILL NOT FIND THIS ACCEPTABLE. NEITHER DO I."

HE FORECASTED LAST YEAR THAT TOTAL EXPENDITURE WOULD COME TO $115 BILLION AND NOW EXPECTED TOTAL EXPENDITURE TO COME TO $109 BILLION, SOME 5% LOWER THAN THE ORIGINAL TARGET.

HE NOTED THAT THE GOVERNMENT HAD MADE SOME WELCOME SAVINGS OF ABOUT $1 BILLION ON PUBLIC WORKS CONTRACTS WHERE TENDER PRICES HAD BEEN LOWER THAN EXPECTED, BUT POINTED OUT THAT IT HAD TO BE FACED THAT THE MAIN UNDERSPENDING WAS THE RESULT OF SLOWER PROGRESS WITH CAPITAL WORKS PROGRAMMES THAN PLANNED.

"LET ME BE PLAIN ABOUT WHAT THIS UNDERSPENDING MEANS FOR THE COMMUNITY: SOME DESIRABLE PROJECTS WILL NOT BE READY ON TIME. IT IS TRUE THAT WE HAVE SET OURSELVES AMBITIOUS TARGETS, BUT SUCH DELAYS ARE NOT ACCEPTABLE, AND WE HAVE TO ACT URGENTLY TO REMOVE THE BOTTLENECKS," THE FINANCIAL SECRETARY SAID.

HE SAID THAT THE TREND OF UNDERSPENDING WAS ALREADY APPARENT AT THE TIME OF HIS LAST BUDGET, AND SOME MEASURES HAD ALREADY BEEN PUT INTO EFFECT - FOR EXAMPLE, CALLING FOR TENDERS WHILE AT THE SAME TIME PUTTING ITEMS TO FINANCE COMMITTEE FOR FUNDING, GETTING RID OF THE BOTTLENECK OF CLEARING YEAR-END PAYMENTS, AND THE INTRODUCTION OF TIGHTER MONITORING PROCEDURES BY WORKS BRANCH.

"THIS LAST FINANCIAL YEAR HAS BROUGHT HOME THE NEED FOR MORE FUNDAMENTAL SOLUTIONS TO THIS CONSTRAINT ON OUR CAPACITY. IMPROVED CO-ORDINATION AND MANAGEMENT WITHIN THE WORKS DEPARTMENTS WILL HELP. NO LESS IMPORTANT WILL BE GREATER USE OF PRIVATE SECTOR EXPERTISE AND RESOURCES."

MR MACLEOD SAID IT HAD BECOME CLEAR THAT NEW MEASURES WERE NEEDED TO ENSURE THAT THERE WAS EFFECTIVE LIAISON BETWEEN THOSE WHO DESIGNED PROJECTS, THOSE WHO UNDERTOOK LAND ACQUISITION FOR THEM, THOSE WHO MONITORED THEIR ENVIRONMENTAL IMPLICATIONS AND THOSE WHO IMPLEMENTED THE WORKS, AND ALSO WITH THE CLIENT BRANCHES OR DEPARTMENTS.

THIS REQUIRES THAT OVERALL MANAGEMENT OF PUBLIC WORKS BECOMES MORE UNIFIED.

"TO REMOVE ANY DOUBT ABOUT WHERE OVERALL MANAGEMENT RESPONSIBILITY LIES," HE SAID, "I HAVE TAKEN STEPS TO PLACE WITH THE SECRETARY FOR WORKS OVERALL RESPONSIBILITY FOR THE IMPLEMENTATION OF THE PUBLIC WORKS PROGRAMME."

GIVEN THE VARIATION IN SIZE OF PROJECTS AND THE INEVITABLE LUMPY NATURE OF WORKS PROGRAMMING, HE SAID IT WAS NOT COST-EFFECTIVE TO ATTEMPT TO HAVE ALL PROJECTS DESIGNED AND SUPERVISED BY GOVERNMENT ENGINEERS AND ARCHITECTS.

/HE SAID .......

WEDNESDAY, MARCH 3, 1993

15

HE SAID THE GOVERNMENT WOULD BE LOOKING AT HOW TO ENTRUST MORE OF ITS PROJECTS TO OUTSIDE AGENCIES OR THE PRIVATE SECTOR FOR DESIGN AND MANAGEMENT, AS WELL AS LETTING MORE "DESIGN-AND-BUILD" OR TURNKEY CONTRACTS.

HE HAS ASKED THE SECRETARY FOR WORKS TO TACKLE THESE PROBLEMS AS A MATTER OF URGENCY.

OTHER REMEDIAL MEASURES IN THE PIPELINE ARE:

» A NEW REALISM WILL CHARACTERISE THE ESTIMATES OF PROJECT COSTS AND PROGRESS IN FUTURE.

♦ TO HELP FULFIL HIS NEW RESPONSIBILITY FOR ENSURING PUBLIC WORKS ARE DELIVERED ON TIME AND WITHIN BUDGET, THE SECRETARY FOR WORKS WILL ESTABLISH A MORE SOPHISTICATED, COMPUTER-BASED INFORMATION AND MANAGEMENT SYSTEM. THIS WILL LINK ALL THE WORKS DEPARTMENTS AND THE RELEVANT BRANCHES. IT SHOULD ENABLE PROBLEMS TO BE IDENTIFIED AND SOLVED AT AN EARLIER STAGE. IT WILL ALLOW THE GOVERNMENT TO EXTEND SYSTEMS WHICH HAVE BEEN USED SUCCESSFULLY IN IMPLEMENTING THE AIRPORT CORE PROGRAMME.

’’HOWEVER, I BELIEVE THAT THESE REMEDIAL MEASURES WILL ONLY TAKE US PART OF THE WAY. WHAT WE NEED IS A THOROUGH OVERHAUL OF PUBLIC WORKS PROCEDURES, PRACTICES AND SYSTEMS. OUR OBJECTIVE MUST BE TO INCREASE SUBSTANTIALLY OUR CAPACITY TO DELIVER PROJECTS ON TIME AND WITHIN BUDGET," HE SAID.

HE SAID HE HAD ASKED THE SECRETARY FOR WORKS TO CARRY OUT AN URGENT REVIEW AND TO REPORT TO HIM BY THE END OF JUNE.

THE SECRETARY FOR WORKS WILL LOOK BEYOND THE GOVERNMENT’S RANKS FOR ADVICE AND ALSO DRAW ON THE EXPERIENCE AND EXPERTISE OF THE PRIVATE SECTOR, IN WHICH HE HIMSELF HAS CONSIDERABLE EXPERIENCE.

MR MACLEOD SAID: "I BELIEVE THIS POINT TO BE CRUCIAL: WE NEED TO APPLY PRIVATE SECTOR BEST PRACTICE TO THE PUBLIC SECTOR. AND THE SECRETARY FOR WORKS WILL OF COURSE TAKE PARTICULAR ACCOUNT OF THE VIEWS OF MEMBERS."

AMONG THE KEY ISSUES ON WHICH THE FINANCIAL SECRETARY HAS ASKED FOR CONCRETE RECOMMENDATIONS ARE:

* THE EXTENT TO WHICH THE SYSTEMS EMPLOYED SUCCESSFULLY IN MANAGING THE AIRPORT CORE PROGRAMME MIGHT BE APPLIED TO NONAIRPORT PROJECTS,

* THE SCOPE FOR GREATER USE OF THE DESIGN-AND-BUILD APPROACH TO CAPITAL WORKS PROJECTS,

* THE GREATER DEGREE OF ENTRUSTMENT OF SUITABLE PROJECTS TO THE PRIVATE SECTOR THAT MAY BE DESIRABLE, AND

WHAT CHANGES ARE NEEDED IN STAFFING LEVELS, PROCEDURES AND ORGANISATION.

------0-------

716 ........

WEDNESDAY, MARCH 3, 1993

- 16 -

GOVT SPENDING TO RISE TO $132.5 BILLION * * * * *

THE FINANCIAL SECRETARY HAS ESTIMATED THAT TOTAL GOVERNMENT SPENDING, EXCLUDING PAYMENTS FROM THE CAPITAL INVESTMENT FUND, WILL RISE TO $132.5 BILLION IN 1993/94, REPRESENTING AN INCREASE OF $17.4 BILLION COMPARED WITH THE ORIGINAL ESTIMATE FOR 1992/93.

MR MACLEOD SAID THE GOVERNOR IN HIS POLICY ADDRESS ANNOUNCED AMBITIOUS NEW POLICY TARGETS.

"THIS YEAR’S BUDGET PROVIDES THE RESOURCES NEEDED TO ACHIEVE THE GOALS SET FOR 1993/94, SUBJECT, OF COURSE, TO FINANCE COMMITTEE APPROVAL."

HE SAID ONE OF THE MOST VITAL IMPROVEMENTS WAS THE NEW COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME.

THIS SCHEME STARTS ON JULY 1 AND WILL SUBSTANTIALLY IMPROVE THE AVERAGE MONTHLY PAYMENT RECEIVED BY OVER 100,000 OF THE POORER MEMBERS OF SOCIETY.

INCLUDING PROPOSED INFLATION INCREASES DUE SHORTLY:

* THE AVERAGE PAYMENT FOR A SINGLE PERSON WILL BE $2,000: AN INCREASE OF $320 OR 19% OVER 1992, AND

* THE AVERAGE PAYMENT FOR A FAMILY OF FOUR WILL BE $5,880: AN INCREASE OF $1,050 OR 22%. THIS IS EQUIVALENT TO 91% OF THE PROJECTED AVERAGE MANUFACTURING WORKER’S WAGE AS AT SEPTEMBER 1993 - OR 101% OF THE SEPTEMBER 1992 AVERAGE WAGE.

POINTING OUT THAT THERE IS A WIDESPREAD MISCONCEPTION THAT BENEFICIARIES OF SOCIAL SECURITY HAVE HAD TO RELY ON THE FORMER BASIC RATE TO MEET ALL THEIR NEEDS, HE SAID LESS THAN 1% OF ALL BENEFICIARIES RECEIVED THE BASIC RATE WITHOUT ANY FORM OF ADDITIONAL PAYMENT.

"IT IS ENTIRELY MISLEADING FOR ANY DISCUSSION OF THIS ISSUE TO FOCUS ON THE BASIC RATE," HE SAID.

THE OTHER IMPROVED SERVICES WHICH WILL BE PROVIDED IN THE COMING YEAR TO IMPLEMENT THE GOVERNOR’S POLICY ADDRESS INCLUDE:

* FOR THE ELDERLY, AN EXTRA 1,780 PLACES WILL BE PROVIDED IN CARE-AND-ATTENTION HOMES AND HOMES FOR THE AGED.

* FOR THE DISABLED, AN EXTRA 1,810 PLACES WILL BE PROVIDED IN RESIDENTIAL AND OTHER FACILITIES.

* FOR CHILDREN, AN EXTRA 1,920 PLACES WILL BE PROVIDED IN NURSERIES, CRECHES, CHILDREN’S HOMES AND SMALL GROUP HOMES.

/* FOR THE .........

WEDNESDAY, MARCH 3, 1993

* FOR THE SICK, 950 EXTRA HOSPITAL BEDS WILL BE PROVIDED,

TOGETHER WITH NINE NEW CLINICS OR SERVICE UNITS.

* FOR PRIMARY SCHOOLS, 785 EXTRA TEACHERS WILL BE PROVIDED,

REDUCING CLASS SIZES AND IMPROVING PUPIL-TEACHER RATIOS.

* FOR THE FIGHT AGAINST CRIME, AN EXTRA 800 POLICE OFFICERS

WILL BE DEPLOYED ON THE STREETS, AND BACKING THEM UP, THE

BEST EQUIPMENT THAT CAN BE PROVIDED.

--------0-----------

NEW EXPENDITURE INITIATIVES FOR 1993

*****

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, TODAY (WEDNESDAY) ANNOUNCED A SERIES OF NEW EXPENDITURE INITIATIVES FOR 1993 TO TACKLE LONGSTANDING PROBLEMS IN 10 AREAS OF MAJOR SOCIAL AND ECONOMIC IMPORTANCE.

THESE WERE IN ADDITION TO THE TARGETS SET BY THE GOVERNOR IN HIS POLICY ADDRESS LAST OCTOBER.

IN HIS BUDGET SPEECH TO THE LEGISLATIVE COUNCIL, MR MACLEOD SAID HONG KONG’S CURRENT FINANCIAL STRENGTH ALLOWED THE GOVERNMENT TO BE MORE AMBITIOUS ON NON-RECURRENT EXPENDITURE.

APART FROM THE PACKAGE OF NEW INITIATIVES, THE FINANCIAL SECRETARY ALSO ANNOUNCED AN EXPANSION TO THE KINDERGARTEN FEE REMISSION SCHEME WHICH WILL RESULT IN AN EXTRA 32,000 FAMILIES QUALIFYING FOR FEE REMISSION. THIS WILL COST $13 MILLION A YEAR.

HE ALSO AGREED TO MEMBERS’ SUGGESTIONS FOR INTRODUCING A MORTGAGE - INTEREST SUBSIDY SCHEME TO PROVIDE HOUSING BENEFITS TO STAFF IN AIDED SCHOOLS AND IN SUBVENTED SOCIAL WELFARE AND HEALTH ORGANISATIONS. THIS SCHEME WILL COST $48 MILLION IN THE FIRST FULL YEAR, RISING TO $94 MILLION IN THE FIFTH YEAR.

OUTLINING HIS PACKAGE OF INITIATIVES, MR MACLEOD SAID HE HAD MADE A PARTICULAR EFFORT TO TAKE INTO ACCOUNT MEMBERS’ USEFUL SUGGESTIONS DURING THE BUDGET CONSULTATION EXERCISE.

SPECIAL FUND ON AIDS AND RELIEF FOR WORK-RELATED VICTIMS

TO HELP HIV-INFECTED HAEMOPHILIACS CAUSED BY BLOOD TRANSFUSION, MR MACLEOD PROPOSED TO SET UP A SPECIAL FUND OF $350 MILLION TO COVER BOTH THE COSTS OF EX-GRATIA PAYMENTS AND THE MEDICAL AND SUPPORT SERVICES THEY REQUIRE, AND HELP FINANCE A PROGRAMME OF AIDS-RELATED EDUCATION AND PUBLICITY TO HELP PREVENT THE SPREAD OF THIS TERRIBLE DISEASE.

/FOR WORKERS .......

WEDNESDAY, MARCH 3, 1993

18 -

FOR WORKERS INFECTED WITH PNEUMOCONIOSIS, HE PROPOSED TO MAKE A $100 MILLION GRANT TO IMPROVE THE EX-GRATIA SCHEME FOR SUFFERERS DIAGNOSED BEFORE JANUARY 1, 1981. THIS WOULD BE IN PARALLEL WITH PROPOSED IMPROVEMENTS TO THE STATUTORY SCHEME FOR THOSE DIAGNOSED AFTER JANUARY 1, 1981, TO BE FUNDED BY AN INCREASE IN THE LEVY. AT PRESENT BOTH CATEGORIES RECEIVE ONLY ONE-OFF PAYMENTS. IN FUTURE, THEY WILL RECEIVE REGULAR PAYMENTS.

FOR WORKERS INJURED OR KILLED DURING ACCIDENTS AT WORK, THE FINANCIAL SECRETARY PROPOSED TO SET UP A NEW FUND TO PROVIDE IMMEDIATE INTEREST-FREE LOANS TO EMPLOYEES INJURED AT WORK AND TO THE DEPENDANTS OF EMPLOYEES WHO DIE AS A RESULT OF WORK-RELATED ACCIDENTS. THE GOVERNMENT’S CONTRIBUTION TO THE FUND WILL BE $10 MILLION.

NORTH DISTRICT HOSPITAL

MR MACLEOD PROPOSED TO ALLOCATE APPROXIMATELY $1.1 BILLION AT TODAY’S PRICES FOR THE CONSTRUCTION OF A 600-BED HOSPITAL FOR NORTH DISTRICT TO BE COMPLETED BY 1997.

HEALTH CARE

MR MACLEOD PROPOSED TO MAKE A GRANT OF $50 MILLION TO THE HOSPITAL AUTHORITY TO FUND A RESEARCH PROGRAMME TO ASSESS THE COSTEFFECTIVENESS OF NEW TECHNOLOGIES AND TREATMENT TECHNIQUES.

"WE MUST ENSURE THAT EVERY DOLLAR WE SPEND ON HEALTH CARE IS USED TO THE BEST POSSIBLE EFFECT," HE SAID. "THAT IT IS NOT SPENT ON OVERHEADS BUT IS USED, AS FAR AS POSSIBLE, DIRECTLY TO BENEFIT THE PATIENT."

STRESSING THE GOVERNMENT’S COMMITMENT TO IMPROVING THE COMMUNITY’S HEALTH AND ITS MEDICAL CARE, HE NOTED THAT $17.2 BILLION WOULD BE SPENT IN THIS AREA IN 1993/94.

CLEANING UP THE HARBOUR

MR MACLEOD PROPOSED TO ALLOCATE AN EXTRA $1.9 BILLION ON TOP OF THE $3 BILLION ANNOUNCED BY THE GOVERNOR LAST OCTOBER FOR SEWERAGE FACILITIES TO CLEAN UP THE HARBOUR. THIS WILL REDUCE CHARGES TO BE BORNE BY THE COMMUNITY. HE SAID THE GOVERNMENT WOULD CARRY OUT A COMPREHENSIVE PUBLIC CONSULTATION EXERCISE IN THE COMING MONTHS ON FAIR AND AFFORDABLE LEVELS OF CHARGING.

/SANDWICH CLASS .......

WEDNESDAY, MARCH 3, 1993

19 -

SANDWICH CLASS HOUSING

THE FINANCIAL SECRETARY PROPOSED TO MAKE A PAYMENT OF $2 BILLION TO THE HOUSING SOCIETY TO SPEED UP THE INTERIM SCHEME TO HELP GENUINE, FIRST-TIME HOME BUYERS IN THE SANDWICH CLASS TO PURCHASE FLATS AT A DISCOUNT. THIS SCHEME WILL BENEFIT UP TO 3,000 FAMILIES IN THE NEXT TWO TO THREE YEARS.

HE SAID IT WOULD BE MADE CLEAR TO THE HOUSING SOCIETY THAT THE PACE AT WHICH THEY PROCEED MUST HAVE REGARD TO TRENDS IN THE PROPERTY MARKET, TO AVOID PUSHING PRICES UP.

IMPROVING MANPOWER SKILLS

TO HELP THE OPEN LEARNING INSTITUTE (OLI) DEVELOP NEW, SELFFINANCING COURSES, ESPECIALLY IN CHINESE, THE FINANCIAL SECRETARY PROPOSED TO MAKE A $100 MILLION GRANT FOR OLI TO ESTABLISH A GENERAL DEVELOPMENT FUND.

HE ALSO PROPOSED TO INJECT $50 MILLION INTO THE NEW TECHNOLOGY TRAINING SCHEME TO DOUBLE THE NUMBER OF WORKERS LEARNING NEW SKILLS.

SPORTS AND PERFORMING ARTS

MR MACLEOD PROPOSED A $100 MILLION GRANT TO THE SPORTS DEVELOPMENT BOARD TO HELP FOSTER THE DEVELOPMENT OF SPORTS SCIENCE AND MEDICINE IN GENERAL.

TO SUPPORT NEW AND DEVELOPING ARTISTIC GROUPS, HE PROPOSED A GRANT OF $30 MILLION TO THE SIR DAVID TRENCH FUND.

SUPPORT FOR TRADE AND INDUSTRY

MR MACLEOD PROPOSED TO PROVIDE $2.4 BILLION TO BUILD AN EXTENSION TO THE CONVENTION AND EXHIBITION CENTRE.

HE SAID THERE WAS A NEED TO REVIEW AND RATIONALISE THE TRADE DEVELOPMENT COUNCIL’S FUNDING ARRANGEMENTS IN RECOGNITION OF ITS SUCCESS IN GENERATING INCOME.

THIS MAY WELL ENABLE THE GOVERNMENT TO INCREASE THE FUNDS FOR SUPPORTING INDUSTRY, HE SAID.

TRANSPORT INFRASTRUCTURE

THE FINANCIAL SECRETARY HAD DECIDED TO TAKE ADVANTAGE OF THIS YEAR’S SURPLUS TO EASE GROWING PRESSURE ON THE ROAD SYSTEM SERVING THE NORTHWEST NEW TERRITORIES.

/FOR THE ........

WEDNESDAY, MARCH 3, 1993

- 20 -

FOR THE SHORT TERM, HE PROPOSED THAT IMPROVEMENT TO THE TUEN MUN HIGHWAY SHOULD NOW BE FUNDED AND BEGIN THIS YEAR. THIS WILL INVOLVE CONSTRUCTION OF NEW "CLIMBING LANES" FOR SLOW-MOVING TRAFFIC AT A COST OF $1 BILLION.

FOR THE MEDIUM TERM, A NEW ROAD TO THE BORDER WAS ESSENTIAL. THE FIRST PRIORITY WAS ROUTE 3 FROM TSING YI TO AU TAU BY WAY OF A NEW BRIDGE AT TING KAU, AND A TUNNEL UNDER THE COUNTRY PARK. HE PROPOSED TO EARMARK $4 BILLION AS THE GOVERNMENT’S POTENTIAL CONTRIBUTION, WHILST WAYS WERE BEING EXAMINED ON HOW BEST TO ADVANCE THIS PROJECT, IN PARTNERSHIP WITH THE PRIVATE SECTOR.

TOURISM

MR MACLEOD PROPOSED TO MAKE A CAPITAL GRANT OF $200-$300 MILLION TO THE HONG KONG TOURIST ASSOCIATION TO PURCHASE THEIR OWN PREMISES, SO THAT MONEY NOW SPENT ON OFFICE RENT COULD BE USED TO BOOST PROMOTION OF HONG KONG’S TOURIST INDUSTRY.

A TOURISM RANKED AS ONE OF HONG KONG’S MAJOR INDUSTRIES, WITH ESTIMATED RECEIPTS OF $48 BILLION LAST YEAR, HE RECOMMENDED A SUBVENTION OF $337 MILLION TO THE HKTA IN THE COMING FINANCIAL YEAR.

-----0------

1993 EXPENDITURE IN PERSPECTIVE *****

THE PACKAGE OF NEW EXPENDITURE INITIATIVES, TOGETHER WITH THE SUBSTANTIAL INCREASES IN RECURRENT FUNDING FOR SOCIAL WELFARE, HEALTH AND EDUCATION ANNOUNCED BY THE GOVERNOR LAST OCTOBER, REPRESENTS A MAJOR FINANCIAL COMMITMENT, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD SAID.

"THAT I AM ABLE TO EMBARK UPON SUCH A PROGRAMME WITHIN MY BUDGETARY GUIDELINES IS ONE OF THE REWARDS OF HONG KONG’S ECONOMIC SUCCESS," HE SAID.

MR MACLEOD POINTED OUT THAT THE DRAFT ESTIMATES PROVIDE FOR REAL INCREASES IN RECURRENT EXPENDITURE ON SOCIAL WELFARE, HEALTH AND EDUCATION OF MORE THAN 7%.

"I EMPHASISE THAT THESE ARE REAL INCREASES, AFTER ALLOWING FOR INFLATION," HE ADDED.

PUBLIC EXPENDITURE WHICH, IN ADDITION TO GOVERNMENT EXPENDITURE, INCLUDES THE SPENDING OF THE TWO MUNICIPAL COUNCILS, THE HOUSING AUTHORITY AND THE LOTTERIES FUND, WILL AMOUNT TO $156.6 BILLION IN 1993/94. THIS REPRESENTS 18.5% OF GDP. PRESENT FORECASTS INDICATE THAT THE PROPORTION WILL REMAIN BELOW 20% IN THE PERIOD TO 1996/97.

/"LAST YEAR, .......

WEDNESDAY, MARCH 3, 1993

- 21

"LAST YEAR, I TOLD THIS COUNCIL THAT I INTENDED IN FUTURE TO PRESENT THE COMPLEX BUDGETARY DATA IN A FORM WHICH IS MORE USER-FRIENDLY AND ACCESSIBLE TO THE COMMUNITY AT LARGE. I WILL TODAY BE PUBLISHING TWO LEAFLETS WHICH I HOPE HELP TO DO JUST THAT,” HE SAID.

OF THE TWO LEAFLETS, THE FIRST IS CALLED AN "INTRODUCTION TO THE ESTIMATES", AND PROVIDES AN ANALYSIS OF SOME OF THE KEY FIGURES, INCLUDING THE REAL INCREASES IN EXPENDITURE IN EACH OF OUR PROGRAMME AREAS.

THE SECOND LEAFLET, "WHAT THE BUDGET MEANS FOR YOU", SUMMARISES THE FINANCIAL SECRETARY’S PROPOSALS IN SIMPLER TERMS FOR THE GENERAL PUBLIC.

IN THE BUDGET SPEECH ITSELF, HE SAID HE HAD ALSO CONTINUED THE TREND HE BEGAN LAST YEAR TO MAKE THE TEXT MORE READABLE AND LESS TECHNICAL.

-----0------

MAJOR SALARIES TAX CONCESSIONS PROPOSED ******

PROPOSALS FOR MAJOR SALARIES TAX CONCESSIONS WERE ANNOUNCED TODAY BY THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS 1993/ 94 BUDGET.

UNDER HIS PROPOSALS:

- OVER 250,000 EXISTING TAXPAYERS WILL NO LONGER HAVE TO PAY ANY SALARIES TAX.

- A FURTHER 1.2 MILLION TAXPAYERS WILL PAY LESS TAX.

- THIS MEANS THAT OVER 90% OF SALARIES TAXPAYERS WILL BENEFIT FROM THE PROPOSED CONCESSIONS.

"THE GOOD NEWS IS THAT WE ARE IN A POSITION TO REDUCE THE TAX BURDEN AND TO LEAVE MORE MONEY IN THE TAXPAYER’S POCKET, WHERE IT BELONGS," MR MACLEOD SAID IN OUTLINING HIS REVENUE PROPOSALS.

DESCRIBING THE CONCESSIONS AS MAJOR, MR MACLEOD SAID HE BELIEVED THEY MORE THAN FULFILLED THE PLEDGES HE GAVE TO THE COUNCIL AT THE END OF LAST YEAR’S BUDGET DEBATE.

"THEY WILL COST $2.6 BILLION IN 1993/94 AND ALMOST $17 BILLION UP TO 1997. TO PUT THIS IN PERSPECTIVE, HAD I LIMITED THE CONCESSIONS TO SIMPLY INDEXING SALARIES TAX ALLOWANCES TO INFLATION, THE COST WOULD HAVE BEEN ONLY A THIRD OF THE CONCESSIONS I HAVE PUT FORWARD AND, OF COURSE, THE REAL BENEFITS TO TAXPAYERS CORRESPONDINGLY LESS."

HIS THREE PROPOSALS FOR SALARIES TAX CONCESSIONS IN RESPECT OF TAX ALLOWANCES ARE:

/* FIRST, TO .........

WEDNESDAY, MARCH 3, 1993

- 22

* FIRST, TO INCREASE THE BASIC AND MARRIED PERSON ALLOWANCES BY NEARLY 22% (FROM $46,000 TO $56,000 AND FROM $92,000 TO $112,000 RESPECTIVELY).

"THESE INCREASES ARE MORE THAN DOUBLE THE CURRENT RATE OF INFLATION. THEY SHOULD GO A LONG WAY TOWARDS MEETING THE CONCERNS OF RELATIVELY LESS WELL-OFF TAXPAYERS AS WELL AS THE SANDWICH CLASS," THE FINANCIAL SECRETARY SAID.

» SECONDLY, TO INCREASE THE ALLOWANCES FOR THE FIRST AND SECOND CHILD AND FOR DEPENDENT PARENTS TO A STANDARD $17,000.

"IN THE CASE OF THE SECOND CHILD, THIS IS AN INCREASE OF NEARLY 50%. "

* THIRDLY, TO INCREASE THE SINGLE-PARENT ALLOWANCE BY MORE THAN 17% (FROM $23,000 TO $27,000).

"THIS CONCESSION WILL EASE THE SPECIAL DIFFICULTIES WHICH THE SINGLE PARENT FACES IN BRINGING UP A FAMILY.”

MR MACLEOD SAID THESE IMPROVED ALLOWANCES WOULD MEAN A SUBSTANTIAL LOSS IN REVENUE. NEVERTHELESS, THE FINANCIAL POSITION WAS STRONG ENOUGH TO ALLOW HIM TO GO EVEN FURTHER IN REDUCING THE COMMUNITY’S TAX BURDENS IN LINE WITH THE REQUESTS OF MEMBERS FOR A REVIEW OF TAX BANDS.

HE EXPLAINED THAT UNDER THE PRESENT SYSTEM, TAX BANDS WERE SET AT FOUR LEVELS. THE FIRST $20,000 OF SALARIES INCOME (AFTER TAKING ALLOWANCES INTO ACCOUNT) WAS TAXED AT 2%; THE NEXT $20,000 AT 9%; THE THIRD AT 17%; AND THE REMAINDER AT 25%. THE TOTAL AMOUNT OF TAX PAYABLE WAS, HOWEVER, SUBJECT TO A LIMIT OF 15% THE SO-CALLED STANDARD RATE.

"THERE IS OCCASIONALLY CONFUSION AS TO WHY SOME PORTIONS OF SALARIES ARE TAXED AT RATES HIGHER THAN THE STANDARD RATE. THE REASON IS THAT THE COMBINED EFFECT OF THE ALLOWANCES AND THE TAX BANDS IS TO PRODUCE A SYSTEM UNDER WHICH THE EFFECTIVE TAX RATE-THE PERCENTAGE OF TOTAL SALARY ACTUALLY PAID - RISES PROGRESSIVELY IN LINE WITH INCREASED SALARY INCOME, UNTIL EVENTUALLY (FOR A SMALL MINORITY OF TAXPAYERS) IT REACHES 15%.

"I PROPOSE THIS YEAR TO WIDEN THE SECOND AND THIRD TAX BANDS, FROM $20,000 TO $30,000. THIS WILL BE OF PARTICULAR BENEFIT TO THOSE EARNING BETWEEN $10,000 AND $40,000 A MONTH - ROUGHLY SPEAKING, THE

SANDWICH CLASS AND THOSE WHO FALL JUST OUTSIDE IT."

AS A RESULT OF THESE MEASURES:

» A TYPICAL SINGLE INCOME FAMILY OF FOUR WILL HAVE TO EARN

MORE THAN $483,000 A YEAR BEFORE PAYING TAX AT THE STANDARD

RATE, COMPARED WITH $391,800 AT PRESENT,

* THE SALARIES TAX BILL FOR A TYPICAL SANDWICH CLASS FAMILY OF FOUR, EARNING $18,000 A MONTH, WILL BE REDUCED BY OVER 56% (OR OVER $8,000), AND

/* A SIMILAR ........

WEDNESDAY, MARCH 3, 1993

23

* A SIMILAR HOUSEHOLD EARNING THE MEDIAN INCOME OF $11,500 A MONTH WILL CEASE TO PAY ANY SALARIES TAX AT ALL.

MR MACLEOD SAID IN RESPONSE TO THE VIEWS EXPRESSED BY MANY MEMBERS, THE STANDARD RATE OF 15% WOULD REMAIN THE MAXIMUM PROPORTION OF MONTHLY EARNINGS WHICH ANY EMPLOYEE WOULD PAY IN SALARIES TAX.

INTRODUCING HIS REVENUE PROPOSALS, MR MACLEOD SAID HIS MAIN AIM HAD BEEN TO MAINTAIN FISCAL PRUDENCE WHILE, AT THE SAME TIME, REDUCING THE TAX BURDEN AS FAR AS POSSIBLE FOR THE LARGEST NUMBER OF TAX-PAYING HOUSEHOLDS. HE HAD FACED THREE CHALLENGES:

"BECAUSE TAX CONCESSIONS ARE RECURRENT IN NATURE, EVEN A MODEST CUT IN OUR PRINCIPAL TAXES CAN HAVE A MAJOR IMPACT ON OUR CURRENT REVENUE FLOWS AND FUTURE RESERVES. WE CANNOT GO TOO FAR WITHOUT JEOPARDISING THE PRUDENT LEVEL OF RESERVES WHICH WE BELIEVE TO BE NECESSARY.

- "WE NEED TO AVOID MEASURES WHICH WOULD ADD SIGNIFICANTLY TO INFLATION.

- "WE NEED TO AVOID ANY STEPS THAT WOULD COMPLICATE OUR SIMPLE TAX SYSTEM. AND WE MUST PROGRESSIVELY CLOSE LOOPHOLES FOR ESCAPING THE TAX PROPERLY PAYABLE."

HE ADDED: "SETTING PRIORITIES MEANS MAKING CHOICES. AND IN MY PROPOSALS I HAVE RELIED ON THE ADVICE I HAVE RECEIVED FROM MEMBERS DURING TWO ROUNDS OF DETAILED CONSULTATIONS WITH THEM. I FOUND THESE DISCUSSIONS EXTREMELY USEFUL."

HE NOTED THAT LAST YEAR THERE HAD BEEN A SPIRITED DEBATE ABOUT SALARIES TAX. AT THE HEART OF THE CONTROVERSY WAS THE QUESTION: AT WHAT LEVEL SHOULD TAX ALLOWANCES AND TAX BANDS BE SET. IN PARTICULAR, MEMBERS HAD EXPRESSED CONCERN OVER WHETHER LEVELS OF TAX ALLOWANCES HAD KEPT UP WITH THE RATE OF INFLATION OVER THE PAST FEW YEARS.

"IT IS IMPORTANT TO REMEMBER THAT NOT ONLY HAVE TAX ALLOWANCES BEEN INCREASED FAIRLY REGULARLY BUT ALSO THAT TAX BANDS AND THE MARGINAL RATES HAVE BEEN ADJUSTED ON SEVERAL OCCASIONS. THE COMBINED EFFECT OF THESE CONCESSIONS ON SALARIES TAX PAYERS HAS BEEN TO MORE THAN KEEP PACE WITH INFLATION.

"FOR THIS YEAR, MY STARTING POINT MUST BE THE UNDERTAKING I GAVE TO THIS COUNCIL WHEN CONCLUDING THE 1992 BUDGET DEBATE. I SAID THEN THAT, SUBJECT TO ECONOMIC AND FISCAL CONSTRAINTS, I PLANNED TO INCREASE SALARIES TAX ALLOWANCES SUBSTANTIALLY, AS WELL AS TO REVIEW TAX BANDS. I ADDED THAT THESE IMPROVEMENTS WOULD SUBSTANTIALLY LESSEN THE TAX LIABILITY OF THE "SANDWICH CLASS."

"IN THE CONSULTATION EXERCISE, IT BECAME CLEAR THAT MEMBERS ATTACHED PARTICULAR IMPORTANCE TO INCREASES IN TAX ALLOWANCES, AND I HAVE TAKEN THIS INTO ACCOUNT IN SHAPING MY PROPOSALS."

--------0

/24 ........

WEDNESDAY, MARCH 3, 1993

24 -

NO CHANGE IN CORPORATE PROFITS TAX ******

NO CHANGE IS PROPOSED IN THE LEVEL OF CORPORATE PROFITS TAX, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID IN PRESENTING HIS 1993/94 BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

"AS I FORECAST IN MY BUDGET SPEECH LAST YEAR, THE INCREASE TO 17.5% HAD NO APPRECIABLE IMPACT ON LOCAL OR INTERNATIONAL ENTHUSIASM FOR INVESTMENT IN HONG KONG. INDEED, THE FIGURES ON CAPITAL FORMATION SHOW THAT 1992 WAS AN EXCELLENT YEAR FOR INVESTMENT GROWTH," HE SAID.

"NEVERTHELESS, I DID EXAMINE THE CASE FOR A REDUCTION IN PROFITS TAX. A REDUCTION OF ONE PERCENTAGE POINT IN PROFITS TAX WOULD HAVE COST $1.6 BILLION A YEAR. THIS LOSS OF REVENUE WOULD HAVE MEANT I HAD TO BE LESS GENEROUS IN REDUCING THE TAX BURDEN FOR OUR SALARIES TAX-PAYING HOUSEHOLDS, WHICH WAS THE OVERWHELMING CONCERN OF MEMBERS."

STAMP DUTY

MR MACLEOD SAID IN EACH OF THE PAST TWO YEARS, THE LEVEL OF STAMP DUTY ON STOCK TRANSFERS HAD BEEN LOWERED. THIS WAS IN RECOGNITION OF A WORLD-WIDE TREND TOWARDS REDUCING THE COST OF STOCK MARKET TRANSACTIONS. IN 1991, THE RATE OF CONTRACT NOTE DUTY WAS REDUCED FROM 0.6% TO 0.5%. LAST YEAR, HE HAD MADE A FURTHER REDUCTION TO 0.4%, AND HE NOW PROPOSED TO MAKE ONE MORE REDUCTION FROM 0.4% TO 0.3%.

"THIS REDUCTION SHOULD HELP HONG KONG TO REMAIN COMPETITIVE IN COMPARISON WITH THE OVERALL COST OF TRADING ELSEWHERE IN THE WORLD. THIS CONCESSION WILL COST THE REVENUE A FURTHER $800 MILLION IN 1993/ 94, OR NEARLY $4 BILLION OVER THE PERIOD UP TO 1996/97.

"THE MAIN AIM OF THIS CONCESSION IS TO ENSURE HONG KONG REMAINS COMPETITIVE AND HENCE TO GENERATE BUSINESS IN THIS KEY SECTOR. I BELIEVE THAT BROKERS WILL FULLY UNDERSTAND THE IMPORTANCE OF PASSING ON THE BENEFIT TO THE INVESTING PUBLIC," HE SAID.

ESTATE DUTY

MR MACLEOD SAID FOR TWO YEARS, NO ADJUSTMENT HAD BEEN MADE TO THE LEVEL OF ESTATE DUTY. THIS WAS CURRENTLY CHARGED AT A RATE OF 6% ON ESTATES VALUED AT BETWEEN $4 MILLION AND $4.5 MILLION; 12% ON ESTATES BETWEEN $4.5 MILLION AND $5 MILLION; AND 18% ON ESTATES OVER $5 MILLION.

"ALTHOUGH THE MATRIMONIAL HOME IS ALREADY EXEMPT FROM ESTATE DUTY, I BELIEVE THAT IT IS NOW TIME TO REDUCE THE IMPACT WHICH THIS DUTY HAS ON RELATIVELY SMALL ESTATES. I PROPOSE TO INCREASE THE LEVEL BELOW WHICH NO DUTY IS PAYABLE ON ESTATES TO $5 MILLION.

/"ABOVE THAT ........

WEDNESDAY. MARCH 3, 1993

25

’’ABOVE THAT LEVEL, I PROPOSE THAT ESTATE DUTY BE PAYABLE AT 6% ON ESTATES OF BETWEEN $5 MILLION AND $6 MILLION; 12% FOR ESTATES BETWEEN $6 MILLION AND $7 MILLION AND 18% ON ESTATES VALUED AT OVER $7 MILLION.

’’THIS CONCESSION WILL COST $50 MILLION IN MILLION OVER THE PERIOD UP TO 1996/97,” HE SAID.

1993/94 AND $220

RATES

MR MACLEOD SAID MEMBERS MIGHT BE RELIEVED - BUT NOT SURPRISED -TO KNOW THAT HE DID NOT INTEND THIS YEAR TO PROPOSE ANY INCREASE IN THE GENERAL RATES PERCENTAGE CHARGE.

’’NEVERTHELESS, RATES ARE SIGNIFICANT, BOTH AS A RELATIVELY PROGRESSIVE TAX AND A STABLE SOURCE OF REVENUE. IT IS IMPORTANT THAT RATES ACTUALLY CHARGED ARE ADJUSTED REGULARLY TO REFLECT THE CHANGING RENTAL VALUES OF PROPERTY OF DIFFERENT TYPES AND IN DIFFERENT LOCATIONS.

”OUR ROUTINE, THREE-YEARLY RATES REVALUATION WILL BE CONDUCTED THIS YEAR AND COME INTO EFFECT ON APRIL 1 1994. I ALSO INTEND TO PROPOSE A SUITABLE RATES ’’CAP” TO ALLOW TIME FOR THOSE RATE-PAYERS WITH PARTICULARLY HIGH INCREASES TO ADJUST TO THE NEW LEVELS OF CHARGE. I BELIEVE THAT THIS WILL MEET THIS COUNCIL’S CONCERNS," HE SAID.

FUEL, ALCOHOL AND TOBACCO

MR MACLEOD SAID HE DID NOT PROPOSE TO GO BEYOND WHAT WOULD BE NECESSARY TO MAINTAIN THE REAL VALUE OF DUTIES ON FUEL, ALCOHOL AND TOBACCO AFTER ALLOWING FOR INFLATION. HE THEREFORE PROPOSED AN INCREASE OF 9.5% IN THE SPECIFIC DUTY RATES ON THESE COMMODITIES.

TAX-LOADED FEES AND GOVERNMENT UTILITY CHARGES

MR MACLEOD SAID REGULAR REVISION OF GOVERNMENT UTILITY CHARGES AND TAX-LOADED FEES WAS ESSENTIAL TO MAINTAIN THEIR REAL VALUE AND TO AVOID THE NEED TO MAKE UP REVENUE SHORTFALLS FROM OTHER SOURCES. BUT, AS LAST YEAR, NECESSARY INCREASES WOULD BE PHASED IN DURING THE COURSE OF 1993/94 TO MINIMISE THE IMPACT ON THE PUBLIC OF INFLATION. THEY WILL NOT THEREFORE BE IMPLEMENTED AS PART OF THE BUDGET PACKAGE.

IMPLEMENTATION

MR MACLEOD SAID HIS PROPOSALS ON DUTIABLE COMMODITIES WOULD COME INTO EFFECT TODAY UNDER AN APPROPRIATE PUBLIC REVENUE PROTECTION ORDER. PROPOSALS ON SALARIES TAX ALLOWANCES AND BANDS, ESTATE DUTY, ENTERTAINMENTS TAX AND STAMP DUTY, AND CONCESSIONS IN RESPECT OF DISABLED DRIVERS WOULD COME INTO EFFECT ON APRIL I THIS YEAR.

-----0------

Z26 ........

WEDNESDAY, MARCH 3, 1993

26

TIME RIGHT TO REMOVE DUTY ON COSMETICS

*****

LEGISLATION WILL BE INTRODUCED TO ABOLISH THE PRESENT DUTY ON COSMETICS, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

’’FOLLOWING MY ABOLITION LAST YEAR OF THE DUTY ON SOFT DRINKS, AND IN THE LIGHT OF REQUESTS BY THE TOURISM AND COSMETICS INDUSTRIES, I AM NOW PERSUADED THAT IT IS THE RIGHT TIME TO TAKE ACTION ON THE DUTY OF 30% ON COSMETIC PRODUCTS, WHICH INCLUDE, FOR EXAMPLE, MANY ORDINARY SKIN CREAMS AND PERFUMES AS WELL AS MORE EXPENSIVE BEAUTY PRODUCTS,” MR MACLEOD SAID IN PRESENTING HIS 1993/94 BUDGET.

THE CONCESSION WOULD COST $400 MILLION IN 1993/94, AND $1.7 BILLION OVER THE PERIOD UP TO 1996/97. HE ANTICIPATED THAT THE INDIRECT BENEFIT TO THE ECONOMY AS A RESULT OF INCREASED PURCHASES BY TOURISTS WOULD BE SIGNIFICANT.

"I HAVE RECEIVED AN UNDERTAKING FROM THE COSMETICS TRADE ASSOCIATIONS THAT, IF THE DUTY IS ABOLISHED, RETAIL PRICES OF COSMETIC PRODUCTS WILL BE REDUCED IN THE COMING YEAR BY AN AVERAGE OF BETWEEN 10-12%," HE ADDED.

--------0

CHEST TO BENEFIT FROM REMOVAL OF TAX *****

THE ROYAL HONG KONG JOCKEY CLUB WILL MAKE A DONATION OF $10 MILLION ANNUALLY TO THE COMMUNITY CHEST FOLLOWING THE REMOVAL OF A TAX ON ENTRANCE TO RACE MEETINGS.

THE TAX, COLLECTED BY THE ROYAL HONG KONG JOCKEY CLUB AND PASSED ON TO THE GOVERNMENT, WAS THE ONLY REMAINING TAX LEVIED UNDER THE ENTERTAINMENT TAX ORDINANCE, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

"WHILE THIS MEASURE WILL INCREASE THE JOCKEY CLUB’S REVENUE BY NEARLY $10 MILLION IN 1993/94, THE CLUB HAS KINDLY AGREED TO DONATE AN EQUIVALENT AMOUNT EACH YEAR TO THE COMMUNITY CHEST.

"THE DONATION WILL GO TOWARDS MEETING THE CHEST’S OPERATING EXPENSES. THIS WILL MEAN THAT, IN FUTURE, EVERY DOLLAR MEMBERS OF THE PUBLIC DONATE TO THE CHEST WILL DIRECTLY BENEFIT THE CHARITY FOR WHICH IT WAS INTENDED," HE SAID IN PRESENTING HIS 1993/94 BUDGET.

"I SEE MERIT IN TIDYING UP AND SIMPLIFYING OUR TAX SYSTEM FURTHER BY REMOVING THE ENTERTAINMENT TAX FROM THE STATUTE BOOK ALTOGETHER," HE SAID.

/MR MACLEOD .......

WEDNESDAY, MARCH 3, 1993

27 -

MR MACLEOD NOTED THAT LAST YEAR HE HAD REMOVED THE ENTERTAINMENTS TAX ON CINEMA TICKETS.

"THIS ALLOWED CINEMA TICKET PRICES TO BE HELD DOWN FOR MOST OF THE YEAR AND GOT RID OF PAPERWORK BOTH FOR CINEMA OPERATORS AND FOR THE INLAND REVENUE DEPARTMENT.

"THIS WAS NOT A MASSIVE CONCESSION, BUT IT DID REMOVE A TAX WHICH FELL RATHER UNFAIRLY ON JUST ONE AREA OF THE ENTERTAINMENT INDUSTRY. IT ALSO HELPED TO SIMPLIFY OUR TAX SYSTEM," HE SAID.

--------0-----------

TRANSPORT CONCESSIONS FOR DISABLED, ELDERLY

*****

THREE TRANSPORT CONCESSIONS AIMED AT THE DISABLED AND THE ELDERLY WERE PROPOSED BY THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS 1993/94 BUDGET TODAY (WEDNESDAY).

MR MACLEOD SAID THE TWO GROUPS DESERVED SPECIAL ATTENTION, AND THE CONCESSIONS ADDRESSED THE PROBLEM OF THEIR DAILY TRANSPORT.

HE SAID:

* "IN ORDER TO ENABLE PUBLIC TRANSPORT OPERATORS EITHER TO INTRODUCE CONCESSIONARY FARES FOR THE ELDERLY, OR TO IMPROVE THEIR EXISTING CONCESSIONARY SCHEMES, I PROPOSE TO WAIVE THEIR ANNUAL LICENCE FEES AND RENTALS.

* "I HAVE BEEN CONVINCED BY REPRESENTATIVES OF THE DISABLED THAT THE TAX CONCESSIONS ALREADY GRANTED TO CARS SHOULD BE EXTENDED TO ENABLE THE DISABLED TO MAKE USE OF THREE-WHEEL VEHICLES AND SCOOTERS. AS A RESULT, DISABLED DRIVERS OF THESE VEHICLES WILL IN FUTURE BE EXEMPTED FROM FIRST REGISTRATION TAX, VEHICLE AND DRIVING LICENCE FEES, DUTY ON FUEL UP TO 100 LITRES A MONTH, AND CROSS HARBOUR TUNNEL TAX.

* "FINALLY, I WILL BE INTRODUCING MEASURES TO EXEMPT DISABLED DRIVERS FROM TOLLS WHEN USING GOVERNMENT TUNNELS."

THE CONCESSIONS WOULD, IN TOTAL, COST UP TO $70 MILLION IN 1993/94.

-----0------

/28 ........

WEDNESDAY, MARCH 3, 1993

- 28 -

PROPOSAL FOR COMPOSITE TAX RETURNS » » » » «

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) HE PROPOSED TO INTRODUCE A SYSTEM OF COMPOSITE TAX RETURNS OR CTRS, WITH EFFECT FROM APRIL 1, 1994.

A CTR WILL BE A SINGLE RETURN COVERING ALL TAXES LEVIED UNDER THE INLAND REVENUE ORDINANCE.

"I SHOULD EMPHASISE THAT NO ONE’S TAX LIABILITY WILL INCREASE AS A RESULT OF THIS MEASURE,” MR MACLEOD SAID IN PRESENTING HIS 1993/94 BUDGET.

"IT WILL AFFECT NEITHER THE RATES OF TAX NOR THE AMOUNTS DUE. ITS PURPOSE IS SIMPLY TO MAKE LIFE EASIER FOR THE TAXPAYER AND TO REDEPLOY CONSIDERABLE RESOURCES IN THE INLAND REVENUE DEPARTMENT TO COMBATING TAX AVOIDANCE AND EVASION.

"SOME OF THE MEASURES I HAVE ANNOUNCED TODAY WILL FURTHER SIMPLIFY WHAT IS ALREADY ONE OF THE MOST STRAIGHTFORWARD - AND LEAST ONEROUS - TAX SYSTEMS IN THE WORLD. BUT I HAVE SOME ADDITIONAL MEASURES WHICH I BELIEVE WILL FURTHER IMPROVE OUR TAX ADMINISTRATION.

"BECAUSE WE TAX PROFITS, SALARIES AND PROPERTY SEPARATELY, A TAXPAYER MAY HAVE TO COMPLETE UP TO THREE SEPARATE RETURNS AND, POSSIBLY, A PERSONAL ASSESSMENT. IN 1991/92, SOME 300,000 TAXPAYERS HAD TO FILL IN TWO OR MORE RETURNS, AT SOME INCONVENIENCE TO THE INDIVIDUAL AS WELL AS AN UNNECESSARY PAPERCHASE FOR THE INLAND REVENUE DEPARTMENT."

MR MACLEOD SAID HE WAS COMMITTED TO CLOSING SIGNIFICANT TAX LOOPHOLES AS THEY CAME TO LIGHT.

"ONE RECENT AREA OF CONCERN RELATES TO SECTION 21A OF THE INLAND REVENUE ORDINANCE. THIS PROVIDES THAT ONLY 10% OF CERTAIN PAYMENTS, SUCH AS ROYALTIES FOR THE USE OF INTELLECTUAL PROPERTY, ARE TREATED AS ASSESSABLE TO PROFITS TAX.

"SOME HONG KONG COMPANIES ARE EXPLOITING THIS PROVISION BY ENTERING INTO ARRANGEMENTS WITH OVERSEAS ASSOCIATES TO REDUCE THEIR PROFITS TAX LIABILITY.

"A BILL TO CLOSE THIS LOOPHOLE WILL BE INTRODUCED INTO THIS COUNCIL AS PART OF THE BUDGET PACKAGE. THE BILL WILL PROVIDE THAT WHERE A RELEVANT PAYMENT IS PAID OR CREDITED BY AN ASSOCIATE, THE FULL AMOUNT (RATHER THAN THE PRESENT 10%) WILL BE TREATED AS ASSESSABLE PROFITS. IN ORDER TO PREVENT POSSIBLE REVENUE LOSS, THIS LEGISLATION WILL HAVE EFFECT FROM TOMORROW."

MR MACLEOD SAID HE HAD REFERRED LAST YEAR TO THE NEED TO REFORM THE SYSTEM OF FIRST REGISTRATION TAX. AT PRESENT, SOME MOTOR VEHICLE IMPORTERS COULD REDUCE THEIR TAX LIABILITY BY ARTIFICIALLY DEPRESSING THE IMPORT PRICE OF VEHICLES.

/'•PREPARING TUI ........

WEDNESDAY, MARCH 3, 1993

- 29 -

’’PREPARING THE NECESSARY LEGISLATION HAS UNFORTUNATELY PROVED TO BE A COMPLEX TASK. WE NEED TO ENSURE THAT ALL VEHICLE IMPORTERS CAN OPERATE ON A LEVEL PLAYING FIELD BUT ALSO THAT THERE ARE NO SIGNIFICANT INCREASES IN THE AVERAGE PRICE OF ORDINARY MOTOR VEHICLES.

”WE ARE NOW APPROACHING THE FINAL STAGES OF THIS EXERCISE, AND I INTEND TO INTRODUCE AN AMENDMENT BILL INTO THIS COUNCIL WITHIN THIS LEGISLATIVE SESSION,’’ HE SAID.

MR MACLEOD SAID APART FROM RESTRICTING THE POTENTIAL FOR TAX AVOIDANCE AND EVASION THROUGH LEGISLATION, WE MUST MAKE SURE THAT DEPARTMENTS CONCERNED HAD ADEQUATE RESOURCES TO ENFORCE THE LAW AND THAT THESE RESOURCES WERE EFFECTIVELY DEPLOYED.

’’THE COMMISSIONER OF INLAND REVENUE’S FIELD AUDIT TEAMS, ESTABLISHED IN JUNE 1991, HAVE NOW AUDITED ALMOST 6,000 CASES AND RECOVERED TAX AND PENALTIES OF MORE THAN $120 MILLION. IN ADDITION, WE EXPECT THE INVESTIGATION UNITS TO RECOVER A FURTHER $500 MILLION IN 1992/93.

’’THESE RESULTS ARE ENCOURAGING, BUT I HAVE DECIDED TO INJECT SOME MORE RESOURCES IN THE COMING YEAR TO STRENGTHEN FURTHER THE INLAND REVENUE DEPARTMENT’S DRIVE AGAINST TAX EVASION," HE SAID.

------0--------

MODEST BUDGET DEFICIT OF $3.4 BILLION * * ♦ » ♦

A MODEST BUDGET DEFICIT OF $3.4 BILLION IS FORECAST AS A RESULT OF THE 1993/94 BUDGET’S EXPENDITURE AND REVENUE PROPOSALS.

"THIS DEFICIT ARISES BECAUSE WE ARE TAKING FULL AND SENSIBLE ADVANTAGE OF THE HIGHER-THAN-EXPECTED SURPLUSES OF THE LAST TWO YEARS, RATHER THAN SALTING AWAY EVEN MORE OF THE COMMUNITY’S MONEY TO BOOST OUR ACCUMULATED RESERVES," THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY) WHEN PRESENTING THE BUDGET TO THE LEGISLATIVE COUNCIL.

"THESE WILL AMOUNT TO $78 BILLION AT THE END OF 1996/97. I DO NOT BELIEVE EITHER THIS COUNCIL OR THE COMMUNITY WOULD HAVE WELCOMED A LARGER INCREASE IN OUR FORECAST RESERVES."

MR MACLEOD SAID THE MEDIUM RANGE FORECAST SHOWED THAT THE GOVERNMENT WAS PLANNING FOR DEFICITS IN EACH OF THE YEARS TO 1996/97. THIS SHOULD COME AS NO SURPRISE, AS HE HAD FORECAST SUCH A SITUATION IN LAST YEAR'S BUDGET. THESE DEFICITS WOULD PEAK IN 1994/95 AND THEN START TO DECLINE FROM 1995/96.

"THIS REFLECTS THE PATTERN OF CAPITAL SPENDING OVER THE FORECAST PERIOD, INCLUDING THE AIRPORT. PROVIDED THAT WE KEEP RECURRENT EXPENDITURE UNDER CONTROL, AS WE PLAN TO DO, WE WILL RETURN TO BALANCED BUDGETS ONCE THE AIRPORT CORE PROGRAMME HAS BEEN COMPLETED.

/’’REVENUE WIL!..........

WEDNESDAY, MARCH 3, 1993

- 30 -

’’REVENUE WILL OF COURSE INCREASE SUBSTANTIALLY IN 1997 WHEN THE FULL PROCEEDS FROM LAND SALES WILL BE RETAINED, TOGETHER WITH INTEREST ON THE LAND FUND.”

EXPLAINING WHY WE SHOULD BE PREPARED TO ACCEPT A SHORT PERIOD OF TEMPORARY DEFICITS, MR MACLEOD SAID IT WAS PLAINLY UNNECESSARY TO BUILD UP OUR RESERVES ABOVE THE LEVEL WHICH PRUDENT JUDGEMENT AND PAST EXPERIENCE JUSTIFY.

”OUR ROBUST ECONOMY AND THE SURGE IN GOVERNMENT REVENUES HAVE RAISED OUR RESERVES THIS YEAR WELL ABOVE THAT LEVEL.

“BUT IT IS SOMETIMES OVERLOOKED THAT THE ONLY WAY IN WHICH THE GOVERNMENT CAN TRANSFER RESOURCES FROM THE RESERVES IS BY RUNNING A DEFICIT.” MR MACLEOD SAID.

”IN OTHER WORDS, THE DEFICITS WHICH I AM PROJECTING AMOUNT TO NO MORE THAN A PRUDENT AND PROPER ADJUSTMENT OF OUR BALANCE SHEET TO PUT THE REDUNDANT PORTION OF OUR RESERVES TO CONSTRUCTIVE USE FOR THE MAXIMUM BENEFIT OF HONG KONG,” HE ADDED.

MR MACLEOD GAVE THE FOLLOWING REASSURANCES ABOUT THIS USE OF PART OF THE RESERVES TO FINANCE THESE TEMPORARY DEFICITS :

THE RESERVES RESULT FROM THE STRENGTH OF THE ECONOMY AND PUBLIC FINANCES, WHICH HAS CREATED A LARGER REVENUE FLOW THAN THE GOVERNMENT COULD COMFORTABLY SPEND IN THE LAST TWO YEARS.

* THE RESERVES WILL MAINLY BE USED FOR NON-RECURRENT PURPOSES AND CAPITAL PROJECTS. RECURRENT EXPENDITURE GROWTH WILL BE KEPT UNDER CONTROL.

SOME OF THESE ADDITIONAL SPENDING INITIATIVES WILL FURTHER ENHANCE THE INFRASTRUCTURE AND IMPROVE THE CAPACITY TO TAKE FULL ADVANTAGE OF INCREASING BUSINESS OPPORTUNITIES, PARTICULARLY OUR CHINA LINKS. THEY WILL REDUCE BOTTLENECKS AND THE COSTS OF DOING BUSINESS IN HONG KONG.

» THIS WILL THEREBY CONTRIBUTE TO THE LONG-TERM ABILITY TO FIGHT INFLATION. ANY SHORT-TERM PRESSURE ON PRICES WILL BE CONTROLLABLE BECAUSE THE IMPACT WILL FALL MAINLY ON THE CONSTRUCTION SECTOR, WHERE COSTS HAVE BEEN FALLING SIGNIFICANTLY.

* THESE SPENDING PLANS, INCLUDING INFRASTRUCTURE INVESTMENTS, ARE ENTIRELY CONSISTENT WITH THE WISH TO ENSURE THAT THE FUTURE SARG GETS OFF TO A SOUND START, WITH HEALTHY FISCAL RESERVES.

ON THE NEED FOR RESERVES, MR MACLEOD SAID THE GREATEST REASSURANCE OF ALL WAS PROVIDED BY THEIR HEALTHY STATE.

FORECASTING AN ACCUMULATED RESERVE BALANCE OF $78.4 BILLION FOR THE END OF 1996/97, HE NOTED THIS WAS SOME $6.8 BILLION HIGHER THAN THE FORECAST HE DESCRIBED AS APPROPRIATE LAST YEAR.

/’’THE INCREASE

WEDNESDAY, MARCH 3, 1993

- 31

’’THE INCREASE IS NOT LARGE, BEARING IN MIND ALSO THAT ANNUAL GOVERNMENT SPENDING WILL TOTAL AROUND $200 BILLION BY THAT DATE. I DO NOT THEREFORE REGARD RESERVES OF $78 BILLION AS EXCESSIVE,’’ HE SAID.

MR MACLEOD REITERATED THAT HE PLACED GREAT IMPORTANCE ON THE NEED TO RETAIN ADEQUATE RESERVES. THESE WERE NECESSARY NOT ONLY TO MAINTAIN A REASONABLE CUSHION AGAINST ANY CONTINGENCIES IN THE NEXT FEW YEARS BUT ALSO TO MEET THE COMMITMENT UNDER THE MEMORANDUM OF UNDERSTANDING.

HE SAID THE SORT OF CONTINGENCIES AGAINST WHICH THE RESERVES MUST INSURE, INCLUDED :

ABRUPT CHANGES IN WORLD POLITICAL AND ECONOMIC CONDITIONS TO WHICH HONG KONG WAS VULNERABLE BECAUSE OF ITS OPEN

ECONOMY AND TOTAL DEPENDENCE ON SELLING ITS GOODS AND SERVICES ABROAD.

* ALTHOUGH HONG KONG HAD VERY ROBUST GROWTH PROSPECTS FOR THE REST OF THE DECADE, THE GOVERNMENT CANNOT PREDICT OR CONTROL FUTURE EVENTS. NON-RENEWAL OF MFN STATUS FOR CHINA, FOR EXAMPLE, WOULD HAVE SERIOUS CONSEQUENCES.

* A SLOWDOWN IN THE ECONOMY WOULD REDUCE GOVERNMENT REVENUES, THUS THREATENING OUR ABILITY TO MAINTAIN GOVERNMENT SPENDING PROGRAMMES.

* HEALTHY RESERVES MEAN THAT A SUDDEN REVERSAL IN THE ECONOMIC FORTUNES WILL NOT CAUSE SHARP CUTS IN THE PROVISION OF SERVICES AND THE SUSPENSION OF VITAL INVESTMENT PROJECTS IN THE PUBLIC SECTOR.

-----0-------

LEGCO’S ADVICE A MAJOR INPUT

*****

MORE THAN EVER BEFORE, THE ADVICE AND CRITICISMS OF LEGISLATIVE COUNCILLORS HAVE BEEN A MAJOR INPUT INTO THE BUDGET, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

”1 WILL CONTINUE CONSULTATION WITH MEMBERS FOR FUTURE BUDGETS,” HE SAID IN SUMMING UP HIS 1993/94 BUDGET PRESENTATION IN THE COUNCIL LEGISLATIVE.

MR MACLEOD ALSO MADE THESE POINTS ABOUT HIS BUDGET:

* THE BUDGET HAS IDENTIFIED THE POTENTIAL FOR AN INCREASED ROLE FOR THE PRIVATE SECTOR IN EXPANDING THE GOVERNMENT’S ABILITY TO COMPLETE MAJOR PROJECTS ON TIME AND WITHIN BUDGET.

/* IT HAS ........

WEDNESDAY, MARCH 3, 1993

32

IT HAS IMPLEMENTED THE FIRST YEAR OF THE AMBITIOUS PROGRAMME ANNOUNCED BY THE GOVERNOR LAST YEAR. IN ADDITION, THE FINANCIAL SECRETARY HAS PRESENTED A PACKAGE OF ADDITIONAL NEW INITIATIVES WHICH WILL MAKE A MAJOR CONTRIBUTION TO IMPROVING PEOPLE’S LIVELIHOOD AND TO RAISING THE QUALITY OF LIFE IN AREAS RANGING FROM HEALTH TO ROAD CONGESTION, AS WELL AS IMPROVING THE ECONOMIC INFRASTRUCTURE.

* IT FINANCES THESE CONSIDERABLE ADVANCES WITHOUT ANY INCREASE IN TAXATION.

* IT WILL REDUCE DRAMATICALLY THE TAX BURDEN ON THE INDIVIDUAL TAXPAYER, PARTICULARLY FOR THE LOWER INCOME TAXPAYERS AND THE "SANDWICH CLASS". IT HAS ALSO BEEN POSSIBLE TO FURTHER SIMPLIFY THE TAX SYSTEM AND STEP UP OUR EFFORTS TO COMBAT TAX AVOIDANCE AND EVASION.

» IT HAS TAKEN ACCOUNT OF THE TRANSITION TO 1997 AND HONG KONG’S GROWING ECONOMIC LINKS WITH CHINA.

* THE BUDGET HAS BEEN DESIGNED TO MEET THE NEEDS OF THE COMMUNITY AS A WHOLE, WITH A REALISTIC BALANCE BETWEEN OUR NEED TO MAINTAIN A POSITIVE BUSINESS ENVIRONMENT AND OUR OBLIGATION TO THE DISADVANTAGED IN THE SOCIETY.

MR MACLEOD SAID OVERALL HE HAD MADE PROPOSALS WHICH, IN THE PERIOD TO 1996/97, WOULD :

* PUT $23 BILLION BACK INTO THE POCKETS OF TAXPAYERS,

* SPEND AN EXTRA $17 BILLION ON IMPROVING THE INFRASTRUCTURE AND THE SERVICES WHICH THE COMMUNITY NEEDS, AND

* LEAVE AN ESTIMATED ADDITIONAL $6.8 BILLION IN THE RESERVES IN 1996/97.

--------0------------

FS GIVES BUDGET SUMMARY ON TV ******

GOOD EVENING,

THIS AFTERNOON, I PRESENTED MY SECOND BUDGET TO LEGCO. IT CONTAINED A GREAT DEAL OF GOOD NEWS. I ANNOUNCED SUBSTANTIAL CUTS IN THE AVERAGE FAMILY’S TAX BILLS, AS WELL AS REDUCED TAXATION IN OTHER AREAS. I HAVE PROVIDED FOR MAJOR NEW IMPROVEMENTS IN OUR SOCIAL SERVICES, AS WELL AS MAJOR NEW INITIATIVES TO IMPROVE OUR QUALITY OF LIFE AND TO UPGRADE OUR INFRASTRUCTURE.

THIS CHEERFUL NEWS REFLECTS THE CONTINUED SUCCESS OF OUR ECONOMY. 1992 WAS VERY ENCOURAGING, WITH OVERALL ECONOMIC GROWTH OF 5% IN REAL TERMS. I BELIEVE WE SHALL DO EVEN BETTER IN 1993, WITH REAL ECONOMIC GROWTH RUNNING AT 5.5%. THIS IS AN IMPRESSIVE PERFORMANCE.

/WE CAN ........

WEDNESDAY, MARCH 3, 1993

33

WE CAN ALSO LOOK FORWARD TO IMPROVING BUSINESS CONDITIONS IN THE UNITED STATES, OUR BIGGEST EXPORT MARKET. EVEN MORE IMPORTANT IS THE DRAMATIC GROWTH OF THE CHINESE ECONOMY. THE EXCELLENT PROSPECTS OFFERED BY OUR TRADE AND INVESTMENT LINKS WITH CHINA ALLOW US TO FACE THE NEXT FEW YEARS WITH CONSIDERABLE CONFIDENCE IN OUR ABILITY TO IMPROVE HONG KONG’S PROSPERITY.

BUT WE WILL ALSO OF COURSE FACE SOME CHALLENGES THIS YEAR. AS EVER, WE WILL HAVE TO WORK VIGOROUSLY TO DEFEND THE PRINCIPLES OF FREE TRADE AND FAIR ACCESS ON WORLD MARKETS. AS PART OF THIS CAMPAIGN, WE WILL BE LOBBYING HARD IN WASHINGTON FOR THE UNCONDITIONAL RENEWAL OF MOST FAVOURED NATION STATUS (OR MFN) FOR CHINA’S EXPORTS.

THE OTHER MAJOR CHALLENGE IS INFLATION. CONSUMER PRICES WILL INCREASE BY AROUND 9.5%. THIS IS NOT A FIGURE WE CAN BE COMPLACENT ABOUT, THOUGH IT IS A SIGNIFICANT IMPROVEMENT OVER PREVIOUS YEARS. AND INFLATION, OF COURSE, IS THE PRICE WE HAVE HAD TO PAY FOR OUR SUSTAINED ECONOMIC GROWTH, AND THE FULL EMPLOYMENT WHICH ACCOMPANIES IT. I WILL CONTINUE TO DO ALL 1 CAN TO CURB SPECULATION IN HOUSING. AND TO KEEP FLAT PRICES FROM GOING BEYOND THE REACH OF THE GENERAL PUBLIC. THOUGH THERE IS OF COURSE A LIMIT TO OUR ABILITY TO INFLUENCE FLAT PRICES, THE RECENT SLIGHT DIP IN PRICES IS ENCOURAGING.

NONETHELESS, THE CONTINUED SUCCESS OF OUR ECONOMY HAS CREATED A VERY HEALTHY SITUATION FOR OUR PUBLIC FINANCES. FOR THE LAST FINANCIAL YEAR, WE HAD A SUBSTANTIAL BUDGET SURPLUS AND AMPLE RESERVES.

OBVIOUSLY, HONG KONG CAN AND SHOULD MAKE THE BEST USE OF THIS BUOYANT FINANCIAL POSITION TO IMPROVE THE LIVELIHOOD OF THE WHOLE COMMUNITY, ESPECIALLY ITS MOST VULNERABLE MEMBERS. AND TO INVEST IN THE MODERN INFRASTRUCTURE WE SHALL NEED TO MAINTAIN OUR ECONOMIC GROWTH WELL INTO THE FUTURE.

SETTING THE PRIORITIES FOR PUBLIC SPENDING INVOLVES MAKING CHOICES, OFTEN DIFFICULT CHOICES. SO, IN DRAWING UP THIS YEAR’S BUDGET, I HAVE WORKED IN PARTNERSHIP WITH ALL SECTORS OF THE COMMUNITY. I HAVE LISTENED CAREFULLY TO THE ADVICE I HAVE RECEIVED IN MY CONSULTATIONS WITH MEMBERS OF LEGCO, OTHER REPRESENTATIVE BODIES AND FROM A GREAT MANY TRADE, PROFESSIONAL AND WELFARE ASSOCIATIONS.

I HAVE PAID SPECIAL ATTENTION TO THE VIEWS OF THE COMMUNITY AND LEGCO ON PERSONAL TAXATION. LAST YEAR, I PROMISED TO SEE WHAT WE COULD DO FOR SALARIES TAXPAYERS. THIS AFTERNOON, I KEPT THIS PROMISE. I PUT FORWARD PROPOSALS TO BENEFIT ALMOST EVERYONE PAYING SALARIES TAX. FOR 250,000 EXISTING TAXPAYERS, MY PROPOSALS WILL MEAN THAT THEY WILL PAY NOTHING AT ALL IN FUTURE. FOR ANOTHER 1.2 MILLION, TAX BILLS WILL BE CONSIDERABLY REDUCED. FAMILIES FROM THE MIDDLE-INCOME GROUPS WILL PARTICULARLY BENEFIT, AS WELL AS THOSE ON LOWER INCOMES. NO ONE WILL PAY MORE TAX.

BUT I HAVE NOT CONFINED MYSELF TO SALARIES TAX. I HAVE ABOLISHED COSMETICS DUTY AND ENTERTAINMENTS TAX. I HAVE ALSO REDUCED THE STAMP DUTY ON STOCK TRANSFERS, AND ESTATE DUTY. I HAVE MADE THE TAX SYSTEM MORE USER-FRIENDLY. I HAVE, AT THE SAME TIME, TAKEN STEPS TO CLOSE LOOPHOLES WHICH ALLOW TAXES TO BE AVOIDED.

/THE TAX ........

WEDNESDAY, MARCH 3, 1993

- 34 -

THE TAX CUTS HAVE NOT AFFECTED OUR ABILITY TO FIND MORE MONEY FOR EXISTING PROGRAMMES, AND FOR NEW INITIATIVES AND CAPITAL INVESTMENTS.

LAST OCTOBER, THE GOVERNOR ANNOUNCED AN EXTENSIVE PACKAGE OF IMPROVEMENTS IN OUR EDUCATION AND TRAINING PROGRAMMES, OUR HEALTH AND HOSPITAL SERVICES AND OUR SOCIAL WELFARE SERVICES. WE WILL BE ABLE TO FINANCE ALL THESE TARGETS, AND MORE.

FOR EXAMPLE, I WAS ABLE TO ANNOUNCE TODAY NEW HELP FOR POORER PARENTS WHO PAY KINDERGARTEN FEES. I ALSO PROPOSED FASTER PROGRESS WITH THE SCHEME TO MEET THE HOUSING NEEDS OF THE SANDWICH CLASS, AND A NEW HOUSING DEAL FOR STAFF IN GOVERNMENT-SUBVENTED SCHOOLS AND WELFARE ORGANISATIONS.

BUT I BELIEVE WE CAN AND SHOULD DO MORE. OUR ECONOMIC STRENGTH AND OUR PAST BUDGET SURPLUSES MAKE IT POSSIBLE FOR ME TO TACKLE NEW PROJECTS IN 10 AREAS WHICH WILL CONTRIBUTE SUBSTANTIALLY TO OUR SOCIAL AND ECONOMIC WELLBEING. THESE NEW PROJECTS INCLUDE A MAJOR NEW HOSPITAL FOR NORTH DISTRICT, HELP FOR HAEMOPHILIACS WHO HAVE CONTRACTED AIDS AND FOR THOSE WITH WORK-RELATED ILLNESSES. THE TRANSPORT SYSTEM IN THE NORTH-WESTERN NEW TERRITORIES WILL BE TRANSFORMED. WE WILL BE ABLE TO RELIEVE CHRONIC ROAD CONGESTION AND IMPROVE THE TRAFFIC FLOW ACROSS THE BORDER WITH GUANGDONG PROVINCE.

ALL IN ALL, I HAVE TRIED TO MAKE MY BUDGET REFLECT THE ASPIRATIONS OF THE COMMUNITY AND RESPOND TO THE NEEDS OF THOSE MOST IN NEED. IT IS A BUDGET WHICH BUILDS ON OUR PAST ECONOMIC SUCCESS AND RESPECTS THE RIGHT OF INDIVIDUALS AND THEIR FAMILIES TO ENJOY THE BENEFITS OF THAT SUCCESS. AFTER ALL, IT IS YOUR SUCCESS AND YOUR MONEY. BUILDING ON THIS SOLID FOUNDATION, THE BUDGET LOOKS TO THE FUTURE AND TO HOW BEST TO ENSURE HONG KONG TAKES THE FULLEST ADVANTAGE OF ITS OPPORTUNITIES.

GOOD NIGHT.

--------0-----------

TRANSCRIPT OF PRESS CONFERENCE BY FINANCIAL SECRETARY, MR HAMISH MACLEOD, ON HIS BUDGET

*****

HELLO, MYSELF THINGS.

WELL HAVING JUST HAD, I THINK AN HOUR AND 25 MINUTES HOARSE, I’LL KEEP INTRODUCTORY MARKS VERY SHORT, BUT

SPEAKING

A FEW

FIRST WE’VE MADE A PARTICULAR, EVEN MORE COMMUNICATE, HENCE IN PARTICULAR THE LEAFLET. COPYRIGHT AS MUCH AS YOU LIKE.

EFFORT THIS YEAR TO PLEASE OFFEND AGAINST

/SECONDLY, I ........

WEDNESDAY, MARCH 3, 1993

35

SECONDLY, I THINK IT’S TRUE WHAT I SAID IN THE BUDGET SPEECH, AND I MEAN IT, THAT THE DEGREE OF CONSULTATION WITH LEGCO MEMBERS GOES WAY BEYOND ANYTHING WE’VE EVER TRIED BEFORE. I THINK THE RESULT FROM MY POINT OF VIEW AND I HOPE FROM LEGCO MEMBERS’ POINT OF VIEW SHOWS IT’S BEEN VERY WELL WORTH IT AND I WILL CONTINUE DOWN THAT PATH IN THE FUTURE YEARS.

THIRDLY, IT IS A VERY OPTIMISTIC, GOOD BUDGET IN THE SENSE THAT IT HAS A LOT OF GOOD NEWS IN IT AND I THINK THAT IS REALISTIC. WE DID MENTION A FEW CHALLENGES WHICH LIE AHEAD, FRANKLY CHALLENGES WILL ALWAYS LIE AHEAD, LIFE ALWAYS HAS RISKS TO IT BUT THE BALANCE OF PROBABILITIES FOR OUR FUTURE IN THE NEXT FEW YEARS LOOKS EXTREMELY GOOD AND I THINK THAT’S WORTH REPEATING.

APART FROM THAT, THE OTHER THING I THINK THAT’S WORTH EMPHASISING IS THE THEME THAT I’D MENTIONED, WE REALLY ARE LOOKING TOWARDS 1997, QUITE A LOT OF WHAT WE ARE DOING IS LAYING THE GROUNDWORK FOR MUCH BETTER ECONOMIC LINKS WITH SOUTHERN CHINA. AGAIN, THAT SEEMS TO ME ONLY REALISTIC AND SENSIBLE. THAT'S WHERE OUR MAIN GROWTH IS NOW COMING FROM. I’LL STOP THERE, AND READY FOR QUESTIONS.

QUESTION:

(INAUDIBLE) ...THE LIMIT ON BANK MORTGAGE. CAN YOU TELL US WHAT CRITERIA WOULD YOU ADOPT IN JUDGING WHEN THE TIME DOES COME TO EASE OF LIMIT AND WHETHER THAT WILL OCCUR IN THE NEAR FUTURE.

FS:

WELL, I KNOW THERE’S A LOT OF INTEREST IN THAT, PARTLY FROM CONSUMERS AND PARTLY OF COURSE FROM PROPERTY DEVELOPERS, WHO MAY HAVE SLIGHTLY DIFFERENT INTERESTS. WE DON’T HAVE A NICE EASY FORMULA FOR JUDGING THIS, IT’S NOT AN EASY THING TO JUDGE, BUT CERTAINLY WF. LOOK AT STATISTICS EVERY MONTH BOTH THE SELLING PRICE STATISTICS, THE VOLUME OF TRANSACTION STATISTICS AND OF COURSE THE BANKING COMMISSIONER LOOKS AT OTHER FIGURES WHICH ARE HIS PARTICULAR CONCERN IN RELATION TO BANKS EXPOSURE TO PROPERTY BORROWING AND OUT OF THAT ARISES A DECISION, AND ALL I WAS ABLE TO SAY WAS, FIRSTLY THAT I AM STILL NOT CONVINCED THAT WE’VE ARRIVED AT A STAGE WHERE WE SHOULD BE RELAXING OR STIMULATING THE MARKET. AND, SECONDLY IF YOU LOOK AT THE REDUCTION IN PRICES WHICH HAS BEEN MUCH TALKED ABOUT, THE REDUCTION TN PRICES IS ACTUALLY QUITE SMALL AND IF YOU LOOK AT A PERIOD OF A COUPLE OF YEARS OR SO, WE’RE STILL VERY, VERY HIGH IN RELATION TO WHERE WE WERE IN JANUARY 91 OR TN RELATION TO ABILITY OF PEOPLE TO PAY. I SUSPECT WE’RE IN QUITE A FUNNY SITUATION AT THE MOMENT ON PROPERTY PRICES THAT THERE’S A LOT OF WAIT AND SEE AND WE’RE NOT REALLY SEEING THE REAL PRICES EMERGING FROM THIS GAME, NOT GAME BUT EXERCISE OF TRYING TO GET A FEEL FOR WHERE THE DEMAND IS GOING TO PUT THE PRICES IN THE LONGER TERM. SO, I HAVEN’T ANSWERED YOUR QUESTION BECAUSE IT’S NOT ANSWERABLE, BUT I DON’T SEE A VERY EARLY RELAXATION BUT I’M NOT SIGNALLING THAT THERE NEVER WILL BE ONE, THAT WOULD BE STUPID.

QUESTION:

ARE YOU NOT, YOU KNOW PEOPLE RECEIVING IN ONE HANI), ARE YOU SURE IT'S NOT GOING TO GO OUT THE OTHER GIVEN THE FACT THAT WE’RE NOW TALKING ABOUT 12 TO 13 PER CENT INFLATION DUE TO YOUR EXTRA SPENDING AND TAX REDUCTIONS?

/FS: .........

WEDNESDAY, MARCH 3, 1993

- 36 -

FS:

WELL I THINK HARDLY ANYONE’S TALKING ABOUT 12 TO 13 PER CENT INFLATION, I HOPE THEY’RE NOT. WHAT WE’RE TALKING ABOUT IS INFLATION OF AROUND 9.5 PER CENT THIS YEAR. REMEMBER THIS, THAT THE PARTICULAR EXPANSION OF SPENDING WHICH I WAS TALKING ABOUT IN THOSE EXPENDITURE PROPOSALS WAS NEARLY ALL NON-RECURRENT AND MANY OF THEM ARE SPREAD OVER A PERIOD OF YEARS ALTHOUGH THE MONEY MAY GO OUT OF MY PARTICULAR ACCOUNTS IN ONE YEAR, IT WILL ONLY GET INTO THE ECONOMY OVER A PERIOD OF YEARS AND THAT’S INTO A CONSTRUCTION INDUSTRY WHICH IS PRESENTLY UNDERUSED. TENDER PRICES ARE EXTREMELY GOOD AT THE MOMENT, CONTRACTORS ARE CRYING OUT FOR MORE PROJECTS. SO WE HAPPEN TO BE EXTREMELY FORTUNATE THAT WE CAN PLOUGH A BIT MORE MONEY INTO CAPITAL PROJECTS WITHOUT, I THINK WITHOUT TOO MUCH INFLATIONARY EFFECT. WE’RE ALSO LUCKY OF COURSE, AS WE’VE SAID, IT’S NOT SOMETHING I’VE INVENTED, FOR MANY YEARS, WE’RE LUCKY THAT THE EFFECT OF GOVERNMENT EXPENDITURE IS NOT ALL THAT GREAT ON THE ECONOMY. I MEAN WE’VE DELIBERATELY KEPT THIS AS A SMALL PART OF GDP, UNDER 20 PER CENT OF GDP. WHEREAS SOMEWHERE LIKE UK WOULD BE ABOUT 45 PER CENT OF GDP, SO THE ECONOMIC EFFECTS OF OUR SPENDING DECISIONS ARE FAR LESS THAN IN THE CLASSIC DEVELOPED ECONOMY. FORTUNATELY FOR ME, IT’S ALSO EXTREMELY OPEN SO THAT EFFECTS OF ANY ADDITIONAL SPENDING, LET’S SAY THE SPENDING WHICH MIGHT RESULT FROM THE TAX CONCESSIONS, SOME OF THAT WILL BE SAVED, SOME OF IT WILL BE SPENT, WILL PARTLY FIND ITS WAY VERY QUICKLY INTO IMPORTS WHICH IS NOT IN ITSELF INFLATIONARY.

QUESTION:

MR MCLEOD, LAST YEAR YOU HAD A BENEFIT THAT YOU WANTED TO PASS ON TO THE CINEMA INDUSTRY AND THE CINEMA INDUSTRY FAILED TO PASS THAT BENEFIT ON TO THE PEOPLE AND YOU WERE ASKED A QUESTION ABOUT THIS IN LEGCO AND YOU SAID IN AN EVERY SO SLIGHTLY THREATENING MANNER, WELL THERE’S ALWAYS NEXT YEAR’S BUDGET. NOW NEXT YEAR’S BUDGET HAS COME, BUT YOU HAVEN’T GOT THE CINEMA INDUSTRY AT ALL. ARE YOU FEELING SO BENEVOLENT THAT YOU’RE GOING TO LET THEM OFF WITH THIS ONE?

FS:

WELL, IT’S ACTUALLY QUITE DIFFICULT TO KNOW EXACTLY WHAT RESULT YOU EXPECT FROM A TAX CONCESSION. SOME WOULD ARGUE AND I THINK THE CINEMA INDUSTRY WOULD PROBABLY ARGUE THAT NOT TO INCREASE CHARGES AT A TIME OF I MUST ADMIT, FAIRLY HIGH INFLATION, IS A BENEFIT IN ITSELF. IT SO HAPPENS WITH THE COSMETICS INDUSTRY THAT THEY HAVE BEEN I THINK FAR SIGHTED ENOUGH TO ACTUALLY AGREE TO REDUCE PRICES AND I THINK THAT WILL BE HELPFUL, IN A MODEST WAY, BUT IT WILL BE HELPFUL. I THINK ALSO AT THE TIME ON THE CINEMAS THERE WAS AN ATTEMPT TO MAKE OUT THAT THERE’D BEEN NO EFFECT AT ALL. I DON’T THINK THAT WAS TRUE. I THINK THE CINEMA OPERATORS BY AND LARGE, DID THEIR BEST TO PASS ON THE BENEFITS, SO NO I DON’T THINK THERE’S A SITUATION WHERE I HAVE TO, AS IT WERE, PUNISH CINEMA OPERATORS AND I’M ALL FOR SIMPLIFYING THE TAX SYSTEM.

QUESTION:

MR MACLEOD, HOW DO YOU SUPPOSE CHINA WILL REACT TO ALL THESE BIG HANDOUTS THIS YEAR AND A DEFICIT BUDGET AS WELL?

WEDNESDAY, MARCH 3, 1993

37

FS:

WELL, OF COURSE THIS IS 1993 AND WE ARE OF COURSE AUTONOMOUS IN OUR FINANCES WHETHER FROM UK OR CHINA BUT NO DOUBT THEY WILL LOOK WITH INTEREST AT THE FORECASTS FOR 96/97 AND I HOPE THEY WILL FIND SOME COMFORT IN THE FACT THAT THE FIGURE OF RESERVES HAS GONE UP FROM ROUGHLY 71 BILLION IN MY LAST YEAR’S FORECAST TO ROUGHLY 78 BILLION IN THIS YEAR’S FORECAST. IF THAT’S NOT COMFORTING I WOULD BE SURPRISED.

QUESTION:

THEY SAY IT’S A VIOLATION OF THEIR PRINCIPLES OF THE BASIC LAW TO HAVE A DEFICIT?

FS:

WELL, I’M NOT GOING TO ENTER INTO, I’VE HAD SOME SUCH DISCUSSIONS IN THE PAST, THEOLOGICAL DISCUSSIONS ABOUT THE BASIC LAW WHICH OF COURSE DOESN’T COME INTO EFFECT UNTIL 1997. BUT AS I DID SAY IN THE BUDGET, PERHAPS TO REASSURE ANYONE WHO HAS THAT SORT OF WORRY, I AM QUITE CONFIDENT THAT IN 1997 THEY WILL BE ABLE TO HAVE BALANCED BUDGETS, NO PROBLEM.

QUESTION:

(INAUDIBLE) AND NEEDS COMFORTING, WHICH IS WHAT YOU MEANT?

FS:

IT’S NOT FOR ME TO SAY WHETHER THEY NEED COMFORTING.

QUESTION:

OF COURSE AN IMPORTANT PART OF YOUR BUDGET IS THE MEDIUM RANGE FORECAST WHICH LOOKS FORWARD FIVE YEARS. THIS YEAR THAT HAS TAKEN YOU TO 1996/97, NEXT YEAR YOU HAVE PERHAPS THE DIFFICULTY OF YOUR TALKING ABOUT THE FINANCIAL YEAR 97/98, WILL YOU BE CONSULTING BEJING AT ALL IN THE NEXT 12 MONTHS OVER THE DIRECTION YOU’LL BE TAKING THE RESERVES AND YOUR SPENDING PROPOSALS BEYOND THE JULY HANDOVER IN 1997?

FS:

WELL, AS YOU SAY I’VE BEEN FORTUNATE ENOUGH THIS YEAR I DON’T ACTUALLY HAVE TO WORRY ABOUT THAT PARTICULAR PROBLEM. I’LL BE GIVING IT SOME THOUGHT WHEN I’VE GOT THIS BUDGET OUT OF THE WAY BUT YOU’RE RIGHT THAT IF WE PROCEED ON OUR NORMAL TIME SCALE, THEN NEXT YEAR’S MRF WOULD INDEED GO INTO 97/98.

/QUESTION: ........

WEDNESDAY, MARCH 3, 1993

38

QUESTION:

I WOULD LIKE TO REFER YOU TO THE MEDIUM RANGE FORECAST BOTH THIS YEAR AND LAST YEAR REGARDING THE EXPENDITURE OF THE CAPITAL WORKS (INAUDIBLE). I FIND THAT THIS YEAR WE ARE UNDERSPENDING IN THE CAPITAL WORKS PROJECT BY NEARLY 8 BILLION DOLLARS, IS THAT RIGHT? BUT WHEN THE (INAUDIBLE) IN THE MEDIUM RANGE FORECAST, THE FORECAST THIS YEAR, OR RELATING TO THE EXPENDITURE OF CAPITAL WORKS IS EVEN SMALLER THAN THAT MADE LAST YEAR. SO DOES IT MEAN THAT MORE CAPITAL WORKS PROJECTS WILL BE DELAYED AND WHAT KIND OF PROJECTS ARE THESE BEING DELAYED?

FS:

NO. WHAT 1 THINK IF WE CAN AVOID LOOKING AT ALL THE FIGURES BECAUSE THERE ARE DIFFERENT WAYS OF DEFINING THEM, BUT IF YOU LOOK IN ONE OF THE APPENDICES TO THE BUDGET SPEECH, YOU’LL FIND QUITE A GOOD CHART WHICH COMPARES CAPITAL WORKS SPENDING AGAINST THE GUIDELINE AND IF YOU LOOK AT THAT YOU’LL FIND THAT WE FORECASTING THAT CAPITAL WORKS SPENDING IN 93/94 WILL BE MORE OR LESS IN LINE WITH THE GUIDELINE. I’M AVOIDING YOUR QUESTION SLIGHTLY BECAUSE THE TROUBLE IS, IF YOU START TALKING ABOUT ANY OTHER COMPARISONS THEN YOU GET INTO THE BOG OF WHETHER TO COMPARE NEXT YEAR’S ESTIMATE WITH LAST YEAR’S ESTIMATE OR LAST YEAR’S REVISED ESTIMATE WHICH IS THE ACTUAL EXPENDITURE. BUT THE FACT IS THAT WE DID UNDERSPEND THIS YEAR, THE YEAR THAT’S JUST ENDING AND THAT WE ARE TRYING TO RECOVER SOME OF THAT IN THE COMING YEAR BUT IT WON’T BE EASY.

QUESTION: I UNDERSTAND THAT YOU HAVE SEEN A LOT RATIONALE, THAT’S WHY WE PUT UP OUR DEFICIT BUDGET THIS YEAR. SO CAN YOU EXPLAIN TO THE PUBLIC WHY IT IS THE RIGHT TIME THAT YOU PUT FORWARD A DEFICIT BUDGET? AND AS USUAL WE ALWAYS GET UNEXPECTED INCOME, SO WILL IT BE AT THE END WE WILL COME UP WITH A SURPLUS AGAIN?

FS: WELL, THE HONEST ANSWER TO THE LAST BIT IS, WE COULD, BECAUSE IT IS A VERY SMALL DEFICIT, 1 MEAN IT IS WELL WITHIN ANY NORMAL BOUNDS OF FALLLIBILITY. THE FIGURES HAPPEN TO COME TO A DEFICIT, OF COURSE IF REVENUE COMES OUT BETTER - A LOT DEPENDS ON THE REVENUE, SOMETHING ALSO DEPENDS ON THE PUBLIC WORKS, SO I CAN’T RULE IT OUT - BUT OUR HONEST FORECAST AT THE MOMENT IS A VERY SMALL DEFICIT.

THE FIRST PART OF YOUR QUESTION WAS: WHY DEFICIT THIS YEAR? ACTUALLY, WE HAVE BEEN FORECASTING DEFICITS FOR SOME TIME. I MEAN IF I COULD JUST GET THIS SIMPLE POINT ACROSS BECAUSE I GET CONFLICTING ARGUMENTS ON THIS. THE ONLY WAY YOU CAN USE THE RESERVES UP IS TO RUN A DEFICIT, THAT IS A SORT OF MATHEMATICAL FACT. SO THOSE PEOPLE WHO THINK THE RESERVES ARE TOO HIGH, WHICH WOULD INCLUDE ME AT THE MOMENT, I MEAN WE DON’T NEED 120 BILLION, THE ONLY WAY YOU CAN DRAW ON THE RESERVES, UNDER OUR SYSTEM, IS BY RUNNING A DEFICIT. THAT’S ALL THE DEFICIT IS, IT’S A WAY OF DRAWING ON THE RESERVES. YOU DON’T NEED TO GET WORRIED ABOUT A DEFICIT, UNLESS IT IS BEING CAUSED BY RECURRENT EXPENDITURE GOING OVER THE LIMITS, AND I HAVE MADE VERY SURE THAT THAT IS NOT THE CASE. YOU WILL FIND, IF YOU LOOK AT THE FIGURES, RECURRENT EXPENDITURE IS FORECAST TO GROW BY 5.2% FOR 93-94. IT IS THE CAPITAL, IT IS THE NON-RECURRENT WHICH IS OVER THAT, AND PART OF THAT IS AN ATTEMPT TO MAKE UP FOR THE TIME LOST THIS YEAR AND LAST YEAR.

/QUESTION: ........

WEDNESDAY, MARCH 3, 1993

39 -

QUESTION: JUST TO FOLLOW UP. BY BUDGETING FOR A DEFICIT, DO YOU SAID THAT, IS IT YOUR INTENTION TO ACHIEVE THE EFFECT THAT YOU CAN ACTUALLY CLOSE THE DOOR FOR LEGCO MEMBERS TO ASK FOR FURTHER TAXCONCESSIONS AND FURTHER SPENDING ON OTHER, SAY, ITEMS THAT YOU HAVE NOT INCLUDED IN YOUR BUDGET SPEECH? BECAUSE NORMALLY, YOU WILL END UP WITH A BIGGER THAN EXCESSIVE SURPLUS, SO BY HAVING A CONSERVATIVE ESTIMATE, THIS IS THE WAY YOU DEAL WITH IT.

FS: THE DEFICIT IS SIMPLY A MATHEMATICAL RESULT OF THE EXPENDITURE AND REVENUE FIGURES, YOU KNOW, THAT IS THE OUTCOME. AND AS I SAY, IF YOU LOOK TO THE OTHER YEARS, TOO, YOU WILL SEE A DEFICIT THERE. OTHERWISE, IF WE WERE GOING TO GO FOR BALANCED BUDGETS ALL THE WAY UP TO 96-97, THEN OF COURSE THE RESERVES WOULD NOT BE 78 BILLION - OFF THE TOP OF THE HEAD, I GUESS THEY WOULD BE ABOUT 140 BILLION - AND I DON’T THINK ANYONE HERE WOULD ARGUE THAT THEY SHOULD BE 140 BILLTON OR THEREABOUTS.

QUESTION: ARE YOU GOING TO SAY, NOW THAT IT’S SETTLED

NOW, NO MORE, SAY, TAX-CONCESSIONS WOULD BE GIVEN, SAY, GIVEN THE EXPERIENCE IN THE LAST YEAR THAT THEY WOULD NOT SUPPORT YOU TO RAISE THE RATES RAISE AND THEN OR ARE THERE POSSIBLE DEMANDS FROM LEGCO WOULD NOT BE ENTERTAINED?

FS: I AM GOING TO TRY AND BE VERY CAREFUL THIS YEAR

NOT TO SAY WHAT I AM GOING TO DO NEXT YEAR; LET’S KEEP THAT FOR A LATER DECISION. WE HAVE TO LOOK AT THE SITUATION EVERY YEAR, AND IF NEXT YEAR WE FIND WE ARE BETTER-OFF, THEN THERE’S ONE ANSWER. IF WE FIND WE ARE WORSE-OFF THAN WE EXPECTED, THEN THERE IS ANOTHER ANSWER. I AM NOT GOING TO TRY ANT) GUESS.

QUESTION: THE SITUATION THOUGH IS, IT VERY MUCH DEPENDS

ON THE DEBATE IN THE NEXT COUPLE OF MONTHS AND WHETHER THEY AGREE THE SORT OF TAX-CONCESSIONS OFFERED BY YOU IN TERMS OF PERSONAL ALLOWANCES, AND WHETHER THEY FIND THAT SATISFACTORY, IS STILL A QUESTION TO BE DEBATED —

FS: OF COURSE, ABSOLUTELY, THERE IS STILL A DEBATE,

THERE IS STILL THE FINANCE COMMITTEE SPECIAL MEETINGS ON EXPENDITURE AND SO ON, BUT I THINK THE FIRST REACTION HAS BEEN QUITE GOOD.

QUESTION: MR MACLEOD, IF YOU SAY 140 BILLION RESERVES IS

TOO MUCH —

FS: THAT’S OFF THE TOP OF MY HEAD, I MEAN I AM JUST

THINKING 120 - RUNNING THROUGH MY HEAD THE DEFICITS AND ADDING THEM BACK - SO IT MAY BE A BIT MORE THAN THAT.

QUESTION: BUT WHAT, BASICALLY, ARE YOUR CRITERIA IN

ASSESSING WHICH SORT OF LEVEL OF RESERVES WOULD YOU FIND IT AS A KIND OF APPROPRIATE LEVEL OF RESERVES?

FS: LAST YEAR, I SAID I WAS PERFECTLY CONTENT WITH

THE FIGURE AT THAT TIME, FOR WHICH THE FORECAST WAS 71 BILLION, FOR 96-97 - IT HAPPENS TO HAVE GONE UP A LITTLE BIT - BUT YOU KNOW AROUND THAT LEVEL 1 THINK IT IS REASONABLE IN PRESENT CIRCUMSTANCES. I CAREFULLY AVOIDED PRODUCING SOME WONDERFUL FORMULA WHICH WOULD PRODUCE THE ANSWER I WANTED BECAUSE THE FACT IS YOU HAVE TO MAKE A JUDGMENT AT THE TIME IN THE LIGHT OF THE RISKS WHICH FACE YOU. THAT WAS MY

JUDMENT.

/QUESTION: ........

WEDNESDAY, MARCH 3, 1993

40

QUESTION: WOULD THAT AMOUNT LEAD TO ONE-THIRD OF THE CAPITAL EXPENDITURE BY 1996-97 - SO HOW COME YOU GOT TO THE CONCLUSION THAT IT IS ABOUT RIGHT?

FS: IF YOU LOOK AT PAST SURPLUSES OR PAST RESERVES,

THEY DON’T ACTUALLY GIVE YOU THE ANSWER TO THE QUESTION. WHAT I ACTUALLY DO IS, I TOT-UP THINGS WHICH MIGHT HAPPEN WHICH WOULD ADVERSELY AFFECT REVENUE OR EXPENDITURE, AND THEN YOU JUST HAVE TO MAKE A JUDGMENT AS TO HOW MUCH OF THAT YOU WANT TO KEEP IN YOUR RESERVES. IT IS GOING TO GO UP AND DOWN.

QUESTION: WHAT ARE THE KIND OF EVENTS THAT YOU’VE GOT IN

MIND?

FS: MFN, THE PROBLEM ON MFN, LOWER GROWTH, FOR

OTHER REASONS, WOULD BE THE OBVIOUS ONES.

QUESTION: WOULD THE CHINESE GOVERNMENT BE MORE HAPPY IF

YOU LEAVE MORE MONEY?

FS: I HAVE NO IDEA, 1 FIND IT QUITE DIFFICULT TO

ANSWER THAT QUESTION. PERHAPS YOU SHOULD ASK THE CHINESE GOVERNMENT.

QUESTION: MR MACLEOD, FINANCIAL SECRETARIES IN HONG KONG

HAVE A REPUTATION FOR UNDER-FORECASTING THEIR BUDGET SURPLUS --

FS: CORRECT.

QUESTION: -- IS THERE A DELIBERATE POLICY FOR

CONSERVATISM OR ARE YOU GUYS JUST VERY BAD AT FORECASTING?

FS: WELL YOU KNOW, IT IS TRUE, IF YOU LOOK BACK WE TEND TO UNDERESTIMATE REVENUE - AND PROBABLY OVERESTIMATE EXPENDITURE THOUGH IT DOESN’T ALWAYS HAPPEN. IT DEPENDS WHETHER YOU ARE IN AN UP-SWING OF THE ECONOMY OR A DOWN-SWING. BUT I THINK IT IS TRUE OUR NATURE IS, PARTICULARLY ON REVENUE, TO BE A LITTLE CONSERVATIVE. IF YOU TOOK, SAY, PROPERTY REVENUE - ACTUALLY, I DEFY ANY OF YOU TO GET IT RIGHT FOR NEXT YEAR; OR STAMP-DUTY, I DEFY ANY OF YOU TO GET IT RIGHT - SO GIVEN THAT, ONE TENDS TO BE A LITTLE CONSERVATIVE.

QUESTION: ACTUALLY, IT IS KIND OF THE SAME QUESTION. I JUST WANTED TO ASK, SO WHAT DO YOU PLAN TO DO TO REDUCE THE MARGIN OF ERROR? ARE YOU GOING TO BUY MORE COMPUTERS, BUY MORE CALCULATORS, ARE YOU GOING TO FIRE A FEW PEOPLE?

FS; IT HAS NOTHING TO DO WITH CALCULATION - I'M SORRY - BECAUSE IT WOULD BE VERY EASY TO SOLVE IF IT WAS. ON THE PUBLIC WORKS SIDE, YES, YOUR ANSWER IS CLOSE TO PART OF THE ANSWER OF YOUR QUESTION, I THINK THAT ONE THING WE HAVE DISCOVERED IS THAT THEY NEED A VERY MUCH BETTER INFORMATION SYSTEM, SO THAT THEY CAN REACT TO UNDER-SPENDING MUCH MORE QUICKLY, AND DEAL WITH IT. BUT THERE IS A LOT MORE, WHICH IS IN THE SPEECH, TO TRY AND DEAL WITH THE EXPENDITURE SIDE. ON THE REVENUE SIDE, I DON’T THINK ANYONE, A YEAR AGO, COULD HAVE FORECAST WHAT THE TURNOVER IN THE STOCK MARKET WAS GOING TO BE, FOR EXAMPLE. OE’ COURSE IT IS NOT THE LEVEL OF THE STOCK MARKET THAT MATTERS BUT THE TURNOVER. SO THAT IS QUITE DIFFICULT.

/QUESTION: ........

WEDNESDAY, MARCH 3, .1993

41

QUESTION: HOW LONG WILL IT BE BEFORE THE COMPUTER SYSTEM IS UP AND RUNNING AND ABLE TO TACKLE THESE PROBLEMS?

FS: I THINK, TOMORROW, WE WILL HAVE THE SECRETARY FOR WORKS WITH US - AM I RIGHT? YES, AT THE PRESS CONFERENCE TOMORROW AFTERNOON WE WILL HAVE THE SECRETARY FOR WORKS WHO, HOPEFULLY, WILL ANSWER YOUR QUESTION.

QUESTION: THERE IS A STRIKING JUMP IN SPENDING ON ENVIRONMENTAL PROTECTION, AND I WAS WONDERING IF THAT WAS A REFLECTION ON WEAK SPENDING FOR ENVIRONMENTAL PROTECTION IN THE PAST?

FS: YES, PARTLY IS. YOU WILL NOTICE THERE IS A VERY NICE CHART, WHICH THE WIDTH OF THE COLUMN DEPENDS ON THE SORT OF STARTING POINT, AND THE ONE FOR ENVIRONMENTAL PROTECTION GOES UP A LOT, BUT IT IS A VERY THIN COLUMN. SO, YES, IT IS RECOVERING FROM A LOW LEVEL, SO THE PERCENTAGE INCREASES ARE ENORMOUS.

QUESTION: DO YOU THINK IT IS A GOOD CHANCE TODAY TO EXPLAIN THE ADDITIONAL COMMITMENT IN THE CIF AND THE MISCELLANEOUS SERVICES OF GRA, THAT IS, RESPECTIVELY, 7.5 BILLION AND 7.3 BILLION?

FS: YES, I COULD ATTEMPT THAT. OF COURSE, BASICALLY THE ANSWER LIES IN THE LIST OF CAPITAL SPENDING PROPOSALS.

BUT THE 7.5 IN THE CIF IS, ROUGHLY SPEAKING, TWO THINGS. IT IS THE EXTRA AMOUNT INTO THE SEWAGE TRADING FUND TO 1.9, AND THEN IT IS THE TWO ITEMS OF EXPENDITURE IN RELATION TO THE CONVENTION EXHIBITION CENTRE, WHICH TOTAL 5.5. THESE ARE ONE OR TWO OTHER MINOR THINGS, BUT BASICALLY THAT IS THE 7.5. AND THEN IN GENERAL REVENUE ADDITIONAL COMMITMENTS, YOU WILL FIND A WHOLE HOST OF THE OTHER ITEMS WHICH I MENTIONED, INCLUDING, I BELIEVE, SANDWICH CLASS HOUSING, THE TOURIST ASSOCIATION OFFICES, THE HIV CASES, THE HOSPITAL AUTHORITY GRANT, THE SPORTS AND PERFORMING ARTS GRANT, NEW TECHNOLOGY TRAINING SCHEME, ALL THOSE ITEMS, THAT IS WHERE THEY ARE, ADDITIONAL COMMITMENTS GENERAL REVENUE ACCOUNT.

QUESTION:

IS IT, FROM THE HEAD, THAT THE SUBHEAD IS 106

MISCELLANEOUS SERVICES?

FS: HEAD.

I DON’T, UNFORTUNATELY, CARRY A NUMBER IN MY

QUESTION:

MOUNTS TO —

I HEARD THAT THE ADDITIONAL COMMITMENT, IT’S

FS:

K.Y. YEUNG IS NODDING, I THINK.

QUESTION:

-- IT’S ALL FROM THAT?

FS:

WE CAN GIVE YOU A LIST IF YOU LIKE, I’M SURE.

/42 ........

WEDNESDAY, MARCH 3, 1993

42

LABOUR CHIEF WELCOMES MORE FUND TO PROTECT WORKERS * * * * *

IN RESPONSE TO PRESS ENQUIRIES, THE COMMISSIONER FOR LABOUR, MRS KATHERINE FOK, TODAY (WEDNESDAY) WELCOMED PROPOSALS BY THE FINANCIAL SECRETARY TO PROVIDE A TOTAL OF $110 MILLION FOR TWO PROPOSED SCHEMES SEEKING TO OFFER IMPROVED PROTECTION TO EMPLOYEES IN THE TERRITORY.

"THE PROPOSED $100 MILLION GRANT TO SET UP AN EX-GRATIA PAYMENT SCHEME FOR PNEUMOCONIOTICS OF PRE-1981 CASES WILL NO DOUBT PROVIDE ADDITIONAL BENEFITS FOR THESE WORKERS BY WAY OF A PERIODICAL EX-GRATIA PAYMENT UNTIL DEATH," MRS FOK SAID.

"PREVIOUSLY, THESE WORKERS RECEIVED AN ONE-OFF EX-GRATIA PAYMENT FROM THE GOVERNMENT," SHE ADDED.

SHE SAID THE PNEUMOCONIOSIS COMPENSATION FUND BOARD WOULD BE INVITED TO ADMINISTER THE PROPOSED SCHEME.

ON A PROPOSAL BY THE FINANCIAL SECRETARY TO CREATE A NEW FUND AMOUNTING TO $10 MILLION TO PROVIDE INTEREST-FREE LOANS TO EMPLOYEES INJURED AT WORK AND DEPENDANTS OF EMPLOYEES WHO DIE AS A RESULT OF WORK-RELATED ACCIDENTS, THE COMMISSIONER SAID THE LABOUR DEPARTMENT, UNDER A PROPOSED LOAN SCHEME, WOULD BE RESPONSIBLE FOR EFFECTING PAYMENT OF LOANS.

"THE PROBLEM CONFRONTING INJURED EMPLOYEES AND DEPENDANTS OF DECEASED WORKERS IS VERY OFTEN THE DELAY IN RECEIVING PERIODICAL PAYMENTS DURING SICK LEAVE AND THE LUMP SUM PAYMENT OF COMPENSATION ALTHOUGH THEY ARE ENTITLED TO COMPENSATIONS UNDER THE EMPLOYEES’ COMPENSATION ORDINANCE," MRS FOK SAID.

SHE SAID THE PROPOSED SCHEME WOULD OFFER TIMELY HELP TO NEEDY WORKERS WHEN THEY ENCOUNTERED FINANCIAL DIFFICULTIES.

-----o------

SRC WELCOMES ADDITIONAL $30 MILLION ARTS FUND ******

THE SECRETARY FOR RECREATION AND CULTURE, MR JAMES SO, WELCOMES THE ANNOUNCEMENT BY THE FINANCIAL SECRETARY TODAY (WEDNESDAY) THAT $30 MILLION WILL BE INJECTED INTO THE SIR DAVID TRENCH FUND FOR RECREATION FOR THE SPECIFIC PURPOSE OF HELPING THE DEVELOPMENT OF BUDDING PERFORMING ARTS GROUPS.

MR SO SAID THE INTEREST GENERATED FROM THIS CAPITAL INJECTION WOULD BE DISBURSED TO BUDDING PERFORMING ARTS GROUPS ON THE ADVICE OF THE COUNCIL FOR THE PERFORMING ARTS (CFPA).

/ALTHOUGH THE .......

WEDNESDAY, MARCH 3, 1993

43

ALTHOUGH THE CAPITAL INJECTION WILL NOT FORM PART OF THE GOVERNMENT’S ANNUAL PROVISION TO CFPA, THE ADVISORY BODY WILL NEVERTHELESS BE ASKED TO ADVISE THE GOVERNMENT ON THE PROPER DISBURSEMENT OF THIS ADDITIONAL FUND.

THE GOVERNMENT’S ANNUAL PROVISION TO THE CFPA BLOCK VOTE IN THE NEW FINANCIAL YEAR OF 1993/94 WILL BE $36.68 MILLION, AN INCREASE BY ABOUT FOUR PER CENT FROM THE CURRENT YEAR’S PROVISION OF $35.14 MILLION.

OUT OF THIS, HOWEVER, A SUM OF $31 MILLION HAS BEEN EARMARKED FOR THE PROFESSIONAL AND SEMI-PROFESSIONAL GROUPS SUCH AS HONG KONG BALLET, CITY CONTEMPORARY DANCE COMPANY, CHUNG YING THEATRE COMPANY, HONG KONG ARTS FESTIVAL SOCIETY AND EXPLORATION THEATRE.

THE REMAINING $5.68 MILLION WILL BE LEFT FOR ALLOCATION TO OTHER BUDDING AND AMATEUR PERFORMING ARTS GROUPS, ON APPLICATION, TO SUPPORT THEM IN THEIR ACTIVITIES. EXPERIENCE HAS SHOWN THAT THIS IS NOT ADEQUATE.

MR SO SAID THIS HAD ALSO LED TO GRIEVANCES AMONG THE PERFORMING ARTS GROUPS AND CRITICISM FROM THE ARTS COMMUNITY THAT THE GOVERNMENT’S SUBVENTION POLICY FOR PERFORMING ARTS ACTIVITIES TENDED TO STIFLE THE GROWTH AND DEVELOPMENT OF BUDDING PERFORMING ARTS GROUPS, IN FAVOUR OF THE ESTABLISHED PROFESSIONAL GROUPS.

HE SAID: "IT IS DIFFICULT TO ESTIMATE THE AMOUNT OF SUBSIDY EACH YEAR OR HOW LONG IT WOULD TAKE FOR A BUDDING PERFORMING ARTS GROUP TO ATTAIN PROFESSIONAL STATUS."

"THE PRESENT SUBVENTION ARRANGEMENT MEANS THAT THE CFPA IS NOT IN A POSITION TO GUARANTEE A BUDDING PERFORMING ARTS GROUP SUCH AS THE SINFONIETTA HOW MUCH SUBSIDIES IT CAN EXPECT EACH YEAR UNTIL IT REACHES PROFESSIONAL STATUS.

"THIS HAS MADE FORWARD PLANNING FOR THE BUDDING PERFORMING ARTS GROUPS IMPOSSIBLE."

WITH THE INJECTION OF THE ONE-OFF GRANT OF $30 MILLION TOWARDS THE SIR DAVID TRENCH FUND FOR RECREATION, THIS WILL ENABLE THE CFPA TO PLAN AHEAD WITH SUCH GROUPS.

THE INTEREST FROM THE $30 MILLION, AND THE MONEY ALREADY RESERVED BY THE CFPA, WILL BE SUFFICIENT TO MEET THE APPLICATIONS EACH YEAR FROM BUDDING PERFORMING ARTS GROUPS.

"THIS WILL GO A LONG WAY TOWARDS ASSISTING SUCH GROUPS IN HONG KONG TO ATTAIN PROFESSIONAL STATUS," MR SO SAID.

/44 ........

WEDNESDAY, MARCH 3, 1993

44

FINANCIAL SECRETARY ♦ *

TALKS TO RADIO CALLERS * * *

MEMBERS OF THE PUBLIC WILL HAVE THE OPPORTUNITY TO SPEAK TO THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, ABOUT THE BUDGET FOR THE NEW FINANCIAL YEAR TOMORROW (THURSDAY), THE DAY IMMEDIATELY AFTER THE PUBLICATION OF THIS IMPORTANT DOCUMENT.

MR MACLEOD WILL TAKE QUESTIONS FROM CALLERS PHONING IN RTHK RADIO 1 AND 5’S "TALKABOUT" AND RADIO 3’S "HONG KONG TODAY" PROGRAMMES FROM 7.45 AM TO 8.45 AM.

THE LIVE BROADCAST, WITH SIMULTANEOUS INTERPRETATION, TAKES PLACE IN BROADCASTING HOUSE, 30 BROADCAST DRIVE, KOWLOON.

THE PHONE-IN NUMBERS ARE 187 2311 FOR THE CHINESE LANGUAGE AND 338 8266 FOR THE ENGLISH.

LATER IN THE MORNING, THE FINANCIAL SECRETARY WILL BE MEETING THE CHAIRMEN OF THE 19 DISTRICT BOARDS AT 10 AM IN THE CNTA HEADQUARTERS TO BRIEF THEM ABOUT THE IMPLICATIONS OF THE BUDGET PROPOSALS FOR THE COMMUNITY, AND THE DISTRICTS IN PARTICULAR.

IN THE AFTERNOON, MR MACLEOD WILL BE HOSTING A POST-BUDGET PRESS CONFERENCE AT 3 PM IN THE INFORMATION SERVICES DEPARTMENT.

ATTENTION NEWS EDITORS:

PHONE-IN PROGRAMME

PRESS MEMBERS WHO ARE INTERESTED TO COVER THE PROGRAMME ARE REQUESTED TO NOTE THE FOLLOWING:

AUDIO AND CLOSED CIRCUIT FACILITIES ARE SET UP FOR PRESS MEMBERS TO MONITOR ACTIVITIES INSIDE THE LIVE STUDIO.

PLEASE BRING ALONG PRESS CREDENTIALS.

DISTRICT BOARD CHAIRMEN MEETING

A PHOTOGRAPHIC FACILITY HAS BEEN ARRANGED FOR THE MEDIA TO TAKE PICTURES PRIOR TO THE START OF THE MEETING. PRESS MEMBERS ARE REQUESTED TO ASSEMBLE AT 9.45 AM AT THE NEWS AND PUBLICITY DIVISION OF CNTA, SOUTHORN CENTRE, 30TH FLOOR, 130 HENNESSY ROAD, WAN CHAI.

PRESS CONFERENCE

THE PRESS CONFERENCE WILL BE HELD AT 3 PM AT THE GIS PRESS CONFERENCE ROOM, FIFTH FLOOR, BEACONSFIELD HOUSE, CENTRAL.

- 0 -

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

THURSDAY, MARCH 4, 1993

CONTENTS PAGE NO.

TRANSCRIPT OF POST-BUDGET PRESS CONFERENCE BY FINANCIAL. SECRETARY ...................................................... 1

TRANSCRIPT OF FINANCIAL. SECRETARY'S RADIO PHONE-IN PROGRAMME ON RTHK ....................................................... 12

MORE EMIGRANTS RETURN TO HK .................................... 32

TRADE OFFICIALS VISIT GUANGDONG ................................. 33

VOLUNTARY WORK BENEFITS ELDERLY AND YOUNGSTERS ................. 33

MOTORCYCLING IN COUNTRY PARKS ILLEGAL............................ 34

MORE FUNDS FOR NEW PERFORMING ARTS GROUPS WELCOMED .............. 35

VARIETY SHOW MARKS CI,OSE OF EASTERN ARTS FESTIVAL............... 36

NEW PHONE LINE INSTALLED ........................................ 36

FINANCE COMMITTEE MEETS TOMORROW ................................ 37

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

37

THURSDAY, MARCH 4, 1993

TRANSCRIPT OF POST-BUDGET PRESS CONFERENCE BY FINANCIAL SECRETARY

*****

FS: THANK YOU. HALF AN HOUR BECAUSE WE RISK OVER EXPOSURE OTHERWISE TODAY. BUT JUST TO DEAL WITH A FEW THINGS THAT ARE COMING UP WHERE SOME MORE EXPLANATION MIGHT BE HELPFUL. FIRST, I THINK THE WORD DEFICIT STRIKES SOME CHORDS WHICH MAY BE MISLEADING. IT’S A PECULIARITY OF GOVERNMENT ACCOUNTS THAT THE ONLY WAY WE CAN ACTUALLY DRAW ON RESERVES IS TO RUN A DEFICIT. IF YOU WERE A BANK WE COULD SIMPLY DRAW ON OUR INNER RESERVES WITHOUT ACTUALLY SHOWING WHAT IN THEIR CASE WOULD BE A LOSS. BUT WE’RE NOT. IF YOU NEVER ALLOW YOURSELF TO RUN A DEFICIT YOU SIMPLY ENDLESSLY ACCUMULATE ADDITIONAL RESERVES. THERE WOULD BE NO WAY YOU COULD DRAW ON THEM AND I GUESS IF YOU DTD THAT FOR INSTANCE IN THE PERIOD TO 96/97, ADDED IN THE LAND FUND YOU’D END UP WITH RESERVES OF AROUND $200 BILLION WHICH I THINK MOST PEOPLE MIGHT AGREE WAS PERHAPS A LITTLE MORE THAN WE NEEDED. SO IT’S SIMPLY A DEVICE FOR DRAWING ON THE RESERVES. IT’S EASILY CONTROLLABLE, IT DOES NOT ARISE FROM ANY LOSS OF CONTROL ON RECURRENT EXPENDITURE, QUITE THE CONTRARY. WE’RE CONTROLLING RECURRENT EXPENDITURE AS WE ALWAYS HAVE DONE AND KEEPING IT IN LINE WITH GROWTH OF GDP.

YOU’LI, NOTICE THAT THE FIGURE FOR 93/94 IS 5.2 PER CENT WHICH IS ABOUT AS NEAR IN REAL LIFE AS YOU CAN GET IT TO THE TREND GROWTH RATE OF 5 PER CENT. SO, WE’RE QUITE CONFIDENT THAT THE RECURRENT EXPENDITURE IS UNDER CONTROL AND THE DEFICITS ARE ENTIRELY MANAGEABLE AND THAT AS WE NEAR THE END OF PEAK EXPENDITURE ON ACP TOWARDS 96/97 AND AS ADDITIONAL REVENUE KICKS IN FROM INTEREST ON THE LAND FUND AND THE FULL PROCEEDS OF LAND SALES, WE CAN BE COMFORTABLY BACK INTO EITHER BALANCED BUDGETS OR INDEED SURPLUS BUDGETS. SO THERE’S NOT PROBLEM THERE. IT’S A DEVICE WHICH WE HAVE TO USE, IT DOESN'T MEAN WE’RE SOMEHOW INTO A LOSS-MAKING SITUATION. FOTUNATELY FOR GOVERNMENTS THERE’S NO SUCH THING AS A LOSS-MAKING SITUATION.

INFLATION. THERE’S NO EASY ANSWER ON THE EFFECT OF PARTICULAR BUDGETS ON INFLATION. THE GENERAL VIEW HAS BEEN FOR VERY MANY YEARS, THIS IS NOT A VIEW THAT WE’VE SUDDENLY INVENTED BECAUSE IT SUITS US, THE GENERAL VIEW HAS BEEN FOR VERY MANY YEARS THAT BECAUSE WE’RE A SMALL GOVERNMENT, THAT’S TO SAY WE CONSUME A RELATIVELY SMALL PROPORTION OF GDP, THAT WHAT WE DO IN OUR PUBLIC FINANCES IS NOT TOO IMPORTANT IN RELATION TO INFLATION. I DON’T MEAN IT’S IRRELEVANT BUT IT’S NOT TOO IMPORTANT. OF COURSE IF YOU HAVE A MAJOR CHANGE IN THE TAX WHICH IS REFLECTED TN THE CPIA, YU’LL GET A CHANGE IN CPIA OF SOME SORT, BUT IN GENERAL IF YOU’RE MERELY TALKING ABOUT THE DIFFERENCE BETWEEN THE SURPLUS AND A SMALL DEFICIT FOR EXAMPLE, THAT IN ITSELF IS NOT GOING TO HAVE A VERY SIGNIFICANT EFFECT ON INFLATION.

/SECOND POINT .......

THURSDAY, MARCH 4, 1993

2

SECOND POINT, YOU REALLY HAVE TO LOOK AT NOT JUST THE OVERALL FIGURES BUT THE COMPOSITION OF THE EXPENDITURE. WE’VE BEEN RATHER CAREFUL TO CHOOSE THE ITEMS WE’RE SPENDING MONEY ON. THEY’RE MAINLY CAPITAL ITEMS WHICH WILL FEED INTO THE CONSTRUCTION INDUSTRY WHICH IS CURRENTLY UNDER-UTILISED, WHICH IS CURRENTLY PRODUCING TENDERS BELOW WHAT WE WOULD NORMALLY EXPECT THEM TO BE. WE’RE FORTUNATE THAT THAT’S THE POSITION, BUT IT IS THE POSITION, SO THAT THE EFFECT OF INJECTING SOME MORE PROJECTS INTO THE CONSTRUCTION INDUSTRY SHOULD NOT BE PARTICULARLY INFLATIONARY, FORTUNATELY FOR US. SECONDLY A NUMBER OF THE PROJECTS THAT WE’VE ANNOUNCED ARE SPREAD OVER A PERIOD OF YEARS, THEY DON’T SUDDENLY GET INJECTED, THE MONEY DOESN’T SUDDENLY GET INJECTED INTO THE ECONOMY. IT MAY GET OUT OF MY ACCOUNTS SUDDENLY BUT IT DOESN’T GET INTO THE ECONOMY SUDDENLY. EXAMPLES OF THAT WOULD BE ROUTE 3, WOULD BE THE EXTENSION TO THE CONVENTION CENTRE, WOULD BE THE NORTH DISTRICT HOSPITAL. THOSE ARE ALL PROJECTS WHICH TAKE A NUMBER OF YEARS. THIRDLY, MOST OF THOSE PROJECTS AND THE NORTH DISTRICT HOSPITAL IS THE ONLY EXCEPTION, DO NOT CARRY WITH THEM A SIGNIFICANT TRAIL OF RECURRENT EXPENDITURE. I THINK ONLY THE HOSPITAL OF THOSE MAJOR NEW PROJECTS THAT WE’VE ANNOUNCED, CARRIES WITH IT SOME RECURRENT EXPENDITURE AND WE’RE CONFIDENT THAT THAT CAN BE CONTAINED WITHIN OUR GROWTH GUIDELINES. ANOTHER POINT, WE’RE AN OPEN ECONOMY AND ONE OF THE MERITS OF AN OPEN ECONOMY IS THAT IF YOU GET AN INCREASE IN DEMAND FOR SAY CONSUMER PRODUCTS BECAUSE PEOPLE HAVE SOME WHAT MORE IN THEIR POCKETS BECAUSE OF TAX CONCESSIONS, PART OF THAT WILL BE SAVED, OF COURSE, BUT PART OF IT MAY BE SPENT, THEN IT CAN BE SPENT VERY SIMPLY BY IMPORTING THE PRODUCT. THAT IN ITSELF IS NOT INFLATIONARY. THE PROPORTION THAT’S INFLATIONARY WOULD ONLY BE WHAT THEY SPENT HERE ON, SAY A RESTAURANT. SO WE HAVE A HIGH SAVING HABIT IN HONG KONG, NO DOUBT SOME OF IT HOWEVER WILL BE SPENT AND QUITE A LOT OF THAT WILL SIMPLY GO INTO IMPORTING PRODUCTS WHICH IS NOT IN ITSELF PARTICULARLY INFLATIONARY.

SO IT’S THOSE SORT OF POINTS WHICH REASSURE US THAT THE BUDGET IS NOT INFLATIONARY. I WOULD HAVE TO SAY ALSO OF COURSE IT’S NOT PARTICULARLY DEFLATIONARY. BUDGETS GENERALLLY SPEAKING I SAID DON’T HAVE A SIGNIFICANT EFFECT EITHER WAY. THE MAIN INFLATIONARY PROBLEM WHICH FACES US IS THE SAME ONE THAT WE’RE FAMILIAR WITH, IT’S NOT MUCH TO DO WITH GOVERNMENT TAX POLICIES OR FISCAL POLICIES, IT’S TO DO WITH DEMAND ON A LABOUR SUPPLY AND A LAND SUPPLY WHICH IS IN SHORT, WHICH IS TOO SMALL FOR THE DEMANDS MADE ON IT AND WE HAVE TO MAKE POLITICAL JUDGEMENTS, NOT JUST ECONOMIC JUDGEMENTS ON HOW FAR WE CAN MEET THAT DEMAND. THAT’S A DECISION THAT HAS TO BE MADE IN A DIALOGUE WITH LEGCO AND THE COMMUNITY, SO THAT’S THE SITUATION WE’RF. IN. HENCE WE’RE FORECASTING THAT INFLATION WILL BE ROUGHLY THE SAME AS IT IS NOW, TO PUT IT CRUDELY. I MEAN THE 9.5 PER CENT FORECAST THAT'S IN ESSENCE WHAT IT’S SAYING. SO, HAVING TOUCHED ON THOSE TWO POINTS, PERHAPS K Y DO YOU WANT TO ELABORATE A LITTLE ON THE INFLATION POINT.

/SECRETARY FOR .......

THURSDAY, MARCH 4, 1993

3

SECRETARY FOR THE TREASURY: (SIMULTANEOUS INTERPRETATION) WE PUT IN GDP GROWTH RATE FORECASTS OF 5.5 PER CENT FOR 1993 ALONG WITH AN INFLATION FORECAST IN TERMS OF THE CPIA OF 9.5 PER CENT. I WOULD SAY BOTH THESE TWO FORECASTS HAVE TAKEN INTO ACCOUNT THE BUDGETARY EFFECTS, INCLUDING THE INCREASED CAPITAL SPENDING WHICH IS REFLECTED IN THE BUILDING AND CONSTRUCTION COMPONENT WITHIN THE GDP AND ALSO THE EFFECT OF THE TAX CONCESSIONS ON PEOPLES’ EXPENDITURE AND THAT IS ALSO REFLECTED IN THE CONSUMPTION SPENDING COMPONENT OF THE GDP.

FS: THANK YOU. QUESTIONS.

QUESTION: SIR, YOU SAID YESTERDAY THAT FINANCIAL SECRETARY’S TEND TO BE RATHER CONSERVATIVE IN THEIR ESTIMATES. READING THE PAPERS AND TALKING WITH ECONOMISTS AND TAX PEOPLE, THEY ALL SAY YOU’VE BEEN VERY OPTIMISTIC WITH THE INFLATION FORECAST, DO YOU THINK YOU’VE BEEN OPTIMISTIC?

FS: I’M NOT SURE THAT THEY DO ALL SAY THAT. THERE SEEMS TO BE A TENDANCY TO TRY AND SEEK THE CLOUD UNDERLYING WHAT SEEMS TO BE A PRETTY GOOD PACKAGE AND IF YOU’RE SEARCHING AROUND FOR A CLOUD THEN THAT’S PERHAPS ONE TO TRY AND FIND. I THINK WE HAVE BEEN PRETTY GOOD IN OUR FORECASTS ON BOTH ECONOMIC GROWTH AND INFLATION, THEY’RE NOT EASY TO MAKE SO I’M NOT PRETENDING THAT PEOPLE AREN’T FALLIBLE IN THIS AREA, BUT OUR RECORD ON THE ECONOMIC FORECASTING IS PRETTY GOOD. AS I SAID, I THINK THE FACTOR THAT PEOPLE HAVE TO TAKE INTO ACCOUNT IS THE CAPACITY IN THE CONSTRUCTION INDUSTRY. BEAR IN MIND ALSO THAT WE HAVE A SPECIAL IMPORTATION OF LABOUR SCHEME FOR ACP CONSTRUCTION PROJECTS WHICH ALSO HELPS TO EASE THE IMPACT OF THOSE PARTICULAR PROJECTS. THAT’S ADDITIONAL TO THE GENERAL QUOTA. BUT WE’RE NOT PRETENDING THAT WE’RE HEADING TOWARDS AFTER ALL DRAMATICALLY REDUCED INFLATION, WE’RE NOT. WE’RE BEING VERY HONEST ABOUT THE PROBLEM.

QUESTION: I HAVE A QUESTION FOR MR AU-YEUNG. NOW AT PRESENT, OR IN THE PAST YEAR, NOW CONCERNING TAX AVOIDANCE AND TAX EVASION. I WOULD LIKE TO KNOW THE LOSS INFLICTED UPON THE TREASURY AND ALSO CONCERNING THE TWO SITUATIONS MENTIONED IN THE BUDGET CONCERNING AVOIDANCE AND EVASION, ARE THERE ANY OTHER EXAMPLES OF TAX AVOIDANCE AND EVASION? AND IN THE BUDGET IT IS SAID THAT MORE RESOURCES WILL BE CHANNELLED TO COMBAT TAX AVOIDANCE AND EVASION. CAN YOU GO INTO DETAIL MR AU-YEUNG?

/COMMISSIONER FOR .......

THURSDAY, MARCH 4, 1993


COMMISSIONER FOR INLAND REVENUE: NOW WITH REGARD TO TAX EVASION, IT’S VERY DIFFICULT TO IDENTIFY A CONCRETE FIGURE. EVERY YEAR FROM OUR INVESTIGATIVE UNIT AND FROM OUR FIELD AUDIT UNIT, WE DETECT SOME PHENOMENA OF TAX EVASION AND FROM SUCH FIGURES WE BELIEVE THAT THE LOSS CAN BE A FEW HUNDRED MILLION DOLLARS BUT WE DON’T HAVE AN EXACT FIGURE. BUT ACCORDING TO OUR OBSERVATION, THE HONG KONG TAX RATE IS NOT VERY HIGH AND ALSO OUR TAX ALLOWANCE IS ALSO QUITE GENEROUS AND SO IF WE LOOK AT THE PROBLEM FROM THIS ANGLE, TAX EVASION IS NOT AS SERIOUS AS ONE WOULD EXPECT AND IN THE BUDGET WE TALK ABOUT MEASURES TO CURB OR COMBAT TAX AVOIDANCE AND EVASION AND WE THINK THAT FOR TAX AVOIDANCE THE AMOUNT INVOLVED IS ABOUT ONE HUNDRED MILLION DOLLARS A YEAR. CONCERNING THE INLAND REVENUE DEPARTMENT AND THE GOVERNMENT WE ARE VERY CONCERNED ABOUT THE PROBLEMS OF TAX AVOIDANCE AND EVASION AND IN THE COMING YEAR, APART FROM STRENGTHENING OUR MANPOWER RESOURCES, WE WILL ALSO HAVE REDEPLOYMENT OF RESOURCES WITHIN OUR DEPARTMENT AND FOR OUR FEW AUDIT TEAM WE WILL HAVE NINE EXTRA ASSESSORS AND WE HAVE ALSO REDEPLOYED PEOPLE FROM UNIT ONE AND THAT IS TO SAY WE AT PRESENT HAVE 36 ASSESSORS AND WE WILL HAVE 18 MORE AND ALSO THERE WILL BE MORE OFFICERS FOR THE INVESTIGATION UNIT. WF EXPECT THAT WITH THE STRENGTHENING OF MANPOWER RESOURCES WE WILL BE ABLE TO COPE BETTER WITH THIS PROBLEM.

QUESTION: NOW ACCORDING TO THE PRESENT SITUATION, APART FROM THE TWO SITUATIONS MENTIONED IN THE BUDGET CONCERNING INTELLECTUAL PROPERTY RIGHTS AND VEHICLES FIRST REGISTRATION TAX, DO YOU DETECT OTHER MODES OF AVOIDANCE AND EVASION?

COMMISSIONER FOR INLAND REVENUE: (SI) NO WE HAVE LONG BEEN CONCERNED ABOUT METHODS OF EVASION AND AVOIDANCE BUT WE CAN ONLY MAKE THESE KNOWN AT AN APPROPRIATE TIME AND IF WE HAVE MEASURES IN MIND AND IF WE ANNOUNCE THEM WE WILL HAVE TO IMPLEMENT THEM. NOW WE HAVE SECTION 61A OF THE INLAND REVENUE ORDINANCE TO PREVENT TAX AVOIDANCE AND EVASION.

QUESTION: AFTER SO MANY YEARS OF CAUTIOUS, CAREFUL BUDGETS, CAN YOU TELL US WHAT THE CATALYST WAS THAT ALLOWED YOU TO BE SO BENEVOLENT THIS YEAR AND ALSO DID IT NEVER CROSS YOUR MIND THAT PEOPLE MIGHT READ A DARKER, POLITICAL ELEMENT INTO YOUR GENEROSITY?

/I LIKE .......

THURSDAY, MARCH 4, 1993

5

FS: I LIKE THE WORD BENEVOLENT, THANK YOU VERY MUCH. IT'S NOT OFTEN USED TO FINANCIAL SECRETARY’S. WELL, OF COURSE, WE’RE BEING BENEVOLENT BUT WE’RE BEING SELECTIVELY BENEVOLENT. THAT IS TO SAY, WE’VE CHANNELLED THE INCREASE IN RECURRENT EXPENDITURE VERY DELIBERATELY INTO THE SOCIAL SERVICES, GIVEN THEM PRIORITY. APART FROM, OF COURSE, THE ENVIRONMENT WHICH IS A RATHER SPECIAL CASE BUT BASICALLY YOU SEE THE MAIN THRUST OF THE INCREASE IN SOCIAL SERVICES AND BY BEING SELECTIVE ABOUT IT AND NOT JUST INCREASING EXPENDITURE ACROSS THE BOARD IN ALL DEPARTMENTS, WE’VE BEEN ABLE TO KEEP THE INCREASE IN RECURRENT WITHIN OUR GUIDELINES. SO, THAT’S A POINT I WANT TO EMPHASISE BECAUSE IT’S RECURRENT EXPENDITURE WHICH IS DIFFICULT TO WIND BACK AGAIN IF YOU GET INTO A LOWER GROWTH SITUATION. SO WHY THEN THE QUESTION BECOMES DID WE SPEND MORE ON THESE OTHER ONE-OFF ITEMS THAN WE NORMALLY WOULD, AND THE ANSWER THERE IS PARTLY THE EXTRA SURPLUS THAT WE HAD THIS YEAR WHICH WAS PRODUCING RESERVES OF 120 BILLION OR SO, AND PARTLY OUR VERY GOOD PROSPECTS AS EVIDENCED BY THE GDP GROWTH FORECASTS. THE COMBINATION OF THOSE TWO LET US LOOSEN THE REINS A BIT BUT I’VE BEEN VERY CAREFUL THAT WHAT WE’RE LOOSENING THE REINS ON IN THE MAJORITY OF CASES ARE ITEMS WHICH INCREASE OUR, AS IT WERE, OUR EARNING POWER IN FUTURE. THAT’S TO SAY INCREASE OUR ECONOMIC GROWTH AND INCREASE OUR EFFICIENCY. ROUTE 3, TUEN MUN HIGHWAY, CONVENTION CENTRE EXTENSION, ITEMS LIKE THAT ARE ECONOMIC INVESTMENTS WHICH PRODUCE ECONOMIC RETURNS. WE’RE NOT SIMPLY PUTTING MONEY AS IT WERE INTO A HOLE IN THE GROUND, EXCEPT PERHAPS IN THE CASE OF THE SEWAGE PROGRAMME, ALTHOUGH I’M TOLD THERE, THERE ARE ALSO ECONOMIC RETURNS BECAUSE IF YOU DON’T DO IT WE’RE GOING TO SEE A FALLING OFF, FOR INSTANCE IN TOURISM. BUT GENERALLY SPEAKING ECONOMIC RETURNS OF INFRASTRUCTURE ARE ACTUALLY RATHER GOOD AND THAT’S WHAT’S HELPED TO KEEP HONG KONG AHEAD. SO, YES WE’RE BEING BENEVOLENT BUT WE’RE ALSO BEING VERY SELECTIVE AND WE’VE OF COURSE DELIBERATELY PAID A LOT OF ATTENTION TO WHAT THE PRIORITIES ARE AS EXPRESSED TO US, EITHER THROUGH LEGCO MEMBERS OR MORE DIRECTLY FROM THE COMMUNITY. IN THAT SENSE I’M BEING MORE POLITICAL, I’M BEING MORE RESPONSIVE. I THINK THAT’S THE JOB OF A GOVERNMENT SO I DON’T MIND THAT DESCRIPTION AT ALL.

