Daily Information Bulletin - 1990s - 1996 - JUN - ENG

 DAILY INFORMATION BULLETIN

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

Saturday, June 1,1996

Contents Eage No.

Chief Secretary addresses Boston business community..................... 1

Reminder on prohibition of licence transfer............................. 2

Hong Kong Monetary Authority money market operations.................... 3

Sunday, June 2,1996

Contents Page No,

ED staff awarded for good service....................................... 4

Scholarships for agriculture and fisheries studies...................... 5

1

Chief Secretary addresses Boston business community

* * * * *

Hong Kong’s economic fundamentals remain very strong, with 35 years of sustained economic growth, the Chief Secretary, Mrs Anson Chan, told the business community in Boston, Massachusetts, today (May 31, Massachusetts time).

"In the past decade we’ve averaged a growth of 6.5 per cent in real terms in our GDP and we forecast a five per cent real growth for the foreseeable future.

"We’re crucially aware of the need to keep Hong Kong competitive and to keep the cost of doing business in Hong Kong down," Mrs Chan said.

Addressing a luncheon meeting of bankers and business executives on the first day of her visit to Boston, the third city in her US tour, the Chief Secretary explained that, in addition to the welcome levelling off in property prices, the Government was also looking into other aspects of helping Hong Kong stay competitive.

"Currently, we are glad to know that the World Heritage Foundation rates Hong Kong the freest economy, and in terms of the world competitive table we are the third most competitive economy in the world. We fully intend to maintain that position and, hopefully, improve on it," Mrs Chan said.

Turning to the future, the Chief Secretary said one cloud on the economic horizon was the question of the most favoured nation status (MFN) extension to China.

"We fully agree with President Clinton that the best way to address a host of issues of concern - ranging from arms proliferation to human rights - is to have a constructive engagement with China and to be able to continue to assist in the economic growth of China," she said.

Mrs Chan went on to explain the heavy blow that would be dealt to Hong Kong if MFN were not settled.

The Chief Secretary began her day with a briefing to the business community at a meeting hosted by the office of the Mayor of Boston, Mr Thomas Menino.

It was followed by a call on Governor William Weld of the State of Massachusetts at the State Capital.

In the afternoon, Mrs Chan briefed the faculty at Tufts University and the Fletcher School of Law and Diplomacy. She ended the day with a dinner with members of the academic community of Boston and Cambridge.

End

- 2

Reminder on prohibition of licence transfer ♦ ♦ ♦ ♦ ♦

The Trade Department today (Saturday) reminded importers and exporters that licences issued by the department were not transferable and violation of this prohibition would lead to a fine of $500,000 and imprisonment for two years.

They were also reminded that any person who deliberately supplied false or misleading information on a licence application or declaration, was committing an offence under the Import and Export Ordinance.

This would include a person who declares himself to be the importer or exporter on the licence application with a view to transferring the licence issued to another person. If found guilty of such an offence, that person would also be liable to a $500,000 fine and two years’jail sentence.

Issuing the reminder, a department spokesman said: "A licence is issued direct to the importer or exporter and not to any other person; and it can only be used by the person declaring himself to be the importer or exporter on the licence application concerned.

"In their own interests, importers and exporters should apply for the required licences themselves and licence applications should be submitted to the Trade Department direct."

Moreover, the spokesman said, the import or export of textiles other than under and in accordance with a valid licence issued by the department is an offence under the Import and Export Ordinance, unless the importer/exporter is a registered textiles trader under the Textiles Trader Registration Scheme and has been granted exemption from licensing requirements in respect of certain textile articles under the Import and Export (General) Regulations.

Traders who are interested in participating in the Textiles Trader Registration Scheme are welcome to contact Mr K T Lee of the department's Non-restrained Textiles Branch on 2398 5476 for details.

End

3

Hong Kong Monetary Authority money market operations

*****

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

Opening balance in the account 2,198 09:30 -300

Closing balance in the account 1,778 10:00 -300

Change attributable to: 11:00 -300

Money market activity -300 11:30 -300

LAF today -120

LAF rate 4.00% bid/6.00% offer TW1 124.1 ♦-0.2* 1.6.96

End

4

ED staff awarded for good service ♦ ♦ ♦ ♦ ♦

The good service of 10 staff of the Education Department, five of them members of the Psychological Services (Professional Support) Section, paid off when they received the staff incentive awards.

In a presentation ceremony, Senior Assistant Director of Education, Mr Hsu Show-hoo, praised the award winners for their outstanding performance.

The group winners comprised three educational psychologists, Mrs Wong Chiu Man-chong, Mrs Ng Shing Pui-ying and Mrs Lucinda Wong Leung Sai-man, and two educational counsellors, Miss Judy Wong Chi-tack and Mrs Chan Hui Siu-king.

They were recommended for their services rendered to the students and teachers at THKCWC Fung Yiu King Memorial Secondary School after the Pat Sin Leng disaster.

Mrs Wong Chiu Man-chong said: "We worked out a preliminary plan on the day of the tragedy and visited the school the next day. We assess the need of the school and conduct debriefing sessions for all teachers to help them in handling their grief and emotions.

"Bereavement counselling and on-site supportive services were also rendered."

Miss Wong Chi-tack said: "Now we still maintain a close working relationship with the school and visits are paid to pick up cases with delayed reaction."

Their commitment and positive attitude towards work were highly commended by their section head.

They were awarded a certificate of merit showing their names and photo-stands with the logo of the department.

For the other five awardees, they were each presented with a meritorious certificate and a watch embossing with the department’s logo.

They were Education Officer of Belilios Public School, Mr Lau Kwok-kee; Assistant Education Officer of Helen Liang Memorial Secondary School (Sha Tin), Mr Leung Kim-hung; Clerical Officer I of NTHYK Southern District Secondary School, Mrs Tsang Leung Shuet-fun; Clerical Officer I of Central and Western District Education Office, Mr So Siu-wing; and Workman II of Advisory Inspectorate Division's General Office, Mr Lee Tat-cheong.

5

Apart from running the Audio-visual Department of the school efficiently. Mr Lau was awarded for excellent work in setting up the Computer Department, School Administration Management System and Student Information Management System.

He also contributed a lot in a large-scale project of installing air-conditioning in the school hall and setting up an E-mail system with a partner school in the United Kingdom.

Mr Leung was commended for his dedication to education and his high selfmotivation in providing an improved working environment and devising work procedures for students and colleagues.

Mrs Tsang was nominated for her efficient work, quality customer service, dedication to work and willingness to offer help.

Mr So was efficient, resourceful and helpful. He contributed to the improvement of the office environment. He also take the initiative to learn Putonghua and computer in order to provide better service and assist office computerisation.

Mr Lee was conscientious, meticulous and industrious. He was also praised for his efforts to strengthen the security of the office.

End

Scholarships for agriculture and fisheries studies

Eligible students are invited to apply for financial assistance under the Agricultural Products Scholarship Fund and the Marine Fish Scholarship Fund.

The assistance can be in the form of scholarship, grants and interest-free loans from the two funds which are administered by the Agriculture and Fisheries Department (AFD).

A spokesman for the Agricultural Product and Marine Fish Scholarship Funds Advisory Committee said application forms were now available from AFD Headquarters on the 12th floor of Canton Road Government Offices, 393 Canton Road, and from various District Agricultural and Fisheries Liaison Offices.

6

Applications for tertiary education subsidies in the new academic year will close on July 20 while those for secondary school students will close on August 15.

The spokesman said the funds were set up in 1978 to help people wishing to serve the local agriculture and fisheries industries or related trades on completion of their studies, and also those employed in the industries wishing to pursue further training.

"Another aim of the funds is to provide financial assistance to children or dependants of farming and fishing families to complete their tertiary and secondary schooling," he said.

"Applicants in tertiary education should be Hong Kong residents under 30 years of age while secondary school applicants should be students in Form four to seven.

"The awards will be tenable at any university in Hong Kong, any acceptable overseas institution and any secondary school in the territory."

Approved courses for tertiary education include those on agriculture, veterinary science, marine science and biology or any applied science directly relevant to the local agriculture or fisheries and related trades.

Enquiries about the funds and application procedures can be made on 2733 2244 during office hours.

End

DAILY INFORMATION BULLETIN

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

Monday, June 3,1996

Contents

Governor’s statement on C H Tung’s resignation from ExCo............... 1

Governor’s letter to C H Tung.......................................... 1

Governor’s question-and-answer session in LegCo on Feb 1............... 2

ExCo’s statement on C H Tung's resignation............................. 3

More transport infrastructure projects in the pipeline................. 4

CS officiates at Dragon Boat Festival in Boston........................ 5

DGT to visit Geneva, Brussels and Washington........................... 6

Students advised to check school registration.......................... 7

Tender for the 8th issue of 5-year exchange fund notes................. 9

More staff to promote occupational safety and health................... 10

Water storage figure................................................... 11

Hong Kong Monetary Authority money market operations................... 12

1

Governor's statement on C H Tung's resignation from ExCo ♦ * * * ♦

The Governor, the Rt Hon Christopher Patten, issued the following press statement this (Monday) afternoon in response to Mr C H Tung's decision to resign from the Executive Council:

"As I told the Legislative Council in February, I discussed Mr C H Tung's position on the Executive Council with him some months ago when he was appointed to the Preparatory Committee. I told him then that I would be delighted for him to stay on ExCo and that I had always greatly valued his advice.

"But he and I recognised that, at some point, he might find that the tensions between his two roles became too difficult to reconcile. I made clear that this would be very much a matter for him to decide, if and when that time arrived.

"Clearly that point has now come. Mr Tung has asked to step down from ExCo. I have accepted his resignation with regret but also with considerable gratitude for the valuable role he has played on the Council, and for the community, over the past three and a half years."

End

Governor's letter to C H Tung

*****

Following is the letter from the Governor, the Rt Hon Christopher Patten, to Mr C H Tung, today (Monday):

Thank you for your letter of today's date.

When we talked earlier this year, I said that I hoped that you would stay on the Executive Council for as long as you felt able to do so. As you know, I have always valued and respected your advice even, indeed particularly, when our views differed, since you always gave that advice honestly, impartially and in the interests of Hong Kong. But we both recognised that a point might come when you felt that the tensions between your appointment as Vice-Chairman of the Preparatory Committee and your place on ExCo became too great.

3

- 2 -

I respect your judgement that you feel that that time has now come, and I therefore accept your resignation from the Executive Council. But I do so with considerable regret, bearing in mind the valuable contributions you have made to the Council's policy discussions over the last few years and the clear and articulate way in which you have represented the views of an important section of the community during that period.

Your ExCo colleagues and I will miss your presence this coming Tuesday morning, and those following. We wish you well.

End

Governor’s question-and-answer session in LegCo on Feb 1

*****

Following is an extract from the Governor’s question-and-answer session in the Legislative Council on February 1, 1996:

Governor: ... I thought that I would allow more time for questions by not making a statement today.

Mr Szeto Wah (in Chinese): Mr Governor, the Executive Council has to observe collective responsibility and so does the Preparatory Committee. If we have a person who is both an Executive Councillor and also a member of the Preparatory Committee, when there are different decisions between the Executive Council and the Preparatory Committee, where should his responsibility lie? And should it be the first one that should take precedence or should it be the last one that should take precedence over the previous one? Thank you.

Governor: I congratulate the honourable gentleman on such a clever, thoughtful, intellectually provoking, constitutional question.

It’s not for me to comment on the working practices of the Preparatory Committee. Save to say that perhaps it’s easier to have collective responsibility and confidentiality in a body as small as an Executive Council or a cabinet and perhaps a little more difficult, and that’s not meant as a criticism, it’s a statement of my views on human nature, a little more difficult when you’ve got 150 people. But I wish those who are organising the work of the Preparatory Committee the best of luck in that respect.

3

As for the dilemma which the honourable member mentioned, I would very much hope that were there such a dilemma in practice, the member of the Executive Council and Preparatory Committee would use his own judgement and apply his own integrity to decide what the honourable course of action was. I think it's difficult to answer the question in the abstract. I would only add that knowing who the honourable member has in mind, I have no doubt at all that the honourable gentleman concerned would, in that case, as in others, behave with complete integrity.

Mr Szeto Wah (in Chinese): The ExCo and also the Preparatory Committee have rules of confidentiality, so this person who has membership in both, how should we advise him? Should he try and keep things from both parties or should he try and please both? How can he really play the role of a bridge effectively?

Governor: I think he should apply his integrity and common sense in this particular instance as he has in others. Speaking for myself I think it's wholly welcome that we have a distinguished businessman playing this bridging role, if it's possible. It may be that in due course the tensions become very difficult, in which case I'm sure that the honourable member concerned would know how to resolve them, but for the time being I think the arrangements work perfectly satisfactorily. I don't hide from the Legislative Council that the member concerned raised these questions with me, raised his own concern about them and I urged him to remain a member of my Executive Council because I'm sure he'll be able to play a valuable role. But if it proves too difficult, both for him and for the two institutions of which he is a member then I'm sure he'll know what to do.

End

ExCo's statement on C H Tung's resignation ♦ ♦ ♦ * ♦

In response to press enquires, the Convenor of ExCo, the Hon Rosanna Wong, made the following statement today (Monday):

"I deeply regret the resignation of my colleague in the Executive Council, Mr Tung Chee-hwa. I respect Mr Tung's decision which I am sure he has carefully and thoroughly considered.

4

"During the past three and a half years at ExCo, Mr Tung has made a wholehearted contribution to Hong Kong. My colleagues and I at ExCo will miss him greatly.

However, we firmly believe that whatever he does, Mr Tung will continue to work for Hong Kong in the future."

End

More transport infrastructure projects in the pipeline *****

The Secretary for Transport, Mr Haider Barma, said today (Monday) that Hong Kong had a lot to offer on the transport front as in other areas of business and Government activity. ' • < •

Speaking at the opening of the Conference on Tunnel Management, Operation and Maintenance at the Hong Kong Convention Centre, Mr Barma said the Government believed involving the private sector would be more flexible and cost-effective.

This would free up government resources for other projects, and competition would ensure that the Government got the best value, Mr Barma said.

He said private sector partnership had been achieved through BOT (build-operate-transfer) projects, and response from them in undertaking major infrastructural projects had been extremely positive.

"We invite the private sector to build and operate new highways or tunnels through franchises which normally last for a period of 30 years, with the project then being transferred to government ownership,” he said.

"Example of this are Eastern Harbour Crossing and Tate’s Cairn Tunnel which together cost $5 billion.

"Under construction now is the Western Harbour Crossing, estimated to cost $7 billion and scheduled for completion by March 1997.

"And also under construction is Route 3 country park section which will provide a new superhighway from the border to the container port. The cost of this project is also estimated to be in the order of $7 billion."

5

Mr Barma said to complement road network, new railway systems would play a very important role in future infrastructural plans.

He cited the Western Corridor project, the Tseung Kwan O MTR system and the Ma On Shan and Tai Wai rail link as examples.

"These BOT and railway projects offer plenty of scope for private sector involvement and they offer abundant opportunity for your expertise in tunnel management, operation and maintenance," he said.

As a specific example, said Mr Barma, the Government had decided to contract out the management, operation and maintenance of the Tsing Ma Control Area.

It will cover some 16.5 kilometre of roads, bridges and viaducts and a tunnel of the expressways leading to the new airport.

"We are now awaiting bids from four pre-qualified tenderers. These should be in shortly," he said.

"In parallel, we are also drafting the necessary legislation which will need to be enacted in time to enable the contract to be signed by the end of this year.

"The whole operation should be up and running by the middle of 1997, providing unified traffic control over a vital and strategic link," Mr Barma added.

End

CS officiates at Dragon Boat Festival in Boston *****

The Chief Secretary. Mrs Anson Chan, today (Sunday, June 2, Massachusetts time) officiated at the opening ceremony of the Hong Kong Dragon Boat Festival in Boston.

With spectators lining the banks of the picturesque Charles River by Harvard University, some 30 teams from the Greater Boston area, in authentic 39-foot Hong Kong dragon boats, took part in the race during a perfect sunny Sunday afternoon.

The winning team will compete in the national championship races in New York in August and the champion will be flown to Hong Kong to participate in the Hong Kong Dragon Boat Festival International Races in June, 1997.

6

Speaking before dotting the eyes of the dragon, Mrs Chan said the festival afforded the opportunity for Hong Kong to contribute, albeit modestly, to the cultural and recreational calendar of Boston.

She said Hong Kong had enjoyed a very close partnership with the United States for many years, a partnership founded solidly on a history of trade and commerce and shared values.

"In addition to the extensive economic and trade relationship Hong Kong has with the United States, I hope that by promoting this colourful and exciting festival, we have brought a lighter side of Hong Kong life to the community here,” the Chief Secretary said.

Exhibits at the race site included displays of children's art flown in from Hong Kong as well as photographic displays about life in the territory.

The Asian-American performances during the day comprised episodes from the Monkey King Opera, taiko drummers, traditional Chinese dancers, kung fu and other martial arts performers, and arts and crafts activities.

End

DGT to visit Geneva, Brussels and Washington ♦ ♦ * * ♦

The Director-General of Trade, Mr Tony Miller, will depart this (Monday) evening for a duty visit to Geneva, Brussels and Washington where he will attend a series of trade meetings.

The purpose of the discussions is to strengthen bilateral understanding and furthering discussion on multilateral trade issues of mutual concern in advance of the World Trade Organisation (WTO) Singapore Ministerial Conference (SMC) in December.

In Geneva, Mr Miller will participate in a high-level meeting of the Negotiating Group on Maritime Transport Services to be held on June 4 and 5 under the auspices of the WTO General Agreement on Trade in Services.

The talks are one of the four extended tracks of service negotiations required by the Uruguay Round to achieve a higher level of liberalisation.

7

The other three sectors are Basic Telecommunications, Financial Services and Movement of Natural Persons. The deadline for the maritime transport negotiations is June 30.

In addition, Mr Miller will attend an informal meeting of the WTO General Council and will call on senior WTO officials, including its Director-General, Mr Renato Ruggiero.

Mr Miller's itinerary then takes him to Brussels where he will have a series of meetings with senior trade officials of the European Union on both bilateral and multilateral issues before proceeding to Washington.

While in Washington, Mr Miller will call on senior officials of the Office of the United States Trade Representative and the United States Customs for an exchange of views on various US/Hong Kong trade issues and again on the SMC agenda.

He will then join the Chief Secretary, Mrs Anson Chan, who will be in Washington between June 12 and 15, to further lobby senior officials of the US Administration and Congress for the unconditional renewal of China's most favoured nation trading status.

Mr Miller will return to Hong Kong on June 16.

End

Students advised to check school registration *****

The Education Department advises students to check whether a local school at which they intend to enrol this summer is registered with the department under the Education Ordinance.

"Under the Education Ordinance, an institution, organisation or establishment which provided education to eight or more students at any one time or 20 or more students during any one day is required to register with the department," Senior Education Officer, Mr Tse Tak-on said.

"To enable students or their parents to easily verify a school's credentials, schools are required to state their registration or provisional registration number on any advertisement."

8

Students should be particularly cautious with institutions which operate a chain of centres under the same name in different districts but with only some of the centres or courses properly registered.

They are also advised to check whether the place they register for admission is the location where the course operates.

"A school that operates without registration may jeopardise the studies of its students,” Mr Tse said, adding that there was no control as to the safety of the premises, sanitary conditions and teacher qualifications.

’’Furthermore, members of the public are reminded that only bona fide Secondary 5 students of registered schools approved to participate in the Hong Kong Certificate of Education Examination may sit for the examination as school candidates."

Mr Tse said schools were required to display in a conspicuous place in each of the registered premises the registration certificate showing the name of school in English and Chinese, address and registration number and a fees certificate in respect of the class, tuition fee per instalment and number of instalments.

By looking at the registration and fees certificates, students who wish to enrol at an institution or on a course should know whether or not requirements set out in the Education Ordinance are complied with.

Students or parents are welcome to check with the department’s district education offices or Registration Section to find out if a school is registered with the department.

Mr Tse said the department conducted 97 inspections on educational establishments between September last year and May this year to ensure that they did not contravene the provisions of the ordinance.

During the same period, the department had issued 10 warnings to some of these schools, requiring them to comply with the law, Mr Tse said.

Irregularities spotted by the department included collection of unapproved fees, teachers without registration certificates or teaching permits and excess enrolment.

In the 1994-95 school year, the department had conducted 152 inspections and issued 21 warnings to unregistered schools

End

9

Tender for the 8th issue of 5-year exchange fund notes ♦ ♦ ♦ ♦ ♦

The Hong Kong Monetary Authority (HKMA) today (Monday) announces the tender for the eighth issue of 5-year exchange fund notes will be held on June 10 for settlement on June 11.

Similar to the previous issue, an amount of $500 million 5-year notes will be on offer.

In addition to that, another $100 million will be held as reserve by HKMA for supply to market makers in the secondary market. The notes will mature on June 11, 2001, and will carry interest at the rate of 7.23 per cent per annum payable semiannually 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 HKMA at 30th floor, 3 Garden Road, Hong Kong, Tel 2878 8150. Each tender must be for an amount of $50,000 or integral multiples thereof.

Following is the tender information for the eighth issue of 5-year exchange fund notes:

Issue number : 5106

Tender date and time : Monday June 10, 1996, 9.30 am to 10.30 am

Issue and settlement date : Tuesday June 11, 1996

Amount on offer : $500 million plus an additional $100 million as reserve stock for the Monetary Authority

Maturity : Five years

Maturity date : June 11, 2001

Interest rate : 7.23% per annum payable semi-annually in arrears

Interest payment dates : Dec 11, 1996, Jun 11, 1997, Dec 11, 1997, Jun 11, 1998, Dec 11, 1998, Jun 11, 1999, Dec 13, 1999, Jun 12, 2000. Dec 11,2000, Jun 11,2001

10

Tender amount

Other details

: Each tender must be for an amount of $50,000 or integral multiples thereof. Members of the public who wish to tender for the notes may approach market makers or recognised dealers on the published list

: Please see information memorandum published or approach market makers or recognised dealers

End

More staff to promote occupational safety and health

*****

Promotion letters were recently presented to two superintendents of factory inspectors (SFI), elevating them to Deputy Chief Factory Inspector (DCFI) with effect from May 22.

The letters were handed to Mr Wong Wai-chi and Mr Ma Shi-hang by the Deputy Commissioner for Labour in charge of occupational safety and health, Mr Lee Kai-fat.

Mr Lee also presented letters to four SFIs who have been appointed acting DCFI with a view to substantive promotion.

Commenting on the advancement, Mr Lee said promotion prospects in the Factory Inspectorate grade had been greatly enhanced following the creation of additional professional posts this financial year.

The creation of the new directorate and non-directorate posts has resulted in the setting up of a new Occupational Safety and Health Branch headed by Mr Lee and its mission is to ensure that risks to people's health and safety from work activities are properly controlled.

Mr Lee is assisted by an Assistant Commissioner for Labour who looks after occupational safety and a Medical Consultant responsible for the provision of occupational health services.

On the occupational safety side, the former FID has been restructured into Operations, Support Services, Planning and Training and Legal Services divisions.

11

These divisions, together with the Boilers and Pressure Vessels Division, will provide enforcement actions and field services to different work places, technical support and safety promotion activities, planning and training functions as well as legal advice in prosecution cases, civil claims and other legal matters.

The Operations Division and the Support Services Division are each headed by a Chief Factory Inspector.

The department's former Occupational Health Division has been split into Occupational Medicine, Occupational Hygiene (Operation) and Occupational Hygiene (Development) Divisions.

These three divisions are responsible for investigating and providing clinical services in respect of occupational diseases, assisting in employees' compensation cases, providing health educational services to employees, conducting research on potential health hazards in various work activities, defining hygiene standards, compiling and disseminating research findings and hygiene standards.

"Staff members of the new Occupational Safety and Health Branch are working closely together in implementing various recommendations contained in the Consultation Paper on the Review of Industrial Safety in Hong Kong which had been endorsed by the Executive Council late last year," Mr Lee said.

"We have made great progress, especially in the preparations of a number of proposed new occupational safety and health legislation which should improve Hong Kong's occupational safety and health situation if endorsed by the Legislative Council."

End

Water storage figure

*****

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 85.4 per cent of capacity or 500.257 million cubic metres.

This time last year the reservoirs contained 368.664 million cubic metres of water, representing 62.9 per cent of capacity.

End

12

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,778 0930 +182

Closing balance in the account 2,730 1000 +182

Change attributable to : 1100 +182

Money market activity + 182 1200 +182

LAF today +770 1500 +182

1600 + 182

LAF rate 4.00% bid/6.00% offer TWI 124.0 *-0.1 * 3.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 4.96 2 years 2805 6.30 100.16 6.31

1 month 5.03 3 years 3904 6.30 99.14 6.74

3 months 5.11 5 years 5103 6.75 97.90 7.41

6 months 5.23 7 years 7305 7.60 99.50 7.84

12 months 5.61 5 years M502 7.30 99.35 7.61

Total turnover of EF bills and notes - $14,298 million

Closed June 3, 1996

End

DAILY INFORMATION BULLETIN

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

Tuesday, June 4,1996

Contents Page No.

Transcript of the Governor's media session................................ 1

Chief Secretary launches HK-USA'96 promotion.............................. 3

HK on solid ground to prepare for the 21 st Century....................... 5

Civil servants offered 7.67% to 7.68% pay rise............................ 7

New deputy HKMA chief appointed........................................... 8

New franchise for New Lantao Bus approved................................. 9

Funding for seven languaging projects awarded............................. 9

Unlicensed clubhouse operator fined...................................... 10

Over 16,500 sale and purchase agreements lodged in May............... 11

Hong Kong Monetary Authority tender results.............................. 12

Hong Kong Monetary Authority money market operations..................... 13

1

Transcript of the Governor's media session * ♦ * ♦ ♦

Following is the transcript of the remarks made to the media by the Governor, the Rt Hon Christopher Patten, after attending the Executive Council meeting today (Tuesday):

Governor: Perhaps I could say a word or two about Mr C H Tung. C H Tung has been a very valued member of the Executive Council for over three and a half years. I remember my conversations with him in the autumn of 1992 trying to persuade him to join the Executive Council as a very important representative of a point of view about the development of Hong Kong and the development of our institutions. I was pleased then that he did so and I've been delighted with the contribution that he's made as a colleague over three and a half years.

When C H became a member of the Preparatory Committee at the turn of the year, he discussed with me and with the Chief Secretary Anson Chan and with his fellow members of the Executive Council whether there might not be a conflict of interest between his position on the Preparatory Committee and his position on the Executive Council. We urged him very strongly to stay. We thought that there shouldn't be a conflict of interest, but I know the question has worried him and it's of course been raised with me by other people. 1 answered questions on the subject on the first of February from Szeto Wah in the Legislative Council and the views I set out then 1 think that I would stand by and bear the closest scrutiny today.

Mr C H Tung came and saw me after the Zhuhai Preparatory Committee meeting and we discussed that conflict of interest which he felt and the correspondence exchange between us yesterday is the outcome. We're obviously.sorry to see his departure from the Executive Council, but we understand his feelings and of course respect the integrity of his decision. I'm sure that we'll be able to continue to turn to him for advice from time to time and I'm sure that he will be a very good bridge between us and the Preparatory Committee. So we regret his departure, but are very grateful for all the work that he’s done for Hong Kong as a member of the Executive Council.

Question: Is there any decision on his successor?

Governor: No.

Question: You said you understand that there is a conflict of interest between the ExCo and the Preparatory Committee. There may well be other people perhaps in the Legislative Council or even in the civil service or anyone. Do you feel that, you know, they can't be serving two masters at the same time. What do you suggest they should do?

2

Governor: I think his position was not quite the same as those which you referred to. I think for example he found it difficult - though you'll have to ask him about this - but I think he probably found it rather difficult to find himself in a position where he was discussing the outcome of meetings of the Preparatory Committee at Executive Council meetings and he was after all a vice-chairman of the Preparatory Committee. So I think his position was a particularly sensitive one. I would have hoped that he could have continued to serve on the Executive Council and worked a way out for these problems. But he's a man of great integrity and great intelligence and I respect his decision.

Question: Do you feel given his importance to your ... do you feel a sense of betrayal when he decided to leave ExCo?

Governor: Certainly not.

Question: (on replacement)

Governor: I don't know whether I want a replacement at all. There is no prescribed size to the Executive Council. It's been larger, it's been smaller. But we'll work out what we think is best for the relationship between the Administration and the Legislative Council and for the good government of Hong Kong in due course.

Question: Do you think his resignation is related to that he might be the coming Chief Executive?

Governor: I've seen what he says in his own statement and I take him at his word.

Question: It's slightly a follow-up from that question. Can you describe what is he like to work with? He is very quiet in public. Is he somebody you regard to have leadership quality?

Governor: Well, I've experienced in life that the wisest people aren't always those who make the most noise. He's a very good businessman. He has a marvellous network of international connections. He is very well known in the United States where he's, of course, led our community which attempts to promote trade with the United States. But he's known elsewhere as well. He's known well in Britain. He’s known well in China and of course, his experience of working on the Executive Council has now given him a lot of knowledge about how government and the community works. He's always intelligent, he’s always read his papers and contributes in a comradely fashion.

Question: You think he is an ideal candidate for the Chief Executive ...?

Governor: I am often tempted or rather asked to comment on the Chief Executive (Designate) and who it should be and I always quite properly decline to do so.

3

Question: (on successor)

Governor: I haven’t taken a decision either not to or to appoint one.

Question: (on whether there are any further resignations)

Governor: No.

Question: Have you discussed...?

Governor: No.

Question: Do you think there is any pressure inside ExCo to force him to resign?

Governor: No. We all regard him as a very good colleague. Okay? Thanks very much indeed.

Question: What about the Civil Service pay rise?

Governor: I thought you were going to tell me. An announcement will be made later on today I think.

Question: Is it below or higher than the ... ?

Governor: It follows the normal criteria that we’ve applied. That is we try to ensure that people working in the civil service are treated in the same way that the private sector is treating its own employees.

End

Chief Secretary launches HK-USA’96 promotion ♦ ♦ ♦ ♦ *

The Chief Secretary, Mrs Anson Chan, completed her programme in Boston on Monday (Boston time) and moved on to New York to launch the HK-USA'96 promotion.

Before leaving Boston, she talked to the Boston Globe editorial board. She then had a roundtable discussion at the Fairbanks Centre of East Asia Studies and Kennedy School of Government at Harvard University in Cambridge, Massachusetts.

4

Following a luncheon with the President of Massachusetts Institute of Technology (MIT), Dr Charles Vest, and faculty members, Mrs Chan addressed a conference hosted by MIT's Sloan School of Management, moderated by author and economist Lester Thurow and attended by 300 academics and business executives at the new Jack C Tang Center for Management Education.

On her arrival in New York, the Chief Secretary launched the Hong Kong-USA'96 promotion and appeared as a guest of honour at a gala reception for 500 guests from the New York business and professional communities.

The reception, held in the American Wing of the prestigious Metropolitan Museum of Art, was also attended by the Hong Kong delegates currently in New York for the promotion.

The guests then attended a concert by the Hong Kong Chinese Orchestra playing a selection of Chinese traditional and folk pieces based on theatrical work and poetry in the auditorium at the Metropolitan Museum.

The 40-strong orchestra, led by music director and conductor, Mr Henry Shek, is touring the US as part of the promotional activities. The main concert will take place at the Lincoln Center on Wednesday (June 5, New York time).

Mrs Chan's programme in New York continues on Tuesday (New York time), with an early morning appearance on CNN, followed by briefings to the media, the Asia Society, the Council on Foreign Relations, and the National Committee on US-China Relations. She will call on the Mayor of New York later in the day.

Another major promotional activity later in the week is a day-long business conference.

The Hong Kong-USA'96 is presented by the Hong Kong Government, the Hong Kong Trade Development Council and the Hong Kong Tourist Association.

End

5

HK on solid ground to prepare for the 21st Century ♦ ♦ ♦ ♦ ♦

The Chief Secretary, Mrs Anson Chan, said Hong Kong could be as successful during the first half of 21st century, as it had been during the second half of 20th century, notwithstanding any difficulties that might cross its path.

Speaking at the Sloan School of Management, Massachusetts Institute of Technology (MIT), in Boston on Monday (Boston time), Mrs Chan said Hong Kong people had every intention to build on the promises of the Joint Declaration to make the territory’s future as spectacularly successful as its past.

"We in Hong Kong have been preparing ourselves, preparing our institutions, not simply for China’s resumption of sovereignty on July 1, next year, but for the 21st Century and beyond," Mrs Chan said.

She said her faith in Hong Kong was based on the sound foundations of its well-established institutions.

"The rule of law has been central to Hong Kong’s economic and social success. To put it simply, Hong Kong has no higher priority than the preservation of the rule of law," said Mrs Chan.

"After 1997, Hong Kong will continue to live under its own discrete set of Statute Law and the Common Law. This is, I believe, the very essence of 'one country, two systems' and Hong Kong has prepared itself well for the legal aspects of the transition."

On the economy, Mrs Chan said Hong Kong itself had now become a technology and information-based service economy selling its professional services and expertise to China, to the region and to the world.

"Over 2,000 multi-national business have established their regional headquarters or offices in Hong Kong. The number continues to grow as Hong Kong strengthens its position as the region's leading services centre," she said.

"Much of this economic transformation has been led by businessmen, not bureaucrats.

"It is the businessmen's entrepreneurial skills and flair, their willingness to take risks coupled with the resilience and hard work of our labour force that have brought Hong Kong the prosperity which has in turn enabled our people to raise their standard of living."

6

She noted that a major study entitled "Made by Hong Kong" is being carried out by MIT.

"This study, which is jointly sponsored by public and private funds, will identify promising new industries for Hong Kong and will help our manufacturing sector find its way for the 21 st century," she said.

Like Hong Kong's economy and its legal system, she said, Hong Kong's civil service was also ready for the transition.

"The process of localisation, of putting Hong Kong men and women in the upper echelon of the executive arm of the Government and the police force is largely complete.

"In the ebbs and flows of managing the political transition, the Hong Kong civil service has taken in its stride many difficult challenges.

"During my visits to Beijing, Chinese leaders have assured me that they appreciate and recognise the value of the Hong Kong civil service as a force for stability.

"They have confirmed the political neutrality of the civil service. They have asked all serving officials to remain in post to serve the people of Hong Kong." said Mrs Chan.

She said she believed China wanted Hong Kong to succeed as much for national pride as for self-interest.

"America and the rest of the world want Hong Kong to succeed because of their increasing stakes in Hong Kong and because we make a significant contribution to the generation of wealth and hence to stability in the region.

"This should be a win-win situation but it will need skilful handling, perseverance, trust and goodwill.

"Above all, we, the people of Hong Kong, need to remain true to ourselves and to the institutions and values which have brought health and vitality to our economy and our community," said Mrs Chan.

End

7

Civil servants offered 7.67% to 7.68% pay rise ♦ ♦ ♦ ♦ ♦

On the advice of the Govemor-in-Council and subject to the approval of the Finance Committee, the administration has decided on a pay adjustment offer of 7.68 per cent for the directorate and the upper salary band of the civil service (i.e. monthly salary at $38,211 and above) and 7.67 per cent for the middle and lower bands (i.e. monthly salary at $38,210 and below), with effect from April 1.

The Secretary for the Civil Service, Mr W K Lam, made the offer today (Tuesday) to the staff sides of the civil service central consultative councils.

"The offer for the upper and middle bands is in line with the net pay trend indicators which reflect the average salary increases for private sector employees. The offer for the lower band is brought up to the same level as the middle band in line with the established practice,” Mr Lam said.

In advising on the size of the offer, the Govemor-in- Council took into account the findings of the pay trend survey, the staff sides’ pay claims, the state of the economy, the budgetary position of the Government and the views of the community at large.

Despite some suggestions that the pay adjustment should be brought up to inflation this year, the Government considers there are no overriding reasons for doing so.

“The pay adjustment offer is the result of a careful balance between the Government's responsibility to civil servants as a good employer and its wider responsibility to the community,” Mr Lam said.

The Government will make a final decision on the pay adjustment later this month following consultation with the central staff consultative councils.

End

8

New deputy HKMA chief appointed ♦ * * * *

The Hong Kong Monetary Authority (HKMA) today (Tuesday) announced that the Financial Secretary has appointed Mr Norman Chan as Deputy Chief Executive with effect from last Saturday (June 1).

"I am very pleased with Mr Chan’s appointment which will strengthen the senior management of the HKMA in dealing with many important strategic issues facing Hong Kong in the run up to 1997 and beyond.

"This is a crucial step to reinforce our efforts to develop Hong Kong as the premier financial centre in Asia," said the Chief Executive of HKMA, Mr Joseph Yam.

Mr Chan has filled a newly created Deputy Chief Executive post responsible for monetary management, market infrastructure including payment systems, development of debt market, administration and finance.

"I am very honoured to be appointed as Deputy Chief Executive and will make my best endeavours to assist the Chief Executive in meeting the challenges ahead - to deliver monetary7 stability and to enhance the efficiency and robustness of Hong Kong’s financial market infrastructure," said Mr Chan.

Mr Chan joined the Government as an Administrative Officer in 1976. He was promoted to the rank of Administrative Officer Staff Grade B in 1992 while he was serving as Deputy Director, Office of the Exchange Fund.

He was appointed Executive Director in 1993 when the Office of the Exchange Fund and the Office of the Commissioner of Banking were merged to form HKMA.

End

9

New franchise for New Lantao Bus approved *****

The Govemor-in-Council today (Tuesday) approved in principle the terms of a new franchise for New Lantao Bus Company (1973) Limited (NLB) which would confer upon the company the right to operate a public bus service on eight routes for 10 years from April 1, 1997.

"Having regard to NLB’s performance, and considering a longer franchise will enable the company to plan ahead and to secure the financial support of the banking sector for its investment, we have recommended that a franchise with a period of 10 years be granted to NLB", a government spokesman said.

He said a number of changes and several new provisions were incorporated into the new franchise, including a new requirement for a mid-term review.

"The mid-term review is to be conducted after the fourth year of the new franchise.

"Based on the results of such a review, the Govemor-in-Council may, if the need arises, and with the consent of NLB. amend the terms of the franchise," he said.

He emphasised that the new provisions would enhance the Administration’s role in monitoring NLB’s services.

Since this was a major franchise straddling 1997, the Chinese side would be consulted before the actual award of the franchise, the spokesman added.

End

Funding for seven language projects awarded ♦ ♦ ♦ ♦ ♦

The Director of Education and Trustee of the Language Fund, Mrs Helen C P Lai Yu, today (Tuesday) approved funds about $5.29 million for seven language improvement projects in the second round of the Fund's fourth allocation exercise.

Successful applications are a cross-language, four Chinese (including Putonghua) and two English language projects.

10

The cross-language project is to set up a multimedia language resource centre for language teachers in 1996-97. It was proposed by the Education Department and a total of $4.5 million had been awarded.

The Chinese language projects include organising two essay competitions and promotional activities of Putonghua and providing moderately mentally handicapped students with training to strengthen their communication power.

The English ones are to develop instructional materials for intensive English courses for English-medium Secondary 6 and 7 students and a language-intensive interactive World Wide Web serialised drama package based on the findings of a research on grammatical and lexical problems encountered by local secondary students.

As today. 85 projects arc supported by the Language Fund, involving a total of $116.57 million.

The Fund, set up in May 1994 with an initial allocation of $300 million, is to support proposals and initiatives aiming at improving Chinese (including Putonghua) and English language proficiency of the students and members of the public.

It also enhances existing efforts to meet temporary' shortfalls in language teaching resources and encourages research into problem areas and initiation of new approaches.

End

Unlicensed clubhouse operator fined

*****

A clubhouse operator was fined $20,000 by Eastern Magistracy today (Tuesday) after pleading guilty to operating an unlicensed club in Shek O.

The court heard that the operator of an establishment at 770 Shek O Village had submitted an application to the Home Affairs Department's Licensing Authority for a certificate of compliance.

The application, however, was rejected because the clubhouse was a temporary structure and it was located on unicased government land.

11

In February, officers of the Licensing Authority inspected the establishment and found it was being operated as a member's clubhouse without a certificate, contravening Section 5 of the Clubs (Safety of Premises) Ordinance.

A spokesman for the department reminded the public that anyone who operated a club without a certificate of exemption or a certificate of compliance was liable to a maximum fine of $200,000 and two years' imprisonment.

He also stressed that enforcement action would continue to be taken against unlicensed clubhouses to ensure that they were being operated with proper regard for fire and structural safety.

End

Over 16,500 sale and purchase agreements lodged in May *****

A total of 16.538 sale and purchase agreements for building units, including both residential and non-residential properties, were lodged with the Land Registry last month.

The figure represents an increase of 72.2 per cent from that of April this year and an increase of 41.7 per cent when compared with May last year.

The total consideration of these agreements in the month is $46.60 billion, up 57.8 per cent and 27.8 per cent when compared with the amounts for April 1996 and May 1995 respectively.

rhe figures are contained in the monthly statistics released today (Tuesday) 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 April 1996 and May 1995 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.

These 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

12

Hong Kong Monetary Authority tender results

*****

Tender date 4 June 96 4 June 96

Paper on offer EF bills EF bills

Issue number Q623 H666

Issue date 5 June 96 5 June 96

Maturity date 4 Sept 96 4 Dec 96

Amount applied HKS5.670 MN HK$2,680 MN

Amount allotted HK$ 1,500 MN HK$800 MN

Average yield accepted 5.14 PCT 5.28 PCT

Highest yield accepted 5.15 PCT 5.29 PCT

Pro rata ratio About 6 PCT About 35 PCT

Average tender yield 5.16 PCT 5.30 PCT Hong Kong Monetary Authority

Tenders to be held in the week beginning June 10, 1996 -

Tender date 10 June 96 11 June 96 11 June 96

Paper on offer EF notes EF bills EF bills

Issue number 5106 Q624 Y690

Issue date 11 June 96 12 June 96 12 June 96

Maturity date 11 June 2001 11 Sept 96 11 June 97

Tenor 5 years 91 days 364 days

Amount on offer Coupon HK$500+100MN 7.23 PCT HK$l,500+300MN HKS500+150MN

End

- 13 -

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

$ million Time (hoilis) Cumulative change (Smillion)

Opening balance in the account 2,730 0930 -770

Closing balance in the account 1,890 1000 -770

Change attributable to : 1100 -770

Money market activity -770 1200 -770

LAF today -70 1500 -770

1600 -770

LAF rate 4.00% bid/6.00% offer TWI 124.2 *+0.2* 4.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.02 2 years 2805 6.30 100.07 6.36

1 month 5.05 3 years 3904 6.30 99.00 6.79

3 months 5.15 5 years 5103 6.75 97.74 7.45

6 months 5.28 7 years 7305 7.60 99.25 7.89

12 months 5.67 5 years M502 7.30 99.21 7.65

Total turnover of EF bills and notes - $16,226 million

Closed June 4, 1996

End

DAILY INFORMATION BULLETIN

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

Wednesday, June 5,1996

Contents Page No.

Transcript of the Governor’s media session................................ 1

Chief Secretary in New York............................................... 5

Governor visits Tai Po.................................................... 6

District Court Equal Opportunities Rules welcomed......................... 7

Taxation agreement on airline income with Korea reached................... 7

Central allocation of primary one places to be announced............. 8

VMs from High Island Detention Centre to be transferred.................. 10

Monitors’ Report submitted to CS......................................... 10

Insider Dealing Tribunal hearing..................................... 11

Schools invited to upgrade teaching posts............................ 11

Courses on drug education for secondary school teachers.................. 13

Outstanding home economics students to be awarded........................ 14

Three lots of land to let................................................ 15

Hong Kong Monetary Authority money market operations..................... 16

1

Transcript of the Governor's media session *****

Following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting Tai Po District this (Wednesday) afternoon:

Governor: I'm pleased to have been able to pay another visit to Tai Po, a district which I know pretty well. I walk here quite often and I come to church from time to time as well. But it was good to have another official visit to the District Board and to be able to discuss some of their problems and challenges with them.

Perhaps I should add one other thing about my programme today. I had a meeting this morning with the Philippines Foreign Minister Mr Siason in which we discussed a number of issues, including the position of Filipino domestic helpers in Hong Kong. I told him what a valuable contribution the almost 130,000 Filipino domestic helpers make to the life of our community. I said that I saw no reason why their position should change after 1997, but pointed out that that was entirely a matter for the SAR Government under article 166 of the Basic Law. I also noted that a number of senior Chinese officials had given exactly the same reassurance both to Filipino ministers and had given the same reassurances unofficially to us in Hong Kong as well. But he confirmed that they had had those reassurances from senior Chinese officials. So I think that was a useful point to come out of that meeting, a confirmation that policy regarding the Filipino domestic helpers is entirely a matter for the SAR Government. And I don't imagine that policy on that issue would be changed substantially from what it is today. People make a very big contribution today and I'm sure that that contribution will be wanted in the future.

Question: Mr Governor, there is a report saying that Jiang Zemin and Heseltine had compromised that the SAR Chief Executive should be accepted by the British Government. Is that true?

Governor: No. I think that Mr Heseltine and Mr Jiang Zemin had a very useful discussion about a number of issues including the selection of the Chief Executive. But the President's views on that were made clear I think either the same day or the following day by the Foreign Ministry press spokesman who was in Zhuhai with the President. But I can't add anything to that.

Question: Governor, much has been, made on the last two weeks on expression of freedom...

> >

- 2 -

Governor: I don't understand why that is inevitable and I don't see how it can happen if the Joint Declaration and the Basic Law are adhered to. For example, the position on freedom of the press, the freedom of speech, is absolutely clear in the Joint Declaration. It's absolutely clear in article 27 of the Basic Law. Director Lu made some remarks in a television interview about a week ago which I hope will be clarified. He suggested that national laws might affect freedom of speech in Hong Kong, but article 18 of the Basic Law sets out exactly what those national laws should be and none of them have anything to do with freedom of speech at all.

I think there's also some confusion about the difference between reporting and advocacy, a point which Director Lu has referred to again in a press conference today. At present, we don't make any distinction here in Hong Kong. You can write a column advocating a particular position as a journalist as you know. You can also report things as a journalist. That's what free speech means. So what Director Lu appeared to be saying today I think suggested that the position would be different after 1997. Now, I've only got taped reports to go by and what I suggest is required is a great deal more clarification of one simple point - that the freedom of the press which is enjoyed and enjoyed responsibly before 1997 will also exist after 1997. I welcome the fact that Director Lu is travelling around a number of countries saying in his own words that he is a salesman for Hong Kong. It's a tremendous success story and I'm delighted that he recognises that. But I think the reassurances that he's being pressed for require rather clearer answers. Yesterday there were press reports also I think in one of our papers the South China Morning Post of what Director Lu is said to have said to a group of Japanese parliamentarians about freedom of assembly after 1997. Again the position on freedom of assembly should be absolutely clear under the Joint Declaration and the Basic Law. I do not - I want to make this absolutely plain - I do not want to assume that Director Lu has said things when all I have seen is a press report of reported remarks and quotations from Japanese parliamentarians who are rather surprised or shocked by his remarks. But again it's something that requires clarification because otherwise it's inevitably, as your question suggests, it is going to worry people. Freedom of assembly, freedom of speech here in Hong Kong should be guaranteed by the Joint Declaration and the Basic Law. No ifs or buts, no qualifications, no phrases in brackets, no footnotes, absolute. And I think that needs to be clarified by the senior Chinese officials who have been I think causing a certain amount of concern.

Question: Are you suggesting that there will be a violation of the Basic Law by banning demonstrations...?

3

Governor: Well, you look at what the Basic Law and the Joint Declaration say about these matters. They are absolutely plain, and I hope that we can have these points clarified. I hope you'll notice that once again it isn't the Hong Kong Government which is saying or doing things which are causing confusion or needing to be clarified. So let's have some clarifications which will reassure people very quickly.

Question: Mr Patten. With due respect, some Chinese officials have been saying it's actually ... you are requested ... you are actually required clarification. You have just said that as journalist we are always able to write reports and columns expressing ideas and opinions. According to the Chinese officials, that obviously seems to be out of the question as far as they are concerned. What sort of assurances can you give the press? What can we do ...?

Governor: You've just heard me describe to you precisely in terms what it is in the Joint Declaration and what is in the Basic Law. If there are Chinese officials who are saying well it is not really quite like that, we need to know fast what exactly they do think is like.

Question: Mr Patten, how if Mr Lu has really said what has been reported in the SCMP this morning, what can the Government do?

Governor: Well, if Director Lu ... I would like ... I think it's fair to Director Lu to say that the first thing that we require is some clarification of what he said. Director Lu must tell us what he said to those Japanese parliamentarians. If what he said is what he's reported to hdve said, then we'll want to take it up in the Joint Liaison Group and through other channels. I want to make that absolutely clear these are important matters, they touch on some of the fundamental aspects of life here in Hong Kong as we've seen in the last twenty-four hours.

Question: Will there be any discussion in the JLG, the plenary that is going on at the moment...?

Governor: Yes.

Question: Governor, not mention after 1997, even recently there are people worry before 1997 there is some pressure from the Hong Kong Government when they organise assembly such as the June 4 candle light, next year there may be some pressure form the Hong Kong Government that there will be no place to organise this kind of...?

4

Governor: Look, let me... I mean I don't know how often I have to say this things, but I said very clearly on the record, in reply to a LegCo member last week in the Legislative Council precisely what my position was on June 4 demonstrations this year and any other year. The position is absolutely plain. These are demonstrations which come within our laws, the sort of demonstrations which should be able to take place in a free and open and plural society. There is no question of us changing the position this year or next year. The only question which has arisen is whether or not the whole of Victoria Park will be available next year, because the Urban Council have to decide when their comprehensive re-development programme is going to begin and what exactly it's going to involve. I cannot believe that the plan will be so comprehensive as to make it impossible for Victoria Park to be used next year or for some other venue which is suitable to be used. So don't even think that this Government, that the Government for which I am responsible will do anything to prevent people going about their lawful business peacefully as so many thousands did last night. Is that, do I have to ever answer that question again?

Question: There is a saying that the Hong Kong Government has put forward some sort of legislation regarding subversion to the JLG for discussion, is that the case?

:• -in;-

Governor: Yes. We've put forward proposals for our laws to localise questions like subversion and sedition as were applied to under the localisation of laws programme. The proposals that we've put forward through the JLG are entirely consistent with the Bill of Rights and the international covenants on civil and political rights and I hope that we'll get a response from Chinese officials as soon as possible. All these issues are brought to the top of the agenda, not by anything which the Government of Hong Kong is doing. Why you are asking questions about Basic Law Article 23 today, for the perfectly good reason, that things that have been said by Chinese officials in the last week have made that a concern in people's minds. So just let people remember sometimes who it is that ties the knots. Thank you.

End

5

Chief Secretary in New York

*****

The Chief Secretary, Mrs Anson Chan, on Tuesday (New York time) continued her programme in New York City as part of the Hong Kong/USA promotion.

Highlighting the day's events was a half-hour private meeting with New York City Mayor Rudolf Giuliani. During the meeting in the mayor's office at New York's City Hall, Mrs Chan and Mayor Giuliani discussed the extensive business and cultural links between New York City and Hong Kong.

Mayor Giuliani, who has taken progressive steps to create a more favourable climate for economic growth in New York, has expressed admiration for Hong Kong's entrepreneurial spirit.

In an official proclamation issued by the mayor to honour the promotion, Mayor Giuliani praised Hong Kong's economic success and cited the many ties between the two great port cities.

During her busy day, Mrs Chan briefed several think-tanks, including the trustees of the Asia Society, held a round-table discussion with the Council on Foreign Relations, and met with the trustees and senior members of the National Committee on US-China Relations.

She has also given a live interview with CNN "Business Asia" earlier in the morning.

Tomorrow (Wednesday), the focus of the promotional activities will be on the day-long business conference. Mrs Chan will deliver a keynote luncheon address. She will then officiate at the ceremony to mark the Hong Kong Wonder's Never Cease exhibition at New York's South Street Seaport.

Later in the day, Mrs Chan will travel to Dalia, Texas, for the next leg of the three-city promotion. The promotion concludes in Los Angeles on June 11.

End

6

Governor visits Tai Po * * * * ♦

The Governor, the Rt Hon Christopher Patten, today (Wednesday) visited Tai Po to see for himself some of the latest developments and social services in the district.

He started the visit at the new Morning Post Centre of South China Morning Post Publishers Ltd located in the Tai Po Industrial Estate where he was briefed on the latest technology in publishing.

Afterwards, Mr Patten visited the Pinehill Village which houses a number of service units of the Hong Kong Association for the Mentally Handicapped. The association is the largest non-governmental organisation providing services to mentally handicapped in the territory.

At the Pinehill Village Advanced Training Centre, the Governor saw for himself the training being given to the mentally handicapped children. He complimented on the quality of the children's handicraft at the Pinehill Pottery.

The Governor then dropped in at the Tai Po Baptist Church Baptist Oi Kwan Social Service Au Cheung Sau Fong Social Centre for the Elderly in the Fu Heng Neighbourhood Community Centre. Opened in 1991, the centre serves about 340 elderly persons aged 60 and above. »

Before concluding the visit, Mr Patten met with district board members and local personalities at a reception.

The Governor was accompanied by the Director of Home Affairs, Mrs Shelley Lau, and Tai Po District Officer, Mr Frankie Lui.

End

7

District Court Equal Opportunities Rules welcomed ♦ ♦ ♦ ♦ ♦

The Chairperson of the Equal Opportunities Commission, Dr Fanny Cheung Mui-ching, welcomes the District Court Equal Opportunities Rules and the Labour Tribunal (General) (Amendment) Rules 1996 tabled to the Legislative Council today (Wednesday).

Dr Cheung recognises that the court is an important channel of redress for the aggrieved under the Sex Discrimination Ordinance and the Disability Discrimination Ordinance, and it is therefore important for the rules to spell out the measures that will enhance the accessibility of the court before the ordinances are put into operation.

The new Equal Opportunities Register provided for under the rules should facilitate the expeditious handling of cases filed under the two ordinances by the court.

Furthermore, the rules allow non-legally qualified representatives to appear in and address the court. Victims under the two ordinances will not be deterred on account of legal fees from bringing proceedings.

In line with the spirit of the two ordinances, the Equal Opportunities Commission is preparing a sound complaints handling and conciliation mechanism to ensure that a full range of legal services will be made available to claimants when it starts full operation targeted for September this year.

End

Taxation agreement on airline income with Korea reached

*****

Hong Kong has reached an agreement with the Republic of Korea on the arrangements to provide double taxation relief for airline income.

"The arrangements are contained in the Air Services Agreement between Hong Kong and the Republic of Korea which was signed in March 1996," a government spokesman said.

"Under the arrangements, Hong Kong will tax the income generated from international traffic of Hong Kong airlines derived from the Republic of Korea and which has been granted full tax relief by the Republic of Korea.

8

"In return, Hong Kong will forgo the right to tax the income of Korean airlines derived from Hong Kong if such income is subject to tax in the Republic of Korea."

The Govemor-in-Council has made an order under the Inland Revenue Ordinance to declare that the double taxation relief arrangement for airline income with the Republic of Korea should take effect. The order will be gazetted on Friday (June 7) and tabled in the Legislative Council on June 26.

"It is our policy to include provisions on double taxation relief for airline income into Air Services Agreement negotiated between Hong Kong and our bilateral aviation partners on a case by case basis." the spokesman said.

End

Central allocation of primary one places to be announced * * * * *

The Education Department will this Saturday (June 8) announce the results of the Central Allocation of primary one places for school entry in September.

A total of 17,672 children participating in the scheme are allocated to schools of their first three choices. This represents 63.9 per cent of the 27,640 children taking part in the allocation.

Parents who have completed a choice of schools form for Central Allocation in March are advised to collect the primary one registration form from the Distribution/Collection Centre of their home school net on Saturday or Sunday (June 8 and 9) from 9.30 am to 12.30 pm or 1.30 pm to 4.30 pm.

They should bring along the parent’s copy of the application form for admission to primary one or the choice of schools form for identification purpose.

The primary one registration form will show the name and address of the school to which their children are allocated, together with the dates for registration and some notes to parents.

Parents arc requested to complete the registration formalities on June I I or 12. Registration hours for AM schools arc from 9 am to 12 noon whereas those for PM schools arc from 2 pm to 5 pm.

9

For whole-day schools, the registration hours are 9 am to noon and 2 pm to 4 pm.

If parents cannot register their children with the allocated school on the specified dates for some important reasons, they must contact the school's responsible person direct beforehand for alternative arrangements.

Failing that, they would be deemed to have given up the place allocated.

Upon registration, the primary one registration form should be surrendered to the school.

Parents must note that all places allocated are final. Request for re-allocation without valid justification will not be entertained.

In case the parents have special difficulties, such as moving to another school net far from the school allocated, they are advised to contact the Primary One Admission Unit on the second floor, 269 Queen's Road East, Wan Chai, Hong Kong, in person to seek assistance.

They should bring along the original and copies of supporting documentary proof of the new address, such as rental receipts, title deed of the property, rates demand notes, water bills or electricity bills bearing the name of the parent or the guardian of the child.

Should parents find it necessary to transfer the child to another school after registration, they are advised to get some assurance of acceptance before they retrieve the primary one registration form from the original school.

Retrieval of the form means cancellation of the school place already allocated.

For children who have secured a discretionary place and have already registered with a school last December, there is no need to repeat the registration formalities.

Parents wishing to obtain general information on primary one admission procedures are welcome to use the Education Department's automatic telephone enquiry service at 2891 0088.

10

For further enquiries, they may contact the Primary One Admission Unit on 2832 7710 (for Hong Kong, Tai Po and North District), 2832 7720 (for Kowloon), 2832 7730 (for New Territories), and 2832 7700 (for general enquiries) during office hours.

Special arrangement has been made for the Unit’s enquiry service to operate from 9 am to 12.30 pm and from 1.30 pm to 4.30 pm on both June 8 and June 9.

End

VMs from High Island Detention Centre to be transferred

*****

The Government announced that a group of about 110 Vietnamese migrants will be transferred from the High Island Detention Centre today (Wednesday) in preparation for their return under the Orderly Repatriation Programme.

They will be moved to Victoria Prison for pre-flight documentation and medical checks prior to leaving Hong Kong in four flights on June 10, 13, 18 and 21.

The transfer will be observed by independent monitors.

End

Monitors’ Report submitted to CS

*****

The monitors appointed to observe the transfer of Vietnamese migrants selected for the Orderly Repatriation Programme from High Island Detention Centre to Victoria Prison today (Wednesday) have submitted their report to the Chief Secretary.

The four monitors comprised two non-official justices of the peace. Mr Hui Wor-lam and Mr Timothy Ha Wing-ho; and representatives from two non-govemment organisations, Mr Christopher Stokes from Medecins Sans Frontieres and Ms Harriet Sewell from Christian Action.

End

11

Insider Dealing Tribunal hearing *****

The main hearing on the insider dealing case relating to Yanion International Holdings Ltd. will start on Monday (June 10).

Mr Justice Burrell, Chairman of the Second Division of the Insider Dealing Tribunal, will receive evidence and testimonies from parties concerned.

He will be assisted by two lay members, Mr Felix Chow Fu-kee and Mr Michael Sze Tsai-ping.

The hearing scheduled for 9.15 am on Monday will take place at Court No. 16 of Supreme Court, 38 Queensway, Hong Kong.

End

Schools invited to upgrade teaching posts

*****

Aided primary schools are invited to apply for upgrading existing teaching posts to graduate posts in the 1996-97 school year as part of the Government's effort to improve the quality of teachers.

The Education Department today (Wednesday) issued a circular to all aided primary schools, including special schools and combined-level special schools, inviting applications for a quota to regrade eligible serving teachers in the Certificated Master/Mistress grade to the Primary School Master/Mistress grade in the coming school year.

The circular followed the one issued last week to invite applications for a quota to appoint pre-service graduates as teachers.

Senior Education Officer, Mr K M Lau, said that of the 282 graduate teaching posts provided by the Government to aided schools in the 1996-97 school year, 226 will be available for schools to regrade eligible serving teachers.

The remaining 56 posts, ’representing 20 per cent, have been reserved for schools to recruit pre-service graduates.

12

"When an aided primary school has acquired a quota, the supervisor of the school will appoint one eligible serving teacher with consistently good performance to fill the quota assigned," Mr Lau said.

"Guidelines on appointment to the Primary School Master/Mistress Grade have been sent to aided primary schools."

As recommended by the Working Group on Provision of Primary Graduate Teachers, serving teachers who possess a recognised Hong Kong first degree or equivalent are eligible for consideration for regrading.

"This means that the relevance requirement of teachers' qualification to primary education, special education or primary school curriculum has been waived," Mr Lau said.

He said in view of the limited number of primary graduate posts available, each school would not be provided with more than two posts in the 1996-97 school year, including those obtained in previous exercises.

"In allocating quotas to schools, priority will first be given to schools not yet provided with a graduate post, and then to schools already given one graduate post or one quota to appoint pre-service graduates," he said.

Supervisors of schools wishing to bid for a quota to regrade serving teachers should apply not later than June 19. Schools will be notified about the allocation of quota by early July to facilitate follow-up action on regrading of their teachers.

"If there are no eligible serving teachers, schools may also use this quota for recruiting pre-service local full-time graduates of Bachelor of Education in Primary Education," Mr Lau said.

End

13

Courses on drug education for secondary school teachers ♦ ♦ ♦ * *

The Education Department is organising a series of three-day drug education courses which will last until mid-August in order to achieve the target of training one teacher for every secondary school on drug education by 1997.

These training courses are part of the effort to step up anti-drug education as advocated at the Governor's anti-drug summit. Since July 1994, more than 200 schools have sent their teachers to attend drug education courses.

A principal inspector of the department's Advisory Inspectorate, Mr Ho Chung-nin, said: "These courses aim at enhancing teachers' knowledge on drug, equipping them with skills to handle students with drug problem and briefing them on the ways of conducting preventive drug education in school.

"Priority will be given to schools sending their teachers for the first time."

Six drug education courses with a total enrolment of 210 will be run. Five of them are jointly organised by the Advisory Inspectorate and the Community Drug Advisory Council.

The other is a regular course jointly organised by the Inspectorate and the Narcotics Division.

Apart from running training courses for teachers, the department has launched a pilot scheme on school-based drug education courses in 21 schools and sponsored the Life Education Activity Programme.

In addition, the department has also developed model programmes for parents, staged a roving exhibition, set up a pilot home-school link enquiry service in three schools and opened a drug education resource centre.

Education programmes have also been introduced in 12 drug treatment and rehabilitation centres for drug abusers aged 18 or below, and research was initiated on the use of peer support and life skill counsellors to beat drugs.

End

14

Outstanding home economics students to be awarded

*****

Fifty-two secondary students, including two boys, will receive the 1996 Outstanding Home Economics Students awards in a ceremony on Saturday (June 8).

The Assistant Director of Education (Chief Inspector of Schools), Mr Ho Che-leung, will officiate at the ceremony.

The scheme, organised by the Home Economics Section, Advisory Inspectorate of the Education Department, aims at promoting secondary students’ interests in home economics and developing their appreciation of the value of the subject in meeting their future personal and family needs.

Under the theme 'Home Economics in my school', the scheme is divided into the junior and senior sections, which open to SI to S3 and S4 to S7 students respectively.

More than 20,000 students participated in the scheme.

Chau Kim-tung from Queen Elizabeth School, Fung Wai-ting from Assembly of God Hebron Secondary School and Wong Siu-king from Sheng Kung Hui Lam Woo Memorial Secondary School won the first, second and third prizes of the junior section respectively.

For the senior section, Fung Chui-shan from Ying Wa Girls' School, Cheung Lok-pui from Diocesan Girls' School and Lai Oi-shuen from Daughters of Mary Help of Christians Siu Ming Catholic Secondary School were the winners of the first three awards.

They will be each presented with cash prize and a trophy. Their teachers will also receive a souvenir in the ceremony.

In addition to the six winners, 45 outstanding students from 40 secondary schools have won the highly commended or nomination prizes.

The winning entries will be displayed in the ceremony.

End

15

Three lots of land to let ♦ ♦ ♦ ♦ *

The Lands Department is inviting tender for the short-term tenancy of three pieces of government land in Kwun Tong and Yuen Long.

The first lot located in Hip Wo Street, Kwun Tong, has an area of about 4,780 square metres. It is intended for use as a fee-paying public car park for the parking of private cars and light buses.

The tenancy is for one year, renewable quarterly.

The second and the third lots both situate at Ping Fuk Lane, Tong Yan San Tsuen, Yuen Long. With an area of about 550 square metres and 530 square metres respectively, they are intended to be used for repairing, lubricating or maintenance of motor vehicles.

The tenancies for both lots are for two years, renewable quarterly.

The closing date for submission of tenders is noon on June 21.

Tender forms, notices and conditions may be obtained from the Lands Department, 14th floor, Murray Building, Garden Road, and the respective District Lands Offices of Kowloon East and Yuen Long.

Tender plans can also be inspected at these offices.

End

16

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

Imiilkm Time (hours) Cumulative change (Smiilion)

Opening balance in the account 1,890 0930 +70

Closing balance in the account 2,323 1000 +70

Change attributable to : 1100 +70

Money market activity +33 1200 +68

LAF today +400 1500 +68

1600 +33

LAF rate 4.00% bid/6.00% offer TW1 124.4 *+0.2* 5.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.03 2 years 2805 6.30 100.09 6.34

1 month 5.05 3 years 3904 6.30 99.01 6.79

3 months 5.15 5 years 5103 6.75 97.72 7.45

6 months 5.29 7 years 7305 7.60 99.31 7.88

12 months 5.67 5 years M502 7.30 99.05 7.70

Total turnover of EF bills and notes - $24,254 million

Closed June 5, 1996

End

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, June 5,1996

Contents Page No.

Legislative Council meeting: Public Bus Services Ordinance......................................... 1

Matrimonial Causes (Fees) (Amendment) Rules......................... 2

Banking (Amendment) Bill........................................

I Aviation Security Bill...........................................

New Territories Land Exchange Entitlements Bill.................

Government Minute on Public Accounts Committee's report............. 9

. Maintenance works on hazardous slopes near schools................ 12

Central compensation fund for employees............................ 14

Agreement on liberalisation of global telecom market............... 16

Maintenance of law and order important............................. 18

/Detained children's.

Contents

Page No,

Detained children’s rights to obtain legal assistance................... 20

Measures to prevent illegal immigrants enter to commit crime............ 21

Home Purchase Loan Scheme applications.................................. 22

Outsourcing of data processing operations by banks...................... 24

Disposal of toxic wastes................................................ 26

Medical treatment for chronic patients.................................. 27

Computer courses in public secondary schools............................ 28

Communication equipment for ambulance staff............................. 30

Ventilation inside markets in public housing estates.................... 32

Remuneration package of HKMA chief...................................... 33

Remuneration package of HKMA staff...................................... 34

Marine accidents in Hong Kong........................................... 36

Computer studies for primary students................................... 38

Statistics of liquidated limited companies.............................. 39

Housing benefits for civil servants and teaching staff.................. 41

Workmen compensation ordered by Labour Tribunal......................... 44

1

Public Bus Services Ordinance * ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Transport, Mr Haider Barma, in moving the resolution under the Public Bus Services Ordinance in the Legislative Council today (Wednesday):

Mr President,

I move the Resolution standing in my name on the Order Paper.

Sections 26 to 32 of the Public Bus Services Ordinance provide for a profit control scheme and also stipulate certain provisions relating to the calculation of operating costs and the disclosure of operational and financial information. A significant feature is that the scheme does not guarantee any minimum level of profit but limits the maximum amount that can be earned by a franchised bus operator. Indeed, our current policy for processing fare increase applications is to take various factors into account, particularly operating costs, performance and public affordability rather than to provide for a profit level based on a percentage rate of return on average net fixed assets. Given this practice our conscious approach has been to exclude all references to a profit control scheme when negotiating new bus franchises.

Citybus is not subject to a profit control scheme under its existing franchise. Likewise, its new franchise, which will commence on 1 September 1996, will not be subject to any such scheme.

We therefore need to disapply sections 27, 28, 29 and 31 of the Public Bus Services Ordinance which govern the operation of the profit control scheme whilst retaining -

(a) section 26 which defines the meaning of key terms;

(b) section 26A which specifies that financial penalties levied against the bus company cannot be counted as operating expenses for the purposes of fare determination;

(c) section 30 which enables the Government to specify depreciation rates in respect of franchise related fixed assets; and

(d) section 32 which requires the company to produce accounts and other information needed for the effective monitoring of bus operations.

The Resolution before Honourable Members will give effect to the arrangements I have described. Thank you Mr President.

End

2

Matrimonial Causes (Fees) (Amendment) Rules ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the motion on the Matrimonial Causes (Fees) (Amendment) Rules 1996 in Legislative Council today (Wednesday):

Mr President,

I move the motion standing in my name on the Order Paper.

In accordance with Section 54 of the Matrimonial Causes Ordinance, the Chief Justice has made the Matrimonial Causes (Fees) (Amendment) Rules 1996 to prescribe fees for divorce proceedings commenced by joint application. These require the approval by resolution of the Legislative Council.

At present, divorce proceedings can only be conducted on the basis of a petition. The Matrimonial Causes (Amendment) Ordinance enacted in May 1995 provides, among other things, for divorce by joint application. The Chief Justice has already made the Matrimonial Causes (Amendment) Rules 1996 to prescribe the legal procedures in connection with divorce by joint application. The main procedures involved are the filing of a joint application for divorce and the entering of the joint application in the special procedure list. The Matrimonial Causes (Amendment) Rules 1996 were tabled in this Council on 8 May 1996 and will come into operation on a day to be appointed by the Chief Justice in the Gazette.

The processing of joint applications for divorce is a new service to be provided by the Judiciary. It is therefore necessary to prescribe fees payable in order to implement the Matrimonial Causes (Amendment) Rules 1996. For divorce proceedings conducted on the basis of a petition, a fee of $630 is now charged for both filing a petition for divorce and setting down an undefended cause for trial. As the work involved in handling the filing of a joint application for divorce, and its entry in the special procedure list is similar to that in handling the filing of a petition and setting down an undefended cause for trial respectively, we propose to charge a fee of $630 for each of the two new procedures.

The proposed fees will bring in revenue estimated at $650,000 per annum.

Mr President, I beg to move.

End

3

Banking (Amendment) Bill ♦ * * ♦ ♦

Following is the speech by the acting Secretary for Financial Services, Mrs Lessie Wei, in moving the second reading of the Banking (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

I move that the Banking (Amendment) Bill 1996 be read a second time.

The main objective of the Bill is to amend the Banking Ordinance to provide a legal framework for the regulation of the issue of multi-purpose stored value cards and of foreign exchange and deposit brokers operating in the wholesale market. We also take the opportunity to amend other provisions of the Ordinance to bring them up to date with current requirements and streamline the appeal and penalty provisions.

Multi-purpose Stored Value Cards

We need to regulate multi-purpose stored value cards because the issue of such cards is akin to the taking of deposits or to the issue of bank notes. A proliferation of these cards would also have significant implications for the payment system and may create new opportunities for money laundering.

Restricting the issue of multi-purpose stored value cards to authorised institutions is in line with the regulatory inclination of European countries and Singapore. While the market for stored value cards is still evolving and some countries have adopted a "wait and see" approach, we see the need for early action. The later we introduce the regulatory framework, the more difficult it would be to modify any features in the market which are later found to be inappropriate. The legal framework which we propose to put in place now, however, must contain adequate flexibility so as not to stifle technology innovations.

In deciding who may issue multi-purpose stored value cards, we seek to strike a balance between the broad public interest of product innovation and convenience and the need to maintain the stability of the payment system.

