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





 DAILY INFORMATION BULLETIN

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

Wednesday, March 1,1995

Contents Page No,

Hong Kong success story continues beyond 1997 ........................ 1

HMD AC welcomes the setting up of Health Care and Promotion Fund 2

Quality Week to promote awareness of quality.......................... 2

Tsuen Wan wooden shack demolished..................................... 4

What the Budget means for you.......................................   4

Closure of Mong Kok illegal structures sought......................... 6

Sai Kung lot to let................................................... 6

Flushing water cut in Sha Tin......................................

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

1

Hong Kong success story continues beyond 1997

*****

The recipe for success of Hong Kong's economy, which is enshrined in the Sino-British arrangements for the future, will continue beyond 1997, the Secretary for Financial Services, Mr Michael Cartland, said in London yesterday (Wednesday).

Speaking to about 90 representatives from financial and investment communities all over the world during a presentation at the Asian Companies Expo 95 in Earls Court, Mr Cartland said there were many reasons for confidence about the territory's future.

"For example, Hong Kong is very well placed economically and the market is booming. There is no exchange controls nor barriers to inward foreign investment. We have a stable and fully convertible currency.

"The market players themselves are already looking beyond 1997, taking longer term view and China also participate fully in Hong Kong's economy, indicating their recognition of our importance," he said.

Mr Cartland also believed that a commitment to the rule of law with a Common Law background, an independent judiciary and a determination to fight corruption were some of the important factors that contributed to the strengths of Hong Kong's economy.

Also taking part with the Hong Kong Government Office at the Expo's Hong Kong stand are the Hong Kong Stock Exchange and Hong Kong Futures Exchange.

More than 1,600 fund managers, representatives from investment companies and financial institutions all over the world are expected to attend the three- day Expo which provides opportunities for business leaders to have face-to-face contact with the senior management of Asian companies.

About 110 organisations from Australia, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore and Thailand are featured.

End/Wednesday, March 1, 1995

2

HMD AC welcomes the setting up of Health Care and Promotion Fund

* * ♦ ♦ ♦

The Health and Medical Development Advisory Committee (HMDAC) is pleased to learn that the Government has decided to establish an $80 million Health Care and Promotion Fund, the Chairman of HMDAC, Dr David Fang, said today (Wednesday).

The Chairman noted that the fond would be used to finance health promotion, prevention of disease and research. It would also be used to help patients with rare diseases.

Dr Fang said: "Prevention is always better than cure.

"I am pleased that Government recognises the importance of giving more attention to the avoidance of injury, disease and disability through adequate public education and publicity. The establishment of the Fund is a positive step in this direction," he added.

Dr Fang said the HMDAC was looking forward to being briefed in detail about the workings of the Fund at its next meeting and hoped that the Fund would be able to begin operating soon.

Dr Fang also commented on the Government's proposals to increase the number of first-degree nursing places, to improve the quality of teaching and to employ more health care assistants to take over nurses' non-professional duties.

He said: "Government's nursing initiatives are a welcome measure. They will benefit the profession by improving the training of nurses and their career development, and benefit patients by raising their quality of care."

End/Wednesday, March 1, 1995

Quality Week to promote awareness of quality

♦ * ♦ ♦ ♦

The Industry Department is organising a Quality Week in March to promote the awareness of quality and the application of quality management systems in Hong Kong.

"This is the second time that Quality Week is held following the success of the first Quality Week programme in 1994. We intend to make this an annual event," the Assistant Director-General of Industry, Mr Brian Tyler, said today (Wednesday).

3

"The theme for this year's Quality Week programme is 'Global Demand for Quality and How Hong Kong is Responding'," he added.

The event will be kicked off with an opening ceremony to be held tomorrow (Thursday) which will include a Q-mark Licence Presentation Ceremony, to be followed by a seminar organised by the Industry Department.

The Secretary for Trade and Industry, Mr T H Chau, will officiate at the opening ceremony and the Q-mark Licence Presentation Ceremony.

The Director-General of Industry, Miss Denise Yue. will also be attending the ceremony.

The Quality Week 1995 programme will feature a series of seminars and training courses on quality and quality management, an exhibition on quality management and the launching of a new series of quality posters and quality management Total Quality Management (TQM) booklets.

The Quality Week programme activities are organised by the Industry Department in conjunction with 11 participating organisations.

They are City University of Hong Kong, Hong Kong Productivity Council, Hong Kong Quality Assurance Agency, Hong Kong Quality Management Association, Hong Kong Society for Quality Control, Hong Kong branch of the UKbased Institute of Quality Assurance, Paper Communication Exhibition Services, Hong Kong Q-Mark Council of Federation of Hong Kong Industries, Quality and Reliability Centre of Hong Kong Polytechnic University, Hong Kong Trade Development Council and University of Hong Kong.

Attention News Editors:

You arc invited to cover the opening ceremony of the Quality Week which will begin at 9.15 am tomorrow (Thursday) at Theatre Two, first floor. Hong Kong Convention and Exhibition Centre. Wan Chai.

End/Wednesday. March 1, 1995

4

Tsuen Wan wooden shack demolished *****

The wooden shack erected for the second time on the pavement of Market Street, Tsuen Wan, by former residents of the illegal structures on the roofs of Cheuk Ming Building and Tak Yan House was demolished by government staff this (Wednesday) afternoon.

A Government spokesman said: "Unauthorised occupation of Government land by any person is in breach of the Crown Land Ordinance and will not be tolerated. Those responsible are liable to prosecution."

Of the 24 families affected by the clearance exercise which was carried out on December 19 last year, 16 have requested for Government housing assistance.

So far three families have been rehoused in public rental flats and seven in temporary housing units while two families will shortly be offered rehousing in public rental flats.

Meanwhile, one application is being processed and two others have been rejected as the applicants do not fillfill the established criteria for public housing.

The remaining singleton's application for compassionate rehousing is being considered by the Social Welfare Department.

The spokesman stressed that the rehousing offers had been and would be made strictly on the basis of residents' eligibility under the established policy.

"Rehousing arrangements are not results of radical protest actions by some of these residents." he added.

End/Wcdnesday, March 1. 1995

What the Budget means for you *****

Members of the public will have the opportunity to speak to the Financial Secretary, Sir Hamish Macleod, about the Budget for the new financial year tomorrow (Thursday), the day immediately after the publication of this important document.

The Financial Secretary will take questions from callers phoning in RTHK Radio 1 and 5's "Taikabout" and Radio 3's "Hongkong Today" programmes from 7.45 to 8.45 am.

5

The live broadcast, "Financial Secretary's Hotline", with simultaneous translation, will take place in Broadcasting House, 30 Broadcast Drive, Kowloon.

The phone-in numbers are 187 231 1 for the Chinese language and 2338 8266 for the English.

Later in the morning, the Financial Secretary will meet Chairmen of the 18 District Boards and Chairmen of the two Municipal Councils at 10 am in the Home Affairs Department Headquarters to brief them about the implications of the Budget proposals for the community, and the districts in particular.

In the afternoon, Sir Hamish will be hosting a post-budget press conference at 3 pm in the Information Services Department.

Attention News Editors:

Phone-in Programme

Press members who are interested to cover the programme are requested to arrive at RTHK's Broadcasting House at 7.30 am for a photo- call. Audio and closed circuit facilities will be set up for press members to monitor activities inside the live studio.

DB Chairmen Meeting

A photographic facility has been arranged for the media to take pictures prior to the start of the meeting. Press members are requested to assemble at 9.45 am at the News and Publicity Division of Home Affairs Department. Southorn Centre, 30th Floor, 130 Hennessy Road. Wan Chai.

Press Conference

The press conference will be held at 3 pm at the GIS Press Conference Room, fifth floor. Beaconsfield House.

End/Wednesday, March 1. 1995

6

Closure of Mong Kok illegal structures sought

*****

The Building Authority is seeking to close five unauthorised rooftop structures in Mong Kok so that they can be demolished without endangering occupants and the public.

The unauthorised rooftop structures which are used for dwelling are found at buildings at 21, 25 and 27 Mong Kok Road and at the junction of 27A Mong Kok Road and 475-477 Reclamation Street.

Notices applying for Closure Orders from the District Court under the Buildings Ordinance on June 28 this year have been posted on the premises.

Demolition works are expected to start as soon as the Closure Orders are issued.

End/Wednesday, March 1, 1995

Sai Kung lot to let

* * * * *

The Lands Department is inviting tenders for short-term tenancy of a piece of Government land in Tseung Kwan O. Sai Kung.

Located in Tseung Kwan O. the lot has an area of 17,900 square metres for use as a fee-paying public car park.

The tenancy is for six months, renewable quarterly.

Closing date for submission of tender is at noon on March 17.

Tender form, tender notice and conditions may be obtained from the District Lands Office, Sai Kung, third floor. Sai Kung Government Offices. 34 Chan Man Street, Sai Kung and the District Lands Offices Kowloon. 1 Oth floor. Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon, and the Lands Department, 14th floor, Murray Building. Garden Road.

Tender plan can also be inspected at these offices.

End/Wednesday. March I. 1995.

7

Flushing water cut in Sha Tin

*****

Flushing water supply to some premises in Sha Tin will be temporarily suspended from 8 am to 11 pm on Friday (March 3) to facilitate checking of the supply system.

The affected areas will include Lek Yuen Estate, Lek Yuen Clinic, Wo Che Estate, the section of Yuen Wo Road to the east of Sha Tin Rural Committee Road, Sha Tin Technical Institute, Ti-I College, Jubilee Garden and Hong Kong Sports Institute.

End/Wednesday, March 1, 1995

Hong Kong Monetary Authority money market operations *****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,917 0930 -46

Closing balance in the account 1,820 1000 -196

Change attributable to : 1100 -194

Money market activity -197 1200 -193

LAF today -900 1500 -193

1600 -197

LAF rate 4.25% bid/6.25% offer TW1 120.2 *-0.1* 1.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.01 15 months 2605 6.35 99.63 6.77

1 month 5.25 24 months 2702 7.50 100.75 7.21

3 months 5.97 29 months 3707 6.95 99.42 7.34

6 months 6.30 35 months 3801 8.00 101.58 7.52

12 months 6.70 58 months 5912 8.15 100.96 8.06

Total turnover of bills and bonds - $28,949 MN

Closed March 1, 1995

End/Wednesday, March 1. 1995

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, March 1,1995

Contents Page No?

1994 economic success benefits whole community......................... 1

Economy will continue to do well in 1995 .............................. 2

China links key to HK's economic prospects............................. 3

Support to free trade pledged.......................................... 4

Three factors to fight inflation....................................... 5

Keep Hong Kong competitive............................................. 7

Encouraging development of service sector.......................... 11

Budget strategy "clear and consistent”................................ 12

Comprehensive social security assistance being examined............... 13

The 1994-95 outturn................................................... 15

Draft expenditure estimates 1995-96 .................................. 16

Budget process explained.............................................. 18

New initiatives for 1995 spelt out.................................... 18

HK makes substantial improvement in social services................... 21

/Revenue proposals....

Contents

Page No,

Revenue proposals to reward enterprise and promote equity............... 22

Tax concessions for those with special needs............................ 23

No changes in corporate tax............................................. 24

Estate duty exemption level rises to $6 million......................... 25

Tobacco and fuel duties up eight per cent............................... 26

No changes in alcohol duty.............................................. 27

Stepping up tax enforcement............................................. 28

Small deficit fbr 1995-96 .............................................. 29

Reserves in 1997 ....................................................... 30

Consultations with China on 1997-98 Budget.......................... 31

Prudent in public spending.............................................. 32

TV broadcast by the FS.................................................. 33

Putonghua as school subject............................................  36

Robberies in elevators.................................................. 38

Building of primary schools............................................. 40

Two-way permit holders working in HK.................................... 41

Measures to reduce congestion at airport arrivals hall.................. 42

Staffing of Agriculture and Fisheries Department........................ 44

Cases handled by Minor Employment Claims Adjudication Board......... 45

/Odour from..

Contents

EageNo.

Odour from nullah at Tsui Ping Road.................................... 46

Non-local Higher and Professional Education (Regulation) Bill.......... 47

Safety of dangerous goods.............................................. 49

Tolo Harbour water quality......................................... 51

Hong Kong/Taiwan air services.......................................... 52

Comprehensive Development Area zoning.................................. 54

Plans to tackle juvenile crime......................................... 56

Licensing of travel agents............................................. 58

Sponsorship by tobacco industry........................................ 60

Applications to defer payment of tuition fees.......................... 62

Newly qualified drivers more prone to accidents........................ 64

No plan to demolish Jordan Valley Flatted Factory...................... 66

1994 economic success benefits whole community *****

Economic success last year has benefited the whole community, but rising prices remained a cause for concern, the Financial Secretary, the Hon Sir Hamish Macleod, said.

Reviewing the economic performance last year in his 1995/96 Budget Speech, he said the workforce continued to enjoy virtually full employment, higher real incomes and a rising standard of living.

GDP grew by 5.5 per cent, marginally lower than the most recent forecast of 5.7 per cent but still a considerable achievement.

Investment spending grew by 13 per cent, almost double the average annual rate over the past decade.

Total exports grew by 10 per cent and re-exports by 14 per cent. Hong Kong is the world's eighth largest trading community, and likely soon to move even further up that particular league table.

Exports of services grew by 7.5 per cent. Hong Kong is probably the world's 11th largest exporter of services.

Reflecting the expansion of the financial services, the value of Hong Kong dollar private sector debt issues more than tripled, to $60 billion.

In last year's Budget, inflation was forecast to be 8.5 per cent for the year.

"We did rather better than expected, with an inflation rate of 8.1 per cent. But the pressure on prices remains too high for us to be complacent," Sir Hamish said.

Explaining the foundations on which all four of his budgets have been built, he said they were entirely consistent with the principles that had guided Hong Kong's economic success for almost half a century.

They are entirely consistent with the principles set out in the Basic Law, he added.

- 2 -

This means that not only are they the economic compass which has steered Hong Kong safely through times of turbulence as well as its boom years, but there is also every reason to be confident that they will continue to do so, he said.

Sir Hamish said consensus capitalism, the search for a balance between the market economy and an adequate welfare safety net, had been at the heart of his approach to the preparation of the four budgets.

End/Wednesday, March 1, 1995

Economy will continue to do well in 1995 ♦ ♦ * * ♦

The Financial Secretary, the Hon Sir Hamish Macleod, believed that overall, the economy would continue to perform well this year.

Presenting his fourth and last Budget to the Legislative Council today (Wednesday), Sir Hamish said Hong Kong appeared to have established a pattern for the 1990s of steady, sustainable growth, one which is high by the standards of other advanced economies.

"Although overall growth in 1995 looks like being similar to that in 1994, it is of course true that, as always, we must be prepared to respond at short notice to sudden shocks and reverses in world trading conditions," he said.

Sir Hamish forecast the following real increases for 1995:

* GDP will rise by 5.5 per cent.

* GDP per head will rise to over US$24,000.

* Total exports will rise by 13 per cent. Domestic exports will increase by 2 per cent and re-exports by 16 per cent.

Exports of services will grow by 9 per cent.

In addition, Hong Kong’s trade in goods and services will continue to show a positive balance.

- 3 -

Though this year began on a more pessimistic note, Sir Hamish said: "Our policies must be based on the underlying, long term realities, not the short term vagaries of the market.

"Thus, we must keep firmly in mind the fact that our economic fundamentals are sound, and that we have good reason to expect that we will be able to overcome any difficulties which 1995 and beyond may bring," he added.

Sir Hamish said taken overall, business opportunities for this year appeared to be promising.

Most of Hong Kong's major trading partners are expecting faster rates of growth than for some time. And all this is against a background of increasing support for the removal of barriers to world trade.

End/Wednesday, March 1, 1995

China links key to HK's economic prospects *****

Economic links with China remain the single most important factor in Hong Kong’s economic prospects, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday) in his Budget Speech.

These links are still expanding into new areas of China, and into different sectors of China's economy, he said.

Last year, Hong Kong's trade with China grew by 15 per cent to $885 billion.

Hong Kong remains the largest external investor in China, with a cumulative realised investment of around US$60 billion.

China is probably the largest external investor in Hong Kong. The positive impact of China's economic growth on Hong Kong has been particularly important for its service sector.

Sir Hamish said the Chinese economy had been set the goal for 1995 of high but sustainable growth, with moderating inflation.

•i

- 4 -

It is very much in Hong Kong's interests that these objectives be achieved, because China's booming markets remain the main engine of Hong Kong's economic success, he said.

Referring to negotiations for China to become a founding member of the World Trade Organisation, the Financial Secretary said: "We must hope that the remaining difficulties can be overcome quickly, and the necessary reforms which must accompany accession be agreed."

In that case, China can take its full and rightful place in the international trading community, and its trading partners can in turn benefit from improved market access and greater transparency and certainty in trading rules and procedures.

End/Wednesday, March 1, 1995

Support to free trade pledged ♦ ♦ ♦ ♦ ♦

Hong Kong will offer vigorous and enthusiastic support to developing a blueprint to implement the vision set out in the Bogor Declaration, working towards free trade in the Asia-Pacific region by 2020.

The commitment was reiterated by the Financial Secretary, the Hon Sir Hamish Macleod, as he delivered the 1995/96 Budget Speech today (Wednesday).

”We have to do all we can to make this particular vision become reality.

"This will not be an easy task, and the commitment is all the more remarkable when viewed against the historical attachment of many members to protectionist policies.

"But in the case of Asia-Pacific Economic Co-operation (APEC), I am an optimist. 1 believe APEC members have the capacity to set a good example to other trade groupings around the world.

Trade with APEC members accounts for almost 80 per cent of Hong Kong's total trade and has been growing at an average annual rate of 19 per cent over the last decade.

5

Looking at world trade in the coming year, Sir Hamish said: "We can look forward to significant reductions in both tariff and non-tariff barriers to trade.

"As a major international business centre, we will also gain because key areas, such as services and trade-related intellectual property rights and investment measures, will become subject to a multilateral framework of rules and discipline.

"Improvements to dispute settlement procedures are particularly important to Hong Kong and other small economies which often lack the muscle to resolve differences with larger trading partners on a bilateral basis," he said.

The Financial Secretary said although the year did not start on a very optimistic note, the prospects for the world economy were better than they had been for many years.

Sir Hamish made it clear that the linked exchange rate was here to stay. He again stressed the importance to Hong Kong's stability and prosperity of the linked exchange rate, firmly supported by substantial reserves.

End/Wednesday, March 1, 1995

Three factors to fight inflation *****

The Financial Secretary, the Hon Sir Hamish Macleod, identified three factors to fight inflation which he forecast to be 8.5 per cent for 1995.

The factors are: fall in property prices, expansion of the workforce and rise in interest rates.

In his Budget Speech, Sir Hamish said: "Despite the welcome contributions from easier conditions in the property market and from higher interest rates, these will take time to have effect, and relatively high inflation will persist through 1995."

He assured the Legislative Council that the Government would continue to counter inflation as vigorously as possible and sensible in an open economy.

But further expansion of the economy does inevitably mean that the demand for land and labour will remain high in 1995.

- 6 -

"We cannot escape the unfortunate fact that, under Hong Kong's circumstances, pressure on prices is one of the less acceptable but continuing costs of our commitment to sustained growth," he pointed out.

On the property market, he said by the middle of January this year, the prices of existing residential properties had fallen by an average of 14 per cent from their peak in April 1994.

Whilst prices have moderated, they remain at levels which are historically high.

He said the package of measures introduced by the Government in June last year helped to make the market work more fairly and efficiently.

In the short term, the intention was to squeeze out the speculator, and it had largely succeeded.

In the long term, the Government will tackle the problem at its root by increasing the supply of flats, he said.

"Beyond this, however, we must leave the housing market to find its own equilibrium."

In terms of office accommodation, the prospects for the medium term are that a new equilibrium will emerge as additional supply becomes available from the redevelopment of existing sites in Central, from developments on the Central and Wanchai Reclamation and from sites along the Airport Railway.

Referring to criticisms about massive reclamation around the harbour, he said: "We have no intention whatsoever of reducing our magnificent harbour to a mere trickle.

"Nor do we have any intention of flooding the market with huge amounts of new land.

"As always, the timing of actual land sales will depend on market conditions. But we must put ourselves in a position where we can meet future demand," he said.

Sir Hamish added that the additional land would enable people living in congested areas to enjoy a better quality of life without having to uproot themselves from the urban area.

7

Turning to the second factor of a modest expansion of the workforce, he said without these increases over the last two years, inflationary pressures would have been even more intense as the economy continued to expand.

"The larger workforce should stand us in good stead in our efforts to contain inflation as the economy looks forward to another year of significant growth in 1995."

The workforce increased by 2.9 per cent in 1993 and by 3.5 per cent in 1994.

This is a helpful change compared with the marginal decline in 1992, he said.

Last year's increase of about 100,000 included a number of returning immigrants.

As to the rise on interest rates, the cost of borrowing has gone up, whilst savings have become more attractive.

He said both trends should help to contain inflation by reducing demand.

Inflation for 1995 is forecast to be 8.5 per cent, which Sir Hamish described as an uncomfortably high rate.

End/Wednesday, March 1, 1995

Keep Hong Kong competitive

* * * ♦ *

Hong Kong has to be kept competitive in order to ensure that its economic fundamentals continue to be good, the Financial Secretary, the Hon Sir Hamish Macleod, said in his Budget Speech today (Wednesday) in the Legislative Council.

Additionally, this can be achieved by relying on Hong Kong's traditional strengths and intervening only when necessary.

The Government put its faith in markets. "We believe in small government, and that it is the private sector which generates our wealth," Sir Hamish said.

"Nevertheless, small government does not mean no government.

*4

- 8 -

"A free market economy does not mean an economy completely free from regulation. It means an economy in which the Government knows its place.

"Small government should not be made an excuse for passive government," Sir Hamish added.

There are tasks and responsibilities which only a government can perform, he said.

"It is the Government which must provide the bulk of our social and economic infrastructure, the essential framework within which the private sector can work its wealth-creating magic.

"The Government must provide the leadership necessary to create this framework, and we have an obligation to do so as efficiently as possible, but in partnership with the private sector where that makes sense."

Sir Hamish said people were Hong Kong's greatest resource.

Education remains the largest single component of the Government's recurrent budget, he added.

"We are reducing class sizes, improving student/teacher ratios and upgrading the training and qualifications of teachers.

"Institutions funded by the University Grants Committee now offer 57,000 degree places and over 16,000 sub-degree places," he said.

Next year, the Vocational Training Council will spend $1.4 billion on training over 43,000 full-time and over 66,000 part-time students.

The Employee Retraining Board will have provided retraining for over 50,000 by the end of 1995-96.

Noting that wealth was created best in a safe city with social stability, Sir Hamish said that the Government was investing heavily in improving access to the courts and speeding up legal proceedings.

Investment in the physical infrastructure is also vital, he added.

9

Sir Hamish gave a few examples of how the Government was discharging its responsibility to create the modem facilities which Hong Kong needed, ’’wherever possible in close collaboration with the private sector”.

These are the new airport at Chek Lap Kok; a new transport network including the Western Harbour Crossing, West Kowloon Expressway, Route Three, Lantau Fixed Crossing and North Lantau Expressway; the container terminals and railway development.

The Financial Secretary said the Government also had a role to play in supporting technological development.

These are being done in the following areas:

A new Hong Kong Industrial Technology Centre where 70 per cent of its space has been let.

Increase in funds for technology development to $210 million.

The Government had a special obligation to provide a modem infrastructure to support its ’’burgeoning financial services sector”, Sir Hamish said.

"Hong Kong is probably unique in having its role as an international financial centre enshrined in its constitutional document.

"Article 109 of the Basic Law requires the future Special Administrative Region (SAR) Government to maintain Hong Kong's status as an international financial centre by providing an appropriate economic and legal environment."

The Government is already at work to maintain and improve that environment, he said.

"We are co-operating closely with the banking community to develop by 1996 one of the most modem real-time gross settlement systems in the world.

"We hope to have this linked up with similar systems in other major financial centres, as well as to the Chinese National Automated Payment System to allow payments arising from cross-border activities to be effected safely."

The debt market clearing and settlement systems are being upgraded, he added.

10

"The Central Moneymarkets Unit of the Hong Kong Monetary Authority now handles over 150 issues with an outstanding value of $90 billion.

"The Unit has established links with major international clearing systems to provide overseas investors with easy access to the Hong Kong debt market."

Bank supervision has been strengthened by introducing a new loan classification system and a more comprehensive regime for regulating liquidity, Sir Hamish said.

"A major priority for the year ahead will be to draw up further guidelines for financial derivatives to ensure better management of the risks associated with these products.

"We will also amend the Banking Ordinance to improve further the legal framework for banking supervision."

The banking sector has been brought into closer line with international practice by requiring the disclosure of more information, Sir Hamish said.

The Government will soon be consulting relevant bodies on detailed legislative proposals to streamline and rationalise the "fragmented legal framework" for the securities and futures markets, he said.

Other areas where work is also being done include improvement to the protection of insurance policy holders, undertaking of a comprehensive review of the insolvency legislation and reforms of the legal and administrative systems to protect intellectual property.

Sir Hamish said these examples illustrated "a very important point about the role of the Government".

"It does not generate the community’s wealth, but it does a great deal to ensure that we maintain an environment in which prosperity can be created and competition can flourish.

"Having provided the framework, it is then the Government’s duty to leave entrepreneurs and investors free to get on with the business of generating wealth.

"That this approach works is evident from our record of economic growth and from the praise which we have received from foreign observers."

End/Wednesday, March 1, 1995

11

Encouraging development of service sector

*****

The Government is considering a number of measures to ensure that Hong Kong will have enough hotel rooms to accommodate the rising number of tourists and business travellers.

Disclosing this today (Wednesday) in his Budget Speech, the Financial Secretary, the Hon Sir Hamish Macleod, said measures recommended by consultants included the relaxation of plot ratios and the release of new sites.

He said: "We shall be consulting closely with all those concerned before deciding on the way forward, but our aim will be the positive one of ensuring that this industry can go on growing without any unnecessary constraints or handicaps.

The Government has long been involved in the promotion of tourism - one of Hong Kong's most important service industries - through its financial support for the Hong Kong Tourist Association, the Financial Secretary said.

The Government had also provided a framework to encourage the development of the service sector, while its role in promoting trade in services has been relatively modest.

Sir Hamish added: "This is hardly surprising.

"When the Trade Development Council was established, our exports were dominated by trade in goods.

"However, given the growing potential for trade in services, I believe that there is now a case for a more balanced approach to overseas promotion."

Sir Hamish said the preliminary results of a consultancy study suggested there were several areas where carefully targeted promotion could help to reinforce Hong Kong's position as a world-class service centre for the Asia-Pacific region.

Over the next few months, the Government will be working with bodies such as the Coalition of Service Industries and the Trade Development Council to determine how best this should be done.

"I believe a new initiative in this area would be very worthwhile. We have very considerable expertise to sell," Sir Hamish said.

End/Wednesday, March 1, 1995

12

Budget strategy "clear and consistent" ♦ ♦ ♦ * ♦

The Financial Secretary, the Hon Sir Hamish Macleod, said the strategy for this year's Budget was "clear and consistent".

Delivering this year's Budget to the Legislative Council today (Wednesday), he said four principal components to this strategy had been adopted.

Sir Hamish said: "First, inevitably, is the need to control government expenditure so that, over time, it grows no faster than the economy as a whole.

"This means in practice that we cannot do everything we would like to do immediately. We have to set priorities annually, in an orderly and well thought through process.

"Secondly, to provide the funds for the programmes announced in the Governor's annual Policy Address and in the Policy Commitments.

"This means living up to past promises and refusing to undertake new commitments where these would be beyond our means.

"Thirdly, to maintain reserves adequate to provide a cushion against future contingencies.

"Especially during this transitional period, this means taking a highly prudent view of the volatility to which an economy as open as ours may be subject.

"Fourthly, to decide whether it is possible to reduce the burden on the taxpayer in the light of our overall economic and financial position."

Sir Hamish said a philosophy based on such an approach to the management of the public finances commanded wide support in the community.

He added that, however, striking the right balance between the individual elements of this strategy was not easy. "This is not a mechanical process," Sir Hamish said.

"Inevitably, then, there may be differences of opinion over how cautious a view we should take of our growth prospects and of future contingencies.

13

"There are equally likely to be differences over how far and how fast we can afford to respond to the community's demands for improved services and for improvement in infrastructure.

"Although the Government's overall budget strategy has been remarkably consistent over the years, the balance to be struck between its various elements inevitably alters from one year to the next, as our circumstances change," he said.

End/Wednesday, March 1, 1995

Comprehensive social security assistance being examined ♦ ♦ ♦ * ♦

The Financial Secretary, the Hon Sir Hamish Macleod, explained his decision in not dealing with the issue of the Comprehensive Social Security Assistance (CSSA) scheme in the Budget.

He said: "I am well aware of the view that we should, as soon as possible, make very significant increases in CSSA payments for the elderly."

Delivering the 1995/96 Budget in the Legislative Council today (Wednesday), he said a detailed examination of the CSSA scheme was being undertaken in a separate exercise.

"Figures like $2,300 or $2,500 have been mentioned.

"I would urge that we do not rush headlong into such a major decision. It is not just that it would involve a large and continuing recurrent expenditure commitment, though clearly that weighs on my mind too.

"The fact is that this Budget is not the place to deal with what is a large and complex issue."

Explaining further, Sir Hamish said the Government needed to know where the question of retirement schemes was headed.

He said: "Clearly, the implications of introducing a scheme providing pensions for all, as in our Old Age Pension Scheme proposal, are quite different from a more limited scheme providing protection only for the employed, as in the Mandatory Provident Fund proposal, which now seems to be emerging as the preferred choice.

14

’’Secondly, and more importantly perhaps, it is surely an unhelpful oversimplification to talk as if the only question to be resolved is the level of CSSA payments to the elderly.

"It is surely unhelpful, and indeed misleading, to assume that we only need to consider payments for the elderly, and that $2,300 or whatever, is the right level.

"We must recognise that it is the needs of all recipients, not just the elderly, that should be considered.

"After all, at other times, we have been told that we must give priority to the needs of the single parent, or of children.

"Surely other groups, not only the elderly, have a right to be considered too?

"Hence there is a genuine need to see the results of the household expenditure survey towards the end of the year, and in the light of those results to assess calmly and rationally the appropriate level of payments for all recipients, including the elderly.

"Thirdly, the timing is also impossible for this year's Budget.

"Members are well aware that expenditure decisions are taken well in advance of the Budget Speech, and that we cannot at the last minute find large recurrent sums."

Sir Hamish said the Government shared the underlying wish of the community and of many LegCo members to provide greater protection and support for the elderly.

"We wish to relieve the financial anxieties of old age. But we must do so in a manner which ensures that we consider other valid claims on our sympathy and on our inevitably limited resources," he said.

Sir Hamish said the Government must maintain the discipline of not letting expenditure grow faster than the economy.

"We therefore have to set priorities," he added, "and setting priorities means that if you give a high priority to one area you must give a lower priority to another area."

Sir Hamish added that since 1971, the standard rate for a single elderly person had increased by 23 times whereas inflation had increased by a mere six times over the same period.

End/Wednesday, March 1, 1995

15

The 1994-95 outturn ♦ ♦ ♦ ♦ ♦

Expenditure this year will be $165.8 billion, some $3.1 billion less than the original forecast - a difference of less than two percent, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday) ii^the Legislative Council.

Sir Hamish noted in his Budget Speech that underestimating surpluses had a long history in Hong Kong but this year’s was on target as the surplus for 1994-95 was in line with the original estimate of $7.7 billion.

"In overall terms, this outcome has arisen because modest underspending has been offset by equally modestly reduced revenue," he said.

Sir Hamish pointed out that some $2.0 billion of the underspending was due to reduced equity injections into the Provisional Airport Authority and MTRC as a result of the protracted negotiations on the airport financing package.

There had also been underspending of $3.5 billion from the Capital Works Reserve Fund because of delays in land resumption and slippage in capital works.

However, this was partly offset by the fact that expenditure from the Loan Fund would be $3.1 billion more than forecast, mainly because of loans granted to the Housing Society to meet the land premia due for sites under the Sandwich Class Housing Scheme (for which no provision was made in the original estimate).

The underspending of $3.5 billion from the Capital Works Reserve Fund was less than 11 per cent of the original estimate (excluding debt interest and repayment of $2.4 billion). In percentage terms, this level of underspending was a further continuation of the much improved performance achieved in 1993-94.

He said: "Members will recall the severe underspending which we experienced in 1991-92 and 1992-93 and the steps which we have taken to overcome this problem.

"Given the lead time required for major capital projects, it will be some time before we see the full impact of our remedial measures reflected in actual spending performance.

"Nevertheless, considerable progress has already been achieved."

Sir Hamish said expenditure in 1994-95 represented a growth of around 40 per cent in real terms over the level in 1991-92.

16

"Our forecasts assume that this progressive improvement will continue," he added.

Sir Hamish pointed out that revenue for this financial year was expected to be some $3.1 billion less than the original forecast, owing to main reasons set out as follows:

First, it was estimated that the share of revenue from land premia would be $3.4 billion less than originally forecast. While land prices generally had been in line with expectations, the disposal of a number of sites was deferred until the final quarter of the financial year. Because of the sharing arrangements with the future Special Administrative Region Government, the proceeds from land sold in the final quarter of 1994-95 would not be received until 1995-96.

Secondly, in the original estimate, the Government had anticipated recovering $2.7 billion from the Mass Transit Railway Corporation for works undertaken by the Government in connection with the airport railway. However, this had now been deferred to 1995-96 as a result of the delay in reaching agreement with China on the financing details.

* Thirdly, these shortfalls in revenue had been partially offset by higher than expected interest earnings of $1.6 billion on the fiscal reserves as a result of the rise in interest rates.

End/Wednesday, March 1, 1995

Draft expenditure estimates 1995-96 ♦ ♦ ♦ ♦ ♦

Total government expenditure (excluding payments from the Capital Investment Fund) in 1995-96 will amount to $169.7 billion, an increase of $23.7 billion over the original estimate for 1994-95.

This was announced by the Financial Secretary, the Hon Sir Hamish Macleod, in his Budget Speech delivered today (Wednesday) to the Legislative Council.

17

”In drawing up the estimates of expenditure, as I explained earlier when outlining my budget strategy, our first expenditure priority has been to provide funds to meet the targets announced by the Governor in his Policy Addresses to this Council and to implement the initiatives published by Branch Secretaries in their Policy Commitments in October 1994,” he said.

Sir Hamish then outlined some of the highlights of these extensive improvements.

* For the elderly, the Government would implement the recommendations of the Working Group on Care for the Elderly, involving both welfare and medical services. It would provide an extra 1,489 places in care and attention homes, an additional 23 social centres, four day care centres, three multi-service centres and two elderly health centres.

For children, the Government would provide an extra 1,400 day nursery places and 250 day creche places.

* For people with a disability, the Government would provide an extra 1,287 residential places, 1,008 day places and 471 pre-school places.

* For children and single parents, the standard Comprehensive Social Security Assistance payments would be increased from April 1 by $205 a month for children and by $200 a month for single parents. In addition, full-time students aged 19-21 would receive the standard rate for children instead of the standard rate for adults, giving them between $420 and $555 more a month. On top of these improvements, there would be the normal increases to compensate for inflation.

* For the sick, the Government would provide an extra 807 hospital beds, hospice care for an extra 400 patients a year, expanded dialysis facilities and improved care for sufferers from diabetes and heart disease.

End/Wednesday, March 1, 1995

18

Budget process explained * ♦ ♦ ♦ ♦

It is an essential feature of any administration which is both accountable and cost-conscious that its policies are carefully considered and that its programmes are meticulously planned, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday).

Delivering his Budget Speech in the Legislative Council, he pointed out that the 1994 Policy Commitments set out 337 new, fully-costed initiatives and these were in addition to the 221 specific undertakings announced in the 1992 and 1993 Policy Addresses.

"It would be surprising if the Government could come forward today, only six months after the last Policy Address, with a further list of major policy proposals.

’’This means that most of the new proposals which the Government wants to bring forward will be announced in the annual Policy Address,” Sir Hamish said.

End/Wednesday, March 1, 1995

New initiatives for 1995 spelt out ♦ ♦ ♦ ♦ ♦

The Financial Secretary, the Hon Sir Hamish Macleod, today (Wednesday) outlined some of the new spending initiatives in his Budget Speech.

He said in the Legislative Council that it might be possible to make resources available in the Budget for new spending initiatives as explained in the budget strategy to tackle pressing problems.

One of the new spending initiatives is for improvements in kindergarten education.

Sir Hamish said the Governor announced in his last year's Policy Address that the Government would raise the quality of kindergarten education by upgrading the training and qualifications of teachers and by requiring kindergartens to employ a minimum percentage of trained teachers.

19

"Thes; initiatives have been well-received. However, Members of this Council have been unanimous in arguing that teachers must be adequately paid if they are to have sufficient incentive to improve their qualifications.

"Members have therefore proposed more direct help to enable kindergartens to employ trained teachers.

"We are sympathetic to this proposal, and accept that improvements are clearly needed. We are looking urgently at how best to achieve this, and resources have been earmarked for this purpose," he said.

Apart from kindergarten education, Sir Hamish said the Government also recognised the need to look at the child care centre sector.

"My colleagues, the Secretary for Education and Manpower and the Secretary for Health and Welfare, are working together enthusiastically to produce early proposals on the best way forward in these two vital areas for our young children," he said.

On support for nurses, Sir Hamish said the Government would be able to implement further improvements in the training and role of nurses in addition to the measures announced in last year's Policy Address.

"We will increase the number of first-year first-degree places in nursing from 40 to 180 over three years; upgrade the qualifications of nursing tutors; ana employ more health care assistants to relieve nurses of their non-professional duties.

"These measures will help us to raise still further the quality of care in our hospitals and clinics," he said.

On health promotion, Sir Hamish noted that tobacco was the single most preventable cause of death and the Government would introduce further anti-smoking legislation.

*

In parallel with this, the Government will intensify health education and publicity by setting up a Health Care and Promotion Fund with an injection of $80 million.

This fund will be used for two purposes, to increase educational research and other activities to promote awareness of health issues.

20

Sir Hamish also suggested to provide financial1 assistance to the small number of patients every year who suffered from rare diseases which required medical treatment which was so specialised that it was not available in Hong Kong.

As for the purchase of welfare premises, Sir Hamish acknowledged that the Government was falling behind in its efforts to meet some key targets for social welfare and rehabilitation, mainly because of difficulties in finding sufficient premises.

"We have taken a fresh look at this problem and concluded that a workable solution is to buy premises in private developments. We will be seeking the approval of Finance Committee to spend about S2.5 billion on the purchase of premises over the next two years," he said.

<•

These premises will be used to accommodate, amongst other things, 20 day nurseries, 10 day creches, six multi-service centres for the elderly, 28 social centres for the elderly and 13 home help centres.

"As a result, and subject, of course, to Members' approval, we can now be more confident that we will be able to meet the key targets in these areas by 1997," he said.

For improving safety, Sir Hamish pointed out that the Secretary’ for Works had initiated a comprehensive review of the programme for improving the safety’ of slopes and retaining walls after the Kwun Lung Lau tragedy last July.

To speed up this programme, which involves over 10,000 sites, the Government will provide 130 additional staff for the Geotechnical Engineering Office and 30 additional staff for the Buildings Department.

Sir Hamish said: "This should allow us to complete the programme over the next five years, a full 10 years earlier than originally planned.

"We will also be appointing 34 extra staff in the Buildings Department to set up a permanent team dedicated to monitoring safety on construction and demolition sites.

"This will help us to minimise the risk of a repetition of the appalling accident that occurred last September at a Nathan Road construction site.”

- 21 -

Turning to the duplicate Tsing Yi South Bridge to cope with the growth in container traffic, Sir Hamish said the Government had decided to make preparations for the bridge to be built separately rather than waiting for the development of Container Terminal 9.

The Government will soon ask the Finance Committee for the approval of funding estimated at just over $1 billion, he said.

End/Wednesday, March 1, 1995

HK makes substantial improvement in social services ♦ ♦ ♦ ♦ ♦

Sustained economic growth and prudent management of public finances enable Hong Kong to make substantial real improvements in the social services, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday) in the Legislative Council.

Sir Hamish said in his Budget Speech that these improved services would bring real benefits to a high proportion of the community.

He noted that total public spending, including some of the new initiatives, would grow in real terms: on education by 5.5 per cent; on health by 7.7 per cent and on social welfare by 24.1 per cent.

”1 am happy to be able to reassure Members that despite these improvements, and despite our peak spending on the Airport Core Programme, we remain within our spending guidelines.

"We have continued to contain the growth in government expenditure over time in line with the growth in the economy, the first priority in my budget strategy," he said.

End/Wednesday, March 1, 1995

22

Revenue proposals to reward enterprise and promote equity ♦ ♦ ♦ ♦ *

In framing the revenue proposals this year, the Financial Secretary, the Hon Sir Hamish Macleod, said he had had very much in mind the principles of rewarding enterprise and promoting equity as in his last three Budget Speeches.

Speaking in the Legislative Council today (Wednesday), he noted that the benefits to the taxpayers of the reductions and reforms of the past three years had been very considerable.

’’Obviously, the scope for reform of our already very simple tax system is limited, as is the scope for further reductions if the revenue base is not to be unduly eroded.

"In addition, during the transition it is particularly desirable to keep our reserves at a healthy level.

"This has to be a key element in our budget strategy.

"My consultations with Members of this Council suggest that the community shares this judgment.

"I therefore believe that a cautious approach is justified in considering tax measures which would draw on the reserves.

"Nevertheless, I am still in a position to be able to recommend to this Council a number of useful tax concessions, whilst at the same time forecasting higher reserves.

"To put it the other way round, I am sure it is right that, having secured the funding of the Government’s programmes, both capital and recurrent, and having added significantly to the already substantial reserves, we should take any remaining opportunity to reduce the tax burden, especially on those with special needs," Sir Hamish said.

End/Wednesday, March 1, 1995

23

Tax concessions for those with special needs *****

The Financial Secretary, the Hon Sir Hamish Macleod, today (Wednesday) proposed in his Budget Speech to the Legislative Council salaries tax concessions for those with special needs and a 10 per cent tax cut for the majority of salaries taxpayers.

These improvements in tax concessions would reduce the tax burden of some 96 per cent of salaries taxpayers.

For those with special needs, Sir Hamish proposed:

to double the additional dependent parent and grandparent allowances, from $3,000 to $6,000, for those parents or grandparents living with the taxpayer.

* to increase the child allowance for the third to ninth child to $11,000. (The existing level of allowance ranges from $1,000 to $3,000.)

* to increase the single-parent allowance by 25 per cent, from $32,000 to $40,000.

* to introduce a new allowance of $11,000 for a disabled dependant, defined as someone who is eligible to claim an allowance under the Government's Disability Allowance Scheme. An estimated 30,000 taxpayers would benefit from this new concession. This allowance would be in addition to any allowance already being claimed by the taxpayer for the disabled family member in question.

And for the majority of salaries taxpayers, he proposed:

* to increase by 10 per cent the basic allowance, from $72,000 to $79,000.

* to increase by 10 per cent the married person's allowance, from

$144,000 to $158,000.

to increase the allowance for the first and second child by 10 per cent, from $20,000 to $22,000.

* to increase the basic dependent parent and grandparent allowances by 10 per cent, from $20,000 to $22,000.

24

Sir Hamish gave the following examples to illustrate the benefits of the proposed tax concessions to taxpayers.

A single-parent family with two children will have to eam more than $13,500 a month before paying any tax. At present, this family would be liable to pay tax when its earnings exceeded $12,000 a month.

* A single-income family of five, with two children and one disabled dependent parent or grandparent living with the family, will have to eam more than $20,000 a month before paying any tax. At present, this family would be liable to pay tax when its earnings exceeded $17,200 a month.

A single-income family of four with a monthly income of $ 18,000 will have its tax bill cut by some 81 per cent. It will pay less than $24 a month in tax.

* The typical sandwich-class family with monthly earnings of $22,000 will have its tax bill cut by 37 per cent. It will pay only $428 a month in tax.

The proposed concessions will take effect from the year of assessment starting on April 1, 1995.

Sir Hamish estimated that they would cost $1.2 billion in 1995-96 and $7.7 billion up to 1998-99.

End/Wednesday, March 1, 1995

No changes in corporate tax *****

The Financial Secretary, the Hon Sir Hamish Macleod, proposed in his Budget Speech today (Wednesday) no changes in the level of corporate tax.

However, he informed the Legislative Council that he would ask the Board of Inland Revenue to review one important aspect of the capital allowances which could be claimed against profits tax.

25

Sir Hamish said: "In addition to the generous initial allowance of 60 per cent -which should itself probably be reviewed on some future occasion - qualifying expenditure attracts an annual allowance of 10 per cent, 20 per cent or 30 per cent, depending on the type of plant and machinery involved.

"The categorisation into one of these three levels has a significant effect on the tax bill in any particular year.

"I will be asking the Board of Inland Revenue to review the classification of the items which fall into the three categories of annual allowance, to ensure it is fair and objective," he said.

End/Wednesday, March 1, 1995

Estate duty exemption level rises to $6 million * ♦ ♦ ♦ *

The Financial Secretary, the Hon Sir Hamish Macleod, proposed today (Wednesday) in his Budget Speech to raise the exemption level of estate duty from $5.5 million to $6 million to offset the effect of inflation.

Above that level, he proposed that estate duty be payable at 6 per cent on estates between $6 million and $7 million; 12 per cent for estates between $7 million and $8 million; and 18 per cent on estates over $8 million.

The cost of this proposal will be $20 million in 1995-96 and $100 million up to 1998-99.

End/Wednesday, March 1, 1995

26

Tobacco and fuel duties up eight per cent

*****

The Financial Secretary, the Hon Sir Hamish Macleod, proposed today (Wednesday) in his Budget Speech in the Legislative Council to raise tobacco and fuel duties by eight per cent to keep pace with inflation.

Sir Hamish noted that revenue from tobacco duty decreased substantially in 1993-94 because of increased smuggling of cigarettes and decided last year to maintain duty rates at their existing levels so as not to aggravate the problem of smuggling.

"I also promised to step up our efforts to tackle the tobacco smugglers by setting up a 40-strong task force in the Customs and Excise Department," he said.

Since its establishment in April last year, the task force has proved extremely effective in tackling the problem.

Revenue from duty-paid cigarettes had increased by 28 per cent in the first nine months of this financial year.

Reports indicate that the black market price of cigarettes has also increased markedly.

"This is a very welcome improvement. We will continue to tackle the smugglers through targeted investigations and intelligence gathering.

"Nevertheless, given the substantially improved situation, I consider that an inflation-related adjustment in the duty rate is now needed to preserve the deterrent effect of this tax," he said.

On fuel tax, Sir Hamish proposed to increase the duty on petrol and hydrocarbon oils by 8 per cent to keep pace with inflation.

The proposed increases in fuel duty and tobacco duty come into effect under a Public Revenue Protection Order issued today.

End/Wednesday, March 1, 1995

27

No changes in alcohol duty *****

The simple ad valorem duty system introduced last year to achieve greater equity between imported and locally manufactured alcohol products, and between high and low value products of the same category had been generally successful.

This was stated by the Financial Secretary, the Hon Sir Hamish Macleod, today (Wednesday) in the Legislative Council.

"The ordinary consumer has benefited considerably from the effects of greater competition at the lower end of the market, with greater choice and cheaper products now available.

"Such are the benefits of an ad valorem system. 1 do not propose therefore any change in the basic system," he said.

As for a proposal to apply a "cap" to the duty payable on the more expensive products, Sir Hamish said he was not entirely lacking in sympathy with this suggestion, given that at the higher end, the duty had undoubtedly increased.

"But whilst my heart, and my palate, urge sympathy, my intellect tells me to make no such change.

"These are early days to assess fully the impact of the system, but there is no evidence yet to suggest that the new system has resulted in reduced revenue yields at this upper end of the market, though there has been a drop in dutiable quantities.

"To apply a cap would also undermine the logic of the new system which is based on the simple principle of vertical equity.

"I have had to conclude that such a cap is not justified. But we will undertake to review the situation again in the light of revenue yields over a longer period," he said.

End/Wednesday. March 1. 1995

28

Stepping up tax enforcement ♦ * * * *

An additional field audit team would be established to step up the campaign on tax evasion, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday) in the Legislative Council.

This would bring the total to eight teams. In addition, new legislation would be introduced to fight tax avoidance and evasion.

In his Budget Speech, Sir Hamish noted that the Inland Revenue Department's investigation and field audit staff have tackled over 3,500 cases and obtained more than $2.7 billion in back tax and penalties in the past three years.

Sir Hamish said he found the findings of a recent Inland Revenue Department Survey of the problem of substantial under-reporting of income by some professionals were alarming and the situation unacceptable.

Of the 4,500 businesses surveyed, it was found that 60 per cent did not issue receipts or only issued them on request; only 45 per cent kept a full set of books and accounts; and 40 per cent did not keep sufficient records to enable their taxable profits to be readily ascertained.

He said: "Clearly, we cannot rely on self-regulation alone.

"1 propose, therefore, to bring forward legislation to specify clearly the minimum records which a business must keep, and to increase the maximum fine for non-compliance.

"In simple terms, a business will be required to keep the records necessary to enable all business transactions to be traced, explained and verified through the accounting system.

"I hope that these new measures will reduce the temptation by some to underreport their business income.

"For those still unable to resist temptation, these measures will help the tax inspector to detect evasion more effectively.

"And. if even this still does not produce the desired results, we will need to go one step further and legislate also to make the issue of receipts mandatory."

29

Turning to tax avoidance, Sir Hamish announced the Government's intention to remedy by legislation the increasingly widespread use of service companies to avoid or to significantly reduce tax liability.

There are two types of case that are of special concern. The first amounts to an attempt to disguise what is, in substance, an employer-employee relationship.

The second involves the payment of inflated management fees by a firm to a service company that is controlled by the firm's proprietor or its partners.

Following consultations with LegCo members and professionals, the Government had now modified its proposals in a way which would achieve the basic objectives while meeting the concerns raised about the equity and effectiveness of the original approach.

"In brief. I now propose to deal with the first type of case by legislation but to deal with the second type by a Practice Note which will be issued by the Commissioner of Inland Revenue.

"We aim to introduce the legislation into this Council and to issue the Practice Note by the end of this month.

"I hope that this pragmatic compromise will meet with Members' approval," Sir Hamish said.

End/Wednesday. March 1. 1995

Small deficit for 1995-96

*****

The Financial Secretary, the Hon Sir Hamish Macleod. envisaged in the Legislative Council today (Wednesday) a "very small deficit" of $2.6 billion in 1995-96.

"This is equal to less than 2 per cent of government expenditure. Compared with a surplus of $7.7 billion in 1994-95, it is mildly expansionary," Sir Hamish said.

He said an overall surplus would be returned from 1996-97 onwards, a year earlier than previously forecast.

30

"Only in the coming financial year, when our investment in the Airport Core Programme peaks, will it be necessary to draw on our reserves, and even then to a much smaller extent than previously expected," he said.

"We shall continue to see a healthy surplus on our operating account throughout the forecast period."

Sir Hamish said there were two main reasons for this improvement in the financial prospects compared with the earlier forecast.

"First, rising interest rates add to the earnings which our fiscal reserves generate.

"Secondly, on the expenditure side, the forecast reflects a more realistic assessment of our capacity to increase spending on public works.

"Thus, we are now assuming a level of spending below that predicted in the previous Medium Range Forecast," he said.

Sir Hamish also explained that the forecast was based on two assumptions: GDP growth would maintain at 5 per cent and a conservative approach to the forecasts of revenue from land premia.

End/Wednesday, March 1, 1995

Reserves in 1997

*****

The Government's fiscal reserves on March 31, 1997, shortly before the transfer of sovereignty, will stand at an impressive $151 billion, the financial Secretary, the Hon Sir Hamish Macleod, said in the Legislative Council today (Wednesday).

"This is a ver}' reassuring cushion, and some $31 billion more than I was forecasting a year ago."

Sir Hamish noted that the future Special Administrative Region (SAR) Government would receive the full proceeds from land sales, and would collect rents from the extension of New Territories leases from July 1. 1997.

31

The Medium Range Forecast shows a surplus of $33 billion in both 1997-98 and 1998-99, the Financial Secretary said.

After taking full account of the SAR Government Land Fund, the Medium Range Forecast predicts total reserves at March 31, 1999 of $361 billion.

This represents about 1.4 times total government expenditure forecast for 1998-99.

"I believe that this would be the highest ratio of reserves to spending achieved in the history of Hong Kong," Sir Hamish said.

End/Wednesday, March 1, 1995

Consultations with China on 1997-98 Budget

*****

To prepare for the 1997-98 Budget, the Government has proposed a four-stage programme of briefings for a designated team of experts on how Hong Kong manages its public finances, the Financial Secretary, the Hon Sir Hamish Macleod, said in the Legislative Council today (Wednesday).

The four-stage programme is:

* First, a general background briefing on the Government's fiscal and budgetary systems has been offered.

* Secondly, a series of seminars would explain in more detail the key elements of the Government's budgetary system and procedures, such as the Medium Range Forecast, the annual Resource Allocation Exercise, the draft Estimates and revenue policy.

* Thirdly, this expert team will be invited to observe each stage of the planning and preparation process for the 1996-97 Budget. This will enable Finance Branch to explain every aspect of the budgetary process.

* Fourthly, starting from April 1996, the Hong Kong Government would consult the Chinese Government over the contents of the 1997-98

Budget.

32

"We hope that our Chinese colleagues will find this a constructive approach and that our subsequent exchanges will be a major contribution to a smooth and stable transition in 1997," Sir Hamish said.

Sir Hamish added that in order to fulfil the Governor's pledge to co-operate fully with the Chinese Government over the transfer of assets to the Special Administrative Region Government and over the preparation of the 1997-98 Budget, the Government had handed over to the Chinese Government a list of property assets owned by the Hong Kong Government.

He said it was a formidable document, covering everything from schools to police stations.

The inventory will be updated regularly.

End/Wednesday. March 1, 1995

Prudent in public spending

*****

In concluding his Budget Speech, the Financial Secretary, the Hon Sir Hamish Macleod, summed up the Government's fiscal policy in a Chinese saying: "The way to make a country prosperous is to be prudent in public spending, to improve the wellbeing of the people and to maintain good reserves".

Sir Hamish said: "As long as we continue to abide by the principles encapsulated in this quotation, I am confident that Hong Kong will enjoy many more years of growth and prosperity."

Sir Hamish recalled that when he was first appointed Financial Secretary in 1991. many believed that the elections that year which gave Hong Kong, for the first time in its history, a LegCo with an elected majority, would force the traditional consensus on economic policy and priorities go.

"In fact, we have clearly not paid an economic penalty for constitutional reform.

"On the contrary, our economic success has continued, as has the broad political consensus on how to manage our publie finances.

33

"We have good reason as a community to be proud of what we have achieved, and to be self-confident about our ability to deal with the challenges of the future."

Citing achievements in the area of public finance since 1991, the Financial Secretary noted that taxation had been reduced for almost every salaried employee; dramatic improvements had been made in public services, and yet public spending had been kept firmly under control, at less than 20 per cent of GDP; and $46 billion had been added to the Government's reserves.

End/Wednesday, March 1, 1995

TV broadcast by the FS *****

Following is the speech by the Financial Secretary, Sir Hamish Macleod, at tonight’s (Wednesday) TV broadcast:

Good evening.

This afternoon I presented my fourth and last Budget to the Legislative Council. When I began working on this Budget, I asked myself the same question that I asked when 1 prepared my first Budget. What can 1 do to help keep Hong Kong successful, stable and prosperous?

The Government cannot create prosperity, but it can ensure that business has the freedom and the opportunity to generate the wealth that Hong Kong needs. Government also has an important role to play in providing the infrastructure that enables our economy to expand. The Airport Core Programme is the most spectacular example of the investment that we are making in Hong Kong’s infrastructure. But it is only one of many projects designed to ensure that I long Kong can continue to prosper in the years ahead.

We also have important social responsibilities to fulfil. For example, to provide education and training for our children. To maintain law and order. To provide subsidised housing for those who cannot afford private housing. And to look after the sick, the disadvantaged and the disabled.

In Hong Kong, 1 do not think there is any serious disagreement about these fundamental policies. That is why I have called my Budget "Prosperity through Consensus".

34

Some have expressed doubts about our future prosperity. They worry that the decline in retail spending and in stock and property prices is a signal that the economy is heading for trouble.

But I see no reason to be pessimistic. The economic prospects for our major trading partners are better than they have been for some years. The OECD has forecast that the economies of the United States and the European Union will grow by 3% this year. And then there is the continued growth of the Chinese economy. The growth rate in China this year may not be as dramatic as in previous years but it is still likely to be very high by international standards. All this will increase the demand for our goods and services, particularly our services which are now the backbone of our economy.

I have taken a realistic approach to our economic prospects. 1 have not ignored the uncertainties on the horizon or the problems that could affect us. But, at the same time, I have not exaggerated the difficulties. I expect our economy to grow by 5.5% in 1995. What that means in practice is that we can look forward to another year of low unemployment, rising real incomes and higher living standards.

We have seen some progress in the battle against inflation. The measures we introduced last year to deter property speculators helped to reduce residential prices. Higher interest rates have also helped to contain inflation. But, as I have said many times before, we must face the fact that, as long as our economy continues to grow, the pressure on prices will remain. This is why I expect to see little change in inflation in 1995.

Our continued economic growth means that we can afford to make further improvements in the quality of our public services. For example, in the coming financial year, we will increase total public spending on education by 5.5%, on health by 7.7% and on social welfare by 24.1%. These will be real increases, over and above inflation.

These additional funds will allow us to implement the 337 proposals announced in last year's Policy Address, including real increases in social security payments for single parents and children, over 800 new hospital beds and almost 1,500 new places for the elderly in care and attention homes. I have also been able to announce some new initiatives. We will start preparing for the construction of the Duplicate Tsing Yi South Bridge to relieve the traffic congestion on Tsing Yi. We will also be spending about S2.5 billion to buy premises for welfare services which will help us to meet the key targets set by the Governor in his 1992 Policy Address.

35

One problem I have not been able to resolve in this Budget is retirement protection for the elderly. Our proposal for an old age pension did not receive sufficient support, and so we have to think again. But let me assure you that, one way or another, we will do all we can to solve this problem.

Over the last three years, the healthy state of our finances has allowed me to introduce tax concessions that have eased the burden on practically every tax payer. The proportion of the workforce paying no salaries tax has gone up from 49% to 62%. The proportion of the workforce paying salaries tax at the standard rate has gone down from 5% to 2%. These are very substantial improvements.

Obviously we cannot be so generous every year. As always, we have to think of the future, and be mindful of the risks facing an economy as open as ours. We need an adequate cushion to protect us against future uncertainties. Nonetheless, the underlying strength of our finances means that we can afford to make some further tax concessions.

This afternoon, I have proposed to increase most personal allowances by 10%, slightly more than the rate of inflation. I have also proposed a number of concessions for those who have special needs. I have proposed a 25% increase in the single parent allowance; a doubling of the allowance for a dependent parent or grandparent living with the taxpayer; and the introduction of a new allowance for disabled dependants.

My proposals will mean that 96% of taxpayers will pay less tax in future. To give you just one example. A typical sandwich class family with a monthly income of $22,000 will have its tax bill cut by 37%.

For the coming financial year, I expect a small deficit of $2.6 billion, largely because our expenditure on the Airport Core Programme will peak during this period. Despite this deficit I expect our reserves in future years to be even stronger than previously forecast. I now estimate that the reserves at 31 March 1997 will stand at $151 billion. The new SAR government will have a very reassuring cushion with which to face the future.

I have not proposed any drastic or dramatic changes in this Budget. I make no apologies for that. The advice I received in my consultations with Members of LegCo suggested that what the community wanted at this time of transition was a steady and cautious Budget. And that is what I have delivered.

36

Hong Kong has succeeded precisely because its policies have been stable and consistent. These policies are summed up in the quotation that appears on the cover of my Budget Speech. It is a quotation taken from a work written by a Chinese scholar -Xunzi - over two thousand years ago. It reads -

"The way to make a country prosperous is to be prudent in public spending, to improve the well-being of the people and to maintain good reserves."

I am sure that my successor will maintain these policies, and that, like me, he will do his best for the people of Hong Kong.

Good night.

End/Wednesday, March 1, 1995

Putonghua as school subject ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question :

With regard to the development of education to meet the needs of the territory during the transitional period, will the Government inform this Council:

(a) of the respective numbers of primary and secondary schools with Putonghua designated as a compulsory or optional subject in the 1994-95 academic year, and their respective percentages out of the total numbers of primary and secondary schools in the territory;

(b) whether it will consider including Putonghua as a compulsory subject in the curricula of the territory’s primary and secondary schools; if not, what the reasons are;

(c) of the total number of qualified Putonghua teachers in the 1994-95 academic year, and whether this number can meet the present demand of teachers for this subject; and

37

(d) how many teachers the Hong Kong Institute of Education plans to train in the teaching of Putonghua in each of the next three academic years?

Reply :

Mr President,

(a) The numbers of primary and secondary schools offering Putonghua as a subject in their curriculum in the academic year 1994-95, and their respective percentages out of the total number of primary and secondary schools in the territory are as follows :

Number offering As a percentage Level Putonghua ofthe total

Secondary schools 173 38.3%

Primary schools 446 46.7%

(b) The Curriculum Development Council recommended that Putonghua should be offered as an optional subject in the school curriculum taking into consideration the time constraint in the existing curriculum and the availability of suitable Putonghua teachers. The Education Department considers such advice realistic as it allows schools greater flexibility to offer a curriculum more suited to their own circumstances.

(c) There is no formal qualification prescribed for teachers of Putonghua. The Education Department offers special training programmes for Putonghua teachers. Up to December 1994, 3377 serving teachers have been trained under these programmes. It is difficult to assess whether this number is sufficient to meet the demand as it is expected that more schools will want to offer Putonghua as a subject. Nevertheless, the Education Department is prepared to expand its on-going training programmes if there is any unmet demand.

(d) The Hong Kong Institute of Education plans to train the following number of pre-service and in-service teachers in 1995-98 :

38

Teachers expected to be trained

1995/96 1996/27. 1997/98

Putonghua as an elective 71 91 96

subject in Pre-Service

Certificate in

Education Course

In-service Courses 790 790 790

for Putonghua

Teachers

End/Wednesday, March 1, 1995

Robberies in elevators

*****

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question :

Following several incidents in which robbers appeared from elevator shafts in Tuen Mun in 1993, there were indications that this type of robberies had become active in Sha Tin last year. Will the Government inform this Council

(a) of the number of such cases which had occurred in the territory in the past two years;

(b) what measures the authorities concerned have adopted to prevent such cases from occurring; whether the recurrence of similar cases indicates that the measures taken have been ineffective; and

(c) how the recurrence of such cases can be prevented in the future, so as to safeguard the life and property of the public?

39

Reply :

Mr President,

(a) We have not kept specific statistics on lift shaft robberies on a territorywide basis. However, we believe that the number of such cases is very small in comparison with the number of robberies occuring in lifts, which was 1,219 in 1993 and 1,221 in 1994.

(b) The Police have adopted specific measures to tackle the occurrence of lift shaft robberies in consultation with the Housing Department and the Fire Services Department. In public housing estates, the lift compartments were sealed by way of a "spot-welding" method to prevent access from the trap door of the lift-car. The Police have also set up observation posts in the proximity of the plant areas in identified blackspots to closely monitor the situation. In so far as occurrence of such incidents in public housing estates in the new towns is concerned, we are aware that 8 cases were reported in Tuen Mun in 1993 but none in 1994; and none reported in Shatin in 1993 but 3 cases in 1994. There is no indication that this kind of robberies is on the rise or prevalent in the territory.

(c) The Police have taken steps to tackle such robberies at two levels. At the district level, the district intelligence units scrutinise crime reports to identify emerging crime techniques and specific culprits active in particular areas. This approach offers the greatest flexibility in dealing with a crime which is carried out by a relatively small number of individuals, operating in localised areas most familiar to them.

At the headquarters level, the Crime Prevention Bureau of the Police Headquarters maintains close liaison with the Housing Department to advise on the provision of safety features in lift designs. Since November 1994, the Housing Department has also launched a major programme to upgrade the provision of security measures for all public housing estates. This includes the installation of close circuit televisions (CCTV) in the lift cars of all rental blocks which are linked to a control room for central monitoring. The system also permits residents to monitor any of the lifts in his block through a television set. Apart from the installation of CCTV's inside lifts, the Housing Department has also installed entrance gates with security-coded access and 24-hour towerguard service in some of the estates. Patrol by estate officers is also provided as necessary. The proposed package to upgrade the security in public housing estates and other preventive measures adopted by the Police will help combat robbery cases occurring inside lifts.

End/Wednesday, March 1, 1995

40

Building of primary schools ♦ ♦ ♦ ♦ ♦

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:

In 1993 and 1994, the Education Department surrendered 14 sites reserved for building primary schools mainly for the reason that those sites did not meet the proposed area requirement. In this regard, will the Government inform this Council whether it will consider utilising 25 existing sites reserved for primary schools, which also fail to meet the area requirement, with some flexibility so that a certain number of whole-day primary schools with a smaller capacity than the proposed ones (e.g. with accommodation for 12 classes only) can be built to provide different types of schools for students to choose from on the one hand, and to attain the target of providing whole-day primary schooling as soon as possible on the other?

Reply:

Mr President,

Our present policy is to build standard primary schools with 30 classrooms because they are generally more cost-effective and efficient in providing more school places to meet the demand. However, the Government is prepared to be flexible to build small size schools in special circumstances, for example, in areas where there is a persistent shortfall of school places and the extent of such a shortfall is not large enough to warrant the building of a standard school. The Education Department will continue to consider making the best use of the reserved sites.

As to the whole-day primary schools, all new primary schools are planned to operate on a whole day basis and existing primary schools will be converted to whole day operation insofar as this will not adversely affect the supply of school places. This is being implemented.

End/Wednesday, March 1, 1995

41

Two-way permit holders working in HK ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Emily Lau Wai- hing and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

In view of the complaints about the serious situation of visitors on Two-way Permits from mainland China who are found working during their period of stay in the territory, will the Government inform this Council:

(a) whether Chinese visitors holding Two-way Permits are allowed to work in the territory; and

(b) if the answer to (a) is in the negative, whether any such visitors were caught by the Government for breaching the relevant provisions last year; if so, what the number was and what was the proportion of those caught to the total number of Two-way Permit holders visiting the territory; and whether these offenders will be prosecuted and prohibited from visiting the territory again within a certain period of time?

Reply:

Mr President,

(a) Chinese visitors on Two-way Permits are not permitted to work in Hong

Kong.

(b) Last year, some 27,250 or 5% of the total number of Two-way Permit holders had overstayed, and 1,730 (or 0.3% of the total) were arrested for engaging in unauthorised work. A total of 6,720 Two- way Permit visitors were also prosecuted for overstaying. Of those arrested for taking up unauthorised employment, 1,684 were also prosecuted. Blatant offenders will be scrutinised on their future visits and may be refused entry.

End/Wednesday, March 1, 1995

42

Measures to reduce congestion at airport arrivals hall

*****

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question :

As private cars are not allowed to park temporarily on the road outside the arrival area of the Hong Kong International Airport for picking up or setting down passengers, arriving travellers requiring pick-up by private cars have to push their large luggage trolleys to the lift lobby in the arrival area and take the lift to get to the car park on the second floor or above, thus causing heavy congestion in the lift lobby area. In view of this, will the Government inform this Council whether :

(a) escalators or passenger conveyors will be installed for the exclusive use of arriving travellers not using luggage trolleys to enable them to get to the car park more quickly;

(b) ramps for passengers and luggage trolleys will be built to link up the car park with the arrival area;

(c) luggage couriers will be employed to handle the travellers' luggage centrally and to make deliveries to various floors of the car park as requested by the travellers; and

(d) there are any plans to implement other improvement measures; if so, what the details are and when they will be implemented?

Answer:

(a) In order to reduce the congestion in the Arrivals Hall caused by arriving passengers with baggage trolleys queuing for lifts to go the multi-storey car park, we encourage those passengers with light baggage to make use of the external escalators. There are directional signs installed to guide passengers to these escalators which operate between the arrivals level and the third floor of the Passenger Terminal Building, where they can cross over by bridge to the car park.

43

(b) A preliminary assessment by the Director of Architectural Services indicates that construction of a ramp connecting the Arrivals Hall to the car park area is technically possible. However, it is anticipated that the project would take six to eight months for completion and would require substantial demolition works at the western end of the Passenger Terminal Building and the possible relocation of certain existing facilities. Given the time frame for implementation and the significant disruption which would occur during the construction period, the proposal is not considered a viable option.

(c) The Civil Aviation Department has conducted trials involving luggage couriers to transfer passengers’ baggage from the arrivals level to the third floor of the carpark, using the external escalators. The trials indicated that the placement and transfer of baggage onto the escalator was very labour intensive. As an alternative, the Department is considering the possibility of providing suitable self-help baggage trolleys which could be wheeled directly onto the escalator by the passengers themselves. An officer from the Department will shortly be visiting a number of airports which have similar arrangements to explore this option in further detail and a selection of trolleys will be acquired for further testing and evaluation at Kai Tak.

(d) As regards other improvement measures, arrangements have been put in place to assign additional Securair staff to the Arrivals Hall during the evening peak period from 6-11 pm to regulate passenger flow. There are also plans to implement other improvement measures, on a phased basis, which will be completed by the end of this year. These include :

(i) the relocation of the existing lift doors and realignment of the passenger exit ramps within the Arrivals Hall so as to segregate the lift users and greeters, thus reducing congestion around the lifts; and

(ii) the creation of additional waiting areas for greeters by relocating the Neighbourhood Police Office and concessions.

End/Wednesday, March 1, 1995

44

Staffing of Agriculture and Fisheries Department

*****

Following is a question by the Hon Mrs Peggy Lam and a written reply the the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

According to available information, the number of officers in the rank of Field Officer II currently employed by the Agriculture and Fisheries Department (AFD) is below the approved staffing establishment. Will the Government inform this Council:

(a) of the approved staffing establishment and the existing number of vacancies in the rank;

(b) whether the AFD has deployed any staff to monitor the operation of pet shops and snake shops on a regular basis; if so, how staff are deployed to fulfil all inspection duties when the AFD is experiencing a shortage of staff; and

(c) how snake shops are monitored to ensure that appropriate measures are adopted by these shops to prevent snakes from sneaking out of shop premises and causing nuisance to the residents nearby?

Reply:

(a) There are 152 posts of Field Officer II on the establishment of the Agriculture & Fisheries Department, of which 24 are vacant at present.

(b) The Department has deployed nine Field Officer II posts on the monitoring of licensed animal trading establishments, including pet shops and snake shops. These establishments are visited twice a month to check that health and safety regulations are being complied with. Should there be a shortage of staff to perform this work, temporary redeployment of Field Officers II from other parts of the Department will be arranged as necessary.

45

(c) It is an offence to carry on a business as an animal trader without a licence. In the case of snake traders, it is a requirement of the licence that the premises are suitable for keeping snakes and that the enclosures to be used are escape-proof. A breach of this requirement is a criminal offence. Before a licence is granted, the premises are inspected by a Veterinary Officer of the Agricultural and Fisheries Department. Thereafter, they are subject to regular inspections which ensure that the enclosures are escape-proof and maintained to the required standard.

End/Wednesday, March 1, 1995

Cases handled by Minor Employment Claims Adjudication Board ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Pang Chun-hoi and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question :

It is learnt that the Minor Employment Claims Adjudication Board intends to clear 700 cases transferred by the Labour Tribunal in six months' time, which means that each of the five adjudication officers on average handles only one case per day. Will the Government inform this Council of the reasons for the slow progress of processing these cases?

Reply :

Mr President,

In addition to cases redirected by the Labour Tribunal, the Minor Employment Claims Adjudication Board is also taking on new cases referred to it by the Labour Relations Service. The Board has so far registered 313 cases involving a total amount of $1,041,081. Among these cases, 175 were redirected from the Labour Tribunal and 138 were new ones referred by the Labour Relations Service. It is expected that the Board will be able to hear 400 to 500 new cases and clear all the cases transferred from the Labour Tribunal by end of May this year.

End/Wednesday, March 1, 1995

46

Odour from nullah at Tsui Ping Road * * ♦ ♦ ♦

Following is a question by the Hon Fred Li Wah-ming and a reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question :

Regarding the unpleasant smell emitted constantly from the surface nullah in Tsui Ping Road in Kwun Tong which has caused a serious nuisance to workers working in factories nearby as well as the residents of Laguna City, will the Government inform this Council:

(a) whether there is any plan to cover up the nullah; if so, what the details are; if not, why not; and

(b) what short-term measures are in place to improve the present condition of the smelly nullah?

Reply :

Mr President,

(a) There is currently no plan to deck the nullah which is designed to convey stormwater to the sea, and is not meant for polluted wastewater. Decking the nullah would not eradicate the odour problem. The only effective solutions are to control the pollution at source and to divert the wastewater discharges away from the nullah and into foul sewers. The odour from the nullah at Tsui Ping Road arises mainly from domestic and commercial wastewater discharges from Sau Mau Ping and Tsui Ping Estates, which are brought to the nullah through expedient connection of foul sewage. There are also discharges of industrial effluents from Kwun Tong industrial area into that part of the nullah which is adjacent to the Laguna City. The Tsui Ping Road nullah, like other open nullahs, is an essential hydraulic structure for discharging stormwater during rainstorms. Regular inspection and desilting can be conducted more effectively and economically in an open nullah than in a decked nullah. Decking an open nullah is a costly civil engineering exercise which makes it difficult to enter the nullahs and carry out desilting work with mobile plant. More importantly decking could make the situation worse because it will lead to the retention of hydrogen sulphide, the main cause of the bad odour and a gas which is potentially dangerous to the public and maintenance staff, and corrosive to the structure. Also, in busy urban areas, decking nullahs involves much disturbance to the neighbourhood.

47

(b) Regular inspection and desilting are carried out by the Drainage Services Department to ensure that the Tsui Ping Road nullah is hydraulically effective and to maintain an acceptable hygienic standard. The last cleansing work was completed in November 1994. Since the Kwun Tong area is covered by the Victoria Harbour (Phase I) Water Control Zone, all discharges in the area will be controlled through the enforcement of the Water Pollution Control Ordinance from 1 July 1995. Sewerage improvement works are also being implemented by the Drainage Services Department under the East Kowloon Sewerage Master Plan programme. The domestic and commercial discharges into the Tsui Ping Road nullah are expected to be diverted away from the nullah by mid 1996 and the industrial discharges near Laguna City by mid 1997.

End/Wednesday, March 1, 1995

Non-local Higher and Professional Education (Regulation) Bill ♦ ♦ ♦ ♦ *

Following is a question by the Hon Henry Tang Ying-yen and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

In the annex to the Chief Secretary’s written reply of 14 December 1994 to a question concerning the items of legislation the Government plans to introduce into this Council in 1994/95, there is one item concerning the monitoring of the provision of courses provided in the territory by non- local institutions of higher education and professional bodies. In this connection, will the Government inform this Council :-

(a) of the progress of the drafting of the relevant bill; when it is expected to be introduced into this Council for scrutiny; and

(b) whether the bill will ensure that courses provided by such institutions and professional bodies are up to the standard required; and whether the bill will require the setting up of a mechanism to monitor the operation of local education institutions acting as agents of such courses, so as to ensure that information provided by these institutions on the courses offered, including those qualifications awarded, recognition enjoyed, course duration and fees, etc, is accurate?

48

Reply:

Mr President,

(a) The Administration is working on the fourth draft of the English text of the Non-local Higher and Professional Education (Regulation) Bill. It is still our aim to introduce the Bill into the Legislative Council within the current legislative session.

(b) The objective of the new regulatory framework is to ensure that the standards of the courses conducted by the non-local institutions of higher education and professional bodies in Hong Kong are recognised by the non- local institutions themselves and the accrediting authorities in their countries of origin, and that the standard of overseas courses delivered in Hong Kong would be monitored effectively to maintain them at a level comparable to those achieved on-campus in their countries of origin. Subject to verification of the information provided by the executive head of a local tertiary institution, those overseas courses offered in collaboration with a local tertiary institution would be exempt from registration. Registration of courses within the scope of the Bill, however, would be subject to verification of the information by the Hong Kong Council for Academic Accreditation. Subject to further legal advice Government is also considering the inclusion of provisions to prohibit irresponsible operators or agents acting on their behalf from publishing or broadcasting false or misleading information about their courses.

End/Wednesday, March 1, 1995

49

Safety of dangerous goods

* ♦ ♦ » ♦

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

The explosion of a goods vehicle carrying LPG cylinders in Tsing Hang Path, Tuen Mun, in 1992 aroused public concern about the safety of dangerous goods vehicles, and immediate action was taken by the authorities concerned to prevent similar incidents from occurring. In this connection, will the Government inform this Council:

(a) what actions and measures have been adopted during the past two years to prevent the occurrence of similar incidents; and whether such actions and measures have been effective;

(b) of the number of prosecutions against the illegal parking of dangerous goods vehicles since the explosion, together with the highest and lowest penalties imposed in the convicted cases; and

(c) which sites can be used to provide parking spaces for dangerous goods vehicles; and whether the provision of such sites is adequate to meet the demand, and if not, whether additional sites have been planned and when they will be made available for use?

Reply:

The incident at Tuen Mun on 30 September 1992 involved two parked goods vehicles permitted to carry both LPG cylinders and kerosene. The kerosene on the vehicles was ignited in suspicious circumstances, engulfing the LPG cylinders and causing them to explode.

In the past two years, the Gas Authority has taken a number of measures to reduce the risk of similar incidents occurring, including prohibiting the joint conveyance of LPG and kerosene, stepping up enforcement against illegal parking of LPG cylinder wagons and looking for sites away from built-up areas where LPG cylinder wagons could be parked safely overnight. Specifically:

50

The Gas Authority has prohibited the joint conveyance of LPG and kerosene through amendments to the permit conditions for LPG cylinder wagons. These amendments have been phased in so as to allow the industry a reasonable time to comply with the new arrangements, with full implementation achieved in November 1993. The new arrangements, now strictly enforced, have reduced the possibility of a similar incident involving both commodities.

The Gas Authority has stepped up enforcement against contraventions of the permit conditions for LPG cylinder wagons, which stipulate that any vehicle laden with LPG cylinders may only be parked unattended outdoors in a non-congested area and at least 15 metres away from any building of multiple occupancy. Since the incident at Tuen Mun, the Gas Authority has taken out 78 prosecutions against the owners of illegally parked LPG cylinder wagons. Fines imposed ranged from $500 to $5,000.

For the longer term, the Gas Authority is identifying suitable sites for the overnight parking of LPG cylinder wagons. Potentially suitable sites are being assessed in consultation with the LPG suppliers and the relevant District Boards. The first such parking area will be brought into operation in Tuen Mun this month. Once the facility is in operation, the Gas Authority will amend the LPG cylinder wagon permit conditions so as to prohibit overnight parking of the vehicles elsewhere in the district.

The Gas Authority estimates that seven more such sites will commence operation in other districts over the next 18 months. The long term objective is to prohibit overnight parking of vehicles loaded with LPG cylinders in urban areas.

End/Wednesday, March 1, 1995

51

Tolo Harbour water quality * ♦ ♦ * *

Following is a question by Rev the Hon Fung Chi-wood and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

In his report of October 1994, the Director of Audit pointed out that after the commissioning of the process modification works of the Tai Po Sewage Treatment Works Stage IVA, the actual nitrogen removal rate for 1993 was only 66%, which fell far short of the target rate of 90%. In view of this, will the Government inform this Council:

(a) whether the above removal rate is an indication that no improvement can be made to the water quality in Tolo Harbour;

(b) what further steps will be taken by the Government to improve the water quality in Tolo Harbour; and

(c) what is the present state of water quality in Tolo Harbour?

Reply:

Mr President,

(a) In fact, the average nitrogen removal rate of the Tai Po Sewage Treatment Works increased to 75% in 1994. The Tai Po Sewage Treatment Works process modification to enhance nitrogen removal is only one of several actions taken under the Tolo Harbour Action Plan to reduce the discharge of nutrients into Tolo Harbour. The key action is to remove the nutrient inputs from the Sha Tin and Tai Po Sewage Treatment Works permanently by exporting the discharges from the two treatment works to Victoria Harbour via the Kai Tak nullah by implementing the Effluent Export Scheme. Construction work for the Scheme is largely complete and the Scheme should be commissioned later this year. Once the Scheme is in operation, nutrient loadings in Tolo Harbour will be greatly reduced and water quality improved. The process modification work was only intended to be an interim measure to reduce nitrogen loading pending completion of the Effluent Export Scheme and has no long-term implications for the water quality of Tolo Harbour.

52

(b) The measures taken by Government to improve the water quality of Tolo Harbour are co-ordinated under the Tolo Harbour Action Plan. This comprises, in addition to the process modification works and Effluent Export Scheme, provision of village sewerage, transfer of water treatment works sludge to Sha Tin Sewage Treatment Works for marine disposal, and implementation of the Water Pollution Control Ordinance and the Livestock Waste Control Scheme including the banning of livestock keeping in new towns. Many of these measures have either been completed or are being implemented. With the planned completion of the two key measures, i.e. the Effluent Export Scheme later this year and the provision of village sewerage to unsewered areas in Sha Tin and Tai Po next year, water quality will gradually improve after 1996.

(c) While the Action Plan has prevented further decline in the water quality, major improvement will not be achieved until the remaining two key measures, i.e. the export of treated effluent to Victoria Harbour and the provision of village sewerage in unsewered areas, have been fully implemented. The waters of the Tolo Harbour continue to suffer from high nutrient levels and low dissolved oxygen in the lower layer of the water. While there has been a reduction in the number of algal blooms since 1988, there have been no other significant improvements in the last three years.

End/Wednesday, March 1, 1995

Hong Kong/Taiwan air services

♦ * * * *

Following is a question by the Hon Henry Tang Ying-yen and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

With regard to air traffic between the territory and Taiwan, will the Government inform this Council of:

53

(a) the progress of negotiation for the renewal of the air services agreement between the territory and Taiwan which will expire at the end of April this year, and whether any discussion has been held regarding the extension of the agreement beyond 1997; and

(b) the implications on the local economy as well as the benefits to consumers resulting from Taiwan's proposed plan to designate air transportation services as "authorised enterprise", which will enable such enterprises, irrespective of whether Chinese-held shares of these enterprises exceed 20%, to invest in Taiwan as long as they are registered in the territory, thus providing airlines registered locally not yet operating Taiwan flights with the opportunity to join the competition?

Answer:

(a) Air services between Hong Kong and Taiwan are conducted under the terms of an inter- airline agreement between CPA & CAL. The current agreement expires on 29 April 1995 and discussions on this renewal are underway between the two airlines. The Hong Kong Government has no involvement in these discussions.

(b) The Hong Kong/Taiwan route is already well- served, with Cathay Pacific Airways and China Airlines operating close to 200 frequencies per week and five other airlines providing about 25 services per week. We have no indication that other Hong Kong airlines are interested in serving this route. An assessment of the impact on the market of such an operation would in any case depend on a number of variables, e.g. the operator concerned, frequency of services, quality of services, destinations, etc.

End/Wednesday. March I. 1995

54

Comprehensive Development Area zoning *****

Following is a question by the Hon Albert Chan Wai-yip and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

Since the adoption of the "Comprehensive Development Area (CDA)" zoning as a guiding concept to promote co-ordinated urban renewal, the Town Planning Board has endorsed a number of CDA layout plans despite objections from the local residents, thus allowing the Land Development Corporation, the Hong Kong Housing Society and private developers to submit applications for development. In this connection, will the Government inform this Council:

(a) of the effects of CDA zoning on the promotion of urban renewal;

(b) of the time required from the designation of a CDA to the implementation of the redevelopment scheme;

(c) whether the developers granted permission to undertake redevelopment in a CDA are required to start or complete their projects within a specified period; if so, what is the number of cases in which work has failed to commence in accordance with the schedule of the scheme, and what the reasons for the delays are;

(d) whether, in view of the adverse affects which a delay in redevelopment may have on the residents and the district concerned, consideration will be given to imposing punishment on those developers who are granted the right of development but have delayed the commencement of redevelopment projects, so as to speed up the urban renewal process; and

(e) whether CDA zoning will continue to be adopted as a guiding concept for urban renewal; if so, whether any plans have been drawn up for improving its effectiveness?

55

Answer:

Mr President,

Answers to this five-part question are as follows -

(a) The "CDA" zone is designated on statutory town plans under the Town Planning Ordinance, Cap. 131 to ensure that an area is developed/redeveloped in a comprehensive manner. It helps promote urban renewal by maximising the opportunity to provide community and open space facilities and upgrading the obsolete road network in the old urban area.

(b) Once a site is designated as "CDA" on a statutory town plan, a developer can submit a planning application to the Town Planning Board in the form of a master layout plan. There is, however, no provision under the plan or the Ordinance on when an application should be submitted.

(c) The Board normally specifies a time limit in granting planning permission including proposals in a "CDA" zone. The planning permission will cease to have effect, unless prior to the specified date either the development permitted has commenced or the planning permission is renewed.

There are 48 "CDA" zones with approved master layout plans. As at the last quarter of 1994, 14 "CDA" schemes were completed and 7 were under construction. Works on the remaining 27 "CDA" schemes have not commenced. Some are at various stages of implementation such as negotiation regarding land exchange, land assembly, resumption/clearance and assessment and payment of compensation. The pace of implementation of "CDA" zones is affected by complex factors including ownership patterns, physical site constraints, business decisions by individual developers/land owners, and the general economic climate.

(d) There is no provision under the Town Planning Ordinance to "punish" developers who are granted planning permission but fail to proceed with the redevelopment projects. The planning permission will expire if a developer does not commence work or have the permission renewed. Upon expiry of a planning permission, a fresh application to the Board is required should the developer wish to undertake the redevelopment project again.

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(e) The "CDA" zoning will continue to be used to promote urban renewal. To facilitate prospective developers' preparation of master layout plans for "CDA" sites, planning briefs are prepared to set out planning and engineering requirements. The Board reviews the implementation progress of the various "CDA" zones every five years once they have been designated on the statutory town plans.

End/Wednesday, March 1, 1995

Plans to tackle juvenile crime * * * * *

Following is a question by the Hon Timothy Ha Wing-ho and a reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Juvenile crime has been on an upward trend, with recent statistics showing that the rate of crime committed by young people under the age of 21 in the first half of last year was 35%, and that the situation in was even more serious in new towns such as Tuen Mun where the rate reached 60%. In view of this, will the Government inform this Council whether:

(a) it has formulated any long-term policy to tackle the worsening problem of juvenile crime, if so, what the details are; if not, why not;

(b) there is any specific plan on the educational front to instil correct values in young people to prevent them from going astray; and

(c) it has formulated any new plans to improve the quality and quantity of youth activities organised by the relevant Government departments and voluntary agencies?

57

Reply:

Mr President,

The problem of young offenders remains a matter of concern to the Government. While the proportion of young persons (under 21 years of age) arrested dropped last year, the actual number of such persons arrested has increased.

Specifically, in answer to the Hon Timothy Ha's three questions:

(a) Our policy on tackling the problem of youth crime is threefold: first, to prevent its occurrence through education, family and social services, and publicity; secondly, to arrest and punish the offenders through law enforcement and the criminal justice system; and thirdly, to rehabilitate the offenders, through family, social and correctional services. Many government departments, including the Police, Correctional Services, Education and Social Welfare join forces to tackle this problem.

The Fight Crime Committee, which is chaired by the Chief Secretary and advises the Administration on measures to fight crime, gives particular attention to the problem of juvenile crime. Its Standing Committee on Young Offenders has commissioned the University of Hong Kong to conduct a research into the social causes of juvenile crime. The results of this research should help the Administration to understand the problem better so as to formulate appropriate countermeasures.

(b) The Administration recognises the importance of cultivating social and moral values in our young people to prevent them from going astray. Since 1981, the Education Department has issued the "General Guidelines on Moral Education in Schools", which recommends a crosscurricular approach to integrate moral education into the formal and informal school curricula, and extra-curricular activities. Schools have responded positively. In addition, the Department also provides training programmes for teachers and produces resource materials to help schools and teachers implement moral education activities.

(c) The Administration is always keen to improve both the quality and quantity of youth services. The Social Welfare Department is implementing the recommendations of the Working Group on Review of Children and Youth Centre Services, which include:

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(i) offering programmes to young persons which are more 'social work' oriented;

(ii) setting up integrated social work teams to provide comprehensive youth services to meet young people's needs; and

(iii) providing programmes with intensive social work input to school dropouts, students with low academic achievement, youth with unsteady employment pattern and unemployed youth.

The Social Welfare Department has provided funding support in 1994/95 for two additional outreaching social work teams and 47 additional school social workers to tackle youth problems. Funding has also been ear-marked for another 22 additional school social workers in 1995/96. The Department will also set up a team of specially trained social workers in October 1995 to provide intensive counselling and structured group programmes for young drug abusers. These all aim to provide more and better services to our young people.

Many Government departments and voluntary agencies also organise community activities, involving young people's participation. The Commission on Youth, chaired by the Hon Eric Li, has carried out a number of relevant studies (e.g. on Youth Participation in Community Activities) which should facilitate all concerned to understand the aspirations and needs of young people better, and in turn help to improve the quality of activities organised for them.

End/Wednesday, March 1, 1995

Licensing of travel agents *****

Following is a question by the Hon Fred Li and a written reply by the Secretary for Trade and Industry, Mr T H Chau, in the Legislative Council today (Wednesday):

Question:

At present the Government does not take into account the performance of travel agents, such as whether there have been frequent complaints against them of providing services that do not accord with what is advertised, when considering their applications for licence renewal. In this connection, will the Government inform this Council whether:

I

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(a) the Government will include the standard of their performance as a prerequisite in considering travel agents' applications for licence renewal; if not, what the reasons are; and

(b) the Government will consider setting up a "traveller complaints and information hotline" as well as stepping up its publicity efforts, so that the public can have a better understanding of their rights and the channels for lodging complaints, thus providing the consumers with greater safeguard; if not, what the reasons are?

Reply:

Mr President,

Regarding part (a) of the Honourable Member's question, the Registrar of Travel Agents at present examines the financial position of a licensed travel agent and checks whether the licensee remains a member of the Travel Industry Council (TIC) and has been convicted of any criminal offence in applying the "fit and proper" test, for licence renewal under the Travel Agents Ordinance. In order to further improve the service of licensed travel agents, we are consulting the Advisory Committee on Travel Agents on whether, and if so how, substantiated complaints from the Consumer Council and TIC about the service provided by licensed travel agents should be taken into account in applying the "fit and proper" test.

As regards part (b), past complaint statistics collated by the Consumer Council and TIC indicate that outbound travellers are well aware of their rights and the complaint channels. If they are not satisfied with the quality of their travel agent's service, they may lodge their complaints direct with the agent concerned in the first instance. If they are not content with the agent's explanation and, in some cases, the compensation offered by the travel agent, they may pursue their complaint with the Consumer Council, TIC or Small Claims Tribunal, or resort to civil action. There are sufficient channels for travellers to lodge their complaints. To establish another complaint channel will duplicate the existing efforts of the Consumer Council and TIC.

In fact, outbound travellers are from time to time reminded by the Consumer Council's publicity efforts of their rights and the complaint channels available. To enhance the protection of outbound travellers, we have invited the Consumer Council and TIC to step up their publicity efforts in this regard.

End/Wednesday, March 1, 1995

I

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Sponsorship by tobacco industry ♦ ♦ ♦ * *

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

Question:

Regarding the issue of dissuading young people from smoking, will the Government inform this Council whether :-

(a) it is aware of the number of young people smokers and the amount of expenditure incurred by them on smoking in each of the past three years;

(b) it is aware of the number of sports and cultural activities sponsored by the tobacco industry and the total amount of such sponsorship for the past three year; if so, what the respective figures are; and

(c) it will set up a health promotion fund to take the place of the tobacco industry in sponsoring the above activities so as to cultivate a positive influence on young people who may then cut down on smoking?

Reply :

Mr President,

Since 1982, cigarette smoking pattern surveys have been conducted regularly by the Census and Statistics Department as part of the General Household Survey. This shows that the smoking population in Hong Kong has declined over the years. According to the latest survey which covered the period August-September 1993, about 16,600 people aged 15-19 were daily smokers. This represented 4.2% of the relevant population group. In July 1990, the figures were 20,600 and 4.6% respectively. It should be noted, however, that since smoking is not a socially-accepted behaviour, these statistics may be subject to under-reporting.

The survey did not seek information on individual smoking expenditure. Nevertheless, the total can be estimated from survey data about the average number of cigarettes smoked. In 1993, we estimate that young people spent about $70 million on cigarettes (at an average price of $23 per packet), compared with about $47 million in 1990 (at an average price of $12.50 per packet.

- 61 -

The major public arts/sports bodies such as the Sports Development Board, the Urban Council, the Hong Kong Arts Development Council and the Hong Kong Academy for Performing Arts do not seek or accept sponsorship of their activities from tobacco companies. The policy of the Regional Council is that "sponsorship may be accepted from companies whose line of business may include tobacco, provided that no tobacco advertising is made in any related publicity".

We do not monitor the sponsorship of non-govemment arts and sports activities by the tobacco industry and are therefore not in a position to provide figures regarding the total amount of such sponsorship. However, we are aware that the tobacco industry provided sponsorships amounting to some $28 million for nine major arts/sports events in 1994-95, some $20 million for nine major arts/sports events in 1993-94 and some $11.3 million for ten major arts/sports events in 1992-93.

Government has put much effort into dissuading young people from smoking. Our overall anti-smoking strategy comprises legislation, public education as well as publicity. This strategy advises young people not to smoke and informs them of the hazards of smoking. At the same time, it aims to minimise the community's exposure to tobacco advertising so that young people will not be encouraged to associate themselves with smoking.

Although tobacco sponsorship cannot be identified as the single cause of smoking among children, overseas and local circumstantial evidence suggests that it plays an important role. Some overseas countries e.g. Australia and New Zealand have banned tobacco sponsorship for sports and cultural events and set up a health promotion fund to provide alternative funding to sustain them. We are studying the experience of overseas countries and the applicability of this concept to Hong Kong.

End/Wednesday, March 1, 1995

I

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Applications to defer payment of tuition fees ♦ ♦ * ♦ ♦

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:

With regard to the issue concerning students of Government funded tertiary institutions applying to defer payment of their tuition, will the Government inform this Council :-

(a) of the number of students who have applied to defer payment of their tuition, as well as the proportion of such students to the total number of students, in each of the past three years;

(b) whether the deadline for payment of tuition was set at a date before the completion of the vetting of the students’ applications for grants and loans, resulting in some students having to apply to the institutions for deferment of payment of their tuition, particularly those relying on the grants and loans to pay their tuition; and

(c) if the answer to (b) is in the affirmative, whether the Government regards the situation of students applying for deferment of payment of their tuition as an indicator reflecting their affordability to pay the tuition; if so, whether it will review the rate of increase of tertiary tuition; if not, whether it can provide any explanation in regard to the problem of students applying for deferment of their tuition mentioned above?

Reply:

Mr President,

(a) Tuition fees are paid direct to the institutions and the institutions themselves have the authority to grant approval for applications to defer payment. Information on the situation for the three previous years supplied by the institutions is as follows -

63

(a) Student Population (b) No. of Applications for Deferment (C) Application Rate for Deferment (b)/(a)

1992/93 42,562 890 2.1%

1993/94 46,613 1,390 3.0%

1994/95 55,020 2,838 5.2%

(b) The deadlines set by the institutions covered by the Local Student Finance Scheme (LSFS) for the 1994/95 academic year were -

Name of the Institution Deadline for the First Semester Deadline for the Second Semester

City University of HK 31 Aug 94 25 Mar 95

HK Baptist University 24 Aug 94 7 Jan 95

Lingnan College 10 Sept 94 28 Jan 95

The Chinese University of HK 11 Nov 94 21 Feb 95

The HK Polytechnic University 10 Sept 94 27 Jan 95

The HK University of Science and Technology 17 Aug 94 20 Jan 95

The University of HK 31 Aug 94 4 Jan 95

HK Technical College (Chai Wan) 25 Aug 94 22 Feb 95

HK Technical College (Tsing Yi) 25 Aug 94 22 Feb 95

Applications for grants and loans under the LSFS are submitted by students through their respective institutions to the Student Financial Assistance Agency (SFAA). The application period commences in May and closes at the end of October each year. Under the SFAA’s current performance pledge, the normal processing time for an application supported by complete information is three months from the date of receipt. It can be seen that there is no strict correlation between the deadline dates set by the individual institutions for payment of fees and the date of completing the processing of an application for financial assistance. The latter depends more on the date of submission of the application by an applicant.


64

For students who experience or anticipate difficulties in paying their tuition fees on the deadlines, there are standing arrangements advising them to seek the approval of their respective institutions for a deferral of payment in advance. Such requests are invariably granted on proven financial difficulties. These students can also approach the SFAA for immediate processing of their applications. Such requests will be considered sympathetically if supported by grounds of genuine financial hardship.

(c) In view of the fact that deferral statistics are influenced by the application dates set for both grants and loans and deferral, Government does not regard the statistics as a useful indicator reflecting the students’ ability to pay the tuition fees.

End/Wednesday, March 1, 1995

Newly qualified drivers more prone to accidents *****

Following is a question by the Hon James To Kun-sun and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

Regarding the involvement in traffic accidents of drivers who have obtained their full driving licences for less than one year, will the Government inform this Council :

(a) of the number of traffic accidents involving such drivers in each of the past three years;

(b) whether, given that such drivers are prone to traffic accidents, the Government will consider adopting the practice of other countries such as Australia, and making it a statutory requirement for first-time driving licence holders to display "New Driving Licence" signs prominently in the front and the rear of their vehicles within one year after the issue of their licences, so as to warn other drivers; and

65

(c) whether the Government will consider introducing legislation requiring such drivers to drive at lower speed on highways, in order to reduce the chances of traffic accidents?

Reply:

Mr President,

The traffic accident statistics for the last three years, in respect of drivers who have held a full licence for less than a year, are as follows:

Private car Motorcycle

1992 1222 1224 1222 1222 1224

744 745 710 588 511 567

Available statistics suggest that newly qualified drivers are more prone to traffic accidents. For example, in 1994 private car drivers with less than one year’s experience had an accident rate of 10.5 per 1,000 drivers, compared with 7.5 per 1,000 drivers for those with more than one year’s experience.

In answering a question in the Legislative Council on January 11 this year, I said that it would be appropriate to review the situation and to consider whether any special arrangements needed to be introduced in respect of young or inexperienced drivers. I also said that we would be seeking information on practices in other countries, and whether these had been successful in reducing the incidence of accidents involving newly qualified drivers. We are now in the process of gathering such information.

Speeding is not the only cause of traffic accidents. Other factors include the sudden changing of lanes without due care, and driving too close to the vehicle in front. Different speed limits for different categories of qualified drivers may well create more problems than they solve. For example, if newly qualified drivers were required to drive at slower speeds this could hold up the traffic ad cause frustration amongst other motorists, perhaps resulting in accidents. Nevertheless, this suggestion will be considered further.

End/Wednesday, March 1, 1995

66

No plan to demolish Jordan Valley Flatted Factory

*****

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

Question:

Will the Government inform this Council whether it will reveal its plans for the demolition or redevelopment of the old dilapidated resettlement factory buildings which pose an eyesore to the residents of Jordan Valley in Ngau Tau Kok, near Chun Wah Road?

Answer:

Mr President,

The Jordan Valley Flatted Factory occupies a small site of 0.31 hectare and contains 188 units which are fully occupied. There is no plan at present to demolish or redevelop the resettlement factory building.

End/Wednesday, March 1, 1995

DAILY INFORMATION BULLETIN

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

Thursday, March 2,1995

Contents Rage No,

Governor appeals for more jobs for the disabled........................ 1

Transcript of remarks by FS............................................ 4

AG to appeal against Magistrate's decision on Ming Pao case............ 5

Actions to improve employment prospects of disabled.................... 6

Answers to critics of TOC.............................................. 7

Another Airport Core Programme contract awarded........................ 9

HM ships Plover and Peacock visit Macau................................ 9

Closure of Aberdeen illegal structure sought.......................... 10

New Labour Relations Service office to open in Sha Tin............. 11

Hong Kong Monetary Authority money market operations............... 11

1

Governor appeals for more jobs for the disabled ♦ ♦ ♦ ♦ ♦ V

The Governor, the Rt Hon Christopher Patten, today (Thursday) urged the community to do more to improve job opportunities for the disabled.

Speaking at the second Summit Meeting on Open Employment for People with a Disability, the Governor said that while good progress had been made since the first summit a year ago, more should be done to tackle the question of enhancing the employment prospects of the disabled.

"The work is not done; it is just beginning," he declared.

The meeting, at which three Policy Secretaries pledged support for the worthy cause, was attended by some 100 representatives of employers associations and disabled groups.

Referring to a recent survey by the University of Hong Kong on the employment of the disabled, the Governor said while he would not go along with all the methodology in that report and did not accept that the unemployment figures for the disabled were as high as suggested, he agreed that the report made a very valid point: there were many disabled persons who could work, who wished to work but who did not work.

"We must do more for these people,” he asserted.

He noted that 37 employers had responded to the proposal at last year’s summit to set voluntary targets for employing disabled persons and, as a result, 302 additional employment opportunities would be made available for disabled persons by next year.

"We hope to increase the new job opportunities to 500 by March 1997," the Governor said.

Also speaking at the meeting, the Secretary for Education and Manpower, Mr Michael Leung, said a record 1,414 disabled people were placed in open employment last year by the Labour Department’s Selective Placement Division (SPD) while the Employees Retraining Board had spent $8 million to provide training for 819 disabled workers in 31 courses.

2

The SPD had also undertaken an impressive array of educational and promotional activities to improve employers' understanding of the working abilities of the disabled, including launching the popular TV series "Under the Same Sky" and radio programme "Newsrama" which had a viewership of 1.27 million and an audienceship of 170,000 respectively.

In addition, two sets of guide books were published, one on "Job Interviewing Techniques" for people with a disability and the other on "Peer Group Acceptance" for seven types of disabilities.

Staff of the SPD also reach out to employers through direct contacts to promote the working abilities of the disabled.

"We are making fully-fledged publicity efforts to dispel public misconceptions about employing people with a disability," Mr Leung said.

The Secretary for Health and Welfare, Mrs Katherine Fok, said a working party chaired by the Director of Social Welfare to review training and employment for the disabled had made excellent progress and would produce its final report in a few months.

Meanwhile, the Vocational Training Council had adopted a flexible approach to entrance requirements for applicants to their skill centres for the disabled and had successfully organised six short courses for disabled people on various basic occupational skills in the servicing and commercial sector.

"With good training and the experience and confidence gained from working in sheltered workshops, we encourage those people with a disability who have the potential for advancement to integrate themselves further into society by moving on into supported employment," Mrs Fok said.

The Secretary for the Civil Service, Mr Michael Sze, said there were 3,842 persons with a disability in the civil service and the number would rise to 4,000 by March next year, the target set at the last summit.

A deputy secretary for the Civil Service has been charged with the important task of co-ordinating a more imaginative, proactive and facilitating approach in the employment of the disabled in the civil service.

3

This includes co-operating with the SPD and non-governmental organisations in the identification of target departments, conduct of sensitive job matching, more focused training for certain types of civil service jobs, better preparation of disabled applicants and selection boards for recruitment procedures, and planning of practical and helpful assistance at the workplace to the employment departments.

This approach was applied on a pilot basis to two recruitment exercises for office assistants and clerical assistants last year and, as a result, about one-third of all the disabled applicants turning up for interviews were found suitable for appointment.

Summing up the discussions at today's meeting, the Governor reiterated the Government's firm commitment to promoting and expanding the employment opportunities for people with a disability, in both the public and private sector. The Government will take a series of actions in the coming year:

* introduce the Disability Discrimination Bill into the Legislative Council next month

* publish a White Paper on Rehabilitation by the end of May

* continue to expand its educational and promotional programmes to improve public understanding of people with a disability

* produce two sets of videos with guide books to strengthen publicity efforts

* increase staff resources at the SPD

* look for more ways of matching the skills of disabled people to the specific jobs on offer

provide 330 additional supported employment places

* give urgent consideration to the final report to be received in May from the working party on training and employment for people with disabilities

4

* ensure that a promotional visit is paid to all major Government departments by the Civil Service Branch and Labour Department

"So we in the Government have a full programme ahead. I would like to ask employers to join us in these efforts," the Governor said.

End/Thursday, March 2, 1995

Transcript of remarks by FS

*****

Following is the remarks by the Financial Secretary, Sir Hamish Macleod, after his briefing at Home Affairs Department this morning (Thursday):

Good morning,

Well, we had a very full discussion. We ran a bit over time and I wasn't able to stay any longer but I must say the general reaction was very encouraging. I'm grateful to District Board Chairmen for their general support. Of course they have some particular points also to make but the general reaction was very good. There are a few points which I've said we can look into further.

1 think still, inevitably, some concern, for example, over traffic congestion in some areas. Clearly, we accept there is a problem, that is why we are consulting on what measures we should take on traffic congestion. But in general I am encouraged and I will go on today explaining what we have done and also listening to reaction. This is an on going process, we have to listen to reaction and reflect it in future measures. So, any questions? Quick ones.

Question: Sir Hamish, can you react to Mr Chen Zuo'er's comment last night?

FS: I'm not going to react.

Question: No, but do you think that he is commenting on the 1996-97, just participate in the study to know the budgetary process or direct participation in the following Budget?

FS: As I said yesterday at the press conference, my aim is not to have public arguments through the press.

5

Question: No, what is your interpretation of his words?

FS: I'm not going to interpret his words because then he'll feel compelled to comment on my words. We've made proposals to them in December and we hope that soon we can have a discussion, not in the newspapers but in the JLG forum, that's the way to make progress. And if I fall for the temptation of commenting on reactions from various people, then I am just contributing to megaphone diplomacy. So let's have a sensible discussion in the JLG and reach an agreement. Thank you very much.

End/Thursday. March 2, 1995

AG to appeal against Magistrate's decision on Ming Pao case ♦ * * * *

The Attorney General, Mr Jeremy Mathews, has decided to lodge an appeal against a magistrate's decision made on February 16 on summonses issued to Ming Pao Newspaper Limited and three of the paper's editorial staff for offences contrary to section 30 of the Prevention of Bribery Ordinance.

Mr Mathews has applied today (Thursday) to the magistrate to state and sign a case in order that he may conduct his appeal.

In the event that the magistrate signs the case as requested, it will be placed before a judge of the High Court. It is the intention of the Attorney General to ask that judge to refer the matter for the consideration of the Court of Appeal.

The magistrate, Mr Hugh Sinclair, had ruled that the defendants had no case to answer because section 30( 1) of the Prevention of Bribery Ordinance was inconsistent with Article 16 of the Bill of Rights and consequently had been repealed by the Bill of Rights Ordinance.

A spokesman for the Legal Department said today that in view of the appeal, ICAC had been advised that they should continue to respond to any alleged or suspected breach of section 30(1) in the same manner as they have hitherto.

End/Thursday, March 2. 1995

6

Actions to improve employment prospects of disabled * * * * *

The following is a list of actions to be taken by the Government in the coming year to improve employment prospects of disabled people:

* The Government will introduce the Disability Discrimination Bill into the Legislative Council in April. The bill will cover a wide range of activities including prohibiting discrimination against disabled people in employment. It will give people with a disability powerful legal weapons to fight for equal opportunities and to fight against discrimination and harassment.

* The Government will publish a White Paper on Rehabilitation by the end of May. This will set out a comprehensive statement of Government policy for the development of all its plans for rehabilitation services for the next decade and beyond. An executive summary will be provided to make the paper accessible to a wider audience.

* The Government will allocate about $8 million in 1995/96 to expand its educational and promotional programme to improve public understanding of people with a disability. Of this, $1.9 million will be allocated specifically to promote job opportunities for people with a disability. Programmes will be launched in collaboration with employers associations to achieve the maximum impact.

* Two sets of videos with guide books will be produced to strengthen the Government's publicity efforts: one on support services available to employers and the other on work ethics in open employment for employees who have a disability.

* Two Assistant Labour Officer I posts will be created to strengthen the staff resources of the Labour Department's Selective Placement Division, which achieved a record 1,414 placements in 1994. The division will aim for no fewer than these in 1995.

* The Government will be looking increasingly for ways of matching the skills of disabled people to the specific jobs on offer. The Civil Service Branch, under a pilot scheme, has recruited a number of Office Assistants and Clerical Assistants with a disability. The branch will review the success of the scheme shortly to see whether it can be expanded. Staff of the Selective Placement Division will step up visits to individual employers to gauge more accurately the kind of jobs they need to fill so that training course for the disabled can be adjusted to meet these needs.

7

* The Government has earmarked funds to provide 330 additional supported employment places and will continue to re-target resources to provide additional supported places as needs arise.

* The Government will give urgent consideration to the final report to be received by May from the Director of Social Welfare's working party on training and employment for people with disabilities. Recommendations which are endorsed by the Government will be implemented as rapidly as possible.

* A promotional visit will be paid to all major Government departments by the Civil Service Branch and Labour Department. The branch will aim to sit in on at least 50 per cent of recruitment interviews of people with a disability held by Government departments this year. Every effort will be made to meet the voluntary target of 4,000 disabled persons employed in the civil service by March 1996. A further target will be set for March 1997 in a year's time.

End/Thursday, March 2, 1995

Answers to critics of TOC ♦ ♦ ♦ ♦ ♦

The Target Oriented Curriculum (TOC) is designed to address some of the needs of the education system in Hong Kong, downplaying the role of rote learning and encouraging teachers to bring life, interest and active participation into the classroom. Senior Assistant Director of Education Mr T F Kwan said today (Thursday).

Speaking at a press conference. Mr Kwan said rather than "teaching across-the-board", which resulted in brighter students feeling bored and less bright students frustrated and failing to catch up, TOC advocated adoption of various teaching approaches that would meet the evolving demands of a larger and more diversified group of learners.

"Through careful observations and monitoring of the progress of individual children, teachers are able to discover their strengths and weaknesses and devise appropriate remedial measures at an earlier stage, thus preventing aggravation of the problem," Mr Kwan said.

8

Replying to critics of the curriculum, Mr Kwan said as far as management approach in the implementation of TOC was concerned, the Education Department specified the aims and objectives and allowed schools to choose their own procedures to meet the aims and objectives.

"We have full confidence in the professionalism of Hong Kong teachers and believe that for well qualified professionals, the best approach to motivate them is to give them as much freehand as possible," he said.

"Front-line teachers know their students best. Therefore, we leave the organisation and pace of teaching to teachers so they can choose approaches and strategies that best fit the needs of their students to achieve the highest efficiency.

"The department will continue to provide examples and backup materials for reference by schools and teachers."

Mr Kwan added that active participation and collaboration from schools was essential for TOC to succeed.

On the call for more piloting before full implementation of TOC, Mr Kwan said in fact TOC had been tried out in the last three years and according to suggestions, it would take a long time to implement TOC in all schools and there would be confusion in the transition when, for example, Primary Six leavers were selected for secondary school admission.

Mr Kwan said TOC would initially be adopted in the three core subjects of Chinese, English and Mathematics. It will be implemented in Primary 1 classes of 76 schools in 1995, extending to all Primary 1 classes in 1996.

TOC will be implemented in Primary 1 and 2 of all schools in 1997. Thereafter, TOC will gradually be extended to all primary classes.

Mr Kwan thanked staff of schools who helped develop I OC over the past three years.

Ue also invited members of the public to visit the roving exhibition on TOC, the opening of which will be officiated by the Director of Education, Mr W K Lam, and other educationists, including representatives of major sponsors of schools.

The opening ceremony will take place on Saturday (March 4) at second floor of Cityplaza II, Taikoo Shing, and the exhibition thereafter will be staged in four other popular arcades throughout the territory over a total period of 10 days.

End/Thursday, March 2, 1995

9

Another Airport Core Programme contract awarded ♦ * * * *

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 construction of an administration building for the Lantau Fixed Crossing.

The $87 million contract has been awarded by the Architectural Services Department to Yau Lee Construction Company Limited of Hong Kong.

The company will be responsible for building a three-storey administration block and a single-storey workshop block at the Lantau Fixed Crossing's toll plaza on the Lantau Island.

Works will start later this month for completion in early 1997.

The Lantau Fixed Crossing, one of the 10 ACP projects, comprises the Tsing Ma Bridge, the Kap Shui Mun Bridge and Ma Wan Viaduct. The Crossing forms part of the 34-kilometre long expressway linking Tung Chung New Town and the new airport at Chek Lap Kok to the urban areas in Kowloon and Hong Kong.

The award of this contract brings the total number of ACP major contracts awarded so far to 110, with a total value of $79.1 billion.

End/Thursday, March 2, 1995

HM ships Plover and Peacock visit Macau

*****

In what is thought to be the first visit by the Royal Navy in living memory, two patrol craft of the Hong Kong Squadron, HMS Plover and HMS Peacock, will make an informal visit to the Portuguese colony of Macau between tomorrow (Friday) and March 6.

A busy programme of events has been arranged while both ships are alongside at Macau International Ferry Terminal. Lieutenant Commander Simon Brown, Senior Officer Hong Kong Squadron and commanding officer of HMS Plover, and Lieutenant Commander Sean Steeds, commanding officer of HMS Peacock, are to host a lunch and cocktail party for local dignitaries tomorrow.

10

Lt Cdr Brown will hold a press briefing in HMS Plover at 10 am on Saturday (March 4), while later in the day local children will attend a party on board the patrol craft.

A combined team from HM ships Plover and Peacock has also been invited to take part in a football match against a Macau team.

Attention news editors:

You are invited to photograph the arrival of HM ships at Macau International Ferry Terminal at 12.30 pm tomorrow (Friday) and attend the press briefing at 10 am on Saturday.

End/Thursday, March 2, 1995

Closure of Aberdeen illegal structure sought

*****

The Building Authority is seeking to close an unauthorised structure in Aberdeen so that it can be demolished without endangering the occupants and the public. The single-storey structure used for dwelling is located on the roof of a building in 162 Aberdeen Main Road.

A notice applying for a Closure Order from the District Court under the Buildings Ordinance on May 3 was posted on the premises today (Thursday).

Demolition work is expected to start as soon as the Closure Order is issued.

End/Thursday, March 2, 1995

11

New Labour Relations Service office to open in Sha Tin ♦ * * * *

The two Labour Relations Service Offices at Hilton Plaza in Sha Tin and Tai Po Government Offices will be moved to a new office at New Town Plaza on March 4 and 18 respectively.

The new office, located at Unit 746-750, Level 7, New Town Plaza I, Sha Tin, will provide services to Sha Tin, Tai Po, Fanling, Sheung Shui, Lo Wu, Sha Tau Kok, Lin Tong Nei and Lok Ma Chau.

End/Thursday, March 2, 1995

Hong Kong Monetary Authority money market operations

*****

Cumulative

$ million Time (hours) change (Smillion)

Opening balance in the account 1,820 0930 +889

Closing balance in the account 1,588 1000 +889

Change attributable to : 1100 +987

Money market activity +988 1200 +987

LAF today -1,220 1500 +987

1600 +988

LAF rate 4.25% bid/6.25% offer TWI 120.3 *+0.1* 2.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.03 15 months 2605 6.35 99.67 6.74

1 month 5.22 24 months 2702 7.50 100.80 7.18

3 months 5.94 29 months 3707 6.95 99.44 7.33

6 months 6.27 35 months 3801 8.00 101.56 7.53

12 months 6.64 58 months 5912 8.15 101.02 8.04

Total turnover of bills and bonds - $13,277 million

Closed March 2, 1995

End/Thursday, March 2, 1995

DAILY INFORMATION BULLETIN

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

Friday, March 3,1995

Contents PageJ^L

Govt to spend $30 billion on roads........................................... 1

Slope safety review report released.......................................... 2

HK delegation to visit China................................................. 4

Chinese delegation to visit HK......................................... 5

Transcript of Financial Secretary's remarks............................

Ten more lots of land up for auction...................................

Tai Lam Tunnel and Yuen Long Approach Road Bill........................ 9

Approval of a video-on-demand trial by HK Telephone Company Ltd........ 11

Pre-qualification for operation of Cross Border Coach Terminus......... 12

ACP Exhibition.........................................................

/Article on...

Contents PagfeJVa

Article on salary of middle-level managers and professionals.......... 14

Ecology study in Deep Bay.............................................

Yau Tsim fight crime carnival......................................... 16

New pedestrian subway across Kwun Tong Road to be constructed ........ 17

C losure of North Point il legal structure sought..................... 18

Study on redevelopment potential in metro areas....................... 18

Improvement to King George V Memorial Park............................ 19

Construction of dolphin and sea-bed pipeline proposed................. 20

Government approves redevelopment in Tuen Mun......................... 20

Tenders invited for Yuen Long footbridge.............................. 21

Tenders invited for sewers works...................................... 22

Drainage channel construction at Kam Tin.............................. 22

TOC exhibition opens tomorrow......................................... 23

Hong Kong Monetary Authority money market operations.................. 25

1

Govt to spend $30 billion on roads ♦ ♦ ♦ ♦ ♦

The Government will be spending $30 billion on new roads over the next five years, the Secretary for Transport, Mr Haider Barma, said this (Friday) afternoon.

Speaking at a media session to elaborate on the 1995-96 Budget with respect to transport, Mr Barma said this was on top of the $14 billion which the private sector would be investing in the Western Harbour Crossing for completion in 1997, and the Country Park Section of Route Three for completion in 1998.

He said the Government would soon be asking the Finance Committee to approve the funding, estimated at just over $1 billion, for building a duplicate Tsing Yi south bridge to relieve the serious traffic congestion experienced by Tsing Yi residents.

He added that in 1995-96, the Government would also employ consultants to conduct feasibility studies on electronic road pricing and the provision of traffic control and surveillance facilities for the strategic road network; and to conduct the Third Comprehensive Transport Study.

Mr Barma said there would be a five per cent increase in real terms in the recurrent public expenditure on transport in 1995-96.

He said the 1995-96 Draft Estimates included expenditure on the following non-ACP projects:

* Lung Cheung Road and Ching Cheung Road Improvements ($245 million);

Tuen Mun Road Improvements ($250 million);

Ting Kau Bridge and Viaduct ($250 million);

and the following major new projects which are planned to start in 1995-96:

Hung Hom Bypass and Princess Margaret Road Link ($881 million);

Reconstruction of major roads in the territory, 1995-96 programme

($346 million);

2

Improvements to Castle Peak Road from Siu Lam to So Kwun Wat ($282 million);

* Improvements to Victoria Road ($122 million), and

* consultancy for the design of Central and Wan Chai Bypass and Island East Corridor Link ($194 million).

Mr Barma said the Government's ability to control growth in recurrent expenditure on transport to some extent derived from its tremendous success in privatising the management of road tunnels, public car parks, parking meters, and vehicle examination centres.

"This record is second to none and has resulted in lower costs, increased efficiency and better service to the public," he said.

End/Friday, March 3, 1995

Slope safety review report released *****

The Govemor-in-Council has accepted the recommendations in the Report on the Review of Slope Safety Measures, which will further reduce the risk of landslides to the public and enhance Government's capability to respond speedily to such emergencies.

The Secretary for Works, Mr James Blake, today (Friday) released the report which contains the following main recommendations for immediate action:

(a) The current Landslip Preventive Measures (LPM) programme, which involves the inspection and, where necessary, upgrading of 10,000 manmade slopes listed in the 1977-78 catalogue of the Geotechnical Engineering Office, should be accelerated by 10 years for substantial completion by 2000.

(b) The LPM programme should be extended to cover certain slopes which have previously been classified as "low consequence", such as those close to busy roads and footpaths.

3

(c) The system for classifying slopes according to the consequences of their failure should be reviewed.

(d) Public education on slope maintenance should be stepped up. A layman's guide on slope maintenance and a geoguide for the professionals should be produced as soon as possible. Owners of private slopes and building managers should be made clearly aware of their obligations for slope maintenance.

(e) Response time of Works Departments to landslip emergencies should be

reduced through better deployment of stand-by staff, better coordination, extra transport facilities and upgrading of telecommunication equipment.

The Review also puts forward the following recommendations for further detailed consideration:

(f) Legislative amendments should be considered to improve statutory geotechnical control of private slopes and developments. This may include the statutory requirement to appoint qualified Geotechnical Engineers to undertake the investigation, design, supervision and administration of geotechnical works, and

(g) A register should be developed to clearly define the responsibilities for slope maintenance.

The comprehensive review of the policy, legislation and resources in respect of slope safety was carried out by the Secretary for Works following the Kwun Lung Lau landslide in July 1994.

Announcing the results of the review, Mr Blake said: "The review has produced far-reaching recommendations to complement those made by Professor Morgenstern in his inquiry into the cause of the Kwun Lung Lau landslide.

"In formulating our recommendations, we have taken into account views of the general public, Legco members and experts."

"Government is committed to implementing the recommendations in the Review Report with additional resources to speed up the LPM programme and to beef up the Geotechnical Engineering Office and the Buildings Department to do the work."

4

Mr Blake explained that since 1977, Government had spent more than $1 billion in the LPM programme. The acceleration and extension of the programme would cost an additional $1.3 billion in capital expenditure and $400 million in recunent expenditure over the next five years.

"Because of our steep terrain and dense urban development on hillsides, I share the views of many geotechnical experts that Hong Kong would never be entirely free from the threat of landslides. However, the measures we are putting into place will help reduce the risk of landslide to the lowest practical level," Mr Blake said.

End/Friday, March 3, 1995

HK delegation to visit China

*****

The Secretary for the Treasury, Mr Donald Tsang, will be visiting Beijing and Tianjin from March 12 to 19 this year, a Government spokesman announced today (Friday).

He will be accompanied by seven other Hong Kong Government officials.

This is one in a series of sponsored visits between Hong Kong and the mainland of China. The objective of the sponsored visit programme is to increase mutual understanding of Chinese and Hong Kong Government officials on each other's systems and ways of life.

The last similar visit, which took place in November last year, was led by the Secretary for Education and Manpower, Mr Michael Leung.

End/Friday, March 3, 1995

5

Chinese delegation to visit HK

*****

A Chinese delegation to be led by Mr Shao Guanfu, Deputy Director of the Hong Kong and Macao Affairs Office of the Ministry of Foreign Affairs, will visit Hong Kong from March 9 to 18 this year, a Government spokesman announced today (Friday).

There will be seven other members in the delegation. They also work in the Ministry of Foreign Affairs.

This is one in a series of sponsored visits between Hong Kong and the mainland of China. The objective of the sponsored visit programme is to increase mutual understanding of Chinese and Hong Kong Government officials on each other's systems and ways of life.

The delegation will be briefed by senior Hong Kong Government officials on policies relating to the economy, trade matters, financial affairs and the civil service.

End/Friday, March 3, 1995

Transcript of Financial Secretary's remarks

*****

Following is the transcript of the remarks made by the Financial Secretary, Sir Hamish Macleod, to reporters after attending a LegCo panel meeting this (Friday) morning:

Good morning. As you know, I have just finished a meeting with LegCo Members. I must say I am again encouraged by the meeting, I think in general the reaction to the Budget continues to be positive. There was interest to know more about a number of issues: there was some discussion, for instance, on the property market and my statement on that in the Budget; there was interest on the medium range forecast and the increased reserves. But I think I can say that no one issue sort of emerged as seriously problematic, it was more an asking for information and seeking views on the philosophy which lay behind some of the proposals. So I am generally encouraged by the meeting and I shall go on over the next few days explaining the Budget in more detail and my colleagues will join me in that.

6

As you know, we have had a number of Secretaries already speaking on their own areas and that will continue next week. And as we detect the need for more discussion on a particular item, we are very happy to arrange extra briefings by experts in the field. So we will go on explaining ourselves and hope to go on getting the good response which we’ve got so far.

Any questions?

Question and answer session

Question: Has China been informed of your successor and have they given their approval?

FS: I don’t know the answer to that. I did read something in the newspaper about it but I’m not actually the person who deals with (the question of) my successor, although of course I know who it is, so I don’t know the mechanics of it.

Question: Director Lu Ping has just said that the SAR Chief Executive - the British Government should let the SAR Chief Executive participate in making the 1997-98 Budget. How do you feel about that?

FS: I have no problems with that. In fact I was asked the same question by LegCo Members. If there is a wish for the Chief Executive Designate to take part in the talks about the 1997-98 Budget, I don’t have any problems with that.

Question: So the two countries should make the 1997-98 Budget together for Hong Kong?

FS: Well again, I am not going to be pinned down to particular words. As I’ve said before, having answered your specific question, we really need to talk to China on this. We are trying to be practical and helpful and I’m sure we can have a sensible discussion.

Question: So you have no doubts to let the Chinese participate in the 1997-98 Budget?

FS: I’m not adding to what I’ve said already but I've said very clearly that we are ready to consult and consult is much more than briefing.

7

Question: Does it mean that all the members support the Budget unconditionally?

FS: No, I'm certainly not going to put those words in their mouths, I think they must speak for themselves. But as I say, the general atmosphere was very good and was very positive. Thank you very much.

End/Friday, March 3, 1995

Ten more lots of land up for auction *****

The Lands Department will sell 10 more lots of land at three public auctions later this month.

Two more lots for private residential use will be offered for sale at the land auction scheduled to be held at Hong Kong Cultural Centre on March 14.

The first lot has an area of 13,999 square metres at Fung Shing Street, Ngau Chi Wan.

The developer has to complete a gross floor area of not less than 39,240 square metres on or before March 31, 1999.

The second lot is situated at Area 90B, Ma On Shan, Sha Tin, having an area of 10,900 square metres.

The developer has to complete a gross floor area of not less than 32,700 square metres on or before September 30, 1999.

The second land auction of this month will be held at the Hong Kong Cultural Centre, Tsim Sha Tsui, on 27th while the third - also the last of the 1994-95 financial year - on 30th at the same venue.

Of the eight lots to be offered for sale at these two auctions, five are designated for private residential developments, two for non-industrial purposes and one for industrial or offices ancillary and directly related to an industrial operation.

At the auction on March 27, two lots for private residential developments and two lots for non-industrial uses will be offered for sale.

8

The first lot, located in Chung Hau Street, Ho Man Tin, has an area of 3,380 square metres for private residential use.

The developer has to complete a gross floor area of not less than 15,210 square metres on or before March 31, 1998.

With an area of 2,155 square metres for private residential use, the second lot is located in Town Park Road, Yuen Long.

The developer has to complete a gross floor area of not less than 3,879 square metres on or before March 31, 1998.

The third lot, located in Area 100, Ma On Shan, Sha Tin, has an area of 10,306 square metres for non-industrial use, excluding godown, service apartments and petrol filling station, but including hotel purposes.

The developer has io complete a gross floor area of not less than 30,920 square metres on or before September 30, 1999. If the lot or part of it is to be developed for hotel purposes, the building convenant date will be extended to March 31, 2000.

Covering an area of 5,970 square metres, the fourth lot is situated in Area 37C, Tseung Kwan O, Sai Kung, and designated for non-industrial purpose, excluding office and godown, with the two floors immediately above the foundations to be used for non-industrial purpose, excluding residential, godown and office uses, while the remaining floors to be used for private residential purposes.

At the auction on March 30, three lots for private residential developments and one lot for industrial/godown or offices ancillary and directly related to an industrial operation will be offered for sale.

The first lot for private residential use is located in King's Park Rise, and has an area of 15,644 square metres.

The developer has to complete a gross floor area of not less than 13.440 square metres on or before September 30, 1998.

The second residential lot is located in Sha Ha, Sai Kung, having an area of 900 square metres.

The developer has to complete a gross floor area of not less than 324 square metres on or before March 31, 1998.

9

Covering an area of 16,301 square metres for residential use, the third lot is at Town Park Road North, Yuen Long.

The developer has to complete a gross floor area of not less than 29,342 square metres on or before September 30, 1999.

The fourth lot situated in Area 11, at the junction of On Lai Street and On Yiu Street, Sha Tin, has an area of 9,600 square metres for (i) industrial or godown or both; or (ii) offices ancillary and directly related to an industrial operation; or any combination of (i) and (ii).

The developer has to complete a gross floor area of not less than 28,800 square metres on or before March 31, 1999.

Full particulars and conditions of sale may be obtained from the Lands Department, 14th floor, Murray Building, Garden Road; and the District Lands Offices Kowloon, Yau Ma Tei Car Park Building, 10th floor, 250 Shanghai Street, Kowloon.

Sales plans are available for inspection at these offices.

Conditions of sale will also be available at the District Lands Offices of Sha Tin, Tuen Mun, Yuen Long, Tsuen Wan, Kwai Tsing, Tai Po, North, Sai Kung and Islands.

End/Friday, March 3, 1995

Tai Lam Tunnel and Yuen Long Approach Road Bill *****

The Tai Lam Tunnel and Yuen Long Approach Road Bill was published in the Gazette today (Friday).

The purpose of the Bill is to award a franchise to Route 3 (CPS) Company to construct and operate the Tai Lam Tunnel and Yuen long Approach Road sections of Route 3 - Country Park Section.

A Government spokesman said the package offered by the Route 3 (CPS) Co Ltd was the best bid received.

10

With an estimated target Internal Rate of Return (IRR) of 15.18 per cent, it compared very favourably with other similar "Build, Operate and Transfer" projects in the region, which produced IRRs of between 15 per cent and 25 per cent.

It was lower than the IRR for the Western Harbour Crossing.

The spokesman said this was a good deal. The toll levels were highly competitive. The Government would not be required to give any guarantee or financial support to the project.

The Company would complete the much needed road facility at no expense to the tax payer. Government resources that would otherwise have had to be allowed to this vital project can be used for other public projects which cannot privatised.

The Bill is modelled upon the Western Harbour Crossing Ordinance. The following improvements have also been achieved during the negotiations with the company:

* Government will have the right to impose financial penalties on the franchisee for any default or breach of the enabling Ordinance and the Project Agreement during the operating period;

* Government will have the right to direct the franchisee to make by-laws in relation to safety matters;

* The franchisee will make public financial and operational information as reasonably requested by the Government; and

* The Company will have to treat all applications for installation of utilities within the toll area in a fair and similar manner.

The Bill will be introduced to the Legislative Council on March 8.

End/Friday, March 3, 1995

11

Approval of a video-on-demand trial by HK Telephone Company Ltd *****

The Telecommunications Authority (TA) has given his approval to Hong Kong Telephone Company Limited (HKTC) to conduct a commercial trial on Video-on-Demand (VOD), subject to a number of conditions:

* Programme Material - HKTC undertakes that no Category III films or "indecent" material as classified under the Control of Obscene and Indecent Articles Ordinance will be used in the trial. HKTC further undertakes not to transmit any advertising materials in the trial.

Open Network Requirement - HKTC will need to open up its network to allow any other potential VOD operator to conduct similar trials on fair and non- discriminatory terms and conditions.

* Separation of Accounts - HKTC will need to operate the VOD trial service totally separate from all the existing services that it is operating to ensure that there is no cross subsidisation between the VOD trial and any other services.

* The approval is for a trial period of six months and HKTC is permitted to charge tariffs for the trial service as approved by the TA.

The trial is approved without prejudice to the TA's consideration on future proposals on further trials or the actual introduction of a commercial VOD service.

The Telecommunications Authority, Mr Alexander Arena,said: "The approval is given after consideration of the following:

* a likely public concern over decency of programme materials to be used in the trial;

* the desirability for HKTC as the existing monopoly operator to open up its transmission network for other service providers to be able to perform similar trials under Hong Kong's pro-competition regulatory framework;

* the necessary regulatory safeguards to prevent cross-subsidisation between the VOD trial and other services currently operated by HKTC;

and

12

* the desirability of Hong Kong to maintain its pre-eminent position in telecommunications in this Region."

VOD is a new technology being developed to allow point-to-point transmission of video pictures and sound through the public telephone network upon the request of a customer.

A detailed Statement by the Telecommunications Authority is available on application to OFTA and is accessible on OFTA's electronic bulletin board on tel 2834 0119.

End/Friday, March 3, 1995

Pre-qualification for operation of Cross Border Coach Terminus

* * * * ♦

The Transport Department is inviting interested parties to apply for prequalification to tender for a contract to manage and operate a Cross Border Coach Terminus in Austin Road.

A spokesman for the department said the terminus was located at the ground floor of the Hong Kong Scout Association Headquarters in Austin Road. Successful applicant will be invited to tender for the contract in early 1995.

A notice on the pre-qualification invitation was published in the gazette today (Friday).

The successful tenderer will be required, at its own cost and expense, to fit out the terminus by providing additional facilities and associated equipment, manage and operate the terminus for the operation of cross border coach services, and maintain the interior, all equipment and facilities in the terminus.

Revenue will be generated from charges levied on the cross border coach operators for the use of the terminus as well as other approved income sources such as advertising.

The contractor's remuneration will be in the form of a sharing of such revenue with the Government. Payment to the Government shall be subject to a minimum guaranteed payment.

13

The spokesman said the contract would be for three years with provisions for extension at the option of the Government.

The successful tenderer will be required to design and fit out the terminus by providing, at his own cost, additional facilities and other associated terminus equipment on top of the existing ones within 120 days from the date of the contract.

Applicants for this pre-qualification are required to provide evidence of experience and competence in the fitting-out, management, operation and maintenance of a transport terminus or termini, or alternatively evidence of ability to engage expertise and resources in these respects from acceptable sources.

Applicants should submit sufficient and relevant information for assessment of their suitability to be qualified for participation in tendering for the contract. They are also required to submit proposals to demonstrate their understanding of the tasks involved.

To avoid conflict of interests and monopoly of using the Austin Road Cross Border Coach Terminus, all existing cross border coach operators and their associated/related companies are prohibited from applying for the pre-qualification.

Pre-qualification documents are obtainable from the reception counter of Transport Department Headquarters, 41st floor, Immigration Tower, 7 Gloucester Road, Wan Chai, by production of a company letter indicating the interest in the prequalification.

The documents should be addressed to the Commissioner for Transport, and placed in the Transport Department Tender Box situated at the Transport Department Headquarters at the above-mentioned address before noon on April 7.

Late submissions will not be accepted.

End/Friday, March 3, 1995

14

ACP Exhibition

♦ ♦ ♦ * ♦

The Director of Environmental Protection, Dr Stuart Reed, will officiate at the opening of an exhibition on the Airport Core Programme (ACP) at 11.45 am on Monday (March 6).

The exhibition will be held at the Main Concourse of the Ocean Terminal in Tsim Sha Tsui. You are invited to cover the opening ceremony.

Also officiating at the ceremony will be the Chairman of Yau Tsim Mong District Board, Mr Chow Chun-fai, and the Chairman of the Sham Shui Po District Board, Mr Wong Chung-ki.

The exhibition will last for five days until March 10 (Friday).

It is the 10th exhibition organised by NAPCO since August last year to keep members of the public abreast of works progress of the 10 ACP projects.

More than 150,000 people have attended the previous nine exhibitions.

End/Friday, March 3, 1995

Article on salary of middle-level managers and professionals

*****

The average salary rate for middle-level managers and professionals in the past 11 years showed the highest percentage increase in the financial institutions and insurance sector as compared with that in other economic sectors. Analysed by occupational group, employees engaged in banking and insurance management enjoyed the highest rate of increase in salary rate.

This information is given in a feature article of the February 1995 issue of the Hong Kong Monthly Digest of Statistics.

The article analyses the findings of the Annual Survey of Salaries and Employee Benefits - Managerial and Professional Employees (Excluding Top Management).

15

The survey has been conducted every year by the Census and Statistics Department since 1984 to collect information about salary rates and fringe benefits of managerial and professional employees from about 200 large companies in selected major economic sectors.

The article also contains the average monthly salary rates in June 1994 for selected common occupations across different economic sectors, and also statistics on the entitlement of middle-level managerial and professional employees to various kinds of fringe benefits.

The February 1995 issue is on sale at $50 a copy. Purchase can be made at the Government Publications Centre on ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong.

Copies can also be purchased from the Publications Section of the Census and Statistics Department on 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Regular subscription can also be arranged with the Publications Sales Section of the Information Services Department (Tel: 2842 8804).

End/Friday, March 3, 1995

Ecology study in Deep Bay ♦ ♦ ♦ ♦ ♦

The Planning Department today (Friday) signed a consultancy agreement commissioning a firm to conduct a study on the ecological value of fish ponds in the Deep Bay area.

"The primary objective of the study is to establish the level of ecological value, both in qualitative and quantitative terms, of the fish ponds in the Deep Bay area to wildlife, especially waterbirds, and to the Deep Bay wetland ecosystem," a spokesman for the department said.

"The study will review the past ecological and land use changes in the area, including field investigations to collect scientific data on the ecology of the area so as to establish the baseline ecological profile including the components of the ecosystem and the interaction among these components.

16

’’The study will also assess the carrying capacity of the Mai Po Nature Reserve and the fish ponds in the ecosystem as well as the cumulative impact of changes of land uses in the area.

"Further, it will review the current Buffer Zone (BZ) concept which is the basis of development control in the area and identify alternative beneficial uses in the wetland area apart from fish farming. "The findings of the study will serve as a basis for reviewing the relevant provision and planning intentions of the land use zonings on the outline zoning plans in the area."

The study is initiated as a response to the challenge to ecological value of the existing fish ponds within the BZ areas by some developers who have proposed residential developments in the area.

The study team will comprise experts on wetland ecology, wetland conservation and management, ornithology and environmental planning.

The study will commence this month for completion in 17 months.

End/Friday, March 3, 1995

Yau Tsim fight crime carnival ♦ ♦ ♦ ♦ ♦

The 94-95 Yau Tsim District Fight Crime cum Anti-Narcotics Carnival will be held at the Kowloon Park Piazza tomorrow (Saturday) afternoon.

Organised by the Yau Tsim District Fight Crime Committee, the function will feature performances by pop song singers and the Royal Hong Kong Police Force Band.

Other activities include an exhibition on anti-burglary devices and antinarcotics information, stall games and a quiz.

Members of the public are welcome to join the carnival which will start at 3 pm.

An opening ceremony will be held at 2.30 pm.

17

Officiating guests of the ceremony will be the Commissioner for Narcotics, Mr Alasdair Sinclair; the Yau Tsim Mong District Officer, Mr Bart Ireland, and the Yau Tsim Police District Commander, Mr Chris Glover.

Attention News Editors:

Media representatives are invited to cover the opening of the 94-95 Yau Tsim District Fight Crime cum Anti-Narcotics Carnival which will be held at 2.30 pm at the Kowloon Park Piazza.

End/Friday, March 3, 1995

New pedestrian subway across Kwun Tong Road to be constructed * ♦ ♦ ♦ ♦

The Government is proposing to construct a new pedestrian subway across Kwun Tong Road near Ting Fu Street.

The opening of the subway will enable closure of the signalised pedestrian crossing in its proximity, thereby improving the traffic flow along Kwun Tong Road and enhancing the safety of pedestrians crossing Kwun Tong Road near Ting Fu Street.

The proposal includes the construction of a new reinforced concrete pedestrian subway with covered ramps and stairs at both ends.

A notice concerning the proposed work was gazetted today (Friday).

The project is scheduled to commence in July this year and will take about 20 months to complete.

The plan and scheme of the works can be seen at the following government offices:

* The Central and Western District Office, Public Enquiry Services Centre, Ground Floor, Harbour Building, 38 Pier Road, Central, Hong Kong;

• t

- 18 -

the District Lands Office, Kowloon East, 10th floor, Yau Ma Tei Car Park Building, 250 Shanghai Street, Kowloon and;

the Kwun Tong District Office, Kwun Tong District Branch Office Building, Tung Yan Street, first, third and fourth Floor, Kowloon.

Any person who wishes to object to the works or the use, or both, is required to address his objection in writing to the Secretary for Transport on or before the May 2, 1995.

End/Friday, March 3, 1995

Closure of North Point illegal structure sought * ♦ ♦ ♦ ♦

The Building Authority is seeking to close an unauthorised structure in North Point so that it can be demolished without endangering the occupants and the public. The single-storey structure used for dwelling is located on the flat roof of a building in 9IC Chun Yeung Street.

A notice applying for a Closure Order from the District Court under the Buildings Ordinance on July 7 was posted on the premises today (Friday).