QUESTION: MR MACLEOD, YOU SAID THIS MORNING THAT YOUR FORECAST, YOUR CURRENT FORECASTS ARE BASED ON THE CURRENT, THE ORIGINAL FUNDING PROPOSALS FOR THE AIRPORT AND AS WE ALL KNOW YOUR SECOND PROPOSAL ASK FOR, SUGGEST ABOUT AN EXTRA 20 BILLION DOLLARS INJECTION INTO THE AIRPORT AND THE AIRPORT RAILWAY. DOES THAT MEAN THAT IF EVENTUALLY YOU SECURE AN AGREEMENT WITH THE CHINESE GOVERNMENT WITHIN THIS YEAR THAT THE LEVEL OF DEFICIT WILL BE EVEN HIGHER AND THAT YOUR EXPECTATION THAT BY 97/98 WE CAN COME BACK TO A SURPLUS OR BALANCED BUDGET THE HOPE WOULD BE FADING AWAY?

/WELL YOU'RE .......

THURSDAY, MARCH 4, 1993

FS: WELL YOU’RE RIGHT, EXACTLY RIGHT IN THE FIRST PART THAT THE FIGURES WE’VE USED OF NECESSITY HAD TO BE THE FIGURES WE STARTED WITH. THAT’S TO SAY THE ORIGINAL FINANCING PROPOSAL. THE REVISED FINANCING PROPOSAL WHICH WE PUT UP BUT WHICH WAS NOT AGREED WAS IN A SENSE SELF-CONTAINED. THAT’S TO SAY IT ENVISAGED THAT THE REVENUE FROM THE PROPERTY DEVELOPMENTS ABOVE THE AIRPORT RAILWAY WOULD BE REGARDED AS, TREATED AS AND WOULD IN FACT BE ADDITIONAL LAND REVENUE AND THAT THAT WOULD BE USED TO INJECT MORE MONEY INTO THE TWO PROJECTS, SO IT WAS SELF-CONTAINED. IT USED EXTRA REVENUE TO PRODUCE EXTRA INJECTION, SO ON THAT BASIS YOU’D SIMPLY GET AN ADDITIONAL FIGURE IN REVENUE AND AN ADDITIONAL FIGURE IN EQUITY INJECTIONS OR SIMILAR AND THE NET RESULT WOULD BE THE SAME. THAT WAS OUR PROPOSAL. WHAT THE EVENTUAL OUTCOME WILL BE, OF COURSE WE DON’T KNOW.

QUESTION: (INAUDIBLE) BECAUSE THE CHINESE GOVERNMENT IS ASKING FOR MORE CAPITAL INJECTIONS INTO THE TWO PROJECTS, OTHER THAN THE 20 BILLTON THAT YOU HAVE UNDERTAKEN. SO THERE IS STILL A POSSIBILITY THAT THE LEVEL OF DEFICITS WILL BE EVEN HIGHER AND THAT BY 1997/98 YOU CAN’T COME BACK WITH SURPLUS OR BALANCED BUDGET.

FS: THE TWO DON’T GO TOGETHER. EVEN IF YOU THINK OF SCENARIOS WHERE YOU MIGHT SPEND A BIT MORE OVER A PERIOD OF THREE OR FOUR YEARS, THAT WOULD OF COURSE REDUCE THE RESERVES AT THE END OF THE PERIOD BUT IT WOULDN’T MAKE IT ANYMORE DIFFICULT TO PRODUCE A BALANCED BUDGET IN 97/98 BECAUSE THOSE INJECTIONS WOULD BE FINISHED BY 1997.

QUESTION: DO YOU ACCEPT THE CHINESE GOVERNMENT’S CRITICISM

THAT YOUR BUDGET FOR DEFICIT IS ALREADY IN BREACH OF THE BASIC LAW?

FS: I DON'T KNOW THAT THEY’VE SAID IT QUITE AS CLEARLY AS THAT, BUT I’D JUST MAKE A FEW POINTS NOT DIRECTLY RESPONDING TO THAT POINT. FIRST OF ALL THE BASIC LAW DOESN’T HAPPEN TO BE TN OPERATION YET. SECONDLY, IT DOESN’T ACTUALLY SAY YOU CAN’T HAVE DEFICITS. IT SAYS A NUMBER OF THINGS, IT SAYS YOU SHOULD STRIVE FOR BALANCED BUDGETS, KEEPING GROWTH OF EXPENDITURE IN LINE WITH GROWTH OF THE ECONOMY AND SO ON AND SO FORTH. THIRDLY, AN OVER-LITERAL INTERPRETATION OF THAT RULE WOULD LEAD TO THE ABSURB RESULT THAT YOU COULD NEVER DRAW ON YOUR RESERVES. YOU WOULD SIMPLY ACCUMULATE LARGER AND LARGER RESERVES AND YOU COULD NEVER DRAW ON THEM BECAUSE THE ONLY WAY YOU CAN DRAW ON THEM IS TO RUN A DEFICIT, THAT’S WHY I SAY IT’S A FUNNY SORT OF DEFICIT. SO I THINK IF ANYONE DID SAY THAT, IT WOULD BE RATHER STRANGE.

/THE EXCHANGE

THURSDAY, MARCH 4, 1993

7

QUESTION (CONT’D) ... THE EXCHANGE FROM BILLS AND BONDS. HOW DO YOU EXPAND ON THAT, PLEASE? AND IN PARTICULAR, DOES THAT MEAN THAT THE MTRC AND THE AIRPORT AUTHORITY MIGHT BE ABLE TO ISSUE BONDS?

FS: YES. I CAN’T EXPAND ON IT TECHNICALLY, YOU WOULD HAVE

TO GO TO THE MONETARY AUTHORITY FOR THAT, BUT 1 WILL EXPAND ON IT IN A NON-TECHNICAL WAY. THE PROPOSAL IS SIMPLY THAT WE HAVE A RATHER GOOD MECHANISM IN PLACE FOR DEALING WITH THE BUYING AND SELLING OF EXCHANGE FUND BILLS. IT’S NON-PAPF.R, IT’S INSTANTANEOUS, IT’S ALL DONE BY COMPUTERS, AND THERE IS A VERY LIQUID MARKET IN THEM. THE RESULT OF

THAT IS THAT YOU CAN HAVE THOSE BILLS, OR WE CAN HAVE THOSE BILLS, AT

VERY LOW INTEREST RATES. IF THE MTRC AND THE PAA WHEN THEY ARE

BORROWING, AND OF COURSE THE MTRC DOES ALREADY BORROW, WERE ABLE TO USE THAT MECHANISM - THEY’RE NOT BECOMING EXCHANGE FUND BILLS OR

ANYTHING OF THAT SORT, THEY’RE MERELY USING THE MECHANISM, THE COMPUTER SYSTEM AND SO ON - THEN THEY WOULD, ON THE FACE OF IT, BECOME A MUCH MORE LIQUID COMMODITY; THE MARKET IN THEM WOULD BE INCREASED, INTEREST IN THEM WOULD BE INCREASED, AND THEY WOULD PROBABLY BE ABLE TO BORROW AT A SLIGHTLY CHEAPER RATE. THAT IS THE CONCEPT, THE DETAILS ARE BEING LOOKED AT.

QUESTION: NOW MR MACLEOD, I HAVE TWO QUESTIONS. HOW WOULD YOU

COMMENT ON AN OPINION THAT A BALANCED BUDGET WOULD HELP HONG KONG TO HAVE A SMOOTH TRANSITION INTO 1997? AND THEN ANOTHER QUESTION: THE GOVERNMENT HAS TALKED ABOUT BROADENING THE TAX BASE FOR YEARS, SO HOW WOULD THIS YEAR’S BUDGET REFLECT THAT YOU CAN ACHIEVE THIS PURPOSE?

FS: WELL BALANCED BUDGET, 1 THINK I’VE PROBABLY COMMENTED ON ALREADY IN THE CONTEXT OF THE QUESTION ABOUT DEFICITS, I MEAN YOUR CHOICE IS EITHER — OK — BROADENING THE TAX BASE, MY OWN VIEW IS THAT THE ARGUMENT WAS PERHAPS SOMEWHAT OVERDONE IN THE PAST, AND YOU WILL NOTICE THAT I’VE STARTED USING SLIGHTLY DIFFERENT LANGUAGE ON THIS SUBJECT. THERE USED TO BE A TRADITION TO FOCUS ON THE RATIO BETWEEN DIRECT AND INDIRECT TAXATION AND THEN TO ARGUE THAT INDIRECT TAXATION WAS MORE STABLE AND HENCE WE SHOULD INCREASE THAT AND DECREASE OUR DEPENDENCE ON DIRECT TAXATION, THAT’S BASICALLY THE ARGUMENT AND THAT LED TO THE PROPOSAL TO HAVE A SALES TAX.

FIRST OF ALL, THE ARGUMENT IS NECESSARILY A GENERALISATION, AND IT IS NOT A TERRIBLY GOOD GENERALISATION, IN THE SENSE THAT SOME DIRECT TAXES ARE ACTUALLY VERY STABLE. SALARIES TAX IS ONE THAT IS VERY STABLE. SOME INDIRECT TAXES ARE VERY UNSTABLE. STAMP DUTY IS A GOOD EXAMPLE OF THAT. SO YOU HAVE TO BE MUCH MORE SELECTIVE AND WHAT I DID LAST YEAR OF COURSE WAS CHOOSE A TAX, WHICH I STILL BELIEVE TO BE AN EXCELLENT TAX, AND THAT IS THE RATES. UNFORTUNATELY, THAT DIDN’T PROVE TO BE A PARTICULARLY FRUITFUL COURSE OF ACTION, TO PUT IT MILDLY. THE SALES TAX IS ANOTHER EXAMPLE OF A PROPOSAL WHICH IS THEORETICALLY EXCELLENT, AND I SEE THAT SINGAPORE ARE BEING BOLD ENOUGH TO PROCEED WITH A VERSION OF IT. I WISH THEM GOOD LUCK. BUT TN OUR SITUATION, WHERE WE HAVE NO NEED FOR NEW TAX SOURCES, TO RELY ON A RATHER THEORETICAL ARGUMENT ABOUT STABILITY WHEN OUR REVENUE IS CLEARLY SUFFICIENT, AND WHEN THE INTRODUCTION OF SALES TAX WOULD HAVE A ONE-OFF INFLATIONARY EFFECT, DOES NOT STRIKE ME AS TERRIBLY ATTRACTIVE, HENCE I HAVEN’T PURSUED IT.

/AND I .......

THURSDAY, MARCH 4, 1993

8

AND I AM NOT AT ALL EMBARRASSED TO BE REDUCING THE NUMBER OF TAXES. I MEAN I THINK THIS IS A PRETTY GOOD THING TO DO. AND REMEMBER THE TAXES THAT I HAVE BEEN DELETING IN THE LAST COUPLE OF YEARS WERE TAXES THAT WERE INTRODUCED BY ONE OF MY PREDECESSORS AT A TIME WHEN THE FINANCES WERE THOUGHT TO NEED SOME ADDITIONAL REVENUE, THAT’S WHY THEY WERE INTRODUCED. IF WE NO LONGER NEED IT, WE SHOULD GET RID OF THEM, THAT IS MY VIEW.

I THINK WHAT HONG KONG NEEDS IN THE RUN UP TO ’97, TO COME BACK PARTLY TO YOUR EARLIER QUESTION, IS A LACK OF INNOVATION IN TAXATION THEORY AND PRACTICE. I THINK PEOPLE WANT STABILITY IN TAXATION AS IN OTHER MATTERS, THAT IS TO SAY THEY DON’T PARTICULARLY WANT NEW TAXES INTRODUCED FOR THEORETICAL REASONS. WE HAVE A VERY GOOD TAXATION SYSTEM, WE HAVE GOOD REVENUES, AND I DON’T SEE THE NEED FOR RADICAL REFORM.

QUESTION: ... DEAD AND BURIED, FOR AS LONG AS YOU ARE FINANCIAL SECRETARY?

FS: WELL, NO ONE EVER LIKES TO ACTUALLY BURY A TAX PROPOSAL, SO WE WILL JUST LEAVE IT IN THE BACK ROOM WITH COBWEBS ON IT.

QUESTION: ... REPRESENTATIONS FROM THE CONSTRUCTIONS, IT HAS BEEN SAID THAT THE SUGGESTION YOU SUGGESTED YESTERDAY, TO OVERCOME THE PROBLEM OF PUBLIC WORKS EXPENDITURE LESS THAN THE BUDGET IS NOT SO DEMOCRATIC.

FS: I DIDN’T SEE THAT - AND I’D LIKE TO KNOW WHY. BUT WE HAVE ACTUALLY SAID THAT WE HAVE A RANGE OF IDEAS BUT WE WOULD LIKE TO DRAW ON PARTLY PRIVATE SECTOR BEST PRACTICE AND EXPERIENCE AND SEE HOW MUCH THAT CAN BE APPLIED, WE WOULD LIKE TO EXPLORE WIDER USE OF DESIGN AND CONSTRUCT AND SO ON. SO I AM NOT QUITE SURE WHICH PARTICULAR BIT SOMEONE DIDN’T LIKE.

QUESTION: BECAUSE THE CONSTRUCTION INDUSTRY, THEY THINK THAT THE PROBLEM LIES TN THE LONG PERIODS OF TIME FOR THE LEGISLATIVE COUNCIL TO ISSUE THINGS TO THE RELEVANT DEPARTMENTS AND FOR THE DIFFERENT DEPARTMENTS TO AGREE ON THE DESIGN OF THE PROJECT.

FS: WELL, WE ARE LOOKING AT THE WHOLE THING, THAT IS, WE ARE LOOKING AT ALL THE PROCEDURES AND TIME THINGS, BUT I THINK IT WOULD CERTAINLY BE NOT FAIR TO SAY THAT IT IS JUST THE LEGCO END OF THE PROCEDURE, THERE IS A LOT THAT HAPPENS BEFORE IT EVER GETS TO LEGCO WHICH WE HAVE ALSO GOT TO TIGHTEN UP.

SECRETARY FOR WORKS: I THINK THAT IS ABSOLUTELY RIGHT, FINANCIAL SECRETARY. THE PROCESS OF PLANNING, AS YOU KNOW WE’VE GOT MORE THAN A THOUSAND ITEMS UNDER PLANNING. THE PROCESS OF BRINGING THOSE ITEMS FORWARD, ACCORDING TO A FIXED PROGRAMME, IS EXACTLY THE AREA THAT WE ARE LOOKING AT AT THE MOMENT, AND IT IS NOT RIGHT TO SAY THAT ANY ONE PARTICULAR PROCEDURE IS TO BLAME FOR ANY DELAYS THAT MIGHT TAKE PLACE, IT IS A MATTER OF FORECASTING WHAT THOSE DELAYS ARE.

/MR MACLEOD

THURSDAY, MARCH 4, 1993

9

QUESTION: MR MACLEOD, WILL YOU PLEASE EXPLAIN WHY THE BIG DEFICIT IN THE NEXT FEW FINANCIAL YEARS IS NECESSARY, AND WILL YOU PLEASE GIVE SOME REASONS FOR THAT?

FS: OK.

QUESTION: I WANT TO ASK A SECOND QUESTION.

FS: CAN YOU STOP THERE FOR A MINUTE, OTHERWISE I WILL FORGET IT.

FS: WE HAPPEN TO HAVE A FINANCIAL POSITION WHICH IS NOT ONLY HEALTHY BUT IS MORE HEALTHY THAN WE HAD PLANNED FOR. THAT IS THE RESULT OF THINGS WHICH ARE WELL UNDERSTOOD: THE REVENUES WERE HIGHER THAN WE EXPECTED AND WE ALSO HAD CAPACITY PROBLEMS IN ACTUALLY SPENDING ALL THE MONEY ON CAPITAL WORKS. SO WE END UP WITH RESERVES OF ABOUT $120 BILLION. WE HAVE NEVER SAID WE NEED RESERVES OF ANYTHING LIKE THAT SIZE. AT THE SAME TIME WE ARE FACED WITH REQUESTS, SUGGESTIONS, FOR A RANGE OF SERVICES AND PROJECTS ON WHICH WE SHOULD BE SPENDING MONEY. NOW IT SEEMS TO ME TO MAKE SENSE TO MARRY THOSE TWO POINTS, THE SUPPLY OF MONEY IN THE RESERVES AND THE DEMANDS FOR MORE EXPENDITURE, AND TO DRAW ON THE RESERVES TO DO THOSE PROJECTS. INDEED, I WAS CRITICISED LAST YEAR FOR BEING TOO CONSERVATIVE IN AIMING FOR $71 BILLION IN 1996-97. SO I KNEW I WOULD BE CRITICISED EVEN MORE HARSHLY IF I SIMPLY PILED UP THE MONEY AND DIDN’T SPEND IT, AND WE ARE TALKING ABOUT RATHER LARGE SUMS OF MONEY.

AND AS I SAID, IT IS A SORT OF ACCOUNTING FACT THAT UNFORTUNATELY, I CAN ONLY DRAW ON THE RESERVES BY RUNNING A DEFICIT. I HOPE IT IS UNDERSTANDABLE. BUT IF YOU HAVE A SUM OF MONEY WHICH IS AT THE BEGINNING OF THE YEAR, SAY 100 BILLION, AND YOU HAVE REVENUE COMING IN WHICH MEETS EXPENDITURE OR EXCEEDS IT, THAT IS A SURPLUS BUDGET, THEN OF COURSE THE RESERVES ARE UNTOUCHED. SO THE ONLY WAY YOU CAN DRAW ON IT IS TO RUN A DEFICIT. IN OTHER WORDS, EXPENDITURE EXCEEDS REVENUE IN A PARTICULAR YEAR, THEN YOU ARE RUNNING A DEFICIT. THAT IS ALL IT IS. AND WE HAVE PLANNED IT SO THAT WE MERELY HAVE A FEW YEARS OF THESE TEMPORARY DEFICITS AND THEN WE VERY HAPPILY GO BACK INTO EITHER LEVEL BUDGETS OR EVEN SURPLUS BUDGETS, THAT IS ENTIRELY UP TO THE SAR GOVERNMENT. THAT’S WHAT WE’RE DOING. WE ARE OF COURSE A RATHER UNUSUAL GOVERNMENT IN EVER HAVING SURPLUS BUDGETS, BUT THEN THAT IS ANOTHER PROBLEM.

QUESTION: I WANT TO ASK ABOUT BONDS, MR MACLEOD. YOU ANNOUNCED TWO SMALL MEASURES TO HELP THAT MARKET DEVELOP BUT DID NOT SAY ANYTHING ABOUT EXTENDING THE TAX HOLIDAY FOR BONDS ISSUED BY MULTI-LATERAL LENDING INSTITUTIONS TO OTHER BONDS. HAVE YOU GIVEN THIS ANY FURTHER CONSIDERATION?

FS: WE HAVE GIVEN IT CONSIDERATION BUT THE ABSENCE OF ANYTHING IN THE BUDGET SIGNIFIES THAT WE HAVEN’T REACHED A CONCLUSION ON IT, I’M AFRAID. WE PRESENTLY GIVE CONCESSIONS TO PEOPLE LIKE ADB AND WORLD BANK, BUT YOU’RE RIGHT THAT THERE ARE OTHER PROPOSALS FOR SUCH TREATMENT, BUT I DON’T THINK WE’VE GOT ANY CONCLUSION ON THAT, CERTAINLY NOT ONE I COULD ANNOUNCE IN THE BUDGET.

/QUESTION .......

THURSDAY, MARCH 4, 1993

10 -

QUESTION: CAN YOU TELL ME WHERE YOU STAND ON THAT NOW, AT LEAST?

FS: WE STAND WITHOUT A CONCLUSION, I’M AFRAID.

QUESTION: I WOULD LIKE TO ASK MR YEUNG ONE QUESTION. THE GOVERNMENT SPENDS A LOT ON INFRASTRUCTURE AND SOCIAL WELFARE. ARE YOU WORRIED THAT IN 94-95 THEN LEGCO MEMBERS AND THE PUBLIC WILL HAVE MORE EXPECTATIONS FROM THE GOVERNMENT, MR YEUNG?

SECRETARY FOR THE TREASURY: (ST) I DON’T THINK THIS WILL BE THE CASE. FOR THE 93-94 ESTIMATES OF EXPENDITURE, THEY ARE IN LINE WITH THE GOVERNOR’S FIVE-YEAR PROGRAMME DEBATED IN OCTOBER LAST YEAR, AND THE VIEWS OF THE PUBLIC WERE REFLECTED THROUGH LEGCO MEMBERS AND I THINK MOST OF THE PUBLIC SUPPORT THIS FIVE-YEAR PROGRAMME. NOW IN PLANNING FOR THIS FIVE-YEAR PROGRAMME, WE OF COURSE HAVE TO STUDY WHETHER WE CAN AFFORD TO EXPAND THESE SERVICES, AND SO OUR ANSWER OR OUR CONCLUSION IS THAT WE WILL BE ABLE TO AFFORD THIS COMMITMENT.

QUESTION: YES, SOME RESPONSES, I MEAN TO YOUR BUDGET, ARE THAT YOU ARE TOO OPTIMISTIC TO THE FUTURE ECONOMIC GROWTH OF HONG KONG AND THEY ARE WORRYING ABOUT THE RESERVES, AND WHAT YOU PREDICT, IF YOU DRAW A LINE FROM TODAY TO ’97 IS A DECLINING CURVE. SO DO YOU THINK IT IS TOO SENSITIVE TO DO THAT, I MEAN DURING THIS TRANSITIONAL PERIOD?

FS: WELL, WHAT WE HAVE SIMPLY USED IS THE FIVE PER CENT PER ANNUM REAL GROWTH IN GDP ASSUMPTION. WE’RE NOT TALKING ABOUT THE EXACT EXPENDITURE PROFILE BUT THE UNDERLYING ASSUMPTION IS FIVE PER CENT GROWTH IN GDP. YOU CAN ARGUE ABOUT WHETHER IT SHOULD BE, YOU KNOW, 4.75 OR 5.25, BUT I THINK THERE AREN’T TOO MANY GUESSES TOO FAR AWAY FROM THAT FIGURE. AS FAR AS THE CURRENT YEAR IS CONCERNED, WE ARE FORECASTING 5.5. I HAVE SEEN FORECASTS WHICH RANGE BETWEEN 5.5 AND 6, SO I MEAN THAT WOULD TEND TO BE THE ROUGH CONSENSUS. OF COURSE IT IS TRUE THERE ARE DOWNSIDE RISKS, AND ONE OF THE DOWNSIDE RISKS IS THAT THE GROWTH WILL BE LESS THAN THAT. BUT THAT IS WHY WE HAVE RESERVES, AND THAT IS WHY WE TRY AND KEEP AND ARE KEEPING RECURRENT EXPENDITURE UNDER CONTROL.

QUESTION (CONT’D) ... GOVERNMENT EXPENDITURE MUST BE IN LINE WITH ECONOMIC GROWTH. AND CONCERNING YOUR MEDIUM RANGE FORECAST, THE GOVERNMENT EXPENDITURE INCREASE IS BASED ON THE INFLATION RATE, 8.5, BUT AT PRESENT OUR INFLATION RATE IS ALREADY 9.5 PER CENT, SO HAVE YOU UNDERESTIMATED THE GROWTH IN EXPENDITURE? SO MR YEUNG, WHAT DO YOU THINK, AND WHAT WILL HAPPEN TO OUR RESERVES LEVEL?

/SECRETARY FOR .......

THURSDAY, MARCH 4, 1993

SECRETARY FOR THE TREASURY: (SI) EVERY YEAR, IN REAL TERMS, OUR EXPENDITURE IS NOT CALCULATED ON AN ANNUAL BASIS, AS MOST ACCOUNTANTS WILL SAY, WE TAKE INTO ACCOUNT A FEW YEARS AND WE LOOK AT THE AMOUNT WE PLAN TO SPEND AND THE AMOUNT WE ACTUALLY SPEND. NOW IF YOU LOOK AT "APPENDIX A" OF THE BUDGET, YOU WILL SEE THAT FOR OUR ANNUAL EXPENDITURE AND THE EXPECTED EXPENDITURE, THEY ARE IN STEP WITH ONE ANOTHER, ESPECIALLY WITH REGARD TO RECURRENT EXPENDITURE. PLEASE REFER TO PAGE NINE AND YOU WILL KNOW. SOMETIMES, OR IN FACT IN ONE YEAR, IT EXCEEDED THE FIGURE BY FIVE PER CENT, BECAUSE FOR CAPITAL EXPENDITURE FOR ONE OR TWO CONSECUTIVE YEARS THERE WAS UNDER-SPENDING AND WE WANT TO MAKE UP FOR THE MONEY WHICH HAS NOT BEEN SPENT, AND THAT IS WHY FOR CAPITAL EXPENDITURE THE AMOUNT MAY BE LARGER. BUT AS THE FS HAS POINTED OUT, WHAT IS MOST IMPORTANT IS THAT THERE SHOULD BE GOOD CONTROL OR SOUND CONTROL OVER RECURRENT EXPENDITURE. NOW FOR CAPITAL EXPENDITURE, IT IS DIFFERENT FROM RECURRENT EXPENDITURE, AND FOR CAPITAL EXPENDITURE THERE ARE FLUCTUATIONS FROM YEAR TO YEAR, IT IS NOT THAT EASY TO CONTROL.

QUESTION: I WANTED TO ASK ABOUT THE COMPUTER SYSTEM THAT I ASKED ABOUT YESTERDAY, HOW SOON IT WILL BE UP AND RUNNING, THE ONE THAT IS GOING TO LINK THE DIFFERENT PUBLIC WORKS DEPARTMENTS, AND HOW SOON IT CAN START ENSURING THAT WHAT IS ALLOCATED IS SPENT?

SECRETARY FOR WORKS: IF 1 MIGHT ANSWER THIS, FINANCIAL SECRETARY. OF COURSE WITHIN THE WORKS BRANCH AND THE WORKS DEPARTMENTS THERE ARE ALREADY COMPUTER SYSTEMS IN USE. THE PLANNING WHICH IS GOING ON AT THE MOMENT IS TO ENSURE THAT THROUGHOUT THE WHOLE OF THE WORKS GROUP OF DEPARTMENTS THEIR PRESENT COMPUTER SYSTEMS ARE ALL COMPATIBLE, THAT THEY ARE ALL BASICALLY WORKING FROM THE SAME PLATFORM, SO THAT THE INFORMATION IS COMPLETELY INTERCHANGEABLE. THAT OF COURSE MEANS THAT WE AT THE WORKS BRANCH AND FINANCE BRANCH CAN TAKE AN OVERVIEW USING THAT CONSISTENCY OF INFORMATION. WE EXPECT BY THE MIDDLE OF THIS COMING YEAR TO HAVE ADVANCED TO A POINT WHERE WE CAN SEE WHAT ARE THE FAILINGS, IF ANY, WITHIN THE PRESENT SYSTEM, AND THEN I WILL BE MAKING RECOMMENDATIONS AS TO WHAT WE SHOULD BE PUTTING INTO PLACE IN THE WAY OF HARDWARE AND SOFTWARE, TO ENHANCE OUR PRESENT CAPABILITY.

FS:

THANK YOU VERY MUCH.

--------0 ----------

/12 ........

THURSDAY, MARCH 4, 1993

12

TRANSCRIPT OF FINANCIAL SECRETARY’S RADIO PHONE-IN PROGRAMME ON RTHK

******

KIT CUMMINGS: WE WELCOME INTO OUR STUDIO NOW HAMISH MACLEOD, THE FINANCIAL SECRETARY WHO WILL BE WITH US FOR THE NEXT HOUR. HE WILL BE ANSWERING QUESTIONS FROM LISTENERS BOTH TO ENGLISH SERVICE HERE ON RADIO 3, PART OF HONG KONG TODAY AND ALSO TO RADIO 1 AND WE’LL BE JOINED NOW BY CHAN YIU-WAH, THE PRESENTER ON RADIO 1 OF THE EQUIVALENT SORT OF PROGRAMME, YOU CAN CALL IN ON THE ENGLISH LINE ON 3388266 TO ASK A QUESTION DIRECTLY TO MR MACLEOD AND I HAND YOU OVER NOW TO CHAN YIU-WAH.

CHAN: WELL GOOD MORNING I AM CHAN YIU-WAH. FROM 7.45 TO 8.45 MR MACLEOD WILL BE TAKING QUESTIONS DIRECTLY FROM THE AUDIENCE. LET ME REMIND YOU OF THE TELEPHONE NUMBER, 1872311.

CUMMINGS: WE HAVE A QUESTION NOW FROM AN ENGLISH CALLER. GOOD MORNING TO YOU, WOULD YOU LIKE TO PUT YOUR QUESTION TO MR MACLEOD NOW.

QUESTION: GOOD MORNING MR MACLEOD, ROGER THOMAS HERE. I’D LIKE TO DIRECT A BRIEF COMMENT AND A QUESTION DEALING REALLY WITH THE TOURIST AREA. MAY I SAY I VERY MUCH ENDORSE YOUR HELP TOWARDS THE HONG KONG TOURIST ASSOCIATION, NEW BUILDING IN THE CONVENTION CENTRE. I THINK THE REDUCTION IN TAX ON PERFUME WILL BE VERY MUCH WELCOMED BY RETAILERS HERE IN HONG KONG. HOWEVER, I AM VERY, VERY DISAPPOINTED, I WOULD LIKE TO KNOW WHY YOU HAVE NOT REMOVED ANYTHING FROM DEPARTURE TAX WHICH DOESN’T JUST HIT TOURISTS WHICH IS THE OLD ARGUMENT, IT DOES HIT A LOT OF OUR REGULAR BUSINESSMEN AND TAGGED IN WITH THAT, ANOTHER POINT ABOUT THE AIRPORT, WHY OH WHY HAVE YOU LEFT THOSE SILLY RESTRICTIONS ON THE ALLOWANCE OF ALCOHOL AND CIGARETTES WHICH ORDINARY RESIDENTS CAN BRING BACK INTO HONG KONG?

FS: GOOD MORNING. I DID DEVOTE QUITE A LOT OF THE SPEECH TO TOURISM AS YOU SAY, I VALUE THE CONTRIBUTION OF THE TOURIST INDUSTRY. THE DEPARTURE TAX, I DID LOOK AT IT, I FELT THAT LEAVING IT AS IT WAS AND NOT INCREASING IT WAS A SMALL CONTRIBUTION, THE REAL COST OF COURSE WILL GO DOWN. IT ALSO MAY HAVE SOME RELEVANCE TO FUNDING OF THE NEW AIRPORT AND IN CASE IT DOES I’D RATHER JUST LEAVE IT AS IT IS AT THE MOMENT. I THINK THE ALCOHOL AND CIGARETTE RULES ARE BASICALLY ABOUT AVOIDING ABUSE OF THE RULES. YOU WILL REMEMBER THAT WE HAD A LARGE AMOUNT OF ALCOHOL AND TOBACCO BEING TAKEN TO AND FRO ACROSS THE BORDER BY OLD LADIES, AND THAT WAS PRODUCING QUITE A LARGE LOOPHOLE IN OUR SYSTEM, THAT’S BASICALLY THE PROBLEM.

QUESTION: ISN’T THAT A SLEDGE HAMMER TO CRACK A NUT THOUGH, BECAUSE AN INTERNATIONAL AIRPORT IS A SLIGHTLY DIFFERENT SCENE, YOU CAN CONTROL IT IN A VERY DIFFERENT WAY AND IT DOES SEEM FAIRLY FOOLISH AT OUR AIRPORT?

FS: YES PERHAPS. I MUST SAY IT WASN’T A POINT PUT TO ME AS I RECALL BY ANYONE, SO I DON’T THINK IT’S A HOT SUBJECT.

/AND FINAL .......

THURSDAY, MARCH 4, 1993

- 13

QUESTION: AND FINAL POINT, FUEL. I’M A LITTLE CONCERNED THAT YOU’VE PUT ADDITIONAL TAX ON FUEL BECAUSE SURELY WITH THE TREMENDOUS AMOUNT OF DELIVERY IN THE RETAIL INDUSTRY HERE AND WITHIN THE TOURIST INDUSTRY, BASICALLY THAT’S GOING TO BE PASSED ON DOWN THE LINE AND CERTAINLY IN THAT SENSE IS INFLATIONARY.

FS: YES, I’M QUITE SENSITIVE TO FUEL. LAST YEAR OF COURSE WE DID REMOVE THE FUEL TAX FOR THE BUS COMPANIES TO HELP THE NORMAL PASSENGER AND I’VE RESTRICTED THOSE INCREASES, THE FUEL AND THE ALCOHOL AND THE CIGARETTES, SIMPLY TO A COST OF LIVING INCREASE.

CUMMINGS: WELL, THANK YOU TO THAT CALLER ON 3388266.

QUESTION: GOOD MORNING. I'VE LISTENED TO THE BUDGET BEING DELIVERED BY THE FINANCIAL SECRETARY. THE SURPLUS WILL BE $20.5 BILLION. I’VE EVIDENCE TO SHOW THAT THIS AMOUNT IS NOT TRUE, THIS IS MISLEADING. I WILL SHOW MY EVIDENCE. FOR THIS $20.5 BILLION, I THINK IT IS ACHIEVED AT THE EXPENSE OF THE WORKING CLASS IN HONG KONG. FOR EXAMPLE LAST YEAR I HEARD COMMENTS TO THE EFFECT THAT CIVIL SERVICE UNIONS OPPOSED THE ARRANGEMENTS WHERE THEIR PAY INCREASE WAS NOT GOOD ENOUGH, THERE WAS A REDUCTION OF 3 PER CENT, SO IN TOTAL THE CIVIL SERVANTS WERE UNDERPAID TO THE TUNE OF $500 MILLION.

CUMMINGS: WELL LET’S LISTEN TO THE RESPONSE FROM THE FINANCIAL SECRETARY. YOU HAVE SUGGESTED THAT THE $20.5 BILLION MIGHT NOT HAVE BEEN ACCURATELY ARRIVED AT, FINANCIAL SECRETARY.

FS: WELL, I CAN’T ACCEPT YOUR COMMENT. I THINK WE’VE MADE IT VERY CLEAR WHERE THE EXTRA MONEY CAME FROM. ABOUT HALF OF IT WAS FROM INCREASED REVENUE FROM THINGS LIKE STAMP DUTY ON THE STOCK MARKET, FIRST REGISTRATION TAX ON AUTOMOBILES AND PROFITS TAX. I DON’T THINK ANY OF THAT COULD BE REGARDED AS, IN ANY WAY, ADVERSELY AFFECTING THE WORKING POPULATION OF HONG KONG. THE OTHER HALF OF COURSE WAS UNFORTUNATELY UNDERSPENDING ON SOME CAPITAL PROJECTS WHICH CERTAINLY I AM NOT HAPPY ABOUT BUT AGAIN I DON’T THINK THAT IS IN ANY WAY DEALING WITH THE WORKING POPULATION, SO I DON’T ACCEPT THAT AT ALL. 20.5 IS OUR BEST POSSIBLE ESTIMATE OF THE FIGURE AND I THINK THE REASONS FOR IT I’VE SET OUT RATHER CLEARLY IN THE BUDGET.

CUMMINGS: AND WE HAVE AN ENGLISH QUESTION NOW. GOOD MORNING.

QUESTION: HELLO.

CUMMINGS: YES HELLO, WOULD YOU LIKE TO PUT YOUR QUESTION TO THE

FINANCIAL SECRETARY?

QUESTION: GOOD MORNING STR. I WOULD LIKE TO QUESTION ABOUT THE

BANKS YOU KNOW, WHENEVER WE DEPOSIT THE CASH, SAY $20,000, THEY ARE ASKING SOME SERVICE CHARGES, QUARTER PER CENT, HALF PER CENT.

FS: THE BANK CHARGES, I’M NOT QUITE SURE ON THE QUESTION THERE. I

DIDN’T ACTUALLY DEAL WITH BANK CHARGES IN MY BUDGET.

/QUESTION .......

14

THURSDAY, MARCH 4, 1993

QUESTION: NO, BUT I DO UNDERSTAND THAT THAT CONCERN THE ECONOMY AND BUSINESSMEN, YOU KNOW, IN THE BUSINESS COMMUNITY. I HAVE BEEN PRESSING THIS MATTER TO MR (INAUDIBLE) BUT NOBODY IS COMING FORWARD WITH SOME ANSWERS OR SOLUTIONS.

FS: WELL, I’M VERY HAPPY IF WE CAN TAKE YOUR NUMBER WE CAN GET BACK TO YOU WITH AN ANSWER AND EXPLORE WITH YOU &HAT THE PRECISE PROBLEM IS, I’D BE HAPPY TO DO THAT.

CUMMINGS: AND IF WE COULD CONFINE OURSELVES I THINK TO WHAT IS IN THE BUDGET RATHER THAN EXTRANEOUS MATTERS TO DO WITH THE BANKS.

CHAN: WELL A REMINDER TO THE AUDIENCE. WE HAVE NOW A SIMULTANEOUS BROADCAST ON RADIO 1, RADIO 3 AND RADIO 5. THE PROGRAMME IS THE FINANCIAL SECRETARY’S BUDGET PHONE-IN. CALLERS SHOULD CALL 1872311 SO THAT YOU CAN PUT QUESTIONS DIRECTLY TO THE FINANCIAL SECRETARY ON THE BUDGET DELIVERED YESTERDAY IN LEGCO. WELL ANOTHER QUESTION FOR THE FINANCIAL SECRETARY FROM MYSELF. NOW THE BUDGET WAS ANNOUNCED YESTERDAY AND SOME LEGCO MEMBERS CRITICISED YOUR BUDGET AS VERY GENEROUS, NOW THE SURPLUS THIS YEAR ROUND IS VERY SIMILAR TO THAT LAST YEAR, WHY IS IT THAT IT IS REGARDED AS GENEROUS THIS YEAR BUT NOT LAST YEAR?

FS: YES, I MUST SAY TALKING TO LEGCO MEMBERS AFTER MY SPEECH I FOUND THEM PRETTY SUPPORTIVE OF THE THRUST OF THE SPEECH. I SUSPECT THAT THERE’S AN ATTEMPT TO FIND SOMETHING CRITICAL TO SAY BECAUSE YOU WILL REMEMBER THAT LAST YEAR I CAME UNDER PRESSURE TO SPEND MORE. THIS YEAR I HAVE SPENT MORE AND I THINK ACTUALLY THAT HAS GENERAL SUPPORT FROM LEGCO MEMBERS AND OF COURSE THE SURPLUS THIS YEAR WAS GREATER THAN ...

CHAN: SO YOU FORMULATE YOUR BUDGET UNDER PRESSURE, IS THAT THE CASE?

FS: NO, I DON’T FORMULATE THE BUDGET UNDER PRESSURE BUT I CERTAINLY WANT TO BE RESPONSIVE TO THE VIEWS OF THE COMMUNITY AND THOSE VIEWS AS EXPRESSED THROUGH LEGCO MEMBERS, THAT’S PART OF THEIR ROLE.

CUMMINGS: PERHAPS I CAN ASK YOU A QUESTION MR MACLEOD. TALKING ABOUT PRESSURE, THERE’S ALWAYS A CERTAIN AMOUNT OF PRESSURE FROM CHINA. SO FAR I DON’T THINK THERE IS ANY REAL EVIDENCE THAT THERE’D BEEN GREAT PRESSURE ON THE BUDGET BUT THE ARGUMENT COULD, OF COURSE, BE PUT THAT ANYTHING THAT IS DONE NOW IN THE WAY OF REVENUE EXPENDITURE PROPOSALS HAVE AN IMPACT BEYOND 1997, OF COURSE THEY DO. ARE YOU CONCERNED AT LOOKING ACROSS THE BORDER AND WONDERING ALL THE TIME WHAT CHINA WILL MAKE OF WHATEVER YOU ARE DOING?

FS: WELL, THIS IS A HONG KONG BUDGET MADE IN HONG KONG FOR HONG KONG, SO WE DON’T OF COURSE CONSULT EITHER UK OR CHINA ON IT. BUT I WOULD HAVE THOUGHT THAT CHINA AT LEAST, IF THEY ARE LOOKING AT THE BUDGET, WOULD LOOK AT THE FORECAST RESERVES IN 1996/97, WHICH AFTER ALL ARE GOING UP. THAT WOULD SEEM TO BE A POSITIVE DEVELOPMENT FROM THEIR POINT OF VIEW, UP TO $78 BILLION.

CUMMINGS: SO THERE’S NO TRUTH TO THE SUPPOSITION THAT BRITAIN HAVING NO RESPONSIBILITY BEYOND 1997 IS ENCOURAGING YOU JUST TO GIVE AWAY THE FARM?

/FS ........

THURSDAY, MARCH 4, 1993

15

FS: ABSOLUTELY NOT. I MEAN NORMALLY I’M CRITICISED FOR THE REVERSE,

FOR BEING TOO CAUTIOUS AND TOO PRUDENT SO IT’S A DELIGHTFUL CHANGE TO BE ACCUSED OF SPENDING TOO MUCH MONEY, BUT WHAT I’VE TRIED TO REASSURE PEOPLE IS THAT WE ARE KEEPING CONTROL OF RECURRENT EXPENDITURE. WE ARE KEEPING RECURRENT EXPENDITURE TO A GROWTH OF 5 PER CENT A YEAR. I THINK THAT’S WHAT PEOPLE WANT TO KNOW. WE HAVE MORE SCOPE ON NONRECURRENT, ON CAPITAL EXPENDITURE, WHICH AFTER ALL HAS A FINITE END TO IT.

CHAN: I THINK WE’RE ALL FAMILIAR ABOUT THE EXPENDITURE ESTIMATES.

NOW WE HAVE A CALLER, MR CHOY, GOOD MORNING.

QUESTION: GOOD MORNING. I HAVE THREE POINTS TO MAKE AND I HOPE THE

FINANCIAL SECRETARY WILL RESPOND TO IT.

CHAN: PLEASE DO IT POINT BY POINT.

QUESTION: O.K. FIRST POINT, ABOUT THE TAX ALLOWANCES. NOW IT’S

BEEN INCREASED FROM $46,000 TO $56,000 BUT USUALLY THAT MEANS IF YOU HAVE AN AVERAGE WAGES OF $5,000 A MONTH YOU WOULD BE INCLUDED IN THE TAX NET AND I’M NOT HAPPY ABOUT THAT BECAUSE LAST YEAR WE HAVE ASKED FOR RAISING THE TAX ALLOWANCE TO $75,000, SO WHY SUCH A SMALL INCREASE, WE ARE RATHER DISAPPOINTED AND WE CAN FEEL THE PRESSURE ON US?

CHAN: SO THE FIRST QUESTION IS ABOUT THE TAX ALLOWANCE BEING RAISED FROM $46,000 AND THE INCREASES, THE DISAPPOINTMENT, MR MACLEOD.

FS: WELL I’M RATHER AMAZED TO HEAR IT DESCRIBED AS A SMALL INCREASE. I THINK YOU HAVE TO REMEMBER TO LOOK AT NOT JUST WHAT HAPPENS TO THE TAX ALLOWANCE OR WHAT HAPPENS TO THE TAX BANDS AND WHAT HAPPENS TO THE OTHER ALLOWANCES AND THE COMBINED EFFECT OF THOSE CONCESSIONS IS THAT THE COST OF THOSE CONCESSIONS IS THREE TIMES WHAT IT WOULD HAVE COST TO GIVE A SIMPLE INFLATION INCREASE IN THE TAX ALLOWANCE, SO IT’S THREE TIMES WHAT WOULD BE NECESSARY TO KEEP UP WITH INFLATION AND THE EFFECT ON THE NORMAL FAMILY IS ACTUALLY RATHER SIGNIFICANT. YOU PROBABLY KNOW ALREADY THAT MORE THAN HALF THE WORKING POPULATION PAY NO SALARIES TAX WHATSOEVER BUT THE EFFECT OF THE CHANGES IS THAT A, WHAT’S CALLED A SANDWICH CLASS FAMILY EARNING $18,000 A MONTH, A MARRIED COUPLE WITH TWO CHILDREN, THEIR TAX BILL WILL BE CUT BY OVER 50 PER CENT, I DON’T CALL THAT A SMALL CHANGE. I THINK IT’S A VERY SIGNIFICANT CHANGE, I DON’T RECALL SUCH TAX CUTS FOR MANY YEARS IN THE PAST, I THINK IT’S WELCOMED BY MOST PEOPLE.

CHAN: MR CHOY YOUR SECOND QUESTION.

QUESTION: NOW I THINK I WILL STILL RESPOND TO FS, I’M NOT STILL HAPPY. ANYWAY THE SECOND POINT, NOW I SEE THAT THE FS IS TRYING VERY HARD TO CONTROL SPECULATION ACTIVITIES BUT STILL THERE IS NO SIGN OF A CAPITAL GAINS TAX COMING IN BECAUSE THAT CAN HELP TO CURB SPECULATION, WHY NOT?

/FS ........

16

THURSDAY, MARCH 4, 1993

FS: I’M VERY CAUTIOUS ABOUT NEW TAXES. I BELIEVE THAT AS FAR AS POSSIBLE WHAT HONG KONG NEEDS IS NOT TOO MUCH INNOVATION IN THE TAX AREA AND THAT’S WHAT I’M GIVING THEM. I THINK WE NEED TO LOOK VERY CAREFULLY BEFORE WE INTRODUCE ANY NEW TAXES. I’M AWARE OF THE SUGGESTION OF CAPITAL GAINS TAX. AT THE MOMENT I’M NOT CONVINCED THAT THERE’S A CASE FOR IT. I'M TRYING TO DO THE OPPOSITE, I’M TRYING TO REDUCE THE NUMBER OF TAXES, NOT INCREASE THEM.

CUMMINGS: OUR TELEPHONE NUMBER ON THE ENGLISH SIDE IS 3388266 AND WE’RE TALKING TO HAMISH MACLEOD. IT’S A BILINGUAL PRESENTATION, IT’S OBJECTIVE IS FOR YOU TO ASK YOUR QUESTIONS TO HIM AND WE DO HAVE A QUESTION NOW ON THE LINE. GOOD MORNING TO YOU.

QUESTION: GOOD MORNING.

CUMMINGS: YES, YOU’RE SPEAKING TO MR MACLEOD.

QUESTION: GOOD MORNING MR MACLEOD. YOU MENTIONED INFLATION AS A NECESSARY PRICE THAT HAS TO BE PAID ALTHOUGH OBVIOUSLY BETTER THAN THE DEPRESSED CONDITION OF THE ECONOMIES IN MOST OF THE REST OF THE WORLD, HOWEVER THERE SEEMS TO BE A FAIRLY SIMPLE SOLUTION WHICH THE GOVERNMENT DOESN’T SEEM TO HAVE DONE MUCH ABOUT. WILL YOU AGREE THAT THE PRINCIPAL CAUSE OF INFLATION IS FULL EMPLOYMENT AND THEREFORE THE WAGE PRESSURE?

FS: YES, I THINK IT’S TRUE THAT IF ONE WERE LOOKING AT IT SIMPLY AS AN ECONOMIST THEN THE TWO PRIME CAUSES, OR THE TWO PRIME FACTORS, WHICH WE COULD ADJUST TO DEAL WITH INFLATION ARE THE SUPPLY OF LABOUR AND THE SUPPLY OF LAND, WHICH I’VE TOUCHED ON IN MY BUDGET, BUT I THINK IT’S ALSO TRUE THAT IN THE REAL WORLD THERE’S A LIMIT TO HOW FAR WE CAN GO IN IMPORTING LABOUR. I’M AWARE THAT SOME OTHER PLACES HAVE GONE MUCH FURTHER THAN WE HAVE BUT THE JUDGEMENT AT THE MOMENT IS THAT WE HAVE TO BALANCE OFF THE GOOD EFFECT ON INFLATION OF IMPORTING LABOUR AGAINST THE EFFECT ON OUR EXISTING WORKFORCE AND THAT’S WHAT WE’RE ATTEMPTING TO DO, BUT YOU’RE RIGHT IT’S A KEY FACTOR.

CUMMINGS: WELL WE CONTINUE NOW, PERHAPS WITH ANOTHER QUESTION ABOUT INFLATION MR MACLEOD. YOU SEEM TO TAKE A SLIGHTLY AMBIVALENT ATTITUDE TOWARDS IT IN YOUR SPEECH, YOU’RE SAYING THAT YES INFLATION IS AN UNFORTUNATE THING TO HAVE IN AN ECONOMY, WE’VE HAD IT FOR A WHILE BUT ON THE OTHER HAND THE OTHER SIDF. OF THAT COIN IS THAT YOU COULD OF COURSE BATTLE IT AND THEN HAVE BANKRUPTCIES AND UNEMPLOYMENT, BUT TAKEN IN GENERAL THAT THE INFLATION IS THE LESSER OF TWO EVILS. CAN YOU EXPAND ON THAT A LITTLE?

FS: YES, I THINK SOMETIMES THERE’S A TENDANCY FOR PEOPLE TO THINK YOU CAN TACKLE INFLATION WITHOUT ANY AS IT WERE COSTS OR DOWNSIDES AND THAT NORMALLY ISN’T THE CASE. IF YOU STUDY COUNTRIES WHERE THEY’VE ERECTED COMBATING INFLATION AS THE NUMBER ONE TARGET, THEN YOU HAVE NORMALLY SEEN COSTS IN THE FORM OF UNEMPLOYMENT AND LOWER ECONOMIC GROWTH, SO ONE HAS TO BALANCE THOSE OFF. THAT’S THE PROBLEM, THERE’S NO COST-FREE SOLUTION.

CUMMINGS: BUT IN A WAY, YOU KEEP SAYING THAT WE’RE HOSTAGE TO OUR OVERSEAS MARKETS, THAT WOULD OBVIOUSLY BE AMERICA, GERMANY, JAPAN ETC, AND YET THEY HAVE HAD BAD TIMES FOR SO LONG, SEVERAL YEARS NOW AND YET WE DON’T SEEM TO BE AFFECTED, AND IN A WAY YOU’RE CRYING WOLF PERHAPS.

/FS ........

THURSDAY, MARCH 4, 1993

17

FS: WELL, ACTUALLY THE MAIN MARKET OF COURSE THAT I’VE BEEN ALERTING PEOPLE TO IS REALLY CHINA AND THE US AND THE MFN ISSUE RATHER THAN WHAT MAY BE HAPPENING IN PLACES LIKE EUROPE. THE MAIN DOWNSIDE RISK IS THAT THE MFN ISSUE WILL NOT BE RESOLVED IN A SATISFACTORY WAY. AS FAR AS OTHER MARKETS ARE CONCERNED, ACTUALLY I’M FAIRLY OPTIMISTIC ABOUT THE US ECONOMY BUT EUROPE’S PRETTY FLAT, SO THE MAIN SOURCE OF OUR GROWTH AND OF OUR OPTIMISM IS ACTUALLY CHINA AND ASIA.

QUESTION: NOW A QUESTION FOR MR MACLEOD ABOUT INFLATION. YOU SAY IT IS HARD TO TACKLE INFLATION. NOW THERE ARE SOME ECONOMISTS WHO SAY THAT WITH REGARD TO THE HUGE EXPENDITURE PROPOSED AND TAX-CONCESSIONS, IT WILL ONLY ADD TO INFLATION, BUT IN THE BUDGET THERE ARE NOT ANY CONCRETE PROPOSALS TO TACKLE INFLATION, SO HOW DO YOU VIEW THAT?

FS: I THINK WE HAVE BEEN VERY FRANK OVER THE YEARS ABOUT INFLATION, THERE IS NO EASY SOLUTION TO INFLATION, THAT IS THE FACT. WHAT WE HAVE BEEN DOING IS, BIT BY BIT DEALING WITH PARTICULAR PROBLEMS AS WE CAN. FOR INSTANCE, I WOULD TAKE THE HOUSING ISSUE WHERE WE HAVE MANAGED, PARTLY THROUGH STAMP DUTY, PARTLY THROUGH CONTROLS ON CREDIT, TO BRING HOUSE PRICES OR FLAT PRICES DOWN FROM THEIR PEAK. WE HAVE A PROGRAMME FOR IMPORTING LABOUR WHICH HAS SOME EFFECT. WE HAVE AN ADDITIONAL PROGRAMME FOR IMPORTING CONSTRUCTION LABOUR FOR THE AIRPORT PROJECTS. ALL THOSE HELP, BUT WE HAVE TO FACE THE FACT THAT THIS IS PART OF THE PRICE OF OUR SUCCESS. WE HAVE A HEAVY DEMAND, PARTICULARLY ON OUR SERVICE SECTOR, PARTLY STEMMING FROM OUR OWN SUCCESS IN INVESTING IN CHINA, AND WE MUST CONTINUE TO DO WHAT WE CAN, BUT THERE IS NO MAGIC SOLUTION IN THE BUDGET, ANY MORE THAN THERE WAS IN THE LAST BUDGET.

QUESTION: GOOD MORNING, FINANCIAL SECRETARY. I HAVE A QUESTION TO ASK YOU. YESTERDAY, AT LEGCO, YOU SAID THAT BY JULY, PUBLIC ASSISTANCE AND DISABILITY ALLOWANCES WOULD BE INCREASED SO THAT FOR A SINGLE PERSON HE WOULD RECEIVE ON AVERAGE $2,000. WHAT DO YOU MEAN BY $2,000 PER HEAD ON AVERAGE? SO IT IS ABOUT CALCULATION OF PUBLIC ASSISTANCE. SO ON AVERAGE $2,000 PER PERSON, WHAT DO YOU MEAN BY THAT? ALSO, I WOULD LIKE TO KNOW, FOR A SINGLE PERSON, NOW THE RATE IS $825, SO BY JULY, ACCORDING TO YOUR VIEW, WHAT WOULD BE THE ADJUSTMENT, HOW MUCH WOULD IT BE AFTER ADJUSTMENT THAT IS? SO ABOUT PUBLIC ASSISTANCE, MR MACLEOD, CAN YOU TAKE THAT UP?

FS: YES. WHAT IS HAPPENING ON PUBLIC ASSISTANCE IS TWO THINGS. FIRST OF ALL THERE IS THE NORMAL INFLATION INCREASE WHICH WILL BE COMING UP IN THE NEXT FEW WEEKS, AND THEN ADDED ON TO THAT IS A REAL INCREASE IN THE RATES WHICH WAS ANNOUNCED IN THE GOVERNOR’S SPEECH AND WHICH WILL COME INTO EFFECT IN JULY THIS YEAR. SO TAKING THOSE TWO TOGETHER, THE AVERAGE PAYMENT FOR A SINGLE PERSON WILL BE $2,000. AVERAGE SIMPLY MEANS AVERAGE. AS YOU KNOW, RECIPIENTS RECEIVE NOT ONLY A BASIC RATE BUT ALSO A NUMBER OF ALLOWANCES, FOR EXAMPLE, THEY RECEIVE SOMETHING FOR THEIR RENT, SO WE HAVE SIMPLY TAKEN THE AVERAGE PAYMENT. THAT IS ENTIRELY FAIR BECAUSE WE HAVE CHECKED THAT ONLY ABOUT ONE PER CENT OF RECIPIENTS RECEIVE THE BASIC RATE ALLOWANCE WITH NOTHING ELSE ADDED. THAT IS WHY WE ARE NOW CALLING IT "COMPREHENSIVE" PAYMENT, BECAUSE IT IS QUITE MISLEADING TO CONDUCT A DEBATE ON THE BASIS OF THE BASIC RATE. THE AVERAGE PAYMENT FOR A FAMILY OF FOUR WOULD BE $5,880 --

/QUESTION .......

THURSDAY, MARCH 4, 1993

18

QUESTION: THAT IS NOT FAIR, WHAT I AM SAYING IS, LET’S SAY A PERSON WHO IS RECEIVING $825 A MONTH, AFTER ADJUSTMENT HOW MUCH WILL HE RECEIVE, THAT IS MY QUESTION?

FS: IT IS DIFFICULT TO ANSWER YOUR QUESTION IN ANY OTHER WAY

THAN TO SAY THAT THE AVERAGE PAYMENT WILL BE $2,000, BECAUSE WE ARE DEALING HERE WITH LARGE NUMBERS OF PEOPLE AND A RANGE OF PAYMENTS. IT SEEMS TO ME ENTIRELY FAIR, IF WE ARE GENERALISING ON THE FIGURE, TO USE AN AVERAGE PAYMENT.

QUESTION: YES, INDEED, I WOULD LIKE TO GO ON. WHY IS IT THAT WE HAVE TO PAY PROVISIONAL TAX? ASSUMING THAT I DO NOT MAKE AS MUCH MONEY NEXT YEAR, WHAT CAN I DO?

FS: WELL, I THINK HERE WE ARE QUITE FORTUNATE TO HAVE A LOW TAX RATE WITH ONLY ABOUT 50 PER CENT OF THE WORKING FORCE PAYING TAX AT ALL. I DON’T SEE ANY OTHER WAY OF DOING THE TAXATION THAN THE WAY WE DO IT, UNLESS WE HAD A SYSTEM WHERE YOU PAID EVERY MONTH, AND I BELIEVE THAT WOULD BE QUITE CUMBERSOME AND NOT PARTICULARLY WELCOME TO EITHER EMPLOYEES OR EMPLOYERS. SO AT THE MOMENT WE HAVE TO DO IT BY AN ANNUAL PAYMENT AND THAT PAYMENT HAS TO BE BASED ON AN ESTIMATE.

QUESTION: GOOD MORNING, FINANCIAL SECRETARY. FIRST, IN THIS YEAR’S BUDGET, IT IS INDEED A VERY GOOD BUDGET, PARTICULARLY TO THE MIDDLE AND LOW INCOME GROUPS, IT SEEMS THAT WE ARE GIVEN AN AMNESTY. WHY IS IT THAT THE BUDGET WAS RATHER TIGHT IN THE PAST TWO YEARS? WE WERE ALMOST STIFLED. DOES IT MEAN THAT THOSE TWO BUDGETS WERE NOT GOOD ONES? THAT IS THE FIRST QUESTION.

FS: THANK YOU FOR YOUR KIND REMARKS. I SUPPOSE THAT EACH BUDGET, WE HAVE TO LOOK AT THE SITUATION WHICH FACES US AND OF COURSE THIS YEAR WE HAVE HAD A COMBINATION OF TWO THINGS. FIRST OF ALL, WE HAD A HIGHER SURPLUS THAN WE EXPECTED FOR THIS YEAR. SECONDLY, AND PERHAPS AS IMPORTANTLY, OUR ECONOMIC GROWTH CONTINUES TO PICK UP VERY WELL, WE ARE NOW FORECASTING 5.5 PER CENT FOR 1993. SO THE COMBINATION OF THOSE TWO THINGS HAS MEANT THAT WE CAN INCREASE SPENDING AND STILL HAVE RESERVES WHICH ARE INCREASING IN TERMS OF ’96-’97.

QUESTION: MY SECOND QUESTION NOW. COSMETICS TAX AND ENTERTAINMENT TAX WILL BE REMOVED, WHY IS IT THAT TAX ON FUEL WILL BE INCREASED? WILL THAT LEAD TO AN INCREASE IN FARES ON PUBLIC TRANSPORT, IS THAT THE CASE?

FS; I HAVE BEEN VERY CAREFUL ON THE THREE TAXES WHICH WE DID INCREASE SIMPLY TO RESTRICT IT TO COST OF LIVING. THERE IS NO REAL INCREASE IN THOSE TAXES, IT SIMPLY KEEPS IT UP WITH INFLATION, SO I AM HOPEFUL THAT THAT WILL NOT HAVE MUCH EFFECT ON FARES. ALSO, YOU MAY REMEMBER THAT LAST YEAR WE REMOVED FUEL TAX SO FAR AS IT AFFECTS BUSES, SO THAT SHOULD NOT AFFECT BUS-FARES.

CUMMINGS: CAN I PICK UP A MORE NEGATIVE SIDE OF IT. PEOPLE HAVE SAID: VERY NICE, THE MIDDLE CLASS, THE SANDWICH CLASS, THE SALARIES TAX PAYERS AND SO ON, HAVE GOT A GOOD BREAK, BUT THERE IS NO BREAK AT ALL FOR BUSINESS.

/FS.........

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THURSDAY, MARCH 4, 1993

FS: WELL, THERE IS A BREAK FOR BUSINESS BUT IT DOESN’T COME IN THE FORM OF A CHANGE IN PROFITS TAX. WE ARE, AFTER ALL, SPENDING A LOT OF MONEY ON WHAT YOU MIGHT CALL, HARD AND SOFT INFRASTRUCTURE. THINGS LIKE ROUTE THREE, THE EXPANSION OF THE CONVENTION CENTRE, THOSE THINGS ACTUALLY BENEFIT BUSINESS, THEY BENEFIT THE ECONOMY, THEY MAKE US MORE EFFICIENT. 1 THINK THERE IS ACTUALLY QUITE A LOT IN THIS BUDGET FOR BUSINESS. I HAVE ALSO SUGGESTED THAT IF OUR TALKS WITH THE TRADE DEVELOPMENT COUNCIL GO WELL, THERE MAY BE SOME SCOPE FOR REDEPLOYING FUNDS TO INDUSTRY THROUGH THE RELEVANT COMMITTEE, FOR THINGS LIKE RESEARCH AND DEVELOPMENT.

CUMMINGS: DID YOU PUT ANY HARD THOUGHT INTO WHETHER YOU MIGHT BE ABLE TO KNOCK A PERCENTAGE POINT OR SOMETHING OFF THE PROFITS TAX?

FS: I DID GIVE THOUGHT TO THAT AND CERTAINLY THERE WERE SOME REPRESENTATIONS THAT WE SHOULD CUT IT BACK AGAIN, BUT IT WOULD HAVE MEANT I HAD LESS SCOPE FOR OTHER CONCESSIONS AND I DECIDED THAT THERE WASN’T ACTUALLY A GREAT NEED TO REDUCE PROFITS TAX AT THIS TIME. I DID SIGNAL LAST YEAR THAT I DON’T HAVE ANY AGENDA FOR GOING ON AND ON INCREASING PROFITS TAX, I THINK IT IS PROBABLY ABOUT RIGHT AT THE MOMENT, SO I HAVE LEFT IT THERE.

QUESTION: MY NAME IS PHIL BLACK, MR MACLEOD, MY QUESTION REFERS TO THE FUNDING FOR URBAN RENEWAL IN HONG KONG. OBVIOUSLY, IT IS A VERY COMPLEX PROBLEM HERE, AND THE BOTTOM LINE FOR URBAN RENEWAL IS OBVIOUSLY THAT SOME FORM OF GOVERNMENT SUPPORT IN THE FORM OF FINANCIAL SUBSIDIES, MAINLY THROUGH THE PROVISION OF LAND, IS REQUIRED TO FACILITATE URBAN RENEWAL, THROUGH AGENCIES SUCH AS LDC AND THE HONG KONG HOUSING SOCIETY. I NOTE THAT YOU HAVE MADE SPECIFIC ALLOCATION TO THE HONG KONG HOUSING SOCIETY TO HELP WITH THE SANDWICH CLASS AND MY QUESTION IS: WAS THERE ANY APPROACH TO YOU IN A MORE GENERAL FORM, TO MAKE SPECIFIC ALLOCATION OF GOVERNMENT FUNDS FOR URBAN RENEWAL?

FS: NO, I DON’T THINK THAT THERE WAS ANY GREAT PRESSURE ON THAT. AS FAR AS I KNOW, THE LDC (THE LAND DEVELOPMENT CORPORATION) IS ADEQUATELY FUNDED AT THE MOMENT, I AM NOT AWARE OF ANY PARTICULAR NEED TO PUMP MORE FUNDS INTO IT, SO THAT PARTICULAR SCHEME SEEMS TO BE GOING QUITE WELL.

QUESTION: I AM ACTUALLY TALKING A LITTLE BIT WIDER THAN LDC, IN THE SAME WAY THAT GOVERNMENT FUNDED THE "NEW TOWNS PROGRAMME", I’M SORT OF LOOKING AT WHY, FOR INSTANCE THE FINANCE BRANCH IN PARTICULAR HAVE NOT SET UP A SPECIAL FUND, AN "URBAN RENEWAL FUND" IF YOU LIKE, THAT WILL BE OBVIOUSLY A RECURRENT EXPENDITURE, TO FACILITATE WIDER URBAN RENEWAL THROUGH ANY OF THE CURRENT AGENCIES?

FS: WELL, OF COURSE OUR PHILOSOPHY WOULD STILL TEND TO BE THAT AS FAR AS POSSIBLE THAT SHOULD BE DONE BY THE PRIVATE SECTOR, AND IN FACT THE MAJORITY OF, FOR INSTANCE NEW HOUSING COMING ON STREAM, PRIVATE HOUSING, IS FROM REDEVELOPMENT RATHER THAN FROM NEW ESTATES OUT IN THE NEW TERRITORIES, SO I THINK THAT IS MAKING A CONTRIBUTION.

QUESTION: I WOULD LIKE TO ASK A QUESTION ON FUEL TAX. IF FUEL TAX IS REDUCED THEN IT WELL HELP TO CURB INFLATION. DOES THE FINANCIAL SECRETARY ACCEPT THAT?

/FS ........

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THURSDAY, MARCH 4, 1993

FS: YES, I THINK IT IS TRUE THAT ON A RANGE OF TAXES LIKE FUEL TAX IT SLIGHTLY HELPS INFLATION AS MEASURED BY CPIA, THAT IS TRUE.

QUESTION: ANOTHER QUESTION, ON PROFITS TAX. I WONDER IF IT CAN BE REDUCED BY TWO PER CENT? IT WILL HELP TO STIMULATE OUR ECONOMY AND ALSO IT WILL HELP EMPLOYMENT. WELL, THERE WAS A SIMILAR QUESTION A MOMENT AGO. I WONDER IF THAT CAN BE REDUCED BY TWO PER CENT?

FS: I THINK THE PROBLEM IS THAT THAT WOULD BE, FRANKLY, RATHER EXPENSIVE, AND IN LOOKING AT PRIORITIES FOR CONCESSIONS I DIDN’T THINK THAT PROFITS TAX SHOULD BE A PRIORITY. THERE IS, ALSO, SOMETHING OF A DEBATE AT THE MOMENT ABOUT THE RELATIVE CONTRIBUTIONS OF PROFITS TAX AND SALARIES TAX TO OUR REVENUE, AND IT IS TRUE THAT THE SALARIES TAX CONTRIBUTION HAS PROBABLY INCREASED SOMEWHAT FASTER THAN THE PROFITS TAX CONTRIBUTION. HENCE, WHAT HAPPENED IN THE LAST COUPLE OF YEARS MAY HELP TO TACKLE THAT PERCEIVED PROBLEM. I MEAN WE PUT PROFITS TAX UP LAST YEAR, MODESTLY, AND THIS YEAR OF COURSE WE HAVE MAJOR CONCESSIONS ON SALARIES TAX. THAT WILL HELP TO REDRESS THAT BALANCE.

CUMMINGS: AND A QUESTION NOW FROM THE ENGLISH SIDE, GOOD MORNING.

HELLO, ARE YOU THERE?

QUESTION: HELLO.

CUMMINGS: YES GOOD MORNING. YOU CAN ASK MR MACLEOD YOUR QUESTION

NOW.

QUESTION: YES GOOD MORNING MR MACLEOD. YOU MENTIONED LAST YEAR

ABOUT PRIVATISATION AS PART OF THE GOVERNMENT’S EFFORT TO INCREASE EFFICIENCY. CAN YOU KINDLY COMMENT ON THE PROGRESS?

FS: YES, AT THE MOMENT, WE’RE TENDING TO GIVE PRIORITY TO A HALF-WAY

HOUSE WHICH IS CALLED TRADING FUNDS, AND I MENTIONED IN MY SPEECH A COUPLE OF EXAMPLES OF THAT. I THINK THE LANDS REGISTRY AND THE COMPANIES REGISTRY WHICH IS NOT PRIVATISATION TN THE SENSE THAT THE OWNERSHIP REMAINS WITH THE GOVERNMENT BUT THEY ARE GIVEN THE REVENUE, THEY HAVE THE INCENTIVE TO RUN THE OPERATION ON MORE COMMERCIAL LINES. WE THINK THAT’S PROBABLY A PRETTY GOOD STEP TOWARDS IMPROVING EFFICIENCY. WHETHER IN THE END THAT LEADS TO PRIVATISATION REMAINS TO BE SEEN.

QUESTION: O.K. MY OTHER QUESTIONS WOULD BE, THE TAX ON TOBACCO, DO

YOU THINK THAT IT WILL FUEL SMUGGLING?

FS: I’M CAUGHT IN A SORT OF TRAP IN THE TOBACCO TAX. YOU’RE RIGHT.

ONE OF THE PROBLEMS WHICH HAS COME UP FROM THE INCREASE IN TOBACCO DUTY IS THAT THERE IS SMUGGLING. WE ESTIMATE PROBABLY PERHAPS AS MUCH AS 10 PER CENT OF THE CIGARETTES BEING SOLD MAY BE SMUGGLED, SO I’M QUITE RELUCTANT TO PUSH THAT DUTY UP ANY FURTHER UNTIL WE’VE GOT A BETTER GRIP OF THE SMUGGLING PROBLEM. ON THE OTHER HAND, I’M UNDER PRESSURE FOR HEALTH REASONS, OF COURSE TO 1)0 MORE ON SMOKING. WHAT I’VE DONE IS A SORT OF, I HOPE WILL HELP SOMEWHAT, I HAVE DOUBLED THE AMOUNT OF MONEY WHICH IS GOING TO COST, THE COMMITTEE WHICH DEALS WITH HEALTH EDUCATION AS REGARDS SMOKING. J HOPE THAT WILL HELP BUT I’VE BEEN RATHER RELUCTANT TO INCREASE THE RISK OF SMUGGLING BY INCREASING THE TAX.

/QUESTION .......

THURSDAY, MARCH 4, 1993

21

QUESTION: GREAT, THANKS MR MACLEOD.

CUMMINGS: THANK YOU FOR YOUR CALL.

CHAN: NEXT MISS LEUNG, GOOD MORNING MISS LEUNG.

QUESTION: GOOD MORNING MR CHAN, MR MACLEOD. NOW IN THE BUDGET IT IS SAID THAT THERE IS SOMETHING TO BE DONE ABOUT SANDWICH HOUSING BUT THE STRESS IN ON THE FIRST TIME BUYER. NOW BY FIRST TIME BUYER DO YOU MEAN THAT PEOPLE WHO HAVE NEVER BOUGHT A FLAT IN HONG KONG? NOW IF THAT IS THE CASE, I DON’T THINK IT’S FAIR, BECAUSE FOR FIRST TIME BUYER, IT SHOULD MEAN THAT IT’S RESTRICTED TO TWO OR THREE YEARS AGO, THAT IS IN THE PAST TWO OR THREE YEARS THEY HAVE NOT OWNED PRIVATE PROPERTY, SO I THINK THOSE SANDWICH CLASS. SHOULD ALSO BENEFIT. SO I WOULD LIKE TO ASK MR MACLEOD, WITH REGARD TO THE FIRST TIME BUYER IN THE SANDWICH CLASS, DO YOU MEAN THOSE WHO HAVE NEVER BOUGHT ANY PRIVATE PROPERTY, SO YOU MENTIONED FIRST TIME BUYERS?

FS: YES. I’M NOT SURE THAT THE DEFINITION HAS ACTUALLY BEEN FINALISED YET, THAT WILL HAVE TO BE DISCUSSED WITH THE HOUSING SOCIETY AMONG OTHERS BUT I WOULD GUESS THAT PROBABLY IT DOES MEAN THAT THE PERSON HAS NOT BOUGHT A FLAT TN HONG KONG BEFORE BECAUSE THE THEORY IS OF COURSE THAT ONCE YOU’VE GOT INTO THE HOUSING MARKET YOU THEN HAVE AN ASSET AND YOU THEREFORE HAVE SOME MONEY WHICH ENABLES YOU TO GO ON UP THE LADDER OF HOUSING BUT I NOTE THE POINT AND I THINK THE TRUTHFUL ANSWER IS WE HAVEN’T ACTUALLY DRAWN UP THE DEFINITION YET.

CHAN: YES, MISS LEUNG.

QUESTION: I WOULD LIKE TO ASK MR MACLEOD FURTHER. NOW IF THAT’S THE DEFINITION OF FIRST TIME BUYER, I THINK IT’S VERY UNFAIR BECAUSE MARKET PRICES HAVE GONE UP SO MUCH AND THAT’S ONLY IN THE PAST THREE YEARS THAT’S HAPPENED. AS FOR MYSELF I SOLD MY FLAT A FEW YEARS AGO SO IT’S IMPOSSIBLE FOR ME TO REBUY ANOTHER FLAT TN THE LAST TWO OR THREE YEARS AND ALSO I FALL WITHIN THE SANDWICH CLASS SO I WOULD LIKE TO KNOW OR I WOULD HOPE RATHER, THAT THIS DEFINITION WOULD COVER PEOPLE LIKE MYSELF. THAT IS FOR THOSE THAT HAVE NOT OWNED PRIVATE FLAT IN THE PAST TWO OR THREE YEARS.

FS: 1 WILL CERTAINLY PASS YOUR POINT OF VIEW. I UNDERSTAND EXACTLY WHAT YOU’RE SAYING. I WILL PASS YOUR VIEW ON TO THE COMMITTEE WHICH IS LOOKING AT THESE DEFINITION PROBLEMS.

CHAN: THANK YOU MISS LEUNG FOR YOUR MENTIONING THE SANDWICH CLASS HOUSING. NOW WE HAVE ANOTHER CHINESE CALLER. MADAME CHAN, GOOD ' '"'TNG.

/QUESTION .......

THURSDAY, MARCH 4, 1993

- 22 -

QUESTION: GOOD MORNING FINANCIAL SECRETARY. I’M GLAD TO SEE THAT THERE ARE SOME SUBSTANTIAL PROPOSALS WITH REGARD TO EDUCATION. FOR EXAMPLE THERE WILL BE WHOLE DAY PRIMARY SCHOOLING AND ADDITIONAL KINDERGARTEN FEE REMISSION CONCESSIONS. BUT STILL I AM DISAPPOINTED IN ANOTHER AREA BECAUSE ON THE EDUCATION FRONT THERE IS ONLY MENTION OF ADDITIONAL PLACES BUT THERE IS NO MENTION OF IMPROVEMENT IN OUR EDUCATION SYSTEM AS TO HOW MUCH WILL BE ALLOCATED TO WHAT AREAS. FOR EXAMPLE WITH REGARD TO SUBSIDY TO PARENTS, THAT’S NOT BEEN REVEALED AND THEN WITH REGARD TO STAFF PAY THERE IS ALSO NO REVIEW. BECAUSE NOW FOR AM TEACHERS, YOU’RE TALKING ABOUT FUND ALLOCATION TO KINDERGARTEN EDUCATION, THAT IS NOT ENOUGH AND THAT INCLUDES SUBSIDY TO PARENTS AS WELL AS STAFF PAY, IS THAT WHAT YOU MEAN? YES, BECAUSE IF YOU ONLY INCREASE THE NUMBER OF PLACES FOR THE FEE REMISSION SCHEME, THAT IS NOT SUFFICIENT. NOW IF THERE IS, BECAUSE THERE ARE PARENTS WHO STILL ENCOUNTER DIFFICULTIES.

CHAN: O.K. YOUR QUESTION HAS BEEN PUT QUITE CLEARLY. NOW WE CAN LISTEN TO THE RESPONSE OF MR MACLEOD. TN FACT THAT’S BEEN MENTIONED IN THE BUDGET THIS TIME.

FS: YES THANK YOU. FIRST A GENERAL POINT, I THINK AN ENORMOUS AMOUNT HAS BEEN DONE AND IS BEING DONE IN EDUCATION. AS A RESULT MAINLY OF A SERIES OF EDUCATION COMMISSION REPORTS. I CAN UNDERSTAND THAT THERE MAY BE SOME CONFUSION ABOUT WHAT EXACTLY IS GOING ON BECAUSE THERE’S SO MUCH AND OF COURSE IT’S TAKING PLACE OVER THE PERIOD OF THE NEXT FEW YEARS. WE PLAN THEREFORE TO PUBLISH A PAMPHLET OR A LEAFLET ON THIS SUBJECT TO TRY AND SET OUT CLEARLY WHAT HAS HAPPENED IN THE EDUCATION FIELD IN THE LAST FEW YEARS, BECAUSE THERE’S SO MUCH. BUT TO DEAL WITH THE PARTICULAR QUESTION ON KINDERGARTEN. THE THING WHICH I ANNOUNCED IN THE BUDGET, THE NEW DEVELOPMENT WHICH I ANNOUNCED IN THE BUDGET WAS SIMPLY AN INCREASE IN THE KINDERGARTEN FEE REMISSION SCHEME SO THAT ANOTHER 32,000 FAMILIES WILL QUALIFY. IT’S NOT A FUNDAMENTAL REVIEW BUT IT’S AN INCREASE IN THAT CONCESSION.

QUESTION: PERHAPS I CAN PICK UP ALONG THOSE SORT OF LINES, THERE’S BEEN SOME CRITICISM OR SUGGESTIONS THAT I’VE SEEN THAT IT’S ALL VERY WELL TO BUILD HOSPITALS, TO BUILD SCHOOLS, TO HAVE THESE GRANDIOSE PLANS BUT IF THE PERSONNEL ARE NOT AVAILABLE, THEY COME TO NOTHING. FOR EXAMPLE YOU CAN BUILD A HOSPITAL AT NORTH BUT IF THE EXAMPLE OF EASTERN HOSPITAL IS ANY GUIDE, YOU MAY NOT GET ENOUGH NURSES, YET YOU HAVEN’T ADDRESSED THAT SORT OF PROBLEM WITHIN THE BUDGET.

FS: NO, I DON'T THINK IT’S ACTUALLY FOR THE BUDGET TO ADDRESS BUT TAKE THE TWO EXAMPLES YOU’VE GIVEN. CERTAINLY FOR TEACHERS PART OF THE IMPLEMENTATION OF ONE OF THOSE REPORTS I MENTIONED IS AN INCREASE IN THE RESOURCES DEVOTED TO PRODUCING TEACHERS AND ALSO TRAIN THE EXISTING TEACHERS. ON THE NURSES, THERE WAS OF COURSE A RECENT DEBATE IN LEGCO ON THIS SUBJECT AND WE HAVE SAID THAT WE ARE REVIEWING THAT WHOLE QUESTION OF THE SUPPLY OF NURSES. I THINK SOMETIMES THE PROBLEM IS A LITTLE EXAGGERATED BECAUSE OF COURSE WHEN WE BUILD A NEW HOSPITAL WE DON’T ACTUALLY INTEND TO OPEN THE ENTIRE HOSPITAL IN ONE GO AND STAFF IT FULLY. IT’S INEVITABLY GOING TO BE PHASED, SO THERE’S BEEN SOME SUGGESTION THAT THE PHASING IS A RESULT OF STAFF SHORTAGE BUT THE PHASING WOULD BE THERE ANYWAY.

/QUESTION .......

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THURSDAY, MARCH 4, 1993

QUESTION: GOOD MORNING FINANCIAL SECRETARY. ABOUT PUBLIC EXPENDITURE. NOW THERE’S AN ANNOUNCEMENT THAT NEXT YEAR THERE WILL BE A LOT OF CAPITAL WORKS GOING ON AND THERE’S A PAMPHLET GIVING THE LOCATIONS BUT WHAT ABOUT THE DETAILED BUDGET OF EACH CAPITAL WORKS, CAN THAT BE ANNOUNCED? DO YOU GET MY MEANING?

FS: YES. WE DO ACTUALLY PUBLISH A LIST OF ALL THE PUBLIC WORKS PROJECTS. I’M AFRAID IT’S PART OF A VERY LARGE DOCUMENT. THERE ISN’T A LEAFTLET ON THAT BECAUSE THERE’S AN ENORMOUS NUMBER BUT WHAT WE HAVE DONE IS WE’RE GIVING TO DISTRICT OFFICES A LIST OF THE PROJECTS IN THEIR OWN DISTRICT AND WE’RE ASKING THEM TO PUBLICISE THOSE PROJECTS. SOME OF THEM ARE QUITE SMALL ONES, PROBABLY ONLY OF INTEREST TO THAT PARTICULAR DISTRICT. THIS YEAR FOR THE FIRST TIME WE’VE BROKEN DOWN THAT PROGRAMME INTO DISTRICTS AND WE’VE ASKED D.O.’S TO PUBLICISE IT. SO I HOPE THAT WILL HELP PEOPLE IN DISTRICT TO KNOW WHAT’S COMING UP IN THEIR OWN PARTICULAR DISTRICT.

QUESTION: WELL WITH REGARD TO EXPENDITURE ON CAPITAL WORKS, THE AMOUNT IS MAMMOTH. ON THIS FRONT I WONDER IF THERE SHOULD BE EFFECTIVE CONTROL SO THAT WE WILL NOT HAVE THE PROBLEM OF OVER-RUN, JUST AS WHAT WE HAD IN THE UNIVERSITY OF TECHNOLOGY AND SCIENCE. SO WILL THAT RECUR?

PRESENTER: SO YOU’RE TALKING ABOUT COST OVER-RUN.

FS: ACTUALLY OUR PROBLEM AT THE MOMENT IS CURIOUSLY ENOUGH THE REVERSE. WE’RE NOT HAVING COST OVER-RUN PROBLEMS, WE’RE HAVING CONTRACTS COMING TN LESS THAN THE ESTIMATE, WHICH IS GOOD NEWS AND I MENTIONED IN THE BUDGET THAT ACTUALLY PART OF THE UNDERSPENDING, PART OF IT, IS ONE BILLION DOLLARS WHICH IS GENUINE SAVINGS BECAUSE CONTRACTS HAVE COME TN UNDER-ESTIMATE. SO, COST OVER-RUN IS NOT CURRENTLY A PROBLEM. THE PROBLEM IS THAT THE CAPACITY OF OUR WORKS DEPARTMENTS HASN’T PROVED TO BE QUITE UP TO THE SIZE OF THE PUBLIC WORKS PROGRAMME AND WHAT WE’RE TRYING TO DO THERE IS TO MAKE MORE USE OF THE PRIVATE SECTOR SO THAT WE CAN GET ON WITH THESE PROJECTS WHICH WE ALL WANT TO SEE BUILT.

PRESENTER: CAN I JUST ADD A SUPPLEMENTARY TO THAT. WHAT WOULD HAPPEN IF THERE’S AGREEMENT WITH CHINA NOW ON THE CONSTRUCTION OF THE AIRPORT AND CT9 GOES THROUGH AND SO ON. WOULD THAT NOT MEAN THAT YOU’RE GOING TO HAVE ALL THESE OTHER CONTRACTS COMING ON QUITE QUICKLY AND THAT WOULD THEN, IF YOU SAY YOU’VE GOT PROBLEMS WITH ACTUALLY HANDL ING THESE SORT OF THINGS NOW, ALL THE MORE SO IN THE FUTURE?

FS: WELL OF COURSE A LOT OF THE AIRPORT CORE PROGRAMME IS PUBLIC WORKS PROJECTS WHICH ARE PROCEEDING ABSOLUTELY ON TIME AND WITHIN BUDGET. SO THAT’S ALREADY THERE, IT’S GOING ON, IT’S TAKEN INTO ACCOUNT AND THE FUNDING FOR THOSE IS REFLECTED IN OUR MEDIUM RANGE FORECAST. THE TWO PROJECTS WHICH ARE MORE SUBJECT TO THE TALKS WITH CHINA, OF COURSE THE AIRPORT ITSELF AND THE AIRPORT RAILWAY. AGAIN IN OUR FORECAST WE’VE PUT IN THE MONEY ON THE BASIS OF THE ORIGINAL PROPOSALS FOR FUNDING, THAT'S ALREADY IN THE FIGURES. AND OF COURSE ON THE AIRPORT, AT THE MOMENT WE’RE STILL ON TRACK. THE SITE PREPARATION CONTRACT HAS BEEN AWARDED AND SITE PREPARATION IS GOING ON. ON THE RAILWAY, WE’LL HAVE TO SEE BECAUSE WE'RE WAITING FOR A DECISION OF COURSE ON THE RECLAMATION WHICH WILL FORM THE HONG KONG STATION FOR THE AIRPORT RAILWAY.

/PRESENTER .......

THURSDAY, MARCH 4, 1993

24

PRESENTER: WE HAVE ANOTHER CALLER NOW ON 3388266. YOU HAVE A QUESTION FOR MR MACLEOD, GO AHEAD.

QUESTION: FINANCIAL SECRETARY, A QUESTION OF A FAR SMALLER SCALE. DID YOU CONSIDER REMOVING THE FIRST REGISTRATION TAX ON ELECTRIC VEHICLES AND WOULD YOU CONSIDER DOING THIS IN FUTURE BUDGETS SO AS TO PROMOTE THEIR USE IN HONG KONG?

FS: I DIDN’T. I DON’T THINK IT WAS A POINT THAT I WAS PARTICULARLY AWARE OF. I PRESUME THIS IS AN ENVIRONMENTAL MEASURE WHICH YOU’RE SUGGESTING IT AS. I WOULD BE WILLING TO LOOK AT THAT, I HAVEN’T HONESTLY SEEN A CASE PUT UP FOR IT.

PRESENTER: ARE YOU SUGGESTING CALLER THAT IF THAT WAS DONE, THEN MORE PEOPLE WOULD SWITCH FROM THEIR FILTHY DIESEL ENGINES THAT ARE NOT MAINTAINED PROPERLY INTO ENVIRONMENTALLY FRIENDLY ELECTRIC CARS?

QUESTION: I AM. I'M NOT IN FACT AN FNV1KONMFNTA! LOBBYIST OR A LOBBYIST FOR THE ELECTRIC INDUSTRY OK ANYTHING OF THAT NATURE BUT I BELIEVE LOS ANGELES IS MOVING TOWARDS THE END OF THIS CENTURY, TO GET 10 PER CENT OF THE VEHICLES ON THE ROAD WILL BE ELECTRIC VEHICLES AND IT’S SOMETHING TO THINK ABOUT TN HONG KONG BUT AT THE MOMENT, AS I UNDERSTAND, THE COST OF BRINGING THESE VEHICLES IN IS SO LARGE, A GREAT DEAL BECAUSE OF THE FIRST REGISTRATION TAX ON THEM.

PRESENTER: I THINK YOU’VE GOT A COMMITMENT FROM MR MACLEOD THAT HE’S GOT AN OPEN MIND ON THIS ONE BUT HE HASN’T ACTUALLY APPLIED THAT OPEN MIND TO IT YET AND I’M SURE THERE ARE PEOPLE WITHIN THE GOVERNMENT WHO COULD GIVE HIM ADVICE ON THAT ONE. AND JUST AGAIN MR MACLEOD ON AN ENVIRONMENTAL ISSUE, IT HAS BEEN POINTED OUT AND I DON’T KNOW WITH HOW MUCH FAIRNESS, THAT THE ENORMOUS EXPENDITURE YOU’RE PREPARED TO PUT INTO THINGS LIKE THE EXHIBITION CENTRE AND EVEN THE ROADS, MAKE THE CONTRIBUTION OF THE GOVERNMENT TO SUCH ENVIRONMENTAL PROJECTS AS CLEANING UP THE HARBOUR LOOK QUITE NIGGARDLY?

FS: WELL I GUESS THE FACT OF LIFE IS THAT YOU HAVE...

FS: WELL, I GUESS THE FACT OF LIFE IS THAT YOU HAVE TO BALANCE YOUR PROJECTS RATHER CAREFULLY, AND YOU WILL NOTICE THAT A LOT OF THOSE ONE-OFF PROJECTS WHICH ARE TN THE BUDGET ARE ONES WHICH IMPROVE, AS IT WERE, OUR EARNING CAPACITY, THAT IS TO SAY THEY ENABLE FUTURE ECONOMIC GROWTH. THE ENVIRONMENTAL MEASURES, THE SEWAGE MEASURES TO BE SPECIFIC, ALAS, DO NOT DO THAT. SO ONE HAS TO BALANCE OFF MONEY WHICH SIMPLY IMPROVES THE ENVIRONMENT AGAINST MONEY WHICH ACTUALLY IMPROVES THE INFRASTRUCTURE AND OUR EFFICIENCY AND OUR EARNING CAPACITY IN THE FUTURE, SO WE HAVE TO KEEP A BALANCE. OF COURSE THE SEWAGE PROGRAMME IS NOT THE FULL STORY, WE ARE SPENDING BILLIONS OF DOLLARS ON LANDFILL, FOR EXAMPLE, ON DISPOSAL OF SOLID REFUSE, SO THE SEWAGE PROGRAMME IS NOT THE SUM OF OUR EFFORTS ON THE ENVIRONMENT.

/QUESTION .......

THURSDAY, MARCH 4, 1993

25

QUESTION: GOOD MORNING. WELL, MY QUESTION IS AS FOLLOWS. NOW IN THE BUDGET $10 MILLION WILL BE ALLOCATED FOR THE WORKERS, THE WORKERS WILL BENEFIT FROM IT. NOW FOR THE INJURED WORKERS $10 MILLION IS NOT A LARGE AMOUNT BECAUSE IF WE LOOK AT THE TRAFFIC ACCIDENT ASSISTANCE SCHEME FOR EXAMPLE, YOU WILL SEE THAT $10 MILLION IS ENTIRELY INADEQUATE. IF WE LOOK AT THE TRAFFIC ACCIDENT ASSISTANCE SCHEME, FOR A FAMILY WITH A FATALITY THE LOAN CAN STAND AS HIGH AS $90,000. AND WE AT PRESENT HAVE AROUND 200 FAMILIES WITH INJURED WORKERS, SO HOW DO WE DEAL WITH THEM? SO YOU FEEL THAT $10 MILLION IS NOT ADEQUATE AT ALL, SO IT WILL NOT HELP THE INJURED WORKERS OR THEIR FAMILY MEMBERS TO TIDE THEM OVER THEIR DIFFICULTIES. IS THAT WINDOW-DRESSING, OR IS THAT REALLY ADEQUATE, MR MACLEOD?

FS: YES, THIS IS NOT A REPLACEMENT, THERE IS A SCHEME ALREADY FOR COMPENSATION FOR INJURED WORKERS. WHAT WE ARE DOING HERE IS DEALING WITH THE PROBLEM THAT IT TAKES FAR TOO LONG FOR THE CLAIMS OF INJURED WORKERS TO BE DEALT WITH AND THE MONEY TO BE DISHED OUT, TN FACT IT TAKES ANYTHING FROM FOUR MONTHS TO A YEAR, AND WHAT WE ARE DOING IS, WF. ARE FILLING THAT GAP BY PROVIDING A LOAN FROM THIS FUND SO THAT WHILE THE FAMILIES OF THE WORKERS, OR THE WORKERS, WAIT FOR THIS CLAIM TO BE PROCESSED, THEY WILL HAVE MONEY. THAT IS THE PURPOSE OF IT. AND THE ESTIMATE IS THAT PROBABLY ABOUT 400 WORKERS A YEAR WILL WISH TO USE THIS FUND.

QUESTION: BUT I FEEL THAT THE AMOUNT OF MONEY IS NOT ADEQUATE. DO YOU THINK THAT THERE HAS BEEN AN UNDERESTI MATION? WE HAVE SOME 200 FATALITIES ALREADY AND THESE CLAIMANTS WILL GET THE PAYMENTS AFTER ONE OR TWO YEARS’ TIME.

FS: COULD I JUST TRY AND EXPLAIN BETTER. THIS IS A REVOLVING FUND, IT SIMPLY DEALS WITH THE GAP BEFORE THEY GET THEIR PROPER COMPENSATION. SO THEY GET A LOAN; THAT IS REPAID WHEN THEY GET THE PAY-OUT. WE HAVE ACTUALLY CALCULATED THE MONEY SO THAT IT IS ENOUGH FOR THE EXPECTED DEMAND. IT IS NOT A LIMITING FIGURE, IT IS CALCULATED TO DEAL WITH THE NUMBER OF CASES THAT WE ARE EXPECTING.

KIT CUMMINGS: AND PRESUMABLY, IT IS NOT BEYOND THE WIT OF MAN, SHOULD THERE BE A SUDDEN RUSH FOR THAT MONEY, FOR A SUPPLEMENTARY SUM TO BE AWARDED?

FS: YES, IF IT PROVES TO BE INADEQUATE, I AM PERFECTLY OPEN TO PROPOSALS TO INCREASE IT, BUT OUR ESTIMATE IS THAT IT WILL BE ADEQUATE.

/QUESTION .......

THURSDAY, MARCH 4, 1993

26

QUESTION: GOOD MORNING FINANCIAL SECRETARY. JUDGING BY THE ALLOCATION OF FUND THAT APPEAR TO HAVE BEEN PUT FOR THE AIRPORT PROJECT, DOES IT NOT APPEAR THAT YOU ARE HAVING INTENTIONS OF EITHER BREACHING THE PROVISIONS OF THE MEMORANDUM OF UNDERSTANDING OR ABANDONING THE PROJECT ALTOGETHER? BECAUSE AT THE PRE-MOU NEGOTIATIONS YOU HAD INDICATED TO THE CHINESE SIDE THAT YOU WOULD BE IN A POSITION TO LEAVE ANYTHING BETWEEN $70-90 BILLION AND THAT YOU WOULD NOT NEED TO BORROW ANY MONEY FOR THE PROJECT. BUT THE CHINESE SIDE INDICATED THAT THEY WOULD NOT HAVE ANY LIABILITIES CROSSING OVER AND INSTEAD SAID INSTEAD OF 70-90 LEAVE BEHIND ONLY 25 BUT DON’T BORROW MORE THAN 5 BILLION. SO THEREFORE THERE WAS AN ADDITIONAL 55 BILLION EQUITY THAT YOU WERE EXPECTED TO INJECT OVER AND ABOVE WHAT YOU PROPOSED TO THE CHINESE SIDE AT THE COMMENCEMENT OF THE MEMORANDUM OF UNDERSTANDING TALKS. DOES IT NOT APPEAR THAT IN THE LIGHT OF THE FACT THAT THE CHINESE HAVE SAID THERE SHOULD BE NOT MORE THAN FIVE BILLION BORROWING, AND YOU DO NOT SEEM TO INTEND TO PUT UP THAT 55 BILLION, THAT YOU HAVE DECIDED TO BREACH THE MOU OR TO ABANDON THE PROJECT?

FS: WELL NO, THERE IS ABSOLUTELY NO PROBLEM THERE. AS YOU SAY, UNDER THE MOU WE COMMITTED OURSELVES TO ENSURE THAT THERE WAS AT LEAST $25 BILLION IN THE RESERVES IN 96-97. I DON’T THINK ANYONE WOULD ACCUSE US OF BREACHING IT IF WE HAVE A BIT MORE, I PRESUME THEY WOULD BE RATHER HAPPY.

QUESTION: WITH REGARD TO RESERVES, THERE IS A SUPPLEMENTARY QUESTION FOR MR MACLEOD. YOU ANTICIPATE THAT IN 1996-97 THE RESERVES WILL STAND AT $78.4 BILLION, BUT THEN IN THE PAST TWO YEARS THE ESTIMATES HAVE BEEN OFF THE MARK. THIS TIME AROUND IT HAS BEEN LUCKY BECAUSE WE HAVE MORE SURPLUS, BUT THEN YOU ARE QUITE FAR OFF THE MARK, SO IS THERE A GREAT POSSIBILITY THAT THE AMOUNT OF 78.4 MAY TURN OUT TO BE WRONG?

FS: YES, OF COURSE. FORECASTS LOOKING YEARS AHEAD ARE FALLIBLE, THEY ARE FALLIBLE IN THE PUBLIC SECTOR AND THEY ARE FALLIBLE IN THE PRIVATE SECTOR, AND I HIGHLIGHTED A FEW OF THE DOWN-SIDE RISKS IN THE BUDGET SPEECH, THAT WOULD BE PARTICULARLY, THE MFN ISSUE. OF COURSE THERE ARE UP-SIDES TOO, AND IT IS ACTUALLY QUITE DIFFICULT AT THE MOMENT TO FORECAST. WE HAVE, OF COURSE, THE POLITICAL ISSUE WHICH IS STILL UNRESOLVED AT THE MOMENT. WE HAVE, AS A CALLER MENTIONED, THE AIRPORT TALKS ALSO STILL UNRESOLVED. BUT MY MAIN COMFORT AND THE CONFIDENCE I HAVE IN MAKING THOSE PROJECTIONS, STEMS BASICALLY FROM OUR FORECASTS OF ECONOMIC GROWTH AND THERE, I THINK, WE ARE AT ONE WITH MOST PRIVATE SECTOR COMMENTATORS. I THINK MOST, FOR INSTANCE BANK ECONOMISTS AND SO ON WHO PUBLISH THEIR FORECASTS, ARE ALSO PRETTY BULLISH ABOUT OUR ECONOMIC GROWTH, PARTLY BASED ON A BULLISH VIEW OF CHINA’S OWN GROWTH. THAT IS BASICALLY WHAT IT IS. THE JOY OF HAVING PRETTY GOOD RESERVES AND MORE OR LESS NO BORROWING IS THAT ONE HAS SOME FLEXIBILITY TO ADJUST IF ONE’S FORECASTS PROVE TO BE WRONG. I MEAN BY THAT, PARTICULARLY FORECASTS OF ECONOMIC GROWTH.

KIT CUMMINGS: AND CAN I JUST ASK A QUICK SUPPLEMENTARY ONE HERE. COULD WHAT YOU ARE SAYING APPLY ALSO TO THE PROJECTED DEFICITS OVER THE NEXT FEW YEARS THAT IF THINGS ARE BETTER THAN WOULD BE INDICATED AT THE MOMENT, YOU MIGHT END UP ACTUALLY WITH SURPLUS BUDGETS WHERE YOU WERE FORECASTING DEFICIT BUDGETS?

/IT IS ........

THURSDAY, MARCH 4, 1993

27 * -

FS: IT IS POSSIBLE. I MEAN TO GIVE YOU AN EXAMPLE, TO FORECAST PROPERTY SALES, PROPERTY PRICES, PROPERTY REVENUE, IS EXCEEDINGLY DIFFICULT AND PERHAPS WE TEND TO BE FAIRLY CONSERVATIVE ON THAT BECAUSE I THINK GOVERNMENTS SHOULD BE FAIRLY CONSERVATIVE IN THEIR FORECASTS. SO THERE IS UP-SIDE AS WELL AS DOWN-SIDE IN THOSE FIGURES, YES.

QUESTION: GOOD MORNING. I WOULD LIKE TO ASK: THERE WILL BE ABOLITION OF TAX OR COSMETIC DUTY. NOW THAT DOESN’T REALLY BENEFIT THE PUBLIC AS SUCH. LAST YEAR, THE FINANCIAL SECRETARY LIFTED THE TAX ON SOFT DRINKS AND CINEMA TICKETS BUT THE PUBLIC DID NOT STAND TO GAIN AT ALL BECAUSE LAST YEAR THERE WAS NO PRICE REDUCTION ON SOFT DRINKS SO ALL THE BENEFITS WENT TO THE TRADERS. NOW THIS YEAR, YOU ARE GOING TO LIFT COSMETIC DUTY AND THAT MEANS THERE IS A REMOVAL OF 30 PER CENT DUTY, BUT THEN THE PUBLIC IS ONLY GOING TO ENJOY A TEN PER CENT PRICE REDUCTION. IN OTHER WORDS, THE OTHER TWENTY PERCENT WILL GO TO THE TRADERS, SO WE DON’T REALLY BENEFIT AS SUCH. IN THAT CASE, WHY DON’T YOU GIVE US MORE TAX CONCESSIONS INSTEAD?

FS: YES, I WAS AMAZED ACTUALLY LAST YEAR AT SOME OF THE COMMENTS THAT NO ONE DRANK SOFT DRINKS OR WENT TO THE CINEMA. YOU CAN DO TWO THINGS WHEN YOU’RE REMOVING A TAX. YOU CAN ASK FOR A COMMITMENT TO ACTUALLY REDUCE THE CHARGE, WHICH WE GOT FROM THE COSMETICS INDUSTRY, OR AT THE VERY LEAST YOU CAN ENSURE THAT INCREASES WHICH WOULD HAVE BEEN COMING UP BECAUSE OF INFLATION ARE NOT IMPLEMENTED. AND I THINK THE COMBINATION OF THOSE TWO DOES ENSURE THAT THE PUBLIC BENEFITS DIRECTLY. AND DON’T BE MISLED BY THE TITLE ‘COSMETICS’, IT INCLUDES A WHOLE RANGE OF CREAMS AND SO ON WHICH EVERYONE USES, IT IS NOT JUST EXPENSIVE WOMEN’S PERFUMES.

SECONDLY, I DID HAVE IN MIND OUR TOURIST INDUSTRY. ONE OF OUR ATTRACTIONS FOR, FOR INSTANCE THE JAPANESE, IS THAT THEY COME HERE TO SHOP FOR THINGS PRECISELY LIKE COSMETICS AND WE WERE IN DANGER OF LOSING OUR ATTRACTION IN THE COSMETICS FIELD THROUGH THAT TAX. IF THE SALES INCREASE THEN OUR ECONOMY WILL BENEFIT, SO I ALSO HAD THAT TN MIND.

QUESTION: NOW WE TALK ABOUT FLEXIBILITY. OK, I WANT TO GO BACK TO THE RESERVES OF $78 BILLION BY THE YEAR 96-97. YOU MENTIONED THAT IS AN ESTIMATE AND THERE IS MARGIN ERROR, POSSIBLY. SO IS IT AN OPTIMISTIC ESTIMATE, THAT WE HAVE $78 BILLION? WHAT, SAY, IF THERE IS A DOWN-SIDE ELEMENT? IN OTHER WORDS, THE RESERVES COULD BE MUCH SMALLER, MAYBE WE COULD NOT EVEN REACH THE $25 BILLION MARK?

FS: BUT OF COURSE THERE ARE BOTH UP-SIDES AND DOWN-SIDES,

THAT IS THE NATURE OF FORECASTS. THE PURPOSE OF HAVING RESERVES WHICH ARE AN ADEQUATE CUSHION - TO USE WORDING WHICH I AM RATHER FOND OF - IS PRECISELY TO DEAL WITH ANY DOWN-SIDE. THERE IS NO MAGIC ABOUT HAVING 78 BILLION, THE PURPOSE IS TO HAVE RESERVES WHICH ARE ENOUGH TO HELP US DEAL WITH, LET’S SAY, LOWER GROWTH THAN WE HAD FORECAST. WE DON’T WANT TO HAVE ‘STOP-GO’ POLICIES ON OUR CAPITAL WORKS PROJECTS, AS FAR AS POSSIBLE. IF THERE WAS A DOWNTURN, WE WOULD BE ABLE TO SOFTEN THE EFFECT OF THAT BY DRAWING SOMEWHAT ON OUR RESERVES, THAT IS WHAT THEY ARE THERE FOR, THEY ARE NOT THERE JUST TO BE STORED UP AND ENDLESSLY INCREASED.

/QUESTION ......

THURSDAY, MARCH 4, 1993

28

QUESTION: GOOD MORNING. TWICE, THIS MORNING, YOU HAVE SAID THAT A COUPLE OF POINTS HAVE BEEN RAISED WHICH HAVE NOT BEEN PREVIOUSLY BROUGHT TO YOUR ATTENTION, MAYBE I WOULD LIKE TO BRING A THIRD ONE TO YOUR ATTENTION, AND THAT IS THE CASE OF THE EXPAT. I GET PAID IN STERLING AND 1 AM LEVIED 10 PER CENT OF MY SALARY FOR THE FACT THAT I AM PROVIDED WITH A FLAT. UNFORTUNATELY, NOBODY TAKES ACCOUNT OF THE FACT THAT I HAVE A UK HOME, I PAY MORTGAGE, I PAY POLL-TAX, HEATING BILLS AND MAINTENANCE FOR ALL THAT. DURING THE LAST YEAR THE SALARY WAS LEVIED AT 13 TO THE POUND, THAT IS THE CONVERSION FACTOR THAT YOU, THE GOVERMENT, USE, AND YET I AM BRINGING OVER MONEY NOW AT 11 TO THE POUND, SO MY NET TAX IS ABOUT 25 PER CENT OF MY SALARY. CAN YOU DO ANYTHING FOR US, PLEASE?

FS: WELL YOU ARE RIGHT, I HAVE NEVER HEARD OF THE PROBLEM BEFORE. I DON’T KNOW WHAT YOUR PARTICULAR CIRCUMSTANCES ARE BUT I MEAN BASICALLY, I CAN ONLY DEAL WITH THE HONG KONG TAXATION SYSTEM. AS FAR AS I KNOW, AS BETWEEN UK AND HONG KONG, THERE IS, IN EFFECT, A DOUBLE TAXATION ARRANGEMENT, THERE IS NOT ACTUALLY, I DON’T THINK, AN AGREEMENT, BUT I DON’T THINK THAT PEOPLE ARE TAXED TWICE. BUT THAT IS NOT QUITE YOUR POINT. BUT YOUR POINT WAS A BIT TOO COMPLICATED FOR ME TO UNDERSTAND, BUT BASICALLY, YOU ARE RIGHT THAT THIS IS NOT A PROBLEM I HAVE COME ACROSS BEFORE. IF YOU WOULD LIKE TO WRITE TO ME AND LET ME KNOW THE DETAILS OF IT, I CAN HAVE A LOOK, BUT ON THE FACE OF IT I DON’T THINK, WITH RESPECT, THAT IT IS PROBABLY MY PROBLEM AS OPPOSED TO THE UK TAX PROBLEM.

KIT CUMMINGS: I WONDER WHETHER A TAX RELEASE, SPECIFICALLY FOR EXPATRIATES, WOULD NOT BE A BIT POLITICALLY SENSITIVE AT THE MOMENT. THANK FOR YOUR CALL ANYWAY, AND MR MACLEOD IS GOING TO HAVE A LOOK AT IT.

QUESTION: I WOULD LIKE TO ASK THE FINANCIAL SECRETARY ABOUT THE

TAX ALLOWANCE. NOW THAT IS INCREASED BY $10,000 BUT WHY IS IT THERE IS AN INCREASE ON FUEL TAX? SO IT SEEMS THAT HE IS PLAYING WITH FIGURES. SO HE IS NOT REALLY BENEFITING THE SANDWICH CLASS BECAUSE LET’S SAY FOR A SANDWICH CLASS MEMBER HE USES $400 ON PETROL A WEEK, IN OTHER WORDS, IN A YEAR HE WILL BE SPENDING $1,000 MORE, AND LET’S ASSUME THAT THE SANDWICH CLASS MEMBER EARNS AN ANNUAL SALARY OF $225,000, SO UNDER THE EXISTING TAX SYSTEM HE'WTLL BE PAYING $10,000 TAX, AND IN THE NEW TAX SYSTEM HE WILL BE PAYING $7,000 TAX BUT HE WILL BE PAYING AN EXTRA $1,000 ON FUEL TAX. IN OTHER WORDS, HE IS ONLY ENJOYING A CONCESSION OF $2,000. IS IT REALLY HELPFUL? YOU HAVE DONE SOME FINE CALCULATIONS, IT SEEMS, BUT STILL THAT IS WHAT WE GET FROM THE BUDGET. OK, SO LET’S LISTEN TO THE EXPLANATION THEN, HOW IS THAT SUM WORKED OUT?

FS: WELL PERHAPS YOUR MATHS IS ABOUT AS GOOD AS OUR MATHS.

I HAVE NEVER DREAMT THAT ANYONE WOULD SAY THAT THE INCREASE IN FUEL TAX, WHICH IS ONLY AN INFLATION INCREASE, WOULD OFFSET THE CONCESSIONS ON SALARIES TAX. I MEAN JUST TO REPEAT A FIGURE: A MARRIED COUPLE WITH TWO CHILDREN, IN THE SANDWICH CLASS, THAT IS TO SAY AT $18,000 A MONTH, THEY WILL BE SAVING, UNDER THESE CONCESSIONS, 56 PER CENT OF THEIR TAX, OR IN DOLLARS $8,350. NOW I CANNOT BELIEVE THAT THE INFLATION INCREASE IN FUEL TAX SUBSTANTIALLY BITES INTO THAT VERY MAJOR CONCESSION.

/QUESTION .......

THURSDAY, MARCH 4, 1993

29

QUESTION: GOOD MORNING FINANCIAL SECRETARY. I WOULD LIKE TO ASK: NOW YOU SAY THAT FOR THE SECOND CHILD’S ALLOWANCE THAT HAS BEEN INCREASED BY $8,000; THAT IS A GOOD SUM. BUT WHAT ABOUT THE THIRD CHILD, THE ALLOWANCE STILL STANDS AT $3,000, DO YOU THINK THAT IS ADEQUATE OR DO YOU WANT TO PENALISE THOSE COUPLES WITH THREE CHILDREN? SO IN OTHER WORDS, YOU WANT TO SUPPORT THE FAMILY PLANNING ASSOCIATION, IS THIS THE CASE?

FS: WELL, YES, I THINK THE MAIN BENEFIT SHOULD GO TO WHAT YOU MIGHT CALL THE NORMAL SIZE OF HONG KONG FAMILY, WHICH HAPPENS TO BE TWO CHILDREN; MY FAMILY HAPPENS TO BE TWO CHILDREN, TOO. I HAVEN’T ACTUALLY DETECTED ANY GREAT PRESSURE TO INCREASE THE ALLOWANCES FOR THE THIRD AND SUBSEQUENT CHILDREN. BUT I NOTE THAT, I THINK WHAT YOU ARE SAYING IS THAT YOU WOULD LIKE TO SEE THAT DONE, I WILL CERTAINLY NOTE THAT POINT FOR FUTURE REFERENCE.

KIT CUMMINGS: CAN WE PICK UP ON A DIFFERENT QUESTION NOW, AND THAT IS THE EXTENT OF AVOIDANCE OR EVASION OF TAX IN HONG KONG. IN OTHER PLACES IT IS REALLY A VERY MAJOR PROBLEM AND MOST FINANCIAL SECRETARIES OR THE EQUIVALENT, EVERY TIME THEY HAVE A BUDGET SPEECH THEY SAY HOW MUCH POTENTIAL THERE IS FOR GETTING MONEY INTO THE SYSTEM THROUGH TAX-DODGERS OR EVEN THROUGH LEGITIMATE EVASIONS, WHICH CAN BE PLUGGED THROUGH LEGISLATION. YOU HAVE ALLUDED TO IT BRIEFLY THERE IN YOUR BUDGET SPEECH, BUT DO YOU THINK THERE REALLY IS MUCH MONEY OUT THERE THAT CAN BE COLLECTED THROUGH DILIGENT INLAND REVENUE SERVICE BURROWING?

FS: YES, I THINK HUMAN NATURE IS SUCH THAT EVEN WHEN YOU HAVE A SIMPLE LOW TAX SYSTEM, PEOPLE WILL TRY AND AVOID IT, OR COMPANIES WILL TRY TO AVOID IT, WHICH IS PROBABLY THE MORE SERIOUS PROBLEM, AND I HAVE HAD A LOT OF SUPPORT FROM LEGCO MEMBERS IN THE NOTION THAT WE SHOULD SOMEWHAT INCREASE THE RESOURCES OF THE INLAND REVENUE DEPARTMENT TO TRY AND DEAL WITH THIS. THE INLAND REVENUE DEPARTMENT EXPERIMENTED WITH WHAT IS CALLED 'FIELD AUDIT TEAMS’ AND THOSE HAVE BEEN VERY SUCCESSFUL, THEY ACTUALLY GET OUT THERE AND CHECK, PARTICULARLY THIS IS COMPANY ACCOUNTS, AND THEY HAVE HAD A LOT OF SUCCESS. SO WE ARE MODESTLY INCREASING THE STAFF FROM THE INLAND REVENUE DEPARTMENT TO HELP THEM TACKLE THAT, PLUS THE FACT THAT SOME OF THE SIMPLIFICATION OF TAX MEASURES THAT I HAVE TAKEN, THE ABOLITION OF TAXES, WILL ALSO RELEASE STAFF ALSO IN THE INLAND REVENUE DEPARTMENT WHO WILL BE USED TO COMBAT BOTH AVOIDANCE AND EVASION. PLUS THE FACT THAT I THINK EVERY YEAR WE HAVE TO INTRODUCE ONE OR TWO LEGISLATIVE MEASURES TO DEAL WITH LOOPHOLES THAT HAVE EMERGED.

QUESTION: GOOD MORNING MR MACLEOD. I MUST WELCOME THE BUDGET THIS YEAR BECAUSE IT SEEMS TO BE A VERY LENIENT BUDGET BUT I HAVE JUST A SHORT COMMENT. WITH CONCERN TO THE TAX ON THE COSMETICS, I SEE NO REAL URGENT REASON WHY YOU HAVE TO CUT BACK, BECAUSE TO MY POINT I THINK MOST OF THE PUBLIC WILL STILL BUY THE COSMETICS AND I THINK THE TAX WHICH IS GENERATED BY THE COSMETICS CAN BE PUT INTO BETTER USE. SAY FOR EXAMPLE, THE INCREASE IN HEALTH OR EDUCATION, I THINK THEY CERTAINLY NEED MORE REVENUE TO BE GIVEN IN THESE TWO AREAS INSTEAD OF CUTTING THE COSMETIC TAX WHICH I DON’T THINK IS REALLY AN URGENT PROBLEM FOR MOST OF THE PUBLIC.

/FS ........

THURSDAY, MARCH 4, 1993

30 -

FS: I THINK PROBABLY MOST OF THE PUBLIC WERE NOT TERRIBLY AWARE THAT WHEN THEY BOUGHT THEIR CREAM FOR THEIR FACES AND SO ON, THAT THAT WAS TAXED, BUT I THINK THEY WILL NOTICE THE BENEFIT WHEN THE TAX IS REMOVED. THE INDUSTRY HAS AGREED TO CUT PRICES BY 10-12 PER CENT. BUT AS WELL AS THE DOMESTIC CONSUMER I MUST SAY I ALSO HAD IN MIND THE VISITORS, THE TOURISTS, WHO SPEND A LOT OF MONEY HERE WHICH BENEFITS ACTUALLY THE WHOLE COMMUNITY, AND I WANTED TO KEEP SHOPPING OF COSMETICS, AMONG OTHER THINGS, AS STILL AN ATTRACTION FOR TOURISTS, SO I HAD BOTH GROUPS IN MIND.

KIT CUMMINGS: CAN I JUST FOLLOW THAT ONE UP TOO. WE HAD CRITICISM ON ’HONG KONG TODAY’ EARLIER, THAT WHEREAS MOST FINANCIAL SECRETARIES HAVE BEEN SAYING WE NEED TO WIDEN THE TAX BASE, AS A SORT OF PHILOSOPHICAL POINT OR A PRACTICAL WAY AHEAD, IN FACT WHAT YOU ARE DOING IS TO NARROW THE TAX BASE.

FS: THAT IS TRUE. THERE HAS BEEN A LONG-STANDING DEBATE ON THIS. I THINK, MYSELF, THE THEORETICAL ARGUMENTS ARE SOMEWHAT OVERDONE. THE ARGUMENT, HISTORICALLY, HA.S BEEN IN TERMS OF DIRECT AND INDIRECT AND THE BENEFITS OF INCREASING THE REVENUE FROM INDIRECT TAXATION BECAUSE IT IS LESS VOLATILE. ACTUALLY, IT IS NOT QUITE TRUE, IT ALL DEPENDS ON THE TAX. FOR INSTANCE SALARIES TAX WHICH IS A DIRECT TAX IS A RATHER RELIABLE TAX AND OF COURSE IT TENDS TO GO UP RATHER NICELY WITH INFLATION, WHEREAS AN INDIRECT TAX LIKE STAMP DUTY IS EXTREMELY VOLATILE. SO I THINK THE ARGUMENT HAS PROBABLY GOT A LITTLE BIT CARRIED AWAY WITH ITSELF. I THINK THERE WERE GOOD THEORETICAL REASONS FOR PROPOSING THE INTRODUCTION OF A SALES TAX, BUT THERE ARE GOOD POLITICAL REASONS WHY WE ARE NOT ABOUT TO DO IT.

QUESTION: DO YOU MEAN THAT BEFORE 1997, YOU WILL NOT CONSIDER MAKING INDIRECT TAX AS THE MAJOR SOURCE OF INCOME TN HONG KONG?

FS: WELL, WE LIKE TO KEEP OUR OPTIONS OPEN, SO I AM NOT GOING TO COMMIT MYSELF TO WHAT IS GOING TO HAPPEN BETWEEN NOW AND 1997. BUT I THINK I HAVE SAID FAIRLY CLEARLY THAT THE SALES TAX IN PARTICULAR, WE WILL HAVE TO BE ABLE TO PERSUADE PEOPLE THAT WE HAD A REAL NEED TO INTRODUCE THAT TAX AND I DON’T BELIEVE THAT I COULD DO THAT AT THE MOMENT.

QUESTION: GOOD MORNING FINANCIAL SECRETARY. TN RECENT YEARS, THE HONG KONG GOVERNMENT HAS BEEN PRODUCING TIGHT BUDGETS, THEREFORE THE PAY FOR CIVIL SERVANTS HAS BEEN DEPRESSED BY SOME 3.5 PER CENT, IT IS WELL KNOWN TO THE PUBLIC IN HONG KONG. BUT DO YOU UNDERSTAND THAT IN THE PAST ONE OR TWO YEARS, THE MORALE OF THE CIVIL SERVANTS, IN MY OPINION, HAS BEEN AFFECTED TO QUITE SOME EXTENT? NOW THAT WE HAVE SUCH A LARGE SURPLUS THIS YEAR, I WONDER IF YOU WOULD HONOUR THE PROMISE OF RETURNING THAT 3.5 PER CENT TO CIVIL SERVANTS?

/FS ........

THURSDAY, MARCH 4, 1993

31

FS: WELL, I DON’T THINK THERE IS ANY SUCH PROMISE, WE ARE RATHER CAREFUL ABOUT WHAT PROMISES WE MAKE. 1 CERTAINLY HAVE SOME SYMPATHY FOR THE ARGUMENT THAT WE HAVE TO BE VERY CAREFUL HOW WE TREAT THE CIVIL SERVICE BUT I BELIEVE THAT OVER THE YEARS THE SYSTEM THAT WE HAVE USED, ADMITTEDLY WITH THE OCCASIONAL DEPARTURE FROM IT, HAS SERVED THE CIVIL SERVICE WELL. I MEAN THE CIVIL SERVICE PAY HAS GONE UP IN REAL TERMS, JUST AS THE PAY OF THE PRIVATE SECTOR HAS GONE UP IN REAL TERMS. BUT WE WILL HAVE TO SEE WHAT THE FIGURES TURN OUT THIS YEAR. BUT I AM CERTAINLY AGAINST PAYMENTS WHICH SEEK TO MAKE UP FOR ANY PAST PERCEIVED REDUCTIONS. WE HAVE, I THINK IT IS TRUE, ALWAYS GIVEN INCREASES WHICH ARE AT LEAST THE LEVEL OF INFLATION, AND SOMETIMES CONSIDERABLY MORE, I DON’T THINK THAT IS UNREASONABLE.

QUESTION: GOOD MORNING, MR FINANCIAL SECRETARY. I WOULD LIKE TO PUT A QUESTION REGARDING THE DEPENDANT BALANCE ALLOWANCE. WE ARE NOT SUPPOSED TO GET THE DEPENDANT BALANCE ALLOWANCE BECAUSE OUR PARENTS ARE NOT RESIDENT IN HONG KONG, AND ACCORDING TO TERMS AND CONDITIONS OF OUR CONTRACT WE ARE NOT ALLOWED TO BRING OUR PARENTS TO HONG KONG; OUR PARENTS ARE STILL IN OUR COUNTRY BUT WE ARE SUPPORTING THEM.

FS: I SEE, I UNDERSTAND YOUR PROBLEM. IT IS NOT ONE THAT I WOULD SEEK TO ADDRESS NORMALLY IN THE BUDGET, BUT I AM QUITE HAPPY, IF WE HAVE YOUR NUMBER, TO GET THE INLAND REVENUE DEPARTMENT PERHAPS TO RING YOU BACK WITH A VIEW ON THAT. I THINK, YOU KNOW OFF THE CUFF, THE PROBLEM WITH EXTENDING IT TO NON-RESIDENT PARENTS WOULD BE THE DIFFICULTY OF ENFORCEMENT, IT COULD BE A MAJOR LOOPHOLE, BUT I CAN CERTAINLY GET SOMEONE TO HAVE A LOOK AT YOUR PROBLEM.

QUESTION: THANK YOU FOR OFFERING ME A CHANCE TO ASK YOU A QUESTION. I HAVE A FRIEND WITH TWO CHILDREN, THEY ARE HAEMOPHILIACS, BUT THEN IN YOUR BUDGET THEY WILL BE GIVEN SOME EX GRATIA PAYMENT; I AM INDEED HEARTENED BY THAT BUT MY FRIEND SAYS THAT IS NOT GOOD ENOUGH. EVERYDAY, IN ORDER TO TAKE GOOD CARE OF THE CHILDREN, MY FRIEND WILL HAVE TO GO TO THE HOSPITAL AND HE CANNOT REALLY TAKE UP A FULL-TIME JOB AND THEN HIS STANDARD OF LIVING IS NOT THAT HIGH. SO IT IS HOPED THAT ON THIS FRONT, THE FINANCIAL SECRETARY CAN TAKE EVEN BETTER CARE OF THEM TO SEE WHETHER MORE CONCESSIONS CAN BE GRANTED TO THEM, FOR EXAMPLE ON THE MEDICAL FRONT. WELL, I THINK THE INCUMBENT FINANCIAL SECRETARY IS A GOOD PERSON, HE IS CONCERNED ABOUT THIS HANDFUL OF HAEMOPHILIACS, THAT SHOWS THAT HE IS A CARING FINANCIAL SECRETARY. WE ARE NOT TALKING ABOUT A LARGE NUMBER OF PEOPLE.

FS: THANK YOU. WE DO RECOGNISE THAT THIS IS A SERIOUS PROBLEM. THE 350 MILLION WHICH I ANNOUNCED IS WHAT I WAS ADVISED WOULD BE SUFFICIENT, FOR A RANGE OF THINGS, NOT JUST DIRECT PAYMENTS BUT ALSO SERVICES TO HELP THOSE PEOPLE AND THOSE FAMILIES WHO ARE AFFECTED BY THIS ILLNESS. BUT AGAIN, I AM OPEN TO ARGUMENT, IF THE MONEY PROVES TO BE INADEQUATE WE ARE QUITE READY TO HAVE ANOTHER LOOK AT IT, BUT I THINK WE HAVE TO SEE HOW THAT FUND WORKS AND HOW ADEQUATE IT IS BEFORE WE LOOK AT ANY INCREASE. BUT IF THERE ARE PROBLEMS, LET US KNOW ABOUT THEM.

KIT CUMMMINGS: THANK YOU VERY MUCH TO THE FINANCIAL SECRETARY, MR HAMISH MACLEOD.

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/32 ........

THURSDAY, MARCH 4, 1993

32

MORE EMIGRANTS RETURN TO HK ♦ * * * *

THE NUMBER OF EMIGRANTS WHO HAVE RETURNED TO HONG KONG HAS INCREASED SUBSTANTIALLY OVER THE PAST TWO YEARS, A GOVERNMENT SPOKESMAN SAID TODAY (THURSDAY).

ANNOUNCING THE LATEST STATISTICS ON EMIGRATION, HE SAID AT LEAST 12 PER CENT OF PERSONS WHO EMIGRATED DURING THE PAST 10 YEARS HAD RETURNED SUBSEQUENTLY TO HONG KONG.

THE FINDING IS DRAWN FROM GENERAL HOUSEHOLD SURVEYS CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT OVER DIFFERENT PERIODS.

”A SURVEY IN THE FIRST QUARTER OF 1992 FOUND THAT THE NUMBER OF RETURNED EMIGRANTS WHO OBTAINED THE RIGHT OF RESIDENCE ABROAD DURING THE YEARS 1982/1991 WAS 43,000," THE SPOKESMAN SAID.

A SIMILAR SURVEY CONDUCTED IN THE SECOND QUARTER OF 1990, AND COVERING THE YEARS 1980/1989, SHOWED ONLY 24,000 HAD RETURNED.

"COMPARING THE TWO SETS OF FIGURES SUGGESTS THAT THE NUMBER OF RETURNED EMIGRANTS HAS INCREASED SIGNIFICANTLY OVER THE PAST TWO YEARS," HE SAID.

THE SPOKESMAN DID CAUTION, HOWEVER, THAT THE FIGURES WERE SUBJECT TO UNDER-REPORTING AND COULD BE AFFECTED BY THE DIFFERENCE IN THE TIME OF YEAR AND IN THE SIZE OF THE "POOL" OF EMIGRANTS OUTSIDE HONG KONG WHEN THE TWO SPECIAL ENQUIRIES WERE CONDUCTED.

THE INCREASE IN THE NUMBER OF RETURNED EMIGRANTS WAS ACCOMPANIED BY A DROP IN THE NUMBER OF APPLICATIONS FOR IMMIGRATION VISAS LODGED WITH THE CONSULATES OF SOME OF THE MAJOR DESTINATION COUNTRIES LAST YEAR.

"BUT BECAUSE OF THE BACKLOG WHICH HAS BEEN CARRIED FORWARD FROM PREVIOUS YEARS, THE DROP IS UNLIKELY TO BE REFLECTED IN THE NUMBER OF EMIGRANTS THIS YEAR," THE SPOKESMAN SAID.

HE ADDED THAT AN ESTIMATED 60,000 PEOPLE EMIGRATED FROM HONG KONG IN 1991, WHILE THE PROVISIONAL ESTIMATE FOR 1992 WAS 66,000.

THE 10 PER CENT INCREASE IN THE PROVISIONAL ESTIMATE FOR 1992 OVER THE 1991 FIGURE WAS ATTRIBUTABLE TO THE DEPLOYMENT OF ADDITIONAL RESOURCES BY SOME CONSULATES TO PROCESS VISA APPLICATIONS, THE SPOKESMAN EXPLAINED.

"THE FALL IN THE NUMBER OF NEW APPLICATIONS FOR EMIGRATION WILL PROBABLY BEGIN TO HAVE AN EFFECT ON EMIGRATION THIS YEAR," THE SPOKESMAN SAID. HE EXPECTED THE EMIGRATION LEVEL TO DROP BELOW 60,000 THIS YEAR.

HE ADDED THAT THE STATISTICS WERE BASED ON THE NUMBER OF VISAS ISSUED BY THE MAIN DESTINATION COUNTRIES, TAKING INTO CONSIDERATION THE LEAD TIME NEEDED FOR THE VISAS TO BE TAKEN UP BY THE EMIGRANTS.

--------0

/33 ........

THURSDAY, MARCH 4, 1993

33 TRADE OFFICIALS VISIT GUANGDONG *****

THE DIRECTOR-GENERAL OF TRADE, MR DONALD TSANG, THIS (THURSDAY) MORNING LEFT HONG KONG FOR A WEEK-LONG FAMILIARISATION VISIT IN GUANGDONG PROVINCE.

’’THE ECONOMIC TRANSFORMATION IN SOUTHERN CHINA WILL GENERATE WEALTH NOT ONLY FOR PEOPLE THERE, BUT FOR ALL BUSINESSMEN IN THE REGION WHO APPRECIATE AND EXPLORE THIS OPPORTUNITY,” MR TSANG SAID, BEFORE THE VISIT.

HE SAID IT WAS MOST IMPORTANT THAT PEOPLE IN HONG KONG WERE FULLY AWARE OF THE POTENTIAL.

"THE ECONOMIC SYNERGISM BETWEEN HONG KONG AND SOUTHERN CHINA WILL GENERATE TREMENDOUS ECONOMIC GROWTH. WHAT WE HAVE SEEN SO FAR IS THE TIP OF AN ICEBERG WHICH WILL SURFACE AT AN ACCELERATED PACE IN THE COMING DECADE.”

MR TSANG SAID THE PURPOSE OF THE VISIT WAS TO SEE THE LATEST ECONOMIC DEVELOPMENTS TN THE PEARL RIVER ESTUARY AND GET A BETTER UNDERSTANDING OF THE TRADE AND ECONOMIC SYSTEMS THAT HAD BEEN PUT IN PLACE.

THE EIGHT-MEMBER DELEGATION, LED BY MR TSANG, WILL VISIT GUANGZHOU, FOSHAN, JIUJIANG, SHUNDE, ZHONGSHAN AND JIANGMEN.

-----0--------

VOLUNTARY WORK BENEFITS ELDERLY AND YOUNGSTERS

*****

VOLUNTEER WORK CAN GIVE THE ELDERLY A SENSE OF PRIDE AND AN OPPORTUNITY TO CONTRIBUTE THEMSELVES TO THE COMMUNITY, MRS PATTEN SAID TODAY (THURSDAY).

IT ALSO HELPS THE YOUNGSTERS DEVELOP AN AWARENESS OF THE NEEDS OF SOCIETY AND A SENSE OF CIVIC RESPONSIBILITY.

SPEAKING AT THE HELPING HAND ’’COOKIE CAMPAIGN" THANK-YOU TEA RECEPTION, MRS PATTEN SAID THE CAMPAIGN LAST YEAR WAS THUS NOT ONLY A FUND-RAISING ACTIVITY FOR ELDERLY WELFARE BUT ALSO AN EXPERIENCE IN VOLUNTEERISM FOR ALL AGES.

SHE SAID THE ELDERLY WERE ENTITLED TO SPECIAL PRIORITY FOR SERVICES AND AN AGING POPULATION TN HONG KONG MEANT THAT MORE RESIDENTIAL AND COMMUNITY CARE SERVICES WOULD BE REQUIRED FOR THE ELDERLY.

THESE SERVICES WILL EXPAND SIGNIFICANTLY TN THE YEARS AHEAD, SHE SAID, ADDING THAT MORE INNOVATIVE SERVICES WOULD BE NEEDED.

TO THIS END, THE GOVERNMENT IS PROVIDING RECURRENT FUNDING FOR A NEW HOLIDAY CENTRE FOR THE ELDERLY AT CHEUNG MUK TAU.

/THE CENTRE .......

THURSDAY, MARCH 4, 1993

34

THE CENTRE, RUN BY THE HELPING HAND WITH ITS CAPITAL COST FUNDED BY THE SPECIAL GOLD COIN FUND, IS DUE TO BE COMPLETED BY THE MIDDLE OF THIS YEAR.

MRS PATTEN SAID THE PROMOTION OF ELDERLY WELFARE REQUIRED THE CONCERTED EFFORTS OF THE COMMUNITY.

SHE THANKED EVERYONE INVOLVED IN ORGANISING AND WORKING FOR THE COOKIE CAMPAIGN WHICH HELPED MOBILISE PEOPLE FROM ALL WALKS OF LIFE, INCLUDING THE ELDERLY THEMSELVES TO JOIN HANDS TO CARE FOR OTHERS IN SOCIETY.

-----0------

MOTORCYCLING IN COUNTRY PARKS ILLEGAL ♦ ♦ » * ♦

DRIVING MOTORCYCLES INSIDE COUNTRY PARKS WITHOUT PERMISSION IS AN OFFENCE PUNISHABLE BY A MAXIMUM FINE OF $2,000 AND THREE MONTHS’ IMPRISONMENT UPON CONVICTION.

THE REMINDER WAS ISSUED BY THE AGRICULTURE AND FISHERIES DEPARTMENT’S SENIOR COUNTRY PARKS OFFICER, MR LAI CHING-WAI, FOLLOWING THE ISSUE OF SUMMONSES TO TWO PERSONS FOUND RIDING CROSS-COUNTRY MOTORCYCLES IN MA ON SHAN COUNTRY PARK ON FEBRUARY 21.

MR LAI SAID: ’’UNDER THE COUNTRY PARKS AND SPECIAL AREAS REGULATIONS, ANY PERSON FOUND DRIVING MOTORCYCLES WITHOUT THE PERMISSION OF THE COUNTRY PARKS AUTHORITY IS LIABLE TO PROSECUTION.”

RIDING CROSS-COUNTRY MOTORCYCLES IN COUNTRY PARKS IS DANGEROUS TO BOTH VISITORS AND DRIVERS, HE SAID.

’’THE DEPARTMENT IS VERY CONCERNED ABOUT SUCH ILLEGAL ACTIVITIES AS THEY WOULD THREATEN THE SAFETY OF OTHER COUNTRY PARKS VISITORS, DAMAGE VEGETATION, CAUSE EROSION AND POLLUTE THE NATURAL ENVIRONMENT.

"OUR COUNTRYSIDE IS FOR US TO ENJOY AND NOBODY SHOULD BE ALLOWED TO DESTROY IT," HE ADDED.

MR LAI STRESSED THAT COUNTRY PARK WARDENS WOULD REMAIN VIGILANT AND TAKE APPROPRIATE ENFORCEMENT ACTIONS TO ENSURE PROPER PROTECTION OF THE COUNTRY PARKS.

IN THE PAST 12 MONTHS, EIGHT OTHER PEOPLE WERE CHARGED FOR RIDING MOTORCYCLES IN COUNTRY PARKS.

-----0------

/35 ........

THURSDAY, MARCH 4, 1993

35

MORE FUNDS FOR

NEW PERFORMING ARTS GROUPS WELCOMED * » » t »

CHAIRMAN OF THE COUNCIL FOR THE PERFORMING ARTS (CFPA), PROFESSOR WANG GUNGWU, WAS PLEASED WITH THE FINANCIAL SECRETARY’S ANNOUNCEMENT THAT $30 MILLION WOULD BE INJECTED INTO THE SIR DAVID TRENCH FUND FOR RECREATION FOR THE SPECIFIC PURPOSE OF HELPING THE DEVELOPMENT OF NEW PERFORMING ARTS GROUPS.