We therefore propose that:

(a) licensed banks would be deemed to be approved to issue or facilitate the issues of general purpose multi-purpose stored value cards;

4

(b) a company the principal business of which is or will be the issuing or facilitating the issue of multi-purpose stored value cards (i.e. what we call "a special purpose vehicle”) may be approved as a restricted licence bank or a deposit-taking company; and

(c) the Monetary Authority would be given a discretionary power to exempt a stored value card from the regulatory regime.

In applying these criteria, it is our intention that the issue of ’’general purpose" multi-purpose stored value cards should be confined to licensed banks (which are the only entities having access to the payment system). The cards to be issued by "special purpose vehicles" will be more limited in scope. The exact extent of the scope will be specified in the guidelines to be developed by the Monetary Authority in consultation with the various interested parties. The multi-purpose stored value cards to be exempted from the regulatory framework would be those which can only be used to pay for an even more restricted range of low value goods and services.

The Bill does not provide for the regulation of single purpose stored value cards as they are similar to prepayment for specific goods and services. This kind of stored value cards is currently not subject to any regulation. Some Honourable Members have suggested that such cards should also be subject to a limit on the maximum value that can be stored on the card as a means to protect cardholders. We shall further study this suggestion and consider whether an amendment should be made at the Committee Stage.

Money Brokers

An orderly and efficient interbank foreign exchange and money market is very important to Hong Kong. The Hong Kong Association of Banks and the Hong Kong Foreign Exchange and Deposit Brokers Association have found self-regulation difficult because of a lack of statutory protection for them in exercising disciplinary actions. We propose that the Monetary Authority should be the authorisation authority for foreign exchange and deposit brokers. A formal authorisation regime will help ensure that high standards of integrity and fair dealing are observed by the brokers. The proposed regulatory framework has the support of both associations.

End

5

Aviation Security Bill ♦ * ♦ ♦ ♦

following is the speech by the Secretary for Security, Mr Peter Lai, in moving the second reading of the Aviation Security Bill in the Legislative Council today (Wednesday):

Mr President,

I move the Second Reading of the Aviation Security Bill.

The international civil aviation community has, over the years, developed a framework of measures to combat unlawful acts of interference against aircrafts, airports and passengers. These measures are embodied in several international conventions, including the Chicago, the Tokyo, The Hague and the Montreal Conventions. Together, they established internationally recognised aviation security standards. Both the United Kingdom and China are signatories to these international Conventions.

At present, we rely on UK aviation security related legislation extended to Hong Kong by a number of Orders-in-Council. These Orders, however, are piecemeal by nature, and do not extend all the relevant international requirements to Hong Kong. They will also ceaSe to apply after 30 June 1997. Although the aviation industry has hitherto been very helpful in co-operating with the Government to maintain a high standard of aviation security in Hong Kong, it will be to the advantage of all of us to have a comprehensive statutory framework for implementing aviation security measures, now and beyond 1997. We have a common interest in ensuring the safety of our airport, the aircrafts flying into and out of it, and the passengers they carry.

The proposed Bill is divided into two main parts; the first part localises the UK legislative provisions currently applying to Hong Kong. These provisions specify offences relating to unlawful activities against the safety of an aircraft. Acts which would cause damage or destruction to an aircraft or which endanger the safety of the aircraft, hijacking, and other offences committed on board a Hong Kong registered aircraft will be offences under the Bill.

The second part of the Bill aims to give a statutory basis to the internationally recommended aviation security measures currently implemented through administrative means. A public officer, who shall be designated the Aviation Security Authority, will be responsible for developing and implementing an Aviation Security Programme. This Programme will provide the guidelines and standards for protecting and safeguarding aircrafts, passengers, crews and the general public against any acts of unlawful interference. The Authority will be empowered to issue directions to any company or agency requiring it to comply with specific requirements under the Aviation Security Programme. Non-compliance may lead to enforcement action and penalties.

6

The aviation industry has been extensively consulted on both the Aviation Security Bill and the Aviation Security Programme during the course of drafting. The Bill and the Programme thus reflect a broad consensus on the most practical way to implement our obligations under the'various international Conventions. Our aim is to implement these aviation security requirements on an ongoing basis in co-operation and consultation with the industry. In broad terms, the action that the Authority will be able to take to ensure compliance with the Aviation Security Programme's requirements is progressive in nature. The process will begin with directions requiring compliance, before actual enforcement actions are taken. Penalties are only sought against persistent offenders and as a last resort. Although the penalties are severe, they are justified having regard to the potential consequences on the loss of life and property, and the damages to our economy of serious aviation security-related incidents.

The Bill does not propose any major change to the arrangements currently in place at the Kai Tak Airport. We have already started discussions with the Airport Authority and the major tenants as regards the proposed aviation security requirements for the new airport at Chek Lap Kok. We are satisfied that our requirements can be met without significant additional financial implications to the industry.

In addition to the informal consultations we have already undertaken with the industry, the Bill also provides for a formal channel for liaison and consultation with the Aviation Security Authority by establishing an advisory Aviation Security Committee. Members of the Committee will include a cross-section of concerned government departments and industry representatives. This Committee will provide advice and assistance to the Authority in his consideration of matters relating to aviation security.

It is important for us to demonstrate to the international community that Hong Kong is meeting, and will continue to meet internationally accepted aviation security standards and obligations. The Bill enables us to do just that and, in so doing, ensure that Hong Kong's airport remains among the safest in the world.

Thank you, Mr President.

End

7

New Territories Land Exchange Entitlements Bill ♦ * * * *

Following is the speech by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in moving the second reading of the New Territories Land Exchange Entitlements (Redemption) Bill in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the New Territories Land Exchange Entitlements (Redemption) Bill.

New Territories land exchange entitlements, commonly known as Letters A/B, were issued between I960 and 1983 to landowners in the New Territories whose land was required for development. Letters A were issued if the land was surrendered to Government before notices of resumption were issued. Letters B were issued if the land was surrendered to Government after notices of resumption had been issued.

Letters A/B holders were entitled to exchange their entitlements, as an alternative to cash compensation, for building land. The land surrendered or resumed was credited with a face value assessed with reference to the level of land values at the time the land was surrendered or resumed.

The issue of Letters A/B was stopped in 1983 because of increasing difficulties in meeting the exchange commitment. Since 1 April 1984, Letter A/B holders have had the additional option of surrendering their documents for cash in accordance with a schedule of monetized values, which are gazetted and revised twice a year. These monetized values are determined having regard to the movements of property prices in the New Territories.

Over the years, about 95% of all the Letters A/B have been redeemed by the Government either through land tenders or cash payment. The Director of Lands estimates that a total of about 6.75 hectares of entitlements are outstanding at present. Out of this, 4.68 hectares of equivalent building land are held by four major property developers. The ownership of the remaining 2.07 hectares of building land is likely to be untraceable because the owners might have died intestate and the estates remain unclaimed or they may have emigrated.

It has been, and remains, the Government's intention to redeem all the outstanding Letters A/B as soon as possible. To this end, sufficient land has been made available in the 1996-97 Land Disposal Programme to cover all the outstanding commitments.

8

Despite the efforts made, it is unlikely that we will be able to clear all outstanding Letters A/B commitments. The wording of the Letters A/B is open-ended as regards the date of redemption. Moreover, we have no way of knowing when the untraceable Letters A/B may surface and their owners seek to redeem them. These untraceable Letters A/B may remain outstanding for a long period of time and Government would not be able to ascertain when it would be called upon to fulfil its commitments to provide land. It is not possible for Government to make land available in each year’s Land Disposal Programme to await for such redemption. In any case, it is not feasible for Government to continue to provide land to redeem the residual untraceable commitments which are likely to be held in small packets. We consider that the best way to completely resolve the question is by way of legislation.

The purpose of the New Territories Land Exchange Entitlements (Redemption) Bill is to make the land exchange entitlements redeemable for cash only rather than land after an appointed date. We will make available in the current financial year sufficient land to redeem the known outstanding entitlements. The new legislation is therefore likely to apply only to those entitlements which are untraceable and likely to be held in such small packets as to make the provision of land for redemption impracticable.

Under the Bill, an owner of a land exchange entitlement may lodge his claim for redemption with the Director of Lands in a specified form. He is required to furnish the Director with any required particulars or evidence in support of his claim.

Redemption money shall be payable by the Director to the owners in proportion to their respective shares in the legal ownership of the land exchange entitlemeftt, at the rates set out in the Schedule to the Bill. The scheduled rates are the most recent values published in the Gazette in respect of land exchange entitlements.

We propose that any redemption money payable shall bear interest from the commencement date of the proposed legislation until the date of payment. The rate of interest payable shall be at the lowest rate payable from time to time by note-issuing banks on deposit at 24 hours’ call.

The Director may, as a condition of making payment of redemption money and interest to a claimant, require the latter to surrender all or some of the documents furnished to the Director in support of his claim. The Director may also require the claimant to execute an indemnity in favour of the Director in respect of any payment made and of all liabilities, losses, costs, charges and expenses incurred by the Director by reason of or in respect of the payment. This is to enable the Government to seek refund and to recover losses from the claimant in case of fraudulent claims.

9

A person who furnishes any false or misleading information in a material particular in connection with a claim commits an offence and is liable to a fine at level 5 and of imprisonment for three months.

We propose that, except as provided in the Bill, all rights against the Government under a land exchange entitlement shall be extinguished on redemption. The legislation shall come into operation on a day to be appointed by the Secretary for Planning, Environment and Lands.

Following the enactment of the Bill, we will seek in due course the approval of the Finance Committee of this Council for the creation of a new subhead under Head 701 - Land Acquisition of the Capital Works Reserve Fund for the payment of redemption money.

Mr President, the New Territories Land Exchange Entitlements (Redemption) Bill is aimed to achieve a practical and fair solution to deal with the outstanding Letters A/B. It crystallises Government's commitments in respect of the untraceable entitlements and helps persuade holders of the other remaining Letters A/B to exchange their entitlements for land as soon as possible. I commend it to Members for favourable consideration.

Thank you, Mr President.

End

Government Minute on Public Accounts Committee's report

*****

Following is the speech by the acting Chief Secretary, Mr Michael Suen, in presenting the Government Minute in the Legislative Council today (Wednesday) in response to Report No 25A of the Public Accounts Committee:

Mr President,

Laid on the table today is the Government Minute responding to the Public Accounts Committee Report No 25A on the subject of "the review of the housing benefits provided by the Hospital Authority to its employees".

Let me, first of all, express my appreciation of the hard work of the Committee in performing its role as a ’’watchdog" over public expenditure. As always, the Administration attaches great importance to the work of the PAC and has examined very carefully its conclusions and recommendations made in the Report.

10

The ExCo's Deliberations

On the PAC’s concern that its scope of investigation is constrained by not being provided with the relevant Executive Council documents, we have already explained very clearly to this Council the Administration’s position on this issue at the Motion Debate on 24 April this year. Suffice it for me to emphasise just this: it is essential to uphold the long standing principle that proceedings of the Executive Council should remain confidential to ensure that there is no inhibition of free exchange and presentation of views. However, the Administration will continue to provide to the PAC every full details of the relevant parts of Executive Council papers, as necessary, though not the papers themselves.

The Prevention Of Double Benefits Rufcs

The Committee has commented on the non-application of the double benefits rule to the cash allowance paid to Hospital Authority staff. We considered then, as we do now, that any attempt to renege on a clear undertaking which we had made to the staff would have had serious consequences on the successful formation of the Authority. That undertaking was that the prevention of double housing benefits rules would not apply in the case of the Flexible Spending Account which was subsequently replaced by a cash allowance. We must not forget the considerable pressure at the time to complete the package and set up the Authority as early as possible, and the then staff sensitivity over the I lospital Authority package.

We agree that it is opportune now to revisit this issue and we have drawn up a plan for the prevention of double housing benefits rules to be applied to the cash allowance of all Authority staff newly appointed after a future cut-off date. The same rules should also be applied to newly appointed clinical staff in the University Medical Schools. We are seeking the views of the Authority and the Universities and will bear their comments in mind in finalising the plan.

As regards serving staff, we have considered the legal and contractual situation and have concluded that the rules should not be extended to the cash allowance received by these staff.

11

Working Group's Review of the Hospital Authority Remuneration Package

On the principle of cost comparability, the Committee has recommended the Administration to clearly define and properly document the principle. We accept that the wording of the principle as quoted in the Audit Report, if taken out of context, might be open to interpretation. We have reviewed the principle of cost comparability which was agreed between Government and the Authority in the design of its package. We have concluded that the principle should continue to be applied in the funding of the Authority. The principle is that, in terms of total cost to Government as an employer, the cost of the Hospital Authority and the civil service remuneration packages should be comparable. The total cost refers to the aggregate of salary and oncost of staff in individual pay Bands using the prevailing cost of the civil service package as the basis of comparison. Since Government’s concern is overall funding of the Authority, it follows that the principle should relate to ’’cost to Government as an employer” rather than "value to the employee".

The Working Group on the Review of the Hospital Authority Remuneration Package, chaired by the Secretary for Health and Welfare, has concluded that, in terms of total cost to Government as an employer, the respective packages in respect of the Hospital Authority and the civil service, excluding the disciplined services, are broadly comparable at present. It is of the view that, over time, the total cost of the Authority and the civil service packages will diverge, with the major contributing factor being the different housing oncost rates.

Government is discussing its plan with the Authority to introduce a revised arrangement to fund the Authority’s staff appointed after a cut-off date to maintain cost comparability over time. Government, however, recognises the Authority's contractual obligations to its serving staff and therefore their staff costs will continue to be funded on the basis of the existing Hospital Authority package.

Here, I would like to stress again that Government is highly appreciative of the dedicated efforts of the Authority staff in ensuring the provision of quality hospital care to the community.

Information to ExCo and LegCo

Finally, I would like to assure this Council that the Administration will continue to make every effort to provide the Executive Council and the Finance Committee of this Council with full information where this would affect significantly the long-term cost of a policy option.

End

12

Maintenance works on hazardous slopes near schools ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Cheung Man-kwong and a reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Legislative Council today (Wednesday):

Question:

With the onset of the rainy season, maintenance works have to be carried out expeditiously on potentially hazardous slopes situated within or in the vicinity of school boundaries. In this connection, will the Government inform this Council:

(a) of the number of schools which have such slopes within or in the vicinity of their boundaries, and the ownership of the land titles of such slopes;

(b) whether the Government carries out periodic inspections to assess the safety of such slopes and informs the school management concerned of the inspection results;

(c) of the procedure for the schools concerned to file applications for slope maintenance works where these need to be carried out; the average time taken between the filing of an application and the completion of the maintenance works, and the parties which will bear the maintenance costs; and

(d) of the liabilities such schools have in the event of landslides occurring, and whether the Government will compensate the parties concerned for any property losses, injuries and deaths; if so, how the amount of compensation is determined?

Reply:

Mr President,

With regard to part (a) of the question, 14 schools have been served with Dangerous Hillside Orders (DHOs) in respect of slopes on private land. Ownership of a private slope is conferred by the conditions in the relevant lease documents. There are another 3 sub-standard public slopes affecting 5 schools being upgraded under the Landslip Preventive Measures Programme of the Geotechnical Engineering Office (GEO).

13

As regards part (b) of the question, for all public slopes within school boundaries, the Architectural Services Department and the Housing Department carry out routine maintenance inspections annually and engineering inspections every five years in respect of non-estate schools and estate schools respectively. Once a substandard public slope is included under the Landslip Preventive Measures Programme, the GEO will request the maintenance department to step up maintenance until the upgrading works by the GEO begin. The schools concerned are informed of the results of the slope inspections and any works or measures that are required. The private slopes within school boundaries in respect of which DHOs have been issued are expected to be regularly inspected by the Authorised Persons appointed by the schools and their consultants. A school issued with a DHO is required to appoint an Authorised Person registered under the Buildings Ordinance to study and carry out the repair works.

On part (c) of the question, as I said before, sub-standard public slopes within or in the vicinity of schools are covered under the Landslip Preventive Measures Programme. All government and aided schools can also apply for urgent slope repairs in emergency cases. Aided schools on private land issued with DI lOs have to appoint an Authorised Person to study and carry out the repair works. All costs in respect of government or aided schools are borne by Government; those in respect of private schools are borne by the owners of the slopes.

In respect of public slopes within school boundaries which are not covered by the Landslip Preventive Measures Programme, emergency works are carried out immediately upon application. It may take nine to eighteen months to complete the slope repair works, depending on factors such as size of the slope and complexity of the works involved.

In relation to part (d) of the question, in the event a landslide causes property losses, injuries or deaths, the owner of the slope concerned could be held responsible under the Common Law. The extent of liability, if any, is a matter for the court to decide. In respect of compensation, aided schools are covered under the block insurance policy on public liabilities and employees' compensation. In addition, Government will restore damaged school premises including furniture and equipment. Private schools have been encouraged to purchase block insurance policy on public liabilities and employees' compensation.

End

14

Central compensation fund for employees ♦ * * * ♦

Following is a question by the Hon Cheng Yiu-tong and a reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council whether it has taken any follow-up action or conducted any feasibility study since the motion urging the Government to set up a central compensation fund for employees was carried in this Council on 3 November 1993 and, if so, what the details are?

Reply:

Mr President,

By way of background, let me first explain that the existing employees compensation system comprises two different systems - an individual liability system underpinned by the Employees Compensation Ordinance, and a collective liability system underpinned by the Pneumoconiosis Compensation Ordinance (PCO) and the Occupational Deafness Compensation Ordinance (ODCO). These two systems serve different purposes.

Under the individual liability system, all employers are required to insure their liabilities for a specified minimum amount with authorised insurers in the private sector. By contrast, under the collective liability system, compensation is paid to a particular group of eligible claimants, out of a statutory levy imposed on employers of the building, construction & quarrying industries under the PCO and on employees’ compensation insurance premium under the ODCO.

Turning to the question, the proposal to set up a central employees’ compensation fund (central EC fund) was fully debated in this Council in a Motion Debate on 3 November 1993. During the debate, the then Secretary for Education and Manpower explained in great detail why it would not be appropriate to make a fundamental change to the existing system. I do not wish to repeat all the arguments as they have already become a matter of public record. But I would like to reiterate that we did not then and do not now see any justification for replacing the existing privately-run employees compensation insurance market by what would, in effect, be a central bureaucratic monopoly.

15

Having said that, the Government has taken follow-up actions by addressing the key concern behind the motion calling for the establishment of a central EC system, which is the need "to give better protection to industrial accident victims”. What I said earlier that to give better protection to industrial accident victims was part of the motion at that time. Let me now give a brief account of what we have done.

First, we have set up the Occupational Deafness Compensation Scheme - another collective liability system in addition to the Pneumoconiosis Compensation Scheme, to compensate employees who suffer from noise-induced deafness by reason of their employment.

Secondly, we have completed a comprehensive review of industrial safety and are now implementing the recommendations in stages. For example, we have introduced into this Council the factories and Industrial Undertakings (Amendment) Bill which would empower the Commissioner for Labour to issue improvement and suspension notices on safety grounds.

Thirdly, we have taken up the recommendation of the review of industrial safety to engage the insurance industry in promoting safety consciousness among employers and penalising hazardous trades through insurance premium arrangements. In this respect, we have received confirmation from the industry that the insurers have put in place the practice of setting the insurance premia for employees compensation at different levels with due regard to the safety records of individual companies.

* Fourthly, we have made substantial improvements to both the Employees Compensation Ordinance (ECO) and the PCO. For instance, we have revised the maximum levels of compensation under the ECO three times since 1993, and have expanded the scope of compensation to cover more occupational diseases and injuries suffered by an employee while travelling between Hong Kong and his place of work outside Hong Kong. Under the PCO, we have introduced the system of monthly payments in place of the previous lump-sum payments to eligible pneumoconiotics and made the compensation for pain, suffering, and loss of amenities a separate compensation item payable to all pneumoconiotics irrespective of their degree of incapacity.

16

♦ Fifthly, we have streamlined the employees compensation procedures. This has resulted in a reduction in the waiting time for attendance at Assessment Boards (for assessing the degree of permanent incapacity of injured employees) and for Court hearings on employees' compensation cases. We have also simplified the system for determining the compensation amount for permanent incapacity by extending the Certificate System of the Labour Department to cover all injury cases involving permanent incapacity.

In line with our commitment to promoting the safety and health of our working population, we will continue to make improvements to strengthen the protection of workers against work-related injuries as and when appropriate.

End

Agreement on liberalisation of global telecom market ♦ ♦ * ♦ ♦

Following is a question by the lion Sin Chung-kai and a reply by the acting Secretary for Economic Services, Mr Leo Kwan, in the Legislative Council today (Wednesday):

Question:

Regarding the Government's participation in an international conference on the liberalisation of telecommunications markets convened by the World Trade Organisation (WTO) in April this year, will the Government inform this Council:

(a) whether an agreement on the liberalisation of global telecommunications markets has been reached among member states of the WTO at the above conference; if so, what the details of the agreement are;

(b) of the stance taken by the Government on the agreement reached and whether the Government had put forward any proposals at the conference; and

17

(c) given that the exclusive right granted to Hong Kong Telecom (HKT) to operate international telecommunications services will not expire until the year 2006, whether the Government has given consideration to terminating the HKT’s exclusive right earlier, in order to avoid contravening the WTO’s commitment to liberalise the international telecommunications markets by January 1, 1998; if so, what the details are?

Reply:

Mr President,

The first two parts of this question concern the process and outcome of the extended track of negotiations on basic telecommunications conducted under the framework of the World Trade Organisation (WTO) General Agreement on Trade in Services. These negotiations concluded on April 30, 1996 in Geneva.

(a) An agreement was reached on opening up markets for basic telecommunications services to foreign suppliers which will come into effect on January 1, 1998. There is no common liberalisation plan for all participants to follow. Instead each participant submits its own individual commitments; each is bound to the extent of these commitments.

Under the agreement reached, participants in the negotiations will have the flexibility to make final adjustments to their commitments between January 15 and February 15, 1997, following further consultations on a few outstanding issues which arose very late in the negotiations. Participants agreed that these issues needed to be studied more thoroughly. A special group will be formed to carry out such consultations which will commence within 90 days of May 1, 1996 and will complete by February 15, 1997.

(b) We welcome the achievement - partial though it was - of the negotiations. In response to comparable offers made by the major negotiating parties, Hong Kong has offered to open up the market for the following:

local basic telecommunications services - fixed telecommunications network, mobile phones, radio paging, radio mobile data and trunked radio services;

18

international telecommunications services - call-back, selfprovision of external satellite circuits, virtual private networks and mobile satellite services. These international services have been determined as falling outside Hong Kong Telecom International's (HKTI) exclusive rights; and

regulatory principles to promote competitive supply of telecommunications services.

(c) The third part of the question relates to the negotiations and the exclusive right to operate certain international telecommunications services which has been granted to HKTI until September 30, 2006. Hong Kong's offer on basic telecommunications is not in conflict with HKTI's licence. Since we will only be bound to liberalise our basic telecommunications market to the extent of our offer, there will be no conflict with any rule of the WTO in maintaining HKTI's exclusivities to September 30, 2006. Our position regarding HKTI's licence is that we will honour it. We will continue to look out for opportunities to open up for competition those services which fall outside the exclusive right of the licence. We have no plans unilaterally to terminate the licence early.

End

Maintenance of law and order important

*****

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

Question:

A series of violent incidents have occurred in the territory recently. Apart from the riot caused by Vietnamese migrants in the Whitehead Detention Centre, there was the brutal attack on a veteran journalist. In addition, threats were made to certain Members of this Council against the opening of their offices and the placards publicising the opening were criminally damaged. There were also reports that at a District Board meeting, a member openly threatened to beat up Government officials. In this connection, will the Government inform this Council whether measures have been adopted to halt the spread of such a phenomenon and to uphold the morale of law enforcement officers?

19

Reply:

Mr President,

We appreciate the concern of Honourable Member over the incidents mentioned in the question. However, they are separate and isolated incidents and do not represent a spread of violence in the territory. In fact, in the first three months of 1996, the overall crime rate and the violent crime rate both dropped by 8.4% and 10.2% respectively compared to the same period last year.

There is, however, no room for complacency because of these figures. We share the importance placed by the people of Hong Kong on the maintenance of law and order. In line with the community's and this Council's wishes, we have put additional resources in the last two years on increasing front-line Police manpower. In 1995/96, we created 400 posts of Police officers for front-line operational duties, of which 45 were assigned to anti-triad duties. In 1996/97, we have provided funds for creating over 350 posts for front-line operational duties, of which 227 would be devoted to anti-triad duties. As announced to this Council's Security Panel recently following the Whitehead incident, we will also be spending $65 million in improving the security of VM Camps.

Hong Kong remains one of the safest metropolitan cities in the world. We do not tolerate violent acts. We are also determined to uphold law and order. We have over the years been updating our legislation to support the work of the law enforcement agencies. We have deployed more resources, and upgraded their equipments to enable them to do a better job. We will continue to do so. Our law enforcement officers arc well-trained professionals, and are determined to face the challenges ahead. There is no question of their morale suffering as a result of some high profile recent incidents.

End

20 -

Detained children’s rights to obtain legal assistance ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Miriam Lau Kin-yee and a reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

Article 37 of the United Nations Convention on the Rights of the Child provides, inter alia, that States Parties shall ensure that every child deprived of his or her liberty shall have the right to prompt access to legal or other appropriate assistance. In this connection, will the Government inform this Council:

(a) of the number of cases brought before the Juvenile Court for care and protection orders in the past three years and the number of children or juveniles in those cases who were given legal representation; and

(b) in those cases in which no legal representation was given, how many involved the child or juvenile in question being placed in custody at an institution (e.g. Boys’ or Girls' Homes) after appearing before a Magistrate in the Juvenile Court?

Reply:

Mr President,

Under the Protection of Children and Juveniles Ordinance, a child or juvenile is brought before the Juvenile Court for care or protection proceedings when he or she has been or is at risk of being subject to abuse, or has behavioural problems which are beyond parental ability to resolve. Before a care or protection order is made, the child or juvenile concerned can be taken to a place of refuge for his or her protection from further abuse or neglect, while a welfare plan is worked out.

Within 48 hours after a child or juvenile is taken to a place of refuge, an application for a care or protection order in relation to the child or juvenile shall be made to the Juvenile Court. The Juvenile Court has a duty to give due consideration to the interests and welfare of the child or juvenile in question and it has the power to request the Official Solicitor to act for the child or juvenile before a decision is made on his or her case. The Director of Legal Aid, who has been appointed as the first Official Solicitor, will normally provide legal representation for the child or juvenile in such proceedings. Other appropriate assistance such as counselling for the child or juvenile is also made available.

21

Care or protection proceedings are not criminal proceedings, parents often do not feel the need to seek legal representation for their children. In many cases, it is the parents who request that the child be taken into care because the child is out of their control. In the past three years from 1993-94 to 1995-96, out of a total of 5,613 care or protection cases brought before the Juvenile Court, 19 involved legal representation for the child or juvenile concerned. The great majority of care or protection cases were restored to home care.

In 1995-96, of the 1,855 cases where there was no legal representation about 17% or 322 cases involved the child or juvenile in question being placed in institutional care after appearing before the Juvenile Court. We do not have readily available statistics on the number of such cases in 1993-94 and 1994-95.

End

Measures to prevent illegal immigrants enter to commit crime

*****

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

Question:

Regarding the incident which occurred in the early hours on 13 May this’year, in which the police intercepted a group of people in possession of a large quantity of weapons and believed to have entered the territory illegally, will the Government inform this Council:

(a) of the blackspots in the territory used by illegal immigrants landing, and the measures adopted by the police to intercept illegal immigrants landing from such blackspots;

(b) whether vessels registered in China entering Hong Kong waters are required to obtain the prior approval of the relevant departments in the territory; and

(c) of the number of stop-and-search operations in Hong Kong waters conducted by the police on Chinese vessels entering the territory in the past three years, and the number of such vessels found to be involved in illegal activities such as carrying illegal immigrants and smuggling?

22

Reply:

Mr President,

(a) The landing blackspots for illegal immigrants (Ils) currently include the Western seafront, the Sai Kung Peninsula, Lau Fau Shan, Sha Tau Kok Peninsula and the Aberdeen Typhoon Shelter. To tackle the problems of Ils, especially those who come here to commit crimes, the Police do not simply intercept them at landing blackspots. The Police adopt a threepronged approach to tackle the problem: prevention from entry, detection of those who evade border control and combating crime.

(b) Chinese registered vessels entering Hong Kong waters are treated in the same way as other vessels in accordance with established international maritime law. Prior approval from the Government is not required for transit vessels. However, this does not inhibit the right of the Government to stop, search, seize or arrest vessels in the course of normal law enforcement activities. Vessels entering our waters with Hong Kong as destination are required to report to the Marine Department together with submission of the vessel document and cargo manifest upon arrival. They are required to undergo the necessary immigration and customs clearance procedures.

(c) During the period 1993-1995, the Police stopped and searched 19,883, al9,863 and 19,279 Chinese vessels respectively; 400, 448 and 250 vessels, were found to be involved in illegal activities such as smuggling or carrying 1 Is in each of these three years.

End

Home Purchase Loan Scheme applications

*****

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:

Will the Government inform this Council of:

23

the ratio between white and green form applicants who have successfully purchased property under the Home Purchase Loan Scheme (HPLS), as well as the number of such applicants who were former Waiting List applicants and their proportion in the total number of successful applicants under the HPLS, in each of the past five years; and

the ratio between white and green form applicants who have successfully purchased property under the Home Ownership Scheme (HOS), as well as the number of such applicants who were former Waiting List applicants and their proportion in the total number of successful applicants under the HOS, in each of the past five years.

Answer:

Mr President,

The information in respect of successful applicants under the Home Purchase Loan Scheme is set out below:

Year Ratio of green form applicants to white form applicants Number of applicants who were on General Waiting List Proportion of applicants who were on General Waiting List to total

1991-92 56:44 401 38.5%

1992-93 52:48 120 44.6%

1993-94 35:65 116 16.5%

1994-95 40:60 136 15.2%

1995-96 70:30 506 15.0%

24

The information in respect of successful applicants under the Home Ownership Scheme is set out below:

Year Ratio of green form applicants to white form applicants Number of applicants who were on General Waiting Lisi Proportion of applicants who were on General Waiting List to total

1991-92 67:33 4,183 22.2%

1992-93 66:34 4,017 18.7%

1993-94 55:45* 5,517 36.5%

1994-95 67:33 1,424 10.6%

1995-96 67:33 2,265 17.4%

*

In that year, the ratio of green form applicants to white form applicants was 50:50 for two phases of sales and 67:33 for another phase.

End

Outsourcing of data processing operations by banks

*****

Following is a question by the Hon Li Ka-cheung and a written reply by the acting Secretary for Financial Services, Mrs Lessie Wei, in the Legislative Council today (Wednesday):

Question:

It is learnt that some banks in the territory have commissioned the work of their computer departments to professional computer firms and, as a result, the personal data of the customers of these banks have been transferred to the computer firms concerned. As these computer firms are not part of the banking sector, the relevant legislation governing the banking sector cannot therefore apply to these firms. In view of this, will the Government inform this Council whether it will consider requiring these computer firms to obtain a special licence to undertake such work, so as to ensure that the personal data of the customers of the banks concerned are not released to outside organisations, thus safeguarding the interests of the customers?

25

Reply:

The outsourcing of data processing operations by banks is not unusual in other countries and, if it is done in a proper manner, can increase banking efficiency and reduce costs. The Administration does not consider that there is a need to require computer firms performing data processing operations for authorised institutions (Ais) under the Banking Ordinance to obtain a special licence. Upon the commencement of the Personal Data (Privacy) Ordinance 1995, a computer firm employed by an AI for processing the personal data of the Al's customers is prohibited from disclosing such information to a third party for any purpose other than the one for which the data were to be used at the time of the collection of the data by the computer company or a directly related purpose without the prescribed consent of the Al's customers.

The Monetary Authority (MA) also has adequate powers under the Banking Ordinance to regulate such outsourcing activities. Under clause 12 of the Seventh Schedule to the Banking Ordinance, Ais are required to conduct their business with integrity, competence and in a manner not detrimental to the interests of depositors and potential depositors. To comply with this authorisation criteria, Ais which intend to outsource their data, processing operations are expected to discuss their plans with the MA in advance and to satisfy the MA with regard to the relevant systems and controls before they proceed with such plans. In considering such proposals, the MA will take into account the financial soundness and reputation of the proposed contractor and whether there are adequate safeguards to ensure that the outsourcing arrangement will not compromise the integrity and confidentiality of customer information. Typical safeguards include undertakings by the contractor that the company, and its staff, will abide by confidentiality rules; contractual rights of the AI to take action against the contractor in the event of a breach of confidentiality; segregation of the Al's data from that of the contractor and its other clients; and unrestricted access by the Al's internal and external auditors to review the operations of the contractor.

The MA has a power under section 55 of the Banking Ordinance to inspect the books, accounts and transactions of Ais. This power is not limited to inspection on an Al's premises. The MA can exercise this power despite the fact that the AI has outsourced its data processing operations. The AI is expected to give an undertaking that the MA will have unrestricted access to review the operations of its contractor.

26

If the MA considers that, as a result of outsourcing, the AI is carrying on its business in a manner detrimental to the interests of its depositors, potential depositors or creditors, the MA has powers under section 52 of the Banking Ordinance to require the AI to take such action in relation to its affairs and business as he may consider necessary. This could include a direction to the AI to terminate the outsourcing arrangement if the MA is not satisfied with the control measures.

The MA also has powers under section 59(2) of the Banking Ordinance to require Ais which have outsourced data processing to submit reports prepared by their auditors on the adequacy and the operation of the systems and controls for protecting the integrity and confidentiality of customer information. The MA expects external auditors to have unrestricted access to the outsourcing contractor for this purpose.

End

Disposal of toxic wastes ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council whether there were any cases involving foreign countries transporting toxic wastes to the territory for disposal in the past three years; if so, what safety measures were adopted by the departments concerned in the disposal of such wastes?

Answer:

Mr President,

The Environmental Protection Department has not received any application for the import of toxic waste into Hong Kong for disposal in the past three years. The import of such waste into Hong Kong for disposal is subject to control under the Waste Disposal Ordinance, which prohibits such imports unless a permit has been obtained in advance from the Environmental Protection Department. The Environmental Protection Department would not normally grant such a permit. Any disposal that was permitted would need to be carried out in an environmentally sound manner to the satisfaction of the Director of Environmental Protection.

End

27

Medical treatment for chronic patients

*****

Following is a question by the Hon Ambrose Lau Hon-chuen and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

It is learnt that at present, the majority of patients suffering from chronic illnesses have to wait for six to twelve months for a follow-up consultation at public clinics under the management of the Hospital Authority (HA) and the Department of Health (DH). In view of this, will the Government inform this Council:

(a) of the total number of chronically-ill patients attending such clinics for medical consultation in each of the past three years, and the major types of their illnesses;

(b) whether any guidelines have been issued by the HA and DH regarding the waiting time for chronically-ill patients seeking follow-up consultations; if so, whether the current waiting time for such consultations is in line with the standard stipulated in the guidelines; and

(c) given that the territory’s population is ageing and the number of chronically-ill patients may continue to rise, whether the Government will adopt any measures to reduce the waiting time for chronically-ill patients seeking follow-up consultations?

Reply:

Given the lack of a clear definition of "chronic illnesses", the term "chronic patients" has often been used in a general context to refer to those requiring regular medical care on a long-term basis. Some examples of the major illnesses involved are hypertension, diabetes mellitus, chronic lung disease, ischaemic heart disease and renal failure.

All patients, including those commonly referred to by people as "chronic patients", may obtain medical treatment and consultation at public clinics. Specialist clinics run by the Hospital Authority cover a full range of clinical specialties, while those operated by the Department of Health are only designed to cater for general cases.

28

Since we classify patients according to the nature rather than acuteness of their conditions, it is only possible to provide the total number of specialist consultation in the past three years. The relevant figures are 4,699,000 for 1993-94, 5,140,000 for 1994-95 and 5,539,000 for 1995-96 respectively.

Patients attending specialist clinics can be categorised into two main groups : new referrals and follow-up cases. All new referrals are screened by specialised nurses through a triage system to ensure that urgent cases can be treated without delay. For a majority of non-urgent patients, an appointment for medical consultation will be given to them within about 12 weeks.

Other cases requiring follow-up consultation will be given appointments at specified intervals based on individual patient’s needs. Although some unstable patients would require more regular consultation to assess their response to treatment and progress of recovery, many patients can be seen at relatively longer intervals.

With the implementation of the computerised block appointment system and other measures to enhance productivity, we have been able to make significant reduction of the waiting time for specialist consultation despite an average increase in the attendance rate of over 10% per annum during the past three years. A number of refurbishment and redevelopment capital projects are also in the pipeline to improve the physical environment as well as the capacity of our specialist clinics to meet prevailing needs.

Government is still working towards achieving its target to reduce the average waiting time for first appointment at all specialist clinics to five weeks by the year 2000.

End

Computer courses in public secondary schools ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Leung Yiu-chung and a written reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

29

(a) of the amount of funds allocated for providing computer studies courses in the publicly-funded secondary schools in 1995-96, and the average number of computers provided for each secondary school for teaching purposes;

(b) of the objectives in providing such courses, and whether the Education Department (ED) will review these objectives meet the practical needs of secondary school students in computer application in their daily life; and

(c) of the length of time it normally takes for the ED to process an application by a school for the purchase of computer facilities; and how the ED will solve the problem of the approved computer facilities not catching up with the developments in computer technology by the time the schools concerned have obtained approval to purchase such facilities?

Reply:

Mr President,

(a) 386 government, aided and caput schools have joined the Computer

Studies Scheme introduced in 1982. Each participating school will receive 21 sets of computer equipment and relevant software packages for teaching Secondary 1 to 5 computer subjects.

In addition, 125 schools are participating in the Sixth Form Computer Subjects Project which started in 1992. Each participating school will receive 16 to 31 computers and software packages.

In 1995-96, a total of about $8.7 million has been allocated for the purchase of computer equipment and softwares and for curriculum grants to purchase consumable items such as floppy disks, printer ribbons, printer forms and other teaching aids in publicly-funded secondary schools.

(b) There are four computer subjects in secondary schools. They are Secondary I to 3 Computer Literacy, Secondary 4 to 5 Computer Studies, Secondary 6 to 7 AS-Level Computer Applications and A-Level Computer Studies. These subjects aim to enhance students’ knowledge of computer concepts, programming and computer applications.

30

In October 1995, the relevant subject committees of the Curriculum Development Council and the Hong Kong Examinations Authority set up a joint working party to review the full range of computer education syllabuses from Secondary 1 to 7 in order to ensure that they keep up with the changing needs of the 21st century. The working party has proposed to include computer technology developments and applications such as Internet and multimedia technology in the syllabuses; and to encourage the use of information technology and the application of specific software to deal with the day-to-day problems. The target of the working party is to have the draft revised syllabuses ready for public consultation by early 1997.

(c) The Education Department provides computer facilities to support the computer curriculum in secondary schools and processes the applications centrally. It usually takes about 1 to 2 months to complete a tender exercise. The process may be extended to 2 to 3 months for schools requiring room conversion to house the computer facilities. We are not aware of any problem of approved computer facilities not matching up with developments in computer technology by the time the schools have obtained approval to purchase such facilities, particularly as the lead time is relatively short.

End

Communication equipment for ambulance staff ♦ * * * *

Following is a question by the Hon David Li Kwok-po and a written reply by the Secretary for Security. Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

It was reported that the ambulance staff of the Fire Services Department (FSD) who were endeavouring to rescue unconscious passengers in the M I R trains on 6 May 1996 were hamstrung by a lack of walkie-talkies and mobile phones. In view of this, will the Government inform this Council whether it will seek funds for the acquisition of such equipment and, if so. what the estimated total cost is and when such equipment will be available for use by the ambulance staff of the FSD?

31

Reply:

All Fire Services Department ambulances are equipped with radio telephones for communication with the Fire Services Communication Centre (FSCC). For incidents involving multiple casualties, a Mobile Casualty Treatment Centre (MCTC) with portable radio sets will be despatched to the scene. This equipment will be used by the attending ambulance officers. These radio sets are provided only to crew leaders to ensure effective emergency communications and to avoid excessive radio traffic.

In an emergency situation, it is essential that communications are simple, direct and co-ordinated through a single centre, in order to ensure that the emergency response can be well commanded. Mobile phones are not suitable for operational use in these situations because they can provide communications only between individual officers and the FSCC.

The FSD and the MTRC have well-established and practised procedures for conducting rescue operations for various types of emergencies in MTR stations. Ambulance crews should, in the first instance, make use of the telephones available on the platforms in station control rooms, or in the other telephone facilities available from the MTRC. If a situation is of such a scale that centrally-co-ordinated communications are necessary, ambulance crews will use the portable radios provided on MCTC, operating on repeaters for underground work.

We have no plan to acquire additional walkie-talkies and mobile phones. The Fire Services Department will, however, continue to conduct regular reviews on the effectiveness of its communication equipment to ensure that it meets the Department's operational requirements.

End

32

Ventilation inside markets in public housing estates *****

Following is a question by the Hon Law Cheung Kwok 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 of:

(a) the number of cases concerning poor ventilation inside markets in public housing estates which have been discussed by various District Boards in the past three years, and the major causes of poor ventilation in such cases; and

(b) the measures that have been adopted to improve ventilation inside markets in public housing estates and the effects of such measures?

Answer:

Mr President,

Three cases concerning poor ventilation inside markets in public housing estates were discussed by District Boards in the past three years. These markets were designed to be naturally ventilated and the storage of cartons by operators on top of their stalls affected cross ventilation. The use of large refrigerators and airconditioners by operators aggravated this problem.

The Housing Department took remedial measures, including the provision of electric fans, extraction fans and extraction ducts. Where technically feasible, and where the operators concerned were willing to pay the necessary expenses, central air conditioning was installed. These measures improved air circulation, removed offensive odours and lowered indoor temperatures.

The Housing Department has taken steps to improve ventilation in new markets. Privatised markets completed in recent years have been installed with central air-conditioning. From next year onwards, all newly completed markets (whether privatised or under HD management) will be provided with central air-conditioning.

End

33

Remuneration package of HKMA chief

*****

Following is a question by the Hon Emily Lau and a written reply by the acting Secretary for Financial Services , Mrs Lessie Wei, in the Legislative Council today (Wednesday):

Question:

It is learnt that the remuneration package of the Chief Executive of the Hong Kong Monetary Authority (the Chief Executive) in the past year was around $6.5 million - $7 million, which was much higher than that of the Financial Secretary. In this connection, will the Administration inform this Council:

(a) of the basis and justifications for determining the remuneration package of the Chief Executive;

(b) of the authority and mechanism for approving the remuneration package of the Chief Executive; and

(c) how it ensures that the remuneration package of the Chief Executive is determined in an appropriate manner?

Reply:

It is not appropriate to draw comparisons between remuneration packages of Government employees on civil service terms with those on Hong Kong Monetary Authority's (HKMA) terms and conditions of employment as different approaches to remuneration are adopted. The HKMA adopts a total package approach for its remuneration. In other words, no housing benefit, pension, education allowances, passage allowances, etc are payable.

(a) Our policy is that HKMA's remuneration packages should be in line with the market in which it competes for human resources and should be able to attract and retain staff with the appropriate calibre, experience and expertise capable of performing the functions of the HKMA in a manner that commands the confidence of the people of Hong Kong and the international financial community. This applies to the Chief Executive of the HKMA and his staff.

34

(b) The HKMA’s remuneration terms, irrespective of ranks, are determined by reference to the prevailing market rates. Pay level and pay trend surveys are conducted by an independent consultant every year to establish whether pay packages and their intended annual adjustments are in line with the market. On the basis of the results of these surveys, and having regard to performance, the Financial Secretary, on the advice of the Exchange Fund Advisory Committee (EFAC), determines the remuneration packages of individual senior officers including the Chief Executive. Under delegated authority, the Chief Executive in turn determines the remuneration packages of other officers, subject to the overall budget approved by the Financial Secretary on the advice of the EFAC.

(c) The Administration considers that the mechanism for determining the remuneration packages for HKMA staff to be appropriate, having regard to the circumstances described above. Adequate control is exercised by the Financial Secretary on the advice of the EFAC, whose members are familiar with the market practice regarding pay package determination and adjustment.

End

Remuneration package of HKMA staff

*****

Following is a question by the Hon Sin Chung-kai and a written reply by the acting Secretary for Financial Services, Mrs Lessie Wei. in the Legislative Council today (Wednesday):

Question:

According to the 1995 Annual Report of the Hong Kong Monetary Authority (HKMA), the expenses on staff costs increased from $196 million in 1994 to $250 million in 1995. In this connection, will the Government inform this Council of:

(a) the comparisons between the remuneration package of staff at different levels of the directorate of the HKMA and that of their counterparts in the civil service, in each of the years from 1993 to 1995;

- 35 -

(b) the mechanism adopted by the HKMA for determining the pay adjustment for its staff; and

(c) the specific measures Government has put in place to monitor the staff costs of the HKMA?

Reply:

To put the staff costs of the Hong Kong Monetary Authority (HKMA) in perspective, the increase in 1995 was mainly attributable to the increase in staff members to undertake a number of new initiatives. Only 9.8% of the increase in 1995 was due to pay adjustment.

(a) As there are no HKMA counterparts in the civil service, it is not appropriate to draw comparisons between the remuneration packages of HKMA staff with those of the civil service. Allowing HKMA to have its own terms and conditions of employment is to make sure that it can compete with the private sector for the necessary expertise in financial markets.

(b) The Financial Secretary, on the advice of the Exchange Fund Advisory Committee (EFAC), determines the overall pay adjustment for the HKMA as a whole by reference to the result of a pay trend survey conducted by an independent consultant. Adjustments for individual officers are totally performance related.

(c) The Financial Secretary, on the advice of the EFAC, scrutinises and approves the budget of the HKMA each year. Any spending exceeding the budget has to be approved separately by the Financial Secretary. Monthly reports on the budget are made to EFAC.

End

36

Marine accidents in Hong Kong ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Zachary Wong and a written reply by the acting Secretary for Economic Services, Mr Leo Kwan, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) whether cargo vessels and passenger liners entering Hong Kong waters are currently required to take out third party insurance to ensure that vessels which have caused accidents in Hong Kong waters resulting in casualties and property losses pay compensation to the victims concerned;

(b) if the answer to part (a) is in the negative, which party would be held responsible for paying compensation in the event of the occurrence of such accidents; and if the vessels causing the accidents are not registered in Hong Kong, whether the Marine Department can prosecute the vessels where they have contravened certain regulations; and

(c) of the number of accidents which have occurred in Hong Kong waters in the past three years involving locally-registered vessels being hit by vessels not registered in Hong Kong, the total amount of losses incurred by such accidents, and the actions which have been taken by the Marine Department concerning these accidents?

Reply:

(a) The Marine Department requires ocean going vessels entering Hong Kong waters to comply with Conventions made under the auspices of the International Maritime Organisation (IMO), of which Hong Kong is an Associate Member. Currently the IMO Conventions require compulsory liability insurance on tankers carrying more than 2,000 tons of oil. There is no mandatory requirement for ships other than this to carry third party insurance. It is however a matter of sound business sense for shipowners to take out such insurance and a recent survey of ocean going vessels indicates that 95% of such vessels carry third party insurance.

37

(b) If a vessel, foreign or local registered, is involved in a collision causing casualties and property losses to third parties, the owner of such vessel, if at fault, is liable to damages through civil litigation.

Marine Department investigates every collision case within Hong Kong waters. Where a breach of the laws of Hong Kong is suspected, the owner of the vessel, the master and any person otherwise responsible for the vessel is each liable for prosecution under Section 10 of the Shipping and Port Control Ordinance (Cap. 313).

(c) The numbers of collisions involving locally licensed vessels and vessels not registered in Hong Kong over the past 3 years were:

1993 - 57 1994-48 1995-79

Most of these accidents were minor incidents. Among these accidents, only 1, 4 and 1 incidents have resulted in injuries or fatalities in 1993, 94 and 95 respectively. Each case is examined by the Marine Department's Casualty Investigation Unit to find out the causes and the lessons to be learned. Prosecution action will be taken if necessary. In 1995, 113 successful prosecutions were taken for breaches of navigation regulations such as exceeding speed limits, proceeding on the wrong side or obstructing shipping fairways. We however do not have the information relating to the total amount of losses incurred by such accidents as the cost of repairs and apportionment of damage claims between the owners of vessels involved in collisions is a matter of civil litigation.

End

38

Computer studies for primary students * * * * *

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

Question:

Will the Government inform this Council whether computer studies is one of the subjects in the curriculum of primary schools in the territory; if so, whether it is a compulsory subject; if not, whether the Education Department will introduce computer studies into the curriculum of primary schools and make it a compulsory subject?

Reply:

Mr President,

Government is fully aware of the importance of promoting information technology in schools. Since the introduction of the Computer Studies Scheme in the secondary sector in 1982, a full range of computer subjects is being offered in secondary schools; and Government provides support in the form of computer equipment and software, in-service teacher training and curriculum grants to schools.

The subject of Computer Studies is not included in the current primary curriculum. This is because the study of the subject requires certain pre-requisites, such as a reasonable level of mathematical concepts and command of English. Hence, we consider the present arrangement of introducing computer studies at Secondary One level and above appropriate.

However, it should be noted that an increasing number of schools have included computer classes as part of their extra-curricular activities. Government welcomes this initiative as it can expose students to computer technology at an early stage and better prepare them for the study of the subject at secondary level.

End

39

Statistics of liquidated limited companies ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Chim Pui-chung and a written reply by the acting Secretary for Financial Services, Mrs Lessie Wei, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a) of the number of limited companies registered in Hong Kong which went into liquidation in the past three years, (including cases of liquidation initiated by the shareholders and those ordered by the court), and the number of such companies of which the Official Receiver acted as their liquidator; and

(b) according to the records of the Official Receiver's Office, of the longest period of time taken for a limited company to go through the entire liquidation process and the reasons for the time taken?

Reply:

Mr President,

The number of limited companies registered in Hong Kong which went into liquidation in 1993, 1994 and 1995 are shown below:

1993 1224 122s

(1) Members' Voluntary winding-up 2,775 2,515 3,037

(2) Creditors' Voluntary winding-up 114 131 124

(3) Compulsory winding-up before Court 408 426 481

Total: 3,297 3,072 3,642

The Official Receiver has acted as the Liquidator of 399 limited companies in compulsory liquidations in 1993, 420 in 1994 and 471 in 1995. The Official Receiver is not involved in voluntary liquidations.

40

According to the records of the Official Receiver's Office, the longest time taken to complete a compulsory liquidation is 24'/2 years. A winding up order against the company concerned was made in November 1971 and an order granting the Official Receiver's release from the liquidatorship was made in May 1996. The major exceptional reasons for the time taken for this particular case are as follows:

(a) the case involved a complicated legal dispute, relating to the unsettled assignment of 47 flats, between the company concerned and the petitioning creditors, who were directors of the company's joint-venture partner;

(b) the need to obtain funding to sue the joint-venture partner for specific performance in respect of the assignment of the properties and the lengthy litigation in the High Court, the Court of Appeal and the Privy Council before the appeal of the joint-venture partner was ultimately dismissed;

(c) the deaths of the three directors of the joint-venture partner causing delays in the clarification of the joint-venture's accounts, the settlement of taxed costs of the Privy Council appeal and the disposal of the unsold flats of the joint venture; and

(d) the need to wind up the joint-venture partner to clear the unsettled issues as set out in (c) above.

End

41

Housing benefits for civil servants and teaching staff ♦ ♦ ♦ ♦ ♦

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Civil Service, Mr W K Lam, in the Legislative Council today (Wednesday):

Question:

According to the results of the 1994/95 Household Expenditure Survey (HES) conducted jointly by the Census and Statistics Department and the Hang Seng Bank, the proportion of expenditure on housing had increased by four to five percentage points, as compared to the results of the HES conducted in 1989/90. In respect of the relatively low expenditure households, the proportion had increased from 21% to 25%; for the medium expenditure households, from 24% to 28%; and for the relatively high expenditure households, from 29% to 34%. By contrast, for many years senior civil servants and teaching staff of tertiary institutions who live in staff quarters provided by the Government and the tertiary institutions are only required to pay 7.5% of their monthly salary as rental payment. In this connection, will the Government inform this Council:

(a) of the respective numbers of civil servants and teaching staff of tertiary institutions who pay 7.5% of their salary as rental payment, and the grades to which they belong;

(b) the year in which the 7.5% rate was formulated and the basis for it;

(c) why the above rate has remained unchanged despite the fact that the

housing benefits for civil servants have been changed several times over the year; and

(d) whether there is any plan to review the 7.5% rate mentioned above?

Reply:

Mr President.

(a) 1,725 Civil servants residing in non-departmental quarters, and 740

officers receiving the Private Tenancy Allowance pay 7.5% of their salary as rent. All officers were employed before 1 October 1990. They are in grades with salary points above MPS point 34 or equivalent.

42

As for the tertiary institutions, there are 1,770 teaching staff residing in quarters and 2,004 receiving a Private Tenancy Allowance who pay this level of rent.

(b) The payment of rent as a proportion of salary came into effect on 1 April 1971. Prior to that date rent paid by civil servants living in NDQs was set on the basis of salary "platforms" corresponding to different grades of quarters. This system emerged from the recommendations of the 1947 Salaries commission. In 1971, the Salaries Commission considered that in order to simplify administration of rent payments and to rectify anomalies inherent in such a "platform rent" system, rent should be assessed as a percentage of salary not exceeding the average of the percentage represented by the mid-point of each of the platforms. By reference to the then prevailing rent platforms (Appendix), the percentage recommended was 7.5% for quarters of G grade and above (and 5.0% for quarters below G grade). These arrangements were implemented with effect from 1 April 1971. The percentage of deduction has no direct relationship to average expenditure on housing incurred by the general public.

(c) The provision of civil service housing benefits was reviewed in 1989. The result was the introduction of pew forms of housing benefits. Civil servants joining the service on or after 1 October 1990 are only eligible for these new benefits, i.e., the Home Financing Scheme for staff on or above point 34 of the Master Pay Scale or equivalent, or the Home Purchase Scheme if they serve on a lower salary point. Staff appointed on overseas contract terms receive an Accommodation Allowance. Those who joined the service before the cut-off date were given the option to join the new Schemes.

The provision of NDQs and the PTA has ceased for staff employed after 1 October 1990, and is a declining benefit. For entitled staff who joined before that date, however, they remain a condition of service : the provision of non-departmental quarters with rent deduction of 7.5% of salary is stipulated in the Memoranda on Conditions of Service which cannot be varied unilaterally by the government.

(d) There is no plan to review the present percentage of rent deduction for quarters.


- 43 -

Appendix

Grading and Salary Platform of Quarters in 1971

Percentage of Salary

Salary Range MidPoint Grade of Quarter Rent per month Lowest Point Mid Point Highest Point

Over 10,300 11,800 AA 668 6.5% 5.7% 5%

6,351-10,300 8,000 A 553 8.7% 6.9% 5.4%

5,223 - 6,350 5,661 B 472 9% 8.3% 7.6%

4,564 - 5,222 4,893 C 384 8.4% 7.9% 7.4%

3,904 - 4,563 4,233 CD 336 8.6% 7.9% 7.4%

3,019-3,903 3,461 D 260 8.6% 7.5% 6.7%

2,435 -3,018 2,726 E 201 8.3% 7.4% 6.7%

2,088 - 2,434 2,261 F 172 8.2% 7.6% 7.1%

1,514-2.087 1,800 G 130 8.6% 7.2% 6.2%

1,232- 1,513 1,372 H 83 6.7% 6.1% 5.5%

766- 1.231 998 I 53 6.9% 5.3% 4.3%

576 - 765 670 1J 42 7.3% 6.3% 5.5%

409 - 575 492 J 27 6.6% 5.5% 4.7%

395 - 408 401 K 20 5.1% 5% 4.9%

Under 395 L 15 3.8% 3.8%

End

44

Workmen compensation ordered by Labour Tribunal *****

Following is a question by the Hon Leung Yiu-chung and a written reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Legislative Council today (Wednesday):

Question:

It is learnt that recently many employers who were ordered by the Labour Tribunal to pay compensation to their employees have failed to pay the amounts of compensation to the employees concerned. In view of this, will the Government inform this Council:

(a) of the total number of cases in the past three years involving employers defaulting on payment of compensation to their employees as ordered by the Labour Tribunal;

(b) whether, in view of the execution fee amounting to some $4,000 payable by an employee when applying to the District Court to sequestrate the office or factory of the defaulting employer, the Government will consider reducing such fee in order to lessen the burden on the employee concerned in recovering the arrears of compensation from his employer; and

(c) whether it will consider formulating measures to enable employees to obtain arrears of compensation from their employers within a stipulated period of time?

Reply:

Mr President,

Under Section 38 of the Labour Tribunal Ordinance, a final award of the Labour Tribunal (which includes the award of compensation to the employee by the employer) may be registered in the District Court, and will become for all purposes a judgement of the District Court which may be enforced accordingly, notwithstanding that the amount of such award is beyond the jurisdiction of the District Court.

T.

45

As regards part (a) of the question, the Government has no statistics specifically on the number of employees who fail to recover from their employers the amount awarded to them by the Labour Tribunal. The only statistics available are the total number of judgement creditors (comprising both employers and employees) who are issued with certificates of award to enable them to register their awards in the District Court with a view to enforcing them. The number of Certificates of Award issued in the past three years are as follows:

Year Certificates of Award issued

1993 1994 1995 313 447 584

Although no breakdown is available, it is likely that most of these certificates are issued to the employees.

As regards part (b) of the question, the fees for the enforcement of an award against a judgement debtor are prescribed under the District Court Civil Procedure (Fees) Rules. To enforce an award, the claimant has to commence a Miscellaneous Proceeding in the District Court at a filing fee of $630. If the claimant decides to apply for the execution of a writ fi. fa. to seize and sell the personal goods and chattels belonging to the employer, he has to pay a deposit for security guard fees ($2,800 for urban area and $3,200 for rural area) to cover the cost of watchman ($330 per day) and the transportation expenses incurred. The deposit will be refunded if the watchman is eventually not required.

The existing fees are inadequate to cover the Government's cost of providing the above services. We therefore do not consider it appropriate to reduce the fees. Nonetheless, all the charges will eventually be borne by the defendant i.e. the employer or judgement debtor, unless the enforcement of the award is not successful.

As regards part (c) of the question, the Government has put in place a number of channels through which an employee who fails to receive an award made in his favour by the Labour Tribunal can seek to recover such payment.

If the employer concerned has become insolvent, the employee can approach the Labour Relations Service of the Labour Department for assistance. The Labour Department will refer the employee to the Legal Aid Department for assistance in initiating winding-up or bankruptcy proceedings against the employer and to apply for ex-gratia payment from the Protection of Wages on Insolvency Fund. An employee will normally receive payment from the Fund within one month after the filing of the winding-up or bankruptcy petition, or after the Legal Aid Department recommends payment without a petition.

t

- 46 -

If the employer concerned is not insolvent, the employee can approach the Legal Aid Department for assistance in registering the award in the District Court as a judgement and then seek to enforce this judgement through the various means under the existing legal system. These enforcement instruments include the execution of a 'writ fi. fa.' as mentioned above, a 'charging order' to recover the award from the proceeds of sale when the employer sells the property, a 'garnishee order' requiring the bankers or debtors of the employer to pay the bank deposits or debts to the employee, or filing a petition for bankruptcy or winding up of the employer at the High Court. The time taken under these procedures varies from two to five months.

As the circumstances surrounding the employer's default payment of compensation to the employee and the legal procedures involved differ from case to case, it is impracticable to stipulate an across-the-board time limit within which any award payment should be settled.

End

DAILY INFORMATION BULLETIN

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

Thursday, June 6,1996

Contents EagtdSth

Special team to investigate Kwai Chung industrial accident............. 1

Governor's statement on Kwai Chung accident............................ 1

Statement by Secretary for Works on Kwai Chung accident................ 2

Statement by Director of NAPCO on Kwai Chung accident.................. 2

No cause for undue alarm over slope situation.......................... 3

List of schools served with Dangerous Hillside Order................... 4

Chief Secretary hails HK's friends in US............................... 5

Civil service crucial to Hong Kong's success........................... 6

HK's debt market a rising star of Asia Pacific Region: FS.............. 7

Red light camera system in LRT area.................................... 9

Patents Bill to protect inventions..................................... 10

/New title....

Contents

Page No.

New title for Recreation and Culture Branch............................. 12

ICCPR supplementary report made public.................................. 12

Views on special education report sought................................ 13

External investments in non-manufacturing undertakings.................. 14

Pamphlet on Chinese medicine published.................................. 15

CD ROM to publicise Sex Discrimination Ordinance........................ 16

Crown rents due on June 24.............................................. 17

Grading of beach water quality.......................................... 20

Hong Kong Monetary Authority money market operations.................... 23

Special team to investigate Kwai Chung industrial accident ♦ ♦ ♦ ♦ ♦

The Labour Department has set up a special team headed by a Deputy Chief Factory Inspector to investigate the fatal industrial accident occurred in Kwai Chung this (Thursday) evening.

The accident took place at around 6 pm when a metal working platform attached to a concrete pillar at an Airport Core Programme site in Wing Shun Street collapsed. Six workers died as a result.

The acting Commissioner for Labour, Mr Alfred Chan, who went to the scene, has expressed enormous concerns about the accident. He said his department would definitely take prosecution action against the offender if there were sufficient evidence.

Mr Chan later met relatives of the deceased workers at Yan Chai Hospital and advised them on matters relating to employees’ compensation.

Arrangements have been made for them to approach the Labour Department’s Employees’ Compensation Division at Canton Road Government Offices at 10 am tomorrow (Friday).

The department will also make arrangements for the contractors concerned to meet the relatives there to discuss compensation matters.

End

Governor's statement on Kwai Chung accident

* * * * ♦

<1

The Governor, the Right Honourable Christopher Patten, issued the following statement today (Thursday):

"I was shocked by the news of the terrible accident on a construction site at Kwai Chung today which claimed the lives of six people. On behalf of the community, I would like to offer my condolences to the families and friends of the victims. Industrial accidents such as this are a cause of great concern. I have asked for an urgent report from the Commissioner for Labour."

A

- 2 -

Statement by Secretary for Works on Kwai Chung accident ♦ ♦ ♦ ♦ ♦

The Secretary for Works, Mr H S Kwong, expressed his deep concern about the tragic accident at an airport railway construction site that caused the death of six people today (Thursday).

Mr Kwong said: " I have discussed the matter with the Director of New Airport Projects Co-ordination Office and we would follow it up with the MTRC and Labour Department which are carrying out separate investigations into the accident.

"The Works Branch will work jointly with the Education and Manpower Branch to find out what lessons we could learn from this tragedy in order to improve worksite safety."

Mr Kwong extended his condolences to the families of the six people killed in the accident.

End

•j; _

Statement by Director of NAPCO on Kwai Chung accident ♦ * ♦ ♦ ♦

The Director of New Airport Projects Co-ordination Office, Mr Billy Lam, tonight (Thursday) offered condolences to the families of the workers who died on contract 510 Rambler Channel Bridge.

After visiting the scene, Mr Lam said this was a very serious accident in the Airport Core Programme and he was very saddened by it.

End

3

No cause for undue alarm over slope situation

♦ ♦ ♦ ♦ ♦

Parents of students of the 19 schools which have been either issued with Dangerous Hillside Order or are near substandard public slopes in the Landslip Preventive Measures Programme should not be alarmed.

Speaking to the media today (Thursday), the Director of Education, Mrs Helen C P Lai Yu, said: "There is no cause for undue alarm. Government including the Education Department has been monitoring the situation closely.

"In fact, earlier we had issued reminders to schools on the need for regular slope inspection, timely maintenance and precautionary measures. And we are doing more.

"We have distributed a layman’s guide to slope maintenance and an advisory note on buried drains affecting slopes.

"We are examining existing slope safety guidelines to make them clearer and more comprehensive.

"We are reissuing a letter we recently sent to the 19 schools concerned to give them further advice on special arrangements to ensure the safety of students and staff."

"We are advising school heads to fence off the affected areas as advised by the professionals or consultants appointed for the project. Warning notices should also be posted at conspicuous positions on site to keep people away from risk."

Four of the 19 schools have completed the remedial works to the slopes. Of the remaining 15, investigation or remedial works are underway.

"Our aim is to carry out the works as quickly as possible," said Mrs Yu.

She said school heads had been advised in an Administration Circular recently that if local weather, road, slope, traffic conditions warrant the closure of a particular school and a general announcement had not been made by the Director of Education, a school head may close the school at his discretion.

"We are reminding school heads to prepare a contingency plan in consultation with authorised persons or consultants and to inform parents of arrangements", she added.

End

4

List of schools served with Dangerous Hillside Order

♦ ♦ ♦ ♦ ♦

In response to media enquiries, a government spokesman said today (Thursday) that the following 14 schools on private land have been served with the Dangerous Hillside Order issued under Section 27A of the Building Ordinance:

* St Louis School

* St Paul’s Co-educational College

* TWGH’s Lee Ching Dea Memorial College

* Wah Yan College, Hong Kong

* The True Light Middle School of Hong Kong

* Wah Yan College, Kowloon

* Diocesan Boys’ School

* True Light Girls’ College

* St Clare's Girls’ School

* The Building Contractors’ Association School

* SKH Stanley Village Primary School

Po Leung Kuk Perching Tsang Primary School

* St Basil’s School

* Kiangsu and Chekiang Primary School

Five other schools are being affected by three substandard public slopes being upgraded under the Landslip Preventive Measures Programme. They are:

Cognitio College

Man Kiu Association Primary School Hong Kong Taoist Association School FDBWA Yan Kow School

SKH St John’s Primary School

End

5

Chief Secretary hails HK’s friends in US *****

The Chief Secretary, Mrs Anson Chan, on Wednesday (New York time) praised Hong Kong's many friends in the United States.

"Everywhere I go in the United States, I am delighted to find a strong interest in Hong Kong," Mrs Chan said during a luncheon address to about 500 business executives, academics, and members of the media as she continued her programme in New York City as part of the Hong Kong-USA promotion.

"Hong Kong is fortunate to have such good friends overseas," the Chief Secretary said in her speech given at the business luncheon organised by the Hong Kong Economic and Trade Office and the Hong Kong Trade Development Council.

"People around the world, in particular in North America, do see Hong Kong's success as something in which they do have an interest. The American interest in Hong Kong is very extensive," she said.

Mrs Chan told the many business executives attending the day-long conference to use Hong Kong as the gateway to do business with the rest of Asia.

The Chief Secretary's media activities included top-level meetings with the editorial board of the influential New York Times and a breakfast meeting with the Business Week magazine, as well as a meeting with senior editors of Time magazine.

Following her activities at the promotion, Mrs Chan officiated at the ceremony to mark the Hong Kong Wonder's Never Cease exhibition at Manhattan's South Street Seaport.

In the evening, Mrs Chan travelled to Dallas, Texas, for the next leg of the three-city promotion. The promotion concludes in Los Angeles.

End

6

Civil service crucial to Hong Kong's success

*****

The Chief Secretary, Mrs Anson Chan, said the clean, fair and business-friendly government culture together with the loyalty of the civil service to Hong Kong is the foundation of the territory's success and the real basis for optimism about its future.

Speaking at the business luncheon in New York on Wednesday (New York time), Mrs Chan said she and her civil service colleagues were 100 per cent determined that this government culture would not change.

She said the civil service was crucial to Hong Kong's success now and in the future.

"It is the main reason why we have built one of the world's richest societies in a place with no natural resources.

"We do not interfere with business. You can compete in Hong Kong on equal terms with everyone else, whether you are American, Chinese, British or Greek.

"Our regulations are simply and fairly applied. We do not take bribes. And we do not tilt the table for political or for any other ulterior reasons," she said.

She said none of the work Hong Kong had done since 1984, the signing of the Sino-British Joint Declaration, to secure its future would matter much if that government culture changed.

Responding to recent press reports about civil service loyalty, the Chief Secretary said civil servants were working for Hong Kong and would remain loyal to Hong Kong.

"Chinese leaders fully accept this and have confirmed that they expect Hong Kong civil servants to remain dedicated to serving the people of Hong Kong," she said.

"At the same time we consider ourselves to be Chinese. I am quite typical of my civil service colleagues in being proud to be Chinese and in wanting to contribute to China's emergence as a vibrant, modem nation.

"I am equally typical in being fiercely loyal to Hong Kong and to the Hong Kong culture, which has provided me and my family with freedom and opportunity."

Freedom and opportunity were not things which, once attained, can be quietly extinguished, she said.

7

"Those of us who hope to remain in public service in Hong Kong - and Vice Premier Qian Qi-chen said recently that he hoped all civil servants would do so - will remain true to the values and the culture of the place that has given us so much," said Mrs Chan.

The Chief Secretary said Hong Kong had been practising autonomy for generations.

"Hong Kong people are running Hong Kong and will be running Hong Kong after 1997," she said.

"We value the place we have built under the British umbrella and, as Chinese, we are determined that it should continue to thrive under the Chinese umbrella."

Mrs Chan said Hong Kong people would face up to the problems of the transition by remaining true to themselves.

"With goodwill, with trust, and with recognition of the enormous interests at stake, I believe that Hong Kong will indeed continue to thrive," said the Chief Secretary.

End

HK's debt market a rising star of Asia Pacific Region: FS ♦ * ♦ ♦ ♦

The Financial Secretary, Mr Donald Tsang, said the Government would strive to work closely with the private sector in developing a world-class market infrastructure for Hong Kong's debt market.

Speaking at the Annual Dinner of Financial Executives Institute (HK) Ltd this (Thursday) evening, Mr Tsang said the Government's philosophy that private sector initiatives should remain the guiding force for the development of the debt market would continue.

"This is the best way to ensure an attractive investment environment for Hong Kong well in the 21st century," he said.

Mr Tsang noted that Hong Kong's thriving debt market had built up within a relatively short period of time a critical mass for further development.

8

Describing Hong Kong’s debt market as a rising star of the Asia Pacific capital markets, Mr Tsang said the market had seen very rapid growth and would continue to do so.

"The expansion has been phenomenal. From a very low base of about $27 billion at the end of 1989, the size of the Hong Kong dollar debt market increased to $214 billion at the end of March 1996, of which $154 billion were private sector debt issues," he said.

He said the growth of Hong Kong's debt market had so far thrived largely on private sector initiatives, although the Government did take a very active role in facilitating such initiatives, including the launch of the Exchange Fund Bills and Notes Programmes in 1990.

"We have also encouraged multilateral agencies with good credit ratings to tap the local debt market. We grant them profits tax exemption on the Hong Kong dollar papers they issue.

"To encourage the issue of quality long-term debt securities in Hong Kong, I announced in my last Budget the introduction of a concessionary tax rate equal to 50 per cent of the standard profits tax rate to the interest income and trading profits derived from qualified debt instruments issued in Hong Kong," said Mr Tsang.

He said two further new government initiatives - the Mandatory Provident Fund (MPF) and the proposed Mortgage Corporation - would immensely benefit Hong Kong's debt market despite their different primary objects.

The MPF system would cover more than two million people in the workforce and was expected to generate a significant increase to the retirement reserves, he said.

"This large pool of reserves will filter into demand for debt and other financial instruments. The estimated annual contributions under the System will amount to about HK$30 -40 billion," he added.

He said assuming that the retirement scheme investments adopt a balanced portfolio between equities and bonds, the introduction of the MPF System would boost the development of both the equity and bond markets.

