Daily Information Bulletin - 1990s - 1995 - JUL - ENG

 DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Saturday, July 1,1995

Contents Page No,

D-G of Trade to lead delegation to APEC meeting in Sapporo............... 1

Public and private hospitals complement each other....................... 2

Employment agencies warned against overcharging.......................... 2

Appeals to Social Security Board dropped................................. 3

Sir David Trench Fund Committee invites applications for grants...... 4

Music Camp for youth..................................................... 5

Firing practice scheduled for three days in July......................... 6

Flushing water cut in Kowloon Tong....................................... 6

Hong Kong Monetary Authority money market operations..................... 7

1

D-G of Trade to lead delegation to APEC meeting in Sapporo *****

The Director-General of Trade, Mr Tony Miller, will lead a Hong Kong delegation to the second Senior Officials Meeting for the 7th Ministerial Meeting of the Asia Pacific Economic Co-operation (APEC) to be held in Sapporo, Japan, from July 6 to 8.

The meeting is to follow up on the first Senior Officials Meeting held in Fukuoka^ Japan, in February this year.

Senior Officials of APEC Economies will continue to work on drawing up an "action agenda" for realising the goal of free and open trade and investment in the region by the year 2020.

The free trade goal was promulgated by the 18 Economic Leaders of APEC at their meeting in Bogor, Indonesia, in November last year.

The meeting will be preceded by the Committee on Trade and Investment Meeting to be held from July 2 to 3, and a series of sub-committee and experts meetings. Hong Kong will chair the Experts Meeting on Government Procurement.

Members of the Hong Kong delegation comprise officials from the Trade and Industry Branch, Financial Services Branch, Hong Kong Economic and Trade Office in Tokyo, Industry Department, Customs and Excise Department, Department of Health, Information Technology Services Department, Government Supplies Department and the Trade Department.

Member economies of APEC are Australia, Brunei Darussalam, Canada, Chile, the People's Republic of China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Chinese Taipei, Thailand and the United States.

End/Saturday, July 1, 1995

2

Public and private hospitals complement each other ♦ ♦ ♦ ♦ ♦

The acting Chief Secretary, Mr Michael Suen, said although public and private hospitals played different roles, they complemented each other by providing patients with more comprehensive and cost-effective medical services.

Officiating at the opening ceremony of the Sha Tin Union Hospital today (Saturday), Mr Suen said private hospitals, like the public ones, had to fully utilise their resources. They both satisfy public needs for medical services and bear a social responsibility.

He hoped the Sha Tin Union Hospital would provide a patient-oriented service to ensure patients’ rights were respected.

Mr Suen said patients should be told clearly information such as the course of treatment and charges. They will then feel more reassured and confident in receiving treatment.

A misunderstanding that private hospitals are purely profiteering organisations can also be removed.

Sha Tin Union Hospital is the first private hospital in the eastern New Territories.

End/Saturday, July 1, 1995

Employment agencies warned against overcharging ♦ ♦ ♦ ♦ ♦

Operators of employment agencies should not engage in unlicensed operation, nor should they overcharge job applicants upon successful placements.

’’Each employment agency operator must obtain a licence from the Labour Department at least one month before starting business,” Labour Officer (Employment Agencies Administration), Miss Corrina Cheng, said today (Saturday).

The existing licence fee for an employment agency is $1,400 and $280 for a branch office.

3

The licence and fee schedule issued by the department should be displayed in a conspicuous position at the place of business.

’’Under the Employment Agency Regulations, an employment agency is not allowed to charge a job applicant more than 10 per cent of his first month's salary as commission upon successful placement," Miss Cheng said.

"Charging any other fees such as registration fee is also prohibited," she added.

Operating an employment agency without a valid licence or overcharging a jobseeker is an offence under the law. The maximum penalty for each offence is $25,000.

An updated list of employment agencies in Hong Kong is available for public reference at the Employment Agencies Administration on the 12th floor, Harbour Building, 38 Pier Road, Central.

Enquiries on the operation of employment agency can be made to the Employment Agencies Administration on 2852 3535 or 2852 3540.

End/Saturday, July 1, 1995

Appeals to Social Security Board dropped *****

The Social Security Appeal Board received a total of 115 appeals in 1994-95, representing a decrease of 22 cases, or 16 per cent, as compared with the preceding year.

Of the 115 appeals, 25 were Comprehensive Social Security Assistance cases, 87 were Social Security Allowance cases, and three were Traffic Accident Victims Assistance Scheme related, according to the latest annual report of the Social Security Appeal Board.

"All appeals were heard by members of the Board who arc all unofficials appointed by the Governor," a spokesman for the Board said today (Saturday).

"They act as an independent body to provide a means of redress for persons who are not satisfied with the decision of the Social Welfare Department in respect of eligibility and payment of social security benefits."

4

The Board had so far heard 70 cases for the year and another 51 cases brought forward from the preceding years.

Of these 121 appeals heard during the year, the Board confirmed the decisions of the Social Welfare Department in 55 cases and varied its decisions in 66 cases.

To keep members of the public well aware of the work of the Board, posters about the Appeal Board are displayed at the Department's 32 social security field units throughout the territory as well as the Traffic Accident Victims Assistance Section. Leaflets are also available for collection at these offices.

Furthermore, whenever a person is notified in writing by the SWD of the result of his application for social security benefits, he is also informed of his right to appeal to the Board if he is dissatisfied with its decision.

End/Saturday. July 1, 1995

Sir David Trench Fund Committee invites applications for grants *****

The Sir David Trench Fund Committee is now inviting organisations to apply for grants under a new project called the "Recreation and Sports Activities for people in employment".

The scheme aims to provide financial assistance to organisations for the purchase of equipment and thereby facilitating the arrangement of recreational and sports activities for people at work.

The applicant must be registered as a trade union or under the Societies Ordinance or the Companies Ordinance and non-profit making.

Staff clubs of organisations or companies may also apply.

Any purchase made prior to an application being approved will not be entertained.

Application forms are now available at the Secretariat of Sir David Trench Fund Committee; the Hong Kong Council of Social Service; Social Welfare Department and the District Offices of the I fome Affairs Department.

5

All completed application forms should be sent to the Secretariat of the Sir David Trench Fund Committee, Recreation and Culture Branch, Room 4015, 40th floor, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong on or before August 31 this year.

Enquiries can be made at 2594 5660.

End/Saturday, July I, 1995

Music Camp for youth ♦ ♦ ♦ ♦ ♦

The 1995 Hong Kong Youth Music Camp will be held at the Regional Council's Sai Kung Outdoor Recreation Centre from July 15 to 25.

Organised by the Music Office of the Recreation and Culture Branch and sponsored by the Royal Hong Kong Jockey Club, the camp has become an annual major event since 1980 to provide intensive music training to young musicians.

More than 400 musically talented youngsters will participate in the camp which involves a String Orchestra, two Chinese Orchestras, a Symphony Orchestra, a Youth Choir and a Band.

The campers will receive instruction and guidance from guest musicians from Hong Kong, the United States and China.

They will also receive a variety of training by taking part in orchestral and sectional rehearsals, master classes and demonstration concerts.

In addition, a wide range of recreational activities will be lined up.

To provide young musicians with an opportunity to perform in public, a community concert will be held at Ngau Chi Wan Civic Centre Theatre at 7.30 pm on July 19.

A finale concert will also be held at the Sha Tin Town Hall Auditorium at 8 pm on July 25 to mark the end of the camp.

End/Saturday, July 1, 1995

6

Firing practice scheduled for three days in July *****

Firing practice will take place at the Ha Tsuen/Castle Peak Range on three days this month.

The public is advised not to enter the area when red flags are hoisted.

Following are the dates and times for the firing practice:

Date Time

July 6 (Thursday) July 7 (Friday) July 13 (Thursday) 9 am - 5 pm 9 am - 5 pm 9 am - 5 pm

End/Saturday, July 1, 1995

Flushing water cut in Kowloon Tong

*****

Flushing water supply to some premises in Kowloon Tong will be temporarily suspended from 10 am to 6 pm on Tuesday (July 4) to facilitate water mains connection.

The affected areas will include Chak On Estate, 2-24 Beacon Hill Road, the section of Cornwall Street from Beacon Hill Road to Nam Cheong Street, the City University of Hong Kong and Yau Yat Tsuen.

End/Saturday, July 1, 1995

Hong Kong Monetary Authority money market operations ♦ ♦ ♦ ♦ ♦

$ Million Time (Hours) Cumulative Change ($ Million)

Opening Balance in the account 2,247 09:30 +225

Closing Balance in the account 1,623 10:00 +225

Change Attributable to: 11:00 +225

Money Market Activity +225 11:30 +225

Laf Today -849 15:00

Laf Rate 4.25% Bid/6.25% Offer TWI 118.3 *-0.1* 1.7.95

End/Saturday, July 1, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE. HONG KONG. TEL: 2842 8777

Sunday, July 2,1995

Contents Page No-

The Governor's "Letter to Hong Kong"................................. 1

ACP works forge ahead................................................ 4

Employers must ensure machinery and summer job safety................ 8

Landscaping works in Pat Heung progressing speedily.................. 9

More effective learning underlined............................... 11

Building management course

13

1

The Governor's "Letter to Hong Kong" *****

Following is the full text of Governor the Rt Hon Christopher Patten’s broadcast on RTHK’s "Letter to Hong Kong" today (Sunday):

Two years exactly from this weekend, the fireworks will be lighting up Hong Kong's skies and the flags will be changing over Hong Kong's roof-tops. Two years to the change-over. And just how big a change will it be?

Well, not so great -1 hope and believe - as to cause Hong Kong to stumble. It's a change which Hong Kong should be able to take in its stride. Look at how much bustling change and downright turbulence Hong Kong has survived in the past 50 years. And look where we stand today.

But clearly in these two years, it's important for me, important for my Administration, to do all we can to give Hong Kong the momentum to see it safely through the transition. That means doing everything possible to secure the values and rights and duties enshrined in the Joint Declaration. And it means helping to lay solid foundations for the government of the Special Administrative Region so that it can get off to the best possible start.

So the first thing you should know about our plans for the next two years is that we are going to go on governing - taking decisions, getting things done. We don't intend to put off the tough challenges, the unpopular choices, just because 1997 is coming up fast. That would be fatal for the authority of government. Not particularly the authority of this government, but of government itself. It would corrode the morale of our excellent civil service. It would leave our successors with a bucketful of problems. And which problems ever got easier by putting off doing anything about them?

Second, wherever we can we'll try to cope with these problems in co-operation with those who seek to speak for the interests of our successors in government. I promised that last September and I intend to keep that promise. That is what you expect.

We'll try to work with the Preparatory Committee - and then, necessarily even more closely, with the Chief Executive-designate and his or her team. We've shown our intentions, sensible intentions, with the co-operation we've already launched over the Budget and with the agreement on the Court of Final Appeal.

2

I hope that we can co-operate over as comprehensive a range of issues as possible. But we'll never compromise Hong Kong's long-term interests. There's a substantial difference between seeking co-operation on the one hand and, on the other, abandoning what's right in return for what you hope may be a quiet life.

Third, we've got a substantial body of work to complete. Work in the first place to protect human rights in Hong Kong. Since 1992 we've extended the convention on the rights of the child to Hong Kong, and we're seeking to bring Hong Kong within the ambit of the convention which bans discrimination against women. We've legislated against that sort of discrimination and against discrimination against the disabled. We've allocated more money to promote human rights education here and we've opened up government. We're implementing an administrative code on access to information. We've made the Administration more accountable to the legislature, extended the ombudsman's power to follow up complaints against the government, and brought in pledges of improved performance right across the public services.

The Judiciary are introducing specialist lists for Bill of Rights cases, and we’re providing greater access to legal aid, setting up an independent council to organise the administration of legal aid services. We’ve substantially completed a review of out-of-date potentially repressive laws, including those which could be used to impinge on press freedom. But I have to say, I don't think that the main threat to press freedom today or in the future comes from the law; the insidious danger is self-censorship.

Human rights and freedom - as well as good government - in Hong Kong are also well served by ensuring that the community gets that development of democratic institutions which it has been promised. We've had very successful elections to the District Boards and Municipal Councils - with record voter registration and turn-out. I'm sure that the LegCo elections in September will also go well. There's record voter registration for them, and this year 16 times as many people as last time will be entitled to vote in the functional constituencies. I hope and believe that this broadbased and fairly elected Legislative Council will do a good job for Hong Kong and I pledge that we will work closely with it.

As you'll know, (after all it's the subject of a rather surprising degree of controversy), we've reached a good agreement with China on Hong Kong's Court of Final Appeal. It provides for a decent court, based on the existing principles and practices of the Judicial Committee of the Privy Council. With such a Court, ready to start work on 1 July 1997, on a basis agreed with China, continuity in Hong Kong’s system of justice will be assured. This is an important boost for the future confidence of Hong Kong.

3

The agreement has been attacked by some, not for what it says but for what allegedly the Basic Law - Hong Kong’s written constitution after 1997 - will actually mean for the rule of law in Hong Kong. This is not an argument about the agreement on the Court of Final Appeal; it's an argument about the Basic Law itself. That argument may or may not be good politics. I suspect not. But it is a damaging argument for Hong Kong. Why do I say that? For this simple reason. Any tension between the Basic Law and the common law in Hong Kong has to be dealt with in the courts after 1997. I can't for the life of me see the good in running up the white flag now - as some people seem to be doing - by claiming that the Basic Law will simply punch holes in the common law after 1997. What's the gain for Hong Kong in telling the world that the rule of law is finished here, that that is what the 1990 Basic Law means, when that very rule of law can and will survive provided we continue to have courts which can test it and a community that supports it? I have taken my own modest share of criticism over the past three years for standing up for what I believe to be right for Hong Kong. I haven’t changed. But standing up for Hong Kong doesn’t mean trying to make tomorrow look as black and as bleak as possible in order to make a dubious political point today.

So we'll complete our human rights programme and our programme of social reform, too. I set out a five year programme in 1992. I want to see better provision for the disabled. We are on target with our plans for them. I want to lay the foundation for an income protection scheme for the retired and to complete the comprehensive improvement of services for the elderly. We need better training and retraining - and more emphasis on quality in our schools. We have to sweep away the worst of yesterday's housing, like the older temporary housing areas and the squatter settlements. We will finish the first stage of a decent sewage scheme for Hong Kong, and continue with the task of cleaning up the New Territories.

There's much to do to prepare for '97 itself: developing our language skills and training, continuing with the localisation of the civil service, co-operating with China to tackle cross-border corruption, stepping up our cross-border contacts and our cooperation in infrastructure projects, working flat out to finish as much as possible of the Joint Liaison Group's Agenda.

So in short, two years with much still to do. That's true for us. And true as well for China.

4

True for China because, while I’m sure Hong Kong wants everything to go well after ’97, while Hong Kong wants to make its own contribution to the continuing successful opening up of China, it does need some more reassurance that everything really will be all right, that Hong Kong’s way of life, Hong Kong’s success story will continue.

There are a lot of sceptics around, doubters and pessimists. Here and outside. Given the chance Hong Kong will prove them wrong. But China has to trust Hong Kong with that chance. It's not much to ask. After all, it's what's been promised. And to fulfil Hong Kong's promise for the future it's essential that that promise is kept.

End/Sunday, July 2, 1995

ACP works forge ahead *****

The Airport Core Programme (ACP) is now entering its peak construction stage, with 62 per cent of the Government ACP works completed so far.

"Excellent progress is being made on all 10 of the ACP projects. Overall, including the airport and airport railway, about 35 per cent of the works has been completed," the Director of the New Airport Projects Co-ordination Office, Mr Billy Lam, said today (Sunday).

He said ACP works had forged ahead in the past six months with 42 more major contracts valued at about $23 billion had been awarded.

"The ACP projects are rapidly taking shape and are becoming more visible as the months go by," he said.

Mr Lam said the agreement with the Chinese side last Friday on the financial support agreements for the airport and airport railway and the franchises for the provision of air cargo services for the new airport was a major step forward in the ACP.

"On the basis of the continuing progress of the ACP, we are confident that the seven projects directly funded by the Government together with the Western Harbour Crossing project will be completed before June 30, 1997.

5

"The Provisional Airport Authority’s physical works at the Chek Lap Kok new airport will be substantially complete by mid-1997. Allowing nine months for commissioning, trial operations, and planning the move from Kai Tak, we expect the new airport to be open in April 1998, subject to early conclusion of the remaining key franchises agreements.

"As for the airport railway, works will be substantially complete in April 1998, with opening scheduled in June 1998 after a period of tests and trial running," he said.

. • l • * • • ' ' e *

In a round-up of works progress in the first half of the year, Mr Lam said a number of major milestones had been achieved in the past six months.

lliese included the following:

The new airport

The Provisional Airport Authority (PAA) has awarded a total of 34 major contracts with a total value of over $29.8 billion for the new airport at Chek Lap Kok.

Formation of the 1,248 hectare airport platform was completed in midJune. The platform is about four times the size of the existing airport at Kai Tak. In late January this year, the PAA awarded a $10.1 billion contract, the biggest awarded for the entire ACP, for the construction of the passenger terminal building structure. Construction of the new airport entered a new phase of activity with the award of this contract, work on the new airport has moved from the site formation to the building phase of construction activity.

Work on the new airport is now about 36 per cent complete.

* The Lantau fixed Crossing

The contract for building the 2.2 kilometre Tsing Ma Bridge, one of the two bridges which form the Lantau Fixed Crossing connecting north Lantau to Tsing Yi, is already 76 per cent complete, only 37 months into the five-year contract. In mid-March, aerial spinning of the main span cables was completed on schedule. The construction of the bridge deck is scheduled to begin later this month. The bridge is already becoming a new landmark for Hong Kong.

6

Construction of the Kap Shui Mun Bridge has passed the halfway mark and the first sections of the main deck spans are now being erected. This part of the job began at the end of May with the lifting in place of the first 500-tonne composite steel/concrete section and so far four sections have been lifted.

Overall the Lantau Fixed Crossing is now 66 per cent complete.

* The Airport Railway

Work is now under way on the Hong Kong station of the airport railway following the contract awarded by the MTRC last month. Since November last year when funding approval was given by the Legislative Council, the MTRC has awarded a total of 30 major contracts at a total value of about $17.6 billion to build the 34-kilometre railway linking the new airport to the rest of Hong Kong. Work on the airport railway is now 13 percent complete.

The Hong Kong station is being built underground at the Central Reclamation Phase I. The 20-hectare reclamation project, which has been entrusted to the MTRC, is now 57 per cent complete.

* The Western Harbour Crossing

The first immersed tube tunnel unit for the Western Harbour Crossing, Hong Kong's third cross-harbour road tunnel, was sunk onto the seabed off Sai Ying Pun in mid-March. Since then three more units have been sunk.

The project is now 48 per cent complete.

* The Expressways

Work is moving ahead rapidly on all three expressways in the ACP.

Excavation of the Route 3 Cheung Ching Tunnel was completed in March, two months ahead of schedule. This milestone came only 10 months after the tunnel breakthrough in May last year. The main span deck section of the Rambler Channel Bridge, which forms part of this project, will be completed this month. Work on Route 3 is now 53 per cent complete.

7

Over 76 per cent of the works on the North Lantau Expressway which links the airport and Tung Chung new town to the Lantau Fixed Crossing has been completed.

The West Kowloon Expressway which will run from the Route 3 Kwai Chung Viaduct to the Western Harbour Crossing toll plaza is 47 per cent complete.

* West Kowloon Reclamation

Nearly all reclamation works on the West Kowloon Reclamation project has been completed. The 334 hectare reclamation, the largest ever undertaken in the urban area, has increased the size of the Kowloon peninsula by one-third. The project is now focused on the construction of roads and associated drainage and sewerage systems. Overall, the project is 83 per cent complete.

* Tung Chung new town

Work on the Tung Chung new town on north Lantau is 46 per cent complete and the first Home Ownership Scheme blocks are under construction.

Mr Lam said so far, a total of 144 major contracts valued at $89.7 billion had been awarded under the $158.2 billion ACP by the Government, the PAA, the MTRC and the Western Harbour Tunnel Company Limited.

"These contracts have participants from countries worldwide. Taking the lead are companies from Japan (25 per cent by value), followed by Hong Kong (23 per cent), the United Kingdom (16 per cent), China (8 per cent), the Netherlands (6 per cent) and France (6 per cent).

"Companies from Belgium, New Zealand, Spain, Australia, United States, Germany, Italy, South Africa, Austria, Denmark have also been awarded contracts," Mr Lam said. ■ ’

"Based on the very competitive contract prices we have received under our fair and open tender system and because of the very stringent cost control mechanism we have adopted, we remain confident that the ACP will be completed within the total cost estimate of $158.2 billion announced in early 1994.

8

"Good progress continues to be made on the ACP and we will continue to keep up our efforts in maintaining stringent monitoring of both the progress and the cost of the ACP," he said.

Mr Lam said much effort was also made to keep both the Legislative Council and the Airport Consultative Committee closely informed about the ACP.

"We have submitted two quarterly reports on the ACP to both bodies in the first half of this year and visits to work sites were also arranged for members of both bodies," he said.

End/Sunday, July 2, 1995

Employers must ensure machinery and summer job safety ♦ ♦ ♦ * *

Owners of machinery and employers of summer job workers are reminded to take all possible actions to ensure industrial safety or they will be prosecuted.

Announcing the commencement of this year's Machinery and Summer Job Safety Campaign, Labour Department's Deputy Chief Factory Inspector Mr Tse Ming-sing said today (Sunday): "It is extremely dangerous to leave a machine unguarded or inadequately guarded as even the most experienced operators can make mistakes.

"Dangerous parts of machinery, if not properly guarded, often cause serious accidents resulting in loss of limbs or even deaths," he pointed out.

Mr Tse said although the number of accidents resulting from the use of machinery had been declining from some 8,100 in 1989 to about 2,600 last year, employers have the duty to provide proper maintenance of guards as well as information of potential hazards, supervision and training to machine operators.

"Some machines are particularly dangerous, such as power presses, granulators, dough mixers, machines used in woodwork, paper and catering industries as well as printing and plastics factories," he said.

"Proper guarding of machinery can help avoid injuries at all times and gives confidence to operators," he added.

9

Mr Tse said during the two-month campaign which would start tomorrow, Factory Inspectors would visit workplaces to explain to employers and workers the importance of effectively guarding the dangerous parts of machines as well as ensuring the safety of summer job workers.

”As the legislation prohibiting young persons under the age of 18 and without recognised training to work in construction sites was enacted in June 1994, construction sites will also be visited and contractors advised on the related law and other safety aspects.

"The legislation seeks to better protect young persons because the nature of work in construction sites is far more hazardous than in other trades," he explained.

He also disclosed that in view of the recent spate of incidents involving the use or handling of chemicals,, factory inspectors engaged in the campaign would give proper advice on chemical safety whenever appropriate during their inspections. Prosecutions will be taken out against serious breaches of the Factories and Industrial Undertakings (Dangerous Substances) Regulations.

The Deputy Chief Factory Inspector warned proprietors and employers that the department is determined to take vigorous enforcement action against unscrupulous employers who neglected their statutory obligation to protect workers from potential hazards or allowed untrained young persons to work in construction sites.

He also appealed to all employers and employees for their full co-operation towards making their workplace safe.

End/Sunday. July 2, 1995

Landscaping works in Pat Heung progressing speedily *****

The landscaping works in the Pat Heung Pilot Action Area (PHPAA)are progressing speedily and up to mid-June, 106 sites with an area of about 20,000 square metres have been landscaped by the Task Force Black Spots (TFB) of the Lands Department.

In a progress report submitted to the Special Committee chaired by Dr Samuel Wong, TFB said it would endeavour to landscape all the cleared government land in the PHPAA by the end of October this year.

10

On satisfactory completion, the Landscape Division of the TFB is expected to devote its resources to the North District (East) Action Area next summer.

Furthermore, the Division has proposed a renovation work project for Kam Tin Town area with a view to enhancing the value of this historic rural town as a tourist attraction point in the New Territories.

It is also hoped to set an example of what can be achieved by simple environmental improvements and how the property and hence the land value of the area could be enhanced through proper land management and a better environment.

TFB has initiated discussions with the Kam Tin villagers in liaison with Yuen Long District Office and if the villagers do support the project, it will make a formal request to Yuen Long District Office to co-ordinate the campaign.

It has also submitted two applications under the Town Planning Ordinance as test cases to the Town Planning Board for the carrying out of various environmental improvement works for existing use undertakings and is liaising with relevant government departments on the environmental improvement works.

These works include surface drainage channels, landscaping, proper fencing, improvement to the ingress and egress points.

TFB has started a thorough investigation into the possible relocation areas for both container-related industries and open storage uses.

Five sites zoned for open storage use in Yuen Long district have been examined. They are mostly covered by private land and some of them arc occupied by existing open storage undertakings. The availability of these relocation sites will have to depend on the initiative of the various landowners of the fragmented private lots.

End/Sunday, July 2, 1995

11

More effective learning underlined *****

Hong Kong will benefit from the introduction of Target Oriented Curriculum (TOC) which makes learning more effective, schooling fairer and more rewarding, according to leading educational psychologist Professor John Biggs.

A professor at the Faculty of Education, University of Hong Kong, Professor Biggs specialises in the study of learning outcome. His 'Solo Taxonomy' is known among educational researchers world-wide and has been applied to a lot of research projects in Hong Kong, including a longitudinal study on the Use of Chinese as Medium of Instruction in secondary schools conducted between 1990-92.

Throughout his service in Hong Kong, Professor Biggs has played a key role in the enhancement of learning process among students. He is one of those who agree that the introduction of TOC in Hong Kong's schools can add to that enhancement. •

Professor Biggs said TOC made learning more effective by using the "backwash" effects of testing positively.

"Backwash means that the test determines the nature and quality of teaching and learning. It is a universal fact that students tend to focus their learning according to what they think they will be tested on: the test becomes the curriculum," he explained to participants of a Primary School TOC Initiation Workshop held earlier.

"In the past, backwash has had strong negative effects on both teaching and learning. Teachers second guess the examinations and give students notes and model answers to rote learn. So whatever the official aims of teaching a subject, the fact is students reduce their learning to the lowest cognitive level, because that level is allowed to suffice for testing purposes.

"When students know on what they are going to be assessed, then they make that the target for their learning."

Professor Biggs said TOC identified reasonable targets and gave assessment tasks to see where each student stood with respect to each such target, thus clearly showing what each student was able to do.

"The trick is to use backwash positively. Define quality targets and you get quality learning," he said.

12

Professor Biggs said TOC enabled all students to benefit from learning and each student made progress according to how he learned.

The professor said: "Credit is given when a target is met; that is duly noted in the student’s cumulative record. That record is a statement of what each student has been able to achieve; it is not a statement of what the student has not been able to achieve, nor is it a statement Of how well or how poorly that student compares to others."

He added that TOC was in keeping with what was now known about how students learn and that the setting of definable stages, or "targets", for curriculum and assessment is part of a world-wide trend.

"Knowledge is not a collection of facts but a growing structure based upon facts. Learning grows gradually with time. Students construct their knowledge from their experience; increasingly, understanding interconnects with other topics and subjects and with previous learnings in the same topic," he said.

Professor Biggs is confident that Hong Kong will benefit from TOC.

Professor Biggs is retiring to Sydney this summer after eight years of active service in Hong Kong. He said he would miss his work on the Co-ordination Committee on evaluation of the development of Assessment Mechanism for TOC, on which he had served for nearly a year.

Also leaving the committee on retirement is Dr Siu Ping-kee, Reader at the Chinese University of Hong Kong.

Dr Siu was among the first group of academics and educators appointed to the TOC assessment committee. He has had a lengthy service on the Educational Research Section Policy Committee and has made valuable contributions to a number of major educational research programmes conducted by the Education Department.

End/Sunday, July 2, 1995

13

Building management course ♦ ♦ ♦ ♦ *

A building management course for members of owners’ corporations and mutual aid committees in Sham Shui Po will be held in August.

Organised by the Sham Shui Po District Board’s Housing Committee, with the assistance of the Sham Shui Po Building Management Co-ordination Team, the course covers the introduction of the Building Management Ordinance, the deed of mutual covenant and its enforcement, the finance and insurance of buildings and illegal structures.

Interested parties may obtain an application form from the Sham Shui Po District Office at sixth floor, West Coast International Building, 290-296 Un Chau Street.

Enquiries can be made on 2720 4251 ext 47.

End/Sunday, July 2, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Monday, July 3,1995

Contents

EageJ&L

Government committed to press freedom................................. 1

Work arrangements during rainstorms urged............................. 2

Public Records Office on the move..................................... 3

Results of the 1993 Survey of Transport............................... 4

ED staff awarded for good customer services........................... 7

Water storage figure.................................................. 8

Fresh water cut in Kowloon Tong....................................... 8

Hong Kong Monetary Authority money market operations.................. 9

1

Government committed to press freedom * ♦ ♦ ♦ ♦

Commenting on the second annual report on Freedom of Expression in Hong Kong published by the Hong Kong Journalists Association last Friday (June 30), a Government spokesman affirmed that freedom of expression was vital to a free society.

’’The Government is fully committed to press freedom and to whatever practical measures are necessary to preserve or reinforce it,” he said.

The spokesman noted that the report gave little heed to the substantial progress made in the review of laws affecting press freedom or the granting of access to Government information.

"The review has covered 53 provisions in 27 Ordinances. By the end of this Legislative Council session we expect to have dealt with 42 of these provisions and will be reporting to LegCo on the remaining laws," he said.

The spokesman said the Government firmly believed that the public should be given as much information as possible to enhance understanding of public policies. He did not accept that this could only be achieved by a statutory access to information regime.

"The Government has devised an administrative code which provides a practical and effective access to information system which is well suited to Hong Kong and no less effective than a statutory regime," he said.

The spokesman recognised the growing concern over reports of self-censorship in the media.

He said: "The Government maintains an environment in Hong Kong in which a free and active press can operate under the minimum of regulation - regulation which does not fetter freedom of expression or editorial independence.

"However, Hong Kong people also look to their journalists, editors and newspaper proprietors to stand up for the integrity of their profession now and in the future."

End/Monday, July 3, 1995

4

- 2 -

Work arrangements during rainstorms urged ♦ ♦ ♦ ♦ ♦

Prior agreement on work arrangements and contingency measures in times of rainstorms between employers and employees is important in avoiding unnecessary misunderstanding and disputes.

Senior Labour Officer (Labour Relations Promotion) of the Labour Department, Mrs Bernadette Lai, today (Monday) reminded employers and employees to reach an agreement on work arrangements during inclement weather without delay.

’’Statutory regulations of work arrangements in times of rainstorms would not be practicable because of the diversity in nature and requirements of job in various trades and industries.

’’Therefore, employers are strongly advised to adopt a flexible approach in drawing up work arrangements during inclement weather. Due consideration should be given to employees’ safety in workplace as well as their journey to and from work,” she said.

The Labour Department has published a bilingual booklet entitled ’’Code of Practice in Times of Typhoons and Rainstorms” which serves as a reference guide to facilitate employers and employees to make early work arrangements for inclement weather. This publication is available at various Labour Relations Service offices throughout the territory.

An agreement on work arrangements should normally cover rules regarding report of duty, release from work, resumption of work and wages calculation.

’’The agreement should also state clearly the colour code of rainstorm under which employees are not required to work and the time of issue of such signals when they are not required to report for duty,” Mrs Lai said.

Noting that some industries may require employees to work under the Black Rainstorm Warning, Mrs Lai said that such a requirement should be clearly stated before the employment commences or sufficient notice should be given to the employees.

’’The work arrangements should also include instructions regarding the release of employees when the Red or Black Rainstorm Warning is in force during working hours,” she said.

3

"Employers and employees should also make prior agreements on conditions under which employees should return to work when rainstorm warnings are lowered during working hours."

However, employers are urged to adopt a flexible approach towards resumption of duty as some employees may have difficulties in returning to work.

"As rainstorms are natural calamities, due consideration should also be given to employees who are absent from or late for work so that their earnings, including attendance bonus, are not adversely affected," Mrs Lai said.

Mrs Lai said the Employees’ Compensation Ordinance had been amended to provide compensation to workers who were injured while travelling between their place of residence and their place of work when the Red or Black Rainstorm Warning was issued.

Employers or employees who require assistance arc welcome to approach the nearest Labour Relations Service branch office.

End/Monday, July 3, 1995

Public Records Office on the move

*****

The Public Records Office and its archives at 2 Murray Road, Central, will move to the fifth and sixth floor of Tuen Mun Government Storage Centre, 1 San Yick Lane, Tuen Mun, starting from this week.

The Office will be temporary closed to the public until 2 pm on July 20 to allow time for the packing and unpacking of the archival records, all of which require very careful handling, a spokesman for the Government Records Service said today (Monday).

He said members of the public could make use of the Town Reading Centre on the sixth floor of Central Government Offices, West Wing. Lower Albert Road.

"The Centre holds a good collection of the most popular archival records, and the majority of visitors are likely to be able to readily find what they need there," he said.

The move of the archives to Tuen Mun is a temporary measure pending the completion of a permanent Public Records Building in Kwun l ong in mid-1997.

End/Monday, July 3, 1995

4

Results of the 1993 Survey of Transport ♦ * ♦ ♦ ♦

The business receipts and other income, i.e. total receipts, generated by transport establishments in 1993 amounted to $191.6 billion, representing an increase of 16% over 1992.

Net of operating expenses and compensation of employees, the gross surplus accounted for 13.9% of the total receipts. This was 0.7 percentage point higher than the figure for 1992.

The value added, which is a measure of the sector’s contribution to Hong Kong’s Gross Domestic Product, grew by 11%, from $48.0 billion in 1992 to $53.2 billion in 1993.

These are some of the major findings of the 1993 Survey of Transport and Related Services released today (Monday) by the Census and Statistics Department. The survey was conducted from May 1994 to early 1995.

All value figures in this press release are expressed in current price terms. Percentage changes derived from these figures have not been adjusted for price changes. Caution should therefore be taken in interpreting the survey results.

The operating expenses incurred by transport establishments in 1993 accounted for 72.3% of the total receipts. Compared with 1992, this decreased by 0.6 percentage point.

The compensation of employees accounted for 13.8% of the total receipts. This remained virtually unchanged at the 1992 level.

The survey results showed that some 42,000 transport establishments were in operation in 1993, an increase of 5% over 1992.

Within the transport sector, air transport and land passenger transport accounted for the largest share of value added in 1993, both accounting for 22% of the sector's total. These were followed by ocean and coastal water transport (18%), services incidental to transport (13%) and land freight transport (13%). Supporting services to water transport, inland water transport and supporting services to land transport accounted for the remaining 12%.

Compared with 1992, the share attributed to land freight transport rose by 0.9 percentage point, representing a percentage increase of 7%. This was due to the continued growth in cross-border transport of goods vehicles.

5

The share of total value added attributed to ocean and coastal water transport and services incidental to transport increased by 0.6 and 0.4 percentage point over 1992 respectively. These were mainly brought about by the operation of the first berth of Container Terminal No. 8 since mid 1993 and the continued growth in the business of cargo forwarders.

For inland water transport and supporting services to water transport, both their shares of total value added went up by 0.3 percentage point over 1992. Although these increases in absolute terms were not large, there was considerable percentage growth of 12% and 5% respectively. This was largely contributed by the thriving business of inland water freight transport and haulage of containers.

On the other hand, the share of total value added for air transport decreased by 2.4 percentage points and that for land passenger transport by 0.2 percentage point. The percentage for supporting services to land transport remained generally unchanged.

The attached table compares some selected principal statistics by major transport group for 1992 and 1993.

More detailed results together with the background and methodology of the survey will be given in a full survey report to be published in around August 1995. This report will be on sale in August at the Government Publications Centre of the Information Services Department, Low Block, ground floor. Queensway Government Offices, 66 Queensway, Hong Kong; and the Publications Section of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road. Wan Chai, Hong Kong.

Enquiries regarding the survey results may be directed to the Transport and Miscellaneous Services Statistics Section (Tel 2802 1277).

End/Monday, July 3, 1995

COMPARISON OF SELECTED PRINCIPAL STATISTICS FOR ALL ESTABLISHMENTS IN THE TRANSPORT AND RELATED SERVICES SECTOR BETWEEN 1992 AND 1993

NUMBER NUMBER BUSINESS GROSS

OF OF NUMBER COMPENSA- RECEIPTS ADDITIONS

ESTABLISH- PERSONS OF TION OF OPERATING AND OTHER TO FIXED VALUE GROSS

MAJOR INDUSTRY GROUP MENTS ENGAGED EMPLOYEES EMPLOYEES EXPENSES INCOME ASSETS ADDED SURPLUS

($Mn) ($Mn) ($Mn) ($Mn) ($Mn) ($Mn)

LAND PASSENGER 1993 18 216 51 180 31 635 4,728 7,727 18,013 3,956 11,603 5,558

TRANSPORT 1992 18 092 51 022 31 343 4,190 6,846 15,171 2,121 10,578 4,135

% change + 1 * ♦ 1 + 13 + 13 + 19 ♦ 87 + 10 ♦ 34

LAND FREIGHT 1993 14 868 45 583 29 771 3,428 8,214 14,292 903 6,910 2,651

TRANSPORT 1992 14 081 46 556 30 059 2,843 6,393 11,302 1,211 5,811 2,066

% change + 6 -2 -1 + 21 + 28 + 26 -25 + 19 ♦ 28

SUPPORTING 1993 139 3 836 3 793 438 1,762 2,877 79 1,270 678

SERVICES TO LAND 1992 125 3 425 3 371 328 1,303 2,305 62 1,128 674

TRANSPORT % change *11 + 12 + 13 + 34 *35 + 25 + 27 + 13

OCEAN AND 1993 517 17 643 17 625 3,618 9,809 19,297 2,825 9,731 5,870 1

COASTAL WATER 1992 418 16 729 16 699 3,133 10,303 19,145 1,646 8,470 5,209

TRANSPORT % change *24 + 5 + 6 *15 -9 + 1 + 72 + 15 + 13

INLAl.’D WATER 1993 944 7 105 6 446 829 2,295 4,017 529 1,577 394

TRANSPORT 1992 862 6 938 5 887 698 1,659 2,941 151 1, 271 584

% change + 10 + 2 + 9 + 19 + 38 + 37 ♦ 249 + 24 ♦ 53

SUPPORTING 1993 2 755 13 888 11 293 1,711 6,286 9,188 641 3,334 1,191

SERVICES TO 1992 2 442 12 171 9 977 1,387 5,184 7,584 898 2,857 1,014

WATER TRANSPORT % change + 13 + 14 + 13 + 23 + 21 + 21 -29 ♦ 17 ♦ 17

AIR TRANSPORT 1993 63 22 333 22 333 6,600 18,851 33,103 4,150 11,711 7,652

1992 59 21 229 21 229 6,124 17,093 29,510 4,468 11,709 6,293

% change ♦ 7 + 5 + 5 + 8 + 10 + 12 -7

SERVICES 1993 4 149 40 338 39 448 4,999 83,609 90,794 835 7,080 2,185

INCIDENTAL TO 1992 3 576 37 080 35 535 4,168 71,500 77,656 948 6,171 1,988

TRANSPORT % change + 16 + 9 + 11 + 20 + 17 + 17 -12 + 15 + 10

ALL TRANSPORT 1993 41 650 201 906 162 343 26,352 138,551 191,581 13,917 53,216 26,678

GROUPS 1992 39 655 195 151 154 100 22,870 120,781 165,614 11,506 47,996 21,963

% change *5 + 3 + 5 + 15 + 15 ♦ 16 + 21 + 11 + 21

GOVERNMENT 1993 2 982 982 377 540 3,139 430 2,600 N.A.

TRANSPORT 1992 • 3 1 313 1 313 380 544 2,976 928 2,435 N.A.

-33 -25 -25 -1 -1 + 5 -54 +7 (-)

Notes

(1) Figures denoting changes are derived from unrounded figures.

(2) Individual items may not add up to the corresponding total due to rounding.

(3) Value added is a measure of the contribution of an economic sector to Hong Kong's Gross Domestic Product. The definition can be found in the "Report on 1993 Survey of Transport and Related Services".

(4) ♦ denotes % change less than ±0.5%.

7

ED staff awarded for good customer services • * * ♦ * *

The Director of Education, Mr W K Lam, had recently presented Staff Incentive Awards to five staff members of the Education Department for their outstanding customer services.

' it- iKii.' -‘.‘rrx

The recipients were Mr Wu Pak-keung, Mr Lee Yeuk-hon, Mrs Tam So Man-hung, Ms Lo Kit-yee and Miss Szeto Lai-kuen.

The awards comprised a meritorious certificate and a watch embossed with the department's logo.

In presenting the awards, Mr Lam praised the recipients for their outstanding performance and the efforts they made to serve the public.

Mr Wu is a Senior Assistant Master at Shau Kei Wan Government Secondary School. He was awarded not only for his devotion in teaching, but also for his love and care for his students.

7b.-'- w. <i,. . . . . ' ... t _ __..

His caring clearly illustrated in a recent incident in which a student's father died suddenly and his mother was taken to hospital for a heart attack. He also contributed $2,500 and helped the boy to raise money for his father's funeral.

Mr Wu is named 'Father of the Scouts' by his colleagues and students for his fatherly love towards the scouts and his willingness to devote most of his leisure time to scout activities.

He is the Scout Master of the 81st Hong Kong Group, a large patrol unit with over 80 boy scouts. Under his leadership, the scouts are well-disciplined and well-received by parents and the public.

Mr Lee, a Clerical Officer at Yau Tsim District Education Office, was awarded for his alertness in identifying customers' needs, promptness in offering help and tactfulness in handling enquiries from members of the public.

Mrs Tam, an Assistant Inspector at the Audiological Services Section, was commended for her unpretentious and initiative at work. She is always ready to help, not only to children, but also to their parents and her colleagues.

Another recipient, Ms Lo, is a Clerical Officer at Sir Ellis Kadoorie Secondary School (Sookunpo). She has done exceedingly well in providing customer services to clients in the front-line.

8

She received English speaking customers courteously, mobilised minor staff to maintain a very clean and tidy school environment and inspired her colleagues to adopt a polite and helpful attitude towards clients.

Miss Szeto, Clerical Assistant with the Visual Education Section, was nominated for her initiative to rearrange the index, filing and storage system of the Audio-visual Resources Library, patience in handling requests and enquiries, and willingness and sincerity in providing services to her clients.

End/Monday, July 3, 1995

Water storage figure ♦ ♦ ♦ ♦ ♦

Water storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 67.3 per cent of capacity or 394.600 million cubic metres.

This time last year the reservoirs contained 417.288 million cubic metres of water, representing 71.2 per cent of capacity.

End/Monday, July 3, 1995

Fresh water cut in Kowloon Tong ♦ * * * *

Fresh water supply to some premises in Kowloon Tong will be temporarily suspended from 11 pm on Thursday (July 6) to 7 am the following day to facilitate water mains connection.

The affected areas will include Chak On Estate, 2-24 Beacon Hill Road, the section of Cornwall Street from Beacon Hill Road to Nam Cheong Street and the staff quarters of the City University of Hong Kong.

End/Monday, July 3, 1995

9

Hong Kong Monetary Authority money market operations ♦ ♦ ♦ ♦ ♦

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,623 0930 +888

Closing balance in the account 1,499 1000 +888

Change attributable to: 1100 +898

Money market activity +898 1200 +898

LAF today -1,022 1500 +898

1600 +898

LAF rate 4.25% bid/6.25% offer TWI 118.3 *+0.0* 3.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.31 2 years 2705 6.40 100.90 5.97

1 month 5.37 3 years 3804 6.90 101.79 6.29

3 months 5.46 5 years 5006 6.60 99.01 6.95

6 months 12 months 5.51 5.62 5 years M501 7.90 102.50 7.41

Total turnover of EF bills and notes - $13,600 million

Closed July 3, 1995

End/Monday, July 3, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Tuesday, July 4,1995

Contents Page No,

Transcript of the Chief Secretary’s media session.......................... 1

Development package to improve ferry service approved...................... 2

Unlicensed guesthouse operator fined....................................... 4

Results of the 1993 survey of industrial production........................ 4

Safe system of work for new airport urged.................................. 8

Hong Kong Monetary Authority tender results................................ 9

Hong Kong Monetary Authority money market operations...................... 10

1

I

Transcript of the Chief Secretary’s media session *****

The following is a transcript of the Chief Secretary Mrs Anson Chan's media session after the Executive Council meeting today (Tuesday):

Chief Secretary: I’ve just come back from a very relaxing holiday, but it is great to be back in Hong Kong. I’m even very glad to see you all. I’ve spent the last three days with my husband in Beijing at the invitation of Director Lu. As you all know, I have an invitation from Director Lu to visit China. Unfortunately we weren’t able to agree dates earlier on particularly in view of the controversy surrounding whether the visit will or will not take place. We felt that it would be better for the visit to take place without prior publicity but of course on my return I would let you all, I’ve just also briefed ExCo, know of the visit. I think on this visit I was able not only to have a long discussion with Director Lu and with his two deputy directors but in particular I was very honoured and very happy to be able to meet with Vice-Premier Mr Qian Qichen at Diaoyutai. Both these discussions took place in a very friendly, very cordial and relaxed atmosphere. We covered a range of transitional issues, issues that are of concern to both sides, ranging from the economy to the civil service, the coming establishment of the Preparatory Committee and the CEO designate and his team. I came away from both these visits really feeling very good and very encouraged about the prospect for more positive co-operation between the two sides and in particular for more regular contact at the senior level of the civil service with our Chinese counterparts. Indeed Mr Lu and I agreed that from here on, he and I should be in regular touch and that when senior officials visit Beijing, they should also call on officials in the Hong Kong and Macau Affairs Office. Both Vice-Premier Qian and Director Lu were at pains to reassure me about the importance that they attached to the civil service, their wish to see continuity within the civil service, their wish to see the majority of civil service continuing in office after 1997 and of course subject to the various provisions in the Basic Law and the Joint Declaration as regards the selection of the CEO designate and his responsibility to nominate principal official posts. We also discussed a range of other issues. On the whole, I am extremely glad that this visit has taken place. I am particularly grateful to Director Lu for seeing me and giving me an hour and a half of his time, particularly as you know he has not been well and indeed he came to the meeting from hospital. But he is making good recovery' and I hope very soon that he will be fully well and will return to his desk. 1 greatly look forward to maintaining contact with Director Lu. 1 hope that this will be the first of many other visits to China. I was also extremely encouraged by Mr Qian Qichen’s invitation that I would be welcomed to visit China at any time. So on the whole, an extremely good visit. I will certainly be passing on the reassurances given to me by Mr Qian and by Director Lu to my civil servant colleagues and I am sure that they would also prove re-assuring to my colleagues. Thank you.

Question: Were there any specific agreements ... ?

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Chief Secretary: Let me make it clear both these visits were not negotiating sessions. No deals were made. Rather they were opportunities for myself and for Mr Qian and Director Lu to get to know one another better and I hope that on the basis of this first visit, it will be possible for us to establish a more positive, a warmer relationship and on that basis it would then be easier for us to discuss matters of mutual concern and interest.

Question: Did you discuss the possibility of a visit between the Chinese and the Governor?

Chief Secretary: I of course reiterated the Governor’s invitation for Director Lu to visit Hong Kong at any time. I also extended an invitation to Vice-Premier Qian to visit and the Governor would of course be very happy to see Chinese leaders at any time, at any place.

Question: Mrs Chan, do think that this visit represent ... right now then the past two years?

Chief Secretary: I think this visit indicates that there is a genuine wish on the part of both sides to strengthen communication and links particularly at senior official level. I was particularly encouraged as a result of my meetings in the sense that I felt that both Vice-Premier Qian and Director Lu, they are both genuinely concerned about the civil service. They are concerned to provide whatever reassurance they can and to assure civil servants that they have a future and that they have an important role to play both in maintaining Hong Kong's prosperity and stability before 1997 and after 1997.

End/Tuesday, July 4, 1995

Development package to improve ferry service approved * * * * *

The Govemor-in-Council today (Tuesday) approved the general terms of a pier development package which would enable the Hongkong and Yaumati Ferry Company Ltd (HYF) to improve the quality of ferry services and to keep fare increases in line with inflation.

A Government spokesman stressed that the package would be of considerable benefit to the community because HYF would use a major proportion of the development profits for acquiring new vessels, implementing improvement measures and keeping fare increases in line with inflation.

4

- 3 -

"In addition, a full market premium estimated will be paid to the Government for the land grant,” he added.

The spokesman pointed out that the terms of the package was the result of lengthy negotiations between the Government, HYF and its parent company, Hong Kong Ferry (Holdings) Company Ltd (HKF).

He said the Government- would now be able to proceed with the drafting of a tripartite agreement with HKF and HYF.

On details of the general terms of the pier development package, the spokesman said HKF agreed to pay for the benefit of HYF, whichever was more, $640 million or 60 percent of the sales profit from the disposal of the entire development and 50 per cent of the rental income to be derived during the franchise period from not less than 20 per cent of the commercial gross floor area of the entire development.

"HYF has agreed to use the money to finance ferry service improvements, to keep future fare increases in line with inflation and to cover the losses that HYF would incur in operating ferry services," he said.

"HYF has also agreed to apply for an extension of its franchise from 1999 to 2010.

"A committee comprising two Government representatives and two HKF/HYF representatives will be set up to ensure that all the cash cask injection is properly applied in accordance with the terms of the tripartite agreement.

"If HYF ’walks away’ from its franchise during the term of a franchise, the Government can take possession of the company’s assets ferry-related assets valued at $580 million without compensation.

"The arrangements will be enshrined in a tripartite agreement to be signed between the Government, HKF and HYF."

The spokesman reiterated that the package would be of considerable benefit to the community, in terms of HYF's commitment to improve ferry services standards, to keep fare increases in line with inflation at a reasonable level and to maintain an efficient ferry services at least up to 2010.

With regard to the disposal of the site required for development, approval has been granted by the Land Commission.

End/Tuesday, July 4, 1995

4

Unlicensed guesthouse operator fined *****

A guesthouse operator was fined $10,000 in the South Kowloon Magistracy today (Tuesday) after he pleaded guilty to a charge of running an unlicensed guesthouse at the Chungking Mansions in Tsim Sha Tsui.

The court heard that officers of the Home Affairs Department’s Office of the Licensing Authority inspected a flat on the sixth floor of the building on May 3 and found that the premises was operating as a guesthouse, but without a licence.

The operator was subsequently charged under Section 5 of the Hotel and Guesthouse Accommodation Ordinance.

Meanwhile, a spokesman for the department reiterated that anyone who operated a guesthouse without a licence or a valid certificate of exemption was liable on conviction to a fine and two years’ imprisonment.

He stressed that' enforcement action would continue to be taken against unlicensed guesthouses, adding that policing and prosecution would be a long-term exercise and would not be confined to a particular district.

He also invited the public to report on unlicensed guesthouses to the office by telephoning 2881 7034.

End/Tuesday, July 4. 1995

Results of the 1993 survey of industrial production

* * * * *

The gross output performed by manufacturing establishments in 1993 amounted to $311.8 billion, representing a decrease of 5.9% over 1992.

Net of total operating expenditure, the gross surplus of these establishments amounted to 11.5% of the gross output in 1993. This was 0.1 of a percentage point lower than the corresponding figure of 11.6% for 1992.

The value added, which is a measure of the sector’s contribution to Hong Kong’s Gross Domestic Product, amounted to $91.2 billion in 1993. This represented a decrease of 6.5% over 1992.

5

These are some of the major findings of the 1993 Survey of Industrial Production, released today (Tuesday) by the Census and Statistics Department. The survey was conducted from April 1994 to early 1995.

All value figures in this press release are expressed in current prices. The percentage changes derived from these figures have not been adjusted for price changes. Caution should therefore be taken in interpreting the survey results.

In terms of percentage share of gross output, the operating expenditure incurred by manufacturing establishments amounted to 88.5% in 1993. This comprised 16.6% for compensation of employees; 61.2% for consumption of materials, supplies, and industrial work/services; and 10.7% for other expenses.

Compared with 1992, the percentage share for consumption of materials, supplies and industrial work/services decreased by 0.1 of a percentage point while that for compensation of employees increased by 0.2 of a percentage point.

The value added content of the gross output performed by these establishments amounted to 29.2%, comprising mainly 16.6% for compensation of employees and 11.5% for gross surplus. Compared with 1992, the percentage share for compensation of employees increased by 0.2 of a percentage point while that for gross surplus decreased by 0.1 of a percentage point.

The survey results also showed that there were some 34,400 manufacturing establishments operating in 1993.

In terms of value added, the five largest broad industry groups in 1993 were (I) basic metals, fabricated metal products, machinery and equipment, accounting for 21.9% of the total value added of the manufacturing sector: (2) wearing apparel, 17.6%; (3) textiles, 14.5%; (4) paper products, printing and publishing, 12.9%; and (5) electrical and electronic products, 12.9%.

Moderate increases in value added in 1993 were recorded in the paper products, printing and publishing industry (+13.5%) and the chemical, rubber and non-metallic mineral products industry (+10.0%). However, significant decreases were shown in the leather, wood and cork products industry (-28.6%) and the plastic products industry (-21.2%).

The principal statistics for the manufacturing industry, classified by broad industry group, are shown in the table.

Apart from manufacturing establishments, the survey also enumerated establishments engaged in (i) mining and quarrying; and (ii) supply of electricity, gas and water.

f

6

Details of the survey results will be published in a full report available around August/September, 1995.

Enquiries regarding statistics on industrial production can be directed to the Industrial Production Statistics Section of the Census and Statistics Department on tel 2839 3202.

7

Summary results ci the 1993 Survey zz Industrial Production classified by broad manufacturing industry group

Gross

Broad Number industry of estagroup blishments Number of persons engaged Compensation of employees ($ Mn) Consumption of materials. surplus (net of "textile

supplies & industrial work/ services ($ Mn) Other expenses ($ Mn) export quota transfer receipts") ■ ($ Mn) Gress output ($ Mn) Value added ($ Mn)

Food, beverages 7S4 25 749 3,211 9.160 2,772 3,732 18,374 6,961

and tobacco (-6) (-2) (10) (-5) (-8) (-11) (-P (-2)

Wearing apparel. 4 703 129 992 10,652 36,146 6.492 3,829 57.119 16,011

except knitwear and footwear X- <1 (-28) (-23) (-19) <•'» ■') (-10) (-16) (-12) (-12) (-18)

Leather, wood and 1 288 7 302 564 1,875 390 284 3,112 857

cork products (-29) (-31) i. (-27) (-31) (-26) (-30) (-30 (-29)

Textiles (including 3 619 81 996 8,495 31.521 5,377 3,652 49.245 13,180

knitting) (-21) (-8) (•) (-5) (-4) (-2S) (-6) (-11)

Paper products. 5 923 53 561 6,144 15,513 3,616 5,358 30,631 11,800

printing and publishing (-7) (2) (16) (10) (10) (13) (11) (13)

Chemicals, rubber & 1 008 11 575 .1,568 7,420 1,809 1,555 12,352 3,233

non-metallic mineral products O (-5) (9) (8) (11) (15) (9) (10)

Plastic products 2 374 22 465 2,106 5,997 1,330 1,593 11,026 3,804

(-32) (-31) (-25) (-35) (-32) (-V) (-30) (-21)

Basic metals. 11 327 104 031 11,581 42,753 6,267 5,109 63,713 19.974

fabricated metal products, machinery & equipment (-17) (-17) (-4) (-8) (-6) (-5) (-7) (-4)

Electrical & 678 45 947 5,422 30,389 4,115 5,980 45,926 11,717

electronic products (-15) (-10) (1) (-5) (-1) (-9) (-5) (-5)

Other manufacturing 2 708 22 271 2,135 10.104 1,178 1,422 14,840 3,614

industries (5) (-2) (2) (14) (12) (19) (12) (8)

All manufacturing 34 382 504 888 51,879 190,878 33,345 35,714 311,815 91,151

industries (-18) (-15) (-4) (-6) (-6) (-7) (-6) (-6)

Notes : (1) There may be a slight discrepancy between the sum of individual items and the total as shown in the table due to rounding.

(2) Figures in brackets represent percentage changes in 1993 over 1992.

(3) Value added is a measure of the contribution of an industry to Hong Kong's Gross Domestic Product.

(4) The -Number of person engaged- are 'full-year equivalent' figures, i.e., for an establishment which operated for only part of 1993, the number of persons engaged as at the end of the quarters during which the establishment operated are summed up and divided by 4.

• Changes within +/- O.St

End/Tuesday, July 4r,.; J995

8

Safe system of work for new airport urged *****

A large number of modem construction methods being introduced in the Airport Core Programme projects have drawn great concerns from the Labour Department.

The department's Chief Factory Inspector Chan Tat-king said today (Tuesday) that although airport building contractors were working hard towards making their sites safe for the workers, they should ensure there were thorough assessment plannings and supervisions for all hazardous jobs before they were commenced.

As construction of the new airport platform intensifies, Mr Chan observed that inter-communication and co-ordination among the contractors there were essential as it would be a highly difficult task for implementing day-to-day safety on site if each of them was working in isolation of the others.

"The difficulty is further complicated by the fact that work activities are wide ranging and tend to be carried out on tight schedule. Furthermore, there are people of different nationalities doing different types of work in close vicinities but under different commands," he said.

The Chief Factory Inspector advised contractors to keep each other informed of what was going on with their own projects so as to draw other contractors' attention to possible hazards arising from their works.

He also cautioned that hazards associated with temporary work should not be undermined.

"Any temporary work, like other kind of jobs, should be properly designed, constructed and maintained to ensure it is safe for use and without risks to others working on the same site.

"Risk assessments should be performed for all hazardous jobs whether they are of a temporary nature or not, and a safe system of work should be developed and put in place in all work situations," Mr Chan added.

Under the general duties provisions of the Factories and Industrial Undertakings Ordinance, it is an employer's duty to provide a system of work that is safe and without risks to health to all persons he employed. Failing to do so may result upon conviction in imprisonment of up to six months and a maximum fine of $200,000.

9

Mr Chan reminded all new airport contractors to see to it that they have fulfilled their legal obligations in this respect.

Contractors having questions about the safe system of work may refer to the guide book on Safe System of Work published by the Factory Inspectorate or consult their safety advisers.

They are welcomed to contact the Factory Inspectors in the New Airport and Railway Team for advice on 2417 6207 or 2834 5639 if they have problems relating to safety and health requirements.

End/Tuesday, July 4, 1995

Hong Kong Monetary Authority tender results

*****

Tender date 4 Jul 1995 4 Jul 1995

Paper on offer EF bills EF bills

Issue number Q527 H568

Amount applied HK$4,998 MN HK$2,870 MN

Amount allotted HK$ 1,500 MN HKS800 MN

Average yield accepted 5.45 PCT 5.52 PCT

Highest yield accepted 5.46 PCT 5.53 PCT

Pro rata ratio About 14 PCT About 10 PCT

Average tender yield 5.47 PCT 5.54 PCT

10

Hong Kong Monetary Authority

Tenders to be held in the week beginning 10 Jul, 1995

U • Tender date 11 Jul 1995 11 Jul 1995

Paper on offer EF bills EF Bills i

• • i . Issue number Q528 . . ■■. 1 p >■ Y591

Issue date 12 Jul 1995 12 Jul 1995

Maturity date 11 Oct 1995 10 Jul 1996

Tenor 91 Days 364 Days

Amount on offer HK$ 1,500+300 MN HK$500+150MN

End/Tuesday, July 4, 1995

Hong Kong Monetary Authority money market operations

♦ ♦ ♦ ♦ ♦

/’ • i > Cumulative

* 1. • . H ' f’ - ‘ Time change

s million Opening balance in the account 1,499 Closing balance in the account 2,040 Change attributable to: Money market activity 4-1,021 LAF today - 480 LAF rate 4.25% bid/6.25% offer TWI 118.3 *+0.0* (hours) (Smillion) 0930 +1,021 1000 +1,021 1100 +1,021 1200 +1,021 1500 +1,021 1600 +1,021 4.7.95

- 11 -

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.30 2 years 2705 6.40 100.93 5.95

1 month 5.36 3 years 3804 6.90 101.86 6.26

3 months 5.45 5 years 5006 6.60 99.15 6.92

6 months 5.51 5 years M501 7.90 102.57 7.39

12 months 5.61

Total turnover of EF bills and notes - $10,027 million

Closed July 4, 1995

End/Tuesday, July 4, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Wednesday, July 5,1995

Governor to visit London later this month................................ 1

The Governor welcomes the new Foreign Secretary.......................... 1

Transcript of the Governor's media session after visiting treatment centre .. 2

Transcript of the Governor's media session............................... 6

Governor visits Drug Addiction Treatment Centre.......................... 8

Airport Railway Financial Support Agreement signed....................... 9

Rambler Channel Bridge achieves major milestone.......................   10

Progress of review of social welfare subvention system.................. 11

Applications invited for Language Fund.................................. 12

Commercial Subject Project Competition and Exhibition - 1995 ........... 13

Three Kowloon lots to let............................................... 15

Hong Kong Monetary Authority money market operations.................... 15

1

Governor to visit London later this month ♦ ♦ ♦ ♦ ♦

The Governor, the Rt Hon Christopher Patten, hopes to pay a short visit to London later this month to brief the new British Foreign Secretary on Hong Kong issues.

This was disclosed by the Governor when he spoke to the media after visiting the Hei Ling Chau Drug Addiction Treatment Centre today (Wednesday).

”1 am hoping that I’ll be able to fly back to London for a couple of days in about 10 days’ or a fortnight's time to brief the new Foreign Secretary and any new ministers or officials about Hong Kong and to see any other new ministers who have responsibilities which touch on Hong Kong as well,” he said.

Asked what message he would bring to London, the Governor said: ’’The message I’ll have is that we’ve still got a robust economy, that we’ve got some problems with unemployment and consumer confidence which need to address.

”1’11 also say to him that we’ve recently made better progress with for example the good deal on the Court of Final Appeal and with the agreement on the airport and the franchises.

"But there remains a lot of work to do on issues like right of abode and adaptation of laws and we should do everything possible to make progress in those areas.

”1’11 also say that I think the Chief Secretary’s visit to Peking and the courtesy and cordiality with which she was received were an important sign and that she is much reassured by what was said to her by Qian Qichen and by Director Lu about their commitment to a successful and peaceful transition and in particular by what they said about the importance of Hong Kong's civil service to the success of the community.”

End/Wednesday, July 5, 1995

The Governor welcomes the new Foreign Secretary ♦ ♦ ♦ ♦ ♦

The Governor, the Rt Hon Christopher Patten, today (Thursday) welcomed the appointment of Mr Malcolm Rifkind as Foreign Secretary.

Mr Patten said: "Mr Rifkind’s appointment is good news for Hong Kong. I have known him for many years and worked with him as a Cabinet colleague.

2

"As a member of the Cabinet Sub-Committee on Hong Kong, Mr Rifkind knows the Hong Kong issue and has been involved in a number of crucial decisions affecting Hong Kong policy in recent years.

"I look forward to visiting London later this month to meet the new Foreign Secretary and to take the opportunity to discuss Hong Kong issues in detail with him.”

End/Wednesday, July 5, 1995

Transcript of the Governor's media session after visiting treatment centre ♦ * * * *

The following is a transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting the Hei Ling Chau Drug Addiction Treatment Centre today (Wednesday):

Governor: This is another of the visits I've been making to follow up our summit on drugs. We are determined to continue to give the beat drugs campaign all the support that's necessary. I'm pleased to have seen what's being done by the Correctional Services Department on Hei Ling Chau. As you will know this particular centre is a reflection of the growing problem among young people. The centre's been opened for a year and I think it's doing a very good job in coping with drug abuse among youngsters. But there’s a problem with older men and women as well. So, the activity that was already going on here is also extremely important. We'll be publishing later this week our first quarterly progress report on our action plan on dealing with drugs. And, next week, the Government will be responding to ACAN's comments on the various recommendations and proposals that came forward at the submit we had at Hong Kong University a few months back. So we are trying to move forward on all fronts and in the autumn we should be in a position I think to make some more concrete proposals on the funding of activities. But obviously that's being looked at in the context of our overall review of public spending this summer. But I'm pleased to have seen once again what an excellent Correctional Services Department we've got. They have a very good success rate in their work with drug abusers but obviously there have been concerns expressed about following up what happens after the first 12 months. That may well be an area of research which we'll need in due course to look at.

Question:... In the immediate term, what’s going to be done to alleviate over-crowding here?

3

Governor: There’s over-crowding here of about 13 per cent which we think is at the moment manageable. There is a bigger problem with the over-crowding of facilities for young women and that’s why we’ve got proposals to open a new treatment centre for young women. I think that’s where the problem is most acute and where we’ve got to give priority.

Question: Mr Patten, how would you co-operate with the preparatory working committee which is going to be established next year. Would you set any guidelines for the civil servants to follow?

Governor: I’ve said on a number of previous outings such as this and in individual interviews that we want to have discussions with Chinese officials about the ways in which we can best co-operate, not only with the Preparatory Committee, but also with the Chief Executive Designate and her or his team later in the year. I think everybody recognises that co-operation with the team designate will necessarily be at an even more intense and comprehensive level than with the Preparatory Committee. But those are matters that I’d like to discuss first or see discussed with Chinese officials. I’m sure that the co-operation will be as successful as it’s proving to be on the Budget and on financial issues at the moment.

Question: Will there be any meetings between the new Foreign Secretary meet...

Governor: Well, as you know Vice-Premier Qian has accepted the invitation to go to the United Kingdom in the autumn after the UN General Assembly. The new Foreign Secretary who I imagine will be announced today will, I am sure, regard that as one of his most important autumn meetings and one of his priorities and that’s one reason why I’m hoping that I'll be able to fly back to London for a couple of days in about 10 days or a fortnight’s time to brief the new Foreign Secretary and any new ministers or officials about Hong Kong and to see any other new ministers who have responsibilities which touch on Hong Kong as well.

Question: What message will you bring to the new Foreign Secretary...

Governor: The message I'll have is that we've still got a robust economy, that we've got some problems with unemployment and consumer confidence which we need to address. I'll also say to him that we've recently made better progress with, for example, the good deal on the Court of Final Appeal and with the agreement on the airport and the franchises. But there remains a lot of work to do on issues like right of abode and adaptation of laws and we should do everything possible to make progress in those areas. I think what’s required is for Chinese officials to be as co-operative as possible so that we can enjoy progress in those areas just as we’ve enjoyed progress for the last month in others. I'll also say that I think the Chief Secretary's visit to Peking and the courtesy and cordiality with which she was received were an important sign and that she is much reassured by what was said to her by Qian Qichen and by Director Lu about their commitment to a successful and peaceful and stable transition and in particular by what they said about the importance of Hong Kong's civil service to the success of the community.

4

Question: There's been a report today that Chinese officials prefer to deal with Anson Chan rather than you...

Governor: I saw that report. There was a report attributed to a Chinese official. I thought it was slightly curious because we used to hear remarks from the New China News Agency about three-legged stools. But this remark seems to suggest that now the NCNA were very keen to deal with local officials. But let me put the point in context. I appointed Anson Chan as Chief Secretary because I believe strongly that she was the best person for the job. I've seen her working at close hand and I think she's an outstanding civil servant. She's the senior member of my team. We work very closely indeed. We see eye to eye on the issues on Hong Kong's agenda and when earlier in the year, it seemed that Director Lu and other Chinese officials would still have some difficulties in meeting the Governor of Hong Kong for reasons which I think are curious but nevertheless which affect their political behaviour, I suggested that if they have difficulties meeting the Governor of Hong Kong then they should meet the Chief Secretary. So I'm delighted that they do that and I hope that she has further successful visits. I hope that they come to Hong Kong and meet the Chief Secretary and our officials, our senior officials and I can assure you that as Governor of Hong Kong between now and the June 30, 1997, that will have my full support and of course Anson Chan and I will continue to see eye to eye on the sort of issues that she may be discussing with senior Chinese officials.

Question: Why was there such secrecies surrounding it?

Governor: I don't think there was so much secrecies around the visit. After all, as soon as Anson Chan got back from Peking she told you all and the community that's she been and what had happened and what had been discussed. But as you know when earlier in the year, it wasn't possible for a variety of reasons which we much regretted for Director Lu and Anson to meet. There was a certain amount of controversy. We thought in the light of that in order to break the ice and to get things moving in a sensible direction, perhaps it would help on the first outing as it were if it was done confidentially. But the usual Hong Kong vocabulary about "secret deals" is not appropriate in this case nor in most others.

Question: (inaudible)

Governor: I don't see my role reducing. But those of you who have been around for longer will know that for about 18 months I've said this increasingly as we got closer to 1997 I'll be wanting to take more of a back seat partly because I'll be bringing on my senior officials and partly because I wouldn't be here after 1997 but I hope that most of them would be and that it was appropriate to delegate to them as much as possible while of course having to take responsibility for what's done in the name of the Government of Hong Kong and occasionally having to act perhaps as a buffer or to attract some of the flak in order that others can get on with the job of running Hong Kong as successfully as possible. But I think those of you who have been here for sometime will concede that it's a point that I've been making for well over a year.

5

Question: What about the ... of CT9? When will it be resolved?

Governor: As far as we are concerned, its not a knot that we have tied. But the sooner it can be solved the better because we need to develop our port in order to ensure that our economy can go on expanding. It's one of a number of issues that I’d like to see resolved sooner rather than later.

Question: Do you have any proposals to solve the CT9 problem?

Governor: We’ve got a perfectly sensible proposal on the table but obviously we keep the question of the development of the port under regular review.

Question:... on the election?

Governor: I gave one this morning. Do you want another? Mr Major doesn't need support from Flong Kong in ensuring that he gets the support that he deserves. But to answer your question, I'm pleased about the result. Mr Major's made rather a habit over the years of confounding his critics and handsomely winning contests which many have predicted he wouldn't be able to win. I think it's good news for Hong Kong because it will ensure that people can get back to the business of government rather then being distracted by this sort of thing. I hope it will ensure that the government is as effective and authoritative as possible and up to the next election and then the voters of the United Kingdom will have to decide about the next few years. So I think it's good news for Hong Kong and good news for Britain.

Question: Did you canvass for him?

Governor: No.

Question: Did you ring MPs...

Governor: I have spoken to one or two of my friends in the United Kingdom over the last week but then I have over every weeks since 1992. One of the advantages of telephone is that you can go on keeping in touch with people you know. But Mr Major didn't require a canvasser in Hong Kong, nor would I have thought it an appropriate role for the Governor of Hong Kong. So the suggestion's to the contrary. I'm happy to knock over the sight screen as Mr Major might say.

Question: Did you suggest to your friends that they should vote for Mr Major?

Governor: My friends aren't that sort of people who would need anybody to suggest that to them because they would know what's the sensible thing to do.

6

Question: You said you will visit London, when?

Governor: I said that I hope I’ll be able to make a visit in about 10 days to a fortnight. But it would obviously depend on the new Foreign Secretary’s diary. It will be a very rapid visit. I’ll just go for a couple of days to see the new Foreign Secretary and any other new ministers and it may be that the Prime Minister’s diary allows him to see me as well.

End/Wednesday, July 5, 1995

Transcript of the Governor’s media session ♦ ♦ ♦ ♦ ♦

The following is a transcript of the media session by the Governor, the Rt Hon Christopher Patten, after recording a music programme in RTHK today (Wednesday);

Question: Can you comment on John Major's victory last night?

Governor: I am naturally pleased. 1 think it’s cleared the air. It’s a very brave decision on his part. And I think it’s good news for Hong Kong, it enables the Government to get back to work, having re-established the authority of the Prime Minister until the next election. So I think it’s a good result for the Prime Minister and a good result for all those of us who are concerned about the effectiveness of the government in

London.

Question: What do you make a report that you are being marginalised by Beijing?

Governor: I think it’s a ridiculous report. We have an extremely good Chief Secretary. She and I see eye to eye as you know on every issue. 1 am delighted that she's been able to make contacts so successfully with Vice-Premier Qian Qichen and Director Lu. They treated her with great courtesy and civility as one would have expected. I think they were able to give her a good deal of reassurance about the civil service and about Hong Kong which was very welcome. I think there was nothing but good in the visit. I hope that Anson is able to make many similar visits over the coming years.

Question: And for this JLG, what do you think that... outcome can be concluded after Anson's visit?

7

Governor: I don't think that Anson's visit will have a great impact on the JLG meeting as I was saying last week, despite the very welcome progress that we've made in the last few weeks - the airport agreement, the franchise and of course the agreement on the Court of Final Appeal - despite that and the improvement in the atmosphere which I think Anson's visit is an example of, I don't think we'll see a great harvest at this JLG meeting because there hasn't been the progress in some of the expert groups that would be necessary in order to get a lot of decisions out of the JLG. So I hope we'll make some progress. 1 hope we'll get some successful agreements. But by and large, 1 think what we are looking for is a definite improvement, 1 hope, in the atmosphere and in the tone of the JLG leading to more agreements in coming months with Chinese officials coming more readily to the table to reach agreement with us.

Question: Could you address the point that the Beijing administration can deal directly with Anson Chan and bypass you?

Governor: In directly talking to the Chief Secretary, anyone is talking to me as well. I am the Governor of Hong Kong and will be until June 30, 1997. Anson Chan, I might chose of course to be Hong Kong's first local Chief Secretary is my closest colleague and adviser and we work as a team. We have worked as a team and we'll continue to work as a team. I am not surprised by the high esteem in which Anson is held in the community and overseas because she does an outstanding job and is a great and eloquent champion of Hong Kong.

Question: How can her visit enable your visit in the near future to Peking?

Governor: Well, I think the case for direct contacts between me and between Chinese officials is as strong as it ever has been. I don’t think it's changed at all. But you'll remember that when there seemed to be some continuing difficulty, let me put it as diplomatically as that, with Director Lu seeing me earlier in the year despite the commitments that have been made in the past, in past agreements, when that looked as that was going to be difficult, I suggested that if he didn't want to meet me he should meet Anson Chan. I am delighted that he's done that. And obviously it was at some personal inconvenience because he came out of hospital in order to meet Anson and then had to go back again. I am sure that everyone in Hong Kong will join me a* join Anson Chan in wishing him a speedy and full recovery. Thank you very much.

End/Wednesday, July 5. 1995

8

Governor visits Drug Addiction freatment Centre *****

The Governor, the Rt Hon Christopher Patten, today (Wednesday) visited the Hei Ling Chau Drug Addiction Treatment Centre (HLTC) to see for himself the drug treatment programme and operation of the Centre.

This is the fifth in a series of visits to agencies contributing to the reduction of drug abuse following the summit meeting chaired by the Governor in March.

Accompanied by the Commissioner of Correctional Services, Mr Raymond Lai; the Assistant Commissioner of Correctional Services (Operation), Mr Charles Tsung; and the acting Commissioner for Narcotics. Mrs Sarah Kwok, the Governor toured round the HLTC's main Centre and its annex.

He first visited the main Centre's hospital where adult inmates were being treated. He then visited laboratory, dormitory, and saw some industrial products made by inmates.

The Governor then proceeded to the Centre's annex where young inmates were accommodated. There he saw young inmates receiving physical training after detoxification. Young inmates were playing table tennis inside the indoor gymnasium while some were attending a drill session at the upper assembly yard.

He also visited the annex's book-binding workshop, kitchen and dining hall where young inmates were at work. He also met the Centre's clinical psychologist who briefed him on the counselling services given to the inmates.

The HLTC came to operation since April 1975. The main Centre provides an accommodation for 784 adult inmates. In order to cope with the upsurge of young inmate population, the Nei Kwu Chau Detention Centre which was located at the eastern side of the island, formerly housing Vietnamese migrants, was being converted last April into an annex to the treatment centre for 180 young inmates.

End/Wedncsday. July 5. 1995

9

Airport Railway Financial Support Agreement signed

*****

The Financial Support Agreement (FSA) for the Airport Railway will provide the detailed assurance of Government’s support required for the Mass Transit Railway Corporation (MTRC) to complete the project through commercial borrowings, the Secretary for the Treasury, Mr KC Kwong, said today (Wednesday).

Mr Kwong was speaking at a ceremony held this morning to mark the signing of the FSA for the Airport Railway. The FSA was signed by Mr Kwong and the Chairman of the MTRC, Mr Jack C K So.

’’The Corporation has enjoyed tremendous success in the financial markets over the years and I have no doubt that with this Agreement it will secure financing for the project on very favourable terms.

"I wish to reconfirm Government's commitment to support the Corporation in all its endeavours to complete the Airport Railway in a timely and cost-effective manner by mid-1998,” said Mr Kwong.

Mr So said with the FSA now firmly in place, the MTRC would immediately commence a major financing programme which would include a variety of funding instruments in Hong Kong as well as other financial markets.

’’Based on the Corporation's past record and credit ratings, we have full confidence that the programme will be successfully completed on time to provide the necessary funding," he said.

Mr So said the MTRC was making excellent progress with the construction of the Airport Railway.

"All major civil engineering contracts and most of the electrical and mechanical contracts for the building of the 34-kilometre railway to the new airport as well as the new town in Tung Chung have been awarded. Construction is under way at all the sites.

"The new railway is currently programmed to open for passenger service by June 1998. However, the Corporation will continue to work towards an earlier opening of the railway as far as possible," said Mr So.

End/Wednesday. July 5, 1995

10

Rambler Channel Bridge achieves major milestone ♦ ♦ ♦ ♦ ♦

Construction of the main spans of the Route 3 Rambler Channel Bridge will be completed this month making it the first bridge under the Airport Core Programme (ACP) to be completed.

This significant milestone will be reached two months ahead of schedule and just over a year after construction of the bridge deck began.

The 0.5 kilometre long bridge spans the busy marine channel between Tsing Yi Island and Kwai Chung and is part of the ACP’s Route 3 project.

"The speed at which the work has been completed is remarkable and was made possible by the use of an innovative method of bridge construction introduced to Hong Kong by the lead contractor on the project. Dragages et Travaux Publics," said the Chief Engineer of the Route 3 project, Mr Duncan Siu.

Apart from the smaller Rambler Channel Bridge, two other much larger ones are being built under the ACP. They are the 2.2 kilometres long Tsing Ma suspension bridge and the 820 metres long Kap Shui Mun cable-stayed bridge.

Mr Siu said the last pair of the 312 precast concrete segments, which form the bridge deck spanning across the Rambler Channel, will be positioned this week. Then all that remains to be done to finish the bridge deck is to complete the side spans on the Tsing Yi side and this is scheduled to take place next month.

He said the concrete segments were erected by a special piece of lifting equipment known as a launching girder which allowed the contractor to erect up to 60 metres of bridge deck in a week, considerably faster than other more conventional methods of bridge building.

The use of a launching girder to build bridges is a relatively new technique for Hong Kong used only once before on the Kwun Tong Bypass project.

Not only did the equipment help to reduce the construction period but it also enabled the bridge deck segments to be erected without the need to build temporary supports from the channel thus eliminating the need to close off sections of the Rambler Channel.

"Apart from the speed factor, this was a major advantage of using a launching girder as this meant that there would be no disruption to road and marine traffic during the construction period." Mr Siu said.

11

The segments were erected progressively outwards from each pier and joined together by high tensile steel tendons with epoxy glue placed between adjoining segments.

Construction of the Rambler Channel Bridge is being done by the Dragages-BSG-Penta Joint Venture, under a $670 million contract awarded by the Highways Department in June 1993.

The contract is on schedule for completion by mid-1996.

Apart from the bridge, the Tsing Yi and Kwai Chung section of Route 3 that is part of the ACP also consists of a tunnel running through Tsing Yi Island and a viaduct through Kwai Chung. The project is now 53 per cent complete.

Work on the other ACP bridges which forms the Lantau Fixed Crossing is also progressing rapidly. Construction of the deck unit of the Tsing Ma Bridge is set to begin later this month and four segments of the Kap Shui Mun Bridge main span have been erected since the first lifting on May 30. Work on the Lantau Fixed Crossing is 66 per cent complete.

End/Wcdnesday. July 5. 1995

Progress of review of social welfare subvention system *****

More than 210 representatives from 110 non-governmental organisations (NGOs) attended a conference today (Wednesday) to learn about the progress of a current review of the social welfare subvention system.

Addressing the conference held at the Duke of Windsor Social Service Building, the Director of Social Welfare, Mr Ian Strachan, said it was a strong indication of NGOs' concern and support in this study.

The Social Welfare Department (SWD) has awarded $6.4 million to a management consultancy firm in March this year to review the existing social welfare subvention administration.

The review, expected to be completed in 18 months, is conducted with a view to streamlining and simplifying the current subvention process and shifting emphasis of control from input of subvention to output of service deliver)

12

’’This conference which is the culmination of Phase A of the review is to enable the consultants to brief NGOs on their findings during the past four months and to explain their vision about our future subvention system.

”It is also a springboard to set in motion a consultation process which will last six weeks to collect feedback from NGOs on the consultants’ framework proposals," Mr Strachan said.

At the conference today, representatives were briefed on the framework proposals by the consultants including the introduction of formal funding and service arrangements between the SWD and NGO administrators, the development of a simplified funding process to underpin the system, and the establishment of a set of performance measures covering both quantitative and qualitative outputs.

Mr Strachan assured the representatives attending the conference that the Administration had not taken any decision on these proposals and would like to hear the views of the social welfare sector first, particularly on the various funding options identified by the consultants.

"During Phase B, the consultants will have to conduct further evaluation of these options, having regard to the feedback received, but no matter what consensus we finally reach on the preferred funding solution. I am confident that it will represent a considerable improvement on the current arrangements," he added.

End/Wednesday, July 5, 1995

Applications invited for Language Fund *****

Organisations, individuals and schools wishing to undertake projects or activities to improve language standards in Hong Kong are invited to apply for the Language Fund.