HE SAID THE INCOME GENERATED FROM THIS CAPITAL INJECTION WOULD BE A MOST WELCOME ADDITION TO THE EXISTING FUNDS ALLOCATED TO THE CFPA TO HELP NEW ARTS GROUPS DEVELOP.

ALTHOUGH THE CAPITAL INJECTION WILL NOT FORM PART OF ITS ANNUAL PROVISION FROM THE GOVERNMENT, THE CFPA WILL NEVERTHELESS BE ASKED TO ADVISE THE SECRETARY FOR RECREATION AND CULTURE ON THE PROPER DISBURSEMENT OF THIS ADDITIONAL FUND.

GOVERNMENT’S ANNUAL PROVISION TO THE CFPA BLOCK VOTE IN THE NEW FINANCIAL YEAR OF 1993/94 WILL BE $36.68 MILLION, AN INCREASE OF ABOUT 4 PER CENT FROM THE CURRENT YEAR'S PROVISION OF $35.14 MILLION.

OUT OF THIS, HOWEVER, A SUM OF $31 MILLION HAS BEEN EARMARKED FOR THE PROFESSIONAL AND SEMI-PROFESSIONAL GROUPS SUCH AS HONG KONG BALLET, CITY CONTEMPORARY DANCE COMPANY, CHUNG YING THEATRE COMPANY, HONG KONG ARTS FESTIVAL SOCIETY AND EXPLORATION THEATRE.

THE REMAINING $5.6 MILLION WILL BE LEFT FOR ALLOCATION TO OTHER NEW AND AMATEUR PERFORMING ARTS GROUPS TO SUPPORT THEM IN THEIR ACTIVITIES.

"EXPERIENCE HAS SHOWN THAT THIS IS NOT ADEQUATE," PROFESSOR WANG SAID.

THIS HAS LED TO GRIEVANCES AMONG THE PERFORMING ARTS GROUPS AND CRITICISM FROM THE ARTS COMMUNITY THAT INADEQUATE FUNDING MAY STIFLE THE GROWTH AND DEVELOPMENT OF NEW PERFORMING ARTS GROUPS, IN FAVOUR OF THE ESTABLISHED PROFESSIONAL GROUPS.

"WITH THE INJECTION OF THE ONE-OFF GRANT OF $30 MILLION TOWARDS THE SIR DAVID TRENCH FUND FOR RECREATION, THIS WILL GO A LONG WAY TOWARDS ASSISTING THE DEVELOPMENT OF THE NEW PERFORMING ARTS GROUPS IN FUTURE," HE SAID.

-----0------

/36 ........

THURSDAY, MARCH 4, 1993

36

VARIETY SHOW MARKS CLOSE OE EASTERN ARTS FESTIVAL * * * * ♦

A VARIETY SHOW AND AN EXH IB 1’1’ION AT THE PALM COURT, CITYPLAZA, THIS SUNDAY (MARCH 7) WILL MARK THE FINALE OF THE 17-DAY EASTERN DISTRICT ARTS FESTIVAL.

THE VARIETY SHOW, FROM 2 PM TO 5 PM, WILL FEATURE PERFORMANCES BY A BAND, POPULAR SINGERS AND AN "ERHU” PLAYER PLUS ON-STAGE DEMONSTRATIONS BY VETERAN MASTERS IN FLORAL ARRANGEMENT AND CHINESE CALLIGRAPHY.

WINNERS OF THE FOUR COMPETITIONS - CHILDREN’S DRAWING, CALLIGRAPHY, FLORAL ARRANGEMENT AND PHOTOGRAPHY - HELD DURING THE FESTIVAL WILL BE PRESENTED WITH PRIZES.

THEIR WINNING ENTRIES WILL BE PUT ON DISPLAY AT THE VENUE FROM 9 AM TO 8 PM.

ALSO PUT UP IN THE EXHIBITION ARE PRECIOUS PHOTOGRAPHS SUPPLIED BY THE MUSEUM OF HISTORY ON THE DISTRICT DATING BACK TO THE LATE 19TH CENTURY.

THE OFFICIATING GUESTS ARE EASTERN DISTRICT OFFICER, MR STEVE BARCLAY; DISTRICT BOARD CHAIRMAN, MR SHUM CHOI-SANG; URBAN COUNCILLOR, MS TING YUK-CHEE AND CHAIRMAN OF THE COMMUNITY BUILDING COMMITTEE OF THE DISTRICT BOARD, MR FU YUEN-CHEUNG.

THE FESTIVAL IS JOINTLY ORGANISED BY THE EASTERN DISTRICT BOARD, URBAN COUNCIL AND THE DISTRICT OFFICE AND SPONSORED BY THE EASTERN DISTRICT ARTS COUNCIL AND THE MUSIC OFFICE.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE EASTERN DISTRICT ARTS FESTIVAL CLOSING CEREMONY CUM ARTS AND CULTURAL VARIETY SHOW AT 2 PM THIS SUNDAY (MARCH 7) AT PALM COURT, CITYPLAZA.

-----0-------

NEW PHONE LINE INSTALLED

*****

THE DEPARTMENT OF HEALTH ANNOUNCED TODAY (THURSDAY) THAT WITH EFFECT FROM MONDAY (MARCH 8), THE TELEPHONE NUMBER FOR THE MATERNAL AND CHILD HEALTH CENTRE AT NGAU TAU KOK JOCKEY CLUB CLINIC IN KOWLOON WILL BE CHANGED TO ”750 4270”.

THE EXISTING NUMBER ”750 5410” WILL BE RETAINED SOLELY FOR THE GENERAL OUT-PATIENT DEPARTMENT OF THE CLINIC FROM THAT DATE.

-----0-------

/37 ........

THURSDAY, MARCH 4, 1993

37 -

FINANCE COMMITTEE MEETS TOMORROW

*****

THE FINANCE COMMITTEE WILL HOLD A MEETING AT 2.30 PM TOMORROW (FRIDAY) IN THE LEGISLATIVE COUNCIL CHAMBER.

MEMBERS OF THE PUBLIC ARE WELCOME TO OBSERVE THE PROCEEDINGS FROM THE CHAMBER’S PUBLIC GALLERY. THEY MAY RESERVE SEATS BY CALLING 869 9492.

NOTE TO EDITORS:

ADVANCE COPIES OF THE COMMITTEE’S PAPERS WILL BE AVAILABLE FOR THE MEDIA FROM 2.30 PM TODAY (THURSDAY) AT THE PRESS ROOM ON ThE FIRST FLOOR OF THE LEGISLATIVE COUNCIL BUILDING. PLEASE NOTE THAT THE CONTENTS OF THE PAPERS WILL BE EMBARGOED FOR USE UNTIL THE MEETING ENDS.

--------0-----------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE TN THE ACCOUNT 1,300

REVERSAL OF LAF +850

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTTON/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -730

CLOSING BALANCE IN THE ACCOUNT 1,420

LAF RATE 2.00 BID/4.00 OFFER TWI 113.9

*+0.2*

4.3.93

/HONG KONG

THURSDAY, MARCH 4, 1993

38

HONG KONG GOVERNMENT EXCHANGE EUNI)

EF BILLS HONG KONG GOVERNMENT RONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.26 PCT 15 MONTHS 2405 5.50 102.64 3.27

1 MONTH 2.54 PCT 18 MONTHS 2408 5.50 101.45 3.38

3 MONTHS 2.85 PCT 21 MONTHS 2411 4.375 101.79 3.56

6 MONTHS 3.96 PCT 24 MONTHS 2502 4.625 101.85 3.79

12 MONTHS 3.26 PCT

TOTAL TURNOVER OE BILLS AND BONDS - 13,705 MN

CLOSED MARCH 4, 1993

0

Received by PRO

on - 9 MAR 1993

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

FRIDAY, MARCH 5, 1993

CONTENTS PAGE NO.

GOVERNOR MAKES STATEMENT TO LEGCO ............................... 1

SUPPLEMENT TO COMPENDIUM ON ELECTORAL ARRANGEMENTS RELEASED . 10

MORE RESOURCES FOR TRANSPORT INFRASTRUCTURE .................... 11

POSSIBLE IMPACT ON HK IF CHINA LOST MFN STATUS ................. 13

GOVERNMENT TO REVIEW PUBLIC WORKS PROCEDURES ................... 14

PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCES REVISED ......... 17

WHITE PAPER ON HONG KONG ANNUAL REPORT 1992 TO PARLIAMENT ... 20

MOTHER TERESA CALLS ON HK PEOPLE TO LOVE AND SERVE ............. 21

CROSS BORDER SECURITY CO-OPERATION ............................. 21

PROVISIONAL FIGURES ON RETAIL SALES FOR DECEMBER ............... 22

FEES UNDER GAMBLING AND NEWSPAPERS REGISTRATION LAWS GO UP .. 25

FOUR LOTS FOR PUBLIC AUCTION ................................... 27

ROAD CLOSURE FOR URBAN RENEWAL PROJECTS ........................ 28

WORKS TO IMPROVE TOLO HARBOUR WATER QUALITY .................... 28

NEW FOOTBRIDGE AT CLEAR WATER BAY ROAD ......................... 29

SPECIAL SCHOOLS FOR KWAI CHUNG AND TSING YI .................... 30

TENDERS INVITED FOR OPEN SPACE CONSTRUCTION .................... 30

PREQUALIFICATION OF TENDERERS FOR PARKING METER MANAGEMENT .. 31

FARM LAND IN YUEN LONG TO BE RESUMED ........................... 32

GREAT IMPORTANCE ATTACHED TO CAREERS EDUCATION ................. 32

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 33

FRIDAY, MARCH 5, 1993

1

GOVERNOR MAKES STATEMENT TO LEGCO

*****

FOLLOWING JS THE STATEMENT BY THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, TO THE LEGISLATIVE COUNCIL TODAY (FRIDAY):

MR PRESIDENT - AND CAN I SAY STRAIGHTAWAY WHAT A PLEASURE IT IS TO USE THOSE WORDS ABOUT YOU FOR THE FIRST TIME - MR PRESIDENT. I HAVE AN ANNOUNCEMENT TO MAKE THIS AFTERNOON TO FULFIL MY PROMISE TO HONOURABLE MEMBERS TO KEEP THEM INFORMED OF PROGRESS ON CONSTITUTIONAL DEVELOPMENT ISSUES. HONOURABLE MEMBERS WILL HAVE HEARD A NUMBER OF STATEMENTS MADE BY SENIOR CHINESE OFFICIALS IN THE LAST FEW DAYS AND I THINK IT IS INCUMBENT ON ME TO SET OUT THE POSITION AS WE SEE IT.

HAVE TAKEN

AS HONOURABLE MEMBERS PLACE IN RECENT WEEKS IN

WILL KNOW, DIPLOMATIC PEKING. OUR AIM HAS

CONTACTS

BEEN TO

EXPLORE WHETHER A FIRM AND PRODUCTIVE BASIS COULD BE FOUND FOR THE TWO SIDES TO ENTER FORMAL TALKS ON THE ARRANGEMENTS FOR THE 1994/95 ELECTIONS. IN ANNOUNCING LAST WEEK THAT THE BILL EMBODYING THOSE ARRANGEMENTS WOULD NOT BE PUBLISHED ON 26 FEBRUARY, THE GOVERNMENT PROMISED TO SET OUT THE REASONS FOR THE DELAY. I WOULD LIKE TO EXPLAIN TO HONOURABLE MEMBERS THIS AFTERNOON, EXACTLY WHERE WE NOW STAND.

SINCE MY POLICY ADDRESS LAST OCTOBER, WE HAVE MADE CLEAR THAT WE ARE READY TO TALK AT ANY TIME AND WITHOUT PRECONDITIONS IN AN EFFORT TO REACH AN UNDERSTANDING WITH THE CHINESE SIDE ON THESE ELECTORAL ARRANGEMENTS. THIS COUNCIL IS ALREADY EXAMINING THE BOUNDARIES AND ELECTION COMMISSION BILL. EXCO ENDORSED, ON 2 FEBRUARY DRAFT LEGISLATION EMBODYING THE REMAINDER OF THE CONSTITUTIONAL PROPOSALS THAI’ 1 MADE ON 7 OCTOBER. SO THERE IS NO MYSTERY ABOUT WHAT THE DRAFT LEGISLATION CONTAINS. WE PASSED A COPY OF IT TO THE CHINESE SIDE ON 6 FEBRUARY. AT THE SAME TIME WE REPEATED FORMALLY OUR WILLINGNESS TO TALK AT ANY TIME WITHOUT PRECONDITIONS; AND WE EXPLAINED TO THE CHINESE SIDE THAT THE BILL WAS READY FOR GAZETTING.

WE RECEIVED A POSITIVE RESPONSE ON THE PRINCIPLE OF TALKS FROM THE CHINESE: SIDE. TO HELP ENSURE THAT TALKS GOT OFF TO THE BEST POSSIBLE START, I THEREFORE DECIDED, WITH THE ADVICE OF THE EXECUTIVE COUNCIL, TO POSTPONE OUR ORIGINAL PLAN FOR GAZETTAL ON 12 FEBRUARY, WHILE MAKING CLEAR TO THE CHINESE SIDE THAT THERE COULD NOT BE AN INDEFINITE DELAY, GIVEN THE PRACTICAL NEED TO PRESS AHEAD WITH LEGISLATION. WE PROPOSED AN EARLY STARTING DATE FOR. THE TALKS AND TOLD THE CHINESE SIDE OF THE COMPOSITION OI OUR NEGOTIATING TEAM.

IN THE ABSENCE OF A CHINESE RESPONSE, I DECIDED, WITH THE ADVICE OF EXCO, TO DELAY GAZETTAL FOR A SECOND TIME ON 19 FEBRUARY AND FOR A THIRD TIME ON 26 FEBRUARY. WE WISHED TO GIVE EVERY POSSIBLE OPPORTUNITY FOR THE CHINESE SIDE TO RESPOND. IN MY JUDGEMENT, HONOURABLE MEMBERS AND THE COMMUNITY WOULD EXPECT US TO GO THE EXTRA MILE IN AN EFFORT TO SECURE PRODUCTIVE TALKS WITH THE CHINESE GOVERNMENT.

/AT THE ........

FRIDAY, MARCH 5, 1993

2

AT THE BEGINNING OF TH IS WEEK, WE DID RECEIVE A REPLY. BUT DESPITE FURTHER DIPLOMATIC CONTACTS, IN WHICH WE HAVE CONTINUED TO PRESS FOR EARLY TALKS, WE HAVE NOT YET BEEN ABLE TO ANNOUNCE A STARTING DATE' FOR THEM. WE HAVE MADE PLAIN THAT WE ARE READY FOR I HE TALKS TO PROCEED ON THE BASIS OF THE JOINT DECLARATION, THE PRINCIPLE OF CONVERGENCE WITH BASIC LAW AND THE RELEVANT UNDERSTANDINGS AND AGREEMENTS REACHED BETWEEN CHINA AND BRITAIN. WE CONSIDER OUR PROPOSALS ARE WHOLLY COMPATIBLE WITH THESE AS, FOR EXAMPLE, I MADE CLEAR WHEN I ADDRESSED THE LEGISLATIVE COUNCIL ON 24 OCTOBER LAST YEAR.

I THOUGHT IT ONLY RIGHT TO GIVE HONOURABLE MEMBERS AN ACCOUNT OF WHERE WE NOW STAND. AS FAR AS WE ARE CONCERNED WE ARE READY TO TALK IMMEDIATELY. FOLLOW I NG FURTHER EXCHANGES IN PEKING THIS WEEK, THERE REMAIN ONLY A FEU POINTS OF DISAGREEMENT WHICH COULD AND SHOULD BE RESOLVED QUICKLY.

IN THE MEANTIME, WE JUDGE IT BEST TO DEFER GAZETTAL FOR A FOURTH TIME TODAY.

FOLLOWING IS THE TRANSCRIPT OF THE GOVERNOR’S QUESTIONS AND ANSWERS SESSION IN THE LEGISLATIVE COUNCIL:

MR SIMON IP: GOVERNOR, CAN YOU PLEASE ASSURE THIS COUNCIL THAT IF TALKS SHOULD COMMENCE, THAT THEY WILL NOT BE IN COMPLETE SECRECY AND THAT THIS COUNCIL WILL BE KEPT INFORMED AND WILL BE CONSULTED?

GOVERNOR: I THINK THAT THE FOREIGN SECRETARY MADE AN ADMIRABLY CLEAR POINT THE OTHER DAY, WHEN HE SAID THIS AND I QUOTE WHAT I THINK HE SAID AFTER A MEETING WITH THE HONOURABLE MEMBER AND SOME OF HIS COLLEAGUES IN LONDON. "THE DAYS WHEN THESE MATTERS", HE WAS REFERRING TO THE IMPORTANT CONSTITUTIONAL ISSUES, "THE DAYS WHEN THESE MATTERS CAN BE SETTLED BETWEEN LONDON AND PEKING WITHOUT TAKING ANY ACCOUNT OF OPINION IN HONG KONG HAVE OBVIOUSLY GONE. HONG KONG HAS CHANGED, HONG KONG CLEARLY HAS A GREATER WISH TO HAVE A SAY IN ITS OWN FUTURE". I THINK IT’S LEGITIMATE TO DRAW THIS DISTINCTION. I DON’T THINK WE CAN HOLD SECRET TALKS BUT I THINK THE COUNCIL WOULD UNDERSTAND THAT THE DETAIL OF THE DISCUSSIONS AS THEY CONTINUE HAS TO BE CONFIDENTIAL BUT AT THE END OF THOSE TALKS WE HAVE TO SET OUT, IF THEY TAKE PLACE AND IF THEY LEAD TO AGREEMENT, EXACTLY WHAT THE BASIS OF THAT IS AND I WOULD HOPE IN THOSE CIRCUMSTANCES THAT THE LEGISLATIVE COUNCIL WOULD AGREE THAT WE’D BEHAVED IN A SENSIBLE WAY FOR THE FUTURE INTERESTS OF HONG KONG.

MR ALLEN LEE: GOVERNOR I AGREE TO WHAT YOU SAID IN ANSWERING SIMON IP’S QUESTION, BUT GOVERNOR WOULD YOU INFORM THIS COUNCIL HOW THE GOVERNMENT WILL CONSULT THE PEOPLE OF HONG KONG AND THIS COUNCIL AS TO THE ACCEPTABILITY OF THE FINAL AGREEMENT REACHED BETWEEN THE BRITISH AND THE CHINESE GOVERNMENTS?

/GOVERNOR: ........

FRIDAY, MARCH 5, 1993

GOVERNOR:

I’VE BEEN IMPRESSED RY THE EXTENT TO

WHICH THE WHOLE COMMUNITY AND NOT JUST MEMBERS OE 1’11 IS COUNCIL HAVE

RESPONDED TO THE PROPOSALS WHICH WERE PLACED ON THE TABLE AT THE BEGINNING OE OCTOBER. HONOURABLE MEMBERS WILL KNOW THAI' MANY OE THE PROPOSALS WHICH ARE CONTAINED IN THE COMPENDIUM OF ALTERNATIVES THAT WE’VE PUT FORWARD, COME FROM MEMBERS OE THE COMMUNITY OUTSIDE THE

LEGISLATIVE COUNCIL. SO THERE IS HUGE INTEREST, QUITE PROPERLY ON BEHALF OF THE COMMUNITY IN HOW WE DEVELOP OUR POLITICAL INSTI TUT IONS.

BUT WHEN IT COMES TO ENACTING LEGISLATION, FOR EXAMPLE, AND LEGISLATION WILL BE THE BASIS FOR GOING FORWARD WITH THE ARRANGEMENTS FOR THE ’94 AND ’95 ELECTIONS THEN IT IS THIS COUNCIL WHICH REFLECTS THE VIEWS OF THE COMMUNITY. I THOUGHT THE HONOURABLE MEMBER AND SOME OF HIS COLLEAGUES AND THE HONOURABLE MEMBER SITTING IN FRONT OF ME, MADE THE POINT EXTREMELY WELL THIS WEEK WHEN THEY EXPLAINED THE CONSTITUTIONAL REALITIES OF HONG KONG AND WE MUSI’ REMEMBER THE CONSTITUTIONAL REALITIES AREN "I’ JUST AS DRY AS DUST ARGUMENTS IN LEGAL TEXTBOOKS, THEY’RE ABOUT THE HEARTS AND MINDS OF THE PEOPLE OF THE COMMUNITY. SO AT THE END OF THE DAY WE’LL OBVIOUSLY BE DEBATING TN THE LEGISLATIVE COUNCIL PROPOSALS FOR THE ’94 AND ’95 ELECTIONS, I HOPE PROPOSALS WHICH ARE THE RESULT OF SUCCESSFUL TALKS WITH ('ll INA IF THOSE TAKE PLACE. WE WON’T BE ABLE TO TAKI- THAT DEBATE IN A FORMAL SENSE OUTSIDE TH IS COMMUNITY, THOUGH THE WHOLE COMMUNITY WILL BE EXTREMELY INTERESTED IN THE OUTCOME.

MR FRED LI (THROUGH INTERPRETOR): MR (’HAIRMAN, THIS IS NOW THE FOURTH TIME THAT WE ARE DEFERRING THE GAZETTING OE THE BILL. WE HAVE SOME TIME CONSTRAINTS NOW, GOVERNOR, WHEN DO YOU EXPECT WILL BE THE LATEST DATE FOR THE LEGCO TO PASS THIS REFORM BILLS AND WITH REGARD TO THE SUBSTANCE OR CONTENT OF THE NEGOT I ATIONS, WILL THE CONTENT BE AS THE SEVEN ITEMS INCLUDED IN YOUR POLICY ADDRESS DELIVERED IN OCTOBER?

GOVERNOR: THE HONOURABLE MEMBER IS QUITE RIGHT IN SAYING THAT THE FACT THAT WE HAVE DEFERRED GAZETTAL FOR FOUR FRIDAYS RUNNING, SUGGESTS THAT WE’RE PROCEEDING WITH GREAT CARE. NOBODY COULD ACCUSE US OF RUSHING AHEAD, WE HAVE DONE ALL WE CAN TO BE CONCILIATORY, TO PROVIDE EVERY OPPORTUNITY FOR TALKS. I DON’T THINK

ONE SHOULD BELIEVE HOWEVER THAT TO BE AS POSITIVE AND CONSTRUCTIVE AND CONCILIATORY AS WE HAVE BEEN MEANS THAT ONE ABANDONS ANY OF ONE’S PRINCIPLES. I THINK ONE’S PRINCIPLES ARE PERHAPS BETTER ADVOCATED WHEN ONE’S ABLE TO DO SO IN THE RATIONAL AND POSITIVE SPIRIT WHICH WE’VE SHOWN IN THE LAST FEW WEEKS AND WHICH I TRIED TO SET OUT IN MY SPEECH TO THE LEGISLATIVE COUNCIL LAST OCTOBER. I REFER HONOURABLE MEMBERS, FOR EXAMPLE, TO PARAGRAPH 12R OF MY SPEECH ON THAT OCCASION. WHILE WE HAVE DEFERRED GAZETTAL FOUR FRIDAYS, WE OBVIOUSLY CAN’T DEFER GAZETTAL INDEFINITELY. THE MORE WE DEFER GAZETTAL, THE LESS TIME THERE IS FOR ANY TALKS WHICH MAY, I HOPE, TAKE PLACE. BECAUSE AFTER TALKS, Will ('ll I’M SURE THE WHOLE COUNCI L HOPES WILL TAKE PLACE AND PRODUCE AN OUTCOME WHICH IS FA IR AND OPEN AND ACCEPTABLE TO THE PEOPLE OF HONG KONG AND ACCEPTABLE IN LONDON AND ACCEPTABLE IN PEKING, AFTER THOSE TALKS WE WILL HAVE TO ENACT LEGISLATION AND IF ONE WORKS BACK FROM THE END OF THE PROCESS, ONE SEES THAT WE’RE NOT DEALING WITH INFINITY. WE’RE DEALING WITH A CALENDAR IN WHICH THE HONG KONG CLOCK

TICKS JUST AT THE SAME PACE AS THE ONE IN PEKING AND THE ONE IN

LONDON.

/GOVERNOR: ........

FRIDAY, MARCH 5, 1993

GOVERNOR: THERE WAS ONE LAST POINT WHICH I AM VERY ANXIOUS TO RESPOND TO BUT I WAS SO TAKEN WITH MY METAPHOR ABOUT CLOCKS THAT 1 WENT ON EOR LONGER THAN THE CLOCK SHOULD HAVE ALLOWED. THE PROPOSALS THAT I PUT FORWARD IN OCTOBER, PROPOSALS WHICH HAVE BEEN DEBATED IN THIS COUNCIL, PROPOSALS WHICH ON AT LEAST TWO OCCASIONS RECEIVED THE BROAD ENDORSEMENT OF THIS COUNCIL, PROPOSALS WHICH WERE ENDORSED BY THE EXECUTIVE COUNCIL IN EARLY FEBRUARY, THOSE PROPOSALS HAVE BEEN AND ARE ON THE TABLE. I HOPE THAT IF THERE ARE TALKS WE WILL LEARN WHAT ALTERNATIVE PROPOSALS CHINESE OFFICIALS HAVE TO PUT ON THE TABLE, I THINK THE WHOLE COMMUNITY WOULD BE INTERESTED IN THAT.

DR YEUNG SUM (THROUGH INTERPRETER): THANK YOU MR PRESIDENT. COULD I ASK THE GOVERNOR THIS: NOW THE CHINESE GOVERNMENT HAS REPEATEDLY STATED THAT ONCE THE 94/95 ELECTION ARRANGEMENTS HAVE BEEN AGREED TO, THEN THE BRITISH GOVERNMENT AND THE HONG KONG GOVERNMENT MUST ENSURE THAT THEY BE IMPLEMENTED. NOW, WOULD YOU AGREE TO THIS PRE-CONDITION AND HOW COULD YOU, DURING THE PROCESS, MAKE SURE THAT THE HONG KONG GOVERNMENT DOES PLAY A POSITIVE ROLE AND CAN INFLUENCE THE OUTCOME? OTHERWISE THE LEGISLATIVE COUNCIL WILL BECOME A RUBBER STAMP.

THE GOVERNOR: THE FOREIGN AND COMMONWEALTH OFFICE IN LONDON YESTERDAY MADE A STATEMENT IN WHICH, AMONG OTHER THINGS, THEY MADE IT ABSOLUTELY CLEAR, IN RESPONSE TO SOME NEWSPAPER STORIES, THAT THERE WAS NO QUESTION OF THE GOVERNOR OR THE LEGISLATIVE COUNCIL BEING CUT OUT OF DECISIONS ABOUT THE WAY HONG KONG IS GOVERNED. THEY MADE IT ABSOLUTELY CLEAR THAT THE GOVERNMENT AND THE EXECUTIVE COUNCIL HAS BEEN AND WOULD CONTINUE TO BE FULLY INVOLVED IN THE DEVELOPMENT OF POLICY ON THE POLITICAL DEVELOPMENT OF HONG KONG. AND THEY REFERRED, IN TERMS SIMILAR TO THOSE USED BY THE HONOURABLE MEMBER ON MY LEFT IN PEKING EARLIER THIS WEEK, TO THE LEGISLATIVE RESPONSIBILITIES OF THE LEGISLATIVE COUNCIL. CLEARLY, IF THERE ARE TALKS, WHICH WE HOPE TAKE PLACE, WE MUST ENTER THEM IN A POSITIVE AND CONSTRUCTIVE SPIRIT, AND I WOULD HOPE THAT TALKS WOULD LEAD '1’0 A SATISFACTORY CONCLUSION. 1 FIND IT INCONCEIVABLE TO IMAGINE CIRCUMSTANCES IN WHICH WE THOUGHT THAT A SATISFACTORY CONCLUSION WOULD NOT BE ACCEPTABLE TO THE LEGISLATIVE COUNCIL AND THE PEOPLE OF HONG KONG. SATISFACTORY CONCLUSIONS WHICH AREN’T ACCEPTABLE IN HONG KONG WOULD SEEM TO ME NOT TO BE ACCEPTABLE

TO ANYONE BECAUSE BOTH THE PRESENT AND THE FUTURE SOVEREIGN POWER MUST PRESUMABLY BE CONCERNED ABOUT PUBLIC’ SUPPORT IN HONG KONG FOR OUR GOVERNING I.NSTI TUT IONS. SO I HOPF THAT IF THERE ARE TALKS THEY LEAD

TO POSITIVE CONCLUSIONS, AND I VERY MUCH HOPE THAT THOSE POSITIVE CONCLUSIONS WOULD BE ENDORSED BY THE LEGISLATIVE COUNCIL. BUT I REPEAT, I CAN’T IMAGINE PUTT I NG FORWARD PROPOSALS AT THE END OF DISCUSSIONS WHICH I DIDN'T BELIEVE AND WHICH THE BRITISH GOVERNMENT DIDN’T BELIEVE, WOULD BE ACCEPTABLE.

DR YEUNG SUM:

PLEASE, BECAUSE I’M ASKING --

SORRY, CAN I HAVE A FOLLOW-UP

THE PRESIDENT: I THINK TIME IS RUNNING SHORT.

THE GOVERNOR: WELL, WAS THERE A POINT I MISSED?

DR YEUNG SUM: I AM TALKING ABOUT HOW TO PREVENT LEGCO

BECOMING A RUBBER STAMP.

/THE GOVERNOR: .......

FRIDAY, MARCH 5, 1993

5

THE GOVERNOR: LEGCO, AS THE EXECUTIVE HAS DISCOVERED, IN BUDGET DEBATES, IN DISCUSSIONS ABOUT BUDGETS AND SO ON OVER THE LAST YEAR, IS ANYTHING BUT A RUBBER STAMP. I SAY TO HONOURABLE MEMBERS, AND I AM SURE YOU WON’T REGARD IT AS ABUSIVE, THERE ARE OCCASIONS WHERE THE GOVERNOR AND SOME OE HIS COLLEAGUES IN GOVERNMENT QUITE LIKE THE IDEA OF YOU BEHAVING A LITTLE MORE LIKE A RUBBER STAMP. BUT PART OF HONG KONG’S ADMIRABLE POLITICAL DEVELOPMENT IS THAT YOU ARE NOT A RUBBER STAMP FOR THE 28TH BRITISH GOVERNOR OF HONG KONG AND YOU WON’T BE A RUBBER STAMP AFTER 1997 EITHER, AND THAT IS WHAT PART OF THIS ARGUMENT IS ALL ABOUT. PART OF THE ARGUMENT IS ABOUT HOW WE ENSURE THE ACQUIESCENCE OF THE COMMUNITY IN SENSIBLE DECISIONS TAKEN ABOUT THE SHORT TERM AND LONG TERM INTERESTS OF HONG KONG - NO RUBBER STAMP HERE!

MR JIMMY MCGREGOR: GOVERNOR, CHINA TAKES THE POSITION THAT THE LEGISLATIVE COUNCIL HAS NO STANDING TN REGARD TO THE NEGOTIATION OF AGREEMENTS BETWEEN CHINA AND BRITAIN. WILL CHINA BE ADVISED BY THE BRITISH SIDE THAT ANY AGREEMENT BETWEEN THE TWO SOVEREIGN GOVERNMENTS MUST BE FINALLY APPROVED BY THE EXECUTIVE AND THE LEGISLATIVE COUNCILS AND THAT CONCEIVABLY, CHANGES COULD BE MADE IN ANY AGREEMENT REACHED IN ACCORDANCE WITH THE WILL OF THIS COUNCIL AND THAT THAT SHALL BE UNDERSTOOD TO THE CHINESE SIDE BEFORE THESE TALKS BEGIN?

THE GOVERNOR: I HEARD - BEING A RELATIVELY EARLY RISER - I

HEARD THE HONOURABLE MEMBER ANSWERING THAT QUESTION EXTREMELY WELL ON

THE ’’TODAY” PROGRAMME THIS MORNING.

NONE OF US CAN CHANGE OR SEEK TO

CHANGE THE CONSTITUTIONAL REALITIES. ONE REALITIES IS, OF COURSE, THAT SOVEREIGN TOGETHER. ANOTHER OF THE REALITIES IS THAI'

OF THE CONSTITUTIONAL GOVERNMENTS NEGOTIATE THE PRESENT SOVEREIGN

GOVERNMENT,

AND I IMAGINE THE FUTURE SOVEREIGN GOVERNMENT, WOULD NOT

WISH TO COME TO A SOLUTION WHICH WAS NOT ACCEPTABLE TO THE LEGISLATORS

AND TO THE COMMUNITY OF HONG KONG WHICH THEY ARE TALKING ABOUT IN

THESE NEGOTIATIONS. SO I REPEAT WHAT 1 SAID A MOMENT OR TWO AGO, I

CAN’T IMAGINE CIR(’UMSTANCES IN WHICH THE BRITISH TEAM IN NEGOTIATIONS, IN WHICH THE BRITISH TEAM WHICH WILL, OF COURSE, INCLUDE PEOPLE WHO ARE HONG KONG GOVERNMENT OFFICIALS, I CAN’T IMAGINE CIRCUMSTANCES TN WHICH THE BRITISH TEAM AND THE BRITISH GOVERNMENT AND THE GOVERNOR OF HONG KONG WOULD REGARD AS ACCEPTABLE SOMETHING WHICH THEY DIDN’T THINK WOULD BE ACCEPTABLE TO THIS LEGISLATIVE COUNCIL. THAT IS NOT AN UNDERMINING OF THE SOVEREIGNTY OF THE PARTIES TO ANY TALKS, IT IS A STATEMENT OF POLITICAL REALITY. WHEN ONE TALKS ABOUT SOVEREIGNTY, WHEN ONE DEFINES SOVEREIGNTY, ONE CAN’T DO 1’1' AS THOUGH ONE WAS SPEAK I N(J IN A POLITICAL THEORY LABORATORY, ONI IS TALK I NG ABOUT PRACTICAL ISSUES AND I’VE DESCRIBED HOW III I NGS WILL OPERATE HERE IN HONG KONG. FOR ME TO DENY THAT WOULD BE SIMILAR TO ME DENYING THE WISDOM OF GALILEO OR THE FACT 'TIIA’T THERE IS A II ARBOUR IN HONG KONG.

MI.’ JIMMY MCGRI-GoR: SIR, IF I MAY A T. I DON’T THINK YOU HAVE

ANSWERED THE LITTLF BIT AT THE END. IN REGARD TO THE POSSIBILITY THAT THIS COUNCIL 'IIGHI SEEK TO CHANGE ANA ARRANGEMTMT REACHED BETWEEN THE BRITISH AND CH INI SE GOVERNMENTS AND THAT TIIA’T SHOULD B.E UNDERSTOOD BY ’Till - I REALISE Ol COURSE THERE IS THIS POINT IN REGARD TO OUR CONSTITUTIONAL POSITION - BUT THAI’ Till CHINESE GOVERNMENT SHALL UNDERSTAND THAT VERY CLEARLY FROM THE OUTSET, THAI CHANGES COULD BE MADE BA THIS COUNCIL WHEN THESE ARRANGEMENTS WERE BROUGHT DOWN HEIM',

IN TERMS OF LEGISLATION.

/THE GOVERNOR: ........

FRIDAY, MARCH 5, 1993

6

THE GOVERNOR: THIS COUNCIL CAN AMEND LEGISLATION THAT IS PUT BEFORE IT, AND IT CAN AMEND LEGISLATION THAT IS PUT BEFORE IT WHATEVER PEOPLE OUTSIDE HAPPEN TO SAY. I THINK IF THERE WAS AN AGREEMENT BETWEEN BRITAIN AND CHINA WHICH WAS BROADLY ACCEPTABLE, NOT ONLY TO BRITAIN AND CHINA BUT TO PEOPLE IN HONG KONG, THE COUNCIL WOULD PROBABLY THINK TWICE OR THREE TIMES OR MORE ABOUT AMENDING IT IN WAYS WHICH WOULD SEND BRITAIN BACK TO THE NEGOTIATING TABLE WITH CHINA TO SAY: IS THIS AMENDMENT ACCEPTABLE TO YOU? I THINK I AM STATING WHAT IS AN OBVIOUS SCENARIO. SO MY HUNCH IS, IF SOMETHING WAS ACCEPTABLE AND WAS THE RESULT OF AGREEMENT BETWEEN BRITAIN AND CHINA THE COUNCIL WOULD PROBABLY PASS IT. BUT THE HONOURABLE GENTLEMAN HAS DESCRIBED PRECISELY WHAT IS THE SITUATION TN THE ROYAL INSTRUCTIONS AND THE LETTERS PATENT.

DR TANG SIU-TONG: MR GOVERNOR, SINO-BRITISH TALKS ARE THROUGH DIPLOMATIC CHANNELS AND I WISH TO SUPPLEMENT WHAT DR YEUNG SUM HAS SAID. DURING THIS PERIOD HOW COULD YOU ENHANCE TRANSPARENCY? WILL YOU, AT DIFFERENT STAGES, INFORM THIS COUNCIL OF WHAT HAS BEEN ACHIEVED?

THE GOVERNOR: DURING VARIOUS STAGES OF THE DISCUSSIONS I WOULD OF COURSE ATTEMPT TO KEEP IN TOUCH WITH GROUPS OF LEGISLATIVE COUNCILLORS AND INDIVIDUAL LEGISLATIVE COUNCILLORS. BUT I MUST MAKE THIS CLEAR, I WOULDN’T BE IN A POSITION TN WHICH AFTER EVERY ROUND OF TALKS, IF TALKS TOOK PLACE, I COULD COME TO THE COUNCIL AND DESCRIBE EXACTLY WHAT HAD BEEN HAPPENING AROUND THE NEGOTIATING TABLE BECAUSE I THINK IF ONE WAS TO DO THAT ONE WOULD INTRODUCE AN ELEMENT INTO THE DIPLOMACY AND INTO THE NEGOTIATION WHICH WOULD BE FRANKLY UNACCEPTABLE TO BOTH SIDES. I DON’T THINK IT WOULD MAKE THE NEGOTIATIONS THEMSELVES POSSIBLE OR REASONABLE. BUT, I WOULD OBVIOUSLY NEED TO KEEP IN TOUCH WITH THE DEVELOPMENT OF THINKING IN THIS COUNCIL AND IN HONG KONG IN ORDER TO GIVE ADVICE DURING THE COURSE OF THE NEGOTIATIONS, IF THEY TAKE PLACE, ABOUT WHAT WAS LIKELY TO BE ACCEPTABLE AT THE END OF THE DAY IN HONG KONG. THAT SURELY DOESN'T NEED STATING, THAT SURELY IS ACCEPTABLE TO EVERYONE. AND AT THE END OF ANY NEGOTIATIONS, IF THEY TAKE PLACE, WHETHER THEY ARE SUCCESSFUL OR WHETHER THEY ARE NOT SUCCESSFUL, I WILL HAVE TO BE ABLE TO EXPLAIN TO THE COUNCIL WHAT HAS BEEN DONE, WHAT HAS BEEN ARGUED FOR TN THE NAME OF THE UNITED KINGDOM AND IN THE NAME OF HONG KONG, DEFEND IT, AND I HOPE THAT CONVINCE THE COUNCIL THAT THE RIGHT DECISIONS HAVE BEEN TAKEN.

MR SZETO WAH (THROUGH INTERPRETER): MR PRESIDENT, IF NEGOTIATIONS ARE TO RE-START, NOW CHINA HAS REPEATEDLY STATED THAT MR PATTEN’S REFORM PACKAGE MUST BE WITHDRAWN FIRST AND THAT BRITAIN MUST ASSURE CHINA THAT THE AGREEMENT WILL BE PASSED BY LEGCO, AND ALSO, BRITAIN STATED REPEATEDLY THAT THERE WILL BE NO PRE-CONDITIONS TO THE TALKS. NOW, ARE THE THINGS MENTIONED PRE-CONDITIONS? HAVE YOU DROPPED YOUR OWN REFORM PACKAGE? NOW IF TALKS ARE TO RE-START CAN WE SAY THAT CHINA HAS CHANGED ITS STAND, OR SHALL WE SAY THAT BRITAIN HAS CHANGED ITS STAND, OR CAN WE SAY THAT BOTH SIDES HAVE CHANGED THEIR STAND AND NOW THERE IS NOW A SECRET CONSENSUS?

/THE GOVERNOR: .......

FRIDAY, MARCH 5, 1993

7

THE GOVERNOR* THE HONOURABLE MEMBER KNOWS HOW DIPLOMATIC I AM AND I WOULD NOT SEEK TO ANSWER QUESTIONS ON CHINA’S BEHALF. IT IS FOR CHINESE OFFICIALS TO EXPLAIN THEIR_OWN _POS { TJON^WSTATE JHEIR. OWN

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ENTER INTO TALKS WITHOUT PRE-CONDITIONS. THE PROPOSALS MADE BY OF HONG KONG LAST OCTOBER, DEBATED AGAIN AND AGAIN ----------------------------------------------------- COUNCTL

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GOVERNOR ....

LEGISLATIVE COUNCIL, ENDORSED BY THE EXECUTIVE BEGINNING OF FEBRUARY, ARE STILL ON THE TABLE. PROCESS, COULD THEY NOT BE? OTHERS WILL HAVE 'IO EXPLAIN, ARE TALKS, WHAT THEIR POSITION IS. BUT I HAVE SET OUT, TO THE HONOURABLE MEMBER AND TO THIS HONOURABLE HOUSE EXACTLY EXACTLY WHAT THE GOVERNMENT OF HONG KONG S THE UNITED KINGDOM’S

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MR PANG CHUN-HOI(THROUGH INTERPRETER): MR PRESIDENT. MR GOVERNOR, FROM PAST EXPERIENCE WE KNOW THAT S1NO-BRITISH TALKS WILL HAVE TO BE CONFIDENTIAL. SO MY QUESTION IS, HOW COULD THIS COUNCIL AND THE PEOPLE OF HONG KONG LEARN ABOUT THE CONTENTS OF SUCH TALKS. THEN IN YOUR POLICY ADDRESS YOU HAVE STATED THAT WITH CONSTITUTIONAL DEVELOPMENT IT MUST BE OPEN, FAIR AND ACCEPTABLE TO THE PEOPLE OF HONG KONG. THESE ARE THE PRINCIPLES, WILL YOU BE ADHERING TO THESE PRINCIPLES AND HOW WOULD YOU MAKE SURE THAT THEY ARE KEPT TO?

GOVERNOR: THE FIRST QUESTION, I THINK THAT I ANSWERED EARLIER WHEN I WAS ASKED ABOUT HOW WE COULD KEEP THE COMMUNITY INFORMED AND 1 EXPLAINED Till' DIFFICULTY WHEN THE SOVEREIGN POWERS ARE INVOLVED IN DIFFICULT DIPLOMATIC NEGOTIATIONS AND I THINK THE COUNCIL, THOUGH IT WILL ALWAYS WANT US TO BE MORE TRANSPARENT RATHER THAN LESS TRANSPARENT UNDERSTANDS THE DIFFICULTIES OF BEHAVING IN THAT WAY WHEN NEGOTIATIONS ARE ACTUALLY TAKING PLACE. AS FOR THE QUESTION OF OPENNESS, OF FAIRNESS AND OF ACCEPTABILITY, THOSE REMAIN OUR OBJECTIVES FOR TALKS. I VERY MUCH HOPE THAT WE CAN COME OFF WITH PROPOSALS AT THE END OF THE DAY WHICH ARE OPEN AND FAIR AND ACCEPTABLE. I WOULD VERY MUCH HOPE THAT WE CAN MEET THOSE OBJECTIVES AND GET AN AGREEMENT WITH CHINA AND THAT THE POLITICAL INSTITUTIONAL CHANGES THAT RESULTED FROM THAT WOULD LAST THROUGH 1997 AND BE THE BASIS FOR THE GOOD GOVERNMENT OF HONG KONG FOR THE FORESEEABLE FUTURE. THAT IS MY ASPIRATION. IF THERE ARE TALKS, AND I UNDERLINE THAT WORD ’’IF" AGAIN, I DON’T THINK THAT ANYBODY SHOULD UNDERESTIMATE THE DIFFICULTY OF ACHIEVING THOSE OBJECTIVES. I DON’T SAY THAT IN A DEFEATIST WAY, I DON ”1’ SAY THAT BECAUSE IF THERE ARE TALKS I WILL ENTER THEM IN OTHER THAN THE SPIRIT OF OPTIMISM AND CONSTRUCTIVENESS AS FAR AS ONE CAN, BUT TALKS WILL BE VERY DIFFICULT. ACHIEVING THE OBJECTIVES I’VE SET OUT WILL BE VERY DIFFICULT AND IT WOULD BE WRONG AND DISHONOURABLE OF ME NOT TO MAKE THAT POINT TO THE COMMUNITY ABOUT ANY TALKS Will (’ll MAY TAKE PLACE. I DON’T WANT TO SOUND GLOOMY, I DON’T WANT TO SOUND PESSIMISTIC, BUT THESE ARE VERY DIFFICULT MATTERS, DIFFICULT FOR CH I NA AS WELL AS DIFFICULT FOR THE UNITED KINGDOM AND HONG KONG AND I HOPE THAT WE CAN APPROACH THEM IN A SPIRIT OF REALISM AS WELL AS WITH SUCH HOPE AS IS APPROPRIATE IN THESE CIRCUMSTANCES.

/MR RONALD ARCULLI: ........

FRIDAY, MARCH 5, 1993

8

MR RONALD ARCULLI: MR PRESIDENT. SINCE THE GOVERNOR’S POLICY ADDRESS JN OCTOBER LAST YEAR, THERE HAS BEEN MUCH DISCUSSION ABOUT THE GOVERNOR’S PROPOSALS FOR CONSTITUTIONAL REFORM, WITHOUT REALLY PUTTING TOO FINE A POINT ON WHETHER THERE IS MAJORITY OR MINORITY SUPPORT FOR THESE PROPOSALS, THERE IS TO SAY THE LEAST A SUBSTANTIAL BODY OF OPPOSITION AGAINST TWO ASPECTS, NAMELY THE NINE NEW FUNCTIONAL CONSTITUENCIES AND THE ELECTION COMMITTEE. WILL THE GOVERNOR PERHAPS ADVISE THIS COUNCIL HOW THESE OPINIONS WILL BE TAKEN INTO ACCOUNT DURING DISCUSSIONS WITH THE CHINESE GOVERNMENT?

GOVERNOR: OBVIOUSLY THOSE OPINIONS WILL BE TAKEN INTO ACCOUNT, JUST AS I’M SURE THE HONOURABLE MEMBER WOULD HOPE THAT THE OPINIONS OF THOSE WHO SUPPORTED THE GOVERNMENT’S PROPOSALS ON THOSE MATTERS WOULD BE TAKEN INTO ACCOUNT, JUST AS I HOPE WILL BE TAKEN INTO ACCOUNT THE FACT THAT THERE ARE MANY MEMBERS, NOT LEAST OF THIS LEGISLATIVE COUNCIL, WHO THINK THAT THE GOVERNOR AND THE GOVERNMENT HAVEN'T GONE NEARLY FAR ENOUGH IN THE PROPOSALS ON POLITICAL DEVELOPMENT THAT HAVE BEEN PUT FORWARD. I THINK THAT WE HAVEN’T ACTUALLY MET THE ASPIRATIONS OF THE PEOPLE OF HONG KONG FOR A GREATER SHARE IN DETERMINING THEIR OWN FUTURE. NEGOTIATORS, IF THERE ARE TALKS, WILL HAVE TO BE VERY BROAD-MINDED, WILL HAVE TO TAKE ACCOUNT OF THE BROAD SPECTRUM OF VIEWS IN THE COMMUNITY. I’M SURE THAT THE BRITISH TEAM, I'M SURE THAT THOSE NEGOTIATING ON THE BRITISH SIDE OF THE TABLE, INCLUDING THOSE MEMBERS OF THE TEAM WHO ARE HONG KONG GOVERNMENT OFFICIALS, WILL BE WELL AWARE OF THE FACT THAT WHEN THIS COUNCIL HAS DISCUSSED THE TWO PARTICULAR ISSUES THAT THE HONOURABLE MEMBER REFERS TO, THE COUNCIL HAS ON THE WHOLE GIVEN A FAIRLY POSITIVE RESPONSE, BUT I STATE THE OBVIOUS WHEN I SAY I WASN’T BORN YESTERDAY AND I’M AWARE OF THE FACT THAT THE HONOURABLE MEMBER IS AMONG THOSE WHO HAVE PERHAPS RESERVATIONS ABOUT THOSE TWO PARTICULAR ASPECTS OF MY PROPOSALS. THERE'RE AT THE HEART OF THE POLITICAL DEBATE, POLITICAL ARGUMENT WHEN IT COMES TO DISCUSSING THE PACKAGE, OR NEAR THE HEART OF IT AND I DON’T THINK THERE’S ANY POINT IN BEING SECRETIVE ABOUT THAT.

MR K. K. FUNG (THROUGH INTERPRETER) THANK YOU MR PRESIDENT, I HAVE A QUESTION FOR THE GOVERNOR. FROM THE STATEMENT MADE BY THE GOVERNOR, IT SAID THAT THERE SHOULD BE THREE BASES FOR THE TALKS, THAT IS THE JOINT DECLARATION, THEN THE BASIC LAW AND THEN ALSO UNDERSTANDING AGREEMENTS REACHED BETWEEN CHINA AND BRITAIN. SO MY QUESTION IS THERE ARE TWO THINGS THAT ARE DEFINITE, THAT IS JOINT DECLARATION AND THE BASIC LAW AND IT’S CLEARLY WRITTEN DOWN IN BLACK AND WHITE. AND YET THE LAST ONE IS ACTUALLY VARIABLES BECAUSE WE KNOW THAT THERE ARE SEVEN DIPLOMATIC EXCHANGES THAT’S KNOWN TO THE PEOPLE OF HONG KONG, BUT MY QUESTION IS NOW YOU TALK ABOUT UNDERSTANDING AGREEMENTS BETWEEN CHINA AND BRITAIN, DOES THAT INCLUDE THE SEVEN LETTERS. NOW IF THAT DOES NOT INCLUDE THOSE SEVEN, OR IT GOES BEYOND THOSE SEVEN, HOW MANY MORE ARE THERE AND IF THEY INCLUDE THOSE SEVEN LETTERS, NOW YOU DO TALK ABOUT THE ELECTION COMMITTEE AND YET THE PROPOSALS THERE DIFFER FROM YOUR PROPOSALS, MR GOVERNOR. SO IF YOU SAY THAT THE SEVEN EXCHANGES ARE INCLUDED, DOES THAT MEAN THAT YOU HAVE RELINQUISHED OR ABANDONED YOUR OWN PROPOSAL IN THIS RESPECT?

/GOVERNOR: .......

FRIDAY, MARCH 5, 1993

9

GOVERNOR: NO, IT DOESN’T. AS I HAVE EXPLAINED ON A NUMBER OF OCCASIONS THIS AFTERNOON. THE WORDS I USED WERE NOT CASUALLY PLUCKED OUT OF THE ETHER, THE WORDS I USED WERE VERY CAREFULLY USED, WERE VERY CAREFULLY CONSTRUCTED. I THINK IT IS CONCEIVABLE THAT IF TALKS TAKE PI,ACE THERE MAY BE SOME DISCUSSION ABOUT THE RELEVANT UNDERSTANDINGS AND AGREEMENTS REACHED BETWEEN CHINA AND BRITAIN. I HOPE THAT DISCUSSION DOESN’T TAKE TOO LONG BECAUSE I’D VERY MUCH LIKE TO SEE THE NEGOTIATIONS MAKE VERY RAPID PROGRESS BUT THERE MAY BE DISCUSSIONS ABOUT ALL THE WORDS PRETTY WELL IN THAT PHRASE, INCLUDING RELEVANT UNDERSTANDINGS AND AGREEMENTS AND YOU MAY BE AWARE OF THE FACT, THE HONOURABLE MEMBER MAY BE AWARE OF THE FACT, THAT THERE ARE SOME DIFFERENCES OF OPINION ABOUT WHAT EXACTLY THOSE WORDS MEAN. ONE OF THE UNDERSTANDINGS BETWEEN BRITAIN AND CHINA IS THAT WE SHOULD DISCUSS THE ARRANGEMENTS FOR THE 1995 ELECTIONS AND I WILL BE DELIGHTED IF FOUR MONTHS AFTER I CALLED FOR SUCH DISCUSSION, WHEN I SPOKE TO THE LEGISLATIVE COUNCIL AND ABOUT THREE AND A HALF MONTHS AFTER I WENT TO PEKING AND SAID THAT I WAS VERY HAPPY TO HAVE SUCH DISCUSSIONS, I WILL BE VERY HAPPY IF THOSE DISCUSSIONS COMMENCE. BUT I REPEAT WHAT I SAID EARLIER, ALAS, I’M NOT ABLE TO ANNOUNCE THE BEGINNING OF TALKS THIS AFTERNOON. I HOPE THAT THE REMAINING ISSUES THAT ARE OUTSTANDING BETWEEN US CAN BE RESOLVED SWIFTLY BECAUSE I DON’T THINK WE CAN DELAY INDEFINITELY THE GAZETTAL OF LEGISLATION AND THE PUTTING IN PLACE OF SENSIBLE ARRANGEMENTS FOR 1994 AND 95 ELECTIONS.

MR K.K. FUNG (THROUGH INTERPRETER): ANSWERED MY QUESTION, MR GOVERNOR.

I’M AFRAID YOU HAVEN’T

GOVERNOR: WELL, I’VE GIVEN THE ANSWER TO THE HONOURABLE GENTLEMAN THAT I’M GOING TO GIVE IT TO THE HONOURABLE GENTLEMAN. I THINK IT IS A PERFECTLY ADEQUATE ANSWER AND I’M SORRY THAT THE HONOURABLE GENTLEMAN DOESN’T AGREE, BUT IF THE HONOURABLE GENTLEMAN WISHES TO FOLLOW UP ANY PARTICULAR POINTS IN HIS QUESTION WHICH HE DOESN’T THINK THAT I HAVE ADEQUATELY ANSWERED, I’LL BE VERY HAPPY TO HEAR FROM HIM AND WILL RESPOND EITHER IN PUBLIC OR IN PRIVATE, WHICHEVER HE WOULD LIKE.

PRESIDENT: IN ACCORDANCE WITH

STANDING ORDERS I NOW ADJOURN THE SITTING UNTIL WEDNESDAY 10 MARCH, 1993.

-----0------

/10.........

FRIDAY, MARCH 5, 1993

- 10 -

SUPPLEMENT TO COMPENDIUM ON ELECTORAL ARRANGEMENTS RELEASED

******

THE GOVERNMENT TODAY (FRIDAY) RELEASED A SUPPLEMENT TO THE COMPENDIUM OF PROPOSALS ON ELECTORAL ARRANGEMENTS FOR 1994/95.

THE SUPPLEMENT CONTAINS AN ADDITIONAL 28 SUBMISSIONS TO THE 65 WRITTEN SUBMISSIONS IN THE COMPENDIUM PUBLISHED ON JANUARY 21 THIS YEAR, WHICH THE GOVERNMENT HAS RECEIVED SINCE THE GOVERNOR PRESENTED HIS PROPOSALS TN HIS ADDRESS TO THE LEGISLATIVE COUNCIL ON OCTOBER 7 LAST YEAR.

A GOVERNMENT SPOKESMAN SAID THE PURPOSE OF PUBLISHING THE SUPPLEMENT WAS TO PROVIDE A HANDY REFERENCE FOR MEMBERS OF THE LEGISLATIVE COUNCIL AND THE PUBLIC, WHEN THEY EXAMINED THE GOVERNMENT’S DRAFT LEGISLATION FOR THE 1994/95 ELECTIONS.

THE SPOKESMAN SAID COPIES OF THE SUPPLEMENT WOULD BE SENT TO MEMBERS OF THE EXECUTIVE COUNCIL, THE LEGISLATIVE COUNCIL, THE MUNICIPAL COUNCILS, AND THE DISTRICT BOARDS AND AUTHORS OF THE SUBMISSIONS WHICH WERE INCLUDED IN THE SUPPLEMENT.

COPIES WILL ALSO BE DEPOSITED WITH DISTRICT OFFICES AND PUBLIC LIBRARIES FOR PUBLIC INSPECTION.

THE SPOKESMAN SAID WHEN PUBLISHING THE COMPENDIUM, THE GOVERNMENT HAD EXPECTED TO RECEIVE FURTHER VIEWS.

THERE WERE ALSO SUBMISSIONS NOT LISTED IN THE COMPENDIUM BECAUSE IT HAD NOT BEEN POSSIBLE TO CONFIRM THE AUTHORS’ PERMISSION TO HAVE THEIR SUBMISSIONS INCLUDED.

SOME OF THESE AUTHORS HAD SINCE GIVEN THEIR AUTHORISATION. THE UNEDITED TEXTS OF THESE AND OTHER SUBMISSIONS ARE INCLUDED IN THE SUPPLEMENT.

AS IN THE CASE OF THE COMPENDIUM, PUBLIC DISCUSSIONS WHICH ARE A MATTER OF PUBLIC RECORD AND ARE AVAILABLE FOR PUBLIC INSPECTION ARE NOT INCLUDED.

THERE ARE ALSO SUBMISSIONS FOR WHICH IT HAS NOT BEEN POSSIBLE TO CONFIRM THE AUTHORS’ PERMISSION FOR THEIR SUBMISSIONS TO BE INCLUDED.

ALSO EXCLUDED ARE THOSE COMMENTS AND VIEWS WHICH HAVE BEEN PUBLISHED IN NEWSPAPERS AND PERIOD[CALS, UNLESS THEY HAVE BEEN SEPARATELY SUBMITTED TO THE GOVERNMENT.

IT IS EXPECTED THAT THERE WILL BE FURTHER VIEWS AFTER THE PUBLICATION OF THE SUPPLEMENT. WITH THE PERMISSION OF THE AUTHORS, THESE SUBMISSIONS WILL BE PRESENTED TO MEMBERS OF THE LEGISLATIVE COUNCIL WHEN THEY ARE RECEIVED.

0 --------

/Il ........

FRIDAY, MARCH 5, 1993

- 11

MORE RESOURCES FOR TRANSPORT INFRASTRUCTURE ♦ * * ♦ ♦

THE GOVERNMENT WILL SPEND $7 BILLION ON TRANSPORT INFRASTRUCTURE IN 1993/94 ON TOP OF ITS COMMITMENT TO THE CONSTRUCTION OF ROUTE 3 - COUNTRY PARK SECTION AND ADDITIONAL CLIMBING LANES ON TUEN MUN HIGHWAY.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, AT A PRESS CONFERENCE TODAY (FRIDAY) WHICH WAS ALSO ATTENDED BY THE COMMISSIONER FOR TRANSPORT, MR RAFAEL HUI AND THE DIRECTOR OF HIGHWAYS, MR S K KWET.

MR LEUNG SAID THE $7 BILLTON FIGURE, WHICH INCLUDES EXPENDITURE ON HIGHWAY PROJECTS RELATED TO THE NEW AIRPORT AND DEVELOPMENT IN THE WESTERN PART OF THE TERRITORY, REPRESENTS AN 85 PER CENT INCREASE COMPARED WITH THE $3.8 BILLION FOR 1992/93.

ON ROUTE 3 - COUNTRY PARK SECTION, MR LEUNG SAID GOVERNMENT’S PLEDGE TO CONTRIBUTE $4 BILLTON (AT 1994 PRICES) WOULD MAKE THE PROJECT MORE ATTRACTIVE TO THE PRIVATE SECTOR.

EXPRESSIONS OF INTEREST ARE BEING INVITED TODAY FROM THE PRIVATE SECTOR TO PARTICIPATE IN THE PROJECT ON A BUILD-OPERATE-TRANSFER BASIS.

THE 13-KM ROAD WITH A DUAL THREE-LANE CARRIAGEWAY WILL RUN IN A NORTH-SOUTH DIRECTION FROM AU TAU NEAR YUEN LONG TO TSING YI.

THE PROJECT IS ESTIMATED TO COST ABOUT $11 BILLION AT 1994 PRICES, EXCLUDING LAND RESUMPTION COST AND OVERHEADS.

' I 7 !

MR LEUNG SAID THE EXPRESSWAY JWjLL PROVIDE AN ESSENTIAL LINK BETWEEN THE NORTHWEST NEW TERRITORIES AND THE URBAN AREAS AND WILL RELIEVE CONGESTION IN THE TUEN MUN AND CASTLE PEAK ROADS.

”IT WILL MEET TRANSPORT NEEDS ARISING FROM THE GROWTH TN CROSS-BORDER TRAFFIC AND NEW DEVEIJ)PMENTS IN THE NORTHWEST NEW TERRITORIES,” HE SAID. 1 /

THE EXPRESSWAY CONSISTS OF THE FOLLOWING THREE SECTIONS:

(I) TING KAU BRIDGE - A 700-METRE CABLE-STAYED BRIDGE WITH A 420-METRE MAIN SPAN ACROSS THE RAMBLER CHANNEL AND ABOUT 1,100 METRES OF VIADUCTS.

(2) TAI LAM TUNNEL - A 3.4-KM TUNNEL WITH THE SOUTHERN PORTAL LINKED WITH THE TING KAU INTERCHANGE \ND THE NORTHERN PORTAL TO THE WEST OF HO PUI.

(3) YUEN LONG APPROACH - AN 8-KM EXPRESSWAY AT GRADE CONNECTING THE NORTHERN PORTAL OF THE TAI LAM TUNNEL WITH THE NEW TERRITORIES CIRCULAR ROAD AT AU TAU.

A TOLL PLAZA AND ADMINISTRATION BUILDING WILL BE PROVIDED AS PART OF THE PROJECT.

/MR LEUNG .......

FRIDAY, MARCH 5, 1993

- 12

MR LEUNG SAID: ’’THE GOVERNMENT WILL CONSIDER CAREFULLY ALL SUBMISSIONS MADE BY APRIL 30, 1993 BEFORE DECIDING ON HOW TO TAKE THE PROJECT FORWARD.”

"IT IS OUR INTENTION TO COMPLETE THE EXPRESSWAY AS SOON AS POSSIBLE. OUR PRESENT TARGET IS 1998/99," HE SAID.

ON THE $1 BILLION TUEN MUN HIGHWAY IMPROVEMENT SCHEME, MR LEUNG SAID AN ADDITIONAL LANE AND A HARD SHOULDER WILL BE CONSTRUCTED AT FOUR UPHILL SECTIONS OF THE TSUEN WAN-BOUND CARRIAGEWAY.

HE SAID: "THE ADDITIONAL CLIMBING LANE WILL ACCOMMODATE SLOW-MOVING VEHICLES WHICH NOW CAUSE CONGESTION DURING THE MORNING PEAK HOURS.”

’’THE UNDER HARD SHOULDER WILL PROVIDE POLICE AND EMERGENCY VEHICLES WITH BETTER ACCESS TO DEAL WITH ACCIDENTS OR BREAKDOWNS WHICH HOLD UP TRAFFIC,” HE SAID.

IT IS EXPECTED THAT CONSTRUCTION ON THE FIRST THREE SECTIONS NEAR TUEN MUN, AND AT TAI LAM AND TING KAU WILL BEGIN IN EARLY 1994 WITH STAGED COMPLETION STARTING IN 1996.

MR LEUNG EMPHASISED THAT "THE TRANSPORT DEPARTMENT AND HIGHWAYS DEPARTMENT WILL WORK CLOSELY TO ENSURE THAT TRAFFIC DISRUPTION ALONG TUEN MUN HIGHWAY WILL BE MINIMISED DURING THE CONSTRUCTION PERIOD."

HE SAID TN ADDITION, WORKS WOULD START ON SEVEN MAJOR TRANSPORT INFRASTRUCTURE PROJECTS SERVING TERRITORIAL NEEDS IN 1993/94. THESE ARE:

(1) THE YAUMATEI SECTION OF THE WEST KOWLOON CORRIDOR,

(2) EXTENSION OF THE WATERFRONT ELEVATED ROAD ON THE WEST SIDE OF HK ISLAND TO KENNEDY TOWN,

(3) SMITHFIELD EXTENSION AND RELATED TRAFFIC IMPROVEMENTS IN THE WESTERN DISTRICT,

(4) A NETWORK OF FOOTBRIDGES AND SUBWAYS ACROSS FERRY STREET IN YAUMATEI,

(5) RECONSTRUCTION OF A SECTION OF LION ROCK TUNNEL ROAD,

(6) RECONSTRUCTION OF A SECTION OF CASTLE PEAK ROAD BETWEEN FU TEI TN TUEN MUN AND SAN TSUEN IN PING SHAN AND,

(7) REHABILITATION OF CHAI WAN ROAD BETWEEN SHAU KEI WAN ROAD AND WING TAI ROAD.

IN ADDITION, FOUR MAJOR PROJECTS ARE DUE FOR COMPLETION WITHIN THIS YEAR. THEY ARE THE HILLSIDE ESCALATOR LINKING THE MID-LEVELS AND CENTRAL, THE YUEN LONG-TURN MUN EASTERN CORRIDOR, STAGE 2 OF LAM KAM ROAD IMPROVEMENT AND IMPROVEMENT TO ROAD ACCESS TO PO LIN MONASTERY ON LANTAU ISLAND.

0---------

/13 ........

FRIDAY, MARCH 5, 1993

- 13 -

POSSIBLE IMPACT ON HK IF CHINA LOST MFN STATUS ♦ t * ♦ *

THE GOVERNMENT ESTIMATES THAT, IF CHINA’S MOST FAVOURED NATION (MFN) TRADING STATUS WERE WITHDRAWN, HONG KONG MIGHT LOSE HK$118 BILLION TO HK$I66 BILLTON IN OVERALL TRADE; HK$16 BILLION TO HK$23 BILLION TN INCOME AND AROUND 49,000 TO 69,000 IN JOBS.

THE TRADE DEPARTMENT TODAY (FRIDAY) RELEASED THE GOVERNMENT’S LATEST ASSESSMENT ON THE IMPACT ON HONG KONG’S ECONOMY IF CHINA WERE TO LOSE ITS MFN TRADING STATUS TN THE U.S.

AT A PRESS CONFERENCE, THE ACTING DIRECTOR-GENERAL OF TRADE, MR CHRISTOPHER JACKSON, SAID LOCAL TRADE ASSOCIATIONS WERE TOLD THAT REMOVAL OF CHINA’S MFN TRADING STATUS BY U.S. WOULD HAVE A DIRECT ADVERSE IMPACT ON HONG KONG’S RE-EXPORTS OF CHINA ORIGIN TO THE U.S.

”A REDUCTION OF UP TO HK$66 BILLION WORTH OF RE-EXPORTS IS DOUBLE THE IMPACT THAT WE ESTIMATED IN 1990," MR JACKSON SAID.

"THIS IS LARGELY THE RESULT OF THE VERY RAPID GROWTH IN HONG KONG’S RE-EXPORTS OF CHINA-MADE GOODS TO THE U.S. OVER THE PAST FEW YEARS."

ON THE LONG-TERM EFFECTS, MR JACKSON EXPLAINED THAT THEY WERE MUCH MORE DIFFICULT TO QUANTIFY AND WOULD DEPEND IN PART ON ANY RETALIATION TAKEN BY CHINA.

"HONG KONG’S ROLE AS A GATEWAY TO CHINA AND BUSINESS CONFIDENCE IN THE TERRITORY WOULD BE SERIOUSLY AFFECTED BY WITHDRAWAL OF MFN STATUS," HE ADDED.

PRESIDENT CLINTON IS REQUIRED BY LAW TO INDICATE BY JUNE 3 WHETHER HE INTENDS TO RENEW CHINA’S MFN STATUS FOR ANOTHER YEAR.

"WE HAVE STEPPED UP OUR ACTIVITIES IN WASHINGTON," MR JACKSON SAID.

"WE HAVE REINFORCED OUR LOBBYING TEAM AND ARE WORKING WITH U.S. BUSINESS ALLIES TO IMPRESS UPON MEMBERS OF THE NEW ADMINISTRATION AND CONGRESS THE DAMAGE WHICH MFN WITHDRAWAL WOULD DO TO HONG KONG AND TO U.S. INTERESTS IN THIS REGION."

-----0------

/14 ........

FRIDAY, MARCH 5, 1993

- 14 -

GOVERNMENT TO REVIEW PUBLIC WORKS PROCEDURES ♦ * ♦ ♦ ♦

TO INCREASE SUBSTANTIALLY ITS CAPACITY TO DELIVER PUBLIC WORKS PROJECTS ON TIME, THE GOVERNMENT PLANS TO UNDERTAKE A THOROUGH OVERHAUL OF PUBLIC WORKS PROCEDURES, PRACTICES AND SYSTEM, THE SECRETARY FOR THE TREASURY, MR K Y YEUNG, SAID.

SPEAKING AT THE INAUGURATION CEREMONY OF THE HONG KONG CONSTRUCTION ASSOCIATION THIS (FRIDAY) EVENING, MR YEUNG SAID THE SECRETARY FOR WORKS WOULD BE RESPONSIBLE FOR THE REVIEW.

"IT IS NOT MERELY A QUESTION OF REVIEWING THE WORKS SIDE OF LIFE : I INTEND TO SUBJECT THE FINANCIAL AND RELATED POLICY ASPECTS OF THE PUBLIC WORKS PROGRAMME TO SIMILAR CRITICAL ANALYSIS,” HE SAID.

THE REVIEW WOULD NOT FIRST BE AN IN-HOUSE AFFAIR, MR YEUNG SAID, ADDING THAT BOTH THE SECRETARY FOR WORKS AND HE HIMSELF INTEND TO DRAW UPON THE GREAT DEPTH OF EXPERTISE THAT IS AVAILABLE IN THE PRIVATE SECTOR.

’’ALTHOUGH GOVERNMENT IS NOT DRIVEN BY THE NEED TO MAKE A PROFIT, NONETHELESS WE MAY NEED TO ADOPT SOME OF THE FINANCIAL AND OTHER DISCIPLINES THAT ARE EMPLOYED BY THE PRIVATE SECTOR TO ENSURE THE LEVELS OF EFFICIENCY AND SERVICE THAT THE TAXPAYER IS ENTITLED TO EXPECT,” HE SAID.

"IN CONDUCTING THE REVIEW, I AM PREPARED TO RELAX THE PRESENT FINANCIAL RESTRAINTS IMPOSED ON STAFF GROWTH IN THE WORKS DEPARTMENTS, PROVIDED THAT AN ADEQUATE CASE CAN BE MADE.

"THE FURTHER USE OF CONSULTANTS TO AUGMENT STAFF RESOURCES IN CRITICAL AREAS WILL ALSO BE CONSIDERED,” MR YEUNG SAID.

"WHERE POSSIBLE, WE HOPE TO MAKE GREATER USE OF DESIGN AND BUILD, AND TURN-KEY PROJECTS. PROJECTS ANNOUNCED IN THIS YEAR’S BUDGET SPEECH SUCH AS THE IMPROVEMENTS TO THE TUEN MUN HIGHWAY AND THE NEW NORTH DISTR ICT HOSPITAL MAY BE SUITABLE CANDIDATES FOR SUCH TREATMENT," HE SAID.

"THE USE OF THESE FORMS OF CONTRACT SHOULD NOT ONLY SPEED UP STARTS ON PROJECTS, IT SHOULD ALSO RESULT IN MORE COMPETITIVE BIDS. FOR EXAMPLE, IT SHOULD BE POSSIBLE TO ALLOW MORE FREEDOM TO CONTRACTORS TO SUGGEST ALTERNATIVE DESIGNS OR CONSTRUCTION METHODS THAN IS CURRENTLY POSSIBLE WITH PROJECTS WHERE THE DESIGN HAS ALREADY BEEN UNDERTAKEN BY THE GOVERNMENT.

"WITH THIS IN MIND THE GOVERNMENT HAS TODAY FORMALLY INVITED EXPRESSIONS OF INTEREST FROM THE PRIVATE SECTOR TO DESIGN, BUILD AND OPERATE THE COUNTRY PARK SECTION OF ROUTE 3," HE SAID.

ROUTE 3 WILL BE A MAJOR HIGHWAY STRETCHING NORTHWARDS FROM TSING YI ISLAND TO YUEN LONG AND THE BORDER WITH CHINA. INCLUDED IN THE PROJECT IS THE CONSTRUCTION OF A MAJOR BRIDGE FROM TSING YI TO TING KAU AND A TUNNEL UNDER THE TAI LAM COUNTRY PARK.

/THE ESTIMATED .......

FRIDAY, MARCH 5, 1993

- 15 -

THE ESTIMATED TOTAL COST OE THE PROJECT IS ABOUT $9 BILLION, TOWARDS WHICH THE FINANCIAL SECRETARY TN HIS BUDGET ON WEDNESDAY EARMARKED A SUM OF $4 BILLION (IN 1994 PRICES) AS THE GOVERNMENT’S POTENTIAL CONTRIBUTION TO THE PROJECT, EITHER AS WORKS OR AS EQUITY.

MR YEUNG NOTED THAT HONG KONG’S ECONOMY WAS EXPECTED TO GROW BY AT LEAST FIVE PER ('ENT IN REAL TERMS OVER THE NEXT FEW YEARS, SO THE FINANCES SHOULD BE THERE TO START YET MORE NEW PUBLIC WORKS PROJECTS.

’’THE GOVERNMENT’S AIM IS TO HAVE IN PLACE THE RESOURCES NOT ONLY TO CATCH UP ON THE PRESENT BACKLOG OF WORKS BUT ALSO TO TAKE ON THESE NEW DEMANDS.

’’THE GOVERNMENT IS NOT ABOUT TO HIDE ITS FAILURE TO DELIVER WHAT HAS BEEN PROMISED IN THE PUBLIC WORKS PROGRAMME. THE COMMITMENT HAS BEEN MADE AT THE HIGHEST LEVELS TO A RADICAL RE-THINK OF THE WHOLE OF THE GOVERNMENT’S PRACTICES AND PROCEDURES.

"WE NOW KNOW WHERE THE PROBLEM LIES AND WHAT THE POSSIBLE SOLUTIONS ARE. THE MAIN AREAS THAT NEED TO BE TACKLED ARE CLEARER LINES OF ACCOUNTABILITY, THE NEED FOR A BETTER MANAGEMENT INFORMATION SYSTEM, THE NEED TO AUGMENT THE CAPACITY OF THE WORKS GROUP OF DEPARTMENTS, AND A REVIEW OF HOW THINGS HAVE BEEN DONE IN THE PAST TO SEE WHETHER THEY CAN BE DONE IN A BETTER WAY."

OVER THE NEXT FEW MONTHS, THE EFFECTS OF THE REVIEW SHOULD BEGIN TO BE FELT RY THE CONSTRUCTION INDUSTRY, MR YEUNG ASSURED THE AUDIENCE.

ON OTHER MEANS TO ENSURE THAT PUBLIC WORKS PROJECTS ARE STARTED AND COMPLETED ON TIME AND WITHIN BUDGET, MR YEUNG SAID AN OBVIOUS STEP TO TAKE WAS TO MAKE SOMEONE RESPONSIBLE WITHIN THE GOVERNMENT FOR IMPLEMENTING THE PUBLIC WORKS PROGRAMME.

"1 HAVE THIS WEEK ISSUED A FINANCIAL CIRCULAR SETTING OUT THE MAIN COURSE OF ACTION TO BE FOLLOWED. POLICY SECRETARIES WILL, AS NOW, CONTINUE TO BE RESPONSIBLE UNDER THE RESOURCE ALLOCATION SYSTEM FOR SEEKING FUNDS FOR THEIR PROGRAMMES.

"IT HAS BEEN AGREED, HOWEVER, THAT THE SECRETARY FOR WORKS SHOULD HAVE A NEW AND EXPANDED ROLE. HIS MAIN TASK WILL BE TO ENSURE THAT, ONCE THE RESOURCE ALLOCATION EXERCISE IS COMPLETED, THE PUBLIC WORKS PROGRAMME IS IMPLEMENTED EFFECTIVELY AND EFFICIENTLY HAVING REGARD TO THE RESOURCES AVAILABLE TO HIM.

"THE SECRETARY FOR WORKS, HOWEVER, IS HIM IN THE COMPLEX TASK OF CO-ORDINATING THE NEW PUBLIC WORKS PROGRESS COMMITTEE HAS BEEN

ONLY ONE MAN. TO ASSIST PUBLIC WORKS PROGRAMME, A ESTABLISHED.

"THE SECRETARY FOR WORKS CHAIRS THIS COMMITTEE. ALL OF THE POLICY BRANCHES WITH DIRECT INVOLVEMENT IN THE PUBLIC WORKS PROGRAMME WILL BE REPRESENTED. IN ADDITION, THE DIRECTORS OF THE VARIOUS WORKS DEPARTMENTS WILL APPEAR BEFORE THE COMMITTEE WHEN ITEMS OF DIRECT RELEVANCE TO THEM ARE TO BE DISCUSSED.

/’’THE PUBLIC ...........

FRIDAY, MARCH 5, 1993

16

’’THE PUBLIC WORKS PROGRESS COMMITTEE WILL PROVIDE THE MAIN FORUM FOR ENSURING THAT THE GOVERNMENT ACTS COLLECTIVELY IN A CO-ORDINATED FASHION. THE HIGH LEVEL OF REPRESENTATION OF ITS MEMBERS SHOULD ENABLE PROBLEMS TO BE RESOLVED THERE AND THEN WITHOUT FURTHER DELAY,” MR YEUNG SAID.

HE NOTED THAT BETTER MANAGEMENT INFORMATION WOULD ALSO HELP.

’’DECISIONS CAN ONLY BE TAKEN BY THIS NEW COMMITTEE AND OTHERS IF UP-TO-DATE INFORMATION ON PROJECT PROGRESS AND COSTS IS READILY TO HAND. IN THE PAST IT HAS BEEN USUAL FOR THERE TO BE A ONE TO TWO MONTH DELAY IN OBTAINING SPENDING AND PROGRESS INFORMATION ON PROJECTS.

’’THIS MAKES IT IMPOSSIBLE TO TAKE QUICK REMEDIAL ACTION TO GET THINGS BACK ON TRACK BEFORE ANY SERIOUS DAMAGE IS DONE,” HE SAID.

’’PLANS ARE NOW IN HAND TO PROVIDE A SOPHISTICATED, COMPUTER-BASED INFORMATION AND MANAGEMENT SYSTEM TO LINK ALL THE WORKS DEPARTMENTS AND RELEVANT POLICY BRANCHES.

”A SIMILAR SYSTEM ALREADY IS IN PLACE TO DEAL WITH THE NEW AIRPORT PROJECTS. THIS, HOWEVER, ONLY HAS TO CATER FOR THE 10 MAJOR AIRPORT CORE PROGRAMME PROJECTS AND IS ACCESSIBLE ONLY TO THOSE DIRECTLY INVOLVED IN THE NEW AIRPORT.”

THE NEW SYSTEM WILL PROVIDE THE BASIC TECHNOLOGY NECESSARY TO SUPPORT THE TIMELY PROVISION OF INFORMATION TO TRACK PROGRESS AND COSTS ON THE OVER 2,000 ITEMS THAT MAKE UP THE REMAINING BULK OF THE PUBLIC WORKS PROGRAMME.

’’THOSE HAVING ACCESS TO THE NEW SYSTEM WILL ALSO BE FAR WIDER THAN NOW. WHETHER SOME OF THE DATA MIGHT EVEN BE MADE ACCESSIBLE TO THOSE OUTSIDE OF GOVERNMENT CAN ALSO BE CONSIDERED.

’’DURING OUR PLANNING FOR THE NEW SYSTEM, WE SHALL BE SEEKING YOUR ADVICE ON HOW GOVERNMENT AND THE CONSTRUCTION INDUSTRY CAN COOPERATE TO SERVE THE PUBLIC BETTER.

’’THE CLAIM HAS ALSO BEEN MADE THAT MANY PROJECTS HAVE BEEN DELAYED BECAUSE OF THE NEED TO OBTAIN STATUTORY AND OTHER ADM INISTRATIVE APPROVALS.

’’WHILE CLEARLY THERE IS A NEED TO FOLLOW FORMAL APPROVAL PROCEDURES, DELAYS CAN OCCUR IF A CAREFULLY PLANNED APPROACH IS NOT ADOPTED FROM THE OUTSET WHEN A PROJECT IS FIRST INCLUDED IN THE PUBLIC WORKS PROGRAMME,” MR YEUNG SAID.

-----0------

/17 ........

FRIDAY, MARCH 5, 1993

- 17 -

PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCES REVISED * * * * *

THE FINANCE COMMITTEE TODAY (FRIDAY) APPROVED THE INCREASE IN THE PAYMENT RATES UNDER THE PUBLIC ASSISTANCE (PA) AND SPECIAL NEEDS ALLOWANCES (SNA) SCHEMES, ESTIMATED AT $373.4 MILLION IN ANNUAL RECURRENT EXPENDITURE.

THE PA AND SNA RECIPIENTS WILL HAVE THEIR PAYMENTS INCREASED BY NINE PER CENT AS A RESULT OF THE REVISION FROM NEXT MONTH, A SOCIAL WELFARE DEPARTMENT SPOKESMAN SAID.

THE ADJUSTMENT OF THE PAYMENTS WAS IN LINE WITH THE INFLATION RATE SO AS TO MAINTAIN THE PURCHASING POWER OF THE SOCIAL SECURITY PAYMENTS, THE SPOKESMAN EXPLAINED.

DETAILS OF THE NEW RATES ARE:

CATEGORY

EXISTING SCALE

NEW SCALE

PUBLIC ASSISTANCE

SINGLE PERSON $825 $900

FAMILY : 1ST MEMBER $620 $675

2ND MEMBER $620 $675

3RD MEMBER $610 $665

4TH MEMBER $610 $665

5TH AND EACH ADDITIONAL MEMBER $600 $655

OLD AGE SUPPLEMENT

(A) FOR A PA RECIPIENT WHO IS AGED BETWEEN 60 AND 69 AND IS NOT IN RECEIPT OF A SPECIAL NEEDS ALLOWANCE $4 13 $450

(B) FOR A PA RECIPIENT WHO IS AGED 70 OR ABOVE AND IS NOT IN RECEIPT OF A SPECIAL NEEDS ALLOWANCE $470 $510

DISABILITY SUPPLEMENT (FOR A PA RECIPIENT WHO IS PARTIALLY DISABLED AND IS NOT IN RECEIPT OF AN OLD AGE SUPPLEMENT OR A SPECIAL NEEDS ALLOWANCE) $4 1 3 $4 50

CHILD SUPPLEMENT

$205

$225

/LONG TERM ........

FRIDAY, MARCH 5, 1993

- 18 -

LONG TERM ANNUAL SUPPLEMENT (FOR THOSE HOUSEHOLDS IN RECEIPT OF PA FOR 12 MONTHS OR MORE)

(A) FOR A SINGLE PERSON $1,050 $1,145

(B) FOR A FAMILY COMPRISING TWO TO FOUR MEMBERS $2,100 $2,290

(C) FOR A FAMILY COMPRISING FIVE OR MORE MEMBERS $3, 150 $3,435

MEAL ALLOWANCE (FOR STUDENTS ATTENDING FULL-DAY SCHOOLS AND REQUIRED TO TAKE LUNCH AWAY FROM HOME) SPECIAL NEEDS ALLOWANCES (A) OLD AGE ALLOWANCE $142 $154

(I) NORMAL RATE (FOR THOSE AGED BETWEEN 65 AND 69) $413 $450

(II) HIGHER RATE (FOR THOSE AGED 70 AND OVER) (B) DISABILITY ALLOWANCE $470 $510

(1) NORMAL RATE $825 $900

(II) HIGHER RATE (FOR THOSE IN NEED OF CONSTANT ATTENDANCE) $1 ,650 $1,800

THE FINANCE COMMITTEE ALSO ENDORSED A PACKAGE OE IMPROVEMENTS TO THE PA AND SNA SCHEMES WITH EFFECT FROM JULY 1 THIS YEAR, ESTIMATED AT $136.7 MILLION IN 1993/94 AND $182.2 MILLION FOR A FULL YEAR IN ANNUAL RECURRENT EXPENDITURE.

BY THAT TIME, A NEW SCHEME, COMPREHENSIVE SOCIAL SECURITY ASSISTANCE (CSSA) SCHEME, WILL REPLACE THE PA SCHEME.

THE SNA SCHEME WILL BE RETITLED THE SOCIAL SECURITY ALLOWANCE (SSA) SCHEME.

’’THE NEW SCHEME ENSURES THAT THOSE IN NEED WILL RECEIVE MORE ASSISTANCE UNDER THE CSSA SCHEME, AS ANNOUNCED BY THE GOVERNOR IN HIS POLICY SPEECH ON OCTOBER 7 LAST YEAR," THE SPOKESMAN SAID.

THE LEVEL OF BENEFITS UNDER THE SSA SCHEME WOULD BE THE SAME AS UNDER THE SNA SCHEME, HE EXPLAINED.

/CSSA BENEFICIARIES .......

FRIDAY, MARCH 5, 1993

- 19 -

CSSA BENEFICIARIES WOULD NOT BE ELIGIBLE FOR SSA BECAUSE THE ALLOWANCES PAYABLE TO THEM WOULD HAVE BEEN SUBSUMED INTO THE STANDARD RATE UNDER THE CSSA SCHEME, HE ADDED.

DETAILS OF THE STANDARD RATE UNDER CSSA ARE:

CATEGORY STANDARD RATE

SINGLE PERSON

FAMILY MEMBER

ELDERLY PERSON AGED 60 OR ABOVE $1,550 $1,285

DISABLED ADULT

50% DISABLED $1 ,550 $1,285

100% DISABLED $1,935 $1,675

REQUIRING CONSTANT ATTENTION $2,835 $2,570

DISABLED CHILD

50% DISABLED $1,770 $1 ,510

100% DISABLED $2,160 $1,895

REQUIRING CONSTANT ATTENTION $3,055 $2,795

ABLE-BODIED CHILD $1,260 $995

ABLE-BODIED ADULT $1,035 $895

"THE DEPARTMENT IS MAKING CONSIDERABLE ADMINISTRATIVE PREPARATIONS TO MAKE THE NECESSARY CHANGES TN THE TWO NEW SCHEMES. MORE DETAILS ABOUT THE NEW SOCIAL SECURITY PACKAGE WILL BE ANNOUNCED NEARER THE TIME OF IMPLEMENTATION,” THE SPOKESMAN SAID.

ARRANGEMENTS FOR DUE ADJUSTMENTS TO THE LEVEL OF BENEFITS WOULD BE MADE FOR EXISTING RECIPIENTS TO ENSURE THAT THEY WOULD RECEIVE THE NEW RATES TN GOOD TIME, HE ADDED.

--------0-----------

/20........

FRIDAY, MARCH 5, 1993

20 -

WHITE PAPER ON HONG KONG ANNUAL REPORT 1992 TO PARLIAMENT *****

THE ANNUAL REPORT ON HONG KONG 1992 TO PARLIAMENT (ANNUAL REPORT) HAS BEEN PRESENTED TO PARLIAMENT BY HER MAJESTY’S GOVERNMENT TODAY (FRIDAY).

AS IN PAST YEARS, THE ANNUAL REPORT HAS BEEN PUBLISHED IN THE FORM OF A WHITE PAPER BOTH IN LONDON AND HONG KONG. THE WHITE PAPER WILL BE TABLED AT THE LEGISLATIVE COUNCIL NEXT WEDNESDAY (MARCH 10).

A GOVERNMENT SPOKESMAN SAID HER MAJESTY’S GOVERNMENT HAD AGREED IN 1985, DURING THE PARLIAMENTARY DEBATES ON THE HONG KONG BILL, TO PRODUCE ANNUAL REPORTS ON HONG KONG AND TO LAY THEM BEFORE PARLIAMENT.

THE PURPOSE OF THIS SERIES OF REPORTS IS TO KEEP PARLIAMENT INFORMED OF DEVELOPMENTS IN HONG KONG ON A REGULAR BASIS.

THE ANNUAL REPORT IS THE EIGHTH SUCH REPORT. IT CONTAINS A SURVEY OF MAJOR EVENTS IN HONG KONG DURING 1992.

TOPICS COVERED INCLUDE VISITS TO HONG KONG BY MEMBERS OF THE ROYAL FAMILY AND GOVERNMENT MINISTERS, VISITS BY THE GOVERNOR OF HONG KONG, CONTACTS BETWEEN HONG KONG AND CHINA, CONSTITUTIONAL DEVELOPMENT, HUMAN RIGHTS, VIETNAMESE MIGRANTS, EMIGRATION AND NATIONALITY, THE PORT AND AIRPORT DEVELOPMENT, GENERAL ECONOMIC AND SOCIAL CONDITIONS, LAW AND ORDER AND THE ( IVIL SERVICE.

COPIES OF THE WHITE PAPER ON THE ANNUAL REPORT AND THE CHINESE TRANSLATION WILL BE AVAILABLE, FREE OF CHARGE, TO MEMBERS OF THE PUBLIC FROM TOMORROW (SATURDAY).

THEY CAN BE OBTAINED FROM ALL DISTRICT OFFICES, THE GOVERNMENT PUBLICATIONS CENTRE (GROUND FLOOR, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL), AND THE GOVERNMENT PUBLICATIONS SALES SECTION OF THE INFORMATION SERVICES DEPARTMENT AT FRENCH MISSION BUILDING, 1 BATTERY PATH, CENTRAL.

--------0-----------

/21 ........

FRIDAY, MARCH 5, 1993

- 21 -

MOTHER TERESA CALLS ON HK PEOPLE TO LOVE AND SERVE

*****

"LOVE, SERVICE AND TOGETHERNESS" IS THE MESSAGE OF GOODWILL FROM THE VISITING NOBEL PEACE PRIZE WINNER, MOTHER TERESA, FOR ALL HONG KONG PEOPLE.

THE MESSAGE WAS DELIVERED TO THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, AND THE DIRECTOR OF SOCIAL WELFARE, MR IAN STRACHAN, WHEN THEY PAID A COURTESY CALL ON HER IN A HOME FOR STREET SLEEPERS RUN BY THE MISSIONARIES OF CHARITY IN NAM CHEONG ESTATE, SHAM SHU I PO, THIS (FRIDAY) MORNING.

MRS WONG THANKED MOTHER. TERESA FOR PAYING A VISIT TO HONG KONG AND CONGRATULATED HER ON HER BEING AWARDED AN HONORARY DEGREE BY THE UNIVERSITY OF HONG KONG FOR HER CONTRIBUTION TO THE POOR.

WHEN ASKED HOW TO REMOVE PREJUDICE FROM THE MINDS OF THE PEOPLE AGAINST THOSE WITH AIDS AND THOSE WHO ARE HANDICAPPED, MOTHER TERESA BELIEVED THAT MORE INTEGRATION WAS NECESSARY.

"LET PEOPLE SEE HOW YOU ARF. SERVING THEM," SHE SAID. "YOU CANNOT WRITE ABOUT THIS THING AND YOU CANNOT TALK ABOUT IT."

"BY BRINGING PEOPLE TOGETHER, THEY WILL HAVE NO FEARS.

"GET MORE VOLUNTEERS TO COME AND SERVE," SHE ADDED.

ON YOUTH SUICIDES, MOTHER. TERESA SAID YOUNG PEOPLE NEEDED MOTIVATION. "THEY HOPE TO LOVE AND TO BE LOVED. GIVE THEM MORE OPPORTUNITIES TO DO SOMETHING."

MRS WONG AND MR STRACHAN WERE ACCOMPANIED ON THE VISIT BY THE DEPUTY SECRETARY FOR HEALTH AND WELFARE, MRS SHELLEY LAU, AND THE DEPUTY DIRECTOR OF SOCIAL WELFARE, MRS LOUISE WONG.

-----0------

CROSS BORDER SECURITY CO-OPERATION

*****

THE GUANGDONG PUBLK SECURITY BUREAU (I’SB) AUTHORITIES HAVE PLEDGED TO CONTINUE TO CO-OPERATE FULLY WITH THE ROYAL HONG KONG POLICE ON ALL CROSS-BORDER SECURITY AND CRIME MATTERS.

THE ASSURANCE WAS GIVEN TO THE COMMISSIONER OF POLICE , MR. LI KWAN-HA, AND HIS DELEGATION DURING THEIR FIVE-DAY VISIT TO GUANGDONG AS PART OF THE COMMISSIONER'S ANNUAL LIAISON VISIT TO CHINA. THE COMMISSIONER IS MOST APPRECIATIVE OF SUCH AN UNDERTAKING.

MR LI AND HIS DELEGATION WHICH INCLUDED THE DEPUTY DIRECTOR OF CRIME, MR TSANG YAM-PUI; CHIEF STAFF OFFICER, ORGANISED CRIME AND TRIAD GROUP (OCTG) MR CHAN TIT-KIN; STAFF OFFICER, INTERPOL, MR FOK MAN-KWAN; AND THE PERSONAL ASSISTANT TO THE COMMISSIONER, MR CI1EUK CHUN-YIN, RETURNED TODAY (FRIDAY).

/DURING THE .......

FRIDAY, MARCH 5, 1993

- 22 -

DURING THE VISIT, THE DELEGATION HELD TALKS WITH THE GUANGDONG PSB AUTHORITIES ON A NUMBER OF CROSS-BORDER SECURITY AND CRIME ISSUES INCLUDING THE SMUGGLING OF STOLEN LUXURY VEHICLES.

THE COMMISSIONER IS VERY PLEASED THAT THROUGH EFFORTS ON THE PART OF THE GUANGDONG PSB, EIGHT STOLEN LUXURY CARS FROM HONG KONG HAVE BEEN LOCATED IN GUANGDONG AND RETURNED TO HONG KONG TODAY.

IN CONNECTION WITH THEFT OF LUXURY VEHICLES IN HONG KONG, IT IS PLEASING TO NOTE THAT THE HIGH INCIDENCE OF THIS CRIME EXPERIENCED BETWEEN THE LAST QUARTER OF 1992 AND .JANUARY THIS YEAR HAS SHOWN A MARKED DECLINE IN FEBRUARY.

A TOTAL OF 121 LUXURY

(FOUR A DAY) COMPARED WITH 302

CARS WERE FOUND MISSING TN IN JANUARY (10 A DAY).

FEBRUARY

THE DRASTIC DECREASE IS BELIEVED TO BE ATTRIBUTED TO THE ARREST AND PROSECUTION ACTION TAKEN BY BOTH THE POLICE AND OTHER LAW ENFORCEMENT AGENCIES DURING FEBRUARY, DURING WHICH A TOTAL OF 25 PERSONS WERE ARRESTED IN CONNECTION WITH CAR THEFT RELATED OFFENCES.

OF THE 121 VEHICLES REPORTED MISSING IN

51 HAVE BEEN RECOVERED SO FAR.

THE MONTH,

AT LEAST

’’THE

POLICE WILL CONTINUE WITH ITS HIGH LEVEL OF

ENFORCEMENT

ACTION,” MR LI SAID.

-----0------

PROVISIONAL FIGURES

ON RETAIL SALES FOR DECEMBER

******

THE VALUE OF TOTAL RETAIL SALES IN DECEMBER LAST YEAR, ESTIMATED AT $15.7 BILLION, INCREASED BY 16% WHEN COMPARED WITH THE SAME MONTH TN 1991, ACCORDING TO THE STATISTICS RELEASED TODAY (FRIDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

THE INCREASE IN RETAIL SALES REFLECTED A CONTINUED GROWTH IN

SPENDING BY BOTH LOCAL CONSUMERS AND TOURISTS.

AFTER DISCOUNTING THE EFFECT OF PRICE CHANGES OVER THE PERIOD, TOTAL RETAIL SALES INCREASED BY 11% IN VOLUME TERMS.

FOR 1992 AS A WHOLE, THE INCREASE IN RETAIL SALES WAS 18% [N VALUE AND 12% IN VOLUME.

THE INCREASE IN DECEMBER WAS MAINLY ATTRIBUTABLE TO A HIGH LEVEL OF SPENDING ON CLOTHING AND FOOTWEAR, MOTOR VEHICLES, CONSUMER DURABLE GOODS OTHER THAN MOTOR VEHICLES AND JEWELLERY.

SALES OF CLOTHING, FOOTWEAR AND ALLIED PRODUCTS REGISTERED A SIGNIFICANT YEAR-ON-YEAR INCREASE IN DECEMBER, BY 29% IN VALUE AND 18% IN VOLUME.

/SALES OF ........

FRIDAY, MARCH 5, 1993

23 -

SALES OF CONSUMER DURABLE GOODS OTHER THAN MOTOR VEHICLES WENT UP MARKEDLY BY 22% IN VALUE AND 21% IN VOLUME, WHILE THOSE OF MOTOR VEHICLES BY 17% AND 11% RESPECTIVELY.

SALES OF JEWELLERY, WATCHES, CLOCKS AND VALUABLE GIFTS ALSO ROSE CONSIDERABLY, BY 19% IN VALUE AND 24% IN VOLUME. THE LARGER INCREASE IN VOLUME WAS A RESULT OF THE FALL IN THE PRICES OF JEWELLERY ITEMS.

MODERATE INCREASES WERE RECORDED FOR SALES OF FUELS, BY 16% IN VALUE AND 9% IN VOLUME, AND SALES IN SUPERMARKETS, BY 9% IN VALUE AND 2% IN VOLUME.

ON THE OTHER HAND, SALES IN DEPARTMENT STORES SHOWED NO GROWTH IN VOLUME, DESPITE AN INCREASE IN VALUE BY 8%. SALES IN OTHER FOODSTUFF OUTLETS THOUGH INCREASED BY 2% IN VALUE, RECORDED A DECREASE OF 2% IN VOLUME.

COMPARING 1992 WITH THE PRECEDING YEAR, TOTAL RETAIL SALES ROSE BY 18% IN VALUE AND 12% IN VOLUME. THE CORRESPONDING INCREASES IN 1991 WERE 17% AND 10% RESPECTIVELY, INDICATING A CONTINUED GROWTH IN CONSUMER SPENDING DURING 1992.

SALES OF MOTOR VEHICLES ROSE SHARPLY IN 1992 BY 50% IN VALUE AND 41% IN VOLUME; AND THOSE OF CLOTHING, FOOTWEAR AND ALLIED PRODUCTS BY 26% IN VALUE AND 14% IN VOLUME.

CONSIDERABLE INCREASES WERE ALSO RECORDED FOR SALES OF JEWELLERY, WATCHES, CLOCKS, AND VALUABLE GIFTS (BY 18% TN VALUE AND 23% IN VOLUME); SALES OF CONSUMER DURABLES OTHER THAN MOTOR VEHICLES (BY 14% IN VALUE AND 12% IN VOLUME); AND SALES IN DEPARTMENT STORES (BY 14% IN VALUE AND 5% IN VOLUME).

SALES IN SUPERMARKETS INCREASED AT A LESS RAPID RATE, BY 10% IN VALUE AND 2% IN VOLUME WHEREAS SALES TN OTHER FOODSTUFF OUTLETS RECORDED A 4% INCREASE IN VALUE BUT A 3% DECREASE IN VOLUME.

COMPARING WITH NOVEMBER 1992, AND BEARING IN MIND THAT THIS COMPARISON MAY BE AFFECTED BY SEASONAL FACTORS, TOTAL RETAIL SALES IN DECEMBER 1992 INCREASED BY 18% IN BOTH VALUE AND VOLUME TERMS.

THE VOLUME OF RETAIL SALES IS DERIVED FROM THE VALUE OF RETAIL SALES AFTER ADJUSTING FOR PRICE CHANGES. THE RELEVANT COMPONENTS OF THE CONSUMER PRICE INDEX ARE USED AS DEFLATORS.

THE REPORT CONTAINING THE ANALYSIS OF THE DECEMBER 1992 RESULTS IS NOW ON SALE AT $1.5 A COPY AT THE GOVERNMENT PUBLICATIONS CENTRE, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL; AND THE PUBLICATIONS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT, I9TH FLOOR, WANCHAI TOWER, WAN CHAI.

ENQUIRIES ABOUT THE SURVEY RESULTS MAY BE DIRECTED TO THE WHOLESALE AND RETAIL TRADE STATISTICS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT ON TEL 802 1258.

/TABLE 1 : ........

FRIDAY, MARCH 5, 1993

- 24 -

TABLE 1 : TOTAL RETAIL SALES

Total Retail Sales for December 1992 (Provisional Figure) = HKS15,659.1 million

for November 1992 (Revised Figure) = HKS13,307.0 million

TABLE 2 : VALUE AND VOLUME INDEXES OF RETAIL SALES FOR NOVEMBER 1992 AND DECEMBER 1992 (Monthly average of Oct. 89 - Sept. 90 = 100)

I tern Index of Retai I Sales November 1992 December 1992 December 1992 compared with November 1992 December 1992 compared with December 1991 Jan-Dec compare* Jan-Dec 1992 J with 1991

(A) FOR ALL RETAIL OUTLETS (Revised f i gures) (Provisional figures) Points X Points X Points X

Value 141.7 166.7 ♦25.0 ♦ 17.7 +22.6 ♦ 15.7 ♦21.4 ♦17.8

(B) BY TYPE OF RETAIL OUTLET Volume 121.8 144.0 ♦22.2 ♦ 18.2 +14.3 ♦ 11.0 ♦ 13.4 ♦12.1

Foodstuffs, alcoholic Value 125.3 131.4 ♦6.1 ♦4.9 ♦2.7 ♦2.1 ♦4.3 ♦3.8

drinks and tobacco (other than supermarkets) Volume 107.3 112.0 ♦4.7 ♦4.4 -2.1 -1.8 -2.8 -2.7

Supermarkets Value 117.5 140.3 ♦22.8 ♦ 19.4 + 12.0 ♦9.3 ♦ 11.6 ♦9.9

Volume 93.8 112.4 ♦ 18.6 ♦19.8 +2.2 ♦2.0 ♦1.7 ♦ 1.7

Fuels Value 139.2 155.1 ♦ 15.8 ♦ 11.4 ♦21.2 ♦ 15.9 ♦ 14.7 ♦ 11.9

Volume 105.2 117.2 ♦ 12.1 ♦ 11.5 ♦9.9 +9.2 ♦4.7 ♦4.7

Clothing, footwear and Value 168.8 212.9 +44.1 ♦26.1 +47.6 +28.8 ♦31.8 ♦25.5

allied products Volume 131.2 167.4 ♦36.2 ♦27.6 +25.3 ♦ 17.8 ♦ 16.2 ♦ 14.2

Consumer durable goods * Value 155.9 167.8 + 12.0 ♦7.7 ♦27.8 ♦ 19.9 ♦36.6 ♦29.1

Volume 138.0 148.7 + 10.7 ♦7.8 ♦20.5 ♦ 16.0 ♦28.4 ♦24.2

- Motor vehicles Value 194; 2 192.6 -1.6 -0.8 ♦28.4 ♦ 17.3 ♦63.6 ♦49.6

and parts Volume 161.0 158.7 -2.4 •1.5 + 15.6 + 10.9 +47.3 +41.2

- Consumer durable Value 128.1 149.9 ♦21.8 + 17.0 +27.4 ♦22.4 +17.0 ♦13.7

goods other than motor vehicles and parts Volume 121.3 141.6 ♦20.2 ♦ 16.7 +24.1 ♦20.6 + 14.7 ♦12.3

Department stores Value 133.8 170.2 +36.4 ♦27.2 ♦12.3 ♦7.8 ♦ 16.2 ♦ 14.1

Volume 106.7 137.9 ♦31.2 +29.2 -0.5 -0.3 ♦5.2 ♦4.9

Jewellery, watches Value 129.5 162.3 ♦32.8 ♦25.3 +25.5 ♦ 18.6 ♦21.1 ♦ 18.1

and clocks, and valuable gifts Volume 136.2 172.0 *35.8 ♦26.3 ♦33.5 ♦24.2 +26.3 ♦22.7

Other consumer goods Value 157.4 186.5 ♦29.1 + 18.5 ♦30.8 ♦ 19.8 +24.1 ♦ 19.3

not elsewhere classified Volume 133.5 157.9 +24.4 + 18.3 + 17.8 ♦ 12.7 +12.3 ♦ 10.5

NOTE : * This covers both "Motor vehicles and parts" and "Consumer durable goods other than motor vehicles and parts".

--------0 -

/25 ........

FRIDAY, MARCH 5, 1993

25

FEES UNDER GAMBLING AND NEWSPAPERS REGISTRATION LAWS GO UP *****

REGISTRATION AND LICENCE FEES COLLECTED UNDER THE GAMBLING ORDINANCE AND THE REGISTRATION OF LOCAL NEWSPAPERS ORDINANCE HAVE BEEN REVISED WITH EFFECT FROM TODAY (FRIDAY).

A GOVERNMENT SPOKESMAN EXPLAINED THAT THESE CHARGES WERE ADJUSTED BROADLY IN ACCORDANCE WITH INFLATION AND THE REVISION WAS IN LINE WITH THE GOVERNMENT’S POLICY TO SET LEVIES AT A LEVEL THAT WOULD ENABLE THE RECOVERY OF ADMINISTRATIVE COSTS INVOLVED.

UNDER THE GAMBLING ORDINANCE, THE COMMISSIONER FOR TELEVISION AND ENTERTAINMENT LICENSING (CTEL) IS EMPOWERED TO ISSUE LICENCES FOR LOTTERIES, TOMBOLAS, GAMES OF AMUSEMENT WITH PRIZES AND TRADE AND PROMOTION COMPETITIONS AND CHARGE FOR THESE SERVICES. THESE FEES WERE LAST REVISED IN 1989.

AS REGARDS THE REGISTRATION OF LOCAL NEWSPAPERS ORDINANCE AND REGULATIONS, CTEL CHARGES A FEE FOR REGISTERING LOCAL NEWSPAPERS AND NEWS AGENCIES AS WELL AS FOR ISSUING LICENCES TO NEWSPAPER DISTRIBUTORS.

FEES ARE ALSO CHARGED FOR THE SEARCHING, INSPECTING AND FOR OBTAINING CERTIFIED EXTRACTS FROM ANY REGISTER OF LOCAL NEWSPAPERS AND NEWS AGENCIES. THE PRESENT LEVEL OF THESE FEES HAS BEEN IN EFFECT SINCE 1988.

SINCE THESE LEVIES WERE LAST REVISED TN 1989 AND 1988, A RECENT REVIEW RECOMMENDED THAT THE FEES SHOULD BE ADJUSTED, THE SPOKESMAN SAID.

HOWEVER, HE EMPHASISED THAT THE REVISED FEES SHOULD NOT DISCOURAGE ORGANISATIONS FROM APPLYING FOR LICENCES AND REGISTRATIONS AS IT WAS NOT LIKELY TO BE SIGNIFICANT IN COMPARISON WITH THE RETURNS GENERATED.

"IN ADDITION, CHARTTABLE ORGANISATIONS WILL QUALIFY FOR A WAIVER OR REDUCTION OF FEES UNDER REGULATIONS.

"IN 1992, FOR INSTANCE, OUT OF A TOTAL OF 261 FEES FOR 110 WERE WAIVED," THE SPOKESMAN POINTED OUT.

CONTINUE TO

THE GAMBLING

APPLICATIONS,

/THE NEW ........

FRIDAY, MARCH 5, 1993

- 26 -

( 1)

THE NEW FEES GAZETTED TODAY HAVE BEEN SET AS FOLLOWS:

FEES CHARGED UNDER THE GAMBLING ORDINANCE NEW FEES

DESCRIPTION OF FEES ORIGINAL FEES

* LOTTERY LICENCE $1,000 $1,600

♦ TOMBOLA LICENCE $3,200 $5,100

* AMUSEMENT WITH PRIZES LICENCE $750 $1,200

* TRADE PROMOTION COMPETITION $500 $800

LICENCE

(2)

FEES CHARGED UNDER THE REGISTRATION OF LOCAL NEWSPAPERS ORDINANCE

(A) NEWSPAPERS REGISTRATION AND REGULATION 1993 DISTRIBUTION (AMENDMENT)

♦ FOR SEARCH/INSPECTION $15 $25

* FOR EXTRACT FROM NEWSPAPERS REGISTER $65 $105

t REGISTRATION OF NEWSPAPERS $450 $710

* ANNUAL FEE $450 $710

* FEES PAYABLE ON FURNISHING OF SUBSTITUTED PARTICULARS RELATING TO NEWSPAPERS $45 $75

* NEWSPAPERS DISTRIBUTOR LICENCE $450 $710

(B) NEWS AGENCIES REGISTRATION (AMENDMENT) REGULATION 1993

♦ FOR SEARCH/INSPECTION OF NEWS AGENCY REGISTER $15 $25

* FOR EXTRACT FROM NEWS AGENCY REGISTER $65 $105

♦ REGISTRATION OF NEWS AGENCIES $4 50 $710

* ANNUAL FEE $450 $710

* FEE PAYABLE ON FURNISHING OF SUBSTITUTED PARTICULARS RELATING TO NEWS AGENCIES $45 $75

--------0-----------

/27.........

FRIDAY, MARCH 5, 1993

- 27 -

FOUR LOTS FOR PUBLIC AUCTION * * * » »

FOUR LOTS OF GOVERNMENT LAND WILL BE OFFERED FOR SALE AT A PUBLIC AUCTION ON MARCH 30, IT WAS GAZETTED TODAY (FRIDAY).

THE AUCTION WILL BE HELD IN THE CONCERT HALL OF THE HONG KONG CULTURAL CENTRE, TSIM SHA TSUI, KOWLOON, AT 2.30 PM.

THE FIRST LOT IS AT TAT CHEE ROAD, YAU YAT CHUEN, KOWLOON. IT HAS AN AREA OF 20,660 SQUARE METRES.

IT IS INTENDED FOR NON-INDUSTRIAL (EXCLUDING GODOWN, HOTEL, SERVICE APARTMENT, RESIDENTIAL AND PETROL-FILLING STATION PURPOSES, INCLUDING A PUBLIC TRANSPORT TERMINUS AND A MULTI-STOREY CAR PARK).

ACCORDING TO THE BUILDING COVENANT, THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 82,410 SQUARE METRES ON OR BEFORE MARCH 31, 1997.

THE SECOND LOT, IN AREA 30A, SHEUNG SHUI, NEW TERRITORIES, HAS AN AREA OF 2,631 SQUARE METRES. IT IS EARMARKED FOR INDUSTRIAL AND/OR GODOWN PURPOSES (EXCLUDING ANY GODOWN FOR DANGEROUS GOODS).

THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 7,893 SQUARE METRES ON OR BEFORE MARCH 31, 1997.

THE THIRD LOT IS IN MA ON SHAN TOWN CENTRE, AREA 100, SHA TIN, NEW TERRITORIES. WITH AN AREA OF ABOUT 6,450 SQUARE METRES, IT IS DESIGNATED FOR NON-INDUSTRIAL (EXCLUDING GODOWN) PURPOSES.

THE BUILDING COVENANT STIPULATES THAT THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 25,891 SQUARE METRES ON OR BEFORE MARCH 31, 1997.

THE REMAINING LOT IN HUNG SHUI KIU, YUEN LONG, NEW TERRITORIES HAS AN AREA OF ABOUT 1,844 SQUARE METRES, WHICH IS INTENDED FOR NONINDUSTRIAL PURPOSES, WITH THE FIRST THREE FLOORS FOR NON-INDUSTRIAL (EXCLUDING GODOWN) PURPOSES AND THE REMAINING FLOORS FOR PRIVATE RESIDENTIAL PURPOSES.

THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 7,100 SQUARE METRES ON OR BEFORE MARCH 31, 1996.

FULL PARTICULARS AND CONDITIONS OF SALE MAY RE OBTAINED FROM THE BUILDINGS AND LANDS DEPARTMENT, 14TH FLOOR, MURRAY BUILDING, GARDEN ROAD, HONG KONG AND THE DISTRICT LANDS OFFICES KOWLOON, YAU MA TEI CAR PARK BUILDING, 10TH FLOOR, 250 SHANGHAI STREET, KOWLOON. SALE PLANS ARE AVAILABLE FOR INSPECTION IN THESE OFFICES.

CONDITIONS OF SALE ARE ALSO AVAILABLE AT THE DISTRICT LANDS OFFICES OF SHA TIN, TUEN MUN, YUEN LONG, TSUEN WAN, SAI KUNG, KWAI TSING, TAT PO, NORTH AND ISLANDS.

--------0----------

/28 ........

FRIDAY, MARCH 5, 1993

28 -

ROAD CLOSURE FOR URBAN RENEWAL PROJECTS *****

SEVERAL ROADS IN CENTRAL AND SHEUNG WAN WILL BE PERMANENTLY CLOSED TO MAKE WAY FOR URBAN RENEWAL PROJECTS BY THE LAND DEVELOPMENT CORPORATION, IT WAS GAZETTED TODAY (FRIDAY).

THE WHOLE OF WAI SAN LANE AND PORTIONS OF GILMAN STREET, WING ON STREET, TUNG MAN STREET AND HING LUNG STREET IN CENTRAL WILL BE CLOSED FOR WORKS ON A DAY NURSERY, COMMERCIAL ACCOMMODATION AND A LANDSCAPED PUBLIC OPEN SPACE.

UNDER THE PROJECT, A PEDESTRIAN AND VEHICULAR ACCESS WILL BE BUILT FROM QUEEN’S ROAD CENTRAL TO THE REAR OF A BUILDING AT 1-7 HING LUNG STREET.

IN SHEUNG WAN, KWONG YUEN STREET WEST, KWONG YUEN STREET EAST, WING SING STREET AND THE LANE AT THE REAR OF WING WO STREET TEMPORARY PLAYGROUND WILL BE CLOSED TO MAKE WAY FOR THE CONSTRUCTION OF URBAN COUNCIL FACILITIES, COMMERCIAL ACCOMMODATION AND A LANDSCAPED OPEN SPACE.

THE ROAD CLOSURE WILL BE IMPLEMENTED WHEN THE PREMISES IN THE AREAS OF THE URBAN RENEWAL PROJECTS ARE VACATED.

--------0-----------

WORKS TO IMPROVE TOLO HARBOUR WATER QUALITY

*****

THE DRAINAGE SERVICES DEPARTMENT IS INVITING TENDERS FOR SEWERAGE CONSTRUCTION WORKS IN SHA TIN.

THE WORKS INCLUDE CONSTRUCTION OF GRAVITY SEWERAGE SYSTEMS, PUMPING STATIONS, AN INTERCEPTOR CHAMBER AND HYDRO BRAKE CHAMBERS IN 14 SHA TIN VILLAGES, FORMING PART OF THE TOLO HARBOUR SEWERAGE OF UNSEWERED AREAS SCHEME.

WHEN THE SCHEME IS COMPLETED, ALL SEWAGE FROM UNSEWERED DEVELOPMENTS AT 165 LOCATIONS WITHIN TOLO HARBOUR CATCHMENT WILL BE COLLECTED AND TREATED BEFORE DISPOSAL.

THIS WILL HELP TO IMPROVE THE WATER QUALITY IN TOLO HARBOUR TO AN ACCEPTABLE STANDARD AND UPGRADE THE SANITARY CONDITION OF THE EXISTING UNSEWERED AREAS.

THE 14 VILLAGES TO BE SEWERED INCLUDE HEUNG FAN LIU (EAST PART), PAK TIN, TIN SAM, KAK TIN, HA KENG HAU, SHEUNG KENG HAU, HIN TIN, TAI WAI, SHA TIN TAU, TSANG TAI UK, SHA TIN WAI, TO SHEK, CHAP WAI KON AND NGAU PEI SHA.

/WORKS ARE ........

FRIDAY, MARCH 5, 1993

29

WORKS ARE EXPECTED TO START IN JUNE FOR COMPLETION IN EARLY 1995.

THE DEADLINE FOR SUBMITTING TENDERS IS NOON ON APRIL 2.

FORMS OF TENDER AND FURTHER PARTICULARS MAY BE OBTAINED FROM HALCROW-FRAENKEL, WHICH HAS BEEN COMMISSIONED TO SUPERVISE THE CONSTRUCTION WORKS. ITS ADDRESS IS ROOM 3201, CENTRAL PLAZA, IB HARBOUR ROAD, WAN CHAI, HONG KONG.

--------0-----------

NEW FOOTBRIDGE AT CLEAR WATER RAY ROAD * * * * *

THE HIGHWAYS DEPARTMENT PROPOSES TO CONSTRUCT A GRADE-SEPARATED PEDESTRIAN CROSSING ACROSS CLEAR WATER BAY ROAD NEAR PIK UK IN SAI KUNG.

PROPOSED WORKS INCLUDE CONSTRUCTION OF A COVERED FOOTBRIDGE WITH RAMPS AND STAIRCASES ACROSS CLEAR WATER BAY ROAD; ASSOCIATED FOOTPATH AND DRAINAGE WORKS AND ANCILLARY WORKS.

A NOTICE CONCERNING THE PROPOSED WORKS IS GAZETTED TODAY (FRIDAY).

A PLAN SHOWING THE EXTENT OF THE WORKS TOGETHER WITH A SCHEME DESCRIPTION CAN BE SEEN AT:

* CENTRAL AND WESTERN DISTRICT OFFICE, PUBLIC ENQUIRY SERVICE CENTRE, GROUND FLOOR, HARBOUR BUILDING, 38 PIER ROAD, CENTRAL; AND

* SAI KUNG DISTRICT OFFICE AND DISTRICT LANDS OFFICE, GROUND FLOOR AND SECOND TO THIRD FLOORS, SAI KUNG GOVERNMENT OFFICES BUILDING, 34 CHAN MAN STREET, SAI KUNG.

ANY PERSON WHO WISHES TO OBJECT TO THE WORKS OR THE USE, OR BOTH IS REQUIRED TO ADDRESS HIS OBJECTION IN WRITING TO THE SECRETARY FOR TRANSPORT, CENTRAL GOVERNMENT OFFICES, EAST WING, SECOND FLOOR, LOWER ALBERT ROAD, ON OR BEFORE MAY I.

--------0-----------

/30........

FRIDAY, MARCH 5, 1993

- 30 -

SPECIAL SCHOOLS FOR KWAI CHUNG AND TS1NG YI ******

THE ARCHITECTURAL SERVICES DEPARTMENT IS INVITING TENDERS FOR THE CONSTRUCTION OF TWO SPECIAL SCHOOLS IN KWAI CHUNG AND TSING YI FOR MODERATELY AND SEVERELY MENTALLY HANDICAPPED CHILDREN RESPECTIVELY.

LOCATED AT KWAI SHING AREA 10B, THE KWAI CHUNG SCHOOL COVERS A SITE AREA OF 2,400 SQUARE METRES AND CAN ACCOMMODATE 100 MODERATELY MENTALLY HANDICAPPED STUDENTS ON ITS TWO-STOREY PREMISES.

THERE WILL BE A TOTAL OF 10 GENERAL CLASSROOMS, SEVEN SPECIAL CLASSROOMS AND THREE PARAMEDICAL ROOMS IN ADDITION TO STAFF FACILITIES.

A COVERED PLAYGROUND AND A PARKING AREA WILL ALSO BE PROVIDED ON THE GROUND FLOOR.

ANOTHER SPECIAL SCHOOL WILL BE BUILT AT CHING HONG ROAD, TSING YI TO ACCOMMODATE 80 SEVERELY MENTALLY HANDICAPPED CHILDREN, WITH BOARDING FACILITIES FOR 60.

THE TWO-STOREY SCHOOL PREMISES WILL HAVE 10 GENERAL CLASSROOMS, FIVE SPECIAL CLASSROOMS AND FOUR THERAPY ROOMS.

PROVISION OF OTHER SUPPORTING FACILITIES LIKE CANTEEN AND MEDICAL INSPECTION ROOM IS ALSO INCLUDED IN THE CONTRACT.

WORKS FOR BOTH PROJECTS ARE SCHEDULED TO START IN MAY FOR COMPLETION IN 11 AND 15 MONTHS RESPECTIVELY.

TENDER OFFERS WILL CLOSE AT NOON ON MARCH 26.

FORMS OF TENDER AND FURTHER PARTICULARS MAY BE OBTAINED FROM THE ARCHITECTURAL SERVICES DEPARTMENT, 34TH FLOOR, QUEENSWAY GOVERNMENT OFFICES, 66 QUEENSWAY, HONG KONG.

------0-------

TENDERS INVITED FOR OPEN SPACE CONSTRUCTION

*****

THE ARCHITECTURAL SERVICES DEPARTMENT IS INVITING TENDERS FOR THE CONSTRUCTION OF AN OPEN SPACE AT KA WAI MAN ROAD, KENNEDY TOWN.

PLAY EQUIPMENT FOR CHILDREN, TOILETS AND ARBOURS/PAVILIONS WILL BE PROVIDED AT THE 2,948-SQUARE-METRE SITE.

WORKS ARE EXPECTED TO START IN MAY FOR COMPLETION IN NOVEMBER THIS YEAR.

/TENDER OFFERS ........

FRIDAY, MARCH 5, 1993

- 31

TENDER OFFERS FOR BOTH PROJECTS WILL CLOSE AT NOON ON APRIL 2.

FORMS OF TENDER AND FURTHER PARTICULARS CAN BE OBTAINED FROM THE ARCHITECTURAL SERVICES DEPARTMENT, 34TH FLOOR, QUEENSWAY GOVERNMENT OFFICES, 66 QUEENSWAY, HONG KONG.

-----0------

PREQUALIFICATION OF TENDERERS FOR PARKING METER MANAGEMENT

♦ * * * *

THE TRANSPORT DEPARTMENT IS INVITING APPLICATIONS FOR PREQUALIFICATION TO TENDER FOR A CONTRACT TO MANAGE AND MAINTAIN ALL PARKING METERS IN HONG KONG.

A SPOKESMAN FOR THE DEPARTMENT SAID SUCCESSFUL APPLICANTS WOULD BE INVITED TO TENDER FOR THE CONTRACT IN JUNE.

DETAILS OF THE PREQUALIFICATION EXERCISE ARE CONTAINED GAZETTE PUBLISHED TODAY (FRIDAY).

TN THE

APPLICANTS FOR PREQUALIFICATION ARE REQUIRED TO PROVIDE EVIDENCE OF EXPERIENCE AND COMPETENCE TN THE MANAGEMENT OF VEHICLE PARKING SYSTEMS OR ANY OTHER FACILITY, AND EVIDENCE OF EXPERIENCE AND COMPETENCE IN THE MAINTENANCE OF MECHANICAL PARKING METERS OR CLOCKS AND WATCHES; OR ALTERNATIVELY EVIDENCE OF ABILITY TO ENGAGE EXPERTISE AND RESOURCES IN THESE RESPECTS FROM ACCEPTABLE SOURCES.

APPLICANTS ARE ALSO REQUIRED TO PROVIDE EVIDENCE OF FINANCIAL CAPABILITY IN UNDERTAKING THE CONTRACT, AND TO SUBMIT. PROPOSALS TO DEMONSTRATE THEIR UNDERSTANDING OF THE TASKS INVOLVED, THE SPOKESMAN SAID.

PREQUALTFTCATTON DOCUMENTS ARE NOW OBTAINABLE DURING OFFICE HOURS FROM THE TRANSPORT DEPARTMENT RECEPTION COUNTER ON 41 ST FLOOR, IMMIGRATION TOWER, 7 GLOUCESTER ROAD, BY PRODUCING A COMPANY LETTER INDICATING INTEREST TN TENDERING FOR THE CONTRACT.

CLOSING DATE FOR. APPLICATION IS NOON ON APRIL 16.

ENQUIRIES ON GENERAL AND OPERATIONAL ASPECTS OF THIS PREQUALIFICATION INVITATION SHOULD BE DIRECTED TO MR VINCENT FAN OF THE TRANSPORT DEPARTMENT ON TEL 829 5495; ON MAINTENANCE ASPECTS TO MR ALBERT 1,0 OF THE ELECTRICAL AND MECHANICAL SERVICES DEPARTMENT ON TEL 895 8717 AND ON FINANCIAL ASPECTS TO MR RICKY CHUI OF THE TRANSPORT DEPARTMENT ON TEL 829 5486.

--------0

/32 ........

FRIDAY, MARCH 5, 1993

- 32 -

FARM LAND IN YUEN LONG TO BE RESUMED

*****

THE GOVERNMENT IS TO RESUME 13 PRIVATE AGRICULTURAL LOTS IN YUEN LONG FOR CONSTRUCTING A DRAINAGE CHANNEL AND ASSOCIATED WORKS AT MAI PO LUNG TO ALLEVIATE FLOODING RISK.

LOCATED IN SAN TIN, THE AGRICULTURAL LOTS HAVE A TOTAL AREA OF 4,760 SQUARE METRES. THE LAND WILL BE REVERTED TO THE GOVERNMENT THREE MONTHS AFTER THE RESUMPTION NOTICE IS GAZETTED TODAY (FRIDAY).

THE DRAINAGE IMPROVEMENT WORKS INVOLVED ARE SCHEDULED TO START IN MAY THIS YEAR.

------0-------

GREAT IMPORTANCE ATTACHED

TO CAREERS EDUCATION

* * * * *

THE

THE GREAT EDUCATION,

RECORD NUMBER OF ENTRIES TO THE CAREERS QUIZ ’93 IMPORTANCE SCHOOLS AND STUDENTS ATTACHED TO THE ASSISTANT COMMISSIONER FOR LABOUR, MRS ANGELA

TODAY (FRIDAY).

REFLECTS CAREERS HO 0 SAID

’’WITH MORE THAN 136,000 STUDENTS TAKING PART IN THE QUIZ, IT ALSO REFLECTS FOR CAREERS INFORMATION BY STUDENTS," PRESENTATION CEREMONY OF THE QUIZ.

FROM 285 SECONDARY SCHOOLS THAT THERE IS A GREAT DEMAND MRS HO SAID AT THE PRIZE

IN VIEW OF THIS, FREE COACH SERVICE IS BEING PROVIDED BY THE CAREERS ADVISORY SERVICE (CAS) TO HELP SCHOOLS ARRANGE STUDENT GROUPS TO VISIT THE CAREERS INFORMATION CENTRES (CICS), SHE ADDED.

THE CICS IN SOUTHORN CENTRE, WAN CHAT AND IN MONG KOK GOVERNMENT OFFICES PROVIDE REFERENCE MATERIALS ON CAREERS, VOCATIONAL TRAINING AND FURTHER EDUCATION, AND SLIDE PRESENTATIONS, CASSETTE RECORDINGS AND VIDEO TAPES ON CAREERS, AS WELL AS A FREE ENQUIRY SERVICE.

SHE SAID: "I HOPE STUDENTS WILL MAKE BETTER USE OF OUR SERVICES FOR COLLECTING MORE INFORMATION TO PLAN FOR THEIR FUTURE."

THE CAREERS QUIZ ’93, ORGANISED BY THE LABOUR DEPARTMENT’S CAS AND SPONSORED BY PHILIPS HONG KONG LIMITED, AIMED AT AROUSING STUDENTS’ AWARENESS OF THE IMPORTANCE OF CHOOSING SUITABLE CAREERS AND TO ENCOURAGE THEM TO LOOK FOR FIRST-HAND INFORMATION ON CAREERS AND FURTHER TRAINING OPPORTUNITIES.

/PARTICIPANTS HAVE

FRIDAY, MARCH 5, 1993

- 33 -

PARTICIPANTS HAVE TO ANSWER 50 MULTIPLE-CHOICE QUESTIONS RELATING TO INFORMATION ON CAREERS, TECHNICAL AND VOCATIONAL TRAINING, AND LABOUR LAW.

DURING THE CEREMONY, MRS HO AND THE GENERAL MANAGER OF THE HUMAN RESOURCES DEPARTMENT OF PHILIPS HONG KONG LIMITED, MR ANDREW MOK, PRESENTED PRIZES TO WINNING SCHOOLS, HIGHEST-SCORING STUDENTS, AND OUTSTANDING STUDENTS IN EACH OF THE FORMS 3, 4 AND 5 SECTIONS.

- 0------------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

* * * * * $ MILLION

OPENING BALANCE IN THE ACCOUNT 1,420

REVERSAL OF LAF BALANCE AFTER REVERSAL OF LAF + 730 2,150

NET INJECTION/WITHDRAWAL TODAY N IL

EFFECT OF LAF TODAY CLOSING BALANCE IN THE ACCOUNT -870 1 ,280

LAF RATE 2.00 BID/4.00 OFFER TW I 113.7 *-0.2* 5.3.93

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS Y I ELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.47 PCT 14 MONTHS 2405 5.50 102.70 3.21

1 MONTH 2.60 PCT 17 MONTHS 24 08 5.50 101.56 3.29

3 MONTHS 2.85 PCT 20 MONTHS 24 1 1 4.37 5 101.91 3.48

6 MONTHS 2.96 PCT 23 MONTHS 2502 1.625 102.00 3.71

12 MONTHS 3.18 PCT

TOTAL TURNOVER OF RILLS AND BONDS - 18,382 MN

CLOSED 5 MARCH 1993

0

Received by PaO 0D ~ 9 MR. jgQj

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SATURDAY, MARCH 6, 199.3

CONTENTS

PAGE NO.

J,ADY YOUDE PRESENTS AWARDS TO 768 STUDENTS .................... 1

HUMAN RIGHTS FORUM ............................................ .3

KWAT TSTNG SCHOOLS TO ENJOY QUIETER CLASSROOMS ................. 4

CORRECTIONAL SERVICES SPORTS ASSOCIATION DONATES CHAIRS TO HANDICAPPED CHILDREN ......................................... 5

CASH ATD TO DEPENDENTS OF TRAFFIC ACCTDENT VICTIMS ............. 5

YUEN LONG "REPORT CRIME" EXHIBITION ............................ 6

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS. 7

SATURDAY, MARCH 6, 1993

1

LADY YOUDE PRESENTS AWARDS TO 768 STUDENTS *****

LADY YOUDE TODAY (SATURDAY) PRESENTED AWARDS TO 768 STUDENTS WHO WERE GRANTED AWARDS AND SCHOLARSHIPS UNDER THE SIR EDWARD YOUDE MEMORIAL FUND.

CHAIRMAN OF THE BOARD OF TRUSTEES, SIR QUO-WEI LEE, AND CHAIRMAN OF THE COUNCIL, MR RONALD ARCULLI, ALSO OFFICIATED AT THE CEREMONY IN CITY HALL.

"TODAY, WE ARE MEETING AN OUTSTANDING GROUP OF HONG KONG STUDENTS, SELECTED FOR THE SIR EDWARD YOUDE MEMORIAL AWARDS AFTER THE MOST VIGOROUS COMPETITION," LADY YOUDE SAID.

"THEY REPRESENT THE BEST IN OUR YOUNGER GENERATION, AND IT IS THEY WHO WILL LEAD HONG KONG INTO A BRIGHT AND PROSPEROUS FUTURE," SHE SAID.

IN PURSUING THE VERY OBJECTIVE OF THE FUND, WHICH IS TO ENCOURAGE AND PROMOTE EDUCATION AND LEARNING OF THE YOUNG PEOPLE OF HONG KONG, THE FUND HAS DISBURSED A TOTAL OF $7 MILLION FOR THE 1992/93 ACADEMIC YEAR.

THESE INCLUDE 12 AWARDS FOR OVERSEAS STUDIES, FOUR MEDALS FOR STUDENTS WHO HAVE OBTAINED OUTSTANDING RESULTS IN PUBLIC EXAMINATIONS, EIGHT AWARDS FOR DISABLED STUDENTS, 80 SCHOLARSHIPS AND 47 FELLOWSHIPS FOR TERTIARY AND POST-SECONDARY STUDENTS AND 617 PRIZES FOR SENIOR SECONDARY SCHOOL STUDENTS.

COMPETITION FOR THE OVERSEAS FELLOWSHIPS AND SCHOLARSHIPS IS EXTREMELY KEEN. TWELVE BRILLIANT STUDENTS, FROM OVER 230 APPLICANTS, HAVE WON THE AWARDS.

THEY WILL RECEIVE $175,000 A YEAR FOR A FELLOWSHIP AWARD OR $160,000 FOR A SCHOLARSHIP AWARD.

THESE STUDENTS WILL HAVE TO RETURN TO WORK IN HONG KONG FOR AT LEAST THREE YEARS AFTER COMPLETION OF THEIR STUDIES.

THE AWARD RECIPIENTS FOR THE SIX OVERSEAS FELLOWSHIPS ARE:

* MS KATUSHA TSUI, 25, A PAST STUDENT OF THE HONG KONG ACADEMY FOR PERFORMING ARTS. SHE PLANS TO PURSUE THE CERTIFICATE IN ADVANCE STUDY (VOCAL STUDIES) AT THE GUILDHALL SCHOOL OF MUSIC AND DRAMA.

* MR NG KA-WING, SIMON, 24, A MASTER DEGREE STUDENT OF THE UNIVERSITY OF HONG KONG, PLANS TO PURSUE A DOCTORATE IN TRANSPORT AT THE UNIVERSITY OF CAMBRIDGE.

* MISS TONG YEE-CHING, AMY, 23, A FIRST CLASS HONOURS STUDENT OF THE CHINESE UNIVERSITY OF HONG KONG AND RESEARCH WRITER WITH THE TIN TIN DAILY NEWS, INTENDS TO PURSUE A MASTER DEGREE IN INTERNATIONAL RELATIONS AT THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE.

/* MR KHAW .......

SATURDAY, MARCH 6, 1993

2

* MR KHAW WEI-KIANG, RICHARD, 22, A STUDENT OF POSTGRADUATE CERTIFICATE IN UAW AT THE CITY POLYTECHNIC OF HONG KONG, PLANS TO READ A MASTER DEGREE IN LAW AT CAMBRIDGE.

* MS WU WING-YEE, 28, A GRADUATE OF THE CALIFORNIA COLLEGE OF ARTS AND CRAFTS AND CURRENTLY A LECTURER OF THE HONG KONG ARTS CENTRE AND HONG KONG VISUAL ART CENTRE, PLANS TO STUDY FOR A MASTER DEGREE IN FINE ARTS AT THE UNIVERSITY OF CALIFORNIA TN BERKELEY, USA.

* MS CHUNG PO-YIN, 26, A MASTER STUDENT AT THE UNIVERSITY OF OXFORD, PLANS TO PURSUE A DOCTORATE IN COMMONWEALTH HISTORY AT OXFORD.

THE SIX OVERSEAS SCHOLARSHIPS WINNERS ARE:

» MR LAM YAT-L1NG, 18, OF ST PAUL’S CO-EDUCATIONAL COLLEGE, WHO OBTAINED NINE DISTINCTIONS IN THE HONG KONG CERTIFICATE OF EDUCATION EXAMINATION IN 1991. HE PLANS TO STUDY ELECTRICAL ENGINEERING AT PRINCETON UNIVERSITY, USA.

* MR HUI CHEE-YIN, 17, OF WAH YAN COLLEGE (HK), WHO SCORED 10 DISTINCTIONS IN HKCEE 1992, PLANS TO STUD! COMPUTER STUDIES AT MIT. HE IS ALSO THE WINNER OF THE SIR EDWARD YOUDE MEMORIAL MEDAL FOR BEST PERFORMANCE AT THE HKCEE.