Mr Tsang said the proposed Mortgage Corporation would stimulate market development by providing high quality debt paper for investments and widening the range of financial products being offered, including unsecured paper and mortgaged-backed securities (MBS).

9

He expected that the Corporation would help promote the standardisation of MBS products, encourage the issue and trading of MBS in Hong Kong, and boost the development of Hong Kong’s secondary mortgage market.

"With the MPF System and the Mortgage Corporation in the pipeline, in the domestic scene, Hong Kong's debt market is geared up to further expansion in the coming years," Mr Tsang said.

Mr Tsang said in the regional setting, Hong Kong is also well placed to act as the centre for debt financing services for the region's huge infrastructure work programmes.

The Asian Development Bank and the World Bank have both estimated that the region's infrastructural investment needs will be around US$1.5 trillion to US$2.5 trillion in the years up to 2000.

China alone is estimated to account for one-third of this amount.

"With the clustering of financial institutions, excellent market infrastructure, advanced telecommunications, sound legal system, accounting and logistical support, level playing field and high integrity of our regulatory system, Hong Kong can certainly play an important role in arranging such debt issues.

"In particular, we will certainly be able to carve a niche in arranging for China's debt issues," Mr Tsang said.

End

Red light camera system in LRT area *****

The Transport Department has installed red light camera systems to crack down on red light jumping at signalised road junctions along the Light Rail Transit Area.

The system includes a camera unit, loop detectors, sensors and a control unit.

The camera is mounted on a pole overlooking the signalised road junction and the signal sensors are linked with the traffic light signal aspect.

10

Cameras are being installed at 13 signalised road junctions in Tuen Mun, Yuen Long and Tin Shui Wai where red light jumping is a problem, according to the engineer of Road Safety and Standards Division of Transport Department, Mr Wong Kam-tong.

The first two locations to install the system are at the road junction of Tsing Lun Road and Fu Tei Roundabout and the junction of Tsun Wen Road, Tai Fong Street and Tsing Chung Koon Road. The systems in other locations can fully be implemented in September.

Mr Wong said: "The red light camera system will reduce red light violations and enhance road safety in Light Rail Transit Area.

"A vehicle which violates the red light signal will be detected and photographs will be taken. The photographs will show the offending vehicle and the red signal light aspect.

"The licence plate number of the offending vehicle will be clearly shown in the photographs. As a result, the photographs will provide a clear evidence for the police to prosecute the red light runners."

Mr Wong reminds the public that red light jumping is a serious offence which carries a penalty of three demerit points.

The maximum penalty for first conviction is a fine of $5,000 and three months' imprisonment. The maximum fine is $10,000 and six months' imprisonment for the second or subsequent convictions.

End

Patents Bill to protect inventions *****

The Patents Bill, which establishes an independent patent system in Hong Kong for the protection of inventions in line with international standards, will be gazetted tomorrow (Friday).

A spokesman for the Trade and Industry Branch said: "The Patents Bill provides for the grant of independent patents in Hong Kong based on the registration of a patent granted by the United Kingdom Patent Office, the European Patent Office designating the United Kingdom, or the Chinese Patent Office.

11

"It also provides for the grant of short-term patents. This will give a new type of protection in Hong Kong for inventions with a short-term commercial life.

"It sets out the procedures for obtaining and maintaining patents and short-term patents in Hong Kong, the rights given to the owners, and provisions for enforcement.

"A patent protects technical innovation. A patent system encourages new technology by granting the inventor a patent for his invention which gives him the right to exploit his invention for a set term. An inventor in exchange is required to make his invention public.

"The disclosure of this new technology provides a major source of technical information to inventors, businessmen and other users.

"A draft Patents Bill has been issued to parties concerned in the industrial, professional and academic fields during a consultation exercise from February to March 1996. We have as far as possible incorporated the comments received in this Bill.

"At present, there is no original grant of patents in Hong Kong. We register in Hong Kong United Kingdom patents and European patents designating the United Kingdom.

"A local patent law needs to be enacted before July 1, 1997 because the existing patent registration law is dependent on United Kingdom patent law.

"The Patents Bill largely follows the recommendations made by the Patents Steering Committee in its report issued for consultation in May 1993. The basis for the Bill and the new independent patent system were agreed in the Sino-British Joint Liaison Group's 34th Plenary Meeting in November 1995.

"The Bill will be introduced into the Legislative Council on June 26 in order to ensure that the necessary patents legislative and administrative system can be put into place before July 1, 1997."

End

12

New title for Recreation and Culture Branch *****

The Recreation and Culture Branch will shortly operate under a new title to reflect more accurately its policy responsibilities.

With effect from June 8, the English title of the Branch will be changed to Broadcasting, Culture and Sport Branch (BCSB). At the same time, the Secretary for Recreation and Culture will be retitled as Secretary for Broadcasting, Culture and Sport (SBCS).

The Chinese titles of the Branch and the Secretary, which already refer to broadcasting, will remain unchanged.

A spokesman for the Branch said the word "sport" was a clearer and more accurate description of the Branch's responsibilities in this area than the current "recreation".

End

ICCPR supplementary report made public

*****

The United Kingdom government's supplementary report on Hong Kong under the International Covenant on Civil and Political Rights (ICCPR) is made public today (Thursday).

The report was requested by the United Nations Human Rights Committee (HRC) when it examined the fourth report on Hong Kong last October.

"The report covers issues of concern to the HRC as well as new developments since last October. It provides an up to the minute assessment of the protection of human rights in Hong Kong," said a government spokesman.

"Topics of concern to the HRC covered in the report include the investigation of complaints against the Police, the treatment of Vietnamese migrants, the electoral system, anti-discrimination legislation and the submission of reports to the UN after 1997.

"The discussion of new developments deals with such issues as the Bill of Rights Ordinance, the provisional legislature and right of abode in Hong Kong."

13

HRC will examine the report during its Autumn session from October 21 to November 8. A Hong Kong team will attend as part of the UK delegation.

Free copies of the report are now available at the Marketing Office of the Information Services Department, 17th floor, Siu On Centre, 176-192 Lockhart Road, Wan Chai.

End

Views on special education report sought ♦ ♦ ♦ ♦ ♦

School sponsors, serving school principals and teachers, practitioners in special education sector and related fields, and members of the public are invited to give views and suggestions on a newly released report on the review of local special education.

The Report of the Sub-committee on Special Education is prepared by the Board of Education Sub-committee on Special Education. It recommends a package of comprehensive measures to improve special education in the territory.

English copies of the report and its executive summary (English and Chinese versions) are available for collection at the Education Department's Reception Counter on tenth floor. Wu Chung House, 213 Queen's Road East, Wan Chai.

Views and suggestions on the report should reach Mrs Fanny Lam, the Board Secretary, at Room 1123, Education Department Headquarters, Wu Chung House, on or before July 8 (Monday).

To gauge public views on the report, two public consultation sessions will be conducted on June 12 (Wednesday) at Grantham Campus of the Hong Kong Institute of Education at 42 Gascoigne Road, Kowloon, and June 13 (Thursday) at Hong Kong Teachers' Centre at 4 Pak Fuk Road, North Point, respectively. Both sessions will be held between 6 pm and 8 pm.

14

The report offers 70 improvement recommendations, covering 10 areas in special education:

* Administration and co-ordination of special education

Educational concerns in special education

Provisions in the Code of Aid for special schools

* The curriculum and related matters

Teacher education

* Education for children with learning difficulties

* Education fro the gifted

Education for the maladjusted

Practical schools and skills opportunity schools

* Other measures for further improvement

Enquiries about the consultation sessions may be directed to Senior Executive Officer, Mrs Mabel Mak, on 2892 5793.

End

External investments in non-manufacturing undertakings * ♦ ♦ ♦ ♦

The Census and Statistics Department announced today (Thursday) that the Survey of External Investments in Non-manufacturing Undertakings for 1995 had started.

The survey aims to collect up-to-date information on external investments in non-manufacturing sectors. The data are useful to both the Government and the private sector in formulating policies and making decisions.

The Commissioner for Census and Statistics, Mr Frederick Ho, appealed to the managements of all sampled business undertakings to fulfil their legal and social responsibilities by returning promptly the completed questionnaires and co-operating with census officers of the department in the course of the survey.

He stressed that information relating to individual business undertakings would be treated in strict confidence under the Census and Statistics Ordinance. Only aggregated information that does not reveal details of individual undertakings will be released.

15

Mr Ho also pointed out that audited accounts were not essential for the supply of data required in the survey. The Census and Statistics Department accepts figures based on preliminary accounts or estimates which are correct to the best of the respondents’ knowledge at the time of submission of the questionnaire, if audited accounts are not yet available.

About 3,000 business undertakings in the non-manufacturing sectors will be enumerated in the present round of the survey. Information to be sought in the survey includes type of ownership, employment, types of business, capital and expenditures, business plans and the opinion on Hong Kong as a location for investment.

The survey is conducted under the Census and Statistics (Annual Survey of External Investments in Non-manufacturing Undertakings) (Amendment) Order 1995, which was gazetted on April 28, 1995, under the Census and Statistics Ordinance.

Survey questionnaires have been mailed to the sampled business undertakings. These business undertakings are required by law to complete and return the questionnaires to the Census and Statistics Department by June 30, 1996.

If required, census officers of the department will visit individual business undertakings and assist them in completing the questionnaires. These officers will carry a Government Identity Card and a certificate for conducting the survey whilst on duty, which are available for inspection.

Any enquiries regarding the survey may be directed to the General Economic Surveys Section of the Census and Statistics Department on 2805 6647 or 2805 6436.

End

Pamphlet on Chinese medicine published ♦ ♦ ♦ ♦ ♦

A new pamphlet promoting the safe and proper use of Chinese medicine is now available free of charge to members of the public.

Published by the Preparatory Committee on Chinese Medicine (PCCM), the pamphlet aimed at enhancing public’s awareness on the safe use of Chinese medicine and their knowledge on the characteristics of some common toxic Chinese herbs.

16

Introducing the pamphlet today (Thursday), Chairman of the Working Group on Chinese Medicine of PCCM, Mr Tam Ling-kwan noted that the publication contained two articles featuring the correct methods in choosing and preparing Chinese medicine and a brief description of Chinese herbs medication and food medication.

"In addition, it lists out the names of 31 potent/toxic Chinese herbs, their usage and some useful advice on their preparation. It will help people identify those commonly found herbs which contain certain toxicity," he said.

"We hope that through this public education exercise, people will have a better understanding of and be more careful in the use of these toxic Chinese herbs."

Mr Tam said in compiling the list, PCCM had made reference to a similar list prepared by the State Council of People's Republic of China and recent local herbal poisoning cases.

Copies of the pamphlet are now available at Department of Health's regional offices and health education centres, District Offices, public hospitals and Chinese medicinal organisations.

End

CD ROM to publicise Sex Discrimination Ordinance *****

The Home Affairs Branch (HAB) has produced a CD ROM to enhance public understanding of the Sex Discrimination Ordinance (SDO) which aims to promote equal opportunities for women and men.

It is another initiative following the recent publication of the comic book to publicise SDO, which has been well received by members of the public, particularly the students, women's groups and the banking sector.

Describing the newly-released CD ROM as a comprehensive guide to the ordinance, an HAB spokesperson said its contents were divided into six main parts.

The CD ROM starts with a brief introduction of SDO. It then proceeds to define sex discrimination and sexual harassment.

Examples are portrayed with comic illustrations. Relevant provisions are listed in each example to provide viewers with a quick reference.

17

The third part contains information about the newly established Equal Opportunities Commission which has been tasked to eliminate discrimination and promote equal opportunities between men and women under the ordinance.

The fourth part carries the full English and Chinese version of the Sex Discrimination Ordinance while the fifth part is a quiz on the ordinance to test viewers' understanding of various provisions.

The last part is the drama version of the new comic book on SDO dubbed in Cantonese.

The CD ROMs on SDO will be distributed to women and youth groups, public libraries, secondary schools, tertiary educational institutions and community organisations.

They are now available at the Marketing Office of the Information Services Department, 17th floor, Siu On Centre, 176-192 Lockhart Road, Wan Chai. Interested parties may also telephone 2511 8165 to obtain free copie.

End

Crown rents due on June 24 ♦ ♦ * ♦ ♦

Demand notes have been issued for Crown rents for the half year ending on June 24 in respect of an amount exceeding $100 per year, a spokesman for the Treasury said today (Thursday).

Payment can be made using the Payment by Phone Service (PPS) or by post addressed to the Director of Accounting Services, P O Box 8000, GPO, Hong Kong, or in person at any of the following offices: .

* The Treasury Headquarters Collection and Payment Office, Immigration Tower, first floor, 7 Gloucester Road, Wan Chai, Hong Kong;

The Central Sub-Treasury, Central Government Offices (West Wing), 11 Ice House Street, Hong Kong;

* The North Point Sub-Treasury, Max Share Centre, first floor, 373 King's Road, North Point, Hong Kong;

18

* The Sai Wan Ho Sub-Treasury, Eastern Law Courts Building, ground floor, 29 Tai On Street, Sai Wan Ho, Hong Kong;

The Yau Ma Tei Sub-Treasury, Kowloon Government Offices, fourth floor, 405 Nathan Road (Market Street entrance), Kowloon;

* The Kowloon City Sub-Treasury, Man Sang Commercial Building, first floor, 348-352 Prince Edward Road (comer of Prince Edward Road and Junction Road), Kowloon;

* The District Office at Sai Kung, Sha Tin, Tai Po, North, Yuen Long, Tuen Mun, Tsuen Wan or Kwai Tsing.

Crown rent payers who have not received their demand notes should bring along those for any previous period to any of the Treasury collection offices.

Duplicate demand notes will be issued to them. Payment can then be made at any of these offices.

If the payers cannot produce demand notes for any previous period, they should enquire at the Crown Rent Unit of the Treasury at Immigration Tower, 30th floor, 7 Gloucester Road, Wan Chai, Hong Kong.

Non-receipt of the demand notes does not alter the requirement that the Crown rents must be paid by June 24, the spokesman said.

Crown rent payers who have submitted a valid direct debit authorisation should note that if the wording "Payment To Be Made By Autopay" is shown on the demand notes, payment will be made by direct debit to their bank accounts on June 24.

They should then ensure that their bank accounts contain the necessary funds on that date.

If the above wording is not shown, they should pay according to the instructions as set out in the demand notes.

To save queuing time, the spokesman urged Crown rent payers to use the Payment by Phone Service, or pay by post using cheques or cashier orders, or by early personal attendance at any of the collection offices.

However, the most convenient payment method is autopay under which Crown rent payers' bank accounts will only be debited on Crown rent due dates, he said.

Applications for autopay are obtainable from Treasury collection offices, district offices and all major banks in Hong Kong or by telephoning 2829 4999.

19

For additional information regarding the Payment by Phone Service, please call 900 00 222 329.

The spokesman advised Crown rent payers to note the following points:

* To avoid legal action for re-entry of a property, the owner for the time being of that property is obliged to pay Crown rent including any arrears as demanded;

The Crown rent payable under a lease of a property which has been renewed under the Crown Leases Ordinance and re-developed, will be three per cent of the rateable value of that property as assessed following the redevelopment.

Pending completion of the assessment and other related procedures, Crown rent demands will be based upon the pre-redevelopment rateable value.

In due course, Crown rent for the difference between the rent based upon pre- and post-redevelopment rateable values will be demanded and the owner for the time being is obliged to pay the rent as demanded. If he does not, legal action for re-entry of the property may be instituted.

. Demand or acceptance of Crown rent in respect of any property with unauthorised structures does not imply in any way that the unauthorised structures are authorised or otherwise recognised by the Government.

The Government expressly reserves the right to take whatever action in respect of such unauthorised structures it considers appropriate, including demolition or removal of the structures or re-entry of the property.

He advised property buyers to instruct their solicitors to ensure that at the time of purchase the Crown rent was paid up to date.

If a property is subject to the Crown Leases Ordinance and has been redeveloped but the rental paid up to the date of the purchase is not based upon an assessment of the rateable value of the property since its redevelopment, appropriate steps should be taken by the purchaser or his solicitors to protect the purchaser, the spokesman said.

Enquiries on outstanding accounts in respect of Crown rent may be addressed to the Director of Accounting Services. The fee is $60 for each enquiry per property.

End

20

Grading of beach water quality ♦ ♦ ♦ ♦ ♦

The Environmental Protection Department (EPD) today (Thursday) announced the grading of Hong Kong's beaches, based on their bacteriological water quality, for the 1996 swimming season.

The purpose of the grading system is to inform swimmers and the general public about the state of bacteriological pollution at various beaches.

The grading, which is based on the most recent E coli data obtained by EPD in its routine monitoring programme, will be announced biweekly during the bathing season to coincide with the frequency at which beach waters are usually sampled.

As with last year, it also includes an estimate of the risk of contracting some minor skin or gastrointestinal complaints as a result of swimming at a beach which has some degree of pollution.

The estimate is based on a very large body of statistical information gathered in Hong Kong in recent bathing seasons.

The grading of some beaches may vary during the summer. This represents a natural fluctuation in the bacteriological quality of bathing waters in most cases, as rain and tides bring more or less pollution to the beaches.

However, the grades give a good general picture of the water quality at bathing beaches at the time of reporting and form the best available forecast for the immediate future.

Beaches with highly developed hinterlands are likely to be more polluted than the grades suggest during and after heavy rain.

"Bathers should avoid such beaches for two or three days after a storm, longer if the weather remains overcast or less if there is strong sunshine", acting Principal Environmental Protection Officer, Mr Edmond Ho, said.

The system for grading beach water quality is as follows:

Grade "1" indicates that the water quality is good. The E coli count is no more than 24 per 100 millilitres at each beach so graded, and the expected risk of minor illness to swimmers is undetectable.

Grade "2" indicates that the water quality is fair. The E coli count is no more than 180 per 100 millilitres at each beach so graded, and the expected health risk is no more than 10 cases of minor illness per 1,000 swimmers.

21

Grade "3" indicates that the water quality is poor. The E coli count is no more than 610 per 100 millilitres at each beach so graded, and the expected health risk is no more than 15 cases of minor illness per 1,000 swimmers.

Grade "4" indicates that the water quality is very poor. The E coli count is more than 610 per 100 millilitres at each beach so graded, and the expected health risk is more than 15 cases of minor illness per 1,000 swimmers.

The decision whether or not to close a beach to swimmers is based on a judgement of what degree of pollution is acceptable.

Normally, the closure of a beach would only be considered by the Urban or Regional Council if a grade "4" occurred repeatedly, so that the average health risk over the bathing season exceeded 15 cases per 1,000 swimmers.

At present five gazetted beaches, namely Anglers', Approach, Castle Peak, Rocky Bay and Ting Kau, are closed to swimmers, while Old Cafeteria is re-opened.

The decision to open or close the beaches has been made by the Regional and Urban Councils on the basis of beach water quality monitoring data for 1995. Hie public are advised not to swim at the closed beaches. They are identified by an "X" in the following list.

The grades of the bacteriological water quality of various beaches in Hong

Kong today are listed below: Previous Present

Beach Grading Grading

(as at 23.5.96) (as at 6.6.96)

Hong Kong South

Big Wave Bay (S) 3 3

Chung Hom Kok (S) 1 1

Deep Water Bay (S) 1 1

Hairpin (S) 2 2

Middle Bay (S) 1 1

Repulse Bay (S) 1 1

Shek O(S) 3 2

South Bay (S) 1 1

St. Stephen’s (S) 3 2 •

Turtle Cove (S) 1 1

Stanley Main (S) 2 2

Rocky Bay X X

22

Tuen Mun District

Golden Beach Old Cafeteria New Cafeteria Castle Peak Kadoorie (S) Butterfly (S)

3

3

3 X

3

3

3

3

3 X

3

3

Sai Kung District

Clear Water Bay 1st Beach(S) 2

Clear Water Bay 2nd Beach(S) 2

Hap Mun Bay (S) 1

Kiu Tsui (S) 1

Silverstrand (S) 3

Trio (Hebe Haven) (S) 2

2 2

1 1

3 2

Islands District

Cheung Sha Upper 1

Cheung Sha Lower 2

Discovery Bay* 2

Hung Shing Yeh 1

Kwun Yam Wan 1

Tong Fuk 1

Lo So Shing 1

PuiO 2

Silvermine Bay 2

Tung Wan, Cheung Chau (S) 2

1

3

2 1

2

1

1

1

2 2

Tsuen Wan District

Anglers'

Approach

Casam (S)

Gemini

Hoi Mei Wan

Lido (S)

Ting Kau

Tung Wan, Ma Wan

X

X 4

4 3

3 X

2

X X 4 4 3 3

X 2

Note: "X" * (S)

The beach has been closed for swimming purposes.

Non-gazetted beach.

Beaches were shark prevention nets have been installed.

23

The following beaches have changed grading on this occasion: Shek O and St. Stephen's from "3" to "2"; Pui O from "2" to "1"; Cheung Sha Lower from "2" to "3" and Kwun Yam Wan from "1" to "2".

The changes are within the normal range of fluctuation of the bacteriological water quality of these beaches.

End

Hong Kong Monetary Authority money market operations

*****

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

Opening balance in the account 2,323 0930 -362

Closing balance in the account 1,679 1000 -362

Change attributable to : 1100 -364

Money market activity -364 1200 -364

LAF today -280 1500 -364

1600 -364

LAF rate 4.00% bid/6.00% offer TWI 124.4 *+0.0* 6.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.01 2 years 2805 6.30 100.10 6.34

1 month 5.05 3 years 3904 6.30 99.07 6.77

3 months 5.15 5 years 5103 6.75 97.96 7.39

6 months 5.29 7 years 7305 7.60 99.63 7.82

12 months 5.67 5 years M502 7.30 99.37 7.61

Total turnover of EF bills and notes - $8,421 million

Closed June 6, 1996

End

DAILY INFORMATION BULLETIN

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

Friday, June 7,1996

Contents Eage .No,

36th JLG meeting Joint Communique....................................... 1

Chief Secretary promotes US-HK relations in Dallas...................... 1

Safety law on cantilever scaffold....................................... 3

Emergency relief for industrial accident victims' families.............. 4

Public views on age discrimination in employment sought................. 4

Labour Advisory Board held meeting in Geneva............................ 7

Bilingual report on rights of the child published....................... 9

Volume and price movements of external trade in March.................. 10

Yuen Long land use plans approved...................................... 16

Contents

Page No.

Conversion and extension works for schools................................. 17

Draft Lam Tei and Yick Yuen Outline Zoning Plan published.................. 17

Draft So Kwun Wat Outline Zoning Plan published............................ 19

Eastern District Festival.................................................. 21

Fatal traffic accidents drop to lowest level in 25 years................... 21

21-Gun Salute for Duke of Edinburgh's birthday............................. 23

No post during holidays.................................................... 23

Fresh water cut in Central................................................. 24

Hong Kong Monetary Authority money market operations....................... 24

1

36th JLG meeting Joint Communique ♦ ♦ ♦ ♦ ♦

The Joint Liaison Group held its thirty-sixth meeting in London on June 5, 6 and 7, 1996.

The group had a discussion about the transfer of Government, including the transitional Budget and related matters, transfer of Archives, Government assets, the handover ceremony etc.; matters relating to Hong Kong’s international rights and obligations; Hong Kong's air services agreements and air services arrangements between Hong Kong and Taiwan; Civil Service matters; the defence of Hong Kong and public order; franchises and contracts extending beyond 1997 and related matters, (including the Railway Development strategy and Container Terminals); investment promotion and protection agreements between Hong Kong and relevant countries; surrender of fugitive offenders agreements between Hong Kong and certain countries; mutual legal assistance in criminal matters between Hong Kong and certain countries; the reciprocal recognition and enforcement of judgements in civil and commercial matters between Hong Kong and foreign countries; localisation of laws, adaptation of laws; the Court of Final Appeal; the implementation of the provisions of the Joint Declaration relating to the right of abode in Hong Kong after 1997; visa abolition agreements, retirement protection and social welfare; and Vietnamese migrants in Hong Kong (boat people and refugees).

The next meeting of the Joint Liaison Group will take place in Peking at a time to be decided.

End

Chief Secretary promotes US-HK relations in Dallas ♦ ♦ ♦ ♦ ♦

The Chief Secretary, Mrs Anson Chan, spent the first day (Thursday, Dallas time) of her first official visit to Dallas calling on some of the city's most prominent government and business leaders.

As head of the Hong Kong-USA'96 delegation, Mrs Chan is on a promotional tour of the US to strengthen cultural and economic ties between the two places.

She started her day with a visit to Texas Instruments headquarters where she had a private meeting with Executive Vice President, William Mitchell, and acting President of the company, William Weber.

2

She addressed business and civic leaders at a luncheon meeting sponsored by the company and watched a demonstration of its latest digital imaging system and other technology.

Mrs Chan then called on the President of the Dallas Chamber of Commerce, Rick Douglas. They agreed there are opportunities to further develop the trading relations between Hong Kong and Dallas.

"Hong Kong is the centre of Asia’s globalisation and Dallas is the centre of America’s globalisation," Mr Douglas said.

To strengthen the social ties and to showcase Hong Kong fashion, the Hong Kong Economic and Trade Office and the Hong Kong Trade Development Council hosted a gala dinner for more than 350 guests.

The Chief Secretary, who was the guest of honour at the dinner, and the Mayor of Dallas, Mr Ronald Kirk, both delivered remarks. Mrs Chan said she hoped that her short stay in Dallas could demonstrate Hong Kong’s drive and resilience.

"I do hope that during our short stay in Dallas we can give you a better feel of what is happening in Hong Kong," Mrs Chan said.

"The people of Hong Kong are confidently going about their private and public business - making long-term plans, and making sure the territory will continue in its important economic role long into the future.

"By showing the territory’s underlying capabilities to the people of Texas, 1 am sure we can help strengthen the Hong Kong-US partnership even further."

Mayor Kirk welcomed Mrs Chan to Dallas by presenting her with a key to the city.

A fashion show, featuring the work of nine leading Hong Kong designers, followed the dinner. The gala event also marked the beginning of a major Hong Kong fashion promotion being held at the Dallas International Apparel Mart.

Mrs Chan started her tour of the US last week in Seattle, and continued on to San Francisco, Boston and New York.

In New York she headed the delegation in the first city for the Hong Kong-USA’96 promotion. After Dallas, the promotion will move to Los Angeles and then Mrs Chan will end her tour with a visit to Washington D C.

End

3

Safety law on cantilever scaffold *****

In response to press enquiries, a Labour Department spokesman said today (Friday) that safety in the use of cantilever scaffold involved in yesterday's fatal industrial accident in Kwai Chung was governed by the following industrial safety legislation provisions:

(a) Regulation 38F of the Construction Sites (Safety) Regulations - that the cantilever scaffold should be adequately supported, fixed or anchored;

(b) Regulation 38G of the Construction Sites (Safety) Regulations - that the structure used as support of the scaffold shall be of sound material, sufficient strength;

(c) Regulation 38K of the Construction Sites (Safety) Regulations - the scaffold shall be inspected by a competent person at monthly intervals who should certify that it is in safe working condition in an approved form (Form 6); and

(d) Section 6A (General Duties Provisions) of the Factories and Industrial Undertakings Ordinance (FIUO) - that a contractor is required to provide a safe system of work.

The maximum fine is $200,000 for a breach against each of these four provisions and an additional penalty of imprisonment of 12 months in respect of Section 6A of the Factories and Industrial Undertakings Ordinance.

The Labour Department has obtained endorsement from the Labour Advisory Board and its Committee on Industrial Safety and Health to proposals to tighten control on working at height, working platforms and use of safety belts and safety nets.

Action is in hand to prepare the draft drafting instructions for the proposed amendment regulations.

End

4

Emergency relief for industrial accident victims’ families * * * * *

Families of the six workers killed as a result of the collapse of a platform on the Rambler Channel Bridge construction site in Kwai Chung have each been offered $5,000 in emergency relief from the General Chinese Charities Fund by the Kwai Tsing District Office this (Friday) afternoon.

Giving the cash relief and offering his condolences to the families, the Kwai Tsing District Officer, Mr Ngai Wing-chit, said staff of the district office and other concerned government departments would keep close contact with them to see if any further assistance was needed.

End

Public views on age discrimination in employment sought

*****

A two-month consultation to solicit public views on age discrimination in employment was started today (Friday) by the Government.

This followed a study conducted by an interdepartmental working group set up last year in the light of concerns expressed over possible discrimination of this kind.

Speaking at a press conference to launch the public consultation, the Secretary for Education and Manpower, Mr Joseph W P Wong, said the study concentrated on the possible age discrimination in employment which was the main concern, but members of the public were free to express their views on any other aspects of possible age discrimination.

Mr Wong noted that the study covered four main areas.

"The first of these was statistical analysis, where two separate exercises were undertaken.

"One exercise examined the precentage of newspaper job advertisements which mentioned age as a job requirement. During the three survey over a six month period from July 1995 to January 1996, the number of such advertisements remained below 20 per cent.

5

"Amongst the newspaper job advertisements which did stipulate such a requirement, the most common were in the occupational categories of (a) sales/service workers; (b) clerical workers; and (c) manual or unskilled workers," he said.

"In the second exercise, we studied the unemployment and underemployment statistics from the General Household Survey for 1994 and 1995, and found no evidence to support any discrimination in employment against persons of any age group.

"The working group also examined overseas age discrimination legislation in a number of countries, as well as other legislative measures that were designed to protect either younger or older workers."

Two members of the working group, accompanied by two Legislative Councillors, also travelled to Australia and New Zealand to discuss in greater detail the actual operation, implementation and effect of the age discrimination legislation in those countries.

Mr Wong said it was noticeable from this aspect of the study that only a comparatively small number of countries had legislated against age discrimination in employment.

"And even where such legislation exists, it is recognised generally as being no substitute for public education," he said.

Mr Wong pointed out that an important part of the study was the fact-finding survey, which was designed to collect information on factors affecting major employment decisions including recruitment, job security, and other employment conditions such as promotion and training policy, and to ascertain whether age discrimination had a role to play in such decisions.

It was carried out earlier this year by researchers of the Centre for Public Policy Studies, Lingnan College, assisted by the market research firm Survey Research Hongkong Ltd.

The main points in the survey report are as follows:

(a) there is some evidence that job seekers and workers at both ends of the age spectrum are disadvantaged when compared to those aged between 25 and 44;

(b) older workers tend to receive lower wage increases, are less likely to be in promotable jobs, less likely to be promoted, and less likely to be selected for training. This conclusion, however, needs to be considered in the light of the possibility that some of the surveyed older workers may have reached their top salary point or highest pay band;.

6

(c) a significant proportion of employer respondents indicates no age preference for a number of job related characteristics. For those who do, younger workers are preferred in aspects such as value for money, ability to deal with clients, ability to learn new skills and productivity/performance. On the other hand, older workers are preferred in aspects such as loyalty/low turnover, low absenteeism and maturity.

(d) employers may attempt to save money by engaging in statistical age discrimination. This means that they screen out an individual from an employment opportunity on the assumption that he or she possesses certain traits which happen to coincide with old age, irrespective of whether the person actually possesses such traits; and

(e) while there is little evidence of pure age discrimination by employers solely from personal prejudice, there seems to be some evidence of age discrimination by the market.

Mentioning the above, Mr Wong cautioned that while some evidence seemed to suggest the presence of age discrimination in employment, other evidence pointed to a different conclusion.

On the way ahead, Mr Wong said the Government was keeping an open mind on the preferred approach to deal with the issue.

He noted that the study had indicated that there were three possible broad options:

(a) to retain the status quo, and take no particular Government measures other than to monitor the situation regularly;

(b) to introduce age discrimination in employment legislation. In considering such legislation, it was necessary to bear in mind that it could not guarantee jobs, and might not be an effective means of changing public attitudes. Furthermore, legislation could introduce artificial impediments that hinder the free play of market forces, imposing rigidities on their operations and possibly also adding to the cost of doing business; and

(c) a non-legislative option which could combine public education and selfregulation.

7

Mr Wong called on members of the public to study the consultation paper and forward their views to the Government by August 7.

They may write or fax to:

The Secretary for Education and Manpower

Central Government Offices

ninth floor, West Wing

11 Ice House Street

Hong Kong

Fax 2868 5916

Comments may also be sent over the Internet to embinfo@emb.gcn.gov.hk.

Copies of the consultation paper may be obtained from the district offices and the Labour Department's local employment service offices from Monday (June 10).

End

Labour Advisory Board held meeting in Geneva * * * ♦ ♦

The Labour Advisory Board (LAB) had held a special meeting in Geneva, Switzerland, yesterday (Thursday) while attending the 83rd session of the International Labour Conference.

A proposal for extending the deadline for application for compensation under the Occupational Deafness (Compensation) Ordinance was considered at the meeting which was chaired by Commissioner for Labour, Miss Jacqueline Willis, and attended by all 12 LAB members.

Under the ordinance, employees who have already left employment from noisy occupations on July 1 last year and who wish to apply for compensation have to make an application not later than June 30.

The Occupational Deafness Compensation Scheme (the scheme) which commenced operation in July 1995 is currently under review by a working group set up by the Labour Department.

8

In respect of the deadline for application, the working group recommended that it be extended by 12 months so as to allow time for potential applicants who, for one reason or another, might not be aware of the scheme.

LAB members noted that it was necessary to set a deadline for application as there would be difficulties in verifying the employment history of an applicant due to the lapse of time.

Members also noted that delays in making an application would make it difficult for an accurate assessment of hearing loss to be made as the audiological test results could be unduly distorted by the effect of old age on hearing.

After deliberation, the proposal to extend the deadline by 12 months to June 30, 1997, was accepted.

Another proposal which relates to the extension of the grace period under the Sex Discrimination Ordinance (SDO) in connection with the Women and Young Persons (Industry) Regulations (WYP)(I) was also discussed.

The WYP(I) Regulations which provides protective restrictions on the employment of women in industry are considered incompatible with the provisions of SDO.

Under SDO, a one-year grace period is provided to allow time for amendments to be made to ordinances and regulations which are considered incompatible with the SDO.

LAB members were informed that the Labour Department had completed a review of the WYP(I) Regulations and was examining several options to effect amendment.

As the grace period is due to expire in July, the Labour Department recommends an extension of one year so as to allow time for consultations to be made on the options. The proposal was accepted.

At the meeting, members also considered four applications for importation of workers under the Supplementary Labour Scheme.

Having examined the cases, LAB supported two applications for importation of care home attendants and gardening workers respectively. Two other applications for bakers and care home attendants were rejected.

9

Speaking from Geneva, Miss Willis said it was befitting that LAB, which was a tripartite forum, should hold a special meeting on the occasion of the International Labour Conference.

It was particularly meaningful as one of the main discussion items of this year's conference was tripartite consultation on economic and social policy, she added.

Other items for discussion of the International Labour Conference included employment policy, home work and international labour standard. The Conference is attended by some 2,000 delegates from about 150 member countries of the International Labour Organisation.

End

Bilingual report on rights of the child published * * ♦ ♦ ♦

The bilingual version of the initial report on the implementation of the United Nations Convention on the Rights of the Child (UNCRC) in Hong Kong is now available to the public.

The report, submitted to the United Nations by the United Kingdom Government in February, was tabled in the Legislative Council on March 27.

It details measures adopted by the Hong Kong Government to give effect to the rights recognised in the Convention up to September 7 last year, the first anniversary of the extension of the Convention to Hong Kong.

The UN Committee on the Rights of the Child is expected to examine the report at its session in September to October this year.

Copies of the initial report are now available at various district offices and the Marketing Office of the Government Information Services. 17th floor, Siu On Centre, 176-192 Lockhart Road, Wan Chai.

Reference copies will also distributed to libraries of the Urban Council and the Regional Council.

Interested parties can call 2835 1559 for free copies of the report.

End

10

Volume and price movements of external trade in March *****

In the first three months of 1996, the volume of re-exports increased by 7.5% over the same period last year, while the volume of domestic exports decreased by 7.4%, according to the statistics released today (Friday) by the Census and Statistics Department.

Taking re-exports and domestic exports together, the volume of total exports increased by 4.9%. Meanwhile, imports increased by 5.2% in volume.

The growth in the volume of trade is derived from the growth in trade values with the effect of price changes being discounted.

As regards price changes over the same period of comparison, the prices of reexports and domestic exports increased by 1.2% and 1.8% respectively. Import prices increased by 1.4%.

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, recorded no significant change in the first three months of 1996 over the same period last year.

Comparing March 1996 with March 1995, the volume of re-exports decreased by 4.9%, while that of domestic exports decreased by 20%. Taken together, the volume of total exports decreased by 7.4%. Meanwhile, the volume of imports decreased by 1.0%.

Over the same period of comparison, the prices of re-exports and domestic exports increased by 0.7% and 1.8% respectively. Import prices increased marginally by 0.6%.

The changes in the value, unit value and volume of re-exports by end-use category are shown in Table 1.

Comparing March 1996 with March 1995, the volume of re-exports of fuels and capital goods increased by 25% and 16% respectively.

11

On the other hand, the volume of consumer goods, foodstuffs and raw materials and semi-manufactures decreased by 16%, 12% and 1.7% respectively.

Over the same period of comparison, increases in the prices of re-exports were noted of fuels (+15%) and consumer goods (+1.6%).

On the other hand, the re-export price of capital goods, foodstuffs and raw materials and semi-manufactures decreased by 1.2%, 0.4% and 0.1% respectively.

The changes in the value, unit value and volume of domestic exports by principal commodity group are shown in Table 2.

Comparing March 1996 with March 1995, commodity group which recorded significant increase in volume of domestic exports included domestic electrical appliances (+67%).

On the other hand, the volume of domestic exports of footwear and textile made-ups and related articles decreased by 72% and 56% respectively.

Commodity groups which recorded increases in domestic export prices included metal ores and scrap (+7%); and metal manufactures (+6.9%).

On the other hand, the domestic export price of domestic electrical appliances and footwear decreased by 4.3% and 3.8% respectively.

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 decreased marginally by 0.6% in March 1996 compared with March 1995.

Significant decreases in the import volume were noted of vegetables; and tea and coffee. However increases were recorded in the import volume of wheat and flour; and cereals and cereal preparations other than rice, wheat and flour.

Over the same period of comparison, the import volume of consumer goods decreased by 13%.

Decreases in import volume were recorded in alcoholic beverages; and clothing. However, increases in the import volume were noted of tobacco manufactures; and household-type electrical appliances.

12

The import volume of raw materials and semi-manufactures increased by 3.4% in March 1996 compared with March 1995.

Increases in import volume were recorded in most of the raw materials and semi-manufactures. Significant increases were noted of base metal other than iron and steel; and thermionic, cold cathode or photo cathode valves and tubes, diodes, transistors etc and parts thereof. However, decreases in the import volume were noted Of silk fabrics; and wool and other animal hair.

Imports of fuels decreased by 6.7% in volume in March 1996 compared with March 1995.

As regards capital goods, the import volume increased by 16% in March 1996 over March 1995.

Notable increases were recorded in the import volume of office machines; and industrial machinery, other than textile machinery and electrical machinery. The import volume of construction machinery however decreased.

Comparing March 1996 with March 1995, the import prices of most of the enduse categories increased : fuels (+8.3%); consumer goods (+2.3%); raw materials and semi-manufactures (+0.1%).

On the other hand, the import price of capital goods decreased by 1.9% while the import price of foodstuffs recorded no significant change.

Details of the above statistics are published in the March 1996 issue of the "Hong Kong Trade Index Numbers”.

The report will be available on sale around June 11 at HK$14 per copy at either the Government Publications Centre on the ground floor, Low Block, Queensway Government Offices, 66 Queensway; or the Publications Section of the Census and Statistics Department on the 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai.

Enquiries regarding regular subscription to this report may be directed to the Publications (Sales) Office of the Information Services Department at 28th floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (Tel 2598 8194) and enquiries on trade indices to the Census and Statistics Department (Tel 2582 4918).

End

- 13 -

Table 1 : Changes in re-exports by end-use category

Comparing MAR 1996 Comparing JAN-MAR 1996 with MAR 1995 with JAN-MAR 1995

End-use category % changes % changes

Value Unit Value Volume Value Unit Value Volume

Foodstuffs -12.6 -0.4 -11.5 4.6 0.3 5.0

Consumer goods -14.8 1.6 -16.3 4.1 1.9 1.9

Raw materials and semi-manufactures -1.8 -0.1 -1.7 9.4 1.0 8.1

Fuels 43.4 14.9 25.0 29.3 14.7 16.0

Capital goods 10.9 -1.2 15.9 16.8 -0.6 20.7

ALL COMMODITIES -5.3 0.7 -4.9 8.1 1.2 7.5

- 14 -

Table 2 : Changes In domestic exports by principal commodity group

Comparing MAR 1996 Comparing JAN-MAR 1996 with MAR 1995 with JAN-MAR 1995

% changes % changes

Commodity group Value Unit Value Volume Value Unit Value Volume

Clothing -33.5 2.4 -34.6 -5.1 2.4 -7.3

Textile fabrics -18.5 1.8 -20.9 -3.2 1.1 -5.9

Textile yarn and thread 5.2 6.3 -0.3 6.9 8.0 -0.1

Textile made-ups and related articles -57.1 -0.4 -56.5 -22.4 -0.5 -20.8

Radios of all kinds -32.9 5.0 -40.8 45.5 6.2 22.1

Electronic components -0.4 0.7 -2.6 -1.9 -0.3 -2.9

Footwear -73.3 -3.8 -71.7 -51.8 -2.5 -50.7

Metal manufactures -27.9 6.9 -32.6 -7.4 7.1 -13.9

Metal ores and scrap -20.7 7.0 -22.6 -14.5 5.4 -14.6

Watches and clocks -25.0 -0.2 -24.8 -8.5 -0.3 -7.9

Travel goods, handbags and similar articles -29.8 3.7 -32.7 -2.1 3.5 -6.2

Domestic electrical appliances 57.2 -4.3, 66.9 38.3 -3.2 44.3

ALL COMMODITIES -18.5 1.8 -19.5 -6.0 1.8 -7.4

- 15 -

Table 3 : Changes in imports by end-use category

Comparing MAR 1996 Comparing JAN-MAR 1996 with MAR 1995 with JAN-MAR 1995

End-use categpry % changes % changes

Value Unit Value Volume Value Unit Value Volume

Foodstuffs -0.2 * -0.6 4.6 1.1 3.1

Consumer goods -10.6 2.3 - -12.7 2.5 2.4 .0.1

Raw materials and semi-manufactures 2.1 0.1 3.4 6.0 1.1 5.6

Fuels 3.2 8.3 -6.7 24.6 8.3 14.9

Capital goods 13.6 -1.9 15.8 13.3 -0.4 14.5

ALL COMMODITIES -0.7 0.6 -1.0 6.4 1.4 5.2

less than 0.05%

End

16

Yuen Long land use plans approved

*****

The Govemor-in-Council has approved the Development Permission Area (DPA) plans for Tong Yan San Tsuen and Ping Shan, a spokesman for the Town Planning Board said today (Friday).

"The two plans will establish statutory land use frameworks to provide guidance for planning and to facilitate development control within the Tong Yan San Tsuen and Ping Shan areas in Yuen Long.

"The respective draft statutory outline zoning plan is being prepared and will be published to replace the approved DPA plan," he added.

The two approved plans (Nos DPA/YL-TYST/2 and DPA/YL-PS/2) are available for public inspection during normal office hours at:

* Planning Department 16th floor, Murray Building Garden Road, Central, Hong Kong;

Tuen Mun and Yuen Long District Planning Office Level 11, Metroplaza Tower 1, 223 Hing Fong Road, Kwai Fong, New Territories; and

* Yuen Long District Office ground floor, Yuen Long District Office Building, 269 Castle Peak Road, Yuen Long, New Territories.

Copies of the plans are on sale at the Survey and Mapping Office, Lands Department, 14th floor, Murray Building, Garden Road, Central, Hong Kong, and the Kowloon Map Sales Office, ground floor, 382 Nathan Road, Kowloon.

End

17

Conversion and extension works for schools ♦ ♦ ♦ ♦ ♦

The Architectural Services Department is inviting tenders for conversion and extension works including associated drainage to 10 existing aided schools.

Works will start in September for completion in August next year.

Tender forms and further particulars can be obtained from the Architectural Services Department, 34th floor, Queensway Government Offices, 66 Queensway, Hong Kong.

Tender offer will close at noon on July 5.

End

Draft Lam Tei and Yick Yuen Outline Zoning Plan published * ♦ ♦ ♦ ♦

The Town Planning Board today (Friday) announced the publication of the draft Lam Tei and Yick Yuen Outline Zoning Plan (OZP).

’’The rural OZP replaces the approved Development Permission Area (DPA) plan for Lam Tei and Yick Yuen in Tuen Mun District,” a spokesman for the Board said.

"It indicates more definite and comprehensive land use zones to guide and control development in the area.

"Similar to the DPA plan, unauthorised developments within the OZP are subject to enforcement actions.

"The general planning intention of the draft OZP, which covers a total of about 534 hectares of land, will designate the Lam Tei and Yick Yuen area for sub-urban development.

"A local centre in Lam Tei which lies between the two existing urban centres of Tuen Mun New Town and Yuen Long Town has been planned to serve the local residents.

18

"For areas further away from these centres and from existing and planned infrastructure provisions, developments with less intensity will be envisaged."

On the plan, about 91 hectares of land have been zoned 'Village Type Development' and about 66 hectares as 'Residential (Groups B)', 'Residential (Group C)' and 'Residential (Group D)' for sub-urban developments including village housing and private residential developments.

To serve the needs of the local and district population, two sites of nine hectares and one hectare have been respectively zoned 'Govemment/Institution/Community' and 'Commercial'.

A site of about 4.6 hectares to the west of Fuk Hang Tsuen Road and north of Lam Tei Main Street has been zoned 'Comprehensive Development Area' to provide significant improvement to the environment and to enhance Lam Tei as a local centre.

Also, about seven hectares of land has been zoned 'Industrial (Group D)' to provide an opportunity for existing industrial uses to operate efficiently by improving and expanding as necessary in the designated area.

About 283 hectares of land has been zoned 'Green Belt' and 'Conservation Area' to define the limits of urban and sub-urban development areas and to retain the existing natural landscapes and topographical features in rural areas.

A 21.71-hectare site located to the north-west and south of San Hing Tsuen has been zoned 'Undetermined'.

The draft Lam Tei and Yick Yuen OZP (No S/TM-LTYY/1) is available for public inspection until August 7 during normal office hours at:

* Planning Department 16th floor, Murray Building Garden Road, Central, Hong Kong;

* Tuen Mun and Yuen Long District Planning Office Level 11, Metroplaza Tower 1, 223 Hing Fong Road, Kwai Fong, New Territories; and

* Tuen Mun District Office floor, Tuen Mun Government Offices, 1 Tuen Hi Road, Tuen Mun, Territories.

19

Any person affected by the draft plan may submit written objection before August 7 to the Secretary of the Town Planning Board, c/o Planning Department, 13th floor, Murray Building, Garden Road, Central, Hong Kong.

Copies of the draft plan are on sale at the Survey and Mapping Office, Lands Department, 14th floor, Murray Building, Garden Road, Central, Hong Kong, and the Kowloon Map Sales Office, ground floor, 382 Nathan Road, Kowloon.

End

Draft So Kwun Wat Outline Zoning Plan published *****

The Town Planning Board today (Friday) announced the publication of the draft So Kwun Wat Outline Zoning Plan (OZP).

The rural OZP, which replaces the approved Development Permission Area (DPA) plan for So Kwan Wat in Tuen Mun, will provide more definite and comprehensive land use zones to guide and control developments in the area, a spokesman for the board said.

’’Similar to DPA plan, unauthorised developments within the OZP are subject to enforcement actions.

"The OZP, covering a total of about 476 hectares of land, aims at retaining the rural characteristics by preserving hill slopes and active agricultural land and facilitating environmental improvement and physical upgrading of the area.

"Sub-urban developments including private residential development and village housing in appropriate areas will be allowed," the spokesman said.

About five hectares of land have been zoned 'Residential (Group C)’ to reflect existing and committed residential developments and to facilitate future sub-urban residential developments with ancillary supporting facilities.

Another 32 hectares of land have been zoned 'Village Type Development' to facilitate village expansion and to recognise the development rights of the indigenous villagers.

20

To serve the needs of the local and district population, 90 hectares of land have been zoned 'Govemment/Institution/Community' and another one hectare of land has been zoned 'Open Space'.

Two sites with a total area of about 13 hectares have been zoned 'Comprehensive Development Area' to provide significant improvement to the environment. One of the sites is situated to the north of Tuen Mun Road and to the west of Siu Lam Hospital while the other site is on the eastern side of Tai Lam Chung Nullah.

A substantial portion of land, about 308 hectares in total have been zoned 'Green Belt' to define the limits of urban and sub-urban development areas by natural features and to contain urban sprawl as well as to provide passive recreational outlets.

The draft So Kwun Wat OZP (No S/TM-SKW/1) is available for public inspection until August 7 during normal office hours at:

Planning Department, 16th floor, Murray Building, Garden Road, Central, Hong Kong;

Tuen Mun and Yuen Long District Planning Office, Level 11, Metroplaza Tower 1, 223 Hing Fong Road, Kwai Fong, New Territories; and

* Tuen Mun District Office, second floor, Tuen Mun Government Offices, 1 Tuen Hi Road, Tuen Mun, New Territories.

Any person affected by the draft plan may subject written objection before August 7 to the Secretary of the Town Planning Board, c/o Planning Department, 13th floor, Murray Building, Garden Road, Central, Hong Kong.

Copies of the draft plan are on sale at the Survey and Mapping Office, Lands Department, 14th floor, Murray Building, Garden Road, Central, Hong Kong, and the Kowloon Map Sales Office, ground floor, 382 Nathan Road, Kowloon.

End

21

Eastern District Festival *****

The Eastern District Board and residents organisations in the district will join hands to organise what they hope to be the most ambitious district festival ever.

The last Eastern District festival was held in 1987.

As the largest district board in the territory looking after one of the most populous urban areas, the board and representatives of the 590,000 residents will be pooling their resources to stage a programme of festival activities over a period of some six weeks starting from December 14 this year to January 26, 1997.

Apart from promoting the district's characteristics, it is hoped that the festival will at the same time help foster a sense of belonging among residents and a more harmonious atmosphere in the local community.

Highlights of the festival include a nine-day exposition at the Victoria Park to display the success of the industrial and manufacturing sectors in the District and a gala closing at the newly built Siu Sai Wan Sports Ground.

The 1996/97 Eastern District Festival Co-ordinating Committee is now inviting local groups to organise activities in support of the festival. A small grant will be given to help fund their proposed programmes after they have been assessed and approved by the Committee.

Interested local organisations are invited to apply to the Committee's Secretariat at 11th floor. Eastern Law Courts Building, 29 Tai On Street, Sai Wan Ho, Hong Kong, before June 30.

Enquiries can be made by telephoning 2886 6514.

End

Fatal traffic accidents drop to lowest level in 25 years *****

The number of fatal traffic accidents has decreased markedly over the recent years and is now at its lowest level in 25 years, it was revealed at the Road Safety Council meeting on Wednesday (June 5).

The meeting, held at Police Headquarters in Arsenal Street, Wan Chai, on a bimonthly basis, was told that the number of fatal accidents between January and April this year was 66, a sharp 20.5% drop as compared with the same period in 1995.

22

"We are very encouraged by the figure. It shows that increased awareness, courtesy and care on the part of both drivers and pedestrians, in conjunction with the work of the Road Safety Council can make a difference in reducing the accident toll on our roads," a spokesman of the Council said.

"Since the Road Safety Council was formed in 1973, different concerned group such as the Road Safety Association, the Hong Kong Automobile Association and the Institute of Advanced Motorists have been working closely with government departments to create an environment with less traffic hazards.

"However, we should not be complacent about this encouraging drop in accidents. Traffic accident casualties are still too high. We will continue to explore other ways to disseminate road safety messages to all sectors of the community and to create a safer road environment for all."

For the coming year, the Road Safety Council will launch a campaign on pedestrian safety targeting at the elderly and the Chinese immigrants.

A sum of $500,000 has been set aside for the publicity campaign which will be contracted out to an advertising agency.

There are about 580,000 elderly people aged 65 and above in Hong Kong. They are physically weak, very vulnerable to injuries while at the same time many are unaware of road safety rules and practices which could protect them.

The Council is also looking into ways to communicate with the Chinese immigrants and educate them on road users codes in Hong Kong.

The Road Safety Council was formed in 1973 to co-ordinate actions and develop proposals to prevent traffic accidents and provide advice on policies for consideration by the Transport Advisory Committee.

End

23

21-Gun Salute for Duke of Edinburgh’s birthday *****

The following is issued on behalf of the Joint Services Public Relations Staff:

To mark the birthday of His Royal Highness the Duke of Edinburgh, the Royal Navy will fire a 21-Gun Salute from HMS Plover at precisely 12 pm on Monday (June 10), as she buoys up in Victoria Harbour.

When HMS Tamar moved from Prince of Wales Barracks to Stonecutters Island in 1993, gun salutes were fired from a site on the south shore of that island.

However, the site was unsatisfactory because it was invisible to the public and it has since been developed by preparatory work for the new naval base for the PLA Navy.

New saluting cannon were, therefore, brought out from the UK so that gun salutes could be fired from a sea-going warship, in full view of much of the city.

End

No post during holidays ♦ ♦ ♦ ♦ ♦

The Postmaster General, Mr. Robert Footman, announced today (Friday) that during the forthcoming public holidays to celebrate the Queen’s Birthday from June 15 to 17 and Tuen Ng Festival on June 20, all post offices would be closed.

A special mail detvery will be provided on June 15, but there will be no delivery on June 16, 17 and J).

End

24 -

Fresh water cut in Central * ♦ ♦ ♦ *

Fresh water supply to some premises in Central will be temporarily suspended between 11 pm on Monday (June 10) to 6 am the following day to facilitate waste detection work on watermains.

The temporary suspension will affect:

Odd Nos 3'to'9 and Nos 4 to 4A, Queen's Road Central; -

Nos 8 and 15, Cotton Tree Drive;

Nos 10 and 12, Harcourt Road;

* No 2, Murray Road;

Lambeth Walk;

* No 38, 66, and 88, Queensway;

No 1, Garden Road; and

Hong Kong Park.

End

Hong Kong Monetary Authority money market operations

•* ♦ ♦ ♦ ♦ ♦ / z z

Cumulative

Time change

$ million (hours) (^million)

Opening balance in the account 1,679 0930 +279

Closing balance in the account 1,957 1000 +279

Change attributable to : 1100 +279

Money market activity +278 1200 +278

LAF today NIL 1500 +278

1600 +278

LAF rate 4.00% bid/6.00% offer TWI 124.4 *+0.0* 7.6.96

25

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 4.98 2 years 2805 6.30 100.23 6.26

1 month 5.06 3 years 3904 6.30 99.31 6.67

3 months 5.14 5 years 5103 6.75 98.43 7.27

6 months 5.28 7 years 7305 7.60 100.21 7.70

12 months 5.62 5 years M502 7.30 99.75 7.50

Total turnover of EF bills and notes - $14,482 million

Closed June 7, 1996

End

DAILY INFORMATION BULLETIN

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

Saturday, June 8,1996

Contents

Page No,

Observers Travel Enterprise terminates business.......................

Investigation on VM girls' case instructed............................

Important role of HK as trade and services centre stressed ...........

Provision of access for the disabled ensured..........................

Role of modem nurses stressed.........................................

Talk on Bermudan history..............................................

Labour publications available at six main offices.....................

Salt water cut in Tai ................................................

Water cut in Yuen Long................................................

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

9

1

Observers Travel Enterprise terminates business

*****

The Observers Travel Enterprise Co Ltd informed the Registrar of Travel Agents foday (Saturday) that it had decided not to carry on business as a travel agent.

In accordance with the relevant provisions of the Travel Agents Ordinance, the Registrar has issued a notice of intention to revoke the travel agents licence (licence number 350090) which has been issued to the company inviting the company to make a representation by June 18.

"A decision will be made by mid-June as to whether the travel agents licence granted to Observers Travel Enterprise Co Ltd should be revoked.

"It is understood that some outbound travellers have already reported their cases to the Travel Industry Council of Hong Kong. Other clients of the travel agent are advised to get in touch with the company or the Council to ascertain their position in the meantime," a spokesman for the Registrar said.

The Travel Industry Council is situated at Rooms 1706-1709, Fortress Tower, 250 King's Road, North Point, Hong Kong, and its telephone enquiry hotline is 2969 8188.

End

Investigation on VM girls’ case instructed

*****

In the light of fresh evidence, the Governor, the Rt Hon Christopher Patten, has instructed the Commissioner of Correctional Services to look into the cases of two Vietnamese migrant girls who were separated from their parents in camp transfers following the riots in the Whitehead Detention Centre on May 10 and 11 and to report back to him by June 18.

The Governor will study the report before deciding if any further action is required.

End

2

Important role of HK as trade and services centre stressed ♦ ♦ ♦ * ♦

The Chief Secretary, Mrs Anson Chan, said on Friday (Dallas time) the factors that have helped create Hong Kong’s success would not disappear after 1997.

Speaking at the business luncheon organised by the Hong Kong Economic and trade Office and the Hong Kong Trade Development Council (HKTDC), Mrs Chan said Hong Kong wsas the pre-eminent gateway to China and increasingly a centre for trade and services within the region.

”We are the most important bridge between the West and China, not only in commerce but in many other ways too.

"China naturally turns to Hong Kong for expertise. 600 Chinese delegations visit Hong Kong every year for such purposes.

"Bit by bit, Hong Kong is helping to bring standards in China up to those of the rest of the world," she said.

Mrs Chan said Hong Kong was increasingly a centre for trade and services within the region.

"In the past decade, our trade with other Asian countries has grown by almost 600 per cent in value terms, so that it now accounts for 64 per cent of our total trade," she said.

She said as at June 1, 782 companies had established their regional headquarters in Hong Kong, 87 of them since 1994.

Mrs Chan said the factors that underpinned Hong Kong's success would continue to operate in the years ahead.

These include Hong Kong's geographical location, which is on China's doorstep and mid-way between Tokyo and Singapore; its hardworking, flexible and well-educated work-force; a simple and low tax system; an efficient transport and communication infrastructure; and a predictable legal and judicial system.

In addition, she said, Hong Kong's resilience and "can-do" attitude, had enabled us to overcome so many apparently crippling political and economic problems in the past.

r

- 3 -

"As we move inexorably towards July 1, 1997, I believe that we are in pretty good shape to face the future.

"I do not advocate blind optimism about the future, neither do 1 believe in total despair. We have to recognise the problems and face up to them.

"My message is that one can do that and still be positive about the future.

"We forecast continued growth of five per cent per annum in the short to medium term, that is provided we are not knocked off course by any trade dispute between the US and China, our two largest trading partners.

"Unconditional extension of MFN to China is crucially important to us, particularly at this sensitive period of our transition.

"We need a strong economy to sustain confidence in our ability to exercise a high degree of autonomy after July 1997.

"We therefore warmly welcome President Clinton's decision to renew MFN," said Mrs Chan.

The Chief Secretary said she was delighted to find a strong interest in Hong Kong wherever she went in the United States, and Dallas was no exception.

Mrs Chan began the day with a breakfast meeting with the Mayor of Dallas, Ronald Kirk. Mayor Kirk also made the opening remarks at the business seminar.

The business seminar marked the second in a series of three. The first took place on June 5 in New York City and another is scheduled for June 11 in Los Angeles.

During the day, Mrs Chan made other civil, media and business calls. In the evening, she officiated at the opening of the Hong Kong Film Festival and the premiere of the movie Stage Door (Hu-Du-Men) at Dallas' Sony Theatre. The event was attended by film star Anita Yuen and Director Shu Kei.

On Saturday, the Chief Secretary will officiate at the "Hong Kong Salutes Fashionable Dallas" fashion show organised by the HKTDC, before flying to Los Angeles.

End

4

Provision of access for the disabled ensured *****

In response to press enquiries regarding inadequate access for people with disabilities at a commercial building on the Peak, a spokesman for the Buildings Department said today (Saturday) that an access improvement plan submitted by the owner of the building proposing the extension of lift service to level three of the premises had just been approved.

Remedial work is expected to start soon.

“The Buildings Department took up the matter with the developer as soon as the problem was brought to its attention in March this year. We are glad that the problem has now been resolved,” he said.

The spokesman said since 1983, the Government at the request of developers had adopted a simplified system for processing building plans.

Under the system, the Building Authority's checking of new building plans covers eight major aspects. They are:

* plot ratio and site coverage;

building projections;

* open space;

* means of access and escape in case of fire;

* fire resistance and compartmentation;

* lighting and ventilation;

* sanitary provisions; and;

* lane/street provision.

"These eight points reflect the Building Authority's primary responsibility of ensuring the safety, health and environmental standards of private buildings. Building plans will be disapproved if these standards are not met.

"Building professionals and building owners have legal obligations to ensure full compliance with all provisions in the Buildings Ordinance, its subsidiary Regulations and guidelines, including the design manual on access facilities for people with disabilities," the spokesman added.

End

5

Role of modem nurses stressed ♦ ♦ * * *

The modem nurse has become a centrepiece, not only in the care of the sick, but also in a wide range of health related activities in the community, the Secretary for Health and Welfare, Mrs Katherine Fok, said today (Saturday).

Mrs Fok, at the opening of the first Nursing Seminar organised by the Department of Health, also said the changing health needs had brought about seminal changes in the health care delivery system and the people who worked in it.

She pointed out that the Government had responded to the changing health needs by setting up a range of services, the scope of which permeates every sector of the community.

These include the Student Health Service, Women Health Centres and Elderly Health Centres.

"Perhaps nothing is more remarkable than the spectacular shift in the role played by nurses," Mrs Fok said.

"A nurse's presence is felt everywhere, from clinics to schools, from nursing homes to hospitals.

"This twenty-thousand-strong workforce has a diversity and versatility that is unmatched amongst health professionals."

The seminar was the first one organised by the Department of Health to update health care professionals, especially nurses, and the community on the expanded role of nurses in primary health care.

It aims to keep participants informed of the provision of promotive, curative, preventive, and rehabilitative services of the Department of Health.

Also speaking at the opening ceremony of the seminar, the Director of Health, Dr Margaret Chan, paid tribute to the important contribution of nurses in primary health care towards the high standard of health which Hong Kong people enjoy today.

She said the Nursing Seminar provided an opportunity for the nurses to share with participants their aspiration for "Health for All" through improved or new approaches in delivering client-oriented, quality health care.

3

- 6 -

She hoped that through the exchange of views and experience between local and international nursing experts, new opportunities for nurses in primary health care in Hong Kong could be identified.

About 400 nurses and healthcare professionals have participated at the seminar. Among the guest speakers was Regional Adviser in Nursing of the World Health Organisation, Mrs Lorraine Kerse.

Also officiating at the opening ceremony were Legislative Councillor, Mr Michael Ho, and Department of Health’s Principal Nursing Officer, Ms Margaret Wong.

End

Talk on Bermudan history *****

A talk on the history of Bermuda from settlement in 1612 to the end of coastal defence in 1956 will be held at 6 pm next Thursday (June 13) at the Antiquities and Monuments Office (AMO), 136 Nathan Road, Tsim Sha Tsui.

It will be delivered by Dr Edward Harris who is the authority in the subject. Dr Harris has been the Director of the Bermuda Maritime Museum since 1980. He serves in several government advisory committees such as the Bermuda Historical Wrecks Authority and the National Parks Commission.

He has conducted several archaeological excavations in Bermuda. In 1994, he obtained the Palmetto Award, the highest accolade of the Bermuda National Trust for preservation work.

The 45-minute talk will be conducted in English. Seats are available on a first-come-first-served basis.

Further information can be obtained from AMO on 2721 2326.

End

7

Labour publications available at six main offices ♦ * * * ♦

Members of the public can obtain 16 popular publications produced by the Labour Department in six of its major offices throughout the territory.

These publications cover the services being provided by different divisions of the department and also major labour legislation on employment benefits and industrial safety.

The 16 major publications are:

* A Concise Guide to the Employment Ordinance

Catalogue on Resources Materials of Careers Information Centre (Chinese only)

Guide to Employees' Compensation Legislation

* How to Apply for Employees' Compensation and related Procedures (Chinese only)

Leaflet on Local Employment Service (Chinese only)

* Notification of Workplaces

A Guide to the Construction Sites (Safety) Regulations (Chinese only)

* The Labour Department Offers You Its Services

* Performance Pledge 1996

* Job Matching Programme - Do you have recruitment needs? (Chinese only)

* Job Matching Programme - Are you looking for a job? (Chibese only)

* Labour Department General Enquiry Telephone Service

* Guide to Occupational Diseases Prescribed for Compensation Purposes

* Code of Practice for Pressure Equipment Owners (Chinese only)

- 8 -

* Employ the Disabled : Give them a chance to prove themselves (Chinese only)

* Services of the Selective Placement Division (Chinese only)

"By putting these more popular publications at major offices, members of the public can obtain various information conveniently at one time," a Labour Department spokesman said.

The addresses of the six major offices are as follows:

* 16th floor, Southorn Centre, 130 Hennessy Road, Wan Chai

* fourth floor, Canton Road Government Offices, 393 Canton Road, Yau Ma Tei

it; ••

* sixth floor, Kowloon East Government Offices, 12 Lei Yue Mun Road, Kwun Tong

* second floor, Tsuen Wan Government Offices, 38 Sai Lau Kok Road. Tsuen Wan

* first floor, Tuen Mun Government Offices, 1 Tuen Hi Road, Tuen Mun

* fifth floor, Citylink Plaza, 1 Shatin Station Circuit. Sha Tin

"Apart from these six offices, publications on certain services and legislation are also available from related divisional and sub-divisional offices," the spokesman said.

Enquiries about the distribution of the publications can be made on 2852 4125.

End

Salt water cut in Tai Po

*****

Flushing water supply to some premises in Tai Po Industrial Estate will be temporarily suspended from 10 pm on Tuesday (June 11) to 10 am on Thursday (June 13) for the checking of the flushing water supply system.

The suspension will affect premises in Dai Fat Street, Dai Fu Street, Dai Shui Street, Dai Kwai Street, Dai King Street, Dai Wang Street, Dai Cheong Street, Dai Shing Street, Dai Li Street and Dai Hei Street.

End

Water cut in Yuen Long *****

Fresh and flushing water supply to some premises in Yuen Long will be temporarily suspended from 11 pm on Wednesday (June 12) to 6 am the following day to facilitate waste detection work on watermains.

The suspension will affect premises along Fan Kam Road from Lai Tau Tsim to Ta Shek Wu including Lai Tau Tsim. A Kung Tin, Ta Shek Wu Shek Tong and Ta Shek Wu.

End

Hong Kong Monetary Authority money market operations

*****

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

Opening Balance in the account 1,957 09:30 Nil

Closing Balance in the account 1,867 10:00 Nil

Change Attributable to: 11:00 Nil

Money Market Activity Nil 11:30 Nil

Laf Today -90

Laf Rate 4% Bid/6% Offer TWI 124.5 *•>-0.1* 8.6.96

End

DAILY INFORMATION BULLETIN

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

Sunday, June 9,1996

Contents Page No,

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

Parade to bid farewell to CAS Deputy Commissioner....................... 4

Volunteers wanted for rehabilitation of offenders....................... 5

New Harcourt Road post office to open soon.............................. 6

Stamps on archaeological finds of Hong Kong to be issued................ 7

Fresh water cut in Fanling.............................................. 9

1

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

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

There's a school of thought which believes that the best way of securing a smooth and successful passage for Hong Kong through the change of sovereignty next year is by avoiding saying anything which appears either to contradict Chinese officials or to raise doubts about whether courses of action which they propose are always by definition good for Hong Kong. Related to this is the argument that you should never admit that Hong Kong faces this or that problem or difficulty, and that the only tolerable view of the future is one that denies that anything could possibly go amiss.

I think that all these arguments are wrong. Wrong and damaging for Hong Kong. Let me tell you why, beginning with how we should put our case to the outside world.

Most of the countries we do business with, most of those who are big investors here, most of those who share values as well as trade with us, have (as we still do) a free press and free electronic media. What happens in Hong Kong makes news in those countries. They are interested in what happens here. They may sometimes get things wrong. They might sometimes take an extravagantly extreme view of our prospects. But they can't be simply Sno-paked out of existence. We have to respond to how the world sees us with arguments which are true and which take account of common sense and decency.

So where does that leave us this summer with just 13 months to go to the big day? If you threaten to wind up Hong Kong's fairly elected legislature, don't be surprised if most of the media in the free world regard this as likely to be disruptive and to raise doubts about your intentions elsewhere.

If you say that civil servants or judges may be required to demonstrate their political loyalty, don't be surprised if the press around the world and those policy makers and investors who read about what we do, raise a collective eyebrow.

If you suggest that Hong Kong's own press can remain free provided it recognises that its freedom can only operate within political bounds set by Peking, don't be surprised if all around the world people nudge one another and say, "I told you so".

2

Hong Kong has a wonderful reputation internationally. Every comparative measure of economic performance has us among the front runners. People admire our commercial vigour, our vitality, our self-confident resilience, our responsible exercise of freedom. And because they admire us so much, they inevitably ask - "It’s terrific today; but what will it be like after 1997?”. And when they try to answer that question, which determines their confidence or otherwise, all the headlines made by some of the recent incidents I described crowd into their cuttings files or on to their computer screens.

Do you answer those worries by pretending they don't exist, by claiming - it does happen you know - that issues like civil liberties don't matter to people in Hong Kong: don't matter to people many of whom are here precisely because of the civil liberties that we enjoy and others don't?

Give people answers that bear no resemblance to reality and they don't believe you. Politely, of course. But they don't believe you. They think you're in the propaganda business, not the truth game.

There are powerful arguments to put about Hong Kong's future. The momentum of our economic success. The sound foundation on which our commercial life is based. The strength, too, of our institutions - courts, civil service, professions, charities, and so on. Our position at the heart of Asia and at the gateway of China. Above all, the sheer quality of our people. Those are, I repeat, powerful arguments. Don't discredit them by pretending that we don't have some difficult problems - not of our own making - to overcome as well.

One issue that has bubbled to the surface again recently is the question of freedom of the press. You can bet your bottom dollar that we'll be asked for more reassurance about what things will be like after 1997 as a direct result. And note well - as it used to say in books on grammar - the fuss wasn't stirred up by anything said or done by the Hong Kong Government.

A free press is guaranteed, of course, by the Joint Declaration, and again by Article 27 of the Basic Law. The guarantee in Article 27 isn't qualified in any way by the application of national Chinese law. The only Chinese laws that will be applied in Hong Kong are mentioned in Article 18 - and none of those listed touches on freedom of speech.

3

So the guarantee, you’d think, is clear. No confusion there. No room for redefining what the pledge means. No scope for wringing some new and different sense out of it.

Why does this matter?

A free press is not an end in itself. It's part of the way you secure a free and open society. The role of the press is to hold the powerful to account, to break down, break through, scramble over, tunnel under, the barriers behind which bad decisions and corrupt decisions can too easily be made in secret.

Does a vigorous press make government weaker? I don't believe it does. Government is stronger as a result because it has to think much harder about the decisions it takes. A free press also helps to underpin the rule of law which protects the weak against the strong, the individual against the state.

The free, uninhibited flow of information is essential to a sophisticated market, especially a financial market like ours in Hong Kong. A booming media industry is part of a booming modem economy. Every year new periodicals and newspapers hit our news-stands. We have more newspapers per head of population than anywhere else in the world. And we're the South East Asia home for many newspapers, magazines, news agencies from Reuters and AP to Time, Newsweek, the Asian Wall Street Journal, the Financial Times and the International Herald Tribune.