The Language Fund was set up in May 1994. It is a trust fund held under the Director of Education Incorporation Ordinance with an initial allocation of $300 million.

The main objective of the Fund is to support proposals and initiatives which will raise the standards in Chinese (including Putonghua) and English, enhance existing efforts and meet temporary shortfalls in language teaching resources. In addition, the Language Fund will encourage research into problem areas and initiation of new approaches.

13

A spokesman for the Language Fund Secretariat said: ’’This is the second call for the 1994/95 application. Starting from 1996, applications will be only called for once a year.”

Projects to be funded should be able to:

improve motivation for language learning;

* enhance the quality of teacher education for language in education;

* increase the supply and quality of textbooks, reference materials and appropriate teaching aids; and

* launch innovative projects which maximise proficiency.

Applications can be made either on an individual or institutional basis using standard forms which will be available for collection on Friday (July 7) from the General Enquiries Section of the Education Department, 15th floor, Wu Chung House, 213 Queen’s Road East, Wan Chai, as well as the Language Fund Secretariat in Room 1141 on the 11th floor of the same building.

Enquiries should be made to the Language Fund Secretariat at 2892 5772 or 2892 6642.

Completed application forms should be returned on or before September 30, 1995.

End/Wednesday, July 5, 1995

Commercial Subject Project Competition and Exhibition - 1995 ♦ * * * *

The Assistant Director of Education Department (Chief Inspector of Schools), Mr Ho Che-leung, tomorrow (Thursday) will officiate at the prize-presentation ceremony and the opening ceremony of the Commercial Subject Project Competition and Exhibition - 1995 at the Hong Kong Teachers’ Centre.

The competition aims at arousing the interest of students between Secondary 4 to 7 in various commercial activities and encouraging them to explore the fascinating features which have significant impacts on people’s daily lives.

The theme of this year’s competition is "Business in Hong Kong - its developments and ethics".

14

A total of 99 entries from 31 secondary schools took part in the competition. Participants explored the recent developments and the ethical issues related to the various business activities in Hong Kong.

The Commercial Subject Project Competition is sponsored by Group Sense Ltd. Its chairman, Mr Tam Wai-ho, will also officiate at the ceremony.

The competition is divided into three groups and the winners are as follows:

.. . .

Group 1: Information Technology and Communication

1st Prize Belilios Public School

2nd Prize Pok Oi Hospital Chan Kai Memorial College

3rd Prize CCC Rotary Prevocational School

• ’’V

Group 2: Aids to Trade

; i

1st Prize Marden Foundation Caritas Prevocational School

2nd Prize Buddhist Ho Nam Kam Prevocational School

3rd Prize TWGHs Wong Fut Nam College .<> <

Group 3: Free Choice

1st Prize Ho Tung Technical School for Girls

2nd Prize Buddhist Ho Nam Kam Prevocational School

3rd Prize CCC Rotary Prevocational School

Attention News Editors:

Your representatives are invited to cover the prize-presentation ceremony and the opening ceremony of the Commercial Subject Project Competition and Exhibition > - 1995 at 3 pm tomorrow at the Display Room, ground floor, Hong Kong Teachers' Centre, 4 Pak Fuk Road, North Point.

End/Wednesday, July 5, 1995

15

Three Kowloon lots to let ♦ ♦ ♦ ♦ ♦

The Lands Department is inviting tenders for the short-term tenancies of three pieces of government land in Kowloon.

All three lots, each has an area of 1.96 hectares, are located at the Reclamation Area on Stonecutters Island for open storage of containers.

The tenancies of the lots will be for two years, renewable quarterly.

Closing date for submission of tenders for all lots are at noon on July 14.

Tender forms, tender notice and conditions may be obtained from the District Lands Office, Kwai Tsing, the District Lands Offices, Kowloon, 10th floor, Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon and the Lands Department, 14th floor, Murray Building, Garden Road.

Tender plans can also be inspected at these offices.

End/Wednesday, July 5, 1995.

Hong Kong Monetary Authority money market operations ♦ ♦ ♦ ♦ ♦

$ million Time (hours) Cumulative change (^million)

Opening balance in the account 2,040 0930 +480

Closing balance in the account 1,871 1000 +480

Change attributable to: 1100 +476

Money market activity +476 1200 +476

LAF today -645 1500 +476

1600 +476

LAF rate 4.25% bid/6.25% offer TWI 118.3 *+0.0* 5.7.95

16

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.32 2 years 2705 6.40 100.99 5.91

1 month 5.38 3 years 3804 6.90 102.00 6.20

3 months 5.40 5 years 5006 6.60 99.29 6.88

6 months 5.52 5 years M501 7.90 102.67 131 •. ‘ I

12 months 5.61

Total turnover of EF bills and notes - $13,937 million

• • r. 4 ( ■

Closed July 5, 1995

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End/Wednesday, July 5, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

SUPPLEMENT

Wednesday, July 5,1995

Contents Page No.

Legislative Council meeting :

Permanent residency and the right of abode................. 1

Freezing of fees and charges of government services........ 3

Official Languages (Amendment) Bill: committee stage....... 9

Wider use of Chinese in courts welcomed................... 10

Supreme Court (Amendment) Bill 1995 .........•................ 11

AG urges support for Supreme Court Bill................... 14

Occupational Retirement Schemes (Amendment) Bill 1995 .... 16

Occupational Retirement Schemes (Amendment) Bill: committee stage ... 18

Occupational Retirement Schemes (Amendment) Bill: new clauses. 20

Inland Revenue (Amendment) Bill: second reading........... 21

Inland Revenue (Amendment) Bill: committee stage (Clauses 1 and 2).... 22

Inland Revenue (Amendment) Bill: committee stage (new clause). 24

/Professional Accountants.

Contents

Page No.

Professional Accountants (Amendment) Bill............................. 25

Supplementary Appropriation (1994-95) Bill 1995 ...................... 28

Companies (Amendment) (No. 2) Bill.................................... 29

Education for children from China..................................... 30

Maintenance of public housing estates................................. 32

Sub-standard housing estates.......................................... 33

Lam Tin Woman Health Centre........................................... 35

Compensation for widow of shootout victim............................. 36

Non-local workers in Hong Kong........................................ 37

Obligations under declaration for Asian women......................... 47

Water seepage in public housing estates............................... 50

University engineering graduates...................................... 52

Community development................................................. 53

Measures to tackle flooding problem................................... 55

Sewerage facilities for beaches....................................... 56

/Pension payable..

Contents Page No*

Pension payable to civil servants...................................... 60

Home Ownership Scheme..............................................

Reimbursement of charges for dental services........................... 63

Retirement benefits of academic staff.................................. 65

Dental service for civil servants...................................... 66

Publicity campaign to prevent chemical leakage incidents............... 67

Power to obtain information from IRD................................... 69

Traffic congestion at Au Tau Roundabout................................ 70

1

Permanent residency and the right of abode ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Security, Mr Peter Lai, in the motion debate on permanent residency and right of abode in the Legislative Council today (Wednesday):

Mr President,

Having listen carefully to the Honourable Members' speeches on this debate, my impression is that all, or nearly all, would agree with the Honourable James To’s Motion. The Administration also share the sentiment of this Motion.

Permanent resident status which carries with it the right of abode in Hong Kong has been the focus of public attention for some time. This is understandable. As the Basic Law defines permanent resident on a different basis from that of the current law, it is natural that Hong Kong people want to know how they are affected, and what will their future status be. There is, therefore, a real need for the discussions between the British and the Chinese sides to be concluded early and to make known any agreement to Hong Kong residents. We share Members' view that a clear picture of the way ahead on this matter will reinforce confidence in Hong Kong.

For the majority of Hong Kong people who are Chinese nationals with no other nationality status except the BDTC/BN(O) status, their position is clear. Under Basic Law Article 24, they will continue to be permanent residents of Hong Kong after 1997. Discussions with the Chinese side have also helped us to be clearer about the criteria for children of Hong Kong permanent residents who are of Chinese nationality, to have right of abode in Hong Kong after 1997. As a result, we are now able to phase in the entry of these children into Hong Kong over a period of a few years. For the ethnic minorities who have no right of abode elsewhere, the Basic Law has clearly provided for their continued right of abode after 1997.

As far as non-Chinese nationals are concerned, the Basic Law provides that they will have the right of abode in Hong Kong if they have entered Hong Kong with valid travel documents, have resided in Hong Kong for a continuous period of seven years, and have taken Hong Kong as their place of permanent residence. The precise application of this provision is the main issue under current discussion in the Joint Liaison Group.

2

Amongst the non-Chinese nationals who were former residents in Hong Kong or who are residing in Hong Kong now, a substantial number is currently Hong Kong permanent residents who have emigrated to foreign countries and have acquired foreign nationality. This group, in particular those who have returned to settle or work in Hong Kong once again, will understandably wish to retain as much existing rights as possible. We understand their concerns, and those of other non-Chinese nationals who are long-term residents of Hong Kong. We are discussing with the Chinese side how to resolve these issues, and how to align the right of abode provisions in the Immigration Ordinance with Article 24 of the Basic Law. I am afraid that I cannot reveal more of the current discussions under the confidentiality rule of the JLG discussions. But I can assure Honourable Members that every effort is being made in the discussions to seek the best deal for Hong Kong and to bring about an early resolution.

In the course of this debate, some Members referred to the suggestion mentioned by some Chinese officials and PWC members of using 1 July 1997 as a cut-off date for returned emigrants to retain their right of abode in Hong Kong, and to have non-Chinese nationals' intention to take Hong Kong as their place of permanent residence assessed by 'objective criteria'. I believe those senior Chinese officials have made it clear that the Chinese side were prepared to listen to views and suggestions on them. We, on our part, will have to consider very thoroughly about the effects of such a proposition on different kinds of persons, and the practical implications. These are hugely complex issues, and must be given very careful study.

Mr President, it is not only important to have an early resolution of these issues. It is equally important that the resolution is beneficial to the community, and is beneficial to Hong Kong in the long term. It is our objective to achieve such an agreement in the Joint Liaison Group, and to make it clear to all Hong Kong residents their position regarding right of abode in the Hong Kong SAR as early as possible before 1997. I look forward to progress being made in this very important area.

' ’' • ' - * . .... i

Mr President, the Administration support the Motion.

End/Wednesday, July 5, 1995

3

Freezing of fees and charges of government services ♦ * ♦ ♦ ♦

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in the motion debate on freezing of fees and charges of government services in the Legislative Council today (Wednesday):

Mr President,

This motion may be popular, but is it wise? I would urge Members to consider very carefully whether this motion constitutes sensible policy making. I would argue strongly that it does not merit Members’ support.

Mr President, it would do a disservice to those who are unemployed, and to everyone affected by inflation, to give them the impression that the freezing of fees etc is an answer to their problems. Not only is it no answer at all, but perhaps more importantly, some vital principles are put under serious threat by the thinking behind this motion. Maintenance of those principles is vital to all Hong Kong citizens, whether they be in work or temporarily out of it; whether they live in public housing or elsewhere; whether they catch the train or the bus. That is why the Official Members today will oppose all the amendments, and the motion itself in whatever final form it takes. And that is why I urge all other Members of this Council to do the same. Let me explain.

Unemployment

I will deal first with the subject of unemployment. The present rate of about 3% is low by world standards but higher than the Hong Kong community has been used to in recent years. The Government is keenly aware of the community concern this has aroused.

Although the increase in unemployment is a very recent development, we have already taken some steps to try to ameliorate the situation. Honourable Members will hardly need reminding of the two recent motion debates on labour policy and the unemployment situation on 3 May and 7 June respectively. I would not wish to repeat the details that have been covered by my colleague the Secretary for Education and Manpower on those occasions. I just wish to make the point that the Administration fully appreciates that unemployment is a complex and important problem. In addressing this issue, however, we must focus our efforts in finding the right solutions that will work and be able to create long term employment in Hong Kong.

4

Following the Governor’s Summit on the Labour Situation on 6 June, the Administration has announced a comprehensive plan of short, medium and long term measures to tackle unemployment, ranging from retraining, job placement, cracking down on illegal employment, a household survey to obtain more detailed information on the profile of the unemployed and job vacancies, to review of the General Labour Importation Scheme, etc. The Secretary for Education and Manpower has also explained, while responding to Hon Fred Li’s motion on 7 June, what would be done to solve the livelihood problems of workers during periods of unemployment. These measures are direct, focused and, we hope, effective.

Inflation »• .. '/i ■.

I turn next to inflation. At about 9% this is thankfully below the peak in recent years of 12% reached in 1991, but still uncomfortably high. In order to address the problem correctly, we must first identify the causes. After all, as the Chinese saying goes ” Jfcf"• We cannot hope to make the right prescription unless we have diagnosed the illness accurately.

There is a significant structural component to our present inflation caused by the ongoing transformation of our economy. The Government's best contribution to easing the pains of this process is to ensure that our infrastructure - both human and physical - is adapted as quickly as possible to meeting the new demands and challenges as they emerge. The substantial investments that we have made and are making in education, vocational training and re-training are bearing fruit. The equally substantial investments in physical infrastructure - most notably the new airport -continue to target the economic bottlenecks and eliminate them. We have introduced measures to stabilise the property market and curb speculative pressures on property prices with some degree of success: property prices and rentals have moderated from their peak levels last year. Our on-going measures to increase land supply and expedite flat production to match the continuing demand for flats will help to restrain the rise in flat prices and rentals in the longer term. We shall of course maintain our prudent budgetary policies and ensure that public spending does not increase faster than the growth of our economy, although this has drawn criticism from some Honourable Members for being too conservative. All this is a slow process, with lead times that can be frustrating. But we must persevere with these measures, not snatch at short term palliatives. We are convinced that, in the long term, enhancement of productivity, both in terms of labour and capital, is the most effective means of promoting growth and containing inflation.

5

Turning now to the meat of the debate this afternoon, I should like to set the scene by reminding Members of some home truths about public finances. The state of Hong Kong’s public finances are the envy of the world. We have no outstanding public debt. We have substantial fiscal reserves to provide a cushion for unforeseen circumstances. Year after year we produce budgets that keep taxes low and spending under control. Visiting delegations from the International Monetary Fund, the World Bank and the major credit rating agencies come to check up on us, then go away satisfied with our sound and prudent fiscal stance. There is, of course, room for improvement but by and large we are an example to the world in how responsible governments should manage their financial affairs.

Yet this admirable state did not arise by accident. We did not get where we are today by chance. Our present success springs directly from the fact that we have identified certain key fiscal principles, and applied them steadfastly, not allowing ourselves to be blown off course. We in the Administration take great pride in our part in the process: but the Members of this Council also deserve a generous measure of praise for the full support they have given. For example, in the Public Accounts Committee, Members have expended great energies in keeping us up to the mark. Together we have generally eschewed short term political advantage for the sake of the community's long term interest.

What a tragedy it would be, Mr President, what a tragedy, if we were to now throw away the benefits of several decades of hard work for the sake of a few days' headlines. A few moments of pleasure bought at the expense of a lifetime's reputation. We would rue that day not just for ourselves, but for generations to come.

How do these principles apply to the debate today? Very simply. One of our guidelines - by no means the most important, but one element in the overall package -is that when setting the fee or charge for a particular service, we should aim to recover the full cost. There are a few exceptions: a small number of fees are tax-loaded to raise revenue; a small number (such as for education or medical services) are heavily subsidised on social grounds. But for the vast majority, the rule is "user-pays". This simple maxim is an excellent aid to fiscal prudence.

It is perhaps ironical that in defending the increases in Urban Council licence fees, the Honourable Fred Li has in effect expressed support for this "user-pays" principle. Just think what would happen if we divorced the price from the service. Once the link were broken, it would be difficult to justify any increase in the price -ever. There would be no rational basis for doing so. On the other hand, demands to improve the service would proliferate because there would be no penalty for the user. So the user-pays principle is useful because it forces both the Government and the customer to have regard to both sides of the equation.

6

There is one other factor: it is an enduring myth among some commentators that keeping fees and charges low somehow reduces the cost of providing the services. Of course it does no such thing: it simply transfers part of the burden of paying for the service to the general taxpayer. Our social services are predicated on the assumption that persons in genuine need should be identified and helped. They are not predicated on the basis that the best way to ameliorate social need is to provide an across the board subsidy for all.

One final point: freezing all Government fees and charges for one year would hold down CPI(A) by less than 0.1%. It is not a drop in the bucket, it is a drop in the ocean. Moreover the increases would not be removed, merely delayed by a year. Once the honeymoon was over, the accumulated shortfall would have to be made good.

Mr President, some Members have made reference to the nine-month moratorium on revision of Government fees and charges in 1991-92. I must say the circumstances in mid 1991 when the moratorium was introduced were rather different. At that time, the inflation rate was well into double-digits with the increase in CPI(A) hitting 13.9% in April 1991. There was widespread public concern, and fears that the situation was getting out of control. The moratorium was announced by the Financial Secretary as one of a package of inflation curbing measures. An important element of that was for the Government to take the lead and to change the mind-set that inflation was inexorable. With hindsight, we were perhaps not wholly wise in acting as we did. Be that as it may, I have already explained what the Government has done and is now doing to fight inflation. I have no doubt that our current measures are more appropriate having regard to present day circumstances.

Public housing rentals

Let me turn next to the question of public housing rentals. In fixing and reviewing domestic rental levels, the Housing Authority's prime concern is affordability. It also takes into account estate value, inflation, and its own financial position. In accordance with this policy, the Authority has approved an increase in rentals for one group of 87 estates with effect from 1 September 1995. The new rentals will represent an increase of about 8.4% a year since the last increase in September 1993. Similar reviews will be carried out progressively for other groups of estates throughout the territory. The present median ratio of rent to household income for all public rental housing is a modest 8%.

4-

- 7 -

I would be initiating another motion debate if I were to go into the rationale behind the Housing Authority’s rental policies. I must leave that to my colleague the Secretary for Housing for another suitable occasion. I shall concentrate here on whether there is a case for a temporary freeze in rent for one year as called for in the present motion.

The Financial Secretary, in his speech to this Council on 29 May 1991, expressed his confidence that the Authority would consider carefully the inflationary impact of any new rent reviews which were to be considered during the course of that year. The Authority did and has continued to do so. The Authority estimates that the total effect of this year's rental adjustments on the CPI(A) will be only in the order of 0.32%. The average annual rental increase of 8.4% referred to earlier is also below the projected inflation rate for the year.

To freeze rents for individual groups of public housing estates would be unfair and discriminatory. To avoid any rent review for a full two-year cycle would have serious financial implications for the Housing Authority which already incurs a loss on management of public rental housing. It would also set a dangerous precedent. In any case, households which face genuine difficulties can apply for help under the Rent Assistance Scheme. That must be the right way: target those who need help and give them full measure. Do not fritter away the public wealth by a blanket subsidy.

Railway fares

The MTRC and K.CRC reviewed their fares earlier this year and the current fares came into effect on 1 May. This was an annual exercise, and we do not expect that there will be another fare increase for the rail services for at least another 9 months.

At the last fare revision in May, MTRC and KCRC fares were increased by an overall average of 7.8% and 7.1% respectively, in either case well below the projected inflation rate for 1995. The increases only constitute a small component of the average household expenditure, and are expected to have minimal impact (less than 0.2%) on the Consumer Price Index CPI(A). Under the new fare schedules, there has been no increase in the concessionary fares for senior citizens, students and children for a number of fare zones. Also, special discounts for travelling before the morning peak hour have been maintained in the case of the KCR. and doubled in the case of the MTR.

8

The two Corporations are required by their governing Ordinances to operate in accordance with prudent commercial principles. To enable them to do so they are given autonomy in determining fares. The Corporations have to look at their revenues against operating costs and capital investments for service improvements before deciding whether and by how much their fares would need to be adjusted. Public acceptability of any such adjustments would also be taken into account.

The Corporations need to adjust their fares to ensure that their revenue is maintained in real terms. This enables the railway systems to grow to meet future needs. Artificially suppressing necessary fare adjustments over a period may result in the degeneration of the systems to the dissatisfaction of commuters. The Corporations would obviously have to consider carefully the long term financial implications of not adjusting their fares in any one year.

But what is most crucial is that we must leave that decision to the Corporations. Their autonomy in fare policy is vital to their commercial viability, including the ability to borrow at favourable rates to finance service improvements and expansion. The Secretary for Transport has explained at great length the philosophy behind preserving the Railway Corporations' fare autonomy at the motion debates initiated by Hon Lau Chin-shek on 12 January and 22 June 1994. The explanations are still valid. I am please to notice support from some Members for this philosophy. The Administration does not find it necessary or appropriate, even as a temporary measure, to interfere with the fare autonomy of the two Corporations. Just when the MTRC and PAA are about to borrow $23 billion on the world's financial markets to complete the Airport Railway and the new Airport, what kind of message are we trying to send with a motion urging the Government to intervene and force the two Railway Corporations to act contrary to the prudent commercial principles which by law they must follow.

I do not propose to dwell overlong on the issue of rates. To freeze rates retrospectively from 1995-96 would cost us $1.2 billion. If the moratorium were to continue in 1996-97, the total revenue foregone would amount to $3 billion. This would seriously undermine rates as a fair and stable source of revenue. The effect on easing inflation would not be substantial as the increase in rates in 1995-96 will add no more than 0.1% to CPI(A). Moreover, let me remind Members that those living in public rental housing, who account for about 50% of our population, will not be directly affected by the rates increase. The immediate effect of the increase will be absorbed by the Housing Authority until rents come up for revision. There arc thus sufficient relief measures to moderate the impact of rates increases on the less well off. Its effect on inflation is not significant. It would result in serious revenue foregone. It is neither necessary nor justified.

9

Conclusion

At this point I would like to pay tribute to those Members who have spoken up this afternoon for common sense. This is a quality with which the people of Hong Kong are well endowed. They will be well able to distinguish between those who show the false light of instant remedy, and those who, show the courage that is the mark of true leadership. This motion has nothing whatever to do with unemployment and little if anything to do with inflation.

In conclusion, Mr President, I would say only this. There will be no functional constituency for fiscal prudence in the September elections, nor any candidate of that name. But that does not mean the cause is not worthy of Members votes today. On the contrary, it deserves the support of every Member of this chamber. I am sure it is a cause which on mature and sober reflection would attract the widest support from the community at large.

End/Wcdnesday, July 5, 1995

Official Languages (Amendment) Bill: committee stage

*****

Following is the speech by the Chief Secretary, the Hon Anson Chan, at the committee stage of the Official Languages (Amendment) Bill 1995 in the Legislative Council today (Wednesday).

Mr President,

I move that the clauses specified be amended as set out in the paper circulated to Members.

The amendments to Clauses 8 and 9 are technical in nature. They seek to provide the Chinese language counterparts to two prescribed forms in the Oaths and Declaration Ordinance (Cap. 11). These forms are used for the making of a statutory declaration by a person who is unfamiliar with the official language in which the declaration is made and by the responsible interpreter.

10

The amendment to Clause 13 seeks to clarify the proposed consequential amendments to section 65B(3)(c) of the Criminal Procedure Ordinance (Cap. 221) to make it clear that only a statement tendered in evidence which is not made in an official language will need a translation in an official language.

The amendment to Clause 15 clarifies that proceedings in Magistrates’ Courts may be recorded by means of shorthand notes or by mechanical or other means, as an alternative to full minute writing.

Mr President, 1 beg to move.

End/Wednesday, July 5. 1995

Wider use of Chinese in courts welcomed

*****

The Judiciary welcomes the passage of the Official l anguages (Amendment) Bill 1995 in the Legislative Council today (Wednesday) as it is another step to enhance the wider use of Chinese in courts.

The Bill would provide the Chief Justice with the power to phase in the use of Chinese in court proceedings at different levels of Hong Kong courts.

A spokesman for the Judiciary said the wider use of Chinese in courts would provide an option to members of the public who felt that justice would be best served by the use of Chinese in their cases.

At present, either Chinese or English could be used in the scheduled courts which include the Magistrates’ Courts, Coroner's Court. Juvenile Court. Immigration Tribunal, Small Claims Tribunal, Labour Tribunal, Municipal Services Appeals Board, Administrative Appeals Board and Minor Employment Claims Adjudication Board. In the District Court or above, proceedings could be conducted only in English with the assistance of court interpreters or translators.

fhe use of Chinese in courts would be a complex exercise.

’’The Chief Justice will decide on the pace of the implementation having regard to the experience gained from a scries of trial schemes which are due to start in August.

11

"Our aim is to put in place a framework which will allow the use of Chinese, along with English, in all judicial proceedings by July 1, 1997," the spokesman added.

As the implementation would be in phases, the spokesman reiterated that the present practice in which only English court documents would be accepted for filing in the District Court or above and all documents to be produced in courts must be translated into English and certified by official translators would continue.

"When the courts are ready to accept the filing and production of documents in Chinese, a public announcement will be duly made," the spokesman said.

End/Wednesday, July 5, 1995

Supreme Court (Amendment) Bill 1995

*****

Following is the speech by the Attorney General, the Hon Jeremy Mathews, in moving the second reading of the Supreme Court (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I am most grateful to the Chairman of the Bills Committee, the Hon. Andrew Wong, and to Members of the Bills Committee for their study of this short but important Bill. The proposal to make solicitors who have practised as such in Hong Kong for 10 years eligible for direct appointment as Supreme Court judges would extend the pool of eligible candidates and would ensure that no suitable lawyer is excluded from consideration.

When considering the Bill, Members of the Bills Committee quite rightly asked whether this amendment could lead to the appointment of unsuitable persons and therefore asked for, and were supplied with, the criteria adopted by the Judicial Service Commission when considering the suitability of candidates. It is not for the Administration to comment on these criteria, since the Judicial Service Commission is an independent body. However, I understand that the disclosure of the criteria to the Bills Committee has reassured most Members of the Committee that inappropriate appointments are best avoided by considering the suitability of a candidate, rather than by imposing a narrow test of eligibility.

12

Mr President, I would agree with the observations of the Hon Simon Ip about bringing in the JSC into the debate on this Bill. I would simply add that the transparency of the Judicial Service Commission is of course regulated by the Judicial Service Commission Ordinance passed within the last seven years by this Council and which imposes an obligation on confidentiality.

Mr President, the debate this afternoon has focused crisply, sharply on advocacy experience. Could I Mr President deal with the assertion, suggestion that this Bill would create an anomaly, a serious anomaly. It is argued that a barrister would need to practise as an advocate for at least 10 years before being eligible for appointment. Whereas a solicitor would only need to practise as a solicitor for that period without necessarily having advocacy experience.

Mr President, I do not accept for one minute that such an anomaly would arise. I do not interpret the present provision relating to barristers as requiring 10 years' advocacy experience. Under the current law. a person who is qualified to practise as an advocate, which include a barrister, is eligible for appointment to the Supreme Court bench if he or she has for at least 10 years' practice as an advocate or a solicitor in certain jurisdictions.

In the context of that provision, 1 take the view that a person who practises as a barrister also practises as an advocate irrespective of whether he or she regularly appears in Court. If this were not the case, a solicitor with 10 years' experience as such but with no advocacy experience could become eligible for Supreme Court appointment by becoming a barrister. But a barrister with 10 years' experience as such but with no advocacy experience would not be eligible.

Mr President, you arc going to have got it set it out like that to see that it simply cannot be right. I therefore take the view that the Bill if passed would not mean that solicitors can be eligible without advocacy experience but barristers cannot. However, I'm bound to point out. Mr President, that if the alleged anomaly would be a problem it could have been avoided by clarifying the eligibility criteria for barristers long ago. And the fact is that no one has sought to do that, rather suggesting to me that opponents of the Bill are not concerned with avoiding anomaly.

The Committee Stage Amendmeni

Perhaps I can say something. Mr President, about the Committee Stage Amendment that the Hon. Martin Lee will be moving later on this afternoon. The Bar Association has always opposed the amendment set out in the Bill and has argued that advocacy or judicial experience should be pre-requisites for appointment to the Supreme Court bench.

13

Mr President, you’ve heard from the Hon Simon Ip and others the detailed assessment of the Australian Government with which we fully agree. Perhaps I can just remind members of what that says, what the discussion paper says is this: there are many elements included within the term advocacy skills, including ability in oral communication and knowledge of the rules of evidence and practice and procedure. Ilie paper concludes that "these elements of advocacy skills arc not the exclusive skills of advocates .... These skills are generally relevant to the work of solicitors, academic lawyers, and government lawyers and are acquired by them in the course of their work”.

The Administration accepts and agrees with those statements and does not accept the Bar’s position. Advocacy experience is not, as I've explained, a current requirement for any judicial appointment in Hong Kong. And we know of no other Common Law jurisdiction where it is a requirement. There are many skills, as we heard this afternoon, many qualities that a judge requires, including the ability to administer legal processes efficiently and effectively, the right judicial temperament, and local knowledge. It would be wrong to single out advocacy experience and to make it a pre-requisite for appointment.

The amendment that would be moved later on this afternoon would limit the extension of the eligibility criteria set out in the Bill. It would also replace all existing criteria for appointment to the Supreme Court of persons other than District Court judges or magistrates.

At present there are several different categories of persons who are eligible for appointment to the Supreme Court. The Bill as currently drafted proposes to extend the pool of those who are eligible. The proposed Committee Stage amendment would involve the deletion of all categories of eligible persons (other than District judges and magistrates). Eligibility would then be restricted to barristers and solicitors qualified in Hong Kong, the United Kingdom or the Republic of Ireland who have for not less than 10 years -

"been engaged in work that would if undertaken in Hong Kong be similar to that usually undertaken by an advocate (whether barrister or solicitor) in the course of a regular practice as such advocate in the Supreme or District Court."

14

Mr President, the amendment to be moved later on has serious and wide-reaching implications for appointments to the Supreme Court bench, but these implications, I am afraid, do not appear to have been thought through by those proposing the amendment. When we get to Committee, I will be saying something more about what I would regard as the technical defects, the amendment. But suffice it to say that I am in full agreement with the sentiment expressed by the Hon Simon Ip and Miriam Lau and others this afternoon and would urge this Council to support the Bill in its unamended form and to reject the proposed amendment.

Mr President, it is crucial for the administration of justice and the rule of law in Hong Kong that experienced lawyers who are suitable for appointment to the Supreme Court should not be excluded from appointment by narrow eligibility requirements. The Bill will help to prevent this happening and I urge all Members to support it, unamended.

I

End/Wedncsday, July 5, 1995

AG urges support for Supreme Court Bill *****

The Attorney General, the Hon Jeremy Mathews, today (Wednesday) urged Legislative Councillors to support the Supreme Court (Amendment) Bill 1995 which proposes to extend the pool of eligible candidates for appointment as Supreme Court judges. The Bill was passed today.

Speaking at the resumed second reading debate of the Bill in LegCo, Mr Mathews said the Bill, which proposed to make solicitors who had practised in Hong Kong for 10 years eligible for direct appointment as Supreme Court judges, would extend the pool of eligible candidates and ensure that no suitable lawyer was excluded from consideration.

He also urged Members to reject an amendment moved by the I Ion Marlin Lee, which was based on a Bar Association proposal arguing that advocacy or judicial experience should be pre-requisites for appointment to the Supreme Court bench.

He told legislators that the amendment would not only limit the extension of the eligibility criteria set out in the Bill, but it would also replace as existing criteria for appointment to the Supreme Court of persons other than District Court judges and magistrates.

15

Mr Mathews pointed out that advocacy experience was not a current requirement for any judicial appointment in Hong Kong, and there was no other common law jurisdiction where it was a requirement.

He referred to a discussion paper issued by the Australian Government which demonstrated that there are many elements included within the term "advocacy skills", including ability in oral communication and knowledge of the rules of evidence and practice and procedure.

"The paper concludes that ’these elements of advocacy skills are not the exclusive skills of advocates .... These skills are generally relevant to the work of solicitors, academic lawyers, and government lawyers and are acquired by them in the course of their work'," he said.

"There arc many skills, as we heard this afternoon, and qualities that a judge requires, including the ability to administer legal processes efficiently and effectively, the right judicial temperament, and local knowledge. It would be wrong to single out. advocacy experience and to make it a pre-requisite for appointment," he added.

He said the amendment moved by Mr Lee had serious and wide-reaching implications for appointments to the Supreme Court bench, and the Administration had identified the following problems:

* Under the current law, lawyers who arc qualified in a Commonwealth country other than the United Kingdom, Ireland or Hong Kong can become eligible for appointment to the Supreme Court, and there arc several Supreme Court judges with such qualifications: under the Committee Stage Amendment persons with such qualifications could not become eligible.

* The amendment could make it more difficult than at present to recruit judges for the Supreme Court.

* The Committee Stage Amendment would make the eligibility criteria for appointment to the Supreme Court completely different from those for the District Court and magistracy.

The Attorney General said it was crucial for the administration of justice and the rule of law in Hong Kong that experienced lawyers who were suitable for appointment to the Supreme Court should not be excluded from appointment by narrow eligibility requirements.

"The Bill will help to prevent this happening and I urge all Members to support it," he said.

End/Wednesday, July 5. 1995

16

Occupational Retirement Schemes (Amendment) Bill 1995 *****

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, at the resumption of the second reading debate of the Occupational Retirement Schemes (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I would like to thank the Bills Committee under the chairmanship of the Hon Marvin Cheung as well as its technical sub-group led by the I Ion Peter Wong for their careful consideration of the bill. I would also like to express my appreciation to the professional and trade organisations for their valuable advice.

When introducing the Bill, I explained that we proposed to relax investment restrictions in mutual funds and in shares listed on emerging stock markets. Members have questioned the Administration's reasons for permitting investments in emerging stock markets, as they appeared to involve a higher investment risk than investments in established stock markets. I should point out that, under the present Occupational t Retirement Schemes Ordinance, the Registrar has discretion to approve investments in companies not listed on the Hong Kong Stock Exchange or in emerging stock markets on application by fund managers. Moreover, we feel that it should not be the Registrar's role to act as an investment adviser to scheme administrators or trustees, since they already have a duty to perform in the best interests of their beneficiaries. A total ban on investment in emerging markets is therefore unnecessary. And we have accordingly proposed a limited relaxation of the investment restrictions.

To address the concern expressed by the Bills Committee that a scheme administrator could, whilst observing the 15 per cent investment restriction, avoid disclosure of investments in emerging stock markets to the consultative committee of a registered scheme, we have proposed that, where, in aggregate, investment in these markets constitutes five per cent or more of a scheme's assets, disclosure at the request of the consultative committee should be required.

17

As Members have pointed out, the Bill would no longer permit investments in the share capital of "non-listed" companies made before the commencement of the Ordinance, that is, 15th October 1993. This was not our intention. Committee Stage Amendments will be moved later today to clarify that such investments will be allowed and that the 15 per cent of the assets of the scheme which may be invested in shares of emerging stock markets is not in addition to any such investments made before 15th October 1993. However, the scheme’s administrator will need the Registrar's permission before making investments that arise directly from entitlements attached to investments held before 15th October 1993. In granting permission the Registrar will have to be satisfied that the investments derive directly from previous entitlements and have become available in the normal course of business, and that the registered scheme would be disadvantaged if the investments were not made. The Registrar is also empowered to issue guidelines explaining what evidence or documentary material would be required to prove that the investments meet those criteria.

The Bill also proposes to impose a requirement to obtain the approval of the Registrar before making any changes to the particulars of a scheme, for instance, to the scheme’s name, to the relevant employer of an exempted scheme or a registered scheme, or to the representative employer of a scheme of a group of companies. Members have questioned the need for such prior approval. Having considered the administrative difficulties which the relevant employer may face in seeking prior approval for such changes, we propose to replace the prior approval requirement with a notification requirement. I shall move Committee Stage amendments later today for this purpose and consequentially to adjust the level of penalties for defaults in complying with amended provisions.

Members have questioned whether section 67 of the Occupational Retirement Schemes Ordinance, which provides for the registration of schemes operated by a group of companies, has met its intended purpose. The original intention of section 67 was to permit a group of companies, each of which has a significant influence over each other, to nominate a representative employer to operate a common scheme. It would be undesirable to allow loosely connected parties to operate such a scheme as there would be no clearly binding influence operating amongst them. However, the Ordinance does not empower the Registrar to refuse an application from a relevant employer who does not fall within the relationship specified in section 67. To address this deficiency, we propose that the Ordinance be amended to reflect the policy intention that an occupational retirement scheme may be operated by two or more employers only if they fall within such a group relationship. Such a group could consist of a holding company, its subsidiaries and associated companies.

•$; ‘ni’ a

18

As an additional safeguard, we propose that, where the structure of a grouping of companies changes in such a way that a relevant employer in a scheme ceases to comply with the specified relationship requirement, it must withdraw from the scheme as soon as is reasonably practicable.

Mr President, with these remarks, I commend the Occupational Retirement Schemes (Amendment) Bill to Members.

End/Wednesday, July 5, 1995

Occupational Retirement Schemes (Amendment) Bill: committee stage ♦ ♦ ♦ * ♦

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, at the committee stage of the Occupational Retirement Schemes (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the clauses specified be amended as set out in the paper circulated to members.

Proposed sections 10( 1 )(d) and (e) as well as section 21A are amended, through clause 5(1) and clause 12, to provide that relevant employers operating exempted schemes and registered schemes shall notify the Registrar of a change to the name of the scheme and a change of the relevant employer within one month of the change. These amendments revise the requirement in the Bill for prior approval of the changes by the Registrar.

Similarly, proposed section 67(2) is amended, through clause 16(2), to provide that the representative employer of a scheme covering a group of companies shall notify the Registrar of a change of representative employer, of a change of the scheme’s name and any change of the scheme’s administrator within one month of the change.

Proposed sections 10(3) and (3AA), 21A(3) and (4), 67(3), (8A) and (8B) provide that, if the relevant employer of a registered scheme or an exempted scheme or the representative employer of a group scheme fails to notify the Registrar of the relevant changes, he commits an offence and is liable to a fine of $2,000 for failure to give notice of the change of name of the scheme, and a fine of $10,000 for failure to give notice of the change of relevant employer or administrator of the scheme.

19

Clause 17 amends section 73(1) to provide that the Registrar may make rules for details to be supplied on notice of changes to registered schemes, exempted schemes and pooling agreements.

Proposed section 27(l)(b) is amended, through clause 13, to clarify that investments may be made in mutual fund corporations. This will place investments in mutual funds on a par with investments in, say, unit trusts, for which there are no restrictions.

Proposed section 27(2)(c) is amended, through clause 13(2), to provide that, subject to a limitation of 15% of the assets of the scheme under the proposed subsection (3)(a), no asset of the scheme acquired on or after 15th October 1993 shall consist of investments in the share capital of a body corporate which share is not publicly listed on a stock exchange recognised by the Securities and Futures Commission. Proposed subsection 27(3)(a) further clarifies that the 15% of the assets of the scheme is not in addition to any investment of the same nature held before 15th October 1993.

Proposed section 27(3)(c) is added, through clause 13(3), to provide that the administrator shall have to obtain the Registrar’s permission before making investments that derive directly from entitlements attached to investments held before 15th October 1993. He has to satisfy the Registrar that the investments derive directly from prior entitlements, have become available in the normal course of business, and that the registered scheme would be disadvantaged if the investments were not made. Proposed section 27(4) is added to enable the Registrar to issue guidelines explaining what evidence or documentary material would be required to prove that the investments met those criteria.

Proposed sections 67(1) and 67(1 A) to (1G) are added, through clause 16, to clarify that an occupational retirement scheme may be operated by two or more employers provided that they fall within the specified relationship, that is, they are within a defined grouping of companies. For this purpose, companies are regarded as within a grouping of companies if they consist of a holding company, its subsidiaries or associated companies. Companies are regarded as associated if one of them controls at least 20 per cent of the voting power of the other company's general meetings or they are partners operating under a written partnership agreement of are subsidiaries of any such companies. The purpose of this amendment is to ensure that a group of associated companies is able to make proper collective decisions in the operation of a common occupational retirement scheme.

20

If a relevant employer in a scheme that covers two or more employers ceases to comply with the specified relationship requirement, the relevant employer shall notify the representative employer and the Registrar and then withdraw from the scheme either by transferring the rights of the members employed by the withdrawing relevant employer and corresponding assets of the scheme to another registered scheme or by winding up that part of the scheme which relates to the withdrawing relevant employer. If a relevant employer fails to notify the representative employer or the Registrar, or fails to withdraw from the scheme, he commits an offence and is liable to a fine of $10,000 for each offence. The purpose of these provisions is to safeguard the interests of scheme members.

Clause 16(2) amends section 67(2) to provide that the representative employer of an exempted scheme must provide annually to the Registrar documentary evidence of the scheme’s eligibility for exemption so as to satisfy the reporting requirements for an exempted scheme under section 10 of the Ordinance.

Mr President, I beg to move.

End/Wednesday, July 5, 1995

Occupation Retirement Schemes (Amendment) Bill: new clauses ♦ * * * ♦

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, in moving the second reading of the Occupation Retirement Scheme (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that new clauses 4A, 9A, 12A, 13A and 15A as set out in the paper circulated to members be read a second time. I briefly highlight two of these.

Clause 12A .amends section 22(2) to require that the designated person of a registered scheme shall notify the Registrar of any change of his name or address or the name or address of the administrator of the scheme which was previously supplied to the Registrar within one month of the change. The time period allowed for notification of the change is consistent with that allowed for notification of other changes.

21

Clause 13A amends section 35(2)(b) to provide that, where, in aggregate, investment in unrecognised markets exceeds five per cent, of the market value of a scheme's assets, disclosure at the request of the consultative committee shall be required so that members of the scheme may have information about the scheme's exposure to restricted investments.

End/Wednesday, July 5, 1995

Inland Revenue (Amendment) Bill: second reading *****

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, at the resumption of second reading of the Inland Revenue (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I thank the Honourable Lau Wah-sum for his clear exposition of the purposes of the Bill, the discussion at the Bills Committee and the Administration's response to the points raised.

The Bills Committee, chaired by the Honourable Lau Wah-sum, has offered valuable advice to us. We arc grateful for the Committee's support for the Bill and its commendable efficiency in completing the detailed scrutiny of this short but complex and technical piece of legislation in three meetings only within a period of about one month.

We also thank the various parties, including, of course, the Hong Kong Society of Accountants, who made submissions on the Bill to the Committee.

All these significantly helped us to improve and refine the Bill. As .a result, 1 shall be moving a number of amendments, which have been agreed with the Bills Committee, later on at Committee Stage. We welcome the Bills Committee's backing for those amendments.

Before I do so, let me emphasize three crucial points.

22

First, the scope of the Bill. Our aim is to target the use of a service company to disguise an employment relationship. It is not our intention to catch genuine business arrangements. For the avoidance of doubt, I will be proposing amendments at Committee Stage to make it clear that genuine contracts for services, i.e. not employment, involving the use of a service company would not be caught by this Bill, whether the operation is in the form of sole proprietorship or partnership.

Second, certainty. The Commissioner of Inland Revenue will provide an advance ruling system in order to minimize uncertainty and potential disputes. In short, he will, upon application and the submission of the relevant documents, advise the applicants whether the service agreement in question falls within the ambit of the proposed legislation. The'Commissioner will set out the details of the arrangement in a Practice Note. This will, as the Honourable Eric Li urged, be down as a matter of priority.

Third, retrospectivity. Let me reassure Members that this Bill, when enacted, will not have any retrospective effect.

Subject to the enactment of this Bill, we intend to implement the new legislation in August this year.

Mr President, with these remarks, I commend this Bill to the Council, subject to the amendments which I shall move shortly.

End/Wednesday. July 5, 1995

Inland Revenue (Amendment) Bill: committee stage (Clauses 1 and 2) *****

Following is the speech by the Secretary for the Treasury. Mr K C Kwong, at the committee stage of the Inland Revenue (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that Clauses 1 and 2 be amended as set out in my name in the paper circulated to Members.

23

The amendment to Clause 1 is a technical one as the present Bill, if passed today, will be the second amendment to the Inland Revenue Ordinance in 1995.

Most of the amendments to Clause 2 are technical in nature, but I would try to explain briefly the main ones which are of particular concern to the Bills Committee.

First, I propose to add section 9A(1A) to cater for situations where the remuneration under a service agreement includes items other than the remuneration for the services rendered by the individual (i.e. the employee). In these circumstances, the “employee" or the "employer" should be able to advise the Commissioner of Inland Revenue what is the exact amount of the remuneration for the services and what is not. We therefore believe, and the Bills Committee agreed, that it is reasonable to put the onus on them to satisfy the Commissioner that certain sums are not related to the services rendered and thus should be excluded from the remuneration for the assessment of salaries tax. Subject to such an exclusion, the Commissioner will otherwise treat the whole remuneration under the agreement as the amount chargeable to salaries tax accordingly.

I also seek to amend the proposed section 9A(2) to exclude genuine contractors, for instance, home decorators or architects, who are required under a service agreement to carry out services personally but who also provide the same or similar services to other clients at the same time. These are contracts for services, not contracts of employment.

An amendment to the proposed section 9A(3) is necessary to clarify the circumstances under which business agreements bearing some of the common characteristics of employment may be granted relief at the Commissioner's discretion if the Commissioner, having examined the full picture of the case, is satisfied that the nature of the relationship between the parties does not constitute an office or employment of profit. This is an escape provision.

After careful discussion in the Bills Committee, I now seek to delete the proposed section 9A(4). A Privy Council case from New Zealand, which has persuasive authority in Hong Kong, established that the general anti-avoidance provision can be applied notwithstanding that a specific anti-avoidance provision has been put in place. We firmly believe that the principle is applicable in Hong Kong. This is by no means double jeopardy. The proposed subsection (4) sought to do no more than spell out this point in order to avoid doubt. The consensus we reached in the Bills Committee, however, is that we should leave the legal position as it is and allow the courts to decide and the common law to develop. But meanwhile, we will apply both the general and the specific anti-avoidance provisions where necessary.

24

I also seek to amend the proposed section 9A by adding subsection (6A)(a) to deal with the situation whereby the service company provides the services of more than one individual under the agreement. By virtue of this amendment, the proposed anti-avoidance provision will apply to the individuals individually, and not collectively.

Finally, as I have made clear earlier, it is not our intention to target professional practitioners using a service company in this legislative exercise. To clarify this, we specify in the proposed section 9A(6A)(b) in respect of sole proprietorship or partnership the circumstances under which the new anti-avoidance provision will not apply.

Mr President, I beg to move.

End/Wednesday, July 5, 1995

Inland Revenue (Amendment) Bill: committee stage (new clause) *****

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, at the committee stage to add a new clause to the Inland Revenue (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that new clause 3 as set out in my name in the paper circulated to Members be read the second time.

Some Members have expressed concern that the Bill may impose an onerous burden on the employers. The reporting requirements under the Inland Revenue Ordinance would apply to the employers if the service agreement falls within the ambit of the proposed section 9A. Whilst an employer should know very clearly whether a contract with a service company is in effect one for the provision of services by a particular individual, it may be difficult for him to know or verify whether the individual in fact controls the service company. He may therefore not be in a position to judge whether the agreement is one which falls within the ambit of the proposed section 9A. This is especially the case for small businesses which may not be able to seek professional advice.

25

To address this concern, we have agreed with the Bills Committee to add a new clause to amend section 80 of the Ordinance. Under this new provision, the employer may rely on the individual (i.e. the "employee”) to provide a statement in writing in a form specified by the Commissioner of Inland Revenue to the effect that the agreement in question does not render the individual chargeable to salaries tax. The employer will have a defence in any proceedings against him for failure to report if he shows that he did not comply with the reporting requirements because he relied upon the statement in writing by the relevant individual and that it was reasonable for him to rely upon that statement in the circumstances. This would help the employer to discharge his responsibility. Together with the advance ruling system to which I referred in my speech on the resumption of the Second Reading, we are confident that employers should have no difficulties in ascertaining and discharging their responsibilities.

In respect of the "employee" or the relevant individual, the Commissioner will specify a standard form so that the individual knows exactly what information he has to provide in the written statement. The Commissioner will design the form in such a way that the relevant individual only needs to report factual information. There is no need for him to provide information of a judgemental nature. However, if he knowingly or recklessly makes a statement which is materially false or misleading, he will be guilty of an offence which carries a maximum fine at Level 3, or $10,000.

The Commissioner will issue a Practice Note to set out the details of the arrangements.

Mr President. I beg to move.

End/Wednesday, July 5, 1995

Professional Accountants (Amendment) Bill *****

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, in moving the second reading of the Professional Accountants (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Professional Accountants (Amendment) Bill

1995.

26

The amendments to the Professional Accountants Ordinance specify the conditions under which incorporated auditing practices may register with the Hong Kong Society of Accountants (the HKSA), and make a number of other amendments consequential to this.

The HKSA has expressed concern to the Administration about the growing size and extent of claims against auditors overseas and the fact that auditors in Hong Kong were potentially similarly exposed because of the law relating to joint and several liability and related issues. They considered it to be inequitable that a partner in a firm could be held personally liable for claims arising from the professional negligence of other partners and suggested that there was evidence that this situation was deterring new entrants to the profession overseas. One proposal put forward by the HKSA was to permit accountancy firms to form limited liability companies, which they believed would help bring the extent of personal liability taken by the principals in a practice within known and reasonable bounds. This is a facility that is already permitted in a number of jurisdictions overseas.

Following consultation with the Standing Committee on Company Law Reform, the Administration indicated that if the proposal were to be pursued, assurances would need to be given that adequate standards of auditing would be maintained and that incorporated practices would take out sufficient levels of Professional Indemnity Insurance to meet claims against them.

Since that time steps have been taken to address these concerns. A Practice Review programme was introduced by the HKSA in 1992, the objective of which is to review the compliance of all practice units with accounting and professional standards. Reviews are progressively being undertaken with all practices regulated by the HKSA and follow-up visits have been instituted for problem practices. Ultimately, the HKSA is empowered to take disciplinary action against those who persistently fail to comply with the requisite standards.

On the question of Professional Indemnity Insurance, the Society has negotiated a Master Insurance Policy to which all incorporated practices will be required to subscribe. This will provide the minimum required levels of insurance coverage for smaller practices. Larger practices will be required to take out additional minimum cover based on either a multiple of their gross fee income or an amount per principal. These minimum levels of insurance will be specified rules to be made by the HKSA Council. The general guideline will be for incorporated practices to take reasonable steps to be able to meet claims against them.

27

Clause 8 of the Professional Accountants (Amendment) Bill 1995 specifies the conditions that an incorporated auditing practice must meet in order to register and remain registered. In addition to meeting requirements relating to insurance cover and the contents of memoranda and articles of association, corporate practices will also need to comply with requirements relating to members and directors. Except in the case of a two-member incorporated practice, all directors and members must be registered as professional accountants. Members and directors of an incorporated practice may not themselves be corporations. These provisions are intended to ensure that incorporated practices remain independent and under the control of accountants. In the case of a two-member incorporated practice, one member may with the permission of the HKSA Council, be a non-accountant. However, under these circumstances, provision is made to ensure the accountant member retains control of the practice. An incorporated practice that ceases to comply with the registration requirements may be deregistered or conditions may be attached to its continued registration.

Clause 16 of the Bill extends the ambit of disciplinary offences to incorporated practices as well as adding new offences specific to such practices. Clauses 18 to 20 extend appeal and general offence provisions to cover the new regime for incorporated practices. Clause 23 enables the HKSA Council to make rules relating to insurance and related requirements.

Most of the remaining provisions are consequential extensions of existing provisions of the Ordinance, suitably adapted to apply to companies.

Other measures have been taken in conjunction with the proposed legislation to ensure that the interests of the public remain adequately protected. These include :

(a) firstly, agreement by the HKSA to consult the Administration fully on the rules relating to incorporation of auditing practices and on any future changes to them; and

(b) secondly, measures to ensure that the director of an incorporated practice responsible for a particular audit is clearly identified. In addition to pursuing a claim against an incorporated practice, an aggrieved party, depending on the circumstances, may also be able to pursue a claim against the principal concerned if the negligent individual assumed a personal duty of care. Identification of the auditor concerned should facilitate such action.

The proposals will strike a reasonable balance between protecting blameless auditors from undue liability resulting from the professional negligence of their partners, and safeguarding the interests of audit clients and other interested parties.

End/Wednesday, July 5, 1995

28

Supplementary Appropriation (1994-95) Bill 1995 *****

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the second reading of the Supplementary Appropriation (1994-95) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the Supplementary Appropriation (1994-95) Bill 1995 be read the second time.

Section 9 of the Public Finance Ordinance states that "If at the close of account for any financial year it is found that expenditure charged to any head is in excess of the sum appropriated for that head by an Appropriation Ordinance, the excess shall be included in a Supplementary Appropriation Bill which shall be introduced into the Legislative Council as soon as practicable after the close of the financial year to which the excess expenditure relates".

The accounts for the financial year 1994-95 have been finalised by the Director of Accounting Services. The expenditure charged to 67 heads out of a total of 80 heads is in excess of the sum appropriated for those heads in the Appropriation Ordinance 1994. This is because sufficient offsetting savings could not be found within the heads concerned. In accordance with section 9 of the Public Finance Ordinance, this excess has been included in the Supplementary Appropriation (1994-95) Bill 1995 now before Members. The Bill seeks to give final legislative authority for the amount of supplementary provision approved in respect of particular heads of expenditure by the Finance Committee or under powers delegated by it.

The total supplementary appropriation required in respect of the 67 heads of expenditure is $18,589.8 million. This excess is largely attributable to increased requirements for transfers to the Loan Fund ($7,000.0 million) and the Civil Service Pension Reserve Fund ($7,000.0 million) offset partly by a reduced transfer to the Capital Investment Fund ($2,000.0 million). Other major contributing factors include the implementation of the 1994 pay adjustment in respect of the Civil Service and Government subvented organisations ($5,241.1 million), the increased expenditure under the comprehensive social security assistance and social security allowance schemes ($623.8 million), and additional expenditure on pension payment ($258.0 million).

29

The cost of the 1994 pay adjustment, the inflation related adjustment to payments under the Comprehensive Social Security Assistance and Social Security Allowance schemes and the additional payments arising from the statutory inflation-linked adjustment to pensions were anticipated in the 1994-95 estimates under the "Additional Commitments" subhead. Savings were also made in other subheads through continued tight control over public expenditure. Taking these into account, total payments from the General Revenue Account is $10,158 million greater than the amount originally included in the Appropriation Ordinance. This net excess is accounted for entirely by the transfers to the Loan Fund and the Civil Service Pension Reserve Fund which I referred to earlier.

End/Wednesday, July 5, 1995

Companies (Amendment) (No. 2) Bill ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, in moving the second reading of the Companies (Amendment) (No. 2) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Companies (Amendment) (No. 2) Bill 1995.

The main purpose of the Bill is to remove the prohibition on the appointment of a body corporate as an auditor of a company, under section 140 of the Companies Ordinance. The other amendments are primarily consequential, to extend the rights and obligations currently applicable to non-corporate auditors to incorporated auditing practices. The opportunity is also taken to make certain minor technical and tidying-up amendments.

Auditing practices wishing to incorporate will have to comply with a number of conditions and limitations. I will say more about this in the context of the Professional Accountants (Amendment) Bill 1995.

End/Wednesday, July 5, 1995

30

Education for children from China ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Tik Chi-yuen and a reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

Regarding the Government's recent announcement that the Chinese Government will increase the quota of one-way permits to enable some children to $ settle in the territory, will the Government inform this Council:

(a) whether it has taken into account the education needs of these children in formulating education policies;

(b) what measures have been put in place to cope with the increased demand for school places; and

(c) whether any measures will be formulated to help such children and their parents to settle down in the territory; if so, how much will it cost for implementing these measures and what is the timetable for ,, implementation?

Reply:

Mr President,

(a) The needs arising from the increase in Chinese immigrant children have been taken into account in formulating various aspects of education policies.

• '< vt

(b) Based on past statistics on the profile of immigrants from China, the Education Department has fully assessed the capacity of the present system to cope with the revised forecast demand and the need for additional school places. The Government has now earmarked capital expenditure of $208 million for building 5 new primary schools for completion in 1997/98. It will also conduct a review of longer term requirements in 1996 in the light of more information on new arrivals. In the meantime, any additional demand for school places will be met by existing school vacancies and extra places made available by the decline in secondary school population from 1996.

31

(c) The Department has also taken steps to help immigrant children and their parents settle down in Hong Kong. This is done through a special induction programme, school placement services, and school-based remedial teaching and counselling services. In April 1995, with the help of voluntary agencies, a new induction programme was launched to help immigrant children integrate more quickly into the local environment. This is being expanded to cater for additional immigrant children arriving under the increased quota from 1 July 1995. The estimated cost for running this programme is $8.3 million per annum, and 10,000 new immigrant children are expected to benefit from it every year. For school placement services, District Education Offices will continue to assist newly arrived immigrant children. In addition, schools have been advised to give special attention to these children, providing them with appropriate remedial teaching and school guidance and counselling services.

For parents of the immigrant families, adult orientation courses have been run by non-profit making voluntary agencies with Government subvention since 1981. A sum of $0.27 million has been earmarked in 1995/96 for such courses.

On the welfare side, the Hong Kong Branch of the International Social Service, a subvented agency, provides post-migration programmes to help new immigrants from China settle down in Hong Kong. Orientation sessions, language and tutorial classes, and referral services are provided. In this financial year, $1.17 million was granted to the agency for this purpose. The Social Welfare Department has also secured another premises for the agency to expand its post-migration service in 1996. Besides, new immigrants from China who are in need can also use the counselling and family support services provided by the 62 family services centres in Hong Kong to seek assistance.

End/Wednesday, July 5, 1995

32

Maintenance of public housing estates * * ♦ ♦ ♦

Following is a question by the Hon Tam Yiu-chung and a reply by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council today (Wednesday):

Question:

In view of the incident in which a concrete block fell from the ceiling in flat at Kwai Chung Estate which is over 30 years old, will the Government inform this Council whether:

(a) inspections will be carried out regularly on the structural safety of buildings in old public housing estates; and

(b) the Housing Department will speed up the redevelopment and demolition of old public housing estates so as to prevent the recurrence of similar incidents?

Answer:

Mr President,

All housing blocks built before 1981 are inspected regularly by Housing Department structural engineers for structural safety. The frequency of inspections depends on the structural condition of each block, but a two-year cycle is typical.

Estate management staff also inspect the general condition of each flat at least once every 18 months. The focus of this type of inspection is on spalling concrete and water seepage. Where necessary, maintenance surveyors, structural engineers and consultants will participate in such inspections.

The Housing Authority has a Comprehensive Redevelopment Programme for old housing blocks. Redevelopment is determined having regard to various factors, such as structural and general conditions of the block, facilities available in each flat and community facilities provided in the housing estate. Another factor affecting the timing is the availability of flats for rehousing existing tenants, particularly as most of them prefer to remain in the same district.

33

Of the 885 old blocks, 304 have already been demolished and redeveloped. In the next five years, the Housing Authority will redevelop another 185 blocks, comprising 77,000 flats or nearly 12% of its total rental stock. This is a high proportion, and any further acceleration of the programme without very good reason will adversely affect the provision of public rental housing to families on the general waiting list. Nevertheless, the Housing Authority will review its Redevelopment Programme regularly, and full account will be taken of any housing block found to have structural defects.

End/Wednesday, July 5, 1995

Sub-standard housing estates ♦ * ♦ ♦ ♦

Following is a question by the Hon Elsie Tu and a reply by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council today (Wednesday):

Question:

About two decades ago I wrote to the then Director of Public Works enclosing a sample of the sub-standard building material used in the building of public housing estates in Tsuen Wan Kwai Chung area. The sample was supplied by a contractor who was concerned that corrupt contractors were using cheap materials and salt water in building public housing estates. The allegation was denied, but some years later tenants had to be removed from some estates because of the poor quality of building materials. Unofficial report said that over 100 blocks in various areas were in a similar condition and should be rebuilt. In view of this, will the Government inform this Council: \

(a) how many blocks were identified as being sub-standard due to poor building materials and use of salt water in concrete-making;

(b) of the blocks referred to in (a) above, how many have been demolished as dangerous buildings; and in which areas are these dangerous blocks located; and

(c) what action has been, or is being, taken against the responsible contractors and Government officials?

34

Answer:

Mr President,

In the early 1980’s, the Housing Department carried out an investigation into the structural safety of all public housing blocks built before 1981. Concrete samples were taken from 836 blocks for testing. 411 were found to have average concrete strength although they did not comply with the original design requirement. Salt levels in walls were generally deemed acceptable at the time of construction, but salt levels in floor slabs were particularly high, which might have been partly the result of floor washing with sea water in those days.

Of the 411 blocks mentioned above, 26 were demolished for early redevelopment. They were not dangerous structurally, but re-strengthening work would not have been cost-effective. The blocks were located in Kwai Fong, Kwai Hing, Kwai Shing East, Lam Tin, Pak Tin, Shek Lei 1, Sau Mau Ping 1, Shek Pai Wan, Tsz Man, Tsz Oi and Wong Chuk Hang estates.

The Housing Department investigated into the responsibility of 25 contractors involved in building the 411 sub-standard blocks concerned. It was not possible to take civil action against contracts exceeding the 12-year statutory limit. For contractors whose contracts fell within the 12-year limit, seven were identified as being liable for civil action in relation to their performance in building 25 sub-standard blocks. Successful claims were made against four of these, and a total of about $19 million was recovered. In the other three cases, one contractor was in liquidation, another one was in the process of liquidation, and action against the third one had to be dropped when it was found that the liability time limit of six years for that particular contract had expired.

The Independent Commission Against Corruption took prosecution action in 11 cases where there was prima facie evidence of corruption. Seven of the accused were civil servants at the time of the alleged offences; the remaining four were employed in the construction industry.

End/Wednesday, July 5, 1995

35

Lam Tin Woman Health Centre

*****

Following is a question by Dr the Hon Huang Chen-ya and a reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council: -

(a) of the total number of clients who have utilised the service of the Lam Tin Woman Health Centre since its inception together with a breakdown of these clients by age;

(b) of the effectiveness of the service provided by the Centre; and

(c) what plans are in place to increase and improve the service?

Reply:

Mr President,

In his 1992 Policy Address, the Governor announced new initiatives to provide better health care for the community. These included, inter alia, the phased establishment of three Well Woman Clinics for women aged 45 and above. Lam Tin Woman Health Centre is a pilot project to provide promotive and preventive health care services for women of menopausal age group. It was opened on 4 May 1994. Until the end of May 1995, a total of 2,470 women have utilised the service of this Woman Health Centre. About 76% of these women were aged between 45 and 55, while 24% were from 55 to 65.

The result of the disease screening programme has so far been very encouraging. A total of 22 cases of cancer, namely 19 cases of breast cancer, two cases of cervical cancer and one case of ovarian cancer were detected and referred for early treatment during this period. In addition. 135 cases of hypertension and diabetes mellitus were detected. Health education activities were also well received. Over 800 women with conditions varying from menopausal, personal, family and emotional problems enjoyed the benefit of additional individual counselling and advice.

36

A second centre will be established in Chai Wan in early 1996 and a third centre in New Territories by 1997. The Department of Health is now providing screening services for cervical cancer at all Maternal and Child Health Centres for clients of Family Planning Clinics. For women not requiring family planning services, cervical cytology screening services are available at four Maternal and Child Health Centres. By early 1996 the number of Maternal and Child Health Centres providing this screening service will be increased to six. In the long term, we will examine the practicability of integrating the full range of woman health services into some of the maternal and child health centres and will welcome collaboration with other healthcare providers who may wish to set up similar services.

End/Wednesday, July 5, 1995

Compensation for widow of shootout victim *****

Following is a question by the Hon Jimmy McGregor and a reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) whether it will initiate measures to provide appropriate financial compensation to the widow of the Korean national who was killed in a shootout between a robber and police in October last year following his being taken as a hostage by the robber and following his extremely brave conduct in attempting to persuade the robber to give himself up to the Police and subsequently struggling to disarm the robber, for which bravery and selfless conduct he lost his life; and

(b) whether it will negotiate directly with the widow’s legal representatives to ensure that an early payment can be made without the necessity of action through the Courts?

37

Reply:

Mr President,

I would like, first of all, to express the Hong Kong Government's deepest regret at the tragic death of Mr Kang Sang-bo and to convey our condolences to Mrs Kang.

As regards the first part of the question, innocent victims (or their dependants in the case of death) who are injured or killed during crimes of violence or law enforcement actions may apply for compensation under the Criminal and Law Enforcement Injuries Compensation Scheme administered by the Social Welfare Department. Immediately after the shootout in last October, staff of the Social Welfare Department passed a copy of the pamphlet and the application form for the Scheme to Mrs Kang through the Korean Consulate. Another application form was sent to her through her legal representative in December last year. So far, we have not received any application from Mrs Kang or her representative. If Mrs Kang decides to apply, we will do everything we can to assist her and ensure that her application is handled as quickly as possible.

As regards the second part of the question, the Government is in the process of seeking legal advice on the question of liability in the light of the evidence presented at the death inquest. If civil or criminal proceedings are subsequently initiated, matters relevant to these proceedings will also be taken into account. Before legal advice on the question of liability is obtained, it is premature to decide on the question of compensation, or on whether Government should negotiate directly with Mrs Kang's legal representative on this matter.

End/Wednesday, July 5. 1995

Non-local workers in Hong Kong ♦ * * ♦ *

Following is a question by the Hon Lee Cheuk-yan and a reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

38

(a) of the breakdown of the numbers of non-local workers currently working in the territory by modes of admission (such as those admitted under the General Importation of Labour Scheme, and the labour importation scheme for the new airport projects, those admitted as PRC professionals, overseas professionals, British immigrants, domestic helpers and people admitted for training and business purposes) and countries of origin;

(b) of the breakdown of non-local workers currently working in the territory

by trades and posts;

(c) of the criteria adopted by the Government in approving the application for entry for training purposes; and

(d) whether the Government will conduct a comprehensive review on the policies governing the control of the entry and employment of various categories of people mentioned above, so as to enhance the employment protection for local workers?

Reply:

Mr President,

(a) The latest statistical breakdown of non-local persons working/staying in Hong Kong by admission categories and places of origin is at Annex A.

(b) The latest statistical breakdown of non-local persons working/staying in Hong Kong by industry and by job titles is at Annex B.

(c) Under the existing policy on entry of persons for training purpose, foreign trainees are admitted to stay for a limited period to acquire, through training, skills and knowledge not readily available in their home country. After the training, they have to return to their home country to continue employment in their professions or trades. All such applications are subject to close scrutiny and will only be approved if they can meet the following criteria:

first, the sponsoring company is a reputable one, is able and competent to provide such training;

39

second, there is a contract between the sponsoring company and the trainee for a period not exceeding 12 months;

third, there are guarantees of maintenance and repatriation;

fourth, there is an undertaking from the sponsoring company that the trainee will in fact be receiving training in the sponsoring company’s premises until the end of the agreed period, after which he will return to his country of residence; and

fifth, the applicant has no adverse immigration records.

(d) The general policy on entry for employment permits the entry of foreign nationals who possess skills, knowledge or experience of value to but not readily available in Hong Kong. In addition, there are other schemes which allow the entry of foreign workers to meet special needs in Hoqg Kong, such as importation of labour schemes. The contributions of these foreign personnel are conducive to the growth of our economy and have brought about an increase in employment opportunities for local workers. As Hong Kong is an international free-market economy, there is a continued economic need to maintain the present policy, which is well- established and well-tested. We will continue to take account of the changing needs of Hong Kong when we exercise this policy. At present, we do not consider it necessary or practicable to conduct a single review covering the different categories of foreign workers, as each scheme serves a different purpose. We will, however, continue to conduct separate reviews frequently when the need arises. For instance, we are now conducting a comprehensive review on the General Importation of Labour Scheme and will have it completed by October this year. We will also review the Pilot Scheme for the entry of PRC professionals by the end of this year.

40

Annex A

Breakdown of non-local persons working / staying in Hong Kong by admission categories and by places of origin

A. General Labour Importation Scheme (as at 23 June 1995)

f

t

Places of Origin Number

PRC 17,420

Nepal 933

Philippines 610

Others 99

Total 19,062

B. Special Importation of Labour Scheme for the New Airport and related projects (as at 23 June 1995)

Places-oLDrigin Number

PRC 1,898

Thailand 970

Philippines 391

Others 250

Total 3,509

C. Pilot Scheme for entry of LOOP PRC professionals (as at 30 June 1995)

Total number of visas issued : 203, all from PRC

41

D. Persons with special skills admitted under normal immigration policy on entry for employment

(i.e. those with special skills, knowledge or experience of value to and not readily available in Hong Kong)

The number of visas issued

Year Number

1993 14,871

1994 16,231

1995 (January - May) 7,675

Year Places of Origin Number

1993 Japan 2,456

USA 2,280

Australia 1,069

Taiwan 1,056

Philippines 1,022

Others 6.988

Total 14,871

1994 USA 3,017

Japan 2,931

Philippines 1,205

Taiwan 1,068

Australia 1,058

Others 6.952

Total 16,231

No breakdown statistics for 1995 are readily available.

42

E. British Citizens (as at 31.May.1995)

Total : 26,643 (including those working and staying as dependants) all from the United Kingdom.

F. Foreign Domestic Helpers (as at 31 May 1995)

Places of Origin Number

Philippines Indonesia Thailand India Others 126,425 13,049 7,073 1,168 _U21

Total 149,106

G. Entry of Persons for training purpose

The number of visas issued :

Year Number

1993 1994 1995 (January - May) 5,413 5,726 1,961

Statistical breakdown by places of origin is not available.

43

Annex B

Breakdown of non-local persons working / staying in Hong Kong by industry and job types

A. General Labour Importation Scheme (as at 23 June 1995)

Breakdown by Industry

Industry Number

Automobile Repairing 78

Banking & Finance 618

Catering 3,640

Clothing 1,486

Communication 303

Construction Work Site 638

Electrical 168

Electronics 493

Furniture 4

Hotel 475

Import/Export Trades 914

Insurance 11

Jewellery 16

Machine shop 1,099

Plastics 62

Printing 250

Retail 1,597

Sanitary, Laundry and Cleaning 22

Services

Shipbuilding and Repairing 48

Social and Community Services 571

Textile 203

Tourism 52

Transport & Physical Distribution 483

Wholesale 214

Wholesale, Retail & Import/Export 2,448

Trades

Others 40

Others (Manufacturing) 286

Others (Non-manufacturing) 2.843

Total

19,062

44

Breakdown by Post

Best Number

Sales Clerk/Sales Assistant 2,613

Waiter/Waitress 2,377

Cook/Junior Cook 1,170

Stock, Purchasing and General Clerk 893

Security Guard 846

General Sewing Machine Operator 844

Care Home Attendant 709

Technician 565

Computer Paging/Telephone Operator 460

Teller 432

Others 8.153

Total 19,062

B. Special Importation of Labour Scheme for New Airport and related projects Cas at 23 June 1995)

Breakdown by Industry

All from construction industry

Breakdown by post

Post Number

Labourer 445

Plant Mechanic/Operator 319

Marine Operator/Coxswain 231

Carpenter 230

Precast operator 202

Precast erector 199

Concretor 183

Rigger 168

Leveller/Linesman 106

Metal Worker 73

Truck Driver 65

Others L2&8

Total 3,509

45

c. Pi|ot Scheme for the entry of 1.000 PRC professionals (as at 30 June 1995,1

*'7/ * ’ ■

Breakdown by industry

laduslry

Trading 50

Construction

Electronics 28

Manufacturing 21

Others

Total 203

Breakdown by profession

Profession Number

Administrator • SQ

Engineer

Marketing Executive I8

Others

Total 203

46

D. Persons with special skills admitted under the normal policy on entry for employment (i.e. those with special skills, knowledge or experience of value to and not readily available in Hong Kong)

Breakdown by profession

Profession 1993 1924 1225 (Jan - May)

Administrators, managers & 6,863 7,017 2,912

professionals

Technical professionals 2,786 2,485 1,358

Others (e.g. representatives of _U22 6.729 1402 *

overseas companies)

Total 14,871 16,231 7,675

E. British Citizens ♦

British citizens do not require a visa to enter for employment in Hong Kong. No statistical breakdown by job types is available.

F. Foreign Domestic Helpers

All are admitted for employment as domestic helpers in Hong Kong

G. Entry of Persons for training purposes

Statistical breakdown by job types is not available. Most admitted for training belong to the managerial or professional grade in the legal and accountancy fields, tourist industry (mainly airline employees), surveyors, engineers, banking industry, computers, hotel and catering industries.

End/Wednesday, July 5, 1995

47

Obligations under declaration for Asian women ♦ ♦ ♦ ♦ *

Following is a question by the Hon Christine Loh and a written reply by the Secretary for Home Affairs, Mr Michael Suen, in the Legislative Council today (Wednesday):

Question:

Will the Administration inform this Council what specific steps it has taken and will take in 1995-96 to fulfil its obligations under the Jakarta Declaration for the Advancement of Women in Asia and the Pacific and the accompanying Plan of Action, to which Hong Kong became a signatory in June 1994?

Answer:

Mr President,

At the Second Asian and Pacific Ministerial Conference on Women in Development in June 1994, participants adopted the Plan of Action for the Advancement of Women in Asia and the Pacific as a means to accelerate the attainment of the objectives of the Nairobi Forward-looking Strategies in the Asian and Pacific region, and to contribute to preparations for the Fourth World Conference on Women. The participants, taking into account the social, economic and political conditions of each country, committed themselves to taking all necessary measures to ensure effective implementation of the Plan of Action. As an associated Member of ESCAP, Hong Kong participated at the Ministerial Conference. The Plan of Action outlines nine critical areas of concern and sets out the general directions in respect of the actions to be taken.

In the Hong Kong context, the contents of the Declaration and the Plan of Action was disseminated to all the relevant policy branches involved in promoting the well-being of women in Hong Kong. In developing their policies and programmes, the relevant policy branches have, taking into account the social, economic and political conditions of Hong Kong, adopted measures to implement the Plan of Action. Examples of the measures taken in 1995 to implement some of the provisions in the Plan of Action are annexed for Members’ information.

48

Annes

Jakarta Declaration for the Advancement of Women in Asia and the Pacific:

Examples of actions taken to implement the Provisions in the Plan of Action

Vulnerable groups and feminisation of poverty

' . . . 1•

Hong Kong’s family policy is to preserve and strengthen the family as a basic unit. A comprehensive network of family welfare services is provided to all types of family, based on their respective needs. Such family types include female-headed and female-maintained households. A leaflet on welfare services for single- parent families was published and widely distributed in early 1995. With effect from April 1995, single parent families, including female headed single parent families, receive a special allowance.

In respect of the elderly, financial resources have been earmarked for implementing the recommendations of the Working Group on Care for the Elderly. In April 1995, the Residential Care Homes (Elderly Persons) Ordinance came into force. As a result of the provisions of the Ordinance, residents in these care homes (including female residents) now receive services of acceptable standards. , x

In relation to young women and girls, the Protection of Children and Juveniles Ordinance provides statutory care and protection to young women and girls under the age of 18 against all types of abuse and exploitation. To further protect vulnerable witnesses, including girls under the age of 17 who are victims of sexual abuse cases, legislative amendments are in process to provide for testifying through live television links or video tape. r

In respect of women with disabilities, comprehensive rehabilitation services are provided to people with a disability, including women. The White Paper on Rehabilitation published in 1995 sets out fully policy decisions for the further development of rehabilitation services for people with a disability, including women, for the next decade and beyond. We have also introduced the Disability Discrimination Bill into the Legislative Council which seeks to outlaw discrimination and harassment on the ground of disability against persons of both sexes.

49

Promoting Equality in women’s access to and participation in economic-activities

As a general policy to promote equal opportunities in employment, the Labour Department, through its labour relations promotional activities has disseminated the message of equal opportunities to employers. Employers are also advised to remove the gender requirement on job vacancies in recruiting employees through its Local Employment Services.

In respect of training, the Employees Retraining Board has organised through various training bodies, a number of tailor made retraining courses specifically catering for the needs of the elderly women as well as female household managers to enhance women's access to the labour market.

Protecting and Promoting women’s human rights

The Sex Discrimination Bill which renders unlawful sex discrimination and sexual harassment in a number of areas of activity was introduced into the Legislative Council in October 1994, the Bill was passed by the Legislative Council on 28 June 1995.

Promoting women's equal access to health

In Hong Kong, a comprehensive range of health services are available to women. Women's health needs in all stages of the life-cycle are being catered for. Services in respect of mental health, reproductive health, nutrition and cancers, and menopausal and post-menopausal conditions are readily available to women in Hong Kong.

The Family Health Service of the Department of Health provides maternal health services to women of reproductive age through its network of 46 maternal and child health centres. The Government subvented Family Planning Association of Hong Kong also runs birth control clinics, providing contraceptives, gynaecological check up, pre-marital check up, counselling and advice on sub-fertility.

The first Women Health Centre run by the Department of Health commenced operation in May 1994 to provide services for women aged 45 and above. This provides a comprehensive range of health screening and education services including screening for breast cancer and cervical cancer. Two more women health centres will be established by 1997.

- 50 -

Supporting access to and equality of women in education and literacy

In Hong Kong, there is full access to education and equal opportunities for both sexes in terms of the provision of education services. Topics on equality of sexes and sexual stereotyping are included in the subjects of Religious Education, Social Studies as well as Liberal Studies. In the Guidelines on Sex Education in Secondary Schools, relevant topics are also recommended for inclusion in schools’ sex education programmes.

In preparing curriculum materials for use in schools, the Education Department has paid special attention to providing teachers with the necessary reference in teaching the issue of equality of sexes. Examples of these curriculum materials include a teaching kit on ’Sexual Attitudes and Values' for secondary level and a booklet on ’The Influence of Mass Media on Our Lives' for primary schools.

End/Wednesday, July 5, 1995

Water seepage in public housing estates . . . *****

■ ■■ .>•' • •’**

Following is a question by Dr the Hon Tang Siu-tong and a written reply by the

J,,.;. .• Secretary for Housing, Mr Dominic Wong, in the Legislative Council today ^Wednesday):

' 7.’4" ■•••'• Question:

;According to the information released by the Housing Branch, 2,414 \complaints about water seepage have been received from among 44,908 flats in a total . of 19 public housing estates completed less than three years ago. Of these complaints, J v some 745 have been received from Tin Yiu Estate at Tin Shui Wai. In connection with this, will the Government inform this Council:

(a) whether there is anything special about the situation mentioned above as compared with the situation regarding complaints of the same nature three years ago;

(b) whether the situation mentioned above is due to the quality of buildings or to the design of buildings;

51

(c) what plan the Housing Authority has put in place to improve the quality of public housing estates; and

(d) what measures the Government will take to assist the residents in solving the existing seepage problems?

Answer :

Mr President,

There is no evidence to suggest that there has been a deterioration in the general quality of public housing blocks constructed in recent years, nor are there special factors affecting the quality of flats in Tin Yiu Estate. Each item of work is checked by Housing Department staff at every stage of construction of a housing project, and defects are corrected before the flats are accepted for occupation.

Analysis of defects reported by tenants shows that the normal causes of seepage are either poor workmanship or tenants' unauthorised modifications which damage waterproof materials and surface drainage in the toilet, kitchen and balcony areas, rather than the quality or design of buildings.

Since 1993, only contractors who are certified to have attained ISO 9000 (a specified international standard in terms of quality control procedures) are allowed to bid for the Housing Authority's building contracts. Contractors' performance is monitored by the Housing Department, and scores are assigned on a monthly basis. A contractor's future opportunity to tender will be affected by his scores.

In addition, the design of and materials used in new blocks are continually being refined. Recent examples are the relocation of floor drains to the external wall and the use of windows with weather-strips. Suppliers of building components, with ISO certification, are used as far as possible.

These measures, taken together, have proved to be generally effective. Newly occupied flats in early 1993 had a seepage defect report rate of 1 per 110 flats during the first six months of occupation. For flats occupied in 1994, the rate dropped significantly to 1 per 364 flats.

Tenants are advised to report water seepage problems to estate staff. When a complaint is received, the problem will be inspected and repair will be carried out normally within 14 days. Estate staff also inspect the general conditions of every flat in public housing estates at least once every 18 months.

End/Wednesday, July 5, 1995

University engineering graduates

*****

Following is a question by Dr the Hon Samuel Wong and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) how many engineering students will be graduated from the universities funded by the University Grants Committee in 1995;

(b) how many of such graduates will be able to join the Hong Kong Government as Engineering Graduates, and how many will be able to join the graduate training scheme jointly organised by the Vocational Training Council and the Hong Kong Institution of Engineers; and

(c) whether there are plans to provide more training opportunities in the two categories mentioned in (b) above?

Reply:

Mr President,

(a) On the basis of the number of final-year engineering students, the expected numbers of engineering graduates from the University Grants Committee(UGC)-funded institutions in 1995 at postgraduate, undergraduate and sub-degree levels are 432, 1,858 and 1,928 respectively.

(b) There are a total of 80 vacancies for engineering graduates in the Housing Department and in the Works Group of Departments of the Government. These vacancies are open to both local and overseas engineering graduates, provided that they are permanent residents of Hong Kong. Since these Departments are now in the process of selecting suitable candidates, the number of engineering students graduated from the UGC-funded institutions who will join the Government in 1995 is not yet available. However, according to past experience, over 90% of these vacancies will be filled by the local engineering graduates.

53

As for the Engineering Graduate Training Scheme (EGTS), 270 training places for engineering graduates will continue to be offered in 1995.

(c) The total number of training places in the Government for engineering graduates has increased from 64 in 1994 to 80 in 1995. We are planning to further increase this to 94 in 1996. As regards the EGTS, there are at present no plans for any increase in the training places.