Demolition work is expected to start as soon as the Closure Order is issued.

End/Friday, March 3, 1995

Study on redevelopment potential in metro areas ♦ ♦ ♦ ♦ ♦

The Planning Department has signed an agreement to commission a consultancy firm to undertake a study on the comprehensive assessment of redevelopment potential in the metro areas of Hong Kong Island, Kowloon, New Kowloon and Tsuen Wan - Kwai Tsing.

A spokesman for the department said today (Friday) that the main objective of the study was to assess the redevelopment potential in the metropolitan area for residential purpose and to estimate possible flat production from redevelopment.

19

"The study will establish a comprehensively designed, computer-based system that can facilitate rapid assessment of redevelopment potential under various circumstances.

"The existing policies, statutory and institutional frameworks and procedures which facilitate or impede private sector redevelopment will be reviewed.

"Moreover, key areas of high redevelopment potential will be identified and possible means for redressing the constraints for redevelopment in these areas will be broadly examined," the spokesman added.

The study began yesterday and will be completed by mid-1996.

End/Friday, March 3, 1995

Improvement to King George V Memorial Park

*****

The Architectural Services Department is inviting tenders for the improvement works for King George V Memorial Park in the Western district.

Works include the construction of an office block, a chess comer, a children’s play area, a seven-a-side soccer pitch, a basketball court and sitting-out areas, renovation of the existing garden, and geotechnical improvement works to the slopes. The project is expected to start in May for completion in a year.

Tender forms and further particulars can be obtained from the Architectural Services Department, 34th floor, Queensway Government Offices, 66 Queensway.

Tender offers will close at noon on March 24.

End/Friday, March 3, 1995

20

Construction of dolphin and sea-bed pipeline proposed

*****

The Government plans to permit an oil company to construct a dolphin and to lay an associated sea-bed pipeline at Kowloon Bay to provide additional mooring facilities for vessels to discharge and convey aviation fuels and lubricants through the pipeline to the fuel farm within the Hong Kong International Airport.

The work will be carried out within an area of about 3.35 hectares of foreshore and sea-bed at Kowloon Bay.

The work will begin after authorisation has been given under the Foreshore and Sea-bed (Reclamation) Ordinance and will be completed in about 10 months.

The extent of the area affected was gazetted today (Friday).

The notice and its related plan can be seen on notice boards posted near the site.

The plan can also be seen at the lands Department's Survey and Mapping Office, 14th floor, Murray Building, Garden Road, and at the Kowloon City District Office, first floor, Morning Joy Building, 141-143 Kau Pui Lung Road, To Kwa Wan, Kowloon.

The plan can also be purchased at the Survey and Mapping Office.

Any person who considers that he has an interest, right or easement in or over the foreshore and sea-bed involved may submit a written objection to the Director of Lands on or before May 3, 1995.

End/Friday, March 3, 1995

Government approves redevelopment in Tuen Mun

*****

The Government has approved in principle a comprehensive redevelopment in Area 5B, Tuen Mun.

The redevelopment programme will comprise residential/ commercial developments, a secondary school and Govemment/Institution/Community developments.

[Missing 2 pages in the original document]

23

The notice and its related plans can be seen on notice boards posted near the site. The plan can also be seen at the Lands Department's Survey and Mapping Office, 14th floor, Murray Building, Garden Road; and at the Yuen Long District Office, ground floor, Yuen Long District Branch Offices Building, 269 Castle Peak Road, Yuen Long.

Any person who considers that his interest, right or easement in or over the foreshore and seabed involved will be affected, may submit a written objection to the Director of Lands before May 3, 1995.

End/Friday, March 3, 1995

TOC exhibition opens tomorrow ♦ * * ♦ ♦

Teachers, parents and members of the public will be able to get a more comprehensive picture of exactly how Target Oriented Curriculum (TOC) will be taught and students assessed in Hong Kong's Primary 1 classes at the Education Department's roving exhibition which opens tomorrow (Saturday) at Cityplaza II in Taikoo Shing.

Sample pages of TOC learning packages, assessment forms and report forms will for the first time be displayed and a video will explain the concept and benefits of the curriculum.

Also for the first time, a list of the 76 schools that will adapt TOC in Primary 1 in Phase I of the scheme in September 1995 will be displayed at the exhibition.

The opening ceremony, which will take place at 1 pm at Centre Bridge, second floor, Cityplaza II, Taikoo Shing, will be officiated by the Director of Education, Mr WK Lam.

He will be joined by a large officiating party comprising educators and key personnel from major school sponsoring bodies.

They include: Mr Kenneth Ting, Chairman of the Curriculum Development Council; Mr Kenneth Mak of Po Leung Kuk; Mrs Angela Cheung of Tung Wah Group of Hospitals; Mr Lawrence Lo from the Catholic Education Office; Mr Timothy Ha, Secretary of the Anglican Diocesan Education; Mr S Y Chiu of the Buddhist Association; Rev C C Ng of the Hong Kong Council of the Church of Christ in China; Mr W K Lo of Sik Sik Yuen; and Major Laurence Hay of the Salvation Army.

24

The roving exhibition will be staged over a 10-day period at five popular shopping arcades throughout the territory: second floor, Cityplaza II on 4 and 5 March; pedestrian deck outside the cinema at Lok Fu Shopping Centre Phase II on March 6 and 7; Entrance Arena at Sha Tin New Town Plaza I on March 8 and 9; Level 2 shopping arcade at Metroplaza in Kwai Fong on March 10 and 11; and entrance exhibition hall at Yuen Long Plaza on March 12 and 13.

Education Department officers will be available to answer questions on TOC from visitors daily between noon and 7 pm.

The roving exhibition represents part of the Education Department's effort to inform the teachers and members of the public about the concept and benefits of TOC which will be fully implemented in Primary 1 classes in Hong Kong in September next year.

Also starting tomorrow will be a total of 83 district seminars on TOC for parents in 14 locations throughout the territory.

A spokesman for the Education Department said the roving exhibition would be like a mobile showroom on TOC.

"Teachers and other members of the public are strongly encouraged to visit the exhibition to get a picture of the new initiative that will affect the learning of young school children in Hong Kong," the spokesman said.

"In particular, parents of Kindergarten 3 pupils who have to select schools for their children by March 13, 1995 for central allocation of Primary 1 places are advised to visit the exhibition."

Attention News Editors:

Media representatives are invited to cover the opening ceremony of the TOC roving exhibition at 1 pm tomorrow (Saturday) at Centre Bridge, second floor, Cityplaza II, Taikoo Shing.

The Director of Education, Mr W K Lam, will officiate at the ceremony.

End/Friday, March 3, 1995

- .

[Typographical errors in the original document]

DAILY INFORMATION BULLETIN

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

Saturday, March 4,1995

Contents PageJNo.

Anti-drug summit meeting to call for community joint effort.......... 1

ICC members exchange visits..........................................

Lion Rock Tunnel Road to be fully re-opened.......................... 2

Pleasure vessels advised to stay out of busy waters.................. 3

More villages get metered water supply............................... 5

Electors reminded to vote tomorrow................................... 5

Failure to pay wages on time cost fine...............................

Entries for Outstanding Volunteer Awards invited..................... 7

Fresh water cut in Causeway Bay...................................... 8

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

1

Anti-drug summit meeting to call for community joint effort ♦ * * ♦ ♦

The Governor's Summit Meeting on Drugs is to plan a community-wide education and support effort to try to halt the growing trend in drug abuse by young people, the Commissioner for Narcotics, Mr Alasdair Sinclair, said today (Saturday).

Speaking at the opening of the Yau Tsim District 94-95 Fight Crime cum AntiNarcotics Carnival at Kowloon Park, the Commissioner said the summit, to be held next Monday (March 6), would provide a stimulus to the work already being undertaken in the area.

"It will raise awareness of the seriousness of the issue. It will improve understanding of the nature of the problem, the ways it is being tackled, and the contribution individuals can make to reducing it," Mr Sinclair said. "It will initiate new thinking on what can be done to prevent young people abusing drugs," he added.

The summit will probe four different aspects, namely law enforcement, preventive education, treatment and rehabilitation, and research.

"Nineteen speakers of authority will contribute their experience. There will be time for open discussion of each topic to collect a wider range of views and advice," the Commissioner said.

About 250 people will take part in the summit. They include members of the Legislative Council, District Boards, District Fight Crime Committees, senior Government officials, members of the Action Committee Against Narcotics, and representatives of voluntary agencies, the education sector, social welfare and youth organisations.

Mr Sinclair noted that on-going efforts in preventive education and publicity were made by the Narcotics Division throughout the year.

"Take March for example. There will be 47 talks to school children at all levels from Primary Six upwards, three drug education workshops for trainee teachers, and a seminar on drug abuse among adolescents for social workers and student social workers," he said.

There will also be a television show on March 10, two exhibitions in public housing estates, and a huge drawing at Victoria Park on March 19, he added.

End/Saturday, March 4, 1995

2

ICC members exchange visits

♦ * ♦ * *

The Secretary for Planning, Environment and Lands, Mr Tony Eason, and other members of the Infrastructure Co-ordination Committee will leave tomorrow (Sunday) for a visit to Zhuhai and Shenzhen from March 5-7.

Chinese members of the ICC will join them on the visit which will include briefings on major infrastructure projects in Zhuhai and Shenzhen and site visits.

The two teams will continue their visit programme in Hong Kong which will include briefings and visits to the Lok Ma Chau Border Crossing, Mai Po Nature Reserve and Blackpoint in Tuen Mun on March 8 and a seminar on March 9.

Attention News Editors:

Mr Eason will see the press before his departure tomorrow (Sunday).

Media representatives covering the event should assemble at 1.30 pm tomorrow at the arrival hall of the China Ferry Terminal on the second floor of the terminal building in Canton Road, Tsim Sha Tsui.

Staff of the Secretariat Press Office will be on hand to assist.

There will also be press facilities to cover the Hong Kong visit and seminar on March 8-9. Details of the arrangements will be announced next Tuesday.

End/Saturday, March 4, 1995

Lion Rock Tunnel Road to be fully re-opened

*****

The Lion Rock Tunnel Road section between the toll plaza and Sha Tin Road is scheduled to be fully re-open to traffic starting at 6 am on Monday (March 6) upon completion of reconstruction works.

The Transport Department announces that in conjunction with the full reopening of the road, the speed limit along this section of the road will be raised from the existing 50 kilometres per hour to 70 kilometres per hour.

3

A spokesman for the department said the bus only lane which was temporarily suspended in April last year when reconstruction work started would be reprovisioned and improved.

The existing bus only lane along Hung Mui Kuk Road will link up the Lion Rock Tunnel road bus only lane to provide a continuous bus priority route from Che Kung Miu Road to the Lion Rock Tunnel approach road.

The bus lane is, however, slightly modified near the toll plaza to allow for auto toll lane weaving movements.

All vehicles, except franchised and non-franchised buses, are prohibited to enter the bus only lane between 7 am to 10 am and 4 pm to 7 pm daily except Sundays and public holidays.

Appropriate traffic signs and road markings will be installed to advise motorists.

The spokesman said whilst the Lion Rock Tunnel Road was to be fully reopened, commuters were still advised to make the best use of public transport and to plan their journeys in good time to avoid overloading the Lion Rock Tunnel Road, especially in the morning peak period.

"The Transport Department would like to thank motorists and commuters for their patience and co-operation throughout the reconstruction period which helped to keep the traffic disruption to a minimum.

"With the upgrading and improvement of facilities, they should now enjoy a safer and smoother journey along this road," the spokesman said.

End/Saturday, March 4, 1995

Pleasure vessels advised to stay out of busy waters

*****

The Director of Marine, Mr Ian Dale, urged pleasure boating to keep out of the central and western harbour area as it is very dangerous for small pleasure boats.

Speaking at the opening of the Hong Kong International Boat Show 1995 in Sai Kung this (Saturday) morning, Mr Dale said that ocean-going commercial shipping and pleasure boats did not easily mix.

4

•'It is safer to enjoy your pleasure boating in the calm scenic waters of our eastern shores," he advised.

He stressed that the Marine Department had a clear role to play in facilitating the safe and orderly development of recreational boating.

"My department's overriding concern is to ensure that pleasure boating can be enjoyed by all in safety," he added.

Noting that the sea is not man's natural environment, Mr Dale said that safety must be accepted as the most important aspect of boating.

"When we venture out on it either for pleasure or work, we must put safety at the head of our lists of things to check. Safety for ourselves and others must be our first and last concern," he said.

Mr Dale pointed out that while the Marine Department provided the regulatory framework to lay down basic safety standards for vessels and crews and the Marine Police provided an overseeing role to check that standards were maintained, the real and practical responsibility must rest with the vessel's owner and coxswain.

His advice to the owners and coxswains of pleasure vessles is:

* learn, and follow the rules;

* make sure everyone on board understands what to do in an emergency;

apply common sense and an understanding of the needs of other users of

water.

Mr Dale further advised them to make sure the "SURE" (Sense, Upkeep, Rules and Equipment) guideline was observed.

* Sense - use common sense, check the weather, number of people on board, plan the route.

. . * Upkeep - check the boat in good condition.

* Rules - learn the rules of the road and apply it at all times.

Equipment - check you have all the right safety equipment on board, and that everyone knows how to use it.

The International Boat Show 1995 is the largest event of its kind in Hong Kong since 1982. More than 40 manufacturers from all over the world take part in this year’s show.

End/Saturday, March 4, 1995

5

More villages get metered water supply *****

Over 240,000 villagers in 632 remote villages are provided with metered water supply by the Water Supplies Department since it began its first village supply project in 1980.

Speaking today (Saturday) at a tap-turning ceremony marking the provision of metered fresh water to four villages in the Ha Tsuen district, the Director of Water Supplies, Mr Hu Man-shiu, said the number of remote villages to be connected to the department’s water supply system would be increased to 708 by mid-1998.

"At present, construction work for water supply to 22 villages, design work for 34 villages and planning work for 20 villages are being carried out," he said.

Mr Hu added that the Government had spent about $14 million to construct the water network for four villages in the Ha Tsuen district.

"Sheung Pak Nai and Ha Pak Nai, Ngau Hom Shek and Ngau Hom Sha, being located farthest from the water supply system, are the last four villages in the Ha Tsuen district to be provided with metered water supply.

"Adequate water supply can only be made available to the area after the substantial completion of new water mains network in Tin Shui Wai New Town late last year," Mr Hu explained.

End/Saturday, March 4, 1995

Electors reminded to vote tomorrow

*****

The Registration and Electoral Office (REO) today (Saturday) reminded all registered electors that the polling hours of the Municipal Council elections tomorrow (Sunday) will be from 7.30 am to 10.30 pm.

An REO spokesman said an elector was only required to bring along his Identity Card to the Polling Station. But it would facilitate the polling proceeding if he could also bring along the poll card sent to him earlier.

A total of 377 polling stations will be opened on the polling day.

6

"The ballot is secret. No one can force a person to vote or not to vote for any particular candidate; and no one is required to tell which candidate he has voted for or is going to vote for," he said.

The spokesman also reminded electors that they should mark a "tick" sign in the circle space opposite the name of the candidate for whom he wished to vote.

He should then fold the ballot paper to conceal the mark and come out of the polling booth.

The folded ballot paper should then be put into a sealed ballot box in the presence of a polling staff, after which the elector should leave the polling station without undue delay.

To maintain free and safe passage for electors, a restricted canvassing area may be set up outside a polling station to regulate canvassing activities.

"Such an area would ensure that electors would not be unduly harassed on their way to the polling station, while allowing each candidate a fair chance of promoting himself," he said.

Of the 377 polling stations opened, 144 are accessible to the physically handicapped. Fifty-three physically handicapped electors have been reassigned to eight specified polling stations to vote.

Of the 59 constituencies, seven are uncontested. There are a total of 135 candidates.

The three members of the Boundary and Election Commission will visit polling stations throughout the territory to observe the conduct of the elections.

"It is the responsibility of the Commission to ensure that elections are conducted openly, honestly and fairly," the spokesman said.

End/Saturday, March 4, 1995

7

Failure to pay wages on time cost fine ♦ ♦ ♦ ♦ *

The Labour Department today (Saturday) urged employers to pay wages to their employees within the time limit allowed by law.

The owner of Anderson & Ashe Limited in Mong Kok was recently fined $45,000 by the Kwun Tong Magistracy for failing to pay wages to three employees within seven days after the termination of their service.

Labour Officer (Prosecutions) Mrs Tonia Leung said Section 25 of the Employment Ordinance stipulated that on termination of a contract of employment, wages and any other sums due to the employee had to be paid as soon as practicable but in any case not later than seven days after the day of termination.

"Moreover, under Section 23 of the Ordinance, wages are due at the end of the wage period and must be paid as soon as practicable but in any case not later than seven days," she added.

Any employer who fails to comply with these statutory obligations will commit an offence and be liable to a maximum fine of $200,000 and imprisonment for 12 months.

End/Saturday, March 4, 1995

Entries for Outstanding Volunteer Awards invited

*****

Young volunteers will have an opportunity to visit Singapore and Malaysia during the summer vacation under the 1995/96 Overseas Exchange Award for Outstanding Youth Volunteers Scheme.

The scheme, jointly organised by the Social Welfare Department and the Hong Kong Council of Social Services, is aimed at commending outstanding youth volunteers for their contribution and commitment to the society.

"We welcome young volunteers aged between 16 and 24 to participate in this programme. Candidates must have experience in volunteer work and should be nominated by their schools or serving agencies," a spokesman for the Social Welfare Department said today (Saturday).

8

"A total of 14 awardees will be offered a free trip to Singapore and Malaysia to widen their international perspective as well as to meet their counterparts and share experience on voluntary work," he added.

The panel of adjudicators consists the Chairman of the Commission on Youth, Mr Eric Li; the Assistant Director of the Hong Kong Council of Social Services (Agency Service), Miss Virginia Chan; the Assistant Director of Social Welfare (Youth and Rehabilitation), Mr Anthony Chan; and the Chairman of the Organising Committee of Overseas Exchange Award for Outstanding Youth Volunteers 1995/96, Mr Chan Ping-wah.

Interested participants may contact their agencies or call the Organising Committee at 2892 5119 for further details. Nominations will be closed on April 7 (Friday).

The scheme is sponsored by the Sir Robert Black Trust Fund.

End/Saturday, March 4, 1995

Fresh water cut in Causeway Bay *****

Fresh water supply to some premises in Causeway Bay will be temporarily suspended from 11 pm on Monday (March 6) to 6 am the following day to facilitate water mains leakage detection.

The suspension will affect all the premises at 256-281 Gloucester Road, 470-532 and 477-539 Jaffe Road, 485-545 and 486-556 Lockhart Road, 483-555 Hennessy Road, 1-5 Great George Street, 2-46 Percival Street, Cannon Street and East Point Road.

End/Saturday, March 4, 1995

9

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

Imillion Time (hours) Cumulative change ($ million)

Opening balance in the account 1,866 09:30 +824

Closing balance in the account 1,235 10:00 +824

Change attributable to: 11:00 +824

Money market activity +824 11:30 +824

LAF today -1,455 15:00

LAF rate 4.25% bid/6.25% offer TWI 119.4 *-0.4* 4.3.95

End/Saturday, March 4, 1995

DAILY INFORMATION BULLETIN

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

Sunday, March 5,1995

Contents Page No,

Transcript of the Governor’s media session in a counting station.......... 1

Transcript of the Governor’s media session outside press centre.............. 4

HK manages elections with considerable success............................... 7

Transcript of the Governor’s media session after visiting polling station. 9

Transcript of Chief Secretary’s media session............................. 11

Voter turnout rate this morning encouraging................................. 12

Baroness Dunn urges electors to exercise their right........................ 12

BEC satisfied with overall voter turnout number............................. 13

Secretaries pleased with voter turnout...................................... 14

BEC Chairman urges physically handicapped electors to vote.................. 15

Record number of candidates contest Municipal Council elections........... 16

/Constitutional Affairs.....

Contents

Pagefr.o,

Constitutional Affairs Secretary calls on residents to vote...................... 17

Voter turnout exceeds last MC elections..................................... 18

Go to the polls: Urban Services Director.................................... 18

BEC closely monitors election activities......................................... 19

Schools reminded to return questionnaires on DSS................................. 19

Stamps feature international sport events........................................ 20

"Peace In My World" poster contest............................................... 22

Leaflets to promote family services............................••................ 23

1

Transcript of the Governor’s media session in a counting station *****

Transcript of the Governor the Rt Hon Christopher Patten's media session after visiting a counting station in Wan Chai:

Governor: First of all, I'd like to congratulate Justice Woo and the Boundary and Election Commission for organising once again a successful day for Hong Kong. I'd like also to thank all those returning officers and every one else who has helped with the arrangements for today’s polling of the Municipal Council Elections. As you know, the overall result, I'm not talking about who wins which contest, but the overall result for Hong Kong is a good one. We've seen a higher turnout than the last Municipal Council Elections. Perhaps, more significant since we now have a record voter registration, a higher turnout has meant a very much larger number of people who have voted. Altogether about 168,000 more people have voted in these Municipal Council Elections than in the last one in 1991. That's an increase of over 40 per cent. It's also interesting that in the two District Board By-elections today, the turnout was actually higher than it was in the District Board Elections last autumn. So, I think that's an indication of the continuing interest of the people of Hong Kong in civic issues, in helping to put their stamp on the way Hong Kong is run and helping to affect the way day to day issues are dealt with. There were a couple of unfortunate incidents, I understand, involving scuffles around polling stations. Obviously those are matters for the Police and all of us regret that they have happened. But I think it's important to keep this sort of things in context and if you compare what had happened in some other communities where they held elections in the very peaceful way, an orderly way in which by and large we conducted our elections in Hong Kong. I think that does give you a further piece of evidence that these elections are part of Hong Kong' stability and demonstrates how mature and moderate people of Hong Kong are.

Question: There are two cases of scuffles, could you see it as rivalry between proBeijing faction and pro-democracy?

Governor: I don't want to comment on individual parties or disagreement that individual parties have. But by and large, however strong the feelings of individual parties and individual candidates, the argument has been kept within the bounds of civilised debate. That is something which has been a hallmark of political development here in Hong Kong. I repeat that one should perhaps compare what happens here with what happens in some other communities. I think you then realise that we don't have too much to worry about.

Question: Do you think the scuffles will., to China and suggest that more direct elections can create chaos?

2

Governor: No.

Question: Could you elaborate?

Governor: I’ve pointed out that two scuffles should be kept in context while they’re regrettable. I think you should compare the way we’ve held elections with the way little sort of things that happened in other communities. As I said earlier in the day, there are some communities where they’ve only able to have elections with the help of UN police and forces. So I think people should keep these things in context.

Question: Why there is lower voter turnout in rural areas?

Governor: I’m not sure. You have to ask the individual candidates I think. There may well be particular local reasons why the turnout is lower in some areas than others, why there are differences between urban areas and rural areas. But I don’t think that you can generalise if you are answering a question on individual turnout of a constituency.

Question: While we know Hong Kong is not like Cambodia where UN officials....we didn’t see any scuffles in the last District Board Elections.?

Governor: I do think, though I haven't had full reports on these two incidents, I do think that you should keep them in context. We had today a record number of people voting in Municipal Council Elections. It’d been a lovely day. The people of Hong Kong have taken this further development in the political life of the territory completely in their strides. In a couple of cases, people extremely ill-advisedly seemed to have lost their tempers. But I don’t think that the behaviour of a handful of people should be held against the over half a million who voted and who went about their business for the great degree of consciousness. We’ve had, I think, probably a livelier campaign with the Municipal Council Elections than we’ve ever had in Hong Kong before, certainly a record number of candidates competing for votes from a record number who have registered to vote. While a couple of incidents are regrettable, I really don’t think you should turn them into the equivalent of Pearl Harbour.

Question: Two elections have already passed. One more to go. What messages have you got to....

3

Governor: I don’t think it’s a question of me sending messages. I think the messages are for the people of Hong Kong. What we've seen in the District Board Elections, in the Municipal Council Elections is many more people, hundreds of thousands more people in Hong Kong, taking the opportunity of behaving with civic consciousness and putting their own stamp on the sort of community that they want to live in. We’ll see that further in the Legislative Council Elections in the autumn. I’m sure we'll have a vigorous campaign in the run up to those elections with everybody representing every point of view, including some points of view which Peking officials would find themselves in sympathy with, representing every point of view and putting those points of view before the electors, for the judgement of the electors. Now that is just an aspect of Hong Kong's maturity. The fact that it'd done on the whole in such a moderate and sensible way shouldn't surprise anybody, because this is one of the most sophisticated, well educated, prosperous, successful communities in the world. I've said earlier that that development doesn’t represent a threat to anything or anybody. It doesn't represent a threat to Hong Kong's stability. Look at how stable we are and how prosperous we are today, nor does it represent a threat to anybody else's community or anybody else's stability. It’s part of the maturing of this great territory. I hope that what has happened will help some people who appear not to have done so in the past to trust Hong Kong.

Question: Mr Li Peng said in his speech to the NPC that he was looking forward to Britain honouring the Joint Declaration and co-operating with China. What's your reaction to that?

Governor: We've seen the Government honouring the Joint Declaration today. This is part of what the Joint Declaration promised the people of Hong Kong. I very much hope that all of us can look forward to greater co-operation between Britain and China in the interest of Hong Kong. That's what all of us want to see. Of course, cooperation involves people grasping your hand when you put it out to them. So I trust that the Prime Minister's words will be reflected in actions and in the interest of the people of Hong Kong during the next two and a half years and beyond. I think that we've achieved a very great deal in Hong Kong. We've laid the foundations for an immensely successful future for the SAR. It's what all of us want to see. We’ve more likely to see it if we have positive and constructive co-operation from China in the JLG and elsewhere and I trust that we can look forward to that. I hope today will be the beginning of spring. Thank you very much.

End/Sunday, March 5, 1995

4

Transcript of the Governor's media session outside press centre *****

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting the Press Centre for the Municipal Councils elections at the City Hall this (Sunday) afternoon:

Governor: I went to Yuen Long this morning to see the polling there and the figures that we heard this morning have been continued pretty well through the day. The turnout is fairly consistently higher than it was in the last Municipal Council elections. Perhaps even more significantly with a record voter registration this year, the actual number of people voting is very substantially higher, about 95,000 more people have voted by 4:30 pm than last time. And we're well on our way to passing the number who voted in 1991. There's still over five hours to go of what's been a beautiful sunny day. So I hope that everyone will take the chance of getting out and voting in these elections for their Municipal Councils which do an important job in Hong Kong, and I am sure that many people will want to put their imprint on the work of the councils over the next few years. The arrangements seem by and large to have gone even more smoothly in the Municipal Council Elections than in the District Board elections. There's still some time to go. But we're obviously learning some lessons very rapidly. And as I say by and large the elections have been as well conducted as they would be, I think, anywhere in the world. And that's a great credit to all the officials, all the civil servants and all the parties and candidates who've been involved. So, so far, so good. But five hours to go. And I hope that those who haven't yet voted will leave the television or whatever else they are doing for a few minutes and go down to the polling stations and cast a vote.

Question: What, do you think, would you hope Beijing will learn from this?

Governor: I think it's for people to take their own lessons, but clearly, candidates who would customarily associate themselves with some of the views expressed by Peking officials have taken an active part in this campaign. I think everybody welcomes that. It's important that all points of view are reflected in the campaign. And I think that what everybody knows is that conducting elections like this isn't a threat to anybody. Hong Kong manages these things by and large with considerable moderation and considerable success. What we're talking about is people having some influence over the day-to-day decisions that affect their lives. And I think that's something that should be welcomed here and everywhere else. So I hope that this will be one of the paving stones back to a more co-operative relationship in the last and important months and years of transition. I hope that we'll be able to say when we look back on today's elections that they've been as good a day for Hong Kong as the District Board elections polling day was.

5

Question: What is the factor for this high rate?

Governor: I think the main reason for the increasing number of people voting, if you look at the DB elections, if you look at the MC elections, is that people are not in any dangerous way; people are steadily more interested in having a say about the way their own lives are shaped. Obviously, people have been interested in the issues raised in the campaign. There have been some interesting, important debates. But, by and large, candidates have been talking about street comer, neighbourhood issues. And they involve people in that and that's why I think more people come out to vote. Clearly, the weather is a help as well. It's easier to go out to vote when the sun's shining than when it's pouring with rain. But nevertheless, I think overall this is part of the steady, unthreatening, maturing of this community and this society. And I think that should be welcomed. What I always think is surprising is when you go along to a polling station on a day like this, when you see Hong Kong conducting an election as maturely as this, you think to yourself what's all the fuss been about ? What's the big deal ? Hong Kong is capable of taking these sorts of things in its stride. One of the most sophisticated, one of the most successful, one of the most stable, one of the most prosperous communities in the world, of course, we can conduct things like the Municipal Council elections or DB elections or in the autumn Legislative Council elections without them being any threat to anybody, with them being part of the fabric of our society and of our Government.

Question: Do you think the high rate reflects a kind of degree of maturity in this civil mind of the people and so that becomes one of the threats that Beijing has to consider when .... constitutional affairs?

Governor: I don't think that any of us can make final judgments about the rate until 10.30 pm. There is still some time to go. And there are a lot of people who still haven't voted. But I think that it is important to look not just at the percentage turnout, but to remember that we're holding these elections against the backdrop of record registration of voters. So what's interesting is to see the absolute number of people who are going out and voting. And it's a very considerable increase and I have said in reply to two previous questions some of the reasons why I think that's happened. I think it is a totally natural development in a community like Hong Kong.

Question: About the incident this morning, what sort of appeal....

6

Governor: I think everybody regrets any scuffles or punch-ups in the margins of polling day. I am sure the parties will want to ensure that its supporters, however enthusiastic they become, keep their enthusiasm within the bounds of vigorous politeness. You and I, I am sure, know that other communities, when they conduct elections, do it with rather more than the odd punch-ups. There are other communities not far from here where they have to have elections with UN policemen and others to make sure that it goes all right. In Hong Kong, I would guess that the amount of violence associated with politics and political campaigning is miles below the level that you find virtually everywhere else in the world, and that, again, is an aspect of the fact that this is a very stable, very mature, very sophisticated, very well-educated, very grown-up community. Any others?

Question: In what way do you think the Government should review about this kind of violence happen in election?

Governor: If this is a punch-up or two, that’s a matter for the police and the courts. On the whole, as you know, the Government through the funding of the police, through the encouragement of the fight crime committees, and in other ways, helps to ensure that the level of crime in this community is well below that almost everywhere else in the world.

Question: Can we say in London the violence associated with politics is more serious than in Hong Kong?

Governor: I have seen in the UK from time to time political activities that are rougher than anything I have seen in Hong Kong in the last three years. But equally I have seen on my television screen much worse pictures from elsewhere in Europe, from North America and from other parts of the world. What I am saying is that a scuffle or two, though extremely regrettable and a cause of concern, shouldn't be got out of perspective. This is a community which carries out, which conducts political debate often on issues which people feel passionately about, conducts political debate in a very mature and calm and responsible way. Last question.

Question: Why did you repeatedly using the word "threats" or "threaten" ? Who do you have in mind you may feel threatened, in what ways do you think he's threatened?

7

Governor: Sometimes, when we've talked about these issues in the past, some pro-Peking newspapers and some Chinese officials have given the impression that they think that honouring the Joint Declaration in the development of Hong Kong's governing institutions is in some way a threat either to Hong Kong's stability and prosperity, or perhaps to other things. And I was just pointing out that what has happened today is about as threatening as a pussy cat. I mean this is an example of a mature society, deciding sensibly in a civilised way how its local affairs should be run.

Question: How would you explain about Sir Hamish's budget proposal not including the 1996-97 budget to consult with the Chinese side?

Governor: Well, that was last week's question, which was asked on a number of occasions, and like Sir Hamish Macleod, I think that this is an issue which is best discussed in the Joint Liaison Group. Everybody knows that I set out in my speech to the Legislative Council last autumn proposals for consultation and co-operation with the preparatory committee and with Chinese officials over the budget and over the financial arrangements for Hong Kong in the future. That was set out with the very best intentions of Hong Kong in mind. We put those proposals in considerable detail to the Chinese side in November. We discussed them in the December JLG. And 1 think it would be sensible to go on discussing them in the JLG rather than to turn them into an unnecessary argument over the airwaves. I just hope that every future Financial Secretary, both before 1997 and after 1997, will produce as successful budgets as Sir Hamish Macleod has done. Thank you very much.

End/Sunday, March 5, 1995

HK manages elections with considerable success * ♦ ♦ ♦ ♦

Hong Kong manages its elections by and large with considerable moderation and considerable success, the Governor, the Rt Hon Christopher Patten, said this (Sunday)afternoon.

The elections have been as well conducted as they would be anywhere in the world, Mr Patten added.

The Governor was speaking after visiting the Press Centre set up in the City Hall for the Municipal Council elections.

8

Mr Patten said the actual number of people voting was very substantially higher, and "we are well on our way to passing the number who voted in 1991," he added.

In reply to a question, Mr Patten said: "I think it's for people to take their own lessons, but clearly, candidates who would customarily associate themselves with some of the views expressed by Peking officials have taken an active part in this campaign.

"And I think that what everybody knows is that conducting elections like this isn't threat to anybody. Hong Kong manages these things by and large with considerable moderation and considerable success."

People were steadily more interested in "having a say about the way their lives are shaped", the Governor said.

Commenting on the report of scuffle, Mr Patten said: "I think everybody regrets any scuffles or punch-ups in the margins of polling day.

"I am sure the parties will want to ensure that its supporters, however enthusiastic they become, keep their enthusiasm within the bounds of vigorous politeness.

"I would guess that the amount of violence associated with politics and political campaigning (in Hong Kong) is miles below the level that you find virtually everywhere else in the world, and that, again, is an aspect of the fact that this is a very stable, very mature, very sophisticated, very well-educated, very grown-up community."

The Governor appealed to prospective voters to come out to cast their vote.

He said: "And I hope that those who haven't yet voted will leave the television or whatever else they are doing for a few minutes and go down to the polling stations and cast a vote."

End/Sunday, March 5, 1995

9

Transcript of the Governor's media session after visiting polling station *****

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting the polling station at Lutheran Primary School, Yuen Long, this (Sunday) morning;

Governor: Morning. I am pleased to see the election arrangements, proceeding as smoothly and efficiently as ever. It's good to see people turning out on a fine day to vote for the Municipal Councils. The last turnout figures, I saw for the whole of Hong Kong at 11.30, suggested that almost 40,000 more people had voted than at the similar time in the Municipal Councils elections in 1991. So I hope that stays up and that we have a good turnout today. The Municipal Councils do an important job and I hope that as many people as possible vote to put their stamp on the policies of the Municipal Councils in the years ahead.

Question: Do you think it is a smooth election as some supporters in Kwun Tong District fight each other?

Governor: I think there was a bit of trouble in one district, but overall, the arrangements have gone as smoothly as they always do in Hong Kong. This is an extremely responsible and moderate community, and as ever people are going about their duty as citizens in a very competent and moderate way. But where there is trouble, it obviously has to be dealt with.

Question: How to avoid this kind of fighting or... affecting the clean election?

Governor: I think that in elections anywhere in the world, there is from time to time a bit of trouble when people get very excitable at the polling booths. Perhaps the remarkable thing about Hong Kong is that there's as little trouble as there is.

Question: Governor, about the village representatives in Yuen Long, you are now in a place that native villagers and in a lot of villages, they still not agree to have one person one vote...village. How do you feel about that is it fair to the both sex?

Governor: I want to have a look at the details of the particular case before commenting on it.

Question: Are you optimistic of today's voting rate?

10

Governor: I hope that we'll have more people voting in Hong Kong today than in the last Municipal Councils elections. Traditionally what's happened is that the turn-out rate in the Municipal Councils elections has been lower than for the District Board elections, and the situation is likely complicated this time as well by two factors. First of all by the fact that we got a record number of candidates for the Municipal Councils elections. Secondly that the voter registration is at a record level. So in order to have the same percentage turnout, you need to have a lot more people voting. In the District Board elections, we did have a lot more people voted, a record number of voters in District Board elections. It will be interesting to see how today's turnout for the Municipal Councils election compares with the 393,000 people who voted in 1991. But as I said, I hope that as many people as possible will exercise their right to vote.

Question: There is a criticism that about the Municipal Election has become politicised. What is your comment on that?

Governor: I think that the elections for Municipal Councils inevitably everywhere in the world have some politics about them. After all, the councils are talking about very important sendees and the expenditure of large amounts of money. And whether that's political with small "p" or a large "P", there is an element of politics about it. But I think that the electorate are sensible enough to choose the right men and women for the important job that needs to be done, and I am sure that they will weigh in the balance both the overall approach of the parties to which candidates belong if they do belong to parties rather than are independent, and will also weigh the individual qualities and the record of service to the community of the individual candidates.

Question: Up to now are you satisfied with the voting rate?

Governor: Up to now, the voting rate is higher than it was in the Municipal Councils elections in 1991. So I am reasonably pleased about that. But we obviously won't be able to get a better picture until much later in the day. I think historically it's been the case that the period of most rapid voting is in the early evening. All I would say is that I hope people will remember that this is an important day for the Government of Hong Kong and an important day for the provision of a lot of the services that people take most for granted. So I hope that they will turn out and express their views on the way Municipal Councils should be run. Okay?

End/Sunday, March 5, 1995

11

Transcript of Chief Secretary’s media session ♦ ♦ ♦ ♦ ♦

Following is the transcript of Chief Secretary Mrs Anson Chan’s media session after visiting the Press Centre for the Municipal Council elections and District Board by-elections today (Sunday):

CS: I’ve just cast my vote. Today is Sunday. It's a splendid sunny day. So, just the right day to cast one's vote. I've been looking at the figures, if you compare the figures with the elections in 1991, I think the voter turn-out so far is quite encouraging. Of course, I would urge all voters to turn out to vote and there's still so many hours to go. The Urban Council and the Regional Council provide very essential services in terms of health facilities and a whole range of cultural and sporting facilities. So I very much hope that all those registered voters will turn out to vote today.

Question: There's a fight this morning in Sau Mau Ping. You're probably aware of that. What sort of appeal you have?

CS: I would urge the voters to maintain law and order. I think that on this occasion, it was the supporters who got into a sort of a tussle. It's important to maintain law and order. Also, I think, not to affect other people who might want to vote and who might be put off by this disturbance, so I'd just urge everybody to maintain calm and maintain law and order.

Question: Do you know what sparked off the fight?

CS: I don't know. I haven’t seen the details but I assume it was two groups of supporters, maybe just losing their temper. I think it’s just essential to maintain law and order and not to get too carried away.

End/Sunday, March 5, 1995

12

Voter turnout rate this morning encouraging ♦ ♦ * ♦ ♦

The Chief Secretary, Mrs Anson- Chan, said the voter turnout at the Urban and Regional Councils elections so far this (Sunday) morning was quite encouraging as compared with the case in 1991. She was commenting on the elections after visiting the Elections Press Centre at the City Hall.

"I've just cast my vote. Today is Sunday. It's a splendid sunny day. So, just the right day to cast one's vote," she said.

"Of course, I would urge all voters to turn out to vote and there's still so many hours to go.

"The Urban Council and the Regional Council provide very essential services in terms of health facilities and a whole range of cultural and sporting facilities. So I very much hope that all those registered voters will turn out to vote today."

Replying to a question about an incident this morning in the Shun Sau constituency in Kwun Tong, she stressed the importance of maintaining order during the elections.

End/Sunday, March 5, 1995

Baroness Dunn urges electors to exercise their right

*****

Hong Kong citizens have come to understand the importance of selecting their own elected representatives, particularly for the Municipal Councils whose work touched the daily lives of Hong Kong people, the Senior Member of the Executive Council, Baroness Dunn, said.

"So I hope that all those who have registered will come out and exercise their right and their duty actively today," she said.

Speaking to reporters after casting her vote at the Raimondi College polling station today (Sunday), she said it was a milestone in the history of Hong Kong's political development.

13

"For the first time there has been a record number of registered candidates and there has been a record number of registered voters. Over two million voters have registered," she said.

When asked about the Kwun Tong incident this morning, she said: "If we want our elected system to be a success, all those who participate in the system, whether as candidates, voters, or those who support different candidates, must respect the rules and the regulations of an elected system," she said.

Up to 2.30 pm this afternoon, 225,862 registered electors have gone to the polls, as compared with 158,918 in the 1991 elections.

End/Sunday, March 5, 1995

BEC satisfied with overall voter turnout number *****

The Chairman of the Boundary and Election Commission, Mr Justice Woo Kwok-hing, said the Commission was very satisfied with the overall voter turnout at yesterday's Municipal Councils elections.

He was briefing reporters early this (Monday) morning at the press centre after the close of poll.

"A total of 561,943 voters have cast their votes in the MC elections. This represents 25.8 per cent of the total number of voters. There has been an increase both in terms of absolute number and the turnout rate when compared to the corresponding figures in the 1991 MC elections," Mr Justice Woo said.

"The number of voters has increased by 168,011 and the turnout rate has also increased by 2.7 per cent."

As far as the District Board by-elections are concerned, the figures were as encouraging, Mr Justice Woo said.

"Some 2,064 votes (28.1 per cent) were cast in the Yau Ma Tei Constituency and 3,147 votes (41.3 per cent) in the Lower Ngau Tau Kok Constituency," the Chairman said.

14

Mr Justice Woo noted that these figures were again higher than those in the last District Board elections in the respective constituencies.

On the operation of the elections today, Mr Justice Woo said things went smoothly and "we are quite happy with the arrangements at the various polling stations".

He attributed the success of today's elections to the effective publicity at the central and district levels, active campaigning by the candidates, a better understanding of the elections by voters and the good weather.

The Commission would learn from the experience and plan for the Legislative Council elections in September, Justice Woo added.

End/Monday, March 6, 1995

Secretaries pleased with voter turnout *****

The overall voter turnout rate of 25.8 per cent at yesterday’s election was the highest record in all Municipal Council Elections, the Secretary for Constitutional Affairs, Mr Nicholas Ng, said in comment on the elections this (Monday) morning during his visit to the Counting Centre at the Henry G Leong Yau Ma Tei Community Centre.

Mr Ng noted that the increase in the actual number of people who had cast their votes this time showed that registered voters had participated more actively in the elections than in 1991.

The fact that the elections were conducted in a peaceful, legal and orderly manner meant that public’s knowledge of elections had increased. There was also keener involvement in public affairs, Mr Ng said.

He wished more people, either as candidates or voters, would take part actively in the Legislative Council Elections in September.

Mr Ng was satisfied with the electoral arrangements. He said that the Boundary' and Election Commission would review the arrangements and make improvements.

15

Meanwhile, the Secretary for Home Affairs, Mr Michael Suen, also found the voter turnout encouraging.

Speaking at his visit to the Counting Centre at Tai Po Community Hall, Mr Suen said that the over 500,000 voters turnout indicated that the public showed a better understanding of and had marked improvements in the participation of election activities.

Mr Suen noted that of the over 400 complaints received, there were only two serious ones and they were only individual incidents.

He added that most people had been carrying out electioneering activities calmly.

End/Sunday, March 5, 1995

BEC Chairman urges physically handicapped electors to vote *****

The Chairman of the Boundary and Election Commission, Mr Justice Woo Kwok-hing, this (Sunday) morning urges physically handicapped electors to come out in force to the polls.

This, he believes, would arouse more candidates to concern about the welfare and interest of these electors.

“This would be mutually beneficial to both parties,” the Chairman said.

Mr Justice Woo was speaking to the press after visiting a Sha Tin polling station where a number of physically handicapped electors cast their votes.

He said the Commission was in close contact with groups representing the interest of the physically handicapped for advice to improve polling arrangements and design of the polling station.

Of the 377 polling stations opened today for Municipal Council elections, 144 are accessible to physically handicapped electors.

A number of templates are also made available in each polling station for blind electors to mark their vote on the ballot paper.

16

The Chairman said the Commission would review the polling arrangements after the elections to see what further improvement could be made.

End/Sunday, March 5, 1995

Record number of candidates contest Municipal Council elections

*****

The Attorney General, Mr Jeremy Mathews, said today's Municipal Council elections were important as there was a record number of candidates contesting 59 seats. A total of 135 nominations were received for the elections.

He was speaking to the media after casting his vote at the German Swiss International School this morning.

"So it's very important that everybody who is a registered elector gets out to vote."

Mr Mathews said it was a good day for the elections as the weather was good.

"So I hope that as many who can get out will get out and vote, for this is very important elections," he said.

In the first four hours of polling which started at 7.30 am, 114,459 registered electors have cast their votes. In the previous elections in 1991, 78,801 people voted in the corresponding period.

A total of 377 polling stations across the territory are open until 10.30 pm tonight.

Of the stations, 163 are accessible to physically handicapped electors.

End/Sunday. March 5, 1995

17

Constitutional Affairs Secretary calls on residents to vote ♦ ♦ ♦ ♦ ♦

The Secretary for Constitutional Affairs, Mr Nicholas Ng, urged the people of Hong Kong to actively take part in the Municipal Councils elections today (Sunday).

Speaking to media members after casting his vote at Kung Lee College this morning, he said it was a civic responsibility to participate in elections.

The two councils provide important recreational and cultural facilities as well as environmental hygiene services to more than six million people of Hong Kong, he said.

The elections today will select 59 councillors to serve on the councils.

A total of 377 polling stations throughout the territory are open from 7.30 am to 10.30 pm.

When asked to forecast the turn-out rate, Mr Ng said: "I think it’s rather speculative to say what is the turn-out rate, but we certainly look forward to high turnout for today’s voting.

"The weather is fine. People are used to the elections, and people're realising the importance of the Urban Council’s and the Regional Council’s activities, so we look forward to active participation by the people of Hong Kong," he said.

In the first hour of polling which began at 7.30 am, 9,344 registered electors have gone to the polls, as compared with 7,304 in the 1991 elections.

End/Sunday, March 5. 1995

18

Voter turnout exceeds last MC Elections * * * * ♦

The Secretary for Home Affairs, Mr Michael Suen, this (Sunday) evening called on those who had not voted in the municipal council elections to do so in the remaining hours.

Commenting on the voter turnout during his visit to the press centre, Mr Suen said there had been an improvement as so far (7.30 pm) the number of people who had come out to vote had exceeded that of the last time.

"More than 410,000 people had cast their vote by now and I hope more will do so in the few hours to come," he said.

"Of course this time we have got more competitions, we have got more campaigning and we have got good weather.

"I would take this opportunity to call on all those voters who have not come out to vote to take this opportunity to elect their own representatives.

"It is important that everyone should come out and exercise their choice to ensure that people who they think can represent them are elected." he added.

End/Sunday. March 5, 1995

Go to the polls: Urban Services Director

* * * * *

The Director of Urban Services, Mr Albert Lam Chi-chiu, called on residents to spare a few minutes today (Sunday) to exercise their civic duty to vote in the Urban and Regional Councils elections.

After casting his vote at the King's College Old Boys' Association Primary School, he told reporters that he was satisfied with the atmosphere at the polling stations.

"Since polling began at 7.30 am, more and more people have been turning up at the polling stations to cast their ballots," he said.

19

In response to a question about the turnout rate this morning, Mr Lam said according to experience in the previous elections, residents usually went to the polls later in the day.

He said residents now had a better understanding of the activities and services of the two Municipal Councils and he urged everyone to support today's elections.

End/Sunday, March 5, 1995

BEC closely monitors election activities

* ♦ ♦ * *

The three-member Boundary and Election Commission (BEC) today (Sunday) toured a number of polling stations throughout the territory to ensure that the Municipal Council elections were conducted openly, fairly and honestly.

On three different routes, the BEC Chairman, Mr Justice Woo Kwok-hing, and members Mr Norman Leung and Mr Chan Wing-tai, saw how different election activities were conducted in various districts.

The Chairman also talked to representatives of the Rehabilitation Alliance Hong Kong at a Sha Tin polling station and listened to their views on how to further improve polling arrangements to facilitate voting for physically handicapped electors.

End/Sunday. March 5, 1995

Schools reminded to return questionnaires on DSS

*****

The Education Department reminds schools to complete and return the questionnaire on the Direct Subsidy Scheme (DSS) on or before Saturday (March 11).

A spokesman for the Education Department said the survey by the Private Schools Review Committee was aimed to find out any problems or worries on the part of prospective schools, and reasons why they are not interested in joining the scheme.

20

The spokesman said the implementation of the DSS was to encourage the growth of a strong private school sector to provide parents with more alternatives. Participating schools would enjoy a high degree of freedom with regard to curricula, fees and entrance requirements for students.

He assured that the DSS would not affect the Government's commitment to the provision of free and compulsory education, and that children would not be compelled to attend a DSS school.

All completed questionnaires should be returned to the Private Schools Review Committee at Room 1153, Wu Chung House, 213 Queen's Road East, Wan Chai on or before Saturday (March 11).

The DSS was recommended by the Education Commission in its report No. 3 published in 1988 and endorsed by the Govemor-in-Council in 1989.

At present, a total of 12 secondary schools, including five international schools and seven other schools, are participating in the scheme which has been implemented since 1991.

End/Sunday. March 5. 1995

Stamps feature international sport events *****

A set of special stamps will be issued on March 22 on the theme of "Hong Kong International Sporting Events", the Postmaster General, Mr Mike Pagliari, announced today (Sunday). There will be four denominations: $1, $1.9, $2.4 and $5. The stamps were designed by Mr Kan Tai-keung and printed by Leigh-Mardon Pty-Ltd of Australia.

This set of stamps features four major international sporting events that have become synonymous with Hong Kong:

* the Hong Kong Rugby Sevens ($1) organised by the Hong Kong Rugby Football Union;

* the China Sea Race ($1.9) organised by the Royal Hong Kong Yacht Club;

21

* the International Dragon Boat Races ($2.4) organised by the Hong Kong Tourist Association, and

* the Hong Kong International Races ($5) organised by the Royal Hong Kong Jockey Club.

The stamps will be displayed for advance information of the public at the General Post Office, Sha Tin Central Post Office, Tsim Sha Tsui Post Office and Tsuen Wan Post Office from March 8. Official first day covers will be placed on sale at all post offices from March 8 at $1 each.

Advance orders for serviced first day covers at $13.8 each will be accepted from March 8 to 15. The minimum number of serviced first day covers per order is five.

Each customer queuing on the first day of issue can buy up to two sheets of stamps of each denomination (viz 100 sets of stamps).

A beautifully designed presentation pack containing the four stamps will also be available for sale at $18 each at all post offices from March 22.

Serviced first day covers affixed with the set of stamps and cancelled with the first day of issue postmark will be placed on sale at $13.8 each on March 22 at the following seven philatelic offices: Beaconsfield House Post Office

General Post Office

Granville Road Post Office

Peak Post Office

Sha Tin Central Post Office

Tsim Sha Tsui Post Office

Tsuen Wan Post Office

On the first day of issue on March 22, hand-back service will be provided at all post offices for official and privately-made covers bearing the first day of issue indication.

End/Sunday, March 5, 1995

22

’’Peace In My World’’ poster contest ♦ ♦ ♦ ♦ ♦

A Hong Kong student winning in the ’’Peace In My World” poster contest may have a chance to win a grand prize to visit the United Nations in New York City in March this year.

The ’’Peace in My World” poster contest — organised by the Education Department's Community Youth Club (CYC) and sponsored by the Lions Club International 303 - attracted 949 entries from 104 primary and secondary students aged between 11 and 13 to take part.

The champion's poster will be forwarded to compete in the 7th Annual International Peace Poster Contest in USA.

The grand prize winner in the International Contest will receive a trip to New York City with two family members for a behind-the-scene visit to the United Nations and a cash price of US$1,500.

The Deputy Director of Education, Miss Elaine Chung, will tomorrow (Monday) present prizes to the winning students at a prize-presentation ceremony.

The first three winners will receive book/stationery tokens of $5,000, $3,000 and $2,000 respective and merit prizes of $500 book/stationery tokens will be awarded to 40 outstanding students.

Attention News Editors:

The Deputy Director of Education, Miss Elaine Chung, will present prizes to the winners of the "Peace In My World” poster contest at a prize- presentation ceremony which will be held at 5.30 pm tomorrow (Monday) at the Landmark Room, The Hong Kong Overseas Bankers Club, 43rd floor, Gloucester Tower, The Landmark, Central.

Your representatives are invited to cover the event.

End/Sunday, March 5, 1995

- 23 -

Leaflets to promote family services

* ♦ ♦ * ♦

The Social Welfare Department has produced a leaflet advising members of the public to make better use of existing services to handle their family problems.

The leaflet, printed in Chinese, is now available for collection at all district offices of the department and the Hong Kong Council of Social Service.

"Members of the public who have any family problem are advised to approach various family services centres throughout the territory as early as possible to avoid their problems from further deteriorating," a spokesman for the department said today (Sunday).

*

"We believe that the earlier a family problem is addressed, the better chance for a solution to be worked out," he said.

At present, there are a total of 62 family services centres throughout the territory. Thirty-nine of them are directly managed by the department while the others are run by subvented non-governmental organisations.

"Family services, through counselling and assistance of professional social workers, are aimed at helping individuals and families cope with family or social adjustment problems, with a view to preserving and strengthening the family as a unit and improving the quality of family life.

"Individuals and families having difficulties in family or interpersonal relationships, behavioural or adjustment problems, hardship arising from financial difficulties or poor health may approach family services centres for assistance," the spokesman said.

"Couples who encounter any marriage crisis or are considering divorce can also seek help.

"If the problems cannot be dealt with within the scope of family services, the department will refer the case to appropriate departments or organisations for assistance in housing, employment, medical care, schooling or vocational training," he added.

The leaflet also contains a comprehensive list showing the addresses and telephone numbers of all 62 family services centres throughout the territory.

End/Sunday, March 5, 1995

DAILY INFORMATION BULLETIN

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

Monday, March 6,1995

Contents Page No,

Governor announces new drive to beat drugs.......................... 1

Transcript of Governor's media session.............................. 3

Governor's opening statement at drugs summit meeting................ 6

Governor's closing statement at drugs summit meeting............... 10

No appeal against court's decision on election petition............ 15

Plans to achieve housing production targets..................... 16

Royal Observatory issues daily radioactivity readings........... 18

Listing of Mai Po as Ramsar Site................................ 19

Government endeavours to minimise ACP's impact on environment 20

Special Topics Report No. 11 on Social Statistics published..... 22

Central allocation of Primary One places........................... 22

New phone number for Wage Security Unit............................ 24

Revised planning.....

Contents

Page No.

Revised planning guidelines on conservation on sale................... 24

Water storage figure.................................................. 25

Hong Kong Monetary Authority money market operations............... 26

March 5 elections

SCA satisfied with Municipal Councils elections....................... 27

BEC: Counting of votes completed smoothly and efficiently.......... 28

1995 Urban/Regional Council elections results......................... 29

1995 District Board by-election results............................... 41

1995 District Board by-election results............................... 41

Governor announces new drive to beat drugs *****

The Governor, the Rt Hon Christopher Patten, has announced a $30 million package of measures to combat the growing problem of drug abuse by young people.

Mr Patten revealed 26 initiatives covering law enforcement, preventive education, treatment and rehabilitation, and research at the end of Hong Kong's first-ever summit on drugs held at the Loke Yew Hall of Hong Kong University.

The summit drew together about 250 representatives of the community, including members of Legco, District Boards, the Action Committee Against Narcotics (ACAN), voluntary agencies, District Fight Crime Committees, teachers, social workers and parents.

The Governor also announced at the summit the latest statistics which showed a continuing rise in the pattern of drug abuse among young people which has alarmed the community.

The statistics for 1994 showed a 22 per cent increase in the number of young drug abusers reported for the first time in 1994 over 1993. Last year's figure was 2,748. The 1993 figure itself was 57 per cent more than in 1992.

"So the growth rate is still distressingly high," Mr Patten warned.

"A complex challenge confronts us. It cannot be tackled by one section of the community along. It has to be tackled together."

Mr Patten also asked the Chairman of ACAN, Professor Chen Char-nie, and the Commissioner for Narcotics, Mr Alasdair Sinclair, to set up a special action group to follow up all new suggestions made at the summit.

"We have heard some very imaginative and positive ideas put forward by members of the community familiar with this problem and we want to look at them closely," Mr Patten said.

The special action group will submit its recommendations to the Governor in three months.

2

Today's summit was divided into four sessions: addressing the areas of law enforcement, preventive education, treatment and rehabilitation, and research.

The Governor said: "When I suggested the idea of a drugs summit a few months ago, I was determined that this should not be a one-off public relations flourish, achieving a bit of publicity for a day or so, then falling off everyone's agenda.

"So in anticipation of our summit meeting today I asked my officials from all parts of the Government machine involved in the fight against drugs to work together to draw up a Forward Action Plan."

The measures included in the Forward Action Plan include:

* Amending the Drug Trafficking (Recovery of Proceeds) Ordinance to make it even more difficult for drug traffickers to launder and retain their illicit profits from drug trafficking;

* Amending the Pharmacy and Poisons Ordinance to increase the maximum penalties for offences of illegal or improper sale of drugs;

* Extending the Superintendent's Discretion Scheme to allow young people arrested for the first time for minor drug offences to be cautioned instead of prosecuted;

* Stepping up inspections of pharmacies by the Department of Health;

* Increasing the Police Narcotics Bureau's surveillance activities with 38 additional police officers;

* Extending controls of chemicals that are used in the illicit manufacture of drugs;

* The Attorney General applying to the Court of Appeal for a review of the sentencing guidelines for possession of cannabis for unlawful trafficking;

* Setting up a Drug Education Resource Centre next year to support the implementation of drug education programmes in schools;

* Developing a new General Studies syllabus for primary schools to enhance students' self-esteem;

3

* Forming a special team of social workers in the Social Welfare Department this October to help about 500 drug abusers a year;

* Setting up two additional residential centres for young opiate abusers and a new counselling centre for young abusers;

* Expanding the Hospital Authority's treatment services for psychotropic substance abusers.

In addition, the Government will allocate an additional $1 million in 1995/96 for drug-related research.

It is estimated that the measures will cost about $30 million over this year.

End/Monday, March 6, 1995

Transcript of Governor's media session * * * * *

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after today's (Monday) Summit Meeting on Drugs:

Governor: Drug abuse is a growing problem world-wide and it's a growing problem here in Hong Kong. Our difficulties aren't yet as bad as they are in some other communities and we certainly don't want them to be. But the figures don't look good and the figures have been getting worse, and if we're to prevent the sort of disaster that has hit so many other communities we've got to take action quickly and we've got to work together as a community, all of us, to beat drugs. That was the purpose of this afternoon's Summit, to get together people from right across the community who have a role in the fight against drugs and to tap their experience and their wisdom and their advice, to see what more we can do as Government.

We're going to consider the ideas put forward this afternoon. I'm setting up a Review Team under AC AN to consider all the ideas that have been put forward and to report to me personally within three months. We've also announced as a sort of payment on account our own Forward Action Plan today containing almost 30 points of action that we are going to take as Government, covering penalties, covering enforcement, covering facilities for education and research, and of course for prevention and rehabilitation.

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We all as a community have to work together to beat this scourge. I think that's the view of this community, I think it's the view of parents in this community. We owe it to our young people and I'm sure that just as we've led, the way and blazed trails in other areas of economic and social life, so we can do so in this one as well.

Question: Governor Patten, do you see this as a long -- I mean don't you feel like you should be extending these remedies for the long term? For example, some people think the problem is not directly that children are out on the streets taking drugs, it's more of a social problem with the homes they live in and they live practically on top of one another, many students only go to school half-day and they have a lot of extra time on their hands. So shouldn't it be attacked more from the angle where, you know, you're going to address these social problems that can lead up to drugs?

Governor: I don't doubt at all that we need long term solutions, and sensible and comprehensive long term solutions require a lot more research. One of the surprising things is how little research has been done on the causes, as well as the cures, here in Hong Kong. Interestingly, if you compare Hong Kong with other communities where drug abuse is on the increase, we don't have a lot of the social problems which they have. For example, in some other communities high levels of youth unemployment are associated with drug abuse and that isn't a problem here in Hong Kong but there may be other social difficulties that we've got which are causing an increase in drug abuse and one of our contributors this afternoon made a very, 1 thought, eloquent plea for more research. But more research can't be a justification for not taking action now, so we have to act in the short term as well as the long term and that's why we're proposing to do more in our schools, that's why we're proposing to give more resources to our Police and that's why we're proposing to give more resources to our Social Welfare Department.

Question: Yes, bearing in mind your decision ... centres being set up, does the Government have any practical solutions for speeding up that process?

Governor: It's a very real process and it's not, as you know, one that just exists in this particular field. But it is a reminder of the importance of working with communities, working through District Boards with communities, to explain to people exactly why the facilities are necessary for Hong Kong and exactly why how things would be worse if we didn't establish these facilities. That point, 1 think, was particularly well pul by I)r Margaret ('han. our I )irector of I leallh. in her answer to questions.

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Question:deadline ... centres as to when they'll be set up? ; ? >•

, . Governor: We vyill set them up as soon as we can but obviously we have to go through the normal planning procedures. Any more on drugs ?

Question: How will you co-ordinate all the plans?

Governor: How will we co-ordinate our plans? Well, first of all ACAN will be undertaking the, review of all the ideas that were put forward this afternoon. They will be reporting to me within three months. The Commissioner of Narcotics will be the main focus in Government for pulling together this programme but obviously I will be taking a particularly close personal interest in it myself.

Question: Governor Patten, some schools have quite severe programmes for students of theirs in testing drugs including ... (inaudible) So how ...do you think it is for schools, independent of Government, to foster programmes ... on their own for their own students?

Governor: Well, a good school, among other things, is a community and as a community it helps prepare children, young people, for the wider community. I think that where good schools are taking initiatives of their own that work, they're to be encouraged and commended. What's more we should try to leam from the example of some schools what works and what may not work. I feel very strongly that not only in this field but in others, it is not sufficient to assume that whatever we have been doing must be the right approach. I think that we need to ensure that we target our efforts and our resources on the things that have the best chance of success and that's true in health education and lifestyle education at schools. It's also true when you come to rehabilitation and treatment of abusers. So I think in a lot of areas we've got to have the humility as Government and as non- governmental organisations and the schools, to look, as somebody said this-afternoon, radically, at what we are doing, try to learn from one another and try to put into place what best works.

Question: Are you saying that you would like to see more of... Hong Kong in some ... (inaudible)

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'Governor: I'd like to see more treatment facilities in Hong Kong and that's one of-the things we've proposed in the Forward Action Plan. But I also want to try to ensure that the sorts of treatment and rehabilitation that we apply are the ones that are mdst likely to work, are the ones that are most likely to be effective. And I think that several of the speakers when they were talking about the importance of looking search'ingly at what we do, were focusing particularly on that issue.

Question: The Democratic Party got riiost of the seats and Elsie Tu an experienced politician lost her seat and Szeto Wah who was named by the Chinese side as counter-revolutionary got the seat. So what's your comment?

Governor: I don't think it's appropriate for me to comment on the outcome of the elections but as for the process of the elections, I think they went extremely successfully. We had a record voter registration, we had a record number of candidates and we had the largest number of people ever voting in the Municipal Council Elections. It was just another example of Hong Kong's maturing as a community and I'm sure that the two Municipal Councils will work very effectively in the interests of the whole community. I'm sure that people will have noticed that those who were going out to vote yesterday were keeping a very close eye on local affairs and I'm sure will keep a very close eye on those that they have elected and that is one of the important reasons for accountability in representative government.

Okay. Thank you very much.

End/Monday, March 6, 1995

Governor's opening statement at drugs summit meeting *****

Following is the opening statement by the Governor, the Rt Hon Christopher Patten, at the Governor's Summit Meeting 6n Drugs today (Monday):

Good Afternoon,

I'd like to welcome all of you very warmly to this Summit Meeting on Drugs this afternoon.

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It is very good to see so many faces. I am grateful to all of you for coming today and for giving your support to this important campaign.

We are here in my judgment on crucial work. We are brought together by a concern, which is shared throughout the community, at the worrying and the persistent increase in drug abuse, particularly amongst the young.

It is perhaps salutary to remind ourselves of the figures. Between 1989 and 1993, the number of reported drug abuses overall rose by 15 per cent. That figure itself is bad enough. But the number under the age of 21 increased by 147 per cent. Over 50 per cent of newly reported cases are now young people. The statistics for 1994 have just become available and I am able to announce them today. The number of young drug abusers reported for the first time in 1994 was 2,748. This is a 22 per cent increase over the number first reported in 1993, which itself was 57 per cent more than in 1992.

So the growth rate is still distressingly high. We have here today at this meeting representatives of many parts of our community: members of the Legislative Council, District Boards, voluntary agencies, District Fight Crime Committees, teachers, social workers, parents, Government officials, people whose work in one way or another brings them into contact with young people and the problem of illicit drugs.

I have invited such a large and diverse group because I wanted to tap the experience and the energies of as wide a cross-section of expertise as possible. A complex challenge confronts us all. It can't be tackled by one section of the community alone. It has to be tackled together. And together I believe that we can beat drugs.

Seated with me at these tables are officials and distinguished members of the community, many pre-eminent in their own field of knowledge or experience on the issue of drug abuse. I will be asking a number of them to make brief statements this afternoon, to share their expertise and their ideas with us.

Our programme will be divided into four separate items: first law enforcement, then preventive education, then treatment and rehabilitation, and finally research.

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For each item, we'll begin with a number of short prepared presentations. Then I throw the topic open to contributions from the floor. I want your ideas and I want your advice, both about what the Government can do, but also about what the community as a whole, or sectors of the community, or groups at the district level, can do to half the growing trend in drug abuse by young people.

When I call for comments from the floor please do feel free to put up your hands. I'll ask you to go to one of the three microphones in the central aisle and speak from there. I hope that when people do speak they will do their best to keep their comments short and to the point, simply so that as many people as possible will have a chance to speak. If we do run out of time and we don't have time to hear everybody, which is I guess inevitable, there are two boxes at the back of the hall into which you can place any written views that you would like taken into account.

Equally of course, if you want to get in touch with me, or ACAN, or the Commissioner for Narcotics after this meeting, with views that you would like to express today but didn't have the time to express, we'll want to hear from you.

At the end of the meeting, I will try to pull the strands together and suggest how we might move forward.

Just let me repeat one thing I have said. This afternoon, we haven't got very long. I know that many of you spend your lives dealing with this issue. So the prospect of getting so much informed experience, so much knowledge expressing itself during a short afternoon, the possibility of that is remote. But first, this is not the one and only time we'll have to discuss this. I shall want to do this again and I shall want between now and our next Summit to see as many of you as possible, those of you who are working with agencies on the ground, I'll hope to be able to see quite a few of you over the next year or so.

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And I say that because when I look at the statistics right across the board, everything in Hong Kong, every sort of social need or social deprivation, the good statistics and the bad statistics, the one thing which stands out like the sorest of thumbs is that things starting to go wrong in this particular area. So I do think we have to spend a lot of time on it. Secondly, I hope that when you set out your ideas about what needs to be done, you'll be as crisp as positive about it as possible. And I am sure while you'll be able to produce an agenda of things for us to spend more money on, and I do want to say that I don't think this is an area which should be too constrained by resources. While I am sure you'll do that, I hope you will also let us know if there are areas where we are at present doing things or spending money where frankly we'll be better off saving our money and putting it elsewhere because there is a tendency in Government to assume that whatever is being done at any given moment is pluperfect and anything additional should be added to it. And I don't think that makes for good government; I don't think it makes for good policy, and I don't think it makes for a very effective use of resources.

I repeat I know that not all of you will be able to get in this afternoon, we'll include as many of you as possible and I hope that those of you who don't manage to speak today will be able to talk to me at some future time or put in your views to us directly or to ACAN over the next few months. But I want to say more about that at the end.

We will now begin with the topic of drugs and law enforcement. And to start us off, and I say this after having being recently to the Narcotics Bureau and been impressed by what I saw there, but to start things off, I'd like to ask the Commissioner, Eddie Hui, to say a few words. Eddie.

End/Monday, March 6, 1995

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Governor's closing statement at drugs summit meeting * * * * *

The following is a transcript of the Governor, the Rt Hon Christopher Patten's closing statement at the Drugs Summit today (Monday):

We've had a long and wide-ranging debate during the last almost three hours and I don't want to keep you any longer. I have found it very useful indeed and I hope others have found it useful as well. I am extremely grateful to all those of you who participated, very grateful to all those of you who shared your knowledge and experiences with us, both from the table of panelists and from the floor as well. You've been extremely patient and very well behaved.

Let me try to sum up and suggest where we might go from here. And I say very deliberately where we might go from here because this is not the end of the road.

When I suggested the idea of a Drugs Summit, a few months ago, I was determined that this shouldn't be a one-off public relations flourish, achieving a bit of publicity for a day or so, and then falling off everyone's agenda. I've been around for long enough to know that success lies not in the main event but in keeping up momentum and in keeping up progress long after it's over.

It will of course be for all parts of the community - for voluntary agencies, for District Boards, for Fight Crime Committees, for schools, for parents and so on - to play their part. We need to mobilise the whole community if we are going to win the war against drugs. But it is right that the Government should lead the way in this and that the Government should set an example. So in anticipation of our Summit Meeting today I asked my officials from all parts of the Government machine involved in the fight against drugs to work together to draw up a Forward Action Plan.

It is not a wishy-wash statement of interest. But it's a detailed list of concrete actions which the Hong Kong Government will be taking and setting out who in Government will be responsible for these actions. So that you can actually pinpoint the responsibility.

Some of these are actions which are in the pipeline; others are completely new initiatives. Together they add up to a total package of measures costing some $30 million in the 1995/96 financial year.

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I just want to make clear that we are not and never should be in a position where it's merely good enough to offer up a good idea in an important course and you can get the financing for it. I don't think that's good government. But I do think we recognise in Government that work in this area has to have priority if we have to stop slithering down the slope which other communities have found themselves descending to their huge damage. So good ideas we will look at positively and we will be as generously as our budget allows.

I just want to go over some of those measures in a moment and we will make available a full list, a full list of our Forward Action Plan to everyone at the end of the meeting.

But this isn't the end of the story. This is the Government's contribution, its payment on account if you like, to kick-start our "Beat Drugs" campaign. Some of these measures in fact address, in full or in part, concerns that we have heard during the discussion here today, many of which the Government shares.

But there have been other concerns, other ideas, other initiatives set out today, which aren't covered in our Forward Action Plan.

A number of their contributions have particularly struck me and it's perhaps invidious to name names. But I've been very struck by what's been said about research, the inadequacy of research, the importance of basing the development of policy on a rational approach. I was struck by one or two contributions which remain saying that there wasn't much point in having this sort of discussion unless we were prepared to have a radical look at what we were doing and what we should do. I was very struck by what was said earlier about the importance of involving the people at whom the publicity is targeted, in drawing up publicity in the first place. And I was struck by what people said about sentencing and about the views of the community on the facilities which are available for drug abusers.

Well, one of the main purposes of this Summit was to share ideas and to seek to build join solutions from them. I am therefore going to ask the Chairman of ACAN and the Commissioner for Narcotics to set up a special action group from within ACAN to review as a matter of urgency all the constructive proposals that have been put forward at this discussion today and to report to me personally within three months, with recommendations as to what future action should be taken.

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We will ensure that participants at this Summit are kept informed of progress, both on the recommendations of this special action group, and on the Government's Forward Action Plan. I propose that we have another Summit in a year's time to report progress and to give further impetus to the campaign.

Let me now turn to the main items of the Government's Forward Action Plan. We have grouped these into the same four categories as the discussion here this afternoon. They are the main points in our Forward Action Plan, not the only points in our Forward Action Plan.

First, Law Enforcement

We will be introducing amendments to the Drug Trafficking (Recovery of Proceeds) Ordinance in this legislative session to make it even more difficult for drug traffickers to launder and retain their illicit profits from drug trafficking.

We will be seeking this legislative session to increase the maximum penalties for the illegal or improper sale of drugs.

We will be adding 38 Police Officers to the Police Narcotics Bureau, a bureau which I have seen for myself does a superb job, to help the bureau to increase its surveillance activities.

We will increase inspections of pharmacies, a point that was made in the outset, from 560 to 700 per month by September this year and set up a special task force to help the prosecution of offending drug retailers.

We will extend statutory licensing controls to 21 precursor chemicals used in the illicit manufacture of drugs.

District Offices throughout the territory will be taking action within the next three months to convene meetings at the district level to co- ordinate local efforts against drugs. We hope to get District Boards, District Fight Crime Committees, education authorities, law enforcement agencies, social work teams, housing authorities and all other agencies involved together in this process.

The Attorney-General will make a case to the courts for a review of the sentencing guidelines for possession of cannabis for unlawful trafficking.

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On Preventive Education

We will be setting up a new Drug Education Resource Centre in 1996 to support the implementation of drug education programmes in schools.

We will hold two drug education courses this year to train 120 secondary school teachers; and similar courses for 120 primary teachers.

We will be producing a special video targeted at parents, on the handling of drug problems among their children. This will be distributed to schools and youth organisations and PTA and so on.

We will be developing a new General Studies Syllabus for primary schools to enhance pupils' self-esteem and to help them decide to lead a drug-free life.

We will be carrying out a major anti-drug publicity campaign throughout the year, including an anti-drug event in every district, a special TV programme, radio shows in public housing estates, and an International AntiDrug Day exhibition in June.

On Treatment and Rehabilitation

But in announcing this I do want to make clear that we do understand a need to tackle the problem in getting some of these facilities going because of community concerns. We will be aiming to set up two additional residential treatment centres for young opiate abusers and a new counselling centre for young abusers.

The Hospital Authority will establish six drug abuse clinics which will treat about 300 patients a year.

Social Welfare Department will set up in October 1995 a team of specially trained social workers to help about 500 drug abusers a year.

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Finally on Research

The Government, and this is initial, I don't doubt that we will need to do more, the Government will make available an additional $1 million for drug-related research to help us gain a better understanding of the drug situation. But we'll need to look sympathetically at further sensible proposals for more research because I was very very struck by what Professor Hedley said in his comments.

A lot of points this afternoon, good points, sensible points, points on which we will have to respond and points which will be considered by the review team that I have mentioned earlier. So I hope that we'll be able to convince all of you, even if we don't do everything you want that we have looked at it seriously and sensibly in a rational way and try to use your experience, you expertise, you ideas to put together a coherent strategy.

We've obviously got a busy year ahead. One reason for having another Summit this time next year is to make sure that you know that we haven't just sat back after this meeting and thought that we've done everything that was required.

We hope that these actions and measures, coupled with follow-up on a number of the other proposals coming from you during the last three hours, will give a really big boost to our campaign because this really is one battle which the whole community wants to win. I don't think that we should let people down. We mustn't let our young people down. As our slogan says: "Together, we can beat drugs". Together, I really believe that we can do it.

Hong Kong has pointed the way in very many areas of economic and social life in the last 40, 45 years. Hong Kong has done some things which the rest of the world might have thought impossible. I think it would be nice if in five or ten years' time we could add our ability to deal with, cope with, constrain drug abuse. I think it would be nice if we can add that to our list of achievements. I think we owe it to our young people at least to have a go and I am grateful to all of you for being part of that campaign. Thank you very much.

End/Monday, March 6, 1995

15

No appeal against court's decision on election petition *****

In response to media enquiries, a Government spokesman said today (Monday) that the Administration would not appeal against the court's decision regarding the eligibility of Mr Lau San- ching to stand for the September 1994 District Board election.

The spokesman explained that the court, as it emphasised, was only applying the established legal principle on the concept of "ordinary residence" to the particular facts and circumstances of Mr Lau's case. No new legal principle was involved.

"The ruling should not therefore have any significant impact for legislation, including electoral legislation, which employ the 'ordinary residence' concept," he said.

In future, each nomination for candidature will, as now, be considered on its own merits, having regard to the relevant facts and circumstances, including the reasons for any prolonged absence during the 10-year qualifying period, and the individual's mode of life before the qualifying period, the spokesman said.

On the length of the qualifying period, the spokesman said the Administration was actively reviewing the requirement in the light of the court's comments.

It hopes to be able to come to a view quickly for consultation with the Legislative Council and the community.

End/Monday, March 6, 1995

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Plans to achieve housing production targets *****

The Secretary for Housing, Mr Dominic Wong, today (Monday) outlined plans to achieve the housing production targets of 504,000 flats at affordable prices or rents in the next six years, or an average of 84,000 flats a year.

Mr Wong said: "Our targets are to ensure that there will be 141,000 public rental units, 148,000 subsidised home ownership scheme flats and 20,000 Sandwich Class sale flats provided by the Housing Authority and the Housing Society, and 195,000 private sector flats coming on stream between 1995- 96 and 2000-2001 to meet housing demand in the public and private sectors.

"As one of the first steps to accomplish these goals, public expenditure on housing, including that for the Housing Authority, will increase by 10.7 per cent to $24.99 billion in 1995-96. This accounts for 12.25 per cent of the total public expenditure.

"We have also set up the Housing Project Action Team under my chairmanship to monitor, facilitate and expedite housing development in both the public and private sectors.

"We are now fast-tracking 19 projects which will eventually produce 32,300 flats. We are also monitoring closely another 19 sites for the production of another 61,300 units in both the public and private sectors," Mr Wong said.

The Secretary for Housing also revealed that the Government had set aside $8 billion at the disposal of his branch in the next few years to speed up infrastructure projects essential to housing development. The sum will be used mainly to fast-track land formation, water supply, road improvement and building projects.

"We have just commissioned a consultancy study on the redevelopment potential of the entire territory. Five other studies will also be undertaken to assess the housing development potential of about 170 hectares of land.

"The latter will include, for example, several sites in the urban area, Sham Tseng Reclamation, Tin Shui Wai Reserve Zone, former military sites and the land reserve at Ma On Shan.

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"To assist us in evaluating housing needs in Hong Kong, an interdepartmental working group is conducting a systematic and comprehensive assessment of the scale and composition of housing demand.

"The results, to be ready by mid-1995, will provide the basis for a review of our Long Term Housing Strategy for the period after 2001. The review will commence at the end of this year."

In order to strengthen monitoring of housing supply, "we are in the process of establishing an interdepartmental information system, based in the Rating and Valuation Department, which can give early warning of any slippage or change in housing development plans and better monitoring of the activities and movements in the local property market.

"We are also examining ways to computerise the Land Disposal Inventory System which will facilitate the preparation of the five-year land sale programme," Mr Wong said.

"To cope with the additional work, we hope to create 98 posts in the relevant departments in 1995-96.

"We have also set up a Flat Supply Sub-committee to monitor and advise on matters concerning the housing supply and demand, and the residential property market in general.

"The sub-committee, under my chairmanship, provides a useful forum for exchange of views with non-govemment members from housing-related organisations."

The Secretary for Housing confirmed that "the anti-speculation measures introduced in June last year are achieving the desired result and should continue to remain in force.

"Any relaxation will likely encourage speculative activities again and push up property prices.

"We will continue to provide more land for housing and increase the supply of flats. We have no intention of introducing further intervention measures, and will let the market adjust itself. We will monitor developments in the property market closely.

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"On the clearance of urban squatters and old Temporary Housing Areas (THA)," Mr Wong said, "our target is to rehouse all urban squatters on Government land by March 1996 and to clear by the end of 1996 all THAs built before 1984."

Mr Wong also repeated his public appeal to all occupants of illegal rooftop structures, who are eligible for public housing, to come forward to register with the Housing Authority and place themselves on the general waiting list first.

"This is the proper way to ensure that they will obtain public housing," the Secretary for Housing said.

End/Monday, March 6, 1995

Royal Observatory issues daily radioactivity readings

*****

With effect from tomorrow (Tuesday), the Royal Observatory will issue once a day information about the ambient gamma radiation dose rates recorded by its radiation monitoring network in the territory.

The radioactivity readings will be included in its weather bulletin issued shortly after midnight to meet the printing deadlines for morning newspapers.

Every month, the Royal Observatory publishes in a bulletin daily readings of the ambient gamma radiation levels recorded by its radiation monitoring network. These monthly bulletins are available to interested members of the public free of charge.

From readings taken during the period 1987 - 1993, the background ambient gamma radiation dose rates in Hong Kong may vary between 0.06 and 0.3 microsievert per hour.

Since the Guangdong Nuclear Power Station at Daya Bay began operation in early 1994, the ambient gamma radiation dose rate in Hong Kong has shown no noticeable increase above these values.

End/Monday, March 6, 1995

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Listing of Mai Po as Ramsar Site * * * * He

Approval has been given by the Govemor-in-Council to list Mai Po and Inner Deep Bay as a Wetland of International Importance under the Ramsar Convention as Hong Kong's contribution to a worldwide effort to conserve wetlands of significant ecological, scientific and recreational value.

The decision to list the 1,500-hectare wetland as a Ramsar site is another major step forward in conserving the Mai Po Marshes as a nature reserve for public enjoyment and in protecting it against development incompatible with the environment.

The Mai Po Marshes is the last of remaining wetland of its size in Hong Kong. It is a "refuelling station" for migratory birds including many rare and endangered species which rely on it for feeding and resting in their long flight.

The area is also significant for its conservation value for the number of local animal species it supports. Also, over a dozen invertebrate species new to science have been discovered in the area.

Its significance is also borne out by the fact that alternative sites with large mangrove stands in the region are fast diminishing in number and extent due to development.

The intention to list Mai Po as a Ramsar site was announced in June 1993 and was reaffirmed by the Governor in his Policy Address last year.

The listing will entail active conservation management which may include creation and restoration of habitats for the waterfowl. ’ogical survey and monitoring, vegetation and wildlife management and estaolishment and maintenance of visitor centres and education facilities.

A comprehensive management plan for the area will be developed upon the completion of a consultancy study by wetland ecologists.

A publicity programme will be carried out to explain the listing. Relevant bodies will be consulted on the conservation measures.

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After that, the Government will notify the Ramsar Bureau to put Mai Po and Inner Deep Bay onto the List of Wetland of International Importance under the Ramsar Convention.

The Director of Agriculture and Fisheries will be the co-ordinator and future management authority of the Mai Po Ramsar Site.

Members of the public who wish to obtain more details of the proposed listing or express their views on the matter are welcome to write to the Agriculture and Fisheries Department, 12th Floor, Canton Road Government Offices, 393 Canton Road or call 2733 2356 on or before April 3, 1995.

End/Monday, March 6, 1995

Government endeavours to minimise ACP's impact on environment *****

The Government is committed to making the Airport Core Programme (ACP) projects as environmental friendly as possible, the Director of Environmental Protection, Dr Stuart Reed, said today (Monday).

Officiating at the opening ceremony of a five-day exhibition on the ACP organised by the New Airport Projects Co-ordination Office (NAPCO), Dr Reed said in the course of implementing the ACP projects, NAPCO and the various ACP project managers had to closely monitor the costs and progress of these mega projects, as well as shouldering the responsibility for ensuring that any adverse effects on local residents from pollution caused by the ACP construction activities were kept to a practicable minimum.

"The role of my department in all this has been to set the ground rules for minimising the pollution from construction activities and to ensure that the right measures are incorporated at the planning and design stage to make the airport and supporting infrastructure as environmentally friendly as possible, when it becomes operational.

"To help us to do this, we have required an Environmental Impact Assessment for each of the ACP projects, and special arrangements have been introduced to ensure that agreed anti-pollution measures are implemented," he said.

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Dr Reed said an Environmental Project Office (ENPO) was set up in West Kowloon as a means of bringing an extra focus on compliance with agreed limits on air and water pollution and noise.

"Staff from the ENPO visit the construction sites in the West Kowloon Project Area very frequently with a view to identifying problems and taking action as early as possible.

"They also liaise with the local community and discuss their concerns about environmental problems associated with the construction works and present regular progress reports to the relevant district boards.

"This all helps us to keep a good grip on the situation and to avoid there being a gap between the promises and commitments made at the planning and design stage and the actual performance in practice," Dr Reed said.

The ACP exhibition is being held at the Ocean Terminal in Tsim Sha Tsui and is opened daily from 10 am to 8 pm until Friday (March 10).

It is the 1 Oth exhibition organised by NAPCO since August last year to keep members of the public abreast of work progress of the 10 ACP projects.

More than 150,000 people have attended the previous nine exhibitions which were held throughout the territory.

Also officiating at today's opening ceremony were the Chairman of Yau Tsim Mong District Board, Mr Chow Chun-fai; the Chairman of Sham Shui Po District Board, Mr Wong Chung-ki; and the Director of NAPCO, Mr Billy Lam.

End/Monday, March 6, 1995

22

Special Topics Report No. 11 on Social Statistics published

* * * * *

Special Topics Report No. 11 on social statistics is published today (Monday).

It contains the findings of six special enquiries conducted by the Census and Statistics Department via the General Household Survey during October 1992 to December 1993.

The six topics covered in the report are labour mobility; domestic helpers; sick leave and maternity leave patterns of employees; cigarette smoking pattern; public awareness of the concept of energy efficiency; and taxi waiting time.

The report is now on sale at $81 a copy 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, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

End/Monday, March 6, 1995

Central allocation of Primary One places

* * * * *

The Education Department announced today (Monday) that all children who had applied for a public-sector Primary One place but had not secured a discretionary place would be centrally allocated to a Government or aided primary school for the 1995 school year.

They will receive a letter in the next few days from the Primary One Admission Unit of the Education Department requesting them to go to a specified distribution/collection centre to collect a "Choice of Schools" Form and a list of all Government and aided primary schools in their home district from March 11 (Saturday) to March 13 (Monday) from 9.30 am to 12.30 pm and from 1.30 pm to 4.30 pm.

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Completed forms should be returned to the same centre within the same period.

All distribution/collection centres will remain open during the specified time on Sunday (March 12).

Parents are reminded that if they have not received the letter from the department by March 10, they should contact the Primary One Admission Unit on 2572 4383 immediately.

Parents who have moved house recently or are planning to move house in the near future must inform the Primary One Admission Unit so that arrangements can be made to allocate a place to their children in their new home district.

The central allocation of Primary One places is solely based on parents' choices with no reference to the "Points System". However, when a school is oversubscribed, a randomisation method will be used to ensure fairness to all.

Results of the central allocation will be released in early June this year.

Meanwhile, parents are welcome to make use of the Education Department's Automatic Telephone Enquiry Service (telephone 2891 0088) for information on the Primary One Central Allocation System.

A department spokesman added that the school list to be distributed to parents at the respective centres between March 11 and 13 will show which of the schools adopt the Target Oriented Curriculum (TOC) in Primary 1. Parents who are not familiar with TOC are advised to visit a roving exhibition which is now being staged throughout the territory.

Visitors to the exhibition will be able to get a more comprehensive picture of exactly how TOC will be taught and students assessed.

Sample pages of TOC learning packages, assessment forms and report forms will be displayed and a video will explain the concept and benefits of the curriculum. A full list of the 76 schools that will adopt TOC in Primary 1 in Phase I of the scheme in September this year will be displayed at the exhibition.

24

Parents may visit the roving exhibition at the pedestrian deck outside a cinema at Lok Fu Shopping Centre Phase II on March 7; entrance arena at Sha Tin New Town Plaza I on March 8 and 9; Level 2 shopping arcade at Metroplaza in Kwai Fong on March 10 and 11; and entrance exhibition hall at Yuen Long Plaza on March 12 and 13.

Education Department officers will be available to answer questions on TOC from visitors daily between noon and 7 pm.

End/Monday, March 6, 1995

New phone number for Wage Security Unit *****

The telephone number for enquiries of the Labour Department's Wage Security Unit (WSU) will be changed to 2923 5299 tomorrow (Tuesday).

The Unit verifies applications to the Protection of Wages on Insolvency Fund which provides ex gratia payments to employees who are owed wages and other employment termination benefits by their insolvent employers.

Since there is a four-month time limit for applications to be made to the Fund, employees who fall into the above category are urged to approach the Labour Relations Service (LRS) of the Department for assistance as soon as possible. Applications for ex gratia payments will be referred by the LRS to the WSU for processing.

End/Monday, March 6, 1995

Revised planning guidelines on conservation on sale

*****

Chapter 10 of the Hong Kong Planning Standards and Guidelines on Conservation has recently been revised by the Government and is now available for sale.

A spokesman for the Planning Department said the revised chapter provided planning guidelines to achieve effective conservation of important natural and man-made features.

25

Hong Kong has extensive undeveloped tracts of natural landscape which contain a diverse habitat supporting numerous native plant species and wildlife and has a long history of human settlement from which a variety of cultural relics remain.

"The revised chapter gives a detailed account of current practices of conservation in the existing land use planning framework in Hong Kong.

"It provides guidelines for conserving and enhancing the environment by protecting the existing conservation areas and heritage features, by identifying new areas for conservation and by compensating for areas of conservation value which are lost to essential development projects.

Topics covered in the revised chapter include the general principles of conservation, measures to protect natural landscapes and habitats, historic buildings, archaeological sites and other antiquities.

The existing legislative provisions and administrative means for conservation, the enforcement mechanism, and the roles of government departments and decision-making bodies related to conservation are also covered in the chapter.

The revised chapter is now available for sale at the Government Publications Centre, ground floor, Low Block, Queensway Government Offices, 66 Queensway. Hong Kong at $22 a copy.

Published in a series of 11 chapters each devoted to a particular aspect of land uses or facilities, the Hong Kong Planning Standards and Guidelines are being sold on an individual chapter basis.

End/Monday, March 6. 1995

Water storage figure *****

Storage in Hong Kong’s reservoirs at 9 am today (Monday) stood at 68.5 per cent of capacity or 401.698 million cubic metres.

This time last year the reservoirs contained 399.761 million cubic metres of water, representing 68.2 per cent of capacity.

End/Monday. March 6. 1995

26

Hong Kong Monetary Authority money market operations *****

Cumulative Time change $ million (hours) (Smillion)

Opening balance in the account 1,235 0930 + 1,477

Closing balance in the account 2,498 1000 + 1,477

Change attributable to : 1100 + 1,497

Money market activity + 1,497 1200 + 1,497

LAF today -234 1500 + 1,497

1600 + 1,497

LAF rate 4.25% bid/6.25% offer TWI 119.0 *-0.4* 6.3.95

Hong Kong Monetary Authority

gp bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.20 15 months 2605 6.35 99.56 6.84

1 month 5.39 24 months 2702 7.50 100.67 7.25

3 months 5.98 29 months 3707 6.95 99.26 7.42

6 months 6.31 35 months 3801 8.00 101.27 7.64

12 months 6.67 58 months 5912 8.15 100.62 8.15

Total turnover of bills and bonds - $10,895 million

Closed March 6, 1995

End/Monday, March 6, 1995

27

SCA satisfied with Municipal Councils elections *****

The Secretary for Constitutional Affairs, Mr Nicholas Ng, said today (Monday) that yesterday's Municipal Councils (MC) elections had been satisfactory both in terms of voters' participation and electoral arrangements.

He told a media session this morning that there was clear evidence that the people of Hong Kong were civic-minded and were mature enough to choose their representatives in an orderly manner.

On voter turnout, Mr Ng said over 560,000 people came out to vote yesterday, which was 168,000 (43 per cent) more people as compared with the 1991 MC elections. The number also surpassed the voter turnout in all previous rounds of MC elections.

"The overall turnout rate of 25.8 per cent is also higher than the rate in 1991 (23.2 per cent), although we now have a much greater number of registered electors," he said.

As for electoral arrangements, Mr Ng said the elections were generally very smooth except for a few isolated incidents. He noted that there were fewer complaints this time than in last year's District Boards elections and that most of these were minor ones concerning publicity or electioneering activities.

On whether there should be a cooling-off period on polling day for the coming Legislative Council elections in view of the few isolated scuffles, he said no doubt the Boundary and Election Commission would take into account the experience gained in this election as well as public opinions before firming up the electoral procedures for the September elections.

Mr Ng added that the Commission would now concentrate its work on voter registration and on planning the electoral arrangements for the Legislative Council elections.

End/Monday, March 6, 1995

28

BEC: Counting of votes completed smoothly and efficiently *****

The following is issued on behalf of the Boundary and Election Commission:

The Chairman of the Boundary and Election Commission, Mr Justice Woo Kwok-hing, said the counting of votes for the Municipal Council (MC) elections was completed in a smooth and efficient manner.

He was briefing reporters this (Monday) morning at the press centre after all the results of the MC elections and the two District Board by- elections were known.

"Starting at about 1 I pm last night, it takes about nine hours to finish the process of vote counting," Mr Justice Woo said.

"I am pleased to see that the counting process was conducted orderly and efficiently.

Among all the constituencies, the Chai Wan East constituency is the last to finish its counting process, with the results being announced at about 8.15 am.

Yuen Long Town Centre is the first constituency to finish its counting at about 1.30 am while Sai Kung, the district with only one constituency, completed the counting at 2.15 am.

End/Monday, March 6. 1995

29

1995 Urban/Regional Council elections results *****

CENTRAL AND WESTERN DISTRICT

Constituency Name of Candidate No. of Votes

Western IP Kwok-him 7,371

CHAN Kwok-leung 8,084 (elected)

Central CHAN Yuk-cheung 4,186

KAM Nai-wai 6,164 (elected)

WAN CHAI DISTRICT

Constituency Name of Candidate No. of Votes

Wan Chai West WONG Hon-ching, San Stephen 3,953 (elected)

LI Kin-yin 2,406

Wan Chai East WONG Ying-kay, Ada 3,182 (elected)

WONG Cheung-chi, Thomas 143

YEUNG Wan-king, Susanna 1,009

TSE Wing-ling, John 2,934

30

EASTERN DISTRICT

Constituency Name of Candidate No. of Votes

North Point West WOO Yan-wai, Mathias 2,719

CHAN Tak-wai 1,163

CHOW Kit-bing, Jennifer 3,370 (elected)

YUEN King-yuk 749

North Point East WONG Kwok-hing 6,718 (elected)

SHING Wai-pong 1,453

Quarry Bay LAI Chi-keong, Joseph 5,937 (elected)

KONG Tze-wing 3,125

YUEN Ki-kong 1,861

Shau Kei Wan FU Yuen-cheung, Alexander 1,716

HUI Ka-hoo 1,352

TO Boon-man, Daniel 2,860 (elected)

CHUM Ting-pong 367

31

Chai Wan West CHAO Shing-kie 4,417

CHAN Tim-shing, Manuel 5,047 (elected)

Chai Wan East CHUNG Shu-kun, Christopher 7,477 (elected)

TSANG Kin-shing 4,994

SOUTHERN DISTRICT

Constituency Name of Candidate No. of Votes

Aberdeen and Bays Area CHAN Yuek-sut, Joseph Uncontested

Ap Lei Chau WONG Man-chiu, Ronnie 4,901 (elected)

CHENG Kar-foo, Andrew 4,520

Pokfulam and Wah Fu TSE Wong Siu-yin, Elizabeth 2,229

LAI Hok-lim 5,696 (elected)

YAU TSIM MONG DISTRICT

Constituency Name of Candidate No. of Votes

Yau Tsim WONG Kwok-tung 5,775

(elected)

32

AHUJA, Gopaldas Holaram 1,721

LI King-wah 1,140

CHUNG Yee-fong, Helen 785

FOO Pui-man 189

Mong Kok LAW Wing-cheung 3,536

CHAN Kwok-ming 2,399

CHAN Man-yu, Henry 530

NG Wing-fai, 4,656

Stanley (elected)

SHAM SHUI PO DISTRICT

Constituency Name of Candidate No. of Votes

Sham Shui Po HA Ving-vung 6,734

West CHEUNG Wing-sum, 6,791

Ambrose (elected)

Sham Shui Po WONG Chung-ki, Uncontested

Central Eric

Sham Shui Po East

TAM Kwok-kiu

Uncontested

33

KOWLOON CITY DISTRICT

Constituency

Name of Candidate

No. of Votes

Kowloon City LEE Cheuk-fan 1,863

North LEUNG Ding-bong, 4,815

Ronald (elected)

Kowloon City East WEN Choy-bon LAM Ming 3,607 (elected) 3,114

Kowloon City PAO Ping-wing 4,224

South (elected)

FUNG King-man, Virginia 3,447

Kowloon City WONG Siu-yee 5,533

West CHIANG Sai-cheong 6,275 (elected)

WONG TAI SIN DISTRICT

Constituency

Wang Tung and

Lok Tin

Wong Tai Sin and Chuk Yuen

Name of Candidate

MOK Ying-fan

LAM Man-fai

No. of Votes

Uncontested

9,088 (elected)

34

TO Kwan-hang, Andrew 7,120

Tsz Wan Shan and KAN Chi-ho 4,402

San Po Kong CHOI Luk-sing 3,332

LEE Kwok-keung 5,171 (elected)

Choi Hung Wan and Ngau Chi Wan CHAN Chun-fat 1,770

YEUNG Lai-yin, Cecilia 2,671

WU Chi-wai 6,595 (elected)

KWUN TONG DISTRICT

Constituency Name of Candidate No. of Votes

Kwun Tong West AU Yuk-har, 8,047

Grace (elected)

CHAN Kam-lam 7,204

Kwun Tong North TU Elsie 6,778

SZETO Wah 9,175 (elected)

Shun Sau KWOK Bit-chun 8,725 (elected)

LAW Chun-ngai 6,030

35

Kwun Tong Central KAN Wing-kay 3,462

r* • • - z . • HUNG Chung-fun, Steven 5,884 (elected)

Kwun Tong South NG Siu-wah 4,161

LI Wah-ming 6,798 (elected)

Lam Tin YIU Cheuk-hung 4,058

LI Ting-kit 1,556

* I. '.J-1- .. TANG Chi-ho, Francis 4,237 (elected)

TSUEN WAN DISTRICT * 1 i >' J

Constituency Name of Candidate No. of Votes

Tsuen Wan West LIU Cheung-hin 1,496

CHENG Wing-kee, Wellington 5,183 (elected)

IP YEUNG Fuk-lan ' • 1 3,270

Tsuen Wan Central WONG Yin-ping 192

AU-YEUNG Po-chun 3,031

KWONG Kwok-chuen, Cosmas 4,811 (elected)

YOUNG Fuk-ki, Sarena 1,012

36

Tsuen Wan East CHAN Yuen-sum, Sumly 5,772 (elected) )

YEUNG Fuk-kwong 4,095

TUEN MUN DISTRICT

Constituency Name of Candidate No. of Votes

Tuen Mun East CHAN Wan-sang 5,063

CHEUNG Yuet-lan 5,475 (elected) ’ ■ I

Tuen Mun West SHUNG King-fai 1,481

YIM Tin-sang 8,278 (elected)

Tuen Mun Central CHAN Yau-hoi 5,062

HO Chun-yan 9,599 (elected)

Tuen Mun North FUNG Yau-wai 4,431

CHAN Shu-ying, Josephine 5,877 (elected)

37

YUEN LONG DISTRICT

Constituency Name of Candidate No. of Votes

Tin Shui Wai LEUNG Che-cheung 4,256 (elected)

CHEUNG Yin-tung 4,186

Yuen Long Town NGAN Kam-chuen 6,345

Centre (elected)

MAK Ip-sing 4,879

Yuen Long Town CHING Chan-ming 3,868

Rural

TANG Wai-ming 4,831

LEE Keng-yip 5,378

NORTH DISTRICT (elected)

Constituency Name of Candidate No. of Votes

Sheung Shui WONG Sing-chi 4,940

(elected)

AU Wai-kwan 3,471

CHEUNG Kan-kwai 2,931

38

Fanling and TIK Chi-yuen 5,980

Sha Ta CHEUNG Hon-chung 7,217 (elected)

TAI PO DISTRICT

Constituency Name of Candidate No. of Votes

Tai Po West WONG Chi-keung, 6,096

Johnny (elected)

FUNG Chi-wood 4,527

Tai Po Central CHENG Chun-ping , .7. uncontested

Tai Po East CHAN Ping 5,114 (elected)

CHEUNG Wing-fai 3,994

SAI KUNG DISTRICT

Constituency

Sai Kung Rural and Tak Fu

Tseung Kwan O

Name of Candidate

WAN Yuet-cheung

LAM Wing-yin

LING Man-hoi

No. of Votes

Uncontested

7,165 (elected)

3,508

39

SHA TIN DISTRICT

Constituency Name of Candidate No. of Votes

Ma On Shan Chan To-yeung 3,965 (elected)

Wong Mo-tai 3,722

Li Po-ming 1,826

Sha Tin East CHOW Wai-tung 6,862 (elected)

HO Sau-mo 2,813

FU Sze-wai, Raymond 1,604

Sha Tin North PANG Cheung-wai, Thomas 5,420 (elected)

KONG Wood-chiu 2,214

LEE York-fai 3,774

Sha Tin South CHAN Yuet-hung, Monnie 4,501

LAM Hong-wah 6,016 (elected)

Sha Tin West TONG Po-chun 2,791

HO Hau-cheung 4,530

CHING Cheung-ying 5,381 (elected)

- 40 -

KWAI TSING DISTRICT

Constituertcy Name of Candidate No. of Votes

Upper Kwai Chung TAM King-wah, Alan 5,365 (elected)

TSUI Wing-cheung 2,168

Kwai Chung Central LEUNG Kwong-cheong 7,202 (elected)

CHUNG Man-fai 6,362

Tsing Yi South & Lower Kwai Chung WONG Yiu-chung 6,342

TING Yin-wah 7,058 (elected)

Tsing Yi North LEE Wing-tat 6,810 (elected)

ISLANDS DISTRICT KWOK Wai-ling 2,558

Constituency Name of Candidate No. of Votes

Islands LEE Kwai-chun Uncontested

End/ Monday,March 6, 1995

41

1995 District Board by-election results *****

Lower Ngau Tau Kok constituency of Kwun Tong district

Name of candidate No. of votes

Mr Wong Kin-man 1,576 (elected)

Mr Chan Kok-wah, Ben 1,481

End/Monday, March 6, 1995

1995 District Board by-election results

*****

Yau Ma Tei constituency of Yau Tsim Mong district

Name of candidate No. of votes

Ms Ng Po-shan, Austen 887 (elected)

Mr Wong Sui-man 484

Ms Lai Yuen-ching 454

Mr Liu Kwong-sang 182

End/Monday, March 6, 1995

DAILY INFORMATION BULLETIN

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

Tuesday, March 7,1995

Contents Page No,

Donald Tsang appointed Financial Secretary................................ 1

Appointments of senior Government officials............................... 3

Transcript of Governor’s media session.................................... 7

Postage rates, fees and charges to rise in June........................... 9

Governor to attend Fortune Global Forum.................................. 11

LegCo panels briefed on community response to airport consultation... 12

Views on the implementation of Covenant invited.......................... 14

ICC visits in Hong Kong.............................................. 15

Secretary for Security to visit Vietnam.................................. 16

Cheung Ching Tunnel excavation completed................................. 16

Delinking of Infoline from IDD service............................... 18

Pharmacy registration examination results announced...................... 19

Immigration officers on attachment to UK Immigration Service............. 20

Views on compulsory education sought..................................... 21

Hong Kong Monetary Authority tender results.............................. 22

Hong Kong Monetary Authority money market operations..................... 23

1

Donald Tsang appointed Financial Secretary ♦ * * * *

The Government announced today (Tuesday) that Mr Donald Tsang- will succeed Sir Hamish Macleod as Financial Secretary in September 1995.

Mr Tsang has very wide experience in the Government, having served in a variety of posts in the Civil Service for more than 27 years. He has had a particularly close association with finance and trade related fields in his career.

He was on secondment to the Asian Development Bank from 1977 to 1978. In 1981, he was sent to Harvard University, where he completed a Master in Public Administration specialising in economic affairs.

In recent years he has been Director of Administration, Director-General of Trade and has served as Secretary for the Treasury since May 1993.

Sir Hamish has been directed to retire in the interests of localisation. He was appointed to his present post of Financial Secretary in August 1991.

Commenting on the announcement, the Governor, the Right Honourable Christopher Patten, said: "Hong Kong owes a great debt of gratitude to Sir Hamish for his outstanding success over the past four years as Financial Secretary.

"He has managed the economy in a way which has earned the admiration and respect of both the local community and international investors; cutting taxes three times in a row while increasing investment in our social and physical infrastructure and boosting our reserves to a formidable level.

"Sir Hamish also left a distinctive mark on the two APEC meetings of Economic Leaders at which he represented Hong Kong. His tremendous knowledge of international trade issues helped to shape the historic agenda these meetings set for the economic opening up of our region into the next century.

"These achievements have crowned a brilliant career in the public service spanning almost 30 years and virtually every aspect of life in Hong Kong. He has been a wonderful colleague whose integrity and loyalty to Hong Kong have been an example to us all. I shall greatly miss him and his wise counsel."

Mr Patten said it was a reflection of the depth of talent and diversity in the civil service that the Government was able to find such an extraordinarily able replacement for Sir Hamish.

2

"I am sure Donald Tsang's appointment will be widely welcomed in the Civil Service and the community as a whole," he said. "Donald Tsang has a tremendous record of achievement and commitment to Hong Kong. I have absolutely no doubt that he will build on the strong foundations laid down by Sir Hamish.

"This and other appointments we have announced today mark another major step towards our goal of filling all Policy Secretary posts by suitable local officers by the end of 1995," he added.

Brief biographical notes on Sir Hamish Macleod and Mr Donald Tsang are:

The Honourable Sir Hamish Macleod. KBE. JP

Aged 55. Sir Hamish joined the Administrative Service in 1966. During the early part of his career, he held a variety of posts in branches and departments including the former Resettlement Department, Finance Branch, Civil Service Branch, the former Social Services Branch and the former New Territories Administration. He was Director of Trade from 1983 to 1987, Secretary for Trade and Industry from 1987 to 1989 and Secretary for the Treasury from 1989 to 1991. He was appointed Financial Secretary in August 1991.

Mr Donald Tsang Yam-kuen. OBE. JP

Aged 50. Mr Tsang first joined the Civil Service in 1967 and was subsequently appointed an Administrative Officer in 1971. He rose to his present rank of Secretary, Government Secretariat in 1995. During the early years of his career, he held appointments in Finance Branch, Civil Service Branch and the former City and New Territories Administration. He was on secondment to the Asian Development Bank from 1977 to 1978. In 1981, he was sent to the Harvard University, where he completed a Master in Public Administration specialising in economic affairs. He was Deputy Director of Trade from 1984 to 1985, Deputy Secretary in the former General Duties Branch from 1985 to 1989, Director of Administration from 1989 to 1991 and Director-General of Trade from 1991 to 1993. He took up the present post of Secretary for the Treasury in May 1993.

End/Tuesday, March 7, 1995

3

Appointments of senior Government officials ♦ * ♦ ♦ ♦

The Government announced today (Tuesday) a series of appointments at senior levels of the Administration.

Mr Kwong Ki-chi will be appointed Secretary for the Treasury in April 1995. He will succeed Mr Donald Tsang who will proceed on leave and then undertake a series of visits and familiarisation briefings related to his future post of Financial Secretary.

Mr Rafael Hui will be appointed Secretary for Financial Services in September 1995. He will succeed Mr Michael Cartland who has been directed to retire in the interest of localisation. Mrs Lily Yam will take over from Mr Hui as Commissioner for Transport in July 1995.

Mr Dominic Chan will be appointed Director of Audit in May 1995. He will succeed Mr Brian Jenney who is due to retire.

Mr Alan Lai will take over from Mr Kwong Ki-chi as Deputy Secretary for the Treasury in May 1995.

Brief biographical notes on these officers are:

Mr Kwong Ki-chi. JP

Aged 43. Mr Kwong first joined the Civil Service in 1972 and was subsequently appointed an Administrative Officer in 1978. He rose to his present rank of Administrative Officer Staff Grade Bl in 1993 and will be promoted to Administrative Officer Staff Grade A in May 1995. He served in a number of branches and departments including the former Trade, Industry and Customs Department, Environment Branch, City and New Territories Administration, Finance Branch and Monetary Affairs Branch. He was Deputy Commissioner of the Hong Kong Government Office in London from 1989 to 1992. He took up the present post of Deputy Secretary for the Treasury in April 1992.

4

Mr Michael D Cartland, JP

Aged 49. Mr Cartland joined the Administrative Service in 1972 and rose to his present rank of Administrative Officer Staff Grade A in 1991. During the early years of his career, he held appointments in the former Social Services Branch, Government House, the former New Territories Administration, Security Branch and the former Trade, Industry and Customs Department. He was Deputy Director of Trade from 1982 to 1984, Counsellor(Geneva) from 1984 to 1986, Permanent Representative of Hong Kong to the GATT from 1986 to 1988, Deputy Secretary for Trade and Industry from 1988 to 1990 and Director of Social Welfare from 1990 to 1992. He took up the present post of Secretary for Financial Services in 1993.

Mr Rafael Hui Si-yan, JP

Aged 47. Mr Hui first joined the Civil Service in 1970 and was subsequently appointed an Administrative Officer in 1971. He rose to his present rank of Administrative Officer Staff Grade A in 1994. During the early years of his career, he held appointments in a number of branches and departments including Home Affairs Department, Security Branch, Economic Services Branch and Transport Branch. He was seconded to ICAC from 1977 to 1979 and attended an overseas training programme in Harvard from 1982 to 1983. He was Deputy Secretary-General in the former UMELCO from 1985 to 1986, Deputy Secretary for Economic Services from 1986 to 1990, Deputy Secretary for Works from 1990 to 1991, when he was appointed Director, New Airport Projects Co-ordination Office. He took up the present post of Commissioner for Transport in November 1992.

Mrs Lily Yam Kwan Pui-ying. JP

Aged 48. Mrs Yam joined the Administrative Service in 1969 and rose to her present rank of Administrative Officer Staff Grade Bl in 1994. She served in a number of branches and departments including Urban Services Department, Home Affairs Department, Education and Manpower Branch and Civil Service Branch. She was an Assistant Director and later a Senior Assistant Director in ICAC from 1978 to 1984. On return from an overseas training programme in Harvard, she joined Civil Service Branch in 1985 and was appointed Commissioner for Television and Entertainment Licensing from 1989 to 1991. She became Deputy Head, Central Policy Unit in 1991 and Secretary-General of the Standing Commission on Civil Service Salaries and Conditions of Service the following year. In 1994, she was appointed Secretary to the ICAC Review Committee. She is now serving as Chairman of the 1995 Administrative Officer Recruitment Board.

5

Mr Brian G Jenney. OBE

Aged 59. Mr Jenney joined the Hong Kong Government as an Administrative Officer in 1969 and was promoted to Administrative Officer Staff Grade C in 1974. He was appointed Principal Assistant Financial Secretary in Finance Branch in 1981 and subsequently Senior Principal Assistant Financial Secretary in 1987. He was appointed Director of Audit in April 1992.

Mr Dominic Chan Yin-tat. JP

Aged 51. Mr Chan joined the Hong Kong Government as an Auditor in 1969 and was promoted to Senior Auditor in 1976, Principal Auditor in 1980 and Assistant Director of Audit in 1982. He was promoted to Deputy Director of Audit in May 1993.

Mr Alan Lai Nin> JP

Aged 43. Mr Lai joined the Administrative Service in 1976 and rose to his present rank of Administrative Officer Staff Grade B in 1993. He served in a number of branches and departments including Civil Service Branch, the former New Territories Administration, Home Affairs Department and the former UMELCO. He was on secondment to the ICAC from 1984 to 1987. He was Assistant Director-General of Trade from 1987 to 1991 and later became Deputy Director-General of Trade from 1991 to 1993. He was appointed Deputy Director of Administration from 1993 to 1995. He is now serving as Vice-Chairman, 1995 Administrative Officer Recruitment Board.

Attention News Editors :

Following arrangements have been made for the press to meet the officers today (Tuesday):

1 pm Mr Rafael Hui, Secretary for Financial Services (Des), at Transport Department Headquarters, 41/F, Immigration Tower, 7, Gloucester Road, Wan Chai

2 pm Mr K C Kwong, Secretary for the Treasury (Des), at Press Room, Ground Floor, Central Government Offices

6

3 .15 pm Mr Donald Tsang, Financial Secretary (Des), at Room 442, Main Wing, Central Government Offices

4 pm Commissioner for Transport (Des), Mrs Lily Yam, at Room 933, West Wing, Central Government Offiices

5 pm Director of Audit (Des), Mr Dominic Chan, at GIS Press Conference Room, 5/F, Beaconsfield House, Queen's Road Central

The Chief Secretary, Mrs Anson Chan, together with Mr Donald Tsang, Secretary for Housing Mr Dominic Wong, Secretary for Security Mr Peter Lai, Secretary for Planning, Environment and Lands (Des) Mr Bowen Leung, Mr Rafael Hui and Mr K C Kwong, will be available for a photo call tomorrow (Wednesday) at 8.45 am in Room 501, Main Wing, Central Government Offices.

Reporters and photographers are requested to assemble at the Press Room, Ground Floor, Central Government Offices, before 8.30 am.

Officers from Secretariat Press Office will be on hand to assist.

End/Tuesday, March 7, 1995

7

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

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, the Financial Secretary, Sir Hamish Macleod and the Financial Secretary (Designate), Mr Donald Tsang, at the Central Government Offices after the Executive Council meeting today (Tuesday):

Governor: As I think you know, we're making today a number of announcements about important appointments in the Civil Service, these are further steps along the road to the localisation of the senior positions here in Hong Kong and is a process that we almost completed. The most significant of the appointments is, of course, the appointment of a new Financial Secretary. There will be many future occasions for paying tribute to the work of Sir Hamish Macleod who'll be leaving his post in September. But I would like at this moment to pay tribute to his 30 years of service to Hong Kong, most recently, his work as Financial Secretary. He's been, I think, one of the most outstanding Financial Secretaries in Hong Kong's history, making a significant contribution not only to the prosperity and well-being of this community, but playing as well a regional role as one of the most creative forces behind the development of APEC and one of the main proponents of APEC's transformation into one of the foremost organisations committed to global free trade. So Sir Hamish has done a great deal of which he should be proud and for which Hong Kong should be grateful. I am sure that the appointment of Donald Tsang as the next Financial Secretary in September will be warmly and widely welcomed in the Civil Service and in the broader community. Donald has been a member of the Civil Service for 27 years. This appointment crowns a brilliant career in a number of different branches of government. He's extremely well-known in Hong Kong and 1 think respected for his intellect, for his energy, for his professionalism, for his dedication, for his commitment to the well-being of Hong Kong. So 1 am delighted to be able to make this announcement, and others are being made with photo calls and so on later today and tomorrow. Hamish, would you like to say a word?

FS: First, Governor, thank you very much for those very kind remarks. 1 made a pretty clear hint in my budget speech by referring to a close colleague and good friend and of course I am very happy now to see Donald as Financial Secretary (Designate). He's worked with me over the years not just at present as Secretary for Treasury, but in previous incarnations, for instance, in trade. Our path crossed and over the years they have crossed many times. I guess this must be one of the easiest hand-overs in the Government since he's already of course intimately involved in the budgetary process. So, I think, Donald will be an outstanding Financial Secretary. 1 am delighted to see him coming forward now as my replacement. Thank you.

8

FS (Designate): Governor, thank you very much for your kind word. I am very deeply honoured by the appointment. I know that honour comes with considerable and formidable responsibility and challenge. The challenge is ability to contribute to a smooth transition to Chinese sovereignty and to be able to serve the people of Hong Kong after that. It is indeed my great honour to serve this community of mine. Sir Hamish, as you know, is my good friend. For the past two decades, he has been my best tutor in the service. He's, in my eye, a civil servant of the highest ability and integrity. He's indeed an almost impossible act to follow. But I shall do my best. Thank you very much.

Governor: I think I am right in saying that you're giving a press conference this afternoon, Donald. There will be conceivably some speculation about what this means. What I want to assure you it doesn't mean is that from now on I will be wearing a bow tie. That is not going to happen. Just for the record, I wrote to Director Lu Ping about these appointments yesterday. Thank you very much.

Question: The appointment of a new Chinese, the first Chinese Financial Secretary can help to discuss with the Chinese over the budgetary concession list...

Governor: I am sure that the arrangements we've suggested to Chinese officials would lead to constructive negotiations and discussions whoever was carrying them out. But 1 am also sure that Chinese officials will have as much respect for Donald Tsang as I am sure they have for Sir Hamish Macleod. If ever there was a justification for the remark that the proof of the pudding is in the eating, it's the state of the Hong Kong economy which is a tribute not only to the exceptionally hard work of the people of Hong Kong, not only to the gifted entrepreneurism of the people of Hong Kong, but also a tribute to the successful, skilful and prudent management of Hong Kong's finances by a succession of Financial Secretaries, most recently and brilliantly Sir Hamish Macleod. And that is a tradition which would be carried on by Donald Tsang who I know will do the job exceptionally well. Thank you very much indeed.

Question: Governor, do you think that Mr Donald Tsang's visit to Beijing can help to solve the problem about the making of the budget of 96/97 to 98?

Governor: I don't think there should be a problem about that at all. We've demonstrated our determination to secure the economic prosperity and stability of Hong Kong and I hope that Chinese officials will join us in that enterprise. The proposals I put forward in my Legco speech, proposals we discussed with Chinese officials last November or put to Chinese officials last November and discussed with them in December, those proposals are eminently sensible. I think that they're widely regarded as sensible by the community, and 1 am sure they'll lead to good discussions and dialogue. Everybody will know that in Donald Tsang, we have a man with an extremely good mind, a tough, honest and honourable negotiator, who always do his best for the people of Hong Kong.

End/Tuesday. March 7, 1995

9

Postage rates, fees and charges to rise in June ♦ ♦ ♦ ♦ ♦

The Postmaster General, Mr Mike Pagliari, announced today (Tuesday) that principal postage rates and miscellaneous postal fees and charges would be increased from June 1 this year.

These rates and charges were last revised on November 1, 1993.

Commenting on the revised rates at a press conference, Mr Pagliari said: "As a result of the increase in operating costs over the past one-and-a-half years due to inflation, increased staff costs and higher payment to overseas postal administrations, it is necessary to revise postage rates and charges in order to restore their real value.

"The overall weighted average increase for postage rates will be 14.7 per cent, which is in line with inflation of about 14 per cent for the period from the last increase in November 1993 to June 1995," he said.

The marginal difference is due to rounding off of certain postage rates to fit the coinage.

The basic rates for local letters and printed papers will be increased by 20 cents, from $1 to $1.20 for letters, and from 90 cents to $1.10 for printed papers.

For surface letters and printed papers to China, Macau and Taiwan, the basic rates will be increased from $1.20 to $1.50 and from $1 to $1.30 respectively.

For surface mail to other countries, the basic rates will be increased from $2 to $2.30 for letters and from $1.80 to $2.10 for printed papers.

The basic rates for air mail letters will be increased by 20 cents and for printed papers by 30 cents.

For Zone 1 (mainly Asian countries), basic rates at the first weight step will be increased from $1.90 to $2.10 for letters and from $1.30 to $1.60 for printed papers.

For Zone 2 (rest of the world), basic rates will be increased from $2.40 to $2.60 for letters and from $1.80 to $2.10 for printed papers.

Elaborating on the postage rate increases, Mr Pagliari said: "Local and surface mail services have traditionally been operating at a deficit. These services are currently being cross-subsidised by other services.

10

"To reduce cross-subsidisation, the increases for local mail and surface mail to China, Macau and Taiwan will be slightly higher than inflation while the increases for surface mail to other destinations and for all air mail are below inflation.

"We have had a growing problem with large corporations and commercial mailers sending their printed papers in a manner that cannot be processed by the Mechanised Letter Sorting System (MLSS)," he said.

The major problems are plastic covers, over-sized printed papers or unenveloped printed papers.

"This results in the Post Office having to incur substantially higher operating costs.

"In addition there has been public concern over the rapidly increasing use of plastic envelopes.

"In order to discourage such practice, printed papers that cannot be processed by the MLSS will no longer be entitled to the printed paper discount," Mr Pagliari said.

In line with the new charging system introduced by Universal Postal Union Congress which was held last year, the pricing structure for Bulk Air Mail, which is commonly used by commercial organisations in sending airmail items overseas in bulk, will be changed to recover the additional cost.

Unlike the current system of charging postage according only to the weight of the shipment, postage for this type of mail will be charged on both the weight and the quantity of the items posted. This will result in average increases of 4.3 per cent.

"Even after these increases, Hong Kong postal charges remain among the lowest in the industrialised world.

"Given that postage constitutes only a small proportion of overall consumer expenditure and business costs, the increases are unlikely to have any significant impact on general inflation," he said.

Mr Pagliari pointed out that because increase in costs incurred was higher than inflation, the Post Office was absorbing part of the increase through productivity improvement.

"Were postage rates and postal charges maintained at existing levels, the Post Office would incur a loss of $125 million in 1995-96, which would have to be subsidised from General Revenue.

- n -

"Also, even with the increases, local and surface mail services will continue to operate at a deficit," he added.

There are also increases in some of the miscellaneous fees and charges that at present are operating at a deficit. The notable example is registration fee which will be increased from $11 to $13.

Also, annual rental for post office boxes will be increased, for example, from $570 to $650 for large boxes and from $450 to $500 for small boxes at the General Post Office and the Tsim Sha Tsui Post Office.

Rentals at other post offices attract smaller increases.

Owing to the tremendous increase in requests for redirection of mail, the Post Office is incurring a substantial loss for this service.

To recover costs, the redirection service which is currently provided free for the first three months will be charged at $100 for private users and $300 for business users.

End/Tuesday, March 7, 1995

Governor to attend Fortune Global Forum

*****

The Governor, the Rt Hon Christopher Patten, will leave for Singapore tomorrow (Wednesday) to attend a world business forum organised by the Fortune magazine group.

Mr Patten will give a keynote address at a breakfast session of the "Fortune Global Forum" on Thursday (March 9).

Top policy makers and prominent business leaders from different countries have been invited to take part in the forum, which will last from March 8 to 10. They include the Prime Minister of Singapore, Mr Goh Chok Tong, the Senior Minister, Mr Lee Kuan Yew, the Prime Minister of Pakistan, Ms Benazir Bhutto, and former UK Prime Minister, Lady Thatcher.

Mr Patten will deliver a speech entitled "Freedom Under The Law - The Right Road To Prosperity".

12

During his two-day stay in Singapore on March 8-9, the Governor will have separate meetings with Prime Minister Goh, Senior Minister Lee, the Deputy Prime Minister, Brigadier-General Lee Hsien Loong and Lady Thatcher.

Mr Patten will depart for Singapore at 9 am on CX 717 tomorrow (Wednesday) and will return to Hong Kong at 9.45 pm on CX716 on Thursday.

Attention News Editors:

There will be no press facilities at the airport for the Governor's departure. A speaking position will be set up on his return.

End/Tuesday, March 7, 1995

LegCo panels briefed on community response to airport consultation *****

Acting Secretary for Economic Services, Mrs Elizabeth Bosher, and Director of Civil Aviation, Mr Peter Lok Kung-nam, this (Tuesday) morning briefed members of the Legislative Council's Economic Services and Environmental Affairs Panels on the Administration's proposals to enhance the operating capacity of Kai Tak Airport.

The Administration, over the past few months, has invited views of the community on the proposals. A report on the submissions was presented to members today.

Up to the end of February, a total of 94 written submissions had been received from District Boards, organisations and individuals since the consultation exercise was launched on December 19 last year.

The proposals suggest providing a total of 26 additional slots within the airport's existing operating hours in the periods between 6.30 am and 7 am and between 9 pm and 11.30 pm; and extending the airport's operating hours by one hour to provide six additional departure slots.

The consultation paper was issued to all 18 District Boards and particular emphasis was placed on consulting the five District Boards representing residents who would be most directly affected by the proposals, that is Kowloon City, Eastern, Sham Shui Po, Kwun Tong and Wong Tai Sin.

13

Other interested organisations were also given copies of the paper and briefing sessions were arranged for organisations in the aviation and tourism sectors.

Among the 94 submissions, 45 are in support of the proposal; 13 do not support the extension of the airport's operating hours and 34 are opposed to the entire proposal; two have mixed opinions.

As far as District Boards are concerned, six raised objection to the extension of the airport's operating hours but held different views on whether additional aircraft movements within the existing operating hours are acceptable.

The principal concern of many District Board members is the large number of people who would be affected by the additional noise nuisance, if the proposals were implemented.

Some District Board members recognise the potential economic benefits to be brought by the extra flights.

Representations received from the business sector, totalling 40, are unanimous in their view that the proposals should be supported. The submissions covered responses from 14 hotels, four travel agencies, five airlines, three travel related companies and 14 various trade and business organisations/chambers of commerce.

The tourism and aviation industries also consider it important to build up a stronger traffic base to benefit the new airport. They worry that if the current demand for air services is accommodated elsewhere through diversion of traffic, the economy of Hong Kong will be adversely affected in the long run.

Three political parties have petitioned the Government with signatures and opinions collected from the affected residents, expressing opposition to the proposals.

Representations from individual District Board members, environmentalists and residents groups argue, among other things, that the proposals would adversely affect the environmental quality and well- being of local residents.

Individual respondents who wrote in support of the proposals believe that additional Hights would generate more business and employment opportunities for Hong Kong people.

The briefing to members of the panels today is part of the Administration's consultation exercise to invite views on the proposals. Ail comments received will be carefully considered, before the Administration decides on how best to proceed.

End/Tuesday, March 7, 1995

14

Views on the implementation of Covenant invited *****

Views are invited from the Legislative Council, non-govemment organisations and other interested parties on the state of implementation of the International Covenant on Civil and Political Rights in Hong Kong (ICCPR).

Following the Government's undertaking to give the Legislative Council, non-govemment organisations and other interested parties a formal opportunity to express their views on the state of implementation of the Covenant in Hong Kong before making a submission to the United Kingdom (UK), a letter was issued to the LegCo Panel on Home Affairs today (Tuesday).

A Government spokesman said the UK Government ratified the Covenant in 1976 in respect of the UK and its dependent territories, including Hong Kong.

"As a State Party to the Covenant, the UK Government is required under Article 40 of the Covenant to submit periodic reports to the Secretary General of the United Nations, for transmission to the Human Rights Committee for consideration," the spokesman said.

The UK Government has recently notified the Administration that it intends to submit its Fourth Periodic Report under the ICCPR in respect of the Dependent Territories to the United Nations in summer this year. The report will cover developments up to December 31, 1994.

The Hong Kong Government will contribute to the report by preparing a draft submission to the UK on the implementation of the Covenant in Hong Kong.

"To enable the Administration to take into account views during the drafting of the report, and also to meet the deadline of submission set for this summer, any comments will need to reach the Administration before April 20. 1995."

To facilitate comments, the Administration has prepared an outline of topics which it intends to include in the draft report.

Non-govemment organisations or individuals who would like to express their views can write to the Secretary for Home Affairs before April 20. 1995.

Copies of the outline of the draft report can be obtained from the Home Affairs Branch. 31st floor. Southorn Centre. Wan Chai, on request.

End/Tuesday. March 7. 1995

15

ICC visits in Hong Kong

* ♦ * * ♦

Members of the Infrastructure Co-ordinating Committee (ICC) now in Shenzhen will continue their programme in Hong Kong tomorrow (Wednesday).

They will visit the Lok Ma Chau border crossing and the northwestern New Territories tomorrow and attend a seminar on cross-border infrastructure co-ordination on Thursday.

Attention News Editors:

The following press facilities will be provided for covering the Hong Kong programme:

Helicopter tour

The Director of Planning, Dr Peter Pun, will accompany some of the Chinese members on a helicopter tour tomorrow (Wednesday) of Hong Kong.

There will be a photo opportunity to cover their departure from the helipad in Fenwick Street, Wan Chai. Media representatives should assemble outside the helipad at 8.30 am.

Visit to Northwest New Territories

The flying party will join other ICC members in Lok Ma Chau before proceeding on a tour of the northwestern New Territories which will include a visit to Blackpoint in Tuen Mun.

A press coach will leave for Blackpoint from the Peak Tram Station, Tramway Path, Garden Road at 12.45 pm tomorrow (Wednesday).

Those who wish to make their own way to Blackpoint should arrive at the viewing platform on the high ground above the power station in Blackpoint (further down from Tap Shek Kok Power Station) before 2.15 pm.

16

Seminar on Crossborder Infrastructure Co-ordination

A photo opportunity will be arranged for the media prior to the start of the seminar at the Conference Hall of the Central Government Offices on Thursday (March 9). Members of the media wishing to attend should assemble at the CGO press room at 9.15 am.

Representatives of the two sides will speak to the media after the seminar. Members of the media wishing to cover this event should assemble at the CGO press room at 12.15 pm.

Staff of the Secretariat Press Office will be on hand to assist in all these press facilities.

End/Tuesday, March 7, 1995

Secretary for Security to visit Vietnam * * * * *

The Secretary for Security, Mr Peter Lai, will pay a short visit to Vietnam between March 8 and 10, a Government spokesman announced today (Tuesday).

"Vietnamese migrant issues are high on the agenda of the Secretary for Security and he is anxious to make personal contact with his Vietnamese counterparts as soon as possible." the spokesman said.

During his brief stay in Hanoi, Mr Lai will call on ministers and officials of the Vietnamese Government who have responsibilities for migrant issues.

End/Tuesday, March 7, 1995

Cheung Ching funnel excavation completed *****

Excavation of the Route 3 Cheung Ching funnel - Hong Kong's widest road tunnel — has been completed this week, two months ahead of schedule.

This milestone in the Airport Core Programme (ACP) comes only 10 months after the tunnel breakthrough last May, which was marked by a ceremony at which the Chief Secretary, Mrs Anson Chan, officiated.

17

Blasting works in connection with the excavation have also ended. More than 440,000 cubic metres of spoil has been removed from the tunnel drilled through the centre of Tsing Yi Island.

"We are glad to report that the tunnel excavation has been completed, and well ahead of schedule," said Mr Duncan Siu, the Chief Engineer of the Route 3 Division of the Highways Department.

Mr Siu said a number of safety and monitoring measures had been implemented during excavation work to minimise its impact on the residential areas nearby.

"These include advance warning to residents before each blasting operation and stringent safety and noise controls.

"The measures covered the use of noise reduction equipment, controls on the amount of explosives used in each blast, and a ban on night-time work in places close to the residential areas.

"In addition, 24 stations have been set up to monitor the vibration levels caused by blastings," Mr Siu said.

The Cheung Ching Tunnel, 1.6 kilometres long, will have three lanes in each direction. It will form part of the Route 3 which is a major element in the ACP's highways network connecting the new airport at Chek Lap Kok and Tung Chung new town to the urban areas in Kowloon and Central Hong Kong.

Work on the tunnel began in March 1993 following the award of an $856 million contract to Dragages et Travaux Publics with the first blast taking place two months later.

The tunnel was excavated by blasting through solid volcanic rock and granite working inwards from cither ends.

"For the first time in Hong Kong, two drilling machines of a type known as an 'Automatic Jumbo', equipped with computers and operated with the aid of laser beams, were used to drill the holes for explosives, further improving accuracy in blasting and in the amount of explosives needed." Mr Siu said.

"The spoil was transported by barge to Chek Lap Kok and other Government works sites for use as fill for reclamation works there." he said.

Mr Siu said construction of the Cheung Ching funnel was on schedule for completion in early 1997.

18

"Over 57 per cent of the works have been completed so far," he said.

"The remaining works include the laying of tunnel concrete lining, the tunnel's drainage and road pavement works, the installation of supporting facilities including the traffic control and surveillance systems, the ventilation systems, and the lighting and power supply systems, as well as the construction of 900 metres long associated roads," he said.

End/Tuesday, March 7, 1995

Delinking of Infoline from IDD service *****

The Telecommunications Authority, Mr Alexander Arena, announced today (Tuesday) that he had given his approval to Hong Kong Telephone Company Limited (HKTC) to implement a new Infoline access arrangement which would effectively delink the Infoline service from the IDD service.

The new arrangement is aimed at striking a balance between a variety of community concerns about the existing Infoline access arrangements and the continued provision of the Infoline sendee to those that consciously decide to acquire the Infoline service.

"The new arrangement will affect not only the new IDD customers but also all existing IDD customers," Mr Arena said.

Starting from tomorrow (Wednesday), all new IDD customers will not be provided with automatic access to the Infoline service unless they specifically request for such a provision.

In addition, during the period from March to June this year, all existing IDD customers will be requested to indicate whether they would like to be continuously provided with access to Infoline sendee after July 1. 1995.

HKTC will provide Infoline access according to customers' instructions.

In case no instruction is received from a customer, HKTC will stop providing the customers with access to the Infoline level "9" programmes (including adult programmes, dating programmes and children programmes) starting from July 1, 1995, but access to the non-level "9" Infoline programmes will continue unless the customer subsequently requests a change.

19

Mr Arena said: ’’The arrangement for only barring the level '9' programmes for those customers who do not respond is made with a view to meeting the dual requirements of preventing children from easy access to the Infoline level ’9' programmes and, in the mean time, to minimising the inconvenience that may cause to an Infoline user who has omitted to give his instruction to HKTC.

"In any case, customers may request a change of their Infoline access arrangement by contacting HKTC, even after they have indicated their choices in this opt-in exercise," he explained.

"I have also noted that there are requests from the public for the separation of children programmes from adult programmes and dating programmes.

"I agree that there is a need for such a separation. HKTC has committed that it would perform such a separation by end 1995 when the prefix of Infoline service will change from '173' to '900'," Mr Arena added.

The new access arrangement for Infoline service has been discussed between the Office of the Telecommunications Authority (OFTA) and HKTC for a number of months.

Before arriving at the final decision, the Telecommunications Authority considered experiences in overseas countries and consulted the information providers, the Commissioner for Television and Entertaining Licensing (CTEL) and the Telecommunications Users and Consumers Advisory Committee (UCAC).

"I would like to thank all who have contributed to the development of this new access arrangement for Infoline service, particularly the UCAC Members who have given a lot of valuable advice to OFTA on this subject," Mr Arena said.

End/Tuesday, March 7, 1995

Pharmacy registration examination results announced ♦ ♦ ♦ ♦ ♦

The Pharmacy and Poisons Board of Hong Kong announced today (Tuesday) results of the registration examinations for pharmacists held in December last year.

A total of 61, 56 and 52 candidates sat for the examinations in "Pharmacy Legislation in Hong Kong", "Pharmacy Practice" and "Pharmacology" respectively with corresponding passing rates of 34.4 per cent, 42.9 per cent and 69.2 per cent.

20

Apart from meeting other conditions set by the Board, a pharmacy graduate returning from overseas who intends to be registered as a pharmacist is required to pass all the three subjects.

The Board conducts its examinations twice a year, normally in June and December.

End/Tuesday, March 7, 1995

Immigration officers on attachment to UK Immigration Service ♦ ♦ ♦ ♦ ♦

Four immigration officers will leave for the United Kingdom later this month for a six-week attachment programme with the United Kingdom Immigration Service.

They will visit branches of the Home Office handling immigration and nationality matters as well as immigration offices and ports.

At a briefing before their departure, the Director of Immigration, Mr Laurence Leung Ming- yin, pointed out that the Immigration Department placed great importance on giving its staff professional training.

He said owing to the growing complexity of immigration work, members of the service were required to be vigilant and alert towards changes that had taken place.

Mr Leung said he hoped that the attachment would provide a good opportunity for the officers to widen their horizon and to have a better understanding of the work of their counterparts in the United Kingdom.

The four officers are acting Senior Immigration Officers, Mrs Chow Pang Siu-fong, Mr Sham Kin-fai and Mr Chan Kwok-ki, and acting Immigration Officer Mr Li Kin-sing.

End/Tuesday, March 7, 1995

21

Views on compulsory education sought ♦ ♦ ♦ ♦ ♦

The Board of Education is inviting school councils, associations, sponsoring bodies and supervisors and principals of all primary and secondary schools to express their views and suggestions on the implementation of the nine-year free and compulsory education.

Letters and circulars have been sent to these organisations inviting them to send their submissions on or before March 25, 1995.

Views and suggestions in writing should be sent to the Secretary for the Subcommittee on Review of School Education, Board of Education, at Room 1161, Wu Chung House, 213 Queen’s Road East, Wan Chai.

• The Sub-committee of the Board of Education on Review of School Education was formed to study the educational system with a view to identify areas of concern and to make recommendations to the Board of Education on measures to further enhance the system.

Meanwhile, chairmen of school councils, associations, sponsoring bodies and supervisors and principals if all primary and secondary schools are also invited to attend two public forums to be held on March 25, 1995.

Participating return slips should be sent to the Secretary of the Sub-committee on before March 17.

Details of the forums are as follows:

1st Forum:

Date Time Venue

Saturday, March 25, 1995 9 am - noon

School Hall

Tang Shiu Kin Victoria Technical School 5 Oi Kwan Road, Wan Chai, Hong Kong

2nd Forum:

Date Time Venue

Saturday, March 25, 1995

2 pm - 5 pm

School Hall

Methodist College

50 Gascoigne Road, Yau Ma Tei, Kowloon

End/Tuesday, March 7, 1995

22

Hong Kong Monetary Authority tender results ♦ ♦ ♦ ♦ ♦

Tender date 7 Mar 95

Paper on offer EF bills

Issue number Q510

Amount applied HK$7,880 MN

Amount allotted HK$ 1,500 MN

Average yield accepted 5.96 PCT

Highest yield accepted 5.97 PCT

Pro rata ratio About 100 PCT

Average tender yield 6.03 PCT Hong Kong Monetary Authority

Tenders to be held in the week beginning March 13, 1995

Tender date 14 Mar 95 14 Mar 95

Paper on offer EF bills EF bills

Issue number Q511 H560

Issue date 15 Mar 95 15 Mar 95

Maturity date 14 Jun 95 13 Sept 95

Tenor 91 days 182 days

Amount on offer HKS1,500+300 MN HKS800+160 MN

End/Tuesday, March 7, 1995

23

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

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

Opening balance in the account 2,498 0930 +225

Closing balance in the account 1,524 1000 +225

Change attributable to : 1100 +235

Money market activity +256 1200 +256

LAF today -1,230 1500 +256

1600 +256

LAF rate 4.25% bid/6.25% offer TWI 118.8 *-0.2* 7.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.14 15 months 2605 6.35 99.62 6.79

1 month 5.35 24 months 2702 7.50 100.63 7.28

3 months 5.96 29 months 3707 6.95 99.30 7.40

6 months 6.28 35 months 3801 8.00 101.26 7.64

12 months 6.67 58 months 5912 8.15 100.60 8.15

Total turnover of bills and bonds - $15,213 million

Closed March 7, 1995

End/Tuesday, March 7, 1995

DAILY INFORMATION BULLETIN

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

Wednesday, March 8,1995

Contents Page No,

Task Force to be set up following LegCo nod on MPF.................... 1

Transcript of media session by Deputy to the Governor................. 1

Land sales likely to bring $13.8 billion.............................. 3

98 Vietnamese migrants depart on orderly repatriation flight..... 4

Monitors' report on Vietnamese repatriation submitted to CS...... 5

Lockers provided for primary students................................. 6

HK needs broad education system....................................... 7

Ancient artefacts put on display...................................... 7

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

1

Task Force to be set up following LegCo nod on MPF

* * * * *

The Deputy to the Governor, Mrs Anson Chan, welcomed the decisive vote in the Legislative Council this (Wednesday) evening urging the Government to introduce as expeditiously as possible a mandatory, privately managed occupational retirement protection system (MPF) with provision for the preservation and portability of benefits.

"With this clear support, the Government will now set up a dedicated task force to work on the details of such a scheme," Mrs Chan said.

A consultant will also be engaged to advise on the technical aspects and will be required to submit an initial report before the end of April.

Speaking to media representatives after the Legislative Council had passed by a majority the Government's motion for the establishment of the MPF, Mrs Chan said that the Government would now inform the Chinese side of the result of today's motion debate and hoped to be able to discuss the proposed scheme with them as soon as possible.

"The Government will do its very best to put the primary legislation to LegCo before the end of the current session," she said.

End/Wednesday, March 8, 1995

Transcript of media session by Deputy to the Governor

* * * * *

Following is the transcript of the media session by the Deputy to the Governor, Mrs Anson Chan, after a motion debate on retirement protection in the Legislative Council today (Wednesday):

2

Mrs Chan: This has been a long but important debate on a very complex subject, that is, how to provide for retirement protection for the elderly in our community. We very much welcome the decisive votes in favour of a mandatory privately operated retirement protection system. With the clear support from Legislative Councillors this afternoon, the Government will now proceed speedily to set up a task force in order to examine further the details of a proposed mandatory privately operated retirement system. We will be engaging consultants and will require the consultants to submit preliminary report by the end of April. It would be our aim to try and set up this scheme as soon as possible and with this objective in mind, we would also hope to be in a position to put primary legislation before the Legislative Council before the end of the current legislative session. As to the details, I think that the main features of such a scheme have already been outlined by the Secretary for Education and Manpower, so I won't elaborate on those further. There will clearly be further details and in particular we'll need to address the concerns that have been expressed by individual members during the debate this afternoon. All these concerns will be taken on board and we will be consulting with the consultants and also with the insurance industry.