These are the signs of a free society, and the reasons for a free society. And Hong Kong will stay that way if we want it to do so, and if we make it plain that we care. As Thomas Paine wrote, "Those who expect to reap the blessings of freedom must.. undergo the fatigue of supporting it".

The same point was put very eloquently at the beginning of the week by a magazine, read all around the world, which recently found itself in the middle of a trumped-up controversy. What it said bore on the points I've made today - on credibility and on advocacy. Some of it is worth repeating.

4

"Hong Kong and its people - those same people who have done so much, and who have come to cherish their freedom - now face an uncertain future. The world cannot know how the territory will be governed when the time and place that Britain borrowed from China reverts to Beijing's control next year. It is true beyond the need for argument that a happy Hong Kong must be a prosperous one, and that prosperity will be damaged if Hong Kong is seen to challenge, at every turn, the new realities of Chinese rule. To the extent that the business community make that point, its members are right to do so. But it is also true that the prosperity of Hong Kong depends on those hallmarks of capitalism that, so far in the world's history, seem to be most easily guaranteed by open accountable governments - free trade; the sanctity of contracts and property rights; an intolerance of corruption; the right to criticise those placed in positions of power; the free flow, unimpeded by government fiat, of information. If Chinese rule guarantees all that, it will win and deserve the world's plaudits. But China - and for that matter, those in Hong Kong's business community - must also realise one other thing. After 1997, the whole world will be watching. That is Hong Kong’s destiny, a fate bequeathed it by the place it has won in the heart of any who have visited there. Hong Kong, said John Major this year (a little late, but better late than never), "will never walk alone". Count us among those who will be walking alongside."

The magazine was "Newsweek". Like the rest of the world's press, it will be watching what happens to what it calls "one of the world's special places". Special, very special, indeed.

End

Parade to bid farewell to CAS Deputy Commissioner *****

Deputy Commissioner (Operations) and Chief Staff Officer, Civil Aid Services (CAS), Mr F S Kavanagh, will retire from the service on June 29, 1997. He will proceed on his pre-retirement leave on June 29 this year.

A parade with 300 CAS officers, members and cadets was organised to bid him farewell today (Sunday) at the Gun Club Hill Barracks, Kowloon, and the event was well attended by guests and members of the Services.

Mr Kavanagh arrived at 11 am to take the salute and to inspect the parade. After the ceremony, he joined the guests and CAS officers and members for a farewell reception held at the Officers' Mess.

5

Mr Kavanagh joined CAS on January 3, 1989, as Chief Staff Officer and was appointed Deputy Commissioner (Operations). Before that, he had served in the Royal Hong Kong Police Force for over 28 years.

He joined the Hong Kong Government on October 30, 1960, and has served the Hong Kong community for over 35 years with distinction.

End »

Volunteers wanted for rehabilitation of offenders * ♦ ♦ ♦ ♦

The Social Welfare Department is looking for volunteers to help with the rehabilitation of offenders.

People aged 21 or above, with secondary school education, mature personality and an interest in the rehabilitation of offenders, are invited to join the Volunteer Scheme for Probationers.

A spokesman for the department said today (Sunday) that the scheme aimed to promote interest and concern of the public towards the rehabilitation of offenders.

A total of 539 enthusiastic volunteers have joined the scheme since it was introduced in 1976.

Under the scheme, volunteers will assist offenders in the following ways:

acting as tutor for the offender who has problems with school work;

* guiding the offender in proper use of leisure time and directing his

interest into wholesome social, cultural and recreational activities; and

* providing friendship to offenders, especially those without family support, and sharing with them life experience so that they can feel acceptance by the community.

"The period of service is normally six months, but the volunteer may serve for further terms for the same or other offenders.

6

"Selected volunteers will be given a thorough briefing before they start to assist the offender through the probation officer," the spokesman said.

Application forms are now available at all Probation Offices of the Social Welfare Department. Completed forms should be returned on or before June 30.

Further enquiries about the scheme may contact the Sha Tin Probation Office on 2603 4171.

«

End

New Harcourt Road post office to open soon ♦ * ♦ ♦ ♦

A new post office at Harcourt Road, Central, will open to the public at 9.30 am on June 18 (Tuesday), the Postmaster General, Mr Robert Footman, announced today (Sunday).

The new office, located at GIO to G15, Hutchison House, 10 Harcourt Road, is to replace the existing post office on the ground floor of Beaconsfield House at 4 Queen's Road Central. The Beaconsfield House Post Office will close for business at 6 pm on Friday (June 14).

The business hours and telephone numbers of the new post office will be the same as those of the Beaconsfield House office.

The Harcourt Road Post Office will continue to operate as a philatelic office and a newly designed pictorial postmark featuring the Tea Museum will be introduced for its use from June 18.

A special hand-back service will be available on Friday at the Beaconsfield House Post Office for unregistered covers with full postage prepaid, bearing the superscription "Last Day Cover" and a local address; and on June 18, at the new office for covers bearing the superscription "First Day Cover".

These privately prepared covers will be accepted over the counter, impressed with the normal post office datestamp or the philatelic pictorial datestamp, depending on the collector's choice, and handed back to the person presenting them.

7

Mr Footman said on June 18, the design of the pictorial postmarks currently in use by the Philatelic Bureau and seven philatelic offices would also be changed to incorporate the Chinese characters of "Hong Kong" and the office code in alphabets, in line with the pictorial postmark for the Harcourt Road Post Office.

The seven philatelic offices are:

Airport Post Office

Granville Road Post Office

General Post Office

Peak Post Office

Sha Tin Central Post Office

Tsim Sha Tsui Post Office

Tsuen Wan Post Office

On the same day, a hand-back service will be provided at these offices and the Philatelic Bureau at 38 Pier Road, first floor, Central, for all covers bearing the "First Day Cover" indication.

End

Stamps on archaeological finds of Hong Kong to be issued *****

A set of special stamps on the theme of archaeological finds of Hong Kong will be issued on June 26, the Postmaster General, Mr Robert Footman, announced today (Sunday).

The set comprises four denominations depicting four archaeological finds excavated from various sites in the territory.

The $1.20 stamp shows a painted pottery basin with perforated ring-foot from Chung Hom Wan, Hong Kong Island, and the $2.10 stamp depicts a stone ’yue’, or ceremonial stone axe, from Yuen Long, Tuen Mun, the New Territories.

The $2.60 stamp shows a stone ’ge’ or stone halberd, from Tai Wan, Lamma Island, while the $5 stamp depicts a pottery tripod with cover from the Lei Cheng Uk Han Tomb, Sham Shui Po, Kowloon.

8

The stamps will be displayed for the advance information of the public at the General Post Office, Tsim Sha Tsui Post Office, Tsuen Wan Post Office and Sha Tin Central Post Office from Wednesday (June 12).

Official first day covers will be on sale at $1 each at all post offices on the same day. Advance orders for serviced first day covers will be accepted from that day to June 19 at all post offices. The minimum number of serviced first day covers per order is five.

A restriction of 100 stamps of each denomination (viz 100 sets of stamps) per customer queuing will be imposed on the first day of issue on June 26.

A presentation pack containing the four stamps will also be on sale at $19 each at all post offices on the same day.

Serviced first day covers affixed with the set of stamps and cancelled with the first day of issue postmark will be on sale at $14.40 each on June 26 at the following eight philatelic offices:

Airport Post Office

General Post Office

Granville Road Post Office

Harcourt Road Post Office

Peak Post Office

Sha Tin Central Post Office

Tsim Sha Tsui Post Office

Tsuen Wan Post Office

Hand-back service will be provided at all post offices on June 26 to official and privately made covers bearing the first day of issue indication.

The stamps were designed by Mr Ian Leung and printed by Joh Enschede of the Netherlands.

End

9

Fresh water cut in Fanling ♦ ♦ ♦ ♦ ♦

Fresh water supply to some premises in Fanling will be suspended from 11 pm on Wednesday (June 12) to 6 am the following day to facilitate waste detection work on watermains.

The suspension will affect premises at Jockey Club Road between North District Office and the junction of access to Fanling Hospital, Ling Shan Tsuen and Pik Fung Road, Fanling.

End

DAILY INFORMATION BULLETIN

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

Monday, June 10,1996

Contents EageJSiL

HK-USA promotion travels on to California............................. 1

Government committed to promote widest use of Internet................ 2

Successful control of infectious diseases hard-earned: SHW............ 4

Tai A Chau Detention Centre to close in September..................... 5

199 VMs depart on orderly repatriation flight......................... 7

Monitors’ Report submitted to CS...................................... 7

Public consultation sessions on special education report.............. 7

Fund for recreation invites applications for grants................... 8

Glimpses of the "old” through the eyes of the ’’young"................ 9

35 new building plans approved in April............................... 10

Overseas United Kingdom electors...................................... 11

Arrangements for holiday clinic service............................... 11

Fresh water cut in Tai Po............................................. 12

Water storage figure.................................................. 12

Hong Kong Monetary Authority tender results........................... 13

Hong Kong Monetary Authority money market operations.................. 13

1

HK-USA promotion travels on to California

*****

The Chief Secretary, Mrs Anson Chan, and members of the HK-USA delegation arrived in Los Angeles from Dallas, Texas, on Saturday evening (June 8, US West coast time) to launch the third and final leg of the HK-USA promotion. The promotional tour had kicked off in New York at the beginning of the week.

The highlight of the weekend in Los Angles was the opening of the Hong Kong Film Festival entitled "American Film Institute Tribute to Hong Kong Cinema" today (Sunday, June 9) at Paramount Studios in Hollywood. The festival, co-organised by the American Film Institute and the Hong Kong Motion Picture Industry Association, and supported by Mr Raymond Chow of Golden Harvest, presents eight movies to the American audience, with Stage Door (Hu-Du-Men) as the featured film for the opening production.

President of the American Film Institute, actor Charlton Heston, introducing the Chief Secretary, said movies were the international language and it is important to honour the Asian film community. "Hong Kong for some time has been a major centre of film production," Mr Heston said. "This creative exchange is very important for film makers. We are pleased to celebrate the international connection," he added.

Mrs Anson Chan told the audience that Hong Kong is the world's second largest exporter of films, second only to the USA itself. "Dubbed the 'Hollywood of the East' the territory has been responsible for titles such as "Farewell to My Concubine" and "Summer Snow" which have claimed top awards at prestigious international festivals. At the same time, other action adventures, like "Cannonball Run" and "Rumble in the Bronx" are proving box office smashes," Mrs Chan said.

The ceremony, attended by many members of the Hollywood film community, also featured appearances by actresses Josephine Siao and Anita Yuen and director Shu Kei. Other guests included Mr Raymond Chow of Golden Harvest, film directors John Woo, King Hu, Kirk Wong and Stanley Tong, and artists Chow Yun Fat, Jenny Woo, Dragonson Yin, Christy Chung and Lisa Lu. Screenwriter Raymond To, choreographer Bruce Law and producer Terence Chang were also present.

The programme in Los Angeles will continue on Monday, June 10, with several calls by Mrs Chan on business and civic leaders and a gala dinner to celebrate the Hong Kong-USA promotion in Los Angeles.

Prior to leaving Texas, Mrs Chan officiated at the first in a series of Hong Kong Trade Development Council fashion shows entitled "Hong Kong salutes Fashionable Dallas", held in conjunction with Market Week at the Dallas International Apparel Mart.

2

Models from both the US and Hong Kong presented the latest fashions and fashion accessories by Hong Kong designers and label manufacturers such as Walter Ma, Young Beat and City Slickers, as well as by Dallas companies offering the territory's fashions at the Apparel Mart during the week.

Welcoming Mrs Chan to the Dallas Fashion Week, the executive director of the Texas Department of Commerce Ms Brenda Arnett said that the State of Texas, which has the second largest fashion industry in the US, exported more than US $1 billion worth of goods (including garments) to Hong Kong last year.

Mrs Chan said Hong Kong, once the workshop of the world's garment industry, is rapidly taking its place among the most famous international fashion centres.

"The territory's designers and label manufacturers now supply apparel to leading department stores and boutiques around the world," Mrs Chan said, adding that Hong Kong, with its unique East-West cultural blend, is fast gaining a reputation for creativity and original design.

The fashion shows concluded three days of Hong Kong celebration in Dallas, including a business seminar and luncheon, a gala dinner, a Hong Kong Chinese Orchestra concert and a film festival.

The promotion is supported by major businesses in Hong Kong, including Cathay Pacific Airways, Hong Kong Bank, Hutchison Whampoa Ltd, Marco Polo Hotels and the Sino Group.

End

Government committed to promote widest use of Internet ♦ ♦ ♦ ♦ ♦

The Financial Secretary, Mr Donald Tsang said today (Monday) that the Government would do its best to maintain Hong Kong's position as a leading world services and financial centre by ensuring that Hong Kong business has every opportunity to move forward in Internet use.

Speaking at a Foreign Correspondents' Club luncheon, Mr Tsang said the Government was among the leaders among governments of major world economies in applying Internet technology.

"Our government is deeply 'into' Internet. 44 government branches, departments and communities are written up on the Government's World Wide Web Page, and many have set up their own independent pages linked to the Government's main page."

3

"This is the result of the Government's efforts to bring better services to our public and our clients world-wide, using up-to-date technology.

The Financial Secretary said it was, in comparative terms, reasonably cheap to provide the information service through the Internet, and to achieve an unrivalled level of transparency of Government activities generally.

He said the Government is looking at ways to further improve its service on the Internet.

"We have to remember that the very great majority of our customers - and often those in greatest need - don't have access to the Net."

"A revolution could take place in provision of Government services if we were in a position to accept input and questions through the Internet to the same extent that we can use the Net to put information out."

In doing so, Mr Tsang, said the Government would take into account the need to protect the security of personal information and the network capacity.

"I think it's important for the sake of public trust in us that we shouldn't encourage the public and business to entrust confidences to us until we can offer a strong assurance of security for their information."

"The system however is fast improving. I am sure that the day will come, not too far away, when we can feel comfortable about Internet security."

Regarding the infrastructure to support Internet services, Mr Tsang said Hong Kong boast one of the best telecommunications infrastructures in the world.

"Our telecommunications policies seek to ensure that our infrastructure continues to improve and anticipates developments such as the Internet."

"That is why we have as a matter of policy taken great strides in recent years in liberalising our telecommunication sector."

Mr Tsang said a consultation exercise is being conducted to see how best to structure prices for local telephone services in Hong Kong.

"This should let us see the way forward to providing an improved base for Internet services, both by the Government and by the private sector."

"We must start thinking about making Internet terminals available not only through schools and universities, but also libraries and public enquiry centres."

4

Internet terminals like ATM machines at street comers with links to Government information and services would also be a possible option, Mr Tsang said.

"I think there is room also for district organisations to become involved in providing access to Internet terminals and helping in disseminating information that their local communities want,” he added.

Mr Tsang said the Government is also actively reviewing how to improve its support for the business sector.

"Hong Kong’s trade in services is growing, and I can see a time when more and more companies see the benefits of doing business on the Internet."

They would need the assurance of security and an assurance that if they invest in the development of Internet-based business, Hong Kong’s telecommunications network would be able to keep up with their demands, he said.

Mr Tsang said whilst the Government will need to overcome the challenges that lie ahead of the development of Internet, for the immediate term, he saw a very rapid increase in the Government’s services to the public over the Internet.

"Already, we are experimenting to make Hong Kong’s laws available on the net, to put consultation papers on the World Wide Web and to allow the public to down-load government standard forms from Internet sites."

"In the longer term, I believe that the difficulties we now anticipate with security and network capacity will be overcome."

End

Successful control of infectious diseases hard-earned: SHW

*****

Hong Kong’s success in the control of infectious diseases is hard-earned, the Secretary for Health and Welfare, Mrs Katherine Fok, said at the opening of the 7th International Congress for Infectious Diseases this (Monday) evening.

"This has been brought about by diligent and unrelenting efforts by people across many disciplines and sectors over a prolonged period of time," she said.

Mrs Fok noted that over the years, Hong Kong had witnessed significant improvements in the living environment brought about by an adequate supply of clean water and enhanced sanitation measures and the reinforcement of health surveillance through a group of capable, committed and hardworking health care workers.

5

Better education has also enabled the public to understand the benefits of a nutritious and healthy diet.

But this success is not possible without the healthy economic growth which has allowed Government to devote resources to these areas - the share of Government budget spent on health care has in fact increased from 11.8 per cent in 1991-92 to 13.8 per cent in 1996-97.

’’Despite an achievement to date, we cannot afford to relax the struggle between man and microbes which is far from over,’’ Mrs Fok warned, quoting AIDS and pulmonary tuberculosis as two examples.

The Secretary believed that the Congress, the first to be held in South East Asia, would provide a unique opportunity for experts from different countries to exchange views on latest developments in the field of infectious diseases, to reestablish professional contacts and to foster international collaboration.

End

Tai A Chau Detention Centre to close in September ♦ ♦ ♦ ♦ ♦

The Government announced today (Monday) that the Tai A Chau Detention Centre for Vietnamese migrants (VM) will be closed in September.

"As the VM population decreases, it is a logical step to consolidate the population into fewer camps under unified management of the Correctional Services Department (CSD),’’ a Government spokesman said.

"The current total VM population of 16,000 does not justify maintaining three camps."

"The annual management contract and related costs for maintaining Tai A Chau, now holding 5,600 VMs, amount to over $55 million a year," he said.

The spokesman urged all the VMs to join the voluntary repatriation programme as soon as possible, certainly before June 30, the deadline for application for the US "Resettlement Opportunity for Vietnamese Returnees Scheme".

"Their only future lies in returning to Vietnam," he said.

6

The Tai A Chau population are all southern Vietnamese. They will be transferred to Whitehead Detention Centre in September.

In the meantime, northern VMs still in Whitehead in September will be moved to the High Island Detention Centre, and any remaining southern VMs in High Island will be transferred to Whitehead.

After the transfers, High Island Detention Centre will be used exclusively to accommodate northern VMs and Whitehead Detention Centre will be designated exclusively for southern VMs.

As announced by the Secretary for Security last month, security measures are being stepped up in Whitehead Detention Centre. These include reinforcing the perimeter fence, setting up a reinforced secure area, and demolishing certain structures to facilitate security operations. The works should be completed by August.

The Correctional Services Department will also beef up the manning of the detention centre.

Security at High Island Detention Centre will also be improved.

Noting that the Orderly Repatriation Programme is now conducted at a monthly rate of at least 600 and more VMs have volunteered to return, the spokesman said the camp population was expected to be reduced at a faster pace over the coming months.

Tai A Chau is an outlying island situated to the south-east of Lantau Island. The detention centre commenced operation in February 1991 with a capacity of 9,600. It once held a peak population of almost 9,700 in November 1991.

The Tai A Chau Centre is currently managed by Hong Kong Housing Services for Refugees, a non-profit making company which previously managed the Pillar Point Refugee Centre for the UNHCR.

"We are grateful to Hong Kong Housing Services for Refugees for their valuable assistance in handling the mass influx of VMs during the difficult times in 1991, and for managing Tai A Chau since it opened," the spokesman said.

End

7

199 VMs depart on orderly repatriation flight ♦ ♦ ♦ ♦ ♦

A group of 199 Vietnamese migrants (VMs) returned by air to Hanoi, Vietnam, today (Monday) on the 40th flight under the Orderly Repatriation Programme (ORP).

All of the returnees, comprising 97 men, 50 women, 24 boys and 28 girls, are from Central and South Vietnam.

The majority of them arrived in Hong Kong in 1991, with the remaining in 1989 and 1990.

The group brought to 3,328 the total number repatriated on ORP flights since November 1991.

End

Monitors' Report submitted to CS ♦ ♦ ♦ * ♦

The monitors appointed to observe the Orderly Repatriation Programme operation this (Monday) morning have submitted their report to the Chief Secretary.

The two monitors comprised a non-official Justice of the Peace, Mr Chow Chun-fai: and a representative from a non-governmental organisation, Ms Madeleine Slavick from Oxfam.

End

Public consultation sessions on special education report ♦ ♦ ♦ ♦ ♦

The Board of Education Sub-committee on Special Education has completed a report on the review of local special education.

The report, entitled Report of the Sub-committee on Special Education, offers 70 improvement recommendations, covering 10 areas in special education.

Public consultations are now under way.

8

Two public consultation sessions will be conducted on June 12 (Wednesday) at the Hall, Grantham Campus of the Hong Kong Institute of Education at 42 Gascoigne Road, Kowloon, and June 13 (Thursday) at Room G01, Hong Kong Teachers' Centre at 4 Pak Fuk Road, North Point, respectively. Both sessions will be held between 6 pm and 8 pm.

Presenting at the consultation sessions to hear views and suggestions will be Dr Tam Man-kwan, chairman of the Board of Education, and Professor Leslie Lo, chairman of the Sub-committee on Special Education.

School sponsors, serving school principals and teachers, practitioners in special education sector and related fields, and members of the public are invited to attend to give views and suggestions.

Copies of the report and the executive summary are being distributed at the Education Department's Reception Counter on the 10th floor, Wu Chung House, 213 Queen's Road East, Wan Chai.

In addition, the Board of Education wishes to remind the public to submit their views and suggestions to Mrs Fanny Lam, the Board Secretary, at Room 1123, Education Department Headquarters, Wu Chung House, on or before July 8, 1996 (Monday).

Enquires about the consultation sessions may be directed to Mrs Mabel Mak, Senior Executive Officer on 2892 5793.

End

• Fund for recreation invites applications for grants

*****

The Sir David Trench Fund Committee is inviting applications for grants under its "1996 Recreation and Sports Activities for People in Employment" scheme.

The scheme aims to provide financial assistance to organisations for the purchase of equipment or instruments to encourage people in employment to take up recreational and sports activities.

Applicants must be registered trade unions or non-profit making bodies registered under the Societies Ordinance or the Companies Ordinance.

9

Application forms are obtainable from the Sir David Trench Fund Committee Secretariat at the Broadcasting, Culture and Sport Branch, Room 4015, 40th floor, Revenue Tower, 5 Gloucester Road, Wan Chai. They are also available at the Hong Kong Council of Social Service, the Social Welfare Department, and the District Offices of the Home Affairs Department.

Completed application forms should be sent to the Secretariat on or before August 31 this year. Further enquiries can be made on 2594 5660.

End

Glimpses of the "old" through the eyes of the "young" ♦ * ♦ ♦ ♦

Thirty-nine winning entries of a students' drawing competition on Hong Kong's historical monuments are now on display at an exhibition at the Antiquities and Monuments Office (AMO) of the Broadcasting, Culture and Sport Branch until August 19.

The competition, which was organised as part of the School Heritage Festival organised by the AMO and the Education Department in March this year, attracted more than 830 entries from primary and secondary students. *

The drawings covered Chinese and Western historical buildings and were portrayed in different drawing material such as acrylic, water colour, Chinese ink, poster colour and crayon.

The winning entries fully demonstrate the participants' appreciation and concern of the local cultural heritage. Some are also accompanied by a brief introduction by the artists to give a better understanding of the source of inspiration.

The exhibition is open to the public at the gallery of AMO at 136 Nathan Road, Kowloon, between 9.30 am and 5 pm from Mondays to Saturdays, except for Tuesdays. The opening hours on Sundays and public holidays are between I pm and 5 pm.

10

Meanwhile, to complement the exhibition, the AMO will also organise a series of outdoor drawing tours to selected historical monuments for students and families on Saturdays between June 29 and August 3.

Places to be visited include the former Kowloon British School, Marine Police Headquarters, Old Supreme Court, Flagstaff House and Royal Observatory. Details can be obtained on 2721 2326.

End

35 new building plans approved in April *****

The Buildings Department approved 35 building plans in April this year.

Of the plans, 11 are for Hong Kong Island, seven for Kowloon and 17 for the New Territories.

The approved plans include 10 for apartment and apartment/commercial developments, nine for commercial developments, 10 for factory and industrial developments, and six for community services developments.

In the same month, consent was given for work to start on 42 building projects, which involve 99,094 square metres of usable domestic floor area and 84,883 square metres of usable non-domestic floor area.

During the same period, the Department also issued 33 Occupation Permits -seven for Hong Kong Island, four for Kowloon and 22 for the New Territories.

Of the buildings certified for occupation in the month, the usable floor areas for domestic and non-domestic uses are 130,935 square metres and 92,354 square metres respectively.

The declared cost of new buildings completed in the month totalled about $3,006 million.

In addition, 24 demolition consents involving 50 buildings and structures were issued.

The Buildings Department's Control and Enforcement Division received 1,017 complaints of unauthorised building works, and issued 340 Removal Orders on unauthorised works.

End

11

Overseas United Kingdom electors

*****

Forms and explanatory leaflets for registration as an overseas elector in UK Parliamentary and European Parliamentary Elections may be obtained from the Hong Kong Immigration Department, a spokesman for the department announced today (Monday).

"British citizens living in Hong Kong may contact the Information Office of the Immigration Department on second floor, 7 Gloucester Road, Wan Chai, Hong Kong by writing or in person to obtain the forms and explanatory leaflets," he said.

Under the Representation of the People Act of 1989, the qualifying period for the right to vote for people living abroad has been extended from five to twenty years.

That means if a British citizen left the UK as long ago as October 1976, he can still vote. He is no longer required to declare an intention to return to the UK and the vote will be cast in the constituency in which he or his family were registered before leaving the UK.

People who left the UK before they were old enough to be included on the Electoral Register may register as overseas electors.

"In order to qualify, potential electors will have to fill in an application form and return it direct to their Electoral Registration Office by October 10, 1996 (September 15 if they were previously residents in Northern Ireland)," the spokesman reminded.

He also appealed to British citizens for assistance in informing anyone they know living abroad about this.

End

Arrangements for holiday clinic service ♦ * * * ♦

The Department of Health announced today (Monday) that eight general outpatient clinics would be open from 9 am to 1 pm on June 16 (Sunday) and June 17, which is the Monday following the Queen's Birthday.

The eight clinics are Violet Peel Health Centre and Shau Kei Wan Jockey Club Clinic on Hong Kong Island; Kwun Tong Jockey Club Health Centre, Robert Black Health Centre, and Yau Ma Tei Jockey Club Clinic in Kowloon; and Lady Trench Polyclinic, Shek Wu Hui Jockey Club Clinic and Yuen Long Jockey Club Health Centre in the New Territories.

12

There will be no holiday out-patient clinic service on the Birthday of Her Majesty the Queen (June 15) and on Tuen Ng Festival (June 20).

All other general out-patient and evening clinics will be closed during the four days of holidays.

End

Fresh water cut in Tai Po

*****

Fresh water supply to some premises in Tai Po market will be suspended from 11 pm on Thursday (June 13) to 6 am the following day to facilitate waste detection work on watermains.

The suspension will affect all premises bounded by Kwong Fuk Road, Plover Cove Road, Tung Cheong Street and Po Yick Street.

End

Water storage figure

*****

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 85.2 per cent of capacity or 499.268 million cubic metres.

This time last year the reservoirs contained 368.44 million cubic metres of water, representing 62.9 per cent of capacity.

End

13

Hong Kong Monetary Authority tender results ♦ * * ♦ ♦

Tender date 10 June 1996

Paper on offer EF notes

Issue number 5106

Issue date 11 June 1996

Maturity date 11 June 2001

Coupon 7.23 PCT

Amount applied HK$ 1,832 MN

Amount allotted HKS500 MN

Average price accepted (yield) 99.48 (7.49 PCT)

Lowest price accepted (yield) 99.48 (7.49 PCT)

Pro rata ratio About 50 PCT

Average tender price (yield) 99.40 (7.51 PCT)

End

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

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

Opening balance in the account 1,867 0930 +97

Closing balance in the account 1,860 1000 +97

Change attributable to : 1100 +93

Money market activity +93 1200 +93

LAF today -100 1500 +93

1600 +93

LAF rate 4.00% bid/6.00% offer TWI 124.5 *+0.0* 10.6.96

14

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.12 2 years 2805 6.30 99:88 6.46

1 month 5.17 3 years 3904 6.30 98.89 6.84

3 months 5.28 5 years 5103 6.75 97.84 7.42

6 months 5.49 7 years 7305 7.60 99.59 7.82

12 months 5.80 5 years M502 7.30 99.19 7.66

Total turnover of EF bills and notes - $25,112 million

Closed June 10, 1996

End

DAILY INFORMATION BULLETIN

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

Tuesday, June 11,1996

Contents Page No.

Legal services reforms to be submitted to LegCo..................... 1

Revision of postage rates........................................... 3

Tai A Chau Detention Centre to be closed............................ 5

CS continues to promote HK in Los Angeles........................... 6

External trade statistics for April.............................

Dialogue to explore possible changes in Hong Kong Telecom.......... 17

Majority satisfied with civil servants' working attitude........ 18

Appointment to Hong Kong Arts Development Council.................. 19

Asia maritime administrations forum held in Hong Kong.............. 19

World Customs Organisation Conference meets in Hong Kong........... 20

Restricted banking licence to Pacific Finance granted.............. 21

Man fined $ 150,000 for possessing musk grain...................... 22

Erection of unauthorised structures warned......................... 23

Seminar on environmentally-friendly pest control methods........... 23

Month-Long festival for Wan Chai residents......................... 24

Hong Kong Monetary Authority tender results........................ 25

Hong Kong Monetary Authority money market operations............... 26

1

Legal services reforms to be submitted to LegCo

♦ ♦ ♦ ♦ ♦

A Bill to give effect to proposals for improvements to legal services, including the abolition of scale fees for conveyancing work, will be published this week.

A spokesman for the Legal Department said today (Tuesday) that the Attorney General, Mr Jeremy Mathews, had promised to introduce this legislation within the current legislative session when he announced the results of the consultation exercise on legal services in February.

The Legal Services Legislation (Miscellaneous Amendments) Bill 1996 will be gazetted this Friday (June 14) and introduced into the Legislative Council on June 26.

In his earlier announcement, the Attorney General had said legislation would be prepared to abolish scale fees in respect of conveyancing work. He also said if, before the legislation was introduced into the Legislative Council, the Law Society made alternative proposals that were fair to consumers and were not anti-competitive, the Administration would give them careful consideration.

From the Law Society’s response to the Consultation Paper on Legal Services published last year, and subsequent correspondence with the Attorney General, the Administration had expected that the proposals that the Law Society would eventually put forward would:

contain specific proposals in respect of the fees for various types of transaction e.g. project conveyancing, and conveyances where a solicitor acts in the purchase and mortgage of the property; and

be supported by detailed empirical data, including the report prepared by its accounting consultants.

The spokesman noted that on May 17, the Law Society submitted its proposals to the Administration in the form of a position paper, suggesting that the appropriate way in which to address the problem would be for the Costs Committee to be reconvened to determine the acceptable level and structure of the fee system, without producing any specific proposals supported by empirical data.

’’The Administration has been given nothing to evaluate,” the spokesman said.

"Except a proposal that the Costs Committee, a body that would not meet in public and half of whose members are from the Law Society, should decide the level and structure of the fee system."

2

The Administration would be abdicating the responsibility it has assumed of ensuring that consumers are properly protected if it accepted the Law Society’s proposal, he explained.

Apart from the abolition of scale fees, the Bill proposes that:

solicitors should be permitted to incorporate their practices, subject to proper safeguards;

* the Law Society should be prohibited from creating non-statutory mandatory fee scales, and the existing non-statutory scale in respect of probate work should be abolished;

solicitors should be required to pay interest to clients, where it is reasonable to do so, in respect of clients’ money held by them;

* the Law Society should be given the power to make rules allowing solicitors to practise in multi-disciplinary practices;

contractual provisions under the Consent and Non-consent Schemes requiring a buyer to pay the seller’s legal costs should be made legally invalid; and

* the status of Queen’s Counsel should, under the name of Senior Counsel, be retained.

Since solicitors are to be permitted to incorporate, it is considered that foreign lawyers should also be permitted to incorporate, and the Bill so provides. Similarly, as the Bill provides for rules to be made permitting solicitors to enter into multidisciplinary practices, it also provides for rules to be made regulating notaries public who practise in multi-disciplinary practices.

The Bill also proposes to broaden the composition of the Costs Committee, which is empowered to make rules, with the prior approval of the Chief Justice, to provide for the remuneration of solicitors in respect of non-contcntious business. The proposal is for amending the constitution of the Committee so that, in addition to the current membership, it will include four to six other persons.

3

At least one of these must be someone who represents the interests of consumers of legal services, and the others must have substantial experience in banking, accounting or some other commercial activity. The effect will be that some members will represent the solicitors profession or consumer interests, and others (including the representatives of the Judiciary) will act as independent arbiters.

The Bill also contains minor amendments to the provisions in the Legal Practitioners Ordinance dealing with the Barristers Disciplinary Tribunal, to overcome practical problems that have emerged since the provisions were enacted in 1992.

End

Revision of postage rates * ♦ ♦ ♦ ♦

The Postmaster General, Mr Robert Footman, announced today (Tuesday) details of the new postage rates to take effect on September 2.

Commenting on the revised rates, Mr Footman said: ’’Operating costs have increased over the past 15 months due to inflation, increased staff costs and higher payments to overseas postal administrations. We have to increase our rates to meet these costs, and to fund further improvements in service.

’’The overall weighted average increase for postage rates will be 8.7 per cent, which is 0.4 per cent below inflation since the last increase in June 1995. In this way, we are able to pass on some benefit to our customers. We now project a return of some 7.6 per cent on our assets this year.

"Local and surface mail services have long operated at a deficit. These services are currently being cross-subsidised by other services. To reduce cross-subsidisation, the increases for local mail and surface mail will be 8.8 per cent and 8.6 per cent compared with air mail at 8.1 per cent.

"After the revision, the local and surface mail will continue to operate at a deficit, but a smaller one. Our three core services, taken together, will more or less break even."

Mr Footman said even after these increases, Hong Kong postal charges would remain among the lowest in the industrialised world.

"Given that postage constitutes only a small proportion of consumer expenditure, the increases are unlikely to have any significant impact on general inflation," he added.

4

He said: "We need to generate a reasonable return, subject to any postage rates increase being broadly in line with inflation, to be sure that we can invest in our future.

"Our investment programme for the next five years is some $824 million, including for new and reprovisioned premises, the New Air Mail Centre, plant and machinery, new services and new vehicles.

"This investment programme will help us improve our productivity, as well as our quality of service. On productivity, investment in culler facer cancellers, track and trace, and the new air mail centre will save us some 83 posts by 1998."

After the revision, the basic rates for local letters and printed papers will be increased by 10 cents, i.e. from $1.20 to $1.30 for letters, and from $1.10 to $1.20 for standard printed papers. For surface letters and printed papers to China, Macau and Taiwan, the basic rates will be increased from $1.50 to $1.60 and from $1.30 to $1.40 respectively.

For surface mail to other countries, zones similar to air mail to reflect the difference in conveyance costs for different countries will be introduced. For Zone 1 (mainly Asian countries except Japan), the postage rates for letters up to 250g will remain unchanged. For Zone 2 (rest of the world), the basic rate will be increased from $2.30 to $2.60. For printed papers, the basic rate for Zone I will be reduced from $2.10 to $1.90, against an increase of 20 cents to $2.30 for Zone 2.

The basic weight step for air letters will be revised from 10g to 20g in order to address the problem of underpaid items. It is estimated that some 30 per cent of the letters posted at the 10g weight step are underpaid, resulting in a significant loss of revenue. For Zone 1, there will be an increase of 40 cents for letters below 10g, against a decrease of 70 cents at the 20g weight step. The combined new rate will be $2.50. For printed papers the increase is 40 cents and the decrease is 30 cents, the new combined rate being $2.00. Similar changes apply for Zone 2. For customers posting letters of less than 10g, the cheaper alternative of using aerogrammes, for which the increase will be 20 cents to $2.30, will still be available.

The current composition of our traffic to Japan will attract the new internationally agreed higher terminal dues rates. Until now Japan has been grouped with lower cost destinations under Zone I. Since the volume of traffic to Japan is high and increasing, it is necessary to reclassify Japan from Zone I to Zone 2 in order to partially recover increasing costs.

There are no proposals on this occasion to revise the miscellaneous fees and charges which include registration fees, post office box rental, redirection fee, and so on.

End

5

Tai A Chau Detention Centre to be closed ♦ ♦ ♦ ♦ ♦

In response to press enquiries, a government spokesman today (Tuesday) confirmed that in November 1988, the Security Branch did undertake to close the Whitehead Detention Centre first when the Vietnamese migrant (VM) situation improved.

He said it was most unfortunate that VMs continued to arrive in large numbers until the end of 1991, thus requiring the establishment not only of Whitehead, but also of High Island and Tai A Chau.

"Our objective now is the repatriation of the whole VM population as soon as possible. This objective is endorsed by the community at large," the spokesman said.

Unlike the VMs in other camps, those in Tai A Chau have not been made to feel the impact of the Orderly Repatriation Programme (ORP).

The result was evident for all to see, he said, adding that the pace of voluntary repatriation from Tai A Chau had been pitifully low - only 570 VMs from that camp had joined the voluntary programme over the last two years.

"There is no reason to believe that this trend will change for as long as this VM population remains in Tai A Chau," the spokesman said.

There are obvious logistical difficulties in mounting ORP operations in Tai A Chau. The population there must therefore be moved to a mainland camp.

"If we are to meet our repatriation objectives, we have no option but to go ahead with the transfer of the Tai A Chau population to Whitehead," the spokesman stressed.

End

6

CS continues to promote HK in Los Angeles *****

The Chief Secretary, Mrs Anson Chan, on Monday (June 10) continued her programme with the Hong Kong-USA promotion in Los Angeles, the sixth city of her seven-city tour.

She began her day with a breakfast briefing with business leaders, arranged by the Hong Kong Association of Southern California. She also met with the editorial board of the Los Angeles Times and had meetings with the Mayor of Los Angeles, Richard Riordon, and with the Mayor of Beverly Hills, Tom Levyn.

Mrs Chan gave a speech to the faculty, graduate students and management of the University College of Los Angeles at a luncheon hosted by faculties of the Anderson Graduate School of Management, the Center for Pacific Rim Studies and the School and Public Policy and Social Research.

Her day ended with a gala dinner hosted by the Hong Kong Economic and Trade Office (HKETO) for more than 400 guests, during which Treasurer for the State of California Matt Fong and Mrs Chan both delivered remarks.

Mrs Chan said California, with its special links with Hong Kong, was a fitting venue for the Hong Kong-USA'96 promotion.

"California holds a special place in the hearts and minds of Hong Kong people.

"Not only is it the traditional gateway to the USA for trade and business, but it has also been the preferred place of education for many young Hong Kong people. And in recent years, the home of many Hong Kong families," she said.

She said the Hong Kong-USA promotion was designed to re-affirm Hong Kong's long term commitment to partnership with the USA.

"This partnership is founded solidly on a history of trade and commerce, and on a shared belief in the principles of free trade and free enterprise," Mrs Chan said.

Hong Kong had proved itself to be a valued partner of the USA, and a strategic business base for US operations in the Asia Pacific region, she added.

The dinner included a performance by the Chamber Ensemble from the renowned Hong Kong Chinese Orchestra currently touring the United States.

7

The programme in Los Angeles continues tomorrow (Tuesday) with a business seminar organised by HKETO and the Hong Kong Trade Development Council (HKTDC) in downtown Los Angeles.

Mrs Chan will give a keynote speech at the seminar luncheon.

Other activities for the day include the opening of the "Hong Kong Wonders Never Cease" exhibition at Universal Citywalk, organised by HKTDC, HKETO and the Television Broadcasts Ltd.

End

External trade statistics for April ♦ ♦ ♦ ♦ ♦

The Census and Statistics Department today (Tuesday) released detailed statistics on external trade with breakdown by country/territory and commodity for April 1996.

In April 1996, the value of re-exports registered a significant increase of 17% over a year earlier to $98.9 billion, while the value of domestic exports and imports also registered increases of 1.8% to $17.2 billion and 8.4% to $133 billion respectively.

Changes in the value of Hong Kong's re-exports to ten main destinations are shown in Table 1.

Comparing April 1996 with April 1995, the value of re-exports to all main destinations showed increases of various magnitudes : Japan (+27%), Singapore (+24%), the United Kingdom (+23%), Germany (+23%), France (+20%), China (+19%), the Netherlands (+17%), South Korea (+12%), Taiwan (+8.8%) and the United States (+8.3%). *

Comparing the first four months of 1996 with the same period in 1995, the value of re-exports to all main destinations showed increases of various magnitudes : Japan (+31%), France (+15%), the United Kingdom (+15%), China (+13%), Germany (+12%), Singapore (+12%), the Netherlands (+11%), South Korea (+5.6%), Taiwan (+1.6%) and the United States (+0.1%).

8

Taking all destinations together, the value of re-exports in the first four months of 1996 was $358.6 billion, 10% higher than that in the same period in 1995.

Table 2 shows changes in the value of re-exports of ten principal commodity divisions.

Comparing the first four months of 1996 with the same period in 1995, the value of re-exports of most principal commodity divisions rose. More notable increases were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $5.8 billion or 18%); office machines and automatic data processing machines (by $4.4 billion or 26%); clothing (by $2.9 billion or 11%); miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $2.4 billion or 6.6%); photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $2.2 billion or 15%); and footwear (by $2 billion or 11%).

Over the same period, a decrease in the value of re-exports was registered for telecommunications and sound recording and reproducing apparatus and equipment (by $1.3 billion or 3.6%).

Changes in the value of domestic exports to ten main destinations are shown in Table 3.

Comparing April 1996 with April 1995, increases were recorded in the value of domestic exports to Japan (+21%), the United Kingdom (+9.6%), China (+9.3%) and Germany (+4.6%).

Over the same period, decreases were recorded in the value of domestic exports to France (-12%), Singapore (-6.1%), the Netherlands (-5.6%), the United States (-4.9%), Taiwan (-3.7%) and Canada (-3.7%).

Comparing the first four months of 1996 with the same period in 1995, the value of domestic exports to Taiwan and the United Kingdom increased by 6.2% and 5.3% respectively. But decreases were recorded in the value of domestic exports to Singapore (-9.9%), the United States (-8.4%), Canada (-4.1%), Germany (-4.1%), the Netherlands (-4.0%), Japan (-2.3%), France (-2.3%) and China (-0.2%).

Taking all destinations together, the value of domestic exports in the first four months of 1996, at $64.7 billion, decreased by 4% over the same period in 1995. The decline was nevertheless mainly due to the particularly weak export performance in March.

9

Table 4 shows changes in the value of domestic exports of ten principal commodity divisions.

Comparing the first four months of 1996 with the same period in 1995, increases in the value of domestic exports were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $1.6 billion or 1X%): and machinery specialised for particular industries (by $168 million or 19%).

Over the same period, decreases in the value of domestic exports were recorded for office machines and automatic data processing machines (by $1.8 billion or 29%); clothing (by $837 million or 4.5%); telecommunications and sound recording and reproducing apparatus and equipment (by $621 million or 18%); miscellaneous manufactured articles consisting mainly of jewellery, goldsmiths' and silversmiths' wares (by $466 million or 7.8%); and photographic apparatus, equipment and supplies, optical goods, watches and clocks (by $270 million or 5.2%).

Changes in the value of imports from ten main suppliers are shown in Table 5.

Comparing April 1996 with April 1995, the value of imports from most main suppliers showed increases of various magnitudes : the United Kingdom (+26%), Malaysia (+25%). Italy (+18%), the United States (+15%), South Korea (+15%). Singapore (+14%), China (+12%), Germany (+7.7%) and Taiwan (+4%).

However, the value of imports from Japan decreased by 4.2%.

Comparing the first four months of 1996 with the same period in 1995. the value of imports from most main suppliers showed increases of various magnitudes : Malaysia (+30%), Italy (+24%), the United Kingdom (+21%), the United States (+15%). Singapore (+14%), Germany (+11%), China (+6.5%), South Korea (+6.3%) and Taiwan (+1.9%).

However, the value of imports from Japan decreased by 3.6%.

Taking all sources together, the value of imports in the first four months of 1996. at $480.1 billion, increased by 6.9% over the same period in 1995.

Table 6 shows changes in the value of imports of ten principal commodity divisions.

10 -

Comparing the first four months of 1996 with the same period in 1995, increases were recorded in the value of imports of most principal commodity divisions. More notable increases were registered for electrical machinery, apparatus and appliances, and electrical parts thereof (by $8.6 billion or 16%); office machines and automatic data processing machines (by $4.3 billion or 22%); telecommunications and sound recording and reproducing apparatus and equipment (by $1.9 billion or 4.2%); clothing (by $1.8 billion or 6.6%); general industrial machinery and equipment, and machine parts (by $1.7 billion or 11%); and miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods (by $1.7 billion or 5.8%).

Over the same period, a decrease in the value of imports was recorded for textiles (by $1.5 billion or 3.5%).

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 April 1996 will be released in early July 1996.

Detailed trade statistics analysed by commodity and by country/territory are published in trade statistics reports.

The April 1996 issue of the "Hong Kong External Trade" with detailed analyses on the performance of Hong Kong's external trade in April 1996 will be on sale at $129 per copy around June 24.

The report can be purchased at either the Government Publications Centre, ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong, or the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Enquiries regarding regular subscription to this report may be directed to the Publications (Sales) Office, 28th floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (Tel 2598 8194) and enquiries on trade statistics to the Census and Statistics Department (Tel 2582 4915).

11

TABLE 1 : RE-EXPORTS TO TEN MAIN DESTINATIONS *

APR APR 96 JAN-APR JAN-APR 96

DESTINATION 1996 OVER 1996 OVER

APR 95 JAN-APR 95

(HKD Mn. ) (% CHANGE) (HKD Mn.) (% CHANGE)

CHINA 37,125 + 18.9 130,662 + 12.8

UNITED STATES 18,578 + 8.3 64,503 + 0.1

JAPAN 6,474 + 27.0 25,928 + 31.0

GERMANY 3,877 + 22.7 14,760 + 12.2

UNITED KINGDOM 2,612 + 23.3 9,628 + 15.0

TAIWAN 2,304 + 8.8 8,510 + 1.6

SINGAPORE 2,296 + 23.6 8,335 + 11.7

SOUTH KOREA 1,783 + 12.4 6,382 + 5.6

FRANCE 1,645 + 20.5 5,728 + 15.1

NETHERLANDS 1,452 + 17.1 5,531 + 11.5

12

TABLE 2 : RE-EXPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION APR 1996 (HKD Mn.) APR 96 OVER APR 95 (% CHANGE) JAN-APR 1996 (HKD Mn.) JAN-APR 96 OVER JAN-APR 95 (% CHANGE)

MISCELI-ANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 11,315 + 15.0 38,727 + 6.6

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 10,387 + 32.6 38,213 + 17.9

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 9,494 + 14.3 34,817 - 3.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 8,651 + 7.3 29,878 + 2.6

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 7,013 + 12.7 28,527 + 11.2

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 5,677 + 7.6 21,313 + 26.2

FOOTWEAR 4,924 + 11.0 20,630 + 10.7

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 4,793 + 21.6 16,901 + 15.2

TRAVEL GOODS, HANDBAGS AND SIMILAR CONTAINERS 3,235 + 7.4 11,107 + 4.9

GENERAL INDUSTRIAL MACHINERY AND EQUIPMENT, AND MACHINE PARTS 3,200 + 20.0 10,423 + 9.5

13

TABLE 3 : DOMESTIC EXPORTS TO TEN MAIN DESTINATIONS

i APR APR 96 JAN-APR JAN-APR 96

DESTINATION 1996 OVER 1996 OVER

APR 95 JAN-APR 95

(HKD Mn.) (% CHANGE) (HKD Mn.) (% CHANGE)

CHINA 5,624 + 9.3 18,806 - 0.2

UNITED STATES 3,984 - 4.9 15,022 - 8.4

JAPAN 1,007 + 20.6 3,812 - 2.3

SINGAPORE 899 - 6.1 3,673 - 9.9

GERMANY 762 + 4.6 3,182 - 4.1

UNITED KINGDOM 713 + 9.6 3,032 + 5.3

TAIWAN 625 - 3.7 2,433 + 6.2

NETHERLANDS 283 - 5.6 1,399 - 4.0

CANADA 256 - 3.7 1,167 - 4.1

FRANCE 199 - 11.6 892 - 2.3

14

TABLE 4 : DOMESTIC EXPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION APR 1996 (HKD Mn.) APR 96 OVER APR 95 (% CHANGE) JAN-APR 1996 (HKD Mn.) JAN-APR 96 OVER JAN-APR 95 (% CHANGE)

ARTICLES OF APPAREL AND CLOTHING ACCESSORIES 4,366 - 2.6 17,778 - 4.5

ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 2,709 + 16.0 10,570 + 18.2

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY JEWELLERY, GOLDSMITHS' AND SILVERSMITHS’ WARES) 1,511 - 0.6 5,503 - 7.8

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 1,365 + 1.6 4,940 - 5.2

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 1,216 - 16.1 4,603 - 28.6

TEXTILE YARN, FABRICS, MADE-UP ARTICLES AND RELATED PRODUCTS 1,256 + 4.1 4,329 - 1.1

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 714 - 3.8 2,738 - 18.5

MANUFACTURES OF METALS 359 + 12.1 1,352 - 1.9

PLASTICS IN PRIMARY FORMS 430 + 6.9 1,329 - 11.0

MACHINERY SPECIALIZED FOR PARTICULAR INDUSTRIES 298 + 5.1 1,065 + 18.7

15

TABLE 5 : IMPORTS FROM TEN MAIN SUPPLIERS

SUPPLIER APR 1996 (HKD Mn.) APR 96 OVER APR 95 (% CHANGE) JAN-APR 1996 (HKD Mn.) JAN-APR 96 OVER JAN-APR 95 (% CHANGE)

CHINA 46,208 + 12.1 166,770 + 6.5

JAPAN 19,049 - 4.2 68,627 - 3.6

TAIWAN 11,221 + 4.0 39,826 + 1.9

UNITED STATES 10,491 + 15.4 37,944 •♦■14.9

SINGAPORE 7,408 + 14.2 27,421 + 13.7

SOUTH KOREA 7,140 + 14.7 24,291 + 6.3

GERMANY 2,959 + 7.7 11,126 + 10.6

MALAYSIA 3,148 + 24.6 11,115 + 29.6

UNITED KINGDOM 2,810 + 26.3 10,518 + 20.6

ITALY 2,566 + 17.6 9,957 + 24.0

16

TABLE 6 : IMPORTS OF TEN PRINCIPAL COMMODITY DIVISIONS

COMMODITY DIVISION APR 1996 (HKD Mn.) APR 96 OVER APR 95 (% CHANGE) JAN-APR 1996 (HKD Mn.) JAN-APR 96 OVER JAN-APR 95 (% CHANGE)

ELECTRICAL MACHINERY# APPARATUS AND APPLIANCES, AND ELECTRICAL PARTS THEREOF 16,380 + 16.3 62,121 + 16.0

TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING APPARATUS AND EQUIPMENT 12,416 • \ + 16.8 45,817 + 4.2

TEXTILE YARN, FABRICS, MADE-UP

ARTICLES AND RELATED PRODUCTS 12,613 + 6.0 40,778 - 3.5

MISCELLANEOUS MANUFACTURED ARTICLES (MAINLY BABY CARRIAGES, TOYS, GAMES AND SPORTING GOODS) 8,572 + 8.9 30,089 + 5.8

ARTICLES OF APPAREL AND CLOTHING

ACCESSORIES 7,661 + 5.5 29,351 + 6.6

OFFICE MACHINES AND AUTOMATIC DATA PROCESSING MACHINES 6,648 + 6.6 24,162 + 21.9

PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES, OPTICAL GOODS, WATCHES AND CLOCKS 5,466 + 5.1 20,183 + 2.5

FOOTWEAR 4,221 + 2.3 17,749 + 6.5

GENERAL INDUSTRIAL MACHINERY AND

EQUIPMENT, AND MACHINE PARTS 5,016 + 10.7 16,593 + 11.2

NON-METALLIC MINERAL MANUFACTURES 3,555 + 4.2 14,095 + 0.2

End

17

Dialogue to explore possible changes in Hong Kong Telecom ♦ * * * *

The Government and Hong Kong Telecom International (HKTI) are entering into a dialogue on the territory's international telecommunications sector.

A statement on the HKTI licence has been released by the Telecommunications Authority on April 23 to clarified the exclusivity held by HKTI under its licence which runs to September 30, 2006.

However, there are broader matters to consider.

The international telecommunications market is developing rapidly; this can be seen in the accelerated liberalisation of telecommunications around the world, the emergence of global alliances of telecom carriers and the increasing attention being given to telecommunications trade issues by the World Trade Organisation.

Furthermore, technological advance in telecommunications is continuing. Both these matters have led the Government and HKTI to agree to a dialogue on the existing arrangements for Hong Kong's international telecommunications sector and whether these are best suited to the continued development of the Government's policy objective of maintaining the territory as the pre-eminent telecommunications hub in the Asia-Pacific region.

A government spokesman said the Administration fully appreciates its obligations to HKTI concerning the boundaries that were developed in the 1981 licence and reaffirmed in the Telecommunication Authority's Statement of April 23. The Government has said it would only proceed in a further review of the HKTI licence with concurrence on the part of HKTI.

The aim of the dialogue was to explore what changes may be made to the existing arrangements, said the spokesman.

As the dialogue was just about to begin, it was too early to comment on whether any changes might be negotiated and jointly agreed, and whether such changes would require the negotiation of amendments to HKTI's licence, the spokesman added.

End

18

Majority satisfied with civil servants' working attitude *****

A public opinion survey conducted in May by the Home Affairs Branch (HAB) has shown that 58 per cent of the respondents felt that the working attitude of civil servants were good.

Releasing the latest findings of the bimonthly survey, an HAB spokesman said the figure represented an increase of four percentage points from 54 per cent in March.

Only a quarter of the respondents thought otherwise, down from 28 per cent.

As to the overall performance of the Government, 51 per cent said they were satisfied, about the same as the 52 per cent recorded in the last poll.

The percentage of people who felt the Government was concerned about their views on public affairs remained at 55 per cent.

Of the three most often mentioned problems facing the territory, labour-related issues, although still topping the list, had dropped from 40 per cent to 35 per cent. Sixty-three per cent of the respondents, up from 59 per cent, thought the Government had exerted effort in solving the problem.

Housing-related problems took second place at 32 per cent while the issue on Hong Kong's future was third at 26 per cent. The corresponding figures in March were 28 and 22 per cent respectively.

The survey was the 64th in the series to gauge the trend of public opinion on perceived problems in Hong Kong, Government's overall performance and the community's views of the general situation.

Through a random sampling of residential telephone numbers, 1,524 persons aged between 15 and 64 were interviewed.

End

19

Appointment to Hong Kong Arts Development Council

*****

The Government announced today (Tuesday) that Sir Joseph Hotung would resign from the Chairmanship of the Hong Kong Arts Development Council (ADC) with effect from July 1. Sir Joseph will be replaced by Mr Vincent Chow Wing-shing, the current Vice-Chairman of the Council.

Commenting on Sir Joseph's resignation, the Governor, the Rt Hon Christopher Patten, said he was sorry to see Sir Joseph's departure from the Council but understood that he had to do so because of his personal commitments.

He was grateful to Sir Joseph for his guidance and leadership which transformed the Council over the past two and a half years from a Working Group, to a statutory body with its own Ordinance, he said.

A spokesman for the Broadcasting, Culture and Sport Branch said that Mr Chow was a member of the Urban Council from June 1, 1991, to March 31, 1995, and was the Chairman of the Chung Ying Theatre Company until recently.

He is a member of the General Committee of the Hong Kong Philharmonic Society and a member of the Council of the Hong Kong Academy for Performing Arts.

Mr Darwin Chen, a member of ADC. will replace Mr Vincent Chow as Vice Chairman. A new member, Mrs Elim Pong Lau, will be appointed to fill the vacancy left by Mr Chen.

The three appointments will take effect from July 1 and last until December 31 next year.

End

Asia maritime administrations forum held in Hong Kong *****

Maritime administrators from seven Asian countries together with Hong Kong representative are attending the Second Asian Shipping Forum in Hong Kong today (Tuesday).

The forum, following the first one held in Tokyo. Japan, last year, is to update each of the delegations on shipping policy development and to review such development in the United States and European Union and its effects on the participating countries and territories.

20

Issues of common interests in the region including safety at sea and protection of marine environment were also discussed.

Taking part in the forum, which was chaired by the Director of Marine Hong Kong, Mr Ian Dale, are representatives from China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand.

The delegates, all senior officials of their countries maritime authorities, had a full day of discussion today after a brief opening ceremony by the Secretary for Economic Services of the Hong Kong Government, Mr Gordon Siu.

At the business session today, each delegate presented their report on the latest developments and the Deputy Director General of the Maritime Transport Bureau of the Japan's Ministry of Transport, Mr Toshiaki Omori, presented a paper entitled Shipping Policy Development in the United States and European Union and the effect on the participating countries and territories.

The delegates will tour the major port facilities in Hong Kong including a visit to the Hongkong International Terminals at Kwai Chung tomorrow.

The next meeting will be held in Seoul, Korea, in 1997.

End

World Customs Organisation Conference meets in Hong Kong

*****

The Secretary for the Treasury, Mr K C Kwong, this (Tuesday) morning officiated at the opening ceremony of the Policy Commission Meeting of the 1996 World Customs Organisation (WCO) Conference at the Hong Kong Convention and Exhibition Centre.

The 1996 World Customs Organisation Conference comprising the Policy Commission Meeting and the Council Meeting will be held between June 11 and 20.

The conference, which is co-sponsored by the Hong Kong Customs and Excise Department, will be attended by more than 300 delegates of the 140 member countries and territories of WCO and various international bodies. Today's Policy Commission Meeting will last until Friday (June 14). The Council meeting will commence on Monday (June 17) until Thursday (June 20).

21

WCO is an independent inter-governmental organisation whose mission is to secure, through co-operation between governments, the highest degree of harmony and uniformity in all customs systems world-wide, in the interest of international trade. It was established in Brussels in 1953 under the official name of Customs Co-operation Council. At present, WCO has 140 member countries and territories all over the world.

The Council meets once a year in June, usually in Brussels but once in three years and exceptionally the meetings are held outside Brussels. The delegates to the Council are normally the heads of national customs administrations.

The Council is assisted by the Policy Commission (consisting of 25 members) which meets twice a year. As its name indicates, the Policy Commission considers and advises the Council on important policy matters and acts as a dynamic steering group within the Council.

Hong Kong attained membership with WCO in 1987. Since then, Hong Kong has participated actively in WCO activities. The territory will continue to be a separate customs territory and a full member of the organisation beyond 1997.

End

Restricted banking licence to Pacific Finance granted *****

The Pacific Finance (Hong Kong) Limited (PFHK) has been granted a restricted banking licence on June 1 by the Hong Kong Monetary Authority (HKMA) under the Banking Ordinance, a spokesman of HKMA said today (Tuesday).

PFHK, which has a paid-up share capital of $300 million, has been operating as a money lender in Hong Kong since July last year. It is equally owned by Jardine, Matheson and Co Ltd and Jardine Fleming Bank Ltd.

After granting a licence to PFHK, the number of restricted licence banks in Hong Kong has increased to 63.

End

22

Man fined $150,000 for possessing musk grain *****

A traditional Chinese medicine shop operator was this (Tuesday) morning fined a total of $150,000 by Western Magistracy for possessing a large quantity of musk grain and pod.

The 37-year-old defendant pleaded guilty for possessing some 115 kilogram of musk grain and pod without licence late last year. The goods were estimated to be valued over $12 million.

Commenting on the sentence, an Agriculture and Fisheries Department (AFD) spokesman said heavy fines had been imposed for offences under the Animals and Plants (Protection of Endangered Species) Ordinance by the courts lately.

The spokesman hoped the heavier penalties would serve a more deterrent effect on similar offences.

The offence came to light last November when AFD officers raided a shop in Des Voeux Road West, Sai Ying Pun, after being tipped off. Upon search, about 115 kilograms of musk grain and pod - the largest single seizure of this endangered species - were found.

The spokesman said although the musk concerned could not be confirmed to be originated from a highly endangered musk deer species, it would still make the offender liable to a maximum penalty of $500,000 fine and one year's imprisonment upon conviction.

In the case of a highly endangered species used for commercial purpose, the maximum penalty is a $5 million fine plus two years in jail. Endangered species included live specimens, their parts, derivatives and medicines containing or claiming to contain tiger and rhino ingredients.

,'.i

The spokesman took the opportunity to remind traders of traditional medicine and other members of the community that it was a serious offence to import, export and possess endangered species without an AFD licence.

He also urged the public to report any illegal activities on endangered species to AFD by calling 2733 2144.

End

25

To encourage more participation and to widen the scope of the festival, the Wan Chai Festival Organising Committee (1997) has sent out invitations to more than more than 800 local organisations, calling for activities to be organised in support of the festival.

Scheduled for January 4 to 31 next year, the 1997 Wan Chai Festival is the fifth to be staged and will have a $3 million budget. In the last festival held in 1992, the opening day alone attracted more than 12,000 people. This year's opening is expected to attract more residents and will be broadcast live by the Television Broadcasts Ltd who will assist in the production.

End

Hong Kong Monetary Authority tender results

*****

Tender date 11 Jun 1996 11 Jun 1996

Paper on offer EF bills EF bills

Issue number Q624 Y690

Issue date 12 Jun 1996 11 Jun 1996

Maturity date 11 Sept 1996 11 Jun 1997

Coupon - -

Amount applied HK$7,980 MN HK$ 1,390 MN

Amount allotted HK$ 1,500 MN HKS500 MN

Average yield accepted 5.28 PCT 5.84 PCT

Highest yield accepted 5.28 PCT 5.85 PCT

Pro rata ratio About 30 PCT About 17 PCT

Average tender yield 5.29 PCT 5.86 PCT

26

Hong Kong Monetary Authority

Tenders to be held in the week beginning 17 Jun 1996

Tender date 18 Jun 1996 18 Jun 1996

Paper on offer EF bills EF bills

Issue number Q625 H667 (A

Issue date 19 Jun 1996 19 Jun 1996 c-

Maturity date 18 Sept 1996 18 Dec 1996

Tenor 91 days 182 days -

Amount on offer HK$l,500+300MN HKS800+160MN

End

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,860 0930 +99

Closing balance in the account 1,878 1000 +99

Change attributable to: 1100 +99

Money market activity +98 1200 +98

LAF today -80 1500 +98

1600 +98

•1 J

LAF rate 4.00% bid/6.00% offer TWI 124.4 *-0.1* 11.6.96

- 27 -

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.09 2 years 2805 6.30 99.82 6.50

1 month 5.13 3 years 3904 6.30 98.80 6.88

3 months 5.27 5 years 5106 7.23 99.37 7.52

6 months 5.47 7 years 7305 7.60 99.38 7.86

12 months 5.80 5 years M502 7.30 99.13 7.67

Total turnover of EF bills and notes - $20,497 million

Closed June 11, 1996

End

DAILY INFORMATION BULLETIN

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

Wednesday, June 12,1996

Transcript of Governor's media session.................................... 1

Measures to address urban renewal problems................................ 4

Administration of Justice (Miscellaneous Provisions) Bill................. 5

Slope maintenance works of schools closely monitored...................... 6

Bill to improve quality of childminding services.......................... 8

Bus drivers soon be required to wear seat belts........................... 9

Applications for BN(O) passports and Cis by post......................... 10

Survey of cantilever scaffolds completed............................. 11

Public views quality school education invited............................ 12

Consultation pamphlet on quality school education welcomed............... 14

CS completes Los Angeles leg of US promotional tour...................... 14

Steady recovery of economic growth in HK forecast........................ 16

Cargo vessel commissioined for CSD....................................... 18

/Good partnership..

Contents

Page No,

Good partnership enhances building safety................................. 19

New appointees to civic education committee............................... 20

Temporary suspension of ED’s enquiry system............................... 21

Ilie weather of May....................................................... 21

Two NT lots to let........................................................ 23

Advanced welfare payment for public holidays.............................. 24

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

1

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

Following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting Tseung Kwan O this (Wednesday) afternoon:

Governor: Good afternoon. I'm very pleased to have the opportunity in Tseung Kwan O this afternoon of seeing some of the progress that the Housing Authority has been making in carrying out both its performance pledges and its policy pledges.

I was particularly interested to see two things. First of all, the work which is being done to improve the management of estates and to make absolutely certain that tenants get as fast a service as possible when it comes to maintenance, to dealing with some of the problems that prop up even in the best-run block of flats. Secondly, I was pleased to see what is being done to deal with the problems of housing our senior citizens. They have particular needs. It requires as much flexibility as possible in managing the existing housing stock and in building new houses and flats. So I was very pleased to see what the Housing Authority has been doing as well in order to keep the pledges that we've made about improved housing for senior citizens and increased housing for senior citizens.

Question: Mr Patten. A lot of people are arguing that the provisional legislature is ....

Governor: I'd say very much what the British Foreign Secretary has said in the past, what I've said in the past, what the Chief Secretary and others have said in the past and continue to say. In our judgement, to quote from the Foreign Secretary, the establishment of a provisional legislature, the dismantling of the existing legislature, would be reprehensible and unjustifiable. What is the purpose of doing it. The purpose we all know is to exclude some people from the Legislative Council that some Chinese officials don't like. That's hardly going to lead to a fairly elected or representative legislature. So as far as we are concerned, there is one fairly elected legislature in Hong Kong. I've been pleased that some senior Chinese officials including in meetings, the Premier and the Vice-Premier have both made it absolutely clear that they understand there is only one Legislative Council before the 30th of June 1997, and if they seek to dismantle that legislature on the 30th of June 1997 or rather on the 1st of July they’ll have to explain how, what they’re doing is in line with the Joint Declaration and the Basic Law if they can. Until the 30th of June 1997 we intend to do absolutely nothing at all which could conceivably undermine the authority and the status of the Legislative Council. Now I've been saying that for some months. The British Government has been saying that for some months. Other members of the Hong Kong Government have been saying that for some months. That's our policy. It has been our policy. It's our policy today. It will be our policy till the 30th of June 1997. Full stop.

2

Question: There's only one year left .... What is the top agenda in your mind to make sure there is smooth transition ...?

Governor: I'm of course concerned that there should be a smooth transition, but I'm even more concerned about what sort of Hong Kong makes that transition. I want Hong Kong to continue as successfully economically as it's been over the years and I want Hong Kong to remain a free society living under the rule of law. And I'll continue to have as my main priorities ensuring that those things happen.

Question: You've said that the provisional legislature is unjustified, the setting up of such a body. But will the Hong Kong Government give a hand to help the setting up of such a body ...?

1

Governor: How many times do I have to answer with respect the same question. I’ve made it clear again and again and again, and I'll make it clear again this afternoon that we will do absolutely nothing whatsoever to compromise the authority of the Legislative Council or to assist in its dismantling and there can be no other Legislative Council as far as we are concerned, none whatsoever, before the 30th of June 1997. Now I can't make it much plainer than that.

Question: Is there anything ... be changed ...?

Governor: No. No. Is that... a negative no rather than a no with a question mark or a positive no or an affirmative no. How ... no no, a no no no?

Question: In a radio interview this week, T S Lo said ...

Governor: Well, among the many things that I am not responsible for, I include among those things the weather, the performance of the English football team, another of them are the comments of Mr T S Lo which I think speak for themselves.

Question: How about Director Lu Ping, Governor, do you think that he is inferring on you ...?

Governor: Did he what?

Question: Inferring on you, Mr Lu Ping yesterday's remark ...?

3

Governor: Well, I wouldn't have thought that it was a very sensible way of, if that's what he was saying, of describing my attempt which will continue until June 30, 1997 to stand up for Hong Kong. But let me say something which relates to his remark sent to those for which I take no credit, made by a distinguished former member of the Executive Council who is now the possessor of a Chinese passport. Let me just say a word or two about that issue. We have today in Hong Kong, we have today freedom of speech. We have freedom of speech which is guaranteed in our laws. We're told that there will be freedom of speech after 1997 as well. And that too is guaranteed in the Joint Declaration and in the Basic Law. Today, newspapers report, and they sometimes advocate, I'm sure it's the case that in leading articles Ta Kung Pao and Wen Wei Po sometimes advocate as well as reporting. We make no distinction between advocacy and reporting, how can you? So I am puzzled by the suggestion that somehow there will be laws after 1997 which will make that distinction. I am also puzzled about something else. Basic Law article 23 makes it perfectly clear that the laws on these issues will be made by the SAR Government and legislature. So I don't quite understand what is the basis for some Chinese officials saying what those laws will do or be. It's entirely a matter for the SAR Government. So I very much hope that we won't have any more confusion about this issue. There is freedom of speech today and it is promised tomorrow. And we don't make the sort of distinction which I mentioned earlier.

Question: Governor, do you think that Lu Ping is a good salesman for Hong Kong ...?

Governor: I think it is a very good thing that Lu Ping and other senior Chinese officials go to other countries in the region and elsewhere and explain both what the Joint Declaration says, what the Basic Law says, what it means to talk about Hong Kong having a high degree of autonomy and what their plans are for the future. I would hope that in making those statements, they could avoid occasional confusion, for example over issues like freedom of speech but as I've said before, I welcome without any reservation whatsoever, senior Chinese officials taking the word about Hong Kong's present success and the pledges they've made for the future to other countries, whether in the region or in Europe or in North America.

Question:... because you are advocating ...

Governor: Sony'?

Question: Because you are one of the ... you have advocacy...?

Governor: I am advocating adherence to the Joint Declaration. I assume that that is not something which Director Lu would think was wrong after 1997. I find this whole issue profoundly puzzling. But as I've said to you before, I haven't tied this knot and it is for others who have tied it to undo it. Thank you very much indeed.

End

4

Measures to address urban renewal problems

*****

The Secretary for Planning, Environment and Lands, Mr Bowen Leung, today (Wednesday) announced a package of measures to address urban renewal problems immediately and longer term proposals to speed up and widen the scope of urban redevelopment.

The immediate measures are:

* Housing Society will act as rehousing agent for the Land Development Corporation (LDC) to improve the standard and range of rehousing to those affected by urban renewal. This will enable LDC to concentrate on the planning, site assembly and implementation aspects of projects.

* Three sites will be granted to Housing Society at 1/3 of the full market value for the construction of about 2,000 additional flats for rehousing purposes to support the currently planned LDC projects.

* The Housing Authority will be requested to extend from six to 12 months, the priority in allocation of public housing for affected households.

The Government will grant land to LDC to implement a linked-site scheme where profit obtained in developing Government land will be used to cross-subsidise financially non-viable projects to improve the living environment.

* The Planning, Environment and Lands Branch is to set up a dedicated urban renewal team to strengthen co-ordination among concerned parties and to oversee and monitor the implementation of the new urban renewal policy and projects.

In addition, LDC will continue to make offers above existing market value in property acquisition and to keep open the options of "flat-for-flat” exchange and ’’owners participation”.

In the longer term, Mr Leung said: "We will consider upgrading the LDC to a statutory Urban Renewal Authority, and measures to encourage proper building maintenance through the creation of a Rehabilitation Fund and to facilitate private land owners to redevelop their properties.

5

’’These long-term proposals aim at more fundamental changes to the existing urban renewal policy. Given the considerable policy and resource implications, we will consider them in depth before deciding the way forward.

’’The package was worked out after we had carefully considered views expressed during a consultation exercise from July 20 to November 15, 1995.

"It will help us deal with the growing urban decay problem caused by the ageing of private buildings. It is estimated that the number of obsolescent private buildings over 30 years old will be more than double from the present stock of 113,000 units to 260,000 units in 10 years.

"The package, which has been approved by the Govemor-in-Council, will enable us to take the urban renewal process forward into the next century towards the goal of improving people’s quality of life."