End/Wednesday, July 5, 1995

Community development ♦ * * ♦ ♦

Following is a question by the Hon Fred Li Wah-ming and a written reply by the Secretary for Home Affairs, Mr Michael Suen, in the Legislative Council today (Wednesday):

Question:

Regarding the service development of "Neighbourhood Level Community Development Projects", will the Government inform this Council:

(a) of the reasons why it contemplates recommending to the Executive Council that it will no longer develop the Project and that it will gradually reduce the number of service teams under the Project over the next ten years; how many service teams will be affected immediately and in which districts are they based; and

(b) what specific service development plans does the Government have under its policy on future community development, and what is the long term objective of such policy?

Reply:

Mr President,

My reply is as follows:

54

(a) NLCDPs were introduced in the seventies as a remedial service for areas such as squatter areas and temporary housing areas (THAs) where the provision of welfare services was inadequate or non-existent. In view of the marked improvement in the provision of welfare services, introduction of new services, full implementation of the District Administration Scheme and decrease in the number of THAs and squatter areas over the past twenty years, the need for NLCDP service is diminishing. Coupled with the fact that trained social workers who are limited in number are badly needed to effect the expansion of other welfare services, we intend to propose to the Executive Council to rationalise the NLCDP service by withdrawing NLCDP teams whose services for their clients will no longer be required upon the clearance or redevelopment of the areas which they serve.

(b) The Government attaches great importance to community development. The introduction of the District Administration Scheme is to strengthen local administration and community development. The District Boards together with the Mutual Aid Committees, Owners’ Corporations, Area Committees and various district organisations provide various channels for residents to voice their concerns or to come together to foster a sense of neighbourhoodliness. The District Officers will continue to provide assistance to district organisations and encourage them to undertake community involvement projects with the assistance of District Board funds. The Social Welfare Department’s Group Work Units and NGO-run community centres are providing group and community services to all age groups in the neighbourhood community. The Social Welfare Department will also continue to encourage its service units and NGOs to adopt an out-reaching approach in the delivery of their service in order to address the welfare needs of the people they serve.

End/Wednesday, July 5, 1995

55

Measures to tackle flooding problem

*****

Following is a question by the Hon Lee Wing-tat and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

* * • • • •1

Question:

As the rainy season has begun, will the Government inform this Council of the details of the projects which have been carried out, and the preventive measures which have been adopted, by the relevant departments to prevent the recurrence of serious flooding in various flooding black spots throughout the territory?

Reply:

Mr President,

The Government is tackling the flooding problem in the territory in a systematic manner. In brief, the problem is being addressed through a three-tier approach comprising :-

(a) long term structural measures to carry out river training works and village flood protection schemes;

(b) short term improvement and management measures including local drainage improvement works, maintenance and surveillance to prevent drain blockage and to ensure the integrity of the drainage system; and

(c) institutional and legislative measures including normalisation of the Drainage Impact Assessment requirement for developments within a flood plain and the implementation of the Land Drainage Ordinance.

56

Details of these measures are included in an information paper on Flood Control in the New Territories, prepared for the LegCo Panel on Planning, Lands and Works for their meeting on 4 April 1995 (Annex A). Since then we have achieved two major milestones in the implementation of the overall flood control strategy: the commencement of the Shenzhen River Regulation Project Stage I in 19 May 1995, and the gazetting of the first draft Drainage Authority Area Plan covering the Yuen Long, Kam Tin and Ngau Tam Mei drainage basin under the Land Drainage Ordinance in 19 May 1995.

Based on historical flooding records, the Government has comprised a list of flooding blackspots (Annex B) covering the whole territory. Both long term and short term action plans have been drawn up for the 82 flooding blackspots and many of these action plans are in progress or have been completed.

End/Wednesday, July 5, 1995

Sewerage facilities for beaches ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Recreation and Culture, Mr James So, in the Legislative Council today (Wednesday):

Question:

In response to my question at the LegCo Sitting on 19 October 1994 concerning the development of additional beaches, the Government indicated that a comprehensive plan had been drawn up for the construction of sewerage facilities near beaches and an inter-departmental committee would soon be set up to look into water sports facilities, including the need for developing new beaches. In this connection, will the Government inform this Council:

(a) of the number of existing beaches whose surrounding areas have been provided with sewerage facilities, as well as their locations and the situation regarding water quality improvement in each of these beaches;

57

(b) of the names of the beaches anticipated to be provided with sewerage facilities within the next three years, together with the target date for completion of work and the achievable improvement in water quality in each of these beaches; and

(c) when was the inter-departmental committee set up; what progress has been made in its work and, in particular, whether any study has been conducted on the development and opening up of additional beaches; if so, what the findings are?

Reply:

Mr President,

At present, nine of the 43 gazetted beaches managed by , the Urban Council and the Regional Council are provided with sewerage in their vicinity. Three of them are on Hong Kong Island, i.e. Chung Hom Kok, Repulse Bay and Deep Water Bay. The remaining six are in the Tuen Mun District. They are New Cafeteria, Golden Beach, Old Cafeteria, Kadoorie, Castle Peak and Butterfly.

The water quality gradings of these beaches, before and after the commissioning of the sewerage in their vicinity, are given in the table attached. Notably, the water quality at the Old Cafeteria Beach has improved from Grade 4 in 1992 to Grade 3 in 1994 and that at the Castle Peak Beach also from Grade 4 in 1992 to Grade 3 in 1994.

The following eight gazetted beaches will be provided with sewerage in their vicinity in the next three years:-

. , (A) Hong Kong Island

Beach Target Date for Completion

{

(i) Rocky Bay ) Works are scheduled to be completed in late 1996. (ii)ShekO )

(iii)Turtle Cove )

(iv) Hairpin ) (v) Stanley Main) (vi) St Stephen’s )

Sewerage construction works have been completed. Connections to premises by owners are in progress.

58

(vii)Middle Bay ) Sewerage construction works have been completed. Connections to premises are to be carried out by owners.

(B) Sai Kung District

Beach Target Date for Completion

(i) Silverstrand Sewerage construction works are scheduled for completion in 1998.

After the completion of the construction of the sewerage and the connections to premises, we expect that the water quality at these eight beaches will improve substantially. Members may, however, also wish to know that sewerage works carried out in other areas, albeit not in the vicinity of beaches, may also contribute to improving the water quality of beaches generally.

The inter-departmental committee formed to look into water sports facilities, commenced work in late February 1995. Up to the present moment, the committee has concentrated on reviewing the facilities and usage of existing waters sports centres.

There are at present seven public waters sports centres. Three are managed by the Regional Council and four by voluntary agencies. Our review has shown that the average usage of the centres managed by the voluntary agencies is generally low. While those centres under the Regional Council are able to achieve an annual utilisation rate of 72% and a rate of 94% during the summer months, the centres managed by the voluntary agencies are only able to reach an average annual utilisation rate of 44% and a rate of 50% during the summer months.

We are exploring ways and means to improve the usage of these water sports centres managed by the voluntary agencies. We shall also keep the situation under observation in close co-operation with the voluntary agencies.

The committee will move on to a review of the existing beach facilities later in the year. This review will also cover the need for and the feasibility of developing new beaches as well as the options in this regard.

End/Wednesday, July 5, 1995

WATER QUALITY GRADINGS AT BEACHES WITH SEWERAGE IN THE VICINITY

Beach Before Commissionin ? of Sewerage After Commissioning of Sewerage

Bathing season geometric mean E. coli count per 100 mL of seawater (1992) Health risk (cases of minor illness per 1,000 swimmers) Bathing season geometric mean E coli count per 100 mL of seawater (1994) Health risk (cases of minor illness per 1,000 swimmers)

Hong Kong Island South District

Chung Hom Kok _ )

Repulse Bay ) ND. Sewerage provided many years ago. 26 0.4

Deep Water Bay ) 18 undetectable

40 2

Tuen Mun District

Butterfly ) 317 12

New Cafeteria 175* 9 229* 11

Golden Beach # ND ND 206 10

Oki Cafeteria 731 16 301 12

Kadoorie 267* 11 210* 10

Castle Peak 1187 18 243 1 11

Note: ND No data

# New beach gazetted in 1994

Changes in E. coli level are statistically insignificant

GRADING SYSTEM

Grade Bathing season geometric mean E coli count per 100 mL of seawater Health ride (cases of minor illness per 1,000 swimmers)

1 up to 24 undetectable

2 25 to 180 10 or less

3 181 to 610 11 to 15

4 more than 610 more than 15

60

Pension payable to civil servants ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Cheung Man-kwong and a written reply by the Secretary for the Civil Service, Mr Michael Sze, in the Legislative Council today (Wednesday):

Question: <

As the pension payable to civil servants in the territory is calculated by multiplying the highest annual pensionable emoluments by the length of pensionable service (in months) and a pension factor, will the Government inform this Council:

(a) of the number of civil servants on point 34 of the Master Pay Scale or equivalent who were promoted within eighteen months prior to their retirement (including early retirement) in each of the past three years, together with a breakdown by grades; and

(b) whether the Government will review such a promotion arrangement in view of the fact that the staff mentioned in (a) are able to enjoy an increase in pension consequent upon their promotion within eighteen months before retirement; if not, why not?

Answer:

Mr President,

(a) In the three-year period from January 1992 to December 1994, a total of 3,736 officers on point 34 and above of the Master Pay Scale or equivalent gained promotion to a higher rank within their respective grades. Of these, 58 retired (including early retirement) from the service within a period of 18 months after promotion. This represents about 1.6% of the total number of promotees. A breakdown by grade and department is at the attached Annex.

(b) We have a provision in the Civil Service Regulations that officers who have less than twelve month’s service to give before going on preretirement leave are not normally considered for promotion. This ensures that newly promoted officers would serve in the higher rank for at least twelve months.

61

We are fully aware of the need to ensure that promotees would give an adequate period of service before their retirement. On the other hand it is equally important not to deprive officers, who are approaching retirement age but who are nonetheless fully qualified for the job in a higher rank, of the advancement opportunities they well deserve. The provision in the Civil Service Regulations represents an appropriate balance between the two. It has been in practice for decades and has been working well. We do not see any need for revising this provision.

End/Wednesday, July 5, 1995

Home Ownership Scheme *****

Following is a question by the Hon Christine Loh Kung-wai and a written reply by the Secretary for Housing, Mr Mr Dominic S W Wong, in the Legislative Council today (Wednesday):

Question:

In his policy address in October last year, the Governor made a policy commitment to increase home ownership in the territory to "just under 60% by 1997". However, on 1 June 1995, the Chairman of the Housing Authority stated that "by 1997, the home ownership rate across the territory will only reach 50%, with the public sector accounting for 13%. This apparently falls short of the Government's earlier target". In this connection, will the Administration inform this Council:

(a) whether the Governor's 1994 policy commitment will be met?

(b) what specific steps the Government will take in the next 3 years to achieve the Governor's commitments; and

(c) how does the Government define the term "home ownership" in the context of the Governor's commitment?

62

Answer:

Mr President,

In the context of the Governor's Policy Address in 1992, home ownership refers to occupation of housing units by owners as their homes. This rate is not easy to forecast as it is sensitive to various factors including the supply of flats, market sentiment and people's affordability to buy.

Latest indications suggest that the home ownership rate by 1997 may be a few percentage points below what was forecast in 1992. This may be attributed largely to high property prices in the past two years, which reduces potential buyers' affordability and incentive to purchase homes. A more accurate assessment of the practicability of achieving the target can be made when the Housing Branch has completed its review of the Government's Long Term Housing Strategy in mid-1996.

In the next three years, the Government will adopt a comprehensive approach to help families to buy their own flats. For lower income families, the Home Ownership Scheme, the Private Sector Participation Scheme, the Flats for Sale Scheme and the recently enhanced Home Purchase Loan Scheme will continue to be available. On average, about 27,000 such families will be assisted to purchase homes each year.

For sandwich class families, a loan scheme and a flats for sale scheme are available. On average, about 4,100 such families will benefit each year.

There are others who fall outside the purview of all these schemes or who wish to buy flats in the private sector. For these families, the Government's task is to ensure that property prices are not inflated by speculative activities. The anti-speculation measures introduced since June 1994 have been achieving the desired effect. We shall continue to monitor the property market closely and guard against any rekindling of speculative activity. In parallel, we will provide an adequate supply of land for housing construction and will accelerate housing production whenever possible through the Housing Project Action Team chaired by the Secretary for Housing.

While the Government provides help in various ways listed above, in the end the decision whether or not to buy a flat rests with the individual who must take into account his own circumstances.

End/Wednesday, July 5, 1995

' > - 63 -

Reimbursement of charges for dental services * ♦ ♦ ♦ ♦

Following is a question by Dr the Hon Leong Che-hung and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

With regard to the reimbursement of charges for dental services for public assistance recipients, will the Administration inform this Council:

(a) of the average amount of reimbursement, as well as the highest and the lowest reimbursement amount, in each of the past three years;

(b) of the average waiting time for receiving the service and receiving the reimbursement respectively;

(c) whether there are any statistics to compare the charges and cost-effectiveness of the non-profit-making dental service providers which the public assistance recipients are asked to visit, and those of the private sector; and

(d) whether the Administration will consider taking over the provision of such services for public assistance recipients; if not, why not?

Reply :

(a) The average amount of reimbursement of charges for dental services provided to Comprehensive Social Security Assistance (CSSA) clients in each of the past three years is as follows -

Financial Year Average Amount of Reimbursement Per Case

1992/93 $2,400

1993/94 $2,500

1994/95 $3,025

*«< i -i- -j

if

- 64 -

Given the very wide range of charges for different types of dental services which include check-up, tooth extraction and filling, full and partial dentures, scaling and root canal treatment, etc., the actual amount reimbursed can vary enormously between individual cases. Prior to April 1994, reimbursement records were kept manually amounting to over 80,000 individual case files in 1992/93 and over 95,000 in 1993/94. It would be very difficult and time-consuming to analyse all these manually kept records to identify the minimum and the maximum amount of reimbursement made in those years.

Since April 1994, records of reimbursement have been kept in the computerised Social Security Payment System. According to computerised records, the minimum amount reimbursed in 1994/95 was $20 for a simple case involving a check-up only, whereas the maximum amount was $13,380 for an exceptional case involving major crown and bridge work for 12 teeth (treatment which took place over a period of about 2 months). In about 95% of all cases, the reimbursement was below $5000 and only about 2% of all CSSA recipients made any claijn at all for dental treatment in 1994/95.

The average waiting time for receiving dental treatment is eight working days from the date of request for a dental appointment. The waiting time for receiving reimbursement of charges for dental services is nine working days from the date of submission of the cost estimate to the Social Welfare Department (SWD). In emergencies, dental services and reimbursement of charges can be provided within one or two working days.

According to a fee survey of private dentists operating in housing estates conducted by the Estate Dental Group of the Hong Kong Dental Association in January 1995, private dentists charge higher fees than non-profit-making dental clinics. There is, however, no data available to enable a comparison of the relative cost-effectiveness of the two sectors.

At present, 21 non-profit-making registered dental clinics are designated to provide dental services for CSSA clients who are also free to use any registered private dentist, provided that the cost charged by the private dentist is not more than that charged by the designated clinics. The aim of our public dental care policy is to provide promotive and preventive services, while leaving the provision of curative dental services largely to the non-governmental sector. As the current provision of dental services for CSSA clients by the non-governmental sector is working reasonably well, we see no need to consider taking it over.

End/Wednesday, July 5. 1995

65

Retirement benefits of academic staff ♦ * ♦ ♦ ♦

Following is a question by the Hon Cheung Man-kwong and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

The retirement benefits payable to the teaching staff of the institutions funded by the University Grants Committee are calculated by multiplying the final monthly basic salary by the length of qualifying service and a multiplying factor. In this respect, will the Government inform this Council:-

(a) of the number of teaching staff who were promoted within eighteen months prior to their retirement in the past three years; of this number, how many were on salary points equivalent to point 34 and above of the Civil Service Master Pay Scale, together with their distribution by institutions; and

(b) whether the Government will review such a promotion arrangement in view of the fact that the staff mentioned in (a) are able to enjoy an increase in retirement benefits upon their promotion within eighteen months prior to their retirement; if not, why not?

Reply:

Mr President,

Over the past three years in the UGC-funded institutions only three academic staff on the equivalent of MPS point 34 or above were promoted within eighteen months prior to their retirement. One of these staff was at CUHK and the other two were at HKU.

The Government will not review or otherwise intervene in these matters since the appointment and promotion of academic staff are matters entirely within the jurisdiction of the UGC-funded institutions.

End/Wednesday, July 5, 1995

66

Dental service for civil servants ♦ ♦ ♦ ♦ ♦

Following is a question by Dr the Hon Leong Che-hung, and a written reply by the Secretary for the Civil Service, Mr Michael Sze, in the Legislative Council today (Wednesday):

Question:

Regarding the non-emergency dental service provided to civil servants by the Government, will the Government inform this Council:

(a) of the current average waiting time for a civil servant to receive nonemergency dental service;

(b) of the total number of such dental consultations provided to civil servants in each of the last three years; and

(c) how the non-emergency dental service has expanded in terms of the number of clinics, manpower and expenses in the last three years?

Answer:

Mr President,

The answers to the three questions are :

(a) As at 31 March 1995, the average waiting time for a civil servant to receive Government non-emergency dental treatment was 8.1 months.

(b) The total number of dental consultations provided to civil servants in 1992/93, 1993/94, and 1994/95 were 470,622, 471,629, and 492,634 respectively.

(c) Three new dental clinics were opened and five existing dental clinics expanded their operations in the last three years. 28 additional posts were created. Expenditure on dental services for civil servants was increased by $21.2 million in 1992/93, by $25.3 million in 1993/94, and by an estimated $27.1 million in 1994/95.

End/Wednesday, July 5, 1995

67

Publicity campaign to prevent chemical leakage incidents

*****

Following is a question by the Hon Tam Yiu-chung and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) of the number of chemical gas leakage incidents which occurred during the handling of chemicals, together with the number of casualties, involved in each of the past 12 months; and

(b) what short-term measures or publicity campaigns the Government has put in place to educate the persons concerned on how to prevent such accidents when handling chemicals?

Reply:

Mr President,

(a) The number of chemical gas leakage incidents and the number of casualties involved and taken to hospital in each of the past 12 months is-

Year Month No, of incidents No, of casualties

1994 June 3 0

July 6 20

August 3 11

September 3 4

October 1 0

November 2 1

December 2 0

1995 January 2 1

February 0 0

March 2 31

April 3 3

May 10 34

Total 37 105

68

(b) The Labour Department will run a safety campaign on Summer Job Safety in July and August 1995. This will target machinery and chemical safety. It will run a second safety campaign in October and November 1995 which will target fire and chemical safety. During these campaigns, the Department's factory inspectors will visit factories and construction sites to give advice and distribute publications on chemical safety. They will, as necessary, initiate legal action against dangerous practices. The Department has also produced an Announcement of Public Interest which will be shown on television.

The Labour Department runs several safety courses in its Industrial Safety Training Centre which cover general chemical safety. These courses include topics such as safety legislation in accident prevention, safety standards on construction sites, fire precautions in work places and health-related safety legislation. Over the past 12 months, the Centre has run 13 classes on the Dangerous Goods Regulations and 14 more classes will be run in the second half of 1995. In addition, the Department organises seminars in co-operation with workers' associations. In the past 12 months, five seminars on chemical safety have been conducted. These will continue to be organised in the future.

The Occupational Health and Safety Council also conducts a range of courses relating to chemical safety. These include vocational topics on basic occupational health knowledge and safety in the electronics industry, as well as certificate courses in the management of dangerous goods and in laboratory safety.

Under the Hong Kong Education Regulations, school supervisors and principals must ensure that chemicals are properly stored in schools and used under the strict guidance and supervision of qualified teachers. The Education Department issues a school circular on laboratory safety to schools every September. Science subject inspectors conduct regular inspections to monitor schools' compliance. There are established guidelines and codes of practices on laboratory and health safety in UGC-funded institutions. The institutions must comply with statutory requirements concerning the storage, use and disposal of dangerous chemicals. The institutions employ safety officers to implement, monitor and advise on their laboratory safety policies and procedures, and to ensure that statutory requirements are met. The institutions have established a Tertiary Institutions Safety Advisory Group to share experiences in the health and safety fields. This also oversees the development of safety standards in the academic environment, including risk management, safe working practices and environmental protection.

End/Wednesday, July 5, 1995

69

Power to obtain information from IRD

*****

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Following the enactment of the Organised and Serious Crimes Ordinance in October last year, section 6 of the Ordinance has been put into effect since 28 April this year. Will the Government inform this Council of:

(a) the number of cases in which the power under Section 6 of the Organised and Serious Crimes Ordinance has been invoked to obtain information from the Inland Revenue Department about persons suspected of involvement in organised crimes since the commencement of that section; and

(b) the number of cases in which such information has been subsequently used as evidence for initiating prosecution?

Reply:

Mr President,

Since Section 6 of the Organised and Serious Crimes Ordinance came into effect on 28 April 1995, there has as yet been no case where the power to obtain information from the Inland Revenue Department under this section has been used. The answer to both (a) and (b) is therefore "none".

End/Wednesday, July 5,1995

70

Traffic congestion at Au Tau Roundabout

*****

Following is a question by Dr the Hon Tang Siu-tong and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

Since the opening of the New Territories Circular Road in 1993, the traffic flow at Yuen Long - Au Tau Roundabout has increased drastically. This has resulted in traffic congestion occurring during peak hours, with the vehicle queue often stretching to as far as the Southern Bypass and Fairview Roundabout. In view of this, will the Government inform this Council: '

(a) whether the Government has put in place any interim or special measures to ease traffic congestion at the above locations; and

(b) what progress has been made regarding the road project under which a flyover and a slip road are being planned to be built at Au Tau to link up Castle Peak Road and the Circular Road for regulating the flow of traffic in the area; and when these roads are expected to be opened to traffic?

Reply:

Mr President,

(a) In recent years, traffic has increased substantially in the North West New Territories, including Castle Peak Road and the New Territories Circular Road (NTCR). The Au Tau Roundabout provides a link between Castle Peak Road in the west, the NTCR in the north and Kam Tin Road in the east. It is now heavily congested during morning peak hours.

In 1993, improvements were instituted to enhance the capacity of the roundabout by providing two exclusive left-turn lanes from Castle Peak Road into the NTCR and an exclusive straight-ahead lane from Kam Tin Road to Castle Peak Road bypassing the roundabout. In late 1994, at the request of the Yuen Long District Board, a temporary traffic signal was installed in Castle Peak Road for use during peak hours, so as to permit more vehicles to enter the roundabout from the NTCR. However, with the continued growth in both cross-border and local traffic, conditions at the roundabout have again deteriorated, particularly during the morning peak hours.

71

The Transport Department is now considering converting the roundabout into a signalised junction, so as to try to improve traffic flow. The Yuen Long District Board will shortly be consulted again on this proposal.

(b)

As part of the Route 3 (Country Park Section) project, two slip roads will be built to link the NTCR with the Yuen Long Highway via Pok Oi Interchange, for completion in mid 1998. These will relieve the Au Tau Roundabout, since all traffic between the NTCR and the Yuen Long Highway in both directions will be diverted away from it. The Au Tau Roundabout will then mainly serve local traffic between Yuen Long and Kam Tin.

A proposal to build a temporary flyover to relieve the roundabout, has been considered in the past. However, apart from the high estimated construction cost of about S130M, it is clear that such a project could not be completed before the year 2000, by which time substantial relief would have been provided by the new Route 3 (Country Park Section) highway which is scheduled for opening in mid 1998.

End/Wednesday, July 5, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Thursday, July 6,1995

Contents Page. No.

Governor's question-and-answer session............................... 1

Governor's speech........................................................ 4

Transcript of the CS's media session..................................... 9

Views invited on the implementation of UN treaties...................... 10

Govt deals with bottlenecks at economy............................... 11

HK and New Zealand sign investment agreement............................ 12

BEC to publish revised election guidelines.............................. 14

CS visits border........................................................ 17

Results of 93 Survey of Storage, Communication, Financing, Insurance and Business Services................................................ 18

Study on water heater and cooking fuel market completed................. 23

Contract signing for transfer station................................... 23

Hong Kong Gurkha sets "impossible" record............................... 25

1995 Outstanding Home Economics Students Award Scheme................... 25

New Yau Tong Post Office to be opened................................... 26

Grading of beach water quality.......................................... 27

Hong Kong Monetary Authority money market operations

31

1

Governor’s question-and-answer session ♦ * ♦ ♦ ♦

'r •.

Following is the Governor, the Rt Hon Christopher Patten’s question-and-answer session after delivering his speech at the Hong Kong Exporters' Association luncheon today (Thursday):

Question: I’ve asked you this question before in another forum. As a trading exporter, and especially on the trading side as opposed maybe to the manufacturing side, we are an international community of people from many different races and nationalities. We are now getting more concerned, as we get closer to '97, that people like myself who run small businesses owned by myself - my business can stay here forever but I'm not sure I can. The right of abode, sir, is a big problem. I know you've had - and I congratulate you on successes recently in the airport and other agreements - but this is a very important one, and for us in particular, sir.

Governor: I think that this is an issue on which public attention and public debate is inevitably going to focus increasingly over the coming months, and indeed, over the coming couple of years, if we don't resolve it satisfactorily. And I would associate it with some related issues, involving freedom of travel, the ability to travel without a visa, all those issues which touch on free movement, nationality and abode. We are still negotiating, still arguing, still debating with Chinese officials about the issue of right of abode. I think that Chinese officials understand the importance to Hong Kong of the issue and if I may say so, without being thought to be asking you to lobby, I’m sure that it's helpful for businessmen and business groups to put these arguments to Chinese officials as eloquently as you put arguments about the Court of Final Appeal, because Hong Kong's status, Hong Kong's position makes this a crucial issue. We are, as you said, an international community; an international city which is 98% Chinese but has an open revolving door for the rest of the world. And that's one reason why we are so successful, and that is one reason why Hong Kong, in the future, will be so useful to China as China continues its extraordinary economic revolution and economic transformation.

To go on travelling, to go on feeling that in commercial terms and in other terms, the world's your oyster; to go on with a buccaneering, boisterous, adventurous spirit, which is, I guess, what anybody whose life is in exporting needs to be - I wouldn't go far as to say, as a former British Prime Minister did, that exporting is fun. But I know that exporting is a huge challenge and adventure - to go on doing those things with self-confidence and elan, you do need certain certainties. You need certainties about being able to come home again. You do need certainties that the door is going to go on revolving. So I hope that we can sort these matters out with goodwill on both sides in the coming weeks and months. It's an issue which we’ve been discussing only recently and the sooner it can be resolved the better.

2

Question: I have only a humble request, your Excellency. I was trying to get on the pages of The Economist, the letter page, but I found out that you're using it. Would you please leave some space for us?

Governor: I've only used it, I think, once, and I'm sure that they'd welcome in the other 51 volumes over the coming year, a letter from you. But if you can't get into The Economist, I can offer you, or suggest, The Far Eastern Economic Review, Asiaweek, The Asian Wall Street Journal, in any of which I'd very much welcome a letter from you, particularly if it supported my views.

Question: Sir, it seems that you have already given the remark on comparing the Singapore example to that of Hong Kong. I'm asking what steps the Government would take in view that China might be joining the World Trade Organisation in the near future and would be competing with that of the Hong Kong exporters. My question is, would the Hong Kong Government try its best to safeguard the interests of the Hong Kong exporters in view of the (fact that) Chinese exporters will be competing against Hong Kong in the very near future, despite (the fact) that we have so many competitors already around Hong Kong, like Singapore, the example that you have drawn properly? Thank you, sir.

Governor: I must say that I would see China joining the World Trade Organisation not as a threat to our exports but as a further bonus for our exporting, and in due course, I hope, when the WTO is able to extend its ambit much more into service industries even than it does at the present, as a bonus for our services too. Why do I say that? Because in my view, bringing China within the ambit of the rules and regulations, which cover the liberation of trade for most of the rest of the globe, has to be good for an economy like ours which is so closely tied to that of China. I think that joining the WTO is not only right for China and should not only be welcomed by the United States, the European Union and others, not only right for China but good for the rest of us. So I don't accept the notion that for China to come into the club would somehow mean that the existing cake of exports was divided up in a way which was less advantageous for Hong Kong. On the other hand, I do think that for China to join the WTO would be likely to give a boost to world trade from which we could ourselves benefit.

I think that when one looks at the economies in the region, it's useful for us to have competitors against which we can match ourselves and our own performance and I very much see Singapore in that way. But I don't think we should be obsessive about it, and I don't think we should assume that it's, as it were, either Singapore or us. There's quite enough room for both of us in the region, as in due course there'll be quite enough room for economic success in Shanghai too. Asia is growing at such a dramatic pace, provided we can remain competitive we'll be able, I'm sure, to continue to guarantee an improving economy and standards of living for all our people.

3

Question: What is the status of the Government working along with the Chinese on the SAR passport for holders of the SAR passport in the future after 1997, as far as their travelling level of freedoms like the ones like the current BNO or foreign passport holders are enjoying?

Governor: That's a subject like right of abode which we're discussing with Chinese officials at the moment and I very much hope it can be resolved reasonably soon. It raises interesting and difficult issues against a background of the rest of the world becoming more restrictive rather than more free in its attitude to visa-free travel. At the moment, if you are a CI holder and basically will be an SAR passport holder in future, you don't actually have visa-free access to many places. What we would like to be doing sooner rather than later is talking to other countries, with China, about visa-free access for both BNO passport holders after 1997 and SAR passport holders, and roughly - the figures aren't quite as simple as that - but roughly you're talking about 50% of the population of Hong Kong under each heading.

There are present differences which obviously cause debate. At present if you're a British passport holder of any sort, not surprisingly you enter Britain without a visa; if you're a Hong Kong resident but not a British passport holder, you need a visa, and that's reflected in a lot of European countries and others too. So it's part of that nexus of issues which I was talking about earlier, involving visas, involving passports, involving right of abode - hugely complicated but very important to ordinary families, to all families, and an issue, therefore, which, if we could settle it, would I think give a great supercharge of confidence through the community.

Question: Sir, we are representing and we're part of the garment exporters, and we're extremely concerned, primarily I think, about the manufacturing in Hong Kong, and secondly, about the utilisation of quota because we really cannot manufacture sufficient garments here anymore, yet we have a difficult time getting enough quota in China for our production. My question really is whether the Hong Kong Government is negotiating with the other countries, maybe in some form of a scheme of converting the Hong Kong quota for us to use in China or somewhere else?

Governor: This is where I'd like to hand over the answer to my Private Secretary who previously worked in the Trade and Industry Branch, and if he were standing at the podium, rather than flannelling he would give you an eloquent, accurate reply which would more than satisfy you. But since I'm here, I'll have to say that I'll write to you.

Thank you very much indeed. I knew I should have stopped with the previous question.

End/Thursday, July 6, 1995

4

Governor’s speech ♦ ♦ ♦ ♦ ♦

• • *, - . . i (.

Following is the speech by the Governor, the Rt Hon Christopher Patten, at the Hong Kong Exporters’ Association Luncheon today (Thursday):

Mr Wong, Ladies and Gentlemen,

Thank you very much indeed for today’s invitation. I am greatly honoured to h have been invited to join you for this special lunch today, 2!4 years on from a most enjoyable pre-Christmas lunch that I shared with you in 1992. Now I’d better confess that this isn’t my first lunch since then, as you can probably tell from my shape, but the lunches with you have been most pleasant occasions. Sometimes at these lunches with business groups, I recall the words of Adam Smith - who’s invisible hand you, Mr Chairman, wished to exchange for something more tangible. Adam Smith wrote, ’’People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” Can’t think who he was writing about.

He should have been here just now, Mr Chairman, to hear you not contriving to raise prices, but giving voice to the deep concerns felt throughout Hong Kong, by r> business, by the man and woman in the street, and by Government, about rising costs. A point which you, Mr Chairman, have put very vigorously in my Business Council.

In most respects Hong Kong's economy has been doing very well. We are now into our 35th year of uninterrupted economic growth. If you said that back in the United Kingdom, they wouldn’t believe you. Thirty-five years. When I joined you last time, I joined you not just in celebrating Christmas, but in celebrating a year in which Hong Kong’s exports - your business - had increased by 21%. No bad Christmas present. -*<•

What has there been to celebrate since then? One will always find some congenital gloom and doom merchants who will say, "not much", but where lies the X weight of the evidence? Does double digit growth in exports in both 1993 and 1994 give you grounds for gloom? Does 25% growth in exports in May this year compared with May last year give you reason to worry? Does the 13% growth in domestic exports since May last year - mud in the eye for the myth that manufacturing’s days are numbered in Hong Kong - does that make you feel depressed?

Hong Kong's fiscal position is substantially stronger now than it was then. It comes as a great shock I have to say, to a public official who has spent most of his life trying to explain why predicted surpluses turned out to be deficits, to find himself in a position in which he has to explain year after year why predicted deficits turned out to be substantial surpluses. I prefer the latter. We were seriously worried when I last lunched with you, seriously worried about the renewal of China's MFN status by the United States. The hurdles we saw then were overcome. Of course concern remains, though more distant and for different reasons, but I continue to have faith in the ability of good sense and goodwill to resolve those difficulties.

5

Moreover, there are now better mechanisms for handling differences between trading partners, more developed forums for promoting the understanding of how much we all have to benefit from free and fair trade, how much we all have to lose from protection and from managed trade.

I refer of course to the World Trade Organization and to APEC. 2!4 years ago the Uruguay Round negotiations seemed interminable. Now those negotiations have been completed and earlier this year the World Trade Organization, with Hong Kong as a founder member, was set up. It provides a better dispute settlement system, and tighter disciplines on the use of anti-dumping measures or subsidies. It will have many battles to fight but all members have committed themselves to open and free trade. H under an effective multilateral trading system. That system provides Hong Kong with the assurance of opportunity and Hong Kong provides the best living proof of the value of that system.

, 2!4 years ago APEC was at a tentative early stage of growth. Today its members share a common resolve to uphold the multilateral trading system and to achieve a goal of completely free trade in the region by 2020. Later this year in Japan, the APEC Economic Leaders Meeting will be setting out specific proposals on how to achieve that goal and Hong Kong will be hosting some of the preparatory meetings for that gathering.

But I don’t just place my faith in negotiations between trade officials. I don’t just place my faith in solemn declarations of intent. There is a bedrock of plain fact to which, like the authors of an article in the Asian Wall Street Journal the other day, I always point when having to respond to those who exude pessimism about Hong Kong’s prospects.

Hong Kong is immovably fixed at the centre of the area of greatest economic activity on the planet. I don’t just refer to South China, dramatic though the activity there is, with total exports from Guangdong - most of which come through Hong Kong - with total exports from Guangdong last year exceeding total exports from the whole of China ten years ago. Nearby there are other well developed economies that provide important trading partners - Japan, South Korea, Taiwan and so on. There are new opportunities opening up in Vietnam and in the Philippines, in both of which Hong Kong is taking a leading role in investment. Probably, the leading role.

To geographical advantage, we add unshakeable commitment to principles that give to you, to Hong Kong manufacturers, service industries and investors, every freedom and incentive to seize the opportunities that lie open to you, or which, through your endeavour, you can create.

Government keeps taxes low and predictable. It does not make your business decisions for you. It invests heavily in the infrastructure - as you see outside, and in the people you need to do your business efficiently. It upholds and respects the rule of law so that you may have confidence that the law will respect and defend you.

- 6 -

That’s all true, and all well and good, but what about costs? High costs of land and labour do erode competitive advantage. Since the peg with the US dollar must be maintained and the Government is constrained in using all the conventional monetary mechanisms to address inflation, what are we going to do to help you cope with rising costs?

The first thing to do is to help keep things in perspective. Costs may have gone up here, but they are going up in our competitors too. The labour cost indicators for Hong Kong and for Singapore experienced the same rate of increase over the period between 1989 and 1993, and the differential between average wages is slight. Rents may be higher here, but in Singapore, as the Economist pointed out last year, phone bills are higher - 90% higher to Vietnam, 80% more to France or Italy - company car costs are 79% higher, and air fares average 35% higher. You will also pay 27% in corporate taxes compared to 16.5% here.

We don’t just talk, we act. A key area of activity is dealing with bottlenecks in the economy. Hong Kong faces physical bottlenecks as well as mismatches between the supply and the demand for labour. To address the physical constraints, we have massive programmes of investment in transport infrastructure, both for road and rail on land and in maritime and aviation facilities. We are making huge investments in the supply of serviced land for development.

On the labour and employment front, we are investing increasingly large amounts in the training and retraining of our workforce and encouraging the development of new industry and technology. This year the Vocational Training Council will spend $1.4 billion, providing full-time courses for 43,000 people and part-time courses for another 66,000. By the end of this financial year, the Employees Retraining Board will have provided courses for over 50,000 displaced workers. The Hong Kong Productivity Council will be running over 600 training courses and giving consultancy support to over 1,000 projects. The Industrial Support Fund will be providing over $200 million in assistance this year, and it’s already contributed nearly $500 million to develop over 100 projects. The UPGC is providing $260 million in funding for research projects in our tertiary education sector this year, and the Applied Research Council has just come into operation. All that - all that without undermining the principle of minimum interference in the economy - all that amounts to a serious attempt to help Hong Kong adjust to the demands of a competitive world; to ensure that new jobs can be created in new industries; and to ensure that those who are unemployed, or are displaced by changes in the economy, can find new skills and new opportunities.

We are also facing up to artificial bottlenecks in the economy, created where inadequate competition fails to give customers choice, so fails to provide incentives to keep costs down.

7

As exporters, you face both physical and artificial bottlenecks at present with the port. Your success is putting huge demands on the port's capacity and the limited choice of service providers gives you little room to negotiate on costs.

Those concerns over competition and capacity underlay the arrangements that were made for the development of Container Terminal 9. Your interests, Hbng Kong's interests, will be served by resolving that dispute as quickly as possible.

It has been very encouraging that in recent weeks we have seen significant progress on a number of issues of concern to you and to many both within and without Hong Kong. We have reached agreement on the setting up of a Court of Final Appeal. Financial Support Agreements on the airport and the airport railway projects have been concluded, as have the award of franchises for air cargo operations at the new airport.

I welcome these agreements. They are good for business, they are good for everyone in Hong Kong. I think they reflect a growing understanding of the fact that Hong Kong cannot afford, to wait for uncertainties to be resolved. It is not a Ming vase whose value can only be retained by preserving it behind glass. It is more in the nature of a tool box whose value comes from being put daily to good use, whose value is preserved by being adapted and developed to meet new demands and new opportunities.

Maintaining Hong Kong in good working order isn't just a matter of getting negotiations over future arrangements right, it depends just as much on getting on with the business of today. I know from the statistics that you are doing that enthusiastically and I can assure you that the Hong Kong Government shares your enthusiasm for moving ahead.

We have worked hard to ensure that the Legislative Council election this September can be conducted smoothly and that all who want to do so can participate. To uphold human rights and freedoms, we have reviewed and modernised over 40 pieces of legislation in the last few years and will soon be dealing with the few question marks that remain. Following the agreement on the Court of Final Appeal, which I referred to, we are, as you know, taking the Bill through the Legislative Council at the moment. We trust that the Council will support this very important development of Hong Kong's own autonomous legal structure. As soon as the Bill is passed, we will begin all the practical work needed to ensure that the Court can be up and functioning on schedule in July 1997.

On the property front, we will continue with measures to curb speculation and to improve supply. We aim to strengthen the social fabric of Hong Kong with the commitment to provident schemes - which, again, we trust the Legislative Council will support by passing the enabling legislation contained in the Mandatory Provident Fund Bill.

8

One third of the airport and related infrastructure projects have already been completed. Now that we have the financial support agreements, we will be pressing ahead with even more vigour. The Route 3 and Western Harbour Crossing projects are well on track and as you know, we are exploring with the Chinese authorities the railway projects and other cross border infrastructure that will help Hong Kong to serve the economic development of Southern China even more effectively than it does already.

Hong Kong lives by looking forward. That means there will always be a full agenda of work for Government to do, as well as more than enough business for you to be getting on with. I can give you my assurance that the Hong Kong Government today is fully committed to getting on with its work with enthusiasm and to ensuring that the Hong Kong SAR Government is as well placed as possible in 1997 - well placed financially, well supplied with capable officers, well placed with ideas - so as to carry on smoothly with the successful administration of Hong Kong. I have no doubt that you will carry on your business with as much energy and enterprise.

The Hong Kong story - you've heard this so many times - has been an astonishingly successful one. Where are the natural assets of Hong Kong? Harbour and people. But those natural assets have been enough to turn what was largely a refugee community forty-five years ago, into one of the most successful economies in the world. An economy which has managed to take in its stride a great deal of turbulence in the region, changing according to market forces, turning itself into an economy now so successful that it represents - and this is pretty well the only statistic you ever need to carry in your head - so that it represents about 26% of China's GDP. People sometimes think there must be some simple solution. There isn't a simple solution. There's a combination of reasons for our success. There's of course our commitment to market economics. But that's not the same as saying that we've followed crude capitalism without thinking that the Government has a role in our lives. The Government hasn't, thank heavens, tried to play a role in your lives, as business leaders. It hasn't tried to second guess you. But it has invested substantially in what economists call social equity programmes, invested in people's health, invested in people's housing, invested in people's education and training. So that we now have one of the most educated skilled workforces in the world.

You can also look for other reasons for our success - for the rule of law, for a civil service which is impartial, competent, professional and clean. A civil service led by women and men - better get the order right - of the distinction of Anson Chan, Donald Tsang, Joseph Yam and all those other civil servants who are, and I've seen the operations of government in other places, who are as competent as the civil service you would find anywhere in the world. We also know that this has been a hardworking, committed, enthusiastic community which believes that men and women can, by their own efforts, make things better. It comes as an astonishing proposition to some European politicians who pass by from time to time.

9

And what’s been the overall consequence of all those ingredients when you pull them together? It's been that we've been more competitive than most of the others. That's the end result. That's why we've been able to grow and prosper. That's why we've been able to invest more in our own happiness, in the community programmes, in our own individual aspirations and ambitions. Part of your role, as an organisation, is to go on reminding government, whether the Governor or some of his distinguished advisers, but the moment we forget in Hong Kong the importance of maintaining our competitive edge, that's the moment when governors or chief executives won't be able to talk any more about decades of uninterrupted economic growth. So thank you for your invitation today, and thank you for so consistently reminding us of the basic truths of Hong Kong's success.

End/Thursday, July 6, 1995

Transcript of the CS's media session *****

The following is a transcript of the media session by the Chief Secretary, Mrs Anson Chan, after a visit to the border this (Thursday) afternoon:

Question: When will you next take ... Beijing ... ?

Chief Secretary: I don't know. The frank answer is we didn't discuss exact dates but both Vice Premier Qian and Director Lu agreed that there should be more contact, or regular contact at my level, at senior official level, so that we can get to know each other better. We have an opportunity to discuss problems and to hopefully seek solution to these problems. So, I think that's an excellent beginning.

There is no question of by-passing the Governor. 1 agree entirely with the remarks that the Governor yesterday made. The Governor is the head of the Hong Kong Government. I am a member of his team. I'm responsible to him. But, in addition to my self, there are other policy secretaries and senior officials. 1 think you will agree that in any organisation there has to be team work. There has to be mutual trust, shared objectives and our objective is quite clearly, from the Governor downward, is to work faithfully for the implementation of the Joint Declaration and the Basic Law, to work for a smooth transition and to maintain Hong Kong's stability and prosperity. 1 hope very much that in the way that I currently enjoy a close and trusting relationship with the Governor that I can similarly develop a close and trusting relationship with Chinese leaders.

10

Question: Will you agree with LegCo members on the ... ?

Chief Secretary: I don't really think I have very much to add to the public statement that I have already made. I stress again that no negotiations were involved. There's no question of any deals, whether under the table or over the table. This is a good beginning. I believe that it is welcome by the general public and particularly by civil servants. One of my upper most concerns is of course to give as much reassurance and confidence to civil servants. From what I hear from my colleagues, they all believe that this is a good beginning and we'll build on that. Thank you.

End/Thursday, July 6. 1995

Views invited on the implementation of UN treaties *****

The Government has invited the views of the Legislative Council, nongovernment organisations and other interested parties on the state of implementation in Hong Kong of the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the United Nations Convention on the Rights of the Child (UNCRC).

In 1994. the Government undertook that - before making submissions to the United Kingdom - it would give the Legislative Council, non-govemment organisations and other interested parties a formal opportunity to express their views on the state of implementation in Hong Kong of the various United Nations covenants and conventions applying to the territory. Accordingly, letters have been issued to the Legislative Council Secretariat today (Thursday), inviting views in respect of the ICESCR and the UNCRC.

I'he United Kingdom Government ratified the ICESCR in 1976 in respect of the United Kingdom and its dependent territories, including Hong Kong. It ratified the UNCRC in 1991 and extended it to Hong Kong in 1994.

"Article 16 of the ICESCR and Article 44 of the UNCRC require the United Kingdom Government - as a State Party - to submit periodic reports to the Secretary General of the United Nations, for transmission to the Committee for Economic, Social and Cultural Rights and the Committee on the Rights of the Child for consideration," a Government spokesman said.

The United Kingdom Government has notified the Hong Kong Government that the Third Periodic Report under the ICESCR and its Initial Report under the UNCRC are now due. The ICESCR report will cover developments up to July 31, 1995. The one on the UNCRC will cover developments up to September 7, 1995, which is the first anniversary of its extension to Hong Kong.

11

The Hong Kong Government will contribute to the report by preparing draft submissions to the United Kingdom on the implementation of the ICESCR and the UNCRC in Hong Kong.

"To enable the Government to take into account views expressed during the drafting of the report - and to meet the deadline for submission to the United Nations -comments will need to reach the Government by September 8, 1995."

To facilitate comments, the Government has prepared outlines of topics which it intends to include in the draft reports.

Non-govemment organisations or individuals who would like to express their views can write to the Secretary for Home Affairs before September 8, 1995. Copies of the outlines of the draft reports can be obtained from the Home Affairs Branch, 31st floor, Southorn Centre, Wan Chai, on request.

End/Thursday, July 6. 1995

Govt deals with bottlenecks at economy * * * * *

A key area of the Government's activity is dealing with bottlenecks in the economy, the Governor, the Rt Hon Christopher Patten, said today (Thursday).

Speaking at the luncheon meeting of the Hong Kong Exporters’ Association, Mr Patten said Hong Kong faced physical bottlenecks as well as mismatches between the supply and the demand of the labour.

"To address the physical constraints, we have massive programmes of investment in transport infrastructure, both for road and rail on land and in maritime and aviation facilities.

"We are making huge investments in the supply of serviced land for development."

He noted that the Government was investing increasingly large amounts in the training and retraining of the workforce and encouraging the development of new industry and technology.

This year the Vocational Training Council will spend $1.4 billion, providing full-time courses for 43,000 people and part-time courses for another 66,000.

12

By the end of this financial year, the Employees Retraining Board will have provided courses for more than 50,000 displaced workers.

The Hong Kong Productivity Council will be running over 600 training courses and giving consultancy support to over 1,000 projects.

The Industrial Support Fund will be providing over $200 million in assistance this year, and has already contributed nearly $500 million to develop over 100 projects.

The Governor added that exporters faced both physical and artificial bottlenecks at present with the port.

He said a quick resolution over the development of Container Terminal 9 would be in Hong Kong and the exporters’ interest.

The Governor said: "I can give you my assurance that the Hong Kong Government today is fully committed to getting on with its work with enthusiasm and to ensuring that the Hong Kong SAR Government is as well placed as possible in 1997 - well placed financially, well supplied with capable officers, well placed with ideas -so as to carry on smoothly with the successful administration of Hong Kong.”

End/Thursday, July 6, 1995

HK and New Zealand sign investment agreement *****

External investment has played a vital role in Hong Kong’s development and has helped the territory to become an international centre for trade, finance and manufacturing, the Secretary for Trade and Industry, Mr Chau Tak-hei, said today (Thursday).

An Investment Promotion and Protection Agreement (IPPA) was signed in Hong Kong by Mr Chau, on behalf of the Hong Kong Government, and the Deputy Prime Minister and Minister of Foreign Affairs and Trade of New Zealand, the Rt Hon Don McKinnon, representing the Government of New Zealand.

Speaking at the signing ceremony, Mr Chau said in the manufacturing sector alone, accumulated inward investment grew from HK$30 billion in 1990 to over HK$40 billion in 1993.

13

"But the value of inward investment to Hong Kong does not lie simply in the additional capital. We have benefited greatly from the new ideas and technology which had accompanied new investment.

"For that reason, we seek to encourage the continued growth of external investment in Hong Kong. That is why, with the authorisation of the British Government and the agreement of the Chinese Government, we have sought to negotiate Investment Promotion and Protection Agreements with our major investment partners extending well beyond 1997."

This is the sixth agreement Hong Kong has signed in this important area of investment promotion and protection. Other agreements have been made with the Netherlands, Australia, Denmark, Sweden and Switzerland.

"Several more agreements are in the pipeline, and should be ready for signature later in the year. We believe that overseas investors will welcome the assurances provided by these agreements, all of which will remain in force well beyond 1997," Mr Chau said.

Such agreements are bilateral agreements binding under international law which aim to encourage and protect, on a reciprocal basis, investments by investors of one contracting party in the other’s area. Mr Chau said today’s agreement would further strengthen the excellent trade and other relations between Hong Kong and New Zealand.

"The agreements guarantee fair treatment for investors, proper compensation if investments are expropriated and the free transfer of investments and returns.

"They also provide for investment disputes to be settled in accordance with prescribed and equitable procedures," Mr Chau said.

The agreement signed today will enter into force 30 days after signature, and will remain effective for an initial period of 15 years. Thereafter, it will remain in force indefinitely, unless terminated by either parly by giving one year’s written notice.

End/Thursday, July 6. 1995

14

BEC to publish revised election guidelines *****

The Boundary and Election Commission (BEC) will tomorrow (Friday) publish the revised guidelines on election-related activities for the September Legislative Council Elections, after taking into account the representations received in the onemonth public consultation in April.

The BEC Chairman. Mr Justice Woo Kwok-hing, said the revised guidelines contained improvements to the electoral arrangements to ensure that they would be open, fair, and honest.

The BEC received a total of 33 written submissions and met seven individuals and organisations to listen to their views on the proposed guidelines.

The Chairman said although there had been suggestions for a "cooling-off day" on the polling day when all electioneering activities would be banned, many people, after consultation, agreed that it would be more practicable to set up a "no canvassing area" outside each polling station.

Mr Justice Woo also outlined the major electoral arrangements for the September elections:

Polling Arrangements

There will be a "centralised" polling station each for the Ejection Committee Constituency, the Urban Council. Regional Council and Rural functional constituencies (FCs). For the remaining 26 FCs, polling will be held on a territory-wide basis and in the same 492 polling stations designated for the geographical constituency (GC) elections.

* In each polling station for both GC and FCs. there will be two sets of ballot boxes, one for the relevant GC and the other for the 26 FCs.

* The ballot papers for the GC and the different FCs are easily distinguishable by different colour patterns. Each of the 26 FCs will be assigned both a letter code and a Chinese character code printed on the front of the ballot paper (the letter code will also be printed on the back of the ballot paper) to facilitate easy identification in the polling and counting process.

15

* An elector registered only for the GC will be issued one ballot paper whereas an elector registered for both the GC and an FC will be issued two different ballot papers. The two ballot papers issued to the elector will be issued at the same time. Therefore, such an elector who wishes to exercise both of his votes will have to do so at the same visit to the polling station.

* A red cardboard will be issued to every elector who has received two ballot papers, and a white cardboard to every elector who has received only one ballot paper. This arrangement is to facilitate control and monitoring so that no elector can take away any ballot paper from the polling station. The cardboard must be returned to the polling staff before the elector leaves the polling station.

Nomination of Candidates

* Any person may seek advice from the Nomination Advisory Committee (NAC) regarding his qualifications for candidature.

* fhe Returning Officer (RO) concerned is required to have regard to the NAC's advice on a candidate in deciding whether that candidate is qualified for nomination.

Observing the Poll

* To ensure the secrecy of vote and to enhance transparency of the polling process, the following measures will be implemented:

(a) polling booth will be curtained;

(b) templates will be made available for the blind electors to mark their ballot papers themselves without assistance from polling staff;

(c) candidates and their agents may observe (he issue of ballot papers to electors and the crossing out of the relevant entries from the copy of the register of electors; d. (he Presiding Officer will inform candidates and their agents, before and after the poll, the number of unissued ballot papers in his possession.

* To ensure a smooth polling process, the Presiding Officer may regulate the number ofclectors, candidates, election agents and polling agents to be admitted to the polling station at any one lime.

16

Delivery of Ballot Boxes

Up to two candidates/agents may join the escort party to deliver the ballot boxes to the counting station. Where there arc more than two such persons present, the Presiding Officer will draw lots to decide which of them may join the delivery.

Display of Election Advertisements

* About two-thirds of the public spots designated with a GC will be allocated to candidates of that GC. The remaining one-third will be allocated to candidates of the nine new FCs. Where appropriate, designated spots will be allocated to candidates of the 17 old FCs.

* Display of election advertisements without authorisation is an offence punishable by a fine, which will be treated as election expense. A candidate is required to submit a declaration on the election advertisements which he intends to display with two samples or photos. A copy of each authorisation must also be deposited with the RO.

* Election advertisements must be serial numbered except those exempted which include:

(a) single sheet not larger than A-4 size with printing details;

(b) election advertisements sent to electors through the free postage service or transmitted by electronic means, and

(c) balloons.

Electioneering in Public Housing Estates

* The deadline for the candidate to apply for approval to conduct electioneering activities in public housing estates has been reduced to at least one clean working day before the intended activity (previously two working days).

Prohibition against Cunvassing.AvriYjtiy^i_cHilsi<lc_P<?Jlin^_Staii<Mis

* A large "no canvassing area" (NCA) will be designated outside each polling station to ensure the free and safe passage of electors into the polling station. In the public places within a NCA. except for authorised static display, no canvassing activities will be allowed. A "no staying area" will also be designated immediately outside the entrance of a polling station to avoid any obstruction of entry.

17

Exit Poll

* Exit polls may be conducted by any person or organisation. For the purpose of better control, persons or organisations intending to conduct exit polls must provide the required information to the Registration and Electoral Office (REO) at least seven days before the polling day.

Counting Arrangements

* There will be one counting station for each of the ECC, the UC and the RC and the Rual FCs (the venue for the counting station may be the same as the polling station). The counting of votes for the 20 GCs and 26 FCs will be undertaken in a central counting station under the overall supervision and co-ordination of a Chief Returning Officer.

Copies of the guidelines will be available for collection tomorrow at district offices, the REO and Government Publications Centre, ground floor, Low Block, Queensway Government Offices.

End/Thursday, July 6, 1995

CS visits border *****

The Chief Secretary, Mrs Anson Chan, today (Thursday) visited the border to see for herself the latest developments in the area.

Accompanied by the acting Director of Home Affairs, Mr Philip Chok, and the North District Officer, Mr Tommy Yuen, Mrs Chan first called on the Man Kam To (MKT) Control Point — one of the four gazetted border crossing points between Hong Kong and China — where she was briefed on the current border traffic situation and future development plans.

Two other vehicle crossing points were situated at Lok Ma Chau (LMC) and Sha Tau Kok (STK) while the one for train passengers at Lo Wu.

On average, the four control points process a total of 24,500 vehicles and 110,000 passengers each day.

Mrs Chan was also given details of a project to modify and improve the existing carriageway at MKT targeted for completion by 1995-96.

18

Long-term plans to construct a new road from MKT to New Territories Circular Road and to expand the border crossing facilities were expected to cost $2.53 billion and be completed in 2002.

Mrs Chan was then introduced to a almost completed project to double the capacity of northbound vehicle holding area at MKT.

At present, the MKT crossing point is operated between 7 am and 10 pm and the 12 kiosks there have a capacity to handle 16,200 vehicles per day. In 1995, the average number of vehicles processed at the check point was 9,500 each day.

The LMC and STK check points handles 13,000 and 2,000 vehicles respectively daily.

Mrs Chan also inspected the MKT Cargo Examination Complex to understand the vehicle inspection process and view exhibits seized in past cases.

Between April last year and March this year, about $43.2 million worth of antiques, dangerous drugs and cigarettes and cellular phones and batteries were seized at control points.

Mrs Chan then visited the Lo Wu Terminal Building where she was briefed on re-development of Lo Wu Station and passenger traffic control measures.

Before concluding the visit, she toured the six-storey terminal building which has a total of 202 immigration counters to process 26,200 travellers an hour.

End/Thursday, July 6, 1995

Results of 93 Survey of Storage, Communication, Financing, Insurance and Business Services * * * *

The financing (except banking), insurance and communication industries registered a significant growth in 1993.

Compared with 1992, the business receipts and other income, i.e. total receipts, went up by 36%, 21% and 17% in value terms for the three service industries respectively.

The business services industry also recorded an increase of 10% in the total receipts over 1992. A mild increase of 4% was registered in the storage industry.

i 19 -

These are some of the major findings of the 1993 Survey of Storage, Communication, Financing, Insurance and Business Services, released today (Thursday) by the Census and Statistics Department. The survey was conducted from May 1994 to early 1995.

All value figures in this press release are expressed in current price terms. Percentage changes derived from these figures have not been adjusted for price changes. Caution should therefore be taken in interpreting the survey results.

In 1993, there were some 4,100 establishments operating in the financing (except banking) industry, an increase of 9% over 1992. The industry comprises loan and mortgage companies, credit institutions, finance leasing companies, pawnshops, investment and holding companies, securities, futures and gold bullion brokers and dealers, money changers and foreign exchange brokers and dealers.

The survey did not include banking institutions and deposit-taking companies which were separately covered under the 1993 Survey of Banks, Deposit-taking Companies, Restricted Licence Banks and Representative Offices of Foreign Banks. The results of the latter survey will, however, be included also in the report on the former survey.

The financing (except banking) industry generated $95.3 billion of total receipts, a significant increase of 36% over 1992.

The gross surplus of the industry accounted for 62.0% of the total receipts. This was 4.8 percentage points higher than the corresponding figure for 1992.

On the other hand, the total operating expenditure - comprising compensation of employees, operating expenses and value of purchases of goods for sale — of the industry accounted for 38.0% of the total receipts, a decrease of 4.8 percentage points from the figure for 1992.

The total value added of the financing (except banking) industry, a measure of the industry’s contribution to Hong Kong’s Gross Domestic Product, increased by 67% to $12.5 billion in 1993. It accounted for 13.2% of the total receipts in 1993, which was 2.4 percentage points higher than the figure for 1992. It should, however, be noted that the total value added calculated for the industry did not include that for investment and holding companies owing to the special features of their business operations.

In the insurance industry, which includes general insurers, life insurers and insurance agents, there were some 2,300 establishments in operation in 1993, an increase of 25% over 1992.

20

The insurance industry generated $34.5 billion of total receipts in 1993, an increase of 21% over 1992.

The total operating expenditure of the industry accounted for 22.9% of the total receipts, registering a decline of 2.0 percentage points when compared with 1992.

In the communication industry, there were 570 establishments in operation in 1993, an increase of 20% over 1992. These include telephone, telegraph, courier and radio-paging companies.

Total receipts generated by these establishments amounted to $34.1 billion, which was 17% higher than 1992.

The gross surplus of the industry accounted for 37.1% of the total receipts, a decrease of 0.2 percentage point from the figure for 1992.

The total operating expenditure of the industry amounted to 62.9% of the total receipts. This was 0.2 percentage point above the figure for 1992.

The total value added of these establishments was $18.1 billion in 1993, representing an increase of 16% over 1992. It accounted for 52.9% of the total receipts, a decrease of 0.4 percentage point from 1992.

In the business services industry, there were some 16 900 establishments in operation in 1993, an increase of 9% over 1992. The industry includes legal, accounting, auditing, data processing, advertising and marketing firms and companies providing miscellaneous business services such as business management and consultancy, employment, secretarial, technical and machincry/equipment rental services.

Total receipts generated by these establishments amounted to $53.0 billion, an increase of 10% over 1992.

The gross surplus of the industry accounted for 20.6% of the total receipts, an increase of 0.4 percentage point over 1992.

The total operating expenditure of the industry amounted to 79.4% of the total receipts. This was 0.4 percentage point lower than the figure for 1992.

The total value added of these establishments, grew by 8% from $22.9 billion in 1992 to $24.8 billion in 1993. It constituted 46.8% of the total receipts and was 0.7 percentage point lower than the figure for 1992.

21

In the storage industry, there were 250 establishments in operation in 1993, a small increase of 2% over 1992. The total receipts generated by these establishments amounted to $3.9 billion, an increase of 4% over 1992.

On the other hand, the industry’s gross surplus accounted for 12.1% of the total receipts in 1993, a drop of 1.1 percentage points from the figure for 1992.

The total operating expenditure of the industry accounted for 87.9% of the total receipts. Compared with 1992, this was higher by 1.1 percentage points.

The total value added of the storage industry also decreased by 7% to $1.3 billion in 1993. It accounted for 32.9% of the total receipts, and was 4.1 percentage points lower than the figure for 1992.

The attached table compares some selected principal statistics by major industry group between 1992 and 1993.

More detailed results together with the background and methodology of the survey will be given in a full survey report to be published in around August 1995. The report will be on sale in August at the Government Publications Centre of the Information Services Department, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong; and the Publications Section of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Enquiries regarding the survey results may be directed to the Business Services Statistics Section of the Census and Statistics Department on tel 2802 1244.

End/Thursday, July 6, 1995

Comparison of selected principal statistics for all establishments in the Storage, Communication, Financing, Insurance and Business Services Industries between 1992 and 1993

Industry Number of establishments Number of persons engaged Number of employees Compensation of employees Operating expenses Value of purchases of goods for sale Business receipts and other income Value added Gross surplus

SMn. SMn. SMn. SMn. SMn. SMn.

Storage 1993 249 5 391 5 389 700.0 2,686.3 - 3,852.6 1,267.7 466.3

1992 244 5 616 5611 673.4 2,541.2 - 3,702.4 1,369.1 487.8

% change +2 -4 -4 +4 +6 - +4 -7 -4

Communication 1993 567 33 708 33 266 5,548.0 14,212.3 1,699.4 34,116.4 18,058.1 12,656.7

1992 472 31 078 30 584 4,820.7 12,148.1 1,326.9 29,166.4 15,544.7 10,870.6

% change +20 +8 +9 +15 +17 +28 +17 +16 +16

Financing 1993 4 135 40 876 39 261 11,732.6 24,509.6 95,281.4 12,535.5 59,039.1 I

(except 1992 3 807 38 267 36 998 9,288.2 20,755.2 70,190.0 7,518.7 40,146.6

banking) % change +9 +7 +6 +26 +18 - +36 +67 +47 N)

Business 1993 16 928 111489 100 178 14,939.4 25,504.4 1,584.2 52,963.4 24,764.0 10,935.5 1

Services 1992 15 544 110 476 98 874 14,097.5 23,234.9 1,178.6 48,293.7 22,914.6 9,782.7

% change +9 +1 +1 +6 +10 +34 +10 +8 + 12

Insurance 1993 2 306 25 120 23 917 5,073.1 2,830.2 - 34,503.7 -

1992 1 850 24 045 22 954 4,431.4 2,689.1 28,617.9 -

% change +25 +4 +4 +14 +5 - +21 -

Notes : (1) In the financing (except banking) industry, value added was not compiled for investment and holding companies owing to the special features of tlieir business operations. Hence, total value added calculated for the industry did not include that of investment and holding companies.

(2) In the insurance industry, both value added and gross surplus were not compiled.

(3) Figures denoting changes are derived from unrounded figures.

(4) Value added is a measure of the contribution of an economic sector/industry to Hong Kong’s Gross Domestic Product. The definition can be found in the "Report on 1993 Survey of Storage, Communication, Financing, Insurance and Business Services".

(ETab)PRESS93.XLS

23

Study on water heater and cooking fuel market completed ♦ ♦ ♦ ♦ ♦

The Government today (Thursday) welcomed the publication of the Consumer Council’s report on assessing competition in the water heater and cooking fuel market.

"We congratulate the Consumer Council on completion of a most thorough study,” a Government spokesman said.

it: ,

"This is a complex subject and we will examine very carefully the recommendations in the report. A Government response will be finalised before the end of the year."

"We welcome comments on the report from the general public as well as interested parties. We will approach the recommendations with an open mind taking into account these comments."

Those who wish to express their views on the report may do so by writing to the Economic Services Branch, Hong Kong Government at second floor, Main Wing, Central Government Offices, Ice House Street, Central before August 31, 1995.

End/Thursday, July 6, 1995

Contract signing for transfer station * ♦ ♦ ♦ ♦

The Environmental Protection Department (EPD) today (Thursday) signed a contract for the development of the Island West Transfer Station (IWTS), which is the first of its kind to be constructed inside a man-made cavern.

Located underneath Mount Davis at Kennedy Town, the transfer station will be built at a capital cost of $640 million and with an annual operating cost of about $56 million.

The contract was awarded to the Swire BFI Waste Services Ltd, which is a joint venture between Swire Pacific Ltd and Browning Ferris Industries Inc.

Speaking at the contract signing ceremony, EPD’s acting Deputy Director, Mr Mike Stokoe, said: "The fact that IWTS is built inside a man-made cavern is because of a lack of suitable land in the urban area for refuse transfer station development.

24

"The feasibility of siting the IWTS inside a cavern was first explored by the Civil Engineering Department in 1990. The arrangement will result in environmental benefits as well as economic advantage through releasing other pieces of valuable land in the urban area for alternative development."

As with other waste management projects, the IWTS will be developed under a "design, build and operate" contract arrangement. The contractor will be responsible for operating the station for 15 years.

Mr Stokoe said the IWTS would be built to very high environmental standards and be capable of processing 1,000 tonnes of refuse a day. Wastewater treatment plant and odour removal equipment will be installed inside the facility to ensure that no nuisance will be caused to nearby residents.

In addition to handling waste collected by the Urban Services Department, the IWTS will also handle privately collected waste on the Hong Kong Island.

All the wastes received at the station will be transferred in sealed containers by vessels to the West New Territories Landfill for disposal.

"IWTS is the second transfer facility serving the Hong Kong Island and will commence operation in early 1997. Together with the Island East Transfer Station, these facilities will provide a joint handling capacity of over 2,200 tonnes per day, which is sufficient to accommodate all waste arisings from Hong Kong Island," Mr Stokoe said.

"Just as equally important as the provision of waste facilities, we are developing strategy to further reduce and recycle waste generated in Hong Kong. We have commissioned a study on this subject and it is expected to be completed in August this year," he added.

End/Thursday, July 6, 1995

25

Hong Kong Gurkha sets ’’impossible" record *****

A Gurkha officer based in Hong Kong has broken all known records in the British Army's premier shooting competition, completed at Bisley, Surrey, southern England today (Thursday), by winning the Queen's Medal for an unprecedented third time - a feat previously considered impossible.

Captain Dharmendra Gurung was already a legend in the Army for becoming the first man ever to win the coveted Medal - which marks its holder as the best shot in the British Army - twice. This week he astounded experts by becoming the first man ever to win it three times - the shooting equivalent of three successive holes in one on the world's most difficult golf course.

The contest for the Queen's Medal involves several different competitions, all using rifles, spread over a period of three days.

Captain Gurung is the Resettlement Office with 1st Battalion, The Royal Gurkha Rifles, at Malaya Lines, Sek Kong. He is due to retire from the Army next year.

Other Hong Kong units have also done well in this year's competition. Lance Corporal Yan Suk-yin of the Royal Hong Kong Regiment (The Volunteers) won the Territorial Army Women's Pistol Competition. The Hong Kong Military Service Corps was 4th in the Regular Anny Pistol Competition, and the Royal Hong Kong Regiment (The Volunteers), 4th in the TA Pistol Competition.

End/Thursday, July 6, 1995

1995 Outstanding Home Economics Students Award Scheme *****

The Assistant Director of Education Department (Chief Inspector of Schools), Mr Ho Che-leung, officiate on Saturday (July 8) at the prize-presentation ceremony of the 1995 Outstanding Home Economics Students Award Scheme.

The scheme aims at promoting secondary students' interests in Home Economics and developing their appreciation of the value of the subject especially in meeting their future personal and family needs.

I he theme of this year's scheme is "Home Economics and I". More than 60 students from 49 secondary schools took part in the scheme.

26

The 1995 Outstanding Home Economics Students Award Scheme is organised by the Home Economics Section, Advisory Inspectorate of the Education Department and sponsored by Nestle China Limited.

Attention News Editors:

Your representatives are invited to cover the prize- presentation ceremony of the 1995 Outstanding Home Economics Students Award Scheme at 10.30 am on Saturday (July 8) at the Granville Room, Conrad Hotel, Pacific Place, 88 Queensway.

End/Thursday, July 6, 1995

New Yau Tong Post Office to be opened *****

The Postmaster General, Mr Mike Pagliari, announced today (Thursday) that a new Yau Tong Post Office located at Unit No 3. ground floor, Ko Yuen House, Ko Yee Estate, Yau Tong, will be opened at 9.30 am on July 17. This office will replace the existing post office at Block 1A, Ko Chiu Road Estate, Yau Tong, which will be closed for business at 1 pm on July 15.

The hours of business and telephone number of the new office will be the same as those of the existing office.

Local philatelists will wish to note that a special handback service will be available at the Yau Tong Post Office on July 17. Unregistered fully postage prepaid covers prepared privately and bearing the superscription "First Day Cover" and a local address, will be accepted over the counter, impressed with the normal post office datestamp and handed back to the person presenting them.

End/Thursday, July 6, 1995

27

Grading of beach water quality

The Environmental Protection Department (EPD) today (Thursday) announced the latest grading of Hong Kong's beaches, based on the bacteriological water quality.

The purpose of the grading system is to inform swimmers and the general public about the state of bacteriological pollution at various beaches.

The grading will be announced bi-weekly during the bathing season to coincide with the frequency at which beach waters are usually sampled.

The grading is based on the most recent data obtained by the department in its routine monitoring programme.

It gives an estimate on the risk of contracting some minor skin or gastrointestinal illnesses resulted from swimming at a beach with some degree of pollution.

The estimate is based on a large scale epidemiological study carried out in Hong Kong in the past bathing seasons.

The grading of some beaches fluctuates during the summer. In most cases, this represents a natural fluctuation in the bacteriological quality of bathing waters as rain and tides bring more or less pollution to the beaches.

Beaches with highly developed hinterlands are likely to be more polluted than the grades suggested during and after heavy rain.

Principal Environmental Protection Officer Dr Daniel Lau said: "Bathers should avoid swimming at such beaches for two to three days after a storm, or even longer if the weather remains overcast, shorter if there is strong sunshine."

However, the bi-weekly grades give a general picture of the most recent water quality at bathing beaches at the time of reporting and form the best available forecast for the immediate future.

The system for grading beach water quality is as follows :

Grade "1" indicates that the water quality is good. The E coli count is no more than 24 per 100 millilitres at each beach so graded, and the expected risk of minor illness to swimmers is undetectable.

28

Grade ”2” indicates that the water quality is fair. The E coli count is no more than 180 per 100 millilitres at each beach so graded, and the expected health risk is no more than 10 cases of minor illness per 1,000 swimmers.

Grade "3” indicates that the water quality is poor. The E coli count is no more than 610 per 100 millilitres at each beach so graded, and the expected health risk is no more than 15 cases of minor illness per 1,000 swimmers.

Grade "4” indicates that the water quality is very poor. The E coli count is more than 610 per 100 millilitres at each beach so graded, and the expected health risk is more than 15 cases of minor illness per 1,000 swimmers.

The decision whether or not to close a beach to swimmers is based on a judgment of what degree of pollution is acceptable.

Normally, the closure of a beach would only be considered by the Urban or Regional Council if a grade "4” occurred repeatedly, so that the average health risk over the bathing season exceeded 15 cases per 1,000 swimmers.

At present four gazetted beaches, namely Anglers’, Castle Peak, Old Cafeteria, and Rocky Bay, are closed to swimmers. The decision to close the beaches has been made by the Regional and Urban Councils on the basis of beach water quality monitoring data for 1994. The public are advised not to swim at these beaches. They are identified by an ”X” in the following list.

The grades of the bacteriological water quality of various beaches in Hong Kong today are listed below :

Beach Previous Grading (as at 22.6.95) Present Grading (as at 6.7.95)

Hong Kong South

Big Wave Bay 2 2

Chung Hom Kok 1 1

Deep Water Bay 1 1

Hairpin 2 1

Middle Bay 2 2

Repulse Bay 1 1

ShekO 2 2

South Bay 1 1

St. Stephen’s 1 1

Turtle Cove 1 2

Stanley Main 3 3

Rocky Bay X X

To Tei Wan* 1 1

29

Tuen Mun District

Golden Beach Old Cafeteria New Cafeteria Castle Peak Kadoorie Butterfly

Sai Kung District

Campers

Clear Water Bay 1st Beach Clear Water Bay 2nd Beach Hap Mun Bay Kiu Tsui Pak Sha Chau Silverstrand

Trio (Hebe Haven)

2 2

X X

2 2

X X

2 2

3 3

1 1

2 2

2 2

2 1

1 1

1 1

2 3

2 1

Islands District

Cheung Sha Upper 1

Cheung Sha Lower 3

Discovery Bay* 2

Hung Shing Yeh 1

Kwun Yam Wan ' 2

Tong Fuk 1

Lo So Shing 1

Pui O 2

Silvermine Bay 2

Tung Wan, Cheung Chau 2

Tung O* 1

1

3

2 1

2

1 1

2 3

2 1

30

Tsuen Wan District

Anglers'

Approach

Casam

Gemini

Hoi Mei Wan

Lido

Ting Kau

Tung Wan, Ma Wan

X

4

3

3

3

3

4

2

X

4

3

3

3

3

4

2

Note: "X" The beach has been closed for swimming purposes.

* Non-gazetted beaches.

The following beaches have changed grading on this occasion:

Hairpin, Hap Mun Bay and Trio (Hebe Haven) from "2" to "1"; Turtle Cove from "1" to "2"; Silverstrand and Silvermine Bay from "2" to "3".

The changes are within the normal range of fluctuation of the bacteriological water quality of these beaches.

•U:

Attention News Editors:

For further enquiries, please contact Principal Environmental Protection Officer Dr Daniel La, at 2835 1216.

End/Thursday, July 6, 1995

; t f

31

Hong Kong Monetary Authority money market operations * ♦ ♦ * ♦

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,871 0930 +642

Closing balance in the account 1,777 1000 +642

Change attributable to: 1100 +592

Money market activity +592 1130 +592

LAF today -686 1500 +592

1600 +592

LAF rate 4.25% bid/6.25% offer TWI 118.4 *+0.1 * 6.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.32 2 years 2705 6.40 100.96 5.93

1 month 5.39 3 years 3804 6.90 101.96 6.22

3 months 5.47 5 years 5006 6.60 99.32 6.88

6 months 12 months 5.52 5.62 5 years M501 7.90 102.75 7.35

Total turnover of EF bills and notes - $9,117 million

Closed July 6, 1995

End/Thursday, July 6, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Friday, July 7,1995

Contents Page No.

JLG Joint Communique.................................................... 1

Press statement by Mr Hugh Davies after JLG meeting in London....... 1

Transcript of the Governor's media session.............................. 3

Hong Kong enters period of positive co-op with China: CS................ 4

The Chief Secretary's speech............................................ 6

Transcript of the Chief Secretary's Q & A session...................... 13

Volume and price movements of external trade in April 1995 ............ 15

Comments on briefing out costs in Bumiputra case....................... 21

FS (Designate) calls on Japanese Foreign Minister...................... 21

Report of the Informal Group on Secondary Mortgage Market.............. 22

Vigilance for sharks to remain as summer holidays approach............. 23

Progress report on the Government's anti-drugs initiatives............. 25

/Market competition....

Contents

Page No.

Market competition does good to telecommunications....................... 26

Bank Brussels Lambert S.A. granted licence............................... 27

Central and Western District Health Festival............................. 27

Reclamation works to be carried out in Sham Tseng........................ 28

New road for Peng Chau proposed.......................................... 30

Road works in Hung Hom................................................... 31

Bull's Nose Banyan puts down new roots................................... 32

176 redundant teachers found jobs........................................ 32

Dualling of Sha Tau Kok Road............................................. 33

Hong Kong Monetary Authority money market operations..................... 34

1

JLG Joint Communique ♦ * ♦ ♦ ♦

The Joint Liaison Group held its thirty-third meeting in London on 4, 5 and 7 July 1995.

■ . •

The Group had a discussion about the Transfer of Government, including the transitional Budget and related matters, transfer of archives, etc; matters relating to Hong Kong's international rights and obligations; Hong Kong's air services agreements and air services arrangements between Hong Kong and Taiwan; Civil Service matters; the defence of Hong Kong and public order; franchises and contracts extending beyond 1997 and related matters, including reclamation plans, the Railway Development Strategy and Container terminals; Hong Kong's sewage disposal scheme; investment promotion and protection agreements between Hong Kong and relevant countries; surrender of fugitive offenders agreements between Hong Kong and relevant countries; mutual legal assistance in criminal matters between Hong Kong and certain countries; the reciprocal enforcement of judgements between Hong Kong and foreign countries; localisation of laws; adaptation of laws; the Court of Final Appeal; the implementation of the provisions of the Joint Declaration relating to the right of abode in Hong Kong after 1997; Visa Abolition Agreements; retirement protection and social welfare; Vietnamese Migrants in Hong Kong (Boat People and Refugees); intellectual property ; and the transfer of sentenced persons.

The next meeting of the Joint Liaison Group will take place in Peking at a time to be agreed by the two sides.

End/Friday, July 7, 1995

Press statement by Mr Hugh Davies after JLG meeting in London ♦ ♦ ♦ ♦ ♦

The following statement by Mr Hugh Davies is issued on behalf of the Office of the British Senior Representative of Sino-British Joint Liaison Group:

You should by now have received copies of the Joint Communique which merely lists the subjects covered in our talks this week. I would like to try to add some flesh to these bare bones, and to say something about the wider context of the work of the Joint Liaison Group and Sino-British relations over Hong Kong.

2

As you know, we have in the past month taken some important steps forward in the JLG. First we reached agreement on the Court of Final Appeal: and then on 30 June, just before our departure for London, we resolved the two Financial Support Agreements for the Airport and Airport Railway and signed an agreed minute on the Air Cargo franchises. There have also been other encouraging signs of improved Sino-British relations over Hong Kong; as you know, the Chinese Foreign Minister, Qian Qichen, has accepted an invitation to visit Britain in October. Also, last week the Chief Secretary, Anson Chan, met Mr Qian Qichen and Director Lu Ping in Peking.

These developments have certainly provided a constructive background for our JLG work. There is, I think, an improved atmosphere and a desire on both sides to make the most of the limited time available to us before the reversion of Hong Kong to Chinese sovereignty on 1 July 1997.

At this meeting we have achieved a modest crop of agreements. For example, we have agreed on the localisation of UK legislation on biological weapons and, aircraft security. We have endorsed one further Investment Promotion and Protection Agreement. And we have signed an agreed minute on the China Motor Bus franchise.

if'' . i' f

On the other hand, I have no particular progress to report on major outstanding issues such as CT9, Right of Abode, Visa Abolition and adaptation of laws. But on these, both sides have expressed their determination to find ways to break the deadlock, and we will be pursuing these and other matters at expert level on our return to Hong Kong.

I do not want to give you the impression that the Joint Liaison Group is on the verge of a new dawn. The fact is that we are dealing with many very difficult and complex subjects and our discussions remain stuck in a number of key areas. But I am nevertheless hopeful that we can build on our recent achievements. A number of expert meetings will take place in the next four weeks and we for our part will certainly do our best to maintain the momentum. We have a formidable agenda in front of us and will be tackling it with a renewed determination in the months to come.

End/Friday, July 7, 1995

3

Transcript of the Governor's media session *****

The following is a transcript of the Governor, the Rt Hon Christopher Patten's media session after a preview of an exhibition in the Chinese University this (Friday) afternoon:

Question: (on the Legco panel report on briefing out costs)

Governor: We'll obviously study the report of the Legislative Council Panel. We've already implemented a number of measures to improve the management of the department. The Attorney General has my complete confidence. I'm overall responsible for the Government of Hong Kong. I think he does a first class job. We all have lessons to learn from this case. I can assure you that we will leam them. But he's been first Class public servant in Hong Kong.

Question: What immediate measures will you take to pacify the Legislative Councillors?

Governor: I don't think that Legislative Councillors look for pacification. I think they look for us to be sincere in improving the management of all our departments including the attorney's chambers and that's something we are doing.

Question: The Consumer Council said that Towngas in Hong Kong is...Do you think the Government should...

Governor: We are studying the report and will respond to it in due course.

Question: (inaudible)

Governor: I don't think that alas the Chinese side in those negotiations have unblocked the CT9 project. I wish they had. Our proposals were as you know designed to help develop the port while increasing the competitiveness within the port facilities. That was a sensible proposal for Hong Kong and we still stand by the importance of the objectives that we set a couple of years ago.

Question: Governor, how much time will you take to investigate the Bumiputra case report submitted by the Legislative Council to you today?

Governor: We'll do that with proper expedition.

4

Question: (on nationality of minority groups in Hong Kong)

Governor: First of all I imagine that the British Government will need to know rather more about Chinese views on nationality and on the SAR passport. I think they will find it quite difficult to come to a view until the details of the passport are clear.

Question: Do you think Mr Mathews ... his job?

Governor: I answered that question earlier quite clearly and unequivocally.