» MISS WAT SZE-KEE, 18, OF ST PAUL’S CO-EDUCATIONAL COLLEGE, WHO OBTAINED NINE DISTINCTIONS IN HKCEE 1991, PLANS TO READ MEDICINE IN UK.

* MISS LI YICK-YEE, 19, OF GOOD HOPE SCHOOL, SCORED NINE DISTINCTIONS IN HKCEE 1992, INTENDS TO STUDY CIVIL ENGINEERING AT MIT.

* MR LAU WAI-LEUK, ALEXANDER, 18, OF QUEEN’S COLLEGE, OBTAINED NINE DISTINCTIONS IN HKCEE 1991, PLANS TO READ COMPUTER SCIENCE AT STANFORD OR UC BERKELEY, USA.

» MR AU YUK-LUN, 17, OF DIOCESAN BOYS' SCHOOL, OBTAINED NINE DISTINCTIONS IN HKCEE 1992, PLANS TO PURSUE A BACHELOR DEGREE IN ELECTRICAL AND ELECTRONIC ENGINEERING AT STANFORD.

FOUR STUDENTS WHO OBTAINED OUTSTANDING RESULTS IN 1992 PUBLIC EXAMINATIONS HAVE BEEN AWARDED THE SIR EDWARD YOUDE MEMORIAL MEDALS. THEY ARE:

* MR HUI CHEE-YIN OF WAH YAN COLLEGE (IIK ) WHO HAS SCORED 10 A’S IN THE HONG KONG CERTIFICATE OF EDUCATION EXAMINATION.

» MISS CATHERINE Hill OF CLEMENTI SECONDARY SCHOOL WHO HAS SCORED SIX A’S IN THE HONG KONG HIGHER LEVEL EXAMINATION (SCIENCE STREAM).

* MR JAP WING-FAI OF QUEEN’S COLLEGE WHO HAS SCORED FIVE A’S IN THE HONG KONG ADVANCED LEVEL EXAMINATION (SCIENCE STREAM).

/* MISS YU .......

SATURDAY, MARCH 6, 1993

3

* MISS YU CHING-SUET OF MARYKNOLL FATHER’S SCHOOL WHO HAS SCORED FOUR A’S IN THE HONG KONG ADVANCED LEVEL EXAMINATION (ARTS STREAM).

THE COUNCIL HAS ALSO SPONSORED THE YOUNG FRIENDS OF HONG KONG ARTS FESTIVAL FOR THE SECOND YEAR. THIS PROJECT INCREASES SECONDARY SCHOOL STUDENTS’ EXPOSURE TO THE PERFORMING ARTS AND OVER 4,000 STUDENTS HAVE BENEFITED.

THIRTY-ONE POSTGRADUATE STUDENTS HAVE BEEN AWARDED THE LOCAL SIR EDWARD YOUDE MEMORIAL FELLOWSHIPS, AT $30,000 EACH AND 80 UNDERGRADUATE AND DIPLOMA STUDENTS AWARDED THE LOCAL SCHOLARSHIPS AT $12,000.

A SUM OF $180,000 HAS BEEN EXPENDED ON THE AWARD SCHEME FOR THE DISABLED STUDENTS, UNDER WHICH EIGHT STUDENTS HAVE BENEFITED.

MR ARCULLI ANNOUNCED THAT TWO NEW INITIATIVES WOULD BE INTRODUCED NEXT YEAR TO EXPAND THE AWARD SCHEME FOR DISABLED STUDENTS FOR THE PURCHASE OF STUDY AIDS TO COVER HONG KONG STUDENTS STUDYING ABROAD, AND TO INSTITUTE AN OVERSEAS SCHOLARSHIP EXCLUSIVELY FOR DISABLED STUDENTS.

THE SIR EDWARD YOUDE MEMORIAL FUND HAS SINCE ITS INCEPTION SUPPORTED MORE THAN 4,000 HONG KONG STUDENTS UNDER ITS MAJOR AWARDS SCHEMES.

"WE ARE VERY HAPPY TO SEE THE FRUIT OF OUR EFFORTS. MORE THAN 300 SCHOLARS AND FELLOWS HAVE NOW COMPLETED THEIR STUDIES AND ARE NOW WORKING TN HONG KONG IN DIFFERENT FIELDS, CONTRIBUTING TO THE WELLBEING AND DEVELOPMENT OF THE TERRITORY," MR ARCULLI SAID.

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HUMAN RIGHTS FORUM ♦ * ♦ ♦ ♦

A FORUM TO STUDY THE FINDINGS OF TWO LATEST SURVEYS ON THE GENERAL ATTITUDE TOWARDS HUMAN RIGHTS WILL BE HELD NEXT THURSDAY (MARCH 11).

THE FORUM IS ORGANISED BY THE COMMITTEE ON THE PROMOTION OF CIVIC EDUCATION TO ENCOURAGE PUBLIC AWARENESS OF THESE BASIC RIGHTS.

IT WILL BE HELD AT 4.30 PM AT MEETING ROOMS 106 AND 407 OF THE HONG KONG CONVENTION AND EXHIBITION CENTRE, 1 HARBOUR ROAD, WAN CHAI.

THE HONG KONG FEDERATION OF YOUTH GROUPS WILL PRESENT A PRELIMINARY REPORT ON ITS SURVEY - "YOUTH AND HUMAN RIGHTS".

ANOTHER SURVEY REPORT BY THE OCEAN JAYCEES ON HONG KONG JUNIOR CHAMBER OF COMMERCE MEMBERS WILL ALSO BE TABLED.

THE TELEPHONE POLL WAS CONDUCTED BETWEEN OCTOBER t AND NOVEMBER 17 LAST YEAR.

/REPRESENTATIVES FROM .......

SATURDAY, MARCH 6, 1993

4

REPRESENTATIVES FROM THE JUSTICE ANH PEACE COMMISSION OF HONG KONG CATHOLIC DIOCESE WILL SPEAK ON THEIR EXPERIENCES IN PROMOTING HUMAN RIGHTS EDUCATION SINCE 1990.

MEMBERS OF THE 19 DISTRICT CIVIC EDUCATION BODIES AND VOLUNTARY AGENCIES WILL ALSO PARTICIPATE.

ENQUIRIES (’AN BE MADE ON TEL 835 1381.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO ATTEND THE FORUM.

THOSE INTERESTED TO TAKE PART SHOULD CONTACT INFORMATION OFFICER, MS CLAUDIA YEUNG ON TEL 835 1440 OF THE CITY AND NEW

TERRITORIES ADMINISTRATION FOR RESERVATION.

- - 0 -----------

KWAI TSING SCHOOLS TO ENJOY QUIETER CLASSROOMS

*****

THE GOVERNMENT IS PLANNING TO INSTALL NOISE-MUTING DEVICES TN FIVE SCHOOLS IN KWAI TSING TO ENSURE A QUIETER LEARNING ENVIRONMENT FOR STUDENTS.

SPEAKING AT THE DISTRICT’S TREE PLANTING DAY THIS (SATURDAY) AFTERNOON, DISTRICT OFFICER, MRS AGNES ALLCOCK, SAID THE GOVERNMENT HAD BEEN COMMITTED TO IMPROVING THE ENVIRONMENT IN RECENT YEARS.

"LAST YEAR, THE GOVERNOR ANNOUNCED IN HIS POLICY SPEECH A $3 BILLION PLAN TO IMPROVE THE TERRITORY’S WATER QUALITY."

AS TO THE DISTRICT’S EFFORTS TO PROTECT ITS SURROUNDINGS, MRS ALLCOCK SAID THE DISTRICT BOARD HAD PLAYED A SUCCESSFUL ROLE IN PROMOTING THESE ACTIVITIES.

THE TREE PLANTING DAY WAS ORGANISED BY THE DISTRICT BOARD’S ENVIRONMENTAL PROTECTION COMMITTEE WITH SPONSORSHIP FROM THE REGIONAL COUNCIL.

--------0-----------

/5 .........

SATURDAY, MARCH 6, 1993

5

CORRECTIONAL SERVICES SPORTS ASSOCIATION DONATES CHAIRS TO HANDICAPPED CHILDREN ******

THE HANDICAPPED CHILDREN IN CARITAS MEDICAL CENTRE TODAY (SATURDAY) RECEIVED A DONATION OE CHAIRS FROM THE CORRECTIONAL SERVICES DEPARTMENT SPORTS ASSOCIATION (CSDSA).

THE PRESENTATION WAS MADE BY CSDSA CHAIRMAN, MR H S RUTTON, AT A CEREMONY AT THE CARITAS MEDICAL CENTRE.

PRODUCED BY THE CORRECTIONAL SERVICES INDUSTRIES IN STANLEY PRISON, THE WOODEN CEREBRAL PALSY CHAIR IS A NECESSARY TOOL TO FACILITATE TRAINING AND CORRECTION OF ABNORMAL POSTURE OF THE HANDICAPPED CHILDREN.

IT IS EASY TO CARRY AND IS CAREFULLY DESIGNED TO MAKE IT BOTH COMFORTABLE AND SAFE.

A TOTAL OE 40 SUCH CHAIRS WORTH SOME $28,000 WILL BE DELIVERED TO THE CENTRE IN BATCHES.

THE DONATION IS PART OF THE PROCEEDS RAISED AT THE AUTUMN FAIR WHICH WAS ORGANISED BY CSDSA IN NOVEMBER LAST YEAR. OTHER RECIPIENTS OF DONATIONS INCLUDED THE SOCIETY FOR THE REHABILITATION OF OFFENDERS, HONG KONG ASSOCIATION OF THE BLIND AND YOUTH OUTREACH.

THE AUTUMN FAIR IS AN ANNUAL EVENT DURING WHICH PRODUCTS LIKE STUFFED TOYS AND HAND I CRAFTS ARE ON SALE TO MEMBERS OF THE PUBLIC. ALL PROCEEDS RAISED WERE DONATED TO CHARITABLE ORGANISATIONS.

- - 0------------

('ASH AID TO DEPENDENTS OF TRAFFIC ACCIDENT VICTIMS

*****

THE SOCIAL WELFARE DEPARTMENT TODAY (SATURDAY) APPROVED $97,801 FROM THE TRAFFIC' ACCIDENT VICTIMS ASSISTANCE (TAVA) FUND TO THE DEPENDENTS OF TWO VICTIMS KILLED IN A TRAFFIC' ACCIDENT IN YUEN LONG EARLY THIS YEAR.

BOTH WERE KNOCKED DOWN BY A PRIVATE CAR AT HUNG SHUT KIU IN YUEN LONG ON JANUARY 27.

ONE OF THE VI CT I MS, A 37-YEAR-OLD MAN, WAS SURVIVED BY HER WIFE, PARENTS AND TWO CHILDREN. THE FAMILY WAS GIVEN BURIAL AND DEATH GRANTS AMOUNTING TO $85,550.

THE DEPARTMENT ALSO GAVE GRANTS TO THE DEPENDENT OF THE OTHER DECEASED, AND ANOTHER VICTIM INJURED IN THE ACCIDENT.

A SPOKESMAN FOR THE DEPARTMENT SAID THE TAVA SCHEME PROVIDED QUICK FINANCIAL HELP TO TRAFFIC ACCIDENT VI ('TIMS OR THEIR DEPENDENTS WITHOUT REGARD TO THE MEANS OF A FAMILY OR. THE FAULT ELEMENT IN THE ACCIDENT.

/BENEFICIARIES UNDER .......

SATURDAY, MARCH 6, 1993

6

BENEFICIARIES UNDER THE SCHEME WILL RETAIN THE RIGHT TO MAKE CLAIMS FOR LEGAL DAMAGES OR COMPENSATION FROM OTHER SOURCES IN THE USUAL WAY.

HOWEVER, THOSE WHO RECEIVE OTHER DAMAGES OR COMPENSATION RELATING TO THE SAME ACCIDENT ARE REQUIRED TO REPAY THE AMOUNT OF ASSISTANCE ALREADY RECEIVED FROM THE SCHEME.

’’BUT IN AN'i CASE, THE AMOUNT REPAID WILL NOT EXCEED THE AMOUNT OF DAMAGES OR COMPENSATION AWARDED,” THE SPOKESMAN ADDED.

ENQUIRIES ABOUT THE SCHEME MAY BE DIRECTED TO THE DEPARTMENT’S TAVA SECTION IN ROOM 942, NINTH FLOOR, WU CHUNG HOUSE, 213 QUEEN’S ROAD EAST, WAN CHAI OR ON TEL 892 5526.

-----0-------

YUEN LONG ’’REPORT CRIME" EXHIBITION

*****

A "REPORT CRIME" EXHIBITION IS BEING HELD AT THE YUEN LONG PLAZA OVER THE WEEKEND AS AN INTEGRAL PARI' OF THE DISTRICT’S FIGHT CRIME CAMPAIGN.

SPEAKING AT THE RIBBON-CUTTING CEREMONY THIS (SATURDAY) AFTERNOON, THE CHAIRMAN OF THE DISTRICT FIGHT CRIME COMMITTEE (DFCC), MR CHENG SHU-MING, SAID THE EVENT WAS AIMED AT HELPING LOCAL RESIDENTS ON THE CRIME-REPORTING PROCEDURE.

MR CHENG SAID THE DFCC WAS PROMOTING RESIDENTS’ AWARENESS OF, AND PARTICIPATION IN, CRIME PREVENTION, AS WELL AS ORGANISING ALL KINDS OF COMMUNITY INVOLVEMENT ACTIVITIES TO HAMMER HOME THE MESSAGE.

THE DFCC HAS ORGANISED A VISIT TO THE CORRECTIONAL SERVICES DEPARTMENT, A POSTER DESIGN COMPETITION, A FIGHT CRIME CARNIVAL, A VARIETY SHOW AND FAMILY CAMP THIS YEAR.

MR CHENG SAID THE EXHIBITION FEATURED INFORMATION DISPLAY PANELS AND INTERESTING COMPUTER GAMES.

PEOPLE WILL ALSO HAVE A CHANCE TO MEET MR ROBOTCOP, THE TERRITORY’S SOLE MECHANICAL POLICEMAN, HE SAID.

ALSO OFFICIATING AT THE CEREMONY WERE THE COMMISSIONER FOR NARCOTICS, MR ALASDAIR SINCLAIR; YUEN LONG DISTRICT BOARD CHAIRMAN, MR TAT KUEN; DISTRICT OFFICER, MR ROBIN MCLEISH; POLICE DISTRICT COMMANDER, MR VINCE WALSH; NEW TERRITORIES NORTHWEST REGIONAL OFFICER OF THE INDEPENDENT COMMISSION AGAINST CORRUPTION, MISS ROSALINE CHEUNG; AND THE MISS HONG KONG BEAUTIES EMILY LO AND SHIRLEY CHEUNG.

THE EXHIBITION IS JOINTLY ORGANISED BY THE DFCC, THE POLICE, THE ACTION COMMI TTEE AGA INST NARCOTICS AND THE NEW TERRITORIES REGIONAL OFFICE OF THE INDEPENDENT COMMISSION AGAINST CORRUPTION.

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/7.........

SATURDAY, MARCH 6, 1993

7 -

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

* * * * *

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,280

REVERSAL OF LAF +850

BALANCE AFTER REVERSAL OF LAF 2,130

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -1,050

CLOSING BALANCE IN THE ACCOUNT 1,080

LAF RATE 2.00 BID/4.00 OFFER

- 0 -

OL --

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SUNDAY, MARCH 7, 1993

CONTENTS PAGE NO.

HUMAN RIGHTS TELELINE A "RINGING SUCCESS" ...................... 1

COMMUNITY PARTICIPATION NEEDED TO ACHIEVE "HEALTH FOR ALL" .. 2

SURVEY ON OPERATION OF NEW TERRITORIES TAXIS ................... 3

OWNER FINED FOR DEFYING DEMOLITION ORDER ....................... 3

DISTRICT ADMINISTRATION HAS SUPPORT OF PEOPLE: SHA ............. 4

LOCAL ARTS GROUPS GET GRANTS ................................... 4

SUNDAY, MARCH 7, 1993

HUMAN RIGHTS TELELINE A "RINGING SUCCESS" *****

FROM THE NUMBER OF CALLS IT HAS BEEN RECEIVING, THE HUMAN RIGHTS TELELINE SERVICE IS CERTAINLY PROVING TO BE A "RINGING SUCCESS".

LAUNCHED ONLY THREE MONTHS AGO BY THE COMMITTEE ON THE PROMOTION OF CIVIC EDUCATION, IT HAS ALREADY DEALT WITH MORE THAN 108,400 ENQUIRIES - SOME 1,200 EVERYDAY.

A SPOKESMAN FOR THE COMMITTEE TODAY (SUNDAY) SAID THAT THE FREE PHONE-IN SERVICE HAS BEEN SO WELL-RECEIVED IS A WELCOME SIGN OF THE INTEREST OF THE COMMUNITY ON THE BILL OF RIGHTS ORDINANCE.

THE SPOKESMAN STRESSED THAT MAKING MORE PEOPLE AWARE OF THE CONTENTS OF THE ORDINANCE, WHICH WAS ENACTED IN JUNE 1991, WILL CONTINUE TO BE A PROMOTION PRIORITY IN THE COMING YEARS.

SOME OF HONG KONG’S ENTERTAINMENT CELEBRITIES HAVE ALREADY THROWN THEIR WEIGHT - AND VOICES - BEHIND IT.

FOR IT WAS WITH THEIR PROFESSIONAL HELP - THE PRODUCTION OF FIVE ’DRAMATISED’ RECORDINGS - THAT HELPED LAUNCH THE TELELINE ON DECEMBER 3 LAST YEAR WHICH GAVE THE PUBLIC, FOR THE FIRST TIME, A MORE DIRECT AND EASIER. ACCESS TO HUMAN RIGHTS INFORMATION.

THIS IS ONLY THE BEGINNING, THE SPOKESMAN SAID.

"WE WILL BE EXPANDING OUR INFORMATION BANK AT INTERMITTENT INTERVALS TO EVENTUALLY COVER ALL THE IMPORTANT FACETS OF THE LAW," HE EXPLAINED.

BUT FOR THE TIME BEING, THE COMMITTEE WILL BE CONCENTRATING ON THE MOST COMMON SITUATIONS BY FO( US I NG THEIR INCULCATIONS ON: THE FREEDOM OF OPINION AND SPEECH; FREEDOM OF PEACEFUL ASSEMBLY; EQUALITY BEFORE THE COURTS AND THE RIGHT TO A FAIR AND PUBLIC HEARING; PROTECTION OF PRIVACY, AND, THE ENTITLEMENT TO THESE RIGHTS WITHOUT ANY DISTINCTION.

WHERE EXISTING LAW MAY CONFLICT WITH, OR, CONTRAVENE THE SPIRIT OF THE ORDINANCE, AN EXPLANATION HAS BEEN WRITTEN INTO ONE OF THE SCENARIOS THAT THE GOVERNMENT IS CONDUCTING A REVIEW TO SEE HOW A BALANCE CAN BE STRUCK.

IN THE MEANTIME, HOWEVER, THE SPOKESMAN URGED THE PUBLIC TO CONTINUE TO MAKE FULL USE OF TELELINE BY DIALLING 187 8111, 187 8122 OR 187 8133. THE ACCESS CODE IS 6701 - 5.

/2 ........

SUNDAY, MARCH 7, 1993

2

COMMUNITY PARTICIPATION NEEDED TO ACHIEVE ’’HEALTH FOR ALL”

*****

TO ACHIEVE THE TARGET OF ’’HEALTH FOR ALL” REQUIRES THE PROMOTION OF HEALTH ACTIVITIES AND COMMUNITY PARTICIPATION, APART FROM THE PROVISION OF TREATMENT AND REHABILITATION SERVICES, THE DIRECTOR OF HEALTH, DR S H LEE, SAID TODAY (SUNDAY).

’’THAT IS WHY ’PARTNERSHIP IN HEALTH’ IS THE MOTTO OF OUR DISTRICT HEALTH SYSTEM," DR LEE ADDED.

HE WAS SPEAKING AT THE OPENING CEREMONY OF A ’’HEALTHY LIFESTYLE DAY” ORGANISED BY THE DEPARTMENT’S KWUN TONG DISTRICT HEALTH COMMITTEE TO PROMOTE PUBLIC AWARENESS OF THE IMPORTANCE OF ADOPTING HEALTHY LIFESTYLE.

’’THE PROMOTION OF HEALTH IS NO LONGER THE SOLE RESPONSIBILITY OF HEALTH CARE WORKERS, MEMBERS OF THE PUBLIC SHOULD ALSO HAVE A PART TO PLAY.

"PEOPLE FROM VARIOUS SECTORS OF THE COMMUNITY, SUCH AS EDUCATION, SOCIAL WELFARE, INDUSTRIAL AND COMMERCIAL FIELDS, AS WELL AS VOLUNTARY AGENCIES ALL PLAY AN IMPORTANT ROLE," HE SAID.

"IT IS VERY IMPORTANT THAT THESE PROFESSIONALS CAN HAVE CLOSE CO-ORDINATION IN ORDER TO IMPROVE THEIR SERVICES FOR RESIDENTS.

"FOR ’HEALTH’ IS NOT JUST FREE FROM DISEASES BUT ALSO THE PHYSICAL, MENTAL AND SOCIAL WELL-BEING OF A PERSON," DR LEE ADDED, QUOTING THE DEFINITION GIVEN BY THE WORLD HEALTH ORGANISATION.

HE SAID THE KWUN TONG DISTRICT HEALTH COMMITTEE SERVED TO PROVIDE A CHANNEL FOR VARIOUS GROUPS OF PEOPLE ENGAGED IN MEDICAL AND HEALTH SERVICES IN THE DISTRICT TO GET TOGETHER TO WORK FOR BETTER QUALITY SERVICES UNDER THE SPIRIT OF ’PARTNERSHIP IN HEALTH’.

ALSO SPEAKING AT THE OPENING CEREMONY, THE CHAIRMAN OF THE KWUN TONG DISTR I CT BOARD, MR LAM HANG-FAI, STRESSED THE IMPORTANCE OF "PREVENTION IS BETTER THAN CURE".

"I AM SURE THAT IF WE STICK CLOSELY AND PERSISTENTLY TO A HEALTHY LIFESTYLE, WE CAN EVENTUALLY BE HEALTHY AND FREE FROM DISEASES," HE SAID.

TODAY’S EVENT FEATURED GAME STALLS, DISPLAYS AND HEALTH CHECK COUNTERS WHICH CONVEYED HEALTHY LIFESTYLE MESSAGES TO MEMBERS OF THE PUBLIC.

/3 ........

SUNRAY, MARCH 7, 1993

SURVEY ON OPERATION OE NEW TERRITORIES TAXIS

*****

THE TRANSPORT DEPARTMENT IS CONDUCTING A SURVEY ON THE OPERATION CHARACTERISTICS AND FINANCE OF NEW TERRITORIES TAXIS.

A SPOKESMAN FOR THE DEPARTMENT SAID TODAY (SUNDAY) THAT THE SURVEY WAS AN ANNUAL EXERCISE AND COMPRISED A QUESTIONNAIRE SURVEY AND A METER-READING SURVEY.

QUESTIONNAIRE FORMS AND SKETCHES SHOWING THE LOCATIONS OF THE METER-READING CENTRES HAVE BEEN DISTRIBUTED TO TAXI OPERATORS SELECTED FOR THE SURVEY.

FOR THE METER-READING SURVEY, TAXI OWNERS SHOULD PRESENT THEIR VEHICLES TO THE METER-READING CENTRES FROM MARCH 15 TO 19 AND FROM 22 TO MARCH 26 BETWEEN 9 AM AND 12.30 PM OR BETWEEN 2 PM AND 4.30 PM.

QUESTIONNAIRE SURVEY FORMS SHOULD BE COMPLETED AND RETURNED TO THE TRANSPORT DEPARTMENT BEFORE MARCH 15.

THE SPOKESMAN URGED OWNERS TO PARTICIPATE IN THE SURVEY TO HELP THE DEPARTMENT ASSESS THE OPERATING CONDITIONS OF NEW TERRITORIES TAXIS.

HE SAID THE INFORMATION COLLECTED WOULD BE TREATED CONFIDENTIALLY AND USED FOR STATISTICAL ANALYSIS ONLY.

- - 0 - -

OWNER FINED FOR DEFYING DEMOLITION ORDER

*****

THE BUILDINGS ORDINANCE OFFICE (BOO) OF THE BUILDINGS AND LANDS DEPARTMENT TODAY (SUNDAY) REITERATED THAT FLAT-OWNERS FAILING TO COMPLY WITH DEMOLITION ORDERS ON ILLEGAL STRUCTURES MAY FACE HEAVY FINES.

THE REMINDER FOLLOWS A RECENT COURT CASE IN WHICH A COMPANY WAS FINED $20,000 FOR IGNORING A COURT ORDER TO DEMOLISH AN ILLEGAL STRUCTURE ON THE ROOF-TOP OF A BUILDING IN WAN CHAI.

THE CASE CAME TO LIGHT ON JANUARY 22 LAST YEAR WHEN BOO STAFF, ACTING ON A COMPLAINT, INSPECTED THE ROOF OF 17A MOON STREET, WAN CHAI .

THEY DISCOVERED THAT CERTAIN UNAUTHORISED BUILDING WORKS WERE BEING CARRIED OUT ABOVE A TOP-FLOOR PREMISES OWNED BY THE DEFENDANT, THE CHINA PORT NOMINEES COMPANY LIMITED.

THE COURT HEARD THAT A WARNING LETTER WAS IMMEDIATELY ISSUED BY BOO ADVISING THE OWNER TO STOP THE UNAUTHORISED BUILDING WORKS AND TO REMOVE THEM.

/WHEN THE

SUNDAY, MARCH 7, 1993

WHEN THE ADVICE WAS IGNORED, A DEMOLITION ORDER WAS ISSUED ON JULY 23 LAST YEAR REQUIRING THE OWNER TO REMOVE THE UNAUTHORISED STRUCTURE AND TO REINSTATE THE PART OF THE BUILDING AFFECTED BY SEPTEMBER 22.

THE DEFENDANT WAS TAKEN TO COURT AFTER SEVERAL SUBSEQUENT INSPECTIONS REVEALED THAT THE STATUTORY ORDER HAD NOT YET BEEN COMPLIED WITH. HE PLEADED GUILTY AT EASTERN MAGISTRACY ON FEBRUARY 16 THIS YEAR AND WAS FINED $20,000.

- - 0 - -

DISTRICT ADMINISTRATION HAS SUPPORT OF PEOPLE: SHA

*****

DISTRICT ADMINISTRATION HAS GAINED THE SUPPORT OF THE PEOPLE, COMMUNITY LEADERS AND ORGANISATIONS, THE SECRETARY FOR HOME AFFAIRS, MR MICHAEL SUEN, SAID TODAY (SUNDAY).

SPEAKING AT THE 1OTH INAUGURATION CEREMONY OF THE TSUEN WAN TRADE ASSOCIATION, HE SAID LOCAL COMMERCIAL AND INDUSTRIAL CONCERNS HAD MADE NOTABLE CONTRIBUTIONS TO ITS SUCCESS.

’’MANY LARGE-SCALE DISTRICT ACTIVITIES WERE MADE POSSIBLE WITH THEIR GENEROUS SPONSORSHIP,” HE SAID, ADDING THAT DISTRICT BOARDS MET PART OF THE FUNDING.

MR SUEN ALSO PRAISED THE TSUEN WAN TRADE ASSOCIATION FOR ITS DISTINGUISHED ACHIEVEMENTS IN THEIR SERVICE TO THE COMMUNITY AND IN PROMOTING LOCAL COMMERCIAL AND INDUSTRIAL DEVELOPMENTS.

0 - -

LOCAL ARTS GROUPS GET GRANTS *****

THREE PERFORMING ARTS GROUPS THAT HAVE SUCCESSFULLY OBTAINED BUSINESS SPONSORSHIP HAVE BEEN AWARDED A TOTAL OF $160,000 BY THE COUNCIL FOR THE PERFORMING ARTS (CFPA) UNDER THE MATCHING GRANT SCHEME OVER THE PAST THREE MONTHS.

OF THEM, THE DRAMA GROUP ART SQUARE IS SPONSORED BY EAGLE K I NGDOM INTERNATI ON AL I iTI).

IN THE MUSIC FIELD, CHUEN YING GUZENG ENSEMBLE IS SPONSORED BY YHY FOOD PRODUCTS LTD.

HONG KONG FEST I VAI. FRINGE LTD IN THE COMBINED ARTS FIELD IS SPONSORED BY AGFA-GEVAERT’ (HK) LTD.

/THE CFPA

SUNDAY, MARCH 7, 1993

5

THE CFPA HAS ALSO APPROVED 19 PROJECT GRANTS, AMOUNTING TO $676,040, TO 17 PERFORMING ARTS ORGANISATIONS AND INDIVIDUAL ARTISTS.

IN THE DRAMA FIELD ARE THE NONSENSEMAKERS, ACTORS’ FAMILY, NOVICE, HONG KONG BAPTIST COLLEGE, THE STUDENT UNION OF THE CHINESE UNIVERSITY OF HONG KONG, HONG KONG SHUE YAN COLLEGE, HONG KONG POLYTECHNIC STUDENTS’ UNION, THE PERFORMERS, RED CALF DRAMA CLUB, CHOI HUNG DRAMA ASSOCIATION AND CARLSBERG WANCHAI THEATRE.

MS MUI CHEUK-YIN AND SOUTH ASLT DANCE WORKSHOP ARE IN THE DANCE FIELD.

IN THE MUSIC FIELD ARE HONG KONG COMPOSERS’ GUILD AND HONG KONG MUSIC ALLIANCE FOR STUDENTS OF TERTIARY INSTITUTES.

GRANTS HAVE BEEN AWARDED TO WAH FAI CANTONESE OPERA ASSOCIATION AND BIG FIGHT CANTONESE OPERA SOCIETY IN THE CHINESE OPERA FIELD.

APPLICATIONS FOR PROJECT AND MATCHING GRANTS CAN BE MADE ANY TIME IN THE YEAR.

THE APPLICANT MUST BE AN APPROVED CHARITABLE INSTITUTION OR A REGISTERED NON-PROFIT-MAKING ORGANISATION.

APPLICATIONS SHOULD BE MADE AT LEAST THREE MONTHS BEFORE THE PLANNED PERFORMANCE DATES TO ALLOW TIME FOR ASSESSMENT BY CFPA.

APPLICATION FORMS FOR PROJECT AND MATCHING GRANTS ARE AVAILABLE AT THE CFPA SECRETARIAT ON 40TH FLOOR, REVENUE TOWER, 5 GLOUCESTER ROAD, WAN CHAI, HONG KONG.

ENQUIRIES CAN BE MADE ON TEL 594 5600.

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DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

MONDAY, MARCH 8, 1993

CONTENTS PAGE NO.

BUS FARE INCREASE APPLICATIONS CONSIDERED ..................... 1

CENTRAL/WANCHAI RECLAMATION TENDERS EXTENDED ................... 2

NEW PUBLIC HEALTH PROJECTS .................................... 3

CENTRAL ALLOCATION OF PRIMARY ONE PLACES ....................... 4

HONG KONG HOLDS KEYS TO BUSINESS SUCCESS IN CHINA .............. 5

COMPLAINT OVER IMPORTS OF IN-LINE ROLLER SKATES ................ 6

CURRICULUM DEVELOPMENT COUNCIL DELEGATION VISITS CHINA ......... 7

CLOSURE OF UNAUTHORISED STRUCTURE SOUGHT ....................... 7

500 MUSICIANS TO PERFORM AT ANNUAL GALA ........................ 8

WATER STORAGE FIGURE ........................................... 8

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 9

Received by PRO

on— 1 1 MAR 19»3

MONDAY, MARCH 8, 1993

BUS FARE INCREASE APPLICATIONS CONSIDERED *****

THE TRANSPORT ADVISORY COMMITTEE (TAC) AT ITS MEETING TODAY (MONDAY) CONSIDERED FARE INCREASE APPLICATIONS FROM THE KOWLOON MOTOR BUS COMPANY (KMB) AND CHINA MOTOR BUS COMPANY (CMB).

TAC MEMBERS NOTED THAT THE TWO COMPANIES APPLIED FOR FARE INCREASES BECAUSE OF RISING OPERATION (’OSTS SINCE THE LAST FARE REVISIONS IN MARCH 1991 AND A LOWER THAN EXPECTED PATRONAGE.

KMB’S OPERATING COSTS HAD INCREASED BY 26.7% IN THE PAST TWO YEARS AND WOULD FURTHER INCREASE BY 13.8% AND 16% IN 1993 AND 1994 RESPECTIVELY, DESPITE THE FULL FUEL TAX EXEMPTION.

CMB’S OPERATING COSTS HAD INCREASED BY 17.3% IN THE PAST TWO YEARS AND WOULD GO UP BY 7.1% IN 1993/94.

IN ADDITION, CMB HAD EXPERIENCED A PATRONAGE DECLINE FOR EIGHT CONSECUTIVE YEARS SINCE 1984. THE REDUCTION OF 26 ROUTES FROM THIS SEPTEMBER IS EXPECTED TO CAUSE FURTHER PATRONAGE DROP.

IN CONSIDERING THEIR APPLICATIONS, MEMBERS TOOK INTO ACCOUNT FACTORS SUCH AS THE TWO COMPANIES’ FINANCIAL POSITION, THE PREVAILING ECONOMIC CONDITIONS, PUBLIC EXPECTATION OF A REASONABLE FARE AND THEIR CONCERN ABOUT IMPACT OF THE FARE INCREASE ON INFLATION AND LIVELIHOOD.

THEY ALSO AFFIRMED THE VIEW THAT THE PERMITTED RETURN FOR THE TWO BUS COMPANIES WAS A MAXIMUM RETURN ONLY AND NOT A GUARANTEED RETURN.

ON KMB’S APPLICATION, MEMBERS ALSO CONSIDERED IT’S FARE STRUCTURE BETWEEN AIR-CONDITIONED AND NON AIR-CONDITIONED ROUTES AND ITS CROSS HARBOUR ROUTES.

THEY NOTED THAT KMB PLANNED TO INTRODUCE HALF-FARE FOR PASSENGERS OVER 65 YEARS OLD AS SOON AS POSSIBLE WHICH WAS MADE FEASIBLE BY FINANCIAL SECRETARY’S ANNOUNCEMENT THAT PUBLIC TRANSPORT OPERATORS WOULD BE EXEMPTED FROM ANNUAL LICENCE FEES AND RENTAL IF THEY WERE WILLING TO INTRODUCE OR IMPROVE THE CONCESSIONARY FARE SCHEME.

MEMBERS

WERE ASSURED THAT THE IMPACT OF THE SCHEME ON

REVENUE

WOULD NOT BE PASSED ONTO PASSENGERS AS SHAREHOLDERS WOULD MAKE A CONTRIBUTION.

KMB WOULD CONTINUE ITS SERVICE IMPROVEMENTS BY PROPOSING 32 NEW ROUTES, MAINLY TO NEW DEVELOPMENTS AREAS AND PROVIDING FREQUENCY IMPROVEMENTS TO 82 ROUTES.

IT WOULD ALSO CONTINUE ITS COST ECONOMY MEASURES BY INVESTIGATING WHETHER FURTHER RATIONALISATION COULD BE IMPLEMENTED.

/ON CMB.

MONDAY, MARCH 8, 1993

2

ON CMB, MEMBERS TOOK INTO ACCOUNT THE DISCONTINUATION OF THE SCHEME OF CONTROL IN SEPTEMBER THIS YEAR; THE RELIABILITY AND QUALITY OF ITS SERVICE AND THE IMPACT OF THE REDUCTION OF 26 ROUTES THIS SEPTEMBER.

MEMBERS GENERALLY FELT THAT THERE WAS ROOM FOR IMPROVEMENT FOR CMB IN PROVIDING BETTER QUALITY BUS SERVICE. THEY NOTED THAT CMB PLANNED TO INTRODUCE EIGHT NEW ROUTES, IMPROVE FREQUENCY ON 14 EXISTING ROUTES AND CONVERT FOUR ROUTES TO AIR-CONDITIONED OPERATION BETWEEN 1993 AND 1995.

CMB WILL BE ENCOURAGED TO PURSUE COST ECONOMY MEASURES TO IMPROVE OPERATING EFFICIENCY AND TO REDUCE OPERATING COSTS. THE TRANSPORT DEPARTMENT WILL ALSO CONTINUE TO DISCUSS WITH CMB THE POSSIBILITY OF INTRODUCING A CONCESSIONARY FARE SCHEME IN LINE WITH OTHER FRANCHISED BUS OPERATORS.

HAVING CONSIDERED THE FINANCIAL POSITIONS AND DEVELOPMENT PLANS OF THE TWO BUS COMPANIES, TAC RECOMMENDED LOWER PERCENTAGES OF INCREASES THAN THOSE SOUGHT BY THE COMPANIES.

TAC ALSO RECOMMENDED SOME MODIFICATIONS TO THE PROPOSED FARES STRUCTURES IN ORDER TO HOLD DOWN THE RATES OF INCREASES.

TAC’S RECOMMENDATIONS ON THE FARE INCREASE APPLICATIONS BY THE TWO BUS COMPANIES WILL BE SUBMITTED TO THE EXECUTIVE COUNCIL FOR CONSIDERATION SHORTLY.

AT THE MEETING, MEMBERS WERE ALSO BRIEFED ON THE CMB’S FORWARD PLANNING PROGRAMME FOR 1993/1997, INCLUDING ITS ROUTE DEVELOPMENT PROGRAMME, DEPOT PROGRAMME, PATRONAGE FORECAST AND ITS FINANCIAL IMPLICATIONS FOR THE NEXT FIVE YEARS.

0---------

CENTRAL/WANCHAI RECLAMATION TENDERS EXTENDED

*****

IN RESPONSE TO MEDIA ENQUIRIES, A GOVERNMENT SPOKESMAN SAID TODAY (MONDAY) THAT THE TWO LOWEST TENDERERS FOR THE CENTRAL AND WANCHAI RECLAMATION CONTRACT HAD AGREED TO EXTEND THE VALIDITY OF THEIR TENDERS FOR A FURTHER MONTH FROM MARCH 8 TO APRIL 6 THIS YEAR.

THE RECLAMATION WILL PROVIDE LAND FOR A NUMBER OF PURPOSES WHICH WILL BE OF VALUE TO THE DEVELOPMENT OF HONG KONG.

IT IS PARTLY DESIGNED 'I'O ACCOMMODATE THE AIRPORT RAILWAY’S HONG KONG STATION; BUT IT ALSO PROVIDES NEW LAND FOR EXPANSION OF THE CENTRAL BUSINESS DISTRICT AND LONG-TERM HIGHWAY DEVELOPMENT.

’’THE GOVERNMENT’S COMMITMENT TO THE AIRPORT RAILWAY, WHICH IS PART OF THE AIRPORT CORE PROGRAMME, IS UNDIMINISHED.

’’THIS EXTENSION OF THE TENDER VALIDITY PERIOD WILL GIVE THE GOVERNMENT MORE TIME TO CONSIDER ITS OPTIONS ON THE RECLAMATION, IN LINE WITH ITS STEP-BV-STEP APPROACH TO DECISIONS ON THE AIRPORT CORE PROGRAMME," HE SAID.

--------0-----------

/3 ........

MONDAY, MARCH 8, 1993

- 3

NEW PUBLIC HEALTH PROJECTS

******

THE SETTING UP OE A WELL-WOMAN CLINIC AND A NEW ELDERLY CENTRE ARE AMONG THE NEW PUBLIC HEALTH PROJECTS TO BE INTRODUCED IN THE FINANCIAL YEAR 1993/94, THE DIRECTOR OF HEALTH, DR S H LEE, ANNOUNCED TODAY (MONDAY).

SPEAKING AT A PRESS CONFERENCE, DR LEE SAID FUNDING FOR THESE PROJECTS WAS PROVIDED IN THE 1993/94 BUDGET DELIVERED BY THE FINANCIAL SECRETARY.

HE EXPECTED THAT ABOUT 7,500 WOMEN AGED 45 BENEFIT EVERY YEAR FROM THE WELL-WOMAN (’Ll NIC.

AND ABOVE WOULD

THESE WOMEN ARE MOST VULNERABLE TO DISEASES SUCH AS CANCER OF THE BREAST AND CERVIX WHICH RANK SECOND AND SIXTH IN THE CAUSES OF DEATH DUE TO CANCERS IN THE FEMALE POPULATION, HE SAID.

CURE,"

"WHEN DETECTED EARLY THESE DISEASES HAVE A GOOD CHANCE OF A DR LEE SAID.

TO WELL-WOMAN 1994 .

BE SET UP ON THE FOURTH FLOOR OF LAM TIN POLYCLINIC, THE CLINIC IS EXPECTED TO START FULL-TIME OPERATION BY EARLY

IT IS MADE POSSIBLE BY A GRANT OF $5.7 MILLION FROM THE ROYAL

HONG KONG JOCKEY CLUB AND THE PROVISION OF $0.93 MILLION IN THE GOVERNMENT BUDGET.

THE CLINIC AIMS AT PROVIDING A PACKAGED SERVICE COMPRISING PHYSICAL CHECK-UP LIKE GYNAECOLOGICAL EXAMINATION, HEALTH SCREENING TO DETECT DISEASES PREVALENT IN WOMEN, AND HEALTH EDUCATION AND COUNSELLING, DR LEE SAID.

ON HEALTH SERVICES FOR THE ELDERLY, HE SAID THE BUDGET HAD ALLOCATED $0.71 MILLION FOR THE SETTING UP OF THE FIRST CENTRE FOR THE ELDERLY IN KOWLOON.

"THE CENTRE WILL PROVIDE A PACKAGED SERVICE COMPRISING PHYSICAL CHECK-UP, SCREENING FOR DISEASES LIKE HYPERTENSION, HEART DISEASE AND DIABETES, HEALTH EDUCATION AND PROMOTIVE CARE SERVICES," THE DIRECTOR SAID.

HE NOTED THAT PEOPLE AGED 65 AND OVER NOW CONSTITUTED ABOUT NINE PER CENT OF THE TOTAL POPULATION AND THE FIGURE WAS EXPECTED TO GROW TO 12 PER CENT BY 2000.

TURNING TO DRUG CONTROL, HE SAID THE BUDGET PROVIDED FOR $0.89 MILLION TO FUND ADDITIONAL POSTS TO STRENGTHEN THE DEPARTMENT’S FORENSIC PHARMACY DIVISION.

THIS WOULD ENABLE IT TO STEP UP LICENSING AND LAW ENFORCEMENT ACTION, AND MEET THE TARGET OF "TWO INSPECTIONS PER MEDICINE DEALER A YEAR".

/ON THE ........

MONDAY, MARCH 8, 1993

ON THE FIGHT AGAINST AIDS, DR LEE SAID THE SETTING UP OF A $350 MILLION AIDS FUND SHOWED THE GOVERNMENT’S COMMITMENT TO THE FIGHT, AND THAT THE GOVERNMENT WAS ’’CARING AND COMPASSIONATE IN DEALING WITH ALL THE WIDE-REACHING CONSEQUENCES THAT THIS DREADFUL DISEASE BRINGS”.

"TO KICK OFF OUR RENEWED EFFORTS, A MAJOR PUBLICITY CAMPAIGN WILL BE PERSONALLY LAUNCHED BY THE SECRETARY FOR HEALTH AND WELFARE IN THE ’ENJOY YOURSELF TONIGHT’ SHOW NEXT MONTH,” HE SAID.

THIS WILL BE FOLLOWED BY A SERIES OF EDUCATION AND PUBLICITY ACTIVITIES "TARGETED AT EVERY ONE IN THE COMMUNITY" THROUGHOUT THE YEAR, INCLUDING WORKSHOPS AND TRAINING SESSIONS FOR TEACHERS AND AMBULANCE STAFF.

ON THE INTERNATIONAL FRONT ON AIDS, HONG KONG WILL HOLD THE FIRST MEETING WITH CHINA IN MID-1993 AND WILL HELP THE WORLD HEALTH ORGANISATION HOLD A WORKSHOP IN HONG KONG ON DRUG ABUSE AND AIDS IN AUGUST THIS YEAR.

AS REGARDS THE PERFORMANCE PLEDGE, DR LEE SAID HE INTENDED TO SPEND $9 MILLION TO $10 MILLION IN THE FINANCIAL YEAR STARTING APRIL ON IMPROVING THE LEVEL OF SERVICES AND EXTEND THE PLEDGE TO COVER 20 TO 30 ADDITIONAL CLINICS, BEGINNING WITH PHASE II WHICH WOULD COVER 13 CLINICS IN THE MIDDLE OF THE YEAR.

---------0------------

CENTRAL ALLOCATION OF PRIMARY ONE PLACES ♦ * * ♦ t

ALL CHILDREN WHO HAVE APPLIED FOR A PUBLIC-SECTOR PRIMARY ONE PLACE BUT HAVE NOT SECURED A DISCRETIONARY PLACE WILL BE CENTRALLY ALLOCATED TO A GOVERNMENT OR AIDED PRIMARY SCHOOL FOR THE 1993 SCHOOL YEAR.

THEY WILL RECEIVE A LETTER IN THE NEXT FEW DAYS FROM THE PRIMARY ONE ADMISSION UNIT OF THE EDUCATION DEPARTMENT REQUESTING THEM TO GO TO A SPECIFIED DISTRIBUTION AND COLLECTION CENTRE TO COLLECT A "CHOICE OF SCHOOLS” FORM AND A LIST OF ALL GOVERNMENT AND AIDED PRIMARY SCHOOLS IN THEIR HOME DISTRICT.

THE DOCUMENTS SHOULD BE COLLECTED BETWEEN MARCH 13 (SATURDAY) AND MARCH 15 (MONDAY) FROM 9.30 AM TO 12.30 PM AND 1.30 PM TO 4.30 PM.

COMPLETED FORMS SHOULD BE RETURNED TO THE SAME CENTRE WITHIN THE SAME PERIOD.

ALL DISTRIBUTION AND COLLECTION CENTRES WILL REMAIN OPEN DURING THE SPECIFIED TIME ON SUNDAY (MARCH 14).

PARENTS ARE REMINDED THAT IF THEY HAI) NOT RECEIVED THE LETTER FROM THE DEPARTMENT BY MARCH 13, THEY SHOULD CONTACT THE PRIMARY ONE ADMISSION UNIT ON 572 4383 IMMEDIATELY.

/PARENTS WHO .......

MONDAY, MARCH 8, 1993

5

PARENTS WHO HAVE MOVED HOUSE RECENTLY OR ARE PLANNING TO MOVE HOUSE IN THE NEAR FUTURE MUST INFORM THE PRIMARY ONE ADMISSION UNIT SO THAT ARRANGEMENTS CAN BE MADE TO ALLOCATE A PLACE TO THEIR CHILDREN IN THEIR NEW HOME DISTRICT.

RESULTS OF THE CENTRAL ALLOCATION, WHICH IS SOLELY BASED ON PARENTAL CHOICE, WILL BE RELEASED IN EARLY JUNE.

PARENTS AND MEMBERS OF THE PUBLIC ARE WELCOME TO MAKE USE OF THE EDUCATION DEPARTMENT’S AUTOMATIC' TELEPHONE ENQUIRY SERVICE (891 0088) FOR INFORMATION ON THE PRIMARY ONE CENTRAL ALLOCATION SYSTEM OR OTHER EDUCATIONAL MATTERS.

- 0------------

HONG KONG HOLDS KEYS TO BUSINESS SUCCESS TN CHINA ♦ * * * *

MUCH OF THE CURRENT WISDOM ABOUT HOW TO SUCCEED IN CHINA HAS BEEN ACCUMULATED IN HONG KONG WHOSE ENTREPRENEURS WERE AMONG THE FIRST TO INVEST IN CHINA’S NEWLY OPENED SPECIAL ECONOMIC ZONES, THE SECRETARY FOR TRADE AND INDUSTRY, MR T H CHAU, SAID TODAY (MONDAY).

SPEAKING AT THE HONG KONG POLYTECHNIC MANAGEMENT GRADUATES ASSOCIATION INTERNATIONAL CONFERENCE, MR CHAU SAID HONG KONG ENTREPRENEURS WERE THE LEADING SOURCE OF FOREIGN INVESTMENT IN CHINA, ACCOUNTING FOR MORE THAN HALF OF THE TOTAL.

CITING THE EXAMPLE OF GUANGDONG, HE SAID THE BUSINESS BACK-UP HONG KONG WAS ABLE TO PROVIDE MADE IT THE NATURAL SOURCE FOR THE SERVICES GUANGDONG NEEDED, IN TERMS OF TRADE, SHIPPING, FINANCING, INSURANCE, ACCOUNT 1 NG AND COMMUNI CAT IONS.

THE BUSINESS BACK-UP INCLUDED:

A FINANCIAL MARKET SPANNING THE TIME GAP BETWEEN EUROPE AND NORTH AMERICA;

SOME OF THE REGION’S MOST SOPHISTICATED TELECOMMUNICATIONS INFRASTRUCTURE;

* THE WORLD’S BUSIEST CONTAINER PORT; AND

* A VIBRANT BUSINESS SERVICES SECTOR.

MR CHAU POINTED OUT THAT ECONOMIC RELATION BETWEEN CHINA AND HONG KONG HAD WORKED WELL BECAUSE IT WAS BASED ON COMPLEMENTARITY.

’’HONG KONG CAN OFFER ABUNDANT CAPITAL, 40 YEARS OF EXPERIENCE IN MANAGING LIGHT MANUFACTURING ENTERPRISES AND A NETWORK OF SUPPLIERS AND BUYERS STRETCHING AROUND THE GLOBE.

’’CHINA HAS GREENFIELD INDUSTRIAL SITES AND A LARGE AND DISCIPLINED WORKFORCE AT COSTS WHICH ARE HIGHLY COMPETITIVE.

/’’EACH SIDE...........

MONDAY, MARCH 8, 1993

6

"EACH SIDE HAS CAPITALISED ON ITS ADVANTAGES, WITH LABOUR-INTENSIVE PROCESSING TAKING PLACE IN CHINA AND SOURCING, MARKETING, PACKAGING AND QUALITY MANAGEMENT BEING BASED IN HONG KONG," HE SAID.

MR CHAU NOTED THAT COMPANIES FOLLOWING THIS ROUTE HAD BEEN ABLE TO MAINTAIN THE QUALITY STANDARDS AND FAST RESPONSE TIMES THEIR OVERSEAS BUYERS DEMANDED WHILE PUSHING DOWN THEIR PRODUCTION COSTS.

HE SAID MANY OVERSEAS COMPANIES INTERESTED IN DOING BUSINESS WITH CHINA HAD, FOR THE ABOVE REASON, CHOSEN TO DO SO THROUGH HONG KONG.

"AS ONE OF THE MOST BUS INESS-FRIENDLY CITIES IN ASIA, AND SITUATED RIGHT ON CHINA’S DOORSTEP, HONG KONG IS AN IDEAL PLACE FOR COMPANIES TO SITE THEIR REGIONAL HEADQUARTERS," MR CHAU SAID.

--------0------------

COMPLAINT OVER IMPORTS OF IN-LINE ROLLER SKATES *****

AN U.S. FIRM FILED A COMPLAINT WITH THE U.S. INTERNATIONAL TRADE COMMISSION (ITC) ALLEGING THAT IMPORTS OF CERTAIN IN-LINE ROLLER SKATES HAD INFRINGED ITS PATENTS, ACCORDING TO A COMMERCIAL INFORMATION CIRCULAR PUBLISHED BY THE TRADE DEPARTMENT TODAY (MONDAY).

THE FIRM SOUGHT A GENERAL EXCLUSION ORDER PROHIBITING THE IMPORT OF THE INFRINGING PRODUCTS INTO THE STATES.

A SPOKESMAN FOR THE TRADE DEPARTMENT ADVISED HONG KONG COMPANIES, WHICH HAVE A SUBSTANTIAL FINANCIAL INTEREST TN CONTINUING TO SELL THE SUBJECT PRODUCTS TO THE U.S. AND ARE CONVINCED THAT THEY ARE NOT INFRINGING THE PATENT IN QUESTION, TO CONSIDER INTERVENING.

THE PATENTS INVOLVED REFER TO CLAIMS 1-8 OF U.S. LETTERS PATENT NUMBER 5,171,033 AND CLAIM 5 OF U.S. LETTERS PATENT NUMBER 5,048,848.

A FULL COPY OF THE COMPLAINT IS AVAILABLE FOR PUBLIC REFERENCE IN THE TRADE DEPARTMENT.

UNDER THE U.S. PROCEDURES, A PARTY OTHER THAN THE NAMED RESPONDENTS MAY MAKE A MOTION TO INTERVENE IN THE ITC PROCEEDINGS AFTER AN INVESTIGATION IS INITIATED.

THERE IS NO FORMAL TIME LIMIT FOR FILING SUCH INTERVENTION, BUT UNDUE DELAY THAT IS PREJUDICIAL TO THE PROCEEDINGS MAY RESULT IN DENIAL OF A MOTION TO INTERVENE.

THE TRADE DEPARTMENT HAS BEEN IN TOUCH WITH THE LOCAL COMPANY THAT IS NAMED IN THE COMPLAINT AND WILL PROVIDE IT WITH INFORMATION IN PROCEDURAL ASPECTS.

--------0------------

n....

MONDAY, MARCH 8, 1993

CURRICULUM DEVELOPMENT COUNCIL DELEGATION VISITS CHINA

*****

A 14-MEMBER DELEGATION OF THE CURRICULUM DEVELOPMENT COUNCIL TODAY (MONDAY) LEFT FOR A 1 O-DAY VISIT TO CHINA.

SPEAKING AT THE AIRPORT BEFORE DEPARTURE, THE CHAIRMAN OF THE COUNCIL, MR ANDREW SO, SAID THE DELEGATION WOULD BE EXCHANGING VIEWS AND EXPERIENCES WITH OFFICIALS AND EDUCATORS TN CHINA.

"IN ADDITION TO HOLDING DISCUSSIONS WITH THE MINISTRY OF EDUCATION IN BEIJING AND SHANGHAI, WE WILL ALSO BE VISITING VARIOUS TYPES OF SCHOOLS SUCH AS KINDERGARTENS, PRIMARY AND SECONDARY SSCHOOLS," MR SO SAID.

"THERE WILL ALSO BE OPPORTUNITIES FOR US TO VISIT TERTIARY INSTITUTIONS AND MEET SCHOOL OF EDUCATION TEACHING STAFF," HE SAID.

-----0------

CLOSURE OF UNAUTHORISED STRUCTURE SOUGHT

*****

THE BUILDING AUTHORITY IS SEEKING TO CLOSE AN UNAUTHORISED STRUCTURE ON THE ROOF OF A BUILDING IN MONG KOK SO THAT IT CAN BE DEMOLISHED WITHOUT CAUSING DANGER TO THE OCCUPIERS AND THE PUBLIC.

THE SINGLE-STOREY STRUCTURE IS ON THE ROOF OF KIN WONG MANSION AT 123-127 SAI YEE STREET/39-41 FIFE STREET.

NOTICE OF INTENTION TO APPLY FOR A CLOSURE ORDER UNDER THE BUILDINGS ORDINANCE FROM THE HONG KONG DISTRICT COURT ON MAY 20 WAS POSTED ON THE PREMISES TODAY (MONDAY).

IT IS EXPECTED THAT DEMOLITION WORKS WILL START AS SOON AS THE CLOSURE ORDER IS ISSUED.

--------0-----------

/8 ........

MONDAY, MARCH 8, 1993

- 8 -

500 MUSICIANS TO PERFORM AT ANNUAL GALA

*****

MORE THAN 500 YOUNG MUSICIANS WILL PERFORM AT THE MUSIC OFFICE’S ANNUAL GALA TO BE HELD AT THE HONG KONG CULTURAL CENTRE CONCERT HALL ON SUNDAY (MARCH 14) AT 3 PM.

THE 1993 GALA IS ONE OF THE MAJOR MUSICAL ACTIVITIES ORGANISED BY THE MUSIC OFFICE TO HIGHLIGHT THE ACHIEVEMENTS OF THE TRAINEES WHO PARTICIPATED IN THE INSTRUMENTAL MUSIC TRAINING SCHEME LAST YEAR.

IT WILL ALSO GIVE THE TRAINEES A CHANCE TO PERFORM BEFORE THEIR PARENTS AND THE PUBLIC.

THE MUSIC ADMINISTRATOR, MR BRIAN LAU, THANKED ALL THE TEACHERS AND PARENTS FOR THEIR SUPPORT AND ENCOURAGEMENT THROUGHOUT THE YEARS.

’’THEY WILL SURELY BE PROUD OF THEIR CHILDREN’S ACHIEVEMENTS WHILE WATCHING THEM PERFORM ON THE STAGE,” HE SAID.

BEFORE THE PERFORMANCES BEGIN, THE CHAIRMAN OF THE HONG KONG ACADEMY FOR PERFORMING ARTS, DR HELMUT SOHMEN, WILL OFFICIATE AT A PRESENTATION CEREMONY DURING WHICH OUTSTANDING TRAINEES, ORCHESTRAL, CHOIR AND BAND MEMBERS WILL RECEIVE CERTIFICATES OF MERIT OR AWARD.

TICKETS FOR THE ANNUAL GALA, AT $30 AND $50 EACH, WILL BE AVAILABLE AT ALL URBTIX OUTLETS. ENQUIRIES CAN BE MADE ON 802 0657.

-----0------

WATER STORAGE FIGURE *****

STORAGE IN HONG KONG’S RESERVOIRS AT 9 AM TODAY (MONDAY) STOOD AT 52.6 PER CENT OF CAPACITY OR 308.373 MILLION CUBIC METRES.

THIS TIME LAST YEAR THE RESERVOIRS CONTAINED 193.454 MILLION CUBIC METRES OF WATER, REPRESENTING 33.0 PER CENT OF CAPACITY.

0

/9

MONDAY, MARCH 8, 1993

9

HONG KONG GOVERNMENT EXCHANGE EUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,080

REVERSAL OF LAF +1,070

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -1,090

CLOSING BALANCE IN THE ACCOUNT 1,060

LAF RATE 2.00 BID/4.00 OFFER TWI 114.1 *+0.1* 8.3.93

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS

TERMS YIELD TERM

1 WEEK 2.57 PCT 14 MONTHS

1 MONTH 2.77 PCT 17 MONTHS

3 MONTHS 2.93 PCT 20 MONTHS

6 MONTHS 3.05 PCT 23 MONTHS

12 MONTHS 3.31 PCT

HONG KONG GOVERNMENT BONDS

ISSUE COUPON PRICE YIELD

2405 5.50 102.52 3.36

2408 5.50 101.40 3.40

24 1 1 4.375 101.78 3.56

2502 4.625 101.86 3.78

TOTAL TURNOVER OF BILLS AND BONDS

CLOSED MARCH 8, 1993

- 18,791 MN

--------0

y FRO

1 0 MAR 1993

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

TUESDAY, MARCH 9, 1993

CONTENTS

PAGE NO.

VOLUME AND PRICE MOVEMENTS OF EXTERNAL TRADE TN DECEMBER AND 1992 ....................................................... 1

COMMISSION OF INQUIRY INTO WITNESS PROTECTION GRANTED EXTENSION OF TIME LIMIT ........................................ 6

FULL FUEL DUTY REBATE FOR BUS CO'S .............................. 7

SEMINAR ON TEENAGE SUICIDES ..................................... 7

CHINA FOUND NOT GUILTY TN SULFUR DYES DUMPING ................... 8

LEGCO TO HOLD TWO MOTION DEBATES ................................ 9

EPCOM MEMBERS VISIT WEST KOWLOON RECLAMATION .................... 9

BUS LANES ON CROSS HARBOUR TUNNEL APPROACH ROADS ............... 11

ORAL HEALTH PHOTO CONTEST INVITES ENTRTFS ...................... 11

AUCTION OF LUCKY VEHICLE REGISTRATION MARKS .................... 12

KOWLOON REGIONAL HEALTH OFFICE ON MOVE ......................... 13

HONG KONG GOVERNMENT EXCHANGE FUND TENDER RESULTS .............. 13

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 14

TUESDAY, MARCH 9, 1993

VOLUME AND PRICE MOVEMENTS OF EXTERNAL TRADE IN DECEMBER AND 1992 *»***»

THE VOLUME OF DOMESTIC EXPORTS FOR 1992 RECORDED ONLY A SMALL INCREASE OF 0.3% OVER THAT IN 1991 WHILE THE VOLUME OF RE-EXPORTS INCREASED BY 28%, ACCORDING TO STATISTICS RELEASED TODAY (TUESDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

TAKING DOMESTIC EXPORTS AND RE-EXPORTS TOGETHER, THE VOLUME OF TOTAL EXPORTS INCREASED BY 20%. IMPORTS INCREASED BY 22% IN VOLUME.

THE GROWTH IN THE VOLUME OF TRADE IS DERIVED FROM THE GROWTH IN TRADE VALUES WITH THE EFFECT OF PRICE CHANGES BEING DISCOUNTED.

COMPARING 1992 WITH 1991, THE PRICES OF DOMESTIC EXPORTS AND RE-EXPORTS INCREASED BY 1.0% AND 0.7% RESPECTIVELY. IMPORT PRICES ROSE BY 0.2%.

PRICE CHANGES ARE REFLECTED BY CHANGES IN UNIT VALUE INDICES, WHICH ARE COMPILED BASED ON AVERAGE UNIT VALUES OR, FOR CERTAIN COMMODITIES, BASED ON SPECIFIC PRICE DATA.

THE TERMS OF TRADE INDEX, DEFINED AS THE RATIO OF TOTAL EXPORT PRICE INDEX TO IMPORT PRICE INDEX, INCREASED BY 0.6% IN 1992 AS COMPARED WITH 1991.

COMPARING DECEMBER LAST YEAR WITH THE SAME MONTH IN 1991, THE VOLUME OF DOMESTIC EXPORTS DECREASED BY 3.2% WHILE THAT OF RE-EXPORTS INCREASED BY 23%. THE VOLUME OF TOTAL EXPORTS INCREASED BY 15%. THE VOLUME OF IMPORTS INCREASED BY 19%.

OVER THE SAME PERIOD, THE PRICES OF DOMESTIC EXPORTS INCREASED BY 0.3%, WHILE THOSE OF RE-EXPORTS DECREASED BY 0.2%. IMPORT PRICES DECREASED BY 1.4%.

COMPARING 1992 WITH 1991, THE VOLUME OF DOMESTIC EXPORTS OF ELECTRONIC COMPONENTS INCREASED BY 31% WHILE THAT METAL ORES AND SCRAP INCREASED BY 7.6%.

HOWEVER, CONSIDERABLE DECREASES IN THE VOLUME OF DOMESTIC EXPORTS WERE RECORDED FOR DOMESTIC ELECTRICAL APPLIANCES (-38%); FOOTWEAR (-27%); RADIO OF ALL KINDS (-25%); AND TEXTILE MADE-UPS AND RELATED ARTICLES (-20%).

AS REGARDS DOMESTIC EXPORT PRICES, COMMODITY GROUPS THAT RECORDED SIGNIFICANT INCREASES INCLUDED TEXTILE MADE-UPS AND RELATED ARTICLES (+6.1%); FOOTWEAR (+3.9%); AND CLOTHING (+3.8%).

ON THE OTHER HAND, DECREASES IN DOMESTIC EXPORT PRICES WERE RECORDED FOR ELECTRONIC COMPONENTS (-4.8%); RADIOS OF ALL KINDS (-4.0%); AND METAL ORES AND SCRAP (-3.7%).

THE IMPORT VOLUME OF FOODSTUFFS INCREASED BY 9.0% IN 1992 AS COMPARED WITH 1991.

/SIGNIFICANT INCREASES

TUESDAY, MARCH 9, 1993

2

SIGNIFICANT INCREASES WERE RECORDED FOR THE IMPORT VOLUME OF TEA AND COFFEE; ANIMALS OF THE BOVINE SPECIES; FRUIT; AND MILK, BUTTER, CHEESE AND EGGS.

HOWEVER, CONSIDERABLE DECREASES WERE RECORDED FOR THE IMPORT VOLUME OF SUGAR; AND SOYA BEAN OIL, PEANUT OIL, VEGETABLE OIL AND LARD.

OVER THE SAME PERIOD, THE IMPORT VOLUME OF CONSUMER GOODS INCREASED BY 26%.

COMMODITY ITEMS WITH CONSIDERABLE INCREASES IN IMPORT VOLUME INCLUDED PASSENGER MOTOR CARS AND FOOTWEAR.

THE IMPORT VOLUME OF RAW MATERIALS AND SEMI-MANUFACTURES INCREASED BY 15% IN 1992 AS COMPARED WITH 1991.

SIGNIFICANT INCREASES IN IMPORT VOLUME WERE NOTED FOR WOOL AND OTHER ANIMAL HAIR; BASE METAL (OTHER THAN IRON AND STEEL); AND THERMIONIC CATHODE VALVES AND TUBES, DIODES, TRANSISTORS AND ELECTRICAL MICROCIRCUITS.

HOWEVER, CONSIDERABLE DECREASES WERE RECORDED FOR THE IMPORT VOLUME OF MAN-MADE FIBRES AND SILK FABRICS.

IMPORTS OF FUELS INCREASED BY 26% IN VOLUME IN 1992 AS COMPARED WITH 1991.

AS REGARDS CAPITAL GOODS, THE IMPORT VOLUME INCREASED BY 34% IN 1992 OVER 1991.

NOTABLE INCREASES WERE RECORDED FOR THE IMPORT VOLUME OF CONSTRUCTION MACHINERY; OFFICE MACHINES; OTHER INDUSTRIAL MACHINERY (OTHER THAN TEXTILE MACHINERY AND ELECTRICAL MACHINERY); SCIENTIFIC, MEDICAL, OPTICAL, MEASURING AND CONTROLLING INSTRUMENTS AND APPARATUS; AND TEXTILE MACHINERY.

COMPARING 1992 WITH 1991, THE IMPORT PRICES OF CONSUMER GOODS; CAPITAL GOODS; AND FOODSTUFFS INCREASED BY 2.3%, 2.0% AND 0.4% RESPECTIVELY.

HOWEVER, THE IMPORT PRICES OF FUELS; AND RAW MATERIALS AND SEMI-MANUFACTURES DECREASED BY 8.2% AND 2.4% RESPECTIVELY.

THE VOLUME OF RE-EXPORTS OF ALL END-USE CATEGORIES INCREASED IN 1992 AS COMPARED WITH 1991: CAPITAL GOODS (+48%); FUELS (+28%); CONSUMER GOODS (+27%); RAW MATERIAL AND SEMI-MANUFACTURES (+23%) AND FOODSTUFFS (+8.7%).

OVER THE SAME PERIOD, THE PRICES OF RE-EXPORTS OF CONSUMER GOODS AND CAPITAL GOODS INCREASED BY 2.3% AND 1.4% RESPECTIVELY.

THE RE-EXPORT PRICES OF FUELS; RAW MATERIALS AND SEMIMANUFACTURES; AND FOODSTUFFS DECREASED BY 4.1%, 2.1% AND 0.1% RESPECTIVELY.

/DETAILS OF .......

TUESDAY, MARCH 9, 1993

3

DETAILS OF THE ABOVE STATISTICS ARE PUBLISHED IN THE DECEMBER 1992 ISSUE OF THE "HONG KONG TRADE INDFX NUMBERS",

THE REPORT WILL BE ON SALE AROUND MARCH 12 AT HK$6 A COPY AT THE GOVERNMENT PUBLICATIONS CENTRE ON THE GROUND FLOOR, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL; AND AT THE PUBLICATIONS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT ON THE 19TH FLOOR, WANCHAI TOWER, 12 HARBOUR ROAD, WAN CHAI.

ENQUIRIES ABOUT REGULAR SUBSCRIPTION TO THE REPORT MAY BE DIRECTED TO THE INFORMATION SERVICES DEPARTMENT AT FRENCH MISSION BUILDING, 1 BATTERY PATH, HONG KONG (TEL 842 8802) AND ENQUIRIES ON TRADE INDICES TO THE CENSUS AND STATISTICS DEPARTMENT (TEL 582 4918) .

/TABLE 1 .......

TUESDAY, MARCH 9, 1993

4

Table 1 : Changes in domestic exports by principal commodity group

Commodity group Comparing DEC 1992 with DEC 1991 Comparing JAN-DEC 1992 with JAN-DEC 1991

Value % Unit Value Volume Value % Unit Value Volume

% % % %

Clothing -4.9 4.3 -8.8 2.2 3.8 -1.6

Textile fabrics -6.2 -1.2 -5.0 -1.1 0.5 -1.6

Textile yarn and thread -13.7 -3.1 -10.9 -8.2 -2.6 -5.8

Textile made-ups and related articles 22.3 7.0 14.2 -15.2 6.1 -20.0

Radios of all kinds -32.8 -10.8 -24.7 -28.0 -4.0 -25.0

Electronic components 41.1 -5.6 49.6 25.0 -4.8 31.4

Footwear -27.9 6.7 -32.7 -24.0 3.9 -26.8

Metal manufactures -2.7 0.8 -3.5 3.5 2.8 0.7

Metal ores and scrap 31.6 -2.7 35.4 3.6 -3.7 7.6

Watches and clocks -14.2 -0.7 -13.6 -9.2 -0.3 -8.9

Travel goods, handbags and similar articles 8.5 1.6 6.6 -2.4 1.4 -4.0

Domestic electrical appliances -45.0 -1.7 -44.2 -37.3 0.9 -37.7

ALL COMMODITIES -2.9 0.3 -3.2 1.3 1.0 0.3

/TABLE 2 .......

5

TUESDAY, MARCH 9, 1993

Table 2 : Changes in imports by end-use category

End-use category Comparing DEC 1992 with DEC 1991 Comparing JAN-DEC 1992 with JAN-DEC 1991

Value % Uni t Value Volume Value °6 Unit Value Volume

°6 0. n % %

Foodstuf fs 11.7 -1 .7 13.6 9.4 0.4 9.0

Consumer goods 19.3 0.3 18.9 28.8 2.3 25.9

Raw materials and semi-manufactures 8.1 -4.1 12.7 12.6 -2.4 15.3

Fuels 10R.fi -2.5 114.0 15.4 -8.2 25.7

Capital goods 26. 5 1 .0 25.3 36.7 2.0 34.0

ALL COMMODITIES 17.2 -1.4 lfi.9 22.6 0.2 22.4

Table 3 : Changes in re-exports by end-use category

Comparing DEC with DEC 1992 1991 Comparing with .IAN-DEC 1992 JAN-DEC 1991

End-use category Va 1 ue °A Unit Value Volume % Va 1 ue % Unit Value Volume % %

Foodstuffs 17.2 -2.4 20.1 8.6 -0.1 R.7

Consumer goods 17.2 0.5 16.6 29.6 2.3 26. R

Raw materials and semi-manufactures lfi.9 -2.7 22.2 20.6 -2.1 23.3

Fuel s 73.1 -1 .3 75.4 22.7 -4.1 27.9

Capital goods JR. 5 2.1 45.5 49.fi 1.4 47.7

AT J COMMODITIES 22.5 -0.2 22.8 29.2 0.7 28.2

--------0-----------

Z6 ........

TUESDAY, MARCH 9, 1993

6

COMMISSION OF INQUIRY INTO WITNESS PROTECTION GRANTED EXTENSION OF TIME LIMIT *****

THE GOVERNOR IN COUNCIL HAS TODAY (TUESDAY) GRANTED THE COMMISSION OF INQUIRY INTO WITNESS PROTECTION AN EXTENSION OF THE TIME LIMIT BY FIVE WEEKS TO ENABLE INVESTIGATIONS ON THE FIRST PART OF THE INQUIRY CONCERNING THE SPECIFIC CASE OF R V NGUYEN VAN-BAU TO BE COMPLETED.

A GOVERNMENT SPOKESMAN SAID ACCORDING TO THE ORIGINAL TIME TABLE AS APPROVED BY THE GOVERNOR IN COUNCIL, MR JUSTICE MICHAEL KEMPSTER, WHO HEADED THE COMMISSION, WAS REQUIRED TO SUBMIT A REPORT TO THE GOVERNOR BY TODAY.

"THE ORIGINAL TIME TABLE WAS A ROUGH ESTIMATE OF THE TIME THAT IT WOULD TAKE FOR THE INVESTIGATIONS TO BE COMPLETED. AS THE INQUIRY HAS PROCEEDED, IT HAS BECOME CLEAR THAT THE NUMBER OF WITNESSES TO BE CALLED AND THE VOLUME OF DOCUMENTATION TO BE STUDIED HAVE MADE IT NECESSARY FOR THE COMMISSIONER TO BE GIVEN MORE TIME TO CONSIDER FULLY ALL MATTERS BEFORE HIM.

"THE PUBLIC WOULD EXPECT A COMPREHENSIVE AND THOROUGH INVESTIGATION," THE SPOKESMAN SAID.

PUBLIC HEARINGS FOR THE INQUIRY BEGAN ON FEBRUARY 15 THIS YEAR. AS AT TODAY, 16 WITNESSES HAVE GIVEN EVIDENCE AND ANOTHER 10 WITNESSES ARE EXPECTED TO BE CALLED WITHIN THE NEXT TWO WEEKS.

"IT IS NOT KNOWN AT THIS STAGE WHETHER AN EXTENSION OF TIME FOR THE FIRST PART OF THE INQUIRY WILL HAVE AN EFFECT ON THE SECOND PART OF THE INQUIRY BUT AN ANNOUNCEMENT WILL BE MADE AS AND WHEN A FURTHER EXTENSION OF TIME IS REQUIRED BY THE COMMISSION TO COMPLETE THE ENTIRE INVESTIGATION," THE SPOKESMAN ADDED.

MR JUSTICE KEMPSTER WAS APPOINTED IN JANUARY THIS YEAR TO CONDUCT AN INQUIRY INTO THE CIRCUMSTANCES LEADING TO THE DECISION BY THE PROSECUTION TO OFFER NO EVIDENCE IN A MURDER TRIAL.

HIS SPECIFIC TERMS OF REFERENCE ARE:

(A) TO INQUIRE INTO THE CIRCUMSTANCES LEADING TO THE DECISION TO OFFER NO EVIDENCE IN THE CASE OF R V NGUYEN VAN-BAU (HIGH COURT CRIMINAL CASE NO. 291 OF 1991) AND, IN PARTICULAR -

(I) TO INQUIRE WHY, INSTEAD OF DECIDING TO OFFER NO EVIDENCE, THE PROSECUTION DID NOT ENTER A NOLLE PROSEQUI OR DID NOT MAKE FURTHER ATTEMPTS TO ADJOURN THE CASE;

(II) TO INQUIRE INTO THE ADEQUACY OR OTHERWISE OF THE WITNESS PROTECTION ARRANGEMENTS MADE OR OFFERED TO THE WITNESS BUI VAN-XUAN AND, IF APPROPRIATE, TO DESCRIBE OTHER ARRANGEMENTS THAT MIGHT REASONABLY HAVE BEEN MADE OR OFFERED TO HIM; AND

(B) TO INQUIRE .......

TUESDAY, MARCH 9, 1993

7

(B) TO INQUIRE INTO THE ADEQUACY OR OTHERWISE OF EXISTING ARRANGEMENTS FOR THE PROTECTION OF PROSECUTION WITNESS AND, IF APPROPRIATE, TO MAKE RECOMMENDATIONS AS TO HOW SUCH ARRANGEMENTS SHOULD BE IMPROVED.

ACCORDING TO THE ORIGINAL TIMETABLE, THE COMMISSION IS REQUIRED TO REPORT TO THE GOVERNOR ON THE MATTERS SET OUT IN (A)(1) &

(II) BY TODAY.

-----0-------

FULL FUEL DUTY REBATE FOR BUS CO'S

*****

IN ANSWER TO PRESS ENQUIRIES, A GOVERNMENT SPOKESMAN SAID TODAY (TUESDAY) ALL FRANCHISED BUS COMPANIES WOULD CONTINUE TO ENJOY FULL REBATE ''F DUTY PAID ON FUEL IN 1993/94.

AS A RESULT. THE 9.5 PER CENT INCREASE IN DUTY PROPOSED IN THE BUDGET WILL NOT HAVE ANY EFFECT ON THEIR OPERATING COSTS.

IN CONSIDERING THE APPLICATIONS FOR FARE INCREASES BY CMB AND KMB YESTERDAY, THE TRANSPORT ADVISORY COMMITTEE TOOK THIS FACTOR FULLY INTO ACCOUNT. THE SPOKESMAN SAID.

------0-------

SEMINAR ON TEENAGE SUICIDES

*****

THE COMMISSION ON YOUTH IS TO ORGANISE A SEMINAR ON TEENAGE SUICIDE PROBLEM THIS SATURDAY (MARCH 13).

THE HALF-DAY SEMINAR, WHICH AIMS TO SHED MORE LIGHT ON THE RECENT SPATE OF SUCH SUICIDE, WILL FOCUS ON THE ROLE OF THE MASS MEDIA IN COUNTERING THE PROBLEM AND WAYS OF PROMOTING A POSITIVE ATTITUDE TOWARDS LIFE AMONG YOUTHS.

MORE THAN 100 MEDIA PERSONNEL, ACADEMICS, AND REPRESENTATIVES FROM YOUTH ORGANISATIONS, GOVERNMENT DEPARTMENTS, ADVISORY COMMITTEES AND TEACHERS AND PARENTS ASSOCIATIONS AS WELL AS YOUTHS WILL ATTEND.

THE CHAIRMAN OF THE COMMISSION, MR ERIC LI, WILL GIVE AN OPENING SPEECH TO BE FOLLOWED BY PANEL AND GROUP DISCUSSIONS.

/GUEST SPEAKERS

TUESDAY, MARCH 9, 1993

8

GUEST SPEAKERS WILL INCLUDE LEGISLATIVE COUNCIL MEMBER EMILY LAU; CHAIRMAN OF THE HONG KONG JOURNALISTS ASSOCIATION, MS DAISY LI YUET-WAH; CHAIRMAN OF THE HONG KONG NEWS EXECUTIVE ASSOCIATION, MR YEUNG KAM-KUEN; DIRECTOR OF PUBLICATION OF THE BREAKTHROUGH PUBLISHERS, MR NG SZE-YUEN; THE EXECUTIVE PRODUCER OF THE ENRICHMENT DEPARTMENT (CHILDREN AND YOUTH GROUP) OF THE TELEVISION BROADCASTS LTD, MR MARK LEUNG; AND A PARENT.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE SEMINAR THIS SATURDAY (MARCH 13) AT 9 AM, ROOM 204, SECOND FLOOR, CHINESE YMCA HONG KONG CENTRE, 4 HARBOUR ROAD, WAN CHAI, HONG KONG.

------o-------

CHINA FOUND NOT GUILTY IN SULFUR DYES DUMPING *****

THE U.S. INTERNATIONAL TRADE COMMISSION (ITC) FOUND IN AN ANTIDUMPING INVESTIGATION THAT SULFUR DYES IMPORTS FROM CHINA HAD NOT MATERIALLY INJURED ITS DOMESTIC INDUSTRY.

THE SUSPENSION OF LIQUIDATION OF THE PRODUCTS WILL BE TERMINATED IN DUE COURSE.

HOWEVER, THE TRADE DEPARTMENT CAUTIONED TODAY (TUESDAY) THAT IT WAS POSSIBLE THAT THE PETITIONER OF THE CASE MIGHT FILE AN APPEAL WITH THE U.S. COURT OF INTERNATIONAL TRADE CHALLENGING ITC’S NEGATIVE INJURY DETERMINATION.

"THE DEPARTMENT WILL CONTINUE TO MONITOR THE DEVELOPMENTS AND KEEP LOCAL TRADERS INFORMED," A SPOKESMAN FOR THE DEPARTMENT SAID.

MEANWHILE, THE U.S. DEPARTMENT OF COMMERCE ANNOUNCED ITS PRELIMINARY DETERMINATION THAT CERTAIN COMPACT DUCTILE IRON WATERWORKS FITTINGS FROM CHINA WERE BEING, OR WERE LIKELY TO BE, SOLD IN THE U.S. AT LESS THAN FAIR VALUE.

THE U.S. CUSTOMS SERVICE SHALL REQUIRE A CASH DEPOSIT OR A BOND EQUAL TO THE ESTIMATED MARGIN AMOUNT OF 127.38 PER CENT BY WHICH THE FOREIGN MARKED VALUE OF THE SUBJECT MERCHANDISE EXCEEDS THE U.S. PRICE.

THE SUSPENSION OF LIQUIDATION WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE.

------o-------

/9 ........

TUESDAY, MARCH 9, 1993

- 9

LEGCO TO HOLD TWO MOTION DEBATES *****

THE LEGISLATIVE COUNCIL WILL DEBATE A MOTION ON POLITICAL APPOINTMENT OF PRINCIPAL GOVERNMENT OFFICIALS AT ITS MEETING TOMORROW (WEDNESDAY).

THE MOTION IS PROPOSED BY THE HON ANDREW WONG.

THE HON EMILY LAU WILL MOVE ANOTHER MOTION ON NATIONALITY OF ETHNIC MINORITY.

THE HON MOSES CHENG WILL RAISE AN ADJOURNMENT DEBATE ON WIFE ABUSE.

MEMBERS WILL ASK A TOTAL OF 19 QUESTIONS AND CONSIDER THREE BILLS AT THE MEETING.

DEBATES ON THE BILLS - PARENT AND CHILD BILL, TRADING FUNDS BILL AND AUDIT (AMENDMENT) BILL 1993 - WILL BE RESUMED. THEY WILL GO THROUGH THE COMMITTEE STAGE AND BE GIVEN A THIRD READING.

IN ADDITION, THE SECRETARY FOR THE TREASURY WILL MOVE A MOTION UNDER PUBLIC FINANCE ORDINANCE. THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS WILL ALSO MOVE A MOTION UNDER MAGISTRATES ORDINANCE.

THE SECRETARY FOR MONETARY AFFAIRS WILL PRESENT THE SECURITIES AND FUTURES COMMISSION’S APPROVED ESTIMATES OF INCOME AND EXPENDITURE FOR THE FINANCIAL YEAR 1993/94.

MEMBERS OF THE PUBLIC ARE WELCOME TO OBSERVE THE PROCEEDINGS OF THE LEGISLATIVE COUNCIL SITTING. THEY MAY RESERVE SEATS IN THE PUBLIC GALLERY BY TELEPHONING 869 9492.

-----0-------

EPCOM MEMBERS VISIT WEST KOWLOON RECLAMATION

*****

MEMBERS OF THE ENVIRONMENTAL POLLUTION ADVISORY COMMITTEE (EPCOM) VISITED THE SITE OF THE WEST KOWLOON RECLAMATION TODAY (TUESDAY) TO SEE FOR THEMSELVES THE ENVIRONMENTAL IMPACT OF THE RECLAMATION PROJECTS AND THE GOVERNMENT’S MEASURES TO MITIGATE ANY EFFECTS.

LED BY THE CHAIRMAN OF EPCOM, PROFESSOR WANG GUNGWU, MEMBERS FIRST VISITED THE NEW AIRPORT PROJECTS CO-ORDINATION OFFICE (NAPCO) IN SHUT ON CENTRE AND WERE WELCOMED BY THE DEPUTY DIRECTOR OF NAPCO, MR CLINTON LEEKS.

MEMBERS WERE BRIEFED ON THE ENGINEERING ASPECTS OF THE RECLAMATION AS WELL AS DETAILS OF THE MONITORING WORK WHICH IS BEING UNDERTAKEN IN WEST KOWLOON BY THE ENVIRONMENTAL PROJECT OFFICE (BNPO).

/THEY WERE ........

TUESDAY, MARCH 9, 1993

10

THEY WERE INFORMED THAT ENPO, WHICH WAS SET UP IN AUGUST LAST YEAR AND MANAGED BY THE ENVIRONMENTAL PROTECTION DEPARTMENT (EPD), IS A JOINT VENTURE BETWEEN CONSULTANTS IN ENVIRONMENTAL SCIENCES (ASIA) LTD AND BINNIE CONSULTANTS.

ENPO CONDUCTS ENVIRONMENTAL MONITORING AND AUDITING OF THE WEST KOWLOON PROJECT AREA, IDENTIFIES POLLUTION PROBLEMS ASSOCIATED WITH THE RECLAMATION AND PROVIDES ADVICE ON WAYS TO REMEDY THESE PROBLEMS.

IT ALSO INVESTIGATES COMPLAINTS RECEIVED THROUGH THE EPD POLLUTION HOTLINE AND REPORTS MONTHLY TO EPD, NAPCO AND THE URBAN AREA DEVELOPMENT OFFICE (UADO).

MEMBERS THEN TRAVELLED TO WEST KOWLOON RECLAMATION ON A MARINE LAUNCH. THEY PASSED THROUGH THE OLD AND NEW YAU MA TEI TYPHOON SHELTERS AND OBERSVED THE WATER QUALITY MONITORING WORK BEING CONDUCTED AT ONE OF THE MANY WATER MONITORING STATIONS LOCATED THROUGHOUT THE PROJECT AREA.

THEY WERE INFORMED THAT THE WATER QUALITY NEAR STONECUTTERS ISLAND HAD IMPROVED SINCE THE COMMISSIONING OF A NEW SEWERAGE SCHEME WHICH REDUCED POLLUTION INPUTS FROM THE WEST KOWLOON HINTERLAND BY 70 PER CENT.

SEVERAL REMEDIAL PROPOSALS THAT WILL FURTHER IMPROVE THE WATER QUALITY THERE ARE BEING CONSIDERED.

THE LAUNCH ALSO TOOK MEMBERS TO THE NORTHERN AREA OF THE RECLAMATION NEAR MEI FOO SUN CHUEN WHERE MEMBERS WERE BRIEFED ON THE AIR AND NOISE MONITORING WORK.

THEY WERE INFORMED THAT AIR QUALITY MONITORING IN THIS AREA HAD NOT RECORDED A DUST PROBLEM EXCEEDING REGULATORY LIMITS.

THE TEMPORARY SAND PILE IN FRONT OF LAI CHI KOK IS BEING REDUCED TO 3.5 METRES IN HEIGHT AND THAT THIS STOCKPILE WILL BE PROGRESSIVELY REMOVED BY THE END OF MAY.

AFTER THE VISIT, PROFESSOR WANG SAID HE WAS PLEASED TO SEE THAT THE GOVERNMENT HAD NOT NEGLECTED THE ENVIRONMENTAL IMPACT OF THE LARGE NUMBER OF ENGINEERING PROJECTS BEING CONDUCTED NEAR TO THE DENSELY POPULATED AREA IN WEST KOWLOON.

"ALTHOUGH ENVIRONMENTAL NUISANCES SOMETIMES CANNOT BE AVOIDED, IT IS IMPORTANT THAT CLOSE MONITORING AND ADEQUATE MITIGATING AND REMEDIAL MEASURES BE TAKEN EXPEDITIOUSLY," PROFESSOR WANG SAID.

EPCOM MEMBERS ALSO ASKED THAT REPORT OF THE WORK OF ENPO BE SUBMITTED TO THE COMMITTEE ON A REGULAR BASIS.

0 --------

/Il ........

TUESDAY, MARCH 9, 1993

11

BUS LANES ON CROSS HARBOUR TUNNEL

*****

APPROACH ROADS

THE TRANSPORT DEPARTMENT ANNOUNCED TODAY (TUESDAY) THAT TO IMPROVE THE EFFICIENCY OF CROSS-HARBOUR BUS OPERATION, THE FOLLOWING BUS LANES WILL BE INTRODUCED ON TRIAL ON THE APPROACH ROADS LEADING TO THE KOWLOON TOLL BOOTH PLAZA OF CROSS HARBOUR TUNNEL FROM 7 AM ON THURSDAY:

1) THE EXISTING BUS LANE, EFFECTIVE 7 AM - 10 AM DAILY EXCEPT SUNDAYS AND PUBLIC HOLIDAYS, ON THE NEARSIDE LANE OF THE APPROACH ROAD AT HUNG HOM INTERCHANGE LEADING FROM CHATHAM ROAD SOUTH EASTBOUND TO PRINCESS MARGARET ROAD FLYOVER TO BE EXTENDED SOUTHWARD BY ABOUT 30 METRES; AND

2} THE NEARSIDE SECTION OF HONG CHONG ROAD MEASURING ABOUT 67 METRES FROM ITS BIFURCATION POINT WITH SALISBURY ROAD TO THE ADVERTISING STAND TO BE DESIGNATED A BUS LANE 24 HOURS DAILY.

MOTORISTS FROM CHATHAM ROAD SOUTH AND PRINCESS MARGARET ROAD ARE ADVISED TO CHOOSE THE RIGHT LANE EARLY FOR TSIM SHA TSUI, KOWLOON-CANTON RAILWAY KOWLOON STATION OR CROSS HARBOUR TUNNEL.

DRIVERS OF ALL MOTOR VEHICLES, EXCEPT BUSES AND THOSE WITH PERMITS ISSUED BY THE COMMISSIONER FOR TRANSPORT, WILL BE PROHIBITED FROM ENTERING THE BUS LANE DURING SPECIFIED PERIOD.

APPROPRIATE TRAFFIC SIGNS AND ROAD MARKINGS WILL BE INTRODUCED. THE MEASURES WILL BECOME PERMANENT IF IT PROVES TO BE EFFECTIVE.

-----0-------

ORAL HEALTH PHOTO CONTEST INVITES ENTRIES

*****

LOCAL RESIDENTS ARE INVITED TO ENTER A PHOTO CONTEST THAT AIMS TO AROUSE PUBLIC AWARENESS OF ORAL HEALTH IN PRE-SCHOOL CHILDREN.

THE CONTEST IS ORGANISED BY THE ORAL HEALTH EDUCATION UNIT OF THE DEPARTMENT OF HEALTH TO SUPPORT A THREE-YEAR TERRITORY-WIDF EDUCATION PROGRAMME.

THERE WILL BE THREE PRIZES COMPRISING A TRAVELLING COUPON VALUED AT $10,000, $5,000 AND $3,000 RESPECTIVELY, AND A TROPHY.

ANOTHER 17 PRIZES OF CAMERAS WILL BE OFFERED TO OUTSTANDING

WINNING ENTRIES WILL BE PUT ON DISPLAY AT A PRIZE-PRESENTATION CEREMONY TO RE HELD ON APRIL 17.

DEADLINE FOR ENTRY IS MARCH 29 (MONDAY). JUDGING WILL BE HELD ON APRIL 6.

/APPLICATION FORMS .......

12

TUESDAY, MARCH 9, 1993

APPLICATION FORMS ARE NOW AVAILABLE AT:

* ALL DISTRICT OFFICES;

* ALL BRANCH OFFICES OF FOTOMAX (FAR EAST) LIMITED; AND

♦ THE ORAL HEALTH EDUCATION UNIT OF THE DEPARTMENT OF HEALTH AT 147J ARGYLE STREET, FOURTH FLOOR, ARGYLE STREET JOCKEY CLUB SCHOOL DENTAL CLINIC, KOWLOON.

FURTHER ENQUIRIES CAN BE MADE TO MISS CHUNG OF THE ORAL HEALTH EDUCATION UNIT ON TEL 715 8050.

THE CONTEST IS SPONSORED BY THE FOTOMAX (FAR EAST) LIMITED AND KODAK (FAR EAST) LIMITED.

-----0------

AUCTION OF LUCKY VEHICLE REGISTRATION MARKS

*****

THE TRANSPORT DEPARTMENT WILL HOLD ANOTHER AUCTION OF LUCKY VEHICLE REGISTRATION MARKS ON SATURDAY AT 9.30 AM AT THE CITY HALL RECITAL HALL.

A TOTAL OF 50 LUCKY VEHICLE REGISTRATION MARKS WILL BE AVAILABLE FOR BIDDING. THEY ARE:

FC2668 FB7880 FA228 FB316 FB770

FC120 FC2028 FB882 FC978 FC207

♦FF898 ♦DS909 ♦ BY10 ♦AT888 ♦FF3311

FC21 1 FB638 FC6686 AA3418 FC4363

FC880 FC328 FB9989 FB9929 FC172

BB6232 DJ1288 FA346 EC712 FB4278

FB9888 FB2823 CF226 FC2232 FC9010

♦ FC83 ♦ 7715 ♦FH636 ♦AR44OO ♦FH747

EU132 FC1238 FC987 FC608 FB6174

FB9139 FB3398 FC612 FB257 FB548

* SPECIAL VEHICLE REGISTRATION MARK (NOT TRANSFERABLE)

SUCCESSFUL BIDDERS MUST PAY BY CHEQUE IMMEDIATELY AFTER THE BIDDING.

A TRANSPORT DEPARTMENT SPOKESMAN REMINDED BIDDERS THAT THE VEHICLE REGISTRATION MARK WOULD BF ASSIGNED ONLY TO A VEHICLE REGISTERED IN THE NAME OF THE SUCCESSFUL BIDDER WITHIN 12 MONTHS OF THE AUCTION.

THE CERTIFICATE OF INCORPORATION MUST BE PRODUCED IMMEDIATELY AFTER THE AUCTION IF THE VEHICLE REGISTRATION MARK IS TO BE REGISTERED UNDER THE NAME OF BODY CORPORATE.

/PROCEEDS OF .......

TUESDAY, MARCH 9, 1993

13

PROCEEDS OF THE AUCTION, AFTER DEDUCTION OF EXPENSES INCURRED, WILL AS USUAL TO GO THE THE GOVERNMENT LOTTERIES FUND.

THE COMING AUCTION WILL BE THE 190TH ORGANISED BY THE TRANSPORT DEPARTMENT SINCE MAY 1973.

------0-------

KOWLOON REGIONAL HEALTH OFFICE ON MOVE

* ♦ » ♦ »

THE KOWLOON REGIONAL OFFICE OF THE DEPARTMENT OF HEALTH WILL MOVE TO THE 12TH, 13TH AND 14TH FLOORS OF GOLDEN GATE COMMERCIAL BUILDING IN TSIM SHA TSUI ON FRIDAY (MARCH 12).

THE TELEPHONE NUMBERS OF THE OFFICE WILL REMAIN UNCHANGED AT 739 3855 AND 739 5495.

AT PRESENT, THE OFFICE IS HOUSED ON THE NINTH AND 13TH FLOORS OF THE BUILDING.

------0-------

HONG KONG GOVERNMENT EXCHANGE FUND

TENDER RESULTS

* t » » *

TENDER DATE

PAPER ON OFFER

ISSUE NUMBER

AMOUNT APPLIED

AMOUNT ALLOTTED AVERAGE YIELD ACCEPTED HIGHEST YIELD ACCEPTED PRO RATA RATIO

AVERAGE TENDER YIELD

9 MAR 93

EF BILLS

Q310

HK$5,260 MN

HK$1,000 MN 2.97 PCT 2.97 PCT ABOUT 71 PCT 3.01 PCT

/HONG KONG .......

TUESDAY, MARCH 9, 1993

- 14 -

HONG KONG GOVERNMENT EXCHANGE FUND

TENDERS TO BE HELD IN THE WEEK BEGINNING 15 MARCH 1993 -

TENDER DATE 16 MAR 93 16 MAR 93

PAPER ON OFFER EF BILLS EF BILLS

ISSUE NUMBER Q311 H360

ISSUE DATE 17 MAR 93 17 MAR 93

MATURITY DATE 16 JUNE 93 15 SEPT 93

TENOR 91 DAYS 182 DAYS

AMOUNT ON OFFER HK$1,000 + 200 MN HK$400 + 80 MN

----------0-------------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS * * * * *

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,060

REVERSAL OF LAF +1,090

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -430

CLOSING BALANCE IN THE ACCOUNT 1,720

LAF RATE 2.00 BID/4.00 OFFER TWI 114.0 *-0.1» 9.3.1993

/HONG KONG ........

TUESDAY, MARCH 9, 1993

15

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.53 PCT 14 MONTHS 2405 5.50 102.45 3.41

1 MONTH 2.64 PCT 17 MONTHS 2408 5.50 101.35 3.44

3 MONTHS 2.91 PCT 20 MONTHS 2411 4.375 101.72 3.59

6 MONTHS 3.02 PCT 23 MONTHS 2502 4.625 101.81 3.81

12 MONTHS 3.27 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 10,617MN

CLOSED 9 MARCH 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

WEDNESDAY, MARCH 10, 1993

CONTENTS PAGE NO.

PROPOSALS MUST HAVE SUPPORT OF HK PEOPLE ........................ 1

GOVT RESPONSE TO CRITICISMS ON HANDLING OF HKUST PROJECT .... 2

GOVERNOR VISITS TUEN MUN ........................................ 3

$100 MILLION GRANT TO OLI PROPOSED .............................. 4

ITDC MEETS ...................................................... 5

NEW MEMBERS TO EXCHANGE FUND ADVISORY COMMITTEE ................. 5

TWO SITES TO LET ................................................ 7

37 SECONDARY SCHOOLS JOIN EXHIBITION ............................ 8

SALT WATER CUTS IN KOWLOON EAST ................................. 8

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 9

WEDNESDAY, MARCH 10, 1993

1

PROPOSALS MUST HAVE SUPPORT OF HK PEOPLE

*****

WHAT HONG KONG WANTS AND MUST WORK FOR ARE POLITICAL DEVELOPMENT PROPOSALS WHICH HAVE THE SUPPORT OF THE HEARTS AND MINDS OF ALL ITS PEOPLE, THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN SAID THIS (WEDNESDAY) AFTERNOON.

SPEAKING TO REPORTERS AFTER VISITING THE TUEN MUN DISTRICT, THE GOVERNOR SAID THAT MUST BE AN OVERWHELMING OBJECTIVE FOR EVERYONE IF HONG KONG WAS TO SEE THE STABILITY AND PROSPERITY CONTINUE INTO THE INDEFINITE FUTURE.

"IF WE DO NOT HAVE TALKS, THEN WE PROCEED TO SEE OUR PROPOSALS MOVE THROUGH THE LEGISLATIVE COUNCIL. THEY MAY BE AMENDED. THEY MAY NOT," HE SAID.

"IF WE DO HAVE TALKS, J WOULD HOPE THAT THEY WOULD LEAD TO AN ACCEPTABLE CONCLUSION FOR BRITAIN, CHINA AND HONG KONG."

WHEN ASKED ABOUT THE COMMENTS THAT LEGCO DECISION HAD TO BE COMPATIBLE WITH BRITISH INTERNATIONAL OBLIGATIONS, THE GOVERNOR SAID:

"I REPEAT WHAT I SAID LAST WEEK THAT IF WE WERE TO HAVE TALKS WITH CHINA, WHICH I WOULD VERY MUCH LIKE AND WHICH WE HAVE SAID WE WOULD HAVE WITHOUT ANY PRECONDITIONS, AND IF THOSE TALKS WERE TO PRODUCE A SATISFACTORY SETTLEMENT WHICH I COULD RECOMMEND TO THE LEGISLATIVE COUNCIL, I DON’T IMAGINE THAT I WOULD BE INA POSITION IN WHICH I WAS RECOMMENDING SOMETHING THAT THE LEGISLATIVE COUNCIL WOULD NOT FIND ACCEPTABLE."

IN RESPONSE TO A QUESTION ABOUT REPRESENTATION OF HONG KONG IN TALKS, THE GOVERNOR SAID THERE WERE OFFICIALS OF THE HONG KONG GOVERNMENT WHO WERE FULL-TIME MEMBERS OF THE BRITISH TEAM IN THE JOINT LIAISON GROUP AND HAD MADE A CONSIDERABLE CONTRIBUTION TO THE BRITISH TEAM.

"NO ONE COULD POSSIBLY WANT TO TRY TO CUT HONG KONG OUT OF ANY CONSIDERATIONS IN DISCUSSIONS WHICH WE ALL ACCEPT ARE BETWEEN SOVEREIGN POWERS, BETWEEN THE SOVEREIGN POWER OF BRITAIN AND THE SOVEREIGN POWER OF CHINA," HE SAID.

ON SOME OF THE PROBLEMS THAT ARE OF CONCERN TO THE TUEN MUN PEOPLE, MR PATTEN SAID: "PEOPLE ARE EXTREMELY CONCERNED ABOUT THE DEVELOPMENT OF TRANSPORT LINKS IN THE NEW TERRITORIES. THEY’RE WORRIED ABOUT THE IMPACT OF TRAFFIC’ CONGESTION ON THE ENVIRONMENT.

"THE FINANCIAL SECRETARY WAS ADDRESSING THAT PROBLEM IN SOME OF THE ANNOUNCEMENTS THAT HE MADE IN HIS BUDGET LAST WEEK, FOR EXAMPLE, ON ROUTE THREE AND ON THE TUEN MUN HIGHWAY.

"BUT, WE’VE OBVIOUSLY BEEN LOOKING FORWARD TO THE COMMENTS BY THE DISTRICT BOARD AND BY THE COMMUNITY ON THE RAILWAY STRATEGY DOCUMENT WHEN IT IS PUBLISHED SHORTLY."

/ON THE ........

WEDNESDAY, MARCH 10, 1993

2

ON THE PROPOSAL FOR A TEMPORARY CONTAINER TERMINAL IN AREA 16, THE GOVERNOR SAID THE GOVERNMENT WOULD BE LOOKING AT THE ENVIRONMENTAL AND TRAFFIC IMPACT OF THAT PROPOSAL, TAKING FULL ACCOUNT OF THE ARGUMENTS AND CONCERNS EXPRESSED BEFORE COMING TO ANY DECISION.

"THERE IS NO FINAL DECISION BUT WE’LL WANT TO HAVE A THOROUGH LOOK AT WHAT LOCAL RESIDENTS HAVE BEEN SAYING TO US," HE SAID.

COMMENTING ON THE RECENT SPATE OF SEXUAL CRIMES IN TUEN MUN, THE GOVERNOR SAID HONG KONG HAD A FAR LOWER LEVEL OF CRIMES AND VIOLENT CRIMES THAN THOSE OF OTHER COMMUNITIES IN THE WORLD.

"BUT, ANY LEVEL OF CRIME IS UNACCEPTABLE. I UNDERSTAND THE CONCERN EXPRESSED BY LOCAL WOMEN, BY LOCAL MOTHERS AND WILL BE TALKING TO THE POLICE ABOUT WAYS IN WHICH WE CAN TRY TO TACKLE THIS RASH OF SEXUAL CRIMES WHICH HAVE CAUSED SO MUCH WORRY LOCALLY," HE SAID.

"THE BEST WAY OF DEALING WITH CRIMES LIKE THESE IS BY CATCHING THOSE RESPONSIBLE AND THE BEST WAY OF CATCHING THOSE RESPONSIBLE IS BY SUPPORTING OUR EXCELLENT POLICE AND BY SEEING THAT THERE ARE MORE POLICE ACTUALLY ON THE STREET."

0 --------

GOVT RESPONSE TO CRITICISMS ON HANDLING OF HKUST PROJECT » » » » »

IN RESPONSE TO PRESS ENQUIRIES, A GOVERNMENT SPOKESMAN SAID TODAY (WEDNESDAY) THAT THE ADMINISTRATION WAS GRATEFUL TO THE PUBLIC ACCOUNTS COMMITTEE (PAC) FOR THEIR REPORT ON THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY (HKUST) PROJECT AND WOULD BE RESPONDING IN DETAIL IN THE GOVERNMENT MINUTE TO BE TABLED IN THE LEGISLATIVE COUNCIL.

"THE ADMINISTRATION ACCEPTED THE PAC RECOMMENDATIONS REGARDING TIGHTER FINANCIAL CONTROL ON JOINT FUNDING PROJECTS," THE SPOKESMAN SAID, "ALTHOUGH IT DID NOT BELIEVE THAT THE INCREASE IN ESTIMATE IN THE CASE OF THE HKUST PROJECT COULD HAVE BEEN AVOIDED OR SIGNIFICANTLY REDUCED, BEARING IN MIND THAT -

* THE ORIGINAL ESTIMATE WAS NO MORE THAN A PRELIMINARY ROUGH ORDER OR COST, DRAWN UP IN THE ABSENCE OF A DETAILED DESIGN AND THE NECESSARY ACADEMIC INPUT; AND

* COST ESCALATION WAS PARTICULARLY HIGH DURING THE CONSTRUCTION PERIOD."

WHEN ASKED TO COMMENT ON THE SELECTION OF DESIGN, THE SPOKESMAN SAID IT WAS A MATTER FOR THE PLANNING COMMITTEE OF HKUST.

/"WE OUGHT .......

WEDNESDAY, MARCH 10, 1993

3

"WE OUGHT TO BE FORWARD LOOKING," HE SAID.

"THE FACT THAT THERE ARE LESSONS TO BE LEARNT DOES NOT DETRACT FROM THE GOODWILL, DEDICATION AND COMMITMENT OF ALL THOSE INVOLVED WHICH MADE IT POSSIBLE FOR HONG KONG TO BUILD A MODERN, HIGH-TECHNOLOGY UNIVERSITY IN LESS THAN FIVE YEARS FROM THE TIME THE FIRST DECISION WAS TAKEN IN MARCH 1986 TO ESTABLISH A THIRD UNIVERSITY."

THE SPOKESMAN ADDED THAT THE ADMINISTRATION DID NOT ACCEPT ALL THE CRITICISMS BY THE PAC RELATING TO THE HANDLING OF THE HKUST PROJECT.

FOR EXAMPLE, ON THE POINTS RELATING TO THE ADMINISTRATION’S APPROACH TO THE EXECUTIVE COUNCIL AND THE FINANCE COMMITTEE, THE SPOKESMAN SAID WHILE TWO OPTIONS WERE INITIALLY SUGGESTED FOLLOWING LENGTHY DISCUSSIONS, IT WAS AGREED BY ALL CONCERNED THAT THERE WAS ONLY ONE REALISTIC OPTION, THAT IS, ROYAL HONG KONG JOCKEY CLUB (RHKJC) TO FUND AND BUILD, IF THE PROJECT WAS TO BE COMPLETED IN TIME.

"THE PRESENTATION OF BOTH OPTIONS WOULD NOT HAVE ALTERED THE FINANCIAL INFORMATION INCLUDED IN THE RELEVANT EXECUTIVE COUNCIL MEMORANDUM," HE NOTED.

"THE VIEWS OF THE ADMINISTRATION ON MEASURES TO FACILITATE FINANCIAL MONITORING AND CONTROL (REFERRED TO IN THE REPORT AS ’CONDITIONS/DIRECTIVES OF EXCO’) WERE KNOWN AND ACCEPTED BY ALL PARTIES BEFORE THE EXCO MEMORANDUM ON THE RHKJC DONATION WAS CONSIDERED BY THE COUNCIL IN JUNE 1987.

"AT NO STAGE DID THE ADMINISTRATION COMMIT EXPENDITURE ON THE PROJECT WITHOUT THE NECESSARY PRIOR AUTHORITY OF THE FINANCE COMMITTEE."

-----0------

GOVERNOR VISITS TUEN MUN

* * * * *

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, THIS (WEDNESDAY) AFTERNOON TOURED THE SPASTICS ASSOCIATION OF HONG KONG’S SHELTERED WORKSHOP AT ON TING ESTATE DURING HIS VISIT TO TUEN MUN DISTRICT.

ABOUT 100 SPASTICS AND SOME MENTALLY RETARDED PERSONS ARE GIVEN TRAINING IN THE SPECIALLY EQUIPPED WORKSHOP.

THE ESTABLISHMENT WAS OPENED IN 1986. THE TRAINEES IN THE WORKSHOP HAVE INTEGRATED HARMONIOUSLY WITH THE SOME 20,000 RESIDENTS OF ON TING ESTATE.

MR PATTEN THEN WENT TO THE YAN OI TONG COMMUNITY CENTRE TO SEE SOME OF THE FACILITIES INCLUDING VARIOUS SPORTS HALLS AND A NURSERY.

/FROM THE ........

WEDNESDAY, MARCH 10, 1993

4

FROM THE CENTRE, MR PATTEN WALKED TO KAI MAN PATH, ONE OF THE DISTRICT’S BUSIEST STREETS, TO HAVE A LOOK AT THE SHOPS.

BEFORE CONCLUDING HIS VISIT, MR PATTEN MET AND DISCUSSED LOCAL AFFAIRS WITH DISTRICT BOARD MEMBERS AND COMMUNITY LEADERS AT A RECEPTION AT THE DRAGON BOAT RESTAURANT AT THE TUEN MUN TOWN HALL.

THE GOVERNOR WAS ACCOMPANIED BY THE REGIONAL SECRETARY FOR THE NEW TERRITORIES, MR ALBERT LAM AND THE DISTRICT OFFICER OF TUEN MUN, MR PETER LEUNG.

--------o------------

$100 MILLION GRANT TO OLI PROPOSED *****

THE GOVERNMENT ANNOUNCED TODAY (WEDNESDAY) THAT IT PROPOSED TO GRANT $100 MILLION TO THE OPEN LEARNING INSTITUTE (OLI) FOR THE ESTABLISHMENT OF A GENERAL DEVELOPMENT FUND, SUBJECT TO THE PROVISION OF FUNDS BY THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL.

"THE GRANT WILL ENABLE THE INSTITUTE TO INVEST IN THE DEVELOPMENT AND UPDATING OF COURSES, AND (EXCEPTIONALLY) IN MAJOR EQUIPMENT," A GOVERNMENT SPOKESMAN SAID.

"THE OLI IS CURRENTLY SPENDING ABOUT $2-3 MILLION A YEAR IN COURSE DEVELOPMENT BUT NO PROVISION IS MADE FOR UPDATING EXISTING COURSES OR TRANSLATING COURSES INTO CHINESE," HE ADDED.

IN ACCORDANCE WITH THE FUNDING ARRANGEMENTS APPROVED BY THE FINANCE COMMITTEE ON DECEMBER 14, 1988, THE OLI SHOULD BECOME SELFFINANCING AT LEAST ON ITS RECURRENT ACCOUNT BY 1993/94.

"THIS IS TO ENSURE THAT THE INSTITUTE WOULD RESPOND EFFECTIVELY TO THE NEEDS OF WORKING ADULTS," THE SPOKESMAN SAID.

"TO ASSIST THE OLI TO ACHIEVE ITS SELF-FINANCING GOAL, THE GOVERNMENT HAS ALSO MADE A ONE-OFF GRANT OF $150 MILLION TO IT TO ESTABLISH ITS PERMANENT HEADQUARTERS AT HO MAN TIN," HE ADDED.

AT PRESENT, THE OLI HAS THREE SCHOOLS - ARTS AND SOCIAL SCIENCES, BUSINESS AND ADMINISTRATION, AND SCIENCE AND TECHNOLOGY -OFFERING 20 DEGREE PROGRAMMES.

THE FIRST 17 OF THESE PROGRAMMES TO BE FULLY DEVELOPED HAVE BEEN SUCCESSFULLY VALIDATED BY THE HONG KONG COUNCIL FOR ACADEMIC ACCREDITATION.

THE CURRENT STUDENT ENROLMENT STANDS AT ABOUT 15,000 AND THE FIRST BATCH OF 150 STUDENTS ARE EXPECTED TO GRADUATE IN AUTUMN THIS YEAR.

-----0------

/5 ........

WEDNESDAY, MARCH 10, 1993

5

ITDC MEETS

» ♦ ♦

THE INDUSTRY AND TECHNOLOGY DEVELOPMENT COUNCIL (ITDC) HELD ITS FIRST MEETING IN 1993 TODAY (WEDNESDAY).

THE COUNCIL IS THE GOVERNMENT’S PRINCIPAL ADVISER ON INDUSTRY AND TECHNOLOGY DEVELOPMENT.

AFTER THE MEETING, DR RAYMOND CH’IEN, THE FIRST NON-OFFICIAL RECENTLY APPOINTED AS ITDC CHAIRMAN, SAID THE EXCHANGES AMONG ITDC MEMBERS WERE USEFUL AND STIMULATING.

DR CH’IEN SAID: "WE HAD A GOOD DISCUSSION ON THE FUTURE ROLE OF THE ITDC. THIS IS IN FACT A CONTINUATION OF WORK STARTED IN 1992.

"MEMBERS ALSO WELCOMED THE FINANCIAL SECRETARY’S LATEST PLAN TO INCREASE FUNDS FOR SUPPORTING INDUSTRY. WE SHALL ADVISE THE ADMINISTRATION ON THE WORKING OUT OF THE DETAILS.

"IT IS OUR SINCERE HOPE THAT, AS THE FINANCIAL SECRETARY HAS ENVISAGED, THERE WOULD BE SIGNIFICANT PROGRESS ON THIS INITIATIVE IN THE NEXT FEW MONTHS."

OTHER SUBJECTS DISCUSSED AT THE MEETING INCLUDED THE SCIENCE PARK STUDY REPORT AND THE PLASTICS STUDY REPORT.

ITDC’S ADVICE WOULD PROVIDE A USEFUL BASIS FOR THE GOVERNMENT TO FURTHER EXAMINE THE RECOMMENDATIONS IN THESE REPORTS WITH A VIEW TO DECIDING WHAT FOLLOW-UP ACTIONS SHOULD BE TAKEN AND WHEN.

THE NEXT MEETING OF THE ITDC WILL BE HELD IN MAY.

-----0------

NEW MEMBERS TO EXCHANGE FUND ADVISORY COMMITTEE

*****

THE GOVERNOR HAS APPOINTED THREE NEW MEMBERS TO THE EXCHANGE FUND ADVISORY COMMITTEE.

THEY ARE SIR QUO-WEI LEE, THE CHAIRMAN OF THE HANG SENG BANK LIMITED, MR ZHOU ZHENXING, GENERAL MANAGER OF THE BANK OF CHINA HONG KONG BRANCH AND MR ANTONY LEUNG KAM-CHUNG, COUNTRY CORPORATE OFFICER, HONG KONG OF CITIBANK N A.

THE APPOINTMENTS WILL RUN FOR TWO YEARS FROM MARCH 15 THIS YEAR.

A NOTICE ANNOUNCING THE APPOINTMENTS WILL BE PUBLISHED IN THE GAZETTE SHORTLY.

/IN WELCOMING .......

WEDNESDAY, MARCH 10, 1993

6

IN WELCOMING THE NEW APPOINTMENTS, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID:

"THE EXPANSION IN MEMBERSHIP IS A REFLECTION OF THE INCREASED RESPONSIBILITY OF THE COMMITTEE WHICH WILL ARISE ON THE ESTABLISHMENT OF THE HONG KONG MONETARY AUTHORITY."

THE AUTHORITY WILL BE ACCOUNTABLE TO THE FINANCIAL SECRETARY, WHO WILL CONTINUE TO BE ADVISED BY THE EXCHANGE FUND ADVISORY COMMITEE ON MATTERS RELATING TO THE CONTROL OF THE EXCHANGE FUND.

BUT REINFORCING A TREND OVER RECENT YEARS, THE INVOLVEMENT OF THE COMMITTEE IN MONETARY AND INVESTMENT MANAGEMENT MATTERS WILL BECOME MUCH CLOSER AND THE COMMITTEE WILL FUNCTION VERY MUCH LIKE A MANAGEMENT BOARD, INCLUDING ADVISING THE FINANCIAL SECRETARY ON THE ANNUAL BUDGET OF THE MONETARY AUTHORITY.

"THE THREE NEW APPOINTEES, WHO ARE ALL DISTINGUISHED MEMBERS OF THE FINANCIAL SECTOR, WILL BRING A WEALTH OF EXPERIENCE TO THE COMMITTEE’S DELIBERATIONS," MR MACLEOD SAID.

FOLLOWING THE EXPANSION IN MEMBERSHIP, THE COMPOSITION OF THE COMMITTEE WILL BE: -

THE FINANCIAL SECRETARY (CHAIRMAN)

THE CHIEF EXECUTIVE (DESIGNATE), HONG KONG MONETARY AUTHORITY

MR MARVIN CHEUNG KIN-TUNG

PROFESSOR CAE GOODHART

SIR QUO-WEI LEE

MR ANTONY LEUNG KAM-CHUNG

MR DAVID LI KWOK-PO

MR A W NICOLLE

SIR WILLIAM PURVES

MR ZHOU ZHENX1NG

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/7 ........

WEDNESDAY, MARCH 10,

1993

7 TWO SITES TO LET * * * *

THE BUILDINGS AND LANDS DEPARTMENT IS INVITING TENDERS FOR THE SHORT-TERM TENANCY OF TWO PIECES OF GOVERNMENT LAND.

THE FIRST LOT, LOCATED AT THE JUNCTION OF CHEUNG WING ROAD AND YAU MA HOM ROAD, TSUEN WAN, NEW TERRITORIES, HAS AN AREA OF ABOUT 4,950 SQUARE METRES.

IT IS INTENDED FOR USE AS A FEE-PAYING PUBLIC CAR PARK FOR VEHICLES, INCLUDING GOODS VEHICLES AND CONTAINER TRACTORS AND TRAILERS.

THE TENANCY IS FOR THREE YEARS AND RENEWABLE QUARTERLY AFTERWARDS.

THE SECOND LOT, WITH AN AREA OF ABOUT 17,000 SQUARE METRES, IS OPPOSITE WAI YIP STREET, CHA KWO LING, KOWLOON.

IT IS INTENDED FOR OPEN STORAGE OF NON-DANGEROUS GOODS (EXCLUDING STORAGE OF CONTAINERS) AND/OR PARKING OF VEHICLES OWNED BY THE TENANT.

THE TENANCY IS FOR ONE YEAR AND RENEWABLE QUARTERLY AFTERWARDS.

CLOSING DATE FOR SUBMISSION OF TENDERS IS NOON ON MARCH 26.

TENDER FORMS, TENDER NOTICE AND CONDITIONS AS WELL AS TENDER PLAN ARE AVAILABLE AT:

* THE TSUEN WAN DISTRICT LANDS OFFICE, 10TH FLOOR, TSUEN WAN STATION MULTI-STOREY CARPARK BUILDING, 174-208 CASTLE PEAK ROAD, TSUEN WAN, NEW TERRITORIES;

* THE DISTRICT LANDS OFFICES IN KOWLOON, 1OTH FLOOR, YAU MA TEI CAR PARK BUILDING, 250 SHANGHAI STREET, AND

* THE BUILDINGS AND LANDS DEPARTMENT, 14TH FLOOR, MURRAY BUILDING, GARDEN ROAD, HONG KONG.

--------0------------

/8 ........

WEDNESDAY, MARCH 10, 1993

- 8 -

37 SECONDARY SCHOOLS JOIN EXHIBITION ft ft ft ft ft

THE ASSISTANT DIRECTOR OF EDUCATION (CHIEF INSPECTOR OF SCHOOLS), MR HO CHE-LEUNG, WILL OPEN AN EXHIBITION ON "SCHOOL LIBRARY SUPPORT FOR CURRICULUM IMPLEMENTATION IN SCHOOLS" TOMORROW (THURSDAY) AT THE HONG KONG TEACHERS’ CENTRE IN NORTH POINT.

THE THREE-DAY EXHIBITION IS AIMED AT PROMOTING THE USE OF LIBRARY RESOURCES, ENCOURAGING CO-OPERATION BETWEEN SUBJECT TEACHERS AND TEACHER LIBRARIANS AND INTRODUCING VARIOUS SUBJECT-RELATED LIBRARY ACTIVITIES TO PROMOTE INTEREST IN LEARNING AMONG STUDENTS.

THIRTY-SEVEN SECONOFARY SCHOOLS WILL TAKE PART IN THE EXHIBITION WHICH IS ORGANISED BY THE EDUCATION DEPARTMENT’S LIBRARY SECTION, ADVISORY INSPECTORATE, AND THE HONG KONG TEACHER-LIBRARIANS’ ASSOCIATION.

PRINCIPALS AND TEACHERS ARE WELCOME TO VISIT THE EXHIBITION WHICH WILL BE OPEN FROM 11 AM TO 5 PM TOMORROW (THURSDAY), FROM 9 AM TO 5 PM ON FRIDAY AND FROM 9 AM TO NOON ON SATURDAY (MARCH 13).

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE OPENING CEREMONY OF THE EXHIBITION WHICH WILL BEGIN AT 10 AM TOMORROW (THURSDAY) AT THE HONG KONG TEACHERS’ CENTRE, 4 PAK FUK ROAD, NORTH POINT.

-----o------

SALT WATER CUTS IN KOWLOON EAST

* * * * ft

SALT WATER SUPPLY TO SOME PREMISES IN KOWLOON CITY WILL BE CUT FROM 9.30 AM TOMORROW (THURSDAY) TO 9.30 AM THE FOLLOWING DAY TO FACILITATE CONNECTION WORK ON WATER MAINS.

THE SUSPENSION WILL AFFECT ALL THE PREMISES BOUNDED BY PRINCE EDWARD ROAD WEST, ARGYLE STREET AND WATERLOO ROAD.

IN ADDITION, OWING TO PUMPING STATION MAINTENANCE WORK, SALT WATER SUPPLY TO MOST PREMISES IN KOWLOON EAST WILL GO OFF FROM 10 AM ON SATURDAY (MARCH 13) TO 8 AM THE FOLLOWING DAY.

THE AFFECTED AREAS INCLUDE HONG KONG INTERNATIONAL AIRPORT, KOWLOON HOSPITAL AND ALL THE PREMISES IN HUNG HOM, TO KWA WAN, TUNG TAU, WONG TAI SIN, LOK FU, KOWLOON CITY, WANG TAU HOM, CHUK YUEN, KOWLOON TONG, MA TAU WEI AND MA TAU KOK.

0 --------

Z9.........

WEDNESDAY, MARCH 10, 1993

9

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,720

REVERSAL OF LAF +430

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY NIL

CLOSING BALANCE IN THE ACCOUNT 2,150

LAF RATE 2.00 BID/4.00 OFFER TWI 114.1 «+0.1* 10.3.1993

HONG KONG GOVERNMENT

EF BILLS

TERMS YIELD TERM ISSUE

1 WEEK 2. 15 PCT 14 MONTHS 2405

1 MONTH 2.54 PCT 17 MONTHS 2408

3 MONTHS 2.84 PCT 20 MONTHS 2411

6 MONTHS 3.03 PCT 23 MONTHS 2502

12 I MONTHS 3.30 PCT

EXCHANGE FUND

HONG KONG GOVERNMENT BONDS

COUPON PRICE YIELD

5.50 102.45 3.41

5.50 101.31 3.46

4.375 101.69 3.61

4.625 101.77 3.83

TOTAL TURNOVER OF BILLS AND BONDS -

CLOSED 10 MARCH 1993

21,752MN

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SUPPLEMENT

WEDNESDAY, MARCH 10, 1993

CONTENTS PAGE NO.

MOTION DEBATE ON OFFICIALS' POLITICAL APPOINTMENT ............ 1

MOTION DEBATE ON NATIONALITY OF ETHNIC MINORITIES ............ 4

ADJOURNMENT DEBATE ON WIFE ABUSE ............................. 6

MOTION ON PUBLIC FUNDS PASSED ................................ 9

PARENT AND CHILD BILL PASSED ................................. 9

POSITION FOR CENTRAL AND WANCHAI RECLAMATION ................. 10

NO NEED TO MONITOR DEBT COLLECTION ACTIVITIES ................ 11

PUBLIC RELUCTANT TO REPORT LOANSHARKING ACTIVITIES ........... 12

RELOCATION OF COMPANIES DOES NOT AFFECT ECONOMIC DEVELOPMENT 13

RAIL COMPANIES COMMITTED TO LOCALISATION POLICY .............. 13

GOVT TO SEEK FUNDS FOR HAEMOPHILIACS ......................... 14

CMB SERVICE CLOSELY MONITORED ................................ 14

CHINESE POLITICAL SYSTEM COVERED IN SCHOOL CURRICULUM ........ 15

FIRECRACKERS BAN TO STAY ..................................... 16

/PROMOTING HOME .......

PROMOTING HOME OWNERSHIP IS GOVT OBJECTIVE

17

CAPACITY OF HK COLISEUM ........................................ 17

ALL SECRETARY POSTS TO BE FILLED BY LOCAL OFFICERS BEFORE 1997 .........................................................  18

ENOUGH TEACHERS TO MEET DEMAND ................................. 19

FINAL REPORT ON CHINESE MEDICINE READY THIS YEAR ................ 20

TALKS ON RELOCATION OF CEMENT PLANT UNDER WAY ................... 20

I

SUPPORT FOR LIFTING EMBARGO AGAINST VIETNAM ..................... 21

GOVT ENCOURAGES STUDENT ASSOCIATIONS ............................ 21

ALTERNATIVE EMPLOYMENT FOR DISPLACED HANDICAPPED WORKERS .... 22

WAYS TO TACKLE CAR REPAIR WORKSHOP POLLUTION .................... 22

MOTION ON POLITICAL APPOINTMENT OF PRINCIPAL OFFICIALS DEFEATED ....................................................... „

WEDNESDAY, MARCH 10, 1993

1

MOTION DEBATE ON OFFICIALS’ POLITICAL APPOINTMENT

*****

THE FOLLOWING IS THE SPEECH BY THE SECRETARY FOR CIVIL SERVICE, MR BARRIE WIGGHAM, WHEN WINDING UP THE MOTION DEBATE ON POLITICAL APPOINTMENT OF PRINCIPAL GOVERNMENT OFFICIALS TODAY (WEDNESDAY) IN THE LEGISLATIVE COUNCIL.

MR. PRESIDENT,

WITH EVERY RESPECT TO MR. ANDREW WONG, HIS MOTION I’M AFRAID REMINDS ME OF ONE OF THOSE IRISH STORIES, WHICH HAS A FOREIGN TRAVELLER LOST IN THE IRISH COUNTRYSIDE. HE SEES AN IRISHMAN BY THE SIDE OF THE ROAD AND ASKS HIM THE WAY TO A PARTICULAR VILLAGE. THE IRISHMAN THINKS FOR A WHILE, SCRATCHES HIS HEAD AND SAYS TO THE TRAVELLER "IF I WERE YOU I WOULDN’T START FROM HERE". MR. WONG SEEMS TO WANT US TO START FROM SOMEWHERE ELSE. HE IGNORES OUR PRESENT WHEREABOUTS.

I NOTED THAT A NUMBER OF MEMBERS REJECTING HIS PROPOSALS DID SO AT LEAST IN PART ON THE GROUNDS THAT THERE’S NOTHING VERY MUCH WRONG WITH OUR PRESENT SYSTEM. THEY MIGHT HAVE QUOTED THE CONTEMPORARY AMERICAN PHILOSOPHER "IF IT AIN’T BROKE, DON’T FIX IT!"

WHAT SORT OF SYSTEM DO WE HAVE THEN? WE HAVE IN HONG KONG EXECUTIVE-LED GOVERNMENT, ESTABLISHED THROUGH CONSTITUTION AND PRACTICE, WITH OUR MOST SENIOR OFFICIALS COMING FROM THE CIVIL SERVICE, ALMOST INVARIABLY HAVING BEEN PROMOTED THROUGH THE RANKS, WITH ALL THE ACCUMULATED KNOWLEDGE AND EXPERIENCE THAT IMPLIES. AT THE TOP WE HAVE POLICY SECRETARIES, RESPONSIBLE FOR THE FORMULATION OF POLICY PROPOSALS. THESE PROPOSALS ARE THEN SUBMITTED TO THE EXECUTIVE COUNCIL FOR FORMAL POLICY CONSIDERATION. IF ADOPTED, AND IF THEY INVOLVE REQUESTS FOR FUNDS OR LEGISLATION, THE PROPOSALS THEN COME TO THIS COUNCIL.

POLICY SECRETARIES ALSO APPEAR BEFORE THIS COUNCIL TO ANSWER QUESTIONS FROM MEMBERS, AND APPEAR BEFORE THE COUNCIL’S MANY PANELS AND COMMITTEES TO EXPLAIN AND DEFEND GOVERNMENT POLICIES. TOGETHER, THIS ADDS UP TO A SYSTEM OF ACCOUNTABILITY, WHICH ENSURES THAT THERE IS VERY LITTLE THAT THE EXECUTIVE DOES WHICH IS NOT SUBJECT TO THE CAREFUL SCRUTINY OF THE LEGISLATURE - AS IT SHOULD BE. THIS IS A WELL-ESTABLISHED, TRIED AND PROVEN SYSTEM AND ALTHOUGH I NOTED MISS EMILY LAU REFERRING TO AS AN ODD SYSTEM WHICH IS NOT FOUND ELSEWHERE IN THE WORLD. IT IS A SYSTEM WHICH WORKS, AND WHICH WILL, AS A RESULT, BE LARGELY PRESERVED IN THE BASIC LAW. MUCH OF THE THRUST OF THE JOINT DECLARATION AND THE BASIC LAW IS AN ATTEMPT TO MAINTAIN THOSE SYSTEMS WHICH HAVE SERVED HONG KONG SO WELL. AND I FOR ONE SEE COMFORT IN THIS PROMISED CONTINUITY.

/I HAVE .......

WEDNESDAY, MARCH 10, 1993

2

I HAVE EXPRESSED THE VIEW PREVIOUSLY IN THIS COUNCIL, MR. PRESIDENT, THAT AT A TIME WHEN ALL IS CHANGE, AND I MAY SAY, PERHAPS ESPECIALLY GIVEN THE DEVELOPMENT OF PARTY POLITICS REFERRED TO AGAIN BY MISS EMILY LAU WHEN ALL IS CHANGED, THE COMMUNITY IS ENTITLED TO LOOK TO THE CIVIL SERVICE FOR CONTINUITY AND STABILITY. AND SO IN THE BASIC LAW, THE SECTION DEALING WITH THE PUBLIC SERVICE CLEARLY PROVIDES THAT HONG KONG’S EXISTING SYSTEM WILL REMAIN BASICALLY UNCHANGED. ARTICLE LOL ENVISAGES THE PRINCIPAL OFFICIAL POSTS FORMING THE MAINSTAY OF AN EXECUTIVE-LED GOVERNMENT, ACCOUNTABLE TO THE LEGISLATURE (ARTICLE 64) - VERY MUCH THE SYSTEM WE ENJOY AT PRESENT.

UNDER OUR PRESENT SYSTEM - AND I SEE NO REASON WHY WE SHOULD LOOK FOR CHANGE - THE CHIEF SECRETARY, FINANCIAL SECRETARY AND ATTORNEY GENERAL POSTS ARE THE PINNACLE OF BOTH THE ADMINISTRATION AND THE CIVIL SERVICE. APPOINTMENT TO THESE POSTS HAS NORMALLY BEEN BY WAY OF PROMOTION FROM THE LEVEL BELOW, ALTHOUGH THERE HAVE OCCASIONALLY BEEN DIRECT APPOINTMENTS FROM OUTSIDE THE CIVIL SERVICE OR TRANSFERS PREVIOUSLY FROM OTHER BRITISH TERRITORIES. WHATEVER THE METHOD OF APPOINTMENT, THESE POSTS ARE QUITE CLEARLY PART OF THE CIVIL SERVICE AND ARE NOT "POLITICAL” APPOINTMENTS. BRANCH SECRETARIES ARE NORMALLY PROMOTION POSTS FROM WITHIN THE ADMINISTRATIVE SERVICE, ALTHOUGH THERE HAVE BEEN APPOINTMENTS FROM OTHER GRADES AND, VERY EXCEPTIONALLY, FROM OUTSIDE THE CIVIL SERVICE.

THE VAST MAJORITY OF THESE SENIOR OFFICIALS ARE THEREFORE CAREER OFFICERS WHO HAVE RISEN TO THEIR PRESENT POSITIONS BY DINT OF MANY YEARS OF EXPERIENCE AND PROVEN COMPETENCE AS ADMINISTRATORS, MANAGERS AND POLICY INITIATORS. IN THE CASE OF THOSE WHO HAVE RISEN THROUGH THE RANKS OF THE ADMINISTRATIVE SERVICE, THEY WILL HAVE EXPERIENCED A CONSIDERABLE NUMBER OF POSTINGS IN DIFFERENT AREAS OF GOVERNMENT ACTIVITY, AND EARLY EXPOSURE TO PUBLIC ISSUES. THIS IS SURELY ONE OF THE STRENGTHS OF OUR PRESENT SYSTEM - AND LONG MAY IT CONTINUE. I AM GRATEFUL TO MR MCGREGOR AND OTHER MEMBERS FOR THEIR RECOGNITION OF THE CALIBRE, THE STANDARDS, THE LOYALTY AND THE IMPARTIALITY OF CIVIL SERVANTS.

I AGREE WITH MR. WONG THAT THESE POLICY SECRETARIES CANNOT BE, AS HE PUTS IT, ’’ANONYMOUS AND FACELESS”. BUT I SEE NOTHING WRONG WITH THAT. AT THE VERY LEAST THEY HELP TO PUT A HUMAN FACE ON THE BUREAUCRACY. THE PUBLIC HAS COME TO EXPECT THEIR SENIOR OFFICIALS TO BE ABLE TO STAND UP, IN PUBLIC AND IN THIS COUNCIL, TO EXPLAIN AND DEFEND GOVERNMENT POLICIES, ONCE THEY HAVE BEEN ADOPTED BY THE EXECUTIVE; AND THEY SHOULD BE ABLE TO DO SO WITHOUT FEAR OR FAVOUR, WITHOUT WONDERING WHETHER THEIR ADVOCACY OF A PARTICULAR POLICY WILL AFFECT THEIR CAREER. THIS IS WHAT IS MEANT BY A NEUTRAL, APOLITICAL CIVIL SERVICE. AND I CERTAINLY AGREE WITH MR FRED LI AND OTHER MEMBERS WHO HAVE EMPHASISED THIS POINT THAT CIVIL SERVANTS SHOULD REMAIN NEUTRAL. OF COURSE, "APOLITICAL” DOES NOT MEAN THAT SENIOR CIVIL SERVANTS ARE NOT INVOLVED IN AREAS OF POLITICAL CONTROVERSY. MANY OF THE ISSUES WITH WHICH THEY DEAL ARE INDEED POLITICALLY CONTROVERSIAL. BUT ’’APOLITICAL" MEANS THAT THEY DO NOT ALLOW PERSONAL OR PARTY POLITICAL BELIEFS OR ALLEGIANCES TO INTRUDE INTO THEIR PROPER ROLE AND FUNCTION, WHICH IS, IN AS OBJECTIVE A WAY AS POSSIBLE, TO PUT THE PUBLIC WELFARE ABOVE INDIVIDUAL INCLINATIONS. THERE MAY INDEED BE FUNDAMENTAL MISUNDERSTANDING HERE THAT PRINCIPAL OFFICIALS DEALING WITH POLICY AND POLITICAL ISSUES MEAN THAT THE PRINCIPAL OFFICIALS THEMSELVES ARE ACTING IN A POLITICAL ROLE. THAT IS NOT THE CASE. IT IS THE GOVERNMENT AS A WHOLE THAT TAKES FULL RESPONSIBILITY.

/MR ALLEN .......