Copies of the urban renewal document will be available from District Offices starting tomorrow.

End

Administration of Justice (Miscellaneous Provisions) Bill ♦ ♦ ♦ ♦ ♦

The Administration of Justice (Miscellaneous Provisions) Bill 1996 will be gazetted on Friday (June 14) and is expected to be introduced into the Legislative Council on June 26, a government spokesman said today (Wednesday).

The Bill amends the Supreme Court Ordinance to enable solicitors to be appointed as recorders and to give the Chief Justice the power to appoint temporary deputy registrars and temporary assistant registrars.

It also amends the Jury Ordinance to abolish the requirement that the Registrar of the Supreme Court must state to the court or the judge his reasons for excusing a person from attending on a jury.

The spokesman said: "The Bill proposes to repeal the Secretary of State for Defence (Succession to Property) Ordinance, the Air Armament Practice Ordinance, the Defence Works Protection Ordinance, the Compulsory Service Ordinance and the China Fleet Club Incorporation Ordinance.

6

"These Ordinances are either obsolete or have been in disuse for many years.”

The spokesman said the Bill contained other miscellaneous amendments.

"These include updating the list of practice firing ranges in the Defence (Firing Areas) Ordinance and amending the Protected Places (Safety) Ordinance to bring it into line with the internal orders of the British forces and the Police," he said.

End

Slope maintenance works of schools closely monitored ♦ * ♦ ♦ ♦

The Government is closely monitoring the progress of slope maintenance works of 19 schools which have potentially dangerous slopes within or in the vicinity of their boundaries, the Secretary for Education and Manpower, Mr Joseph W P Wong, said today (Wednesday).

Fourteen of the schools have been served with the Dangerous Hillside Orders issued under the Building Ordinance and the other five have been or are being affected by substandard public slopes upgraded/bcing upgraded under the Landslip Preventive Measures Programme.

Mr Wong said remedial works in respect of four schools had been completed.

He said letters had been issued by the Director of Education to all the affected schools advising them to make precautionary arrangements and to keep parents informed of the arrangements as appropriate.

Referring to concerns about compensation under the block insurance policy for aided schools in the event of a landslip accident, Mr Wong said the maximum insured sum in respect of public liability was $7.5 million for any one occurrence.

"The public liability insurance covers the insured school’s legal liability for damages in respect of bodily injury to students and other persons (other than employees of the insured school), and loss of or damage to property.

"In addition, the block insurance policy contains a group personal accident insurance specifically for students which covers accidental death and disablement benefit to each student provided that such accident occurs while the student is participating in any school activities.

7

"The maximum sum insured is $20,000 each student for each and every loss," Mr Wong said.

The Government was currently reviewing the terms of the block insurance policy, he added.

Meanwhile, the Education Department today organised an experience sharing session for the school principals of the affected schools.

At the session, the principals of 16 schools affected by sub-standard slopes . discussed their concerns with representatives from the Geotechnical Engineering Office, Buildings Department and Architectural Services Department.

The officers from the three works departments reminded the school heads about the government enquiry hotlines and contact telephone numbers in case of emergency.

It was pointed out that schools may approach relevant departments for professional advice in relation to slope safety in the event of inclement weather.

School heads were also assured that professionals or consultants appointed by the schools would keep them closely informed of the necessary precautionary measures and the progress of remedial works.

A school head shared his experience in devising a contingency plan. The participants were confident that they would also be able to devise a contingency plan that suits their own circumstances. The approach of the sample contingency plan is similar to that for fire drills in school.

They also noted that the recent letter issued by the Education Department was useful in helping them to prepare a contingency plan in accordance with their own situation, particularly after this experience sharing session.

Representatives of the five schools which are affected by government slopes being upgraded under the Landslip Preventive Measures Programme also noted at the meeting that works on the slopes were either completed or being carried out.

Tire schools are Cognitio College, Man Kiu Association Primary School, Hong Kong Taoist Association School, FDBWA Yan Kow School and SKH St John's Primary School.

The Assistant Director of Education (Schools), Mr Kwan Shu-tsun, said the experience sharing was very useful.

8

’’Principals of concerned schools are advised to contact the District Education Offices or works departments should they have any enquiries in connection with slope safety.

’’The Education Department is well aware of their concerns and will render support in conjunction with other government departments, whenever possible,” he said.

End

Bill to improve quality of childminding services ♦ ♦ ♦ * *

A Bill which seeks to prohibit unsuitable persons from acting as childminders and to improve the quality of care for children in child care centres will be published in the Gazette on Friday (June 14).

Entitled the Child Care Centres (Amendment) Bill 1996, it also proposes to exempt mutual help child care centres from certain controls under the Child Care Centres Ordinance.

Commenting on the proposed amendments, a spokesman for the Health and Welfare Branch said today (Wednesday) that at present, there was no control over childminding activities where care was provided to fewer than six young children under the age of six.

In recent years, incidents have occurred in which babies and young children have suffered serious neglect or physical abuses from their childminders.

A full registration system for childminders would be very cumbersome to administer and, if made compulsory, would greatly reduce the number of people willing to offer such services.

’’Being left unattended is a much greater and more common risk for babies and young children than being abused by a childminder.

"After careful deliberation, we concluded that the most appropriate form of control would be to prohibit unsuitable persons from acting as childminders," the spokesman said.

9

Under the Bill, a person would be prohibited from acting as a childminder if he or she has been convicted of any specified serious offences which would pose a risk of exposing the child being minded to abuse.

The Director of Social Welfare (DSW) will also be empowered to determine a person to be unsuitable to act as a childminder on the basis of the findings of a coroner's inquiry concerning the death of a child while in his or her care as a childminder.

However, the Bill allows the person concerned to make written representations to DSW and be given a right of an appeal against DSW's determination to the Administrative Appeals Board.

A childminder may also request DSW to issue a certificate verifying that he or she is not prohibited from childminding. Parents can ask a potential childminder to show them the certificate to assist them to assess his/her suitability to look after their child.

The Bill further proposes to exempt mutual help child care centres from the full set of requirements under the Ordinance.

"By making it easier for mutual help child care centres to operate, we aim to facilitate their formation and operation since they play a key role in addressing the problem of children left unattended at home," the spokesman said.

There are also a number of technical amendments aimed at improving the quality of care provided for children in child care centres.

The Social Welfare Advisory Committee and the Legislative Council Panel on Welfare Services have expressed support for the proposed amendments.

The Bill will be introduced into the Legislative Council on June 26.

End

Bus drivers soon be required to wear seat belts ♦ ♦ ♦ ♦ ♦

The Government is to impose compulsory requirements for buses to be fitted with safety belts on the driver’s seats and bus drivers to wear them.

An amendment regulation stipulating the requirements will be gazetted on Friday (June 14) and will come into operation from July 1, 1997.

10

A government spokesman said today (Wednesday) that existing regulations required the compulsory fitting and wearing of seat belts for drivers and front seat passengers of private cars, taxis, light buses and goods vehicles.

"Since June 1 this year the requirement has been extended to the middle front seats of such vehicles as well as all rear seats of private cars," he said.

"From a road safety view point, it is necessary to protect our bus drivers, and hence the public, by imposing similar compulsory requirements."

He said bus companies were given one year to order new buses with approved seat belts.

"For buses registered before the amendment Regulation comes into operation, bus owners will be given a five-year grace period to retro-fit seat belts," he said.

"Exemptions from the Commissioner for Transport may be given to those models of buses which have technical problems in fitting seat belts," he added.

End

Applications for BN(O) passports and Cis by post *****

The Government today (Wednesday) announced that from Friday (June 14), children under 11 years of age, the aged, the blind and the infirm who are eligible for British National (Overseas) passports or Certificates of identity (CI) may apply by post along with their applications for permanent identity cards without having to attend in person.

A government spokesman explained that at present, an applicant who was aged, blind or infirm, and who satisfied a registration officer that compliance with the Registration of Persons Ordinance and regulations would injure his health or the health of others, and children under 11 were exempted from the requirement to register or apply for a Hong Kong identity card.

"But if these people are eligible for and wish to apply for a BN(O) passport or a CI, they will have to first apply for a permanent identity card," he said.

11

"As an applicant for a permanent identity card is required under the existing law to submit the application in person, these exempt persons are unable to apply for the BN(O) passport or the CI by post like other applicants who are already holding permanent identity cards."

The spokesman said the Registration of Persons Regulations would be amended to enable registration officers to waive the personal attendance requirement for these applicants who satisfied the necessary conditions.

"The changes are aimed at improving services to the public. Particularly with the summer holidays approaching, we believe that a considerable number of people among the affected groups especially children can be benefited," he said.

For enquiries, members of the public may telephone the Immigration Department hotline 2824 6111 or use the faxline 2877 7711.

End

Survey of cantilever scaffolds completed ♦ ♦ ♦ ♦ ♦

The Labour Department's Occupational Safety and Health Branch (OSHB) has completed a check on cantilever scaffolds being used in constructing bridges and flyovers in the territory.

Factory inspectors involved in the three-day operation found a total of 143 cantilever scaffolds in use on 14 work sites.

"Valid reports of monthly inspection (Form 6) of these scaffolds, properly certified by competent persons, were also available for inspection by factory inspectors," Deputy Commissioner for Labour in charge of the OSHB, Mr Lee Kai-fat, said today (Wednesday).

"No irregularities in the operation of the scaffolds have been discovered," Mr Lee added.

The territory-wide inspections were launched after five workers and an engineer died as a result of the collapse of a cantilever scaffold in a Kwai Chung construction site last Thursday (June 6) evening.

He stressed that building contractors should observe relevant regulations under the Factories and Industrial Undertakings Ordinance to ensure workers' safety.

12

Mr Lee said the safe use of cantilever scaffolds is being governed by the following industrial safety regulations:

(a) Regulation 38F of the Construction Sites (Safety) Regulations - that the cantilever scaffold should be adequately supported, fixed or anchored;

(b) Regulation 38G of the Construction Sites (Safety) Regulations - that the structure used as support of the scaffold shall be of sound material and sufficient strength;

(c) Regulation 38K of the Construction Sites (Safety) Regulations - the scaffold shall be inspected by a competent person at monthly intervals who should certify that it is in safe working condition in an approved form (Form 6); and

(d) Section 6A (General Duties Provisions) of the Factories and Industrial Undertakings Ordinance - that a contractor is required to provide a safe system of work.

The maximum fine is $200,000 for a breach against each of these four provisions and an additional penalty of imprisonment of 12 months in respect of the Factories and Industrial Undertakings Ordinance.

Meanwhile, a team of factory inspectors and engineers led by a Deputy Chief Factory Inspector, is still investigating last week’s fatal cantilever scaffold accident in Kwai Chung.

”We hope to complete our investigation by mid-July. While investigation is continuing, it is not appropriate to speculate on the causes of the accident," Mr Lee said.

End

Public views quality school education invited * ♦ ♦ ♦ ♦

The Chairman of the Education Commission, Professor Rosie Young, called on members of the public to forward their views during a six-week consultation which started today (Wednesday) on how to ensure quality school education.

Speaking at a press conference to launch the consultation exercise, Professor Young said public views on this important issue would be useful to the Commission in drafting its No 7 report, which would be released for extensive consultation this Autumn.

13

"The public consultation will help ensure that the Commission’s No 7 report contains concrete proposals which would address the genuine needs of the school community and the concerns of the public at large.

”To facilitate the public in considering the issue, a consultation pamphlet was produced by the Commission’s task group on school quality and school funding,” Professor Young said.

The pamphlet describes briefly the present school system, the roles of the key players in the system and the present funding arrangements.

It also identifies the main constraints of the system including the lack of flexibility and accountability in the funding and school management systems, the lack of appropriate indicators to assess the performance of schools, school sponsoring bodies, school management committees, principals and teachers, and the absence of incentives for schools to take initiatives and accept responsibility for the achievement of quality education.

The pamphlet proposes a new quality culture with clear goals and incentives for improvement, and invites views on:

* goals and targets of quality school education;

* ways to relate school funding to performance; and

* the roles of key players in the school system and the relationships between them.

Interested parties are welcome to send in their views by July 31 to Education Commission Secretariat, ninth floor, Central Government Offices (West Wing), 11 Ice House Street, Central (Fax 2537 4591).

Copies of the pamphlet can be obtained from all district offices and the suboffices of the Education Department. It is also available at the following E-mail address: embinfo@emb.gcn.gov.hk.

End

14

Consultation pamphlet on quality school education welcomed ♦ ♦ ♦ ♦ ♦

The Secretary for Education and Manpower, Mr Joseph W P Wong, today (Wednesday) welcomed the publication of a consultation pamphlet on quality school education by the Education Commission.

"It is important to ensure that our school system can deliver the quality of education required to develop the full potential of students, sustain Hong Kong’s social and economic growth and to meet the aspiration of our community.

"In this connection, the Administration supports the Commission’s efforts in consulting the public on ways to improve the quality of our school education,” Mr Wong said.

Referring to the Commission's first of a two-round consultation on how to build a quality culture in schools with clear goals and incentives for improvement, Mr Wong said it was important that the community, particularly the education sector, should give their views which will form the basis of the Commission’s next report - ECR7.

He urged the public to forward their views to the Commission by July 31.

"The Government is looking forward to receiving the Commission’s recommendations on this important issue later this year," Mr Wong added.

End

CS cortipletes Los Angeles leg of US promotional tour *****

The Chief Secretary, Mrs Anson Chan, on Tuesday (Los Angeles time) completed her four-day long official visit to Los Angeles.

As head of the Hong Kong-USA '96 delegation, Mrs Chan is on a seven-city promotional tour of the United States, strengthening cultural, economic and academic ties between the territory and the United States.

She spent her final day in Los Angeles meeting the social, business and cultural community.

15

First on her itinerary was the inaugural meeting of the Hong Kong Schools Alumni Federation in downtown Los Angeles, attended by over 100 members. The Federation is supported by more than 20 Hong Kong schools alumni associations in Southern California which were set up to promote cultural, educational, economic and social activities.

Mrs Chan said she was especially pleased to have been able to include a very strong academic element in her visit to the US.

In addition to meeting the Hong Kong Schools Alumni Association, Mrs Chan had addressed faculties and students at Stanford in San Francisco, Harvard, Massachusetts Institute of Technology (MIT), Tufts University in Boston, and UCLA in Los Angeles.

"Increasing numbers of the younger generation from Hong Kong are coming to the US for their education as part of the ever growing ties between Hong Kong and the United States," Mrs Chan said, adding that this educational link between Hong Kong and the United States was not a one way street, with a number of US educators teaching in Hong Kong.

Mrs Chan's then visited the Chinatown Senior Citizens Services Center.

She delivered a keynote address to an audience of more than 800 business and community leaders at a luncheon sponsored by the Hong Kong Economic and Trade Office concluding a half-day business seminar.

The seminar, organised by the Hong Kong Trade Development Council (HKTDC) at the Inter-Continental Hotel, showcased leaders of Hong Kong’s industry and government offering practical advice on how to take advantage of the tremendous opportunities in Hong Kong and the Asia Pacific region.

Speakers included Executive Director of HKTDC, Mr Michael Sze, Chairman of Hang Lung Development Co, Mr Ronnie Chan, Group Managing Director of Lam Soon HK Ltd, Mr Raymond Chien, Chairman of the Hong Kong Tourist Association, Mr Y S Lo, and Executive Director of the Hong Kong and Shanghai Banking Corporation, Mr Vincent Cheng.

To further strengthen the cultural and entertainment ties between Los Angeles and Hong Kong, the Hong Kong Tourist Association is presenting a week-long festival at Universal City.

Mrs Chan officiated at the opening of "Hong Kong Wonders Never Cease-Live at Universal City Walk."

16

The "Hong Kong Live" festival kicked off with a dragon dance followed by a non-stop variety show with the best and brightest artistes from Television Broadcasts Ltd.

The booths for "Hong Kong Live" will be running from June 11 to 16 featuring the myriad attractions that Hong Kong has to offer, including cuisine, art and famous Hong Kong sights.

Mrs Chan will travel on Wednesday (June 12) to Washington DC where she will meet with US Administration officials and Congressmen to build on the Governor's visit to Washington in May and to further lobby for the unconditional renewal of China's MFN status.

End

Steady recovery of economic growth in HK forecast *****

After achieving a soft landing in 1995, as forecast last year, the economies of the Pacific Region will exhibit faster economic growth in 1996 and 1997 while inflation continues to steadily decrease, according to the 1996-1997 Pacific Economic Outlook (PEO) released today (Wednesday) by the Pacific Economic Cooperation Council (PECC).

PEO, one of the projects of PECC, is a forecast of 20 Pacific Rim economies.

Hong Kong Forecaster for PEO, Mr K C Kwok, and Chief Economist for NE Asia of Standard Chartered Bank, said the Pacific region as a whole experienced a mild slowdown in growth in 1995 following a strong 1994.

He said monetary policies were tightened in many economies to engineer a moderate cooling off. As a result, a soft landing was achieved, laying the ground for a gradual recovery in 1996 and 1997.

However, given the diversity of the region, economic conditions in each economy clearly differ from one another.

PEO attributed the economic recovery in the region to three forces: the expansion of private plant and equipment investment, rapid growth of international trade, and the implementation of economic reform.

17

Mr Kwok said these three forces helped to enhance economic efficiency and the growth potential of economies in the region, and were important to underpinning the medium term prospects for the region.

For Hong Kong, he said, the economy experienced a cyclical slowdown last year.

While merchandise trade and exports of services actually grew faster in 1995 than in 1994, and domestic investments continued to grow steadily, GDP growth was adversely affected by the weakness in private consumption expenditure.

"However, there are clear signs that the economy is undergoing a gradual cyclical recovery," Mr Kwok continued.

"Growth in consumer spending is bottoming out and there has been a revival in private sector building activity. While growth in merchandise exports slowed down in the first few months of this year, exports of services are expected to have remained strong.

"Overall, the GDP is forecast to grow by 4.8% in 1996 as compared with 4.6% in 1995. Inflation is expected to moderate from 8.7% last year to 7.5%."

Looking forward into 1997, this economic recovery process is expected to continue with GDP growth rising further to 5.2%.

Mr Kwok said business conditions in China were difficult for many Hong Kong investors in the past two years but this was expected to improve gradually in the next two years.

The economic environment globally and in the Pacific region in particular, is also expected to be conducive to steady economic growth in Hong Kong.

The Hong Kong forecast published in PEG also discussed concerns related to the return of sovereignty in 1997.

The report highlights that the structure of the Hong Kong economy remains sound, and the territory has strong foreign exchange and fiscal reserves which would enable the territory to deal with problems that may arise (if there are any) as a result of the 1997 transition.

Furthermore, despite concerns about a possible rise in emigration as the territory moves closer to 1997, Mr Kwok said the estimated number of emigrants actually fell during 1992 to 1995.

18

Indeed, Hong Kong had a rapidly increasing number of immigrants and returning migrants during the past few years, he added.

PECC is tripartite in nature, comprising government officials, business leaders and academics, seeking to develop closer co-operation on trade and economic policy issues in the Pacific region.

Currently, PECC has a total of 22 Members Committees representing the economies of Australia, Brunei Darussalam, Canada, Chile, China, Colombia, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States, Vietnam and the Pacific Island Nations.

HKCPEC was formed when Hong Kong became a member of PECC in 1991.

End

Cargo vessel commissioned for CSD *****

A 24-metre long cargo vessel has been commissioned for the Correctional Services Department (CSD) to ferry rations to its institutions in outlying islands.

The Commissioner of Correctional Services, Mr Raymond Lai Ming-kee, today (Wednesday) led the honours in the commissioning ceremony for 'Seaway' at Hei Ling Chau.

The brief ceremony, to bring luck to the vessel, included worshipping the sea Goddess Tin Hau at the pier, a lion dance performance, plaque presentation and the cutting of a roast pig.

The 'Seaway' is equipped with a two-tonne hydraulic crane to handle the loading and unloading of cargo, a refrigeration chamber for meat storage and two prisoner compartments for the transfer of prisoners if required.

It is capable of doing 14 knots at full speed and can save 10 to 15 minutes travelling time when visiting the institutions in outlying islands.

End

19

Good partnership enhances building safety * ♦ ♦ ♦ ♦

The pursuit of quality and safety in buildings and construction in Hong Kong relies on the cooperative and responsible partnership among the building industry, the professionals, and the Government.

The Director of Buildings, Dr Choi Yu-leuk, made the remarks when addressing the opening of the 13th International Building and Construction Exposition at the Hong Kong Convention and Exhibition Centre this (Wednesday) morning.

He said in the process of building construction, the Government had been playing a regulating and facilitating role to ensure public safety and a satisfactory built environment.

He noted that the Buildings Department had set up a Site Monitoring Section last October to monitor demolition and building sites to ensure that the works on those sites were carried out in a safe manner.

"In the last six months, the team has conducted 1,500 site inspections and has issued 210 advisory letters to building professionals for improvement of site safety.

"The team has won the acclaim of the professionals and contractors in helping to create a safe building environment, safe to the workers and the public alike," Dr Choi said.

Furthermore, for the past year, the department has been discussing with the building professionals and the industry on enhancing safety management of building sites.

The essence consists of refining the requirements and improving the procedure for registering as building contractors and improving the standards on site safety management and clarifying the responsibilities of each party, Dr Choi said.

"These improvements are planned to be implemented with the new approach of self-regulation.

"In line with this approach, the Government will introduce new codes of practice on the management and supervision of the building process," he added.

In order to ensure the new codes are realistic and enforceable by all parties concerned while achieving the objective of enhancing safety, Dr Choi stressed that the professions and the industry would be invited to participate in the drafting of the codes.

20

"All the building activities and related functions form a chain of events which together lead to the betterment in the quality and safety of buildings and the building process.

"This chain of process requires not only the diligent and conscientious efforts of all the players involved, but also must depend on their interaction and coordination," Dr Choi said.

End

New appointees to civic education committee * * ♦ * *

Two new members - Mr Ma Lik and Miss Annie Wu Suk-ching - have been appointed to the Committee on the Promotion of Civic Education (CPCE) from April 1 for a term of two years.

Mr Ma is the director of a local newspaper and was the former deputy secretary general of the Basic Law Consultative Committee.

Miss Wu is the managing director of a food catering service company. She is a member of the United Nations Children's Fund, Hong Kong Committee, as well as a member of the Hong Kong Trade Development Council's China Advisory Subcommittee.

Another five incumbent members, including Mrs Anita Chan Fok Po-chun, Mr Raymond Chow Wai-kam, Dr John Ho Dit-sang, Miss Junia Ho Suk-yin and Mr William Tsui Hing-chuen, were re-appointed.

Meanwhile, one of the CPCE members, Dr Fanny Cheung Miu-ching, has recently retired from the Committee.

Other CPCE members are Mr Walter Chan Kar-lok, Mr Jimson Chan Wing-tai, Mr Cheng Kai-nam, Mr Cheung Yin-tung, Dr Patricia Ip Lai-sheung, Mr Lai Chi-tong, Mr Peter Lam Yuk-wah, Mrs Justina Leung Ngai Mou-yin, Dr Lo Chi-kin, Miss Elle Shum Mun-ling, Mr Tai Hap-lap, Mr Benny Tai Yiu-ting, Mr Andrew Yuen Wei-man, and representatives from various government departments .

The Committee is headed by Mr Moses Cheng Mo-chi who was appointed Chairman on July 1 last year.

End

21

Temporary suspension of ED's enquiry system ♦ * ♦ ♦ ♦

The service of Education Department's 24-hour Automatic Telephone Enquiry System on 2891 0088 will be temporarily suspended from 5 pm on Friday (June 14) until 8.30 am the next Tuesday (June 18) due to disruptions of the electricity supply.

End

The weather of May ♦ ♦ ♦ * ♦

May was slightly cooler than normal, the mean temperature of 25 degrees was 0.9 degrees below the normal figure.

The month's total rainfall of 313.9 millimetres was near normal and the accumulated rainfall since January 1, 654.2 millimetres, was still six per cent above normal. A Rainstorm Red Warning was issued on May 5.

It was rainy on the first day of the month, rain being most heavy in the early afternoon. The weather improved temporarily the next day and there were sunny periods.

However, as a trough of low pressure developed over south China and moved southwards, Hong Kong was affected by occasional heavy rain and thunderstorms from May 4 to 6. Winds also strengthened briefly from the east on the evening of May 5.

The weather remained cloudy with isolated showers until May 12. Meanwhile, easterly winds strengthened again on May 9 but moderated the next day. On May 10, the temperatures dropped to 20.5 degrees, the lowest in the month.

Under the influence of a drier airstream, fine and sunny weather prevailed from May 13 until May 21. Winds during this period were generally moderate easterly.

Temperatures rose to the highest in the month - 30.6 degrees - on May 20. As winds turned southerly two days later and the territory came under a maritime airstream, local weather generally turned cloudy.

Due to a trough of low pressure, weather in Hong Kong deteriorated on May 25 when there were squally thunderstorms. Rainy weather continued till May 30 as this trough lingered along the coastal area and there were again squally thunderstorms on May 29.

22

As the trough weakened and moved away, weather became fine on the last day of the month.

Two tropical cyclones occurred in the western North Pacific and the South China Sea in May.

Details of the issuance/hoisting and cancellation/lowering of various wamings/signals in the month are summarised in Table 1.1 and monthly meteorological figures and departures from normal of May are tabulated in Table 1.2.

Table 1,1 Warnings and signals in May 1996

Wamings/Signals Effective date and time

Strong Monsoon Signal 9 May 2300- 10 May 0810

Rainstorm Warning

Red 5 May 0645 - 5 May 0900

Flood Warnings 1 May 1315- 1 May 1430 4 May 1630- 4 May 2010 5 May 0520 - 5 May 0930 25 May 1930-25 May 2345 29 May 0345 - 29 May 0930 29 May 2140-30 May 0650

Thunderstorm Warnings 1 May 1125- 1 May 1425 4 May 1145- 4 May 2145 5 May 0250 - 5 May 0950 6 May 0315 - 6 May 1700 7 May 1710- 7 May 2210 25 May 1900 - 26 May 0900 27 May 1130-27 May 1430 28 May 0220 - 28 May 1220 28 May 2200-29 May 1000 29 May 1100-29 May 1300 29 May 2120-30 May 0700

Fire Danger Warning

Yellow 18 May 1230-20 May 1800

23

Table 14 Figures and Departures from Normal - May 1996

Total Bright Sunshine 119.7 hours; 34.1 hours below normal

Mean Daily Global Solar Radiation 13.60 MJ/SQM; 2.52 MJ/SQM below normal

Total Rainfall 313.9 mm; 2.8 mm below normal

Mean Cloud Amount 75%; 1% above normal

Mean Relative Humidity 81%; 2% below normal

Mean Daily Maximum Temperature 27.6 Degrees Celcius; 1.1 Degrees Celcius below normal

Mean Air Temperature 25 Degrees Celcius; 0.9 Degree Celcius below normal

Mean Daily Minimum Temperature 23.2 Degrees Celcius; 0.7 Degree Celcius below normal

Mean Dew Point 21.3 Degrees Celcius; 1.3 Degrees Celcius below normal

Total Evaporation 119.8 mm; 17.9 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

I'wo NT lots to let

*****

The Lands Department is inviting tenders for the short-term tenancy of two pieces of government land in the New Territories.

The first lot located in Ping Shun Street, Yuen Long, has an area of about 2,952 square metres. It is intended for use as a fee-paying public car park for the parking of motor vehicles, excluding container vehicles, but including container tractors without container trailers.

24

The tenancy is for two years, renewable quarterly.

The second lot is situated at Wu On Street, Area 44, Tuen Mun. With an area of about 2,400 square metres, the lot is also designated for use as a fee-paying public car park for the parking of private cars, goods vehicles and buses, excluding container tractors and trailers.

’ ■ V •’ *

The tenancy is for three years, renewable quarterly.

The closing date for submission of tenders is at noon on June 28.

Tender forms, tender notices and conditions may be obtained from the Lands Department, 14th floor, Murray Building, Garden Road and the District Lands Offices of Kowloon, Yuen Long and Tuen Mun.

Tender plans can also be inspected at these offices.

End

Advanced welfare payment for public holidays

*****

Recipients of Comprehensive Social Security Assistance (CSSA) under the bank payment system may receive their payments on Friday (June 14) if their pay days fall on the coming public holidays (June 15 to June 17).

"Special payment arrangements will also be made for recipients of Social Security Allowance whose pay days fall within this period," a Social Welfare Department spokesman said.

For those who have bank accounts in Hongkong Bank or Hang Seng Bank can receive their payments on Friday whereas those with accounts in other banks will receive their payments alter the public holidays on Tuesday (June 18).

In case of doubt, recipients are advised to contact their respective social security field units.

End

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,878 0930 +83

Closing balance in the account 1,888 1000 +83

Change attributable to : 1100 +85

Money market activity +55 1200 +85

LAF today -45 1500 +85

1600 +55

LAF rate 4.00% bid/6.00% offer TWI 124.5 *+0.1* 12.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.01 2 years 2805 6.30 99.77 6.53

1 month 5.09 3 years 3904 6.30 98.73 6.91

3 months 5.25 5 years 5106 7.23 99.29 7.54

6 months 5.46 7 years 7305 7.60 99.32 7.88

12 months 5.87 5 years M502 7.30 98.92 7.73

Total turnover of EF bills and notes - $30,647 million

Closed June 12, 1996

End

DAILY INFORMATION BULLETIN

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

Thursday, June 13,1996

Contents Page No.

Transcript of FS's media session............................................. 1

Misapprehensions of subvention review clarified.............................. 2

New arrangement for property resumption allowance endorsed................... 5

Government committed to supporting industries: FS............................ 6

Licence for satellite earth station approved................................. 7

Incident at San Po Kong demolition site..................................

Temple of two gods declared a monument....................................... 8

Social Workers Registration Bill to be gazetted.............................. 9

ACP Exhibition Centre to open on public holidays............................ 10

108 VMs depart on orderly repatriation flight............................... 12

Monitors' Report submitted to CS............................................ 12

Hong Kong Monetary Authority money market operations........................ 13

1

Transcript of FS’s media session *****

Following is the transcript of the remarks by the Financial Secretary, Mr Donald Tsang, after visiting the Hong Kong Industrial Technology Centre this (Thursday) afternoon:

FS: You know that in my last Budget I made an important part on my Budget speech to discuss the future industrial development in Hong Kong both in the service industry and in the manufacturing industry. I also made proposal which is to explore the possibility of having another industrial technology centre. For that reason, I come here today to have personal experience of various incubatees and various tenants discussing their own experience with the centre, and discussing their plans. I found it extremely useful and I hope it would help me eventually in formulating Government policy in this respect.

Reporter: Can I have your comments on KCRC proposal to inject $44 billion?

FS: We have just got this more detailed proposals from the KCRC. We would go through our vigorous studies of the proposal, particularly in terms of the programme they have suggested, and also the expenditure programme. My colleagues and I would have to be satisfied that those plans are realistic, and then we have to consider the phasing of the programme in terms of expenditure and in terms of works. And at that stage then we have to come to a view.

Reporter: There are some views that the Chinese might not agree to ... Would the Government sort of trying to put back the whole thing until...?

FS: There is no question of putting it back. The fact is it is an enormous project. It is also a priority project. We would tackle it as quickly as possible. But it is also because it is a future project, and various studies means that we won't be able to start this project until 1998. There is no delaying involved. There is no fear of pre-mature commitment or delay commitment in this project. We would do it in the right time.

End

2

Misapprehensions of subvention review clarified *****

The Social Welfare Department's subvention for non-governmental organisations (NGOs) operating 2,488 service units in 1996-97 is nearly $4 billion.

This was stated by the Director of Social Welfare, Mr Ian Strachan, when he addressed the luncheon meeting of the Rotary Club of Kingspark Hong Kong today (Thursday).

Mr Strachan said the department had commissioned a consultancy firm to review the social welfare subvention system with an objective to improve the current system so that the department and NGOs could work in partnership to provide more efficient, customer oriented and output-driven services.

He said the consultants had so far released two reports and held various workshops, seminars and briefings with the SWD and NGOs.

"For collection of views from the sector, I also issued a questionnaire to all chairpersons/agency heads of subvented NGOs to seek their views on the proposals and have specifically asked them to incorporate in the completed questionnaire views of their staff, their boards and their senior management," Mr Strachan said.

"Judging from the initial response, it can be said that the sector generally supports in principle the series of measures aimed at improving the way in which SWD assesses the quality and quantity of the services delivered by NGOs though there are concerns on the need for additional manpower and technological support for implementing and monitoring these standards."

Mr Strachan took the opportunity to clarify nine of some common misapprehensions by the welfare sector:

(1) Subvention provision will be cut in the name of service improvement and there will not be enough to maintain the civil service pay rates.

Maintaining that the review was not a cost cutting exercise, Mr Strachan said the total cost of social welfare subvention under the new system would be no more nor no less than it was under the cunent system.

There would be adequate provision for most NGOs to meet their necessary operation costs including payment of salary to their staff at civil service rates, he said.

3

(2) The general public will suffer from reduced social welfare service provision due to the averaging effect of the unit grant.

Mr Strachan said such a worry was completely untrue. In fact, he expected the reverse to happen: because the entire sector, including SWD units, would be concentrating on better performance, the services to customers were expected to improve.

(3) The proposed Unit Grant will commercialise the provision of social welfare services.

To this misapprehension, he said said all subvented services would remain nonprofit making and there would be absolutely no change in this respect.

(4) Unit Grant funding will preclude future service improvements.

The SWD would continue its current process to bid new funding for service improvement, Mr Strachan said.

(5) Professional standards are denied and ignored thus adversely affecting the interest of the public.

Mr Strachan said the Funding and Service Agreement proposed by the consultants would require service units to deliver the service to the required quality and level and the new approach would have the effect of raising the quality of welfare services.

(6) NGO managers are overpowered.

Mr Strachan said the requirements of the existing system create the misleading impression that SWD carried some of the management responsibility ofNGOs.

The new system could clarify the actual position that the Executive Board of a NGO is responsible and accountable for the organisation's functions and services, he said.

(7) The averaging approach adopted by the Unit Grant subvention would penalise the well established NGOs.

Mr Strachan expected the well established NGOs would be in a better position to respond to the proposed changes because of their greater managerial skills and greater number of subvented service units.

4

Even if their agencies’ requirements were above the notional Unit Grant level, experienced NGO managers could still make use of the opportunities of staff turnover and natural wastage to make adjustments so as to cut expenditure, he said.

(8) Reduction in staff salaries, smaller pay rise, etc.

Mr Strachan said firstly, this kind of fear was unwarranted because the money available to the sector to pay staff salaries under the new system would be the same as the existing system

Secondly, the salaries of existing staff were guaranteed by the government in the first three years of implementation and NGOs could use the additional flexibility during the period to make any appropriate adjustments required to cope with the new Unit Grant level.

Thirdly, as more vacancies were filled and the service continued to expand, this would increase the benchmark. The need for experienced staff would continue to exist and they would continue to be funded through the Unit Grant.

(9) If the Unit Grant is so favourable, why is this not applied to SWD units?

Mr Strachan explained that it was because SWD was not funded in the same ways as NGOs. Funded mainly by the government, NGOs also received funding from donations, the Community Chest and fee income.

Concluding, Mr Strachan said the consultants had worked out a detailed blue print for the future administration of the subvention system which, he believed, would make a major contribution to improving the way the department delivered its welfare services.

End

5

New arrangement for property resumption allowance endorsed ♦ ♦ ♦ ♦ ♦

The Govemor-in-Council has endorsed revisions to the eligibility criteria for the Home Purchase Allowance (HPA) to avoid over-generous payment to property owners affected by government resumption.

A government spokesman explained that HPA was an ex-gratia allowance payable to owners of domestic premises upon resumption by the Government on top of the full market value statutory compensation.

The original intention of the allowance is to ensure that affected owners will not be forced out of home ownership as a result of resumption. The allowance goes towards the cost of purchasing a replacement flat of a similar size in the neighbourhood of the resumed flat.

”HPA is currently paid to all owners of domestic premises regardless of whether the premises are vacant, let or occupied by the owners.

"Nor is there any restriction to prevent a single owner, who owns more than one property, from receiving more than one HPA payment.

"This is unjustifiably generous, particularly to absentee landlords or investment owners who have no genuine need to purchase a replacement flat to live in.

"Furthermore, it would give rise to speculators acquiring property for the purpose of profiting from HPA payment," the spokesman said.

To rectify this, the Govemor-in-Council approved that HPA payment should normally be restricted to owner-occupiers on the basis of buying one replacement flat per owner.

"There will be guidelines for the Director of Lands to determine whether a claimant is an owner-occupier, and to address exceptional situations where payment to absentee landlords and multiple payments to an owner may be allowed," said the spokesman.

Owners who disagree with the Director of Lands' decision on their eligibility for HPA can appeal, within three months of such decision, to the Secretary for Planning, Environment and Lands.

The Finance Committee of the Legislative Council will be asked to endorse the arrangement shortly.

End

6

Government committed to supporting industries: FS

*****

The key to improving the competitiveness of our manufacturing sector is technological innovation, the Financial Secretary, Mr Donald Tsang, said today (Thursday).

Speaking after a tour of the Hong Kong Industrial Technology Centre (HKITC), Mr Tsang said the Government was committed to supporting the further development of the manufacturing industries by providing the necessary infrastructure.

"The HKITC, established to facilitate the promotion of technological innovation and the application of new technologies, is an important part of the supportive infrastructure we provided for high-tech companies in Hong Kong.

"Other projects that are being planned, including the second technology centre, the science park, and the fourth industrial estate, will help to further promote technology upgrading in Hong Kong when they come on stream," he said.

Mr Tsang was accompanied by the acting Director-General of Industry, Ms Anissa Wong, during his visit. He was briefed by the Chief Executive Officer of HKITC, Dr James Liu, on the Centre's facilities and functions.

The Financial Secretary toured the Incubation Centre in the building, where high technology start-up companies were nurtured.

He also visited a number of tenants and incubatees of the Centre, including a company developing computer-aided design (CAD) software for the garment industry; a company specialising in multimedia computer graphics applications; a software consultancy firm specialising in the design and development of scheduling systems and a company specialising in developing CAD tools for three dimensional modelling.

End

7

Licence for satellite earth station approved ♦ ♦ ♦ ♦ ♦

The Govemor-in-Council has approved the grant of a licence under the Telecommunication Ordinance to APT Satellite Company Limited for the establishment of an earth station in the territory to control and monitor its new satellite.

APT, a company registered in Hong Kong, will be issued a licence to operate its satellite, APSTAR-1A, which will be launched by the China Great Wall Industry Corporation from Xichang in China around July 2 to 4 this year.

The new satellite will form part of the company's satellite communication network in the Asia-Pacific region to provide telecommunications and broadcasting transmission services to countries and territories in the region.

The licence is to enable the company to establish an earth station at the Tai Po Industrial Estate for the control and monitoring of the satellite.

APSTAR-IA is the fourth satellite operated by a Hong Kong company after AsiaSat-1 (launched in April 1990), APSTAR-I (launched in July 1994) and AsiaSat-2 (launched in November 1995).

End

Incident at San Po Kong demolition site ♦ * * ♦ ♦

The Director of Buildings, Dr Choi Yu-leuk, today (Thursday) extended condolences to the family of the worker who died following an accident at a demolition site in San Po Kong earlier.

He said the Department was now conducting a thorough investigation into the cause of the accident.

Dr Choi said since October 1994, the Buildings Department had tightened up control on demolition work and issued practice notes for building professionals with advice on site safety measures.

8

The department had also set up the Site Monitoring Section (SMS) in October last year to monitor the performance of building professionals and contractors on active sites to deter dangerous work practice.

Dr Choi said since the last accident which occurred at the same site in November last year, SMS had directed the contractor to install sufficient precautionary measures to ensure public safety.

"The Section has also carried out four inspections to the site in the past two months.

"Under the Buildings Ordinance, authorised persons, registered structural engineers and registered contractors have a duty to supervise and ensure that all building works are carried out in a safe manner and in accordance with approved plans," Dr Choi said.

Meanwhile, Dr Choi added, the department's staff were on site advising the contractor to take all necessary measures to ensure safety.

End

Temple of two gods declared a monument ♦ ♦ ♦ * *

I Shing Kung, which literally means "a temple of two gods", will be gazetted as a historical building tomorrow (Friday) under the Antiquities and Monuments Ordinance.

One of the few surviving examples of its kind. I Shing Kung is situated in Wang Chau. Yuen Long. It was originally a small temple for the worship of two deities, Hung Shing and Che Kung.

Judging from the oldest remaining relic - a temple bell - and the structure of the building, the temple was probably built by residents of the six villages in Wang Chau area in 1718, the 57th year of the Kangxi reign in Qing Dynasty.

It is a green-brick two-hall structure with an open courtyard flanked by covered aisles. The left aisle, which was formerly used as a kitchen to prepare basin meals during Ta Chiu festivals, is no longer in use.

9

The roof ridge is of simple geometric design while wall friezes are decorated with leafy and floral plaster moulding.

The temple underwent minor repairs in the 1970s and 1980s and most of the original features have been retained in fair condition.

The declaration of I Shing Kung brings the total number of monuments in Hong Kong to 61.

End

Social Workers Registration Bill to be gazetted ♦ ♦ * ♦ ♦

The Social Workers Registration Bill, which seeks to set up a statutory registration system for social workers in Hong Kong, will be published in the Gazette tomorrow (Friday).

The main objectives of the Bill are to establish a register of professional ’social workers as well as to make registration mandatory for any person who wishes to use the title "registered social worker" and to use the words "social work" or "social worker" to describe his profession as being the social work profession, or his social work professional qualifications.

"A person who is not registered, but who carries out voluntary social work or social work, may use the term 'social worker' in connection with such work, on condition that he docs not say or imply that he is professionally qualified to provide or is providing professional social work services," a spokesman for the Health and Welfare Branch explained.

"These provisions on protection of title are designed to provide the central balance in the Bill between preventing abuse of the term 'social worker' in a professional context while permitting the common use of the term in a nonprofessional context."

Under the Bill, a Social Workers Registration Board will be established to set and assess the qualifications required for the registration of social workers, to register and discipline registered social workers, and to issue codes of practice.

10

The 15-member Board will comprise eight elected registered social workers; six appointed by the Governor, of whom at least three shall be non-social worker lay members and two registered social workers employed in Government departments; and the Director of Social Welfare, or his representative, as an ex-officio member.

The Bill provides for two categories of registered social workers. A person who holds a degree or diploma in social work recognised by the Board, or who occupied a social work post before April 1, 1982, and for not less than 10 years thereafter, may be registered under Category 1 of the Register.

A person who is not qualified to be registered under Category 1, but who currently occupies a social work post, or has been accepted for employment in such a post, may be registered under Category 2.

Those in Category 2 will be required to complete the necessary formal training to enable them to be qualified for registration under Category 1 within a reasonable period of time to be agreed by the Board.

The spokesman said the Administration had discussed the major issues in the Bill with representatives of the Hong Kong Social Welfare Personnel Registration Council, staff of the Social Welfare Department, board members and staff of Nongovernment Organisations, the Legislative Council Panel on Welfare Services, the Social Welfare Advisory Committee, academic staff of the tertiary institutions, and other interested bodies.

The Social Workers Registration Bill will be introduced into the Legislative Council on June 26.

End

ACP Exhibition Centre to open on public holidays *****

The Airport Core Programme (ACP) Exhibition Centre has been so well received by the public that the New Airport Projects Co-ordination Office (NAPCO) will be extending the centre’s opening hours to include public holidays.

Since its opening on January 16, by the end of May, the centre has attracted more than 75,000 visitors, with an average of over 2,000 people on weekends.

11

"The change in the opening time of the centre is primarily for the convenience of the public so that visitors may use the centre during public holidays," explained a spokesman for NAPCO today (Thursday).

The change will come into effect this Saturday (June 15), a public holiday to mark the Queen's Birthday.

The new opening hours will be 10 am to 5 pm from Tuesdays to Fridays, and 10 am to 6.30 pm on Saturdays, Sundays and public holidays.

However, the centre will close on New Year's day and during the Chinese New Year and the Christmas holidays.

It will also close on Mondays for maintenance purposes, except when it is a public holiday.

The centre was set up by NAPCO for the public to learn more about the 10 ACP projects which are the largest infrastructure development ever undertaken in Hong Kong.

NAPCO organises guided tours of the centre for primary and secondary schools and local organisations. Up to the end of May, about 12,500 people from 369 schools and 196 community organisations have visited the centre.

The tours for schools have been fully booked up to the end of July this year. The tours in August have also been fully booked by community organisations.

Admission is free and enquiries on guided tours can be made to NAPCO's Community Relations Division on 2829 6282 or fax 2827 8446.

Located on Castle Peak Road, Ting Kau, the centre is an ideal location to view construction progress of the Tsing Ma Bridge, the world's longest suspension bridge carrying both road and rail traffic, and to appreciate a major landmark in Hong Kong.

On display at the centre is the latest information on the physical progress of the 10 projects, illustrated by photographs, models and video presentations.

Telescopes have been set up at the viewing platform at the rooftop and the centre's garden for visitors to view the Tsing Ma and Kap Shui Mun Bridges.

End

12

108 VMs depart on orderly repatriation flight ♦ * * * ♦

A group of 108 Vietnamese migrants (VMs) returned by air to Hanoi, Vietnam, today (Thursday) on the 41st flight under the Orderly Repatriation Programme (ORP).

All of the returnees, comprising 50 men, 28 women, 17 boys and 13 girls, are from North Vietnam.

The majority of them arrived in Hong Kong in 1988 and 1989, with a few in

1990.

The group brought to 3,436 the total number repatriated on ORP flights since November 1991.

End

Monitors' Report submitted to CS

*****

The monitors appointed to observe the Orderly Repatriation Programme operation this (Thursday) morning have submitted their report to the Chief Secretary.

The two monitors comprised a non-official Justice of the Peace, Mrs Irene Cheung Yok-luen; and a representative from a non-governmental organisation, Ms Elaine Chan from Christian Action.

End

13

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,888 0930 +72

Closing balance in the account 2,140 1000 +72

Change attributable to : 1100 +72

Money market activity +72 1200 +72

LAF today + 180 1500 +72

1600 +72

LAF rate 4.00% bid/6.00% offer TWI 124.3 *-0.2* 13.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.11 2 years 2805 6.30 99.71 6.56

1 month 5.14 3 years 3904 6.30 98.60 6.96

3 months 5.29 5 years 5103 7.23 98.99 7.62

6 months 5.51 7 years 7305 7.60 98.90 7.96

12 months 5.92 5 years M502 7.30 98.82 7.76

Total turnover of EF bills and notes $18,266 million

Closed June 13, 1996

End

DAILY INFORMATION BULLETIN

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

Friday, June 14,1996

Contents Bagels

SEM convenes interdepartmental meeting on industrial safety......... 1

Agreement on new air traffic rights arrangements reached............ 1

HK raises objections to new US import requirements.................. 2

CS visits Washington DC............................................. 4

Easy access buses put on trial to help disabled people.............. 5

LRC Privacy Sub-committee consultation ends......................... 7

Noise emission control on motor vehicles............................ 7

Energy Efficiency Labelling Scheme for room coolers................. 8

HK Government delegation to visit China............................. 10

By-election for education conduct council........................... 10

21-Gun Salute to mark Queen’s birthday.............................. 11

Trading in endangered species could end up in jail.................. 12

/Draft Ping....

Contents

Page No

Draft Ping Shan and Tong Yan San Tsuen OZPs published.................... 13

Tenders invited for town park and gondola system......................... 16

Tenders invited for two school improvement projects...................... 16

Mainlaying works in Central Kowloon...................................... 17

Sai Kung West Country Park extended.................................. 18

Tenders for stage lighting invited....................................... 19

Air Quality Report for May............................................... 19

Hong Kong Monetary Authority money market operations................. 21

1

SEM convenes interdepartmental meeting on industrial safety

*****

The Government is very concerned about the recent spate of industrial accidents and a high-level interdepartmental meeting will be convened next Tuesday (June 18) to review the matter, the Secretary for Education and Manpower, Mr Joseph W P Wong, said today (Friday).

Chaired by Mr Wong, the meeting will include the Commissioner for Labour, Director of the New Airport Projects Co-ordination Office, Director of Marine, Director of Buildings, and senior officials from the Works Branch and the Occupational Safety and Health Council.

"The aim of the meeting is to ensure proper co-ordination and follow-up actions, and to consider additional measures, including publicity on industrial safety," he said.

He added that priority had been given to improving industrial safety in the current financial year.

Referring to yesterday’s industrial accident in Yau Tong, Mr Wong said that the Commissioner for Labour had been in close touch with the Director of Marine and a thorough investigation would be launched by the Marine Department into the accident.

End »• • ’ , Agreement on new air traffic rights arrangements reached

In response to press enquiries, a government spokesman today (Friday) confirmed that agreement has been reached on new air traffic rights arrangements between the United Kingdom and the People's Republic of China covering Hong Kong. .

’ '* • • ' i ।• . . » . »

Under this agreement, Hong Kong airlines can now overfly China on their major services to Hanoi, Europe and North America. It is expected that Cathay Pacific will benefit from these new overflight routes because of the shortened flight time to these popular destinations.

2

In addition, under the new arrangements Dragonair will get the right to operate new scheduled services to five cities in China. They also obtain an increase in capacity for the Hong Kong/Dalian route.

The spokesman said the full details of the package could not be disclosed because of commercial sensitivities. However, he confirmed that the overall package was a good one, allowing Hong Kong airlines to provide new and better services to the public.

The talks on the new arrangements took place in London between June 10 and 13. Hong Kong was represented on the UK side by the Economic Services Branch.

End

HK raises objections to new US import requirements ♦ ♦ ♦ ♦ ♦

The Secretary for Trade and Industry, Miss Denise Yue, has today (Friday) written to the United States Government to raise objections to its unilateral decision to impose additional import document requirements on a number of textiles and clothing products from Hong Kong.

In her letter, Miss Yue requests the US to defer the implementation of the measures and to start early consultations with Hong Kong.

"On June 13 (US time), the US Customs announced its decision to impose such import measures with effect from June 17 (US time), on five types of products from Hong Kong. These are skirts (Cat 342/442/642), suits (Cat 443/643), nightwear (Cat 351), underwear (Cat 352/652), and dresses (Cat 336/636)," a Trade Department spokesman said.

Under the new US requirements, importers of these products from Hong Kong are required to submit, for each consignment, declarations completed and signed by all manufacturers and subcontractors involved in the production of the consignment. They need also to certify that the declarations are accurate, and to pay higher entry bonds.

The consignment will then be conditionally released for entry into the US, but is subject to recall by the US Customs within 210 days, if Customs determines that the country of origin of the goods in question has not been accurately represented to it.

3

The requirements also provide that if a US textile production verification team is in Hong Kong, the consignment will be detained until the team verifies that production has actually taken place in Hong Kong.

"These measures will be disruptive to our trade," said the spokesman.

"We understand that the measures are intended to tackle illegal textiles transshipment. But they are objectionable because they are being taken in the absence of concrete evidence of illegal transhipment of such products in Hong Kong, and they affect both legitimate and illegitimate traders indiscriminately.

"We are disappointed that despite the established co-operative relationship between the two governments in our common efforts against illegal transshipment, the US should impose such discriminatory measures against Hong Kong unilaterally without any prior consultations, and without any prior discussions with the Hong Kong Government to seek to establish the facts about the perceived problems of transshipment in Hong Kong," he added.

The spokesman said that was why Hong Kong was requesting early consultations with the US.

"But, more immediately, we are concerned with the effects the measures may have on our consignments arriving in the US in two days' time. The relevant traders are unlikely to be able to meet the new requirements, and may therefore be adversely affected," he said.

"That is why we have asked the US to defer the implementation of the measures."

I he spokesman said the Trade Department had informed Hong Kong traders of the US measures. Should they require any additional information, they are welcome to contact the Department's Americas Division.

Last year, Hong Kong's exports of the five specific types of products to the US amounted to $3.5 billion, representing 9.6 per cent of its total textiles and clothing exports to the US, or about four percent of textiles and clothing exports to the world.

End

4

CS visits Washington DC

4 *****

* ’ s . *

The Chief Secretary, Mrs Anson Chan, arrived Washington DC from Los Angeles on Wednesday (June 12, Washington DC time) evening for the seventh and final leg of her US tour.

The purpose of the trip was to follow up on the Governor's visit to the city in May and to reinforce the Hong Kong case on a number of issues including the unconditional extension of most favoured nation status for China, the protection of Intellectual Property Rights, and to update contacts on Hong Kong's preparations for the transition.

Mrs Chan began her day at the Treasury Department for a meeting with the Secretary for the Treasury, Mr Robert Rubin, treasury officials and economists.

She then travelled to Capitol Hill to call on Chairman of the Senate Finance Committee, the committee with jurisdiction for MFN and trade issues, Senator William Roth; and Senator John McCain, one of the Senate's most authoritative experts on foreign policy and who was involved in the preparation of Presidential candidate Bob Dole's recent policy speech on China and Asian affairs. .

, I

During her visit, Mrs Chan also met Congressman Senator Tom Delay, the House Majority Whip; California Senator Dianne Feinstein; Congressman John Porter, Co-chairman of the Congressional Human Rights Caucus and Vice Chairman of the Congressional Hong Kong Caucus; Congressman Doug Bereuter, Chairman of the Asia and Pacific Sub-committee of the International Relations Committee; Congressman Ben Gilman, Chairman of the International Relations Committee; Congressman Jim Kolbe, leader of the pro-MFN coalition; and Senators Sam Nunn, Claiborne Pell, Charles Robb, and Joseph Lieberman.

Talking to the media between meetings, Mrs Chan said she had spent a very worthwhile three-week visit to the United States.

'’I've been very encouraged by the continued interest, and in a way heightened interest, in Hong Kong as we draw nearer 1997,” she said, adding that she had found considerable goodwill towards Hong Kong.

"The visit has also given me the opportunity to try to bring people here up to date on what we've done during the last 12 years to put in place the foundation for Hong Kong to practice a high degree of autonomy.”

5

She said she had been able to address specific concerns regarding how Hong Kong would tackle a number of transitional issues, particularly in the lead-up to 1997.

"But of course, for a good deal of these concerns, the assurances have to come from the Chinese side," Mrs Chan said.

Her day ended with a dinner hosted by Hong Kong Commissioner to the United States, Mr Barrie Wiggham, for academies and representatives of Washington area think tanks.

She continue her round of appointments in Washington DC on Friday before leaving the US capital for Hong Kong on Saturday (June 15).

End

Easy access buses put on trial to help disabled people ♦ ♦ ♦ ♦ ♦

Two easy access buses will be put on trial from tomorrow (Saturday) to help the people with disability use public bus service for commuting convenience.

The trial is the latest of a series of measures introduced by the public transport operators to improve facilities for disabled people on the territory's transport system.

The two air-conditioned single-deck buses with special features to facilitate disabled passengers boarding and alighting the buses will be operated in the Kowloon Motor Bus route 88K running between Hin Keng and Ho Tung Lau in Sha Tin.

These special features include lower floor, ramps, wheelchair spaces, call bells, wider gangway, clearer route display, contrasting colour steps and hand rails.

These facilities help wheelchaired persons and people with walking difficulties to enjoy public bus service.

These two buses are extra to the normal schedule to strengthen the service of KMB 88K.

These special buses will be operational at a single journey fare of $3.9 at 40-minute frequencies according to the daily timetable below:

6

From I lin Kcng

6 am to 10.40 am noon to 7.20 pm 8.40 pm to 11.20 pm

From Ho Tung Lau

6.40 am to 11.20 am

12.40 pm to 8 pm

9.20 pm to 12 midnight

The routing runs through various places and estates in Sha Tin including Lung Hang, Sun Chui, Tai Wai, Mei Lam, Sha Tin KCR Station, Wo Che and Lek Yuen.

The trial scheme will extend on a Citybus Hong Kong Island route later this month.

A total of 20 low-floor buses will be delivered to the two bus companies this year.

Since 1993, public transport operators of train, ferry and bus have provided a number of improved services and facilities to help disabled people to use their services.

These facilities include:

the provision of wheelchair aids, stair lifts, tactile guide paths, and audio induction loops at MTR and KCR stations;

the provision of wheelchair spaces on ferries; and

the provision of more user-friendly buses with lower floor, wider gangway, clearer route display, and contrasting colour steps.

End

7

LRC Privacy Sub-committee consultation ends ♦ * ♦ ♦ ♦

The two-month consultation period for public views on the preliminary recommendations of the Privacy Sub-committee of the Law Reform Commission on 'Privacy: Regulating Surveillance and the Interception of Communication' will end tomorrow (June 15).

A spokesman for the Sub-committee said today (Friday) that some 20 submissions had been received by the Sub-committee but the final count would only be known after receiving all submissions made by post.

He stressed that the public's views would be carefully studied by the Subcommittee before its final recommendations are submitted to the Law Reform Commission for consideration and preparation of the final report.

The consultation process was to ensure that any final recommendations by the Commission were workable and broadly acceptable to the community, he said.

Submissions could be sent to the Secretary of the Privacy Sub-committee, 20th floor, Harcourt House, 39 Gloucester Road, Wan Chai, Hong Kong, or by fax on 2865 2902.

End

Noise emission control on motor vehicles ♦ * * ♦ ♦

Control of noise emission from newly registered vehicles will come into effect on August 1.

A commencement notice under the Road Traffic Ordinance which will bring the Noise Control (Motor Vehicles) Regulation into operation is gazetted today (Friday).

"Under the new control, motor vehicles, including motor cycles, must comply with specified noise emission standards before they are registered", acting Principal Environmental Protection Officer of the Environmental Protection Department (EPD), Mr Sam Wong, said.

8

Before presenting a vehicle for pre-registration examination, a noise emission compliance letter for the vehicle should be obtained from EPD. Applications for noise emission compliance can now be submitted to EPD, Mr Wong said.

These new requirements will not apply to special purpose vehicles, motor tricycles, village vehicles, and vehicles that cannot travel above 50 kilometres per hour. Nor will they affect existing vehicles.

Further information on the new noise emission controls and the relevant application forms can be obtained from EPD's Control Section, Motor Vehicle Emissions Group at room 4518, 45th floor, Revenue Tower, 5 Gloucester Road. Wan Chai. Enquiries can also be made on 2594 6040 or by fax 2827 8256.

End

Energy Efficiency Labelling Scheme for room coolers *****

The Electrical and Mechanical Services Department (EMSD) is inviting manufacturers, importers and local agents of room coolers to join its Voluntary Energy Efficiency Labelling Scheme.

The scheme, which will come into effect tomorrow (Saturday) under the administration of the EMSD, aims at:

* raising public awareness of energy efficiency and conservation;

* helping consumers select more energy efficient products by providing pre-purchase information on energy consumption and efficiency;

* phasing out less energy efficient products; and

* achieving energy-saving in households.

Similar to the refrigerator labelling scheme introduced a year ago, the scheme covers room coolers sold in Hong Kong but does not cover second-hand products or products already in use.

Interested manufacturers, local agents and importers can join the scheme voluntarily through registration with EMSD.

9

By joining this scheme, participants can keep pace with the international trend which calls for the use of energy labels. At the same time, they can give assurance to their customers that their products are energy saving and of high quality.

The Consumer Council will also publish details of those registered.

An appliance to be qualified for registration should meet the performance tests and energy consumption test requirements.

After joining the scheme, participants are required to produce and affix specified labels at their own cost on all registered appliances. It is expected that room-coolers with such labels will come into the market towards the end of the year.

The label gives annual energy consumption, energy efficiency grading and other important information of the appliance, such as the cooling capacity.

The energy efficiency grading of the appliance will be assessed on a scale of 1 to 5, by comparing to appliances in the same category according to the specified method laid down in the scheme. The test methods are based on the ISO 5151 standard.

EMSD will carry out random checks on registered and unregistered appliances and take necessary follow-up actions to ensure that the scheme operates effectively.

In the event of the labelling scheme being abused, legal action can be initiated under either the Trade Descriptions Ordinance or the copyright legislation, as appropriate.

EMSD may de-register a non-compliant product with immediate effect if the registration of an appliance is contrary to public interest.

A participant who decides to discontinue participating in the scheme or to withdraw any registered model from the registered appliances list will have to give at least three months' notice to EMSD.

Further enquiries can be made in writing to EMSD Energy Efficiency Office at 11th floor, 111 Leighton Road, Causeway Bay or on 2881 1562.

End

10

HK Government delegation to visit China *****

The Secretary for Transport (designate), Mr Gordon Siu, will be visiting Beijing and Fuzhou from June 18 to 26 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 China visits started in 1988 for the purpose of general familiarisation.

’’The last similar visit, which took place in March this year, was led by the Secretary for Works, Mr H S Kwong,” the spokesman said.

End

By-election for education conduct council

*****

The Director of Education, Mrs Helen C P Lai Yu, announced today (Friday) that a by-election will be held for the five vacant seats on the Council on Professional Conduct in Education (CPC).

Mrs Yu said in reaching the decision, the Education Department had taken into account the views of concerned educators and educational bodies.

She noted that a by-election was held during the election to the first session of

CPC.

In the second CPC election in April, one seat each in five categories remained unfilled.

Circular letters were issued to 910 schools and teachers’ unions in the five categories to seek their views on whether a by-election should be conducted.

The five categories are namely government secondary school, government primary school, private primary school, kindergarten and teachers’ union category.

11

Six returns were received and they were all in favour of holding a by-election. Among them, three returns said they will make a nomination for the by-election while the other three said they will not.

“The by-election will provide a chance to fill seats in all of the five categories, whether or not the voters concerned already have a nominee in mind,” Mrs Yu said.

The Education Department will separately inform the concerned categories about the decision for a by-election.

Meanwhile, the Education Department will consult CPC on whether the byelection should be held before or after the summer holidays.

End

21-Gun Salute to mark Queen’s birthday *****

The Royal Navy will mark the official birthday of Her Majesty Queen Elizabeth II with a 21-Gun Salute, to be fired from HMS Plover at precisely noon tomorrow (Saturday), as she sails through Hong Kong harbour.

Since HMS Tamar moved from Prince of Wales Barracks to Stonecutters Island in 1993, gun salutes have been fired from a site on the south shore of that island. However, the site was unsatisfactory because it was invisible to the public and it has since been enveloped by preparatory work for the new naval base for the PLA Navy.

New saluting cannons were, therefore, brought out from the UK so that gun salutes can be fired from a sea-going warship in the full view of much of the city.

Tomorrow's gun salutes can best be witnessed from the waterfront at Queen's Pier, Central.

End

12

Trading in endangered species could end up in jail *****

Trading in endangered species could face very heavy fines or even jail terms if convicted by the courts.

The message was issued by the Agriculture and Fisheries Department (AFD) after a 47-year-old man was sentenced this (Friday) morning by North Kowloon Magistracy to 15 months’ imprisonment for selling endangered species in Kowloon late last year.

This is the first ever immediate prison term handed down to a defendant convicted under the Animals and Plants (Protection of Endangered Species) Ordinance. A six-month suspended jail sentence had been imposed in 1991.

An AFD spokesman said since the hefty increase in penalties under the ordinance became effective early last year, the courts had been delivering much heavier penalties on offenders lately.

The spokesman hoped that the jail sentence could serve as a serious deterrence.

"Under the ordinance, any person found guilty of possessing, importing or exporting highly endangered species for commercial purpose is liable to a maximum fine of $5 million and two years’ imprisonment," he said.

Endangered species include live specimens, their parts, derivatives and medicines containing or claiming to contain tiger or rhino ingredients.

North Kowloon Magistracy heard that acting on information, AFD field officers raided a shop in Mong Kok in mid-December last year, resulting the seizure of two Asiatic black bear paws, three live giant salamanders and two pangolin carcasses. Both Asiatic black bear and giant salamander are classified as highly endangered species.

The 47-year-old defendant pleaded not guilty this morning to the offence but was convicted after a trial.

The spokesman also took the opportunity to urge members of the public to refrain from buying endangered species from illegal sources.

End

13

Draft Ping Shan and Tong Yan San Tsuen OZPs published ♦ * ♦ ♦ *

The Town Planning Board today (Friday) announced the publication of two draft Outline Zoning Plans (OZPs) for Ping Shan and Tong Yan San Tsuen respectively.

These two rural OZPs, which replace the approved Development Permission Area (DPA) plans covering the rural areas of Ping Shan and Tong Yan San Tsuen in Yuen Long, would provide more definite and comprehensive land use zones to guide and control development in the areas, a spokesman for the Board said.

"Similar to DPA plans, unauthorised developments within the two OZPs are subject to enforcement actions," he said.

The spokesman pointed out that the general planning intention of the draft Ping Shan OZP, which covered about 601 hectares of land, was to designate the area for sub-urban development with a district centre in Hung Shui Kiu and a local centre near Ping Shan San Tsuen.

"It intends to encourage upgrading of the environment through comprehensively planned development, to reserve land for village expansion and strategic road/railway links, to protect historical/cultural heritage sites and to conserve the natural landscape features of the upland portion of the area," he said.

About 107 hectares of land on the plan have been zoned 'Village Type Development' to facilitate village extension. About 45 hectares have been zoned 'Residential (Group A)', 'Residential (Group B)' and 'Residential (Group C)' to allow sub-urban types of development with different intensities.

Six sites with a total area of 13 hectares mainly along Castle Peak Road have been zoned 'Comprehensive Development Area' to promote sub-urban developments, to enhance Hung Shui Kiu as a district centre and to provide significant improvement to the environment.

To serve the needs of the local as well as district population, about 15 hectares of land have been reserved for 'Govemment/Institution/Community' and another 10 hectares have been zoned 'Open Space'.

On the plan, about 39 hectares of land have been zoned 'Recreation' to encourage the development of recreation and tourism.

14

About 25 hectares of land have been zoned ’Industrial’ and ’Industrial (Group D)' to allow for the development of light manufacturing industries and rural workshops so as to provide employment opportunities for the area.

To cater for the continuing demand for open storage, about 19 hectares have been zoned 'Open Storage'. Another 55 hectares of land to the west of Tin Sam, east of Hung Tin Road to the south of Ping Ha Road and Tin Fuk Road and to the east of Long Tin Road have been zoned 'Undetermined'.

A substantial portion of land, about 229 hectares in total, have been zoned 'Green Belt' and 'Conservation Area' to define the limits of urban and sub-urban development areas and to retain the existing natural landscapes and topographical features in rural areas.

The draft Tong Yan San Tsuen OZP covers about 648 hectares of land.

"The plan intends to designate sub-urban developments in appropriate locations, to encourage upgrading of the environment through comprehensively planned development and to preserve the rural character of the Tong Yan San Tsuen area.

"Sufficient land has been reserved for village expansion, and to contain and improve some less undesirable open storage and industrial uses currently operating along the major access," the spokesman said.

About 115 hectares of land have been zoned 'Residential (Group A)', 'Residential (Group B)', 'Residential (Group C)' and 'Residential (Group D)' to allow sub-urban types of development with different intensities.

Meanwhile, about 54 hectares have been zoned 'Village Type Development' to recognise the development rights of the indigenous villagers.

Two sites of about 3.3 hectares have been zoned 'Comprehensive Development Area' to provide significant improvement to environment. One of the sites is located along Castle Peak Road and west of Hung Tin Road and the other is located to the west of Tan Kwai Tsuen Road.

To serve the needs of the local as well as district population, about 16 hectares have been reserved for 'Govemment/Institution/Community' and about seven hectares have been zoned 'Open Space'.

15

Two sites of about 28 hectares have been zoned 'Industrial' and 'Industrial (Group D)'. The planning intention is to allow for development of light manufacturing industry and rural workshops so as to provide employment opportunities for the area.

Some 4.7 hectares have been zoned 'Open Storage' to cater for continuing demand for open storage.

About 340 hectares of land have been zoned 'Green Belt' and 'Conservation Area' to define the limits of urban and sub-urban development areas and to retain the existing natural landscapes and topographical features in rural areas.

The draft Ping Shan OZP (No S/YL-PS/1) and Tong Yan San Tsuen OZP (No S/YL-TYST/1) are available for public inspection until August 14 during normal office hours at:

* Planning Department 16th floor, Murray Building Garden Road, Central, Hong Kong;

* Tuen Mun and Yuen Long District Planning Office Level 11, Metroplaza Tower 1

223 Hing Fong Road, Kwai Fong. New Territories; and

* Yuen Long District Office ground floor. Yuen Long District Office Building 269 Castle Peak Road, Yuen Long, New Territories.

Any person affected by the draft plans may submit written objection before August 14 to the Secretary of the Town Planning Board, c/o Planning Department, 13th floor, Murray Building. Garden Road, Central. Hong Kong.

Copies of the plans are on sale at the Survey and Mapping Office. Lands Department. 14th floor. Murray Building. Garden Road. Central. Hong Kong and the Kowloon Map Sales Office, ground floor. 382 Nathan Road. Kowloon.

End

16

Tenders invited for town park and gondola system ♦ * * * *

The Architectural Services Department is inviting tenders for the construction of a district open space in Area 35, Tsuen Wan.

The project, covering a total site area of about 42,000 square metres, comprises the construction of a town park incorporating both active and passive recreational facilities and maximising the provision of green areas.

Major facilities include tennis courts, children cycling area, bicycle hire area, gateball field, amphitheatre, children play area, model boat-pool, fitness trails, sitting-out areas, fountains and a pond.

Works will start in September for completion in December next year.

Meanwhile, the department is also calling tenders for the replacement of gondolas at Wan Chai Tower on Harbour Road, Wan Chai.

The contract consists of the removal of two existing gondola systems and the design, supply and installation of a new system for the building.

Works will also commence in September for completion in seven months.

Tender forms and further particulars of both projects can be obtained from the Architectural Services Department, 34th floor, Queensway Government Offices, 66 Queensway, Hong Kong.

Tender offers for the district open space and gondola projects will close at noon on July 5 and July 12 respectively.

End

Tenders invited for two school improvement projects

*****

The Architectural Services Department is inviting tenders for two projects under the school improvement programme.

The first project relates to the extension of total gross floor area of 2,376 square metres and conversion of total gross floor area of 12,455 square metres including drainage works to 10 existing aided schools.

17

Scope of works for the second project includes extension of total gross floor area of 3,000 square metres and conversion of total gross floor area of 12,544 square metres including drainage works to another 10 existing aided schools.

Both projects will start in September 1996 for completion in August next year.

Tender forms and further particulars can be obtained from the Architectural Services Department, 34th floor, Queensway Government Offices, 66 Queensway, Hong Kong.

Tender offers for both projects will close at noon on July 12.

End

Mainlaying works in Central Kowloon *****

The Water Supplies Department is inviting tenders for mainlaying works to improve the existing salt water flushing system in Central Kowloon.

The works will comprise the installation of about 3.2 kilometres of salt water mains with diameters ranging from 450 to 900 millimetres in Kowloon City and To Kwa Wan.

Works will commence in October this year for completion in about 24 months.

Tender forms and further particulars can be obtained from the Water Supplies Department, 44th floor, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong.

Tender offers will close at noon on July 12.

End

18

Sai Kung West Country Park extended ♦ ♦ ♦ ♦ »

The Sai Kung West Country Park has been extended by 123 hectares following approval by the Govemor-in-Council of the draft map for the Wan Tsai Extension.

A spokesman for the Agriculture and Fisheries Department (AFD) said the extension included the north-eastern part of Sai Kung West Country Park, which covered Wan Tsai Peninsula and three adjacent islands at Hoi Ha Wan.

It was identified as one of the potential country park sites in the Territorial Development Strategy Review in 1993 and the draft map was gazetted on December 1.

The spokesman said the extension of this formerly borrow area was mainly for nature conservation, countryside recreation and outdoor education.