End/Friday, July 7, 1995 , .. ,J,

Hong Kong enters period of positive co-op with China: CS

* * * * *

... -

With the agreements on the Court of Final Appeal (CFA) and the new airport reached in quick succession, the Hong Kong, British and Chinese governments can now hope to enter into a period of positive co-operation, the Chief Secretary, Mrs Anson Chan said today (Friday).

l J ■■ »>•.- ■ I ■

Speaking at the luncheon meeting of the India Chamber of Commerce, Mrs Chan, also pointed out that to ensure a smooth transition of government, a series of essential, but yet unaccomplished, tasks are still needed to be resolved in the months to come.

She said Hong Kong so far had agreed 16 localised bills with the Chinese side covering civil aviation, merchant shipping and other areas as well as made adaptation proposals for about 130 out of the 600 ordinances.

"But we need to move much faster. There are still 15 localisation bills to be agreed with the Chinese side," she said. ,

During her speech, Mrs Chan also refuted the suggestions made by various people, including the Chairman of the Bar Association, that the agreement reached with the Chinese side on the CFA undermined the rule of law and the independence of the Judiciary.

They claimed that the so-call 4+1 composition of the CFA breaches the Joint Declaration and the Basic Law and that the jurisdiction of the CFA will be restricted.

5

"Well, quite frankly, these claims are totally misguided and misleading,” said the Chief Secretary, adding that the agreement reached on June 9 was in Hong Kong’s best interests.

"The only alternative, quite frankly, is a judicial vacuum in 1997 until the SAR Government sets up the CFA, at a time and on a basis about which there can be no certainty."

Besides the rule of law, said Mrs Chan, a second guarantee of Hong Kong’s successful capitalist system was a sound and effective infrastructure..

"It is important for Hong Kong to maintain its status as a centre of global and regional aviation, as well as an international financial and business centre," she said, welcoming Financial Support Agreements reached with the Chinese side.

With the two major agreements reached in quick succession and coupled with her recent visit to Beijing, said Mrs Chan: "I very much hope that we will now enter into a period of most positive co-operation between the British/Hong Kong and the Chinese governments."

The Chief Secretary also outlined a number of essential tasks which needed to be resolved to ensure a smooth transition.

These include the immigration issues, container terminals, air services agreements and retirement protection as well as the localisation and adaptation of laws.

. The key to maintain Hong Kong’s overall stability and confidence was a smooth transfer of government, she stressed, adding that she was pleased to note the recent results of co-operation between the British and Chinese Governments.

"But I am confident that, with the commitment of both sides, we will be able to achieve a smooth transition," said Mrs Chan.

End/Friday, July 7, 1995

6

The Chief Secretary's speech ♦ ♦ ♦ ♦ ♦

Following is the speech of the Chief Secretary, Mrs Anson Chan, at the luncheon meeting hosted by the Indian Chamber of Commerce today (Friday):

Mr Handasani, Members of the Indian Chamber of Commerce, Ladies and Gentlemen,

I. Introduction

Can I first of all apologise for my late arrival at this function. I think it will now be clear to you all why I was unable to keep to the previous commitment to speak to you all, but I am delighted that you have managed to rearrange the schedule for today's meeting, although I am very sorry that some of you who wanted to attend this luncheon are in the event unable to do so because of the difficulty in booking a venue. But I do apologise and I am delighted to have this occasion to speak to you all.

Can I first of all say that the contribution of the Indian Chamber of Commerce, your members, and indeed the entire Indian community, to the well-being and prosperity of Hong Kong is deeply appreciated. You are as much a part of the Hong Kong history and Hong Kong community as local Chinese. Your Chairman referred, just now, to your concern over British Passports for ethnic Indians. As you well know, the Government has been pressing the case with the British Government. Unfortunately, as the Chairman pointed out, we have not, so far, been successful but you can be assured that we will continue to press your case. But I also hope that the remarks of Mr Lu Ping, when he last addressed this problem, particularly in terms of assuring you all that you are all most welcome to stay in Hong Kong after 1997, and that for second and third generation Indians you can apply for Chinese nationality, will go some way towards addressing your concern, although I fully accept that it does not address your complete concern.

Contrary to conventional wisdom, summer appears, in our mind, to be somewhat a season that concentrates minds better, certainly in so far as reaching agreements about Hong Kong's future is concerned. Let me illustrate. One year ago, on 30 June 1994, the Legislative Council passed the second stage of the electoral reform package. This same day we reached agreement with the Chinese side on the future use of Hong Kong's defence estate. This year, I am very glad to note that four weeks ago, on June 9, the Senior Representatives to the Joint Liaison Group signed an agreement on the Court of Final Appeal. And three weeks later, on 30 June, we concluded discussions with the Chinese side on the long awaited Airport and Airport Railway Financial Support Agreements. At the same time, we reached agreement on the air cargo franchises. I very much hope that further agreements, especially on the important outstanding issues, will be reached in the coming months.

7

This afternoon, I would like to review with you all some of the important points on the two agreements reached in June. Thereafter, I would like to outline a series of essential, but as yet unaccomplished, tasks - some of which I know will be of direct concern to you - for a smooth transition which need to be resolved in the months to come.

II. Rule of Law

The very existence of an Indian Chamber of Commerce in Hong Kong illustrates several points: for example that Hong Kong is a free and capitalist society where international investment is always welcomed.

So, how do we ensure that this success is maintained? How do we ensure that we can all continue to enjoy living and doing business here? One important ingredient is the rule of law.

Court of Final Appeal

Our legal system is firmly based on the rule of law and the independence of the Judiciary. Public and international confidence in our independent judicial system has always been an important part of Hong Kong's success. Both the Joint Declaration and the Basic Law provide that the present judicial system will be maintained after the transfer of sovereignty in 1997, except for those changes consequent upon establishment of a Hong Kong-based Court of Final Appeal (CFA for short) to replace the Judicial Committee of the Privy Council as Hong Kong's highest appellate court.

As you know, on June 9 the British and Chinese Senior Representatives to the Joint Liaison Group signed a 5-point agreement reached by their experts. Now I was not then in Hong Kong, but I know that Mr Michael Leung, as Acting Chief Secretary, wrote to your Chairman that very afternoon to inform you of the details of this important agreement.

The agreement is a good one for Hong Kong, and a good one for the rule of law in Hong Kong. It guarantees the establishment of a proper court of final appeal in Hong Kong, to be set up on 1 July 1997, with Sino-British co-operation, on the basis of the established principles and practices of the Judicial Committee of the Privy Council and in accordance with the CFA Bill which we introduced into the Legislative Council on 14 June. I hope very much that the Legislative Council will enact the CFA Bill before the current session ends at the end of this month. For far too long, there has been uncertainty about the CFA. Local and international businessmen, and the people of Hong Kong, have asked how the CFA will be set up, when it will be set up and what sort of court it will be. Our agreement with the Chinese side has provided the answers to these questions. No doubt that is why the agreement has been welcomed by the business community, by Hong Kong's major trading partners and - according to independent opinion polls - by the people of Hong Kong as well.

8

I would like to take this opportunity to refute the suggestions made by some people, including the .Chairman of the Bar Association, that the agreement that we reached with the Chinese side undermines the rule of law and the independence of the Judiciary. They claim that the so-called 4+1 composition of the CFA breaches the Joint Declaration and the Basic Law, that the jurisdiction of the CFA will be restricted because we have agreed to incorporate in the CFA Bill the formulation of "acts of state" in Article 19 of the Basic Law, and that it will be disastrous to delay the setting up of the CFA until 1 July 1997. Well, quite frankly, these claims are totally misguided and misleading.

Let me explain. The British and Hong Kong Governments have not the slightest doubt that the 4+1 composition is fully consistent with the provisions in the Joint Declaration and the Basic Law that provide for judges from other common law jurisdictions to sit on the CFA. And our view is supported by a number of authoritative independent legal opinions. Indeed the CFA Bill reflects this consistency, by incorporating both the wording of the Joint Declaration and the Basic Law and the 4+1 composition.

The claim that including the formulation of "acts of state" in Article 19 of the Basic Law in the CFA Bill has restricted the jurisdiction of the CFA also has no valid legal basis. As a matter of law, Article 19 of the Basic Law, which provides that the Courts of the Hong Kong Special Administrative Region shall have no jurisdiction over acts of state such as defence and foreign affairs, will be the law of Hong Kong as from 1 July 1997. The CFA Ordinance, which will come into operation on the same day, cannot overrule the Basic Law. So, as a matter of law, the jurisdiction of Hong Kong Courts will be subject to Article 19, whether or not it is included in the CFA Ordinance.

I now turn to the timing for setting up the CFA. It is no secret that we were planning to establish the CFA by July 1996 to give it about a year to build up experience before the transfer of sovereignty. But we would have had to pay a very big price to achieve that. Introducing the CFA Bill into the Legislative Council without Chinese agreement, and with no guarantee that any Court set up as a result would survive 1997, would have meant a loss of public and international confidence because there would have been continuing uncertainty about the form of the CFA after 30 June 1997.

According to the agreement reached on June 9, the preparatory work for the establishment of the Court will be done before the transfer of sovereignty. This is so that on 1 July 1997, the judges can be appointed, the rules of court made, and the Court can commence work immediately. We have received the British Government's assurance that the Privy Council will continue to retain its jurisdiction over cases from Hong Kong up to 30 June 1997, and will give priority to Hong Kong appeals in the months immediately prior to July 1997. Nobody will be deprived of his or her right of final appeal because of any gap between the ending of appeals to the Privy Council and the establishment of the Court of Final Appeal.

9

I think it is pretty obvious from what I have said that the agreement we reached on 9 June is in Hong Kong’s best interests. The only alternative, quite frankly, is a judicial vacuum in 1997 until the SAR Government sets up the CFA, at a time and on a basis about which there can be no certainty. The business sector certainly welcomes the agreement and I hope very much that Members of the Legislative Council will also recognise the benefits of passing the CFA Bill and the serious consequences of not doing so. I am sure that we can count on the support of this Chamber for the agreement and the Bill.

III. The New Airport

A second guarantee of Hong Kong's successful capitalist system is, I will say, a sound and effective infrastructure. It is important for Hong Kong to maintain its status as a centre of global and regional aviation, as well as an international financial and business centre. To this end, we are pressing ahead with construction of the new airport at Chek Lap Kok, and the other nine related projects in the Airport Core Programme.

In the Airport Memorandum Of Understanding signed in September 1991 the Chinese side gave formal support to the Airport Core Programme. On 4 November 1994, an Agreed Minute was signed with the Chinese side on the overall financing arrangements for the new airport and airport railway. This provides that the Government will inject not less than $60.3 billion into the two projects, whilst allowing the Mass Transit Railway Corporation and the Airport Authority to borrow up to $23 billion by the time of project completion. With this assurance in hand, the Mass Transit Railway Corporation were able to award all major contracts for construction of the Airport Railway. On 30 June, as you know, we finally agreed with the Chinese side on the Financial Support Agreements for the two statutory Corporations. We welcome this. The Financial Support Agreements give the two organisations the assurances that they need to obtain the most competitive terms on the $23 billion that they will borrow to complete the airport railway and the first phase of the airport, and for the Government to inject additional equity where necessary and justified.

We have also been consulting the Chinese side on major franchises for the new airport. Agreement has been reached on the terms for the award of the air cargo terminal franchise. But there will be other franchises to consider and work on this will continue in the coming months but we will need to reach agreement with the Chinese expeditiously if the airport’s early and effective operation is not to be adversely affected.

10

IV. What's next?

With two major agreements reached in quick succession and with my own recent visit to Beijing, I very much hope that we will now enter into a period of more positive co-operation between the British/Hong Kong and the Chinese Governments. This is what the community and the Civil Service want to see. But much still remains to be done. I would like to spend the rest of my speech to outline some of the issues that need to be settled to ensure a smooth transition.

Immigration Issues

Firstly, immigration issues, which I know are close to your heart. This is one area that affects the entire Hong Kong community, whether local Chinese or expatriates. It also affects those Hong Kong people who have obtained a second nationality elsewhere. We need to know exactly who will have, and continue to have, a right of abode in Hong Kong after 1997. We need to know when, and how, the SAR passports will be issued. We also need to be certain that the SAR passports will be readily accepted by the international community, thereby guaranteeing our freedom of travel. We have been discussing with the Chinese side how the Immigration Ordinance should be amended to ensure that it is brought into line with the Basic Law. One of the main objectives of this process is to obtain certainty. I cannot overemphasise the importance for us to make quick progress on this, in particular for former Hong Kong people who have acquired foreign nationality. Early resolution of these issues will do much to instil confidence, both amongst the local population and the business community. And I am glad to be able to assure you that discussions with the Chinese are continuing and I think both sides appreciate the urgency in resolving these issues.

Container Terminals

Another area where urgent progress is needed is the container terminals. This is an important element of our infrastucture. It is crucial to Hong Kong's position as a trading port. Our existing facilities are under pressure and we urgently need new ones - but even if we were to start building tomorrow, no new terminals could be brought into use until mid-1997. Put that against our forecasts of demand which tell us that we shall have to provide three new terminals by the turn of the century, then you can readily appreciate why there is an urgency to resolve this issue once and for all. I hope that in the coming months, we can reach agreement with the Chinese side on how to proceed not only in respect of Container Terminal 9 but also Terminal 10 and 11.

11

Air Services Agreements

Coming back now to aviation matters. Construction of Hong Kong’s new airport can now, with last week's agreement, press full steam ahead. But who will use the new airport? We wish to ensure that as complete a set of Air Services Agreements as possible will be in place on 1 July 1997. The two sides have been negotiating on this subject since 1986. But regrettably, after an encouraging start, recent progress has been very slow. So far, 11 Air Services Agreements have been signed, but many more (about 40) Air Services Agreements and Air Transit Agreements will need to be concluded to maintain Hong Kong's status as an international and regional civil aviation centre. It is clearly in Hong Kong's interest, and indeed in China's, that the outstanding agreements are resolved before 1997. Again, we need to see substantive progress on this subject in the months ahead.

Retirement Protection

The physical infrastructure of the Airport and Container Terminals is undoubtedly important. But we also need to improve our social infrastructure. For example, I do not think there is anyone in the community who would deny that those members of our workforce, both employees and the self-employed, who have contributed to our economic well-being and stability, deserve to pass their retirement in dignity and financial security. At present, there are about 560,000 people over the age of 65. That number will rise to about 1 million by the year 2016. For many years now, we have been discussing the best way of providing for such retirement protection in Hong Kong and quite frankly, we cannot go on talking, we must now take positive action to proceed. And after extensive consultation with the Legislative Council and within the community, we have now put forward firm proposals on how this important issue should be addressed.

From the results of submissions and in subsequent discussions received on the proposal for the Old Aged Pension Scheme, we have concluded that a system of Mandatory Provident Fund Schemes is the one that most accords with Hong Kong's way of life and one that commands the most support. That is why we introduced a Bill into the Legislative Council last month to provide for an accountable retirement protection system.

The MPF Schemes Bill will provide for retirement protection coverage for all employees and self-employed persons between the ages of 18 and 65, unless they fall into one of the exempted categories. Employers and employees would each be required to contribute 5% of the latter's relevant income to a registered scheme. All benefits derived from these contributions would be preserved until the beneficiary reached the age of 65, left the workforce permanently at or after the age of 60, or under prescribed circumstances such as emigration. There would be provision for the accrued benefits to be transferred from the scheme operated for the former employer to that run for the new employer when an employee changes job.

12

It remains our aim for the Bill to be enacted before the end of the current legislative session this month. Let me stress that this Bill is an enabling Bill setting out the principal features of the proposed scheme. Many details will need to be discussed and agreed subsequent to the passing of the Bill. These details will then be enshrined in subsidiary legislation to be enacted in the next session of the Legislative Council. In other words, there will be ample time for consultation with the Chinese side, with the Legislative Council and with other interested sectors of the community over the next 18 months. I hope that all parties concerned, will work together with us to bring about certainty in retirement protection and I encourage you all to provide comments on the detailed implementation aspects of the Mandatory Provident Fund Scheme.

Legal Continuity - Localisation and Adaptation of Laws

So far, I have concentrated on issues which reflect Hong Kong's need for a sound infrastructure, both physical and social. We should not forget the rule of law, the foundation of Hong Kong's success. In Hong Kong we enjoy legal certainty. Everybody knows the consequences of unlawful actions, as well as the sort of protection provided by the law. The Joint Declaration ensures that our existing laws shall be maintained. Of course, because of the transition some laws will need to be changed, for example British enactments will need to be localised, Hong Kong's own laws will need to be adapted to bring them into line with the Basic Law. This work is one of the more important tasks tackled by the Joint Liaison Group. Some progress is being made. We have, for example, so far agreed 16 localising bills with the Chinese side covering civil aviation, merchant shipping and other areas. We have also made adaptation proposals for about 130 out of the 600 ordinances on the statute book.

But we need to move much faster. There are still 15 localisation bills to be agreed with the Chinese side. We need to agree on a way forward soon on the adaptation programme, if we are to have a complete set of laws which are in force and fully compatible with the Basic Law by 1 July 1997.

liia?

Smooth Transfer of Government

' - 'j.J ^i'.J O.| .1

Aside from specific policy issues, it is essential that there is a smooth transfer of government. This is the key to maintaining Hong Kong's overall stability and confidence and as head of the civil service, I attach great importance to sustaining morale, confidence, and efficiency in the civil service. There are, of course, solid assurances in the Joint Declaration and the Basic Law on the continuity of the civil service. We have agreed with the Chinese side on a new pension scheme, and the setting up of a pension reserve fund for civil servants. We also have a team of local officials who are both experienced and capable of assuming positions in the top echelons of the SAR Government.

13

The Hong Kong Government is committed to co-operating with the Preparatory Committee to be established early next year, as well as with the Chief Executive Officer designate and his team in bringing about a smooth transition.

V. Conclusion

And so to conclude. As I have said at the beginning of my speech, I am very pleased to note the recent results of co-operation between the British and Chinese Governments and I hope that this spirit of co-operation will be strengthened in the weeks and months ahead. In less than two years’ time, Hong Kong will face the most momentous event in its entire history. If this moment is to pass without concern and worry, a great deal of work will need to be done in the Joint Liaison Group and elsewhere. But I am confident that, with the commitment and active co-operation of both sides, we will be able to achieve a smooth transition.

End/Friday. July 7, 1995

Transcript of the Chief Secretary’s Q & A session *****

Following is the transcript of the question-and-answer session by the Chief Secretary, Mrs Anson Chan, at the luncheon meeting of the Indian Chamber of Commerce today (Friday):

Question: (Inaudible)

CS: Let me answer the first part of your observation first. I really cannot agree with your observation, particularly as you say since 1982 that various government departments have been acting in confusion. I think that in the last decade, and in fact over a much longer period successively, we have made very', very serious attempts, and on the whole succeeded, in improving both the quality and quantity of our service. You have just to witness, for example, our commitment, our performance pledges, the fact that we are prepared to make known our standards of how we are doing, we publish our policy commitments and the progress that has been made. So I can assure you that it is the wish and the commitment of every individual civil servant to work towards improving service and towards serving to the best of their ability the Hong Kong community.

Now 1 cannot, of course, comment on individual cases but I am sure the Immigration Department will have an excellent answer to your question. If you care to provide details to the Director of Immigration. I am sure he will be very pleased to explain to you the decisions taken.

14

Question: (Inaudible)

CS: I wouldn’t disagree with your observation that the general aim in enacting the legislation will be to ensure consistency. But on the other hand, laws do have to reflect changes and part of Hong Kong’s success is indeed our ability to respond expeditiously and pragmatically to changes. So the fact that a piece of legislation has been enacted and existed for a period of time does not mean that that piece of legislation will stay immutable for ever more.

Now again, I am not able to, because I don’t quite know which sections of the Immigration Ordinance you are referring to and I must confess I am not familiar with the detailed provisions, but again, if you wish to seek a clarification as to the apparent inconsistency of treatment, I am sure the Director of Immigration will be very happy to answer any questions you may have.

Question: (Inaudible)

CS: Well, as you know, we have a very comprehensive, and indeed we have improved our social security safety net. Those people who are old or indeed who are unable to earn sufficient to maintain themselves and their family, or who are disadvantaged, sick, disabled, etc, they can claim social security payments.

Question: (Inaudible)

CS: Well actually, no. For an average elderly person, if he met all the requirements, he could claim much more than just $2,000. It depends on circumstances. You are quite right in saying there is a basic rate but on top of that we do give additional allowances to meet individual needs because some elderly people may have more needs than others and it is one area that we pay particular attention to. And it is one area where we have, particularly in recent years, spent the greater part of the public expenditure, that is in improving the lot of the elderly population because the community as a whole feels that this is one area that deserves greater support. And I can assure you that this is an area that we will continue to pay very close attention to.

But we feel that the burden of looking after elderly people is a burden that should be shared by the community and by the Government as a whole because if the entire burden was to fall simply just on the Government, then I’m afraid that increasingly, taxpayers will have to bear the burden. But we feel that in this area, quite clearly employers and employees can also play their part and that is why we have designed the Mandatory Provident Fund Scheme.

15

Question: (Inaudible)

CS: Yes, they will continue to benefit. I can assure you that to the extent that some people have not contributed or are unable to contribute, they will be able to rely on social security payments. We are also, of course, at the moment conducting an overall review of the adequacy of social security payments for the entire population, whether it is for the single parent families, for elderly people or for other groups. And in the light of that review we will, of course, decide whether existing levels of payments are adequate and if not, what resources we can devote towards increasing these payments.

End/Friday, July 7, 1995

Volume and price movements of external trade in April 1995

* * * * ♦

In the first four months of 1995, the volume of re-exports increased by 16% over the same period last year, while the volume of domestic exports increased by 7.3%, according to the statistics released today (Friday) by the Census and Statistics Department.

Taking re-exports and domestic exports together, the volume of total exports increased by 15%. Meanwhile, imports increased by 19% 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.

As regards price changes over the same period of comparison, the prices of reexports and domestic exports increased by 3.4% and 2.2% respectively. Import prices increased by 5.6%. 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, decreased by 2.3% in the first four months of 1995 over the same period last year.

Comparing April 1995 with April 1994, the volume of re-exports increased by 9.1%, while that of domestic exports decreased by 1.7%. Taken together, the volume of total exports increased by 7.1%. Meanwhile, the volume of imports grew by 12%.

16

Over the same period of comparison, the prices of re-exports and domestic exports increased by 3.9% and 2.8% respectively. Import prices increased by 6.6%.

The changes in the value, unit value and volume of re-exports by end-use category are shown in Table 1. *

Comparing April 1995 with April 1994, the volume of re-exports of all end-use categories recorded increases of various magnitudes: capital goods (+29%), fuels (+21%), foodstuffs (+10%), raw materials and semi-manufactures (+9.9%), and consumer goods (+1.5%).

Over the same period of comparison, increases in the prices of re-exports were noted of most of the end-use categories: raw materials and semi-manufactures (+9.4%), fuels (+6.0%), foodstuffs (+2.6%), and consumer goods (+2.4%). The reexport price of capital goods decreased by 0.1%.

The changes in the value, unit value and volume of domestic exports by principal commodity group are shown in Table 2.

Comparing April 1995 with April 1994, commodity groups which recorded increases in volume of domestic exports included textile made-ups and related articles (+22%); and electronic components (+14%).

The volume of domestic exports of radios of all kinds and domestic electrical appliances decreased by 37% and 32% respectively.

Commodity groups which recorded increases in domestic export prices included textile made-ups and related articles (+13%); and metal ores and scrap (+9.2%).

The domestic export price of travel goods, handbags and similar articles decreased by 3.0%.

The changes in the value, unit value and volume of imports by end-use category are shown in Table 3.

The import volume of foodstuffs increased by 17% in April 1995 compared with April 1994.

Significant increases in the import volume were noted of soya bean oil, peanut oil, vegetable oil and lard; and milk, butter, cheese and eggs. However, decreases in the import volume were noted of rice; and animals of the bovine species, live. Over the same period of comparison, the import volume of consumer goods increased by 4.4%.

17

Significant increases in import volume were recorded in cameras, flashlight apparatus and supplies for photography; and alcoholic beverages. However, decreases in the import volume were noted of tobacco manufactures; and clothing.

The import volume of raw materials and semi-manufactures increased by 13% in April 1995 compared with April 1994.

Significant increases in import volume were noted of yam of man-made fibres; and chemical elements and compounds. The import volume of silk fabrics; and wood, lumber and cork declined.

Imports of fuels decreased by 5.3% in volume in April 1995 compared with April 1994.

As regards capital goods, the import volume increased by 30% in April 1995 over April 1994.

Notable increases were recorded in the import volume of transport equipment; and office machines. The import volume of textile machinery however declined.

Comparing April 1995 with April 1994, the import prices of all end-use categories increased: raw materials and semi-manufactures (+9.3%), capital goods (+6.3%), consumer goods (+5.1%), foodstuffs (+4.7%), and fuels (+0.1%).

Details of the above statistics are published in the April 1995 issue of the "Hong Kong Trade Index Numbers".

The report will be available on sale around 11 July 1995 at $14 per copy at either the Government Publications Centre on ground floor. Low Block, Queensway Government Offices. 66 Queensway; or the Publications Section of the Census and Statistics Department on the 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai.

Enquiries regarding regular subscription to this report may be directed to the Publications (Sales) Office of the Information Services Department at 28th floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (Tel. No.: 2598 8194) and enquiries on trade indices to the Census and Statistics Department (Tel. No.: 2582 4918).

18

Table 1 : Changes in re-exports by end-use category

Comparing APR 1995 Comparing JAN-APR 1995

with APR 1994 with JAN-APR 1994

End-use category % changes % changes

Value Unit Value Volume Value Unit Value Volume

Foodstuffs 10.7 2.6 10.5 27.4 2.6 26.0

Consumer goods 4.0 2.4 1.5 9.5 2.0 8.2

Raw materials and semi-manufactures 20.9 9.4 9.9 31.9 8.2 21.5

Fuels 25.5 6.0 20.5 25.6 5.7 21.7

Capital goods 26.0 -0.1 29.2 28.0 0.2 30.7

ALL COMMODITIES 13.0 3.9 9.1 19.3 3.4 16.4

19

Table 2 : Changes in domestic exports by principal commodity group

- ** ' • < • j, -'3 Commodity group Comparing APR 1995 with APR 1994 % changes Comparing JAN-APR 1995 with JAN-APR 1994

% changes

Value Unit Value Volume Value Unit Value Volume

Clothing 7.4 2.1 5.3 9.4 1.4 7.9

Textile fabrics -10.6 4.5 - ■14.6 -3.5 4.8 -7.8

Textile yarn and thread -14.7 1.8 - •17.0 1.3 2.2 -1.7

Textile made-ups and related articles 37.5 12.6 22.1 17.3 13.7 2.4

Radios of all kinds -40.2 -1.9 - •37.2 -30.4 -0.3 - ■22.5

Electronic components 17.3 3.9 13.9 31.7 4.2 29.2

Footwear 7.7 7.1 3.2 -52.9 3.3 - -55.3

Metal manufactures -18.1 3.0 - •20.9 0.4 1.9 -0.4

Metal ores and scrap -12.6 9.2 - •19.9 28.9 6.5 17.1

Watches and clocks 9.5 3.4 4.9 14.5 3.0 10.3-

Travel goods, handbags and similar articles -6.4 -3.0 -2.3 -0.5 -4.3 4.8

Domestic electrical appliances -29.9 3.4 - •32.4 -13.7 1.2 - -14.4

ALL COMMODITIES 1.5 2.8 -1.7 9.9 2.2 7.3

20

Table 3 : Changes in imports by end-use category

Comparing APR 1995 with APR 1994 r % changes Comparing JAN-APR 1995 with JAN-APR 1994 % changes

End-use category Value Unit Value Volume Value Unit Value Volume

Foodstuffs 21.5 4.7 16.6 22.6 5.0 16.9

Consumer goods 9.3 5.1 4.4 14.1 4.2 10.3

Raw materials and semi-manufactures 24.3 9.3 13.0 31.7 8.4 21.0

Fuels -2.9 0.1 -5.3 50.5 0.5 48.9

Capital goods 38.3 6.3 30.1 38.6 4.1 33.3

ALL COMMODITIES 20.5 6.6 12.3 25.4 5.6 19.1

End/Friday, July 7, 1995

21

Comments on briefing out costs in Bumiputra case

*****

Commenting on the Report of the Legislative Council Panel on Administration of Justice and Legal Services, on the briefing out costs in the Bumiputra Malaysia Finance Ltd case, a spokesman for the Legal Department said today (Friday):

’’The Panel has made a detailed examination of the issues and has produced a thorough report. We shall study the report carefully and give serious consideration to its observations and recommendations.

"The Panel's Report and the Director of Audit's Report earlier have identified areas where improvements could be made to the briefing out system. We have taken a number of steps to address the issue. Measures have been adopted since the beginning of this year to tighten procedures and to enhance accountability. The Attorney General has appointed a high-level and broadly based Working Party under the Director of Public Prosecutions to conduct a comprehensive review of the system. We are determined to have a system that is cost-effective and accountable to the public. The Panel's Report will be referred to the Working Party which will give careful consideration to the recommendations in it. The Working Party will report to the AG by the end of the year. At that time, we shall report back to the Panel."

End/Friday, July 7, 1995

FS (Designate) calls on Japanese Foreign Minister *****

On the last leg of his three-month familiarisation tour in preparation for assuming office as the Financial Secretary in September, financial Secretary (Designate) Mr Donald Tsang called on Mr Yohei Kono, Japanese Foreign Minister and Deputy Prime Minister, in Tokyo this (Friday) afternoon.

During his meeting with Minister Kono, Mr Tsang reaffirmed Hong Kong's commitment to promoting the liberalisation of trade.

"Hong Kong is looking forward to achieving a substantial outcome at the Osaka APEC Economic Leaders Meeting which proves APEC's credibility." he said.

22

Mr Tsang noted that Hong Kong stood firm in its commitment to free trade and was always ready to assist and co-operate with the Japanese in achieving this goal.

Mr Tsang has spent the past few days in Japan (July 5-7). He met a wide crosssection of business and political leaders, including Governor Matsushita of the Bank of Japan; Chairman Toyoda of Kcidanren; Mr Toru Hashimoto, Chairman of the Federation of Bankers Association of Japan; Mr Tsutomu Hata, former Prime Minister; and other leading politicians.

Ends/Friday. July 7, 1995

Report of the Informal Group on Secondary Mortgage Market *****

According to the Report of the Informal Group on Secondary Mortgage Market released today (Friday) by the Hong Kong Monetary Authority, there are fertile grounds for the development of the secondary mortgage market in Hong Kong. Along with growing affluence of the Hong Kong economy and increasing home ownership, outstanding residential mortgage loans as a percentage of GDP rose from 11.4 per cent in 1984 to 29.2 per cent in 1994.

A properly developed secondary mortgage market can play a useful role in channelling long term funds (such as insurance and pension funds) to meet the rising demand for long-term home financing.

To facilitate market development, the Report has made the following recommendations:

(i) The structure of a mortgage-backed securities (MBS) issue should be as simple as possible.

(ii) MBS issues should preferably be rated by reputable rating agencies.

(iii) The underlying mortgage pool should broadh conform with the benchmark pool.

(iv) Authorised institutions wishing to securitise their mortgages are encouraged to have an early discussion with the HKMA on issues such as balance sheet treatment of the mortgages and capital adequacy ratio for their MBS paper.

23

(v) Some collective effort on the part of market participants in reducing the heterogeneity in the structure of MBS and the underwriting standards is desirable.

Private sector members of the Informal Group consider that the setting up of a government-supported mortgage corporation operating on prudent and profit-oriented principles will contribute to the development of the secondary mortgage market in Hong Kong. The Government will study the views expressed in the Group.

In deciding whether or not the mortgage corporation proposal should be supported, the Government would need to take account of wider issues, including the financial implications, the contribution of the corporation to the stability of the banking system and the development of the debt market, as well as the impact on the property market.

The Informal Group on the Secondary Mortgage Market was set up by the HKMA in February last year. It included representatives of financial institutions which are active participants in the market.

The Report summarises the study carried out by the Informal Group on: (a) different forms of mortgage securitisation; (b) various issues affecting market development including asset quality, liquidity and legal issues; as well as (c) the implications of the development of the secondary mortgage market for the banking system, the debt market, and the property sector. The Report also includes a discussion of the regulatory treatment of mortgage-backed securities.

End/Friday, July 7, 1995

Vigilance for sharks to remain as summer holidays approach

*****

Members of the public should not swim at beaches in Sai Kung District where shark warning signals arc still in force, the Chairman of the Government’s Interdepartmental Working Group on Shark Attacks, Mr Ian Petersen, said today (Friday).

Mr Petersen, who is also the acting Deputy Secretary for Recreation and Culture, made the call after a shark sighting near Clear Water Bay First Beach was reported by the Government 1'lying Service during its routine surveillance duty early this morning.

24

This sighting was the first since June 28.

Mr Petersen pointed out that with the approach of the summer holidays, more people, and especially students, might wish to swim at beaches.

"It is, therefore, of paramount importance that they swim only at gazetted beaches outside Sai Kung and remain vigilant when they engage in any kind of water sports,” he said. Mr Petersen also appealed to teachers and parents to help ensure that their pupils and their children were aware of the potential danger to themselves and how to minimise it. "They should always follow the advice of lifeguards and/or the police on the spot and respond promptly to their instructions for their own safety."

As an alternative to swimming at beaches, he said, they could make use of the 27 swimming pool complexes managed by the two Municipal Councils in various districts, noting that some of these are open from 6.30 am to 10 pm daily.

I

In a bid to put across the message to students before their current school terms terminate in mid-July, posters explaining the danger posed by sharks and the precautions to be taken have been distributed to all primary and secondary schools in the territory by the Inter-departmental Working Group with the assistance of the two Municipal Councils and the Education Department.

These posters are also on display at Information Services Department poster sites and various Government and Municipal Council buildings to drive home the message to the general public, Mr Petersen noted.

Over 4,000 posters have been distributed as part of the publicity package which includes on-going advisory warnings on the radio and the television.

Shark warning flags have been hoisted at the Campers, Clear Water Bay First, Clear Water Bay Second, Hap Mun Bay, Kiu Tsui, Pak Shan Chau, Silverstrand and Trio beaches since June 2.

The Government Flying Service will continue with its dawn surveillance programme over Sai Kung waters on Fridays and weekends to monitor the situation. Lifeguards at gazetted beaches and the Marine Police were also on the alert to spot sharks and respond as necessary.


''- -t ■ - . . V.’t.t ...• » ' ■-•t

- 25 -

Meanwhile, the Working Group will review the situation regularly and to keep the public informed of the latest developments.

Follow-up action is being taken by the Working Group on the recommendations made to the Government by shark expert Mr George Burgess from Florida and Dr Yvonne Sadovy of the University of Hong Kong in their preliminary evaluation, the findings of which were released last week.

End/Friday, July 7, 1995

Progress report on the Government’s anti-drugs initiatives

*****

The Government has released today (Friday) the first quarterly report on the progress of its package of measures to combat the growing problem of drug abuse by young people.

A total of 26 initiatives, covering law enforcement, preventive education, treatment and rehabilitation, and research, were included in the Forward Action Plan announced by the Governor at the summit meeting on drugs held in March this year. All parts of the Government involved in the fight against drugs have worked together to take the measures forward.

The report was issued to keep summit participants informed of the progress made by the Government on a quarterly basis.

End/Friday, July 7, 1995

26

Market competition does good to telecommunications *****

In a vast evolving and hi-tech industry like telecommunications, the most effective way to spur technological innovations and stay competitive is not through Government intervention, but market competition, the Chief Secretary, Mrs Anson Chan, said.

Speaking at the opening ceremony of the Hongkong Telecom Tower today (Friday), the Chief Secretary remarked that Hong Kong was now proud to have one of the most liberal local telecom markets in the world today.

Starting July 1, local fixed network services have been opened to competition.

Mrs Chan said through competition, it was expected that in the next few years, there would be many more intelligent buildings like the Hongkong Telecom Towner and a rapid extension of fibre optic technology and broadband services to all homes and offices in Hong Kong.

"It will give us a head start in the Information Age and turn Hong Kong into an intelligent city well ahead of our competitors," she said.

Mrs Chan said the state-of-the-art optical fibre system in the Tower would help to promote the development of Hong Kong's information super-highway by setting a new standard of building design.

"This very impressive building not only provides the office space to meet the future development of Hongkong Telecom, but it also represents a significant commitment of Hongkong Telecom to the future of Hong Kong," said the Chief Secretary.

End/Friday, July 7. 1995

27

Bank Brussels Lambert S.A. granted licence ♦ ♦ * * *

A Government spokesman said today (Friday) that Bank Brussels Lambert S.A. (BBL) had been granted a banking licence to conduct business in Hong Kong.

BBL was incorporated in Belgium. It ranks 150th in the world and fourth in Belgium in terms of capital. It operates 964 domestic branches and has overseas branches in the United Kingdom, the USA, Singapore, Italy and Spain.

In Hong Kong, BBL has been operating a representative office since October 1985. The bank expects that by upgrading to a branch bank, it would be able better to serve its clients with business transactions in Hong Kong, China and Taiwan.

The principal business of the proposed branch will include trade financing, foreign exchange, money market transactions, corporate and private banking business. It will also provide support to the bank's Beijing Representative Office which was opened in October last year.

The spokesman said the continuing interest of foreign banks in entering the local market reflected Hong Kong's continued importance and attractiveness as a major international financial centre. The licence for BBL is the fourth banking licence granted in 1995.

There are now 183 licensed banks in Hong Kong, of which 152 are incorporated outside the territory.

End/Friday, July 7. 1995

Central and Western District Health Festival * * * * *

A two-week Health Festival will be launched in the Central and Western District on Sunday to arouse health consciousness and promote a better understanding of health education.

Part of the festival will focus on two funfair days on July 9 and July 23 from 11 am to 5 pm in the Hong Kong Park Indoor Games Hall and Western Park Indoor Games Hall respectively.

28

The event was jointly organised by the Central and Western District Board Health Festival Organising Committee, the Urban Council, the Department of Health, the Hospital Authority and with the assistance of various medical organisations.

Programme activities will include free medical check-ups, health talks on various topics, healthy cooking menu contest, video shows on health knowledge, lectures on cancer prevention and other common health problems and game stalls.

Admission, as well as participation in all programme activities, is free.

The officiating guests for the opening ceremony will be the Deputy Secretary for Health and Welfare, Mrs Shelley Lau; the Hospital Chief Executive of Tsan Yuk Hospital, Dr Tina Tam; the Hospital Chief Executive of Queen Mary Hospital, Dr Vivian Wong; Urban Council Member Mr Kam Nai-wai; the Central and Western District Officer, Mr Philip Yung; the Chairman of Central and Western District Board, Mr Yuen Bun-keung; and Chairman of the Organising Committee, Dr Kwok Ka-ki.

Attention News Editors:

Your representatives are invited to cover the opening ceremony of the Central and Western District Health Festival to be held at 2 pm on Sunday (July 9) at the Hong Kong Park Indoor Games Hall.

End/Friday. July 7. 1995

Reclamation works to be carried out in Sham Tseng

*****

The Government will construct a sewall and carry out reclamation in Sham Tseng to provide land for a sewage treatment plant, an open space, an electric substation, a waterfront promenade, and for road widening and realignment of the Castle Peak Road.

The reclamation work will be carried out within an area of 9.14 hectares of foreshore and sea-bed at Sham Tseng, beginning in early 1996 for completion by mid 1997.

29

The extent of the area affected is described in a notice of authorisation published in the Government Gazette today (Friday).

The notice and its related plan can be seen at the Lands Department's Survey and Mapping Office. 14th floor. Murray Building, Garden Road; and at the Tsuen Wan District Office, first floor, Tsuen Wan Station Multi-storey Carpark Building. 174-208 Castle Peak Road. Tsuen Wan. •

Any person who considers that his interest, right or easement in or over the foreshore and sea-bed involved will be affected by the reclamation works may submit a written claim for compensation to the Director of Lands on or before July 7, 1996.

He should state in his submission the sum of money that he is willing to accept in full and final settlement of his claim and submit particulars to substantiate his claim.

Meanwhile, the Government plans to construct a drainage channel discharging • into Tung Chung Wan. The dredging works in connection with this project will be carried out within an area of 41,300 square metres of foreshore and sea-bed in Tung Chung Wan.

The works will commence in February 1996 for completion by about August 1998.

The extent of the area affected is notified in the Gazette today (Friday).

The notice and its related plans can be seen at the notice boards at the following locations:

* Tung Chung Rural Committee Office:

* Ma Wan Chung, Tung Chung:

* Tai O Rural Committee Office:

* Lung Tseng Tau Village:

* Wong Ka Wai Village:

* Sheung Ling Pei Village;

* Ha Ling Pci Village;

I

30

* Fui Yiu Ha Village;

* Wong Nai Uk Village;

Sha Tsui Tau. Tung Chung;

* the Lands Department’s Survey and Mapping Office. 14th floor, Murray Building. Garden Road;

* the Islands District Office, 20th floor. Harbour Building. 38 Pier Road,

Central;

the Islands District Office. Mui Wo Sub-office, ground floor, Mui Wo Government Offices, 2 Ngan Kwong Wan Road. Mui Wo. Lanlau • Island; and

* New Airport Section (NT Office), Lands Department, 22nd floor, Tsuen Wan Government Offices, 38 Sai Lau Kok Road. Tsuen Wan.

Any person who considers that his interest, right or easement in or over the foreshore and sea-bed involved will be affected may submit a written objection to the Director of Lands on or before September 7.

End/Friday. July 7. 1995

New road for Peng Chau proposed * * 4= * *

fhe Territory Development Department’s I long Hong island and Islands Development Office has proposed constructing a new road on Peng Chau.

The new road, which is about 250 metres long, will provide access from Peng Chau Rural Public Housing Estate to l ai Lei Island.

fhe roadworks also include the construction of drainage and other ancillary

works.

A notice of the proposed works was gazetted today (Friday).

31

The plan and scheme of the proposed roadworks can be seen at the Public Enquiry Service Centre of the Central and Western District Office, the Islands District Office and the Islands District Lands Office.

Any person wishing to object to the proposed works should write to the Secretary for Transport, Central Government Offices, East Wing, second floor, Lower Albert Road, Hong Kong no later than September 5.

End/Friday, July 7, 1995

Road works in Hung Hom

*****

The Government intends to implement road works in the Hung Hom Bay reclamation and at the approach roads to the Cross Harbour Tunnel Plaza.

The road works serve to provide a road system for developments on the Hung Hom Bay reclamation and to improve traffic conditions in the Hung Hom and east Tsim Sha Tsui areas near the Cross Harbour Tunnel. Works are expected to start later this year and will be completed in about late 1998.

The Govemor-in-Council has authorised the works with modifications described in a Gazette notice today (Friday).

The notice on the modifications can be seen on notice boards posted near the site.

The plan showing the modifications may be seen by members of the public free of charge at:

* Central and Western District Office, Public Enquiry Service Counter, ground floor, Harbour Building, 38 Pier Road, Central, Hong Kong;

* District Lands Office, Kowloon West, 10th floor, Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon;

* Yau Tsim Mong District Office, ground floor, Mong Kok Government Offices, 30 Luen Wan Street, Kowloon, and;

* Kowloon City District Office, 141-143, Kau Pui Lung Road, first floor, Kowloon.

End/Friday, July 7, 1995

32

Bull’s Nose Banyan puts down new roots ♦ ♦ ♦ ♦ *

The eastern banyan tree, which was caught in mid-flight after having been rooted to the spot before the First World War, was moved from the Bull’s Nose at the Prince of Wales Barracks to its new position on the opposite side of Victoria Basin.

In what was a slow and delicate operation, the "flowerpot”, which had been built around the tree’s rootball, was lifted into the air and then lowered into a barge anchored alongside. Once the Banyan was secured, the barge made the 500-yard journey across the basin where the tree was removed and re-planted on the site of the former HMS Tamar’s workshops.

To appease the God of the Earth, workmen lit joss sticks, burnt paper money and offered up a roasted pig to ensure the tree survived the journey and would take root and flourish in its new spot.

The eastern Banyan lay directly in the path of a proposed road and so work began six months ago to uproot it in preparation for its transfer. The size of its crown was reduced making it less heavy to move and causing less water to be lost through the leaves. Work was also carried out to prune back the tree’s giant rootball.

The western tree is to remain in its old position and when reclamation is completed it will finally lie outside the boundary wall of the barracks, in the raids verge.

. 1

• ’ • • .»’ . i;. .

End/Friday, July 7, 1995

•1 • • i ’ « . > u

176 redundant teachers found jobs ♦ ♦ ♦ ♦ ♦

All redundant teachers registered with the Education Department’s Place Service have been successfully placed in various aided primary schools, an Education Department said today (Friday). ’’The department would like to thank the sponsoring bodies and school authorities for their co-operation in accepting all 176 redundant teachers," the spokesman said.

He said all aided primary schools had been informed that there was no longer a need to reserve vacancies for redundant teachers.

The Placement Service, set up in 1975, has so far assisted some 7,000 redundant aided primary schools teachers in finding jobs.

End/Friday, July 7, 1995

33

Dualling of Sha Tau Kok Road * * * * *

The Govemor-in-Council has authorised the works in connection with the dualling of Sha Tau Kok Road subject to the modifications as given in a notice gazetted today (Friday).

i

The works include widening and reconstruction of the section of Sha Tau Kok Road from Lung Yeuk Tau to Ping Che Road junction from single two-lane to dual two-lane carriageway with a roundabout each at Ma Liu Shui San Tsuen and Lau Shui Heung; construction of a footbridge near Ma Liu Shui San Tsuen; installation of noise barriers; and associated drainage, street lighting, landscaping, watermain diversion; retaining walls and slope works, and other ancillary works.

Works are expected to commence in November and will take 30 months to complete.

The plan can be seen at:

* Central and Western District Office, Public Enquiry Service Centre, ground floor, Harbour Building, 38 Pier Road, Central, Hong Kong;

* District Lands Office, North, sixth floor, North District Government Offices, 3 Pik Fung Road, Fanling, New Territories; and

* North District Office, third floor. North District Government Offices, 3 Pik Fung Road, Fanling, New Territories.

End/Friday, July 7. 1995

34

Hong Kong Monetary Authority money market operations * ♦ * ♦ ♦

Time $ million (hours) Opening balance in the account. 1,777 0930 Closing balance in the account 2,427 1000 Change attributable to : 1100 Money market activity +730 1200 LAF today -80 1500 1600 LAF rate 4.25% bid/6.25% offer TW1 118.5 *+0.1* 7.7.95 Hong Kong Monetary Authority EF bills EF notes Cumulative change (Smillion) +736 +705 +730 +731 +731 +730 1

Terms Yield Term Issue Coupon Price Yield

1 week 5.20 2 years 2705 6.40 101.40 5.67

1 month 5.28 3 years 3804 6.90 102.65 5.94

3 months 5.35 5 years 5006 6.60 100.40 6.61

6 months 5.37 5 years 12 months 5.42 Total turnover of EF bills and notes - M501 7.90 $ 16,012 million 103.85 7.07

Closed July 7,1995

End/Friday, July 7, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Saturday, July 8,1995

Contents Page No,

Delegation to study Australian welfare subvention system................. 1

Consumers' co-operative societies continue to thrive..................... 2

Dental services and reimbursement for welfare recipients................. 3

Lantau taxi fare conversion table for collection.......................   4

Firing practice in August................................................ 4

Flushing water cut in Kowloon East....................................... 5

Hong Kong Monetary Authority money market operations..................... 5

Sunday, July 9,1995

Contents Page No.

Statement on Court of Final Appeal Agreement.............................. 5

Elderly homes invited to apply financial assistance....................... 7

Exhibition to promote employment of the disabled.......................... 9

Grants for children of farming and fishing families...................... 10

PD achieves performance targets.......................................... 10

83,500 pupils allocated Secondary One places......................... 11

Water cuts in Mong Kok and Fo Tan.................................... 13

1

Delegation to study Australian welfare subvention system ♦ ♦ ♦ ♦ ♦

The Deputy Director of Social Welfare, Mrs Louise Wong, will lead a nine-member delegation to visit Australia today (Saturday) to study the social welfare subvention system in New South Wales.

The delegation, comprising representatives from both the government and nongovernmental organisations (NGOs), will hold meetings with their counterparts in Australia and visit some selected welfare services.

"The study tour is aimed at enabling members to see for themselves how the system of performance-based contracts operate in New South Wales," Mrs Wong said.

She said the Social Welfare Department had awarded a $6.4 million contract to a management consultancy firm to review the existing social welfare subvention administration in March this year.

"The review, expected to be completed in 18 months, is conducted with a view to achieving better value for money and to strengthening the department's partnership with NGOs as well as to simplify existing subvention allocation procedures," Mrs Wong said.

In conducting the review, the consultancy firm has teamed up with the New South Wales Department of Community Service which has direct experience as a funding body of welfare services in New South Wales of Australia and in developing performance-based contracts, unit costing and the linking of funding to achievement of standards.

The delegation will return to Hong Kong on July 13 (Thursday).

End/Saturday, July 8, 1995

2

Consumers' co-operative societies continue to thrive ♦ ♦ * ♦ ♦

The Director of Agriculture and Fisheries, Dr Lawrence Lee, has expressed confidence that Hong Kong's consumers' co-operative societies would continue to thrive and serve the needs of their members in the years to come.

Dr Lee was speaking at the dinner reception held at a Sham Shui Po restaurant today (Saturday) to celebrate the 73rd International Co-operative Day.

As registrar of the territory's co-operative societies, Dr Lee said consumers' societies had had a good year with sales totalling $5.3 million and surplus exceeding $2.6 million.

Also on the urban co-operatives, he pointed out that civil servants' co-operative building societies had been assisted by the registration authority to transfer titles to flats and land to their individual members.

As at the end of the previous financial year, some 80 co-operative building societies had applied for voluntary dissolution. Of these applications, 48 societies have completed all the necessary formalities and are in the process of transferring titles to 871 members.

Apart from the 203 urban societies on the register, there are 64 farmers' and 68 fishermen's societies with a total membership of 20,227.

-1 . * • * • • I • *

On the farmers' societies, Dr Lee was pleased to note that the two agricultural federations had continued to lead their member societies to work closely with the Agriculture and Fisheries Department (AFD) in promoting local pig and vegetable production during the past financial* year.

"The 27 vegetable marketing co-operative societies handled a total of 106,000 tonnes or $468 million worth of fresh vegetables, representing 48 per cent of the Vegetable Marketing Organisation's throughput.

"They also undertook a number of infrastructural improvement projects last year, which had benefited 188 farms covering 37 hectares of land.

"Their federation has also played an active role in establishing technical exchanges with its Chinese counterparts, and in encouraging member-farmers to participate in AFD’s Accredited Farm Scheme," said Dr Lee.

3

Launched last November, he said, the scheme had been well received by producers, retailers and consumers.

Dr Lee was pleased to note that the 18 pig raising and agricultural credit cooperative societies had continued to take an active part in promoting local pig production.

The Federation of Pig Raising Co-operative Societies had also been actively reflecting members' views to the Government, thereby contributing to the smooth implementation of the Livestock Farm Licensing Scheme, he added.

Turning to the fishermen's co-operative societies, Dr Lee said they had developed steadily in the previous financial year.

"Savings of their members have continued to contribute to the build-up of the capital of their revolving loan funds, which now stand at $7.3 million. Loans totalling $21 million were granted to members during the year, mainly for the building of new fishing vessels and the purchase of fishing equipment," he said.

Dr Lee also took the opportunity to present meritorious and long service awards to 10 staff in recognition of their contribution to Hong Kong's co-operative movement.

End/Saturday, July 8, 1995

Dental services and reimbursement for welfare recipients *****

In response to press enquiries about the average waiting time for Comprehensive Social Security Assistance recipients for receiving dental services and receiving reimbursement, a spokesman for the Social Welfare Department today (Saturday) said: "The average waiting time for receiving dental treatment is eight working days from the date of request for a dental appointment.

"The waiting time for receiving reimbursement of charges for dental services is nine working days from the date of submission of the cost estimate to the department.

"In emergencies, dental services and reimbursement of charges can be provided within one or two working days."

End/Saturday. July 8. 1995

4

Lantau taxi fare conversion table for collection * * * * *

The Transport Department today (Saturday) announced that the Lantau taxi fare conversion tables showing the existing fare scales as against the new fare scales to be effective from July 14 this year-would be available for collection by taxi owners from Monday (July 10).

A spokesman for the department said the fare increase was still subject to the Legislative Council's consent.

The fare conversion table should be displayed at a prominent position inside a taxi before the taximeter is recalibrated and sealed by the Transport Department during their half-yearly inspections, the spokesman said. Taxi owners can collect the tables at:

1

* Islands District Office,

Mui Wo Sub-office,

ground floor, Mui Wo Government Offices,

No 2 Ngan Kwong Wan Road, Mui Wo, Lantau Island: and

♦ Public Vehicles Section,

Transport Department,

third floor. United Centre, 95 Queensway, Hong Kong.

Taxi owners should produce their taxi registration documents when collecting the conversion tables.

End/Saturday. July 8, 1995

Firing practice in August

*****

Firing practice will take place at the 1 la Tsuen/Castlc Peak Range from 8.30 am to 5 pm on August 14 (Monday).

The public is advised not to enter the area when the red Hag is hoisted.

End/Saturday, July 8, 1995

5

Flushing water cut in Kowloon East *****

Flushing water supply to most premises in Kowloon East will be temporarily suspended from 10 pm on Tuesday (July 1 i) to 9 am the following day to facilitate maintenance work.

The affected areas will include San Po Kong, Ngau Chi Wan, Choi Hung Estate, Choi Wan Estate, Ping Shek Estate, United Christian Hospital, Shun Lee Estate, Shun Tin Estate. Shun On Estate, Shun Chi Court, Shun Lee Tsuen Temporary Housing Area, Ngau Tau Kok, Lok Wah Estate, Jordan Valley, Kowloon Bay, Kwun Tong, Lam Tin, Sau Mau Ping and Cha Kwo Ling.

End/Saturday, July 8, 1995

Hong Kong Monetary Authority money market operations

*****

$ million fime (hours) Cumulative change ($ million)

Opening balance in the account 2,427 09:30 +20

Closing balance in the account ■ 1,572 10:00 +20

Change attributable to: 1 1:00 +20

Money market activity +20 11:30 +20

LAF today -875 15:00

LAF rate 4.25% bid/6.25% offer TW1 118.7 *+0.2* 8.7.95

End/Saturday. July 8.1995

6

Statement on Court of Final Appeal Agreement *****

In response to media enquiries, a government spokesman today (Sunday) described criticisms of the Court of Final Appeal Agreement made by Mr Martin Lee in his ’’ Letter to Hong Kong’’ broadcast on RTHK as deliberately misleading and damaging to confidence in Hong Kong's future.

The spokesman said: ”Mr Lee once again completely distorts the CFA agreement by claiming that it 'creates a hole in the Common Law' and 'accepts Beijing's meaning of the term acts of state'. This is a red herring and Mr Lee knows it - or, at least as a lawyer, he should know it.

"The agreement does no more than acknowledge the fact that from 1 July, 1997 the Basic Law will be the law of Hong Kong, and that the CFA will be subject to it. That has been the case since the Basic Law was promulgated in 1990, and the CFA agreement does nothing to alter that fact - nor, indeed, could it do so.

"It is also nonsense to suggest that the CFA agreement is a 'rotten deal' for the local and international business community. The agreement has been unanimously welcomed by both the local and international business communities, as indeed it has been welcomed by the governments of the United States, Japan, the European Union, Australia, Canada, New Zealand and South Korea.

"Further, it is highly damaging to Hong Kong's reputation abroad and to investor confidence to link the CFA agreement with I long Kong companies shifting their legal domiciles to other countries when few, if any, such companies would have done so since the agreement was announced a month ago, and set against the unanimous endorsement of agreement by the local and international business communities."

Finally, the spokesman said it was astonishingly eccentric leap of logic for Mr Lee to accuse the government of entering secret negotiations while attacking the Governor and the administration for working over lime to 'sell the agreement'.

"The CFA agreement is good for I long Kong and good for the rule of law It buttresses the rule of law in Hong Kong by ending the uncertainty about the establishment of the court and by providing continuity beyond 1997," the spokesman said.

7

”We would be rightly accused of ignoring the interests of the people of Hong Kong if we did not do all we can to explain the agreement to the community in general, and particularly to LegCo which must take the final decision on the acceptability of the agreement.”

End/Sunday, July 9,1995

Elderly homes invited to apply financial assistance * ♦ ♦ ♦ ♦

Operators of residential care homes for the elderly (RCH) who need to improve the condition of their homes are invited to apply for financial assistance from the Social Welfare Department (SWD).

The Residential Care Homes (Elderly Persons) Ordinance, which has come into effect on April 1 this year, provides for the control of RCHs through a licensing system administered by the Director of Social Welfare.

"It aims to ensure that residents in these RCHs receive services of acceptable standards that are of benefit to them physically, emotionally and socially,” a spokesman for the department said today (Sunday).

"The Residential Care Homes (Elderly Persons) Regulation specifies among other things, design and structural requirements as well as fire services requirements for RCHs.

"In order to continue operation of the RCHs, most self-financing homes for the elderly (SFHEs) and private homes for the elderly (PHEs) need to carry out improvement works for meeting the legislative standards," the spokesman said.

In this connection, the Working Group on Care for the Elderly has recommended that a one-off Financial Assistance Scheme be introduced with an aim to assisting these SFHEs and PHEs to comply with the safety precaution, design and structural requirements of the legislation.

"An allocation of $50 million under the Lotteries Fund has been approved by the Subvention and Lotteries Fund Advisory Committee for the Financial Assistance Scheme.

8

"The maximum grant allocated to each RCH can be up to 60 per cent of the approved costs of the improvement works," he added.

The spokesman said grants could be used to carry out improvement works such as fire services installation, electrical installation, gas installation, rectification of unauthorised building works, improvement to fire exits and exit routes, installation of non-slippery tiles and railings and protective barriers as well as other works considered necessary by the Director of Social Welfare.

RCHs should meet the following eligibility criteria before their applications will be considered:

The SFHEs and PHEs should have come into existence and commenced operation at the existing premises before April 1, 1995;

* operators of SFHEs and PHEs should have intention to improve their RCHs for meeting the licensing standards and should continue operation for at least two more years;

the premises where the SFHEs and PHEs are situated must be self-owned properties or have a valid tenancy agreement of not less than two years at the time of application;

* Operators of SFHEs and PHEs should submit evidence to show that the existence of the RCHs has obtained the endorsement of the Ownership Corporation of the building concerned or it is in compliance with the lease conditions and Deed of Mutual Covenant;

* the fee charged by the RCHs should be at a rate not more than the current cost recognised by the Bought Place Scheme for Private Homes for the Elderly; and

* the services provided by the RCHs should be to the satisfaction of the Director of Social Welfare.

4 . . if

Applications for grant from the scheme should be forwarded to SWD's Licensing Office of Residential Care Homes for the Elderly at Room 2354, 23rd floor, Wu Chung House, 213 Queen’s Road East, Wan Chai.

’’Although there is no deadline for applying, applications will be closed once allocation of the $50 million set aside for this purpose is fully committed,” the spokesman said.

Enquiries can be made on tel 2961 7211 or 2834 7414.

End/Sunday, July 9, 1995

Exhibition to promote employment of the disabled $ $ * * >|c

The Labour Department’s Selective Placement Division (SPD) will hold a three-day exhibition from Friday (July 14) in Tsim Sha Tsui to enhance public understanding of the working abilities of the disabled.

"The exhibition forms part of the department's continuous efforts to promote employment opportunities for the disabled and clarify public misconceptions towards them," Senior Labour Officer (Selective Placement), Mrs Jennie Chor, said today (Sunday).

It will include video shows and the display of 18 boards introducing the work disabled employees are performing, the free placement service to the disabled and free recruitment service to employers being offered by the SPD.

Experienced officers will man an enquiry counter to be set up at the venue for answering public enquiries and distributing pamphlets introducing the work of the SPD.

In addition, a quiz game aiming at enhancing public understanding of the disabled will be held during the exhibition. Souvenirs will be given to participants.

"During the exhibition, employers who wish to recruit disabled workers can give details of their vacancies to our staff on-the-spot. Disabled job-seekers can also register at the counter and our staff will arrange interviews for both parties afterwards," Mrs Chor said.

The exhibition to be held at the Western Galley B, New World Centre, 20 Salisbury Road, Tsim Sha Tsui, will be open from 10 am to 6 pm from July 14 to 16.

Mrs Chor also disclosed that the SPD, together with Radio Television Hong Kong, are producing a series of television programmes introducing the working abilities of the disabled.

"The television programmes are expected to be broadcast in August. We hope that the programmes can help increase acceptance of the disabled in the community and thus increase their employment opportunities," Mrs Chor added.

End/Sunday. July 9. 1995

10

Grants for children of farming and fishing families

*****

Children or dependants of farming and fishing families in need of financial assistance for tertiary education are reminded to apply early for the Agricultural Products and Marine Fish Scholarship funds.

A spokesman for the Agriculture and Fisheries Department said applications for the scholarship and grants will close on July 18.

Application forms are obtainable from the department’s headquarters on the 12th floor of Canton Road Government Offices, 393 Canton Road, Kowloon, and from various district agricultural and fisheries liaison offices.

’’Applicants should be Hong Kong residents under 30 years of age,” the spokesman said.

’’The awards will be tenable at any university in Hong Kong and any acceptable overseas institution."

Approved courses for tertiary education include those on agriculture, veterinary science, marine science and biology or any applied science directly relevant to the local agriculture or fisheries and related trades.

Enquiries about application procedures may be directed to the Secretary of the Agricultural Products and Marine Fish Scholarship Funds Advisory Committee on 2733 2244.

End/Sunday, July 9,1995

PD achieves performance targets *****

The Director of Planning, Dr Peter Pun, today (Sunday) said his department had achieved most of its performance targets announced last year.

"The department has achieved the service standard set for 1994 in 90 per cent or higher of the cases in such areas as replying to straightforward oral enquiries and complicated written enquiries as well as processing of development proposals," he said.

11

Dr Pun pointed out that only the work on carrying out site inspection and providing replies on alleged unauthorised developments fell short of the target in the first and second quarters of 1994.

"After the setting up of the Central Enforcement and Prosecution Section in July 1994, the target was achieved in the latter half of the year," he added.

Dr Pun pledged to continue providing efficient, courteous and professional services to the public.

"As an on-going commitment to improving services, the public enquiry counter at the department's headquarters has been enlarged and installed new signage to provide a clean and friendly environment to our users", Dr Pun said.

”To ensure that our performance is effectively monitored and our services are meeting users' needs, a User Liaison Group has been established to provide the department with useful feedback and constructive suggestions.

”We shall continue monitoring our performance against targets and publish our achievements annually,” he added.

Copies of a leaflet on the performance pledge for 1995 are available from the department’s Planning Information and Technical Administration Unit on the 16th floor of Murray Building in Garden Road, District Planning Offices and District Offices.

End/Sunday. July 9, 1995

83,500 pupils allocated Secondary One places ♦ ♦ ♦ ♦ ♦

More than 83,500 pupils have been allocated Secondary One places in this year’s secondary school places allocation exercise, results of which will be released on Wednesday (July 12).

An Education Department spokesman said: ’’All 83,626 pupils participating in the Secondary School Places Allocation exercise, irrespective of their ages, have been allocated Secondary One places in government, aided or private secondary schools.

"The number includes 4,296 pupils (5.14 per cent) who have successfully obtained the discretionary places they applied for earlier this year.

12

"A total of 42,145 pupils (50.40 per cent) have been allocated places according to their first choice and 60,323 pupils (72.13 per cent) according to their first three choices.”

All places allocated are three-year places for which no tuition fees will be charged.

"In addition to the 83.626 pupils, a total of six pupils participating in the Secondary School Places Allocation exercise have been admitted to private secondary schools which joined the Direct Subsidy Scheme," the spokesman said.

Allocation results will be available from pupils' primary schools on Wednesday (July 12). Pupils should follow the arrangements set down by their schools and retuhi to collect the admission slip and allocation slip (attached to their Primary Six identification form) from their schools.

There is only one registration period this year, which is from July 17 (Monday) to 18, 1995. All pupils must report during the registration period to the secondary schools to which they have been allocated. Failure to do so will mean that they have chosen not to take up the places allocated.

In case both the pupil and the parent/guardian are away from Hong Kong during the registration period, they should authorise in writing representatives to comply with the registration procedures on their behalf. Copies of letters of authorisation can be obtained from their primary school heads.

In case of genuine difficulties, the parents or pupils concerned should inform the Education Department's Secondary School Places Allocation Section before the end of the registration period so that alternative arrangements can be made.

"After the registration period, vacancies arising from failure to turn up for registration will be filled at the discretion of individual schools," he added.

When reporting to the secondary schools for registration, pupils are expected to put on their school uniform. They must bring the following:

* Primary Six identification forms, to which their individual allocation slips have been attached;

* the admission slips;

13

* Birth Certificates, Hong Kong Juvenile Identity Cards or other documentary evidence of their date of birth and their status as permanent residents of Hong Kong; (Note: pupils should also bring along their travelling documents if the symbol "C" (for conditional stay) is found at line 7 of the Hong Kong Identity Card)

* latest school reports, if any; and

* two recent passport-sized photographs.

Parents seeking transfers for their children should directly apply to*the schools they prefer. Acceptance is at the sole discretion of the schools concerned. Successful applicants have to retrieve the admission slips from the secondary schools at which they have registered during the registration period and hand them to the schools they wish to transfer to. Parents and pupils are reminded that by retrieving their admission slips, their registration with the schools will be cancelled.

"In case of tropical cyclones, persistent heavy rain or thunderstorms during the registration period, heads of schools and parents should pay attention to announcements in the media for any necessary' special arrangements," the spokesman said.

Enquiries concerning the allocation results should be directed to the Secondary School Places Allocation Section of the Education Department on tel 2891 2200 during office hours.

End/Sunday, July 9, 1995

Water cuts in Mong Kok and Fo fan

*****

Fresh water supply to some premises in Mong Kok will be temporarily suspended from 11 pm on Wednesday (July 12) to 6 am the following day to facilitate water mains leakage detection.

The suspension will affect all the premises at Kadoorie Avenue and Braga Circuit.

14

Meanwhile, flushing water supply to some premises in Fo fan will also be cut off from 3 am to 8 pm on Wednesday to allow for checking of the supply system.

The affected areas will include Fo Tan KCRC Station, KCRC Workshop, Au Pui Wan Street, Wo Heung Street, Wo Shing Street, Wo Shui Street, Wo Liu Hang Road, Min Fong Street, Shek Lau Tung Street, Tsung Tau Ha Road, Kwei Tei Street, Tat Yip Lane, Fo Tan Road, Fo Tan Village, Cheung Lek Mei Street, Shan Mei Street, Ho Lek Pui Street, Sui Fung Lane, Sui Wo Road, Ngau Wu Tok Street, Wong Chuk Yeung Street, Yuen Kong Au Street, Man Hang Street, Sui Wo Court, Sha Tin 33 and Scenery Garden.

End/Sunday, July 9, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Monday, July 10,1995

Contents

Consultants to review cargo forecasts.............................. 1

Survey of wholesale and other trades results released.............. 2

Two High Court judges appointed.................................... 6

Appointment to the Appeal Panel for public housing tenants......... 6

New clinic strengthens services in Tuen Mun........................ 7

Removal of HAB’s Trust Funds Section............................... 8

Container traffic continues to grow................................ 9

Keep dogs under proper control......................................... 9

Third quarter rates due on July 31................................. 11

Water storage figure............................................... 13

Fresh water cut in Sheung Shui..................................... 13

Hong Kong Monetary Authority money market operations............... 13

1

Consultants to review cargo forecasts *****

Demand forecasts for Hong Kong's port are to be examined under a consultancy agreement signed today (Monday) between the Government and GHK (HK) Ltd. Hong Kong's port is a substantial contributor to the economy and provides employment to a large segment of the workforce.

"It is important, therefore, that it is developed to meet forecast demand," the Secretary of the Hong Kong Port Development, Mr Tony Clark, said. "Because our port development is entirely demand-led," Mr Clark said: "we must forecast as accurately as possible what that demand will be.

"Our forecasts of demand take into account the origins and destination of cargo, the development of local and regional ports, including those in the Pearl River Delta.

"Given the importance of the Pearl River Delta as a key source of cargo, we pay particular attention to both the requirements of shippers and shipping lines and to port construction projects which may have a bearing on our own development plan. "Present indications are that port facilities in the Pearl River Delta are likely to continue to feed cargo into Hong Kong's port rather than take cargo away," Mr Clark said.

"This needs to be re-confirmed so that our strategic port development plan continues to take a realistic vision in the future," he said.

The study will review and update the port cargo forecasts prepared in 1993. "Whilst I do not envisage substantial change," Mr Clark said: "it is important that we keep our information as up to date as possible."

The forecasts are the essential building block for the Government's biannual Port Development Strategy Review (PDSR). This review is, in turn, built into the updated Territorial Development Strategy (TDS).

The PDSR is the guide to what port facilities need to be built and within what time frame. This then ensures that the port can continue to contribute to Hong Kong's economy and that the port's demands on Hong Kong's overall infrastructure can be built into the TDS.

The agreement was signed by Mr Jamie Simpson, Director, on behalf of GHK (HK) Ltd. Mr Clark said he was looking forward to working with GHK on this important consultancy. Initial results should be available early next year.

End/Monday, July 10, 1995

2

Survey of wholesale and other trades results released *****

The import/export trade and hotels (including boarding houses) registered a considerable growth in 1993, with the total receipts increased by 12% and 13% respectively when compared with 1992. In the same period, the total receipts of the retail trade, wholesale trade and restaurants also went up moderately, by 9%, 7% and 7% respectively.

These are some of the major results of the 1993 Survey of Wholesale, Retail and Import/Export Trades, Restaurants and Hotels released today (Monday) by the Census and Statistics Department. The Survey was conducted from May last year to early this year.

All value figures in this press release are expressed in cunent price terms. The percentage changes derived from these figures have not been adjusted for price changes. Caution should therefore be taken in interpreting the survey results.

In 1993, there were 99 900 import/export establishments in operation, an increase of 12% over 1992. The total receipts generated by these establishments amounted to $1,754.5 billion, also 12% higher than in 1992.

The total operating expenditure - comprising compensation of employees, operating expenses and value of purchase of goods for sale - incurred by import/export establishments accounted for 94.8% of the total receipts. Net of the expenditure, the gross surplus amounted to 5.2%, which was 0.7 of a percentage point higher than the corresponding figure for 1992.

The value added of these establishments, which is a measure of the industry’s contribution to Hong Kong's Gross Domestic Product, grew significantly by 24% from $126.2 billion in 1992 to $156.4 billion in 1993. It constituted 8.9% of the total receipts, an increase of 0.9 of a percentage point over 1992.

In the hotel business, there were 1,460 hotels and boarding houses in operation in 1993, a decrease of 4% compared with 1992. They generated $17.7 billion of total receipts, an increase of 13% over 1992.

The total operating expenditure of the hotel industry accounted for 76.3% of the total receipts, which was 2.0 percentage points lower than the figure for 1992. The gross surplus made up the remaining 23.7%.

3

The value added of the hotel industry was $10.4 billion in 1993, an increase of 18% over 1992. It accounted for 59.0% of the total receipts, 2.1 percentage points higher than the figure for 1992.

In the retail trade, there were some 57,500 establishments in operation in 1993, a decrease of 5% over 1992. The total receipts generated by these establishments amounted to $236.9 billion, 9% higher than that for 1992. The gross surplus and total operating expenditure of the retail trade accounted for 6.1% and 93.9% of the total receipts respectively, which were similar to the corresponding figures of 6.2% and 93.8% for 1992.

The value added of retail establishments was $30.9 billion in 1993, an increase of9% over 1992. It accounted for 13.1% of the total receipts, same as that for 1992. •

In the wholesale trade, there were some 23,300 establishments in operation in 1993, a slight increase of 1% over 1992. These establishments generated $170.0 billion of total receipts in 1993, an increase of 7% over 1992. The gross surplus and total operating expenditure of the wholesale establishments accounted for 3.8% and 96.2% of the total receipts respectively. These percentage shares were not much different from the figures for 1992.

On the other hand, the value added of these establishments increased significantly by 23% to 14.1 billion in 1993. It accounted for 8.3% of the total receipts, an increase of 1.1 percentage points from the figure for 1992.

In the restaurants business, there were some 10 800 restaurants in operation in 1993, an increase of 6% over 1992. These establishments generated $60.3 billion of total receipts, an increase of 7% over 1992.

The gross surplus and total operating expenditure of restaurants accounted for 6.7% and 93.3% of the total receipts respectively, showing only slight changes when compared with the corresponding figures of 6.5% and 93.5% for 1992. The value added of restaurants increased by 8% to $22.8 billion in 1993. It accounted for 37.9% of the total receipts, which was also not much different from the corresponding percentage share of 37.6% for 1992.

The attached tabic compares some selected principal statistics by major industry group between 1992 and 1993.

4

More detailed results together with the background and methodology of the survey will be given in a full report to be published in around August. The report will be on sale at the Government Publications Centre of the Information Services Department, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong; and the Publications Unit, of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Hong Kong.

Enquiries regarding these survey results may be directed to the Wholesale and Retail Trade Statistics Section of the Census and Statistics Department on 2802 1248.

End/Monday, July 10, 1995

Comparison of Selected Principal Statistics for all establishments in

the ^EolcsaleJtaaiLaiidImport and Export Trades. Restaurants and Hotels Sector between 1992 and 1993

Major industry group Number of establishments Number of persons engaged Number of employees Compensations of employees Operating expenses Value of purchases of goods for sale Gross surplus Sales and other receipts Value added

SMn. SMn. SMn. SMn. S Mn. SMn.

Wholesale 1993 23 302 91 594 67 539 7,006 10.265 146.258 6,479 170.008 14.139

trade 1992 23 160 84 446 60 959 5,351 8.391 139,940 5,816 159.498 11.519

% change +0.6 +8.5 +10.8 +30.9 +22.3 +4.5 +11.4 +6.6 +22.7

Retail trade 1993 57 521 226 132 151 891 16,212 33,643 172.496 14,561 236.912 30.942

1992 60 705 227 073 152 869 14,218 28,734 160,775 13,503 217,229 28.418 1

% change •5.2 -0.4 -0.6 +14.0 +17. 1 +7.3 +7.8 +9. 1 +8.9 cn

Import/export 1993 99X61 506 030 449 0X0 65,496 137,045 1.460.433 91,486 1.754.460 156.385

trade 1992 89 154 428 927 378 241 53,111 111.166 1.332.744 71.538 1,568.560 126.173 l

% change +12.0 +18.0 + 18.7 +23.3 +23.3 +9.6 +27.9 +11.9 +23.9

Restaurants 1993 10X16 220 652 208 504 18.769 16.318 21.125 4.064 60.276 22.823

1992 10 236 205 765 195X13 17,355 15,381 19.773 3.625 56.134 21.121

% change +5.7 +7.2 +6.5 +8. 1 +6. 1 +6.8 +12. 1 +7.4 +8. 1

Hotels/ 1993 1 458 42 699 41 058 5,301 . 6.384 1.836 4.199 17.721 10.450

boarding 1992 1 524 408IX 39 006 4,585 5,957 1.688 3391 15,621 8.884

houses % change -4.3 +4.6 +5.3 + 15.6 +7.2 +8.8 +23.8 + 13.4 + 17.6

Total 1993 192 957 1 087 107 91X072 112.783 203.656 1.802.148 120.790 2.239.378 234.739

1992 184 779 987 02X 826 X88 94.620 169,629 1,654,920 97.X73 2,017.042 196.114

% change +4.4 + 10. 1 +11.0 +19.2 +20. 1 +8.9 +23.4 +11.0 + 19.7

Notes: (1) Figures denoting changes arc derived from unrounded figures.

(2) Individual items may not add up to the corresponding total due to rounding.

(3) Value added is a measure of the contribution of an economic scctor/industry to Hong Kong’s Gross Domestic Product. The definition can be

found in the "Report on 1993 Survey of Wholesale, Retail and Import and Export Trades, Restaurants and Hotels".

6

Two High Court judges appointed *****

The Judiciary announced today (Monday) the appointment of Mr Justice Wally Yeung Chun-kuen and Mr Justice Michael Peter Burrell as judges of the High Court with immediate effect.

They were both District Court judges before their appointment to the High

Court.

Mr Justice Yeung was bom in Hong Kong in 1950. He was educated in the University of Hong Kong and called to the Bar in 1976 in Hong Kong. He joined the Judiciary in 1985 as magistrate. He was appointed a District Court judge in 1987. Mr Justice Yeung is married and has two sons and a daughter.

Mr Justice Burrell was born in England in 1948. He started to practise law as a barrister in England in 1.972. He joined the Hong Kong Judiciary in 1986 as magistrate and became a principal magistrate in 1990. He was appointed as a District Court judge in 1991. Mr Justice Burrell is married and has a son and two daughters.

End/Monday. July 10, 1995

Appointment to the Appeal Panel for public housing tenants

*****

The Secretary for Housing, Mr Dominic S W Wong, announced today (Monday) the appointment of the Chairman and 11 members to the Appeal Panel set up to hear appeals against decisions of the Housing Authority to terminate leases or give notices to quit. The term of appointment is for two years with effect from July 1.

The Chairman is Mr Yung Ching-tat and members include Mr Chan Bing-woon, Mr Chan Mo-pow, Mr Chan To-chai, Mr Chan Wai-chung, Ms Anita Cheng Wai-ching, Mrs Chiu Lai-ching, Mr Warren Chow Yum-wah, Ms Bebe Chu Pui-ying, Ms Ho Chung-tim, Mr Law Chi-yuen and Mr Man Hon-ming.

7

"To ensure that every appeal is handled in a consistent, efficient and impartial manner, a wide cross- section of membership is necessary," Mr Wong said.

"The appointees will provide a good balance of interests and expertise. They include a District Board chairman, a teacher, a technical worker, solicitors, businessmen and public housing tenants."

The appointments will be gazetted on Friday (July 14).

End/Monday, July 10, 1995

New clinic strengthens services in Tuen Mun *****

The public medical and health sector of Hong Kong has gradually become a provider of inexpensive services of high quality, but the ever-changing environment exerts pressure on future reforms, Legislative Councillor Dr Leong Chi-hung said today (Monday).

Speaking at the opening ceremony of the Tuen Mun Wu Hong Clinic, Dr Leong said: "There is an on going process during which new targets were being set up and the original scope of service being reviewed continually.

"Important factors of the ever-changing environment should not be overlooked. These include the aging population, a decrease in the percentage of the proportional working population, continual increase of the medical cost at a faster tempo than the economic growth, and the demanding public who was always expecting advancement in the quality of medical care service," he said.

Dr Leong maintained that enhancing liaison between the public and private sectors, controlling the cost and promoting efficiency of health care services should be the focus on improving existing deficiencies.

"In this connection. I understand that the Department of Health, being responsible for the health services of Hong Kong, has been working actively to improve its services." he said.

8

He noted that in addition to primary health care services, the Department of Health had initiated a number of new programmes including to establish health centres for women aged 45 and above and old people aged 65 and above, and to introduce a new Student Health Service later this year.

Dr Leong stressed that primary health care service needed participation of everyone. The Department of Health had successfully taken its first step as the District Health System and the patient's liaison group piloted in Kwun Tong had achieved fairly good results.

Also speaking at the ceremony, the acting Director of Health, Dr Paul Saw said the Department of Health had pledged to provide better service since 1992.

He said: "Tucn Mun Wu Hong Clinic is in the Performance Pledge scheme."

He pointed out that the design of the clinic was very client-centred. With the assistance of the Architectural Services Department, a footbridge connecting the clinic to the nearby Light Rail Transit station and public estates had been built to facilitate patients' access.

Dr Saw believed the department would be able to further improve its primary' health services with the community's participation and support.

Tucn Mun Wu Hong Clinic is the third government clinic in Tucn Mun District. The clinic has a total gross floor area of about 3.000 square-meters and provides general out-patient and maternal and child health services to local residents.

End/Monday. July 10. 1995

Removal ofHAB's Trust f unds Section *****

The Home Affairs Branch's Trust f unds. Temples and Cemeteries Section will be moved to Rooms 2101-2102, 21st floor, l ung Wai Commercial Building. 109-111 Gloucester Road. Wan Chai next Monday (July 17).

Members of the public who wish to enquire about related matters can telephone the Trust Funds on 2519 9141. Chinese I cmples Committee on 2519 9133 and the Chinese Permanent Cemeteries Office on 2519 9120.

End/Monday. July 10. 1995

9

Container traffic continues to grow

*****

Hong Kong's container port continues to set new records. Official figures for the first quarter of 1995 show that the port handled 2.68 million twenty-foot equivalent unit (TEUs) in the first quarter of 1995. This was a 16.2 percent increase over the same period last year.

The throughput figures for March showed a massive 21.5 percent increase to total 998.000 TEUs for the month.

Unofficial figures for the eight container terminals (this does not include midstream and river trade traffic) show the 16 per cent increase in throughput continuing for the first five months of this year. The eight terminals moved 3.2 million TEUs over their wharves up to the end of May just 16 per cent more than they handled in the first five months of 1994.

If the 16 per cent increase continues throughout the year Hong Kong should handle more than 12.8 million TEUs in 1995.

Although improve efficiency has enabled the existing eight containers terminals to handle the growth so far, the increase throughput underlined the urgently for containers terminals 9. 10 & 11 to come into operation as soon as possible.

End/Monday, July 10. 1995

Keep dogs under proper control

*****

The Agriculture and Fisheries Department (AFD) today (Monday) reminded dog owners to keep their dogs under proper control to prevent them from attacking people. Members of the public are also reminded to take proper measures to protect children from attacks.