Question: Can you tell us when do you plan to consult China ?

Mrs Chan: We will be notifying the Chinese side after this afternoon's motion debate. We hope to be able to discuss the proposed scheme with the main features as outlined in this afternoon's debate with the Chinese side as soon as possible, because clearly we will need Chinese support if the scheme is to get off the ground as soon as possible.

Question: Will submitting the legislation to LegCo be subject to Chinese approval?

Mrs Chan: I would very much hope that as a basis of our discussion with the Chinese that there will be sufficient support from the Chinese for draft legislation to be put before the Legislative Council. I think the Chinese side much be equally concerned as the Hong Kong Administration about the growing number of elderly people in our community and would wish to see a sensible, practical and pragmatic scheme set up as soon as possible to address the financial security needs of growing number of elderly people in our community.

End/Wednesday, March 8, 1995

3

Land sales likely to bring $13.8 billion *****

Land sales by auction and tender this financial year (1994/95) is likely to generate a revenue of about $13.8 billion, compared to last year's $18.3 billion.

Speaking before the Rotary Club of Kowloon Golden Mile today (Wednesday), the Director of Lands, Mr Bob Pope, said this shortfall in revenue was mainly due to the large number of sales (13) being conducted in March.

"However, this will result in a very large carry forward of revenue in the early part of 1995/96 as the balance of the premium paid at the auctions will be payable in April," Mr Pope said.

Mr Pope also said the revenue from lease modifications and exchanges for 1994/95 was likely to be around $12 billion, which was close to the previous year's estimate.

"Revenue from all sources, including private treaty grants in 1994/95, will be around $29 billion, and for 1995/96 is estimated to be $37 billion, which is 11 per cent of Government's revenue and this will be shared equally, after deducting the cost of land production, with the future SAR Government land fund," Mr Pope added.

Mr Pope also spoke on the work of the Task Force on Land Supply and Property Prices to help control skyrocketing prices.

"The Task Force imposed certain measures through the Consent Scheme administered by my department to dampen speculation.

"It also identified sites to increase the supply of new land in order to provide additional 45,000 - 60,000 flats over the next six years.

"These measures have brought order into the chaos that previously existed and have brought property prices down by about 20 per cent," Mr Pope added.

4

Mr Pope also noted that land disposal in Hong Kong was limited under Annex III of the Joint Declaration to 50 hectares (ha) per year, unless otherwise agreed by the Sino-British Land Commission.

"Each year, the circumstances are reviewed and the Land Commission has consistently agreed to dispose of more than 50 ha per year.

"The land disposal programme agreed by the Land Commission this year (1994/95) was originally 117 ha and as you know, they recently agreed to adjust the 1994/95 Land Disposal Programme to provide a further 1,293.46 ha.

"This is made up of 1,248 ha for the new airport, 30 ha for the Airport Railway Depot, 7.52 ha for development above Tai Kok Tsui and Tung Chung Railway Station and 7.94 ha for land for Home Ownership and Sandwich Class Housing Schemes.

"These developments will produce about 8,000 additional flats which on top of the 2,000 flats from additional sites earmarked for public housing, will produce the additional 10,000 flats identified by the Task Force on Land Supply and Property Prices," Mr Pope said.

End/Wednesday, March 8, 1995

98 Vietnamese migrants depart on orderly repatriation flight *****

A group of 98 Vietnamese migrants returned to Vietnam today (Wednesday) on the 21st flight under the Orderly Repatriation Programme.

All the returnees, comprising 36 men, 26 women, 17 boys and 19 girls, were from High Island Detention Centre. The oldest was 56 years old and the youngest six months old.

Most of them arrived in Hong Kong in 1989 with a small number coming to the territory in 1988, 1990 and 1991.

■ r

'/

- 5 -

The group brought to 1,187 the total number repatriated under the programme since it started in November 1991.

The returnees were transported to the airport early this morning for predeparture security checks before boarding their flight for Hanoi.

The Refugee Co-ordinator, Mr Brian Bresnihan, stressed that the Government was determined to repatriate all screened-out Vietnamese migrants to Vietnam.

"There is no future for them in Hong Kong and the best option for them is to volunteer to go back to Vietnam," he said.

End/Wednesday, March 8, 1995

Monitors' report on Vietnamese repatriation submitted to CS * * * * *

The monitors appointed to observe the Vietnamese Orderly Repatriation Programme operation today (Wednesday) have submitted their report to the Chief Secretary.

The two monitors, Mr Charles Cheung Wai-bun, a Justice of the Peace, and Dr Jaime Bendeck from Medecins Sans Frontieres, observed the transfer of 97 Vietnamese migrants from Victoria Prison to the airport this morning.

They also observed this group of Vietnamese migrants, and a woman who was transferred from a hospital to the airport direct, boarding the plane.

The monitors commented that the operation was efficient and orderly and that no violence was observed.

End/Wednesday, March 8, 1995

6

Lockers provided for primary students *****

The Deputy Director of Education, Miss Elaine Chung, today (Wednesday) visited an aided primary school in Mong Kok to see for herself how the provision of lockers can help alleviate the problem caused by overweight school bags.

The school is one of the first batch of Government and aided primary schools provided with a total of 50,022 lockers in January and February this year.

It is expected that the second batch of another 180,000 lockers will be installed later this year and in 1996.

While touring the school, Miss Chung exchanged views with the school headmaster and teachers on school bag problem and management of lockers.

Miss Chung was impressed by the innovative ideas of the school administration in the installation of lockers. They were installed in classrooms instead of in the corridors. And each locker was shared by a pair of students.

"Such arrangement has the effect of space saving," she said.

She also praised the school administration for adding new device to the lockers to resolve the problem of losing locker keys.

The Education Department has issued guidelines listing the measures and safety precautions to be observed by schools to ensure the proper use of lockers.

Besides installing lockers, the department has also held discussions with publishers on measures to reduce the weight of textbooks.

Miss Chung was happy to see that the provision of lockers for students could be materialised in such a short time.

She appealed to parents and students to pack their school bags every day according to the timetable and to use light and secure satchels.

End/Wednesday. March 8, 1995

- 7, -

HK needs broad education system ♦ * * * *

- - * rP •: i.. 1- ■ • i

Mrs Patten congratulated the English Schools Foundation on their commitment and professionalism in providing all-round education for students.

The international schools offered to students a relaxed and stimulating atmosphere, with a broad curriculum and equal emphasis on a wide range of extra-curricular activities.

At the opening ceremony of its sixth art exhibition today (Wednesday), she said: "This helps not only their intellectual and social development but brings out the creativity all children are bom with."

Hong Kong needs a broad education system where each student is helped to achieve not just their personal best in academic subjects but also in other areas such as arts, music and literature.

"This art exhibition is a good example of their philosophy put into practice," she said.

Mrs Patten encouraged the young artists to continue to develop their potential, and expressed her gratitude to the teachers for their hard work.

End/Wednesday, March 8, 1995 .. , ,

. U <s . - 'jit.'

Ancient artefacts put on display

*****

Members of the public interested in archaeology will have a chance to see for themselves a wide range of heritage items discovered in Hong Kong in the past five years at an exhibition, starting from Friday (March 10).

The exhibition will be held at the Antiquities and Monuments Office (AMO) in Tsim Sha Tsui.

8

An amazing mass of archaeological data which will enable the public to reinterpret the everyday life and achievements of the early inhabitants of Hong Kong will also be put on display.

Entitled "Rescuing Our Archaeological Past - Major Discoveries Since 1989", the event coincides with the launching of the five-day Conference on Archaeology in Southeast Asia, organised by the University of Hong Kong's Museum and Art Gallery with the assistance of AMO.

.. .j.Oi

The Chairman of the Antiquities Advisory Board, Mr David Lung, will open the exhibition. The Secretary for Recreation and Culture, Mr James So, will present certificates of merit to six local organisations in recognition of their help in the preservation of antiquities and monuments.

:• 1 . f.C

They are the Provisional Airport Authority, Sun Hung Kai Real Estate Agency Ltd, the Land Development Corporation, China Light and Power Co Ltd, Proper Trip Development Ltd and Cheuk Fan Enterprise Ltd.

The exhibition will be open to the public during office hours until the end of July.

Attention News Editors:

You are invited to cover the opening ceremony and attend a preview of the exhibition which will take place at the Antiquities and Monuments Office, 136 Nathan Road, Tsim Sha Tsui, at 5.15 pm tomorrow (Thursday).

End/Wednesday, March 8, 1995

Hong Kong Monetary Authority money market operations

*****

Time Cumulative change

$ million (hours) ($million)

Opening balance in the account 1,524 0930 +1,166

Closing balance in the account 2,131 1000 +1,166

Change attributable to : 1100 +1,224

Money market activity +1,153 1200 +1,225

LAF today -546 1500 +1,175

1600 +1,153

LAF rate 4.25% bid/6.25% offer TWI 117.7 *-1.1* 8.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.20 15 months 2605 6.35 99.67 6.74

1 month 5.32 24 months 2702 7.50 100.79 7.18

3 months 5.90 29 months 3707 6.95 99.48 7.31

6 months 6.26 35 months 3801 8.00 101.47 7.56

12 months 6.64 58 months 5912 8.15 100.85 8.09

Total turnover of bills and bonds - $24,004 million

Closed March 8, 1995

End/Wednesday, March 8, 1995

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, March 8,1995

Contents Page No,

Legislative Council meeting:

SEM on shelving of Old Age Pension Scheme.................... 1

LegCo adopts Govt motion on MPF.............................. 5

Shelving of Old Age Pension Scheme - SHW..................... 9

SEM's closing speech on retirement protection..................... 12

SHW speaks on retirement protection............................... 18

SEM on retirement protection...................................... 21

Proposed increase in Old Age Allowances poses intolerable burden on taxpayers................................................... 28

Rehousing policy for occupants of unauthorised rooftop structures. 30

Motion debate on rehousing of rooftop structure occupants... 32

Gas Safety’ (Amendment) Bill 1995........................... 34

Credit Unions (Amendment) Bill 1995.......................   35

Tai Lam Tunnel and Yuen Long Approach Road Bill............. 36

Funds sought for Government services........................ 40

Council for Academic Accreditation’s report tabled.......... 42

Provision of CAT scanners................................... 44

Review of urban renewal policy...........................................   45

Promotion of franchised business operations................................ 46

Border crossing points...................................................   47

Drug abuse in Pillar Point Vietnamese Refugee Centre....................... 49

Use of ICE not a trend..................................................... 50

Emission of exhaust gas from private cars.................................. 52

Falling of masonry and tiles............................................... 53

Squatter structures in Shek O.............................................. 56

Driving Offence Points System.............................................. 57

Recycling of waste materials............................................... 58

Designation of polling stations............................................ 59

Efforts continuing to improve recruitment and retention of nurses...... 64

Proposals on public broadcasting service being considered.................. 65

Squatter areas in HK....................................................... 67

Assessment of academic qualifications of civil service recruits............ 73

Occupancy rate of HK Industrial Technology Centre.......................... 74

Site for new China ferry terminal being identified......................... 76

Finances of Institute of Education and Academy for Performing Arts..... 77

LegCo passes motion on retirement protection system........................ 81

1

SEM on shelving of Old Age Pension Scheme *****

Following is a speech by the Secretary for Education and Manpower, Mr Michael Leung, on the motion debate on shelving of the Old Age Pension Scheme in the Legislative Council:

Mr President,

I will focus my response on Mr Yeung Sum's first part motion, my colleague, Secretary for Health and Welfare, will speak on the CSSA payments.

I should start by stating the basic policy on retirement protection, that is, we are talking about only one form of retirement protection. It is either on RPS or an OPS or as we have just agreed an MPF. It must be a system which is practicable, affordable, and sustainable. Acceptable to the people of Hong Kong to this Council and to the future sovereign power. Without these conditions, any scheme would be totally not acceptable, and certainly not possible to be implemented. Now that we have agreed to the MPF in an earlier motion, it is not our intention to reopen the question of the OPS. My response is simply to reply to some of the allegations made by some Members on our handling of the OPS. And I shall do so in as neutral a language as possible without causing some ill feelings. I know that some Members' feelings were hurt because they have perhaps been regretting what they have done before but I am, as I said, I could not assist them in this respect. It is a matter of the past. We cannot turn the clock back. ,l5

What I spoke in this Council on 9 November 1994,1 assured Members that we would consider the more than six thousand submissions on the OPS with great care and with an open mind. At the same time, I said that Government would implement the OPS subject to, among other things, endorsement by the community of our proposals as we put them. This we had made clear as far back as December 1993 when the proposal for OPS was announced for the first time in this Council.

As Members will recall, the consultation period on the OPS ended on 31 October 1994. We established a task force, specially, to analyse the submissions received, and to propose alternative recommendations where these were appropriate and acceptable.

3

2

On 27 January 1995 we released a full summary assessment of public opinion on the OPS consultation paper. In addition, full details of the original submissions, subject of course to the consent of those offers, of those submissions, have been made available to all Members of this Council and to the public. We have been handling this with great care and with great transparency. There is nothing to hide from the public and from this Council on all these documents. These are fully accessible to anyone who wishes to look at them seriously.

Let me now go over some of the main points in that assessment which have led us to the clear conclusion that there is no mandate from the community both from this Council to implement the OPS as outlined in that paper.

Our assessment was that views were, at best, divided. While many submissions supported the scheme in principle, in most cases they qualified their support, either by calling for the parallel implementation of a mandatory provident fund system to go with the OPS, for immediate improvements to CSSA payments to the elderly, to a CPF in addition, and for a wide range of amendments to some of the basic principles of the scheme. To follow that these qualifications and amendments in changes as some Members have alleged to be perhaps only a very minor, would have changed the OPS as original designed beyond recognition. This was not the kind of support we are looking for and certainly not in Hong Kong's best interest!

There were also many submissions which opposed the OPS in principle. They put forward a variety of arguments as to why the scheme was unsuitable and should not proceed. Some claimed that the OPS mixed up the concept of social welfare and retirement protection. Others believed that it shifted the burden of old age protection from the individual to the family to society, and that in the long run it would have an adverse effect on attitudes towards work and savings, and would lead to a breakdown of traditional Chinese values.

Many submissions claim that the OPS was not fair, as the amount of pension that would be received did not relate directly to the level of contribution that had been made. They did not believe in a scheme which proposed a flat rate of benefit, as they thought it would be inadequate for those really in need, and be superfluous for the better off.

Many submissions expressed concern about the assumptions of growth in population and productivity on which the OPS was based. They thought that these assumptions lacked credibility and feared that if more realistic ones were used, then the OPS would risk insolvency or a much higher contribution rate would be required.

- 3 -

Another area of concern was that the OPS would end up facing problems similar to those experienced by old age pension schemes in many western welfare states.

Let me now turn to some of the comments made on the key recommendations in the OPS paper. Nearly 18% of submissions proposed lowering the qualifying age for receipt of the pension from 65 to 60, arguing that 60 was common age for retirement. To do so, of course, would have meant a major increase in the contribution level for the OPS.

Many submissions called for future pension increases to be linked to increases in wages rather than the Composite Consumer Price Index as we had recommended. We accept such a change would also have meant an unacceptable rise in the necessary level of contribution.

Another major area of disagreement was the proposed means of funding the OPS. About 10% of submissions called for tripartite funding, that is to say equal contributions from Government, employers and employees. Again this would have been totally unacceptable.

Let me now turn to some of the specific points raised by Members in the debate this evenings.

Some Members have claimed that Government manipulated the number of submissions of the OPS, that we placed undue reliance on the views expressed by a particular group or groups, or ignored such views altogether. The simple fact is, there was no real support for the scheme in this Council. There was little enthusiasm for the OPS in the news media, indeed there was some hostility among many other news media, and public views were, at best, divided. All these were views which the Government must take fully into account.

Let me stress, yet again, that the evaluation of the submissions was completely fair, and was carried out carefully and conscientiously. Apart from considering the views expressed in each submission, and whether in principle at least the author was for or against the OPS, or did not indicate either way, we took careful note of such points as - ..

4

(a) whether the submission was from an individual or a group;

(b) whether it was an ordinary letter or a pre-printed form;

(c) if in support of the OPS, whether such support was qualified or unqualified, and if the former to what extent; and

(d) if the submissions opposed the OPS, whether it did so in principle or in respect of individual recommendations in the paper.

If a submission came from a group, then we also took into consideration the number of persons or organisations which that group might represent. Clearly it would not have been meaningful to indicate in the summary assessment of the submissions the number of persons we estimated to be represented by each group submission. The fact that we did indicate the number of signatures in respect of signature campaigns, though, does not mean, as some have claimed, that we simply regarded all other group submissions as representing one view each. That is just not true.

I am disappointed, Mr President, that some Members have expressed dissatisfaction with the way we carried out the OPS consultation exercise. They claim that by relying on submissions in response to a consultation paper, we deprived many potential supporters of the OPS of a chance to express their views. I do not agree. Copies of the consultation paper, and a simple question and answer leaflet about the OPS, were distributed widely to many many locations throughout Hong Kong. Details of the OPS were discussed and explained at great length in the print and electronic media, as well as at public meetings, seminars and talk-shows, both formal and informal. My colleagues in Education and Manpower Branch attended some 200 meetings and functions to talk about the scheme! Those who did not want to read the consultation document would have had little difficulty in learning about the scheme through some other means. Similarly, those who did not want to send in a written submission could have expressed their views - as many did - through such means as attending District Board meetings or other public meetings, writing to newspapers, or calling up phone-in programmes. While we have focused on the number of written submissions we received, let me make it clear that we considered all views that came in, from whatever source.

Finally, I am surprised that some Members have at this stage yet even suggested that we should have put the OPS to this Council in any case, regardless of any support. This would have made no sense if the OPS requires legislation and we do not have the support of this Council even in principle. Then what is the purpose of preparing all the work necessary? Without other's support of this Council, or a mandate from the community, it would have been neither logical nor sensible for us to proceed in this manner.

5

Mr President, let me return to what I began. I said in this Council that an OPS would be implemented subject to the endorsement of our proposals by the community. Such endorsement has not been forthcoming. I refute entirely any suggestions that we have manipulated or ignored public opinions on the OPS. It is abundantly clear that there is no mandate to proceed with the OPS as proposed in the paper. It took us s^ven njonths to design the OPS, a further three and a half months for the consultation period, ^nd another three months to assess the results of such consultation. The door to the OPS will not be reopened. We must move on towards an alternative means of providing financial security for our elderly people. Early this evening Members have already passed the motion urging the Government to introduce as expeditiously as possible a mandatory publicly managed occupational retirement system. We will proceed with the consultancy on the MPF immediately. Implementation of the OPS in addition to the MPF would be totally unacceptable and will place intolerable burden on contributors, employers and employees, and must be rejected in the public interest. For, the reasons given above and later on by the Secretary for Health and Welfare, the ex-officio Members will vote against both the Motion and the Amendment. I urge Members to do so.

End/Wednesday, March 8, 1995

LegCo adopts Govt motion on MPF ♦ ♦ ♦ ♦ ♦

The Legislative Council today (Wednesday) passed a Government motion for the establishment of a mandatory, privately managed occupational retirement protection system (MPF) with provision for the preservation and portability of benefits.

The proposed MPF will include the following main features:

it would be mandatory for every employer to establish a retirement scheme for his employees under the age of 65

it would be a joint contribution scheme by employees and employers

* there would be a statutory minimum contribution, of which the employer should pay half

there would be a minimum salary level, below which an employee might elect not to participate in a scheme

there would be a maximum salary level above which statutory contributions would not be required

- 6 -

* there will be a requirement for preservation and portability of benefits until an employee reaches retirement age, except in specified circumstances such as death, total disability or permanent departure from Hong Kong

* there will be enhancement of regulatory controls over the operation of registered occupational retirement schemes, and the prudential supervision of scheme administrators and pooled retirement schemes

a system would be developed to deal with benefit losses due to fraud or misfeasance of scheme administrators

a residual pool scheme would be developed to provide coverage for employers unable to find a scheme provider in the open market

Moving the motion, the Secretary for Education and Manpower, Mr Michael Leung, said a system to compensate for losses brought about by unlawful activity would be developed in collaboration with the insurance and fund management industries.

... • - - ... (

’’Such a system could be in the form of a retrospective levy, of a compensation fund, or some other means,” he added.

He stressed the Government would in no circumstances consider providing what would in effect be a taxpayers' guarantee against investment losses as to do so would serve only to encourage aggressive or unscrupulous fund management.

But the Government will examine how to minimise the risk of investment loss, for instance by prohibiting over concentration of risks, introducing stricter control of trustees, improving supervision of life insurance companies and requiring adequate capital ratios, ring-fenced assets and transparency of operation.

These will be in addition to existing safeguards already provided under the Occupational Retirement Schemes Ordinance which requires all such schemes to be funded properly and their assets to be maintained separately from those of the employer.

The ordinance also requires the assets of a retirement scheme to be used only for the purposes of the scheme while its financial position must be subject to the annual scrutiny of an independent auditor.

Under the ordinance, assets of retirement funds held under trust belong to the trustee and not to the fund manager and, therefore, will be recovered in the event a fund manager goes bankrupt.

- 7 -

On the provision for the low-income group to opt out of the scheme, Mr Leung said it recognised the fact that the contribution might cause them financial hardship.

Refuting criticism that the MPF would not take care of those at the lower end of the economic ladder, he said it would provide a degree of income security upon retirement even to those employees who might not expect to participate in a voluntary occupation retirement scheme in the near future.

"It will also allow them to participate in an investment scheme where their contributions would be pooled together to yield a better return," he added.

Turning to the issue of preservation and portability of benefits, Mr Leung said that when an employee changed jobs, the accrued balance would be transferred from the scheme of the former employer to that of the new employer and the process would be repeated upon every change of job.

The retirement benefit payment would be made by the scheme of the last employer prior to retirement.

Mr Leung said the question of portability would be examined very carefully by a consultant.

On the question of how the MPF will relate to Long Service Payments (LSP) and Severance Payments (SP), he noted that off-setting provision already existed under the present voluntary system of occupational retirement schemes.

This is because SP and LSP are not designed as supplementary retirement schemes but are intended Io be alternatives to these retirement schemes.

"We do not intend to change it under the MPF. although we will need to consider very carefully the effect of the MPF on both schemes." Mr Leung said.

The Secretary also categorically ruled out the possibility of a Central Provident Fund, saying it was not an option for I long Kong.

"A CPF cannot work without Government funding, and this most definitely will not be forthcoming." he stressed.

Mr I eung also recalled the Government's attempts in the past three years to provide income security for the elderly.

8

In October 1992, the Government released the consultation paper "A Community-wide Retirement Protection System" which proposed a mandatory, contributory retirement protection system for all full-time employees under the age of 65.

The proposed system found little public support in the absence of a guarantee mechanism to deal with benefit losses and because it would not help those outside the workforce.

Taking heed of these points, the Government in July last year published a second consultation paper entitled "An Old Age Pension Scheme for Hong Kong."

The scheme would have given all eligible elderly persons a monthly pension of $2,300, and would have been funded by a modest contribution from employers and employees and an affordable level of financial input from the Government.

At the end of a three-month consultation period, there was no clear public consensus for the scheme to proceed.

"We had to decide where to go next," Mr Leung said, noting that there were suggestions for the Government to maintain the status quo and to continue to encourage the establishment of occupational retirement schemes on a voluntary basis.

But he said the Government did not think it should follow this road as there would still be many employees, particularly in smaller businesses, who would be without retirement protection for the foreseeable future.

"Having analysed the submissions on the Old Age Pension Scheme and following nearly 30 meetings with Legislative Councillors, trade union leaders and representatives of the business community, the Government proposed the MPF which has won majority support from the Legislative Council today," Mr Leung said.

End/Wednesday, March 8, 1995

- 9 -

Shelving of Old Age Pension Scheme - SHW * * * ♦ ♦

Following is the speech by Secretary for Health and Welfare. Mrs Katherine Fok, ip the motion debate on shelving of the Old Age Pension Scheme in the Legislative Council:

Mr President,

Both the Motion moved by Dr Yeung Sum and the amendment put by Dr K C Lam urge the Administration to increase Comprehensive Social Security Assistance (CSSA) payments for the elderly to $2,500 per month with immediate effect.

As I said in the debate on the Government's Motion earlier this afternoon, the Administration shares fully with Members the view that we should do all we can to ensure that elderly persons in need are given every assistance to live in dignity and comfort. But we also have a responsibility, shared by Members of this Council, to provide that assistance in a way which is sustainable and within our means. We cannot allow the growth in our spending to outstrip the growth in our economy as a whole.

The challenge we face is to address the consensus on increasing support for elderly people in need, while at the same time remaining consistent with our sensible budgetary guidelines.

This Council knows how the budgetary process works. For this reason, I am surprised to hear a call for substantial increases in recurrent spending to be implemented with immediate effect. Those who understand the budgetary process and support our budgetary guidelines will know that such a proposal cannot be accepted. It is not realistic to assume that we can immediately find the additional annual recurrent expenditure of approximately $780 million needed to fund the proposed increase in CSSA standard rates for the elderly. 1 hope those of you inclined to support this Motion, or indeed the amendment proposed to it. will bear in mind that your responsibilities to the public extend also to ensuring that Government spending is handled in a way conducive to the sound management of our public finances and the economy.

10

That is not to say we are doing nothing for the CSSA - to the contrary, we are doing and have done a great deal. What we have done is to increase CSSA payments to the single elderly by 26% over and above inflation in the 3 years prior to April this year. What we are doing and will continue to do is to conduct a major review of the entire CSSA system. Dr Lam will wish to note that this will include a review of the means test criteria which is an issue specifically raised in his amendment,to the Motion. We are working on the Review as fast as we can, but important data from the Household Expenditure Survey will start to become available only from September this year and it would not be realistic to expect firm proposals to start to emerge much before the end of this year. This cannot be a piecemeal exercise; and figures must not be snatched out of the air.

A comprehensive Review is the only sensible way to proceed. And as I said earlier this afternoon - this is not a delaying tactic; far from it. We are sincere in wanting to implement the Review's recommendations as swiftly as possible. This creates some difficulties since the Review will reach its conclusions very late in the preparations for the 1996/97 budget. Nevertheless, the Financial Secretary has agreed that some funds will be reserved in advance of the Review outcome so that we can start to implement its recommendations in 1996/97.

It is not clear to me from the way that CSSA figures are currently confidently espoused by their proponents that there is any deep understanding of how the CSSA system and our other support for elderly persons actually work. Let me explain.

With effect from next month, when all CSSA standard rates will be increased by 8.5%, we expect the average monthly payment to a single elderly person to be about $2,700. That is $200 higher than the $2,500 proposed in the Motion and in the amendment to it. How can this be? This is because 97% of elderly CSSA clients receive not only the "standard rate" but are also eligible for a wide range of special grants and an annual supplement if they have been on CSSA for 12 months or more. For the elderly, the most relevant special grants relate to rent, telephone charges, travelling expenses, medical appliances and special diet. With effect from April, a single elderly might typically receive an annual supplement of $1,340 and, monthly, a standard rate grant of $1,810, special grants for rent (of up to $1,118), telephone charges, travelling expenses etc, say another $100. All these add up to an average monthly payment of $2,700.

When calculating the full level of financial support given to an elderly person in need, we must add to this the cost to the taxpayer of providing all medical services to CSSA recipients free of charge and for the provision of various welfare services, at a cost of over $1 billion next year, ranging from counselling to day care and social activities - all at no charge or at the lowest of nominal charges only. Depending on need, they can also benefit from special compassionate housing in public housing estates.

11

Of course, taken in isolation, the CSSA standard rate payment to a single elderly person which will be $1,810 per month may not look very much. But only 3% of elderly CSSA recipients receive this standard rate. And even if this were all they received, it is supplemented by a range of other hidden subsidies which make up the full safety net of welfare and other support.

We must remember too, that if the standard rate payment is all they receive, it means that they probably, for some reason, do not need e.g. rent or travelling expense support. Perhaps their children and family are providing some additional support which makes it unnecessary for other benefits to be claimed.

We must not forget that many in Hong Kong have sensibly saved to look after themselves. Our spectacular economic growth has enabled many of them and their children to acquire the resources to make their lives comfortable in old age. Yes, there are those in need but let us remember that many are managing well on their own savings and with the support of their families.

Mr President, we are reviewing CSSA rates, and whereas we do not yet have a new figure to propose for the elderly rates. Members may well be right that an increase is justified. Indeed, the Review may indicate that rates for other categories of recipients - the young, the disabled or single parents for example - should also be increased. As I said before, the Review is not a delaying tactic. It will provide us with the necessary information upon which sensible decisions on the adequacy of existing CSSA rates, including those for the elderly, can be made. If an increase in the rates for the elderly can be justified, we will do our best to secure the necessary funds to start to implement the changes recommended in 1996/97. even though any decision to raise such rates could only be made late in the preparation for that year's Budget.

Since we cannot pre-empt the outcome of the review, ex-officio Members would be inclined to abstain in a vote relating to a recommended $2,500 rate for the elderly. But they cannot abstain in a Motion which advocates the implementation of any increase with immediate effect. For the reasons I have already outlined, we cannot agree with such a recommendation. Accordingly, the ex-officio Members of this Council will oppose both the Motion and the amendment to it.

End/Wednesday. March 8. 1995

12

SEM’s closing speech on retirement protection ♦ * * * ♦

Following is the closing speech by the Secretary for Education and Manpower, Mr Michael Leung, in the motion debate on retirement protection in the Legislative Council today (Wednesday):

Mr President,

With your indulgence, I would like really to respond in full to the proposed amendment and the speeches made by Members this afternoon and to put my response at this point in time with your indulgence because it is important that the motion I propose must proceed unamended if the intention is to set up the MPF within the time frame which I describe in my speech. With the amendments as proposed will be unacceptable to Government and the reasons mentioned by myself and the Secretary for Health and Welfare, so I would try to answer all the points raised this afternoon by Members on why in fact it is important that the Government motion should proceed unamended and to answer the points raised by various Members arising from this debate.

First of all. I would like to correct some misconceptions raised by some Members in distorting facts and trying to misquote a numbers of points on previous occasions. First of all, on the debate in November last year, I think as a matter of record in the hansards as Members admit for themselves that of the Members who spoke on the motion, only one Member, Mr McGregor, spoke in unqualified support to the OPS as presented by the Government. I stress these words as presented by the Government. All those who spoke, somehow, for the OPS in some way have all qualifications, qualifications as so fundamental as to affect the concept, the basic concept of the OPS as presented by Government. For examples, many Members raised the question of Government contribution, tripartite funding, this changes fundamentally the nature of the OPS as we proposed, therefore it is not a support of the OPS as we sought.

Secondly, those Members who supported the OPS, as they said, also wanted the CPF. in addition to the OPS, again how can this be a support of the OPS as we presented this to this Council?

And thirdly, many who spoke, so call in support of the OPS also wanted to have the old age allowance increase as well, so Mr President, how can we say those that who spoke allegedly in support of the OPS are really in support? None of them, none of them except Mr McGregor, gave us the wholehearted support on the OPS without qualifications. This is a matter of record and Members can read the hansard for themselves on 9th November 1994.

13

Secondly, Mr President, on the point raised by one Member allegedly referring to my "previous colleagues" in this Council last year on the demerits, so called demerits, of the RPS. Can I remind that Member that the RPS was based on the '92 paper. All he said against those points in the RPS were the '92 paper on the particular system. It was not, it was not as stressed, relevant to the MPF which I now outline this afternoon, they are different things. Let me explain why they are different. Members, of course, mentioned also the need to get the wire report in 1993 on the RPS system. Again they are different systems and I would explain why they are different.

I am very surprised in fact that Mr Michael Ho is trying to distort things and trying to pull wool over our eyes to say that we are now trying to hide the RPS reports from Members because it is relevant to this debate. And my answer it is not relevant. Let me explain why. The RPS in 1992 called for all employees in full time employment under the age of 65 to participate in retirement protection schemes unless specifically exempted. There will be no minimum wage level for making contributions, even those on very low salaries still needed to contribute. That was the 1992 system. It allowed the concept of preservation of benefits without portability. In that when an employee change job, it would have been able to leave his accrued retirement benefits frozen in the previous employer's retirement scheme. There was no provision to deal with those employers who might not be able to find a retirement scheme in the open market for that employee. There was no provision for any scheme to deal with benefit losses caused by fraud or theft. Let me ask you, is it the same as the MPF which 1 have just outlined? All these features are different from this present scheme which I outlined. How can they be relevant to present scheme? We are not asking Members to endorse an RPS or even amended version of it, we have since moved on. As Members would be aware from information which we gave them earlier on before this debate. And today this afternoon the MPF would differ from the RPS in many respects.

First of all, it would be a residual pool scheme to deal with those employers who are not able to find coverage elsewhere in the open market. Secondly, there will be a minimum salary level for contributing purposes to recognise that those on low incomes may find it difficult to make a contribution. Thirdly, there would be a scheme provision for a scheme to deal with benefit losses due to fraud or theft. And fourthly, we would not be allowing preservation without portability. We want both, preservation and portability in the MPS system, is not the same as the RPS.

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As we recognise the concern expressed over this issue, in consumption with the previous consultation on the RPS in 1992. In short, the two systems are totally different, it is totally irrelevant to quote with that one as the arguments against the MPS. Let me go on one more point. The report on the RPS used financial calculations based on the interest rates and market conditions at that time, that is at least two years ago. It also talked about complying an exempt scheme. These concepts are not relevant, not applicable to our discussions on the MPF or the principle of the MPF this afternoon. It would therefore be totally inappropriate and totally misleading for some Members of this Council to deliberately distort the pictures, to mislead the public and this Council into believing that we are trying to have the two schemes mixed up together, they are not, they are different schemes. The MPF as presented is a new scheme with new features, improvements of the old features and can adjust the need of the people at this point in time. I am sure Members would understand this, these are very different. Therefore the quotation of my colleague, Mr Lam, was totally out of context, and totally misleading.

Going back to the main points in the arguments, I am sure that those Members who have said in support of the OPS with qualifications must now be regretting they have done the wrong thing. I am very sorry for them. They cannot retract because it is on record. They said in support with qualifications plus CPF plus old age allowances plus everything. I am sorry it's too late to change their minds now. It's on record and the public know that they have not supported that the OPS as presented. They can't change their minds now or correct the record. I am so sorry for them. But that is the fact, Mr President, it's on record and hansards. You can't change it now, you can't deceive the public.

Coming back to the MPF as we presented this afternoon, I like to respond a number of points on those Members who spoke in support which I am fully appreciative. On the number of points of details, first, the question of security for retirement benefits. Let me stress once again that we have already got in place a system of legislative controls, regulations and prudential supervision. The Occupational Retirement Schemes Ordinance (ORSO) requires scheme assets to be maintained separately from those of the employer, and to be held by independent trustees or authorised insurers. It also imposes restrictions on the investment of scheme assets. Loans to the employer and investment in certain company shares are not allowed. No more than 10% of the scheme assets may be invested in securities issued by the employer.

15

Scheme administrators, i.e. trustees and authorised insurers, are required to keep proper accounting records of the scheme assets, and to submit audited annual accounts and returns in respect of the scheme to the Registrar of the Occupational Retirement Schemes. Under the present Ordinance, the Registrar is obliged to report on non-compliance with contributions and investment restrictions and may take interventionary action under the present system now. It can do so. Furthermore, Members of a scheme are entitled to have access to information about the assets of their scheme.

Authorised insurers and registered trust companies which manage retirement schemes are subject to supervision by the authorities. Insurers are required to observe the investment rules and regulations promulgated by the Insurance Authority. The trust companies must be registered with the Registrar of Companies under the Trustees Ordinance and meet.the registration requirements of that Ordinance. Proposals are in place to strengthen regulations of investments of trust assets.

These measures are part of the Government's role in ensuring prudential supervision and regulation of existing voluntary schemes. As I have said, we recognise fully that in a situation where contributions are mandatory, we must strengthen the regulation of fund managers and our system of prudential supervision. And this we shall do. It will be an important part of our consultant's brief. Furthermore, within the MPF, and with the collaboration of the insurance and fund management industries, we will develop a system to compensate for losses brought about by unlawful activity. But I want to stress, once again, what we will not do is to provide a guarantee against investment risk. To do so would be counter-productive, as it would encourage the sort of aggressive and unscrupulous fund management we must avoid.

I would like to. perhaps, address some Members’ concern about Government's role in this, and Government's contributions. I am very pleased Members did remind us of our responsibility in this respect, and 1 am pleased to say that Government is prepared to consider the provision of a one-off capital contribution towards any fund or scheme that is set up to deal with benefit losses due to fraud or theft.

Secondly, on the question of preservation and portability. The purpose of any retirement protection system must be to ensure that an employee has accrued enough benefits by the time he leaves the workforce to allow him to enjoy a financially secure old age. For this to happen, we cannot let the employee simply take the benefits away with him each time he changes a job. Certainly we will need to ensure that preserved accrued benefits are transferred from one employer's scheme to the next upon change of job. The best way of doing this is one area where we will have need further advice from the consultants. However, this must not detract us from the need to include these necessary concepts as an integral part of the MPF.

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I should stress that preservation by itself is not the answer. This was pointed out to us very clearly in submissions on the October 1992 RPS, which warned of "loss" benefits, and a multiplicity of small accounts leading to unnecessary administrative work for employers. Preservation and portability must therefore go together.

I welcome Members' general support lor the residual pool scheme which wc have proposed in this MPF system. As I said in my main speech, we expect the majority of employers to be able to find a scheme administrator in the private sector by themselves. Those who for one reason or another cannot do so. will be able to participate in the residual pool scheme. Again, this is an area where we need to work very closely with the insurance and the fund management industries.

I should like also to respond to a point made by some Members on the relationship between the Long Service Payment (LSP), Severance Payment (SP) and the MPF. Members will be aware that these were designed at a time when there was very little retirement protection. We were concerned about the difficulties that workers, especially elderly ones, might face in finding another job. These measures were introduced to help them over such difficulties. At the same time, we tried to encourage the provision of voluntary occupational retirement schemes. There is already provision in the Employment Ordinance to allow for the setting off of an employer's benefit payments under a retirement scheme by the amount payable for Severance Payment or Long Service Payment. Mr President, it is not our intention to change this arrangement, but we will seek our consultants' advice to examine this relationship between the two systems and the proposed MPF.

1 think Members are aware that the MPF will have an impact on existing schemes both within the civil service and other statutory schemes. Again this is an area we will have to need to find our consultants to look at the technical points in more detail and come back quickly with answers to these impact on these problems.

I take Members' points that the MPF will be, as they said, meaningless without for those on a low income. But I do not agree with them. We are providing those employees on a low salary with an opportunity to participate in an investment where their contributions will be pooled together to provide a meaningful return. We must not look at investments over the short term, but over a longer time-frame, and we may expect contributors to benefit accordingly.

17

It is also possible that the very significant funds that will be accumulated under the MPF schemes will be accumulated and if these were to move on in a concerted manner across the exchanges, this would have in fact implications for the monetary management system. Again we will be looking at these measures with great care and to ensure that the advice system to look after this impact.

I note that some Members have expressed concern on the rate of return. This, of course, is a key consideration. The rate of return on privately managed retirement funds has been high in Hong Kong over the long term, with even those funds regarded as average performers having a return of 7 to 8% after inflation. This is considerably higher, better than the likely rate for the CPF. I should stress that a high rate of return will provide contributors, even those on a low income, with more retirement protection in the long term.

Let me also point out that investment returns on retirement funds, like other long term investments, fluctuate from year to year. The majority of retirement schemes in Hong Kong are long term investors. The success of a scheme must be measured by its average investment performance over a longer time horizon. It is misleading to quote one year's result as a measurement of investments in the long term. I note from a recently issued survey of Hong Kong Retirement Schemes in 1994, that while 1994 was a disappointing year, as significant falls in the Asian stock markets affected returns of those schemes with a heavy concentration of assets in those markets, over the longer term returns remain ahead of salary inflation.

Mr Vincent Cheng mentioned a point expressed concent over the effect of retrospective preservation. Scheme participants are, of course, free to terminate an existing scheme anytime they want to, in accordance to the bad terms of the scheme. But most, I'm sure, will realise that it is usually through long-term investments that any pension fund scheme will bring the maximum benefits and they will not easily trade world-run scheme for the immediate freedom from the requirement under the MPF to preserve their accrued benefits. It is simply not in their interest to do so. In any event, a sufficiently long grace period would be provided for employers and employees to comply with the MPF requirements all to wind up their schemes. There is no reason therefore to assume that it will take collective action to wind up all at the same time.

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Mr President, today we have reached a mile-stone in our long road towards establishing a retirement system for Hong Kong. The result of the vote on the motion as I put before this Council will determine whether we move down the road towards the goal of a mandatory privately managed retirement system, or to stop the journey right here. If we get clear support from this Council on our proposal, as embodied in my original motion as not amended, we will proceed with appointing a consultant to look at the details and come back to this Council as soon as possible on details. We will also start drafting legislation and come back to this Council with a primary legislation. The time-frame we try to get an initial report from the consultants by the end of April and to come to this Council with a primary law before the end of this session if Council endorses my motion this afternoon. This is our timetable, we cannot lose any more time. Every day counts, every week counts in these preparations, is a tall order for the Government is prepared to take up this challenge and respond to Members' concern and the community's concern on this matter. And we hope Members can approve the motion unamended and make sure we have these mandate from Council to proceed as I recommended.

Thank you.

End/Wcdnesday. March 8. 1995

SHW speaks on retirement protection *****

Following is the speech by the Secretary' for Health and Welfare. Mrs Katherine Fok, on the amendment moved by the Hon Jimmy McGregor, to the motion moved by the Secretary for Education and Manpower. Mr Michael Leung, on "Retirement Protection" in the Legislative Council today (Wednesday):

Mr President.

The decision of my colleague, the Secretary for Education and Manpower to confine the scope of his motion to retirement protection alone was a carefully considered one. The Administration wishes this Council to have the opportunity to express its view on this important issue without being distracted into a debate about the appropriate level of social security payments and allowances for the elderly. Indeed, the Council will have the opportunity to express its views on the latter subject when it discusses the motion to be moved by Dr Yeung Sum later today.

V

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Apart from this, we also find the substance of the amendment unacceptable, mainly because of the significant financial implications mv< ed. especially in the case of payments under the Old Age Allowance Scheme \s at December 1994, approximately 420,000 persons were receiving this allowance The 133,000 between the ages of 65 and 69 receiving the normal allowance in 1994 95 were paid $485 per month subject only to a declaration that their income and assets were below a certain level. Approximately 287.000 aged 70 years and over were paid the higher allowance of $550 per month and were not even subject to an income declaration. We estimate that 73% of eligible persons in Hong Kong at 6^ vears of ag< or above claimed the allowance in 1994/95

The allowance is not granted in recognition of any assessed financial need; that is why it has remained relative! • modest. But because of the large numbers receiving it, it is costly to fund. The full year cost for 1994/95. even at these levels, will be nearly $2.5 billion. This is more than the $2.2 billion which we shall have spent in that year on CSSA payments for those over 60 vears of age who are in need and thus receiving CSSA.

We must be careful not to confuse welfare payments and retirement protection. 1 believe there is a widely held view that welfare support for elderly persons in need should be increased. But I do not believe that there is wide support for the taxpayer to contribute more to the elderly regardless of the financial or other needs of the elderly persons concerned.

To provide retirement protection for all over the age »t 65 by raising Old Age Allowances e.g. to the $2,300 per month level would place u intolerable burden on the taxpayer. Assuming that the take-up rate of the allowance, if significantly increased as proposed, would rise to 85%. it would require nearly $10 billion of additional recurrent expenditure in 995/96 alone I ct me just repeat, over $10 billion of recurrent expenditure \nd we estimate that this would use to $15 6 billion of recurrent expenditure in <999/2000. The additional expenditure involved over this five year period would be as much as $5^ billion This enormous burden would not result in funds being channelled to the needy but rather, indiscriminately, to all at or above 65 years of age whether rich or poor We do not believe that the community would support such a move Those who will benefit from retirement protection should, together with (heir employers oe obliged to contribute if they can afford to do so. This reduces or eliminates the burden on the general taxpayer. This is a vitally important consideration when we have an ageing population in which the number of elderly beneficiaries per salaries taxpayer is expected to continue to grow

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As for any increase in the CSSA payments themselves, Members know already that we are conducting a Review of the CSSA system and payment rates at the moment. This is too important an exercise to allow figures simply to be snatched out of the air. The new rates for the single elderly to come into effect in April will mark a 26% increase in real terms, over and above inflation, compared with the level being paid only 3 years previously. From next month, the average monthly payment to a single elderly person would be about $2,700. It cannot be said that we have been neglecting these payments.

Before we consider increasing them any further, we must take stock of the whole system and ensure needs are being met appropriately and the relative needs of all categories including, for example, young children, the disabled, the single parent and the elderly are all being properly addressed. We must await the outcome of this Review in early 1996 before proposing any changes. I can assure Members that this is not simply a delaying tactic on our part. Although the results of the Review will become available late in the preparations for the 1996/97 budget, we shall do all we can to ensure funding is made available to start to implement the changes recommended in that financial year. The Financial Secretary has agreed that some funds should be reserved for this purpose in advance of the conclusion of the Review.

Mr President, the Administration recognises the spirit behind Mr McGregor's Amendment. We too sincerely wish to do all we can to help the elderly. But the Administration must have regard to what the taxpayer can afford and the implications of any proposal on the financial and economic well being of Hong Kong. We believe that retirement protection and welfare support for the needy are essentially different issues which are better dealt with separately. We therefore oppose this amendment. In doing so. we are also conscious of the important objective of giving Members an opportunity to vote on a clear motion on the mandatory privately managed provident fund system which we consider merits Members' support as a means of providing retirement protection for our elderly citizens.

End/Wednesday, March 8, 1995

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SEM on retirement protection ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, in the motion debate on "Retirement Protection" in the Legislative Council today (Wednesday):

Mr President,

1 move the motion standing in my name in the order paper.

Over the past 30 years, much has been said, both inside and outside this Council, about the best way to provide financial security for our elderly people. I do not think that there is anyone who would deny that the elderly in our community, who have contributed, and continue to contribute, so much to our economic well-being and prosperity, deserve to be able to live in dignity and financial security during their retirement years. Yet the best way of reaching that goal always appears to have eluded us.

There are currently some 560,000 people over the age of 65. This number will rise to about 1.000,000 by the year 2016. Although Hong Kong has a high average savings rate and most of our citizens have been able to support themselves in retirement until now. we cannot assume that this will always be so. Nor should we simply continue to rely upon traditional patterns of family support. Prudence dictates that we take precautionary measures. We cannot afford further delay. The time for action is now.

It is an inescapable fact, though, that Government alone cannot solve the financial needs of our elderly population unless we are to put an intolerable burden on our taxpayers. We need to involve the working population and employers as well. Let me go back in time to examine what we have tried to achieve in the area of providing income security for the elderly over the last three years.

I he RPS

Most Members will recall that in October 1992 we released a consultation paper entitled "A Community-wide Retirement Protection System". This proposed the introduction of a mandatory, contributory retirement protection system for all employees under the age of 65 in full time employment, rhe proposed system found little support within the community. The main areas of concern included the absence of a guarantee mechanism within the system to deal with benefit losses arising from fraud, theft or poor investment management, and the fact that the system did not help those outside the workforce.

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The OPS

We took heed of these points, in particular the apparent concern about the absence ofcoverage for those elderly people outside the workforce or who had already retired. In December 1993, as Members will recall, I announced in this Council that we would implement an Old Age Pension Scheme (OPS) subject, among other things, to endorsement by the community of our proposals. In July last year we released our second consultation document, entitled "An Old Age Pension Scheme for Hong Kong". The OPS would have given all eligible elderly persons a monthly pension of $2,300, and would have been funded by a modest contribution from employers and employees, and an affordable level of financial input from Government.

When the OPS consultation period ended on 31 October last year, we had received a total of 6,665 written submissions. Although this was an encouraging response in numerical terms, as we assessed the views expressed in those submissions, it became clear to us that public opinion on the OPS was, at best, divided. Nor was there any support for the OPS in this Council. Members recall that the Motion Debate on the OPS on 9 November 1994, to debate the motion "That this Council is of the opinion that the Government has to assume greater financial responsibility for the Old Age Pension Scheme and, at the same time, should attach due importance to the views expressed by the public during the consultation period in order to refine the Scheme and take positive steps to improve the existing welfare system for the elderly", only one Member of this Council spoke firmly in support of the OPS. Let me remind Members that the vote in favour of an amended motion which called upon Government to seriously consider the views expressed by the public on various retirement schemes, including the OPS, was passed by a majority of 28 votes to 3.

We have to face reality. We had sought public endorsement of the OPS, but public views were divided. There was little support from the OPS in the news media, nor indeed in this Council. There was clearly no consensus for the scheme in Hong Kong, and we shall not return to it. We have to decide where to go next.

It would have been quite inappropriate to try, as some have suggested, and put the OPS to this Council in any case. To proceed along the OPS road meant that we needed the clear support of the community, this Council and the Chinese side. We cannot ignore the fact that we need both legislation and the agreement of the Chinese Government for any retirement scheme that goes beyond 1997.

23

There have been suggestions that in the light of the rejection of the October 1992 consultation paper on retirement protection, and the divided views on the OPS, then Government should maintain the status quo, and continue to encourage the establishment of occupational retirement schemes on a voluntary basis. At present, about one-third of our workforce of 2.8 million is covered by some form of retirement scheme. If we simply maintain the present system, it has to be realised that while the number of employees covered by such voluntary schemes will continue to grow gradually, there will still be many employees, particularly in smaller businesses, who will be without retirement protection for the foreseeable future. Indeed it would be unrealistic ever to expect the entire workforce to be covered under a voluntary system.

The MPE

Submissions on the OPS indicated that there was now likely to be more public acceptance of a mandatory, privately managed provident fund system, particularly if it could be set up by 1997. Over the last few weeks, my colleagues have been seeking the views of community leaders on what is now the only remaining alternative for retirement protection. After nearly 30 meetings with Members of this Council, both individually and in groups, with trade union leaders and with representatives of the business community, we have gained the impression that the introduction of what we call a mandatory, privately-managed provident fund system (MPF) would be regarded as a practicable way forward to help our hard working labour force to look after themselves better in their retirement years.

Let me now describe the key features of the MPF as we see it at this point in time. The proposed MPF should include the following main features -

1) it would be mandatory for every employer to establish a retirement scheme for his employees under the age of 65;

2) it would be a joint contribution scheme by both employees and employers;

3) there would be a statutory minimum contribution, of which the employer should pay half;

4) there would be a minimum salary’ level, below which an employee might elect not to participate in a scheme;

5) there would be a maximum salary' level above which statutory contributions would not be required;

6) there will be a requirement for preservation and portability of benefits until an employee reaches retirement age. except in specified circumstances such as death, total disability or permanent departure from Hong Kong;

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7) there will be enhancement of regulatory controls over the operation of registered occupational retirement schemes, and the prudential supervision of scheme administrators and pooled retirement schemes;

8) a system would be developed to deal with benefit losses due to fraud or misfeasance of scheme administrators; and

9) a residual pool scheme would be developed to provide coverage for those employers unable to find a scheme provider in the open market.

Scheme to deal with benefit losses

Let me now elaborate on some of the features I have just mentioned. First of all, the system that would be developed within the MPF to deal with benefit losses. Some groups and individuals have expressed concern about what may happen if one of the constituent schemes of the MPF goes bankrupt. I should emphasise first of all that the Occupational Retirement Schemes Ordinance (ORSO) which governs the operation of voluntary retirement schemes already requires all such schemes to be funded properly; for the assets of a retirement scheme to be maintained separately from those of the employer, and to be used only for the purposes of the scheme; for the financial position of a retirement scheme to be subject to the annual scrutiny of an independent auditor; and for employees to have the right to seek information about their schemes. Moreover, retirement funds held under trust are afforded protection in that all assets belong to the trustee and not to the fund manager and therefore would be recovered in the event of a fund manager going bankrupt.

Nevertheless, we do recognise the fact that in a situation where contributions are mandator} , then we should strengthen the regulation of fund managers and our system of prudential supervision. This we will do. Our role is to minimise risk due to fraud and theft, and ensure prudential supervision and regulation. Within the MPF. a system will be developed, in collaboration with the insurance and fund management industries, to compensate for losses brought about by unlawful activity. Such a system could take the form of a retrospective levy, of a compensation fund, or some other means. I look forward to the support and close co-operation of the industries in this respect.

While on the subject of’ losses and guarantees, 1 must stress at this point that Government will not consider under any circumstances providing what would be in effect a taxpayers’ guarantee against investment losses. To ask taxpayers to be liable for bad investments decisions made either by contributors in their selection of schemes or by fund managers or investment consultants in the private sector would be fool-hardy. It would serve only to encourage aggressive or unscrupulous fund management, which is what we are seeking to avoid. However, we will be examining how best to minimise the risk of investment loss, for instance by prohibiting over concentration of risks, introducing stricter control of trustees, improving supervision of life insurance companies and requiring adequate capital ratios, ring-fenced assets and transparency of operation.

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Minimum salary level

Secondly, the minimum salary level. This recognises that for some of those earning below a minimum level, which could be set at say about $4000 a month, the contribution might cause financial hardship. We shall allow such employees to elect whether or not they wish to contribute to their employer's scheme. If they elect to contribute, though, then the employer must also pay his share of the contribution. This is an important point. Lowly paid employees will have a choice in the way they handle their own financial affairs.

The MPF will be open to all employees, so it is not correct to say, as some critics have said, that it will not take care of those at the lower end of the economic ladder. The MPF will provide a degree of income security upon retirement even to those employees who might not expect to participate in a voluntary occupational retirement scheme in the near future. For every dollar an employee puts into the MPF, there will be a corresponding dollar from his employer. It will also allow them to participate in an investment scheme where their contributions would be pooled together to yield a better return - an opportunity which otherwise might not have been open to them. When we move on to the consultancy, we shall also consider the needs of the self-employed, and whether they should take part in the MPF.

Residual pool scheing

We expect the majority of employers to be able to find a retirement scheme provider in the private sector, but we realise there are going to be some who for one reason or another are unable to do so. This may be particularly relevant to smaller businesses, or those with employees on low incomes. We arc also conscious in this respect of the points made by the insurance and fund management industries that the administrative cost of managing small contributions would be disproportionately large and might eat into the capital. To ensure that all employers are able to comply with the law, there will be a residual pool scheme which will provide coverage for their employees. Such a scheme would still be run on commercial principles. Let me remind Members that the residual pool scheme is not the same as a central provident fund, about which I shall be speaking later on. It is simply an alternative means of providing retirement protection essentially for those who are unable to find it in the open market. It is one of a number of points which we shall discuss in greater detail with our consultants. In addition, as Members will know, many employers offer a choice of retirement schemes to provide for the varying needs of their employees. We would want this option of choice to remain continued.

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Benefit level

Let me deal now with some particular points which appear to he giving rise to concern and confusion. Some have called for a minimum benefit level to be provided under the MPF, or for a pension to be provided for those who have not saved enough under the system. While we appreciate that there will be those who may not have been able to accrue what they perceive to be an adequate amount on which to retire, the MPF, like other similar systems, would operate on the strict principle of beneficiaries receiving what the retirement protection scheme has produced in the way of investment return. Those in genuine financial need would still be able to apply for existing welfare benefits for the elderly, subject to eligibility.

Relationship with LSP and SP

I shall now turn to the question of how the MPF will relate to the provision for Long Service Payments (LSP) and Severance Payments (SP) under the Employment Ordinance. At present, the employer's contributions to a retirement scheme may be set-off against any amount he has paid out for SP or LSP. Employers do not pay twice. SP and LSP are not designed as supplementary retirement schemes - they are intended to be alternatives to these retirement schemes. That is why the off-setting provision exists under the present voluntary system of occupational retirement schemes. We do not intend to change it under the MPF, although we will need to consider very carefully the effect of the MPF on both schemes.

Preservation and portability

The basic aim of a retirement protection system must be to ensure that an employee accrues enough benefits by the end of his working life to allow him to enjoy an element of financial security in his retirement years. For this to happen, the benefits must be kept intact until the end of his working life, not paid out upon change of job. This is the principle of benefit preservation. Upon change of job, the accumulated balance would be transferred from the scheme of the former employer to that of the new employer. This process would be repeated each time the employee changed job. The retirement benefit payment would be made by the scheme of the last employer prior to retirement. The question of portability, and how to make it work as smoothly as possible, to the benefit of scheme contributors, is one that will be examined very carefully by our consultants.

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CPF

Finally, let me turn to the perennial call for us to establish a Central Provident Fund (CPF). Our view on this remains unchanged. It is not an option for Hong Kong. It offers no freedom of choice, tends to produce low returns on investment, and would result in an over-concentration of funds under one authority. We hold the same view in respect of a CPF on its own, and a CPF put together in an uneasy partnership with any other form of retirement protection.

Those Members who arc proposing a Hong Kong Central Provident Fund Bill must know that we will not support it. A CPF cannot work without Government funding, and this most definitely will not be forthcoming.

Conclusion

Mr President, I believe that the mandatory, privately managed provident fund system is not only the most acceptable way of providing retirement protection for our elderly people - it is also the only way left. It is abundantly clear that there is no mandate to proceed with the OPS. It took us seven months to design the OPS, a further three and a half months for the consultation period, yet a further three months to assess the results of the exercise. The door to the OPS will not be reopened. We cannot go on devising new schemes. Without clear support for the MPF, we will not proceed. I call upon Members of this Council today to give us the clear support we need to move on to the next stage of the MPF consultation process, which is to appoint a consultant to advise us on the details of the system. Thereafter we will discuss the MPF in the Sino-British Joint Liaison Group. We hope to put together primary legislation on the MPF to this Council before the end of this current session, and our eventual aim is to have the MPF in place as quickly as possible.

Mr President, I beg to move.

End/Wednesday, March 8, 1995

28

Proposed increase in Old Age Allowances poses intolerable burden on taxpayers ♦ ♦ ♦ ♦ ♦

To provide retirement protection for all over the age of 65 by raising Old Age Allowances to the $2,300 per month level would place an intolerable burden on taxpayers, the Secretary for Health and Welfare, Mrs Katherine Fok, said.

Speaking on the amendment moved by the Hon Jimmy McGregor to the Government's motion on retirement protection at the Legislative Council today (Wednesday), Mrs Fok said 133,000 persons aged between the ages of 65 and 69 receiving the normal allowance in 1994/95 were paid $485 per month and 287,000 aged 70 years and over were paid the higher allowance of $550 per month.

Even at these levels, she said, the full year cost for 1994/95 was nearly $2.5 billion which is more than the $2.2 billion spent on Comprehensive Social Security Assistance (CSSA) payments in the same period for those over 60 years of age.

Mrs Fok said: "Assuming that the take-up rate of the allowance, if significantly increased as proposed, would rise to 85 per cent, it would require nearly $10 billion of additional recurrent expenditure in 1995/96 alone.

"Let me just repeat, over $10 billion of recurrent expenditure. And we estimate that this would rise to $15.6 billion of recurrent expenditure in 1999/2000.

’’The additional expenditure involved over this five-year period would be as much as $55 billion."

This enormous burden would not result in funds being channelled to the needy but rather to all at or above 65 years of age. whether rich or poor.

Mrs Fok did not believe that the community would support such a move.

In her opinion, those who would benefit from retirement protection should, together with their employers, be obliged to contribute if they could afford to do so.

"This reduces or eliminates the burden on the general taxpayer," she said.

"This is vitally important consideration when we have an ageing population in which the number of elderly beneficiaries per salaries taxpayer is expected to continue to grow."

29

As regards CSSA, the Secretary pointed out that as from next month, the average monthly payment to a single elderly person would be about $2,700.

The new rates for the single elderly which will come into effect in April will mark a 26 per cent increase in real terms, over and above inflation, compared with the level being paid three years ago.

"It cannot be said that we have been neglecting these payments,” she stressed.

Mrs Fok said the Government was conducting a Review of the CSSA system and payment rates, the outcome of which would be available in early 1996.

"Although the results of the Review will become available late in the preparations for the 1996/97 budget, we shall do all we can to ensure funding is made available to start to implement the changes recommended in that financial year.

"The Financial Secretary has agreed that some funds should be reserved for this purpose in advance of the conclusion of the Review," said Mrs Fok.

While appreciating the spirit behind Mr McGregor’s amendment, Mrs Fok stressed that the Administration must have regard to what the taxpayer could afford and the implications of any proposal on the financial and economic well being of Hong Kong.

"We believe that retirement protection and welfare support for the needy are essentially different issues which are better dealt with separately.

"We therefore oppose this amendment," Mrs Fok stated.

End/Wednesday, March 8, 1995

30

Rehousing policy for occupants of unauthorised rooftop structures

*****

Following is the speech by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council motion debate on clearance and rehousing of rooftop structure occupants today (Wednesday):

Mr President,

I shall speak on the rehousing policy for occupants of unauthorised rooftop structures affected by the Buildings Department's demolition action. When notified that a Notice of Intention has been issued under the Buildings Ordinance, the Housing Department will immediately conduct a survey of affected occupants and establish their eligibility for rehousing. Offers are made, and sufficient time is allowed before the Buildings Department enforces the Closure Order. Thus our policy is to offer and provide rehousing to those in need prior to demolition.

The fundamental principle in our rehousing policy is that no one will be rendered homeless. Rooftop occupants affected by demolition action are eligible for rehousing in a public rental flat or given priority to purchase a Home Ownership Scheme flat, if they meet the following three criteria :

(a) they can prove that they were living in the rooftop structures on or before 1 June 1982;

(b) the majority of their family members have been living in Hong Kong for

seven years or more; and

(c) they have not owned or entered into any sales and purchase agreement in respect of domestic property in Hong Kong in the past 24 months. I must point out here that ownership of an unauthorised rooftop structure will not affect the eligibility for public rental housing, but the owner must undertake to demolish the illegal structure upon allocation of public housing.

If there is any misunderstanding on this point, those aggrieved are advised to approach the Housing Department again. Those rooftop occupants who do not satisfy criterion (b) on the period of residence in Hong Kong but are otherwise eligible will be rehoused in refurbished flats in older housing estates. Others who do not meet the three criteria are rehoused in Temporary Housing Areas in the New Territories. Subject to the recommendation of the Social Welfare Department, compassionate rehousing in either public rental housing or temporary housing in the urban area will be offered to affected occupants in special circumstances.

31

In rehousing eligible rooftop occupants affected by demolition action, the Housing Department will offer public rental flats in the same district as far as possible. However, I must point out that local rehousing is not always possible if there are inadequate housing resources in that district.

Rooftop occupants who have already registered on the General Waiting List of the Housing Department will be rehoused in public rental housing if they meet the normal household income limit criterion and if their turn for public housing allocation is due within six months : in this case they will be rehoused immediately in the district in which their application is due.

The rehousing policy and arrangements which I have just outlined apply to both rooftop occupants and squatters on government land, despite the conduct of an occupancy survey of squatters in 1985. In every demolition exercise, the Housing Department works closely with the Buildings Department to ensure that ample notice is given and rehousing offers are made prior to demolition. I wish to stress again that no one will be rendered homeless. Problems arise only when occupants refuse to accept the type of rehousing for which they are eligible. Clearly, it is in their own interest to co-operate with the Housing Department. To do otherwise will only , delay the rehousing process, and in any case will not change their eligibility status.

• • •'. S' ■ j 1 ■

Some Members of this Council seem to have implied that we should relax the rehousing policy for rooftop occupants. This is not advisable. We do not consider it reasonable to provide immediate rehousing in public rental flats for rooftop occupants who do not satisfy the eligibility criteria. We have been told that to do so will lead to accusations of "queue jumping", which is unfair to those eligible households already on the General Waiting List of the Housing Department. Indeed, any such preferential treatment may also encourage more illegal structures to be built.

I appeal again to all eligible rooftop occupants who wish to obtain public housing to come forward now to register with the Housing Department and place themselves on the General Waiting List. This is the proper way to ensure that they will obtain public housing.

Mr President, the rehousing policy for rooftop occupants is reasonable and fair. It is consistent with that for squatters on government land. We do not see the need for change. For these reasons, we do not support the motion.

Thank you.

End/Wednesday, March 8, 1995

32

Motion debate on rehousing of rooftop structure occupants ♦ ♦ ♦ ♦ ♦

Following is the speech by the Deputy Secretary for Planning, Environment and Lands, Mr Canice Mak, in the motion debate on rehousing of rooftop structure occupants in the Legislative Council today (Wednesday):

Mr President,

The Secretary for Housing has spoken about the rehousing of the clearees. I will concentrate on the clearance of unauthorised rooftop structures and the proposal to conduct a territory-wide occupation survey of these structures.

Before speaking on the main points contained in the Motion, I would first like to assure Members that our problem of illegal rooftop structures is not getting bigger. That is to say, the problem is being contained. My colleagues in the Buildings Department carry out regular patrols of Hong Kong’s buildings. In carrying out these patrols, they pay special attention to building works being constructed or newly completed. Once discovered, priority action will be taken to take down these structures. The department also takes priority action on complaints or reports of new unauthorised building works. It was a common sight some years ago that as soon as an occupation permit had been issued, all kinds of illegal building activities sprang up. We do not see such activities so often now in new buildings. We have successfully put our message across by our action and by our publicity efforts.

Government’s prime concern is safety, not just the safety of members of the public, but also the safety of the rooftop occupants themselves. Given the inevitably limited resources available and the large number of rooftop structures, priority enforcement action is taken against unauthorised rooftop structures which:

(a) cover the whole roof of a building with only one staircase, thereby obstructing the escape of flat occupiers in the event of a fire;

(b) adversely affect the structural stability of the building, endangering life or property;

(c) are in unstable and dangerous or dilapidated condition; and

(d) are being erected or newly completed at time of discovery.

33

Honourable Members will therefore appreciate that, as far as existing rooftop structures are concerned, enforcement action is targeted at those which may pose a threat to life or property. It will be irresponsible on the part of Government if action is not taken against these structures. I think this point is shared by Honourable Members.

Before speaking on the suggestion of a territory-wide occupation survey of rooftop structures, I will deal with one point. This is the concern that many transactions of rooftop structures are undertaken by solicitors and estate agents. This tends to give the impression that the structures are legal structures. We have discussed this with the Law Society. The Society, I understand, has reminded its members that in handling transactions involving or likely involving unauthorised structures, the illegality and the liability to demolition of such structures should be fully disclosed to the prospective seller and purchaser. Members of the Society have also been reminded to ask purchasers to employ professional surveyors to check the property against approved building plans where there is reason to suspect unauthorised structures exist. We will consider whether anything further need to be done, in conjunction with the Attorney General's Chambers and the legal profession.

The Motion requests that the Government conduct a territory-wide occupation survey of rooftop structures. Before we undertake such a survey, we need to establish clearly from the outset what the objectives of the survey are. Is the objective of the survey to assess the scale of the problem with a view to finding out ways and means to minimise it? Is the objective also to work out a programme to identify and clear those structures which pose the most danger to life and property? Or is the objective to demolish all the illegal rooftop structures and rehouse their occupants? If the objective is the last one, it will not serve a useful purpose. As the Secretary for Housing has clearly stated, the existing criteria for rehousing are already well-established and well-known. The policy is reasonable and fair. We do not want such a survey to be used as a basis to change the existing rehousing policy. Neither do we want such a survey to arouse false expectations on the part of the occupants.

It is estimated that about 40,000 private buildings in the territory have rooftop structures. Not all these structures are for domestic use and some are built by the owners of flats in the same building. To conduct a worthwhile and comprehensive survey, it would be necessary to visit all such structures to establish their status and to register the personal details of the occupants. Further checks would be needed to determine ownership of structures and those occupants who genuinely live there. This may not always be possible. Our very preliminary estimate is that such an enormous task would require some 80 full-time staff over one year and its cost would be in the order of $20 million. Also, the results of such a survey would be of limited usefulness unless additional resources were regularly devoted to update the particulars.

34

The reality is that resources are limited. Even assuming that resources for the survey are forthcoming, it may be more worthwhile to use such valuable resources on other important tasks, like more enforcement action against other types of unauthorised building works or enhancing our capability in monitoring and supervising building and demolition sites. Remember that our fundamental objective is to ensure public safety and it would be in the public interest to devote resources to enhance this objective. Apart from the resource implications, an occupation survey of rooftop structures would be likely to lead to abuses, such as more illegal occupation in anticipation that persons covered by the survey would eventually be rehoused.

To conclude, a territory-wide occupation survey of rooftop structures may give rise to many operational and resource implications. Nevertheless, the Administration will give further consideration to the idea.

Thank you, Mr President.

End/Wednesday, March 8, 1995

4

Gas Safety (Amendment) Bill 1995 ♦ ♦ ♦ ♦ ♦

Following is the speech by the Acting Secretary for Economic Services, Mrs Elizabeth Bosher, when moving the second reading of the Gas Safety (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the Gas Safety (Amendment) Bill 1995 be read a second time.

The purpose of the Bill is to provide for control, in the interests of safety, over the carrying out of construction works in the vicinity of gas pipes.

The Bill has three main provisions. First, it enables the Governor in Council to make regulations to control the carrying out of works in the vicinity of gas pipes and increases the maximum penalty that may be provided for in regulations made under the Gas Safety Ordinance to a fine of $200,000 and imprisonment for 12 months and, in the case of a continuing offence, a daily penalty of $10,000.

35

Secondly, it enables the Gas Authority to inspect works in the vicinity of a gas pipe and to require such improvement measures as he considers necessary in the interests of gas safety.

Thirdly, it enables the Gas Authority to intervene in the interests of safety when there is a failure to comply with an improvement notice and provides for recovery of the cost of any improvement measures which it is necessary for the Authority to take from the person who has failed to comply with the improvement notice.

If enacted by this Council, the Bill will be followed by a new regulation requiring that construction works should not be carried out near a gas pipe unless its position has been checked and steps taken to ensure that it will not be damaged by the works. The regulation will provide that a person not taking all reasonable measures to protect a gas pipe from damage arising out of his construction works will commit an offence and be liable on conviction to the new maximum penalty proposed in the Bill.

The Bill will be brought into effect 6 months after enactment to allow time for the new regulation to be made, for a code of practice to be issued by the Gas Authority and for the gas supply companies and the construction industry to adjust to the new requirements.

Mr President, these proposals reflect the Government’s concern at the frequent damage to gas pipes through careless construction and excavation works. There were 120 such incidents in 1994. Though the consequences of most of these incidents were - thankfully - relatively minor, damage to a gas pipe may cause fire or explosion, posing a risk to workers, the general public and property in the vicinity. The proposals that I have outlined aim to minimise the potential for such hazards. I therefore commend the Bill to members.

End/Wednesday, March 8, 1995

Credit Unions (Amendment) Bill 1995 ♦ ♦ ♦ ♦ ♦

Following is the speech by the Acting Secretary for Economic Services, Mrs Elizabeth Bosher, when moving the second reading of the Credit Unions (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the Credit Unions (Amendment) Bill 1995 be read a second time.

36

The purpose of the Bill is to simplify the procedures for winding up a credit union. Winding up of a credit union normally becomes necessary when the original common bond of association between the members has dissipated and the union is consequently no longer carrying on business. Under the Credit Unions Ordinance, the procedure for winding up a credit union follows the complex provisions for winding up a company under the Companies Ordinance. In the interests of efficiency, the Registrar of Credit Unions has proposed that the procedure for winding up a credit union should be brought broadly into line with the simpler procedures for winding up a co-operative society under the Co-operative Societies Ordinance.

The Bill proposes that the Registrar of Credit Unions, rather than the Court as at present, be empowered to cancel the registration of a credit union on specified grounds and to appoint a liquidator, whom the Registrar intends should be one of his staff.

The Bill also sets down the powers of the liquidator and the powers of the Registrar to control the liquidation. It provides that any person aggrieved by an order of the Registrar to cancel the registration of a credit union may appeal to the District Court.

Mr President, I commend the Bill to this Council.

End/Wednesday, March 8, 1995

Tai Lam Tunnel and Yuen Long Approach Road Bill *****

Following is the speech by the Secretary for Transport, Mr Haider Barma, in moving the second reading of the Tai Lam Tunnel and Yuen Long Approach Road Bill in the Legislative Council today (Wednesday):

Mr President,

I move that the Tai Lam Tunnel and Yuen Long Approach Road Bill be read the second time.

37

Purpose of the Bill

The Bill now before Honourable Members provides for the award of a 30 year franchise to the Route 3 (CPS) Company Limited to build and operate the Tai Lam Tunnel and Yuen Long Approach Road. The tunnel and the approach road will form an integral part of Route 3, providing a vital strategic corridor serving the Northwestern part of the New Territories. This will be a dual-3 lane facility about 10 km in length, linking Ting Kau Bridge in the south and the New Territories Circular Road at Au Tau in the north, together with an interchange to connect with the Yuen Long Southern Bypass.

Importance of the Project

Members of this Council and the Administration have long shared a common objective: to secure the early construction of the Tai Lam Tunnel and Yuen Long Approach Road Sections of the Route 3 Country Park Section. The project is urgently needed to provide relief for traffic congestion in the Northwest NT, particularly along Tuen Mun Road. Upon its completion, the journey time between Ting Kau and Au Tau will take about 10 minutes. This compares very favourably with travel via Tuen Mun Road, which at present can take up to 50 minutes or even longer, depending on traffic conditions. What is equally significant is that upon the opening of the new facility, we expect traffic congestion in Tuen Mun Road to be reduced by about 25%.

The new road will also facilitate cross-border traffic, which is vital to our economy, and it will allow further development in the North West NT.

The Proposed Franchise

Our proposal is to implement this project under the terms of a "Build, Operate and Transfer" franchise. This is in line with the Government's policy of optimising private sector participation in the construction and operation of our road infrastructure. Otherwise, Government resources in the region of over $7 billion would have had to be allocated to this project, at the expense of other vital community projects.

The proposed franchise is modelled on that awarded in respect of the Western Harbour Crossing. The project documentation consists of the Bill before Members today, which seeks to award the franchise, and the Project Agreement which defines in detail the financing, design, construction, operation and maintenance requirements. We propose in Clause 4 of the Bill that the BOT franchise should be awarded to the Route 3 (CPS) Company Limited. The package offered by that Company is the best bid received following a very competitive tendering exercise and intensive negotiations. Mr President, let me now highlight some of its key features.

38

Project Costs

The Company's budgeted project cost of $7,254 million, in money of the day, is the lowest received from the three tenderers. Any cost overrun will be borne entirely by the shareholders of that Company.

Construction Period

The Company has offered a very aggressive construction schedule of 38 months. This is the shortest construction period proposed by any of the three bidders. Road users will therefore be able to benefit from this much needed facility at the earliest possible time. And again, if the franchisee delays completion of the facility, then the Company must bear the loss of revenue that will result.

Opening Tolls Levels

The opening toll levels are set out in Schedule 1 of the Bill. Members will note that the initial tolls, which are in 1998 prices, are highly competitive. The tolls for private cars and double- decked buses, for example, are at $15 and $45 respectively. Furthermore, under Schedule 3 of the Bill, there will be only three anticipated toll increases over the entire 30-year life of the franchise. We must also remember that there will be no compulsion to use the tolled road. Motorists will still be able to use the Tuen Mun Road or Tolo Highway free of charge in their journeys to the urban area, and this factor will also act as a brake on future toll levels.

Toll adjustment Mechanism

The proposed toll adjustment mechanism for the franchise, explained in Part X of the Bill, is almost identical to that introduced for the Western Harbour Crossing, but with some simplification and refinement. The object of the mechanism is to provide the Company with a reasonable but not excessive return whilst maintaining a low and stable toll regime for road-users. I must stress that the toll adjustment mechanism is an inseparable part of the BOT package, because without a degree of certainty on the part of the Company to earn sufficient revenue to service its debts, bankers simply would not lend the Company this money to finance such a costly project.

39

For the avoidance of any doubt, let me spell out that the mechanism will not guarantee the Company any level of revenue or rate of return. All it does is to provide the Company the opportunity to earn revenues over the 30 year life of the franchise which could give them an average return of 15.18% on their investment. Nor does the mechanism automatically allow the Company to have future toll increases. This is a common misconception. The franchisee must provide annual audited accounts. The Government will carefully examine these to see whether the conditions for allowing a toll increase under the mechanism have been met. The Government will have the power to dispute the amounts, and in the event of failure to reach an agreement with the Company, the matter will be put to an independent expert for arbitration.

Moreover, under Clause 38, any revenue over and above a set limit will be placed in a Toll Stability Fund which may be used by the Government to defer any future toll increases. At the expiry of the franchise, any amount remaining in the Toll Stability Fund will be retained by the Government.

Supervisory Powers of the Government

The Government will have supervisory powers under the franchise to ensure that the Company operates the facility safely and efficiently, and that it meets its obligations under the franchise. These supervisory powers are similar to those adopted in the case of the Western Harbour Crossing, but with a number of improvements including:

(a) providing the Government with the power to impose financial penalties on the Company for default or breach of the Ordinance or the Project Agreement;

(b) requiring the Company to make public the financial and operational information which is reasonably requested by the Government; and

(c) providing that the Government can direct the Company to make by-laws relating to safety matters.

40

Conclusion

Mr President, the Administration is convinced that as a result of a highly competitive tendering exercise, the Bill before members provides a very attractive package allowing the construction of this facility in the shortest possible time and at the lowest cost to users over the whole franchise period. It should be noted that the Company will have to bear considerable market risks, for example with regard to traffic volumes, interest rates during the construction period, possible cost overruns, and unforeseen delay in the construction schedule. The Government is not required to provide any financial support or guarantees to the Company, whether in respect of traffic volume, the completion dates of connecting infrastructure or any commitment not to build competing infrastructure in future.

The target Base Case IRR of 15.18% for the project compares very favourably with other similar BOT projects in the region, which require IRRs in the range of 15 to 25%, and which in most cases include Government support or guarantees.

Within the limits imposed on us by the need to maintain strict confidentiality during the tendering and negotiation process, I have endeavoured to keep members of this Council informed of progress in drawing up the franchise and of its key terms and conditions. Now that the Bill has been published, I look forward to working with the Bills Committee in seeking Members support for the early enactment of this legislation to grant the franchise.

Mr President, with these remarks, I commend the Bill to Honourable Members.

End/Wednesday, March 8, 1995

Funds sought for government services

*****

Following is the speech by the Secretary for the Treasury, Mr Donald Tsang, in moving the Vote on Account Resolution in the Legislative Council today (Wednesday):

Mr President,

I move the motion standing in my name in the Order Paper.

41

The purpose ot this motion is to seek funds on account to enable the Government to carry on existing services between the start of the financial year on April 1, 1995 and the enactment of the Appropriation Bill. This follows the procedure long established in this Council.

We have determined the funds on account sought under each subhead in accordance with paragraph four of the resolution, by reference to percentages of the provision shown in the draft Estimates As the draft Estimates are changed from time to time, by the Finance Committee or under delegated powers, the provision to which the percentages are applied will also change. Thus the provision on account under each head is not constant but may vary, with every increase being matched by an equal decrease. The initial provision on account under each head is shown in the footnote to this speech. The aggregate total under all heads is fixed at $63,614,082,000 and cannot be exceeded without the approval of this Council

The resolution also enables the Financial Secretary to varv the funds on account in respect of any subhead, provided that these variations do not cause an excess over the amount of provision entered for that subhead in the draft Estimates or an excess over the amount of funds on account for the head

The Financial Secretary will issue a vote on account warrant to the Director of Accounting Services authorising him to make payments up to the amount specified in this motion and in accordance with its conditions. The vote on account will be subsumed upon the enactment of the Appropriation Bill, and the general warrant issued after the enactment of the Appropriation Bill will replace the vote on account warrant and will be effective from April 1. 1995

Mr President. I beg to move

End/Wednesday, March 8. 1'95

42

Council for Academic Accreditation's report tabled ♦ * * * ♦

Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, in presenting the Hong Kong Council for Academic Accreditation's Annual Report 1993-94 in the Legislative Council today (Wednesday):

Mr President,

I have pleasure in presenting the Hong Kong Council for Academic Accreditation's Fourth Annual Report 1993-94 and highlighting some of the main features during the year under review.

The HKCAA's role and responsibilities are to validate degree programmes and review the general academic standards of Hong Kong's four non- university tertiary institutions. It disseminates information on the development of higher education, quality assurance and academic standards; develops links with accreditation bodies throughout the world, and advises Government, other organisations and individuals on the comparability of academic standards and the accredited status of academic qualifications.

During 1993-94, the HKCAA completed 19 review exercises comprising validations, revalidations, consultancy studies and the monitoring of conditions and requirements placed on degree programmes.

The Council continued to work closely with the Academy for Performing Arts, the Open Learning Institute of Hong Kong. Lingnan College and the latest Hong Kong tertiary institution, the Hong Kong Institute of Education, for which it conducted institutional and programme reviews and provided guidance on quality assurance.

In response to increased concerns over academic accreditation and recognition, the Council has expanded its advisory role and during the year provided information and advice on higher education, quality assurance and standards to Government, other organisations and members of the public. Notably, its role in providing information and guidance with regard to overseas education initiatives in Hong Kong expanded significantly.

43

In order to establish the comparability of qualifications and to share experience of quality assurance methods gained worldwide, the Council continued its overseas liaison activities. During the year the Council continued to strengthen its links with higher education organisations and individuals outside Hong Kong, including the PRC and Taiwan. The HKCAA continued to administer the International Network for Quality Assurance Agencies in Higher Education whose membership numbered 70 organisations from 36 different countries.

Following the recommendations of the Education Commission's Report No. 5 regarding the development of an Institute of Education and the upgrading of teachers' qualifications, the HKCAA provided advice to Government on qualifications and training for the teaching profession. In particular, it carried out consultancy studies covering the four teacher education colleges and the Institute of Language in Education and participated in the work of the Advisory Committee on Teacher Education and Qualifications and its subcommittees.

Developments in some of Hong Kong's professional bodies resulted in the HKCAA being asked to advise on accreditation methods. It worked with the Hong Kong Institution of Engineers and the Hong Kong Society of Accountants to provide information and advice about qualifications and the way in which they could be evaluated.

Finally, 1 would like to take this opportunity to thank the Chairman and members of the Council for their outstanding services made during the year and their continued contributions to the development of higher education in Hong Kong during the year.

End/Wednesday, March 8, 1995

i

44

Provision of CAT scanners

*****

Following is a question by the Hon Frederick Fung Kin-kee and a reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

With regard to the provision of CAT scanning service, will the Government inform this Council:

(a) of the total number of CAT scanners in the hospitals managed by the Hospital Authority;

(b) of the respective figures for 1993/94 and 1994/95 regarding the average daily operating hours of the CAT scanners, the average daily number of patients receiving CAT scanning examination, and the average period of waiting for an appointment to use such service; and

(c) whether the Hospital Authority has referred its patients to private hospitals to receive CAT scanning examination; if so, what are the numbers of such cases in 1993/94 and 1994/95 respectively?

Mr President,

There are 10 CAT scanners currently installed in public hospitals managed by the Hospital Authority, capable of handling about 230 patients on a daily basis. Six of these scanners have been operating on a 24-hour basis since 1993, except for one each in Queen Mary Hospital, Caritas Medical Centre, Kwong Wah Hospital and Ruttonjee Hospital where radiologist and other supporting staff are put on call outside normal operating hours to provide service for patients.

Under the established clinical practice, all urgent patients will be examined by CAT scanners on the same day. Non-urgent patients are prioritised according to their need and the waiting time for treatment for eighty per cent of such cases is within four weeks. This will be reduced further with a planned addition of two new scanners within the next financial year.

With the implementation of hospital clustering and service networking, there is no operational need to refer patients for CAT scanning outside the public hospital system. Some patients with non-urgent conditions may prefer to obtain earlier examination in the private sector but no statistics are kept on the number of such cases.

End/Wednesday, March 8, 1995

45

Review of urban renewal policy *****

Following is a question by the Hon Albert Chan Wai-yip and a reply by the Deputy Secretary for Planning, Environment and Lands, Mr Canice Mak, in the Legislative Council today (Wednesday):

Question:

Two motions were passed by this Council in the 1991-92 and 1993-94 sessions, urging the Government to review its urban renewal policy with a view to improving the compensation and rehousing arrangements for the affected property owners and tenants of redevelopment projects as well as improving the social effectiveness of such schemes. Despite its undertaking to carry out a review of the policy, the Government has so far not reported the outcome of such review to this Council. In this regard, will the Government inform this Council:

(a) what progress has been made so far in its review of the urban renewal policy; whether the Government has drawn up any concrete proposals for deliberation by this Council; and

(b) whether it will consider injecting more funds to help rehouse residents affected by redevelopment or adopting other measures so as to enhance the Land Development Corporation’s capability of undertaking urban redevelopment projects, in order to speed up the urban renewal process?

Answer:

Mr President,

We will shortly be consulting Members of this Council, through the Planning, Lands and Works Panel, on a package of measures aimed at facilitating urban renewal and redevelopment.

I do not want to pre-empt the final decision on the actual package and the consultation by giving details today but I can say that the package will be a comprehensive one. The main features are an expanded role for the Land Development Corporation as a primary agent of urban renewal and facilitator of private sector projects, more emphasis on the relocation of both residents and businesses affected by redevelopment projects and some changes to the system of ex-gratia allowances for such persons. There are also some new initiatives in the areas of owner participation and in making projects viable, which in normal circumstances would not be so.

End/Wednesday, March 8, 1995

46

Promotion of franchised business operations

*****

Following is a question by the Hon Huang Chen-ya and a reply by the Secretary for Trade and Industry, Mr T H Chau, in the Legislative Council today (Wednesday):

Question:

In 1992, a team of staff in the Business Management Service Unit of the Hong Kong Productivity Council (HKPC) were assigned special responsibilities for promoting franchised business operations. A laundry operated under such mode of operation, which was one of the companies widely promoted by the HKPC, had been involved in commercial disputes. In this connection, will the Government inform this Council whether

(a) the HKPC has conducted a review of the promotion of the laundry concerned; and

(b) the termination of the consultancy service by the HKPC to promote franchised business operations was a result of the involvement of the above-mentioned laundry in commercial disputes; if not, what were the reasons for the termination of the service?

Answer:

In 1992 and 1993, the Hong Kong Productivity Council organised a programme of events to familiarise the business community with the general concept of franchising, including two study missions to the International Franchise Expo in the United States, and two exhibitions. The Council did not specifically promote any particular company or operation, although examples were used to illustrate the concept. It follows, therefore, that the Council has not conducted the sort of review referred to in part (a) of the Honourable Member's question.

The Hong Kong Franchising Association, which was formed by the Hong Kong General Chamber of Commerce in 1992, played an increasingly active role in promoting the franchising concept, and organised a third exhibition in 1993. The Productivity Council concluded that the Association was better placed to continue promotional work in connection with the franchising concept, and the Council therefore decided to cease its active involvement in 1993. This decision was not taken for the reason set out in part (b) of the Honourable Member's question.

End/Wednesday, March 8, 1995

47

Border crossing points *****

Following is a question by the Hon James Tien Pei-chun and a reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

According to a research report produced by the Transport Branch, it is estimated that the number of vehicle trips made every day via the border crossing points between Hong Kong and China will exceed 50,000 by 2000. Even if the three crossing points at Lok Ma Chau, Man Kam To and Sha Tau Kok are open 24 hours daily, they will still be unable to cope with the soaring traffic volume arising from the ever-increasing demand for cross-border transport facilities as a result of the developments in the industrial and commercial sectors in the territory. In this connection, will the Government inform this Council whether :

(a) it will consider opening new border crossing points; if so, what progress has been made in the study on opening new border crossing points and the construction of associated road networks; and

(b) it has considered introducing joint checks by various concerned departments and other measures which will further streamline the border-crossing procedures?

Reply:

Mr President,

(a) May I first clarify that the Administration has not produced or published any research report on cross border traffic. However we do keep statistics and have estimated the growth trend. Our records show that in 1994 an average of 22,304 vehicles crossed the border each day using the three crossing points at Lok Ma Chau, Man Kam To and Sha Tau Kok. According to our projections, the combined throughput could rise to about 34,000 vehicle trips a day by the end of 1997 and to 46,000 by the year 2000. The existing crossing points should be able to cope with this demand up to 1997.

48

Lok Ma Chau is now the busiest crossing point and we have the capacity there to increase the number of kiosks. At present, only 9 of the 14 processing kiosks are in use and we have the space there for further expansion and providing up to 24 kiosks. In addition, more kiosks can be opened round the clock at this check point if traffic volumes justify this. It is also important to note that road access to the border will be greatly improved with the completion of the dual lane Route 3 (Country Park Section) in 1998.

The need to provide additional border crossing points as well as new access roads are being studied in the context of the Territorial Development Strategy review. In this respect, the recently established Infrastructure Coordinating Committee will provide an excellent forum for the discussion of strategic plans with Chinese representatives, so as to ensure that future processing capacity on both sides of the border can match rising demand.

Apart from road access, Honourable Members are aware that, as announced in the Railway Development Strategy, we are also planning the construction of a new railway line in the North West New Territories from the border to the urban area for completion by the year 2001. This will enhance the carriage of freight containers by rail directly into the Kwai Chung container port and will thus relieve the road system and pressure at the border crossing points. The KCRC has already been invited to submit proposals for building and operating this railway.

(b) The present operating procedures and the physical layout of the border crossing points does not permit parallel checking by the Immigration and Customs Officers, and redesign of the crossing points would be difficult and disruptive given the physical constraints of the sites. We do however keep under constant review measures to streamline border crossing procedures. For example, the Immigration Department will install optical character readers in September this year at the three crossing points to speed up the checking of drivers' identity papers.

End/Wednesday. March 8. 1995

49

Drug abuse in Pillar Point Vietnamese Refugee Centre ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Zachary Wong Wai- yin and a reply by the Acting Secretary for Security, Mr Ken Woodhouse, in the Legislative Council today (Wednesday):

Question :

It is reported that there is a serious problem of drug abuse in the Pillar Point Open Detention Camp. Will the Government inform this Council:

(a) of the total number of detainees addicted to drugs in the Camp;

(b) what measures the police are taking to combat the drug trafficking and drug abuse problems in the Camp; and

(c) whether the chance of those detainees who are addicted to drugs resettling overseas will be affected; if so, what measures the Government will adopt to solve this problem?

Reply:

Mr President,

(a) It is estimated that about 450, out of the 1,500 registered population of refugees living in Pillar Point Vietnamese Refugee Centre, are addicted to drugs.

(b) The Police Force take vigorous enforcement action to combat drug trafficking and drug abuse in Pillar Point, in the same way that they take vigorous enforcement action against drug offenders throughout the territory. This action involves, essentially, the collection of criminal intelligence, raids, arrests and the prosecutions. During the last year the Police carried out 44 raids in Pillar Point, and took out 92 prosecutions for drug offences.

50

(c) Under the Comprehensive Plan of Action, all refugees will be resettled overseas. The United Nations High Commissioner for Refugees assists refugees secure overseas resettlement. Drug addiction does, of course, affect the acceptability of refugees by third countries for overseas resettlement, but it does not make them unresettleable; simply harder to place. In the case of addicted refugees, the United Nations High Commissioner for Refugees arranges for their detoxification before departure. At a Technical Meeting convened by the United Nations High Commissioner for Refugees in Bangkok in June 1994, the Hong Kong Government appealed to resettlement countries to relax their criteria for accepting these hard-to-place refugees from Hong Kong. Since 1 April 1994, about 300 of these refugees, including their family members, have been resettled overseas from Pillar Point.

End/Wednesday, March 8, 1995

Use of ICE not a trend *****

Following is a question by the Hon Timothy Ha Wing-ho and a written reply by the acting Secretary for Security, Mr Ken Woodhouse, in the Legislative Council today (Wednesday):

Question:

According to figures released by the Narcotics Bureau of the Police, a total of 123 kilogrammes of 'ice' was seized by the Police and the Customs and Excise Department last year, which was the highest on record. In this connection, will the Government inform this Council :

(a) whether there are any signs indicating that the abuse of "ICE" has become a new trend among drug addicts;

(b) of the quantity of 'ICE' seized by the Police and the Customs and Excise Department in each of the past three years; and

(c) of the estimated numbers of adults and youngsters abusing 'ICE' habitually in each of the past three years; and what measures are being taken by the Government to tackle the problem?

51

Reply :

Mr President:

(a) There is no evidence to suggest that 'ICE' (Methylamphetamine) has become a new trend among drug abusers. The majority of the 'ICE' seized in 1994 were destined for neighbouring countries in South East Asia.

(b) Seizures of 'ICE' by the Police and the Customs and Excise Department for the past three years are -

1922 1221 1224

Police 18.6 kg 1.8 kg 123 kg

Customs 0.18 kg 0.01 kg 0.001 kg

(c) Separate figures on the number of persons reported to be abusing 'ICE' are not available as 'ICE' is grouped together with other amphetamines for statistical purposes. The numbers of persons reported to be abusing amphetamines over the past three years are -

1222 1221 1224

Reported persons aged under 21 abusing amphetamines 18 33 28

(% of reported persons under 21) (1.2%) (1.3%) (0.8%)

Reported persons aged 21 and abusing amphetamines 26 44 50 above

(% of reported persons aged 21 and above) . * (0.2%) (0.3%) (0.4%)

The number of abusers of amphetamines (with which 'ICE' is classified) has remained small.

52

The Government tackles the problem of drug abuse by a multi-faceted approach:

through vigorous law enforcement we interdict the smuggling of drugs into Hong Kong, and detect and prosecute offenders so as to clamp down on the illegal supply of drugs into Hong Kong;

* we provide a wide range of both mandatory and voluntary programmes for the treatment and rehabilitation of drug abusers; and

* through preventive education and publicity we aim to promote a healthy lifestyle, especially among young people, and encourage them to resist the temptation to take drugs.

End/Wednesday, March 8, 1995

Emission of exhaust gas from private cars *****

Following is a question by the Hon Lau Wong-fat and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question :

Regarding the problem of emission of exhaust gas from private cars, will the Government inform this Council:

(a) of the emission standard currently in force for private cars; and

(b) whether the relevant department requires that private cars over six years old must meet the emission standard in the annual inspection of such vehicles before approving the renewal of licences; if not, whether the Government will consider introducing such an requirement?

53

Reply :

Mr President,

(a) All vehicles running on the road, including private cars, are required under the Road Traffic (Construction and Maintenance of Vehicles) Regulations to meet a smoke emission standard of 60 Hartridge Smoke Unit (HSU).

For new cars, emission standards are set out in the Air Pollution Control (Vehicle Design Standards)(Emission) Regulations. These standards are as stringent as those adopted in Europe, USA and Japan and all private cars have been required to meet these standards before acceptance for first registration in Hong Kong since 1992. More stringent emission standards for new vehicles are proposed from April 1995.

(b) Private cars over six years old are required to meet a smoke emission standard of 60 HSU at their annual inspection before they can have their licences renewed by the Transport Department.

End/Wednesday, March 8, 1995

Falling of masonry and tiles . * ♦ ♦ ♦ ♦

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

As the falling of masonry and tiles off the external walls of some private and government buildings threatens the safety of pedestrians, will the Government inform this Council:

(a) how many pedestrians were killed or injured in the past three years as a result of masonry and tiles falling off the external walls of buildings;

54

(b) how it is to be assessed who is responsible in the event of falling masonry and tiles causing casualties or damages to property and whether any criminal charge can be preferred in such accidents;

(c) whether there is any mechanism to monitor and check the safety of buildings whose external walls are covered with tiles; and whether there are any measures to prevent the occurrence of such accidents; and

(d) whether it will consider prohibiting the laying of tiles on the external walls of buildings?

Answer

The answers to the four parts of this question are as follows:

(a) No statistics regarding private buildings are kept. As regards Government buildings, no pedestrians were killed or injured as a result of masonry and tiles falling off the external walls in the past three years.

(b) Generally, the Police and/or the Buildings Department are responsible for investigating cases of falling masonry or tiles which result in death or injury.

Maintenance of buildings is ordinarily the responsibility of the owner. Where an owners' corporation exists, it has a statutory duty to "maintain the common parts ... in good and serviceable repair and clean condition" under the Building Management Ordinance.

As regards criminal liability, if any, for allowing masonry or tiles to fall off the external walls of buildings, Section 4B(1) and 4B(2) of the Summary Offences Ordinance provide:

i. If anything is dropped or allowed to fall from any building to the danger or injury of any person in or near a public place, the person who drops that thing or allows it to fall commits an offence and is liable to a fine of $10,000 and imprisonment for 6 months.

55

ii. If anything is dropped or allowed to fall from any building in the course of construction, repair or decoration of the building or part thereof, to the danger or injury of any person in or near a public place, the principal contractor on the site and the contractor carrying out the construction, repair or decoration commits an offence and is liable to a fine of $50,000 and imprisonment for one year.

If the tiles or masonry fall off by accident, there is no criminal offence.

(c) Under Section 26 of the Buildings Ordinance, an owner of a dangerous or potentially dangerous building will be ordered to carry out remedial works. If he fails to do so, the Buildings Department will carry out the works at his expense. Also, under Section 26A of the said ordinance where on inspection the Building Authority identifies any dilapidation or defect in a building, the owner will be ordered to investigate and repair. In case of any default of such order, the Buildings Department will carry out the repair at the owner's expense. Loose tiling or masonry falls within these provisions.

Starting from 1 March 1995, prosecution of offenders under the Buildings Ordinance has been stepped up. It is hoped that this will have a greater deterrent effect and hence, better protect the public from dangerous building works, including loose tiling or masonry.

Apart from taking enforcement action, the Buildings Department's publicity efforts constantly stress that building maintenance is the responsibility of the owners. It is now preparing a leaflet on "Detection of External Wall Defects" which will be available for distribution to the public in the later part of 1995.

(d) At this stage, the control of the laying of tiles on the external walls of buildings is adequate. The Administration has no plan to prohibit the use of such tiles.

End/Wednesday, March 8, 1995

56

Squatter structures in Shek O *****

Following is a question by the Hon Jimmy McGregor and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

Bearing in mind the need for all tenants on Government land paying rental to the Government to be treated fairly, will the Government inform this Council why some tenants in the Shek O Village area such as those on site No. 466 and site No. 400-420 are paying very substantial rentals to the Government with over 100% increases since 1994, while other tenants in the same Shek O Village area such as those on sites No. 410, 784, 787, 814, 817 and 856 on which restaurants and shops are located apparently are paying no Government rentals at all?

Answer:

Mr President,

Structures on Site Nos. 410, 784, 787, 816, 817 and 856 in Shek O are squatter structures built on government land. They are not covered by any government licence or tenancy agreement. Therefore, no rent is charged.

Site Nos. 466 and 400/402 were covered by Crown Land Licences issued in the early 1980s. In 1984, in accordance with government policy, these licences were converted to short term tenancies. Full market rental has been payable since then. The rentals are revised every three years and the last review for these tenancies was on 1 January 1995. Should the tenants disagree with the new rental, appeals may be made to the Director of Lands.

End/Wednesday, March 8, 1995

57

Driving Offence Points System *****

Following is a question by the Hon Henry Tang Ying-yen and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

With regard to the Driving Offence Points System which was introduced in August 1984, will the Government inform this Council:

(a) whether the Scheme has achieved its objectives of improving road safety as well as deterring frequent offenders of traffic regulations so as to raise their driving standard and reduce accident-induced casualties;

(b) of the total number of drivers who were disqualified from holding a driving licence for three months after incurring 15 penalty points in the past two years; of this number, how many were disqualified for another six months for committing a further offence; and

(c) what other measures — apart from putting out posters and Announcements of Public Interest (APIs) when the system was first introduced — have been taken by the Government to arouse the awareness of drivers and to make them understand clearly the number of points incurred in respect of the 14 categories of offences which directly affect road safety?

Reply:

Mr President, •

(a) Since the Driving Offence Points system was introduced in 1984, there has been a marked decline in the number of traffic accidents, notwithstanding the significant increase in numbers of vehicles over the same period. For example, there were 4,968 serious and fatal accidents in 1984, compared with 3,558 in 1994. This declining trend is due to a number of factors, but we believe that the Driving Offence Points System has also played its part in improving road safety.

58

(b) In the past two years, 9,721 drivers were disqualified from holding a driving licence for three months, and 1,419 drivers were disqualified for six months under the Road Traffic (Driving-Offence Points) Ordinance.

(c) The Transport Department publishes a booklet on "How the Driving-Offence Points System Affects You". This is available free of charge from Government publications outlets as well as from the Transport Department licensing offices. The booklet describes the objectives of the scheme, the offences which incur penalty points, and the method of calculation. When a motorist has incurred eight penalty points, a warning letter is issued to him by the Transport Department.

End/Wednesday, March 8, 1995

Recycling of waste materials * * * * *

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question :

The waste paper recycling projects have been implemented by the Government for some time. According to experience gained in foreign countries in the recycling of waste materials, glass ware and plastic products are included in addition to waste paper. In this regard, will the Government inform this Council whether the recycling projects will be expanded to include glass and plastic products; if so, when these projects will be implemented, how the waste materials will be collected, and what the estimated administration cost will be, if not, why not?

Reply :

Mr President,

At present, we have no plans to extend the waste paper recycling projects in government departments to include glass and plastic products because waste paper is the major type of waste arising from government offices.

59

However, at present over 90% of locally filled glass beverage bottles are recovered for reuse through deposit refund schemes and about 40% of mainly preconsumption plastic wastes are recovered for recycling.

As regards recycling generally, the Administration has commissioned a Waste Reduction Study to examine the current levels of waste generation and collection patterns, and to identify measures to reduce waste production and increase reuse and recovery.

End/Wednesday, March 8, 1995

Designation of polling stations ♦ * * ♦ *

Following is a question by the Hon Emily Lau Wai-hing and a written reply by the Secretary for Constitutional Affairs, Mr Nicholas Ng, in the Legislative Council today (Wednesday):

Question :

According to recently published information on polling stations for the Municipal Council elections in March this year, some of the polling stations designated for certain districts in the 1994 district board elections have been cancelled. However, there are no replacement polling stations designated for the districts concerned. In this connection, will the Government inform this Council :

(a) of the total number of polling stations cancelled, their respective locations and the reasons for cancellation of the respective polling stations;

(b) of the reasons for not designating any replacement polling stations for the districts concerned;

(c) whether a similar situation will occur in the 1995 Legislative Council

election;

(d) whether it has any plans for opening more polling stations in future elections to facilitate voting, which will help to boost the turn-out rate of voters; and

(e) whether any consideration will be given to setting up mobile polling stations when the need arises?

60

Reply :

(a)

(b)

(c)

(d)

(e)

After the September 1994 District Board elections, the Registration and Electoral Office (REO) reviewed the designation of the polling stations used in the elections, taken into account the views and comments of candidates, returning officers and the public. It was found that the locations and facilities of some of these polling stations were unsatisfactory. As a result, 27 polling stations have been replaced, 5 added and 7 merged with other polling stations. There are now a total of 440 polling stations in the territory. The Annex sets out the details of the 7 polling stations merged with others and the reasons for the merger.

Before a polling station is cancelled, the REO will first consider the availability of a suitable replacement. Only where there is no suitable alternative would it consider merger with another neighbouring polling station. Various factors are taken into account in the designation of a polling station, including the geographical spread, physical feature, population distribution and transport facilities available in the area. An ideal polling station should be centrally located in the area, generally known to local residents and easily accessible. The polling station should be sufficiently spacious to cope with the size of the electorate. Furthermore, the station should not, as far as possible, be closely connected with any candidate.

To prepare for the September Legislative Council elections, the REO will similarly conduct a review of the polling stations after the Municipal Council elections. Any views and suggestions on the designation of polling stations will be welcomed.

The Boundary and Election Commission (BEC) has asked the REO to identify, where circumstances warrant and suitable sites are available, more polling stations for the September Legislative Council elections. The aim is to provide electors with more convenience where the expenditure of public funds is justified.

Where circumstances so require and permit, the REO will consider using temporary structures as polling stations, e.g. setting up container structures in an open space for polling. As regards mobile polling facilities, they are fraught with serious practical difficulties, not least of which are the security considerations involved. The BEC has no plan for mobile polling stations.

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Annex

District Original Polling Station Polling Station Designated after Merger Reasons for Merger

Kwun Tong 1. Kwun Tong Methodist Kindergarten, Garden Estate Kwun Tong Government Primary School, Ngau Tau Kok Road The original polling station is unsuitable as it is too small to cope with 9,000 electors, and access by the aged and the handicapped is inconvenient. The Kwun Tong Government Primary School, the polling station for another District Board Constituency (DBC), is in the proximity across Ngau Tau Kok Road. Its floor area is sufficiently large to cope with the size of the electorate after the merger.

Tsuen Wan 2. BTCFS Yeung Yat Lam Memorial School, Lei Muk Shue Estate Lei Muk Shue Community Hall, Lei Muk Shue Estate The School will be demolished in the redevelopment programme of Lei Muk Shue Estate. The polling station for the

neighbouring DBC at the Community Hall is situated nearby in the same housing estate. Its floor area is sufficiently large to cope with the size of the electorate after the merger.

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District

Original

Polling Station

Polling Station Designated after Merger

Reasons for Merger

Tuen Mun 3. Corridor of Oi Islamic Primary Experience in the

Yung House Shopping Arcade, Yau Oi Estate School, Yau Oi Estate September DB elections reveals that the polling station at the Corridor of the Shopping Arcade was unsatisfactory. The polling station for the neighbouring DBC at Islamic Primary School is situated nearby within the same housing estate. Its floor area is sufficiently large to cope with the size of the electorate after the merger.

Yuen Long 4. Pak U Middle School (old site), Hung Shui Kiu Yau Kung School, Ha Tsuen Pak U Middle School is to be redeveloped and cannot be used as polling station. No suitable alternative can be located in the vicinity. The 900 electors originally assigned to that polling station have thus been transferred to Yau Kung School, Ha Tsuen, another polling station in the same DBC.

Tai Po 5. Tai Po Public School, Kwong Fuk Estate Kwong Fuk Community Hall, Kwong Fuk Estate There was a complaint at the 1994 DB elections that the choice of the original polling station was unsatisfactory as it could be misconstrued to be associated with one interested party in the elections. The neighbouring polling station at the Community Hall is situated nearby in the same housing estate. Its floor area is

63

District

Original

Polling Station

Polling Station Designated after Merger

Sha Tin

6. Shatin Tsung Tsin Secondary School, Sun Chui Estate

YPICA Lee Ng Sui-Oi Memorial School, Sun Chui Estate

Sha Tin

7. Caritas Hiu Yau Kindergarten, Kwong Lam Court

Kwong Yuen Community Hall, Kwong Yuen Estate

Reasons for Merger

1 . •

sufficiently large to cope with the size of the electorate after the merger.

Access to Tsung Tsin Secondary School by the aged and the handicapped is inconvenient. The Lee Ng Sui-Oi Memorial School in the same housing estate which is the polling station for another DBC is more suitable. The floor area of the latter is sufficiently large to cope with the size of the electorate after the merger.

u

The Kindergarten is unsuitable as a polling station as it is too small. The polling station for the neighbouring DBC at the Kwong Yuen Community Hall is situated nearby. Its floor area is sufficiently large to cope with the size of the electorate after the merger.

End/Wednesday, March 8, 1995

64

Efforts continuing to improve recruitment and retention of nurses ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Michael Ho Mun-ka and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

Although nearly six months have elapsed since the Hospital Authority published the Manpower Indicators in respect of the nursing and allied health professionals, no measures have been put in place to achieve the targets set out in the Indicators. In this connection, will the Government inform this Council:

(a) of the purposes and objectives of the Hospital Authority in formulating such Manpower Indicators;

(b) whether the staff in the grades concerned or the public have been consulted about the Manpower Indicators; if so, what was the duration of the consultation period;

(c) whether any concrete measures and the timing for achieving the targets in the Indicators have been drawn up; if so, when the details can be announced, and how such measures will be implemented by the Hospital Authority?

Reply:

The manpower indicators promulgated by the Hospital Authority are designed to serve as a planning tool to facilitate the work of hospital managers. These indicators provide a useful benchmark against which the staffing situation in different clinical specialties could be monitored. In areas where deficiencies are identified, appropriate action would be taken to redeploy existing manpower resources or to plan for the need of additional staff.

The manpower indicators have been discussed extensively by the Medical Services Development Committee of the Hospital Authority, and were circulated to individual hospitals as well as various staff groups for consultation. Furthermore, two seminars were conducted in October 1994 to familiarise 400 frontline nurse managers with the rationale and potential application of the new indicators.

65

The manpower indicators are not meant to be prescriptive staffing ratios. Individual hospitals are already making use of these indicators to adjust their respective manpower planning and deployment strategies. The Hospital Authority Head Office has also established an expert team to assist hospital managers in reviewing and addressing their staffing situation. This exercise is expected to complete by May 1995 so that new initiatives could be incorporated into the annual business planning process.

Apart from the development and implementation of manpower indicators, the Hospital Authority will continue with its intensified efforts to improve the recruitment and retention of nursing staff at all levels. Measures have been introduced to provide a better working environment for nurses, to enhance their training and education, to streamline work processes, to reduce the frequency of night shifts, and to employ additional supporting staff to undertake non-professional duties.

End/Wednesday, March 8, 1995

Proposals on public broadcasting service being considered ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Recreation and Culture, Mr James So, in the Legislative Council A today (Wednesday):

Question:

It was originally scheduled that Cable Television would start providing, free of charge, three channels for the Government to broadcast programmes on January 1, 1995. However, the three government channels will not be available for use until 1996 because of technical problems. In this connection, will the Government inform this Council:

(a) what measures are in place to ensure that the three government channels will be made available on time;

(b) of any specific plans to use these channels; and

(c) whether one or more of these channels will be open to the public as a public service channel, so as to encourage its use by educational bodies, community organisations, students and young people; if not, why not?

66

Reply:

Mr President,

I would like, first of all, to clarify a misconception. It was never the intention that the three channels reserved for Government use on Wharf Cable’s network should be handed over to the Government on January 1, 1995. Condition 10.3.1 of Wharf Cable Limited's Initial Subscription Television Broadcasting Licence clearly states that:

"Upon not less than six months notice in writing given by the Broadcasting Authority to the Licensee to expire at any time or times throughout the period of validity of this licence after January 1, 1995, the Licensee shall, in addition to the obligations referred to in Clause 10.1, make available to Government free of charge and expense such use of not more than three channels in the basic package of programmes as may be directed by the Broadcasting Authority, subject to the availability of radio frequency spectrum during the period that the Licensee is utilising that spectrum under this licence."

Thus provision is made for the channels to be handed over any time during the validity of Wharf Cable’s 12-year licence. It follows in regard to part (a) of the question therefore, that there is no specific time-table for the Government to institute any measures to make the channels available. However, Wharf Cable do not have spare spectrum capacity at present on its MMDS system and is unlikely to have a sufficient subscriber reach on its optic fibre network to make handover worthwhile until well into 1996.

As regards parts (b) and (c) of the question, Members were informed during the motion debate on July 6, 1994 that an inter-departmental Working Group had been set up in April 1994 to examine whether and if so, how the Government should make the best use of the Government channels on Wharf Cable’s network and should explore the ideas of providing a "public broadcasting service" and/or a "public access service". The Working Group has now completed its Report and its recommendations are currently being considered within the Administration. It is intended that the outcome will be reported to Members shortly, once the Administration has taken a decision.

End/Wednesday, March 8, 1995

67

Squatter areas in HK ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Frederick Fung Kin-kee and a written reply by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council today (Wednesday):

Question:

In his 1994 Policy Address, the Governor stated that all urban squatters on Government land would be rehoused by March 1996. In this connection, will the Government inform this Council of:

(a) the names of all existing squatter areas in the territory together with the respective squatter population, their distribution on Government and private land, the estimated dates of clearance as well as the expected rehousing sites; and

(b) the squatter areas where the Housing Department has carried out improvement works under the Squatter Area Improvement (SAI) Scheme; whether any follow-up action on such improvement works has been taken; and which squatter areas have not undergone improvement works under the SAI Scheme?

./U.

Answer

Mr President,

There are about 31,200 urban squatters, of whom about 9,000 are living on Government land and the remainder on private lots. A list of urban squatter areas is at Annex 1. The Administration has pledged to clear all urban squatters on Government land before 31 March 1996. There is no plan to clear other squatters. To avoid possible abuse, it is the Housing Department's practice not to announce the location and specific Timing of squatter area clearances prior to the conduct of pre-clearance surveys. ,

I* .J

The Squatter Area Improvement Scheme covers a period of seven years between 1983 and 1990. A list of those squatter areas affected is at Annex 2. Since the completion of the programme, the Housing Department has continued to provide maintenance services for the public facilities in those areas.


68

Annex 1

List of Urban Squatter Areas

Honp Kong Island

Near Yellow Stork House, Tanner Hill Estate Nga Choi Hang

Tin Hau Temple Hill

Ma Shan, Causeway Bay

Sir Cecil's Ride

♦ Tai Hang Hill Wun Sha Street Rear of Confucious School Bowen Road Wan Chai Gap Road Kennedy Street/Road & Sik On Street Chatham Path & Tregunter Path Hatton Road

* Chu Mo Shan

Behind Tai Wah Factory Ho Jong

Tai Hau Wan Village

Sandy Bay

Tai Wan Sun Chuen Telegraph Bay Village

Near Baguio Village

* North Victoric Road Pokfulam Village Victoria Rd. Near Wah Fu Est. (Shui Choi Tin Vill. & Pok Po Wan)

Kai Lung Wan (Area opp, Hing Wai Ice Fty.) Chiu Chow Shan

* Shek Pai Wan Rd./Tin Wan Hill Hillslope behind Apleichau Main St. Pak Sha Wan, Apleichau

* Deep Ditch

Behind Aberdeen Police Station Wong Chuk Hang Path & Old Village Shouson Hill Road

Wong Chuk Hang Sun Wai Chuen Island Road side of Golf Course

J/O Repulse Bay Road & South Bay Road South Bay Road

* Headland Road

* Chung Hom Kok Rd.

Sai Wan Chai Stanley Market Nam Yeuk St. Stephen Beach, Stanley Tai Tam Village, Stanley ♦ Stanley Gap Road

Tai Tam

Tai Tam Road (West) Tai Tam Tuk Village Shek O Road Lan Nai Wan Tung Ah Pui Ngan Hang To Dai Wan (Diety Bay) Windy Gap Hok Tsui Village Nga Choi Hang (Hok Tsui) Shek O Village Big Wave Bay

Yuen Dao Ngam (Chai Wan Hill)

Sai Wan Chuen (behind Blk.19, Chai Wan E.) Sai Chuen (below Cape Collinson Road) Cape Collinson Road

Tai Hang Tung Chuen (Tai Hang Ngau & Moon Wah Lau) Tai Tam Road (East) Aldrich Village

* Hoi Shum Temple, Shaukeiwan Shan Bin Terrace Ah Kung Ngam Village

Tanner Hill Below Tin Hau Temple Road

♦ Squatter areas under clearance

- 69 -

Kowloon

Ma Pui Village

Ma Wan Village

Che Tang Village

Lei Yu Mun Village

Shung Shun Street Sea Front

* Ling Nam New Village (Lower)

Ling Nam New Village (Upper)

* Cha Kwo Ling Road (South)

Cha Kwo Ling Village

Fan Wah Street

* Kai Tin Village

Hillslope opposite Tsui Ying House, Tsui Ping E.

Kai Liu

Hillslope near Tsui Yeung Hse, Tsui Ping E.

Ma Yau Tong

Fuk Tak New Village

Fei Po Hang/Kwun Tong Industrial Area

* On Lok Village

* Sai Wo Yuen/Tai Shing Village

* Sau Ming Village

Wo Ping Village/Sau On Village

Jordan Path

Yuen Po Rd.

Fuk Wing St./Camp St.

Hillside near Block 36, Shek Kip Mei E.

Fuk Tak Temple

North Kowloon Magistracy Hillslope

* Pak Shan Village

Ho Kar Yuen

Chung Shan Village

Tsz Mei Village

New Kowloon No.8 Cemetary

Tak Mong Village

Ngau Chi Wan Village

Ha Yuen Ling (West)/

Tai Hom Village (South of Lung Cheung Road) Sheung Yuen Ling (North)

Diamond Hill New Village/

Sheung Yuen Ling (South)/

Sheung Yuen Ling (North)

* Diamond Hill New Village

* Tai Koon New Village

Chuk Yuen United Village (East)

Ngar Tsin Wai Village

Sa Po Road

Shansi Street

♦ Squatter areas under clearance.

70

Ann£X_2

Squatter Area Improvement Programme

SERIAL NO, SQUATTER AREA

5-vear programme

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Tai Shing Cheung Lung Tin I Cheung Lung Tin II Cheung Lung Tin III Cheung Lung Tin IV Ngar Choi Hang Sai Wo Yuen On Lok I On Lok II On Lok III Sau Ming I Sau Ming II Tak Mong (Jat's Incline) Fa Yuen I Fa Yuen II Nam On Fong Sheung Yat Chuen Tai Shing Extension Man Kuki Man Kok II Ma Shan I Ma Shan II Holy Cross Path I Holy Cross Path II Tai Hang Hill Shek Lei Hill 0 Pui Lung Shing On Lei Yue Mun Village Ling Nam Lower Village Ling Nam Upper Village Ma Pui & Che Tang Village Ma Wan Village Heung Yeung Fu Yung Shan Hon Man Chuen Kwong Pan Tin Lower

71

SER1ALML

38

39 .

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

SWATTER AREA

Kwong Pan Tin Upper Pak Tin Pa Aldrich Village

Ma Shan (Causeway Bay) & Lin Fa Kung

Wang Hang

Ho Jong & Smithfield Road Wong Chuk Hang Sun Wai Stanley Valley

Lion Rock Hill Village Nam Shan Mei Upper Kwu Hang Cha Kwo Ling I Cha Kwo Ling II Grandview Road Telegraph Bay I Telegraph Bay II Chuk Lam Mui Kong TaiO Ma On Shan Shatin Tau Area 6 Hang Hau Chuen Ying Pun Kam Shan Village Tai I lang l ung Shan Bin Terrace Ching Man Village

2-year extended programme

Wong Chuk I lang Path & Old Village Yuen Dao Ngam

Wo Ping

Yau Tong Lower Ngau Chi Wan 6 M. Castle Peak Road Wo Yi Hop Tso Kung Tam Tai Wor Chuen Big Wave Bay Shek O I Shek O II

72

SERIAL ML

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

SQUATTER AREA

Pokfulam Vilalge Tung Yeung Tai Hom (South) Tse Mei/Tin Liu Tsz Mei Tin Liu Sham Tseng Cheung Hang Village A Kung Ngam Village I A Kung Ngam Village II Tai Wan Sun Chuen Tai Hau Wan Village Kwong Pan Tin 4 Tai Ping I Tai Ping II Diamond New Village Kau Wah Kong Upper I Kau Wah Keng Upper II Pump Fong Sheung Chuen I Pump Fong Sheung Chuen II Lower Hon Man Village Ka Wai Man Village

Above Mt. Davis Cottage Area Behind Tung Wah Eastern Hospital Mt. Davis Road

Pak Dai Nei (East & West) Village Kai Tsui Village

Chuk Yuen United Village Kam Kuk Village Pai Min Kok Upper Village Kin Yip Tsuen Hok Tsui

Windy Gap Tung Ah Pui Shui Choi Tin Sheung Yuen Leng Nam Shan Village Ho Kar Yuen Ha Kwai Chung Yue Shan Yuen Butterfly Valley Yau Kam Tau. Tsing Yi

End/Wednesday, March 8, 1995

73

Assessment of academic qualifications of civil service recruits ♦ ♦ ♦ ♦ *

Following is a question by the Hon James Tien Pei-chun and a written reply by the Secretary for the Civil Service, Mr Michael Sze, in the Legislative Council today (Wednesday):

Question :

'['he Secretary for the Civil Service has pointed out that reference to British and Commonwealth qualifications will not be mentioned in civil service recruitments in the future, and that a committee will be established to discuss the assessment of academic qualifications. In this connection, will the Government inform this Council of:

(a) the estimated number of persons holding non-British and Commonwealth university degrees who will benefit every year as a result of this change; and

(b) the criteria which the Government will adopt to assess the acceptability of degree programmes of non-British and Commonwealth universities for recruitment purposes; and how the applications of individual candidates will be appraised?

Reply :

Mr President.

My reply to the two questions are as follows :

(a) it is not possible to give any meaningful estimate of the number likely to benefit from our plans to widen recognition of degrees obtained from tertiary institutions in non-English speaking countries. I do not expect the number to be large, at least in the foreseeable future. We are after all talking about Hong Kong students. Given our substantial and steadily expanding tertiary sector most choose to study here. By comparison, the number who have .obtained qualifications or are currently studying abroad is small, and mostly relate to North America, Britain and other English-speaking countries. Very few have chosen to go to universities in non-English speaking countries. With the impending change in sovereignty and rising standards of tertiary education in the region we can expect the number to grow. It is for this reason that we plan to strengthen the vetting of non-Hong Kong qualifications.

74

(b) The second question relates closely to the first, because it asks about the criteria which will be used to assess non-Hong Kong qualifications for the purposes of civil service recruitment. These will to some extent govern the numbers likely to benefit from the revisions to our system. The tougher the criteria the fewer will benefit. And 1 have to say, that the criteria will be tough. They are simply stated; namely, that Civil Service Branch must be absolutely satisfied that the qualifications in question are at least as good as the comparable Hong Kong qualifications, for the purposes of recruitment to the civil service. If we arc in any doubt wc will err on the side of caution. To help us in our examination we will draw on the advice of the Hong Kong Council for Academic Accreditation who have information and sources of further information on courses run by non-Hong Kong institutions. Assessments will be made on a case-by-case basis, and will have regard for the standing of the institution in question and of the authority accrediting its degree programmes; the entry requirements to the course; and the content and duration of the course.

I should add, Mr President, that the entry qualification requirements are only the first step in the recruitment process. Eligible candidates must meet other requirements, including language requirements in many grades, and passing a selection interview.

End/Wednesday, March 8, 1995

Occupancy rate of HK Industrial Technology Centre *****

Following is a question by Dr the Hon Huang Chen-ya and a written reply by the Secretary for Trade and Industry, Mr T I I Chau, in the Legislative Council today (Wednesday):

Question:

The Hong Kong Industrial Technology Centre was opened in August 1994, but the occupancy rate of the 80 offices available for leasing up to now is very low. In view of this, will the Government inform this Council :

(a) how the Centre is going to attract more tenants to lease its offices;

75

(b) of the current occupancy rate of offices of the Hong Kong Productivity

Council (HKPC) which similarly has offices for leasing; and

(c) whether there is a duplication in the provision of such leasing services by the Centre and the HKPC; if not, what is the difference between the services provided by these two organisations?

Answer

The Hong Kong Industrial Technology Centre Corporation does not anticipate any difficulty in attracting sufficient tenants to fill the Centre. Since fitting-out was completed in November 1994, 74% of the leasable area (18,916 m2) has been committed to tenants. A commercial letting agent is promoting the Centre to potential tenants' through direct mailing, features and advertisements in newspapers and journals. Space in the incubator units is being offered at a 70% rebate for the first year, and attractive discounts for the following two years. Other space is being offered at competitive market prices.

. a •%. . . ■ * .

As regards the Hong Kong Productivity Council, in February 1995, 83% of the leasable space (3,386 m2) in the Council's building was let to tenants.

' • ' 1 < 1 9 \ •

There is no duplication in the services provided by the Council and the Centre. Additional space was provided in the Council's building to provide room for future expansion of its services. Some of this space has already been taken up by the Council. The Council has let the space which is not required for the time being to a variety of companies in order to generate rental income. The Council does not provide special services to its tenants. In contrast, the Centre is intended specifically to nurture the growth of technology-based companies, which it does by providing a range of support services, including technology transfer and laboratory facilities.

■’ - ««»uT K. .. . . ..

End/Wednesday, March 8, 1995


76

Site for new China ferry terminal being identified ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

At present the Hong Kong - China Ferry Terminal at China Hong Kong City is heavily used, and because of staff shortage, frequent disruptions to the scheduled passenger ferry services have arisen resulting in discontent among passengers. In view of this, will the Government inform this Council:

(a) of the number of scheduled ferry services that have been delayed in the past year;

(b) whether there is any plan to increase the number of staff so as to improve the present situation; if so, when the increase will be effected and what the number of additional staff will be; if not, why not; and

(c) Whether consideration will be given to the construction of new Hong Kong - China ferry terminals in other locations as a long term measure to ease the pressure at the China Hong Kong City terminal; if so, what the specific plans are; if not, why not?

Reply:

Mr President,

(a) In 1994, the berthing of about 27,000 vessels was delayed for more than five minutes at the Hong Kong - China Ferry Terminal, representing 36 per cent of the total trips in that year. The delays were due to ferries arriving either earlier or later than was scheduled, and therefore missing their allotted berthing slots. This happened mostly during the peak morning and evening hours when the berths were fully occupied.

The situation is expected to improve in October this year, when three new berths for high speed ferries will be completed.

77

(b) The Immigration Department will provide seven additional staff in 1995-96 to help speed up the processing of passengers at the ferry terminal. The Customs and Excise Department has adequate staff for the time being.

(c) The existing China Ferry Terminal is expected to reach capacity by 2001. An inter-departmental working group under the Planning Department is now identifying a suitable site for a new terminal, for completion before that date.

End/Wednesday. March 8, 1995

Finances of Institute of Education alid Academy for Performing Arts *****

Following is a question by the I Ion limoth) I la Wing-ho and a written reply b\ the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

As the Hong Kong Academy for Performing Arts and the Hong Kong Institute of Education now offer degree-level courses to local students, will the Government inform this Council whether :

(a) it is aware of the present source of finances, arrangements for allocation of funds and monitoring mechanism in the two institutions: how do the relevant authorities monitor their operations:

(b) there are any plans to put the two institutions under the aegis of the University Grants Committee: if so. what the details arc and what the progress has been made so far: if not, why not: and

(c) it is aware of the respective estimated and actual expenditures of the two institutions in each of the past three years, as well as their budgets for the next financial year ?

78

Reply:

Mr President,

(a) The Hong Kong Academy for Performing Arts' (HKAPA) major source of funding is Government subvention, which amounts to about 85% of its recurrent income each year. This is supplemented by tuition fees and bank interest. The Academy also receives rental and box office commission from hirers of its venues for the management and maintenance of venues and private donations for scholarships. The Academy maintains a five-year forecast which is annually updated to take into account the actual amount of subvention approved by Government and the needs of the Academy. Each year, the Academy’s internal Resource Allocation Committee will consider the proposed budgets of individual Schobls/Departments and make recommendations to the Director on the priority of proposed developments. The estimates will then be submitted to the Council of the Academy, which is the governing and executive body for the Academy, for approval. The Government monitors the Academy’s operation through various means. Under the HKAPA Ordinance, the Academy is required to submit to Government a programme of proposed activities and estimates of income and expenditure, the latter of which will be closely scrutinised by relevant Government departments. Within six months after the end of each financial year, the Academy is required to submit to the Governor a report on the activities of the Academy and copies of financial statements and the auditors' report. The documents will then be tabled at the Legislative Council meeting. In addition to the above, the Secretary for Recreation and Culture, by virtue of being a member of the HKAPA Council, monitors the financial matters of the Academy.

79

The Hong Kong Institute of Education (HKIEd) plans to launch its first degree course in 1997-98. Its major source of funding is Government subvention. Over 93% of the recurrent expenditure and all the capital expenditure of the Institute are funded by Government. Other sources of income include tuition fees and interest from bank deposits. The HKIEd is required each year to prepare a programme of proposed activities for the following three years and based on that, the estimates of income and expenditure for the coming year and the forecasts for the subsequent two years. These documents are then submitted to the Secretary for Education and Manpower (SEM) who is the Vote Controller of the Institute for scrutiny and approval. To monitor the operation of the HKIEd, the Institute is required to submit to SEM monthly financial statements. It is also required to carry out a mid-year review of its activities and financial situation and report to SEM the results. The HKIEd is required, under its ordinance, to submit to the Governor a report on its activities and copies of the financial statements and the auditors' report not later than six months after the end of each financial year and such reports and statements will be tabled at the Legislative Council thereafter. SEM is also represented at the Standing Committee under the Governing Council of the Institute and its sub-committees on staffing, estates and campus development in order to monitor the operation of the Institute.

(b) There are no plans to bring the HKAPA under the aegis of the University Grants Committee (UGC). This is because the nature of the Academy is not so much an academic tertiary institution but rather, a special vocational training institution to train students for careers in the performing arts fields. As regards the HKIEd, the Administration has initiated discussions with the UGC and the Institute with a view to bringing the HKIEd under the aegis of the UGC. The precise arrangements and timing have yet to be worked out. but all parties concerned have agreed in principle to bringing the HKIEd into the UGC system as soon as practicable.

(c) The estimated and actual recurrent and capital expenditure of the HKAPA in each of the past three years and the budget for the coming financial year are in the Annex. As for the HKIEd. it was established only in April 1994 and took over the operation of the Colleges of Education and the Institute of Language in Education on September 1, 1994. The estimated recurrent and capital expenditure for the Institute for 1994-95 and projected expenditure for 1995-96 are also in the Annex.

80

Annex

Estimated and Actual Recurrent and Capital Expenditure of HKAPA in 1992-95 and Projected Expenditure in 1995-96

Estimated Expenditure Sm Actual Expenditure $m

1992-93 99.4 103.1

1993-94 118.6 125.0

1994-95 138,8 146.4 (Revised

1995-96 155.3 Estimate)

Estimated Recurrent and Capital Expenditure for HKIEd in 1994-96

1994-95

1995-96

Sm

339.7* (Revised Estimate)

1,073.22

Note

This amount includes amongst other items, only seven months’ expenditure for the salaries and on-cost of the campus staff.

2 This amount includes $429.0 million for the campus development at Tai Po.

End/Wednesday, March 8, 1995

81

LegCo passes motion on retirement protection system

*****

The Legislative Council today (Wednesday) passed by 28 votes to 21 a motion put forward by the Secretary for Education and Manpower, Mr Michael Leung, calling on the Government to introduce as expeditiously as possible a mandatory, privately managed occupational retirement protection system.

The Hon Jimmy McGregor's amendment to the above motion was defeated by 24 votes to six. The Hon Michael Ho moved a motion to adjourn the debate, but his motion was voted down by 31 to 18 votes.

The Council also debated and passed a motion moved by Dr the Hon Yeung Sum. The motion urged the Government to implement the Old Age Pension Scheme as soon as possible and expressed strong dissatisfaction at the Government for shelving the Scheme. The motion also called for the Government to put into immediate effect the increase of the Comprehensive Social Security Assistance payments for the elderly.

The amendment moved by Dr the Hon K C Lam to this motion was voted down.

Meanwhile, a private member's motion moved by the Hon Albert Chan regarding rehousing of rooftop structure occupants was carried.

A motion on the Public Finance Ordinance put forward by the Secretary for the Treasury, Mr Donald Tsang, was also passed.

In addition, three bills were introduced for first and second readings. Debates on them were adjourned. The bills were the Tai Lam Tunnel and Yuen Long Approach Road Bill, the Credit Unions (Amendment) Bill 1995 and the Gas Safety (Amendment) Bill 1995.

End/Wednesday, March 8, 1995

DAILY INFORMATION BULLETIN

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

Thursday, March 9,1995

Contents Page No,

Transcript of Governor's media session.......................... 1

Overwhelming support from parents to TOC initiative............. 5

Improvement measures adopted in schools......................... 7

Smoking is not allowed in classrooms............................ 9

Volume and price movements of external trade in Dec............. 9

HA reaches out to elderly through community medical teams... 16

HK shares experiences on CITES implementation.................. 18

Safety first on construction sites............................. 20

1000-Day Regiment takes the field.............................. 21

Social Welfare Department awards subvention review contract. 22

Applications invited for visual arts development projects...... 23

Public urged to support heritage preservation.................. 25

Immigration investigators catch 51 illegal workers............. 27

Weakened water supply to Tsuen Wan on Saturday................. 28

Hong Kong Monetary Authority money market operations........ 28

1

Transcript of Governor's media session *****

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, on his arrival at the airport from Singapore:

Governor: I've had a short but interesting visit to Singapore. I spoke at a conference organised on world economic issues by Fortune magazine. Other speakers were the Prime Ministers of Pakistan and Singapore, Dick Cheney, the former Secretary for Defence in the American Administration, Lady Thatcher, the Senior Minister of Singapore and a number of business leaders including business leaders from Hong Kong like Gordon Wu and Richard Li. It's a good conference and I think you would have seen copies of my speech. I've also had meetings with Singaporean governmental leaders and business leaders, most notably the Prime Minister, the Deputy Prime Minister, the Foreign Minister, the Finance Minister and the Senior Minister, Mr Lee Kuan Yew, who I was pleased to have 55 minutes with this afternoon. So it's been a pretty full programme and I am pleased to be back.

Question: Did you take up the case of Daniel Chan who is ... making personal appeals ?

Governor: I referred in my conversations with the Prime Minister to a number of appeals for clemency with which we dissociated ourselves. In the case of Mr Chan, there was an appeal from the British Government with which I and the Hong Kong Government associated ourselves. And then there was a further demarche by the further appeal by the European Union with which we again associated ourselves and I referred to those matters in my conversation with the Prime Minister but obviously in the Singapore system, it's a matter for the President rather than for him.

Question: Governor, would you please correct me if I'm... what you said in the previous question time in the Legco, you mentioned that you don't cross out the possibility to implement the Old Age Pensions scheme so far as there are sufficient support in Legco. So what do you think about last night's debate ?

2

Governor: Well I think what I said this morning in Singapore and what the Chief Secretary said yesterday and what Jackie Willis said this afternoon, yesterday there were a number of debates in the Legislative Council, during the course of which, the Legislative Council voted by quite a substantial margin for an MPF, and then later on, voted by a small margin for an Old Age Pension Scheme, not I think entirely the one we had in mind, plus a substantial and immediate increase in CSSA rates. So the Government in those circumstances has to decide what is the best way forward and where the largest degree of support is. And I think you would agree that the whole community would think we are taking leave of our senses, if we try to follow both courses of action. We have to make a choice and I think it is reasonable to base that choice both on the size of the votes in the Legislative Council and on what we understand is the view of the business community and others. It's not an easy choice, but I think your newspaper and other newspapers are urging the Government to get on with the issue and not just to put it off. You could make out a case in these circumstances, for the Government thinking well. The community's been talking about this for 30 years, maybe we should talk about it for another 30 years. But I don't myself think that that would be responsible. I think the community expects us to act. In trying to implement an MPF, and you've heard what Jackie said this afternoon about the consultancy study and the timing of that, we have to recognise that there is an argument raised about problems faced by some elderly people in need today. In other words, the whole question of CSSA rates and benefit levels comes up. And we've made it clear that we think that should be considered as part of the overall review that we are doing of CSSAs, based, for instance, on the household expenditure survey which we are doing during the year. So I think that is a rational and responsible way forward. I think that most people would hope that we would be as decisive as possible on the basis of the scheme which appeared to have the broadest community support. So that is our position and it will be for others to explain how the Legislative Council was able to vote in so many different and not entirely mutually agreeing fashions.

Question: Looking at the MPF, the SAR Government would not bear responsibility for the MPF unless the Government .....with China ... the issue.

Governor: Well, we'll look forward to discussing it through the JLG. It's never been any doubt about that.

3

Governor: Did you hear the answer that I also gave at patient length to Carrie. I'm not sure what I can add to what I said to Carrie.

Question: (inaudible)

Governor: Are you seriously suggesting that we should do both, that we should introduce a mandatory provident fund and an old age pension ?

Question: Some of the opinions said you can..

Governor: Is that your paper's view ?

Question: No.

Governor: Heavens above. I wouldn't have thought so. I think if I suggested that, there would be quite a lot people in the community who would suggest that I should be swiftly attended by man in white ...

Question: I didn't hear the question quite clear. But your answer said, are you looking forward to discussing the pension scheme with China through the JLG ?

Governor: Yes. U, ....

Question: Has the government informed China of the latest proposal though?

Governor: No, but we will be. Now that we have had vote in the Legislative Council and we'll be telling them all about the work that we are going to do with the consultants.

Question: Would they be informed before the review was passed on to Legco ?

Governor: No, but I imagine that since they are so widely informed that they've been reading the newspapers just as we have.

Question: But NCNA today refused to comment on the latest...

4

Governor: That seems to me to be, to show characteristic wise restraint on their part.

Question: Do you think this lack of details about the proposal, so when do you think it...

Governor: The NCNA won't be negotiating with us in the JLG, unless they change their JLG team. But I'm sure that those who do discuss the issue in the JLG will welcome the amount of comprehensive detail we give them.

Question: What I am asking is, what do you think is the appropriate time to discuss with the Chinese ? Should that wait after the consultancy's report that is the end of April ?

Governor: No, we will want the next JLG meeting, whenever it takes place and I hope that it may take place though we haven't yet agreed dates before the date you've suggested, whenever the JLG takes place, we will want to make sure that the Chinese are well informed about what we believe is the sensible approach and the right way forward. You know as I do, and it's a point that I have made again and again, not least in relation to the old age pension scheme that since we're talking about the future by definition, since we're talking about pensions, or welfare benefits that we will pay after 1997, it is entirely proper to talk to Chinese officials about these matters since at present they seek to represent the future interest of the SAR. One last question.

Question: Going back to my question about Mr Chan who's behind in Singapore .... Do you take it that your request has been rejected by the government of Singapore ?

Governor: I think you can take it that I didn't receive any indication that the position of the President changed. What we have done in every case whether it's Singapore or Thailand or other cases is always behaved in exactly the same way, associating ourselves with appeals which are lodged through the United Kingdom government and most recently which are supported by a demarche from the European Union.

s

Question: In your speech delivered in Singapore without specific reference to this Singaporean government but you seem making a comment and criticism about it ?

Governor: No, I have made a speech, I thought it was quite an interesting speech about Hong Kong and about the importance of the rule of law in Hong Kong, There were actually references to Singapore I recall referring to the successful management of the Singapore economy and to the extent to which people in Hong Kong regarded Singapore as a yardstick against which to match our own achievements I think most people would regard those as complimentary references I made it clear when I was asked at my press conference that when people talked about alleged differences in values between Asia and Europe and North America, I don't usually agree but maybe there is one different value and if so, it's that I with my background don't think it's appropriate to go to other countries and criticise them Other Asian leaders may take a different view

End/Thursday, March 9, 1995

Overwhelming support from parents to TOC initiative

*****

Parents have come out in clear support of the Government's Target Oriented Curriculum (TOC) initiative, with more than 80 per cent of parents in a post-seminar evaluation saying that the curriculum should be implemented and that they will let their children study in TOC schools

The curriculum, which sets clear targets, brings in stimulating approaches for more lively and effective teaching and learning and comprehensive report to parents, is designed to improve the quality of education in Hong Kong and to address some identified problems in the system.

A total of 6,303 parents of Kindergarten 3 pupils attended 83 TOC seminars organised by the Education Department at 14 different locations throughout the territory on March 4 and ' A questionnaire survey collected 5.486 replies from the participants

6

Of the 5,486 respondents, 4,464 said they believed that TOC should be implemented in Hong Kong. These parents made up 81.4 per cent of the respondents. A total of 767 (14%) parents were neutral and 94 (1.7%) did not agree; 161 (2.9%) did not respond.

A total of 4,778 (87.1%) considered that the concepts of TOC are good and 500 (9.1%) were neutral, while only 81 (1.5%) did not agree. A total of 127 (2.3%) did not respond to this item.

In addition, 4,866 (88.7 per cent) said TOC would let parents better understand the progress of their children in learning and thus help them coach their children. A total of 389 (7.1%) were neutral and only 98 (1.8%) disagreed; 133 (2.4%) did not make any response.

A total of 4,589 (83.7%) said they would let their children study in a TOC school. A total of 620 (11.3%) were neutral and 133 (2.4%) disagreed; 144 (2.6%) did not respond to this item.

A breakdown of the figures show that the "yes" replies to this question are geographically rather evenly distributed when expressed in percentages against district totals.