WEDNESDAY, MARCH 10, 1993

3

MR ALLEN LEE RAISED SOME VALID QUESTIONS IN AN ATTEMPT TO CLARIFY MR WONG’S IDEAS. ONE MIGHT INDEED ASK WHERE, IN MR. WONG’S STRUCTURE, IS THE SOURCE OF AUTHORITY OF HIS PROPOSED POLITICAL APPOINTEES? WHAT WOULD BE THEIR LEGITIMACY? WHAT WOULD BE THEIR RELATIONSHIP WITH THE EXECUTIVE AUTHORITIES - THAT IS BOTH THE GOVERNOR IN COUNCIL AND SENIOR MEMBERS OF WHAT WE CONFUSINGLY CALL THE ADMINISTRATION? WHAT ADVANTAGE WOULD THEY ENJOY OVER THE SENIOR OFFICIALS THEY WOULD BE REPLACING IN TERMS OF GETTING LEGISLATIVE AND FINANCIAL PROPOSALS THROUGH THIS COUNCIL? WITH OUR EXECUTIVE-LED SYSTEM WE DO NOT HAVE, AND ARE NOT LIKELY TO HAVE, THE SORT OF CONVENTIONAL ARRANGEMENT WE SEE ELSEWHERE, WHICH PRODUCES POLITICIANS BACKED BY MAJORITY PARTY SUPPORT TO TAKE UP EXECUTIVE PORTFOLIOS.

MR. PRESIDENT, THE TRANSITION TO 1997 IS ALREADY UPON US. THE ROUTE IS CLEARLY MAPPED OUT IN THE BASIC LAW. THE PRESENT SYSTEM PROVIDES FOR AN EXECUTIVE-LED GOVERNMENT ACCOUNTABLE TO THE LEGISLATURE. THE SYSTEM WORKS WELL. THERE IS NO EVIDENCE THAT TURNING SENIOR CIVIL SERVICE APPOINTMENTS INTO POLITICAL APPOINTMENTS WOULD IMPROVE THE EXISTING SYSTEM, MAKE IT WORK BETTER, OR IN ANY WAY HELP MAINTAIN STABILITY AND CONTINUITY IN THE MOST SENIOR RANKS OF THE CIVIL SERVICE. INDEED, MEMBERS WILL WISH TO CONSIDER MOST CAREFULLY THE LONGER-TERM IMPLICATIONS OF POLITICAL APPOINTMENTS OF PRINCIPAL OFFICIALS. CONTINUITY IS INDEED AN IMPORTANT THEME. AND MR TAM YIU-CHUNG ASKED THE QUESTION WHETHER WE THE ADMINISTRATION, SENIOR OFFICIALS ARE READY FOR THE TRANSITION. WE ARE, OF COURSE, FULLY AWARE OF THE PROVISIONS OF THE JOINT DECLARATION AND THE BASIC LAW RELATING TO PRINCIPAL OFFICIALS. WE ARE,'AS THE GOVERNOR STATED IN HIS ADDRESS LAST OCTOBER, DEVELOPING THE MOMENTUM OF LOCALISATION TO ENSURE THAT A RESERVOIR OF TALENT IS CREATED UPON WHICH WE CAN DRAW TO SELECT QUALIFIED AND SUITABLE LOCAL OFFICERS TO FILL ALL THESE POSTS BEFORE 1997. THIS EXERCISE IS VERY IMPORTANT TO THE STABILITY AND CONTINUITY OF HONG KONG AND WE MUST SEEK TO MAINTAIN MAXIMUM CONTINUITY TO 1997 AND BEYOND.

MR K K FUNG MADE REFERENCES WORRIES ON THE PART OF CIVIL SERVICE. OF COURSE, CIVIL SERVANTS AND INDEED HONG KONG PEOPLE AS A WHOLE HAVE EXPRESSED VARIOUS CONCERNS ABOUT 1997. BUT IT WOULD, I THINK, BE QUITE ERRONEOUS TO ASSUME THAT WE IN THE CIVIL SERVICE AS A RESULT OF THOSE CONCERNS FACE A MASS EXODUS OF SENIOR AND MIDDLE RANKING LOCAL OFFICIALS SIMPLY BECAUSE OF 1997. THE JOINT DECLARATION AND THE BASIC LAW BOTH PROVIDE SPECIFIC GUARANTEES FOR THE CONTINUATION OF THE CIVIL SERVICE ON TERMS NO LESS FAVOURABLE THAN BEFORE AND THESE COVER, INTER ALIA, TERMS OF SERVICE, SALARIES, PENSIONS AND PROMOTION ARRANGEMENTS. IN ADDITION, THE CHINESE GOVERNMENT HAS REPEATEDLY REASSURED CIVIL SERVANTS THAT THEY SHOULD NOT FEAR THE TRANSFER OF SOVEREIGNTY IN 1997 AND THAT THEY WILL NOT BE PENALISED AFTER THE TRANSFER OF SOVEREIGNTY.

WHILST I HAVE NO DOUBT THAT THE MOTION IS INTENDED AS A GENUINE ATTEMPT TO PROTECT THE CIVIL SERVICE FROM POLITICAL WORRIES, I CANNOT HELP FEELING THAT, IF ADOPTED, IT WOULD HAVE THE OPPOSITE EFFECT. THE EXISTING SYSTEM WORKS WELL, AND THE SORT OF FUNDAMENTAL CHANGE IMPLICIT IN THE MOTION SEEMS COMPLETELY UNCALLED FOR. FAR FROM REASSURING CIVIL SERVANTS, I SUGGEST THAT THE INTRODUCTION OF POLITICAL APPOINTMENTS AT THE TOP WOULD HAVE A DESTABILISING EFFECT ON THE CIVIL SERVICE AND WOULD MILITATE AGAINST CONTINUITY AT THE SENIOR LEVELS. OUR EXISTING SYSTEM IS WELL TRIED AND TESTED. LET US BUILD ON IT AS PROVIDED IN THE BASSIC LAW, NOT IMAGINE THAT WE CAN START OUR JOURNEY FROM SOMEWHERE ELSE.

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/9 ......

WEDNESDAY, MARCH 10, 1993

MOTION DEBATE ON NATIONALITY OF ETHNIC MINORITIES

*****

THE FOLLOWING IS THE SPEECH BY THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, WHEN WINDING UP THE MOTION DEBATE ON THE REPORT OF THE NATIONALITY SUB-COMMITTEE TODAY (WEDNESDAY) IN THE LEGISLATIVE COUNCIL.

MR PRESIDENT,

THE ADMINISTRATION IS GRATEFUL TO MISS EMILY LAU AND THE SUBCOMMITTEE ON NATIONALITY FOR THEIR REPORT, AND APPRECIATES THEIR EFFORTS ON BEHALF OF THE ETHNIC MINORITIES. THIS SUBJECT WAS DEBATED IN THIS COUNCIL LAST NOVEMBER. BUT THE SUB-COMMITTEE HAS SUCCEEDED IN CLARIFYING AND FOCUSSING THE ISSUE. IT CONCENTRATES, RIGHTLY IN MY VIEW, ON THE ESTIMATED 7,000 HONG KONG PERMANENT RESIDENTS WHO ARE NOT CHINESE, BUT WHO HAVE RIGHT OF ABODE ONLY IN HONG KONG. THE GREAT MAJORITY OF THESE PEOPLE ARE OF INDIAN ORIGIN, HOLDING BDTC OR BN(O) PASSPORTS.

I AGREE WITH THE POINT MADE IN THE REPORT THAT THE BRITISH NATIONALITY SCHEME DOES NOT PROVIDE A SOLUTION WHICH WOULD MEET THE CONCERNS OF ALL MEMBERS OF THE ETHNIC MINORITIES. THEIR POSITION WAS CONSIDERED WHEN THE BRITISH NATIONALITY SCHEME WAS INTRODUCED. AS THE REPORT ACKNOWLEDGES, THE BRITISH NATIONALITY SCHEME IS INTENDED FOR A DIFFERENT PURPOSE AND NOT FOR A SPECIFIC MINORITY GROUP. IT WOULD NOT BE POSSIBLE TO ACCOMMODATE THE 7,000 MEMBERS OF THE ETHNIC MINORITIES, COMPRISING PERHAPS 2,000 TO 2,500 FAMILIES, WITHIN THE SECOND TRANCHE OF THE BRITISH NATIONALITY SCHEME, WITHOUT GREATLY DISTORTING THE ALLOCATION AND CHANGING THE OBJECTIVES OF THE SCHEME.

THE ADMINISTRATION HAS PASSED TO THE BRITISH GOVERNMENT THE VIEWS THEY EXPRESSED ON THIS ISSUE LAST NOVEMBER. WE HAVE ALSO BEEN REPORTING THE DELIBERATIONS OF THE NATIONALITY SUB-COMMITTEE. AND I AM AWARE THAT THE CHAIRMAN OF THE SUB-COMMITTEE AND OTHER MEMBERS DISCUSSED THE SUBJECT WITH THE HOME OFFICE MINISTER, MR WARDLE, AT THE HOME OFFICE IN JANUARY THIS YEAR.

THE BRITISH GOVERNMENT HAS AGAIN CONSIDERED THE QUESTION OF THE ETHNIC MINORITIES IN HONG KONG, AND HAS ASKED ME TO USE THIS OPPORTUNITY TO PASS ON MORE FORMALLY THEIR RESPONSE TO THE NOVEMBER DEBATE. FIRST, THE BRITISH GOVERNMENT HAS ASKED ME TO STRESS AGAIN THAT THERE CAN BE NO QUESTION OF INCREASING THE SCALE OF THE BRITISH NATIONALITY SCHEME BEYOND THE AGREED TOTAL OF 50,000 PRINCIPAL BENEFICIARIES, IN ORDER TO ACCOMMODATE THE ETHNIC MINORITIES.

/SECONDLY, THE ........

WEDNESDAY, MARCH 10, 1993

SECONDLY, THE BRITISH GOVERNMENT HAS CONFIRMED THAT IT IS NOT POSSIBLE TO GRANT BRITISH CITIZENSHIP TO THE ETHNIC MINORITIES IN HONG KONG UNDER THE BRITISH NATIONALITY ACT 1981. NEW PRIMARY LEGISLATION WOULD BE NECESSARY IF SPECIAL TREATMENT WERE TO BE ACCORDED TO THIS GROUP. THE BRITISH GOVERNMENT, HOWEVER, IS NOT PERSUADED OF THE CASE FOR FRESH LEGISLATION TO GIVE BRITISH CITIZENSHIP TO THE ETHNIC MINORITIES; IT BELIEVES THAT THIS COMMUNITY’S POSITION IN HONG KONG IS SECURE: NEITHER THEIR CHILDREN OR GRANDCHILDREN WILL BE STATELESS; THEY ARE ELIGIBLE TO APPLY FOR CITIZENSHIP UNDER THE BRITISH NATIONALITY SCHEME, AND SOME HAVE APPLIED AND BEEN SUCCESSFUL; AND THE BRITISH GOVERNMENT STANDS BY ITS UNDERTAKING TO CONSIDER THEIR CASE FOR ADMISSION TO THE UNITED KINGDOM WITH PARTICULAR SYMPATHY IF, CONTRARY TO EXPECTATIONS, THEY WERE IN FUTURE TO COME UNDER SEVERE PRESSURE TO LEAVE HONG KONG.

THIS IS NOT NEW, BUT I RECOGNISE THAT IT WILL COME AS A DISAPPOINTMENT TO MEMBERS OF THIS COUNCIL AND TO THE ETHNIC MINORITIES. I WOULD NOT, HOWEVER, WISH TO RAISE EXPECTATIONS OF A MORE FAVOURABLE RESPONSE IN FUTURE.

AS REGARDS THE POSITION OF THE HONG KONG GOVERNMENT ON THIS ISSUE, I SHOULD LIKE TO SPELL THIS OUT WITH REFERENCE TO THE POINTS IN THE REPORT ITSELF.

THE REPORT REFERS TO THE FACT THAT THE ETHNIC MINORITIES ARE DEEPLY ROOTED IN THE HONG KONG COMMUNITY. I ACKNOWLEDGE THIS, AND THEIR WISH TO REMAIN IN HONG KONG WHERE THEY HAVE PROSPERED AND MADE THEIR HOMES. I AM SURE THAT HONG KONG PEOPLE, AS WELL AS THE BRITISH, CHINESE AND HONG KONG GOVERNMENTS, WISH THEM TO STAY IN HONG KONG. THAT IS WHY WE SOUGHT AND OBTAINED THE RIGHT OF ABODE IN HONG KONG FOR THIS MINORITY IN THE JOINT DECLARATION. THIS IS REFLECTED IN THE BASIC LAW.

IT IS NOT CORRECT TO CALL THESE PEOPLE STATELESS. THE CHANGE OF SOVEREIGNTY IN 1997 WILL NOT MAKE THEM STATELESS. ALL THOSE WHO ARE NOW BRITISH DEPENDENT TERRITORY CITIZENS (BDTCS) WILL CONTINUE TO HAVE BRITISH NATIONALITY EITHER BY REGISTERING AS BRITISH NATIONALS (OVERSEAS) (BNOS) OR AUTOMATICALLY AS BRITISH OVERSEAS CITIZENS (BOCS). IN EITHER CASE, THEY CAN CONTINUE TO HOLD BRITISH PASSPORTS. THEY WILL BE ELIGIBLE FOR BRITISH CONSULAR PROTECTION THROUGHOUT THE WORLD, INCLUDING IN THE HONG KONG SPECIAL ADMINISTRATIVE REGION. THEIR STATUS AS BRITISH NATIONALS WILL BE TRANSMISSABLE TO THEIR CHILDREN AND GRANDCHILDREN. TRANSMISSION BY DESCENT WILL NOT GO BEYOND THE SECOND GENERATION. BUT NOR DOES IT FOR ANY EXPATRIATE BRITISH CITIZENS LIVING OUTSIDE THE UNITED KINGDOM.

I AGREE, HOWEVER, WITH MEMBERS THAT ETHNIC MINORITIES ARE IN A SPECIAL POSITION AND I ACKNOWLEDGE THE VALUABLE CONTRIBUTION WHICH THE ETHNIC MINORITIES HAVE MADE TO HONG KONG. I ACCEPT THAT MOST MEMBERS OF THE GROUP HAVE EVERY INTENTION OF STAYING IN HONG KONG, AND ARE SIMPLY SEEKING A REASSURANCE WHICH WILL ENABLE THEM TO FACE THEIR FUTURE IN HONG KONG WITH CONFIDENCE.

I RECOGNISE THE STRENGTH OF FEELING OF MANY MEMBERS OF THIS COUNCIL THAT THE EXISTING ASSURANCES ARE NOT ADEQUATE FOR THIS PURPOSE AND THAT FULL BRITISH CITIZENSHIP SHOULD BE GRANTED. IF THE MOTION TODAY IS PASSED, WE WILL CERTAINLY PUT THE CASE ONCE MORE FORCEFULLY TO THE BRITISH GOVERNMENT.

/6.........

WEDNESDAY, MARCH 10, 1993

6 -

ADJOURNMENT DEBATE ON WIFE ABUSE ♦ ♦ * ♦ *

THE FOLLOWING IN THE SPEECH BY THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, WHEN WINDING UP THE ADJOURNMENT DEBATE ON WIFE ABUSE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MADAM DEPUTY,

INTRODUCTION

I AM MOST GRATEFUL FOR THIS ADJOURNMENT DEBATE ON WIFE ABUSE, PARTICULARLY IN THIS WEEK WHEN WE CELEBRATE INTERNATIONAL WOMAN’S DAY AND MORE PARTICULARLY WHEN THE DEBATE IS MOVED BY MAN, THE HONOURABLE MOSES CHENG. I AM EQUALLY GRATEFUL TO HEAR THAT WE ARE IN FACT AGAINST CHILD ABUSE AND WE WILL CERTAINLY CONSIDER SOME OF THE CONSTRUCTIVE SUGGESTIONS. I NEED NOT REPEAT THE ARGUMENTS BUT I DO WISH TO MAKE A FEW POINTS AS TO FACTS AND TO SHARE WITH HONOURABLE MEMBERS SOME RELEVANT STATISTICS. ABUSE OF ANY KIND IS A SERIOUS MATTER IN THAT IT ENDANGERS OR IMPAIRS ONE’S PHYSICAL OR MENTAL WELL-BEING. ANY ABUSE CAUSES TREMENDOUS PAIN AND SUFFERING NOT ONLY TO THOSE ABUSED, BUT ALSO TO OTHERS AROUND THEM.

STATISTICS

THERE HAS IN FACT IN RECENT YEARS BEEN A STEADY DECLINE IN THE NUMBER OF ’’BATTERED WIFE” CASES. THE FIGURES KNOWN TO THE SOCIAL WELFARE DEPARTMENT HAVE FALLEN FROM 455 IN 1988/89, TO 272 IN 1989/90, 236 IN 1990/91 AND 209 IN 1991/92. THIS DECLINE HAS ALSO BEEN BORNE OUT BY POLICE STATISTICS ON FEMALE VICTIMS WOUNDED OR ASSAULTED BY THEIR RESPECTIVE SPOUSES. THE FIGURE HAS COME DOWN FROM 173 IN 1991 TO 160 IN 1992. I HOPE THIS DOWNWARD TREND CONTINUES.

1 NOTE THAT HONOURABLE MEMBERS HAVE FOCUSSED ONLY ON "WIFE” ABUSE. BUT IT IS NOT ONLY WIVES WHO ARE ABUSED OR BATTERED. THERE ARE CERTAIN TRAGIC CHILD ABUSE CASES THE SUBJECT OF WHICH WAS DEBATED IN THIS COUNCIL NOT SO LONG AGO. POLICE STATISTICS OVER THE PAST FOUR YEARS INDICATE THAT DOMESTIC VIOLENCE CAN ALSO HAPPEN TO MEN ASSAULTED BY THEIR WIVES, ALTHOUGH THE FIGURE TN THIS RESPECT IS LOWER. THE RATIO OF BATTERED HUSBANDS TO BATTERED WIVES IS 1:5. COULD IT BE THAT MEN AS A GROUP ARE MORE VIOLENT THAN WOMEN? OR COULD IT BE THAT BATTERED MEN ARE TOO ASHAMED TO COME FORWARD?

BE THAT AS IT MAY, IT IS UNDERSTOOD THAT DOMESTIC VIOLENCE TENDS TO BE A MUCH UNDER-REPORTED CRIME; AND THAT IT CAN HAPPEN TO CHILDREN, TO MEN, AS WELL AS WOMEN.

/SERVICES PROVIDED .......

WEDNESDAY, MARCH 10, 1993

SERVICES PROVIDED

NOW, I WOULD LIKE TO INFORM MEMBERS OF SERVICES AVAILABLE TO VICTIMS OF SPOUSE ABUSE. AS REGARDS MEDICAL SERVICES, PROMPT MEDICAL TREATMENT AT ACCIDENT AND EMERGENCY DEPARTMENTS IS GIVEN TO VICTIMS OF ABUSE. WITH THE CONSENT OF THE PATIENTS CONCERNED, THEIR CASES ARE REFERRED TO THE MEDICAL SOCIAL WORKER FOR INVESTIGATION, COUNSELLING AND OTHER APPROPRIATE ACTION. THE PATIENTS ARE ALSO ADVISED TO FILE A REPORT WITH THE POLICE. OTHER NON-GOVERNMENTAL ORGANIZATIONS ALSO PROVIDE SUPPORTING SERVICES FOR THESE VICTIMS.

PROTECTION UNDER THE LAW AS WAS MENTIONED HERE IS GIVEN UNDER THE DOMESTIC VIOLENCE ORDINANCE (CAP 189). THE ORDINANCE LAYS DOWN PROCEDURES FOR THE GRANTING OF INJUNCTION AND ARREST OF PERSONS IN BREACH OF THE INJUNCTION ORDER. WHERE CASES ARE REPORTED TO THE POLICE, THEY ARE INVESTIGATED IN THE SAME WAY AS IN ANY OTHER REPORTED CRIME. IT IS A COMMON FALLACY TO ASSUME THAT DOMESTIC VIOLENCE IS TREATED LIGHTLY BY THE POLICE AS A FAMILY DISPUTE OR PRIVATE AFFAIR. IT IS NOT SO. SINCE STUDYING THE PROBLEM VIA A WORKING GROUP SET UP BY THE POLICE ON DOMESTIC VIOLENCE AND CHILD ABUSE, THE POLICE HAVE INSTITUTED MEASURES TO GIVE ADVICE AND TO PROVIDE INFORMATION ON THE ROLE AND POWER OF THE POLICE,'AVENUES OF LEGAL REDRESS AVAILABLE AND DETAILS OF SERVICES PROVIDED. HOWEVER, THE ABILITY TO PROSECUTE THE ABUSER IS OFTEN HINDERED BY THE RELUCTANCE OF THE VICTIM TO MAKE A STATEMENT INCRIMINATING THE SPOUSE.

COUNSELLING

COUNSELLING IS PROVIDED TO VICTIMS OF DOMESTIC VIOLENCE. THEY CAN APPROACH FAMILY SERVICE CENTRES OF THE SOCIAL WELFARE DEPARTMENT OR NON-GOVERNMENTAL ORGANIZATIONS FOR HELP. THE FAMILY SERVICE CENTRES OFFER COUNSELLING, ASSISTANCE IN ARRANGING TEMPORARY SHELTER, CHILD CARE SERVICE AND FINANCIAL ASSISTANCE. IF NECESSARY, A BATTERED WIFE IS REFERRED TO THE LEGAL AID DEPARTMENT FOR HELP. A VICTIM CAN THEN SEEK AN INJUNCTION FROM THE COURTS AGAINST THE SPOUSE UNDER THE DOMESTIC VIOLENCE ORDINANCE. THE FAMILY SECTION OF LEGAL AID DEPARTMENT IS INTRODUCING A MORNING CLINIC WHERE ANY CLIENT MAY ATTEND WITHOUT APPOINTMENT TO DEAL WITH URGENT CONCERNS. IT ALSO HAS A HOTLINE TELEPHONE REFERRAL TO THE SOCIAL WELFARE DEPARTMENT AND MAKES DIRECT REFERRALS TO THE POLICE. IN URGENT CASES, AN INJUNCTION CAN BE OBTAINED WITHIN HOURS. THE EXCELLENT LIAISON AND CO-OPERATION WHICH EXIST BETWEEN GOVERNMENT DEPARTMENTS AND NON-GOVERNMENTAL ORGANISATIONS WILL BE FURTHER FORMALISED THROUGH THE FORMATION OF A FAMILY CONCERN CLINIC IN THE FAMILY SECTION OF THE LEGAL AID DEPARTMENT.

/TEMPORARY SHELTERS .......

WEDNESDAY, MARCH 10, 1993

8

TEMPORARY SHELTERS FOR BATTERED WOMEN

WE ALL KNOW THAT TWO SHELTERS FOR WOMEN OPERATE ROUND-THE-CLOCK TO PROVIDE TEMPORARY ACCOMMODATION FOR BATTERED WIVES AND THEIR CHILDREN. WAI ON HOME FOR WOMEN IS OPERATED BY THE SOCIAL WELFARE DEPARTMENT AND HARMONY HOUSE IS RUN BY A NON-GOVERNMENTAL ORGANIZATION. BOTH SHELTERS RECEIVE DIRECT APPLICATIONS AND REFERRALS FROM THE POLICE, HOSPITAL STAFF AND SOCIAL WORKERS.

ASSISTANCE TOWARDS HOUSING

IN ORDER TO MEET THE URGENT NEED FOR SEPARATE HOUSING FOR SEPARATED OR DIVORCED COUPLES, THE GRANT OF A CONDITIONAL TENANCY IN A PUBLIC HOUSING ESTATE IS AVAILABLE TO THE AGGRIEVED PARTY WITH DEPENDENT CHILDREN UNDER THE COMPASSIONATE REHOUSING CATEGORY, WHILE HE OR SHE AWAITS THE AWARD OF A DIVORCE DECREE AND CUSTODY OF CHILDREN. THIS SCHEME IS MEANT TO ENABLE SEPARATED PERSONS TO MOVE AWAY FROM HIS OR HER SPOUSE WHILE AWAITING A DIVORCE.

PREVENTIVE MEASURES

FAMILY IS THE HEART OF SOCIETY. IT SHOULD BE A PLACE OF LOVE AND SECURITY. REGRETTABLY, IT IS SOMETIMES NOT SO. PREVENTION OF DOMESTIC VIOLENCE IS ALWAYS BETTER THAN CURE. OUR FAMILY LIFE EDUCATION SERVICE WILL CONTINUE TO FOCUS ON THE IMPORTANCE OF A HARMONIOUS FAMILY LIFE AND HOW IT CAN BE SUSTAINED. FAMILY CASEWORK AND COUNSELLING WILL REMAIN THE PRINCIPAL MEANS WHEREBY FAMILIES ARE ASSISTED TO UNDERSTAND AND DEAL WITH PROBLEMS OF INTERPERSONAL RELATIONSHIPS. WE WILL CONTINUE TO WORK TO PRESERVE AND STRENGTHEN THE FAMILY AS A UNIT AND TO HELP DEVELOP CARING INTERPERSONAL RELATIONSHIPS AMONG FAMILY MEMBERS.

CONCLUSION

SPOUSE ABUSE IS A COMPLEX PROBLEM REQUIRING A MULTIDISCIPLINARY APPROACH INVOLVING PROFESSIONALS SUCH AS DOCTORS, SOCIAL WORKERS AND CLINICAL PSYCHOLOGISTS. MORE IMPORTANTLY, IT IS AN ISSUE THAT INVOLVES THE WHOLE FAMILY. THERE ARE STUDIES TO SUPPORT THE THEORY THAT AN ABUSIVE SPOUSE TENDS TO COME FROM A HOME WHERE ABUSE WAS PRACTISED AND THAT THE PATTERN IS REPEATED IN THE NEXT GENERATION. AS A COMMUNITY, WE SHOULD ENDEAVOUR TO BREAK THIS VICIOUS CIRCLE BY PROMOTING THE IMPORTANCE OF A HARMONIOUS FAMILY LIFE AND, ONLY IN UNFORTUNATE CASES, BY HELPING THOSE AT RISK.

MADAM DEPUTY, SPOUSE ABUSE IS NOT ONLY RESTRICTED TO WOMEN. IT IS NOT A GENDER ISSUE. IT IS A SOCIAL ISSUE. WHILST MUCH MORE NEEDS TO BE DONE, THE PROBLEM IS NEVERTHELESS RECOGNISED. PERHAPS WHAT WE NEED, IS NOT SO MUCH SPORADIC CLARION CALLS TO ACTION. WHAT WE NEED, MADAM, IS HEIGTHENED AWARENESS AND PERPETUAL VIGILANCE AND SUSTAINED ACTION AGAINST ALL FORMS OF DOMESTIC ABUSE IN THE FAMILY. THAT IS WHAT WE HAVE DONE. AND THAT IS WHAT WE WILL CONTINUE TO DO. THANK YOU MADAM DEPUTY.

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/9 ........

WEDNESDAY, MARCH 10, 1993

9

MOTION ON PUBLIC FUNDS PASSED

* » » » »

THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PASSED A MOTION PROVIDING FUNDS ON ACCOUNT TO ENABLE THE GOVERNMENT TO CARRY ON EXISTING SERVICES BETWEEN THE START OF THE FINANCIAL YEAR ON APRIL 1 AND THE ENACTMENT OF THE APPROPRIATION BILL.

THE FUNDS AMOUNT TO ABOUT $50.6 BILLION.

THE MOTION WAS MOVED BY THE SECRETARY FOR THE TREASURY, MR K Y YEUNG UNDER THE PUBLIC FINANCE ORDINANCE.

-----0------

PARENT AND CHILD BILL PASSED

* » » * »

THE PARENT AND CHILD BILL, WHICH AIMED AT ENSURING THAT AN ILLEGITIMATE CHILD WOULD, SO FAR AS PRACTICABLE, BE TREATED BY THE LAW IN THE SAME WAY AS A LEGITIMATE CHILD, WAS PASSED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING AT THE RESUMED DEBATE OF THE BILL, THE ATTORNEY GENERAL, THE HON JEREMY MATHEWS, SAID THE SAME RANGE OF MAINTENANCE ORDERS WAS MADE AVAILABLE IN RESPECT OF BOTH LEGITIMATE AND ILLEGITIMATE CHILDREN BY AMENDING THE GUARDIANSHIP OF MINORS ORDINANCE.

ORIGINALLY THE BILL SOUGHT TO ACHIEVE THE PURPOSE OF PROVIDING THE MAINTENANCE ORDERS BY AMENDMENTS TO THE AFFILIATION PROCEEDINGS ORDINANCE.

HOWEVER, WHEN THE BILL WAS BEING STUDIED, IT BECAME APPARENT THAT THE AFFILIATION PROCEEDINGS ORDINANCE MIGHT CONTAIN PROVISIONS THAT WERE INCONSISTENT WITH THE BILL OF RIGHTS, MR MATHEWS SAID.

HE SAID THE SECRETARY FOR HEALTH AND WELFARE HAD THEREFORE DECIDED TO CARRY OUT AN OVERALL REVIEW OF THE AFFILIATION PROCEEDINGS ORDINANCE AS A MATTER OF PRIORITY WHILE THIS ORDINANCE WOULD REMAIN UNAMENDED.

INSTEAD THE GUARDIANSHIP OF MINORS ORDINANCE WAS AMENDED TO ACHIEVE THE INTENTION OF MAKING AVAILABLE THE SAME RANGE OF MAINTENANCE ORDERS TO LEGITIMATE AND ILLEGITIMATE CHILDREN.

MR MATHEWS ALSO NOTED THAT SOME MEMBERS OF THE LEGCO AD HOC GROUP STUDYING THE BILL HAD EXPRESSED RESERVATIONS ON CLAUSES 9 TO 12 OF THE BILL, WHICH REFERRED TO SURROGACY AND BIRTHS BROUGHT ABOUT THROUGH ARTIFICIAL INSEMINATION OR OTHER SCIENTIFIC MEANS AS THIS WAS AN AREA OF THE LAW WHICH RAISED SENSITIVE ISSUES OF ETHICS AND MORALITY.

/HE REITERATED .......

WEDNESDAY, MARCH 10, 1993

10

HE REITERATED THAT THE BILL WAS NOT CONCERNED WITH WHETHER OR NOT SURROGACY AND SCIENTIFICALLY ASSISTED BIRTH WAS DESIRABLE, NOR WITH CONSIDERING THE CONTROLS, IF ANY, WHICH SHOULD BE APPLIED.

"THIS BILL DEALS ONLY WITH MAKING PROVISION TO IDENTIFY THE LEGAL PARENTS WHERE SUCH BIRTHS TAKE PLACE, AND TO PROVIDE A LEGAL MECHANISM FOR PARTIES TO A SURROGACY TO APPLY TO THE COURT FOR AN ORDER AS TO THE CHILD’S PARENTAGE WHICH REFLECTS THE REALITY OF THE SURROGACY ARRANGEMENT," MR MATHEWS SAID.

HE SAID THE EXTENT TO WHICH SUCH ARRANGEMENTS SHOULD BE ALLOWED, OR HOW THEY SHOULD BE REGULATED, WERE QUESTIONS WHICH FELL OUTSIDE THE AMBIT OF THE BILL.

IN VIEW OF THE COMPLEX ISSUES INVOLVED IN THIS AREA, HE SAID, THE SECRETARY FOR HEALTH AND WELFARE INTENDED TO ISSUE A CONSULTATION PAPER IN THE NEAR FUTURE ON THE SUBJECT OF SCIENTIFICALLY ASSISTED HUMAN REPRODUCTION.

--------0 - -

POSITION FOR CENTRAL AND WANCHAI RECLAMATION

*****

EVALUATION OF THE CURRENT TENDER PROPOSALS INDICATED THAT IT WOULD STILL BE POSSIBLE TO COMPLETE THE CENTRAL AND WANCHAI RECLAMATION PHASE 1 PROJECT BY ITS TARGET DATE OF MID-1997.

THIS WAS STATED BY THE SECRETARY FOR WORKS, MR JAMES BLAKE, IN REPLY TO A QUESTION BY THE HON HOWARD YOUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE TWO LOWEST TENDERERS FOR THE CONTRACT HAD AGREED TO EXTEND THE VALIDITY OF THEIR TENDERS FOR A FURTHER MONTH FROM MARCH 8 TO APRIL 6.

MR BLAKE EXPLAINED THAT PHASE 1 OF THE RECLAMATION WOULD PROVIDE LAND FOR A NUMBER OF PURPOSES WHICH WOULD BE OF VALUE TO THE DEVELOPMENT OF HONG KONG.

"IT IS PARTLY TO ACCOMMODATE THE AIRPORT RAILWAY’S HONG KONG STATION, AND IS THEREFORE INCLUDED AS ONE OF THE 10 CORE PROJECTS INCLUDED IN THE MEMORANDUM OF UNDERSTANDING.

"IN THE MAIN HOWEVER, IT IS THE FIRST STAGE OF PROVIDING NEW LAND FOR EXPANSION OF THE CENTRAL BUSINESS DISTRICT AND LONG-TERM HIGHWAY DEVELOPMENT ALONG WITH THE NORTH SHORE OF THE ISLAND, UNDER THE CENTRAL AND WANCHAI RECLAMATION LAND DEVELOPMENT STRATEGY," HE SAID.

/MR BLAKE .......

WEDNESDAY, MARCH 10, 1993

- 11

MR BLAKE EXPLAINED THAT THE PRESENT EXTENSION HAD NO DIRECT IMPACT ON THE AIRPORT CORE PROGRAMME AS A WHOLE, EXCEPT THAT ONE PURPOSE OF THE RECLAMATION WAS TO PROVIDE LAND FOR THE AIRPORT RAILWAY’S HONG KONG STATION.

"WHILST DESIGN WORK ON THE AIRPORT RAILWAY INCLUDING THE HONG KONG STATION IS WELL UNDERWAY, PROGRESS ON THE AIRPORT RAILWAY DEPENDS NOT ONLY ON THIS PHASE 1 RECLAMATION BUT ALSO REACHING AGREEMENT WITH THE CHINESE SIDE ON FINANCING ARRANGEMENTS FOR THE AIRPORT RAILWAY," HE SAID.

0---------

NO NEED TO MONITOR DEBT COLLECTION ACTIVITIES *****

DEBT COLLECTION IS A LEGITIMATE ACTIVITY AND THE ADMINISTRATION DOES NOT CONSIDER THAT THERE IS ANY PRUDENTIAL NEED FOR MONITORING OR REGULATION, THE SECRETARY FOR MONETARY AFFAIRS, MR MICHAEL CARTLAND, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY THE HON FREDERICK FUNG KIN-KEE, MR CARTLAND SAID HOWEVER, IF INDIVIDUAL DEBT COLLECTORS WERE TO RESORT TO ILLEGAL MEANS TO PURSUE THEIR BUSINESS, SUCH AS CRIMINAL DAMAGE, INTIMIDATION OR VIOLENCE, THIS WOULD BE A LAW AND ORDER MATTER THAT WOULD BE DEALT WITH BY THE POLICE.

"THERE IS NO SUPERVISION OF THE OPERATION OF DEBT COLLECTING COMPANIES," HE SAID.

HONG KONG’S BANKING LEGISLATION DOES NOT CONTAIN PROVISIONS DEALING WITH THE HIRING OF THIRD PARTIES BY AUTHORISED INSTITUTIONS TO HELP IN THE RECOVERY OF OUTSTANDING LOANS.

"THE SYSTEM OF BANKING SUPERVISION IS NOT GEARED TOWARDS THE REGULATION OF THE DAY-TO-DAY OPERATION OF INSTITUTIONS, SUCH AS THE WAY IN WHICH OUTSTANDING LOANS ARE RECOVERED," MR CARTLAND SAID.

WHETHER OR NOT AN INSTITUTION CAN BE IMPLICATED IN CRIMINAL ACTS COMMITTED BY ITS AGENTS WILL DEPEND ON THE CIRCUMSTANCES OF THE CASE, HE SAID.

LEGAL ADVICE SUGGESTS THAT A PERSON IN HIS INDIVIDUAL CAPACITY OR A PERSON ACTING ON BEHALF OF AN ORGANISATION WILL NOT NORMALLY BE HELD LIABLE FOR THE ACTIONS OF THE DEBT COLLECTING AGENTS COMMISSIONED BY HIM TO COLLECT DEBTS FOR HIM OR HIS ORGANISATION.

THE PERSON MAY, HOWEVER, BECOME CRIMINALLY LIABLE IF HE COUNSELS, PROCURES, AIDS OR ABETS THE AGENT TO COMMIT A CRIMINAL OFFENCE.

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/12 ........

WEDNESDAY, MARCH 10, 1993

- 12

PUBLIC RELUCTANT TO REPORT LOANSHARKING ACTIVITIES *****

THE MAIN PROBLEM WHICH THE POLICE FACE IN COMBATTING LOANSHARKING IS THE RELUCTANCE OF THE PUBLIC TO REPORT CASES TO THEM, THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY DR THE HON TANG SIU-TONG, MR ASPREY SAID THE ORGANISED AND SERIOUS CRIMES BILL, WHEN ENACTED, SHOULD PROVIDE MORE EFFECTIVE POWERS TO THE POLICE TO TACKLE LOANSHARKING, AND HEAVIER PENALTIES FOR THOSE CONVICTED OF LOANSHARKING OFFENCES, INCLUDING CONFISCATION OF THE PROCEEDS OF SUCH CRIMES.

AT PRESENT, THE MAXIMUM PENALTY FOR THE OFFENCE OF LENDING MONEY AT AN EXCESSIVE INTEREST RATE IS A FINE OF $100,000 AND IMPRISONMENT FOR TWO YEARS.

THE SECRETARY SAID THE POLICE AND HOUSING DEPARTMENT STAFF HAD TAKEN A NUMBER OF MEASURES TO PREVENT LOANSHARKING ACTIVITIES IN NEWLY COMPLETED PUBLIC HOUSING ESTATES.

THE POLICE COMMUNITY RELATIONS OFFICERS LIAISE CLOSELY WITH COMMUNITY ORGANISATIONS TO WARN OF THE DANGERS OF BORROWING FROM LOANSHARKS, AND TO ENCOURAGE RESIDENTS TO REPORT LOANSHARKING CASES TO THE POLICE.

AT BRIEFINGS FOR NEW TENANTS OF HOUSING ESTATES, THE DANGER POSED BY LOANSHARKS IS HIGHLIGHTED.

ESTATE STAFF ALSO PROVIDE HELP TO THE POLICE IN OPERATIONS AGAINST LOANSHARKS, HE SAID.

MR ASPREY SAID INTELLIGENCE COLLECTED BY THE POLICE ABOUT LOANSHARKING SYNDICATES IN TUEN MUN AND YUEN LONG HAD INDICATED THAT THE PROBLEM IN THESE AREAS WAS NOT DETERIORATING, ALTHOUGH IT WOULD NOT BE DESCRIBED AS BEING UNDER CONTROL.

IN THE PAST TWO YEARS, THE POLICE HAVE RECEIVED 12 REPORTS OF LOANSHARKING IN TUEN MUN AND FIVE IN YUEN LONG. TWO CASES IN TUEN MUN WERE PROSECUTED.

HOWEVER, BECAUSE OF THE LACK OF EVIDENCE, THE THREE DEFENDANTS IN THESE TWO CASES WERE ACQUITTED. ALL OF THE REPORTS IN YUEN LONG WERE ANONYMOUS AND COULD NOT BE PURSUED.

APART FROM INVESTIGATING ALL REPORTS RECEIVED, THE POLICE ALSO TAKE THE INITIATIVE TO MOUNT SPECIAL UNDERCOVER OPERATIONS AGAINST LOANSHARKS, MR ASPREY SAID.

BUT THE EFFECTIVENESS OF THESE OPERATIONS WAS AGAIN HAMPERED BY THE RELUCTANCE OF THE PUBLIC TO GIVE EVIDENCE FOR INVESTIGATION AND PROSECUTION.

-----0------

/13 ........

WEDNESDAY, MARCH 10, 1993

- 13

RELOCATION OF COMPANIES DOES NOT AFFECT ECONOMIC DEVELOPMENT

******

THE GOVERNMENT BELIEVES THAT THE RELOCATION OUTSIDE HONG KONG OF THE NON-PRODUCTION DEPARTMENTS OF HONG KONG COMPANIES OR FACTORIES WILL NOT ADVERSELY AFFECT HONG KONG’S ECONOMIC DEVELOPMENT, THE SECRETARY FOR TRADE AND INDUSTRY, MR T H CHAU, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY THE HON LAU CHIN-SHEK, MR CHAU SAID THE RELOCATION OF SOME LABOUR-INTENSIVE NON-PRODUCTION ACTIVITIES MIGHT HELP TO MAINTAIN HONG KONG’S COMPETITIVENESS.

THROUGH A LIMITED EASING OF THE CONSTRAINT ENGENDERED BY THE SHORT SUPPLY OF LOCAL LABOUR, IT MIGHT ALSO HELP HONG KONG’S ECONOMIC DEVELOPMENT, MR CHAU SAID.

THE SECRETARY SAID THE GOVERNMENT DID NOT CONSIDER THAT THE LOCAL LABOUR MARKET WOULD BE ADVERSELY AFFECTED BY SUCH RELOCATION. HONG KONG’S UNEMPLOYMENT RATE REMAINS VERY LOW BY WORLD STANDARDS.

"THERE IS STEADY GROWTH IN EMPLOYMENT OPPORTUNITIES IN THE SERVICES SECTOR OF THE ECONOMY AND THERE ARE CONSIDERABLE VACANCIES IN MANY SECTORS OF THE ECONOMY," HE SAID.

THUS, THE GOVERNMENT, IN PARTNERSHIP WITH THE PRIVATE SECTOR, IS CONTINUING TO IMPROVE THE EFFICIENCY OF HONG KONG LABOUR FORCE THROUGH EDUCATION AND TRAINING PROGRAMMES SO AS TO SOLVE - AT LEAST PARTIALLY - THE PROBLEM OF SHORTAGE OF LABOUR, HE ADDED.

--------0-----------

RAIL COMPANIES COMMITTED TO LOCALISATION POLICY *****

MASS TRANSIT RAILWAY CORPORATION AND KOWLOON-CANTON RAILWAY CORPORATION ARE COMMITTED IN PRINCIPLE TO A POLICY OF LOCALISATION THE CHIEF SECRETARY, THE HON SIR DAVID FORD, SAID TODAY (WEDNESDAY) ’

EXPATRIATE EMPLOYEES ARE NOT FORCED TO MAKE WAY FOR LOCAL SUCCESSORS, BUT WHEN THEY LEAVE THE CORPORATIONS, EFFORTS ARE MADE TO REPLACE THEM WITH LOCAL EMPLOYEES, SUBJECT TO THE LATTER HAVING THE NECESSARY SKILLS AND EXPERIENCE, HE SAID.

INTERNAL TRAINING PROGRAMMES ARE IN PLACE IN BOTH CORPORATIONS TO INCREASE THE PACE OF THE DEVELOPMENT OF LOCAL EMPLOYEES AS PART OF THEIR CAREER DEVELOPMENT AND SUCCESSION PLANNING, SIR DAVID ADDED.

REPLYING TO A QUESTION BY DR THE HON SAMUEL WONG IN THE LEGISLATIVE COUNCIL, THE CHIEF SECRETARY EXPLAINED THAT STATUTORY BODIES ESTABLISHED BY THE GOVERNMENT TO CARRY OUT SPECIFIC FUNCTIONS WERE EMPOWERED TO APPOINT THEIR OWN STAFF AND DETERMINE THEIR OWN EMPLOYMENT POLICY.

/SIR DAVID .......

WEDNESDAY, MARCH 10, 1993

- 14 -

SIR DAVID SAID THE OBJECTIVE MUST BE TO APPOINT THE BEST CANDIDATE AVAILABLE FOR THE RELEVANT JOB.

"THAT SAID, THE GOVERNMENT CERTAINLY LIKES TO SEE THESE BODIES GIVING PRIORITY TO SUITABLE QUALIFIED LOCAL CANDIDATES WHERE AVAILABLE," HE SAID.

--------0------------

GOVT TO SEEK FUNDS FOR HAEMOPHILIACS *****

THE GOVERNMENT IS TO SEEK FUNDS TO HELP THOSE HAEMOPHILIACS WHO CONTRACTED HIV THROUGH TRANSFUSION OF BLOOD AND BLOOD PRODUCTS BEFORE 1985, IRRESPECTIVE OF WHETHER THEY WERE INFECTED THROUGH TRANSFUSION IN GOVERNMENT HOSPITALS.

IN A WRITTEN REPLY TO A QUESTION BY THE HON DAVID LI IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, EXPRESSED GREAT SYMPATHY FOR THESE PATIENTS.

SHE NOTED THAT THE GOVERNMENT HAD PROPOSED TO SET UP A SPECIAL FUND WITH $350 MILLION FOR PROVIDING, AMONG OTHER THINGS EX-GRATIA PAYMENTS FOR THEM.

’’THE FUND WILL BE ADMINISTERED UNDER TRUST BY A SPECIAL COUNCIL TO BE APPOINTED BY THE GOVERNOR,” MRS WONG SAID.

"A SUBMISSION FOR ALLOCATION OF FUNDS WILL BE PUT TO THE FINANCE COMMITTEE OF THIS COUNCIL AT ITS NEXT REGULAR MEETING,” SHE ADDED.

-----0-----

CMB SERVICE CLOSELY MONITORED

*****

THE TRANSPORT DEPARTMENT IS CLOSELY MONITORING THE SERVICES OF CHINA MOTOR BUS COMPANY LIMITED.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, IN A WRITTEN REPLY TO A QUESTION BY DR THE HON HUANG CHEN-YA, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR LEUNG SAID CMB WAS REQUIRED UNDER THE PUBLIC BUS SERVICES ORDINANCE TO MAINTAIN A PROPER AND EFFICIENT PUBLIC BUS SERVICE TO THE SATISFACTION OF THE COMMISSIONER FOR TRANSPORT DURING THE TERM OF ITS CURRENT FRANCHISE.

/•'THIS COMMITMENT.......

WEDNESDAY, MARCH 10, 1993

- 15 -

"THIS COMMITMENT IS REINFORCED BY CMB’S NEW FRANCHISE EFFECTIVE FROM SEPTEMBER 1993 REQUIRING CMB TO CONTINUE TO COMPLY WITH SUCH OBLIGATIONS RELATING TO ALL ITS SERVICES, INCLUDING AND UP TO THE DATE OF TRANSFER OF THE 26 ROUTES TO CITYBUS LIMITED.

"FAILURE TO DO SO RENDERS THE COMPANY LIABLE TO FINANCIAL PENALTY UNDER THE PROVISIONS OF THE ORDINANCE," HE SAID.

MR LEUNG SAID CENTRAL TO THE MONITORING PROCESS OF CMB WERE REGULAR SURVEYS CONDUCTED BY THE DEPARTMENT TO MONITOR THE BUS TURNOUT, OCCUPANCY, AND FREQUENCY ON ALL THE ROUTES.

"RESULTS SO FAR INDICATE THAT WHILST THERE HAS BEEN SOME SHORTAGE OF BUSES ON OTHER ROUTES WHERE CMB HAS BEEN ASKED TO RECTIFY, THERE HAS BEEN NO DELIBERATE WITHDRAWAL OF BUSES FROM ANY ONE OF THE 26 ROUTES."

"THE TRANSPORT DEPARTMENT WILL CONTINUE TO CONDUCT SURVEYS, WITH SPECIAL EMPHASIS ON THE 26 ROUTES OVER THE NEXT FEW MONTHS AT MORE FREQUENT INTERVALS UNTIL THEY ARE TAKEN OVER BY CITYBUS IN SEPTEMBER.

"ANY SERVICE DEFICIENCY IDENTIFIED DURING THESE SURVEYS OR OBSERVED BY DISTRICT BOARDS AND THE COMMUTING PUBLIC WILL CONTINUE TO BE PROMPTLY DEALT WITH AND RECTIFIED," HE SAID.

--------0-----------

CHINESE POLITICAL SYSTEM COVERED IN SCHOOL CURRICULUM *****

THE CHINESE POLITICAL SYSTEM IS NOT TAUGHT AS AN INDEPENDENT SUBJECT IN SCHOOLS BUT ELEMENTS OF THE SYSTEM ARE INCLUDED IN THE SCHOOL CURRICULUM AT BOTH PRIMARY AND SECONDARY LEVELS, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID TODAY (WEDNESDAY).

HE SAID PUPILS’ CONCEPTS AND UNDERSTANDING OF THE CHINESE POLITICAL SYSTEM WERE STRENGTHENED PROGRESSIVELY FROM A BASIC UNDERSTANDING OF THE GROWTH AND DEVELOPMENT OF THE CHINESE NATION TO A MORE IN-DEPTH STUDY OF THE EXISTING POLITICAL STRUCTURE AND SYSTEM IN CHINA AND THE RELATIONSHIP BETWEEN CHINA AND THE FUTURE HONG KONG SPECIAL ADMINISTRATIVE REGION (SAR).

MR CHAN SAID TOPICS RELATING TO THE CHINESE POLITICAL SYSTEM WERE ALREADY INCLUDED IN THE FORMAL CURRICULUM OF THE SUBJECT SOCIAL STUDIES IN THE PRIMARY 5 LEVEL, AND IN CHINESE HISTORY, HISTORY, SOCIAL STUDIES, ECONOMIC AND PUBLIC AFFAIRS, GOVERNMENT AND PUBLIC AFFAIRS, AND LIBERAL STUDIES IN VARIOUS LEVELS IN SECONDARY SCHOOL.

IN A WRITTEN REPLY TO A QUESTION BY THE HON STEVEN POON IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), HE SAID A NEW SUBJECT "GENERAL STUDIES" WAS BEING DEVELOPED FOR THE PRIMARY CURRICULUM.

/"IT WILL ........

WEDNESDAY, MARCH 10, 1993

16

"IT WILL EMBODY BASIC KNOWLEDGE OF THE CHINESE POLITICAL SYSTEM AS WELL AS THE RELATIONSHIP BETWEEN CHINA AND THE FUTURE HONG KONG SAR. ’’

APART FROM THE TOPICS INCLUDED IN THE FORMAL SCHOOL CURRICULUM, MR CHAN SAID PUPILS MIGHT ACQUIRE A BETTER UNDERSTANDING OF THE CHINESE POLITICAL SYSTEM THROUGH SUCH CROSS-CURRICULAR CIVIC EDUCATION PROGRAMMES AS "THE INDIVIDUAL AND THE NATION", AND "THE INDIVIDUAL AND SOCIETY" AS DESCRIBED IN THE "GUIDANCES ON CIVIC EDUCATION IN SCHOOLS" PRODUCED BY THE EDUCATION DEPARTMENT.

THE CURRICULUM DEVELOPMENT INSTITUTE OF THE EDUCATION DEPARTMENT WILL ALSO CONTINUE TO REVIEW THE SCHOOL CURRICULUM TO KEEP PACE WITH THE CHANGING NEEDS OF THE COMMUNITY AND TO REINFORCE PUPILS’ UNDERSTANDING OF THE DEVELOPMENT OF THE POLITICAL SYSTEMS IN CHINA AND HONG KONG.

------0-------

FIRECRACKERS BAN TO STAY

*****

THE GOVERNMENT HAS DECIDED THAT THE CURRENT RESTRICTIONS ON FIRECRACKERS SHOULD BE MAINTAINED IN THE INTERESTS OF PUBLIC SAFETY, THE SECRETARY FOR RECREATION AND CULTURE, MR JAMES SO, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY THE HON GILBERT LEUNG KAM-HO, MR SO SAID THE DANGERS OF ALLOWING EASY INDIVIDUAL ACCESS TO FIRECRACKERS HAD BECOME A MATTER OF INCREASING CONCERN WORLDWIDE.

"EVERY YEAR, MANY PEOPLE - PARTICULARLY CHILDREN - SUFFER SERIOUS BURNS AND OTHER INJURIES THROUGH MISHANDLING OF FIREWORKS AND FIRECRACKERS," HE POINTED OUT.

THE EXISTING CONTROLS ON THE DISCHARGE OF FIRECRACKERS AND DISPLAY OF FIREWORKS WERE IMPOSED IN 1967.

THE BAN ON THE PUBLIC DISPLAY OF FIREWORKS WAS FIRST RELAXED IN 1975 FOR THE CELEBRATION OF THE ROYAL VISIT.

THIS POLICY WAS FURTHER REVISED IN 1982, WHEN THE GOVERNOR IN COUNCIL DECIDED THAT DISPLAYS OF FIREWORKS COULD BE HELD ON APPROPRIATE CHINESE FESTIVAL DAYS AS WELL AS ON OCCASIONS OF IMPORTANCE TO HONG KONG.

MORE RECENTLY, THE BAN HAS BEEN FURTHER RELAXED TO ALLOW THE USE OF PYROTECHNICS FOR FILM AND TELEVISION PROGRAMME PRODUCTIONS AS WELL AS FOR THEATRICAL PERFORMANCES, SUBJECT TO PERMIT.

"OUR EXISTING REGULATIONS HAVE THUS SERVED US WELL IN PREVENTING HAZARDS FOR OVER 25 YEARS," MR SO SAID.

"DOING AWAY WITH THESE REGULATIONS, EVEN FOR DESIGNATED LOCATIONS, WOULD BE A RETROGRESSIVE STEP.

"WE HAVE, THEREFORE, CONCLUDED THAT, WHILE THE SECURITY CONSIDERATIONS MAY NO LONGER APPLY, IT REMAINS IN THE INTERESTS OF PUBLIC SAFETY TO MAINTAIN THE CURRENT RESTRICTIONS," HE STRESSED.

------0-------

/17 .....

WEDNESDAY, MARCH 10, 1993

- 17 -

PROMOTING HOME OWNERSHIP IS GOVT OBJECTIVE

*****

IT IS THE GOVERNMENT’S OBJECTIVE TO PROMOTE HOME OWNERSHIP FOR THOSE ELIGIBLE FOR PUBLIC HOUSING, THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN A WRITTEN REPLY TO A QUESTION BY DR THE HON CONRAD LAM, MR EASON EXPLAINED THAT UNDER THIS POLICY, THE MAIN CRITERIA USED TO DESIGNATE CERTAIN RENTAL BLOCKS FOR SALE WERE HOUSING MIX AND PROGRAMME BALANCE.

WHILE THE DEMAND FOR HOME OWNERSHIP (HOS) FLATS WAS LARGELY MET BY PLANNED PRODUCTION, HE SAID IT WAS SOMETIMES NECESSARY TO TRANSFER ONE OR TWO BLOCKS IN A RENTAL ESTATE FOR SALE TO ACHIEVE A BETTER MIX.

"THUS, SITTING AND PROSPECTIVE TENANTS, INCLUDING THOSE AFFECTED BY REDEVELOPMENT, CAN CHOOSE TO BUY IN THE SAME DISTRICT WHEN THEY CAN AFFORD TO DO SO," HE SAID.

THERE WERE ALSO OCCASIONS WHERE PROGRAMME ADJUSTMENT IN THE PRODUCTION OF SALE FLATS REQUIRED THE TRANSFER OF SOME RENTAL TYPE BLOCKS FOR SALE IN A PARTICULAR YEAR BUT THIS WAS DONE ONLY WHEN THE COMMITTED RENTAL DEMAND IN THE DISTRICT WAS SATISFIED, HE ADDED.

MR EASON SAID THE DESIGNATION OF RENTAL BLOCKS FOR SALE SHOULD NOT REDUCE THE OVERALL SUPPLY OF RENTAL UNITS ON A YEAR-ON-YEAR BASIS AS THE DESIGNATION WAS NOT NECESSARILY FOLLOWED BY A CORRESPONDING REDUCTION IN THE SUPPLY OF RENTAL FLATS IN PARTICULAR.

"AS SITTING TENANTS MOVE OUT AFTER BUYING HOS FLATS, THE RECOVERED UNITS ARE REFURBISHED AND ALLOCATED TO OTHER REHOUSING CATEGORIES, INCLUDING THE WAITING LIST," HE SAID.

IT SHOULD ALSO HAVE LITTLE EFFECT ON WAITING LIST APPLICANTS WITH AN EXPRESSED PREFERENCE FOR URBAN FLATS BECAUSE THE MAJORITY OF THE TRANSFER FLATS WERE OUTSIDE THE URBAN AREA.

0 --------

CAPACITY OF HK COLISEUM

*****

THE HONG KONG COLISEUM CAN STILL COPE WITH THE NUMBER OF PEOPLE AS ORIGINALLY PLANNED IN RELATION TO THE PRESENT-DAY SAFETY REQUIREMENTS, THE SECRETARY FOR WORKS, MR JAMES BLAKE, SAID.

IN A WRITTEN REPLY TO A QUESTION BY THE HON EDWARD HO IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MR BLAKE SAID THE DESIGNED SEATING CAPACITY OF THE COLISEUM RANGED FROM 10,545 TO 12,455 DEPENDING ON THE TYPE OF STAGE CONFIGURATION USED.

/IT HAD .......

WEDNESDAY, MARCH 10, 1993

IT HAD NEVER BEEN FILLED BEYOND THE DESIGNED CAPACITY SINCE ITS OPENING IN APRIL 1983.

HE SAID THE FIRE SERVICES INSTALLATIONS WERE APPROVED BY THE FIRE SERVICES DEPARTMENT (FSD) IN 1983 AND THEY WERE CONSIDERED ADEQUATE UNDER THE DEPARTMENT’S PRESENT-DAY REQUIREMENTS FOR NORMAL SPORTS EVENTS.

WHEN THE COLISEUM WAS USED FOR OTHER PERFORMANCES, THE OPERATORS WOULD HAVE TO APPLY FOR A LICENCE UNDER THE PLACES OF PUBLIC ENTERTAINMENT ORDINANCE.

UPON THE RECEIPT OF APPLICATIONS, THE AUTHORITY WOULD REFER THEM TO FSD FOR INSPECTIONS AND ADVICE ON FIRE SAFETY MATTERS, MR BLAKE SAID, ADDING THAT THE APPLICANT WOULD HAVE TO COMPLY WITH NECESSARY SAFETY REQUIREMENTS BEFORE A LICENCE WAS GRANTED.

"THIS ENSURES ALL PERFORMANCES AT THE COLISEUM WILL COMPLY WITH UP-TO-DATE FIRE SAFETY REQUIREMENTS," HE SAID.

THE COLISEUM WAS DESIGNED IN CONSULTATION WITH THE BUILDINGS ORDINANCE OFFICE TO ENSURE THAT IT ALSO COMPLIED WITH THE SAFETY REQUIREMENTS LAID DOWN IN THE BUILDINGS ORDINANCE.

- 0 -

ALL SECRETARY POSTS TO BE FILLED BY LOCAL OFFICERS BEFORE 1997 *****

THE SECRETARY FOR THE CIVIL SERVICE, MR BARRIE WIGGHAM, TODAY (WEDNESDAY) REASSURED LEGISLATIVE COUNCILLORS THAT ALL POLICY SECRETARY OR FUTURE PRINCIPAL OFFICIAL POSTS WOULD BE FILLED BY SUITABLE LOCAL OFFICERS, WHO COULD MEET THE JOINT DECLARATION AND BASIC LAW PROVISIONS, BEFORE 1997.

HE SAID THIS MIGHT REQUIRE A DEPARTURE FROM CURRENT POLICY AT SOME POINT IN ORDER TO GIVE PREFERENCE TO QUALIFIED LOCAL OFFICERS.

"IF THIS HAPPENS, ANY OVERSEAS OFFICER ADVERSELY AFFECTED WILL NEED TO BE COMPENSATED, THOUGH I EXPECT THE NUMBERS TO BE SMALL," HE ADDED.

IN A WRITTEN REPLY TO A QUESTION BY THE HON CHIM PUI-CHUNG IN THE LEGISLATIVE COUNCIL, MR WIGGHAM SAID OUT OF THE 15 POLICY SECRETARY POSTS, SEVEN WERE CURRENTLY FILLED BY OVERSEAS OFFICERS.

OF THEM, FOUR ARE LIKELY TO RETIRE BEFORE THE END OF 1995, ONE WILL COMPLETE HIS CONTRACT WITHIN THE SAME TIME SPAN, ONE IS LIKELY TO BE REQUIRED TO RETIRE BEFORE 1997 UNDER THE LIMITED COMPENSATION SCHEME, AND THE OTHER IS PRESENTLY FILLING A SECRETARY POST ON AN ACTING BASIS.

/ON THE

WEDNESDAY, MARCH 10, 1993

- 19

ON THE QUESTION WHY A RECENTLY VACATED POLICY SECRETARY POST WAS NOT FILLED BY A LOCAL OFFICER, MR WIGOHAM EXPLAINED THAT THE APPOINTMENT WAS MADE ON THE BASIS OF THE BEST OFFICER AVAILABLE FOR THE POST.

UNDER THE CURRENT POLICY, HE SAID, LOCAL AND OVERSEAS OFFICERS WERE BEING CONSIDERED ON EQUAL TERMS FOR ANY VACANCIES, CITING AS EXAMPLE TWO LOCAL OFFICERS WHO WOULD ASSUME POLICY SECRETARY DUTIES FOR THE FIRST TIME IN THE NEXT FEW MONTHS.

- - - - 0 - - - -

ENOUGH TEACHERS TO MEET DEMAND

*****

THERE SHOULD BE ENOUGH TEACHERS IN THE 1993/94 ACADEMIC YEAR TO MEET DEMAND ARISING FROM IMPROVEMENT MEASURES ANNOUNCED IN THE GOVERNOR’S POLICY ADDRESS AND RECOMMENDED IN EDUCATION REPORT NO. 5.

IN A WRITTEN REPLY TO A QUESTION BY THE HON TIE CHI-YUEN IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, ESTIMATED THAT 24,661 NON-GRADUATE AND 12,976 GRADUATE TEACHERS WOULD BE REQUIRED IN PUBLIC SECTOR PRIMARY AND SECONDARY SCHOOLS IN THE NEW ACADEMIC YEAR.

THESE FIGURES HAVE TAKEN INTO ACCOUNT THE ADDITIONAL 786 NONGRADUATE TEACHERS REQUIRED FOR THE IMPROVEMENT MEASURES AS WELL AS THE REDUCTION OF 324 TEACHERS DUE TO POPULATION CHANGE.

MEANWHILE, THE SUPPLY OF NON-GRADUATE AND GRADUATE TEACHERS IN PUBLIC SECTOR PRIMARY AND SECONDARY SCHOOLS IN 1993/94 IS EXPECTED TO BE 24,535 AND 12,657 RESPECTIVELY.

"THERE WOULD THEREFORE BE A THEORETICAL SHORTFALL OF 116 NON-GRADUATE AND 319 GRADUATE TEACHERS, REPRESENTING 0.6 AND 2.6 PER CENT RESPECTIVELY OF THE DEMAND," MR CHAN SAID.

"GIVEN THE SIZE OF THE TEACHING FORCE AND IN THE LIGHT OF EXPERIENCE IN THE PAST THREE YEARS WHEN VACANCIES AVERAGE ONE AND 3.6 PER CENT RESPECTIVELY, THE EDUCATION DEPARTMENT ESTIMATES THAT THERE SHOULD BE ENOUGH TEACHERS TO MEET DEMAND IN THE NEW ACADEMIC YEAR," HR ADDED.

MR CHAN ALSO NOTED THAT PRIVATE SCHOOLS WERE UNAFFECTED BY THE IMPROVEMENTS INVOLVING ADDITIONAL TEACHERS.

/20

WEDNESDAY, MARCH 10, 1993

- 20 -

FINAL REPORT ON CHINESE MEDICINE READY THIS YEAR *****

THE WORKING PARTY ON CHINESE MEDICINE IS EXPECTED TO SUBMIT ITS FINAL RECOMMENDATIONS TO THE GOVERNMENT THIS YEAR, THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN HER WRITTEN REPLY TO A QUESTION BY DR THE HON PHILIP WONG, MRS WONG SAID SINCE THE PUBLICATION OF ITS INTERIM REPORT LAST YEAR, THE WORKING PARTY HAD RECEIVED MORE THAN 200 REPRESENTATIONS FROM PROFESSIONALS, PROFESSIONAL AND COMMUNITY ORGANISATIONS AND MEMBERS OF THE PUBLIC.

"IT HAS STUDIED THE VIEWS RECEIVED AND IS NOW FINALISING ITS RECOMMENDATIONS," MRS WONG SAID.

"IT IS EXPECTED THAT THE FINAL REPORT OF THE WORKING PARTY WILL BE SUBMITTED TO THE ADMINISTRATION WITHIN THIS YEAR," SHE ADDED.

------0-------

TALKS ON RELOCATION OF CEMENT PLANT UNDER WAY *****

PROGRESS IN THE NEGOTIATIONS BETWEEN THE GOVERNMENT AND THE OWNER OF THE HONG KONG CEMENT PLANT ON TSING YI FOR ITS RELOCATION TO A NEW SITE ON THE NORTH COAST HAS BEEN ENCOURAGING AND THE GOVERNMENT HOPES TO FINALISE AN AGREEMENT IN THE NEXT FEW MONTHS.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY THE HON LEE WING-TAT IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

HE SAID SUBJECT TO THE AGREEMENT BEING REACHED, THE EXISTING PLANT WOULD BE DECOMMISSIONED IN 1996.

MR EASON NOTED THAT THE PROCESS OF RELOCATING SUCH PLANTS INVOLVED WIDE-RANGING PROBLEM IDENTIFICATION AND RESOLUTION SUCH AS IDENTIFYING A SUITABLE NEW SITE AND NEGOTIATING THE DETAILS OF A MUTUALLY ACCEPTABLE AGREEMENT WITH THE OWNER.

HE ASSURED THE COUNCILLORS THAT THE KWAI TSING DISTRICT BOARD AND ITS ENVIRONMENT AND PLANNING SUB-COMMITTEE HAD BEEN AND WOULD CONTINUE TO BE KEPT INFORMED OF THE RELOCATION PROPOSAL.

"UNTIL THE PLANT IS REMOVED, THE ADMINISTRATION WILL CONTINUE TO TAKE STRICT ENFORCEMENT ACTION TO MINIMISE AS FAR AS PRACTICABLE THE DUST AND NOISE NUISANCES," HE SAID, ADDING THAT FURTHER ENFORCEMENT ACTION WOULD BE TAKEN WHENEVER NECESSARY.

--------0-----------

Z21 .........

WEDNESDAY, MARCH 10, 1993

21 SUPPORT FOR LIFTING EMBARGO AGAINST VIETNAM ******

THE SECRETARY FOR SECURITY, MR ALISTAIR ASPREY, SAID TODAY (WEDNESDAY) THAT THE BRITISH GOVERNMENT HAD PUBLICLY EXPRESSED ITS SUPPORT FOR A LIFTING OF THE EMBARGO AGAINST THE INTERNATIONAL MONETARY FUND AND WORLD BANK PROVIDING FINANCIAL SUPPORT FOR VIETNAM.

IT HAS ALSO SHOWN SUPPORT FOR NORMALISATION OF VIETNAM’S RELATIONS WITH THE INTERNATIONAL FINANCIAL INSTITUTIONS, HE SAID.

IN A WRITTEN REPLY TO A QUESTION BY THE HON MARTIN BARROW IN THE LEGISLATIVE COUNCIL, MR ASPREY SAID THE BRITISH GOVERNMENT WOULD CONTINUE TO PRESS FOR THIS.

--------0-----------

GOVT ENCOURAGES STUDENT ASSOCIATIONS

*****

THE EDUCATION DEPARTMENT ACTIVELY ENCOURAGES SCHOOLS TO SET UP STUDENT ASSOCIATIONS AS A MEANS OF DEVELOPING THE STUDENTS’ SENSE OF RESPONSIBILITY, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID.

THIS ALSO ENHANCES THEIR SOCIAL AND POLITICAL AWARENESS, HE ADDED.

IN A WRITTEN REPLY TO A QUESTION BY THE HON LAU CHIN-SHEK IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MR CHAN SAID IT WAS NOT CONSIDERED NECESSARY TO PROVIDE SCHOOLS WITH SEPARATE FUNDS FOR THIS PURPOSE.

"EACH SECONDARY SCHOOL IN THE PUBLIC SECTOR IS GIVEN A SCHOOL AND CLASS GRANT, AMOUNTING TO $400,000 A YEAR FOR A STANDARD-CLASS SCHOOL, TO COVER THE COST OF EXTRACURRICULAR ACTIVITIES, INCLUDING THE SETTING UP OF STUDENT ASSOCIATIONS," HE SAID.

THE EDUCATION DEPARTMENT ALSO MAKES AVAILABLE AT ITS CIVIC EDUCATION RESOURCE CENTRES REFERENCE MATERIALS TO HELP TEACHERS IN ADVISING THEIR STUDENTS ON THE OPERATION OF STUDENT ASSOCIATIONS.

THERE ARE AT PRESENT 198 SECONDARY SCHOOLS WITH STUDENT ASSOCIATIONS.

0----------

/22 ........

WEDNESDAY, MARCH 10, 1993

22

ALTERNATIVE EMPLOYMENT FOR DISPLACED HANDICAPPED WORKERS *****

MANY OF THE HANDICAPPED WORKERS WHO HAVE BEEN DISPLACED AS A RESULT OF OFFICE AUTOMATION AND MOVING OF FACTORIES ACROSS THE BORDER HAVE FOUND ALTERNATIVE EMPLOYMENT IN THE GROWING SERVICE INDUSTRIES, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID.

IN A WRITTEN REPLY TO A QUESTION BY THE HON MRS ELSIE TU IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), MR CHAN SAID THE MAIN LOSS OF JOBS FOR DISABLED WORKERS DUE TO OFFICE AUTOMATION HAD BEEN IN RESPECT OF BLIND TELEPHONISTS.

"TO ASSIST THOSE AFFECTED TO SEEK ALTERNATIVE EMPLOYMENT, THE VOCATIONAL TRAINING COUNCIL (VTC) HAS CHANGED ITS TELEPHONE OPERATOR COURSE TO AN OFFICE RECEPTION COURSE WHICH INCORPORATES TRAINING IN COMPUTER SKILLS RELATED TO OFFICE PRACTICE," HE SAID.

"THESE ADDITIONAL SKILLS, WHEN USED IN CONJUNCTION WITH SPECIAL TECHNICAL AIDS FOR THE VISUALLY IMPAIRED, WILL ENABLE THEM TO PERFORM A WIDER RANGE OF DUTIES."

MR CHAN SAID THE VTC HAD ALSO INTRODUCED GENERAL SERVICES COURSES FOR THE MENTALLY DISABLED WHO, UPON GRADUATION, GENERALLY HAD NO PROBLEM IN FINDING EMPLOYMENT IN AREAS SUCH AS CLEANING, FAST FOOD, GENERAL OFFICE WORK AND MESSENGERIAL SERVICE.

IN ADDITION, THE SELECTIVE PLACEMENT DIVISION OF THE LABOUR DEPARTMENT, IN CONJUNCTION WITH THE VTC AND THE REHABILITATION DEVELOPMENT CO-ORDINATING COMMITTEE, CONTINUES TO PROVIDE COUNSELLING, ASSESSMENT AND PLACEMENT SERVICES AND EXPLORE NEW EMPLOYMENT AVENUES FOR THE DISABLED.

OF THE 2,705 DISABLED WORKERS WHO APPLIED TO THE DIVISION FOR JOBS LAST YEAR, 1,366 HAD BEEN SUCCESSFULLY PLACED IN JOBS COMPATIBLE WITH THEIR ABILITY AND APTITUDE.

MR CHAN ALSO NOTED THAT EMPLOYERS WHO WISHED TO MAKE THE NECESSARY OFFICE ADAPTATION TO ACCOMMODATE DISABLED PERSONS WOULD BE GIVEN FINANCIAL ASSISTANCE AND TECHNICAL ADVICE UNDER AN EMPLOYAID SCHEME FUNDED BY THE COMMUNITY CHEST.

--------0------------

WAYS TO TACKLE CAR REPAIR WORKSHOP POLLUTION

*****

A STUDY ON THE PLANNING FOR VEHICLE REPAIR WORKSHOPS, WHICH WILL BE COMPLETED IN MID-1993, WOULD ENABLE THE ADMINISTRATION TO DEVISE A STRATEGY TO DEAL WITH THE ENVIRONMENTAL PROBLEMS CAUSED BY VEHICLE REPAIR WORKSHOPS.

THIS WAS STATED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN A WRITTEN REPLY TO A QUESTION BY THE HON TAM YIU-CHUNG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

/MR EASON .......

WEDNESDAY, MARCH 10, 1993

- 23 -

MR EASON SAID THE ENVIRONMENTAL PROBLEMS NORMALLY ASSOCIATED WITH THESE WORKSHOPS LOCATED ON THE GROUND FLOOR OF DOMESTIC PREMISES WERE NOISE AND AIR POLLUTION.

HE SAID NOISE POLLUTION FROM ACTIVITIES OF THESE WORKSHOPS SUCH AS HAMMERING, GRINDING AND WELDING OF CAR BODIES, MAINTENANCE AND TESTING OF ENGINES WERE DEALT WITH UNDER THE NOISE CONTROL ORDINANCE WHILE AIR POLLUTION WHICH COMPRISED MAINLY ODOUR OF PAINT MIST WAS COVERED BY THE AIR POLLUTION CONTROL ORDINANCE.

LEASE ENFORCEMENT ACTION COULD BE TAKEN AGAINST THOSE WORKSHOPS IF THEY WERE OPERATING IN PREMISES WHERE INDUSTRIAL USE WAS NOT PERMITTED UNDER THE LEASE CONDITIONS.

MEASURES HAD ALSO BEEN TAKEN TO DEVELOP INDUSTRIAL BUILDINGS TO PROVIDE ACCOMMODATION FOR THEM.

--------0-----------

MOTION ON POLITICAL APPOINTMENT OF PRINCIPAL OFFICIALS DEFEATED ♦ ♦ ♦ t *

THE MOTION ON POLITICAL APPOINTMENT OF PRINCIPAL GOVERNMENT OFFICIALS, MOVED BY THE HON ANDREW WONG, WAS DEFEATED AFTER AN ONE-HOUR DEBATE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

A TOTAL OF 10 LEGISLATIVE COUNCILLORS SPOKE ON THE MOTION. WINDING UP THE DEBATE WAS THE SECRETARY FOR THE CIVIL SERVICE, MR BARRIE WIGGHAM.

ANOTHER MOTION ON NATIONALITY OF ETHNIC MINORITIES PROPOSED BY THE HON EMILY LAU WAS PASSED. EIGHT MEMBERS SPOKE IN THE 45-MINUTE DEBATE.

TEN MEMBERS SPOKE IN AN ADJOURNMENT DEBATE ON WIFE ABUSE RAISED BY THE HON MOSES CHENG.

A MOTION UNDER PUBLIC FINANCE ORDINANCE MOVED BY THE SECRETARY FOR THE TREASURY WAS PASSED.

ALSO PASSED WAS THE MOTION UNDER MAGISTRATES ORDINANCE MOVED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS.

THREE BILLS WERE PASSED. PARENT AND CHILD BILL AND TRADING FUNDS BILL WERE PASSED WITH AMENDMENTS. AUDIT (AMENDMENT) BILL 1993 WAS PASSED WITHOUT AMENDMENT.

0

*

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

THURSDAY, MARCH 11, 1993

CONTENTS PAGE NO,

GOVT TO IMPROVE PUBLIC WORKS PERFORMANCE ........................ 1

EXCHANGE FUND INVESTMENT APPROACH UNDER REVIEW .................. 3

HK'S EXTERNAL TRADE STATISTICS FOR JANUARY ...................... 4

GOVT SUPPORTS R&D .............................................  12

REVIEW SUGGESTS INCLUSION OF VISUAL AND LITERARY ARTS IN GOVT SCOPE ......................................................... 13

RELEASE OF ARTS POLICY REVIEW REPORT FOR PUBLIC CONSULTATION 15

HUMAN RIGHTS PROMOTION CONTINUES ............................... 15

AIDS EDUCATION SEMINAR ON SATURDAY ............................. 16

NEW MEMBERS TO YOUTH COMMISSION ................................ 17

COMMUNITY TREE PLANTING BEGINS ON SUNDAY ....................... 18

FS PRESENTS LUCKY CAR NUMBER TO SUCCESSFUL BIDDER .............. 19

TRAFFIC BAN AT TSEUNG KWAN O CEMETERY .......................... 20

NEW QUEEN'S COUNSEL TO BE NAMED NEXT MONTH ..................... 20

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS ..

21

THURSDAY, MARCH 11, 1993

1

GOVT TO IMPROVE PUBLIC WORKS PERFORMANCE

* * » * *

THE GOVERNMENT, WITH NEW MEASURES TAKEN AND PLANNED, IS DETERMINED TO PERFORM MORE EFFECTIVELY IN THE IMPLEMENTATION OF THE PUBLIC WORKS PROGRAMME.

THIS WAS STATED BY THE SECRETARY FOR WORKS, MR JAMES BLAKE AT A PRESS CONFERENCE TODAY WHICH WAS ALSO ATTENDED BY THE DIRECTOR OF THE NEW AIRPORT PROJECTS CO-ORDINATION OFFICE, MR GORDON SIU, AND THE DEPUTY SECRETARY FOR WORKS (PLANNING AND RESOURCES), MISS ELAINE CHUNG.

MR BLAKE SAID HE HAS BEEN GIVEN FULL AUTHORITY FOR THE IMPLEMENTATION OF THE PUBLIC WORKS PROGRAMME AND WOULD WORK CLOSELY WITH THE PUBLIC WORKS PROGRESS COMMITTEE (PWPC) WHICH HAS BEEN COMPLETELY REORGANISED.

UNDER HIS CHAIRMANSHIP, THE HIGH-LEVEL COMMITTEE WILL INCLUDE THE SECRETARY FOR THE TREASURY, SECRETARY FOR TRANSPORT, SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS AND SECRETARY FOR ECONOMIC SERVICES AS MEMBERS REPORTING DIRECTLY TO THE FINANCIAL SECRETARY.

MR BLAKE SAID THE PWPC WOULD BE SUPPORTED BY DIRECTORS OF THE WORKS DEPARTMENTS AND OTHERS WHO HAVE BEEN MEETING REGULARLY SINCE APRIL 1992 TO MONITOR PUBLIC WORKS ITEMS AND TO RESOLVE PROBLEMS OF INTERFACE, PRIORITIES AND RESOURCES WHICH OFTEN BESET THE IMPLEMENTATION.

"I ALSO INTEND TO SET UP A SMALL PANEL OF EXPERTS DRAWN FROM THE PRIVATE SECTOR TO ADVISE THE PWPC ON HOW TO IMPROVE WORKS PROCEDURES AND PRACTICES BASED ON THEIR EXPERIENCE AND KNOWLEDGE IN THE PRIVATE SECTOR.

"THE CONSTRUCTION ADVISORY BOARD, WHICH IS BEING SET UP SEPARATELY, CAN ALSO MAKE CONTRIBUTIONS TO THE PWPC UNDER ITS BROAD TERMS OF REFERENCE."

"WE ARE ALSO IN THE PROCESS OF APPOINTING CONSULTANTS TO HELP DEVELOP A COMPREHENSIVE COMPUTER-BASED INFORMATION AND MANAGEMENT SYSTEM WHICH WILL PROVIDE UP-TO-DATE INFORMATION FOR THE PURPOSE OF MONITORING THE PROGRESS OF THE PUBLIC WORKS PROGRAMME.

"THE CONSULTANTS WILL ALSO REVIEW THE EXISTING HIERARCHY, ORGANISATIONAL STRUCTURE, ESTABLISHMENT AND ’CULTURE’ OF THE WORKS GROUP OF DEPARTMENTS AND ITS LINKAGE WITH FINANCE BRANCH AND OTHER POLICY BRANCHES.

"THEIR RECOMMENDATIONS WILL BE IMPLEMENTED AS SOON AS THEY ARE ACCEPTED BY THE GOVERNMENT," MR BLAKE SAID.

THE NEW INITIATIVES AND MEASURES OUTLINED ABOVE ARE A CONTINUATION OF THE EFFORTS MADE IN THE PAST YEAR TO IMPROVE THE EFFICIENCY OF THE VARIOUS GOVERNMENT DEPARTMENTS WORKING AS A TEAM TO IMPLEMENT THE PUBLIC WORKS PROGRAMME.

MR BLAKE SAID THE ORIGINAL PUBLIC WORKS PROGRESS COMMITTEE WAS FIRST SET UP TN APRIL 1992 TO MONITOR THE PROGRESS OF WORKS.

/"SINCE THEN .......

THURSDAY, MARCH 11, 1993

2

’’SINCE THEN, THE COMMITTEE HAS BEEN LOOKING AT PROJECTS MADE UP OF 80 PER CENT IN VALUE IN THE PUBLIC WORKS PROGRAMME.

’’THIS MEANS SOME 200 PROJECTS ARE BEING LOOKED AT IN DETAIL. ANY ADVERSE TRENDING TOWARDS DELAYS IN WORKS OR DEVIATIONS FROM THE SPENDING TARGETS IS HIGHLIGHTED FOR CORRECTIVE ACTION.

’’THE RESULTS ARE VERY ENCOURAGING. ABOUT 75 PER CENT OF THE PROJECTS VETTED BY THE COMMITTEE ARE FORECAST AS FINISHING ON TIME AND 95 PER CENT ARE FORECAST WITHIN BUDGET.

’’DELAYS IN COMPLETION MUST BE ACCOUNTED FOR WITH FACTORS SUCH AS WEATHER OR PHYSICAL CONDITIONS BEING THE MOST COMMON REASONS.

"WE WILL EXTEND THIS MONITORING PROCESS TO PROJECTS CURRENTLY UNDER PLANNING AND DESIGN TO ENSURE THAT THE TARGETS FOR COMPLETING COMMUNITY PROJECTS ARE REALISTIC IN THE FIRST PLACE AND ADHERED TO ONCE APPROVED.

’’DURING 1992, CLOSE ATTENTION WAS GIVEN TO IMPROVING THE EXPENDITURE FORECASTING TECHNIQUES TO ENHANCE RELIABILITY.

’’SENIOR STAFF OF WORKS DEPARTMENTS HAVE BEEN FULLY THIS PROCESS BY WAY OF INTERNAL WORKSHOPS AND OTHER DISSEMINATE INFORMATION ON THE LATEST FORECASTING METHODS

BROUGHT INTO

CONTACTS TO AND SYSTEMS.

REFERRING TO THE UNDERSPENDING FOR 1992/93, MR BLAKE SAID THE FIGURE OF UNDERSPENDING ON PUBLIC WORKS WAS FORECAST TO BE $3.6 BILLION.

THIS FIGURE TAKES INTO ACCOUNT SAVINGS BROUGHT ABOUT BY LOWER TENDER PRICES, UNUSED CONTINGENCY FUNDS AS WELL AS UNDERSPENDING FOR LAND RESUMPTION.

OF THE $3.6 BILLION IN UNDERSPENDING, $1.6 BILLION WAS ATTRIBUTABLE TO CHANGES IN PROGRAMME PRIORITIES BEFORE TENDERS WERE CALLED.

’’DELAY IN PROGRESS OF WORKS ACCOUNTED FOR $0.9 BILLION AND DELAYS DUE TO ADMINISTRATIVE AND STATUTORY PROCEDURES ACCOUNTED FOR $1.1 BILLION.

"WE ARE NOT COMPLACENT WITH THE $3.6 BILLION UNDERSPENDING. BUT, WHEN WE LOOK BACK AT THE 1991/92 UNDERSPENDING FIGURE OF $6.6 BILLION CALCULATED ON THE SAME BASIS, IT CLEARLY SHOWS THAT THE MEASURES WE PUT IN PLACE LAST YEAR ARE PRODUCING EFFECTIVE RESULTS," MR BLAKE SAID.

ON THE PUBLIC WORKS PROGRAMME, MAJOR PROJECTS COMPLETED IN 1992 INCLUDE THE PAMELA YOUDE HOSPITAL WITH THE FIRST INTAKE OF PATIENTS SCHEDULED FOR END OF THIS YEAR, RECLAMATION AT YAU MA TEI TYPHOON SHELTER, THE NORTH WEST KOWLOON SEWAGE TREATMENT AND DISPOSAL SCHEME, KING’S ROAD RECONSTRUCTION AND WANCHAI TOWER TIT WHICH HAS BEEN RENAMED THE REVENUE TOWER.

/NON-AIRPORT .......

THURSDAY, MARCH 11, 1993

3

NON-AIRPORT CORE PROGRAMME PROJECTS DUE TO START THIS YEAR INCLUDE ROUTE-3 TSING YI-KWAI CHUNG SECTION, ENGINEERING WORKS AND BACK-UP AREAS FOR CONTAINER TERMINAL 9, DUPLICATE TSING YI SOUTH BRIDGE, RECLAMATION AT BELCHER BAY AND MAIN DRAINAGE CHANNELS TO REDUCE FLOODING RISK IN YUEN LONG AND KAM TIN.

REFERRING TO THE AIRPORT CORE PROGRAMME, MR BLAKE SAID SATISFACTORY PROGRESS HAS BEEN ACHIEVED ON THOSE PROJECTS WHICH HAD COMMENCED.

"IN THE WEST KOWLOON RECLAMATION, ABOUT ONE-QUARTER OF THE 330 HECTARES OF NEW LAND HAS BEEN FORMED.

"SITE FORMATION AND BRIDGE FOUNDATION WORKS FOR THE TSING MA BRIDGE IS ALSO MAKING GOOD PROGRESS."

"OTHER MAJOR WORKS PROGRESSING SMOOTHLY INCLUDE SITE FORMATION FOR THE ROUTE-3/LANTAU FIXED CROSSING INTERCHANGE, DREDGING AND RECLAMATION WORKS FOR TUNG CHUNG NEW TOWN, AND THE NORTH LANTAU EXPRESSWAY."

"CONTRACTS TO BE AWARDED IN 1993/94 WILL INCLUDE THE KWAI CHUNG VIADUCT AND RAMBLER CHANNEL BRIDGE OF ROUTE-3, NORTHERN AND SOUTHERN SECTIONS OF THE WEST KOWLOON EXPRESSWAY AND THE TUNG CHUNG SECTION OF THE NORTH LANTAU EXPRESSWAY," MR BLAKE SAID.

-----o------

EXCHANGE FUND INVESTMENT APPROACH UNDER REVIEW

*****

THE CHIEF EXECUTIVE (DESIGNATE) OF THE HONG KONG MONETARY AUTHORITY (HKMA), MR JOSEPH YAM, SAID TODAY (THURSDAY) THAT THE INVESTMENT APPROACH OF THE EXCHANGE FUND WAS BEING REVIEWED.

"WE ARE ABOUT TO MANAGE THE EXCHANGE FUND MORE PROFESSIONALLY, WHICH IS GOOD FOR US, GOOD FOR THE MARKET HERE AND GOOD FOR HONG KONG," HE SAID.

SPEAKING AT THE ANNUAL MEETING OF THE INTERNATIONAL SWAP DEALERS ASSOCIATION, HE SAID THE "ETERNAL TRIANGLE" OF SECURITY, LIQUIDITY AND PROFIT, AS WELL AS THE COST OF THESE ELEMENTS, HAD TO BE CONSIDERED IN MANAGING THE OFFICIAL RESERVES.

"PROPER RISK-REWARD ANALYSES WILL BE DONE AND REVIEWS OF THE CREDIT AND LIQUIDITY POLICIES ARE UNDER WAY," HE SAID.

MR YAM OUTLINED THE CONCLUSIONS REACHED SO FAR FROM THE REVIEW OF THE INVESTMENT APPROACH OF THE EXCHANGE FUND.

THEY INCLUDED:

* MAINTAINING THE CURRENT POLICY OF MANAGING PART OF THE RESERVES THROUGH EXTERNAL FUND MANAGERS WITH THE USE OF MORE PRECISE GUIDELINES;

/*ADOPTING A .......

THURSDAY, MARCH 11, 1993


* ADOPTING A BENCHMARK APPROACH FOR THE EXCHANGE FUND’S OWN IN-HOUSE PORTFOLIO AND MANAGING THE ASSETS AND LIABILITIES TOGETHER; AND

* REFINING THE CURRENCY SELECTION PROCESS AND BEING LESS PASSIVE ABOUT POSITIONING THE EXCHANGE FUND FOR CURRENCY MOVEMENTS.

"WE ARE NOT EMBARKING ON A SPECULATIVE FRENZY," HE SAID. "WE ARE VERY CONSCIOUS OF OUR DUTY, AS A MONETARY AUTHORITY, TO PLAY OUR PART IN THE MAINTENANCE OF STABILITY IN WORLD FINANCIAL MARKETS."

MR YAM ALSO STRESSED THAT ONE OF THE MOST IMMEDIATE TASKS WAS TO BUILD UP HKMA’S LINKS AND RELATIONSHIPS WITH OTHER MARKET PARTICIPANTS.

HKMA WOULD PLACE EMPHASIS ON WORKING WITH COUNTERPARTIES WITH GREATER OPENNESS ON WHAT IT NEEDS AND IS THINKING OF DOING, HE SAID.

ON THE OTHER HAND, THE EXCHANGE FUND’S COUNTERPARTIES WERE EXPECTED TO COMMIT SIGNIFICANT RESOURCES TO THE EXCHANGE FUND ACCOUNT TO PROVIDE NEW IDEAS AND SUGGESTIONS TO THE HKMA, HE ADDED.

"WE ARE OFFERING OUR COUNTERPARTIES THE OPPORTUNITY TO BUILD A CLOSE RELATIONSHIP WITH A MAJOR FUND: ONE THAT HITHERTO HAS RESEMBLED A SLEEPING GIANT, OR SHOULD I SAY DRAGON, BUT WHICH NOW IS ABOUT TO BECOME MORE ACTIVE AND MUCH MORE DEMANDING," HE SAID.

"HKMA IS ALSO CATCHING UP WITH DEVELOPMENTS IN THE INFORMATION AND WIRE SERVICES FIELDS, AND IS REFINING AND DEVELOPING ITS IN-HOUSE MANAGEMENT INFORMATION SYSTEMS," HE SAID.

------0--------

HK’S EXTERNAL TRADE STATISTICS FOR JANUARY

* * * * *

THE CENSUS AND STATISTICS DEPARTMENT TODAY (THURSDAY) RELEASED THE DETAILED STATISTICS OF EXTERNAL TRADE WITH BREAKDOWN BY COUNTRY AND COMMODITY FOR JANUARY 1993.

COMPARING JANUARY 1993 WITH JANUARY 1992, THE VALUE OF DOMESTIC EXPORTS TO SINGAPORE AND TAIWAN RECORDED SIGNIFICANT INCREASES OF 32% AND 17% RESPECTIVELY.

THAT TO THE UNITED STATES AND CHINA, THE TWO LARGEST COUNTRIES OF DESTINATION FOR HONG KONG’S DOMESTIC EXPORTS, ALSO INCREASED BY 7.8% AND 1.7% RESPECTIVELY.

OVER THE SAME PERIOD, DECREASES WERE RECORDED IN THE VALUE OF DOMESTIC EXPORTS TO OTHER MAJOR COUNTRIES OF DESTINATION: FRANCE (-22%), GERMANY (-10%), JAPAN (-9.2%), THE UNITED KINGDOM (-7.5%) AND CANADA (-5.5%).

/FOR ALL ........

5

THURSDAY, MARCH 11, 1993

FOR ALL COUNTRIES OF DESTINATION TAKEN TOGETHER, THE VALUE OF DOMESTIC EXPORTS FOR JANUARY 1993 WAS $14,559 MILLION, 2.8% OVER THAT IN JANUARY 1992.

THE CHANGES IN THE VALUE OF DOMESTIC EXPORTS TO THE 10 MAJOR COUNTRIES OF DESTINATION ARE SHOWN IN TABLE 1.

AS THE EXTERNAL TRADE FIGURES OF A SINGLE MONTH AT THE BEGINNING OF EACH YEAR TEND TO BE VOLATILE BECAUSE OF THE LUNAR NEW YEAR HOLIDAYS, IT IS MORE MEANINGFUL TO MAKE COMPARISONS OVER A LONGER PERIOD.

COMPARING THE THREE MONTHS ENDING JANUARY 1993 WITH THE THREE MONTHS ENDING JANUARY 1992, A SIGNIFICANT INCREASE OF 35% WAS RECORDED IN THE VALUE OF DOMESTIC EXPORTS TO SINGAPORE. THAT TO CHINA, TAIWAN AND THE NETHERLANDS ALSO INCREASED BY 8.0%, 7.6% AND 3.4% RESPECTIVELY.

HOWEVER, DECREASES WERE RECORDED IN THE VALUE OF DOMESTIC EXPORTS TO OTHER MAJOR COUNTRIES OF DESTINATION: JAPAN (-13%), FRANCE (-13%), CANADA (-11%), THE UNITED STATES (-7.5%), THE UNITED KINGDOM (-5.6%) AND GERMANY (-2.5%).

TABLE 2 SHOWS THE CHANGES IN THE VALUE OF DOMESTIC EXPORTS OF THE 10 MAJOR COMMODITY DIVISIONS.

IN THE THREE MONTHS ENDING JANUARY 1993, INCREASES IN THE VALUE OF DOMESTIC EXPORTS OVER THE SAME PERIOD A YEAR AGO WERE REGISTERED FOR ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF (BY $1,960 MILLIONOR 191%); OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES (BY $986 MILLION OR 23%); AND TOBACCO AND TOBACCO MANUFACTURES (BY $141 MILLION OR 29%). THE VALUE OF DOMESTIC EXPORTS OF TEXTILES ALSO INCREASED BY $90 MILLION OR 2.3%.

OVER THE SAME PERIOD, DECREASES IN THE VALUE OF DOMESTIC EXPORTS WERE RECORDED FOR MISCELLANEOUS MANUFACTURED ARTICLES CONSISTING OF MAINLY PRINTED MATTER (BY $1,087 MILLION OR 19%); CLOTHING (BY $516 MILLION OR 2.6%); PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS (BY $481 MILLION OR 10%); AND TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT (BY $273 MILLION OR 8.6%).

THE TOTAL VALUE OF IMPORTS WAS $63,350 MILLION IN JANUARY 1993, AN INCREASE OF 13% OVER THAT IN JANUARY 1992.

THE CHANGES IN THE VALUE OF IMPORTS FROM THE TEN MAJOR SUPPLIERS ARE SHOWN TN TABLE 3.

COMPARING JANUARY 1993 WITH JANUARY 1992, INCREASES WERE RECORDED IN THE VALUE OF IMPORTS FROM ALL THE MAJOR SUPPLIERS: MALAYSIA (+38%), GERMANY (+27%), THE UNITED STATES (+25%), ITALY (+21%), TAIWAN (+21%), THE REPUBLIC OF KOREA (+18%), SINGAPORE (+14%), CHINA (+8.3%), JAPAN (+6.0%) AND THE UNITED KINGDOM (+4.4%).

WHEN COMPARISON IS MADE BETWEEN THE THREE MONTHS ENDING JANUARY 1993 WITH THE THREE MONTHS ENDING JANUARY 1992, THE ORDER OF MAGNITUDE IN THE INCREASE OF IMPORT VALUE FROM MOST SUPPLIERS WAS SIMILAR TO THAT RECORDED FOR THE MONTH OF JANUARY 1993.

/HOWEVER, JAPAN

THURSDAY, MARCH 11, 1993

- 6

HOWEVER, JAPAN, SINGAPORE AND THE UNITED KINGDOM REGISTERED EVEN MORE SUBSTANTIAL INCREASES, BY 25%, 29% AND 15% RESPECTIVELY.

TABLE 4 SHOWS THE CHANGES IN THE VALUE OF IMPORTS OF THE 10 MAJOR COMMODITY DIVISIONS.

COMPARING THE THREE MONTHS ENDING JANUARY 1993 WITH THE THREE MONTHS ENDING JANUARY 1992, INCREASES WERE RECORDED IN THE VALUE OF IMPORTS OF ALL MAJOR COMMODITY DIVISIONS.

MORE NOTABLE INCREASES WERE REGISTERED FOR ROAD VEHICLES (BY $5,896 MILLION OR 99%), ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF (BY $5,869 MILLION OR 31%); TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT (BY $3,478 MILLION OR 22%); AND FOOTWEAR (BY $2,704 MILLION OR 44%).

THE VALUE OF RE-EXPORTS AT $49,165 MILLION IN JANUARY 1993 RECORDED A SUBSTANTIAL INCREASE OF 26% OVER JANUARY 1992.

THE CHANGES IN THE VALUE OF HONG KONG’S RE-EXPORTS TO THE 10 MAJOR COUNTRIES OF DESTINATION ARE SHOWN IN TABLE 5.

COMPARING JANUARY 1993 WITH JANUARY 1992, INCREASES WERE RECORDED IN THE VALUE OF RE-EXPORTS TO ALL THE MAJOR COUNTRIES OF DESTINATION : THE UNITED KINGDOM (+31%), CHINA (+31%), SINGAPORE (+30%), THE UNITED STATES (+27%), FRANCE (+27%), JAPAN (+26%), ITALY (+21%), CANADA (+17%), GERMANY (+16%) AND TAIWAN (+13%).

COMPARING THE THREE MONTHS ENDING JANUARY 1993 WITH THE THREE MONTHS ENDING JANUARY 1992, THE VALUE OF RE-EXPORTS TO MOST MAJOR COUNTRIES OF DESTINATION RECORDED SIGNIFICANT INCREASES, EXCEPT THAT TO TAIWAN WHICH DROPPED BY 2.2%.

TABLE 6 SHOWS THE CHANGES IN THE VALUE OF RE-EXPORTS OF THE 10 MAJOR COMMODITY DIVISIONS.

IN THE THREE MONTHS ENDING JANUARY 1993, INCREASES IN THE VALUE OF RE-EXPORTS OVER THE SAME PERIOD A YEAR AGO WERE RECORDED FOR ALL MAJOR COMMODITY DIVISIONS.

MORE NOTABLE INCREASES WERE REGISTERED FOR ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF (BY $3,695 MILLION OR 35%); MISCELLANEOUS MANUFACTURED ARTICLES CONSISTING OF MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS (BY $3,641 MILLION OR 20%); ROAD VEHICLES (BY $3,499 MILLION OR 122%); FOOTWEAR (BY $3,151 MILLION OR 48%); AND TEXTILES (BY $2,320 MILLION OR 17%).

ALL THE TRADE STATISTICS DESCRIBED HERE ARE MEASURED AT CURRENT PRICES AND NO ACCOUNT HAS BEEN TAKEN OF THE CHANGES IN PRICES BETWEEN THE PERIODS OF COMPARISON.

A SEPARATE ANALYSIS OF THE VOLUME AND PRICE MOVEMENTS OF EXTERNAL TRADE FOR JANUARY 1993 WILL BE RELEASED IN EARLY APRIL.

/DETAILED TRADE .......

THURSDAY, MARCH 11, 1993

DETAILED TRADE STATISTICS ANALYSED BY COMMODITY AND BY COUNTRY ARE PUBLISHED IN TRADE STATISTICS REPORTS.

THE JANUARY 1993 ISSUE OF THE "HONG KONG EXTERNAL TRADE" WITH DETAILED ANALYSES ON THE PERFORMANCE OF HONG KONG’S EXTERNAL TRADE IN JANUARY 1993 WILL BE AVAILABLE FOR SALE AT $68.50 PER COPY AROUND MARCH 19.

THE REPORT CAN BE PURCHASED AT THE GOVERNMENT PUBLICATIONS CENTRE, GROUND FLOOR, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL, AND THE PUBLICATIONS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT, 19TH FLOOR, WANCHAI TOWER, 12 HARBOUR ROAD, WAN CHAI.

ENQUIRIES REGARDING REGULAR SUBSCRIPTION TO THIS REPORT MAY BE DIRECTED TO THE INFORMATION SERVICES DEPARTMENT AT FRENCH MISSION BUILDING, 1 BATTERY PATH, HONG KONG (TEL 842 8802) AND ENQUIRIES ON TRADE STATISTICS TO THE CENSUS AND STATISTICS DEPARTMENT (TEL 582 4915).

TABLE 1 : DOMESTIC EXPORTS TO THE 10 MAJOR COUNTRIES OF DESTINATION

MAJOR COUNTRY OF DESTINATION JAN 1993 (HKD MN) JAN 93 OVER JAN 92 (% CHANGE) NOV 92 TO JAN 93 (HKD MN) NOV 92 TO JAN 93 OVER NOV 91 TO JAN 92

(% , CHANGE)

UNITED STATES 3,850 + 7.8 14,872 - 7.5

CHINA 3,351 + 1.7 14,754 + 8.0

GERMANY 1 ,037 -T 10.3 4,402 - 2.5

SINGAPORE 819 + 31.9 2,800 + 35.3

UNITED KINGDOM 769 - 7.5 3,078 5.6

JAPAN 676 - 9.2 2,379 - 12.7

TAIWAN 432 + 17.3 1 ,663 + 7.6

NETHERLANDS 402 - 1.0 1 , 337 + 3.4

CANADA 366 - 5.5 1,179 - 10.9

FRANCE 208 - 21.5 804 - 12.7

/TABLE 2 .......

THURSDAY, MARCH 11, 1993

8

TABLE 2 : DOMESTIC EXPORTS OF THE 10 MAJOR COMMODITY DIVISIONS

JAN JAN 93 NOV 92 NOV 92 TO JAN 93

COMMODITY DIVISION 1993 OVER TO OVER 92

JAN 92 JAN 93 NOV 91 TO JAN

(HKD MN) (% CHANGE) (HKD MN) (% CHANGE)

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 5,236 + 5.9 19,501 - 2.6

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 1,464 + 31.0 2,989 +190.7

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 1,240 + 4.6 5,347 + 22.6

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY PRINTED MATTER) 1,107 t - 26.1 4,646 - 19.0

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 1,033 + 55.8 4,054 + 2.3

PHOTOGRAPH IC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 963 12.5 4,273 - 10.1

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 683 14.7 2,912 - 8.6

MANUFACTURES OF METALS 281 - 12.8 1,044 - 13.4

PLASTICS IN PRIMARY FORMS 223 + 5.8 750 - 14.7

TOBACCO AND TOBACCO MANUFACTURES 217 +193.4 624 + 29.1

/TABLE 3 .......

THURSDAY, MARCH 11, 1993

9

TABLE 3 : IMPORTS FROM THE 10 MAJOR SUPPLIERS

JAN JAN 93 NOV 92 NOV 92 TO JAN 93

MAJOR SUPPLIER 1993 OVER TO OVER

JAN 92 JAN 93 NOV 91 TO JAN 92

(HKD MN) (% CHANGE) (HKD MN) (% CHANGE

CHINA 24,542 + 8.3 87,354 + 9.9

JAPAN 9,780 + 6.0 41,684 + 25.1

TAIWAN 5,400 + 21.1 21,414 + 14.4

UNITED STATES 4,907 + 24.6 18,830 + 27.8

REPUBLIC OF KOREA 2,791 + 17.5 10,408 + 20.1

SINGAPORE 2,707 + 14.3 10,126 + 28.7

GERMANY 1,515 + 27.2 5,518 + 25.7

UNITED KINGDOM 1,306 + 4.4 4,847 + 14.8

MALAYSIA 914 , + 38.0 3,280 + 37.9

ITALY 896 + 21.4 3,752 + 23.9

TABLE 4 : IMPORTS OF THE 10 MAJOR COMMODITY DIVISIONS

COMMODITY DIVISION

JAN 1993

(HKD MN)

JAN 93 NOV 92 NOV 92 TO JAN 93

OVER TO OVER

JAN 92 JAN 93 NOV 91 TO JAN 92

(% CHANGE) (HKD MN) (% CHANGE)

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES,

AND ELECTRICAL PARTS THEREOF 6,858 + 42.2 25,024 + 30.6

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 5,982 + 13.3 19,982 + 6.9

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 5,236 + 45.1 22,329 + 5.1

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 4,776 - 1 . 7 19,360 + 21.9

/MISCELLANEOUS MANUFACTURED

THURSDAY, MARCH 11, 1993

10

MISCELLANEOUS MANUFACTURED 16,804 + 14.5

ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 4,350 + 0.1

ROAD VEHICLES 3,038 + 48.4 11,848 + 99.0

FOOTWEAR 2,935 + 80.4 8,824 + 44.2

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 2,677 - 9.6 11,044 + 4.1

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 2,269 + 14.8 8,869 + 27.5

GENERAL INDUSTRIAL MACHINERY AND EQUIPMENT, AND MACHINE PARTS 1,809 + 16.0 6,184 + 27.0

TABLE 5 : RE-EXPORTS TO THE 10 1 MAJOR COUNTRIES OF DESTINATION

JAN JAN 93 NOV 92 NOV 92 TO JAN 93

MAJOR COUNTRY OF DESTINATION 1993 (HKD MN) OVER JAN 92 (% CHANGE) TO JAN 93 (HKD MN) OVER NOV 91 TO JAN (% CHANGE) 92

CHINA 14,048 + 30.6 57,126 + 37.2

UNITED STATES 10,588 + 26.9 35, 144 + 15.6

GERMANY 2,856 + 15.8 9,333 + 13.4

JAPAN 2,803 + 26. 1 9,394 + 12.1

TAIWAN 1,496 + 13.2 6,029 - 2.2

UNITED KINGDOM 1 , 484 + 30.6 5,287 + 32.2

SINGAPORE 1,088 + 29.6 3,816 + 21.4

FRANCE 939 + 26.9 2,941 + 24.3

ITALY 903 + 21 .2 2,637 + 17.7

CANADA 873 + 17.4 2,600 + 11.5

/TABLE 6 .......

THURSDAY, MARCH 11, 1993

11

TABLE 6 : RE-EXPORTS OF THE 10 MAJOR COMMODITY DIVISIONS

JAN JAN 93 NOV 92 NOV 92 TO JAN 93

COMMODITY DIVISION 1993 OVER TO OVER

JAN 92 JAN 93 NOV 91 TO JAN 92

(HKD MN) (% CHANGE) (HKD MN) (% CHANGE)

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 6,665 + 27.8 20,054 + 11.8

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 6,205 + 19.1 22, 195 + 19.6

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 3,862 + 41.3 14,348 + 34.7

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 3,72,0 + 69.5 15,900 + 17.1

FOOTWEAR 3,448 +103.2 9,750 + 47.7

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 3,440 - 3.7 14,290 + 15.5

TRAVEL GOODS, HANDBAGS AND SIMILAR CONTAINERS 1,983 - 2.4 5,909

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACH J NES 1,870 + 27.3 6,672 + 35.2

ROAD VEHICLES 1,851 + 87.6 6,374 +121.7

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 1,828 - 2.8 7,459 + 14.0

* DENOTES LESS THAN 0.05%

------0-------

/12 ........

THURSDAY, MARCH 11, 1993

12

GOVT SUPPORTS R&D * * * *

THE APPLIED RESEARCH AND DEVELOPMENT (R&D) SCHEME REPRESENTS MORE THAN SIMPLE FINANCIAL SUPPORT FOR R & D; IN ITS EXPECTATION OF FINANCIAL RETURNS, IT IS A SIGN OF THE GOVERNMENT’S CONFIDENCE IN HONG KONG’S INDUSTRY.

THIS WAS STATED BY THE DIRECTOR-GENERAL OF INDUSTRY, MR T H BARMA, AT THE OPENING CEREMONY OF THE HONG KONG LINKAGE INDUSTRY -INTERNATIONAL MACHINE TOOL EXHIBITION ’93 TODAY (THURSDAY).

MR BARMA SAID THE AIM OF THE SCHEME WAS TO ENCOURAGE AND HELP THE MANUFACTURING INDUSTRY TO UPGRADE.

FINANCIAL SUPPORT WOULD BE PROVIDED TO COMPANIES IN HONG KONG FOR UP TO 50 PER CENT OF THE COST OF THEIR APPLIED R & D PROJECTS, EITHER IN THE FORM OF EQUITY PARTICIPATION OR A LOAN, HE SAID.

MR BARMA SAID HONG KONG’S INDUSTRIAL STRUCTURE WAS CHANGING.

APART FROM RELOCATING LABOUR-INTENSIVE OPERATIONS INTO CHINA TO RETAIN PRICE COMPETITIVENESS, MANUFACTURERS HAD ALSO UPGRADED THEIR CAPABILITIES AND MOVED DECISIVELY INTO HIGHER VALUE-ADDED PRODUCTS AND TECHNOLOGY BASED BUSINESSES.

IN THE COURSE OF THIS EVOLUTION, MR BARMA SAID THE LINKAGE INDUSTRY HAD PLAYED AN IMPORTANT ROLE IN HELPING THE MANUFACTURING INDUSTRY TO ADJUST.

"IT HAS QUICKLY EQUIPPED ITSELF WITH NEW EQUIPMENT AND ADOPTED NEW SKILLS AND TECHNOLOGIES TO SUPPORT MANUFACTURERS TO MEET THE CHALLENGE.

"TODAY, THE USE OF COMPUTER-AIDED DESIGN AND MANUFACTURING FACILITIES IS VERY COMMON, ESPECIALLY IN THE MOULD AND DIE SECTOR," HE SAID.

MR BARMA USED THE MACHINING CENTRE AS AN EXAMPLE AND SAID THE IMPORT OF MACHINING CENTRES INTO HONG KONG IN 1992 WAS ALMOST DOUBLE THAT OF 1991 AND WAS ABOUT FOURFOLD THAT OF 198R.

THE FIGURES SHOWED THAT ABOUT 71 PER CENT OF THE MACHINING CENTRES IMPORTED IN 1992 HAD BEEN RETAINED FOR USE IN HONG KONG WITH THE REMAINING 29 PER CENT BEING SHIPPED INTO CHINA, HE ADDED.

MR BARMA SAID MANUFACTURERS HAD ALSO TAKEN KEEN INTEREST IN THE APPLICATION OF OTHER ADVANCED TECHNOLOGIES SUCH AS LASER CUTTING, OPTICAL GRINDING, TURRET PUNCHING AND FINE BLANKING.

"AS A RESULT OF SUCCESSFUL APPLICATIONS OF ADVANCED PRODUCTION PROCESSES IN THE INDUSTRY, MANUFACTURERS ARE ABLE TO EXPAND THEIR PRODUCT RANGES AND IMPROVE THEIR QUALITY TO MEET THE EVER-RISING CONSUMER EXPECTATION.

"THIS IS A POSITIVE SIGNAL THAT MANUFACTURERS ARE WILLING TO INVEST IN MACHINERY AND ADOPT NEW SKILLS IN ORDER TO UPGRADE THEMSELVES TO MEET THE INCREASING COMPETITION IN THE INTERNATIONAL MARKET," HE SAID.

/MR BARMA .......

THURSDAY, MARCH 11, 1993

13

MR BARMA SAID LAST YEAR THE INDUSTRY DEPARTMENT COMMISSIONED CONSULTANTS TO UNDERTAKE A TECHNO-ECONOMIC AND MARKET RESEARCH STUDY ON THE METALS AND LIGHT ENGINEERING INDUSTRIES.

THE AIM OF THE STUDY WAS TO IDENTIFY THE OPPORTUNITIES AND THREATS FACING THE LOCAL METALS AND LIGHT ENGINEERING INDUSTRIES AND TO ANALYSE THEIR STRENGTHS AND WEAKNESSES, WITH A VIEW TO RECOMMENDING MEASURES WHICH GOVERNMENT AND MANUFACTURERS COULD TAKE TO REMOVE THE CONSTRAINTS AND TAKE ADVANTAGE OF THEIR OPPORTUNITIES TO DEVELOP.

THE STUDY HAS BEEN COMPLETED AND THE CONSULTANTS HAVE RECENTLY SUBMITTED THEIR REPORTS TO THE INDUSTRY DEPARTMENT,” MR BARMA SAID.

------0--------

REVIEW SUGGESTS INCLUSION OF VISUAL AND LITERARY ARTS IN GOVT SCOPE ♦ * t t t

THE SCOPE OF THE GOVERNMENT’S RESPONSIBILITIES FOR THE ARTS SHOULD BE EXTENDED TO INCLUDE THE VISUAL AND LITERARY ARTS AND MEASURES SHOULD BE TAKEN TO ENCOURAGE MORE PRIVATE SECTOR SPONSORSHIP.

THESE ARE AMONG THE RECOMMENDATIONS FOR THE DEVELOPMENT OF THE ARTS IN THE 1990S SET OUT IN THE ARTS POLICY REVIEW WHICH HAS JUST BEEN COMPLETED BY AN INTER-DEPARTMENTAL WORKING GROUP, THE SECRETARY FOR RECREATION AND CULTURE, MR JAMES SO, SAID TODAY (THURSDAY).

SPEAKING AT THE JOINT LUNCHEON MEETING OF THE LIONS CLUBS OF TAI PING SHAN AND MOUNT CAMERON, MR SO SAID AT PRESENT, THE COUNCIL FOR THE PERFORMING ARTS (CFPA) WAS TASKED TO ADVISE THE GOVERNMENT ONLY ON THE DEVELOPMENT OF THE PERFORMING ARTS.

IT HAS BEEN SUGGESTED BY THE ARTS COMMUNITY THAT A

SUCH AS AN ARTS COUNCIL OR ARTS DEVELOPMENT BOARD BE REPLACE THE CFPA TO CO-ORDINATE THE DEVELOPMENT OF THE

NEW AGENCY

CREATED TO

ARTS AS A

WHOLE.

WHEN CONSIDERING THE ESTABLISHMENT OF AN ARTS COUNCIL WITH RESPONSIBILITIES IN POLICY DETERMINATION AND RESOURCE ALLOCATION, MR SO STRESSED THAT A KEY FACTOR TO TAKE INTO ACCOUNT WAS THE AUTONOMY OF THE TWO MUNICIPAL COUNCILS IN THE DEVELOPMENT OF THE ARTS.

THE WORKING GROUP FELT THAT A MORE PRACTICAL ALTERNATIVE IS TO RE-ORGANISE THE CFPA INTO A NON-STATUTORY ARTS COUNCIL SO AS TO ADVISE THE GOVERNMENT ON MATTERS RELATED TO THE DEVELOPMENT OF THE PERFORMING, VISUAL AND LITERARY ARTS, MR SO SAID.

ON ARTS FUNDING, MR SO NOTED THAT AT PRESENT, BOTH THE GOVERNMENT AND THE TWO MUNICIPAL COUNCILS GIVE FUNDING SUPPORT FOR THE DEVELOPMENT OF THE ARTS.

THE PRIVATE SECTOR HAD ALSO BECOME MORE RECEPTIVE TO PROVIDING SPONSORSHIP IN RECENT YEARS.

/IT IS ........

THURSDAY, MARCH 11, 1993

14

IT IS RECOMMENDED THAT THE GOVERNMENT SHOULD, IN CONSULTATION WITH THE CFPA, EXPLORE OPTIONS FOR FUTURE FUNDING FOR ARTS DEVELOPMENT IN THE 1990S, TAKING INTO ACCOUNT THE LEVEL OF FUNDING REQUIRED TO MAINTAIN EXISTING SERVICES AND NEW COMMITMENTS LIKELY TO ARISE FROM THE ESTABLISHMENT OF THE ARTS COUNCIL, MR SO SAID.

ON THE FREEDOM OF ARTISTIC EXPRESSION, MR SO SAID THE EXISTING GOVERNMENT POLICY OF ACTING AS A CATALYST TOWARDS THE DEVELOPMENT OF THE ARTS HAD TO A LARGE EXTENT HELPED CULTIVATE THE RIGHT SOCIAL AND CREATIVE ENVIRONMENT.

HE SAID: ’’THE GOVERNMENT SHOULD THEREFORE CONTINUE TO MAINTAIN A NEUTRAL STAND, LEAVING IT TO THE ARTISTS TO DECIDE HOW BEST THEY SHOULD DEVELOP ARTISTICALLY.”

ON ARTS IN EDUCATION, MR SO SAID IT WAS TIMELY TO CONSIDER WHETHER THE WORK OF THE MUSIC OFFICE WHICH PROVIDED INSTRUMENTAL MUSIC TRAINING OPPORTUNITIES FOR YOUNG PEOPLE WOULD BETTER BE DONE BY NON-GOVERNMENT SECTORS.

MR SO EXPLAINED THAT THROUGHOUT THE YEARS, MANY NON-GOVERNMENT ORGANISATIONS HAD BEEN SET UP TO PROVIDE SUCH TRAINING AND RUN MUSIC PROGRAMMES AND MANY PARENTS COULD NOW AFFORD TO PROVIDE MUSIC TRAINING TO THEIR CHILDREN THROUGH PRIVATE TUITION.

CURRENTLY, MUSIC TRAINING PROGRAMMES FOR YOUNG PEOPLE ARE ALSO RUN BY THE HONG KONG ACADEMY FOR PERFORMING ARTS (APA).

"THERE IS A CASE FOR EXPLORING THE POSSIBILITY OF TRANSFERRING PART OR ALL OF THE FUNCTIONS OF THE MUSIC OFFICE TO THE NON-GOVERNMENT SECTOR INCLUDING THE APA," MR SO SAID.

FOLLOWING THE MASSIVE CONSTRUCTION PROGRAMME OF CULTURAL VENUES BY THE GOVERNMENT AND THE MUNICIPAL COUNCILS IN THE 1980S, MR SO SAID THE COMMUNITY NEEDS FOR CULTURAL VENUES HAD LARGELY BEEN MET.

"IT IS APPROPRIATE FOR THE GOVERNMENT AND THE MUNICIPAL COUNCILS TO GENERALLY PUT A HALT TO THE CULTURAL VENUE BUILDING PROGRAMME, WITH SOME EXCEPTIONS IN THE NEW TERRITORIES," HE SAID.

MR SO SAID HONG KONG AT PRESENT HAD A RICH, COLOURFUL AND VARIED CULTURAL ENVIRONMENT, BLENDING AND OFFERING THE BEST OF EAST AND WEST.

THE GOVERNMENT WAS POISED TO TAKE THE ACHIEVEMENTS IN ARTS IN THE PAST DECADE FURTHER IN THE 1990S ON THE BASIS OF THE HEALTHY PARTNERSHIP BUILT UP BETWEEN THE GOVERNMENT, THE MUNICIPAL COUNCILS, THE ARTISTS AND THE COMMUNITY AT LARGE, HE ADDED.

"THE ARTS COMMUNITY WILL BE INVITED TO GIVE THEIR VIEWS ON RECOMMENDATIONS AND OTHER MATTERS IN CONNECTION WITH THE REVIEW AND A REPORT PUBLISHED FOR CONSULTATION WILL BE OUT IN ABOUT 10 DAYS," MR SO ADDED.

--------0-----------

/15 ........

THURSDAY, MARCH 11, 1993

15

RELEASE OF ARTS POLICY REVIEW REPORT FOR PUBLIC CONSULTATION *****

THE ARTS POLICY REVIEW CONDUCTED BY A GOVERNMENT WORKING GROUP CHAIRED BY THE COMMISSIONER FOR RECREATION AND CULTURE AND COMPRISING REPRESENTATIVES OF THE URBAN SERVICES, REGIONAL SERVICES AND EDUCATION DEPARTMENTS, HAS NOW BEEN COMPLETED.

THE REVIEW REPORT IS BEING PRINTED AND WILL BE RELEASED ON MARCH 22 FOR CONSULTATION WITH THE ARTS COMMUNITY, INCLUDING THE LEGCO PANEL ON RECREATION AND CULTURE, THE TWO MUNICIPAL COUNCILS AND THE COUNCIL FOR THE PERFORMING ARTS.

THE REPORT WILL BE IN ENGLISH AND CHINESE.

MEMBERS OF THE PUBLIC WHO ARE INTERESTED IN THE SUBJECT AND WISH TO OBTAIN A COPY OF THE REPORT MAY WRITE TO THE RECREATION AND CULTURE BRANCH (CULTURE DIVISION), 40TH FLOOR, REVENUE TOWER, 5 GLOUCESTER ROAD, WAN CHAI.

THE CONSULTATION PERIOD WILL LAST UNTIL JUNE 30.

------0-------

HUMAN RIGHTS,PROMOTION CONTINUES

*****

THE COMMITTEE ON THE PROMOTION OF CIVIC EDUCATION (CPCE) WILL CONTINUE TO PROMOTE HUMAN RIGHTS EDUCATION STARTING WITH THE FUNDAMENTAL CONCEPTS OF THE BILL OF RIGHTS (BOR).

SPEAKING AT A GROUP DISCUSSION TODAY (THURSDAY), THE COMMITTEE CHAIRMAN, DR DANIEL TSE CHI-WAI, BELIEVED THIS WOULD BE INSTRUMENTAL IN THE EFFECTIVE IMPLEMENTATION OF THE BOR.

THE CPCE WILL TAILOR ACTIVITIES TO AROUSE PUBLIC/ INTEREST IN THIS IMPORTANT PIECE OF LAW AS RECOMMENDED BY THE ORGANISERS OF TWO RECENT TELEPHONE SURVEYS ON YOUTH.

THE SURVEYS FOUND THAT THE MEDIA HAS BEEN THE MOST EFFECTIVE CHANNEL TO SPREAD HUMAN RIGHTS INFORMATION.

THE COMMITTEE WILL, IN ADDITION TO RADIO PROGRAMMES, EXPLORE WAYS TO CONVEY THE MESSAGE THROUGH TELEVISION. SUGGESTIONS INCLUDE ANNOUNCEMENTS IN PUBLIC INTEREST AND OTHER PROGRAMMES.

IT WILL ALSO EXPAND THE COMMUNITY PARTICIPATION SCHEME IN 1993/94 TO SPONSOR MORE PROJECTS ON BASIC HUMAN RIGHTS.

THE COMMITTEE PLANS TO ENLARGE ITS BANK OF HUMAN RIGHTS READING MATERIALS AT THE CIVIC EDUCATION RESOURCE CENTRE IN WAN CHAI.

THE SURVEYS ALSO INDICATED THAT ALTHOUGH MOST OF THE RESPONDENTS BELIEVED THEIR RIGHTS WERE WELL-PROTECTED, THEIR IMPRESSION OF SUCH BASIC CONCEPTS AS FREEDOM OF OPINION OR THE RIGHT TO FAIR TRIAL REMAINED VAGUE.

/THE ONE ........

16

THURSDAY, MARCH 11, 1993

THE ONE COMMISSIONED BY THE HONG KONG FEDERATION OF YOUTH GROUPS IN JANUARY SHOWED THAT MORE THAN HALF OF THOSE INTERVIEWED (53 PER CENT OUT OF 1,090) WERE SATISFIED WITH THE HUMAN RIGHTS CONDITION IN THE TERRITORY.

ACCORDING TO THE OTHER SURVEY BY THE OCEAN JAYCEES LTD ON 334 JUNIOR CHAMBER OF COMMERCE MEMBERS, OVER 80 PER CENT ADMITTED THEY HAD EITHER GENERAL OR LITTLE KNOWLEDGE OF THE BOR PROVISIONS.

MORE THAN 60 PER CENT ADDED THAT EDUCATION IN THIS AREA WAS NOT ADEQUATE.

THE SURVEY ALSO SHOWED THAT THE MASS MEDIA (34 PER CENT) WAS THE MOST EFFECTIVE CHANNEL IN THE PROMOTION OF HUMAN RIGHTS, FOLLOWED BY EDUCATIONAL INSTITUTIONS (26 PER CENT), COMMUNITY ORGANISATIONS (18 PER CENT) AND GOVERNMENT DEPARTMENTS (17 PER CENT).

ON THIS AFTERNOON’S SESSION, DR TSE SAID IT WAS HELD WITH THE AIM TO ENHANCE PARTICIPANTS’ UNDERSTANDING OF THE YOUTH’S ATTITUDE TO AND THEIR KNOWLEDGE OF HUMAN RIGHTS.

ANOTHER OBJECTIVE WAS TO POOL EXPERIENCES WITH VOLUNTARY AGENCIES SO AS TO COME UP WITH A MORE EFFECTIVE PROMOTION PACKAGE, HE ADDED.

AIDS EDUCATION SEMINAR ON SATURDAY

*****

YOUNG PEOPLE INTERESTED IN AIDS EDUCATION AND PROMOTIONAL ARE WELCOME TO ATTEND A SEMINAR ENTITLED ’’YOUTH ACTION ON AIDS THE DUKE OF WINDSOR SOCIAL SERVICE BUILDING IN WAN CHAI ON SA' (MARCH 13).

ON AIDS

WORK AT

CHAI ON SATURDAY

ORGANISED BY THE COMMITTEE ON EDUCATION AND PUBLICITY ON AIDS

admission’isHfreeMINAR IS targeted at Yol,NG PK0PI'R and social workers'.

IT WILL BE HELD FKOM 3 PM 30 5«30 PM AT ROOM 204-206 ON THE SECOND FLOOR OF THE SOCIAL SERVICE BUILDING AT 15 HENNESSY ROAD.

THERE WILL BE FOUR SPEAKERS. THEY WILL TALK ON:

SUBJECT

SPEAKER

AIDS EDUCATION FOR YOUTH -THE ROLE OF THE WORKING GROUP ON YOUTH, CEPAIDS

MR FUNG CHEUNG-TIM, SENIOR PROJECT OFFICER, HONG KONG COUNCIL OF SOCIAL SERVICE

AIDS EDUCATION FOR MARGINAL YOUTH

MISS SARAH YEUNG,

CASEWORKER, KWUN TONG HOSTEL, SOCIAL WELFARE

DEPARTMENT

/DESIGN OF

THURSDAY, MARCH 11, 1993

* DESIGN OF HEALTH EDUCATION MR MOK HON-FAI,

MATERIALS FOR YOUTH ON AIDS/SEX CENTRE-IN-CHARGE,

MEI LAM YOUTH CENTRE - THE HONG

KONG FEDERATION OF YOUTH GROUPS

* HEALTHY YOUNG EMBASSADORS A REPRESENTATIVE FROM THE HONG

SCHEME KONG AIDS FOUNDATION LIMITED

THE DEPARTMENT OF HEALTH’S CONSULTANT PHYSICIAN AND MEMBER OF THE CEPAIDS, DR S S LEE WILL GIVE A CLOSING ADDRESS AT THE SEMINAR.

THE CHAIRMAN OF CEPAIDS, MR HO SAI-CHU, WILL PRESENT SOUVENIRS TO THE SPEAKERS.

THE SEMINAR FORMS PART OF THE NATIONAL PHASE OF A REGIONAL AIDS EDUCATION PROJECT TO BE HELI) BY THE ASIA CENTRE OF THE COMMONWEALTH YOUTH PROGRAMME IN MALAYSIA NEXT MONTH. THE FOUR SPEAKERS WILL THEN ATTEND AS HONG KONG REPRESENTATIVES.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER.

-----0-------

NEW MEMBERS TO YOUTH COMMISSION

*****

THREE NEW MEMBERS HAVE BEEN APPOINTED TO THE COMMISSION ON YOUTH FOR A TERM OF ONE YEAR.

THEY ARE MR PAUL CHAN KAM-CHEUNG, MR LINCOLN SOO HUNG-LEUNG AND MR HUI YUNG-CHUNG.

THE TERM RUNS FROM FEBRUARY 15 TO MARCH 31 NEXT YEAR.

MR CHAN IS THE DEPUTY EXECUTIVE DIRECTOR OF THE HONG KONG FEDERATION OF YOUTH GROUPS. MR SOO IS A MEMBER OF THE SOCIAL WELFARE ADVISORY COMMITTEE AND MR HUT IS THE CHAIRMAN OF THE SOUTHERN DISTRICT BOARD.

THEY WILL REPLACE MR HOWARD YOUNG HOW-WAH, MRS MIRIAM LAU KIN-YEE AND MR CHAN KA-KUI WHO HAVE SERVED THE COMMISSION SINCE ITS ESTABLISHMENT IN FEBRUARY 1990.

THE CHAIRMAN OF THE COMMISSION, MR ERIC LI KA CHEUNG AND OTHER INCUMBENT MEMBERS HAVE ALL BEEN RE-APPOINTED FOR A FURTHER TERM OF ONE YEAR.

/THEY INCLUDE .......

THURSDAY, MARCH 11, 1993

18

THEY INCLUDE PROFESSOR NELSON CHOW WING-SUN, MR MAK HOI-WAH, MRS JOYCE TAI POON CHING-SHEUNG, DR LO CHI-KIN, MR CHEUNG YIN-TUNG, MR CHAN MO-POW, MS JUNIA HO SUK-YIN, MRS ANGELA CHEUNG WONG WAN-YIU, MR RONNIE WONG MAN-CHIU AND MR LEUNG YUK-CHEUNG.

THE SECRETARY FOR HOME AFFAIRS, THE SECRETARY FOR HEALTH AND WELFARE, THE SECRETARY FOR EDUCATION AND MANPOWER, THE SECRETARY FOR RECREATION AND CULTURE AND THE SECRETARY FOR SECURITY OR THEIR REPRESENTATIVES WILL CONTINUE TO SERVE AS EX-OFFICIO MEMBERS ON THE COMMISSION.

THE SECRETARY OF THE COMMISSION IS THE PRINCIPAL ASSISTANT SECRETARY FOR HOME AFFAIRS (YOUTH), MISS SUSIE HO.

THE ROLES OF THE COMMISSION ARE TO ADVISE THE GOVERNOR ON MATTERS RELATING TO YOUTHS, TO EXCHANGE IDEAS AND INFORMATION WITH OTHER GOVERNMENT ADVISORY BODIES ON YOUTH MATTERS, TO ENCOURAGE COOPERATION AND CO-ORDINATION IN THE DELIVERY OF YOUTH SERVICES AND TO SERVE AS A LIAISON POINT WITH OTHER INTERNATIONAL YOUTH ORGANISATIONS.

--------0-----------

COMMUNITY TREE PLANTING BEGINS ON SUNDAY

*****

MEMBERS OF THE PUBLIC WHO WANT TO PLAY A PART IN MAKING THE TERRITORY’S COUNTRYSIDE GREENER ARE WELCOME TO PARTICIPATE IN THIS YEAR’S COMMUNITY TREE PLANTING SCHEME BEGINNING ON SUNDAY (MARCH 14).

FROM THAT DAY UNTIL APRIL 25, A NUMBER OF DESIGNATED SITES IN SIX COUNTRY PARKS WILL BE OPEN ON EVERY SUNDAY AND PUBLIC HOLIDAY FOR LOCAL RESIDENTS OR VISITING TOURISTS TO PLANT TREES WITH THEIR OWN HANDS.

THESE PARKS ARE TAI MO SHAN, HOK TAU, PAK TAM CHUNG, QUARRY BAY, SHING MUN AND NGONG PING.

A SPOKESMAN FOR THE AGRICULTURE AND FISHERIES DEPARTMENT (AFD) SAID TODAY (THURSDAY) THAT THE ANNUA), COMMUNITY TREE PLANTING SCHEME HAD BEEN BECOMING MORE POPULAR SINCE IT WAS STARTED IN 1957.

LAST YEAR, MORE THAN 23,000 PEOPLE TOOK PART TN THE SCHEME TO PLANT MORE THAN 32,800 TREES. THE FIGURES REPRESENTED AN INCREASE OF 18 PER CENT IN THE NUMBER OF PARTICIPANTS AND 26 PER CENT IN THE NUMBER OF TREES PLANTED OVER THOSE OF 1991.

THE SPOKESMAN SAID MEMBERS OF THE PUBLIC WHO WISHED TO JOIN THE SCHEME CAN GO TO THE SITES AND PLANT TREES.

"TREE SEEDLINGS AND TOOLS WILL BE PROVIDED BY AFD. COUNTRY PARK STAFF WILL BE ON THE SITE TO GIVE TECHNICAL ADVICE ON TREE PLANTING.

/"THE SCHEME .......

THURSDAY, MARCH 11, 1993

19

"THE SCHEME IS AIMED AT CULTIVATING A SENSE OF NATURE CONSERVATION AMONG MEMBERS OF THE COMMUNITY BY INVOLVING THEM TO PLANT TREES."

IT ALSO HELPS THEM UNDERSTAND BETTER THE TREE PLANTING AND TREE GROWTH PROCESS.

NOTING THAT MORE AND MORE YOUNG PEOPLE HAD TAKEN AN ACTIVE PART IN THE SCHEME IN RECENT YEARS, THE SPOKESMAN SAID HE LOOKED FORWARD TO A HIGH TURNOUT THIS YEAR.

APART FROM INDIVIDUALS, ARRANGEMENTS HAVE BEEN MADE FOR STUDENTS AND COMMUNITY GROUPS TO TAKE PART IN THE PROGRAMME. INTERESTED SCHOOLS AND ORGANISATIONS ARE WELCOME TO CONTACT AFD’S CONSERVATION EDUCATION UNIT ON TEL 733 2121.

THIS YEAR’S SCHEME WILL BE LAUNCHED BY LEGISLATIVE COUNCILLOR, MR PETER WONG HONG-YUEN AND THE DIRECTOR OF AGRICULTURE AND FISHERIES, DR LAWRENCE LEE IN SAI KUNG ON SATURDAY (MARCH 13) MORNING.

A NUMBER OF TVB ARTISTES WILL ALSO TAKE PART IN THE CEREMONY AND PLANT THE FIRST BATCH OF TREES.

THE SCHEME IS JOINTLY ORGANISED BY AFD, LIONS CLUBS INTERNATIONAL DISTRICT 303 AND THE NEWLY ESTABLISHED FRIENDS OF THE COUNTRY PARKS.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE LAUNCHING OF THE SCHEME WHICH WILL BEGIN AT 10.30 AM ON SATURDAY AT TUI MIN HOI, TSIU HANG SPECIAL AREA, SAI KUNG.

TRANSPORT WILL BE PROVIDED.

A VAN, AM2168, WILL DEPART THE CANTON ROAD GOVERNMENT OFFICES, 393 CANTON ROAD, KOWLOON, AT 9.30 AM ON THAT DAY. THOSE MAKING THEIR OWN WAY THERE SHOULD USE HIRAM’S HIGHWAY AND TURN INTO HONG KIN ROAD (NEAR SAI KUNG FIRE STATION) FOR THE SITE.

--------0-----------

FS PRESENTS LUCKY CAR NUMBER TO SUCCESSFUL BIDDER *****

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, PRESENTED THE CAR REGISTRATION MARK "NO. 2" TO THE SUCCESSFUL BIDDER, MR WONG MING-HUNG, AT A CEREMONY HELD IN HIS OFFICE TODAY (THURSDAY).

THE LUCKY CAR NUMBER SET A RECORD HIGH PRICE OF $9.5 MILLION AT AN AUCTION HELD ON FEBRUARY 27. THE PROCEEDS WENT INTO THE LOTTERIES FUND FOR CHARITY.

/"NO. 2 ........

THURSDAY, MARCH 11, 1993

- 20 -

"NO. 2" HAD BEEN THE REGISTRATION MARK ASSIGNED TO THE OFFICE OF THE FINANCIAL SECRETARY. MR MACLEOD DECIDED TO MAKE IT AVAILABLE FOR AUCTION TO BOOST THE TAKINGS OF THE LOTTERIES FUND.

AS A PERSONAL GESTURE, THE FINANCIAL SECRETARY PRESENTED MR WONG WITH A SET OF NEW PROOF HONG KONG COINS TO THANK HIM FOR HIS SUPPORT FOR THIS WORTHY CAUSE.