The hills and undulating plains will provide more opportunities for members of the public to enjoy hiking and other passive outdoor recreation such as picnicking in this scenic area.

It will also facilitate the protection of the proposed marine park at Hoi Ha Wan.

Successful afforestation works had been carried out, he said, adding that AFD would continue tree planting in the area to enhance the environment.

Other management work would primarily aim at preserving the landscape and upkeeping the footpaths connected to the peninsula from Hoi Ha and Tai Tan, he said.

Facilities such as picnic tables, benches, litter bins, shelters, information boards, view compasses and way markers at strategic locations will also be provided.

The new country park was welcomed by the public and green groups, said the spokesman.

An order designating the area shown in the approved map on Wan Tsai Extension has been published in the Gazette today (Friday) and the new map is now available for inspection at the Land Registry and for sale at AFD.

End

19

Tenders for stage lighting invited

*****

The Electrical and Mechanical Services Department is inviting tenders for the operation and maintenance of stage lighting, stage engineering and visual projection installations in Ngau Chi Wan Civic Centre and Hong Kong Science Museum.

Details of the tender are contained in the Government Gazette published today (Friday).

Forms of tender and further particulars may be obtained from the Contract Section of the Electrical and Mechanical Services Department at Room 811, 98 Caroline Hill Road, Causeway Bay, Hong Kong.

Tenders must be clearly marked and addressed to the Chairman of the Public Works Tender Board. They must be placed in the Public Works Tender Box at the lift lobby on the 34th floor, Queensway Government Offices, 66 Queensway, Hong Kong, before noon on July 12.

Late tenders will not be accepted.

End

Air Quality Report for May

♦ * * ♦ ♦

The Environmental Protection Department today (Friday) released air quality information for May.

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.

20

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.

On May 10, RSP concentrations were high throughout the territory, with exceedances of the 24-hour Air Quality Objective (AQO). The situation was believed to be associated with the strong easterly winds, which blew up the settled dust in Hong Kong and in the region.

For SO2 and NO2, there was no exceedance of the 24-hour AQOs at the three stations.

The gases and particles described originated from various sources. SO2 is mostly produced when fuels that contain sulphur are burned. NO2 is formed during combustion by the combination of nitrogen and oxygen, and by the atmospheric oxidation of nitric oxide (NO), also a product of combustion.

Vehicle exhaust is an important source of NO and NO2 in terms of impact on local air quality. It is also a major source of airborne particulate matter, especially the smaller respirable particles.

Diesel-engined vehicles such as taxis, public light buses, passenger coaches, franchised buses and light and heavy goods vehicles are the greatest contributor of particulate matter. Other sources include industry, furnaces and boilers, construction activities, the sea and the soil.

It is worth noting that while the weather and climate always affect the concentrations of pollutants in the air, the only sure way of reducing the levels is to reduce emissions from the man-made sources.

End

21

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change ^million)

Opening balance in the account 2,140 0930 -183

Closing balance in the account 2,160 1000 -183

Change attributable to: 1100 -183

Money market activity -180 1200 -180

LAF today +200 1500 -180

1600 -180

LAF rate 4.00% bid/6.00% offer TWI 124.1 ♦+0.2* 14.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.06 2 years 2805 6.30 99.82 6.50

1 month 5.14 3 years 3904 6.30 98.73 6.91

3 months 5.29 5 years 5106 7.23 99.17 7.57

6 months 5.50 7 years 7305 7.60 99.15 7.91

12 months 5.90 5 years M502 7.30 98.90 7.74

Total turnover of EF bills and notes $15,793 million

Closed June 14, 1996

End

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Friday, June 14,1996

Contents EaggjKo,

Queen's Birthday Honours List 1996................................. 1

Queen's Birthday Honours List 1996 - Military Division............. 21

1

Queen’s Birthday Honours List 1996 *****

The following announcement on the Queen’s Birthday Honours List will be made in London at 0001 hour GMT on Saturday, June 15.

Publication is permitted in Hong Kong newspapers tomorrow (Saturday, June 15), but no news agency or overseas radio transmission of the announcement may carry the information without the embargo qualification.

The news may be broadcast from 6 am onward tomorrow over the local radio and television stations.

On no account should any of the recipients of honours be contacted for interviews, or for information related to their careers, or be approached in any way in connection with their awards before these have been publicly announced.

Queen’s Birthday Honours 1996

Knight Bachelor

Professor Harry FANG Sin-yang, CBE, JP

OBE (Commander of the Most Excellent Qrdenof the British Empire)

Professor MA CHUNG Ho-kei, OBE, JP

Mr James SO Yiu-cho, OBE, JP

Professor WOO Chia-wei

The Honourable Mr Justice WOO Kwok-hing

OBE (Officer of the Most Excellent Order of the British^mpire.)

Mr David Stanley DAVIES

Mr Billy LAM Chung-lun, JP

2

Dr Harry LEE Nai-shee

Professor John LEONG Chi-yan, JP

The Honourable Eric LI Ka-cheung, JP

Mr Christopher Roger MOSS

Mr John TELFORD

Mr Donald McFarlane WATSON, QPM, CPM

Mr Louis WONG Kar-chit

MBE (Member of the Most Excellent Order of the British Empire)

Mr AU-YEUNG Man-tak

Mr Christopher John BALE

Mr John Neville BROOMFIELD, CPM

Mr Anthony George CHAN Shing-kee

Mr CHONG Yuk-lau

Mr Michael Stanley Nicholas FARLIE

Mr Peter Norman GRAHAM

Mr HO Kwok-fong

Mr Peter HO Wing-ko

Mr Victor HUI Chun-fui

Mr KO Tam-kan

Mr LAI Wah-tung

Mr Jeffrey LAM Kin-fung

3

Mr Edward LAW Wing-tak

Mr Joseph LEE Man-kong, JP

Miss Sabina LEUNG Fuk-tai

Mrs Helen LUK TUET Siu-wah

Mr Farley MA Man-chiu

Mr POON Kam-kwong

Mr TONG Yun-kai

Dr Kenneth WANG Kuk-kei

Mrs Carrie WILLIS YAU Sheung-mui

Mr WONG King-wan

Mr Raymond WONG Siu-keung

Mr YIP Wah, JP

Mr YUNG Tin-tack

PPM (Queen's Police Medal for Distinguished Service)

Mr Justin CUNNINGHAM, CPM

Mr Angus John Delano STEVENSON-HAMILTON, CPM

OFSM (Queen's Fire Service Medal for Distinguished Service)

Mr HSU King-ping, CPM

4

CPM (Colonial Police Medal for Meritorious Service)

Mr CHAN Ping-chiu

Mr CHEUNG Tak-yiu

Mr Iain Charles GRANT

Mr Francis Edwin HILLIER

Mr LAI Yuen-wing

Mr LAM Chi-ning

Mr LEE Kee-cheong

Mr LEE Siu-kin

Mr LEUNG Sai-kan

Mr LEUNG Sheung-man

Mr Ian Robert MACKNESS

Mr Charles William MITCHELL

Mr NG Chi-keung

Mr Rodney John STARLING

Mr John McPhail THOMSON

Mr Colin Frederick THORNBORROW

Mr TSANG Kwong-kwai

Mr TSE Yee-sum

Mr WONG Long

Mr Stuart WRINGE

5

Mr WU Kang-fuk

Mr YU Ah-chu

Mr YU Shi-cheung

Mr John YUEN Ying-lam

Badge of Honour

Mr CHAN Wai-chung

Mrs Florence CHUANG CHENG Sai-ger

Miss Augusta CHUI

Mr HAU Kam-lam

Ms HO Kim-fai

Mr HO Wing-chuen

Mr HUI Ka-hoo

Mr KWOK Chi-leung

Mr LAM K wok-yin

Mr LAM Sai-hung

Mr LEE Lok-ping

Mr Benedict LEE Shui-sing

Mr LEE Siu-tin

Mrs Laura LING LAU Yuet-fun

Mr LUK Kwok-hung

Mr SO Pang-gen

6

Mr Daniel TO Yau-on

Mr WONG Kam-ming

Mr WONG Kin-wing

Mr Albert YOUNG Siu-chuen

Biographical notes on recipients

Knight Bachelor

Professor Harry FANG Sin-vang, CBE. JP

Professor Fang is the Medical Superintendent of St Paul's Hospital and Honorary Professor of orthopaedic surgery at Hong Kong University. He has made pioneering advances in spinal surgery and has been closely associated with rehabilitation for disabled people.

CBE

Professor MA CHUNG Ho-Kci, OBE. JP

Professor Ma is the former Professor of Obstetrics and Gynaecology and Dean of the Faculty of Medicine at Hong Kong University. She is now Secretary General of the International Federation of Obstetrics and Gynaecology.

Mr James SO Yiu-cho. OBE. JP

Mr So joined the civil service in 1962 and served as Commissioner for Transport. Director of Urban Services and Secretary for Recreation and Culture. He retired from active duty at the end of last year.

7

Professor WOO Chia-wei

Professor Woo is the founding President of the Hong Kong University of Science and Technology. He was appointed to the planning committee of the University in 1986 and elected Vice-chancellor in 1987.

The Honourable Mr Justice WOO Kwok-hing

A High Court Judge, Mr Justice Woo is the first full time Chairman of the Boundary and Election Commission. He was responsible for organising and supervising the three tiers of elections between 1994 and 1995.

OBE

Mr David Stanley DAVIES

Mr Davies was a member of the Board of the Community Chest from 1989 until recently. He chaired the Corporate Contribution Programme Organising, the Campaign and the Executive Committees for various periods during his service.

Mr Billy LAM Chung-lun. JP

Mr Lam joined Government service in 1970. He has held a number of key posts including Director of the Trade and Economic Office, San Francisco, Director of Government Supplies and Director of the New Airport Projects Co-ordination Office.

Dr Harry LEE NaEsheg

Dr Lee is a garment manufacturer. He is a member of the Technology Committee of the Industry and Technology Development Council and of the Textiles Advisory Board. He also sits on a number of other boards and committees connected with the garment industry.

8

Professor John LEONG Chi-vanJP

Professor Leong is head of the Department of Orthopaedic Surgery at Hong Kong University. He has also been active in the development of medical and health care, and in community service.

The Honourable Eric LI Ka-cheung. JP

Mr Li became a member of the Legislative Council in 1991 and now represents the Accountancy Functional Constituency. Outside the Council he is a member of a number of public and community service boards and committees.

Mr Christopher Roger MOSS *

Mr Moss is the Finance Director of the Mass Transit Railway Corporation. He has been a member of the Community Chest Admissions, Budget and Allocations Committee since 1985, and chaired the committee for several years.

Mr John TELFORD

Mr Telford joined the civil service in 1967. He was Deputy Director of Housing and Deputy Secretary of Constitutional Affairs before being appointed Deputy Secretary of Transport in 1991. He is now on pre-retirement leave.

Mr Donald McFarlane WATSON. PPM, CPM

Mr Watson joined the Royal Hong Kong Police Force in 1960 and became Head of Special Branch in the rank of Senior Assistant Commissioner. He was appointed Commissioner for Customs and Excise in 1993 and will retire from the public service shortly.

Mr Louis WONG Kar-chii

Mr Wong has been in the import/export business for over 20 years. He has been a member of the Trade Advisory Board since 1988 and is also a member of the Governor’s Business Council. He chaired the Hong Kong Exporters Association for three terms.

9

MBE

Mr AU-YEUNG Man-tak

Mr Au-Yeung has worked with the Vocational Training Council for 28 years and was recently appointed Deputy Executive Director. He is due to retire in July.

Mr Christopher John BALE

Mr Bale was Director of OXFAM Hong Kong from 1984 to 1991. He was largely responsible for developing "Trailwalker" into a major fund raising event and he is associated with several other charitable organisations.

Mr John Neville BROOMFIELD. CPM

Mr Broomfield has been a member of the Royal Hong Kong Police Force since 1964. For over 20 years he has been closely associated with most aspects of training for the Force.

Mr Anthony George CHAN Shing-kce

Mr Chan was a member of the Hong Kong Government service for 25 years and retired recently. His last appointment was as Secretary to the Public Service Commission.

Mr CHONG Yuk-lau

Mr Chong joined the Urban Services Department in 1956. He spent over 20 years in the Trees Section, planting, pruning, felling, surveying and preserving trees and retired in March this year.

Mr Michael Stanley Nicholas FARL1E

Mr Farlie has been the Director of the Hong Kong Shipowners Association since 1984. He was involved in the development of the autonomous Hong Kong Register of Ships and anti-piracy measures in the region.

10

Mr Peter Norman GRAHAM

A former British Army Officer, Mr Graham joined the Independent Commission Against Corruption in 1980. He is currently Director of Intelligence and Support in the Operations Department of the ICAC and retires in August.

Mr HO Kwok-fong

Mr Ho joined the civil service in 1960. Much of his time has been spent in the Buildings Department and he is now Senior Clerical Officer of the Development Division.

Mr Peter HO Wine-ko

Mr Ho has been associated with community work for nearly 30 years. His activities have included the Lions Club, the Scouts Association and the Hong Kong Youth Cultural and Arts Competition.

Mr Victor HUI Chun-fui

Mr Hui has been Chairman of the Executive Committee of the Hong Kong Playground Association since 1986. He is also involved in a number of sporting bodies including football, cycling and tenpin bowling.

Mr KO l am-kan

Mr Ko has been engaged in voluntary community service in Southern District for over 30 years. He has been a member of the District Board since 1981 and was elected Chairman in 1994.

Mr LAI Wah-tung

Mr Lai joined the Treasury Department of Government in 1968, transferring to the Royal Hong Kong Police Force in 1973. He was promoted Senior Clerical Officer in 1982 and has wide experience of financial planning and management in the Force.

11

Mr Jeffrey LAM Kin-fung

A manufacturer, Mr Lam is a member of the Industry and Technology Council, and has chaired the Plastics Committee of the Council since 1992. He has also been involved in the development of tertiary education to meet the needs of industry.

Mr Edward LAW Wing-tak

Mr Law joined the civil service in 1962 and is now a Senior Principal Executive Officer, the top rank in his grade. He has served in a variety of government departments and is now with the Housing Department.

Mr Joseph LEE Man-kong. JP

Mr Lee has worked in the Census and Statistics Department for over 30 years and is now the Deputy Commissioner. He has also been a member of the Executive Committee of the Family Planning Association for more than 10 years.

Miss Sabina LEUNG Fuk-tai

Miss Leung has been involved in rehabilitative care for severely mentally handicapped patients for over 10 years. She has also played a major part in the training of staff engaged in psychiatric work.

Mrs Helen LUK TUET Siu-wah

Mrs Luk has worked for the Royal Hong Kong Police Force for 33 years, initially as a typist and subsequently as a Confidential Assistant. She was posted to Kowloon Police Region in 1969 and was involved in the separation of this Region into Kowloon East and West Regions in 1992.

Mr Farley MA Man-chiu

An Australian trained forester, Mr Ma has worked for 37 years on the provision of parks, recreation and horticulture in Hong Kong. He was Chairman of the Hong Kong Flower Show in 1991, 1993 and 1995 and has lectured frequently in international fora.

12

Mr POON Kam-kwong

Mr Poon has been involved in a very wide range of community services. These have ranged from Adjudicator on the Immigration and Registration of Persons tribunals, through District Board membership, to local welfare campaigns and festivals.

Mr TONG Yun-kai

Mr Tong has been involved in the promotion of the sport of badminton in Hong Kong for over 25 years and has been President of the Hong Kong Badminton Association since 1970. He has also been Vice President of the Amateur Sports Federation and Olympic Committee of Hong Kong since 1992.

Dr Kenneth WANG Kukikd

Dr Wang has served on a number of boards and committees connected with the promotion of the clothing and textiles industries. He is a member of the Government’s Industry and Technology Development Council and Chairman of the Clothing Technology Demonstration Centre.

Mrs Carrie WILLIS YAU Sheung-mui

Mrs Willis was appointed in 1993 to be Chief Electoral Officer. She was responsible for the detailed administrative arrangements for the District Board, Municipal Council and Legislative Council elections between September 1994 and September 1995.

Mr WONG King.-wan

Mr Wong completed over 40 years service with the Post Office before his retirement in March this year and for 15 years worked in the Returned Parcel Office. He was a volunteer member of the Auxiliary Medical Services from 1958 to 1980.

13

Mr Raymond WONG Siu-keung

Mr Wong joined the Hong Kong Government service in 1971 and was appointed an Assistant Hospital Secretary in 1974. He has worked in the former Medical and Health Department and is now employed by the Hospital Authority.

Mr YIP Wah. JP

Mr Yip has been engaged in community work in the Yau Tsim District for over 20 years. He has been three times Chairman of the District Board and is also involved in educational affairs.

Mr.YUNG-Iinria.ck

Mr Yung has been active in the farming community of Hong Kong since 1950. He has been a member of, or has held office in, a variety of bodies involved in farm produce, and in particular fresh vegetables.

QPM

Mr Justin CUNNINGHAM. CPM

Mr Cunningham joined the Force in 1967 and was promoted Chief Superintendent in 1992. He has been Commandant of the Police Tactical Unit since 1993.

Mr Angus John Delano STEVENSON-HAMILTON, CPM

Mr Stevenson-Hamilton entered the Force in 1970 and became an Assistant Commissioner in 1994. His present post is Assistant Commissioner Personnel.

14

OFSM

Mr HSU King-ping. CPM

Mr Hsu has been a member of the Fire Services Department since 1966. He was promoted to his present rank of Chief Fire Officer in 1994 and most of his service has been in the operational field.

CPM

Royal Hong Kong Police Force

Mr CHAN Ping-chiu

Mr Chan joined the Force in 1968 and was promoted Station Sergeant in 1986. He has served in the Criminal Investigation Department for the last 26 years.

Mr CHEUNG Tak-viu

Mr Cheung has been a member of the Force since 1968 and reached the rank of Chief Inspector in 1990. He has worked in the Central District for the last 20 years.

Mr Iain Charles GRANT

Mr Grant has nearly 22 years service in the Force and was promoted Chief Superintendent in 1994. He has held command posts in the Uniform and Crime streams.

Mr Francis Edwin HILLIER

Mr Hillier became a member of the Force in 1969 and was promoted Senior Superintendent in 1992. He has served in the Police Tactical Unit and has extensive experience in traffic policing.

15

Mr LAI Yuen-wing

Mr Lai entered the force in 1967 and rose to his present rank of Superintendent in 1988. He has spent half his service in the Uniform Branch and 14 years in the Crime stream.

Mr LAM Chi-nine

Mr Lam became a member of the Force in 1965 and was promoted Chief Inspector in 1989. He has served in a wide range of Uniform Branch and staff duties.

Mr LEE Siu-kin

Mr Lee joined the Force in 1971 and reached the rank of Senior Superintendent in 1991. He has completed several overseas secondments and is now Deputy District Commander, Yau Tsim.

Mr LEUNG Sai-kan

Mr Leung became a member of the Force in 1971 and was promoted Station Sergeant in 1990. He served in the Small Boat Unit of the Marine Branch before transferring to the Special Duties Unit in 1990.

Mr LEUNG Sheung-man

Mr Leung has 27 years service and reached the rank of Station Sergeant in 1983. Throughout his career he has served in the Uniform Branch and has held a variety of posts.

Mr lan Robert MACKNESS

Mr Mackness entered the Force in 1975 and was promoted Senior Superintendent in 1992. He has held a wide range of posts, principally in the Crime stream.

16

Mr Charles William MITCHELL

Mr Mitchell has been a member of the Force since 1974 and reached his present rank of Superintendent in 1992. He has served in a variety of Uniform Branch appointments and has represented the Police in hockey and squash.

Mr NG Chi-keung

Mr Ng has served in the Force for 26 years and became a Station Sergeant in 1988. He has worked in the Criminal Investigation Department since 1976 and has considerable experience in narcotics and other serious criminal cases.

Mr Rodney John STARLING

Mr Starling joined the Force in 1974 and reached the rank of Superintendent in 1992. Almost his entire career has been spent in the Criminal Investigation Department and he has been with the Commercial Crime Bureau since 1979.

Mr John McPhail TI1OMSON

Mr Thomson joined the Force in 1975 and reached the rank of Senior Superintendent in 1994. The major part of his career was spent in criminal investigation duties and the Narcotics Bureau. He is now on pre-retirement leave.

Mr Colin Frederick THORNBORROW

Mr Thornborrow has 19 years service in the Force and rose to his current rank of Superintendent in 1986. He has served exclusively in the Uniform Branch and has undertaken a variety of duties.

Mr TSE Yee-sum

Mr Tse has completed 25 years volunteer service with the Royal Hong Kong Auxiliary Police Force and was promoted Senior Superintendent (Auxiliary) in 1989. Most of his appointments have been on operational duties and he has wide command experience.

17

Mr WONG Long

Mr Wong joined the Force in 1969 and reached his present rank of Station Sergeant in 1984. His first five years were spent in the Uniform Branch and since then he has worked in various crime stream posts.

Mr Stuart WRINGE

Mr Wringe entered the Force in 1968 and reached the rank of Senior Superintendent in 1991. He has held a wide range of posts including Special Branch, the Police Tactical Unit, operational, training and personnel duties.

Mr WU Kang-fuk

Mr Wu has been in the Force since 1964 and was promoted Station Sergeant in 1986. He spent five years in the Uniform Branch before transferring to the crime stream where he has remained. He will retire later this year.

MrYUAh--chu

Mr Yu has completed 22 years in the Force and reached his current rank of Chief Inspector in 1987. After service in the Uniform Branch he was posted to criminal investigation duties in 1979 where he has remained.

Mr John YUEN Ying-lam

Mr Yuen joined the Force in 1966 and was promoted Chief Superintendent in 1994. He has held a wide range of posts, and the greater part of his career has been in criminal investigation work.

Fire Services Department

Mr LEE Kee-eheong

Mr Lee has served in the Fire Services Department since 1962 and reached the rank of Principal Fireman in 1987. He has worked in a number of different operational units in the Hong Kong Command.

18

»

Mr TSANG Kwong-kwai

Mr Tsang joined the Fire Services Department in 1968 and was promoted Senior Divisional Officer in 1992. He has served in various units of the Operational and Fire Protection Commands.

Mr YU Shi-chcung

Mr Yu has completed over 33 years service in the Fire Services Department and was promoted to his present rank of Principal Fireman in 1982. He has served in the New Territories Command and the Fire Services Training School. He retires later this year.

Badge of Honour

Mr CHAN Wai-chung

Mr Chan has served the Wong Tai Sin District for over 12 years. He is a member of several territory-wide and district boards and committees.

Mrs Florence CHUANG CHENG Sai-ger

Mrs Chuang is a long term supporter of many welfare agencies. She has been an Executive Committee member of the Hong Kong Society for the Protection of Children since 1976.

Miss Augusta CHUI

Miss Chui has a long record of community service in Tuen Mun. She is the first woman to chair the Yan Oi Tong, the largest charitable organisation in Tuen Mun.

Mr HAU Kam-lam

Mr Hau has served North District for a long period. He is a member of the District Board, a village representative and chairs the District Board's Development and Environmental Improvement Committee.

19

Ms HQ Kim-fai

Ms Ho is an outstanding female rower and is first in the Asian ranking of the Women's Lightweight Double Sculls event. She has represented Hong Kong at many major games and has won a number of gold and silver medals.

Mr HO Wing-chuen

Mr Ho has chaired or been a member of a number of important area and District Board Committees since the mid-1980s. He has been particularly active in the development of arts and culture in Sha Tin.

Mr HUI Ka-hoo

Mr Hui's community service began in 1975 and he became an Eastern District Board member in 1991. He chairs or is a member of several influential committees.

Mr KWOK Chi-leung

Mr Kwok has been a member of the Board of Directors of the Yan Chai Hospital since 1987. From 1989 to 1995 he was Vice-Chairman of the Board and in 1995 he became Chairman.

Mr LAM Kwok-yin

Mr Lam is Chairman of the Sha Tin Rural Committee, Vice Chairman of the Heung Yee Kuk and an ex-officio member of the Regional Council and the Sha Tin District Board. He chaired the 1995 New Territories Walk for the Community Chest.

Mr LAM Sai-hung

Mr Lam's service to the Kwai Tsing District began in 1986. He has been particularly active in promoting sport and was largely responsible for setting up the Kwai Tsing Women's Soccer Team.

20

Mr LEE Lok-ping

Mr Lee has been a volunteer member of the Civil Aid Services for 38 years and has played a major part in many operational activities. In 1976 he transferred to the staff of the CAS Cadet Corps.

Mr Benedict LEE Shui-sing

Mr Lee became a member of the Yau Ma Tei East Area Committee in 1986 and has been active in Yau Tsim Mong District affairs. He has also promoted sport and recreational activities for young people.

Mr LEE Siu-tin

Mr Lee has been a primary school teacher since 1960 and a headteacher since 1967. He is a member of a number of education related boards and committees and also promotes sports and the arts.

Mrs Laura LING l.AU Yuet-fun

Mrs Ling is a school principal and has contributed greatly to the education of mentally handicapped children. She is also a member of many organisations providing community services, and in particular those involved with special education needs.

Mr LUK Kwok-hung

Mr Luk has been active in community service in the Kowloon City District and the Hung Hom Area Committee. His interests have included the welfare of youth and the elderly, civic education and recreation.

Mr SO Pang-gen

Mr So has a long record of service in Yuen Long District. He joined the Pok Oi Hospital Board of Directors in 1989 and was elected Vice-Chairman in 1991 and Chairman in 1995.

21

Mr Daniel TO Yau-on

Mr To became a member of the Causeway Bay Central Area Committee in 1988 and was Chairman from 1992 to 1994. He has also served on a number of Wan Chai District Committees.

Mr WONG Kam-ming

Mr Wong has been a volunteer member of the Civil Aid Services for nearly 30 years. He acquired considerable operational experience before becoming a supervisor in the CAS Cadet Corps in 1976.

Mr WONG Kin-wing

Mr Wong has been teaching for over 30 years and is Vice-Headmaster of a Yuen Long primary school. He has been active in a wide range of community affairs and was elected to the Yuen Long District Board in 1994.

Mr Albert YOUNG Siu-chuen

Mr Young has been an active participant in area committee work in Western District since 1985. He has taken a particular interest in transport and environmental matters, youth programmes and the Central and Western District Fight Crime Committee.

End

Queen's Birthday Honours List 1996 - Military Division

* * * * *

MBE

Major (GCO) Udaibahadur Gurung of The Roval Gurkha Rifles

Throughout 26 years exemplary service in the British Army Major Udaibahadur Gurung has demonstrated the highest possible professional standards and an outstanding degree of loyalty, commitment and integrity.

22

His contribution to the name and reputation of the Brigade of Gurkhas, and to the British Army, has earned him official recognition which he richly deserves.

He currently serves with the 1st Battalion The Royal Gurkha Rifles, based at Malaya Lines, Sek Kong.

Major (GCQKRetired) Milanchandra Gurung of The Queen's Gurkha Engineers

Major Milanchandra Gurung retired from the British Army in February 1996 after 31 years exemplary service. He was personally responsible for the successful administration, preparation and handing back to the Hong Kong Government of four key defence estate sites.

He showed immense energy and sense of purpose which was always reflected in his very high personal standards.

His outstanding contribution to the name and reputation of the Brigade of Gurkhas, as well as the British Army, makes him most worthy of this official recognition. He now lives in Nepal.

Captain (Retired) Wu Siu-ying of The Royal Logistic Corps

Captain Wu Siu-ying retired from the Hong Kong Military Service Corps in December 1995 after 25 years exemplar) sen ice.

Throughout his long career with 29 Transport Squadron he showed immense ability and dedication which earned him the respect of the whole of the Garrison.

He forged strong links with the community as well as being involved with the Hong Kong Soldiers' Association, an organisation which promotes the welfare of exsoldiers, their widows and families.

His achievements throughout an outstanding careers of selfless dedication are most worthy of this official recognition. He now lives in Canada.

End

DAILY INFORMATION BULLETIN

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

Saturday, June 15,1996

Contents EageNo,

CS completes US visit with meetings in Washington DC.................... I

Efforts to speed up restaurant licensing.............................

Sunday, June 16,1996

Contents Page No.

Transcript of CS's media session........................................ 4

Deadline for electrical workers to register by experience............... 6

Monday, June 17, 1996

Contents Page No.

Guidelines for residential densities revised............................ 8

Air-conditioning for centres for elderly.............................

1

CS completes US visit with meetings in Washington DC ♦ * * * ♦

The Chief Secretary, Mrs Anson Chan, has completed a three-week tour to the United States, covering seven cities: San Francisco, Seattle, Boston, New York, Dallas, Los Angeles and Washington DC.

During her visit to New York, Dallas, and Los Angeles, Mrs Chan headed the delegation of business and government officials for the Hong Kong-USA ‘96 promotion.

On her final day in Washington DC, Mrs Chan met with the Secretary of State Warren Christopher. Also present was Mr Christopher’s Deputy, Strobe Talbott, Assistant Secretary of State for East Asian and Pacific Affairs Winston Lord and other State Department Asian Affairs and Pacific Rim specialists.

Earlier in the day at the White House, Mrs Chan had discussions with the National Security Advisor Anthony Lake and several of President Clinton’s advisers on East Asian and Pacific Affairs and members of the National Security Council.

On Capitol Hill, she met Senator Trent Lott, the Mississippi Senator who this week replaced Bob Dole as the new Senate Majority Leader.

Mrs Chan gave a luncheon speech at a meeting of trustees and members of the Asia Society and also briefed the media.

Questioned about her views on China fulfilling its obligations laid out in the Joint Declaration, Mrs Chan said she believed the Chinese leaders realised that the way in which Hong Kong Gould prosper and assist China in its modernisation programme was for the territory to remain substantially as it was today.

"I’m not saying that there will not be changes,” she said.

"But I think changes bring opportunities. And Hong Kong people have perhaps demonstrated that we’re better able than most to adapt to changes and to make the most of changes and the opportunities that they bring."

Turning to the legislature, Mrs Chan said this was a key area of concern. She said the legislature that was elected last year was fully consistent with the Basic Law and the Joint Declaration.

2

"In terms of continuity and confidence, particularly in the remaining days of transition, clearly the best outcome would be to allow the current legislature to straddle 1997 to serve the normal four-year term, which would take it to 1999," Mrs Chan said, adding that a provisional legislature was neither justified nor necessary.

"It will create a good deal of confusion and uncertainty, and we therefore remain opposed to the setting up of any provisional legislature," Mrs Chan told US media.

Mrs Chan leaves the US on Saturday (June 15, US time) for Hong Kong.

End

Efforts to speed up restaurant licensing *****

The Buildings Department has proposed a simplified procedure for vetting premises intended for use as restaurants, the acting Assistant Director of Buildings (Specialist), Mr Philip.Lau, said today (Saturday).

Mr Lau said the department had recently conducted a review on restaurant licensing and identified the difficulties encountered in processing the large number of applications referred from the two licensing authorities, that is, Urban Services Department (USD) and Regional Services Department (RSD).

"For all first-time applications, the Buildings Department is able to achieve a targeted standard of informing the applicants of the fesults and licensing requirements within 30 days of the applications.

"As to re-submitted applications, longer processing time is needed, mainly because of the extra time required for vetting remedial proposals and verifying compliance with the requirements under the Buildings Ordinance.

"The longer processing time for these re-applications has caused some concern," Mr Lau said.

To tackle the problem in the long run, the department proposes to simplify the procedures by way of a three-tier system for verification of compliance of licensing requirements:

3

(a) applicant to verify compliance direct to USD/RSD in respect of requirements relating to matters of fact, for example, whether a fish tank on a canopy has been removed; whether a doorway has been widened from 800 millimetres to 850 millimetres;

(b) the applicant’s authorised person or registered structural engineer to verify compliance direct to USD/RSD in respect of requirements which involve a professional appraisal relative to well established standards; for example, whether the provision of means of escape meets with stipulated standards; whether any part of the premises is overloaded; and

(c) the applicant’s authorised person or registered structural engineer to verily compliance to Buildings Department in cases of more serious concerns about building safety.

’’These simplified procedures will bring about a significant reduction, about two-third, of the normal time required in processing restaurant licence applications. Random checking will also be carried out to monitor the certification arrangements.

"If public safety is subsequently found to be compromised as a result of the premises being licensed on the basis of inaccurate information, the Buildings Department will take action under the Buildings Ordinance to remove any danger and/or carry out other appropriate enforcement actions." Mr Lau said.

The Buildings Department is consulting the two licensing authorities and plans to implement the new procedures as soon as the results of all consultations are taken into account, including the views of the restaurant trade.

"If the new system is found to be effective, it may be extended to other kinds of licensing, such as cinemas, or child care centres," Mr Lau said.

End

4

Transcript of CS’s media session *****

Following is the transcript of the remarks made to reporters by the Chief Secretary, Mrs Anson Chan, on her return from the United States this (Sunday) evening:

CS: Hello everyone. Very happy to see you all. I’ve been away for three weeks, really far too long. But this trip has taken me to seven cities in the United States and it’s generally given me a very good opportunity to bring people up-to-date on where we currently stand, how we’re preparing for the transition and what the future holds for us. Particularly in Washington I’ve been able to follow up on the Governor's visit some six weeks ago and specifically to address our concerns on MFN extension for China, to emphasise how important this is for us. In Washington I met with Secretary of State Warren Christopher, his deputy Strobe Talbott, and his assistant Mr Winston Lord. I also met with the National Security Advisor Mr Anthony Lake and with the Secretary for the Treasury Mr Rubin. In addition I also met with key members of the House and Senate including Senator William Roth who is Chairman of the Finance Committee, the new Senate Majority Leader Mr Trent Lott and various other key officials, not only to lobby for MFN extension for China but also to discuss the prospects for permanent MFN for China, to bring senior officials and members of the House and Senate up-to-date on transition and to address specific concerns that people have had. In other cities I've also met with local government leaders, with business leaders and in Los Angeles I was particularly glad to have the opportunity to meet with many people from Hong Kong.

This has on the whole been a very worthwhile visit. As I've said, it's not only enabled us to talk about how we're preparing for the transition, it's clearly helped to strengthen our business links, to promote more cultural links and also to speak specifically to academics and members of think tank who of course have a great deal of interest in what's happening in Hong Kong. Secretary Christopher particularly reaffirmed the United States’ enduring interest in Hong Kong, their interest in seeing a smooth transition and seeing a smooth implementation of the Joint Declaration and the Basic Law.

I've on this occasion been able to on the one hand address the positive aspects of our transition and about the future, in particular to draw attention to how much has been achieved in the last 12 years on implementing the Joint Declaration and the Basic Law. But of course at the same time as the Governor found on his previous visit, I’ve also had to address specific concerns put. to me about the transition in particular centring around China's threat to put in place a provisional legislature, the scepticism over whether China will protect human right including press freedom. I think on the one hand whilst it is possible to be positive about the future we also have to acknowledge that there are problems. I've tried to point out where these problems are and I've said that of course in many instances in the final analysis the reassurances that the people of Hong Kong are looking for and our trading partners particularly in the United States are looking for must come from China.

9

- 5 -

Now in this respect I’d like to say one word about the provisional legislature because quite frankly I've been very surprised at local reporting that there is a difference of opinion between the Governor and myself. Let me make it quite clear, there is no difference of opinion. The Administration's view remains that we have a legislature that was elected in fair and open elections last September. It is a credible, legitimate legislature that enjoys the support of the people of Hong Kong. Clearly the community wishes to see this legislature straddle 1997 and for members of the legislature to serve their full four year term. When I met Mr Lu Ping in Beijing earlier, I've already made it quite clear to him that we are opposed to the setting up of a provisional legislature. We will not provide any assistance in the setting up of this provisional legislature. We remain of the view that the current legislature should continue. Moreover, I have also made it clear we will not do anything that will in anyway undermine the working of the current legislature. In this respect of course we welcome Mr Qian Qichen's statement that on this side of 1997 there will only be one legislature. To that extent it take cares of one aspect of the problem. But whilst I was in the States 1 made it quite clear to everyone I met that I see great difficulty ahead in this area of the continuity of the legislature.

Question: Mrs Chan. Were you saying this in LA that it was inevitable ...?

CS: No. I think if your were there. I've double-checked everything I have said. I've stated the position which the Government has which I've just reiterated. I was then asked, but the Chinese have made it very clear they intend to proceed. So what I said was, yes it is true that many people have told us that the Chinese will proceed with this, I then followed on what I've already told you. So let me make that quite clear. I hope you will clarify that.

Question: Did you also go on to say that that if it was to be set up, then you would want it to be as representative as possible?

CS: It's not my view. I think it is the view of the Hong Kong people and it is the view of people outside. What they are concerned about is, if the Chinese insist that the current legislature cannot continue, then how is the provisional legislature going to be formed. Is it going to be representative? Because at the end of the day the concern must be how representative this provisional legislature and the new legislature to replace it will be. These are concerns that Hong Kong people have, these are concerns that the Americans have put to me at every level.

Question: Are there splits within the civil service about the legitimacy of the provisional legislature?

CS: No. I've already stated the Administration has one view and that view I've already restated very very clearly.

End

1

- 6 -

Deadline for electrical workers to register by experience

*****

The Electrical and Mechanical Services Department (EMSD) today (Sunday) reminded electrical workers that the existing channel which allows them to register as Grade A electrical workers by experience will expire on November 1 this year.

At present, an applicant is qualified to register as a Grace A electrical worker if he satisfies the Director of Electrical and Mechanical Services (DEMS) that he has been employed as an electrical worker for at least six years, of which at least one year includes practical experience in electrical work.

’’From November 2 onwards, whoever wishes to apply for registration as a Grade A electrical worker will have to, apart from having sufficient working experience in electrical work, possess the required academic qualifications or pass the Grade A Trade Test approved by the DEMS,” said a spokesman for the department.

Meanwhile, the spokesman said, under the registration scheme, there are also Grade B and Grade C electrical workers who can perform more complex low voltage electrical work.

Any worker without formal academic qualifications who wishes to be qualified for registration as a Grade B or C electrical worker is required to pass an examination approved or set by DEMS.

The examination for registration as a Grade B worker is held regularly twice a year by the Hong Kong Examination Authority while the examination for registration as a Grade C worker will be available the first time this year.

"The examination for registration as a Grade C worker is now jointly organised by EMSD, the University of Hong Kong, the Hong Kong Polytechnic University and the Hong Kong Institution of Engineers. It will be conducted in the first week of November each year starting from 1996," he said.

The spokesman explained that there would be no minimum entry requirement for the examination, although preference would be given to current registered electrical workers, in particular Grade B electrical workers.

"A candidate who has passed the examination will still have to fulfil the electrical work experience requirement as laid down in the Electricity (Registration) Regulations if he wishes to apply for registration as a Grade C electrical worker," he said.

7

Details of the examination syllabus and sample questions are contained in a booklet ’’Notes on Examination for Registration as a Grade C Electrical Worker” which is available free from:

* Electrical and Mechanical Services Department Customer Service Office

ground floor, 98 Caroline Hill Road Hong Kong;

* University of Hong Kong

Department of Electrical and Electrical Engineering

Room 601, Chow Yei Ching Building Pokfulam Road Hong Kong; and

* Hong Kong Polytechnic University Department of Electrical Engineering Hung Hom Kowloon

The spokesman added that in accordance with the Electricity Ordinance, all electrical workers engaged in electrical work on fixed electrical installations after June 1, 4992 had to register with EMSD.

’’This is to ensure that electrical work is done only by qualified electrical workers to improve electrical safety.

"So far, 57,108 qualified electrical workers have been registered," he said.

End

8

Guidelines for residential densities revised

♦ ♦ ♦ ♦ ♦

Chapter two of the Hong Kong Planning Standards and Guidelines (HKPSG) on residential densities have been revised.

The revised chapter mainly represents a review and formulation of density controls for private residential development that have been approved under recent strategic studies, a spokesman for the Planning Department said today (Monday).

The spokesman pointed out that the revision was necessary in order to meet changes in demographics, improvement in living standards, increased aspirations and the geographical distribution of development pressures. The last review was done in 1991.

"Existing guidelines of the chapter have been revised to prevent residential ’ development from reaching a level at which residents would be adversely affected by social and environmental problems.

"It will also help to ensure an appropriate balance between residential population and the capacity of existing or planned facilities and infrastructure," he said.

The revised Chapter two has introduced a new set of population density guidelines to facilitate the initial estimation of population capacity and* land requirements at different planning stages.

"The population density tables in the old chapter have been replaced by a set of charts which convert building density or plot ratio into population capacity on sites of different areas.

"These charts can be used to obtain initial estimates of population capacity and land requirements for strategic, district and site planning purposes," the spokesman explained.

"The revised chapter also sets out the maximum domestic plot ratio for private residential development/redevelopment in specified residential zones and geographical areas such as Metroplan Area, New Towns and Rural Areas.

"It introduces a range of building height and site coverage restrictions to enable a variety of building heights to be adopted to fit in with urban design objectives and to ensure development is of an appropriate scale in relation to its landscape setting.”

9

HKPSG comprises a series of 11 chapters with each devoted to a particular aspect of land use or facility.

The revised Chapter two of HKPSG is now on sale at $38 per copy at the Government Publications Centre on ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong.

End

Air-conditioning for centres for elderly *****

Elderly people taking part in social and recreational activities or being looked after in various elderly centres will enjoy the comfort of air-conditioning during the forthcoming hot summer season, thanks to a generous donation from the Hong Kong Jockey Club Charities Trust.

In 1994-95. the Trust had allocated $7.28 million to non-governmental organisations for the installation of air-conditioners in the activity areas of various elderly centres.

Installation work for most centres was completed in 1995-96, a spokesman for the Social Welfare Department said.

End

DAILY INFORMATION BULLETIN

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

Tuesday, June 18,1996

Contents Page No,

Action plan to enhance industrial safety drawn up........................... I

HK Govt welcomes satisfactory solution on I PR protection................... 3

HK to hold bilateral consultations with US.................................. 4

Report on Vietnamese girls case submitted to Governor....................... 6

202 VMs depart on orderly repatriation flight............................... 6

Monitors' Report submitted to CS............................................ 6

Building, construction & real estate sectors survey results................. 7

Preliminary population estimate from population by-census.................. 10

CAS Chief Staff Officer appointed.......................................... 12

Record high penalty for forger of travel documents......................... 13

93 convicted pollution cases in May........................................ 14

Water storage figure....................................................... 14

Hong Kong Monetary Authority tender results............................. 15

Hong Kong Monetary Authority money market operations....................... 16

1

Action plan to enhance industrial safety drawn up ♦ ♦ ♦ ♦ ♦

A 12-point strategy aimed at ensuring industrial safety was drawn up at a high-level inter-departmental meeting held this (Tuesday) morning.

Chaired by the Secretary for Education and Manpower, Mr Joseph W P Wong, the meeting aimed at ensuring proper co-ordination within the Government and exploring the need for additional preventive measures on industrial safety following the recent spate of industrial accidents.

Speaking at a press conference after the meeting, Mr Wong outlined the package of measures which would be targeted at three main high-risk areas: work at height, construction sites and confined areas.

The 12-point strategy is:

The Labour Department will step up inspections over the next few weeks of high-risk construction sites and industrial undertakings and, in particular, those with previous unsatisfactory industrial records. All Factory Inspectors will be mobilised for the blitz.

The department will step up prosecution actions against offending contractors and sub-contractors. Prosecution figures will be published regularly to arouse public awareness.

The Labour Department will monitor closely the results of court cases relating to industrial safety. If the department considers the sentence of any particular case inadequate, it will ask the Attorney General to seek a review of the sentence.

A telephone hotline 2815 0678 has been set up in the Labour Department to handle complaints against industrial and occupational hazards and any breach of industrial safety requirements.

* The Fire Services Department will alert the relevant departments promptly of any breach of industrial safety requirements found during their routine or special fire safety inspections.

The Occupational Safety and Health Council (OSHC), in conjunction with the Labour Department, will mount an intensive educational and publicity campaign on industrial safety focusing on work at height, construction industry and confined spaces.

2

* OSHC, together with the Labour Department, will organise shortly a series of seminars for some 400 safety officers in the private sector who have direct responsibility for industrial safety.

The Education and Manpower Branch in the next month or so will publish a charter for safety at workplace setting out the rights of workers to enjoy a safe working environment and the employers' obligations to reduce their employees' exposure to risks of accidents. It will also highlight worker's obligations to follow safety instructions and to cooperate with the relevant authorities in reporting breaches of statutory requirements. OSHC will be tasked to promote the Charter.

The Government will explore the possibility of tightening the rules on suspending from tendering for government works projects those contractors with an unsatisfactory industrial safety record.

* The Government will consider taking account of the previous industrial safety records of the companies concerned in determining their eligibility to import workers under the Special Labour Importation Scheme for the New Airport and Related Projects and under the Supplementary Labour Scheme.

* The Government will consider the need to strengthen existing industrial safety legislation for operations both on land and at sea.

* The Government will urge the Legislative Council to expedite its scrutiny of two important pieces of draft legislation which will greatly enhance industrial safety. The first, the Buildings Amendment (No 3) Bill, seeks to provide a safety supervisory system at building sites and make architects and engineers criminally responsible for safety measures on site. The second, the Factories and Industrial Undertakings (Amendment) Bill 1996, seeks to empower the Commissioner for Labour to issue suspension notices or improvement notices. This will enable the Commissioner to stop immediately any operation or machinery at a construction site which may pose an imminent risk of serious injuries to workers.

The Secretary for Education and Manpower said investigation was continuing into the various major industrial accidents which took place over the past weeks. Reports on individual cases are expected to be completed in the next few weeks.

Describing the meeting this morning as a useful and productive one, Mr Wong said the Education and Manpower Branch would continue to play a co-ordinating role and monitor the situation closely.

3

"The Government attaches the greatest importance to industrial safety. We will leave no stone unturned and act in concert to reduce the exposure of workers to risks of industrial accidents,” he stressed.

Mr Wong said the ultimate solutfon to reducing industrial accidents was to put in place a safety culture.

"This calls for a tripartite effort - with the Government, employers and employees all joining forces. Indeed, the 12-point strategy seeks to achieve this aim," he said.

Taking part in the meeting this morning were the acting Commissioner for Labour, Mr Alfred Chan Wing-kit; Director of Buildings, Dr Choi Yu-leuk; Director of Marine, Mr Ian Dale; Project Manager, New Airport Projects Co-ordination Office, Mr Wong Hung-kin; Deputy Secretary for Education and Manpower, Mr Matthew Cheung Kin-chung; Deputy Commissioner for Labour, Mr Lee Kai-fat; Principal Assistant Secretary for Works, Mr Peter Berry; Chief Fire Officer, Mr Hsu King-ping; Executive Director, OSHC, Mr Yip Yuk-lun; and Principal Assistant Secretary for Education and Manpower, Mr Herman Cho.

End

HK Govt welcomes satisfactory solution on I PR protection ♦ ♦ ♦ ♦ ♦

The Hong Kong Government warmly welcomes the announcement by the US Government that the US and Chinese Governments have reached a mutually satisfactory solution on the protection of intellectual property rights.

"The announcement is indeed good news for Hong Kong. We are pleased to see that the possibility of a trade war between the US and China, our two largest trading partners, has been averted," a government spokesman said today (Tuesday).

"Measures to enhance the protection of intellectual property rights in China will have a positive impact on Hong Kong's own ability to combat copyright piracy in Hong Kong. The strengthening of trade and investment ties between the US and China will also benefit Hong Kong," the spokesman continued.

End

4

HK to hold bilateral consultations with US * ♦ ♦ ♦ ♦

Hong Kong would hold bilateral consultations with the United States tomorrow (Wednesday) in Hong Kong over US' unilqjeral decision to impose additional import document requirements on a number of textiles and clothing products from the territory, it was announced today (Tuesday).

"During the consultations, we will reiterate Hong Kong's position which the Secretary for Trade and Industry has put to the US government in her letter of June 14," a government spokesman said.

In her letter, the Secretary for Trade and Industry, Miss Denise Yue, raised fundamental objections to US' unilateral decision. She also requested the US to defer the implementation of the measures to enable Hong Kong and the US to discuss the matter with a view to finding a mutually satisfactory solution.

"We are grateful to the US government for their prompt response to our request for consultations," the spokesman said.

The US delegation will be led by the Deputy Commissioner for US Customs, Mr Michael Lane, while the Hong Kong delegation, comprises the Deputy Director-General of Trade, Mrs Rebecca Lai, and other officials from the Customs and Excise and Trade departments, will be led by the Commissioner for Customs and Excise (designate), Mr Lawrence Li.

On June 13 (US time), US Customs announced its decision to impose such import measures with effect from June 17 (US time), on five types of products from Hong Kong. These are skirts (Cat 342/442/642), suits (Cat 443/643), nightwear (Cat 351), underwear (Cat 352/652), and dresses (Cat 336/636).

Under the new US requirements, importers of these products from Hong Kong are required to submit, for each consignment, declarations completed and signed by all manufacturers and subcontractors involved in the production of the consignment.

They need also to certify that the declarations are accurate, and to pay higher entry bonds.

The consignment will then be conditionally released for entry into US, but is subject to recall by the US Customs within 210 days, if Customs determines that the country of origin of the goods in question has not been accurately represented to it.

5

The requirements also provide that if a US textile production verification team is in Hong Kong, the consignment will be detained until the team verifies that production has actually taken place in Hong Kong.

"These measures are disruptive to our trade," said the spokesman.

"We understand that the measures are intended to tackle illegal textiles transhipment. But they are objectionable because they are being taken in the absence of concrete evidence of illegal transhipment of such products in Hong Kong, and they affect both legitimate and illegitimate traders indiscriminately.

"Also, the US has imposed such discriminatory measures against Hong Kong unilaterally without any prior consultations, and without any prior discussions with the Hong Kong Government to seek to establish the facts about the perceived problems of transhipment in Hong Kong.

"For these reasons we will ask the US to rescind the measures," he said.

The spokesman said should the US need time to consider Hong Kong's request, they would be asked for an immediate deferral of the implementation of the measures while the two sides continued to discuss the matter with a view to finding a mutually satisfactory solution.

"This is because we are concerned with the effects the measures may have on our consignments arriving in the US since June 17.

"The relevant traders are unlikely to be able to meet the new requirements, and may therefore be adversely affected," he said.

He said the Trade Department had informed Hong Kong traders of the US measures. Should they require any additional information, they are welcome to contact the department’s Americas Division.

Last year, Hong Kong's exports of the five specific types of products to US amounted to $3.5 billion, representing 9.6 per cent of its total textiles and clothing exports to US, or about 4 per cent of textiles and clothing exports to the world.

End

Report on Vietnamese girls case submitted to Governor * * * * *

A Government House spokesman today (Tuesday) confirmed that the Commissioner of Correctional Services had submitted a report to the Governor on the case of the two Vietnamese girls who had been separated from their parents in the aftermath of the riots occurred in Whitehead Detention Centre on May 10 and 11.

"The Governor is considering the report, which will be made public in due course," the spokesman said.

End

202 VMs depart on orderly repatriation flight *****

A group of 202 Vietnamese migrants (VMs) returned by air to Hanoi, Vietnam, today (Tuesday) on the 42nd flight under the Orderly Repatriation Programme (ORP).

All of the returnees, comprising 74 men, 53 women, 34 boys and 41 girls, are from North Vietnam.

The majority of them arrived in Hong Kong in 1989, with the remaining in 1988, 1991 and 1995.

The group brought the total number repatriated on ORP flights since November 1991 to 3,638.

End

Monitors' Report submitted to CS

*****

The monitors appointed to observe the Orderly Repatriation Programme operation this (Tuesday) morning have submitted their report to the Chief Secretary.

The two monitors comprised a non-official Justice of the Peace, Dr Andrew Chuang Siu-leung; and a representative from a non-governmental organisation, Ms Nadine de Lamotte from Medecins Sans Frontieres.

End

7

Building, construction & real estate sectors survey results ♦ ♦ * * ♦

The gross output of the construction sector in 1994 amounted to $174.1 billion, representing an increase of 14.9% over 1993. This comprised a gross value of $166.9 billion for the construction work performed and an income of $7.2 billion from other sources.

Net of total operating expenditure, the gross operating surplus rose by 10.5% to $10.8 billion in 1994, amounting to 6.2% of the gross output. The proportion was 0.3 of a percentage point lower than in 1993.

These are some of the major findings of the 1994 Survey of Building, Construction and Real Estate Sectors conducted from April 1995 to early this year and released by the Census and Statistics Department today (Tuesday).

All dollar figures mentioned in this press release are in terms of nominal value. The percentage changes derived from these figures have not been adjusted for price changes. Caution should therefore be taken in interpreting the survey results.

In terms of percentage of gross output, the operating expenditure incurred by construction establishments amounted to 93.8% in 1994.

This comprised 20.4% for compensation of employees and payments to labour-only sub-contractors; 19.2% for consumption of materials, supplies, and maintenance services; 45.1% for payments for fee sub-contract work; and 9.1% for other miscellaneous operating expenses.

Compared with 1993, the percentage share of compensation of employees and payments to labour-only sub-contractors in total gross output was lower by 1.6 percentage points; and that for consumption of materials, supplies, and maintenance services by 2.3 percentage points.

On the other hand, the percentage share of payments for fee sub-contract work was up by 2.8 percentage points; and that for other miscellaneous operating expenses by 1.4 percentage points.

The value added of the construction sector, which is a measure of its contribution to Hong Kong's gross domestic product, amounted to $46.3 billion in 1994. This represented an increase of 7.2% over 1993.

The value added content of the gross output of the construction sector amounted to 26.6%, comprising 20.4% for compensation of employees and payments to labour-only sub-contractors and 6.2% for gross operating surplus.

8

Compared with 1993, the former proportion decreased by 1.6 percentage points and the latter decreased by 0.3 of a percentage point.

The survey results also showed that some 18,900 construction establishments operated in 1994.

Some 40.6% of the construction establishments were engaged in decoration, repair and maintenance of erected buildings and structures. They accounted for $25.1 billion or 14.4% of the gross output.

On the other hand, the general trade contractors operating at construction sites, though totalling only about 5.7% of the establishments, accounted for $106 billion or 60.9% of the gross output.

The rest of the construction establishments consisted mostly of special trade contractors, such as contractors specialising in electrical and mechanical fittings. These contractors constituted 53.7% of the establishments in the construction sector, and accounted for $43.1 billion or 24.7% of the gross output.

The survey did not cover labour-only sub-contractors who mainly supplied labour to work on a job-to-job basis. However, the gross value of construction work performed by these sub-contractors had already been included in that performed by those contractors commissioning their services.

Apart from construction establishments, the survey also enumerated establishments engaged in (i) real estate development, leasing, brokerage and maintenance management services, and (ii) architectural, surveying and project engineering services.

The gross output performed by establishments engaged in real estate development, leasing, brokerage and maintenance management services amounted to $121.4 billion in 1994, representing an increase of 33.8% over 1993.

This comprised $50.5 billion for service and rental income, $69.3 billion for the gross margin of real estate development projects (excluding land price appreciation) and $1.5 billion for other incomes.

Among the real estate development projects, the value accrued to private sector projects in 1994 was $103.4 billion, representing an increase of 32.9% over the corresponding value in 1993. The increase was largely due to increased work done in residential buildings, office buildings and multi-purpose commercial premises.

The total project outlays amounted to $40.9 billion which included, for instance, payments to contractors and interest payments.

9

The gross operating surplus amounted to 79.6% of the gross output in 1994. This was 0.1 of a percentage point lower than in 1993.

The total operating expenditure of these establishments accounted for 20.4% of the gross output. Compared with 1993, this increased by 0.1 of a percentage point.

The total value added of these establishments was $105.2 billion in 1994, representing an increase of 33.1% over 1993. It constituted 86.7% of the gross output performed. This was 0.5 of a percentage point lower than in 1993.

These figures did not include establishments which developed real estate projects for their own use, nor did they include those which owned land without developing it during the reference year.

Also excluded were real estate leasing and other related activities undertaken by individuals or firms which do not employ any persons.

A total of 8,440 establishments operated in the real estate development, leasing, brokerage and maintenance management services sector in 1994.

As regards establishments engaged in architectural, surveying and project engineering services, the gross output performed was $9.6 billion in 1994, representing an increase of 29.9% over 1993. This consisted of $9.3 billion for service income and $0.3 billion for other incomes.

The gross operating surplus amounted to 13.5% of the gross output in 1994, representing an increase of 0.6 of a percentage point over 1993.

The total operating expenditure of these establishments accounted for 86.5% of the gross output in 1994. This was 0.6 of a percentage point lower than in 1993.

The total value added of these establishments was $5.9 billion in 1994, representing an increase of 28.4% over 1993. It constituted 61% of the gross output performed. Compared with 1993, this decreased by 0.7 of a percentage point.

Some 1,340 establishments operated in the architectural, surveying and project engineering services sector in 1994.

More detailed results will be given in a full survey report to be published around August.

Enquiries regarding these survey results may be directed to the Building, Construction and Real Estate Statistics Section of the Census and Statistics Department, Tel 2882 4684.

End

10

Preliminary population estimate from population by-census ♦ ♦ ♦ ♦ ♦

A preliminary estimate of the population of Hong Kong as compiled from the 1996 Population By-census conducted in March shows a resident population of 6,210,000 on March 15, the Census and Statistics Department announces today (Tuesday).

The estimate includes 190,000 residents who were reported to be temporarily away from Hong Kong on the by-census reference date.

For the geographical distribution of the resident population, 1.3 million were on Hong Kong Island, or 21 per cent of the total; 2 million in Kowloon or 32 per cent; and 2.9 million in the New Territories, or 47 per cent. There were still some 10 000 residents being the marine population.

The by-census data are being processed and summary results will be released in November.

As the preliminary population figures were based on work records compiled by enumerators, they may differ marginally from the estimates which will be available later based on data being validated and processed by the computer.

A spokesman of the Census and Statistics Department said in February, a population estimate of 6.31 million people as at end-1995 had been released.

He said: "The figure of 6.31 million is an estimate of the total number of people in Hong Kong as at end-1995, hence visitors and Vietnamese migrants are included.

’’Taking into account such factors and the difference in time reference, the by-census preliminary figure of 6.21 million for the resident population as at mid-March 1996 indicates that the series of half-yearly population estimates released have been of the right order of magnitude.”

The population estimate in respect of mid-1996 will be compiled based on the by-census population estimate and figures on births, deaths, arrivals and departures during March to June, and will be released in the middle of September.

Retrospective adjustments will be made to previously published population estimates for recent years for a coherent series of half-yearly population estimates.

11

Resident population by District Board district 1991 and 1996

District Board District Resident Population Change

1991 1996 # Number # Percent

Hong Kong Island Central & Western »!• 253 3S3 261 000 +7 000 +2.8

Wan Chai 180 309 168 000 -12 000 -6.8

Eastern 560 200 593 000 +32 000 +5.8

Southern 257 101 288 000 +31 000 + 12.1

Sub-total 1 250 993 1 309 000 +58 000 +4.7

Kowloon

Yau Tsim Mong 282 060 259 000 -23 000 -8.3

Sham Shui Po 380 615 361 000 -20 000 -5.3

Kowloon City 402 934 377 000 -26 000 -6.4

Wong Tai Sin 386 572 397 000 + 10 000 +2.7

Kwun Tong 578 502 587 000 +8 000 + 1.4

Sub-total 2 030 683 1 980 000 -51 000 -2.5

New Territories

Kwai Tsing 440 807 471 000 +30 000 +6.8

Tsuen Wan 271 576 272 000 +0.1

Tuen Mun 380 683 464 000 +84 000 +22.0

Yuen Long 229 724 343 000 + 113 000 +49.2

North 165 666 233 000 +67 000 +40.4

Tai Po 202 117 284 000 +82 000 +40.3

Sha Tin 506 368 584 000 +78 000 .+15.4

Sai Kung 130418 198 000 +68 000 +51.8

Islands 47 459 63 000 + 16 000 +32.8

Sub-total 2 374 818 2 911 000 +536 000 +22.6

Marine 17 620 10 000 -8 000 -43.9

Total 5 674 114 6 210 000 +536 000 +9.4

Less than 500.

Figures are rounded to the nearest thousand. Owing to rounding, there may be a slight discrepancy between the sum of individual items and the corresponding total. Similarly, the percentage figures may not correspond exactly to the figures which are obtained by dividing the given population estimates.

End

- . £1 -- 12 -

inf i ll 1 irn i(i *< . . ■ .<

CAS Chief Staff Officer appointed

*****

. . . r. ’• j .

The Government today (Tuesday) announced that Mr Fung Kwok-him will succeed Mr F S Kavanagh as Chief Staff Officer, Civil Aid Services (CAS), from June 29.

Mr Kavanagh will proceed on pre-retirement leave on that date having served the Government for 36 years.

i

Commenting on the appointment, the Secretary for the Civil Service, Mr W K Lam, said: "Mr Fung is very experienced in the operation of the CAS. I am confident that he will lead the CAS to continue to serve the community in their fine tradition."

Mr Lam also commended Mr Kavanagh for his devoted service to the Government and the community during the past 36 years.

Following are the brief biographical notes on Messrs Fung and Kavanagh:

Mr Fung Kwok-him

Aged 57, Mr Fung is at present CAS Staff Officer. He joined the Hong Kong civil service in August 1963 as an Assistant Training Officer. He was promoted to his present rank in December 1993.

Mr F S Kavanagh

Aged 57, Mr Kavanagh joined the Hong Kong civil service in October 1960. He joined CAS in January 1989 as Chief Staff Officer.

End

13

Record high penalty for forger of travel documents ♦ * ♦ ♦ ♦

The mastermind of a forged travel document syndicate, which smuggled mainlander to overseas with fake travel documents, was today (Tuesday) jailed for five years, a record high penalty for offence in relation to possession of forged travel documents.

Commenting on the sentencing, an Immigration Department spokesman said: "It is an offence in law to have in possession of forged, false or unalwfully altered travel documents. Offenders are liable to prosecution and upon conviction, the maximum penalty will be a fine of $150,000 and imprisonment for 14 years.”

The man was charged with three counts of offences in relation to conspiracy to possess, possession of forged, false, unlawfully obtained or unlawfully altered passports and equipment for making a false instrument.

At the Wan Chai District Court today, the defendant pleaded guilty to one court of possessing 16 pieces of unlawfully altered travel documents, namely 19 copies of British National (Overseas) (BNO) passports, one British Dependent Territories Citizens (BDTC) passport and two Singaporean passports, and one count of conspiracy to possess 11 pieces of forged or unlawfully altered travel documents, namely six People’s Republic of China (PRC) passports, three BNO passports and two BDTC passports.

The Court heard that Immigration investigators, acting on information, arrested the defendant on April 20, 1996 at the Hong Kong International Airport when he attempted to leave Hong Kong for Guangzhou.

He was then taken to his residence at Sha Tin in which a total of 16 forged, false, unlawfully obtained or unlawfully altered travel documents were found. Also in the haul, immigration investigators found 470 blank Brazilian visas and 960 Brazilian stamp duties.

The arrest was prompted by an earlier operation in which Immigration investigators found a postal parcel, mailed from Brazil and addressed to the defendant, containing six forged PRC passports and five forged BNO and BDTC passports.

Enquiries revealed that the defendant got those travel documents from a friend in Brazil. The friend told defendant that these travel documents would be brought to Thailand for re-photosubstitution.

End

14

93 convicted pollution cases in May *****

A total of 93 convictions were recorded in courts last month for breaching antipollution legislation enforced by the Environmental Protection Department.

Among them, 35 were made under the Water Pollution Control Ordinance, 23 under the Waste Disposal Ordinance, 19 under the Noise Control Ordinance, 13 under the Air Pollution Control Ordinance and three under the Ozone Layer Protection Ordinance.

The fines ranged from $2,000 to $75,000. Three companies received a fine of $75,000 for their offences.

Man Luen Hong Motor Company Ltd was fined $75,000 for discharging polluting matter in the Deep Bay Water Control Zone while Gammon Construction Ltd'was fined the same amount for permitting the use of powered mechanical equipment not in accordance with permit conditions.

Cheung Hing Dyeing Factory Ltd was also fined $75,000 for failing to comply with Water Pollution Control (General) Regulation.

End

Water storage figure *****

Storage in Hong Kong’s reservoirs at 9 am today (Tuesday) stood at 86.1 per cent of capacity or 504.539 million cubic metres.

This time last year the reservoirs contained 387.646 million cubic metres of water, representing 66.1 per cent of capacity.

End

- 15 -

Hong Kong Monetary Authority tender results

♦ ♦ ♦ ♦ ♦

Tender date 18 Jun 1996 18 Jun 1996

Paper on offer EF bills EF bills

Issue number Q625 H667

Issue date 19 Jun 1996 19 Jun 1996

Maturity date 18 Sept 1996 18 Dec 1996

Coupon - -

Amount applied HK$7,200 MN HK$4,330 MN

Amount allotted HK$l,500MN HK$800 MN

Average yield accepted 5.23 PCT 5.44 PCT

Highest yield accepted 5.23 PCT 5.45 PCT

Pro rata ratio About 88 PCT About 60 PCT

Average tender yield 5.25 PCT 5.48 PCT

Hong Kong Monetary Authority

Tenders to be held in the week beginning 24 Jun 1996

Tender date 25 Jun 1996

Paper on offer EF bills

Issue number Q626

Issue date 26 Jun 1996

Maturity date 25 Sept 1996

Tenor 91 days

Amount on offer

HKDl,500+300MN

End

16

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

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,160 0930 -203

Closing balance in the account 1,740 1000 -203

Change attributable to: 1100 -203

Money market activity -200 1200 -200

LAF today -220 1500 -200

1600 -200

LAF rate 4.00% bid/6.00% offer TWI 124.1 *-0.0* 18.6.96

Hong Kong Monetary Authority -

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.05 2 years 2805 6.30 100.01 6.39

1 month 5.11 3 years 3904 6.30 99.03 6.79

3 months 5.24 5 years 5106 7.23 99.65 7.45

6 months 5.45 7 years 7305 7.60 99.81 7.78

12 months 5.85 5 years M502 7.30 99.28 7.63

Total turnover of EF bills and notes - $12,211 million

Closed June 18, 1996

End

DAILY INFORMATION BULLETIN

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

Wednesday, June 19,1996

Contents Page. No*

HK/US joint statement on textiles consultations.......................... 1

Witness Protection Bill to be gazetted................................... 2

Public urged to report unsafe industrial occurrences..................... 4

Handbook and video to assist new arrivals................................ 5

Upgrading of two footbridges in Wan Chai................................. 6

Fees for dangerous goods services revised................................ 7

Tai Po lot to let........................................................ 8

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

Thursday, June 20, 1996

Contents


Overseas scholarships awarded to 13 young talents

10

1

HK/US joint statement on textiles consultations

*****

Delegations from the United States and Hong Kong governments met today (Wednesday) to discuss issues concerning textiles trade, especially the recent steps announced by the US Customs concerning the import of certain textiles categories from Hong Kong.

The US side, led by the Deputy US Customs Commissioner, Mr Mike Lane, comprised representatives from the US Consulate General and the US Customs. The Hong Kong side, with representatives from the Customs and Excise and the Trade departments, was led by the Commissioner of Customs and Excise (designate), Mr Lawrence Li.

The two sides agreed it was in the interest of all legitimate traders and the two governments to act aggressively against companies engaged in transhipping textiles and apparel.

The Hong Kong delegation, however, reiterated their concern and objection to the recent steps announced by the US Customs which were taken without prior consultation, against certain textiles exports from Hong Kong and which could affect the commercial interests of legitimate traders.

In reply, Mr Lane said the new US measures were aimed principally at US importers and, since the steps were simply modifications of existing practices, should not pose a significant extra burden on legitimate traders.

Nevertheless, the US side recognised the concerns of the Hong Kong Government and, as a result, the two sides have pledged to work together intensively over the near term to ameliorate the impact of the US steps on legitimate manufacturers.

This was a point that the US Consulate General and representatives of the US Customs Service would also make in a subsequent meeting with a delegation from the Hong Kong textiles industry, Mr Lane said.

That was, he said, that the US Government intended to do all it could to facilitate trade by legitimate manufacturers, while maintaining and improving the US vigilance against transhipment.

The Hong Kong delegation welcomed the assurance given by Mr Lane that the US Customs would take steps to ameliorate the disruption to trade.

2

These included a commitment by the United States to make its best efforts to perform verifications within 48 to 72 hours of the authenticity of suspected shipments detained in the US. The US side would also consider ways by which the single entry bond requirement could be waived in respect of certain shipments.

Mr Lane promised to continue to work closely with the Hong Kong Government on this important issue.

The US side expressed that they would like to pursue the idea of joint verification with the Hong Kong Customs. They noted Hong Kong's new certification arrangement, which contains as a key element production verification procedures, could provide a basis for longer term co-operation between the two Customs services.

The Hong Kong delegation also agreed that an effective way of enhancing the general awareness of the problem of illegal transhipment in the community is to publish the prosecuted cases of significance and the punishment awarded in respect of such cases.

The two delegations agreed to meet again soon to discuss concrete measures that can be developed to enhance joint efforts to combat illegal transhipment of textiles.

Mr Li and Mr Lane, taking note of the recently concluded Hong Kong-US Customs Mutual Assistance Agreement, said it was within the spirit of the long time and close relations between the two Customs services to work together on such common concerns.

End

Witness Protection Bill to be gazetted *****

The Government will introduce a bill to provide a legislative framework for existing Witness Protection Programmes (WPPs) and legal authority for the change of identity of high-risk witnesses, a government spokesman said today (Wednesday).

The Witness Protection Bill, to be gazetted on Friday (June 21), aims to enhance the effectiveness of existing witness protection arrangements and encourage members of the public to be more willing to come forward to give evidence.

- 3 -

The spokesman said the Bill sought to give legal backing to the key features of existing WPPs being operated by the Police and the ICAC.

The Bill also provides clear statutory powers for government officials to change the identity of a protected witness, through the issue of new documents pertaining to the identity of the witness based on fictitious information.

The spokesman said under the proposed system for the change of identity, all identification documents including those of the witness' spouse and children could be covered.

"We hope the new scheme would provide greater reassurance to protected witnesses," he said.

He explained that under the scheme, any change of identity for a witness would require approval from the Governor upon the personal recommendation by the Commissioner of Police or the Commissioner of the ICAC.

"The high level approving authority should ensure that the scheme will not be abused," he said.

To demonstrate the Government's commitment to witness protection, the spokesman said the Bill also proposed to introduce penalties to certain offences.

"The Bill proposes to make it an offence for the disclosure of any details under the WPP, including the identity of any officer involved, without lawful authority or reasonable excuse by people who have been admitted or have been assessed but refused admission to the WPP.

"It is proposed that such an offence should carry a maximum penalty of five years' imprisonment while any disclosure of information which compromises the security of the witness should be punishable on conviction to a maximum 10 years' imprisonment.

"At the same time, government officials performing functions under the WPPs are also given reassurance as they will be protected from civil or criminal liability," the spokesman said.

The Bill is expected to be introduced into the Legislative Council on July 3.

End

? ■

- 4 -

Public urged to report unsafe industrial occurrences ♦ ♦ ♦ ♦ ♦

The Deputy Chief Factory Inspector of the Labour Department's Occupational Safety and Health Branch (OSHB), Mr Wong Ching-kwok, today (Wednesday) appealed to members of the public to report unsafe occurrences in industrial undertakings through the industrial safety hotline 2815 0678.

He said the hotline had been set up at OSHB in the department's Headquarters and was being operated on a 24-hour basis.

"This hotline is intended to facilitate members of the public to lodge complaints about unsafe occurrences in any industrial undertakings, including construction sites, factories, catering establishments and other notifiable workplaces.