Among the "yes" replies, 347 are in Central and Western (85.3%); 493 in Wan Chai (94.3%); 171 in Yau Ma Tei (82.6%); 344 in Kwun Tong (79.6%); 415 in Kwai Tsing (78.8%); 229 in Sha Tin (79.8%); 462 in Kowloon City (82.4%); 441 in Mong Kok (79.3%); 405 in Hong Kong East (88.4%); 343 in Tuen Mun (86.2%); 370 in Yuen Long (82.2%); 321 in Tai Po (84%); and 248 in Sai Kung (83.2%).

In all, 4,930 parents (89.9%) said the seminar had enhanced their understanding of the new curriculum. A total of 400 (7.29%) were neutral and 56 (1.02%) disagreed; 100 (1.8%) did not respond to this item.

Meanwhile, more than 20,000 leaflets and pamphlets have so far been distributed at the Education Department TOC roving exhibition at Cityplaza, Lok Fu Shopping Centre and Sha Tin New Town Plaza; a large percentage of the visitors were parents.

7

The roving exhibition will continue tomorrow (Friday) and Saturday at Level 2, Metroplaza opposite Kwai Fong MTR Station and, on Sunday and Monday (March 12 and 13), at Yuen Long Plaza.

End/Thursday, March 9, 1995

Improvement measures adopted in schools

*****

In response to press enquiries concerning findings of a survey released by the Professional Teachers' Union, a spokesman for the Education Department said today (Thursday) that improvement measures in schools had been introduced since the publication of Education Commission reports.

"On the issue of teacher/student ratio, additional teachers are provided. In primary schools, the teacher/class ratio is being improved from 1.2:1 to 1.3:1 for bi-sessional classes and to 1.4:1 for whole-day classes.

"In secondary schools, additional teachers are provided to strengthen remedial teaching, pupil counselling, extra-curricular activities, language teaching and split-class teaching," the spokesman said.

He added that starting from September 1993, class size was being reduced by five places. The reduction started with Primary 1 and was extending upwards by one level each year.

"Comprehensive programmes are in place to assist pupils of lower ability. This, in turn, helps to reduce the workload of, and the pressure on, teachers," he added.

The spokesman pointed out that additional resources such as improvement to clerical establishment and provision of modem office equipment (including adequate computer facilities) were also given to reduce the non-teaching duties of teachers.

8

He noted that the promotion prospects of teachers had also been improved. They included:

creation of two posts of Principal Graduate Master in a secondary school with 15 or more classes to be offset by an equivalent number of Senior Graduate Master posts with effect from September 1991;

* upgrading of one Senior Assistant Master post in a secondary school with 24 or more classes to Principal Assistant Master with effect from September 1991;

* upgrading of a maximum of two non-graduate posts in each secondary school to the graduate level and of a Graduate Master post to the Senior Graduate Master post in a school with 15 or more classes in September 1994; and

* for primary schools, an improved senior teacher ratio from one Assistant Master (AM) for every four whole-day classes to one AM for every three whole-day classes and the upgrading of primary school teaching posts to graduate level by phases.

Turning to the provision of support service, the spokesman said a series of services were made available to teachers to enhance their skills in managing stress and difficulties.

They included a helpline service for school teachers, support at the Guidance Teacher Resource Centre, regional teachers' development sessions and Saturday Clinic Sessions for teachers at district education offices.

"In addition, the Education Department will join hands with the Hong Kong Medical Association to organise a stress management seminar for teachers in early May," the spokesman concluded.

End/Thursday, March 9, 1995

9

Smoking is not allowed in classrooms *****

In response to press enquiries in connection with a survey on "Stop Smoking in Schools", a spokesman for the Education Department said today (Thursday):

"Section 51 of the Education Regulations stipulates that no smoking should be permitted in any classrooms during school hours.

"School authorities have been reminded about this regulation through an annual school circular. School heads are advised that their staff should avoid smoking during public appearances, and observe smoking bans and display of 'No Smoking' signs.

"In addition, their staff are requested to co- operate and refrain from smoking in schools, particularly to refrain from smoking in front of students.

"The Education Department will in the near future issue a reminder to draw the attention of school authorities to the importance of supporting the anti-smoking campaign."

End/Thursday, March 9, 1995

Volume and price movements of external trade in Dec

* * * * *

The volume of re-exports for the whole year of 1994 increased by 14%, while the volume of domestic exports decreased by 2.3%, according to statistics released today (Thursday) by the Census and Statistics Department. Taking re-exports and domestic exports together, the volume of total exports increased by 10%. Meanwhile, imports increased by 14% in volume.

10

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 re-exports and domestic exports increased by 1.5% and 1.6% respectively. Import prices increased by 2.8%.

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 1.3% in 1994.

Comparing December 1994 with December 1993, the volume of reexports increased by 8.1%, while that of domestic exports decreased by 4.6%. Taken together, the volume of total exports increased by 5.3%. Meanwhile, the volume of imports grew by 10%.

Over the same period of comparison, the prices of re-exports and domestic exports increased by 3.6% and 2.0% respectively. Import prices increased by 5.4%.

The changes in the value, unit value and volume of re-exports by end-use category are shown in Table 1.

Comparing December 1994 with December 1993, the volume of reexports of all end-use categories recorded increases of various magnitudes: foodstuffs (+36%), fuels (+17%), raw materials and semi-manufactures (+14%), capital goods (+9.1%) and consumer goods (+3.3%).

Over the same period of comparison, increases in the prices of re-exports were noted of raw materials and semi-manufactures (+6.4%), foodstuffs (+3.3%), consumer goods (+2.8%) and capital goods (+2.7%). The prices of reexports of fuels however decreased by 2.6%.

The changes in the value, unit value and volume of domestic exports by principal commodity group are shown in Table 2.

- 11 -

Comparing December 1994 with December 1993, commodity groups that recorded increases in volume of domestic exports included textile made-ups and related articles (+55%), and watches and clocks (+19%).

On the other hand, the volume of domestic exports of radios of all kinds and footwear decreased by 58% and 41% respectively.

Commodity groups that recorded increases in domestic export prices included textile made-ups and related articles (+13%), and textile yam and thread (+10%).

On the other hand, the domestic export price of footwear decreased by 6.3%.

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 14% in December 1994 compared with December 1993.

Significant increases were recorded in the import volume of soya bean oil, peanut oil, vegetable oil and lard; and meat and meat preparations. However, decreases in the import volume were noted of rice, live poultry and animals of the bovine species.

Over the same period of comparison, the import volume of consumer goods increased by 6.7%.

Commodity items with considerable increases in import volume included alcoholic beverages and passenger motor car. On the other hand, decreases in the import volume were noted of tobacco manufactures and clothing. The import volume of raw materials and semi-manufactures increased by 15% in December 1994 compared with December 1993.

Significant increases in import volume were noted of raw cotton and man-made fibres. However, the import volume of silk fabrics and woven cotton fabrics declined.

12

Imports of fuels increased by 6.1% in volume in December 1994 compared with December 1993.

As regards capital goods, the import volume increased by 9.0% in December 1994 over December 1993.

Notable increases were recorded in the import volume of electrical machinery and office machines. The import volume of transport equipment and textile machinery however declined.

Comparing December 1994 with December 1993, the import prices of most end-use categories increased: raw materials and semi-manufactures (+8.1%), foodstuffs (+5.8%), consumer goods (+4.8%) and capital goods (+3.0%). The import prices of fuels however decreased by 1.7%.

Details of the statistics are published in the December 1994 issue of the "Hong Kong Trade Index Numbers".

The report will be on sale around March 13 at $9 a copy at the Government Publications Centre on the ground floor, Low Block, Queensway Government Offices, 66 Queensway; or at 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 the report may be directed to the Information Services Department at French Mission Building, 1 Battery Path, Hong Kong (telephone 2842 8802) and enquiries on trade indices to the Census and Statistics Department (telephone 2582 4918).

End/Thursday, March 9, 1995

Table 1 : Changes in re-exports by end-use category

Comparing DEC 1994 Comparing JAN-DEC 1994 with DEC 1993 with JAN-DEC 1993

■ End-use category % changes % changes

Value Unit Value Volume Value Unit Value Volume

Foodstuffs 39.0 3.3 36.3 23.7 2.3 21.7

Consumer goods 5.6 2.8 3.3 11.4 1.5 9.7

Raw materials and semi-manufactures 21.4 6.4 13.7 23.0 1.3 21.3

Fuels 16.7 -2.6 17.4 6.1 -9.0 14.3

Capital goods 9.2 2.7 9.1 14.6 2.0 13.5

ALL COMMODITIES 11.2 3.6 8.1 15.2 1.5 13.8

i

14

Table 2 : Changes in domestic exports by principal commodity group

Comparing DEC 1994 Comparing JAN-DEC 1994 with DEC 1993 with JAN-DEC 1993

Commodity group % changes % changes

Value Unit Value Volume Value Unit Value Volume

Clothing * 2.8 -3.1 1.7 2.2 -0.2

Textile fabrics -8.5 3.0 -11.3 -8.3 -1.1 -7.4

Textile yarn and thread 6.9 10.0 -2.0 0.4 2.0 -0.8

Textile made-ups and related articles 78.1 12.7 54.7 22.8 6.7 12.7

Radios of all kinds -61.6 2.1 -58.5 -58.9 0.9 -57.5

Electronic components -1.2 4.0 -4.6 6.6 3.0 2.9

Footwear -41.3 -6.3 -40.6 -24.2 -4.3 -23.8

Metal manufactures -12.8 2.4 -14.6 -1.7 2.2 -1.8

Metal ores and scrap 23.1 7.2 9.4 2.9 1.2 -1.0

Watches and clocks 23.1 2.8 19.2 0.3 1.9 -1.3

Travel goods, handbags and similar articles 6.8 3.4 4.4 -3.0 3.2 -5.4

Domestic electrical appliances -24.7 -0.8 -24.5 -13.7 1.5 -17.1

ALL COMMODITIES -2.2 2.0 -4.6 -0.4 1.6 -2.3

less than 0.05%

Table 3 : Changes in imports by end-use category

Comparing DEC 1994 with DEC 1993 Comparing JAN-DEC 1994 with JAN-DEC 1993 % changes

End-use category % changes

Value Unit Value Volume Value Unit Value Volume

Foodstuffs 19.4 5.8 13.5 18.5 1.8 16.7

Consumer goods 11.7 4.8 6.7 13.0 3.1 10.9

Raw materials and semi-manufactures 24.8 8.1 15.2 21.6 3.7 16.8

Fuels 7.1 -1.7 6.1 23.4 -12.8 39.5

Capital goods 11.2 3.0 9.0 14.7 2.2 12.5

ALL COMMODITIES 16.2 5.4 10.4 16.7 2.8 14.0

End/Thursday, March 9, 1995

16

HA reaches out to elderly through community medical teams * * * * *

Two Deputy Secretaries for Health and Welfare, Mrs Shelley Lau and Mr Robert Wilson, today (Thursday) joined the Community Geriatric Assessment Team of Kwong Wah Hospital in their visit to Chi Lin Care and Attention Home in Diamond Hill to see for themselves how the Hospital Authority provides reaching-out services direct to elderly persons in residential institutions.

"Mr Wilson and I have started working closely together to monitor the implementation of the 71 recommendations of the Working Group on Care for the Elderly. This represents the new integrated approach Government has adopted in providing health care and welfare services for the elderly," Mrs Lau said.

The Kwong Wah Hospital's Community Geriatric Assessment Team, which is headed by a Consultant Geriatrician, Dr Chan Ming-hung, is one of the five teams now operating under the Hospital Authority to provide out-reach medical services to senior citizens requiring regular health care services but do not need hospitalisation.

Members of the team include doctors, nurses, social workers and allied health professionals.

During the visit, Mrs Lau and Mr Wilson learned that the service had been very successful and was welcomed by elderly persons. They also learned that the Hospital Authority had plans to establish three more teams in the coming year to provide more comprehensive coverage to elderly persons in the community.

Accompanied by the Deputy Director (Operations and Service Development) of the Hospital Authority, Dr Dickson Chang, Mrs Lau and Mr Wilson first observed how elderly persons were assessed by the Community Geriatric Assessment Team.

17

They later joined the elderly in the Physiotherapy Unit to see how they received the treatment that would help them restore or maintain physical ability.

Dr Chang explained to Mrs Lau and Mr Wilson that the community geriatric assessment service was first introduced by the Hospital Authority in 1993/94 to meet the growing demand for social and medical services of the increasing elderly population in the community.

"The teams pay regular visits to elderly homes to do medical assessment and follow-up. This will facilitate the continuity of care, provide timely diagnosis, evaluation and treatment of the health problems, and contribute to secondary and tertiary prevention to improve the functional status and quality of life for the elderly."

Dr Chang pointed out that the Hospital Authority was committed to developing these community-based assessment teams with the objectives to improve the health of elderly persons and to decrease the number of elderly persons requiring hospitalisation.

At present, more than 14,000 elderly persons reside in such institutions run by non-government organisations.

"Such teams are able to improve significantly the physical and cognitive functions of the elderly.

"Take the Chi Lin Care and Attention Home as an example. In quantitative terms, the monthly average out-patient attendance of residents of the home has dropped by 4.8 times, accident and emergency attendance by 100 per cent and hospital admissions by 37.6 per cent," Dr Chang said.

"The health care professionals of the teams provide expert and timely assessment of both the high-risk elderly and their home environment through domiciliary visits with a view to providing early treatment of medical conditions and reducing the incidence of falls and fractures.


- 18 -

"They also give specialist advice and education programmes to the general public and other health care providers on the knowledge and skills required in the care of the elderly."

These teams therefore can promote better interface between medical and welfare facilities by providing specialist support in the form of medical/nursing care and rehabilitation service for elderly persons in residential homes.

At present, the five Community Geriatric Assessment Teams under the Hospital Authority are able to serve more than 6,500 elderly persons a year. With the setting up of three more teams in 1995/96, care will be provided to an additional 4,900 persons each year.

As recommended by the working group, these teams will extend their services to non- residential setting and take referrals from home help teams, social centres, day care centres and other social service units.

End/Thursday, March 9, 1995

HK shares experiences on CITES implementation *****

A Conservation Officer of the Agriculture and Fisheries Department, Dr So Ping-man, today (Thursday) shared Hong Kong's experiences on implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) at a seminar in Seoul.

Jointly organised by the Ministry of Environment of Korea and the TRAFFIC East Asia, the seminar on international trade of wild fauna and flora was participated by about 120 experts, Korean medicinal specialist and representatives from Korean Management and Scientific Authorities.

The primary objective of the seminar was to strengthen awareness of controls over the trade of endangered species, especially among traders, medicinal specialists, traditional doctors and relevant government officials.

19

The seminar placed its focus on improving the effectiveness of CITES implementation; protection of endangered species among oriental medicinal specialists and controlling illegal trade and reinforcing customs inspections.

Speaking at the seminar, Dr So pointed out that Hong Kong had for many years been fully committed to the implementation of CITES. It had one of the strictest legislation in the region.

He said in support of international concern over the use of endangered species, especially rhino and tiger ingredients, in traditional Chinese medicines, the Hong Kong Government had stepped up controls last year.

Apart from prohibiting the import and export of rhino and tiger parts, Hong Kong's legislation also prohibited the possession and trading of medicine containing or claiming to contain rhino or tiger ingredients.

On the enforcement side, an Endangered Species Protection Liaison Group was set up in late 1993 to co-ordinate enforcement actions of the Customs, Police and the Agriculture and Fisheries Department.

Last year, there were a total of 557 successful prosecutions under the Animals and Plants (Protection of Endangered Species) Ordinance, resulting in a total fine of $ 1.4 million.

The levels of penalties for such offences had also been sharply increased early this year to reflect the seriousness Hong Kong attached to this kind of offences.

People who illegally trade in highly endangered species will now have to face a maximum penalty of a $5 million fine and imprisonment for two years.

Dr So was glad to share his experiences on Hong Kong's implementation of CITES with the participants at the seminar, stressing that co- operation in the region was vital in stamping out such illegal trade.

End/Thursday, March 9, 1995

20

Safety first on construction sites *****

The Chief Factory Inspector of the Labour Department, Mr Chan Talking, today (Thursday) reminded building contractors of the importance of taking proactive safety precautions before the commencement of any construction works, even though they were having a hectic construction schedule.

Mr Chan said proper design and plan for safety should be incorporated into construction processes, particularly those having an inherent hazardous nature.

He advised contractors of the following salient points in preparing safety plans for work processes:

* identify and assess the risks involved;

* devise a safe system of work;

* prepare a method statement for the work;

* properly brief all workers engaged in the work; and

* assign a competent person to supervise the work.

"For more complex work processes, such as the use of heavy machinery's or sophisticated methods of construction, a qualified engineer should be assigned to assume overall supervision instead of leaving it simply to a chargehand or just a hand- pick from among the team of workers," Mr Chan said.

"Whenever foreign workers are involved, they have to be trained, instructed and informed of the work procedures in their language to avoid any misunderstandings," he added.

The Chief Factory Inspector pointed out that it was equally important for contractors to ensure proper co-ordination and communication among supervisors and workers at all levels on a construction site to enhance safety.

21

"Failing to implement safety precautionary measures is definitely a breach of safety legislation which may end up in court," he said.

"If anything went wrong as a result of such failure or gross negligence, it could give rise to other legal actions outside the safety laws."

Meanwhile, a team of experienced Factory Inspectors, led by Superintendent of Factory Inspectors Wong Ching-kwok of the New Airport and Railway Office, are still investigating the fatal accident which occurred on the Route 3 site in Kwai Chung on February 24.

They are working together with the professionals in the Electrical and Mechanical Services Department and the Highways Department in carrying out in-depth investigations.

Mr Chan said: "The cause of the mishap will be useful in the prevention of similar accidents from occurring again."

End/Thursday, March 9, 1995

1000-Day Regiment takes the field *****

The following is issued on behalf of Joint Service Public Relations Staff:

Hong Kong's newest and shortest-lived regiment, the Hong Kong Logistic Support Regiment, Royal Logistic Corps, is to conduct a field training exercise from tomorrow (Friday) to March 12.

On a day-to-day basis members of the Logistic Support Regiment are employed in a variety of special occupations, from cooks to drivers, storemen to mechanics. However, like all members of the British Army, they are required to be fighting soldiers first and foremost, and the exercise is designed to test their abilities under a series of difficult conditions.

22

The regiment, known as the 1000-Day Regiment because of its short life span, is unusual in that it is made up of personnel of three different nationalities. Two 20-man platoons, of British, Gurkha and Chinese soldiers, will begin their training on Stonecutters Island before taking part in an exercise at Sai Kung Country Park, Lo Wu Camp and Castle Peak Ranges.

The Logistic Support Regiment, Royal Logistic Corps, was formed in April 1994 as part of the drawdown of British Forces in the territory and the need to concentrate and manage the remaining logistic expertise. The regiment employs over 500 military and civilian personnel and has its headquarters at Osborn Barracks, Kowloon Tong.

Attention news editors:

You are invited to cover the exercise on Saturday (March 11). Photo opportunities will be provided to see members of the regiment abseiling at High Island Camp and attempting a water obstacle course at Wong Shek Pier.

A coach will be provided to carry the media from Prince of Wales Barracks in Central to High Island. The coach will depart at 8.15 am and those attending should arrive at the barrack no later than 8 am. The coach will leave High Island at 1.30 pm and return to the Prince of Wales Barracks.

End/Thursday, March 9, 1995

Social Welfare Department awards subvention review contract * * * * *

The Social Welfare Department today (Thursday) awarded a $6.4 million contract to Coopers & Lybrand Management Consultants Limited to review the existing social welfare subvention administration.

23

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 non-governmental organisations as well as to simplify existing subvention allocation procedures.

The contract-signing ceremony took place at the press conference room of the Government Information Services.

End/Thursday, March 9, 1995

Applications invited for visual arts development projects

* * * * *

The following is issued on behalf of the Hong Kong Arts Development Council:

The Visual Arts Committee of the Hong Kong Arts Development Council (ADC) is inviting applications from qualified individuals or groups to carry out seven visual arts development projects.

Altogether, $900,000 will be allocated for these projects which are aimed at nurturing and developing an environment conducive to the planning, promotion and production of visual arts activities.

The titles of the seven projects are:

* The Hong Kong Artists' Series Pilot Publication Scheme

* A Pilot Programme to Promote Exhibition Activities in Local Primary and Secondary Schools

* The Establishment of a Frame Bank - A Pilot Scheme

24

* A Pilot Study on Establishing an Archival System on Existing Resources, Information, Materials and Research Studies Related to Visual Arts Development in Hong Kong

* The Survival of Visual Artists Training Programme

* A Pilot Study on Establishing a Development Scheme for Visual Arts Organisations

* A Needs Assessment Study on Establishing a Dedicated Academy for Cultural Studies, Literary Arts and Visual Arts in Hong Kong

A sum of $200,000 will be allocated to each of the first two projects while the rest will each be given $100,000.

Any individuals or organisations wishing to apply for one or more of the seven projects are requested to submit a concrete and elaborate project proposal, along with a detailed account of the individual's qualifications or the past project records of the organisation.

"Interested parties should obtain from the Secretary of the Visual Arts Committee a specific information sheet outlining the specifications for developing the proposals for each individual project," a spokesman for the ADC said today (Thursday).

"The proposals will be considered by the committee at the end of March this year," he said, adding that all submitted documents would be held in strict confidence and returned to the applicants upon request if the proposals failed to be selected.

All applications and supporting documents should be submitted in written form to the Secretariat of the Hong Kong Arts Development Council in Room 4004, 40th floor, Revenue Tower, 5 Gloucester Road, Wan Chai , Hong Kong (fax no. 2519 9301) on or before March 25.

Enquiries regarding the seven projects can be made on 2594 5627.

End/Thursday, March 9, 1995

25

Public urged to support heritage preservation

*****

The mammoth port and airport development and other construction programmes in Hong Kong have necessitated major archaeological rescue excavations which have helped to increase significantly the public's knowledge of prehistoric activities in the territory, the Secretary for Recreation and Culture, Mr James So, said today (Thursday).

These excavations have been carried out by the Antiquities and Monuments Office (AMO) of the Recreation and Culture Branch as well as outside parties commissioned on a project by project basis.

. . . • .."i i... .

"It has been heartening that recently funds for many of these excavation projects have come from the developers of the sites in question, indicating that heritage preservation is gaining greater recognition and more support from the private sector," Mr So said.

"The Jockey Club has also been particularly supportive with grants for archaeological excavations."

However, he pointed out that these efforts would be largely in vain if heritage preservation was merely an academic pursuit of interest to a handful of scholars.

"The community must also be positively involved in order to show concern, to appreciate and to leam from the relics of our past," he added.

Mr So was speaking at the opening of the five-day Conference on Archaeology in Southeast Asia, organised by the University of Hong Kong's Museum and Art Gallery with the assistance of the AMO.

•>' -."I r- . (

He said up to the present, 51 items including ancient rock carvings, archaeological sites and historical structures had been declared as monuments in Hong Kong, with 10 other outstanding examples of historical architecture deemed as such.

• ■ • 4 *w a •

Furthermore, 340 buildings have been graded, which will serve as a pool for selection for further protection. .

26

The Government is also planning to set up another heritage trail in Kam Tin, Yuen Long, in addition to the existing one in Ping Shan, to cater for the increasing public wish to learn about Hong Kong's heritage.

Mr So told the gathering that to promote awareness of the local heritage amongst the public, and in particular among young people, seminars, workshops, field studies, lectures, exhibitions, and voluntary services such as maintenance of historic sites and processing of archaeological finds were frequently organised.

The Lord Wilson Heritage Trust has provided funding support to schools and youth groups for the organisation of heritage-related activities, and sponsored a number of large-scale promotional and educational programmes, including this international conference and a 13-episode weekly television programme on Hong Kong's heritage.

A learning package on local history for junior secondary students is being prepared by the Curriculum Studies Department of the University of Hong Kong, providing useful reference materials to assist younger generation in their venture into the 6,000 years of local history.

Mr So said Hong Kong was also maintaining cultural exchange programmes with neighbouring territories.

"An archaeological study at Sha Tsui Tau, Tung Chung, is being conducted jointly by the Antiquities and Monuments Office and the General Office of the Shenzhen Committee for Protection of Antiquities and Monuments, the Guangdong Institute of Cultural Relics and Archaeology and the Anthropology Department of the Zhong Shan University," he said.

He remarked that the task of heritage preservation, conservation and education was never-ending.

"A great deal of work has yet to be done and we need continued support from both organisations and individuals to further our work," he added.

End/Thursday, March 9, 1995

27

Immigration investigators catch 51 illegal workers

*****

Immigration investigators arrested 51 people suspected to have taken up unapproved employment as workers in restaurants or offices during a large-scale operation in Tsim Sha Tsui and Yau Ma Tei today (Thursday).

Six of them were also found to have overstayed in Hong Kong.

Of the 33 women and 18 men arrested, 29 were Filipinos, five Pakistanis, five Sri Lankans, eight Chinese, one Bangladeshi, one Indian, one Belgian and one Korean.

Among them, 28 were foreign domestic helpers and the rest were visitors.

A Chinese woman is helping with investigation.

Acting on information, 78 officers were mobilised to check a large number of business establishments and residential premises.

A spokesman for the Immigration Department said visitors were not allowed to take up any employment, whether paid or unpaid, without permission from the Director of Immigration.

"Foreign domestic helpers should only take up domestic duties for their contract employers and are not permitted to work part-time or engage in nondomestic duties.

ft . f. .

"Those who breach their conditions of stay will be prosecuted and on conviction, the maximum penalty is a fine of $5,000 and imprisonment for two years," he said.

People who aid and abet others to commit the offences are also liable to prosecution and penalty, he added.

End/Thursday, March 9, 1995

28

Weakened water supply to Tsuen Wan on Saturday

*****

Fresh water supply to some premises in Tsuen Wan will be weakened from 11 pm on Saturday (March 11) to 3 pm the following day to facilitate water mains connection.

The affected areas include Texaco Road, Yeung Uk Road, Hoi Hing Road, Tsuen Wan MTR station, Luk Yeung Sun Tsuen, Riveria Garden and those along the section of Castle Peak Road from Tsuen Wan to Ting Kau.

End/Thursday, March 9, 1995

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,131 0930 +523

Closing balance in the account 1,266 1000 +523

Change attributable to : 1100 +629

Money market activity +590 1200 +590

LAF today -1,455 1500 +590

1600 +590

LAF rate 4.25% bid/6.25% offer TWI 118.8 *+1.1* 9.3.95

29

Hong Kong Monetary Authority

EF bills

EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.13 15 months 2605 6.35 99.78 6.64

1 month 5.30 24 months 2702 7.50 101.00 7.06

3 months 5.88 29 months 3707 6.95 99.74 7.19

6 months 6.24 35 months 3801 8.00 101.77 7.44

12 months 6.56 58 months 5912 8.15 101.27 7.97

Total turnover of bills and bonds - $22,928 million

Closed March 9, 1995

End/Thursday, March 9, 1995

DAILY INFORMATION BULLETIN

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

Friday, March 10,1995

Contents Eage No.

Govt to spend more on new non-Airport Core Programme projects .. 1

Banking licence of BCCHK revoked.................................. 3

Broadcasting Authority approves of Pearson's acquisition...... 4

Broadcasting Authority to delete provisions....................... 4

Trade Department to review need for additional rice stockholders at year end.......................................................... 6

Intellectual Property Department rolls out on the information super highway........................................................... 8

Board supports listing of Mai Po and Inner Deep Bay as a Ramsar site............................................................. 10

Waterloo Road development plan published...................... 11

Works for river trade terminal development approved.............. 13

Drainage channel....

Contents

Page No,

Drainage channel to alleviate flooding.................................. 14

Siu Mo To jetty to serve new airport.................................... 15

330 additional supported employment places.............................. 16

Careers information counts.......................................... 17

Sai Kung Police Station stops displaying weather signal............. 18

Hong Kong Monetary Authority money market operations................ 19

)

1

Govt to spend more on new non-Airport Core Programme projects *****

The Government intends to start work on 114 new non-Airport Core Programme projects at a total cost of $2.9 billion in 1995-96 to further uplift the Public Works Programme (PWP), the Secretary for Works, Mr James Blake, said today (Friday).

Mr Blake said: "Expenditure on these public works projects outside the Airport Core Programme (ACP) in 1995-96 will be 70 per cent more than that for 1994-95.

"The effort to uplift our performance for the betterment of Hong Kong people is reflected in an 8 per cent increase in the 1995-96 PWP expenditure in real terms, excluding land acquisition and purchase of properties."

In the longer term, Mr Blake said the Government planned to spend $105 billion between 1994 and 1999 on non-ACP capital works.

Major projects due to begin in 1995-96 or after include the Lantau Port Development Phase I, Tseung Kwan O Hospital, Tin Shui Wai reserve zone development and the South Tsing Yi Duplicate Bridge.

On the Lantau Port Development, Mr Blake said: "It is important that we should continue our forward planning and implementation of projects to maintain our competitiveness and to meet the growing demand for port facilities."

He noted that port activities in Hong Kong had been growing at an average annual rate of 20 per cent in the past five years. They account for 20 per cent of the GDP in Hong Kong.

"The Lantau Port scheme will be developed progressively in the next few years. It will expand the Western Harbour Anchorage significantly by way of building a 4,300-metre breakwater between Lamma Island and Cheung Chau, and reclamation to provide land for four new container terminals with 17 berths and port related industries, transport infrastructure and marine support services.

- 2 -

"The scheme will also considerably enhance our ability to handle the fast growing river trade with China.

"The Government has commissioned consultancy studies on the design of the reclamation and terminal quay structures. In parallel, detailed planning and design of ancillary works are being undertaken. We hope the first new berths will be ready for use by early 1998."

On other major projects, he noted that the Tin Shui Wai Reserve Zone Development would produce about 40,000 residential units in the private and public sectors.

The Tseung Kwan O Hospital will provide 450 beds upon completion in 1999. Work on the South Duplicate Tsing Yi Bridge is targeted to begin later this year for completion in early 1999.

Turning to PWP expenditure, Mr Blake said: "The actual spending for 1994.95 will be about 96 per cent of the Budget estimate.

"This will be the second consecutive year that we are able to keep the PWP spending so close to the estimate. It is a big improvement when you compare with the 39 per cent underspending in 1991-92 and 23.9 per cent in 1992-93 before a package of measures was put in place to strengthen our control and monitoring of PWP spending.

"Certainly, we are not complacent with this figure and would continue to improve our management and ability to deliver the PWP programme on time and within budget," Mr Blake said.

End/Friday, March 10, 1995

3

Banking licence of BCCHK revoked *****

The banking licence of the Bank of Credit and Commerce Hong Kong Limited (BCCHK) has now been revoked, a Government spokesman announced today (Friday).

He emphasised that the revocation of BCCHK's banking licence was merely a technical step and would not prejudice the interests of creditors with outstanding claims on the bank.

The BCCHK has ceased to carry on banking business and is being wound up in pursuant to an order by the High Court in March 1992.

The spokesman explained that Monetary Authority had not sought an earlier revocation of BCCHK's banking licence for the purpose of retaining its statutory powers in relation to the bank, including the power to gather information about the institution's affairs.

"The joint Special Managers also found it useful to retain the banking status in pursuing claims on behalf of the BCCHK," he added.

"With the liquidation at a very advanced stage, the Monetary Authority is now of the view that the need to retain the BCCHK's status as a licensed bank is no longer necessary and this is also agreed by the Official Receiver who is the liquidator," the spokesman said.

At present, there are 179 licensed banks in Hong Kong, of which 148 are incorporated outside the territory.

End/Friday, March 10, 1995

4

Broadcasting Authority approves of Pearson's acquisition $ * * * *

The Broadcasting Authority has approved an application by Pearson plc, a British company, for the acquisition of 10 per cent of the issued share capital ofTVB.

"In approving the application, the Broadcasting Authority has taken account of the fact that after the acquisition, Pearson, a company not ordinarily resident in Hong Kong, will have no significant influence or control over the affairs of TVB which will remain very substantially in the hands of persons who are ordinarily resident in Hong Kong," a spokesman for the Authority said.

Pearson is an international media group listed on the London Stock Exchange. According to information provided by Pearson to the Broadcasting Authority, its interests include the Financial Times, the Economist Group (50%), Thames Television, BSkyB (14.9%) and Yorkshire - Tyne Tees Television (14%).

End/Friday, March 10, 1995

Broadcasting Authority to delete provisions

* * * * *

The Broadcasting Authority decided at its meeting yesterday (Thursday) to delete, from the television codes of practice, certain provisions which were no longer appropriate.

5

First, the provision prohibiting programmes containing any matter which "is likely to be injurious to community well-being or morality, or otherwise undesirable in the public interest" is deleted because it is too vague and possibly inconsistent with the Bill of Rights.

Second, the restriction on the repeat of feature films is abolished.

A spokesman for the Broadcasting Authority said: "The Broadcasting Authority considered the restriction an unwarranted interference in the programming of the licensees.

"With the increase in the number of TV channels in Hong Kong, TV stations should be allowed to adjust their programme Scheduling in response to the market force at play."

Third, advertisements on female sanitary products may be broadcast at any hour of the day.

However, the present restriction of two such advertisements in any hour (except in women's programmes where no more than three may be broadcast in a half-hour programme or five in a one-hour programme) should remain unchanged.

The spokesman said these changes arose from the mid-term review of the licences of TVB and ATV.

They had been made after considering public opinions and the views of the TV stations concerned. "The changes will take effect from March 13, 1995, " the spokesman said.

The Broadcasting Authority also considered a number of complaints against TV and radio programmes.

It decided to advise TVB, in respect of a promo for "Focus on Focus" showing excerpts of a male strip show, that material unsuitable for children's viewing should not have been screened in close proximity to the family viewing hours.

6

Wharf Cable would be advised that a music video containing violence sequences should have been advertised as not suitable for children in both the programme guide and on screen prior to its broadcast.

The Broadcasting Authority also decided to advise ATV, in connection with a lucky draw contest for the programme "The Most Popular TV Commercial Awards Live", to observe more closely the provision in the Television Ordinance that the results of a television contest should be determined by the skill or knowledge of the participants and not by chance.

At yesterday's meeting, the Broadcasting Authority also gave approval for Wharf Cable Ltd. to establish a wholly-owned subsidiary, to be known as "New Television Ltd.", to produce and distribute programmes as well as to develop new channels for Wharf Cable.

End/Friday, March 10, 1995

Trade Department to review need for additional rice stockholders at year end ***** > : i

The Trade Department said today (Friday) there was no urgent need to register any new rice stockholders upon the de-registration of a stockholder in January this year but the department would review the position at the end of this year. u

During the annual renewal of registration of stockholders for the year ending December 31, 1995, the stockholder, Kian Gwan Co (China) Ltd, had informed the department that it did not wish to renew its registration.

•V . j

A spokesman for the department explained that imports of rice were subject to a control scheme, to ensure a regular and adequate supply and to maintain a reserve stock for emergency purposes.

7

"Under the scheme, imports of rice for local consumption are governed by quotas. The quotas are divided among a number of companies registered as stockholders who are obliged to hold at any time 45 tonnes of rice as reserve stock for each unit of quota," he said.

"At the end of 1994, 1,000 units of quota were distributed to 46 registered stockholders. Kian Gwan Co (China) Ltd, which held 40 units of import quota, had decided not to renew its registration as stockholder from January 1995. "Since then, we have received a few enquiries on how we are going to dispose the 40 units of import quota surrendered by Kian Gwan."

The spokesman said after careful deliberations, the Trade Department concluded that there was no urgent need to invite applicants to take up these quotas for the time being.

"There are three reasons for coming up with such a conclusion," he said.

"First, although the non-allocation of 40 units means that the amount of reserve stock has been reduced from 45,000 tonnes to 43,200 tonnes, the shortfall of 1,800 tonnes is only equivalent to two days' consumption. The remaining reserve stock is sufficient for 48 days' consumption and would still be adequate for Hong Kong's need.

"Second, the non-allocation does not mean that there has been any shortfall in rice import. In effect, the amount used to be imported by Kian Gwan is shared among the existing 45 stockholders.

"Third, the rice market in terms of the sharing among the stockholders is rather pluralistic. The addition or decrease in one or two stockholders would not have any significant impact on improving and reducing competition. "Nevertheless, the department will monitor the rice market and review the situation at the end of this year."

The spokesman said the question had been discussed at the Rice Advisory Committee meeting chaired by the Director-General of Trade earlier this week.

8

Members of the advisory committee, including rice importers, wholesalers, retailers and a few professionals, generally agreed to the department's views.

He pointed out that the annual total consumption of rice in Hong Kong had been on a gradual decrease in recent years despite a steady increase in population.

"In 1990, Hong Kong people consumed more than 350,000 tonnes of rice. Last year, the figure dropped to 328,240 tonnes. This is largely due to the increasing affluence of the population and the availability of diverse choice of other staple food like bread and noodles," he said.

"Nevertheless, rice is still the most important staple diet which has emotional connotations among Chinese people. The reserve stock has been psychologically reassuring to Hong Kong people at times of crises. It also serves as a cushion against overseas fluctuations in supply. Rice prices have been quite stable in recent years."

End/Friday, March 10, 1995

Intellectual Property Department rolls out on the information super highway *****

The Hong Kong Government's Intellectual Property Department (IPD) is one of the first Hong Kong Government departments to set up an information centre on the INTERNET World Wide Web.

Over 20 million people all over the world (over 10,000 of them in Hong Kong) with computers connected to the INTERNET can now read news about Hong Kong's efforts to promote intellectual property protection, and get simple information on copyright and how to apply to register trademarks and patents free of charge.

9

Apart from running Hong Kong's Patents and Trademarks Registries, the IPD has the task of promoting a respect for intellectual property rights in Hong Kong.

"The INTERNET World Wide Web is an obvious choice for putting across our message," an IPD spokesman said today (Friday).

"More and more schools, universities, professional people and commercial organisations are linking to the INTERNET, and computer-literate people are the targets for one of our most important messages - 'Always use licensed computer software'."

Apart from the sort of information brochures we provide at our enquiry counters (for example "how to apply ..." information and our Performance Pledge), we plan for the centre to operate like a news-sheet.

"We have also invited contributions from the collecting societies, which collect royalties for musical and video performances, as well as groups like the Business Software Alliance," the spokesman said.

"Although the INTERNET is a centre for computer enthusiasts, we have to remember that all types of intellectual property rights need to be protected.

"I hope that later, we will get offers of contributions from other organisations interested in IP protection outside the Government to add to our 'news- sheet'.

"Unfortunately, because of technical limitations, the World Wide Web cannot display information in Chinese at present."

To connect to IPD's information centre, one needs a computer linked to the INTERNET through a MODEM, which allows computers to pass data across telephone lines, like a fax machine.

Most people use special software available from INTERNET (which comes with a free licence for evaluation purposes or use by students or in nonprofit organisations) to search for information on the World Wide Web. Some common pieces of software are called "Mosaic" and "Netscape".

10

With such a programme installed on one's computer, one just types in the "address" of the IPD information centre, and the programme will take one straight to it.

For those already connected to the INTERNET World Wide Web, they can connect to the Intellectual Property Department Web Page at:

http://www.houston.com.hk/hkgipd/

End/Friday, March 10, 1995

Board supports listing of Mai Po and Inner Deep Bay as a Ramsar site *****

The Town Planning Board was today (Friday) briefed on the Govemor-in-Council's decision to approve the proposal to list Mai Po and Inner Deep Bay as a Ramsar site.

The Board was informed that consultation on the proposal was being carried out by the Agriculture and Fisheries Department with possible listing in May this year.

The listing would put an area of 1,500 hectares of wetland under protection.

In addition, financial allocation has been made for conducting a consultancy study soon to develop a comprehensive and active conservation management plan for the area.

Measures would include habitat creation and restoration, ecological survey and monitoring as well as vegetation and wildlife management.

11

The Board recognises the importance of Mai Po and Inner Deep Bay as a wetland habitat for water birds and migratory birds and has in the past asked the Government to designate it as a "Wetland of International Importance Especially as Waterfowl Habitat" under the Ramsar Convention as a matter of urgency and to take the necessary steps to have it preserved and managed.

Therefore, the Board strongly supports the proposal to list Mai Po and Inner Deep Bay as a Ramsar site and will give weight to it in considering applications for development in the area in future.

Members of the Board also called for better co-ordination of developments on both sides of the border in this sensitive region so as not to jeopardise its importance as a nature reserve of international significance.

They were informed that there are already established channels for such exchange of views between the authorities.

End/Friday, March 10, 1995

Waterloo Road development plan published

*****

The Town Planning Board today (Friday) published the draft Land Development Corporation (LDC) Waterloo Road/Yunnan Lane Development Scheme Plan and the associated Land Use Diagram for a proposed redevelopment scheme in Yau Ma Tei.

The 0.42-hectare scheme area is bounded by Waterloo Road, Portland Street, Man Ming Lane and Shanghai Street, including Yunnan Lane and a section of Shek Lung Street.

Most of the buildings in the area are six-storey completed before 1966. They are used mostly for residential purpose on upper floors with shops and metal/electrical workshops on ground floor.

12

The area is in severe shortage of public open space and up-to-standard community facilities.

"The scheme area is designated as 'Comprehensive Development Area' to facilitate the LDC to undertake comprehensive development for the area," a spokesman for the Town Planning Board said.

"The scheme plan provides a planning framework for the redevelopment of the scheme area by restructuring the existing land uses and street patterns," he said.

The proposed development, as shown on the Land Use Diagram, comprises a commercial/office complex, Govemment/Institution/Community (GIC) uses and a large public open space.

The proposed GIC facilities include a refuse collection point, a public latrine, a hostel for single persons, a day nursery and a public toilet for the disabled. »

Meanwhile, a public open space of 1,650 square metres will be provided at the comer of Portland Street and Man Ming Lane to serve the nearby residents, the spokesman added.

To achieve efficiency in land use, Yunnan Lane and a section of Shek Lung Street will be closed. Underground car parking and loading/unloading facilities will be provided on basement levels.

"LDC will be required to submit a master layout plan for the scheme area to the Town Planning Board for approval," the spokesman said.

The draft scheme plan No. S/K2/LDC1/1 is available for public inspection until May 10 at:

* Planning Department, 16th floor, Murray Building, Garden Road, Hong Kong;

13

* Kowloon District Planning Office, 11th floor, Leighton Centre, 77 Leighton Road, Hong Kong; and

* Yau Tsim Mong District Office, sixth floor, Mong Kok Government Offices, 30 Luen Wan Street, Mong Kok, Kowloon.

Any person affected by the scheme plan may submit a written objection to the Secretary of the Town Planning Board, c/o Planning Department, 13th floor, Murray Building, before May 10.

Copies of the draft scheme plan can be bought at the Survey and Mapping Office, Lands Department, 14th floor, Murray Building, and the Kowloon Map Sales Office, ground floor, 382 Nathan Road, Kowloon.

End/Friday, March 10, 1995

Works for river trade terminal development approved *****

The Government has authorised a developer to carry out dredging, reclamation and submarine infrastructure works in Tuen Mun for the development and operation of a proposed river trade terminal.

The works are tentatively scheduled to begin by early 1996 in phases for completion by 1999 within an area of about 370 hectares of foreshore and seabed.

14

Upon completion, there will be 63.47 hectares of reclaimed land, associated seawalls, and a 10.75-hectare breakwater for the river trade terminal development and a sewage outfall reprovisioning and extension system for the adjoining Pillar Point Sewage Treatment Plant.

The extent of the area affected by the works is notified in the Gazette today (Friday).

The plan can also be purchased at the Survey and Mapping Office.

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 Tuen Mun District office, second floor, Tuen Mun Government Offices, 1 Tuen Hi Road, Tuen Mun.

Any person who considers that his interest, right or easement in or over the foreshore and seabed involved will be affected may submit a written claim for compensation to the Director of Lands on or before March 10 next year.

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 such particulars to substantiate the claim.

End/Friday, March 10, 1995

Drainage channel to alleviate flooding *****

The Government plans to construct a concrete drainage channel in Kam Tin, Yuen Long to alleviate flooding problems in the area.

The channel will be built within an area of about 0.31 hectare of foreshore and seabed at the upstream of Kam Tin River.

The works are scheduled to begin in mid-1996 for completion in late

1998.

15

The extent of the area affected is notified in the Gazette today (Friday).

The notice and its related plans can be seen on notice boards posted near the site. The plan can also be seen at the Lands Department's Survey and Mapping Office, 14th floor, Murray Building, Garden Road; and at the Yuen Long District Office, ground floor, Yuen Long District Branch Offices Building, 269 Castle Peak Road, Yuen Long.

Any person who considers that his interest, right or easement in or over the foreshore and seabed involved will be affected may submit a written objection to the Director of Lands before May 10 this year.

End/Friday, March 10, 1995

Siu Mo To jetty to serve new airport ♦ * * ♦ ♦

The Civil Engineering Department is inviting tenders for the construction of a jetty at Siu Mo To as part of the government facilities for the new airport at Chek Lap Kok.

A precast concrete block solid pier and a rubble pitched slope catwalk will be built. On completion, they will serve the Civil Aviation Department's equipment station at Siu Mo To.

Construction is expected to start in May and be completed in November this year.

The works have been designed and construction will be supervised by the Ports Works Division of the Civil Engineering Office of the department.

Tender forms and further particulars can be obtained from the Chief Engineer, Port Works Division, Civil Engineering Office, fifth floor, Civil Engineering Building, 101 Princess Margaret Road, Kowloon.

Tender offer will close at noon at the end of this month.

End/Friday, March 10, 1995

16

330 additional supported employment places ♦ * * ♦ *

The Social Welfare Department has secured funding to establish an additional 330 places in supported employment service this year, the Director of Social Welfare, Mr Ian Strachan, said today (Friday).

Speaking at the opening ceremony of the Salvation Army Shaukeiwan Day Activity Centre, Mr Strachan said this was a form of employment for disabled persons, which allowed them to work in an integrated open setting with ongoing support service, and to have access to the usual benefits of having a job, such as income at market rates and satisfaction of real work achievement.

"Most important of all, disabled workers would have opportunities to work with ordinary workers, to relate to others in ordinary social situations and to enjoy a fuller social life.

"We are also reviewing the role of sheltered workshops as we wish to see more capable sheltered workers move on to a more independent work settings like supported employment programmes, or even open employment," he said.

Turning to the overall objective in rehabilitation, Mr Strachan said it was to help disabled persons to integrate into the community, to lead an independent life as far as their capability permitted and to enjoy equal opportunities as ordinary citizens.

"For mentally handicapped adults, the day activity centre is designed to provide them basic training in self-care, daily living and social skills, as well as occupational and simple work training.

"Given the chance to develop their potential to the fullest extent possible, some of these trainees can ultimately move on to other programmes such as sheltered workshop. Other may need to stay on for a longer term training and care," he said.

17

For this group of clients, Mr Strachan said the Government was exploring ways to enhance the day care programme so that the life-long burden of families in caring for their mentally handicapped members could be substantially relieved, without having to place their disabled members in institutions as an alternative.

"In this direction, we are considering day care with an extended evening session which provides meals and personal care.

"If realised, this will be a great relief to families who wish to accommodate their disabled members at home," Mr Strachan added.

End/Friday, March 10, 1995

Careers information counts *****

In an era of rapid changes, getting up-to-date information on careers would enable us to develop a successful career with confidence, Assistant Commissioner for Labour Mrs Angela Ho said today (Friday).

Speaking at the 13th Careers Quiz Prize Presentation, she said the aim of setting up the Careers Advisory Service (CAS) was to provide the public, especially young people, with adequate information on career planning.

"Apart from providing different kinds of careers information, the CAS also organises various activities such as the Careers Quiz to help students gain access to up-to-date careers information," Mrs Ho said.

Organised by the CAS, the Careers Quiz aimed at arousing students' awareness of the importance of choosing a suitable career and encouraging them to actively collect first-hand information on careers and training.

A record number of 140,000 students from more than 270 secondary schools in Hong Kong took part in the Quiz. Participants were required to answer 50 multiple choice questions on careers, vocational training as well as labour legislation.

18

"The CAS's careers information centres are the best places to go to for careers information. We hope that students will make good use of them," Mrs Ho added.

She expressed appreciation to the Pentax Camera of Jebson & Company Limited for sponsoring the event and the Information Technology Services Department for marking the quiz papers.

The Manager of Jebson & Company Limited, Mr Yeung Sai-kwong, also presented prizes at the ceremony.

End/Friday, March 10, 1995

Sai Kung Police Station stops displaying weather signal *****

With effect from April 1, day and night signals will no longer be displayed at the tropical cyclone and strong monsoon warning signal station at Sai Kung Police Station.

Visual signals will continue to be displayed at the eight signal stations at the following locations:

* Aberdeen Marine Office,

* Cheung Chau Meteorological Station,

* Lau Fau Shan Police Station,

* Sha Tau Kok Sewage Treatment Works,

* Shau Kei Wan Marine Office,

* Stanley Police Station,

* Tai Lam Small Boat Unit Headquarters, and

* Tai O Police Station.

Signal stations convey very little information. Also the signals may be obscured during adverse weather conditions and by high rise buildings.

19

When tropical cyclone or strong monsoon warning signals are hoisted, information on the signal status, the weather and precautions to take are broadcast frequently by radio and television.

Residents in Hong Kong are therefore advised to listen to the radio or watch the television for the latest information.

Additionally, the public can obtain these information by calling 2835 1473 of the Home Affairs Department's Public Enquiry Service Centre or the Royal Observatory's Dial-a-Weather Service at 1878066 for recorded English weather service and at 1878200 for recorded Cantonese weather service.

End/Friday, March 10, 1995

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,266 0930 +1414

Closing balance in the account 1,756 1000 +1414

Change attributable to: 1100 +1355

Money market activity +1,360 1200 +1360

LAF today -870 1500 +1360

1600 +1360

LAF rate 4.25% bid/6.25% offer TWI 118.5 *-0.3* 10.3.95

20

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.88 14 months 2605 6.35 99.76 6.66

1 month 5.22 23 months 2702 7.50 101.02 7.05

3 months 5.79 28 months 3707 6.95 99.79 7.14

6 months 6.14 34 months 3801 8.00 101.84 7.41

12 months 6.53 57 months 5912 8.15 101.56 7.90

Total turnover of bills and bonds - $25,797 million

Closed March 10, 1995

End/Friday, March 10, 1995

DAILY INFORMATION BULLETIN

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

Saturday, March 11,1995

Contents Page No.

No loss to Exchange Fund through Barings episode........................ 1

Sir David Trench Fund Committee invites applications for grants..... 2

Special campaign to inspect construction sites.......................... 3

W eather of F ebruary................................................... 4

Fresh water cuts in Tai Po and Central.................................. 7

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

Sunday, March 12,1995

Contents Page Nq.

Commonwealth Day message 1995 from the Queen, Head of the Commonwealth............................................................ 8

Tsing Ma Bridge main cables to be completed next month.................. 9

Guidelines for nominations by arts organisations....................... 10

Teacher training stepped up for TOC implementation.................. 11

Part-time teachers required............................................ 12

Survey of operation of New Territories taxis........................... 13

Fire safety message for students....................................... 14

1

No loss to Exchange Fund through Barings episode

*****

The Hong Kong Monetary Authority (HKMA) said today (Saturday) that there had been no loss to the Exchange Fund through the Barings episode.

The majority of the reserves of the Exchange Fund are managed in-house. Only a minor portion is being invested through a number of external managers and Barings International Investment Management Ltd. (BIIML) is one of them, a HKMA spokesperson said.

Of the portfolio managed by BIIML, 99 per cent is invested in securities and other investments that are placed with approved custodians in the name of the Exchange Fund and are segregated from that of Barings. The Exchange Fund's securities with BIIML were not at risk throughout this episode.

Only a very small cash element - less than one per cent of the portfolio managed by BIIML - was held at Baring Brothers and Co. as working balances.

This amount, which was insignificant, was frozen during the administration.

The HKMA has now received assurances from Barings that this sum will be honoured, and interest will be paid on it for the past two weeks. ING Bank has also publicly stated that these assets will be honoured.

Note to Editors:

For further press enquiries, please contact Ms Julia Leung at 2878 8246 or pager 110040240.

End/Saturday, March 11, 1995

2

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

The Sir David Trench Fund Committee is inviting applications for grants from the Sir David Trench Fund for Recreation and the Jockey Club Grant for Permanent Recreational Facilities for Youth.

The Sir David Trench Fund for Recreation is aimed at providing recreational, sporting, cultural and social activities facilities to promote personal development, purposeful use of leisure and community involvement, particularly of young people.

The Jockey Club grant is mainly for the construction of recreational facilities to meet the needs of young people.

A single application form is available for the two funds.

Application forms are obtainable at all District Offices of the Homes Affairs Department, and at the Education, Social Welfare, Health, Urban Services and Regional Services Departments as well as the Hong Kong Council of Social Service.

They are also available at the Recreation and Sports Division of the Recreation and Culture Branch, and the Secretariat of the Sir David Trench Fund Committee which is responsible for administering both the Sir David Trench Fund for Recreation for capital and non-capital projects and advising on the disbursement of the Jockey Club Grant.

Completed forms should be returned to the Secretariat of the Sir David Trench Fund Committee at Room 4015, 40th Floor, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.

Applications for capital works projects will close on May 20 while that for noncapital works projects is open throughout the year.

Enquiries about the Sir David Trench Fund for Recreation capital works projects and the Jockey Club Grant for permanent facilities for youth can be made on tel 2594 5659 while those about non-capital works projects on tel 2594 5660.

End/Saturday, March 11, 1995

- 3 - v o

Special campaign to inspect construction sites »«■*** •

.• ? h ° 1 •• •r ?.

• 9 ■* ■- • • • • • *

The Labour Department will launch a special two-phase campaign to inspect construction sites in the territory especially those with poor safety records.

The first phase will start on March 13 (Monday) and the second phase, in August. Each phase will last about three months.

•• • *

Deputy Chief Factory Inspector Mr Kan Hon-sang said today (Saturday) that the campaign was aimed at Combating construction site accidents and reminding both the management and the workers of the importance of site safety.

’’From experience, launching a special campaign in addition to day-to-day routine inspections before the advent of the rainy season is effective in enhancing construction site safety,” he added.

* ' ■ • • c X

A special task force comprising experienced factory inspectors has been assigned for the campaign.

The team will be paying particular attention to high risk activities such as working at height, in confined space or with heavy machinery equipment on construction sites with poor accident or prosecution records.

The use of suspended working platforms, lifting appliances, lifting gears and personal protective equipment such as safety belts and safety helmets will also be checked.

"Unscrupulous contractors and workers who choose to ignore construction site safety will be prosecuted without wamiilg," Mr Kan warned.

End/Saturday, March 11, 1995

4

Weather of February

♦ ♦ ♦ ♦ ♦

February this year was on the whole slightly cooler and drier than normal, a monthly weather report released today (Saturday) by the Royal Observatory said.

The mean air temperature of 15.1 degrees was 0.8 of a degree below normal.

Generally fine and dry weather occurred during the first 12 days of the month but cloudy and rainy conditions prevailed thereafter.

The monthly rainfall of 33.1 millimetres was 31 per cent below the February average. The rainfall for the first two months this year amounted to 54.2 millimetres, 24 per cent below the normal of 71.4 millimetres for the same period.

Under the influence of a northeasterly winter monsoon, the first day of the month was cold and cloudy. However, temperatures rose slightly during the next couple of days as winds turned to the east.

With the arrival of a northerly surge of the winter monsoon on February 4, the weather became sunny and very dry in the next two days during which a total of 120 hill fires were reported.

Daily minimum temperatures fell gradually and the month's lowest temperature of 10.4 degrees was recorded on the early morning of February 6.

It became progressively milder in the next three days. A fresh easterly airflow reached the coast of Guangdong early on February 10. Locally, a scaffolding was blown down in Happy Valley in high winds.

In the next couple of days, the easterlies moderated and the month's highest temperature of 22.3 degrees was reached on a sunny day on February 12.

A trough of low pressure over South China advanced southwards on February 13. As this trough traversed the coast that evening, local weather deteriorated with rain and thunderstorms.

Unsettled weather continued to affect the territory during the following morning but rain eased off in the afternoon. It stayed cloudy and cool with some rain from February 15 to 17.

5

A maritime airstream brought humid and misty weather to Hong Kong on February 18. Inside Victoria Harbour, visibility was reduced to 1,000 metres that morning.

A cool and rainy spell lasted from February 19 until the end of the month.

No tropical cyclone activity was observed over the western North Pacific and the South China Sea in February.

Details of the issuance/hoisting and cancellation/lowering of various wamings/signals in the month are summarised in Table 1.1. Monthly meteorological figures and departures from normal of February are tabulated in Table 1.2.

Table 1.1 Warnings and signals in February 1995

Wamings/Signals Effective date and time •

Strong Monsoon Signal 4 Feb 2000- 5 Feb 1100

Thunderstorm Warning 13 Feb 1640- 14 Feb 1130

Fire Danger Warnings

Yellow Red Yellow Yellow 1 Feb 0000 - 2 Feb 0605 2 Feb 0605 - 7 Feb 0600 11 Feb 0615- 12 Feb 2315 26 Feb 0610-26 Feb 1415

Gas Heater Alerts 27 Jan 1630- 7 Feb 1630 25 Feb 1630- 26 Feb 1630

6

Table 1.2 Figures and departures from

Total Bright Sunshine

Mean Daily Global Solar Radiation

Total Rainfall

Mean Cloud Amount

Mean Relative Humidity

Mean Daily Maximum

Temperature

Mean Air Temperature

Mean Daily Minimum

Temperature

Mean Dew Point

Total Evaporation

normal - February 1995

96.0 hours; 1.7 hours below normal

8.96 MJ/SQ M;

1.73 MJ/SQ M below normal

33.1 mm; 14.9 mm below normal

72%; 1% below normal

76%; 2% below normal

17.0 degrees Celsius;

1.6 degrees Celsius below normal

15.1 degrees Celsius;

0.8 degree Celsius below normal

13.5 degrees Celsius;

0.4 degree Celsius below normal

10.4 degrees Celsius;

1.4 degrees Celsius below normal

53.5 mm; 25.5 mm below normal

Remarks: All measurements were made at the Royal Observatory except sunshine, solar radiation and evaporation which were recorded at King’s Park.

End/Saturday, March 11, 1995

7

Fresh water cuts in Tai Po and Central * * * * ♦

Fresh water supply to all premises in Hong Lok Yuen, Tai Po and some premises in Central will be temporarily suspended from 11 pm on Monday (March 13) to 6 am the following day to facilitate water mains leakage detection.

The affected areas in Central will include 76-176F Queen's Road Central, 51-133 and 86-164 Wellington Street, 1-49 Gage Street, 2-10A Aberdeen Street, Kin Sau Lane, Staveley Street, 2-18 and 9-27 Peel Street, 1-3IB and 12-26C Graham Street, Gutzlaff Street, Cochrane Street, Tung Tak Lane, 1-2IB and 2-42 Lyndhurst Terrace, 33-47 Pottinger Street, Eira's Lane, Tun Wo Lane and Wa On Lane.

End/Saturday, March 11. 1995

Hong Kong Monetary Authority money market operations

*****

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

Opening Balance in the account 1,756 09:30 +485

Closing Balance in the account 1,151 10:00 +485

Change Attributable to: 11:00 +485

Money Market Activity +485 12:00 +485

Laf Today -1,090 15:00

LafRate 4.25% Bid/6.25% Offer TWI 118.7 *+0.2* 11.3.95

End/Saturday, March 11, 1995

8

Commonwealth Day message 1995 from the Queen, Head of the Commonwealth

♦ * * ♦ ♦

The General Assembly has proclaimed 1995 as the United Nations Year for Tolerance, a choice which is particularly appropriate for the Golden Jubilee of the United Nations Organisation itself. The same theme has been chosen for this year’s Commonwealth Day.

We in the Commonwealth can teach the rest of the world something about tolerance, because it is at the heart of the unique association to which we belong. Although our countries are spread all over the world and face many different problems, we know a great deal about each other and it is therefore easier for us to understand each other’s point of view even when we disagree.

That understanding is essential to a tolerant society, which is not simply one which gives to the individual scope and freedom from restraint. Rather it is a society which actively develops the people who belong to it, brings out their gifts and enriches their lives because it values their diversity. It does not condone persecution or the harming of some people by others, but it knows how to make allowances when things go wrong. It can forgive mistakes as well as giving encouragement and guidance on how to avoid them. It knows also that enhancing the quality of life of the individual brings benefit to the family, to the community, to the nation and to international relations.

That sort of tolerance is something which all of us must learn if we are to restore peace in the world, and here the young people of the Commonwealth have a special part to play. The young have the vision and ability to make the world a better place, and are not fettered by experience. They can see where the older generation have made their mistakes through intolerance, and they can do better.

Over the last year we have seen shining examples of this quality in action in the emergence of a new South Africa, which I shall be visiting next week, and in the recent signs of change in Northern Ireland. We pray that these examples will inspire everyone to try harder to make tolerance a universal rule of life. On this Commonwealth Day, as we make the traditional affirmations which are at the centre of the Commonwealth Day Observance. I send to all of you, with these examples in mind, a message of encouragement and hope for the future.

End/Sunday, March 12, 1995

9

Tsing Ma Bridge main cables to be completed next month ♦ ♦ ♦ ♦ ♦

Aerial spinning of the two main cables of the Tsing Ma Bridge is moving ahead rapidly with over 97 per cent of the work completed.

The Project Director of the Lantau Fixed Crossing Project Management Office of the Highways Department, Mr C K Lau, said today (Sunday): "It is a significant milestone that the 2.2 kilometres long main cables will be completed on target next month.

"This will then be followed by the lifting and placement of the bridge’s main deck units, which is scheduled to commence in July," he said.

Mr Lau said the two main cables would be among the largest anywhere in the world with a diameter of 1.1 metres, and will be made up of 28,000 tonnes of wires.

"From July last year, immediately after the successful building of two catwalks spanning the Ma Wan Channel, workers started to build up the two cables wire by wire by a spinning process. Now just nine months later, the work is close to completion," Mr Lau said.

Each main cable consists of 33,400 individual wires, each measuring 5.38 millimetres in diameter and with a total length of 160,000 kilometres, enough to circle the earth about four times.

With a central span of 1,377 metres, the Tsing Ma Bridge will be one of the longest suspension bridges in the world, and will be the longest carrying both road and rail traffic.

The Tsing Ma Bridge forms part of the Lantau Fixed Crossing, which is an essential element of the highway network of the Airport Core Programme linking the new airport at Chek Lap Kok and Tung Chung new town to the urban areas of Kowloon and Central Hong Kong.

It is being constructed by the Anglo Japanese Construction Joint Venture, under a $7.14 billion contract awarded by the Highways Department in May 1992.

"The Tsing Ma Bridge remains on schedule for completion by mid 1997," Mr Lau said.

End/Sunday, March 12, 1995

10

Guidelines for nominations by arts organisations

*****

The Recreation and Culture Branch has published a set of draft guidelines for representative arts organisations and for persons whom they nominate to the proposed statutory Hong Kong Arts Development Council.

Under the Hong Kong Arts Development Council Bill, the Council shall consist of a Chairman, a Vice-chairman, 16 members and four ex officio members.

Out of the 16 members, up to nine persons can be nominated by arts organisations representing the following interests:

* literary arts

* music

* dance

drama

visual arts

* film arts

arts administration

* arts education

* arts criticism

’’The draft guidelines lay down the various conditions to be fulfilled by the arts organisations and their nominees,” a spokesman for the Recreation and Culture Branch said today (Sunday).

’’However, they are illustrative rather than mandatory and should in no circumstances be interpreted as restricting the Governor from exercising his discretion or from taking into account other factors when deciding on the appointment of members of the Council,” he added.

Members of the public are welcomed to send their comments on the guidelines to the Recreation and Culture Branch before the end of this month.

Copies of the guidelines are available at the Culture Division, 40th floor, Revenue Tower. 5 Gloucester Road, Hong Kong. Enquiries can be directed to Ms Iris Tung on tel 2594 5625.

End/Sunday, March 12, 1995

11

Teacher training stepped up for TOC implementation

*****

The Education Department is stepping up teacher training in preparation for Phase I of implementation of Target Oriented Curriculum (TOC) in Primary 1 classes of 76 schools in this September.

A four-day School-based Preparatory Programme will be provided for all teachers in the 76 TOC schools from next month to July to further equip teachers for implementation of the curriculum.

The programme comprising talks, discussions, forums, workshops and reflection sessions will be held in individual schools with contributions from both lecturers of the Education Department's TOC Teacher Education Unit and panel chairmen of the respective school.

The TOC Teacher Education Unit will provide a proposed programme outline while teachers and lecturers will work together to tailor a programme according to the specific requirements of the school.

Participants will take an in-depth look at topics related to the implementation of TOC at school level such as Teaching and Learning, Catering for Individual Difference; Assessment and Reporting.

In addition, participants will work in groups on chosen areas of day-to-day operation such as the Scheme of Work. Assessment and Recording/Reporting Systems, Catering for Individual Differences, Time Tabling and Formation of Task Groups, Lesson Planning, etc. This will be followed by reflection and sharing sessions.

The School-based Preparatory Programme follows a series of two-day TOC seminars attended by 8,655 primary school teachers between January and June last year which introduced the concepts of TOC. and three-day TOC seminars for panel chairpersons which prepared them to become subject leaders in the TOC initiative.

The three-day seminars were held between November 1994 and March 1995 and attended by 2,292 panel chairmen from 1,080 government, aided and private primary schools, including special schools.

Meanwhile, the University of Hong Kong has been commissioned to conduct Workshops for School TOC Initiation between March 25 and late June 1995 in support of the implementation of TOC. These will be attended by principals and TOC Co-ordinators of the 76 Phase I schools.

12

Under the arrangements with the university, there will altogether be five identical programmes comprising talks, presentations, workshops and group discussions for a total of 152 participants.

After the commencement of Phase I implementation in September 1995, a School-based Development Programme will be provided from November 1995.

The Development Programme will aim at providing support for Phase I schools in tackling problems. The mode and approach will be similar to the School-based Preparatory Programme but more flexible in catering for different requirements of individual schools.

The spirit of teacher training for the implementation of TOC is to design different courses to meet the requirements of different personnel in schools.

Accordingly, the concepts of TOC are explained to teachers; panel chairpersons are equipped to become subject leaders; and school heads and TOC co-ordinators prepared to become curriculum leaders. Support in terms of school-based programmes is provided to schools at appropriate times both in the planning and implementation stages.

End/Sunday. March 12. 1995

Part-time teachers required *****

A spokesman for the Education Department reminds qualified persons wishing to fill the evening part-time teaching vacancies in various courses operated in the 1995/96 school year to submit their applications not later than March 25 (Saturday).

The Adult Education Section of the department runs a number of courses in centres throughout the territory. They include the English course, the Government Evening Secondary School Course and the Adult Education Course.

The spokesman said experience in teaching English Language at postsecondary or senior secondary levefs, Chinese language, science, social subjects or commercial subjects at senior secondary level and/or possession of a Diploma/Certificate in Education or Advanced Certificate in Teacher Training would be an advantage.

13

The pay scale for part-time teaching is:

* $330 per hour for post-secondary level subjects;

$275 per hour for senior secondary level subjects;

* $220 per hour for junior secondary level subjects; and

* $200 per hour for primary level subjects.

Completed application forms should reach the Adult Education Section of the Education Department at 11th floor, Wu Chung House, 213 Queen’s Road East, Wan Chai on or before March 25, 1995.

End/Sunday, March 12, 1995

Survey of operation of New Territories taxis ♦ ♦ ♦ ♦ ♦

The Transport Department is conducting a survey of operation characteristics and finance of New Territories taxis.

A spokesman for the department said today (Sunday ) that the survey was an annual exercise and comprised a questionnaire and a meter-reading survey.

"Results of the survey will facilitate the formulation of future taxi policy and assessment of fare revision applications from the trade," he said.

About 2,800 New Territories taxi owners were invited to help in the survey.

They are requested to fill in and return a questionnaire and present their taxis for meter-reading at any of the six meter-reading centres in the New Territories.

Letters, questionnaires and sketches showing the locations of the centres have been sent to the selected taxi owners . Interviewees who have'not returned their questionnaires to the Transport Department are urged to do so no later than March 20.

For the meter-reading survey, the selected taxi owners should present their vehicles to the meter-reading centres on both occasions starting from tomorrow (Monday) to Friday (March 17), and from March 20 to 24, between 9.30 am and 12.30 pm or between 2 pm and 4.30 pm.

14

The spokesman urged the owners to participate in the survey to help the department assess the operating condition of the taxi trade.

"The information collected will be used for statistical analysis only,” he said.

End/Sunday, March 12, 1995

Fire safety message for students *****

Fire safety message has reached thousands of primary school students through a series of school talks organised by the Fire Services Department as part of this year's publicity programme on Fire Prevention Campaign.

Officers from the Fire Prevention Bureau have been visiting primary schools throughout the territory since last month to enhance students' awareness on fire prevention. By mid-July, they will have visited 330 schools.

Students were told the various ways to prevent fires which might lead to disastrous damage and what to do if there was an outbreak of fire. They were also asked to help convey the message to their families and neighbours.

The talks are well supported by schools and students.

The Fire Services Department always places great emphasis on public education on fire prevention. In addition to the school talks, it has produced 2,100 sets of a teaching kit for distribution to all primary schools in this year's campaign and organised fire station open days and exhibitions.

End/Sunday, March 12, 1995

DAILY INFORMATION BULLETIN

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

Monday, March 13,1995

Contents Page No.

HK supports China's membership in WTO............................. 1

Insurance Authority issues 1994 Annual Report today............... 3

S for S to attend Geneva Conference on Indochinese Refugees.. 5

Savings achieved in Government purchases.......................... 6

Prepare vegetables with care...................................... 7

HK's external trade statistics for January 1995 .................. 9

Air quality report for February.................................. 19

Tender for third issue of 5-year Exchange Fund Notes............  20

Five lots of land up for auction................................. 22

Archaeological study at Tung Chung............................... 23

Airmail services to Afghanistan resumed.......................... 24

Water storage figure............................................. 24

Fresh water cuts in Sham Shui Po and Yuen Long................... 25

Hong Kong Monetary Authority money market operations......... 25

1

HK supports China's membership in WTO *****

Hong Kong sees it particularly important to have China to come back into the multilateral system through World Trade Organisation (WTO) membership, the Secretary for Trade and Industry, Mr T H Chau, said today (Monday).

Speaking at a luncheon meeting of the Hong Kong Exporters' Association, Mr Chau said bringing trade disputes involving China into the multilateral system would be a major step, and a major improvement from Hong Kong's point of view.

Mr Chau said Hong Kong was a staunch supporter of free trade and it was also firmly behind the multilateral system. It sees the WTO as the cornerstone of the new order in world trade and views trade disputes between other economies in the light of the rules of the WTO.

"China is such a large player in world trade that it is unimaginable that she should be kept out of the system for much longer. The WTO cannot properly fulfil its function when the trading relationships of such a big player are not covered by it.

"Once China rejoins, it will not only be possible for China to challenge any trade measures imposed on her by other members, but Hong Kong, as well as any other member, will also be able to question the conformance of such measures with the agreed rules.

"A strong and effective integrated dispute settlement system is a cornerstone of the multilateral trading system. The WTO provides for improved and strengthened rules leading to more prompt and effective resolution of disputes.

"Upon accession to the GATT/WTO, China will have access to this system. China will then be able to defend herself against any trade measures which are not consistent with the WTO rules. China will then not be as easily threatened by unilateral sanctions during bilateral trade disputes.

2

"Clearly, Hong Kong too stands to gain from China's membership. We have therefore actively supported China's membership in the WTO and I look forward very much to China taking its rightful place in the WTO."

On any bilateral dispute between other trading partners, Mr Chau said Hong Kong did not have a direct role to play.

However, this does not mean that the Government should sit idly by.

"As we have done regularly in the past, we strive to minimise the impact which such disputes might have on our traders," Mr Chau said.

i f If *

"We see our role in providing early warnings; in monitoring the development of the dispute; in assessing the impact the dispute may have on Hong Kong; in clarifying with the governments concerned any administrative arrangements which they have in place regarding any trade measures; in giving timely advice to our traders of the measures which might be introduced; in assisting our traders to present their case to the governments concerned, either directly or through trade associations.

"When possible, we would also, by modifying our own rules and procedures, assist our traders to adjust their operations or manufacturing processes in order to avoid, I stress the word 'avoid', not 'circumvent', the impact of any such measures.

"This has been our role in the past and this will continue to be our role in the future."

End/Monday, March 13, 1995

3

Insurance Authority issues 1994 Annual Report today *****

Continued growth of insurance business, coupled with enhanced protection of the interests of policy holders, upholds Hong Kong's status as a major international insurance market.

This was stated in the Annual Report 1994 of the Office of the Commissioner of Insurance and the Registrar of the Occupational Retirement Schemes which was published today (Monday).

Statistics showed that total insurance premiums, comprising general business premiums of $17.1 billion and long term business premiums of $15.5 biilion, increased by 20 per cent to $32.6 billion in 1993.

Underwriting performance for general business turned around from a loss of $13 million in 1992 to a profit of $648 million in 1993. This was largely due to the remarkable underwriting profit of $560 million for motor business compared with a loss of $87 million in 1992.

On the other hand, total number of individual life policies grew by 13 per cent to reach 2.2 million. Contributions for retirement schemes business administered by life insurers also increased by 12 per cent to $4.3 billion.

With 229 authorised insurers in operation, Hong Kong has the highest number of insurers per capita in the world. Of these 229 insurers, 169 write general business, 41 specialise in long term business and the remaining 19 are composite insurers. There are 103 insurers incorporated in Hong Kong while most of the overseas insurers come from the UK and the USA.

To better protect the interests of policy holders, three bills were introduced into the Legislative Council in 1993. These bills were all enacted during 1994 and are now in different stages of implementation.

Following the enactment of these amendment bills, life insurers will be required to maintain more realistic solvency margins which relate to the risk base of their life insurance business instead of keeping a fixed solvency margin. This helps conform to international practice in the supervision of long term insurance business.

4

From May this year, insurers carrying on direct general business are required to maintain sufficient assets in Hong Kong to match their Hong Kong insurance liabilities.

Apart from the above, a legal framework supporting the self-regulation of insurance intermediaries was introduced. It defines the roles and responsibilities of insurance agents and brokers; and also prohibits anyone from operating as an insurance intermediary unless registered or approved pursuant to the Insurance Companies Ordinance.

As a continuous process to improve the prudential supervision of the insurance industry, the Insurance Companies (Amendment) Bill 1995 was gazetted recently. Its main object is to enable beneficial exchange of information between the Insurance Authority and other financial regulators, as well as transfer of general business from one insurer to another.

To respond to reinsurers' withdrawal of unlimited reinsurance cover for motor third party liability and employees' compensation insurance, the Motor Vehicles Insurance (Third Party Risks)(Amendment) Bill 1995 and Employees' Compensation (Amendment) Bill 1995 were gazetted in January this year. These two Bills seek to specify a minimum insurance requirement to replace the unlimited insurance cover currently required.

On the regulation of retirement schemes under the Occupational Retirement Schemes Ordinance (ORSO), one of the first duties of the Registrar of Occupational Retirement Schemes is to register all existing schemes applying for registration within a transitional period of two years ending on October 15, 1995.

Statistics on these schemes covering the period from the commencement of the ORSO on October 15, 1993 to December 31, 1994 are shown in the Report.

!?.'• • -> ' ” . '

The Registrar's Office received 1,869 applications out of which 91 per cent were defined contribution schemes while 9 per cent were defined benefit schemes.

5

It is expected that there are about 20,000 schemes operating in the territory which are required to be registered under the ORSO. The registration deadline is on October 15 this year. Thereafter, it will be an offence for an employer to operate an occupational retirement scheme without the necessary registration. Therefore, employers should act now and apply to register their schemes as soon as possible.

To improve the legislative framework, the Occupational Retirement Schemes (Amendment) Bill 1995 was proposed and gazetted on January 6 this year. Its main provisions are to refine the restricted investment requirement of section 27 of the ORSO and to enable the assets of participating schemes of a pooling agreement governed by trust to be pooled for diversification of investment and greater administrative efficiency.

The report in English is now on sale at $36 each at the Government Publications Centre at Low Block, Queensway Government Offices, 66 Queensway, Hong Kong. The Chinese version of the Report will be available shortly.

End/Monday, March 13, 1995

S for S to attend Geneva Conference on Indochinese Refugees *****

A Government spokesman confirmed today (Monday) that a meeting of the Steering Committee of the International Conference on Indochinese Refugees would be held in Geneva on March 16.

The Secretary for Security, Mr Peter Lai, and the Refugee Coordinator, Mr Brian Bresnihan, will attend the meeting as members of the United Kingdom delegation.

The spokesman added that prior to going to Geneva, Mr Lai would visit London where he will call on the Foreign Office and the Home Office.

End/Monday, March 13, 1995

6

Savings achieved in Government purchases

*****

The Government Supplies Department's negotiations with suppliers of goods and services have saved the public purse some $121 million last year.

A further $41 million has been earned through the sale of confiscated goods, surplus or unserviceable government stores and unclaimed parcels.

I '' •

The achievements were announced by the Director of Government Supplies, Mr Nigel Shipman, at a press conference today (Monday).

Total purchases last year amounted to $4,213 million, representing an increase of 61 per cent over the $2,621 million spent in the previous year.

"The purchases were at a record level in 1994," Mr Shipman said.

The substantial increase was attributable mainly to the equipment requirements for Government-owned facilities at the new airport at Chek Lap Kok, for which contracts worth $538 million were signed last year.

The five largest contracts were:

* Radar Data Processing and Display System, Flight Data Processing System and Simulator for the new airport at Chek Lap Kok, awarded to Raytheon for $204 million;

* Fuel oil for use on government vehicles, aircraft and vessels, awarded to China Resources Petroleum, Shell, Mobil and Caltex at a total cost of $177 million;

* Diets and food extras for Correctional Services Department and the Police, awarded to Asia Provisions Co for $146 million;

* Terminal Doppler Weather Radar System for Chek Lap Kok Airport, awarded to Raytheon for $100 million; and

* Traffic Radio System for the Traffic Police, awarded to Motorola for $70 million.

7

"We buy on a worldwide basis, mainly through open competitive tendering, to find the product that offers best value for money," Mr Shipman said.

"In certain circumstances negotiations were conducted with the recommended tenderer," he added.

Nearly 98 per cent of the products purchased were manufactured outside of Hong Kong.

The United States was the major source of supply. American goods worth $1,332 million were bought, accounting for 31.6 per cent of total purchases. The US has been the Hong Kong Government's leading supplier every year since 1986.

$982 million, or 23.3 per cent of total purchases, were bought from the European Union, with the United Kingdom and Germany being the two leading European suppliers.

Purchases from China have risen by 83 per cent to $341 million. China is the third largest single source of supply, accounting for 8.1 per cent of total purchases.

Purchases from China included fuel oils, steel pipes and fittings, textiles, paper products, water treatment chemicals and pharmaceuticals and other medical consumables.

End/Monday, March 13, 1995

Prepare vegetables with care * * * * *

Members of the public are today (Monday) urged to wash and blanch vegetables thoroughly before cooking, and to avoid making soup with vegetables.

The appeal was made by the Assistant Director of Health, Dr P Y Leung, following reports of six cases of food poisoning suspected to be related to pesticide contaminated vegetables.

8

Dr Leung said the Department of Health had stepped up checking and sampling at Man Kam To and retail outlets. The Shenzhen Commodity Inspection Bureau has been notified.

The six cases affected 14 persons in six families. Twelve persons were treated and discharged while two are still in hospital.

Dr Leung said five cases were related to matrimony vine and one case Chinese flowering cabbage. Of the five cases related to matrimony vine, all the patients consumed vegetable soup made from contaminated produce.

The food remnants in two cases, one involving matrimony vine and one Chinese flowering cabbage, were confirmed today to be contaminated with pesticide residue.

To reduce food poisoning by pesticide contaminated vegetables, members of the public are advised to take the following precautionary measures:

* do not patronise unlicensed hawkers;

* do not buy vegetables with an obvious strange smell;

* wash well before cooking;

* dip vegetables into clean water for one hour to allow pesticide to leach out;

* blanch in boiling water and pour away the water used for blanching as it may contain dissolved pesticides; and

* cook thoroughly before consumption.

End/Monday, March 13, 1995

9

HK's external trade statistics for January 1995 * * * * *

The Census and Statistics Department today (Monday) released detailed statistics on external trade with breakdown by country/territory and commodity for January 1995.

The value of re-exports continued to increase substantially, by 25% over a year earlier to $83.1 billion in January 1995.

Comparing January 1995 with January 1994, the value of re-exports to all main destinations showed increases of various magnitudes: Canada (+40%), Taiwan (+37%), the Netherlands (+35%), Japan (+34%), Singapore (+30%), South Korea (+29%), the United States (+28%), China (+17%), the United Kingdom (+15%) and Germany (+8.8%).

Changes in the value of Hong Kong's re-exports to the 10 main destinations are shown in Table 1.

As the external trade figures for a single month at the beginning of each year tend to be fluctuating due to effects of the Lunar New Year holidays, it is more meaningful to make comparisons over a longer period.

Comparing the three months ending January 1995 with the three months ending January 1994, the value of re-exports to most main destinations showed increases of various magnitudes: Singapore (+29%), Japan (+28%), Canada (+28%), the Netherlands (+24%), Taiwan (+21%), the United States (+18%), China (+16%), the United Kingdom (+9.9%) and South Korea (+7.2%).

However, the value of re-exports to Germany decreased marginally by 0.6%.

Table 2 shows changes in the value of re-exports of the 10 principal commodity divisions.

Comparing the three months ending January 1995 with the three months ending January 1994, increases of various magnitudes were recorded in the value of re-exports of most principal commodity divisions.

10

More notable increases were registered for miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $6.9 billion or 29%); telecommunications and sound recording and reproducing apparatus and equipment (by $6.8 billion or 31%); electrical machinery, apparatus and appliances, and electrical parts thereof (by $5.7 billion or 30%); textiles (by $3.6 billion or 20%); office machines and automatic data processing machines (by $3.1 billion or 36%); and photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $2.9 billion or 31%).

Over the same period, a decrease in the value of re-exports was recorded for clothing (by $1.3 billion or 5.5%).

The value of domestic exports in January 1995, at $18.2 billion, increased markedly by 18% over a year earlier.

Comparing January 1995 with January 1994, the value of domestic exports to all main destinations showed increases of various magnitudes: France (+66%), Japan (+47%), the Netherlands (+37%), Singapore (+29%), Canada (+26%), Germany (+17%), the United States (+16%), the United Kingdom (+15%), China (+7.3%) and Taiwan (+6.5%).

Changes in the value of domestic exports to the 10 main destinations are shown in Table 3.

Comparing the three months ending January 1995 with the three months ending January 1994, increases were recorded in the value of domestic exports to France (+42%), Japan (+36%), the Netherlands (+24%), Singapore (+11%), the United Kingdom (+7.1%), Canada (+7.0%), Germany (+4.7%) and the United States (+2.2%).

However, the value of domestic exports to Taiwan and China decreased by 4.4% and 1.4% respectively.

Table 4 shows changes in the value of domestic exports of the 10 principal commodity divisions.

11

Comparing the three months ending January 1995 with the three months ending January 1994, increases in the value of domestic exports were registered for photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $1.1 billion or 28%); clothing (by $1.0 billion or 5.5%); office machines and automatic data processing machines (by $854 million or 19%); and electrical machinery, apparatus and appliances, and electrical parts thereof (by $796 million or 14%);

Over the same period, decreases in the value of domestic exports were recorded for miscellaneous manufactured articles consisting mainly of jewellery, goldsmiths' and silversmiths' wares (by $251 million or 5.0%); telecommunications and sound recording and reproducing apparatus and equipment (by $157 million or 5.3%); and textiles (by $111 million or 2.9%).

The value of imports continued to increase substantially, by 31% over a year earlier to $104.9 billion in January 1995.

Changes in the value of imports from the 10 main suppliers are shown in Table 5.

Comparing January 1995 with January 1994, the value of imports from all main suppliers showed increases of various magnitudes: France (+171%), Singapore (+75%), the United States (+36%), the United Kingdom (+33%), Germany (+30%), Malaysia (+30%), South Korea (+28%), China (+28%), Taiwan (+21%) and Japan (+20%).

Comparing the three months ending January 1995 with the three months ending January 1994, the value of imports from all main suppliers showed increases of various magnitudes: France (+67%), Singapore (+41%), Malaysia (+32%), South Korea (+30%), the United Kingdom (+28%), Germany (+27%), Taiwan (+22%), Japan (+21%), the United States (+21%) and China (+21%).

Table 6 shows changes in the value of imports of the 10 principal commodity divisions.

Comparing the three months ending January 1995 with the three months ending January 1994, increases were recorded in the value of imports of all principal commodity divisions.

12

More notable increases were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $9.5 billion or 31%); telecommunications and sound recording and reproducing apparatus and equipment (by $6.1 billion or 23%); textiles (by $6.0 billion or 25%); miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $4.4 billion or 24%); road vehicles (by $3.9 billion or 50%); photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $3.7 billion or 30%); and office machines and automatic data processing machines (by $3.6 billion or 34%).

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.

A separate analysis of the volume and price movements of external trade for January 1995 will be released in early April 1995.

Detailed trade statistics analysed by commodity and by country/ territory are published in trade statistics reports.

The January 1995 issue of the "Hong Kong External Trade" with detailed analyses on the performance of Hong Kong's external trade in January 1995 will be available for sale at $122 per copy around March 22.

The report can be purchased either at 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 Information Services Department at French Mission Building, 1 Battery Path, Hong Kong on tel 2842 8802 and enquiries on trade statistics to the Census and Statistics Department on tel 2582 4915.

End/Monday, March 13, 1995

13

TABLE 1 : RE-EXPORTS TO TEN MAIN DESTINATION’S

DESTINATION JAN 1995 (HKD Mn.) JAN 95 OVER JAN 94 (’s CHANGE) NOV 94 TO JAN 95 (HKD Mn.) NOV 94 TO JAN 95 OVER NOV 93 TO JAN 94 (9i CHANGE)

CHINA 25,997 * 16.6 84,046 + 16.0

UNITED STATES 18,140 * 28.0 52,079 + 18.0

JAPAN 5,125 + 33.9 15,410 + 28.4

GERMANY 3,890 + 8.8 11,562 - 0.6

UNITED KINGDOM 2,399 * 15.0 7,243 ' + 9.9

TAIWAN 2,108 ♦ 36.8 6,385 + 20.9

SINGAPORE 1,955 + 30.1 5,951 + 29.3

SOUTH KOREA 1,446 + 29.1 4,251 + 7.2

NETHERLANDS 1,437 + 34.9 . 3,937 + 23.6

CANADA 1,403 + 39.8 3,789 + 28.1

14

TABLE 2 : RE-EXPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION (1 JAN 1995 4KD Mn.) JAN 95 OVER JAN 94 (5j CHANGE) NOV 94 TO JAN 95 (HKD Mn.) NOV 94 TO JAN 95 OVER NOV 93 TO JAN 94 (* CHANGE) •

MISCELLA.NEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 10,390 * 41.9 30,741 . * 28.7

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 9,818 * 41.4 29,040 * 30.6

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 7,932 + 43.7 24,613 ♦ 30.1

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 7,771 * 1.7 22,477 - 5.5

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 6,565 + 27.6 21,453 ♦ 19.9

FOOTWEAR 5,493 + 22.8 14,179 + 14.8

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 3,747 ♦ 35.9 12,294 ♦ 31.4

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 3,746 * 41.0 11,742 ♦ 36.2

TRAVEL GOODS, HANDBAGS AND SIMILAR CONTAINERS 3,153 ♦ 33.0 6,156 * 20.0

GENERAL INDUSTRIAL MACHINERY AND EQUIPMENT, AND MACHINE PARTS 2,041 + 36.1 5,600 * 15.4

15

TABLE 3 : DOMESTIC EXPORTS TO TEN MAIN DESTINATIONS

DESTINATION JAN 1995 (HKD Mn.) JAN 95 OVER JAN 94 (% CHANGE) NOV 94 TO JAN 95 (HKD Mn.) NOV 94 TO JAN 95 OVER NOV 93 TO JAN 94 (^ CHANGE)

UNITED STATES 4,560 ♦ 15.9 15,642 * 2.2

CHINA 4,440 ♦ 7.3 14,884 - 1.4

GERMANY 1,120 * 17.1 3,706 + 4.7

SINGAPORE 1,117 * 28.7 3,277 * 11.0

JAPAN 1,049 * 46.9 3,098 * 36.1

UNITED KINGDOM 853 ♦ 15.4 2,915 <■ 7.1

TAIWAN 532 + 6.5 1,612 - 4.4

NETHERLANDS 432 + 36.8 1,493 + 24.3

CANADA 378 * 25.7 1,153 + 7.0

FRANCE 285 + 66.4 916 + 41.6

16

TABLE 4 : DOMESTIC EXPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

JAN JAN 95 NOV 94 NOV 94 TO JAN 95

COMMODITY DIVISION 1995 OVER TO OVER

JAN 94 JAN 95 NOV 93 TO JAN 94

(HKD Mn.) (?6 CHANGE) (HKD Mn.) (% CHANGE)

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 5,691 + 16.8 19,572 5.5

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 2,148 + 38.0 6,579 + 13.8

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 1,729 + 40.3 5,240 + 19.5

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES) 1,521 + 10.4 4,737 - 5.0

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 1,500 + 36.4 4,947 +_ 27.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 1,090 1.9 3,675 - 2.9

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 892 + 6.4 2,784 - 5.3

PLASTICS IN PRIMARY FORMS 337 + 62.1 1,038 +■ 36.2

MANUFACTURES OF METALS 329 + 1.2 1,049 - 6.3

PAPER, PAPERBOARD, AND ARTICLES OF PAPER P’LP, OF PAPER OR OF PAPERBOARD 232 + 20.3 720 + 11.9

17

TABLE 5 : IMPORTS FROM TEN MAIN SUPPLIERS

SUPPLIER JAN 1995 (HKD Mn.) JAN 95 OVER JAN 94 CHANGE) NOV 94 TO JAN 95 (HKD Mn.) NOV 94 TO JAN 95 OVER NOV 93 TO JAN 94 (% CHANGE)

CHINA 41,769 * 27.5 126,674 + 20.8

JAPAN 13,908 + 20.0 48,615 + 21.1

TAIWAN 8,547 * 20.9 28,853 * 22.1

UNITED STATES 7,444 * 36.1 23,496 + 21.0

SINGAPORE 5,917 * 75.3 17,543 + 41.4

SOUTH KOREA 4,787 + 28.4 15,304 + 29.5

FRANCE 2,825 +171.1 5,635 + 67.2

GERMANY 2,184 + 29.8 7,633 + 26.7

UNITED KINGDOM 2,113 + 32.9 7,400 + 27.8

MALAYSIA 1,860 + 29.7 5,695 + 31.8 .

18

TABLE 6 : IMPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

JAN JAN 95 NOV 94 NOV 94 TO JAN 95

COMMODITY DIVISION 1995 OVER TO OVER

JAN 94 JAN 95 NOV 93 TO JAN 94

(HKD Mn.) (% CHANGE) (HKD Mn.) (°6 CHANGE)

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 12,201 * 43.2 39,799 * 31.4

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 11,121 * 30.5 33,065 + 22.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 9,043 ♦ 27.1 30,034 + 25.1

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 7,508 ♦ 8.2 23,814 + 1.1

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 6,980 * 26.5 22,656 + 24.1

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 4,817 * 42.4 15,840 ♦ 30.1

FOOTWEAR 4,692 + 26.0 12,736 ♦ 17.9

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 4,158 * 35.3 14,171 + 33.9

ROAD VEHICLES 3,191 * 33.5 11,708 ♦ 50.5

NON-METALLIC MINERAL MANUFACTURES 3,004 * 12.2 9,935 + 13.6

End/Monday, March 13, 1995

19

Air quality report for February *****

The Environmental Protection Department today (Monday) released air quality information for last month.

The purpose of the announcement is 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/Westem 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

* districts close to industrial areas.

The department currently monitors air quality continuously at eight stations, including the three mentioned. Short-term measurement exercises are also undertaken as and where the need arises.

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.

In February, no exceedances of the 24-hour Air Quality Objectives were measured at any of the three stations. As usual, levels of pollutants were highest at the street-level site of Mong Kok.

The highest levels of the pollutants NO2 and SO2 were measured on February 9, 12 and 13. These peaks were caused by low wind speeds which prevented locally produced pollutants from being blown away. Dust levels also peaked on those three days.

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.

20

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 Raymond Leung at 2594 6401.

End/Monday, March 13, 1995

Tender for third issue of 5-year Exchange Fund Notes *****

The Hong Kong Monetary Authority (HKMA)announces that the tender for the third issue of five-year Exchange Fund Notes will be held next Monday (March 20) for settlement the following day (Tuesday, March 21).

Similar to the previous issue, an amount of $500 million five-year notes will be on offer.

In addition to that, another $100 million will be held as reserve by the HKMA for supply to Market Makers in the secondary market.

- 21 -

The notes will mature on March 21, 2000 and will carry interest at the rate of 7.75 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 HKMA on 30th floor, 3 Garden Road, Hong Kong (or telephone 2878 8150).

Each tender must be for an amount of $50,000 or integral multiples thereof.

HONG KONG MONETARY AUTHORITY

EXCHANGE FUND NOTE PROGRAMME TENDER INFORMATION

Tender information for the third issue of 5-Year Exchange Fund Notes:

Issue Number : 5003

Tender Date and Time : Monday, March 20, 1995, 9.30 am to 10.30 am

Issue and Settlement Date : Tuesday, March 21, 1995 . ' ■ !eV

Amount on Offer : HK$500 million plus an additional HK$100 million as reserve stock for the Monetary Authority

Maturity : Five years G ■

Maturity Date : March 21, 2000

Interest Rate : 7.75% per annum payable semi-annually in arrears

Interest Payment Dates : Sept 21, 1995, Mar 21, 1996

Sept 23, 1996, Mar 21, 1997 Sept 22, 1997, Mar 23, 1998 Sept 21, 1998, Mar 22, 1999 Sept 21, 1999, Mar 21, 2000

22

Tender Amount

Other details

: Each tender must be for an amount of HK$5 0,000 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.

: Please see Information Memorandum published or approach Market Makers or Recognised Dealers.

End/Monday, March 13, 1995

Five lots of land up for auction *****

The Lands Department will auction five lots of land in Kowloon and the New Territories tomorrow (March 14).

The public auction will begin at 2.30 pm in the Concert Hall of the Hong Kong Cultural Centre, Tsim Sha Tsui.

The first lot, located at the junction of Sheung Yee Road and Wang Chiu Road, Kowloon Bay, has an area of 12,590 square metres. It is intended for (i) industrial or godown or both, or (ii) offices ancillary and directly related to an industrial operation, or (iii) any combination of (i) and (ii). The above specified uses will exclude any offensive trades.

Located in Cha Kwo Ling Road, Kwun Tong, the second lot has an area of 4,104 square metres for non-industrial use, excluding godown, hotel and residential, but including a multi-storey car park.

Covering an area of 4,991 square metres in Tuen Mun, the third lot is designated for non-industrial use, excluding godown, residential, hotel, service apartment and petrol-filling station, but including a multi-storey car park.

The fourth lot for private residential use at Fung Shing Street, Ngau Chi Wan, has an area of 13,999 square metres.

- .23 -

The remaining lot is situated at Area 90B, Ma On Shan, Sha Tin, having an area of 10,900 square metres for private residential use.

Attention News Editors:

‘ • •- * • ■ . *:’a

Your representatives are invited to cover the auction.

A press area will be designated. Photographers are advised to bring along telephoto lenses.

End/Monday, March 13, 1995

Archaeological study at Tung Chung *****

To enhance cultural exchange with Hong Kong's neighbouring countries, the Antiquities and Monuments Office (AMO) is conducting an archaeological study at Sha Tsui Tau, Tung Chung, Lantau, jointly with the General Office of the Shenzhen Committee for Protection of Antiquities and Monuments.

Since the project started late last month, numerous artefacts of the Tang Dynasty (618-907) have been discovered over the past weeks.

The Shenzhen team will be succeeded by another two teams from the ‘ Guangdong Institute of Cultural Relics and Archaeology and the Anthropology Department of the Zhong Shan University. The entire programme is scheduled to end in the middle of next month.

■ » • t •

Note to Editors:

A site visit to the Sha Tsui Tau site has been organised for the media on Thursday (March 16) when staff members of AMO will conduct a guided tour of the excavated area.

24

Media representatives wishing to join the visit are requested to call the Secretariat Press Office (tel no.: 2810 3188 or 2810 3354) to reserve a seat. Seats will be available on a first-come, first-served basis.

A launch taking the media to Tung Chung will leave Queen's Pier, Central, at 9.15 am sharp on Thursday. It will be back at Queen's Pier at about 2.30 pm.

End/Monday, March 13, 1995

Airmail services to Afghanistan resumed

*****

The Postmaster General, Mr Mike Pagliari, announces today (Monday) that all airmail services to Afghanistan, which have been suspended since January 21 last year, are now resumed.

End/Monday, March 13, 1995

Water storage figure

*****

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 68.1 per cent of capacity or 399.011 million cubic metres.

This time last year the reservoirs contained 397.664 million cubic metres of water, representing 67.9 per cent of capacity.

End/Monday, March 13, 1995

25

Fresh water cuts in Sham Shui Po and Yuen Long ♦ * * * *

Fresh water supply to some premises in Sham Shui Po and Yuen Long will be temporarily suspended from 11 pm on Wednesday (March 15) to 6 am the following day to facilitate water mains leakage detection.

... . .V’t'

All the premises bounded by Kiu Kiang Street, Cheung Sha Wan Road, Kweilin Street and Castle Peak Road in Sham Shui Po will be affected.

In Yuen Long, the affected areas will include Ma Tin Tsuen and Tai Shu Ha Road East.

End/Monday, March 13, 1995

Hong Kong Monetary Authority money market operations

*****

Time Cumulative change

$ million (hours) (Smillion)

Opening balance in the account 1,151 0930 +1,532

Closing balance in the account 1,229 1000 +1,532

Change attributable to : 1100 + 1,472

Money market activity +1,474 1200 +1,474

LAF today -1,396 1500 +1,474

1600 +1,474

LAF rate 4.25% bid/6.25% offer TWI 118.5 *-0.2* 13.3.95

26

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.96 14 months 2605 6.35 99.77 6.65

1 month 5.21 23 months 2702 7.50 101.09 7.01

3 months 5.77 28 months 3707 6.95 99.80 7.16

6 months 6.13 34 months 3801 8.00 101.92 7.37

12 months 6.54 57 months 5912 8.15 101.53 7.91

Total turnover of bills and bonds - $16,410 million

Closed March 13, 1995

End/Monday, March 13, 1995

DAILY INFORMATION BULLETIN

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

Tuesday, March 14,1995

Contents Page^o,

Transcript of Governor's media session.......................... 1

Govt provides infrastructure and support for business........... 2

Joint Liaison Group expert talks on air services................ 3

Appointments to the Hospital Authority Board.................... 4

Change to interest rate deregulation timetable.................. 6

New land will not flood market.................................. 8

TDD geared up to meet new challenges............................ 10

Three lots sold for $2,987 million.............................. 12

KMB fare rise................................................... 13

New Commission to consider views on remuneration package for Legislative Councillors............................................ 14

Direct Access Services extended to NT........................... 15

Safety officers play important role............................. 17

Hong Kong Monetary Authority tender results..................... 19

Hong Kong Monetary Authority money market operations............ 20

1

Transcript of Governor's media session *****

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after opening the Hong Kong Industrial Technology Centre this (Tuesday) afternoon:

Question: How about the interest rate? Exco decided to delay the relaxation of the interest rate agreement. Do you think it is at the expense of public?

Governor: No, I think the Monetary Authority is making a statement this afternoon, and what we always want to balance is the interests of competition and the public on the one hand, and the importance of moving prudently and cautiously on the other. The international environment at the moment, as you know, is a bit uncertain, and I think it's always right to be cautious in these things. But we've made good progress in deregulating the market already and I think we just want to move ahead on the basis of as much information as possible. One of the problems we've had is the statistics for January and February are pretty curious because of first of all, spending, happens in the runup to the Chinese New Year. And secondly, the defensive action that we're taking in relation to the Hong Kong dollar because of speculative activities earlier in the year. So there's no change in our fundamental approach to competition. But we do want to make sure that we proceed in a way which is sensible for the overall economy.

Question: So, is there any obstacles in your communication with the NCNA Hong Kong branch?

Governor: I don't feel there are any obstacles. But if the NCNA have any difficulties, I am sure they will let us know.

Question: Mr Patten, can I just refer back to your interest rate answer. Are you saying that the adjournment will help the balance to be achieved better at this stage?

Governor: Am I saying?

Question: Are you saying that the adjournment of that agreement to the interest rate will help the balance to be achieved at this stage?

2

Governor: What I was saying was what I was saying. What I was saying was that we've moved quite a distance already. I suppose in a sense covering about 99 per cent of the market. We want to move at every stage. Having taken proper account of the consequences of the changes that we've made, we do have to look very carefully at the international environment and everybody will know that in the last few months, with developments in Central America, with the instability of the US dollar and so on, it's important for us to be, I think, cautious but the Director of Banking and the Monetary Authority are making the position absolutely clear this afternoon.

Question: We just talked to Mr Zhou Nan about his complaint about your indirect notification about Mr Donald Tsang's appointment.

Governor: I really think there are very important issues that we have to deal with in Hong Kong but without manufacturing huge storms in tiny coffee cups. We proceeded, we behaved over Donald Tsang's appointment exactly as we behaved over every other announcement and every other appointment. And as you know perfectly well, whenever Mr Zhou Nan wishes to see me, shake my hand, talk to me, do anything, I am delighted to meet him. We've got lots we could say to him. And any time he likes to come and talk, we'll be very happy.

End/Tuesday, March 14, 1995

Govt provides infrastructure and support for business * * * * *

The Government is committed to providing the infrastructure and support services that allow good invention and good business to develop their full potential, the Governor, the Rt Hon Christopher Patten, said today (Tuesday).

Officiating at the opening ceremony of the Hong Kong Industrial Technology Centre, the Governor said innovation, the development and the application of new technologies, was a key to success in producing for local and international markets.

3

"Innovation has served us well. Our engineers, our designers and our entrepreneurs have manufactured products that compete confidently with the best in the world.

"But innovation constantly requires to be refreshed with inspiration and to be united with the business disciplines of planning, of financial monitoring and of marketing, if it is to maintain success and keep that competitive advantage which is so crucial," Mr Patten added.

The Government will, therefore, allocate $210 million from the Industrial Support Fund next month for projects that promote industrial and technological development.

Later this year, the Applied Research Council will be established to help promote technological research between Hong Kong and China.

End/Tuesday, March 14, 1995

Joint Liaison Group expert talks on air services

4c * * * *

The Sino-British Joint Liaison Group (JLG) will hold expert talks on air services in Hong Kong tomorrow (March 15).

The British team will be led by Mr Alan Paul, representative of the British side of the JLG, and the Chinese team by Mr Wang Weiyang, representative of the Chinese side of the JLG.

End/Tuesday, March 14, 1995

4

Appointments to the Hospital Authority Board *****

The Government announced today (Tuesday) the appointment of Mr Peter Woo as the new Chairman of the Hospital Authority Board with effect from April 1, 1995.

He will take over from Sir S Y Chung who has been Chairman of the Hospital Authority Board since December 1, 1990 and its precursor, the Provisional Hospital Authority Board since October 1, 1988.

Mr Woo, Chairman of Wheelock Wharf Group of Companies, has been a dedicated member for six years on the Provisional Hospital Authority Board and subsequently, the Hospital Authority Board. He has made substantial contribution to the work of the Authority and is actively involved in the work of its various committees.

He was Chairman of the Hospital Management Committee of the Provisional Hospital Authority. He is Chairman of the Organisation Development Committee which spearheaded the management reforms in all public hospitals and Chairman of the Hospital Governing Committee of the Prince of Wales Hospital.

The Secretary for Health and Welfare, Mrs Katherine Fok, today paid warm tribute to Sir S Y for his strong leadership and wisdom in steering the Hospital Authority Board through its initial years of operation.

She also recognised his significant achievements in laying a solid foundation for reforms in the public hospital system.

"Sir S Y's vision, wealth of experience and wise counsel have been instrumental in encouraging the staff working in the Hospital Authority to successfully introduce a patient- centred culture in all public hospitals and now all patients benefit from this new culture," she said.

Mrs Fok also welcomed the appointment of Mr Woo as the new Chairman. She said that his management expertise and commitment to the Hospital Authority made him eminently suitable for such an important position.

5

' Also appointed to the Board is Professor Chow Shew-ping, the new Dean of the Faculty of Medicine of the University of Hong Kong who succeeded Professor Ma Chung Ho-kei on March 1,1995.

Mrs Fok thanked Professor Ma for her invaluable advice in the work of the Hospital Authority, particularly in human resources management and the development of medical services.

Other new members appointed to the Board are Mrs Shelley Lau, the Deputy Secretary for Health and Welfare who will represent the Secretary for Health and Welfare; Miss Sally Aw Sian, the publisher of Sing Tao Newspapers Ltd.; and Mr John Chan Cho-chak, the Managing Director of Kowloon Motor Bus Company.

The appointment of Mr Woo and the three new members of the Hospital Authority will take effect from April 1, 1995 to March 31, 1997.

The following is a membership list of the Hospital Authority Board with effect from April 1, 1995 -

Mr WOO Kwong-ching Peter, JP (Chairman)

Dr CHIU Hin-kwong, OBE, JP

Dr LEUNG Nai-kong

Mrs LEUNG LAU Yau-fun Sophie, OBE, JP

Professor Felice LIEH MAK, OBE, JP

Professor LI Kwok-cheung Arthur

Mrs LING LI Ching-man Eleanor, OBE, JP

Professor CHOW Shew-ping

Mr Anthony F NEOH, QC, JP

Mr NG Shui-lai

Professor Kenneth J SELLICK

Professor David TODD, CBE, JP

Professor YOUNG Tse-tse Rosie, OBE, JP

Mr HO Mun-ka Michael

Mr WONG Hong-yuen Peter, OBE, JP

Dr LEONG Che-hung, OBE, JP

Mr S C PENNEY

Miss CHAN Ching-har Eliza

6

Mrs CHAN Wong-shui Pamela, JP

Miss Sally AW Sian, OBE, JP*

Mr John CHAN Cho-chak, CBE, LVO, JP* Chief Executive Officer, Hospital Authority Deputy Secretary for Health and Welfare* Director of Health

Administrator, Hospital Services Department

*New appointees

End/Tuesday, March 14, 1995

Change to interest rate deregulation timetable

>|c * * * $

The Hong Kong Monetary Authority (HKMA) has decided that the third phase of the deregulation of time deposits governed by the Interest Rate Rules (IRR) should be postponed to allow the HKMA and the Hong Kong Association of Banks (HKAB) more time to assess the impact of the first two phases of deregulation.

The third phase was originally scheduled to take place on April 1 and would have covered HK dollar time deposits fixed for more than 24 hours and up to and including seven days.

"The effects of the deferral on consumers should be put in perspective. Ninety-nine per cent of former IRR time deposits have already been deregulated well ahead of the timetable proposed by the Consumer Council," Deputy Chief Executive (Banking), Mr David Carse, said.

Time deposits covered by the third phase only account for 0.03 per cent of former IRR time deposits.

"It is sensible to be cautious in view of the more difficult external environment faced by banks," Mr Carse explained.

7

"World financial markets have become more volatile. Banks in Hong Kong are also having to cope with higher interest rates, slower growth in residential mortgage lending, and strong competition for time deposits."

The January results of HKMA's survey of 40 licensed banks indicate significant migration of deposits from current and savings accounts to the newly deregulated time deposits.

"However, the January figures will have been distorted by the sharp rise in interest rates to defend the HK dollar and by the rise in the note circulation ahead of the Chinese New Year.

"This uncertainty provides an additional reason to take longer to assess the situation," Mr Carse said.

"Taking these factors into account, we consider that the third phase should be deferred to allow more time to assess the impact of the first two phases of deregulation.

"Our intention is to conduct a full assessment in August/September, taking into account the half-year results of banks.

"We remain committed to deregulating time deposits unless further steps would result in instability in the monetary and banking system," Mr Carse said.

End/Tuesday, March 14, 1995

New land will not flood market *****

There is no question of flooding the market with new land from reclamation because the land designated for residential or commercial purposes will be produced gradually over a period of years and form a "land bank" to ensure there is a steady and continuous supply to meet demand, the Secretary for Planning, Environment and Lands, Mr Tony Eason, said today (Tuesday).

Speaking at a press conference to elaborate on issues within his schedule in the 1995/96 Budget, Mr Eason said reclamation had always been a major way of supplying much needed land for housing and other infrastructure developments both to improve the quality of life and to sustain economic growth.

"We approve reclamation projects only when we are fully satisfied with the results of very comprehensive studies to assess the feasibility, in particular the impact on the environment and marine traffic.

"Where necessary, we will make sure mitigation measures will be in place to minimise the impact," Mr Eason said.

He said the bulk of reclaimed land would be used to provide much-needed open space to improve the living environment, particularly in the old and congested areas.

"Of the 1,100 hectares which we plan to reclaim, about 790 hectares or 72 per cent will be used for open space, new roads and other community purposes.

"Only 27 per cent will be used for commercial or residential developments."

On schemes currently being implemented, he noted that almost 40 per cent of the new land at the West Kowloon Reclamation had been set aside for the Airport Railway, the West Kowloon Expressway and other new roads connecting the Western Harbour Crossing while the commercial or residential development would only take up 26 per cent.

9

The Central and Wan Chai Reclamation will produce land for the Hong Kong Terminal of the Airport Railway, the extension of the Convention and Exhibition Centre and a new road to relieve traffic congestion. Only 23 per cent of the new land would be used for commercial or residential purposes.

While disputing a suggestion that the harbour was shrinking, the Secretary noted that the harbour had already expanded westwards very considerably.

"Beyond the container port in Kwai Chung, we will be developing a new container port on Northeast Lantau which will eventually have four terminals and 17 berths and providing new cargo-handling facilities at Tuen Mun for the fast-growing river trade."

On the environment, Mr Eason said the Government would introduce further measures to combat air and noise pollution in the coming year.

These will include cleaner diesel with lower sulphur content, more stringent vehicle emission standards for new vehicles with effect from April 1, a proposed scheme to require all light duty diesel vehicles to be replaced by petrol vehicles using catalytic converters and unleaded petrol, programmes to control emission of in-use vehicles through higher penalties for smoky vehicles and a comprehensive vehicle inspection and maintenance programme, regulations to control air pollution by construction dust and open burning of wastes, possible legislation to impose noise emission standards on new vehicles and to control false activation of car burglar alarms and noisy construction works.

A consultancy study will soon be commissioned to develop a comprehensive management plan for Mai Po and Inner Deep Bay following the earlier announcement of the Government's intention to seek its listing as a Ramsar site and the Marine Parks Bill has been submitted to the Legislative Council for consideration, Mr Eason said.

"All this show that we are making good progress in making Hong Kong a cleaner and greener place to live in," he said.

End/Tuesday, March 14, 1995

10

TDD geared up to meet new challenges

* * * * *

The Territory Development Department (TDD) is well prepared to meet new challenges ahead with continuous quest for excellence in providing a better living environment for the people of Hong Kong, the department's director, Mr Lee Shing-see, said today (Tuesday).

Speaking at a meet-the-media session, he also said projects undertaken by his department achieved good progress last year.

Reviewing the work of the TDD in the past year, Mr Lee noted that his department's accomplishment in the new town programme could be seen from the success of the more mature new towns and the continuous expansion of the programme in a fast pace to cope with the increase in population.

At present, over 2.6 million people, representing over 40 per cent of the total population, are living in new towns.

"Our target is to accommodate about 3.6 million people upon full completion of the new town programme," Mr Lee noted.

Apart from developing new towns, Mr Lee said his department was also given the responsibility to undertake new major developments in the urban areas based on the department's new town experience.

He pointed out that the initial phases of the reclamation in West Kowloon, Central and Wan Chai were taking shape to various extent.

Mr Lee said the West Kowloon Reclamation Project was the largest reclamation in the urban area ever undertaken by the department, involving production of about 340 hectares of new land for various uses.

"By now, over 90 per cent of the reclamation area has been formed and the immediate follow-on works, such as the West Kowloon Expressway, the Airport Railway and the Western Harbour Crossing, are in good progress," he said.

11

On Hong Kong Island, Mr Lee noted that five engineering contracts had so far been let for the Central and Wan Chai Reclamation project.

"These include Central Reclamation Phase I where the Hong Kong Station of the Airport Railway will be located; the Central Reclamation Phase II (or reclamation of the Tamar Basin) to provide land for expansion of the commercial area; and Wan Chai Reclamation Phase I for the Convention and Exhibition Centre extension," he said.

In the New Territories, Mr Lee said major drainage improvement projects, such as construction of the Yuen Long-Kam Tin Main Drainage Channel, had commenced.

"In Tseung Kwan O, reclamation of the future town centre area is in good progress, and about 25 per cent of the four million cubic metres of the fill required have been placed," he said.

For Tung Chung new town development, Mr Lee continued, site formation works were progressing well and population intake for the first phase development was targeted to take place in 1997 to tie in with the opening of the new airport.

For major projects under planning and design, Mr Lee said land would be formed in the Tsuen Wan Bay Further Reclamation and the Tin Shui Wai Reserve Zone for residential and community facilities uses.

"The Tuen Mun Port Development will commence work soon which will include provisions for River Trade Terminals and special industries etc.

"The initial phase of the territory's third Industrial Estate in Tseung Kwan O is ready to receive developments, and infrastructure works for the remaining phase will also commence shortly on the land already formed.

"In the urban area, the Green Island feasibility study has been completed," Mr Lee added.

He further pointed out that approvals were being sought from the Finance Committee for two other major feasibility studies in Kowloon.

12

"The South East Kowloon Development will look into the development potential of the existing airport and the adjoining areas after the airport is relocated to Chek Lap Kok.

"The Kowloon Point Development which covers an area of about 60 hectares will look at solutions for provision of expansion areas to Tsim Sha Tsui taking into account planning, traffic and transport requirements," Mr Lee explained.

The overall works expenditure of the TDD last year, including new towns and urban developments, amounted to about $5.5 billion.

End/Tuesday, March 14, 1995

Three lots sold for $2,987 million *****

Three lots.of Government land were sold for a total of $2,987 million at a public land auction held by the Lands Department this (Tuesday) afternoon.

Two lots - one of 12,590 square metres at the junction of Sheung Yee Road and Wang Chiu Road, Kowloon Bay, for industrial or godown purposes, and the other of 4,104 square metres in Cha Kwo Ling Road, Kwun Tong, for non-industrial purpose - were withdrawn because no biddings were made for the opening prices of $1,500 million and $480 million respectively.

Of the lots sold, the first one, located in Fung Shing Street, Ngau Chi Wan, was sold to Goodterm Limited at $1,610 million, with bidding opening at $1,300 million. It has an area of 13,999 square metres for private residential use. The developer has to complete a gross floor area of not less than 39,240 square metres on or before March 31, 1999.

The second lot in Area 90B, Ma On Shan, was bought by Great Cheer Development Limited at $1,240 million, with bidding opening at $980 million.

With an area of 10,900 square metres, this lot is also for private residential use.

13

The developer has to complete a gross floor area of not less than 32,700 square metres on or before September 30, 1999.

The third lot situated in Tuen Mun was bought by Sum Lung Investment Company Limited at $137 million, with bidding opening at $75 million. It has an area of 4,991 square metres for non-industrial purposes.

The developer has to complete a gross floor area of not less than 28,450 square metres on or before March 31, 1999.

Held in the Concert Hall of the Hong Kong Cultural Centre, Tsim Sha Tsui, the auction was conducted by Government Land Agent, Mr Francis Hay.

End/Tuesday, March 14, 1995

KMB fare rise *****

The Governor-in-Council today (Tuesday) approved a weighted average of a seven per cent fare rise for Kowloon Motor Bus to take effect from April 2, 1995. Cross-harbour fares will remain unchanged and fares on local routes will go up by about eight per cent.

On average all local routes have roughly the same rate of increase although fares on some short distance routes will have a slightly higher rate of increase due to the need to round off to the nearest 10 cents.

A Government spokesman said as a result of the fare rise, eight per cent of the passengers would not be affected while 73 per cent of the passengers would pay only 10 cents to 30 cents more per trip and 17.5 per cent of the passengers would pay 40 cents and 50 cents more per trip.

"The impact of the increase on general inflation is minimal,” he said.

The spokesman said it was necessary that fares should be pitched at a level which was both affordable to the public and provided a reasonable return to the bus operator.

14

"An increase of seven per cent is reasonable bearing in mind that KMB's operating costs rose by 15.8 per cent in 1994 and are expected to increase by 12.3 per cent in 1995.

"It is important that the operator be provided with the necessary incentive to invest and improve services," he said.

The spokesman said K.MB was providing a high quality and satisfactory service to the public and was actively seeking ways to improve its services further to meet passengers' demand and expectations.

"The company has also made a significant effort to reduce costs by rationalising its services and streamlining its operations," he said.

He said KMB had proposed to introduce nine new routes and implement 108 service improvement proposals in the next two years.

End/Tuesday, March 14, 1995

New Commission to consider views on remuneration package for Legislative Councillors *****

Following the publication of the Report of the Commission on Remuneration for Members of the Legislative Council last September, the Administration has received views and comments from Legislative Councillors and various interested groups.

A Government spokesman today (Tuesday) said these comments would be referred to the new Commission on Remuneration for Members of the Legislative Council for consideration.

"We shall ask the Commission to consider all the comments received and to advise whether any changes should be made to the recommendations in the report produced by the former Commission last year," the spokesman added.

15

"The new Commission's recommendations will then be considered by the Executive Council."

The new Commission's chairman is Professor Wang Gungwu. Its members are Mr Cheng Hon-kwan, Mr Christopher Cheng Wai-chee, Dr Thomas Leung Kwok-fai, Miss Gladys Li Chi-hei and Mr Lawrence Lam Yin-ming.

The Commission will hold its first meeting later this month.

End/Tuesday, March 14, 1995

Direct Access Services extended to NT *****

The Land Registrar, Mr Kenneth Pang, today (Tuesday) announced the Land Registry's latest initiative of extending the computerised land search facility, known as the Direct Access Services (DAS), to cover the New Territories land registers.

"Starting from next week, DAS users can carry out on-line search of the land registers in Tsuen Wan, and later on in all other districts of the New Territories.

"The extension of DAS to the New Territories is made possible following the computerisation of the New Territories land registers on a district- bydistrict basis. We aim at having all the New Territories land registers fully computerised in two years' time," Mr Pang added.

At present, only the land registers in the Urban Land Registry are computerised and available for on-line search through DAS. The DAS is now being extended to the New Territories land registers in phases.

Initially, Town Lot land registers are to be computerised on a registry-by-registry basis, starting with Tsuen Wan and followed by Tuen Mun, Yuen Long, and other land registries.

16

By August this year, all the Town Lot land registers in the New Territories will be computerised and available for search through DAS.

All the New Territories land registers, including Demarcation District (DD) and Survey District (SD) Lots, will be fully computerised and accessible through the DAS by early 1997.

Mr Pang said: "Our DAS subscribers are very pleased with our existing DAS services for the Urban land registers and would certainly welcome the extension of this service to the New Territories.

"In two years' time, users can search land register information in respect of any properties in the territory by using their personal computers in their offices."

The DAS is a facility which enables customers to make on-line searches of the computerised land registers through their own computer without calling at the Land Registry.

The information on the property will appear on their screens and can be printed from their own printer upon keying in the address or lot number of the property they want to search.

Users can also request for copies of land records through the DAS network.

Details of the DAS facilities, charges, equipment requirement and application procedure, etc can be obtained from the Land Registry DAS Centre on tel 2524 1717. A brochure is also available on request.

The DAS is provided through the IBM Information Network. An introductory workshop will be organised by IBM on Friday (March 17).

Demonstration will be held and brochures will also be available at Telecom CSL Shops in Prince's Building, Central and at Middle Road, Tsim Sha Tsui from March 17 to 24.

End/Tuesday, March 14, 1995

17 -

Safety officers play important role ♦ * ♦ ♦ *

A steering group chaired by the Secretary for Education and Manpower is conducting a comprehensive review on industrial safety in Hong Kong as an indication of the Government's commitment to raise the standards of safety and health at work.

This was revealed today (Tuesday) by the Commissioner for Labour, Mr Stephen Ip, at the presentation ceremony of the 1995 Safety Officers of the Year Award Scheme.

The steering group will complete the review and publish a public consultation paper in July.

The Award Scheme aimed at commending outstanding safety officers for their good work in improving industrial safety and health. It also encouraged them to make continuous efforts to make Hong Kong a safer working place.

Mr Ip said safety officers played a very important role in formulating and implementing a positive safety policy in the organisations they served.

"They have to advise their employers on measures necessary to ensure that the workplace is safe and a safe system of work is in place.

"To this end, they have to perform safety inspections to identify areas for improvement and carry out safety audits to ensure that the required safety and health standards are met.

"However, to be successful, they have to help build up a safety culture at all levels, from the managerial staff down to the workers on the work sites. Surely, this is not an easy job, but it is challenging and rewarding," Mr Ip said.

Seventeen nominations were received for this year's Award Scheme and the five winners are :

18 -

* Mr Chung Wai-keung, Kowloon-Canton Railway Corporation

* Mr Kwok Wai-yin, Airport Platform Contractors Joint Venture

* Mr Lee Chi-yung, The Shell Companies in Greater China

* Mr Tsang Kin-cheong, Nishimatsu Construction Co. Ltd.

* Mr Wong Ka-fung, Kowloon-Canton Railway Corporation

Mr Ip congratulated the winners and urged all safety practitioners to update their knowledge from time to time.

He hoped they would attend refresher training courses and participate in workshops and seminars like the one held this morning in which informative and enlightening talks were given by Mr Harry K C Wong from Singapore and Mr Phil Percival from Australia.

Mr Ip thanked the two overseas guests and the panel of judges comprising the Secretary for Works, Mr James Blake, Mr Tam Yiu-chung, Mr K Y Tongson, Mr Chan Ka-kui and Mr Kwan Kon-wah.

He also thanked the organisers and co- organisers for their hard work in making the scheme a success.

The scheme is organised by the Labour Department, Occupational Safety and Health Council and Working Committee on Symposium on Safety and Health Management.

The co-organisers are Hong Kong Occupational Safety and Health Association, Hong Kong Industrial Safety Association, Society of Registered Safety Officers and Construction Industry Safety Management Association.

End/Tuesday, March 14, 1995

19 -

Hong Kong Monetary Authority tender results

*****


Tender date 14 Mar 95 14 Mar 95

Paper on offer EF bills EF bills

Issue number Q511 H560

Amount applied HK$6,260 MN HK$3,250 MN

Amount allotted HK$ 1,500 MN HK$800 MN

Average yield accepted 5.72 PCT 6.07 PCT

Highest yield accepted 5.74 PCT 6.09 PCT

Pro rata ratio About 41 PCT About 35 PCT

Average tender yield 5.79 PCT 6.14 PCT

Hong Kong Monetary Authority

• • •-’ ■ . » • ■ .• * * .

Tenders to be held in the week beginning March 20, 1995

Tender date 20 Mar 95 21 Mar 95 •A • ■ 21 Mar 95

Paper on offer EF Notes EF bills EF bills

Issue number 5003 Q512 Y587

Issue date 21 Mar 95 22 Mar 95 22 Mar 95

Maturity 21 Mar 2000 21 Jun 95 20 Mar 96

date

20 -

Tenor 5 Years 91 days 364 days

Amount on HKS500+100MN HK$l,500MN+300MN HK$500+150MN offer

Coupon 7.75 PCT

End/Tuesday, March 14, 1995

Hong Kong Monetary Authority money market operations

*****

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

Opening balance in the account 1,229 0930 +1,445

Closing balance in the account 2,569 1000 +1,445

Change attributable to : 1100 +1,456

Money market activity +1,465 1200 +1,456

LAF today -125 1500 +1,465

1600 +1,465

LAF rate 4.25% bid/6.25% offer TWI 118.5 *+0.0* 14.3.95

V

- 21 -

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.06 14 months 2605 6.35 99.89 6.54

1 month 5.23 23 months 2702 7.50 101.28 6.90

3 months 5.73 28 months 3707 6.95 100.04 7.05

6 months 6.05 34 months 3801 8.00 102.17 7.27

12 months 6.42 57 months 5912 8.15 101.98 7.79

Total turnover of bills and bonds - $26,770 million

Closed March 14, 1995

End/Tuesday, March 14, 1995

DAILY INFORMATION BULLETIN

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

Wednesday, March 15,1995

Contents Page No*

CFA legislation implements Sino-British agreement........................ 1

Transcript of the Governor’s media session............................... 2

Governor tours Central and Western District.............................. 5

Increase in penalties against copyright piracy........................... 6

Stadium to be put to optimal use......................................... 8

More information on Hong Kong Stadium.................................... 9

4,035 agreements lodged with Land Registry in February.................. 10

Appeal to rooftop occupants to register with Housing Department..... 11

Early intervention helps disabled children in studies................... 12

Yuen Long lot to let.................................................... 13

Flushing water cut in Ma On Shan.................................... 13

Hong Kong Monetary Authority money market operations.................... 14

1

CFA legislation implements Sino-British agreement ♦ ♦ ♦ ♦ ♦

The Court of Final Appeal (CFA) is an element and part of the architecture of the rule of law which everybody wants to see in place, the Governor, the Rt Hon Christopher Patten, said today (Wednesday).

In reply to questions by reporters after visiting Central and Western Districts this afternoon, the Governor said that one of the things that people were most concerned about in Hong Kong was the rule of law and the continuance of the rule of law after 1997.

i

"It's the thing which perhaps more than anything else affects people's daily life," he added.

"It's about whether we can continue to be a decent, civilised, successful society, living in dignity and freedom and openness.

"So I hope that we can get on with it and I hope that it doesn't become an issue about which there are arguments and rows."

The Governor pointed out that there was an agreement between China and Britain to settop a Court of Final Appeal and that a drafted legislation, which faithfully implemented that agreement, was given to the Chinese side last May.

As a result of the consultations with the legal profession in Hong Kong, he said some technical adjustments were passed to the Chinese side in January.

’’Indeed I suspect that before too long, the community is going to start to press us to get on with things,” he said.

’’But we wish to go forward and I assume that we will go forward in cooperation because nobody has yet pointed out in any way how our legislation fails to implement the 1991 agreement.”

End/Wednesday, March 15,1995

2

Transcript of the Governor's media session *****

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting Central and Western Districts today (Wednesday).

Governor: I've enjoyed another visit to Central and Western. Since I am a resident in Central and Western maybe over doing it to say one of my visits because I live here. Obviously the two issues which I think are most concerning the District Board are, first of all, the provision of services for the elderly. We're seeing a growing number of people retired in the community as a whole. But I think there’s a particularly large number of retired people in Central and Western, and there are strong arguments for improving the health facilities for the old in the district which we are going to look at. Secondly, obviously the impact of all the building that's going on, or the infrastructure development, the Central Reclamation, the Western Harbour Crossing and so on, creates problems for the community and we've got to work with the District Board in order to try to address those problems. So, it's a useful visit. I am very grateful to the District Board for their hospitality. And now you want to ask lots of questions about Central and Western.

Question: Governor Patten, I want to ask you with just a little bit more than two years until the hand-over to China, there has been some descriptions of you recently as something of a lame duck, and I want to know how you respond to that?

Governor: I think it's truly difficult to be described both as a lame duck and that somebody who's making too many waves, perhaps by flapping one's limbs too vigorously. I don't think you can be both at the same time. And the truth of the matter is that we are still setting the agenda here in Hong Kong. People have talked about the administration being a lame duck since the mid-1980s. It hasn't been a charge which anybody has seriously levelled for the last two or three years. And as far as we are concerned, we're going to go on taking decisions and go on governing in the interest of the people of Hong Kong until June 30, 1997. That's what I think people in the administration want us to do, and that's what I think the community expects us to do. And I don't think that anything that's happened, whether the outcome of the District Board elections or the outcome of the Municipal Council elections the other day, suggest that there's too much questioning of that approach. Clearly, the closer we get to 1997, the more people are going to look for reassurance about Hong Kong's future to the next sovereign. I can give reassurance about all that I am going to do between now until 1997 to strengthen the foundations of Hong Kong's free and open and successful society. But it's for others in deeds as well as words to give reassurance for the future. That's an inevitable consequence over the next couple of years. But it's not going to make this administration a lame duck or even a vaguely hobbling duck.

3

Question: Can you comment on whether you think that the penalties for child abuses are adequate in light of the comments made by a District Court Judge following the conviction of the baby-sitter yesterday?

Governor: It's a subject which I know there's increasing concern about, and the subject which we're looking at in the administration, both the penalties for child abuse and the pattern of child abuse across the community, and the ways in which in the courts we deal with those who are accused of child abuse, for example, looking at the possibilities for taking evidence from children on video tape and using it in the court. So they're not expected to be in the court with the parent who may be accused of abuse. Those are the sort of things we have to look at and we also have to consider the role of social work in providing a caring infrastructure for those who are abused. They are all extremely difficult issues. They are issues about which I know the community is extremely concerned because of one or two recent cases, and it's a subject which we are addressing as actively as possible.

Question: Should there be a review of the penalties?

Governor: We are looking at far wider than just the penalties. We are looking at the whole way in which the problem is tackled by the community.

Question: Mr Patten, Donald Tsang, the next Financial Secretary of Hong Kong was not so welcomed by the Chinese officials at his trip in Beijing in the past few days. Do you agree that a lot has to be done by the Government so as to foster understanding and communication with the Chinese Government?

Governor: I am not sure whether what you say is true. He's there as a guest of the Hong Kong and Macau Affairs Office. It's one of a regular series of visits in both directions. I think there arc eight of those visits planned this year, four in each direction. One involving Chinese officials is taking place at this moment here in Hong Kong. And what I can promise you is any Chinese official who visits Hong Kong will be treated with the maximum courtesy and will be treated as one should treat a guest and someone with whom one wishes to work. I always said that we would like Director Lu Ping to come to Hong Kong more frequently, and we would always want to treat him as a welcomed guest and visitor. That is the way we do things in Hong Kong and 1 hope others will behave in an equally civilised way.

Question: Governor, about your excellence in dancing, would you keep your tangle with the Chinese side about CFA until the last minute before 97, or are you going to have some solo until the Easter to hand in the bill?

4

Governor: That gets the prize for the best question so far of 1995, though it runs the danger of abusing metaphor, to quote Lord Palmerstone. First of all, as far as dancing is concerned, I would clearly benefit from very many lessons from the excellent instructors at the St James Settlement Centre. Seriously, we’re talking about a dance which has already begun. In 1991, there was an agreement between China and Britain to set up a Court of Final Appeal. That’s agreed. We’ve drafted legislation which we gave to the Chinese side last May, last May, which faithfully implements that agreement. We've made some technical adjustments as a result of the consultations that we had with the legal profession in Hong Kong which were passed to the Chinese side in January. Now, with the best will in the world, nobody can accuse us, having passed over the bill last May, of trying to rush anybody. Indeed I suspect that before too long, the community is going to start to press us to get on with things. But we wish to go forward and I assume that we will go forward in co-operation, because nobody has yet pointed out in any way how our legislation fails to implement the 1991 agreement. Ask Chinese side in what way the bill that they’ve had since last May fails to implement an agreement which both parties entered into presumably sincerely. We had the word ’’sincere” used very often by one or two propaganda agencies. Here is a good opportunity for a show of sincerity and I hope it will be taken. Why? Because you know and 1 know that one of the things that people are most concerned about here in Hong Kong is the rule of law and the continuance of the rule of law after 1997. It’s the thing which perhaps more than anything else affects people's daily life, .. abstraction. It's about whether we can continue with the Chinese side?

What I will do in consultation with my senior officials and I hope, carrying the Legislative Council as far as possible with me, what I will do is try to set up a Court of Final Appeal and I hope that we have the active co-operation of Chinese officials in doing that. Frankly, the sort of questions that you ask me should be put to Chinese officials. Why should anyone, anyone want to delay the setting up of this Court? One more question.

Question: Is the time constraint factor, is coming to the new Legco elected in September will create uncertainty so better table the bill before the end of this legal session?

Governor: There are additional considerations. Usually, you can allow legislation which is tabled in one session but not completed to spill over into the following legislative session but when a legislature finishes, when it finishes its term, you can't do that. So you either have to legislate before the end of this Legislative Council session or you have to start in the autumn. Everybody knows the real constraints we have in terms of time in setting the Court up. There's no secret about that. We're not making it up. Getting the judges, getting the buildings established, getting the personnel, getting everything organised in order to get this Court set up in time, all that takes time. 1 wish it didn't.

5

Question: Will you be doing....so that you can obtain the mandate from the Chinese side so that you can set up the Court of Final Appeal before 1997?

Governor: With great respect, what do you think we've been doing since May?

Question: Something more Substantial-

Governor: We have been doing very substantial thing like giving them a copy of the bill.

Question: The Stadium noise report pointed out that the Secretary of Culture and Recreation Branch should be responsible for the Stadium noise. What do you think about that?

Governor: I'd like to read the report before I comment on it.

Question: Can you comment on yesterday's land auction because it seems that the policy on land auction should be reviewed as now the residential land is in great demand but the industrial land in reverse is not that....

Governor: I agree with what the Secretary for Planning, Environment and Land said. Thank you very much indeed.

End/Wednesday, March 15, 1995

Governor tours Central and Western District *****

The Governor, the Rt Hon Christopher Patten, toured Central and Western district this (Wednesday) afternoon to get a better understanding of the district.

Mr Patten first visited St Paul's College Primary School in Western where he was briefed by the principal on the activity approach the school adopted in teaching.

This was followed by a browse along Wing Kut Street during which the Governor showed great interest in the imitation jewellery shops there.

The Governor then went to the St James Settlement Multi-service Centre for the Elderly at Sheung Wan Urban Council Complex to see for himself the facilities provided to the elderly.

6

Before concluding his visit, the Governor met district board members and community leaders at a reception at the City Hall Restaurant.

The Governor was accompanied by Mrs Patten, the Director of Home Affairs, Mr Joseph Wong, the Central and Western District Officer, Mr Philip Yung, and the District Board Chairman, Mr Yuen Bun-keung.

End/Wednesday, March 15, 1995

Increase in penalties against copyright piracy ♦ * * * *

The Secretary for Trade and Industry, Mr T H Chau, will introduce the Copyright (Amendment) Bill 1995 into the Legislative Council at the sitting on March 29 to increase the penalties against copyright piracy.

The new maximum penalties for the possession of infringing copies of copyright works for trade and business purposes will be a fine of $25,000 per copy, and two-year imprisonment.

"They represent a substantial increase from the existing penalties of a fine of only $1,000 per copy and 12 months’ imprisonment,” Mr Chau said.

Mr Chau said the existing penalties have not been adjusted for a long time and are among the lowest in Asia.

"Clearly the existing penalties have failed to provide sufficient deterrent against copyright piracy. Wc need to increase the penalties substantially to demonstrate to both the local and international communities our determination to combat copyright piracy," Mr Chau said.

• "Copyright piracy is a serious offence. It is damaging Hong Kong's economic interests and international reputation," Mr Chau said.

"Wc must not let the copyright pirates prejudice unfairly the legitimate interests of the copyright owners, or damage Hong Kong's hard-won international reputation as one of the world's leading business centres."

7

Mr Chau added that apart from increasing the penalties for first conviction, the Amendment Bill would introduce a second tier of higher penalties for repeated offenders.

’’Copyright piracy is a serious crime and repeated offenders will have to be punished more severely,” he said.

’’The penalties for repeated offenders will be a fine of $50,000 per infringing copy and four-year imprisonment on indictment."

The penalties for possession of a plate for manufacturing infringing copyright works will also be increased substantially from a fine of $50,000 and imprisonment of two years to a fine of $250,000 and imprisonment of four years on first conviction.

"Penalties for repeated offenders will be doubled," Mr Chau said.

The Amendment Bill will also provide that persons of a body corporate or a partnership found culpable of the infringement offence will be liable to the same penalties.

This seeks to plug an existing loophole in the Copyright Ordinance which does not catch the management of a body corporate or a partnership engaged in copyright infringing activities.

"The Customs and Excise Department will continue with their vigorous enforcement efforts against copyright piracy. Additional resources will be allocated to the department to create some 20 new posts in its Intellectual Property Investigation Bureau," Mr Chau said.

"The department will continue to strengthen its intelligence network and to target enforcement action against syndicates at border control points as well as at the wholesale level."

End/Wednesday, March 15, 1995

8

Stadium to be put to optimal use

*****

The Secretary for Recreation and Culture. Mr James So, responded to the comments made by the Commissioner for Administrative Complaints in his investigation report which was published today (Wednesday), on noise nuisance caused by pop concerts held at the Hong Kong Stadium

He said the Government had taken note of the overall observations and recommendation in the report. However, he emphasised that it was important to look ahead and work towards a satisfactory solution to the noise problem to ensure that the stadium was put to optimal use.

Although the stadium is meant primarily as a sports venue, it is also intended for other suitable community and mass entertainment events

"We understand from the Urban Council that so far some 49 functions, including 29 sporting events, have been held at the stadium, attracting a total attendance of over 931,000." Mr So said.

"In addition, a major international rugby tournament, the world famous Sevens, will be held later this month and another 36 events have already been scheduled for the period between April and December this year

"This shows that the stadium has proven to be very popular. 1 am sure the Urban Council will be working to build on this to make the best possible use of the wonderful facilities it offers." he maintained.

Mr So also expressed confidence that a satisfactory solution would be found, and that the stadium would be restored to its originally intended purposes, that is for both sporting and mass entertainment events, for the benefit of the whole community.

End/Wednesday, March 15. 1995

9

More information on Hong Kong Stadium ♦ ♦ ♦ ♦ ♦

In response to the three specific points raised by the Commissioner for Administrative Complaints in his investigation report on the noise nuisance at the Hong Kong Stadium this (Wednesday) morning, the Secretary for Recreation and Culture, Mr James So, gave the following-additional information:

HK Stadium as a Government project

Although the reconstruction of the Stadium was regarded as a Government project, it was quite different from other normal Government projects under the Public Works Programme. Quite apart from being financed by private funds, the design, construction and project management aspects were all handled by the Royal Hong Kong Jockey Club (RHKJC). Comparison with other Government projects is therefore not entirely appropriate.

In this particular case, it would be excessive to view the Recreation and Culture Branch (RCB) as the client for the redevelopment of the stadium. It must be stressed that the primary function of the RCB, being the policy branch for sports, was to see that the project received the necessary Government support to ensure its timely completion. Thus, RCB was more a co-ordinator than a client.

Inadequate attcntionJo the noise issue

It would be unfair to suggest that the key players in the project gave inadequate attention to the noise issue and that the arrangements adopted to tackle the problem were vaguely defined. Both the Government and the RHKJC recognised the importance of environmental issues at the outset. An Environmental Noise Abatement report was produced in February 1992, eight months after the announcement of the project. Views were then given by the Environmental Protection Department (EPD) on the report. Subsequent discussions were held among the consultants, the Urban Services Department, the Architectural Services Department and the EPD to work out a solution to the concern expressed by the EPD.

The work continued with the appointment of Wembley as the Stadium Manager. A second Environmental Noise Abatement report was produced in December 1993. Various measures were proposed and the possibility of seeking a waiver from the provisions of the Noise Control Ordinance was also explored. A search for a satisfactory solution is continuing and the Government is confident that a resolution will be found.

10

Self-financing policy

This policy has been determined for two very sound purposes. First, for the sake of good management, this sizeable facility should be used adequately and should not have to be subsidised heavily as in the past. Secondly, the policy will ensure that surplus revenue generated from the facility is ploughed back to sport and not diverted elsewhere. However, it does not insist that a surplus must be produced. What it expects is for the facility to be managed on a self-financing basis.

Before formulation, the principles of this policy were discussed with the Secretary for the Treasury and the Urban Council. Its application is entirely in the hands of the Urban Council. There is no pressure from the Government on the Urban Council to make a profit by using the stadium for pop concerts.