-----0------

TRAFFIC BAN AT TSEUNG KWAN O CEMETERY

*****

THE TSEUNG KWAN O CHINESE PERMANENT CEMETERY WILL BE CLOSED TO VEHICULAR TRAFFIC, EXCEPT FOR AUTHORISED VEHICLES, THIS SATURDAY AND SUNDAY, A SPOKESMAN FOR THE BOARD OF MANAGEMENT OF THE CHINESE PERMANENT CEMETERIES SAID TODAY (THURSDAY).

THE MEASURE, HE SAID, WAS AIMED AT ENSURING THE SAFETY OF GRAVE SWEEPERS WHO ARE EXPECTED TO FLOCK TO THE CEMETERY WITH THE APPROACH OF THE CHING MING FESTIVAL.

HE POINTED OUT THAT TRAFFIC BAN WILL BE IMPOSED AGAIN ON MARCH 28 AS WELL AS ON APRIL 4, 5, 10, 11 AND 18 IN ADDITION TO ANY UNSPECIFIED DATES AS AND WHEN THE CIRCUMSTANCES WARRANT.

THE SPOKESMAN ALSO CALLED ON THOSE INTENDING TO VISIT COLUMBARIUMS AND CEMETERIES MANAGED BY THE BOARD TO USE ONLY SMALL INCENSE STICKS TO MINIMISE NUISANCE.

HE REMINDED THEM THAT WORKERS IN THEIR CEMETERIES WOULD NOT PROVIDE HELP IN THE BURNING OF RITUAL ITEMS.

--------0

NEW QUEEN’S COUNSEL TO BE NAMED NEXT MONTH

******

A NAMES OF THURSDAY

SPOKESMAN FOR

NEW QUEEN’S PRECEDING GOOD

THE JUDICIARY COUNSEL WOULD FRIDAY.

TODAY (THURSDAY)

BE ANNOUNCED ON

SAID THAT

APRIL 8,

THE

THE

court -

-----o------

/21 ........

THURSDAY, MARCH 11, 1993

21

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 2,150

REVERSAL OF LAF NIL

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/W1THDRAWAL TODAY NII,

EFFECT OF LAF TODAY -560

CLOSING BALANCE IN THE ACCOUNT 1,590

LAF RATE 2.00 BID/4.00 OFFER TWI 114.2 *+0.1* 11.3.93

HONG KONG GOVERNMENT EXCHANGE FUND EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.10 PCT 14 MONTHS 2405 5.50 102.44 3.41

1 MONTH 2.53 PCT 17 MONTHS 2408 5.50 101.30 3.47

3 MONTHS 2.84 PCT 20 MONTHS 241 1 4.375 101.67 3.62

6 MONTHS 3.03 PCT 23 MONTHS 2502 4.625 101.76 3.83

12 MONTHS 3.31 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 15,746MN

CLOSED 11 MARCH 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

FRIDAY, MARCH 12, 1993

CONTENTS PAGE NO.

GOVERNOR AT LEGCO.STATEMENT AND ANSWERS TO QUESTIONS .... 1

ELECTORAL PROVISIONS (MISCELLANEOUS AMENDMENTS) BILL 1993.... 15

PLAN FOR AIRPORT RAILWAY IMMERSED TUBE PUBLISHED ........ 16

HK - A KEY REGIONAL CENTRE .............................. 17

PILOTAGE REVIEW CONSULTANCY TO RECOMMEND PORT CHARGES ... 19

SPORT HELPS MENTALLY HANDICAPPED INTEGRATE INTO SOCIETY . 21

AIR QUALITY REPORT RELEASED FOR FEBRUARY ................ 21

TECHNICAL TEACHERS WANTED ............................... 23

SAFETY DRIVING COMPETITION .............................. 23

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS ..

24

FRIDAY, MARCH 12, 1993

1

GOVERNOR AT LEGCO

STATEMENT AND ANSWERS TO QUESTIONS * * * * ♦

MR PRESIDENT,

LET ME FIRST OF ALL APOLOGISE TO HONOURABLE MEMBERS FOR HAVING TO POSTPONE MY APPEARANCE BEFORE THIS COUNCIL YESTERDAY AFTERNOON AT SUCH SHORT NOTICE. I VERY MUCH APPRECIATE THE INCONVENIENCE THIS WILL HAVE CAUSED TO HONOURABLE MEMBERS. WE DID, AS HONOURABLE MEMBERS KNOW,RECEIVE A FURTHER COMMUNICATION FROM THE CHINESE SIDE AT ABOUT 1 O’CLOCK YESTERDAY; WE HAD TO CONSIDER THIS URGENTLY DURING THE COURSE OF YESTERDAY AFTERNOON, AND I WOULD NOT HAVE BEEN IN A POSITION TO PROVIDE THE COUNCIL WITH ANY MORE INFORMATION THAN I WAS LAST WEEK. SO I APOLOGISE FOR THAT INCONVENIENCE AND I HOPE THE COUNCIL WILL UNDERSTAND THE REASONS FOR MY ACTION.

I AM, AFTERNOON.

HOWEVER, IN A POSITION TO MAKE /X FURTHER

STATEMENT THIS

DESPITE OUR HOPES AND OUR BEST ENDEAVOURS RIGHT UP UNTILTHIS AFTERNOON, IT HAS SO FAR STILL NOT PROVED POSSIBLE TO RESOLVE THE DIFFERENCES BETWEEN THE BRITISH AND CHINESE SIDES THAT STAND IN THE WAY OF TALKS GETTING UNDERWAY. I PARTICULARLY REGRET THIS, AS WE CONSIDER THESE DIFFERENCES COULD AND SHOULD BE RESOLVED QUICKLY. I REALISE THAT THIS NEWS WILL CAUSE CONSIDERABLE DISAPPOINTMENT THROUGHOUT THE COMMUNITY. IT IS A DISAPPOINTMENT THAT I SHARE, HENCE THE EFFORTS THAT WE HAVE MADE TO ACHIEVE THE PROGRESS WE WOULD ALL LIKE TO SEE.

WE HAVE MADE CLEAR SINCE OCTOBER THAT WE ARE WILLING TO TALK WITHOUT PRE-CONDITIONS. THAT REMAINS OUR POSITION.

IT IS NOT FOR ME, OF COURSE, TO REFLECT THE POSITION OF THE CHINESE SIDE. BUT LET ME SPELL OUT UNEQU I VOCALLY THE BASIS ON WHICH THE BRITISH SIDE HAS BEEN PREPARED TO TALK, SO THE COMMUNITY CAN SEE FOR ITSELF THAT WE HAVE BEHAVED REASONABLY AND SINCERELY IN THESE DISCUSSIONS.

FIRST, WE HAVE SAID TO THE CHINESE SIDE THAT WE ARE PREPARED TO TALK ON THE BASIS OF THE JOINT DECLARATION, THE PRINCIPLE OF CONVERGENCE WITH THE BASIC LAW AND THE RELEVANT UNDERSTANDINGS AND AGREEMENTS REACHED BETWEEN BRITAIN AND CHINA. WE CONSIDER OUR PROPOSALS TO BE WHOLLY COMPATIBLE WITH THESE.

SECONDLY, WE MADE PLAIN THAT IN ANY TALKS THE BRITISH TEAM WOULD INCLUDE THE NECESSARY HONG KONG OFFICIALS WITH THE RELEVANT KNOWLEDGE AND EXPERIENCE, ON THE SAME BASIS AS OTHER OFFICIALS TAKING PART IN THE TALKS. BOTH THE PRIME MINISTER AND THE FOREIGN SECRETARY HAVE MADE THIS POINT PUBLICLY IN THE LAST 48 HOURS. HONG KONG OFFICIALS HAVE PARTICIPATED TN PAST DISCUSSIONS WITH THE CHINESE SIDE AS MEMBERS OF THE BRITISH TEAM, INCLUDING DURING THE NEGOTIATIONS ON THE JOINT DECLARATION AND IN THE JOINT LIAISON GROUP.

/WE HAVE

FRIDAY, MARCH 12, 1993

2

WE HAVE ALSO SAID TO THE CHINESE SIDE THAT SIR ROBIN MCLAREN, THE BRITISH AMBASSADOR TO CHINA, WOULD BE THE BRITISH REPRESENTATIVE, SUPPORTED BY A TEAM CONSISTING OF MICHAEL SZE, THE SECRETARY FOR CONSTITUTIONAL AFFAIRS, WILLIAM EHRMAN, THE POLITICAL ADVISER, PETER LAI, THE DEPUTY SECRETARY FOR CONSTITUTIONAL AFFAIRS, AND PETER RICKETTS, HEAD OF THE HONG KONG DEPARTMENT IN THE FOREIGN AND COMMONWEALTH OFFICE. THERE WOULD BE NO DISTINCTION BETWEEN MEMBERS OF THE TEAM FROM HONG KONG AND FROM LONDON.

LET ME RECAP BRIEFLY THE HISTORY OF OUR RECENT EXCHANGES WITH THE CHINESE SIDE, SO THAT HONOURABLE MEMBERS CAN BE CLEAR IN THEIR OWN MINDS HOW MATTERS HAVE PROCEEDED. AS I INDICATED IN MY STATEMENT LAST WEEK, HAVING RECEIVED A POSITIVE RESPONSE ON THE PRINCIPLE OF TALKS FROM THE CHINESE SIDE, I DECIDED TO POSTPONE OUR ORIGINAL PLAN FOR GAZETTAL ON 12 FEBRUARY, WHILE MAKING CLEAR TO THE CHINESE SIDE THAT THERE COULD NOT BE AN INDEFINITE DELAY, GIVEN THE PRACTICAL NEED TO PRESS AHEAD WITH LEGISLATION. WE PROPOSED AN EARLY STARTING DATE FOR THE TALKS.

DESPITE THE ABSENCE OF A SOLUTION TO THE REMAINING DIFFICULTIES, I DECIDED, WITH THE ADVICE OF THE EXECUTIVE COUNCIL, TO DELAY GAZETTAL FOR A SECOND TIME ON 19 FEBRUARY AND A THIRD TIME ON 26 FEBRUARY. LAST WEEK, I TOLD THE COUNCIL OF OUR DECISION TO DELAY GAZETTAL FOR A FOURTH TIME.

I EXPLAINED TO THE COUNCIL THAT WE WISHED TO GO THE EXTRA MILE AND GIVE THE CHINESE SIDE EVERY OPPORTUNITY TO RESPOND. TODAY IS THE FIFTH FRIDAY SINCE WE ORIGINALLY DECIDED TO DEFER GAZETTAL. UNFORTUNATELY THE OUTSTANDING DIFFERENCES HAVE NOT BEEN RESOLVED AND WE STILL HAVE NO DATE FOR TALKS. I HAVE TO TELL THE COUNCIL THAT WE HAVE NOT EVEN BEEN ABLE TO OBTAIN AGREEMENT, AFTER ALL THIS TIME, THAT AN ANNOUNCEMENT ABOUT TALKS COULD BE MADE EARLY NEXT WEEK. I HAVE MADE CLEAR THAT WE COULD NOT GO ON DEFERRING GAZETTAL INDEFINITELY. HAVING DEFERRED GAZETTAL ON FOUR OCCASIONS, I HAVE THEREFORE DECIDED, WITH THE ADVICE OF THE EXECUTIVE COUNCIL, TO GAZETTE THE DRAFT LEGISLATION THIS AFTERNOON. HAVING TAKEN THIS DECISION, WE WILL HAVE TO JUDGE, IN THE LIGHT OF SUBSEQUENT DEVELOPMENTS, WHEN TO INTRODUCE THE DRAFT LEGISLATION INTO THE LEGISLATIVE COUNCIL.

I WANT TO EMPHASISE TO HONOURABLE MEMBERS AND TO THE COMMUNITY AS A WHOLE THAT WE REMAIN READY TO HOLD TALKS WITH THE CHINESE SIDE WITHOUT PRE-CONDITIONS. THE REMAINING ISSUES ARE MATTERS WHICH, GIVEN THE WILL, COULD BE SOLVED QUICKLY. I STILL HOPE THEY CAN BE. FOR OUR PART, WE HAVE DONE ALL WE REASONABLY CAN. THAT IS HOW WE WILL CONTINUE TO ACT.

THANK YOU MR PRESIDENT.

/PRESIDENT .......

FRIDAY, MARCH 12, 1993

3

FRIDAY, MARCH 12, 1993

PRESIDENT QUESTIONS WILL BE ALLOCATED ON THE SAME BASIS AS NORMAL QUESTION TIME, NAMELY PRIORITY WILL BE GIVEN TO THOSE MEMBERS WHO HAVE ASKED THE LEAST NUMBER OF QUESTIONS DURING GOVERNOR’S QUESTION TIME UP TO THIS POINT. WHERE MEMBERS HAVE EQUAL PRIORITY, SENIORITY WILL DECIDE. I WILL ASK FOR A SHOW OF HANDS BEFORE EACH QUESTION. AN EARLY SHOW OF HANDS WILL NOT ACHIEVE PRIORITY. THE MEMBER CONCERNED, MAY IF HE WISHES, ASK A SUPPLEMENTARY QUESTION FOR THE PURPOSE ONLY OF ELUCIDATION, BUT THE SUPPLEMENTARY SHOULD BE A SHORT, SINGLE QUESTION SO AS NOT TO CUT INTO THE TIME AVAILABLE, THE GOVERNOR HAS TO LEAVE NOT LATER THAN 4.00PM. SHOW OF HANDS:

MR NGAI SHIU-KIT (THROUGH INTERPRETER): MR PRESIDENT, MR GOVERNOR. THE GOVERNOR HAS TOLD US THAT HE INTENDS TO GAZETTE THE PROPOSED CONSTITUTIONAL ARRANGEMENTS AND IF THIS DECISION, THIS IS WHAT YOU SAID, WOULD THAT MEAN THAT YOUR PROPOSALS WOULD BE THE BASIS FOR NEGOTIATION. IS THAT ACTUALLY BEING MADE A PRE-CONDITION? SO YOU’RE SAYING THAT THERE SHOULDN’T BE ANY PRE-CONDITION; SO ARE YOU THEREFORE GOING AGAINST WHAT YOU HAVE SAID ACTUALLY?

GOVERNOR: NO, I WANT TO ASSURE THE HONOURABLE MEMBER AS I’VE SAID ON A LARGE MANY OF PREVIOUS CONDITIONS, EVER SINCE LAST OCTOBER, WE HAVE NO PRE-CONDITIONS WHATSOEVER FOR TALKS. WE HAVEN’T HAD PRECONDITIONS, WE DON’T HAVE PRE-CONDITIONS TODAY, WE WON’T HAVE PRECONDITIONS IN THE FUTURE. IT IS NOT SINCE EARLY FEBRUARY BEEN THE BRITISH GOVERNMENT OR THE HONG KONG GOVERNMENT WHICH HAS BEEN RAISING ISSUES WHICH MIGHT BE CHARACTERISED AS PRE-CONDITIONS FOR TALKS.

MR HENRY TANG: MR PRESIDENT, GOVERNOR, CONSIDERING THAT YOU ARE GAZETTING THE BILL THIS AFTERNOON, WOULD YOU EXPLAIN TO THIS COUNCIL WHY YOU HAVE TO GAZETTE THE ENTIRE BILL, CAN IT NOT BE DONE IN PHASES, BECAUSE THERE ARE CERTAIN ELEMENTS WHICH ARE NOT CONTENTIOUS WITH THE CHINESE AND CAN BE DONE EARLIER WHILE CERTAIN OTHER PHASES CAN BE DONE LATER, SUCH AS THE DISTRICT BOARD ELECTIONS ARE DIFFERENT FROM THE LEGISLATIVE COUNCIL ELECTIONS HAPPENS IN ’94 AND THE OTHER ONE’S IN ’95. COULD YOU EXPLAIN TO THIS COUNCIL PLEASE?

/GOVERNOR .......

It

FRIDAY, MARCH 12, 1993

GOVERNOR: WELL, OF COURSE WE HAVE PROCEEDED IN THAT WAY ALREADY, BECAUSE THE COUNCIL HAS BEFORE IT THE LEGISLATION ON THE ELECTORAL AND BOUNDARIES COMMISSION WHICH IS, I UNDERSTAND, AN ISSUE WHICH HASN’T RAISED CONTROVERSY IN DISCUSSIONS BETWEEN BRITISH AND CHINESE OFFICIALS. I THINK THAT THE HONOURABLE MEMBER WILL OBSERVE WHEN HE LOOKS AT THE BILL, WHEN HE HAS THE OPPORTUNITY OF DOING THAT, AS OF COURSE CHINESE OFFICIALS HAVE HAD THE OPPORTUNITY FOR SOME WEEKS PAST, I THINK THE HONOURABLE MEMBER WILL OBSERVE THAT THE BILL FITS TOGETHER AND FITS TOGETHER, FOR EXAMPLE, WHEN ONE LOOKS AT OUR APPROACH TO DISTRICT BOARD ELECTIONS AND TO THE POSITION OF THE ELECTION COMMITTEE. SO IT ISN’T EASY TO DISENTANGLE THE VARIOUS ELEMENTS OF THE LEGISLATION IN THE WAY THAT THE HONOURABLE MEMBER REQUESTS. CLEARLY, IF, FOR EXAMPLE, YOU WANT TO STAND IN THE DISTRICT BOARD ELECTIONS NEXT YEAR, YOU’D WANT TO BE ABLE BY THIS AUTUMN TO HAVE A PRETTY CLEAR IDEA ABOUT THE BOUNDARIES FOR YOUR LIKELY WARD, YOU’D WANT TO HAVE A PRETTY CLEAR IDEA ABOUT THE ARRANGEMENTS FOR THOSE DISTRICT BOARD ELECTIONS AND THE DISTRICT BOARD ELECTIONS, I REPEAT, HAVE A CONSIDERABLE RELEVANCE TO THE LEGISLATIVE COUNCIL ELECTIONS. THERE IS ONE OTHER POINT THAT I’D PERHAPS LIKE TO MAKE; THE ISSUES THAT WE’RE DISCUSSING AND DEBATING HAVE TO BE RESOLVED SOONER OR LATER AND I WOULD LIKE TO SEE THEM RESOLVED SOONER SO WE CAN GET BACK TO DEBATING OTHER MATTERS. I’M ONLY SORRY THAT IN THE LAST FEW WEEKS, MATTERS HAVE BEEN RAISED WHICH, EVEN THOUGH THEY’VE OCCASIONALLY BEEN THE SOURCE OF CONTROVERSY IN THE PAST, HAVE NEVER CAUSED THE SORT OF OBSTACLES THAT WE SEE TODAY. HONG KONG GOVERNMENT OFFICIALS HAVE BEEN MEMBERS OF THE BRITISH TEAM FOR 10 YEARS OR MORE IN NEGOTIATIONS, WHY NOW IS THAT A PROBLEM?

MR DAVID LI: MR PATTEN, GOVERNOR, LAST FRIDAY YOU MENTIONED THAT ONLY A FEW POINTS OF DISAGREEMENT BETWEEN BRITAIN AND CHINA REMAIN WHICH YOU BELIEVE COULD AND SHOULD BE RESOLVED QUICKLY. WILL YOU INFORM THIS COUNCIL HOW MANY POINTS OF DISAGREEMENT STILL REMAIN UNRESOLVED AND WHAT ARE THEY?

GOVERNOR: I DON’T WANT TO PUT MYSELF IN THE POSITION OF EXPLAINING THE VIEW OF THE CHINESE SIDE TO THESE TALKS ABOUT TALKS. I’VE SET OUT VERY CLEARLY THE BASIS ON WHICH WE WERE PREPARED TO TALK AND I WOULD BE VERY SURPRISED IF THERE WAS ANY MEMBER OF THIS COUNCIL WHO REGARDED THE BASIS THAT WE WERE PREPARED TO ACCEPT AS BEING UNREASONABLE. SOME MIGHT THINK THAT WE’D GONE TOO FAR BUT I THINK BY AND LARGE IT WOULD BE VERY DIFFICULT FOR ANYBODY TO ARGUE THAT WE HAD BEHAVED UNREASONABLY. IT REMAINS THE CASE THAT AFTER ALL THESE WEEKS, I WAS NOT IN A POSITION TODAY TO COME TO THE COUNCIL AND ANNOUNCE A DATE FOR THE COMMENCEMENT OF TALKS. I WASN’T EVEN ABLE TO COME TO THE COUNCIL AND SAY: EARLY NEXT WEEK - IF WE DEFER GAZETTAL TODAY - WE’LL BE ABLE TO ANNOUNCE A DATE FOR THE COMMENCEMENT OF TALKS.

I’VE SET OUT WHAT OUR VIEWS ARE ON THE TEAM THAT SHOULD TAKE PART IN THE TALKS AND IT IS FOR THE CHINESE SIDE TO EXPLAIN WHY THAT WHICH HAS BEEN ACCEPTABLE FOR EXAMPLE IN THE JOINT LIAISON GROUP WHICH SOME CHINESE OFFICIALS WERE SUGGESTING SHOULD BE WHERE WE DISCUSS THESE CONSTITUTIONAL MATTERS, IS NOT ACCEPTABLE FOR THE TALKS WHICH WE’VE BEEN DISCUSSING OVER THE LAST FEW WEEKS. IT’S VERY DIFFICULT I THINK FOR ME TO UNDERSTAND AND I SUSPECT IT WILL BE VERY DIFFICULT FOR MANY MEMBERS OF THE COMMUNITY TO UNDERSTAND.

/MR CHEUNG .......

FRIDAY, MARCH 12, 1993

5

MR CHEUNG MAN-KWONG (THROUGH INTERPRETER): MR GOVERNOR, THE UDHK IS VERY HAPPY TO LEARN THAT THE ELECTORAL BILLS WILL BE GAZETTED BUT WHEN WILL THE BILLS BE SUBMITTED TO THE LEGISLATIVE COUNCIL? DOES IT MEAN THAT THE LEGISLATIVE COUNCIL WILL BE REPRESENTING PEOPLE, BECAUSE IT WILL BE IN A POSITION TO EXAMINE THE BILLS AND WILL BE ENDORSING THE BILLS SO THAT WE CAN INFLUENCE THE SINO-BRIT 1SH NEGOTIATIONS? AND EVEN IF TALKS ARE REOPENED BETWEEN THE BRITISH AND THE CHINESE SIDE, I THINK THE LEGISLATIVE COUNCIL SHOULD NOT ONLY BE ONE OF THE LEGS OF A THREE-LEGGED-STOOL AND ACTUALLY IT SHOULD PLAY A MUCH MORE ACTIVE ROLE THAN THAT. AS LONG AS THE AGREEMENT IS NOT AGAINST THE JOINT DECLARATION THEN DOES IT MEAN THAT THE UK AND THE CHINESE SIDE MUST ACCEPT IT?

GOVERNOR: I THINK THE HONOURABLE MEMBER HAS ASKED TWO QUESTIONS WHICH ARE RATHER DIFFERENT. ONE IS ABOUT THE TIMING OF INTRODUCTION OF LEGISLATION, THE OTHER IS ABOUT THE PRECISE CONSTITUTIONAL ROLE OF THE LEGISLATIVE COUNCIL. AND PERHAPS THE HONOURABLE GENTLEMAN WILL ALLOW ME TO ANSWER BOTH QUESTIONS IN SOME DETA IL.

THERE ARE A NUMBER OF STEPS AS ONE APPROACHES LEGISLATION. FIRST OF ALL, THE EXECUTIVE COUNCIL HAS TO ENDORSE LEGISLATIVE PROPOSALS, AND IN THE CASE OF THE PROPOSALS ON THE 1994 AND 1995 ELECTIONS THAT HAS -BEEN DONE. SECONDLY, THE ADMINISTRATION HAS TO GAZETTE THOSE PROPOSALS AND THAT, AFTER NOT HAVING TAKEN THAT ACTION FOR FOUR FRIDAYS, WE INTEND TO DO TODAY. THE NEXT STEP IS THE INTRODUCTION OF LEGISLATION TO THIS COUNCIL. WE’LL HAVE TO CONSIDER TAKING THAT STEP IN THE LIGHT OF OTHER DEVELOPMENTS BUT I WANT TO SAY TO THE COUNCIL STRAIGHTAWAY THAT I STILL HOPE THAT IT’S POSSIBLE TO HAVE TALKS ABOUT THE ARRANGEMENTS FOR THE 1994/95 ELECTIONS. I SAY THAT, HOWEVER, RECOGNISING THAT TIME MOVES ON, RECOGNISING THAT WE ARE NOT IMAGINING THE DIFFICULTY AS WE PROCEED INTO THIS LEGISLATIVE SESSION OF HAVING LESS AND LESS TIME FOR CONSIDERING THESE VERY IMPORTANT MATTERS. I DON’T IMAGINE THAT MEMBERS OF THIS COUNCIL WILL TAKE A DECISION TO LIMIT THE AMOUNT OF DEBATE THEY WANT TO HAVE ON THESE PROPOSALS MERELY BECAUSE WE HAVE TAKEN AN AMOUNT OF TIME TO ACTUALLY INTRODUCE THEM TO THE LEGISLATIVE COUNCIL. SO WHILE WE’LL HAVE TO TAKE ACCOUNT OF OTHER DEVELOPMENTS, WE’LL ALSO HAVE TO TAKE ACCOUNT OF THE FACT THAT WE NEED TO GIVE THE LEGISLATIVE COUNCIL ADEQUATE TINE TO DISCUSS THESE MATTERS.

/THE HONOURABLE .......

FRIDAY, MARCH 12, 1993

6

THE HONOURABLE GENTLEMAN ALSO REFERRED TO THE ROLE OF THE LEGISLATIVE COUNCIL AND I HOPE THAT HONOURABLE MEMBERS WILL ALLOW ME TO SAY A WORD OR TWO ABOUT THAT BECAUSE IT IS AN ISSUE ON WHICH I THINK IN THE LAST FEW DAYS THERE HAS BEEN SOME UNNECESSARY CONFUSION. LIFE IS DIFFICULT ENOUGH, AS I’VE SAID, ALREADY, WITHOUT IMAGINING OTHER DIFFICULTIES AND WITHOUT CREATING HUGE HYPOTHETICAL CONSTITUTIONAL PROBLEMS. THE ROLE OF THIS COUNCIL IN LEGISLATING IS CLEAR. A NUMBER OF HONOURABLE MEMBERS HAVE IN RECENT DAYS AND WEEKS EXPLAINED THAT ROLE TO OFFICIALS IN PEKING. WE HAVE TO TAKE ACCOUNT OF THE JUDGMENTS OF THIS COUNCIL ON THE LEGISLATION THAT WE PUT BEFORE IT. THE COUNCIL WILL ALSO KNOW OF THE CONSTITUTIONAL POSITION OF THE SOVEREIGN POWER AND THE CONSTITUTIONAL POSITION OF THIS COUNCIL. IT WILL, I’M SURE, BE AWARE OF THE FACT THAT UNDER SECTION 26 - IT MIGHT NOT HAVE REMEMBERED THE NUMBER - OF THE ROYAL INSTRUCTIONS, I CAN’T ACCEPT LEGISLATIVE PROPOSALS WHICH GO AGAINST TREATY OBLIGATIONS ENTERED INTO BY THE UNITED KINGDOM, THE SOVEREIGN POWER. AND IN RELATION TO LEGISLATIVE PROPOSALS, THE ELECTORAL ARRANGEMENTS FOR 1994/95, THERE ARE TWO VERY OBVIOUS TREATY OBLIGATIONS. THE FIRST IS THE JOINT DECLARATION AND THE SECOND IS THE CONVENTION ON CIVIL AND POLITICAL RIGHTS. I DON’T THINK THAT THIS COUNCIL WOULD BE LIKELY TO TAKE A DECISION WHICH WENT AGAINST THOSE TREATY OBLIGATIONS, BUT I THINK THIS COUNCIL WOULD KNOW PERFECTLY WELL WHAT THE GOVERNOR WOULD BE OBLIGED TO DO WERE IT TO DO SO.

NOW TO STATE THAT CONSTITUTIONAL POSITION AS CLEARLY AS I HAVE, DOESN’T IN MY VIEW IN ANY WAY DETRACT FROM THF. FACT THAT THIS COUNCIL HAS TO LEGISLATE ON THE PROPOSALS WHICH I’M GAZETTING TODAY AND WHICH PERHAPS IN DUE COURSE WE WILL BE INTRODUCING.

MRS ELSIE TU: MR PRESIDENT, I WOULD LIKE TO ASK THE GOVERNOR FOR SOME CLARIFICATION, A QUESTION OF CLARIFICATION. I REMEMBER IN THE PAST WHEN HONG KONG PEOPLE ATTENDED THESE MEETINGS, I BELIEVE ERIC HO WAS ONE OF THEM, THEY HAI) TO TAKE BRITISH NATIONALITY BEFORE THEY WERE ABLE TO TAKE PART IN THE MEETINGS. NOW IT SEEMS TO ME THAT IF MR MICHAEL SZE AND MR PETER LAI, IF THEY HAVE NOT HAD TO DO THAT, IT WOULD APPEAR TO ME TO BE A PRE-CONDITION THAT’S BEING MADE, WHICH IS DIFFERENT FROM THE PAST. I’M NOT QUITE CLEAR ON THAT BUT I’D LIKE SOME CLARIFICATION.

GOVERNOR: NO, I DON’T THAT PARTICULAR POINT THOUGH I RAISED WITH ME AND I WILL COME THAT.

THINK THE HONOURABLE LADY IS RIGHT ON WILL - IT’S THE FIRST TIME IT’S BEEN BACK TO HER IF THERE IS A PROBLEM ON

BUT THE ISSUE THAT ARISES IS A PERFECTLY SIMPLE ONE; FOR MANY YEARS, FOR TEN YEARS OR MORE, HONG KONG GOVERNMENT OFFICIALS HAVE BEEN MEMBERS OF THE BRITISH TEAM THAT NEGOTIATES ON MATTERS AFFECTING HONG KONG. ONE OF THE HONG KONG GOVERNMENT OFFICIALS TO WHOM THE HONOURABLE LADY HAS REFERRED, IS A MEMBER OF THE BRITISH TEAM FOR THE JOINT LIAISON GROUP. SO I’M NOT QUITE SURE WHY, SUDDENLY, THIS ISSUE HAS BEEN RAISED.

/LET ME ........

FRIDAY, MARCH 12, 1993

1

LET ME TELL THE HONOURABLE LADY A WORRY WHICH I HAVE, WHICH I’M SURE SHE WILL UNDERSTAND, EVEN IF SHE DOESN’T NECESSARILY AGREE WITH EVERYTHING I SAY OR EVERYTHING I DO, AND I THINK I MIGHT HAVE GOT THAT RIGHT. I DON’T THINK THAT TRYING TO DIMINISH THE STANDING OF HONG KONG GOVERNMENT OFFICIALS WOULD BE A VERY HOPEFUL WAY OF COMMENCING TALKS ABOUT THE POLITICAL DEVELOPMENT AND THE POLITICAL FUTURE OF HONG KONG. I CAN’T MYSELF SEE HOW THAT DEMONSTRATES SINCERITY OR HOW IT DEMONSTRATES A COMMITMENT TO MAKE A SUCCESS OF TALKS, A SUCCESS WHICH I WOULD LIKE TO SEE. I STILL HOPE, I REPEAT IT STRONGLY AGAIN, I STILL HOPE THAT WE CAN HAVE TALKS BUT I DON’T THINK THAT TALKS ON THE BASIS WHICH I’VE DESCRIBED WOULD BE ACCEPTABLE.

DR K C LAM: MR PRESIDENT, WHAT FACTORS WOULD THE GOVERNOR CONSIDER TN HIS DECISION TO DECIDE ON THE TIMING OF THE INTRODUCTION OF THE BILL INTO THIS COUNCIL?

GOVERNOR: I’D HAVE TO TAKE ACCOUNT OF A NUMBER OF FACTORS, FOR EXAMPLE WHETHER DESPITE THE DISAPPOINTING DEVELOPMENTS OF THE LAST DAYS, OR WEEKS OR MONTHS, I’D HAVE TO DECIDE WHETHER THERE SEEMED A REASONABLE BASIS FOR TALKS AND FOR DISCUSSION WHICH WOULD JUSTIFY POSTPONING INTRODUCTION OF THE LEGISLATION. THAT IS THE SORT OF ISSUE WHICH I WOULD HAVE TO CONSIDER. IT MAY HAPPEN IN THE NEXT FEW DAYS, BUT WE’LL OBVIOUSLY KEEP THE MATTER UNDER REVIEW WITH THE EXECUTIVE COUNCIL AND OF COURSE KEEP THE LEGISLATIVE COUNCIL FULLY INFORMED.

DR CONRAD LAM (THROUGH INTERPRETER): MR PRESIDENT, A QUESTION FOR THE GOVERNOR. HONG KONG PEOPLE ARE CONCERNED ABOUT CONSTITUTIONAL DEVELOPMENT. THEY ARE ALSO CONCERNED ABOUT THEIR LIVELIHOOD. WE ARE WORRIED THAT SHOULD THE CHINESE GOVERNMENT AND THE BRITISH GOVERNMENT CANNOT REALLY RESUME TALKS OR BE ON HARMONIOUS RELATIONSHIP, WOULD THAT AFFECT THE AIRPORT DEVELOPMENT AND OTHER PROJECTS STRADDLING 1997? WILL THEY DELIBERATELY MAKE THINGS DIFFICULT IN THOSE ASPECTS AND THEREFORE AFFECT THE LIVELIHOOD AND INFRASTRUCTURE IN HONG KONG? SO ARE THERE ANY MEASURES THAT YOU HAVE IN THE PIPELINE TO PREVENT SUCH THINGS FROM HAPPENING?

GOVERNOR: AS THE HONG KONG GOVERNMENT MADE PLAIN IN THE FINANCIAL SECRETARY’S BUDGET THE OTHER DAY, WE WANT TO SEE GREATER INVESTMENT IN THE INFRASTRUCTURE OF HONG KONG AS WELL AS IN THE SOCIAL AND EDUCATIONAL PROGRAMMES OF HONG KONG, BECAUSE IN OUR JUDGMENT THAT PROVIDES THE BEST BASTS FOR THE CONT INUI NG STABILITY AND PROSPERITY OF THIS TERRITORY, THE BEST BASIS FOR CONTINUING THE ECONOMIC MIRACLE WHICH IS HONG KONG. I DON’T THINK THAT ANYTHING THAT WE HAVE DONE OR THAT WE HAVE SAID HAS IN ANY WAY UNDERMINED THE PROSPECTS OF A BETTER FUTURE WITH STRONGER INFRASTRUCTURE INVESTMENT.

HONOURABLE MEMBERS WILL RECALL WHAT THE BAR COUNCIL HAD TO SAY ABOUT WHAT OTHERS HAD SAID AND DONE ABOUT MATTERS AFFECTING INVESTMENT IN HONG KONG. OTHERS WILL RECALL WHAT THE BAR COUNCIL SAID ABOUT THE EXTENT TO WHICH THOSE REMARKS HAI) VIOLATED THE JOINT DECLARATION AND THE BASIC LAW, NOT REMARKS MADE BY THE HONG KONG GOVERNMENT, NOT REMARKS MADE BY THE BRITISH GOVERNMENT. I VERY MUCH HOPE THAT WE CAN ALL REMEMBER THAT BEFORE 1997 AND AFTER THE RESUMPTION OF CHINESE SOVEREIGNTY IN 1997, OUR PRINCIPAL CONCERN MUST BE THE WELL-BEING OF ORDINARY FAMILIES AND ORDINARY INDIVIDUALS IN HONG KONG, AND I DON’T WANT TO SEE ANYBODY PLAYING POLITICS WITH THAT.

/MR LAU .........

FRIDAY, MARCH 12, 1993

8

MR LAU CHIN-SHEK (THROUGH INTERPRETER): THANK YOU MR PRESIDENT, WILL THE GOVERNOR TELL US THIS. JUST SUPPOSE TALKS CANNOT BE REOPENED, HOW DOES THE GOVERNMENT PLAN TO PREPARE EOR THE 94/95 ELECTION, WHAT WILL BE THE TIMETABLE EOR IT? TN THE CASE WHERE TALKS ARE REOPENED, HOW CAN YOU MAKE SURE THAT THE TALKS CAN YIELD RESULTS BEFORE JULY SO THAT YOU CAN LEGISLATE TO PREPARE FOR THE 94/95 ELECTION?

GOVERNOR: IF THERE ARE NO TALKS, THEN IN DUE COURSE THIS LEGISLATIVE COUNCIL WILL CONSIDER THE PROPOSALS THAT WE HAVE PUT TO IT. I HAVE A GREAT DEAL OF FAITH AND CONFIDENCE IN THIS LEGISLATIVE COUNCIL. AS I SAID LAST WEEK, NO RUBBER-STAMP, AS I DISCOVER WEDNESDAY AFTER WEDNESDAY. I HAVE GREAT FAITH IN THIS COUNCIL TO PRODUCE PROPOSALS, TO AGREE PROPOSALS, WHICH WILL BE IN THE BEST INTERESTS OF THE PEOPLE OF HONG KONG BECAUSE I THINK THIS COUNCIL IS IN VERY CLOSE TOUCH WITH THE MOOD OF THE PEOPLE OF HONG KONG AND UNDERSTANDS THEIR ASPIRATIONS AND UNDERSTANDS HOW IMPORTANT IT IS TO SECURE THEIR HEARTS AND MINDS. SO I DON’T HAVE ANY LACK OF CONFIDENCE IN THE ABILITY OF THIS COUNCIL TO COME TO SENSIBLE, BALANCED, MODERATE, MODEST DECISIONS ABOUT THE ARRANGEMENTS FOR THE 1994 AND ’95 ELECTIONS IN GOOD TIME FOR US TO ENSURE THAT THOSE ELECTIONS ARE SMOOTHLY CONDUCTED.

IF TALKS OPEN, WHICH I STILL HOPE WILL HAPPEN, THEN THE HONOURABLE MEMBER IS QUITE RIGHT TO SAY THAT THEY WOULD NEED TO BE CONCLUDED ONE WAY OR THE OTHER, IN TIME TO ALLOW THIS LEGISLATIVE COUNCIL TO MAKE THE NECESSARY ARRANGEMENTS FOR 1994 AND ’95. BECAUSE AS I SAID EARLIER, I DON’T THINK THERE IS GOING TO BE A SELF-DENYING ORDINANCE IN THIS COUNCIL WHICH ENCOURAGES HONOURABLE MEMBERS TO AGREE THAT THEY WON’T DEBATE THE PROPOSALS BEFORE THEM FOR LONGER THAN A COUPLE OF WEEKS OR SOME RIDICULOUS TIME CONSTRAINT LIKE THAT. THE LONGER, OF COURSE, IT TAKES TO GET TALKS GOING, THE LESS TIME THERE IS FOR TALKS SINCE TALKS HAVE TO FINISH IN TIME TO MAKE THE NECESSARY LEGISLATIVE ARRANGEMENTS.

MR GILBERT LEUNG (THROUGH INTERPRETER): MR GOVERNOR, YOU HAVE DECIDED TODAY TO GAZETTE YOUR CONSTITUTIONAL PROPOSALS. THAT UNDOUBTEDLY WILL

INCREASE THE CONFLICT BETWEEN CHINA AND BRITAIN AND WILL HAVE A GREAT

IMPACT ON HONG KONG SOCIETY. HAS THE HONG KONG GOVERNMENT ASSESSED

THE IMPACT THIS ACTION WILL HAVE ON OUR SOCIETY AND WIIAT MEASURES ARE THERE TO REDUCE THE IMPACT ON OUR PEOPLE BECAUSE OF THIS MOVE, WILL ’BUILD THEIR OWN STOVE’ CONTINGENCY PLANS THAT THE HONG KONG GOVERNMENT HAS?

CONTINGENT IF CHINA, ARE THERE

GOVERNOR: I’M NOT SURE THAT THE HONOURABLE MEMBER IS RIGHT TO ASSUME THE WORST OF CHINA AND CHINESE OFFICIALS. IS THE HONOURABLE MEMBER SERIOUSLY SAYING THAT CHINA WILL ATTEMPT TO MAKE THE NEXT FOUR YEARS AS DIFFICULT AS POSSIBLE FOR THE ORDINARY PEOPLE OF HONG KONG? I DON’T THINK THAT WOULD BE A VERY SENSIBLE THING TO DO AND I DON’T BELIEVE THAT CHINA WILL REGARD THAT AS BEING A SENSIBLE BASIS FOR THE RESUMPTION OF CHINESE SOVEREIGNTY TN 1997. 1 HOPE THAT CHINA WILL STILL JOIN US IN TALKING ABOUT THE 1994/95 ARRANGEMENTS, I REPEAT WE HAVE SET NO PRE-CONDITIONS FOR THOSE TALKS. IF THERE AREN’T TO BE TALKS THEN I HOPE THAT CHINESE OFFICIALS WILL HAVE THE SAME CONFIDENCE IN THE GOOD SENSE OF THE PEOPLE OF HONG KONG THAT I DO.

/CAN I ........

FRIDAY, MARCH 12, 1993

9

CAN I JUST, ON A POINT OF ELUCIDATION, IN RESPONSE TO ANOTHER QUESTION - A QUESTION FROM THE HONOURABLE LADY WHO ASKED ME ABOUT MEMBERS OF BRITISH TEAMS IN FORMAL DIPLOMATIC TALKS WITH THE CHINESE WHO DID NOT HAVE BRITISH PASSPORTS - I, OR OTHERS HAVE IDENTIFIED THREE SUCH OFFICIALS FOR ME AND I CAN GIVE THOSE NAMES TO THE HONOURABLE LADY ANY TIME SHE WOULD LIKE.

MR ERIC LI: MR PRESIDENT, MR GOVERNOR, YOU HAVE NOW GAZETTED A BILL AND NOT MADE A DECISION TO INTRODUCE IT TO THIS COUNCIL. THAT CLEARLY SEEMS TO INDICATE THAT YOU STILL HOPE THAT TALKS WILL RESUME AND THAT YOU MAY BE WILLING TO AMEND YOUR PROPOSALS BEFORE TAKING THEM TO THIS COUNCIL. DO YOU HAVE AN ABSOLUTE DEADLINE BEYOND WHICH YOU ARE NOT PREPARED TO WAIT FOR THE CHINESE BEFORE INTRODUCING THE FINAL BILL TO THE COUNCIL AND ONCE THE BILL HAS BEEN INTRODUCED, DOES IT IMPLY THAT YOU WILL NO LONGER CONSIDER MAKING ANY AMENDMENT TO THE BILL BY THE GOVERNMENT IRRESPECTIVE OF THE OUTCOME OF THE TALKS?

GOVERNOR: ON THE LATTER POINT, WHETHER OR NOT THERE ARE TALKS I CERTAINLY COULDN’T GIVE ANY GUARANTEE THAT THE EXECUTIVE WOULDN’T SEEK TO AMEND THE LEGISLATION WHEN IT’S BEING CONSIDERED BY THE LEGISLATIVE COUNCIL DURING ITS PASSAGE THROUGH THIS COUNCIL. FOR EXAMPLE, LET ME TAKE AN OBVIOUS POINT; I THINK THAT INDIVIDUAL COUNCILLORS WILL HAVE VIEWS ABOUT THE LEGISLATION AND THEY MAY HAVE VIEWS WHICH ARE DIFFERENT FROM THE GOVERNMENT’S, AND THEY MAY HAVE VIEWS WHICH ARE DIFFERENT FROM THE GOVERNMENT’S AND COMMAND MAJORITY SUPPORT IN THIS COUNCIL, IN WHICH CASE THE GOVERNMENT MAY WELL HAVE TO TAKE ACCOUNT OF THOSE VIEWS IN SUBSEQUENT PARTS OF THE BILL. IT MAY HAVE TO AMEND OTHER PARTS OF THE BILL TO TAKE ACCOUNT OF AMENDMENTS MADE BY THE LEGISLATIVE COUNCIL ITSELF. ON THE HONOURABLE GENTLEMAN’S FIRST QUESTION; WE DON’T HAVE AN ABSOLUTE DEADLINE. IF I’D HAD AN ABSOLUTE DEADLINE I WOULDN’T HAVE BEEN ABLE TO WAIT SINCE EARLY FEBRUARY IN ORDER TO GAZETTE THE LEGISLATION BUT AS I’VE SAID BEFORE, WE DO WANT TO ENSURE THAT THE COUNCIL HAS THE AMOUNT OF TIME IT WILL REQUIRE AND THAT IT WOULD WANT IN ORDER TO DISCUSS THE PROPOSALS THAT ARE BEFORE IT. I THINK IT WOULD BE PRETTY INSULTING TO THE COUNCIL IF 1 WAS TO SAY WE DON’T NEED TO HAVE ANY IDEA OF WHEN WE BRING THE BILLS FORWARD INTO THE COUNCIL BECAUSE THE COUNCIL WILL SPEND AS LITTLE TIME AS WE REQUIRE ON DEBATING THESE MATTERS. I DON’T WANT TO SET A DEADLINE, I DON’T WANT TO RING A DATE TN THE CALENDAR, BUT TIME IS NOT INFINITE AND IF THERE ARE NOT GOING TO BE TALKS, THEN I’M SURE THAT MANY HONOURABLE MEMBERS WILL TAKE THE VIEW THAT WE SHOULD GET ON WITH LEGISLATING.

MR STEPHEN CHEONG: GOVERNOR, IT’S VERY DISAPPOINTING THAT THERE IS NO TALK BEING ANNOUNCED TODAY, AND SHOULD FURTHER ATTEMPTS FOR TALKS FAIL WILL THE GOVERNOR PLEASE INFORM THIS COUNCIL HOW YOU, SIR, AND THE BRITISH GOVERNMENT, IS TO ENSURE A SMOOTH TRANSITION PROMISED TO US IN THE JOINT DECLARATION WILL HAPPEN IF CONTINUITY OF SYSTEMS CANNOT BE GUARANTEED? AND WILL THE BRITISH GOVERNMENT DO YOUR OWN THING BETWEEN NOW AND 1997 AND THEN LET THE CHINESE GOVERNMENT 1)0 THEIR OWN THING AFTER 1997?

/GOVERNOR .......

FRIDAY, MARCH 12, 1993

- 10 -

GOVERNOR: I WOULD LIKE TO SEE, AS MUCH AS THE HONOURABLE MEMBER, A SMOOTH TRANSITION. I WOULD LIKE TO SEE A SMOOTH TRANSITION OF ARRANGEMENTS, FOR EXAMPLE, FOR ELECTIONS WHICH ARE FAIR RATHER THAN A SMOOTH TRANSITION OF ARRANGEMENTS WHICH WEREN’T FAIR. IT WOULDN’T SEEM TO ME TO MAKE VERY MUCH SENSE TO HAVE A SMOOTH TRANSITION OF ARRANGEMENTS WHICH THIS LEGISLATIVE COUNCIL AND WHICH THE COMMUNITY AS A WHOLE MIGHT REGARD AS DISHONOURABLE. SO WE WANT TO SEE A SMOOTH TRANSITION BUT WE ALSO WANT TO SEE A SMOOTH TRANSITION OF SENSIBLE ELECTORAL AND ADMINISTRATIVE ARRANGEMENTS.

THERE IS ONE OTHER THING THAT I SHOULD SAY. IN ORDER TO SECURE A SMOOTH TRANSITION IT IS ABSOLUTELY RIGHT TO BE AS ACCOMMODATING AND CONCILIATORY AS ONE POSSIBLY CAN BE. WHILE MILLIONS OF WORDS OF ABUSE HAVE BEEN HEAPED ON THE HONG KONG GOVERNMENT AND THE HONG KONG GOVERNOR OVER THE LAST MONTHS, I’VE TRIED TO KEEP AS MILD AND QUIET AND CALM AS POSSIBLE. BUT NOBODY SHOULD THINK THAT BEING ACCOMMODATING, BEING CONCILIATORY IS THE SAME AS ABANDONING YOUR PRINCIPLES. I THINK THAT THIS COUNCIL WOULD BE SURPRISED TO DISCOVER THAT WHAT IS MEANT BY A SMOOTH TRANSITION IS THAT THE HONG KONG GOVERNMENT AND THE HONG KONG PEOPLE SHOULD NEVER, IN DISCUSSIONS, HAVE A BOTTOM LINE. THAT’S NOT THE BASIS FOR A SENSIBLE SMOOTH TRANSITION.

MR STEPHEN CHEONG: SIR, YOU HAVEN'T ANSWERED MY SECOND PART OF THE QUESTION.

GOVERNOR: WHICH WAS?

MR STEPHEN CHEONG: WILL THE BRITISH GOVERNMENT DO THEIR OWN THING NOW AND LET THE CHINESE GOVERNMENT DO THEIR OWN THING AFTER 1997?

GOVERNOR: WHAT WE WILL ATTEMPT TO DO IS TO PUT IN PLACE ARRANGEMENTS, NOT ONLY WHICH ARE WHOLLY IN ACCORDANCE WITH THE JOINT DECLARATION BUT WHICH SEEK TO BUTTRESS THE PRINCIPLES ENSHRINED IN THE JOINT DECLARATION. WE WILL ALSO TRY TO ENSURE THAT WHATEVER ARRANGEMENTS ARE PUT IN PLACE IN HONG KONG AND ENSURE IN OUR VIEW AND IN THE VIEW OF THIS COUNCIL, A SMOOTH TRANSITION TO THE BASIC LAW. AND I VERY MUCH HOPE THAT THE SORT OF ARRANGEMENTS WHICH THIS COUNCIL WOULD FIND ACCEPTABLE BEFORE 1997 WILL BE FOUND ACCEPTABLE BY A CREDIBLE LEGISLATIVE COUNCIL AFTER 1997, TOO.

MR HOWARD YOUNG: MR PRESIDENT, SIR, ALTHOUGH YOU ARE RIGHT IN SAYING

THAT OVER THE LAST FORTNIGHT VARIOUS GROUPS HAVE EXPLAINED TO

OFFICIALS IN BEIJING THE SIGNIFICANCE AND NECESSITY OF LEGISLATION PASSED IN THE COUNCIL, I WOULD THINK THAT TIME CONSTRAINTS MAY NOT HAVE BEEN ABLE TO EXPLAIN THESE TO VERY MINUTE DETAILS. SO WILL THE GOVERNMENT EXERT ALL EFFORTS TO ALSO MAKE CLEAR THAT THERE IS A DISTINCTION BETWEEN GAZETTING AND ACTUALLY INTRODUCING IN THE COUNCIL, AND THAT LEGALLY AND PROCEDURE-WISE IT IS ALSO POSSIBLE THAT SHOULD TALKS COMMENCE AFTER GAZETTING, THEN THERE COULD BE EVEN GAZETTAL OF AMENDMENTS OR WHATEVER BEFORE INTRODUCTION THAT WOULD TAKE INTO ACCOUNT ANY REASONABLE AND FAIR CONCLUSIONS OF ANY NEGOTIATIONS

BETWEEN GAZETTAL AND INTRODUCTION INTO THE COUNCIL?

/GOVERNOR

FRIDAY, MARCH 12, 1993

11

GOVERNOR: WE’VE MADE IT CLEAR IN CONTACTS OVER RECENT WEEKS THAT THERE IS A DIFFERENCE BETWEEN GAZETTAL AND THE INTRODUCTION OF LEGISLATION. I THINK I’VE MADE IT CRYSTAL CLEAR AGAIN THIS AFTERNOON AND SAID THAT WE STILL HOPE THAT THE PROBLEMS WHICH ALAS HAVE BECOME LARGER RATHER THAN SMALLER IN THE LAST DAY OR TWO, IF THOSE CAN BE RESOLVED, WE STILL HOPE THAT THERE CAN BE TALKS. THAT’S WHY I MADE THE REMARKS I DID EARLIER ABOUT HAVING TO TAKE ACCOUNT OF OTHER DEVELOPMENTS IN REACHING A DECISION ON WHEN TO INTRODUCE THE LEGISLATION. IT’S OBVIOUSLY BEEN A DISAPPOINTMENT THAT FRIDAY AFTER FRIDAY AFTER FRIDAY AFTER FRIDAY WE’VE DEFERRED GAZETTAL BUT STILL HAVEN’T MADE THE PROGRESS WHICH WE WOULD LIKE TO HAVE MADE, DESPITE THE FACT THAT WE HAVE HAD NO PRE-CONDITIONS FOR TALKS.

MR WONG WAI-YIN (THROUGH INTERPRETER): THANK YOU MR PRESIDENT. MR GOVERNOR, IF THE CHINESE GOVERNMENT AND THE BRITISH GOVERNMENT CAN, ON POINTS OF DIFFERENCES THAT YOU HAVE MENTIONED, START TO TALK AGAIN AND YET THE CHINESE GOVERNMENT IS ASKING YOU TO DELAY INTRODUCING THE LEGISLATION TO LEGCO AND ALSO DURING THE PERIOD OF SCRUTINY BY LEGISLATIVE COUNCIL, THEY MIGHT ASK YOU TO WITHDRAW THE LEGISLATION, HOW WOULD YOU REACT? IF YOU WILL NOT DEFER INTRODUCTION INTO COUNCIL OR WITHDRAW THE LEGISLATION FROM THE COUNCIL, WHAT ARE THE FACTORS THAT MIGHT AFFECT SUCH THINGS AND MAKE IT HAPPEN?

GOVERNOR: I MAY BE BEING LESS INTELLIGENT THAN I SHOULD BE, BUT I’M NOT SURE THAT I WHOLLY FOLLOW THE HONOURABLE MEMBER’S QUESTION. THERE WAS A PILE OF HYPOTHOSES BUT I WASN’T SURE WHAT HE WANTED ME TO

SAY WHEN HE WAS STANDING ON TOP OF THEM. IF THE HONOURABLE GENTLEMAN

I THINK MAY ’ARE THERE LEGISLATIVE LEGISLATIVE IT WOULD BE

AND I HOPE THAT I’M SERIOUSLY AND SINCERELY ANSWERING WHAT BE HIS POINT - IF THE HONOURABLE GENTLEMAN IS SAYING CIRCUMSTANCES IN WHICH THE ADMINISTRATION WOULD AMEND PROPOSALS ON THE ’94 AND ’95 ELECTIONS PUT BEFORE THE COUNCIL’. THEN THE ANSWER TO THAT QUESTION MUST BE YES.

BIGOTED, NARROW-MINDED, TO SAY ANYTHING OTHER THAN THAT BUT ONE WOULD HAVE TO BE CONVINCED THAT THE PROPOSALS WHICH WOULD RESULT FROM AMENDMENT WERE BETTER THAN THE PROPOSALS WHICH ARE IN THE LEGISLATION WHICH IS BEING GAZETTED TODAY. THERE WOULD BE LITTLE POINT IN PUTTING BEFORE THE COUNCIL PROPOSALS WHICH WE THOUGHT WERE LESS GOOD OR LESS LIKELY TO COMMAND THE ASSENT AND ACQUIESCENCE OF THE COMMUNITY. LITTLE POINT IN PUTTING SUCH PROPOSALS FORWARD BUI I DON’T WANT ON THIS OCCASION OR ON ANY OTHER TO GIVE THE HONOURABLE MEMBER THE IMPRESSION THAT OUR PROPOSALS ARE CARVED IN TABLETS OF STONE WHICH IS NOT TO SAY THAT THEY’RE WRITTEN IN INVISIBLE OR EASILY WIPEABLE INK.

MR WONG WAI-YIN (THROUGH INTERPRETER); I BEG YOUR PARDON MR GOVERNOR. MAY I VERY BRIEFLY REPHRASE MY QUESTION. IF CHINA AND BRITAIN CAN RESOLVE THEIR DIFFERENCES AND ARE WILLING TO SIT DOWN AND RESUME TALKS ON CONSTITUTIONAL ARRANGEMENTS - AND YET THE CHINESE ARE SAYING THAT YOU SHOULD DEFER INTRODUCING THE LEGISLATION TO LEGCO OR DURING THE PERIOD OF IT’S EXMAINATION BY THE LEGISLATIVE COUNCIL YOU SHOULD WITHDRAW THEM - NOW WILL YOU DO WHAT THEY ASK YOU? NOW IF YOUR ANSWER IS NO THEN WHAT CIRCUMSTANCES WILL LEAD TO YOUR WITHDRAWING THE LEGISLATIVE PROPOSALS FROM LEGCO?

/GOVERNOR .......

12

FRIDAY, MARCH 12, 1993

GOVERNOR: I’M STILL HAVING SOME DIFFICULTY IN FOLLOWING THE HONOURABLE GENTLEMAN’S QUESTION AND PERHAPS THAT’S BECAUSE IT’S THE END OF WHAT HAS BEEN A WEEK THAT’S LASTED ABOUT FOURTEEN DAYS’ LET ME SAY, AND J HOPE THAT I’M ANSWERING THE SPIRIT OF THE HONOURABLE GENTLEMAN’S QUESTION, EVEN IF I’VE FAILED TO IDENTIFY SOME OF ITS’ INNER SIGNIFICANCE. IF WE WERE TO HAVE TALKS WITH CHINESE OFFICIALS, THERE WOULD BE NO POINT LN HAVING THOSE TALKS IN OTHER THAN A CONSTRUCTIVE SPIRIT - THAT TRUE, I’VE MADE THAT CLEAR AGAIN, AGAIN AND AGAIN. THE TRUTH IS THAT I THINK TALKS WOULD BE VERY DIFFICULT BUT THAT DOESN’T MEAN THAT ONE WOULDN’T ENTER INTO THEM IN AS HOPEFUL AND POSITIVE A SPIRIT AS POSSIBLE. ONE OF THE THINGS THAT I WAS HOPING WE WOULD DISCOVER EARLY IN ANY TALKS WAS WHAT COUNTER-PROPOSALS CHINESE OFFICIALS HAD TO OFFER IN COMPARISON TO THOSE THAT WE’VE HAD ON THE TABLE SINCE LAST OCTOBER, ANY COUNTER-PROPOSALS TO THOSE PUT TOGETHER BY THE COMMUNITY IN THAT VAST COMPENDIUM THAT WE’VE ASSEMBLED OF ALTERNATIVES. THERE HAVE BEEN MILLIONS OF WORDS FROM CHINESE OFFICIALS AND NEWSPAPERS WHICH CUSTOMARILY IN A SPIRIT OF BELIEF OF FREE-SPEECH SUPPORT THE POSITION OF CHINESE OFFICIALS - MILLIONS OF WORDS OF CRITICISM OF THE PROPOSALS WHICH THE GOVERNMENT HAVE PUT FORWARD, CRITICISM OF THE PROPOSALS WHICH HONOURABLE MEMBERS HAVE PUT FORWARD, CRITICISM OF PROPOSALS WHICH OTHER MEMBERS OF THE COMMUNITY HAVE PUT FORWARD. THERE HAVEN’T BEEN TEN WORDS WHICH HAVE ACTUALLY DESCRIBED A COUNTER-SET OF CHINESE PROPOSALS. SO, IF THERE ARE TALKS, I WOULD HOPE THAT WE’D BE ABLE TO LOOK AT CHINESE PROPOSALS AND I REPEAT WE WOULD GO INTO TALKS WITH AN OPEN MIND AND IF TALKS PRODUCED BETTER PROPOSALS THAN THE ONES’ WE’VE PUT ON THE TABLE, I WOULD HAVE TO SHARE THAT PERCEPTION WITH THE MEMBERS OF THE LEGISLATIVE COUNCIL AND TRY TO PERSUADE THEM OF IT.

MR HA WING-HO (THROUGH INTERPRETER): THANK YOU MR PRESIDENT. I WOULD LIKE TO ASK THE GOVERNOR THIS - SINCE THE ELECTORAL BILL WILL BE GAZETTED THIS AFTERNOON AND SO WILL THE UK CONTINUE TO LOBBY THE VARIOUS COUNTRIES IN THE INTERNATIONAL COMMUNTY TO LOBBY FOR THEIR SUPPORT TO THESE PROPOSALS?

GOVERNOR: THE UNITED KINGDOM GOVERNMENT HASN’T BEEN DOING THAT, NOR HAS THE HONG KONG GOVERNMENT AND THE UNITED KINGDOM GOVERNMENT WON’T DO THAT, NOR WILL THE HONG KONG GOVRNMENT. WHAT WE DO PERCEIVE IS THAT MANY COUNTRIES, NOT SURPRISINGLY ARE INTERESTED IN WHAT HAPPENS IN HONG KONG AND HOPE THAT HONG KONG WILL ENJOY AS SUCCESSFUL A FUTURE AS IT HAS HAD A RECENT PAST. WE FIND THAT MANY GOVERNMENTS IN OTHER COUNTRIES, WHILE AWARE OF THE FACT THAT THE IMPLEMENTATION OF THE JOINT DECLARATION IS A MATTER FOR THE PRESENT AND THE SOVEREIGN POWER, TAKE INEVITABLY AN INTEREST IN THAT SUCCESSFUL IMPLEMENTATION AND ARE SURPRISED THAT THE MODEST PROPOSALS WHICH HAVE BEEN PUT FORWARD BY THE GOVERNMENT ABOUT THE 1994/95 ELECTIONS HAVE DRAWN SUCH A REACTION FROM CHINA. THAT IS NOT INTERNATIONALISATION OF THE ISSUE AND I’M SURE THAT CHINESE OFFICIALS DIDN’T THINK THAT SENIOR MINISTER LEE KUAN YEW’S WIEWS ON HONG KONG REPRESENTED INTERNATIONALISATION OF THE ISSUE. THAT JUST RELFECTS THE FACT THAT HONG KONG IS ONE OF THE INTERNATIONAL CENTRES OF THE WORLD, IS ONE OF THE MOST IMPORTANT COMMUNITIES IN THE WORLD AND MANY PEOPLE LOOK AT WHAT HAPPENS IN HONG KONG AS A TOUCH-STONE FOR THEIR VIEWS ON MANY OTHER THINGS. I WILL CONTINUE AS PREVIOUS GOVERNORS HAVE DONE TO REPRESENT HONG KONG IN OTHER COUNTRIES. I WILL CONTINUE TO EXPLAIN WHAT’S HAPPENFNG IN HONG KONG BOTH HERE AND IN OTHER COUNTRIES, THAT WON’T BE INTERNATIONALISING HONG KONG, IT WILL BE DOING WHAT I’M OBLIGED TO DO TODAY AND WHAT THE CHIEF EXECUTIVE OF THE SAR GOVERNMENT WILL BE OBLIGED TO DO AFTER 1997.

/MR EDWARD

FRIDAY, MARCH 12, 1993

13

MR EDWARD HO: MR PRESIDENT, GOVERNOR, ALTHOUGH YOU HAVE DECIDED THAT TIME HAS RUN OUT AND YOU HAVE TO GAZETTE THE LEGISLATIVE PROPOSALS NO LATER THAN TODAY, YET YOU HAVE INDICATED THAT YOU HAVE NOT DECIDED WHEN YOU WILL INTRODUCE THESE LEGISLATIVE PROPOSALS TO THIS COUNCIL. IF YOU CAN DO THE LATTER, WHY CAN’T YOU POSTPONE THE FORMER, THAT IS DEFER THE GAZETTAL UNTIL IT WAS ABSOLUTELY NECESSARY? IS IT BECAUSE YOU’RE WORRIED ABOUT ANY CRITICISMS THAT MAY BE PUT TO YOU OF POSSIBLY CAVING-IN TO THE CHINESE? AND FURTHER TO THAT, HAVE YOU TAKEN ANY SOUNDINGS FROM THIS COUNCIL, MEMBERS OF THIS COUNCIL, AS TO THE TIMING OF THE GAZETTAL AND ARE YOU PREPARED TO TAKE SOUNDINGS FROM THIS COUNCIL ON THE TIMING OF INTRODUCTION OF THOSE PROPOSALS TO THIS COUNCIL?

GOVERNOR: IF I WAS WORRIED ABOUT CRITICIMS, I GUESS THAT I WOULD HAVE PURSUED A RATHER DIFFERENT PATH OVER RECENT MONTHS. I DON’T THINK THAT POLITICAL LEADERSHIP, 1 DON’T THINK THAT LEADERSHIP OF A COMMUNITY, IS ABOUT LOOKING OVER YOUR SHOULDER THE WHOLE TIME AT CRITICISM. I THINK THAT IF I ATTEMPTED TO GOVERN HONG KONG IN ACCORDANCE WITH THE PLAUDITS OF 'WEN WET PO’ I’D TAKE SOME PRETTY CURIOUS DECISIONS. WE HAVE TO TAKE DECISIONS ABOUT LEGISLATION A STEP AT A TIME. I EXPLAINED EARLIER THAT THE FIRST DECISION FOR US TO TAKE WAS THE DECISION OF THE EXECUTIVE COUNCIL TO ENDORSE LEGISLATIVE PROPOSALS, AND WE DID THAT. THE NEXT DECISION IS THE DECISION TO GAZETTE. THE THIRD STEP, THE THIRD DECISION, IS THE DECISION WHEN TO INTRODUCE LEGISLATION. YOU CAN’T TAKE THE THIRD DECISION WITHOUT TAKING THE SECOND.

BUT I DO SUGGEST TO THE HONOURABLE MEMBER, AND TO OTHER HONOURABLE MEMBERS, THAT THEY LOOK CAREFULLY AT MY STATEMENT, THAT THEY CONSIDER WHAT WE HAVE BEEN SAYING IN THE LAST WEEKS TO CHINESE OFFICIALS, THAT THEY CONSIDER WHETHER THERE IS ANY ELEMENT, ANY ELEMENT AT ALL, OF THE PROPOSALS THAT WE HAVE BEEN PREPARED TO STAND ON WHICH IS UNREASONABLE. WHAT, IN THE ARRANGEMENTS WHICH WE SUGGESTED, DOES THE HONOURABLE GENTLEMAN THINK WAS AN UNREASONABLE STANCE BY THE HONG KONG GOVERNMENT? THAT’S A DECISION WHICH THE WHOLE LEGISLATIVE COUNCIL AND THE WHOLE COMMUNITY SHOULD ACTUALLY TAKE ACCOUNT OF. I DON’T THINK THAT IT’S THE VIEW OF THE COMMUNITY OR THE VIEW OF INDIVIDUAL LEGISLATIVE COUNCILLORS THAT THE HONG KONG GOVERNMENT SHOULD NEVER, EVER, UNDER ANY CIRCUMSTANCES, HAVE A BACKBONE, OR TO PUT IT ANOTHER WAY, HAVE A BOTTOM LINE. THAT WOULD BE A VERY CURIOUS WAY TO GOVERN HONG KONG.

THE HONOURABLE GENTLEMAN ASKS NEXT, WHETHER WE WILL TAKE ACCOUNT OF THE VIEWS OF THE LEGISLATIVE COUNCIL IN THE DECISION THAT WE TAKE ON INTRODUCING THE LEGISLATION. WE’LL TAKE ACCOUNT OF THE VIEWS OF THE LEGISLATIVE COUNCIL ON THAT, AND WE’LL TAKE ACCOUNT OF THE VIEWS OF THE COMMUNITY ON THAT, BUT I DON’T BELIEVE THAT THE HONOURABLE MEMBER OR OTHER LEGISLATORS ARE GOING TO SAY TO THE GOVERNMENT: WE WILL GIVE YOU A GUARANTEE THAT WE WON’T NEED VERY MUCH TIME TO DEBATE THESE BILLS, SO YOU CAN GO ON PUTTING OFF INTRODUCING THEM TO THE LEGISLATIVE COUNCIL AS LONG AS YOU LIKE. I DON’T THINK THAT’S GOING TO BE THE POSITION OF LEGISLATIVE COUNCILLORS. I’D BE VERY SURPRISED IF IT WAS.

/MR EDWARD .......

FRIDAY, MARCH 12, 1993

14

MR EDWARD HO: I THINK THE GOVERNOR HAS MISUNDERSTOOD MY FIRST QUESTION. MY FIRST QUESTION WAS NOT RELATING TO THE REASONABLENESS OF THE PROPOSALS, IT WAS REALLY TALKING ABOUT THE TIMING BETWEEN GAZETTAL AND INTRODUCTION. SO FOR INSTANCE, IF INTRODUCTION WERE NOT TO TAKE PLACE IN THE NEXT SEVEN DAYS, THEN MY QUESTION IS: WHY CAN’T THE GAZETTAL BE DEFERRED SEVEN DAYS? BECAUSE INTRODUCTION AND GAZETTAL COULD TAKE - MORE OR LESS IN THE SAME MOMENTS.

GOVERNOR: BUT AT ANY STAGE WHEN WE GAZETTE, THE SAME QUESTION ABOUT INTRODUCTION COMES UP. I COULD - IF I WASN’T LEADING A GOVERNMENT OF SUCH LEGENDARY PATIENCE - I COULD TAKE THE VIEW THAT WE SHOULD PROCEED, IN VIEW OF OUR EXPERIENCE OVER THE LAST FOUR OR FIVE WEEKS, DIRECTLY TO INTRODUCE THE LEGISLATION. I’VE SAID AGAIN AND AGAIN THIS AFTERNOON THAT WE’LL WANT TO LOOK AT OTHER DEVELOPMENTS AND STILL HOPE THAT WE CAN HAVE TALKS. BUT I THINK IF I’D COME TO THE COUNCIL THIS AFTERNOON AND SAID TO THE COUNCIL: WE HAVEN’T GOT A DATE FOR TALKS; WE HAVEN’T EVEN GOT A DATE WHEN I’LL BE ABLE TO GIVE YOU A DATE FOR TALKS; WE HAVEN’T GOT AGREEMENT THAT HONG KONG GOVERNMENT OFFICIALS SHOULD BE PART OF THE BRITISH TEAM AS THEY HAVE BEEN FOR THE LAST 10 YEARS. IF I’D COME TO THE LEGISLATIVE COUNCIL THIS AFTERNOON SAYING ALL THAT AND THEN GOING ON TO SAY: NEVERTHELESS, WE WON’T GAZETTE AGAIN FOR ANOTHER FRIDAY, I THINK THIS COUNCIL WOULD HAVE REGARDED ME AS BEING MORE THAN A TRIFLE INDECISIVE. 1 THINK THE COMMUNITY WOULD HAVE REGARDED ME AS MORE THAN A TRIFLE INDECISIVE. I THINK A LOT OF MEMBERS OF TllE BUSINESS COMMUNITY WOULD HAVE REGARDED IT AS INDECISIVE. BECAUSE I’VE HEARD MORE AND MORE PEOPLE SAYING: WE WANT TO KNOW WHERE THIS IS GOING, WE WANT A DECISION, WE DON’T JUST WANT TO GO ON HANGING ABOUT.

MR MARTIN BARROW: MR PRESIDENT, GOVERNOR, CAN WE TAKE OURSELVES AWAY FROM CONSTITUTIONAL DEVELOPMENT FOR A MOMENT. AS YOU’VE SAID EARLIER, THERE ARE MANY OTHER MATTERS WHICH WE NEED TO GET ON WITH OUTSIDE CONSTITUTIONAL DEVELOPMENT, FOR EXAMPLE, ON OCTOBER' 7TH YOU EMPHASISED YOUR DETERMINATION THAT HONG KONG SHOULD BE THE MOST BUSINESS-FRIENDLY PLACE IN ASIA. COULD YOU ADVISE WHAT SPECIFIC ACTION IS BEING TAKEN TO ENSURE THAT THAT REMAINS THE CASE?

GOVERNOR: 1 MADE A PARTICULARLY MOVING SPEECH TO THE INSTITUTE OF DIRECTORS YESTERDAY, IN WHICH I TRIED TO ANSWER THAT QUESTION AS WELL AS I COULD. THE HONOURABLE MEMBER WHO IS HIMSELF A DISTINGUISHED MEMBER OF THE BUSINESS COMMUNITY AS WELL AS UNDERTAKING MANY PUBLIC SERVICE OBLIGATIONS, WILL I THINK BE AWARE OF THE DECISIONS TAKEN IN THE FINANCIAL SECRETARY’S BUDGET WHICH CONFIRM THE THRUST OF GOVERNMENT POLICY IN ORDER TO ENSURE THAT THIS COMMUNITY CONTINUES TO GROW AND EXPAND ON THE BASIS OF UNFETTERED PRIVATE ENTERPRISE. I THINK THAT GUARANTEEING SOUND MACRO-ECONOMIC POLICY WITH LOW TAX, WITH PUBLIC SPENDING WHICH GROWS IN LINE WITH THE ECONOMY RATHER THAN AHEAD OF GROWTH IN THE ECONOMY, WITH RESERVES WHICH WILL BE GREATER IN 1997 EVEN THAN WE WERE PREDICTING LAST YEAR, I THINK DECISIONS WHICH CONFIRM THOSE ELEMENTS OF MACRO-ECONOMIC POLICY WILL ENSURE THAT WE REMAIN THE MOST BUSINESS-FRIENDLY COMMUNITY OR ONE OF THE MOST BUSI NESS-FRIENDLY COMMUNITIES IN THE AREA.

/BUT THERE .......

15

FRIDAY, MARCH 12, 1993

BUT THERE WERE OTHER DECISIONS WHICH I THOUGHT, IF I MAY SAY SO, WERE ALSO VERY HELPFUL. FIRST OF ALL, I THOUGHT THE ADDITIONAL AND WELL JUSTIFIED ASSISTANCE THAT WE’RE PROPOSING TO GIVE TO THE TOURIST INDUSTRY. WHY DO I MENTION THE TOURIST INDUSTRY? - A FORMER BRITISH PRIME MINISTER ONCE IN A SPEECH SAID, ’’WHY DO I SPEAK ABOUT THE NAVY TODAY?” AND A HECKLER SHOUTED OUT, "BECAUSE YOU’RE IN CHATHAM". - WHY DO I SPEAK OF THE TOURIST INDUSTRY? NOT ONLY BECAUSE OF THE HONOURABLE MEMBER’S SERVICE TO THE TOURIST INDUSTRY BUT ALSO BECAUSE THE HONOURABLE MEMBER KNOWS THAT THERE ARE SIX MILLION TOURISTS - SORRY, I THINK IT’S MORE THAN THAT - SEVEN MILLION TOURISTS COMING TO HONG KONG EVERY YEAR, IT’S THE MOST POPULAR TOURIST CENTRE IN ASIA AND WE WANT TO KEEP IT THAT WAY.

SECONDLY, I THINK THE DECISIONS THAT WE’VE TAKEN ABOUT THE EXTENSION TO THE CONVENTION AND EXHIBITION CENTRE CONFIRMING SUCCESS, UNDERLINING THE ENORMOUSLY VALUABLE JOB WHICH THE CENTRE HAS DONE, WHICH THE TDC HAS DONE, I THINK THAT IS ANOTHER EXAMPLE. I HOPE THAT IN DUE COURSE THE FINANCIAL SECRETARY WILL BE ABLE TO MAKE AN ANNOUNCEMENT ABOUT FURTHER SUPPORT FOR INDUSTRY AND NOT JUST FOR THE PROMOTION OF OUR EXPORTS. I THINK THAT THE DECISIONS THAT WE’VE ANNOUNCED ABOUT THE MONETARY AUTHORITY AND ABOUT BROADENING THE MANAGEMENT OF THE EXCHANGE FUND ARE ALL HELPFUL TO BUSINESS AND INDUSTRY. WHAT WE’VE DONE ABOUT EDUCATION AND RE-TRAINING. I COULD GO ON ALMOST AS LONG AS I DID TO THE INSTITUTE OF DIRECTORS TO WHOM I’M AFRAID I DIDN’T MENTION TOURISM - BUT NOT ONLY BECAUSE THE HONOURABLE WASN’T THERE.

PRESIDENT: IN ACCORDANCE WITH THE STANDING ORDERS I NOW

ADJOURN THE SITTING UNTIL WEDNESDAY, MARCH 24, 1993.

ELECTORAL PROVISIONS (MISCELLANEOUS AMENDMENTS) BILL 1993

******

THE ELECTORAL PROVISIONS (MISCELLANEOUS AMENDMENTS) BILL 1993 IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY).

THE ABOVE-MENTIONED BILL SETS OUT IN LEGISLATIVE FORM THE REMAINING PROPOSALS IN THE CONSTITUTIONAL PACKAGE IN THE GOVERNOR’S ADDRESS TO THE LEGISLATIVE COUNCIL ON OCTOBER 7, LAST YEAR.

IT PROVIDES FOR THE LOWERING OF THE VOTING AGE FROM 21 TO 18, THE INTRODUCTION OF A "SINGLE-SEAT, SINGLE-VOTE” SYSTEM FOR GEOGRAPHICAL CONSTITUENCY ELECTIONS, THE ABOLITION OF THE APPOINTED MEMBERSHIP OF THE DISTRICT BOARDS (DBS) AND THE MUNICIPAL COUNCILS (WITH AN INCREASE IN THEIR DIRECTLY ELECTED SEATS), THE BROADENING OF THE FRANCHISE OF SOME EXISTING FUNCTIONAL CONSTITUENCIES (FCS), AND THE ESTABLISHMENT OF NINE NEW FUNCTIONAL CONSTITUENCIES ENCOMPASSING HONG KONG’S WORKFORCE AND AN ELECTION COMMITTEE COMPRISING DISTRICT BOARD MEMBERS TO RETURN 10 MEMBERS OF THE LEGISLATIVE COUNCIL IN 1995.

/A GOVERNMENT .......

FRIDAY, MARCH 12, 1993

16

A GOVERNMENT SPOKESMAN SAID UNDER THE BILL, CORPORATE VOTERS IN THE EXISTING FUNCTIONAL CONSTITUENCY SYSTEM WOULD BE REPLACED BY INDIVIDUALS (E.G. COMPANY DIRECTORS OR MEMBERS OF THE EXECUTIVE COMMITTEES) WHO CONTROLLED THE MANAGEMENT OF THE CORPORATIONS OR ORGANISATIONS CONCERNED IN THE RELEVANT CONSTITUENCIES.

’’THIS WILL BROADEN THE FRANCHISE FOR THE COMMERCIAL, INDUSTRIAL, FINANCE AND FINANCIAL SERVICES, REAL ESTATE AND CONSTRUCTION, TOURISM, SOCIAL SERVICES, AND LABOUR FUNCTIONAL CONSTITUENCIES,” HE SAID.

THE FRANCHISE FOR THE SOCIAL SERVICES, TEACHING, HEALTH CARE, AND ARCHITECTURAL, SURVEYING AND PLANNING FUNCTIONAL CONSTITUENCIES WILL ALSO BE BROADENED TO ENFRANCHISE MEMBERS OF THE HONG KONG SOCIAL WELFARE PERSONNEL REGISTRATION COUNCIL, REGISTERED SCHOOL MANAGERS, MEMBERS OF THE GOVERNING BODIES OF TERTIARY EDUCATION INSTITUTIONS, GROUPS OF HEALTH CARE PERSONNEL EMPLOYED BY THE GOVERNMENT, HOSPITAL AUTHORITY AND REGISTERED HOSPITALS AND LANDSCAPE ARCHITECTS.

THE TEACHING FUNCTIONAL CONSTITUENCY WILL BE RENAMED THE EDUCATION FUNCTIONAL CONSTITUENCY TO REFLECT THE WIDER INTERESTS CONCERNED.

THE NINE NEW FUNCTIONAL CONSTITUENCIES PROPOSED ARE: PRIMARY PRODUCTION, POWER AND CONSTRUCTION; TEXTILES AND GARMENTS; MANUFACTURING; IMPORT AND EXPORT; WHOLESALE AND RETAIL; HOTELS AND CATERING; TRANSPORT AND COMMUNICATI ON; FINANCING, INSURANCE, REAL ESTATE AND BUSINESS SERVICES; AND COMMUNITY, SOCIAL AND PERSONAL SERVICES.

TOGETHER WITH THE EXPANDED FUNCTIONAL CONSTITUENCIES, THESE NEW FUNCTIONAL CONSTITUENCIES WILL GIVE EVERY ELIGIBLE VOTER IN OUR WORKING POPULATION OF 2.7 MILLION THE OPPORTUN1TY TO ELECT A MEMBER OF THE LEGISLATIVE COUNCIL TO REPRESENT HIM OR HER AT THE WORK PLACE.

THE SPOKESMAN SAID MEMBERSHIP OF THE ELECTION COMMITTEE WOULD BE DRAWN FROM THE DISTRICT BOARDS. DB MEMBERS WHO FORM THE ELECTION COMMITTEE WILL, AS WITH OTHER WORKING PERSONS, HAVE AT MOST TWO VOTES IN THE LEGISLATIVE COUNCIL ELECTIONS: ONE IN THE GEOGRAPHICAL CONSTITUENCY ELECTION, AND ANOTHER IN EITHER THE FUNCTIONAL CONSTITUENCY OR THE ELECTION COMMITTEE ELECTION.

------0 ------

PLAN FOR AIRPORT RAILWAY IMMERSED TUBE PUBLISHED *****

THE GOVERNMENT TODAY (FRIDAY) GAZETTED THE FORESHORE AND SEABED AREAS THAT WILL BE AFFECTED BY THE CONTRUCTION OF THE IMMERSED TUBE TUNNEL FOR THE AIRPORT RAILWAY.

A SPOKESMAN FOR THE NEW AIRPORT PROJECTS (’O-ORD I NAT I ON OFFICE (NAPCO) SAID THE NOT IF1 CAT I ()N, UNDER THE FORESHORE AND SEABED ORDINANCE, WAS A STATUTORY STEP WHICH HAD TO BE TAKEN TO PREPARE FOR CONSTRUCTION OF THE TUNNEL UNDER THE HARBOUR.

/THE GAZETTING .......

17

FRIDAY, MARCH 12, 1993

’’THE GAZETTING OF THIS NOTICE IS THEREFORE PART OF OUR STEP-BY-STEP APPROACH TO THE AIRPORT CORE PROGRAMME. IT DEMONSTRATES THAT THE GOVERNMENT'S COMMITMENT TO THE WHOLE OF THE AIRPORT RAILWAY PROJECT IS UNDIMINTSHED,” THE SPOKESMAN ADDED.

THE PURPOSE OF PUBLISHING THE GAZETTE NOTICE IS TO ESTABLISH WHAT LEGITIMATE RIGHTS OR INTERESTS MIGHT BE AFFECTED BY THE WORKS, WITH CLAIMS TO BE CONSIDERED AND DEALT WITH IN DUE COURSE.

THE AREA INVOLVED COVERS ABOUT 16.7 HECTARES OF FORESHORE AND SEABED ALONG THE ALIGNMENT OF THE TUNNEL.

ANY PERSON WHO CONSIDERS THAT HE HAS AN INTEREST, RIGHT OR EASEMENT IN OR OVER THE FORESHORE OR SEABED INVOLVED MAY SUBMIT A WRITTEN OBJECTION TO THE DIRECTOR OF BUILDINGS AND LANDS WITHIN TWO MONTHS, THAT IS ON OR BEFORE MAY 12, 1993.

THE SUBMISSION SHOULD DESCRIBE THE INTEREST, RIGHT OR EASEMENT OF THE OBJECTOR AND THE MANNER IN WHICH IT IS CLAIMED THAT HE WILL BE AFFECTED.

THE NOTICE (IN ENGLISH AND CHINESE) TOGETHER WITH ITS RELATED PLAN NO. KM4942 WILL BE DISPLAYED ON NOTICE BOARDS NEAR THE SITE.

THE PLAN CAN ALSO BE INSPECTED AT THE BUILDINGS AND LANDS DEPARTMENT SURVEY AND MAPPING OFFICE, 14TH FLOOR, MURRAY BUILDING, GARDEN ROAD, HONG KONG (WHERE COPIES CAN BE PURCHASED ON ORDER); THE CENTRAL AND WESTERN DISTRICT OFFICE, GROUND FLOOR, HARBOUR BUILDING, 38 PIER ROAD, CENTRAL; AND THE YAU TSIM DISTRICT OFFICE, GROUND FLOOR, MIDDLE ROAD CARPARK BUILDING, 15 MIDDLE ROAD, KOWLOON.

HK - A KEY REGIONAL CENTRE

* * * * *

OVERSEAS COMPANIES HAVE SET UP 1,345 REGIONAL OPERATIONS IN HONG KONG, A RECENT SURVEY CONDUCTED BY THE INDUSTRY DEPARTMENT REVEALS.

THE 1992 SURVEY OF REGIONAL REPRESENTATION BY OVERSEAS COMPANIES IN HONG KONG IDENTIFIED 588 REGIONAL HEADQUARTERS AND 757 REGIONAL OFFICES AS AT JUNE 1 LAST YEAR.

THE DIRECTOR-GENERAL OF INDUSTRY, MR T H RARMA, SAID THIS WAS THE THIRD IN A SERIES OF SURVEYS BY THE INDUSTRY DEPARTMENT TO STUDY REGIONAL REPRESENTATION BY OVERSEAS COMPANIES IN HONG KONG.

IN THE LAST SURVEY CONDUCTED IN 1991, A TOTAL OF 602 REGIONAL HEADQUARTERS AND 278 REGIONAL OFFICES OF OVERSEAS COMPANIES WERE IDENTIFIED IN HONG KONG.

MR BARMA EMPHASISED, HOWEVER, THAT CAUTION SHOULD BE EXERCISED WHEN YEAR-ON-YEAR COMPARISON WAS MADE ON THE BASIS OF THE RESULTS OF THESE SURVEYS.

/’’SOME RESPONDENTS.......

FRIDAY, MARCH 12, 1993

18

"SOME RESPONDENTS IN THE 1992 SURVEY WERE NOT COVERED BY THE 1990 OR 1991 SURVEYS, AND SOME COMPANIES COVERED BY PREVIOUS SURVEYS DID NOT RESPOND TO THE 1992 SURVEY," HE SAID.

MR BARMA SAID HONG KONG HAD LONG BEEN AN IMPORTANT REGIONAL CENTRE IN THE ASIA-PACIFIC REGION.

"ITS CENTRAL LOCATION AND EXCELLENT EXTERNAL COMMUNICATION LINKS HAVE MADE HONG KONG ATTRACTIVE TO OVERSEAS COMPANIES NOT ONLY FOR BUSINESS, BUT ALSO AS A CONVENIENT BASE FROM WHICH TO SUPERVISE 'THER OFFICES TN NEIGHBOURING COUNTRIES."

"WITH THE SIGNIFICANT ECONOMIC DEVELOPMENT IN THE ASIA-PACIFIC REGION TN RECENT YEARS, HONG KONG’S REGIONAL ROLE HAS BECOME INCREASINGLY IMPORTANT," HE SAID.

MR BARMA SAID THE SURVEY REVEALED THAT BETWEEN 1980 AND 1984, \N AVERAGE OF 21 NEW REGIONAL HEADQUARTERS WERE SET UP EACH YEAR.

"FROM 1985 ONWARDS, THIS NUMBER INCREASED TO AN AVERAGE OF 45.

IN THE FIRST FIVE MONTHS OF 1992, A TOTAL OF 24 NEW REGIONAL ADQUARTERS WERE ESTABLISHED, AND A FURTHER 15 COMPANIES SAID THEY ERE PLANNING TO DO SO SOON," HE SAID.

THE UNITED STATES HAD THE LARGEST NUMBER OF REGIONAL II ADQUARTERS IN HONG KONG, WITH 206 COMPANIES, FOLLOWED BY JAPAN (74 < >MPANIES) AND THE UNITED KINGDOM (73 COMPANIES).

THE MAJOR BUSINESS OF THE REGIONAL HEADQUARTERS INCLUDED WHOLESALE, RETAIL, AND IMPORT AND EXPORT ACTIVITIES, FOLLOWED BY REAL ESTATE AND BUSINESS SERVICES, MANUFACTURING AND FINANCE AND BANKING.

AS REGARDS REGIONAL OFFICES, THE SURVEY SHOWED THAT JAPAN HAD THE LARGEST NUMBER, WITH A TOTAL OF 193. THE UNITED STATES (178 COMPANIES) WAS NEXT, FOLLOWED BY THE UNITED KINGDOM (79 COMPANIES), SWITZERLAND (39 COMPANIES) AND GERMANY (35 COMPANIES).

THE DISTRIBUTIVE TRADE SECTOR ACCOUNTED FOR THE MAJORITY OF THE BUSINESS OF THE REGIONAL OFFICES IN HONG KONG. OTHER IMPORTANT ECONOMIC ACTIVITIES FOR REGIONAL OFFICES INCLUDED REAL ESTATE AND OTHER BUSINESS SERVICES, FINANCE AND BANKING AND MANUFACTURING.

THIRTY OF THE RESPONDING COMPANIES INDICATED THAT THEY HAD PLANS TO SET UP REGIONAL OFFICES IN HONG KONG.

WHEN ASKED TO GIVE VIEWS ON HONG KONG AS A REGIONAL HEADQUARTERS OR REGIONAL OFFICE, 96 PER CENT OF THE RESPONDENTS CONSIDERED HONG KONG’S BANKING AND FINANCIAL FACILITIES, THE MOST IMPORTANT FACTOR AFFECTING HONG KONG’S ROLE AS A REGIONAL CENTRE, TO BE FAVOURABLE.

HONG KONG’S INFRASTRUCTURE WAS CONSIDERED FAVOURABLE BY 90 PER CENT OF THE COMPANIES. OTHER FACTORS WITH A HIGH FAVOURABLE RATING INCLUDED HONG KONG GOVERNMENT’S ECONOMIC POLICY (84 PER CENT) AND HONG KONG’S REGIONAL LOCATION (82 PER CENT).

/MORE THAN ........

19

FRIDAY, MARCH 12, 1993

MORE THAN 80 PER CENT OP THE RESPONDENTS CONSIDERED THAT, COMPARED WITH THE YEAR BEFORE, THE OVERALL FAVOURABILITY OF HONG KONG AS A REGIONAL HEADQUARTERS OR REGIONAL OFFICE HAD IMPROVED OR HAD REMAINED SATISFACTORY.

COPIES OF THE SURVEY REPORT, IN BOTH CHINESE AND ENGLISH, INCLUDING LISTS OF REGIONAL HEADQUARTERS AND REGIONAL OFFICES, ARE AVAILABLE FREE OF CHARGE FROM THE DATA AND SERVICES DIVISION OF THE INDUSTRY DEPARTMENT AT ROOM 1419, OCEAN CENTRE.

--------0------------

PILOTAGE REVIEW CONSULTANCY TO RECOMMEND PORT CHARGES * * * * *

THE MARINE DEPARTMENT HAS COMMISSIONED A CONSULTANCY TO REVIEW THE PRESENT PILOTAGE SYSTEM IN HONG KONG AND TO MAKE RECOMMENDATIONS FOR ANY CHARGES NECESSARY TO MEET THE NEEDS OF THE PORT IN THE MOST EFFICIENT AND COST-EFFECTIVE MANNER FROM NEXT YEAR TO 2011.

THE DEPUTY DIRECTOR OF MARINE, MR ALLAN PYRKE, ANNOUNCED THIS TODAY (FRIDAY) WHEN HE SIGNED THE CONTRACT FOR THE $1.95 MILLION CONSULTANCY AT THE MARINE DEPARTMENT HEADQUARTERS IN HARBOUR BUILDING, CENTRAL.

SIGNING THE CONTRACT FOR THE ROTTERDAM PILOTS AND MARINE ANALYTICS FROM THE NETHERLANDS WAS MR DAVID A GOWING.

MR PYRKE SAID: "THE NUMBER OF VESSELS USING THE PORT AND REQUIRING PILOTAGE IS RAPIDLY INCREASING. THIS, TOGETHER WITH THE PLANNED WESTWARD MOVEMENT OF THE FOCUS OF PORT ACTIVITY ENVISAGED BY THE PORT AND AIRPORT DEVELOPMENT STRATEGY (PADS) AND THE URBAN DEMANDS FOR RECLAIMED LAND, HAS LED TO 'HIE NEED TO REASSESS THE PATTERN AND CONTROL OF SHIPPING MOVEMENTS.

"THIS CHANGES NECESSITATE A REVIEW OF THE CURRENT PILOTAGE SERVICES WHICH ARE A VITAL LINK IN ENSURING THE CONTINUING SAFETY OF SHIPS IN THE PORT."

PILOTAGE IN HONG KONG IS COMPULSORY FOR OCEAN-GOING VESSELS OF 5,000 GROSS TONS OR OVER, ALONG WITH CERTAIN OTHER CATEGORIES OF VESSELS.

PILOTS ARE SELF-EMPLOYED AND ARE GOVERNED BY APPROPRIATE LEGISLATIONS UNDER THE PILOTAGE AUTHOR ITY WHO IS THE DIRECTOR OF MARINE.

MR PYRKE SAID THE SCOPE OF THE CONSULTANCY WOULD INCLUDE THE FOLLOWING:

* GEOGRAPHICAL EXTENT OF PILOTAGE SERVICES;

* LOCATION OF PILOT BOARDING STATIONS AND METHODS OF BOARDING;

* THE SIZE AND TYPE OF VESSEL FOR WHICH PILOTS SERVICES SHOULD BE COMPULSORY;

I* THE NEED .......

FRIDAY, MARCH 12, 1993

20

» THE NEED AND REQUIREMENTS FOR THE GRANT OF PILOTAGE EXEMPTIONS;

* THE NUMBER AND CLASSES OF PILOTS REQUIRED;

INSTITUTIONAL ARRANGEMENTS FOR THE PILOTAGE SERVICE, INCLUDING WITHOUT LIMITATION, THE USE OF A CONTRACTUAL ARRANGEMENT BETWEEN THE GOVERNMENT AND THE PILOTS ASSOCIATION OR AN APPROPRIATE LEGISLATION;

METHODS TO SECURE THE ADEQUACY Ol* THE PILOTAGE SERVICE;

* BASIS AND LEVEL OF PILOTAGE DUES AND THE CRITERIA FOR REVISING THIS LEVEL;

PILOT ROSTER OR SHIFT SYSTEM AND ANY ASSOCIATED

INFRASTRUCTURAL ASSETS;

* RECRUITMENT, SELECTION, TRAINING AND EXAMINATION OF PILOTS AND STRUCTURE OF PILOTAGE GRADES;

EMPLOYMENT STATUS OF PILOTS;

» PRESENT PILOTAGE ORDINANCE AND ANY CHANGES NECESSARY TO REFLECT INTERNATIONAL PRACTICE;

» PILOT BOATS, THEIR PROVISION AND OPERATIONAL NEEDS AND CONTROL;

* HOURS OF WORK OF PILOTS, FATIGUE AND ANY MITIGATING

MEASURES, AND

OPERATIONAL RELATIONSHIP AND COMMUNICATION BETWEEN PILOTS, VESSEL TRAFFIC CENTRE AND THE FUTURE HYDROGRAPHIC OFFICE.

MR PYRKE SAID: "A REVIEW OF A PILOTAGE ORGANISATION NEEDS TO ENCOMPASS ALL KINDS OF EXPERTISE NECESSARY TO UNDERSTAND THE DIFFERENT ASPECTS OF A PILOTAGE ORGANISATION.

’’THE STUDY TEAM CONSISTS OF PERSONS WHO HAVE HAD EITHER A DISTINGUISHED SERVICE RECORD AS AN EXPERT PILOT AND/OR AS AN EXECUTIVE OF THE PILOTAGE SERVICE, OR HAVE BEEN WORKING IN THE FIELD OF MARITIME SAFETY FOR MORE THAN 25 YEARS.

’’THE HONG KONG PILOTS ASSOCIATION WILL WORK CLOSELY WITH THE CONSULTANTS WHILE THE STUDY IS IN PROGRESS.

"DURING THE STUDY PHASE THE CONSULTANTS WILL SEEK THE VIEWS OF USERS OF THE PILOTAGE SERVICES SUCH AS THE HONG KONG SHIPOWNERS ASSOCIATION, HONG KONG SHIPPING LINERS ASSOCIATION, TERMINAL OPERATORS AND EVEN INDIVIDUAL CAPTAINS OF VISITING SHIPS."

THE CONSULTANCY STUDY IS EXPECTED TO RE COMPLETED IN SEPTEMBER THIS YEAR.

0 --------

/21 ........

FRIDAY, MARCH 12, 1993

21

SPORT HELPS MENTALLY HANDICAPPED INTEGRATE INTO SOCIETY *****

PARTICIPATION IN SPORT IS AN IMPORTANT WAY FOR THE MENTALLY HANDICAPPED TO BECOME INTEGRATED INTO THE COMMUNITY, MRS PATTEN TOLD ATHLETES OF THE HONG KONG SPECIAL OLYMPICS TEAM.

THIS WOULD HELP TO BRING DOWN THE BARRIERS OF PREJUDICE, SHE SAID AT THE FLAG-PRESENTATION CEREMONY FOR THE TEAM WHICH TAKES PART IN THE 1993 SPECIAL OLYMPICS WORLD WINTER GAMES IN AUSTRIA.

"WE MUST ALL DO WHAT WE CAN TO HELP THE MENTALLY HANDICAPPED LIVE AS NORMAL LIVES AS POSSIBLE WITHIN THE COMMUNITY," SHE SAID.

THIS IS THE THIRD TIME HONG KONG IS TAKING PART IN SUCH GAMES.

"I UNDERSTAND THAT THE HONG KONG SPECIAL OLYMPIANS, IN PREPARATION FOR THESE GAMES, HAVE BEEN UNDER REGULAR AND VIGOROUS TRAINING OVER THE PAST TWO YEARS. I AM SURE THAT THEY TOO WILL COME BACK WITH MANY MEDALS.

"BUT MEDALS OR NOT, THE EXPERIENCE OF TRAVELLING ABROAD, AND THE FRIENDSHIPS THAT DEVELOP ON THESE OCCASIONS, WILL BENEFIT ALL THE PARTICIPANTS IN MANY DIFFERENT WAYS," SHE SAID.

LAST TIME THE GAMES WERE HELD IN 1989 IN THE USA, WHEN THE HONG KONG ATHLETES WON SEVEN GOLD, SEVEN SILVER AND SIX BRONZE MEDALS.

"WE ARE ALL VERY PROUD OF THEIR ACHIEVEMENTS," SHE SAID.

NOTE TO EDITORS:

A PHOTOGRAPH OF MRS PATTEN AT THE FLAG-PRESENTATION CEREMONY WILL BE BOXED.

-----0------

AIR QUALITY REPORT RELEASED FOR FEBRUARY ♦ » » * *

THE ENVIRONMENTAL PROTECTION DEPARTMENT TODAY (FRIDAY) RELEASED AIR QUALITY INFORMATION FOR FEBRUARY.

\ SPOKESMAN FOR THE DEPARTMENT SAID THE ANNOUNCEMENT SERVED TO INFORM THE PUBLIC OF THE AIR QUALITY LEVELS IN THE TERRITORY AND TO EXPLAIN THE MEASUREMENTS.

THE ANNOUNCEMENT NORMALLY CONTAINS MONITORING RESULTS OBTAINED AT ITS MONG KOK, CENTRAL/WESTERN AND KWAI CHUNG MONITORING STATIONS.

THESE LOCATIONS ARE TYPICAL OF THREE OF THE IMPORTANT LAND USE TYPES FOUND IN THE TERRITORY, NAMELY:

LOCATIONS CLOSE TO ROAD TRAFFIC IN BUILT-UP URBAN DISTRICTS,

* COMBINED COMMERCIAL AND RESIDENTIAL DISTRICTS, AND

* DISTRICTS CLOSE TO INDUSTRIAL AREAS.

/THE REPORTED .......

FRIDAY, MARCH 12, 1993

22

THE REPORTED AIR POLLUTANTS INCLUDE SULPHUR DIOXIDE (SO2), NITROGEN DIOXIDE (NO2), RESPIRABLE SUSPENDED PARTICULATES (RSP) AND TOTAL SUSPENDED PARTICULATES (TSP).

THE GASEOUS POLLUTANTS ARE MONITORED CONTINUOUSLY WHILE PARTICLE SAMPLES ARE COLLECTED FOR 24 HOURS, ONCE EVERY SIX DAYS.

IN FEBRUARY, LEVELS OF ALL THE REPORTED POLLUTANTS WERE BELOW THE 24-HOUR HONG KONG AIR QUALITY OBJECTIVE (AQOI VALUES.

HOWEVER, AT MONG KOK THE LEVEL OF TSP ON FEBRUARY 9 WAS VERY CLOSE TO THE 24-HOUR LIMIT VALUE OF 260 UG PER CUBIC METER.

AVERAGE MONTHLY CONCENTRATIONS OF MOST SPECIES AT ALL THREE SITES (APART FROM NO2 AT MONG KOK) WERE WORSE THAN IN THE SAME MONTH LAST YEAR, WITH PARTICLE LEVELS BEING SIGNIFICANTLY HIGHER.

PARTICLE CONCENTRATIONS FOLLOWED SIMILAR TRENDS AT ALL THREE SITES BUT LEVELS WERE HIGHER AT MONG KOK THAN AT THE OTHER STATIONS.

THIS IS BECAUSE MONG KOK IS AT STREET LEVEL, AND THEREFORE CLOSE TO VEHICLE EXHAUSTS, AND ALSO BECAUSE THERE ARE A CONSIDERABLE NUMBER OF CONSTRUCTION ACTIVITIES NEARBY.

THE PEAK OBSERVED AT ALL THREE SITES ON FEBRUARY 9 CANNOT YET BE EXPLAINED AND REQUIRES FURTHER ANALYSIS.

CONCENTRATIONS OF THE GASEOUS SPECIES, SO2 AND NO2, WERE SIMILAR AT ALL THREE STATIONS AND FOLLOWED SIMILAR TRENDS.

THIS INDICATES THAT THE POLLUTANT LEVELS WERE INFLUENCED BY GENERAL METEOROLOGICAL CONDITIONS AND WERE NOT DOMINATED BY LOCAL SOURCES. FURTHER ANALYSIS OF THESE EVENTS IS ALSO BEING CARRIED OUT.

THE FOUR POLLUTANTS DISCUSSED HAVE DIFFERENT ORIGINS. SO2 MOSTLY ORIGINATES FROM THE COMBUSTION OF SULPHUR CONTAINING FOSSIL FUELS.

NO2 IS FORMED EITHER DIRECTLY DURING COMBUSTION OR, BY THE ATMOSPHERIC OXIDATION OF NITRIC OXIDE (NO) WHICH IS ALSO PRODUCED DURING COMBUSTION. VEHICLE EXHAUST IS A MAJOR SOURCE OF NO AND NO2.

VEHICLE EXHAUST IS ALSO A MAJOR SOURCE OF AIRBORNE PARTICLES; OTHER SOURCES INCLUDE INDUSTRY, FURNACES AND BOILERS, CONSTRUCTION ACTIVITIES, THE SEA AND SOIL DUST.

THE DEPARTMENT IS MONITORING AIR QUALITY CONTINUOUSLY AT 11 STATIONS, INCLUDING THE THREE MENTIONED ABOVE. SHORT-TERM MEASUREMENT CAMPAIGNS ARE ALSO UNDERTAKEN AS AND WHERE THE NEED ARISES.

NOTE TO EDITORS:

FURTHER ENQUIRY CAN BE DIRECTED TO PRINCIPAL ENVIRONMENTAL PROTECTION OFFICER, MR R LEUNG ON TEL 594 6401.

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/23 ........

FRIDAY, MARCH 12, 1993

23

TECHNICAL TEACHERS WANTED

*****

YOUNG MEN AND WOMEN WITH INDUSTRIAL QUALIFICATION AND EXPERIENCE ARE INVITED TO ENROL IN A ONE-YEAR, FULL-TIME TECHNICAL TEACHERS’ COURSE STARTING SEPTEMBER AT THE HONG KONG TECHNICAL TEACHERS’ COLLEGE.

AN EDUCATION DEPARTMENT SPOKESMAN SAID THE COURSE WAS INTENDED FOR MATURE STUDENTS INTERESTED IN TAKING UP TEACHING AS A PROFESSION AND WHO HAVE ACQUIRED INDUSTRIAL EXPERIENCE IN ELECTRICAL-ELECTRONIC ENGINEERING OR MECHANICAL ENGINEERING.

APPLICANTS MUST POSSESS A HIGHER DIPLOMA, HIGHER CERTIFICATE OR DIPLOMA IN ELECTRICAL OR ELECTRONIC ENGINEERING OR MECHANICAL ENGINEERING, AWARDED BY POLYTECHNICS OR TECHNICAL INSTITUTES, OR AN EQUIVALENT QUALIFICATION, THE SPOKESMAN SAID.

HE SAID INDUCEMENT GRANTS RANGING FROM $6,707 TO $10,480 A MONTH WOULD BE GIVEN TO STUDENTS DURING THEIR COURSE OF STUDY, CALCULATED ACCORDING TO THE NUMBER OF YEARS OF RELEVANT POST-QUALIFICATION INDUSTRIAL EXPERIENCE.

APPLICATION FORMS ARE AVAILABLE FROM THE HONG KONG TECHNICAL TEACHERS’ COLLEGE AT 373 QUEEN’S ROAD EAST, WAN CHAT.

COMPLETED FORMS SHOULD BE RETURNED, EITHER IN PERSON OR BY REGISTERED MAIL, TO THE COLLEGE BEFORE APRIL 3.

------0-------

SAFETY DRIVING COMPETITION

*****

IF YOU ARE A DRIVING LICENCE HOLDER AND HAVE NO RECORD OF SERIOUS TRAFFIC ACCIDENT, COME AND JOIN THE FIRST-EVER COMMISSIONER FOR TRANSPORT TROPHY OPEN SAFETY DRIVING COMPETITION NOW.

THE COMPETITION, JOINTLY ORGANISED BY THE TRANSPORT DEPARTMENT AND THE INSTITUTE OF ADVANCED MOTORISTS, IS TO PROMOTE ROAD SAFETY THROUGH SKILLFUL DRIVING.

THE FIRST ROUND OF CONTEST WILL BE HELD ON MARCH 21 (SUNDAY) AT THE KWAI CHUNG SPORTS GROUND. THE FINAL ROUND WILL BE HELD AT THE VICTORIA PARK SPORTS GROUND ON APRIL 25 (SUNDAY).

DURING THE CONTEST, A CUP OF WATER WILL BE FIXED ON THE BONNET. THE ONE WITH LEAST SPILLAGE AND RETURN TO THE FINISHING POINT WITHIN THE SHORTEST TIME WILL WIN.

THOSE INTERESTED MAY JOIN IN THE PRIVATE CAR SECTION OR TAXI SECTION. WINNERS WILL BE AWARDED WITH TROPHIES AND MEDALS, COMPLIMENTARY HONG KONG/TOKYO ROUND TRIP AIR TICKETS AND PETROL COUPONS.

APPLICATION FORMS ARE AVAILABLE AT ALL TRANSPORT DEPARTMENT OFFICES OR CALTEX PETROL STATIONS; AND TRANSPORT-RELATED ORGANISATIONS. FOR FURTHER ENQUIRIES, PLEASE CONTACT THE INSTITUTE OF ADVANCED MOTORISTS ON TEL 718 2299.

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/24 ........

FRIDAY, MARCH 12, 1993

24

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,590

REVERSAL OF LAF +560

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -985

CLOSING BALANCE IN THE ACCOUNT 1,165

LAF RATE 2.00 BID/4.00 OFFER TWT 114.1 »-0.1* 12.3.93

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS •HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.21 PCT 14 MONTHS 2405 5.50 102.31 3.51

1 MONTH 2.63 PCT 17 MONTHS 2408 5.50 101.13 3.59

3 MONTHS 2.85 PCT 20 MONTHS 24 1 1 4.375 101.46 3.75

6 MONTHS 3.10 PCT 23 MONTHS 2502 4.625 101.56 3.94

12 MONTHS 3.41 PCT

TOTAL TURNOVER OF BILLS AND BONDS - I1.628MN

CLOSED 12 MARCH 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SATURDAY, MARCH 13, 1993

CONTENTS

GREENLIGHT FOR ASH LAGOON ............................

STI VISITS THE U.S.........................

PLEDGE TO PROMOTE ORGAN DONATIONS ........................

WATCH OUT FOR CONGESTION SIGN ..........................

LAND RESUMPTION FOR OPEN SPACE DEVELOPMENT

GREATER EFFORTS NEEDED TO CONSERVE ENVIRONMENT ...............

LUCKY VEHICLE REGISTRATION MARKS SALE BY AUCTION

TENDERS INVITED FOR MARKET CONSTRUCTION

VOLUNTEER SERVICES NECESSARY TO A CARING COMMUNITY

BUS SERVICE FOR TIN SHUT ESTATE ......................

RENUMBERING OF CROSS HARBOUR EXPRESS BUS ROUTE

THE WEATHER OF FEBRUARY .........................

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

PAGE NO.

12

SATURDAY, MARCH 13, 1993

1

GREENLIGHT FOR ASH LAGOON

*****

THE GOVERNOR IN COUNCIL HAS GIVEN AUTHORISATION FOR THE HONG KONG ELECTRIC COMPANY TO CARRY OUT RECLAMATION AND DREDGING AT PO LO TSUI, LAMMA ISLAND FOR THE CONSTRUCTION OF AN ASH LAGOON, IT WAS GAZETTED YESTERDAY (FRIDAY).

"IN GIVING THE AUTHORISATION, THE EXECUTIVE COUNCIL HAS CAREFULLY CONSIDERED THE OBJECTIONS RECEIVED EARLIER," A GOVERNMENT SPOKESMAN SAID.

THE ASH LAGOON WILL HAVE A CAPACITY OF ONE MILLION CUBIC METRES FOR THE STORAGE OF PULVERISED FUEL ASH GENERATED FROM THE LAMMA POWER STATION.

THE PROJECT WILL AFFECT ABOUT 27 HECTARES OF FORESHORE AND SEABED, OF WHICH 11.34 HECTARES WILL BE RECLAIMED FOR CONSTRUCTION OF THE ASH LAGOON.

THE SPOKESMAN STRESSED THAT TO ALLAY CONCERNS ABOUT THE PROJECT’S POSSIBLE ADVERSE IMPACT, AN ENVIRONMENTAL IMPACT ASSESSMENT WAS CARRIED OUT AND MEASURES WOULD BE TAKEN SO THAT THE PROJECT WOULD MEET THE LEGISLATIVE REQUIREMENTS UNDER THE WATER POLLUTION CONTROL ORDINANCE AND THE ENVIRONMENTAL POLLUTION CONTROL ORDINANCE.

"THESE MEASURES WILL KEEP THE IMPACT, IF ANY, ON THE NEARBY SURROUNDING WITHIN AN ACCEPTABLE LIMIT," THE SPOKESMAN ADDED.

ANY PERSON WHO CONSIDERS THAT HIS INTEREST, RIGHT OR EASEMENT IN OR OVER THE FORESHORE AND SEABED INVOLVED WILL BE AFFECTED MAY SEND TO THE DIRECTOR OF BUILDINGS AND LANDS A WRITTEN CLAIM FOR COMPENSATION ON OR BEFORE MARCH 11, 1994.

HE SHOULD STATE THE SUM OF MONEY WHICH HE IS WILLING TO ACCEPT AS FULL AND FINAL SETTLEMENT OF HIS CLAIM, AND THE PARTICULARS WHICH SUBSTANTIATE HIS CLAIM.

THE NOTICE, IN BOTH ENGLISH AND CHINESE, AND ITS RELATED PLAN IS POSTED AT THE BUILDINGS AND LANDS DEPARTMENT’S SURVEY AND MAPPING OFFICE, 14TH FLOOR, MURRAY BUILDING, GARDEN ROAD.

COPIES CAN BE PURCHASED AT THE OFFICE AND THE ISLANDS DISTRICT OFFICE, 20TH FLOOR, HARBOUR BUILDING, 38 PIER ROAD, CENTRAL.

--------0-----------

SATURDAY, MARCH 13, 1993

2

STI VISITS THE U.S.

*****

THE SECRETARY FOR TRADE AND INDUSTRY, MR T H CHAU, WILL LEAVE FOR WASHINGTON D C TOMORROW (SUNDAY) NIGHT.

DURING HIS VISIT, HE WILL MEET WITH THE UNITED STATES TRADE REPRESENTATIVE, AMBASSADOR MICKEY KANTOR, THE SECRETARY OF COMMERCE, MR RON BROWN AND OTHER OFFICIALS OF THE U.S. ADMINISTRATION RESPONSIBLE FOR INTERNATIONAL TRADE ISSUES.

"I SHALL EXCHANGE VIEWS WITH THOSE I MEET ON ISSUES OF MUTUAL CONCERN TO HONG KONG AND THE U.S.; FOR EXAMPLE, THE CURRENT STATE OF THE URUGUAY ROUND GATT NEGOTIATIONS,” MR CHAU SAID.

"THE IMPORTANCE TO HONG KONG OF THE UNCONDITIONAL RENEWAL OF CHINA’S MOST-FAVOURED-NATION TARIFF STATUS IN THE U.S. WILL ALSO BE HIGH ON MY AGENDA," MR CHAU ADDED.

ACCORDING TO THE GOVERNMENT’S LATEST ASSESSMENT, CHINA’S LOSS OF MFN STATUS IN THE U.S. CAN COST HONG KONG THREE PERCENTAGE POINTS IN GDP GROWTH AND 70,000 JOBS IN THE YEAR OF INCIDENCE.

CHINA’S MFN STATUS IN THE U.S. EXPIRES EVERY YEAR ON JULY 3 UNLESS RENEWED BY THE PRESIDENT. THE PRESIDENT IS REQUIRED TO NOTIFY CONGRESS OF HIS DECISION BY JUNE 3.

--------0-----------

PLEDGE TO PROMOTE ORGAN DONATIONS

******

THE GOVERNMENT WILL STRENGTHEN PUBLIC EDUCATION TO INCREASE AWARENESS AND DISPEL MISCONCEPTION OF ORGAN DONATIONS, THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, SAID.

'WHILE OUR MEDICAL PROFESSION HAS LONG MASTERED THE TECHNICAL EXPERTISE FOR TRANSPLANT SURGERIES, ONLY 170 KIDNEY AND LIVER TRANSPLANTS HAD BEEN MADE POSSIBLE IN THE PAST THREE YEARS," SHE POINTED OUT.

MRS WONG ATTRIBUTED THIS TO COMMUNITY RESISTANCE TOWARDS ORGAN DONATIONS, ADDING THAT SOME 900 PEOPLE IN HONG KONG WERE WATTING FOR THE GIFT OF LIFE FROM POTENTIAL DONORS EACH YEAR.

"MUCH IS BEING DONE TO BREAK THIS RESISTANCE," SHE. TOLD PARTICIPANTS OF THE SEVENTH CONGRESS OF THE WESTERN PACIFIC ASSOCIATION OF CRITICAL CARE MEDICINE WHICH OPENS IN HONG KONG TODAY (SATURDAY).

"SINCE LAST APRIL, WE HAVE LAUNCHED A TERRITORY-WIDE MULTIMEDIA PUBLICITY CAMPAIGN THROUGH EXHIBITIONS, TELEVISION PROGRAMMES AND WIDENED DISTRIBUTION OF DONOR CARDS.

/•’I HOPE .............

SATURDAY, MARCH 13, 1993

- 3 -

"I HOPE THAT YOUR DISCUSSIONS OVER THE NEXT FEW DAYS WILL HEIGHTEN COMMUNITY AWARENESS OF THE PROBLEM, AND THROW LIGHT ON FURTHER MEASURES WE CAN ADOPT TO OVERCOME COMMUNITY RESISTANCE," SHE ADDED.

MRS WONG ALSO TOLD THE GATHERING THAT HONG KONG’S MEDICAL SECTOR WAS UNDERGOING A DYNAMIC PERIOD OF REFORM AND DEVELOPMENT.

THE HOSPITAL AUTHORITY SPEARHEADS MANAGEMENT REFORMS IN ALL ITS HOSPITALS TO ACHIEVE GREATER EFFECTIVENESS AND EFFICIENCY IN SERVICE DELIVERY.

THE DEPARTMENT OF HEALTH IS ALSO VIGOROUSLY PURSUING IMPROVEMENTS IN PRIMARY HEALTH CARE THROUGH THE CONCEPT OF "SHARED CARE".

"THIS INVOLVES CO-OPERATION WITH NOT JUST HEALTH CARE PROFESSIONALS OR GOVERNMENT, BUT ALSO THE PRIVATE SECTOR, PROFESSIONAL BODIES AND THE INDIVIDUAL," MRS WONG STATED.

"FURTHERMORE, WE ARE ACTIVELY PREPARING FOR THE ESTABLISHMENT OF THE ACADEMY OF MEDICINE TO ENHANCE SPECIALIST TRAINING AND CONTINUING EDUCATION FOR OUR MEDICAL STAFF AS WELL AS TO FOSTER OUR PROFESSIONAL LINKAGE WITH OTHER COUNTRIES," SHE ADDED.

-----0------

WATCH OUT FOR CONGESTION SIGN *****

STARTING FROM MONDAY (MARCH 15) MOTORISTS INTENDING TO TRAVEL FROM TUEN MUN TO KOWLOON VIA TUEN MUN ROAD SHOULD WATCH OUT FOR THE TRAFFIC CONGESTION SIGN ON NEWLY INSTALLED TRAFFIC CONDITION INDICATORS BEFORE ENTERING THE ROAD.

THREE SUCH INDICATORS HAVE BEEN INSTALLED TO GIVE KOWLOON-BOUND MOTORISTS ADVANCE NOTICE OF SERIOUS TRAFFIC CONGESTION ON TUEN MUN ROAD CAUSED BY ACCIDENT OR INCIDENT SUCH AS VEHICLE BREAKDOWN.

A SPOKESMAN FOR THE TRANSPORT DEPARTMENT SAID TODAY (SATURDAY) THE SIGN WOULD ENABLE MOTORISTS TO MAKE DIVERSIONS OR CHANGE ROUTE. TRAFFIC DIVERSION FROM THE SCENE OF AN INCIDENT WILL ALSO REDUCE CONGESTION THERE.

"THIS IS PART OF THE DEPARTMENT’S EFFORTS TO ALLEVIATE TRAFFIC CONGESTION ON TUEN MUN ROAD. THE INSTALLATION OF THE THREE INDICATORS IS A PILOT SCHEME. IF PROVEN EFFECTIVE, MORE INDICATORS WILL BE INSTALLED AT OTHER LOCATIONS ON TUEN MUN ROAD," HE SAID.

THE INDICATORS ARE INSTALLED AT WONG CHU ROAD NEAR YAU 01 ESTATE, TUEN MUN ROAD NEAR CHI LOK FA YUEN, AND SAN HUI.

/"THERE ARE .......

SATURDAY, MARCH 13, 1993

4

THERE ARE THREE GROUPS OF AMBER LIGHTS FOR EACH INDICATOR REPRESENTING DIFFERENT SECTIONS OF TUEN MUN ROAD - NAMELY TUEN MUN TO SIU LAM, SIU LAM TO SHAM TSENG, AND SHAM TSENG TO TSUEN WAN.

A PARTICULAR GROUP OF LIGHTS WILL FLASH ON THE VERTICAL SIGN TO INDICATE THE CONGESTED SECTION. SURVEILLANCE TO TRAFFIC CONDITION WILL BE CARRIED OUT BY THE POLICE WHO WILL ALSO OPERATE THE INDICATORS.

TUEN MUN ROAD IS A MAJOR TRUNK ROAD LINKING TUEN MUN AND TSUEN WAN WITH A DAILY AVERAGE FLOW OF OVER 85,000 VEHICLES IN 1992.

IN THE EVENT OF AN ACCIDENT OR VEHICLE BREAKDOWN, MOTORISTS WILL BE TRAPPED ON THE ROAD AS THEY ARE NOT AWARE OF THE ROAD CONDITION AHEAD.

---------0------------

LAND RESUMPTION FOR OPEN SPACE DEVELOPMENT ♦ ♦ ♦ ♦ t

THE GOVERNMENT WILL RESUME THE LAND IN PAK TSZ LANE AND MAN HING LANE IN CENTRAL FOR THE URBAN COUNCIL TO DEVELOP A PUBLIC OPEN SPACE.

A NOTICE OF THE RESUMPTION OF EIGHT PRIVATE LOTS WITH A TOTAL AREA OF ABOUT 587.4 SQUARE METRES WAS GAZETTED YESTERDAY (FRIDAY).

THE LAND TO BE RESUMED HAS BEEN ZONED ’’OPEN SPACE” ON THE DRAFT SAI YING PUN AND SHEUNG WAN OUTLINE ZONING PLAN.

THE OPEN SPACE WILL HAVE A SITTING-OUT AREA, AND CONSTRUCTION IS SCHEDULED TO START IN EARLY 1994. UPON COMPLETION, THE LIVING ENVIRONMENT OF THE AREA WILL BE IMPROVED.

THE LOTS TO BE RESUMED ARE OCCUPIED BY SEVEN DILAPIDATED THREE-STOREY, POST-WAR BUILDINGS AND A SINGLE-STOREY TEMPORARY STRUCTURE AT 3, 4, 5 AND 6 OF PAK TSZ LANE AND 2, 4, 5 AND 6 OF MAN HING LANE.

THE LAND WILL BE REVERTED TO THE GOVERNMENT THREE MONTHS AFTER THE RESUMPTION NOTICE.

A PLAN SHOWING THE EXTENT OF THE AREA OF RESUMPTION IS AVAILABLE FOR INSPECTION AT THE CENTRAL AND WESTERN DISTRICT OFFICE, PUBLIC ENQUIRY SERVICE CENTRE, GROUND FLOOR, HARBOUR BUILDING, 38 PIER ROAD, CENTRAL.

--------0 -

/5 ........

SATURDAY, MARCH 13, 1993

5

GREATER

EFFORTS NEEDED TO CONSERVE ENVIRONMENT ******

LEGISLATIVE COUNCILLOR, MR PETER WONG HONG-YUEN, TODAY (SATURDAY) CALLED UPON THE COMMUNITY TO MAKE GREATER EFFORTS IN CONSERVING THE ENVIRONMENT.

SPEAKING AT THE LAUNCHING OF THE 1993 COMMUNITY TREE PLANTING SCHEME, MR WONG SAID EFFORTS SHOULD BE PUT IN AREAS SUCH AS GREENING THE ENVIRONMENT, MAINTAINING THE BIODIVERSITY OF THE COUNTRYSIDE, SLOWING DOWN GLOBAL WARMING AND ADJUSTING THE EXPLOITATION OF THE NATURAL RESOURCES TO A SUSTAINABLE LEVEL.

MR WONG SAID COUNTRY PARKS WERE INVALUABLE NATURAL HERITAGE WHICH PROVIDED LOCAL PEOPLE WITH EDUCATIONAL AND RECREATIONAL OPPORTUNITIES.

’’THE PARKS ARE ALSO GOOD HABITATS FOR THE CONSERVATION OF ANIMALS AND PLANTS, MANY OF WHICH ARE BEAUTIFUL, USEFUL AND ENDEMIC TO HONG KONG AND SOUTH CHINA.

"ABOVE ALL, CONSERVATION OF THE COUNTRYSIDE HELPS TO REDUCE POLLUTION WHICH IS A MAJOR ENVIRONMENTAL PROBLEM FOR HONG KONG."

MR WONG URGED EVERYONE TO TAKE MEASURES TO UNFAVOURABLE IMPACTS AND INFRINGEMENT ON THE ENVIRONMENT.

MINIMISE

"ALSO WE HAVE TO TAKE ENHANCEMENT MEASURES TO ENSURE ITS SUSTAINABILITY AND TO MAINTAIN ITS BIODIVERSITY," HE SAID.

TURNING TO TREE PLANTING - A CRUCIAL ASPECT IN ENVIRONMENTAL CONSERVATION, MR WONG STRESSED THAT IT SHOULD REMAIN THE LONG-TERM ENDEAVOUR FOR THE BENEFITS OF EVERYONE AND FUTURE GENERATIONS.

"BUT JUST PLANTING TREES IS NOT ENOUGH. THEY HAVE TO BE PROTECTED AND CARED FOR AS WELL," HE SAID.

"EVERYONE, IN PARTICULAR THE COUNTRY PARK USERS, MUST HELP TO PROTECT OUR TREES, ESPECIALLY AGAINST THEIR GREATEST ENEMY - FIRE."

HE BELIEVED THAT THROUGH ACTIVE PART1CIPATION, A SENSE OF RESPECT FOR TREES AND HENCE A SENSE OF RESPONSIBILITY FOR THE NATURAL ENVIRONMENT COULD BE CULTIVATED IN THE COMMUNITY.

ALSO SPEAKING AT THE CEREMONY, THE DIRECTOR OF AGRICULTURE AND FISHERIES, DR LAWRENCE LEE, SHARED THE VIEW THAT TREES, AN INVALUABLE RESOURCES IN HONG KONG, WERE A SYMBOL OF NATURE CONSERVATION.

"IT HAS BEEN THE LONG-STANDING PRACTICE OF THE AGRICULTURE AND FISHERIES DEPARTMENT TO PROMOTE PUBLIC AWARENESS OF NATURE CONSERVATION THROUGH THE PLANTING OF TREES," HE SAID.

DR LEE NOTED THAT SINCE THE START OF THE COMMUNITY TREE PLANTING SCHEME IN 1957, IT HAD BEEN GAINING MORE SUPPORT FROM THE COMMUNITY.

/LAST YEAR, ........

SATURDAY, MARCH 13, 1993

- 6 -

LAST YEAR, MORE THAN 23,000 PARTICIPANTS TOOK PART IN THE SCHEME AND PLANTED SOME 32,000 TREES.

DR LEE CALLED UPON ALL MEMBERS OF THE COMMUNITY, ESPECIALLY THE YOUNGER GENERATION, TO COME FORWARD AND PLANT TREES ON SUNDAYS AND PUBLIC HOLIDAYS DURING THE PERIOD BETWEEN MARCH 14 AND APRIL 25.

SIX PLANTING SITES HAVE BEEN SELECTED IN COUNTRY PARKS IN TAI MO SHAN, HOK TAU, PAK TAM CHUNG, QUARRY BAY, SHING MUN AND NGONG PING.

COUNTRY PARKS STAFF WILL BE ON DUTY DURING THE PERIOD TO PROVIDE SEEDLINGS, TOOLS AND TECHNICAL ADVICE. I i

"ARRANGEMENTS HAVE ALSO BEEN MADE FOR STUDENTS AND COMMUNITY GROUPS TO TAKE PART IN THE PLANTING PROGRAMME. INTERESTED SCHOOLS AND ORGANISATIONS ARE WELCOME TO CONTACT THE DEPARTMENT’S CONSERVATION EDUCATION UNIT ON 733 2121," DR LEE SAID.

HE ALSO THANKED COMMUNITY ORGANISATIONS, INCLUDING THE LIONS CLUBS INTERNATIONAL DISTRICT 303 AND THE NEWLY FORMED FRIENDS OF THE COUNTRY PARKS, FOR THEIR SUPPORT IN CO-ORGANISI NG COUNTRYSIDE CONSERVATION PROJECTS.

-----0------

LUCKY VEHICLE REGISTRATION MARKS SALE BY AUCTION

*****

FIFTY VEHICLE REGISTRATION MARKS WERE PUT UP FOR AUCTION THIS (SATURDAY) MORNING FOR A TOTAL OF $1,386,000 WHICH WILL GO TO THE GOVERNMENT LOTTERIES FUND FOR CHARITY PURPOSES AFTER DEDUCTION OF EXPENSES INCURRED.

THE AUCTION, HELD AT THE RECITAL HALL OF THE CITY HALL, SAW THE REGISTRATION MARK AT888 FETCH THE HIGHEST PRICE OF $250,000.

ANOTHER REGISTRATION MARK BY10 WAS SOLD AT THE SECOND HIGHEST PRICE OF $230,000 WHILE THE LOWEST PRICE WAS $1,000 EACH FOR FC4363, FB6174, FB548 AND FB4278.

FOLLOWING ARE THE RESULTS OF TODAY’S AUCTION:

$ $ $ $

FC2668 22,000 FB7880 4,000 FA228 50,000 FB316 18,000

FC120 20,000 FC2028 12,000 FB882 40,000 FC978 23,000

♦FF898 40,000 ♦DS909 26,000 ♦ BY10 230,000 ♦AT888 250,000

FC211 20,000 FB638 23,000 FC6686 9,000 AA3418 9,000

FC880 31,000 FC328 60,000 FB9989 8,000 FB9929 6,000

BB6232 6,000 DJI 288 14,000 FA346 5,000 EC712 8,000

FB9888 23,000 FB2823 11,000 CF226 12,000 FC2232 9,000

♦ FC83 80,000 ♦ 7715 50,000 ♦FH636 40,000 ♦AR44OO 12,000

EU132 14,000 FC1238 24,000 FC987 22,000 FC608 10,000

FB9139 5,000 FB3398 9,000 FC612 12,000 FB257 4,000

FB770 7,000 FC207 2,000 ♦FF3311 86,000 FC4363 1,000

FC172 6,000 FB4278 1,000 FC9010 3,000 ♦FH747 7.000

FB6174 * 1,000 SPECIAL FB548 VEHICLE 1,000 REGISTRATION MARK (NOT TRANSFERABLE)

/SUCCESSFUL BIDDERS .......

SATURDAY, MARCH 13, 1993

7

SUCCESSFUL BIDDERS WERE REQUIRED TO PAY BY CHEQUE IMMEDIATELY AFTER THE BIDDING.

THE VEHICLE REGISTRATION MARKS AUCTIONED WILL BE ASSIGNED ONLY TO VEHICLE REGISTERED IN THE NAME OF THE SUCCESSFUL BIDDERS WITHIN 12 MONTHS OF THE DATE OF AUCTION.

TODAY’S SALE, THE 190TH ORGANISED BY THE TRANSPORT DEPARTMENT SINCE MAY 1973, BROUGHT THE TOTAL AMOUNT OF MONEY REALISED SO FAR TO $187,986,905.

-----0------

TENDERS INVITED FOR MARKET CONSTRUCTION

*****

THE AR(HITECTURAL SERVICES DEPARTMENT IS INVITING TENDERS FOR THE CONSTRUCTION OF A MARKET IN CAUSEWAY BAY.

LOCATED AT THE JUNCTION OF ELECTRIC ROAD AND MERCURY STREET THE TWO-STOREY MARKET WILL REPLACE THE EXISTING ONE WHICH IS TO BE DEMOLISHED SHORTLY.

THE NEW MARKET WILL PROVIDE A TOTAL FLOOR AREA OF 1,800 SQUARE

METRES AND CAN ACCOMMODATE 10 LARGE STALLS, 62 MINI STALLS AND A

REFUSE COLLECTION POINT.

THE CONTRACTOR IS ALSO RESPONSIBLE FOR THE PROVISION OF

ESCALATORS, LIFTS, LOADING AND UNLOADING FACILITIES AS WELL AS A

VENTILATION SYSTEM IN THE MARKET.

CONSTRUCTION WORK WILL BEGIN IN MID-JUNE FOR COMPLETION IN A

FORMS OF TENDER AND FURTHER PARTICULARS CAN BE OBTAINED FROM THE ARCHITECTURAL SERVICES DEPARTMENT, 34TH FLOOR, QUEENSWAY GOVERNMENT OFFICES, 66 QUEENSWAY, HONG KONG.

TENDER OFFERS WILL CLOSE AT NOON ON APRIL 2.

--------0-----------

/8.........

SATURDAY, MARCH 13, 1993

- 8 -

VOLUNTEER SERVICES NECESSARY TO A CARING COMMUNITY ♦ ♦ ♦ » *

VOLUNTEER SERVICES NOT ONLY CONTRIBUTE TO THE WELL-BEING OF THE COMMUNITY, BUT ALSO ENABLE VOLUNTEERS TO GET A BETTER UNDERSTANDING OF THE NEEDY, A WOMAN VOLUNTEER, MS AU CHUNG-WO, SAID AFTER 20 YEARS OF VOLUNTEER SERVICE.

SHE WAS AMONG THE 63 VOLUNTEERS RECEIVING OUTSTANDING VOLUNTEER AWARDS AT A PRESENTATION CEREMONY ORGANISED BY THE SOCIAL WELFARE DEPARTMENT TODAY (SATURDAY).

MS AU WAS A WELFARE WORKER IN A NON-GOVERNMENTAL ORGANISATION. ALTHOUGH HER DAILY WORK FOCUSED ON THE ELDERLY AND THE DISABLED, HER INTEREST IN VOLUNTEER SERVICE NEVER FADED.

SHE SAID VOLUNTEER SERVICE WOULD FOSTER THE DEVELOPMENT OF POSITIVE VALUES AND CULTIVATE A SENSE OF CONCERN FOR OTHERS.

THE ASSISTANT DIRECTOR OF SOCIAL WELFARE (YOUTH AND REHABILITATION), MR ANTHONY CHAN, SAID AT THE PRESENTATION CEREMONY THAT VOLUNTEERING WOULD HELP DEVELOP A CARING COMMUNITY AND A SPIRIT OF MUTUAL HELP.

HE SAID SOME OF THE OUTSTANDING VOLUNTEERS HAD THE VALUABLE EXPERIENCE OF SERVING MENTALLY HANDICAPPED PEOPLE AND EX-MENTAL PATIENTS.

. H

WHEN THEY FIRST GOT IN TOUCH WITH THE DISABLED, THEY HAD A SENSE OF FEAR.

BUT WHEN THEY GOT ALONG WITH THEM, ALL BECAME AWARE THAT THE HANDICAPPED SHOULD BE GIVEN EQUAL OPPORTUNITIES TO ENJOY THE SAME BASIC RIGHTS AS OTHER MEMBERS OF THE COMMUNITY.

THUS, MR CHAN CALLED ON THE VOLUNTEERS TO SHARE THEIR POSITIVE FEELINGS AND EXPERIENCE WITH THEIR FAMILY MEMBERS, RELATIVES AND FRIENDS TO ALLAY THEIR FEARS.

------0-------

BUS SERVICE FOR TIN SHUI ESTATE ♦ * * t *

THE TRANSPORT DEPARTMENT TODAY (SATURDAY) ANNOUNCED THAT KOWLOON MOTOR BUS WOULD INTRODUCE A NEW NEW TERRITORIES AIR-CONDITIONED BUS ROUTE NO. 269B RUNNING FROM TIN SHUI ESTATE TO STAR FERRY (SINGLE BOUND) ON MONDAY (MARCH 15).

THE ROUTE WILL BE SERVED BY DOUBLE DECKERS AT A FULL FARE OF $13 AND SECTION FARES OF $11 FROM TUEN MUN, $4.5 FROM MEI FOO AND $3.5 FROM LAI CHI KOK ROAD.

THE BUS WILL SET OFF FROM TIN SHUI ESTATE AT 7.15 AM AND 7.30 AM FROM MONDAYS TO SATURDAYS ONLY.

------0-------

/9....•

SATURDAY, MARCH 13, 1993

9

RENUMBERING OE CROSS HARBOUR EXPRESS BUS ROUTE

*****

THE TRANSPORT DEPARTMENT TODAY (SATURDAY) ANNOUNCED THAT CROSS HARBOUR EXPRESS BUS ROUTE 141 WOULD BE RE-ROUTED VIA EASTERN HARBOUR CROSSING FROM MONDAY (MARCH 15).

ITS TERMINAL POINT WILL ALSO MOVE FROM YAN O] COURT, KWUN TONG TO KAI YIP ESTATE BUS TERMINUS.

THE ROUTE WILL BE RE-NUMBERED TO 641.

--------0------------

THE WEATHER OF FEBRUARY *****

A RELATIVELY COLD JANUARY WAS FOLLOWED BY AN UNSEASONABLY MILD FEBRUARY, ACCORDING TO A MONTHLY WEATHER REPORT RELEASED BY THE ROYAL OBSERVATORY.