The advice came from the AFD's Senior Veterinary Officer, Dr Liu Kwei-kin, following a number of dog bite incidents over the weekend.

10

Dr Liu said: "Dog owners should avoid selecting large aggressive breeds and prevent their dogs from wandering from home.

"They should muzzle their dog if it is aggressive and put it on a leash where appropriate."

On the part of the public, they should always remember that a dog can bite and do not leave children with dogs unless an adult is present.

"Do not let children approach feeding dogs and bitches with puppies and do not provoke a dog by teasing it or making sudden movement or loud noise," Dr Liu said.

Following are guidelines to dog owners and advice to public:

Responsibilities of dog owners

* Avoid large aggressive breeds

* Socialise with your dog from an early stage

* Provide tender loving care and training

* Prevent your dog from wandering away from home. Put it on a leash

* Muzzle your dog if it is aggressive

* Desex the animal to prevent aggression

* Take particular care when you have visitors at home

* Vaccinate your dog to prevent rabies

Do not abandon your dog. Take it to the government kennels or the RSPCA

Advice to the Public

* Always remember a dog can bite

* Do not leave children with dogs unless an adult is present

* Prevent children from approaching feeding dogs and bitches with puppies

* Do not provoke a dog by teasing it or making sudden movement or loud noise

* Pay extra attention if you arc new to the dog

* I feed the dog owner’s advice on how to approach his dogs

If threaten by dogs, stay calm. Back off quietly and steadily. Never run

* Report any dog bite to the police and seek treatment

* Identify the biting dog and provide information to facilitate investigation

End/Monday, July 10. 1995

11

Third quarter rates due on July 31 *****

Rates for the third quarter of this year are payable on or before July 31, a spokesman for the Treasury said.

Payment can be made using the Payment by Phone Service or by post addressed to the Director of Accounting Services, P O Box 8000, GPO, Hong Kong, or in person at any of the following offices:

* The Treasury Headquarters Collection and Payment Office, Immigration Tower, first floor, 7 Gloucester Road, Wan Chai, Hong Kong;

* The Central Sub-Treasury, Central Government Offices (West Wing), 11 Ice House Street, Hong Kong;

* The North Point Sub-Treasury, Max Share Centre, first floor, 373 King's Road, North Point, Hong Kong;

* The Sai Wan Ho Sub-Treasury, Eastern Law Courts Building, ground floor, 29 Tai On Street, Sai Wan Ho, Hong Kong;

* The Yau Ma Tei Sub-Treasury, Kowloon Government Offices, fourth Floor, 405 Nathan Road, Kowloon;

* The Kowloon City Sub-Treasury, Man Sang Commercial Building, first floor, 348-352 Prince Edward Road, Kowloon;

* The District Office at Sai Kung, Sha Tin, Tai Po, North, Yuen Long, Tuen Mun, Tsuen Wan or Kwai Tsing.

The spokesman said ratepayers who had not received their demand notes should bring along those for any previous quarter to any of the Treasury collection offices.

Duplicate demand notes will be issued to them, he said.

If they cannot produce demand notes for any previous quarter, they should enquire of the Rates Accounts Section, Rating and Valuation Department, Hennessy Centre, 17th floor, 500 Hennessy Road, Causeway Bay, Hong Kong.

12

Non-receipt of the demand notes does not alter the requirement that the rates must be paid by July 31 and unless so paid, ratepayers may be subject to a surcharge of five per cent under Section 22 of the Rating Ordinance.

A further surcharge of 10 per cent may be levied on the outstanding amount (including the five per cent surcharge) which remains unpaid six months after the due date.

Ratepayers who have submitted a valid direct debit authorisation should note that if the wording "Payment To Be Made By Autopay" is shown, payment will be made by direct debit to their bank accounts on July 31.

They should then ensure that their bank accounts contain the necessary funds on that date.

If the above wording is not shown, they should pay according to the instructions as set out in the demand notes.

To save queuing time, the spokesman urged ratepayers to use the Payment by Phone Service, or pay by post using cheques or cashier orders, or by early personal attendance at any of the collection offices.

!’■ . .

"However, the most convenient payment method is autopay," said- the spokesman.

Application forms for autopay are obtainable from Treasury collection offices, District Offices and all major banks in Hong Kong or by telephoning 2845 8866.

For additional information regarding the Payment by Phone Service, please call 170 222 329.

End/Monday, July 10, 1995

13

Water storage figure ♦ ♦ ♦ ♦ *

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 69.4 per cent of capacity or 450.530 million cubic metres.

This time last year the reservoirs contained 434.892 million cubic metres of water, representing 74.2 per cent of capacity.

End/Monday, July 10, 1995

Fresh water cut in Sheung Shui

*****

Fresh water supply to some premises in Sheung Shui will be temporarily suspended from 11 pm on Thursday (July 13) to 6 am the following day to facilitate water mains leakage detection.

The affected areas will include Pak Wo Road, So Kwun Po Road, Po Kin Road, Kat Cheung Crescent, Kai Leng, Ng Uk Tsuen, Chong Tsin Leng and Po Leng Au.

End/Monday, July 10, 1995

Hong Kong Monetary Authority money market operations

*****

Time Cumulative change

$ million (hours) (Smillion)

Opening balance in the account 1,572 0930 +936

Closing balance in the account 1,528 1000 +936

Change attributable to : 1100 +942

Money market activity +946 1200 +949

LAF today -990 1500 +949

1600 +946

LAF rate 4.25% bid/6.25% offer TWI 119.0 *+0.3* 10.7.95

14

Hong Kong Monetary Authority

EF bills EF notes । ’ *■ ■

Terms Yield Term Issue Cbupon Price Yield .

1 week 5.23 2 years 2705 6.40 101.49 ’ • :: •• ':ia 5.61

1 month 5.27 3 years 3804 6.90 102.78 5.89

3 months 5.36 5 years 5006 6.60 100.54 6.57

6 months 5.39 5 years M501 7.90 103.89 7.06

12 months 5.45 •s> i

Total turnover of EF bills and notes - $ 17,142 million

Closed July 10,1995

End/Monday, July 10, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Tuesday, July 11,1995

Contents Page No.

Transcript of the Governor's media session.............................. 1

March 1995 employment and vacancies statistics released................. 2

External trade figures by country and commodity for May 95.............. 6

Sewage charge and trade effluent surcharge widely accepted............. 16

Contract awarded for the new airport................................... 16

Law Draftsman to visit Macau........................................... 17

Young people invited to undertake voluntary services................... 17

45,000 parents show their appreciation to teachers................. 18

Nominations from nine specified arts interests invited................. 20

Hong Kong Monetary Authority tender results............................ 21

Hong Kong Monetary Authority money market operations................... 22

1

Transcript of the Governor’s media session ♦ ♦ ♦ ♦ ♦

The following is a transcript of the media session by the Governor, the Rt Hon Christopher Patten, after officiating at the Hong Kong Institute of Education Graduation ceremony this (Tuesday) afternoon:

,7 ' .

Governor: I’m delighted the Hong Kong Institute of Education has got up to such a flying start. It's got a very important role in education in Hong Kong, training the next generation of teachers and therefore in looking after the future of our community.

Question: Governor, one vice-director of the NCNA yesterday admitted that the Sino-British sides are discussing about the transition of civil servants especially the mechanism of the Chinese officials with the senior government civil servant. How can the Hong Kong Government assist the Chinese for the formation of the team designate.

Governor: We are discussing transition issues like that in the Joint Liaison Group.

Question: How can that mechanism be worked out?

Governor: That’s the matter we are discussing in the JLG.

Question: There’s an interview in the Independent in London yesterday in which you said you felt that some officials were making war between you and them. You are quoted as saying that....

Governor: I haven’t seen the interview. I gave it. But I haven’t seen it.

Question: Mr Ambassador Zhao, after the JLG plenary criticising the Hong Kong Government or the British side table the MPF Bill ... and also there’s going to be an enormous amendment to the existing Hong Kong laws and the Chinese side felt quite dissatisfied. How can that be resolved?

Governor: That’s a cross we all have to bear.

Question: Are you satisfied with the JLG results?

I

2

Governor: You remember when you were asking me about what to expect of it in advance that I wasn't hugely optimistic that it would make great progress. I have been pleased by other developments in June particularly the agreements on the Court of Final Appeal made earlier and agreements on airport financing and the cargo franchises. But I didn't anticipate we got a great deal more in the JLG. I am sorry we didn't achieve more. I hope that the expert groups will manage to make more progress in the coming weeks and months, so that the next JLG will be able to report much more substantial progress. There were useful discussions but no great leaps forward. One or two useful things agreed not least in the localisation of laws area. But nothing very dramatic.

Question: You are saying that Chinese officials are trying to isolate you....

Governor: I don't recall saying that. . I remember answering questions about that, not least from yourself. But I don't think I said anything particularly dramatic in that interview ...

Question: The Independent report said that you are isolated from Chinese officials ... they don't want to talk to you...

Governor: I did answer that question. Thanks very much indeed.

End/Tuesday, July 11, 1995

March 1995 employment and vacancies statistics released ♦ ♦ ♦ ♦ ♦

There was continued growth in employment in all major service sectors between March 1994 and March 1995, but employment in the manufacturing sector declined further, the figures released today, (Tuesday) by the Census and Statistics Department showed.

Meanwhile, employment at construction sites registered a large increase.

Vacancies in the manufacturing sector continued to fall in March 1995 over a year earlier, while those at construction sites registered a substantial increase.

Over the same period, vacancies in the various service sectors recorded decreases of different magnitudes. Nevertheless, there were still over 60,000 vacancies for all major sectors taken together.

3

In terms of the number of persons engaged, the wholesale, retail and import/export trades, restaurants and hotels sector was the largest, employing 1,015,100 persons in March 1995.

This was followed by .the manufacturing sector, with an employment at 395,400; the financing, insurance, real estate and business services sector, at 361,300; the community, social and personal services sector, at 297,200; the transport, storage and communication sector, at 164,600; and the construction sites (for manual workers only), at 64,100.

In terms of growth rate, employment at construction sites recorded the fastest increase, by 10.6% in March 1995 over March 1994; followed by the transport, storage and communication sector, by 4.9%; the financing, insurance, real estate and business services sector and the community, social and personal services sector, both by 3.4%; and the wholesale, retail and import/export trades, restaurants and hotels sector, by 1.7%. On the other hand, as the structural shift in manpower resources continued, employment in the manufacturing sector fell by 13.3%.

The respective employment figures arc shown in greater detail in the following table:

Persons engaged (employment) Percentage change

Selected major sector Mar 94 Dec 94 Man25. Mar 95 over Man24 Mar 95 over Dec 94

Manufacturing 455,900 423,000 395,400 -13.3 -6.5

Construction sites (manual workers only) 58,000 63,100 64,100 + 10.6 +1.6

Wholesale, retail and importexport trades, restaurants and hotels 997,800 1.021,900 1.015.100 + 1.7 .-0.7

Transport, storage and communication 157,000 164,200 164,600 +4.9 +0.3

4

Financing, 349.400 369,600 361,300 +3.4 -2.2

insurance, real estate and business services

Community, 287,400 299,300 297,200 +3.4 -0.7

social and personal services

Vacancies at construction sites recorded a three-fold increase in March 1995 over a year earlier. The marked increases in both employment and vacancies at construction sites reflected the heavy demand for construction workers mainly in the new airport projects.

However, vacancies recorded decreases notably in the manufacturing sector and in the wholesale, retail and import/export trades, restaurants and hotels sector; Nevertheless, the decline was due in part to a high base of comparison in March 1994, when vacancies situation was particularly acute.

The respective vacancies figures are shown in greater detail in the following table:

Number of reported vacancies Pcrcenlage change

Selected Mar 95 Mar 95

major sector Mar 94 Dec 94 Mar 95 over Mar 94 over Dec 94

Manufacturing 14.890 10.520 9.100 -38.9 -13.5

Construction sites (manual workers only) 440 860 1.860 +318.5 + 115.5

Wholesale, retail and import/export trades, restaurants and hotels 42.100 29,650 27.810 -33.9 -6.2

5

Transport, storage and communication 4,740 3,260 3,780 -20.3 +16.0

Financing, insurance, real estate and business services 14,550 10,410 10,600 -27.1 +1.9

Community, 10,250 9,700 9,120 -11.1 -6.0

social and personal services

The above statistics for selected major sectors in March 1995 were derived from the Quarterly Survey of Employment and Vacancies and the Quarterly Employment Survey of Construction Sites conducted by the Department.

In the former survey, some economic activities (e.g. those where selfemployment are predominant, such as taxi operators, hawkers and freelance authors) are not covered and hence the respective employment and vacancies figures relate only to those selected industries included in the survey.

Detailed breakdowns of the above statistics are available from the Quarterly Report of Employment, Vacancies and Payroll Statistics, March 1995 and the Quarterly Report of Employment and Vacancies at Construction Sites, March 1995. They will be available at $44 per copy and $20 per copy respectively at the Government Publications Centre, Queensway Government Offices, low block. Ground Floor, 66 Queensway, Hong Kong and at the Publications Section of the Census and Statistics Department on the 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

End/Tuesday, July 11, 1995

6

External trade figures by country and commodity for May 95 * * * * *

The Census and Statistics Department today (Tuesday) released detailed statistics on external trade with breakdown by country/territory and commodity for May 1995.

The value of re-exports, continued to increase notably, by 27% over a year earlier to $96.6 billion in May 1995.

Comparing May 1995 with May 1994, the value of re-exports to all of the main destinations showed increases of various magnitudes: Singapore (+51%), Japan (+39%), France (+38%), Taiwan (+34%), China (+31%), the Netherlands (+29%), the United Kingdom (+25%), the United States (+20%), Germany (+17%) and South Korea (+12%).

Changes in the value of Hong Kong’s re-exports to 10 main destinations are shown in Table 1.

The value of re-exports in the first five months of 1995 was $421.2 billion, 21% higher than that in the same period in 1994.

Comparing the first five months of 1995 with the same period in 1994, the value of re-exports to all main destinations showed increases of various magnitudes: Singapore (+33%), Japan (+29%), France (+25%), Taiwan (+24%), China (+23%), the Netherlands (+21%), the United States (+18%), South Korea (+15%), the United Kingdom (+11%) and Germany (+6.0%).

Table 2 shows changes in the value of re-exports of 10 principal commodity divisions.

Comparing the first five months of 1995 with the same period in 1994, increases of various magnitudes were recorded in the value of re-exports of most principal commodity divisions.

More notable increases were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $12.9 billion or 44%); telecommunications and sound recording and reproducing apparatus and equipment (by $10.3 billion or 30%); office machines and automatic data processing machines (by $8.6 billion or 65%); miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $8.5 billion or 22%); textiles (by $7.5 billion or 24%); and photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $4.1 billion or 27%).

7

Over the same period, re-exports of clothing fell by $648 million, representing a small decrease of 2.0% over a year earlier.

The value of domestic exports in May 1995, at $20.0 billion, increased notably by 13% over a year earlier.

Comparing May 1995 with May 1994, the value of domestic exports to all of the main destinations showed increases of various magnitudes: Taiwan (+46%), Japan (+32%), the Netherlands (+29%). China (+15%), the United Kingdom (+12%), the Philippines (+11%). Germany (+9.5%), Canada (+5.2%), the United States (+5.1%) and Singapore (+2.9%).

Changes in the value of domestic exports to 10 main destinations are shown in Table 3.

Comparing the first five months of 1995 with the same period in 1994, the value of domestic exports to most main destinations showed increases of various magnitudes: Japan (+28%), Taiwan (+26%), the Netherlands (+15%), the Philippines (+14%), Canada (+9.7%), Singapore (+9.5%), China (+8.8%), the United States (+7.4%) and the United Kingdom (+5.6%).

However, the value of domestic exports to Germany decreased marginally, by 0.5%.

Taking all destinations together, the value of domestic exports in the first five months of 1995, at $87.5 billion, increased markedly, by 11% over the same period in 1994,

Table 4 shows changes in the value of domestic exports of 10 principal commodity divisions.

Comparing the first five months of 1995 with the same period in 1994, increases in the value of domestic exports were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $2.2 billion or 24%); clothing (by $2.0 billion or 9.0%); office machines and automatic data processing machines (by $1.5 billion or 23%); photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $973 million or 17%); and plastics in primary forms (by $443 million or 30%).

8

Over the same period, decreases in the value of domestic exports were recorded for telecommunications and sound recording and reproducing apparatus and equipment (by $302 million or 6.7%); and machinery specialised for particular industries (by $ 152 million or 12%).

The value of imports continued to increase substantially, by 28% over a year earlier to $133.4 billion in May 1995.

Changes in the value of imports from 10 main suppliers are shown in Table 5.

Comparing May 1995 with May 1994, the value of imports from all main suppliers showed increases of various magnitudes: the United States (+62%), Malaysia (+45%), South Korea (+41%), the United Kingdom (+37%), Germany (+33%), Taiwan (+27%), Japan (+25%), China (+21%), Singapore (+12%) and France (+11%).

'Comparing the first five months of 1995 with the same period in 1994, the value of imports from all main suppliers showed increases of various magnitudes: France (+85%), Malaysia (+43%), Singapore (+39%), the United States (+38%), South Korea (+34%), Taiwan (+27%), Germany (+24%), Japan (+23%), China (+21%) and the United Kingdom (+20%).

The value of imports in the first five months of 1995, at $582.4 billion, increased markedly, by 26% over the same period in 1994.

Table 6 shows changes in the value of imports of 10 principal commodity divisions.

Comparing the first five months of 1995 with the same period in 1994, increases were recorded in the value of imports of all principal commodity divisions.

More notable increases were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $19.8 billion or 40%); telecommunications and sound recording and reproducing apparatus and equipment (by $11.7 billion or 27%); textiles (by $8.8 billion or 19%); office machines and automatic data processing machines (by $8.7 billion or 52%); miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $6.8 billion or 22%); photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $5.0 billion or 25%); and general industrial machinery and equipment, and machine parts (by $3.6 billion or 23%).

All the trade statistics described here are measured at current prices and no account has been taken of changes in prices between the periods of comparison.

9

A separate analysis of the volume and price movements of external trade for May 1995 will be released in early August 1995.

Detailed trade statistics analysed by commodity and by country/ territory are published in trade statistics reports.

The May 1995 issue of the "Hong Kong External Trade" with detailed analyses on the performance of Hong Kong’s external trade in May 1995 will be available for sale at $122 per copy around July 21.

The report can be purchased at either the Government Publications Centre, ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong, or the Publications Section of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Enquiries regarding regular subscription to this report may be directed to the Publications (Sales) Office, 28th Floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong on 2598 8194 and enquiries on trade statistics to the Census and Statistics Department on 2582 4915.

10

TABLE 1 : RE-EXPORTS TO TEN MAIN DESTINATIONS

DESTINATION MAY 1995 (HKD Mn.) MAY 95 OVER MAY 94 (% CHANGE) JAN-MAY 1995 (HKD Mn.) JAN-MAY 95 OVER JAN-MAY 94 (% CHANGE)

CHINA 35,674 + 31.2 151,460 + 23.0

UNITED STATES 19,838 + 19.9 84,294 + 18.1

JAPAN 5,238 ♦ 38.8 25,030 + 28.7

GERMANY 3,703 * 17.2 16,859 + 6.0

UNITED KINGDOM 2,583 + 24.8 10,953 + 10.8

TAIWAN 2,566 + 33.8 10,940 + 24.0

SINGAPORE 2,376 + 50.8 9,835 + 33.3

SOUTH KOREA 1,692 + 11.6 7,733 + 15.4

FRANCE 1,516 + 38.0 6,493 + 25.1

NETHERLANDS 1,361 + 28.5 6,323 + 20.8

11

TABLE 2. : RE-EXPORTS CF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION MAY 1995 (HKD Mn.) MAY 95 OVER MAY 94 (% CHANGE) JAN-MAY 1995 (HKD Mn.) JAN-MAY 95 OVER JAN-MAY 94 (% CHANGE)

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 11,440 + 24.4 • 47,760 + 21.5

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 8,829 + 19.6 44,948 + 29.7

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL . PARIS THEREOF 10,126 + 52.1 42,551 + 43.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 8,979 + 16.6 38,102 + 24.4

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 6,807 + 3.9 32,456 - 2.0

FOOTWEAR 4,908 ' + 12.7 23,551 + 14.1

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES • 4,933 + 77.1 21,820 + 65.1

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 4,463 + 42.8 19,140 + 27.1

TRAVEL GOODS, HANDBAGS AND SIMILAR. CONTAINERS 3,265 ' + 21.7 13,849 + 18.9

GENERAL INDUSTRIAL MACHINERY AND EQUIPMENT, AND MACHINE PARTS 2,959 + 12.0 12,477 + 16.6

12

TABLE 3 : DOMESTIC EXPORTS TO TEN MAIN DESTINATION’S

DESTINATION MAY 1995 (HKD Mn.) MAY 95 OVER MAY 94 (% CHANGE) JAN-MAY 1995 (HKD Mn.) JAN-MAY 95 OVER JAN-MAY 94 (% CHANGE)

CHINA 6,113 + 14.5 24,960 * 8.8

UNITED STATES 4,952 + 5.1 21,358 + 7.4

SINGAPORE 1,004 + 2.9 5,061 ♦ 9.5

JAPAN 1,035 + 31.7 4,938 + 27.8

GERMANY 1,023 + 9.5 4,339 - 0.5

UNITED KINGDOM 858 + 12.5 3,737 ♦ 5.6

TAIWAN 665 + 45.5 2,956 + 26.3

NETHERLANDS 414 + 28.7 1,872 + 15.0

CANADA 344 + 5.2 1,562 - + 9.7

PHILIPPINES 255 + 11.2 1,285 + 13.7

13

TABLE 4 : DOMESTIC EXPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION MAY 1995 (HKD Mn.) MAY 95 OVER MAY 94 (?6 CHANGE) JAN-MAY 1995 (HKD Mn.) JAN-MAY 95 OVER JAN-MAY 94 (% CHANGE)

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 5,703 + 7.9 24,318 + 9.0

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 2,727 + 28.4 11,672 + 23.9

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 1,471 + 12.0 7,914 + 23.2

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES) 1,739 + 12.2 7,708 + 3.8

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS .1,522 + 17.8 6,731 + 16.9

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 1,369 - 1.8 5,745 - 2.5

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 881 - 15.0 4,240 - 6.7

PLASTICS IN PRIMARY FORMS 418 + 25.6 1,911 + 30.1

MANUFACTURES OF METALS 481 + 25.8 1,859 + 3.5

MACHINERY SPECIALIZED FOR PARTICULAR INDUSTRIES 270 - 5.5 1,168 - 11.5

14

TABLE 5 : IMPORTS FROM TEN MAIN SUPPLIERS

MAY .MAY 95 JAN-MAY JAN-NAY 95

SUPPLIER 1995 OVER 1995 OVER

- * . A . MAY 94 JAN-NAY 94

(HKD Mn.) (% CHANGE) (HKD Mn.) CHANGE)

CHINA 46,202 + 21.4 202,774 * 20.5 .;i

JAPAN 18,719 + 25.3 89,907 * 22.5

TAIWAN 12,546 « + 27.4 51,629 + 27.1

UNITED STATES 11,670 + 61.9 44,706 + 38.1

SINGAPORE 6,662 ♦ 11.6 30,758 + 38.8

SOUTH KOREA 7,630 + 41.4 30,476 * 34.4

GERMANY 3,199 + 33.2 13,255 + 23.9

FRANCE 1,426 + 11.3 11,899 + 84.6

UNITED KINGDOM 2,664 + 36.5 11,385 + 20.2 ?

MALAYSIA 2,540 + 44.9 * 11,115 + 43.2

15

TABLE 6 : IMPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION MAY 1995 (HKD Mn.) .MAY 95 OVER MAY 94 (% CHANGE) CAN-MAY 1995 (HKD Mn.) CAN-MAY 95 OVER CAN-MAY 94 (% CHANGE)

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 16,060 + 40.7 69,623 + 39.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS- 13,364 + 10.5 55,625 + 18.7

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 11,343 + 22.9 55,307 + 26.9

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 8,982 + 28.2 37,419 + 22.2

ARTICLES OF APPAREL AND CLOTHING

ACCESSORIES 7,686 + 6.7 35,223 + 3.4

OFFICE MACHINES AND AUTOMATIC DATA

PROCESSING MACHINES 5,678 + 43.0 25,496 + 51.8

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 5,565 ’ + 31.4 25,248 + 24.8

FOOTWEAR 4,394 + 14.2 21,055 + 14.9

ROAD VEHICLES 4,237 . ♦ 2.3 20,000 + 5.6

GENERAL INDUSTRIAL MACHINERY AND

EQUIPMENT, AND MACHINE PARTS 4,321 + 16.4 19,238 + 22.8

End/Tuesday, July 11, 1995

16

Sewage charge and trade effluent surcharge widely accepted *****

In response to press enquiries, a Government spokesman said in view of the concerns of the restaurant trade, the Administration had had discussions with their representatives on four occasions, and had agreed that the trade could commission a survey to recheck the Chemical Oxygen Demand (COD) value and discharge factor.

’’The Administration would be prepared to accept the result of the survey if the survey is done in a scientific, unbiased and independent manner,” the spokesman said.

He said: ’’The Administration has specified a number of conditions and the restaurant representatives have engaged a consultancy firm to act as their adviser. The Government is still waiting for the trade representatives to come back with their proposal on how to carry out the survey."

The spokesman said the Sewage Charging Scheme, including the Trade Effluent Surcharge (TES), is based on Polluter Pays Principle. They are modest, fair and reasonable and are accepted by the community at large. Of the customers who have received the first batch of sewage charge bills, 99.9 per cent have already paid the sewage charge due and 94 per cent have paid the TES, he said.

The spokesman added that the Administration had maintained an ongoing constructive dialogue with the trade representatives on the issue.

This is the appropriate forum to discuss the trade's concerns and the credible data to be provided by the trade to substantiate their claims, he said.

End/Tuesday, July 11, 1995

Contract awarded for the new airport *****

The Secretary for the Treasury, on the advice of the Central Tender Board, has approved the award of an Airport Core Programme (ACP) contract for the supply and installation of a Voice Recording System for the new airport at Chek Lap Kok.

The contract, valued at $7.9 million, has been awarded by the Civil Aviation Department to Swire Engineering Limited of Hong Kong.

17

The company will be responsible for the supply, installation and commissioning of the Voice Recording System at the new airport to facilitate continuous recording of all communications among pilots, air traffic control and telecommunications operators over radio communication links and telephone lines.

Work will start later this month for completion in February 1997.

End/Tuesday, July 11, 1995

Law Draftsman to visit Macau *****

The acting Law Draftsman, Mr Tony Yen, will pay a one-day visit to Macau tomorrow (Wednesday) at the invitation of the Law Translation Office of the Macau Government.

Mr Yen, who will be leading another four lawyers from the Legal Department's Law Drafting Division, will meet their counterparts in Macau and share experience in the translation into Chinese the legislation of Macau and Hong Kong.

End/Tuesday, July 11, 1995

Young people invited to undertake voluntary services

*****

The Director of Social Welfare, Mr Ian Strachan, announced today (Tuesday) that 14 local youth volunteers selected for their remarkable volunteering efforts would represent Hong Kong on an exchange tour to Singapore and Malaysia at the end of this month to share their experiences with their overseas counterparts.

At the officiating ceremony of the prize-giving day at Lok Sin Tong Yu Kan Hing School, he told students that volunteering was an important means through which young people could express their concerns and be involved in making Hong Kong a better place.

"The Social Welfare Department has been organising (he Opportunities for Youth Scheme for 20 years. The objectives of the scheme arc to provide opportunities and funds for young people to realise their planned projects which are conducive to their personal and social development and to benefit the community." he said.

18

Mr Strachan said awards were also presented to outstanding volunteers every year and that an Overseas Exchange Programme for Outstanding Youth Volunteers was introduced two years ago.

He added that as Hong Kong entered a period of significant transition, it was particularly important that young people were given the support and opportunities to prepare them to be responsible members of society.

"Young people can show their care by participating in a wide range of volunteer services, such as visiting old people, making friends with young probationers, helping children from underprivileged families in their home work and organising activities for ex-mental patients," he said.

End/Tuesday, July 11, 1995

45,000 parents show their appreciation to teachers *****

About 45,000 parents have shown their appreciation to teachers of their children in the "Parents Also Appreciate Teachers" drive.

Parents participating in the campaign were invited to write a goodwill message which was printed on a specially designed thankyou card and sent to the teacher whom they appreciate. The drive was launched last month in response to the Governor’s call to improve teachers’ image and the Education Department's "Respect Our Teacher" Campaign.

The cards have been sent to 767 schools. The 15 schools receiving the largest number of cards will be awarded in a recognition ceremony on Thursday (July 13).

The list of schools having received the largest number of cards is as follows:

Secondary Schools

* Helen Liang Memorial Secondary School (Sha Tin)

Po Leung Kuk 1984 Prevocational School

* San Wui Commercial Society Chan Pak Sha School

South Tuen Mun Government Secondary School

* Wellington College, Kowloon

19

Primary Schools

* Fung Kai Liu Yun Sum Memorial School AM

* Island Road Government Primary School PM

* Queen Elizabeth School Old Students’ Association Primary School PM

* Shek Lei Catholic Primary School AM

* Tak Nga Primary School

Kindsigarlsns

* Ho Tak Kindergarten

* Munsang College (Kindergarten Section)

St Mathias' Church Chiu Chun Kindergarten

Tak Shun Private Kindergarten

The Salvation Army Ap Lei Chau Kindergarten

The "Parents Also Appreciate Teachers" drive is jointly organised by the Education Department and Sing Tao Daily News and sponsored by Grandtel International Limited.

Attention News Editors:

A press conference and a recognition ceremony to mark the close of the "Parents Also Appreciate Teachers" drive will be held at the Camomile Room, Kowloon Shangri-la Hotel, 64 Mody Road, Tsim Sha Tsui East, Kowloon at 2 pm on Thursday (July 13).

Assistant Director of Education (Services), Mr Tse Kum-shing; Chairman of the Committee on Home-School Co-operation. Mr Tik Chi-yuen; Deputy Executive Chief Editor of Sing Tao Daily, Mr Wong Yan-wan; and Managing Director of Grandtel International Limited, Mr Vincent Tsang, will officiate at the ceremony.

Media representatives are invited to cover the press conference and the recognition ceremony.

End/Tuesday, July 11, 1995

20

Nominations from nine specified arts interests invited * * * ♦ ♦

Applications are now invited for consideration for specification by the Governor as one of the nine specified organisations or groups of organisations to be represented in the Hong Kong Arts Development Council (HKADC).

Application should include those documents and evidence which are relevant to the criteria as set out in paragraph 5 of the "Guidelines for Representative Arts Organisations and for their nominees for membership of the Council" issued by the Recreation and Culture Branch on May 8, 1995.

A spokesman for the Recreation and Culture Branch said today (Tuesday) that the Hong Kong Arts Development Council Ordinance was enacted by the Legislative Council on May 3 and the HKADC has commenced operation as a statutory body since June 1, 1995.

Under the Ordinance, the Council shall consist of a chairman, a vice-chairman, 16 other non-official members each of whom shall be appointed by the Governor, and four ex-officio members. The 16 non-official members may include up to nine persons nominated by arts organisations for consideration for appointment by the Governor.

The Ordinance also enables the Governor to specify, by notice in the Gazette, up to nine organisations or groups of organisations each of which shall be representative of nine specified categories of arts interests, namely: literary arts, music, dance, drama, visual arts, film arts, arts administration, arts education and arts criticism.

"The Council's second term of office will be for two years commencing from January 1, 1996. At that time, it is intended to include up to nine members who will have been nominated by each of the up to nine specified organisations," the spokesman said.

Enquiries on matters relating to specification can be directed to Assistant Secretary for Recreation and Culture Mr Raymond Tam on tel 2594 5614 (fax 2802 4893) or to Executive Officer Mr Benedict Wong (Culture) on tel 2594 5622.

Applications should be submitted to the Secretary for Recreation and Culture (Attn: Mr Benedict Wong), Recreation and Culture Branch, 40th floor. Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong, on or before August 31. 1995.

End/Tuesday. July 11. 1995

21

Hong Kong Monetary Authority tender results *****

Tender date 11 Jul 95 11 Jul 95

Paper on offer ’ EF bills EF bills

Issue number Q528 Y591

Amount applied HK$9,780 MN HK$4,710MN

Amount allotted HK$ 1,500 MN HKS500 MN

Average yield accepted 5.34 PCT 5.42 PCT

Highest yield accepted 5.35 PCT 5.43 PCT

Pro rata ratio About 12 PCT About 23 PCT

Average tender yield 5.36 PCT 5.44 PCT

Hong Kong Monetary Authority

Tenders to be held in the week beginning Jul 17, 1995

Tender date 18 Jul 95 18 Jul 95

Paper on offer EF bills EF bills

Issue number Q529 H569

Issue date 19 Jul 95 19 Jul 95

Maturity date 18 Oct 95 17 Jan 96

Tenor 91 days 182 days

Amount on offer HK$ 1,500+300 MN IIKS800+160 MN

End/Tuesday, July 11. 1995

22

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smilljon)

Opening balance in the account 1,528 0930 +990

Closing balance in the account 1,565 1000 +990

Change attributable to : 1100 +985

Money market activity +988 1200 +988

LAF today -951 1500 +988

1600 +988

LAF rate 4.25% bid/6.25% offer TWI 119.0 *+0.0* 11.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.22 2 years 2705 6.40 101.40 5.66

1 month 5.30 3 years 3804 6.90 102.61 5.96

3 months 5.35 5 years 5006 6.60 100.40 6.61

6 months 12 months 5.39 5.43 5 years M501 7.90 103.73 7.10

Total turnover of EF bills and notes - $ 10,811 million

Closed July 11,1995

End/Tuesday, July 11, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Wednesday, July 12,1995

Contents Page No,

Statement on the Sex Discrimination Ordinance............................ 1

Charges for disposal of polluting waste approved......................... 1

Fees at public cargo working areas to be revised......................... 3

Destruction of 20,000 pirated music CDs.................................. 3

Quality Education........................................................ 5

Air Quality Report for June.............................................. 5

New Peak Post Office..................................................... 7

Two NT Lots to let....................................................... 7

Hong Kong Monetary Authority money market operations..................... 8

1

Statement on the Sex Discrimination Ordinance ♦ ♦ ♦ ♦ ♦

Two amendments to the Sex Discrimination Bill passed by the Legislative Council on June 29 were inadvertently omitted from the text of the Sex Discrimination Ordinance published in the Government Gazette on July 7.

Commenting on the incident, a government spokesman said today (Wednesday) that the omissions were caused by an unfortunate clerical error.

’’Legal advice has been obtained and action is now in hand to seek the Governor's assent to the complete text of the Bill passed by LegCo on June 29.

"We shall arrange for this to be gazetted as soon as the Governor’s assent has been obtained”, the spokesman said.

’’The Administration will work together with the LegCo Secretariat to review and tighten up the administrative arrangements for the gazetting of Bills passed by LegCo in order to prevent similar incidents occurring in the future,” he added.

End/Wednesday, July 12, 1995

Charges for disposal of polluting waste approved ♦ ♦ ♦ ♦ *

The Govemor-in-Council has approved the charges payable and the procedures for the disposal of wastes containing oil or noxious chemicals from ocean-going ships at the Chemical Waste Treatment Centre, a Government spokesman said today (Wednesday).

The Merchant Shipping (Prevention and Control of Pollution)(Charges for Discharge of Polluting Waste) Regulation 1995 which prescribes the charges and procedures will take effect on August 1, 1995.

Under the International Convention for the Prevention of Pollution from Ships 1973 as amended by the 1978 Protocol (MARPOL Convention), ships are restricted from discharging wastes containing oil or noxious chemicals (MARPOL wastes) intb the sea.

Administrations are required to ensure that adequate reception facilities are available for the disposal of MARPOL wastes.

2

Hong Kong's Chemical Waste Treatment Centre has provided the reception service since April 1993.

To promote the pollution prevention objective, ocean-going ships are currently disposing of MARPOL wastes through the centre free of charge.

"The initial free service has meet the objective. In keeping with the polluter pays principle, it is appropriate for ship operators to contribute to the cost of waste treatment and a fee should be imposed on ocean-going ships for the use of the centre.

"Being generators of operating wastes, ships have an obligation to contribute to the disposal, treatment and collection costs. There is no reason for the public to shoulder all the costs; some parts should come under commercial overheads," the spokesman said.

The charging scheme for ocean-going ships comprises two components: collection and treatment; and should recover about 20 per cent of the variable operating costs of the centre in respect of MARPOL waste treatment and all the associated administrative costs.

The charges are set to be comparable to those charged by some major ports, and have excluded the fixed operating costs of the Chemical Waste Treatment Centre in respect of MARPOL waste treatment.

"The fixed operating costs of the Chemical Waste Treatment Centre representing about 13 per cent of the total operating costs, is to be borne by the Government," the spokesman said.

Upon the implementation of the charging scheme, ship operators are not expected to risk prosecution by avoiding proper discharge and dumping MARPOL wastes indiscriminately into the sea.

The spokesman said: "It is not a compulsory requirement for ships to use the centre. There are third party operators which may offer collection services."

The Director of Marine, who is the authority administrating the charging scheme, has the statutory power to deal with illegal discharge of MARPOL wastes • from ships, and will step up enforcement efforts should this become a problem.

The spokesman said it was unlikely that the charging scheme would lead to a serious worsening of marine environment.

End/Wednesday, July 12, 1995

3

Fees at public cargo working areas to be revised ♦ ♦ ♦ * ♦

The Government will revise fees for the services provided at the public cargo handling areas (PCWAs) from November 4, a Government spokesman said today (Wednesday).

The new fees, an increase of 20 per cent across the board, are contained in the Port Control (Cargo Working Areas) (Amendment) Regulation 1995 to be gazetted this Friday (July 14). The fees are set at a level to remove gradually government subsidy for the commercial activities and to seek to achieve a target return.

If translated into money terms, the increase will represent an average increase of $21 or 1.3 per cent in operating cost per day in the case of a lorry.

In the case of a lighter, the average daily increase will be about $60 or 1.6 per cent of the overall cost.

’’Cargo handling operations at the PCWAs are commercial in nature and there is no reasons the operators should receive public subsidy,” the spokesman said.

End/Wednesday, July 12, 1995

Destruction of 20,000 pirated music CDs *****

The acting Commissioner of Customs and Excise, Mr Lawrence Li, will this (Wednesday) afternoon preside at the destruction of 20,000 pirated music compact discs (CDs) forfeited by orders of the court.

1'hc CDs to be destroyed are samples of pirated and infringing goods seized by Customs last year under the Copyright Ordinance.

Up to June this year, officers of the Customs Intellectual Property Investigation Bureau (IPIB) conducted 692 raids against copyright piracy.

During these raids, 102,954 pirated music CDs, 101,087 CD-Roms and 14,154 video CDs were seized with a total retail value of about $11.55 million.

4

As a result of these enforcement actions, 630 persons were arrested, of whom 206 (33 per cent) were children aged 17 or under.

All these young offenders were arrested for selling pirated music CDs. They constituted 54 per cent of all arrests (383) made this year with respect to music CD piracy.

For the purpose of deterring copyright offences, the Copyright (Amendment) Ordinance 1995 was enacted on May 26, 1995, whereby the maximum penalties for copyright infringement crimes have been substantially increased.

Under the Copyright (Amendment) Ordinance 1995, the new maximum penalty for conviction on indictment for possession of pirated articles for the purposes of trade and business is a fine of $25,000 per infringing copy and imprisonment for two years for first-time offenders, and a fine of $50,000 per infringing copy and imprisonment for four years for repeated offenders.

Parents and children are reminded that copyright piracy is a serious crime which attracts heavy penalties.

Teenage students are strongly advised to make good use of their leisure time during the summer vacation and to keep away from illicit pirated music CDs, CD-Roms and video CDs and indeed, any other crimes.

Representatives of the music industry have been invited to participate in the destruction of the forfeited CDs.

Members of the media are welcome to cover the ceremony which will be held at the Customs and Excise Service Senior Officers' Mess, ninth floor, Rumsey Street Multi-Storey Carpark Building, 2 Rumsey Street, Central. Flong Kong.

End/Wednesday, July 12, 1995

5

Quality Education ♦ * ♦ * *

Quality is one of the primary policy targets for education in this and the next decades, the Director of Education, Mr W K Lam said today (Wednesday).

Speaking at the graduation ceremony of St Mary's Canossian College, Mr Lam said: "Quality is the prime word in the 1990s for our education services.

"The will and the dedication on the part of the school leadership to strive for excellence is a key to quality education.

"Having satisfied the number targets, it is high time that we should now all focus on the quest for quality."

Mr Lam congratulated St Mary's Canossian College in leading her students to strive for excellence throughout the past decades

He praised the school for having rightly emphasised the importance of personality development and in serving the community as quality education meant much for than the teaching academic knowledge.

End/Wednesday, July 12, 1995

Air Quality Report for June *****

The Environmental Protection Department today (Wednesday) released the air quality information for June.

The purpose of the announcement was to keep the public informed of the air quality levels in the territory and to explain the measurements.

The announcement contains monitoring results from Mong Kok, Central/Western and Kwai Chung, which represent three important land use types in the territory:

* locations close to road traffic in built-up urban areas,

* combined commercial and residential districts, and

6

* districts close to industrial areas.

The reported air pollutants include sulphur dioxide (SO2), nitrogen dioxide (NO2), total suspended particulates (TSP) which comprise all sizes of dust particles, and the respirable fraction of the dust (RSP). All these pollutants can affect respiratory health in sufficient concentration.

The levels of all pollutants at the three sites were low in June, with no exceedances of the 24-hour Air Quality Objectives.

There was rain on most days of the month which washed sulphur dioxide, nitrogen dioxide and dust from the atmosphere, as well as dampened road surfaces and thereby preventing the release of surface dust.

Winds were from the South China Sea most of the time and brought in cleaner marine air. Also, wind speeds were relatively high, causing local emissions to be blown away.

The gases and particles described originated from various sources. SO2 is mostly produced when fuels that contain sulphur are burned. NO2 is formed during combustion by the combination of nitrogen and oxygen, and by the atmospheric oxidation of nitric oxide (NO), also a product of combustion.

Vehicle exhaust is an important source of NO and NO2 in terms of impact on local air quality. It is also a major source of airborne particulate matter, especially the smaller respirable particles.

Diesel-engined vehicles such as taxis, public light buses, passenger coaches, franchised buses and light and heavy goods vehicles are the greatest contributor of particulate matter. Other sources include industry, furnaces and boilers, construction activities, the sea and the soil.

It is worth noting that while the weather and climate always affect the concentrations of pollutants in the air, the only sure way of reducing the levels is to reduce emissions from the man-made sources. Note to Editors:

For further information on this air quality report, please contact Mr S W Pang on 2594 6413.

End/Wednesday, July 12, 1995

7

New Peak Post Office * ♦ ♦ * *

The new Peak Post Office, located at Flat 6, Level 3, 128 Peak Road, will open at 9.30 am on Monday (July 17).

The Postmaster General, Mr Mike Pagliari, said today (Wednesday) that this would replace the existing post office at Shop No. UG2 of the Upper Peak Iram Terminus which would close for business at 1 pm on Saturday (July 15).

The hours of business and telephone number of the new office will be the same as those of the existing office.

A special handback service will be available at the new Peak Post Office on Monday (July 17).

Unregistered covers with full postage prepaid, which are prepared privately and bear the superscription "First Day Cover" and a local address, will be accepted over the counter, impressed with the normal post office datestamp and handed back.

End/Wednesday, July 12, 1995

Two NT Lots to let

* * * * *

The Lands Department is inviting tenders for the short-term tenancies of two pieces of government land ip the New Territories.

The first lot, located in Tin Shui Wai Area 14, Yuen Long, having an area of 4,650 square metres, is to be used as a fee-paying public car park. The tenancy is for 18 months, renewable quarterly.

Covering an area of 3,000 square metre, the second lot is located in Wu Shan Road, Area 44. Tuen Mun, for storing containers.

The tenancy is for nine months, renewable quarterly.

Closing date for submission of tenders for the two lots are at noon on July 28.

8

Tender forms, tender notice and conditions may be obtained from the District Lands Offices, Yuen Long and Tucn Mun, the District Lands Offices, Kowloon, 10th floor, Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon and the Lands Department, 14th floor, Murray Building, Garden Road.

Tender plans can also be inspected at these offices.

End/Wednesday, July 12, 1995.

Hong Kong Monetary Authority money market operations *****

Time Cumulative change

$ million (hours) (Smillion)

Opening balance in the account 1,565 0930 +955

Closing balance in the account 2,222 1000 +955

Change attributable to : 1100 +736

Money market activity +737 1200 +740

LAF today -80 1500 +738

1600 +737

LAF rate 4.25% bid/6.25% offer TWI 119.1 *+0.1* 12.7.95

Hong Kong Monetary Authority

EF bills Term EF notes t Yield

Terms Yield Issue Coupon Price

1 week 5.56 2 years 2705 6.40 101.18 5.79

1 month 5.50 3 years 3804 6.90 102.28 6.09

3 months 5.51 5 years 5006 6.60 99.87 6.74

6 months 5.52 5 years M501 7.90 103.16 7.24

12 months 5.55

Total turnover of EF bills and notes - $18,645 million

Closed July 12, 1995

End/Wednesday. July 12, 1995


DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

SUPPLEMENT

Wednesday, July 12,1995

Contents Eage-Ne*

Legislative Council meeting:

Governor's response to the no confidence motion................... 1

Rule of law: core policy of Government............................ 1

Chief Secretary on vote of no confidence in Governor of HK........ 3

Transcript of CS's media session.................................. 10

Rule of law in good shape......................................... 11

AG on vote of no confidence in the Governor of HK................. 14

Chief Secretary's statement on China visit........................ 22

CS's question-and-answer session in LegCo......................... 24

Employment (Amendment)(No 2) and (No 3) Bill 1995 ................ 26

/Provisional Airport.....

Contents

Page No,

Provisional Airport Authority Annual Report................................ 28

Wills (Amendment) Bill 1994: second reading................................ 29

Wills (Amendment) Bill 1994: committee stage........................... 31

Intestates' Estates (Amendment) Bill 1994: second reading.............. 31

Intestates' Estates (Amendment) Bill 1994: committee stage................. 32

Intestates' Estates (Amendment) Bill 1994: new clauses..................... 33

Inheritance Bill: second reading........................................... 34

Inheritance Bill: committee stage.......................................... 35

Inheritance Bill: new clauses.............................................. 36

Merchant Shipping (Liner Conferences) Bill................................. 37

Electoral Provisions Bill 1995 ............................................ 38

Securities (Insider Dealing) (Amendment) Bill 1995 ........................ 39

MTRC and KCRC's localisation policy........................................ 40

Quality control of industrial protective equipment......................... 42

Damage to marine ecology by dredging works................................. 44

/Old age

Contents

Page No,

Old age allowance........................................................... 47

Fixed penalty tickets....................................................... 49

Proposed licensing examination for medical graduates........................ 52

Job vacancy statistics...................................................... 53

Staff wastage in IC AC...................................................... 55

Heavy workload on extra-curricular activity co-ordinators................... 62

Inflation rates............................................................. 63

Operational hours of South East NT landfill................................. 65

Waiting time for first consultation in specialists' clinics................. 66

Request for info from IRD on drug trafficking suspects...................... 67

International covenants on human rights..................................... 68

Factors to determine sites for schools...................................... 69

Vehicles taken to scrapping yards........................................... 70

Waiting list for pubic housing.............................................. 73

Police procedure on open fire............................................... 75

Purchase of electricity from Daya Bay....................................... 76

Helicopter accidents........................................................ 78

1

Governor's response to the no confidence motion *****

In response to media enquiries on the no confidence motion in LegCo tonight, a spokesman for the Governor, the Rt Hon Christopher Patten, said:

"We are naturally pleased at the outcome of the debate. But for us, the big vote continues to be the one on the Court of Final Appeal Bill later this month which is so vital to Hong Kong and to the confidence of the world's investors in our future.

"We will continue to work flat out to get the best possible result on this major issue."

End/Wednesday, July 12, 1995

Rule of law: core policy of Government *****

The Chief Secretary, the Hon Anson Chan, urged Members of the Legislative Council today (Wednesday) to consider seriously the damaging consequences for Hong Kong if the legislature declared that it had no faith in the Administration's commitment to the rule of law. She made clear that she saw no case for Members to support the motion.

In her robust response to the motion on "Vote of No Confidence in the Governor of Hong Kong" debated at LegCo today, Mrs Chan said she had the strongest objections to the motion, both personally and on behalf of the Administration, and that the proposed amendment was also unacceptable.

"This motion is an attack on all the efforts that this Council, the civil service and the community have made over the last three years to create a secure future for our people through safeguarding the rule of law," she said. She pointed out that the motion is counter-productive in sending the wrong message to both the local and international community.

"It undermines the partnership between this Council, the civil service and the community as a whole, which has achieved so much over the last three years.

"It casts aside all the efforts that Hong Kong has made, especially over the last three years, to secure our future on the firm foundations of the rule of law.

2

"It encourages needless anxiety and apprehension among our overseas business partners and thus threatens our future economic prosperity."

Mrs Chan said the motion had also dismissed the significant contribution made 1 by the Governor in directing the entire process of reform in safeguarding the rule of law and in removing the legal restrictions on freedom of expression.

"It is under his leadership that the civil service has worked to introduce and to implement the extensive reform programmes."

She pointed out that the Governor has also made a personal contribution to the' authority of the Legislative Council.

"He was the first Governor in our history to step down from the Presidency and allow Members to elect their own President.

"He is the only Governor to accept a duty to appear before this Council regularly and to answer directly questions of Honourable Members.

"He has found new ways to discharge the Administration's duty of frankness, both to this Council and to the community."

Mrs Chan said the efforts made by LegCo and the Administration since 1992 demonstrated "in a very concrete way Hong Kong's determination to protect its way of life and to meet the challenges of the future".

The rule of law, firmly embedded in Hong Kong's community, is a result of the diligent work of the Legislative Council in scrutinising and approving a host of legislation to protect individual rights and freedom of expression.

The Chief Secretary appealed to Members to reject both the motion and the proposed amendment which, if supported by the Council, would do very real damage to the best interests of Hong Kong.

End/Wednesday, July 12, 1995

3

Chief Secretary on vote of no confidence in Governor of HK *****

Following is the speech by the Chief Secretary, the Hon Anson Chan, in the Legislative Council motion debate today (Wednesday) on the vote of no confidence in the Governor of Hong Kong:

Mr President,

I should like to make it plain from the outset that I have the strongest objections to this motion, both personally and on behalf of the Administration. Let me also make it clear that the proposed amendment is unacceptable. I appreciate the courtesy of the Honourable Member in seeking to depersonalise the original motion. However, I must totally reject the allegation that we have acted in breach of the Joint Declaration. On the contrary, it has been amongst our highest priorities to promote Hong Kong's wellbeing through the faithful implementation of the Joint Declaration.

Let me turn now to the original motion. This motion is not really about confidence in the Administration and the Governor. Nor is it part of the normal dialogue of goodwill and common sense between the Administration and the Legislative Council which the community is entitled to expect. This motion is an attack on all the efforts that this Council, the civil service and the community have made over the last three years to create a secure future for our people through safeguarding the rule of law.

We should begin by looking at the principles involved. For the Government of Hong Kong, the rule of law is not a text-book phrase or a debating slogan. The rule of law is a core policy, which is at the heart of so much of our work. The Administration's dedication to the rule of law was spelled out in the clearest terms when the Governor addressed this Council on 5 October last year. I cannot hope to improve on the words he used on that occasion. Let me quote these words:

"The rule of law is essential for Hong Kong's future. It begins with individuals and their right to seek the protection of the Courts, in which justice is administered by impartial judges. It protects the freedom of individuals to manage their affairs without fear of arbitrary interference by the Government or the improper influence of the rich and powerful. Its starting point is the individual but it encompasses the whole of society. For the business community in particular, the rule of law is crucial. Without it, there is no protection against corruption, nepotism or expropriation. Only under the rule of law are businessmen guaranteed the level playing field and the competitive environment which they need."

4

I believe that these .views are shared by this Council and by the entire community. Certainly, I can speak for the civil service in declaring that we regard the rule of law as the bedrock of our Hong Kong way of life.

V

How have we implemented this policy in practice? Let me start with this Council. In September this year, Hong Kong will have its first, fully-elected legislature. We can take considerable satisfaction in how far we have come since the 1991 elections in safeguarding the rule of law through ensuring a legislature which can command the respect of our community and the confidence of the outside world. Members need no reminder that this constitutional milestone has been reached only after major efforts both on the part of this Council and of the Administration.

Thanks to the Council’s co-operation last year, we have completed a heavy legislative programme to replace the Appointed and Official Members and to establish a broader and more transparent system of elections.

• u . . f-

Thanks to our voter registration campaigns, we now have two-and-a-half million registered voters. In the functional constituencies, the number of , voters has increased fifteen times compared with 1991.

... .^r

After putting in place the constitutional building blocks, the Administration has returned to this Council with an ambitious legislative programme to protect individuals against unfair treatment. Altogether some forty items of legislation have been introduced during the last three sessions, whose purpose is to enhance the protection of individual rights. For example, with this Council's co-operation,

we are working together to outlaw discrimination on grounds of sex or disability,

we are providing additional resources to make justice more accessible to the community at large, both through increasing the scope of legal aid and through reducing waiting times for the law courts, and

we are working together to safeguard the individual’s right to privacy of ip, personal data. ,1

we have brought forward proposals to remove legal restrictions on press freedom, and . r...


5

we have introduced a Bill establishing a Court of Final Appeal to ensure that in 1997, we have credible and effective arrangements to replace the Privy Council. A great deal has been said about this matter already and there will be a further opportunity to debate the proposals when the second reading of the Bill is resumed later in this session.

Furthermore, we have reviewed comprehensively the Laws of Hong Kong in the light of the Bill of Rights. We are committed to ensuring that our laws meet international standards of human rights in accordance with the International Covenant on Civil and Political Rights.

Members of this Council have had their own views on the best way to take these issues forward. We have had vigorous and protracted debate to try and reach consensus but we have not always been able to accept Members' views. Despite the often serious divisions of opinion, I believe that, over these many months, Honourable Members and officials alike have shared the same conviction. We all believe that respect for the rule of law must include respect for the individual rights of everyone, particularly of the vulnerable and disadvantaged members of our community. Where we have differed has been over the most realistic ways in which to reach our common goal.

But the Administration's commitment to the rule of law has not been confined to constitutional and legislative proposals brought before this Council. We see the rule of law and its application in a much wider context. For the Administration, our starting point is the belief that the rule of law flourishes best where the community knows its rights when dealing with government departments. Since 1992, the Administration has applied this rule to its own performance, as we have invested heavily in providing more professional, accountable and responsive government. For example,

We have drawn up Performance Pledges for every government department serving the public directly, defining the standards which the public can expect and explaining how to complain when these are not met.

We have published Policy Commitments which set out goals, outline current programmes and present new initiatives for the entire range of government activities.

6

We have published an annual Progress Report which describes candidly the shortcomings, as well as the successes, of the more than 500 initiatives and undertakings introduced in the last three Policy Addresses.

We have introduced a Code on Access to Information, to set a new benchmark for government accountability.

We have increased the powers of the Commissioner for Administrative Complaints so that the public’s grievances are independently investigated.

The reforms introduced since 1992 represent a comprehensive legal and administrative programme, which demonstrates in a very concrete way Hong Kong’s determination to protect its way of life and to meet the challenges of the future. In managing this reform programme, the Administration has relied on a successful partnership which brings together the community, the civil service and this Council.

First, our community has demonstrated a clear sense of the importance of the rule of law and displayed consistent support for our proposals.

Secondly, the civil service has been willing to rise to the challenges created by the reforms and to improve the quality of its own performance.

Thirdly, this Council has worked conscientiously with the Administration in debating our reform proposals and enacting laws which will meet our people's aspirations under the unique circumstances which govern both our constitutional development and our political future.

In all this, Members of this Council have made a special contribution. And I have been robust, both locally and abroad, in my defence of the Council and of the way in which it has performed since 1991. Its Members play a vital role in our Hong Kong system. You oversee our spending programmes amend our legislative proposals. You monitor the Administration's activities and criticise our lapses. Without this contribution from Members, our standards of government would not be so high and the quality of our public services would not meet the requirements of our First-World community. In short, the co-operation of Members with the Administration has been a key factor in the successful Hong Kong partnership.

7

Because this partnership has worked so well, Hong Kong has been able to allay much of the inevitable doubt and worry about the change in sovereignty and our ability to maintain Hong Kong’s separate systems after 1997. The people of Hong Kong have shown considerable faith in their ability to cope with the challenges of 1997. They have continued to set their sights on the prospects for a better Hong Kong,

better education and career opportunities for their children,

better homes and living standards for their families, and

better public services for all who need them.

The business community has shown its faith in Hong Kong’s ability to provide the most attractive business environment in this part of the world, an environment in which honest government and an impartial judiciary are key ingredients. And this confidence has brought its own substantial rewards both before and since 1992.

In particular, we have been able to take the fullest advantage of the Chinese economy’s growth, allowing our GDP to increase by 5% a year in real terms.

We have also enjoyed buoyant government revenue, enabling us to improve our social services, invest heavily in the infrastructure, cut taxes and boost our fiscal reserves.

Given this background, the motion now under debate rejects the sort of partnership to which I have referred.

It presents a grossly distorted view of the Administration and its relationship with this Council.

It devalues the efforts, both of the civil service and of Council Members over the last three years to secure our future based on the rule of law.

And finally, it calls into question the very basis of business as well as political confidence in our future.

I must also draw Members’ attention to the wider audience which the motion addresses, the audience overseas. In particular,

8

The motion invites the outside world to believe that the Administration of Hong Kong has reneged on its obligations, thereby forfeiting the confidence of this Council.

Consequently, the motion encourages the international community, our trading and investment partners, to question Hong Kong’s future, to doubt whether the rule of law will survive.

I ask all Honourable Members to consider carefully the serious consequences for Hong Kong if the motion succeeds. And I must note that both from the speech of the Honourable Member moving the motion in the first place and the question raised by another Honourable Member subsequently raised a serious doubt as to whether members appreciate that the reference to the damage of rule of law cannot be narrowly confined to the Court of Final Appeal. It must be taken in its full sense, that is in the proper context which I have attempted to outline in this speech so far. If our legislature declares that it has no faith in the Administration’s commitment to the rule of law, that this Council has lost confidence in Hong Kong’s future,

can we expect the world's traders to continue to regard Hong Kong as the premier business location in the Asia region?

can we expect international investors to be comfortable about holding Hong Kong assets?

can we expect multinational corporations to maintain their regional headquarters here?

And if business is adversely affected, I must point out it is the ordinary men and women of Hong Kong who will suffer.

I want now to take up the reference in the main motion to the Governor. Throughout the entire process of reform, the Administration's efforts have been directed by the Governor. It is under his leadership that the civil service has worked to introduce and to implement the extensive programmes which I have described. In addition, the Governor has made a very personal contribution to the authority of this Council.

He was the first Governor in our history to step down from the Presidency of this legislature and allow Honourable Members to select their own President.

9

He is the only Governor to accept a duty to appear before this Council regularly and to answer directly the questions of Honourable Members.

No less important, he has found new ways to discharge the Administration’s duty of frankness, both to this Council and to the community.

Early in my speech today, I quoted his description of the rule of law as a core policy for the administration. I have described our efforts to implement that policy through a partnership involving this Council, the civil service and the community. The Governor has promoted that partnership in two vital ways: first, through his personal commitment to the rule of law and, second, through the respect which he has shown for this Council and its work.

Let me sum up in plain terms, the overwhelming case against this motion.

It undermines the partnership between this Council, the civil service and the community as a whole, which has achieved so much over the last three years.

It casts aside all the efforts that Hong Kong has made, especially over the last three years, to secure our future on the firm foundations of the rule of law.

It encourages needless anxiety and apprehension amongst our overseas business partners and thus threatens our future economic prosperity.

I urge Honourable Members strongly to reject both this motion and the proposed amendment. I can see no possible benefit to the people of Hong Kong from voting in their favour. On the contrary 1 can foresee very real damage to the best interests of Hong Kong if the motion - or the proposed amendment - were supported by this Council.

End/Wednesday, July 12, 1995

10

Transcript of CS's media session *****

The following is a transcript of the Chief Secretary, Mrs Anson Chan's media session after a LegCo motion debate today (Wednesday):

Chief Secretary: I am very pleased with the outcome of the voting on the motion of vote of no confidence in the Governor. I think the resounding defeat of this motion indicates that the council does recognise the efforts that the administration, under the leadership of the Governor, have made in recent years both to safeguard the rule of law, to safeguard our way of life and to work for the faithful implementation of the Joint Declaration and the Basic Law. We have made considerable efforts in the past three years. These efforts will continue, I can assure you, in the remaining years of transition.

Question: ... As you did manage to defeat this motion by a two one margin do you now feel you no longer have to pay much heed to what these people had said?

Chief Secretary: No, we pay every attention to the views of the Legislative Council irrespective of their political leanings. I have set out in great detail in my speech how we have co-operated with the council in the past and we intend to continue this cooperation in the remaining years of transition.

Question: Regarding specifically there are criticisms for the Governor, do you feel... been ignored?

Chief Secretary: I referred to the resounding defeat of the motion of no confidence in the Governor. 1 think that's ample evidence.

Question: Why didn't the Governor come down and defend himself?

Chief Secretary : The Governor, as I said, is the head of the administration. The Governor is not a member of the Legislative Council and it is entirely natural that the Attorney General and myself should represent the administration as a whole in speaking in this motion. It involves not just the Governor, but as 1 said earlier, it involves the entire civil service, all 180.000 civil servants.

End/Wednesday, July 12, 1995

11

Rule of law in good shape *****

Rule of law is about fundamental principles which the Hong Kong Government zealously promotes and enhances, and the Government's track record over the past three years on reinforcing and preserving the rule of law has been beyond reproach, the Attorney General, the Hon Jeremy Mathews, told the Legislative Council today (Wednesday).

Mr Mathews said the rule of law had been paramount in the vision for the future set out by the Governor. The motion in the Council calling for a no confidence vote on the Governor was founded on some bare assertions that were unsupported by any evidence, he said.

Speaking against the motion by the Hon Cheung Man-kwong and an amendment by the Hon Emily Lau, Mr Mathews set out three principles of the rule of law which shape and underpin the fabric of the society:

* No one exercising power, from the Governor down, can do anything to affect the individual, his or her home, his or her property or his or her freedom, unless he can point to some specific provision of the law which authorises his action.

* All persons are equal before the law. All persons, high or low. rich or poor, whatever their race, politics or religion, arc subject to the law of Hong Kong administered by the courts.

* I long Kong's courts are independent of the executive. Throughout the years, decisions of the courts to protect the rights of individuals and to check abuse of the powers of the Government have exercised a profound influence.

In elaboration of the first principle. Mr Mathews pointed out that acts of the Government were subject to judicial safeguards.

He highlighted the safeguards: the power of arrest and detention before trial were subject to strict limits: the prosecution had to prove its case beyond reasonable doubt; the trial had to be public so that it could be seen that there was no injustice, the duty of the prosecution was not to strive to secure a conviction but to see that all the facts were placed fairly before the court so that the verdict would be just; and the discretionary powers exercised by the Government could be challenged through judicial review.

12

Mr Mathews set out the various areas where action had been taken by the Government to have the rule of law strengthened.

The Bill of Rights Ordinance, incorporating the provisions of the International Covenant on Civil and Political Rights as applied to Hong Kong was enacted, and recently several other measures to consolidate and strengthen its impact, and human rights protection generally, had been introduced.

Extra resources have been provided for the Judiciary to introduce specialist lists for cases involving the Bill of Rights, and legislation has been enacted, and the necessary resources provided, to enable the Director of Legal Aid to waive the means test in civil claims under the Bill of Rights Ordinance.

Together with the on-going exercise of reviewing legislation to ensure compliance with the Bill of Rights Ordinance, there is the review of legislation that may infringe freedom of expression, in particular, press freedom.

Other measures include the extension to Hong Kong of the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; increased resources for human rights education; enactment of legislation against sex discrimination; establishment of an Equal Opportunities Commission; introduction of legislation against discrimination on the ground of disability, and in the area of data protection; and extension to Hong Kong of the Convention on the Rights of the Child.

All these measures and those mentioned by the Chief Secretary in the motion debate "indicate in the clearest possible terms that the Hong Kong Government is passionately committed to enhancing and promoting human rights protection ensuring the continuation of the rule of law in Hong Kong", Mr Mathews said.

Mr Mathews also answered criticisms against the Court of Final Appeal Bill that were raised by certain Members.

The suggestion that the agreement reached at the Joint Liaison Group last month was a "rotten deal", and that the Court of Final Appeal Bill would undermine the future rule of law in Hong Kong, were bizarre in the extreme.

"These suggestions are wholly irresponsible, having no foundation whatsoever in fact or evidence, are totally misleading and very damaging to confidence in Hong Kong's future," he said.

13

On the "four plus one" composition of the court, Mr Mathews pointed out that the assertion that it breached the Joint Declaration and the Basic Law was incorrect The view that it was consistent with the Joint Declaration and the Basic Law was supported by a number of authoritative independent legal opinions, he said.

As to the establishment date of the court on July 1, 1997, Mr Mathews noted that the Administration had made no secret that it would have preferred to have it earlier, but Members were fully aware of the reasons why there had been a delay. If the Bill was enacted, a judicial vacuum would be avoided and no harm would be done to the future rule of law.

On the future appointment of CFA judges, Mr Mathews said the Governor made clear to the LegCo when he announced the CFA agreement on June 9 that the Government had obtained a clear statement from the Chinese side that the Chief Executive would only conduct the meeting of the Judicial Officers Recommendation Commission, and would take no part in making the recommendation.

He added: "And this would be a one-off transitional arrangement. Once the Chief Justice had been appointed, he would of course chair the JORC. On this basis, we accepted that the proposed arrangement was a practical one and did not breach the Basic Law."

In respect of "acts of state", Mr Mathews said neither the JLG agreement nor the Court of Final Appeal Bill in any way altered the jurisdiction of the court as provided for in the Basic Law. Furthermore. Article 19 of the Basic Law, which referred to acts of state "such as defence and foreign affairs", could be construed consistently with the common law.

No lawyer had ever denied the proposition that under the common law, there were acts of the government outside the areas of defence and foreign affairs that could not be challenged in court.

"On the contrary, the Hon Martin Lee himself expressly agreed in 1988 that there were under the common law acts outside the areas of defence and foreign affairs which are non-justiciable," Mr Mathews said.

"The Government in no way agrees that Article 19 has created any hole in the common law. If anyone else says that it has done so. then it is he. not the Government, that is running up the white Hag over this issue." he said.

Mr Mathews noted that people in Hong Kong were justly proud to live in a free, prosperous, open and pluralistic society.

14

"However, the rule of law ultimately depends on the will of the courts, lawyers, government, and legislature, as well as the confidence of the community and the institutions.

"The confidence of the public should not be undermined by bold assertions and accusations based on no justifiable grounds," he said.

End/Wednesday. July 12, 1995

AG on vote of no confidence in the Governor of HK * * * * *

Following is the speech by the Attorney General, the Hon Jeremy Mathews, in the Legislative Council motion debate today (Wednesday) on the vote of no confidence in the Governor of Hong Kong:

Mr President.

I would like to join with the Chief Secretary and register the Administration's strongest objections to this motion and the amendment. I wish particularly to associate myself with the Chief Secretary's remarks concerning the Governor. He has time and again set out for us a vision for the future in his Policy Addresses, in his many appearances before this Council and in many other public occasions, a vision in which the rule of law has been paramount. That vision and his leadership have been a source of inspiration to all.

The original motion purports to be founded on some bare assertions put forward in the course of certain Honourable Members' speeches today - assertions which remain wholly unsupported by any evidence. Such extravagant language by certain Honourable Members renders a grave disservice not just to this Council but to the people of Hong Kong and puts at risk the legitimate interests of future generations.

INTRODUCTION

Mr President, much has been said about the rule of law, but let us be clear what we are talking about: we are talking about fundamental principles that shape and underpin the fabric of our society. They are principles which this Government zealously promotes and enhances. Indeed, over the past three years our track record on the reinforcement and preservation of the rule of law has been beyond reproach.

15

WHAT MEANS THE RULE OF LAW?

So what does the rule of law mean? I start by reminding honourable members that the common law underpins the principle of the rule of law which govern the way in which power is exercised every single day in this community. The first principle of the rule of law is that no-one, no-one exercising power, from the Governor down to the police constable on the beat or a clerical assistant, can do anything to affect the individual, his or her home, his or her property, his or her freedom, unless he can point to some specific provision in the law which authorises his action. If he fails to do that, he can be sued in the courts of Hong Kong and can be compelled to put right what he has done or to pay compensation for the wrong that he has done.

JUDICIAL AND EXTRAJUDICIAL REVIEW OF ADMINISTRATIVE ACTION

Acts of the Government arc subject to judicial safeguards. Judges have always stood firm against the abuse of power. Nowhere is a principle more graphically illustrated than in the criminal law where the power of arrest and detention before trial are subject to strict limits. The prosecution must prove its case beyond reasonable doubt. The trial must be public so that it can be seen that there is no injustice. Those who prosecute do not strive to secure a conviction; their duty is to sec that all the facts are placed fairly before the court so that the verdict will be just — I emphasise that word — not merely expedient.

The exercise by the Government of discretionary powers can be challenged by the people of Hong Kong through judicial review. So decisions made by immigration officers refusing entry to Hong Kong, Licensing Tribunals refusing liquor licences and the Building Authority rejecting plans for property development - just to mention a few examples — are all judicially reviewable. In 1993, there were 123 applications for judicial review and in 1994, there were 75 such applications. The ability and the readiness of the community to challenge Government decisions, awkward though that may be from time to time for the Government, is a right that we regard as of great importance in buttressing the rule of law. We would not have it done the other way.

EQUALITY BEFORE THE LAW

I turn now to the second principle of the rule of rule which may be summarised as equality before the law. The principle was graphically brought home by arguably the greatest common judge of this century, Lord Denning in a major constitutional case when he said "Be you never so high, the law is above you." All persons, high or low, rich or poor, whatever their race, politics or religion, are subject to the law of Hong Kong administered by the courts.

16

INDEPENDENCE OF THE JUDICIARY

A third principle of the rule of law, namely, the independence of the judiciary, explains why Hong Kong remains a free, open and well-ordered society. Our courts are independent of the executive. Throughout the years, decisions of the courts to protect the rights of the individual and to check abuse of the powers of the Government have exercised a profound influence — a phenomenon which I would term the judicial education of the public sector. Lawyers, public servants, law draftsmen, members of this Council and the media all work to preserve the fundamental features of the common law system. And Here I would like to pay tribute to the invaluable role played by this Council in preserving the rule of law by questioning the Government on the use of its powers and scrutinising Government bills so as to limit arbitrariness and executive discretion. Complementing this legislative tendency, laws arc in practice drafted and enacted to preserve rather than extinguish individual rights, to ensure that proper compensation is paid to those whose property is taken away for public purposes, to promote fair dealing rather than peremptory behaviour, and to lay down specific and clear limits to governmental powers rather than to give discretionary or arbitrary powers that could readily be abused.

MEASURES TAKEN TO STRENGTHEN THE RULE OF LAW

Mr President, I now turn to set out the record of this Government on the rule of law. The Chief Secretary has already mentioned a number of areas where action has been taken to strengthen the rule of law. I wish to elaborate a little further on this aspect.

THE BILL OF RIGHTS

No one should underestimate the importance of the enactment of the Bill of Rights Ordinance to the protection of the rule of law in Hong Kong. The Ordinance incorporates into the law the provisions of the International Covenant on Civil and Political Rights as applied to Hong Kong. It provides the people of I long Kong with protected rights and freedoms which they can and do assert against the Government if the need arises.

Recently, the Government has introduced several other measures to consolidate and strengthen the impact of the Bill of Rights Ordinance and human rights protection generally. For example, extra resources have been provided to the Judiciary to introduce specialist lists for cases involving the Bill of Rights. Legislation has very recently been enacted, and the necessary resources provided, to enable the Director of Legal Aid to waive the means test in civil claims under the Bill of Rights Ordinance.

17

Honourable members will need no reminding from me of the on-going exercise of reviewing legislation to ensure compliance with the Bill of Rights Ordinance. Since the enactment of the Ordinance four years ago in 1991, there have been 29 amending ordinances or regulations made for the purpose of bringing legislation into line with the Bill of Rights.

Other proposed amendments are currently being scrutinised by the Council, including bills to amend the Public Order Ordinance and the Places of Public Entertainment Ordinance.

Overlapping with the review of legislation in the light of the Bill of Rights Ordinance is the review of legislation that may infringe freedom of expression, in particular, press freedom. As a result of that review, amendments have been made or are about to be made to a wide range of ordinances and regulations including the following:-

the Television Ordinance and Broadcasting Authority Ordinance;

the Summary Offences Ordinance;

the Places of Public Entertainment Ordinance;

the Registration of Local Newspapers Regulations;

the Judicial Proceedings (Regulation of Reports) Ordinance;

the Defamation Ordinance;

the Regulations made under the Emergency Regulations Ordinance.

Plans are being finalised in respect of the Official Secrets Acts and the Crimes Ordinance, among others. A bill is now before this Council providing safeguards in respect of the search and seizure of journalistic material. The bill is a further proof (if such be needed) of the Government's firm commitment to a free and vigorous press in Hong Kong.

OTHER HUMAN RIGHTS MEASURES

Other measures introduced by the Government to enhance human rights protection in Hong Kong include the following:-

the extension to Hong Kong of the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and the domestic enactment of the Crimes (Torture) Ordinance;

18

increasing the resources for human rights education by creating a dedicated team and allocating $20 million for their work over three years starting in 1995-96: in this regard it is worth reminding ourselves that last November the United Nations Committee on Economic, Social and Cultural Rights pronounced Hong Kong to have done more than any other country in promoting public education and understanding of human rights;

enacting legislation against sex discrimination, establishing an Equal Opportunities Commission and seeking to extend the Convention on the Elimination of All Forms of Discrimination Against Women;

introducing legislation to prohibit discrimination on the ground of disability;

extending to Hong Kong the Convention on the Rights of the Child;

introducing legislation in the area of data protection.

I can go on Mr President. All of the measures that the Chief Secretary and I have mentioned indicate in the clearest possible terms that the Hong Kong Government is passionately committed to enhancing and promoting human rights protection ensuring the continuation of the rule of law in Hong Kong.

THE COURT OF FINAL APPEAL

Mr President, I would like now to turn to the Court of Final Appeal, a matter deliberately painted as one of controversy by certain members today. The suggestion that the agreement reached at the Joint Liaison Group last month was, as claimed earlier on, a "rotten deal", and that the Court of Final Appeal Bill will undermine the future rule of law in Hong Kong, are bizarre in the extreme. These suggestions are wholly irresponsible having no foundation whatsoever in fact or evidence, are totally misleading and very damaging to confidence in Hong Kong's future.

Since 1988, the Hong Kong and British Governments have been doing their utmost to ensure that a proper Court of Final Appeal will be established in Hong Kong, in such manner as to avoid a judicial vacuum after 1997. The whole purpose of doing this is, of course, to protect the rule of law in Hong Kong and to ensure the continuity of the legal system. The agreement reached last month makes it possible for our aims to be achieved, provided (of course) that this Council passes the Bill that is now before it.

19

The Council therefore has the power to buttress the future legal system with a Court of Final Appeal that, subject only to the Basic Law, has the same functions and jurisdiction as the Judicial Committee of the Privy Council. And to do so without creating any damaging judicial vacuum.

What arc the objections that have been raised to the Bill or to the agreement?

COMPOSITION OF THE COURT

First, some members object to the proposed 4+1 composition of the court. It has been argued that the 4+1 formula breaches the Joint Declaration and the Basic Law. This assertion is not correct, and has been rejected by both British and Chinese Governments. Our view that the 4+1 composition is consistent with the Joint Declaration and the Basic Law is supported by a number of authoritative independent legal opinions.

Some members have criticised the JLG agreement providing for the 4+1 composition on the grounds that the court ought to have granted flexibility to invite more overseas judges if it wishes. We have not the slightest doubt that the 4+1 composition is a perfectly acceptable way of implementing the provisions in the Joint Declaration and the Basic Law that provide for judges from other common law jurisdictions to sit on the Court of Final Appeal. Nor is the rule of law in any way undermined by this composition.

A few members referred to the eight proposals put forward by the PWC Political Affairs sub-group, and criticised the Government in particular for accepting the proposal that the Chief Executive should chair the meeting of the Judicial Officers Recommendation Commission at which the recommendation would be made in respect of the first Chief Justice. As the Governor made clear to this Council when he announced the CFA agreement on 9 June, we obtained a clear statement from’ the Chinese side that the Chief Executive would only conduct this meeting of the JORC and would take no part in making the recommendation. And this would be a one-off transitional arrangement. Once the CJ had been appointed, he would of course chair the JORC. On this basis, we accepted that the proposed arrangement was a practical one and did not breach the Basic Law.

DELAYED COMMENCEMENT

Another provision in the Bill that has been criticised is that providing for the court to be established on 1 July 1997. The Administration makes no secret of the fact that it would have preferred to establish the court earlier than this. However, Members are fully aware of the reasons why there has been a delay over the establishment of the court.

20

The JLG agreement of last month provides for the establishment of the court on 1 July 1997, in such a way as to avoid a judicial vacuum. In other words, if the Bill is enacted, no harm will be done to the future rule of law.

ACTS OF STATE

I turn now to the provisions in the JLG agreement and Court of Final Appeal Bill in respect of acts of state. A lot of very damaging, and misleading, rhetoric has arisen out of these provisions. Mr President, there are so many red herrings the place is beginning to look like a fish market. Let me set the record straight.

First, neither the JLG agreement nor the Court of Final Appeal Bill in any way alters the jurisdiction of the court as provided for in the Basic Law. I have not heard a single lawyer deny this proposition. Therefore to say that the JLG agreement or the Bill has created any sort of problem is completely without foundation. To say that they have created a "hole in the common law" is, in my view, totally irresponsible.

Secondly, Article 19 of the Basic Law, which relates to acts of state, can be construed consistently with the common law. A great deal has been made — more heat generated than light shed, I would suggest - of the fact that Article 19 refers to acts of state "such as defence and foreign affairs". Yet, it cannot be doubted that, under the common law, there are acts of the government outside the areas of defence and foreign affairs that cannot be challenged in court. No lawyer has ever denied this proposition. On the contrary, the Hon Martin Lee himself expressly agreed in 1988 that there were under the common law acts outside the areas of defence and foreign affairs which are non-justiciable. The Government in no way agrees that Article 19 has created any hole in the common law. If anyone else says that it has done so, then it is he, not the Government, that is running up the white flag over this issue.

I repeat, however, that it is the Basic Law, not the JLG agreement, not the Court of Final Appeal Bill that will determine jurisdiction of the courts over acts of state. Nothing that the Hong Kong or British Government has done is in issue here, or has undermined the rule of law in any way.

Before I leave the Court of Final Appeal Bill, I would like to deal with a small further point: one Member point out that the Bar Association was opposed to the CFA Bill. But that member totally failed to mention that the Law Society fully supports the Bill. I cite this as yet another example of the one-sided and tendentious arguments put forward by some Honourable Members during this debate.

21

CONCLUSION

Mr President, let me end by re-stating the Government's opposition to the motion and the amendment. The rule of law lies at the very heart of our legal system and the legal institutions that have developed here. It plays a crucial role in securing our stability and prosperity, to the extent of rendering Hong Kong's fair and decent society the envy of many the world over. The Hong Kong Government, like the courts, the lawyers and this Council, has been striving to preserve the rule of law enjoyed by members of the public in Hong Kong. People in Hong Kong are justly proud to live in a free, prosperous, open and pluralistic society. However, the rule of law ultimately depends on the will of the courts, lawyers, government, and legislature, as well as the confidence of the community and the institutions. The confidence of the public should not be undermined by bold assertions and accusations based on no justifiable grounds.

Mr President, let me ask what this motion and amendment can offer the people of Hong Kong. The answer is NOTHING - simply nothing. Moreover, the motion and the amendment are founded on premises that are wholly wrong. The future of our legal system will be very much the same, if not better, shape as the one in which we now take pride.

A few members painted a picture of the rule of law being swept away as if by some evil deluge of Biblical proportions at the stroke of midnight on 30 June 1997. Such dire predictions are unbecoming those Honourable Members of this Council and can in no way be justified as responsible behaviour by legislators looked up to as leaders of our community. Is this all that can be offered by certain Council members to the people of Hong Kong in this their supposed hour of need? Such a vision is a recipe for despair and offers no sustenance - spiritual or otherwise - for our society.

1 for one totally reject such a doomsday scenario. The Government offers hope to the people of Hong Kong - hope through action. Otherwise, the 180,000 members of the Civil Service including the 1,000 members of my Chambers would not have toiled so hard over the past three years to preserve and enhance the rule of law and so make this a better place for all of us in which to live for now and the future. We firmly believe that, through our labours, we have, far from damaging the rule of law, done much to preserve and enhance it. We shall continue to do so, for the benefit of the community and the generations to come. We totally reject the motion and the amendment presented today and urge Honourable Members to do the same.