End/Wednesday, March 15, 1995

4,035 agreements lodged with Land Registry in February *****

A total of 4,035 sale and purchase agreements for building units, which include both residential and non-residential properties, were lodged with the Land Registry last month.

The figure represents a decrease of 40 per cent from that of January 1995, and a 69 per cent drop compared with February 1994.

The total consideration of these agreements is $11.89 billion, down 30.4 per cent and 78.3 per cent as compared with the amounts for January 1995 and February 1994 respectively.

The figures are contained in the monthly statistics released today (Wednesday) by the Land Registry on deeds relating to property transactions received for registration in the Urban and New Territories Land Registries last month.

Relevant statistics for January 1995 and February 1994 were provided for comparison.

Figures on sale and purchase agreements received for the past 12 months and the year-on-year rate of change were also released.

The statistics generally relate to land transactions executed up to four weeks prior to their submission for registration, as there is usually a time lag between the execution of deeds and their lodgement for registration.

End/Wednesday, March 15, 1995

11

Appeal to rooftop occupants to register with Housing Department ♦ * ♦ * ♦

» A • ' A ‘

The Secretary for Housing, Mr Dominic Wong, today (Wednesday) repeated his appeal to occupants of illegal rooftop structures, who wish to be rehoused in public rental estates, to come forward to register with the Housing Department and place themselves on the General Waiting List.

Mr Wong said: "This is the proper way to ensure that they will be considered for rehousing together with other applicants on the General Waiting List on a fair and equitable basis."

"The earlier they put in their applications, the earlier they will be rehoused if they can meet the normal household income limit criteria."

Mr Wong reiterated that it is the Government's policy to offer rehousing to those in need prior to any clearance or demolition. No one would be made homeless under this policy.

Problems arise only when occupants refuse to accept the type of rehousing for which they are eligible. Clearly, it is in their own interest to co-operate with the Housing Department. To do otherwise will only delay the rehousing process, and in any case will not change their eligibility status.

"The criteria for rehousing are reasonable and fair and should not be changed in favour of a particular group. We do not consider it reasonable to provide immediate rehousing in public rental flats for rooftop occupants who do not satisfy the eligibility criteria. To do so will lead to accusations of 'queue jumping', which is unfair to eligible households already on the Waiting List," he said.

Mr Wong noted that of the 16 families registered with the Housing Department in connection with the Tsuen Wan clearance earlier this year, four have been rehoused in public rental estates, seven in temporary housing, one is being processed for public rental rehousing, and one is under investigation. The remaining three families have either given up their application or been disqualified because they are owners of private property or not bona-fide occupants.

12

In the case of the rooftop occupants of the Good View Court in Kwun Tong, two families have been offered public rental housing; one is being processed through the waiting list, two are already temporary housing area (THA) occupants and the remaining four have been offered THAs in the New Territories.

With regard to the rooftop structures of Kingland Apartments in Mong Kok due for demolition next month, 37 families have registered with the Housing Department. All eligible families have been offered rehousing, either in public rental units or THAs.

End/Wednesday, March 15, 1995

Early intervention helps disabled children in studies * * * * ♦

Early intervention for disabled children is important to help them integrate into mainstream education, Mrs Patten said today (Wednesday).

She said she was pleased to hear that the Government would provide more than 700 additional places in pre-school centres for disabled children over the next four years to meet the increased demand.

Speaking at the opening ceremony of the Lai Chi Kok Bay Garden Centre of the Suen Mei Speech and Hearing Centre for the Deaf, Mrs Patten said the Government had also raised the special educational needs of hearing-impaired students with tertiary institutions that were funded by the University Grants Committee.

"It is encouraging to note their response. At the highest level, they are aware of the higher education needs and aspirations of students with a disability.

"They are prepared to consider, whenever appropriate, strategies for overcoming the difficulties experienced by such students who are academically qualified to study at the tertiary level,” she said.

' k I I*' ’ y ;

"Let us hope that these aims will result in more students with disabilities being able to take their studies to tertiary level," she added.

• ■ • ■

Mrs Patten commended the centre for contributing to early intervention programmes for hearing impaired children.

13

Formerly located in Mei Foo Sun Chuen, the centre has helped more than 70 such children integrate into mainstream education since its inception in 1981.

The success rate for integrating these children into ordinary kindergartens, and then into primary and secondary schools, was as high as 96 per cent.

End/Wednesday, March 15, 1995

• I I *

Yuen Long lot to let ♦ ♦ ♦ ♦ ♦

The Lands Department is inviting tenders for short-term tenancy of a piece of Government land in Yuen Long.

Located at Yuen Long Town Park Road South, the lot has an area of 5,734 square metres for use as a plant nursery for gardening.

The tenancy is for 18 months, renewable quarterly.

Closing date for submission of tender is at noon on March 31.

Tender form, tender notice and conditions may be obtained from the District Lands Office, Yuen Long, 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 Plan can also be inspected at these offices.

End/Wednesday, March 15, 1995

Flushing water cut in Ma On Shan ♦ ♦ » ♦ ♦

Flushing water supply to some premises in Ma On Shan will be temporarily suspended from 8 am to 8 pm on Friday (March 17) to facilitate the checking of the water supply system.

The affected areas include Yiu On Estate, Hing On Temporary Housing Area, Kam Hay Court, Fok On Garden, Sunshine City, Fu Fai Garden, Bayshore Towers, Ma On Shan Centre, Kam Ying Court, Villa Athena, Saddle Ridge Garden, Kam Lung Court, Lee On Estate as well as all the premises at On Shan Lane and the section of Ma On Shan Road to the north of Hang Hong Street.

End/Wednesday, March 15, 1995

14

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,569 0930 +151

Closing balance in the account 1,354 1000 +151

Change attributable to : 1100 +62

Money market activity +65 1200 +65

LAF today -1,280 1500 +65

1600 +65

LAF rate 4.25% bid/6.25% offer TWI 118.5 *+0.0* 15.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.88 14 months 2605 6.35 100.06 6.38

1 month 5.20 23 months 2702 7.50 101.54 6.75

3 months 5.65 28 months 3707 6.95 100.40 6.87

6 months 5.91 34 months 3801 8.00 102.56 7.12

12 months 6.26 57 months 5912 8.15 102.56 7.64

Total turnover of bills and bonds - $38,227 million

Closed March 15, 1995

End/Wednesday, March 15, 1995

DAILY INFORMATION BULLETIN

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

Thursday, March 16,1995

Contents Page No.t

HK needs Court of Final Appeal before 1997.................................. 1

Transcript of Chief Secretary's media session  ............................. 2

Greener and cleaner environment benefits Hong Kong.......................... 3

Appointment of Executive Director of the Securities and Futures Commission 5

Unemployment and underemployment statistics for Nov 1994 - Jan 1995 ........ 6

Bus-only lane on trial at Tuen Mun Road................................ 7

REO receives information on over 1 m employees for voter registration.. 10

More occasional child care places under planning....................... 11

Primary schools invited to join Extensive Reading Scheme............... 12

New requirement for PLB driving test....................................... 13

Hong Kong Monetary Authority money market operations....................... 14

1

HK needs Court of Final Appeal before 1997 ♦ ♦ ♦ ♦ ♦

It would be in the best interests of Hong Kong to stand by the commitment to establish the Court of Final Appeal (CFA) before 1997 on the basis of the 1991 agreement, the Chief Secretary, Mrs Anson Chan, said tonight (Thursday).

In order to ensure the smooth operation of the new CFA and to allow it to develop its own body of jurisprudence, it must be set up by mid-1996, she added.

That means the CFA Bill have to be enacted by the end of July when this Legco session ends.

Spelling out the reasons for the need to set up the CFA before 1997 at a dinner of the Federation of Hong Kong Industries, Mrs Chan said Hong Kong would have a judicial vacuum for the last few months before June 30, 1997 if the CFA was not set up before 1997.

In that case, new cases will not have time to be considered by the Judicial Committee of the Privy Council, and then for the year or two after that date that it will take the Special Administrative Region Government to enact a bill and then set up the court. Perhaps as long as two to three years in all.

"All this would mean a lack of continuity at the top of the judicial system, that would inevitably undermine confidence among both the Hong Kong public and international investors.

"We are already aware that some potential investors are now taking the unusual step of ensuring that their contracts are not subject to the jurisdiction of the Hong Kong courts.

"This is not a situation that we welcome," she said.

Another reason for setting up the CFA before 1997 is that the Government does not want to deprive litigants of their right to appeal against decisions of the Appeal Court, Mrs Chan explained. Privy Council decisions, almost by definition, produce important points of law that affect the whole of the legal and judicial system in Hong Kong.

She told the gathering of industrialists that a commercial dispute that was not settled could mean additional costs to them.

"No responsible Government should subject litigants to such a predicament," she said.

2

The CFA Bill was handed to the Chinese Government in May last year. Since then, they have asked 17 questions which have all been answered promptly by the Government.

The Government also sought the views of the legal profession on the draft bill last November, and in the light of their comments made a number of technical amendments, which were handed to the Chinese Government in late January this year.

”1 very much hope that the Chinese side will be able to give us a positive response very soon,” Mrs Chan said.

’’This will be the best demonstration of our resolve to co-operate in ensuring a smooth transition for Hong Kong and will send a reassuring signal to the community," she added.

End/Thursday, March 16, 1995

Transcript of Chief Secretary's media session ♦ ♦ ♦ ♦ ♦

The following is the transcript of the media session by the Chief Secretary, Mrs Anson Chan, after the presentation ceremony of the Green Project Awards ’95 this (Thursday) afternoon:

Question: Given your recent comments about government officials admitting to their mistakes, how satisfied are you with Mr So’s reaction to the ombudsman's criticism with regard to the Hong Kong Stadium...

Chief Secretary: Ask me this slightly later because I have not yet seen the report myself. I know that we received a comprehensive report from the Commissioner and I shall of course study this report very carefully. We’ll see what lessons can be learned. There may well be a lack of co-ordination , if there is, then I’m sure this report will point to where there is room for improvement. And you can be sure that we will follow up. But in the meantime, of course, the community would very much like the Urban Council and the Government to make sure that we can make optimum use of this splendid sport facility. The Urban Council, I understand, is having a test concert in April. They've installed some new sound equipment which hopefully will meet both the audience’s expectation but also satisfy the residents living nearby as regards noise pollution. If this test concert goes as well as expected then I’m sure it will enable the sport facility to be much better used in the future. So we must wait to see how the test concert go. But let me assure you again I’ll look at the report personally and I’ll, as I said, see what lessons can be learned. I’m sure co-ordination can always be improved.

3

Question: How do you find yesterday's civil aviation expert group can expedite the plenary for the ...JLG?

Chief Secretary: I think they are still in the discussion stage. Of course, air services agreements, the whole network of the air services agreements is extremely important in terms of maintaining Hong Kong's position as the regional aviation centre. I think this view is fully shared by the Chinese and we very much hope that through expert group meetings and eventually at JLG discussions we can secure Chinese agreement to more ASAs being concluded with our aviation partners.

Question: Is there's no agreement on the Court of Final Appeal ....in the Joint Liaison Group meeting, will the Government.....introduce the bill?

Chief Secretary: Let me state our position. We have an agreement with the Chinese which was reached in 1991 about the establishment of the Court of Final Appeal. Both sides have stated on many occasions their commitment to see this Court of Final Appeal established before 1997. We have already said that in order to go through the necessary procedures in terms of setting up this court, and there are many procedures such as for example, securing a building, fitting out, getting the necessary rules and regulations drawn up including staff etc., etc. This will take about a year. So, the latest we need to set up the court would be mid-1996 at the latest. The first thing obviously is to get the necessary legislation enacted by the Legislative Council. We have a bill which is ready to go before the Legislative Council but we do want to secure Chinese agreement to this bill. The Chinese have had this bill since May last year, so about 10 months. They have raised a number of questions. We've answered all these questions. So we very much hope that the Chinese will feel able to give us a positive response to the draft bill which would then enable us to table the bill in the Legislative Council and hopefully to enact this bill before the end of this current session. But I'll be saying more about the Court of Final Appeal at the speech to the Federation of Hong Kong Industries this evening. Thank you.

* *4 *'• , . - •* * • •

End/Thursday, March 16, 1995

Greener and cleaner environment benefits Hong Kong ♦ ♦ ♦ ♦ ♦ o- •

•j • -a t J.

The Chief Secretary, Mrs Anson Chan, today (Thursday) called on the public to change their environmentally unfriendly habits and practices so as to protect the environment.

"To engender the change of attitudes and habits, we must increase the community’s environmental awareness and sense of responsibility," she added.

4

Speaking at the Green Project Awards 1995 Prize-Presentation Ceremony, Mrs Chan said the Government had published information on environmental matters to help educate the public and to encourage them to take a wider, and more sympathetic interest in the environment.

She noted that Hong Kong, owing to rapid economic growth, faced substantial environmental problems.

To remedy the situation, comprehensive action plans have been taken to provide practical and cost effective long term solutions to the problems.

"We are making substantial investments in environmental infrastructure - a $21 billion sewage strategy, a $10 billion solid waste strategy, a $2 billion special wastes strategy," the Chief Secretary said.

"These plans, and the investments which secure them, are well underway."

Within the environmental programme area, studies are also undertaken to articulate a framework of sustainable development for Hong Kong.

The Waste Reduction Study reviews the existing waste generation and collection patterns, and will identify measures to reduce waste production and increase reuse and recycling.

"The study will help us cut down on wastes and make the best long term use of valuable waste disposal facilities."

Another pre-emptive measure, Mrs Chan pointed out, was the legal requirement for environmental impact assessments of major development projects.

"Such assessments will ensure that the potential environmental consequences of major projects are considered throughout the process of project planning, so that the negative impact caused by the projects on the environment can be minimised," she added.

Meanwhile, many government and non-govemment organisations are doing excellent work in raising public's environmental concern, for example, setting up green funds to support environmental activities.

Turning to the award scheme, the Chief Secretary said the number of quality green projects entries this year was encouraging, showing that public interest in the environment was growing.

5

"More green projects will mobilise more people to show concern for the environment and help with the important task of environmental education. In this way green concern will be translated into green practice.

"We will all benefit from a greener and cleaner Hong Kong," she added.

End/Thursday, March 16, 1995

Appointment of Executive Director of the Securities and Futures Commission * ♦ ♦ * ♦

The Financial Secretary has approved the appointment of Mr David White as an Executive Director in charge of the Supervision of Markets Division of the Securities and Futures Commission (SFC), the Secretary for Financial Services, Mr Michael Cartland, said today (Thursday).

Mr White, 48, is an accountant by profession and has had 18 years' of experience in the banking and securities industries.

Prior to his current appointment as Director, Derivatives and Market Development, with the Australian Stock Exchange, he was Director of County Natwest Investment Management in Sydney and London (1986-92), Director of Dominguez Barry Samuel Montagu (now SBC Australia Ltd) (1983-86), and General Manager of Citicorp Australia (1977-83).

Earlier, the Financial Secretary appointed a Selection Panel chaired by the SFC Chairman, Mr Anthony Neoh, to identify a suitable successor to Mr Robert Gilmore, whose contract expires on April 30, 1995.

Other members of the Panel included Mr Roderick Chalmers, a Non-Executive Director of the SFC, Mr Antony Leung of the Citibank group and the Deputy Secretary for Financial Services.

"To secure the best possible candidate for such an important appointment, the Panel appointed an executive recruitment consultant to conduct a global search of potential candidates. In addition, advertisements were placed locally," Mr Cartland said.

The panel unanimously decided that Mr White should be appointed to fill the vacancy. The recommendation was accepted and the appointment approved by the Financial Secretary.

6

Mr White will report to the SFC on April 18 and will formally assume the post on May 1. His contract will run until June 30, 1997, and may be extended by mutual agreement.

"The appointment, from among the Executive Directors, of a new Deputy Chairman of the SFC is still under consideration and an announcement will be made in the near future," Mr Cartland said.

"I would like to pay tribute to Mr Robert Gilmore, the outgoing Deputy Chairman and Executive Director, for his contributions to the SFC since its inception in 1989. Mr Gilmore's in-depth knowledge of the international securities industry has helped the SFC to develop into a world class regulatory organisation," Mr Cartland added.

End/Thursday, March 16, 1995

Unemployment and underemployment statistics for Nov 1994 - Jan 1995 *****

The seasonally adjusted unemployment rate for November 1994 - January 1995 was 2.2%, and the underemployment rate was 1.6%, according to the latest labour force statistics released today ( Thursday) by the Census and Statistics Department.

The provisional seasonally adjusted unemployment rate for the period of December 1994 - February 1995 was 2.5%, while the provisional underemployment rate was 1.5%.

The latest figures indicate that the unemployment rate rose, while the underemployment rate remained generally stable.

The rise in the unemployment rate in the three months ending February is likely to be due to more workers changing jobs and looking for alternative employment after the Lunar New Year.

During the period of November 1994 - January 1995, the number of unemployed persons, adjusted for seasonal variations in the proportion of first-time job-seekers in the labour force, was estimated at 66,000, while the number of underemployed persons was estimated at 47,300.

The unemployment and underemployment statistics were obtained from a continuous General Household Survey conducted by the Census and Statistics Department.

7

The survey for November 1994 - January 1995 covered a quarterly sample of some 12,600 households or 42,800 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 December 1994 will be available at the Government Publications Centre by the end of the month at $24 a copy.

End/Thursday, March 16, 1995

Bus-only lane on trial at Tuen Mun Road *****

A bus-only lane is to be introduced at Tuen Mun Road starting on March 25 on a trial basis for three weeks.

Announcing details of the trial scheme today (Thursday), Assistant Commissioner for Transport. Mr Alan Lui. said the scheme was aimed at improving the efficiency and reliability of public transport services.

This will also encourage private car users to switch to public transport to help alleviate congestion on Tuen Mun Road.

Mr Lui said the bus-only lane would be designated in the nearside lane of the Kowloon-bound carriageway of Tuen Mun Road from So Kwun Wat to a point west of Tsuen Wan Road with a total length of 13 kilometres.

"It shall be operational between 6.30 am and 9 am daily except Sundays and public holidays. The bus-only lane will be used by franchised and non- franchised buses, including school buses and other coaches," he said.

He added that the remaining two lanes would be open to all traffic including medium and heavy goods vehicles with the offside lane for overtaking activities.

8

Outside the operation hours of the bus-only lane, the nearside bus-only lane will be a normal traffic lane along an expressway and all traffic should keep to the left unless overtaking. Medium and heavy goods vehicles and buses shall not drive on the offside lane.

During the operation of the bus-only lane, Kowloon-bound motorists on Tuen Mun Road are not allowed to exit Tuen Mun Road at Siu Lam and Sham Tseng Interchanges. To reach their destinations at Siu Lam and Sham Tseng from Tuen Mun, they should use Castle Peak Road instead.

At the same time, motorists on Castle Peak Road are not allowed to join Tuen Mun Road Kowloon-bound at Siu Lam Interchange and Tuen Mun Road both bounds at Sham Tseng Interchange. They should remain on Castle Peak Road for the rest of their journeys.

With the introduction of the bus-only lane, it is expected that a saving of bus journey time of about 15 minutes will be achieved, benefiting about 60,000 bus passengers in the peak hour. Besides, the reliability and efficiency of bus operation will be improved, resulting in fewer lost bus trips and more passenger capacities.

To tie in with the introduction of the bus-only lane. Kowloon Motor Bus will strengthen external bus services operating along Tuen Mun Road by deploying more buses on these routes. Additional trips, planned at some 50 extra bus departures between 6 am and 9 am, will be operated.

Two new bus routes will also be introduced near Sham Tseng and Sam Shing to operate to Tsuen Wan MTR Station, starting from Saturday (March 18).

Mr Lui urged commuters in Yuen Long. Tuen Mun and Tsuen Wan districts to make the best use of public transport which would be enhanced in capacity and efficiency.

It is expected that the queue of general traffic on Tuen Mun Road and Castle Peak Road will be longer after the introduction of the bus-onjy lane, and some delays in car travel is likely.

To make the best use of available road space, private motorists are advised to consider carrying their friends and relatives in their cars and giving them a lift. This will help reduce traffic volume. Besides, they should also plan their journeys well and travel early.

9

Mr Lui pointed out that traffic volume on Tuen Mun Road had been increasing and the road was saturated in the morning peak hours. Traffic queues were often observed in the uphill sections. Consequently, bus operation was seriously affected, resulting in substantial lost trips and delay to thousands of bus passengers.

A Govemment/District Board Working Group was convened in 1992/93 to examine short-term traffic management measures to relieve congestion on this corridor. Its recommendations have been actively pursued by the Government departments concerned. The major proposals implemented include:

enhancement of publicity and education on road discipline;

* increases in police patrols and monitoring;

construction of additional lay-bys for breakdown/accident management;

* positioning of stand-by breakdown-recovery vehicles on-site;

* commencement of the provision of a vehicle-weighing station at Tai Lam to deter overloading; and

* improvement of bus and ferry services.

However, despite the efforts made in the above areas, no lasting relief had been achieved and the situation might deteriorate prior to the completion of the Tuen Mun Road widening scheme in late 1996 and the Route 3 Country Park Section in 1998, Mr Lui said.

"In view of the prevailing traffic conditions, there have been repeated suggestions and representations made by resident organisations in the past year pressing for the early introduction of a bus-only lane on Tuen Mun Road to speed up bus journeys in the morning peak period," he said.

The feasibility of bus-only lane on Tuen Mun Road has been studied in depth with the support of consultants. The proposal is considered worth pursuing, under certain conditions, initially on an experimental basis.

The bus-only lane scheme will be closely monitored by the Transport Department and the Police. A joint Scheme Co-ordination Centre made up of concerned departments will be established at Siu l am to oversee the implementation of the scheme.

10

In addition, the Tuen Mun District Office has also set up a liaison group comprising Legislative Council Members, District Board Members and other concerned parties to observe the implementation of the trial scheme.

"Two telephone hotlines, Nos 2399 2437 and 2399 2424, will be in operation between March 17 and March 31 to answer public enquiries on the operational details of the bus-only lane,” Mr Lui said

The scheme, together with the associated traffic measures, will be reviewed in three weeks' time.

End/Thursday. March 16, 1995

REO receives information on over Im employees for voter registration *****

As at yesterday (March 15), returns from employers covering over 1.03 million employees (representing 35 per cent of the estimated 2.9 million working population) were received by the Registration and Electoral Office (REO).

These returns were made by some 115,000 employers in response to the request by the REO for information on their principal line of business, and the names and identity card numbers of their employees.

Such information is required for the registration of working persons for the nine new functional constituencies in the September Legislative Council elections.

The first phase of the voter registration exercise for the nine new functional constituencies, which started in mid-January, is focused on obtaining employees' information from employers.

In mid-January, the REO sent out requests for information to all employers on the business registration record.

Reminders were sent in late February to those employers who had not responded.

Staff of the Home Affairs Department are also making follow-up visits to business establishments to collect outstanding returns on behalf of the REO.

An REO spokesman said the next phase of the voter registration exercise would be targeted at the working persons themselves.

11

The REO staff would be matching information provided by the employers with records on the General Electoral Roll (GER).

Notifications would be sent to employees whose particulars have been supplied by the employers and who are registered electors on the GER to invite them to be registered under one of the nine new functional constituencies in accordance with the principal line of business of their employers.

y .

These employees should receive a notification before April 15 informing them of the particular functional constituency to which they belong.

To supplement these efforts, there will be intensive general publicity through the mass media and promotional activities to remind working persons to register as electors in the new functional constituencies.

Registration forms would be available from over 1,500 convenient outlets such as banks and post offices.

The spokesman said if employees did not receive a notification by April 15, they should complete a registration form and send it to the REO before June 1 to ensure that they would be registered in time for the September LegCo elections.

. ‘I y. J;

End/Thursday, March 16, 1995

More occasional child care places under planning ♦ ♦ ♦ ♦ ♦

The Social Welfare Department (SWD) is planning to provide 225 additional occasional child care places in 1995/96 to cope with increasing demand for the service.

Members of the public who need to leave their children alone at home for whatever reason at any time of the day are advised to make full use of the occasional child care service, a spokesman for the department said today (Thursday).

’’Children should under no circumstances be left unattended at home, even for a short while,” the spokesman said.

At present, there are 135 child care centres providing a total of 405 occasional child care places to assist needy parents to temporarily look after their children.

12

Child care centres offer temporary care for children aged under six at two-hour, half-day (four hours) or whole-day basis. The fee for a two-hour session is $13.

Members of the public who are interested in the service may call the SWD's hotline 2343 2255 or the Child Care Centre Advisory Inspectorate at 2836 3114.

’’Parents having any child care problems can seek help from the department's various family services centres throughout the territory,” the spokesman added.

End/Thursday, March 16, 1995

Primary schools invited to join Extensive Reading Scheme ♦ ♦ * * ♦

Primary schools wishing to join the phase 1 of the Extensive Reading Scheme in English for Primary 5 and 6 pupils this September are reminded to submit their applications before next Wednesday (March 22).

An Education Department spokesman said today (Thursday): "The aims of the Scheme are to help upper primary pupils develop a good habit of reading in English and to improve their English proficiency through reading quality English books and incorporating extensive reading into the curriculum.

* » *

”In the first year of implementation in a school, only primary 5 students will take part in the scheme. They will start reading at a level appropriate to their reading ability and they are expected to work their way through the reading levels as they move up to primary 6.

”In the second year of implementation, the class will share the resource with a new primary 5 class," the spokesman said.

Schools participating in the Scheme will receive a complete resource package including one set of 300 books graded into six reading levels as well as reading and teaching aids.

Specialist support will be offered to schools to help teachers implement the Scheme. Seminars and induction courses will also be held before the implementation of the Scheme.

The spokesman said about 35 schools would be selected to join the Scheme.

- 13 -

Schools interested in participating in the scheme are requested to send the reply slip to the Extensive Reading Scheme Team, English Section, Advisory Inspectorate, c/o Bonham Campus, Hong Kong Institute of Education, 2 Hospital Road, Hong Kong before March 22.

For further enquiries, please contact the Extensive Reading Scheme Team, English Section, Advisory Inspectorate at 2803 2406.

End/Thursday, March 16, 1995

New requirement for PLB driving test ♦ ♦ ♦ ♦ ♦

A person applying for a Private/Public light bus (PLB)(Vehicle class 04/05) driving test needs to have a PLB learner driving licence as from April 1 this year.

The applicant must also take his driving training from a licensed PLB driving instructor.

A spokesman for the Transport Department said today (Thursday) that the new requirement was in fact the second step of regularising light bus driving instruction, following the issue of PLB driving instructors’ licences last year.

He said during the training session, a ”L" plate must be displayed at the front and rear of the training vehicle as stipulated in regulation 30(3b) of the Road Traffic (Driving Licence) Regulation, Cap. 374.

’’This new requirement is in line with the application for driving test for other types of vehicles,” he added.

■' .-.'i .

End/Thursday, March 16, 1995


- 14 -

Hong Kong Monetary Authority money market operations

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,354 0930 +1,268

Closing balance in the account 1,567 1000 +1,258

Change attributable to: 1100 +1,248

Money market activity +1,251 1200 +1,251

LAF today -1,038 1500 +1,251

t 1600 +1,251

LAF rate 4.25% bid/6.25% offer TWI 118.2 ♦-0.3* 16.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Govemmei it bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.94 14 months 2605 6.35 100.07 6.38

1 month 5.17 23 months 2702 7.50 101.50 6.77

3 months 5.61 28 months 3707 6.95 100.29 6.93

6 months 5.92 34 months 3801 8.00 102.40 7.18

12 months 6.24 57 months 5912 8.15 102.52 7.65

Total turnover of bills and bonds - $15,959 million

Closed March 16, 1995

End/Thursday, March 16, 1995

DAILY INFORMATION BULLETIN

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

Friday, March 17,1995

Contents Page No.

Inland Revenue (Amendment) Bill 1995 gazetted............................ 1

Hong Kong Government delegation to visit China........................... 2

Statement by Secretary for Housing....................................... 3

FS thanks businessmen for support of 1995/96 Budget...................... 4

First tunnel unit successfully placed in position........................ 6

Contract awarded for new airport......................................... 8

Committee appointed to advise on candidates' qualification............... 8

Tenders invited for infrastructural works................................ 9

Australian MP briefed on shipping matters..............................  10

New computerised drug information hotline............................... 10

Student slogan designers awarded.................................... 12

Hong Kong Monetary Authority money market operations.................... 13

1

Inland Revenue (Amendment) Bill 1995 gazetted ♦ ♦ ♦ ♦ ♦

The Government has proposed legislation to combat the use of an interposed "service company" to disguise what is in substance a contract of employment so as to avoid or significantly reduce tax liability.

Details of the proposal are contained in the Inland Revenue (Amendment) Bill 1995 which was gazetted today (Friday).

A Government spokesman said in the 1994 Budget Speech, the Financial Secretary highlighted two types of tax avoidance arrangements of particular concern to the Government.

The first amounts to an attempt to disguise what is, in substance, an employeremployee relationship. The second involves the payment of inflated management fees by a firm to a service company that is controlled by the firm's proprietor or its partners.

The spokesman said: "Following the announcement in the 1994 Budget Speech, we have conducted consultations on how best to address these areas of concern. We have listened carefully to views expressed by the LegCo Panel on Financial Affairs, leading professionals and tax experts on the proposal.

"As a result, we have decided to limit the bill to the first type of arrangements (disguised employment) and to deal with the second type (payment of inflated management fees to service companies controlled by connected persons) by a Practice Note to be issued by the Commissioner of Inland Revenue.

"This compromise aims to achieve our basic objective of protecting public revenue whilst meeting interested parties’ concerns about the equity and effectiveness of the original proposal."

In brief, the bill will tackle cases of disguised employment by treating remuneration paid to a company for services rendered by a person who controls that company as income derived by the person from employment and chargeable to salaries tax accordingly.

2

”We have, however, provided safeguards for genuine service companies, that is where employer-employee relationships are not in substance involved,” the spokesman said.

’’Given our low taxes, there is no excuse for not paying in full the modest tax obligations which we impose to finance our public services and facilities. There is widespread support for our efforts to tackle tax avoidance and evasion. The bill is another attempt to protect public revenue and thereby prevent those who seek to avoid tax from shifting the burden of financing public services unfairly onto the rest of the community,” he added.

- End/Friday, March 17, 1995

Hong Kong Government delegation to visit China

*****

The Secretary for Trade and Industry, Mr T H Chau, is heading a Hong Kong Government delegation to Dalian and Beijing.

The delegation will leave next Tuesday (March 21) and return on March 29 (Wednesday).

Mr Chau said the purpose of the trip was to understand the work of his counterpart departments in China, to exchange views on subjects of mutual interest and to increase and improve contacts with Chinese Government officials.

The delegation will first spend two days in Dalian where the mayor, Mr Bo Xilai, will host a dinner for the delegation. There will also be calls on the Municipal Commission of Foreign Economic Relations and Trade and the Municipal Economic Commission.

They will visit the Economic and Technology Development Zone, a Hong Kong company operating there and the port of Dalian.

L

3

In Beijing, the delegation will call on the counterpart departments of the Trade and Industry Branch and its group of departments.

Other members of the delegation are: the Principal Representative of the Hong Kong Economic and Trade Office in Tokyo, Mr David Lan; Deputy Commissioner of Customs and Excise, Mr Lawrence Li; Principal Assistant Secretaries for Trade and Industry, Ms Sally Wong and Ms Au King-chi; Assistant Director-General of Industry, Ms Windy Kwok; Assistant Director-General of Trade, Ms Jennifer Mak; Assistant Secretary for Trade and Industry, Mr Wallace Lau and a Chinese Language Officer, Mr Rueben Leung.

End/Friday, March 17, 1995

Statement by Secretary for Housing ♦ ♦ ♦ ♦ ♦

The Secretary for Housing, Mr Dominic Wong, today (Friday) urged rooftop occupants of Kingland Apartments in Mong Kok to remain calm in pursuing their case relating to the clearance of their illegal structures.

Mr Wong said: "Staff of the Housing Branch and the Housing Department have met them twice in the last two weeks, and are prepared to meet them again in small groups for further discussions on rehousing arrangements before demolition of their illegal structures by the Buildings Department."

"It is unfortunate that they refused to meet us yesterday. However, we are willing to meet them again in Housing Department premises next week.

Mr Wong reiterated that it was the Government’s policy to offer rehousing to those in need prior to any clearance or demolition. No one would be made homeless under this policy.

"Problems arise only when occupants refuse to accept the type of rehousing to which they are eligible. Clearly, it is in their own interest to co-operate with the Housing Department. To do otherwise will only delay the rehousing process, and in any case will not change their eligibility status."

Commenting on this morning’s incident, Mr Wong said: "The Building Management requested the protesters to remain outside the building following receipt of complaints from tenants about the noise the protesters made yesterday morning and afternoon outside the Housing Branch office on the ninth floor of the building.

4

He regretted that some members of the group resorted to violence. This led to the arrest of three people (including a social worker) and subsequently the laying of charges of common assault or assaulting police officers.

"Violence will not serve any useful purpose. This is particularly so when we already have well-established procedures to take care of those to be cleared from their illegal structures," he said.

Mr Wong repeated his appeal to all rooftop occupants who wished to be rehoused in public rental flats to come forward to register with the Housing Department and place themselves on their General Waiting List.

"This is the proper way to ensure that they will be considered for rehousing together with other eligible applicants on the General Waiting List on a fair and equitable basis."

He emphasised that the existing rehousing criteria were reasonable and fair, and should not be changed in favour of a particular group.

"We do not consider it reasonable to provide immediate rehousing in public rental flats for rooftop occupants who do not satisfy the eligibility criteria. To do so would lead to accusations of 'queue jumping', which would be unfair to other eligible applicants already on the General Waiting List," he said.

End/Friday, March 17, 1995

FS thanks businessmen for support of 1995/96 Budget

*****

The Financial Secretary, Sir Hamish Macleod, today (Friday) thanked businessmen for their support of the 1995/96 Budget and urged them to adopt a realistic approach in assessing the economic prospects for Hong Kong.

Speaking to the Hong Kong General Chamber of Commerce, Sir Hamish said the public reaction to the Budget had been balanced and positive, noting that the two most frequently used words to describe it were ’’conservative” and ’’cautious”.

He said the projected level of reserves at $151 billion by March 1997 was a comfortable and reassuring cushion - both to the local community and the international audience - during the transitional period.

5

"When we have crossed the transitional period, it will be up to the SAR Government to decide what good use it will make of the reserves.

"But the SAR Government will need to adhere to the prescriptions in the Basic Law and, in particular, to continue to 'live within our means'.

"I would say that most of us welcome the additional comfort the very healthy reserves offer," he said.

Sir Hamish said the Government's budgetary policy was to keep the growth of Government expenditure in line with the growth of the economy.

He added that this did not mean that for every single year, Government expenditure must rise by no more than GDP.

"We have, in the past, been accused of a 'stop-go' approach. Our present approach is designed precisely to avoid 'stop-go': to ensure that, over time, the increase in Government expenditure will be contained within the trend growth rate of GDP," he said.

He added that over the three year period from 1993-94 to 1995-96 (in other words, using 1992-93 as the base year), the Government estimated that recurrent expenditure would have grown in real terms by 16 per cent, compared to the cumulative real growth in GDP of 17.2 per cent.

"Over the same period, capital works expenditure (at 1994-95 prices) will reach $83.2 billion, against a permitted expenditure ceiling of $93 billion," he said.

"All this growth in expenditure, 1 must add, has been funded by the additional wealth generated by the economy, not higher taxes," he added.

On the Government forecast of 5.5 per cent GDP growth for 1995, Sir Hamish noted that the most recent Financial Survey of the Asian Wall Street Journal, which regularly looks at key economic forecasts by 20 well-known analysts, showed that the mean GDP forecast for 1995 was 5.6 per cent (the lowest being 4.8 per cent, highest 6.2 per cent).

"They may of course be wrong, but it is perverse to give this consensus less publicity than one firm that has come out with a much lower forecast," he said.

Sir Hamish said other projections were reassuring too.

6

He said the Chinese Government had forecast lower economic growth for this year. "But at 8 per cent to 9 per cent it will still be very high by international standards," he said. "And you can add to this the fact that OECD (Organisation for Economic Co-operation and Development) has forecast growth for the United States and the European Union.

"And then there is the significant progress that has been made towards freer international trade.

"It is always useful to remember that not so long ago, many people doubted whether the Uruguay Round would be ever concluded or that APEC (Asia Pacific Economic Co-operation) would be more than a talking shop.

"So, overall, there are good reasons to be cautiously optimistic about our prospects," he said.

End/Friday, March 17, 1995

First tunnel unit successfully placed in position *****

Work on the Western Harbour Crossing reached a major milestone this morning (Friday) when the first immersed tube tunnel unit was successfully lowered into position on the seabed off Sai Ying Pun.

Mr Eric Glenville, Chief Engineer for the Western Harbour Link Office of the Highways Department, said: "This is the first of the 12 tunnel units which will be lowered and joined to form the 1,363 metres long immersed tube tunnel."

The Western Harbour Crossing, which links Sai Ying Pun on Hong Kong Island and reclaimed land in West Kowloon, is one of the 10 projects in the Airport Core Programme. It is being developed under a 30-year build-operate-transfer franchise awarded by the Government to the Western Harbour Tunnel Company Limited in September 1993.

When completed in mid-1997, the crossing will provide three traffic lanes in each direction and be Hong Kong's third cross-harbour road tunnel.

7

The immersed tube tunnel will be formed by 12 pre-cast reinforced concrete units, each weighing 35,000 tonnes and each of the size of a football pitch, measuring 113.5 metres long, 33.4 metres wide and 8.5 metres high.

"This is a major milestone in the project, and comes two months after the first four tunnel units were completed and towed from the casting basin at Shek O to a temporary mooring area near Tseung Kwan O. There, additional works were carried out to prepare them for the lowering and joining operation," said Mr John Mundy, the Project Manager of Nishimatsu Kumagai Joint Venture, which is responsible for design and construction of the works.

The concrete unit was towed by four tug boats early Wednesday (March 15) morning from Tseung Kwan O through the harbour to Sai Ying Pun. On arrival, it was manoeuvred into position near the Sai Ying Pun ventilation building, and attached to anchors to hold it in position.

On completion of the preparatory work, the lowering process began at about 3 pm yesterday afternoon (Thursday) by pumping 800 tonnes of sea water into tanks inside the unit. The unit was supported from two steel pontoons by cables attached to winches. It was then lowered in stages into the pre-dredged trench and onto its foundation pads.

The precise depth and position of the unit was checked at each stage by a team of engineers inside the control tower and by surveyors on land with divers being coordinated to confirm the underwater positions.

By 7 am this morning (Friday), the massive 35,000-tonne unit was resting on foundation pads at the bottom of the harbour.

This first unit has now been successfully secured in position against the connection structure. This is a short section of tunnel which has already been built on the seaward side of the ventilation building at Sai Ying Pun.

Mr Mundy said the lowering of the other three concrete units, now berthed at Tseung Kwan O, will take place over the next two months.

8

"Meanwhile, at the Shek O casting basin, work has already started on the casting of the second batch of four concrete units, which is expected to be ready in September.

"About 35 per cent of the works on the Western Harbour Crossing have been completed and the tunnel is on programme to open for traffic by mid-1997," said Mr Mundy.

End/Friday, March 17, 1995

Contract awarded for 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 provision of Very High Frequency and Ultra Frequency Radio Communications Equipment for the new airport at Chek Lap Kok.

The contract, valued at $30.6 million, has been awarded by the Civil Aviation Department to Motorola Military and Aerospace Electronics Incorporation of the United States.

The company will be responsible for the provision of the communication equipment to enable a reliable two-way voice communications between aircrafts, vehicles and various air traffic control units at the airport.

Work will start later this month for completion in August next year.

End/Friday, March 17, 1995

Committee appointed to advise on candidates' qualification *****

The Boundary and Election Commission (BEC) has appointed Mr Lawrence Lok Ying-kam, QC to be the Nominations Advisory Committee (NAC) from March 17 to August 21 in relation to the Legislative Council Elections in September.

The appointment was gazetted today (Friday).

9

The NAC is to provide advice to prospective candidates on their qualification for candidature before an election.

It will also provide Returning Officers with timely and impartial advice, thus ensuring consistency in their decisions on the validity of any nominations in which they have doubts. They can seek advice from the start of the nomination period until one day after its expiry.

To provide for the setting up of the NAC, the BEC has made the Boundary and Election Commission (Nominations Advisory Committee) Regulation which was gazetted on February 10.

A BEC spokesman said a prospective candidate for the LegCo elections might apply in writing for the advice of the NAC. Application should be sent to the Chief Electoral Officer on or before July 17.

End/Friday, March 17, 1995

Tenders invited for infrastructural works

*****

The Hong Kong Island and Islands Development Office of the Territory Development Department is inviting tenders for a works contract under the Phase IIB of the Tung Chung Development project.

The works of the contract include site formation for a village resite area north of Pa Mei Village, construction of access roads, car parks and associated storm water and foul drainage, and a sewage treatment plant.

The works are scheduled to begin in June for completion in 17 months.

A notice of the tender invitation was gazetted today (Friday).

Tender forms and further particulars may be obtained from Mott MacDonald Hong Kong Limited, 12th floor, Sun Kung Kai Centre, 30 Harbour Road, Wan Chai.

The tender closing date is noon on April 7.

End/Friday, March 17, 1995

10

Australian MP briefed on shipping matters ♦ ♦ ♦ ♦ *

The Marine Department has set an annual target for 1995 for Port State Control inspections on ship at four per cent and it aims to gradually increase the level to 15 per cent by the year 2000, the Director of Marine, Mr Ian Dale, told an Australian Member of Parliament, Mr Peter Morris, this (Friday) morning.

Mr Morris, Chairman of the Australian House of Representatives Standing Committee on Transport, Communications and Infrastructure, is on a two-day visit in Hong Kong.

He met Mr Dale and senior officials of the Marine Department this morning and was briefed on the ship and crew safety issues including Hong Kong’s participation in the Tokyo Memorandum, living conditions and welfare of seafarers.

Mr Morris also called on the Secretary for Economic Services, Mr Gordon Siu, later in the morning.

He will visit the Seamen’s Training Centre in Tai Lam tomorrow.

End/Friday, March 17, 1995

New computerised drug information hotline ♦ ♦ ♦ ♦ ♦

Members of the public can now obtain information on commonly used drugs through a computerised hotline introduced by the Department of Health.

The hotline 2836 3880 provides recorded messages on drug information round the clock.

Speaking at a press conference to launch the hotline today (Friday), Assistant Director of Health, Dr Chan Wai-man, said: ’’Information on 11 types of commonly used drugs for the treatment of diseases and their side-effects will be provided in Cantonese.”

’’This hotline service is part of the department’s effort to promote primary health care and health education, and to remind the public of the importance of proper use of drugs, ’’ Dr Chan said.

11

The following subjects are covered:

* proper use of drugs

preparations for common cold and influenza

non-steroidal anti-inflammatory drugs

antibiotics

peptic ulcer drugs

laxatives and anti-diarrhoeals

antihypertensives

drugs for angina

drugs for asthma

hypoglycaemic drugs

drugs for the treatment of gout

topical corticosteroids

These subjects will be varied from time to time to cover the more commonly used drugs.

"To coincide with the launching of the hotline, leaflets on the use of drugs will be distributed at all 59 General Out-patient clinics to improve patients' knowledge of. drugs to ensure effective treatment," Dr Chan said.

She added that health talks on the proper use of drugs would also be conducted at the General Out-patient clinics.

.. ■

Dr Chan said the hotline would also provide information covering 50 items on registration and licensing procedures in Cantonese, Putonghua and English.

"As the Pharmaceutical Service Division handles about 80,000 applications for registration and licensing every year, the hotline will offer greater convenience to the applicants and improve efficiency," she said.

Printed application forms and drug information sheets are available by fax upon request.

End/Friday, March 17, 1995

12

Student slogan designers awarded ♦ ♦ ♦ ♦ *

More than 950 students from 33 schools put their thoughts into catchy slogans to bring home to the public the importance of safety at work.

The Slogan Design Competition on Safety at Work for Students '95, held earlier this year, attracted a total of 952 entries.

The general high standard of the entries made judgment a painstaking job for the judges, the Chief Factory Inspector of the Labour Department, Mr Chan Tat-king, said at the prize-presentation ceremony today (Friday).

"Since doing summer jobs is a common practice among students, I hope they can cultivate a sense of safety awareness at work, both for their own good and for the benefit of other people," he added.

The competition, aimed at promoting students' awareness of the importance of work safety, was divided into the junior, senior and English sections.

The winners are as follows :

Junior Section

First Prize : Lam Yee-shing, Buddhist Sin Tak College

Second Prize : Lam Ka-yan, Fung Kai No. 1 Secondary School

Third Prize : Kwok Chun-shing, TWGHs S.C. Gaw Memorial College

Senior Section

First Prize : Wong Ka-wai, Buddhist Sin Tak College

Second Prize : Tjong Lee-ping, Buddhist Sin Tak College

Third Prize : Lee Wai-kuen, St. Stephen's College

English Section

First Prize : Gunawan, Ferawati Vera, St. Stephen's College

Second Prize : Chan Sze-wing, Madam Lau Kam Lung Secondary School

Third Prize : Lam Yok-yiu, Agnes, Madam Lau Kam Lung Secondary School

13

Winners were awarded with cash prizes ranging from $1,000 to $3,000 and a certificate.

The competition was organised by the Labour Department, Education Department, Hong Kong Association of Careers Masters and Guidance Masters as well as the Occupational Safety and Health Council.

End/Friday, March 17, 1995

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

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

Opening balance in the account 1,567 0930 +1,049

Closing balance in the account 2,209 1000 +1,049

Change attributable to : 1100 +1,092

Money market activity +1,044 1200 +1,044

LAF today -402 1500 +1,044

1600 +1,044

LAF rate 4.25% bid/6.25% offer TWI 118.2 *+0.0* 17.3.95

Hong Kong Monetary Authority

EF bills

EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.80 14 months 2605 6.35 100.06 6.38

1 month 5.13 23 months 2702 7.50 101.45 6.80

3 months 5.55 28 months 3707 6.95 100.27 6.94

6 months 5.87 34 months 3801 8.00 102.35 7.20

12 months 6.22 57 months 5912 8.15 102.40 7.68

Total turnover of bills and bonds - $14,211 million

Closed March 17, 1995

End/Friday, March 17, 1995

DAILY INFORMATION BULLETIN

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

Saturday, March 18,1995

Contents Page >0.

Co-operation needed for use of Chinese in courts......................... 1

Yau Tsim Mong traffic safety carnival.................................... 2

Sir David Trench Fund Committee invites applications for grants..... 3

Fresh and flushing water cut in Southern district........................ 4

Hong Kong Monetary Authority money market operations..................... 4

/

Sunday, March 19,1995

Contents Page No.

Road safety a great concern to all....................................... 5

Elderly Homes Ordinance effective from April............................. 6

Albert House free of unauthorised structures............................. 7

New airport jobs for local construction workers.......................... 8

Teacher Recruitment Information Office reactivated....................... 9

Huge painting depicts anti-drug message................................. 10

1

Co-operation needed for use of Chinese in courts

♦ * * * ♦

The promotion of the use of Chinese in courts is a mammoth task which needs the close co-operation of the Judiciary, the Administration, the legal profession and academics, the Chief Justice, Sir Ti Liang Yang, said today (Saturday).

Speaking at the opening ceremony of an exhibition on "Law Awareness" organised by the Lions Club, .the Chief Justice noted that the Judiciary was pressing ahead with a plan for the implementation of the use of Chinese in the District Court and above.

Sir Ti Liang explained that under existing legislation, all proceedings in the higher courts had to be conducted in the English language.

The Chief Justice said: "The implementation of the use of Chinese in courts is a very important and mammoth task because ours is a common law jurisdiction and that the common law is founded on English. Even our local judges and lawyers are trained in English.

"Nevertheless, the Judiciary will tackle the problem with a sense of urgency, pragmatism, flexibility, realism and determination and will closely co-operate with relevant government departments, the legal profession and tertiary institutions to plan and promote the use of Chinese in courts."

In July last year, the Chief Justice appointed a Steering Committee on the Use of Chinese in Courts tasked with putting in place, as far as possible, a bilingual system in court proceedings in the higher courts by June 30, 1997 so as to give an option to those who feel that justice is best served by the use of Chinese in their cases.

"This option is simply not available at present, although 98 per cent of Hong Kong's population speak Chinese as their first language," he said.

Sir Ti Liang added that Article 9 of the Basic Law stipulated that Chinese must be available as an official language in the Judiciary of the Hong Kong Special Administrative Region. However, to maintain Hong Kong's status as an international finance and trading centre, the Steering Committee had no intention of making the use of Chinese a mandatory requirement in court proceedings.

Noting that the Steering Committee had already drawn up a seven-phase pilot scheme to introduce the use of Chinese in all courts before July 1997, the Chief Justice said in drawing up this timetable, the Steering Committee had taken into consideration the different levels of courts and types of cases which could more practicably lend themselves to the use of Chinese.

2

Sir Ti Liang said: "The proposed strategy is ambitious and dependent on the necessary legislative amendments being approved and the availability of financial and staffing resources.

"Implementation is expected to be complex, involving, as it does, the coordination of the Judiciary, the Administration and the legal profession.

"Action is in hand to take the proposed strategy forward," he said, noting that "the Judiciary would launch a pilot scheme beginning in May this year on a computerised audio recording system and a transcript production service in both English and Chinese in all eight courts at the Eastern Magistracy."

"If this pilot is successful, similar facilities will be extended to all the other nine Magistrates Courts. The system should encourage lawyers to use Chinese more widely for trials at the Magistracy level in which the legal framework for the use of Chinese is well in place," he said.

The Chief Justice also pointed out that the Judiciary would also launch in October this year a limited pilot scheme on simultaneous interpretation for Magisterial and Tribunal appeal proceedings in the High Court.

Other measures that are in hand include the Glossary of Chinese/English and English/Chinese Legal Terms compiled by the Legal Department which should be ready this month.

Meanwhile, recruitment of court interpreters to implement the initial phases of the proposed strategy is in train, and a training programme is being drawn up.

End/Saturday, March 18, 1995

Yau Tsim Mong traffic safety carnival

*****

The Yau Tsim Mong traffic safety carnival will be held at the Piazza of the Kowloon Park tomorrow (Sunday) afternoon.

Members of the public are welcome to join in stall games and enjoy performances by pop singers.

Road safety messages will also be conveyed to children touring a bicycle safety

town.

3

The Commissioner for Transport, Mr Raphael Hui, will officiate at a ribboncutting ceremony.

The carnival was organised by the Yau Tsim Mong Traffic Safety Campaign Organising Committee with subsidy from the Yau Tsim Mong District Board.

Attention News Editors:

The Commissioner for Transport, Mr Raphael Hui, will officiate at a ribboncutting ceremony at 2.30 pm.

Your representatives are invited to cover the event.

End/Saturday, March 18, 1995

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

The Sir David Trench Fund Committee is inviting applications for grants from the Sir David Trench Fund for Recreation and the Jockey Club Grant for Permanent Recreational Facilities for Youth.

The Sir David Trench Fund for Recreation is aimed at providing recreational, sporting, cultural and social activities facilities to promote personal development and community involvement, particularly of young people, and to encourage purposeful use of leisure.

The Jockey Club grant is mainly for the construction of recreational facilities to meet the needs of young people.

A single application form is available for the two funds.

Application forms are obtainable at all District Offices of the Home Affairs Department, and at the Education. Social Welfare, Health. Urban Services and Regional Services Departments as well as the Hong Kong Council of Social Service.

They arc also available at the Recreation and Sports Division of the Recreation and Culture Branch, and the Secretariat of the Sir David Trench Fund Committee which is responsible for administering both the Sir David Trench Fund for Recreation for capital and non-capital projects and advising on the disbursement of the Jockey Club Grant.

4

Completed forms should be returned to the Secretariat of the Sir David Trench Fund Committee in room 4015, 40th floor, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.

Applications for capital works projects will close on May 20 while that for noncapital works projects are open throughout the year.

Enquiries about the Sir David Trench Fund for Recreation for capital works projects and the Jockey Club Grant for permanent facilities for youth can be made on 2594 5659 while those about non-capital works projects on 2594 5660.

End/Saturday, March 18, 1995

Fresh and flushing water cut in Southern district

*****

Fresh and flushing water supply to some premises in the Southern district will be suspended from 11 pm on Monday (March 20) to 6 am the following day to facilitate water mains leakage detection.

The suspension will affect all the premises at 135-141 Wong Nai Chung Gap Road. 1 Repulse Bay Road as well as 7 and 88 Tai Tam Reservoir Road.

End/Saturday, March 18, 1995

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

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

Opening balance in the account 2,209 09:30 +80

Closing balance in the account 1.579 10:00 +80

Change attributable to: 11:00 +80

Money market activity +80 11:30 +80

LAF today -710 15:00

LAF rate 4.25% bid/6.25% offer TWI 118.1 *-0.1* 18.3.95

End/Saturday, March 18. 1995

5

Road safety a great concern to all

♦ * ♦ ♦ ♦

A diverse range of counter-measures taken by the Government to tackle traffic accidents has produced some measure of success, the Commissioner for Transport, Mr Rafael Hui, said today (Sunday).

Speaking at the Yau Tsim Mong Traffic Safety Carnival held today, Mr Hui said traffic fatalities dropped by more than 15 per cent in 1994 compared with 1993. However, traffic accident casualties arc still unacceptably high.

He said the measures taken included stringent testing of vehicles and drivers, compulsory wearing of seat belts, education programmes, publicity, road safety patrols, traffic management measures and efficient enforcement by the Police. All these measures helped to reduce the accident toll.

"Road safety is a matter of great concern to us all. In 1994, there were almost 21,000 casualties in road accidents in Hong Kong. Almost 300 people were killed, nearly one death each day on our roads," Mr Hui said.

"The programme to reduce traffic accidents and injuries is on-going. Already in 1995 the Government has placed comprehensive proposals before the Legislative Council on drink driving. We also plan to extend compulsory seat belt wearing to rearscat passengers in private cars," he added.

Studies oI accident statistics have shown that inexperienced drivers, particularly motorcyclists, are more prone to accidents than other drivers.

In 1994, there were 2,908 accidents involving inexperienced drivers, of which 939 involved motorcyclists.

The Road Safety Research Committee of the Road Safety Council is now looking into the concept of a driver probationary scheme to see if it is appropriate for Hong Kong.

The Police have also introduced the Selective Traffic Enforcement Policy, under which they specifically target their enforcement activities at accident black spots, and at those traffic offences which are known to be major contributory causes of accidents.

"One of the greatest weapons in the fight for safer roads is undoubtedly to be found in increasing public awareness of the dangers which we face on the roads. All projects which help in enhancing road safety awareness are to be commended," Mr Hui said.

End/Sunday, March 19, 1995

6

Elderly Homes Ordinance effective from April

*****

Operators of private homes for the elderly are reminded that the Residential Care Homes (Elderly Persons) Ordinance, with the exception of Section 6, will come into operation on April 1 this year.

A spokesman for the Social Welfare Department (SWD) said today (Sunday) that with the implementation of the ordinance, residential care homes for the elderly would have to comply with the licensing requirements on location, space, design, structure, safety, fire precautions, staffing and quality of care to the residents before they were allowed to operate.

"The Residential Care Homes (Elderly Persons) Ordinance aims to regulate homes established for the residential care of elderly persons who have attained the age of 60 so as to ensure that these homes provide services of a reasonable standard and that the well-being of the elderly residents is safeguarded.

"The SWD will regulate residential care homes either by a licence or a certificate of exemption. Licences may be issued to residential care homes which are able to comply with the requirements in accordance with the ordinance," the spokesman said.

He explained it was the department's policy that all residential care homes which came into existence and which intended to start operation on or after April 1 this year should be subject to regulation by the issue of a licence rather than the issue of a certificate of exemption.

"Although the SWD will, of course, consider all applications for a certificate of exemption, it is unlikely that a certificate of exemption will be issued to any residential care home which commences operation on or after April 1 this year unless there is something exceptional in the circumstances which warrant a departure from this policy.

"The main reason for this approach is that regulation by the issue of a licence will better ensure high standards of residential care for elderly persons and better safeguard the interests of elderly residents than will regulation under a certificate of exemption," he said.

On the certificates of exemption, the spokesman said they were to be granted to residential care homes already in operation before April 1 this year but which were unable to comply fully with the legislative requirements.

7

"The policy of allowing these homes to continue in operation is to safeguard the interests of the residents on the one hand and the interests of the operators in business terms on the other.

"However, the certificate of exemption will be revoked if there is danger to the residents or the well-being of the residents may be adversely affected.

"Section 6 of the ordinance, which is intended to come into operation on April 1, 1996, stipulates that any person, who on any occasion operates, keeps, manages or otherwise has control of a residential care home in respect of which neither a licence nor a certificate of exemption has been issued, commits an offence and is liable to a fine of $100,000 and an imprisonment of two years," the spokesman added.

In view of the time required to process the applications, the spokesman urged operators of residential care homes to promptly apply for a licence or a certificate of exemption from the SWD's Licensing Office of Residential Care Homes for the Elderly located at Room 2354, 23rd floor, Wu Chung House, 213 Queen's Road East, Wan Chai.

Enquiries can be made on tel 2834 7414 or 2961 7211.

End/Sunday, March 19, 1995

Albert House free of unauthorised structures ♦ + * * ♦

The Buildings Department has succeeded in having all protruding unauthorised structures removed from Albert House in Aberdeen.

Following the collapse of a canopy at Albert House last year, inspection by staff of the department revealed that the building had 146 unauthorised building works (UBWs) projecting from the external walls, including metal cages, canopies and flower racks, many of which were in a serious state of disrepair.

In order to eliminate the danger posed by them, advisory letters were sent to the owners and occupants on September 27, 1994 requesting their voluntary removal.

Ihe letters were later followed by 32 demolition orders on November 11, 1994 to those owners and occupants who failed to remove their UBWs voluntarily.

A recent inspection by staff of the department has found that all the 146 UBWs have been removed.

8

In addition, in view of the unsatisfactory conditions of the external and common areas of Albert House, including loose/defective concrete, rusty steel bars, dilapidated chimney and defective drains, the Buildings Department also issued advisory letters requiring the parties concerned to effect urgent repairs. Progress is still being made in this respect.

The Acting Director of Buildings, Mr Cheng Wei-dart, noted that the "rehabilitation of Albert House is a good example of what residents and owners can achieve in terms of improving their living environment and safety.”

He thanked the owners and occupants concerned for setting an excellent example in the public interest.

"Our goal has always been to promote and maintain building safety. To this end, private and government resources and time could both be saved if building management, owners and occupants can be more responsive to timely repairs and be conscious of the need to keep their building safe by avoid adding any unauthorised structures to it," Mr Cheng said.

End/Sunday, March 19, 1995

New airport jobs for local construction workers *****

The Labour Department today (Sunday) urged local construction workers to contact the Local Employment Service (LES) if they intended to find a job in the new airport and related projects.

Senior Labour Officer in charge of the Employment Services Division. Mr Raymond Chan, disclosed that his office had received many job vacancies arising from the new airport and related projects.

"A variety of jobs, with monthly wages ranging from $10,000 to over $20,000. are now available for local construction workers who have employment priority under the Government’s importation of labour policy," Mr Chan added.

In order to let local construction workers know more of the availability of these jobs and the placement service of LES, an advertisement will be published in four local Chinese newspapers tomorrow (Monday).

"Local workers may call the jobs hotline 2492 2001 during office hours if they wish to seek more information."

9

The LES has been actively helping local construction workers to find jobs in the new airport and related projects. As a standing practice, information on job vacancies provided by contractors applying for imported workers will be displayed in all nine LES offices throughout the territory.

The vacancy information will also be sent to more than 20 relevant trade unions for dissemination to their members.

"To make sure that local workers are given priority in filling the vacancies, our officers will advise contractors to relax employment requirements if they are found to be restrictive.

"Contractors may suffer if they refuse to relax restrictive requirements because they will not be able to recruit sufficient local workers on the one hand and their applications for imported workers may be rejected on the other. Applications from employers found to have no sincerity in employing local workers will also be rejected," Mr Chan said. .

■ j; • ■ /• •• • • • • • •• • •

End/Sunday, March 19, 1995

Teacher Recruitment Information Office reactivated ♦ ♦ ♦ ♦ ♦

*! *•' : At . . • - ’ . » '-'A:.

The Education Department’s Teacher Recruitment Information Office (TRIO) will be reactivated tomorrow (March 20) to help local schools recruit quality people as teachers for the 1995-96 academic year.

Prospective teachers are welcome to register with the TRIO for assistance in finding a teaching appointment.

A department spokesman said the TRIO entered its third year of service this year.

"Last year, it attracted 4,634 applications. Among them, 2,881 were degree holders, 693 graduates from Colleges of Education, 379 diploma holders from approved post-secondary colleges and 681 held other qualifications."

The TRIO was approached by both primary and secondary schools for information on the applicants to fill a total of 1,170 teaching posts between May and August last year, the spokesman added.

10

"The TRIO sees as its mission the recruitment of not only a sufficient number of, but also quality people to groom our next generation. To this end, the TRIO will this year launch a series of publicity activities to attract both local and overseas candidates to join the teaching profession.

"Career talks will be arranged for fresh graduates of local tertiary institutes to enhance their understanding of the profession and encourage them to take up teaching as a career."

As part of the educational improvement package announced in the Governor's Policy Addresses in 1992 and 1993, 700 additional teaching posts will be needed in this September.

This, together with the number of vacancies arising from natural wastage, offers a lot of opportunities for potential teachers to join the profession.

Registration forms will be available from tomorrow (Monday) at the district offices of the Home Affairs Department and the Labour Department, and district education offices of the Education Department.

Applicants from tertiary institutes including the Hong Kong Institute of Education may obtain the forms at their own campus.

Enquiries may be directed to the Teacher Recruitment Information Office on tel 2782 7021, 2782 7526 or fax number 2781 0206 during office hours.

End/Sunday, March 19, 1995

Huge painting depicts anti-drug message ♦ ♦ ♦ ♦ ♦

The successful assembling of a 7,600 square metre-anti-drug painting demonstrates what can be done by a large number of people working together.

The Chairman of the Action Committee Against Narcotics, Professor Chen Char-nie, made this remark at the Anti-Drug Huge Painting cum Prize Presentation ceremony at Victoria Park today (Sunday).

The territory’s largest ever canvas painting is made up of 6,000 smaller paintings, each measuring about 1.5 square metres and carrying an anti-drug message. It is the work of about 10,000 young people from 21 schools and voluntary organisations.

. *

- 11 -

"Together they have contributed their time, talent and efforts depicting the harmfulness of drug abuse through their artistic creativeness and choice of colourful expressions," Professor Chen said. The Chairman stressed the importance of community joint effort in the fight against the drug problem in Hong Kong.

"A concerted effort involving government departments, voluntary agencies, commercial interests and individuals can really make an impact on the situation.

"We should therefore spare no efforts in recruiting our community members in the campaign against drugs," he said.

Aside from schools and voluntary organisations, the private sector has also joined in by turning an idea into reality, Professor Chen noted.

"One firm has generously contributed its transportation facilities in the delivery of canvas and latex paints to all participating schools and organisations, while another firm has been kind enough to undertake the strenuous work of cutting and sewing the 6,000 canvas pieces.

"Members of the Visual Arts Society have created a master work for superimposing onto this huge painting," he said.

"The joint efforts made in the past few months speak for themselves. They show that the community can gather together to beat drugs," he added.

End/Sunday, March 19, 1995

DAILY INFORMATION BULLETIN

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

Monday, March 20,1995

Contents Page No,

Expert talks on defence and public order.................................. 1

Agreement on repatriation of EC Vils welcomed............................. 1

Value of manufacturers' orders-on-hand in January 1995 ................... 2

Port expansion essential for economic growth.............................. 4

Recruitment of teachers for TOC teams..................................... 5

DBs' work fully recognised: DHA........................................... 7

Navy diver decorated...................................................... 8

Water storage figure...................................................... 9

Fresh water cut in Kowloon Tong........................................... 9

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

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

1

Expert talks on defence and public order ♦ * * * ♦

A 17th round of talks between experts on the British and Chinese sides of the Joint Liaison Group to discuss matters relating to Hong Kong's future defence and public order will be held in Hong Kong from March 21 to 23. The British team will be led by British Representative Mr Alan Paul. The Chinese team will be led by Chinese Representative Mr Chen Zuo'er. They will be assisted by experts from the two sides.

EndZMonday, March 20, 1995

Agreement on repatriation of EC Vils welcomed

*****

A Government spokesman welcomed today (Monday) the agreement reached between the Hong Kong and Chinese Governments on the repatriation of all the Ex-China Vietnamese Illegal Immigrants (ECVIIs) still stranded in Hong Kong.

"Officials of the Ministry of Civil Affairs, Guangxi and Guangdong and officials of the Hong Kong Immigration Department held an informal discussion on March 14 and 15 in Shenzhen to review the repatriation of ECVIIs since the last meeting in August 1993," the spokesman said.

. . . A I, . .

’’The meeting noted with satisfaction that over 2,100 ECVIIs have been returned to China smoothly through mutual understanding and co-operation.

"The meeting tackled the issue with great understanding, agreed that the repatriation process should be speeded up, and resolved a number of technical issues.”

It was agreed that all remaining ECVIIs in Hong Kong will be repatriated to China very soon.

End/Monday, March 20, 1995

2

Value of manufacturers' orders-on-hand in January 1995 ♦ * * * ♦

The value of manufacturers' orders-on-hand for local production in January this year increased by 6% over a year earlier, according to the provisional results of a monthly survey released today (Monday) by the Census and Statistics Department.

Comparing January 1995 with January 1994, a significant increase in the value of outstanding orders was recorded in the electronic products industry (+32%). Small increases in orders were also recorded in the wearing apparel industry (+3%) and the plastic products industry (+2%).

On the other hand, significant decreases in orders were registered in the fabricated metal products industry (-26%) and the textiles industry (-14%). Decreases in orders were also recorded in the electrical products industry (-8%) and the printing and publishing industry (-7%).

Compared with December 1994, and bearing in mind that this comparison may be affected by seasonal factors, the value of manufacturers' orders-on-hand in January 1995 increased by 9%.

The monthly survey of orders-on-hand covers a sample of some 300 manufacturing firms engaging 50 or more workers.

Manufacturers' orders-on-hand refer to orders and parts of orders received earlier by manufacturers for local production that remain unfilled as at the end of the reference month.

Orders received by traders not engaged in production are included if such orders are further placed to manufacturers for production locally.

However, orders placed to manufacturing firms for production in China and other places outside Hong Kong are not included in this series of orders-on-hand statistics.

A spokesman for the department pointed out that caution should be exercised in interpreting the manufacturers' orders-on-hand figures in a single month.

Instead, the trend movement of the series as displayed over a wider span of time points should be looked at, he said.

3

The survey report for January 1995, at $6 a copy, is now available for sale at the Government Publications Centre, Queensway Government Offices, Low Block, ground floor, Queensway, and at the Census and Statistics Department Publications Section, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai.

Enquiries about the survey results may be made of the Industrial Production Statistics Section of the Census and Statistics Department on telephone 2805 6441.

The following table shows the year-on-year percentage changes in the value of orders-on-hand in different manufacturing industries:

Percentage changes in the value of orders-on-hand in

December 1994 over December 1993 (Revised) January 1995 over January 1994 (Provisional)

All industries covered in the survey +9 +6

Wearing apparel -7 +3

Textiles +4 -14

Electronic products +33 +32

Electrical products + 16 -8

Fabricated metal products -21 -26

Plastic products +26 +2

Printing and publishing -12 -7

End/Monday, March 20, 1995

4

Port expansion essential for economic growth ♦ * * ♦ ♦

The implementation of Hong Kong's port development plans will greatly benefit the economies of both Hong Kong and China, Legislative Council members were told today (Monday).

* Briefing Legco's Trade and Industry Panel, the Secretary of the Port Development Board, Mr Tony Clark, said by expanding Hong Kong's port according to the strategic development plan, Hong Kong and its community stood to make substantial economic gains. Despite the expansion of Chinese ports there was no viable alternative to expanding Hong Kong's as well.

Hong Kong is the world's busiest container port and last year handled more than 11 million 20-foot equivalent units (TEUs).

Mr Clark said: "Handling those containers alone added $215 billion to the economy in 1994. Handling that cargo is essential to our economy.

"The port and related businesses provide jobs for some 350,000 people, or one in eight of our workforce. The port generates about 20 per cent of our GDP and supports some 20 per cent of all business establishments in Hong Kong.

"In terms of container growth, forecast demand on the port is such that throughput can be expected to treble by the year 2011. The great majority of this growth will be sourced from or destined for southern China.

"This forecast takes into account port development in China."

Mr Clark told Legco members: "If the facilities are not in place to meet demand, not only will there be congestion in Hong Kong's port, and its road approaches, but also the knock-on effect will result in similar congestion in Chinese ports.

"That will seriously delay the development of both Hong Kong's and China's economies and will hurt those service industries whose growth we seek."

5

He stressed that great emphasis had been placed on environmental measures in planning the port and a number of major design modifications had been made to minimise environmental impact.

Mr Clark added: "An environmental impact assessment (EIA) on Terminals 10 and 11 was considered by the Advisory Council on the Environment (ACE) on February 20. having been preceded by very lengthy deliberations on the matter by the ACE Committee on Environmental Impact Assessment. The council endorsed the project."

End/Monday, March 20, 1995

Recruitment of teachers for TOC teams ♦ * ♦ * *

The Education Department is increasing the input of experienced teachers into the development and teacher training of the Target Oriented Curriculum (TOC) by adding more teachers to its teams on the school-based preparatory programmes and design of teaching materials.

A circular is being sent to government and aided primary schools inviting serving Certificated Masters/Mistresses and Assistant Masters/Mistresses in the subjects of Chinese, English and Mathematics to take up temporary posts as tutors at the department's TOC Teacher Education Unit and members of the TOC Resource Development Team in the 1995-96 school year. Induction training will be provided to these teachers.

The recruits will be seconded to the Education Department for a year after which they will return to their own schools. A supply teacher will be employed for one year to fill the post vacated by the teacher who is on secondment to the Education Department.

A spokesman for the Education Department pointed out that the Advisory Committee on Implementation of TOC had recommended the appointment of experienced teachers to be tutors to assist in running a School-based Preparatory Programme to help schools better prepare for the implementation of TOC in the 1996-97 school year.

6

"These teachers will return to their schools at the end of their secondment with an enhanced understanding of TOC and of in-school teacher development. They can then play a major role in school-based staff development for TOC in their own schools," the spokesman said.

Since 1992, a total of 47 teachers have been seconded from various government and aided schools to serve as members of the TOC Resource Development Team in the TOC Development Unit to help develop resource materials, such as exemplar learning and assessment tasks, for teachers' reference and use.

The spokesman noted that when these teachers returned to their schools, they brought with them valuable experience and insight in developing and producing resources for their pupils.

"The experience helps in the implementation of TOC back at my own school," said one teacher who had been seconded to the TOC Resource Development Team, Ms Lam.

"In particular, it helps me set specific teaching targets and objectives and in designing the scheme of work. I am also able to help colleagues in my school when they have problems and doubts about TOC."

Another teacher who has also worked on the TOC Resource Development Team. Ms Ng, said: "As a member of the resource development team, I have a lot of opportunities to share with other members their teaching experience and to discuss and design teaching activities for TOC together.

"Not only has this given me an in-depth understanding of the targets, objectives and principles of my subject, it also helps me to anticipate problems and assess effectiveness more systematically."

The Education Department spokesman urged school principals to circulate the invitation letter and its attachment to all teachers in their schools and to encourage them to apply for the secondment posts, adding that both the teachers and the respective schools would benefit from the arrangement.

Applications should be sent to the Target Oriented Curriculum Section of the Education Department at 24 Tin Kwong Road. Kowloon, on or before April 3 through school heads. Enquiries may be directed to the department on tel 2762 2210 or 2712 8404.

Successful applicants and their school heads will be informed by April 28.

End/Monday. March 20. 1995

7

DBs' work fully recognised: DHA * ♦ ♦ * ♦

The Government attaches great importance to the work of the district boards, the Director of Home Affairs, Mr Joseph Wong, said today (Monday).

Speaking at a reception for members of the 18 district boards, Mr Wong said the Chief Secretary had recently issued an internal document to various heads of government departments, encouraging them to co-operate with the boards and listen to the members' views.

The establishment of a new Home Affairs Department on December 1 last year, he pointed out, was to improve the co-operation as well as the communications between the administration, the district boards and local residents.

Mr Wong also hoped that the relationship between the Government and the district boards could be enhanced through mutual trust and a better liaison.

As to the work of the Home Affairs Department, Mr Wong said the department had recently published a handbook which provided useful information about its roles and services.

Meanwhile, Mr Wong said the district board elections last year was a milestone in the further development of district administration.

The introduction of the new nine functional constituencies in the September Legislative Council elections was an unprecedented move, he said, noting that this arrangement enabled each functional group in the territory to have a representative in the law-making body.

In this connection, Mr Wong urged the district board members to cast their ballots in the LegCo elections and to support the voter registration of the functional constituencies.

End/Monday. March 20, 1995

8

Navy diver decorated

*****

A formerly Hong Kong-based Royal Navy sailor will collect a Queen's Gallantry Medal from Buckingham Palace in London tomorrow (Tuesday) for his underwater search for a 15-year-old boy in an inverted and unstable hull of a junk in Victoria Harbour nearly two years ago.

The incident occurred on July 15, 1993 when Leading Radio Operator (LRO) Nigel Griffiths was undertaking continuation training as a part-time ship's diver with the naval Clearance Diving Unit at HMS Tamar on Stonecutters Island.

The Unit was alerted that the boy, Cheng Kin- shing, was trapped inside the hull of the upturned junk 'Ying Kee 3'.

Within 14 minutes of the call, the diving unit was on the scene and ready to dive.

Although only a ship's diver, and consequently not formally trained for this type of contingency, LRO Griffiths had no hesitation in volunteering to dive inside the junk.

In all he entered the unfamiliar wheelhouse and compartments of the stricken vessel a total of six times during the course of two half-hour dives.

Each entry became progressively more dangerous as the junk settled in the harbour's choppy waters and more debris was dislodged inside the hull, reducing the already limited visibility in the oily water to less than a foot.

This did not deter LRO Griffiths who persisted in his search having heard tapping from inside the hull. He eventually left the water, under orders, immediately prior to the boat sinking.

LRO Griffith's selfless bravery was recognised by the award of a Queen's Gallantry Medal in November last year.

LRO Griffiths, now 31, served in the British Forces headquarters from January 1992 to August 1994 during which time he was accepted as a potential officer candidate.

Since leaving Hong Kong he has successfully completed a communications yeomans course in Britain, and gained three academic examination passes towards those he needs for an officer's commission.

End/Monday. March 20. 1995

9

Water storage figure * ♦ ♦ ♦ ♦

Storage in Hong Kong’s reservoirs at 9 am today (Monday) stood at 67.7 per cent of capacity or 396.961 million cubic metres.

This time last year the reservoirs contained 396.668 million cubic metres of water, representing 67.7 per cent of capacity.

End/Monday, March 20, 1995

Fresh water cut in Kowloon Tong ♦ ♦ * ♦ ♦

Fresh water supply to some premises in Kowloon Tong will be suspended from 11 pm on Wednesday (March 22) to 6 am the following day to facilitate water mains leakage detection.

The suspension will affect all the premises bounded by Waterloo Road, Prince Edward Road West, La Salle Road and Lancashire Road.

End/Monday, March 20, 1995

Hong Kong Monetary Authority tender results

*****

Tender date

Paper on offer

Issue number

Amount applied

Amount allotted

Average price (yield) accepted

Lowest price (yield) accepted

Pro rata ratio

Average tender price (yield)

End/Monday, March 20, 1995

20 Mar 95

EF notes

5003

HK$ 1,310 million

HKS500 million

100.61 (7.75 PCT)

100.55 (7.76 PCT)

About 41 PCT

100.42 (7.79 PCT)

10

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1.579 0930 + 1,073

Closing balance in the account 1,417 1000 +1,073

Change attributable to : 1100 + 1,026

Money market activity + 1,026 1200 + 1,026

LAF today -1,188 1500 + 1,026

1600 + 1,026

LAF rate 4.25% bid/6.25% offer TWI 118.1 *+0.0* 20.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.90 14 months 2605 6.35 100.07 6.38

1 month 5.16 23 months 2702 7.50 101.39 6.83

3 months 5.57 28 months 3707 6.95 100.18 6.98

6 months 5.86 34 months 3801 8.00 102.30 7.22

12 months 6.22 57 months 5912 8.15 102.37 7.68

Total turnover of bills and bonds - $12,210 million

Closed March 20, 1995

End/Monday, March 20, 1995

DAILY INFORMATION BULLETIN

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

Tuesday, March 21,1995

Contents

STI welcomes new appointment of WTO.............................. 1

Lau appointed chief of Royal Observatory........................

Land fund of future SARG......................................... 2

All ECVIIs to return to China.................................... 4

Tate’s Cairn Tunnel tolls up..................................... 5

Consumer Price Indices for February 1995 ........................ 6

Employment service well received by local workers............... 12

Newly reported drug abusers drop by 20 per cent................. 13

36 pollution cases in February.................................. 14

S800 million for elderly services............................... 14

Royal Observatory’s public weather services popular............. 15

White Paper on Annual Report on HK 1994 to Parliament published. 17

Fire-fighters commended for saving lives........................ 18

163 VMs return home voluntarily................................. 19

Hong Kong's terminal throughput jumps 19 per cent............... 19

Government committed to providing quality education............. 20

Hong Kong Monetary Authority tender results..................... 21

Hong Kong Monetary Authority money market operations............ 22

1

STI welcomes new appointment of WTO

♦ ♦ * ♦ ♦

The Acting Secretary for Trade and Industry, Mrs Regina Ip, said tonight (Tuesday) that she was pleased that the issue of who should replace Peter Sutherland as Director-General of the new World Trade Organisation appears finally to have been resolved.

She said: "Hong Kong is happy to join a consensus to appoint Mr Ruggiero, the former Italian Trade Minister. He is without doubt, an extremely capable individual and I am sure that he will lead the new Organisation with great skill and determination. Hong Kong looks forward to working with him over the next few years."

Hong Kong had earlier supported Korean Ambassador Kim's candidature but he withdrew from the race this morning.

But Mrs Ip said she was delighted to learn that Ambassador Kim is considering accepting a Deputy Director-General post as this would mean that his talents would not be lost to the Organisation.

It is understood that members of the Organisation will meet early tomorrow (Hong Kong time) to confirm the arrangements.

• :-n 7

Mrs Ip took the opportunity to express her appreciation of the tireless efforts of the outgoing Director-General, Peter Sutherland:

"Peter Sutherland has made an enormous contribution to ensuring the smooth functioning of the international trading system. His legacy is the World Trade Organisation and no one who was present in Geneva during the final days of the Uruguay Round can question the vital role which he played in ensuring its birth. We all owe him a great debt."

End/Tuesday, March 21, 1995

2

Lau appointed chief of Royal Observatory ♦ ♦ * ♦ ♦

The Government announced today (Tuesday) that Mr Lau Chi-kwan, Robert, had been appointed Director of the Royal Observatory with effect from May 26 this year.

Mr Lau will succeed Mr Patrick Sham who will be retiring from the Civil Service at the age of 60.

The following is the brief biography of Mr Lau and Mr Sham:

Mr Lau Chi-kwan, Robert, JP

Mr Lau is aged 53. He joined the Hong Kong Civil Service as a Scientific Officer in 1966 and was promoted to Senior Scientific Officer in 1978 and then to Assistant Director of the Royal Observatory in 1984. He has acted as Director of the Royal Observatory on a number of occasions.

Mr Sham Pak, Patrick. ISO. JP

Mr Sham joined the Civil Service as a Scientific Officer in 1958. He was promoted to Senior Scientific Officer in 1974, and to Assistant Director of the Royal Observatory in 1978. He has been Director of the Royal Observatory since 1984. He was awarded an ISO in 1988.

End/Tuesday, March 21, 1995

Land fund of future SARG

*****

In response to media enquiries on the Land Fund of the future Special Administrative Region Government (SARG), a Government spokesman said today (Tuesday):

"The Medium Range Forecast is a five-year forecast of government's revenue, expenditure and fiscal reserves. It is a planning tool to assist with the determination of budgetary policy.

3

’’The Medium Range Forecast published with the Financial Secretary’s Budget on March 1, 1995 covers a five-year period (1994-95 to 1998-99) in accordance with our normal planning practice.

"In his Budget Speech (para 95) the Financial Secretary has emphasised that this is a forecast only, presented to provide the appropriate context for planning purposes and that, in no way, does it impose any commitment on the future SARG.

’’The final year of the Medium Range Forecast (1998-99) is the first full financial year after the change of sovereignty and the establishment of the SARG. It is clearly a matter for the SARG to determine how best to manage and use the balance it will inherit from the Land Fund come July 1, 1997.

"However, to properly present an overall picture of the likely financial strength of the future SARG, account must be taken of the forecast balance of both the fiscal reserves to be passed on by the Hong Kong Government and the Land Fund. This is what we have done in the published Medium Range Forecast.

"The estimate of the balance of the Land Fund of $138.5 billion at July 1, 1997 is derived on the basis of :-

the published balance of the fund at March 31, 1994 ($65.5 billion);

* our published revised estimate of gross land revenue in 1994-95 and our

published estimate of gross land revenue in 1995-96;

the forecast gross land revenue from 1 April 1996 to June 30, 1997 based on a historical analysis of the relationship between land revenue and GDP. We have adopted a conservative approach in making this forecast;

the sharing arrangement for gross land revenue as provided for in the Joint Declaration; and

a modest level of interest earnings on the accumulated balance of the fund.

"We believe this assessment to be realistic based on a historical analysis of land revenue and after taking account of the attractive and valuable sites which may be released to the market over the forecast period.

"We recognise that the HKSARG Land Fund Trust was established by the Chinese side of the Land Commission and it is of course for the trustees to manage the Fund until the balance is transferred to the SARG."

End/Tuesday, March 21, 1994

4

All ECVIIs to return to China

*****

In response to press enquiries, a Government spokesman confirmed today (Tuesday) that all the ECVIIs in Hong Kong will be repatriated to China pursuant to the agreement reached between the Hong Kong and Chinese Governments on March 14 and 15. They number about 340 in total.

’’The ECVIIs came from a number of provinces, principally Guangxi, Guangdong, Yunnan, Hainan and Fujian. They will be returned to their provinces of origin.

”As a number of provinces are involved, some operational details still need to be sorted out,” the spokesman added. "We hope actual departures will commence in mid-April, and the repatriation process will take a few months to complete."

The spokesman also confirmed that in order to expedite the return of the residual caseload of ECVIIs, both sides agreed that certain formalities which otherwise would be dealt with in Hong Kong would now be completed after the ECVIIs had been returned to China.

He further confirmed that the Hong Kong Government had agreed to make a contribution of $500,000, which was equivalent to keeping the 340 ECVIIs in Hong Kong for about 12 days, to the additional costs which would arise from this arrangement.

The spokesman emphasised that it was agreed by both governments that the ECVII saga should be closed as soon as possible.

"The Chinese side will incur some additional costs in expediting the process under the new arrangement and the Hong Kong Government agrees to contribute to some of these costs.

"Both sides agreed that it sets no precedents for any future ECVIIs, to whom the previously agreed arrangements will continue to apply," he said.

End/Tuesday, March 21, 1995

5

Tate's Cairn Tunnel tolls up ♦ * * ♦ ♦

The Govemor-in-Council today (Tuesday) advised that tolls at the Tate's Cairn Tunnel should be increased with effect from May 1.

The new toll structure will be as follows:

Vehicles Existing Toll New Toll

Private cars, taxis & motorcycles $4 $6

Light buses & light goods vehicles $7 $10

Medium goods vehicles, heavy goods vehicles & buses $8 $15

Extra axle $5 $5(unchanged)

A Government spokesman said this was the first toll increase for the company since the tunnel was opened to traffic in June 1991.

"The toll revision is necessary to allow the company to repay bank loans and to keep them on target to secure a reasonable return on their investment over the 30-year life of the franchise," he said.

The spokesman added that from a transport management viewpoint, the toll increase would not result in a major traffic diversion from the Tate's Cairn Tunnel to other alternate routes such as the Lion Rock Tunnel.

"The new private car tolls would be the same as that charged at the Lion Rock Tunnel, that is, $6," he said.

• • -•’ •••'• .

The spokesman added that since tunnel tolls accounted for only a small proportion of total household expenditure, the inflationary impact would be insignificant.

End/Tuesday, March 21, 1995

6

Consumer Price Indices for February 1995 ♦ ♦ ♦ ♦ ♦

The Consumer Price Index (A) in February 1995 was 8.9% higher than in February 1994, according to figures released today (Tuesday) by the Census and Statistics Department. This was significantly lower than the corresponding increase of 10.1% in January this year.

Commenting on the moderation, a Government spokesman said the prices of vegetables and charges for hair-dressing and package tours had returned to a more normal level in the latter part of February after the seasonal upsurge around the Chinese New Year. Furthermore, the rates of increase in the prices of salt-water fish and pork also slowed down.

The rate of increase in the Consumer Price Index (B) and the Hang Seng CPI also moderated. Their respective rates of increase in February 1995 were 9.6% and 9.7%, compared with the corresponding increases of 10.4% and 10.3% in January.

The Composite CPI, which is compiled based on the combined expenditure pattern of households covered by the three CPIs, showed an increase of 9.4% in February 1995 over the same month in 1994. This was also significantly lower than the corresponding increase of 10.3% in January.

Comparing February 1995 with February 1994, relatively slower price increases than the overall average increase were recorded for durable goods (4.3% in the CPI(A) and 4.5% in the CPI(B)); alcoholic drinks and tobacco (4.4% and 4.9%); food (excluding meals bought away from home) (6.5% and 6.2%); meals bought away from home (7.1% and 6.8%); fuel and light (7.6% and 7.8%); transport (8.3% in both the CPI(A) and CPI(B)); and miscellaneous goods (8.3% in the CPI(A) and 7.2% in the CPI(B)).

On the other hand, relatively faster price increases than the overall average increase were recorded for housing (12.8% in the CPI(A) and 14.4% in the CPI(B)); clothing and footwear (11.7% and 12.8%); and miscellaneous services (11.4% and 10.6%). Comparing February 1995 with January 1995, the CPI(A) and CPI(B) both increased by 0.8%. The corresponding increase for the Composite CPI was 0.7%.

Taking the first two months together, the increases in the CPI(A) and CPI(B) averaged at 9.5% and 10.0% respectively. The corresponding increase for the Composite CPI was 9.8%.

- 7 -

For the 3 months ended February 1995, the CPI(A) and CPI(B) were, on average, higher by 9.3% and 9.8% respectively over a year earlier. The corresponding increase for the Composite CPI was 9.7%. •few* • **

For the 12 months ended February 1995, the CPI(A) and CPI(B) were, on average, higher by 8.5% and 9.0% respectively than in the preceding 12-month period. The corresponding increase for the Composite CPI was 9.1%.

Seasonally adjusted series are also available for the CPIs. The deseasonalised CPI(A), CPI(B) and Composite CPI all increased at an average rate of 0.7% per month during the three months ended February 1995.

The Consumer Price Index Report

More details are given in the ’’Consumer Price Index Report” for February 1995, which is available at $23.0 per copy from the Government Publications Centre, Queensway Government Offices, Low Block, Ground Floor, 66 Queensway, Hong Kong; or from the Publications Section of the Census and Statistics Department, 19/F., Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong. For local and overseas mailings, contact should be made with the Information Services Department, French Mission Building, 1 Battery Path, Hong Kong.

For enquiries about the indices, please telephone the Consumer Price Index Section of the Census and Statistics Department at 2805 6403. Details regarding the Hang Seng CPI are contained in the Hang Seng CPI Report issued by the Economic Research Department of Hang Seng Bank Ltd.

- 8 -

Table 1 • • • Ccnpcnent Consumer Price Indices and Rates of Increase for February 1995

(Oct. 89 - Sep. 90 = 100) Ccrroosite CPI

CPI (A) CPI(B) Hang Seng CPI

Index for Feb 95 % change over Feb 94 Index for Feb 95 % change over Feb 94 Index for Feb 95 % change over Feb 94 Index for Feb 95 % change over Feb 94

Food 149.4 +6.8 151.0 +6.6 152.9 +7.1 150.7 +6.8

Meals bought away from hone 159.7 +7.1 159.1 +6.8 159.8 +7.7 159.5 +7.1

Food, excluding meals bought away from home 139.2 +6.5 139.9 +6.2 141.2 +6.1 139.8 +6.3

Housing 177.5 +12.8 181.9 +14.4 185.1 +13.4 181.5 +13.6

Fuel and light 131.2 +7.6 130.8 +7.8 130.1 +6.7 130.9 +7.5

Alcoholic drinks and tobacco 189.8 +4.4 179.9 +4.9 174.9 +4.6 184.2 +4.6

Clothing and footwear 139.9 +11.7 141.3 +12.8 151.2 +12.2 144.3 +12.3

Curable goods 114.8 +4.3 114.2 +4.5 119.4 +4.8 115.9 +4.5

Miscellaneous goods 139.3 +8.3 134.6 +7.2 132.4 +7.0 135.8 +7.6

Transport 153.5 +8.3 153.3 +8.3 153.2 +8.4 153.3 +8.3

Miscellaneous services 171.5 +11.4 165.4 +10.6 153.1 +8.0 163.6 । +10.1

All items 155.4 +8.9 156.6 +9.6 159.0 +9.7 156.7 +9.4

Monthly consumer price indices are caipiled cn the basis of (a) expenditure patterns of relevant households and (b) prices collected currently in the month. The expenditure patterns underlying the 1989/90-based consumer price indices are based cn those patterns derived f rem the 1989/90 Household Expenditure Survey. The CPI (A) is based cn the expenditure pattern of about 50% of households in Hong Kong, which had an average monthly expenditure of $2,500-$9,999 in 1989/90(broadly equivalent to $3,600-$14,600 at 1994 prices). The CPI(B) is based cn the expenditure pattern of the next 30% of households, which had an average monthly expenditure of $10,000-$17,499 in 1989/90(broadly equivalent to $14,600-$26,000 at 1994 prices). The Hang Seng CPI is based on the expenditure pattern of the next 10% of households, which had an average monthly expenditure of $17,500-$37,499 in 1989/90(broadly equivalent to $26,000-$56,000 at 1994 prices).

Whereas the CPI (A), CPI(B) and Hang Seng CPI are based on the expenditure patterns of groups of households with different magnitudes of household expenditure, the Ccnposite CPI is compiled based cn the expenditure pattern of all these households taken together. Thus, while the CPI (A), CPI(B) and Hang Seng CPI show the impact of consumer price changes cn different groups of households, the Ccnposite CPI shows the impact of ccnstmer price changes on the household sector generally.

9

Table 2 Consumer Price Indices for January 1992 - February 1995 (Oct. 89 - Sep. 90 = 100)

Year/month CPI(A) CPI(B) Hang Seng CPI Conposite CPI

1992 January 119.7 119.3 .... j., 119.4 119.5

February 121.8 121.2 121.0 121.4

March 122.5 121.9 121.8 122.1

April 124.0 123.4 122.9 123.5

May 124.0 123.8 124.2 124.0

June 125.3 125.1 . 125.2 125.2

July 125.5 125.4 125.4 125.4

August 125.6 125.9 125.8 125.8

September 128.3 127.9 127.5 128.0

October 128.4 128.4 128.6 128.5

November 128.5 129.0 129.9 129.0

December 129.3 129.8 130.0 129.7

1993 January 131.8 131.6 131.5 131.7

February 132.4 132.2 132.0 132.2

March 132.0 132.2 133.1 132.4

April 133.5 133.9 134.5 133.9

May 134.5 134.8 136.3 135.1

June 136.0 135.9 137.1 136.3

July 135.8 136.1 136.9 136.2

August 136.3 136.6 137.4 136.7

September 138.4 138.3 139.2 138.6

October 140.0 139.6 140.7 140.0

November 139.4 139.9 142.2 140.3

December 140.4 140.9 143.3 141.3

1994 January 140.0 140.7 143.4 141.1

February 142.7 142.9 144.9 143.3

March 142.5 143.0 145.3 143.4

April 143.8 144.8 147.9 145.2

May 145.0 146.1 150.0 146.7

June 146.2 146.9 151.0 147.7

July 147.3 147.9 150.5 148.3

August 149.6 149.6 151.7 150.1

September 150.3 150.8 153.4 151.3

October 151.1 152.2 155.3 152.6

November 151.4 153.1 157.3 153.5

December 153.0 154.3 158.1 154.8

1995 January 154.1 155.3 158.2 155.6

February 155.4 156.6 159.0 156.7

10

Chart 1 Year-on-year Rates of Increase in CPI(A)

Chart 2 Year-on-year Rates of Increase in CPI(B)

Rate of increase (%)

11

Chart 3 Year-on-year Rates of Increase in Hang Seng CPI

Chart 4 Year-on-year Rates of Increase in Composite CPI

End/Tuesday, March 21, 1995

12

Employment service well received by local workers

♦ * * ♦ ♦

The Commissioner for Labour, Mr Stephen Ip, visited the Labour Department's Tsuen Wan Local Employment Service (LES) Office this (Tuesday) afternoon to see how staff members helped local construction workers find jobs connected with the new airport and related projects.

Mr Ip was told that the latest exercise in assisting local workers finding jobs in new airport projects received good response as hundreds of telephone calls for job information had been received through the jobs hotline 2492 2001.

In addition, many Workers had approached the nine LES offices looking for jobs and 129 referrals for job interview had been arranged between 9 am yesterday (Monday) and 5pm today.

Speaking to reporters after the visit, Mr Ip asked the news media to help publicise the employment service being offered to local construction workers.

The Commissioner reiterated that as a Government policy on importation of labour, local workers should be given priority in filling job vacancies available from the new airport projects.

Mr Ip stressed that to ensure the implementation of this policy, Labour Department officers would remind contractors applying for importation of foreign workers to make sure that their employment requirements are not restrictive or unreasonable.

"We will keep tack of contractors who ignore our advice and their applications may be rejected as a result," Mr Ip said.

He said his department would look into any complaints made by local workers concerning restrictive employment conditions and take appropriate measures if the complaints were substantiated.

End/Tuesday, March 21, 1995

13

Newly reported drug abusers drop by 20 per cent * ♦ ♦ ♦ ♦

The number of drug abusers reported for the first time to the Government's Central Registry of Drug Abuse (CRDA) declined in the fourth quarter of 1994 after rising in the first three quarters of the year, according to quarterly figures released today (Tuesday).

The number of newly reported persons of all ages has dropped by 20.3 per cent to 988 in the fourth quarter of 1994 from 1,240 in the corresponding period in 1993, following increases of 15.2 per cent, 20.8 per cent and 9.3 per cent in the preceding three quarters.

Within the figure, the number of newly reported young drug abusers under 21 has decreased from 653 in the fourth quarter of 1993 to 513 in the same period of 1994, representing a decrease of 21.4 per cent. As for newly reported drug abusers aged 21 or above, the number has dropped by 19.1 per cent to 475 as compared with 587 in the same period in 1993.

The statistics, compiled by the CRDA, were given to members of the Action Committee Against Narcotics (ACAN) at its meeting held this afternoon.

Members were told that the whole year figure of all drug abusers reported to CRDA increased by 13.3 per cent to 20,046 and the new cases by 13.5 per cent to 4,863.

This showed a slacker growth when compared with the corresponding changes for 1993 over 1992, which were 16.3 per cent and 44.1 per cent respectively.

The number of drug abusers aged under 16 recorded a sharp rise of 47 per cent from 584 reported in the whole year of 1993 to 858 in 1994, leading to a slight decrease in the average age of all drug abusers reported, from 34.7 in 1993 to 34.4 in 1994.

Among drugs commonly abused in Hong Kong, heroin (93.5 per cent), cannabis (5.8 per cent) and cough medicine (2.9 per cent) remained the major types of drug abused by addicts of all ages.

In the fourth quarter of 1994, a total of 4,763 persons were admitted to the three major publicly-funded treatment programmes, run by the Society for the Aid and Rehabilitation of Drug Abusers (SARDA), the Department of Health and the Correctional Services Department.

14

Of the total figure, 1,229 or 25.8 per cent were first time admissions. These represented an increase in total admissions by 40.2 per cent and an increase in new admissions by 42.2 per cent.

The increase in new admissions was highest in the under-21 group in the Methadone Treatment Programme, by 85.5 per cent, followed by the SARDA programme, by 46.9 per cent.

End/Tuesday, March 21, 1995

36 pollution cases in February * ♦ ♦ ♦ *

A total of 36 convictions were made in the courts last month for breaching antipollution law enforced by the Environmental Protection Department (EPD).

Among them, 17 were convictions made under the Air Pollution Control Ordinance (APCO), 11 under the Water Pollution Control Ordinance (WPCO), four under the Noise Control Ordinance (NCO), three under the Ozone Layer Protection Ordinance (OLPO) and one under the Dumping At Sea Act 1974 (Overseas Territories) Order 1975 (DASO).

The fines ranged from $1,000 to $50,000. Man Luen Hong Motor Company Ltd was fined $50,000 upon its second conviction for discharging polluting matter in the Deep Bay Water Control Zone.

End/Tuesday, March 21, 1995

$800 million for elderly services *****

The Government will spend $800 million over the next few years to implement the 71 recommendations of the Working Group on Care for tire Elderly, the Director of Social Welfare, Mr Ian Strachan, said today (Tuesday).

Speaking at the opening ceremony of the Po Leung Kuk Siu Ming Memorial Home cum Care and Attention Unit, Mr Strachan said there was a growing demand for services for the senior citizens in Hong Kong.

- 15 -

"In October 1994, the Executive Council endorsed the Report of the Working Group on Care for the Elderly.

"The Government's goal is to improve the quality of life of old people so that they can enjoy a comfortable and dignified old age.

"A comprehensive approach will be adopted in the development of services for elderly people," he said.

Mr Strachan said the memorial home opened today marked a further step in Po Leung Kuk's expansion of residential services for the elderly.

"This new Home, being located in Lam Tin Estate, has been in operation since October 1994, providing 102 meal places and 44 care-and-attention places," Mr Strachan added.

End/Tuesday, March 21, 1995

Royal Observatory's public weather services popular ♦ ♦ * * ♦

Members of the public can learn more about the work of the Royal Observatory at its "open day" from Thursday (March 23) amidst growing popularity of weather information.

In celebration of the annual World Meteorological Day, the "open day" will feature an exhibition on the theme "Public Weather Services", the Director of the Royal Observatory, Mr Patrick Sham, said today (Tuesday).

The Royal Observatory headquarters in Tsim Sha Tsui will be open to the public from 2 pm to 5 pm on Thursday after an opening ceremony in the morning and from 9.30 am to 5 pm on the next two days (Friday and Saturday).

Regarding the operations and services of the Royal Observatory, Mr Sham said at today’s media session that the dial-a-weather system had been extremely popular last year.

The number of calls to the system soared to 13 million last year, about 36,000 a day, and reaching 110,000 during a day of bad weather.

16

Up to now, the number of callers had increased markedly, by about 60 to 70 per cent over that for the same period last year.

On weather forecasts, he said according to an independent survey, last year the public considered that the forecast accuracy level reached 76 per cent.

’’This matched our performance target of 75 per cent in our pledge put out in the beginning of last year."

Airline operators assessed the Observatory’s forecasts for aviation to be 98 per cent accurate or very accurate last year and ship captains’ assessment of the marine weather forecast accuracy reached 95 per cent.

Organisers of public outdoor events such as the annual Lunar New Year Fireworks Display also found the special forecast services of the Observatory useful for planning purposes and in many cases, helped them to carry out the functions satisfactorily and cost-effectively.

Mr Sham said: "We are not complacent and we will strive to further improve on these services."

The Observatory, which monitors the environmental nuclear radiation in Hong Kong, has been providing daily information on the gamma radioactivity in Hong Kong to the media for the public starting two weeks ago.

"To enhance our capability of real-time monitoring of any atmospheric release from the nuclear power station, the Royal Observatory is in the process of acquiring an aerial monitoring system.

"This system will be fitted into a helicopter of the Hong Kong Government Flying Service which will be flown during a nuclear emergency to help us track any radioactive plume from the power station," he said.

On environmental and geophysical data and consultative services, the Royal Observatory plans to upgrade and expand some observational networks.

"These plans include the expansion of the seismological network within the territory, and the networking of automatic weather stations operated by Guangdong Weather Bureau, Macao Meteorological Observatory and Royal Observatory Hong Kong," he said.

17

The number of automatic weather stations for monitoring hazardous weather over the Pearl River Delta region will also be increased.

As the rainy season is approaching, Mr Sham called for precautions against flooding, landslip and typhoon damage.

End/Tuesday, March 21, 1995

White Paper on Annual Report on HK 1994 to Parliament published *****

The Annual Report on Hong Kong 1994 to Parliament (Annual Report) has been presented to Parliament by Her Majesty’s Government today (Tuesday).

As in past years, the Annual Report has been published in the form of a white paper both in London and Hong Kong. The white paper will be tabled at the Legislative Council tomorrow (Wednesday).

A Government spokesman said Her Majesty’s Government had agreed in 1985, during the Parliamentary debates on the Hong Kong Bill, to produce annual reports on Hong Kong and to lay them before Parliament.

The purpose of this series of reports is to keep Parliament informed of developments in Hong Kong regularly.

The Annual Report is the 10th such report. It contains a survey of major events in Hong Kong during 1994.

Topics covered include visits to Hong Kong by members of the Royal Family and Government ministers and visits by the Governor of Hong Kong.

They also include constitutional development, contacts between Hong Kong and China, human rights, Vietnamese migrants, migration and nationality, infrastructure, general economic and social conditions, law and order, legal and judicial systems and the civil service.

18

Copies of the White Paper on the Annual Report and the Chinese translation will be available, free of charge, to members of the public from tomorrow.

They can be obtained from all District Offices, the Government Publications Centre on ground floor, low block, Queensway Government Offices, and the Government Publications Sales Section of the Information Services Department at French Mission Building, 1 Battery Path, Central.

End/Tuesday, March 21, 1995

Fire-fighters commended for saving lives *****

Seven firemen were awarded the Chief Fire Officer's Commendation for rescuing four people in a fire at Sau Mau Ping Estate two weeks ago.

Speaking at a presentation ceremony today (Tuesday), Chief Fire Officer (Kowloon) Mr Henry Tang Siu praised the officers for their bravery and swift action in the fire-fighting and rescue operation.

"They demonstrated a very high standard of performance with professionalism," he said.

The fire broke out in the corridor outside two domestic units in Block 43 of Sau Mau Ping Estate at about 5 am on March 6. Minutes later, it burned fiercely and emitted thick smoke.

To avoid the heat and smoke, two men inside one of the affected units climbed out of the window and stayed on a small canopy waiting for help.

Firemen soon arrived at the scene and started putting out the fire. Some broke into the premises and rescued the pair within six minutes.

Another team of firemen also quickly dashed into the flame and smoke logged unit next door and rescued a couple.

The awardees were Senior Station Officer Chung Wing-kwong, Senior Firemen Ho Yau-sang and Leung Wai-tung, Firemen Chu Wai-kwok, Li Chi-hung, Chan Wai-kei and Chan Wai-hung.

End/Tuesday, March 21, 1995

19

163 VMs return home voluntarily ♦ * * ♦ ♦

A group of 163 Vietnamese Migrants today (Tuesday) returned to Vietnam under the Voluntary Repatriation Programme of the United Nations High Commissioner for Refugees. f 9

Comprising 78 men, 38 women, 27 boys and 20 girls, they were the 227th batch to go back under the programme.

The group brought to 673 the total number of Vietnamese Migrants who had returned voluntarily this year, and to 44,867 the total number of returnees since the programme started in March 1989.

End/Tuesday, March 21, 1995

Hong Kong’s terminal throughput jumps 19 per cent *****

In the first two months of the year the eight container terminals at Kwai Chung and Stonecutters Island handled 1.15 million TEUs. That is a 19 per cent increase over the first two months of 1994.

In January, the terminals handled 665,703 TEUs, a rise of 18.43 per cent over the 562,126 TEUs moved in January 1994. In February, the terminal throughput was 482,398 TEUs, up 20.1 per cent over the February 1994 figure of 401,657 TEUs.

The lower February figures are a result of the terminals closing during the Lunar New Year holidays.

The 19 per cent increase in terminal throughput follows a record year in 1994 when Hong Kong handled more than 11 million TEUs. Of this total, the terminals handled 7.27 million TEUs, while 2.8 million TEUs were handled midstream and the rest was river trade.

So far, official figures for midstream and river trade throughput for the first two months of this year are not available, but Hong Kong’s port seems headed for another record year.

End/Tuesday, March 21, 1995

20

Government committed to providing quality education *****

The Government is fully committed to providing quality education and training for the young people in keeping with the changing circumstances of Hong Kong, the Chief Secretary, Mrs Anson Chan, said today ^Tuesday).

Speaking at the Topping-out Ceremony of the Tuen Mun New Campus of Lingnan College, Mrs Chan said since the announcement of the tertiary education expansion plan in 1989, the proportion of eligible students who had had access to first-year first-degree places had doubled.

She said: "In 1994, we reached our target of providing 18 per cent of our eligible students with first-year first-degree places which amounted to 14,500 places in the local tertiary institutions."

Turning to the College's new campus development project, Mrs Chan said it marked a milestone in the history of the College as it became the first residential liberal arts college in the territory.

"Construction cost of the main campus amounted to $435 million and that of the student hostels, another $107 million, all funded by the Government.

"1 am certain that all staff and students will benefit greatly from the new campus," she added.

The new campus will house some of the most advanced academic, administrative and amenities facilities, in addition to providing student hostels. President's Lodge, staff quarters and an auditorium.

End/Tuesday, March 21, 1994

21

Hong Kong Monetary Authority tender results ♦ ♦ ♦ ♦ *

Tender date 21 Mar 95 21 Mar 95

Paper on offer EF bills EF bills

Issue number Q512 Y587

Amount applied HK$7,260 MN HKS2.830 MN

Amount allotted HK$ 1,500 MN HKS500 MN

Average yield accepted 5.54 PCT 6.22 PCT

Highest yield accepted 5.54 PCT 6.23 PCT

Pro rata ratio About 98 PCT About 96 PCT

Average tender yield 5.58 PCT 6.27 PCT

Hong Kong Monetary Authority

Tenders to be held in the week beginning March 27, 1995

Tender date 28 Mar 95 28 Mar 95

Paper on offer EF bills EF bills

Issue number Q513 H561

Issue date 29 Mar 95 29 Mar 95

Maturity date 28 Jun 95 27 Sept 95

Tenor 91 days 182 days

Amount on offer HK$ 1,500+300 MN HK$800+160 MN

End/Tuesday, March 21, 1995

- 22 -

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,417 0930 +1,172

Closing balance in the account 1,366 1000 +1,199

Change attributable to : 1100 + 1,200

Money market activity +1,200 1200 +1,200

LAF today -1,251 1500 + 1,200

1600 +1,200

LAF rate 4.25% bid/6.25% offer TWI 118.2 *+0.1* 21.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.84 14 months 2605 6.35 100.15 6.30

1 month 5.11 23 months 2702 7.50 101.51 6.76

3 months 5.52 28 months 3707 6.95 100.34 6.90

6 months 5.79 34 months 3801 8.00 102.47 7.15

12 months 6.16 60 months 5003 7.75 100.86 7.68

Total turnover of bills and bonds - $20,547 million

Closed March 21, 1995

End/Tuesday, March 21, 1995

DAILY INFORMATION BULLETIN

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

Wednesday, March 22, 1995

Contents Page No-

Secretary for Recreation and Culture to retire.......................... 1

Statement by Governor on retirement of Secretary for Recreation and Culture 1

Govt takes further steps to improve airport site safety................. 2

Purchase of offices by Government Property Agency....................... 4

Residential mortgage survey results for February 1995 .................. 5

Plugs and adaptors regulation in force tomorrow......................... 10

Waste charging scheme to be modified.................................... 11

Licensing of telecommunication services in HK........................... 12

Two New Territories lots to let......................................... 13

Slogan Design Competition to promote teacher image...................... 14

HK's largest water pumping station begins operation..................... 15

Hong Kong Monetary Authority money market operations.................... 16

1

Secretary for Recreation and Culture to retire

*****

The Government announced today (Wednesday) that the Secretary for Recreation and Culture Mr James So Yiu-cho's application for retirement has been accepted. Mr So is aged 55. He will retire from active service in late September this year.

An announcement on his successor will be made in due course.

The Chief Secretary, Mrs Anson Chan, paid tribute to Mr So for his long and loyal service.

"James has served the Government and the community with dedication for 33 years," Mrs Chan said. "He has reached 55 and has decided to exercise his option to retire. We must respect his decision. James has been a valued colleague and we will be very sorry to see him go."

Mr So has been Secretary for Recreation and Culture since June 8, 1991.

Attention News Editors:

Mr So will meet media representatives in his office on the 41st floor of Revenue Tower, 5 Gloucester Road, Wan Chai at 5 pm today. You are invited to attend.

End/Wednesday, March 22, 1995

Statement by Governor on retirement of Secretary for Recreation and Culture

*****

The following statement is issued by the Governor, the Rt Hon Christopher Patten:

"Mr James So has given dedicated and valuable service to the community during his 33 years in the civil service. I have very much enjoyed working with him over the last two-and-a-half years, and like the Chief Secretary and his colleagues and friends in the civil service, I shall be very sorry to see him go."

End/Wednesday, March 22, 1995

2

Govt takes further steps to improve airport site safety - * «.?)» < j ■ ♦ ♦ ♦ ♦ ♦

The Government is continuing to introduce new initiatives to further step up safety on the Airport Core Programme (ACP) sites, the Secretary for Works, Mr James Blake, said today (Wednesday).

<1. ’

He was speaking at the award-presentation ceremony of the 1994 AGP Construction Safety Award Scheme organised by the New Airport Projects Coordination Office (NAPCO).

Mr Blake said the new arrangements were designed to maintain the improving trend and to achieve the ACP safety targets. These new arrangements include: '

* project offices to appoint more site staff to manage safety on ACP sites;

' •. . ■' . -;V: .

* Labour Department to assign more factory inspectors to its ACP team;

« * ./M

Works Branch to introduce regulatory action against contractors who have high accident rates.

Mr Blake said considerable effort had been made last year to further enhance safety management and practices on ACP sites.

The safety efforts of all parties concerned had produced positive results and an improving trend was maintained, he said.

» • • • • • - > *15 . I

The fatal accident rate and non-fatal accident rate for ACP contracts in 1994 was 0.6 fatalities per thousand workers per year and 92 accidents per thousand workers per year, which was 38 per cent and 12 per cent respectively lower than the figures in 1993.

“These improvements were achieved despite an increase in the labour force of about 60 per cent. The corresponding fatal and non-fatal accident rates for the construction industry as a whole were 1.4 and 294 in 1993,” he said.

However, despite the improving trend, the ACP safety results were still not good enough, Mr Blake said.

“They are still slightly higher than our targets, and it is clear that these very stringent targets for ACP will only be achieved if everybody involved - contractors, workers, consultants and Government staff alike - increase their safety endeavours still further," he said.

3

The ACP Construction Safety Award Scheme was introduced in 1993 to promote construction safety on the ACP works sites and to reduce accidents.

The Safety Management Award was presented to six sites with a high quality of safety management and with good safety records. The second award, the Safety Record Award, went to nine sites with good safety records.

ACP contractors had made considerable effort last year to improve safety on ACP sites. For instance, many ACP contractors have introduced safety incentive and penalty schemes and regularly publish newsletters and conduct talks to promote construction safety among their sub-contractors and workers, Mr Blake said.

He said last year, the Government had also made further effort to enhance ACP site safety. These included:

appointing more site supervisory staff dedicated to safety matters to strengthen monitoring of ACP contractors' activities;

* appointing consultants to provide training to management and site supervisory staff to improve their safety awareness and upgrade their knowledge of construction safety;

setting up safety units in the works departments to provide safety advice and carry out audits of safety standards on government sites;

expanding the Labour Department's ACP team in enforcing safety legislation on ACP sites;

producing and distributing pocket-sized safety hint cards to workers and supervisory staff; and

* introducing regulatory action against contractors who repeatedly violate safety legislation.

Mr Blake said it was pleasing to note that last year, about 50 per cent of the ACP contracts achieved the safety targets of zero fatalities and fewer than 60 reportable accidents per thousand workers per year.

"These contractors prove to all of us that the ACP safety targets, although much more stringent than the norm in Hong Kong, can in fact be achieved if given adequate priority and efforts," he said.

4

Also officiating at the award-presentation ceremony, the Chairman of the Consultative Committee on the New Airport and Related Projects (ACC), Dr Wong Po-yan, said: "One of our key concerns is the industrial safety of the thousands of workers working on various ACP sites.

"We firmly believe that safety of workers must take priority over programme and cost considerations.

"My committee has stressed that the safety of the thousands of workers who are building for our future must be safeguarded at all times," he said.

Dr Wong said he was glad that stringent safety requirements had been incorporated into the ACP contracts and other complementary safety measures had been introduced with the aim of achieving a high safety standard for the ACP.

"So far, the ACP safety record is amongst the best when compared with other construction sectors in Hong Kong and an improving trend is maintained.

"However, this is no reason for complacency. The ACC will continue to keep a close watch on ACP construction safety as the projects progress," he said.

Also officiating at the ceremony were Legislative Councillor, Mr James Tien; the Chairman of the Hong Kong Construction Industry Employees General Union, Mr Poon To-chuen; the Secretary-General of the Hong Kong Construction Association, Mr Patrick Chan; the Chairman of the Occupational Safety and Health Council, Professor Leung Ping-chung; the Commissioner for Labour, Mr Stephen Ip; the Acting Director of Fire Services, Mr Peter Cheung and the Director of NAPCO, Mr Billy Lam.

End/Wednesday, March 22, 1995

Purchase of offices by Government Property Agency ♦ ♦ ♦ ♦ ♦

In reply to media enquiries on press reports that Information Services Department would move out of Beaconsfield House, a spokesman for the Government Property Agency said:

"To protect the Government’s commercial position, the Government Property Agency is unable to comment on recent press reports about the purchase of office accommodation by the Government Property Agency.

5

"We are considering a number of purchasing and leasing options to meet identified accommodation shortfalls.

"Our present top priority is to provide accommodation for the Legal Department and Judiciary which currently have serious shortfalls of space."

End/Wednesday, March 22, 1995

Residential mortgage survey results for February 1995

*****

The growth in residential mortgage loans for the purchase of properties in Hong Kong remained modest in February, according to the latest monthly survey conducted by the Hong Kong Monetary Authority (HKMA).

The latest figures show that the total amount of outstanding mortgage lending by the 33 institutions in the survey grew by 0.2% or $0.5 billion in February (0.4% in January) to $238.6 billion. The growth rate is below the monthly average of 0.88% over the last 12 months.

The annualised rate of growth in lending over the last three months was 5.0%, compared with 7.6% in the three-month period to January.

The 12-month average of outstanding loans dropped to an annualised growth rate of 10.6% from 11.5% in January.

"These figures reflect the sluggish market activity in the early part of the year," said Mr David Carse, the Deputy Chief Executive (Banking) of HKMA. "More recently however the market seems to have revived somewhat, which may show up in the figures for later months."

The amount of new loans approved but not yet drawn decreased by 5.0% or $0.1 billion to $2.56 billion in February.

Lending for the purchase of properties in China slightly fell by 0.3% to $4.60 billion in February, compared with the 2.6% growth in January.

Gross loans made in February decreased both in number (to 83 from 368) and in amount (to $50 million from $168 million).

New loans approved in February also dropped both in number (to 181 from 242) and in amount (to $112 million from $186 million).

6

Residential Mortgage Loans in Hong Kong

Results of Survey for February 1995 Feb Jan

1995 1995

HK$ Mn HK$ Mn 33 authorised institutions

1. Outstanding lending

a. Amount

b. Monthly change

c. Twelve-month change

d. Average change (annualized)

Latest three months

Latest twelve months

238,589 0.2%

10.7%

5.0%

10.6%

238,087 0.4%

11.6%

7.6%

11.5%

2. Gross loans made during month

a. Amount b. Number 3,843 2452 4,846 3337

3 New loans approved during month

a. Amount b. Number 3,793 2599 4,559 3010

4. New loans approved during month but not yet drawn

a. Amount b. Number 2,560 1832 2,694 1798

7

Chart A

RESIDENTIAL MORTGAGE LOANSJN HONG KONG (33 institutions)

Outstanding balance at end of month

Remarks : The significant fall of outstanding balance in December 1994 was due to the effect of reclassification. securitization and sale of loans by some institutions.

Monthly growth rate

A2

3-month and 12-month moving average growth rate on annualised basis

□ 3—month ♦ 12—month

8

Chart B

RESIDENTIAL MORTGAGE LOANS IN HONG KONG (33 institutions)

GROSS LOANS MADE DURING THE MONTH

Amount

Thousand Billion

Number of accounts

9

Chart C

RESIDENTIAL MORTGAGE LOANS IN HONG KONG (33 institutions)

NEW LOANS APPROVED BUT NOT YET DRAWN

Number of accounts

End/Wednesday, March 22, 1995

10

Plugs and adaptors regulation in force tomorrow

*****.

The regulation governing the safety of plugs and adaptors will become effective tomorrow (Thursday) and the sale of all such products not meeting the safety standards prescribed in the regulation will be illegal.

Any person who sells or hires out, or exhibits or keeps for the purpose of sale or hiring out plugs, adaptors or electrical products not meeting the prescribed safety requirements is liable to a maximum fine of $50,000 on first conviction, and $100,000 on second or subsequent conviction, in addition to six months’ imprisonment.

Announcing this at a press conference this (Wednesday) morning, Chief Engineer (Electricity Legislation) of the Electrical and Mechanical Services Department (EMSD), Mr Uy Tat-ping, said the objective of the Plugs and Adaptors (Safety) Regulation was to enhance public safety in the use of plugs and adaptors and electrical products.

Mr Uy pointed out that all plugs and adaptors designed for household use must comply with the safety standards prescribed in the regulation.

"They are the 5AMP/15AMP threc-round-pin and the 13AMP three-rectangular-pin plugs and adaptors," he said.

The regulation also requires every electrical product designed for household use be fitted with a correct plug allowed under the regulation.

"Two-pin plugs may only be used for shavers or other electrical products designed to receive power from shaver sockets in a bathroom," Mr Uy stressed.

Mr Uy noted that the regulation did not apply to plugs, adaptors and electrical products that were currently in use.

However, he urged members of the public not to purchase or use electrical products that do not comply with the regulation in order to ensure their own safety.

"Furthermore, should EMSD identify any product that poses unacceptable risk to the user, the Director of Electrical and Mechanical Services (DEMS) has the power to prohibit the use of this product," he said.

As regards enforcement of the regulation. Mr Uy said EMSD would carry out random spot checks at supply outlets, including department stores, supermarkets, wholesalers and retailers, to seek substandard products. EMSD would also deal with complaints and accidents related to electrical products.

11

Meanwhile, the DEMS would encourage the public to replace their substandard products with suitable products, Mr Uy added.

Problems commonly associated with plugs include insufficient marking, and live and neutral pins too close to the periphery.

The common problems of adaptors are no safety shutters; socket rating exceeding the plug pin rating; one socket designed to accommodate more than one type of plug which lead to loose contact; and too many socket outlets.

End/Wednesday, March 22, 1995

Waste charging scheme to be modified ♦ ♦ ♦ ♦ ♦

The Government intends to modify the charging scheme for waste delivered to landfills by private waste collectors after further consultation with interested parties.

To make charges more closely related to the nature of waste disposed, the two-tier charging scheme for small and large vehicles will be replaced by a system of charging on a per tonne basis. This new arrangement will conform more closely with the polluter pays principle.

Initially, the charge will be set at $43 per tonne of waste (1995 prices) to recover 50 per cent of the full cost.

Payment will be made in the form of pre-paid tickets of one-tonne and five-tonne face value, available at 32 sales offices, including one at each operational landfill.

It is also proposed that an electronic payment system be introduced next year to simplify charge collection procedures and to shorten processing time at landfills.

To address concerns about the possible impact on domestic premises currently served by private waste collectors, private waste collectors will not be charged for disposing of household waste at landfills.

The Environmental Protection Department will register private waste collectors who deliver household waste to landfills and provide them with tickets based on the quantity of household waste they collect and dispose of at landfills.

12

A Government spokesman said the initial charge would be moderate enough to enable waste producers to factor the additional cost into their operating accounts. Charges will increase gradually to achieve full cost recovery.

"In parallel with the charging proposals, enforcement action has been stepped up and the Waste Disposal Ordinance amended to provide a much heavier penalty against unauthorised dumping of waste."

The spokesman said the Government hoped to implement the charging scheme as soon as possible to encourage waste minimisation and to help relieve pressure on landfill capacity.

Subject to the approval by the Govemor-in-Council, a regulation specifying the rates of charges will be tabled in the Legislative Council before mid-1995. Charging is expected to start in September 1995.

End/Wednesday. March 22, 1995

Licensing of telecommunication services in HK

*****

The Telecommunication Authority (TA), Mr Alexander Arena, has issued a statement to clarify the licensing requirements for telecommunication services offered over the public telecommunications networks in Hong Kong, in particular, Internet access and bulletin board services.

The main points of the statement are as follows:

* I'he test for licensing a service connected to public network is whether a provision of a service to the public is involved.

* No telecommunication licence is required for a service which only sells information.

Generally, Internet access service providers in Hong Kong offer a wide range of information and messaging services. Clearly, the Internet service providers are providing a service to the public and are subject to licensing.

13

* A bulletin board service (BBS) which only provides an information service does not require a licence. However, if the scope of the service is expanded to include messaging or electronic mail capability and the service is offered generally to the public, a licence is required.

The appropriate licence for the provision of telecommunication services to the public over the public telecommunications networks is the Public Non-exclusive Telecommunications Service (PNETS) licence.

The PNETS licences contain conditions which allow the TA to ensure that licensees conform to the appropriate standards of behaviour and a breach of licence conditions can result in pecuniary penalties and withdrawal of licence.

For enquiries, please contact Controller of Telecommunications (Competitive Services) on tel 2961 6654 and fax: 2803 5112

The detailed statement by TA is available on application to the Office of the Telecommunications Authority and is accessible on OFTA’s electronic bulletin board on tel 2834 0119.

End/Wednesday, March 22, 1995

Two New Territories lots to let * ♦ ♦ ♦ ♦

The Lands Department is inviting tenders for the short-term tenancies of two pieces of Government land in the New Territories.

Covering an area of 3,016 square metres, the first lot at San Shing Avenue, Shek Wu Hui, Sheung Shui, serves as a fee-paying public car park for vehicles not exceeding 5.5 tonnes. The tenancy is for one year, renewable quarterly.

The second lot at Shek Pai Tau Road, Tuen Mun, has an area of 2,480 square metres for landscape or commercial gardening use. It can also be used as a plant nursery.

The tenancy is for three years, renewable quarterly.

The closing date for submission of tenders for both lots is noon on April 7.

14

Tender forms, tender notice and conditions may be obtained from the District Lands Office, North, District Lands Office, Tuen 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 the offices.

End/Wednesday, March 22, 1995

Slogan Design Competition to promote teacher image ♦ ♦ ♦ ♦ ♦

The Education Department is now inviting primary and secondary students to participate in the Slogan Design Competition on Appreciation of Teachers.

The competition is aimed at promoting the image of teachers and enhancing the understanding of the public, in particular, students, on the professionalism of teachers.

A spokesman for the Education Department said: "As stated in the 1994 Policy Address, the Government has been committed to raising the status of teachers. The slogan design competition is one of the activities to promote the image of teachers and to attract more young people of high calibre to join the profession."

Students taking part in the competition are required to write one or more slogans to express gratitude to their most respectable teachers or to show their harmonious relationship with them, the spokesman said.

The winning slogan will be printed on bookmarks for distribution to all primary and secondary students.

The competition is divided into primary and secondary school groups. Winners will receive a cash prize ranging from $200 to $1,000 and a certificate.

The spokesman said all entries should show originality and illustrate the main theme on the most respectable teacher or student-teacher relationship.

He also reminded all participating schools to send the completed entry form and all entries to Sing Tao Daily Post, 3/F, Tower B, Sing Tao Building, 1 Wang Kwong Road, Kowloon Bay, on or before April 28, 1995.

The slogan competition is jointly organised by the Education Department, Sing Tao Daily and Sing Tao Evening Post.

End/Wednesday. March 22. 1995

15

HK's largest water pumping station begins operation

*****

The largest water pumping station in Hong Kong was officially opened today (Wednesday) to mark the United Nations World Water Day.

Speaking at the opening ceremony for the Tai Po Tau "D" Pumping Station, Stage One, the Director of Water Supplies, Mr Hu Man-shiu, said it had cost $315 million and had an initial capacity of 1.15 million cubic metres per day.

’’When the pumping plants are fully installed in the later stages, the pumping station will have an ultimate capacity of 3.07 million cubic metres per day and will continue to be the focal point of Hong Kong's raw water transfer system.

”We currently receive about 70 per cent of our water from China. The rest is derived from local catchment and reservoirs. To meet the increasing demand, the Government has reached an agreement to receive more water from China.

"The annual quantity of water received from China will rise progressively from the present 690 million cubic metres to 1,100 million cubic metres in around 2008.

"An extensive programme of new works has been implemented to distribute this water. The new pumping station is one of the major elements of these new works," Mr Hu added.

Speaking at the same occasion, the Chairman of the Legislative Council's Public Works Sub-committee, Dr Samuel Wong Ping-wai, said "the Water Supplies Department has undertaken many far-sighted projects of world class status to keep pace with the ever-growing demand for water.

"The Tai Po Tai 'D' Pumping Station where we are present today is one of the components of the third scheme for the reception and transfer of the much increased East River water supply to meet Hong Kong's demand beyond 1994," Dr Wong said.

Dr Wong also noted that the Department will spend in 1995/96 nearly $2.2 billion in expanding and improving the water supply system, including building new treatment works, supply to new towns, the new airport and new ports development and to meet the demand generated from the fast track housing development programme.

"All these works are an essential part of all the infrastructures that we have embarked on to maintain Hong Kong's status as a most prosperous city in Asia," Dr Wong added.

16

The occasion was also marked by the announcement of winners and presentation of prizes for the World Water Day Essay Competition organised by the Secretariat of the International Water Supply Association - Asia Pacific Group (IWSA-ASPAC) in collaboration with the Education Department and the Water Supplies Department.

Mr Hu, the current Chairman of IWSA-ASPAC, said the essay competition, with the theme "Water is Life", was launched to promote the awareness of Hong Kong students on the protection and conservation of the territory’s scarce water resource.

• ■ •/*

Denise Woo Kar-yan of the Diocesan Girls’ School and Yum Chun-wa of Queen Elizabeth School won the English and Chinese categories of the competition respectively. Prizes for the winners included round trip air tickets to London, Taipei and Manila.

March 22 of each year has been declared by the United Nations as the World Water Day. The declaration is in consideration of the importance of water resource development to economic productivity and social well-being; the growing scarcity of water resources; and the requirement of public awareness at local, regional and international levels for the promotion of water conservation.

End/Wednesday, March 22, 1995

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,366 0930 +1,247

Closing balance in the account 1,908 1000 +1,247

Change attributable to: 1100 +1,264

Money market activity +1,244 1200 +1,244

LAF today -702 1500 +1,244

1600 +1,244

LAF rate 4.25% bid/6.25% offer TWI 118.1 *-0.1* 22.3.95


17

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.04 14 months 2605 6.35 100.13 6.32

1 month 5.14 23 months 2702 7.50 101.47 6.78

3 months 5.54 28 months 3707 6.95 100.29 6.92

6 months 5.80 34 months 3801 8.00 102.39 7.18

12 months 6.22 60 months 5003 7.75 100.67 7.73

Total turnover of bills and bonds - $20,300 million

Closed March 22, 1995

End/Wednesday, March 22, 1995

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, March 22,1995

Contents Page No,

Legislative Council meeting:

Minimum sentences for serious crimes undesirable......................... 1

Measures to fight election graft......................................... 1

Right of abode.......................................................     3

Effect of Kaohsiung off-shore transhipment centre on HK.................. 4

Vietnamese migrants and refugees in HK................................... 5

Privately-run carparks................................................... 9

Derivative transactions of banks........................................ 10

Judges too lenient...................................................... 11

Public displays of new airport project............................... 12

Relocation of ferry piers............................................... 14

/Drug abuse....

Contents

Page No.

Drug abuse of young people in Yuen Long............................... 16

Water seepage problems................................................ 17

Ban on election advertisement.......................................   19

Unlicensed cinemas.................................................... 20

Home help services to AIDS patients................................... 22

Hospital Authority remuneration package............................... 23

Environmental implications of projected increase in port throughput. 25

Various departments at work to tackle juvenile crimes................. 28

Appointment of barristers in private practice as deputy judges........ 29

Wage ceiling.......................................................... 31

1

Minimum sentences for serious crimes undesirable

*****

The administration is not considering introducing legislation to require the courts to impose specific sentences fixed by law for serious crimes, the Attorney General, the Hon Jeremy Mathews, said today (Wednesday).

In a written reply to a question raised by Dr the Hon David Li Kwok-po in the Legislative Council today, Mr Mathews said there was a specific sentence for murder which was a mandatory sentence of imprisonment for life since the enactment of the Crimes (Amendment) Ordinance 1993.

He noted that other serious crimes did not carry mandatory sentences, but were subject to a maximum sentence.

’’The circumstances in which a particular type of offence may be committed are infinitely varied and there may be strong mitigating circumstances in respect of even serious offences.

”A fixed or minimum sentence for serious crimes will not allow the judge to take into account all the relevant circumstances when imposing an appropriate sentence,” Mr Mathews said.

He added that one possible effect of having offences which carried a fixed or minimum sentence might be an undesirable reluctance on the part of judges and juries to convict.

End/Wednesday, March 22, 1995

Measures to fight election graft ♦ ♦ ♦ ♦ ♦

Following is a question by Dr the Hon David Li Kwok-po and a written reply by the Secretary for Constitutional Affairs, Mr Nicholas Ng, in the Legislative Council today (Wednesday):

Question:

According to the ICAC, 289 complaints on election graft were reported in 1994. In view of the upcoming Legislative Council election this year, will the Government inform this Council what further steps will be taken to ensure that proper procedures will be followed during the election?

2

Answer:

It is important that elections conducted in Hong Kong should not be tainted by graft and other irregularities. The Corrupt and Illegal Practices Ordinance sets out the legal framework against such practices.

Everything possible will be done by the Administration and the Boundary and Election Commission (BEC) to ensure that the Legislative Council elections in September will be as honest and clean as possible.

To this end, the ICAC would ensure that candidates and their agents are fully aware of the relevant requirements and procedures to conduct a clean campaign. Their officers would visit all candidates to explain the do's and don'ts under the Corrupt & Illegal Practices Ordinance. An information package would be given to each candidate to provide an introduction to the law, illustrative cases and answers to common problems. Publicity literature for candidates' agents and campaign helpers would also be produced. ICAC officers would also take part in briefings for candidates organised by the BEC.

As for the general electorate, the ICAC would publicise, during the election period, the "Support Clean Elections" message through the mass media, posters and press advertisements. Advisory leaflets would be mailed to all registered electors. A hot-line would be set up to enable the public to make enquiries and to report any suspected irregularities. A dedicated team of 30 ICAC officers would investigate complaints from candidates and members of the public.

In addition to the efforts of the ICAC, the BEC would further refine, with experience gained from the March Municipal Councils elections, its comprehensive set of guidelines on election-related activities for the coming Legislative Council elections. The complaint procedures instituted by the Commission would encourage mutual policing and help ensure that the electoral legislation and guidelines are compiled with, and that the Legislative Council elections would be open, clean and honest.

End/Wednesday, March 22, 1995

3

Right of abode ♦ * * * *

Following is a question by Dr the Hon Leong Che-hung 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:

In its response to the Legislative Council's motion debate on full British citizenship for all British Dependent Territories Citizens (BDTC)/British National (Overseas)(BNO) passport holders in Hong Kong, the British Government stated that the Joint Declaration enabled all Hong Kong BDTCs to retain the right of abode in Hong Kong. In this connection, will the Administration seek elucidation to ascertain :

(a) whether BDTC passport holders who also possess Canadian or Australian passports can retain the right of abode in the territory after 1997, taking into consideration that Britain, Canada and Australia allow dual nationality but China does not; and

(b) if the answer to (a) is in the negative, whether there are or will be two categories of BDTC/BNO passport holders, one with the right of abode in Hong Kong, and the other without?

Reply :

Mr President,

Section XIV of Annex I to the Joint Declaration and article 24 of the Basic Law provide that persons not of Chinese nationality shall subject to certain conditions be granted the right of abode. The answers to the Honourable Dr C H Leong's sequential questions therefore depend crucially on the precise way in which these provisions are to be implemented. We are seeking clarification from the Chinese side, in the context of our wider discussion in the Joint Liaison Group on the "right of abode" issue.

End/Wednesday, March 22, 1995

4

Effect of Kaohsiung off-shore transhipment centre on HK *****

Following is a question by the Hon Henry Tang Ying-yen and a written reply by the acting Secretary for Economic Services, Mrs Elizabeth Bosher, in the Legislative Council today (Wednesday):

Question:

It is learnt that Taiwan plans to set up an off-shore transhipment centre at Kaohsiung before 1997. In this regard, will the Government inform this Council whether it will evaluate the effect of such a plan on the air services, shipping trade and tourism of the territory; if so, how the evaluation will be conducted?

Answer:

Mr President,

The Kaohsiung centre is apparently designed to cater for shipping, rather than air, links with the mainland; hence the impact on air services should be minimal. We see little potential impact on Hong Kong’s tourism industry.

In regard to shipping, the Port Development Board Secretariat has carried out a preliminary evaluation of the possible effect on Hong Kong. The result of this evaluation is that we expect the centre to have a relatively small impact on overall port throughput. Specifically we estimate a 1.1% reduction in the growth of port traffic in the period 1994-96, and 0.7% in the period 1996-2001. On the other hand, there is also potential for an overall expansion in trade between Taiwan and the mainland as a result of the centre’s establishment; some of this trade for reasons of price, service quality or convenience is likely to flow through Hong Kong and would tend to offset any reduction in port traffic.

Our estimates of the effect of the transhipment centre on Hong Kong will be kept under review as more information on its development becomes available.

End/Wednesday, March 22, 1995

5

Vietnamese migrants and refugees in HK ♦ ♦ ♦ ♦ * ♦ > . .

Following is a question by the Hon Micheael Ho Mun-ka and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question :

Regarding Vietnamese migrants and refugees stranded in Hong Kong, will the government inform this Council of:

(a) the respective numbers of Vietnamese migrants and refugees now staying in the various centres managed by the Correctional Services Department;

(b) the respective numbers of Correctional Services Department personnel presently working in those centres as well as the staffing establishment by rank; and

(c) the personal emoluments and other operating costs in each of those centres in the 1994-95 financial year together with a detailed itemised breakdown?

Reply:

Mr President,

(a) The Correctional Services Department does not manage any centres for refugees. The total number of Vietnamese migrants in Vietnamese detention centres managed by the Correctional Services Department is about 15,300.

(b) The staffing establishment and the corresponding strength by rank in the Vietnamese Division of the Correctional Services Department is at Annex.

(c) The personal emoluments and other operating costs in each of the Vietnamese migrant detention centres in the 1994-95 financial year are as follows :

6

Personal Emoluments ($ Million) Other Operating Costs* ($ Million) Total ($ Million)

Whitehead Detention Centre 182.78 17.68 200.46

High Island Detention Centre 55.55 7.99 63.54

Chimawan Detention Centre 25.21 2.38 27.59

Green Island Reception Centre 11.76 0.55 12.31

Total 275.30 28.60 303.90

♦ Other operating costs include temporary staff, transport and travelling, maintenance charges, stores and general administration expenses.

7

Establishment a Strength of VM Centres Annex

(•SM0C0X96)

RANK VIETNAMESE DIVISION

HQ IGOCfU) * icocn.) IGJRC IMIOC |WHCC TOTAL

Custodial Surf

Assistant Commissioner 1 <«) 1 0

Chief Sun^rintendent a 1

Senior Suoerintendent 1 • 1 1 2 2

Superintendent 1 4 2 5 2

Chief Officer A 9 ! • 13 3 13 •J ,3

Principal Officer t 9 1 1 t $ • 51 47

Officer 1 5 4 5 to 45 52

Assistant Officer I 4 « 14 »> •1 M 2,7 231 35. 300

Assistant Officer II 1. 1 M 443 lOf 1 •w 152 296

Sub- tout 3 * («) 0 5 U £3 25 27 212 ISC ::c 43C 530 • 1 (» 7-3

VM Staff

Officer (VM) 4 2 U 23 * 29

Assistant Officer II (VM) 22 25 14 i 283 s s

SuO'totai 0 0 0 0 22 29 0 IS 0 0 300 244 322 239

Total 1 • 3 1 I : 7‘ r U :,s 190 •34 «T4 952 • t (S| • fl A*

/to be continued

Legend :

Establishment + Supernumerary Posts

* Chimawan Detention Centre (Upper) ceased to be a Vietnamese migrant detention centre with effect from 1.12.1994

BQ - Headquarters

CDC(L) - Chimawan Detention Centre (Lower)

GIRC - Green Island Reception Centre

HIDC - High Island Detention Centre

WHDC - Whitehead Detention Centre

8

- Cant’d -

RANK VIETNAMESE DIVISION

HQ |CDC(U)*|CK:(L) |girc | HIDC |WHDC TOTAL

Other Deoertmental Grades Staff

Technical . . Instructor (CS) (r_AtA_ring_)— c 5 s

Instructor (CS) (Caterina) 2 2 1 12 11 14 14

Instructor’ (CS) 0 0

Workman II 2 1 4 4 15 8 21 13

Total 8 0 0 0 2 2 2 1 * 5 27 24 41 87

General Grades Staff

^Iministrative Officer _ 1 1 0

Administrative Officer 1 0 1

Senior Clerical Officer 1 1 1 1

Clerical Officer I 1 1 1 3 3 5 4

Clerical Officer II 1 1 1 1 3 5 18 13 21 20

Clerical -Assistant 1 1 3 3 4 4

Office Assistant 1 1 4 4 5 $

Personal Secretary II 1 1 1 1

Typist 1 1 3 3 4 4

Supplies Suoervisor I 1 1 1 1 K>

Supplies Supervisor II 1 1 1 1 3 3 $ 5

Supplies .Assistant 1 4 2 2 1 4 3

Total 4 5 0 0 0 0 2 2 10 11 3? 32 53 102

GRANO TOTAL 12 • 1 W 0 224 roc j 1046 • 1 (•>

8 S 89 46 206 730 1 1084

End/Wednesday, March 22, 1995

Q

Privately-run carparks

*****

Following is a question by the Hon Steven Poon Kwok-lim and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

It is learnt that operators of certain privately-run carparks in the territory have used some of the parking spaces as the venues for car shows or selling second-hand cars, thus substantially reducing the number of parking spaces available for public use. In this connection, will the Government inform this Council:

(a) whether there is any requirement stipulated by the Government that all parking spaces in a carpark are to be exclusively used for parking when granting approval of the building plan of the carpark; and

(b) whether the conversion of part of a privately-run carpark to other commercial usage (such as car shows or selling second-hand cars) is in breach of any regulations; if so, what measures will be taken by the Government to ensure that the relevant regulations are complied with by the carpark operators?

Answer:

Mr President,

(a) Carparks operated on private lots are subject to the lease conditions governing the particular lot and these can vary considerably from one case to another.

(b) The use of carparking spaces on private lots for other commercial uses, such as car sales or shows, does not necessarily breach the lease conditions therefore. Lease enforcement action can be taken against breaches of lease conditions if these do occur however.