IN THE ABSENCE OF SIGNIFICANT SURGES OF COLD AIR FROM THE NORTH, EASTERLY MONSOON WINDS DOMINATED.

AS A RESULT, THE MONTHLY MEAN TEMPERATURE OF 18 DEGREES AND THE MONTHLY MEAN MINIMUM TEMPERATURE OF 16.3 DEGREES WERE BOTH THE FOURTH HIGHEST ON RECORD FOR FEBRUARY.

WITH ONLY 1.0 MILLIMETRE OF RAIN, THIS WAS THE SEVENTH DRIEST FEBRUARY ON RECORD. WHILE THE MONTHLY RAINFALL WAS ONLY ABOUT TWO PER CENT OF THE FEBRUARY NORMAL OF 48.0 MILLIMETRES, THE RAINFALL TOTAL OF 34.5 MILLIMETRES SINCE JANUARY 1 WAS LESS THAN HALF OF THE NORMAL OF 71.4 MILLIMETRES FOR THE PERIOD.

FRESH TO STRONG EASTERLIES ON THE FIRST TWO DAYS OF THE MONTH BROUGHT ABOUT COOL AND WINDY CONDITIONS. THE LOWEST TEMPERATURE OF 12.8 DEGREES TN THE MONTH WAS RECORDED ON THE MORNING OF FEBRUARY 2.

APART FROM SOME OFFSHORE MIST ON THE NIGHT OF FEBRUARY 1, THF WEATHER REMAINED FINE AND SUNNY.

AS WINDS MODERATED AND TURNED SOUTHEASTERLY ON FEBRUARY 3, TEMPERATURES ROSE STEADILY.

THE INTRUSION OF MARITIME AIR LED TO INCREASINGLY MOIST CONDITIONS. CLOUDINESS INCREASED SIGNIFICANTLY ON FEBRUARY 6 AND THERE WERE SOME DRIZZLE AND MIST PATCHES.

OVER OFFSHORE WATERS, MIST THICKENED INTO FOG IN THE EARLY MORNING OF FEBRUARY 7. MIST AND FOG SOON LIFTED AFTER DAYBREAK AND THE DAY WAS MUCH SUNNIER WITH WINDS VEERING FURTHER TO A SOUTHWESTERLY DIRECTION.

/FRESHENING OF .......

SATURDAY, MARCH 13, 1993

10 -

FRESHENING OF THE EASTERLIES IN THE EARLY HOURS OF FEBRUARY 8 GAVE RISE TO A COOLER DAY.

THE WEATHER TURNED MISTY AGAIN WITH SOME LIGHT RAIN ON THE NIGHT OF FEBRUARY 8. VISIBILITY IMPROVED ON FEBRUARY 10 AND GENERALLY FINE WEATHER PERSISTED TILL FEBRUARY 17.

IN THE MEANTIME, THERE WAS A LULL IN THE EASTERLIES ON FEBRUARY 11 AND SOME MIST PATCHES RETURNED IN THE EVENING BEFORE THE ARRIVAL OF ANOTHER EASTERLY REPLENISHMENT LATER THAT NIGHT.

FRESH TO STRONG EASTERLY WINDS PREVAILED FROM FEBRUARY 12 TO 14 BEFORE BEING REPLACED BY A SOUTHEASTERLY AIRSTREAM ON FEBRUARY 15. SOME MIST RE-APPEARED ON THE MORNING OF FEBRUARY 16 AND TEMPERATURES CLIMBED TO THE MONTH’S HIGHEST OF 23.4 DEGREES ON A DAY OF LIGHT WINDS.

FOLLOWING THE ARRIVAL OF A FRESH EASTERLY AIRSTREAM THE PREVIOUS DAY, CLOUDY WEATHER SET IN ON FEBRUARY 18 AND PERSISTED TILL THE END OF THE MONTH.

. / r) •

SOME LIGHT RAIN WAS RECORDED ON THREE SUCCESSIVE DAYS EROM FEBRUARY 18 TO 20.

AS CONDITIONS TURNED INCREASINGLY HUMID, MIST BECAME WIDESPREAD ON FEBRUARY 19. FOG HOVERED OFFSHORE EARLY ON FEBRUARY 20 AND SPREAD INTO THE HARBOUR ON THE MORNING OF FEBRUARY 21.

VISIBILITY GENERALLY IMPROVED ON FEBRUARY 22 BUT THE PASSAGE OF A WEAK COLD FRONT THAT DAY BROUGHT SOME LIGHT RAIN.

WINDS FRESHENED FROM THE EAST TO NORTHEAST IN THE AFTERNOON AND BY THE NEXT DAY, TEMPERATURES HAD DROPPED BY THREE TO FOUR DEGREES. EASTERLY WINDS STRENGTHENED FURTHER ON FEBRUARY 26 WITH SOME MIST PATCHES AND DRIZZLE IN THE EARLY PART OF THE DAY.

DRIZZLE OCCURRED AGAIN THAT NIGHT WHILE MIST APPEARED FROM TIME TO TIME TILL THE END OF THE MONTH WHEN WINDS STARTED TO TURN NORTHERLY.

NO TROPICAL CYCLONE ACTIVITY WAS OBSERVED OVER THE WESTERN NORTH PACIFIC AND THE SOUTH CHINA SEA IN FEBRUARY. NO AIRCRAFT WAS DIVERTED IN THE MONTH AS A RESULT OF INCLEMENT WEATHER. DETAILS ON THE ISSUANCE/HOISTI NG AND CANCELLATION/LOWERING OF VARIOUS WARNINGS/SIGNALS IN THE MONTH ARE SUMMARIZED IN TABLE 1.1. MONTHLY METEOROLOGICAL FIGURES AND DEPARTURES FROM NORMAL ARE TABULATED IN TABLE 1.2.

/TABLE 1.1 .......

SATURDAY, MARCH 13, 1993

11

TABLE 1.1 WARNINGS AND SIGNALS IN FEBRUARY 1993

WARNINGS/SIGNALS EFFECTIVE DATE AND TIME

STRONG MONSOON SIGNALS FEB 1, 2310 FEB 2, 1145

FEB 12, 0930 FEB 13, 0900

FEB 26, 2350 - FEB 27, 0800

FIRE DANGER WARNINGS

YELLOW FEB 12, 0620 FEB 15, 0615

FEB 17, 0615 - FEB 17, 1805

RED FEB 1, 0600 - FEB 1, 1815

TABLE 1.2 FIGURES AND DEPARTURES FROM NORMAL - FEBRUARY 1993

TOTAL BRIGHT SUNSHINE

MEAN DAILY GLOBAL SOLAR RADIATION

TOTAL RAINFALL

MEAN CLOUD AMOUNT

MEAN RELATIVE HUMIDITY

MEAN DAILY MAXIMUM TEMPERATURE

MEAN AIR TEMPERATURE

MEAN DAILY MINIMUM TEMPERATURE

MEAN DEW POINT

TOTAL EVAPORATION

126.7 HOURS ;

29 HOURS ABOVE NORMAL

11.60 MJ/SQM ;

0.91 MJ/SQM ABOVE NORMAL

1.0 MM ; 4 7.0 MM BELOW NORMAL

60% ; 13% BELOW NORMAL

78% ; NORMAL

20.3 DEGREES CELSIUS ;

1.7 DEGREES CELSIUS ABOVE NORMAL

18.0 DEGREES CELSIUS ;

2.1 DEGREES CELSIUS ABOVE NORMAL

16.3 DEGREES CELSIUS ;

2.4 DEGREES CELSIUS ABOVE NORMAL

13.9 DEGREES CELSIUS ;

2.1 DEGREES CELSIUS ABOVE NORMAL

64.5 MM ; 14.5 MM BELOW NORMAL

0 --------

/12 ........

SATURDAY, MARCH 13, 1993

- 12 -

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS * * *

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,165

REVERSAL OF LAF +760

BALANCE AFTER REVERSAL OF LAF 1,925

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY _975

CLOSING BALANCE IN THE ACCOUNT 950

LAF RATE 2.00 BID/4.00 OFFER TWI 114.2 *+0.1* 13.3.1993

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DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SUNDAY, MARCH 14, 1993

CONTENTS PAGE NO,

BUDGET ON ANTI-POLLUTION WORK INCREASED ........................ 1

EDUCATION DEPARTMENT RECRUITS PART-TIME LECTURERS............... 2

DELICIOUS SEAFOOD HELPS TO PROMOTE TOURISM ..................... 3

NEW VIDEO ON BUILDING MANAGEMENT RELEASED ...................... 3

PRE-RETIREMENT SEMINAR FOR CIVIL SERVANTS ...................... 4

OUTSTANDING STUDENTS TO RECEIVE AWARDS ......................... 5

SUNDAY, MARCH 14, 1993

- 1

BUDGET ON ANTI-POLLUTION WORK INCREASED

******

THE INCREASE IN THE BUDGET TO THE ENVIRONMENTAL PROTECTION DEPARTMENT (EPD) FOR 1993/94 WILL HELP THE DEPARTMENT TO STEP UP ITS ANTI-POLLUTION WORK, ASSISTANT DIRECTOR OF EPD, MR MIKE STOKOE, SAID.

MR STOKOE SAID THE INCREASED RESOURCES WOULD HELP TO MAKE HONG KONG A MUCH MORE PLEASANT AND HEALTHY PLACE TO LIVE IN.

APART FROM THE $4.9 BILLION INJECTION FOR THE IMPLEMENTATION OF THE SEWAGE STRATEGY TO DEAL WITH THE PRESSING SEWAGE PROBLEM, A TOTAL OF $933.4 MILLION HAS BEEN ALLOCATED TO THE DEPARTMENT FOR 1993/94.

MR STOKOE SAID 78 PER CENT OF THE DEPARTMENT’S EXPENDITURE, OR $728 MILLION, WOULD BE USED TO FUND A MUCH IMPROVED PROGRAMME FOR SOLID WASTE DISPOSAL.

"THE 1993/94 PROGRAMME INCLUDES THE COMMISSIONING OF THE CHEMICAL WASTE TREATMENT CENTRE IN APRIL, THE DESIGN, CONSTRUCTION AND COMMISSIONING OF THE FIRST TWO OF THE THREE STRATEGIC LANDFILLS IN THE NEW TERRITORIES, AND A NETWORK OF REFUSE TRANSFER STATIONS," HE SAID, WHEN ADDRESSING AN INTERNATIONAL VIDEO-CONFERENCE ON HONG KONG’S ENVIRONMENTAL PROBLEMS LAST FRIDAY.

WHILE ENVIRONMENTAL INFRASTRUCTURE PROJECTS AS PART OF THE COMPREHENSIVE WASTE DISPOSAL PLAN WOULD ACCOUNT FOR A LARGE SLICE OF THE ENVIRONMENTAL BUDGET, MR STOKOE POINTED OUT THAT OTHER ASPECTS OF POLLUTION WERE NOT NEGLECTED.

FOR EXAMPLE, OUT OF THE 128 POSTS TO BE CREATED IN THE DEPARTMENT FOR 1993/94, 46 POSTS WILL BE ALLOCATED FOR SUPPORTING CHEMICAL WASTE CONTROL AND FOR MONITORING THE IMPLEMENTATION OF THE WASTE DISPOSAL PROGRAMME, MR STOKOE SAID.

A FURTHER 41 ADDITIONAL POSTS WILL BE PROVIDED TO STRENGTHEN THE CONTROL AND IMPLEMENTATION OF THE WATER POLLUTION CONTROL ORDINANCE, MR STOKOE SAID.

"WE ARE NOW ABLE TO DECLARE THE WATER CONTROL ZONES IMMEDIATELY TO THE EAST AND WEST OF VICTORIA HARBOUR LATER THIS YEAR," HE SAID.

ON THE AIR SIDE, 21 ADDITIONAL POSTS ARE EARMARKED FOR INCREASED ENFORCEMENT AND CONTROL IN ORDER TO ACHIEVE AND MAINTAIN A SATISFACTORY STANDARD OF AIR QUALITY, HE SAID.

THAT INCLUDES CONTROLS ON ASBESTOS IN BUILDINGS AND THE REMOVAL OF THE EXEMPTIONS CURRENTLY ENJOYED BY CERTAIN INDUSTRIAL PROCESSES UNDER THE AIR POLLUTION CONTROL AMENDMENT ORDINANCE.

A FURTHER 12 NEW POSTS HAVE BEEN ALLOCATED FOR PREVENTING POTENTIAL ENVIRONMENTAL NOISE PROBLEMS AND RESOLVE ACTUAL PROBLEMS. ADDITIONAL LEGISLATION IS BEING INTRODUCED TO CONTROL CONSTRUCTION NOISE AND ROAD VEHICLE NOISE.

/EIGHT NEW .......

SUNDAY, MARCH 14, 1993

2

EIGHT NEW POSTS WILL BE USED TO PROVIDE AN INCREASED EMPHASIS ON THE DEPARTMENT’S INTENDED EFFORT TO IDENTIFY AND RESOLVE POTENTIAL ENVIRONMENTAL PROBLEMS THAT MAY ARISE IN THE COURSE OF PLANNING AND DEVELOPMENT, MR STOKOF, ADDED.

APART FROM ENVIRONMENTAL INFRASTRUCTURE PROJECTS AND LEGISLATIVE CONTROLS, THE DEPARTMENT WILL STEP UP ENVIRONMENTAL EDUCATION AND COMMUNITY SERVICE TO HARNESS THE COMMUNITIES EFFORT AND ENERGY TO PRODUCING A BETTER ENVIRONMENT IN HONG KONG.

AN ENVIRONMENTAL RESOURCE CENTRE LOCATED IN WAN CHAI WILL BE OPEN TO PUBLIC IN OCTOBER THIS YEAR. THE CENTRE WILL BE A GATEWAY TO ENVIRONMENTAL INFORMATION FOR MEMBERS OF THE PUBLIC WHO ARE INTERESTED IN ENVIRONMENTAL ISSUES.

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EDUCATION DEPARTMENT RECRUITS PART-TIME LECTURERS

*****

THE EDUCATION DEPARTMENT IS INVITING QUALIFIED TEACHERS TO FILL ITS EVENING PART-TIME LECTURING VACANCIES IN VARIOUS ADULT COURSES FOR THE 1993 SCHOOL YEAR.

A SPOKESMAN FOR THE DEPARTMENT TODAY (SUNDAY) REMINDED APPLICANTS THAT COMPLETED APPLICATION FORMS SHOULD BE RETURNED AS SOON AS POSSIBLE. THE CLOSING DATE IS MARCH 27.

APPLICATION FORMS ARE STILL OBTAINABLE FROM THE EDUCATION DEPARTMENT’S ADULT EDUCATION SECTION ON THE 11TH FLOOR OF WU CHUNG HOUSE, 213 QUEEN’S ROAD EAST, WAN CHAI.

THE SPOKESMAN SAID EXPERIENCE IN TEACHING ENGLISH LANGUAGE AT POST-SECONDARY OR SENIOR SECONDARY LEVELS; CHINESE LANGUAGE, SCIENCE, SOCIAL SUBJECTS OR COMMERCIAL SUBJECTS AT SENIOR SECONDARY LEVELS AND POSSESSION OF A DIPLOMA OR CERTIFICATE IN EDUCATION OR ADVANCED CERTIFICATE IN TEACHER TRAINING WOULD BE AN ADVANTAGE.

THE EXISTING REMUNERATIONS FOR PART-TIME LECTURING ARE:

* $270 PER HOUR FOR POST-SECONDARY LEVEL SUBJECTS;

* $225 PER HOUR FOR SENIOR SECONDARY LEVEL SUBJECTS;

* $180 PER HOUR FOR JUNIOR SECONDARY LEVELS SUBJECTS; AND

* $165 PER HOUR FOR PRIMARY LEVEL SUBJECTS.

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/3 .........

SUNDAY, MARCH 14, 1993

- 3

DELICIOUS SEAFOOD HELPS TO PROMOTE TOURISM *******

THE DELECTABLE SEAFOOD CUISINES IN SAI KUNG WILL FURTHER ENHANCE THE DISTRICT AS A "TOURIST MUST" FOR BOTH LOCAL AND OVERSEAS VISITORS, THE SECRETARY FOR HOME AFFAIRS, MR MICHAEL SUEN, SAID TODAY (SUNDAY).

SPEAKING AT THE OPENING CEREMONY OF THE 1993 SAI KUNG DISTRICT SEAFOOD FESTIVAL IN SAI KUNG TOWN, MR SUEN SAID THE ATTRACTIVE COUNTRY PARK SCENERY, THE BEAUTIFUL BEACHES AND RESORT CENTRES HAD ALREADY EARNED THE DISTRICT A REPUTATION OF BEING "HONG KONG’S BACK GARDEN".

HE ALSO NOTED THAT THE DEVELOPMENT OF TSEUNG KWAN O NEW TOWN AND THE THIRD INDUSTRIAL ESTATE WERE AT PRESENT IN FULL SWING TO COPE WITH RAPID CHANGES.

HE SAID THE GOVERNMENT WOULD CONTINUE TO FACILITATE THE TRAFFIC FLOW TO AND FROM THE URBAN AREA BY IMPROVING AND WIDENING STRATEGIC PARTS OF HIRAM'S HIGHWAY.

"ALL THESE INVESTMENTS, TOGETHER WITH SAI KUNG’S GOURMET SEAFOOD, WILL CERTAINLY BE PROPITIOUS FOR THE DEVELOPMENT OF TOURISM IN THE DISTRICT," MR SUEN SAID.

TODAY’S CEREMONY MARKED THE BEGINNING OF THE TWO-WEEK FESTIVAL. DURING THIS PERIOD, LOCAL RESTAURANTS WILL OFFER A VARIETY OF SEAFOOD CUISINE AT DISCOUNT RATES.

THE FESTIVAL IS JOINTLY ORGANISED BY THE SAI KUNG CHAMBER OF COMMERCE, SAI KUNG DISTRICT BOARD, SAI KUNG DISTRICT OFFICE AND HONG KONG TOURIST ASSOCIATION.

------ 0 -----

NEW VIDEO ON BUILDING MANAGEMENT RELEASED

*****

A VIDEO FILM ON "HOW TO RECOVER ARREARS OF MANAGEMENT FEES AND OTHER CHARGES" ARE NOW AVAILABLE FOR LOAN FREE OF CHARGE FROM ALL DISTRICT OFFICES.

THE FILM HAS BEEN PRODUCED BY THE CITY AND NEW TERRITORIES ADMINISTRATION (CNTA) AS PART OF A SERIES OF FILMS TO PROMOTE PROPER BUILDING MANAGEMENT.

A CNTA SPOKESMAN SAID THIS LATEST ADDITION WAS AIMED AT ADVISING OWNERS CORPORATIONS (OCS) AND MUTUAL AID COMMITTEES (MACS) ON THE METHODS TO RECOVER ARREARS FROM UNCO-OPERATIVE TENANTS AND OWNERS.

IN PARTICULAR, THE VIDEO WILL DETAIL THE PROCEDURES TO LODGE A CASE WITH THE SMALL CLAIMS TRIBUNAL, THE SPOKESMAN SAID.

/ALL OCS..........

SUNDAY, MARCH 14, 1993

- 4 -

ALL OCS, MACS AND VOLUNTARY AGENCIES ARE WELCOME TO BORROW THE VIDEO TAPES, HE ADDED.

THE SPOKESMAN REMINDED THE GROUPS THAT THEY COULD BORROW THREE OTHER VIDEO TITLES.

OF THESE, "THE FORMATION OF OCS AND BUILDING REPAIRS AND MAINTENANCE" ADVISES FLAT OWNERS ON THE PROCEDURES TO FORM THE BODIES AND THE UPKEEP OF THE BUILDINGS.

ANOTHER TITLE ILLUSTRATES THE ROLE AND RESPONSIBILITIES OF A CARETAKER IN THE DAY-TO-DAY MANAGEMENT OF PRIVATE BUILDINGS.

THE THIRD VIDEO ON "BUILDING INSURANCE" HIGHLIGHTS THE BENEFITS OF TAKING OUT INSURANCE AND THE TYPE OF POLICIES AVAILABLE.

FOR ENQUIRIES, PLEASE CONTACT THE PUBLIC ENQUIRY SERVICE COUNTERS IN DISTRICT OFFICES.

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PRE-RETIREMENT SEMINAR FOR CIVIL SERVANTS

*****

THE CIVIL SERVICE BRANCH WILL CONDUCT A SERIES OF SEMINARS STARTING FROM TOMORROW (MONDAY) TO PREPARE RETIRING CIVIL SERVANTS TO ADAPT TO RETIREMENT LIFE.

THREE SEMINARS, TWO IN CANTONESE AND ONE IN ENGLISH, ARE DESIGNED TO CATER FOR THE NEEDS OF DIFFERENT GROUPS OF OFFICERS.

THE TWO-DAY SEMINARS WILL PROVIDE INFORMATION AND ADVICE ON THE PSYCHOLOGICAL IMPACT OF RETIREMENT, HEALTH, FINANCE, OPEN LEARNING OPPORTUNITIES AND VOLUNTARY SERVICE.

THEY WILL ALSO HELP THE OFFICERS TO OVERCOME VARIOUS PROBLEMS AND TO DEVELOP A POSITIVE APPROACH TO RETIREMENT.

A TOTAL OF 600 RETIRING OFFICERS WILL BE TAKING PART IN THE SEMINARS.

THE FIRST SEMINAR, TO BE HELD IN THE CITY HALL THEATRE, WILL BE OPENED BY DEPUTY SECRETARY FOR THE CIVIL SERVICE, MRS ALICE LAI.

NOTE TO EDITORS:

THE FIRST SEMINAR FOR RETIRING CIVIL SERVANTS, IN CANTONESE, WILL BE HELD IN THE CITY HALL THEATRE, LOW BLOCK, EDINBURGH PLACE AT 9 AM TOMORROW (MONDAY). YOU ARE INVITED TO COVER THE EVENT.

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/5 .........


SUNDAY, MARCH 14, 1993

5

OUTSTANDING STUDENTS TO RECEIVE AWARDS

*****

TEN OUTSTANDING STUDENTS WILL RECEIVE AWARDS UNDER THE CENTRAL AND WESTERN GOOD STUDENT AWARD SCHEME AT A CEREMONY ON TUESDAY (MARCH 16).

IN ITS SIX CONSECUTIVE YEAR, THE AWARD AIMS AT COMMENDING SECONDARY SCHOOL STUDENTS STUDYING OR LIVING IN THE DISTRICT FOR THEIR EFFORTS IN CRIME PREVENTION AND COMMUNITY SERVICE.

THE WINNERS WILL EACH RECEIVE A SCHOLARSHIP WORTH $1,200. FOUR OF THOSE WITH DISTINGUISHED PERFORMANCE HAVE ALSO WON A SEVEN-DAY TOUR TO THE THREE GORGES OF THE YANGTZE RIVER IN CHINA.

CERTIFICATES AND SOUVENIRS WILL BE PRESENTED TO 40 CONSOLATION PRIZE WINNERS.

OFFICIATING GUESTS WILL INCLUDE EXECUTIVE COUNCIL MEMBER, PROFESSOR EDWARD CHEN KWAN-YIU; CENTRAL AND WESTERN DISTRICT BOARD CHAIRMAN, MR AMBROSE LAU; ASSISTANT DISTRICT OFFICER, MS MARY TSANG; DEPUTY DISTRICT COMMANDER (WESTERN) OF THE POLICE, MRS BONNIE SMITH; AND CHAIRMAN OF THE DISTRICT FIGHT CRIME COMMITTEE, MR CHOW YIN-SUM.

THE AWARD SCHEME IS ORGANISED BY THE CENTRAL AND WESTERN FIGHT CRIME COMMITTEE WITH HELP FROM THE DISTRICT OFFICE AND THE POLICE COMMUNITY RELATIONS OFFICES OF THE CENTRAL AND WESTERN POLICE DISTRICTS.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE CENTRAL AND WESTERN GOOD STUDENT AWARD SCHEME TO BE HELD ON TUESDAY (MARCH 16) AT 6.30 PM AT THE EXHIBITION SQUARE, THIRD FLOOR. SHUN TAK SHOPPING MALL, 200 CONNAUGHT ROAD, CENTRAL.

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Received by PRO «n__1UM.JES3

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

MONDAY, MARCH 15, 1993

\ CONTENTS PAGE NO.

\

GOVERNOR ADVISES YOUTH NOT TO START SMOKING .................. 1

NEWS REPORT ON EXCO MEMBERS REFUTED .......................... 1

HK URGES FOR EARLY URUGUAY ROUND CONCLUSION .................. 2

COMPREHENSIVE SOCIAL SECURITY ALLOWANCES ..................... 2

NEW PLANS TO BENEFIT WORKERS ................................. 3

PROGRAMME TO BOOST MANPOWER OF SOCIAL WORKERS ................ 5

ROAD IMPROVEMENT MEASURES ON STEEP ROADS COMPLETED ........... 6

PUBLIC SUPPORT TO WELFARE SERVICES ESSENTIAL ................. 7

OFFICERS ON ATTACHMENT TO UK IMMIGRATION SERVICE ............. 8

RETIRING CIVIL SERVANTS JOIN SEMINAR ......................... 8

FINANCE COMMITTEE TO EXAMINE DRAFT ESTIMATES OF EXPENDITURE . 9

FRESH WATER CUT IN YAU MA TEI ................................ 11

WATER STORAGE FIGURE ......................................... 11

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS ..

11

MONDAY, MARCH 15, 1993

1

GOVERNOR ADVISES YOUTH NOT TO START SMOKING

******

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, TODAY (MONDAY) ADVISED HONG KONG’S SMOKERS TO GIVE UP SMOKING AND NON-SMOKERS NOT TO START SMOKING AT ALL TN ORDER TO PRESERVE THEIR HEALTH.

SPEAKING AT THE ANTI-SMOKING YOUTH RALLY AT THE QUEEN ELIZABETH STADIUM, THE GOVERNOR SAID GIVING UP SMOKING WAS VERY DIFFICULT, THOUGH NECESSARY.

’’THE EASIEST THING TO DO IS NOT TO START SMOKING IN THE FIRST PLACE,” HE SAID.

”SO, I HOPE THAT THIS RALLY WILL ENSURE THAT SOME OF THOSE WHO SMOKE NOW WILL GIVE UP THE HABIT.

’’BUT, EVEN MORE IMPORTANT, THAT MOST OF YOU HERE WON’T START SMOKING AT ALL.”

TODAY’S YOUTH RALLY WAS ORGANISED BY THE HONG KONG COUNCIL ON SMOKING AND HEALTH IN CONJUNCTION WITH THE EDUCATION DEPARTMENT TO SPREAD TO YOUNG PEOPLE IN HONG KONG THE MESSAGE OF ’’HEALTHY YOUTH DON’T SMOKE”.

ECHOING THE THEME OF THE EVENT, MR PATTEN GAVE A PIECE OF HIS ADVICE TO THE 1,OOO-STRONG YOUNG PARTICIPANTS.

”MY MESSAGE TO YOU IS A VERY SIMPLE ONE. SAVE MONEY AND SAVE YOUR HEALTH AND DON’T SMOKE,” HE ADDED.

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NEWS REPORT ON EXCO MEMBERS REFUTED *****

IN RESPONSE TO AN ARTICLE IN A LOCAL CHINESE LANGUAGE NEWSPAPER TODAY (MONDAY) ALLEGING THAT THREE NON-GOVERNMENT MEMBERS OF THE EXECUTIVE COUNCIL WERE ’’ACTIVELY CONSIDERING RESIGNING FROM THE COUNCIL”, DR RAYMOND CH’IEN AND MR ANDREW LI ISSUED THE FOLLOWING STATEMENT:

"THE REPORT IS COMPLETELY UNTRUE. WE HAVE NO INTENTION OF RESIGNING FROM THE EXECUTIVE COUNCIL.”

MR C H TUNG, THE THIRD MEMBER NAMED IN THE NEWSPAPER, IS CURRENTLY OUT OF HONG KONG AND CANNOT BE CONTACTED.

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/2 .........

MONDAY, MARCH 15, 1993

2

HK URGES FOR EARLY URUGUAY ROUND CONCLUSION *****

HONG KONG IS AMONG THE 37 GOVERNMENTS THAT HAVE JUST ISSUED A MESSAGE TO THE PRESIDENTS OF THE UNITED STATES, THE EEC COMMISSION AND THE EUROPEAN COUNCIL, AND THE PRIME MINISTER OF JAPAN, URGING THEM TO ACCORD THE HIGHEST PRIORITY TO BRING THE URUGUAY ROUND TO AN EARLY AND SUCCESSFUL CONCLUSION.

"WE WELCOME THIS MOVE IN VIEW OF THE IMPORTANCE WE ATTACH TO THE URUGUAY ROUND. WE MUST CONTINUE TO DO ALL WE CAN TO PROMOTE A SUCCESSFUL AND BALANCED CONCLUSION," THE DIRECTOR-GENERAL OF TRADE, MR DONALD TSANG, SAID.

"A SUCCESSFUL URUGUAY ROUND WILL BOOST THE WORLD ECONOMY AND STRENGTHEN THE MULTILATERAL TRADING SYSTEM. BOTH ARE OF VITAL IMPORTANCE TO HONG KONG’S CONTINUED GROWTH AND PROSPERITY.

"THE MESSAGE HAS BEEN SENT TO THE KEY MAJOR PLAYERS AND THE HOPE IS THAT THEY W1LL EXERT THE NECESSARY POLITICAL WILL AND LEADERSHIP TO MOVE THE PROCESS FORWARD TO A CONCLUSION," HE ADDED.

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COMPREHENSIVE SOCIAL SECURITY ALLOWANCES

*****

IN RESPONSE TO ENQUIRIES ON THE LEVEL OF ALLOWANCES UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME, A GOVERNMENT SPOKESMAN REITERATED TODAY (MONDAY) THAT ONLY ONE PER CENT OF ALL RECIPIENTS UNDER THE NEW SCHEME WOULD BE GETTING ONLY THE BASIC RATE WITHOUT ANY EXTRA PAYMENT.

"THIS REPRESENTS ABOUT 1,000 PEOPLE OUT OF A TOTAL OF 100,000 WHO WILL BENEFIT UNDER THE NEW SCHEME.

"THESE ARE MAINLY PEOPLE WHO HAVE LESS NEEDS SUCH AS THOSE WHO DO NOT HAVE TO PAY RENTS.

"IT IS THEREFORE NOT MEANINGFUL TO CONCENTRATE ON THE LEVEL OF ALLOWANCE FOR THIS SMALL GROUP," HE SAID.

THE SPOKESMAN SAID THE AVERAGE MONTHLY ASSISTANCE FOR A SINGLE PERSON UNDER THE NEW SCHEME WOULD BE $2,000 A MONTH, AN INCREASE OF 19 PER CENT.

"THIS INCLUDES A STANDARD RATE PLUS A COMBINATION OF OTHER ALLOWANCES SUCH AS RENT ALLOWANCE,. SCHOOL-RELATED ALLOWANCE, TRAVELLING EXPENSES ALLOWANCE AND EXTRA DIET ALLOWANCE.

/’’THIS $2,000 ..........

MONDAY, MARCH 15, 1993

3

’’THIS $2,000 A MONTH ALLOWANCE IS THE AVERAGE FOR A SINGLE PERSON. ABOUT 37 PER CENT OF THIS GROUP WILL BE GETTING BETWEEN $2,000 AND $3,000 A MONTH, WHILE ABOUT FIVE PER CENT WILL BE GETTING MORE THAN $3,000 A MONTH,” HE SAID.

THE SPOKESMAN SAID THE SAME ARRANGEMENTS OF PAYMENT APPLY TO FAMILY CASES UNDER THE NEW SCHEME.

"THE AVERAGE PAYMENT FOR A FAMILY OF FOUR WILL BE $5,880 A MONTH, AN INCREASE OF 22 PER CENT.

"OF THIS GROUP, ABOUT 35 PER CENT WILL BE GETTING BETWEEN $6,000 AND $8,000 A MONTH, WHILE ABOUT TWO PER CENT WILL GET MORE THAN $8,000 A MONTH," HE SAID.

SUBJECT TO APPROVAL BY THE FINANCE COMMITTEE, THE NEW SCHEME WILL TAKE EFFECT ON JULY 1 THIS YEAR.

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NEW PLANS TO BENEFIT WORKERS *****

NEW PLANS ARE NOW IN HAND TO OFFER BETTER PROTECTION TO WORKERS PENDING FINANCE COMMITTEE’S FUNDING APPROVAL TO AN EX-GRATIA SCHEME FOR PNEUMOCONIOT1CS AND A LOAN SCHEME FOR VICTIMS OF WORK-RELATED ACCIDENTS, THE COMMISSIONER FOR LABOUR, MRS KATHERINE FOK, SAID TODAY (MONDAY).

"THE FINANCIAL SECRETARY HAS PROPOSED TO PROVIDE $100 MILLION TO FUND EX-GRATIA PAYMENTS TO SUFFERERS OF PNEUMOCONIOSIS DIAGNOSED BEFORE JANUARY 1981," MRS FOK SAID.

"UNDER THE PROPOSED SCHEME, EX-GRATIA PAYMENTS WILL BE PAID TO ALL PNEUMOCON1OTICS OF PRE-1981 CASES, ESTIMATED TO BE ABOUT 600, ON A QUARTERLY BASIS UNTIL DRATH.

"INITIALLY, THE RATE IS SET AT $1,800 PER MONTH AND WILL BE INFLATION-ADJUSTED ANNUALLY," SHE SAID.

MRS FOK STRESSED THAT THE SCHEME WAS NOT A FORM OF COMPENSATION.

IT IS DISTINCT FROM THE PNEUMOCONIOSIS COMPENSATION SCHEME UNDER THE PNEUMOCONIOSIS (COMPENSATION) ORDINANCE WHICH IS FUNDED BY A LEVY ON THE CONSTRUCTION AND QUARRYING INDUSTRIES.

SHE SAID THIS GROUP OF PEOPLE HAD RECEIVED ON AN ONE-OFF BASIS AMOUNTING TO $10.7 MILLION.

EX-GRATIA PAYMENTS

"OVER THE YEARS, MANY HAVE EXHAUSTED THEIR LUMP SUM PAYMENTS," SHE SAID.

/"THESE WORKERS, .......

MONDAY, MARCH 15, 1993

4

"THESE WORKERS, THOUGH NOT ELIGIBLE TO CLAIM COMPENSATION UNDER THE PNEUMOCONIOSIS (COMPENSATION) ORDINANCE WHICH CAME INTO OPERATION ON JANUARY 1, 1981, DESERVE SUPPORT FROM THE COMMUNITY," SHE ADDED.

THE LABOUR COMMISSIONER ALSO POINTED OUT THAT ANOTHER FORM OF ASSISTANCE IS ALSO AVAILABLE TO PNEUMOCONIOTICS WHO ARE SUFFERING FROM SEVERE INCAPACITY.

"UNDER THE SPECIAL NEEDS ALLOWANCE SCHEME ADMINISTERED BY THE SOCIAL WELFARE DEPARTMENT, A PERSON WHO IS ELIGIBLE MAY CLAIM A DISABILITY ALLOWANCE OR A HIGHER DISABILITY ALLOWANCE," MRS FOK SAID.

"THE EX-GRATIA PAYMENT WOULD BE PAYABLE ON TOP OF SUCH ALLOWANCES," SHE ADDED.

REGARDING A GRANT OF $10 MILLION AS PROPOSED BY THE FINANCIAL SECRETARY, MRS FOK SAID A NEW FUND WOULD BE SET UP TO PROVIDE INTEREST-FREE LOANS TO EMPLOYEES INJURED AT WORK AND TO THE DEPENDANTS OF EMPLOYEES WHO DIE AS A RESULT OF WORK-RELATED ACCIDENTS.

"UNDER THE EMPLOYEES’ COMPENSATION ORDINANCE, EMPLOYEES WHO ARE INJURED AT WORK OR DIE AS A RESULT OF WORK ACCIDENTS ARE ENTITLED TO RECEIVE COMPENSATION FROM THE EMPLOYERS," SHE SAID.

"VERY OFTEN, THIS GROUP OF VICTIMS OF WORK-RELATED ACCIDENTS MAY FACE FINANCIAL HARDSHIP WHILE THEY ARE WAITING FOR PAYMENT OF COMPENSATION.

"THE PROPOSED LOAN SCHEME IS TO PROVIDE TEMPORARY RELIEF FROM HARDSHIP FOR THIS GROUP OF PEOPLE," MRS FOK ADDED.

DURING THE PRESS CONFERENCE, THE COMMISSIONER FOR LABOUR SAID FINANCIAL PROVISIONS SOUGHT FOR THE LABOUR DEPARTMENT FOR THE NEXT FINANCIAL YEAR WAS $293.6 MILLION.

THIS REPRESENTS AN INCREASE OF 16 PER CENT OVER THE ORIGINAL ESTIMATE FOR THE CURRENT YEAR OR 0.8 PER CENT OVER THE REVISED ESTIMATE FOR THE CURRENT YEAR.

THE PROVISIONS SOUGHT FOR NEXT YEAR REPRESENT AN INCREASE OF 17 POSTS, BRINGING THE TOTAL NUMBER OF POSTS IN THE DEPARTMENT FROM 1,329 TO 1,346.

"THE ADDITIONAL POSTS ARE MAINLY INTENDED TO COPE WITH THE INCREASE OF WORKLOAD IN INDUSTRIAL SAFETY," MRS FOK SAID.

THE LABOUR DEPARTMENT HAS SUCCESSFULLY LAUNCHED A WORK SIMPLIFICATION SCHEME TO MAKE ITS PROCEDURES MUCH SIMPLER AND MORE COST-EFFECTIVE, THE LABOUR COMMISSIONER NOTED.

SHE ALSO POINTED OUT THAT THE DEPARTMENT HAD AMENDED THE EMPLOYEES’ COMPENSATION ORDINANCE TO SIMPLIFY PROCEDURES FOR MINOR EMPLOYEES’ COMPENSATION CASES.

/"DURING THE .......

MONDAY, MARCH 15, 1993

5

"DURING THE FIRST SIX MONTHS UP TO DECEMBER 1992, MORE THAN 7,800 MINOR INJURY CASES WERE SETTLED IN THIS WAY AND IT HAS SAVED THE WORKERS THE NEED TO TAKE TIME OFF TO VISIT THE LABOUR DEPARTMENT," SHE SAID.

"BY SETTING OUT CLEAR OBJECTIVES, BY DEPLOYING RESOURCES FLEXIBLY TO COPE WITH AREAS OF PRIORITY OR TO INITIATE NEW PROGRAMMES, BY USING MORE COST-EFFECTIVE WORK SYSTEMS, AND BY MAXIMISING THE RESOURCES AVAILABLE IN THE COMMUNITY, WE ARE CONFIDENT THAT WE WILL BE ABLE TO ACHIEVE OUR OBJECTIVES AND PROVIDE GOOD VALUE FOR MONEY," MRS POK SAID.

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PROGRAMME TO BOOST MANPOWER OF SOCIAL WORKERS * * * * *

THE SOCIAL WELFARE ADVISORY COMMITTEE (SWAC), AT ITS MEETING TODAY (MONDAY), ENDORSED A PROPOSAL TO RUN ANOTHER "BLISTER" PROGRAMME TO RAISE THE DIPLOMA STUDENT INTAKES BY 200 IN THE NEXT TWO YEARS.

BRIEFING COMMITTEE MEMBERS ON THE UPDATED MANPOWER PROJECTIONS ON THE DEMAND AND SUPPLY OF TRAINED SOCIAL WORKERS IN THE COMING YEARS, THE ASSISTANT DIRECTOR OF SOCIAL WELFARE (SOCIAL SECURITY), MR ALEXANDER FUNG, SAID THE MOVE WOULD HELP ALLEVIATE THE SHORTAGE OF DIPLOMA GRADUATE SOCIAL WORKERS.

ACCORDING TO THE SOCIAL WELFARE MANPOWER PLANNING SYSTEM REPORT NO. 5 RELEASED IN DECEMBER LAST YEAR, THERE WILL BE A SHORTFALL OF 152 WORKERS BY MARCH 1993 AND 190 THE FOLLOWING YEAR.

"THE SHORTFALL IS EXPECTED TO DETERIORATE TO A CUMULATIVE TOTAL OF 447 BY THE END OF 1996/97.

"THE PERSISTENT SHORTAGE OF DIPLOMA GRADUATE SOCIAL WORKERS IS MORE WORRYING AS THERE WILL BE A LARGE DEMAND FOR DIPLOMA GRADUATES TO MEET OPERATIONAL NEEDS ARISING FROM SERVICE IMPROVEMENT AND ESTABLISHMENT OF NEW UNITS," MR FUNG SAID.

MEMBERS OF THE ADVISORY COMMITTEE ON SOCIAL WORK TRAINING AND MANPOWER PLANNING, THUS, PROPOSED INCREASING THE NUMBER OF DIPLOMA PLACES IN TRAINING INSTITUTES THROUGH THE FOLLOWING MEASURES:

* THE TRAINING INSTITUTES TO REDIRECT THEIR RESOURCES TO EXPAND THEIR DIPLOMA PROGRAMMES;

* TO INTRODUCE A "BLISTER" PROGRAMME TO INCREASE THE DIPLOMA STUDENT INTAKES BY 200 IN THE NEXT TWO YEARS, AND

TO EXPLORE THE POSSIBILITY OF INTRODUCING A SOCIAL WORK SUB-DEGREE PROGRAMME IN TRAINING INSTITUTES.

/THE SWAC ........

MONDAY, MARCH 15, 1993

- 6 -

THE SWAC MEMBERS, WHILE GIVING A GREENLIGHT TO THE MEASURES, NOTED THAT A "BLISTER” PROGRAMME HAD BEEN INTRODUCED IN 1989/90 TO INCREASE THE STUDENT INTAKES OF ROTH THE DEGREE AND DIPLOMA PROGRAMMES.

ON SUPPLY OF SOCIAL WORK DEGREE GRADUATES, NR FUNG SAID: "AN OVERALL SURPLUS IS ANTICIPATED IN 1994/95 AND THEREAFTER, AND A CUMULATIVE SURPLUS OF 268 DEGREE GRADUATES IS FORECAST FOR THE YEAR 1996/97."

THE SURPLUS COULD BE ATTRIBUTED TO THE GOVERNMENT’S PLAN TO EXPAND DEGREE PLACES IN TERTIARY EDUCATION, HE EXPLAINED.

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ROAD IMPROVEMENT MEASURES ON STEEP ROADS COMPLETED

*****

ADDITIONAL SAFETY MEASURES HAVE BEEN ADOPTED ON 39 STEEP ROADS THROUGHOUT THE TERRITORY' TO ENHANCE THEIR SAFETY FOLLOWING THE COMPLETION OF A COMPREHENSIVE REVIEW BY' THE TRANSPORT DEPARTMENT.

THE REVIEW WAS CONDUCTED IN OCTOBER LAST YEAR AND COVERED SOME 100 STEEP ROADS WITH A GRADIENT STEEPER THAN 1 : 10 THROUGHOUT HONG KONG.

ITS PURPOSE WAS TO CRITICALLY EXAMINE THE CONDITIONS OF THE STEEP ROADS WITH EMPHASIS ON SAFETY' ASPECTS, PARTICULARLY ON THE USE OP SUCH ROADS BY HEAVY VEHICLES INCLUDING BUSES, THE CHIEF ENGINEER OF I HE TRAFFIC ENGINEERING (HONG KONG) DIVISION OF THE TRANSPORT DEPARTMENT, MR WILLIAM LIEW, SAID TODAY (MONDAY).

THE REVIEW EXAMINED SEVERAL SAFETY PRECAUTIONARY MEASURES INCLUDING ROAD SURFACE TREATMENT, CRASH BARRIERS, GUARD RAILINGS AND TRAFFIC SIGNS.

IT WAS CONCLUDED THAT THESE SAFETY MEASURES WERE ADEQUATE UNDER NORMAL CIRCUMSTANCES, HE SAID.

HE EXPLAINED THAT ROAD SURFACE TREATMENT IMPROVED THE SKID RESISTANCE OF ROAD SURFACE TO REDUCE THE STOPPING DISTANCE OF VEHICLES.

CRASH BARRIERS ARE INSTALLED AT BENDS TO PREVENT VEHICLES FROM OVER-SHOOTING IF SKIDDING OCCURS.

GUARD-RAILINGS PREVENT ILLEGAL PARKING OF VEHICLES ON STEEP ROADS. TRAFFIC SIGNS INFORM MOTORISTS OF THE GRADIENT OF THE SLOPE AND ADVISE THEM TO ENGAGE LOW GEAR.

OF THE ROADS SURVEYED, MEASURES WERE RECOMMENDED FOR 39 STEEP ROADS, OF WHICH 15 ARE ON HONG KONG ISLAND, NINE IN KOWLOON AND 15 IN THE NEW TERRITORIES.

/’’IT MUST............

MONDAY, MARCH 15, 1993

7

"IT MUST BE EMPHASISED THAT THE RECOMMENDATION OF ADDITIONAL SAFETY MEASURES FOR THESE 39 ROADS DOES NOT MEAN THAT THESE ROADS ARE UNSAFE, BUT RATHER TO MAKE THEM SAFER STILL," MR LIEW STRESSED.

"THE RECOMMENDED MEASURES ON THESE ROADS ARE SUBSTANTIALLY COMPLETED EXCEPT FOR A FEW WHERE THE WORKS ARE EXPECTED TO BE COMPLETED WITHIN A MONTH," HE SAID.

MR LIEW ALSO REMINDED MOTORISTS TO ENGAGE LOW GEAR WHEN DRIVING ON STEEP ROADS.

"IT IS GOOD DRIVING PRACTICE TO USE THE SAME GEAR WHETHER GOING UP-HILL OR DOWN-HILL ON THE SAME STRETCH OF ROAD," HE SAID.

- - 0------------

PUBLIC SUPPORT TO WELFARE SERVICES ESSENTIAL

*****

PUBLIC SUPPORT IS ESSENTIAL TO THE DELIVERY OF SOCIAL WELFARE SERVICES, IN PARTICULAR SERVICES FOR SENIOR CITIZENS, THE DIRECTOR OF SOCIAL WELFARE, MR IAN STRACHAN, SAID TODAY (MONDAY).

MR STRACHAN MADE THE REMARKS WHEN PRESENTING CHEQUES, ON BEHALF OF DR HUI WAI-HAAN, TO REPRESENTATIVES FROM TWO WELFARE ORGANISATIONS FOR THE ESTABLISHMENT OF FACILITIES FOR THE ELDERLY

TUNG WAH GROUP OF HOSPITALS RECEIVES $6 MILLION WHILE ST JAMES’ SETTLEMENT $5.4 MILLION FOR THE SETTING UP OF TWO AGED HOMES.

MR STRACHAN SAID THE GENEROUS DONATION OF A CAPITAL OF $10 MILLION BY DR HUI, AN ACADEMIC AND RETIRED RESEARCHER, IN JUNE 1990 WAS AN EXCELLENT EXAMPLE OF PUBLIC SUPPORT TO SOCIAL WELFARE SERVICES

"DR HUI'S LIFE HAS BEEN AN EXEMPLARY ACT OF SELFLESS GIVING. DURING HER WORKING LIFE, SHE DEVOTED HERSELF TO THE EDUCATION OF HER STUDENTS AT THE UNIVERSITY OF HONG KONG," HE SAID.

ON BEHALF OF THE ELDERLY PEOPLE WHO WILL BENEFIT FROM THE SERVICE, MR STRACHAN THANKED DR HUI FOR HER BENEVOLENCE.

--------0-----------

/8 ........

MONDAY, MARCH 15, 1993

- 8 -

OFFICERS ON ATTACHMENT TO UK IMMIGRATION SERVICE ♦ * * * ♦

FOUR IMMIGRATION OFFICERS WILL LEAVE FOR THE UNITED KINGDOM IN LATE MARCH FOR A SIX-WEEK ATTACHMENT PROGRAMME WITH THE UNITED KINGDOM IMMIGRATION SERVICE.

THEY ARE ACTING SENIOR IMMIGRATION OFFICERS MS HO CHING-YEE, MESSRS CHAN SHIU-KEUNG AND LEUNG WAI-KWONG, AND ACTING IMMIGRATION OFFICER MR FUNG KAI-YEE.

THE GROUP WILL VISIT BRANCHES OF THE HOME OFFICE HANDLING IMMIGRATION AND NATIONALITY MATTERS AS WELL AS IMMIGRATION OFFICES AND PORTS.

AT A BRIEFING BEFORE THEIR DEPARTURE, THE DIRECTOR OF IMMIGRATION, MR LAURENCE LEUNG, POINTED OUT THAT THE IMMIGRATION DEPARTMENT PLACED GREAT IMPORTANCE ON GIVING ITS STAFF PROFESSIONAL TRAINING.

HE SAID OWING TO THE GROWING COMPLEXITY OF IMMIGRATION WORK, MEMBERS OF THE SERVICE WERE REQUIRED TO BE VIGILANT AND ALERT TOWARDS CHANGES THAT HAD TAKEN PLACE.

MR LEUNG SAID HE HOPED THAT THE ATTACHMENT WOULD PROVIDE A GOOD OPPORTUNITY FOR THE OFFICERS TO WIDEN THEIR HORIZON AND TO HAVE A BETTER UNDERSTANDING OF THE WORK OF THEIR COUNTERPARTS IN THE UNITED KINGDOM.

----0------

RETIRING CIVIL SERVANTS JOIN SEMINAR

*****

ONE HUNDRED AND FIFTY RETIRING CIVIL SERVANTS ATTENDED A SEMINAR THAT WAS ORGANISED BY THE CIVIL SERVICE BRANCH THIS (MONDAY) MORNING TO HELP THEM ADAPT TO LIFE AFTER RETIREMENT.

SPEAKING AT THE OPENING OF THE SEMINAR, DEPUTY SECRETARY FOR THE CIVIL SERVICE, MRS ALICE LAI, SAID THE SEMINAR AIMED TO ENABLE PARTICIPANTS TO BETTER PLAN FOR AND MANAGE THE TRANSITION, TO RAISE AWARENESS AND TO DRAW ATTENTION TO ALL MATTERS THAT HAVE AN INFLUENCE ON THEIR RETIREMENT.

BY HELPING RETIRING OFFICERS TO DEFINE THEIR OWN PRIORITIES AND TAKE ACTION IN GOOD TIME, IT IS HOPED TO HELP THEM CONFRONT ANY LATENT FEAR AND APPREHENSION AND DEVELOP A POSITIVE AND HEALTHY ATTITUDE TOWARDS RETIREMENT, MRS LAI SAID.

"THE SEMINAR WILL ALSO PROVIDE A FORUM TO EXCHANGE VIEWS AND FEELINGS BETWEEN RETIRING COLLEAGUES AND EXPERTS IN SPECIFIC FIELDS AND TO IDENTIFY SOLUTIONS TO COMMON PROBLEMS," SHE SAID.

/THE TWO-DAY .......

MONDAY, MARCH 15, 1993

9

THE TWO-DAY SEMINAR PROVIDES INFORMATION AND ADVICE ON PRE-RETIREMENT PREPARATION, NUTRITION, HEALTH, FINANCE, HOW TO START A BUSINESS, OPEN LEARNING OPPORTUNITIES AND VOLUNTARY SERVICE.

TWO SIMILAR SEMINARS DESIGNED TO MEET THE NEEDS OF DIFFERENT GROUPS OF OFFICERS WILL BE CONDUCTED BEFORE MARCH 23.

--------0------------

FINANCE COMMITTEE TO EXAMINE DRAFT ESTIMATES OF EXPENDITURE ♦ * * * *

THE FINANCE COMMITTEE WILL PUBLICLY EXAMINE THE DRAFT ESTIMATES OF EXPENDITURE 1993/94 AT THREE SPECIAL MEETINGS TO BE HELD FROM WEDNESDAY (MARCH 17) TO FRIDAY (MARCH 19).

THIS YEAR’S MEETINGS WILL TAKE THE SAME FORMAT AS LAST YEAR WITH THE SESSIONS EXTENDED TO THREE DAYS TO PROVIDE MORE TIME FOR QUESTIONS.

EACH BRANCH SECRETARY WILL ATTEND WITH HIS KEY CONTROLLING OFFICERS AND MAKE A BRIEF PRESENTATION ON POLICIES IN THEIR PROGRAMME AREAS, THEIR PRIORITIES FOR THE YEAR AHEAD AND THE ALLOCATION OF RESOURCES TO THEM.

MEMBERS WILL THEN RAISE QUESTIONS ON POINTS MADE DURING THE PRESENTATION AND THE DRAFT EXPENDITURE ESTIMATES GENERALLY.

EACH MEETING WILL BEGIN AT 9.15 AM IN THE LEGISLATIVE COUNCIL CHAMBER. FOLLOWING IS THE PROGRAMME FOR THE SPECIAL MEETINGS:

SESSION

NO. DATE/TIME MARCH 17 (WEDNESDAY) 1 . 9.15 AM - 10.15 AM 2. 10.20 AM - 11.20 AM 3. 11.25 AM - 12.55 PM (12.5 5 PM - 2.15 PM 4 . 2.15 PM - 4.15 PM (4.15 PM - 4.30 PM 5 . 4.30 PM - 6.30 PM POLICY SECRETARY INVOLVED SECRETARY FOR THE CIVIL SERVICE SECRETARY FOR RECREATION AND CULTURE SECRETARY FOR TRANSPORT LUNCH BREAK) SECRETARY FOR EDUCATION AND MANPOWER TEA BREAK) SECRETARY FOR HEALTH AND WELFARE /MARCH 18

MONDAY, MARCH 15, 1993

- 10 -

MARCH 18 (THURSDAY)

6. 9.15 AM - 10.25 AM SECRETARY FOR TRADE AND INDUSTRY

7 . 10.30 AM - 11.40 AM SECRETARY FOR MONETARY AFFAIRS

8. 11.45 AM - 12.45 PM SECRETARY FOR THE TREASURY

(12.45 PM - 2.15 PM LUNCH BREAK)

9. 2.15 AM - 3.4 5 PM SECRETARY FOR ECONOMIC SERVICES

(3.45 PM - 4 PM TEA BREAK)

10. 4 PM - 5.30 PM SECRETARY FOR WORKS

11 . 5.35 PM - 6.30 PM DIRECTOR OF ADMINISTRATION (INCLUDING THE DIRECTOR OF LEGAL AID AND DIRECTOR OF INFORMATION SERVICES)

MARCH 19 (FRIDAY)

12. 9.15 AM - 10.15 AM SECRETARY FOR HOME AFFAIRS

13. 10.20 AM - 11.20 AM SECRETARY FOR CONSTITUTIONAL AFFAIRS

14. 11.25 AM - 12.45 PM SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS

(12.45 PM - 2.15 PM LUNCH BREAK)

15. 2.15 PM - 4.15 PM SECRETARY FOR SECURITY

( 4.15 PM - 4.30 PM TEA BREAK)

16. 4.30 PM - 6 PM REGISTRAR, SUPREME COURT ATTORNEY GENERAL AND CHAMBERS MANAGER

17. 6 PM - 6.40 PM COMMISSIONER FOR ADMINISTRATIVE COMPLAINTS COMMISSIONER, INDEPENDENT COMMISSION AGAINST CORRUPTION DIRECTOR OF HOUSING DIRECTOR OF AUDIT

MEMBERS 01' THE PUBLIC WHO WISH TO OBSERVE THE PROCEEDINGS MAY MAKE RESERVATIONS BY TELEPHONING 869 9492.

Ill ........

MONDAY, MARCH 15, 1993

- 11 -

FRESH WATER CUT IN YAU MA TEI

*****

FRESH WATER SUPPLY TO SOME PREMISES IN YAU MA TEI WILL BE CUT OFF FROM 11 PM ON WEDNESDAY (MARCH 17) TO 6 AM THE FOLLOWING DAY TO FACILITATE WASTE DETECTION WORK ON WATER MAINS.

THE SUSPENSION WILL AFFECT ALL THE PREMISES BOUNDED BY SHANGHAI STREET, KANSU STREET, BATTERY STREET AND NING PO STREET.

---------0----------

WATER STORAGE FIGURE * * *

STORAGE IN HONG KONG’S RESERVOIRS AT 9 AM TODAY (MONDAY) STOOD AT 52.3 PER CENT OF CAPACITY OR 306.446 MILLION CUBIC METRES.

THIS TIME LAST YEAR THE RESERVOIRS CONTAINED 194.986 MILLION CUBIC METRES OF WATER, REPRESENTING 33.3 PER CENT OF CAPACITY.

---------0----------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

* * ★ * *

$ MILLION

950

+1,200

2,150

NIL

-660

1,490

114.2 *+0.0* 15.3.1993

OPENING BALANCE IN THE ACCOUNT REVERSAL OF LAF

BALANCE AFTER REVERSAL OF LAF NET IN.JECTION/WITHDRAWAL TODAY EFFECT OF LAF TODAY

CLOSING BALANCE IN THE ACCOUNT LAF RATE 2.00 BID/4.00 OFFER TWI

/HONG KONG .......

MONDAY, MARCH 15, 1993

12 -

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS

TERMS YIELD TERM

1 WEEK 2.36 PCT 14 MONTHS

1 MONTH 2.79 PCT 17 MONTHS

3 MONTHS 2.95 PCT 20 MONTHS

6 MONTHS 3.15 PCT 23 MONTHS

HONG KONG GOVERNMENT BONDS

ISSUE COUPON PRICE YIELD

2405 5.50 102.25 3.56

2408 5.50 101.03 3.66

2411 4.375 101.34 3.82

2502 4.625 101.38 4.04

12 MONTHS 3.43 PCT

TOTAL TURNOVER OF BILLS AND BONDS

- 20.035MN

CLOSED 15 MARCH 1993

--------0-----------

Received by BRO on_jJL_MAR. 1993

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

TUESDAY, MARCH 16, 1993

CONTENTS PAGE NO.

GOVT STILL HOPES TO HAVE POLITICAL REFORM TALKS ............. 1

SANDWICH CLASS HOUSING - AN EXTENSION OF ASSTSTFD HOUSING PROGRAMME ................................................... 2

MORE SENIOR POSTINGS ANNOUNCED .............................. 4

FEBRUARY SALE AND PURCHASE AGREEMENTS OF BUILDING UNITS .... 5

WORK ON BRIDGE FORGES AHEAD ................................. 8

UNEMPLOYMENT AND UNDEREMPLOYMENT FIGURES FOR NOVEMBER 1992 - JANUARY 1993 .............................................. 9

GOVERNOR TO OPEN TIN SHUT WAT NEW TOWN ...................... 10

REGULATION OF INSURANCE INDUSTRY MAKING GOOD PROGRESS ....... 11

ANTI-POLLUTION PROSECUTION FIGURE RELEASED .................. 14

PROTECTION OVER INNER DEEP BAY PROPOSED ..................... 18

TOGETHERNESS DAY TO PROMOTE WELLBEING OF DISABLED ........... 19

SYMPATHY TO FAMILIES OF SEA VICTIMS ......................... 20

CJ TO PAY TRIBUTE TO FORMER QC .............................. 21

MORE VIETNAMESE GO HOME ..................................... 21

DTC REGISTRATION REVOKED .................................... 21

HONG KONG GOVERNMENT EXCHANGE FUND TENDER RESULTS ........... 22

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

23

TUESDAY, MARCH 16, 1993

1

GOVT STILL HOPES TO HAVE POLITICAL REFORM TALKS

*****

THE HONG KONG GOVERNMENT STILL HOPES THAT THERE CAN BE TALKS EVEN AFTER THE DISAPPOINTING TURN OF EVENTS AT THE ENI) OF LAST WEEK, THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, SAID TODAY (TUESDAY).

SPEAKING TO REPORTERS AFTER THIS (TUESDAY) MORNING’S EXECUTIVE COUNCIL MEETING, THE GOVERNOR SAID THAT WAS HONG KONG’S POSITION SINCE HE ANNOUNCED, ON THE ADVICE OF THE EXECUTIVE COUNCIL, THE DECISIONS ON THE GAZETTAL OF THE POLITICAL REFORM PROPOSALS AT THE END OF LAST WEEK.

"WE SET OUT AT THE END OF THE WEEK OUR POSITION AND NO ONE HAS QUESTIONED ITS INHERENT REASONABLENESS," HE SAID.

"NOBODY’S SUGGESTED WHERE WE WERE GOING TOO FAR IN WHAT WE SAID. SO, THAT IS THE POSITION.

"WE WILL CONTINUE TO SET OUT OUR POSITION AS POSITIVELY AND CONSTRUCTIVELY AS POSSIBLE IN A CALM AND COOL TONE OF VOICE BUT NOT WITHOUT PRINCIPLE AND NOT WITHOUT DETERMINATION TO WORK FOR THE SUCCESSFUL IMPLEMENTATION OF THE JOINT DECLARATION AND TO WORK FOR THE INTERESTS, THE LONG-TERM INTERESTS OF EVERY FAMILY IN HONG KONG."

ASKED ABOUT THE REASON FOR NOT GOING AHEAD AND TABLING THE BILL NOW, THE GOVERNOR SAID: "WE DISCUSSED THAT THIS MORNING AND CONCLUDED WHICH I THINK IS SENSIBLE, THAT WE SHOULD TAKE THAT DECISION, HAVING TAKEN THE JUDGMENT ON THE MEASURES THAT ARE BEFORE THE LEGISLATIVE COUNCIL AND HAVING TAKEN ACCOUNT OF OTHER DEVELOPMENTS AS WELL."

MR PATTEN SAID THE PREPARATION OF LEGISLATION WAS A STEADY PROGRESS.

"FIRST OF ALL, IT REQUIRES THE EXECUTIVE COUNCIL TO ENDORSE LEGISLATIVE PROPOSALS AND THAT HAPPENED IN EARLY FEBRUARY AFTER WHICH WE HAD THESE FIVE WEEKS OF NOT-YET-SUCCESSFUL DISCUSSIONS ABOUT TALKS AND YOU HAVE THE PROCESS OF THE GAZETTAL AND THEN IN DUE COURSE, TAKING ACCOUNT OF WHAT IS IN FRONT OF THE LEGISLATIVE COUNCIL, YOU HAVE THE DECISION TO INTRODUCE THE BILL TO THE LEGISLATIVE COUNCIL," HE SAID.

WHEN ASKED TO RESPOND TO REMARKS BY THE CHINESE PREMIER, MR LI PENG, THE GOVERNOR SAID WHATEVER THE WORDS USED ABOUT HONG KONG, THE HONG KONG GOVERNMENT WOULD CONTINUE TO DISCUSS THE FUTURE OF HONG KONG POSITIVELY AND CONSTRUCTIVELY.

"I WANT TO WORK HARD. THE HONG KONG GOVERNMENT WANTS TO WORK HARD FOR THE ORDINARY FAMILIES, THE ORDINARY PEOPLE OF HONG KONG. IT’S THEIR INTEREST THAT WE HAVE IN MIND," HE ADDED.

--------0------------

/2 .........

TUESDAY, MARCH 16, 1993

2

SANDWICH CLASS HOUSING -

\N EXTENSION OE ASSISTED HOUSING PROGRAMME

*****

THE EAST START SANDWICH ('LASS HOUSING SCHEME AIMS TO PROVIDE IMMEDIATE HELP TO SOME EAMILIES PENDING THE LAUNCHING 01- A LONG-TERM SCHEME TO BUILD AND SELL FLATS AT AFFORDABLE PRICES TO MIDDLE-INCOME PEOPLE.

THIS WAS STATED BY THE SECRF’I ARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY EASON, IN ANSWER TO PRESS ENQUIRIES TODAY (TUESDAY).

MR EASON SAID THE INITIAL SCHEME IS BEING DEVELOPED AS AN EARLY RESPONSE TO THE SI GN 1FI CANT RISE IN PROPERTY PRICES IN EARLY 1991.

EVEN WITH THE RECENT SOFTENING IN PRICES, MANY PEOPLE IN THE MIDDLE-1 NCOME GROUP ARE STILL UNABLE ’1’0 AFFORD THEIR OWN FLATS.

’’THEIR ASPIRATIONS FOR HOMI- OWNERSHIP WOULD BE FRUSTRATED FOR TOO LONG A TIME IE WE SIMPLY RELY ON A GRADUAL EXPANSION OF THE EXISTING ASSISTED HOUSING PROGRAMME; AN INCREASE IN THEIR EARNINGS TO CATCH UP WITH FLAT PRICES OR A FURTHER ADJUSTMENT IN PRICES.

"IT IS FOR THESE REASONS THAT THE GOVERNMENT DECIDED TO SPEED UP IMPLEMENTATION OF THE SCHEME BY MAKING FUNDS AVAILABLE TO PROVIDE THE SUBSIDY MORE DIRECTLY."

MR EASON EMPAHSISED THAT THE SANDWICH CLASS HOUSING SCHEME IN BOTH LONG AND SHORT TERM WILL NOT AFFECT THE EXISTING PUBLIC HOUSING PROGRAMME.

"RESOURCES FOR THE SCHEME WILL BE ADDITIONAL."

"THERE IS NO QUESTION OF THE SCHEME TAKING AWAY ANYTHING FROM PEOPLE NOW ELIGIBLE FOR OR ARE ALREADY ENJOYING PUBLIC HOUSING ASSISTANCE. ’’

CLARIFYING SOME MI SCONCEPT IONS ABOUT THE INTERIM SCHEME, MR EASON SAID THE BENEFICI AR IES WILL NEITHER RECEIVE THE SUBSIDY IN CASH NOR BENEFITS TO AN EXTENT GREATER THAN THOSE AVAILABLE UNDER THE HOME OWNERSHIP SCHEME (HOS).

HE SAID: "WHILE DETAILS OF THE INTERIM SCHEME ARE BEING WORKED OUT TAKING ACCOUNTS OF PUBLIC COMMENTS AND SUGGESTIONS, CARE IS BEING TAKEN TO SET UP A WATERTIGHT SYSTEM TO ENSURE THAT THE SUBSIDY IS USED SOLELY FOR THE PURPOSE OF ASSISTING MIDDLE-INCOME PEOPLE TO ACQUIRE THEIR OWN FLATS."

’’BENEFICIARIES WILL BE REQUIRED TO RETURN THE SUBSIDY THEY HAVE RECEIVED IF AND WHEN THEY LEAVE THE SCHEME FOR ONE REASON OR THE OTHER."

ON THE SUBSIDY LEVEL, MR EASON DID NOT EXPECT IT TO BE HIGHER THAN THAT ENJOYED BY HOS FLAT OWNERS.

"HOS FLATS ARE SOLD AT A DISCOUNT OF 35% - 45% OF THE

PREVAILING MARKET PRICES.

/’•IT MEANS ............

TUESDAY, MARCH 16, 1993

3

"IT MEANS THAT AN HOS FLAT VALUED AT $2 MILLION ON THE MARKET WILL BE SOLI) TO A SUCCESSFUL APPLICANT AT A DISCOUNT OF $700,000 TO $900,000."

"OF COURSE, HOS HOME BUYERS ARE SUBJECT TO RESALE RESTRICTIONS FOR THE PURPOSES OF PROTECTING THE SUBSIDY AND DISCOURAGING SPECULATION. THE SAME PRINCIPLE WILL APPLY TO THE SANDWICH CLASS HOUSING SCHEME.”

MR EASON SAID THE INTERIM SCHEME WILL BE IMPLEMENTED AT A PACE TO AVOID PUSHING UP PROPERTY PRICES.

"WE WILL REVIEW THE SCHEME INCLUDING THE NUMBER OF FLATS AVAILABLE AFTER THE INITIAL PHASE IS LAUNCHED LATER THIS YEAR."

"DEPENDING ON THE SUBSIDY LEVEL TO BE WORKED OUT, THERE MAY BE SCOPE TO EXTEND THE INTERIM SCHEME TO MORE ELIGIBLE HOME BUYERS," HE SAID.

ON THE LONG-TERM SCHEME, MR EASON SAID SITES FOR THE FIRST PHASE HAVE BEEN IDENTIFIED AND HAVE BEEN INCLUDED IN THE PROPOSED 1993-94 LAND DISPOSAL PROGRAMMME FOR CONSIDERATION BY THE LAND COMMISSION.

"IT REMAINS OUR AIM TO COMPLETE THE FIRST 5,000 PURPOSE-BUILT FLATS FOR SALE BY 1996-97.

"HOME BUYERS OF THE LONG-TERM SCHEME WILL BENEFIT FROM CONCESSIONARY PREMIA FOR THE SITES WHICH ARE EXPECTED TO BE GRANTED AT HALF OF THE FULL MARKET VALUE, THE SAME AS THAT FOR HOUSING SOCIETY’S EXISTING FLATS-FOR-SALE SCHEME."

MR EASON EMPHASISED THAT THE FUNDAMENTAL PRINCIPLE OF THE PUBLIC HOUSING PROGRAMME IS THAT WE SHOULD TRY TO MEET DIFFERENT HOUSING NEEDS OF DIFFERENT GROUPS.

"IT IS UNDER THIS BROAD PRINCIPLE THAT VARIOUS FORMS OF HOUSING ASSISTANCE, SUCH AS PUBLIC RENTAL FLATS, HOS FLATS AND HOME PURCHASE LOANS, ARE MADE AVAILABLE TO THE PUBLIC.

"THE SANDWICH CLASS HOUSING SCHEME IS A FURTHER EXTENSION OF THE ASSISTED HOUSING PROGRAMME TO CATER FOR THE NEEDS OF THE MIDDLEINCOME GROUP WHO HAVE BEEN CONTRIBUTING SO MUCH TO UK’S SUCCESS," MR EASON SAID.

--------0-----------

/« ........

TUESDAY, MARCH 16, 1993

- 4 -

MORE SENIOR POSTINGS ANNOUNCED

* * * ♦ ♦

THE GOVERNMENT ANNOUNCED TODAY (TUESDAY) THE FOLLOWING SENIOR POSTINGS OVER THE NEXT TWO MONTHS:

* WITH THE IMPENDING RETIREMENT OF MR T H BARMA, MISS DENISE YUE IS TO BE APPOINTED AS DIRECTOR-GENERAL OF INDUSTRY. MISS YUE, CURRENTLY DEPUTY SECRETARY FOR TRADE AND INDUSTRY, WILL TAKE UP HER NEW APPOINTMENT IN MID-MAY;

* MR NIGEL SHIPMAN, CURRENTLY COMMISSIONER FOR INSURANCE, WILL TAKE UP A NEW APPOINTMENT AS DIRECTOR OF GOVERNMENT SUPPLIES AT THE END OF APRIL; AND

* MR STEPHEN IP WILL SUCCEED MR SHIPMAN AS COMMISSIONER OF INSURANCE IN MID-MAY.

THE FOLLOWING ARE BRIEF BIOGRAPHICAL NOTES ON THESE OFFICERS:

MR T H BARMA, ISO, JP

MR BARMA, AGED 59, FIRST JOINED THE HONG KONG CIVIL SERVICE IN 1967 AND WAS APPOINTED TO THE ADMINISTRATIVE SERVICE IN THE FOLLOWING YEAR. HE ROSE TO HIS PRESENT RANK OF ADMINISTRATIVE OFFICER STAFF GRADE A IN 1989.

HE HAS SERVED IN A VARIETY OF POSTS INCLUDING THE SOCIAL WELFARE DEPARTMENT, THE FINANCE BRANCH, THE THEN HOME AFFAIRS DEPARTMENT AND THE POST OFFICE.

HE WAS DEPUTY SECRETARY FOR THE CIVIL SERVICE FROM 1984 TO 1986 AND COMMISSIONER, EXPORT CREDIT AND INSURANCE CORPORATION FROM 1986 TO 1989 .

MR BARMA WAS APPOINTED DIRECTOR-GENERAL OF INDUSTRY IN JULY 1989.

MISS DENISE YUE, JP

MISS YUE, AGED 40, JOINED THE ADMINISTRATIVE SERVICE IN 1974 AND ROSE TO HER PRESENT RANK OF ADMINISTRATIVE OFFICER STAFF GRADE Bl IN 1992.

SHE HAS SERVED IN A NUMBER OF DEPARTMENTS AND BRANCHES INCLUDING THE FINANCE BRANCH, THE CHIEF SECRETARY’S OFFICE, THE THEN NEW TERRITORIES ADMINISTRATION, THE URBAN SERVICES DEPARTMENT AND THE EDUCATION AND MANPOWER BRANCH.

/MORE RECENTLY .......

TUESDAY, MARCH 16, 1993

5

MORE RECENTLY, SHE WAS DEPUTY DIRECTOR OF THE HONG KONG ECONOMIC AND TRADE OFFICE IN NEW YORK FROM 1985 TO 1987, PRINCIPAL ASSISTANT FINANCIAL SECRETARY FROM 1988 TO 1991, DEPUTY DIRECTOR OF REGIONAL SERVICES DEPARTMENT FROM 1991 TO 1992, WHEN SHE TOOK UP HER CURRENT POSTING AS DEPUTY SECRETARY FOR TRADE AND INDUSTRY.

MR NIGEL SHIPMAN, JP

MR SHIPMAN, AGED 48, WAS FIRST SECONDED FROM THE SCOTTISH EDUCATION DEPARTMENT TO THE HONG KONG CIVIL SERVICE IN 1975.

HE WAS APPOINTED ADMINISTRATIVE OFFICER STAFF GRADE C IN 1980 AND ROSE TO HIS PRESENT RANK OF ADMINISTRATIVE OFFICER STAFF GRADE Bl IN 1991.

DURING HIS CAREER TO DATE, MR SHIPMAN HAS SERVED IN A VARIETY OF POSTS. MORE RECENTLY, HE WAS DEPUTY DIRECTOR OF HOUSING FROM 1990 TO 1992, WHEN HE TOOK UP HIS PRESENT APPOINTMENT AS COMMISSIONER FOR INSURANCE.

MR STEPHEN IP, JP

MR IP, AGED 41, JOINED THE ADMINISTRATIVE SERVICE IN 1973. IN HIS EARLY YEARS, HE SERVED IN THE HOUSING DEPARTMENT, THE FINANCE BRANCH, THE URBAN SERVICES DEPARTMENT, THE THEN UMELCO OFFICE AND THE S1IAMSHUIPO DISTRICT OFFICE.

FROM 1983 TO 1986, HE SERVED IN THE LANDS AND WORKS BRANCH AND BETWEEN 1987 AND 1992, HE WAS DEPUTY SECRETARY FOR MONETARY AFFAIRS.

MR IP HAS BEEN ASSISTANT TO THE PRESIDENT OF THE LEGISLATIVE COUNCIL SINCE NOVEMBER 1992.

--------0 -

FEBRUARY SALE AND PURCHASE AGREEMENTS OF BUILDING UNITS *»♦*»«

THE TOTAL NUMBER OF SALE AND PURCHASE AGREEMENTS OF BUILDING UNITS, MAINLY FL,ATS, REGISTERED IN THE LAND REGISTRY IN FEBRUARY INCREASED BY 105.6 PER CENT COMPARED WITH JANUARY’S EXCEPTIONALLY LOW LEVEL AND BY 5.3 PER CENT COMPARED WITH FEBRUARY LAST YEAR.

IN ALL, 8,739 SUCH AGREEMENTS WERE REGISTERED DURING THE MONTH. THE TOTAL AMOUNT OF THE CONSIDERATIONS INVOLVED WAS ABOUT $17.35 BILLION.

/THESE FIGURES .......

TUESDAY, MARCH 16, 1993

6

THESE FIGURES WERE INCLUDED IN THE MONTHLY STATISTICS ON PROPERTY TRANSACTIONS REGISTERED IN THE URBAN AND NEW TERRITORIES LAND REGISTRIES RELEASED TODAY (TUESDAY) BY THE REGISTRAR GENERAL.

THERE WERE FIVE BUILDING MORTGAGES AND 10,509 OTHER MORTGAGES REGISTERED IN THE MONTH, COMPARED TO SIX AND 10,164 RESPECTIVELY IN FEBRUARY 1992.

THE TOTAL AMOUNT SECURED UNDER NEW BUILDING MORTGAGES IN THE MONTH WAS ABOUT $0.20 BILLION COMPARED WITH ABOUT $0.66 BILLION IN FEBRUARY 1992.

THE TOTAL AMOUNT SECURED UNDER NEW MORTGAGES IN THE MONTH OTHER THAN BUILDING MORTGAGES ROSE BY 21.1 PER CENT FROM ABOUT $5.78 BILLION IN FEBRUARY 1992 TO ABOUT $7 BILLION IN FEBRUARY 1993.

THE TOTAL AMOUNT ACTUALLY DRAWN DOWN ON BUILDING AND OTHER MORTGAGES AT ANY PARTICULAR TIME MAY BE SIGNIFICANTLY LESS THAN THE TOTAL AMOUNT SECURED.

REPAYMENTS UNDER MORTGAGES OF ALL KINDS, AS EVIDENCED BY DISCHARGES AND MORTGAGEES’ RECEIPTS, INCREASED BY 0.2 PER CENT FROM ABOUT $2,799 BILLION IN FEBRUARY 1992 TO ABOUT $2,804 BILLTON IN FEBRUARY 1993.

/REGISTRAR GENERAL .......

REGISTRAR GENERAL’S DEPARTMENT

Consolidated Monthly Statistics in respect of deed* received for rczticnUoo in Ure Urban sgd New Territories Dittrfct Land Regjitrfc*

Month: February 1993

1 1 1 1 o 1 1 1 1 00 Item Nature of Deeds Number of Deeds received for registration Consideration (5)

Urban New Territories Total Urban New Territories Total

1. 2. 3. 4. 5. 6. • 7. 8. 9. 10. Assignment* of undivided shares Assignment* of whole lot, section or sub-section 5.971 ( 6,980 ) 48 4.214 ( 4.279 ) 679 10,185 ( 11,259 ) 727 21,912,797,836.94 2,548,640.455.42 4,589,638,496.63 1,327,468.804.50 26,502,436.333.57 3.876,109.259.92

Sub-total (1) ♦ (2) 6.019 4.893 10,912 24.461.438.292.36 5.917.107,301.13 30,378,545,593.49

Building Mortgagcs/Building Legal Charges Mortgagea/Legai Charge* (other than item 3) 4 6,197 1 4,312 5 10,509 177,000.000.00 5,543,545,852.99 18.000.000.00 1.459.356.860.06 195,000.000.00 t 7.002,902,713.05

Sub-total (3) ♦ (4) 6,201 4.313 10,514 5,720,545.852.99 1.477,356,860.06 7,197.902,713.05

Agreement* for Salo and Purchase of Undivided Shares Agreement* for Sale and Purchase of Whole Lol, Section or Sub-section 3,715 ( 3.992 ) 16 ‘ 5.024 ( 5,069 ) 220 8,739 ( 9,061 ) 236 11.639.742.722.47 2,455,780.000.00 5.707,687,603.35 1,806,189,396.21 17,347,430,325.82 4,261,969,396.21

Sub-total (5) ♦ (6) 3,731 5.244 8,975 14,095,522,722.47 7,513.876,999.56 21,609,399,722.03

Reccipts/Discharge/Releases Lcases/Tenancy Agreement* Exclusion Orders Others 4,518 281 0 4,050 2,521 208 0 2,766 7,039 489 0 6,816 2.330,980,150.69 472,834,341.56 2,803,814,492.25

Total 24,800 19.945 44,745 46,608.487.018.51 15,381.175.502.31 61,989,662,520.82

Note : Figures within brackets denote number of units involved

TUESDAY, MARCH 16, 1993

TUESDAY, MARCH 16, 1993

- 8 -

WORK ON BRIDGE FORGES AHEAD

*****

AN IMPORTANT EARLY MILESTONE IN THE CONSTRUCTION OF THE LANTAU FIXED CROSSING HAS BEEN REACHED WITH THE COMPLETION OF THE ’'SHOES" IN WHICH ONE OF THE HUGE TOWERS OF THE TSING MA BRIDGE WILL STAND.

THE TWO MASSIVE CAISSONS OF REINFORCED CONCRETE, WHICH ARE THE HEIGHT OF A SIX-STOREY BUILDING, ARE NOW ANCHORED OFF LANTAU READY TO BE PUT IN PLACE AT THE BASE OF THE TOWER OFF MA WAN ISLAND.

THEY WERE CAST ON BOARD A SPECIAL SUBMERSIBLE BARGE AT THE BRIDGE SITE ON TSTNG YI ISLAND, AFTER WHICH THE BARGE WAS PILOTED TO NORTH LANTAU JUST BEFORE THE WEEKEND.

IN A HIGH PRECISION OPERATION OVER TWO DAYS AND INVOLVING SEVERAL TUGBOATS, THE BARGE WAS GRADUALLY SUBMERGED TO ALLOW THE CAISSONS TO BE FLOATED FREE AND SECURED.

A SPOKESMAN FOR THE HIGHWAYS DEPARTMENT SAID TODAY (TUESDAY) THAT THIS WAS THE FIRST TIME SUCH AN OPERATION HAD BEEN CARRIED OUT IN HONG KONG AND THAT EVERYTHING WENT SMOOTHLY.

"THE SUBMERSION AND REFLOATING OF THESE GIANT CONCRETE BOXES WAS A DRAMATIC SIGHT," HE SAID, "AND A HIGHLY VISIBLE SIGN OF THE RAPID PROGRESS BEING MADE ON THE BRIDGE."

THEY WILL BE TOWED TO THE BRIDGE SITE AND PLACED ON A SPECIALLY PREPARED SEABED WHEN FOUNDATION EXCAVATION AND PREPARATION IS COMPLETED AT THE MA WAN TOWER IN THE NEXT FEW WEEKS.

EACH CAISSON IS 20 METRES BY 28 METRES AND 17 METRES TO 19 METRES HIGH. THE LOWER PORTION OF EACH CAISSON CONTAINS HOLLOW CELLS THAT WILL BE FLOODED TO GRADUALLY SUBMERGE THEM AT THE PRECISE LOCATION OF THE TOWER FOUNDATION.

THE SPACE LEFT BETWEEN THE CAISSONS AND THE FOUNDATION BED ROCK WILL BE FILLED WITH TREMIE CONCRETE WHICH IS A SPECIAL UNDERWATER CONCRETE PLACEMENT PROCESS. INFILL CONCRETE WILL THEN BE ADDED ABOVE THE TREMIE CONCRETE WITHIN THE CAISSONS.

THE UPPER 7 METRES OF EACH CAISSON WILL FORM THE REINFORCED CONCRETE BASE FOR EACH TOWER LEG. THESE BASES, TOGETHER WITH THE INFILL AND THE TREMIE CONCERTE, WILL SECURE THE TOWER.

AN ISLAND WILL BE CONSTRUCTED AROUND THE MA WAN TOWER WITH

ROCK ARMOUR. TO PROTECT IT FROM MARINE TRAFFIC.

THE TSI NG MA BRIDGE WILL BE ONE OF THE LONGEST SUSPENSION BRIDGES IN THE WORLD, AND THE LONGEST CARRYING BOTH ROAD AND RAIL TRAFFIC.

TOGETHER WITH THE KAP SHU I MUN BRIDGE, IT FORMS THE LANTAU FIXED CROSSING, WHICH IS ONE OF THE 10 PROJECTS IN THE AIRPORT CORE PROGRAMME. THE CROSSING IS DUE TO BE COMPLETED IN MAY 1997.

--------0

/9 ........

TUESDAY, MARCH 16, 1993

- 9 -

UNEMPLOYMENT AND UNDEREMPLOYMENT

FIGURES FOR NOVEMBER 1992 - JANUARY 1993

*****

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE FOR NOVEMBER 1992 -JANUARY 1993 WAS 2.0%, AND THE UNDEREMPLOYMENT RATE WAS 1.9%, ACCORDING TO THE LATEST LABOUR FORCE STATISTICS RELEASED TODAY (TUESDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

THE PROVISIONAL SEASONALLY ADJUSTED UNEMPLOYMENT RATE FOR THE PERIOD DECEMBER 1992 - FEBRUARY 1993 WAS 2.2%, WHILE THE PROVISIONAL UNDEREMPLOYMENT RATE WAS 1.7%.

THE LATEST FIGURES SUGGEST THAT THE LABOUR MARKET WAS GENERALLY TIGHT, ALTHOUGH THERE HAD BEEN SLIGHT EDGING UP OF THE UNEMPLOYMENT RATE. UNEMPLOYMENT FIGURES ARE AFFECTED BY SOME WORKERS LEAVING THEIR JOBS AFTER THE LUNAR NEW YEAR HOLIDAYS AND BECOMING TEMPORARILY UNEMPLOYED.

DURING THE PERIOD NOVEMBER 1992 - JANUARY 1993, THE NUMBER OF UNEMPLOYED PERSONS, ADJUSTED FOR VARIATIONS IN THE NUMBER OF FIRSTTIME, JOB-SEEKERS, WAS ESTIMATED AT 56,000, WHILE THE NUMBER OF UNDEREMPLOYED PERSONS WAS ESTIMATED AT 52,700.

THE UNEMPLOYMENT AND UNDEREMPLOYMENT STATISTICS WERE OBTAINED FROM A CONTINUOUS GENERAL HOUSEHOLD SURVEY CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT.

THE SURVEY FOR NOVEMBER 1992 - JANUARY 1993 COVERED A QUARTERLY SAMPLE OF SOME 12,000 HOUSEHOLDS OR 41,400 PERSONS, SELECTED SCIENTIFICALLY TO REPRESENT THE LAND-BASED CIVILIAN NON-INSTITUTIONAL POPULATION IN HONG KONG.

RELEVANT DATA WAS OBTAINED IN THE SURVEY BY INTERVIEWING EACH INDIVIDUAL MEMBER AGED 15 AND ABOVE IN THE HOUSEHOLDS SAMPLED.

IN THE SURVEY, THE DEFINITIONS USED IN MEASURING UNEMPLOYMENT AND UNDEREMPLOYMENT FOLLOW CLOSELY THOSE RECOMMENDED BY THE INTERNATIONAL LABOUR ORGANISATION.

DETAILED ANALYSIS OF LABOUR FORCE CHARACTERISTICS IS GIVEN IN THE REPORT ON THE GENERAL HOUSEHOLD SURVEY WHICH IS PUBLISHED FOUR TIMES A YEAR.

THE NEXT REPORT COVERING THE QUARTER ENDING DECEMBER 1992 WILL BE AVAILABLE FROM THE GOVERNMENT PUBLICATIONS CENTRE BY THE END OF MARCH AT $15.50 A COPY.

- - - - 0 --------------

/10 ........

TUESDAY, MARCH 16, 1993

- 10 -

GOVERNOR TO OPEN TIN SHUI WAI NEW TOWN

*****

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, WILL OFFICIATE AT

THE OPENING CEREMONY OF THE TIN SHUI WAI NEW TOWN ON MARCH 26 (FRIDAY).

ANNOUNCING THIS TODAY (TUESDAY) DURING A PRESS VISIT TO THE NEW TOWN, THE DEPUTY SECRETARY FOR WORKS (PROGRAMME AND RESOURCES), MISS ELAINE CHUNG, SAID MOST OF THE INFRASTRUCTURAL PROJECTS AND FACILITIES FOR TIN SHUI WAI HAD BEEN COMPLETED.

MISS CHUNG SAID THE NEW TOWN - THE EIGHTH BUILT UNDER THE GOVERNMENT’S NEW TOWN PROGRAMME LAUNCHED IN 1972 - WAS UNIQUE AMONG HONG KONG’S NEW TOWNS FOR THREE REASONS.

FIRST, TIN SHUI WAI HAS BEEN A JOINT INITIATIVE BETWEEN THE GOVERNMENT AND THE PRIVATE SECTOR FROM THE VERY BEGINNING.

THE AREA WAS FORMERLY FISH PONDS AND DUCK FARMS IN THE 1960’S AND 1970’S.

IN THE 1970’S, THE LAND WAS ACQUIRED BY TIN SHUI WAI DEVELOPMENT LTD. IN 1982, THE COMPANY AND THE GOVERNMENT ENTERED INTO AN AGREEMENT TO JOINTLY DEVELOP THE AREA AS PART OF THE NEW TOWNS. PROGRAMME, MISS CHUNG NOTED.

THE SECOND REASON FOR THE NEW TOWN’S UNIQUENESS WAS ITS VERY FAST SPEED OF DEVELOPMENT.

IN 1989, THE SITE HERE WAS NOTHING BUT SAND. BETWEEN 1989 AND 1991, ONE OF THE WORLD’S LARGEST DREDGER MOVED A TOTAL OF 19 MILLION CUBIC METRES OF MARINE FILL FROM DEEP BAY TO FORM OVER 460 HECTARES OF LAND.

"THE BUILDING RATE ACHIEVED AT TIN SHUI WAI HAS BEEN ONE FLOOR FOR EVERY FOUR TO FIVE DAYS WHICH MUST BE SOMETHING OF A WORLD RECORD," SHE EXPLAINED.

THE THIRD REASON WAS THE COMPLETELY HARMONISED BLOCKS DESIGN AT THE NEW TOWN.

THE AVERAGE SITE COVERAGE FOR PRIVATE LOTS IS 24 PER CENT ONLY. THERE ARE VERY GENEROUS AREAS FOR ACTIVE AND PASSIVE RECREATION.

THE RESIDENTIAL DEVELOPMENT IN TIN SHUI WAI SURROUNDS A CENTRAL DISTRICT PARK AND IS GROUPED INTO FOUR NEIGHBOURHOODS, EACH RELATIVELY SELF-CONTAINED WITH SHOPPING CENTRES, PRIMARY SCHOOLS, WELFARE AND RECREATIONAL VENUE, AMONG OTHER FACILITIES.

TIN SHUI WAI IS BEING DEVELOPED IN PHASES. THE FIRST PHASE COVERING 169 HECTARES WILL BE HOME TO SOME 135,000 PEOPLE BY 1995.

THE AREA IS WITHIN A PLANNED DEVELOPMENT ZONE OF 220 HECTARES, THE REMAINDER OF WHICH WILL BE DEVELOPED AT A LATER STAGE.

/MISS CHUNG ........

TUESDAY, MARCH 16, 1993

11

MISS ('HUNG SAID THE DEVELOPMENTS HAD REQUIRED AN INVESTMENT OF ABOUT $10 BILLION, WITH TWO-THIRDS COMING FROM THE PUBLIC SECTOR AND THE BALANCE FROM THE PARTNER DEVELOPER.

TO THE NORTH OF THE EXISTING DEVELOPMENT ZONE, 210 HECTARES OF LAND HAVE BEEN EARMARKED AS A RESERVE ZONE FOR LONGER TERM DEVELOPMENT.

MISS CHUNG ALSO NOTED THAT THE OPENING OF TIN SHU I WAI NEW TOWN COINCIDED WITH THE 20TH ANNIVERSARY OF THE NEW TOWNS PROGRAMME.

"THIS PROGRAMME HAS COMPLETELY TRANSFORMED THE FACE OF THE NEW TERRITORIES.”

THE INITIAL 10 YEARS TARGET IN 1973 WAS TO DEVELOP THREE NEW TOWNS TO HOUSE 1.8 MILLION PEOPLE.

IN THE FOLLOWING DECADE, FIVE MORE TOWNS WERE DEVELOPED. 1989 SAW THE DECISION TO PLAN THE NINTH NEW TOWN AT TING CHUNG.

THE NEW TOWNS NOW PROVIDE HOME FOR 2.5 MILLION RESIDENTS.

-----0-------

REGULATION OF INSURANCE INDUSTRY MAKING GOOD PROGRESS

*****

GOOD PROGRESS IS BEING MADE IN IMPROVING THE REGULATION OF THE INSURANCE INDUSTRY, THE COMMISSIONER OF INSURANCE, MR NIGEL SHIPMAN, SAID TODAY (TUESDAY).

AT A PRESS CONFERENCE TO INTRODUCE HIS OFFICE’S ANNUAL REPORT FOR 1992, HE NOTED THAT THE INSURANCE AUTHORITY HAD REACHED AGREEMENT DURING THE YEAR WITH THE INDUSTRY REGARDING THE REGULATION OF INSURANCE AGENTS.

’’ALL INSURANCE AGENTS ARE NOW REQUIRED TO BE REGISTERED WITH A CENTRAL REGISTRATION BOARD.

’’THE REGISTRATION OF AGENTS BEGAN IN JANUARY 1993. AN AGENT MAY ONLY REPRESENT UP TO FOUR PRINCIPALS, SUBJECT TO A MAXIMUM OF TWO FOR LIFE INSURANCE," HE SAID.

"FURTHERMORE, INSURERS HAVE AGREED TO ACCEPT RESPONSIBILITY FOR THE ACTIONS OF THEIR INSURANCE AGENTS," HE EXPLAINED.

MR SHIPMAN ALSO NOTED THAT A UNIFIED BODY TO BE RESPONSIBLE FOR THE SELF-REGULATION OF INSURANCE BROKERS HAD RECENTLY BEEN FORMED.

UNDER THE PROPOSED REGULATORY SYSTEM, AN INSURANCE BROKER WOULD BE REQUIRED TO MEET APPROPRIATE PROFESSIONAL STANDARDS AS A CONDITION OF REGISTRATION, HE SAID.

/•’LEGISLATION IS ........

THURSDAY, MARCH 16, 1993

12

LEGISLATION IS BEING PREPARED TO SUPPORT THIS SYSTEM OF

REGULATION

TN PARTICULAR BY PROVIDING THAT NO ONE MAY HOLD

SELF-HIMSELF

OUT TO BE AN INSURANCE INTERMEDIARY UNLESS HE IS A REGISTERED AGENT OR

BROKER

OR HAS

OTHERWISE BEEN

AUTHORISED BY THE INSURANCE AUTHORITY,

HE ADDED.

”WHILE

LEGISLATION

THE

WILL

PROCESS OF CONT I NUE,

REVIEWING AND UPDATING OF THE

IT

ITSELF SHOULD BE

ENCOURAGED

TO

REGULATORY

SYSTEM

WHICH

RESPONSIVENESS,” MR SHIPMAN

COULD SAID.

ALSO DESIRABLE

MOVE TOWARDS PROVIDE GREATER

THAT

THE

INSURANCE

INDUSTRY

A

SUCCESSFUL SELF-

FLEXIBILITY

AND

HE EXTENDED HONG KONG

POINTED OUT THAI’

LN 1993

THE ROLE OF HIS

OFFICE

TO

THE REGISTRATION OF OCCUPATIONAL RETIREMENT

WOULD SCHEMES

BE IN

NOTING

THAT THE REGISTRATION SYSTEM WOULD TAKE EFFECT IN

1 993,

HE

SAID:

THIS

PROCESS WILL PROVIDE

A

GREATER DEGREE

ASSURANCE THAT RETIREMENT BENEFITS PROMISED BY EMPLOYERS WILI

TO THE EMPLOYEES AND WILL ALSO PROVIDE A SOLID FUTURE COMPULSORY RETIREMENT PROTECTION SCHEME IN

FOUNDATION

HONG KONG.”

BE

FOR

M1D-

OF PAID ANY

THE

YEAR 1992 ALSO SAW AMENDMENTS TO THE

INSURANCE COMPANIES

ORDINANCE WHICH REMOVED THE EXEMPTION FOR UK-AUTHORISED INSURERS FROM CERTAIN AUTHORISATION REQUIREMENTS.

APPOINT

MANAGER

THE AMENDED ORDINANCE ALSO EMPOWERED THE AN ADVISER ON THE AFFAIRS Ol AN INSURER

INSURANCE AUTHORITY TO

TO

ASSUME MANAGEMENT CONTROL OF AN

AND/OR TO INSURER

APPOINT

IN

A

CERTAIN

SPECIFIED CIRCUMSTANCES,

MR SHIPMAN SAID.

DURING THE YEAR BILL WAS GAZETTED.

THE INSURANCE

C'OMPANIES

(AMENDMENT)

( NO.

3)

”ITS OBJECT

INTER ALIA,

TO PERMIT

INFORMATION

TO

DISCLOSED INSURER

TO THE INSURANCE AUTHORITY B\ THE \UDITOR OR ACTUARY OF

AND TO INTRODUCE TO THE ORDINANCE THREE NEW CLASSES

OF

TERM SAID.

BUSINESS

RELATING TO THE PROVISION OF RETIREMENT BENEFITS,

BE

AN LONG ” HE

ACCORDING TO THE ANNUAL REPORT PUBLISHED TODAY, THERE WERE

233

AUTHORISED INSURERS OPERATING IN HONG KONG AS

AT

DECEMBER 31, 1992

OF

INSURERS

THE USA,

THEM, 106 WERE INCORPORATED IN

HONG KONG.

AMONG

INCORPORATED OVERSEAS, 32 WERE INCORPORATED IN THE UK, 21

NINE IN BERMUDA

EIGHT IN JAPAN, SEVEN IN SWITZERLAND,

THE

IN-FIVE

IN EACH OF CANADA, FRANCE

AND

SINGAPORE, AND FOUR IN CHINA.

DURING 1992

INSURANCE WITHDRAWN, CEASED TO

BUS I NESS,

IWO

AND

NEW

THE

INSURERS WERE AUTHORISATION

AUTHORISED

OF NINE

PRIMARILY ON THE GROUNDS THAT THE COMPANIES

TO CARRY-INSURERS CONCERNED

ON WAS HAD

CARRY ON INSURANCE BUSINESS IN HONC

KONG.

/ON THE

TUESDAY, MARCH 16, 1993

- 13 -

ON THE STATISTICS RELATING TO THE INSURANCE INDUSTRY IN 1991, THE REPORT SHOWED THAT THE TOTAL GROSS PREMIUMS AND NET PREMIUMS FOR HONG KONG GENERAL BUSINESS (DIRECT AND REINSURANCE INWARD) FOR THE FISCAL YEAR 1991 AMOUNTED TO $11,216 MILLION AND $7,091 MILLION RESPECTIVELY.

IN TERMS OF GROSS PREMIUM INCOME, PROPERTY DAMAGE INSURANCE BUSINESS HAD THE LARGEST MARKET SHARE (29%), FOLLOWED BY MOTOR VEHICLE (22%) AND GENERAL LIABILITY (WHICH INCLUDES EMPLOYEES’ COMPENSATION INSURANCE) (15%).

THE TOTAL GROSS AND NET CLAIMS PAID IN RESPECT OF HONG KONG GENERAL BUSINESS FOR THE FISCAL YEAR 1991 WERE $5,355 MILLION AND $3,280 MILLION RESPECTIVELY.

REGARDING UNDERWRITING RESULTS, AN OVERALL UNDERWRITING LOSS OF $309 MILLION WAS REPORTED FOR ALL CLASSES OF GENERAL BUSINESS. PARTICULARLY HIGH LOSSES WERE EXPERIENCED IN RESPECT OF GENERAL LIABILITY ($249 MILLION) AND PROPERTY DAMAGE INSURANCE ($122 MILLION).

STARTING FROM 1991 LONG TERM BUSINESS WAS REQUIRED TO REPORT ITS HONG KONG MARKET STATISTICS.

THE TOTAL ANNUALISED GROSS PREMIUMS (OFFICE PREMIUMS) FOR HONG KONG LONG TERM BUSINESS IN FORCE FOR THE FISCAL YEAR 1991 AMOUNTED TO $10,765 MILLION. NET LIABILITY AMOUNTED TO $28,624 MILLION.

IN TERMS OF PREMIUMS, INDIVIDUAL LIFE AND ANNUITY BUSINESS TOOK THE LARGEST MARKET SHARE (60%), FOLLOWED BY RETIREMENT SCHEMES (35%) AND INDIVIDUAL LINKED LONG TERM (3%).

HOWEVER, IN TERMS OF NET LIABILITY, RETIREMENT SCHEMES BUSINESS ACCOUNTED FOR 56%, FOLLOWED BY INDIVIDUAL LIFE AND ANNUITY (34%) AND INDIVIDUAL LINKED LONG TERM (10%).

THERE WERE ABOUT 1.5 MILLION INDIVIDUAL LIFE INSURANCE POLICIES IN FORCE. TOTAL ANNUALISED GROSS PREMIUMS FOR INDIVIDUAL LIFE BUSINESS WERE $6,747 MILLION, EQUIVALENT TO $4,264 PER HOUSEHOLD.

IN RESPECT OF RETIREMENT SCHEMES BUSINESS, THERE WERE 5,949 POLICIES IN FORCE WITH CONTRIBUTIONS MADE DURING THE FISCAL YEAR 1991 AMOUNTING TO $3,735 MILLION. THE AGGREGATE OF POLICY FUND BALANCES AMOUNTED TO $15,902 MILLION.

THE 1992 ANNUAL REPORT OF THE OFFICE OF THE COMMISSIONER OF INSURANCE, AT $36 A COPY, IS NOV. ON SALE AT THE GOVERNMENT PUBLICATIONS CENTRE AT CONNAUGHT PLACE, CENTRAL, HONG KONG.

-----0------

/14.........

TUESDAY, MARCH 16, 1993

- 14 -

ANTI-POLLUTION PROSECUTION FIGURE RELEASED *****

THE ENVIRONMENTAL PROTECTION DEPARTMENT ( EPI)) TODAY (TUESDAY) RELEASED A LIST OF COMPANIES THAT HAVE BEEN FOUND GUILTY IN THE COURTS DURING FEBRUARY OF BREACHING ANT I-POLLUTION LEGISLATION, CURRENTLY ENFORCED BY THE DEPARTMENT.

SIMILAR ANNOUNCEMENTS WILL BE MADE REGULARLY ON A MONTHLY BASIS.

THE LEGAL PROCEEDINGS COULD BE VERY TIME-CONSUMING AND AS A RESULT THERE WAS SOMETIMES A LENGTHY TIME GAP BETWEEN THE DATE OF THE OFFENCE AND THE CONVICTION DATE.

THE FOLLOWING IS THE LIST OF PROSECUTION CASES AND THE ASSOCIATED FINES IMPOSED BY THE COURTS IN FEBRUARY THIS YEAR:

NAME (COMPANY/ PERSON) ADDRESS DATE OF OFFENCE NATURE OF OFFENCE FINES($) RECORD OF OFFENCE COURT

1.ETERNITY INVESTMENT LTD FUNG YIP STREET, CHAI WAN 1.5.91- 30.5.91 APCO : UNAUTHORISED INSTALLATION OR ALTERATION OF FURNACES 5,000 1ST TSUEN WAN

2.GAINVIEW DEVELOPMENT LTD JOHNSTON RD, WAN CHAI 1.9.91- 30.9.91 APCO : 1,500 1ST EASTERN

3.DYNAJOY DEVELOPMENT LTD PAT TIN PA STREET, TSUEN WAN 7.10.91- 8.10.9! APCO : 3,500 1ST TSUEN WAN

4.WORLD PROFIT DEVELOPMENT LTD WING MING STREET, CHEUNG SHA WAN 9.1.92- 4.8.92 APCO : 2,500 1ST NORTH KOWLOON

5.BEGIN LUCK LTD QUEEN’S RD CENTRAL, CENTRAL 30.3.92- 10.6.92 APCO : 2,500 2ND EASTERN

6.SONOPRESS PAN ASIA LTD LOCKHART RD, WAN CHAI 18.5.92- 3.6.92 APCO : UNAUTHORISED INSTALLATION OR ALTERATION OF CHIMNEY 2,300 1ST SHA TIN

7 .CHIU SUNG-YAN AREA 103, MA ON SHAN 31.5.92 NCO : PERMIT 2,000 1ST SHATIN

CONSTRUCTION

WORK WITHOUT A VALID PERMIT

/8.GOOD YEAR .......

TUESDAY, MARCH 16, 1993

8.GOOD YEAR NGA TSIN 23.6.92 NCO : 25,000 4 TH SAN PO

RESTAURANT LTD WAI RD, KOWLOON CITY FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE KONG

9.MANLOZE LTD HARBOUR RD, WAN CHAI 15.7.92 APCO : 3,000 UNAUTHORISED INSTALLATION OR ALTERATION OF CHIMNEY 1ST EASTERN

10.TSANG KI LARCH 24.7.92 STREET, TAI KOK TSUI NCO : 2,000 FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE 2ND NORTH KOWLOON

11.LUEN HOP (SCORE HILL) DYEING FTY LTD KAM TIN, YUEN LONG 27.7.92 WPCO : 10,000 DISCHARGED POLLUTING MATTER IN THE DEEP BAY WATER CONTROL ZONE 1ST FANLING

12.WAYSENG INDUSTRIES LTD WANG LOK ST, YUEN LONG INDUSTRIAL ESTATE 29.7.92 WPCO : 20,000 1ST fi

13.TA I HING FOOD FTY FAN KAM RD, YUEN LONG 5.8.92 WPCO : 7,500 1ST •»

14.NAM HING CIRCUIT BOARD COMPANY LTD FUNG KAT HEUNG, YUEN LONG 24.8.92 WPCO : 5,000 1ST it

15.PAK SHUN RESTAURANT CHUNG ON ST, TSUEN WAN 26.8.92 APCO : 5,000 EXCESSIVE DARK SMOKE EM ISS1 ON 1ST TSUEN WAN

16.KONG LEE HO SHARK’S FIN & SEA PRODUCT YING PUN TSUEN, SHEUNG SHU I 1.9.92 WPCO : 5,000 DISCHARGED POLLUTING MATTER IN THE 1ST FANLING

DEEP BAY WATER CONTROL ZONE

/17.TELLY .......

TUESDAY, MARCH 16, 1993

16

17.TELLY WEAVING & DYEING FACTORY LTD KIU TAU WAI , YUEN LONG 9.9.92 NCO : 7,000 FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE 2ND FANLING

18.REGENT SMART LTD SAI YU STREET, YUEN LONG 9.9.92 NCO : 10,000 2ND •f

19.MEI PAN DYEING FTY LTD TAI YUEN ST, KWAI CHUNG 9.9.92 APCO : 8,000 EXCESSIVE DARK SMOKE EMISSION 3RD TSUEN WAN

20.TSANG YIU-TANG OF FAT KEE SOYA BEAN PRODUCTS CAPE D’AGUI LAR RD, SHEK 0 10.9.92 WPCO : 20,000 DISCHARGED POLLUTING MATTER IN THE SOUTHERN WATER CONTROL ZONE 2ND EASTERN

21.WONG YIU-LUNG OF LUEN HING BEAN PRODUCT FACTORY i. 10.9.92 WPCO : " 25,000 3RD if

22. SUN LUEN BEAN CURD FACTORY SHEUNG TSUEN, YUEN LONG 10.9.92 WPCO : 10,000 DISCHARGED POLLUTING MATTER IN THE DEEP BAY WATER CONTROL ZONE 2ND FANLING

23.WAH HING DYEING FTY LTD FUNG KAT HEUNG, YUEN LONG 14.9.92 WPCO : 5,000 3RD ti

24.CHAN KAM-HUNG SHU KUK STREET, NORTH POINT 17.9.92 NCO : 3,000 FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE 1ST EASTERN

25.CHEUNG SHU-CHIU KIMBERLEY RD, 23.9.92 NCO : 10,000 1ST SOUTH KOWLOON

TSIM SHA TSUI

26.WONG 23.9.92 NCO : 5,000 1ST ti

LEE-CHUNG

/27.YU KAM .......

TUESDAY, MARCH 16, 1993

27.YU KAM-FAI 23.9.93 NCO : " 5,000 1ST ,,

28.THE WALTON INCORPORATED ESTATE, OWNERS OF CHAI WAN WALTON ESTATE 25.9.92 NCO : 25,000 2ND EASTERN

29.SIU CHI- SAN YICK KEUNG AS LANE, YICK FUNG TUEN MUN DYEING & BLEACHING FACTORY 6.10.92 WPCO : 10,000 DISCHARGED POLLUTING MATTER IN THE NORTH WESTERN WATER CONTROL ZONE 1ST TUEN MUN

30.LEE TAI TSTNG Y1 BLEACHING & INDUSTRIAL DYEING FTY CENTRE, LTD TSING YI 21.10.92 APCO : 10,000 EXCESSIVE DARK SMOKE EMISSION 2ND TSUEN WAN

31.CHOSERISE SHAU KEI LTD WAN RD, SHAU KEI WAN 21.10.92 NCO : 15,000 FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE 2ND EASTERN

32.THE DUKE ST, 3.11.92 INCORPORATED KOWLOON TONG OWNERS OF IMPERIAL GARDEN NCO : ’’ 25,000 1ST SAN PO KONG

33.LICK SANG WANG LUNG KNITTING & ST, DYEING FTY TSUEN WAN 10.11.92 APCO : 15,000 EXCESSIVE DARK SMOKE EMISSION 3RD TSUEN WAN

34.LEE HUNG- KING’S RD, KWAN NORTH POINT 13.11.92 NCO : 5,000 FAILURE TO COMPLY WITH THE REQUIREMENT IN A NOISE ABATEMENT NOTICE 1ST EASTERN

35.KWOK SHUN-FAI 13.11.92 NCO : 5,000 1ST ft

36.CHIU TUNG ELECTRIC CHUEN LTD RD, NORTH POINT 19.11.92 NCO : 3,000 1ST EASTERN

/37.KONG FUNG

TUESDAY, MARCH 16, 1993

18 -

37.KONG FUNG KWUN TEI, 23.11.92 APCO : 5,000

IRON & STEEL FANLING EXCESSIVE DARK

FTY LTD SMOKE EMISSION

1ST FANLING

NOTE :

APCO : AIR POLLUTION CONTROL ORDINANCE

NCO : NOISE CONTROL ORDINANCE

WPCO : WATER POLLUTION CONTROL ORDINANCE

AN EPD SPOKESMAN SAID TWO PERSONS UERE PROSECUTED BY THE POLICE FOR CAUSING EXCESSIVE NOISE FROM DOMESTIC PLACE AT NIGHT. EACH OF THEM WAS FINED $600 IN COURT.

NOTE TO EDITORS :

ENQUIRIES ON SPECIFIC CASES CAN BE DIRECTED TO THE PRINCIPAL ENVIRONMENTAL PROTECTION OFFICERS :

FOLLOWING

APCO MR FRANKLIN CHUNG TEL 594 6200

NCO MR STEVEN HO TEL 594 6500

WPCO CASE 11,12,13, DR ELLEN CHAN TEL 417 6133

14,16,22,23,

29

CASE 20,21 MR MURRAY LUO TEL 835 1184

ENQUIRIES ON GENERAL ISSUES SHOULD BE DIRECTED TO THE

DEPARTMENT’S MEDIA RELATIONS SECTION.

-----0------

PROTECTION OVER INNER DEEP BAY PROPOSED ♦ * * * *

THE GOVERNMENT IS PROPOSING TO EXTEND PROTECTION OVER INNER DEEP BAY AS ANOTHER MEASURE TO CONSERVE IMPORTANT NATURE RESERVE IN HONG KONG.

A SPOKESMAN FOR THE AGRICULTURE AND FISHERIES DEPARTMENT (AFD) TODAY (TUESDAY) SAID: "WE PLAN TO LIST THE INNER DEEP BAY AS A RESTRICTED AREA UNDER THE SIXTH SCHEDULE OF THE WILD ANIMALS PROTECTION ORDINANCE.”

HE SAID MAI PO MARSHES AND THE ADJACENT INNER DEEP BAY WERE REGARDED AS THE MOST IMPORTANT NATURE RESERVE IN HONG KONG BECAUSE OF THE EXISTENCE OF AN EXTENSIVE MANGROVE FORMATION, A RICH DIVERSITY OF WILDLIFE AND ITS IMPORTANT ROLE AS A STOPOVER AND REFUELLING STATION FOR THOUSANDS OF MIGRATORY BIRDS.

/AT PRESENT .......

TUESDAY, MARCH 16, 1993

19

AT PRESENT, MAI PO MARSHES HAVE BEEN DESIGNATED AS A RESTRICTED AREA UNDER THE WILD ANIMALS PROTECTION ORDINANCE SINCE 1975 AND A NUMBER OF SHRIMP PONDS AND FACILITIES IN THE AREA ARE MANAGED BY THE WORLDWIDE FUND FOR NATURE, HONG KONG, FOR EDUCATION AND CONSERVATION PURPOSES.

IN THE PAST FEW YEARS, SOME FISHERMEN FROM THE OTHER SIDE OF THE BORDER HAVE ENTERED THE INNER DEEP BAY AREA TO COLLECT MUDSKIPPERS AND TO SET UP NETS, THUS CAUSING DISTURBANCE To THE WILDLIFE IN THE AREA AND THE ADJACENT MAI PO MARSHES.

THE GOVERNMENT THEREFORE PLANS TO GIVE ADDITIONAL PROTECTION TO THE NATURE RESERVE AND TO PROVIDE A LEGAL BASIS FOR KEEPING OUT FISHERMEN AND OTHER INTRUDERS.

WHEN THE INNER DEEP BA'j IS LISTED UNDER THE SIXTH SCHEDULE OF THE WILD ANIMALS PROTECTION ORDINANCE, A SPECIAL PERMIT ISSUED BY THE. AFD IS REQUIRED FOR ANYONE WHO WISHES TO ENTER THE AREA.

THE SPOKESMAN SAID LOCAL FARMERS WITH A RIGHT TO CULTIVATE OYSTER BEDS WITHIN THE PROPOSED RESTRICTED AREA WOULD BE ALLOWED TO CONTINUE THEIR OYSTER CULTIVATION.

HE ADDED THAT THE PROPOSED LISTING WOULD NOT ENCROACH UPON THE NAVIGATION CHANNEL IN INNER DEEP BAY AND THUS TRAFFIC ALONG SHAM CHUN RIVER SHOULD NOT BE DISTURBED.

ENVIRONMENTAL GROUPS, THE HEUNG YEE KUK AND YUEN LONG DISTRICT BOARD WOULD BE CONSULTED ON THE PROPOSED EXTENSION.

MEMBERS OF THE PUBLIC WHO WISH TO COMMENT ON THE PROPOSAL CAN SEND IN THEIR VIEWS TO THE AGRICULTURE AND FISHERIES DEPARTMENT.

---------0------------

TOGETHERNESS DAY TO PROMOTE WELLBEING OF DISABLED

*****

THE REHABILITATION DEVELOPMENT CO-ORDINATING COMMITTEE (RDCC) ENDORSED AT ITS MEETING TODAY (TUESDAY) THE STEPPING UP OF PUBLICITY AND PUBLIC EDUCATION ACTIVITIES INVOLVING PUBLIC PARTICIPATION IN ORDER TO REMOVE PREJUDICE AGAINST DISABLED PERSONS.

COMMISSIONER FOR REHABILITATION, MR ALLAN CHOW, BRIEFED MEMBERS ABOUT A TOGETHERNESS DAY TO BE HELD IN APRIL AS A PRELUDE TO A SERIES OF PUBLIC EDUCATION ACTIVITIES FOR 1993/94.

THE GENERAL PUBLIC AND VARIOUS GOVERNMENT DEPARTMENTS WOULD JOIN HANDS TO PROMOTE THE MESSAGE FROM MOTHER TERESA - "TO LOVE THE VULNERABLE, TO SERVE THEM AND TO BE TOGETHER WITH THEM".

”WE SHOULD ALL SUPPORT THE GOVERNMENT’S BASIC PRINCIPLE OF INTEGRATION AND HELP TO PROMOTE THE WELLBEING OF DISABLED PEOPLE," SAID RDCC CHAIRMAN, DR RAYMOND WU.

/RDCC MEMBERS .......

TUESDAY, MARCH 16, 1993

- 20 -

RDCC MEMBERS ALSO ENDORSED THE NEED FOR THE PUBLICATION OF A WHITE PAPER ON REHABILITATION BY THE END OF 1993.

’’THE DOCUMENT CONSISTS OF A LOT OF CONCEPTS ON REHABILITATION AND IS A GUIDE FOR THE FULL 10 YEARS IN THE FIELD,” HE SAID.

DR WU ADDED THAT THE GREEN PAPER ON REHABILITATION WAS ONLY A CONSULTATIVE PAPER WHILE THE WHITE PAPER SET OUT THE GOVERNMENT’S COMMITTED POLICY ON REHABILITATION.

MEMBERS ALSO DECIDED TO DROP THE IDEA OF THE BOUGHT-PLACE SCHEME FOR THE SEVERELY MENTALLY HANDICAPPED PERSONS IN NEED OF HOSTEL/CARE AND ATTENTION SERVICE.

"OPERATORS OF SUCH HOSTELS WOULD UNLIKELY BE INTERESTED TO IMPROVE THEIR HOMES’ STANDARDS JUST TO TAKE IN A FEW SEVERELY MENTALLY HANDICAPPED PERSONS WHO WOULD EVENTUALLY MOVE TO SUBVENTED HOSTELS IN A FEW YEARS’ TIME WHEN THE SHORTFALLS WILL GRADUALLY BE MET," DR WU SAID.

-----0--------

SYMPATHY TO FAMILIES OF SEA VICTIMS

*****

THE DIRECTOR OF MARINE, MR TONY MILLER, TODAY (TUESDAY) EXPRESSED HIS SYMPATHY FOR THE FAMILIES OF 29 HONG KONG MERCHANT NAVY OFFICERS AND SEAMEN SERVING ON BOARD THE LIBERIAN REGISTERED BULK CARRIER "GOLD BOND CONVEYOR”.

THE SHIP WITH A GROSS REGISTERED TONNAGE OF 14,941 SANK ABOUT 110 MILES SOUTH OF CAPE SABLE, NOVA SCOTIA, CANADA IN STORMY WEATHER SHORTLY AFTER MID-NIGHT YESTERDAY (MONDAY).

SHE HAD A CREW OF 33 AND 32 OF THEM ARE STILL UNACCOUNTED FOR. A BODY WAS RECOVERED FROM THE SCENE.

MR MILLER SAID: ”1 SHOULD LIKE TO ASSURE THE FAMILIES DURING THEIR ANXIOUS WAIT FOR NEWS THAT THE MARINE DEPARTMENT HAS MADE AND WOULD CONTINUE TO MAKE EVERY ENDEAVOUR TO OBTAIN ACCURATE INFORMATION ON THE FATE OF THE HONG KONG CREW MEMBERS."

THE MARINE DEPARTMENT HAS BEEN IN CONTACT WITH THE CANADIAN COAST GUARD, WHO ARE RESPONSIBLE FOR THE SEARCH AND RESCUE OPERATION, AND THE HONG KONG AGENTS OF "GOLD BOND CONVEYOR", FOR THE LATEST INFORMATION ON THE INCIDENT.

THE MARINE DEPARTMENT WILL ALSO APPROACH THE LIBERIAN AUTHORITIES TO REQUEST ANY INQUIRY REPORTS WHEN THEY ARE AVAILABLE.

THE CREW COMPRISE EIGHT OFFICERS AND 21 SEAMEN FROM HONG KONG, THREE FROM CHINA AND ONE FROM TAIWAN.

--------0-----------

/21 ........

TUESDAY, MARCH 16, 1993

- 21 -

CJ TO PAY TRIBUTE TO FORMER QC

*****

THE CHIEF JUSTICE, SIR TI LIANG YANG, WILL PAY TRIBUTE TO THE LATE MR SAM G1TTINS, A FORMER HONG KONG QUEEN’S COUNSEL, AT 9.15 AM ON THURSDAY (MARCH 18) IN COURT NO. 1, SUPREME COURT.

MR GITTINS DIED IN MELBOURNE, AUSTRALIA, ON MARCH 2.

VICE-PRESIDENT OF COURT OF APPEAL, MR JUSTICE SILKE, HIGH COURT JUDGE MR JUSTICE LIU, DISTRICT JUDGE EVANS AND CHIEF MAGISTRATE MR G P MUTTRIE WILL SIT ON THE BENCH WITH THE CHIEF JUSTICE DURING THE CEREMONY.

--------0 -

MORE VIETNAMESE GO HOME *****

A GROUP OF 266 VIETNAMESE MIGRANTS TODAY (TUESDAY) RETURNED TO VIETNAM UNDER THE UNHCR’S VOLUNTARY REPATRIATION PROGRAMME.

COMPRISING 90 MEN, 68 WOMEN, 44 BOYS AND 64 GIRLS, THEY WERE THE 145TH BATCH TO GO BACK UNDER THE PROGRAMME.

THE GROUP BRINGS TO 973 THE TOTAL NUMBER OF VIETNAMESE MIGRANTS WHO HAVE RETURNED VOLUNTARILY THIS YEAR, AND TO 27,285 THE TOTAL NUMBER OF RETURNEES SINCE THE PROGRAMME STARTED IN MARCH 1989.

-----0------

DTC REGISTRATION REVOKED

*****

THE COMMISSIONER OF BANKING ANNOUNCED THAT THE REGISTRATION OF TAP LEE FINANCE (HK) LIMITED AS A DEPOSIT-TAKING COMPANY HAD BEEN REVOKED Al I HE CLOSE OF BUSINESS TODAY (TUESDAY) AT ITS OWN REQUEST UNDER SECTION 31(2) OF THE BANKING ORDINANCE.

THE REQUEST FOR VOLUNTARY REVOCATION FOLLOWS THE GRANTING OF A RESTRICTED BANK LICENCE TO TAT LEE BANK ON JULY 10 LAST YEAR.

----0------

/22 ........

TUESDAY, MARCH 16, 1993

- 22

HONG KONG GOVERNMENT EXCHANGE FUND

TENDER RESULTS *****

TENDER DATE 16 MAR 93 16 MAR 93

PAPER ON OFFER EF BILLS EF BILLS

ISSUE NUMBER Q31 1 H360

AMOUNT APPLIED HK$3,128 MN HK$1,470 MN

AMOUNT ALLOTTED HK$1,000 MN HKS400 MN

AVERAGE YIELD ACCEPTED 2.98 PCT 3.18 PCT

HIGHEST YIELD ACCEPTED 2.99 PCT 3.18 PCT

PRO RATA RATIO ABOUT 29 PCT ABOUT 95 PCT

AVERAGE TENDER YIELD 3.00 PCT 3.23 PCT

HONG KONG GOVERNMENT EXCHANGE FUND

TENDERS TO BE HELD IN THE WEEK BEGINNING 22 MARCH 1993 -

TENDER DATE 23 MAR 93 23 MAR 93

PAPER ON OFFER EF RILLS EF BILLS

ISSUE NUMBER Q312 Y387

ISSUE DATE 24 MAR 93 24 MAR 93

MATURITY DATE 23 JUNE 93 23 MAR 94

TENOR 91 DAYS 364 DAYS

AMOUNT ON OFFER HK$1,000 + 200 MN HK$200 + 60 MN

-----0------

/23 ........

TUESDAY, MARCH 16, 1993

- 23 -

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

* * * * *

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,490

REVERSAL OF LAF +660

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECT1ON/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -810

CLOSING BALANCE IN THE ACCOUNT 1,340

LAF RATE 2.00 BID/4.00 OFFER TWI 114.1 *-0.1* 16.3.93

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YII 2LD TERM ISSUE COUPON PR 1 CE YIELD

1 WEEK 2.33 PCT 14 MONTHS 2405 5.50 102.21 3.59

1 MONTH 2.74 PCT 17 MONTHS 2408 5.50 101.02 3.67

3 MONTHS 2.99 PCT 20 MONTHS 24 1 1 4.37 5 101.36 3.81

6 MONTHS 3.20 PCT 23 MONTHS 2502 4.625 101.41 4.02

12 MONTHS 3.44 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 17.007MN

CLOSED 16 MARCH 1993

--------0

Received by PRO nn 1 9 MAR 1993

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

WEDNESDAY, MARCH 17, 1993

CONTENTS PAGE NO.

GOVERNOR TO STUDY MR LU PING'S STATEMENT .................... 1

GOVERNOR PLANS TO VISIT U.S.................................. 2

GOVERNOR TOURS CENTRAL AND WESTERN .......................... 3

FREEDOM OF THE PRESS IS SECURE .............................. 3

CLARIFICATION ON CIVIL SERVICE WASTAGE, RETIREMENT AND PENSIONS .................................................... 5

MORE TRANSPORT IMPROVEMENTS ON THE WAY ...................... 7

SWD BUDGET ON RISE .......................................... 9

VIEWS SOUGHT ON PROPOSALS FOR PROTECTION OF PERSONAL DATA .. 11

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

13

WEDNESDAY, MARCH 17, 1993

1

GOVERNOR TO STUDY MR LU PING’S STATEMENT

*****

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, SAID THIS (WEDNESDAY) AFTERNOON THAT HE WOULD STUDY CAREFULLY WHAT THE DIRECTOR OF HONG KONG AND MACAO OFFICE OF CHINA’S STATE COUNCIL, MR LU PING, HAD SAID BEFORE RESPONDING BECAUSE IT WAS OBVIOUSLY A STATEMENT WHICH DESERVED TO BE TREATED IN A SERIOUS WAY.

SPEAKING TO REPORTERS AFTER VISITING THE CENTRAL AND WESTERN DISTRICT, THE GOVERNOR SAID HE HAD SAID AGAIN AND AGAIN THAT HONG KONG WOULD BE VERY HAPPY TO HAVE TALKS WITHOUT PRECONDITION AT ANY TIME.

’’AND WE SAID THAT AGAIN BOTH IN A COMMUNICATION FROM ME AND IN A COMMUNICATION FROM THE BRITISH FOREIGN SECRETARY WHEN AT THE BEGINNING OF FEBRUARY, WE HANDED OVER TO CHINESE OFFICIALS A COPY OF THE BILL ON POLITICAL DEVELOPMENT WHICH HAS BEEN ENDORSED BY THE EXECUTIVE COUNCIL,” HE SAID.

"WE WERE VERY HAPPY WHEN IN RESPONSE TO THAT MESSAGE, WE HAD A MESSAGE IN REPLY, SAYING THE CHINESE SIDE WOULD NOW HAVE DISCUSSIONS.

"I AM SORRY THAT WE HAVEN’T MADE A PROGRESS IN STARTING THOSE DISCUSSIONS. WE AVOIDED, WE DELAYED GAZETTING THE BILL FOR FRIDAY AFTER FRIDAY.

’’BUT, AT THE END OF LAST WEEK, RATHER THAN THE GAP BETWEEN THE SIDES NARROWING, THE GAP WAS GETTING BIGGER AND WAS GETTING BIGGER FOR ONE REASON WHICH IS, I THINK, WHOLLY NEW IN DISCUSSIONS CERTAINLY OVER THE LAST DECADE BETWEEN BRITAIN AND CHINA.

’’WHAT WAS THE POINT WHICH MEANT THAT THE GAP WAS GETTING WIDER IS BEING MADE CLEAR, UNEQUIVOCALLY CLEAR, BY CHINESE OFFICIALS OVER THE LAST FEW DAYS.

’’THE NONA SAID CLEARLY THAT HONG KONG GOVERNMENT OFFICIALS HAD NO RIGHT TO A PLACE IN THE TEAM REPRESENTING BRITAIN AT TALKS. THE FOREIGN OFFICE SPOKESMAN OF CHINA SAID THAT THE PEOPLE OF HONG KONG COULD NOT HAVE OFFICIALS AT THE TALKS TALKING.”

THE GOVERNOR SAID THIS WAS A TOTALLY DIFFERENT BASIS FROM THE DISCUSSIONS THAT HAD TAKEN PLACE OVER THE LAST 10 YEARS.

”1 THINK THERE WILL BE MANY PEOPLE WHO WILL WANT TO ASK THE QUESTION WHY WAS THIS NEW PRECONDITION SUDDENLY INTRODUCED," HE SAID.

"IT DOESN’T APPLY IN THE JOINT LIAISON GROUP. IT HASN’T APPLIED IN DISCUSSIONS IN THE PAST ON THE JOINT DECLARATION.

"I SET OUT LAST FRIDAY THAT WE WOULD BE HAPPY TO TALK ON THE BASIS ARGUED FOR, INSISTED ON BY CHINA THAT THE TALKS SHOULD BE TO CONSIDER MATTERS ON THE BASTS OF THE JOINT DECLARATION, CONVERGENCE WITH THE BASIC LAW AND THE RELEVANT UNDERSTANDINGS AND AGREEMENTS BETWEEN THE TWO SIDES."

/THE GOVERNOR .......

WEDNESDAY, MARCH 17, 1993

2

THE GOVERNOR SAID HE STILL HAD TO HEAR WHAT WAS UNREASONABLE ABOUT THAT PROPOSAL WHICH WAS ENTIRELY IN ACCORDANCE WITH THE WAY THAT THINGS WERE DISCUSSED IN THE LAST 10 YEARS.

"SO, THAT IS OUR POSITION. WE’LL START TALKS TOMORROW IF CHINESE OFFICIALS WOULD LIKE BUT, PERHAPS, THEY CAN LET US KNOW WHAT IS WRONG WITH THE BASIS WHICH I’VE JUST SET OUT," THE GOVERNOR ADDED.

WHEN ASKED TO COMMENT ON THE REMARK ABOUT SETTING UP A SHADOW GOVERNMENT, MR PATTEN SAID: "IF, BY THIS AFTERNOON’S STATEMENT, IT’S MEANT THAT WE ARE GOING TO HEAR CHINESE PROPOSALS ON THE ELECTORAL ARRANGEMENTS FOR DISTRICT BOARDS AND FOR THE LEGISLATIVE COUNCIL AND THAT WILL BE A VERY WELCOME BREAKTHROUGH.

"IT WILL BE QUITE HELPFUL IF WE COULD HAVE POSITIVE PROPOSALS WHICH THE COMMUNITY COULD THEN LOOK AT AND WHICH WE COULD THEN DISCUSS."

ASKED IF THE BRITISH PRIME MINISTER HAD PROPOSED A SPECIAL ENVOY TO RE-START TALKS, THE GOVERNOR SAID: "THE POSITION OF THE BRITISH GOVERNMENT WAS SET OUT BY DOUGLAS HURD IN THE HOUSE OF COMMONS IN LONDON ON MONDAY. BOTH THE PRIME MINISTER AND THE FOREIGN SECRETARY HAVE MADE IT CLEAR THAT IN ANY BRITISH TEAM, THERE WILL BE OFFICIALS OF THE HONG KONG GOVERNMENT."

"THE POSITION OF THE BRITISH GOVERNMENT IS EXACTLY THE SAME AS THE POSITION OF THE GOVERNOR OF HONG KONG."

------0--------

GOVERNOR PLANS TO VISIT U.S. t ♦ ♦ t *

ASKED ABOUT A REPORT CONCERNING THE GOVERNOR’S PLAN TO VISIT THE UNITED STATES, A GOVERNMENT SPOKESMAN SAID:

"THE GOVERNOR IS PLANNING TO LATE APRIL/EARLY MAY BUT DETAILS OF FINALISED.

"THE MAIN PURPOSE OF THE VISIT UNCONDITIONAL RENEWAL OF CHINA’S MEN AGAINST LINKING TRADE AND POLITICAL RENEWAL."

VISIT THE UNITED STATES IN

THE PROGRAMME ARE STILL TO BE

WILL BE TO ARGUE THE CASE FOR STATUS AND TO FURTHER ARGUE ISSUES IN THE CONTEXT OF MFN

--------0-----------

/3 .........

WEDNESDAY, MARCH 17, 1993

3

GOVERNOR TOURS CENTRAL AND WESTERN

♦ * * * ♦

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, VISITED THE CENTRAL AND WESTERN DISTRICT TODAY (WEDNESDAY).

THE GOVERNOR FIRST INSPECTED A SECTION OF THE HILLSIDE ESCALATOR LINK PROJECT ALONG COCHRANE STREET AND WAS BRIEFED BY THE REGIONAL HIGHWAYS ENGINEER, MR W L WONG.

THE LINK, WITH A LENGTH OF ABOUT 800 METRES AND A HEIGHT OF ABOUT 135 METRES IS EXPECTED TO BE COMPLETED BY AUTUMN THIS YEAR.

THE INNOVATIVE PROJECT IS INTENDED TO HELP RELIEVE TRAFFIC CONGESTION IN THE MID-LEVELS.

THE GOVERNOR THEN VISITED A NURSERY RUN BY THE CHIU YANG RESIDENTS’ ASSOCIATION OF HONG KONG WHERE HE WATCHED CHILDREN AT PLAY.

HE ALSO TOURED THE "HAM YUE LAAN" - SALT FISH ROW - WHICH IS LOCATED ALONG A SECTION OF DES VOEUX ROAD WEST.

BEFORE CONCLUDING HIS VISIT, MR PATTEN ATTENDED A COMMUNITY RECEPTION WHERE HE MET DISTRICT BOARD MEMBERS AND COMMUNITY LEADERS.

THE GOVERNOR WAS ACCOMPANIED ON THE VISIT BY THE REGIONAL SECRETARY (HONG KONG AND KOWLOON), MR PAUL WONG; CENTRAL AND WESTERN DISTRICT OFFICER, MR HERMAN CHO AND DISTRICT BOARD CHAIRMAN, MR AMBROSE LAU.

-----0--------

FREEDOM OF THE PRESS IS SECURE

*****

FREEDOM OF THE PRESS IS SECURE UNDER HONG KONG LAW, ACCORDING TO THE FINDINGS OF A REVIEW BY THE ADMINISTRATION.

THIS WAS STATED TODAY (WEDNESDAY) BY A GOVERNMENT SPOKESMAN WHEN OUTLINING THE RECOMMENDATIONS OF THE REVIEW CARRIED OUT BY THE OFFICE OF THE CHIEF SECRETARY.

THE SPOKESMAN SAID THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, HAD SAID IN HIS POLICY ADDRESS LAST OCTOBER THAT THE GOVERNMENT WOULD REVIEW LAWS WHICH MIGHT INFRINGE PRESS FREEDOM AND LOOK AGAIN AT WHAT MIGHT BE DONE TO EXTEND ACCESS TO OFFICIAL INFORMATION.

THE SPOKESMAN POINTED OUT THAT THE REVIEW EXAMINED THOSE HONG KONG LAWS WHICH WERE ALLEGED TO THREATEN PRESS FREEDOM IN THE LIGHT OF THE BILL OF RIGHTS ORDINANCE. IT CONCLUDED THAT PRESS FREEDOM IS SECURE UNDER HONG KONG LAW.

/’’HOWEVER, WE .........

WEDNESDAY, MARCH 17, 1993

4

’’HOWEVER, WE HAVE FOUND THAT A NUMBER OF PROVISIONS ARE EITHER OBSOLETE OR SEEM TO BE AT ODDS WITH THE BILL OF RIGHTS ORDINANCE AND WE WILL PROPOSE THAT THEY BE REPEALED OR AMENDED AS SOON AS THE LEGISLATIVE PROGRAMME ALLOWS,” THE SPOKESMAN SAID.

"FOR EXAMPLE, UNDER PRISON RULES OF THE PRISON ORDINANCE, CAP. 234, IT IS A DISCIPLINARY OFFENCE FOR A CORRECTIONAL SERVICES OFFICER TO COMMUNICATE TO THE PRESS WITHOUT PROPER AUTHORITY ANY INFORMATION. WE PROPOSE TO REPEAL THIS PROVISION BECAUSE IT IS CONSIDERED INAPPROPRIATE TO SINGLE OUT DISCLOSURE TO THE PRESS,” THE SPOKESMAN EXPLAINED.