"Members of the public wishing to report industrial accidents and make enquiries on industrial safety matters are also welcomed to contact our factory inspectors through the hotline," Mr Wong said, stressing that callers' identity will be kept as confidential information.

"We will take immediate action as far as possible upon receiving information through the hotline and will consider taking out prosecutions if our investigations reveal any breaches of industrial safety laws," he said.

He also asked all workers engaged in industrial work activities, especially construction workers, to make use of the hotline when they encounter personal safety problems.

"They should contact our factory inspectors if they have any doubts as a simple call may save their lives and the lives of their fellow workers," said Mr Wong.

End

5

Handbook and video to assist new arrivals ♦ ♦ ♦ ♦ ♦

About 100,000 copies of a handbook listing dedicated and general services for new arrivals from China will be available from today (Wednesday) to assist them in adapting to the local way of life and to meet their special needs.

Distributing the first copy of the handbook at the Registration of Persons -Kowloon Office in the Empire Centre today, the Director of Home Affairs, Mrs Shelley Lau, said the handbook carried clearly indexed information on a wide range of services provided by government departments as well as voluntary agencies.

"We hope the handbook will be useful to the new arrivals in helping them with their enquiries and obtaining the services they needed.

"We are keen to assist them in integrating into the local community as quickly as possible," she said.

The 105-page handbook published by the Home Affairs Department (HAD) contains concisely presented facts on social welfare, housing, education, employment, medical care, family planning, anti-corruption, transport, immigration and emergency services.

Written in simplified Chinese, the handbook also contained the addresses and telephone numbers of various government departments and public utility companies.

It will be available for collection from today at the Lo Wu Immigration check point, Registration of Persons - Kowloon Office in Empire Centre in Tsim Sha Tsui and all district offices.

HAD has been tasked with monitoring and assessing the services being provided for new arrivals from China since October last year following the increase in daily quota for one-way permit holders from 105 to 150 starting July 1995.

Meanwhile, a video aiming to promote the new arrivals’ understanding of the general living condition and social services available for them was also shown in the Registration of Persons Office today.

Initiated by the Social Welfare Department, the video was produced by the International Social Service-Hong Kong (ISS-HK) a voluntary agency with extensive experience in providing services for new arrivals from China. It contains information on the wide range of services from government and non-governmental organisations available to them and to encourage them to seek help as early as possible.

6

The 22-minute video, in Cantonese or Putonghua and interspersed with captions at appropriate intervals, contains information on post-migration service, medical service, housing, education, local employment service, labour regulation, immigration regulation and the enquiry services of the respective district offices.

The Social Welfare Department will distribute 250 copies of the video to relevant government departments, hospitals, clinics and non-governmental welfare organisations. The video is also available on loan from ISS-HK for a handling fee of $10.

Joining Mrs Lau in today's distribution exercise included the Deputy Director of Home Affairs, Mr Dominic Law; the Assistant Director of Social Welfare (Family and Child Welfare), Mrs Patricia Chu and the Assistant Director of Education (Services), Mr David Pun.

End

Upgrading of two footbridges in Wan Chai ♦ ♦ ♦ ♦ ♦

The Highways Department today (Wednesday) awarded a works contract to Cheung Kee Fung Cheung Construction Company Limited to upgrade the footbridges at Percival Street and Fleming Road across Gloucester Road.

The $36-million contract is mainly for the construction of a replacement footbridge to the existing one at Percival Street.

The new covered footbridge will be extended across Gloucester Road, Gloucester Road Service Road and Percival Street to link up with Sino Plaza

The contract also includes the extension of the existing footbridge at Fleming Road to cross Gloucester Road Service Road and improvements with a cover for the whole footbridge.

A Highways spokesman said: "On completion of the works, the two footbridges will provide direct access for pedestrians to cross Gloucester Road Service Road at Percival Street and Fleming Road to enhance road safety and traffic flow."

7

Works will start soon for completion in December 1997.

The department's Hong Kong Region Office has commissioned the works project to Acer Consultants (Far East) Limited, who has designed the works and will supervise their construction.

End

Fees for dangerous goods services revised

*****

Fees for services set out in four regulations related to mining and the manufacture, storage, conveyance and usage of explosives will be revised with effect from November 1, 1996.

The four regulations are the Mining (General) (Amendment) Regulation 1996, Mines (Safety) (Amendment) Regulation 1996, Dangerous Goods (Government Explosives Depots) (Amendment) Regulation 1996 and Dangerous Goods (General) (Amendment) Regulation 1996.

A government spokesman said the revised fees were necessary to recover the administrative and operating costs involved.

He expected that the effect of the new fees on the construction industry as a whole would be minimal as the costs of explosives used for blasting constituted a very small part of the total cost of construction projects.

The old and new fees for some of the major services set out in the four regulations are as follows :

Old New

Permit for discharge of explosives $31,200 $38,920

Licence to store explosives $23,800 $26,060

Permit to move explosives $ 105 $ 170

Renewal of a mine blasting certificate $ 1,200 $ 1,910

Delivery of explosives exceeding 50 kilograms $ 4,075 $ 4,850

but not exceeding 100 kilograms

8

The spokesman said the Dangerous Goods Standing Committee which has representatives from the private sector, including those from the chemical, shipping, petroleum and godown industries, had been consulted and had no objection to the revision.

Details of the new fees will be published in the government gazette on June 21, 1996 (Friday).

End

Tai Po lot to let ♦ ♦ ♦ ♦ ♦

The Lands Department is inviting tender for the short-term tenancy of a piece of government land in Tai Po, New Territories.

The lot, with an area of about 3,250 square metres, is located at Tai Po Area 1. It is intended for use as a fee-paying public car park for the parking of private cars, light vans and goods vehicles.

The tenancy is for 18 months, renewable monthly.

The closing date for submission of tender is noon on July 5.

Tender form, tender notice and conditions may be obtained from the Lands Department, 14th floor, Murray Building, Garden Road, and the district lands offices of Kowloon and Tai Po.

Tender plan can also be inspected at these offices.

End

9

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

S million Time (hours) Cumulative change (Smiliion)

Opening balance in the account 1,740 0930 +218

Closing balance in the account 1,950 1000 +218

Change attributable to: 1100 +218

Money market activity +230 1200 +220

LAF today -20 1500 +230

1600 +230

LAF rate 4.00% bid/6.00% offer TW1 124.1 ♦0.0* 19.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term . Issue Coupon Price Yield

1 week 4.94 2 years 2805 6.30 99.99 6.40

1 month 5.05 3 years 3904 6.30 98.99 6.80

3 months 5.21 5 years 5106 7.23 99.58 7.47

6 months 5.44 7 years 7305 7.60 99.64 7.81

12 months 5.81 5 years M502 7.30 99.17 7.66

Total turnover of EF bills and notes - $22,437 million

Closed June 19, 1996

End

- 10 -

Overseas scholarships awarded to 13 young talents ♦ ♦ ♦ ♦ ♦

Thirteen talented young musicians and dancers, aged between 20 and 32, have been awarded overseas scholarships for the year 1996-97 by the Hong Kong Jockey Club Music and Dance Fund.

Seven of them will be going to the United Kingdom, four to the United States, one to Australia and one to the Netherlands. They will take up courses in dancing, singing or musical instruments such as piano, flute, bass trombone and percussion.

A spokesman for the Broadcasting, Culture and Sport Branch said today (Thursday) the Hong Kong Jockey Club Music and Dance Fund was set up in 1979 with a donation of $10 million from the Royal Hong Kong Jockey Club for the promotion and development of music, dance and other related activities. In 1994, a capital injection of $22 million was provided by the Club to meet increased needs.

The Fund, a non-statutory trust fund administered by a board of trustees, has so far benefited about 150 people for overseas scholarships and the awards this year will cost more than $2 million.

It also provides grants to schools and non-profit making organisations in procuring or repairing musical instruments, dance equipment, scores and engaging part-time instructors for organising music and dance classes. In addition, there are ad hoc grants to finance projects for the promotion of music and dance activities.

End

DAILY INFORMATION BULLETIN

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

Friday, June 21,1996

Contents Page No,

Ninth meeting of JLG expert group on transitional Budget............... 1

Latest unemployment and underemployment statistics..................... 1

Changes to divorce law come into force................................. 2

New performance pledge for Water Supplies Department................... 3

Social relevance in education stressed................................. 4

Privacy Commissioner for Personal Data appointed....................... 6

Senior appointments at Hong Kong Monetary Authority.................... 7

Education Commission member appointed.................................. 8

Gasholders Regulation ................................................. 8

122 VMs depart on orderly repatriation flight.......................... 9

Monitors' Report submitted to CS....................................... 9

Livestock waste control areas expanded................................ 10

/Improved waste....

Contents

PageNo.

Improved waste charging arrangements proposed.......................... 11

Public invited to enrol as 'Friends of Red Ribbon Centre'.............. 11

Value of manufacturers' orders-on-hand in April........................ 13

Survey of transport and related services results released.................. 14

Resource material on PADS to be transferred to UC library.................. 18

Feature article on findings of household expenditure survey................ 19

Grading of beach water quality............................................. 20

Unlicensed guesthouse operator fined....................................... 23

Fresh water cut in Central................................................. 24

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

1

Ninth meeting of JLG expert group on transitional Budget ♦ ♦ ♦ ♦ ♦

The Sino-British Joint Liaison Group will hold their ninth round of Expert Talks on June 24 and 25 in Hong Kong to discuss the preparation of Hong Kong’s transitional Budget and related matters.

The British team will be led by Mr K C Kwong, Secretary for the Treasury of the Hong Kong Government. The Chinese team will be led by Mr Chen Zuo'er, Chinese Representative on the Sino-British Joint Liaison Group. They will be assisted by experts.

End

Latest unemployment and underemployment statistics

*****

The seasonally adjusted unemployment rate for the period February - April 1996 was 3.3%, and the underemployment rate was 1.8%, according to the latest labour force statistics released today (Friday) by the Census and Statistics Department.

The provisional seasonally adjusted unemployment rate for the period March -May 1996 edged slightly lower to 3.2%, while the provisional underemployment rate was marginally higher, at 1.9%.

Commenting on the latest figures, a Government spokesman said that labour market remained generally stable in recent months. Decreases in the unemployment rate were observed in the community, social and personal services and construction sectors, and to a lesser extent, also in the manufacturing sector. As to the underemployment rate, the slight increase was concentrated in the manufacturing sector. The underemployment rates in the other major sectors remained largely stable.

Total employment showed a rapid increase of 4.1% in the three months ending April 1996 over a year earlier. But labour supply grew even faster, by 4.4%. As a result, the unemployment rate remained at a relatively high level.

During the period February - April 1996, the number of unemployed persons with previous jobs was estimated at 90,700. Another 5,900 unemployed persons were first-time job-seekers. The number of underemployed persons was estimated at 58,000.

2

The unemployment and underemployment statistics were obtained from a continuous General Household Survey. The survey for February - April 1996 covered a quarterly sample of some 19,800 households or 66,700 persons, selected scientifically to represent the land-based civilian non-institutional population in Hong Kong. Data were obtained from the survey by interviewing each 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.

’Seasonally adjusted’ refers to adjustment for seasonal variations in the proportion of first-time job-seekers in the labour force.

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 March 1996 will be on sale at the Government Publications Centre on ground floor, Low Block, 66 Queensway, Hong Kong, by the end of June 1996.

End

Changes to divorce law come into force *****

A number of important changes to the divorce law will come into operation next Monday (June 24).

Commencement notices for bringing into operation amendments to the Matrimonial Causes Ordinance, the Matrimonial Causes Rules and the Matrimonial Causes (Fees) Rules are gazetted today (Friday).

A spokesman for the Home Affairs Branch said the amendments were aimed at bringing the law of divorce into line with community expectations and reducing the hardship, acrimony and distress that is often associated with divorce proceedings.

’’The amendments provide for a reduction in the current minimum separation periods that apply to divorce petition from two years to one year where both parties consent to the divorce and from five years to two years where one party does not consent.

3

"As regards the current time limit on divorce early in marriage, the amendments provide for this to be reduced from three years to one year," the spokesman added.

In addition, a new non-adversarial procedure of divorce by mutual consent is introduced based on either one year’s prior separation or a one year's period of notice, during which there would be no requirement for separation.

To provide for these changes, amendments have also been made to the Matrimonial Causes Rules, which govern court procedures relating to matrimonial proceedings. Amendments have also been made to the Matrimonial Causes (Fees) Rules to provide for the relevant fees.

The spokesman added that a bilingual leaflet had been published to introduce to the public the main contents of the amendments.

Copies of the leaflets will be available from next Monday at district offices, Family Services Centres, Legal Aid Offices, Divorce Registry, the Marketing Office of the Government Information Services, 17th floor, Siu On Centre, 176-192 Lockhart Road, Wan Chai, and other major contact points.

End

New performance pledge for Water Supplies Department ♦ ♦ * ♦ ♦

The Director of Water Supplies, Mr Hu Man-shiu, today (Friday) announced the Department's new performance pledge for 1996/97 and its achievements in 1995/96 against the performance targets announced last year.

The new pledge aims to improve the service the Department delivers to customers by enhancing openness and accountability and by developing a client-based culture within the Department.

The performance targets cover mainly the essential services provided by the Department in relation to daily water supply matters and water accounts.

In the past year, the Department had achieved very satisfactory results against the performance targets we announced, said Mr Hu.

4

"For the majority of the targets, the achievement rates are close to or have reached 100 per cent. For items which we have not yet achieved 100 per cent, we have made improvements over their respective 1994/95 results," he said.

Mr Hu also said that as part of its continuous efforts to provide a better service to customers, the Department introduced last year two new features to the Water Infolink for receiving requests for commonly used Waterworks Forms and reports of self-reading of the water meters.

"We have also started to publicise in advance our major planned water supply suspensions by placing advertisements in a number of leading newspapers on a weekly basis. By joining Internet, our customers can obtain information concerning our Department and its services and leave their comments on the Suggestion Box Page," he said.

Mr Hu pointed out that after reviewing the 1995/96 results and having heard the valuable suggestions of our customers channelled to the Department through various means, the Department had also decided to further enhance some of the performance targets with a view to further improving our service to customers.

"The Department is pledged to provide a reliable, efficient and customer-oriented service to its customers and will continue its best efforts within the available resources to achieve this goal," he stressed.

Copies of a booklet containing details of the Water Supplies Department's performance pledge can be obtained free-of-charge from all of its Customer Enquiry Centres and district offices.

End

Social relevance in education stressed *****

The Director of Education, Mrs Helen C P Lai Yu, stressed today (Friday) that science and technology education must be socially relevant.

Speaking at the opening ceremony of the Science and Technology Education Conference ’96, Mrs Yu said that the curricula for science and technology in Hong Kong are now moving towards greater relevance for students.

5

Citing examples, Mrs Yu noted that the Chemistry Syllabus at Secondary 4-5 level give due emphasis to social relevance with an inclusion of a study on chemicals and health.

The Science Syllabus at Secondary 1-3 level is also being revised. Elements of modem technology will be incorporated while societal issues like sex education will be strengthened.

She said, "The main drive behind this change is our determination to develop among our students an awareness of the social, economic, environmental and technological implications of science."

Education today faces a major challenge in helping the young to cope with the advances in science and technology, in developing the skills to live and work in the 21st century.

"Confining science education to the study of natural phenomena is no longer adequate or appropriate. Technology education now has to be more than a craft course for mere acquisition of technical skills," Mrs Yu said.

"Students should be guided to foster an ability to use concepts of science and technology to solve daily problems, to respond to day-to-day situations and to make responsible decisions in everyday life."

"They should also be able to recognise the strengths and limitations of science and technology for advancing human welfare."

The Science and Technology Education Conference ’96 provides an opportunity for science and technology teachers, teacher educators and curriculum developers to share and to take reference from one another’s experience.

The conference is jointly organised by the Faculty of Education and Department of Curriculum Studies of the Hong Kong University, the Hong Kong Association for Science and Mathematics Education and the Curriculum Development Institute of the Education Department.

End

6

Privacy Commissioner for Personal Data appointed *****

The Governor has appointed Mr Stephen Lau Ka-men as the Privacy Commissioner for Personal Data for a term of five years commencing August 1, 1996, a Government spokesman announced today (Friday).

The Privacy Commissioner is responsible for enforcing and promoting compliance with the Personal Data (Privacy) Ordinance, which provides for the protection of individuals' privacy with respect to personal data.

Mr Lau is currently the Managing Director of the Hong Kong and Macau Operations of Electronic Data Systems, the world's largest provider of information technology services.

For the past 28 years, he has served in both the public and private sectors in the information technology field.

In the public sector, Mr Lau rose to the highest echelon of his profession and became the first head of the Government Data Processing Agency in 1978, which was the forerunner of the current Information Technology Services Department.

He was also a prime mover in raising the issue of data protection within Government in the early 1980's and he served on the Government Working Group on Data Protection Legislation from 1983 to 1986.

"Mr Lau will bring to the appointment strong information technology expertise, a high level of public and private sector management experience and in-depth knowledge of personal data privacy issues," the spokesman said.

"The combination of these qualities means that Mr Lau is exceptionally well suited to this position. We are very pleased to have secured his services," he added.

End

7

Senior appointments at Hong Kong Monetary Authority ♦ * ♦ ♦ ♦

The Hong Kong Monetary Authority (HKMA) announced today (Friday) that the Financial Secretary has approved the appointment of Mr Peter Pang Sing-tong as Executive Director (Monetary Policy & Markets), and Mr Raymond Li Ling-cheung as Executive Director (Banking Policy), of the Authority.

The Executive Director (Monetary Policy & Markets) post is vacant following Mr Norman Chan’s appointment as Deputy Chief Executive in June. Mr Peter Pang Sing-tong will fill the post with effect from July 22, 1996. In his new posting, Mr Pang will be responsible for monetary management, market infrastructure including the implementation of a new interbank clearing system and the promotion of the debt market.

Mr Pang joined the Government in 1979. He has since held various senior posts including Assistant Commissioner of Banking and Assistant Director of Trade. In June 1994, he joined the HKMA as Executive Director (Banking Policy). Mr Pang was instrumental in the formulation of financial disclosure packages and derivatives guidelines for authorised institutions and the introduction of amendments to the Banking Ordinance.

Mr Li will succeed Mr Pang as Executive Director (Banking Policy) with effect from July 8, 1996. He will be responsible for the development of banking supervisory and industry related policies and the legal framework laid down in the Banking Ordinance to meet evolving supervisory needs.

Mr Li joined the Government in 1982. He joined the former Monetary Affairs Branch in January 1987 as Assistant Secretary and became Principal Assistant Secretary in 1990. Mr Li became Head of Banking Development shortly after the HKMA was set up in 1993. He took up his current post of Head (Administration) in 1995.

End

8

Education Commission member appointed

*****

The Government announced today (Friday) the appointment of Mr Michael Tien Pak-sun as a member of the Education Commission for a period of one and a half years with effect from July 1.

Mr Tien is the Managing Director of G2000 (Apparel) Ltd. He has served on the Advisory Committee on Teacher Education and Qualifications (ACTEQ) since 1993 and the Language Fund Advisory Committee since 1994. He is currently chairing the ACTEQ’s sub-group on Professional Relevance.

Chaired by Professor Rosie Young, the Education Commission advises the government on the development of the education system, as a whole, in the light of community needs.

Other members include Mr Cheung Man-kwong, Professor Cheng Kai-ming, Mr Moses Cheng Mo-chi, Ms Sansan Ching Teh-chi, Mr Irving Koo, Mr Peter Lee Ting-chang, Mr Andrew Leung Kwan-yuen, Mr Mak Kwai-po, Mr Tai Hay-lap, Mr Benjamin Wong Pui-tong and the Rev Margaret Wong.

Ex-officio members of the Commission include the Chairman of the ACTEQ, the Board of Education, the University Grants Committee and the Vocational Training Council, and the Director of Education. The Secretary for Education and Manpower is the vice-chairman of the Commission.

End

Gasholders Regulation

*****

The Gas Safety (Gasholders Examination) Regulation published in the Government Gazette today (Friday), consolidates in one piece of legislation existing statutory provisions relating to the examination, safety, construction and operation of gasholders.

These provisions are currently divided between the Gas Safety Ordinance and the Gasholders Examination Ordinance. The Regulation will repeal and replace the Gasholders Examination Ordinance.

9

The Regulation provides for external and internal examination of gasholders at specified intervals and for the reporting of defects and remedial work to the Gas Authority (the Director of Electrical and Mechanical Services).

The Regulation will be tabled in the Legislative Council on June 26, 1996.

End

122 VMs depart on orderly repatriation flight * ♦ ♦ ♦ ♦

A group of 122 Vietnamese migrants (VMs) returned by air to Hanoi, Vietnam, today (Friday) on the 43rd flight under the Orderly Repatriation Programme (ORP).

Most of the returnees, comprising 53 men, 34 women, 16 boys and 19 girls, are from North Vietnam.

The majority of them arrived in Hong Kong in 1989, with the remaining in 1988, 1990 and 1991.

The group brought the total number repatriated on ORP flights since November 1991 to 3,760.

End

Monitors' Report submitted to CS

*****

The monitors appointed to observe the Orderly Repatriation Programme operation this (Friday) morning have submitted their report to the Chief Secretary.

The two monitors comprised a non-official Justice of the Peace, Mr Peter Lee Shung-tak; and a representative from a non-governmental organisation, Miss Ho Tak-yin from Oxfam.

End

10

Livestock waste control areas expanded *****

Control of livestock waste will be further extended to some areas in the New Territories with effect from July 1.

Affected areas include the corridor between Tuen Mun and Yuen Long, part of Yuen Long area and Kam Tin River.

"Starting July, treated wastewater from livestock farms in these areas must comply with the discharge standards, initially at 250 mg/L : 250 mg/L (biochemical oxygen demand : suspended solids), later to 100 : 100 and finally to the 50 : 50 standards, in three years' time," Principal Environmental Protection Officer of the Environmental Protection Department (EPD), Dr Ellen Chan, said.

For farms already under livestock waste control on July 1, 1995 or earlier, they would have to meet the agreed discharge standards of 100 : 100 starting July 1 this year.

Letters advising farmers on the tightening of discharge standards have been sent to all affected farms.

"The three-year phased programme in meeting discharge standards is to give livestock farmers sufficient time to adjust to the use of waste treatment facilities," Dr Chan said.

"And to facilitate the implementation of the livestock waste control scheme, an improved waste collection service will be provided, starting also on July 1.

"Livestock farms requiring the service may contact the contractor. Waylung Waste Collection Ltd, direct on 2653 0146," Dr Chan said.

Leaflets on the waste collection service will be available at district offices. Enquiries on livestock waste control can be made to EPD's Local Control Offices.

End

11

Improved waste charging arrangements proposed * ♦ * ♦ ♦

A Bill which seeks to facilitate the implementation of charging schemes for waste disposal is gazetted today (Friday).

A Government spokesman said the Waste Disposal (Amendment) Bill sought to provide for account billing arrangements to enable users of waste disposal facilities to pay in arrears.

’’This will address some users' concern as it would help ease their cashflow position.”

It also seeks to empower the Director of Environmental Protection to delegate to waste disposal facility operators the charge collection service and the necessary enforcement powers.

"The Bill will not pose additional financial burden on waste producers but will facilitate the implementation of charging schemes and application of the polluter pays principle."

The Bill will be introduced into the Legislative Council on July 3.

End

Public invited to enrol as 'Friends of Red Ribbon Centre' ♦ ♦ ♦ ♦ ♦

A Promotion Day to recruit "Friends of the Red Ribbon Centre" was held by the Department of Health today (Friday) to publicise the services of the new centre and to encourage the public to use its facilities when it is open.

The Red Ribbon Centre is a new project developed by the Department of Health under the sponsorship of the AIDS Trust Fund.

Speaking at the opening ceremony of the Promotion Day, the Assistant Director of Health, Dr Chan Wai-man, said that "Red Ribbon" is the international symbol for concern about HIV/AIDS and people living with the disease.

"The main objectives of the Centre are to promote community participation in AIDS education and research; and to facilitate the development of social, behavioural and epidemiological research on HIV/AIDS in Hong Kong and the region.

12

"It also aims to enhance the development of quality education programmes; and to provide an avenue for local and international collaboration in the fight against HIV/AIDS," she said.

The Red Ribbon Centre will have an information centre, an exhibition area, a library and a resource unit which provides support to small non-governmental organisations working on AIDS.

Audio-visual and desktop publishing facilities will also be available. No treatment facilities, however, will be provided in the Centre.

Dr Chan said that members of the public could have access to these facilities by simply enrolling as 'Friends of the Red Ribbon Centre'.

"AIDS has far-reaching impacts on the society and is a cause of concern for everyone. I urge all Hong Kong residents to enrol as 'Friends of the Red Ribbon Centre' so as to learn more about the disease and to render care and assistance to those who are affected by it," she added.

All Hong Kong residents aged 11 or above can submit their applications to the AIDS Unit of the Department of Health by mail or in person. Application is free of charge.

Friends of the Red Ribbon Centre can make use of the facilities provided by the library, receive newsletters published by the Centre regularly, obtain copies of certain publications free of charge, and participate in the promotion of educational activities organised by the Centre.

The Centre is located on the second floor of Wang Tau Hom Jockey Club Clinic, 200 Junction Road, Kowloon and will become operational in the third quarter of this year.

The AIDS Unit of the Department of Health has already organised two exhibitions to publicise the setting up of the Centre. Another exhibition will be held from 9 am to 6 pm between June 26 and 28 at Wo Che Shopping Centre in Sha Tin.

General information on AIDS, ways of transmission and other educational materials will be displayed in the exhibition.

Members of the public are welcome to visit the exhibition. Admission is free.

End

13

Value of manufacturers’ orders-on-hand in April ♦ ♦ ♦ ♦ ♦

The value of manufacturers' orders-on-hand for local production in April 1996 decreased by 5% over a year earlier, according to the provisional results of a monthly survey released today (Friday) by the Census and Statistics Department.

Comparing-April 1996 with April 1995, a significant increase in the value of orders was registered in the fabricated metal products industry (+34%).

On the other hand, decreases in the value of orders were recorded in the plastic products industry (-12%), the textiles industry (-12%), the printing and publishing industry (-9%), the electronic products industry (-5%), the wearing apparel industry (-4%) and the electrical products industry (-1%).

Compared with March 1996, and bearing in mind this comparison may be affected by seasonal factors, the value of manufacturers' orders-on-hand in April 1996 increased by 1%.

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 which 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 of the department said caution should be exercised in interpreting the manufacturers' orders-on-hand figures in a single month. The trend movement of the series as displayed over a wider span of time points should be looked at.

The survey report for April 1996 is now on sale at $7 a copy at the Government Publications Centre, Queensway Government Offices, Low Block, ground floor, Queensway, and at the Census and Statistics Department Publications Unit, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai.

Enquiries about the survey results may be made to the Industrial Production Statistics Section of the department on 2805 6441.

14

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

March 1996 over March 19g5. (Revised) . April 1996 over April 1995 (Provisional)

All industries covered in the survey - 3 - 5

* Wearing apparel -■ 4 - 4

* Textiles - 9 f -12

* Electronic products - 1 - 5

* Electrical products + 3 - 1

* Fabricated metal products +11 +34

* Plastic products - 10 -12

* Printing and publishing - 2 - 9

End

Survey of transport and related services results released ♦ * ♦ ♦ ♦ •

The business receipts and other income, that is, total receipts, generated by transport establishments in 1994 amounted to $210 billion, representing an increase of 9% over 1993.

Net of operating expenses and compensation of employees, the gross surplus accounted for 14.6% of the total receipts. This was 0.7 percentage point higher than the figure for 1993.

15

The value added, which is a measure of the sector's contribution to Hong Kong’s gross domestic product, grew by 16%, from $53 billion in 1993 to $62 billion in 1994.

These are some of the major findings of the 1994 Survey of Transport and Related Services, conducted from May last year to early this year, released today (Friday) by the Census and Statistics Department.

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

The operating expenses incurred by transport establishments in 1994 accounted for 70.9% of the total receipts. Compared with 1993, this decreased by 1.4 percentage points.

The compensation of employees accounted for 14.5% of the total receipts. This was 0.8 percentage point higher than the 1993 level.

The survey results showed that some 42,000 transport establishments were in operation in 1994, a slight increase of 1% over 1993.

Within the transport sector, air transport accounted for the largest share of value added in 1994, accounting for 24% of the sector's total.

This was followed by land passenger transport (22%), ocean and coastal water transport (18%), services incidental to transport (13%) and land freight transport (12%). Inland water transport and supporting services to water transport and land transport accounted for the remaining 11%.

Compared with 1993, the share of total value added attributable to air transport rose by 2.1 percentage points in 1994, representing a percentage increase of 10%. This was in line with the steady growth in air passenger and cargo throughput.

The share of supporting services to land transport increased by 0.2 percentage point over 1993. This was largely contributed by the thriving business of car parks and vehicular tunnels.

The share of land passenger transport went up by 0.4 percentage point over 1993, representing a percentage increase of 1.7%. This was due to the continued growth in the business of various public transport services.

16

On the other hand, the shares of land freight transport, supporting services to water transport and ocean and coastal water transport decreased by 1.5, 0.7 and 0.3 percentage point respectively.

Over the same period, inland water transport and services incidental to transport remained relatively stable.

The attached table compares some selected principal statistics by major transport group for 1993 and 1994.

More detailed results together with the background and methodology of the survey will be given in a full survey report to be published around August.

It will be on sale in August at the Government Publications Centre of the Information Services Department, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong; and the Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

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

End

COMPARISON OF SELECTED PRINCIPAL STATISTICS FOR ALL ESTABLISHMENTS IN THE TRANSPORT AND RELATED SERVICES SECTOR BETWEEN 1993 AND 1994

MAJOR INDUSTRY GROUP NUMBER OF ESTABLISH- MENTS NUMBER OF PERSONS ENGAGED NUMBER OF EMPLOYEES COMPENSA- TION OF EMPLOYEES OPERATING EXPENSES BUSINESS RECEIPTS AND OTHER INCOME GROSS ADDITIONS TO FIXED ASSETS VALUE ADDED GROSS SURPLUS

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

LAND PASSENGER 1994 19 446 52 587 33 600 5,479 8,246 20,125 2,200 13,711 6,400

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

% change ♦7 ♦ 3 ♦ 6 ♦ 16 +7 ♦ 12 -44 + 18 ♦ 15

LAND FREIGHT 1994 14 453 43 057 26 886 3,277 7,861 14,314 934 7,126 3,176

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

% change -3 -6 -10 -4 -4 * + 4 + 3 ♦20

SUPPORTING 1994 136 5 078 5 027 550 2,329 3,746 88 1,601 868

SERVICES TO LAND 1993 139 3 836 3 793 438 1,762 2,877 79 1,270 678

TRANSPORT % change -2 ♦ 32 ♦ 33 +25 ♦ 32 +30 +11 +26 ♦ 28

OCEAN AND 1994 504 18 213 18 209 4,422 12,244 22,746 4,101 11,092 6,079

COASTAL WATER 1993 517 17 643 17 625 3,618 9,809 19,297 2,825 9,731 5,870

TRANSPORT % change -3 ♦ 3 ♦3 ♦ 22 +25 + 18 +45 + 14 ♦ 4

INLAND WATER 1994 931 7 455 6 766 939 2,242 4,110 599 1, 844 928

TRANSPORT 1993 944 7 105 6 446 829 2,295 4,017 529 1,577 894

% change -1 ♦ 5 ♦ 5 ♦ 13 -2 ♦2 ♦ 13 ♦ 17 ♦ 4

SUPPORTING 1994 2 662 13 725 11 263 1,778 6,203 9,243 977 3,448 1,261

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

WATER TRANSPORT % change -3 -1 * ♦ 4 -1 ♦ 1 ♦53 ♦3 +6

AIR TRANSPORT 1994 63 23 4 36 23 436 8,327 18,920 36,456 2,836 14,900 9, 210

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

% change A ♦ 5 <5 ♦26 * ♦ 10 -32 ♦ 27 ♦ 20

SERVICES 1994 3 766 40 278 39 038 5,692 90,608 98,980 1,053 8,087 2,680

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

TRANSPORT % change -9 * -1 + 14 + 8 +9 +26 + 14 +23

ALL TRANSPORT 1994 41 962 203 829 164 225 30,466 148,653 209,720 12,789 61,809 30,602

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

% change ♦ 1 ♦ 1 ♦ 1 + 16 ♦ 7 + 9 -8 ♦ 16 ♦ 15

GOVERNMENT 1994 2 984 984 410 627 3,592 225 2,967 N.A.

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

% change * * ♦ 9 + 16 ♦ 14 -48 ♦ 14 (-)

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

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

(3) Value added is a measure of the contribution of an economic sector to Hong Kong's Gross Domestic Product. The definition can be found in the "Report on 1994 Survey of Transport and Related Services".

(4) * denotes % change less than ±0.5%

18

Resource material on PADS to be transferred to UC library *****

The entire collection of resource material in the Airport and Port Projects Resource Centre (APPRC) in Causeway Bay will be transferred to the Urban Council’s Reference Library in the City Hall with effect from next Monday (June 24).

Starting on July 1, the resource material will be available to the public in the Reference Library instead of the Resource Centre presently located in the East Exchange Tower at Leighton Road.

The resource centre was set up by the New Airport Projects Co-ordination Office (NAPCO) in 1991 in the French Mission Building in Central for the public to know more about the airport and port development projects. It was later relocated to its present premises.

The centre has a collection of 1,060 volumes in 584 titles, with the majority being technical and planning papers, including consultancy reports, reports on feasibility studies and other research papers commissioned by various government departments for the Port and Airport Development Strategy (PADS) study and projects.

The relocation of the resource materials to the Urban Council’s Reference Library will enable the public to continue having access to the information on PADS.

The Reference Library is located on the tenth floor of the City Hall High Block in Central. The library is open throughout the week, and is closed on Sunday afternoons and on public holidays.

’’Compared with the resource centre’s present location, the reference Library is much more convenient to those seeking resource material about the PADS," said a spokesman for NAPCO.

Enquiries can be made to NAPCO’s Community Relations Division on 2829 6282.

End

19

Feature article on findings of household expenditure survey ♦ ♦ ♦ ♦ ♦

A feature article entitled ’’Results of the 1994/95 Household Expenditure Survey and the Rebasing of the Consumer Price Indices” is published in the June 1996 issue of the Hong Kong Monthly Digest of Statistics.

The 1994/95 Household Expenditure Survey (HES) was conducted from October 1994 to September 1995 to collect up-to-date information on expenditure patterns of households in Hong Kong. The information collected is used in updating the expenditure weights which are essential inputs to the compilation of the Consumer Price Indices (CPIs).

Based on the results of the survey, the weighting patterns of the CPIs were updated. Over the five-year period, from 1989/90 to 1994/95, the most significant changes in the expenditure weights of the CPIs have been a decline in the expenditure share of food (by 4 to 6 percentage points) and an increase in that of housing (by 4 to 5 percentage points).

The new expenditure patterns derived from the results of the 1994/95 HES are used in compiling the new 1994/95-based CPIs.

More details on the results of the 1994/95 HES and the new CPI series are given in the feature article.

The June 1996 issue of the Hong Kong Monthly Digest of Statistics is now on sale at $50 a copy. It contains most up-to-date information on Hong Kong's situation regarding economic growth, the labour market, inflation and many other social and economic issues.

Purchases of this publication can be made at the Government Publications Centre, ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong. The publication is also available for sale at the Publications Unit of the Census & Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong. Regular subscription can also be arranged with the Publications (Sales) Office of the Information Services Department on 2598 8194.

End

20

Grading of beach water quality

*****

The Environmental Protection Department (EPD) today (Friday) announced the latest gradings of Hong Kong's beaches, based on the bacteriological water quality, for the 1996 swimming season.

The purpose of the grading system is to inform swimmers and the general public about the state of bacteriological pollution at various beaches.

The grading will be announced biweekly during the bathing season to coincide with the frequency at which beach waters are usually sampled.

The grading is based on the most recent E. coli data obtained by EPD in its routine monitoring programme.

As with last year, the grading also includes an estimate of the risk of suffering some minor skin or gastrointestinal complaints as a result of swimming at a beach which has some degree of pollution.

The estimate is based on a large body of statistical information gathered in Hong Kong in recent bathing seasons.

The grading of some beaches may vary during the summer. This represents a natural fluctuation in the bacteriological quality of bathing waters in most cases, as rain and tides bring more or less pollution to the beaches.

However, the grades give a good general picture of the water quality at bathing beaches at the time of reporting and form the best available forecast for the immediate future.

Beaches with highly developed hinterlands are likely to be more polluted than the grades suggested during and after heavy rain.

"Bathers should avoid such beaches for two or three days after a storm, longer if the weather remains overcast or less if there is strong sunshine", Principal Environmental Protection Officer, Mr Patrick Lei said.

The system for grading beach water quality is as follows:

Grade "1" indicates that the water quality is good. The E. coli count is no more than 24 per 100 millilitres at each beach so graded, and the expected risk of minor illness to swimmers is undetectable.

21

Grade "2" indicates that the water quality is fair. The E. coli count is no more than 180 per 100 millilitres at each beach so graded, and the expected health risk is no more than 10 cases of minor illness per 1,000 swimmers.

Grade "3" indicates that the water quality is poor. The E. coli count is no more than 610 per 100 millilitres at each beach so graded, and the expected health risk is no more than 15 cases of minor illness per 1,000 swimmers.

Grade "4" indicates that the water quality is very poor. The E. coli count is more than 610 per 100 millilitres at each beach so graded, and the expected health risk is more than 15 cases of minor illness per 1,000 swimmers.

The decision whether or not to close a beach to swimmers is based on a judgement of what degree of pollution is acceptable.

Normally, the closure of a beach would only be considered by the Urban or Regional Council if a grade "4" occurred repeatedly, so that the average health risk over the bathing season exceeded 15 cases per 1,000 swimmers.

At present five gazetted beaches, namely Anglers', Approach, Castle Peak, Rocky Bay and Ting Kau, are closed to swimmers, while Old Cafeteria is re-opened. The decision to open or close the beaches has been made by the Regional and Urban Councils on the basis of beach water quality monitoring data for 1995. The public are advised not to swim at the closed beaches. They are identified by an "X" in the following list.

The grades of the bacteriological water quality of various beaches in Hong

Kong today are listed below:

Beach Previous Grading (as at 6.6.96) Present Grading (as at 20.6.96)

Hong Kong South

Big Wave Bay (S) 3 3

Chung Hom Kok (S) 1 1

Deep Water Bay (S) 1 1

Hairpin (S) 2 2

Middle Bay (S) 1 2

Repulse Bay (S) 1 1

Shek O (S) 2 2

South Bay (S) 1 1

St. Stephen’s (S) 2 3

Turtle Cove (S) 1 1

Stanley Main (S) 2 2

Rocky Bay X X

22

Tucn Mun District

Golden Beach 3

Old Cafeteria 3

New Cafeteria 3

Castle Peak X

Kadoorie (S) 3

Butterfly (S) 3

Sai Kung District

Clear Water Bay 1st Beach (S) 2

Clear Water Bay 2nd Beach (S) 2

Ha Mun Bay (S) 1

Kiu Tsui (S) 1

Silverstrand (S) 3

Trio (Hebe Haven) (S) 2

Islands District

Cheung Sha Upper 1

Cheung Sha Lower 3

Discovery Bay* 2

Hung Shing Yeh 1

Kwun Yam Wan 2

Tong Fuk 1

Lo So Shing 1

PuiO 1

Silvermine Bay 2

Tung Wan, Cheung Chau (S) 2

Tsuen Wan District

Anglers’ X X

Approach X X

Casam (S) 4 3

Gemini 4 4

Hoi Mei Wan 3 3

Lido (S) 3 3

Ting Kau X X

Tung Wan, Ma Wan 2 2

Note: ”X” The beach has been closed for swimming purposes.

* Non-gazetted beaches.

(S) The beach has a shark-prevention net installed.

23

The following beaches have changed grading on this occasion:

Tung Wan, Cheung Chau from ”2" to ”1”; Silverstrand, Golden Beach and New Cafeteria from ”3" to ”2”; Casam from "4” to ’’3”; Middle Bay from ”1" to "2" and St. Stephen's from "2" to "3".

The changes are within the normal range of fluctuation of the bacteriological water quality of these beaches.

End

Unlicensed guesthouse operator fined ♦ ♦ ♦ ♦ ♦

Guesthouse operators were reminded today (Friday) that they must operate their establishments only after having obtained a licence from the Home Affairs Department (HAD) or risk facing a maximum penalty of $200,000 in fines and two years' imprisonment.

An HAD spokesman issued the warning after a guesthouse operator pleaded guilty to operating an unlicensed guesthouse in Kowloon Tong and was fined $13,000 in San Po Kong Magistracy.

In an operation, officers of HAD's Licensing Authority inspected the premises on first floor, 21-23 Cumberland Road and found that it was being operated as a guesthouse without a licence, contrary to Section 5 of the Hotel and Guesthouse Accommodation Ordinance.

The spokesman said unlicensed guesthouses would not be tolerated and enforcement action would continue to be taken.

He appealed to members of the public to continue to help in the crackdown on unlicensed guesthouses by reporting them to the Licensing Authority on 2881 7034.

End

24

Fresh water cut in Central ♦ ♦ ♦ ♦ ♦

Fresh water supply to some premises in Central will be temporarily suspended from 11 pm on Monday (June 24) to 6 am the following day to facilitate waste detection work on watermains.

The suspension will affect: -

* All even number premises between 2-48 and odd number premises between 5-23 and 47-151 Caine Road;

* All odd number premises between IB-19 and 51-55 Elgin Street;

* All even number premises between 68-74A Hollywood Road;

* All even number premises between 36-90 and odd number premises between 45-67 Staunton Street;

Bridges Street;

* Coronation Terrace;

* Po Wa Street;

Wa In Fong East;

* Wa In Fong West;

* Wing Lee Street;

* Ladder Street Terrace;

* U Lam Terrace;

* All odd number premises between 5A-13 Arbuthnot Road;

* All even number premises between 62-76 and all odd number premises between 63-71A Peel Street;

* All even number premises between 20-44 and all odd number premises between 35-57 Aberdeen Street;

* Chung Wo Lane;

25

All even number premises between 2-14 and all odd number premises between 17-19 Shing Wong Street;

Ping On Lane; and

Kui In Fong.

End

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

Time Cumulative change

s million (hours) (Smillion)

Opening balance in the account 1,950 0930 + 8

Closing balance in the account 1,814 1000 + 8

Change attributable to: 1100 + 8

Money market activity -6 1200 +11

LAF today -130 1500 +11

1600 - 6

LAF rate 4.00% bid/6.00% offer TWI 124.3 *+0.2* 21.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 4.95 2 years 2805 6.30 99.89 6.46

1 month 5.04 3 years 3904 6.30 98.87 6.85

3 months 5.22 5 years 5106 7.23 99.41 7.51

6 months 5.46 7 years 7305 7.60 99.51 7.84

12 months 5.84 5 years M502 7.30 99.06 7.70

Total turnover of EF bills and notes - $12,971 million

Closed June 21, 1996

End

DAILY INFORMATION BULLETIN

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

Saturday, June 22,1996

Contents Page No.

Drug abuse telephone enquiry service boosted............................. 1

Planning Department sets higher performance targets...................... 2

Health competition for 18 District Boards................................ 3

Firing practice in July.................................................. 4

Hong Kong Monetary Authority money market operations..................... 5

Sunday, June 23,1996

Contents Page No-

Trading fund provides department with greater transparency............... 5

Welfare recipients urged to watch for tricksters.....................

Fresh water cut in Mong Kok.............................................. 8

Fresh and flushing water cut in Yuen Long................................ 8

1

Drug abuse telephone enquiry service boosted ♦ ♦ ♦ ♦ ♦

The drug abuse telephone enquiry service has been enhanced with the expansion of information provided to the public.

The new Anti-drug Abuse line 23668822 was officially launched today (Saturday) at the opening ceremony of the International Anti-drug Day Exhibition at the Times Square in Causeway Bay.

Speaking at.the ceremony, Executive Councillor, Ms Rosanna Wong, said the expansion of the enquiry service would benefit more members of the public.

She said: "The service has been strengthened with the provision of additional information including guide to parents, teachers and social workers, refusal skills and healthy lifestyle.’’

The drug abuse telephone enquiry hotline was first set up in 1977 and was automated in 1993 to provide pre-recorded information on 12 substances of abuse.

In order to enhance the service to the public, the Narcotics Division decided to expand the scope of the messages by including information on preventive education, treatment and rehabilitation services, law enforcement in the voice messaging system. The new system also provides facsimile service for users to obtain information such as resources available in Narcotics Division.

Ms Wong noted recent statistics indicated that the problems of drug abuse remained a cause of concern.

"The upward trend in youth drug abuse, female drug abuse and multiple drug abuse was worrying,”

"According the statistics of the Central Registry of Drug Abuse, the number of newly reported drug abusers under 21 reaches an average of 2,000 in the past few years. It shows that we cannot spare efforts in the war on drugs."

Ms Wong stressed the importance of community joint effort in disseminating the anti-drug message.

She said: "Only with the support from all sectors of the community can we deliver the message clear and loud, in particular to our youngsters.

2

Also officiating at the ceremony were Chairman of the Action Committee Against Narcotics (ACAN) Professor Chen Char-nie and Commissioner for Narcotics Raymond Wong.

The two-day event, organised by ACAN this Saturday and Sunday (June 22 -23), features display panels, games stalls, drug exhibits and video displays.

The event was held annually to mark the International Day Against Drug Abuse and Illicit Trafficking declared by the United Nations General Assembly.

End

Planning Department sets higher performance targets ♦ ♦ ♦ ♦ *

The Planning Department announced today (Saturday) a higher level of performance targets for 1996.

’’The department has raised the performance targets from 85 per cent for 1994 and 1995 to 90 per cent of the cases in such areas as replying to straightforward oral enquiries on the spot, complicated oral enquiries within three days, carrying out site inspections and providing replies on alleged unauthorised developments within four weeks as well as processing development proposals and replying within three months,” a spokesman for the department said.

He pointed out that the department handled a total of 11 653 oral and 870 written enquiries last year.

"It managed to exceed the target set for 1995 for most of the services and achieved the performance targets in 90 per cent of the cases. This level of achievement has provided a basis to raise its service standards for 1996.

"We pledge to continue providing efficient, courteous and professional services to the public," he added.

Meanwhile, the department has come under the Code on Access to Information since October 1995 and received a total of 49 applications for access to information under the Code in 1995.

3

Photocopying service of information has been provided and is well received by members of the public.

Copies of the Planning Department's leaflet on the performance pledge for 1996 are available from the department's Planning Information and Technical Administration Unit on the 16th floor of Murray Building at Garden Road, District Planning Offices and District Offices.

End

Health competition for 18 District Boards * * ♦ ♦ ♦

District Board members should live a balanced life in order to set a good example for their constituents, Mrs Shelley Lau, Director of Home Affairs, said at the first ever health competition for the 18 District Boards today (Saturday) at the Harbour Road Indoor Games Hall.

Referring to the results of the questionnaire survey conducted as a prelude to the competition, Mrs Lau expressed appreciation for the devotion of the DB members to serve the community. She noted that some might even be prepared to skip dinner and sacrifice rest.

"I hope District Board members will take the opportunity today to relax and will help with health promotion," she added.

The competition, jointly organised by the Home Affairs Department, Hospital Authority and Department of Health with the assistance of Radio Television Hong Kong, included a number of entertaining games to test the DB members' fitness.

Also speaking at the opening ceremony, the Chief Executive of the Hospital Authority, Dr E K Yeoh, praised the dedication of the DB members: "They have great determination in serving the community and enhancing the well-being of residents."

However, Dr Yeoh called on the DB members to pay more attention to their health. He pointed out that to stay healthy, regular exercise, a balanced diet and sufficient rest were essential.

The Director of Health. Dr Margaret Chan, noted that DB members faced a heavy responsibility of advising on district administration issues.

4

"I hope after today's programmes, DB members will be more health-conscious in their daily activities, relax and exercise more," she said.

More than 200 DB members participated in today's competition. Over 300 guests from the 18 districts and Miss Hong Kong 1996, Miss Lee San-san, attended the event.

There were performances by popular local artistes Mr Hacken Lee, Miss Amanda Lee, Mr Edmond Leung, Miss Christine Ng and Mr Ray Chan. The competition was broadcast live on Radio 1 Hong Kong.

End

Firing practice in July *****

Firing practice will take place at the Ha Tsuen/Castle Peak Range on 14 days next month. The public is advised not to enter the area when red flags are hoisted.

Following are the dates and times for the firing practice:

Date

Time

July 2 (Tuesday) 8.30 am - 5 pm

July 3 (Wednesday) 8.30 am - 5 pm

July 4 (Thursday) 8.30 am - 5 pm

July 5 (Friday) 8.30 am - 5 pm

July 11 (Thursday) 8 30 am - 5 pm

July 18 (Thursday) 8.30 am - 5 pm

July 22 (Monday) 8.30 am - 5 pm

July 23 (Tuesday) 8.30 am - 5 pm

July 24 (Wednesday) 8.30 am - 5 pm

July 25 (Thursday) 8.30 am - 5 pm

July 26 (Friday) 8.30 am - 5 pm

July 29 (Monday) 8.30 am - 5 pm

July 30 (Tuesday) 8.30 am - 5 pm

July 31 (Wednesday) 8.30 am - 5 pm

End

5

Hong Kong Monetary Authority money market operations Mt**

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

Opening Balance in the account 1,814 09:30 +130

Closing Balance in the account 1,714 10:00 +130

Change Attributable to: 11:00 + 130

Money Market Activity +130 11:30 + 130

LafToday -230

Laf Rate 4% Bid/6% Offer TWI 124.50 *+0.2* 22.6.96

End

Trading fund provides department with greater transparency * ♦ ♦ * *

The Secretary for Works. Mr Kwong Hon-sang, today (Sunday) said that the administration has identified the Electrical and Mechanical Services Department (EMSD) as a good candidate for transforming into a trading fund through which customers will benefit from better services and more competitive prices.

Staff in the department will also benefit from working and developing their careers in a healthy, dynamic organisation which is able to move forward and adapt itself to meet its clients' changing needs.

"The introduction of the Electrical and Mechanical Services Trading Fund (EMSTF) will serve to enhance the efficiency and productivity of the EMSD in delivering its services for the best interests of the community as a whole," Mr Kwong said.

"As taxpayers, the public will benefit from the better value for money and quality of services provided by the EMSTF at less cost to them."

- 6 -

In response to comments on the viability of trading funds, Mr Kwong said that the audited accounts of the Companies Registry and Land Registry, which have been operating under trading funds since 1993, clearly showed that both were financially viable and were generating healthy operating surpluses as intended.

The Post Office and the Office of the Telecommunications Authority have yet to submit their first accounts as trading funds, but their draft unaudited accounts show that both are operating successfully as planned.

"Upon the establishment of the EMSTF, detailed accounts of the Fund are required to be tabled in the Legislative Council annually for the scrutiny of Councillors," Mr Kwong said. "This makes the operation of the Department much more transparent and accountable."

On the question of staff relations, the Director of Electrical and Mechanical Services is confident that the setting up of the EMSTF will not result in staff redundancies as new business opportunities arise in the coming years. Nevertheless, to address their worries, he has reassured staff that the Department will make full use of redeployment, retraining and natural wastage to deal with any staffing issues if they arise.

The Director has also assured them that provided all staff are willing to participate in meeting the challenges of the Department's business developments in future, no existing staff would be made redundant or forced to retire early.

Mr Kwong said that there have been extensive briefings and consultations with staff and over 500 of them have already received special training in commercial practices to prepare them for the establishment of the trading fund, in addition to the many improvement initiatives which are already under way.

"We understand that staff are concerned about job security. However, it is also our duty to strive to make continuous improvement in the services which ,we provide in the interests of the public," he added.

The Administration will table a Resolution to establish the EMSTF on June 26. 1996 to the Legislative Council for it to be set up from August 1, 1996.

End

7

Welfare recipients urged to watch for tricksters

*****

The Social Welfare Department (SWD) today (Sunday) urged recipients of welfare assistance, elderly people in particular, to watch out for tricksters.

A spokesman for the department said that no money would be demanded from SWD staff in the process of applying for Comprehensive Social Security Assistance (CSSA) and Social Security Allowance (SSA).

"It has been found that elderly people receiving CSSA and SSA could easily fall prey to tricksters who claimed to be officers of the SWD or volunteers.

"These unruly elements usually gained access into the premises of the elderly victims and then cheated/robbed them of the money," he said.

The spokesman said that the services in processing CSSA and SSA applications were entirely free of charge and any demand for money should be brought to the attention of the SWD or the Police for follow-up investigations.

"We urge members of the public, including CSSA and SSA recipients, to be on guard against tricksters.

"They arc advised to check the departmental identity cards of visitors who claimed to be SWD staff." he said.

In ease of doubt, members of the public can call the nearest social security field units or the SWD hotline 2343 2255.

To arouse public awareness, posters advising welfare recipients to beware of tricksters have been put up at SWD's 33 social security field units throughout the territory.

End

8

Fresh water cut in Mong Kok * ♦ ♦ ♦ ♦

Fresh water supply to some premises in Mong Kok will be temporarily suspended from 11 pm on Wednesday (June 26) to 6 am the following day to facilitate waste detection works on watermains.

The suspension will affect all premises bounded by Soy Street, Nathan Road, Dundas Street and Fa Yuen Street, as well as premises at Nos 546 to 580 Nathan Road.

End

Fresh and flushing water cut in Yuen Long *****

Fresh and flushing water supply to some premises in Yuen Long will be temporarily suspended from 11 pm on Wednesday (June 26) to 6 am the following day to facilitate waste detection work on watermains.

The suspension will affect all premises in Sheung Cheung Wai, Hang Tau Tsuen, Hang Mei Tsuen, Tong Fong Tsuen and Ping Shan San Tsuen.

End

DAILY INFORMATION BULLETIN

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

Monday, June 24, 1996

Contents Page No,

Transcript of the Governor's media session.............................. 1

Government statement on WCR............................................. 3

Food hygiene campaign launched.......................................... 4

Consumer price indices for May.......................................... 6

Employment and vacancies quarterly survey has started.................. 12

Results of survey of services industries............................... 12

HK to take part in International Youth Exchange Programme.............. 17

Schools to take over salary assessment.............................. 18

Deputy trade chief to attend maritime transport negotiations........... 19

Insurance agent jailed for tax evasion................................. 20

Water storage figure................................................ 21

Hong Kong Monetary Authority money market operations................ 21

1

Transcript of the Governor's media session ♦ ♦ * * ♦

Following is the transcript of the remarks by the Governor, the Rt Hon Christopher Patten, after officiating at the topping-out ceremony of the Land Development Corporation's Wing Lok Street Redevelopment this (Monday) afternoon:

Question: After this morning's meeting, Government officials told the KCRC people to limit the scope of the technical study. Is it a sign that the Government retreats on this project?

Governor: No, not remotely. Let's be absolutely clear what the issues are. Everybody knows that Hong Kong needs a more extensive rail network. People know that we need a dedicated freight line to the north. They know that we need better passenger services to the north. And they know above all, particularly if they live in the Northwest New Territories, that we need better rail connections between Tuen Mun and other parts of the New Territories and the centre of the community - the centre of our city. Everybody equally knows that that's going to be one of biggest and most expensive infrastructure projects this community takes on after the airport. What we want to do is to take the project forward in as cost-effective a way as possible and as rapidly as possible. All that we are talking about at this stage is the essential studies which are required in order to make us, in order to put us in a position next year or the SAR in a position in which it can actually take decisions so that the project can start in 1998. There's never been any question of the project starting next year. It will be for, I imagine, us but probably even more the SAR Government to make the decisions in late 1997 or the middle of 1997. but then the work we want to start in 1998. It's only a week or two ago that some people were saying that we were trying to go too rapidly on the project. Now some people are saying that we're going too slowly on the project. What we’re actually trying to do is carry it forward as sensibly and as cost-effectively as possible. And that's what we'll continue to do. It's a big project. It's going to be a very expensive project. It involves a huge amount of land resumption which is going to take up a great deal of time and energy as well as money. What we want to see is the project goes forward, but it goes forward at the best price for the people of Hong Kong.

Question: Will the Government consult the Chinese side ...?

Governor: Well, we've been keeping the Chinese side informed and obviously we'll let the Preparatory Committee and others know what the proposals and the plans are. I don't think anybody should get too excited about this. I know perfectly well that the main decisions on an issue like this are going to be taken by the SAR Government, not by Chinese officials in Peking, not by the Governor of Hong Kong today. The main decisions are going to be taken by the Chief Executive and by the SAR. What I want to ensure is that the Chief Executive and the SAR are in the best position to take the most sensible decisions, and that's why we need to carry forward some studies now. but probably not as many as were originally thought.

2

Question: What is your view on Andrew's Wong decision to end the LegCo session ...?

Governor: Well, I haven't had any communication from Mr Wong, the President of the Legislative Council, so far. Let's be clear what the constitutional position is, and the position that I've followed every year since I've been Governor. I announce the opening date for a Legislative Council session and we've done that for the Legislative Council session in October. The Legislative Council then give me the dates for their meetings during the year including the last meeting of their session. I don't decide that. That comes from the President who presumably consults his colleagues in the Legislative Council, and I look forward to hearing from Mr Wong when he proposes that the Legislative Council should stop sitting.

Question: What would you like to see? Would you like to see it continues past July 1 ...?

Governor: Oh, there is no question that I want to see the present Legislative Council continue until 1999. That's what we think should happen. The question of the sittings of the Legislative Council has never had anything to do with the Governor except in so far as the Governor accepts the advice of the President of the Legislative Council in deciding when the last sitting should be.

Question: But if it ended that much earlier than usual, will it affect the Government in so far as the legislative programme is concerned?

Governor: I don't believe so, but we would have to make clear to the Legislative Council that we still wanted our programme got through as rapidly as possible during the next session as rapidly as possible bearing account of the fact that it has to be considered properly. I just want to make it plain. It's not the Governor who decides when the last meeting of the Legislative Council is. I haven't been President of the Legislative Council. I stood down from the job as President of the Legislative Council and the President of the Legislative Council will tell me in due course when the Legislative Council thinks that meeting should be. It doesn't alter the fact that we believe the Legislative Council should go through to the end of its four-year term. Okay. Thank you very much.

End

3

Government statement on WCR ♦ ♦ ♦ ♦ ♦

The Government today (Monday) asked the Kowloon-Canton Railway Corporation (KCRC) to critically review the need at the present stage to proceed with all the technical studies for the Western Corridor Railway (WCR) project and to focus now on those studies which are absolutely essential for establishing a firm alignment for the Railway.

Speaking after a meeting of the KCRC Board this morning, the acting Secretary for Transport, Mr Paul Leung, said the Corporation had been advised that constraints identified in relation to land clearance and resumption matters would make it impracticable to complete the WCR by 2001.

"KCRC have estimated that the project will require the clearance/resumption of some 270 hectares of government land and 130 hectares of private land. According to a preliminary estimate by Lands Department, this exercise will take about five years to complete."

"This suggests that construction is likely to have to begin later than envisaged in KCRC's proposed programme, and that the target completion date will have to be revised accordingly, to beyond 2001."

"Given this development, it may no longer be necessary for KCRC to proceed with their planned technical studies all at the same time. Government has therefore asked KCRC to consider limiting at the present stage the scope of the technical studies to those which are essential for refining the alignment for the WCR so as to minimise the requirements for land resumption and clearance."

Mr Leung said based on the results of these studies, Government and KCRC would be able to work out a more realistic programme including the target completion date and improve the accuracy of the estimated project cost.

He stressed that Government remains committed to taking the WCR project forward.

"The WCR is a priority project for Government as it will provide much needed transport capacity to meet both passenger and freight needs in the territory.

"We are committed to embarking on all necessary preparatory work to enable us to take a firm decision on the project as early as possible.

"We shall proceed with the construction only when there is general consensus on the scope, cost and timing of the project within the community," Mr Leung said.

End

4

Food hygiene campaign launched *****

The Department of Health and the Urban and Regional Councils today (Monday) launched a territory-wide campaign on food hygiene for people in the food business.

The campaign, entitled "Know more about food legislation for better food business management", will also include activities designed for primary and secondary school teachers and the general public.

The two-month-long campaign will comprise of 24 seminars. More than 4,000 staff of licensed food premises, cooked food stalls, canteens and other food eating establishments have enrolled to take part in these seminars to be held at various districts.

Assistant Director of Health, Dr Leung Pak-yin, took the opportunity to remind members of the public to observe good personal and environmental hygiene in the prevention of gastro-intestinal infections.

"Precautionary measures against food-borne disease are especially important with the approach of the summer season," he stressed.

Speaking at the opening ceremony of the campaign, the Vice-Chairman of the Urban Council Public Health Select Committee, Mr Wong Kwok-hing, pointed out that every year there were more than a thousand food-borne diseases and food poisoning cases occurred in Hong Kong which, he believed, could be avoided.

He said: "To prevent the occurrence of these cases, we should have a better understanding on the causes and ways of food contamination."

"In addition, precautionary measures should be taken to reduce the chance of contamination during the course of manufacturing."

Noting that major food poisoning outbreak could lead to financial loss of food traders, Mr Wong said the most effective way to build up consumer’s confidence was to adopt good personal, environmental and food hygiene.

Also speaking at the ceremony, the Chairman of the Regional Council Ad Hoc Committee on Food Surveillance of the Environmental Hygiene Select Committee, Mr Leung Che-cheung, said there were a number of food-related ordinances in Hong Kong to protect the consumers.

5

He said: "The ordinances cover a number of aspects of food hygiene but have a common aim of ensuring food safety.”

He said the presence of these ordinances could help maintain a fair competition between food traders as the unscrupulous ones would be punished.

Mr Leung said effective law enforcement was crucial in maintaining food safety. However, he stressed that food safety could not be achieved without the cooperation and participation of food traders.

During the campaign, a total of 24 seminars will be organised of which 20 of them are targeted at food traders.

Two separate seminars will be organised in collaboration with the Education Department for primary and secondary school teachers to enable them to relay health messages to their students.

The remaining two will be arranged for members of the public. Enrolment forms can be obtained from the various district offices, public libraries and district environmental health offices of the two municipal departments. Certificates of attendance will be awarded to participants after the conclusion of the campaign.

A 24-hour hotline 2723 0013 operated by the Department of Health will provide taped messages on the adoption of hygiene practices during the campaign period.

Callers can also leave their questions and telephone numbers with the hotline and staff from the Department’s Health Education Unit will return call.

Furthermore, mobile broadcasting teams of the unit will be deployed to disseminate food hygiene messages in the territory.

Printed education materials such as leaflets and posters can be obtained free from the Health Education Unit of the Department of Health, eighth floor, Fa Yuen Street Complex, 123A Fa Yuen Street, or the environmental hygiene offices of the Urban Services and Regional Services Departments.

End

6

Consumer price indices for May *****

The Census and Statistics Department today (Monday) released the Consumer Price Index (CPI) figures for May 1996 from both the new, 1994/95-based Index (CPI) series as well as the old, 1989/90-based series.

The year-on-year rate of increase in the 1989/90-based CPI(A) was 6.4% in May 1996. This was significantly lower than the 6.9% increase recorded in April.

More moderate increases were also recorded in the Consumer Price Index (B) and the Hang Seng CPI. In May 1996, the CPI(B) and the Hang Seng CPI rose by 7.2% and 7.4% respectively over a year earlier, as compared to the corresponding increases of 7.4% and 7.7% in April.

The Composite CPI, which is compiled based on the combined expenditure pattern of all households, also showed a slower year-on-year rate of increase, by 6.9% in May 1996, against 7.3% in April.

A Government spokesman said that the slower year-on-year rate of increase in the CPI(A) in May than in April was mainly due to lower prices of some fresh food items, including vegetables and live poultry. In addition, a slower year-on-year rate of increase in the charges for miscellaneous consumer services, resulting in part from a reduction in the charges for long distance telephone calls, also contributed. The prices of miscellaneous goods continued to record a year-on-year decline, while the year-on-year rate of increase in transport fares eased further.

Analysed by component, faster year-on-year increases than the overall average in May were recorded for housing (9.8% in the CPI(A), 11.5% in the CPI(B), 12.4% in the Hang Seng CPI and 11.3% in the Composite CPI).

Meanwhile, those components with slower year-on-year increases in prices than the overall average were durable goods (1.3% in the CPI(A), 1.8% in the CPI(B), 2.6% in the Hang Seng CPI and 1.9% in the Composite CPI); meals bought away from home (4.4%, 4.2%, 2.2%, 3.9%); fuel and light (4.7%, 4.7%, 4.6% and 4.7%); alcoholic drinks and tobacco (4.8%, 4.7%, 4.4% and 4.7%); food (excluding meals bought away from home) (6.0%, 5.9%, 5.7%, 5.9%); transport (6.3%, 6.4%, 5.9% and 6.2%); and miscellaneous goods (-2.3%, 0.3%, 1.9%, -0.3%).

Taking the first five months of 1996 together, the increase in the CPI(A) and CPI(B) averaged at 6.5% and 7.2% respectively over a year earlier. The corresponding increases for the Hang Seng CPI and Composite CPI were 7.9% and 7.1% respectively.

For the 12 months ended May 1996, the CPI(A) and CPI(B) were, on average, higher by 7.5% and 8.1% respectively than the preceding 12-month period. The corresponding increases for the Hang Seng CPI and Composite CPI were 8.7% and 8.1% respectively.

The new, 1994/95-based CPI series has been complied starting from October 1995 an$-is therefore not long enough for making year-on-year comparison. Neverthetejp, they may be used to analyse the short-term month to month price movemeijts. Comparing May 1996 with April 1996, the 1994/95-based CPI(A) decreased marginally, by 0.2%. On the other hand, the CPI(B), Hang Seng CPI and CompositWcPI showed small increases, by 0.1%, 0.9% and 0.2% respectively.

The seasonally adjusted monthly rate of increase in the 1994/95-based CPI(A) and CPI(B) averaged 0.7% and 0.6% respectively during the three months ended May 1996. The corresponding increases for the Hang Seng CPI and Composite CPI were both 0.7%.

Further details are shown in Tables 1-2 and Charts 1-4.

More details are given in the "Consumer Price Index Report" for May 1996, which is available at $37 per copy from the Government Publications Centre, Queensway Government Offices, Low Block, ground floor, 66 Queensway, Hong Kong; or from the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

For local and overseas mailings, contact should be made with the Information Services Department, 28th floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong.

For enquiries about the indices, please telephone the Consumer Price Index Section of the Census and Statistics Department on 2805 6403.

8

Table 1 Consumer Price Indices and Rates of Increase for May 1996

CcrrEcnent (Oct. 89 - Sep. 90 = 100) Ccmposite CPI

CPI(A) * CPI(B) Hang Seng CPI

Index for May 96 % change over May 95 Index for May 96 % change over May 95 Index for May 96 % change over May 95 Index for May 96 % change over May 95

Feed 157.0 +5.1 158.8 +4.9 159.5 +3.4 158.2 +4.7

Meals bought away from heme 168.7 +4.4 167.7 +4.2 166.1 +2.2 167.7 +3.9

Food, excluding meals bought away fron heme 145.3 +6.0 146.5 +5.9 148.3 +5.7 146.2 +5.9

Housing 2C0.6 +9.8 208.4 +11.5 216.1 +12.4 208.4 +11.3

Fuel and light 141.1 +4.7 140.7 +4.7 139.1 +4.6 140.6 +4.7

Alcoholic drinks and tobacco 207.9 +4.8 196.3 +4.7 190.4 ’ +4.4 201.4 +4.7

Clothing and footwear 166.5 +8.7 170.7 +9.3 185.0 +7.3 174.5 +8.4

Durable goods 118.9 +1.3 119.2 +1.8 126.5 +2.6 121.2 +1.9

Miscellaneous goods 138.1 -2.3 137.3 +0.3 •137.9 +1.9 137.7 -0.3

Transport 169.5 +6.3 168.3 +6.4 165.5 +5.9 167.9 +6.2

Miscellaneous services 183.6 +9.1 180.2 +8.4 164.4 +6.5 178.0- +8.1

All items 168.2 +6.4 171.4 +7.2 176.3 +7.4 171.5 +6.9

Monthly consumer price indices are compiled on 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 on these patterns derived frem the 1989/90 Household Expenditure Survey. The CPI (A) is based on the expenditure pattern of about 5C% of households in Hong Kong, which had an average monthly expenditure of $2,500-59,999 in 1989/90 (equivalent to $4,000-$15,999 in 1994/95). The CPI(B) is based on the expenditure pattern of the next 3C% of households, which had an average monthly expenditure of $10,000-$17,499 in 1989/90 (equivalent to $16,00O-$29,999 in 1994/95). 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 (equivalent to $30,000-559,999 in 1994/95).

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 carpiled based on the expenditure pattern of all these households taken together. Thus, while the CPI (A), CPI(B) and Hang Seng CPI show the inpact of consumer price changes on different groups of households, the Ccnposite CPI shows the impact of consumer price changes cn the household sector generally.

9

Table 2 Consumer Price Indices and Year-on-year Rates of Change for ____________________________May 1993 - May 1996________________________ (Oct. 89 - Sep. 90 = 100)

Year/month CPI(A) CPI(B) Hang Seng CPI Composite CPI

Index Year-on -year rate of change (%) Index Year-on -year rate of change (%) Index Year-on -year rate of change (%) Index Year-cn -year rate of change • ft)

1993 May 134.5 8.5 134.8 8.8 136.3 9.8 135.1 8.9

June 136.0 8.6 135.9 8.7 137.1 9.5 136.3 8.8

July 135.8 8.2 136.1 8.5 136.9 9.2 136.2 8.6

August 136.3 8.5 136.6 8.5 137.4 9.2 136.7 8.7

September 138.4 7.9 138.3 8.1 139.2 9.2 138.6 8.3

October 140.0 9.0 139.6 8.7 140.7 9.4 140.0 9.0

November 139.4 8.4 139.9 8.4 142.2 9.5 140.3 8.7

December 140.4 8.6 140.9 8.5 143.3 10.2 141.3 9.0

1994 January 140.0 6.2 140.7 6.9 143.4 9.0 141.1 7.2

February 142.7 7.8 142.9 8.1 144.9 9.8 143.3 8.4

March 142.5 8.0 143.0 8.2 145.3 9.2 143.4 8.4

April 143.8 7.7 144.8 8.2 147.9 9.9 145.2 8.4

>!ay 145.0 7.8 146.1 8.4 150.0 10.0 146.7 8.6

June 146.2 7.5 146.9 8.1 151.0 10.1 147.7 8.4

July 147.3 8.5 147.9 8.6 150.5 9.9 148.3 8.9

August 149.6 9.8 149.6 9.5 151.7 10.4 150.1 9.8

Septenter 150.3 8.6 150.8 9.0 153.4 10.2 151.3 9.2

October 151.1 7.9 152.2 9.0 155.3 10.5 152.6 9.0

November 151.4 8.6 153.1 9.5 157.3 10.6 153.5 9.5

Decenter 153.0 8.9 154.3 9.5 158.1 10.3 154.8 9.5

1995 January 154.1 10.1 155.3 10.4 158.2 10.3 155.6 10.3

February 155.4 8.9 156.6 9.6 159.0 9.7 156.7 9.4

March 156.1 9.5 157.4 10.0 159.7 9.9 157.5 9.8

April 157.6 9.6 159.2 9.9 162.3 9.8 159.4 9.8

May 158.1 9.1 159.9 9.5 164.2 9.5 160.4 9.3

June 159.2 8.9 161.1 9.6 165.6 9.7 161.6 9.4

July 159.8 8.5 161.5 9.2 165.7 10.1 161.9 9.2

August 162.0 8.3 163.1 9.0 166.6 9.8 163.6 9.0

September 163.7 8.9 164.5 9.1 168.5 9.8 165.2 9.2

October 163.8 8.4 165.6 8.8 170.0 9.4 166.1 8.8

November 163.8 8.2 165.8 8.3 171.2 8.9 166.5 8.4

December 163.1 6.6 165.5 7.3 170.6 7.9 165.9 7.2

1996 January 163.2 5.9 166.0 6.8 170.7 7.9 166.2 6.8

February 165.6 6.6 168.0 7.3 171.9 8.2 168.1 7.3

March 166.5 6.7 168.8 7.3 172.8 8.2 169.0 7.3

April 168.5 6.9 171.1 7.4 174.8 7.7 171.1 7.3

May 168.2 6.4 171.4 7.2 176.3 7.4 171.5 6.9

10

Chart 1 Year-on-year Rates of Increase in CPI(A)

Chait 2 Year-on-year Rates of Increase in CPI(B)

11

End

Chart 3 Year-on-year Rates of Increase in Hang Seng CPI

Chart 4 Year-on-year Rates of Increase in Composite CPI

12

Employment and vacancies quarterly survey has started ♦ ♦ ♦ ♦ ♦

A survey to collect data on employment and vacancies in major sectors of the economy in respect of June 1996 has just been started by the Census and Statistics Department.