End/Wednesday. July 12, 1995

22

Chief Secretary's statement on China visit ♦ ♦ * ♦ ♦

Following is a speech by the Chief Secretary, the Hon Anson Chan, in the Legislative Council today (Wednesday) on her recent visit to China:

Mr President,

With your permission, I would like to make a statement on my recent visit to Peking.

The Governor and I have indicated on many previous occasions in the past our wish to discuss with Director Lu Ping issues relating to the transition of Hong Kong. Indeed, during his Question and Answer session on 27 April, the Governor informed this Council that he had extended an invitation to Director Lu to meet either him or, if that was not possible, the Chief Secretary during his visit to Hong Kong in May. Following that, I received an invitation from Director Lu to meet him over lunch in Zhuhai on 28 May. Unfortunately 1 was unable to accept the invitation because I was already committed to visit London. As Members are aware, I then made it clear in a public response that I welcomed the Director's invitation to meet him in China and that I had written to Director Lu stating that I looked forward to doing so when 1 returned from leave in July. These are all matters of public record.

It was whilst I was on leave last month that I received an invitation from the Hong Kong and Macau Affairs Office to visit Peking from 30 June to 3 July. I immediately informed the Governor, who approved the visit. While I was in Peking, I was able to meet with not only Director Lu Ping and his two deputy directors but also Vice-Premier Qian Qichen. 1 had a 90-minute discussion with Director Lu and met Vice Premier Qian for about 50 minutes. These discussions took place in a positive and friendly atmosphere. We exchanged views on a wide range of issues relating to the transition, including the economy, the civil service and co-operation with the Preparatory Committee and the Chief Executive (Designate) and his team.

1 took the opportunity to outline civil servants' concerns and to stress the need for continuity in the Civil Service to ensure a smooth transition. Both Vice-Premier Qian and Director Lu were at pains to reassure me about the importance they attached to the civil service: their desire to see continuity within the civil service; and their wish for the majority of the civil servants to continue in office after 1997. subject of course to the provisions in the Joint Declaration and the Basic Law as regards the selection of the Chief Executive (Designate) and his responsibility for nominating principal officials. I very much welcomed these reassurances. I noted in particular that all my colleagues were committed to serving Hong Kong. I had a competent team in place and all policy secretaries were qualified to stay on after 1997. I also indicated my wish to continue to serve the people of Hong Kong after 1997.

23

Both Vice Premier Qian and Director Lu were interested in the Hong Kong economy and we discussed various aspects of the economy and prospects for the immediate future.

On transitional matters, we discussed briefly the establishment of the Preparatory Committee and the selection of the Chief Executive (Designate) who would nominate the principal officials. I referred to the commitment we had already made to cooperate fully with both the Preparatory Committee and with the Chief Executive (Designate) and his team once they were appointed. We agreed that there should be co-operation between the two sides on these transitional issues, although the form of co-operation will need to be discussed in detail.

I reaffirmed our readiness to continue to work closely with the Chinese side to complete all outstanding preparations to secure the full and faithful implementation of the Joint Declaration and the Basic Law. And both Vice Premier Qian and Director Lu assured me that the Chinese Government would do everything possible to ensure a smooth transition, and maintain confidence in Hong Kong.

At the end of the discussions, we agreed that there should be more contact between senior officials of both sides. Indeed, Director Lu and I agreed that we ourselves should be in regular contact. I came away from these meetings very encouraged about the prospects for more positive co-operation between the two sides. I see the visit as an important first step in enhancing mutual understanding and cooperation in the run-up to 1997. I hope that on the basis of this visit, it will be possible for us to establish a more trusting relationship which will be conducive to resolving issues of mutual concern.

I understand that some Members have expressed reservations that the visit was not announced in advance; and that this might generate misunderstandings on the part of the community. Let me assure Members that my meetings with Vice-Premier Qian and Director Lu were not negotiating sessions. The sole purpose of this visit was to provide an opportunity for us to get to know each other better and to open up a channel of communication to enhance contact between the two sides. There were no secret deals; no open deals; in short, no deals at all. Such contact is in fact long overdue. I believe the community feels that very strongly. Both the Governor and I are delighted that the visit has taken place. As 1 have already said, we hope that the visit will help in the process of greater co-operation between the two sides in the best interests of the people of Hong Kong.

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The day after I returned from Peking, I briefed Members of the Executive Council and then gave details of the visit to the public through the media. I believe the most important thing is that the visit took place, and that it has achieved the purpose of opening up a channel of communication between the two sides. The visit has been warmly welcomed by the public and in particular by the civil service. Now that the ice has been broken, I certainly hope that there will be more visits to China, both at my level and at the level of policy secretaries and other senior officials and that such visits in future will be announced in the usual way.

End/Wednesday, July 12, 1995

CS’s question-and-answer session in LegCo * * * * *

The following is a transcript of the question-and-answer session on the Chief Secretary, the Hon Anson Chan's visit to Beijing in the Legislative Council today (Wednesday):

Miriam Lau (through interpreter): I would like to ask the Chief Secretary when she was in Beijing, talking with the Chinese Government about the team designate and the civil service issues, have you ever mentioned to the Chinese Government Article 100 of the Basic Law, that is when the SAR Government is set up, various levels of the civil service, those who are in service in other words, would remain in service, have you ever reminded the Chinese Government of this article, that is according to Article 100 of the Basic Law, all public servants serving in Hong Kong Government could remain in employment. So, when they are to select the designate team, they don’t really have a lot of room for manoeuvring.

Chief Secretary: Mr President, we discussed in general the establishment of the Preparatory Committee, the selection of the Chief Executive Designate and his responsibility for nominating principal officials. We did not go into details except to the extent that I have already stated in my statement.

Dr Conrad Lam (through interpreter): Mr President. I am glad that the Chief Secretary has been able to enhance the communication with the Chinese Government. I am sure all in Hong Kong will welcome that. The Chief Secretary told us just now that Director Lu said the Chinese Government would do its best to ensure a smooth transition. I wonder if you have followed on that point and asked about the setting up of the provisional legislature and whether that would affect a smooth transition in Hong Kong. It seems that LegCo became invisible. It seems that you didn't mention it in your statement.

- 25 -

President: I don’t think 1 allow that within the terms of Standing Order 20.

Mr K K Fung: Mr President, 1 would like to ask the Chief Secretary this. She said she met Director Lu and Vice-Premier Qian and then they talked about the Preparatory Committee and possible future co-operation with that committee. Can you tell us whether you mentioned if civil servants are allowed to join the Preparatory Committee and what is the mode of co-operation?

Chief Secretary: Mr President, both sides agreed on the need for co-operation with the Preparatory Committee. As to the specific form of co-operation, these are of course matters which will have to be discussed in detail at a later stage through the proper forum.

Mr Fred Li (through interpreter): Mr President, of course we welcome the fact that the Chief Secretary has communication with Chinese officials. But I would like to ask Mrs Anson Chan this: before she went to Beijing, if she had informed the people of Hong Kong there would be such a visit would it be better that she gave only an explanation afterwards?

President: That doesn't really arise under Standing Order 20. Any more questions? Miss Emily Lau again?

Miss Emily Lau (through interpreter): Mr President, I would like to ask the Chief Secretary with regard to this secret visit. Did you raise it or did the Chinese side made that a condition before you would be allowed to go on the visit?

President: I won't allow that under Standing Order 20. Any more questions? Yes, Mr Eric Lee.

Eric Lee (through interpreter): Mr President, the Chief Secretary said, it might have been better if she had told the people earlier. But then she said in future there would be frequent contacts with the Chinese side. Have you discussed with Director Lu how you would conduct these future contacts?

Chief Secretary: Mr President, we do not discuss in detail the form that such regular contacts might take. But it was agreed by both sides that senior officials, particularly at policy secretary level, when they visit Beijing as part of the Sponsor Visitors Programme or indeed on other duties that they should make a point of calling on Mr Lu Ping and his deputies.

End/Wcdnesday, July 12, 1995

26

Employment (Amendment)(No 2) and (No 3) Bill 1995 *****

Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, at the resumption of second reading debate for Employment (Amendment)(No 2) Bill 1995 and the Employment (Amendment)(No 3) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

May I first of all begin by thanking Members who have given credit to the Administration in trying to reach a consensus on these two proposals. I fully appreciate these comments and hope this will set a pattern for future co-operation between us on labour issues and other issues.

I would like to speak on both bills in definition. On the No. 2 Bill, the Long Service Payment scheme was introduced in 1986 to provide financial protection to long-serving and elderly employees who were dismissed. Since it came to operation, the Scheme had been amended six times to take into account the changing needs of the labour market and developments of our economy. As Members recall, the last major amendment exercise was done in January this year, when a comprehensive and forward-looking package to increase both the length of reckonable service and the absolute payment ceiling within a definite timetable was devised and agreed. This was then followed by the increase in the monthly wage ceiling for calculating LSP through a resolution of this Council in June. These and all previous amendments were invariably made in accordance with the broad consensus between representatives of employers and employees in the Labour Advisory Board (LAB) — a long established and well-tested forum for discussions of labour matters affecting both employers and employees. We are very pleased to see that in this case, this Council has supported the approach to consult the LAB first before coming back to this Council.

During the past three months, we have thoroughly consulted the LAB on the proposals in the Bill and the Board subsequently agreed a consensus on each of them.

First, on the qualifying years of service for eligibility for LSP on grounds of old age, the LAB has proposed to reduce the qualifying years of service from 10 to 5 while maintaining the retirement age at 65, as it would improve the financial protection for the elderly employees without adversely affecting labour supply by inducing pre-mature retirement.

27

Second, on the percentage reduction in the amount of LSP for employees under 45 years old and with less than 10 years of service, the LAB is against removing it right away as proposed, but has agreed to discuss this matter further. A review is underway and we will be seeking LAB’s advice later in the year.

Third, on the proposal to grant LSP to those employees who resign after working for 10 years, the Board has rejected it, on the ground that it goes clearly against fundamental principle of the LSP scheme, which is to provide long-serving employees with financial protection in the event of dismissal, instead of providing employees with compensation upon resignation.

The LAB's consensus regarding each of the above proposals represents a fair balance between the interests of both employers and employees. As such, the Government will support Committee Stage Amendments.

I turn now to the important No 3 Bill. Paid maternity leave for pregnant female employees was first introduced together with employment protection under the Employment Ordinance in 1981. Like the Long Service Payment Scheme, further improvements were made to the relevant provisions in the ensuing years following the broad consensus reached between employer representatives and employees at the LAB. For this reason, the Administration again consulted the LAB on these proposals.

*

It has long been the Government's intention to improve the package of measures on maternity protection to bring them in line with the relevant International Labour Conventions. To this end, we have recently completed a comprehensive review on all the existing provisions for maternity protection, which include the qualifying service for unpaid maternity leave and for employment protection, arrangements regarding duration of maternity leave and penal damages for wrongful termination of pregnant employees. We have just consulted the LAB last month on a series of recommendations to improve them.

It was in the context of that consultation to these proposals that we sought the LAB's advice on the proposal to give full-pay maternity protection leave to pregnant female employees. The LAB agreed that the rate of maternity leave pay should be increased from two-thirds to four-fifths of the female employees' wages, instead of full-pay, after taking into account the interests of employees, the financial impact on employers, and practices in neighbouring countries. The Administration will support Committee Stage Amendment to the Bill which conforms with the advice reached by LAB.

Thank you.

End/Wednesday, July 12. 1995

28

Provisional Airport Authority Annual Report

*****

Following is the speech by the Financial Secretary, the Hon Sir Hamish Macleod. on the Provisional Airport Authority Annual Report in the Legislative Council today (Wednesday):

Mr President.

In accordance with section 10 of the Provisional Airport Authority Ordinance, the Annual Report and audited accounts of the Provisional Airport Authority for the year ending 31 March 1995 are tabled today. As in previous years, the Report contains a detailed review of the Authority's activities covering events up to June this year.

The Report details further intense activity by the Authority in the development of Hong Kong's new airport. Good progress has been made in construction, operational planning and negotiation with private sector investors on the provision of essential airport support services. I would like to take this opportunity to thank the Board, the management and the staff of the Authority for their very hard work over the year.

The year under review also saw a number of positive developments on the institutional arrangements under discussion between the British and the Chinese sides of the Airport Committee of the Sino-British Joint Liaison Group. These include the agreement reached on overall financing, the arrangement for the granting of the airport island to the Authority, the Airport Authority Bill and. recently, the very welcome agreement on the Financial Support Agreement for the airport and air cargo franchises.

The resumption of the Second Reading debate on the Airport Authority Bill is now scheduled for 19 July. I very much hope that the Bill will be supported by Members, which will mean that this Report will in fact be the last one issued by the provisional body. More importantly, with the enactment of the Airport Authority Ordinance, the Authority will be able to keep up the momentum of work.

29

Looking back, I recall that when I first took up the chairmanship of the Provisional Airport Authority in September 1991, Chek Lap Kok was only a 302-hectare granite outcrop with its tiny neighbour, Lam Chau, nearly two kilometres away. The Provisional Airport Authority then had a very modest staff establishment. We have moved a long way forward since then. With the formation of the airport island, the passenger terminal building rising steadily from its foundations and work commencing on the southern runway, the physical progress is there for all to see. At the same time, the Authority is building up its organisation and staff for the tasks ahead. The focus increasingly will shift from construction to operational and commercial planning.

It gives me mixed feelings to leave the helm of this major project at this juncture. I am glad that past uncertainties are behind us. Nevertheless, with a project of this size, the Authority will be facing more challenges ahead. I have no doubt that it will meet them admirably and will move full speed ahead to prepare for airport opening in April 1998.

End/Wednesday, July 12, 1995

Wills (Amendment) Bill 1994: second reading * * * * ♦

Following is the speech of the Secretary for Home Affairs, Mr Michael Suen, at the resumption of the second reading of the Wills (Amendment) Bill 1994 in the Legislative Council today (Wednesday):

Mr President,

I would like to thank Dr the Honourable Philip Wong Yu-hong, Convenor of the Bills Committee to study the Wills (Amendment) Bill 1994, Intestate’s Estates (Amendment) Bill 1994 and Inheritance (Provision for Family and Dependants) Bill and the other Members of the Bills Committee for their work in scrutinising the three Bills. I'he dedicated efforts of the technical sub-committee of the Bills Committee under the chairmanship of the Honourable Ronald Arculli desen e particular mention, fhc meticulous work of the Sub-committee and the Committee Stage Amendments that have arisen from that work will ensure that the legislation is suitably adapted to Hong Kong’s needs.

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While society in Hong Kong has developed considerably during the last twenty years, our law of inheritance has remained largely unchanged. It was against this background that the Law Reform Commission in its report on the "Law of Wills, Intestate Succession and Provision for Deceased Persons' Families and Dependants" recommended changes to the law of inheritance. The changes recommended by the Law Reform Commission aim both to bring our inheritance law into line with current day community needs and expectations and to remove various anomalies that had come to light during its implementation. The three Bills that I am going to recommend to Members today, namely, the Wills (Amendment) Bill 1994, the Intestates’ Estates (Amendment) Bill 1994 and the Inheritance (Provision for Family and Dependants) Bill, seek to implement the majority of the recommendations of the Law Reform Commission.

The first of the three Bills is the Wills (Amendment) Bill 1994. As I mentioned when I introduced this Bill into this Council, its main aims are to relax the formalities for making wills and to give the court new powers to validate, interpret and rectify wills.

Members of the Bills Committee expressed concern over the proposed repeal of the provision of the Wills Ordinance that gives special treatment to a will of a Chinese testator written in Chinese. Currently, such wills are valid even if they are not executed in accordance with the formalities. Let me take this opportunity to reiterate that the proposed repeal aims to prevent abuse of the existing provision, which lacks a formal check on the authenticity of such wills. It is to be replaced by a general power of the court to admit to probate wills not executed in accordance with the formalities but which the court is nevertheless satisfied embody the testamentary intentions of the deceased. It should also be noted that the application provisions of the Bill provide for the validity of wills made before its commencement, including wills in Chinese of Chinese testators, to be unaffected by its enactment.

The Bill also gives effect in Hong Kong to relevant provisions of the Convention on International Wills. Pending ratification of this Convention by the UK, we have proposed and the Members of the Bills Committee agree that it is appropriate for Hong Kong to follow the UK in delaying commencement of the relevant provisions .

With these remarks. Mr President, I recommend the Wills (Amendment) Bill 1994 to Members.

End/Wednesday. July 12. 1995

31

Wills (Amendment) Bill 1994: committee stage

♦ * ♦ ♦ ♦

Following is the speech by the Secretary for Home Affairs, Mr Michael Suen, at the committee stage of the Wills (Amendment) Bill 1994 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that clause 4 be amended as set out in the paper circulated to Members.

Clause 4 provides for the repeal of sections 8, 11 and 12 of the Wills Ordinance on the grounds that they have become redundant as they are now part of the general law. Members of the Bills Committee however proposed to retain them because the relevant general law could change in the future, making it necessary to re-enact the sections concerned. It is therefore proposed that clause 4 be deleted.

Mr Chairman, I beg to move.

End/Wednesday, July 12, 1995

Intestates’ Estates (Amendment) Bill 1994: second reading *****

Following is the speech by the Secretary for Home Affairs, Mr Michael M Y Suen, in the resumption of the second reading debate of the Intestates’ Estates (Amendment) Bill 1994 in the Legislative Council today (Wednesday):

Mr President,

As I indicated in the resumption of the second reading debate on the Wills (Amendment) Bill 1994, the Intestates’ Estates (Amendment) Bill 1994 arises from the recommendations of the Law Reform Commission on reform of the law of inheritance in Hong Kong.

32

The main effect of the Bill is to improve the inheritance position of a surviving spouse of someone who has died intestate. For example, it provides for a surviving spouse to take the personal chattels absolutely, instead of the current right to require them to be appropriated in or towards satisfaction of the statutory sum to which he or she is entitled. The Bill also gives a surviving spouse the right to appropriate the intestate’s interest in the matrimonial home in or towards satisfaction of his or her entitlement in the estate. In addition, the Bill increases substantially the amounts of the statutory legacies payable to a surviving spouse from the deceased's estate: from $50,000 to $500,000, where there is surviving issue; and from $200,000 to $1,000,000, where there are other surviving relatives but no issue. These figures were last revised in 1983 and have been considerably eroded by inflation since then.

When considering the Bill, Members of the Bills Committee suggested that the levels of the statutory legacies should be reviewed at regular intervals. We agree with this suggestion and propose to review the levels of the statutory legacies at intervals of no less than two years.

I

With these remarks, Mr President, I recommend the Intestates' Estates (Amendment) Bill 1994 to Members.

End/Wednesday, July 12, 1995

Intestates' Estates (Amendment) Bill 1994: committee stage *****

Following is the speech by the Secretary for Home Affairs, Mr Michael M Y Suen, in moving the Committee Stage of the Intestates' Estates (Amendment) Bill 1994 in making Amendments to Clauses 5, 7, 10, 11, 14 and 15 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that the clauses specified be amended as set out in the paper circulated to Members.

The amendment to clause 5 explicitly provides that "the net sum payable" under clause 6 of the Bill refers to the "statutory legacies" payable to a surviving spouse under clauses 4(3) and 4(4).

33

The change of wording to clause 7 is to ensure consistency of treatment between a surviving spouse and other beneficiaries in offsetting an interest in an intestate's estate acquired in the jurisdiction against an interest acquired in Hong Kong.

The amendments to clauses 10 and 11 provide for changes in Chinese versions of the words "representation" and "personal representatives".

The changes to clauses 14 and 15 aim to replace English paragraphs in the Chinese version of the Bill arising from the subsequent promulgation of the authentic Chinese versions of the Legitimacy Ordinance and Adoption Ordinance, which are referred to in the clauses concerned.

Mr Chairman, I beg to move.

End/Wednesday, July 12, 1995

Intestates' Estates (Amendment) Bill 1994: new clauses *****

Following is the speech of the Secretary for Home Affairs, Mr Michael Suen, at the committee stage of the Intestates' Estates (Amendment) Bill 1994 in the Legislative Council today (Wednesday):

Mr Chairman,

Addition of New Clauses

I move that the heading before new clause 15A, new clauses 15A and 15B as set out in the paper circulated to Members be read the second time.

These additions are consequential upon the repeal of section 11 of the Intestates' Estates Ordinance and section 75(1 )(a) and (3) of the Probate and Administration Ordinance. Explicit references to these sections made in the New Territories Land (Exemption) Ordinance are removed to avoid referring to sections that have been repealed.

Mr Chairman, I beg to move.

End/Wednesday, July 12, 1995

34

Inheritance Bill: second reading

Following is the speech of the Secretary for Home Affairs, Mr Michael Suen, at the resumption of the second reading of the Inheritance (Provision for Family and Dependants) Bill in the Legislative Council today (Wednesday):

Mr President,

<■

The Inheritance (Provision for Family and Dependants) Bill is the last of the three Bills aimed at effecting a general reform of the law of inheritance based on recommendations of the Law Reform Commission. It is a stand alone Bill to replace the Deceased’s Family Maintenance Ordinance. The Bill provides for the court to order reasonable financial provision from the estate of a deceased for certain classes of person on application. In effect, it provides a safety net for deserving persons who have not been properly provided for either in a will or under the law of intestacy.

The main effects of the Bill are to widen the scope of persons eligible to apply for financial provisions from a deceased’s estate and to give the court greater powers in making orders for such financial provision. As regards the scope of persons eligible to apply to the court for financial provision from a deceased’s estate, the main change compared with the Deceased's Family Maintenance Ordinance is the inclusion of a new class of persons who, although they are not close relatives of the deceased, were dependent either wholly or partly on him or her.

In considering the Bill, Members of the Bills Committee were concerned that the greatly increased scope of potential applicants coupled with the extended powers of the court could create undue difficulties in the settlement of estates. To meet this concern, Members proposed that certain categories of eligible, applicants should be subject to a requirement of having been wholly or substantially maintained by the deceased prior to his or her death. The proposed requirement would apply to a former spouse, parents, an adplt child other than one with a physical or mental disability, a brother or sister and any. other person. Dr. the Honourable Philip Wong, the Chairman of the Bills Committee will move an amendment during the Committee Stage of this Bill to give effect to this proposal, which we have accepted.

With these remarks, Mr President, I recommend the Inheritance (Provision for Family and Dependants) Bill to Members.

End/Wednesday, July 12, 1995

7

35

Inheritance Bill: committee stage ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Home Affairs, Mr Michael Suen, at the committee stage of the Inheritance (Provision for Family and Dependants) Bill in the Legislative Council today (Wednesday):

Mr Chairman,

I move that the clauses specified be amended as set out in the paper circulated to Members.

The amendments to clause 5 provide for changes to clauses 5(4) and 5(5). The change to clause 5(4) is proposed further to the amendment to clause 3 of the Bill already passed by this Council. The change to clause 5(5) is a technical amendment, which replaces ’’and” with "or” when it first appears.

The amendments to clause 10 allow the court to take into account all the circumstances of a case in treating a death bed gift as part of the net estate of a deceased following an application under the Ordinance. For example, the court would be able to take account of any diminution in the value of gift following the death of the deceased.

The amendment to clause 11 provides for a new sub-section (5) which provides that the clause should only apply to those joint tenancies entered into after the commencement of the Bill. Under the general law, property under a joint tenancy automatically becomes the property of the other person on the death of one of the joint tenants. In other words, it is not normally part of the deceased’s estate. Clause 11 provides for such property to be treated as part of the deceased's net estate for the purpose of the Ordinance. Members of the Bills Committee proposed that this should only apply to joint tenancies created after the commencement of the Bill as joint tenancies already in existence have not been made in the expectation that the property concerned would be so treated.

Clause 16 is amended at the suggestion of the Bills Committee to remove the time limit for an application under clause 3 of the Bill made by a former spouse of the deceased. This is proposed as under Hong Kong's circumstances it would not normally be possible to comply with the specified time limit.

The amendment to clause 14 deletes a redundant phrase from the Chinese version of the Bill.

36

The amendments to clauses 6, 11(1), 11(3), 22 and 26 provide for changes in the Chinese versions of the words "representation" and "property".

Mr Chairman, I beg to move.

End/Wednesday, July 12, 1995

Inheritance Bill: new clauses *****

Following is the speech of the Secretary for Home Affairs, Mr Michael Suen, at the committee stage of the Inheritance (Provision for Family and Dependants) Bill in the Legisl'ative Council today (Wednesday):

Mr Chairman,

Addition of New Clauses, .<

I move that the heading before new clause 27A, new clauses 27A, the heading before new clause 28A, new clauses 28A and 28B as set out in the paper circulated to Members be read the second time.

These new clauses are consequential on the repeal of the Deceased's Family Maintenance Ordinance. They change references to the Deceased's Family Maintenance Ordinance in other Ordinances to the Inheritance (Provision for Family and Dependants) Ordinance.

Mr Chairman, I beg to move.

End/Wednesday, July 12, 1995


37

Merchant Shipping (Liner Conferences) Bill ♦ * * * *

Following is the speech by the acting Secretary for Economic Services, Mrs Elizabeth Bosher, at the committee stage of the Merchant Shipping (Liner Conferences) Bill in the Legislative Council today (Wednesday):

Mr President,

I move that the clauses specified be amended as set out in the paper circulated to Members.

Members will recall that the Merchant Shipping (Liner Conferences) Bill is part of our on-going exercise to localise UK legislation applying to Hong Kong so that the existing system of laws will continue after 1997. The Bill will implement in Hong Kong legislation the Convention on the Code of Conduct for Liner Conferences. The Code establishes rules designed to ensure a balance of interests between suppliers and users of liner shipping services; to avoid discrimination against shipowners and shippers of the foreign trade of any country; and to ensure transparency of information to interested parties.

All the proposed amendments are changes to the Chinese text to remove possible discrepancies in meaning between the two texts of the Bill.

Mr Chairman, the Merchant Shipping (Liner Conferences) Bill is the last major localisation exercise in respect of merchant shipping legislation. Subject to Members’ approval today, we will substantially completed the localisation of the whole body of maritime law, barring some minor tidying up and adaptation work. This is a most significant achievement for shipping and is crucial to Hong Kong’s economy. We are the world's eighth largest trading economy: some 90 per cent of that trade is handled through the port. We must ensure the present successful system of shipping regulation can continue beyond 1997, as enshrined in the Joint Declaration. This exercise will help achieve this.

It has been five years since the enactment of the first item of localised shipping legislation. Looking back, the process has been painstaking and at times arduous. I would like to take this opportunity to thank Members for their contribution to the completion of this programme.

Mr President, I beg to move.

End/Wednesday. July 12, 1995

38

Electoral Provisions Bill 1995

*****

Following is the speech by the Secretary for Constitutional Affairs, Mr Nicholas Ng, at the resumption of the second reading of the Electoral Provisions (Miscellaneous Amendments) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I would like to take this opportunity to reiterate the government’s position on the reduction of qualifying residential period for election candidates from ten years preceding nomination to three years.

The rationale for imposing some form of residential requirement on election candidates is to ensure that candidates will have good knowledge of Hong Kong. The qualifying period should be sufficiently short to meet the Bill of Rights requirement, but sufficiently long to ensure that candidates have adequate first-hand and up-to-date knowledge of local conditions. Wc believe that a qualifying period of three years immediately preceding the date of nomination strikes the right balance.

We have great reservation on proposals to further reduce the qualifying period to less than three years, for example, to 180 days as proposed by Mr Andrew Wong. Such proposals would create prospects for people who have only resided in Hong Kong for an extremely short period of time to become candidates and, if elected, to sit on our representative institutions. Obviously, it is highly questionable whether a person who has resided in Hong Kong for only 180 days, or even a year, will have acquired a thorough understanding of the community’s needs and aspirations, as well as the many and varied complex issues it faces. Thorough enough, that is, to be able to represent the interests of his constituents, and to make important decisions affecting the long-term interests of Hong Kong. And we must remember that Hong Kong is a dynamic, sophisticated metropolitan which is rapidly changing and evolving.

Some people would say that if the electors want someone who has been in Hong Kong for only a few months to represent them, then so be it. Mr President, I beg to differ. Electors will, of course, have the final say on who their representatives are; this is what open and fair elections are all about. But any responsible governments anywhere are duty bound to prescribe some minimum qualifications for candidature, so as to protect the integrity of the electoral process and the overall interests of the community. In our present case, a qualifying residential period of three years is precisely to serve this purpose.

39

It is, of course, the case that the qualifying residential period for candidature vary from one jurisdiction to another. But we must be extremely careful in drawing any direct comparison between our own requirement, and those overseas. Circumstances differ from one place to another, and these must be taken into account when deciding on the appropriate qualifying period.

Mr President, for the above reasons, the three ex-officio Members will vote against Mr Andrew Wong's amendment to further reduce the qualifying residential period.

End/Wednesday, July 12, 1995

Securities (Insider Dealing) (Amendment) Bill 1995 *****

Following is the speech of the Secretary for Financial Services. Mr Michael Cartland, at the committee stage of the Securities (Insider Dealing) (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr Chairman,

Clause 9

I move that clause 9 be amended as set out in the paper circulated to Members.

I propose that clause 9 be amended so that persons who by their own acts or omissions caused or brought about the Tribunal to inquire into their conduct subsequent to the institution of an inquiry or during the course of that inquiry will not be entitled to an award of costs by the Insider Dealing Tribunal. This is an extension of the provision ready in the Bill which denies an award of cost to any person who, by his acts or omissions, caused or brought about the institution of the inquiry in the first place.

Mr Chairman, I beg to move.

40

Nqw Clause 2A

Mr Chairman,

I move new clause 2A as set out in the paper circulated to Members be read the second time.

This is a minor editorial amendment to the Chinese text of section 4(1 )(c) of the Ordinance which seeks to bring the Chinese text into line with the corresponding English text.

Mr Chairman, I beg to move.

Mr Chairman,

I move that new clause 2A be added to the Bill.

End/Wednesday, July 12, 1995

MTRC and KCRC's localisation policy *****

Following is a question by Dr the Hon Samuel Wong Ping-wai and a reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

In his reply to a LegCo question asked on 10 March 1993, the Secretary for Transport stated that the Mass transit Railway Corporation (MTRC) and the Kowloon Canton Railway Corporation had adopted a policy of localisation and that the two corporations had offered training programmes for their staff and drawn up succession plans to ensure that local talents were trained to meet the objectives of the corporations. The Secretary for Transport further stated that the two corporations would continue with this policy. In this connection, will the Government inform this Council whether it is aware of the progress which the M IRC has made in localising its senior management, particularly the salaried directors apart from its Chairman?

41

Reply:

Mr President, "'*J • ... .

Apart from the Chairman of the MTRC, who is appointed by the Governor under Section 4 of the MTRC Ordinance, all other appointments are a matter for the Corporation itself to determine. In this respect, the Corporation now has a clear-cut policy of appointing suitably-qualified local candidates for vacancies which may arise. The Corporation will only resort to overseas recruitment when local candidates are not available. Indeed, in keeping with the principle of this policy, the MTRC has, since December 1993 offered totally equal terms to new employees, regardless of whether they are recruited locally or from overseas.

As regards progress in localising its top management the most significant step taken is that, as Honourable Members know, in April this year a local candidate was recruited and appointed to fill the position of the Chairman of the Corporation. Apart from the Chairman, it is a fact that at present only one of the seven Executive Directors, is a local appointee.

It should be noted that all the Executive Directors and by far the majority of the employees in managerial and professional posts have been engaged on permanent terms of service. Under the Corporation's localisation policy, expatriates who leave the service on retirement or for other reasons will be replaced as far as possible by locals who have the necessary qualifications and experience. In this respect, one of the expatriate Directors will be retiring in the middle of next year, and the Corporation's firm intention is to appoint a local replacement.

,V '

End/Wednesday, July 12, 1995 z ;

42

Quality control of industrial protective equipment *****

Following is a question by the Hon Fred Li Wah-ming and a reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday): ->• >

Question:

At present, workers can easily purchase industrial protective equipment such as dust masks, goggles, helmets and other items in the open market. However, the quality of such protective equipment is of uneven standard, and some of these items cannot even meet the required safety standards. In view of this, will the Government inform this Council:

(a) whether it has conducted regular tests on the quality of various items of industrial protective equipment available in the open market to check if they meet the required safety standard; if so, what the details are; if not, why not?

(b) what specific measures the Government has put in place to educate factory-owners, site contractors and workers on how to choose and use protective equipment which meets the required safety standard; and

(c) what interim and long-term measures does the Government have to monitor both the manufacturers and the retailers, so as to curb the indiscriminate selling of protective equipment which does not meet the required safety standard?

Reply:

Mr President,

(a) The Occupational Safety and Health Council (OSHC) commissions tests on industrial protective equipment to see if they meet specified safety standards. Recent examples of such tests are those on goggles, spectacles and face shields. The OSHC also has plans to conduct more tests on personal protective equipment.

43

(b) The Labour Department promulgates approved personal protective equipment to protect the health and safety of workers and provides information and advice to factory proprietors, contractors and workers on approved and suitable equipment.

Under the Factories and Industrial Undertakings Ordinance, it is the duty of every factory proprietor and contractor to procure approved or suitable types of protective equipment for his employees and to provide information, training and supervision to them on the proper use of these equipment. The Labour Department has published a large number of pamphlets, leaflets, brochures and posters on the need, selection and use of such equipment.

The Labour Department's Industrial Safety Training Centre also organises safety training courses on various aspects of industrial safety including the proper use of protective, equipment. The OSHC also organises training courses on personal protective equipment.

Besides the Information Services Department, the Labour Department and the OSHC run annual series of promotion and publicity activities on industrial safety. The proper use of personal protective equipment is always one of the important feature of these activities.

(c) The Labour Department at present controls the purchase and use of substandard protective equipment at the user's end through enforcement of the Factories and Industrial Undertakings Ordinance. When a substandard, personal protective equipment is found in use in an industrial undertaking or on a construction, site, the proprietor or contractor concerned will be given appropriate advice and suitable warning and, if necessary, prosecuted for contravening the relevant regulations.

In the longer term, the vigorous enforcement of the Factories and Industrial Undertakings Ordinance, together with sustained promotion, publicity and educational campaigns on the use of proper protective equipment, should eliminate from the market those items of equipment which fall below required industrial safety standards.

End/Wednesday, July 12, 1995

44

Damage to marine ecology by dredging works

*****

Following is a question by Rev the Hon Fung Chi-wood and a reply by the Secretary for Works, Mr James Blake, in the Legislative Council today (Wednesday):

Question:

In order to cope with the new airport project and other reclamation works, the Government has carried out large-scale dredging of sea sand in Hong Kong waters, and plans to continue with such operations. As such dredging works will cause tremendous damage to marine ecology, will the Government inform this Council:

(a) of the volume of sea sand obtained from dredging since 1991 and the volume expected to be dredged in the coming few years; whether an assessment has been made on the damage caused by such operation to the marine ecology of Hong Kong? If so, what the results are?

(b) of the details of purchasing sand from China at present, the progress made so far in dredging sea sand in Chinese territorial waters, and the cost of such sand in comparison with that dredged in Hong Kong waters;

(c) whether consideration will be given to using construction wastes or earth excavated from the hillside as the filling material for reclamations, so as to reduce the damage done to marine ecology; and

(d) why such reclamation works rely on sea sand dredged in local waters and not on other filling materials supplied locally or abroad?

Reply:

Mr President,

I would like to point out, first of all, that dredging of marine sand does not cause tremendous damage to the marine ecology, as alleged in the question. So far, we have dredged less than 2.5% of Hong Kong’s seabed area, and there has generally been little overall effect on the marine ecosystem of Hong Kong. I will answer the four-part question as follows.

45

(a) The estimated volume of marine sand dredged between 1992 and the end of 1995 is about 251 million cubic metres. The figures for 1991 are unavailable. This is approximately equivalent to the material available from 14 quarries each the size of the Anderson Road Quarry, scarring our visible hillsides. It is estimated that a total of 216 million cubic metres of marine sand will be required up to 2000. We plan to meet this future need by supply from Hong Kong and China.

The area of seabed that has been subjected to the impact of dredging and mud disposal, represents approximately less than 2.5% and 1.5% respectively of the total area of seabed within the borders of Hong Kong. All marine borrowing and disposal activities are subject to environmental impact assessments and strict controls. Seabed surveys have established that apart from the limited areas directly involved, the seabed ecosystem is essentially unaffected. For the areas actually subjected to dredging, these are restored to original seabed level by controlled mud dumping. Recolonisation starts almost straight away, and the newly deposited seabed mud supports an early stage ecosystem after a few months.

(b) In the past two years some 12 million cubic metres of marine fill materials were obtained by contractors from sources outside Hong Kong. On 7 July this year, Members approved funds for the commencement of the Fill Management Study phase VI. One of the key elements of this study will be to continue the investigation of potential fill sources outside Hong Kong, and available for import into Hong Kong. Contractors importing marine sand from China are subject to license conditions, as well as needing to enter into commercial arrangements, involving suppliers and the Chinese authorities. The cost will vary with transportation distance, site conditions, operational constraints and market price fluctuations. The fact that imported fill is being increasingly used by contractors demonstrates that cost can be comparable or perhaps lower than equivalent sourcing from Hong Kong.

(c) Suitable construction waste and land based fill is used for our reclamations. For example the reclamations at Aldrich Bay and Tseung Kwan O in part are currently being formed using material deposited by controlled public dumping. 40% of the platform for the new airport at Chek Lap Kok was formed from marine sand, and the balance from land excavation.

46

Land borrow activities on balance are environmentally much more stressful and visually intrusive to the community than marine borrow activities. Land borrow activities invariably involve blasting, and despite site controls the noise and dust pollution factors can be substantial. Marine transport by single vessels carrying 8,000 cubic metres of fill each trip, with minimal noise pollution, is much more preferable to transportation on land, which would require 1100 dump trucks impacting on our roads to transport the same volume.

Land sourcing of fill nevertheless is possible, with appropriate environmental pollution mitigation measures in place, as example by the success at Chek Lap Kok and elsewhere. We will continue to obtain land fill, subject to appropriate environmental controls and economic considerations.

(d) In summary Mr President, the controlled use of our sea-bed for mtid-disposal and to provide filling material for reclamation, is on balance an appropriate means of minimising environmental impact on the community at large. Economically it is also justified. I agree that we must not rely only on local waters, and we actively allow the use of imported filling material for any of our reclamation contracts. Land sourced fill can be imported or obtained locally, subject of course to strict environmental and quality control.

End/Wednesday. July 12, 1995

47

Old age allowance * * * * *

Following is a question by the Hon Andrew Wong and a reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

At present, old age allowance applicants must have resided in the territory for at least 5 years within the period starting from 5 years immediately before the attainment of the qualifying age to the date of application, and absence from the territory during the 5-year period immediately before application must not exceed 280 days. According to cases handled by me, there have been some cases in which applications for the old age allowance made by senior citizens who have resided in the territory for decades were rejected simply because the applicants were intermittently absent from the territory for slightly more than 280 days during the 5-year period immediately prior to the date of application. In view of this, will the Government inform this Council:

(a) of the total number of applications which were rejected by the Social Welfare Department in the past 5 years on the grounds that the residence requirement was not met;

(b) of the reasons for using 280 days as the benchmark for residence calculation; and

(c) whether the existing practice which lacks flexibility will be reviewed with a view to relaxing the 280-day limit for absence from the territory or changing the residency requirement to one which requires an applicant "to be an ordinary resident in Hong Kong" for 5 years prior to the date of application, so that each case can be dealt with on its own merits?

48

Reply:

Mr President,

The Old Age Allowance (OAA) is a non-means-tested and non-contributory payment to elderly persons aged 65 and above. To be eligible for it, applicants must have resided in Hong Kong for at least five years (1,825 days) between the age of 60 and the date of application.

The 280-day absence rule referred to in the question works in practice as follows. If an application is made at 65 years of age, the applicant will be permitted to have been out of Hong Kong for a maximum of 280 days in the immediately preceding five-year period (in other words, to have a total residence of no less than 1,545 days rather than the full 1,825 days). In practice, for first applications made after 65 years of age, e.g. at 70 years of age, the applicant has to demonstrate that he or she has been resident in Hong Kong for a total of 1,545 days since reaching the age of 60 years.

Prior to April 1994, records of applications for OAA were kept manually and it would be very difficult and time-consuming to identify those applications which were rejected for not meeting the residence requirement. Since April 1994, records of applications have been kept in the computerised Social Security Payment System.’ According to our computerised records, 1,238 applications were rejected in 1994/95 on the grounds that the residence requirement had not been met. This represents about 2% of the total number of the applications made.

The reason for selecting a clear benchmark for the absence rule, measured in days rather than a more subjective test of e.g. ’’ordinary residence”, is clear. The determination of ordinary residence is a matter of fact and degree which must be tested in each individual case. This would require the exercise of judgment and discretion by the staff of Social Welfare Department in each individual case, which could lead to inconsistent standards and unfairness.

Having then accepted the need for a clear benchmark, it is, nevertheless, not possible to set the number of days involved in any logical or scientific way. The 280 days selected and now in force would allow a person to be out of Hong Kong for as long as 8 weeks every year for each of the 5 years concerned. It would seem excessive for an elderly person, unlikely to have any business commitments overseas, to be regularly away from Hong Kong for longer than this. Indeed, evidence shows that very few elderly people need to be away from I long Kong for more than this as can be demonstrated by the fact that only 2% of applicants in 1994/95 failed to meet this test.

49

The test is there to ensure that those benefiting from this non-means-tested and non-contributory allowance are genuinely elderly citizens of Hong Kong - not persons visiting Hong Kong simply to take advantage of this allowance. Our residence requirements are already generous by international standards. For example, in Australia, Canada and New Zealand, the residence requirement for old age pensions is 10 years.

In view of these considerations, I can see no case for relaxing or reviewing the existing residential eligibility criteria for the Old Age Allowance.

End/Wednesday, July 12, 1995

Fixed penalty tickets ♦ * * * ♦

Following is a question by the Hon Zachary Wong Wai-yin and a reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

The Police have adopted, for sometime the measure of issuing Fixed Penalty Tickets without prior warning to the drivers of vehicles illegally parked and waiting in the Central and Tsim Sha Tsui districts. In this regard, will the Government inform this Council:

(a) of the breakdown by month of the number of Fixed Penalty Tickets issued since the adoption of such a measure, together with the total number of motor vehicles which have been issued with more than one Fixed Penalty Ticket and the highest number of Fixed Penalty Tickets issued to the same vehicle; and

(b) whether such a measure has achieved the result expected; if not, what further measures the Government will take to deter drivers from illegal parking and waiting?

50

Reply:

Mr President,

The issue of fixed penalty tickets for traffic offences is, understandably, a controversial subject. No one likes to receive such a ticket. The Police on the beat and traffic wardens have a very difficult job. But tough enforcement action is essential in busy districts. The instruction to the officers concerned is that they should take immediate action to issue fixed penalty tickets to the drivers of vehicles which are illegally parked or waiting in areas where this is likely to cause serious disruption to traffic. This includes Central and Tsim Sha Tsui. This practice has been followed since August 1993. On the other hand, for minor traffic offences committed in less busy areas, a more lenient approach is adopted with the drivers often first being given warnings.

Statistics on the total number of fixed penalty tickets issued for parking offences in Central and Tsim Sha Tsui have been provided to Members in the annex to the written version of my reply. The Police have not kept separate statistics on the numbers of fixed penalty tickets issued to the same vehicle, since such information is not required for operational reasons nor would such information be of any particular use.

The likelihood of receiving a fixed penalty ticket does act as a deterrent to the majority of motorists and the Police are satisfied that the practice of issuing tickets without prior warning has been effective in helping to keep the traffic moving in the busiest and most congested districts.

Mr President, Honourable Members may wish to note that we intend to review the level of fixed penalty fines later this year, to determine whether they are sufficient to maintain the deterrent effect. In addition, we are now considering the extension of no-stopping restrictions, including banning goods vehicles from loading and unloading during the daytime in busy areas, as further measures aimed on maximising road capacity and maintaining a free flow of traffic.

51

Annex

Fixed Penalty Tickets Issued for Parking Offences in Central and Tsim Sha Tsui from August 1993 to May 1995 n.;' b y; . . ,

Central Tsim Sha Tsui

1993 August 8,024 9,499

Sept 7,991 9,037

Oct 8,934 9,367

Nov 9,128 8,516

Dec 8,250 8,465

V'.i J

1994 Jan 9,244 8,088

Feb 6,720 6,094

Mar 8,233 8,886

Apr ... 9,196 8,094

May 9,175 10,738

l Jun 7,793 8,069

Jul 7,126 8,418

Aug 8,205 8,795

i Sept 8,322 8,801

Oct 8,495 9,907

Nov 8,642 10,050

Dec ■ 8,222 10,607

1995 Jan 8,326 11,810

Feb 7,309 9,638

Mar 8,269 11,564

Apr 6,551 11,603

May J 7,654 7,511

r • • • • • . . • :

End/Wednesday, July 12, 1995

52

Proposed licensing examination for medical graduates

*****

Following is a question by Dr the Hon Conrad Lam and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

Regarding the Medical Council's proposal that medical graduates from the local universities have to sit and pass a Universal Licensing Examination after 1997 before they can practise medicine in the territory, will the Government inform this Council:

(a) whether it is aware of the reasons and background of the Medical Council's proposals;

(b) of the merits and demerits of the proposal; and

(c) whether it knows if adequate consultation has been conducted by the Medical Council before proposing the change; if so, will the Government ask the Medical Council to provide details of the consultation process and its outcome; if not, why not?

Reply:

(a) The Chairman of the Medical Council has briefed the Government on the reasons and background of the Medical Council's proposal, which is that medical graduates of the two local universities should be given a grace period of five years, after which they would be required to sit for and pass the Licensing Examination before they could practise in Hong Kong.

(b) The merits of requiring local graduates to sit for the Licensing Examination are:

(i) it would provide fair and equitable treatment for all medical graduates, irrespective of where they are trained; and

53

(ii) it would enable an assessment be made on the professional standard and competence of an individual rather than the institution from which the individual graduated.

The demerits of the proposal are:

(i) in conducting the Licensing Examination, local universities’ expertise inevitably will be required. There would be a duplication of efforts and resources in organising both the Licensing Examination and the universities' own graduate examinations; and

(ii) it may be undesirable to require local medical graduates to sit for two examinations of comparable standard and to be assessed by the same group of examiners at the same time.

(c) The two universities as well as the Medical Council have put forward their views in written submissions and in person to the Bills Committee to study the Medical Registration (Amendment) Bill 1995. The written submissions were dated 16 June 1995 (the Medical Council), 26 June 1995 (the University of Hong Kong) and 30 June 1995 (the Chinese University of Hong Kong). The Bills Committee saw representatives of the two universities on 3 July 1995 and the Chairman of the Medical Council on 6 July 1995.

End/Wednesday, July 12, 1995

Job vacancy statistics *****

Following is a question by the Hon Martin Barrow and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

54

(a)

(b)

Reply:

(a)

why the job vacancy figures are published 3 months after the unemployment figures; and

whether it will take steps to produce the two sets of figures at the same time so that there is a better chance of reducing the mismatch?

Job vacancy statistics as at the end of a quarter are released about three and a half months after the reference date. As for unemployment statistics, the provisional estimate of the overall unemployment rate for a three-month period is released about two weeks after the end of the period. However, compilation of the final estimates of unemployment together with more detailed breakdowns requires longer time, usually around three months after the period concerned.

Statistics on job vacancies and on unemployment are obtained from two different surveys. As such, the speeds at which statistics can be produced are bound to be different, depending on the specific survey mechanism involved and, more importantly, on whether respondents can promptly report their situation. For job vacancies, statistics are collected from business establishments through the Quarterly Survey of Employment and Vacancies (SEV). As the reference date is end of quarter, actual field work on the SEV cannot start before the end of that reference quarter. In addition, if the business establishments concerned fail to report their position by postal return, staff of the Census and Statistics Department will have to follow up through computer-assisted telephone interviewing, and if this is again unsuccessful, by field visits. This is no doubt a time - and resource - consuming process, considering that the sample for the SEV covers as many as 70 000 establishments in each quarter. The entire data collection process for the SEV takes about nine weeks to complete.

On the other hand, statistics on unemployment arc currently collected from 13 500 households each quarter through the General Household Survey. As the enquiry is made by personal interviews on a continuous basis, the time required for data collection is generally much shorter.

55

(b) The Census and Statistics Department always strives to shorten the time required for the production of statistics, as part of its on-going programme of improvement to the Department’s statistical systems. For job vacancy statistics in particular, currently the Department is examining the possibility of streamlining the procedures on data editing and data processing. But even with this streamlining, the shortening of time is unlikely to be very significant. Prompt and accurate response from the business establishments surveyed is the crucial factor in this regard. In future surveys, the Department will continue to stress this need to all business establishments involved.

End/Wednesday, July 12, 1995

Staff wastage in ICAC

♦ * * * *

Following is a question by the Hon Cheung Man-kwong and a written reply by the Chief Secretary, the Hon Anson Chan, in the Legislative Council today (Wednesday):

Question:

Regarding the staff wastage in the Independent Commission Against Corruption, will the Government inform this Council of:

(a) a breakdown of the wastage position in each rank by number, percentage and reasons for leaving in each of the past three years;

(b) the forecast of staff wastage for next year: and

(c) the measures adopted by the Commission, which is an extremely sensitive and important agency, to prevent its operation from being affected by staff wastage?

56

Reply:

(a) A break-down of the staff wastage in each rank by number, percentage and reasons for leaving in 1992-1994 is attached at Annexures A - C.

(b) The forecast of staff wastage for 1995 and 1996 is at Annexures D & E.

(c) Almost all ICAC staff (93%) are on contract terms. The Commission has therefore always had a steady turnover of staff. However, 51% of all grades have served the Commission for more than 10 years, and 11% have served for more than 20 years. There is at present no difficulty in recruiting. Staff morale generally is high. The Commission will continue to ensure that terms and conditions of service remain attractive.

Career development programmes and succession planning ensure that supervisory vacancies can be filled by promotion from within. Direct recruitment to supervisory ranks has only been a limited feature of ICAC recruitment policy in past years. However, if factors beyond the Commission’s control were to cause staff to leave in greater numbers than could be replaced from within, direct recruitment at appropriate levels would be increased.

PR-53

Staff Wastage Statistics 1992

Rank Strength as at 31.12.92 (a) No. of Departure (b) % (b)/(a) Reasons for Departure

Ehmigration Further Education Employment Elsewhere Others (Personal Reasons) Retirement Termination/ Dismissal

Directorate 14 3 21.4% 2 1

SCACO 38 1 2.6% 1

OOD(U) 103 8 7.8% 3 1 2 1 1

CMO(M/L) 329 31 9.4% 5 6 9 9 2

ACAOD 205 15 7.3% 1 2 5 6 1

Surveillance Grades 109 6 5.5% 2 4

General & Support Grades 291 51 17.5% 5 3 17 21 2 3

Ibtal 1089 115 10.6% 14 14 33 42 • ? • 6 6

i

in

I

Note : SCACO = Senior Commission Against Corruption Officer CACO(U) = Commission Against Corruption Officer (Upper) CAOO(M/L) = Commission Against Corruption Officer (Middle Aower) ACACO = Assistant Commission Against Corruption Officer

Annex

PR-53

Staff Wastage Statistics 1993

• ■-> - < Rank I . • . - i Strength as at 31.12.93 (a) No. of Departure (b) % (b)/(a) Reasons for Departure

Bnnigration Further Education Ehplojment Elsewhere Others (Personal Reasons) Retirement Termination/ Dismissal

Directorate 15 3 20.0% 2 1

SCM) 37 2 5.4% 1 1 . — ■

CMD(U) 102 5 4.9% 2 1 1 1

OOO(MZL) 342 19 5.6% 3 2 7 4 1 2

ACAOO 231 14 6.1% 2 1 3 7 1

Surveillance Grades 104 6 5.8% 2 1 1 2 - - X-

General & Support Grades 284 28 9.9% 4 7 12 5

Total 1115 77 6.9% 13 4 22 27 * 9 2

i

cn oo

I


Note : SCAOO = Senior Ccrrmission Against Corruption Officer CAOO(U) = Commission Against Corruption Officer (Upper) CA3D(M/L) = Commission Against Corruption Officer (Middle/Lower) ACAOO = Assistant Commission Against Corruption Officer

Annex

co

PR-53

Staff Wastage Statistics 1994

Rank Strength as at 31.12.94 (a) No. of Departure (b) % (b)/(a) Reasons for Departure

Ehmigration Further Education employment Elsewhere Others (Personal Reasons) Retirement Termination/ Dismissal

Directorate 15 1 6.7% 1

SCAOD 37 4 10.8% 1 2 1

OOO(U) 103 10 9.7% 5 1 1 3

cMom) 349 * 13 3.7% 3 1 3 4 2

ACAOD 251 24 9.6% 1 2 6 14 1

Surveillance Grades 107 1 0.9% 1

General & Support Grades 296 27 9.1% 3 9 * 14 1

Total 1158 80 6.9% 13 3 21 34 7 2

Note : SCACO = Senior Commission Against Corruption Officer CADO(U) = Commission Against Corruption Officer (Upper) CA30(M/L) = Commission Against Corruption Officer (Middle/Lower) ACACO = Assistant Commission Against Corruption Officer

Annex

60

Annex D

Forecast departures,.for_ 19.25

No. of known

No. of anticipated

Bank Departure . departures Total

(position 30.6.95)

Directorate 2 2

SCACO 1 2 3

CACO(U) 0 7 7

CACO(M/L) 5 9 14

ACACO 9 3 12

Surveillance grades 0 2 2

General & support 8 9 17

grades *23 34 57

Note : SCA3D = Senior Commission Against Corruption Officer CA30(U) = Commission Against Corruption Officer (Upper)

CAOO(M/L) = Commission Against Corruption Officer (Middle/Loer) ACA30 = Assistant Commission Against Corruption Officer

61

Annex £

Forecast departures for 1996

Rank

Directorate

SCACO

CACO(U)

CACO (M/L)

ACACO

Surveillance grade

General & support grades

No. of Known anticipated departure

5

2 • ?

4 /

6

21

Note : SCACO = Senior Commission Against Corruption Officer CACO(U) = Commission Against Corruption Officer (Upper) CACO(M/L) = Commission Against Corruption Officer (Middle/Lower) ACACO = Assistant Commission Against Corruption Officer

End/Wednesday, July 12, 1995

62

Heavy workload on extra-curricular activity co-ordinators ♦ ♦ * ♦ ♦

Following is a question by the Hon Eric Li and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

A recent survey indicates that over 40% of the extra-curricular activity coordinators (ECACs) in secondary schools feel they are under heavy work pressure. Will the Government inform this Council whether:

(a) consideration will be given to reducing the number of teaching periods per cycle for the ECACs and increasing the number of clerical staff in these schools to help the ECACs with the clerical work, so as to alleviate their heavy work pressure; if so, what the details are and when will such measures be implemented; and

(b) the Government will adopt other improvement measures; if so, what those measures are and when will they implemented?

Reply:

Mr President,

(a) Schools are given adequate staffing provision in accordance with the number of operating classes. The extra-curricular activities coordinator's post is a functional post similar to other functional posts such as subject panel chairmen. These functional posts carry a higher salary than normal teaching posts because the post holders are expected to carry higher responsibilities and heavier workload. School principals can deploy their own staff in the light of their own circumstances and requirements, for example, to reduce the number of teaching periods per cycle for the ECACS as necessary or to redeploy their clerical staff to assist the ECACs.

(b) We consider the present staffing provision in schools to be generally adequate, and that the flexibility now given to school heads to deploy their staff is working effectively.

End/Wednesday, July 12, 1995

63

Inflation rates

*****

Following is a question by the Hon Martin Barrow and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

Regarding the Government's announcement that the inflation rate in 1995 will be 0.5% higher than originally forecast, will the Government inform this Council:

(a) of the average and year-on-year actual/forecast inflation rates in 1994 and 1995 in respect of the following categories:

Average Year-on-Year

1994 1995 1994 1995

Actual Forecast Actual Forecast

CPI "A"

CPI "B"

Composite

(b) of the reasons for the differences between the average and year-on-year figures in each category; and

(c) whether the indices and the weightings being used can correctly measure current consumption habits and whether the Government will carry out a review of the methodology?

Reply:

(a) Currently, the Government produces a forecast on the Consumer Price Index (A) only. The actual average increase in the CPI(A), CPI(B) and Composite CPI in 1994, together with the forecast average increase in the CPI(A) in 1995, are given below :

- 64 -

Forecast Actual

average increase average increase in_122i in 1994

CPI(A) 9.0% 8.1%

CPI(B) 1 - 8.6%

Composite CPI - 8.8%

The increases in the CPIs on an annual average basis are basically the same as their year-on-year increases averaged over the respective twelve months.

(b) The differential movements in the CPIs were mainly due to differences in the consumption patterns of the household expenditure groups and in the price movements of the respective components covered by the three indices. In 1994, consumers in the CPI(A) expenditure group benefited more from the slower increase in the prices of basic foodstuffs and other consumer goods imported from China, while consumers in the CPI(B) expenditure group were affected more by the accelerated increases in the prices of clothing and footwear and in housing rentals. As a result, both the CPI(B) and the Composite CPI showed faster increases than the CPI(A) in 1994.

(c) The CPIs are compiled based on the average expenditure patterns of households ascertained from the 1989/90 Household Expenditure Survey (HES). Past experience shows that average household expenditure patterns change only gradually over time. So as at present they are not reckoned to be significantly out-dated for the purpose of CPI compilation.

Under the current practice, the household expenditure patterns and hence the weights for the CPIs are updated once every five years based on the results of a new round of HES. This practice is in line with the standards adopted in statistically advanced countries/territories.

The current round of the HES, which is the 1994/95 HES, has already been conducted for some months and is now proceeding to an advanced stage. It covers the expenditure patterns of households over the period from October 1994 to September 1995. When the summary results of this survey become available, the weights of the CPIs will be updated accordingly. The Government's plan is to publish a new series of CPIs with updated expenditure weights in April 1996.

End/Wednesday, July 12, 1995

- 65 -

Operational hours of South East NT landfill ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Tam Yiu-chung and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council whether it will, in response to the request of private waste collectors, postpone the closing time of the South East New Territories landfill from 10 pm to 2 am and designate an area near the landfill as a temporary parking place for refuse collection vehicles, so as to improve the environment?

Answer:

Mr President,

The South East New Territories (SENT) landfill is open for 15 hours a day, from 8 am to 11 pm. Of the 1,500 waste collection vehicles that visit the SENT landfill daily, only 6% arrive between 9 pm to 11 pm. These operational characteristics do not indicate a need, at present, to extend the opening hours to 2 am.

Apart from the level of demand, there are other issues which need to be considered before extending the operational hours of landfills, for example, the environmental impact of refuse collection vehicles travelling through populated areas after mid-night, additional traffic noise and other nuisances to local residents.

Parking spaces for vehicles in the Tseung Kwan O area are already reasonably well provided for by the existing 8 lots under short term tenancy (STT) for mixed vehicle parking. Another lot will be available by the end of 1995, thereby bringing the total amount of parking space to over 90,000 square metres. At present, there are no other areas near the SENT landfill which can be used as a temporary parking place for refuse collection vehicles. However the Administration will continue to consider the need for, and provision of, additional STT space for vehicle parking if suitable land in the area becomes available.

End/Wednesday, July 12, 1995

66

Waiting time for first consultation in specialists' clinics ♦ ♦ ♦ ♦ ♦

' ■ • J..

Following is a question by Dr the Hon Huang Chen-ya and a written reply by .the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) what is the longest waiting time for a new patient to have his first consultation at each of the ear-nose-throat, dermatological and eye clinics under the management of the Hospital Authority (HA); and

(b) what plans have been drawn up by the HA to improve the provision of such services?

Reply:

While ear-nose-throat clinics and eye clinics are managed by the Hospital Authority, dermatological clinics are operated by the Department of Health. The waiting time for first appointment at these clinics is provided below:

Longest Waiting Average Waiting

Time for First Time for First

Appointment Appointment

(Weeks) (Weeks)

Ear-nose-throat clinics 12 4

Eye clinics 24 14.5

Dermatological clinics 12 8

The above statistics should be interpreted against the growing public demand for specialist medical treatment and an increased number of total attendance in the past few years. Reduction in waiting time has been achieved through immediate assessment to accord urgent cases with priority, introduction of a central telephone booking system to facilitate access by patients, offering patients the choice of obtaining earlier treatment in other less busy clinics, as well as planning and construction of new facilities to strengthen existing services.

End/Wednesday, July 12, 1995

67

Request for info from IRD on drug trafficking suspects *****

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the acting Secretary for Security, Mr Kenneth Woodhouse, in the Legislative Council today (Wednesday):

Question :

Under section 20 of the Drug Trafficking (Recovery of Proceeds) Ordinance, an authorised officer may, for the purpose of an investigation into drug trafficking, apply to the court for an order to require the Inland Revenue Department (IRD) to provide information on persons suspected of having benefited from drug trafficking. Will the Government inform this Council of the numbers of applications made to the court for the issue of court orders requiring IRD to provide information on persons suspected of drug trafficking and persons suspected of having benefited from drug trafficking respectively, as well as the number of prosecutions instituted on the basis of such information, in the last two years?

Reply:

Mr President,

During the two-year period from 1 July 1993 to 30 June 1995, the Police and the Customs made 107 applications to the court to obtain information from the Inland Revenue Department. It is impossible to break down this number into applications for court orders requiring the Department to provide information concerning persons suspected of drug trafficking on the one hand, and persons suspected of having benefited from drug trafficking on the other, because many of the applications were made for both purposes.

One prosecution for a money laundering offence was instituted during the same period with the assistance of information provided by the Inland Revenue Department. In addition, 11 successful confiscation applications were made as a result of this information.

End/Wednesday, July 12, 1995

68

International covenants on human rights

*****

Following is a question by the Hon Lee Cheuk-yan and a written reply by the Secretary for Home Affairs, Mr Michael Suen, in the Legislative Council today (Wednesday):

Question:

The International Covenant on Civil and Political Rights and International Covenant on Economic, Social and Cultural Rights are extended to Hong Kong with certain reservations such as reservations of the right not to require the establishment of an elected Executive or Legislative Council in Hong Kong and to postpone the application of the provision concerning equal pay for equal work for men and women in the private sector, as well as the provisions which lay down the right of trade unions to set up national federations or confederations and to form or join international tradeunion organisations. In this regard, will the Government inform this Council:

(a) whether the Government intends to remove all such reservations in the two covenants mentioned above;

(b) if the answer to (a) is the affirmative, whether the Government has any plan to hold discussions with the British and Chinese Governments on the removal of all such reservations applicable to Hong Kong; and (c) if the answer to (a) is the negative, what the reasons are?

Reply:

Mr President,

In Part XIII of Annex I to the Joint Declaration it is clearly stated that the provisions of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights as applied to Hong Kong shall remain in force. In our view, this envisages that reservations extant on 30 June 1997 will continue to apply. However, the continuation of our international rights and obligations arising under international agreements, including the nature of the reservations which will be applicable, are matters for discussion in the International Rights and Obligations Sub-group of the Joint Liaison Group.

There arc no plans at present to remove reservations under the two covenants. Most of these are designed either to safeguard law and order and the economic interests of Hong Kong people, or reflect our present and future constitutional position.

End/Wedncsday, July 12, 1995

69

Factors to determine sites for schools * ♦ ♦ ♦ ♦

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

Question:

Many of the sites proposed by the Government for the construction of primary and secondary schools are located in areas which have serious noise problems. This has often resulted in the need to provide noise insulation in the schools concerned, thus increasing the costs as well as casting doubts whether the schools erected on these sites can provide a quiet learning environment for students. In this regard, will the Government inform this Council:

(a) of the criteria for determining sites for the construction of schools in land use planning;

(b) what factors will be considered in selecting suitable school sites and whether the existence of noise problems in the vicinity of a site is a decisive one; and

(c) if the answer to the latter part of (b) is in the affirmative, why there are still schools built on sites in areas with noise problems?

Answer:

Mr President,

(a) Sites for schools are identified according to the location guidelines set out in the Hong Kong Planning Standards and Guidelines. These guidelines provide for, among other things, school buildings to be located away from areas affected by significant noise sources, and if this is unavoidable, then appropriate noise abatement measures should be considered.

70

(b) Factors to determine which sites are suitable for the building of schools include the demand for school places in the catchment area, its size, accessibility, compatibility with neighbouring institutions, cost of site formation, availability of pubic transport, noise problems, air pollution and the presence if any of hazardous installations. The weight to be given to the noise factor depends on its severity relative to other factors.

(c) An environmental review is conducted before any new school project is finalised. If the Education Department, on balancing all the factors mentioned in (a) & (b) above, decides to accept a site affected by noise problems, effort will be made to mitigate the noise impact by design, layout, double-glazing and other related measures.

End/Wednesday, July 12, 1995

Vehicles taken to scrapping yards

*****

Following is a question by Dr the Hon Samuel Wong Ping-wai and a written reply by the Secretary for Transport. Mr Haider Barma. in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council of:

(a) the respective numbers of private cars, taxis, vans and minibuses which were taken to vehicle scrapping yards in each of the past three years; and

(b) the respective percentages, by weight, of the vehicles which were recycled in the stripping process and those which were subsequently discarded in the Government’s landfills?

71

Reply:

Mr President,

(a) The Transport Department has a contract with a scrap dealer for him to purchase vehicles from the two Government Vehicle Surrender Centres and the Police pounds, as well as those abandoned on Crown land. The contractor collected 2517 such vehicles in the year ending 30 June 1993, 2099 in 1994 and 1983 in 1995. Details are annexed. We have no information on the numbers of vehicles that are taken direct to private scrap dealers. However, 33,700 vehicles were deregistered in the year ending 30 June 1993, 32,400 in 1994 and 38,200 in 1995. A large proportion of these vehicles will have been scrapped.

(b) No information is available on the percentage by weight of old motor vehicles recycled or disposed of in Government land fills. However, there is a commercial incentive for scrap dealers to maximise recycling and to minimise the amount of material that has to be taken to the land fills.

72

Annex

NO, of Vehicles Collected by Government Contractor

Year ending Year ending Year ending

Category 30.6.93 30,6,94

Private Car 1530 1262 1189

Goods Vehicle 400 296 254

. *<•

Public Light Bus 10 6 5

Bus 3 2 6

Motorcycle 545 511 498

Vehicle Body 26 9 9

(without engine)

Trailer 2 11 22

Special Purpose Vehicle 1 2 0

End/Wednesday, July 12, 1995

2517

2099

1983

73

Waiting list for public housing * * * * *

Following is a question by the Hon Fung Kin-kee and a written reply by the Secretary for Housing, Mr Dominic S W Wong, in the Legislative Council today (Wednesday):

Question:

Regarding the households on the waiting list for public housing, will the Government inform this Council:

(a) of the number of households on the waiting list for public housing for two years or more;

(b) of the breakdown of such households by number of family members ranging from singleton household to those with more than ten family members; and

(c) whether it will consider providing such households with rent allowance in view of the fact that these households are not given any other housing assistance whilst awaiting allocation of public housing units; if so, whether any timetable has been set for the implementation of such an arrangement: if not, why not?

Answer:

Mr President,

At the end of May 1995, there were 148,837 households on the General Waiting List for public rental housing. Of these, 108,528 were registered for two years or more. The breakdown by household size is given below :

- 74 -

Household size (Number of persons)

Number of households

1 14,208

2 23.820

3 27,985

4 27,543

5 10,825

6 3,079

7 755

8 225

9 59

10 or more 29

Total 108,528

About 25% of these households are already living in subsidised public housing, while another 7% are accommodated in temporary housing areas.

The Government does not consider it appropriate to provide rent allowances to households on the General Waiting List. To do so would not only conflict with Government social policy in other areas such as social welfare, but would also be inconsistent with the main objectives of our housing policy, where our priorities are geared towards increasing flat supply and encouraging home ownership, with assistance being provided through various subsidised schemes. This policy has the effect of making more public rental housing flats available for allocation to eligible families on the General Waiting List, and therefore represents a more efficient use of resources than providing rent allowances. Moreover, such allowances would have very substantial recurrent financial implications of possibly about $4 billion a year and other practical difficulties in implementation.

If a person on the General Waiting List is financially vulnerable, he should apply for financial assistance under the Comprehensive Social Security Assistance Scheme. If eligible, he will be paid both a standard rate to cover ordinary household expenditure and a special grant to cover rent. In granting public financial support to those in need, it would be inequitable to distinguish between those who may or may not be on the General Waiting List.

End/Wedncsday. July 12. 1995

9

- 75 -

Police procedure on open fire

<. *****

Following is a question by Dr the Hon Conrad Lam and a written reply by the acting Secretary for Security. Mr Kenneth Woodhouse, in the Legislative Council today (Wednesday):

Question:

Regarding the jury’s return of a verdict of death by misadventure of a Korean hostage killed by a police officer in the shootout between the police and a gunman at Shum Wan, will the Government inform this Council:

(a) whether the police officers concerned had followed the normal procedure in the handling of the above-mentioned incident; if so, why the hostage was shot dead by the police; if not, what was the cause of the error:

(b) why the police was unable to identify the person who handcuffed the two persons killed in the incident; and whether the police will pursue the matter further; if not, why not; and

(c) what measures the police will adopt to prevent the recurrence of similar mishaps?

Reply:

Mr President,

As regards part (a) of the question, internal investigations are underway in relation to the actions of the police officers involved in this case. The evidence presented at the recent Death Inquest will be taken into consideration by the investigating officers. It is too early to say whether any police officers are at fault or have breached police procedures.

As regards part (b) of the question, the purpose of the Death Inquest was to inquire into the cause and circumstances surrounding the death of the gunman and the Korean hostage; but not to investigate each and every detail of the incident. The question as to who handcuffed the two persons killed will be considered in any legal or disciplinary proceedings which might take place.

76

As regards part (c) of the question, the Police have pledged to conduct a full review of police policy and procedures and to address the recommendations made in connection with the Death Inquest. These recommendations include:

(i) better and broader firearms training;

(ii) tactical training for officers to deal with armed offender incidents;

(iii) better training in radio communication; and

(iv) possible use of certain chemical spray to temporarily disable or incapacitate a violent offender.

The Police hope to complete this review as soon as possible.

End/Wednesday, July 12, 1995

Purchase of electricity from Daya Bay

*****

Following is the question by the Hon Christine Loh Kung-wai and a written reply by the acting Secretary for Economic Services, Mrs Elizabeth Bosher, in the Legislative Council today (Wednesday):

Question:

According to the Secretary for Economic Service's reply to a question asked on 24 May 1995, about 64% of the electricity purchased by China Light and Power customers from the Guangdong Nuclear Power Station (GNPS) at Daya Bay is subject to a price cap. In this connection, will the Administration inform this Council:

(a) how the price of the remaining 36% of electricity purchased from GNPS is fixed;

77

(b) whether in the event of an unexpected shortfall of electricity produced at Daya Bay, the Guangdong Nuclear Power Joint Venture Company (GNPJVC) is allowed to set the price of these unprotected units of electricity at a rate which will allow the GNPJVC to recoup a minimum annual rate of return regardless of the price of these units as compared to the cost of electricity generated by coal-fire; and

(c) how the public can be assured that all electricity purchased from GNPS is at a price below or comparable to the cost of producing electricity from spare capacity in Hong Kong?

Reply:

Mr President,

Under the terms of the joint venture contract, the Hong Kong Nuclear Investment Company Limited (HKNIC) is committed to purchasing 70% of the total output of the Guangdong Nuclear Power Station (GNPS) at Daya Bay. The nuclear electricity purchased by HKNIC is resold, without any mark-up, to its holding company, the China Light and Power Company Ltd. (CLP) for distribution to CLP customers. 30% of the total output is ear-marked for China.

64% of the electricity purchased by HKNIC (the "resale" quantity) is subject to a unit price not exceeding the notional cost of a unit of electricity generated by a coal fired station construction in Hong Kong and commissioned in 1991 (the coal-fired electricity price formula). There is no price cap for the remaining 36% (the "offtake" quantity) and this is charged at the actual unit price.

With this background, the answers to the specific questions are as follows:-

(a) irrespective of the buyer, the actual unit price of nuclear electricity purchased from the GNPS is determined by dividing the total cost of generation plus permitted profit by the number of units sold.

Generation cost is defined in the joint venture contract. It includes all expenses relating to the production and operation of the nuclear power station.

Profit is also defined in the joint venture contract. It is expressed as a percentage return on average investors' funds and is performance related.

78

(b) the Guangdong Nuclear Power Joint Venture Company (GNPJVC), which owns and operates the GNPS, cannot charge more for the ’’offtake” quantity than the actual unit price determined in accordance with the formula specified in the joint venture contract. In other words, the Company cannot recoup a minimum annual rate of return by increasing the offtake price. It should be noted that, in the event of lower than expected levels of production, both depreciation charges and profit (which are based on plant performance) will decrease, thereby lowering the unit price.

(c) The coal-fired electricity price cap applies only to the 64% ’’resale”

quantity.

End/Wednesday, July 12, 1995

Helicopter accidents ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the acting Secretary for Economic Services, Mrs Elizabeth Bosher, in the Legislative Council today (Wednesday):

Question:

With regard to the two helicopter crashes which occurred within a short span of time recently, will the Government inform this Council:

(a) of the total number of helicopter crashes which occurred in tl e territory over the past three years together with details about the dales, times, locations and causes of the crashes, as well as the helicopter models and the names of the manufacturers concerned;

(b) of the existing legislation to monitor helicopter flights and Jieir safety;

and

(c) what measures the Government has adopted to prevent the occurrence of such accidents, and whether the Government has taken action to step up those measures in order to ensure the safety of the public?

79

Answer:

. • * •?*

Mr President,

(a) There were three helicopter accidents in the territory during the past three years. Details of the incidents are as follows:

(1) Date : 21 May 1992

. < Time : Location Model : Manufacturer: Causes : 1420 L Near Siu Lang Shui, Castle Peak, Hong Kong SA315B Aerospatiale The prime cause of the accident was the snagging of the underslung load on a bush. Contributing factors were the operation of the helicopter close to or slightly above the maximum permitted weight limit as well as the transition from the hover to forward flight in a downwind direction.

(2) Date : Time : Location : Model : Manufacturer: Causes : 9 June 1995 1130 L Approximately 7 km west south west of Sek Kong Airfield (Near Yuen Long) SA315B Aerospatiale The Inspector's investigation is currently in progress.

(3) Date : Time : Location : Model Manufacturer: Causes : 29 June 1995 0910 L Approximately 8 km west of Sek Kong Airfield (Near Yuen Long) SA315B Aerospatiale The Inspector's investigation is currently in progress.

(b) The Air Navigation (Overseas Territories) Order 1977 provides the regulatory framework and standards governing the safe operation of aerodromes, aircraft, air traffic control, aircrew and other aspects of aerial work and public air transport.

- 80 -

This includes legislative requirements pertaining to helicopter operations. Part II of this Order relates to the issue of Air Operator's Certificates and Part V to the operation of aircraft, including helicopters.

Surveillance of helicopter operations is effected by requiring the operator to establish operating procedures in an operations manual. The Director of Civil Aviation is responsible for monitoring compliance with these procedures.

(c) The three accidents are subject to investigation under the Hong Kong Civil Aviation (Investigation of Accidents) Regulations 1983. The purpose of these investigations is to establish the cause or causes of the accident, so as to avoid a recurrence of such incidents in the future. As a result of these investigations, safety recommendations are made and implemented.

In view of the two accidents which occurred recently, the Director of Civil Aviation has provisionally suspended the Air Operator's Certificate of the company responsible for the helicopter operations, pending due inquiry, with a view to ensuring that procedures are in place to prevent a recurrence.

.Ji:* * ' 2,

. > u

End/Wednesday, July 12, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Thursday, July 13,1995

Contents Eage No,

Transcript of Governor’s question & answer session in LegCo................ 1

Government to follow up anti-drugs proposals.............................. 16

Funds sought for air cargo complex fitting-out works...................... 17

MTR ticket to publicise AIDS awareness messages........................... 18

Exhibition to promote employment of disabled.............................. 19

Retirement schemes registration deadline.................................. 19

Lantau taxi to charge new fares........................................... 21

Reminder on deadline for returning survey questionnaire................... 22

Hong Kong Monetary Authority money market operations...................... 23

1

Transcript of Governor's question & answer session in LegCo *****

The following is a transcript of the question-and-answer session by the Governor, the Rt Hon Christopher Patten, in the Legislative Council meeting today (Thursday):

Mr Allen Lee (through interpreter): Now in March this year there was a summit convened by him on drugs. Now up to the present moment what measures have been taken to combat the issue of drugs? In housing estates I observed a scattering of syringes and in the housing estates youngsters sometimes inhale thinners. I don't see concrete action being taken. Now in the community I think we would like to know what concrete measures will be taken by the Government.

Governor: I'm gratefol to the Honourable gentleman for that question. He'll recall that at the summit that I called in March, we set out at the end of discussion an action programme for the Government and we have just reported on the first quarter of implementation of that programme. It covered a number of issues from preventive education and law enforcement to the importance of more research and the importance of enhancing the work of rehabilitation and treatment, which we do in the community. But in addition we also followed-up the over 40 points that were raised by those who attended the summit and we've just given our reaction to those points and to ACAM's comments on them and we'll continuing to report quarterly to all those who attended our summit, and to the community as a whole, on the measures which the Government is taking to implement both our original action programme and the ideas that were put forward at the summit.

Perhaps I can say two additional things. First of all the reason and the Honourable Member has alluded to this, the reason for us giving this programme such priority was the alarming rise in figures of drug abuse, particularly as far as the under 21's are concerned. In the period from 1989 to 1994 the percentage increase of drug abusers in that age group was over 229%. I'm pleased that the latest figures that we've had show for the first time a fall in the number of newly reported drug abusers.

The first quarter figures for this year compared with the first quarter last year show a drop of just under 30% but that is not a reason for complacency. It may prove as we get more figures during the year that that was a blip rather than the beginning of a new trend. So I don't think there is any reason at all for us to stop giving these programmes the support and attention which they deserve.

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The second point I want to make concerns an idea which has been advanced I know by a number of Legislators and was advanced at the summit to which I referred. That is the proposal that we should establish a fund for combating drug abuse and that we should put into it the money, the proceeds of drug trafficking which are confiscated in successful convictions. I think there are some arguments against that proposition which have been put from time to time. Particularly, of course, the uncertainty of that source as a main source of funding. But the proposal that we should establish a special fund for tackling drug abuse is one that we're taking very seriously in the Administration and we intend to put some proposals to this Council and to the community in the Autumn. But, I repeat, we'll continue to report on the implementation of both our action programme and on our reaction to the large number of proposals which were put to us during the summit itself.

Mr Allen Lee (through interpreter): A quick follow-up. Mr President, in the housing estates now I observe that many youngsters blatantly take drugs and they inject drugs into the body so syringes are scattered here and there. I asked the residents what action should be taken against the problem. I was told that during the evening time not a lot of policemen can be observed touring or inspecting the area. The residents are, of course, fearful of the youngsters. They would rather turn a blind eye to the youngsters but the problem is getting more and more serious. So action, concrete action must be taken. The residents feel that a police presence is not enough and the residents themselves are fearful of the youngsters but then police coverage is not good enough and in fact we have such phenomena in the housing estates the Government must address the issue. The residents are of the view that police manpower is not adequate and therefore the youngsters are blatantly committing the offences. So is that the real picture?

Governor: The police were of course involved in the summit in March, and they've been involved in all our discussions on implementing our action programme. They recognise the importance of working with the community, with the Fight Crime Committees and with schools and colleges in combating drug abuse and I can assure the Honourable Member that they give this considerable priority. They have indeed over the last year enjoyed some remarkable successes in the seizure of drugs but I think we all recognise the importance, as the Honourable Member mentioned, of adequate police presence on the streets and in the estates. I’ve witnessed some of the consequences of the phenomenon to which the Honourable Member refers on visits to some housing estates. The stairwells which are used for the exchange of drugs, the places on the windows where drugs and money are left and are exchanged. The syringes which are found in the morning when other children are going to school. Those are all signs of the drug abuse which we wish to fight vigorously and of course an active police presence, as well as better measures to educate young people about the dangers of drugs are an essential part of a successful programme.

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Mr Henry Tang: My question concerns the rule of law. I think we all agree, Hong Kong today has a very high standard of rule of law and I cannot agree more that it is our top priority. In fact, if I paraphrase what the Chief Secretary had said, it is our core policy to maintain the rule of law up to and beyond 1997. Can you, Governor, explain or elaborate, what do you intend to do between now and 1997 that will further strengthen the rule of law, other than what we are already doing today? In other words, what additional measures do you intend to put into place that will assure us of this rule of law, or strengthen the rule of law that we already have?

Governor: I hope the Honourable Member will be patient if I set out some of the things that we wish to do, at length. And in the light of recent discussions in this Chamber, and in the spirit which I agreed with the Honourable Member Mr Cheng on the way in, that this session should have as its motto "Peace and Love", I will be gentle and as calm as possible in setting out the Government's programme.

But I say first of all, that the most important thing that we can do - that we can do with this Council - to secure the rule of law in Hong Kong, is, at the end of this month to place on the statute book the legislation on the Court of Final Appeal, which was, I guess, the trigger for yesterday's debate. And perhaps I can just say, ever so gently, a word about that (albeit in the absence of one or two of the main participants in the debate) it is conceivable (I make the point in parenthesis) that the reason why they keep on getting the agreement we reached with China so wrong, that the reason why they keep on saying things about the Court of Final Appeal Bill which are so damagingly wrong, is that they are so rarely in the Chamber to actually discuss the issue with the Governor when he turns up to talk about it.