AS REGARDS ACCESS TO PERSONAL DATA, THE SPOKESMAN POINTED OUT THAT THE LAW REFORM COMMISSION’S PRIVACY SUB-COMMITTEE WAS LOOKING INTO A NUMBER OF MATTERS CONCERNING PRIVACY, INCLUDING QUESTIONS OF DATA PROTECTION AND ACCESS TO PERSONAL RECORDS AND THE SUB-COMMITTEE HAS ISSUED A CONSULTATIVE DOCUMENT FOR PUBLIC CONSULTATION.

AS AN INTERIM MEASURE NEW ARRANGEMENTS WOULD BE INTRODUCED NEXT MONTH TO ALLOW PRIVATE INDIVIDUALS TO CHECK PERSONAL DATA PROVIDED BY THEM AND HELD BY THE GOVERNMENT.

"CLEARLY WE WILL HAVE TO RETURN AGAIN TO THIS SUBJECT IN THE LIGHT OF PUBLIC COMMENT ON THE SUB-COMMITTEE’S PROPOSALS", THE SPOKESMAN ADDED.

ON THE QUESTION AS TO WHETHER LEGISLATION WAS REQUIRED TO ENSURE THE FREEDOM OF INFORMATION THE SPOKESMAN SAID IN CERAIN AREAS SUCH AS DATA PROTECTION AND ACCESS TO PERSONAL RECORDS THE LEGISLATIVE ROUTE MAY WELL BE FOLLOWED.

IN ADDITION IT WOULD BE NECESSARY FOR THE GOVERNMENT TO CONSIDER LOCALISING THE EXISTING OFFICIAL SECRETS ACTS BEFORE 1997. BUT THE GOVERNMENT WAS NOT CONVINCED THAT AN ALL EMBRACING FREEDOM OF INFORMATION ORDINANCE WAS THE BEST WAY FORWARD.

"THE REVIEW HAS ALSO IDENTIFIED CERTAIN MEASURES WHICH MAY BE IMPLEMENTED TO IMPROVE ACCESS TO OFFICIAL INFORMATION. THESE MEASURES INCLUDE THE PUBLICATION OF A DIRECTORY ON THE ORGANISATION OF THE GOVERNMENT SECRETARIAT AND ACCESS TO CLASSIFIED FILES OLDER THAN 30 YEARS", HE SAID.

INFORMATION ON GOVERNMENT ACTIVITIES IS ALREADY AVAILABLE TO THE PUBLIC IN MANY FORMS.

TO ENHANCE PUBLIC UNDERSTANDING OF HOW THE GOVERNMENT OPERATES, A DIRECTORY ON THE ORGANISATION OF BUSINESS IN THE GOVERNMENT SECRETARIAT WILL BE MADE AVAILABLE TO THE PUBLIC THROUGH THE CITY AND NEW TERRITORIES ADMINISTRATION’S PUBLIC ENQUIRY COUNTERS.

MAJOR DEPARTMENTS WHICH HAVE FREQUENT CONTACT WITH THE PUBLIC WILL PROVIDE SIMILAR DIRECTORIES AT THEIR ENQUIRY OR RECEPTION COUNTERS. i

/•'THESE DEPARTMENTS ......

WEDNESDAY, MARCH 17, 1993

5

"THESE DEPARTMENTS WOULD ALSO BE ENCOURAGED TO PUBLISH ANNUAL REPORTS TO PROMOTE PUBLIC UNDERSTANDING OF THEIR AREAS OF RESPONSIBILITIES AND WORKING PROCEDURES", THE SPOKESMAN ADDED.

ON ACCESS TO OLD RECORDS OF HISTORICAL VALUE KEPT BY THE PUBLIC RECORDS OFFICE, THE PUBLIC ARE ALREADY ALLOWED ACCESS TO UNCLASSIFIED RECORDS OLDER THAN 30 YEARS.

THE REVIEW RECOMMENDED THAT ACCESS BE EXTENDED TO CLASSIFIED RECORDS AS WELL. INFORMATION WHICH IS PARTICULARLY SENSITIVE, FOR EXAMPLE, INFORMATION WHICH IF RELEASED, WOULD AFFECT THE PERSONAL SAFETY OF INDIVIDUALS OR SECURITY MATTERS, WILL HOWEVER BE EXCLUDED.

"THIS WILL BRING US IN LINE WITH THE PRACTICE IN MOST OTHER DEVELOPED COUNTRIES," THE SPOKESMAN SAID.

- 0 -----------

CLARIFICATION ON CIVIL SERVICE WASTAGE,

RETIREMENT AND PENSIONS

******

IN RESPONSE TO PRESS ENQUIRIES ABOUT THE STATISTICS AND TRENDS IN RELATION TO CIVIL SERVICE WASTAGE, RETIREMENT AND PENSIONS, A GOVERNMENT SPOKESMAN TODAY (WEDNESDAY) ISSUED THE FOLLOWING INFORMATION:

(A) CIVIL SERVICE WASTAGE RATE

YEAR % WASTAGE

1988/89 5.9%

1989/90 5.8%

1990/91 5.2%

1991/92 4.8%

(1992/93 ESTIMATE 4.8%)

THE SPOKESMAN SAID THE WASTAGE INCLUDED ALL OFFICERS LEAVING THE CIVIL SERVICE FOR WHATEVER REASON, BUT EXCLUDED THOSE LEAVING TO JOIN THE HOSPITAL AUTHORITY AND VOCATIONAL TRAINING COUNCIL.

"THE WASTAGE SO FAR IN 1992/93 IS ABOUT THE SAME AS IN 1991/92 (4.8 PER CENT), WHICH WAS A HISTORICALLY LOW FIGURE," HE SAID.

"ABOUT ONE QUARTER (26 PER CENT) OF THE LEAVERS HAD LESS THAN TWO YEARS SERVICE WITH THE GOVERNMENT WHICH IS CALLED ’INDUCTION WASTAGE’ AND IS NORMAL IN EVERY LARGE ORGANISATION.

"THE WASTAGE AT THE DIRECTORATE AND SENIOR PROFESSIONALS LEVELS REMAINS LOW.

"THE MAJORITY OF THE LEAVERS ARE FROM THE LOWER AND MIDDLE LEVELS OF THE CIVIL SERVICE," HE ADDED.

/(B) RETIREMENT .......

WEDNESDAY, MARCH 17, 1993

6

(B) RETIREMENT

(NO. OF IN EACH OFFICERS YEAR) RETIRING

’’EARLY” (AGE RETIREMENT 45-54) 1989/90 322 1990/91 425 1991/92 542

’’NORMAL" (AGE RETIREMENT 55-60) 841 1015 1277

OTHER 109 486 448

TOTAL 1272 1926 2267

THE SPOKESMAN NOTED THAT THE NUMBER OE RETIREMENTS HAD INCREASED MAINLY BECAUSE OF HISTORICAL INCREASES IN RECRUITMENT MANY YEARS AGO WHEN THE CIVIL SERVICE WAS EXPANDING RAPIDLY IN ORDER TO COPE WITH HONG KONG’S SURGING DEVELOPMENT.

AS REGARDS EARLY RETIREMENT, THE NUMBER HAS REMAINED STABLE AS A PERCENTAGE OF TOTAL RETIREMENTS - 25 PER CENT IN 1989/90, 22 PER CENT IN 1990/91 AND 24 PER CENT IN 1991/92.

THE SPOKESMAN SAID: "WE EXPECT TOTAL RETIREMENTS TO CONTINUE TO INCREASE IN 1992/93 BASED ON FIGURES SO FAR THIS YEAR.

"THE PERCENTAGE OF EARLY RETIREMENTS WILL CONTINUE TO BE IN THE RANGE OF 20 TO 25 PER CENT."

IN RESPECT OF "OTHER" RETIREMENTS, THEY INCLUDE RETIREMENT ON ABOLITION OF OFFICE (E.G. DUE TO CLOSURE OF ABATTOIRS IN THE URBAN SERVICES DEPARTMENT IN 1990/91 AND 1991/92) AS WELL AS COMPULSORY RETIREMENTS.

THE FIGURES IN THE TABLE ABOVE EXCLUDE OFFICERS WHO RETIRED AND WERE SUBSEQUENTLY RE-EMPLOYED IN THE CIVIL SERVICE ON AGREEMENT.

(C) PENSIONS EXPENDITURE

EXPENDITURE ON PENSIONS AS REFLECTED IN THE ESTIMATES IS AS FOLLOWS:

1991/92 (ACTUAL EXPENDITURE) $3,390.9 MILLION

1992/93 (REVISED ESTIMATE) $4,457.0 MILLION

1993/94 (ESTIMATE) $4,877.3 MILLION

/THE ABOVE .......

WEDNESDAY, MARCH 17, 1993

THE ABOVE FIGURES INCLUDE PRIMARILY CIVIL SERVICE PENSION BENEFITS, PAYMENTS UNDER THE DEPENDENT PENSION BENEFIT SCHEMES AND CONTRACT GRATUITIES.

THE FIGURES HAVE INCREASED FOR TWO MAIN REASONS:

* ANNUAL PENSION INCREASES HAVE BEEN AWARDED IN RECENT YEARS IN LINE WITH INFLATION, WHICH HAS BEEN RELATIVELY HIGH; AND

t THERE HAS BEEN AN INCREASE IN THE NUMBER OF PEOPLE RETIRING DUE TO HISTORICAL TRENDS IN RECRUITMENT (SEE THE EXPLANATION GIVEN UNDER THE HEADING OF "RETIREMENT" ABOVE).

"TO OUR PROJECTIONS OF PENSIONS EXPENDITURE, THOUGH INCREASING IN CASH TERMS ANNUALLY, WILL REMAIN AT ABOUT 4-5 PER CENT OF ANNUAL OPERATING EXPENDITURE IN THE COMING YEARS UP TO 2003/4," THE SPOKESMAN SAID.

(D) NEW PENSION SCHEME

ABOUT 47,600 SERVING OFFICERS REMAIN ELIGIBLE TO OPT FOR THE NEW PENSION SCHEME BEFORE DECEMBER 31, 1995.

-----0------

MORE TRANSPORT IMPROVEMENTS ON THE WAY t * * t t

THE PUBLIC CAN EXPECT FURTHER IMPROVEMENTS IN PUBLIC TRANSPORT SERVICES IN 1993/94, AS THE MAJOR TRANSPORT OPERATORS RAISE THE QUALITY OF SERVICES AND BECOME MORE RESPONSIVE TO THE NEEDS OF THEIR CUSTOMERS.

THIS WAS STATED BY THE SECRETARY FOR TRANSPORT, MR MICHAEL LEUNG, TODAY (WEDNESDAY) IN HIS PRESENTATION OF THE DRAFT EXPENDITURE ESTIMATES IN THE TRANSPORT PROGRAMME AREA FOR 1993/94 TO THE FINANCE COMMITTEE.

MR LEUNG SAID THE TRANSFER OF 26 ROUTES FROM CHINA MOTOR BUS (CMB) TO CITYBUS IN SEPTEMBER WOULD BE CLOSELY MONITORED TO ENSURE THAT THERE WAS NO DETERIORATION IN SERVICES AND THAT THE TERMS AND CONDITIONS OF THE TWO NEW FRANCHISES FOR CITYBUS AND CMB WERE FULLY MET.

"WE WILL ALSO SEE MORE BUS ROUTES INTRODUCED IN THE YEAR WITH 24 BY KOWLOON MOTOR BUS (KMB) AND SEVEN BY CMB. IN ADDITION, 10 OR MORE NEW RESIDENTIAL COACH SERVICES ARE LIKELY TO START," HE SAID.

"FERRY SERVICES WILL ALSO BE ENHANCED WITH TWO NEW HIGH SPEED FERRIES DEPLOYED ON THE TUEN MUN - CENTRAL ROUTE THIS SEPTEMBER. A NEW ROUTE FROM SO KWUN WAT TO KOWLOON WILL BE INTRODUCED BY JUNE."

/HE SAID .......

WEDNESDAY, MARCH 17, 1993

8

HE SAID PUBLIC TRANSPORT COMMUTERS COULD ALSO EXPECT IMPROVEMENTS IN THE QUALITY OF SERVICE AS A RESULT OF THE PERFORMANCE PLEDGES TO BE MADE BY PUBLIC TRANSPORT OPERATORS AND THE ESTABLISHMENT OF BETTER PASSENGER LIAISON MACHINERY.

MR LEUNG SAID MASS TRANSIT RAILWAY CORPORATION (MTRC) HAD MADE PERFORMANCE PLEDGES ON TRAIN, TICKET AND ESCALATOR RELIABILITY AND KOWLOON-CANTON RAILWAY CORPORATION (KCRC) WOULD INTRODUCE SIMILAR PLEDGES IN MID-1993. BOTH RAILWAY CORPORATIONS WOULD FURTHER IMPROVE THEIR PASSENGER LIAISON NETWORKS IN THE COMING YEAR.

"KMB IS NOW SETTING UP PASSENGER LIAISON GROUPS AND WILL BE INTRODUCING PERFORMANCE PLEDGES LATER IN THE YEAR. BOTH FERRY COMPANIES ARE IMPROVING THEIR PASSENGER LIAISON CHANNELS AND CMB IS REQUIRED TO ESTABLISH SUCH CHANNELS UNDER THE NEW FRANCHISE IN SEPTEMBER,” HE SAID.

MORE FARE CONCESSIONS FOR THE ELDERLY WOULD BE INTRODUCED ON PUBLIC TRANSPORT AS A RESULT OF THE BUDGET PROPOSALS ON WAIVING ANNUAL LICENCE FEES AND RENTALS FOR BUS AND FERRY COMPANIES.

IN HIS PRESENTATION, MR LEUNG SAID THE GOVERNMENT WOULD SPEND ABOUT $7 BILLION ON TRANSPORT INFRASTRUCTURE IN THE NEXT FINANCIAL YEAR, INCLUDING $5.8 BILLION ON AIRPORT CORE PROGRAMME PROJECTS.

’’THIS REPRESENTS AN INCREASE OF $3 BILLION, OR 75% OVER THE REVISED EXPENDITURE IN THE CURRENT FINANCIAL YEAR. THESE FIGURES EXCLUDE THE BUDGET PROPOSALS OF $1 BILLION TO BE SPENT ON THE PROVISION OF EXTRA CLIMBING LANES ON TUEN MUN ROAD AND GOVERNMENT’S POTENTIAL CONTRIBUTION OF $4 BILLION TOWARDS THE ROUTE 3 (COUNTRY PARK SECTION),” HE SAID.

WORK IS DUE TO COMMENCE THIS FINANCIAL YEAR ON THE WEST KOWLOON EXPRESSWAY (NORTHERN SECTION) AT A COST OF $1.7 BILLION, THE RAMBLER CHANNEL BRIDGE ($0.9 BILLION), THE WEST KOWLOON CORRIDOR (YAUMATEI SECTION) ($0.5 BILLION) AND AN EXTENSION OF ROUTE 5 FROM SHEK WAI KOK TO CHAI WAN KOK ($0.5 BILLTON).

PROJECTS DUE FOR COMPLETION IN THE YEAR INCLUDED THE MID-LEVELS ESCALATOR LINKING MID-LEVELS AND CENTRAL; AND THE YUEN LONG/TUEN MUN EASTERN CORRIDOR.

ON TRAFFIC MANAGEMENT, MR LEUNG SAID THE GOVERNMENT WOULD CONTINUE TO CONDUCT DETAILED TRANSPORT STUDIES AND TO INTRODUCE MODERN TECHNOLOGY TO MAXIMISE THE USE OF AVAILABLE ROAD SPACE.

"THE AREA TRAFFIC CONTROL SYSTEM IS BEING UPGRADED AND EXTENDED, WITH THE SYSTEM IN KOWLOON TO BE REPLACED BY 1995 AT A COST OF $130 MILLION.

”A NEW SYSTEM COSTING $65 MILLION WILL BE INSTALLED AT TSUEN WAN BY THE END OF THIS YEAR, WHILE PLANNING IS ALSO IN HAND FOR THE INSTALLATION OF A SIMILAR SYSTEM IN SHA TIN,” HE SAID.

EQUAL IMPORTANCE WILL BE GIVEN TO PROMOTING ROAD SAFETY IN 1993.

/FROM JUNE ........

WEDNESDAY, MARCH 17, 1993

9

FROM JUNE 1, ALL LIGHT GOODS VEHICLES WILL BE EXAMINED ANNUALLY, WHILE THE ANNUAL INSPECTION PROGRAMME FOR MEDIUM AND HEAVY GOODS VEHICLES WILL BE STRENGTHENED TO COVER VEHICLES OF FIVE YEARS OLD INSTEAD OF SEVEN YEARS. BY 1994 ALL GOODS VEHICLES WILL BE INSPECTED ANNUALLY.

FOR LONG-TERM STRATEGIC TRANSPORT PLANNING, MR LEUNG SAID THE SECOND COMPREHENSIVE TRANSPORT STUDY UPDATE HAD BEEN SUBSTANTIALLY COMPLETED, A PUBLIC CONSULTATION EXERCISE ON THE RAILWAY DEVELOPMENT STUDY WAS ABOUT TO BEGIN AND THE FREIGHT TRANSPORT STUDY SHOULD BE COMPLETED IN THE NEXT FEW MONTHS.

----0------

SWD BUDGET ON RISE

*****

THE SOCIAL WELFARE DEPARTMENT MILLION, INCLUDING $224 MILLION FROM

PLANS TO SPEND A TOTAL OF $7,633 THE LOTTERIES FUND THIS YEAR.

THIS REPRESENTS AN INCREASE OF $578 MILLION OR 8.2 PER CENT OVER THE PROVISION FOR 1992/93.

THIS WAS STATED BY THE DIRECTOR OF SOCIAL WELFARE, MR IAN STRACHAN TODAY (WEDNESDAY) AFTER ATTENDING A SPECIAL FINANCE COMMITTEE MEETING ON THE 1993/94 DRAFT ESTIMATES.

BOTH THE QUANTITY AND THE QUALITY OF SOCIAL WELFARE SERVICES WOULD BE IMPROVED, MR STRACHAN STRESSED.

"THE SIGNIFICANT INCREASE IN FINANCIAL PROVISION IN THE SOCIAL WELFARE PROGRAMME AREA REFLECTS THE GOVERNMENT’S COMMITMENT TO FURTHER IMPROVE THE WELL-BEING OF THE PEOPLE OF HONG KONG. IN PARTICULAR, THOSE IN NEED,” HE ADDED.

MR STRACHAN SAID ADDITIONAL RESOURCES WOULD BE USED TO MEET THREE MAJOR POLICY TARGETS.

THESE INCLUDE THE KEY TARGETS SET BY THE WHITE PAPER ON SOCIAL WELFARE AS WELL AS THE GREEN PAPER ON REHABILITATION.

THE IMPLEMENTATION OF THE NEW COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME WILL ALSO TAKE UP A SIGNIFICANT EXPENDITURE BY THE SOCIAL WELFARE DEPARTMENT.

HE SAID THE MOST SIGNIFICANT IMPROVEMENT IN THE WELFARE FRONT WAS THE INTRODUCTION OF THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME, WHICH WOULD BE INTRODUCED ON JULY 1.

"THE MONTHLY PAYMENT RECEIVED BY THE CLIENTS WILL BE IMPROVED IN REAL TERMS BY BETWEEN FOUR PER CENT AND 32 PER CENT AND WILL BE OVER AND ABOVE THE REGULAR ADJUSTMENT FOR INFLATION," HE SAID, ADDING THAT MORE THAN 100,000 OF THE MORE VULNERABLE MEMBERS WILL BENEFIT FROM THE SCHEME.

/HE ALSO .......

WEDNESDAY, MARCH 17, 1993

10 -

HE ALSO NOTED THAT A VERY LARGE SHARE OF THE TOTAL BUDGET FOR SOCIAL WELFARE WILL BE SPENT ON SOCIAL SECURITY, WHICH AMOUNTS TO $4.9 BILLION, AN INCREASE OF SEVEN PER CENT OVER 1992/93 PROVISION.

THIS HAS NOT YET TAKEN INTO ACCOUNT THE EXTRA $92.7 MILLION FOR IMPROVEMENT OF PUBLIC ASSISTANCE BASIC RATE JUST APPROVED BY THE FINANCE COMMITTEE TO TAKE EFFECT ON APRIL 1.

MR STRACHAN REITERATED THE POINT EXPRESSED BY THE SECRETARY FOR HEALTH AND WELFARE IN THE MEETING THAT THE PUBLIC ASSISTANCE SCHEME MET THE BASIC NEEDS OF THE MOST VULNERABLE.

"THE SCHEME IS SUFFICIENTLY FLEXIBLE SO THE GREATER THE NEED, THE GREATER IS THE SUPPORT FROM THE GOVERNMENT," HE SAID.

HE ALSO NOTED THAT THIS CLEARLY DEMONSTRATED IN THE FACT THAT WITH EFFECT FROM JULY 1, ALTHOUGH THE ESTIMATED AVERAGE MONTHLY ASSISTANCE WOULD BE $5,880 UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME FOR A FOUR-PERSON HOUSEHOLD, 37 PER CENT COULD RECEIVE MORE THAN $6,000.

"INDEED A SMALL NUMBER OF A FOUR-PERSON HOUSEHOLD WITH SPECIAL NEEDS WILL RECEIVE MORE THAN $8,000 PER MONTH FROM JULY 1," HE ADDED.

HE SAID THE PERCENTAGE INCREASE IN THE PUBLIC ASSISTANCE SCHEME WAS MORE THAN DOUBLE THE INCREASE IN THE CONSUMER PRICE INDEX A (CPI(A)) RATE OVER THE SAME PERIOD.

"THERE HAVE BEEN REAL IMPROVEMENTS IN PUBLIC ASSISTANCE LEVEL," HE SAID.

ALTHOUGH THE DRAFT ESTIMATES FOR 1993/94 SHOWED THAT SOCIAL SECURITY WOULD INCREASE BY $328 MILLION OVER LAST YEAR’S EXPENDITURE, THE FINANCE COMMITTEE ON MARCH 5, APPROVED A FURTHER INCREASE OF $373 MILLION TO MEET THE COST OF ADJUSTING THE SOCIAL SECURITY RATES OF PAYMENTS TO MAINTAIN ITS PURCHASING POWER IN 1993.

ON THE PROVISION OF REHABILITATION SERVICES, $556.7 MILLION WILL BE SPENT NEXT YEAR.

"THE KEY TARGETS ON THE REHABILITATION FRONT ARE 3,930 ADDITIONAL RESIDENTIAL PLACES AND 3,760 ADDITIONAL DAY SERVICE PLACES TO BE PROVIDED OVER THE NEXT FOUR YEARS, AS OUTLINED IN THE GOVERNOR’S POLICY ADDRESS," HE SAID.

HE ADDED THAT THE IMPLEMENTATION PLAN FOR THESE KEY TARGETS WOULD START IN 1993/94. THERE IS AN INCREASE OF 15.7 PER CENT ($75 MILLION) EARMARKED IN THE BUDGET FOR THE EXPANSION OF SERVICES FOR THE DISABLED IN THE NEXT FINANCIAL YEAR.

"THESE EXTRA PLACES REPRESENT AN INCREASE OF 17 PER CENT OVER THE EXISTING PROVISION. WE WILL MEET THE KEY TARGETS AS QUICKLY AS WE PRACTICALLY CAN," HE ADDED.

/THERE WTIJ ........

WEDNESDAY. MARCH 17, 1993

- 11

THERF WILL ALSO BE MAJOR EXPANSION IN COMMUNITY SUPPORT AND RESIDEN^AL SERVICES FOR OLD PEOPLE. 1993/94 PROVISION WILL INCREASE BY 15 Ser CENT, BRINGING TOTAL PROVISION TO $538 MILLION.

"SPENDING ON FAMILY AND CHILD CARE WILL ALSO GO UP 10.4 PER CENT," MR STRACHAN ADDED.

--------0------------

VIEWS SOUGHT ON PROPOSALS FOR PROTECTION OF PERSONAL DATA ♦ ♦ t ♦ ♦

THE PRIVACY SUB-COMMITTEE OF THE LAW REFORM COMMISSION HAS PROPOSED THAT THE COLLECTION AND USE OF INFORMATION ABOUT INDIVIDUALS BE LEGALLY CONTROLLED.

THE SUB-COMMITTEE’S RECOMMENDATIONS ADDRESS CONCERN OVER THE INCREASING EXTENT TO WHICH PERSONAL INFORMATION IS RECORDED AND PASSED ON. THERE IS ALSO A WORLDWIDE TREND TO INTRODUCE LEGISLATIVE PROTECTION IN THIS AREA.

THE RECOMMENDATIONS, WHICH ARE CONTAINED IN A DOCUMENT PUBLISHED TODAY (WEDNESDAY) FOR A THREE-MONTH CONSULTATION, INCLUDE:

« LEGAL REGULATION SHOULD BE INTRODUCED IN BOTH THE PUBLIC AND PRIVATE SECTORS OF ALL DATA RELATING TO THE INDIVIDUAL, WHETHER FACTUAL OR JUDGMENTAL, TRUE OR FALSE, AND REGARDLESS OF HOW IT IS STORED. BOTH AUTOMATED AND NON-AUTOMATED DATA WILL BE COVERED, PROVIDED THAT THE DATA IS REASONABLY READILY RETRIEVABLE.

* ONLY PERSONAL DATA THAT IS NECESSARY FOR OR DIRECTLY RELATED TO THE FUNCTIONS OF THE DATA COLLECTOR SHOULD BE COLLECTED. TO ENSURE THAT THE COLLECTION PROCESS IS FAIR, THE INDIVIDUAL SHOULD USUALLY BE INFORMED AT THE TIME OF THE USE TO BE MADE OF THE DATA AND THE CLASSES OF PERSONS TO WHOM THE DATA WILL BE DISCLOSED.

* PERSONAL DATA SHOULD NOT BE USED OR DISCLOSED BY ORGANISATIONS FOR PURPOSES OTHER THAN THOSE SPECIFIED IN A WRITTEN DECLARATION LODGED WITH A CENTRAL AGENCY, EXCEPT WITH THE INDIVIDUAL’S CONSENT OR WHERE A STATUTORY EXCEPTION IS STIPULATED.

* LEGAL APPROVAL SHOULD BE REQUIRED FOR MATCHING DATA ON THE SAME INDIVIDUAL FROM DIFFERENT DATABASES TO IDENTIFY DISCREPANCIES.

* AN INDIVIDUAL SHOULD HAVE THE RIGHT TO OBTAIN COPIES OF, AND CORRECT, PERSONAL DATA ABOUT HIM. IN CERTAIN CIRCUMSTANCES WHEN HE HAS SUFFERED DAMAGE HE MAY BE ENTITLED TO COMPENSATION.

/* PERSONAL DATA .......

WEDNESDAY, MARCH 17, 1993

12

* PERSONAL DATA USED FOR CERTAIN PURPOSES SHOULD BE EXEMPT FROM SOME OR ALL OF THESE REQUIREMENTS. A TOTAL EXEMPTION IS RECOMMENDED FOR PERSONAL DATA USED BY AN INDIVIDUAL SOLELY FOR PERSONAL OR DOMESTIC PURPOSES. PARTIAL EXEMPTIONS ARE RECOMMENDED FOR DATA PURPOSES SUCH AS NATIONAL SECURITY, THE DETECTION OF CRIME AND PUBLIC SAFETY.

f * A REGULATORY AGENCY SHOULD BE ESTABLISHED TO ENSURE THAT DATA USERS COMPLY WITH THE NEW LEGAL REQUIREMENTS FOR PERSONAL DATA. ITS FUNDING WOULD BE PROVIDED BY LEVYING ORGANISATIONS SEEKING BUSINESS REGISTRATION AN ANNUAL FEE NOT EXCEEDING $100.

WHILE LOCAL FIGURES ARE LACKING, IN THE UNITED STATES THERE ARE ABOUT 17 SEPARATE RECORDS ON EVERY INDIVIDUAL. DECISIONS ARE MADE ON THE BASIS OF THIS RECORDED INFORMATION AND THOSE DECISIONS MAY ADVERSELY AFFECT THE INDIVIDUAL, SUCH AS REFUSAL OF A LOAN OR EVEN UNJUSTIFIED CRIMINAL INVESTIGATION.

THE CHAIRMAN OF THE SUB-COMMITTEE, MR JUSTICE MORTIMER, POINTED OUT THAT OVERSEAS STUDIES INDICATED THAT MANY OF THE RECORDS OF PERSONAL DATA WERE INACCURATE. THE CRIMINAL HISTORY RECORDS OF ONE STATE IN THE U.S. WERE FOUND TO BE ACCURATE AND COMPLETE IN ONLY 20 PER CENT OF CASES.

MR JUSTICE MORTIMER SAID THE SUB-COMMITTEE ALSO EXPRESSED CONCERN AT MISUSE OF DATA, AND POINTED OUT THAT AN AUSTRALIAN INVESTIGATION REVEALED THE ILLICIT SALE OF COMMERCIALLY VALUABLE CONFIDENTIAL PERSONAL DATA ON A MASSIVE SCALE.

THE SUB-COMMITTEE BELIEVED THAT THERE WAS NO REASON TO SUPPOSE THAT THOSE PROBLEMS DID NOT EXIST IN HONG KONG AS THEY WOULD BE COMMON TO ALL COUNTRIES WITH ADVANCED COMPUTER AND TELECOMMUNICATIONS SYSTEMS.

TO COUNTER THESE PROBLEMS, INTERNATIONAL AGENCIES SUCH AS THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT AND THE EUROPEAN COMMUNITIES COMMISSION HAVE FORMULATED A SET OF STANDARDS TO PROTECT PERSONAL DATA.

IN ESSENCE, THESE STANDARDS AMOUNT TO A CODE OF FAIR INFORMATION PRACTICES INTENDED TO ENSURE THAT THE RIGHT INFORMATION IS PROVIDED TO THE RIGHT PERSON FOR THE RIGHT PURPOSE.

ALREADY 25 COUNTRIES HAVE ENACTED LEGISLATION TO LEGALLY ENFORCE THESE STANDARDS.

THE SUB-COMMITTEE HAS RECOMMENDED THAT HONG KONG JOIN THEIR RANKS AS SOON AS POSSIBLE IN ORDER TO PROVIDE INDIVIDUALS WITH ADEQUATE LEGAL PROTECTION IN RELATION TO COLLECTION AND USE OF DATA ABOUT THEM, AND TO ENSURE THAT HONG KONG IS NOT SHUT OUT OF THE INTERNATIONAL EXCHANGE OF PERSONAL DATA.

EXISTING LEGAL CONTROLS ARE LIMITED. THE HONG KONG BILL OF RIGHTS ORDINANCE PROVIDES SOME PROTECTION AGAINST PUBLIC SECTOR INFRINGEMENTS AND SOME ORDINANCES CONTAIN SECRECY PROVISIONS. SOME PROTECTION IS ALSO PROVIDED BY THE COMMON LAW DUTY OF CONFIDENCE, BUT THERE IS AT PRESENT NO COMPREHENSIVE LEGAL PROTECTION.

/THE EUROPEAN .......

WEDNESDAY, MARCH 17, 1993

13

THE EUROPEAN PARLIAMENT HAS AGREED THAT FROM 1994, ITS MEMBER STATES MUST CONTROL THE TRANSFER OF PERSONAL DATA TO COUNTRIES LACKING ADEQUATE LEGAL PROTECTION ON ITS USE. IF HONG KONG DOES NOT INTRODUCE THE NECESSARY LEGISLATION, THE TERRITORY’S STATUS AS AN INTERNATIONAL TRADING CENTRE COULD BE AFFECTED.

THE SUB-COMMITTEE IS INVITING PUBLIC COMMENTS ON THE PROPOSALS BEFORE FINALISING ITS RECOMMENDATIONS TO THE LAW REFORM COMMISSION. WRITTEN COMMENTS SHOULD BE SENT BY JUNE 16 THIS YEAR TO MR MARK BERTHOLD, SECRETARY OF THE SUB-COMMITTEE ON PRIVACY OF THE LAW REFORM COMMISSION, FIRST FLOOR, QUEENSWAY GOVERNMENT OFFICES, HIGH BLOCK, CENTRAL.

ATTENTION NEWS EDITORS:

THE CHAIRMAN OF THE PRIVACY SUB-COMMITTEE OF THE LAW REFORM COMMISSION, MR JUSTICE MORTIMER, WILL BE AVAILABLE TO EXPLAIN THE PROPOSED RECOMMENDATIONS TO THE NEWS MEDIA AT 3 PM TODAY (WEDNESDAY) ON THE FOURTH FLOOR, QUEENSWAY GOVERNMENT OFFICES, HIGH BLOCK, CENTRAL. COPIES OF THE REPORT AND THE SUMMARY HAVE BEEN BOXED FOR COLLECTION.

--------o-----------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,340

REVERSAL OF LAF + 810

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -720

CLOSING BALANCE IN THE ACCOUNT 1,430

LAF RATE 2.00 BID/4.00 OFFER TWI 113.9 *-0.2* 17.3.93

/HONG KONG ........

WEDNESDAY, MARCH 17, 1993

14 -

HONG

KONG GOVERNMENT EXCHANGE FUND

KONG GOVERNMENT BONDS

HONG

BILLS

EF

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.73 PCT 14 MONTHS 2405 5.50 102.07 3.71

1 MONTH 2.90 PCT 17 MONTHS 2408 5.50 100.93 3.73

3 MONTHS 2.97 PCT 20 MONTHS 2411 4.375 101.14 3.95

6 MONTHS 3.22 PCT 23 MONTHS 2502 4.625 101.15 4.16

12 MONTHS 3.51 PCT

22,102MN

TOTAL TURNOVER OF BILLS AND BONDS

CLOSED 17 MARCH 1993

--------0-----------

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

THURSDAY, MARCH 18, 1993

CONTENTS PAGE NO.

BUDGET WILL NOT EXHAUST RESERVES .............................

HK MONETARY AUTHORITY TO BE SET UP IN APRIL DRUG ABUSE PROBLEM AMONG YOUNGSTERS ON THE INCREASE KENNEDY TOWN INCINERATOR SHUTS DOWN ..........................

MRS PATTEN OPENS JEWELLERY SHOW .....................

ORDERS-ON-HAND OF MANUFACTURERS IN JANUARY ...................

STUDENTS TO JOIN IN DANCE EXTRAVAGANZA .....................

CLOSURE OF UNAUTHORISED STRUCTURE ......................

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

9

THURSDAY, MARCH 18, 1993

1

BUDGET WILL NOT EXHAUST RESERVES * * * * *

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, STRESSED TODAY (THURSDAY) THAT THE 1993 BUDGET WOULD NOT, IN ANY SENSE OF THE WORD, EXHAUST HONG KONG’S RESERVES.

IN REPLY TO QUESTIONS FROM REPORTERS, MR MACLEOD SAID THE RESERVES FORECAST FOR 1996/97 IN THIS YEAR’S BUDGET WERE UP FROM THE FORECAST LAST YEAR, FROM ABOUT $71 BILLION TO ABOUT $78 BILLION.

’’WHAT WE ARE DOING IS ACTUALLY INCREASING THE RESERVES OVER THE POSITION FORECAST LAST YEAR,” HE SAID.

MR MACLEOD SAID MANY OF THE PROJECTS ON WHICH THE GOVERNMENT WAS SPENDING MONEY WERE PROJECTS WHICH WOULD PRODUCE ECONOMIC BENEFITS FOR HONG KONG WELL BEYOND 1997.

’’THEY ARE MAJOR INVESTMENTS IN OUT FUTURE PRODUCTIVITY.”

HE ADDED THAT PROJECTS SUCH AS ROUTE 3, IMPROVEMENTS TO THE TUEN MUN HIGHWAY, AND THE EXTENSION TO THE CONVENTION AND EXHIBITION CENTRE WOULD PUT HONG KONG BEYOND 1997 IN A MUCH STRONGER ECONOMIC POSITION.

ON THE QUESTION OF WHETHER A DEFICIT BUDGET WOULD BE SOMEHOW INFLATIONARY, HE SAID THE FIRST POINT TO REMEMBER WAS IT WAS A MODERATE DEFICIT.

"A DEFICIT IS SIMPLY A TECHNICAL WAY OF DRAWING ON OUR RESERVES.

"IF WE DIDN’T RUN A DEFICIT, WE WILL NEVER DRAW ON THE RESERVES WHICH WILL SIMPLY PILE UP, AND UP AND UP.

"AND AS IMPORTANTLY, WHAT WE ARE SPENDING THE MONEY ON, IN MANY CASES, WILL IMPROVE OUR EFFICIENCY AND PRODUCTIVITY,” HE SAID.

MR MACLEOD ADDED THAT MANY OF THESE PROJECTS WERE IN THE CONSTRUCTION INDUSTRY, WHICH WAS PRESENTLY UNDER-UTILISED.

"PUSHING A BIT MORE WORK INTO THE CONSTRUCTION INDUSTRY, WHICH IS BY THE WAY ASKING FOR MORE WORK, IS ACTUALLY A RATHER SENSIBLE WAY OF SPENDING MONEY.

”WE ARE TAKING ADVANTAGE OF THE LOW TENDER PRICES AT THE MOMENT, AND THAT WILL NOT BE PARTICULARLY INFLATIONARY,” HE SAID.

0

Z2 .........

THURSDAY, MARCH 18, 1993

2

HK MONETARY AUTHORITY TO BE SET UP IN APRIL ♦ ♦ * * ♦

THE GOVERNOR HAS APPOINTED APRIL 1, 1993 AS THE DATE FOR THE EXCHANGE FUND (AMENDMENT) ORDINANCE 1992 TO COME INTO OPERATION. A COMMENCEMENT NOTICE WILL BE GAZETTED TOMORROW (FRIDAY).

THIS WILL ENABLE THE HONG KONG MONETARY AUTHORITY (HKMA) TO BE FORMALLY ESTABLISHED ON APRIL 1, 1993 UNDER THE DIRECTION OF THE FINANCIAL SECRETARY, BY MERGING THE EXISTING OFFICE OF THE EXCHANGE FUND AND THE OFFICE OF THE COMMISSIONER OF BANKING.

COMMENTING ON THIS, THE CHIEF EXECUTIVE (DESIGNATE) OF THE HONG KONG MONETARY AUTHORITY, MR JOSEPH YAM, SAID HE WAS PLEASED THAT THE PLAN, ANNOUNCED BY THE GOVERNOR LN HIS POLICY ADDRESS IN OCTOBER LAST YEAR, TO SET UP A MONETARY AUTHORITY HAD GONE SMOOTHLY.

HE FELT EXCITED TO BE GIVEN THE RESPONSIBILITY TO ASSIST THE FINANCIAL SECRETARY IN DELIVERING EXCHANGE RATE STABILITY, AND MAINTAINING THE STABILITY AND INTEGRITY OF THE MONETARY AND FINANCIAL SYSTEMS OF HONG KONG.

"WE ARE VERY MUCH AWARE OF THE IMPORTANCE OF THIS RESPONSIBILITY BECAUSE IT WOULD HAVE A DIRECT EFFECT ON THE OVERALL STABILITY AND PROSPERITY OF HONG KONG,” MR YAM SAID.

"IN ESTABLISHING THE HONG KONG MONETARY AUTHORITY, THE GOVERNMENT RECOGNISES THE NEED FOR FLEXIBILITY IN THE DEPLOYMENT OF RESOURCES FOR THIS IMPORTANT AREA OF WORK.

"IT WILL HELP US ENSURE THAT THIS WORK IS CARRIED OUT WITH THE DEGREE OF PROFESSIONALISM AND CONTINUITY NECESSARY TO COMMAND THE CONFIDENCE OF THE PUBLIC AND THE INTERNATIONAL FINANCIAL COMMUNITY,” HE ADDED.

"THE ESTABLISHMENT OF THE HONG KONG MONETARY AUTHORITY WILL ALSO GIVE US A MUCH-NEEDED INSTITUTIONAL IDENTITY FOR PURSUING HONG KONG’S INTEREST AS AN INTERNATIONAL FINANCIAL CENTRE, AND WE WILL AIM TO FURTHER OUR CONTACT AND CO-OPERATION WITH THE INTERNATIONAL CENTRAL BANKING FRATERNITY," MR YAM SAID.

"THE IMMEDIATE TASK AHEAD OF US IS TO BRING UNDER ONE ROOF THE VARIOUS DEPARTMENTS OF THE HONG KONG MONETARY AUTHORITY, WHICH ARE PRESENTLY SITUATED IN THREE SEPARATE LOCATIONS, AND A DECISION HAS BEEN TAKEN BY THE FINANCIAL SECRETARY WITH THE ADVICE OF THE EXCHANGE FUND ADVISORY COMMITTEE TO LEASE ACCOMMODATION AT 3 GARDEN ROAD, CENTRAL.

"FITTING-OUT WORKS HAVE JUST STARTED AND WE EXPECT THE NEW OFFICE PREMISES TO BE READY AROUND THE MIDDLE OF THIS YEAR," MR YAM SAID.

--------0 ----------

/3 .........

THURSDAY, MARCH 18, 1993

3

DRUG ABUSE PROBLEM AMONG YOUNGSTERS ON THE INCREASE ******

ACCORDING TO THE CENTRAL REGISTRY OF DRUG ABUSE’S STATISTICS FOR 1992, THE PROBLEM OF DRUG ABUSE AMONG YOUNGSTERS IS ON THE INCREASE.

THE STATISTICS SHOW THAT 1,386 DRUG ABUSERS AGED UNDER 21 WERE REPORTED FOR THE FIRST TIME TO THE CENTRAL REGISTRY LAST YEAR. THIS REPRESENTS AN INCREASE OF 34.6% OVER THE FIGURE OF 1,030 FOR 1991.

THE UPWARD TREND IS ALSO REFLECTED IN THE GRADUAL INCREASE IN THE PERCENTAGE OF YOUNG PERSONS AMONG THE NEWLY REPORTED CASES, FROM 30% IN 1987 TO 38.2% IN 1991 AND 47.7% IN 1992.

REGARDING THE TYPES OF DRUGS ABUSED, THE CENTRAL REGISTRY’S STATISTICS REVEAL THAT AMONG THE 995 YOUNGSTERS NEWLY REPORTED IN 1992 WITH INFORMATION ON THE TYPES OF DRUGS ABUSED, 57.5% HAD ABUSED HEROIN, 25.9% COUGH MEDICINE, 23% CANNABIS AND 2.2% ORGANIC SOLVENTS.

AS FOR THE NUMBER OF PERSONS ARRESTED FOR DRUG OFFENCES IN 1992, 1,359 WERE AGED UNDER 21, AN INCREASE OF 54.6% COMPARED WITH 1991.

OF THE 15,108 PERSONS REPORTED TO THE CENTRAL REGISTRY IN 1992, 2,904 (OR 19.2%) WERE IDENTIFIED AS NEW CASES, REPRESENTING AN INCREASE OF 7.7% OVER THE FIGURE OF 2,697 FOR 1991.

THE STATISTICS ALSO SHOW THAT AMONG THE NEWLY REPORTED PERSONS, THE AVERAGE AGE OF INITIAL DRUG ABUSE WAS 22.

HOWEVER, A GREATER PROPORTION OF THE DRUG ABUSERS HAD STARTED TO ABUSE DRUGS AT YOUNGER AGES.

IN 1992, 52.5% OF THE NEWLY REPORTED PERSONS HAD ABUSED DRUGS UNDER THE AGE OF 20; THE CORRESPONDING PROPORTION WAS 43.1% A YEAR BEFORE.

A SPOKESMAN FOR THE NARCOTICS DIVISION SAID TODAY (THURSDAY) THAT IN VIEW OF THE INCREASE TN THE ABUSE OF COUGH MEDICINE, THE GOVERNMENT HAS, SINCE JANUARY 1 THIS YEAR, PLACED THE SALE OF COUGH MEDICINE CONTAINING MORE THAN 0.1% OF CODEINE OR DEXTROMETHORPHAN UNDER STRICT CONTROL UNDER THE PHARMACY AND POISONS REGULATIONS.

THE EFFECTS OF THE NEW CONTROL AS A DETERRENT MEASURE ARE BEING MONITORED.

THE SPOKESMAN SAID YOUNGSTERS HAD BEEN IDENTIFIED AS A HIGH-RISK GROUP AND THEY REMAINED THE MAIN TARGET OF PREVENTIVE DRUG EDUCATION AND PUBLICITY PROGRAMMES.

SUBSTANTIAL EFFORTS CONTINUED TO BE DEVOTED TO REMINDING THEM OF THE DANGERS OF ABUSING DRUGS AND OTHER ADDICTIVE AND HARMFUL SUBSTANCES.

/HE SAID .......

THURSDAY, MARCH 18, 1993

HE SAID APART FROM THE REGULAR PROGRAMMES UNDERTAKEN OVER THE YEARS, INCLUDING DRUG EDUCATION TALKS GIVEN TO SECONDARY SCHOOL STUDENTS, NEW INITIATIVES HAD RECENTLY BEEN TAKEN TO REACH OUT TO YOUNGSTERS, THEIR TEACHERS AND PARENTS.

THE SPOKESMAN SAID A PILOT SCHEME ON SCHOOL TALKS TO PRIMARY 6 STUDENTS HAD JUST BEEN COMPLETED SUCCESSFULLY, AND THE FULL PROGRAMMES WOULD BE LAUNCHED IN SEPTEMBER.

SEMINARS AND WORKSHOPS WERE ORGANISED FOR SOCIAL WORKERS AND STUDENT TEACHERS AT THE COLLEGES OF EDUCATION, SO AS TO ENHANCE THEIR DRUG AWARENESS AND INFORM THEM OF THE RESOURCES AVAILABLE TO HELP YOUNGSTERS STAY AWAY FROM DRUGS, AND TO HELP THOSE WHO WERE UNFORTUNATELY VICTIMS OF DRUG ABUSE.

HE SAID PARENTS HAD AN IMPORTANT ROLE TO PLAY IN GIVING GUIDANCE TO THEIR CHILDREN.

DRUG EDUCATION TALKS WERE BEING CONDUCTED FOR PARENTS OF SECONDARY SCHOOL STUDENTS AS A PILOT SCHEME. A NEW SERIES OF ANNOUNCEMENTS IN THE PUBLIC INTEREST WOULD BE PRODUCED TO REACH OUT TO PARENTS IN PARTICULAR AND THE COMMUNITY AS A WHOLE.

THE SPOKESMAN URGED THE COMMUNITY TO JOIN IN THE FIGHT AGAINST DRUGS. A NEW, AUTOMATED TELEPHONE HOTLINE PROVIDES BASIC INFORMATION ON DRUGS AND SUBSTANCES LIABLE TO ABUSE, AND HANDLES OTHER DRUG-RELATED ENQUIRIES. THE 24-HOUR HOTLINE NUMBER IS 366 8822.

--------0------------

KENNEDY TOWN INCINERATOR SHUTS DOWN *****

A GOVERNMENT SPOKESMAN ANNOUNCED THAT THE KENNEDY TOWN INCINERATOR HAD STOPPED RECEIVING REFUSE TODAY (THURSDAY) AND THE INCINERATION OPERATION WOULD BE SHUT DOWN COMPLETELY ON MARCH 21.

THE INCINERATOR, BUILT IN 1967 WITH A DESIGN CAPACITY OF 650 TONNES A DAY, HAS BEEN A MAJOR SOURCE OF AIR POLLUTION ON THE WESTERN PART OF HONG KONG ISLAND.

THE SPOKESMAN SAID: ’’THE INCINERATION OPERATION HAS BEEN A SUBJECT OF REPEATED COMPLAINTS BY THE NEARBY RESIDENTS.

“ALTHOUGH ELECTROSTATIC PRECIPITATORS WERE ADDED TO THE INCINERATOR IN 1987 TO REMOVE THE DUST PARTICLES IN THE EMISSION, OTHER POLLUTANTS SUCH AS HYDROGEN CHLORIDE AND HYDROGEN FLUORIDE STILL COULD NOT BE REDUCED, THUS POSING HEALTH RISK TO THE NEARBY RESIDENTS.”

"IN ACCORDANCE WITH THE ’WASTE DISPOSAL PLAN FOR HONG KONG', EXISTING MUNICIPAL WASTE INCINERATORS ARE TO BE PHASED OUT AT THE EARLIEST OPPORTUNITY WHEN THE ENVIRONMENTALLY ACCEPTABLE MUNICIPAL WASTE DISPOSAL FACILITIES SUCH AS REFUSE TRANSFER STATIONS ARE AVAILABLE," THE SPOKESMAN SAID.

/HE SAID

THURSDAY. MARCH 18, 1993

HE SAID THE CLOSURE OE THE KENNEDY TOWN INCINERATOR WAS BROUGHT ABOUT BY THE SUCCESSFUL OPERATION OF THE ISLAND EAST REFUSE TRANSFER STATION WHICH WAS COMMISSIONED IN DECEMBER LAST YEAR.

’’PUBLICLY COLLECTED REFUSE CURRENTLY DELIVERED TO THE KENNEDY TOWN INCINERATOR WILL BE DIVERTED TO THE TRANSFER STATION FOR COMPACTION INTO CLOSED CONTAINERS AND THEN TRANSPORTED TO LANDFILL FOR DISPOSAL IN A FAR MORE ENVIRONMENTALLY ACCEPTABLE MANNER.”

THE SPOKESMAN SAID IN PREPARATION FOR THE CLOSURE OF THE KENNEDY TOWN INCINERATOR, THE PRIVATE WASTE COLLECTORS AND USERS CONCERNED HAD BEEN INFORMED IN JANUARY OF THE DEVELOPMENT AND ADVISED TO MAKE ARRANGEMENT FOR DELIVERY OF THE WASTE TO LANDFILLS FOR DISPOSAL ACCORDINGLY.

’’THIS INTERIM ARRANGEMENT WILL LAST UNTIL THE OPENING OF ANOTHER REFUSE TRANSFER STATION ON HONG KONG ISLAND WHICH IS EXPECTED TO BE COMMISSIONED IN 1996.

"IN ADDITION, THE EXISTING BARGING FACILITY AT THE KENNEDY TOWN WILL BE SERVED AS A BACK-UP FACILITY FOR THE TRANSFER STATION,” HE ADDED.

’’THE CLOSURE OF THE INCINERATOR WILL ELIMINATE THE PROBLEMS ASSOCIATED WITH AERIAL EMISSIONS AND BRING ABOUT IMPROVEMENT OF AIR QUALITY ON THE WESTERN PART OF HONG KONG ISLAND,” THE SPOKESMAN POINTED OUT.

’’MEANWHILE, THE ENVIRONMENTAL PROTECTION DEPARTMENT WILL CONTINUE ITS EFFORT IN CLEANING UP THE AIR IN THE AREA,” HE SAID.

UNDER THE CURRENT SCHEDULE, THE TERRITORY’S LAST LARGE-SCALE MUNICIPAL WASTE INCINERATOR AT KWAI CHUNG WILL BE PHASED OUT UPON THE OPENING OF A REFUSE TRANSFER STATION FOR THAT AREA WHICH IS EXPECTED TO BE COMMISSIONED IN LATE 1996.

--------0-----------

MRS PATTEN OPENS JEWELLERY SHOW ******

JEWELLERY PLAYS AN IMPORTANT PART IN THE LIFE OF HONG KONG, WITH OVER 11,000 CRAFTSMEN AND WORKERS EMPLOYED TN THE INDUSTRY, MRS PATTEN SAID TODAY (THURSDAY).

ADDRESSING THE OPENING CEREMONY OF THE HONG KONG INTERNATIONAI, JEWELLERY SHOW 93, MRS PATTEN SAID HONG KONG WAS AT PRESENT THE THIRD LARGEST EXPORTER OF PRECIOUS JEWELLERY IN THE WORLD AFTER ITALY AND SWITZERLAND, EXPORTING TWO-THIRDS OF SUCH PRODUCTS.

"ABOUT ONE-THIRD OF OUR EXPORTS GO TO THE USA AND THE OTHER MAJOR MARKETS ARE JAPAN AND GERMANY," SHE SAID.

APART FROM EXPORTS, DOMESTIC SALES OF JEWELLERY INCLUDING PURCHASES MADE BY VISITORS WERE ALSO FLOURISHING, MRS PATTEN ADDED.

/IT IS ........

THURSDAY. MARCH 18, 1993

6

IT IS ESTIMATED THAT THEY PURCHASED JEWELLERY WORTH AROUND HK$3.6 BILLION LAST YEAR, A BIG INCREASE ON 1991.

"I DARE SAY THAT HONG KONG PEOPLE SPENT A FEW DOLLARS EACH ON JEWELLERY LAST YEAR TOO," SHE SAID.

MRS PATTEN ALSO SAID HONG KONG'S JEWELLERY PRODUCTS WERE RENOWNED FOR THEIR DESIGN AND WORKMANSHIP.

"I UNDERSTAND THAT HONG KONG DESIGNERS HAVE, IN RECENT YEARS, WON MAJOR INTERNATIONAL AWARDS SUCH AS THE DIAMONDS-INTERNATIONAL AWARDS AND THE PRIX DE GENEVE DESIGN COMPETITION.

"I AM SURE THAT SUCH AWARDS ENCOURAGE OUR DESIGNERS TO ACHIEVE EVEN GREATER SUCCESS, AND I AM CONFIDENT THAT WITH ITS ENTERPRISING BUSINESSMEN AND SKILFUL WORKFORCE, THE HONG KONG JEWELLERY TRADE WILL CONTINUE TO FLOURISH," MRS PATTEN SAID.

-----0------

ORDERS-ON-HAND OF MANUFACTURERS IN JANUARY

******

THE VOLUME OF ORDERS-ON-HAND FOR THE 200 LARGEST MANUFACTURERS INCREASED BY 3% 1N JANUARY 1993 OVER ONE YEAR AGO, ACCORDING TO A MONTHLY SURVEY CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT.

THE VOLUME OF ORDERS-ON-HAND IS MEASURED IN TERMS OF THE NUMBER OF MONTHS THAT MANUFACTURERS WILL REQUIRE TO COMPLETE THE ORDERS OUTSTANDING AS AT THE END OF THE REFERENCE MONTH.

ORDERS IN THE PLASTIC PRODUCTS INDUSTRY INCREASED SIGNIFICANTLY BY 14% OVER THE SAME MONTH OF LAST YEAR. MODERATE INCREASES OF 9% AND 6% WERE ALSO RECORDED IN THE FABRICATED METAL PRODUCTS AND THE ELECTRICAL AND ELECTRONIC PRODUCTS INDUSTRIES RESPECTIVELY.

ON THE OTHER HANI), ORDERS DECREASED SLIGHTLY BY 2% IN THE TEXTILES INDUSTRY, BUT SHOWED LITTLE CHANGE IN THE WEARING APPAREL INDUSTRY.

COMPARED WITH THE PRECEDING MONTH, ORDERS FOR THE MANUFACTURERS SURVEYED SHOWED LITTLE CHANGE.

THE PLASTIC PRODUCTS INDUSTRY REPORTED A SIGNIFICANT INCREASE OF 15% AND THE TEXTILES INDUSTRY REPORTED A MODERATE INCREASE OF 5% OVER THE PRECEDING MONTH.

ON THE OTHER HAND, SLIGHT DECREASES OF 2% AND 1% WERE RECORDED RESPECTIVELY IN THE FABRICATED METAL PRODUCTS AND THE ELECTRICAL AND ELECTRONIC PRODUCTS INDUSTRIES.

THE WEARING APPAREL INDUSTRY REPORTED LITTLE CHANGE IN THEIR ORDERS POSITION OVER THE PRECEDING MONTH.

/THE PERCENTAGE .......

THURSDAY, MARCH 18, 1993

7

THE PERCENTAGE CHANGES IN ORDERS-ON-HAND ARE SHOWN IN THE FOLLOWING TABLE.

THE MONTHLY SURVEY OF ORDERS-ON-HAND COVERS A PANEL OF THE 200 LARGEST MANUFACTURERS CHOSEN BY REFERENCE TO THEIR EMPLOYMENT SIZES IN SEPTEMBER 1986.

A SPOKESMAN FOR THE DEPARTMENT SAID TODAY (THURSDAY) THAT AS THE SURVEY SAMPLE COVERED ONLY THE LARGE COMPANIES, THE SURVEY RESULTS MIGHT NOT BE REPRESENTATIVE OF THE GENERAL SITUATION OF THE MANUFACTURING SECTOR.

NEVERTHELESS, THE SURVEY RESULTS SHOULD BE ABLE TO PROVIDE A USEFUL INDICATION OF THE DIRECTION OF CHANGE FOR MAKING A QUICK ASSESSMENT OF SHORT-TERM DEVELOPMENTS IN THIS SECTOR.

THE SURVEY REPORT FOR JANUARY 1993 IS NOW ON SALE AT THE GOVERNMENT PUBLICATIONS CENTRE, GROUND FLOOR, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL, AND AT THE CENSUS AND STATISTICS DEPARTMENT PUBLICATIONS SALES COUNTER, 19TH FLOOR, WANCHAI TOWER, 12 HARBOUR ROAD, WAN CHAI, AT $5.50 PER COPY.

ENQUIRIES ABOUT THE SURVEY RESULTS MAY BE MADE TO THE INDUSTRIAL PRODUCTION STATISTICS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT ON TEL 805 6441.

ORDERS-ON-HAND IN MANUFACTURING INDUSTRIES

INDUSTRY AS AT THE END OF JANUARY 1993 CHANGE WHEN COMPARED WITH

DECEMBER 1992 JANUARY 1992

(MONTHS) (%) (%)

ALL MANUFACTURERS SURVEYED 4.50 * + 3

WEARING APPAREL 4.76 * *

TEXTILES 2.30 + 5 -2

PLASTIC PRODUCTS 3.26 + 15 + 14

FABRICATED METAL PRODUCTS 4.57 -2 + 9

ELECTRICAL AND ELECTRONIC

PRODUCTS 5.70 -1 + 6

OTHERS 4.03 + 2 + 2

* CHANGES WITHIN +/-0.5X

--------0-----------

/8.........

THURSDAY, MARCH 18, 1993

8 STUDENTS TO JOIN IN DANCE EXTRAVAGANZA ♦ * t * t

THE BEST DANCERS FROM AMONG MORE THAN 4,000 STUDENTS FROM 228 SCHOOLS WHO TOOK PART IN THE 29TH SCHOOLS DANCE FESTIVAL WILL PERFORM FOR THE PUBLIC AT THE END OF THIS MONTH AND IN APRIL.

THE DANCE EXTRAVAGANZA IS PART OF THE PRIZE-PRESENTATION CEREMONY AND WINNERS’ PERFORMANCES WHICH WILL BE HELD AT THE HONG KONG CULTURAL CENTRE IN TSIM SHA TSUI ON MARCH 30 AND 31, AND AT THE SHA TIN TOWN HALL AUDITORIUM ON APRIL 7, 8 AND 9.

ALL PERFORMANCES - CHINESE, ORIENTAL, MODERN AND WESTERN FOLK AND NATIONAL DANCES - WILL BEGIN AT 7.30 PM EACH EVENING.

MEMBERS OF THE PUBLIC WISHING TO ATTEND CAN OBTAIN TICKETS, AT PRICES RANGING FROM $ 10 TO $30, FROM URBTIX OUTLETS.

THE PERFORMANCES ARE PRESENTED BY THE EDUCATION DEPARTMENT, THE URBAN AND REGIONAL COUNCILS, AND THE HONG KONG SCHOOLS SPORTS COUNCIL.

AN EDUCATION DEPARTMENT SPOKESMAN SAID TODAY (THURSDAY) THAT 19 SPECIAL SCHOOLS, 84 SECONDARY SCHOOLS, AND 125 PRIMARY SCHOOLS TOOK PART IN THIS YEAR’S DANCE FESTIVAL.

HE SAID 25 SCHOOLS RECEIVED HONOURS, 122 WERE HIGHLY RECOMMENDED, 174 COMMENDED AND THREE TEAMS WERE ALSO AWARDED FOR THEIR CHOREOGRAPHY.

RESULTS OF THE DANCE FESTIVAL ARE:

PRIMARY SCHOOLS SECTION

OVERALL CHAMPION OVERALL SECOND OVERALL THIRD

: ST PAUL’S CONVENT SCHOOL PRIMARY SECTION

: YAUMATI CATHOLIC PRIMARY AM SECTION

: CHINESE INTERNATIONAL SCHOOL PRIMARY SECTION

SECONDARY SCHOOLS SECTION

OVERALL CHAMPION OVERALL SECOND OVERALL THIRD

: SKH BISHOP MOK SAU TSENG SECONDARY SCHOOL

: BISHOP HALL JUBILEE SCHOOL

: ST MARGARET’S GIRLS’ COLLEGE, KOWLOON

MOST PROGRESSIVE SCHOOL: TWGHS CHANG MING THIEN COLLEGE.

--------0

/9 .........

THURSDAY, MARCH 18, 1993

- 9

CLOSURE OF UNAUTHORISED STRUCTURE *****

THE BUILDING AUTHORITY IS SEEKING TO CLOSE AN UNAUTHORISED STRUCTURE IN CAUSEWAY BAY SO THAT IT CAN BE DEMOLISHED WITHOUT CAUSING DANGER TO THE OCCUPIERS AND THE PUBLIC.

THE UNAUTHORISED SINGLE-STOREY STRUCTURE IS LOCATED AT THE REAR LANE OF 16 KAI CHIU ROAD.

NOTICE OF INTENTION TO APPLY FOR A CLOSURE ORDER ON JUNE 22 UNDER THE BUILDINGS ORDINANCE FROM THE HONG KONG DISTRICT COURT WAS POSTED ON THE PREMISES TODAY (THURSDAY).

DEMOLITION WORKS ARE EXPECTED TO START ONCE THE CLOSURE ORDER IS ISSUED.

------0-------

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS t * t

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1>430

+ 720

REVERSAL OF LAF

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

-R70 EFFECT OF LAF TODAY

CLOSING BALANCE TN THE ACCOUNT 1’280

LAF RATE 2.00 BID/4.00 OFFER TWI 114.0 *+0.1* 18.3.1993

HONG KONG GOVERNMENT EXCHANGE FUND

EF TERMS BILLS YIELD TERM ISSUE HONG KONG COUPON GOVERNMENT BONDS

PRICE YIELD

1 WEEK 2.17 PCT 14 MONTHS 2405 5.50 102.23 3.56

1 MONTH 2.56 PCT 17 MONTHS 2408 5.50 101.10 3.60

3 MONTHS 2.83 PCT 20 MONTHS 2411 4.375 101.37 3.80

6 MONTHS 3.14 PCT 23 MONTHS 2502 4.625 101.40 4.02

12 MONTHS 3.44 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 37.344MN

CLOSED 18 MARCH 1993

0

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

FRIDAY, MARCH 19, 1993

CONTENTS PAGE NO.

EXCO TO CONSIDER ELECTION BILL ............................... 1

ADMINISTRATIVE APPEALS BOARD BILL GAZETTED ................... 2

HOUSING AUTHORITY CHAIRMAN RESIGNS ........................... 3

TALKS ON KOWLOON SKY RAIL WILL NOT PROCEED ................... 3

RE-ORGANISATION OF BUILDINGS AND LANDS DEPARTMENT ............ 4

MISUSE OF ANTI-DUMPING ACTIONS LIMITS TRADE COMPETITION ...... 5

HK'S CHARTER FOR YOUTH INTRODUCED ............................ 8

EXCHANGE FUND ADVISORY COMMITTEE MEETS ....................... 10

IMPROVEMENTS TO PUBLIC ASSISTANCE SCHEME ..................... 10

PEDESTRIAN SUBWAY PLANNED FOR POK FU LAM ..................... H

RESUMPTION AND RECONSTRUCTION OF MONMOUTH TERRACE ............ 12

TENDERS INVITED FOR PLAYGROUND ............................... 12

PREQUALIFICATION FOR GOVT DOCKYARD CONSTRUCTION INVITED ...... 13

RESUMPTION OF PRIVATE AGRICULTURAL LOTS ...................... 14

SAFETY AWARENESS IMPORTANT TO WORKERS ........................ 14

FIRE SERVICES HOST INTER-DEPARTMENTAL RACE ................... 15

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS .. 16

FRIDAY, MARCH 19, 1993

1

EXCO TO CONSIDER ELECTION BILL

*****

THE EXECUTIVE COUNCIL WILL OBVIOUSLY CONSIDER NEXT TUESDAY THE INTRODUCTION OF THE BILL ON ELECTORAL ARRANGEMENT TO THE LEGISLATIVE COUNCIL, THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, SAID TODAY (FRIDAY).

SPEAKING TO REPORTERS BEFORE ATTENDING A LUNCH WITH LEGISLATIVE COUNCILLORS, THE GOVERNOR SAID: "I AM SURE WE’LL TAKE A SENSIBLE DECISION, TAKING ACCOUNT BOTH OF THE BUSINESS WHICH IS ALREADY IN FRONT OF THE LEGISLATIVE COUNCIL AND THE OTHER DEVELOPMENTS.”

ASKED IF HE WOULD TAKE ANY INITIATIVES TO RESUME TALKS, THE GOVERNOR SAID THE GOVERNMENT WAS READY AT ANY TIME TO TALK.

"WE COULD START TALKS TOMORROW ON EXACTLY THE SAME REASONABLE AND FAIR BASIS THAT WE'VE BEEN TALKING WITH CHINA FOR THE LAST 10 YEARS OR MORE.

"BUT IF THAT IS IMPOSSIBLE, AND IF CHINA PUTS NEW DIFFICULTIES AND OBJECTIONS IN THE WAY WHICH WOULD SIDELINE HONG KONG, WHICH WOULD IN SOME RESPECTS HUMILIATE HONG KONG, AND IF THAT’S THE SITUATION, WE SHALL HAVE TO MOVE ON.

"I AM SURE THE LEGISLATIVE COUNCIL WILL WANT TO START DEBATING MATTERS AS SOON AS POSSIBLE."

ON WHETHER THERE HAD BEEN FURTHER COMMUNICATION WITH THE CHINESE SIDE, THE GOVERNOR SAID THE LAST COMMUNICATION WAS THE RATHER DISAPPOINTING MESSAGE FROM DIRECTOR OF HONG KONG AND MACAO AFFAIRS OFFICE UNDER CHINA’S STATE COUNCIL, MR LU PING, THE OTHER DAY.

"OBVIOUSLY, IF TALKS ARE AS HE SAID IMPOSSIBLE FOR THE TIME BEING, THEN WE MUST GET ON WITH THE BUSINESS OF GOVERNMENT IN HONG KONG, AND GET ON WITH THE BUSINESS OF TAKING DECISIONS ABOUT THE ELECTORAL ARRANGEMENTS FOR 1994 AND 95," HE ADDED.

IN REPLY TO ANOTHER QUESTION FROM THE PRESS AFTER ATTENDING THE LUNCH, THE GOVERNOR STRESSED THAT HE WOULD GO ON WORKING IN THE INTERESTS OF HONG KONG PEOPLE AND TRYING TO ENSURE AS BROADLY BASED AND CREDIBLE A LEGISLATIVE COUNCIL IN HONG KONG.

HE SAID IT WAS ONE OF THE IMPORTANT WAYS IN WHICH HONG KONG COULD SECURE THE RULE OF LAW AND ITS FUTURE PROSPERITY AND STABILITY.

-----0------

/2 ........

FRIDAY, MARCH 19, 1993

2

ADMINISTRATIVE APPEALS » » » »

BOARD BILL GAZETTED * *

AN INDEPENDENT ADMINISTRATIVE APPEALS BOARD (AAB) IS TO BE SET UP TO STREAMLINE ADMINISTRATIVE APPEALS PROCEDURES, THE GOVERNMENT ANNOUNCED TODAY (FRIDAY).

THE ADMINISTRATIVE APPEALS BOARD BILL GAZETTED TODAY IS AIMED AT PROVIDING A MORE OPEN AND UNIFORM APPEAL SYSTEM IN LINE WITH ARTICLE 10 OF THE BILL OF RIGHTS ORDINANCE.

"IT WILL ALSO HELP REDUCE THE VOLUME OF MINOR AND ROUTINE BUSINESS GOING BEFORE THE EXECUTIVE COUNCIL," A GOVERNMENT SPOKESMAN SAID.

UNDER THE PROPOSAL, THE AAB WILL CONDUCT ITS HEARINGS IN PUBLIC, ALLOW THE APPELLANT THE RIGHT TO ATTEND, AND PERMIT REPRESENTATION BY COUNSEL.

THE SPOKESMAN SAID THIS WOULD NOT ONLY IMPROVE THE TRANSPARENCY OF THE DECISIONS MADE ON THE APPEALS, BUT WOULD ALSO ENHANCE THE QUALITY OF THE ADMINISTRATION OF JUSTICE.

THE SET UP OF THE BOARD IS DESIGNED TO HANDLE A WIDE RANGE OF APPEALS.

INITIALLY, IT WILL ONLY DEAL WITH APPEALS OF A SIMPLE AND ROUTINE NATURE, FOR IT TO BUILD UP EXPERIENCE AND EXPERTISE. THESE INCLUDE MISCELLANEOUS LICENSING AND REGISTRATION APPEALS.

"APPEALS WHICH MAY HAVE IMPORTANT POLICY OR POLITICAL IMPLICATIONS WILL CONTINUE TO BE DEALT WITH BY THE EXECUTIVE COUNCIL," THE SPOKESMAN SAID.

THE CONCEPT OF THE AAB IS MODELLED ON THE SUCCESSFUL EXPERIENCE OF THE MUNICIPAL SERVICES APPEALS BOARDS WHICH WERE ESTABLISHED IN MID-1990 TO TAKE OVER FROM THE EXECUTIVE COUNCIL THE RESPONSIBILITY FOR HEARING CERTAIN STATUTORY APPEALS AGAINST THE MUNICIPAL COUNCILS, SUCH AS HAWKER AND LIQUOR LICENSING APPEALS.

THE MUNICIPAL SERVICES APPEALS BOARDS CONSIST OF AN URBAN SERVICES APPEALS BOARD AND A REGIONAL SERVICES APPEALS BOARD.

THE AAB WILL BE CHAIRED BY A LEGALLY QUALIFIED PERSON. THE BOARD WILL HAVE THE POWER TO EXERCISE ALL THE POWERS AND DISCRETIONS CONFERRED ON THE ORIGINAL DECISION-MAKER AND MAY AFFIRM, VARY, OR SET ASIDE THE ORIGINAL DECISION.

THE BILL IS SCHEDULED TO BE INTRODUCED INTO THE LEGISLATIVE

COUNCIL ON MARCH 31.

--------0-----------

/3 .........

FRIDAY, MARCH 19, 1993

3

HOUSING AUTHORITY CHAIRMAN RESIGNS

*****

THE GOVERNMENT ANNOUNCED TODAY (FRIDAY) THAT THE GOVERNOR HAD ACCEPTED THE RESIGNATION OF STR DAVID AKERS-JONES AS CHAIRMAN OF THE HOUSING AUTHORITY WHICH WILL TAKE EFFECT AT THE END OF THIS MONTH (MARCH).

A GOVERNMENT SPOKESMAN SAID: "SIR DAVID WROTE TO THE GOVERNOR SAYING THAT, HAVING COMPLETED FIVE YEARS AS CHAIRMAN, AND FOR VARIOUS REASONS, HE FELT THE TIME HAD COME TO RETIRE."

IN A LETTER REPLYING TO SIR DAVID, THE GOVERNOR EXPRESSED HIS GRATITUDE FOR THE WORK HE HAD DONE DURING HIS FIVE YEARS AS CHAIRMAN.

"THIS HAS NOT BEEN AN EASY PERIOD," THE GOVERNOR SAID. HOUSING HAD INCREASINGLY BECOME A FOCUS OF POLITICAL ACTIVITY AND OF CONTINUING CONCERN TO ORDINARY FAMILIES IN HONG KONG.

THE GOVERNOR OFFERED SIR DAVID BEST WISHES FOR THE FUTURE.

--------0-----------

TALKS ON KOWLOON SKY RAIL WILL NOT PROCEED *****

THE GOVERNOR IN COUNCIL HAS DECIDED THAT THE GOVERNMENT SHOULD NOT ENTER INTO NEGOTIATIONS WITH THE KOWLOON SKY RAIL COMPANY OVER ITS PROPOSAL TO BUILD AND OPERATE AN ELEVATED LIGHT RAIL SYSTEM BETWEEN TSIM SHA TSUI AND HUNG HOM.

A GOVERNMENT SPOKESMAN SAID TODAY (FRIDAY): "IN TRANSPORT TERMS, THE PROPOSED SCHEME IS CONSIDERED DESIRABLE BUT NOT ESSENTIAL. ALTHOUGH IT WOULD PROVIDE SOME TRANSPORT BENEFITS, SUCH BENEFITS COULD ALSO BE MET BY THE CONTINUED UPGRADING OF EXISTING TRANSPORT SERVICES."

ON THE ENVIRONMENTAL IMPLICATIONS OF THE PROPOSED SCHEME, THE SPOKESMAN SAID: "THE GOVERNMENT HAS STRONG RESERVATIONS ABOUT NOISE LEVELS PRODUCED BY THE PROPOSED SYSTEM."

"THIS WOULD BE PARTICULARLY OBJECTIONABLE TO RESIDENTS IN HUNG HOM WHERE SOME OF THE BUILDINGS WOULD BE ONLY 15 METRES FROM THE TRACKS, AND TO USERS OF URBAN COUNCIL GARDENS AND FACILITIES ALONG THE ROUTE. "

"MOREOVER, THE PROPOSED SCHEME WOULD HAVE A MAJOR VISUAL IMPACT IN SOUTH KOWLOON."

"FOR EXAMPLE, THE GUIDEWAY IN SALISBURY ROAD WOULD BE EIGHT METRES WIDE, 10 METRES WIDE ON THE CURVES AND EVEN WIDER AT STATIONS."

/"THE URBAN .......

FRIDAY, MARCH 19, 1993

4

’’THE URBAN COUNCIL HAS STRONGLY OPPOSED THE PROPOSAL. THEY CONSIDER THAT THE ALIGNMENT WOULD RUN UNACCEPTABLY CLOSE TO THE CULTURAL CENTRE, SPACE MUSEUM AND SCIENCE MUSEUM, AND WOULD ENCROACH UPON THEIR GARDENS AND PARKS IN TSIM SHA TSUI, THUS SEVERELY AFFECTING PUBLIC ENJOYMENT OF THESE FACILITIES.”

’’WHILE THE KOWLOON CITY AND YAU TSIM DISTRICT BOARDS WELCOMED THE TRANSPORT BENEFITS OF THE PROPOSED SCHEME, THEY EXPRESSED CONCERN OVER THE LIKELY ENVIRONMENTAL IMPACT DURING BOTH CONSTRUCTION AND OPERATION.”

’’THE PROPOSED SCHEME IS NOT FINANCIALLY VIABLE ON A STAND-ALONE BASIS. THE COMPANY HAS SOUGHT PROPERTY DEVELOPMENT RIGHTS BY PRIVATE TREATY GRANT ABOVE A DEPOT ON HUNG HOM RECLAMATION TO HELP FUND THE SCHEME. THIS FALLS OUTSIDE THE CURRENT LAND POLICY,” THE SPOKESMAN SAID.

THE GOVERNMENT WILL, HOWEVER, CONTINUE TO EXPLORE THE POSSIBILITIES FOR LIGHT RAIL IN ITS PLANNING FOR THE URBAN AREA.

"WE WILL BE HAPPY TO CONSIDER ANY PROPOSAL FOR A LIGHT RAIL SYSTEM WHICH CAN BRING ABOUT SIGNIFICANT TRANSPORT BENEFIT WITHOUT ADVERSELY AFFECTING THE ENVIRONMENT,” THE SPOKESMAN SAID.

--------0

RE-ORGANISATION OF BUILDINGS AND LANDS DEPARTMENT ♦ ♦ * t *

PROPOSAL HAS BEEN MADE FOR THE BUILDINGS AND LANDS DEPARTMENT (BLD) TO SPLIT INTO TWO SEPARATE DEPARTMENTS, NAMELY THE BUILDINGS DEPARTMENT AND THE LANDS DEPARTMENT WITH EFFECT FROM JULY 1 THIS YEAR TO ACHIEVE GREATER EFFICIENCY IN THEIR OPERATIONS.

THE PROPOSAL INVOLVES RE-DISTRIBUTION AND ADJUSTMENT OF POSTS WHICH WILL RESULT IN A NET REDUCTION OF FOUR POSTS INCLUDING ONE DIRECTORATE POST WITH AN ANNUAL SAVING OF $1.5 MILLION IN STAFF COSTS.

IT WILL BE SUBMITTED SHORTLY TO THE ESTABLISHMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE FOR APPROVAL.

UNDER THE PROPOSAL, THE BUILDINGS DEPARTMENT WILL TAKE OVER THE EXISTING FUNCTIONS OF THE BUILDINGS ORDINANCE OFFICE (BOO). GREATER EMPHASIS WILL BE PLACED ON TACKLING THE SAFETY AND MAINTENANCE PROBLEMS OF PRIVATE BUILDINGS.

THE NEW LANDS DEPARTMENT WILL BE RESPONSIBLE FOR LAND ADMINISTRATION; LAND SURVEY AND MAPPING; AND GOVERNMENT CONVEYANCING FUNCTIONS CURRENTLY HANDLED BY THE LANDS ADMINISTRATION OFFICE, THE SURVEY AND MAPPING OFFICE AND THE LEGAL ADVISORY AND CONVEYANCING OFFICE OF THE BLD.

THE DIRECTORS OF THE TWO NEW DEPARTMENTS WILL BE ANSWERABLE TO THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS DIRECT.

/A GOVERNMENT .......

FRIDAY, MARCH 19, 1993

A GOVERNMENT SPOKESMAN TODAY (FRIDAY) SAID THE PROPOSED REORGANISATION WOULD ENABLE BOO TO OPERATE AS A SEPARATE AND INDEPENDENT DEPARTMENT SO THAT IT CAN RESPOND MORE EFFECTIVELY TO NEW DEMANDS IN PRIVATE BUILDING CONTROL, PARTICULARLY IN THE AREAS OF SAFETY AND MAINTENANCE.

"THE NEW BUILDINGS DEPARTMENT WILL HAVE A MORE DISTINCT IDENTITY AND BE MORE ACCOUNTABLE TO THE PUBLIC. IT WILL ALSO PROVIDE A GREATER INCENTIVE TO STAFF TO ENHANCE PERFORMANCE," THE SPOKESMAN SAID.

THE PROPOSED RE-ORGANISATION WILL ALSO MEAN THAT THE FOUR MAIN POLICY AREAS OF THE PLANNING, ENVIRONMENT AND LANDS BRANCH, NAMELY TOWN PLANNING, ENVIRONMENTAL PROTECTION, LAND ADMINISTRATION AND BUILDING CONTROL WILL BE HANDLED AT IMPLEMENTATION LEVEL BY FOUR SEPARATE DEPARTMENTS, ALL WITH DIRECT ACCESS TO THE BRANCH.

THE SPLIT OF THE BUILDINGS AND LANDS DEPARTMENT INTO TWO WILL NOT INCUR ADDITIONAL OPERATING COSTS.

-----0------

MISUSE OF ANTI-DUMPING ACTIONS LIMITS TRADE COMPETITION

*****

THE DIRECTOR-GENERAL OF TRADE, MR DONALD TSANG, TODAY (FRIDAY) CONDEMNED COUNTRIES THAT USED ANTI-DUMPING ACTIONS TO DAMAGE FREE COMPETITION.

HE CALLED ON HONG KONG’S TRADING PARTNERS TO ACT TOGETHER TO REVERSE THESE UNWELCOME TREND, AND CAUTIONED THAT "WE WILL ALL BE IN THE SAME BOAT AND WILL SINK OR FLOAT TOGETHER."

ADRESSTNG MEMBERS OF THE FRENCH BUSINESS ASSOCIATION, MR TSANG SAID IT APPEARED THAT ANTI-DUMPING HAD CHANGED FROM BEING A TOOL TO PROTECT COMPETITION TO ONE THAT WAS USED TO PROTECT THE DOMESTIC INDUSTRIES.

"ANTI-DUMPING SYSTEMS WERE NOT CONCEIVED TO LIMIT COMPETITION BASED ON COMPARATIVE ADVANTAGE. HOWEVER, IF WE LOOK AT THE GATT ANTI-DUMPING CODE TODAY, WE COULD SEE THAT IT HAS ITS INADEQUACIES AND IS OPEN TO INTERPRETATION.

’’IMPORTING AUTHORITIES WITH NO REGARD FOR THE ORIGINAL SPIRIT OF ANTI-DUMPING MAY USE ANTI-DUMPING ACTIONS TO LIMIT IMPORT COMPETITION, AND TO PROTECT DOMESTIC PRODUCERS WHICH MAY ALREADY HAVE CONSIDERABLE MARKET POWER AND PROTECTION AGAINST IMPORTS," HE SAID.

MR TSANG SAID TRADITIONAL USERS OF ANTI-DUMPING LAWS, NAMELY THE UNITED STATES, THE EUROPEAN COMMISSION, CANADA AND AUSTRALIA, AND THEIR INDUSTRIES COULD EASILY FIND THEMSELVES ON THE RECEIVING FND OF ANTI-DUMPING CASES AGAINST THEIR EXPORTS.

/’•INDUSTRIALISED COUNTRIES ........

FRIDAY, MARCH 19, 1993

6

’’INDUSTRIALISED COUNTRIES WHICH SET BAD EXAMPLES BY ABUSIVE USE OF ANTI-DUMPING ACTIONS MAY FIND THEMSELVES EMULATED BY OTHERS.

"TOO SOON, THEY MAY FIND THEMSELVES THE VICTIM OF THE GOLDEN RULE OF TRADE: WHAT YOU DO UNTO OTHERS WOULD BE DONE UNTO YOU.

"THE SIGNS ARE WORRYING," MR TSANG SAID. HE QUOTED FIGURES TO DEMONSTRATE THE PROLIFERATION OF NEW USERS AND ANTI-DUMPING ACTIONS WORLDWIDE.

IN 1980/81, THERE WERE AROUND 70 CASES. IN 1991/92, THERE WERE OVER 230 CASES. "USERS ARE NOW NO LONGER CONFINED TO INDUSTRIALISED COUNTRIES," HE SAID.

"APART FROM THE FOUR TRADITIONAL USERS. THEY NOW INCLUDE BRAZIL, INDIA, JAPAN, KOREA, MEXICO, POLAND AND TURKEY.

"WE UNDERSTAND THAT MORE ARE IN THE OFFING. THESE WOULD MEAN MORE TRADE CONFLICTS AND RETRIBUTION IN THE LONG RUN, PROBABLY IN DIFFERENT GUISE. THEY ARE NOT CONDUCIVE TO INTERNATIONAL TRADE," HE ADDED.

FROM 1980 UNTIL NOW, GLOBALLY 30 CASES HAVE BEEN INITIATED AGAINST HONG KONG, 13 RESULTED IN ANTI-DUMPING DUTIES, 15 WERE TERMINATED AND TWO ARE STILL UNDER INVESTIGATION.

ACCORDING TO MR TSANG, THESE ANTI-DUMPING ACTIONS COVERED A WIDE RANGE OF PRODUCTS INCLUDING TEXTILES, PHOTO ALBUMS, CERTAIN FOOTWEAR ITEMS, TABLEWARE AND EVEN CANDLES.

LAST YEAR, THERE WAS A RECORD NUMBER OF EIGHT CASES AGAINST HONG KONG: ONE FROM AUSTRALIA, ONE FROM THE EC, ONE FROM KOREA, THREE FROM MEXICO AND TWO FROM NEW ZEALAND.

MR TSANG POINTED OUT THAT ONE COULD EASILY CONJURE DUMPING AS SOMETHING UNSAVORY AND UNFAIR UNLESS ONE LOOKED CLOSELY INTO ITS DEFINITION AND WHAT IT WAS TAKEN TO MEAN IN PRACTICE.

"ANTI-DUMP I NG ACTIONS’ HARASSMENT EFFECT SINKS IN WITH INITIATION OF AN INVESTIGATION, SOMETIMES EVEN WITH THE RUMOUR OF A CASE ABOUT TO BE FILED.

"THE UNCERTAINTY CREATED WOULD MAKE IMPORTERS THINK TWICE BEFORE SOURCING FROM THE AREA UNDER INVESTIGATION. THIS MEANS IMPORT COMPETITION COULD BE LIMITED EVEN IF THE INVESTIGATION EVENTUALLY FINDS NO DUMPING OR INJURY.

"IN THE MEANTIME, EXPORTERS AND MANUFACTURERS CONCERNED SUFFERED FALLING BUSINESS, NOT TO MENTION THE TIME AND EXPENSES INCURRED TN THEIR DEFENCE.

"SMALL COMPANIES WOULD BE PARTICULARLY HARD HIT. MANY MAY FORGO THE MARKET IN FACE OF THE PROHIBITING TIME AND EXPENSES REQUIRED TO GO THROUGH THE INVESTIGATION," MR TSANG SAID.

/’’HONG KONG ..........

FRIDAY, MARCH 19, 1993

"HONG KONG HAS A COMPLETELY OPEN MARKET. OUR COMPANIES ARE GENERALLY SMALL AND DO NOT HAVE THE RESOURCES TO PRACTISE PREDATORY STRATEGIES," HE ADDED.

THEREFORE, THE HONG KONG GOVERNMENT HAS STEPPED UP ITS FIGHT AGAINST THE MISUSE OF ANTI-DUMPING.

THE TRADE DEPARTMENT WORKS CLOSELY WITH HONG KONG’S OVERSEAS ECONOMIC AND TRADE OFFICES TO MONITOR PROCEEDINGS AND PROVIDE EARLY WARNING TO THE TRADE WHERE POSSIBLE.

IF PROCEEDINGS ARE INITIATED, THE DEPARTMENT WILL MEET WITH TRADERS TO PROVIDE ADVICE ON THE LAWS AND PRACTICES OF THE IMPORTING AUTHORITIES.

TRADERS ARE USUALLY STRONGLY ENCOURAGED TO PARTICIPATE IN THE INVESTIGATION TO DEFEND THEIR INTERESTS.

THE DEPARTMENT ALSO EXAMINES ALL AVAILABLE INFORMATION FROM THE COMPLAINANT TO ENSURE THAT PROCEEDINGS ARE IN ACCORDANCE WITH THE GATT ANTI-DUMPING CODE, AND THAT HONG KONG COMPANIES ARE NOT UNFAIRLY TREATED.

"WHERE APPROPRIATE, WE MAKE REPRESENTATIONS TO THE IMPORTING AUTHORITIES. IF CIRCUMSTANCES SO WARRANT, WE WOULD HAVE NO HESITATION IN SEEKING BILATERAL CONSULTATIONS OR EVEN ESCALATING THE MATTER TO THE MULTILATERAL FORUM," MR TSANG EXPLAINED.

MULTILATERALLY, MR TSANG REGRETTED THAT MAJOR DISAGREEMENTS ON ALMOST ALL FRONTS BETWEEN EXPORTING AND IMPORTING COUNTRIES REMAINED AFTER SIX YEARS OF DIFFICULT NEGOTIATIONS IN THE URUGUAY ROUND (UR) OF TRADE TALKS.

"WE NOW HAVE AN ARBITRATED TEXT BY THE CHAIRMAN OF THE NEGOTIATING GROUP, WHICH FALLS FAR SHORT OF OUR EXPECTATIONS.

"ALTHOUGH WE ARE NOT ENTIRELY HAPPY WITH IT, WE HAVE INDICATED THAT WE ARE PREPARED TO ACCEPT IT AS PART OF THE DRAFT FINAL ACT TO PUSH FORWARD THE CONCLUSION OF THE UR.

"WE HAVE HOWEVER MADE IT CLEAR THAT WE WILL OPPOSE MOST VIGOROUSLY ANY CHANGES TO THE DRAFT ANTI-DUMPING TEXT WHICH WILL WORK AGAINST HONG KONG’S INTEREST," HE CONCLUDED.

-----o------

/8 .........

FRIDAY, MARCH 19, 1993

- 8 -

HK’S CHARTER FOR YOUTH INTRODUCED » * * * »

THE CHARTER FOR YOUTH THAT ENUNCIATES THE PRINCIPLES AND IDEALS ON YOUTH DEVELOPMENT WITH THE AIM TO GIVE YOUNG PEOPLE THE BEST POSSIBLE OPPORTUNITIES IN LIFE WAS INTRODUCED TODAY (FRIDAY).

INTRODUCING THE CHARTER AT A PRESS CONFERENCE, THE CHAIRMAN OF THE COMMISSION ON YOUTH, MR ERIC LI KA-CHEUNG, SAID THE CHARTER SERVED AS A USEFUL REFERENCE FOR POLICY-MAKERS, YOUTH SERVICE PROVIDERS AND OTHERS INVOLVED IN PROMOTING THE WELFARE OF YOUNG PEOPLE.

THE CHARTER COMPRISES THREE SECTIONS. THE FIRST SECTION STIPULATES THE PRINCIPLES AND IDEALS ON YOUTH DEVELOPMENT; THE SECOND SECTION SETS OUT THE RIGHTS OF YOUTH AND THE THIRD STATES THE LONG-TERM SOCIAL GOALS FOR YOUTH DEVELOPMENT.

HE SAID THE CHARTER WOULD BE PROMULGATED BY WAY OF A SYSTEM OF SUBSCRIPTION.

"ALL ORGANISATIONS AND INDIVIDUALS WITH AN INTEREST IN YOUTH DEVELOPMENT ARE WELCOME TO INDICATE THEIR SUPPORT AND BECOME A SUBSCRIBER.

"GOVERNMENT HAS AGREED TO TAKE THE LEAD TO BECOME A SUBSCRIBER," MR LI SAID.

"THE COMMISSION IS VERY MUCH ENCOURAGED BY THE GOVERNMENT’S POSITIVE RESPONSE," HE ADDED.

ON OTHER POTENTIAL SUBSCRIBERS, MR LI SAID HE EXPECTED ENTHUSIASTIC SUPPORT FROM DIFFERENT SECTORS OF THE COMMUNITY, PARTICULARLY VOLUNTARY AGENCIES, YOUTH ORGANISATIONS, SCHOOLS, YOUNG PEOPLE AND THEIR PARENTS.

"WE WILL OF COURSE CAST A WIDE NET TO COVER ALL THOSE WHO HAVE A ROLE TO PLAY IN SHAPING YOUNG PEOPLE’S VALUES AND ATTITUDES," HE EMPHASISED.

EXPLAINING THE MECHANICS OF THE SUBSCRIPTION SYSTEM, MR LI SAID:

"THE ACT OF SUBSCRIBING INDICATES ONE’S DESIRE TO UPHOLD THE PRINCIPLES AND IDEALS OF THE CHARTER.

"SUBSCRIBING ORGANISATIONS WOULD WORK WITHIN THEIR RESPECTIVE CONSTITUTIONS, POLICIES, PRIORITIES AND AVAILABLE RESOURCES TO IMPLEMENT AS BEST AS THEY CAN THE PRINCIPLES CONTAINED IN THE CHARTER."

HE SAID PERIODIC REVIEWS IN THE FORM OF CONFERENCES WOULD BE HELD TO PROVIDE AN OPPORTUNITY FOR SUBSCRIBERS TO SHARE THEIR EXPERIENCE IN REALISING THE PRINCIPLES IN THE CHARTER. SUBSCRIBING ORGANISATIONS WOULD BE INVITED TO PRESENT REPORTS.

/"WE PLAN ........

FRIDAY, MARCH 19, 1993

9

"WE PLAN TO HOLD THE FIRST REVIEW IN TWO YEARS’ TIME," MR LI SAID.

ON THE WAY FORWARD, MR LI SAID HE WOULD INVITE ALL ORGANISATIONS WHICH HAD AN INTEREST IN YOUTH DEVELOPMENT TO BECOME SUBSCRIBERS.

"ORGANISATIONS MAY NEED TIME TO CONSIDER THE CONTENTS OF THE CHARTER IN GREATER DETAIL. THE COMMISSION INTENDS TO HOLD A SUBSCRIPTION CEREMONY IN THE SUMMER TO MARK THE FORMAL LAUNCHING OF THE CHARTER," HE SAID.

THE COMMISSION IS DRAWING UP DETAILS OF THE CEREMONY.

ON THE BACKGROUND OF THE DEVELOPMENT OF THE CHARTER, MR LI SAID SINCE THE RELEASE OF THE DRAFT CHARTER FOR PUBLIC CONSULTATION IN EARLY 1992, THE COMMISSION RECEIVED POSITIVE AND CONSTRUCTIVE COMMENTS AND THERE WAS OVERWHELMING SUPPORT FOR THE PRINCIPLES ENSHRINED IN THE CHARTER.

THE COMMISSION AMENDED THE DRAFT CHARTER IN THE LIGHT OF THE COMMENT RECEIVED.

OUTLINING THE CHANGES, MR LI SAID: "APART FROM THE TEXTUAL AMENDMENTS, A NUMBER OF POINTS ARE WORTH NOTING."

"FIRST, WE HAVE ADDED A PREFACE TO CLARIFY THE NATURE OF THE CHARTER AND ROLE OF SUBSCRIBERS.

"SECONDLY, WE HAVE HIGHLIGHTED THE DUTIES AND RESPONSIBILITIES OF YOUNG PEOPLE; AND THIRDLY, TN RESPONSE TO PUBLIC CONCERN OVER THE NEED TO PROMOTE YOUNG PEOPLE’S KNOWLEDGE ABOUT CHINESE CULTURE, WE HAVE ENHANCED THE RELEVANT SECTIONS BY MAKING A SPECIFIC REFERENCE TO CHINESE CULTURE," HE SAID.

THE SETTING UP OF THE COMMISSION ON YOUTH AND THE DEVELOPMENT OF A CHARTER FOR YOUTH WAS ANNOUNCED BY THE GOVERNOR IN HIS ADDRESS TO THE LEGISLATIVE COUNCIL IN 1989.

THE OBJECTIVE OF THE CHARTER IS TO GIVE YOUNG PEOPLE THE BEST POSSIBLE OPPORTUNITIES IN EDUCATION, PHYSICAL AND MENTAL FITNESS, INTERNATIONAL EXPOSURE AND TO PROMOTE CIVIC RESPONSIBILITY AND PARTICIPATION IN COMMUNITY AFFAIRS.

AFTER THE PUBLICATION OF A DRAFT CHARTER FOR PUBLIC CONSULTATION TN EARLY 1992, A REVISED CHARTER WAS SUBMITTED TO THE GOVERNOR IN DECEMBER LAST YEAR WITH THE RECOMMENDATION THAT THE GOVERNMENT SHOULD BECOME A SUBSCRIBER TO THE CHARTER.

TODAY’S PRESS CONFERENCE WAS HELD TO INTRODUCE THE CHARTER TO THE MEDIA IN ADVANCE. COPIES OF THE CHARTER WILL BE AVAILABLE FOR MEMBERS OF THE PUBLIC AT DISTRICT OFFICES FROM THE LATTER HALF OF APRIL THIS YEAR.

ORGANISATIONS WHICH HAVE AN INTEREST IN YOUTH DEVELOPMENT WILL SHORTLY RECEIVE ADVANCE COPIES OF THE CHARTER.

FOR ENQUIRIES, PLEASE CONTACT THE SECRETARIAT OF THE COMMISSION ON YOUTH ON TEL 835 1929.

------0-------

710 ........

FRIDAY, MARCH 19, 1993

10

EXCHANGE FUND ADVISORY COMMITTEE MEETS

*****

THE EXCHANGE FUND ADVISORY COMMITTEE, WITH ITS NEW LINE-UP, HELD ITS FIRST MEETING TODAY (FRIDAY).

THE GOVERNOR RECENTLY APPOINTED THREE NEW MEMBERS TO THE COMMITTEE.

THEY ARE SIR QUO-WEI LEE, THE CHAIRMAN OF THE HANG SENG BANK LIMITED; MR ZHOU ZHENXING, GENERAL MANAGER OF THE BANK OF CHINA HONG KONG BRANCH; AND MR ANTONY LEUNG KAM-CHUNG, COUNTRY CORPORATE OFFICER, HONG KONG OF CITIBANK N A.

THE COMMITTEE ADVISES THE FINANCIAL SECRETARY ON MATTERS RELATING TO THE CONTROL OF THE EXCHANGE FUND.

FOLLOWING THE ESTABLISHMENT OF THE HONG KONG MONETARY AUTHORITY IN APRIL, IT WILL FUNCTION VERY MUCH LIKE A MANAGEMENT BOARD, INCLUDING ADVISING THE FINANCIAL SECRETARY ON THE ANNUAL BUDGET OF THE MONETARY AUTHORITY.

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, IS THE CHAIRMAN OF THE COMMITTEE.

OTHER MEMBERS ARE THE CHIEF EXECUTIVE (DESIGNATE) OF THE HONG KONG MONETARY AUTHORITY, MR JOSEPH YAM; MR MARVIN CHEUNG KIN-TUNG, PROFESSOR CAE GOODHART; MR DAVID LI KWOK-PO, MR A W NICOLLE AND SIR WILLIAM PURVES.

-----0------

IMPROVEMENTS TO PUBLIC ASSISTANCE SCHEME

*****

IN RESPONSE TO PRESS ENQUIRIES, A SOCIAL WELFARE DEPARTMENT SPOKESMAN TODAY (FRIDAY) SAID OVER THE PAST 10 YEARS MANY IMPROVEMENTS HAD BEEN MADE TO THE PUBLIC ASSISTANCE SCHEME TO BRING GREATER BENEFITS TO THE NEEDY.

HE CITED EXAMPLES OF THE BASIC RATE, A HIGHER LEVEL OF ’’DISREGARDED EARNINGS” FOR PUBLIC ASSISTANCE CLIENTS WHO HAD A JOB AND THE EXTENSION OF ’’DISREGARDED EARNINGS” TO ABLE-BODIED ADULTS TO ENCOURAGE SUCH CLIENTS TO SEEK EMPLOYMENT.

”A MEAL ALLOWANCE IS NOW PROVIDED FOR A FULL-DAY STUDENT WHO NEEDS TO TAKE LUNCH OUTSIDE,” HE ADDED.

HE ALSO NOTED THAT A HIGHER RATE OF OLD AGE SUPPLEMENT, 14 PER CENT MORE THAN THE NORMAL RATE, WAS INTRODUCED FOR RECIPIENTS AGED 70 OR OVER.

PROVISIONS FOR NEW-BORN BABIES AND YOUNG PERSONS TAKING UP A FIRST JOB AFTER LEAVING SCHOOL ALSO CAME UNDER TWO NEW SPECIAL GRANTS, HE SAID.

/THE MOST ........

FRIDAY, MARCH 19, 1993

THE MOST RECENT IMPROVEMENT, THE CHILD SUPPLEMENT, WAS INTRODUCED IN NOVEMBER 1991 TO HELP MEET THE SPECIAL NEEDS OF CHILDREN.

’’THE CHILD SUPPLEMENT IS PAID ON TOP OF OTHER ALLOWANCES FOR CHILDREN SUCH AS SCHOOL FEES, TRAVELLING ALLOWANCES TO SCHOOL, SCHOOL UNIFORM, BOOKS AND STATIONERY," HE SAID.

THE SPOKESMAN STRESSED THAT WITH THE INTRODUCTION OF THE NEW COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME ON JULY 1, THE MONTHLY PAYMENT RECEIVED BY THE CLIENTS WOULD BE IMPROVED IN REAL TERMS BY BETWEEN FOUR PER CENT AND 32 PER CENT AND WOULD BE ABOVE THE REGULAR ADJUSTMENT FOR INFLATION.

MORE THAN 100,000 OF THE MORE VULNERABLE MEMBERS WILL BENEFIT FROM THE NEW SCHEME.

"THE SCHEME IS SUFFICIENTLY FLEXIBLE SO THAT THE GREATER THE NEED, THE GREATER IS THE SUPPORT FROM THE GOVERNMENT," HE SAID.

UNDER THE NEW SCHEME, A SINGLE PERSON AGED 70 WHO IS NOT PAYING RENT (FOR EXAMPLE LIVING IN A SQUATTER HUT) WILL RECEIVE AN AVERAGE OF $1,690 A MONTH. HIS MEDICAL FEES REQUIRED ARE WAIVED AT GOVERNMENT CLINICS AND HOSPITALS UNDER THE HOSPITAL AUTHORITY.

PEDESTRIAN SUBWAY PLANNED FOR POK FU LAM ♦ ♦ ♦ ♦ ♦

THE HIGHWAYS DEPARTMENT PROPOSES TO CONSTRUCT A PEDESTRIAN SUBWAY SYSTEM AND ASSOCIATED ROAD IMPROVEMENT WORKS AT THE JUNCTION OF POK FU LAM ROAD AND POKFIELD ROAD.

THE WORKS WILL IMPROVE THE TRAFFIC CAPACITY OF THIS SECTION OF POK FU LAM ROAD WHICH IS AT PRESENT A BOTTLENECK FOR THE NORTHBOUND TRAFFIC DURING THE MORNING PEAK HOURS.

PROPOSED WORKS INCLUDED THE CONSTRUCTION OF A PEDESTRIAN SUBWAY SYSTEM ACROSS POK FU LAM ROAD AND POKFIELD ROAD AND THE ANCILLARY ACCESS RAMP AND STAIRCASES.

AN ADDITIONAL TRAFFIC LANE WILL BE CONSTRUCTED AT POKFIELD ROAD APPROACH ADJACENT TO ACADEMIC TERRACE AND THE ASSOCIATED ROAD AND DRAINAGE WORKS.

UPON COMPLETION OF THE PROJECT, THE SUBWAY SYSTEM WILL NOT ONLY PROVIDE A SAFE GRADE-SEPARATED CROSSING FOR THE PEDESTRIANS BUT ALSO LEAD TO AN INCREASE IN THE TRAFFIC CAPACITY OF THIS ROAD JUNCTION BY UTILISING THE "GREEN" TIME ORIGINALLY ALLOCATED TO THE PEDESTRIAN PHASE FOR OTHER VEHICULAR PHASES.

A NOTICE ON THE PROPOSED WORKS IS GAZETTED TODAY (FRIDAY).

/A PLAN

FRIDAY, MARCH 19, 1993

12

A PLAN SHOWING THE PROPOSED WORKS CAN BE SEEN AT:

* THE CENTRAL AND WESTERN DISTRICT OFFICE, PUBLIC ENQUIRY SERVICE CENTRE, GROUND FLOOR, HARBOUR BUILDING, 38 PIER ROAD, CENTRAL; AND

* THE DISTRICT LANDS OFFICE, HONG KONG WEST, 19TH FLOOR, SOUTHORN CENTRE, 130 HENNESSY ROAD, WAN CHAI.

ANY PERSON OBJECTING TO THE PROPOSAL MUST SEND HIS OBJECTION IN WRITING TO THE SECRETARY FOR TRANSPORT, CENTRAL GOVERNMENT OFFICES, EAST WING, SECOND FLOOR, LOWER ALBERT ROAD, NOT LATER THAN MAY 18.

--------0------------

RESUMPTION AND RECONSTRUCTION OF MONMOUTH TERRACE

*****

THE GOVERNOR IN COUNCIL HAS AUTHORISED THE RESUMPTION AND RECONSTRUCTION OF MONMOUTH TERRACE IN WAN CHAI.

MONMOUTH TERRACE IS NOW UNDER PRIVATE MULTIPLE OWNERSHIP AND IS NOT PROPERLY MANAGED AND MAINTAINED.

AS A RESULT, THE ROAD IS IN A DILAPIDATED CONDITION AND ALWAYS OCCUPIED BY PARKED VEHICLES, BLOCKING THE ROAD AND HINDERING THE PASSAGE OF TWO VEHICLES AT THE SAME TIME.

THIS SITUATION COULD LEAD TO TRAFFIC CONGESTION ALONG MONMOUTH TERRACE WHICH MAY IN TURN AFFECT THE TRAFFIC AT KENNEDY ROAD. IT MAY ALSO CAUSE DIFFICULTIES OF ACCESS FOR EMERGENCY VEHICLES.

AFTER RESUMPTION OF THE ROAD, THE GOVERNMENT WILL RECONSTRUCT, MANAGE AND MAINTAIN THE ROAD AND DRAINS TO A PROPER STANDARD FOR THE BENEFIT OF THE GENERAL PUBLIC.

THE PROPOSED RECONSTRUCTION WORKS, WHICH INVOLVE THE REPAIR OF THE DEFECTIVE FOOTPATH, CARRIAGEWAY AND DRAINS WITHIN MONMOUTH TERRACE, ARE EXPECTED TO START IN JANUARY 1995, AND BE COMPLETED IN ABOUT SIX MONTHS.

-----0--------

TENDERS INVITED FOR PLAYGROUND

*****

THE ARCHITECTURAL SERVICES DEPARTMENT IS INVITING TENDERS FOR THE CONSTRUCTION OF A PLAYGROUND AT LEE ON ROAD, KWUN TONG.

WORKS INCLUDE THE CONSTRUCTION OF A SOCCER PITCH, A CHILDREN’S MULTI-PLAY AREA, A TOILET BLOCK, A REST GARDEN AND A LANDSCAPED AREA.

/THE PROJECT .......

FRIDAY, MARCH 19, 1993

13 -

THE PROJECT IS EXPECTED TO START IN JUNE FOR COMPLETION IN 11 MONTHS.

TENDER FORMS AND FURTHER PARTICULARS MAY BE OBTAINED FROM THE ARCHITECTURAL SERVICES DEPARTMENT, 34TH FLOOR, QUEENSWAY GOVERNMENT OFFICES, 66 QUEENSWAY, HONG KONG.

THE DEADLINE FOR SUBMITTING TENDERS IS NOON ON APRIL 16.

--------0 -

PREQUALIFICATION FOR GOVT DOCKYARD CONSTRUCTION INVITED

*****

THE ARCHITECTURAL SERVICES DEPARTMENT IS INVITING APPROVED CONTRACTORS TO PARTICIPATE IN A PREQUALIFICATION EXERCISE FOR REPROVISIONING THE GOVERNMENT DOCKYARD PHASE I ON STONECUTTERS ISLAND.

THE WORKS COMPRISE THE CONSTRUCTION OF A FOUR-STOREY OFFICE BLOCK, A TWO-STOREY WORKSHOP BLOCK AND VARIOUS SMALLER LOW-RISE BUILDINGS FOR OPERATIONAL, WORKSHOP AND STORAGE PURPOSES.

ONE OF THESE SMALLER BUILDINGS WILL BE BUILT INSIDE THE ADJACENT HMS TAMAR NAVAL BASE.

THE CONTRACTOR IS ALSO REQUIRED TO CARRY OUT EXTENSIVE EXTERNAL WORKS ON A LARGE NEWLY RECLAIMED SITE AND ALTERATION WORKS TO AN EXISTING MILITARY BUILDING, WHICH WILL BE INCORPORATED INTO THE GOVERNMENT DOCKYARD.

THE WORKS FORM PART OF THE WEST KOWLOON RECLAMATION PROJECT UNDER THE AIRPORT CORE PROGRAMME.

TENDERS WILL BE CALLED FROM THE PREQUALIFIED CONTRACTORS IN JULY AND THE PROJECT IS SCHEDULED TO START IN NOVEMBER FOR COMPLETION IN 14 MONTHS.

ONLY THOSE ON THE APPROVED CONTRACTORS FOR PUBLIC WORKS LIST I IN GROUP C FOR BUILDING WORKS, OR LIST II FOR BUILDING WORKS MAY APPLY FOR PREQUALIFICATION.

PREQUALIFICATION DOCUMENTS CAN BE OBTAINED FROM THE ASSISTANT DIRECTOR, ARCHITECTURAL SERVICES DEPARTMENT, ROOM 3508, 35TH FLOOR, QUEENSWAY GOVERNMENT OFFICES, HONG KONG.

THE DEADLINE FOR SUBMITTING APPLICATIONS IS NOON ON APRIL 8.

0---------

/14 ........

FRIDAY, MARCH 19, 1993

14 -

RESUMPTION OF PRIVATE AGRICULTURAL LOTS

* * * * *

THE GOVERNMENT IS TO RESUME LOTS IN TWO AREAS IN THE NEW TERRITORIES TO PROVIDE LAND FOR PUBLIC WORKS AND THE CONSTRUCTION OF A POWER SUB-STATION.

IN HA TSUEN, YUEN LONG, PORTIONS OF EIGHT PRIVATE AGRICULTURAL LOTS WITH A TOTAL AREA OF ABOUT 993 SQUARE METRES WILL BE RESUMED FOR THE CONSTRUCTION OF A CHANNEL IN THE DRAINAGE IMPROVEMENT WORKS TO ALLEVIATE THE RISK OF FLOODING.

FOUR PRIVATE AGRICULTURAL LOTS WITH A TOTAL AREA OF 708.9 SQUARE METRES IN TSEUNG KWAN O, SAI KUNG WILL BE RESUMED FOR THE CONSTRUCTION OF A POWER SUB-STATION.

WORKS FOR THE TWO PROJECTS ARE SCHEDULED TO START IN SEPTEMBER AND JUNE RESPECTIVELY.

THE LAND WILL BE REVERTED TO THE GOVERNMENT THREE MONTHS AFTER THE RESUMPTION NOTICES WERE PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY).

--------0-----------

SAFETY AWARENESS IMPORTANT TO WORKERS ******

THE OCCUPATIONAL SAFETY AND HEALTH COUNCIL AND RELEVANT GOVERNMENT DEPARTMENTS ARE JOINTLY CONDUCTING A FEASIBILITY STUDY ON THE POSSIBILITY OF INCORPORATING INFORMATION ON WORK SAFETY AND HEALTH INTO TEXTBOOKS WITH A VIEW TO PUBLICISE ITS IMPORTANCE TO POTENTIAL WORKERS.

THIS WAS STATED BY THE CHAIRMAN OF THE OCCUPATIONAL SAFETY AND HEALTH COUNCIL (OSHC), PROFESSOR LEUNG PING-CHUNG, TODAY (FRIDAY) WHEN ADDRESSING THE PRIZE-PRESENTATION CEREMONY OF THE SAFETY AT WORK POSTER DESIGN COMPETITION.

PROFESSOR LEUNG SAID: "THE PROMOTION OF SAFETY AWARENESS IS A STRENUOUS AND LONG-TERM TASK.

"GOOD SAFETY AWARENESS HAVE TO BE CULTIVATED DURING A PERSON’S GROWTH SO THAT IT WILL BECOME A WORKING HABIT AND ATTITUDE WHEN HE GROWS UP.

"BY ADDING INTO TEXTBOOKS INFORMATION ON WORK SAFETY AND HEALTH, IT WILL BE OF GREAT HELP IN THE PREVENTION OF INDUSTRIAL ACCIDENTS IN THE LONG RUN."

THE SAFETY AT WORK POSTER DESIGN COMPETITION IS ORGANISED JOINTLY BY THE LABOUR DEPARTMENT, THE EDUCATION DEPARTMENT AND THE HONG KONG ASSOCIATION OF CAREERS MASTERS AND GUIDANCE MASTERS, AND SPONSORED BY THE OCCUPATIONAL SAFETY AND HEALTH COUNCIL.

/ORGANISED TN .......

FRIDAY, MARCH 19, 1993

- 15 -

ORGANISED IN VARIOUS FORMS SINCE 1988, THE COMPETITION IS ONE OF THE HIGHLIGHTS OF THE SUMMER JOB SAFETY PUBLICITY DRIVE TO ENHANCE SAFETY AWARENESS AMONG STUDENTS AND THEIR FAMILIES.

A TOTAL OF 531 ENTRIES FROM 39 SCHOOLS WERE RECEIVED IN THIS YEAR’S COMPETITION.

SOME 3,000 COPIES OF THE TOP WINNING ENTRY HAVE BEEN PRODUCED FOR DISTRIBUTION TO STUDENTS THROUGH SCHOOLS.

ALSO OFFICIATING AT THE CEREMONY ARE THE CHIEF FACTORY INSPECTOR OF THE LABOUR DEPARTMENT, MR CHAN TAT-KING; ASSISTANT DIRECTOR OF EDUCATION (SERVICES), MRS GRACE YUNG; CHAIRMAN OF HONG KONG ASSOCIATION OF CAREERS MASTER AND GUIDANCE MASTERS, MR CHAN JOE-CHAK; AND THE CHAIRMAN OF THE ADJUDICATION PANEL FOR THE COMPETITION, MR CHEUNG LUN.

THE PRIZE-WINNERS OF THE COMPETITION ARE:

SENIOR SECTION:

FIRST PRIZE

SECOND PRIZE

THIRD PRIZE

CHEUNG HO-KEUNG OF CMA PREVOCATIONAL SCHOOL

CHAN HIU-YAN OF KWUN TONG GOVERNMENT SECONDARY SCHOOL

WONG WING-MAN OF S T F A TAM PAK YU COLLEGE

JUNIOR SECTION:

FIRST PRIZE : TO YEE-WAH OF KWUN TONG GOVERNMENT

SECONDARY SCHOOL

SECOND PRIZE : CHUI CHI-MAN OF KWUN TONG GOVERNMENT

SECONDARY SCHOOL

THIRD PRIZE : LAU KA-HANG OF WONG SHTU CHI SECONDARY SCHOOL

FIRE SERVICES HOST INTER-DEPARTMENTAL RACE

*****

ABOUT 1,000 STAFF MEMBERS FROM 50 GOVERNMENT DEPARTMENTS WILL COMPETE IN AN ANNUAL INTER-DEPARTMENTAL RACE IN SHA TIN TOMORROW (SATURDAY).

THE RACE, ORGANISED BY THE FIRE SERVICES DEPARTMENT, WILL START AT 9 AM FROM THE SHA TIN FIRE STATION. IT WILL BE RUN THROUGH THE SHING MUN RIVER PROMENADES AND FINISHING AT THE FIRE STATION.

/THE RACE ........

FRIDAY, MARCH 19, 1993

- 16 -

THE RACE IS DIVIDED INTO TWO SECTIONS - INDIVIDUAL SECTION FOR MEN, LADIES AND VETERANS, AND TEAM SECTION FOR DEPARTMENTS.

THE DISTANCE FOR MEN PARTICIPANTS IS NINE KILOMETRES AND FOR LADIES 5.5 KILOMETRES.

OFFICIATING GUESTS WILL BE THE SECRETARY FOR THE CIVIL SERVICE, MR BARRIE WIGGHAM; LEGISLATIVE COUNCILLOR, MRS MIRIAM LAU KIN-YEE; THE COMMISSIONER OF POLICE, MR LI KWAN-HA; THE DIRECTOR OF IMMIGRATION, MR LAURENCE LEUNG MING-YIN; THE ASSISTANT COMMISSIONER OF CUSTOMS AND EXCISE, MR TONG HIN-YEUNG; AND THE DIRECTOR OF FIRE SERVICES, MR LAM CHEK-YUEN.

ATTENTION NEWS EDITORS:

YOUR REPRESENTATIVES ARE INVITED TO COVER THE EVENT WHICH STARTS OFF FROM THE SHA TIN FIRE STATION ON YUEN WO ROAD, NEAR THE JUBILEE SPORTS CENTRE, AT 9 AM TOMORROW (SATURDAY).

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HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS ♦ t *

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,280

REVERSAL OF LAF +870

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJECTION/WITHDRAWAL TODAY NIL

EFFECT OF LAF TODAY -500

CLOSING BALANCE IN THE ACCOUNT 1,650

LAF RATE 2.00 BID/4.00 OFFER TWI 113.6 *-0.4* 19.3.93

/HONG KONG ........

»

FRIDAY, MARCH 19, 1993

17 -

HONG KONG GOVERNMENT EXCHANGE FUND

EF BILLS HONG KONG GOVERNMENT BONDS

TERMS YIELD TERM ISSUE COUPON PRICE YIELD

1 WEEK 2.50 PCT 14 MONTHS 2405 5.50 102.26 3.52

1 MONTH 2.74 PCT 17 MONTHS 2408 5.50 101.18 3.54

3 MONTHS 2.86 PCT 20 MONTHS 2411 4.375 101.47 3.73

6 MONTHS 3.13 PCT 23 MONTHS 2502 4.625 101.52 3.95

12 MONTHS 3.44 PCT

TOTAL TURNOVER OF BILLS AND BONDS - 25.776N

CLOSED 19 MARCH 1993

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Received by FRO on-7VMRW3

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SATURDAY, MARCH 20, 1993

VITAL ROLE FOR WOMEN IN FIGHT AGAINST AIDS ..................

INSURANCE AGENT FINED FOR TAX EVASION

CNTA HANDLES OVER 9.6 MILLION CASES IN 1992

CALL FOR MORE FOSTER PARENTS ....................

CHEST CLINIC ON MOVE .............................

FIRING PRACTICE IN APRIL ........................

HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS

5

SATURDAY, MARCH 20, 1993

1

VITAL ROLE FOR WOMEN IN FIGHT AGAINST AIDS

******

WOMEN CAN HAVE A STRONG INFLUENCE ON THE ATTITUDE OF SOCIETY TOWARDS AIDS PATIENTS AND IN PROMOTING WAYS TO PREVENT THE DISEASE, THE SECRETARY FOR HEALTH AND WELFARE, MRS ELIZABETH WONG, SAID.

"THE IMPORTANCE OF WOMEN IN THE FIGHT AGAINST AIDS IS EVEN MORE CRUCIAL WHEN WE THINK OF A WOMAN’S ROLE IN THE FAMILY WHICH IS THE BASIC UNIT OF CARING IN OUR SOCIETY," SHE ADDED.

SPEAKING AT THE "WOMEN AND AIDS" SEMINAR ORGANISED BY THE HONG KONG AIDS FOUNDATION AND THE HONG KONG ASSOCIATION OF BUSINESS AND PROFESSIONAL WOMEN TODAY (SATURDAY), MRS WONG SAID AIDS AFFLICTED PHYSICAL AND PSYCHOLOGICAL SUFFERING ON THE INDIVIDUAL.

"MORE THAN THAT, THE PAIN IS OFTEN FELT BY THE ENTIRE FAMILY: NOT LEAST THE BURDEN OF A CHRONICALLY ILL FAMILY MEMBER AND THE TRAUMA OF DISCRIMINATION AND ALIENATION.

"AIDS IS A CHALLENGE TO THE INTEGRITY OF A FAMILY. IT IS NOT DIFFICULT TO IMAGINE THE SUFFERING FOR THE MOTHER IN PARTICULAR."

MRS WONG POINTED OUT THAT PATIENTS WHO HAD AN INTACT FAMILY AND WHO WERE WELL BACKED BY OTHER MEMBERS, WERE OFTEN BETTER ABLE TO DEAL WITH THE PHYSICAL, SOCIAL AND PSYCHOLOGICAL STRESS OF THE DISEASE.

"THE IMPORTANCE OF THE MOTHER IS PARAMOUNT," SHE STRESSED, ADDING THAT A GOOD AIDS EDUCATION PROGRAMME SHOULD START IN THE FAMILY BECAUSE CHILDREN AND ADOLESCENTS LEARN AS THEY GROW AND THIS LEARNING PROCESS IS INITIATED IN THE FAMILY AND CONSOLIDATED IN SCHOOLS.

QUOTING A RECENT SURVEY, MRS WONG SAID OVER 90 PER CENT OF THE RESPONDENTS INDICATED THEY HAD VIEWED AIDS ADVERTISEMENTS ON TELEVISION AND OVER 70 PER CENT REMARKED THAT THEIR AIDS KNOWLEDGE HAD IMPROVED AS A RESULT.

"THIS IS A GOOD START," SHE SAID. "PUBLICITY THROUGH THE MEDIA SHOULD PROVIDE A GOOD OPPORTUNITY FOR THE FAMILY TO TALK ABOUT AIDS, AND FOR PARENTS TO IMPRESS UPON CHILDREN THE RIGHT ATTITUDE AND BEHAVIOR, AS THEY RELATE TO THE DISEASE."

THE SECRETARY FOR HEALTH AND WELFARE ALSO NOTED THAT EIGHT CASES OF HIV INFECTED WOMEN WERE REPORTED LAST YEAR, COMPARED WITH 10 KNOWN CASES FROM 1985 TO 1991.

"THIS IS A WORRYING TREND, AND EVEN MORE FRIGHTENING TO THINK THAT WIVES ARE BEING INFECTED THROUGH THEIR HUSBANDS," SHE SAID.

THE MAIN SOURCES OF INFECTION WERE THROUGH SEXUAL INTERCOURSE, TRANSFUSION OF CONTAMINATED BLOOD OR BLOOD PRODUCTS, SHARING NEEDLES FOR DRUG INJECTION AND PERI NATALLY FROM AN INFECTED MOTHER TO HER OFFSPRING.

/BUT SHE ........

SATURDAY, MARCH 20, 1993

- 2 -

BUT SHE WAS QUICK TO ADD THAT PERSON COULD NOT GET AIDS FROM NORMAL DAY-TO-DAY CONTACTS WITH HIV-INFECTED PERSONS, SUCH AS FROM SHAKING HANDS OR HUGGING, HAVING MEALS TOGETHER, WORKING IN THE SAME OFFICE OR FACTORY, OR ATTENDING THE SAME SCHOOL.

RECOUNTING THE ESSENTIAL GROUNDWORK THE GOVERNMENT HAS DONE OVER THE PAST FEW YEARS IN COMBATTING AIDS, MRS WONG SAID TIME HAD COME FOR THE COMMUNITY TO ADOPT A LEADERSHIP ROLE TO OVERCOME THE PREJUDICE AND DISCRIMINATION AGAINST HIV PATIENTS.

"THE HEALTH AND WELFARE BRANCH AND THE DEPARTMENT OF HEALTH HAVE THEREFORE DEDICATED 1993 TO BE THE YEAR OF A CAMPAIGN TO COMBAT AIDS IN DIFFERENT WAYS," SHE SAID.

"WE WILL THIS YEAR PUT IN PLACE PLANS FOR A MAJOR PUBLICITY' AND EDUCATION CAMPAIGN, AND FOR SUSTAINING THIS EFFORT IN COMING YEARS," MRS WONG SAID.

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INSURANCE AGENT FINED FOR TAX EVASION

*****

AN INSURANCE AGENT AND HIS YOUNGER BROTHER WERE FOUND GUILTY IN THE WESTERN MAGISTRACY OF MAKING A FALSE CLAIM OF SUB-AGENTS1 SALARIES WITH WILFUL INTENT TO EVADE TAX.

THE FIRST DEFENDANT, MR LAU YIU-CHEUNG, AGED 35, IS AN INSURANCE AGENT, TRADING IN THE NAME OF CASEY LAU & COMPANY. HE WAS CHARGED WITH MAKING FALSE CLAIMS IN HIS TAX RETURNS.

THE SECOND DEFENDANT MR LAU YIU-MING, THE YOUNGER BROTHER, AGED 29, WAS CHARGED WITH AIDING AND ABETTING THE FIRST DEFENDANT.

THEY DENIED FIVE CHARGES OF TAX EVASION AND WERE CONVICTED AFTER TRIAL BEFORE MAGISTRATE MR G A ANDREE WILTENS.

MR LAU YIU-CHEUNG WAS FINED A TOTAL OF $80,000 AND WAS SENTENCED TO ONE MONTH’S IMPRISONMENT, SUSPENDED FOR 18 MONTHS.

MR LAU YIU-MING WAS ORDERED TO PAY $22,500 TN FINE AND SENTENCED TO ONE MONTH’S IMPRISONMENT, SUSPENDED FOR 18 MONTHS.

A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT TODAY (SATURDAY) REMINDED THE PUBLIC THAT TAX EVASION WAS A CRIMINAL OFFENCE.

UNDER THE INLAND REVENUE ORDINANCE, A TAX EVADER IS LIABLE TO A MAXIMUM SENTENCE OF THREE YEARS’ IMPRISONMENT AND A FINE OF $20,000 ON EACH CHARGE, IN ADDITION TO A FURTHER FINE EQUIVALENT TO THREE TIMES THE AMOUNT OF TAX UNDERCHARGED.

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/3 .........

SATURDAY, MARCH 20, 1993

- 3

CNTA HANDLES OVER 9.6 MILLION CASES IN 1992 *****

THE CITY AND NEW TERRITORIES ADMINISTRATION (CNTA) HANDLED MORE THAN 9.6 MILLION CASES AND ENQUIRIES LAST YEAR.

THE 20 PUBLIC ENQUIRY SERVICE CENTRES (PESCS) LOCATED THROUGHOUT THE TERRITORY HANDLED 9,498,480 ENQUIRIES WHILE THE REMAINDER, 150,682 ENQUIRIES, WERE RECEIVED BY THE CENTRAL TELEPHONE ENQUIRY CENTRE (CTEC).

THE CTEC WAS SET UP IN APRIL 1991 AT CNTA’S HEADQUARTERS IN WAN CHAI TO BACK UP THE SERVICES PROVIDED BY THE PESCS AT DISTRICT LEVEL.

TOPPING THE LIST OF ENQUIRIES WAS DECLARATION SERVICE (196,844), FOLLOWED BY SUBJECTS ON OTHER MATTERS SUCH AS LOCATIONS, TELEPHONE NUMBERS AND OPENING HOURS OF GOVERNMENT OFFICES (168,670) AND THOSE SEEKING INFORMATION ON OTHER NON-GOVERNMENT BODIES ( 151,264) .

THE PESCS ALSO ADMINISTERED A TOTAL OF 470,925 DECLARATIONS, OATHS AND AFFIRMATIONS, INCLUDING THOSE FOR EMIGRATION OR OVERSEAS VISITS (145,482), SUBMISSION TO NON-GOVERNMENT BODIES FOR A VARIETY OF PURPOSES (142,954) AND OVERSEAS EXAMINATIONS OR SCHOOLING ( 1 13,067 ) .

IN ADDITION, 6,169,597 FORMS AND OTHER INFORMATION SHEETS WERE DISTRIBUTED TO THE PUBLIC LAST YEAR.

THEY INCLUDED APPLICATION FORMS FOR CIVIL SERVICE EMPLOYMENT (366,124), HOME OWNERSHIP SCHEME (206,327) AND REGISTRATION ON THE PUBLIC HOUSING WAITING LIST (151,557).

UNDER THE FREE LEGAL ADVICE SCHEME, A TOTAL OF 2,633 CASES WERE REFERRED TO THE HONG KONG LAW SOCIETY DURING THE PAST YEAR WITH 2,324 CASES HANDLED BY VOLUNTARY SOLICITORS AND 124 CASES REFERRED TO THE LEGAL AID DEPARTMENT.

INTRODUCED IN 1978, THIS SERVICE IS BEING OFFERED IN FIVE OF THE DISTRICT OFFICES (WAN CHAI, YAU TSIM, KWUN TONG, TSUEN WAN AND SHA TIN).

DURING THE SAME PERIOD, THE RENT OFFICERS OF THE RATING AND VALUATION DEPARTMENT HANDLED 15,118 ENQUIRIES ON MATTERS RELATING TO RENTAL AND TENANCY PROBLEMS.

THE RENT OFFICER SCHEME, ALSO IMPLEMENTED IN 1978, IS BEING OPERATED AT 10 URBAN DISTRICT OFFICES AND FIVE DISTRICT OFFICES IN THE NEW TERRITORIES.

MEMBERS OF THE PUBLIC WHO WISH TO KNOW MORE ABOUT THE VARIOUS SERVICES PROVIDED BY CNTA MAY APPROACH ANY OF THE PESCS WHICH ARE LOCATED AT THE DISTRICT OFFICES OR CALL THE CTEC ON TEL 835 2500.

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/4 ........

SATURDAY, MARCH 20, 1993

4 CALL FOR MORE FOSTER PARENTS * * * * *

A SPOKESMAN FOR THE SOCIAL WELFARE DEPARTMENT TODAY (SATURDAY) APPEALED TO COUPLES TO JOIN THE TEAM OF FOSTER PARENTS.

’’WHILE SOME FAMILIES ARE PLANNING THEIR ’FAMILY DAY’ IN THE COMING PUBLIC HOLIDAYS, THERE ARE SOME OTHER CHILDREN IN NEED OF PARENTAL LOVE AND CARE,” THE SPOKESMAN SAID.

FOSTER CARE IS A FORM OF NON-INSTITUTIONAL RESIDENTIAL CHILD CARE SERVICE WHICH AIMS TO PROVIDE A TEMPORARY ALTERNATIVE FAMILY FOR ORPHANS OR CHILDREN WHO LACK ADEQUATE FAMILY CARE BECAUSE OF NEGLECT, ILLNESS OF PARENTS OR OTHER SOCIAL PROBLEMS.

THROUGH FOSTERING, CHILDREN CAN GROW UNDER A PROPER FAMILY SETTING AND ENJOY HAPPY CHILDHOOD, HE SAID.

’’FOSTER PARENTS CAN, ON THE ONE HAND, SERVE THE COMMUNITY AND ON THE OTHER, POLISH THEIR PARENTHOOD SKILLS,” HE SAID.

TO FURTHER PROMOTE THE FOSTER CARE SERVICES, A SERIES OF NINE ROVING EXHIBITIONS WILL BE HELD AT PUBLIC HOUSING ESTATES IN VARIOUS DISTRICTS.

THE FIRST EXHIBITION WILL BE STAGED AT LEI TUNG ESTATE ON AP LEI CHAU NEXT TUESDAY AND WEDNESDAY.

THE EXHIBITIONS WILL FEATURE DISPLAY BOARDS, VIDEO SHOWS AND BRIEFINGS.

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CHEST CLINIC ON MOVE *****

THE CHEST CLINIC AT SHATIN CLINIC AND MATERNITY HOME WILL MOVE TO THE YUEN CHAU KOK CHEST CLINIC AT 29 CHAP WAI KON STREET, SHA TIN ON MARCH 31 (WEDNESDAY).

ANNOUNCING THE RELOCATION, A SPOKESMAN FOR THE DEPARTMENT OF HEALTH SAID TODAY (SATURDAY) THAT AFTER THE MOVE, THE CHEST CLINIC WOULD CONTINUE TO OPERATE ON THE FOLLOWING TWO DAYS EVERY WEEK:

» WEDNESDAY 8.30 AM TO 12.45 PM, AND

1.45 PM TO 4.45 PM

* FRIDAY 8.30 AM TO 12.45 PM

THE CLINIC WILL BE CLOSED ON ALL OTHER DAYS AND PUBLIC HOLIDAYS.

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/5 .........

SATURDAY, MARCH 20, 1993

5

FIRING PRACTICE IN APRIL

*****

FIRING PRACTICE WILL TAKE PLACE AT THE HA TSUEN - CASTLE PEAK RANGE ON NINE DAYS NEXT MONTH (APRIL).

THE PUBLIC ARE ADVISED NOT TO ENTER THE AREA WHEN RED FLAGS ARE HOISTED.

FOLLOWING ARE THE DATES AND TIMES FOR THE FIRING PRACTICE:

DATE TIME

APRIL 13 (TUESDAY) 8.30 AM - 5 PM

APRIL 14 (WEDNESDAY) 8.30 AM - 5 PM

APRIL 15 (THURSDAY) 8.30 AM - 5 PM

APRIL 16 (FRIDAY) 8.30 AM - 5 PM

APRIL 26 (MONDAY) 8.30 AM - 5 PM

APRIL 27 (TUESDAY) 8.30 AM - 5 PM

APRIL 28 (WEDNESDAY) 8.30 AM - 5 PM

APRIL 29 (THURSDAY) 8.30 AM - 5 PM

APRIL 30 (FRIDAY) 8.30 AM - 5 PM

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HONG KONG GOVERNMENT EXCHANGE FUND MONEY MARKET OPERATIONS *****

$ MILLION

OPENING BALANCE IN THE ACCOUNT 1,650

REVERSAL OF LAF +500

BALANCE AFTER REVERSAL OF LAF 2,150

NET INJF.CT ION/WI THDRAWAL TODAY NIL

EFFECT OF LAF TODAY -1,020

CLOSING BALANCE IN THE ACCOUNT 1,130

LAF RATE 2.00 B1D/4.00 OFFER TWI 113.6 *+0.0* 20.3.1993

Received by PRO on 2 4 MAR 1993

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 842 8777

SUNDAY, MARCH 21, 1993

CONTENTS PAGE NO.

STAMPS ON CHINESE STRING MUSICAL INSTRUMENTS .................... 1

CSD TO TAKE OVER ESCORT DUTIES FROM POLICE ...................... 1

ACTIVITIES FOR DISABLED HELD AS SCHEDULED ....................... 2

ARTS POLICY REVIEW REPORT RELEASED FOR CONSULTATION ............. 3

TAPED BRIEFING ON SOCIAL SECURITY ............................... 3

SCHOOL MANAGEMENT INITIATIVE LEAFLETS ........................... 5

COURSES AND SEMINARS FOR TEACHERS

6

SUNDAY, MARCH 21, 1993

1

STAMPS ON CHINESE STRING MUSICAL INSTRUMENTS

*****

THE POSTMASTER GENERAL, MR M PAGL1ARI, ANNOUNCED TODAY (SUNDAY) THAT A SET OF SPECIAL STAMPS ON THE THEME OF "CHINESE STRING MUSICAL INSTRUMENTS" WILL BE ISSUED ON APRIL 14.

THERE WILL BE FOUR DENOMINATIONS: 80 CENTS, $1.80, $2.30 AND

$5. THE STAMPS WERE DESIGNED BY MRS SUMIKO DAVIES AND PRINTED BY LEIGH-MARDON PTY LIMITED OF AUSTRALIA.

THE STAMPS WILL BE DISPLAYED FOR ADVANCE INFORMATION OF THE PUBLIC AT THE GENERAL POST OFFICE, TSIM SHA TSUI POST OFFICE AND SHA TIN CENTRAL POST OFFICE FROM APRIL 1.

OFFICIAL FIRST DAY COVERS WILL BE PLACED ON SALE AT ALL POST OFFICES, EXCEPT THE AIRPORT POST OFFICE, FROM APRIL 1 AT $1 EACH.

ADVANCE ORDERS FOR SERVICED FIRST DAY COVERS WILL BE ACCEPTED FROM APRIL 1 TO 7. THE MINIMUM NUMBER OF COVERS PER ORDER IS FIVE.

A RESTRICTION OF TWO SHEETS (50 STAMPS EACH SHEET) OF STAMPS OF EACH DENOMINATION PER CUSTOMER QUEUING WILL BE IMPOSED ON THE FIRST DAY OF ISSUE.

FOR THE CONVENIENCE OF CUSTOMERS, FIRST DAY COVERS PRE-AFFIXED WITH A SET OF STAMPS AND CANCELLED WITH THE FIRST-DAY-OF-ISSUE POSTMARK WILL BE AVAILABLE AT $12.90 EACH AT THE FOLLOWING SIX PHILATELIC OFFICES:

BEACONSFIELD HOUSE POST OFFICE GENERAL POST OFFICE GRANVILLE ROAD POST OFFICE PEAK POST OFFICE SHA TIN CENTRAL POST OFFICE TSIM SHA TSUI POST OFFICE

A HAND-BACK SERVICE WILL BE GIVEN TO ALL OFFICIAL AND PRIVATELY MADE COVERS BEARING THE "FIRST DAY" INDICATION ON APRIL 14 AT ALL POST OFFICES EXCEPT THE AIRPORT POST OFFICE.

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C