End/Wednesday. March 22, 1995

10

Derivative transactions of banks *****

Following is a question by Dr the Hon Huang Chen-ya and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

Following the progressive abolition of the Interest Rate Agreement, some banks have, one after another, offered various kinds of derivatives in order to secure more retail customers. In this connection, will the Government inform this Council:

(a) whether government approval has to be sought before the banks offer such derivatives to their clients; if so, which department is responsible and what the procedures are for granting the approval;

(b) whether the advertisements put out by the banks for such derivatives are subject to the regulation of the Securities and Futures Commission or the Monetary Authority; if so, what the regulating procedures are; and

(c) what legislation is in place to safeguard the customers' investment in these derivatives?

Reply:

We do not see a direct link between the deregulation of the interest rate cap on time deposits governed by the Interest Rate Rules and the introduction of derivative products by banks. Such products are more likely the result of product innovation by banks aided by the development, and more common use, of derivatives.

Regarding (a), the Monetary Authority, as the regulator of banks, expects that all the activities of banks should be conducted in a responsible, honest and businesslike manner. Banks are therefore required to be financially sound, to be prudently managed by fit and proper persons and to have adequate systems of internal control for the various aspects of their business, including derivatives related business. Within this overall framework, it is not generally the practice of the Monetary Authority to require banks to obtain its prior approval for each and every new business product. However, where certain products raise risk-related issues (such as deposit-linked derivatives), banks are expected to consult with the Monetary Authority in advance. In such cases, the primary focus is to ensure that banks fully understand the nature of the risks involved and have systems and controls to manage those risks.

I)

As regards (b), advertisements by banks on their products do not need to be pre-approved. Nevertheless, the Monetary Authority recognise- the credit, legal and reputational risks to the banks should they engage in derivatives transactions with customers who do not fullv understand the risks involved. In -ssuing a guideline on risk management of derivatives in December 1994. the Monetary Authority therefore reminded banks that for their own protection, they should have policies and procedures reasonably to ensure that their customers have the capability to understand the nature and risks of derivatives transactions into which they enter. They should also provide the customers with sufficient information to help them understand the risks. The Monetary Authority has followed this up in particular cases by means of on-site examinations.

On (c), provisions in the Banking Ordinance ensure that banks manage their risks properly so as to safeguard the stability of the banking system and protect the interests of depositors. However, banking supervision is not generally designed to protect bank customers m respect of specific products Furthermore, guidance of the kind described in the previous paragraph will help to achieve the objective of protecting not only the banks but also their customers against imprudent marketing of derivative products. In general, to safeguard their own interest investors would have to be aware of the risks associated with any of their investment activities and to seek professional advice if necessary.

End/Wednesday, March 22. 1995

Judges too lenient * ♦ ♦ ♦ ♦

Following is a question by the Hon David Li Kwok-po and a written reply by the Attorney General. Mr Jeremy Mathews, in the Legislative Council today (Wednesday):

Question:

According to a recent survey commissioned by a local English newspaper, more than half of the people of Hong Kong think the territory's judges are too lenient with criminals. Will the Government inform this Council whether it is considering or will consider introducing legislation to require the courts to impose specific sentences fixed by law for serious crimes such as murder, manslaughter and rape?

12

Answer:

Mr President,

There is a specific sentence for murder. Since the enactment of the Crimes (Amendment) Ordinance 1993, any person convicted of murder receives a mandatory sentence of imprisonment for life.

Other serious crimes do not carry mandatory sentences, but are subject to a maximum sentence. The circumstances in which a particular type of offence may be committed are infinitely varied. There may be strong mitigating circumstances in respect of even serious offences. A fixed or minimum sentence would not allow the judge to take into account all the relevant circumstances when imposing an appropriate sentence.

In addition, one possible effect of having offences which carry a fixed or minimum sentence might be an undesirable reluctance on the part of judges and juries to convict.

The Administration is not considering introducing legislation of the type referred to in the question.

End/Wcdnesday, March 22, 1995

Public displays of new airport project

*****

Following is a question by the Hon Jimmy McGregor and a written reply by the Secretary for Works, Mr James Blake, in the Legislative Council today (Wednesday):

Question:

It is learnt that the Provisional Airport Authority has arranged public displays on the progress of the Chek Lap Kok airport project and its associated transport systems in order to provide Hong Kong people with information on the airport project. Will the Government inform this Council whether It will arrange for a number of public displays of descriptive and pictorial illustrations of such progress, with an Indication of the percentage completion of each of the principal core projects, nt appropriate venues much frequented by the public; and if so. whether such displays will be up-diilcd each month until the completion of the airport project?

13

Answer:

Mr President,

The New Airport Projects Co-ordination Office (NAPCO) has organised 10 exhibitions between August 1994 and March 1995 in different districts throughout Hong Kong. The aim of these district exhibitions is to keep the public informed of the 10 projects in the Airport Core Programme (ACP), including the new airport at Chek Lap Kok and its associated transport systems, and the steady progress that has been made on the works. The exhibitions feature descriptive texts on the ACP projects and their progress, photographic displays of the project sites, models and video films. An indication of the percentage completion of each of the 10 projects is included in the text and these figures are updated from time to time.

The exhibitions have been held about monthly in prominent and convenient venues which attract high pedestrian flow. These include Lok Fu Centre, Pacific Place, Tsuen Wan Plaza, City Plaza, Tuen Mun Plaza, Times Square, Shatin New Town Plaza, Telford Garden, Landmark and Ocean Terminal. The 10 exhibitions held so far have attracted a total estimate of 163,000 visitors. The final exhibition of this series will be held at the Shun Tak Centre from 24 to 26 March 1995.

There is no immediate plan to repeat this series of district exhibitions for the time being. Instead, we are planning to establish an ACP viewing and exhibition centre for the public this year. Other formats of local exhibitions are also being considered.

Apart from exhibitions, NAPCO uses a number of other channels to disseminate information on the ACP to the public. These include the bi-monthly publication of a newsletter and progress fact sheet to keep the public abreast of key developments and progress on the ACP. A total of 45,000 copies are published and distributed to about 2,500 individuals and companies both locally and overseas by direct mailing and to the public through district offices and the Municipal Councils etc. In addition, NAPCO regularly issues press releases and photographs to highlight achievements of major milestones on the ACP and these are widely covered in the press.

14

Briefings and site visits on the ACP are also organised for different members of the local and overseas communities, including community leaders, academics, professional and business groups. For school students in particular, we have also produced teaching kits on the ACP and organised briefings and exhibitions to cater for their interests specifically.

As the ACP projects are building towards peak production, we are aware of the growing importance to keep the people of Hong Kong updated on the ACP progress. We will continue to use the above channels to disseminate the relevant information to the public.

End/Wednesday, March 22, 1995

Relocation of ferry piers *****

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

Some of the existing ferry terminals in the Central District will be relocated to new ferry terminals in the reclamation area as a result of the Phase 1 Central and Wan Chai Reclamation works. In this connection, will the Government inform this Council:

(a) of the ferry routes to be affected;

(b) of the distance between the new terminals and the existing terminals to be relocated; and

(c) what measures will be taken to minimise inconvenience to passengers, such as the provision of feeder buses and the construction of a covered pedestrian walkway?

15

Reply :

Mr President,

The relocation of ferry piers under Phase 1 of the Central and Wan Chai Reclamation project is scheduled to take place in stages between March 1995 and early 1997. Upon completion of the project in 1997, public ferry services will be accommodated in five new permanent piers on Central Reclamation - four for the ferry services of Hong Kong & Yaumati Ferry (HYF) and one for the licensed ferry service between Central and Discovery Bay.

HYF’s Central to Jordan Road passenger service has been relocated to a temporary pier on the eastern edge of the reclamation with effect from 17 March 1995. Ferry routes serving Tucn Mun, Tsucn Wan and Tsing Yi and the outlying islands will be relocated to new permanent piers on the northern edge of the reclamation in May 1995.

The walking distance between the existing piers and the new piers on the reclamation is estimated to be about 900 metres. However, the actual walking distance for ferry passengers will vary depending on their origin and destination. Also, passengers arriving by land transport such as buses and taxis should not be adversely affected because there are interchange facilities adjacent to the new piers. These facilities include a bus terminus and waiting areas for taxis and private cars. One bus route has already been relocated to the new bus terminus and another six bus routes will be relocated by May 1995. A well lit covered walkway leading to the ferry piers and adequate directional signs have been provided and more facilities are being constructed to provide easy and convenient access for ferry passengers. Publicity will be arranged through notices at piers, pamphlets and press releases to advise passengers of the changes.

End/Wedncsday, March 21, 1995

16

Drug abuse of young people in Yuen Long *****

Following is a question by the 1 Ion Zachary Wong Wai-yin and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question :

The problem of drug abuse by young people has become increasingly serious in Yuen Long. It is learnt that the Government is planning to set up a drug addiction treatment centre in Yuen Long to provide services to first-time young drug abusers. In this connection, will the Government inform this Council :

(a) of the estimated number of young people abusing drugs in Yuen Long: of this number, how many are students and what is the age of the youngest drug abuser;

(b) of the objectives of the proposed drug addiction treatment centre and the details of its specific plan; and

(c) what are the factors that will be taken into consideration in determining the location of the treatment centre; and whether the public will be consulted before any decision is taken; if so. how the public consultation will be carried out; if not, why not?

Answer:

Mr President.

' (a) The number of young drug abusers (below the age of 21) in Yuen Long district reported to the Central Registry of Drug Abuse was 316 in 1994. Statistics on the number of students among these young drug abusers are not available. The age of the youngest drug offender reported in Yuen Long is 10.

(b) The objective of the proposed drug addiction treatment centre, to be operated by the Society for the Aid and Rehabilitation of Drug Abusers (SARDA). is to develop an alternative facility wholly and exclusively for the treatment of young male drug abusers. A new facility is required because existing treatment facilities on the remote island of Shek Kwu Chau do not segregate young abusers from addicts with a long history of abuse and. accordingly, the environment there is not entirely conducive to the restoration of young abusers to a drug-free life.

17

fhe project has been endorsed by the Action Committee Against Narcotics and approved for funding by the Community Chest. The proposed centre will provide an in-patient treatment facility for young male drug abusers under the age of 25, with an initial capacity of 20 beds, to be progressively increased to 30 over a period of three years. Once admitted, a patient will undergo a programme of detoxification and counselling by a team of medical, nursing and social work staff. The residential treatment and rehabilitation programme takes eight weeks, during which time the family of a patient will be involved. On completion of the residential programme, the patient will be discharged from the centre and transferred to an aftercare programme in one of SARDA's three regional centres.

(c) Since the participation and support of the families of young drug abusers is considered important in helping to encourage them turn over a new leaf, it is essential that the proposed centre should not be located in areas too remote from the community. On the other hand, care will be taken not to set up the centre in a densely populated area. As regards the requirements of the centre, apart from adequate space to provide the necessary facilities and accommodation, some open space within the centre is needed to enable activities to be organised for the young patients during their stay there.

No firm decision has been taken on precisely where the centre should be located, although a number of sites, including the vacant premises of a disused school in Yuen Long, have been examined. The relevant District Board will be consulted in due course.

End/Wcdnesday. March 22, 1995

Water seepage problems

*****

Following is a question by the Hon Emily Lau Wai-hing and a written reply by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council today (Wednesday):

Question:

Regarding the frequent complaints by residents of public housing estates about water seepage problems in their flats, will the Government inform this Council:

18

(a) of the total number of complaints received by the Housing Authority about water seepage problems in public housing and Home Ownership Scheme (HOS) flats under its management which have been occupied for less than three years, together with a breakdown of the causes of water seepage; and how many of such complaints have resulted in repair work being carried out;

(b) of the ten public housing/HOS estates occupied for less than three years having the largest number of complaints about water seepage problems, together with the names of the respective contractors;

(c) whether the Housing Authority has put in place any regulating mechanism to ensure that water seepage problems will not occur in public housing and HOS flats as a result of the negligence of the contractors or defects in building design; if so, what such mechanism is, and why water seepage problems still occur frequently; and

(d) what measures the Housing Authority has taken to improve the quality of public housing/HOS flats in order to prevent the occurrence of water seepage problems after the flats arc occupied?

Answer:

Mr President,

Water seepage problems in newly completed public housing estates involve ceilings, windows, external walls and expansion joints. Common causes are the varying standards of workmanship on surface drainage and tenants' unauthorised modifications which damage waterproof materials and surface drainage in the toilet, kitchen and balcony areas. Given the short notice, it is not possible to include in this reply details of complaints about water seepage in all public housing rental estates which arc less than three years old. This information will be provided separately as soon as possible. As Home Ownership Scheme flat owners themselves are responsible for maintenance works, the Housing Department does not keep a record of such complaints.

Upon receipt of complaints about water seepage in public housing rental estates, estate management staff will refer them to the District Maintenance Office of the Housing Department for follow-up action. However, if the defects are found within the Defects Liability Period (i.c. within one year of flat completion), repair work will be undertaken by the main contractor.

19

The quality of housing construction is maintained through a contractor’s performance monitoring system. The detailed requirements are set out in the contract specifications and contract drawings. The contractor is bound by the Conditions of Contract to construct the flats and to deliver the end product to the Housing Department in accordance with the requirements specified.

Apart from providing site staff to inspect regularly the work of each construction project, the Housing Department also requires its own project staff, e.g. architects and engineers, to visit the site periodically to check that the flats arc completed to the required standard. Both site and project staff are guided by procedures set out in the Housing Department’s Quality Management Manuals. This mechanism enables each item of work to be checked at every stage of a public housing construction project so that in case of defects, corrective action is taken before the flats are occupied. As indicated above, the contractor is still held responsible for rectifying any defects within one year of hand over of the flats.

End/Wednesday, March 22, 1995

Ban on election advertisement *****

Following is a question by the Hon Henry fang Ying-yen and a written reply by the Secretary for Constitutional Affairs, Mr Nicholas Ng, in the Legislative Council today (Wednesday):

Question:

As candidates for the Legislative Council election arc not allowed to advertise in the electronic media to promote their candidature, will the Government inform this Council:

(a) of the reasons for banning election advertising through the electrontic media by candidates;

(b) whether the relevant provisions in the Bill of Rights Ordinance governing freedom of expression have been taken into account in this connection; and

(c) whether it will consider relaxing the control so that candidates for the new functional constituencies may choose any form of media which they consider to be effective for launching their election campaign?

20

Answer:

TV and radio are extremely influential mass media. They reach into virtually every household in Hong Kong. It is therefore important to ensure that they are not being used to give any particular groups or individuals undue influence or prominence. Given the very high cost for TV and radio advertising, allowing election candidates to place advertisements on TV and radio to promote their campaigns would give rich candidates significant advantage, and would place candidates with limited financial means at a disadvantageous position.

In the interest of open and fair elections, we believe a more equitable option is for Government to make use of some of the air-time available to it on TV and radio for candidates to introduce their platforms. We are now looking into how this might best be arranged for the Legislative Council elections in September this year, including the elections of the 9 new functional constituencies. In devising the arrangements, a central consideration will be to give candidates fair and equal access.

Although candidates for the Legislative Council elections will not be allowed to place advertisement on TV and radio, they will have access to the electronic media through air-time provided by Government. The relevant provisions of the Bill of Rights Ordinance governing the right to freedom of expression has been taken into account in this connection.

End/Wednesday, March 22, 1995

Unlicensed cinemas

*****

The following is a question by Dr the Hon Tang Siu-tong and a written reply by the Secretary for Recreation and Culture, Mr James So, in the Legislative Council today (Wednesday):

Question:

It is learnt that a number of cinemas in the territory have started operating before licences are granted by the Urban Council and the Regional Council. In connection with this, will the Government inform this Council:

21

(a) what is the total number of cinemas now operating without licence in the territory; why this situation has arisen; where should the victims go for filing compensation claims in the event of an outbreak of fire in these cinemas; and

(b) what is the normal time required for the Government to process cinema licence applications; and whether there is a need to review and improve the procedures for processing such applications?

Reply :

There are at present five unlicensed cinemas all operating within the Urban Council (UC) areas. The UC have taken prosecution action against the owners of all these cinemas. All these cinema owners have been convicted and fined, ranging from $6,000 to $10,000, plus a daily fine of several hundred dollars. This situation has arisen mainly because the cinema owners are unable to satisfy all the licensing requirements imposed by the licensing authority, which is the Urban Council in the urban area and the Regional Council in the New Territories, prior to opening their doors for business.

In the event of an accident such as a fire, victims could claim legal remedies against the person causing the fire, including the owner of the unlicensed cinemas who would be culpable for operating a place of public entertainment without a valid licence.

Under current licensing procedures, the licensing authority working in conjunction with other departments concerned, including the Buildings Department and the Fire Services Department, would normally complete the initial vetting of an application for a cinema licence and issue to the applicant the licensing requirements within one to two months. The time taken for a licence to be issued would depend very much on the time the applicant successfully complied with all the requirements. Past experience has shown that it would normally take an applicant around nine to fourteen months to fully satisfy with all the licensing requirements.

The licensing authority keeps the licensing procedures under constant review to ensure that applications are dealt with efficiently without compromising any safety or hygiene requirements. The licensing authority will continue to monitor the operation of the licensing procedures and introduce improvements as and when necessary.

End/Wednesday. March 22. 1995

22

Home help services to AIDS patients *****

Following is a question by Dr the Hon Lam Kui-shing and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

In view of the refusal of home helpers in some government-subvented organisations to attend to AIDS patients, will the Government inform this Council:

(a) what short-term measures are in place to cope with the situation;

(b) whether there is any concrete plan to enhance the home helpers' understanding of AIDS; if so, what the details are and what is the timetable for its implementation; and

(c) whether the Government has reviewed the appropriateness and adequacy of the present educational work in promoting the understanding of AIDS; if so, what the result of the review is; if not. when such a review will be conducted?

Answer:

(a) Home help services are provided by government-subvented organisations. It is known that some home helpers have expressed a reluctance to deal with AIDS patients. Efforts are, therefore, being stepped up to enhance home helpers' understanding of AIDS through briefings and seminars with a view to preparing them for providing services to needy AIDS patients.

(b) In conjunction with the Hong Kong Council of Social Service, the Social Welfare Department will implement the following measures to reinforce training and support for home help staff -

* Pamphlets on AIDS resource centres will be issued to home help staff next month so that they know where to seek advice and information on AIDS directly.

23

* seminars, 40 training workshops and 30 orientation visits will be organised in 1995/96 for all home help staff to enhance their understanding of AIDS.

* The component of AIDS education in all basic and refresher training courses for home help staff will be strengthened.

* Operational guidelines on handling AIDS patients are under preparation and will be issued to home help staff within this year.

(c) The Advisory Council on AIDS and its Committee on Education and Publicity on AIDS have all along built in evaluation as a component of the educational programmes conducted. In general, the results have indicated that the programmes are appropriate and effective for the target groups served. In order to determine the overall effectiveness and appropriateness of current publicity and educational programmes on AIDS, two research programmes are being undertaken to assess the knowledge, attitude and behaviour of the public towards AIDS and AIDS-related issues. Preliminary findings of the researches are expected to be available in mid-1996. The publicity and educational programmes on AIDS may be appropriately modified in the light of these findings.

End/Wednesday. March 22. 1995

Hospital Authority remuneration package *****

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Health and Welfare. Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

As part of their remuneration package, staff ol the Hospital Authority (HA) receive a basic salary as well as a monthly cash allowance at a rate up to 60% of their basic salary. This has resulted in high spending by the Government on medical care, but the patients have not been able to benefit from it dircctlx In this connection, will the Government inform this Council :

24

(a) whether the policy of adjusting the cash allowance in line with salary increases is consistent with the Government's prevailing policy on fringe benefits;

(b) whether, in view of the ever-increasing amount of the cash allowance, the existing discrepancy in the remuneration package between the medical staff of the HA and those of private hospitals will be widened further;

(c) whether the cash allowance, which is intended to substitute some of the fringe benefits, includes an element of housing benefits; how many employees of the HA are now receiving both the cash allowance and benefits under the home loan interests subsidy scheme separately provided by the HA; and whether the provision of such housing benefits runs counter to the Government's established policy of not allowing the receipt of "double benefits"; and

(d) whether a review will be conducted on the HA's remuneration package with a view to urging the HA to adopt another set of employment terms, which is similar to that offered to officers at comparable ranks in the Civil Services, in the recruitment of new staff?

Reply:

The remuneration package for employees of the Hospital Authority was drawn up by an independent firm of consultants. This remuneration package was designed on the basis that it would be comparable to the civil service package in terms of the overall cost to the employer. It comprises a basic salary and cash allowance, a noncontributory provident fund scheme, annual vacation, medical and dental treatment, life and disability insurance as well as a housing loan interest subsidy scheme. The level of cash allowance was determined on the basis of the partial encashment of certain civil service fringe benefits including retirement benefits, leave and housing benefits. It currently ranges from 8% to 60% of an employee's basic salary.

While the Housing Loan Interest Subsidy Scheme is an element of housing benefit within the Hospital Authority remuneration package, the cash allowance is non-accountable and not regarded as a housing benefit. Employees of the Authority who receive both an interest subsidy under the Scheme and the cash allowance do not. therefore, contravene the "no double housing benefits" rule. There are 3,627 employees currently receiving interest subsidy under the Scheme.

The Hospital Authority remuneration package is a unique package designed to encourage the staff working in former government and subvented hospitals to opt for transfer to the Authority. It was endorsed by the Executive Council and approved by the Finance Committee of the Legislative Council.

Since the majority of medical staff working in private hospitals are not salaried employees whose income is determined largely on an individual basis by virtue of their professional qualification, specialised expertise and profile of clients, it would not be appropriate to compare directly their salary package with that of Hospital Authority employees.

The Administration is conscious of the need to contain cost escalation in the provision of medical services. The comparability of employment terms between Hospital Authority staff and their counterparts in the civil service will be a subject of discussion between Government and the Authority. However, any consequential adjustment to the remuneration package offered to new employees must be made having due regard to the impact on staff morale as well as the need to recruit and retain qualified professionals.

End/Wednesday, March 22, 1995

Environmental implications of projected increase in port throughput *****

Following is a question by the Hon Christine Loh Kung-wai and a written reply by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in the Legislative Council today (Wednesday):

Question:

As stated in the Port Development Strategy Review, the Port Development Board is pursuing a level of port expansion which will increase the volume of freight cargo moved by road through the territory from 20 million tonnes in 1996 to 70 million tonnes in 2011, an increase of 250%. Will the Administration inform this Council of -

(a) the estimated air quality impact of this increase, both in terms of predicted vehicle emission levels of major pollutants and in relation to the Air Quality Objectives;

26

(b) the infrastructure support required to meet the increase in cargo volume moved by road together with the estimated capital cost of such infrastructure support; and

(c) the estimated area of land required for efficient container back-up movements and container storage?

Reply:

Mr President,

The answers to the three parts of this question are as follows:

(a) fhe acceptability of the port development proposals in environmental terms was addressed in the original Port and Airport Development Strategy (PADS) studies. Although the Port Development Strategy Review did not itself examine the detailed environmental implications of the projected increase in port throughput, this will be the subject of a separate study by the Environmental Protection and Planning Departments of the environmental implications of the projected increase in port and airport throughput. The aim will be to assess all the key issues associated with further economic development in Hong Kong and evaluate their cumulative environmental impacts. This will assist the formulation of plans to achieve a sustainable development pattern for Hong Kong. Full public consultation will be part of this process.

(b) The projected increase in freight traffic will require the provision of new transport infrastructure. A number of projects are planned for this purpose which will not only serve the port, but the whole of Hong Kong. A list of these projects is annexed.

(c) Based on the findings of the ’Study on Port Back-up Land and Open Storage Requirements’ published by the Planning Department in 1994. we estimate that a total of about 500 hectares of port back-up land will be required by 201 I.

27

Project

Major Transport Projects

Estimated CapitaLCost

a) Western Corridor Railway from the border to the container port, including a spur line to the container port (port rail line)

The port rail line will cost $8 billion.

b) Route 3 (Country Park Section)

$7 billion (to be financed entirely by a private sector consortium)

c) Ting Kau Bridge

d) Route 16 (Sha Tin to

Cheung Sha Wan)

e) Duplicate Tsing Yi South Bridge

f) Improvements to Lok Ma Chau border crossing

g) New Road from Man Kam To Crossing to NT Circular Road

$2 billion

$2.7 billion (probably to be built by a private sector consortium)

$1.034 billion

$200 million

$2.4 million

End/Wednesday, March 22, 1995

28

Various departments at work to tackle juvenile crimes *****

Following is a question by Rev the Hon Fung Chi-wood and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Regarding the problem of juvenile delinquency in the Tai Po District, will the Government inform this Council whether:

(a) there is an upward trend in the number of crimes committed by juveniles in the Tai Po District recently; if so, what are the factors leading to such a situation;

(b) the relevant government departments have any specific short term plans to improve the situation; and

(c) consideration will be given to strengthening the Police manpower in the District as well as deploying another outreaching social work team to serve the District in addition to the one provided in June 1993?

Reply:

Mr President,

(a) There has been an upward trend in the number of young persons (under 21 years of age) arrested for crime in Tai Po. The figures are as follows -in 1991, 873 were arrested; in 1992, the number was 1,006; in 1993, it was 1,179; and in 1994 it was 1,583. The increase is mainly attributable to the increase in the arrests of young persons for shoptheft and dangerous drugs offences.

(b) The problem of young offenders is a matter of considerable concern to the Government and a number of departments are involved in tackling it. Specifically, in Tai Po, the Police Force has stepped up covert operations against drug traffickers. The Force is currently conducting special weekly operations to check on amusement game centres, which are frequented by young persons. The Force also plans to promote the Junior Police Call, in order to foster a police-youth partnership in the fight against crime; in addition, its community relations officers will increase visits to schools. The Force will also intensify both uniform and plan clothes patrols in school areas and areas frequented by young persons.

29

The Social Welfare Department, together with subvented Children and Youth Services in the district, will in the coming few months set up 40 guidance groups to provide support to youth-at- risk; organise three antidrug campaigns to educate young persons against drugs; and formulate eight volunteer training programmes to help prevent drug abuse and enhance positive peer influence among young people.

From the prevention angle, the Education Department will continue to encourage dialogue among teachers and school social workers, promote home-school co-operation, produce leaflets on good parenting, organise annual seminars for schools on unruly and delinquent behaviour, promote a "whole school approach to guidance" in order to cultivate a positive and caring environment in schools, help schools promote moral education, and run training programmes for teachers on moral education.

(c) The Police manpower in the Tai Po district is considered adequate; there will be an additional 17 disciplined posts created for the Task Force and Patrol Sub-unit of Tai Po Division in 1995/96.

The Social Welfare Department, in conjunction with the Hong Kong Council of Social Service, has just completed a review of its outreaching social work. The review has recommended further expansion of the service from 1996/97 onwards and identified Tai Po district as one of the 13 priority areas for the provision of more outreaching teams. The review report is being considered by the Administration.

End/Wednesday, March 22, 1995

Appointment of barristers in private practice as deputy judges ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Chief Secretary, Mrs Anson Chan, in the Legislative Council today (Wednesday):

Question:

Regarding the appointment of recorders and deputy judges of the High Court to hear cases, will the Government inform this Council:

30

(a) of the number of occasions during the past 5 years on which barristers from private practice have been appointed to sit as deputy judges under section 10 of the Supreme Court Ordinance;

(b) since the enactment in July 1994 of section 6A of the Supreme Court Ordinance how many barristers have indicated their willingness to be appointed as recorders, and how many have actually been appointed;

(c) whether the recorder system has resulted in any recorders sitting to hear cases; if not, when the system will be implemented and what is the likely number of cases to be heard by recorders during the next year;

(d) how much notice of sitting dates is given to recorders and deputy judges from private practice; and

(e) whether there is any system in place whereby recorders or deputy judges can be made available at short notice to hear a case if the assigned judge is unavailable; if so, how often has it been used and on how many occasions has a recorder or deputy judge from private practice declined to sit?

• .

Reply:

Mr President,

(a) During the past 5 years, there were 32 occasions when barristers in private practice were appointed to sit as deputy judges of the High Court under section 10 of the Supreme Court Ordinance (Cap 4).

(b) A total of 40 barristers have indicated interest in becoming recorders of the High Court. The Judicial Service Commission has made a preliminary assessment of the suitability of these barristers and is drawing up a shortlist of suitable candidates Appointments will be made by the Governor upon receipt of the Judicial Service Commission’s advice.

(c) Pending receipt of the advice of the Judicial Service Commission, it is not possible to estimate the number of recorders to be appointed during the next year and the likely number of cases to be heard by them. Once appointed, a recorder is expected to sit in the High Court for at least 4 weeks each year. It is estimated that approximately 10 recorders will share the workload of one full-time judge.

31

(d) Sitting dates for deputy judges (and recorders in the future) are normally arranged a few months in advance.

(e) Since July 1994, the Judiciary has kept a list of barristers in private practice who are prepared to sit as deputy judges of the High Court at short notice. So far two barristers from the list have been invited to take up cases just a few days in advance and both accepted these urgent appointments.

End/Wednesday, March 22, 1995

Wage ceiling ♦ ♦ ♦ ♦ ♦

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

Question:

Will the Government inform this Council whether it will review and raise the wage ceiling of $15,000 for the purpose of determining the severance payment, long service payment and compensation for injuries at work as stipulated in the Employment Ordinance and the Employees’ Compensation Ordinance; if so, whether it will propose amendments to these two Ordinances within the current legislative session; if not, why not?

Answer:

The wage ceiling for the calculation of severance payment and long service payment under the Employment Ordinance is now being reviewed. Subject to the advice of the Labour Advisory Board (LAB) on the issue, we plan to introduce the relevant amendments to the Employment Ordinance into the Legislative Council as soon as practicable.

As regards the calculation of compensation payments under the Employees’ Compensation Ordinance, the levels of payments for different compensation items are governed by different factors, and wage movements is just one of them. The wage level should therefore be considered in the context of the regular annual review on the levels of all the various compensation items for injuries at work under the Employees Compensation Ordinance The LAB will be consulted later in the year and subject to its advice, we hope to effect appropriate changes through a Legco resolution by the end of the year so that the new levels of compensation can come into effect in early 1996.

End/Wednesday, March 22, 1995

DAILY INFORMATION BULLETIN

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

Thursday, March 23, 1995

Contents Pag.eJVot

Expert talks on the Court of Final Appeal............................ 1

COMAC is entirely independent.............................................. 1

Transcript of the Governor's media session........................... 2

SFS on mandatory provident fund scheme..................................... 5

Call on public to report child abuse.................................

Consensus on public finances............................................... 9

Brave former Immigration Assistant awarded Queen's medal............. 11

Applications for entry of professionals from China for employment in HK 12 Governor visits Tung Tau Estate...................................... 12

New Lek Yuen Social Hygiene Clinic................................... 13

Bus-only lane to be introduced on Tuen Mun Road...................... 14

Revision of air transport licence fee................................ 16

S6 admission procedure shortened..................................... 16

Application deadline for language funds to close next Friday......... 17

Hong Kong Monetary Authority money market operations

19

1

Expert talks on the Court of Final Appeal

*****

The fifth round of talks between experts of the British and Chinese sides of the Joint Liaison Group on matters relating to the Court of Final Appeal will be held in Hong Kong tomorrow (Friday).

The British team will be led by British Representative Mr Alan Paul. The Chinese team will be led by Chinese Representative Mr Chen Zuo'er. They will be assisted by experts from the two sides.

End/Thursday, March 23, 1995

COMAC is entirely independent

*****

'The Governor, the Rt Hon Christopher Patten hoped that the expert talks on the Court of Final Appeal (CFA) tomorrow would give an early indication of the sort of progress that could be made.

In reply to questions by reporters on the talks after visiting Tung Tau Estate this (Thursday) afternoon, Mr Patten said if both sides were able to co-operate in establishing the Court of Final Appeal, it would help to confirm views about future commitments to the rule of law.

He added that everyone knew that the CFA was one of the important foundation stones for Hong Kong’s prosperity and stability.

When asked about the COMAC report, the Governor pointed out that COMAC was entirely independent.

"COMAC is independent, has always been independent, and will always be independent," he stressed.

"I don't see his reports before they are published, the Chief Secretary doesn't see his reports before they are published, nor would we ever seek to do so.

2

"It is exceptionally important that the Commissioner operates independently as a check on government and that we are absolutely determined he will continue to do so,” he said.

"Any suggestion to the contrary is totally, a 100 per cent, without foundation.”

End/ Thursday, March 23, 1995

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

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting Tung Tau Estate in Kowloon this (Thursday) afternoon.

Governor: I am very pleased to have been able to see with Rosana Wong, the Chairman of the Housing Authority, this afternoon some more examples of the work of the Housing Authority, the work in particular that they are doing to refurbish some of their older property. And I am also very pleased to see the excellent work being done by the Hong Kong Society for the Mentally handicapped and the Hong Kong Down Syndrome Society, both of which do superb job in Hong Kong. And I am pleased that the community, I think, has a better understanding and appreciation now of the very important role which they play. So it's been a great pleasure to see the work of those two non-governmental organisations once more. And I'd like to thank all those who work for them for their dedicated and professional work for Hong Kong.

Question: Did you aware that when you crossed that way somebody dropped an egg?

Governor: Yes, I think that somebody from one of the flats up above did so. As I understand it, when the Hong Kong Society for the Mentally Handicapped opened their hostel, there was a certain amount of hostility from some of the neighbours. I think that has largely disappeared over the months and years that the hostel has been operating. I think people recognise that it brings an important community facility to the neighbourhood. But there are obviously one or two people who still resent it being here.

Question: So you don’t take that action a personal one?

Governor: The view of the people who run the hostel is that it wasn't personal.

3

Question: Sir. Mr Lu has said in America that any talks he might have with you should be fruitful before he enters into them. What's your reaction to that?

Governor: I think my reaction is the same as the community's reaction. I think most people believe that the reason for having talks is to try to reach agreement, and to try to reach fruitful outcomes. If that wasn't the situation, talks would be merely for show rather than to try to achieve results. I think there is an overwhelming view in Hong Kong that it would be valuable and important for us to meet and talk and discuss the future of the community. I've made it absolutely clear that whenever Director Lu would like to come to Hong Kong, he would be an extremely welcomed visitor here. And that I would clear anything in my diary, and so would my senior officials, in order to have discussions with him. If you only had discussions when you were guaranteed an outcome, then I think a lot of people would wonder whether you ever have discussions at all. But I hope that we can have meetings and discussions and that they will help to increase greater understanding, greater awareness of the shared interest we have on the shared problems that we have to solve together. Perhaps I can just add one other thing. Director Lu is undertaking what I am sure will be an important visit around the United States. I think that everyone in Hong Kong, certainly myself and the Hong Kong Government, wish him well in his trip and hope that it provides a great deal of reassurance about the future. Both the Chief Secretary and I have been to the United States ourselves in the past to talk about Hong Kong. I hope that our trips have provided a good deal of reassurance. There has been occasionally a bit of background music when we've been on our visits. I can assure you the only background music for Director Lu's visit is the hope from me and from my senior officials and from the whole community that he and his colleagues do provide some reassurance about the situation after 1997.

Question: You say talks are not meant for show and the JLG expert are going to resume talks on the Court of Final Appeal tomorrow, do you expect your differences will be resolved this time?

Governor: I am not sure what the differences are. In fact, I think like many of my senior colleagues, I scratch my head sometimes to wonder what there is still to have an argument about, not only on the Court of Final Appeal, but on other things as well. We reached an agreement with Chinese officials in 1991. We've tried to implement that agreement in good faith, translating it into legislative form, and we put that legislation to Chinese officials last May. Now it is true that we've proposed some technical amendments, but we gave those to Chinese officials in January. And I don't think that they should delay things very much. We've had three sets of questions from Chinese officials, all of which we have answered promptly and comprehensively. So I do hope that the expert talks tomorrow will give us an early indication of the sort of progress that we can make because 1 think it would help to confirm views about future commitments to the rule of law, if we were able to eo-operate in establishing the Court of Final Appeal which everyone knows is one of the important foundation stones for Hong Kong's prosperity and stability.

4

Question: It's reported that Mr Wiggham in America turned down an invitation from Mr Lu, can you explain the reasons why he did that?

Governor: I don't think that the Commissioner in Washington had an invitation from Director Lu. I think you will find that he was invited by an institute to which Director Lu was speaking. So there was no snub meant to Director Lu and I am sure that no snub was taken.

Question: What do you think about Mr James So's retirement because he is the third secretary level official to leave the civil service in two years. Do you think it's a serious blow' to the civil service?

Governor: Well, of course, one of the reasons why there have been changes at the top of our civil service is because we have been completing, as I promised we would, the localisation of senior posts in the civil service as rapidly as possible. That isn't, of course, the reason for the retirement of Mr James So. We knew of his intention to retire some time ago. He will be retiring in September, until then he'll be continuing with his work and part of his work will be to help us in learning lessons from the COMAC report and in applying those lessons and ensuring even better co-ordination within the Government and between the Government and the Urban Council.

Question: When did you learn about his intention to retire?

Governor: Several weeks ago.

Question: Is that before the report?

Governor: Yes, it is before the report, and just to make one thing clear, COMAC is entirely independent. 1 do not see COMAC's reports before they are published. I did not see this report before it was published and I am sure COMAC himself would make that absolutely clear. COMAC is independent, has been, is and will remain independent.

Question: But it did cause some embarrassment?

Governor: It's certainly ensured that the government will have to look very carefully at the way we co-ordinate our activities, particularly those with the Urban Council.

Question: Would you appoint a Chinese official to replace Mr So?

Governor: Of course.

s

Question: This week's speculation is to the haste in which Mr So decided to retire, the fact that no replacement was named immediately, can you explain the reason for that?

Governor: Mr So has been going to retire, as I said for sometime It is not unusual for somebody's retirement to be announced before a replacement is named, particularly in the case of somebody wh< ,s not retiring until the autumn. But Mr So thought that yesterday was a sensible time to announce his retirement. One more.

Question: Mr So Kwok-wing said this morning that his report is not meant for reading by the governor or by Mrs Anson Chan, so does that mean . we should remain independent,does that mean the report from now on would not be read by you, or you will not...

Governor: You must understand what the situation is. COMAC is independent, has always been independent, and will always be independent I don't see his reports before they are published The Chief Secretary doesn't see his reports before they are published, nor would we ever seek to do so. It is exceptionally important that the Commissioner operates independently as a check on government and that's we are absolutely determined he will continue to do. And any suggestion to the contrary is totally, a 100 per cent without foundation. I hope that is clear totally and a 100 per cent without foundation Thank you very much

End/Thursday, March 23. 1995

SI S on mandatory provident fund schemi *****

The Secretary for Financial Services. Mr Michael Cartland, today (Thursday) urged employers and the insurance and trust management industries to co-operate with the Government to make the mandatory provident fund (MPF) system work effectively.

Speaking at a luncheon meeting of the Po Leung Kuk Directors. Mr Cartland said the Government aimed to have the law for the MPF in place within the current legislative session.

"The Government will certainly take into account the views of the public, legislators and the Chinese authorities in the process

"The result should be the development of a system which would enable employees to retire in dignity in a manner consistent with the independent self-reliant traditions which have served Hong Kong so well." he said.

6

Expanding on some of the features of the MPF, Mr Cartland said the Government considered the minimum obligatory contribution from employer and employee essential.

He said it was because the Government believed that the purpose of a mandatory retirement protection system should be to ensure that all those in the workforce had adequate basic financial protection upon retirement.

By requiring a minimum obligatory contribution from both parties, Mr Cartland said the Government would ensure that even those at a relatively low income level were protected.

Other essential features of the scheme would include a benefits-qualifying age of 65, preservation of benefits until the qualifying age and the portability of benefits from one employer to another.

"As you may appreciate, the main object of any system of retirement protection is to provide workers who have reached a certain age with a reasonable level of financial security.

"This can be achieved only if there is preservation of retirement benefits upon a change of job. and an arrangement for transfer of accrued employee benefits from one scheme to another."

Mr Cartland said to cater for the large numbers employed by small-scale employers and the self-employed, the Government also intended to establish residual pooling arrangements.

"A competitive, private-sector, solution with sufficient participation to minimise administration costs, is being sought to provide for these groups," he said.

On the issue of a Government guarantee, he said the Government's role under the proposed MPF would be to ensure prudential supervision and regulation of scheme administrators, and to minimise risk due to fraud or other unlawful activities in connection with the operation of these schemes.

"Within the MPF, we are considering the development of a scheme that would compensate for benefit losses due to fraud or other unlawful activities.

"A Government guarantee for investment management is not appropriate because it could encourage aggressive or imprudent fund management. It would also produce an immense contingent liability for the taxpayer," he added.

End/Thursday, March 23, 1995

Call on public to report child abuse ♦ ♦ ♦ * *

The Secretary for Health and Welfare, Mrs Katherine Fok, today (Thursday) appealed to the public not to turn a blind eye when they see a young boy or girl badly bruised or hurt.

They should also not turn a deaf ear to the screams of a child at night and must act if they suspect a child needs help.

"It is important that all who come into contact with children remain alert to the problem of child abuse and report what we see or hear to the authorities - to the Police or local social welfare workers.

"This problem more than many others is one that is often difficult to detect. Once detected, you may rest assured that we are doing all we can to ensure that both the abused and the abuser are given all the assistance they deserve," she said.

Mrs Fok was speaking on the topic "Facing up to Child Abuse" at the Rotary Club of Kingspark Hong Kong luncheon meeting today.

She told the Rotarians that child abuse was a problem which existed all over the world. However, in respect of the level of public awareness of the problem, Hong Kong has begun to face up to the problem which has now become more openly recognised.

Citing statistics, she said the number of child abuse cases in Hong Kong had increased from 429 in 1990 to 456 in 1993. The figure dropped to 422 last year.

Over 85 per cent of the cases reported in 1990 and 65 per cent in 1994 were of physical abuse. And due possibly to increased public awareness and readiness to bring the problem into the open, there was an obvious rising trend in the number of sexual abuse cases - from two per cent in 1990 to 17 per cent of the total abuse cases last year.

In tackling these issues, she said, the Government must respect the rights of the parents as well as that of the children.

But this raises very difficult questions for a Government: When should Government intervene if a child is at risk? When would intervention be considered as being intrusive and taking away the rights of the parents?

8

"These are weighty moral questions which any agency acting in this area has to address.

"It requires a highly professional judgment to strike the right balance," she maintained.

The Secretary outlined the following measures planned or taken by the Government to tackle the child abuse problem in Hong Kong:

* a Child Protection Registry has been set up within the Social Welfare Department to provide comprehensive data on the profile of cases and other statistics to help better understand the problem and develop services to prevent child abuse;

* the Protection of Children and Juveniles Ordinance has been amended to provide a new procedure whereby the Director of Social Welfare can serve a child assessment notice to require a parent or a guardian to take a child who is suspected of being abused for medical, psychological or social assessment or to remove the child for such purpose if the notice is not complied with;

proposed amendments will be introduced into the Legislative Council in its current session to enable abused children to testify through live television links or videotape and for their uncorroborated evidence to be accepted in court; and

* five Child Protection Workers will be added in the coming financial year to the existing establishment of 11 in the Child Protective Services Unit of the Social Welfare Department to provide services for child abuse victims and their families.

In addition, the department plans to set up Multi-disciplinary District Forums on Child Abuse in four districts in 1995/96 to share, study and tackle the problem of child abuse on a district basis. A similar pilot project was set up in 1993 in Tuen Mun where there is the highest number of child abuse cases.

Mrs Fok also noted that a publicity campaign focusing on educating the general public on early detection and reporting of child abuse cases, would be launched tomorrow (Friday).

"It will include television announcements, a poster, a series of leaflets on each category of abuse and a radio programme," she said.

9

’’Integration of child abuse issues into the school curriculum and the Family Life Education programmes will be further examined by the Working Group.”

To beef up family and child welfare services, the Secretary said the Government would spend around $1.1 billion in the coming financial year, an increase of almost 20 per cent over the budget for this year.

"We will provide, among other things, more family caseworkers to improve our counselling service and more aided child care places," she said.

"But there is a limit to what professionals can do, both in the preventive and curative fields, and a great deal must depend on the families themselves."

Concluding, Mrs Fok stated that the interests and welfare of children, especially vulnerable children, were closed to her heart.

"The Government is committed to combating child abuse through the continued provision of professional services in support of child and family welfare. It is important that we continue to target both the child and the family.

"It is also vital for the community to face up to the problem of child abuse and, together, tackle it with the utmost vigour," Mrs Fok urged.

End/Thursday. March 23, 1995

Consensus on public finances *****

One of the most remarkable things about Hong Kong, and a major contributor to its economic success, is the high degree of consensus on public finances, the Secretary for the Treasury, Mr Donald Tsang, said today (Thursday).

Speaking at a lunch meeting of business associations and chambers of commerce, Mr Tsang said it was important to nurture the spirit of consensus during the process of formulating the Budget.

He said the process of preparing the annual budget began in April and May of the preceding year.

10

In a few weeks time, he said, the Financial Secretary would begin to prepare the 1996 Budget by contacting all Members of the Legislative Council and to meet them to discuss expenditure priorities for the following year’s budget.

’’This series of consultations, spread over a few weeks, provides a valuable opportunity for the Administration to improve its understanding of the community's aspirations, and for the community - through the Legislative Council - to make itself heard.

"This takes place alongside the consultation carried out by our Policy Secretaries with their network of advisory committees and professional contacts. Thus the resource requirements of their programmes are defined and honed," he said.

He said the feedback from this consultation process was a major factor when Star Chamber - which comprises the Chief Secretary, the Financial Secretary, the Secretary for the Civil Service and the Secretary for the Treasury - sat down to consider the competing bids from Policy Secretaries for the annual Resource Allocation Exercise and to assist the Governor in preparing his Annual Policy Address

The consultation on revenue measures began in the autumn of each year with the Financial Secretary once again making contact with all Legco members and interested parties and the culmination of this process was the Budget speech in early March, said Mr Tsang.

"Once the Budget proposals have been promulgated, they are scrutinised in public, justified in public, debated and voted on in public," he added.

To further involve the public in the Budget process, Mr Tsang said starting from next year, the complete draft Estimates would be fully bilingual.

"Thus the full picture of what we are doing will be readily accessible to all Hong Kong people in both official languages. In a modest way. I hope this small step will contribute to the consensus building process," he said.

Mr Tsang said the Government also proposed to bring the Chinese side inside the budget process.

11

’’The consultation package that we put forward to the Chinese side last year is comprehensive and genuine,” he said.

A preliminary outline of the budgetary process had already been given to China in his recent trip to Beijing, said Mr Tsang : " I look forward to a positive response.”

End/Thursday, March 23, 1995

Brave former Immigration Assistant awarded Queen’s medal

*****

A former Immigration Assistant, the late Mr Ng Hung-shek, has been awarded the highest honour for civilians by the Queen for his bravery in helping to apprehend five armed robbers on March 20, 1990.

He was shot at the back by one of the robbers and died shortly afterwards.

His father, Mr Ng Yuet-sang, received the George Medal (Posthumous) on behalf of his son during an investiture at the Buckingham Palace on Tuesday.

”It is encouraging to know that Mr Ng’s selfless act of courage was given the highestjecognition,” the Director of Immigration, Mr Laurence Leung Ming-yin, said.

"His immense sense of law and order and civic duty have epitomised the conduct of a good citizen and a member of a disciplined service," he added.

The George Medal is awarded to civilians for gallantry of an extremely high order. It is recommended only sparingly. The last award of this medal to Hong Kong people was in 1973.

End/Thursday, March 23. 1995

12

Applications for entry of professionals from China for employment in HK ******

The Immigration Department announced today (Thursday) the results of the fourth ballot exercise of applications for entry of professionals and managers from China for employment in Hong Kong.

”Up to the end of last month, the deadline for the submission of the preliminary applications, a total of 3,129 applications were received,” a spokesman for the Immigration Department said.

"More than half of the applications arc from the trading, construction and finance sectors and the most popular jobs are engineers, administrators and marketing executives,” the spokesman added.

In the final ballot exercise held today, 250 applications were randomly selected by computer from the applications received.

"Successful applicants will be notified in writing individually," the spokesman said.

"Unsuccessful applicants in the ballot exercise will be put into a reserved list to fill any quota which might be left unfilled, for whatever reasons, by the successful applicants. They will be informed in writing individually their position in the reserved list," he stated.

For enquiries, employers may telephone 2824 6111 or use faxline 2877 7711.

End/Thursday, March 23, 1995

Governor visits Tung Tau Estate *****

The Governor, the Rt Hon Christopher Patten, today (Thursday) visited Tung Tau Estate to look at the refurbishment programme of older blocks and welfare facilities provided in the Estate.

Accompanied by the Chairman of the Housing Authority, Ms Rosanna Wong, and Deputy Director of Housing (Housing Management and Works), Mrs Fanny Law, the Governor first visited a family of five living in Block 23. The family had moved to this 36.7-square-metre flat since the 60s after a clearance exercise in Yau Ma Tei.

13

The party then proceeded to a nearby rest garden for a briefing on the refurbishment programme for Block 22. The Governor was told that the block, built in 1965, was scheduled for redevelopment but underwent extensive refurbishment in order to provide housing for the much needed small households affected by clearance operations in the urban area.

Mr Patten called on a 71-year-old tenant and her husband living in an 18.6-square-metre refurbished flat in Block 22 and saw their living conditions.

He was told that an Estate Liaison Officer Scheme had been implemented through which housing staff, serving as liaison officers, made arrangements with Government departments or agencies for the needy elderly and helped them build up a social network.

Liaison officers have also arranged for the installation of emergency alarm systems in flats to allow elderly people to press alarm buttons during emergencies.

The Governor then visited the Tung Tau Hostel for the Severely Mentally Handicapped at Kwai Tung House and watched inmates attend interest classes.

He finally visited the Parents' Resource Centre for the Down Syndrome at Chun Tung House. After inspecting the library and the play room, he met members of the Centre.

Mr Patten was told that other services, including day nurseries, youth and elderly centres, as well as shopping, educational and medical facilities were also provided in the Estate.

End/Thursday. March 23, 1995

New Lek Yuen Social I lygiene Clinic *****

The Department of Health today (Thursday) announces that the new Lek Yuen Social Hygiene Clinic will start operation next Wednesday (March 29).

The clinic is located on the third floor of Lek Yuen Health Centre, No. 9 Lek Yuen Street, Sha Tin. It will provide free services to both male and female patients seeking treatment on sexually transmitted diseases.

14

The registration hours are as follows:-

Monday to Friday Saturday

9 am - noon and 2 pm - 4 pm

9 am - noon

End/Thursday, March 23, 1995

Bus-only lane to be introduced on Tuen Mun Road

*****

The Transport Department reminded motorists that a bus-only lane would be introduced on Tuen Mun Road starting on Saturday (March 25).

A spokesman for the department said it would be designated at the nearside lane of the Kowloon-bound carriageway between So Kwun Wat and a point 300 metres to the west of Tsuen Wan Road.

It will be operational between 6.30 am and 9 am daily except Sundays and public holidays.

The bus-only lane will be used by franchised and non-franchised buses, including school buses and other coaches.

The spokesman said legislation had been amended to allow medium and heavy goods vehicles to use the middle and offside lanes of the Kowloon- bound carriageway of Tuen Mun Road during the operation hours of the bus-only lane, with the offside lane for overtaking.

"Outside the bus-only lane operation hours, the nearside lane will be a normal traffic lane on an expressway. All traffic should keep to the left unless overtaking. Buses, and medium and heavy goods vehicles will not be allowed to use the offside lane," he said.

He reminded motorists that during the bus-only lane operation hours, Kowloon-bound motorists will not be allowed to exit Tuen Mun Road at Siu Lam and Sham Tseng Interchanges.

To reach their destinations in Siu Lam and Sham Tseng from Tuen Mun, they should use Castle Peak Road.

15

At the same time, motorists on Castle Peak Road are not allowed to join Tuen Mun Road Kowloon-bound at Siu Lam Interchange and Tuen Mun Road both bounds at Sham Tseng Interchange. They should remain on Castle Peak Road for their journeys.

"The introduction of the bus-only lane is aimed at improving the efficiency and reliability of public transport services. It is hoped that this will also encourage private motorists to switch to public transport to help alleviate congestion on Tuen Mun Road," the spokesman said.

To tie in with the scheme, Kowloon Motor Bus has already introduced two new services operating from Sam Shing and Sham Tseng to Tsuen Wan Mass Transit Railway Station. These two new bus routes are welcomed by local commuters and are being well patronised. Their service level will be further improved if demand increases.

The queues of general traffic on Tuen Mun Road and Castle Peak Road are expected to be longer after the introduction of the bus-only lane, and some delays in car travel are likely. Motorists are advised to plan their journeys well and travel early.

The pilot scheme is scheduled to last three weeks. The Transport Department and the Police will closely monitor the scheme and a review will be carried out in three weeks' time, the spokesman said.

The Transport Department has also set up two telephone hotlines for the scheme. The hotlines, 2399 2437 and 2399 2424, are already in operation until March 31 to answer public enquiries on the operational details of the bus-only lane scheme.

Attention News Editors:

The Transport Department has laid on facilities for the media to observe the operation of the bus-only lane on Tuen Mun Road on Saturday (March 25).

Press coaches will depart Kwai Fong Bus Terminus at 7.15 am for Tuen Mun, making stops at suitable locations along the route. Media representatives can reach the bus terminus by using the Kwai Fong MTR Station exit close to the Hang Seng Bank. A location plan will be boxed. Assemble time is 7 am.

TV crews are also advised to make use of this facility because their own vehicles will not be allowed to use the bus-only lane and the two interchanges.

16

A briefing on the operation of the bus-only lane scheme will be given by a Transport Department official after the visit.

GIS officers will be on hand to help.

End/Thursday, March 23, 1995

Revision of air transport licence fee

*****

The Govemor-in-Council has approved a proposal to revise the air transport licence fee, a Government spokesman said.

The new fee payable for the grant of an air transport licence to local airlines will be revised to a fixed cost of $5,650 per application plus $5,170 for each point covered by the licence, excluding Hong Kong, the spokesman said.

“The fee revision is in line with the government policy of recovering the administrative costs associated with the provision of service.

"The new fee will have only a minimal effect on the total operating cost of local airlines, and any indirect impact on consumers should be negligible," he said.

The new fee will take effect on May 1 this year.

End/Thursday, March 23, 1995

S6 admission procedure shortened *****

The Education Department announces today (Thursday) the Secondary 6 (S6) admission procedure for 1995-96 school year will be shortened to nine working days from 11 as in the previous years.

A spokesman for the Education Department said a total of about 23,790 S6 places, an increase of 310 or 1.32 per cent over the previous year of 23.480, were available in September for students to apply.

17

The spokesman said the department had produced a new leaflet and a summary table containing admission details, addresses and telephone numbers of the 19 Education District Offices to help students seek further information.

y;,. r

He said the leaflet and summary table would be collected by schools for distribution to S5 students from tomorrow (Friday).

The spokesman said private candidates would receive the leaflet and summary table from the Hong Kong Examination Authority when it sent out the Hong Kong Certificate of Education Examination (HKCEE) Identification Forms.

Additional leaflets and summary table are available from District Education Offices and district offices throughout the territory.

• ■’ P ‘.>C y H

A 24-hour telephone enquiry service will be operated in early August. Students who wish to hear S6 places admission procedures may dial 2891 0088.

In addition, a hotline will be set up at the same time, when results of HKCEE are announced, to help students seek advice or clarification about admission procedures, and to handle any complaints.

End/Thursday, March 23, 1995

Application deadline for language funds to close next Friday ♦ ♦ ♦ ♦ « 4 ■ ,

Organisations, individuals, schools and kindergartens interested in undertaking projedts or activities to improve language standards in Hong Kong are reminded to return their applications for funding from the Language Fund by next Friday (March 31) when the first call for applications ends.

The Language Fund Secretariat has so far distributed about 800 application forms and received six applications.

The fund is aimed at supporting proposals and initiatives that will raise the ^ Chinese (including Putonghua) and English standards, enhance existing efforts and meet temporary shortfalls in language teaching resources.

In addition, the fund will encourage research into problem areas and initiation of new approaches.

18

The Language Fund Advisory Committee has identified some possible areas in which proposals may be drawn up. These include:

improvement of the skills of language teachers and production of additional teaching materials;

programmes to promote students' interest in language learning and develop skills of listening, speaking, reading and writing;

* development of reference materials on what constitutes good Chinese language use in Hong Kong as a useful reference for teachers and the public;

* trying out of various approaches to the development of bilingual proficiency at all levels, in particular pre-primary and primary levels;

training of professionals in translation who are proficient in both English and Chinese;

local research into child language development and the acquisition of bilingual proficiency;

local research into language requirements, language uses and desired profiles of bilingual proficiency for academic and vocational purposes;

investigation into and provision of language improvement measures for the working population;

* research programme to follow the academic and personal development of groups of students, matched for academic ability and experiencing different medium of instruction models;

* assessment of language proficiency in Hong Kong; and

* regular surveys of language ability of new entrants to jobs with respect

to listening, speaking, reading and writing skills.

Application forms should be returned to the Language Fund Secretariat in Room 1123 of Wu Chung House, 213 Queen Road East, Wan Chai.

For further enquiries, please contact the Language Fund Secretariat on 2892 6642 or by fax on 2574 0340.

End/Thursday, March 23, 1995

19

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,908 0930 +705

Closing balance in the account 2,632 1000 +694

Change attributable to: 1100 +704

Money market activity +704 1200 +704

LAF today +20 1500 +704

1600 +704

LAF rate 4.25% bid/6.25% offer TWI 117.9 *-0.2* 23.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.06 14 months 2605 6.35 100.15 6.30

1 month 5.17 23 months 2702 7.50 101.45 6.79

3 months 5.54 28 months 3707 6.95 100.26 6.94

6 months 5.79 34 months 3801 8.00 102.35 7.19

12 months 6.21 60 months 5003 7.75 100.68 7.73

Total turnover of bills and bonds - $6,657 million

Closed March 23,1995

End/Thursday, March 23, 1995

DAILY INFORMATION BULLETIN

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

Friday, March 24,1995

Contents Page No-

Anti-child abuse publicity campaign launched.................... 1

JLG expert talks on Hong Kong's sewage disposal scheme......... 3

Regulation for bus-only lane.................................... 3

Personal Communications Services Licensing...................... 4

Provisional statistics of retail sales January 1995 ............ 6

Survey of Employment and Vacancies March 1995 .................. 8

North-East Lantau Port Outline Zoning Plan published........... 10

Reclamation in North Point proposed............................ 12

New roads proposed for Yuen Long and Tuen Mun.................. 13

Land to be resumed for public golf centre...................... 14

Sewer improvement works for Yuen Long.......................... 14

Tenders invited for cleansing and inspecting sewers............ 15

Pre-qualification invited for seawall project at Tseung Kwan O. 16

Minibuses to take on new colour scheme......................... 17

Hong Kong Monetary Authority money market operations

18

1

Anti-child abuse publicity campaign launched

*****

The first stage of an anti-child abuse publicity campaign, focusing on educating the general public on early detection and reporting of child abuse cases, was launched by the Director of Social Welfare, Mr Ian Strachan, today (Friday).

Speaking at a press conference to launch the publicity campaign, Mr Strachan said child abuse was a very complex problem and in the majority of cases, the abusers were usually persons who played an important part in the life of the child, such as the parents, relatives or other care providers.

’’Children are close to them and dependent on them for physical care and emotional support. They are people whom children naturally trust and respect.

’’Very often, children may not be aware that they are being abused, or even if they are aware of it, will find it difficult to speak up, fearing that they may be further punished or neglected.

”On the other hand, it is also difficult for the abusers, especially parents, to admit that a problem exists and seek professional help,” Mr Strachan said.

In order to protect the vulnerable children and to prevent occurrence of child abuse, Mr Strachan said early identification and reporting of suspected and potential cases were essential.

"Awareness among the general public and multi- disciplinary professionals working with children are fundamental to prevent and contact child abuse.

"To achieve this aim, publicity and public education are crucial in disseminating the information, the messages and arousing awareness," he said.

Mr Strachan said a Public Education Sub-committee under the Working Group on Child Abuse was set up in August last year to maximise publicity efforts and available resources.

2

"Its objective is to formulate an overall effective strategy for enhancing the publicity programmes and to co-ordinate publicity and public education efforts on prevention of child abuse.

"To start off, the Public Education Sub- committee aims at launching publicity by stages targeting at the general public, parents and children," Mr Strachan said.

He said the following publicity materials would be launched in the first stage:

* a series of five information leaflets to help the public to identify the child abuse problem as well as to develop a positive attitude and skills in child-rearing;

* a poster arousing public attention to the problem;

* a television announcement of public interest (API) to make the public aware of child abuse and encourage them to report;

* a one-month radio programme, starting at RTHK Channel .1 next Monday (March 27), to focus on the care and concern for children.

Mr Strachan said apart from the publicity campaign, the sub-committee would further work out the public education strategy including future publicity campaigns and the integration of child abuse issues into the school curriculum and family life education.

"It is only with the growing awareness of the public on the problem of child abuse, and the readiness to bring the cases to the surface for assistance that we will be able to protect our children and to combat child abuse in our community," Mr Strachan said.

End/Friday, March 24, 1995

3

JLG expert talks on Hong Kong's sewage disposal scheme

* * * * *

A third round of talks between experts of the British and Chinese sides of the Joint Liaison Group on matters relating to Hong Kong's sewage disposal scheme will be held in Hong Kong on March 27.

The British team will be led by the Hong Kong Government Secretary for Works, Mr James Blake. The Chinese team will be led by Chinese Representative Mr Chen Zuo'er. They will be assisted by experts from the two sides.

End/Friday, March 24, 1995

(

Regulation for bus-only lane

* * * * *

The Road Traffic (Expressway) (Amendment) Regulation 1995 was gazetted today (Friday) to allow for the introduction of bus only lanes on expressway.

A Government spokesman said the amendment was necessary for implementing a trial scheme in Tuen Mun Road. Starting from tomorrow (Saturday), the nearside lane of Tuen Mun Road would be designated as "bus only".

He explained that the scheme was introduced to improve public transport services for residents of the North West New Territories and was in line with the Government's policy of giving priority to public transport in the use of road space.

"Depending on the outcome of this trial scheme, similar arrangements will be introduced for other expressways in future," he added.

The spokesman said with the amendment, a bus lane would cease to be considered as a lane for the purposes of determining the number of lanes under the Road Traffic (Expressway) Regulations.

4

"At present, certain class of vehicles, such as medium and heavy goods vehicles, are prohibited from using the offside lane of an expressway where there are three or more traffic lanes open for use in the same direction.

"The amendment regulation seeks to lift this restriction in the situation where the nearside lane of an expressway is designated as a bus lane," the spokesman said.

He said the amendment also called for a new provision to provide that where the nearside lane was designated as a bus lane, a driver other than bus driver would be required to drive in the lane immediately to the right of the bus lane.

"He should also move back, after overtaking other vehicles or merging with one or more traffic lanes or diverging from other traffic lanes, to the lane immediately to the right of the bus lane," he said.

End/Friday, March 24, 1995

Personal Communications Services Licensing *****

The Telecommunications Authority, Mr Alexander Arena, announced today (Friday) that 14 proposals had been received from consortia interested in operating Personal Communications Services (PCS) in Hong Kong. Most of these consortia had local and overseas partners.

"I am glad to see such an enthusiastic response from the telecommunications industry. This shows that both local and overseas investors have great confidence in the development of the telecommunications industry and the future of Hong Kong," Mr Arena said.

"We are looking for proposals which offer the best value-for-money for

consumers.

5

"The proposals received will be evaluated carefully against a set of criteria, namely, customer services and charges, technical quality, investment and finance, corporate structure, implementation schedule, level of performance bond, management and technical expertise, other benefits to the local telecommunications industry and economy, and research and quality of proposal. All the information supplied to us will be kept in strict confidence," Mr Arena said.

An inter-departmental working group has been formed to evaluate proposals and make recommendations to the Telecommunications Authority on which applicants to license.

Membership of the working group comprises representatives from the Office of the Telecommunications Authority, the Economic Services Branch, the Attorney General's Chambers and the Independent Commission Against Corruption.

A formal announcement of the successful applications for PCS is expected to be made around August this year.

In November last year, the Telecommunications Authority announced that up to six licences would be issued for the provision of PCS.

The decision was the outcome of an industry consultation process which indicated strong support for the granting of additional licences to enable the introduction of new services based on new and advanced mobile communication technologies and the allocation of more spectrum for such services.

End/Friday, March 24, 1995

6

Provisional statistics of retail sales January 1995 *****

The value of total retail sales in January 1995, estimated at $20.7 billion, increased by 14% when compared with January 1994. After discounting the effect of price changes over the period, total retail sales rose by 7% in volume in January 1995 over a year earlier.

The above provisional statistics of retail sales are released today (Friday) by the Census and Statistics Department.

The increase in total retail sales in January 1995 was mainly attributable to the notable growth in sales of clothing and footwear, and sales in supermarkets as the Lunar New Year approached. Sales of these two items increased by 29% and 21% respectively in value and their respective increases in volume terms were 16% and 12%.

It should be noted that these year-on-year growth rates were also affected by a relatively low comparison base in January 1994, as the Lunar New Year took place in February and not January in that year.

Sales of jewellery, watches and clocks and valuable gifts, and sales in department stores also increased considerably, both by 16% in value. In volume terms, they increased by 16% and 7% respectively.

Moderate increases were recorded for sales of consumer durable goods (other than motor vehicles) (by 12% in value and 8% in volume); and fuels (by 11% in value and 3% in volume).

Meanwhile, sales of food, alcoholic drinks and tobacco increased by 8% in value, but dropped by 3% in volume.

Sales of motor vehicles decreased by 16% in value and 25% in volume.

Compared with December 1994, but bearing in mind that this comparison may be affected by seasonal factors, total retail sales in January 1995 increased by 5% in value and 7% in volume.

7

The volume of retail sales is derived from the value of retail sales after adjusting for price changes. The relevant components of the Consumer Price Index are used as deflators.

Table 1 presents the revised total retail sales figure for December 1994 and the provisional figure for January 1995.

Table 2 shows the value and volume indices of retail sales in December 1994 and January 1995 for all retail outlets and by type of retail outlet, with average retail sales from October 1989 to September 1990 taken as 100. Comparisons of the January 1995 results with those for December 1994 and those for January 1994 are also given.

The report containing the analysis of the January 1995 results is now on sale at $4 per copy at the Government Publications Centre, Queensway Government Offices, Low Block, Ground Floor, 66 Queensway; and the Publications Section of the Census and Statistics Department, 19th Floor, Wanchai Tower, Wan Chai.

Enquiries about the survey results may be directed to the Wholesale and Retail Trade Statistics Section of the Census and Statistics Department (Telephone 2802 1258).

8

TABLE 1 : TOTAL RETAIL SALES

Total Retail Sales for January 1995 (Provisional Figure)= HK$20,670.8 million

for December 1994 (Revised Figure) = HKS19,607.0 million

TABLE 2 : VALUE AND VOLUME INDICES OF RETAIL SALES FOR DECEMBER 1994 AND JANUARYJ995

(Monthly average of Oct. 89 - Sept. 90 - 100)

Index number 1995 January 1995

Type

Type of Outlet of December January compared with compared with

Index 1994 1995 December 1994 January 1994

(Revised (Provisional

figures) figures)

(A) FOR ALL RETAIL OUTLETS (Point) (Point) (Points) (%) (Points) (%)

Value 208.8 220.1 *11.3 ♦5.4 ♦27.1 ♦ 14.0

Volume 159.1 169.4 *10.3 ♦6.5 ♦11.0 ♦6.9

(B) BY TYPE OF RETAIL OUTLET

Food, alcoholic drinks Value 142.6 150.5 ♦7.9 ♦5.6 ♦11.5 ♦8.3

and tobacco (other Volume 104.3 108.2 ♦3.9 +3.7 -3.3 -3.0

than supermarkets)

Supermarkets 0 Value 171.5 197.2 ♦25.7 + 15.0 ♦34.2 ♦21.0

Volume 119.3 137.4 ♦18.2 +15.2 +14.7 ♦12.0

Fuels Value 158.1 145.8 -12.3 -7.8 ♦14.2 ♦ 10.8

Volume 108.8 100.4 -8.4 -7.8 ♦3.2 ♦3.3

Clothing, footwear and Value 321.2 385.7 ♦64.5 ♦20.1 ♦85.9 ♦28.6

allied products Volume 210.3 266.7 +56.4 ♦26.8 +37.1 ♦16.2

Consumer durable goods Value 202.7 191.5 -11.1 -5.5 -2.0 -1.0

Volume 165.6 156.0 -9.7 -5.8 -9.0 -5.4

- Motor vehicles Value 190.6 175.1 -15.5 -8.1 •33.8 -16.2

and parts Volume 132.7 119.1 -13.6 -10.3 •38.9 -24.6

- Consumer durable Value 211.4 203.4 -8.0 -3.8 ♦21.1 ♦ 11.6

goods other than motor vehicles Volume 189.4 182.6 -6.8 -3.6 ♦ 12.7 ♦7.5

and parts

Department stores Value 210.2 219.4 ♦9.2 ♦4.4 ♦30.4 ♦16.1

Volume 145.3 158.9 ♦ 13.6 ♦9.4 ♦9.8 ♦6.6

Jewellery, watches Value 206.0 222.4 ♦16.5 ♦8.0 ♦30.0 ♦15.6

and clocks, and valuable gifts Volume 196.5 212.0 ♦ 15.5 ♦7.9 ♦29.3 ♦ 16.0

Other consumer goods Value 235.7 231.2 -4.5 -1.9 ♦25.7 ♦12.5

not elsewhere classified Volume 182.1 179.2 -2.9 -1.6 ♦ 11.3 ♦6.7

NOTE : 0 Not including supermarkets operating in department stores.

End/Friday, March 24, 1995

9

Survey of Employment and Vacancies March 1995 *****

The Census and Statistics Department has just started the Quarterly Survey of Employment and Vacancies to collect data on employment and vacancies in major sectors of the economy in respect of March 1995.

This survey is conducted quarterly and the survey results are useful in serving as short-term economic indicators and providing information on the latest changes in the labour market.

This round of the survey covers about 68,000 establishments which are drawn from various sectors including the industrial sector (mining and quarrying; manufacturing; electricity and gas), the distributive trades sector (wholesale, retail and import/export trades, restaurants and hotels) and the services sector (transport, storage and communication; financing, insurance, real estate and business services; community, social and personal services).

Information on the number of persons engaged and vacancies as at 31 March 1995 will be sought from each sampled establishment and questionnaires are being mailed to them.

In accordance with the Census and Statistics (Quarterly Survey of Employment & Vacancies) Order, these establishments are required to complete and return the questionnaires to the Census and Statistics Department within the specified period. If they have difficulties in completing the questionnaires, they are welcome to contact the department for assistance at 2582 5076.

End/Friday, March 24, 1995

10

North-East Lantau Port Outline Zoning Plan published * * * * *

The Town Planning Board today (Friday) announced the publication of the draft North-East Lantau Port Outline Zoning Plan (OZP).

The OZP covers an area of about 1,650 hectares including the proposed reclamation in North-East Lantau.

"The main purpose of the plan is to provide a land use planning framework to develop the area for major port facilities including container terminals and back-up areas, river trade cargo terminals, boatyards and port support industrial uses," a spokesman for the Board said.

"About 692 hectares of land within the area are planned for four new container terminals (CT), that is CT 10 to CT 13 and their back-up areas.

"There will be a total of 17 container berths, each with a terminal area of about 20 hectares.

"Adequate back-up land for parking of container vehicles and storage of containers, at a level of about 10 hectares per berth, has also been reserved," he added.

Detailed environmental impact assessments have been undertaken for the proposed CT 10 and CT11, and the proposed development has been found to be environmentally acceptable subject to the implementation of certain mitigation measures including two 25-metre high earth bunds, one at the west end of CTlOand CT11.

To support the operation of the new container port, 85 hectares of land within the future reclamation are proposed for industrial and business park uses to provide high quality environment for mainly port-related offices and industrial enterprises.

In addition, about 50 hectares of land are earmarked for river trade cargo terminal and related uses; and 64 hectares of land for boatyards and marine-oriented industrial uses.

11

Most of the land is yet to be reclaimed and detailed planning for these facilities will be undertaken by the Government.

The main access to the area will be via Tsing Ma Bridge, Kap Shui Mun Bridge and the North Lantau Expressway which are under construction.

In the longer term, two additional transport links, namely, the Sham Tseng Link and the Green Island Link are preliminary proposed on the OZP for further study by the Government.

The Airport Railway will run along the northern part of the area with a station and public transport interchange facilities at Yam O to provide public transport services for future workers of the port.

The draft OZP (No. S/I-NELP/1) is now available for public inspection until May 24 during normal office hours at:-

* Planning Department, 16th Floor, Murray Building. Garden Road, Hong Kong;

* Lantau & Islands District Planning Office, 10th Floor, Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong;

* Tsuen Wan District Office, First Floor, Tsuen Wan Station Multi-Storey Carparking Building, 174-208 Castle Peak Road, Tsuen Wan, New Territories; and

* Islands District Office, 20th Floor, Harbour Building, 38 Pier Road, Central, Hong Kong.

12

Any person affected by the draft plan may submit written objection on or before May 24 to the Secretary of the Town Planning Board, c/o Planning Department, 13th Floor, Murray Building, Garden Road, Hong Kong.

Copies of the draft plan are available for sale at the Survey and Mapping Office, Lands Department, 14th Floor, Murray Building, Garden Road, Hong Kong, and Kowloon Map Sales Section, Ground Floor, 382 Nathan Road, Kowloon.

End/Friday, March 24, 1995

Reclamation in North Point proposed *****

The Government has proposed reclaiming land for construction of the proposed North Point Government Offices at Java Road, North Point.

The reclamation will be carried out within an area of about 840 square metres of foreshore and seabed at North Point.

The work will begin in October this year for completion around January next year.

The extent of the area affected is notified in the 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 the Eastern District Office, ground floor, Eastern Law Courts Building, 29 Tai On Street, Sai Wan Ho.

The plan can also be purchased at the Survey and Mapping Office.

Any person who considers that he has an interest, right or easement in or over the foreshore and seabed involved will be affected, may submit a written objection to the Director of Lands on or before May 24.

End/Friday, March 24, 1995

13

New roads proposed for Yuen Long and Tuen Mun *****

The Territory Development Department has proposed to construct new roads to cope with planned developments in Yuen Long and Tuen Mun.

One of the new roads will be built in Kam Tin along a proposed drainage channel from Wang Toi Shan to Kam Tin San Tsuen to facilitate channel maintenance works.

The works for this project also include reconstruction of existing roads and footpaths, and construction of associated earth, drainage and slope works.

The news roads for Tuen Mun will be built in Area 35 and 52 - one in Area 35 and two in Area 52 - to serve the proposed development there.

The works include construction of a footbridge system, footways and cycle tracks, as well as associated drainage and earthworks.

Notices about the proposed works in Yuen Long and Tuen Mun has been gazetted today (Friday).

The plan and scheme for the Yuen Long works can be seen at the Central and Western District Office; Yuen Long District Office; and Yuen Long District Lands Office.

The plan and scheme of the Tuen Mun works may be seen at the Central and Western District Office; Tuen Mum District Lands Office; and Tuen Mun District Office.

Anyone wishing to object to the proposals should write to the Secretary for Transport, Central Government Offices, East Wing, second floor, Lower Albert Road, no later than May 23, 1995, describing his interest and how he will be affected.

End/Friday, March 24, 1995

14

Land to be resumed for public golf centre *****

The Government will resume eight private agricultural lots with a total area of 4,451.5 square metres for development of a public golf centre at Kau Sai Chau, Sai Kung.

Resumption work is expected to start in June this year and will take six months to complete.

Details were notified in the Gazette today (Friday).

The land will be reverted to the Government three months from the date of the Gazette Notice.

End/Friday, March 24, 1995

Sewer improvement works for Yuen Long

* * * * *

The Government will build a sewage rising main in Yuen Long to improve the existing sewer network in Yuen Long.

The works will be carried out within an area of about 600 square metres of foreshore and seabed.

The project will start in July this year for completion around December

1996.

The extent of the area affected was notified in the 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 the Yuen Long District Office, ground floor, Yuen Long District Branch Offices Building, 269 Castle Peak Road, Yuen Long.

The plan can also be purchased at the Survey and Mapping Office.

15

Any person who considers that his interest, right or easement in or over the foreshore and seabed involved will be affected, may submit a written claim for compensation to the Director of Lands on or before March 24, 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 the claim.

End/Friday, March 24, 1995

Tenders invited for cleansing and inspecting sewers ♦ ♦ ♦ ♦ ♦

The Drainage Services Department is inviting tenders for sewer cleansing and inspection works in Tsim Sha Tsui, Kowloon City and Wong Tai Sin.

The works include the cleansing of sediment by high pressure water jet and internal inspection by television of large foul sewers under the main traffic routes.

The purpose of the works is to record the structural and service condition of the sewers to formulate a sewer maintenance programme. The removal of sediment before inspection will restore the hydraulic capacity of the sewers and reduce the risk of flooding.

The works are scheduled to begin in June this year and will take about 12 months to complete.

A notice inviting tenders was gazetted today (Friday).

Tender forms and further particulars may be obtained from the office of Consulting Engineers Rust Asia Pacific, third floor, Devon House, 979 King's Road, Quarry Bay.

The tender closing date is noon on April 21.

End/Friday, March 24, 1995

16

Pre-qualification invited for seawall project at Tseung Kwan O

*****

The Civil Engineering Department is inviting approved contractors to participate in a pre-qualification exercise for the construction of seawall and reclamation for the Tseung Kwan O Port Development Stage I at Area 137, Tsueng Kwan O.

The works comprise mainly the construction of 3,500 metres of seawalls and associated drainage outfalls, and reclamation of about 57 hectares of land.

> 5

Construction is expected to commence in October for completion in about 27 months.

The works have been designed and construction will be supervised by Development and Airport Division, Civil Engineering Office, Civil Engineering Department.

Only contractors on the Approved Contractors for Public Works List I Group C for port works (confirmed) or on the List II for port works (confirmed) can apply for pre-qualification.

Interested parties may apply for pre-qualification documents from Chief Engineer, Development and Airport, Civil Engineering Department, second floor, Civil Engineering Building, 101 Princess Margaret Road, Ho Man Tin, Kowloon.

The deadline for submission of application is noon on April 18, and tenders will be invited from the pre-qualified contractors in July.

End/Friday, March 24, 1995

17

Minibuses to take on new colour scheme

*****

A new colour scheme will be implemented for red and green minibuses from April 1 to extend the advertising space on the vehicles, a spokesman for the Transport Department said today (Friday).

The roof panel and all parts above the window will be painted green for green minibuses, and red for red minibuses.

The bodies of all minibuses will be painted yellow, the spokesman said.

The vehicles may carry advertisements with prior approval from the Transport Department, he added.

"The new colour scheme will have a one-year transition period to enable minibus owners to meet the new requirement.

"Within the transition period, vehicles that do not comply with the new scheme will be tolerated until they are brought to the Transport Department for annual examination."

The spokesman reminded the owners whose minibuses are scheduled for annual examination in early April to make urgent arrangements to have their vehicles painted in accordance with the new colour scheme before they are presented to the department.

End/Friday, March 24, 1995

18

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,632 0930 -21

Closing balance in the account 2,111 1000 -21

Change attributable to : 1100 +5

Money market activity -4 1200 +6

LAF today -517 1500 +6

1600 -4

LAF rate 4.25% bid/6.25% offer TWI 118.0 *+0.1* 24.3.95 i 15 *

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.92 14 months 2605 6.35 100.18 6.27

1 month 5.12 23 months 2702 7.50 101.50 6.76

3 months 5.51 28 months 3707 6.95 100.31 6.91

6 months 5.76 34 months 3801 8.00 102.45 7.15

12 months 6.17 60 months 5003 7.75 100.85 7.68

Total turnover of bills and bonds - $10,055 million

Closed March 24, 1995

End/Friday, March 24, 1995

DAILY INFORMATION BULLETIN

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

Saturday, March 25,1995

Contents Page No,

CFA before 1997......................................................... 1

Transcript of the Governor’s media session.............................. 1

Consultants appointed to study mandatory provident fund system......... 3

CS extends condolence to fire victims................................... 4

Transcript of the CS.................................................... 5

Medical care for the elderly poses challenges to health administration. 6

SHA visits victims of Tsuen Wan fire.................................... 7

Employment agencies warned against unlicensed operation................. 7

Four lots of land up for auction........................................ 8

24-hour automated telephone enquiry service on rating matters........... 9

Drug abuse solves no problem........................................... 10

Fresh water cut in Wong Chuk Hang...................................... 10

HK to take part in UN Women Conference................................. 11

Hong Kong Monetary Authority money market operations................... 11

1

CFA before 1997

* ♦ ♦ ♦ ♦

The Government will do its best to try to ensure that the Court of Final Appeal would be set up before 1997, the Governor, the Rt Hon Christopher Patten, said today (Saturday).

Speaking to reporters after officiating at the congregation of the Hong Kong College of Cardiology, the Governor said the Government’s position was that it wanted to get on with setting up the Court as rapidly as possible.

’’The only guarantee I am giving the people of Hong Kong is that we will do our best to implement the 1991 agreement," he said.

"We want to have the co-operation that was promised in 1991.

"We think it’s an issue on which people want us to roll our sleeves up and get on with the job of building the foundations for the rule of law here in Hong Kong."

End/Saturday, March 25, 1995

Transcript of the Governor's media session ♦ ♦ * ♦ ♦

The following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after officiating at the first congregation of the Hong Kong College of Cardiology this (Saturday) morning:

Question: Director Lu this morning said the British side has to take up the responsibility for the delay of setting up CFA in Hong Kong. What is your reaction?

Governor: I haven’t seen a detailed report of Director Lu’s remarks. So I don’t think it’s reasonable to comment on it. Let me say a word in general about the CFA. Chinese officials and PWC members have spent the last week in the Ui ited States reassuring American audiences and through American audiences reassuring Hong Kong about their commitment to the rule of law, and as part of that commitment, their determination to live by the 1991 agreement. So we're puzzled about the delays and the problems on the Chinese side. The agreement was reached in 1991. Why suddenly problems being raised now? A draft bill was given to the Chinese side last May, not last week or last month, but last May. And there were a few technical amendments given to them in January, but nothing immensely substantial. So we remain absolutely committed to the 1991 agreement. Chinese side always tell us that they remain committed to agreements as well, and they tell us that they're committed to the rule of law in Hong Kong. So I very much hope we can make rapid progress. We should be able to, what's the problem?

2

Question: But they said that they want to have some guarantee that the British side will not go to table the bill to the Legislative Council before...

Governor: I tell you what we will guarantee - that we will do our best to implement the 1991 agreement, that we will do our best, we can’t do more, but shouldn’t do less, we will do our best to try to ensure that there is a court set up before 1997. Now Chinese officials say that they’re committed to doing that. So I think there are a lot of people in Hong Kong who scratch their heads and say: ‘So what's the problem?’ Let me ask one simple question: the Chinese side have had the draft bill since last May, is there any way, is there any detail in which that bill doesn’t comply exactly, precisely to the letter and to the spirit with the 1991 agreement? If there is any difference between that bill and the 1991 agreement, let them say precisely and in terms what it is. We don't want in the Hong Kong Government an argument about this. We don't think that this is the sort of issue about which Hong Kong people want us to argue. We think it's an issue on which people want us to roll our sleeves up and get on with the job of building the foundations for the rule of law here in Hong Kong. So we don't want an argument. We want to have the co-operation that was promised in 1991. Any other questions?

Question: Is that, 1 mean, the Hong Kong Government still sticks the original programme that we want the legislation pass through the Legislative Council in this session?

Governor: The Hong Kong Government's position is that we want to get on with setting up the Court as rapidly as possible and you know the implications for our timetable. And that's been our position I have to say all along. It hasn't been the Hong Kong Government which has been sitting down and relaxing since the bill was handed to the Chinese side last May. Any question on anything else?

Question: Can you tell us exactly are you going to table the bill in April?

Governor: We're going to make sure that we do everything possible to set up the Court before 1997 and if you think that I am going to tell you exactly what all our timetable particulars are, then you haven't been following me round at the press conferences very often. Any other questions on anything else?

Question: Do you guarantee that you will not table the bill in LegCo ...

Governor: I said do you want any questions on anything else, and the only guarantee I am giving the people of Hong Kong is that we will do our best to implement the 1991 agreement, and the real question which you should be asking is whether the Chinese side will do their best to set up the Court before 1997 and to implement that agreement. What we can’t have is a huge gulf opening up between the assurances people give about the rule of law and what they’re actually prepared to do about the rule of law. So I think what we all want, should want on both sides, I don’t seek to make it a matter of argument, what we should all want is action, not words. Any questions on anything else? No? Thank you very much indeed.

3

Question: What is the minimal time to ....

Governor: Honestly, I’m as good as my word. Do you want a question on anything else or not?

Question: You mean other than CFA?

Governor: I have said everything I want to say on the CFA. Do you want a question on anything else? Thank you very much. Question: How about the airport? Is there any agreement to be made during these few days?

Governor: Director Lu said in the United States that we could expect agreement on the FSAs within days. So I think everyone in Hong Kong is looking to the Chinese side here in Hong Kong to make sure that happens. It's not for me to say what the Chinese side's position is on it. But Director Lu has made that pledge and I hope that Chinese officials here will live up to it. Okay?

Question: So everything will be ready after the JLG meeting in April?

Governor: Well, I only hear what you hear, and I have heard the pledge, the promise given in America, and I assume that wasn’t just for American audiences. We have things like agency tapes and television and telephones, so that message came back to Hong Kong, and a lot of people in Hong Kong threw their hats in the air, and said: 'Terrible, we can put that argument behind the stand.' All I am saying is we haven't given that commitment, but it's been given, and I very much hope that Chinese officials here will be able to live up to it now. Okay? Thanks very much indeed. Thanks for being so patient.

End/ Saturday, March 25, 1995

Consultants appointed to study mandatory provident fund system *****

The Secretary for Financial Services, Mr Michael Cartland, announced today (Saturday) the appointment of Hewitt Associates, in conjunction with GML Consulting Limited, to conduct a consultancy on the establishment of a mandatory provident fund system in Hong Kong.

The objective of the study is to advise and make recommendations to the Government on the details of the system.

4

It will cover the administrative and regulatory aspects as well as provisions for preservation and portability and convergence with voluntary retirement schemes registered under the Occupational Retirement Schemes Ordinance and other statutory schemes.

Hewitt Associates is one of the largest international firms specialising in the design, financing, communication and administration of retirement programmes, and providing services to national governments and private sector clients. It is formally represented by GML Consulting Limited in Hong Kong.

GML Consulting Limited is a Hong Kong-based management consultancy firm. Its team of consultants has been involved in the design, administration and supervision of retirement schemes since 1982.

The consulting team, comprising eight consultants in Hong Kong and others in Hewitt's international offices, will start work immediately and their interim report is expected by early next month.

A final report will be submitted to the Financial Services Branch on April 18.

"Upon receipt of the consultant's final report, we will consider the recommendations and finalise our proposals on the contents of a mandatory provident fund system," Mr Cartland said.

"Meanwhile, drafting of the relevant legislation is being put in hand, with a view to submitting primary legislation for the setting of a mandatory provident fund system before the end of the current legislative session," he added.

End/Saturday, March 25, 1995

CS extends condolence to fire victims *****

The Chief Secretary, Mrs Anson Chan, today (Saturday) extended her deepest condolence to the victims of the bedspace apartment fire in Tsuen Wan early this (Saturday) morning and hoped that those injured would make a speedy recovery.

Speaking to reporters after officiating at the 75th anniversary celebration of the Hong Kong Y.W.C.A., Mrs Chan said the Government would certainly spare no efforts to make the lives of those who were temporarily accommodated in the Princess Alexandra Community Centre as comfortable as possible.

5

"We will as soon as possible examine the affected structure to see whether it is safe for the residents to go back," she noted.

"If in the longer run, they can not go back to their own apartment, then we will certainly offer alternative accommodation elsewhere."

End/ Saturday, March 25, 1995

Transcript of the CS *****

The following is the transcript of the media session by the Chief Secretary, Mrs Anson Chan, after officiating at the 75th anniversary thanksgiving ceremony of the Hong Kong Y.W.C.A. this (Saturday) afternoon.

CS: Good afternoon everyone. I want to say a few words about the arson incident at the bedspace apartments. Can 1 first of all say that 1 was very, very sorry to hear about this incident and, in particular, to hear that three people had died and three were injured. To those who died, 1 extend my deepest condolence and to those who were injured, I hope they will make a speedy recovery. As we know, we'vf moved very fast to provide temporary accommodation for those affected in the Princess Alexandra Community Centre. The Secretary for Home Affairs has been out to visit the victims and he's briefed me fully on the situation and on the help that we're extending. We will certainly spare no efforts to make the lives of those who are temporarily accommodated in the community centre as comfortable as possible. We will as soon as possible examine the affected structure to see whether it is safe for the residents to go back. But clearly, there will have to be some repairs. In the meantime, we will accommodate them at the community centre. If in the longer run, they can not go back to their own apartment, then we will certainly offer alternative accommodation elsewhere. On the general front of bedspace apartments, as you know, we have a registration programme in force now. We will move as quickly as possible. We'd already registered 150 of these apartments and the whole purpose behind the registration system is to ensure that we can lift the standard, both the safety standard and the sanitary standard to an acceptable level, so that we can provide a better standard of accommodation for those affected.

Question: Mrs Chan, how do you react to Chinese vessel illegally entered the Hong Kong waters?

CS: We have expressed our concern to the Chinese authorities via the NCNA. I am glad to know that in fact the number of such incursions have in fact decreased quite appreciably. I believe that in 1993, we had 15 such incidents. Last year, we only had seven and so far this year, wc only had one. But clearly, we are concerned and we've drawn the Chinese authorities' attention to this concern.

6

Question: Mrs Chan, how do you look at the visit of Mr Robert Peirce to the States, is it a deliberate....

CS: Mr Peirce's visit was in fact arranged some time ago. It's a pure coincidence that he happened to be in the States at the same time as Mr Lu Ping. 1 wouldn’t read anything into it.

End/Saturday, March 25, 1995

Medical care for the elderly poses challenges to health administration

*****

Managing medical care for the elderly will become an ever greater challenge for public health administration, and cardiological care will be a huge component within that, the Governor, the Rt Hon Christopher Patten, said today (Saturday).

Officiating at the first congregation of the 1 long Kong College of Cardiology, the Governor said heart disease was already one of the three major killer diseases, second only to malignant neoplasms.

Over 15 per cent of all deaths are from cardiovascular ailments. The disease strikes most commonly against the elderly. Eighty per cent of those who die are over 65.

Mr Patten said: "There is not just the threat to the individual, but the growing burden of cost to the whole community if our response to this swelling problem concentrates upon treatment, and neglects prevention.

"But since so much cardiovascular disease is the consequence of poor diet, inadequate exercise and unmanaged stress, there is a huge potential gain to the community if we can educate them in the dangers of heart disease, and if we can educate and encourage them to adopt the simple changes of habit that will help to guard against it," he added.

The Governor said he was encouraged by the amount of work the College had done in setting up registries, research projects, training programmes and its progress on public education programmes.

End/Saturday, March 25. 1995

7

SHA visits victims of Tsuen Wan fire

*****

The Government will do its best to make temporary accommodation arrangements for the bedspace apartment lodgers affected by the Yeung Uk Road fire, the Secretary for Home Affairs, Mr Michael Suen said today (Saturday).

Speaking to the media after visiting the lodgers at the Princess Alexandra Community Centre, Mr Suen said the Government would assist with lodgers' rehousing and the arrangements would depend on the results of the survey by the Buildings Department regarding the conditions of the premises.

He pointed out that Police had classified the case as homicide, arson and wounding, and the circumstances surrounding this unfortunate incident might be different from other incidents of fire .

Nevertheless, he said, the Government has been very concerned about the fire and building safety as well as sanitation standards of bedspace apartments and legislation was enacted last year to provide for a licensing scheme to regulate such premises.

Mr Suen noted that 150 known bedspacc apartments had been registered for temporary licences and staff of the licensing authority had conducted initial inspections to work out the improvement measures required to meet the standard in the law. Fire prevention leaflets have also been distributed to residents during these visits.

He stressed that there was a tight programme of implementation for the licensing scheme and follow-up work would proceed vigorously.

Mr Suen and the Director of Home Affairs. Mr Joseph W. P. Wong later went to the scene of the blaze to see for themselves the conditions of the building.

End/Saturday. March 25. 1995

Employment agencies warned against unlicensed operation

*****

Employment agencies should not operate without a licence, neither should they overcharge job applicants upon successful placement.

"Employment agencies 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).

8

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

office.

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

She also reminded employment agency operators not to charge a job-seeker more than 10 per cent of his first month's salary as commission upon successful placement.

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

Any person who operates an unlicensed employment agency or overcharges a job-seeker violates the Employment Agency Regulations. The maximum fine for each offence is $25,000.

For enquiries on the operation of an employment agency, please contact the Employment Agencies Administration, Labour Department, on 2852 3535 or 2852 3540.

End/Saturday, March 25, 1995

Four lots of land up for auction

*****

The Lands Department will auction four lots of land in Kowloon and the New Territories next Monday (March 27).

The public auction will begin at 2.30 pm in the Concert Hall of Hong Kong Cultural Centre, Tsim Sha Tsui.

The first, located in Chung Hau Street, Ho Man Tin, has an area of 3,380 square metres for private residential use.

Covering an area of 2,155 square metres in Town Park Road, Yuen Long, the second lot is also for residential use.

The third lot, located in Area 100, Ma On Shan, has an area of 10,306 square metres for non-industrial use.

9

Having an area of 5,970 square metres, the remaining lot is situated in Area 37C, Tseung Kwan O, Sai Kung, for non-industrial purpose.

Attention News Editors:

Your representatives are invited to cover the auction.

A press area will be designated. Photographers are advised to bring along telephoto lenses.

End/Saturday, March 25, 1995

24-hour automated telephone enquiry service on rating matters * * * * *

As part of its efforts to better serve the community, the Rating and Valuation Department will introduce a 24-hour automated telephone enquiry service on Monday (March 27).

This service provides recorded information on rating and landlord and tenant matters. The service also provides callers with the option to obtain information and property market statistics by fax.

A spokesman for the department said callers would be able to obtain information they required quickly and easily, even outside office hours. If a caller has a specific query, he can still use the system, which provides access to a duty officer, during office hours.

Access to this service is by tone-dial telephone, and the number is 2881 1033.

A leaflet introducing this service incorporates a simple user guide, and copies are available, free of charge, from the department's office or at District Offices.

Any queries about this service may be directed to the department on tel 2805 7666 during office hours.

End/Saturday, March 25, 1995

10

Drug abuse solves no problem

Drug abuse would hold no attraction if everyone adopted a positive outlook on life, the Commissioner for Narcotics, Mr Alasdair Sinclair, said today (Saturday).

Officiating at an anti-drug carnival organised by the Finnish Missionary Society at Tai Po, Mr Sinclair urged the participants to make good use of their life.

He accepted one could not control the family or society one was bom into or whether one was gifted or not.

However, he said: " Whatever our circumstances, we can choose whether to make the most of our potential."

The Commissioner warned that problems could not be overcome by taking refuge in drugs.

"Whatever the temptations, however hopeless our life appears, drug abuse will only make things worse.

"When we have troubles, we should face up to them and set out to make things better," he said.

Mr Sinclair said this required a positive attitude towards life.

It required looking outward , he said, adding that smoking and drug-taking would only damage our bodies and diminish our potential.

"Instead of despairing at unhappy circumstances which we cannot control, let us try to change the things we can control," the Commissioner said.

End\Saturday, March 25, 1995

Fresh water cut in Wong Chuk Hang *****

Fresh water supply to some premises in Wong Chuk Hang will be temporarily suspended from 11 pm on Monday (March 27) to 6 am the following day to facilitate water mains leakage detection.

The suspension will affect all the premises at 1-65 Wong Chuk Hang Road, Yip Kan Street and Tong Bin Lane.

End/Saturday, March 25, 1995

11

HK to take part in UN Women Conference *****

Hong Kong will join many countries and regions to take part in the Women Conference held by the United Nations in Beijing this September, the Chief Secretary, Mrs Anson Chan, said today (Saturday).

Speaking at the YWCA's 75th Anniversary Thanksgiving Ceremony, she noted that the association had stepped up educational work among women and organised a number of activities to support the world forum.

Through its activities and courses given, she said, women from all walks of life could achieve a thorough development, both physically and psychologically.

Learning helped them to build up their self-confidence, develop their potential and at the same time, gave them a chance to serve the community, she added.

End/Saturday, March 25. 1995

I long Kong Monetary Authority money market operations ♦ * * ♦ ♦

$ Million Time (1 lours) Cumulative Change ($ Million)

Opening Balance in the account 2,111 09:30 +25

Closing Balance in the account 1,333 10:00 +25

Change Attributable to: 11:00 +25

Money Market Activity +25 11:30 +25

Laf Today -803 15:00

Laf Rate 4.25% Bid/6.25% Offer TWI 118.1 *+0.1*25.3.95

End/Saturday, March 25, 1995

DAILY INFORMATION BULLETIN

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

Sunday, March 26,1995

Contents Page No*

Kwai Tsing District Board by-election forum....................... 1

Saturday clinic sessions for teachers............................. 1

Fund-raising schedule for April................................... 2

Lady Youde presents awards to 850 students........................ 4

Divorce Registry to be closed on Saturday......................... 8

Kowloon Walled City Park taking shape............................. 8

Public urged to plant trees and protect countryside............... 9

1

Kwai Tsing District Board by-election forum

*****

Residents are invited to attend a district board by-election forum for the Lai Wah constituency in Kwai Tsing district on Tuesday (March 28). 1 ■


The forum will enable voters to get to know the platforms of the two contesting candidates - Mr Wong Yiu-chung and Mr Lau San- ching.

The forum will start at 8.30 pm at the TWGH Ko Ho Ning Memorial Primary School, Lai Yiu Estate.

Attention News Editors:

Your representatives are invited to cover the forum.

End/Sunday, March 26, 1995

Saturday clinic sessions for teachers

*****

Teachers are encouraged to make full use of the Education Department's "Saturday Clinic Sessions" to improve communication with the department.

A spokesman for the department said the sessions were aimed at improving the channel of communication between school staff and the department and providing teachers with an easy access for consultation with area staff of the department.

Through the sessions, teachers can also discuss with the staff of District Education Offices any professional or personal matters they are concerned about.

2

"The clinic system has been in operation for years and the general feedback is that it has offered a useful channel for teachers to air grievances, seek advice and bridge any communication gaps that may exist," the spokesman said.

"We are confident that the sessions will continue to bring about better communication and understanding between teachers and the department," he said.

End/Sunday, March 26, 1995

Fund-raising schedule for April * * * * *

Ten organisations have been granted permission to raise funds next month (April), a spokesman for the Social Welfare Department said today (Sunday).

They will either sell flags, tokens or similar items, or place donation boxes in designated public places.

"Members of the public can call the Department's hotline 2343 2255 or the Hong Kong Council of Social Service at 2866 8123 in case of doubt.

"Any organisation planning to hold activities involving collection of money or sale or exchange for donation of badges, tokens or similar articles in a public place for charitable purposes should apply for a public subscription permit from the Social Welfare Department," the spokesman said.

The spokesman appealed to organisers to take precautions against any possible fraud.

"Sellers should display the permit or carry copies of the permit for inspection upon request if the fund-raising is mobile," he said.

3

The spokesman also advised them to prepare guidelines for sellers, setting out the places and the times for selling and the collection points for bags.

"Organisers should inform the Police in case of loss of property, and seek their help when fraudulent acts, such as tampering of collection bags or making unauthorised selling, are found," he added.

Permits are given to the following organisations for raising funds next month:

Flag Day

Event Date Organisation

April 1 Alice Ho Miu Ling Nethersole Hospital f

April 8 Baptist Oi Kwan Social Service jq-.

April 15 Green Power

April 22 Christian Family Service Centre

April 29 Kwun Tong Methodist Centre

Public Subscription

Event Day Organisation

April 1 & 29 Land of Virtue Centre Ltd. ‘ *’J J ■ , :•

April 2, 9, 16, 23&30 Jesus is Lord School of Ministry (HK) Ltd.

April 4 Hong Kong Aids Foundation Ltd.

April 14-21 Artiste Training Alumni Association Charitable Fund ■

April 23 & 30 Hong Kong Church of Christ

End/Sunday, March 26, 1995

4

Lady Youde presents awards to 850 students *****

The following is issued on behalf of the Sir Edward Youde Memorial Fund Council:

Lady Youde today (Sunday) presented awards to 850 students who were granted awards and scholarships under the Sir Edward Youde Memorial Fund.

Chairman of the Board of Trustees, Sir Piers Jacobs, and Chairman of the Council, Mr Ronald Arculli, also officiated at the Ceremony in City Hall.

"I should like to congratulate everyone who has received an award this afternoon," Lady Youde said.

"The very high standard of academic achievement and leadership qualities is most impressive.

"I am sure you will all continue to excel in your studies and maintain a keen interest in the affairs of the community, and that when you are successful in your chosen careers, you will recall with gratitude the help of your parents and teachers."

In pursuing the very objective of the Fund, which is to encourage and promote education and learning of the young people of Hong Kong, the Fund has disbursed a total of $9.4 million in the 1994-95 academic year.

These include 12 awards for overseas studies; three medals for students who have obtained outstanding results in public examinations; 10 awards for disabled students; 77 scholarships for diploma and undergraduate students; 46 fellowships for post-graduate students and 698 prizes for senior secondary school students.

Exclusive sponsorship in the amount of $600,000 towards the Young Friends of the Hong Kong Arts Festival Scheme has continued in 1994-95, the aim being to increase secondary school students' exposure to and knowledge of the performing arts.

- 5 -

Competition for the overseas fellowships and scholarships for 1995-96 is extremely keen. . '

Thirteen brilliant students, from among 293 applicants, have won the awards. , . . . .. ’ .• • ' ‘

. lb

They will receive a maximum of $208,000 a year for a fellowship award or a maximum of $190,000 for a scholarship award.

These students will have to return to work in Hong Kong for at least three years after completion of their studies.

The award recipients for the six Overseas Fellowships 1995-96 are:

* Mr Chan Ka-lok, 27, currently a lecturer of Warsaw University, Poland; plans to pursue a doctorate in Politics at the University of Oxford, UK.

* Mr than Tat-keung, 24, a first class honours graduate in Information Engineering and currently a master degree student in Philosophy of the Chinese University of Hong Kong; intends to pursue a doctorate in Electrical Engineering at the University of California, Berkeley, USA.

* Miss Leung Bo-yee, Nancy, 23, a graduate in LLB of the University of Hong Kong; intends to pursue a LLM at the University of Cambridge, UK.

!.. • ■ I

‘J. •’

* Mr Tang Tin-hong, Alexander, 27, now works as an associate dentist of a community health centre; intends to pursue a Master of Science and Membership in Orthodontics at the University of London, UK.

ri ।

* Miss Yeung Yang, 25, currently a reporter of TVB (Pearl); plans to pursue a doctorate in Anthropology at the Yale University, USA.

• • < * . »• r. i * r *" r* • .

♦ Miss Yip Choi-fung, 29, currently an undergraduate student in Fine Arts at the Hong Kong Academy for Performing Arts; plans to read a Master degree in the same field at Sarah Lawrence College, New York. 8

The seven Overseas Scholarships winners are:

6

* Miss Chan Yee-shan, Hilda, 19, of Sacred Heart Canossian College, who scored nine distinctions in the Hong Kong Certificate of Education Examination (HKCEE) in 1993. She plans to study Architecture and Surveying at Cornell University, USA.

* Mr Chi Yuk-lun, Alwin, 18, of Queen's College who obtained 10 distinctions in HKCEE in 1994. He plans to study Business at Stanford University, USA.

* Mr Ho Lai-man, Raymond, 17, of Wah Yan College, who obtained 10 distinctions in HKCEE in 1994. He plans to study Economics at MIT, USA.

* Mr Bernard Man, 19, of Diocesan Boys' School who obtained nine distinctions and one credit in HKCEE in 1993. He plans to study Law at the University of Cambridge, UK.

* Mr Ng Chi-keung, Kenneth, 17, of Wah Yan College, who obtained 10 distinctions in HKCEE in 1994. He plans to study Civil Engineering at MIT, USA.

* Mr Ng Ting-fai, 17, of St. Paul's Co-educational College, who obtained nine distinctions in HKCEE in 1994. He plans to read Computer Science at MIT, USA.

* Mr Tsui Siu-kay, Gordon, 19, of Queen's College, who obtained nine distinctions and one credit in HKCEE 1993. He plans to read Economics at the London School of Economics and Political Science, University of London, UK.

An overseas scholarship/fellowship exclusively for disabled students was introduced in 1994.

The 1995-96 award recipient is Mr Tse Siu-lam, Bowie, 27, a physically-handicapped graduate who plans to study MBA at Baylor University, USA.

Three students who obtained outstanding results in the 1994 public examinations have been awarded the Sir Edward Youde Memorial Medals.

They are:

7

* Mr Chi Yuk-lun, Alwin, of Queen's College who scored 10 distinctions in HKCEE in 1994. (He is also one of the winners of the Sir Edward Youde Memorial Scholarships for Overseas Studies 1995-96.)

* Mr Woo Shan-ming of Sing Yin Secondary School who scored five distinctions in the 1994 Hong Kong Advanced Level Examination (Science Stream). (He was also one of the winners of the Sir Edward Youde Memorial Scholarships for Overseas Studies 1994-95 and is now pursuing a B.A. degree in Computer Science at the University of Cambridge.)

* Miss Choi Mui-fun of Heep Yunn School who scored six distinctions in the 1994 Hong Kong Advanced Level Examination (Arts Stream).

A total of $190,900 has been expended on the Award Scheme for the Disabled Students, under which 10 students have been provided with financial assistance for the purchase of study aids.

This year also sees 30 postgraduate students being awarded the Local SEYM fellowships, at $35,000 each and 77 undergraduate and diploma students awarded the local scholarships at $20,000 each. In addition, 14 postgraduate students have their Local SEYM fellowships renewed, at $35,000 each.

The Sir Edward Youde Memorial Fund has since its inception supported more than 5,500 Hong Kong students under its major awards schemes.

More than 455 scholars and fellows have completed their studies and are now working in Hong Kong in different fields, contributing to the well- being and development of the territory.

End/Sunday, March 26, 1995

8

Divorce Registry to be closed on Saturday

*****

The following is issued on behalf of the Judiciary:

The Divorce Registry and offices of the Family Court will be closed this Saturday (April 1) to make way for office removal.

The Divorce Registry and offices of the Family Court, currently situated in the Wan Chai Law Courts, Wan Chai Tower will be relocated to the Supreme Court Building at 38 Queensway.

The Divorce Registry, which will be renamed the Family Court Registry, will be located on LG3 of the Supreme Court Building while the family courts will be on the 14th floor.

From April 3 (Monday), members of the public wishing to visit the Registry and offices of the Family Court should go to the Supreme Court Building in Queensway.

End/Sunday, March 26, 1995

Kowloon Walled City Park taking shape

* * * * *

The Kowloon Walled City Park, a future landmark of Central Kowloon, is taking shape with 60 per cent of construction work completed.

Designed by the Architectural Services Department, the park will be Hong Kong's first authentic Chinese garden capturing the essence and style of the gardens commonly found in southern China in the early Qing dynasty.

Specialist contractors from China are now busy putting the finishing touches to the pavilions, winding galleries, rockeries, landscaping and water features.

9

Colourful stone pavings, stones inscribed with poetry as well as wood and bamboo carvings are also being put in place in the park.

Meanwhile, two of the six rock features to be shipped for the first time from Changxing via Shanghai to Hong Kong have arrived and are being placed at strategic locations in the park.

Four of them will be dedicated to five missionaries who have worked in the former Kowloon Walled City for the well-being of the residents. They include Rev Kwong Yat-sau, Rev Lau Chi-san, Ms Jackie Pullinger, and Jean and Rick Willans.

Owing to the educational value of the planning and architectural design of the Chinese garden, many guided tours have already been conducted for various groups of academics, students and interested parties from both local and overseas.

Upon its completion around October, the 3.1-hectare park will enhance the amenities provided for the public, especially Kowloon Central residents.

/■ •

It will also become a major tourist attraction with many of the relics of the Kowloon Walled City, such as Yamen, the footing of the original wall, granite paths, entrance gates, old wells, stone tablets and column bases, having been restored.

End/Sunday, March 26, 1995

Public urged to plant trees and protect countryside * * * * *

The Secretary for Planning, Environment and Lands, Mr Tony Eason, today (Sunday) called on members of the public to come forward and plant more trees in the country parks in the coming months.

Mr Eason made the appeal when addressing the launching ceremony of this year's "Community Tree Planting Scheme" at Pak Tam Au, Sai Kung Country Park.

10

He urged members of the community to show support for countryside conservation both by planting trees and taking every precaution to protect the countryside from hill fires.

Noting that the Agriculture and Fisheries Department (AFD) had produced some 800,000 tree seedlings each year for planting in country parks and for use in various Government landscaping projects, Mr Eason stressed that it would be really sad if any of these trees turned out to be damaged by hill fires or vandalism.

"It is everyone's civic responsibility to care for and help conserve our countryside.

"Involvement in tree planting helps people to see and understand more about our countryside environment and reminds us of our obligations to keep it clean, green and healthy," he said.

On the Community Tree Planting Scheme, Mr Eason said it had become a very popular annual event receiving great support from all sectors of the community.

He took the opportunity to thank the Lions Clubs International District 303 and Television Broadcasts Limited (TVB) for co-organising this year's scheme and offering publicity support respectively.

Also speaking at the launching ceremony, AFD's Director Dr Lawrence Lee said the scheme, started in 1957, was one of the major conservation education programmes conducted by his department every year.

Last year, more than 26,000 participants took part in the scheme, planting some 34,000 trees.

Dr Lee said that following the launching ceremony, four planting sites in selected country parks would be opened on Sundays and public holidays this month and in April for tree planting by the public.

The four planting sites are at Nam Shan on Lantau, Tai Mo Shan, Tai Mei Tuk and Quarry Bay.

11

"Country park staff will be on duty during the period to provide tree seedlings, planting tools and technical advice.

"For interested schools and organisations, they are welcome to contact AFD's Conservation Education Unit on 27332121 so that separate arrangements could be made for them to plant trees in eight other designated sites in April and May," He said.

Arrangements have already been made with the Lions Clubs, Rotary Clubs, Community Chest, Conservancy Association, Friends of the Earth and many other organisations to support this meaningful purpose, Dr Lee added.

Also attending this morning's launching ceremony were the Lions Clubs' District Governor, Mr William Leung; General Manager of TVB, Mr Alex Ying; Chairman of Country Parks Board's Planning and Management Committee, Dr Jim Chi-yung and winners of last year's Miss Hong Kong Beauty Pageant.

End/Sunday, March 26, 1995

DAILY INFORMATION BULLETIN

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

Monday, March 27,1995

Contents Pnge.No-

Four lots sold for $3,370 million.............................. 1

Fifth ACC sub-committee holds its first meeting...................... 2

HAD helps Tsuen Wan fire victims............................... 5

Governor's anti-drugs visit.......................................... 6

LB AC discusses consent scheme....................................... 7

Social security payments increase in April..................... 8

Contract awarded for Lantau toll plaza roadworks............... 11

Provisional statistics of restaurant receipts and purchases for the 12

fourth quarter and the year of 1994...........................

Restaurant workers registered as electors...................... 15

"Respect Our Teachers" campaign to be launched next Monday..... 16

Temporary study rooms.......................................... 17

Archaeological site at Tung Chung yields significant finds..... 18

Water storage figure........................................... 19

Hong Kong Monetary Authority money market operations........... 20

1

Four lots sold for $3,370 million * * * * ♦

Four lots of Government land were sold for a total of $3,370 million at a public land auction held by the Lands Department this (Monday) afternoon.

The first lot situated in Area 37C, Tseung kwan O, Sai Kung, was bought by Great Land (Hong Kong) Limited at $1,060 million, with bidding opening at $980 million.

The lot has an area of 5,970 square metres for non-industrial purpose, excluding office and godown. The two floors immediately above the foundations shall be used for non-industrial purposes, excluding residential, godown and office, while the remaining floors shall be for private residential use.

The developer has to complete a gross floor area of not less than 29,164 square metres on or before March 31,1999.

The second lot, located in Area 100, Ma On Shan, Sha Tin, was sold to Lead Talent Investment Limited at $1,320 million, with bidding opening at $1,000 million.

The lot has an area of 10,306 square metres and is intended for non-industrial use, excluding godown, service apartments and petrol filling station, but including hotel.

The developer has to complete a gross floor area of not less than 30,920 square metres on or before September 30, 1999. If the lot or part of it is to be developed for hotel purposes, the building convenant date will be extended to March 31, 2000. The third lot at Chung Hau Street, Ho Man Tin, was sold to Macwan Limited at $920 million, with bidding opening at $800 million.

It has an area of 3,380 square metres for private residential use.

The developer has to complete a gross floor area of not less than 15,210 square metres on or before March 31, 1998.

2

The remaining lot in Town Park Road, Yuen Long, was bought by Everlane Investment Limited at $70 million, with bidding opening at the same price.

With an area of 2,155 square metres, the lot is also designated for private residential use.

The developer has to complete a gross floor area of not less than 3,879 square metres on or before March 31, 1998.

The auction, held in the Concert Hall of the Hong Kong Cultural Centre, Tsim Sha Tsui, was conducted by Government Land Agent, Mr Roger Harding.

End/Monday, March 27, 1995

Fifth ACC sub-committee holds its first meeting *****

The new Sub-committee on Works Progress and Cost Monitoring of the Airport Consultative Committee (ACC) held its first meeting this (Monday) afternoon.

Dr Wong Po-yan was elected the sub-committee's Convenor and Mr Kan Fook-yee the Deputy Convenor.

Speaking after the meeting, the Director of the New Airport Projects Coordination Office, Mr Billy Lam, said the new sub-committee would provide a valuable forum for ACC members to be consulted on matters related to the cost and progress of the Airport Core Programme (ACP).

"I am sure that the new sub-committee, with a total of 33 members coming from a wide cross- section of the community, will provide us with invaluable advice on the new airport and related projects.

"The new sub-committee will strengthen the role of the ACC in monitoring the cost and progress of the ACP in response to the requirements of the Agreed Minute signed last November," he said.

3

The Sub-committee on Works Progress and Cost Monitoring is the fifth sub-committee set up under the ACC. The Sub-committee's terms of reference are "to monitor and assess the overall works progress, cost, effectiveness and control of the ACP as a whole, to make recommendations to the main Consultative Committee for consideration".

At today's meeting, Mr Lam told members of the new sub-committee that a total of 112 ACP contracts amounting to $80.9 billion had been awarded so far.

"The Legislative Council has already approved 97 per cent of the funds for the government works, and all the $60.3 billion government funding for the airport and airport railway projects as envisaged in the Agreed Minute signed by the British and Chinese sides last November," he said.

The Controls Manager of NAPCO, Mr Jhan Schmitz, also briefed members today on the comprehensive integrated programme and project control approach and system which had been devised and implemented by NAPCO for the ACP.

Mr Schmitz said details of this approach and system, including control, administrative and reporting requirements, were contained in a set of procedures, standards and system which all works agents had to implement and adhere to under NAPCO's guidance.

He said: "The objectives of these ACP procedures are:

* to provide the basic management tools to help ensure completion of the approved ACP scope on time and within budget;

* to standardise the requirements and methods of project control and contract administration across the ACP, for consistent and integrated monitoring, control and reporting;

* to ensure an adequate level of visibility and control at all levels -programme, project and contract; and

* to support early identification and resolution of potential problem areas and changes before they become critical."

4

Following is a list of members of the Sub- Committee on Works Progress and Cost Monitoring:

Convenor Dr Wong Po-yan

Deputy Convenor • Members Mr Kan Fook-yee Mr Steven Chan Hung-kwan Dr Thomas Chan Man-hung Mrs Ena Chan Yuen Yin-hung Mr Chau How-chen Mr Cheng Hon-Kwan Mr Christopher Cheng Wai-chee Mr Anthony Cheung Bing-leung Mr Francis Cheung King-fung Mr Linus Cheung Wing-lam Mr Raymond Choy Wai-shek

i Mr David Chu Yu-lin Mr Fung Shiu-wing Dr Raymond Ho Chung-tai Mr Ho King-on Mr Hu Fa-kuang Mr Ambrose Lau Hon-chuen

Mr Lau Kong-wah Mr Dennis Lau Wing-kwong Mr Leung Kwong-cheong Mr David Morris Mr Heinz A Rust Dr Shao You-bao Mr Shiu Sin-por Dr Victor Sit Fung-shuen Mr M K Tan Dr Tsang Shu- ki Dr Laurie Wan Sek-luen Dr Wang Liang-huew Dr Owen Wong Hong-hin Dr Peter Wong King-keung Dr Geoffrey Yeh Meou-tsen

End/Monday, March 27, 1995

5

HAD helps Tsuen Wan fire victims *****

Bedspace apartment lodgers affected by the Yeung Uk Road fire can stay in the Alexandra Community Centre until alternative accommodation is provided, the Director of Home Affairs, Mr Joseph W P Wong, said today (Monday).

Speaking to media members after visiting the lodgers at the centre, Mr Wong said activities to be held at the venue by other organisations for the next few days had been cancelled.

He said the Home Affairs Department (HAD) would also offer temporary accommodation in its singleton hostels to the lodgers and that staff from the Tsuen Wan District Office were getting in touch with them to see if they needed any help.

Mr Wong said the department would offer cash assistance under the General Chinese Charities Fund to the lodgers who were in need of emergency relief.

In addition, arrangements have been made for the Yan Chai Hospital to provide them with financial relief.

On the conditions of the affected bedspace apartment, Mr Wong said surveyors of HAD's Licensing Authority would examine the structure carefully to see if it was safe for the lodgers to return.

"If the building is still safe and the operator wishes to continue his business, the Licensing Authority will advise him on the renovation works to ensure that the safety and sanitation standards are met.

"If the building is unsafe, HAD will co-ordinate with the Housing Department closely to work out long-term rehousing arrangements for the lodgers."

As regard the implementation of the bedspace apartment licensing scheme, Mr Wong reiterated that HAD would step up inspections of the 150 known apartments and specific improvement requirements would be issued to operators towards the end of this year.

End/Monday, March 27, 1995

6

Governor's anti-drugs visit

*****

The Governor, the Rt Hon Christopher Patten, will visit the Life Education Centre of the Life Education Activity Programme (LEAP) tomorrow (Tuesday) as part of a series of visits over the coming months to follow-up the anti-drugs summit chaired by the Governor earlier this month.

At the summit, the Governor announced a $30 million, 26-point package of measures to reinforce the Government's anti-drugs programme.

Mr Patten also called for a report in three months' time on the ideas put forward at the summit by representatives of the community aimed at tackling the problem of drug abuse among the young.

A spokesman tor the Governor said: "It is important to maintain the momentum established at the summit, where more than 250 people representing a wide cross-section of the community came together to look for ways to combat the growing menace of drug abuse among the young.

"The Governor was impressed by the commitment and determination displayed by the community representatives to address this worrying issue.

"Starting tomorrow, the Governor will begin a series of visits leading up to the next anti-drugs summit in 12 months' time to keep himself abreast of the community involvement in the fight against drug abuse, and to keep the public's attention focused on this issue."

Attention News Editors:

You are invited to cover the Governor's visit to the LEAP Centre at Kennedy School tomorrow.

A press coach will leave the CGO car park at 2.15 pm for the school at 16 Sha Wan Road, Sandy Bay and return to CGO around 4 pm.

Those making their own way there should arrive by 2.45 pm. They should note that parking facility will not be available inside the school.

End/Monday, March 27, 1995

7

LBAC discusses consent scheme *****

The Land and Building Advisory Committee (LBAC) today (Monday) discussed the Land Authority Consent Scheme.

Chaired by Mr Cheng Hon-kwan, the Committee was briefed that the new Consent Scheme was one of the measures recommended by the Task Force on Land Supply and Property Prices in June 1994 to dampen speculation in the residential property market.

Members were briefed that since June 1994, a total of 17 presale consents for residential developments subject to the new measures, involving 6,906 units, have been issued.

These measures included that consent to forward sales should not be given more than nine months before the completion date estimated by the authorised person and specified in the sales and purchase agreement.

For private sales, the quota should be reduced to 10% and private purchasers were required to pay a 10% deposit before the date of the public sale and to sign the formal sale and purchase agreement within 7 days.

Members were informed by the Secretary for Planning, Environment and Lands and the Secretary for Housing that the Administration would continue to monitor the property market situation closely but for the time being, the Administration did not intend to impose additional measures to dampen speculation.

The Committee was also briefed on the Report on the Property Market for the period 1 July to 31 December 1994 prepared by the Lands Department.

In contrast with the early part of 1994 when the market was characterised by strong buying interest and escalation of property prices, activity in the residential sector in the beginning of the second half of 1994 began to drop.

It was noted that measures to dampen property speculation appeared to be having an effect on the residential market with more developers cutting prices and offering incentives to attract home buyers.

8

The Committee was also briefed on the findings of the Study on Port Back-up Land and Open Storage Requirements by the Planning Department.

To increase the supply of land for port-back up land and open storage, the study recommended the development of multi-storey lorry park near CT 8 at Kwai Chung, by means of a Government sponsored project or development by the private sector; and initiation of development through resumption of land at selected sites and designation of projects under the Public Works Programme notably in San Tin, Ping Che and Ta Kwu Ling.

The Committee was also briefed on the progress of the legislative proposal for the new procedures for the registration of Authorised Persons and Registered Structural Engineers under the Buildings Ordinance. Members noted that the legislation was being drafted and the aim was to implement the proposal within the current Legislative Council session..

End/Monday, March 27, 1995

Social security payments increase in April *****

Members of the public receiving payments under the Comprehensive Social Security Assistance (CSSA) and Social Security Allowance (SSA) schemes will collect more money from April 1.

The revision of payments is made possible following an approval by the Finance Committee of the Legislative Council, a spokesman for the Social Welfare Department said today (Monday).

"The revision mainly covers an inflation-related increase of 8.5 per cent in the payment rates under the CSSA and SSA schemes," the spokesman said.

In addition, a package of improvements to the CSSA scheme will also be introduced from April 1. They are:

* to pay each single-parent family a monthly supplement of $215;

*.to increase the standard rates for children;

9

* to grant the standard rates for children to full- time students aged 19 to 21;

* to raise the maximum level of disregarded earnings from $835 to $ 1,210 per month; and

* to disregard the first month's income of certain CSSA recipients (the elderly, the disabled and family carers) who get full-time jobs.

Details of the revised payment rates under the CSSA and SSA schemes are as follows:

CSSA

Payment rates (per month)

Existing Scale ($)

New Scale ($)

(1) Standard Rates Single Person Family Member Single Person Family Member

Elderly persons aged 60 or above 1,670 1,385 1,810 1,505

Disabled adult

50% disabled 1,670 1,385 1,810 1,505

100% disabled 2,085 1,805 2,260 1,960

Requiring constant attendance 3,055 2,770 3,315 3,005

Disabled child

50% disabled 2,015 1,735 2,410 2,105

100% disabled 2,435 2,150 2,865 2,555

Requiring constant attendance 3,400 3,120 3,910 3,610

Able-bodied child 1,465 1,180 1,810 1,505

Able-bodied adult 1,1 15 965 1,210 1,045

10

(2) Annual long-term supplement

1 eligible member 1,235 1,340

2-4 eligible members 2,470 2,680

5 or more eligible members 3,705 4,020

(3) Single-parent supplement 215

SSA

(1) Payment rates (per month)

(a) Disability allowance

Normal rate 970 1,050

Higher rate 1,940 2,100

(b) Old age allowance

Normal rate 485 525

Higher rate 550 595

(2) Financial eligibility limits for normal old age allowance cases

Monthly income limits

For a single person 3,630 4,140

For a married couple 5,870 6,490

Assets limits

For a single person 130,000 141,000

For a married couple 195,000 212,000

CSSA and SSA recipients who have further enquiries are advised to contact their respective social security field units or the department's hotline 2343 2255.

End/Monday, March 27, 1995

11

Contract awarded for Lantau toll plaza roadworks *****

The Secretary for the Treasury, on the advice of the Central Tender Board, has approved the award of an Airport Core Programme (ACP) contract to carry out roadworks for the toll plaza at northeast Lantau between the North Lantau Expressway and the Kap Shui Mun Bridge.

The contract, valued at $307.8 million, will be awarded by the Highways Department to Aoki Corporation of Japan.

As part of the Lantau Fixed Crossing project, the contract will include the construction of reinforced concrete box tunnels and retaining walls, vehicular underpasses, a reinforced concrete structure to accommodate a traction substation and ventilation building for the Airport Railway.

It also covers all road pavement and associated details for the toll plaza, expressway, link roads and access roads.

Construction work will start later this month for completion in early 1997.

The Lantau Fixed Crossing, one of the 10 projects on the ACP, comprises the Tsing Ma Bridge, the Kap Shui Mun Bridge and Ma Wan Viaduct. The Crossing forms part of an extensive transport network linking Tung Chung New Town and the new airport at Chek Lap Kok to the urban areas in Kowloon and Hong Kong.

End/Monday, March 27, 1995

12

Provisional statistics of restaurant receipts and purchases for the fourth quarter and the year of 1994 *****

The value of total receipts for the restaurant sector in 1994, estimated at $50.1 billion, increased by 4% when compared with 1993, according to the provisional statistics released today (Monday) by the Census and Statistics Department. After discounting the effect of price changes over the period, total receipts decreased by 4% in volume terms. The value of total purchases of restaurants increased by 2% to $17.9 billion.

In 1994, the largest growth in total receipts was recorded for nonChinese restaurants, by 8% in value, although virtually no growth in volume.

Likewise, the total receipts of fast food shops increased by 7% in value, but showing virtually no growth in volume.

Meanwhile, the total receipts of bars and Chinese restaurants increased by 4% and 2% respectively in value but decreased by 3% and 6% in volume.

Total restaurant receipts in the fourth quarter of 1994, estimated at $12.6 billion, decreased by 4% in value terms and 11% in volume terms when compared with a year ago. Over the same period, the value of total purchases of restaurants, estimated at $4.6 billion, decreased by 3% .

Among the different types of restaurants, the total receipts of fast food shops recorded the largest year-on-year increase in the fourth quarter of 1994, by 11% in value and 5% in volume. The total receipts of non-Chinese restaurants also rose by 10% in value and 2% in volume.

On the other hand, the total receipts of bars and Chinese restaurants registered significant decreases, by 16% and 11% in value respectively. In volume terms, the respective decreases were 21% and 19%.

13

Comparing with the preceding quarter, and bearing in mind that the comparison may be affected by seasonal factors, total restaurant receipts in the fourth quarter of 1994 increased by 1% in value, with virtually no change in volume. Restaurant receipts in volume terms are derived from receipts in value terms after adjusting for price changes. The relevant components of the Consumer Price Index are used as deflators.

Table 1 presents the revised figures for the total receipts and total purchases of the restaurant sector for the third quarter of 1994 and the provisional figures for the fourth quarter of 1994.

Table 2 shows the value and volume indices of total receipts by type of restaurant for the third quarter and the fourth quarter of 1994, with the quarterly average from October 1989 to September 1990 taken as 100.

Also tabulated are comparisons of the results of the fourth quarter of 1994 with those of the third quarter of 1994 and the fourth quarter of 1993; comparisons of total receipts in 1994 with 1993 are also given.

The Report on the Quarterly Survey of Restaurant Receipts and Purchases for the fourth quarter of 1994 is now on sale at $3 per copy at the Government Publications Centre, Queensway Government Offices, Low Block, Ground Floor, 66 Queensway; and the Publications Section of the Census and Statistics Department, 19th floor, Wanchai Tower, Wan Chai.

Enquiries about the survey results may be directed to the Wholesale and Retail Trade Statistics Section of the Census and Statistics Department on tel 2802 1258.

14

TABLE 1: TOTAL RESTAURANT RECEIPTS AMD PURCHASES

3rd qtr. 1994 4th qtr. 1994

(Revised figures) (Provisional figures)

Total restaurant receipts (HK$ million) 12 470.2 12 643.7

Total purchases by restaurants (HK$ million) 4 458.8 4 571.5

TABLE 2: VALUE AND VOLUME INDICES OF RESTAURANT RECEIPTS FOR 3rd QUARTER 1994 AND 4th QUARTER 1994

(Quarterly average of Oct. 89 - Sept. 90 = 100)

Index number

Type of restaurant Type of index 3rd quarter 1994 (Revised figures) 4th quarter 1994 (Provisional figures) 4th qtr. 1994 compared with 3rd qtr. 1994 4th qtr. 1994 compared wi th 4th qtr. 1993 1st-4th qtr. 1994 compared with 1st-4th qtr. 1993-

(Points) (Points) (Points) (X) (Points) (X) (Points) (X)

Chinese restaurants Value 125.0 125.2 ♦0.2 ♦0.2 -16.0 -11.3 ♦2.0 ♦ 1.6

Volume 80.5 79.2 -1.3 -1.6 -17.9 -18.5 -5.8 •6.4

Non-Chinese restaurants Value 161.4 171.3 ♦9.9 ♦6.2 ♦ 15.6 ♦ 10.0 ♦ 10.9 ♦7.5

Volume 106.2 111.2 ♦5.1 ♦4.8 ♦ 1.7 ♦ 1.6 -0.3 -0.3 _

Fast food shops Value 235.2 229.1 -6.1 -2.6 ♦23.3 ♦ 11.3 ♦ 13.5 ♦6.7

Volume 164.6 159.7 -4.9 -3.0 ♦7.5 ♦4.9 # # •

Bars Value 218.3 229.1 ♦10.7 ♦4.9 -41.9 •15.5 ♦9.7 ♦4.4

Volume 133.7 137.1 ♦3.4 ♦2.6 -36.4 -21.0 -4.6 -3.1

Other eating and drinking places Value Volume 232.6 151.5 275.1 174.5 ♦42.5 * ♦23.1 * 18.3 15.2 ♦74.0 ♦30.5 ♦36.8 ♦21.1 ♦25.3 ♦ ♦3.8 13.3 ♦2.7 ”

All restaurant types Value 145.1 147.1 ♦2.0 ♦ 1.4 -5.8 -3.8 ♦5.2 ♦3.7

Volume 95.0 94.9 -0.1 •0.2 -11.6 -10.9 -4.0 -4.0

# Change within ± 0.05

End/Monday, March 27, 1995

15

Restaurant workers registered as electors

*****

Civic-mindedness is on full display today (Monday) when dozens.of restaurant workers queued up to register to vote.

Invited by a Shau Kei Wan restaurant, staff of the Registration and Electoral Office (REO) and the Eastern District Office set up a special voter registration counter at the restaurant and conducted on-the-spot voter registration for the workers.

These workers, once registered, will be able to cast two votes in the September Legislative Council elections, one in a geographical constituency and the other in the new Hotels and Catering functional constituency.

A spokesman for the REO reminded those who wished to be eligible to vote in the coming Legislative Council elections that registration applications must be submitted before June 1 for inclusion in this year's Electoral Roll.

Combined registration forms will be sent next month via employers to most of the working persons who are eligible but have not yet registered as electors.

"By filling in the form, they can apply for registration as an elector in both a geographical constituency and one of the nine new functional constituencies," he said.

For working persons who are already registered as electors in a geographical constituency, most of them will receive a notification from the REO inviting them to be registered in one of the nine new functional constituencies according to their employer's principal business.

Arrangements will be made for them to be registered if they have no objection.

The spokesman said self-employed persons, and other eligible persons who had not yet received a notification from the REO by April 15, could obtain a voter registration form from over 1,500 outlets throughout the territory.

16

These outlets include REO, district offices, housing estate offices, banks and post offices.

For enquiries, members of the public may call the REO on tel 2891 1001.

End/Monday, March 27, 1995

"Respect Our Teachers" campaign to be launched next Monday *****

The Education Department has teamed up with a number of educational bodies to launch a "Respect Our Teachers" campaign to promote teachers' image and to foster a harmonious teacher-student relationship.

The campaign, with the support of educators and schools, will be kicked off next Monday (April 3) by the Director of Education, Mr W K Lam.

In his 1994 Policy Address, the Governor said: "The Government will be introducing a new programme of activities to promote the image of teachers and to attract more young people of high calibre to join the profession. These will include producing a special TV series, organising a teachers' day and outstanding teachers awards and distributing information and publicity on the teaching profession."

Activities of the "Respect Our Teachers" campaign include goodwill card design competition, essay competition, crossword puzzle competition, publication of a book on teachers with articles contributed by famous personalities in Hong Kong, and a most respectable teachers award scheme. Students, teachers and parents will be involved.

In addition, the department is planning to produce a video tape to foster a better teacher- student relationship, a TV documentary and TV drama series to drive home the importance of respecting our teachers as well as projecting a positive image for teachers.

17

The year-long campaign is jointly organised by the Education Department; the Hong Kong Teachers' Association; the Hong Kong Subsidised Secondary Schools Council; Union Heads of Aided Primary Schools of Hong Kong; Association of Heads of Secondary Schools; the Subsidised Secondary Schools Council; Sheng Kung Hui Primary Schools Principal Conference; the Hong Kong Catholic Diocesan Schools Council; and the Association of Heads of Primary Schools, the Hong Kong Council of the Church of Christ in China.

A spokesman for the Education Department today (Monday) appealed to other educational bodies either to join the campaign's working group or to organise activities in support of this worthwhile cause.

Attention News Editors:

• f.

The Director of Education, Mr W K Lam, will officiate at the kick-off ceremony of the "Respect Our Teachers" campaign which will to be held at 3 pm on Monday (April 3), Harcourt Room, Conrad Hotel, Pacific Place, Queensway.

Your representatives are invited to cover the event.

End/Monday, March 27, 1995 .. t ,

Temporary study rooms *****

The Education Department will open 81 temporary study rooms for students during the examination period from next Monday (April 3) to June 30.

A spokesman for the Education Department said today (Monday): "The temporary study room scheme provides a quiet study place for students during the examination period.

18

"They will be open from Monday to Friday except public holidays," he said.

The study rooms at 41 schools - 17 for secondary students which would be open from 7 pm to 10 pm and 24 for both primary and secondary students which would be open from 7 pm to 9 pm, are located throughout the territory, he said.

Leaflets on study rooms will be available for collection at the District Offices and the District Education Offices and posters showing their locations have been put up on notice boards in schools.

Study room facilities in over 280 locations are provided all the year round by the Urban and Regional Services Department, Home Affairs Department, Social Welfare Department and non- governmental organisations.

End/Monday, March 27, 1995

Archaeological site at Tung Chung yields significant finds *****

The archaeological study at Sha Tsui Tau, Tung Chung conducted jointly by the Antiquities and Monuments Office (AMO) of the Recreation and Culture Branch and archaeological teams from China is now in full swing yielding numerous significant archaeological finds.

The field study programme which facilitates cultural exchange between Hong Kong and China started last month.

The General Office of the Shenzhen Committee for Protection of Antiquities and Monuments first participated in the project. It has been succeeded by another two teams from the Guangdong Institute of Cultural Relics and Archaeology and the Anthropology Department of the Zhong Shan University since mid-March.

19

Over the past two weeks, relics of Tang Dynasty (618-907) pottery kilns and remains of Sung Dynasty (960-1279) burials have been discovered.

Attention News Editors:

A press visit to the Sha Tsui Tau archaeological site will be organised on Friday (March 31) when staff members of AMO and the archaeologists from China will conduct a guided tour of the excavated area.

t

Media representatives wishing to join the visit are requested to call the Secretariat Press Office (Telephone 2810 3188 or 2810 3354) to reserve a seat. Seats will be available on a first-come, first-served basis. .z, ■

A launch taking media members to Tung Chung will leave Queen's Pier, Central at 9.15 am sharp on Friday. It will return to Queen's Pier at about 2.45 pm.

End/Monday, March 27, 1995

Water storage figure ■ : . i

*****

is' • / •. ./

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 67.1 per cent of capacity or 393.374 million cubic metres, k This time last year the reservoirs contained 395.210 million cubic metres of water, representing 67.4 per cent of capacity.

End/Monday, March 27, 1995

20

Hong Kong Monetary Authority money market operations * * * * *

Time Cumulative change

$ million (hours) ($million)

Opening balance in the account 1,333 0930 +1,294

Closing balance in the account 1,965 1000 + 1,294

Change attributable to: 1100 +1,294

Money market activity + 1,262 1200 +1,262

LAF today -630 1500 +1,262

1600 + 1,262

LAF rate 4.25% bid/6.25% offer TWI 118.2 *+0.1* 27.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.84 14 months 2605 6.35 100.35 6.11

1 month 5.04 23 months 2702 7.50 101.86 6.55

3 months 5.39 28 months 3707 6.95 100.69 6.73

6 months 5.61 34 months 3801 8.00 102.92 6.96

12 months 5.99 60 months 5003 7.75 101.65 7.48

Total turnover of bills and bonds - $19,628 million

Closed March 27, 1995

End/Monday, March 27, 1995

DAILY INFORMATION BULLETIN

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

Tuesday, March 28,1995

Contents Page No.

.ci. . ■.<rr.e

Government determined to beat drug abuse...............................    1

Transcript of Governor's media session...................................  2

HK continues to attract companies......................................... 7

Joint Liaison Group to hold 32nd meeting.................................. 7

JLG expert talks on Budget................................................ 8

Sino-British Technical Group meets.................................... 8

ICC panels to meet.......................................................  9

Bills to enhance protection for vulnerable witnesses...................... 9

Mandatory Provident Fund................................................. 10

Preparatory Committee on Chinese Medicine members appointed........... 12

TCM professionals urged to support preparatory committee................. 15

New TAC chairman appointed and members reappointed....................... 17

/Committee endorses.....

Contents

Page No,

Committee endorses seat-belt wearing by bus drivers................... 18

Reclamations pose negligible effects on waterborne activites......... 18

Telecommunications Authority intervenes on competition issues......... 20

Resolution at Arts Development Council meeting........................ 22

External trade figures for February 1995 ............................. 23

Application on quota allocation for entry of PRC fisherman deckhands. 26

Dead chicken case..................................................... 26

Schools Dance Festival performances................................... 27

Ching Ming Festival holiday reminder.................................. 28

No mail delivery on Ching Ming Festival............................... 29

Hong Kong Monetary Authority tender results........................... 30

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

31

1

Government determined to beat drug abuse

*****

The Government will take a lead to work with the private sector, educationists, social workers and non-governmental organisations in a bid to develop a first-rate programme to beat drug abuse.

The determination was reiterated by the Governor, the Rt Hon Christopher Patten, after he visited a Life Education Centre today (Tuesday).

S'!

"I think there is a great commitment right across the community to do more to beat drugs and to reduce the amount of drug abuse in the community," he said.

At a summit earlier this month, the Government launched a new programme committing extra resources in manpower and cash to the fight against drug abuse.

"One of the earliest things that we'll be doing is reviewing the ideas that came up during the summit and reporting on which of those ideas we intend to carry forward and to translate into action and into policy," Mr Patten said.

Noting that education has a particularly crucial role to play in preventing and reducing drug abuse, he said that was why he started his series of visits with a visit to the Life Education Centre.

Life education provides a progressively graded preventive drug education programme for children aged between five and 12 years.

End/Tuesday, March 28, 1995 z

; . 1 ■ , . . J .

2

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

Following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting the Life Education Activity Programme Centre today (Tuesday).

Governor: Good afternoon. I think there is a great commitment right across the community to do more to beat drugs and to reduce the amount of drug abuse in the community. We had a very successful summit the other day at which we in Government launch a new programme committing extra resources both in terms of people and ideas and in terms of cash to the fight against drug abuse. Throughout the coming months I’ll be trying to take a particularly close interest in the way that our campaign develops. One of the earliest things that we’ll be doing is reviewing the ideas that came up during the summit and reporting on which of those ideas we intend to carry forward and to translate into action and into policy. I think that there is general agreement that education has a particularly crucial role to play in preventing and reducing drug abuse. I was therefore keen to start my series of visit with a visit to Life Education to see what LEAP are doing because I have heard from the Chief Secretary and from others what an excellent job is being done. It's being done as you know with the help of private sponsorship. There is a terrific waiting list for this great Life Education facility and we obviously got to look in Government at what more we can do to assist the development of Life Education.