I think that we suffer in Hong Kong from an epidemic of what we call at home, Craddockitis, and it is something which affects not just dyspeptic retired ambassadors, it clearly goes wider than that. And there are a number of ingredients to the disease, a number of symptoms. There is a belief that one has a monopoly of virtue, a belief that one has a monopoly of wisdom about what is right for Hong Kong, a belief that one has a monopoly of concern about the things which have made Hong Kong so special, and a belief that unless everybody else agrees with you and follows your own analysis, that, as far as Hong Kong is concerned, is the end of the road. Hong Kong is doomed unless people always agree with you. Those are some of the symptoms of this epidemic.

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I just say in that spirit of peace and love and reconciliation, which I mentioned earlier, to those who hold that particular view, that they might occasionally ask themselves this, when they are considering the Court of Final Appeal and the agreement that we reached with China: Does the Chief Justice not believe in the rule of law? The Chief Justice supports the agreement and the Bill. What about the Chief Secretary and the Financial Secretary, and the Attorney and the Solicitor General, and the Director of Public Prosecutions? Do they not support the rule of law in Hong Kong? What about eminent Silks on my Executive Council - like Denis Chang and Andrew Li? What about the Law Society? What about the Chamber of Commerce? What about the International Chambers of Commerce? What about the Australian, American, Canadian, Japanese and South Korean Governments, all our major trading partners, who support the agreement on the Court of Final Appeal? Do they not believe in the rule of law?

I really think that people should sometimes, perhaps, consider a little more coolly whether they are really always, always right. And maybe they should consider that before they are wall to wall on CNN telling the rest of the world that Hong Kong is finished in 1997. There is the world of difference between pointing to possible dangers in the future, asking for reassurances about them, trying to prevent those dangers galloping round the comer - a world of difference between that, which is what the Administration has been trying to do, and saying that the rule of law after 1997 is a dead duck. Because if people start believing that, then the consequences for Hong Kong’s prosperity, the consequences for the jobs of ordinary men and women here in Hong Kong, those consequences are very severe indeed.

So the first thing this Administration is going to try to do, as hard as we try to do anything, as hard as we tried to get into place last year fair provisions for elections in Hong Kong, what this Administration is going to try to do very hard is to secure the passage of that Bill on to the statute book because I think if we were to fail in that, it would be extremely bad for Hong Kong and extremely damaging for the rule of law.

Secondly, - the Honourable gentleman is very patient - I’ll be swifter and even more loving - secondly, and I believe that this is important too, we must make sure that the administration of justice is in as good order as possible. That’s why we want to see more courts operating, that’s why we want to see more judges on the bench, that's why we want to see more resources put into adequate provision of Chinese language facilities in our courts, that's why we want to see us dealing with the backlog of cases more rapidly in the future.

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Thirdly, we have to try to ensure, with China, that we complete the programme of localisation and adaptation of laws. And I can come back to that point in a moment. We're doing pretty well with localisation of laws. The main problem on adaptation of laws focuses on what officials call the modalities of adaptation, rather than the overall process. We've got to finish the review of legislation which we've begun, to ensure that our laws are all in line with the Bill of Rights. And we have, continually, to ensure that our Police, who are by I think general estimate, the finest Police Force in Asia, we have to ensure that our Police continue to be properly resourced and to get all the support from the community which they deserve.

Thanks, not least to the efforts of our Police, our crime figures in Hong Kong have been extremely good over the years. Better, according to Interpol comparisons, as I have said before, than those for example in Singapore. And our figures for violent crime have been continuing to fall. So those are some of the things I believe that we have to do in order to secure the rule of law here in Hong Kong, the rule of law which is one of the principal reasons for the success and decency of this community.

• Mr Henry Tang: Mr President, I was rather anxious to raise my hand because this is the last chance I will have to ask you a question. I think, obviously, you have referred to an epidemic of Craddockitis, and in normal society, any kind of epidemic must be eradicated. What do you intend to do to eradicate Craddockitis?

Governor: I intend to consider to shed geniality and light on every argument in which I am involved, and to continue to rebut firmly but I hope courteously, arguments which I believe to be profoundly ill conceived, profoundly ill judged and profoundly against the interests of this extraordinary community.

Mr Edward Ho: Mr President, Governor, according to some recent reports, in the coming few years there could be a number of senior Government civil servants retiring thus creating a vacuum at the top of departments. And according to those reports the Government may have to resort to engaging people outside of the civil service, coming in to take up these posts.

Governor, my question really is directed to the situation in professional departments. Are there, first of all, I don't believe that there has been enough opportunities for professionals working in those departments to be able to rise to the very top, that is to head departments, to become policy secretaries and so forth. So my question is whether there is any policy to increase the opportunities for these people and also to give them training in management so that, you know they are not just considered to be architects, engineers, surveyors but that they can actually become people in the top management, as heads of departments, as policy secretaries rather than to enlist people from outside and thus hurting the morale of the people who have been working in the departments for years and years? Thank you.

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Governor: It's an important question. I would just say before coming to the main points that the Honourable Member makes, that I can think of a recent example of somebody coming in from outside to head a largely professional part of Government who has done an outstanding job. And I think the Honourable Member and I both share the same regard for the Secretary in question. And under his leadership we've actually seen very good professionals brought on to take over from him in due course.

The Secretary for the Civil Service was giving evidence this morning to the relevant LegCo panel and I'm sure answered this question more eloquently and knowledgeably than I will do, but there are two points that I want to focus on.

First of all, yes, there may be civil servants leaving the Administration over the next couple of years. In two years' time there'll be a Governor leaving the Administration too. But so far, I think it's fair to say that while we understand the possible dangers, some of the language which has been used about departures has been extremely extravagant, when you actually look at what's been happening in individual departments and across the civil service as a whole. Wastage from the civil service over the last 12 month period was running at just over 5 per cent, though admittedly in directorate posts the wastage was about 11 per cent. Also true to note that a large number of those in the directorate are in what I think is called the "retirement zone" and could find themselves in a year or two's time facing difficult personal choices about what was most in their financial interest. So, we're not unaware of the problems that we could face and other organisations face, particularly the professional staff.

We have been trying, the second point I wanted to make, we have been trying to address this particular issue with our training programmes and the Honourable Gentleman, the Secretary for the Civil Service was addressing that particular issue this morning, training right across the board. We've reviewed our overall training policy and we've also put a lot more resources, not least in terms of personal interest, into training to try to ensure that our professionals are in the position which the Honourable gentleman quite properly said they should be in, in which they can take charge of departments and show general management skills. For that purpose a number of them have had the advantage of management courses abroad as well as management courses in Hong Kong. So we'll continue to put emphasis on training and hope that we can avoid the problem which the Honourable gentleman mentioned.

Of course, the most important thing for us to do of all is to ensure that the morale of the civil service remains as high as possible before and after 1997, so that as many of our excellent civil servants as possible remain in the public service doing as good a job in the future as they do today.

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Mr K K Fung (through interpreter): Thank you Mr President. A question for the Governor. With regard to the CNA and airport financing issues, there have been agreements between the two governments and the CS, Mrs Chan, went to Beijing to meet with senior Chinese officials. Hong Kong people are now more optimistic with regard to transitional issues. They think that transitional issues, for example with regard to CT9 and localisation of law, all these issues can be solved. But politicians in Hong Kong in particular feel that there is an issue which is not on the agenda for discussion yet. Now my question is related to that. In the future, with regard to the smooth transition of the three tiers of Government, will that be taken up for discussion now or at a later stage, so that through a certain approach you will talk to the Chinese authorities with regard to the smooth transition of the three tiers of Government?

Governor: We talked for 17 rounds about our attempt to secure a smooth transition for the three tiers of Government in 1993 and alas despite the concessions and accommodations offered by the Administration, concessions and accommodations which I'm sure wouldn't have commanded universal assent in this Chamber, despite that, we weren't able to secure an agreement at the end of the day.

What's the situation now? The situation is one in which we've had the first two rounds of elections to District Boards and Municipal Councils which have been elected for the first time by direct election. All their members directly elected and we had, virtually all their members directly elected, thank you. And we've had for the first time, and we've had for these first virtual direct elections, we've had a record number of candidates and a record voter turnout. 60 per cent higher as I recall in the District Boards than the previous elections and I think 40 per cent in the Municipal Council elections higher than the time before. Now we have the Legislative Council elections coming over the horizon in September in which a number of Honourable Members will be engaged. I'm sure those elections will be as successful as the District Board and Municipal Council elections. We've now got, I think a record percentage of voters registered, around 65 per cent in the geographical constituencies and in the functional constituencies there'll be about 15 times as many people eligible to vote as was the case last time, well over a million. So I'm sure those elections will be successful and we'll have as a result a broadly elected Legislative Council, freely and fairly elected which should of course be able to continue with some appropriate mechanism to take account of Chinese sovereignty in 1997 until 1999.

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That for me offers every opportunity of a smooth transition. I haven’t in the past, didn’t yesterday, don’t today, won't in the future regard the steady process of democratisation in Hong Kong and its effect on this Chamber as in any way a threat to the stability or prosperity of Hong Kong. Rather the reverse. And I hope that after their experience of fighting the Legislative Council elections in September, following their experience of fighting the elections for the District Boards and Municipal Councils that some of the candidates most normally associated with PRC criticisms of what we’ve been doing in Hong Kong will come to share our view that there’s nothing to be frightened of in a decently elected Legislative Council in Hong Kong.

So I think that the best way of securing a smooth transition is to make sure those elections in the autumn take place as efficiently and smoothly as possible and then for the Legislative Council to go on behaving over the next years as constructively as it's I'm sure usually tried to behave in the last four years.

Mr K K Fung (through interpreter): Can I follow up please? Now I think the Governor is aware of this. Last year NPC of China passed a resolution that is in 1997 the three tiers of the political structure would be dismantled. Now Mr Governor, with regard to your potential negotiations with China in future, now will you take up the issue of smooth transition of the three tiers of Government through whatever form? Will you put that on the agenda?

Governor: Well as far as we're concerned it's always on the agenda, but it's not the Government of Hong Kong which is threatening a smooth transition. We've put in place arrangements which are entirely in line with the Joint Declaration and the Basic Law. We think they're arrangements, which are in Hong Kong's interests. We think they're arrangements which I guess September will demonstrate, have the broad support of people here in Hong Kong and 1 see no reason to disrupt or dismantle those arrangements. Among the many things I'm not responsible for in the world, one of them is the NPC. I see absolutely no reason at all why anyone should regard it as necessary in 1997 to dismantle the Legislative Council which the people of Hong Kong will have elected in 1995. But I mean, I don't want to be provocative, that's my situation, always has been, always will be.

Mr Szeto Wah (through interpreter): There was mention of a certain epidemic by a certain person and he said that that kind of epidemic should be stamped out. Another disease, or another epidemic crossed my mind. That had a lot to do with damage done to the Rule of Law. In the courts there are many more people suffering from amnesia. Outside the courts many politicians suffer from this kind of disease. They forget what they uttered in the past. How are we to cure this kind of disease please?

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Governor: Well, one way of curing it is for politicians to be reminded of what they’ve said in the past. If one politician who was eloquent yesterday was here today I would’ve reminded him of what he said about acts of state in 1988, but when I was a Member of the House of Commons at Westminster there were two, not rules but two pieces of etiquette that one normally followed. The first was if you'd taken a vigorous part in a debate, you turned up subsequently to hear the reply and the second was that if somebody wasn’t present you didn't criticise them too vigorously. So I'll at least follow my part of the bargain in commenting on the Honourable Member's answer on politicians amnesia.

There's something else which politicians occasionally do. Again I recall when I first became a Member of Parliament there was a man who used to stand outside the tube station at Westminster bearing a sandwich board saying the world is going to end next year. Now I regarded that always as a manifestation of freedom of speech but I didn't regard it as being a prediction which was likely to come true and indeed when I left the House of Commons 14 years later, he was still there and the world still hadn't ended. I don't think that sort of gloomster soundbite approach to politics is very helpful. I don't think it's very helpful to Hong Kong though it does fill up the airwaves, I agree. But amnesia, I repeat, is I think best treated by remembering what one has said in the past. You, of course, sensibly sometimes have to adjust your position. Times change and that sometimes requires one to change with the times and to explain why you've done so.

Mr Szeto Wah (through interpreter): Mr Governor, you said we have to remind those who are suffering from amnesia of what they have said. What do you think you have to remind me of what I have said in the past do you think Governor?

Governor: I wasn't referring to the Honourable Member who is here and 1 recall much that the Honourable Member has said, not least about parrots, with interest and occasionally, when he's being at his most witty, amusement as well. I can assure the Honourable Member that I wasn't accusing him of having forgotten something he'd said in the past. I'm sure he never does that having been a distinguished head teacher in the past.

Dr Conrad Lam (through interpreter): Mr Governor, I'm sure that the Governor and myself have the same conviction that the Government officials sitting on your right have been making a tremendous contribution to Hong Kong and many people hope that they would be able to continue to serve the people of Hong Kong after 1997. Perhaps Mr Patten might have heard the saying that 'a new broom will sweep the whole thing clean'. These officials have been working for you for so long and there are officials who would like to continue to serve the people of Hong Kong after 1997. What have you done to help them achieve these aspirations on their part? In the coming two years what are you going to do to help them achieve this particular aspiration to serve the people of Hong Kong?

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Governor: I certainly wouldn't wish to describe my senior colleagues and officials as brooms or brushes, particularly since 1 think in Hong Kong's recent political history brushes have some unfortunate connotations but I take the Honourable Member's point that we should be seeking to secure for the civil service the maximum opportunities for future service for as many people as possible who wish to continue to work for Hong Kong.

I think there are a number of things we can do. First of all, we can give our officials the maximum opportunity of learning more and at first hand about the PRC and PRC officials, the officials with whom they'll be working and co-operating hand in hand in the future. That's why we started the Qing Hua course which I proposed in 1992 to Director Lu and so far I think 170 of our officials have taken advantage of those courses and we'll be running more courses at Qing Hua University in the future and I'd like to pay credit to the University and to all those who've been involved in the courses for the extremely imaginative and effective courses which they’ve been running.

We've also got to make sure that our Civil Service have all the language skills which they'll require to work with Chinese colleagues in the future. We want a Civil Service which is biliterate and trilingual. So we've been putting more resources into, in particular, Putonghua courses, into Chinese writing courses and into Cantonese training for some of our expatriate civil servants. Those points are important.

But we also want to try to ensure that Chinese officials have the maximum knowledge compatible with th? integrity of our civil service and with the importance of retaining the morale of our civil service. We want to ensure that Chinese officials have the maximum understanding of the way the Hong Kong Government works and the maximum understanding of the personalities and aptitudes and abilities and curricula vitae of all those who make the Hong Kong Administration work so smoothly and we're happy to help in building bridges in that direction as well between Chinese officials and the Hong Kong Administration.

So, 1 think it's a two-way process. Introducing our officials more to China and Chinese administrators and doing the reverse as well. I'm sure that without being in any way arrogant, that given Hong Kong's record of good, clean, decent, effective public administration, that process of getting to know one another will be one which is much welcomed by Chinese officials and is a process from which I'm sure they will learn as much as we do.

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Dr Conrad Lam (through interpreter): Mr President, Mr Governor, I'm sure that you understand that the senior Government officials are coming under tremendous pressure, mainly because of the objection from China to the measures taken by Mr Chris Patten. Will Mr Patten be doing anything in future to help the Government officials to reduce the pressure? For example, will the Governor be lowering his profile in the Government hierarchy? Say, for instance, in the next Legislative year, will you be asking the Chief Secretary to sit up there to answer Members' questions?

Governor: 1 think the Chief Secretary has enough to fill her 24 hour day without taking on additional responsibilities, but what the Honourable Member will know I've been saying for at least 18 months, is that the closer we got to 1997, the more I would wish to delegate responsibilities and authority to my senior officials and the more I would want to bring them on and involve them, not only in the decision-making of Hong Kong but in the presentation of the Administration's policies to the public of Hong Kong. That not only makes sense in general management terms but it clearly makes sense given the reality of 1997. After 1997, unless there is some miracle of which I'm not yet acquainted, after 1997, I won't be here but most of my senior officials will be and it's important that they and politicians in Hong Kong are involved more and more in the Administration of the territory. That is a sensible way for the Governor to behave and it's the way in which the Governor intends to behave.

Can I just add one other point. I regard my colleagues in the Administration as working for Hong Kong. I think they work in the best interests of Hong Kong now and will work in the best interests of Hong Kong after 1997, and I don't think that they will or should feel any schizophrenia because of 1997 and the transition and the change of sovereignty. They're working and working extremely effectively for the people of Hong Kong, that's the way it is today and that's the way I'm sure it will be after the transition.

Mr Peter Wong: Thank you Mr President. Mr Governor, as Governor of Hong Kong and if today happens to be your birthday and you're given three wishes, what will those three wishes be?

Governor: A British Ambassador in Washington was once asked a similar question at Christmastime, asked what he would most like, and gave a reply, and heard on the radio the next morning that the French Ambassador had been asked what he would most like and said. "World peace"; that the Soviet Ambassador had been asked what he would most like and he'd said, "An end to civil wars"; and the British Ambassador had been asked what he would most like and replied, "A box of crystallised fruits".

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What I would most like is, first of all, for Hong Kong and the people of Hong Kong to be trusted by the future sovereign to play the part in the continuing opening up of China, the successful transformation of the Chinese economy and Chinese society, in the way in which I think the people of Hong Kong want to be given the chance of playing that role. I do think it is important that leaders in the PRC should recognise how committed the majority of people are in Hong Kong to a successful transition in 1997. But they do want, I think, to feel that they are trusted and not because of the values and decency which they cherish regarded as in any way a threat.

Secondly, I would hope in particular that the rule of law which has been one of the main reasons for Hong Kong’s success, could survive, as I am sure it will, intact after 1997, and that our experiences in Hong Kong of the rule of law would perhaps help those Chinese officials who have been talking with considerable interest about the development of legal structures in China.

And thirdly, I would - I hope the Honourable Member will excuse a personal remark - I would very much hope that I would be able to come back to Hong Kong after 1997, though perhaps not for a little while, and see a community as successful and prosperous and decent, thriving, giving an example to the region and the world, as much as is the case today. And I don’t like crystallised fruit.

Dr Tang Siu-tong (through interpreter): Thank you Mr President. Mr Governor, some time ago Mr Lu Ping and Qian Qichen met the CS, Mrs Chan. Now, Mr Governor, you are the big boss of the Hong Kong civil service, what is your feeling about that? And when do you anticipate that you will be meeting these senior Chinese officials because if you meet with them it will help boost the morale in the civil service?

Governor: I don’t feel like a big boss, nor yet like a big brother, but I am, as the Honourable Member said, responsible for the Administration of Hong Kong and work in that endeavour hand in glove with an extremely talented and committed group of senior officials. I hope as many of them as possible will have the opportunity over the coming months, over the coming two years, of meeting Director Lu and his senior officials, and that the meetings that the Chief Secretary had in which she was treated with the exquisite courtesy which she thoroughly deserved, will be followed by meetings with others in Hong Kong.

There were certain understandings and agreements about the regularity of meetings between the Director of the Hong Kong and Macau Affairs Office and the Governor of Hong Kong which, alas, have been departed from over the last two-and-a-half years.

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All 1 will say is that I would be happy - I would be delighted - to meet Director Lu or any of his colleagues whenever they wished.

I notice that one political party in Hong Kong, the DAB, has recently suggested that it would be a good idea if the Director of the Hong Kong and Macau Affairs Office and the Governor met. It’s not always the case that the DAB and I see eye to eye. I try my best. On this occasion, I totally agree with them that it would be desirable. And regardless of whether or not we were able to agree everything on whatever agenda was before us, I think it would have a considerable impact on confidence in Hong Kong and on the morale of the civil service.

So I live in gentle hope. But so long as that is not possible, then others will have to undertake those meetings and I am sure that they will carry a message from the Hong Kong Government with eloquence and spirit and will always be able to show their dedication to the interests of Hong Kong. Hong Kong people running Hong Kong after 1997 won’t include the last British Governor.

Dr Tang Siu-tong: Mr Governor, let me follow up. The two f oreign Secretaries or Ministers will be meeting in the autumn. Will you have an opportunity of meeting with Mr Lu Ping or Mr Qian Qichen after the summer meeting of the two Foreign Secretaries?

Governor: I think that very much depends on Chinese officials. I’d be delighted to meet them before that summit or after that meeting but it really depends on them. It is an important meeting, important because there is a new British Foreign Secretary and I am sure that he will vvant to take that early opportunity of getting to know VicePremier Qian Qichen. There are still a number of important issues that we have to resolve. There is still too much of a log-jam in the Joint Liaison Group, despite the successes of this summer, so there will be plenty for them to talk about in areas like air service agreements, adaptation of laws, nationality issues, the civil service transition, and so on. A lot for them to discuss and I am sure that they will have - whether or not they can always agree - as congenial and civilised a discourse as Mr Hurd and VicePremier Qian Qichen always used to have.

Mr Andrew Wong (through interpreter): Mr President, public opinion recently has been saying that the Government (Governor) is in the hot-seat. Some say that he is sitting on the bench, not playing on the field. Of course, when he adopts a high profile, he may be sitting on a hard-backed chair, but when he takes a low profile he is sitting on a soft-chair. Now Mr President, and Mr Governor and also the Secretary-General, I think that we all observe that he is sitting on a soft-chair today. Of course, that is thanks to the President and the Secretary-General. On my request, a more comfortable chair has been provided to the Governor, as we can all observe today.

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Now Mr Governor, having taken a seat on this comfortable chair, do you feel that indeed you are having a more comfortable time?

Governor: ... say to the Honourable Member in a spirit of self-deprecation, that because of my build, the material in which the chair is made isn’t normally of the greatest importance to me. But I am grateful to the Honourable Member for making what would anyway have been reasonably comfortable, even more comfortable. This may be the hot-seat, it may even be, from time to time, the back-seat, but I can assure the Honourable Member that his taste in chairs has ensured that it is a comfortable seat.

Mr Andrew Wong: Mr President, let me follow up. Please do not be a taxi driver -that may have consequences - when we talk about chairs we are talking about roles. But as a Governor or as a Chief Executive, well, there are two roles; for example, like the Singaporean Premier or the Queen;. Well, 1 think you should be compared to thfc Queen. And Mrs Anson Chan is the CEO. But it seems that in future, if Mrs Anson Chan takes up the post of the Chief Executive, she will be taking your seat and then those under her will be her subordinates. And then, we cannot really expect to have a responsible government.

That being so, now for these two years before the transition, I would like to make the following proposal. Not that I query your competence. Not that I have doubts about your sincerity or your integrity. Rather, I think that you should be fading out in the next two years. That should be the proper approach. In that case, you may feel more comfortable in your seat, and then you will reign but will not be ruling. That is a better role for you, in my opinion. So, Mr Governor, can you give me a response?

Governor: While it is true that I am not entirely beyond ambition, I should say to the Honourable gentleman that my ambitions don't include the establishment of a new royal line. In all our recent experience, it rains quite enough in Hong Kong without me reigning too.

As I said before, I think it is wholly appropriate for the Governor, given the localisation of the public service and given the development of our representative institutions like this Council, I think it is entirely appropriate for the Governor, the closer we get to 1997, to delegate more and to ensure that more decisions are taken by those Hong Kong people who will be running Hong Kong after 1997.

15

But, that doesn't mean that there won't be difficult decisions for the Governor to make, that there won't be occasions when the Governor has to act as a buffer or a lightning-conductor in order to make it possible for other people to do their jobs, that it won't be necessary from time to time for the Governor to draw a line in the sand and say how far the Administration is prepared to go and where it isn't prepared to go. I think that is a role which I sketched out for myself publicly at least 18 months ago, though some people were rather surprised when I did so.

I am fortunate in having a sufficiently talented team of senior officials to enable me to delegate more with complete confidence in the ability of my colleagues to carry out and implement their decisions. So with reservations - and declining from the Honourable Gentleman the offer, not this time of a comfortable chair but of a throne -with reservations, 1 sympathise with much of what the Honourable Gentleman has said.

Dr K C Lam: Mr President, I wish to change the subject to the third topic listed for today, that is the fight against drugs. In this area there is general agreement that the key to the fundamental solution lies in adequate preventive education. The bulk of this work in Hong Kong is done by non-govemment organisations and the main difficulty encountered by these organisations is the perpetual lack of funds. Because of this, organisations are losing staff fast, as they are unable to offer long term contracts. And the main reason for this difficulty seems to be that funds for non-govemment organisation work against drugs are allotted as a low priority item in the Security Branch. And my question is, what does Government plan to do to boost funding for preventive education against drugs? Will it, for example, agree to setting up a trust fund to generate a predictable, dependable source of financial resource for this purpose?

Governor: I'm sure that the Honourable Gentleman who knows so much about this subject, would concede that it is not only Security Branch which is the donor of funds for work in the preventive education field. There are also, of course, resources from other parts of Government, from the Education Department, from Social Welfare Department and so on.

But nevertheless, I have a good deal of sympathy with the main thrust of his question and that is why, as 1 indicated earlier, we are during the discussions on public spending this summer, looking with some urgency at the arguments for the establishment of a trust fund to deal with drug abuse, funding, among other things, educational programmes, and I hope that we will have some announcements to make about that after the summer break - if there is for all the Members of the Council a summer break - certainly in the autumn we will make a clear announcement about that and 1 hope it will satisfy the Honourable Gentleman.

End/Thursday, July 13. 1995

16

Government to follow up anti-drugs proposals ♦ ♦ ♦ ♦ ♦

The Government released today (Thursday) a 42-point action plan to follow-up the Report of the Action Committee Against Narcotics (ACAN) Special Action Group.

The 42 initiatives comprise nine on law enforcement, 20 on preventive education, six on treatment and rehabilitation, and seven on research. They were drawn up by government branches and departments to carry forward the ACAN recommendations submitted to the Governor in early June.

The ACAN Special Action Group has made recommendations on the 92 proposals put forward by participants at the drugs summit. As noted in the ACAN report, many of the proposals called for action that was already in hand or was included in the 26-point Forward Action Plan. Other proposals put forward new initiatives which ACAN recommended action by Government. The Government will be following up these recommendations in the 42-point action plan.

The Governor, the Rt Hon Christopher Patten, said today: "We now have an enormous programme of work before us, and will be pursuing it vigorously.

"We are looking positively at the proposal for an anti-drug fund, in the context of our overall review of public spending this summer. We should be in a position to make some more concrete proposals by autumn on the funding of drug programmes."

The measures in the follow-up action plan include:

* launching a pilot scheme to develop and implement school-based drug education courses in the 1995-96 school year;

* implementing a pilot scheme for setting up a 24-hour enquiry line for parents and students;

* seconding educators to the Life Education Activity Programme;

* producing a special feature documentary to educate the general public on the drug problem; and

* providing over 300 additional training places in 1995-96 for social workers.

These measures will build on the $30 million 26-point package announced by the Governor at the end of the summit in March.

End/Thursday, July 13, 1995

17

Funds sought for air cargo complex fitting-out works ♦ ♦ ♦ ♦ ♦

The Government plans to seek funding approval from the Finance Committee later this month for fitting-out of government facilities within the Air Cargo Complex at the new airport at Chek Lap Kok.

Funds of $64.6 million (in money of the day) are being sought to cover fitting-out works for five government departments: the Agricultural and Fisheries Department, the Customs and Excise Department, the Department of Health, the Immigration Department and the Census and Statistics Department.

A discussion paper on the proposed funding request was issued today (Thursday) to members of the Legislative Council Public Works Sub-Committee.

A government spokesman said the Finance Committee had so far approved a total of $5,474.4 million to enable the implementation of a number of government works at the new airport.

"The $64.6 million being sought was the balance of the total estimated cost of $5,539 million for government facilities at the new airport," he said.

a

On June 30, the British and Chinese sides of the Airport Committee reached agreement on the terms of the two franchise agreements to be entered into by the future Airport Authority with Hong Kong Air Cargo Terminals Limited and Asia Airfreight Terminal Company Limited for the provision of air cargo services at the new airport.

"The Authority expects to execute the two agreements very shortly, following which the franchisees will be ready to embark on their construction programmes for the Air Cargo Complex to tie in with the expected opening of the new airport in April 1998.

"According to the franchisees' programmes, they will need to finalise the detailed design of the Air Cargo Complex, together with its fitting-out works, in the coming months. Our current assessment is that entrustment of the fitting-out of government facilities within the Air Cargo Complex to the franchisees would be more cost-effective and more beneficial from the programme point of view.

18

"We therefore need to have members’ approval for the present funding request so that we may be in a position to entrust the fitting-out works to the franchisees and make commitments for the works as soon as the future Airport Authority reaches final agreement with the franchisees in the next few weeks,” he said.

The funding request will be discussed at a meeting of the Public Works Subcommittee on July 18 (Tuesday) before the Finance Committee later this month.

End/Thursday, July 13, 1995

MTR ticket to publicise AIDS awareness messages *****

I

The Committee on Education and Publicity on AIDS (CEPAIDS) will launch a package of MTR stored value ticket advertisement next Monday (July 17).

The MTR ticket advertisement, which is one of the main publicity items produced for this year's AIDS Awareness Campaign, aims to urge the public to show more concern to AIDS patients and to think about AIDS in a more positive approach.

Speaking at a launching ceremony today (Thursday) at the Central MTR Station, the Chairman of CEPAIDS, Ms Carlye Tsui, pointed out that one of the objectives for this year’s AIDS Awareness Campaign was to dispel the public's misconceptions about AIDS patients and HIV carriers.

"To fulfil this objective, the Committee has adopted a new strategy and planned a wide range of activities to reinforce the message to all sectors of the community. The launching of the M I R stored value ticket advertisement is one of the publicity media used." Ms Tsui said.

The design of the advertisement features a red ribbon which is an international symbol ofcarc for the AIDS patients. It also carries a slogan "Show Your Concern. Think About AIDS".

The MTR tickets printed with the advertisement will begin circulation from next Monday (July 17) in all MTR stations. It is expected that over 1.5 million people will get the advertising message in the coming 10 months.

End/Thursday, July 13. 1995

19

Exhibition to promote employment of disabled ♦ ♦ ♦ ♦ ♦

:.*j<

The Labour Department's Selective Placement Division (SPD) will start an exhibition tomorrow (Friday) in Tsim Sha Tsui to enhance public understanding of the working abilities of the disabled.

The exhibition will last for three days and will include video shows and the display of 18 boards introducing the work disabled employees are performing, the free placement service to the disabled and free recruitment service to employers being offered by the SPD.

"During the exhibition, employers who wish to recruit disabled workers can give details of their vacancies to our staff on-the-spot while disabled job-seekers can also register at the counter," Labour Officer (Selective Placement), Mr Byron Ng, said today (Thursday).

"Our staff will arrange interviews for both parties afterwards," he added.

The exhibition will be open from 10 am to 6 pm from tomorrow until Sunday (July 16) at the Western Gallery B, New World Centre, 20 Salisbury Road, Tsim Sha Tsui.

• r

End/Thursday, July 13. 1995

Retirement schemes registration deadline ♦ ♦ ♦ ♦ ♦

The Registrar of Occupational Retirement Schemes today (Thursday) appealed to Hong Kong employers who operate a retirement scheme to take immediate action and register their schemes.

The registration deadline will expire on October 15 and employers who continue to operate unregistered retirement schemes after the deadline may face prosecution, heavy fines and imprisonment.

To appeal for scheme registration, the Office of the Registrar of Occupational Retirement Schemes (ORS Office) plans to launch a final series of intensive promotion programmes in the coming three months.

20

According to the Occupational Retirement Schemes Ordinance which was enacted on October 15, 1993, employers operating voluntary retirement schemes for their employees are required to register their schemes with the ORS Office within a two-year period. The registration deadline will expire on October 15.

Registrar of Occupational Retirement Schemes, Mrs Pamela Tan, called for employers to take immediate action and get prepared for registration.

She said: "Registering retirement scheme is good for employers and employees, and it is required by law. As the deadline is fast approaching and time is running out, registering retirement schemes should be one of the top priorities for employers.

"The application procedure is not complicated but employers may need time to prepare the required documents, such as a solicitor's statement and an auditor's statement in support of the application.

"In this respect, employers will have to co-ordinate closely with their scheme administrators, auditors and solicitors in the preparation of these documents. So act now."

She continued: "Employers may be prosecuted and face penalty of up to $500,000 fine and two years imprisonment should they operate an unregistered scheme after October 15, 1995. The Office will not be extending the deadline."

In order to remind employers of timely scheme registration, the ORS Office is going to introduce a series of advertising programmes at the final stage promotion. A new television commercial will be screened next week highlighting the importance of immediate scheme registration.

In addition, the Office will also launch other marketing initiatives in the coming months, such as radio announcement of public interest, advertising campaign at Mass Transit railway stations and trains, and newly designed posters at high traffic locations to urge employers to take prompt actions.

The ORS Office also runs a 24-hour hotline 2867 4642 to answer public enquiries.

The Occupational Retirement Schemes Ordinance has been enacted since October 15, 1993. The purpose of the Ordinance is to set up a registration system ensuring that all private occupational retirement schemes are properly regulated and that retirement benefits will be paid when they fall due.

21

It stipulates major safeguards to enhance the security of such schemes, including the separation of scheme assets from employer assets, adequate funding of the schemes, regular independent audits and actuarial reviews, disclosure of information to scheme members, independent trusteeship and restrictions on "self' investments.

Note to Editors:

For further information, please contact Charles Lankester, Grace Sek or Cynthia Ma of Shandwich Hong Kong Limited on 2867 4642.

End/Thursday, July 13, 1995

• Lantau taxi to charge new fares *****

Fares for Lantau taxi will be revised tomorrow (Friday).

The flagfall for the first two kilometres will be $10 and subsequent charges will be revised to $1 for every 0.2 kilometre travelled. Waiting time charge for every one minute will be $ 1.

The surcharges for baggage, animal or bird carried and for every hiring arranged through telephone booking will remain unchanged.

A spokesman for the Transport Department reminded taxi owners that the taxi fare table to be displayed inside a taxi should show the new fare scale starting from the effective date of the fare increase. He added that pending the conversion of taximeters, taxis may charge the revised fares starting tomorrow by displaying a conversion table showing the revised scales.

End/Thursday, July 13, 1995

I.

22

Reminder on deadline for returning survey questionnaires ♦ ♦ ♦ ♦ ♦ ' *

The Census and Statistics Department today (Thursday) reminded sampled establishments in the following surveys in respect of 1994 to return survey questionnaires :

Annual Survey of Industrial Production;

Annual Survey of Wholesale, Retail and Import and Export Trades, Restaurants and Hotels;

Annual Survey of Building, Construction and Real Estate Sectors;

Annual Survey of Transport and Related Services; and

Annual Survey of Storage, Communication, Financing, Insurance and Business Services.

These surveys are conducted annually by the department to collect up-to-date statistical data for evaluating the contribution of various economic activities to Hong Kong’s gross domestic product and for ascertaining their cost structure, operating characteristics and output/sales levels. The survey results are useful to both the government and the private sector in formulating policies and making decisions.

Questionnaires were mailed in April and May to about 25,000 establishments sampled for the 1994 surveys. The establishments concerned are legally required to return the completed questionnaires to the department by July 31.

The Commissioner for Census and Statistics, Mr Frederick HO, today appealed to the managements of all sampled establishments to fulfil their legal and social responsibilities by returning promptly the completed questionnaires and co-operating with officers of the department in the course of the surveys. Those who fail to do so may be committing an offence.

Each questionnaire of these annual economic surveys has been so designed that respondents can complete it by themselves. If necessary, officers of the Census and Statistics Department, who carry a Government Identity Card and a certificate for conducting the respective surveys, will visit the establishments concerned to assist them in completing the questionnaires.

23

Mr Ho pointed out that audited accounts are not essential for the supply of income and expenditure data required by the surveys. The Census and Statistics Department accepts figures based on preliminary accounts or estimates which are correct to the best of the respondents' knowledge at the time of submission of the questionnaire, if audited accounts are not yet available.

He also stressed that information relating to individual establishments would be treated in strict confidence under the Census and Statistics Ordinance. Only aggregate information that does not reveal details of individual establishments will be released.

End/Thursday, July 13

... V * <•

Hong Kong Monetary Authority money market operations

♦ ♦ ♦ * ♦ $ million Time (hours) b’ • • r Cumulative change (Smillion)

Opening balance in the account 2,222 0930 +84

Closing balance in the account 2,281 1000 +84

Change attributable to : 1100 +95

Money market activity +99 1200 +99

LAF today -40 1500 +99

1600 +99

LAF rate 4.25% bid/6.25% offer TWI 119.1 *+0.0* 13.7.95

24

' ''J Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.48 2 years 2705 6.40 101.28 5.73

1 month 5.43 3 years 3804 6.90 102.41 6.03

3 months 5.42 5 years 5006 6.60 100.11 6.68

6 months 12 months 5.45 5.49 5 years M501 7.90 103.61 7.13

Total turnover of EF bills and notes - $14,725 million

Closed July 13, 1995

End/Thursday, July 13, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Monday, July 17,1995

Contents Page No.

Transcript of the Financial Secretary's media session..................... 1

Unemployment and underemployment statistics for March to May......... 2

Report on escape of VMs to be submitted in one week....................... 3

Tuen Mun Road bus-only lane to stay....................................... 4

Index of industrial production for first quarter 1995 .................... 5

Figures by Companies Registry show mixed results.......................... 8

Garment manufacturer jailed for tax evasion............................... 9

Assistance to film industry reaffirmed................................... 10

No new scientific evidence of EMF affecting health....................... 12

Music brings people together............................................. 14

Closure of Kowloon Tong illegal structure sought......................... 14

Water storage figure..................................................... 15

Tender for eight issue of 3-year exchange fund notes..................... 15

Hong Kong Monetary Authority money market operations..................... 17

1

Transcript of the Financial Secretary’s media session *****

The following is a transcript of a question-and-answer session with the press given by the Financial Secretary, Sir Hamish Macleod, after the Community Chest's Employee Contribution Programme Award Presentation Ceremony today (Monday):

FS: Hi. Well, we have just been, really, alerting the public to 'Dress Casual Day’ coming up on 8 September, if I could just get that recorded - Community Chest Fund-raising. But you want to talk about something else, yes?

Question: The unemployment situation.

FS: Yes. As we’ve said, I think, a number of times as these figures have come out, we mustn’t get too excited either way - and I would say this if the figure also went down slightly - about fluctuations from month to month, fairly small fluctuations. But of course, that said, it is disappointing that the trend on those latest figures is still slightly up.

As we’ve said before, we really need to have much better knowledge of what lies behind those figures, both in terms of the unemployed and in terms of the vacancies. And that we are working on, so that is in hand. But meanwhile, as I say, I think clearly, if you look back to some months ago when we got rather used to a figure of around 2 per cent there is cause for some concern. But let's see how we do.

As you know, we are also giving extra effort in trying to match up the unemployed with the vacancies. That seems to be the most practical and quick way of trying to help with the situation.

Any other questions on that?

Question: So what measures are you taking ... (inaudible)?

FS: I'm not here, obviously, to announce any new measures. This is just another month's figures which have come out in the normal way.

Question: Will they go up?

FS: Will next month's go up? Will the next lot of figures? I have no idea whether they will go up. I hope they won't. But as I say. we mustn't gel too excited one way or the other on - actually, it is a minor fluctuation, it's 0.2 per cent But that said. I think we've said rather a lot about the measures which arc being taken by, basically, the Secretary for Education and Manpower. Thank you very much.

End/Monday. July 17. 1995

2

Unemployment and Underemployment statistics for March to May ***** •

The seasonally adjusted unemployment rate for the period March - May 1995 was 2.9%, and the underemployment rate was 1.9%, according to the latest labour force statistics released today (Monday) by the Census and Statistics Department.

The provisional seasonally adjusted unemployment rate for the period April -June 1995 was 3.1%, while the provisional underemployment rate was 2.1%.

Commenting on the latest figures, a Government spokesman said the increase in the unemployment rate was mostly in the construction, retail, restaurant, hotel, and transport sectors, and to a lesser extent also in the manufacturing sector. In some of these sectors, lay-offs had apparently increased. As for the increase in the underemployment rate, this was concentrated mainly in the construction sector.

The spokesman noted that the latest figures reflected a continued slack in the labour market. In overall terms, while total employment in the past few months still recorded some increase when compared with the same period in the preceding yedr, total labour supply rose even faster, thereby contributing to the slack and hence the rise in the unemployment rate.

During the period March - May 1995, the number of unemployed persons was estimated at 82,000. Of this, 4,000 were first-time job-seekers. The number of underemployed persons was estimated at 58,900. During this period, total employment rose by 3.6% over a year earlier, while total labour supply was larger by 4.4%.

The unemployment and underemployment statistics were obtained from a continuous General Household Survey conducted by the Census and Statistics Department. The survey for March - May 1995 covered a quarterly sample of some 12,800 households or 43,500 persons, selected scientifically to represent the land-based civilian non-institutional population in Hong Kong.

Relevant data were obtained from the survey by interviewing each individual member aged 15 or over 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 June 1995 will be available at the Government Publications Centre by the end of September 1995 at $32 a copy.

End/Monday, July 17, 1995

3

Report on escape of VMs to be submitted in one week *****

The initial report of the inquiry ordered by the Commissioner of Correctional Services, Mr Raymond Lai Ming-kee. into the escape of 90 Vietnamese migrants from the High Island Detention Centre yesterday (Sunday), is expected to be submitted to the Security Branch in one week.

The inquiry, chaired by an Assistant Commissioner of Correctional Services, will cover all aspects of the incident including physical security, the adequacy of the operational system in place, and whether or not there was any negligence by staff.

A CSD spokesman said immediate repairs were carried out to seal the holes to the perimeter fences at the North Section of the camp from where the Vietnamese migrants escaped.

"We are currently studying ways in which we can further enhance security from within our own resources," he said.

At about 4 am yesterday (Sunday), a group of Vietnamese migrants was spotted escaping through a hole in the perimeter fence. CSD officers called for reinforcements and gave chase but the escapees had already disappeared into the hills under the cover of darkness.

The Police were then alerted and a major search involving the CSD, the Police, the Marine police and the Government Flying Services to track down the escapees was conducted.

So far, a total of 61 Vietnamese migrants, 59 men and two women, have been accounted for, and those still at large include 28 men and one woman. One of the Vietnamese migrants, a 17-year-old youth apparently drowned yesterday afternoon in a stream at Pak Tam Chung.

The spokesman pointed out that it took the best part of yesterday to conduct a head count to determine how many migrants had escaped and a second count was carried out to determine who as well as to confirm the exact numbers.

High Island Detention Centre, which holds 4.448 Vietnamese migrants, is divided into two sections -- the North Section holds 2.123 people and the South Sections (1 and 2) hold a total of 2,325.

End/Monday, July 17, 1995

4

Tuen Mun Road bus-only lane to stay *****

The Tuen Mun Road bus-only lane scheme will be made a long term measure from next Monday (July 24) in its present form with Sham Tseng Interchange opened to light vehicles.

The decision was made at a meeting of the Govemment/District Board Working Group on Traffic Improvement for the Yuen Long/Tuen Mun - Tsuen Wan/Kwai Tsing Corridor held today (Monday).

At present, the inside lane of the Tsuen Wan bound carriageway of Tuen Mun Road from So Kwun Wat to the Sham Tseng Interchange is designated a bus-only lane between 7 am and 9 am daily except Sundays and public holidays.

Light vehicles of three tonnes and below are allowed to enter Tuen Mun Road both bounds from Castle Peak Road through Sham Tseng Interchange. The speed limit of the Tsuen Wan bound carriageway of Tuen Mun Road at Sham Tseng Interchange for 1.3 kilometres has been lowered to 50 kilometres per hour and vehicles cannot change lanes between the inside and middle lanes in this particular section of the road.

The scheme in its present form was put to trial on June 12. During the past few weeks, a lot of data have been collected and analysed.

Chairman of the Working Group and Assistant Commissioner for Transport, Mr Alan Lui, said the result of analysis of the data showed that bus journey times were a bit longer than before.

"The saving in bus travel time brought about by the original bus-only lane was up to five minutes. It was observed that after the opening of Sham Tseng Interchange the net saving in bus travel time was only up to 3.5 minutes," Mr Lui said.

The Kowloon Motor Bus also reported that with the opening of Sham Tseng Interchange, the average passenger figure of their services via Tuen Mun Road dropped by about 1,000. It was also noted that the total number of franchised bus trips operated via Tuen Mun Road also slightly decreased in the morning peak hours.

"However, an important point to note is that although bus service has been affected slightly by the opening up of Sham Tseng Interchange, it has still become much more reliable than before the introduction of the bus-only lane when there were about 30 loss trips everyday. Bus journey times now arc also more steady," Mr Lui said.

5

It was observed that between 7 am and 10 am, about 1,200 vehicles joined Tuen Mun Road from Sham Tseng and the traffic flow decreased after 9 am. The merging of the traffic on Tuen Mun Road from the interchange was satisfactory. This has resulted in improved traffic conditions and car journey time in Castle Peak Road. Traffic queue in Tuen Mun Town and at Tai Chung Roundabout in Tsuen Wan was each reduced by about half.

Regarding Siu Lam Interchange, opening up this interchange would introduce another break in, or a deletion of a substantial length of the bus-only lane. Between only three to six kilometres of bus-only lane, out of the original 14 kilometres in total length, would remain to operate on Tuen Mun Road. Further delay on bus journeys would be caused in addition to that due to opening of Sham Tseng Interchange.

"Opening up Siu Lam Interchange would mean effectively taking away the bus-only lane and so this is considered not feasible," Mr Lui said.

I

The operation of the bus-only lane and associated measures will be reviewed from time to time.

End/Monday, July 17, 1995

Index of industrial production for first quarter 1995 *****

The index of industrial production for the first quarter of this year increased by 3.7% over the same quarter last year, according to the results of a survey released today (Monday) by the Census and Statistics Department.

This was the largest increase recorded since the second quarter of 1989, and was in line with the pick up in export performance in recent quarter.

The production of the basic metals and fabricated metal products industry had a notable growth of 8.7%, and that of paper products and printing industry increased by 6.4%.

An increase of 5.5% was recorded in the industry group of electrical and electronic products, machinery, professional equipment and optical goods. Within this group, the production of consumer electrical and electronic products increased by 8.6%, and that of machinery, equipment, apparatus, parts and components also increased by 7.0%.

6

Increases were also recorded in the wearing apparel (except footwear) industry (+5.2%); and the textiles (including knitting) industry (+4.5%).

On the other hand, slight decreases of 1.2% and 0.8% were recorded in the food, beverages and tobacco industry; and the chemical, rubber, plastic and non-metallic mineral products industry respectively.

Compared with the fourth quarter of 1994, the index of industrial production showed a notable decrease of 18.7%. This decrease was, however, largely seasonal as the first quarter is usually a low season for manufacturing production due to the Lunar New Year Holidays.

The index of industrial production reflects changes of local manufacturing output in real terms. In other words, it measures the volume of local production after discounting the effect of price changes.

More detailed information can be obtained from the "Quarterly Index of Industrial Production, 1st Quarter 1995" report, which is on sale at $11 a copy at the Government Publications Centre, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong, or at the Census and Statistics Department Publications Section, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai. Regular subscription may also be arranged.

Enquiries about the survey result may be directed to the General Economic Surveys Section of the Census and Statistics Department on tel 2805 6643.

The following table shows the percentage changes in the indices of industrial production. As from the first quarter of 1992, the Hong Kong Standard Industrial Classification (HSIC) is used to form the industry groups and component industries.

1

Indices of industrial production by industry group and selected component industry

(1986 = 100)

Index for % change over

1st Qtr. 1994 4th Qtr. 1994

Industry group / Selected component industry * 1st Qtr. 1995

1. Food, beverages and tobacco 149 -1.2 -15.8

2. • Wearing apparel (except footwear) 96 +5.2 -27.6

3. Textiles (including knitting) 89 +4.5 -34.5

4. Paper products and printing 237 +6.4 -12.3

5. Chemicals, rubber, plastic and non-metallic 59 -0.8 -12.3

mineral products

within which : Plastic products (35) (-9.1) (-20.4)

6. Basic metals and fabricated metal products 91 +8.7 -5.6

within which : Fabricated metal products (84) ( + 1-8) (-H.6)

(except machinery and equipment)

7. Electrical and electronic products, machinery, 160 +5.5 -10.7

professional equipment and optical goods

within which : Consumer electrical (115) (+8.6) (-0.3)

and electronic products

: Machinery, equipment, (238) (+7.0) (-U.0)

apparatus, parts and components

8. Miscellaneous manufacturing industries 75 -6.2 -14.4

ALL MANUFACTURING INDUSTRIES 111 +3.7 -18.7

Notes : 1. Four selected component industries, which carry relatively large weights and are major

components of their relevant industry groups, are also included in the above table. For easy reading, the figures of these selected component industries are shown in brackets.

2. As from tlie first quarter of 1992, the Hong Kong Standard Industrial Classification (HSIC) is used to form the industry groups and selected component industries presented in the above table. For the exact coverage of the industry groups and component industries in terms of HSIC codes, please refer to the publication 'Quarterly Index of Industrial Production, 1st Quarter 1995’.

End/Monday, July 17, 1995

8

Figures by Companies Registry show mixed results ♦ ♦ ♦ ♦ ♦

Figures released by the acting Registrar of Companies, Mr A H Patel, today (Monday) indicated mixed results for the first six months of the calendar year 1995 compared with the same period of 1994.

The Companies Registry figures showed that although the total number of companies registered under the Companies Ordinance at the end of last month was 463,890, an increase of 2.5 per cent over the position at December 31, 1994, the number of new companies registered during the first six months of 1995 was 17,315, 7,732 less than the corresponding period of 1994.

The total number of overseas companies which had established a place of business in Hong Kong under Part XI of the Companies Ordinance at the end of June 1995 was 4,144, an increase of 4.8 per cent over the total number at the end of December 1994.

The number of new overseas companies registered during the first six months of 1995 was 289, an increase of 5.1 per cent compared with the first six months of 1994.

The number of charges on the assets of companies registered in the first six months of 1995 decreased by 16 per cent from 17,598 to 14,838 compared with the first six months of 1994, but the amount secured by those charges increased by 64 per cent from $21,771 million to $35,629 million.

The number of Certificates of Satisfaction, issued when charges are repaid, amounted to 8,805 in the first half year of 1995, a reduction of 11 per cent from the same period last year, while the amount of indebtedness released, showed a drop of 52 per cent to $5,511 million.

During the period a total of 79 prospectuses of public companies, including 44 in respect of mutual funds, were registered compared with 103 prospectuses, including 24 in respect of mutual funds, during the corresponding period in 1994.

The number of documents received for filing during the first six months of 1995 compared with that for the same period in 1994 increased by 8 per cent from 602,184 to 651,313 and the number of searches made by the public during the first six months of 1995 compared with that for the same period in 1994 decreased by 3.4 per cent from 975,615 to 942,016.

9

The total number of summonses issued by the Registrar of Companies against companies and their directors for breaches of the Companies Ordinance, mainly for late filing of documents in the first six months of 1995 was 118, compared with 75 during the same period in 1994.

Eighty-one convictions were obtained in the period compared with 72 in the same period of 1994 and 47 cases remain to be heard by the court (28 in the same period of 1994). The total amount of fines imposed for convictions in the first half year of 1995 was $1,301,760, compared with $1,067,875 in the corresponding period in 1994.

End/Monday, July 17, 1995

Garment manufacturer jailed for tax evasion ♦ ♦ * ♦ ♦

After a month long trial in the District Court, Hong Kong’s largest tax evasion case concluded today (Monday) when a 57 years old garment manufacturer was convicted of tax evasion and sentenced to 15 months jail. In addition, Yip Kam-sing was fined a total of $3,725,701 - 100 per cent to the tax evaded - and was ordered to pay $100,000 costs.

Yip, a director and shareholder of York Industries Ltd, was charged with six counts of tax evasion by submitting false tax returns contrary to Section 82(1 )(d) of the Inland Revenue Ordinance, and six counts of tax evasion by creating false cloth material purchases in the company’s books of accounts, which had the effect of understating profits in the tax returns, contrary to Section 82(1 )(g) of the Ordinance. The tax evasion charges covered six years from 1985-86 to 1990-91.

Delivering judgment, Judge Kilgour said the prosecution was base on a comprehensive and meticulous investigation and the case against Yip was a formidable one. He found Yip had concocted four companies and submitted false invoices and receipts to overstate purchases. The false purchases amounted to about $22 million and the profits tax evaded was $3.7 million. He held that the testimony of the first defence witness was unconvincing and misleading.

The tax evasion offences involved the submissions by Yip to the Inland Revenue Department (IRD) of profits tax returns for the tax assessment years 1985-86 to 1990-91 in which assessable profits had been understated, and as a result, profits tax evaded.

10

Senior Assistant Crown Prosecutor, Mr Michael Blanchflower, had told the Court that the overstatement of purchases reduced net profits of $21.9 million which was on average 60.46 per cent of the full profits and evaded tax of $3.7 million. He also stressed that this was the largest criminal tax evasion case brought before Hong Kong courts.

An IRD spokesman reminded the public that tax evasion is a criminal offence. Upon conviction, the maximum sentence is three years imprisonment and a fine of $20,000 on each charge (or $25,000 for an offence committed after July 31, 1994), plus a further fine equivalent to three times the amount of tax undercharged.

End/Monday, July 17, 1995

Assistance to film industry reaffirmed *****

The Government reaffirmed its positive support and assistance to the local film industry in its production work at a meeting with the industry's representatives today (Monday).

The meeting, chaired by the Deputy Secretary for Recreation and Culture, Mr Fred Ting, and attended by officials from the Trade and Industry Branch, Royal Hong Kong Police Force, Information Services Department, Civil Aviation Department, Civil Engineering Department, Urban Services Department, and Television and Entertainment Licensing Authority, was to discuss the film industry's proposal to set up a Film Commission in Hong Kong.

Also attending were four members of the Legislative Council Recreation and Culture Panel, including Mr Man Sai-cheong, Mrs Selina Chow, Mr Chan Wai-yip and Mr Howard Young, and a representative from the Hong Kong Tourist Association.

Members thoroughly discussed and exchanged views on the proposed Film Commission.

On location shooting, members were informed that various government departments had in their own area of responsibilities already taken necessary measures to promote the long-term interests of the film industry and to render assistance to location shooting commensurate with resources available.

11

For example, the Police has produced a set of advisory guidelines for film producers, setting out what activities are not allowed on location shooting and what activities need special approval by the Commissioner of Police or other authorities. Last year, the Police approved 97.5 per cent of the 20,677 requests and applications for location shooting permits. Those rejected were mainly applications which might pose unnecessary danger to the public or caused confusion or disorder in public places.

The guidelines also give advice to film producers of the appropriate actions and response in case of extortion. To deal with the problem of violence and triad infiltration in the film industry, a special team was established under the Organised Crime and Triad Bureau in 1992.

The two municipal councils also have specific guidelines on film location shootings in places managed by them. Statistics show that over 60 requests for location shooting at the Hong Kong Culture Centre, City Hall and Hong Kong Coliseum were approved in the past two years.

Furthermore, the Information Services Department is producing a handy guide to provide easy reference on procedures and regulations on location shooting.

As regards calls for Government assistance in the overseas promotion of local films, the representatives were told that the Trade and Industry Branch had commissioned a consultancy study on the overall promotion of Hong Kong services.

It was noted that a number of film industry associations such as the Movie Producers and Distributors Association and the Motion Picture Industry Association have been invited to give their views on the recommendations made in the report concerning the film industry.

Following a two-hour meeting, the Government representatives agreed to incorporate the film industry representatives' views into a revised report, setting out the very strong reasons why they would like to establish a Film Commission and what role it is expected to play. Attempt will also be made to quantify the financial resources required.

This report is expected to be completed in two months' time and further consultation with the film industry and interested Legislative Council members will be made.

End/Monday, July 17. 1995

12

No new scientific evidence of EMF affecting health * * * ♦ ♦

The Working Group on Electric and Magnetic Fields today (Monday) reiterated that there was no conclusive scientific evidence of adverse health effects on normal individuals arising from exposure to power frequency Electric and Magnetic Fields (EMF).

"Following the Working Group's meeting with the three overseas experts on EMF on July 4, it was found that there is no new convincing scientific evidence that exposure to EMF would affect human health," said the Working Group chairman, Mr John Chan Hing-nin, who is also the Assistant Director of Electrical and Mechanical Services (Electronics and Electricity Legislation).

I

Mr Chan made the remarks during a meeting between the Working Group and representatives of Yick Yuen Villagers today to exchange information on EMF for a better understanding of each other’s view points on the issue.

He stressed that the Working Group still considered that the adoption of the International Radiation Protection Association (IRPA) guidelines, so far the best available internationally accepted guidelines, was appropriate for Hong Kong.

Mr Chan explained that researches and studies on the health implications of EMF had been conducted in various countries since the 70’s.

"After 20 years of research, the results of numerous studies conducted so far, mainly epidemiological studies, are still providing conflicting views and findings, and the scientific community in general is still unable to reach any consensus on the possible health risk of EMF," he said.

Because of the inconclusive epidemiological results. Mr Chan continued, various countries had brought in research scientists to investigate EMF in the laboratories.

One of the biggest research programmes is the five-year (1992-97), US$65 million EMF RAPID programme in the United States of America. All laboratory results available to date found no adverse health effects from EMF exposures.

"As an independent body to provide advice on EMF. the Working Group has to look into this issue from a balanced viewpoint taking into account the views held by mainstream scientific community.

13

"The Working Group has reviewed not only various individual researches and studies, but also, more importantly, those authoritative and comprehensive studies conducted by well recognised international organisations, national authorities and independent panels and working parties apppointed to review the issue.

"There have been more than 70 such major comprehensive studies by government bodies and scientific panels so far and none of them has concluded that power frequency EMF causes adverse human health effects,” he noted.

Mr Chan stressed that the information presented by the three overseas experts invited by the Fei Ngo Shan residents had already been considered and covered by the above mentioned authoritative and comprehensive studies reviewed by the Working Group.

He told the residents that the EMF exposure guidelines adopted in Hong Kong were based on those published by the IRPA in collaboration with the World Health Organization (WHO) in 1990. Both organisations confirmed recently that such guidelines are still valid and still reflect their positions on the subject.

Mr Chan pointed out that the Working Group had been maintaining communication links with organisations and authorities in many countries world-wide.

"Not a single country has confirmed that there is convincing evidence to support a connection between EMF exposure and adverse human health effects, nor that there is scientific base to establish more stringent EMI standards and other binding regulations.

"In fact, many countries have now adopted or recommended the use ol IRPA or very similar EMF exposure guidelines, including Australia. New Zealand. Italy, Germany, United Kingdom. France, European Union and Taiwan.

"Nevertheless, the Working Group will continue to monitor the world-wide developments on this issue." he stressed.

End/Monday. July 17. 1995

14

Music brings people together *****

The Asian Youth Orchestra brings together many young lovers of music from all over the region to share their pleasure and enthusiasm for music with each other, and to share their music with many audiences.

The Deputy to the Governor, Mrs Anson Chan, said this today (Monday) when officiating at the opening ceremony of the Asian Youth Orchestra Rehearsal Camp.

"It gives you the opportunity to find new and deeper ways of achieving that 'concord of sweet sounds', through the discipline of having to work together in harmony and through the delight of sharing ideas and interests with new friends," she said.

The Orchestra, brought together for a season each year, drawing together people from many countries and cities, sharing together ideas, vitality and influence, is one of the stars illuminating the modern life of the region, Mrs Chan said.

End/Monday, July 17, 1995

Closure of Kowloon Fong illegal structure sought

*****

The Building Authority is seeking to close an unauthorised structure in Kowloon l ong so that it can be demolished without endangering the occupants and the public. The single-storey unauthorised structure used for dwelling is located on the roof of a building at 44 Broadcast Drive.

A notice of applying for a Closure Order from the District Court under the Buildings Ordinance on September 6 was posted on the premises today (Monday).

Demolition work is expected to start as soon as the Closure Order is issued.

End/Monday. July 17. 1995

15

Water storage figure ♦ ♦ ♦ ♦ *

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 75.7 per cent of capacity or 443.360 million cubic metres.

This time last year the reservoirs contained 464.858 million cubic metres of water, representing 79.3 per cent of capacity.

End/Monday, July 17, 1995

Tender for eighth issue of 3-year exchange fund notes ♦ ♦ ♦ ♦ ♦

The Hong Kong Monetary Authority announces that tender for the eighth issue of three-year Exchange Fund Notes will be held on Monday (July 24) for settlement on Tuesday (July 25).

Similar to the previous issue, an amount of HKS500 million three-year notes will be on offer.

In addition to that, another HK$100 million will be held as reserve by the Hong Kong Monetary Authority for supply to market makers in the secondary market.

The notes will mature on July 27, 1998, and will carry interest at the rate of 6.16 per cent per annum payable semi-annually in arrears.

Members of the public who wish to tender for the notes may do so through any of the market makers or recognised dealers on the published list which can be obtained from the Hong Kong Monetary Authority on 30th floor, 3 Garden Road, Hong Kong, tel 2878 8150.

Each tender must be for an amount of HK$50,000 or integral multiples thereof.

16

Hong Kong Monetary Authority Exchange Fund Note Programme Tender information

Tender information for the eighth issue of 3-Year Exchange Fund Notes:

Issue Number : 3807

Tender Date and Time : Monday 24 July 1995, 9.30 am to 10.30 am

Issue and Settlement Date : Tuesday 25 July 1995

Amount on Offer : HK.S500 million plus an additional HK$100 million as reserve stock for the Monetary Authority

■ ’•'.I . - Maturity : Three years

Maturity Date : 27 July 1998

Interest Rate : 6.16 % per annum payable semi-annually in arrears

Interest Payment Dates : 25 Jan 1996, 25 Jul 1996, 27 Jan 1997, 25 Jul 1997, 26 Jan 1998, 27 Jul 1998

Tender Amount : Each tender must be for an amount of HK$50,000 or integral multiples thereof. Members of the public who wish to tender for the Notes may approach Market Makers or Recognised Dealers on the published list.

Other details : Please see Information Memorandum published or approach Market Makers or Recognised Dealers.

End/Monday, July 17, 1995

17

Hong Kong Monetary Authority money market operations ♦ * * * ♦

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,663 0930 +648

Closing balance in the account 1,813 1000 +648

Change attributable to : 1100 +650

Money market activity +650 1200 +650

LAF today -500 1500 +652

1600 +650

LAF rate 4.25% bid/6.25% offer TWI 119.2 *+0.2* 17.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.37 2 years 2705 6.40 101.01 5.89

1 month 5.41 3 years 3804 6.90 101.92 6.23

3 months 5.45 5 years 5006 6.60 99.27 6.89

6 months 5.50 5 years M501 7.90 102.75 7.34

12 months 5.58

Total turnover of EF bills and notes - $10,622 million

Closed July 17, 1995

End/Monday, July 17, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Tuesday, July 18,1995

Contents Page No.

Proposal to tackle industrial safety....................................... 1

Government fully subscribes to equal opportunities......................... 3

Statement on ICC Roads and Bridges Panel meeting........................... 6

Government's account on the July 7 Whitehead incident...................... 7

Nomination forms for LegCo candidates ready from tomorrow.................. 8

Payroll and wage statistics for 1st quarter 1995 .......................... 9

Muk Wu 'C' pumping station opens.......................................... 12

$4.IM loan granted for R & D project...................................... 13

Hong Kong to mark 50th anniversary of liberation.......................... 15

Final notice on tax return................................................ 16

Closure of Sham Shui Po illegal structures sought......................... 16

Hong Kong Monetary Authority tender results............................... 17

Hong Kong Monetary Authority money market operations...................... 18

1

Proposal to tackle industrial safety *****

A comprehensive review on industrial safety conducted by the Government recommended that Hong Kong should change from its conventional enforcement approach to a safety management system in tackling industrial safety.

This was stated today (Tuesday) by the Secretary for Education and Manpower, Mr Michael Leung, when he released the Consultation Paper on the Review of Industrial Safety in Hong Kong for public consultation.

Mr Leung pointed out that the existing enforcement approach relied heavily on inspections and prosecutions to ensure compliance of safety legislation.

"It has many drawbacks and the most critical one is that it does not help build up a safety culture among the employers and workers so as to bring about long term improvements to the safety standards," he said.

The review re-affirms that the primary responsibility for safety at work rests with the proprietors and workers because they are the people who create and work with the risks.

"The ultimate goal is self-regulation by proprietors and their workforce to uphold safety at workplaces. To achieve such goal, the Government should provide a legislative framework requiring proprietors to adopt a safety management system at the workplace," Mr Leung said.

He noted that the safety management system had proved to be effective in improving industrial safety records in overseas countries such as UK, Japan, Australia and Singapore.

"They have taken less enforcement actions but have witnessed significant decline in accident rates in recent years. Local experience also indicated that the best performers in industrial safety are those companies such as utility companies and leading contractors that have embraced self-regulation and safety management," he said.

The review recommended that a safety management system suitable for Hong Kong should contain the following components:

(a) a company safety policy;

(b) safety plans;

(c) safety committees;

(d) regular safety audits or safety reviews;

(e) general safety training for all workers; and

(f) specific training for workers engaged in hazardous trades or processes.

2

Subject to certain qualifications such as the size of employment or nature or work, these components should, in varying degrees, be applied by law to different industries covered by the Factories and Industrial Undertakings Ordinance, it was recommended.

Mr Leung stressed that the adoption of a safety management system should not create significant financial burden on employers.

"Measures such as safety committees, safety audits, and safety training for workers will only add marginally to the overall operating costs of the establishment concerned.

"The additional costs for an effective safety management system will be more than offset by fewer stoppages and disruptions to work arising from industrial accidents," he said.

As a safety management system is a relatively new concept in Hong Kong, the Government, in conjunction with the Occupational Safety and Health Council and other training authorities, will undertake an on-going and enhanced education and training programme to introduce and promote the system to employers and workers.

"We also recognise that not all employers will embrace the self-regulation approach immediately. We therefore propose to give additional resources to the Labour Department to step up enforcement efforts to ensure that safety standards will not slip during the time when employers begin to adopt the safety management system in their workplace," he said.

The review was carried out subsequent to one of the policy commitments of the Secretary for Education and Manpower in 1994.

It recommended a wide range of proposals and measures to improve industrial safety standards with strong focus on the construction industry which has the worst industrial record, accounting for over one third of all accidents and the bulk of fatalities.

Mr Leung stressed that the unsatisfactory industrial safety record of Hong Kong was a matter of great concern to the Government, and he appealed to employees, employers, professional bodies and all concerned parties to work closely with the Government to bring about a safe working environment for everybody.

■ v •*

The Education and Manpower Branch welcomes written submissions on the review before the consultation exercise ends at the end of September. Submission should be sent to the Secretary for Education and Manpower at ninth floor, West Wing, Central Government Offices, Lower Albert Road, Central, Hong Kong, or by fax on 2869 0729.

End/Tuesday, July 18, 1995

3

Government fully subscribes to equal opportunities ♦ * * * *

The Government fully subscribes to the idea of equal opportunities and had taken positive and proactive steps to realise this goal, the Secretary for Home Affairs, Mr Michael Suen, said today (Tuesday).

Mr Suen was speaking at a seminar and workshop on equal opportunities jointly organised by the Chinese General Chamber of Commerce, the Chinese Manufacturers' Association of Hong Kong, the Employers' Federation of Hong Kong, the Federation of Hong Kong Industries and the Hong Kong General Chamber of Commerce.

The Sex Discrimination Ordinance, he said, was passed by the Legislative Council last month. The objective of the ordinance was to make sex discrimination, as well as discrimination on the grounds of pregnancy and marital status and sexual harassment, unlawful.

The provisions of the ordinance are enforced through two channels: the Equal Opportunities Commission and the court.

Under the ordinance, the Commission is empowered to provide assistance to persons who have been subjected to unlawful discrimination either by conciliation of the matter in dispute, or, where conciliation fails, by providing appropriate assistance in respect of proceedings before the District Court.

Mr Suen said: "None of us would wish to see Hong Kong turning into a litigious society, the conciliation role of the Commission is therefore particularly important as it will help to reduce the number of disputes required to be resolved by proceedings before the court."

To enhance the effectiveness of the Commission's conciliation work, it is empowered to make rules to direct persons relevant to a complaint to attend conferences, with a view to resolving the matter in dispute. The Commission is also empowered to carry out formal investigations and issue enforcement notices requesting persons to discontinue their discriminatory practices.

"Taken together, the provisions in the ordinance will provide an efficient and accessible avenue of redress for the aggrieved," Mr Suen stressed.

4

Outlining the major provisions of the Sex Discrimination Ordinance, Mr Suen said both employers and employees would be affected by the ordinance which to a large extent set out new norms of behaviour.

In order to facilitate all parties concerned to better understand their rights and obligations, the Equal Opportunities Commission would develop Codes of Practice, in consultation with employer and employee organisations in respect of employment matters.

Mr Suen said the Government expected to set up the Commission towards the turn of the year and to bring the provisions in the ordinance into force by phases.

As to legislating against other types of discrimination, Mr Suen paid tribute to Legislative Councillor, Ms Anna Wu, whom he said had done a lot for Hong Kong through her own initiative in promoting equal opportunities. "I think we have taken her lead in this very important area of work and where we differ is in the pace of development of legislation," he said. •••'■

Mr Suen stressed that it was important to take things step by step and the Administration had to make sure that the community is ready for it.

•u f.o

"The behaviour of people is not something that is susceptible to legislative ,r. measures. Education is far more important in this field," he said.

He added: "It would be wrong to say that if the Government feels unable to support Ms Wu's bills, it is equated to the Government not supporting the principle of equal opportunities."

He said the Administration had reservations on the readiness of the community in accepting a comprehensive legislative approach against so many different types of discrimination at the same time.

"We are concerned that the bills which seek to change the public's attitude and impose new moral standards, have not been put forward on the basis of wide public consultation.

"The community at large simply did not have a chance to discuss the principles and main issues at stake and to debate on the alternative courses of action to remove discrimination.

"As a result, the public at large are not aware of the impact of Ms Wu's bills on their daily life and the society as a whole," he said.

5

Mr Suen asserted that it was important to recognise that effective legislative measures should be preceded by social acceptance of a general duty to respect the rights of the others.

Turning to proposals on legislation against age discrimination, Mr Suen said the problem of rising unemployment caused by structural changes in the economy should not be confused with that of age discrimination.

Pointing out the fact that the Hong Kong labour market operated on the forces of demand and supply, he said legislation would not affect employers’ demand for workers with particular skills and knowledge and thus would not create job opportunities.

He noted that the causes of unemployment was thoroughly debated in early June when the Governor held a summit meeting on this matter.

The Governor also announced a package of 13 measures to tackle unemployment. Positive action is now in hand to implement this series of short, medium and long term measures which include actions to clamp down on illegal employment and to step up enforcement action against abuses of the labour importation scheme and to step up employment service.

On age discrimination, Mr Suen said an undertaking was given to study whether discriminatory practices were contributing to rising unemployment and the Labour Department had started a preliminary survey on this subject.

Asserting that he was not discounting the need to legislate against age discrimination or any other types of discrimination, he said as a responsible Government with the long term interest of Hong Kong in mind, it was essential that the Administration tackled this subject rationally.

Mr Suen pointed out that the Government had clearly set out its position in respect of equal opportunities to Legislative Council Members in no less than four occasions in the past 11 months.

’’This is very clear: anti-discrimination legislation is a new area of law in Hong Kong. The social, economic and legal implications of such legislation are not yet fully appreciated by the community at large.

’’Therefore, it would not be prudent of us to proceed down the legislative route without first having a chance to examine the problems, analyse the policy options and assess their implications.

6

"We must also have the right social climate before seeking to impose values and standards of behaviour on members of our community: workers, employers, students, teachers, service providers, consumers, landlords and tenants, the elderly and the young. We do not want to turn Hong Kong into a litigious society by over legislation," he said.

In view of Legislative Councillors' concern about discrimination on the grounds of age, family status and sexual preference, Mr Suen said the Government had already given an undertaking to conduct a study very soon in respect of discrimination in these three areas.

Progress of the study would also be reported to the Legislative Council from time to time, he added.

Summing up, Mr Suen said the Administration had made big strides in recent years through various educational and administrative measures to promote equal opportunities.

He was confident that the fine tradition of public consultation and working on common ground would continue and the Administration would pursue the social ideal of equal opportunities in a measured manner, preserving the social cohesion which was dearly valued by everyone.

End/Tuesday, July 18, 1995

Statement on ICC Roads and Bridges Panel meeting ♦ ♦ * ♦ ♦

The Roads and Bridges Panel of the Infrastructure Coodinating Committee held its first full meeting in Guangzhou today (July 18).

The meeting reviewed fully the coordination work done since the Chinese side put forward the Lingdingyang Bridge and Shenzhen Western Corridor proposals on January 23 this year. The consultations were conducted in a friendly manner and were very effective.

To date, the following consensus has been reached with regard to the construction of the proposed projects.

7

Both side agreed that in view of the economic development of Hong Kong, Guangdong and the whole of China, to develop additional cross-border transport capacity was necessary.

Taking into account the impact of the above two proposals on Hong Kong’s transport infrastructure and environment, the two sides have discussed the work plan for carrying out studies on the above subjects and agreed to conduct such studies in a phased manner in accordance with the different functions and the progress made in the preliminary work of the two proposals.

Both sides indicated that they would, as in the past, strengthen their cooperation and work closely in a positive manner.

The above mentioned consensus will be reported to the third plenary of the Infrastructure Coordinating Committee.

End/Tuesday, July 18, 1995

Government's account on the July 7 Whitehead incident *****

In response to media enquiries on an article in an English language newspaper today (Tuesday) relating to an incident which took place in the Whitehead Detention Centre on July 7, a government spokesman gave an account of what actually happened on that occasion:

"At about 2 pm on July 7, 1995, the management of the Whitehead Detention Centre were informed by International Social Service (ISS) Hong Kong Branch, the Non Government Organisation (NGO) responsible for the delivery of education in the camps, that some Vietnamese Migrant (VM) students had refused to sit for their final examinations and that the Senior Centre Co-ordinator of ISS was dealing with the situation.

"Forty-five minutes later, the management were asked to take the children concerned back to their respective sections in the Centre. Five Correctional Services Department (CSD) officers arrived at the school complex. Eighty-six students and eight teachers were returned to Section 2 at 3.20 pm. All of them left peacefully and of their own accord.

8

"After the children from Section 2 had left, those belonging to Section 3 were asked to gather at the school compound. Thirty of them did so and they started shouting. They were joined by the rest of the student population numbering about 530. Some of them carried blackboards with slogans. They were protesting against the decision to terminate secondary education in the camps. The 81 VM teachers remained in their rooms and did not join the students. Given the situation, reinforcements were called in and shortly afterwards 52 officers arrived.

"Following counselling by CSD staff, a letter from the students was handed over to a United Nations High Commissioner for Refugees (UNHCR) representative at about 5.15 pm. Thereafter, the students returned peacefully to their sections.

"The police were never alerted or involved in this incident. There was no confrontation between CSD staff and VMs and neither were any children slapped or hit by CSD staff."

End/Tuesday, July 18. 1995

Nomination forms for LegCo candidates ready from tomorrow *****

Prospective candidates for the September Legislative Council Elections may from tomorrow (Wednesday) obtain nomination papers from the Registration and Electoral Office (REO) on 10th floor. Harbour Centre. Wan Chai: and all the 18 District Offices from tomorrow (Wednesday).

An REO spokesman said today (Tuesday) nomination papers were made available well before the commencement of nomination on August I was to facilitate candidates in seeking subscribers to their nomination.

Completed nomination papers should be delivered in person to the Returning Officer for the relevant constituency during office hours from August I to 14.

Different types of nomination papers will be used for: (a) 20 geographical constituencies; (b) nine new functional constituencies (FCs); (c) 17 old FCs; (d) the Urban Council and Regional Council FCs: (c) Rural FC: and (f) the Election Committee Constituency.

Enquiries about the nomination may be directed to 2881 7056 or 2827 1641.

9

Meanwhile, the appointment of the returning officers (ROs) for the LegCo elections will be gazetted on Friday. A total of 44 ROs will be appointed for the 20 geographical constituencies, 29 functional constituencies and the Election Committee constituency.

A Chief Returning Officer will also be appointed for the overall supervision and co-ordination in the central counting station.

Enquiries concerning the appointment of the ROs may be directed to the REO's information unit.

End/Tuesday, July 18, 1995

Payroll and wage statistics for 1st quarter 1995 * ♦ ♦ ♦ ♦

Average labour earnings covering all major sectors surveyed, as measured by payroll per person engaged, recorded a notable increase of 11.5% in nominal terms in the first quarter of 1995 over a year earlier, according to statistics released today (Tuesday) by the Census and Statistics Department.

After discounting changes in consumer prices, the increase was 1.9% in real

terms.

Analysed by sector, average payroll per person engaged in transport, storage and communication recorded the fastest increase, by 13.0% in nominal terms or 3.2% in real terms in the first quarter of 1995 over a year earlier; followed by the manufacturing sector, by 11.1% in nominal terms or 1.5% in real terms; financing, insurance, real estate and business services, by 10.7% in nominal terms or 1.1% in real terms; community, social and personal services, by 9.8% in nominal terms or 0.3% in real terms; and wholesale, retail and import/export trades, restaurants and hotels, by 9.6% in nominal terms or 0.1% in real terms. Thus all major sectors surveyed recorded increases in average labour earnings both in nominal terms and in real terms.

The overall wage index covering selected major sectors showed a less rapid increase than average labour earnings. This index rose by 9.0% in nominal terms in March 1995 over a year earlier.

After discounting changes in consumer prices, the index showed a marginal decrease of 0.4% in real terms. The relatively faster increase in earnings as compared to wages was due to more overtime pay and the issue of irregular payments in some sectors, which were covered in earnings but not in wages.

10-

The wage indices for wholesale, retail and import/cxport trades, restaurants and hotels and for financing, insurance, real estate and business services showed increases in real terms between March 1994 and March 1995.

The wage indices for the manufacturing sector, transport services and personal services recorded decreases of different magnitudes in real terms. Nevertheless, these decreases were affected to some extent by a high base of comparison in March 1994.

Year-on-year changes in the indices of payroll per person engaged and wage indices for selected major sectors, in both nominal and real terms, are shown in Table 1 and Table 2 respectively.

Statistics on average payroll per person engaged are compiled at quarterly intervals based on the results of the Labour Earnings Survey conducted by the Census and Statistics Department.

The wage indices are compiled from the same survey at half-yearly intervals for March and September of the year. The wage indices cover both manual and non-manual workers up to the supervisory level.

Average payroll includes wages as well as all other irregular receipts such as bonuses and overtime payments. Statistics on average payroll tend to show larger quarter-to-quarter changes, affected by the number of hours actually worked and the timing of payment of bonuses and back-pay.

Detailed breakdowns of the above statistics are published in the ’‘Quarterly Report of Employment, Vacancies and Payroll Statistics, March 1995" and the "Half-yearly Report of Wage Statistics, March 1995". They will be available shortly, at $44 and $35 per copy respectively, at the Government Publications Centre, Queensway Government Offices, Low Block, Ground Floor, 66 Queensway, Hong Kong and at the Publications Section of Census and Statistics Department, 19thc floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

For enquiries about statistics on average payroll per person engaged, please contact the Census and Statistics Department on tel 2582 5076. As for enquiries on wage statistics, please call the department at 2582 4744.

JI

Table 1 : Year-on-Year.Change in Indices of Payroll Per Person Engaged by Selected Major Sector

% change for 1st Quarter 1995 over 1st Quarter 1994

Selected Major Sector in nominal terms in real terms

Manufacturing + 11.1 + 1.5

Wholesale, Retail and Import/Export Trades, Restaurants and Hotels +9.6 +0.1

Transport, Storage and Communication + 13.0 +3.2

Financing, Insurance, Real Estate and Business Services + 10.7 + 1.1

Community, Social and Personal Services +9.8 +0.3

All Sectors Above + 11.5 + 1.9

Table 2 : Year-on-Year Change in Wage Indices by Selected Major Sector

% change for March 1995 over March 1994

Selected Major Sector in nominal terms in real terms

Manufacturing +6.2 -2.9

Wholesale, Retail and Import/Export Trades, Restaurants and Hotels + 10.1 +0.6

Transport Services* + 8.2 -1.1

Financing, Insurance, Real Estate and Business Services + 10.2 +0.7

Personal Services tt +7.7 -1.6

All Sectors Above +9.0 -0.4

* Excluding industries related to storage and communication

# Excluding industries related to community and social services

End/Tuesday, July 18, 1995

12

Muk Wu 'C' pumping station opens *****

The $234 million Muk Wu 'C pumping station is at the forefront of a scheme to increase water supply from the East River to meet Hong Kong's demand now and in the future, the Secretary for Works, Mr James Blake, said this (Tuesday) morning.

Speaking at the inauguration ceremony of the station, Mr Blake added that the station had built-in provision for additional pumpsets to meet Hong Kong's demand well into the next century.

"The project is a complex piece of civil, mechanical and electrical engineering, of which much is unseen, being effectively buried under the landscaping.

"Its facilities have had to be engineered to harmonise with the existing 'A' and 'B' pumping stations, and with major interconnections carried out without disruption to the normal reception and transfer of water from Guangdong," Mr Blake said.

In order to safeguard those installations, he said, a concurrent scheme had been implemented to provide flood protection.

"This is highly evident by the obvious presence of substantial concrete walls around each station, each with entrances protected by removable stop-logs, and the areas and buildings within further protected by automatic, pumped dewatering systems," he added.

Mr Blake noted that water demand had grown by over 800 per cent in the past three decades since 1960, when water was first imported from the Shenzhen Reservoir to serve a population of three million consuming 0.279 million cubic metres of water per day, to the present day of six million people consuming 2.56 million cubic metres per day.