So those of you who follow me around will found over the next few months that there are quite a few visits similar to this that we’ll be making. As I’ve said before, one of the statistics in Hong Kong which is going the wrong way is the figure that we see month after month, year after year, for drug abuse and drug-related crimes. We’ve got to tackle it, we’ve got to tackle it energetically. We’ve got to tackle it at every level and that's what we intend to do, giving a lead from Government, but working with the private sector, and working with educationists, and social workers, and non-governmental organisations to develop a really first rate programme here in Hong Kong so we can avoid some of problems that happen in other communities.

Question: Governor, do you think the request of Peter So Lai-yin, his request for an early retirement will affect the confidence of the Police force?

3

Governor: No, I very much hope that it won’t. He is as you know coming up to pensionable age. He has given, I think, 34 years of excellent service to the Royal Hong Kong Police and to the community. And I think that he has been making a decision based on the length of his service and on his pensionable entitlement. But I am sure that with an outstanding Commissioner and with morale as high as it's been in the Police force we'll continue to see a good recruitment, continuing commitment to the highest professional standards in the force. Everyone knows, I think, that we've got what is generally regarded as the finest Police force in Asia and possibly one of the finest well beyond Asia as well. And I intend to do everything we can to ensure that that continues.

Question: Are you concerned that other officers, or in fact others in the civil service will follow his ...?

Governor: We very much hope that we can do everything possible to ensure that morale in the civil service and in the police is as high as possible. I've said before that there are many reasons why people consider retirement, or leaving public service. I don't think that many of them, even though some of them are of course personally based, as I think is the case that you mentioned, there are very few I think which relate to anything that may happen before June 30, 1997. And I hope that through deeds as well as words our colleagues in China will be able to give reassurances to the civil service and we'll be doing everything we can to make clear our commitment to the highest standard of public service and to doing everything possible to ensure that Hong Kong retains an outstanding civil service.

Question: What do you expect from Lady Thatcher’s visit to China can help the Sino-British relationship and Hong Kong’s transition?

Governor: I think that any visit by a leader as prominent and distinguished as Lady Thatcher should help in building up understanding. Lady Thatcher was of course one of the architects of the Joint Declaration. She knows personally many of the Chinese leaders and I hope that she will be able to reaffirm to them the importance of standing by the spirit and the letter of the Joint Declaration. I'm sure that she'll want to point to Hong Kong's continuing successes. 10 years, 11 years after the Joint Declaration, Hong Kong has still been doing outstandingly well. I imagine she'll want to underline the importance of Chinese leaders' giving reassurance to Hong Kong and beyond Hong Kong, not only through words by also through action as well. Words speak loudly but deeds speak even more loudly.

Question: Is it her mission to urge the Chinese counterparts to speed up the JLG agenda?

4

Governor: She hasn't got a specific mission. She was invited to visit China by a distinguished Chinese institute. I am sure that during the course of the visit and during the course of the interviews’that she has with senior Chinese leaders, she will put forward, among other things, the importance of speeding up the work of the JLG. Chinese leaders themselves very often speak about the importance of speeding up the work of the JLG. I don't think there is anybody really, apart from the editor of Wen Wei Po in Hong Kong, who thinks that the Hong Kong Government is responsible for as not making greater progress at a greater speed in the JLG. You all know what the situation is. We're committed to marking as rapid progress as possible. And I hope that we can do that constructively with Chinese officials. Nobody gains from the deadlocks, nobody gains from the prolong arguments. And everybody is a loser. We occasionally get very specific information about what's going to happen on the Chinese side. Director Lu Ping in the United States last week said that we'll get agreement on the FSAs, for the airport and the airport railways within days, within days, not my phrase, not me making pledges or promises. So I hope that is translated into action and into agreement within days.

Questions: That means so far no good news to put Mr Lu Ping's words into practice?

Governor: Well, I suppose it's good news that we have a promise that an agreement is going to be within days. But I think our negotiators look forward to seeing that on paper.

Question: Do you think that the Chinese side is using delaying tactics in the Court of Final Appeal issue?

Governor: I think it’s for others to judge the intentions of the Chinese side. I don't think it's helpful for me to speculate about motive. We all know what the facts are. We all know that we gave the Chinese side a copy of our Bill last May. We all know that there were a few technical amendments which we gave them in January. What nobody has still told me is in what way the Bill that we have given the Chinese side the parts from the precise letter of the agreement reached in the JLG in 1991. You would think that if there was anywhere in which that Bill which Chinese officials have had for nearly 10 months. You would think that if there was any way in which that draft Bill differed from the JLG agreement Chinese officials would have told us by now. But there has been silence on that. So we must presume that the Bill is as we've said in line with the JLG agreement and if it is in line with the JLG agreement I very much hope we'll soon have the agreement of the Chinese side and we can go ahead in the spirit of co-operation and enthusiasm about the rule of law there in Hong Kong. After all, again Chinese officials has been saying in the United States and elsewhere that China is committed to the rule of law and committed to the 1991 agreement under which it was agreed that the Court of Final Appeal should be set up before 1997.

5

Question: Do you think there is a need to seek other channels between Sino-British ....?

Governor: No, I don't think that there is any question of searching for other channels. But what there is the opportunity that's regularly available for senior officials, senior retired officials explaining the situation in Hong Kong to Chinese officials. I repeat that it is 11 years, or there about, since the Joint Declaration was signed. Hong Kong is doing fantastically well. I very much hope Hong Kong is doing fantastically well for another 11 years. What that will require is some sensible decisions and some sensible commitment to the Joint Declaration which I hope will see from Chinese officials.

Question: Is it appropriate for non-Chinese officials to take part in the budgetary expert group? I am referring to the PWC members.

Governor: It's not for me to choose other people's teams for them. I didn't choose the teams for the Sevens the other day, and I don't seek to choose the teams of people that discuss matters with us on the Chinese side. The position is absolutely clear and we've been, I think, very constructive and very helpful about this. What we've said is that over the coming months, we want to discuss with the Chinese side the processes of budget making in Hong Kong and during the 1996-97 financial year, we'll want to discuss the content of the 1997 budget.

Question: But the two non-Chinese officials, they will come to know the secrets of the Hong Kong Government's finance?

Governor: No, what they will get to know if there are experts appointed from outside during the coming year is the processes, the way in which the Hong Kong Government makes the budget and if I may say so, does so very successfully.

Question: Have you ever taken drugs yourself?

Governor: No. I haven't. I'm not even in the position in which 1 say "Yes, but I didn't inhale." I have never taken drugs. Having said that, let me now qualify because the children who have been hearing, having a life education class would probably qualify what I've said straightaway. I used to smoke cigarettes until 1982, about February 25, when I threw away my last cigarette, partly because I had ulcers and I was told that I had a choice to make between taking medication for ulcer for the rest of my life or stopping smoking. It seemed to me infinitely preferable to stop smoking. But until then I had smoked and I'm sure it was extremely bad for me. I also drink alcohol from time to time, though I'm not drinking it at the moment because it is Lent.

6

Question: Do you think for fairness in the budget team, do you think they should avoid conflict of interest.?

Governor: I am sure that the Chinese officials have considered the point of our conflict of interest. But you’d better address those questions to Director Lu Ping or Ambassador Zhao or to other Chinese officials there. It’s not one for me.

Question: Talking about the Sevens and underage drinking .... more done to crack down underage drinking ... drugs?

Governor: I think that the best way of tackling the issue is do the sort of life education that we’ve seen here. One of the important lessons which I think was being got across to children here is the importance of withstanding peer pressures. Peer pressures are something that we confront at every age. But I think they can be particularly difficult to cope with when you are young, when you are dealing with others who may have a particularly charismatic if youth personality. I think having the self confidence to say no to things that you recognise are bad for you, having that self confidence is something that's important for children to recognise. Frankly, it is important for all of us to recognise it. I think I started smoking when I was a student because my parents smoked and because most of my peers smoked. Back in the middle ages when I was growing up, smoking I think was far more common among young people than it is today. That may have had something to do with the fact that there's been so much evidence since then about the impact of smoking on health and that there's been so much more life education for young people. I believe very strongly that knowing how to say no firmly but courteously is an important way of living a happy life.

Question: So what about underage drinking?

Governor: Nobody can approve of underage drinking or of doing anything else which is illegal.

Question: (inaudible)

Governor: 1 think if there are particular occasions which encourage underage drinking, we have to take that into account and we have to try to stop it in future. But by and large, the overwhelming impression that I get from something like the Sevens, and I think most visitors get from something like the Sevens is unlike sporting events in some other countries, this is one which is conducted extraordinarily peacefully and even though there're quite a few people there who have to borrow a phrase clearly had taken refreshment, they nevertheless by and large behaved pretty well. So people had fun over the weekend but they didn't give the police the sort of problems which we see often occurring in Europe and other countries and I hope we can long continue in Hong Kong to enjoy ourselves without causing problems. Thank you very much indeed.

End/Tuesday, March 28, 1995

7

HK continues to attract companies * ♦ ♦ * ♦

The Chief Secretary, Mrs Anson Chan, said Hong Kong continued to attract companies with a regional dimension to their operations because of its unrivalled connection to China and the Asia-Pacific Region.

Speaking at the Jebsen & Co Ltd's 100th anniversary celebrations today (Tuesday), Mrs Chan pointed out that Hong Kong was home to 714 regional headquarters, a significant increase from the 588 identified in 1992.

It offered one of the most business-friendly environments in the world, with a stable and low-tax regime, a sound legal infrastructure, and a labour force comprising some of the best-trained and hardest-working people in the region, she said.

Trading in goods and services was the lifeblood of Hong Kong, said the Chief Secretary, noting that it was the seventh largest trading entity in the world.

"Over the last decade, Hong Kong's trade with the rest of the world has increased five-fold, and in 1994, total trade exceeded HK$2,420 billion," she said.

She was delighted that Jebsen has chosen its 100th anniversary to establish an educational foundation to provide financial assistance to tertiary level students.

"Our human resources are our most precious asset and investment in the young people of Hong Kong will provide a lasting benefit to the territory," said Mrs Chan.

End/Tucsday, March 28. 1995

Joint Liaison Group to hold 32nd meeting *****

The following is issued on behalf of the Office of British Senior Representative of the Sino-British Joint Liaison Group:

The 32nd meeting of the Sino-British Joint Liaison Group will take place in Hong Kong on April 4, 6 and 7, 1995. The British team will be led by the Senior Representative, Mr Hugh Davies. The other members of the British team will be Mr Alan Paul (Counsellor. Office of the British Senior Representative, Sino-British Joint Liaison Group). Mr Nicholas Ng (Secretary for Constitutional Affairs, Hong Kong Government), Mr Robert Peirce (Political Adviser, Hong Kong Government), and Mr Sherard Cowper-Coles (Head of Hong Kong Department. Foreign and Commonwealth Office).

End/Tuesday. March 28, 1995

8

JLG expert talks on Budget ♦ ♦ ♦ ♦ ♦

In response to press enquiries, a government spokesman today (Tuesday) confirmed that experts of the British and Chinese sides of the Sino-British Joint Liaison Group will meet very soon in Beijing to discuss matters relating to the preparation of the 1997/98 Budget for Hong Kong.

The British team will be led by Secretary for the Treasury, Mr Donald Tsang. The Chinese team will be led by Chinese representative at the Joint Liaison Group, Mr Chen Zuo’er. They will be assisted by experts from the two sides.

End/Tuesday, March 28, 1995

Sino-British Technical Group meets ♦ ♦ ♦ ♦ ♦

The Sino-British Technical Group on Sewage disposal met today (Tuesday). The session was conducted in a pragmatic and harmonious atmosphere.

The Chinese experts, led by Professor Jing Wenyong and Professor Zhou Jiayi, listened with great care to the information provided by the British experts on technical issues of the Strategic Sewage Disposal Scheme (SSDS) which were of concern to them and reached broad agreement on work procedures, work programme and the agenda for the second technical group meeting.

Tomorrow the Chinese experts will visit various projects associated with sewage treatment and SSDS.

The Director of Drainage Services, Mr Ng Yee-yum, and leader of the British side of the Technical Group, said the meeting was a good forum for experts of both sides to exchange information and views on highly technical issues.

Both sides look forward to further meetings in the near future.

End/Tuesday, March 28, 1995

9

ICC panels to meet ♦ * * * *

The four panels of the Infrastructure Co-ordinating Committee will meet in Beijing for preliminary discussions.

The panel on Marine Channels will meet on March 30, the Roads and Bridges panel and the Air Traffic Control panel on March 31, and the Railway panel on April 4.

End/Tuesday, March 28, 1995

Bills to enhance protection for vulnerable witnesses

*****

Two bills aiming to protect and assist vulnerable witnesses in giving evidence in criminal proceedings were approved by the Govemor-in-Council today (Tuesday).

A Government spokesman said today that the two bills, the Criminal Procedure (Amendment) Bill 1995 and the Evidence (Amendment) Bill 1995, would be introduced to the Legislative Council on April 19.

The proposed legislation was based on the recommendations made by the Committee on Evidence of Children in Criminal Proceedings, the Working Party on Mentally Handicapped People Giving Evidence in Court and the Fight Crime Committee, he said.

The legislation will give effect to the scheme on vulnerable witnesses outlined in the Attorney General's Policy Commitments issued in October last year.

The spokesman said that the Evidence (Amendment) Bill 1995, which applied to children giving evidence in criminal proceedings, sought to remove the presumption of a child's incompetence to testify and abolish a rule of evidence which had been described by one judge as a "child molester's" charter.

Under the existing law, he said, children under seven years old were generally incompetent to testify, and a child who understood the duty of speaking the truth but did not understand the nature of the oath might only give unsworn evidence, which, without corroboration, was not sufficient to convict an offender.

10

The bill seeks to abolish the rule that unsworn evidence of children required corroboration following the change of practice in England.

The spokesman said that the Criminal Procedure (Amendment) Bill 1995 sought to introduce special procedures to avoid the trauma and allay the anxiety that would be experienced by vulnerable witnesses, namely the witness in fear, the child and the mentally handicapped.

"The amendment provisions in the bill will enable vulnerable witnesses to testily through live television link in a room separate from the court- room," he said.

They would also enable a video-recorded interview with a child or a mentally handicapped witness to be produced as evidence-in-chief in the trial provided that the witness was available for cross-examination afterwards, he added.

Other amendments, the spokesman said, would enable a deposition of a child or a mentally handicapped witness, taken before a magistrate, to be produced at the trial as the witness' evidence.

Under the bill, a scheme is also proposed to be set up whereby once the prosecuting authority issued to the magistrate a "notice of transfer", committal proceedings can be dispensed with and the case involving a child or a mentally handicapped witness is committed for trial without further ado.

The spokesman said that the purpose of this procedure was to avoid the trauma that would be experienced by the child witnesses and mentally handicapped witnesses being required to give evidence twice, once at the committal proceedings and again at the trial.

It also had the peripheral benefit of reducing pre-trial delay, he said.

End/Tuesday, March 28, 1995

Mandatory Provident Fund

*****

The proposed Mandatory Provident Fund (MPF) System would be operated by the private sector with a sufficient number and variety of schemes to ensure healthy competition and efficient deployment through diverse channels of the huge sums to be invested.

This was stated by the Secretary for Financial Services, Mr Michael Cartland tonight (Tuesday) at the 15th Anniversary of the Dragon Jaycees.

11

He also called on community support to develop a system that would enable everyone to retire in dignity and in a manner consistent with the independent self-reliant traditions which had served Hong Kong so well.

Mr Cartland revealed that a consultant had just been appointed to help elaborate the details of the scheme.

’’The Government aims to have the necessary legislation in place as quickly as possible within the current legislative session,” he said.

He said the Government’s preliminary thinking was that the compulsory system should contain the following key features:-

a minimum obligatory combined contribution rate from every employer and employee of ten percent, of which five per cent should come from the employer;

* a benefits-qualifying age of 65;

* preservation (i.e. non-withdrawal) of benefits until the qualifying age;

* portability of benefits from one employer to another;

* establishment of a mechanism to ensure preservation;

* establishment of residual pooling arrangements for employees who are unable to join any other scheme in the market;

a private sector guarantee against fraud or other unlawful activity, perhaps financed through insurance or by a retrospective levy on the providers (insurers, trustees, banks and fund managers);

* tighter regulation of providers, in particular trustees, and of investment vehicles; and

an authority to ensure comprehensive and prompt contributions and ’ compliance with regulations.

’’The Government considers that, if the community wishes a compulsory system to be introduced, all these features would be essential and in the best interests of the retiring work-force." said Mr Cartland.

End/Tuesday, March 28, 1995

12

Preparatory Committee on Chinese Medicine members appointed *****

The Government announced today (Tuesday) the appointment of Dr Daniel C W Tse as the Chairman of the Preparatory Committee on Chinese Medicine (PCCM) for two years, with effect from April 1, 1995. Dr Tse is the President and Vice-Chancellor of the Hong Kong Baptist University.

Also appointed at the same time are 20 members for the committee. They include seven traditional Chinese medicine (TCM) practitioners, three members involved in the trade or dispensing of Chinese medicines, four academics or doctors with expertise and knowledge in Chinese medicine, three respectable community figures, and three Government officials.

The three officials are the Deputy Secretary for Health and Welfare, the Director of Health and the Chief Pharmacist of the Department of Health, or their representatives. Except for the three Government officials, all members are appointed by the Secretary for Health and Welfare on ad personam basis.

The term of office for all PCCM members is also two years, starting from April 1. The appointments will be gazetted on Friday (March 31).

The establishment of the PCCM is one of the recommendations made in the Report of the Working Party on Chinese Medicine, which was released in November last year.

The Governor-in-Council has endorsed the Report, which is now the cornerstone of the Government's policy in recognising, regulating and developing traditional Chinese medicine.

"The work of the preparatory committee will have a significant bearing on the long-term development and regulation of TCM in Hong Kong," the Secretary for Health and Welfare. Mrs Katherine Fok, said today (Tuesday).

"I strongly believe, that under the leadership of Dr Tse, the committee will go a long way towards the development on TCM," she added.

The main task of the PCCM is to steer the compilation of a list of TCM practitioners in Hong Kong, based on which the criteria of eventual registration of . TCM practitioners will be devised upon the advice of the PCCM.

13

The PCCM is also responsible for advising on legislation establishing a statutory body for the purposes of promoting, developing and regulating TCM. Furthermore, it will advise on how public education in Chinese medicine, in particular potent herbs, can be enhanced and on other matters incidental to the carrying out of its functions.

"The work of the PCCM is complex and important. If need arises, its membership may be increased," Mrs Fok noted.

"We will also establish sub-committees under the PCCM to examine and discuss specific issues connected with TCM practitioners, Chinese medicine, etc. intensively in order to facilitate the work of the preparatory committee," she added.

The PCCM will hold its first meeting in April.

The following is a membership list of the PCCM :

Chairman

Dr Daniel C W TSE,

President and Vice-Chancellor of the Hong Kong Baptist University

Members

Mr TAM Ling-kwan

The Permanent Governor and President of Sin-Hua Herbalists & Herb Dealers’ Promotion Society

Mr MUI Ling-cheong

President of the Hong Kong Association of Traditional Chinese Medicine

Mr CHEUNG Tin-kay

Finance Officer of the Chinese Acupuncture Association

Mr KONG Yat-wai

Secretary-General of the Kowloon Herbalists Association

Mr CHEUNG Tai-chiu

Course Officer of Certificate Course in Chinese Medical Science of HKU's School of Professional and Continuing Education

14

Mr FAN Siu-tsun

President of the Hong Kong Ching Wah Chinese Medical Institute

Mr KWAN Chi-yee

Permanent Honorary President of the Association of Hong Kong & Kowloon Practitioners of Chinese Medicine

Mr CHEUNG Wai-chung

Chairman of the Hong Kong Yce Yee Tong Chinese Medicine Association

Mr CHOI Wai-lam

Secretary-General of the Hong Kong & Kowloon Chinese Medicine

Merchants Association

Mr HO Fat-yee

Vice-President of the Hong Kong Chinese Medicine Employees Association

Dr Paul BUT

Director of CUHK’s Chinese Medicinal Materials Research Centre

Dr YEUNG Hin-wing

Professor in Biochemistry in CUHK

Dr Mabel YANG

Lecturer in the Faculty of Medicine of HKU

DrWM KO

Deputy Director of Operations of the Hospital Authority

Professor Patrick I IO

Ophthalmologist

Mr Paul C H FAN

Chairman of Paul Fan Securities Ltd

Dr C I I LEONG

Legislative Councillor

Director of Health or her representatives

Deputy Secretary for Health and Welfare or her representative

15

Chief Pharmacist or his representative

Attention News Editors:

The Secretary for Health and Welfare, Mrs Katherine Fok, will host a cocktail reception for members of the PCCM at 6.30 pm today (Tuesday) at the Staff Club, fourth floor, New Annexe, Central Government Offices (Main Wing).

You are invited to cover the event.

End/Tuesday, March 28, 1995

TCM professionals urged to support preparatory committee

*****

The establishment of the Preparatory Committee on Chinese Medicine marks another step forward in Government’s policy on traditional Chinese medicine (TCM), the Secretary for Health and Welfare, Mrs Katherine Fok, said.

The committee,-which will be officially set up on April 1, will steer the implementation of the relevant recommendations made in the Report of the Working Party on Chinese Medicine released in November last year, she added.

Speaking at a cocktail reception today (Tuesday), Mrs Fok assured the newly-appointed members that the work of the preparatory committee would be challenging and important.

"Your work does have historical significance because traditional Chinese medicine, which has been existent for thousands of years, is part of our Chinese cultural heritage," she said.

"I hope, and 1 believe, that under the leadership of Dr Daniel Ise, who has remarkable experience and talent in public service, the preparatory committee will be able to create an environment for even more systematic, healthy and focused development of Chinese medicine."

Mrs Fok realised that professionals in the trade were very concerned about the recognition of their professional status in the community.

16

However, she emphasised that this professional status had its root only from the recognition by the public, not by the Government.

"The recognition stems from the contributions made by professionals to society over a sustainable period of time.

"Government, or even the preparatory committee, can only provide support for the creation of an infrastructure on which traditional Chinese medicine professionals can strive for excellence of their service," Mrs Fok said.

Her view was shared by Dr Daniel Tse, Chairman of the preparatory committee.

He noted that efforts made by people in the trade were prerequisite to having their professional status be recognised.

"I believe that this is a basic principle applicable to professions across the board," he said.

"This principle is particularly relevant to the TCM profession given its very diverse background in training, methodology and mode of practice on the part of TCM professionals.

"I therefore regard that co-operation among people in the trade is of paramount importance to the status of the TCM profession in our society. 'Persistent selfstrengthening' is the crux of the development of Chinese medicine," he said.

On the role of the committee. Dr Tse said it would provide a framework within which the TCM profession could be recognised, regulated and developed.

"Government's policy on TCM will certainly rely on our advice, which has to be unbiased, objective, rational, practical and feasible.

"Our role, just like those of the many other Government's advisory committees in various policy areas, is to provide expert opinion in TCM," he added.

End/Tuesday, March 28, 1995

17

New TAC chairman appointed and members reappointed ♦ ♦ * ♦ ♦

The Governor has appointed Dr Raymond Ho Chung-tai to succeed Professor Leung Chi-keung as chairman of the Transport Advisory Committee (TAC) for two years from April 1, 1995.

In addition, the Governor has reappointed Messrs Donald Chia, Leung Kong-yui and Miron Mushkat as members of the TAC for two years, also from April 1, 1995.

Dr Ho is a civil engineer by profession. He was formerly a partner/senior director of Maunsell Consultants Asia Ltd and has been involved in many transport projects.

He is currently chairman of Capital China Group, a company involved in infrastructure, energy, industrial transportation and other projects.

He was previously council chairman of the City University of Hong Kong, president of the Hong Kong Institution of Engineers and a vice-president of the Institution of Structural Engineers, UK.

The Secretary for Transport, Mr Haider Barma, said: " I am delighted that Dr Ho has accepted the chairmanship and that I am confident that given Dr Ho's professional background and wealth of experience in chairing committees he would lead the TAC with distinction."

Professor Leung first joined the Committee in 1986 and was appointed chairman in 1991, He has served on the TAC for nine years.

Mr Barma said: "The Administration has respected Professor Leung's wish to step down from the TAC at the end of his present term because of his full time commitments since taking up directorship of the Hong Kong Institute of Education. He will be missed and deserves full credit for his sterling work and substantial contribution."

End/Tuesday, March 28, 1995

18

Committee endorses seat-belt wearing by bus drivers ♦ ♦ ♦ ♦ ♦

The Transport Advisory Committee today (Tuesday) agreed in principle the compulsory fitting and wearing of three-point seat belts for drivers of all newly

registered buses.

The committee had not taken a decision on the time frame for the implementation of the new measure but endorsed the gradual introduction of seat-belt wearing by bus drivers.

As regards existing buses, members agreed that there should be a timetable whereby bus operators were required to modify their fleet, taking into account the types of vehicles involved and the technical feasibility of carrying out the modifications.

Members noted that as far as accident rates for bus drivers were concerned, bus drivers were a more at-risk group, having the third highest rate in comparative casualty rates for drivers per thousand licensed vehicles, and per million vehicle kilometres respectively.

From a road safety viewpoint, therefore, the additional protection offered by seat belts would be beneficial to bus drivers and hence to their passengers, members noted.

End/Tuesday, March 28, 1995

Reclamations pose negligible effects on waterborne activities

*****

The results of hydraulic studies have concluded that reclamation works being carried out in the Victoria Harbour pose negligible effect on vessel navigation and other waterborne activities.

This was stated by the Principal Government Civil Engineer, Dr Choi Yu-leuk, during a press visit to the Harbour Hydraulic Laboratory of the Civil Engineering Department (CED) in Tuen Mun today (Tuesday).

19

Dr Choi said detailed hydraulic studies had been conducted by the government to ensure that the hydraulic conditions, both during and after the construction of major port developments, and large-scale reclamations would suit waterborne activities.

"The studies using a suite of advanced mathematical and physical models to find out the effects of harbour engineering works on tidal flow regime, wave climate and sediment deposition characteristics, have helped to select the optimum layouts of these proposed developments,” he said.

He pointed out that the department had conducted over 30 hydraulic studies for major port developments since 1989. Of these, the most representative ones were the West Kowloon Reclamation, the Central Reclamation and the Green Island Reclamation in Victoria Harbour and the Lantau Port Development.

"It is found that upon the completion of the three reclamation projects in the Victoria Harbour, the peak current velocity between Central and Tsim Sha Tsui will be reduced by 12% while in other areas the current velocities will be basically unchanged.

"The result of an in-depth hydraulic study for the Lantau Port Development which involves about 1,000 hectares of reclaimed land and the construction of a five-kilometre long breakwater between Lamma Island and Cheung Chau, has indicated that upon the completion of the development, there will be little change to the tidal flow in the Victoria Harbour.

"On the other hand, the development will provide a more even distribution of the tidal flow in the western part of the harbour, resulting in better control of water quality.

"The increase of flow in East Lamma Channel is expected to be about six per cent. Therefore, it can be concluded that the Lantau Port Development does not have significant effect on navigation and other waterborne activities.

"The Lamma Breakwater will have a significant effect on the wave climate of the Western Harbour where an anchorage will be developed.

"The percentage of time during which wave height at the proposed anchorage exceeds 0.75 metre will be reduced from about 9.5% to about 1.8%, representing a substantial improvement to vessel safety," Dr Choi said.

20

’’Meanwhile mathematical sediment transport modelling results have indicated that after the construction of these major developments, the rate of natural siltation in the Victoria Harbour and the Western Harbour will be decreased by 10% and 20% respectively, thus helping to alleviate an excessive sedimentation problem,” he added.

Dr Choi said the Harbour Hydraulic Laboratory was built in 1989 to provide hydraulic modelling test services to investigate and assess the effects on the tidal regime of the harbour of various coastal development proposals, such as reclamations, piers, breakwaters and seabed dredging.

A physical tidal model of Hong Kong's Victoria Harbour is housed inside the laboratory, reproducing an area from Lei Yue Mun in the east, to Siu Lam in the west and to Lamma Island and Cheung Chau in the south.

End/Tuesday, March 28, 1995

Telecommunications Authority intervenes on competition issues *****

The introduction of competition in fixed telecommunications network services (FTNS) requires the resolution of a number of complex technical and commercial issues.

The Telecommunications Authority. Mr Alexander Arena, has issued today (Tuesday) a Statement to assist the FTNS operators to progress their commercial negotiations on these matters.

"While some progress has been achieved so far in commercial negotiations, much more needs to be done quickly" Mr Arena said.

"The Telecommunications Authority is intervening now to help in the early resolution of these issues so that competition can be established as soon as possible after the Hong Kong Telephone Company’s monopoly expires on June 30, 1995.

"Now that we have the Joint Liaison Group's endorsement to the issue of the FTNS licences we are moving quickly to ensure that the Hong Kong community can benefit from competition in telecommunications." Mr Arena said.

21

Copies of TA’s Statement may be obtained from Senior Administrative Officer (Legislation & Planning) Miss Eliza Yau on tel 2961 6602 and fax 2803 5112.

Note to Editors:

Following is an executive summary' of the statement on Interconnection and Related Competition Issues by the Telecommunications Authority, Mr Alexander Arena, today (Tuesday):

Executive Summary

The introduction of fixed telecommunications network services (FTNS) competition requires the resolution of a number of complex technical and commercial issues. After reviewing the progress of commercial negotiations among the fixed telecommunications operators [Hong Kong Telephone Company (HKFC), Hong Kong Telecom International (HKTI), and the three new entrants], the Telecommunications Authority (TA) is issuing this Statement to assist in the resolution of some of these issues and to progress future commercial negotiations on these and related matters.

The TA is of the view that:

while some progress has been achieved so far in commercial negotiations, much more needs to be done quickly and the TA now proposes that this statement assists to determine an industry position on a number of outstanding matters;

calling line identification (CLI) data is integral to the efficient operation of modem telecommunications networks;

CLI should be made available by all fixed telecommunications network services (FTNS) licensees to other FTNS licensees on a ubiquitous basis;

* all FTNS licensees should be required to abide by a CLI Code of Conduct on customer information obtained through CLI exchange; and

* the Code would be developed by the TA in consultation with all network licensees by 31 May 1995:

22

under the terms of the FTNS licences, operators are obliged to provide their services to resellers at their published rates. An FTNS operator is not precluded from reselling tariffed services acquired from another FTNS licensee;

each operator (HKTI and the four FTNS operators) is the subject of a discrete permission to operate and does not act as an agent of any other operator. Interconnection matters between them fall under Section 36A of the Telecommunication Ordinance;

numbering issues;

"00X" codes are to be assigned to local FTNS operators for

customer access via their networks to the international gateway(s);

a variety of ”0XX" access codes are to be removed to the "10X” range after 30 June 1995;

number portability is to be introduced based on an intelligent network (IN) approach. Pending the implementation of the IN approach, operators shall implement an interim solution based on call forwarding.

• customer access arrangements. Direct access is to be facilitated and indirect access allowed subject to particular regulatory oversight.

The rest of this Statement provides more detailed background on these issues and expands on the TA’s consideration of them.

End/Tuesday, March 28, 1995

Resolution at Arts Development Council meeting ♦ ♦ ♦ ♦ ♦

The Hong Kong Arts Development Council (HKADC) resolved at its meeting today (Tuesday) to give its support in principle to two documents - the Guidelines for Representative Arts Organisations and for their Nominees for Membership of the HKADC and the Standing Orders of the HKADC as drafted and presented for discussion at the meeting of the LegCo Panel for Recreation and Culture on March 23.

Upon fine-tuning of the above two documents by the Recreation and Culture Branch (RCB) taking into consideration views of the arts community and the HKADC, the contents of the two papers, if amended, will be circulated again to the HKADC for approval.

23

The Council is satisfied that the Standing Orders for the HKADC as drafted by the RCB will enable the HKADC to attain the level of open and transparent operations so desired by the HKADC and the arts community and at the same time accord the HKADC due discretion on matters over which the HKADC is in the best position to decide.

Members were unanimously in favour of adopting the Standing Orders.

A vote was taken on whether the requirement for open meetings should be enshrined in the law as proposed by the Ms Christine Loh.

The results was 11 against, six in favour and one abstention.

Two members who were absent from the meeting had earlier indicated that they were not in favour of legislation.

The HKADC would like to urge the Legislative Council to respect the collective wishes of the Council and the arts community and to move towards enactment of the HKADC Bill with all expedition upon its second and third reading.

In so doing the HKADC hopes that the Legislative Council will give paramount importance to the central issue, that is, to consider all aspects of the Bill in the light of their efficacy for the development of the arts in Hong Kong.

End/Tuesday, March 28. 1995

External trade figures for February 1995 * ♦ * * *

Both re-exports and imports continued to increase substantially in February 1995. Domestic exports also showed a notable increase.

These are shown in the external trade figures for February released today (Tuesday) by the Census and Statistics Department.

The value of total exports (comprising re-exports and domestic exports) increased by $11.9 billion or 16% to $84.8 billion in February 1995.

Within total exports, the value of re-exports, at $70.0 billion in February 1995. was $10.7 billion or 18% higher than a year earlier.

24

The value of domestic exports increased by $1 3 billion or 10% over a year earlier to $14.8 billion in February Meanwhile, the value of imports increased by $20.4 billion or 26% to $99 7 billion.

As the value of total exports in February 1995 was smaller than that of total imports, a visible trade deficit of $14 9 billion, equivalent to 15.0% of the value of imports,-was recorded. This compared with a deficit of $6.5 billion, equivalent to 8.2% of the value of imports, in February 1994

In the first two months of 1995, the value of total exports grew by 20% over the same period last year. Amongst this, the value of re-exports rose by 21%, while that of domestic exports increased by 14%. The value of imports showed an increase of 28%.

In the same period, a visible trade deficit of $18.5 billion, equivalent to 9.1% of the value of imports, was recorded.

This compared with a deficit of $4.7 billion, equivalent to 3.0% of the value of imports, recorded in the first two months of 1994

A Government spokesman said the strong export performance in the first two months of 1995 was encouraging. Of particular note was the continued significant growth in domestic exports, which until fairly recently still recorded declines.

The spokesman added that the larger visible trade deficit recorded so far this year was partly because of a further deterioration in the terms of trade, as the prices of imports continued to rise faster than those of exports in recent months.

Another important contributory factor was the marked increase in retained imports, by 40% in value terms in January and February combined over a year earlier.

The strong absorption of imports for local use was related to the pick-up in industrial activity along with a better export performance, as well as the sustained domestic demand particularly in regard to investment in capital goods.

A detailed analysis of Hong Kong's external trade for February 1995, by commodity and country, will be released in mid-April.

25

EXTERNAL TRADE FIGURES FOR FEBRUARY 1995

MERCHANDISE: Domestic Exports : $14,764 million

Re-exports : $70,016 million

Total Exports : $84,781 million

Imports : $99,706 million

Trade balance : -$14,925 million

COMPARATIVE FIGURES

Dec 94 to Dec 93 to Change

Latest 3 months Feb 95 Feb 94

HKS Mn. HK$ Mn. HKS Mn. X

Domestic Exports 53,066 49,397 +3,669 +7.4

(X of Total Exports) (18.4X) (19.8X)

Re-exports 235,189 199,910 +35,279 + 17.6

Total Exports 288,255 249,307 +38,948 + 15.6

Imports 316,252 255,732 +60,520 +23.7

Trade balance -27,997 -6,425 -21,572

February February Change

Same month last year 1995 1994

HKS Mn. HKS Mn. HKS Mn. X

Domestic Exports 14,764 13,474 +1,290 +9.6

(X of Total Exports) (17.4X) (18.5X)

Re-exports 70,016 59,365 +10,651 + 17.9

Total Exports 84,781 72,839 +11,941 + 16.4

Imports 99,706 79,305 +20,401 +25.7

Trade balance -14,925 -6,465 -8,459

February January Change

Last month 1995 1995

HKS Mn. HKS Mn. HKS Mn. X

Domestic Exports 14,764 18,178 -3,414 -18.8

(X of Total Exports) (17.IX) (17.9%)

Re-exports 70,016 83,143 -13,126 -15.8

Total Exports 84,781 101,321 -16,540 -16.3

Imports 99,706 104,944 -5.238 -5.0

Trade balance -14,925 -3,623 -11,302 * 4

Jan-Feb Jan-Feb Change

Calendar year to-date 1995 1994

HKS Mn. HKS Mn. HKS Mn. X

Domestic Exports 32,942 28,815 +4,128 + 14.3

(X of Total Exports) (17.7X) (18.6X)

Re-exports 153,159 126,136 +27,023 +21.4

Total Exports 186,102 154,951 +31,151 +20.1

Imports 204,649 159,682 +44,967 +28.2

Trade balance -18,548 -4,732 -13,816

Mar 94 to Mar 93 to Change

Last 12 months Feb 95 Feb 94

HKS Mn. HKS Mn. HKS Mn. X

Domestic Exports 226,220 220,475 +5,745 +2.6

(X of Total Exports) (18.8X) (20.8X) +16.3

Re-exports 974,944 838,631 +136,314

Total Exports 1,201,164 1,059,106 +142,058 + 13.4

Imports 1,295,676 1,086,081 +209,595 + 19.3

Trade balance -94,512 -26,975 -67,536

28 March 1995

CENSUS AND STATISTICS DEPARTMENT

End/Tuesday, March 28, .1995

26

Application on quota allocation for entry of PRC fisherman deckhands

*****

Applicants for PRC fisherman deckhands quota allocation under the PRC fisherman deckhands scheme are reminded to submit their applications on or before Friday (March 31), which is the closing date for the application, a spokesman for the Immigration Department said today (Tuesday).

"Applications under the new scheme may be made by hand or by post before the closing date to the Harbour Control office of the Immigration Department at 10th floor, Harbour Building, 38 Pier Road, Central. Late applications will not be entertained," the spokesman said.

Enquiries concerning the new arrangement may be directed to the Agriculture and Fisheries Department on tel 2733 2201 or to the Immigration Department at 2852 3421.

End/Tuesday, March 28, 1995

Dead chicken case

*****

There was no evidence to show that dogs were responsible for the attacks on chickens at the temporary Smithfield market early yesterday (Monday) morning, Senior Veterinary Officer of the Agriculture and Fisheries Department (AFD). Dr Liu Kwei-kin, said today (Tuesday) following investigation of the case.

Dr Liu said there was no evidence indicating that the premises had been disturbed by dogs. The single metal cage in which the dead chickens were reported to be found showed no signs of damage.

Also, the fact that the deaths were restricted to one cage was not consistent with the usual pattern of dog attacks on caged poultry, he said.

The cause of death of the chickens could not be determined since all the carcasses had been disposed of, he added.

27

Dr Liu pointed out that in the two days following the incident, the department had organised nine dog-catching operations involving five teams of dog-catching staff near the temporary market in Smithfield, but no stray dogs were sighted in the vicinity. These operations were carried out both in the daytime and overnight.

’’Evidence so far did not point to the fact that dogs were responsible for the case,” he said.

However, Dr Liu stressed that the department would liaise closely with the market management to monitor the situation. AFD's dog-catching teams would also step up patrols in the area.

He called upon all dog owners to keep their dogs under proper control to prevent causing nuisance to other people.

End/Tuesday, March 28, 1995

Schools Dance Festival performances ♦ * ♦ ♦ ♦

The best dancers from among 4,002 students who took part in the 31st Schools Dance Festival will perform for the public in April.

The dance extravaganza is part of the prize presentation and winners performances which will be held at the Concert Hall. Hong Kong City Hall on April 10 and 11, and at the Auditorium. Sha Tin Town Hall on April 14. 15 and 16.

All performances — Chinese, Oriental, Modem, Western Folk and Children Dances — will begin at 7.30 pm each evening.

Tickets of $15. $25 and $30 for all performances arc available at the URBTIX outlets. There will be a 10 per cent discount for any purchase of 10 or more tickets.

The 31st Schools Dance Festival Winners Performances are presented by the Education Department, the Urban and Regional Councils, and the Hong Kong Schools Sports Council.

A spokesman for the Education Department said today (Tuesday) that 20 special schools, 81 secondary schools and 119 primary schools took part in this year’s Dance Festival.

28

He said 40 schools received honours, 130 were highly commended, 140 commended and nine teams were awarded for their choreography.

Results of the Dance Festival are:

Primary School Section

Champion : 1 st runner-up : 2nd runner-up : 3rd runner-up :

Sam Shui Natives' Association School St Paul's Convent School Primary Section Dr Catherine F Woo Memorial School Yaumati Catholic Primary AM School

Secondary School Section

Champion : 1 st runner-up : 2nd runner-up : 3rd runner-up :

SK.H Bishop Mok Sau Tseng Secondary School St Paul's Convent School Bishop Hall Jubilee School l ack Ching Girls Middle School

Most Progressive School Award.

Primary School Section : Sam Shui Natives' Association School Secondary School Section :St Paul's Convent School

End/Tuesday. March 28. 1995

Ching Ming Festival holiday reminder

*****

The Labour Department today (Tuesday) reminded employers that April 5 (Wednesday), the Ching Ming Festival Day, is one of the 11 statutory holidays for employees.

Under the Employment Ordinance, all employees, irrespective of their wage levels, are entitled to statutory holidays and must be paid for the day off if they have worked continuously for the same employer for three months or longer immediately before the statutory holiday.

29

Holiday pay should be equivalent to an employee’s earnings on a full working day and should include basic wages as well as allowances that can be expressed in money terms such as meals and cost of living allowances.

Where the earnings vary from day to day, holiday pay should be the average daily earnings during every complete wage period, which could be between 28 and 31 days, preceding the holiday.

If an employee is required to work on a statutory holiday, he must be given an alternative day off within 60 days before or after that day.

Enquiries about statutory holidays may be made at the Labour Department’s General Enquiry Telephone Service on tel 2717 1771.

End/Tuesday, March 28. 1995

No mail delivery on Ching Ming Festival *****

The Postmaster General, Mr Mike Pagliari, announced today (Tuesday) that there would be no mail delivery on April 5 (Ching Ming Festival).

All post offices will be closed on that day.

End/Tuesday, March 28. 1995

30

Hong Kong Monetary Authority tender results ♦ ♦ ♦ ♦ ♦

Tender date 28 Mar 95 28 Mar 95

Paper on offer EF bills EF bills

Issue number Q513 H561

Amount applied HKS5.698 MN 1 IK$5,170 MN

Amount allotted HK$ 1,500 MN HKS800 MN

Average yield accepted 9 5.40 PCT 5.63 PCT

Highest yield accepted 5.40 PCT 5.64 PCT

Pro rata ratio About 67 PC I' About 17 PCT

Average tender yield 5.44 PCT 5.66 PCT Hong Kong Monetary Authority

Tenders to be held in the week beginning April 3, 1995

Tender date 4 Apr 95

Paper on offer EF bills

Issue number Q514

Issue date 6 Apr 95

Maturity date 5 Jul 95

Tenor 90 days

Amount on offer HK$ 1.500+300 MN

End/Tuesday, March 28, 1995

31

Hong Kong Monetary Authority money market operations

*****

Sjnillion Time (hours) Cumulative change (^million)

Opening balance in the account 1,965 0930 +666

Closing balance in the account 1,167 1000 +666

Change attributable to : 1100 +651

Money market activity +654 • 1200 +654

LAF today -1,452 1500 +654

1600 +654

LAF rate 4.25% bid/6.25% offer TWI 118.1 *-0.1*28.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 4.99 14 months 2605 6.35 100.44 6.02

1 month 5.04 23 months 2702 7.50 102.00 6.46

3 months 5.37 28 months 3707 6.95 100.94 6.61

6 months 5.58 34 months 3801 8.00 103.14 6.87

12 months 5.89 60 months 5003 7.75 102.05 7.38

Total turnover of bills and bonds - $20,918 million

Closed March 28, 1995

End/Tuesday, March 28, 1995

DAILY INFORMATION BULLETIN

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

Wednesday, March 29,1995

Contents Page No,

Transcript of Financial Secretary's media session.......... 1

Public views sought on provision of legal services......... 3

Exchange Fund at end-1994 stands at $408 billion........... 8

Joint Liaison Group to hold expert talks............... 13

Agreement on Airport Bill reached with China........... 13

Appointments to the Housing Authority................». 14

Government purchasing a "big business".................... 15

Four lots of land up for auction....................... 16

Closure of Quarry Bay illegal structure sought......... 17

Firemen praise for fighting factory fire............... 18

Tai Po lot to let...................................... 18

Flushing water cuts in southwest Kowloon and Tsuen Wan .... 19

Hong Kong Monetary Authority money market operations .... 20

1

Transcript of Financial Secretary's media session

*****

Following is the transcript of the media session by the Financial Secretary, Sir Hamish Macleod, after the Legislative Council meeting today (Wednesday):

I have two reasons for being happy this afternoon. The first, of course, is the Budget Appropriation Bill has gone through with a very healthy 48-1 vote, so that is extremely pleasing. Secondly, the important question of the Expert Talks on the Transitional Budget; it's good news that they have now resolved whatever problems they had about defining the scope of the talks and that is going ahead, as planned, tomorrow. So, Donald Tsang and his team will be travelling up and those talks will take place tomorrow.

I know that on our side, we've done a lot of detailed preparation and so I hope that those talks can get off to a good start tomorrow and we will then be entering into quite a long process, obviously, right up to the transitional Budget, of talking in that group of experts, so I look forward to that being a success too.

QUESTION AND ANSWER SESSION

Question: What was the problem and how was it resolved?

FS: The problem, I believe, was to do with the scope of the talks, although the scope of the talks had been, we thought, clear for a very long time. But anyway, there were some discussion of the wording but that has now been resolved. There will be an official announcement, I believe, by the JLG Officers with the precise wording of the announcement but basically, they are going to discuss the transitional budget and related matters.

Question: So is (inaudible) the 1997-98 Budget or the 1996-97 Budget?

2

FS: It's very clear: the transitional budget is the 1997-98 Budget. Actually, it has been very clear from the start what we were talking about.

Question: But this doesn't solve (inaudible) I mean (inaudible) the problem this morning (inaudible)

FS: I don't think anyone would talk about threats in this one. We had thought it was clear what the discussions were about and apparently there emerged at a rather late stage some uncertainties, and I am very glad those have been resolved. I'm not going to dwell on the uncertainties. I think the main thing is to get on with it and have good talks.

Question: But Donald Tsang had been supposed to go to Beijing this afternoon but can you say that he's delayed his trip to Beijing today?

FS: Well, I don't know exactly what flight he is catching but he is certainly going today and he will be there in time for the talks, that's the main thing.

Question: So there was a delay?

FS: I think JLG Officers had better answered that question. I don't know which flights they are actually going on.

•• 7 . ‘.j

Question: When did you discover the problem - till this late afternoon?

• •• ...... X•I . .

FS: Only rather recently, I understand. Obviously, I've been in there only rather recently.

... J

Question: You mean today?

FS: Of course today, yes.

Question: This afternoon?

FS: This afternoon. Thank you very much indeed.

End/Wednesday, March 29, 1995

3

Public views sought on provision of legal services *****

A public consultation paper seeking the views of the public on how to improve the provision of legal services in Hong Kong was published by the Legal Department today (Wednesday).

Releasing details of the consultation paper at a press conference today, the Attorney General, Mr Jeremy Mathews, said the document covered a wide range of issues related to the provision of legal services and set out the Administration's provisional views in respect of them.

He emphasised that the paper looks at legal services from the angle of the consumer, and urged members of the public to read the paper and comment on it.

Mr Mathews explained that the issues discussed in the paper include rights of audience; lawyers' fees; legal representation in conveyancing transactions; restrictions on competition; advertising; quality and remedies; interest on solicitors' clients' accounts; touting and the payment of commissions; lawyers' business organisation; and entry to the legal profession by foreign lawyers.

Mr Mathews referred to the Law Society's paper on "The Future of the Legal Profession" published in January 1993 and the Bar Association's Position Paper published a year later. He said that in recent years, there had been much discussion, both within and outside the legal profession, about the structure of the profession and other issues such as the need to combat "touting", and scale fees for conveyancing.

"The time has come for the Government to take the lead in bringing together all these issues and in seeking the views of the community on them," Mr Mathews said.

Mr Mathews said we all knew the importance of the rule of law, the continuity of our legal system, and the vital role played by the legal profession.

4

"But if the legal services do not meet the needs of the consumer, or if they are too expensive, or inefficient, the community may lose faith not only in the legal profession but in our legal system. That is not a development we wish to see," he said.

"As Hong Kong prepares to enter into the 21st century, we must be sure that the legal services available are the best that can be provided in this dynamic, international city," he added.

Mr Mathews said there were many aspects of professional practice that were obsolete or obsolescent and had been abandoned elsewhere; many restrictions on the ways in which legal services might be offered; and many practices that were non-competitive and might not be in the public interest.

"However, we are interested in soliciting views. The recommendations we make are by no means cast in stone. We need public feedback. I hope the paper will provoke debate, not just amongst lawyers, but in the community at large on issues that go to the heart of our legal system," Mr Mathews said.

He noted that the consultation period would end on June 30 this year and called on members of the public and lawyers to express their views before then.

All written submissions should be sent to the Attorney General, Legal Department, 4th floor, High Block, Queensway Government Offices, 66 Queensway, Hong Kong, or transmitted by facsimile to the Attorney General on 2869 0720.

"Anyone who wishes to study the consultation paper in detail can obtain a copy, in either English or Chinese, from the District Offices or the Legal Department from next Monday," Mr Mathews said.

On the structure and practices of the legal profession, Mr Mathews said the paper had covered and made recommendations in respect of the rights of audience of solicitors, access to counsel, attendance on counsel, and the two-counsel rule.

5

He said if the recommendations made by the Administration on those matters were implemented, there would be no strong case for formally unifying the two branches of the profession.

Some of these recommendations are:

* It should be possible for solicitors to acquire rights of audience in all courts under statutory provisions similar to those in England and Scotland.

* Recognised professional bodies should have direct access to barristers, as in England and Australia.

* Barristers should be permitted to appear unattended in court if they consider that the absence of the solicitor or his representative will not prejudice the interests of the lay client or the interests of justice.

* The two-counsel rule, which prevents a Queen's Counsel from appearing as an advocate without a junior in any court or tribunal, should be abolished.

Some other recommendations made by the Administration in the paper are as follows:

Lawyers fees

The main recommendations in respect of lawyers' fees are that scale fees should be abolished in respect of conveyancing transactions, and that "conditional fees" should be possible in respect of certain proceedings.

A conditional fee arrangement is one whereby a lawyer agrees that he will receive no payment if the case is lost and that, if the case is won, he will receive a fee which does not exceed the normal fee by more than a permitted amount.

6

Legal representation in conveyancing transactions

It is recommended that joint legal representation of the parties to a sale and purchase, mortgage or lease of property should be prohibited, because of the potential conflict of interest involved. At the moment, developers and mortgagees normally require a consumer who is separately represented to pay their legal costs as well as his own. This practice increases the cost of separate representation and is considered to be contrary to the public interest. It is therefore recommended that such a requirement should be made legally invalid.

Restrictions on competition

The only services in which lawyers currently have a monopoly are those of advocacy in the courts, the conduct of litigation, and the undertaking of conveyancing and probate work. No relaxation is recommended in respect of advocacy and the conduct of litigation since the proper administration of justice in the courts depends upon the training and skills of those representing lay clients.

With regard to conveyancing and probate, the paper recommends that there should not be complete deregulation, as this could seriously undermine consumer protection. It is noted that reforms are underway in England to allow suitably qualified and regulated authorised persons to undertake this work, but it is too early to assess the effect of those reforms. In the circumstances, it is recommended that no change be made at this time, but that the issues may need to be addressed when the developments in England can be fully assessed.

Business organisation

At present, solicitors can practise only as sole practitioners or in partnership with other solicitors. The paper recommends that the Law Society should be able to permit solicitors to practise in multidisciplinary practices (that is, in partnership with other professionals) and that, subject to proper safeguards, solicitors should be permitted to incorporate their practices.

7

Recent developments in respect of the regulation of foreign lawyers in Hong Kong are discussed and the paper asks whether the time has come to allow solicitors to enter into partnerships with foreign lawyers.

Admission as a barrister

The paper describes the obligations that Hong Kong is under by virtue of the General Agreement on Trade in Services, and states that the present criteria for admission as a barrister need to be amended so as to be objective, reasonable, non- discriminatory and standards-based.

Advertising

The Administration considers that there should be a general relaxation of the rules restricting advertising. The only restriction on advertising and promotion by lawyers should be that it must not be false, misleading or deceptive.

The Bar Association should actively encourage the dissemination of information about the services offered and fees charged by barristers.

Miscellaneous

Other important recommendations are that -

* a statutory fidelity fund, financed by a levy on solicitors, should be established to protect consumers from the dishonesty of solicitors or their employees;

* solicitors should be required to pay interest to clients, where it is reasonable to do so, in respect of clients' money held by them; and

* barristers should be required to take out adequate indemnity insurance in respect of their liability for negligence.

End/Wednesday, March 29, 1995

8

Exchange Fund at end-1994 stands at $408 billion *****

In a statement to the Legislative Council today (Wednesday) the Financial Secretary, Sir Hamish Macleod, announced that the Exchange Fund stood at HK$408 billion at end-1994.

According to the unaudited figures, total assets of the Fund were up 17 per cent from HK$348 billion at end-1993. Of the total, HK$384 billion (US$49 billion) were denominated in foreign currencies, placing Hong Kong seventh in the world in overall foreign exchange reserves and second in the world in reserves per capita.

These reserves are equivalent to more than nine months retained imports of goods and five times the size of Hong Kong's note issue.

"The continued strength of the Fund gives added credibility to our long-standing commitment to defend the currency and its link with the US dollar," Sir Hamish said.

The accumulated earnings of the Fund increased by just over HK$1 billion to about HK$129 billion at end-1994, according to the unaudited figures.

Prevailing market conditions in bond markets of the world last year were very unfavourable for holders of fixed income assets.

The Fund, as a large net holder of assets, was not immune to this adverse investment climate.

However, the Hong Kong Monetary Authority (HKMA) took action to reset the Fund to a very defensive stance early in 1994 and this enabled the Fund to avoid the worst effects of the fall in markets.

"By careful defensive positioning we have managed not only to preserve 1993's exceptional gains but also to add to those gains," said Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority (HKMA).

"We are satisfied with the results."

9

In his address to the Legislative Council, Sir Hamish also announced that the balance sheet of the Fund would be published more frequently in a move towards improving the transparency of the Fund's operation. From now on, the accounts of the Fund will be published semi-annually.

The balance sheet of the Fund showing the overall size and accumulated surplus was revealed in July 1992 and the accounts have since then been published on an annual basis.

Today, the six-monthly data on the Fund for end-June 1993 and end-June 1994 were also disclosed.

The decision to publish the Fund's accounts more frequently underscores the Government's firm belief in the policy of greater openness and public accountability on important policy matters.

"More frequent disclosure of the Fund's position will also bring Hong Kong more into line with international practice," Sir Hamish said.

In another move toward greater accountability and transparency, the HKMA has adopted new accounting principles in the 1994 accounts.

Under these principles, all assets and liabilities of the Fund are now valued at mark to market values, thus removing the inconsistency between the accounting basis for assets and liabilities, and presenting a clearer picture of the Fund's position.

Under the old accounting principles, most assets were marked to market while liabilities were valued at cost.

For comparison, the 1993 accounts were restated to reflect the new accounting principles adopted.

ANNEX

Exchange Fund Abridged Balance Sheet

Based on Old Accounting Policies |

Based on New Accounting Policies

Notes DEC 94 (Unaudited) HK$ mn JUN 94 (Unaudited) HKlmn DEC 93 (Unaudited) HKSjnn DEC 93 (As previously published) HK$_mn JUN 93 (Unaudited)

ASSETS

Foreign Currency Assets 2 384,359 367,543 335,499 335.421 299,186

Hong Kong Dollar Assets 2 24.126 20.782 12,987 12,973 28,606

* 408.485 388,325 348.486 348.394 327.792

LIABILITIES

Certificates of Indebtedness 3 74,301 69,571 68,801 68,801 62.591

Fiscal Reserves Account 4 131,240 131,171 115,683 115,683 115,469

Coins in Circulation 3,372 2,573 2,604 2,604 2,394

Exchange Fund Bills and Notes 46,140 39,221 25,157 25,168 23,818

Balance of Banking System 5 ■- 2,208 2,858 1,385 1,385 2.690

Other Liabilities 6 22,614 18,819 7,314 7,135 5.232

— 279,875 264,213 220,944 220,776 212.194

■■■

ACCUMULATED SURPLUS . 128,610 124,112 127,542 127,618 115.598

11

Notes to the Abridged Accounts

The abridged accounts, including Notes to the Abridged Accounts, agree with the detailed audited accounts in all material aspects, except that some of the smaller items have been consolidated in the abridged accounts.

I. PRINCIPAL ACCOUNTING POLICIES

(a) VALUATION OF ASSETS AND LIABILITIES

In order to give a more appropriate presentation of the results and financial position of the Exchange Fund, the accounting policy with respect to the valuation of assets and liabilities has been changed in accordance with the recommendation of the International Accounting Standards Committee Exposure Draft' E48. In prior years, all assets were shown at market value, with the exception of fixed deposits, which were shown at cost. All liabililieswere shown at their face amount, with the exception of Exchange Fund Bills and Notes, which were shown at discounted or amortized value. This policy has been changed. All assets of the Exchange Fund, and its liabilities in respect of Exchange Fund Bills and Notes and other borrowings, are now shown at market value on the last day of each accounting period. The Fiscal Reserves Account is still shown at its face amount, with the difference between its market value and the face amount being included in other liabilities.

*

To reflect the above change in accounting policy, the abridged accounts for the year ended 31 December 1993 have been restated as follows:

As Previously

Revised Published Change

HK$mn HKSmn HK$mn

Assets 348.486 348.394 + 92

Liabilities 220.944 220.776 + 168

Net Assets 127.542 127,618 -76

The effect of the above restatement has been reflected io the 1993 Abridged Income and Expenditure Account and Abridged Balance Sheet. For practical reasons, the change of the accounting policy has not been retrospectively applied to periods prior to those included in these-Abridged Accounts.

(b) TRANSLATION OF FOREIGN CURRENCY ASSETS AND LIABILITIES

s US dollar assets and liabilities are translated into HK dollars at the linked exchange rate of US$1 = HKS7.80. Assets and liabilities in other foreign currencies are translated into HK dollars based on US dollar middle market cross rates in London at the close of business on the last business day of the accounting period.

(c) OFF BALANCE SHEET ITEMS

The Exchange Fund, as part of its reserves and monetary management operations, enters into interest rate swap contracts and foreign exchange contracts.

Interest rate swap contracts are contractual agreements between two counterparties for the exchange of periodic interest payments based on a notional principal amount and agreed-upon fixed and floating rates. Foreign exchange contracts include spot and forward contracts and involve the exchange of two currencies at a rate agreeable to the contracting parties.

These interest rate swap contracts and foreign exchange contracts are marked to market on the last day of each accounting period and any gains and losses are recognized in the Income and Expenditure Account as they arise.

12

2. ASSETS

(a) INVESTMENTS

The Fund is invested in interest-bearing deposits with banks in Hong Kong and overseas and in a variety of financial instruments, including bonds, notes, treasury bills and US equities.

(b) FOREIGN CURRENCY ASSETS DISTRIBUTION

A large proportion of the Fund’s foreign currency assets are held in US dollars. Apart from the US dollar, the Fund also holds assets denominated in other major foreign currencies, such as the Australian * dollar, Belgian franc, Canadian dollar, Danish krone, Deutschemark, Dutch guilder, the ECU, French franc, Japanese yen, pound sterling, Swiss franc, etc.

(c) LOCATION OF ASSETS

The assets are held in deposit, trustee and safe-keeping accounts with banks, central banks and custodial organisations situated in Hong Kong and other major financial centres.

3. CERTIFICATES OF INDEBTEDNESS

As backing for their bank note issues, the three note-issuing banks are required to hold non-interest bearing Certificates of Indebtedness issued by the Exchange Fund. Issuance and redemption of these Certificates are made against payments in US dollars at a fixed rate of US$1 = HKS7.80.

4. FISCAL RESERVES ACCOUNT

This comprises the fiscal reserves which have been transferred from the General Revenue Account, Capital Investment Fund, Loan Fund and Capital Works Reserve Fund of the Hong Kong Government to the Exchange Fund on an interest earning basis.

5. BALANCE OF BANKING SYSTEM

In accordance with the Accounting Arrangements introduced in July 1988, The Hongkong and Shanghai Banking Corporation Limited, as the Management Bank of the Clearing House of HKAB, is‘required to maintain a Clearing Account with the Exchange Fund. The balance in the Account, which represents the level of liquidity in the interbank market, is determined by the Monetary Authority. The Accounting Arrangements enable the Monetary Authority to maintain exchange rate stability more effectively by influencing the level of interbank liquidity through money market operations.

6. OTHER LIABILITIES

Other liabilities comprise expenses accrued at the year end, in the main interest due on transfers from fiscal reserves, other borrowings, provision for contingency related to Overseas Trust Bank Limited and the difference between the market value and the face amount of the Fiscal Reserves Account (see Note 1).

End/Wednesday, March 29, 1995

13

Joint Liaison Group to hold expert talks

* * * * *

The Sino-British Joint Liaison Group will hold their first round of expert talks on March 30 in Beijing to discuss the preparation for Hong Kong's transitional Budget and related matters.

The Chinese team will be led by Mr Chen Zuo'er, Chinese Representative on the Sino-British Joint Liaison Group. The British team will be led by Mr Donald Tsang, Secretary for the Treasury of the Hong Kong Government. They will be assisted by experts.

End/Wednesday, March 29, 1995

Agreement on Airport Bill reached with China

*****

In response to media enquiries on the Airport Bill, a Government spokesman said today (Wednesday): "Agreement has been reached with the Chinese side on the Airport Bill.

"The Government is now proceeding with the drafting of the Blue Bill, in line with the amendments agreed with the Chinese side and taking into account views of the members of the Legislative Council, the Airport Consultative Committee and members of the public.

"We will introduce the Blue Bill into the Legislative Council once it is ready, hopefully in early May."

End/Wednesday, March 29, 1995

14

Appointments to the Housing Authority *****

The Secretary for Housing, Mr Dominic S W Wong, announced today (Wednesday) that the Governor has approved the reappointments of the Chairman and 10 serving members to the Hong Kong Housing Authority. Three new members have also been appointed.

The Chairman of the Housing Authority, Ms Rosanna Wong, and serving members Ms Leung Wai- tung, Mr Victor So Hing-woh, Mr Hau Shui-pui, Mr Leung Chun-ying, Ms Ho On-nei, Mr Chan Kam-man, Mr Nicholas Brooke, Mr Daniel Lam Chun, Mr Yeung Ka-sing and Mr Anthony Wong Luen-kin have been reappointed for a further term of two years with effect from April 1, 1995.

Three new members, Mr Raymond Chow Wai-kam, an architect, Mr Eddy Fong Ching, an accountant, and Dr Joseph Lian Yi-zheng, an economist, have been appointed for a period of two years starting from the same date. They have been serving on some of the Authority's committees.

Mr Pao Ping-wing, and the Rev Sean Patrick Burke, will retire from the Authority after serving for 10 years and 11 years respectively.

"In view of the diverse nature of the work of the Housing Authority, ranging from construction, management, flat allocation, financial control, fund management and so on, a wide cross-section of membership is necessary," Mr Wong said.

"The appointments and re-appointments will provide a good balance of interests and expertise on the Housing Authority. These include members of the Legislative Council, Municipal Councils and District Boards, professionals, academics and public housing residents."

The appointments will be gazetted on Friday (March 31).

End/Wednesday, March 29, 1995

15

Government purchasing a "big business"

*****

The Government Supplies Department will call for tenders with an estimated total value of $4.7 billion in goods and services in the coming financial year.

Speaking at a roundtable luncheon of the Hong Kong General Chamber of Commerce today (Wednesday), the Director of Government Supplies, Mr Nigel Shipman, described the Government purchasing as "big business".

"This means that selling to the Hong Kong Government can be big business too, for those who can provide good quality products at competitive prices," he said.

He stressed that the Government was keen to encourage more competition in the tenders from local and overseas suppliers, without giving preference to any particular source of supply.

The aim is to select the product that represents best value for money for the Government.

"This aim is best secured through fair and open competition in our tendering system," he said.

Open tenders are used whenever the items to be purchased can be satisfactorily obtained in this way.

In cases where open tendering would not be an effective means of obtaining the requisite supplies, restricted or selective tender procedures are used.

Although most of the contracts are awarded on the basis of competitive tendering, Mr Shipman said: "We try to identify sources that offer reliability and value and seek long-term relationships with them."

16

Therefore, lists of registered suppliers are maintained in which local and overseas companies may apply for registration, he said.

An information centre for enquiries relating to supplier registration and tendering matters has been established.

Interested parties may contact Senior Supplies Officer (Procurement Administration), Government Supplies Department, 12 Oil Street, North Point, Hong Kong. The telephone number is 2802 6253.

The Government Supplies Department is the Hong Kong Government's principal purchasing agent for goods and certain services, serving over 80 Government departments and agencies, and many nongovernment organisations that are wholly or partly financed by the Government.

Last year the purchases of goods valued at $50,000 and above amounted to $4.2 billion.

End/Wednesday, March 29, 1995

Four lots of land up for auction * * ** *

The Lands Department will auction four lots of land in Kowloon and the New Territories tomorrow (Thursday).

The public auction will begin at 2.30 pm in the Concert Hall of the Hong Kong Cultural Centre, Tsim Sha Tsui.

The first lot for private residential use is located in King's Park Rise, and has an area of 15,644 square metres. The second residential lot is located in Sha Ha, Sai Kung, having an area of 900 square metres.

17

Covering an area of 16,301 square metres for residential use, the third lot is at Town Park Road North, Yuen Long.

The fourth lot situated in Area 11, at the junction of On Lai Street and On Yiu Street, Sha Tin, has an area of 9,600 square metres for (i) industrial or godown or both; or (ii) offices ancillary and directly related to an industrial operation; or any combination of (i) and (ii).

Attention News Editors:

Your representatives are invited to cover the auction.

A press area will be designated. Photographers are advised to bring along telephoto lenses.

End/Wednesday, March 29, 1995

Closure of Quarry Bay illegal structure sought *****

The Building Authority is seeking to close an unauthorised structure in Quarry Bay so that it can be demolished without endangering the occupants and the public. The unauthorised structure used as office premises is located on the third floor of a commercial building in 28 Hoi Chak Street.

iut.

A notice applying for a Closure Order from the District Court under the Buildings Ordinance on June 28 was posted on the premises today (Wednesday).

Demolition work is expected to start as soon as the Closure Order is issued.

End/Wednesday, March 29, 1995

18

Firemen praise for fighting factory fire * * * * *

Firemen were thanked for their high efficiency and professionalism in putting out a fire at a San Po Kong factory two weeks ago.

The administration officer of the Star Industrial Co. Ltd, Miss Veronica Grace Leung, today (Wednesday) called on Wong Tai Sin Fire Station to thank the fire-fighters personally.

During her visit, she presented a pennant to the Chief Fire Officer (Kowloon), Mr Henry Tang Siu, and a cash cheque to the Fire Services Welfare Fund in recognition of their distinguished performance.

The fire broke out at the factory, which was situated on the fifth floor of an industrial building at 25 Tai Yau Street, at 10.28 am on March 10. Firemen from Wong Tai Sin and Ma Tau Chung Fire Stations arrived at the scene three minutes later.

They immediately started battling the blaze and put it out within 13 minutes, causing little damage to the factory which could resume normal operation the same morning.

End/Wednesday, March 29,1995

Tai Po lot to let

* * * * *

The Lands Department is inviting tenders for the short-term tenancy of a piece of Government land in Tai Po.

Covering an area of 2,030 square metres, the lot is for use as a feepaying public car park and the tenancy is for two years, renewable quarterly.

Closing date for submission of tenders is noon, April 21.

19

Tender forms, tender notice and conditions may be obtained from the District Lands Office, Tai Po; 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 plan can also be inspected at these offices.

End/Wednesday, March 29, 1995

Flushing water cuts in southwest Kowloon and Tsuen Wan *****

. 1 A • !. ■ v / . • r

Flushing water supply to all premises in Tai Kok Tsui, Mong Kok, Yau Ma Tei and Tsim Sha Tsui will be temporarily suspended from 10 pm on Friday (March 31) to 6 am the following day to facilitate maintenance works.

• ..'i ■

Meanwhile, flushing water supply to some premises in Tsuen Wan will also be cut off from 10 pm on Saturday (April 1) to 7 am the next day to facilitate water mains connection.

The affected areas will include Yuen Tun Circuit, Sha Tsui Road, Tso Kung Street, Hoi Pa Street, Castle Peak Road, Tsuen King Circuit, On Yin Street, Tsuen King Garden, Tsuen Wan Centre, Allway Gardens and Tsuen Wan Adventist Hospital.

End/Wednesday, March 29, 1994

20

Hong Kong Monetary Authority money market operations

*****

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

Opening balance in the account 1,167 0930 +1,406

Closing balance in the account 2,292 1000 +1,572

Change attributable to : 1100 +1,597

Money market activity + 1,445 1200 +1,445

LAF today -320 1500 +1,445

1600 +1,445

LAF rate 4.25% bid/6.25% offer TWI 117.7 *-0.4* 29.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.15 14 months 2605 6.35 100.44 6.02

1 month 5.13 23 months 2702 7.50 102.05 6.43

3 months 5.40 28 months 3707 6.95 100.99 6.59

6 months 5.60 34 months 3801 8.00 103.20 6.85

12 months 5.90 60 months 5003 7.75 102.08 7.38

Total turnover of bills and bonds - $26,512 million

Closed March 29, 1995

End/Wednesday, March 29, 1995

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, March 29,1995

Contents Page No,

Legislative Council meeting:

Commitment to defending currency link unshaken.......................... 1

Sensible action to contain inflation.................................... 2

Solid support for simple tax system..................................... 3

Budget consultation needs mutual trust and understanding................ 4

FS thanks LegCo for constructive budget debate.......................... 5

Speech by Chief Secretary on budget debate.............................. 5

Speech by Secretary for Education and Manpower on budget debate..... 11

Speech by Secretary for Health and Welfare on budget debate............ 17

Speech by Secretary for Transport on budget debate..................... 24

/Speech by....

Contents

Page.Bto.

Speech by Secretary for Planning, Environment and Lands on budget debate 27

Speech by Secretary for Security on budget debate......................... 32

Speech by Secretary for Housing on budget debate.......................... 37

Speech by Secretary for Trade and Industry on budget debate............... 42

Speech by Secretary for Works on budget debate............................ 44

Criminal Procedure Ordinance.............................................. 46

Copyright (Amendment) Bill 1995 .......................................... 47

Inland Revenue (Amendment) Bill 1995 ..................................... 48

Dumping at Sea Bill passed................................................ 49

Prisoners' Education Trust Fund Bill...................................... 50

Prisoners' Education Trust Fund passes its 3rd reading................ 51

Internationally Protected Persons and Taking of Hostages Bill............. 52

Bus commuting times....................................................... 53

Shutting down of six Internet access providers............................ 58

Autotoll lanes.......................................<.................... 59

/Medical services ...

Contents

Page No.

Medical services for Peng Chau residents........................................ 60

Banking supervision............................................................. 61

Intellectual property rights in schools.......................................   63

Container Terminal 9 project.................................................... 65

Importation of architects....................................................... 67

Bus services for Tai Po and North District...................................... 69

Provident fund schemes of three universities.................................... 70

Circulation of ten-dollar coins................................................. 72

Voter registration for the new functional constituencies........................ 73

Labour Department's "chips allotment" system.................................... 75

Pickpocketing at border checkpoints............................................. 76

Investment returns of retirement schemes........................................ 77

»

Student loan scheme for the Open Learning Institute............................. 82

Election-related campaign activities............................................ 84

Assistance to operators and residents of aged homes............................. 85

Emergency psychiatric service................................................... 87

Investment of Govt fund

88

- 1 -

Commitment to defending currency link unshaken ♦ * * ♦ ♦ •

The continued strength of the Exchange Fund gives added credibility to the Government's long-standing commitment to defend the currency and its link with the US dollar, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday).

The commitment is unshaken by the fact that a couple of Legislative Council members questioned its usefulness, he said when concluding the debate on the second reading of the Appropriation Bill 1995.

This fact should be assessed against the background that the link has wide support both in this Chamber and in the wider community, and, helpfully, that China A too has made clear its support for the link, Sir Hamish added.

Although the figures are as yet unaudited, at the end of 1994, the Exchange Fund stood at $408 billion, an increase of 17% over the previous year.

Sir Hamish said 1994 was a very difficult year for fixed income markets, with every major market showing negative returns.

Despite this, the Fund's accumulated earnings rose by just over $1 billion to $129 billion.

Sir Hamish also announced the decision to publish the accounts of the Exchange Fund every six months in order to further increase its transparency.

"This more frequent disclosure of the Fund's position will also bring Hong Kong more into line with international practice," he said.

End/Wednesday, March 29, 1995

!

- 2 -

Sensible action to contain inflation ♦ ♦ ♦ ♦ ♦

The Government is doing all that it sensibly can to contain inflation, bearing in mind the sensitivities over labour importation, the Financial Secretary, the Hon Sir Hamish Macleod, told the Legislative Council in his concluding speech on the 1995/96 Budget.

"We exercise firm control over government expenditure. We avoid fuelling inflation through excessive tax cuts.

"We protect the weak and the vulnerable by adjusting Comprehensive Social Security Assistance payments annually in line with inflation, augmented by real increases from time to time," he said.

And in the longer term, the Government is increasing the supply of land and seeking to remove bottlenecks by investing in the development of infrastructure.

"And in this connection, I am heartened by the recent remarks of Director Lu Ping indicating that there should be good news on the financial arrangements for the airport in a few days," he said.

Sir Hamish pointed out that there were no easy answers to inflation, adding that "the community would not thank us if we reduced inflation by driving the economy into recession."

Turning to the reliability of unemployment statistics, he said the Government would look further at the statistics to try and ensure they accurately reflect the scale and the nature of the problem.

End/Wednesday, March 29, 1995

3

Solid support for simple tax system

*****

There is solid support for the Government's overall aim of maintaining a simple and predictable tax system, based on low tax rates, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday).

"But I entirely accept that this still leaves considerable scope for choices to be made, and improvements introduced."

"That said, one key to financial stability is likely to continue to be maintaining the revenue in real terms from a mix of sources, be they fees and charges, duties or taxes."

Sir Hamish said it was largely for this reason that he had proposed increases in duties this year in line with inflation.

He explained that the tax concessions this year sought to achieve a balance between generosity and caution; between leaving money in the pockets of taxpayers, especially those with extra financial responsibilities; and maintaining strong reserves.

"I am encouraged that most Members generally believe that I have found a reasonable balance, though obviously not agreeing in every respect, on every detail."

He said Legislative Council Members had made a number of useful suggestions about ways to further improve the tax system, for example, the need to provide greater relief for certain groups of taxpayer, and the need to broaden the tax base.

"We will look at all these suggestions carefully," he said.

•ffi

End/Wednesday, March 29, 1995

4

Budget consultation needs mutual trust and understanding

*****

The Financial Secretary, the Hon Sir Hamish Macleod, said consultation with China on the preparation of the 1997-98 Budget could only be achieved successfully through mutual trust and understanding.

"We start this exercise in a spirit of sincerity and goodwill," he said in his speech to conclude the debate on the 1995-96 Budget.

Sir Hamish said he was pleased to note the broad support for the proposal to co-operate fully with the Chinese side on the 1997-98 Budget.

He said he believed consultation on this transitional budget was entirely compatible with preserving the autonomy which the Special Administrative Region Government had in such matters under the Basic Law, but the Government must be very careful not to do anything which might weaken that autonomy.

The expert group provides a forum in which the Government can consult on the budget for 1997-98, with the aim of ensuring that public services will continue through the transfer of sovereignty without interruption.

During the preceding year, the team will be given ample opportunity to observe the budgetary and resource allocation processes to help them understand the system.

"We are entirely relaxed about the possible involvement of the Chief Executive-designate in the process, as suggested by some members.

"No doubt this and other matters can be resolved in the experts’ discussions,” he said.

End/Wednesday, March 29, 1995

5

FS thanks LegCo for constructive budget debate ♦ ♦ ♦ ♦ ♦

The Financial Secretary, the Hon Sir Hamish Macleod, in his final budget speech before retirement, thanked the Legislative Council members for "a particularly good-natured, thoughtful and constructive debate.”

■ ■ . i A. ■ Jii

"We face the challenges of the transition with cautious optimism. We have reason for confidence. Our past achievements are clear for all to see. Our economy is in good shape.

"But at the same time, we recognise that it will take hard work, imagination and perseverance to ensure continued success through to 1997 and beyond."

. • : - j

"I shall leave behind me a talented new team who will without doubt help Hong Kong reach new heights," he said.

Noting that Legislative Council members had stated very clearly their support for the budget consultation exercises he initiated, Sir Hamish assured them that genuine consultation would continue to be a keynote under his successor, Mr Donald Tsang.

End/Wednesday, March 29, 1995

Speech by Chief Secretary on budget debate ♦ ♦ ♦ ♦ ♦

Following is the speech by the Chief Secretary, the Hon Mrs Anson Chan, at the Legislative Council budget debate today (Wednesday):

Mr President,

• .........-t •'

I would like to start by thanking all Honourable Members who have spoken in this Budget debate. My colleagues and I are grateful for their constructive suggestions and words of encouragement.

6

I am pleased to know that Members generally approve of our policy of managing the public finances in a prudent manner. I am fully aware that some Members are concerned that Hong Kong needs to maintain its economic competitiveness and that the Government should not allow changes that would cause inefficiency and stifle economic growth. I am also aware that other Members expect us to do more to take care of our working population and the less fortunate members of our society, in particular our elderly population. Some people may think that these two objectives cannot be reconciled. I do not agree. I believe we can strike a balance between maintaining our competitive edge and devoting more of our resources to helping those in need. The Financial Secretary’s Budget does that admirably.

This afternoon, the Financial Secretary and my other colleagues will be replying to a number of points raised by Members during the debate, but I would now like to respond to Members' comments on the following subjects - Deregulation, the Efficiency of the Public Sector, the Civil Service, Equal opportunities, Funding for the Arts and the Judiciary.

Deregulation

The question of deregulation was raised by the Hon Martin Barrow and the Hon Vincent Cheng. Hong Kong, as a general rule, is not over-regulated. The Government firmly believes in intervening only when this will bring net economic and social benefits for the community. But there are inevitably areas where, over time, regulatory requirements - or the way in which these requirements are applied - may need to be reviewed. I have therefore asked the Efficiency Unit to consider how such a review might be carried out in a pragmatic way, drawing on the useful suggestions made by the Hon Martin Barrow.

Efficiency of the Public Sector

I briefed this Council in February on our comprehensive "Serving the Community" programme and described this as the basis on which the Government would develop a culture that was based on performance and on meeting the needs of our customers - by which we mean those whom we serve directly, either as individuals or as businesses. Much of this work, which is being co-ordinated by the Efficiency Unit, focuses on our developing management and service practices that are customer-friendly to enable people to conduct their business with the Government in an expedient and efficient manner.

7

The benefits of this approach are already filtering through, particularly in the areas of performance pledges, programme management, performance measurement and trading funds. All departments are being encouraged to pursue these initiatives where they are appropriate in their service area. And within this overall approach, departments are also encouraged to improve their services continuously, and to focus on specific services where this is necessary. This is an on-going programme of work that should go a long way towards allaying any fears that the Hon Moses Cheng and other Council Members may have about our commitment to improving overall efficiency.

The Hon David Li raised the related question of privatisation. I can assure him that the Hong Kong Government does not, as a general rule, aim to provide services that can be better provided for by the private sector. There are, however, areas where for various reasons we have developed certain services in the Government that might on the face of it be better carried out by the private sector. The Hon Member referred in this context to the Kowloon-Canton Railway Corporation, the Mass Transit Railway Corporation and the Post Office.

Of these, the first two enjoy considerable autonomy as public corporations and provide efficient and effective services, and we therefore have no plans to change their status. We do, however, intend to introduce a trading fund into the Post Office later this year so that it can operate on a more commercial basis, and thereby improve its levels of service, while remaining a government department. This follows the good results that we have obtained in the Land and Companies Registries since Members passed the Trading Funds Bill in 1993.

'' ll». U/k

The Civil Service

Turning to the Civil Service, I am grateful for the encouraging remarks made by the Hon Cheung Man-kwong, the Hon Martin Barrow and the Hon Jimmy McGregor. The civil service is one of the foundation stones of Hong Kong's stability and prosperity. Much has and will continue to be expected of it as society's aspirations grow and as 1997 comes closer. We must however be conscious of the need to do nothing to destabilise the service, or cause unease to our civil servants.

8

The civil service's strength rests on the fact that we have a body of highly motivated and loyal men and women who are committed to serving the community. We work as a team and important decisions are taken, in many instances, collectively in the interest of the community. I believe we have a first class team and I value the contribution that each individual officer makes. In developing our policies and programmes, we do our best to respond positively to the views of this Council and of the wider public. But it is not always possible to satisfy the interest of each and every sector, particularly in some of the more controversial policy areas. In such instances, it is incumbent upon us to explain why. The transition years place a particularly heavy burden on the Civil Service and create uncertainties which perhaps prey more heavily on the minds of civil servants than on other sectors of the community. More than ever it is crucial to maintain morale and stability within all ranks of the Civil Service if we are to continue to serve Hong Kong well. In this task, I hope we can count on the support and fair-mindeness of this Council and of the wider public including the media.

The Hon Cheung Man-kwong spoke of the future challenges facing civil servants. I can assure him that we are facing up squarely to the future. Localisation continues to be a firm policy of this administration. We are improving our capacity and ability to work in Chinese at all levels - but it is also important that we maintain and indeed strengthen our ability in English, in keeping with Hong Kong’s position as an international city. Training in all areas of Chinese is being considerably stepped up and opportunities taken to make us more user friendly to the public. Where legislation may state that English must be used, we are seeking to change this. The Secretary for the Civil Service has just set up a Working Group to see what more can be done in this general area. He will be looking into the suggestions made by the Honourable Member.

I can also assure the Hon Tang Siu-tong that growth in the civil service is kept on a very tight rein and is targeted at those areas where the community wants to see more done - for example, more policemen on the beat, better social services and a cleaner environment. To meet the community’s expectations we have had to become more productive and efficient, and we continue to explore ways to achieve this. Through our human resources management initiatives, we have delegated more power to Heads of Departments to enable them both to better manage and to bring the best out of their staff. This includes simplifying disciplinary procedures - for all levels of staff - in clear cut cases. Proper safeguards will of course continue to be in place.

9

Both the Hon Emily Lau and the Hon Tang Siu-tong questioned whether civil servants were worth their pay. The government’s aim is, and must remain, to be a good employer, to attract and retain individuals of quality , who are committed to serving the community. The fact that it is generally recognised that we have an efficient and effective civil service points to the success of this policy. But if we are to maintain this situation, we must provide a remuneration package that both Government officials - and the community which pays us - feel is reasonable.

We regularly review this package, and I believe that it is broadly appropriate to the circumstances of today. But we are aware of changing private sector practice and the need to modernise our terms and conditions of service. The new Common Terms of appointment, which we intend to implement as soon as possible following agreement with the Chinese side, recognise that some of our terms are out of date. To give one example, we do not propose to provide overseas education allowances to new appointees when the new Common Terms are implemented. But we need to maintain the morale and the integrity of the civil service in the next few crucial years ahead -and beyond that. Reducing benefits just for the sake of it would surely be counterproductive.

Equal Opponumli^

I fully agree with the Hon Anna Wu that in principle each individual should be given an equal opportunity in society. But anti-discrimination legislation is a relatively new area of law in Hong Kong. It will affect practically every individual in almost all areas of activity. The social and economic implications of such legislation are real and significant and should not be overlooked.

We therefore consider it only sensible to adopt a step by step approach. We have identified a clear need for legislation against discrimination on the grounds of sex and disability, and two Bills have been prepared to that effect We will also set up a statutory Equal Opportunities Commission to take on the enforcement functions provided in this legislation.

As far as other types of discrimination are concerned, we do not think it is wise to proceed down the legislative route without first having had a chance to examine in detail whether action is really needed in these areas, and if so. what the best approach would be. In this regard, I believe that Members are particularly concerned about three types of discrimination - on the grounds of age, family status and sexual preference. The Government is prepared to look into these three areas. As a first step, we propose to carry out research to determine whether a problem exists in these areas, and if so what the size and nature of the problem is.

10

Funding for the Arts

I would also like to say a few words on funding for the Arts. Since the Governor announced in his 1993 Policy Address our aim to promote further culture and the arts in Hong Kong, we have taken steps to set up the Hong Kong Arts Development Council and have provided it with a grant of $100 million as seed money. We have also placed at the disposal of the Council a further $30 million from the Sir David Trench Arts Development Fund. To date, only some $10.6 million from these two funds has been spent. The Council therefore has ample resources at its disposal for promoting the arts and culture in the next few years. I do not believe that it is necessary to provide additional public funds for arts promotion in the current budget. I am sure that the Hon Man Sai-cheong, and those other members who are interested in promoting the arts in Hong Kong and have been following the activities of the Arts Development Council, are well aware that the Council is currently drawing up a Five-Year Strategic Plan. The justification for any additional funding for the arts will be looked at when this Plan is finalised, which I understand will be towards the end of this year.

The Judiciary

Finally I would like to turn to the Judiciary. As the Chief Justice has said on many occasions, the Judiciary will continue to press ahead with its "quiet management revolution" to ensure that Hong Kong's system of justice is effective and efficient. This is clearly an important priority. The rule of law, and its administration by a strong, independent and credible Judiciary, underpins Hong Kong's long- term prosperity and stability.

The Hon Moses Cheng said that technology must be complemented by adequate support staff and training. I entirely agree. One of the Judiciary's immediate priorities is indeed the training of its non-judicial staff so as to enhance their professionalism job satisfaction and career development.

The Judiciary is also fully aware of Mr Cheng's concern about what he called the "chronic shortage of judges". With the planned increase in judicial manpower in 1995-96, the fine-tuning of listing and the streamlining of court procedures, the Judiciary's manpower situation should be manageable. The Judiciary will, of course, closely monitor the situation to ensure that there is sufficient judicial manpower to cope with the workload facing the courts.

11

The Chief Justice is fully committed to stepping up the pace of localisation of the Bench. Apart from encouraging suitable practitioners from the private sector to take up a judicial career, the Judiciary is also providing more acting and training opportunities for local judicial officers to gain wider exposure and experience. The Judiciary is encouraged by the growing interest that members of the legal professions in Hong Kong have shown in possible judicial appointments.

Mr President, with these remarks, 1 commend the Bill to Members.

End/Wednesday, March 29. 1995

Speech by Secretary for Education and Manpower on budget debate ♦ ♦ ♦ * *

Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, at the Legislative Council budget debate today (Wednesday):

Mr President,

I am grateful for the many relevant comments and helpful suggestions from Members on the education and manpower programmes in the Debate last week. I wish to respond to the main concerns expressed by Members this afternoon. First education.

Education

One common concern is about the relatively smaller percentage increase in recurrent spending on the school sector than in the tertiary sector in the coming year, and its possible impact on the quality of school education, in particular primary education. As Members arc aware, of a total recurrent expenditure of $30.3 billion included in the 1995-96 Draft Estimates, 62% or $18.8 billion is for schools, 34% or $10.3 billion for the tertiary sector and 4% or $1.2 billion for vocational training. It is obvious that the school sector has continued to enjoy a major share, reflecting fully its fundamental importance in our education system. This has been the pattern for the past few years and is expected to continue. The fact that the past five years have seen a more steep increase in spending in the tertiary sector is to achieve the policy objective of providing, by 1994-95, first year first degree places for at least 18% of the relevant age group. But this has certainly not been achieved at the expense of the school sector.

12

School Education

On the contrary, spending for the school sector has continued to grow - by $2,275 million or a real increase of 3.24% in the coming year. Although smaller than the overall real increase of 4.9% for the education programme as a whole, such increase is nevertheless significant, particularly when viewed against a declining school population - a forecast decrease of 11,000 school children in 1995-96.

Indeed, the continued allocation of additional resources for the school sector has ensured the timely implementation of various improvement measures. Let me list some of these major improvements.

First the upgrading of another 180 primary school teacher posts to graduate level.

Second, the extension of the class-size reduction programme from 40 to 35 to Primary Three - or to 30 for those schools adopting the activity approach.

Third, the introduction of the Target Oriented Curriculum for Chinese, English and Mathematics in Primary One classes in over 70 schools.

Fourth, continued special assistance for low achievers by providing 60 more graduate teachers to schools with a higher proportion of low achievers this September, in addition to helping the schools tailor their curriculum to the needs of such students.

Fifth, capital spending of $1.3 billion to improve the teaching and learning environment in 240 schools - 130 primary and 110 secondary - between now and 1997. Among the many extra facilities, this improvement programme will provide an additional 160 secondary classrooms. Together with the new secondary schools coming on stream in the next few years, this will eliminate most if not all of the floating classes now operating at Secondary One to Five.

And last but not least, the Hong Kong Institute of Education introduced in 1994-95 separate Certificate Courses in Education for primary and secondary school teachers in their first major effort to upgrade the quality of our school teachers.

Another major area of concern is on the introduction of some form of direct subsidy to kindergartens. I wish to reassure Members that this is our top priority within the Government. We are working hard to meet the target implementation date in September. We have already made substantial progress in the formulation of detailed proposals. Together with the Secretary for Health and Welfare and taking the advice of the Working Party on Kindergarten Education, we are currently examining the implications of the kindergarten subsidy scheme on the child care sector and necessary improvements. We expect to complete this study within April and seek policy approval as soon as possible thereafter.

13

Another area of concern is on the temporary shortage of Secondary One places in parts of the New Territories. This is being tackled actively and in a practicable manner. As Members understand already, to ensure cost-effectiveness, secondary school places are provided on a territory-wide basis, with shortfalls in one district being met by surpluses in others, and new schools built only to meet persistent shortfalls in the territory as a whole. To build all secondary schools on a district basis would have meant a complete wasteful use of resources. Meanwhile, district shortfalls arc being tackled urgently by a combination of measures, including the advance opening of new schools, operating extra classes and allocating extra students per class in existing schools. Schools are of course given extra resources and assistance to meet these additional requirements. In the longer term, new schools in the pipeline should provide the more permanent solution.

Tertiary Education

Some Members have commented on the quality of tertiary education. The tertiary institutions have experienced a period of rapid expansion and development over the past six or seven years, but in 1994-95 we have achieved our target of 14,500 first year first degree places for 18% of the age group. Thereafter it would be a period of consolidation in the growth of first year places. The challenge has been and remain to ensure that academic standards are maintained at internationally recognised levels. More emphasis will be therefore placed on improving the quality of teaching. To this end, the University Grants Committee will conduct academic process audits of each of the institutions over the next few years. These audits will review the institutions’ teaching and learning quality assurance and improvement processes, and involve visits to institutions to review departmental performance as well as faculty and student perceptions of these processes.

Several Members have raised concern about a number of management issues within the institutions concerned. As Members are aware, tertiary' institutions are independent statutory bodies with autonomy in respect of their internal management of staff. We hold them fully accountable, for example, for the terms and conditions of employment, the discipline and management of staff and the viability of their superannuation schemes. The governing councils of these institutions take full responsibility under the respective ordinances for these duties. The Government accepts that there should be a high degree of transparency in these processes. The University Grants Committee in its advisory role on funding and policy development will continue its monitoring role in these respects.

14

Employment

Policy

The Government's basic labour policy is to ensure that there is a stable, well-trained and well-motivated workforce to support economic growth, and that Hong Kong maintains a level of labour standards broadly comparable to those of its neighbouring countries with similar economic development and socio-cultural backgrounds. To this end, we are committed to -

* providing well-trained personnel through the courses offered by our tertiary institutions and the Vocational Training Council;

* promoting the health, welfare and safety of the working population;

* proriioting harmonious labour relations; and

* safeguarding the rights and benefits of employees.

To achieve these policy objectives involves taking account of the intricate and dynamic combinations of interests between the vast number of employers and employees and striking a balance in the light of the changing economic situations and circumstances, and expectations of our community. It is not an easy task. Over the years, the step by step approach we have taken on labour and employment issues has served Hong Kong well. In the pursuit of our policy objectives, we will continue with this approach in the best interests of the public.

Employment / Importation of Labour

Members have commented on the employment situation in Hong Kong and questions have been raised on the reliability of our employment statistics. These statistics are collected by the Census and Statistics Department through the General Household Survey. The concepts and dellnitions used in surveys to measure employment, underemployment and unemployment follow closely the recommendations of the International Labour Organisation. The statistics are scientifically obtained and are reliable for comparison and projection purposes. Nevertheless, we recognise the need for better coverage and more indepth, detailed analysis of the employment statistics and will discuss the feasibility of further improvement with the Census and Statistics Department.

15

The findings of the latest General Household Survey confirm that our labour market remains tight, with consistently low unemployment and underemployment rates. Many sectors are suffering from shortage of labour. The labour importation schemes are devised to ease temporary bottlenecks in our labour market in order to sustain economic growth. The need for the schemes was reaffirmed by this Council at a recent debate. During last week's debate, again many Members raised the same views on the schemes. I agree that the schemes must be flexible and targeted to meet the specific needs of industries where there is a shortage of labour. Members' comments on the need to enhance the effectiveness in the allocation of quota under the General Scheme have been carefully noted. We will look into these suggestions in our review on the operation of the scheme and consult the Labour Advisory Board and this Council over the next six months, so that any necessary improvements could be incorporated into the scheme before the next allocation exercise.

Members have also expressed concern about the possible impact of imported labour on the employment opportunities of local workers. The stringent vetting and monitoring measures under the current schemes are precisely to safeguard the interests of local workers by ensuring that they are given first priority in filling vacancies and that they will not be displaced by imported workers through abuse of the system. Every application for imported workers is meticulously scrutinised to ensure that there is a genuine need to do so. Furthermore, we arc bringing together contractors and local construction workers for Airport Core Programme projects to ensure that our workforce are made fully aware of the job opportunities available. This is why a Special Placement Service has been launched to help local workers find jobs related to ACP projects. The Special Placement drive received over 780 enquiries since it started operation on 20 March and we have now been able to arrange job interviews for over 300 workers.

That said, we are not indifferent to the unemployment situation and will continue to do our best to help those workers who encounter difficulties in finding jobs. We have not forgotten for one moment that the unemployment rates, low as they are, represent real people, majority of whom are displaced workers affected by the structural changes in our economy. These people want to work and we respect that. We believe that the solution lies in job placement assistance and retraining.

The Local Employment Services of the Labour Department provide free service to unemployed persons by matching employers with applicants. We have also set up the Employees Retraining Board to retrain workers with new, marketable skills. To effect a synergy of these services, we will launch this week a Pilot Employment Placement Matching Scheme which is an integration of the Local Employment Services and the Employees Retraining Scheme. Under this new Scheme, an unemployed persons over the age of 30 can enlist under a Special Register at 5 Local Employment Services offices. Through direct job referrals and tailor-made retraining, we seek to maximise the employment opportunities of the registrants. We shall review the effectiveness of this new scheme at the end of this year.

16

Industrial Safely

Whilst our record in recent years improved gradually, the accident rate particularly in construction sites is still far from acceptable A comprehensive review of industrial safety is now being conducted The Steering Group on Industrial Safety which I chair, supported by two working groups is making cood progress in its deliberations on measures to improve and promote industrial safetx As part of the review, visits to Australia. Japan and Singapore were undertaken to learn from the merits of these systems and policies in preventing industrial accidents and promoting a safety culture. Specialist advice has been provided to the Steering Group by an expert on industrial safety with in-depth knowledge of Hong Kong A firm of management consultants has just been appointed to carry out a comprehensive review on the organisational structure, functioning and establishmeni of the Factory Inspectorate.

We are on track to complete the review bv the summer and will publish our proposals for consultation later in the year

Retirement Protection

Finally, a progress on retirement protection since this < ouncil pa^ed a motion on 8 March urging Government to introduce as expeditiously as possible mandatory, privately managed occupational retirement protection system we have been making good progress. We have established a multi-disciplinary I ask Force dedicated to follow up on this proposal. A consultant team has just been appointed to advise us on the detailed aspects of the MPF We expect to receive preliminary findings in early April, and the final report by 18 April We shall keep thi< ( ouncil informed of progress through the Manpower Panel

End/Wednesday. March 29 995

17

Speech by Secretary for Health and Welfare on budget debate *****

Following is the speech by the Secretary for Health and Welfare, Mrs Katherine Fok, on budget debate in the Legislative Council today (Wednesday):

Mr President,

I have good reason to be pleased with this year's Budget and most Members have also welcomed the increasingly significant proportion of Government's spending which is being channelled to the health and welfare sectors. Since 1991/92, the proportion of total government spending given to these sectors has grown from just under 16% to over 18%. Of the $37 billion allocated for health and welfare next year, $22.1 billion is for health and $14.9 billion is for welfare. Although one Member queried the precise level of increase this represents over last year. I can confirm that these figures represent in real terms, that is over and above inflation, increases of 7.7% for health and a massive 24.1% for welfare.

These are significant increases reflecting the priority the Administration is placing in particular on upgrading our welfare services and support. But they are increases we can afford. Faxes are not being increased to pay for these improvements; we can afford them while remaining in line with our longstanding expenditure guidelines.

I note one Member has urged us to proceed more gradually. I hope what 1 have just said will reassure him and others that, while we are engaged in a necessary expansion, especially of our welfare services, we are doing so in a responsible and affordable way.

Another Member was concerned that after 1997 we should not continue to rely on the Lotteries Fund for recurrent welfare expenditure. I would like to repeat our assurance, first given in 1992 when we sought Finance Committee's approval for the $2.3 billion injection into the fund, that the General Revenue Account will absorb this expenditure after 1996/97. We do not see any difficulty in this. Indeed, we have already taken this into account in our current five year forecast (1994/95 to 1998/99).

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Not all that we propose to do in this area needs new money. We are also actively engaged in seeking new ways of redeploying existing resources to provide new services and to recognise the changing priorities for services. An important part of re-examining the way in which we spend the public’s money on welfare services will be the major study we have just started on the way we subvent non-governmental organizations (NGO’s) who provide services on our behalf. I can assure Mr Hui Yin-fat. amongst others, that this Review will be conducted with the fullest possible involvement of the NGO’s. It is in the interest of both Government and the NGO’s that we get these arrangements right so that services to those who need them are provided in a cost effective and professional way.

Social Security Assistance

Many members raised the issue of what we should be doing to ease the problems faced by growing numbers of elderly persons. With the recent debate over the most appropriate form of retirement protection system, it is understandable that attention has focussed in parallel on the most appropriate forms and level of social security assistance available for elderly persons. Members have pointed out that there will be some in lower income groups who may not necessarily receive adequate financial support in their old age from the mandatory privately managed provident fund (the MPF) system. Hence, calls for higher levels of payments for elderly persons under the Comprehensive Social Security Assistance (the CSSA) scheme or under the Old Age Allowance scheme.

The Review we are conducting of CSSA arrangements will be thorough and fair. It will examine all aspects of this scheme, including, for example, the way in which ’absence rules' are applied. We fully intend to complete and implement it in the shortest possible timeframe. But the need for data from the Household Expenditure Survey places real constraints on how fast the Review can progress. Although the results of the Review will become available only late in the preparations for the 1996/97 budget, we shall do all we can to ensure funding is made available to start to implement in that financial year most of the changes recommended. That is why the Financial Secretary has agreed that some funds should be reserved for this purpose before the Review is completed.

Our aim will be to ensure that all elderly persons genuinely in need of financial support arc given that support through the CSSA system. We do not believe that the Old Age Allowance system is the appropriate vehicle for providing financial support to elderly persons in need because it is not means-tested. Some Members have called for substantial increases in this allowance and Mr McGregor has also suggested that it should become means-tested. Any substantial increase in the allowance without a means-test would create a heavy burden on the taxpayer and use up funds which could be better spent on direct services or CSSA payments channelled to those in need.

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A means-tested old age allowance would, in effect, become the same as a CSSA payment which is means-tested and paid to those in need. As Christine Loh said, the important point is to recognise that there may be elderly persons ineligible to receive sufficient financial support in due course from the new MPF system but who currently are also ineligible for CSSA support. If we can attempt to bridge or at least greatly narrow that gap in our Review of CSSA payments to elderly persons, I believe we shall have addressed most of Members' concerns in this regard.

Services for the Elderly.

But we must remember that the Government does much more than provide cash payments to elderly persons in need. We provide a comprehensive range of welfare and health support services for them at no cost or only a token charge. We shall be spending $1.1 billion on direct services for the elderly in 1995/96 - a 20% increase over last year. I have noted that some Members wish us to do even more. Before we expand further, we must analyse carefully the needs of elderly persons. A study on this subject later this year will provide us with useful information on the specific needs of elderly persons for welfare services. As for Elderly Health Centres. I want to repeat our commitment to providing a total of seven health centres for our elderly citizens by 1997. The first one started operation in 1994. Three more will do so in the coming year.

Children

Let me turn now to that other very vulnerable age group in our society -children. We aim to provide the support needed for children to develop fully and safely especially when parental support, for one reason or another, is inadequate or not available at all. Our services recognize that some parents are often not able to care for their children during the day and we have in hand an ambitious expansion of Child Care Centre places to cope with this. In 1995/96 we shall provide a further 1.400 places in day nurseries. 250 places in day creches and 225 places in occasional day care units for children who may need less than full day care. 1 can assure Mr Li Wah-ming that we remain on target to meet the Government's commitment to provide in a phased programme a total of 5.600 additional child care places between 1993/94 and 1996/97.

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Child Care Centres

Many Members mentioned the interface between kindergartens and child care centres. The Working Party on Kindergarten Education, which includes representatives from both the kindergarten and Child Care Centre sectors, has been tasked with reviewing, as its first priority, the qualifications, training and pay of workers in both sectors. Our aim is for the Administration to decide the way forward on those key issues well before the subsidy to kindergartens starts in September and, in this way, avoid any adverse impact the subsidy scheme may have on the Child Care sector.

In dealing with problems faced by children, our priority is prevention. And in this case, prevention means doing all we can to support the family which should, when functioning well, provide the best support for a child. For this reason in 1995/96, we are providing 92 more family case workers and 9 more clinical psychologists to improve counselling services. But I agree with Members, including Messrs Eric Li and Tam Yjji- chung, that the caseloads of our case workers remain too high in spite of our ongoing efforts to increase staff resources to bring loads down. The problem, of course, is that with increasing public awareness of our services and of the nature of the problems involved which, in turn, reflects the success of our own educational programmes, the demand for services is increasing. And this unfortunately neutralises our best efforts to bring caseloads down by increasing staff numbers. I know the Director of Social Welfare would like to do more in this regard and I shall be examining with him options for diverting even more of our welfare resources towards tackling the caseload problem in future.

Rehabilitation

On rehabilitation, I am grateful to a number of Members for their concern about employment for people with a disability. We believe that our goal of community acceptance would be undermined if people with a disability were only given jobs because their employers would get tax concessions. But wc arc firmly committed to increase job opportunities for people with a disability. For example, this month we are providing 330 more supported employment places. And our ongoing public education programmes combined with the Disability Discrimination Bill, which we will introduce into this Council shortly, will be powerful tools in promoting further integration.

I should now like to turn to healthcare -

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Monitoring of the Hospital Authority

In response to the calls for greater transparency, Hon Members would have noticed that positive efforts have been made to expand the scope of information available in the Draft Estimates regarding the Hospital Authority’s expenditure. The Authority was established to transform hospital management to enhance effectiveness and efficiency in service delivery, to improve the hospital environment and introduce a patient-centred culture to meet patients' needs, to encourage public participation and to ensure accountability in the public hospital system. Its efforts to strengthen its interface with the community are evident from the work of the Hospital Governing Committees and Regional Advisory Committees, and the many community relations activities organised by hospitals on an ongoing basis. Recent examples include the highly successful Open Day at Tuen Mun Hospital and the Nursing Promotion Campaign opened last week.

Much has been achieved by the Hospital Authority in the past few years to revitalise our public hospital system and to introduce a patient centred culture. Visible improvements can be seen in the facilities, standard of accommodation, stafi attitude, quality of service and communication with the general public. However, it is now an appropriate time to review the progress so far and explore the way forward. I will bear in mind the views expressed by Honourable Members when doing this.

Government sees an important and continuing role for private hospitals and wishes to maintain a vigorous private sector providing greater choice in healthcare services. In keeping with Government's policy that no one should be denied adequate healthcare through lack of means, the I lospital Authority is there provides a safety net for those in need who require public hospital services. But it is not intended to be the sole provider of such services.

Remuneration Package of Hospital Authority Employees

There is a common perception that the remuneration package of Hospital Authority employees may be too generous. Let me take the opportunity to clarify some of the points raised by Members.

The terms and conditions offered to former civil servants joining the Hospital Authority were drawn up according to the broad principle that there will be no additional cost to the employer. The main difference with the salary package offered to civil servants is in the form of payment due to the encashment of fringe benefits. The encashment of benefits was necessary to recognise the independent statutory status of the Authority and to facilitate the integration of staff working in former subvented hospitals.

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The choice of whether to opt for the new employment terms is very much a personal decision, as indicated by the fact that over 8,000 (41%) civil servants working in the Hospital Authority have chosen to retain their present status. Given the prevalence of concern among Honourable Members, we will initiate discussion with the Authority on questions related to staff employment terms. We must, however, proceed with caution in the interest of staff morale and quality of service.

Health Care and Promotion Fund

Turning to primary health care, I have emphasised many times in the past the importance which I attach to the shift in focus towards promotion of health and prevention of disease. I am therefore pleased and encouraged by Honourable Members’ support for the Health Care and Promotion Fund, which will provide a considerable boost to this process. The purpose of the Fund is to finance worthwhile projects relating to health promotion, preventive care and related research as well as for treatment of rare diseases. It will have a capital injection of $80 million.

Health Education

Dr Hon Huang Chcn-ya quite rightly pointed out the importance of health education. Apart from the Health Care and Promotion Fund, the new Student Health Service, woman health centres, elderly health centres and the many activities organised by the Department of Health, the Hospital Authority and many community organisations, form an integrated and comprehensive approach to improving the general health of our community.

Preventive Healthcare Services

On disease prevention, we agree with the views expressed by Hon Members that our healthcare policy should focus increasingly on the prevention of modem "killer” diseases such as cancer, stroke and heart disease. We are therefore aiming to reduce the incidence of such diseases. However, it is necessary to bear in mind that the general health of the community depends not only on our healthcare services, but also other factors, such as housing, education, environment, nutrition and lifestyle. These do not normally show their effect in the short term. It is. therefore, often difficult to set measurable health targets. However, we remain fully committed to strengthening our activities in this area.

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We share Members’ view that we should also look to alternative medicine as a cost effective way to provide preventive healthcare services. We are taking steps to recognise, promote and regulate traditional Chinese medicine so that it can develop in a more healthy, systematic and proactive manner for the benefit of the community. This is part of our philosophy of encouraging the private sector to provide primary health care. The Preparatory Committee on Chinese Medicine has just been formed and I look forward to the Committee’s advice on a number of important issues related to this complex subject.

Nursing Degree Programme

I am pleased to note Hon Michael Ho's support for our plans to increase the number of first year first degree places for school leavers wishing to start their career in the nursing profession. This could not have been possible without the prompt response and co-operation by the University Grants Committee and individual tertiary' institutions. The phased increase from 40 to 180 places is already a significant achievement, and we will review the need for further expansion of this programme in the light of prevailing demand and manpower requirements.

Conclusion

I should like to conclude by referring to one of the most significant new initiatives for 1995 contained in the Budget. Most Members have welcomed the $2.5 billion which has been earmarked by the Financial Secretary to purchase premises over the next two years for welfare and rehabilitation services. This is a positive response to a major problem we had been facing in keeping our ambitious expansion programme on track. We will now be able to meet our targets by 1997 for elderly, family and child care services, and for rehabilitation one year later.

I thank Members for their support for the ambitious programme of work which 1 shall be undertaking in 1995/96 and I look forward to significant progress being made in that year.

Thank you.

End/Wednesday. March 29. 1995

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Speech by Secretary for Transport on budget debate *****

Following is the speech by the Secretary for Transport, Mr Haider Barma, on budget debate in the Legislative Council today (Wednesday):

Mr President,

May I start by thanking especially the Honourable Miriam Lau and the Honourable Zachary Wong for devoting their entire speech to transport-related issues. In so doing, they have reflected the views of their respective parties. This is most helpful. May I also acknowledge the constructive comments made by other Members and the interest they have shown during the special session of the Finance Committee on the transport portfolio.

Many of the points raised by Members in this debate have been raised by them before. No doubt this has been for emphasis and, indeed, most comments have focused on our proposals in the two strategy documents on traffic congestion and railway development.

It was. perhaps, to be expected that, as in past years, some members of the public queued up for hours at our licensing offices in an attempt to beat ’’anticipated’’ increases in vehicle licence fees. But what I found a little amusing was the few quizzical looks in this Chamber when several Members realised there was in fact no mention by the Financial Secretary in his Budget Speech of any move in that direction. The simple fact is that the proposed increases in annual licence fees and first registration tax are purely for transport reasons and not to generate revenue per se. I have made this point very clear on general occasions and indeed during the motion debate on traffic congestion. At this point in time, all 1 can say is that we are now evaluating feedback from the consultation exercise and we shall certainly take careful note of the points made by Honourable Members. 1 expect to be able to present firm recommendations on the Administration's package to tackle traffic congestion, or perhaps announce decisions, within the next 2 to 3 months. This will, of course include the implementation of electronic road pricing which has received such strong support. Honourable Members will appreciate and must recognise that fiscal, and legislative, measures require the approval of this Council and if we are to tackle traffic congestion, as we must, then unpopular decisions are unavoidable, difficult though they may be in an election year.

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Some Members have continued to plead that we should build more roads. I make no apology for stressing, once again, that we can never hope to build our way out of congestion. In reading a recent article, I have learnt that transport theorists have coined a new phrase for the phenomenon experienced in major cities when new roads are built. They call it ’’triple convergence" because when a new road is opened, what happens is that it immediately draws extra rush hour traffic

a) first from drivers who formerly used alternative routes;

b) second from drivers who formerly commuted during off peak periods, and

c) third from drivers who formerly relied on mass transport.

We have proof of this theory right here in Hong Kong. Route 6 from Sha Tin to the Eastern part of Hong Kong Island, via Tate’s Cairn Tunnel and the Eastern Harbour Crossing was completed in 1991 and reached capacity 2 years later. Ridership on the KCR dropped significantly in the same period. More roads means more cars. Of course this does not mean that we should not build more roads. In fact we are committed to the biggest road building programme in the territory’s history, with $30 billion to be spent over the next 5 years.

In response to a point made by one Member, let me make it clear that our success in attracting private sector investment for transport infrastructure, for example the Western Harbour Crossing and the Route 3 (Country Park Section), has not and will not be used as an excuse for reducing expenditure on roads under the Public Works Programme. Let me set the record straight. The overall reduction in expenditure on transport in the 1995/96 estimates was due entirely to the fact that spending on many Airport Core Projects has peaked. Expenditure on non ACP projects will actually rise by almost 30% in the coming year.

In particular I am glad that we have been able to make progress with the Duplicate Tsing Yi South Bridge. We will be approaching Finance Committee within the next couple of months for funds, so that work can start on the project at the end of this year. The bridge should be completed some time in 1998.

I have noted Members’ concerns about the need for providing more parking facilities. This is being addressed through the Parking Demand Study, which is now expected to be completed by the middle of the year. I fully support the "park and ride" concept and we will see how best this can be implemented. But the difficulties in finding suitable sites in urban areas is a constraint and should be recognised. Also it would be naive to regard the provision of better parking facilities as the ultimate solution to the congestion problem, although of course this may be beneficial in some respects.

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I now turn to our top three priorities for new railway systems which we plan to implement by the year 2001. We have already invited the KCRC and the MTRC to submit proposals for the Western Corridor and the Tseung Kwan O MTR extension respectively and require expert advice on how best to pursue the Ma On Shan to Tai Wai line and the Hung Hom to Tsim Sha Tsui KCR extension. The workload is very heavy. The fact is that we have but a very small establishment of professional staff in the Railway Division in Highways Department and in my view the most cost effective way of proceeding is to engage consultants. Unfortunately our submission for $45 million was turned down by Finance Committee. 1 intend to revert shortly with further justification. At this point, to put this extra expenditure in perspective, the $45 million being sought is less than a meagre 0.1% of the $50 billion 1994 price tag for our top 3 priority railways.

Several Members have repeatedly requested that the Western Corridor spur line should extend to Tuen Mun Central. I am prepared to ask the KCRC to take a fresh look at this option in the context of their own studies which are being undertaken in firming up their proposals. I hope that this reassures Members that we are doing ail we can to respond to the views on this matter.

Some Members have also expressed concern that other railway proposals, notably on Flong Kong Island, have not been recommended for early implementation as part of the Railway Development Strategy. But the fact is that we must prioritise our efforts, and the Administration is satisfied that the three projects already designated for early implementation, are in fact the most urgent projects and those which deserve our immediate attention. The need for other railway projects will be reviewed.

The need to provide more infrastructure for cross border traffic is high on our agenda. For example, the Western Corridor Railway will greatly improve the flow of passengers and freight across the border. The Route 3 (Country Park Section) will shorten journey times from the border to the container port. And we have on going plans to improve and upgrade our other the border road crossing points. Moreover, the Infrastructure Co- ordinating Committee provides a practical working forum for discussion with our Chinese colleagues. All the signs are that a pragmatic approach will be adopted.

Mr President, may I now turn to some other points raised by Honourable Members. The Administration fully accepts that much more should be done to meet the travel needs of the disabled. Much progress has been achieved in the past 2 years. For example, all new franchised buses are now equipped with special features to make them more accessible to the elderly and the infirm, taxis arc permitted to pick up and discharge disabled passengers in restricted zones, the MTRC and KCRC have installed lifts and other equipment to facilitate access. 1 am pleased to say the Governor will convene the third annual summit meeting on transport facilities for the disabled in early May to help identify new initiatives and to keep up the momentum.

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On concessionary fares for the elderly we shall continue to encourage public transport operators to improve on what is already in place, but it must be recognised that this is a voluntary scheme. If concessionary fares were to be made a mandatory requirement, then it would be difficult to resist the argument from operators that the costs to them should be recovered through the adjustment of fares for other passengers.

As regards improvements in ferry services as a means of addressing road congestion, this is also high on our agenda. The Hong Kong Ferry Co Ltd now deploys 3 high speed catamarans on the Tuen Mun to Central route, each with capacity of 400 people. More such vessels will be brought into service. We are now close to the completing negotiations with the company to allow property development above their new piers in Central District, which in turn will provide for a part of the profits from the developments to be channelled into a fund for ferry sendee improvements.

Mr President, transport affects everyone in the community. Different schemes impact on commuters in different ways. Whilst some benefit, others may be disadvantaged. Thus, some controversy is inevitable. The Tuen Mun bus-only lane experiment, now in hand, illustrates this very point. The Administration's fundamental approach has always been to adopt policies and pursue objectives that serve the widest public interest. This is precisely what we will continue to strive for. Thank you.

End/Wednesday. March 29, 1995

Speech by Secretary for Planning. Environment and Lands on budget debate *****

Following is the speech by the Secretary for Planning, Environment and Lands, Mr Tony Eason, on budget debate in the Legislative Council today (Wednesday):

Mr President.

Harbour Reclamations

Quite a lot has been said, both in this debate and elsewhere recently about harbour reclamations. 1 would like to briefly reiterate the Administration's position on the subject.

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The occurrence of several major public works projects, including extensive harbour reclamations, within such a short time span and in such a small area in and around Victoria Harbour, can cause both unsightlyness and inconvenience. But we should not allow these temporary problems to overshadow the long-term benefits to Hong Kong. When all the current and committed projects are completed, Hong Kong will be much better off in terms of land supply and infrastructure and the environment, including visual impact; and the benefits will accrue well into the next century.

In Hong Kong, reclamations have always been a major way of supplying much needed land for housing and infrastructure development both to improve the quality of life and to sustain economic growth. We approve reclamation projects only when we are fully satisfied with the results of very comprehensive studies to assess feasibility, and in particular the impact on the environment and marine traffic.

Those who suggest the harbour is shrinking may have forgotten that the harbour has already expanded westwards very considerably. Most of the traditional dockyards and godowns in Kowloon and on Hong Kong Island are gone. Beyond the container port at Kwai Chung we will be developing a new one on Northeast Lantau, initially for terminals 10 and 11, and providing new cargo-handling facilities at Tuen Mun for the fast-growing river trade.

The current reclamation programme is the product of a series of extensive studies which began in the early 1980's with the Study on Harbour Reclamations and Urban Growth and continued through the Territorial Development Strategy, the Port and Airport Development Strategy and Mctroplan. In moving our proposals forward, we have consulted widely to make sure that public views are taken into account each step of the way.

Some people seem to be under the impression that the bulk of the reclaimed land will be used for commercial or residential development. This is not true. Of the 1,100 hectares of reclamation under construction or planning, only 27% will be used for commercial or residential development. In the case of schemes currently being implemented, almost 40% of the new land on the West Kowloon Reclamation is set aside for the Airport Railway, the West Kowloon Expressway and other new roads connecting the Western Harbour Crossing. Commercial or residential development will only take up 26% of the land there. The same applies to the Central and Wanchai Reclamation. It will produce land for the HK Terminal of the Airport Railway, the extension of the Convention Centre and a major new road to relieve traffic congestion. Only 23% of the new land there will be used for commercial or residential purposes, including hotels which, as a few Members have said, will be needed in the next few years to serve the tourist industry.

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Some have said that reclamations in Victoria Harbour could have an adverse effect on its scenic value. I want to point out that the role of the harbour as a visual amenity, especially the central part, is being carefully respected. A basic principle of our planning is to "bring the harbour to the city and the city to the harbour" by means of 33 km of interconnected waterfront promenade and civic spaces. Of the 1,100 hectares of new land, 28% will be for open space or amenities.

Another 30%, about 330 hectares, will be used for major new roads. There is a call to put all major roads on the newly reclaimed land underground for better environmental protection and to allow more land for development. The ultimate design of transport links on reclamations is the outcome of a balanced view being taken on inter-related matters concerning design standards, environmental protection, limitations of space, land development economics, aesthetics, programming, etc. It is such considerations that have led to the proposed Central-Wanchai by-pass being designed as an underground highway project.

As regards harbour reclamations and land supply, I must say it is both misleading and simply unrealistic to suggest we will release the reclaimed land onto the market all at once. Our plans have a 10-15 year horizon. New land designated for residential or commercial purposes will be produced gradually over a period of years and form a "land bank" to ensure there is a steady and continuous supply to meet demand. There is therefore no question of flooding the market with land. But the production of land and the related infrastructure requires a long lead time and we need to keep the momentum going.

We are of course aware of concerns expressed in the community about the effect of our plans and programmes. This has led us to recognise the need to step up our efforts to make sure that the public is more fully briefed on what we are planning and doing. We believe that given more information, the community will understand and support the need for the new reclamations.

Similarly, we will continue to try to ensure that our Chinese colleagues are aware of the rationale for all our current and committed projects. We have also informed them that we would be happy to arrange a briefing for them.

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Land Supply

In drawing up our Land Disposal Programmes, we follow the basic aim to provide adequate land to meet the economic and social needs of Hong Kong, taking into consideration not only current market conditions but also forecast demand in the medium to long term. To this end, we conduct an annual assessment of land requirements and supply for the next 10 years. The assessment is contained in a report which is available to the public and to LegCo Members. The next Report will be completed in July this year. Our current system of assessing overall land supply requirements works well and we can see no reason to change it. However, post- 1997, the SARG will make its own decisions.

Statistics suggest that office rentals have softened since the last quarter of 1994. This is attributed to increased supply and a slight fall in demand. The Government will continue to monitor the market situation and aim to supply sufficient land to meet demand. On hotels, the Government fully appreciates the importance of the tourism industry. The recommendations of the consultants who have studied its needs are currently being considered and decisions will be made as soon as possible. We need to ensure the ftiture supply of hotel rooms is adequate while also ensuring that we do not introduce unnecessary rigidities in the land market.

Strategic Sewage Disposal Scheme (SSDS.)

Some Members expressed views on the cost effectiveness of and the speed with which we are developing and implementing our sewage strategy. May I take this opportunity to once again remind everyone that Strategic Sewage Disposal Scheme is the result of a 2-year intensive study, completed in 1989, in which over 1,000 possible disposal arrangements were considered. To enable early relief to our serious harbour pollution problems, the Government has embarked upon a High Priority Programme of sewage services, which comprises Stage I of the SSDS and several related district Sewage Master Plans (SMPs). Work started in April 1993 and, upon completion in 1997, the HPP will abate 70% of the pollution in the central harbour.

We are now reviewing options for Stage II of the SSDS, the original concept of which involved an oceanic outfall and the discharge of treated effluent to the south of Hong Kong. It is our intention that the public should be consulted on the outcome of the review before a final decision is made. Thereafter, a comprehensive EIA of the selected option will be conducted in line with the standard requirements. The SSDS will continue to be discussed in the JLG expert group and the associated technical group to ensure that it is fully understood by our Chinese colleagues and that the selected solution for Stage II is an acceptable one.

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Diesel Vehicles

A few Members expressed concern about the proposal to require light-duty vehicles to switch to unleaded petrol from diesel. Vehicle emissions, especially those from diesel vehicles, have been identified as one of the major sources of air pollution in the urban areas. The Administration is therefore examining how our reliance on light- duty diesel vehicles can be reduced in favour of the cleaner unleaded petrol alternatives which are readily available on the market. We are well aware of the potential impact of such a switch on the operating costs of the vehicles and on transport fares. We are therefore examining this and other related problems and we intend to consult the transport trade and the public on our proposals soon. We are also monitoring developments, both locally and overseas, in the field of electric vehicle technology.

Waste Reduction

We have heard some recycled comments on Hong Kong's recycling efforts. I wish to point out once again that our recycling record is a good one by international standards. In 1994, our recovery rate for waste paper was 56%, for non-ferrous metals 73% and for ferrous metals 80%. However, we accept that there is no room for complacency. Once our study on waste reduction has been completed, we intend to devise plans to reduce our reliance on valuable landfill disposal space. The public will be consulted on these plans later this year.

Environment and Conservation Fund

A Member expressed concern about the allocation criteria for the Environment and Conservation Fund. To assist potential applicants to formulate proposals which fall within the ambit of the Fund, we have issued guidelines and drawn applicants' attention to them in the application form. Very simply, the main allocation criterion is the extent to which a proposal can bring direct and practical benefit to the local environment. The application of this criterion involves a degree of subjective judgement and each application has to be considered on its merits. Nevertheless, we will seek to ensure that applicants will have a clear idea of how they should present their proposals and budget for expenditure items. Although the Fund is still in its early days, we have already approved grants amounting to over $8.2 million for 24 projects. Interest in the Fund remains keen.

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Infrastructure Co-ordinating Committee

In response to Members's comments on the work of the Infrastructure Coordinating Committee, I would like to remind them of the brisk progress the committee has made since its establishment last December. The ICC had its first plenary session in January, at which it decided to set up four panels to cover railways, roads and bridges, air traffic control, and marine channels. A full programme of visits to Zhuhai, Shenzhen and Hong Kong was arranged in early March and a seminar for members, experts and advisers was held in Hong Kong following the visits. During the four-day visits-seminar programme, we exchanged views and information on major proposals such as the Lingdingyang Bridge, which if built would link Zhuhai with Hong Kong, the Western Corridor (road and rail) Project between Shenzhen and Hong Kong, and the Western Corridor Railway in Hong Kong. We received briefings, paid site visits, exchanged copies of reports and studies and listened to presentations on each other's proposals and problems. In short, we all gained a better understanding of the issues to be resolved. A series of four panel meetings will be held in Beijing at the end of March and the beginning of April. The panels will report progress to the main committee at its second meeting to be held in April and the way forward is also likely to be discussed then.

The ICC has therefore made a very good start, both sides taking the opportunity to establish new contacts and good working relationships with each other. Open channels of communication and firm foundations for co-operation and co-ordination have been established. The work of the ICC has been characterized by goodwill and professionalism on both sides. On this basis, there is a reasonable expectation that good progress can be made. I am sure that the ICC will continue to be a successful feature of the close relationship between Hong Kong and China.

End/Wednesday, March 29, 1995

Speech by Secretary for Security on budget debate ♦ * * ♦ ♦

Following is the speech by the Secretary for Security, Mr Peter Lai, on budget debate in the Legislative Council today (Wednesday):

Mr President,

I should first like to deal with issues raised by Honourable Members on Law and Order.

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Law and Order

I fully appreciate Honourable Members' concern about the adequacy of police presence on our streets, but they should rest assured that we have sufficient police officers on patrol. Hong Kong is one of the safest cities in the world. By international standards, we are a well-policed community. Apart from the many uniformed police officers who patrol particular beats, there are a considerable number of officers who may be less visible, but are no less involved in "front-line" operational duties. These include officers in Emergency Units, in District Traffic Teams, in Police Tactical Units and various Crime Investigation Units. Altogether, some 79% of our police officers are directly engaged in 'front- line' duties.

In response to the community's concern about visible police presence, we propose to deploy 400 additional Police officers on the streets and 81 additional Police officers to strengthen the Police Tactical Unit in the coming year.

The Police will continue to deploy officers in an effective and flexible manner, assisted by advanced communication and computer support systems. We realise the importance of technology in modem policing. We, therefore, propose to spend some $40 million and $52 million respectively on enhancing Police communication and computer systems. With this enhanced support, our Police Force will be able to react to incidents more quickly and more effectively. This is one of the reasons why the more manpower intensive Neighbourhood Police Units can be replaced, with no reduction in effective policing.

I am aware of Honourable Members' interest over the progress and outcome of the Police Management Review. The objective of the review is to determine the appropriate level of manning for the Police Force to carry out its functions efficiently. It also critically examines whether certain tasks should continue to be performed by the Police; whether more modern technology can be used; and the maximum extent of civilianisation. This is the most comprehensive study of the Police establishment ever undertaken and obviously takes time to complete; we must get it right. Initial examination of the 42 reports has just recently been completed, and I am working at presenting the reports to the Security Panel of this Council for examination next month. I am sure that Honourable Members will find that many of the detailed points expressed in this debate will be addressed there.

34

Turning to specific law and order issues, the problem ol youth crime remains a matter of concern to the Government While the proportion of young offenders arrested dropped last year, the actual number of young offenders arrested has increased. We need to make more effort to encourage our young people to stay away from crime. To establish a strong, scientific basis for our future course of action, the Fight Crime Committee has commissioned a study into the social causes of juvenile crime. That study is now complete, and the Committee will examine its findings and recommendations next month. The study has proposed some new initiatives which can be taken to tackle the problem.

The Hon Selina Chow has suggested that greater use be made of the Junior Police Call. We agree. The Police are planning to give new momentum to the scheme, in order to foster a closer police-youth partnership in the fight against crime. Indeed expect that the number of Junior Police ( all member^ will increase this year

The Government is dedicated to the fight against triads and organised crime, and to protect witnesses who assist in bringing these criminals to justice. The Organised and Serious Crimes Ordinance, which was enacted in October last year, will be fully implemented shortly. We will allocate 45 additional police posts to enhance the surveillance and investigative capabilities of the Organised Crime and Triad Bureau. We will also provide 32 additional police posts to reinforce the Police Central Witness Protection Unit.

I share the Honourable James I o’s concern about the recent increase in drug abuse by young persons, but we are taking steps to tackle it The Draft Estimates, for example, provide for the creation of 38 additional Police posts to improve the enforcement work of the Narcotics Bureau. But. enforcement alone does not solve the drugs problem. Treatment and rehabilitation, as well as preventive education and publicity, are equally important I shall return to this subject later in my speech.

Immigration

I now turn to immigration issues. Honourable Members expressed concern about the problem of illegal workers. As we have emphasised on other occasions, the problem of illegal workers is one to which we give a high priority Last year, we established an Immigration Task Force to take action against immigration offenders, including illegal workers. The Draft Estimates this year provide for the strengthening of the Task Force by an additional of 46 posts, so that more vigorous and timely action can be taken against immigration offenders. Last year. 5.404 illegal workers were arrested; 2.906 of them were prosecuted. They were either fined, or given a prison sentence, and returned to their home country Employers of illegal immigrants are. of course, also subject to prosecution, fines and imprisonment We will keep under review the effectiveness of these measures as a deterrent, taking account also of the effect on our prison population.

35

Members raised the problem of foreign domestic helpers engaging in unauthorized work. This is one area where strengthening our Immigration Task Force can help us to make an impact. Last year, we investigated 345 cases, which led to the prosecution of 162 foreign domestic helpers and 38 employers. Convicted domestic helpers are usually fined; some are also sentenced to jail. In addition, they are returned to their home country. Employers convicted in these cases are also subject to the penalties of fine or imprisonment. I should emphasize that it is most important that members of the public help us bring these offenders to justice, by reporting cases or other relevant information.

Honourable Members also expressed concern about illegal immigrants and Two-way Permit visitors giving birth while in Hong Kong. The real solution, however, lies in prevention at source. We have raised this with the Chinese side, most recently at the Border Liaison Annual Review.

Vietnamese Migrants

I turn now to the problem of Vietnamese Migrants. The Government is mindful of the debt owed to the community by the UNHCR. Whenever the opportunity arises, we remind the Office of the United Nations High Commissioner for Refugees of the outstanding amount. The UNHCR, of course, relies on donations from the international community for its resources. At the Sixth meeting of the Steering Committee of the International Conference on Indochinese Refugees held in Geneva on 16 March, the UNHCR once again appealed to the international community for funds for its programmes under the Comprehensive Plan of Action (CPA). The statement adopted by the Conference made a specific reference to the amount owed to Hong Kong, and called upon donor countries to contribute to the Hong Kong programme.

Some Honourable Members also referred to the need to live up to the agreements reached at the Geneva Conference. Mr President, let me take this opportunity to recap briefly on the outcome of that conference.

At Geneva, the participating countries re-affirmed that all non-refugees must return to Vietnam, and that the process of returning them should be expedited. The end of 1995 was set as the target for closing all the camps but. recognizing that Hong Kong now holds about half of the Vietnamese migrant population in the region, it was also agreed that the target date for closing camps in Hong Kong should be shortly after the end of 1995. As part of this objective, the Vietnamese Government has also agreed to simplify the procedures for clearing the migrants for return.

36

The Vietnamese Government has agreed to take back 3,600 Vietnamese migrants per month; 1,800 via the reception centre in Hanoi; and the remaining 1,800 via Ho Chi Minh City. Since the reception centre in Hanoi is used solely by Hong Kong, this in effect means that the Vietnamese Government has agreed to receive 1,800 Vietnamese migrants per month from Hong Kong.

These are important steps forward in expediting the return of the Vietnamese migrants. The message promulgated by the international community at the Geneva Conference is clear:

* First: the status determination procedures have been completed. There will be no review of the outcome of the status determination process.

* Secondly: there is no prospect whatsoever of the Vietnamese migrants being resettled overseas from the camps. It is in their best interests to return to Vietnam voluntarily as soon as possible, in order to benefit from the re-integration programmes and the economic development taking place in Vietnam.

* Thirdly: if the migrants still refuse to return to Vietnam under the Voluntary Repatriation Programme, they will be returned under the Orderly Return Programme (ORP), which is the internationally recognized alternative to voluntary repatriation.

We welcome the decisions reached in the Geneva Conference, which sets the framework for a speedier resolution of the VM problem. The quicker we can effect their return to Vietnam, the quicker we can reduce the financial burden on Hong Kong. Nevertheless, this is only the beginning of a new chapter in the handling of the Vietnamese Migrants problem. There is still a lot of work to be done to translate what has been promised into reality. That will impose a particularly heavy burden on the UNHCR and all the departments involved in the Hong Kong Government, in particular the Correctional Services Department, which have risen to this challenge in difficult circumstances. We are determined to push ahead, building on the framework agreed recently in Geneva.

37

Drug Abuse

Lastly, I turn to the problem of drug abuse. I assure Honourable Members that we do recognise the seriousness of the problem. The Government is committed to tackling drug abuse, as exemplified by the package of measures set out in the Forward Action Plan, with a total cost of some $30 million, announced at the Governor’s Summit Meeting on Drugs earlier this month. We have also received many other valuable suggestions on how to halt the growing trend of drug abuse by young people. These include the idea of establishing an anti-drug abuse fund to support drug demand reduction work, which was also mentioned by the Hon Dr K C Lam. All of these ideas will be given serious consideration by the Action Committee Against Narcotics in the months ahead. We will also study the effectiveness of different treatment approaches, including those adopted by religious agencies, to help determine the future direction of the provision of treatment and rehabilitation services.

Honourable Members, let me stress once again: enforcement action alone does not solve the drugs problem. Treatment and rehabilitation, preventive education and publicity are equally important. Effort by the Government alone is not enough; we need the support, indeed active participation, by voluntary agencies, parents, teachers, social workers, indeed the community as a whole. We in the Government are determined to fight this evil; I urge the community to join us in our common aim to "beat drugs".

Thank you. Mr President.

End/Wednesday, March 29. 1995

Speech by Secretary for Housing on budget debate *****

Following is the speech by the Secretary for Housing. Mr Dominic S W Wong, at the budget debate in the Legislative Council today (Wednesday):

Mr President.

I am grateful to Honourable Members for their views on various housing matters.

38

I shall speak on the four dominant themes in this year's Budget debate: property prices, supply of land for housing development, supply of Hats and housing needs of specific groups.

Residential property market

On residential property prices, some Members have suggested that the Government should relax the anti-speculation measures introduced in June last year, while others have called for the imposition of more punitive measures. As the Financial Secretary said in his Budget Speech, the anti- speculation measures introduced last year are achieving the desired result. Speculative activities in the property market have subsided significantly. This is reflected in the drastic reduction of 85% in the number of short-term re-sales in February this year as compared with the peak in April last year. The latest information also shows that, compared with peak prices in April last year, prices of flats have fallen by an average of 19% in February this year, which is five more percentage points than in January. The need to step up controls has therefore not been indicated. We have no intention of introducing further intervention measures to influence the market. On the other hand, we will take positive measures to provide more land for housing and to increase the supply of flats, and let the property market adjust itself according to market economics. We will monitor developments closely, and will take note of views which Members of this Council, individuals and organisations wish to express on this subject.

An allegation was made, Mr President, in the Budget Debate regarding hoarding of new flats by private developers. We have no evidence of such activities. A vacancy rate of 4.7% of total private housing stock in 1994 is no cause for concern, and is indeed consistent with the average vacancy rate of around 4% in the past 15 years. I would point out also that hoarding would not be in the interest of developers, whose business it is to build and sell flats. Vacant fiats would attract payment of rates .and other finance charges, and developers' own liquidity would also be affected. For these reasons, on the other hand, developers have been urging the Government to relax the nine-month restriction on the pre-sale of uncompleted flats so that they can be sold early.

39

Land supply for housing development

I agree with Members that the most effective way of stabilising residential property prices in the long run is to increase the supply of land and accelerate housing production. Our declared aim has always been to make available sufficient land to meet the additional requirements arising from regular reviews of public and private housing demand. We have already announced the target of providing 504,000 new flats in the next six years. In order to establish how much land is required for the different categories of housing after that date and at what time the flats should come on stream, we have started a systematic and comprehensive assessment of (he scale .and composition of housing demand in both the public and private sectors. This assessment is expected to be completed in a few months’ time. The findings will provide the basis for a review of the Long Term Housing Strategy. The review will commence at the end of this year and will make recommendations on the Government's housing policy after the year 2001. Before proceeding with the review, I intend to solicit widely for views from Members of this Council, the Housing Authority, interested organisations, concern groups and the general public. Subject to the Government's final decision on the way ahead, we will then identify and allocate sites to the Housing Authority and the Housing Society to produce more public housing flats to meet confirmed demand. Similarly, sufficient sites will also be made available for private housing, subject to the agreement of the Sino-British Land Commission.

I would add that apart from new land, redevelopment is also a major source of flat supply in the private sector. We have just commissioned a study of the redevelopment potential of the entire territory for housing development, starting with the metropolitan area. This study is expected to be completed around March next year. In addition, five other studies will also be undertaken shortly to explore specifically the housing development potential of another 170 hectares of land in various parts of Hong Kong.

Housing production

Good planning is essential in housing production as it takes a relatively long lead time to produce flats to meet demand. In the next six years we have pledged to provide 310,000 new flats in the public sector and to enable the production of 195,000 flats in the private sector. This is equivalent to an average production of 84,000 flats a year. To achieve these targets, a high-powered I lousing Project Action Team, chaired by me personally, has been established to strengthen inter-departmental co-operation, and to monitor, facilitate and accelerate the process of housing development. At present, we are fast-tracking and monitoring 38 large housing projects, with a potential production of about 94.000 flats, to ensure that not only is the land available on time for development, but that the required infrastructure will be completed on schedule or even accelerated to match the population intake.

40

Waiting list for public rental housing

Some Members have expressed concern at the backlog of about 150,000 applications on the Housing Authority's general waiting list for public rental housing. In reality, not all these applications constitute a real demand because a significant proportion are either ineligible applicants or are sitting tenants wishing to change flats. Also, the majority of Temporary Housing Area residents and urban squatters who are on the general waiting list will be rehoused through the clearance allocation quota, rather than the general waiting list. The Housing Authority estimates that by 1997/98, about 70% of the backlog on the general waiting list as at August 1993 will be cleared. After that year, when most Temporary Housing Areas and all urban squatters on Government land have been cleared and given the increase in public housing production, we should be able to rehouse the remaining backlog in the following two years and to process new waiting list applicants much faster.

Occupants of rooftop structures, bedspace apartments and squatter areas

Two Members have expressed concern at the poor living conditions of rooftop structures, bedspace apartments and squatter areas. I appeal again to occupants of these structures to come forward to register with the I lousing Department and place, themselves on the general waiting list. This is the proper way to ensure that they will be considered for rehousing together with other eligible applicants on the general waiting list on a fair and equitable basis and then obtain public rental housing in due course. Indeed this will also give us a better idea of the demand. I wish to reiterate that the fundamental principle in our rehousing policy is that no one will be rendered homeless as a result of any Government enforcement action. Those in need can be rehoused in either public rental flats or Temporary Housing Areas, depending on their eligibility.

Home ownership

Mr President. I wish to thank Members for their support of our subsidised home ownership schemes because of their contribution to social stability and the fostering of a sense of belonging. We will continue to allocate more land for these schemes and to promote them in future among existing public rental housing tenants who can afford home purchase, and others eligible for them. This will also have the effect of releasing a substantial quantity of rental flats for further allocation to others in need, and thus reducing the waiting time for public rental housing applicants as well. Members will wish to know that the Housing Authority is now examining ways of encouraging those public rental housing tenants whose family income greatly exceeds the General Waiting list Income Limit or who own private property to move out of their flats, thus also freeing up existing rental stock for those in genuine need.

41

Housing for the elderly

Two Members have asked the Government to accord priority to the elderly’s housing need. I wish to point out that we have already introduced various preferential schemes to give elderly applicants priority allocation. For example, an elderly singleton on the Single Person Waiting.List can normally be rehoused within two years of registration if he or she is willing to accept hostel accommodation or flats in the extended urban areas or the New Territories. Elderly couples or singletons who apply in groups of two or three will also be allocated housing within two years. Eligible families with elderly members will be allocated housing three years earlier than normal. In addition to these arrangements, the Government has pledged to :

(a) rehouse, by 1997, the 4,000 elderly single people who were on the waiting list in 1993; and

(b) build, over the next four years, an additional 22,300 flats for the elderly on four new urban sites and in a number of existing public housing estates.

All these arrangements, which we are pursuing vigorously, will go a long way towards meeting the housing needs of the elderly.

Conclusion

In conclusion, Mr President, 1 would like to reassure this Council that the Government and the public housing agencies are fully committed to improving housing conditions in Hong Kong, and that we arc doing a great deal of positive and constructive work to meet the housing needs of the community.

Thank you.

End/Wcdnesday, March 29, 1995

42

Speech by Secretary for Trade and Industry on budget debate *****

Following is the speech by the acting Secretary7 for Trade and Industry, Mrs Regina Ip, on budget debate in the Legislative Council today (Wednesday):

Mr President,

I am grateful to a number of Members for drawing attention to the continued need to upgrade the technological infrastructure for our industries and to promote Hong Kong as a world-class service centre for the Asia Pacific Region.

We believe that manufacturing will continue to play a vital role in the economy in the foreseeable future. To reinforce the competitive strength of Hong Kong's manufacturers, we have been consistently targetting our support towards higher value-added activities. Many of these initiatives benefit small and medium-sized enterprises, which make up nearly 98% of companies in the manufacturing sector in Hong Kong. One example is the Technology Centre, which has reserved a large part of its new premises for small and medium-sized enterprises. Another is the Hong Kong Productivity Council, which is investing more in product development assistance to local companies, thanks to a substantial grant from the Industrial Support Fund. A third is the Applied R&D Fund, offering financial support to local companies.

These and similar initiatives have contributed to the successful transformation of Hong Kong's industries from labour-intensive operations making low value-added products to technology-intensive industries producing high value-added goods and services. Of course, much of the credit goes to Hong Kong entrepreneurs. But the Government has certainly played its part by providing the appropriate physical and technological infrastructure. As a result of sustained government investment in productivity improvement, and corresponding action by manufacturers, labour productivity tripled in the fen years from 1982 to 1992. As a result, Hong Kong's domestic exports are worth more in real terms today than they were in 1983, despite a halving of the industrial workforce. The value-added by each member of the industrial workforce has also more than doubled in real terms, from just over $40,000 in 1982 to well over $80,000 in 1992.

We plan to continue supporting the -evolution of the manufacturing sector towards higher value-added activities. In this budget, we are seeking Members' approval to increase the Industrial Support Fund by nearly 17%. Within the next few weeks, we shall be seeking Members' support for the establishment of the Applied Research Council. Later this year, we shall be considering the case for a fourth Industrial Estate and a Science Park.

43

Turning now to the services side of the economy, the same forces which have fostered the evolution of our manufacturing industries have contributed to the burgeoning of the service sector. The growing importance of the service sector to our economy, in terms of contribution to GDP and exports and the numbers employed is now well known. But the forces which have shaped this development are less well documented. We believe this development is attributable first and foremost to technology change, particularly the rapid development in telecommunications and information technology, which has made new ways of doing business and organising production possible. Technology advance has made cross-border production, whether of manufactured goods or service products, possible on an unprecedented scale. It has also increased significantly the opportunities for the sale of services across borders. Secondly, the continued strong economic growth of countries in the Asia Pacific region, together with the steady increase in intra-region trade and investment, have accentuated the need for a regional services centre of excellence such as Hong Kong, which is strategically located at the vortex of the dynamically growing Asia Pacific region, and which excels in the provision of a wide range of closely-related, specialised services in support of trade and investment expansion.

With these developments in mind, as the Financial Secretary has announced, we have commissioned a consultancy study into the extent to which Hong Kong’s services will benefit from additional Government promotion. This study is about how Hong Kong can position itself for the global economy of the 21st century: an economy which will become increasingly globalised in nature and where the distinction between a manufactured product and a service product will become increasingly blurred. It is also about how Hong Kong can sharpen its comparative advantage for the future. Not being a low-cost economy, we no longer have any cost advantage in the production of low-value added mass merchandise. We need to examine critically how we can build on our existing strengths as a services provider. As the Asia Pacific region continues to develop, we need to continue to play a vital role in servicing the production and distribution networks across the region which our entrepreneurs have built up, and in servicing other budding regional economies.

The report of the consultants is being finalised and we should soon be in a position to consult the service sectors, as well as other interested trade bodies, on the recommendations in the final report. We are grateful to Members for the interest in the study, and look forward to working with Members and the representatives of the service sector in implementing the recommendations.

Thank you, Mr President.

End/Wednesday. March 29. 1995

44

Speech by Secretary for Works on budget debate * * * * *

Following is the speech by the Secretary for Works, Mr James Blake, on budget debate in the Legislative Council today (Wednesday):

Mr President,

Although the record shows that we continue to close the gap between budgeted and actual expenditure on capital works, some Members have voiced their concern at delays in infrastructural developments, in particular those of a larger scale, such as the sewage strategy and major road projects. One or two Members have also mentioned the possibility of delays in important projects during the transitional period.

I speak today to reassure Members on these important issues. Our achievements in implementing large-scale capital projects according to programme are good, and are improving. The Capital Works Reserve Fund airport core programme is proceeding very much in line with a tight schedule and strict budget limits. My colleague has spoken on high priority stage of the Strategic Sewage Disposal Scheme which is under construction and running according to a timetable that will get significant improvements in the quality of harbour water from 1997. Major highways and other key infrastructure projects are currently firmly on track for implementation within set programme and budget targets, as members will know from sighting the quarterly Public Works Programme reports sent out by Works Branch.

Members are aware however that the next few years will see significant increases in our capacity to implement on capital works. Whilst we are currently managing to keep works expenditure in line with targets, we are also enhancing the Works group capacity to deliver according to schedule. In this connection, I shall shortly be asking the Finance Committee to approve the setting up of dedicated project management teams in the Works departments, to help ensure the continued effective management of an increasingly complex and extensive capital works programme. This is a further action arising from the major report on uplifting our performance in delivering the PWP, which was completed last year.

Members have also noted that delays in land acquisition can lead to underspending on public works projects. A co-ordinating committee chaired by the Works Branch has been established and is now working to match priorities with resources, as well as restructuring land acquisition procedures so as to improve the predictability of land availability for development. This is another proposal from the report on uplifting performance. I am confident therefore that the transition period will not signal a "tailing oft" in Hong Kong's drive to tailor its infrastructure to the social and economic needs of the next century. Our planned PWP for the next five years also underlines my confidence.

45

Once again this year, questions on the problem of flooding in the North-west New Territories have been raised. Within the PWP this year we have embarked upon over $3 billion worth of major drainage projects in the northern New Territories, including the huge Shenzhen river training project which we are carrying out jointly with our colleagues across the border. Obviously a programme of works such as this has taken a substantial period of time to design and prepare for implementation. We are now poised to see the implementation of the necessary work, and a rigorous programme has been adopted to ensure completion of these works on schedule. These large-scale drainage schemes will complement existing local level flood protection measures, and will help to reduce greatly the effects of heavy rainfall in the northern New Territories.

Finally, Mr President. I would like to acknowledge some Members’ concerns for the safety of the people at the "sharp end" of our capital works programme, namely construction workers. The Works Branch is introducing many new initiatives which enable Government as the Employer to ensure that safety practices on Government sites are rigorously applied. As the ACP is already showing, this level of active management by the Employer does produce good results, and downward trends in the accident statistics. Regulation and training are the ways to ensure compliance with and awareness of safety practices and techniques. But as Dr Samuel Wong Ping-wai has pointed out, as well as applying pressure, there is also scope for rewarding safe practice. It is therefore our intention this year to implement a scheme whereby we will give high-profile public recognition to contractors who have consistently enabled their staff to work in a secure and clean environment.

With these remarks, Mr President, I conclude my response to Members' comments on the Budget.

End/Wednesday, March 29, 1995

46

Criminal Procedure Ordinance * ♦ * ♦ +

Following is the speech by the Chief Secretary, the Hon Mrs Anson Chan, in moving the resolution regarding legal aid in Criminal Cases (Amendment) Rules 1995 in the Legislative Council today (Wednesday):

Mr President,

I move the resolution standing in my name on the Order Paper.

A scale of maximum fees payable to lawyers in private practice who are engaged by the Director of Legal Aid in criminal cases is set out in Rule 21(1) of the Legal Aid in Criminal Cases Rules under the Criminal Procedure Ordinance. Under section 9A of that Ordinance, these Rules are made by the Chief Justice and approved by this Council.

At the Finance Committee meeting on 16 October 1992, Members approved a two-phase increase, to take place on 1 November 1992 and 1 April 1994, in the fees prescribed in Rule 21(1) of the Legal Aid in Criminal Cases Rules. Members also agreed that the fees prescribed in the Rule 21(1) should be reviewed biennially in future and that the Secretary for the Treasury should be delegated the authority to approve future revisions of the fees provided that the increases were no greater than inflation as measured by Hang Seng Consumer Price Index.

Accordingly, the Administration conducted a review of the fees in 1994. We concluded that the fees should be increased by 20.34% to reflect the level of inflation since the present fees were last reviewed in April 1992. The increased fees were approved by the Secretary for the Treasury under the authority delegated to him by the Finance Committee, for implementation on 1 April this year.

The Chief Justice has made the Legal Aid in Criminal Cases (Amendment) Rules 1995, in order to bring the increased fees into operation on 1 April. In accordance with section 9A of the Criminal Procedure Ordinance, the Rules now require the approval of this Council by Resolution.

Mr President. I beg to move.

End/Wednesday, March 29, 1995

47

Copyright (Amendment) Bill 1995

*****

Following is the speech by the Acting Secretary for Trade and Industry, Mrs Regina Ip. in moving the second reading of the Copyright (Amendment) Bill 1995 in the Legislative Council today (Wednesday): ,

Mr President.

1 move that the Copyright (Amendment) Bill 1995 be read a second time.

The purpose of this Bill is to increase the existing statutory maximum penalties against copyright infringement so as to increase the deterrent effect on piracy activities. The Bill also seeks to introduce a second tier of higher penalties for repeated offenders.

Copyright protection has recently become the focus of much public attention, both locally and internationally. Although we continue to pull out all the stops in fighting copyright piracy, undeniably the piracy situation in Hong Kong has deteriorated, particularly in regard to the piracy of compact discs, computer software and video games. Our enforcement efforts need to be matched by tougher statutory penalties to produce the maximum deterrent effect.

The Copyright Ordinance provides for two copyright piracy offences, namely the possession of infringing copies of copyrighted works for trade and business purposes and the possession of a plate for making infringing copies of copyrighted works.

Currently the offence of possessing infringing copies attracts a maximum penalty of a fine of only $1,000 per infringing copy and imprisonment of 12 months. To increase the deterrent effect on those involved in the sale of pirated compact discs, computer software and video games, we propose to raise the penalties to a fine of $25,000 per infringing copy and imprisonment for 2 years. Repeated offenders will be liable to a fine of $50,000 per copy and imprisonment for 4 years.

The other offence of possessing a plate for making infringing copies currently attracts a maximum penalty of a fine of $50,000 and imprisonment for 2 years. This sanction is .targeted at the manufacture of pirated copies of copyrighted works. We propose to raise the fine to $250,000 and imprisonment to 4 years on first conviction. Repeated offenders will be liable to a fine of $500,000 and imprisonment for 8 years.

48

Apart from increasing the maximum statutory penalties, the Bill also seeks to plug an existing loophole in the Ordinance. Clause 4 seeks to ensure that persons managing a body corporate or a partnership found engaged in copyright infringement activities are liable to the same penalties.

Mr President, owing to its more intangible nature, the importance of protecting intellectual property rights is not as readily appreciated as, for example, the importance of protecting real property rights. Nevertheless, protection of intellectual property rights is crucial to the continuous development of our society in that without such protection, scientific invention and artistic creation will be stifled. Trade, investment and technology exchange will be diverted from Hong Kong and Hong Kong's international reputation will suffer. It is therefore vitally important that we make every effort to ensure that we have the necessary legislative tools to fight copyright piracy. The proposed amendments to increase the statutory maximum penalties for possessing or producing infringing copies of copyrighted works are moves in this direction. Mr President. 1 recommend this Bill to this Council.

End/Wednesday. March 29. 1995

Inland Revenue (Amendment) Bill 1995 *****

Following is the speech by the Acting Secretary for the Treasury, Mr Mike Rowse. in moving the second reading of the Inland Revenue (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the Inland Revenue (Amendment) Bill 1995 be read a second time.

It is a principle of our taxation system that individuals have the right to order their affairs so as to pay the least tax consistent with their legal obligations. At the same time, however, we must act to close tax loopholes as they emerge, because the net result of tax avoidance is to shill the burden of financing public services unfairly on to the rest of the community.

In the 1994 Budget Speech, the Financial Secretary highlighted the widespread use of service companies to avoid or significantly reduce tax liability, and announced our intention to remedy the situation by legislation.

49

The Bill now before Members seeks to tackle one of the main areas of concern, namely the use of a service company to disguise what is, in substance, an employeremployee relationship. Under this type of arrangement, an individual engaged under employment-like conditions has the remuneration for his services paid, not as a salary to himself, but as a consultancy fee to an interposed company he controls. The fee is then chargeable to profits tax in the hands of the service company which is entitled to a wider range of deductions than would otherwise be available to the individual under salaries tax. In addition, remuneration is provided to the individual by the service company in a tax-efficient manner so as to result in little or no liability to salaries tax.

To counter this type of arrangement, we propose that remuneration paid to a company for services rendered by an individual who controls that company, directly or indirectly, will in future be treated as being income derived by that individual from employment and thus chargeable to salaries tax. However, to ensure that genuine contracts for services are not caught, we propose to exclude arrangements which do not bear common characteristics of contracts of employment or which, in the judgement of the Commissioner of Inland Revenue, are not, in substance, contracts of employment.

Mr President, I move that the debate be now adjourned.

End/Wednesday. March 29, 1995

Dumping at Sea Bill passed *****

A Bill which sought to localise the provisions of the Dumping at Sea Act 1974 (Overseas Territories) Order 1975 so that existing control on marine dumping activities could continue after .lune 30. 1997 was passed by the l egislative Council today (Wednesday).

The Dumping at Sea Bill also seeks to address deficiencies in the operation of the existing control scheme and the need to increase penalties.

The Bill specifies that a waste producer should apply for a permit from the authority before commissioning a dumping or incineration act at sea.

An operator engaged by the waste producer to carry out dumping should not take on board waste for dumping unless he is satisfied that the waste producer has a permit as required.

50

Speaking at the resumed debate on the Bill, the Secretary for Planning, Environment and Lands, Mr Tony Eason, said if toxicity tests were carried out for the issue of a dumping permit, the results would be made available to the public on request.

He said the Government aimed to introduce the Environmental Impact Assessment Bill, which would cover the environmental impact assessment of potential marine dumping areas, into the Legislative Council before the end of 1995.

In the meantime, he said the Government would continue the current practice of designating a new dumping ground only after an environmental impact assessment study has confirmed the suitability of the site concerned.

End/Wednesday, March 29. 1995

Prisoners' Education Trust Fund Bill

*****

Following is the speech by the Secretary for Security. Mr Peter Lai, on the LegCo committee stage amendment to the Prisoners’ Education Trust Fund Bill today (Wednesday):

Mr Chairman.

I move that the Clause (7) be amended as set out in the paper circulated to Members.

Fhe amendment put forward is technical in nature. As advised by the Director of Audit, it is the Director of Accounting Services who is responsible for giving advice on account-keeping. Therefore, it is appropriate to replace the "Director of Audit" with the "Director of Accounting Services" in Clause 7(1) of the Bill. This does not affect the provision that the accounts of the I und will be audited by the Director of Audit before it is tabled in the Legislative Council each year.

Mr Chairman. I beg to move.

End/Wednesday. March 29, 1995

51

Prisoners' Education Trust Fund passes its 3rd reading *****

More financial resources would be available to prisoners who wished to further pursue their academic studies in prisons following the passage of Prisoners' Education Trust Fund Bill at the Legislative Council today (Wednesday).

A government spokesman said today that the Fund was part of a scheme to encourage prisoners to obtain better educational qualifications while in prison.

The aim was to help them better prepare for reintegration into the community upon their release from prison, he said.

"At present, young offenders aged between 14 and 21 are provided with general and vocational courses in penal institutions on a compulsory basis.

"However, some prisoners, in particular adult prisoners, were unable to pursue academic studies through the lack of money," he pointed out.

"Opportunities for academic pursuits are offered to adult offenders on a voluntary basis. These are provided in the form of remedial classes, correspondence courses and self-study courses.

"Although every assistance is provided to prisoners in their academic studies, it is not possible for the Correctional Services Department (CSD) to cater for the individual needs of every prisoners, such as conducting courses at an appropriate level or purchasing books and similar materials for a particular prisoner." he said.

"With the establishment of the Prisoners' Education Trust Fund, financial assistance would be provided to prisoners for academic pursuits and will be used to set up appropriate educational facilities, such as computer room and language laboratory, for use by prisoners," the spokesman said.

"The Fund will be available for all prisoners although it is intended primarily to assist those adult offenders with no alternative educational opportunities available," he added.

Donations amounting to $1.31 millions have been offered by the Royal Hong Kong Jockey Club ($1.01 million), the Hongkong Bank (0.25 million) and Duty Free Shoppers Limited (0.05 million) to set up the Fund.

52

The Commissioner of Correctional Services will be the trustee and a Trust Fund Committee will be set up to manage the Fund.

In order to facilitate the investment of the Fund, the Secretary for Security will soon appoint an Investment Advisory Committee on the best investment strategy.

The accounts of the Funds will be tabled each year at the Legislative Council.

End/Wednesday. March 29, 1995

Internationally Protected Persons and faking of Hostages Bill *****

Following is the speech by the Secretary for Security. Mr Peter Lai. on the LegCo committee stage amendments on Internationally Protected Persons and Taking of Hostages Bill today (Wednesday):

Mr Chairman.

I move that clauses 5 and 6 be amended as set out in the paper circulated to Members.

Three technical amendments are proposed. The first amendment clarifies the precise meaning of Clause 5. The second amendment is to correct a typographical error. The third amendment removes the unnecessary distinction between Commonwealth countries and foreign states in C lause 6(2).

Mr Chairman. 1 beg to move.

End/Wednesday, March 29. 1995

53

Bus commuting times *****

Following is a question by the I Ion Christine Loh Kung-wai and a written reply by the Secretary for Transport. Mr Haider Barma. in the Legislative Council today (Wednesday):

Question:

The recent Report of the Working Party on Measures to Reduce Traffic Congestion stated that the Government's transport policy "is founded on improving transport infrastructure, expanding the provision and improving the quality of public transport and managing road use." To this end. will the Administration inform this Council:

(a) of the respective commuting times by public transport from 17 major population centres throughout the territory (namely Chai Wan. North Point, Causeway Bay. Wan Chai. Kennedy Town. Aberdeen. Kwun Tong. Sha Tin. Tai Po. Sham Shui Po, Kowloon City. Wong lai Sin, Kwai Tsing. Tsucn Wan. Tuen Mun. Yuen Long and Mui Wo) to the main business districts of Tsim Sha Tsui and Central:

(b) of the respective increase/decrease in these commuting times in the last two years: and

(c) whether the Transport Branch will set performance targets to lower these commuting times?

Reply :

Mr President.

Bus commuting times from major population centres to Tsim Sha Tsui and Central are provided in the Annex. these figures arc based on data provided by the franchised bus operators and statistics from surveys conducted by Transport Department.

54

Although each bus route has a specified frequency, no comprehensive or systematic records have been kept of the actual journey times. Regrettably, therefore, no useful comparative figures can be provided for the last two years. This will be rectified and Transport Department will henceforth collate the necessary data.

In principle, I support the Honourable Christine Loh's suggestion to set performance targets. Such targets must be realistic if they are to have any meaning. It is difficult to do so against a background of deteriorating traffic conditions but I shall consider how this can best be achieved in the coming months.

55

Annex

From To Route Number Average Journey Times in minutes (in 1994)

Chai Wan Central CMB Route 80 (via King’s Road) 81

CMB Route 781 (via Island Eastern Corridor) 41

North Point Central CMB Route 10A 31

Causeway Bay Central CMB Route 11 48

Wan Chai Central Several bus routes 22

Kennedy Town Central Citybus Route 5M 30

Aberdeen Central Citybus Route 70 (via Aberdeen Tunnel) 39

56

CMB Route 7 (via Pok Fu Lam Road) 38

Sham Shui Po Central KMB Route 105 40

Sham Shui Po Tsim Sha Tsui KMB Route 6 36

Kowloon City Central KMB Route 101 47

Kowloon City Tsim Sha Tsui KMB Route 5A 25

Wong Tai Sin Central KMB Route 103 57

Wong Tai Sin Tsim Sha Tsui KMB Route 7 43

Kwun Tong Central KMB Route 101 57

Kwun Tong Tsim Sha Tsui KMB Route 1A 57

Yuen Long Central KMB Route 368 129

Yuen Long Tsim Sha Tsui KMB Route 69X 112

Tuen Mun Tsim Sha Tsui KMB Route 259B 79

Tsuen Wan Central KMB Route 334 64

Tsuen Wan Tsim Sha Tsui KMB Route 238X 47

57

Kwai Tsi ng Central KMB Route 337 72

Kwai Tsing Tsim Sha Tsui KMB Route 244X 57

Sai Kung Central KMB Route 690 65

Sai Kung Tsim Sha Tsui KMB Route 98D 51

Sha Tin Central KMB Route 182 67

Sha Tin Tsim Sha Tsui KMB Route 81C 73

North Central KMB Route 373 115

Tai Po Central KMB Route 307 84

Tai Po Tsim Sha Tsui KMB Route 271 77

Note:

Information on bus journey times is based on average figures obtained from records of franchised bus companies and sun/eys conducted by Transport Department. The figures are for reference only.

End/Wednesday, March 29, 1995

58

Shutting down of six Internet access providers

*****

Following is a question by the Hon Simon Ip Sik-on and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council of the reasons for the recent raiding and shutting down of six Internet access providers in the territory and why it was considered that those reasons were significant enough to justify such a potentially costly disruption of the exchange of academic and commercial information through on-line services?

Reply:

During the past few months the Royal Hong Kong Police Force’s Commercial Crime Bureau (CCB) has been investigating a number of cases involving computer hacking (unauthorised access to a computer system via a telecommunication device). In co-operation with overseas law enforcers the CCB established that the hacker or hackers have been entering the Internet system via service providers in Hong Kong and from there to overseas computer systems.

Through contact with the Office of the Telecommunication Authority (OFTA) the CCB established that of the nine Internet service providers in Hong Kong seven were operating without the required licence, in contravention of section 8 of the Telecommunication Ordinance. While OFTA was aware of this situation and was in discussion with the service providers to regularise it. the view of the CCB, supported by legal advice, was that they were duty bound to take action. The reasons were to stop the continuing offences of operating without a licence and to prevent the unlicensed service providers from providing a platform for the computer hackers to commit further offences. If the service providers had been licensed the CCB would have approached them for co-operation in investigating the computer hacking offences. However, as the service providers were unlicensed and thus of unknown probity the CCB considered it entirely inappropriate to seek such co-operation and there was no alternative but to close the operations, in order to prevent further offences from taking place.

End/Wednesday. March 29, 1995

59

Autotoll lanes

* ♦ ♦ ♦ ♦

Following is a question by Dr the Hon Conrad Lam Kui-shing and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

Regarding the provision of a toll lane for the exclusive use of motorists using the automatic toll collection system in the Cross Harbour Tunnel at Hung Hom, will the Government inform this Council:

(a) whether the operation of such a system has helped to relieve traffic congestion in the Tunnel; if so, what the effects are; if not. why this system is still being used; and

(b) whether it is aware that the reduction in toll lanes as a result of the introduction of this system has led to congestion in the normal toll lanes, thus causing inconvenience to motorists not using the automatic toll collection system; if so, whether it will request the tunnel company concerned to take remedial measures?

Reply:

Mr President,

(a) The automatic toll collection system installed at the Cross Harbour Tunnel was never intended to relieve traffic congestion. The congestion problem in this location is primarily due to the fact that the tunnel itself is operating far beyond its design capacity. The tunnel company introduced autotoll so as to enhance the efficiency and cost-effectiveness of toll collection, and to provide greater convenience for users of the facility.

(b) • Transport Department has received no complaints from the public in recent months about the autotoll system. The department monitors the operation of the tunnel and has advised that the introduction of autotoll has not led to increased congestion in the normal toll lanes. Before the company is allowed to open any additional autotoll lanes in response to increasing demand, a careful assessment is made to ensure that there will be no adverse effect on the overall traffic flow and in particular on those who continue to use the normal toil lanes.

End/Wednesday. March 29, 1995

60

Medical services for Peng Chau residents

*****

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 :

Will the Administration inform this Council what types of medical services are provided in Peng Chau and whether consideration has been given to expanding such services to meet the increase in the island's population as a result of the completion this year of the new Peng Lai Court which will accommodate 7,000 residents?

Reply •

The Department of Health operates a clinic in Peng Chau providing general out-patient consultations, maternal and child health services as well as a maternity home. Outside normal working hours, first-aid services are provided at the clinic by two nurses. For patients requiring accident and emergency treatment, transport by helicopter or police launch will be arranged. In addition, there are two general clinics operated by private medical practitioners in Peng Chau.

The medical services currently available in Peng Chau will be able to meet the increase in demand arising from completion of the Peng Lai Court and Kam Peng Estate since a large proportion of the 1,300 people to be accommodated in these two developments are existing residents of the island. Nevertheless, we will closely monitor attendance at the Peng Chau clinic to review the situation.

End/Wednesday. March 29. 1995

61

Banking supervision * * * * *

Following is a question by the Hon Allen Lee Peng-fei and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

The incident concerning the British Barings Banking Group has caused global repercussions, indicating that the mere monitoring of the local business activities of banks is not an effective guarantee of the sound financial state of such institutions. In this connection, will the Government inform this Council:

(a) what Government policies are currently in place to ensure that both the local and overseas business activities of the banks in the territory are in a sound financial state, and whether the Hong Kong Monetary Authority will step up efforts to monitor such business activities in the light of the Barings incident; and

(b) whether, in regard to banking groups setting up subsidiary companies to engage in various kinds of investment activities, there are close links between the Securities and Futures Commission and the Hong Kong Monetary Authority to monitor the investment activities of such subsidiary companies, so as to prevent the collapse of banks as a result of losses incurred in such investment activities?

Reply:

(a) The Hong Kong Monetary Authority (HKMA) adopts a ’’continuous supervision” approach in respect of banking supervision. This involves the on-going monitoring of institutions through a variety of techniques, aimed at detecting problems at an early stage. Such techniques include on-site examination, off-site reviews, reports by external auditors and other major powers under the Banking Ordinance.

In respect of supervision of banks with international operations, the HKMA follows international practice as embodied in the principles of the revised Concordat and the 1992 Minimum Standards issued by the Basle Committee on Banking Supervision.

62

In the case of banks incorporated in Hong Kong and for which the HKMA is the lead regulator, this involves the exercise by the HKMA of consolidated supervision of such banks, including their operations outside Hong Kong. In this connection, Hong Kong is one of 12 jurisdictions which have so far met the US Federal Reserve Bank's requirement that home supervisors should conduct "comprehensive and consolidated supervision".

The HKMA is engaged in a continuous process of enhancing the banking supervisory framework in Hong Kong. The Barings collapse has given added impetus to this, particularly in relation to the supervision of banks' derivative activities. Specifically, as an immediate step, the HKMA has written to all authorised institutions to require them to conduct an urgent review of the controls over trading in derivatives and to report on the results of this to the HKMA by 3 April 1995. Institutions which do not currently trade in derivatives are required to consult with HKMA before beginning such activities.

The HKMA has issued a guideline on the risk management of derivative activities back in December 1994. It intends to issue a further detailed guideline later this year. To facilitate preparation of this guideline, the HKMA is currently conducting a series of visits to the treasury operations of major participants in derivative activities in Hong Kong.

As an international financial centre, Hong Kong benefits enormously from the presence of a wide range of foreign banks in the territory. Occasionally, problems may arise in such banks which affect their operations in Hong Kong. In such cases the HKMA tries to reduce any adverse impact on depositors through its direct supervision of the operations in Hong Kong and through the use of its powers under the Banking Ordinance, e.g. to assume control of an institution in trouble.

A key factor in the success of such measures is the ability to obtain timely warnings and assistance from the home supervisor of the foreign bank in question. In the case of Barings, for example, the Bank of England kept closely in touch with the HKMA and sent one of its representatives to Hong Kong. Such co- operation is consistent with the improved arrangements for the supervision of international banks introduced in recent years. It is the intention of the HKMA to develop such co-operative links with other supervisors, both through bilateral discussion and through international organisations such as the Bank for International Settlements.

63

(b) We agree that the involvement of banking groups in a variety of banking and investment activities requires close liaison between banking supervisors and securities regulators. For this reason, there are established links between the HKMA and the Securities and Futures Commission (SFC). Apart from routine exchange of information, the HKMA and SFC consult each other closely on issues of common interest; monthly meetings are held to discuss operational issues regarding the activities of institutions subject to contemporaneous regulation by both regulators. In addition, a Working Party on Supervisory Co-operation has been established recently to consider, among other things, how liaison might be further strengthened. The Working Party has recently completed its report. It is intended that this should be used to develop a Memorandum of Understanding between the HKMA and SFC to cover the broad framework of co-ordinated supervision of banking groups.

End/Wednesday, March 29, 1995

Intellectual property rights in schools ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Timothy Ha Wing-ho and a reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

Teaching and learning activities at schools often involve the use of teaching and learning materials that have intellectual property rights implications, such as photocopies of books and publications, cassette and video tapes, music scores and scripts, and computer software etc. In view of the concern expressed by the international community and various sectors of the local community over the issue of intellectual property rights, will the Government inform this Council whether :

(a) any survey has been conducted in the last three years on the use of teaching and learning materials involving intellectual property rights in schools; if so, what the findings of the survey are; if not, why not;

64

(b) there is any plan to seek full or partial exemption for schools from the provisions of the laws on intellectual property rights, modelling on the United Kingdom’s 1988 Copyright, Designs and Patents Act;

(c) consideration has been given to obtaining permits for schools collectively to enable them to use teaching and learning materials involving intellectual property rights; if so, what the details are; if not, why not;

(d) additional funding will be provided to enable schools to have sufficient teaching and learning materials to use on the one hand and comply with the intellectual property right laws on the other; if so, what the details are; if not, why not; and

(e) guidelines have been provided to schools on the issue of intellectual property rights; if so, what the contents are; if not, why not?

Reply:

Mr President,

(a) No survey has been conducted on the use of teaching and learning materials involving intellectual property rights in schools. Nevertheless, we have issued a circular to draw the attention of schools and teachers to the need to observe the relevant legislation relating to copyright, see part (e) below.

(b) The Secretary for Trade and Industry is preparing a comprehensive Copyright Bill for introduction to the Legislative Council as soon as possible. This bill will include certain provisions similar to those in the 1988 United Kingdom Copyright, Designs and Patents Act, which would permit the use of certain copyright materials under certain conditions for certain educational purposes without infringing their copyright.

(c) At present, there is no single organisation in Hong Kong which administers collectively the intellectual property rights of all teaching and learning materials. It is therefore not feasible for the Education Department to obtain permits for schools collectively because of the wide spectrum of such materials in use in our schools.

65

(d) Funds are provided for schools in the public sector to meet expenses for teaching and learning materials including copyright. We shall keep such funding under constant review.

(e) The Education Department issued a circular on copyright on 17 January 1990 to all schools to draw the attention of school heads and teachers to the main requirements of the law relating to copyright.

End/Wednesday, March 29, 1995

Container Terminal 9 project

*****

Following is a question by the Hon Steven Poon Kwok-lim and a written reply by the Secretary for Economic Services, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

In his 1995-96 Budget, the Financial Secretary stated that the Government's original plan was to entrust the construction of the duplicate Tsing Yi south bridge to the consortium chosen to develop Container Terminal 9 but that the Government has recently decided to make preparations for the bridge to be built separately. In this connection, will the Government inform this Council whether :

(a) the Government's decision is an indication that the Government has decided to shelve the Container Terminal 9 project;

(b) its decision to make preparations for the bridge to be built separately will affect the agreement previously reached with the Consortium concerned; if so, whether the agreement will in consequence be invalidated; if not, whether die Government's present decision requires the consent of the consortium;

(c) it is necessary for the Government to inform the Chinese side of its decision, bearing in mind that it has discussed the development rights of Container Terminal 9 with the Chinese side; if so, when the Chinese side will be informed; and

66

(d) the opportunity will be taken to re-tender the Container Terminal 9 project in view of the exclusion of the duplicate Tsing Yi South Bridge from the scope of the project?

Answer:

Mr President,

My replies to the question are, seriatim:

(a) the Administration has absolutely no intention of shelving Container Terminal No. 9;

(b) the Administration had originally intended to entrust the construction of the duplicate South Tsing Yi Bridge to the CT9 developers to ensure its timely completion. Given the delay to the CT9 development, and having regard to the urgent need to alleviate traffic congestion and to cater for expected growth in traffic in Tsing Yi, the Administration considers it desirable to proceed with the bridge as a separate public works project. The entrustment arrangement does not directly relate to the land grant. The principal conditions of the draft land grant remain unchanged. The consortium is aware of the Administration's decision;

(c) the Chinese side has been informed of our intention to proceed with the bridge as a public works project;

(d) The exclusion of the bridge from the scope of the project makes no difference to our proposals for the development of CT9, which envisage a private treaty grant.

End/Wednesday, March 29, 1995

- 67. -

Importation of architects ♦ * * * ♦

Following is a question by the Hon Edward Ho Sing-tin and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

With regard to applications for the importation of Chinese architects following the introduction of the scheme for importing 1000 graduate professionals and managers from China, will the Government inform this Council of:

(a) the number of companies which have made such applications and the total number of architects they have applied for, as well as the number of companies which have been successful in their applications together with the total number of architects approved;

(b) the number of companies which have successfully applied for more than one architect, together with the respective number of architects approved for each company;

(c) the number of companies whose applications have been rejected and the reasons thereof; and *

(d) the criteria used in approving applications for the importation of architects from China?

Reply :

Mr President,

(a) We have received a total of 49 applications for the importation of architects from 35 companies under the Pilot Scheme for entry of PRC professionals. A total of 11 companies have been successful in all the four ballot exercises, each with one successful application. So far, 7 applications for the post of architect have been approved and 2 applications have been withdrawn.

68

(b) No company has been successful in their application for more than one architect post.

(c) None of the successful applications for the importation of architects in the first three ballot exercises have been rejected during the subsequent vetting stage. The detailed vetting of the 2 successful applications in the fourth ballot exercise held on 23.3.95 have not yet started. The results are therefore not available.

(d) There are no separate criteria for the assessment of applications for importation of architects from China under the Pilot Scheme. All applications for quota under the Pilot Scheme for entry of PRC professionals are processed in accordance with the following criteria :

(i) The entrant must be a graduate from one of the 36 key institutions in the PRC.

(ii) The employer submitting applications must be from any companies in Hong Kong other than PRC state enterprises.

(iii) The entrant possesses a special skill, knowledge or experience of value to, but not readily available in Hong Kong.

(iv) The qualifications and experience of the entrant are compatible with the post applied for; and

(v) The entrant must satisfy normal immigration requirements.

End/Wednesday, March 29, 1995

69

Bus services for Tai Po and North District

♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Tik Chi-yuen and a written reply by the Secretary for Transport, Mr Haider Barma, in the Legislative Council today (Wednesday):

Question:

In view of the continuing population growth in the New Territories North and Tai Po districts which has led to an increasing demand for external transport services, will the Government inform this Council whether there are plans to expand the number of external bus routes serving these two districts?

Reply :

Mr President,

At present, there are 31 Kowloon Motor Bus (KMB) routes serving the North District and Tai Po. 20 of these routes operate within the New Territories whilst 11 routes provide services to Hong Kong Island and urban Kowloon. In total 160 buses are deployed on the 11 external routes. In addition, nine residential coach services also run to the urban areas. Overall the bus services now provided can cope with

I». : r« •• existing passenger demand.

There are plans to increase the frequency and carrying capacity of public bus services over the next two years to cope with the anticipated growth in demand. KMB's route development programme envisages that 18 new buses will be added and higher capacity buses will also be deployed to serve the two districts. The Transport Department will monitor the situation closely.

End/Wednesday, March 29, 1995

IQ

Provident fund schemes of three universities

*****

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question :

Under the Occupational Retirement Schemes Ordinance, all retirement schemes are required to be registered with the Government by October this year; and for schemes existing prior to the commencement of the Ordinance, they must become solvent by October 1998. It is learnt that the provident fund schemes of the University of Hong Kong, the Chinese University of Hong Kong and the Hong Kong Polytechnic University are all in a deficit situation. In this connection, will the Government inform this Council whether:

(a) it will maintain its policy of not using the taxpayers’ money to make up for the deficits of these provident fund scheme;

(b) it is aware of how the authorities of the universities concerned will resolve such a serious problem; and

(c) it will consider exempting the provident fund schemes of the various universities from the Occupational Retirement Schemes Ordinance as suggested by some lecturers?

Reply :

Mr President,

(a) The Administration will not alter its existing policy of limiting its contribution to the superannuation schemes of the tertiary institutions to 15% of the average staff salaries assumed for the purposes of assessment of recurrent grants. The management and operation of the superannuation schemes, including the responsibility for monitoring and ensuring their financial viability, rest with the institutions concerned.

-•71 -

(b) The Administration is aware that the three institutions concerned, viz. the University of Hong Kong (HKU), the Chinese University of Hong Kong (CUHK) and the Hong Kong Polytechnic University (PolyU) are actively pursuing measures to improve the long term financial position of their superannuation schemes and to ensure that the schemes comply with the requirements for registration under the Occupational Retirement Scheme Ordinance (ORSO). Having completed its staff consultation, the CUHK has given approval to amend the Regulations of its existing scheme to ensure its solvency and will also introduce a new scheme to which members may opt by which benefits will vary according to the investment return of the pension fund. The HKU is considering amending its existing scheme to a ’’variable defined benefits” scheme which would provide for negative adjustments when times are unfavourable. Lastly, the PolyU is considering modifying the ’’defined benefits” nature of its scheme into "variable benefits” to make the scheme registrable under ORSO. The Administration understands that the institutions concerned are already consulting their staff regarding these measures.

(c) There is no statutory power under the ORSO by which to exempt the superannuation schemes of the tertiary institutions. An exemption would require legislative amendment. However, the ORSO does not require a specified level of contributions to or benefits from occupational retirement schemes. This is a matter for the scheme operators to decide. What ORSO requires is that every scheme be 100 percent solvent, that is, contributions must be sufficient to finance benefits in the long term. To achieve this level of solvency, operators may either reduce benefits or increase contributions. The operators of the schemes in question have not yet sought to register them under the ORSO. Nor have they presented the Registrar with a case for exemption. However, excluding the schemes from the Ordinance would not solve their problem. It would merely defer it to a future date.

End/Wednesday, March 29, 1995

72

Circulation of ten-dollar coins ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Allen Lee Peng-fei and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

With regard to the circulation of ten-dollar coins in the territory, will the Government inform this Council:

(a) of the respective amounts of ten-dollar coins and ten-dollar bank notes in circulation;

(b) whether the Government has set a timetable to demagnetise the ten-dollar bank notes; and how the Government will cope with the situation in which the public hoard up ten-dollar bank notes for use in 'lai-see’ packets during the Chinese New Year, which will cause delay in the recovery of such bank notes;

(c) whether the Government will consider amending the relevant provisions in the Coinage Ordinance stipulating the limit on the amount of coins which may be used as legal tender in view of the issue of ten-dollar coins; and

(d) whether the Government is aware of the public’s general dislike of ten-dollar coins; and whether consideration will be given to the concurrent issue of ten-dollar coins and banks notes so as to conform with the public’s preference?

Reply:

(a) There is a total of approximately $5,630 million in ten-dollar notes and coins in circulation, comprising $730 million ten-dollar coins and $4,900 million ten-dollar notes.

73

(b) The Government has not set a timetable to demagnetise ten-dollar notes. Our plan is to leave the withdrawal of ten-dollar notes through normal wear and tear to the respective note-issuing banks. As ten-dollar notes remain legal tender, there is no urgency for Government to replace them all with coins and no concern therefore about their continued use in ’lai-see’ packets.

(c) In the drafting of the Coinage Ordinance in 1994, careful thought was given to the limit on the amount of coins which may be accepted as legal tender for payment as stipulated in section 2 of the Ordinance. We do not see a need for changing the limit of $100 for ten- dollar coins at this moment.

(d) When new coins are introduced, it always takes some time for the public to get used to them. This is a natural phenomenon which we also encountered when the five-dollar coins were first introduced. We expect the public’s acceptance of the ten-dollar coins to increase in due course. We do not intend to issue new ten-dollar notes and coins concurrently.

End/Wednesday, March 29, 1995

Voter registration for the new functional constituencies ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Frederick Fung Kin-kee and a written reply by the Secretary for Constitutional Affairs, Mr Nicholas Ng, in the Legislative Council today (Wednesday):

Question:

The Government has indicated that all working persons engaged in economic activities are eligible for registration as electors of the new functional constituencies in the forthcoming Legislative Council election, provided they are registered electors of geographical constituencies. In connection with this, will the Government inform this Council:

(a) whether it will write to the employees of organisations registered under the Societies Ordinance inviting them to register as electors of the new functional constituencies; if not, why not;

74

(b) how it will ensure that full-time employees of organisations which are neither registered businesses nor registered societies will register as electors of the new functional constituencies; and

(c) whether the failure of the organisations mentioned in (b) above to take the initiative to provide information on its employees to the Registration and Electoral Office is in contravention of section 23 of the Boundary and Election Commission (Registration of Electors) (Functional Constituencies and Election Committee Constituency) Regulation?

Reply:

(a) The Registration and Electoral Office (REO) has plans to request organisations registered under the Societies Ordinance to provide information of their employees. On receipt of such information, the REO will write to the employees concerned inviting them to register as electors in the nine new functional constituencies.

(b) The Government is conducting an extensive publicity campaign to ensure that full-time employees of organisations which are neither registered businesses nor registered societies are aware that they can, if eligible, become electors in one of the new functional constituencies. There are open appeals through television, radio and newspaper advertisements to encourage eligible persons to get themselves registered. They can pick up a voter registration form at any one of 1,500 outlets which include District Offices, Post Offices, housing estate offices and major bank offices. The publicity campaign will intensify and continue until registration closes on 1 June.

(c) Section 23 of the Boundary and Election Commission (Registration of Electors) (Functional Constituencies and Election Committee Constituency) Regulation provides sanction against organisations which fail to provide information upon request to the Registration Officer for the purpose of voter registration. If an organisation does not take the initiative to provide information on its employees to the Registration Officer, there is no contravention of section 23 of the above Regulation.

End/Wednesday, March 29, 1995

- 75 -

Labour Department’s “chips allotment" system ♦ ♦ ♦ ♦ ♦ *

Following is a question by the Hon Zachary Wong Wai-yin and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question:

It is learnt that some of the Labour Department's district offices have introduced a "chips allotment" system to regulate the number of cases handled each day. In this regard, will the Government inform this Council:

(a) which district offices in the Labour Department have adopted the "chips allotment" system in providing services; and

(b) whether the adoption of the "chips allotment" system is due to staff shortage of those district offices; if so, how and when the situation can be improved; if not, what are the reasons for adopting such a system?

Reply :

Mr President,

(a) At present, the Labour Department is providing services through a "chips allotment" system at all the nine offices of the Local Employment Services, all the four Occupational Medicine Units, and four of the ten offices of the Labour Relations Service.

(b) The 'chips allotment' system was not introduced because of staff shortage. This common customer service practice in the private sector was adopted by the Labour Department primarily to improve both the quality and efficiency of the Department's service to the public. This method enables the Department to provide services in an efficient and orderly manner. It is also an appointment system with an obvious advantage that customers waiting to be served can leave to deal with their own business and then return for the services at the scheduled time without unnecessary waiting. This system has so far been working well. The Department will nevertheless keep its effectiveness under constant review and bring about improvements as and when appropriate.

End/Wednesday, March 29, 1995

76

Pickpocketing at border checkpoints

*****

Following is a question by the Hon Mrs Selina Chow Liang Shuk-yee and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question :

In view of recent complaints from local residents about their identity cards being stolen by pickpockets in the restricted areas of the Lowu/Shenzhen border checkpoints, will the Government inform this Council:-

(a) of the number of such cases reported in the past year;

(b) whether the Government has taken any action on the reported cases; and

(c) whether the Government has discussed with the relevant Chinese authorities regarding the measures to be taken to combat these illegal activities?

Reply:

Mr President,

(a) In 1994, the Police received 14 reports of pickpocketing in the Lowu/Shenzhen border checkpoints. Out of these 14 cases, only two involved loss of identity cards. In the same year, a total of 234 "Lost or Stolen" reports were made at the Lowu Police Post; however, we do not keep statistics on how many of these cases involved loss of identity cards, nor whether they happened in the border check point area.

(b) The Police in Border District have formed a special Task Force to combat pickpocketing activities in the Lowu/Shenzhen border checkpoints since August 1994. Eight of the 14 pickpocketing cases were detected, with arrests made.

(c) The Police have addressed the Shenzhen authorities, through both Interpol and the Border Liaison Channel, regarding pickpocketing activities at the Lowu/Shenzhen border checkpoints. The Police maintain close liaison with their Shenzhen counterparts on this matter.

End/Wednesday, March 29, 1995

'll

Investment returns of retirement schemes *****

Following is a question by the Hon.Marvin Cheung and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

Is the Government aware of the investment returns achieved by retirement schemes in the territory; if so, will the Government inform this Council:

(a) of the total number of retirement schemes for which information on investment returns is available ("the known population"); ■

(b) of the period of time which this information covers ("the relevant period");

(c) of the total value of investments of such schemes during the relevant period;

(d) of the total number of retirement schemes in existence in the territory during the relevant period;

(e) of the total value of funds invested in the totality of retirement schemes in the territory during the relevant period;

(f) of the average annual rate of return on investments in the known population of retirement schemes during the relevant period;

(g) if the answers to (a) and (d) are different, whether the information on investment returns of the known population is representative of all retirement schemes in the territory during the relevant period and if so, what is the basis of this deduction; and

(h) if the information on investment returns of the known population is not representative of all retirement schemes in the territory, what information does the Government have in relation to the average investment returns of all retirement schemes in the territory during the past 20 years?

78

Reply:

(a) So far, the Registrar of Occupational Retirement Schemes has received only 3,000 applications for registration of schemes under the Occupational Retirement Schemes Ordinance. As there is no requirement for such applications to be accompanied by audited scheme accounts, the Registrar does not have comprehensive statistics on the investments of the schemes.

However, the Registrar has access to some investment statistics from market sources. Wyatt's Annual Reports on Measurement of Investment Performance Survey for Hong Kong Retirement Schemes are one reliable source of such information. The answers to the remaining questions are based on these reports.

(b) The latest (1994) Wyatt report covers the period from 1983 to 1994, and statistics for each intervening period (e.g. 1984/1994, 1985/1994, 1986/1994,.... etc.) and for the year 1994.

(c) The survey conducted by Wyatt covers 39 investment managers and 281 funds with a total investment value of HKS46.6 billion. It is not known how many schemes are covered.

(d) The number of existing occupational retirement schemes is estimated at about 20,000-25,000, of which 15,000 have been approved by the Inland Revenue Department for tax purposes. The numbers of such tax approved schemes during the relevant period are:-

Year Schemes Approved by I RD

1994 14,911

1993 13,400

1992 11,687

1991 10,266

1990 8,615

1989 7,181

1988 5,802

1987 4,826

1986 4,105

1985 3,658

1984 3,325

1983 2,943

19

(e) According to Wyatt, the HK$46.6 billion of investment funds surveyed represents about 40% of the total estimated funds under management in the retirement schemes industry. Using information from the Wyatt reports the aggregate value of retirement schemes should be as follows:

Total

value

Wyatt’s Surveyed Schemes of funds Growth

Year Total value of funds K0%) Rate

HK$b HK$b %

1994 46.6 117 -11%

1993 52.6 132 61%

1992 32.7 82 9%

1991 30.0 75 20%

1990 25.0 63 0%

1989 25.0 63 25%

1988 20.0 50 0%

1987 20.0 50 18%

1986 17.0 43 70%

1985 10.0 25 33%

1984 7.5 19 150%

1983 3.0 8

(f) Based on Wyatt’s survey on investment returns for the total population of retirement schemes in Hong Kong from 1983-1994 (as shown below), the median annual rate of return is 16.3% per annum over the 12-year period. Discounting the average annual inflation factor of 8.8% (Hang Seng CPI) over the same 12-year period, there is a real rate of return of 7.5% per annum (after deduction of a fund management fee of about 1%).

Year Return in %

1994 -13.3

1993 53.3

1992 5.2

1991 16.1

1990 -3.4

1989 17.9

1988 11.7

1987 5.4

1986 41.2

1985 34.6

1984 4.4

1983 36.0

The real rate of return is reduced by administrative fees of between 3.5% on a monthly contribution of $2,000 and 6.5% on a monthly contribution of $400. During the initial years of contribution, the administrative charges may reduce the investment return by a considerable amount. However, as assets accumulate, the administrative charges become insignificant. A summary of the impact of these charges is annexed.

The Wyatt surveys, covering about 40% of the market, are used to assess the investment performance of existing schemes.

The Registrar does not have other reliable sources of information to gauge the investment returns achieved by retirement schemes during the past 20 years.

81

Annex

Impact of Administrative Charges on Investment Return

The following tables assume an investment return, net of investment expenses, at 16.3% -

Scenario I: After 1 Year

I Monthly Salary 1 Annual Contribution Asset Administration Fogs (as % of corrt) Reduction ] In return j

4,000 4.800 4.800 6.5 i 4.69%

8,000 9,600 9,600 5.5 3.97%

20,000 24,000 24,000 3.5 _ 2.52%

Scenario II: After 5 Years

i Monthly Salary । Annual Contribution Asset Administration Fees (as % of corrt) Reduction in return

• 4,000 4.800 28,800 6.5 1.08%

8,000 9,600 57,600! 5.5 0.92%

20,000 24,000 144,000' 3.5 0.58%

Scenario III: After 10 Years

Monthly Salary Annual Contribution • Asset Administration Fees (as % of corrt) Reduction ; in return 1 1

4'000 4,800 72,000 6.5 | 0.45%

8,000 9,600 144,000 5.5 0.38%

20,000 24.000 360,000 3.5 0.24%

Scenario IV : After 15 Years

[ Monthly Salary Annual Contribution Asset Administration Fees (as % of corrt) Reduction in return

4.000 4,800 144,000 6.5 0.23%

8.000 9.600 288.000 5.5 0.20%

20.000 24,000 720,000 3.5 I 0.12%

End/Wednesday, March 29, 1995

82

Student loan scheme for the Open Learning Institute

*****

Following is a question by Dr the Hon Samuel Wong Ping-wai and a written reply by the Secretary for Education and Manpower, Mr Michael Leung, in the Legislative Council today (Wednesday):

Question :

The Open Learning Institute (OLI) ceased receiving subvention from the Government at the start of the 1993-94 fiscal year and has become self-financing since then. Many students of the OLI are full-time workers who contribute to the well-being of the territory and are also prepared to sacrifice their spare time to study. The high course fees however discourage some of these workers from pursuing courses with the OLI. In this connection, will the Government inform this Council whether it will consider introducing a Student Finance Scheme for students of the OLI similar to that provided to students of local universities, so as to reduce the financial burden of workers pursuing courses with the OLI; if not, why not?

1 . v •.. V 1

* • U

Reply :

Mr President,

The Open Learning Institute was established to cater for the needs of people for self-enrichment and enhancement on a self-financing basis. As most of the students of the OLI are working adults who have decided to devote their time and money to further their studies on a part-time basis, it is not unreasonable to require them to meet the costs of their continuing education. The principle of self-financing ensures that the OLI will remain sensitive to the changing nature and level of demand for continuing education by working adults in Hong Kong.

The OLI has been self-financing since 1993/94. Despite several fee increases to cover inflation and rising real costs of meeting required academic standards, its attraction to people seeking opportunities for continuing higher education in Hong Kong has not been adversely affected. This is reflected in the continuous increase in the student population of the OLI in recent years as follows -

83

Percentage Student Percentage

Semester increase in fees population increase..iii student population

April 1993 - 13,902 -

Oct 1993 13.0% 15.058 8.3%

April 1994 - 16.182 7.4%

Oct 1994 21.2% 18.311 13.1%

There is no justification for introducing a Student Finance Scheme for the students of the OI I which is similar to that provided to needy full-time students studying in Hong Kong's University Grants Committee-funded tertiary institutions. The Local Student Finance Scheme provides grants and loans towards meeting the respective fees and living expenses of needy full-time students studying at the publicly funded tertiary institutions whilst they are dependent upon their families. However, Government will continue to look closely at the development of the OLI to ensure that the open access to continuing higher education is maintained particularly for those with lower than average salaries. In this regard. Government has given an one-off grant of $50 million to the OLI to set up a Student Loan Fund to finance its own Student Loan Scheme due to be launched in October 1995. The Scheme will be able to assist approximately 2,000 students, on a means-tested basis, and will assist, therefore, those with a much lower than average level of income.

End/Wednesday. March 29, 1995

84

Election-related campaign activities

*****

The following is a question by the Hon Fred Li Wah-ming and a written reply by the Secretary for Constitutional Affairs, Mr Nicholas Ng, in the Legislative Council today (Wednesday):

Question:

In the run-up to the Urban Council election, the Auxiliary Medical Services (AMS) organised free health-check days jointly with certain political groups in various districts in Kwun Tong. As some candidates standing for the election were members of the co-organisers of the functions, they were featured prominently both in the promotional activities preceding the functions as well as on the actual health-check days. In this connection, will the Government inform this Council:

(a) whether the expenses incurred by the political groups concerned in the above- mentioned promotional activities fall within the definition of "election expenses" set out in the Corrupt and Illegal Practices Ordinance;

(b) if the answer to (a) is in the affirmative, whether public organisations such as the AMS can participate or assist in any election- related campaign activities in support of any candidate bearing in mind that the AMS is a public organisation under the Security Branch and fully funded by the Government: if not, why the AMS has participated in the above- mentioned promotional activities in Kwun Tong; and

(c) how the Government will deal with those candidates who have participated in the above-mentioned promotional activities organised jointly with the AMS, particularly in regard to whether their candidature will be revoked and whether checks will be carried out to ascertain if the expenses incurred in such activities have been included in the returns of their election expenses?

85

Reply:

Under the Corrupt and Illegal Practices Ordinance (Cap. 288), expenses incurred or to be incurred before, during or after an election, by a candidate or by any other person on the candidate's behalf, on account of or in respect of the conduct or management of the election, or for the purpose of promoting or procuring the election of that candidate at that election are election expenses. Expenses incurred by political groups in a community function and in activities promoting that function would not be regarded as election expenses unless that function and related activities are used to promote or procure the election of a candidate or candidates in an election.

It is Government policy that the AMS, like any other Government departments, should not participate or assist in any election-related campaign activities in support of any candidate.

As part of its public service programme, the AMS provides first-aid and healthcheck services to the public in response to requests of local community organisations. About 1,500 such functions are carried out each year by the AMS. In the case referred to in Kwun Tong, two health- check days were held by a local resident organisation in February this year. The AMS participated in these functions as they fell under the ambits of its public service programme. The Boundary and Election Commission has not received any complaint that these functions and related activities were election-related campaign activities.

End/Wednesday, March 29, 1995

Assistance to operators and residents of aged homes ♦ * * * *

Following is a question by Dr the I Ion Lam Kui-chun and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

The Residential Care Homes (Elderly Persons) Ordinance provides for the control of residential care homes for elderly persons and sets out the space requirements and staffing ratio for operating these homes. In this connection, will the Government inform this Council :

86

(a) of the implementation date of the Ordinance; and

(b) whether compliance with the legislative requirements by private residential care homes will result in an increase in their operating costs; if so, whether the Government will consider providing financial assistance to the .operators of these homes to meet the increased costs or to the residents to meet any consequential increase in charges?

Reply :

The reply is as follows :

(a) The Residential Care Homes (Elderly Persons) Ordinance (90 of 1994), except for section 6, will come into operation on 1 April 1995.

(b) The Ordinance will regulate homes established for the residential care of elderly persons with the purpose of ensuring that these homes provide services of a reasonable standard. As a result of the Ordinance coming into effect, some existing residential care homes for the elderly will have to improve their space requirements, staffing ratios, fire safety measures and building services in order to comply with the licensing standards. Such measures will inevitably cause an increase in operating costs. Assistance to operators and residents of homes to meet such increases will be provided in the following ways -

(1) Operators may apply for up to 60% of the cost of the improvement works entailed from a $50 million financial assistance scheme. This scheme was established on the basis of recommendations made by the Working Group on Care for the Elderly. It is designed to encourage self-financing and private homes to remain in operation while meeting the improved standards.

(2) Residents of private homes for the elderly who are recipients of Comprehensive Social Security Assistance (CSSA) payments and who have difficulties in meeting increased fees resulting from the costs associated with necessary improvements will be assisted through special discretionary grants made under the CSSA Scheme.

87

The additional financial support available for both operators and residents to deal with any increased costs involved in enhancing the conditions in homes for the elderly should be adequate. But in the event that a home may need to be closed because the necessary improvements cannot be made at a reasonable cost, we are confident that we shall be able to find alternative places for any elderly persons who may be affected.

End/Wednesday, March 29, 1995

Emergency psychiatric service

*****

Following is a question by Dr the I Ion Huang Chen-ya and a written reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question :

Major disasters can precipitate many psychiatric illnesses, and emergency psychiatric service can effectively reduce such problems. In this connection, will the government inform this Council whether emergency psychiatric service is at present included in existing contingency plans in the event of a major disaster; if so, what kind of service will be made available; if not, when such service will be provided?

Reply :

Mr President,

Emergency psychiatric treatment is already available as part of the services provided by public hospitals to cater for major disasters or emergencies. In a major disaster, victims and their families exhibiting emotional problems will be conveyed to hospitals, where Medical Social Works will be mobilised to provide, inter alia, emotional support to them. In-patient psychiatric service, consultation and counselling by medical specialists will be arranged where necessary. Case workers from the Social Welfare Department will follow up victims to help them recover from the aftermath of the trauma. Long-term patients will be referred to specialist out-patient clinics and psychiatric day hospitals or mental hospitals for treatment.

End/Wednesday, March 29. 1995

88

Investment of Govt fund

*****

The following is a question by the Hon Steven Poon Kwok-lim and a written reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):

Question:

In view of the Barings incident, will the Government inform this Council:

(a) whether any of the Government's funds, including its reserves, are managed by the Barings Banking Group; if so,

(i) what the total amount is;

(ii) whether any losses have been incurred and if so, how much;

(iii) what instructions have been given to the Group regarding the investment strategy to be adopted in investing the Government's funds; and

(iv) whether the Group is allowed to invest the Government's funds in derivatives; if so, arc there any restrictions in investing in derivatives and what these restrictions are; and

(b) whether, in the light of this incident, the Government has reviewed its policies and instructions in relation to investing Government funds and reserves through fund managers, and whether the Government has issued guidelines to statutory bodies in relation to their fund investments?

Reply:

On (i), Barings International Investment Management Limited (BIIL) has been an appointed manager for a portfolio ol fixed income assets for the Exchange Fund. For both operational reasons and on grounds of commercial confidence the Monetary Authority does not disclose the sizes of the portfolios with the Exchange Fund's appointed mangers. Nevertheless, the sum total of all such portfolios is only a minor portion of the Exchange Fund in total.

89

On (ii), no losses have been incurred on the portfolio. Assets held in the Exchange Fund's name with BIIL's custodians were protected under the United Kingdom insolvency law throughout the period of Baring Group's administration.

On (iii), the Monetary Authority gives precise instructions to the appointed managers of the Exchange Fund, including investment objectives of the portfolios under their management, lists of authorised instruments and maximum positions and exposures. These exposures include exposures to banking counterparties.

On (iv), appointed managers of the Exchange Fund are allowed to invest in financial futures subject to very stringent restrictions; amongst other things these restrictions ensure that the appointed managers do not run open unhedged positions. Positions are reported daily to the Monetary Authority.

On (b), the Government keeps the guidelines to the appointed managers of the Exchange Fund under constant review. The Exchange Fund Advisory Committee has recently considered a report by the Monetary Authority on the wider implications of the Barings episode for the Exchange Fund's funds under outside management. The enabling legislation for statutory bodies require the prior approval of the Financial Secretary before statutory bodies may invest funds. These recent developments will be borne in mind in considering any future applications.

End/Wednesday, March 29, 1995

DAILY INFORMATION BULLETIN

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

Thursday, March 30,1995

Contents Page.No..

CS demands immediate return of vessels and crew.............................. 1

Transcript of Chief Secretary's media session................................ 2

I

CS sees fire-fighting and rescue services.................................... 4

Three lots sold for $1,825 million........................................... 5

Public housing flats allocated to 20 fire victims............................ 6

New series of Effective Exchange Rate Indices................................ 6

New measures to control vehicle emissions.................................... 10

Call-back services........................................................... 11

1.29 million employees' information for voter registration in new FCs received 16

Hong Kong Monetary Authority money market operations......................... 18

1

CS demands immediate return of vessels and crew *****

The Government has registered its very serious concern with the Chinese authorities about the recent incursion of a Chinese vessel into Hong Kong waters and requested the immediate return of both the vessels and crewmen on board.

Commenting on the incursion after visiting the Fire Services Department this (Thursday) afternoon, the Chief Secretary, Mrs Anson Chan, said: "We very much hope that the Chinese will take immediate action to return the vessels and the crewmen and give an undertaking that it will do everything it possibly can to prevent such incursions." :

She noted that the Deputy Commissioner of Police had led a delegation and was currently having talks with the officials of Guangdong Provincial Security Bureau.

"I might also add that Mr Goodlad, the Minister responsible for Hong Kong affairs, will be seeing the Chinese Ambassador in the United Kingdom to raise this incident and to put across our concern.

"At the same time, the British Embassy in Beijing will also be raising this incident with the Ministry of Foreign Affairs," she said.

Meanwhile, Mrs Chan was happy to note that the number of incursions had decreased in recent years.

"We want to make sure that this decreasing trend continues," she said.

End/Thursday, March 30, 1995

2

Transcript of Chief Secretary’s media session ♦ ♦ ♦ ♦ ♦

Following is the transcript of the media session by the Chief Secretary, Mrs Anson Chan, after visiting the Fire Service Department today (Thursday):

CS: Good afternoon everyone. I have just spent the afternoon with Mr Lam, Director of Fire Services, seeing for myself the services that the Fire Services Department provide and the resources available at their disposal. I was very impressed. I haven’t realised that the Fire Services Department provides such comprehensive services, both on fire-fighting and on rescuing people and providing ambulance service. I must say that after this visit I am much more confident when we have a fire or when I require an ambulance service.

We have received quite a number of press questions regarding the recent incursion into Hong Kong waters on March 18. So I want to take the opportunity this afternoon to put the matter in perspective and to make a number of clarifications. As you know this incursion took place on March 18. It was clearly an incursion into Hong Kong waters. This fact was admitted both by those responsible on board the vessel and by the Zhuhai Authorities. Our concern is principally because it took place in Hong Kong waters, it involved the detention and forcible removal of Hong Kong vessels and the crewmen on board. We have as you know registered our serious concern with the Chinese authorities through the NCNA. The Political Adviser has again registered our concern with the NCNA almost on a daily basis and we are requesting the immediate return of both the vessels and the crewmen on board.

You also know that the Deputy Commissioner of Police has led a delegation and is currently having talks with those responsible in the Guangdong Provincial Security Bureau, again putting forward our very serious concern and requesting the immediate return of the vessels and the crewmen on board. I might also add that Mr Goodlad, the Minister responsible for Hong Kong affairs, will be seeing the Chinese Ambassador in UK to raise this incident and to put across our concern. At the same time the British Embassy in Beijing will also be raising this incident with the Ministry of Foreign Affairs. We very much hope that the Chinese will take immediate action to return the vessels and the crewmen and will give an undertaking that they will do everything they possibly can to prevent such incursions. We have of course been very happy to know that in the recent years, the number of such incidents, such incursions have in fact decreased. We had I think about 15 cases in 1993. This had gone down to about seven in 1994 and so far this year, we have had only one incident. We want to make sure that this decreasing trend continues.

Question: Does this mean that the Chinese side has not been co-operative?

3

CS: Well, the Deputy Commissioner is discussing the issue with the Security Bureau and I very much hope that there will be a positive outcome to our talks and to our concern.

Question: Mrs Chan, are there better measures devised in dealing with this kind of incidents?

CS: What I think the best measure is for the Chinese to ensure that such incursions do not take place in future. I don’t think there is much difficulty in deciding which are Hong Kong waters and which are Chinese waters and on this occasion there was absolutely no doubt that the incursion had been into Hong Kong waters and that’s why we are very, very concerned.

Question: The Chinese side stands firm on the 1997-98 Budget issues. They are going to take a leading role. What are your reactions, please?

CS: The talks that are currently taking place, in fact I think it has just ended, on our side led by Donald Tsang and on their side led by Mr Chen Zuo’er. The parameter of this talk, you are all very clear about, i.e. that the discussion is on the transitional Budget, which is the 1997-98 Budget, that in order for our Chinese friends to understand exactly how the 1997-98 Budget will be drawn up, it is necessary for us to use as an example the procedures that we go through in compiling the 1996-97 Budget so that they fully understand the procedures that we have to go through. And there are a set of very complex procedures and a great deal of information involved. So I’m sure that during the discussion that has just ended, Donald has explained to the Chinese experts the exact procedures that we go through. And we hope very much that the Chinese will observe in the context of the 1996-97 Budget so that they can better understand and participate constructively in the 1997-98 Budget.

Question: Any indication that Hong Kong Government will not accept China’s suggestion that they take a leading role in 1997-98 Budget?

CS: I have already said to you we very much hope to work together and to consult our Chinese counterparts the preparation of the 1997-98 Budget.

End/Thursday, March 30, 1995

4

CS sees fire-fighting and rescue services *****

The Chief Secretary, Mrs Anson Chan, had a closer look at the territory's rescue, fire-fighting, ambulance and fire prevention services during her visit to the Fire Services Department this (Thursday) afternoon.

Accompanied by the Director of Fire Services, Mr Lam Chek-yuen, she first called on the Tsim Sha Tsui Fire Station where she was shown the various types of fire engines and ambulances, including the newly commissioned Mobile Casualty Treatment Centre.

Mrs Chan was also briefed by front-line firemen and ambulancemen on the use of many rescue tools, such as survivor detector, breathing apparatus, chemical protection suit, deep sea diving equipment and defibrillator.

To show how firemen tackle a No. 1 alarm fire and rescue trapped persons, a demonstration was held in the drill yard.

This was followed by a tour of fireboats where the Chief Secretary was briefed on the deployment and future development of the fireboat fleet. Then she departed for the department's Headquarters at Tsim Sha Tsui East to see the operation of the fully computerised Communication Centre which handled more than 475,000 fire, special service and ambulance calls last year.

Following that, Mrs Chan visited several divisions of the Fire Protection Bureau, which is responsible for formulating and enforcing fire safety regulations and policies, as well as assisting and advising the public on fire protection measures and the abatement of fire hazards.

Before concluding the visit, Mrs Chan had a brief discussion with the department's director, deputy director and a number of senior officers.

End/Thursday, March 30, 1995

5

Three lots sold for $1,825 million *****

Three lots of Government land were sold for a total of $1,825 million at a public land auction held by the Lands Department this (Thursday) afternoon.

Another lot for industrial or godown use at the junction of On Lai Street and On Yiu Street, Sha Tin, was withdrawn because no bidding was made for the opening price of $400 million.

The first lot situated in King's Park Rise, Kowloon, was bought by Lane Success Development Limited at $1,330 million,with bidding opening at $980 million.

The lot has an area of 15,644 square metres for private residential use. The developer has to complete a gross floor area of not less than 13,440 square metres on or before September 30, 1998.

The second lot. located in Sha Ha. Sai Kung, was sold to Grand Apex Limited at $30 million, with bidding opening at $ 15 million.

The 900-squarc-mctre lot is intended for private residential use. The developer has to complete a gross floor area of not less than 324 square metres on or before March 31, 1998.

The third lot at Town Park Road North, Yuen Long, was sold to Cosmos Gain Investment Limited at $465 million, with bidding opening at $450 million.

It has an area of 16,301 square metres for private residential use.

The developer has to complete a gross floor area of not less than 29,342 square metres on or before September 30, 1999.

Held in the Concert Hall of the Hong Kong Cultural Centre,Tsim Sha Tsui, the auction was conducted by Government Land Agent, Mr Nigel Burley.

End/Thursday, March 30.1995

6

Public housing flats allocated to 20 fire victims ♦ ♦ ♦ ♦ ♦

A total of 20 fire victims of a bedspace apartment at 35 Yeung Uk Road have been allocated single person public housing flats in Tsuen Wan, Kwai Chung and Tsing Yi by the Housing Department today (Thursday).

A spokesman for the Home Affairs Department said these victims were recommended by the Social Welfare Department for compassionate rehousing.

’’The Tsuen Wan District Office is co-ordinating the relevant departments in processing applications from other victims,” he added.

End/Thursday, March 30, 1995

New series of Effective Exchange Rate Indices *****

A new series of Effective Exchange Rate Indices (EERI) will be published by the Census and Statistics Department as from Saturday (April 1).

There are two major improvements in the new series of EERI over the old series.

First, owing to significant changes in Hong Kong's trade patterns in recent years, the trade weights based on the average trade patterns of 1984 to 1986 require updating. To reflect the more recent trade patterns, a set of new trade weights, based on the average trade patterns of 1991 to 1993, has been selected for compiling the new EERI series from 1991 onwards.

Second, in view of the increasing significance of Thailand and Malaysia in their bilateral trade with Hong Kong and in world trade, the basket of currencies has been enlarged to cover the Thai baht and the Malaysian dollar for compiling the new EERI as from 1991.

In addition to the above two improvements, the base period of the series will be changed from October 24-28, 1983 to November 1983.

7

The use of a month as the base period is more in line with international practice. Like the existing base period, the new base period is chosen because it is still close to October 17, 1983, the date on which the Hong Kong dollar (HKD) started its link with the US dollar.

The above changes will improve the accuracy and representativeness of EERI in measuring the relative strength of the HKD.

Trade values are used as weights for the compilation of the indices. Based on import values, export values and total trade values, three separate series of EERI, viz. import- weighted, export-weighted and trade-weighted, are compiled.

Table 1 presents the old and the new series of EERI on an annual basis from 1991 to 1994, and on a monthly basis from January 1991 to February 1995. Table 2 compares the import weights, export weights and trade weights attached to each selected currency for the old and the new series of EERI.

The new series of EERI indicates that, between February 1991 and February this year, the HKD appreciated by about 14.5% against the 17 selected currencies.

This differs from the change observed in the old series, which indicates an appreciation of about 11.5% against the 15 selected currencies. The difference is partly attributable to the increase in the relative importance of trade with China and the depreciation of the Chinese renminbi.

For the new series of EERI, daily indices will be available back to January 2, 1994, monthly indices back to 1981 and annual indices back to 1975.

The new EERI will be released on a daily basis by the Census and Statistics Department starting from April 1.

A feature article giving more details of the new series of EERI will appear in the April issue of the Hong Kong Monthly Digest of Statistics to be published by the Census and Statistics Department at the end of next month.

Enquiries on EERI may be directed to the Census and Statistics Department on tel 2582 4914.

8

Table 1 : Comparison of old and new series of EERI

Year Month Trade-weighted Import-weighted Export-weighted

New Old New Old New Old

1991 111.4 111.6 105.8 106.4 117.7 117.3

1992 111.1 111.3 104.7 105.5 118.1 117.8

1993 113.2 113.0 105.8 105.8 121.7 121.1

1994 126.8 123.6 116.4 115.3 138.6 133.1

1991 1 108.1 109.1 103.0 104.1 113.9 114.6

2 107.4 108.3 102.2 103.1 113.3 114.1

3 109.5 110.5 104.3 105.7 115.3 116.0

4 110.8 111.8 105.4- 106.9 116.9 117.3

5 111.5 112.5 106.1 107.6 117.6 118.0

6 113.3 114.3 107.7 109.4 119.5 119.8

7 112.9 113.8 107.1 108.8 119.2 119.5

8 112.2 113.1 106.4 108.0 118.5 118.8

9 111.4 112.4 105.7 107.2 117.9 118.2

10 111.1 111.9 105.1 106.5 117.7 118.0

11 110.2 111.1 104.2 105.6 116.8 117.2

12 109.2 110.1 103.3 104.6 115.8 116.3

1992 1 109.2 110.1 103.0 104.3 116.2 116.7

2 110.0 111.1 103.7 105.3 117.1 117.6

3 111.3 112.5 105.2 107.1 118.2 118.6

4 111.7 112.8 105.6 107.4 118.5 118.8

5 110.9 112.0 104.7 106.5 117.9 118.2

6 109.9 110.9 103.6 105.2 116.9 117.4

7 108.7 109.8 102.5 104.0 115.6 116.3

8 108.4 109.6 102.4 103.9 115.2 115.9

9 108.7 109.8 102.5 103.8 115.7 116.5

10 109.8 110.9 103.3 104.7 117.1 117.8

11 111.8 113.0 105.1 106.8 119.3 120.0

12 113.0 114.0 106.2 107.8 120.7 120.9

1993 1 113.5 114.5 106.7 108.4 121.1 121.3

2 113.7 114.7 106.7 108.2 121.6 121.9

3 113.1 113.9 105.9 107.2 121.1 121.4

4 111.7 112.3 104.4 105.3 119.8 120.1

5 111.4 112.0 104.0 104.9 119.7 120.1

6 111.6 112.2 104.0 104.7 . 120.2 120.6

7 112.2 112.6 104.5 105.2 120.8 121.1

8 111.9 112.3 104.1 104.5 120.8 121.1

9 111.8 112.2 104.1 104.7 120.4 120.8

10 112.2 112.6 104.6 105.2 120.8 121.1

11 113.0 113.4 105.3 106.0 121.7 121.8

12 113.4 113.8 105.7 106.5 122.0 122.1

9

Table 1 (continued) : Comparison of old and new series of EERI

Year Month Trade-weighted Import-weighted Export-weighted

New Old New Old New Old

1994 1 129.6 127.3 119.5 119.8 140.9 135.8

2 128.4 126.1 118.1 118.0 140.2 135.2

3 127.8 125.6 117.4 117.4 139.7 134.8

4 127.4 125.2 116.8 116.8 139.5 134.7

5 127.0 124.8 116.6 116.6 138.8 134.1

6 126.5 124.2 116.2 116.0 138.2 133.5

7 125.1 122.7 114.6 114.1 137.0 132.5

8 124.9 122.6 114.5 114.2 136.7 132.3

9 124.0 121.8 113.6 113.3 135.9 131.6

10 123.4 121.2 113.1 112.7 135.2 131.0

11 123.4 121.2 113.0 112.6 135.3 131.1

12 124.0 121.8 113.6 113.3 135.8 131.4

1995 1 123.3 121.1 113.0 112.7 134.9 130.8

2 123.0 120.8 112.7 112.3 134.7 130.6

Table 2 : Comparison of new trade weights (1991-1993) and old trade weights (1984-1986) for EERI

Trading Partner Trade weight(%) Import-weight(%) Export weight(%) 1991-93 1984-86

1991-93 1984-86 1991-93 1984-86

China 32.18 27.06 29.51 28.16 34.90 25.98

USA 17.62 23.83 8.71 10.63 26.75 37.78

Japan 12.78 15.09 19.29 24.35 6.11 5.30

Taiwan 9.47 6.20 14.90 9.03 3.90 3.19

Germany 4.43 4.08 2.30 2.74 6.60 5.49

Singapore 4.09 4.43 5.03 5.28 3.13 3.54

South Korea 3.81 4.01 5.50 5.57 2.08 2.37

UK 3.41 5.01 2.72 4.58 4.12 5.46

Italy 1.73 1.32 1.98 1.68 1.48 0.93

France 1.68 1.47 1.55 1.57 1.81 1.36

Australia 1.60 2.29 1.62 2.13 1.59 2.46

Switzerland 1.33 1.62 1.75 1.89 0.90 1.33

Canada 1.31 1.78 0.63 0.78 2.00 2.84

Thailand 1.30 0.00 1.55 0.00 1.04 0.00

Netherlands 1.21 1.04 0.58 0.63 1.86 1.48

Malaysia 1.15 0.00 1.49 0.00 0.81 0.00

Belgium-Luxemburg 0.90 0.77 0.89 0.98 0.92 0.55

Total 100.00 100.00 100.00 100.00 100.00 100.00

End/Thursday, March 30, 1995

10

New measures to control vehicle emissions * ♦ * * *

The Environmental Protection Department said today (Thursday) that two measures will take effect from April 1 this year to reduce air pollution caused by vehicle emissions.

The department’s Principal Environmental Protection Officer, Mr Alex Ng, said under the Air Pollution Control (Vehicle Design Standards) (Emission) (Amendment) Regulations, more stringent emission standards for newly registered vehicles would be introduced.

He said a cleaner diesel fuel with sulphur content not exceeding 0.2 per cent would also be introduced under the Air Pollution Control (Motor Vehicle Fuel) Regulation to tie in with the introduction of new vehicles into Hong Kong to meet the tightened emission standards.

Mr Ng said: ’’From April 1, new European emission standards will be adopted for vehicles below 2.5 tonnes while the existing Japanese emission standards for these vehicles will be tightened.

’’For diesel vehicles above 2.5 tonnes, comprehensive US and European emission standards will be introduced."

He said: ’’Diesel vehicles are the primary targets of control under the regulations as they contribute to high levels of particulates in our air which consistently exceed our Air Quality Objectives.

"The new control measures, which will help reduce particulate emissions, are part of the Government's plan to tackle the vehicle pollution problem," Mr Ng added.

End/Thursday, March 30, 1995

11

Call-back services

*****

The Telecommunications Authority (TA), Mr Alexander Arena, released a Statement today (Thursday) concluding his study of the regulatory status of call-back services.

’’Call-back services do not infringe HKTI's licence to provide exclusively certain external circuits and services,” Mr Arena said.

Hong Kong Telecom International Ltd (HKT1) had requested that the TA gave a formal view on the regulatory status of the different types of call-back services, and in particular their consistency with the HKTI licence. HKTI contended that in its view the call-back services do infringe HKTI's exclusivity.

The TA has concluded that call-back operators are not providing an external public telephone service to subscribers to the public switched telephone network in violation of the HKTI licence. Rather call-back operators merely provide access to the external public telephone service provided by HKTI.

"I reject HKTI's assertion of breach of its licence and I conclude that call-back services may continue to be provided competitively," Mr Arena said.

Copies of the complete Statement may be obtained from Senior Administrative Officer (Legislation & Planning) Miss Eliza Yau on tel 2961 6602 or on fax 2803 5112

The complete Statement is also accessible on OFTA's electronic bulletin board on tel no. 2834 0119.

Note to Editors:

Following is the Statement by the Telecommunications Authority (TA), Mr Alexander Anthony Arena, on "The regulator}' status of call-back services":

"Call-back services do not infringe HKTI's licence to provide exclusively certain external circuits and services."

12

INTRODUCTION

A variety of services are currently available in the Hong Kong market under the generic title of call-back services. These services use a number of different technical methods to allow consumers to take advantage of any differential that may exist between the prices for outgoing and incoming "international" calls, thus effectively allowing consumers to decide whether to establish the call from Hong Kong or from the other end of the international circuit. With the continuing development of technology it is likely that future call-back services will utilize even more advanced techniques. Attachment 1 provides some details on the operation of some of the commonly available call-back services. These services are experiencing a major surge in activity throughout the world and have been the subject of attention by a number of national telecommunications regulators. They are likely to continue to be subject to regulatory scrutiny consistent with the particular regulations which apply in each regime. In Hong Kong, the Hong Kong Telecom International (HKTI) licence forms a key component of the regulatory structure.

On 9 July 1994 HKTI requested from the Telecommunications Authority (TA) "a formal view on the regulatory status of the different types of "call back" services, and in particular their consistency with the HKTI licence". Further HKTI contended that in its view the call-back services do infringe HKTI's exclusivity. In response to requests to substantiate this claim, HKTI provided a detailed submission to the TA on 13 September 1994.

THE TA's ROLE

HKTI's assertions as to the extent of its monopoly raise questions of the approach which the TA should adopt, charged as he is with the duties of regulating the telecommunications industry within Hong Kong. For the purposes of proper regulation and control, the TA must form a view as to the nature and extent of that monopoly.

However, it is important to emphasize that the TA must remain in a neutral position, taking an independent view of the extent of that monopoly. The TA's regulatory responsibilities impose the duty of standing above the contest between HKTI and those circuit or service providers who wish to engage in licensable activities in Hong Kong. If a telecommunications activity is licensable under the laws of Hong Kong, in particular the Telecommunication Ordinance, the TA must decide if it infringes HKTI's monopoly.

13

But in taking that decision the TA must be fair to both sides. It is no part of his duties to reinforce or extend HKTI's exclusive rights. There is no presumption in favour of exclusive rights. On the contrary, the prima facie position is that anyone may participate in the telecommunications industry', if licensed to do so. If HKTI can persuade the TA that its rights are being infringed, then he cannot grant a licence. But HKTI cannot use the TA's licensing function as a means of extending its exclusive rights beyond the strict terms of its licence, in particular the First Schedule to that licence, once properly construed. As HKTI itself submits, "determination of whether the provision of callback services in Hong Kong is permissible is a question of law, requiring interpretation of the HKTI Licence and the Telecommunication Ordinance."

TA's CONSIDERATION

In order properly to construe the HKTI licence it is important to focus upon two features:

* the nature of HKTI's function as a carrier of external services (external carrier);

* the history of the development of HKTI's exclusivities.

HKTI's Role. An analysis of HKTI's role as an external carrier requires a consideration of its functions in relation to the local network (the Public Switched Telephone Network (PSTN) in Hong Kong). HKTI is an intermediate carrier, taking part in a long chain of telecommunications which starts at a customer's premises in Hong Kong and ending at another destination outside Hong Kong. Many operators participate in the processes necessary to pass messages and signals down that chain of telecommunications, wherever the process starts, whether overseas or locally. Their participation does not alter the part played by HKTI in the process. To define HKTI's role it is important to emphasise the nature of the local network and the functions of those who participate in that local network.

There are many methods of access to the chain of communication. The chain involves a complex series of interconnections. HKTI's obligation is to ensure connection with the local network, specifically that of the Hong Kong Telephone Company (HKTC) which has separate telephonic exclusive rights until 30 June 1995 by virtue of the Telephone Ordinance and the mobile carriers separately licensed under the Telecommunication Ordinance. Upon issue of licences under the Telecommunication Ordinance to new Fixed Telecommunication Network Services (FTNS) operators, they too will form part of the local network. By virtue of its licence, HKTI is required to provide connection with the local network in accordance with conditions specified in the licence.

14

HKTI’s functions and rights as an external carrier only start at the point of interconnection between the local network and the international gateway. HKTI has no function and no rights on the local side of the points of interconnection for telephony. HKTI does not participate in and has no exclusive rights over any part of the local telephone network. A similar situation exists on the other side of the circuit where HKTI must hand-off a call to other carriers which provide the relevant telecommunications services in that regime. Therefore, for telephony, HKTI’s domain lies between the interconnection point with the local network in Hong Kong and the interconnection points (notionally half-way along the international circuits) with its correspondent international carriers. This contrasts with the provision of internal Public Telegram Service and internal Public Telex Service as specifically listed in the First Schedule (items c and d) of the HKTI licence.

It is also important to note that HKTI has no right to dictate which direction it carries the signals and messages beyond the international gateway; it must carry them as presented - either to the Hong Kong gateway or from that gateway.

History of HKTI’s exclusivities. HKTI and its predecessor (Cable and Wireless) have been issued a series of licences stretching back before the Second World War. More recently a licence was issued in 1963 and the current licence was issued in 1981. The circuits and services exclusively reserved to HKTI are specified in the First Schedule to HKTI’s licence - a copy is provided at Attachment 2.

The development of the First Schedule shows a deliberate policy of successive Hong Kong Government Administrations that only particular circuits and services be exclusive to HKTI. It is undeniable that the list of circuits and services has grown over time in concert with the development of technologies and the increased breadth of services enabled by new technologies. But HKTI’s rights as an external carrier were never all embracing. History shows attempts by HKTI to obtain from the Hong Kong Government an all-encompassing monopoly. While the First Schedule extended rights over a period of time, attempts to achieve a complete monopoly were resisted and did not succeed. Moreover nothing granted to HKTI trenched upon the local public switched telephone network (the PSTN in Hong Kong).

As a matter of policy the Hong Kong Government has maintained its position that HKTI does not have an all-encompassing monopoly. This point was made by the Secretary for Economic Services in a speech to the Legislative Council on 3 June 1992 where it was reaffirmed in the following terms :

’’Further liberalization in international services is of course constrained by the terms of Hong Kong Telecom International’s licence which does not expire until 2006. There is, however, in our view still some room for further liberalization in international services without infringing the exclusive rights granted under that licence.”

15

The Government's Position Paper on Hong Kong's Telecommunications Policy of January 1994 also recognized the scope for liberalization of services outside of HKTI's exclusivities and the TA's responsibilities "to balance his obligation to protect HKTI's exclusivity with his responsibility to promote competition in services which lie outside that exclusivity".

Call-back Services. The essential question for the TA to answer is whether call-back services breach any of the items of the First Schedule to HKTI's licence.

HKTI has provided a detailed submission supporting its view that call-back services breach item (e) of the First Schedule, asserting that a call-back service is an international call service by indirect means which is in substance the provision of an external public telephone service. Item (e) reserves to HKTI "External public telephone services to subscribers to the Public Switched Telephone Network by radio, submarine cable and such overland cables as are authorized."

The TA agrees that only item (e) can be considered of interest. Therefore the TA concurs that HKTI correctly identifies the issue to be resolved, which is whether subscribers to the PSTN arc being provided with an external public telephone service in contravention of the correct reading of item (e).

The fact that HKTI is given, by virtue of item (e), the exclusive right to provide an external public telephone service to subscribers to the PSTN cannot, and does not, prevent the use of methods whereby an external call is converted to an incoming call, or is charged at a lower rate. Any caller may communicate with someone overseas so as to avoid paying the outgoing rate, telling the person overseas to call back. The reverse charging system and the use of a calling card both enable the local caller to initiate a call, make use of HKTI's infrastructure for the purpose of communication overseas, and yet neither are the provision of an external public telephone service; rather they are methods by which the customer obtains access to the HKTI system at a more favourable rate. The expression "external public telephone services" does not incorporate the provision of a means of access to the external public telephone service. Furthermore, as HKTI itself acknowledges the legal construction of the licence cannot depend upon the tariff HKTI is entitled to charge (that is, whether it is an outgoing or incoming charge).

By virtue of its licence HKTI has the exclusive right to carry signalling data and speech messages along the infrastructure it provides to connect the local network in Hong Kong to the overseas system. But other service providers (for example, HKTC, the PMRS operators and, in future, FTNS operators) are entitled to provide access through the local network in Hong Kong to HKTI's external network. The crucial point is that subscribers to the PSTN are not being provided with an external public telephone service at the point where they are being given access to the PSTN or at the point where they have their calls switched by the local network and routed to the international gateway. The external public telephone service only starts at the points of interconnection between the local network and the international gateway.

16

Call-back service providers may be regarded as merely providing access through the local network to the HKTI system from either or both ends but they are not carrying the telephone calls from the international gateway in Hong Kong to the overseas international gateway, or vice-versa. Indeed that carriage is the essence of the external public telephone service contemplated by the licence.

I conclude that call-back operators are not providing an external public telephone service to subscribers to the Public Switched Telephone Network in violation of item (e) of the First Schedule to HKTI’s licence. Call-back operators merely provide a method of access to that service. Further such access does not infringe any other element of HKTI’s licence. 1 reject HKTI’s assertion of breach of its licence and I conclude that call-back services may continue to be provided competitively.

End/Thursday, March 30, 1995

1.29 million employees’ information for voter registration in new FCs received *****

Information on more than 1.29 million employees for the voter registration in the nine new functional constituencies, or 45 per cent of the estimated total workforce, was received by the Registration and Electoral Office (REO) as at yesterday (March 29).

These returns, which cover the employers’ main line of business and the names and identity card numbers of their employees, were provided by 138,000 employers in response to the request by the REO for information.

A spokesman for the REO today (Thursday) said that so far the response from employers was reasonably good.

He urged those who has not responded to the REO's request to reply as soon as possible.

Meanwhile, staff of the Home Affairs Department are conducting follow-up visits to collect employees’ information from those employers who have not yet responded.

17

For the 1.29 million employee records received so far, sampling tests carried out by the REO show that about 48 per cent of the employees included in employers’ return are general electors on the General Electoral Roll (GER).

These employees will be registered in the new functional constituency by a simple procedure.

The REO is issuing notification to invite them to be registered as electors in one of the nine new functional constituencies according to their employer’s main line of business.

Those who do not receive one by April 15 should get a voter registration form from any of the 1,500 outlets in the territory to get themselves registered in time for the September Legislative Council elections.

These outlets include REO, district offices, housing estate offices, banks and post offices.

For the remaining employees who are not yet on the GER, REO will approach them through their employers to facilitate their registration in both the GER and a relevant new functional constituency.

I. .

As part of the next phase of the voter registration drive in April and May, Home Affairs Department staff will pay household visits to housing estates and set up mobile counters at vantage points in various districts to register eligible electors.

End/Thursday, March 30, 1995

18

Hong Kong Monetary Authority mopey market operations ♦ ♦ ♦ ♦ ♦ , 1T;"' * v 1 ; i ’■ ’ Cumulative Time change $ million (hours) (^million)

Opening balance in the account 2,292 Closing balance in the account 2,762 Change attributable to: Money market activity +413 LAF today .+57 LAF rate 4.25% bid/6.25% offer TWI 117.6 *-0.1* 0930 1000 1100 1200 1500 1600 . i? ■ •.. .■ i.<! 1 30.3.95 +277 +277 +418 +423 +413 +413 . . . . • • > * 1 ■ \ *

Hong Kong Monetary Authority

... . . ' .3 ... EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.32 14 months 1 month 5.21 , , 23 months 3 months 5.41 28 months 6 months 5.63 34 months 12 months 5.99 60 months 2605 2702 3707 3801 5003 6,35 100.37 7.50 101.88 6.95 100.76 8.00 103.01 7.75 101.83 6.09 6.53 6.70 6.92 7.44

Total turnover of bills and bonds - $30,119 million

Closed March 30, 1995

End/Thursday, March 30, 1995

DAILY INFORMATION BULLETIN

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

Friday, March 31,1995

Contents Page No,

Transcript of Governor’s media session.......................................... 1

Transcript of Financial Secretary’s media session............................... 4

-• I • ' '

Compassionate rehousing for 24 fire victims..................................... 6

Proposed LegCo election guidelines published.................................... 8

Annual Report on the Consumer Price Index 1994................................. 10

Census continues to conduct General Household Survey....................... 11

Money Statistics for February 1995 ..........................................   12

Period lodging Proposal for Alteration of Valuation List in April and May 1995 15

Hong Kong's throughput grows and grows......................................... 16

Lawyers invite to join Legal Department........................................ 17

Special campaign against problem factories...................................   19

Hong Kong Shipping Register ranks 15th in the world............................ 20

/Elderly home......

Contents

Page No.

Elderly home operators urged to apply a licence.......................... 21

Deputy Chairman of SFC appointed............................................. 22

Fee for enquiries on outstanding property tax revised........................ 23

Fight Crime Committee member appointed....................................... 23

Members appointed to the Board, Council of the Lord Wilson Heritage Trust... 24

Fresh water service reservoirs for Ho Man Tin and Tai Po..................... 26

Roadworks in Tai Po proposed................................................. 26

Tenders invite for Lo Wai roadworks.......................................... 27

Former Gate Lodge on Peak declared as historical building.................... 28

Removal of Family Court to Supreme Court Building............................ 28

All-day hotline on building matters.......................................... 29

"Dual access" period for the numbering change to end soon.................... 30

Hong Kong Monetary Authority money market operations..................... 31

1

Transcript of Governor's media session * * * ♦ ♦

The following is a transcript of the media session by the Governor, the Rt Hon Christopher Patten, today (Friday) after opening the exhibition "Focus at the Frontline" presented by the Hong Kong Press Photographers' Association:

Question: The Chinese side insisted that the 1996-97 Budget, the British side should fully consult the Chinese side's opinion and then the next Budget the Chinese side should play the leading role. What is your position on that?

Governor: I think the Financial Secretary is making a statement about that. Indeed, I think he has already done so, so 1'11 leave it to him.

Question: Mr Patten, what are your greatest concerns now about the seizure of the two vessels by the Chinese?

Governor: All of us want, I think, to avoid if at all possible, an incident like the one that most unfortunately occurred the other day becoming the focus for mounting concern. So I think we want, first of all, to keep that incident in perspective. We used to count the number of incursions into our waters each year in the 30s, 40s, even 50s. In 1993 we brought the number of incidents down and there were about 15 incidents; last year there were seven incidents; and this most unfortunate incident the other day was the first this year and indeed, the first since last October. So the first point I want to make is that clearly, the Chinese side and the Chinese officials have been trying very hard to reduce the number of incidents that occur like this one. But any incident is one too many.

We are obviously seeing what lessons we need to learn from what has happened. So far as the Chinese side are concerned, we obviously view what has happened with considerable anxiety, considerable concern. We have protested both here in Hong Kong and in London and in Peking. We want to see the incident resolved as rapidly as possible and to be able to go on attempting to eliminate any incidents like this and that has been our purpose throughout.

But clearly, there has been a change in the Chinese explanation of what's happened. The first description of what happened has now been adjusted and we are told that the Hong Kong vessels with Hong Kong crewmen on board were first of all arrested in Chinese waters, and now we are told they were forcibly being escorted through Hong Kong waters when the incident occurred. Well, if they were being forcibly escorted through Hong Kong waters, 1 don't think there is any real doubt that the jurisdiction is a matter for Hong Kong, so I very much hope that the vessels and the men on board will be returned to Hong Kong as soon as possible and that will enable us to close the book on this particular incident and get on with what we all want to do which is to see these sort of matters eliminated completely.

f

- 2 -

Question: Are you confident that taking the issue into the diplomatic level is the most effective way to bring the two people released?

Governor: 1 very much hope so. Judging by what Chinese officials have said, there may be some problems of communication between the centre and Zhuhai; and there were obviously, on the day - which I think is conceded - problems of communication between Zhuhai and the vessel in question. I repeat that the easiest and quickest way of resolving all this is to have the boats and the men returned.

Question: Governor, the Security Branch officials said that on this incident the Government don’t want to demonstrate it is a weak government and it has been reported that you ordered to use military vessels if there is going to be further incursions in HK waters.

Governor: All that we are keen to ensure is that if something like this happens there is proper co-ordination between the Marine Police and the Royal Navy and I think that is a view which is shared by the Police who have a very difficult job to do, and by the Navy as well. And it is primarily a matter which is the responsibility of the Police with the Navy, the Garrison in general there, to support our Police, should that ever be necessary. But we all want to draw what lessons we can.

I just want to repeat one other thing. Of course we want to protect our own waters. We want to ensure that others recognise our own waters and we want to protect our own residents and our own craft. We also want to co-operate in a proper way with the Chinese authorities in preventing smuggling and other illegal activities in and around our coasts and there is no argument between us and the Chinese authorities on that matter at all.

Now in trying to secure their objectives, we don’t want to put the lives and the welfare of our own Forces unnecessarily at risk and that is a consideration which you have to take account of whenever an incident like this occurs. At the end of the day, we have to remember that we have one of the best Police Forces anywhere in the world. The morale and the competence of that Police Force are matters which are always - always - at the top of my personal agenda. When people talk about the stability of Hong Kong, when they talk about the rule of law in Hong Kong, those are matters which are, above all, the concern of our Police. So it will always be my number one priority to give their morale and their ability to do their job competently my top priority.

Question: Do you think this incident that has just happened, and other incidents, are undermining seriously the morale of the Police Force? Arc their hands tied behind their backs?

3

Governor: No, I don't believe that is happening but obviously, whenever there is any question of morale it is a matter that I want to address very rapidly. And I would have thought, to be frank, that Chinese officials would recognise that too.

Question: Mr Patten, how far is Britain prepared to go to get these Hong Kong people back and these ships back?

Governor: Well, we addressed our concerns in both Peking and in London yesterday and I am sure that the Chinese authorities will have taken note of the extreme concern which we have about this matter.

Question: What is the correlation between weak or strong government on this issue?

Governor: I think that the remark that you are referring to is one that an official made in response to questions. 1 don't think he raised the issue himself. Okay?

Question: How can the rules of engagement on border protection be seen as adequate with Hong Kong people being abducted by Chinese gunmen in daylight?

Governor: The rules of engagement, both for the Police and for the Royal Navy, arc in our judgment wholly adequate. In ever}' circumstance what those on the spot and those who are able to consult have to weigh in the balance, is the security of our Police and the objective on the other hand which they want to achieve. And that is a difficult balance to strike and I don't want to second guess those who are in operational command.

Question: Taking this incident and other issues in the headlines these days, such as the Budget, such as the Civil Service late last year, are you not concerned that these incidents create a cumulative impression in the minds of the Hong Kong public that China is behaving as though 1997 is already here and that your authority is being undermined?

Governor: Well, what they do, if there are too many incidents like this, is obviously to create anxieties about 1997 and beyond and those are anxieties which none of us want to see, and those are anxieties which it is in everybody's interest to try to dispel. It's partly because we have to work together and co-operate together that I have been, remain and will always be very keen to talk to Director Lu Ping about these matters. There's been more controversy about that in the papers today, not because of anything I've said but because of things that Director Lu Ping has said. Let me make it absolutely plain: long before Director Lu Ping went to the United States, I invited him, once again - to be precise I invited him in February - to come and see me in Hong Kong next time he was able to be here. We recognise that his diary, perhaps, gets full up when he is coming to Hong Kong, so we gave plenty of notice which would enable him to find time in his, as they say, busy schedule next time he was in Hong Kong. There is an obligation on us to meet - it is in the Memorandum of Understanding.

4

The fact that our Commissioner in Washington wasn’t able to respond to a dinner engagement by a foundation when Director Lu was speaking to it, is frankly, I think everybody recognises, neither here nor there.

We look around the world, we see people talking in every country, in every continent, about matters which are far more difficult, far more vexatious than the ones which affect us in Hong Kong. So people do argue, I think, people do wonder why one or two Chinese officials are the odd men out when all over the world we’re trying to resolve these matters through discussion and through co-operation.

It will remain my position until June 30, 1997 that my door, the Chief Secretary’s door, everybody's door is open for discussion. And when a matter has happened, like the one the other day, which we are trying to resolve in a firm but low-key manner, when matters like that happen it underlines the importance of consultation and co-operation. We have shared interests in Hong Kong and I hope, frankly, that Chinese officials will recognise that from time to time.

End/Friday, March 31,1995

Transcript of Financial Secretary's media session ♦ ♦ ♦ ♦ ♦

Following is the transcript of the media session by the Financial Secretary, Sir Hamish Macleod, at Central Government Offices on transitional Budget matters today (Friday):

Good morning,

I thought it would be useful just to try and clear up some of the confusion that seems to be arising about the talks on the 1997-98 Budget.

The subject actually goes back quite a long way. Back in June last year, Ambassador Guo, in the JLG talks at that time made a proposal; the proposal was that we should consult on the 1997-98 Budget and brief them on the procedures used for the preceding budget, that is to say the 1996-97 Budget. So that was their proposal.

And we went back in November with more detailed proposals on how to do precisely that, that is to say do what the Chinese side had suggested. We got a positive response at that time to our reaction to their proposal. It came up again in a meeting in December. Again, we had no indication that there were any problems on this issue, and in particular on the scope of the talks. I then further gave some details of our proposals, of course, in the Budget Speech again. Even by then, no problems had emerged.

5

So we are very puzzled. We are very puzzled. Why just a day or two before the talks, in fact the day before the talks I think, this whole issue of the scope of the talks was raised. And as you know, it took some discussions to resolve that but it was resolved, and I’m very pleased that it was resolved. And, of course, an agreed basis was reached and was announced and the agreed basis was that we would discuss the transitional Budget and related matters and, of course, the transitional Budget is the 1997-98 Budget. So all seemed clear and we set off for the talks in good heart, thinking that it was absolutely agreed what we were talking about.

So I am very disappointed that even after the talks, again doubt is being thrown by the Chinese side on what the talks should be about. Actually, we’ve had a consistent line. We’ve agreed with the Chinese side with what they put forward in June and as I say, I am extremely disappointed that this unnecessary argument has emerged at this late date. So that is the background.

Now, we won't let that affect our attitude. We will continue in expert talks to do what we were asked to do, in good faith. We have a detailed programme which we want to discuss with the Chinese side and take them through so that they can follow the procedures for the 1996-97 Budget and then we can consult them on the transitional Budget.

So that is the history. Any problems which have emerged are completely unexpected and I am extremely puzzled why they have emerged at this late date. Questions?

Question: The Secretary for the Treasury, Donald Tsang, said this morning in Beijing that if both sides focus on the practical issues, that would help in narrowing any differences of the principles for the formulation of the Budget. What exactly are these practical issues and how will they help?

•»

FS: Well. 1 think he is probably referring to the fact, as 1 said, that we have a detailed programme set out. We want to discuss the whole budget procedure - the resource allocation procedure which goes along with it. We want to do extensive briefirfgs. And "briefings", by the way, was a word which they used back in June 1994. There is nothing controversial about the word "briefings". So I think Donald is saying what I am saying, that having set the record straight, we must put that behind us and get on with the talks in an appropriate spirit. But that is what the talks are about. That has to be clear.

Question: But that wouldn't resolve the differences over principles would it?

6

■s IFS: I don't believe there are any differences of principle, as I said, because what we doing is actually precisely what Ambassador Guo asked us to do back in June 1994. So 1 don't think there are any real issues here whatsoever.

Question: So . while you are puzzled, do you have any impression that the whole issue is now being (inaudible)?

FS: Sorry, I missed the last bit?

Question: Do you have an impression that the whole thing is now trying to shift from purely practical things to political issues?

FS: Well, 1 hope not. 1 mean if this is handled sensibly, these arguments will blow over and we will get down to the real discussion which is: procedures for the next budget and consultation on the transitional Budget. That is where we should be.

Question: And the Chinese side said that there should be a full consultation of the 1996-97 Budget and (that) should be before the draft. Is it possible once the Chinese side - there is an objection of the 1996-97 Budget, the Government will do it unilaterally?

FS: The Chinese side will have to explain why they have suddenly changed their view. The fact is, they didn't ask for consultation on the 1996-97 Budget, they asked tor a briefing on the procedures. That is what we are giving them. So there isn't a problem unless someone wants to create one. 1 here really isn't a problem. What we are doing is what they asked us to do. Thank you very much.

End/Friday, March 31,1995

' Compassionate rehousing for 24 lire victims

*****

The Government has completed processing all applications for compassionate rehousing from fire victims of the bedspace apartment at Yeung Uk Road in Tsuen Wan. a Government spokesman said today (Friday).

Of the 41 lodgers, 26 have been assessed by the Social Welfare Department (SWD) to be eligible for compassionate rehousing on the basis of their age, health and income.

7

"Nineteen of them have today been given the keys to their new homes in public housing estates in Tsuen Wan and Kwai Chung. Five others will get theirs in a few days and the applications of the remaining two are being vetted," the spokesman said.

The 15 singletons who are not eligible for compassionate rehousing have been offered three choices of accommodation assistance.

The spokesman pointed out that since the owner of the flat had indicated that the apartment will not be refurbished or rented out again, these singletons are now homeless.

"Under existing government policy, they may choose to go to Temporary Housing Area units in the New Territories. Several units in Tsing Yi are available to them.

"Alternatively, they may choose to move into one of the singleton hostels run by the Home Affairs Department. The third option is Housing Department's transit centre at Kwok Shut Road. Tsuen Wan."

A few residents on the floor above the bedspace apartment are also demanding rehousing by Government. However, they are not eligible because government building surveyors and structural engineers have inspected the building three times and identified no structural damage.

Besides, the owner of the Hat has commenced repairing the minor damages caused by the fire and confirmed that he would continue to let out the rooms.

"In this case, these residents are not homeless and therefore there is no question of rehousing because of the lire.

"However, if any of them believe they have a case for compassionate rehousing, they should approach the SWD. Their cases will be assessed immediately," the spokesman added.

Meanwhile, Chairman of the Housing Authority, Ms Rosanna Wong, has offered to meet representatives of fire victims on Monday (April 3) at the Housing Authority Headquarters.

End/Friday, March 31. 1995

8

Proposed LegCo election guidelines published * * * * *

The Boundary and Election Commission (BEC) today (Friday) published its proposed guidelines on election-related activities in respect of the Legislative Council Elections for public consultation.

The BEC Chairman. Mr Justice Woo Kwok-hing, said at a press conference that the guidelines were aimed at ensuring that elections would be conducted openly, fairly and honestly.

The one-month public consultation will start tomorrow and last until April 30. During the period from April 12 to 22. the BEC will meet, by appointment, interested individuals and organisations to receive their oral or written representations.

The 16-chapter proposed guidelines explain in detail the electoral procedure, the regulations which candidates and their agents should observe and the areas to which they should pay special attention.

Mr Justice Woo said, in drawing up (he draft guidelines, the BEC had used the electoral guidelines for the 1994 District Board Elections and the 1995 Municipal Council Elections as blueprints.

Experience in the two elections were also drawn formulating the proposed arrangements for the LegCO Elections on September 17.

There will be 20 scats for geographical constituencies (GC), 30 scats for 29 functional constituencies (FC) and 10 seats for the election committee constituency (ECC).

A number of new arrangements were proposed. These include:

* A "centralised" polling station each for the ECC and the three FCs with the smallest number of electors (Urban Council. Regional Council and the Rural FCs).

As regards the remaining 26 FCs. polling will be held on a territory-wide basis, in the same polling stations designated for the GC elections.

Under this arrangement, the majority of the electors will be offered maximum convenience as they will be able to cast their votes for both GC and FC at the same polling station near their homes.

9

The GC ballot papers will be white and the FC ballot papers will be of different colour patterns.

* In each polling station, there will be two sets of ballot boxes, one for the GC and the other for the 26 FCs.

Candidates and agents may observe from behind the issuing desk in a polling station the work of the polling staff

Two candidates or their agents will be allowed to escort the sealed ballot boxes after the close of poll to the counting station. This arrangement would enhance transparency and public confidence in the electoral process.

* There will be one counting station for each of the ECC, the Urban Council, the Regional Council and the Rural FCs. The venue for the counting station may be the same as the polling station. The counting of votes for the 20 GC and 26 FCs will be undertaken in a central counting station.

* A large "no canvassing area" will be designated outside each polling station to ensure the free and safe passage ofclectors into the polling station. A "no staying area" will also be designated immediately outside the entrance of a polling station to avoid any obstruction of entry.

* Publication, distribution and display of any election advertisement by a prospective candidate before he submits his nomination paper will be subject to the control provisions which include the requirements for the serial numbering, declaration and return and deposit of copies and samples etc.

* There will be new arrangements for the display of election advertisements for candidates of the different elections. Apart from private properties, display spots on government land and properties will be subject to allocation to candidates by the drawing of lots.

* The Housing Department has agreed to reduce the time limit to one clear working day for application to conduct electioneering activities in housing estates under its management. This improvement would offer candidates with more conv cnicnce.

10

The Chairman said the BEC was aware of suggestions for a "cooling off day" on the polling day when all electioneering activities will be banned.

"The Commission’s preliminary view is that implementing such a proposal would entail considerable practical difficulties and has thus proposed to set up a "no canvassing area" outside each polling station.

"The Commission will be happy to listen to public views on this issue. We also hope to meet interested organisations to discuss the enforcement problems and the arrangements to maintain order on the polling day," he said.

Mr Justice Woo expects to complete making the relevant subsidiary legislation and to publish the finalised guidelines in early July.

End/Friday, March 31, 1995

Annual Report on the Consumer Price Index 1994

*****

The Annual Report on the Consumer Price Index (CPI) for 1994 has recently been published by the Census and Statistics Department. The report provides a detailed analysis of the movements of the CPI(A). CP1(B), Hang Seng CPI and Composite CPI in 1994.

Charts and tables showing movements of the CPIs by individual commodity/service components and their contributions to the overall change in the indices are also presented in the report.

The report is a bilingual publication in both English and Chinese. Apart from statistics on the CPIs, the report also contains a detailed explanation of the concepts and computation method of the CPIs so as to help readers to gain a better understanding of the CPIs.

The report is now on sale, at HKS32.00 a copy, at the Government Publications Centre, Queensway Government Offices. Low Block. Ground Floor, 66 Queensway; and the Publications Section of the Census and Statistics Department, 19th floor, Wanchai Tower. 12 Harbour Road. Wan Chai. Hong Kong.

Enquiries concerning this report can be directed to the Consumer Price Index Section of the Census and Statistics Department on telephone 2805 6403.

End/Friday, March 31. 1995

11

Census continues to conduct General Household Survey *****

The Census and Statistics Department continues to conduct the General Household Survey during the quarter from April to June this year.

The survey, conducted on a continuous basis, collects information on employment, unemployment and underemployment, and the general social characteristics of the population.

In addition, questions on Hong Kong residents' expenditure abroad, worker displacement in Hong Kong, hospitalisation and household expenditure on rent will be included in this round of the survey.

Each quarter, about 12.000 households from all districts are selected using a scientifically designed sample for participation in the survey.

To measure more accurately changes in the socio-economic characteristics of the population, the survey adopts an overlapping sample design such that about half of the households enumerated in a given quarter arc the same as those enumerated in the preceding quarter.

An official letter, in both Chinese and English, has been sent to the sampled households to explain the purpose of the survey and to seek their voluntary cooperation.

Officers of the department will contact the households concerned, to collect the required information.

When visiting households, they will carry with them a Government Identity Card and a certificate for conducting the survey. They will make such documents available for inspection by households to.confirm their identities.

To make it more convenient for both the households and the department, the sampled households could telephone the department to make prior appointment for visit by the interviewers.

The General Household Survey is conducted under Part III A of the Census and Statistics Ordinance (Chapter 316 of the Laws of Hong Kong) as notified in the General Notice No. 212 in the Gazette of January 19, 1990.

In accordance with the provisions of the Ordinance, data relating to individual persons or households collected will be kept confidential and will not be released to the public, any private organisations or other Government departments.

End/Friday, March 31, 1995

12

Money Statistics for February 1995 *****

According to statistics published today (Friday) by the Hong Kong Monetary Authority, most of the monetary aggregates recorded growth in February 1995 except cash held by the public and, hence, HK$M1, because of the post Lunar New Year effect. Foreign currency swap deposits continued to fall sharply reflecting the second stage of deregulation of the interest rate cap on UK dollar time deposits with effect from January 3, 1995.

Table 1 sets out summary figures for February 1995 and comparisons with earlier months.

Deposits

Total HK dollar deposits reversed the decline of 0.5% in January 1995 to rise by 2.1% in February 1995. All types of HK dollar deposits rose during the month. HK dollar demand deposits and savings deposits rose 4.8% and 0.6% respectively while the growth of HK dollar time deposits moderated from 2.4% in January to 2.2% in February.

The rise in HK dollar demand deposits and saving deposits which in aggregate amounted to HK$ 6.1 billion will have reflected the fall of HK$ 12.4 billion in cash held by the public, which largely reversed the rise of HK$ 16.2 billion in this item in January.

Foreign currency deposits also rebounded from a decline of 1.4% in January' to an increase of 3.7% in February. The rise was mainly in US dollar deposits which increased by 6.2% while other.foreign currency deposits grew 0.9%.

Following a marked decrease of 13.7% in January, swap deposits continued to decline by 11.4% in February. This is mostly due to the second stage of the removal of HKAB's interest rate cap, as HK dollar time deposits have become a preferred alternative to foreign currency swap deposits.

Loans and Advances

Total outstanding loans and advances approved by A Is expanded notably by 2.1% in February, up from 0.9% in January. Foreign currency loans grew particularly strongly during the month. The growth in HK dollar loans, however, moderated slightly from 0.8% in January to 0.7% in February.

13

Money Supply

Owing to the post Lunar New Year effect, currency held by the public dropped by 14.7% in February. Although part of the decrease was offset by the growth in demand deposits, HK$M1 registered a marked decrease of 4.4% during the month.

The growth of both HKSM2 and HKSM3 moderated to 0.8% this month from 0.9% and 1.1% in January respectively.

Note to Editors:

For further press enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority, at telephone 2878 8261.

14

TABLE 1 : MONETARY STATISTICS - FEBRUARY 1995

(HKSmn)

Feb 1995 Earlier months (% change to Feb 1995)

Jan 1995 Nov 1994 Feb 1994

Money Supply

Ml - HKS 169244 177.110 ( -4.4 ) 167,456 ( l.l ) 178,903 ( -5.4 )

Portion currency 18,529 16,095 ( 15.1 ) 16.479 ( 12.4 ) 21,081 ( -12.1 )

Total 187,773 193,205 ( -2.8 ) 183,935 ( 2.1 ) 199,984 ( -6.1 )

M2 - HKS@ 1,114,306 1,104,930 ( 0.8 ) 1,082,240 ( 3.0 ) 949318 ( 17.4 )

922245 887381 ( 3.9 ) 896,699 ( 2.8 ) 843,643 ( 9.3 )

Total 2,036351 1,992,511 ( 2.2 ) 1.978.939 ( 2.9 ) 1,793,161 ( 13.6 )

Ml 1,131,942 1,123,466 ( 0.8 ) 1,098,849 ( 3.0 ) 966,364 ( 17.1 )

983,249 949,447 ( 3.6 ) 958,954 ( 2.5 ) 884,847 ( 11.1 )

Total 2,115,191 2,072,912 ( 2.0 ) 2.057.803 ( 2.8 ) 1,851,211 ( 14.3 )

Notes and coins in circulation 80,566 96,966 ( -16.9 ) 73,496 ( 9.6 ) 76.798 ( 4.9 )

of which held by public 71,570 83,950 ( -14.7 ) 65282 ( 9.6 ) 68,695 ( 4.2 )

Total Deposits

Total Demand deposits Total Savings deposits Total Time deposits with licensed banks 116203 380,466 1,425,592 109255 ( 378246 ( 1.378.997 ( 6.4 ) 0.6 ) 3.4 ) 118,653 ( 397,720 ( 1.356,430 ( -2.1 ) -4.3 ) 5.1 ) 131389 ( 416,416 ( 1,151,972 ( -11.5 -8.6 23.8 ) ) )

Total Time deposits with restricted licence banks 36,049 37.685 ( -4.3 ) 35,986 ( 0.2 ) 25387 ( 40.9 )

Total Time deposits with deposit-taking companies HKS deposits® Demand deposits Saving deposits Time deposits® USS deposits* Other foreign currency deposits* All deposits 19388 1.031387 19.753 ( 1.010.833 ( 0.7 ) 2-1 ) 19.745 ( 1.006,275 ( 0.7 ) 2.5 ) 17320 ( 878,829 ( 11.6 17.4 ) )

97,674 263,133 93,159 ( 261309 ( 4.8 ) 0.6 ) 102.174 ( 271,921 ( -4.4 ) -3.2 ) 110.208 ( 280,194 ( -11.4 -6.1 ) )

670,781 656,164 ( 2.2 ) 632.180 ( 6.1 ) 488,427 ( 37.3 )

512,987 483263 ( 6.2 ) 497.327 ( 3.1 ) 422,417 ( 21.4 )

433,623 1,978,198 429,840 ( 1,923,936 ( 0.9 ) 2.8 ) 424.932 ( 1.928334 ( 2.0 ) 2.6 ) 441338 ( 1,743,083 ( -1.9 13.5 ) )

Foreign currency swap deposits 79,422 89.606 ( -11.4 ) 104.023 ( -23.6 ) 73,289 ( 8.4 )

Total Loans and advances

To finance H.K.'s visible trade 135,120 132,136 ( 2.3 ) 128349 ( 5.1 ) 104,068 ( 29.8 ) ) )

To finance merchandising trade not touching H.K. Other loans for use in H.K. 13,404 1286216 12,724 ( 1273.692 ( 5.3 ) 1.0) 12.967 ( 1.248356 ( 3.4 ) 3.0 ) 11,355 ( 1,119,004 ( 18.0 14.9

Other loans for use outside H.K. 1,883,984 1.829,136 ( 3.0 ) 1311,102 ( 4.0 ) 1,721,047 ( 9.5 ) ) )

Other loans where the place of use is not known 41.452 42,050 ( -1.4 ) 43,212 ( -4.1 ) 45,634 ( -9.2

1.134,172 1.126.473 ( 0.7 ) 1,114.614 ( 1.8 ) 991,314 ( 14.4

Loans in foreign currencies Total loans and advances 2,226.004 3360,176 2.163.264 ( 3.289.738 ( 2.9 ) 11 ) 2.129.752 ( 3.244.386 ( 4.5 ) 3.6 ) 2,009,794 ( 3,001,108 ( 10.8 12.0 ) )

• Adjusted to exclude foreign currency swap deposits. @ Adjusted to include foreign currency swap deposits.

Note : Data may not add up to total due to rounding.

End/Friday, March 31, 1995

15

Period lodging Proposal for Alteration of Valuation List in April and May 1995 * * * * ♦

The Rating and Valuation Department has published a notice in today's Gazette reminding the public that if they wish to make a proposal to alter the rateable value of their property for the financial year commencing April 1, 1995, they may do so during the months of April and May this year.

Forms for this purpose (Form R20A) may be obtained from the department at Hennessy Centre, 17th Floor, 500 Hennessy Road, Causeway Bay, Hong Kong, and also from district offices.

Proposals must be lodged with the department within the two months and they will not be accepted as valid if served before 1 April or after 31 May. They can be lodged by post or by hand, but transmission by facsimile is not acceptable.

A spokesman for the department pointed out that rateable values and rates percentage charges for the financial year 1995-96 will be the same as for 1994-95.

Nevertheless, some ratepayers will be required to pay more in rates, since the increase in rates in 1994-95 will have been limited by the Rates Relief Scheme.

This scheme limited any increase in rates payable in 1994-95 to 20% of the rates payable for the same property in the preceding year. However, increases in 1995-96 will again be confined to 20% of the amount payable in 1994-95.

The spokesman also said that where an alteration was made to the rateable value as a result of a proposal lodged in 1994, the revised figure will continue to apply for 1995-96 so no further proposal needs to be made.

He also emphasised that notwithstanding the lodging of a proposal, rates, as shown on the rates demand, must still be paid by the due date.

The department will carefully consider all proposals and notify the ratepayers of its decisions on them before September 1. Any changes in rates payable resulting from any of these decisions will take effect from April 1, 1995, and any overpayment will be refunded.

End/Friday, March 31. 1995

16

Hong Kong's throughput grows and grows ♦ ♦ * ♦ ♦

Hong Kong missed by a whisker logging its fourth one million TEU month in a row in October.

Official port throughput figures, just released, show total throughput for October was 999,217 twenty-foot-equivalent units (TEUs).

In July, Hong Kong became the world's first port to handle one million TEUs in a single month and it also surpassed the one million mark in August and September.

The October figures brought Hong Kong's throughput for the first 10 months of 1994 to 9.16 million TEUs. This was a rise of 20.6 per cent over the same period in 1993.

The Secretary of the Port Development Board, Mr Tony Clark, said: "The figures underline the urgent necessity of building additional container capacity in Hong Kong as soon as possible.

"There have been media reports that Hong Kong has enough spare handling capacity to skip Container Terminal 9 on Tsing Yi Island and go straight on to CT10 and 11 on Lantau.

"These throughput figures don't support such an argument. Besides our official total throughput figures, we already know that in the first two months of this year our eight container terminals showed a throughput rise of 19 per cent over the same period last year to total 1.15 million TEUs."

In the first 10 months of 1994, Hong Kong's eight container terminals handled just over six million TEUs, a rise of 26.3 per cent over the same period in 1993. Midstream operations accounted for 2.36 million, a rise of just 0.8 per cent. River trade rose by 58.2 per cent to 759,393 TEUs.

Mr Clark said: "To say that Hong Kong has enough spare capacity to handle these throughput increases just ignores the facts."

"We base our planning for new container terminals on a five-year trigger point mechanism which is established by the Port Development Board and accepted by the government and the terminal operators. According to this five-year trigger point, the first berth of CT9 was required in December last year. The second will be needed in May this year, the third in November and the final berth in May 1996.

17

"Even if the go ahead on CT9 were given today, the first berth could not be ready before June 1997 and the fourth berth by June 1998.

"Similarly, our trigger point mechanism shows we need the first berth of CT10 by September 1996 and the first berth of CT11 by December 1997. At the moment it is unlikely that the first berth of CT 10 will come on stream before April 1998 and the first berth of CT11 a year later."

"Of course the Board and government planners are doing their best to accelerate the development programme. But it is clear that wc will soon be facing a shortage of container facilities despite the improved efficiency of the existing terminals," Mr Clark added.

End/Friday, March 31.1995

Lawyers invite to join Legal Department

*****

The Legal Department is inviting lawyers to join the department as Crown Counsel.

In view of the increasing workload and activities in the department's various fronts, including the prosecution, law drafting and civil and criminal advisory, lawyers will find joining the department a good chance to demonstrate their professional ability in a varied and challenging job. a spokesman for the Legal Department said today (Friday).

Young Crown Counsel will also be able to develop their interest and expertise in a particular area as they will be posted to work in the department's various divisions.

"A newly-appointed counsel will normally be posted in the first instance to the Civil Division, the Law Drafting Division. Prosecutions Division or Legal Policy Division. He or she may be subsequently posted to other divisions for career development." the spokesman said.

He pointed out that as the Legal Department is fully committed to a programme of localisation, preference will be given to local applicants.

18

He said that a similar recruitment exercise was launched in April last year. It was found that an increasing number of local lawyers were interested in joining the Legal Department.

A total of 164 local applications, as against 99 in the 1993 recruitment exercise, were received during that exercise and more than 30 candidates were found suitable, he said.

On promotion prospects, the spokesman said that Crown Counsel were considered for promotion to the next rank of Senior Crown Counsel on the basis of ability, performance, legal experience, character and vacancies availability.

’’Local Crown Counsel who had insufficient experience to justify promotion to Senior Crown Counsel but otherwise show a special potential meriting accelerated advancement might be promoted under the Double Ladder Scheme, which was specially designed to groom local Crown Counsel with potential to Senior Crown Counsel," he said.

Turning to duties, he said a Crown Counsel deployed in the Attorney General’s Chambers would undertake criminal advocacy, civil litigation, legal advisory work, bilingual legislation drafting, commercial law and legal policy work.

The pay scale for a crown counsel is $33,130 to $54,985 per month, the entry pay depends on experience.

As regards entry requirements, candidates should be (A) admitted as solicitors in a recognised jurisdiction as stipulated under the Legal Officers Ordinance and Schedule 1 to Legal Practitioners Ordinance; or (B) barristers with two years' professional experience since call to the bar in a recognised jurisdiction as stipulated under the Legal Officers Ordinance and Schedule 1 to Legal Practitioners Ordinance.

Barristers with the right to practise but who do not possess two years' professional experience since call may also apply. If selected, they may enter at an appropriate point below the minimum of the Crown Counsel pay scale.

Candidates who will complete their training as a trainee solicitor or pupillage on or before 30 September this year may also apply. Their appointment, however, will be subject to their admission as a solicitor or satisfactory completion of pupillage.

19

Candidates should apply in writing with a completed application form (GF 340 (Rev. 5/90)), which is obtainable from district offices, Home Affairs Department or the Local Employment Services, Labour Department, and a full C.V. to the Appointments Unit, Legal Department, ninth floor. High Block, Queensway Government Offices, 66 Queensway, Hong Kong not later than April 22, 1995 .

Enquires could be made on 2867 2276.

End/Friday, March 31, 1995

Special campaign against problem factories *****

The Labour Department will launch a special territory-wide campaign from April 3 to 29 against factories with poor safety records.

The campaign aims at safeguarding the safety of factory workers and producing a deterrent effect on factory owners who make light of their employees’ safety.

’’Surprise inspections will be made on factories which have repeatedly flouted safety law or with high hazard ratings. Factory owners found to have infringed safety legislation will be prosecuted,” Deputy Chief f actory Inspector, Mr Kan Hon-sang said today (Friday).

He emphasised that efforts to pressurise factory owners to pay due attention to workers' safety would not be relaxed although fatal accidents in factories were decreasing.

"According to the Factories and Industrial Undertakings Ordinance, every proprietor of an industrial undertaking has the duty to ensure the safety and health of workers employed by providing a safe system of work, safetx training and instructions and suitable personal protective equipment. Any proprietor who fails to do so will be liable to prosecution," he added.

End/Friday, March 31, 1995

20

Hong Kong Shipping Register ranks 15th in the world *****

The latest addition to the Hong Kong Shipping Register, a 29,195-ton container vessel, M.V. Trade Maple, was named in a ceremony in Korea this (Friday) morning, bringing to 564 the number of vessels on the Register.

The Director of Marine, Mr Ian Dale, who is in Korea for the ceremony, said he was pleased to see another quality vessel joining the Hong Kong Register.

A review conducted earlier this (March) month showed that in terms of tonnage Hong Kong is the 15th largest shipping register in the world with a total gross tonnage of over 8.3 million.

"In less than five years since its inception on December 3, 1990, the Hong Kong Shipping Register has established itself as a quality register known to the shipping community worldwide," Mr Dale said.

"This ranking is another indication that the Marine Department's aim of maintaining a quality register and a responsible maritime administration is well supported by shipowners who will not trade off quality for a lowering of safety and environmental standards," Mr Dale said.

Built in Korea, the 185-metre vessel is owned by Hong Kong-based Well Dragon Shipping Limited and managed by Wah Tung Shipping Agency Company Limited. She is capable of holding 2,200 TEUs (twenty-feet equivalent units).

The ship will sail on her maiden voyage this evening to Tianjin, China and then calls at a number of other ports in Asia before going to Europe.

Eleven other vessels including a stable mate of Trade Maple are currently in the process of joining the I long Kong Shipping Register.

End/Friday. March 31. 1995

21

Elderly home operators urged to apply a licence *****

Operators of residential care homes for the elderly are urged to apply for a licence or a certificate of exemption from the Social Welfare Department’s (SWD) Licensing Office of Residential Care Homes for the Elderly from tomorrow (Saturday).

Making the appeal, a spokesman for the department said today (Friday) that the Residential Care Homes (Elderly Persons) Ordinance, with the exception of Section 6, would come into operation from tomorrow (April 1).

To further publicise the new legislation, the SWD has produced a poster advising operators to apply a licence or a certificate of exemption. It will be put up at various government poster sites throughout the territory.

’’With the implementation of the new legislation, residential care homes for the elderly will have to comply with the licensing requirements on location, space, design, structure, safety, fire precautions, staffing and quality of care to the residents before they are allowed to operate.

’’The Residential Care Homes (Elderly Persons) Ordinance aims to regulate homes established for the residential care of elderly persons who have attained the age of 60 so as to ensure that these homes provide services of a reasonable standard and that the well-being of the elderly residents is safeguarded.

"The SWD will regulate residential care homes either by a licence or a certificate of exemption. Licences may be issued to residential care homes which are able to comply with the requirements in accordance with the ordinance," the spokesman said.

Applications for either a licence or a certificate of exemption should be forwarded to the Licensing Office of Residential Care Homes for the Elderly located at Room 2354, 23rd Boor. Wu Chung House, 213 Queen’s Road East, Wan Chai.

Sfl'J

The spokesman explained it was the department’s policy that all residential care homes which came into existence and which intended to start operation on or after April 1 this year should be subject to regulation by the issue of a licence rather than the issue of a certificate of exemption.

"Although the SWD will, of course, consider all applications for a certificate of exemption, it is unlikely that a certificate of exemption will be issued to any residential care home which commences operation on or after April 1 this year unless there is something exceptional in the circumstances which warrant a departure from this policy.

22

’’The main reason for this approach is that regulation by the issue of a licence will better ensure high standards of residential care for elderly persons and better safeguard the interests of elderly residents than will regulation under a certificate of exemption,” he said.

On the certificates of exemption, the spokesman said they were to be granted to residential care homes already in operation before April 1 this year but which were unable to comply fully with the legislative requirements.

"The policy of allowing these homes to continue in operation is to safeguard the interests of the residents on the one hand and the interests of the operators in business terms on the other.

"However, the certificate of exemption will be revoked if there is danger to the residents or the well-being of the residents may be adversely affected.

"Section 6 of the ordinance, which is intended to come into operation on April 1, 1996, stipulates that any person, who on any occasion operates, keeps, manages or otherwise has control of a residential care home in respect of which neither a licence nor a certificate of exemption has been issued, commits an offence and is liable to a fine of $100,000 and an imprisonment of two years," the spokesman added.

End/Friday. March 31, 1995

Deputy Chairman of SFC appointed *****

The Governor has approved the appointment of Mr Michael Wu as the Deputy Chairman of the Securities and Futures Commission (SFC) in addition to his appointment as Executive Director (Intermediaries), the Secretary for Financial Services, Mr Michael Cartland, said today (Friday).

Mr Wu. 46. joined the SFC at its inception in May 1989. He was appointed Executive Director (Intermediaries) in May 1992 and has worked in the Supervision of Markets Division of the Commission.

Prior to joining the Commission, Mr Wu had worked as a Trade Officer and later as an Administrative Officer with the Government.

23

He was secretary to the Securities Review Committee which recommended the reforms which have been put into place in the last six years.

Mr Wu's appointment will take effect from May 1 and will last until the end of 1996. Mr Robert Gilmore, the incumbent Deputy Chairman, will leave the SFC on the expiry of his contract on April 30.

ft

End/Friday, March 31, 1995

Fee for enquiries on outstanding property tax revised

*****

The fee charged for answering written enquiries on any outstanding amounts of property tax will be revised as from tomorrow (Saturday).

A spokesman for the Inland Revenue Department said because of rising costs, the fee would go up from $260 to $290 per enquiry on each property.

End/Friday, March 31, 1995

Fight Crime Committee member appointed *****

The Government today (Friday) announced the appointment of a new member and the re-appointment of three existing members to the Fight Crime Committee.

Ms Sansan Ching Teh-chi is appointed for a period of two years from April 1. 1995. to March 31. 1997.

Miss Rosanna Wong and Mrs Alice Chong are re-appointed up to March 31. 1997 and Mrs Miriam Lau is re-appointed up to March 31.1996.

24

Following is the membership list of the Fight Crime Committee:

Chairman: Chief Secretary, Mrs Anson Chan

Deputy Chairman: Attorney General, Mr Jeremy Matthews

Members: Mrs Miriam Lau Mrs Alice Chong Miss Rosanna Wong Mr James To Mr Robert George Kotewall, QC Mr Hui Yung-chung Mr Edward Pong Ms Sansan Ching Secretary for Security, Mr Peter Lai Secretary for Home Affairs, Mr Michael Suen Secretary for Health and Welfare, Mrs Katherine Fok Secretary for Education and Manpower, Mr Michael Leung Commissioner of Police, Mr Eddie Hui Commissioner of Correctional Services, Mr Raymond Lai

Secretary: Principal Assistant Secretary for Security, Mr Jack Chan

End/Friday, March 31, 1995

Members appointed to the Board. Council of the Lord Wilson Heritage Trust

*****

The Governor has re-appointed the Rt I Ion the Baroness Dunn as the Chairman and the following as members of the Board of Trustees of the Lord Wilson Heritage Trust:

Mr Au Siu-kee. Alexander

Miss Chiu Kam-hing, Kathy

Mr Edward Ho Sing-tin

Mr Kwok Ping-sheung, Walter

Mr Li Tzar-kai, Richard

Mr Lung Ping-yee, David

Mr Alasdair G Morrison

Mr Tsui Tsin-tong

The Secretary for Home Affairs or his representative (ex officio)

The Secretary for Recreation and Culture or his representative (ex officio)

25

In addition, two new members - Mr Andrew Dixon and Mr Liu Lit-mo - have been appointed.

The Governor has also re-appointed Mr Edward Ho Sing- tin as Chairman and the following as members of the Council of the Lord Wilson Heritage Trust:

Mr Lung Ping-yee, David

Mrs Pamela Rumball Rogers

Dr Sinn Yuk-yee, Elizabeth :

Mr Yuen King-yuk, Jason

Director of Architectural Services or his representative

Director of Education or his representative

Commissioner for Recreation and Culture or his representative (ex officio)

All the appointments which are published in the Gazette today (Friday), are for two years, with effect from tomorrow (April 1).

The Lord Wilson Heritage Trust was established in December 1992, following the enactment of an Ordinance bearing the same name, to provide an opportunity for the community to express its appreciation of the contribution made to Hong Kong by Lord Wilson during his term as Governor of Hong Kong, and to join hands further to promote the preservation and conservation of Hong Kong's heritage.

The main function of the Board of Trustees is to manage the investment of the Trust capital and related financial matters so as to ensure that a steady income will be enerated to finance the Trust's activities. The Board also decides on broad policy matters and gives direction on how the objects of the Trust should be met.

The Council on the other hand is concerned with the execution of the Board's decisions, and the implementation of activities for promoting heritage preservation and conservation in Hong Kong.

End/Friday, March 31,1995

26

Fresh water service reservoirs for Ho Man Tin and Tai Po

*****

L J'UI ■’ ’ ’ ’■)>...• •<.. . • . . ■ J .

The Water Supplies Department is inviting tenders for the construction of two fresh water service reservoirs in Ho Man Tin and Tai Po, the Gazette notified today (Friday).

... • ?. . .. !• ’

The two reservoirs will have a capacity of 64,000 cubic metres and 14,600 cubic metres respectively.

V iJ ’.j« r'.' ■”

Works for the one in Tai Po will also include the laying of about 4.4 kilometres of fresh water mains. '

Upon completion of the works,, fresh, water supply to southeast Kowloon and eastern Tai Po will be improved.

The two projects are expected to start in July for completion in about 20 and 18 months respectively. . >■

Tender forms and further particulars can be obtained from the Water Supplies Department, 44th floor, Immigration Tower, 7 Gloucester Road, Wan Chai.

Tender offers will close at noon on April 28.

C ■ .. < . ", -<■ ., ,S’. . . ...

. ■. ■: > . ..' ■ • . : • End/Friday, March 31, 1995

, ...... . '. .J .’ 1 I. . / .,*4 .

Roadworks in Tai Po proposed .r' ,

♦ ♦ ♦ ♦ ♦

As part of the Rural Planning and Improvement Strategy Programme, the Government proposes constructing a van track at Lung A Pai, Tin Liu Ha and She Shan Tsuen to provide access to She Shan Tsuen from Lam Kam Road, Tai Po, it was gazetted today (Friday).

The works are scheduled to start towards the end of this year.

27

The plan and scheme showing the proposed works can be seen at the Central and Western District Office, Central Enquiry Service Centre, Ground floor. Harbour Building, 38 Pier Road, Central; Tai Po District Lands Office and the Tai Po District Office, both in Tai Po Government Offices Building, Ting Kok Road, Tai Po, New Territories.

Any person who wishes to object to the works may write to Secretary for Transport not later than May 30.

End/Friday, March 31, 1995

Tenders invite for Lo Wai roadworks ♦ ♦ ♦ ♦ ♦

The Territory Development Department's New Territories West Development Office is inviting tenders for roadworks in Lo Wai, Tsuen Wan.

The contract is part of the continuing development programme for the Tsuen Wan New Town, involves the construction of an access road and associated footpaths from Yi Pei Chun Road into Lo Wai Village, roadside car parks, local open spaces, drainage and sewerage systems.

The works are scheduled to begin in June for completion in 24 months.

A notice of the tender invitation was gazetted today (Friday).

Fender forms and further particulars may be obtained from Ho Tin and Associates Consulting Engineers Limited, Room 1704, Leighton Centre. 77 Leighton Road, Causeway Bay.

The tender closing date is noon on April 21.

End/Friday, March 31, 1995

28

Former Gate Lodge on Peak declared as historical building * * ♦ * *

The former Gate Lodge on Mt. Austin Road, the Peak, was gazetted as a historical building under the Antiquities and Monuments Ordinance today (Friday).

The Gate Lodge was originally used to accommodate the keeper of Mountain Lodge, the summer residence of the Governor on the Peak. It is currently managed by the Urban Services Department as a store for the adjoining public park.

The main facade of the Gate Lodge is symmetrical in design with the entrance door at the central position. There are matching pediments over the entrance door, windows and rear door.

It is still in very good condition since it was solidly built of brickwork. Much of the joinery of the period which was well assembled from good quality timber still survives in good condition.

The Mountain Lodge was built in 1902 and demolished in 1946. Its design was inspired by Scottish lodges and was described then as "the largest and most handsome building at the Peak".

End/Friday, March 31, 1995

Removal of Family Court to Supreme Court Building ♦ * * * ♦

The Family Court and its Registry will move to the Supreme Court Building and start operation there from Monday (3 April).

The Family Court and the Divorce Registry, currently situated in the Wan Chai Law Courts, will be closed tomorrow (April 1) to make way for the removal.

To better reflect the work of the Family Court which deals with both divorce and adoption cases, the Divorce Registry will also be renamed the Family Court Registry.

The family courts will be located on the 14th floor of the Supreme Court Building at 38 Queensway while the Family Court Registry will be on LG3.

29

"The move is to make room for the expansion of the District Court. It will also mean an improvement in the facilities for the Family Court," the Judiciary Administrator, Ms Alice Tai Yuen-ying said.

"The new premises for the family courts will provide a more comfortable environment with better illumination, waiting areas and consultation rooms," she said.

Noting that the number of applications for divorce jurisdictions filed had increased substantially from 6,767 in 1990 to 9,272 in 1994 - up 37 per cent in five years, she said the number of Family Court judges would be increased from three to four from April to cope with increasing caseload and to speed up the handling of cases.

End/Friday, March 31, 1995

All-day hotline on building matters *****

The Buildings Department will operate a 24-hour telephone and facsimile enquiry service to provide information on building matters to the public, starting tomorrow (April 1).

The public may call "The Buildings Department Enquiry Hotline" at 2868 9229 to obtain information in Cantonese or English on building safety, building defects, unauthorised building works, alteration works to existing buildings, demolition works and building works in progress.

The department aims to improve its existing enquiry service by expanding its operation into a round-the-clock service seven days a week. It has been operating a telephone enquiry (2848 2222) service which is switched to recording mode after normal office hours.

End/Friday. March 31. 1995

30

’’Dual access” period for the numbering change to end soon *****

All residential and business telephone and facsimile numbers in Hong Kong have already been changed from 7-digit to 8-digit by adding a prefix "2" in front of the previous numbers, a spokesman for the Office of the Telecommunications Authority (OFTA) reminded today (Friday).

"There has been a 'dual access' period allowing calls to be put through after dialling the new 8-digit numbers or the previous 7-digit numbers," the spokesman said.

"However, users should accustom themselves quickly to using the 8-digit numbers because the 'dual access' period for local calls will end at the end of May.

For international incoming calls, the "dual access" period will end at mid-night today (March 31).

"Up to the end of June, callers dialling the old 7- digit numbers will receive a recorded announcement asking them to dial the new 8-digit numbers.

"Therefore, it is necessary for all telephone users to let their overseas friends and relatives know their new telephone numbers," the spokesman said.

The spokesman added that the telephone numbers for the paging services would be changed on October I this year. The paging service operators will inform their customers of the details in the near future.

The common short-code numbers such as "999" for emergency services, "001" and "002" for international calling, "1081" and "1083" for directory enquiries, "109" for telephone line fault reporting and "1881 - 1887" for telebet services remain unchanged.

Any enquiries on the above numbering change can be directed to OFTA's hotline on tel 2961 6333.

End/Friday, March 31, 1995

31

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,762 0930 -152

Closing balance in the account 2.576 1000 -142

Change attributable to : 1100 -104

Money market activity -59 1200 -60

LAF today -127 1500 -59

1600 -59

LAF rate 4.25% bid/6.25% offer TWI 117.9 *+0.3* 31.3.95

Hong Kong Monetary Authority

EF bills EF notes/Hong Kong Government bonds

Terms Yield Term Issue Coupon Price Yield

1 week 5.32 14 months 2605 6.35 100.28 6.17

1 month 5.21 23 months 2702 7.50 101.69 6.64

3 months 5.42 28 months 3707 6.95 100.56 6.79

6 months 5.71 34 months 3801 8.00 102.76 7.02

12 months 6.07 60 months 5003 7.75 101.25 7.58

Total turnover of bills and bonds - $25,249 million

Closed March 31,1995

End/Friday, March 31, 1995


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