The Muk Wu 'C' pumping station is the second largest raw water pumping station ever built in Hong Kong, and together with the 'A' and 'B' stations, the complex has a total capacity of 3.963 million cubic metres per day and handles the water supply from Guangdong which amounts to about 70 per cent of I long Kong's daily supply.

The Director of Water Supplies, Mr Hu Man-shui. said at the opening that the station was designed to receive and distribute, ultimately in conjunction with the existing 'A' and 'B' stations. 1,100 million cubic metres of water from Guangdong annually.

13

Considerable flexibility had been built into the system by integrating the new station with those existing, in the form of cross-connections and control valves.

If

”In addition, a reverse pumping facility has been incorporated into this new Muk Wu ’C’ pumping station to deliver up to 0.54 million cubic metres of water per day, from Plover Cove Reservoir via Tai Po Tau ’D’ pumping station to Au Tau, during the annual maintenance period in December when no water is supplied from Guangdong.

"The project being inaugurated today comprises a twin 2,400 millimetres diameter incoming pipes, laid under the Shenzhen River and its flood plain, terminating in two separate but interconnected reception tanks at the pumping station. "The water is then pumped into both the new and existing central, western and eastern aqueducts through a complex system of interconnections, valves, measurement and surge protection devices," he said.

Of particular importance to that facility, Mr Hu said, was the construction of protective flood walls around, not just Muk Wu ’C pumping station, but also the new electric substation and Muk Wu ’B’ pumping station.

Construction work on the station commenced in May 1993 and was completed in May this year.

End/Tuesday, July 18, 1995

$4.IM loan granted for R & D project *****

The Applied Research Council Company Limited (ARC) today (Tuesday) signed a loan agreement with a company to help it develop an advanced in-circuit testing equipment under the Applied Research & Development Scheme.

Under the loan agreement, ARC (formerly known as Applied Research and Development Company Ltd), will grant a loan facility of $4.1 million to Concord Technology Ltd for conducting an applied R & D project to develop an advanced in-circuit tester code-named T-800 for bare and loaded electronic circuit boards, making use of multi-CPU technique.

The aim of the R & D scheme is to promote applied research and development activities in Hong Kong by providing funding support as a catalyst.

14

Speaking at the contract signing ceremony, acting Assistant Director-General of Industry, Mr Fred Leung, said ARC had so far received a total of 36 applications, of which funding support had been given to 12 projects. "The total amount of funding allocation is just over $40 million,” Mr Leung said.

’’The project deliverables of these funded projects include electronics products, software package and environmental products.

"The funding limit has been increased recently from 50 to 75 per cent of the fundable cost items of an approved project in order to make the Scheme more attractive. The main fundable cost items are R & D manpower, equipment, consumables, and marketing expenses.”

Also speaking at the ceremony was the Chairman of ARC, Dr Cheng Hon-kwan.

Commenting on the project, Dr Cheng said: "The Board of Directors of the ARC are of the view that the project will bring much benefits to the electronics manufacturers, particularly in the area of quality control.”

Dr Cheng said a new scheme. Co-operative Applied R & D Scheme (CARDS), was launched in June to encourage local manufacturers to undertake more applied R & D work by leveraging on the vast pool of technological expertise available in the tertiary institutions and research bodies of Hong Kong and China.

’’Since the launching of CARDS, the Secretariat of the Council has received three applications as well as numerous enquiries and requests for application forms,” he said.

Dr Cheng urged those companies with innovative ideas for applied R & D to grasp the opportunity and submit their applications as soon as possible.

End/Tuesday, July 18, 1995

15

Hong Kong to mark 50th anniversary of liberation *****

Hong Kong is to mark the 50th anniversary of its liberation at the end of World War II, which falls at the end of August, with a full 12-day programme of events.

Some 500 ex-Servicemen and civilian internees who either fought in the Battle of Hong Kong, were imprisoned here, or were part of the Royal Navy Task Force which liberated the Territory on August 30, 1945 will participate. The programme will also include a number of parades and events being staged to mark the disbandment of the Royal Hong Kong Regiment (The Volunteers) after 141 years of existence.

The programme is being co-ordinated by the Hong Kong Garrison at the request of the Governor. Hong Kong-based units of the Royal Navy, the British Army, and the Royal Air Force will play a full part in the programme.

Attention News Editors:

Full details of the programme will be made available at a press conference to be held in the G1S Conference Room at 11 am on Thursday (July 20).

The Conference will be given by Mr Raymond Wong, Security Branch, representing the Hong Kong Government, and by Colonel Howard Bentley-Marchant, Deputy Chief of Staff at HQ British Forces.

Mr Arthur Gomez, representing the Veterans and who has been fully involved in the planning of the commemorative programme, will also be present to answer questions, as will representatives of the planning staff and the Royal Hong Kong Regiment (The Volunteers).

End/Tuesday, July 18, 1995

16

Final notice on tax return *****

The Inland Revenue Department has issued final notices on Tax Return -Individuals on July 7. For taxpayers who do not complete and submit the tax returns within the final time limit, the Inland Revenue Department will issue the estimated assessments and in addition take legal action at the appropriate time.

Taxpayers who have submitted the tax returns recently can disregard the final notices.

Any person who is chargeable to tax but who has not received the Tax Return should contact the Department using the hotline 187 8022 or approach the Department's Enquiry Centre on the first floor of Revenue l ower at 5 Gloucester Road. Wan Chai.

End/Tuesday. July 18. 1995

Closure of Sham Shui Po illegal structures sought

*****

The Building Authority is seeking to close two unauthorised structures in Sham Shui Po so that they can be demolished without endangering the occupants and the public. The unauthorised structures used for dwelling are located on the canopy at the roof of a building at 117-121A Cheung Sha Wan Road.

Notices of applying for Closure Orders from the District Court under the Buildings Ordinance on November 7 were posted on the premises today (Tuesday).

Demolition works are expected to start as soon as the Closure Orders arc

issued.

End/Tuesday. July 18. 1995

17

Hong Kong Monetary Authority tender results * ♦ ♦ ♦ ♦

Tender date 18 Jul 1995 18 Jul 1995

Paper on offer EF bills EF bills

Issue number Q529 H569

Amount applied HK$6,120MN HK$3,740 MN

Amount allotted HK$ 1,500 MN HKS800 MN

Average yield accepted 5.45 PCT 5.51 PCT

Highest yield accepted 5.46 PCT 5.52 PCT

Pro rata ratio About 30 PCT About 87 PCT

Average tender yield 5.48 PCT 5.54 PCT

Hong Kong Monetary Authority

/> Tenders to be held in the week beginning 24 Jul, 1995

Tender date 24 Jul 1995 25 Jul 1995

Paper on offer EF notes EF Bills

Issue number 3807 Q530

Issue date 25 Jul 1995 26 Jul 1995

Maturity date 27 Jul 1998 25 Oct 1995

Tenor 3 Years 91 Days

Amount on offer HKS500MN+100 MN HK$ 1,500+300 MN

Coupon 6.16 PCT

End/Tuesday, July 18, 1995

18

Hong Kong Monetary Authority money market operations ♦ ♦ ♦ ♦ ♦

tmillioQ Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,813 0930 +490

Closing balance in the account 2,104 1000 +490

Change attributable to : 1100 +486

Money market activity +496 1200 +496

LAF today -205 1500 +496

1600 +496

LAF rate 4.25% bid/6.25% offer TWI 119.3 *+0.1* 18.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.35 2 years 2705 6.40 101.00 5.89

1 month 5.41 3 years 3804 6.90 101.95 6.21

3 months 5.47 5 years 5006 6.60 99.25 6.90

6 months 12 months 5.52 5.57 5 years M501 7.90 102.75 7.34

Total turnover of EF bills and notes - $14,570 million

Closed July 18, 1995

End/Tuesday, July 18, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

Wednesday, July 19,1995

Contents Page No,

Transcript of the Governor’s media session............................... 1

Govt position on provisional legislature clear & consistent.............. 4

Inspection of emergency vehicular access in public housing............... 5

Enforcement policy of priorities is reasonable and fair.................. 9

Where HK’s interests lie in future WTO negotiations..................... 10

Insider Dealing Tribunal to conduct hearing............................. 14

Sewage disposal scheme comes to fruition................................ 14

50th anniversary of liberation of HK.................................... 17

Buildings Department prosecutes for canopy collapse................. 18

64 pollution cases in June.......................................... 18

General Duties Provisions effective..................................... 19

Three Kowloon lots to let............................................... 20

Hong Kong Monetary Authority money market operations.................... 21

1

Transcript of the Governor’s media session ♦ ♦ ♦ ♦ ♦

The following is a transcript of a question and answer session with the media by the Governor, the Rt Hon Christopher Patten, on his arrival at the airport from Britain today (Wednesday):

Governor: I’ve had a short but very useful visit to London. I had meetings there as you know with the Prime Minister, the Deputy Prime Minister, the new Foreign Minister, the new Minister of State in the Foreign Office who is going to take responsibility for Hong Kong and related matters. I also saw the Labour Party’s chief foreign affairs spokesman Robin Cook, the Liberal Democrat’s spokesman Sir David Steel and a number of senior Foreign Office officials. So we had quite a busy programme for a couple of days. During those discussions, we obviously reviewed the progress that has been made in the last few months in resolving some of the outstanding issues of the transition. I think there is some satisfaction at the progress that we achieved recently. There are obviously everybody is keen to see that progress solidified by the passage of the Court of Final Appeal Bill by the Legislative Council before the end of this legislative session. There is a great deal of interest in the United Kingdom about the outcome of that legislation which is so important for Hong Kong and its future. We also considered looking forward, preparations and arrangements for Vice-Premier Qian Qichen’s visit to London. We very much hope that will mark a further step forward in our relations and in the resolution of the problems that remained to be sorted out before 1997. Nobody wants to place too much weight or emphasis on one visit or one meeting. But we do all hope that the meeting will mark further substantial progress and I hope that view is shared by Chinese officials too. It’s nice to be back.

Question: Mr Governor, have you decided to delay the Policy Speech for a week because of the meeting between the PM and Qian?

Governor: We are talking to the Legislative Council about that. Obviously we are keen to take account of their views on the issue. I think there is a general feeling that it might not make too much sense for me to be speaking at the same time as Qian Qichen is talking to ministers in London because things may come out of those discussions which would have a relevance to my Policy Address and I know that people in Hong Kong would want to know the conclusions from that visit, from those discussions. So, there is obviously some sense in delaying the policy address by a week. We’re discussing that with Mrs Tu and others at the moment.

Question: Is it a way to consult Mr Qian on your coming Policy Address?

2

Governor: It's not in any way novel. Before both my last Policy Addresses the Foreign Secretary has met Mr Qian Qichen in the margins of the UN General Assembly in New York and told him about the main themes of my Policy Address. I think that's what people would expect to happen. But the main issue this time is whether things emerge in the talks that we'd actually want to reflect in the Policy Address. It's perfectly obvious if we were to make the sort of breakthrough you would like in one or two areas, it would be wrong to draft a Policy Address without taking account of that.

Question: Then would the meeting lead to some slight changes to your Policy Address? Will the meeting between Mr Rifkind and Mr Qian ...?

Governor: If it led to marked progress on issues rather than just general expressions of enthusiasm for progress then I would want like account of that in the Policy Address obviously. Clearly, we would like nothing better than to make real progress on some issues rather than just draft a communique which says the JLG should work harder.

Question: But that's your personal Policy Address for ruling Hong Kong. That means you are really undermined in such a way ... when consulting the Chinese Vice-Premier.

Governor: Are you seriously supposing that if we made progress on say the container terminal or air service agreements or the adaptation of laws in the meetings with Qian Qichen, that shouldn’t be reflected in my Policy Address? Ask reasonable questions.

Question: Are there any movement on the war widows question?

Governor: No, there isn't any movement on that. The British Government knows our continuing views on that issue and we'll continue to express them. It is of course the case that the majority of the war widows have now had passports endorsed in a way which makes it clear that they can enter the United Kingdom whenever they want and all those who want it have had a personal letter from the Home Secretary.

Question: After several ... without ... consulting the Chinese ... what makes the different this time?

Governor: No, what makes the difference this time is that Mr Qian Qichen is going to be in London for several days of substantive talks and I think that people would genuinely find it rather curious and confusing if I was to make a Policy Address the same day that Mr Qian Qichen was meeting ministers, setting out my views for the future year without taking account of what Mr Qian Qichen and ministers said, discussed, agreed on.

3

Question: How close do you think we are to agreement on Container Terminal 9?

*/ ,

Governor: As far as the Hong Kong Government is concerned, we've on the table for some years now perfectly sensible proposals. I very much hope that we can see progress right across the board in the development of our port and our container i•_ capacity. Our objectives in discussing the matter with Chinese officials remain what

they've always been. First of all we want to see the port developed as rapidly and effectively as possible. Secondly we want to see that done in a way which maximises » competition and the provision of facilities in the port. Thirdly we want to see that that is done so that we retain the integrity of our public procurement process and fourthly we have to take account of the impact on the environment, particularly obviously the development of container terminals 10 and 11.

Question: How can you react to Ambassador Zhao's remarks saying this ... is premature...?

Governor: Too premature? It can't be too premature after all these years of discussions. "‘Jl

Question: Will more details be supplied to the Chinese?

Governor: Well I haven't seen Ambassador Zhao's remarks. But I certainly don't think anybody could regard our proposals as premature. I think people who are actually using the port regard its development as being anything but premature.

Question: Does the Prime Minister or Deputy PM have any plans to come to Hong Kong?

Governor: They don't have plans to come to Hong Kong at the moment though they would both be very welcome were they to wish to do so. Mr Heseltine was in Hong Kong about a year ago. He spent a weekend with me. He walked in Hong Kong, he looked at birds in Hong Kong. He looked at things like the development of the airport in Hong Kong. But I hope when he comes another time, we will be able to do a good i deal more than that to see some of our trading and commercial successes. Both Mr ’’ Henley, the new Minister of State and Mr Rifkind obviously hope that they will be able to visit Hong Kong in the reasonably near future.

Question: How can you justify the celebrations for the 50 anniversary of Liberation Day?

4

Governor: Well, if I was a widow of somebody who’d given their life for Hong Kong’s freedom or if I was one of those who had suffered in order to make Hong Kong the free and successful community it is today, I'd think that spending seven hundred and forty thousand dollars in order to commemorate that is rather a small price to pay. I think that what happened in 1945 laid the foundations for one of the greatest economic miracles for one of the great success stories in the history of the second part of this century. I think not to spend a modest amount of money in marking that would show that we were a very short-sighted mean-minded community which we are not. So I'll certainly be returning from my holiday, provided I can get one, to take part in those commemorations which will be appropriate and solemn to the occasion that they mark and I think that looking back on what's been achieved, thanks to the sacrifice of others, should give us some inspiration about what we can manage to do in the future.

Question: When do you expect to go on holiday?

Governor: When the Legislative Council goes on its. Last question.

Question: CT9 again...

Governor: I haven't got anything to add to what I've said earlier.

End/Wednesday, July 19, 1995

Govt position on provisional legislature clear & consistent *****

A Government spokesman today (Wednesday) reaffirmed that there had been no agreement of any kind between the British/Hong Kong Government and the Chinese Government relating to the establishment of a provisional legislature in Hong Kong.

Replying to questions raised by Legislative Council Member Mr Martin Lee, the spokesman said the Hong Kong Government had made its position on this clear many times and that its stance on the question of a provisional legislature was consistent. "It is in Hong Kong's interests that the Legislative Council to be elected in September 1995 should be able to serve its full term to 1999," he said.

"In that way, we will have an experienced legislature in place on July 1, 1997 which commands the confidence of the community."

5

The spokesman believed that this was the best way to avoid confusion or disruption in the legislative affairs and that there was no reason why that should not happen.

The electoral arrangements for 1995 meet the community's wish for credible representative institutions which are capable of achieving continuity after 1997, he added.

"We will certainly not do anything to undermine the credibility of the normal operation of the Legislative Council to be elected in September.

"Civil servants and the Administration as a whole will continue to be accountable solely to that Legislative Council."

On the question of having two legislature operating in parallel, the spokesman agreed that this would cause confusion.

"But much more important than that, it would raise serious questions in Hong Kong and internationally about whether there was likely to be a smooth transition and whether the way of life enshrined in the Joint Declaration would continue to be secure," he warned.

"China could make other arrangements in 1997 if they so wish. But if the Chinese were to take this course of action, it would be for them to explain to the people of Hong Kong why that was necessary, what precisely the new arrangements were, how they were compatible with the Joint Declaration and the Basic Law, and how they were conducive to a smooth transition and the maintenance of Hong Kong's stability and prosperity," he added.

End/Wednesday, July 19, 1995

Inspection of emergency vehicular access in public housing ♦ * * * *

The Fire Services Department (FSD) today (Wednesday) published the findings on the inspection of Emergency Vehicular Access (EVA) provided in 242 rental estates and Home Ownership Courts of the Housing Authority.

"We found various forms of obstruction in 33 estates, the majority of which involved movable obstacles, such as illegal parking, building materials and temporary waste collection point," a spokesman for the department said. A breakdown of the nature of the obstruction and the estates involved is attached.

6

•ti:.' v

'I'

: removal of roadside railing

: removal of planters

: removal of planters

: removal of planters

• • ' ‘ . .. ) . .

"The obstructions in 29 estates have already been removed with the cooperation of the Housing Department,” the spokesman said.

Work is continuing to clear the obstruction from the following four estates within the next few days:

Kwai Chung Estate

Sha Kok Estate

Pok Hong Estate

Wo Che Estate

In the interim, FSD will strengthen the attendance of fire appliances in the event of fire to these estates.

• K

• • » •

Separately, the Housing Department has carried out inspection of fire services installations in all housing estates. Where damages were found, works orders were issued to contractors for immediate action. The most common defects are missing nozzles and handwheels.

Fire Services and Housing Departments will continue to look into ways and means to make further improvements to fire access where appropriate.

They will also consider ways of strengthening fire precaution measures in public housing estates, such as clearer signages on Emergency Vehicular Access, operating instructions on the use of hosereel and publicity on the safekeeping and maintenance of fire fighting equipment.

The two departments will submit a report to the Secretary for Housing on the recent (July 11) fire in Yue Wan Estate.

This report will also take into account the findings of the inspections carried out by FSD, and will make recommendations in relation to fire safety in public housing estates throughout the territory. ' ■ .


7

L»t of Public Rousing Estate found with obstruction in Emergency Vehicular Access

(a) Hong Kong.

Name of^tat^ Obstruction

Location Type

Model Estate o/sBkB, Cl.D&F 2&4

Hing Man Estate Man Fu Hse Man Chak Hse Man Yat Hse 4

Sai Wan Estate South Terrace West Terrace North Terrace 2

Wah Kwai Estate • Wah Kwai Market, Wah Yiu Hse Wah Hau Hse Wah Lai Hse 4

Wong Chuk Hang Estate Between Bk 2 & 4 o/sBk3,4 &8 1, 3&4

Wah Fu Estate Wah Chun Hse Wah Hong Hse WahYuHse Wah Ching Hse 4

(b) Kowloon

Name ofE^tat? Qi>;tructiofl

Location Type

Cheung Sha Wan Estate Between Bk 1 & 4 2

Lai On Estate o/s Lai Tak Hse 3

Yee Ching Court o/sBk 7 3

Lei Cheng Uk Estate o/s Lei Cheng Uk Govt.Primary School 3

Valley Road Estate o/s Bk 12 & 14 4

Chun Man Court o/s Bk A 4

Hung Hum Estate o/s Bk 3 & 4 4

Yau Tong Estate Block 15 & 16 4

Shun Tin Estate o/s Tin Wan & Tin Chu House 1&4

Tung Tau Estate o/s Fu Tung House, Hing Tau House, Cheung Tau House 4&5

Tze Oi Estate Block 37 & Block 39 3&4

Legend:

Type of obstruction

1. Illegal Car parking

2. Allocated Car parking

3. Planter

4. Metal Barriers or Concrete Poles

5. Building materials

6. Temporary waste collecting point

8

(c).N<?w Territories

Name of Estates Obstruction

Location Tvpe .....

Tai Yuen Estate TaiYeeHse Tai LokHse Tai Man Hse 3&4

Wan Tau Tong Estate Wan Lam Hse Wan Lok Hse 3 a? ■ ■ a: • •

Yat Nga Court Yat Wing Hse Yat Yan Hse 4

Lai King Estate O/s Modular Markets near On King Hse and Ming King Hse Opp. Lok King Hse 4 .• •* r • • - • •

Kwai Chung Estate Bk 11,13,14 & 16 Bk21&22 1 4 t

Shek Lei Estate Shek Yat House, Bk 9 & 10 1

Lei Muk Shue Estate Bk 1,2,3,5,13 & 14 Chuk Shue House 1 5

San Fat Estate Entrance of Estate 1

Wo Che Estate Entrance of Estate Hong Wo Hse Shun Wo Hse Yan Wo Hse Tai Wo Hse Man Wo Hse 3&4

Chun Shek Estate Shek Yuk Hse 6 . . , J.

Sun Chui Estate Entrance of Estate. 4

Sun Tin Wai Estate Wing Wai Hse 6

Lung Hang Estate Entrance of Estate 4

Mei Lam Estate Mei Wai Hse 3

Sha Kok Estate Osprey Hse Herring Gull Hse Skylark Hse Bean Goose Hse Oriole Hse 3&4 . . •. W. I Umd Type of obstruction :• 1. Illegal Car parking 2. Allocated Car parking 3. Planter 4. Metal Barriers or Concrete Poles 5. Building materials 6. Temporary waste collecting point

Pok Hong Estate Pok Man Hse Pok Tak Hse Pok Tai Hse Pok Yat Hse Pok Wah Hse Pok Yue Hse Pok Chi Hse 3&4

End/Wednesday, July 19, 1995

9

Enforcement policy of priorities is reasonable and fair ♦ ♦ ♦ ♦ ♦

The Government has already reviewed the Buildings Department's enforcement policy of priorities based on degree of danger and is satisfied that the department has been able to achieve the objectives of protecting public safety on the one hand and containing the problem of unauthorised building works on the other, the Director of Buildings, Mrs Helen Yu, said today (Wednesday).

She was responding to the Commissioner for Administrative Complaints (COMAC), Mr Andrew So's latest comments on his direct investigation report on the unauthorised building works.

She said the Government had reaffirmed the policy as reasonable and realistic, thus fair and appropriate in the prevailing circumstances and with the available resources.

On illegal rooftop structures, she said, the Government's long-term objective was to clear all illegal rooftop structures by encouraging occupants to apply for public housing and to demolish their illegal structures. "However, Government's prime concern is public safety and danger may arise from any type of unauthorised building works. Illegal rooftop structures should not be singled out," she said.

Meanwhile, the Government continues to tackle the problem by an overall three-prong approach, namely, containment by enforcement on priorities; deterrence by legal and disciplinary action; and promotion of awareness and attitude change by public education and public information efforts.

"The policy of priorities is only one element in Government's general strategy for tackling unauthorised building works. Government action against unauthorised building works cannot, and should not, be assessed by the enforcement policy alone," she said.

Regarding advertising signs, Mrs Yu said the primary concern of the Government on advertising signs was again safety. Action to date on dangerous or potentially dangerous signs has been effective.

"Government has examined carefully the feasibility and desirability of introducing a licensing system for regulating overhanging signboards and concluded that it would be resource-intensive and extremely costly. The existing measures to control overhanging signboards are generally adequate and additional regulatory measures would not be necessary."

10

Mrs Yu added that in the course of the Government's review, the Buildings Department had also concluded that further practical measures could be introduced to contain the problem of rooftop structures by stopping the problem at source. Steps are being taken to:

include a leaflet with the rates demand note to explain that payment of rates does not confer or imply legal status of a property;

* confer with those responsible for public utilities, including water supply, not to connect services to new illegal rooftop structures and to refer such cases to the Buildings Department for follow-up; and

... .>1'1

* explore with the Law Society the possibility of including specific reference to illegal rooftop structures in its practice directions for lawyers.

"Given the achievement to date and the further efforts under the three-prong strategy, Government has considered the policy of priorities to be fair, realistic and effective and therefore reaffirmed it as reasonable and appropriate," she added.

. '• • ,4

■u;. >

End/Wednesday, July 19, 1995 .,;,

Where HK’s interests lie in future WTO negotiations

* i" *

<un

The Director-General of Trade, Mr Tony Miller, said today (Wednesday) Hong Kong's first interest in the future World Trade Organisation (WTO) negotiations lay in ensuring the complete and faithful implementation of the Uruguay Round package. "We want to see tariffs come down; we want to make sure that restraints on trade in textiles and clothing are phased out," he said.

"We want to see all the other 'grey area' measures eliminated; we want to see all commitments by all parties followed through and preferably accelerated," he added.

. . «•« •■■■ f

Mr Miller was taking a look ahead at the future WTO agenda and where Hong Kong's interests lay in his talk entitled "Whither the World Trade Organisation?" at a luncheon meeting of the Rotary Club of Hong Kong Island East.

v . .. -j.

He said Hong Kong's interests lay next in ensuring that the \VTO was established as a strong and respected referee of international trade.

11

"This means first of all completing the structure. We want to see all of the WTO institutions up and running, including appointment of the Appellate Body,” he said.

"A strong and effective dispute settlement body is particularly important for us. The predominance of re-exports in our trade leaves us peculiarly vulnerable to disputes between our major partners.”

He explained that under the rules of the game, a place through which goods were re-exported had no "locus”, no formal role to play in any dispute between the country of production and the country of final consumption.

"If as happened last year, the European Union slaps quota on certain Chinese products, we have no say in the matter. Hong Kong thus has a special interest in ensuring that disputes of this nature can be handled in a fair and open manner," he said. •

"Equally obvious, we have a special interest in China becoming a member of the WTO."

Mr Miller said Hong Kong's interests also lay in seeing a successful conclusion to the unfinished business of the Uruguay Round in the services sector - financial services, maritime services and basic tele-communications. He pointed out that financial services were particularly important as Hong Kong ranked fourth in the world as a banking centre and eighth in market capitalisation.

"Negotiations on financial services have reached a critical point. A deal is very close, but to the amazement and frustration of all the United States is saying that it will not join the final agreement," he said.

"We are determined that this should not be allowed to discourage others from going ahead and have been working actively with the European Union, the ASEAN countries, Australia. New Zealand, Canada, Chile and many others who are of the same mind. "We sincerely hope that Japan will also come on board so that the US is • left with the stark choice of signing on or being in the ignominious position of 'freerider' in a field where it leads the world."

As to the future. Mr Miller said Hong Kong believed that, among other things, competition policy and anti-dumping policy must be discussed together as two sides of the same coin.

12

He pointed out that in a rapidly globalising economy, anti-dumping was already something of an anachronism, but its potential as an instrument of trade harassment and protection remained enormous.

"The European Union has recognised' this internally, and now relies on competition policy to police anti-competitive behaviour among member states. Australia and New Zealand have done the same in their own arrangement. In NAFTA (North America Free Trade Agreement) the question has yet to be resolved," he noted.

"We are convinced that EU and Australia and New Zealand have made the right decision and that the rest of the world should ultimately follow suit."

On investment, Mr Miller said as local companies continued to invest abroad, Hong Kong had an increasing interest in securing a similar degree of freedom and openness in investment regimes elsewhere as here.

*

’’This will be good for trade because trade follows investment. Hence our support for the Asia-Pacific Economic Co-operation’s (APEC) investment code concluded at Bogor last year,” he added.

As regards other areas such as the environment and labour standards, Mr Miller said Hong Kong’s interests lay in preventing attempts to ’’improve” the system in any way which would sanction the use of trade restraints to persuade other countries to accept policies and standards in areas not related to trade.

I

’’This is not because we do not regard improvements in these areas as important. On the contrary, we do and our own records bear testimony to this. However, we do not believe that trade sanctions should be used to persuade people to accept such standards when quite clearly economic progress is a pre-condition for improvement,” he said.

’’Many of the advocates of such a linkage are purely protectionists. They argue that economic progress in the East and South can only be achieved at the expense of prosperity and employment in the West and North.

’’This is economic nonsense. It must be recognised as such and we were therefore very pleased to see the G-7 pointing unequivocally in the Halifax communique at domestic policies and labour market rigidities as the real cause of systemic unemployment.

’’Nevertheless you should expect to hear Hong Kong continuing to argue this point with both passion and persistence.”

13

In deciding where her best interests lay in future negotiations, Mr Miller examined the changes that Hong Kong had experienced whilst prospering mightily over the years.

He said: ’’First, Hong Kong has regained its entrepot role. As China has reopened to trade and investment, so the composition and the pattern of our trade have changed. Incredibly for a place so small, I long Kong is now the eighth largest trading economy in the world.

”A second change resulting from China's reopening to trade and investment is that Hong Kong is now predominantly a service rather than a manufacturing economy. Services account for over 80 per cent of our GDP. In the world league of service exporters, we now rank 11th overall.

’’Thirdly, Hong Kong has become a significant investor overseas. Cash-rich Hong Kong-based companies have invested all around the world. Just to quote a few examples, Hong Kong accounts for 70 per cent of realised foreign direct investment in China, we are, with Taiwan, the first or second biggest investor in Vietnam and second only to Japan in Indonesia."

However, Mr Miller pointed out that one thing which had not changed was the autonomy Hong Kong enjoyed in the conduct of its external commercial relations.

"I mention this because our close economic relationship with China taken with the imminent change of sovereignty lead some to assume that post-1997 Hong Kong would simply be taken over by China," he said.

"The Joint Declaration and the Basic Law make it clear that under the one-country-two-systems concept, Hong Kong is to remain a separate customs territory responsible for the conduct of its own external commercial relations. We will remain a separate member of the WTO, even when China joins.

"So in preparing ourselves for future negotiations in the WTO, we must look well beyond the transition."

End/Wednesday, July 19, 1995

14

Insider Dealing Tribunal to conduct hearing

*****

The Insider Dealing Tribunal which has been appointed to inquire into possible insider dealings in the listed securities of Public International Investments Limited (PIIL) will conduct a further hearing at 10 am tomorrow (Thursday), a Government spokesman announced today (Wednesday).

The Tribunal has decided that insider dealing in the shares of PIIL did take place in December 1992. The Tribunal has also identified three individuals as insider dealers in respect of the transactions in question. Under the Securities (Insider Dealing) Ordinance, the Tribunal has power to impose financial penalties and to disqualify insider dealers from directorships of companies.

Tomorrow’s hearing will enable those individuals identified as insider dealers to make representations as to penalty.

The hearing will be open to the public and will take place at Courtroom 26 in the Supreme Court Building.

End/Wednesday, July 19, 1995

Sewage disposal scheme comes to fruition *****

The Stanley Sewerage and Sewage Disposal Scheme which serves a population of 27,000 in Stanley and nearby Tai Tam, Chung Hom Kok and Red Hill areas came to fruition today (Wednesday).

The scheme comprises an underground sewage treatment plant, 10 sewage pumping stations and 10 kilometres of new sewers.

Officiating at the opening ceremony this morning of the Stanley Underground Sewage Treatment Plant which forms a major part of the scheme, the Secretary for Works, Mr James Blake, said the Government had done a lot to achieve the goal of keeping Hong Kong waters clean.

He pointed out that the entire territory of Hong Kong had been divided into 16 Sewerage Master Plan (SMP) areas for sewerage planning. "Within each area, the water qualities are examined and suitable sewerage facilities are proposed.

15

"Design and construction of these facilities in various SMP areas are being progressively implemented," he explained.

The Stanley Sewerage and Sewage Disposal Scheme is one of the early SMP packages.

"Its completion concludes eight years of careful planning, design, co-ordination and construction among consultants, contractors and Government departments," Mr Blake said.

Also speaking at the opening ceremony, the Chairman of the Advisory Council on the Environment, Professor Wang Gungwu, said the successful completion of the project marked an important milestone in the implementation of SMP in Hong Kong.

He noted that although the water quality at most beaches in the southern part of the Hong Kong Island remained good or fair according to the bacteriological water quality studies conducted by the Environmental Protection Department, the Government had decided to take a leading role to protect those beaches before they were threatened by pollutants brought about by development pressure, growing tourism and commercial activities.

"This is done by putting in place comprehensive sewage collection, treatment and disposal facilities.

"Besides, developments in the Stanley and nearby areas will no longer need to operate their small, inefficient sewage package plants.

"Instead, the developments will be sewered, with all sewage collected and treated here -- at the Stanley Sewage Treatment Works before being disposed of by a 2.5-kilometre-long submarine pipeline into the deep sea," Professor Wang said. He said he was especially impressed by the Stanley Underground Sewage Treatment Plant because it was built inside a cavern.

"This is the first of its kind in this part of Asia.

"This innovative design clearly shows the comprehensive approach towards environmental protection undertaken by the Government.

"By locating the sewage treatment plant inside the cavern, people can hardly see it, hear it or even smell it," Professor Wang said.

16

The Director of Drainage Services, Mr Ng Yee-yum, said providing cost-effective drainage facilities to combat pollution had always been his department's main objective.

He said his department's sewerage services offered to the public had expanded rapidly since its establishment in September 1989.

"The volume of sewage treated by us has increased by 50 per cent from 360 million cubic metres in 1990-91 to 540 million cubic metres in 1994-95.

"We have at present over 1,100 kilometres of sewer and 66 sewage treatment plants to help us keep the Hong Kong waters clean.

"This new sewerage system in Stanley adds further strength to our combat against pollution," Mr Ng said.

The Stanley Underground Sewage Treatment Plant will collect and treat about 11,600 cubic metres of sewage from Stanley and nearby areas every day before disposal.

The sewage will undergo secondary treatment using aeration process.

After disinfection, effluent from the underground plant is disposed of into ocean currents southeast of the Stanley Peninsula via a submarine outfall pipeline of 0.6 metre in diameter and 2.5 kilometres in length.

. The underground sewage treatment plant not only visually unintrusive, but also has had little environmental impact on neighbouring residents during its construction and operation.

The service area of the treatment plant is of the same size as the main concourse of the Mass Transit Railway Central Station.

The construction works for the scheme commenced in late 1990 and were completed early this year at a total cost of $410 million.

End/Wednesday, July 19, 1995

17

50th anniversary of liberation of HK *****

In response to press enquiries on two newspaper articles today (Wednesday) relating to the 50th Anniversary of Liberation of Hong Kong, a Government spokesman gave the following statement:

"The 50th anniversary of the end of World War II is a major event of special significance to people all over the world, including those here in Hong Kong who suffered and survived the terrible experience of occupation, and the veterans who fought and died for Hong Kong.

"To commemorate this special date, programmes of commemoration and thanksgiving have been held in many countries, including United Kingdom, United States and Australia.

"It is entirely appropriate that Hong Kong should express its gratitude to all those whose sufferings in many ways laid the foundations of the success story of Hong Kong.

"Contrary to some media reports, the programme to be held in Hong Kong includes a number of separate events, spaced out over a 12-day period, in locations and at times which will cause little or no inconvenience to the public. "The budget allocated is far from excessive ($740,000), and the participation of units of the British Garrison, while voluntary and enthusiastic, is at no extra cost.

"We believe that the programme is suitable and appropriate without being grandiose. We believe that the people of Hong Kong will see it as proper expression of respect and gratitude for the events of 1945."

End/Wednesday, July 19. 1995

18

Buildings Department prosecutes for canopy collapse ♦ * * ♦ ♦

The Buildings Department has issued summonses to New Best Restaurant Ltd, the restaurant operator, the proprietor of the demolition company and two demolition workmen in connection with the collapse of a building canopy in Aberdeen in August last year.

"We have completed our investigations and found that certain persons have to answer for not abiding by the Buildings Ordinance,” Assistant Director of Buildings Mr Cheng Wei-dart said. The charges were for contravention of Buildings Ordinance section 14(1) which stipulates that no person shall carry out any building works without the approval of the Building Authority.

Any person convicted of such an offence is liable to a fine of $100,000 and imprisonment for two years.

Those charged are to appear in Eastern Magistracy on August 15.

End/Wednesday, July 19, 1995

64 pollution cases in June *****

A total of 64 convictions were made in the courts last month for breaching antipollution legislation enforced by the Environmental Protection Department.

Among them, 28 were convictions made under the Water Pollution Control Ordinance (WPCO), 16 under the Noise Control Ordinance (NCO), 16 under the Air Pollution Control Ordinance (APCO), two under the Dumping At Sea Act 1974 (Overseas Territories) Order 1975 (DASO), one under the Ozone Layer Protection Ordinance (OLPO), and one under the Waste Disposal Ordinance (WDO).

The fines ranged from $500 to $100,000.

In three separate cases, the defendants were fined $100,000 for each conviction.

Sino Estates Services Ltd was fined $100,000 for discharging polluting matter in North Western Water Control Zone.

Yumi Yumi Caterers Ltd, operator of two Cafe De Coral fast food shops in Tai Po, was also fined $100,000 on two separate occasions for discharging polluting matter in Tolo Harbour and Channel Water Control Zone.

End/Wednesday, July 19, 1995

19

General Duties Provisions effective *****

The General Duties Provisions of the Factories and Industrial Undertakings Ordinance (FIUO) has once again proved to be an ’’effective weapon" in prosecuting construction site contractors and other industrial establishment employers for failing to take reasonably practicable measures to ensure the safety and health at work of all persons employed by them.

The Chief Factory Inspector of the Labour Department, Mr Chan lat-king, made this comment following a recent court case in which a main contractor, a subcontractor and its company director were fined in the Western Magistracy a total of $95,000 for breaching the General Duties Provisions.

An industrial accident occurred in the evening of April 18, 1994 at the Tung Chung section of the North Lantau Expressway under construction.

A dump lorry fell into a stream and overturned after travelling across a road junction. The driver was later certified dead at Mui Wo Hospital.

Investigations revealed that defects in the vehicle’s braking system had been identified prior to the accident by two mechanics of the sub-contractor of the road work project, the Grand Base Construction Company Limited. The company's director, Li Chi-chung, being the one having the management control and responsibility for the day-to-day dump truck operation, had ignored the advice from his mechanics to have the braking defects repaired.

The main contractor of the project, China Overseas Land and Investment Limited, together with the sub-contractor and Li Chi-chung were subsequently charged by the Factory Inspectorate Division for breaching the General Duties Provisions.

The Chief Factory Inspector reminded all site contractors the need to draw up and implement a proper maintenance system for vehicles and other plants to ensure the safety of workers employed by them.

20

Mr Chan disclosed that since the enactment of the General Duties Provisions of the FIUO in December 1990, the Labour Department had taken out a total of 96 summonses against factory, catering establishment and construction site operators for breaching this particular piece of industrial safety legislation.

"Under this legislation, employers and employees should work together to ensure all workplaces are safe and healthy. An employer who contravenes this provision will be liable to a fine of $200,000 and to imprisonment for six months and the maximum fine for an offending employee is $50,000 and six months in jail." he added.

End/Wednesday. July 19. 1995

Three Kowloon lots to let *****

The Lands Department is inviting tenders for the short-term tenancies of three pieces of Government land in Kowloon.

The first lot. located off Po Kong Village Road, has an area of 200 square metres, for storage of non-dangerous goods.

The tenancy is for three years, renewable quarterly.

Covering an area of 1,810 square metre, the second lot located in Tai Hom Road, Sheung Yuen Leng, is to be used as a fee-paying car park.

The tenancy is also for three years, renewable quarterly.

With an area of 4.220 square metres, the third lot situated at Choi Shek Lane is designated for storing of goods, excluding containers and vehicles.

The tenancy is for two years, renewable quarterly.

Closing date for submission of tenders for the three lots are at noon on August 4.

Tender forms, tender notice and conditions may be obtained from the District Lands Offices, Kowloon East. 10th floor, Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon and the Lands Department, 14th floor, Murray Building, Garden Road. Tender plans can also be inspected at the offices.

End/Wednesday, July 19, 1995

21

Hong Kong Monetary Authority money market operations ♦ ♦ ♦ ♦ ♦

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,104 0930 +196

Closing balance in the account 1,901 1000 +196

Change attributable to : 1100 +196

Money market activity +197 1200 +197

LAF today -400 1500 +197

1600 +197

LAF rate 4.25% bid/6.25% offer TWI119.0 *-0.3* 19.7.95

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.38 2 years 2705 6.40 100.97 5.91

1 month 5.42 3 years 3804 6.90 101.86 6.25

3 months 5.47 5 years 5006 6.60 98.89 6.99

6 months 12 months 5.53 5.58 5 years • M501 7.90 102.29 7.46

Total turnover of EF bills and notes - $12,299 million

Closed July 19, 1995

End/Wednesday, July 19, 1995

DAILY INFORMATION BULLETIN

ISSUED BY GOVERNMENT INFORMATION SERVICES BEACONSFIELD HOUSE, HONG KONG. TEL: 2842 8777

SUPPLEMENT

Wednesday, July 19,1995

Contents Page No.

Legislative Council meeting:

Formulation of comprehensive broadcasting law..................... 1

New broadcasting legislation in the pipeline...................... 5

Accommodation problem of single elderly persons................... 8

Airport Authority Bill............................................. 1 1

Government welcomes passage of the Airport Authority Bill........ 19

Administration of Justice Bill 1995 ............................. 20

Public Order (Amendment) Bill 1994.........................a.... 25

Bills to protect freedom and public morality passed.............. 29

Control of Obscene and Indecent Articles (Amendment) Bill 1995 .. 32

Control of Obscene Article Bill: committee stage................. 36

/Film Censorship..

I «k

Contents Page No.

Film Censorship (Amendment) Bill 1995: second reading............... 38

■ k.«.-Film Censorship (Amendment) Bill 1995: committee stage ............. 39

Public Entertainment and Amusement Bill.............................. 41 ., .< •

Television regulations amendment..../..............................  42

Amended TV regulations to ensure press freedom passed................ 43 , /

Criminal Procedure (Amendment) Bill 1995 and Evidence (Amendment)

Bill 1995 .......................................................... 45

Criminal Procedure (Amendment) Bill 1995: committee stage........... 48

Magistrates (Administrative) (Amendment) Rules 1995 ................ 50

Post Office Trading Fund Resolution.............................. 51

Insurance Companies (Amendment) Bill: second reading................ 54

Insurance Companies (Amendment) Bill: committee stage............... 56

Public Service Commission Ordinance................................. 57

Protection of Wages on Insolvency Ordinance......................... 58

Interpretation and General Clauses Ordinance........................ 60

HK Association of Banks (Amendment) Bill 1995: committee stage... 61

COMAC’s Seventh Annual Report....................................... 62

Sex education....................................................... 62

/Quality of...

Contents

Rag£_Nox

Rights enjoyed by female indigenous villagers............................ 64

Rules on briefing out prosecution and legal aid cases.................... 65

Legal aid officers required to declare conflict of interest.............. 67

Quality of water from Dongjiang River...................................  68

Responses on the Consultation Paper on Legal Services.................... 70

Views on Consultation Paper on Legal Services to be assessed............. 71

Criminal liability for deaths arising from HAIs...................... 71

Hong Kong's trade deficits up............................................ 73

'• 1' •

Health care for Vietnamese boat people................................... 75

Loss of crops compensation for farmers................................... 76

Parking space in public housing estates.................................. 77

Complaints handled by Medical Council.................................... 78

Student Travel Allowance Scheme.......................................... 80

Community development project........................................ 81

Relationship between ExCo and LegCo after 95 election................... 83

Substitute teachers in Govt schools..................................... 84

University teachers undertake outside work.............................. 86

Patients seeking accident and emergency treatment....................... 88

Drug abuse centres...................................................... 90

Dispensing of medicines by private doctors.............................. 91

Medical services for Yuen Long residents................................ 93

1

Formulation of comprehensive broadcasting law ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Recreation, and Culture, Mr James So, in the motion debate on formulation of comprehensive broadcasting legislation in the Legislative Council today (Wednesday):


Mr President,

I fully note the views expressed by Members at this debate and entirely share Members' desire to establish a broadcasting regulatory environment in Hong Kong that is open, fair, competitive and well-defined, and conducive to promoting Hong Kong as a broadcasting centre in Asia. I would like to state at the outset that this has been the cornerstone of our broadcasting policy. Contrary to what some Members said and understood, we have already provided such an environment for the broadcasting industry to develop, and Hong Kong is fast moving towards becoming a broadcasting centre in Asia.

Let me first describe our broadcasting policy and regulatory framework to give Members a clear idea of the kind of broadcasting environment already in place. Our broadcasting policy centres on the simple aim of providing the widest possible choice of programmes to the public at a reasonable cost. To achieve this policy aim, we have set up a broadcasting regulatory environment embodying the following principles:

* The first is to open up the market to as many forms of broadcasting as the market can bear and to provide a level playing field for all broadcasters to freely pursue their business in a fair and equitable environment with the minimum necessary control from the Authorities. Our aim is to encourage fair competition within an open and simple regulatory framework, where each licensee knows clearly where he stands. Thus different licensing conditions are imposed on different forms of broadcasting to take account of their special circumstances, but all are required to observe certain common rules, such as those governing free competition, programme standards, advertising standards, technical standards, and customers services standards, etc. In this regard, I should point out that different codes of practice governing these areas are applied to terrestrial TV, subscription TV, satellite TV and sound broadcasting to reflect the difference in nature of their operations.

- 2 -

* The second principle is to safeguard freedom of expression and information. In this regard, we have abolished precensorship and have laid down clear rules guarding against extensive cross-media ownership which may lead to monopolies, as well as against excessive foreign control of any local broadcasting stations (as supposed to regional or global ones) through foreign ownership restrictions.

The third principle is to protect viewers’ interests. This is achieved partly by the first principle whereby the diversity obtained will ensure that viewers are offered the widest possible choice of programmes through as many different broadcasters as the market can sustain, and partly through requirements of the broadcasters to observe strict codes of practice relating to technical quality, programme contents and customer services issued by the Broadcasting Authorities from time to time as part of the regulatory framework.

As a result of the broadcasting regulatory environment set up basing on the above principles, the Hong Kong broadcasting industry has undergone rapid and significant development and growth in the last 5 years. In 1990, we had only 2 terrestrial TV stations broadcasting 4 free-to-air channels. Now we have a total of 28 TV channels available to the Hong Kong viewers. These include 4 terrestrial free-to-air channels, 4 free-to-air satellite channels and 20 subscription channels. All these broadcasters have their licences ...well beyond 1997 and these licences have been fully endorsed by the Chinese. So we do have the Chinese acknowledging our licensing and environment and framework. In addition, we have 6 foreign and local broadcasters using Hong Kong as a base to uplink their TV services to the Asia Pacific region through satellites serving the region. We also have two highly reputable international broadcasters, namely CNN and CNBC, have also chosen to set up their production centres in Hong Kong. This rapid development and growth of the broadcasting industry in Hong Kong in the short space of 5 years is a clear testament to the soundness of our broadcasting policy, and the attractiveness of our broadcasting regulatory environment. If our broadcasting regulatory environment is not well defined, clear, open and fair, we would not be able to attract so many local and foreign broadcasters to establish their broadcasting services in Hong Kong. The fact that so many of them are now established in Hong Kong is a clear indication that we have already become a broadcasting centre in Asia.

I would like to say at this point that the Broadcasting Authority has played a very active and constructive role in helping to set up this attractive regulatory environment. I wish to thank the Broadcasting Authority for its contribution in both advising the Administration on policy and in regulating the broadcasting industry. I would like to point out that the Broadcasting Authority has both the common sense and the technical know how and expertise to deal with all technical matters because the Director of the Office of the Telecommunication Authority is a member of the Broadcasting Authority and the whole of the Telecommunication Authority and its expertise is behind the Broadcasting Authority in giving advice.

3

However, we are not resting on our laurels. We fully realise that our existing broadcasting legislation, being technology based, is wanting. Furthermore, as it is scattered in three different Ordinances, namely the Television Ordinance, the Telecommunication Ordinance and the Broadcasting Authority Ordinance, it is difficult for any new broadcasters to focus. We have therefore started examining our broadcasting legislation some 2 years ago with a view to bringing about a comprehensive and more up-to-date piece of legislation to regulate the industry. The result of this exercise is the recent production of a first draft of a piece of legislation which aims to achieve the following:

First, to bring all relevant legislation governing the licensing of all types of broadcasters under one comprehensive piece of legislation;

* Secondly, to turn the fundamental philosophy of regulating the broadcasting industry from one based on technology to one based on programmes to ensure that the legislation could cope with the rapid technological changes in the industry in future; and

* Lastly, to deal with and further clarify the issues of foreign and crossmedia ownership to reflect the status of Hong Kong as the broadcasting centre of Asia.

We are now carefully studying this new piece of draft legislation with a view to bringing it forward to this Council in the next session for consideration and debate after we have consulted the industry. Some Members have criticised us for not moving fast enough and have said that part of the delay was due to difficulties arising from consultation with the Chinese. I fully appreciate Members' sentiments here, and would just like to say that this is a highly complex and difficult piece of legislation to draft; a task made more difficult by the rapid development and changes, especially in technology, in the industry in the last few years. The slow progress is entirely the result of this factor and has nothing to do with difficulties arising from consultation with the Chinese. Indeed, we have not started consultation with the Chinese on the draft legislation. We are not ready yet, but we will certainly have to consult them at some stage before finalising the legislation for enactment. I would however like to assure Members that we have now got a clear working draft, and I shall exert my best endeavour to bring this piece of draft legislation to this Council in the next session for Members' scrutiny.

4

Mr President, we are also aware that there is still potential for growth in Hong Kong's broadcasting industry, especially in the subscription TV market. Let me remind Members that it is our declared policy to deregulate the subscription TV market in Hong Kong after Wharf Cable's exclusivity ends on 31 May 1996. However, we do not want just to throw open the market to all. To do so would be acting irresponsibly as it is likely to create confusion and chaos. We should first assess what impact deregulation of the subscription TV market would have on the Hong Kong broadcasting industry as a whole and then decide how best the market should be deregulated in a structured and orderly manner, with minimal impact on both existing and potential broadcasters.

To do this, we have decided to carry out a major review with the help of an independent consultant. We expect this review to be completed in early 1996, in time for us to license new subscription TV broadcasters once Wharf Cable's exclusivity runs out. The important policy issues to be examined in the review include the following:

(a) whether new subscription TV licences should be issued and if so how many should be issued and at what pace;

(b) whether district based subscription TV licences within Hong Kong should be issued, and if so at what pace;

(c) whether the existing cross ownership restrictions should be relaxed to permit existing TV licensees to branch out in the subscription TV business and vice versa;

(d) what restrictions, if any, on a review of the foreign ownership should be

imposed on existing and prospective broadcasting licensees;

(e) whether SMATV operators should be allowed to provide subscription TV services;

(f) whether the advertising ban on Wharf Cable should be lifted or only permitted on terms, and if so, on what terms;

(g) whether new subscription TV licensees should be allowed to carry advertisements or only permitted on terms, and if so, on what terms;

(h) what potential financial impact, if any, the de-regulation of subscription TV will have on existing broadcasters; and

,-4

;:7 - 5 -

(i) whether there should be any restriction on the number of channels per operator allowed; and

(j) whether fixed telecommunication network services licensees and cable network operators should be required to rent out their spare transmission capacity to potential subscription TV operators on a fair and non discriminatory manner.

Members can see from that list that this review covers a very wide range and highly complex issues and clearly it would take time to complete. We hope this review will provide us with the necessary parameters to determine the basis for the deregulation of the subscription TV market in Hong Kong next year.

Mr President, let me close by re-emphasising that Hong Kong already has a well-defined, open and clear broadcasting regulatory environment and that Hong Kong is fast becoming a broadcasting centre in Asia. This notwithstanding, we are taking action to address the issues which are of concern to Members and to the industry, namely the drafting of a comprehensive piece of legislation to bring our broadcasting law more up-to-date and making it more user friendly, and to determine a detailed and structured approach to deregulate the subscription TV market after May 1996. We fully appreciate the need to expedite action on these issues so that the momentum we have gained in the past few years in assisting the development of the broadcasting industry in Hong Kong is not lost.

So with these remarks, Mr President, I support the motion.

End/Wednesday, July 19, 1995

New broadcasting legislation in the pipeline ♦ ♦ ♦ ♦ ♦

A comprehensive piece of legislation to bring the broadcasting law more up-to-date and make it more user friendly will be introduced into the Legislative Council in the next session.

This follows a two-year study by the Government on the existing broadcasting legislation which is both inadequate and difficult for any new broadcasters to focus.

The proposed legislation aims to bring all relevant legislation governing the licensing of all types of broadcasters, including the Television Ordinance, the Telecommunication Ordinance and the Broadcasting Authority Ordinance, under one roof.

6

It also seeks to turn the fundamental philosophy of regulating the broadcasting industry from one based on technology to one based on programmes to ensure that the legislation could cope with the rapid technological changes in the industry in future.

In addition, the new legislation will deal with, and further clarify, the issues of foreign and cross-media ownership to reflect the status of Hong Kong as the broadcasting centre of Asia.

This was announced by the Secretary for Recreation and Culture, Mr James So, during the motion debate on the formulation of comprehensive broadcasting legislation at the Legislative Council meeting today (Wednesday).

Mr So refuted criticisms by some Members that the Government was not moving fast enough and that the delay was due to difficulties in consulting the Chinese.

The slow progress, he explained, was mainly because it was a highly complex and difficult piece of legislation to draft and a task made more difficult by the rapid development and changes, especially in technology, in the industry in the last few years.

"It has nothing to do with difficulties arising from consultation with the Chinese,” he stated.

"Indeed, we have not started consultation with the Chinese on the draft legislation. We are not ready yet, but we will certainly have to consult them at some stage before finalising the legislation for enactment.

"I would however like to assure Members that we have now got a clear working draft, and I shall exert my best endeavour to bring this piece of draft legislation to this Council in the next session for Members’ scrutiny." Earlier, Mr So told the Council that Hong Kong had already provided a well-defined, open and clear broadcasting regulatory environment for the local broadcasting industry.

In 1990, there were only two terrestrial TV stations broadcasting four free-to-air channels in Hong Kong. To-date, a total of 28 TV channels are available to Hong Kong viewers. These include four terrestrial free-to-air channels, four free-to-air satellite channels and 20 subscription channels.

7

In addition, six foreign and local broadcasters are using 1 long Kong as a base to uplink their TV services to the Asia Pacific region while two reputable international broadcasters - CNN and CNBC - have also set up their production centres here. "This rapid development and growth of the broadcasting industry in Hong Kong in the last five years is a clear testament to the soundness of our broadcasting policy, and the attractiveness of our broadcasting regulatory environment," said Mr So. "If our broadcasting regulatory environment is not well defined, clear, open and fair, we would not be able to attract so many local and foreign broadcasters to establish their broadcasting services in Hong Kong.

"The fact that so many of them are now established in Hong Kong is a clear indication that we have already become a broadcasting centre in Asia."

Despite this, Mr So admitted that there was still potential for growth in Hong Kong's broadcasting industry, especially in the subscription TV market.

But he was quick to add that the Government would not want just to throw open the market to all although it was Government's declared policy to deregulate the subscription TV market after Wharf Cable's exclusivity ended on May 31 next year.

To do so would be acting irresponsibly as it was likely to create confusion and chaos, he warned.

"We should first assess what impact deregulation of the subscription IV market would have on the Hong Kong broadcasting industry as a whole and then decide how best the market should be deregulated in a structured and orderly manner, with minimal impact on both existing and potential broadcasters.

"To do this, we have decided to carry out a major review shortly with the help of an independent consultant. Wc expect this review to be completed in early 1996, in time for us to license new subscription TV broadcasters once Wharf Cable's exclusivity runs out." said Mr So.

The motion, as proposed by the I Ion Man Sai-cheong, was passed.

End/Wednesday. July 19. 1995

8

Accommodation problem of single elderly persons *****

Following is a speech by the Secretary for Housing, Mr Dominic Wong, in the motion debate on accommodation problem of single elderly persons in the Legislative Council today (Wednesday):

Mr President,

I have listened with interest to comments made by Honourable Members on the need to provide adequate accommodation and care for single elderly people, and am grateful for their views and suggestions.' I shall respond briefly to the main points raised.

Policy commitments

In the past two decades at least, the Government has placed great emphasis on providing accommodation for the elderly in public housing estates. In his Policy Addresses in 1993 and 1994, the Governor again stressed our intention to meet the housing needs of elderly people. Specifically, we have pledged to clear, by 1997, the backlog of about 4,000 single elderly people on the public housing Waiting List in 1993. We have undertaken to give priority to elderly people who apply for public housing, and to families living together with elderly members. We will tackle the problem of some 27,000 elderly people living in sub-standard accommodation, who have not yet come forward to register on the Waiting List for public housing. This is an ambitious but still realistic programme.

Giving priority to the elderly

The Housing Authority fulfils these commitments by according priority housing allocation to eligible elderly people through three complementary schemes. First, under the Elderly Persons Priority Scheme, elderly people who are willing to share accommodation will normally be allocated a flat within two years after registration. Second, to encourage families to look after their elderly members, the Families with Elderly Persons Priority Scheme shortens by three years the waiting time for housing allocation to families with one or more elderly members. Third, priority is given to single elderly people applying for public housing. To date, half of the 4,000 single elderly registered on the Waiting List in 1993 have already been rehoused, and we will rehouse the remainder by 1997.

9

Types of p.u.bJk.lLQ.usins for the elderly

In providing accommodation for the elderly, we take into account their preferences and their state of health. Some elderly people want to live alone while others prefer communal living so that they can support one another physically, socially and emotionally. In order to cater for different needs, both self-contained and shared accommodation is provided.

Self-contained flats, which range in size from 10 to 25 SQM, are allocated to elderly singletons who wish to live alone. For those who are disabled, the flats arc also provided with handrails and ramps for wheelchairs.

Shared flats are provided in response to demand from single elderly people. There are partitioned flats with shared facilities. In recent years, specially designed flats are provided. Each tenant has a bedroom and shares a common living area, bathroom and kitchen with up to three other elderly tenants. A 24-hour warden service is provided, and wardens also help to promote mutual care and social contact.

I should point out here that the concept of shared accommodation is a deliberate policy to provide companionship and mutual help, which can enrich the daily lives of elderly people for whom loneliness may become a serious psychological burden. I am glad that the Honourable Peggy Lam generally support this concept. It is true that some older people find it difficult to adjust to communal living and relationships may break down. The Housing Department staff will try to mediate and advise as far as possible. If professional help is required, staff will seek assistance from social workers based in nearby family services centres. If it then becomes clear that they can no longer share accommodation with others, separate accommodation will be arranged.

Like some Honourable Members, I was sorry to learn about the recent incident in Tai Po. I agree with the Honourable Y F Hui that it is one of the rare cases and all the more tragic since the problem had been identified and alternative accommodation had been arranged. In the past 10 years, the number of similar incidents known to us is very few. Such incidents do not invalidate the social benefits of the shared accommodation concept for the elderly. I say this because according to a survey conducted a few months ago, a very high proportion of respondents living in shared flats said that they were satisfied with the accommodation and facilities provided.

Catering for future demand

As part of our continuing commitment to improve the quality of life for elderly people, the size and quality of new flats will be further upgraded as from 1997 to provide larger bedrooms, more bathrooms and kitchens, to reduce sharing, and more spacious living and common areas. I am that that our cause of action is in line with the Honourable Allen Lee’s suggestion.

10

The Honourable Lee Cheuk-yan referred to demand. In order to increase the supply of flats suitable for allocation to elderly people, we are building on new urban sites, infield sites and on low rise structures. A total of about 23.500 new units will be allocated for elderly people in the coming four years in addition to refurbished units. We will of course review future demand and provision.

We have previously considered the idea of building large housing estates dedicated entirely to the elderly, as proposed by the Honourable Lee Cheuk-yan. Our conclusion was that many elderly people would probably feel stigmatised by such a scheme. Furthermore, large areas of inexpensive land would only be likely to be available in remote areas. We would not wish to give the impression of exile or the feeling that elderly people should be physically separated from the rest of the community. On the contrary, we would do our best to encourage elderly people to lead an independent and dignified life as part of the community, and not in isolation.

Services for the elderly in public rental housing estates

Turning now to services for the elderly in public housing estates I would like to point out that there are services tailored to meet their needs. For example, the Housing Authority has introduced the Estate Liaison Officer Scheme under which staff are deployed to promote mutual help and foster community care among elderly tenants. Increase provision of such officers is being planned as already been suggested by some Honourable Members. Emergency alarm systems have gradually been installed in flats for single elderly tenants with a monitoring service being provided by estate office staff. I can confirm that consideration is now being given to implementing the concept of contracting out the management of flats for the elderly to welfare agencies, whose workers are well trained to look after the personal and social needs of elderly people.

My colleague the Secretary for Health and Welfare has asked me to point out that there are 160 social centres and 24 multi-service centres for the elderly, providing important community support for all elderly persons in the territory, including those living in public housing estates. A major expansion of centres and services is being planned for the next two years. Elderly people who need extra help can also receive telephone counselling through the Social Welfare Department's Hotline Service. Later this year, the Social Welfare Department will embark on a new programme, entitled "Older Volunteers Programme", which will mobilise elderly people to reach out to their peers in the neighbourhood, and to help in identifying those in special need.

Indeed when planning new housing estates. Mr President, the Housing Authority is very conscious of the need to consult other Government departments to ensure that there is adequate provision of community facilities and welfare services, which also satisfy the social and emotional needs of elderly people.

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Conclusion ;

In conclusion, Mr. President, the Government already accords high priority to the housing needs of the elderly in the territory. Improvements in quality will continue to be made in future. The concept of "ageing in place" (also known as "care in the community") is at the heart of the Government's approach in the provision of ' ' services to the elderly. Our aim is to enable elderly people to lead an independent and dignified life as part of the community as far as possible. I believe that we have a good track record. However, we welcome constructive suggestions from Honourable Members on future development. With these remarks, Mr President, the Administration supports the motion.

r.'j ’• ' ! ..

Thank you. •. •« . ,

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■ r- .. . ■' ■' ■ ■■■ -

End/Wednesday, July 19, 1995

"* • *’ ’4 .

Airport Authority Bill

♦ « ♦ ♦ ♦ i; l’.:J

. ■ • ... . . , . . ■ ;

Following is the speech by the Secretary for Economic Services, Mr Gordon Jfl Siu, at the resumption of the second reading of the Airport Authority Bill in the Legislative Council today (Wednesday):

Mr President,

I would like to start by thanking all Members of the Bills Committee, in particular the Chairman, the Honourable Peter Wong, and the Deputy Chairman, Dr ’ ,l1 the Honourable Samuel Wong, for the expeditious yet extremely thorough examination of the Bill during these two very busy months. Without the exceptional efforts on the part of all concerned, we would not be able to resume the Second Reading debate on the Bill today, thereby ensuring that this important piece of legislation can be enacted before the end of the current session.

Between 1 June and 4 July 1995, the Bills Committee met eight times. Members sought clarification on many issues. The Administration provided five notes to clarify the issues raised by Members. We also considered Members' views very carefully with a view to incorporating as many of the suggestions as possible, as the “• Hon Peter Wong has said. At Committee Stage, I shall be moving a number of amendments as agreed with the Bills Committee so as to cover the following issues.

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Delegation

To address concerns expressed about the Authority's power to delegate its functions to outside bodies, I propose to amend Clause 9(1) of the Bill so that subject to Clause 9(7), the Authority may, except with the prior approval of the Financial Secretary, delegate its functions only to its members, employees, committees and subsidiaries. This amendment will tighten controls over the Authority's powers of delegation, without inhibiting delegation to outside bodies if circumstances so justify.

Committees

In view of the important role which committees of the Board will play in the effective functioning of the Authority, Members suggested that the chairmen of all committees established by the Authority should be members of the Airport Authority. They also considered that, in view of the particular importance of its functions, the Audit Committee should have a minimum number of members.

In line with Members' views, I shall be moving amendments to Clause 10(2) and Clause 31(2)(a) of the Bill respectively, to provide that the chairman of a committee shall be a member of the Authority and that the Audit Committee shall have a minimum of three members. The latter is in line with the recommendation of the United Kingdom Cadbury Report on Corporate Governance and I thank the Hon Samuel Wong, the Hon Eric Li and the Hon Roger Luk for drawing the concepts enshrined under this report once again to our attention.

Quorum

Members have suggested that decisions taken by the Board should reflect the views of both public and non-public officers. I do find it difficult to imagine a meeting where decisions would be taken only by public officers. Nevertheless, given the importance of ensuring, at all times, a proper balance of advice from Board members, I shall be moving an amendment to Clause 11(8) to provide that the quorum shall, in addition to other requirements, include at least two members who are not the Chairman, the Chief Executive Officer or a public officer.

Declaration of interest

To enhance confidence in the integrity of the operation of the Airport Authority, Members suggested that it should keep a register of interest declared by its members under Clause 13(1) of the Bill and open it for public inspection. The Provisional Airport Authority already adopts this practice administratively. And in deference to Members' requests that the practice be made a legal requirement, I will be moving an amendment to Clause 13.

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Accounting

On the advice of accounting experts in the Bills Committee, I shall also be amending Clause 32(2) to reflect the fact that the profit or loss account and cashflow statement, which forms part of the statement of accounts, cover the whole financial year rather than only the position as at the end of the financial year.

Auditor

Members were concerned that the Bill should safeguard the independence of the external auditor of the Airport Authority. To put the matter beyond doubt, I shall be moving an amendment to Clause 32(4) to provide that the auditor shall not be a member or an employee of the Airport Authority, or a member of its Audit Committee. The amendment will also restrict the appointment by the Airport Authority of a partnership or company as auditor, if one of their partners or directors is a member or an employee of the Authority, or a member of its Audit Committee.

Business Plan

The Bill provides that the Authority shall send a five year financial plan to the Financial Secretary. 1 shall be moving an amendment to Clause 33 to require the Authority also to send to the Financial Secretary a business plan for the coming five years, instead of only the next financial year as currently specified.

In addition I shall also be moving a number of purely technical amendments which covers drafting, textual and other changes.

Committee stage amendments proposed by the lion Albert Chan

The Hon Albert Chan has given notice that he intends to move four Committee Stage amendments. These are not endorsed by the Bills Committee as a whole and I have to say that I have problems with them and that I am afraid I shall be asking members not to support them. He also commented, and I think also other members, and if I have misquoted them, I apologise, on the fear of the monopolistic nature of an Airport Authority. Let me just assure Members that when we look at services provided at our new airport, we shall be adopting as open, as pro-competitive, and as pro-choice, a range of operations as we can encourage so that members of the public and travelling citizens would have a wide range of services to choose from. Airlines also would benefit from the fact that they would not only have to work with one set of companies providing the different essential services such as maintenance, catering, and so on.

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Nomination of Airport Authority members

As regards nomination of Airport Authority members, the Hon Samuel Wong and the Hon Steven Poon have already commented why the proposed amendment to require a proportion of the membership of the Authority be nominated by the Legislative Council cannot be supported. I agree with them that it would be wrong to fetter the power of the Governor to appoint as members of the Authority, those he considers best qualified for the job. I hope Mr Chan on further reading of the Section 3(3)(d) of the Bill will see that the Administration's policy intention, which is that that should be as wide a range of experience as possible for as members are already enshrined in the Bill.

Long term interests of Hong Kong •

As regards the so call long-term interests of Hong Kong, I find it difficult to support the suggestion that the Bill should include a provision to the effect that the Authority should take into account the long term interests of Hong Kong in addition to conducting its business in accordance with prudent commercial principles. I have no doubt that, in conducting their business. Members of the Authority will take into account the long term interests of Hong Kong, I do not see the need to specify this in the law. The Bill already contains a large number of provisions aimed at safeguarding the public interest which would include the overall interest of Hong Kong, long or short term. I am glad to note that the Hon Steven Poon and other members of the Liberal Party subscribe to this view.

Open meetings of the Board of the.Airport Authority

The Hon Albert Chan has also proposed an amendment to require that, with certain exceptions, meetings of the Board of the Airport Authority should be open to the public. First, may I say that we fully understand the wish for transparency and accountability. However, this arrangement is not in line with the practice of the Mass Transit Railway Corporation and the Kowloon-Canton Railway Corporation, both of which like the Airport Authority conduct their business in accordance with prudent commercial principles. Nor is it in line with the practice of companies in the private sector which the Airport Authority would expect to do business with.

A further practical problem is that many of the issues to be considered by the Board are likely to fall into the category of information not for public disclosure because they may touch on matters which are confidential to Members and/or commercially sensitive. In sum, I consider the proposed amendment to be neither appropriate nor practical.

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Director of Audit

I know that the role of the Director of Audit in relation to the Airport Authority has been widely debated. In moving the Second Reading of this Bill, I have already pointed out that Section 15 of the Audit Ordinance provides that "Notwithstanding that he is not empowered by any Ordinance to audit, examine or inquire into the accounts of a person, body corporate or other body, the Director may audit, examine or inquire into the records and accounts of any person, body corporate or other body if he is so authorised in writing to do so by the Governor in the public interestClause 32(7) of the Airport Authority Bill makes it clear that this section of the Audit Ordinance applies to the Airport Authority.

As the Airport Authority will be conducting its business in accordance with prudent commercial principles like the Mass Transit Railway Corporation and the Kowloon-Canton Railway Corporation, its auditing arrangement should generally be on a par with the two corporations and other commercial organisations. Having the Director of Audit audit the annual accounts of a body to be run along prudent commercial lines, in place of a commercial auditor, would be unprecedented and it is unclear how such a departure from normal practice would be received in the market place, for example, by the Authority's lenders and business partners.

The main point, Mr President, is that the Administration does not accept that auditing of the Authority's annual accounts by the Director of Audit would provide better protection of the public interest than the combination, and I emphasise, the combination of the powers provided in the current Bill and the Audit Ordinance.

I will now explain the Administration's position on a number of issues of interest to Members.

Role of the public officer

Members have sought clarification as to how public officers on the Board can, in practice, act in the best interests of the Authority on the one hand, while safeguarding the public interest on the other.

All members of the Airport Authority including public officers have an obligation to act in the best interests of the Authority. This does not mean that by doing so, they will be acting against the public interest. The objectives of the Authority set out in Clauses 5(1) and 6 of the Bill take account of the interest of the community. In the final analysis, even Clause 6(1) which provides that the Authority shall conduct its business in accordance with prudent commercial principles will work to the benefit of the community of Hong Kong as it will minimise the need for more equity injection into the Airport Authority.

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Under Clause 14 of the Bill, a member of the Authority who is a public officer has an added role. He has to draw the attention of the Board to any conflict between a matter before it and the public interest as perceived by him. The purpose is to ensure that the Board would be fully aware of the public interest affecting a matter being considered before it takes the decision. It is of course possible that different public officers may perceive the public interest differently in a particular issue before the Board. This is why as a final safeguard, Clause 20 of the Bill empowers the Governor in Council to issue a direction to the Authority in the public interest regarding the performance of its functions.

Nomination by professional bodies

Some Members have suggested that relevant professional bodies should be able to nominate a proportion of the members of the Airport Authority for appointment by the Governor. As always we are open to suggestions, but a proposal to require the Governor to reserve a proportion of the membership for professional bodies go against the principle that the Governor must ultimately have an unfettered discretion in appointing whom he considers most suitable to be members of the Authority.

Investment, subsidiaries and associated coinpaiiics

In his statement, the Hon Peter Wong has raised the question of a proper control mechanism for investment by the Airport Authority and the need for Government to maintain an overall view of the activities of the Airport Authority including the activities of its associated companies as well as subsidiary companies. May I assure Mr Wong that the Government shares his concern that the funds controlled by the Authority must be handled with the highest level of care and diligence. And by handling, I of course include investing.

Under Clause 25 of the Bill, funds of the Authority available for investment may only be invested in such classes or description of investment as the Financial Secretary may in writing specify. In practice the Board, including public officers, will need to scrutinise every investment strategy proposed by Management. Thereafter, any investment which the Authority wishes to make would be carefully scrutinised by Government before approval would be given by the Financial Secretary.

Whilst a subsidiary is defined by reference to the Companies Ordinance, there is no legal definition for an associated company although the term generally refers to a company in which one has substantial but not controlling interest. I have no doubt that the Board of the Airport Authority, including all the public officers on it, will examine very carefully any justification for the acquisition of a subsidiary or investment in an associated company before authorising them.

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Audit Committee

Members have, and I believe quite rightly, attached great importance to the role of the Audit Committee. Some have suggested that the Committee should table a report in LegCo with the view of making the workings of the Airport Authority more transparent and more accountable to the public. While sympathetic to the spirit of this suggestion, in practice, it would be most exceptional for the deliberations of an Audit Committee of a body run along prudent commercial lines to be subject to this type of public scrutiny. It would, for example, make the Airport Authority subject to a quite different regime of corporate governance from that applicable to our two railway corporations, and other commercial organisations.

The Audit Committee will be a statutory committee appointed by the Airport Authority to perform, in addition to its statutory functions, such delegated functions relating to the financial affairs of the Authority or to assist the Board in overseeing matters of financial control, both internal and external, of the Authority. Clauses 31(2) and (3) of the Bill set out its relationship with the Authority, in effect the Board, to whom the Committee is broadly answerable. As a committee appointed by the Board, it will report to the Board which will then consider how best to respond to its advice. We feel that generally speaking the functioning of the Audit Committee should best follow corporate practice, as it evolves, and that it should not be required to table a report in LegCo.

It is also not considered appropriate for reports on the internal audit and value for money studies undertaken under the direction of the Audit Committee to be made public as these could well contain sensitive information, commercial or otherwise, the disclosure of which might jeopardise the effectiveness of the operation of the Committee and the Authority. However, given the interest of Members in the work of the Audit Committee, I will ask the Airport Authority, once it comes into being, to include in its Annual Report a section describing the work of the Audit Committee in the relevant year. Mixed views have been expressed as to whether Members of the Audit Committee should all be members of the Authority. Our views is that what is important is that the Audit Committee should be independent of the management of the Authority. Therefore, under Clause (3 l)(2b) of the Bill, neither the Chief Executive Officer nor any other employee of the Authority may be appointed as a member of the Audit Committee. The other consideration is to find the best person for the job. It should, in our view, be left to the Authority to decide on the composition of the Audit Committee and whether outside members should be appointed on to it.

18

Business Plan

Members would like the business plans of the Airport Authority to be tabled in this Council. We have some difficulty with this suggestion. As the Authority moves into the operational phase, its business plan will contain more sensitive information. The public disclosure of sensitive information may handicap the Authority’s dealings or negotiations with its commercial counterparts. Nevertheless, in recognition of Members' interest in the on-going workings of the Authority, I shall ask • the Provisional Airport Authority and. in future the Airport Authority, to brief this Council on major expansion plans, commercial ventures and business outlooks.

Airport charges

The Honourable Howard Young has commented on the strongly held concerns on behalf of airlines about the future charging policy of the Authority and related consultation arrangements.

Mr President, as Mr Young knows I am alive to the background to the concerns expressed. The Administration will of course ensure that the airport charges of the Authority will not be in breach of international obligations applicable to Hong Kong. We will ensure the Airport Authority consult airlines before setting airport charges in accordance with our international obligations.

As regards airlines' concerns regarding the future level of charges at the new airport, I would like to point out that whilst the Government will be seeking a reasonable return on its investment. Clause 5( 1 )(a) of the Bill provides, inter alias, that the Authority shall operate the new airport with the objective of maintaining Hong Kong's status as a centre of international and regional aviation. I have no doubt therefore that, in setting future airport charges, the Authority will have due regard to maintaining the competitiveness of our new airport. As regards single till, multiple till, I would suggest that this best be left to discussions between the Administration, the Authority and the airlines because many different views are held by different parties and there is yet no agreed position.

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Conclusion

To conclude, Mr President. I would like to thank members of the Bills Committee, in particular the Chairman, the Hon. Peter Wong, the Deputy Chairman, Dr the Hon Samuel Wong, the Hon Ronald Arculli, the Hon Albert Chan, the Hon Lee Wing-tat, the Hon Eric Li, the Hon J.D. McGregor, and the Hon Steven Poon and the Hon Howard Young, for their invaluable input in helping me to crystallise the package of amendments which I will be moving later. I commend the Bill together with these amendments, which have the wide support of the Bills Committee, to this Council. The enactment of the Airport Authority Ordinance will mark another major milestone for the airport project and will enable the Authority to maintain momentum on its work.

Thank you, Mr President.

End/Wednesday, July 19, 1995

Government welcomes passage of the Airport Authority Bill *****

The Secretary for Economic Services, Mr Gordon Siu, today (Wednesday) welcomed the passage of the Airport Authority Bill by the Legislative Council.

The Airport Authority Bill resumed second reading debate, went through the committee stage and third reading in the Legislative Council today. It was passed with all the amendments moved by the Administration. "We are very glad to see that the Bill has been passed. It marks another major milestone for the airport project and will enable the Authority to maintain momentum on its work." Mr Siu said.

"We will bring the Ordinance into effect and appoint members of the Airport Authority as soon as possible.

"In accordance with the Memorandum of Understanding Concerning the Construction of the New Airport in Hong Kong and Related Questions, we will inform the Chinese side of the members of the Airport Authority whom we propose to appoint and will be willing to listen to any views that the Chinese side might have, before deciding on the appointments."

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The purpose of the Ordinance is to reconstitute the Provisional Airport Authority to enable it to provide, operate, develop and maintain the new airport at Chek Lap Kok.

The Ordinance also defines the functions of the Airport Authority and makes provision for the safe, secure and efficient operation of the new airport.

End/Wednesday, July 19, 1995

Administration of Justice Bill 1995 * * * * *

Following is the speech by the Attorney General, the Hon Jeremy Mathews, in resumption of the second reading debate of the Administration of Justice (Miscellaneous Provisions) (No.2) Bill 1995 in the Legislative Council today (Wednesday):

I

Mr President,

I am grateful to the Chairman of the Bills Committee, the Hon Andrew Wong, and to members of the Bills Committee for their thorough study of this long and complex Bill. I have also taken a careful note of the remarks made by Dr the Hon C.H. Leong and I am happy to give the assurance that he sought.

As Mr Wong has explained, the Administration has agreed with the Bills Committee that a number of amendments to the Bill should be made. As a result, I will be later moving a series of Committee Stage amendments.

In addition to the matters covered by the proposed amendments, members of the Bills Committee raised other issues that were of concern to them.

Female offenders andnrobat.ioneis

One of these issues was the proposed amendment of three Ordinances to remove requirements that the supervising officers of female offenders or probationers must themselves be female. Although members of the Bills Committee supported this amendment as a matter of principle, they were concerned that the assignment of supervising officers to female offenders and probationers should be handled with sensitivity. In particular, members were concerned that, if the female to be supervised objected to a male supervisor, this objection should be considered seriously before a supervisor was chosen. The view was expressed that these amendments should not be regarded as a matter of operational efficiency, but as a means whereby flexibility is' introduced in the interests of those being supervised.

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I have consulted my colleague the Secretary for Health and Welfare, who has policy responsibility for the legislation involved, and the Director of Social Welfare, and I can on their behalf give an assurance that the assignment of supervising officers to females will be handled in the way proposed by members of the Bills Committee.

Criminal libel

Another concern raised by the Bills Committee related to criminal libel. The Bill proposes to repeal the offence under section 6 of the Defamation Ordinance of maliciously publishing a defamatory libel. This offence can be committed by a person with no intention to defame, and it is no defence to show that the statement was true. Some members of the Bills Committee also favoured repealing section 5 of the Defamation Ordinance, which relates to persons who publish a defamatory libel knowing it to be false. It was argued that a civil law remedy is adequate to deal with such publications.

The Administration considers that there may be good reasons for retaining section 5. Many other common law jurisdictions have such an offence, and a civil remedy may not be adequate in some situations. However, it was not possible, at the end of this legislative session, for either the Administration or the Bills Committee to consider fully the advantages and disadvantages of retaining the provision. It was therefore agreed that the issue should not be resolved in the context of this Bill, but should be considered next session by this Council's Panel on Administration of Justice and Legal Services. I am grateful to members of the Bills Committee for agreeing to this course of action.

Offences relating to children

Mr President, I now turn to the Committee Stage amendments that I will be moving later on today. One amendment that will be of general public interest and has relevance to the immediately proceeding debate is the proposed increase in penalties for two offences relating to children. Concern over the inadequacy of the existing penalties was widely expressed after a particular case of ill-treatment to a child was recently prosecuted.

Section 26 of the Offences against the Person Ordinance creates an offence of unlawfully abandoning or exposing a child under the age of 2 years in such a way that the life of the child is endangered or the health of the child is likely to be permanently injured. The current penalty is imprisonment for 3 years. It is proposed to amend the section so that, on conviction on indictment, the penalty is imprisonment for 10 years and, on summary conviction, the penalty is imprisonment for 3 years.

22

Section 27 of the Offences against the Person Ordinance relates to the ill-treatment or neglect of a child or young person by someone who has the custody, charge or care of that person. The current penalties are, on conviction on indictment, a fine of $2,000 and imprisonment for 2 years and, on summary conviction, a fine of $250 and imprisonment for 6 months. The proposed amendment of the section will provide for a penalty, on conviction on indictment, of imprisonment for 10 years and, on summary conviction, of imprisonment for 3 years.

Warnings in respect of smoking

I will also be proposing a Committee Stage amendment in respect of the health warnings that are required in respect of smoking. At present, the health warnings that are required on cigarette packets and advertisements must be in a colour which contrasts with the background upon which they appear. This requirement is rather vague and some warnings are not easily seen. The Bill therefore proposes that the warnings should be printed in black upon a white background.

The Tobacco Institute of Hong Kong made representations to the Administration and to the Bills Committee in respect of the proposed amendments. With regard to cigarette advertise