The Survey of Employment and Vacancies is conducted quarterly and the 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 67,000 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 sendees sector (transport, storage and communications; financing, insurance, real estate and business services; community, social and personal services).

Information on number of persons engaged and vacancies as at June 28 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 and 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 may contact the department for assistance on 2582 5076.

End

Results of survey of services industries ♦ ♦ ♦ ♦ ♦

The business services, insurance, communications and storage industries registered significant growth in 1994. Compared with 1993, the total receipts (i.e. business receipts and other income) went up by 23% in value terms in the business services industry, 20% in the insurance industry, 16% in the communications industry and 15% in the storage industry.

The financing (except banking) industry also recorded an increase of 11% in the total receipts over 1993.

13

These are some of the major findings of the 1994 Survey of Storage, Communication, Financing, Insurance and Business Services, released today (Monday) by the Census and Statistics Department. The survey was conducted from May 1995 to early 1996.

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

In 1994, there were some 21,800 establishments operating in the business services industry, an increase of 29% over 1993. The industry includes legal, accounting, auditing, data processing, advertising and marketing firms and companies providing miscellaneous business services such as business management and consultancy, employment, secretarial, technical and machinery/equipment rental services.

The total receipts generated by these establishments amounted to $65 billion, an increase of 23% over 1993.

The gross surplus of the industry accounted for 18.1% of the total receipts, a decrease of 2.5 percentage points from 1993.

On the other hand, the total operating expenditure - comprising compensation of employees, operating expenses and value of purchases of goods for sale — of the industry amounted to 81.9% of the total receipts. This was 2.5 percentage points higher than the figure for 1993.

The total value added of the business services industry, a measure of the industry’s contribution to Hong Kong’s Gross Domestic Product, grew by 20% from $24.8 billion in 1993 to $29.7 billion in 1994. It constituted 45.6% of the total receipts and was 1.2 percentage points lower than the figure for 1993.

In the insurance industry, which includes general insurers, life insurers and insurance agents, there were 2,500 establishments in operation in 1994, an increase of 6% over 1993.

The insurance industry generated $41 billion of total receipts in 1994, an increase of 20% over 1993.

The total operating expenditure of the industry accounted for 23.3% of the total receipts, registering an increase of 0.4 percentage point when compared with 1993.

14

In the communications industry, there were some 620 establishments in operation in 1994, an increase of 10% over 1993. These include telephone, telegraph, courier and radio-paging companies.

The total receipts generated by these establishments amounted to $40 billion, which was 16% higher than 1993.

The gross surplus of the industry accounted for 35.9% of the total receipts, a decrease of 1.2 percentage points from the figure for 1993.

The total operating expenditure of the industry amounted to 64.1% of the total receipts. This was 1.2 percentage points above the figure for 1993.

The total value added of these establishments was $20.4 billion in 1994, representing an increase of 13% over 1993. It accounted for 51.7% of the total receipts, a decrease of 1.2 percentage points from 1993.

In the storage industry, there were 320 establishments in operation in 1994, an increase of 28% over 1993. The total receipts generated by these establishments amounted to $4 billion, an increase of 15% over 1993.

On the other hand, the industry's gross surplus accounted for 9.5% of the total receipts in 1994, a drop of 2.6 percentage points from the figure for 1993.

The total operating expenditure of the industry accounted for 90.5% of the total receipts. Compared with 1993, this was higher by 2.6 percentage points.

The total value added of the storage industry increased by 1% to $1.3 billion in 1994. It accounted for 28.9% of the total receipts, and was 4.0 percentage points lower than the figure for 1993.

In the financing (except banking) industry, there were some 4 900 establishments in operation in 1994, an increase of 19% over 1993. The industry comprises loan and mortgage companies, credit institutions, finance leasing companies, pawnshops, investment and holding companies, securities, futures and gold bullion brokers and dealers, money changers and foreign exchange brokers and dealers.

The survey did not include banking institutions and deposit-taking companies which were separately covered under the 1994 Survey of Banks, Deposit-taking Companies, Restricted Licence Banks and Representative Offices of Foreign Banks. The results of the latter survey will, however, be included also in the report on the former survey.

15

The financing (except banking) industry generated $106 billion of total receipts, an increase of 11% over 1993.

The gross surplus of the industry accounted for 54.8% of the total receipts. This was 7.2 percentage points lower than the corresponding figure for 1993.

On the other hand, the total operating expenditure of the industry accounted for 45.2% of the total receipts, an increase of 7.2 percentage points from the figure for 1993.

The total value added of the financing (except banking) industry, increased by 2% to $12.7 billion in 1994. It accounted for 12.0% of the total receipts in 1994, which was 1.2 percentage points lower than the figure for 1993. It should, however, be noted that the total value added calculated for the industry did not include that for investment and holding companies owing to the special features of their business operations.

More detailed results together with the background and methodology of the survey will be given in a full survey report to be published in around August 1996. The report will be on sale in August at the Government Publications Centre of the Information Services Department, Queensway Government Offices, Low Block, ground floor, 66 Queensway, Hong Kong; and the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Enquiries regarding the survey results may be directed to the Business Services Statistics Section of the Census and Statistics Department on 2802 1244.

End

Comparison of selected principal statistics for all establishments in the Storage, Communications, Financing (except banking), Insurance and Business Services Industries between 1993 and 1994

Industry Number of establishments Number of persons engaged Number of employees Compensation of employees Operating expenses Value of purchases of goods for sale Business receipts and other income Value added Gross surplus

$Mn. $Mn. $Mn. $Mn. $Mn. $Mn.

Storage 1994 319 5 517 5 457 782.5 3,217.5 - 4,419.1 1,278.9 419.0

1993 249 5 391 5 389 700.0 2,686.3 - 3,852.6 1,267.7 466.3

% change +28 +2 +1 +12 +20 - +15 +1 -10

Communications 1994 623 34 955 34 605 6,418.8 16,474.2 2,444.2 39,506.0 20,439.4 14,168.8

1993 567 33 708 33 266 5,548.0 14,212.3 1,699.4 34,116.4 18,058.1 12,656.7

% cliange +10 +4 +4 +16 +16 +44 + 16 + 13 +12

Financing 1994 4913 47 073 45 967 14,721.5 33,052.2 - 105,712.0 12,726.6 57,938.3

(except 1993 4 135 40 876 39 261 11,732.6 24,509.6 - 95,281.4 12,535.5 59,039.1

banking) % change +19 +15 + 17 +25 +35 - + 11 +2 -2

Business 1994 21 832 126 368 113 553 18,682.3 33,693.1 1,042.5 65,190.3 29,717.3 11,772.4

Services 1993 16 928 111 489 100 178 14,939.4 25,504.4 1,584.2 52,963.4 24,764.0 10,935.5

% change +29 +13 +13 +25 +32 -34 +23 +20 +8

Insurance 1994 2 454 29 179 27 731 6,233.5 3,442.0 - 41,468.3 - -

1993 2 306 25 120 23 917 5,073.1 2,830.2 34,503.7 - -

% change +6 +16 +16 +23 +22 - +20 - -

Notes : (1) In the financing (except banking) industry, value added was not compiled for investment and holding companies owing to the special features of thei business operations. Hence, total value added calculated for the industry did not include that of investment and holding companies.

(2) In the insurance industry, both value added and gross surplus were not compiled.

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

(4) Value added is a measure of the contribution of an economic sector/industry to Hong Kong’s Gross Domestic Product. The definition can be found in the "Report on 1994 Survey of Storage, Communication, Financing, Insurance and Business Services’*.

17

HK to take part in International Youth Exchange Programme ♦ ♦ ♦ ♦ ♦

Two groups of local young people aged between 18 and 24 will take part in the International Youth Exchange Programme 1996 which will take place in Britain and Germany this month and in July.

Introducing at a press conference today (Monday) the young delegates who will represent Hong Kong, the Chairman of the Commission on Youth, Mr Eric Li, noted the aim of the International Youth Exchange Programme was to broaden the outlook of young people of Hong Kong and to enable them to exchange ideas and experiences with their counterparts of other countries.

’’The Programme started in 1979 with exchanges between young people of Hong Kong and Britain. As in the past years, the Programme will include a three-week visit by a delegation comprising six young people to Britain, from June 29 to July 20 this year,” he said.

”In addition, to provide more opportunities for our young people to gain more international exposure, the Programme has been extended to cover a visit by another delegation consisting of ten young people to Germany from July 13 to 31.”

The itinerary in Britain will include visits to youth organisations, schools and universities, discussion on social issues and participation in recreational activities. It is hoped that the participants will acquire a better understanding of the British society through the tour which highlights education, housing and youth service in the country.

In Germany, individual home-stays with local families will be arranged to enable the participants to gain more insight into German culture and way of life. The tour will also focus on the political, economic and social aspects of the society. It will include a two-day trip to the Royal Highness' castle in Denmark and a former World War II concentration camp.

The 16 young delegates were chosen from over a hundred nominees from various youth organisations and government departments. Training has been provided to them so that they will introduce to their counterparts overseas different aspects of Chinese culture and Hong Kong society. They will have to prepare a report on their return to Hong Kong.

18

Mr Li added: "As the Exchange Programme is organised on a bilateral and reciprocal basis, young people from Britain and Germany will pay a visit to Hong Kong next year, which is tentatively fixed in July 1997."

He noted: "It is hoped that the trilateral exchange next year will enable young people from three different territories to share ideas and experiences. It is also a good chance to introduce the Special Administrative Region to our friends abroad when Hong Kong returns to China in 1997."

End

Schools to take over salary assessment *****

The Board of Education (BOE) was today (Monday) informed that schools would take over from the Education Department the assessment of teacher salaries with effect from August 1996.

At the BOE meeting this morning, the acting Assistant Director of Education, Mr Tse Kum-shing, said the Education Department understands the worries of schools due to their lack of experience in assessing teacher salaries.

"A series of 47 workshops have been held for over 1,440 participants from ordinary aided schools since the last school year to help and guide schools to conduct salary assessments.

"A similar workshop was also organised for special schools and attended by about 140 participants," Mr Tse said.

Replying to questions by BOE members, Mr Tse said that feedback from the participants was encouraging. Over 85 per cent described the workshops as "good" or "very good"; over 92 per cent considered both the briefing session and the case study session "useful" or "very useful".

Mr Tse said the participants considered that the workshops had given them some general knowledge of the subject and a grasp of the basic technical skills of salary assessment.

19

He said:"The majority of the 400 odd schools (primary and secondary) which have appointed new teaching staff after the workshops, have taken the initiative to assess salaries using the proforma provided in the Guide."

"They have achieved a high degree of accuracy and proved themselves competent in taking up salary assessment," Mr Tse added.

Mr Tse also informed BOE members that the Education Department would continue to conduct workshops and to provide guidance and support to schools.

Earlier, Mr Tse said the Education Department considers it inappropriate in principle and unreasonable in practice for District Education Officers/Inspectors (Special Schools Administration) to carry out salary assessment on behalf of schools.

"Schools, as employers, should be responsible for salary assessment for their staff members. With proper guidance and support, schools should be able to take up the duties of salary assessment for their staff."

He added that District Education Officers/Inspectors (Special Schools Administration) should concentrate on enhancing the quality of their output, either in respect of administration or in the implementation of various new measures targeted at a better educational service.

End

Deputy trade chief to attend maritime transport negotiations *****

The Deputy Director-General of Trade, Mr Tam Wing-pong, will leave for Geneva this (Monday) evening to attend the final round of the negotiations on maritime transport services conducted under the auspices of the World Trade Organisation (WTO).

Mr Tam will join 42 WTO members in the negotiations, with the aim of liberalising trade in international shipping, auxiliary services and access to and use of port facilities. The final round is scheduled to conclude by the end of June.

The talks on maritime transport services is the last of the four extended tracks of service negotiations required by the Uruguay Round.

20

The other three service sectors are basic telecommunications, financial services and movement of natural persons. Negotiations on these three sectors were concluded with interim agreements reached.

After the maritime transport service negotiations, Mr Tam will join the Hong Kong delegation in attending the Informal Ministerial Meeting at Lausanne on July 1 and 2 before returning to Hong Kong.

End

Insurance agent jailed for tax evasion ♦ ♦ ♦ ♦ ♦

A 39-year-old insurance agent who was found guilty of eight counts of tax evasion charges on May 27 was today (Monday) sentenced by the Wanchai District Court to three months' imprisonment.

In addition, he was ordered to pay a fine of $10,000 on each charge and a further fine of $840,000 which is equivalent to three times of the total tax evaded.

The defendant was allowed six months to pay the fine, failing which, he would be subject to a further imprisonment of six months.

The defendant, Paul Ng Wing-keung, is a Senior Agency Manager of National Mutual Company Limited and the proprietor of Paul Ng & Co.

He was charged with making fraudulent claims for tax deductible expenses for the four tax years from 1988/89 to 1991/92, contrary to Section 82(1 )(c) and Section 82(1 )(g) of the Inland Revenue Ordinance (Chapter 112). The false deduction claims amounted to $1,887,840 and the profits tax evaded was $284,391.

Delivering his judgement, Judge Sweeney commented that tax evasion is a serious offence, affecting community as a whole and should be liable to immediate imprisonment.

After taking into account the clear record and special circumstances containing in the Probation Officer's Report and mitigation made by the defence counsel, he sentenced the defendant to three months' imprisonment on each charge, to run concurrently.

Under the Inland Revenue Ordinance, a tax evader is liable to a maximum sentence of three years' imprisonment and a fine of $50,000 on each charge, in addition to a further fine equivalent to three times the amount of tax undercharged.

End

- 21 -

Water storage figure * ♦ * ♦ ♦

Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 90.9 per cent of capacity or 530.641 million cubic metres.

This time last year the reservoirs contained 395.234 million cubic metres of water, representing 67.4 per cent of capacity.

End

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

$. million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,714 0930 +244

Closing balance in the account 2,089 1000 +244

Change attributable to : 1100 +244

Money market activity +205 1200 +246

LAF today +170 1500 +246

1600 +205

LAF rate 4.00% bid/6.00% offer TWI 124.5 *+0.0* 24.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 4.91 2 years 2805 6.30 100.00 6.39

1 month 5.01 3 years 3904 6.30 99.01 6.80

3 months 5.20 5 years 5106 7.23 99.58 7.47

6 months 5.42 7 years 7305 7.60 99.73 7.80

12 months 5.81 5 years M502 7.30 99.34 7.62

Total turnover of EF bills and notes - $10,243 million

Closed June 24, 1996

End

DAILY INFORMATION BULLETIN

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

Tuesday, June 25, 1996

Contents Page No,

Promotions to secretary level announced................................ 1

Trade chief comments on promotion supersession......................... 5

Further amendments to Buildings Ordinance proposed..................... 5

Civil service pay rise decision made................................... 7

General holidays for 1997 published.................................... 7

Fewer transport complaints in first quarter of 1996.................... 9

Proposals to tidy up law on juvenile insurance policy................. 10

Taxi fare receipts format confirmed................................ 11

Site safety urged after inclement weather............................. 13

Contents

Page No,

Provisional retail sales statistics for April released...................... 14

Music and Dance Fund applications invited................................... 17

By-election for conduct council to be held in October.................. 17

Household expenditure survey report published.......................... 18

Health manpower survey to be conducted...................................... 19

Post offices to open early for special stamp issue.......................... 20

Hong Kong Monetary Authority tender results................................. 21

Hong Kong Monetary Authority money market operations

23

Promotions to secretary level announced *****

The Government announced today (Tuesday) the following promotions to the rank of Secretary, Government Secretariat with effect from June 1, 1996:

Dominic Wong Katherine Fok Rafael Hui

Joseph Wong Peter Lai

Bowen Leung Kwong Ki-chi

Secretary for Housing

Secretary for Health and Welfare

Secretary for Financial Services

Secretary for Education and Manpower

Secretary for Security

Secretary for Planning, Environment and Lands

Secretary for the Treasury

The following overseas officer will be superseded for promotion to Secretary, Government Secretariat, with effect from June 1, 1996:

Tony Miller

Director-General of Trade I Director of Housing (Designate)

Following are their biographical notes:

Dominic Wong Shing-wah. OBE, JP.

Aged 54, Mr Wong joined the Government in 1962 and was appointed to the Administrative Service in 1973. He rose to the rank of Administrative Officer Staff Grade A in 1991.

During the early years of his career, Mr Wong held appointments in the Economic Services Branch, Security Branch, the former Social Services Branch, the Royal Hong Kong Police Force and the Civil Service Branch.

He was Deputy Secretary for the Civil Service from 1984 to 1988 and Deputy Secretary for Education and Manpower from 1988 to 1989. He was appointed Postmaster General from 1989 to 1992 and Director of Education from 1992 to 1994.

Mr Wong took up his present post of Secretary for Housing in December 1994. He was awarded an OBE in 1993.

2

Katherine Fok Lo Shiu-ching, OBE» JE

Aged 54, Mrs Fok joined the Government as an Administrative Officer in 1962 and rose to the rank of Administrative Officer Staff Grade A in 1993.

During the early years of her career, she served in the Labour Department, Social Welfare Department, Finance Branch, the former General Branch, Home Affairs Department, Housing Department and Urban Services Department.

Following a four-year secondment to the Independent Commission Against Corruption, she became Secretary-General of the former Office of the Members of the Executive and Legislative Councils from 1988 to 1992.

She was Commissioner for Labour from 1992 to 1994 and took up her present appointment as Secretary for Health and Welfare in September 1994. Mrs Fok was awarded an OBE in 1993.

Rafael Hui Si-yam JP_

Aged 48, Mr Hui joined the Government in 1970 as an Assistant Education Officer and was appointed to the Administrative Service in 1971. He rose to the rank of Administrative Officer Staff Grade A in 1994.

Mr Hui spent the early years of his career in the Home Affairs Department, Security Branch, Economic Services Branch and the Independent Commission Against Corruption where he was on secondment.

On return from overseas training at Harvard University, he served in the Transport Branch and the former Office of the Unofficial Members of the Executive and Legislative Councils (UMELCO).

He was Deputy Secretary-General of UMELCO from 1985 to 1986, Deputy Secretary for Economic Services from 1986 to 1990 and Deputy Secretary for Works from 1990 to 1991.

Mr Hui was appointed Director of the New Airport Projects Co-ordination Office from 1991 to 1992 and Commissioner for Transport from 1992 to 1995.

He took up his present post of Secretary for Financial Services in September

1995.

3

Joseph Wong Wine-ping. JP

Aged 48, Mr Wong joined the Government as an Administrative Officer in 1973 and rose to the rank of Administrative Officer Staff Grade A in 1994.

During the early years of his career in the Administrative Service, he served in the former Economics Branch, Finance Branch, the former New Territories Administration, the former Office of UMELCO and Trade Department.

Over the years, he held a number of senior positions, including Deputy Director-General of Trade from 1987 to 1988, Deputy Secretary for the Civil Service from 1988 to 1989 and Deputy Secretary for Trade and Industry from 1989 to 1991.

Mr Wong headed the Government's Economic and Trade Office in Geneva as Principal Representative from 1991 to 1994. He was Director of Home Affairs from 1994 to 1995 and took up his present post of Secretary for Education and Manpower in September 1995.

Peter Lai Hing-ling. JP

Aged 45, Mr Lai joined the Government in 1973 as an Administrative Officer and rose to the rank of Administrative Officer Staff Grade A in 1994.

During the early years of his career, he served in a number of branches and departments including the former New Territories Administration, Security Branch, Urban Services Department, Civil Service Branch and the former General Duties Branch.

He was Deputy Secretary in the former Lands and Works Branch from 1988 to 1989. Deputy Secretary for the Civil Service from 1989 to 1991 and Deputy Secretary for Constitutional Affairs from 1991 to 1994. He took up his present post of Secretary for Security in February 1995.

Bowen Leung Po-wing, JP

Aged 46, Mr Leung joined the Government as an Administrative Officer in 1973 and rose to the rank of Administrative Officer Staff Grade A in 1995.

During the early years of his career he served in a number of branches and departments including Social Welfare Department, Security Branch, the former New Territories Services Department and the former City and New Territories Administration.

4

Mr Leung was Deputy Secretary for Home Affairs (formerly titled Deputy Secretary for District Administration) from 1987 to 1990, Deputy Secretary for Planning, Environment and Lands from 1990 to 1992 and Private Secretary, Government House from late 1992 to 1995.

He took up his present post of Secretary for Planning, Environment and Lands in May 1995.

Kwong Ki-chi> JE

Aged 45, Mr Kwong joined the Government in 1972 as an Assistant Trade Officer and was appointed to the Administrative Service in 1978.

He served in a number of branches and departments including the former Environment Branch, Home Affairs Department (which was once re-organised to become the City and New Territories Administration), the Finance Branch and Monetary Affairs Branch.

Mr Kwong received overseas training at the Cambridge University from 1984 to 1985. From 1989 to 1992, he was Deputy Commissioner for London.

On return to Hong Kong in 1992, he became the senior Deputy Secretary for the Treasury. Mr Kwong was promoted to the rank of Administrative Officer Staff Grade A in April 1995 when he took up his present appointment as Secretary for the Treasury.

John Anthony Miller. JP

Aged 46, Mr Miller joined the Government in 1972 as an Administrative Officer and rose to his present rank of Administrative Officer Staff Grade A in 1993.

During the early years of his career with the Administrative Service, he served in a number of branches and departments including Urban Services Department, Home Affairs Department, Housing Branch, Housing Department, Government House, the former Administrative Services and Information Branch and Trade Department.

He was Deputy Director-General of Trade from 1986 to 1989 and Information Co-ordinator from 1989 to 1991. Mr Miller became Director of Marine in 1991 and took up his present appointment as Director-General of Trade in March 1993. He will assume the post of Director of Housing in July.

End

5

Trade chief comments on promotion supersession

*****

In response to press enquiries concerning the announcement that he would be superseded for promotion to Secretary with effect from June 1, the Director-General of Trade, Mr Tony Miller, said this (Tuesday) afternoon he was pleased with the announcement which reflected Government’s recognition of his performance.

”1 recognise the constraints imposed by transitional arrangements. Nevertheless, I am pleased to have this recognition of my abilities. And I look forward to continue serving the community in my new capacity as the Director of Housing,” Mr Miller said.

End

Further amendments to Buildings Ordinance proposed ♦ ♦ ♦ ♦ ♦

The Govemor-in-Council has approved further amendments to the Buildings (Amendment) (No 3) Bill 1995 to better ensure safety at construction and demolition sites.

A government spokesman said today (Tuesday) the most significant change to the Bill would be the introduction of the specific requirements of a supervision plan before building works might commence.

The two main objectives of the Bill are to strengthen safety measures at construction sites and to promote self-regulation by building professionals and contractors.

Following extensive discussion at the Bills Committee and separate further consultation with professional bodies, the Administration recognised the need for a supervision plan as the safety of buildings and demolition works depended very much on the adequacy of site supervision provided during the construction stages, the spokesman said.

"The supervision plan proposed will set out the level of supervision requirement for each type of building works.

6

’’The responsibilities of the parties concerned in the supervision system, including that of contractors, site agents, work supervisors, building professionals and any persons carrying out building works, will be defined in a way reflecting their actual roles on sites,” the spokesman said.

The supervision plan will also set out the management structure required to ensure site safety.

To facilitate the design of the detailed supervision requirements, the Building Authority will issue technical guidelines and code of practice.

There will be three levels of sanctions for deviations from a supervision plan:

i) for minor deviations, the Building Authority will give administrative warnings;

ii) for material deviations or repeated minor deviations, the relevant parties may be subject to an investigation by a disciplinary board;

iii) for material deviations, which directly results in injury or damage or a risk of injury or damage, the responsible persons will be subject to criminal prosecution and a maximum fine of $250,000 and imprisonment for three years on conviction.

The spokesman said the Administration was of the view that in order to ensure safety at construction sites, there was a genuine need to administer criminal sanction against the relevant parties who failed their legal responsibilities resulting in or risking injury and damage.

"Nevertheless, the Government will adopt a pragmatic approach," the spokesman said.

"Provisions relating to criminal offences and penalties will come into effect one year after the commencement date of the Bill to allow time for the industry to familiarise them with the requirements of the supervision plan system."

End

7

Civil service pay rise decision made *****

Following discussion by the Govemor-in-Council today (Tuesday), the Administration has decided that the original pay offer of 7.67 per cent for the lower and middle salary bands and 7.68 per cent for the upper band and the directorate should be maintained.

"We have followed established practice in determining the pay adjustment figures this year. The pay increase is fair and reasonable," the Secretary for the Civil Service, Mr W K Lam, said.

"Despite some suggestions that the pay adjustment should be brought up to inflation, the Government remains of the view that there are no overriding reasons for doing so."

The cost of the pay adjustment for the civil service and subverted organisations is estimated to be $6.4 billion in 1996-97.

Subject to the provision of funds by Finance Committee of the Legislative Council, civil servants will receive the revised salaries at the end of July.

End

General holidays for 1997 published

*****

The following list of General Holidays for information:

1997 is published for public

Every Sunday

The first week-day in January Wednesday January I

The day preceding Lunar New Year's Day

Thursday February 6

Lunar New Year's Day

Friday

February 7

8

The second day of Lunar New Year Saturday February 8

Good Friday Friday March 28

The day following Good Friday Saturday March 29

Easter Monday Monday March 31

Ching Ming Festival Saturday April 5

Tuen Ng Festival Monday June 9

The Birthday of Her Majesty the Queen Saturday June 28

The Monday following the Birthday of Her Majesty the Queen Monday June 30

HK Returning to China, SAR Establishment Day Tuesday July 1

The day following SAR Establishment Day Wednesday July 2

Sino-Japanese War Victory Day Monday August 18

The day following the Chinese Mid-Autumn Festival Wednesday September 17

National Day Wednesday October 1

The day following National Day Thursday October 2

Chung Yeung Festival Friday October 10

Christmas Day Thursday December 25

The first week-day after Christmas Day Friday December 26

9

"The Government has decided to move the holidays to celebrate the Birthday of Her Majesty the Queen from the second Saturday and the following Monday to the fourth Saturday and the following Monday in June to facilitate community participation in the events surrounding the transition," a government spokesman said today (Tuesday).

An order announcing the change of date will be published in the Gazette.

End

Fewer transport complaints in first quarter of 1996 *****

The following is issued on behalf of the Transport Advisory Committee:

The number of complaints and suggestions received by the Transport Complaints Unit (TCU) of the Transport Advisory Committee for the period between January 1 and March 31 dropped by 6.1 per cent to 3,338 as compared with 3,556 in the previous quarter.

During the period, the major areas of complaint were related to public transport (74 per cent), road traffic conditions (12 per cent) and enforcement (10 per cent).

The number of complaints about public transport decreased by 5.9 per cent from 2,629 in the previous quarter to 2,474.

This was mainly due to decreases in complaints against taxi driver malpractices (down from 1,378 to 1,285), China Motor Bus (down from 255 to 171) and Citybus (down from 135 to 95).

However, complaints about Kowloon Motor Bus increased by 15.9 per cent from 277 to 321. There were also more complaints against rail services (up from 40 to 72), ferry services (up from 41 to 62) and green minibuses (up from 222 to 239).

Complaints about traffic congestion dropped by 25.2 per cent to 178 from 238. Complaints about road conditions also dropped by 2.8 per cent to 69 from 71.

10

During the same period, there were also fewer complaints about malfunctioning of traffic signs and aids (down from 50 to 31) and enforcement action (down from 350 to 338).

All suggestions and complaints received by TCU had been referred to the relevant authorities and government departments for investigation.

Members of the public may complain direct by dialling the Transport Complaints Unit hotline 2577 6866 or the new hotline 2889 9999 24 hours a day throughout the year.

End

Proposals to tidy up law on juvenile insurance policy ♦ * * * *

The following is issued on behalf of the Insurance Advisory Committee:

The Insurance Advisory Committee has endorsed proposals to tidy up the present legislation regarding requirement for insurable interest (that is pecuniary interest) for insurance policies, including the recognition of a parent’s insurable interest in the life of his/her child.

A spokesman for the Committee said at present, a person effecting a contract of insurance must have an insurable interest in the life or event insured.

"Under the common law, a parent has no insurable interest in the life of his/her child. A juvenile policy, whereby a parent takes out insurance on the life of his/her child and naming the parent as a beneficiary, is hence illegal and void," he said.

"The illegality of juvenile policies was identified in January 1995 and was then rectified by the insurance industry through the issue of a replacement policy to the effect that the parent acts as a trustee for the child who is named as the beneficiary.

"However this is cumbersome and is also inconsistent with practices in China, Singapore and Malaysia where insurable interest is legally recognised for the parentchild relationship.

11

"To rectify this anomaly, it is proposed that the Insurance Companies Ordinance be amended to recognise that a parent has an insurable interest in the life of his/her child."

The Committee has also discussed the revised Authorisation Guidelines of Insurance Companies as well as the Guidance Note for the Insurance Companies (General Business) (Valuation) Regulation.

The Insurance Authority will proceed to consult the industry and the professional bodies concerned before finalising them for issue to the public.

End

Taxi fare receipts format confirmed ♦ ♦ ♦ ♦ ♦

The implementation of the proposal to require taxi drivers to issue taxi fare receipts on demand is moving a step forward with the confirmation on the receipt’s format and printing time.

Transport Department is taking action to amend the Road Traffic (Construction and Maintenance of Vehicles) Regulation and Road Traffic (Public Service Vehicles) Regulation to include such requirement.

A spokesman for the department said the legislative amendments would, hopefully, be completed within 1996-97.

"It is hope that the requirement can come into effect one year after the enactment of the legislation," the spokesman said.

The Transport Advisory Committee (TAC) members were informed at their meeting today (Tuesday) of the progress in the implementation of this requirement which was recommended in the 1994 Taxi Policy Review.

A series of consultation and a product demonstration were conducted earlier this year to solicit the views of taxi operators and drivers concerning the requirement for taxi drivers to issue a fare receipt on demand.

The receipt requirement was well received by operators, drivers, and members of the public.

12

This will require taxi operators/drivers to install a printer which is capable of producing receipts containing the following information:

* registration number of the taxi;

date and time when the journey starts;

* date and time when the journey ends;

* total distance travelled;

* distance over which a distance rate is charged;

* waiting time over which a time rate is charged;

* surcharges, if any, and

total taxi fare.

The spokesman said these information should be printed in simplified Chinese characters in full or in a simplified form with each item of the above information being denoted by a number.

An explanatory note for the fare receipt items in Chinese and English will be required to display inside a taxi to avoid confusion.

The receipt must be printed within 12 seconds so as not to cause traffic delay and inconvenience to the passengers.

The spokesman said: ’’This duration is considered appropriate because it is roughly the time being taken by a passenger to settle the fare.”

The spokesman noted that a receipt printer could be an integral part of a taximeter or be added onto some existing taxi-meters now being used in taxis.

Depending on the type of printer chosen, the capital cost of a printer will be ranged from $1,000 to $6,000, which forms only a small proportion for the operating cost of a taxi.

On the related recurrent expenses, the cost of consumable, including paper and ribbon, is estimated to be about $15 per month.

The spokesman said a hand-written receipt using a pre-printed form could be used to replace the receipt in times when the receipt printer was malfunction.

The pre-printed form will show similar information as a receipt with the addition of the name of the driver and transport complaint hotline number.

End

13

Site safety urged after inclement weather *****

The Labour Department today (Tuesday) urged contractors and construction site management staff to take all necessary safety measures to ensure that work sites are safe for workers.

’’Following the inclement weather in the past few days, it would be of paramount importance to check site conditions thoroughly and carry out any necessary repairs or rectifications to render the site safe before resuming normal operation,” acting Chief Factory Inspector, Mr Tse Ming-sing, said.

Common hazards found on sites after inclement weather include:

(a) flooding in excavations or caissons;

(b) damaged bamboo scaffolds or damaged working platforms on these scaffolds;

(c) caving in of the sides of excavations and damage to the shoring;

(d) loosened anchorage of lifting appliances;

(e) leakage of electric current from electrical installations; and

(f) missing safety fencing.

Mr Tse said the general duties provisions of the Factories and Industrial Undertakings Ordinance required employers to provide a safe plant and a safe system of work for employees. Employees should co-operate by using safety equipment provided by their employers.

Ue also reminded contractors and workers who had any site safety problems that they were welcomed to contact the factory inspectors through the 24-hour industrial safety hotline 2815 0678.

End

14

Provisional retail sales statistics for April released *****

The value of total retail sales in April 1996, estimated at $16.7 billion, increased by 5% when compared with April 1995, according to the provisional figures released by the Census and Statistics Department today (Tuesday).

After discounting the effect of price changes over the period, total retail sales showed a small increase of 0.3% in volume.

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 (CPI) are used as deflators.

In parallel with CPI, both the series of value indices and volume indices of retail sales have been rebased, taking the twelve months from October 1994 to September 1995 as the new base period.

Starting from the data release for the reference month of April 1996, the published value and volume indices of retail sales and their year-on-year rates of change will be based on the new rebased series.

Compared with a year ago, sales of motor vehicles increased by 13% in value and 14% in volume. This is consecutively the second month where year-on-year growth in volume terms has been registered since July 1994.

Concurrently, sales of some other commodities also recorded increases in both value and volume terms. These included consumer durable goods other than motor vehicles (6% in value and 5% in volume); miscellaneous consumer goods (9% in value and 4% in volume); and clothing and footwear (8% in value and 1% in volume).

Meanwhile, sales of food, alcoholic drinks and tobacco went up by 9% in value, albeit virtually no change in volume.

On the other hand, sales in supermarkets rose by 6% in value but dropped by 1% in volume. Sales of valuable goods (jewellery, watches and clocks and valuable gifts) and fuels both registered virtually no change in value but declined by 3% and 7% in volume respectively. Sales in department stores also went down by 5% in value and 9% in volume.

15

Compared with March 1996 (but bearing in mind that this comparison is affected by seasonal factors), total retail sales in April 1996 decreased by 6% in value and 8% in volume.

Comparing the period from January to April 1996 with the same period in 1995, total retail sales rose by 5% in value and 0.2% in volume.

Table 1 presents the revised total retail sales figure for March 1996 and the provisional figure for April 1996.

Table 2 shows the value and volume indices of retail sales in April 1995, March 1996 and April 1996 for all retail outlets and by type of retail outlets, with average retail sales from October 1994 to September 1995 taken as 100.

Comparisons of the April 1996 results with those for March 1996 and those for April 1995, as well as comparison of retail sales in the period from January to April of 1996 with the same period in 1995 are also given.

The report containing the analysis of the April 1996 results and the rebased series of retail sales indices from October 1994 to April 1996 is now on sale at $4 per copy at the Government Publications Centre, Queensway Government Offices, ground floor, Low Block, 66 Queensway; and the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai.

Enquiries about the survey results may be directed to the Wholesale and Retail Trade Statistics Section of the Census and Statistics Department, Tel 2802 1258.

16

TABLE 1 : TOTAL RETAIL SALES

Total Retail Sales for April 1996 (Provisional Figure) = HK$16,704.4 million

for March 1996 (Revised Figure) = HK$17,690.9 million

I

TABLE 2 : VALUE AND VOLUME INDICES OF RETAIL SALES FOR APRIL 1995, MARCH AND APRIL 1996

(Monthly average of Oct 94 - Sept 95 = 100)

Type of Outlet Type of Index Index Number % Change

Apri I 1995 (Revised figures) March 1996 (Revised figures) Apri I 1996 (Provisional figures) Apr 1996 compared with Mar 1996 Apr 1996 compared wi th Apr 1995 Jan - Apr 1996 compared with Jan - Apr 1995

(Point) (Point) (Point) (%) (%) (%)

(A) FOR ALL RETAIL OUTLETS

Value 91.5 101.9 96.2 -5.6 ♦5.2 ♦5.3

Volume 90.5 98.4 90.8 •7.7 ♦0.3 ♦0.2

(B) BY TYPE OF RETAIL OUTLETS

Food, alcoholic drinks Value 100.8 104.4 109.5 ♦4.8 ♦8.7 ♦8.1

and tobacco (other Volume 101.2 98.8 101.6 +2.9 ♦0.4 ♦3.3

than supermarkets)

Supermarkets 0 Value 92.8 102.8 98.5 •4.2 ♦6.1 ♦8.5

Volume 92.4 95.8 91.9 -4.1 -0.5 ♦ 1.3

Fuels Value 98.2 92.5 97.9 ♦5.8 -0.3 ♦5.3

Volume 96.6 85.6 90.0 ♦5.2 •6.8 -1.8

Clothing, footwear and Value 93.8 98.6 101.6 ♦3.1 ♦8.3 ♦14.4

allied products Volume 91.0 97.3 92.1 -5.4 ♦ 1.2 ♦6.1

Consumer durable goods Value 89.8 96.4 96.9 ♦0.5 ♦8.0 -5.9

Volume 89.4 95.3 96.1 ♦0.8 ♦7.4 -6.6

- Motor vehicles Value 69.9 86.9 79.2 -8.8 ♦ 13.4 -25.3

and parts Volume 69.2 86.2 78.6 •8.9 ♦ 13.5 -25.1

- Consumer durable Value 101.8 102.1 107.6 ♦5.3 ♦5.7 ♦6.1

goods other than Volume 101.7 100.8 106.6 ♦5.8 ♦4.9 ♦4.7

motor vehicles

and parts

Department stores Value 90.2 97.4 86.1 •11.6 -4.5 ♦3.6

Volume 88.3 95.5 80.3 •15.9 -9.1 -1.8

Jewellery, watches Value 83.9 115.1 84.3 -26.8 ♦0.5 ♦ 1.2

and clocks, and Volume 83.3 110.0 80.6 -26.7 -3.2 -4.6

valuable gifts

Other consigner goods Value 90.7 103.2 98.7 -4.3 ♦8.8 ♦ 10.5

not elsewhere Volume 90.5 99.0 94.3 -4.8 ♦4.2 ♦5.8

classified

NOTE : 0 Not including supermarkets operating in department stores. The underlined figures were rounded up to 5.

End

17

Music and Dance Fund applications invited ♦ ♦ ♦ ♦ ♦

Applications are now invited for grants from the Hong Kong Jockey Club Music and Dance Fund for the year 1996-97.

Grants are primarily for education and/or training in the fields of music and dance and associated activities.

In previous years, grants were made to schools and music/dance organisations for purchasing or repairing musical instruments and dance equipment; purchasing music scores and parts; and organising music/dance camps and workshops.

Applications can also be made for other purposes which conform with the overall educational aims of the Fund.

All registered non-profit-making organisations are eligible to apply. The closing date is July 26.

Application forms and information pamphlets are now available at:

Hong Kong Jockey Club Music and Dance Fund Secretariat 40th floor, Revenue Tower 5 Gloucester Road, Wan Chai, Hong Kong

Mong Kok and Sha Tin music centres of the Music Office

Further details can be obtained on 2594 5628.

End

By-election for conduct council to be held in October ♦ ♦ ♦ ♦ ♦

The Assistant Director of Education (Services), Mr David Pun. said today (Tuesday) that a by-election for the five vacant seats on the Council on Professional Council in Education (CPCE) would be held on October 3.

In the second CPCE election held this April, one seat each in five categories remained unfilled.

18

These five categories are government secondary school, government primary school, private primary school, kindergarten and teachers’ union.

Mr Pun said the Education Department had consulted 22 members of the Council on the date of the by-election.

"So far, 20 returns had been received," he said.

Among them, 15 members are in favour of holding the by-election on October 3 while five members prefer to have it on July 11, he noted.

Mr Pun said details of the by-election would be sent to concerned parties in due

course.

"Meanwhile, they can consider to nominate suitable candidates to stand for the election," he added.

CPCE is a non-statutory body to advise the Government on measures to promote professional conduct in education, including the drafting of operational criteria defining the conduct expected of an educator, and to advise the Director of Education on disputes or alleged professional misconduct.

End

Household expenditure survey report published

*****

A detailed report entitled "1994/95 Household Expenditure Survey and the Rebasing of the Consumer Price Indices" was recently published by the Census and Statistics Department.

The 1994-95 household expenditure survey (HES) was conducted from October 1994 to September 1995 to collect up-to-date information on expenditure patterns of households in Hong Kong.

The information collected is used in updating the expenditure weights which are essential inputs to the compilation of the Consumer Price Indices (CPIs).

19

Over the five-year period, from 1989-90 to 1994-95, the most significant changes in the expenditure weights of CPIs have been a decline in the expenditure share of food (by four to six percentage points) and an increase in that of housing (by four to five percentage points).

The new expenditure patterns derived from the results of the 1994-95 HES has been used in compiling the new 1994-95-based CPIs.

More details on the results of the 1994-95 HES and the new CPI series are given in the report. The report also contains concepts and methodologies of the 1994-95 HES and the CPIs.

The report can be purchased at $30 per copy from the Government Publication Centre, ground floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong. It is on sale at the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

End

Health manpower survey to be conducted *****

The Department of Health will conduct a health manpower survey next month to update information on the size and characteristics of the various types of medical and health staff in Hong Kong.

Announcing the impending survey today (Tuesday), a spokesman for the department said the results would be useful for health manpower planning purposes.

Questionnaires will be sent early next month to about 10,000 institutions with medical and health staff in both the public and private sectors requesting them to supply the relevant information.

These institutions include hospitals, clinics, maternity homes, private practitioners’ offices, dental surgeries, medical, X-ray and dental laboratories, dispensaries, elderly homes and optical shops.

It is hoped that these institutions will give the survey full support and return the completed questionnaires to the Statistics Unit of the Department of Health on or before July 26.

20

"Their participation and co-operation are extremely important to make the survey a success," the spokesman stressed.

He said the information supplied by individuals and institutions would be kept confidential and only used for compilation of aggregate statistics.

A similar health manpower survey was conducted in 1992 by the Department of Health.

End

Post offices to open early for special stamp issue ♦ ♦ ♦ ♦ ♦

The Postmaster General, Mr Robert Footman, today (Tuesday) announced that the opening time of 20 district post offices in the territory will be advanced to 8 am tomorrow (Wednesday), the first day of issue of the "Archaeological Finds of Hong Kong" special stamps.

Mr Footman said: "This is one of our initiatives to improve our services to the public. Depending on the results of this trial, we shall consider the need for extending the arrangement to other post offices on the first day of issue of special stamps in future."

There will be a total of 23 post offices which will be open at 8 am to provide full range of counter services tomorrow under this arrangement, including three which are already open at 8 am on normal weekdays. The 23 post offices are:

Hong Kong

General Post Office

Aberdeen

Shau Kei Wan

Sai Ying Pun

Tsat Tse Mui

Wan Chai

Wah Fu

21

Outlying Islands

Cheung Chau

Knwlnon

Tsim Sha Tsui Cheung Sha Wan Kowloon Central Kowloon City Kwun Tong Rennis’s Mill Village Tseung Kwan O To Kwa Wan

New Territories

Yuen Long Sha Tin Sai Kung Shek Wu Hui Tuen Mun Central Tai Po Tsuen Wan

End

Hong Kong Monetary Authority tender results

*****

Tender date

Paper on offer

Issue number

Issue date

Maturity date

25 Jun 1996

EF bills

Q626

26 Jun 1996

25 Sept 1996

22

Amount applied HK$6,736 MN

Amount allotted HK$ 1,500 MN

Average yield accepted 5.19 PCT

Highest yield accepted 5.20 PCT

Pro rata ratio About 34 PCT

Average tender yield 5.21 PCT

Hong Kong Monetary Authority

Tenders to be held in the week beginning 1 Jul 1996

Tender date 2 Jul 1996 2 Jul 1996

Paper on offer EF bills EF bills

Issue number Q627 H668

Issue date 3 Jul 1996 3 Jul 1996

Maturity date 2 Oct 1996 2 Jan 1997

Tenor 91 days 182 days

Amount on offer HK$1,5OO+3OOMN HK$800+160MN

Coupon

End

23

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 2,089 0930 -131

Closing balance in the account 1,667 1000 -131

Change attributable to : 1100 -131

Money market activity -132 1200 -132

LAF today -290 1500 -132

1600 -132

LAF rate 4.00% bid/6.00% offer TWI 124.5 *+0.0* 25.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 4.94 2 years 2805 6.30 99.99 6.40

1 month 5.02 3 years 3904 6.30 98.98 6.81

3 months 5.20 5 years 5106 7.23 99.54 7.48

6 months 5.43 7 years 7305 7.60 99.64 7.81

12 months 5.82 5 years M502 7.30 99.26 7.64

Total turnover of EF bills and notes - $11,803 million

Closed June 25, 1996

End

DAILY INFORMATION BULLETIN

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

Wednesday, June 26, 1996

Contents

Page No.

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

Government to take active approach to fight discrimination.............

ICAC Complaints Committee first annual report tabled...................

Research grants for tertiary institutions for 1996-97 .................

Governor visits Southern district......................................

Three lots to let......................................................

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

1

Transcript of the Governor's media session

*****

Following is the transcript of the media session by the Governor, the Rt Hon Christopher Patten, after visiting the Southern District this (Wednesday) afternoon:

Governor: I'd just like to say one thing about my visit today. You know that I've started off today by looking at some of the Caritas services for children newly arrived here from mainland China. We are obviously extremely keen to develop comprehensive services for those who come from mainland China, new immigrants to Hong Kong. We want to ensure that they know what their rights and entitlements are in Hong Kong, know what they can be expected to receive and we've produced what I think is an extremely good little booklet which we are distributing as widely as possible. I think the whole community appreciates that in areas like education, we want to give new immigrants the best possible chance of settling down quickly in Hong Kong and making a real substantial contribution to our community and bettering themselves at the same time. So I'll be visiting one or two other services for new immigrants in coming months and I'm hoping to speak on the subject in the autumn.

Question: Mr Patten, Two questions. What do you think in your opinion the priority tasks of the Chief Executive (Designate)? And yesterday and today, some pro-Chinese figures send their praise to Mrs Anson Chan for her possibility to become the number one person after 1997, what is your opinion? And the second question is now there is still one year's time what do you think what remains to be done by your Government? And you personally do you think that you can improve relationship with Chinese side, especially do you think you can have the chance to meet Mr Lu Ping and discuss the transitional matters for Hong Kong?

2

Governor: What a question! Huge questions! Let me start with the first question. I don't think it's for me to set out the priorities for the Chief Executive (Designate) whoever that person may be. They'll have a very clear idea of what they need to do. But obviously in my Policy Address this year and in other speeches I'll want to set out what I think are some of the challenges ahead for Hong Kong, some of the problems which we haven't been able to completely or successfully tackle in the last few years, some of the difficulties that lie ahead. I think that one of them is a subject I referred to on a number of occasions. Hong Kong is going through two transitions. There is the political transition from British to Chinese sovereignty. But there's another transition as well. Hong Kong is at present a prosperous Asian city. It's on the way to becoming one of the most important financial and business centres in the world, and we would like to see that transition completed successfully. It requires that we ensure that we stay competitive. It means that we have to go on ensuring that our young people are as well educated and trained as possible. That's one reason why I'm delighted that we've been able to increase spending on education in the last four years in real terms after inflation by about 25 per cent. That isn't telling my successor what he or she should do. It's setting out what I think all of us recognise are some of the major challenges for Hong Kong over the next few years. There arc others in the social field as well as in the economic, for example we're reviewing our housing strategy at the moment. It's something which Rosanna Wong whom I saw earlier today and Fung Tung have been working on, and obviously that's going to produce a new agenda in the housing field for the SAR Government.

The second question you asked was about.... The second question in the first, the second question in the first question. Obviously it's inappropriate for me to comment on who may or may not be the Chief Executive (Designate) of the SAR. What I can say is that Hong Kong today has an outstanding Chief Secretary who's recognised as such in Hong Kong and right around the world. She's impressed only recently American audiences just as much as she impresses people in Hong Kong which you can see from the opinion polls. And why does she impress people? Because she is honest, she is principled, she is decisive and she is a real leader. But I'm only commenting on her qualities as Chief Secretary. It's not for me to comment on or speculate about anything else. Your second big question?

Question: There is still a one year's time ... what remains to be done? And how about your personal relationship with China ...?

3

Governor: The relationship between me and China isn’t a problem of my making. It’s a problem, it’s a knot which has been tied by Chinese officials and I think the whole community regards it as not very sensible, and I think the whole community wishes that Chinese officials would untie the knot. But that’s a matter for them. I’m going to continue for the next year doing three things. First of all ensuring that Hong Kong is as well governed as possible and I’ll hope that we can complete as far as possible the major programme of reform that I put in hand in 1992. Secondly, I’ll continue to defend all the promises that were made to Hong Kong in the Joint Declaration and speak out for the values and freedoms that have helped to make Hong Kong so successful. And thirdly, there are of course some outstanding matters affecting the transition which still need to be cleared up. The Joint Liaison Group is I think working much better. I think there is a much more co-operative atmosphere, and I think there is a recognition on the Chinese side of how much more needs to be done in the next 12 months. There are issues like adaptation of laws which we need to be clear about. There are issues like right of abode where there are still some questions that need to be resolved. So we’ll be working to clear up those matters too in the next 12 months.

Question: Some legislators have asked you to step in and help Albert Tong who is facing deportation. What is you position on this?

Governor: My position on Albert Tong is that I’ll be sending the letter that I was given by Mr Ho and Mr Cheng today to the Home Secretary. I'll be asking ministers in the United Kingdom what the latest position is on Mr Tong’s medical condition. I'm sure that ministers will want to take that into account in any decisions they'll take about deportation.

Question: Some legislators ... that water fees should be frozen. What is your position on freezing water fees ...?

Governor: Freezing water fees. There is no such thing as a free lunch as you know and there is no such thing as a free bucket of water. Hong Kong has a programme of investment in water and in sewage and somebody has to be pay for that. I understand the concern of legislators that we should have as cost-effective a service as possible. I understand the pressure from legislators for greater efficiency in the delivery of water services and in the implementation of our sewage strategy. But if the money doesn't come from charges, then it has to come from the taxpayer, and if it comes from the taxpayer it means that money can't go on other things which legislators press us to spend on. So I think the simple reply is that while wc understand the pressure for improved efficiency in the water service and elsewhere the money has to come from somewhere in Hong Kong as everywhere else.

4

Question: Governor, for German Television. What would you tell people who really worry about their future and think about emigrating and leaving Hong Kong? What do you tell these people, for example some of your friends who you've probably made here since you are here?

Governor: What I tell them is this. When others talk about Hong Kong, when others speculate about Hong Kong's future, they very often it seems to me do so as though the people who've made Hong Kong's success don't exist. They talk about Hong Kong as though it was hit by a neutron bomb, as though the six million people who live here, who've made this extraordinarily special and successful community simply were to be disregarded. I think that the main reason for being optimistic about Hong Kong's future is the six million people who live in Hong Kong, who've made it with no natural advantages one of the greatest cities in the world and will, I believe, continue to stand up for the things that have made Hong Kong successful in the future. Let me add just a couple of things. Sometimes people say that in Hong Kong people don't care all that much about human rights for instance. The majority of people in Hong Kong are here because of human rights. Two-thirds to three-quarters of people in Hong Kong are themselves refugees or the family of refugees. They know what the rule of law means, and they know what life is like without the rule of law. And they know that they can make a difference to the maintenance of Hong Kong's freedoms and values by speaking up for them, by standing up for them. Second thing I would say is that we have in Hong Kong not just the spectacularly successful economy but we have all the institutions of what political scientists call civil society. There is a commitment to those - to professions, to churches, to independent courts, to non-governmental organisations, to political parties, to free newspapers - there is a commitment to those things. And I believe that they'll survive provided that people want them to survive. What I can't do is to act as a character witness for China. What I can do is speak out as a character witness for the extraordinary qualities of people in Hong Kong.

Question: Will these people stand up and speak up after the take-over ...?

Governor: Well, you are not going to find in Hong Kong that at mid-night on the 30th of June next year, as a press statement pointed out yesterday, the Monday after the Queen's birthday, you are not going to find out, you are not going to find that at midnight that night suddenly people are transformed, they become something else, that their concern about civil liberties, about having a share in the governance of this society is going to be snuffed out. They're going to be the same people, the same successful, brave, resilient people after the first of July as they are today.

Question: Would you please comment on Chairman Andrew Wong's decision that the last meeting on Legislative Council will be closed on the 25th of June next year?

5

Governor: Well, I’ve commented on it the other day. And my reply today is going to be remarkably similar to the reply I gave the other day. And I'll give it if you let me. The reply is this - that I haven't yet heard from the President of the Legislative Council about the dates of sittings of the Legislative Council next year. The constitutional position, now that I am no longer the President of the Legislative Council, is that I specify the date at which the Legislative Council will begin, the date on which I am going to make my Policy Address and I've already given — that is the second of October this year. I then when I've heard from the President of the Legislative Council accept when the Legislative Council will close down for the summer. But I'll do that again this year. But none of that affects the fact that the British Government, the Hong Kong Government, and the overwhelming majority of people in Hong Kong think that the Legislative Council that was elected freely and fairly by a record number of people in September last year should continue to go through to 1999.

Question: And the civil service pay rise rate has been endorsed by the Executive Council.

Governor: It has indeed.

Question: And it is the lowest rate for the past ten years. Some of the civil service associations are afraid that it will destroy the morale of the civil servants during the transitional period. So how do you respond to their discontent?

Governor: Well, the percentage pay rise is lower because inflation has been falling. The actual rate of inflation today is half, less than half what it was in the year before I arrived in Hong Kong. I am delighted that Financial Secretary has helped to keep Hong Kong so competitive by edging inflation down though 1 still believe that it is too high. We have a formula for setting civil service pay and it's a fair formula. We have pay trend indicators which reflect what's happening in the private sector and I think there is a broad agreement in the community that is the fairest and most acceptable way of dealing with civil service pay. Now we follow that trend survey, and if we depart from it this year, what's going to happen in other years, conceivable years when the figures aren't as helpful. There is one other thing that we follow, and that is that we regularly raise the lower band percentage up to the middle band level when the lower band was lower. We've done that again this year at a cost as I recall of seven to eighty million dollars, at eighty million dollars. That's fair to the lower paid. But I don’t think it would be right to overthrow the pay trend indicators because it would destroy at a sensitive time, the basis for fair civil service pay settlements. We all know that we have an outstanding civil service in Hong Kong. I think that we respond to that by ensuring that we have adequate investment in civil service training and that we give civil servants decent remuneration. The key indicators when you're looking at remuneration are whether what you are paying people motivates them, whether it recruits them, whether it retains them. And I think we can honestly say that the overall pay that we provide our civil servants in Hong Kong achieve those three objectives. Thank you very much.

End

6

Government to take active approach to fight discrimination * ♦ ♦ * ♦

The Government will initiate legislation to ban discrimination on the ground of family status and adopt practical measures to address discrimination in the area of sexual orientation, the Secretary for Home Affairs, Mr Michael Suen, said today (Wednesday).

The way forward was devised on the basis of public views contained in more than 8,800 and 10,000 submissions received in response to the consultation documents on family status and sexual orientation respectively.

At a press conference to announce the findings of a two-month public consultation conducted earlier this year, Mr Suen said the submissions showed a clear public demand for legislation to protect the rights of persons of different family status and a majority preference for administrative measures to tackle discrimination on the ground of sexual orientation.

Mr Suen paid tribute to the many organisations and individuals who have aired their views.

"The enthusiastic response clearly reflects a deep concern of the community about the issues," he said.

He said most respondents felt that discrimination on the ground of family status was common in employment, education and provision of services, and was particularly affecting women who assume the responsibility of carers in the family.

Mr Suen said preparation for legislation to eliminate discrimination on the ground of family status would start immediately.

It could either be in the form of a self-contained bill, or alternatively, the Sex Discrimination Ordinance (SDO) could be extended to cover family status as an area of discrimination under the ordinance.

"The extension should be simple and straightforward as the SDO already prohibits discrimination on the ground of marital status, which is a form of family status," he said.

7

Legislation regarding family status will cover a similar scope of activities as SDO. SDO currently outlaws discrimination in the areas of employment, education, disposal and management of premises, provisions of goods and services, and activities of clubs and government.

"We also propose that the remit of the Equal Opportunities Commission be broadened to handle complaints and requests for assistance in this area," Mr Suen added.

Apart from a clear support for legislative means, feedback from the consultation also revealed a strong demand for non-legislative measures to help enhance equal employment opportunities and to relieve persons of a particular family status, especially single parents and those who have to take care of the elderly or disabled members of their families.

Mr Suen said to address public concern on this issue, the Administration proposed also to adopt the following administrative measures:

* strengthening public education through civic education and family life education;

* continuing to facilitate persons with family responsibility to re-enter the labour market;

* encouraging employers to implement flexible working hours and parental leave system.

Turning to the result of the consultation on discrimination on the ground of sexual orientation, Mr Suen said submissions reflected divergent views on this issue.

While some pointed out that homosexuals suffer from public misconception about them and discrimination in the areas of employment and provision of accommodation, others maintained that the problem of discrimination on the ground of sexual orientation was not serious in Hong Kong.

Some made the point that homosexuality was against traditional Chinese culture which placed much emphasis on the institutions of family and marriage.

On the proposal to introduce legislation to prohibit discrimination on the ground of sexual orientation, over 85 per cent of the submissions indicated strong opposition. They were concerned about giving legal recognition to homosexuality and de facto relationships through anti-discrimination legislation.

8

Some educational and religious bodies were concerned about the possible impact of such legislation on young people while others considered laws to protect the rights of the homosexuals a form of ’reverse discrimination' against the rights of the majority who chose not to accept non-heterosexuality.

"Nevertheless, there is general support for non-legislative measures to address the problems concerned. Respondents to the consultative document came out strongly in favour of public education programmes to promote equal opportunities for all, irrespective of a person's sexual orientation," Mr Suen said.

He said the Government would pursue the following programme of measures to eliminate misconception, enhance public understanding of issues relating to sexual orientation and improve support services:

* strengthening civic education to instil in the community proper respect for the rights of others, irrespective of one's sexual orientation;

* covering the topic of sexual orientation in health or sex education at school to enhance students' understanding of the issue;

* improving the quality of services for homosexuals by incorporating the subject of sexual orientation in the training of service providers such as social workers and clinical psychologists;

* identifying possible financial resources to facilitate homosexual groups to enhance self-support services for sexual minorities.

Reiterating the Government's strong commitment to the principle of equal opportunities for all, Mr Suen said the proposed measures were aimed at removing potential injustice or unfair restriction of an individual's rights for equal opportunities in different aspects of life on account of his or her family status and sexual orientation.

Noting that legislator Mr Lau Chin-shek intended to introduce the Equal Opportunities (Family Responsibility, Sexuality and Age) Bill into the Legislative Council, Mr Suen wished the views of the community would be fully reflected and thoroughly considered at the Bill's Committee stage.

"The Administration will endeavour to persuade Legislative Councillors to accept its proposals to tackle discrimination in the areas of family status and sexual orientation.

9

”As the public consultation on age discrimination is underway, we hope members of the Legislative Council will see the merit of allowing the public to express their views and await the outcome of the consultation exercise before they proceed further with the Bill," he said.

Meanwhile, Mr Suen pledged to get on with drafting of legislation to outlaw discrimination on the ground of family status; to step up public education on equal opportunities for all, focusing particularly on the areas of family status and sexual orientation; enlist employers’ support in promoting equal employment opportunities; and to identify possible financial resources for homosexual groups to facilitate their provision of services for sexual minorities.

A compendium comprising the written submissions for which the authors have given their consent to make public their views has been published.

End

ICAC Complaints Committee first annual report tabled ♦ ♦ ♦ ♦ ♦

The first annual report of the Independent Commission Against Corruption (ICAC) Complaints Committee for the year 1995 was presented to the Legislative Council today (Wednesday).

The report, covering the calendar year 1995, aims to keep the community informed of work of the Committee which monitors the handling of non-criminal complaints against the ICAC and its officers, reviews procedures and related issues which may give rise to complaints, and makes recommendations accordingly.

During the year under review, 24 complaints were received by the Committee, of which about 80 per cent were related to abuses of powers by ICAC officers and their conduct.

The committee also considered 20 investigation reports from ICAC. Four of the complaints were found to be partially substantiated.

An important and positive effect of an investigation into a complaint is that related ICAC internal procedures, guidelines and practices are carefully scrutinised. Changes and improvements are made as a result.

10

Ms Rosanna Wong was appointed Chairman of the Committee in November last year, following the resignation of Baroness Dunn.

Other members of the 1995 Committee included the Mr Denis Chang Khen-lee, Professor Edward Chen, Mr Allen Lee Peng-fei, Ms Anna Wu Hung-yuk, Dr Wilfred Chan Siu-yuen, and two ex-officio members, the Attorney General and the Commissioner for Administrative Complaints.

End

Research grants for tertiary institutions for 1996-97 ♦ * ♦ ♦ ♦

The Research Grants Council (RGC) today (Wednesday) announced its decisions on the allocation of $331 million in research grants in 1996-97 to the seven institutions funded by the University Grants Committee (UGC).

The seven UGC-funded institutions are: City University of Hong Kong, Hong Kong Baptist University, Lingnan College, the Chinese University of Hong Kong, the Hong Kong Polytechnic University, the Hong Kong University of Science and Technology, and the University of Hong Kong.

RGC considered 1,040 applications for a total of $931 million for academic research projects in a wide range of subject disciplines.

Each application was initially screened by one or more of four subject panels -Physical Sciences; Engineering; Biology and Medicine; and Humanities, Social Sciences and Business Studies - with the help of reports from external specialist assessors/referees.

The panels' recommendations were then considered by the full RGC meeting on June 19.

This year RGC again decided to allocate $66 million (20 per cent of the funds available) to the institutions directly to support projects costing less than $200,000.

Of the balance of $265 million, some $8 million was reserved for central allocation and $257 million was allocated for projects in response to competitive bids from the institutions.

11

In selecting projects for funding support, RGC has regard for the projects’ academic merit/integrity, their contribution to the academic development of the institutions and their relevance to the needs of the institutions and Hong Kong's overall economic and social development.

This was the sixth research grant allocation exercise undertaken by the RGC since its establishment in January 1991.

Announcing details of the grant allocation at a press conference, Chairman of RGC, Professor Ping K Ko, said: "This year, the Council was able to support, fully or partially, 464 projects compared with 454 last year.

"Among the projects supported this year, the RGC has funded 26 projects involving, to varying degrees, collaboration with academics in Chinese higher education institutions, and a further 56 involving collaboration with other overseas institutions.

"The quality of the bids was again very high. The top-ranked proposals, which made up 14 per cent of the total applications received, were of sufficient quality to secure funding in any competitive environment in other parts of the world," he said.

Professor Ko noted that the Council also made a conscious decision, despite the additional money available, to raise the quality threshold, as evidenced by the overall lower success rate of 45 per cent as compared with 51 per cent last year, and a larger number of projects, 328 as compared with 216 last year, which were rated as fundable, but unfunded.

"Apart from disbursing grants, the RGC is also responsible for monitoring the use of government funding for academic research. Among the 80 completed projects assessed in 1995-96, 14 were rated 'Excellent', 60 were rated 'Satisfactory' and six were rated 'Unsatisfactory'.

"The Council has noted the performance of the principal investigators concerned and will take this into account in considering future applications," he said.

As part of its ongoing programme to evaluate the research environment of UGC-funded institutions, RGC visited the Hong Kong Polytechnic University and Chinese University of Hong Kong in December 1995 and June 1996 respectively.

Professor Ko said: "From these and earlier visits, the Council is pleased to observe that the research culture in Hong Kong continues to grow and there are clear signs of developing research excellence."

12

The RGC Annual Report 1995 which gives a detailed report on the Council's operations and activities during the period January 1 to 31 December, 1995 ,was published by RGC today.

Professor Ko hoped that the report would adequately reflect the scale and nature of the effort involved on the part of RGC and the institutions during the year.

He also expressed his thanks to all RGC panel members for their assistance in making the work of the Council and its subject panels run smoothly and effectively.

Professor Ko also announced that RGC had reached agreement with the Germany Academic Exchange Service (DAAD) to launch a pilot Germany/Hong Kong Joint Research Scheme with effect from 1996-97.

The scheme will provide grants for a series of exchange visits aim at promoting co-operation in research between higher education institutions in Germany and Hong Kong. The total funding for the first year is about $1 million. About 10 to 15 projects may be supported in the first year.

It will operate along similar lines to the UK/Hong Kong Joint Research Scheme which RGC has been operating jointly with the British Council since 1991, Professor Ko said.

End

Governor visits Southern district

*****

The Governor, the Rt Hon Christopher Patten, was updated on the general situation in Southern district during his visit today (Wednesday).

He first went to the Aberdeen Caritas Community Centre where he was briefed on the services provided by the centre. He also watched new immigrant children attending induction classes and adults taking retraining courses.

After sampling some fishballs in a local speciality store, Mr Patten went for a walk in Lei Tung Market in Lei Tung Estate, Ap Lei Chau.

t

- 13 -

He also called on the home of an elderly woman in a singleton unit in Tung Hing Mansion, Lei Tung Estate. Most of the 520 singletons in the building were senior citizens.

The district visit ended with a tea reception in the Lei Tung Community Hall where Mr Patten met local district board members and community leaders.

Accompanying the Governor were the Director of Home Affairs, Mrs Shelley Lau, and the Southern District Officer, Mrs Erika Hui.

End

Three lots to let ♦ ♦ * * *

The Lands Department is inviting tenders for the short-term tenancy of three pieces of government land in Kowloon and in the New Territories.

The first lot located in Yuet Lun Street, Lai Chi Kok, has an area of about 3,010 square metres. It is intended for open storage, concrete production, asphalt production and cement handling.

The tenancy is for three years, renewable quarterly.

The second lot is situated at the junction of Kwai Chung Road and Tai Lin Pai Road in Kwai Chung. With an area of about 3,150 square metres, the lot is designated for use as a fee-paying public car park for the parking of motor vehicles, including goods vehicles but excluding container tractors and trailers.

The tenancy is for three years, renewable quarterly.

Covering an area of about 12,700 square metres, the third lot is located in Siu Lang Shui, Area 38. Tuen Mun. The lot is intended for use as general open storage of goods and containers, concrete production and storage of sand and aggregates.

The tenancy is for one year, renewable quarterly.

14

The closing date for submission of tenders is at noon on July 12.

Tender forms, tender notices and conditions may be obtained from the Lands Department, 14th floor, Murray Building, Garden Road, and the respective district lands offices of Kowloon, Kwai Tsing and Tuen Mun.

Tender plans can also be inspected at these offices.

End

Hong Kong Monetary Authority money market operations

*****

Time (hours) Cumulative change (Smillion)

$ million

Opening balance in the account 1,667 0930 +290

Closing balance in the account 1,952 Change attributable to : 1000 1100 +290 +290

Money market activity +290 1200 +290

LAF today -5 1500 1600 LAF rate 4.00% bid/6.00% offer TW1 124.5 *+0.0* 26.6.96 Hong Kong Monetary Authority EF bills EF notes +290 +290

Terms Yield Term Issue Coupon Price Yield

1 week 4.96 2 years 2805 6.30 100.00 6.39

1 month 5.02 3 years 3904 6.30 99.02 6.79

3 months 5.21 5 years 5106 7.23 99.64 7.45

6 months 5.45 7 years 7305 7.60 99.74 7.79

12 months 5.83 5 years M502 7.30 99.20 7.66

Total turnover of EF bills and notes - $21,698 million

Closed June 26, 1996

End

DAILY INFORMATION BULLETIN

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

Thursday, June 27,1996

Contents Page No,

Transcript of the Governor’s media session................................ 1

Transcript of Governor’s question-and-answer session...................... 1

Reports on the case of two VM girls made public........................... 4

Hong Kong's economic possibilities after 1997 ............................ 5

Special team to enhance private slope safety.............................. 7

Opening of construction waste recycling facility.......................... 8

Coroner’s Court to move to Eastern Law Courts............................. 9

Honorary award........................................................... 10

Provisional statistics of restaurant receipts and purchases.............. 10

Summary results of survey................................................ 13

Quarterly report on general household survey............................. 15

Fellowships and scholarships for overseas studies announced.............. 16

Job Matching Centre moves to Mong Kok.................................... 17

BN(O) application for 1982-1986 bom citizens to close soon............... 18

Hong Kong Monetary Authority money market operations..................... 19

1

Transcript of the Governor's media session

* ♦ ♦ ♦ ♦

Following is the transcript of the remarks made to reporters by the Governor, the Rt Hon Christopher Patten, after speaking at the Far Eastern Economic Review's "Countdown to 1997" Conference today (Thursday):

Question: You used to talk about putting up panes of glass etc, etc Why not put up some more panes of glass in different ways, for example by revealing the secession and sedition clauses on article 23 which China says will be the basis on drawing distinction between advocacy and expression?

Governor: The Legislative Council has asked us to prepare proposals on that issue. We're doing so at the moment. We'll then put those proposals to China and in due course I look forward to putting them to the Legislative Council.

Question: Mr Patten, because recently the UC members bought some Kwong On Bank share ... discussion in the society. Do you think the credibility of the UC members ...?

Governor: I can't comment on that case.

Question:... change of the Queen's Birthday to the end of June. What is the reason for that? Will that make the celebrations happier?

Governor: Good sense, and the flexibility of Her Majesty.

End

Transcript of Governor's question-and-answer session

* ♦ ♦ ♦ ♦

Following is the transcript of the Governor, the Rt Hon Christopher Patten's question-and-answer session after speaking at the Fair Eastern Economic Review's "Countdown to 1997" conference today (Thursday):

Question (Far Eastern Economic Review): Governor, I wonder what advice you would give to the whole host of businesses in Hong Kong, be it the airlines or Dow Jones and others in the information business who find themselves in a situation vis-?-vis China where their regulator is potentially their competitor as well? What advice to you have to those categories of businesses?

2

Governor: Well, the advice I give them must be advice for their commercial activities in Hong Kong rather than for their commercial activities in China.

And so far as Hong Kong is concerned, we’ve seen Hong Kong in the last couple of decades move from being a rather closed colonial society to being an open, international city and it's an international city in which the world does business. The world does business here on the basis of a level playing field and a playing field which we are attempting and will continue to attempt to make ever more competitive. That’s what we’ve been trying to do recently in the telecommunications sector, as I mentioned in my speech. It’s what we've been trying to do in the transport sector and it’s what we're trying to do elsewhere too.

The reason why so many companies establish their regional headquarters here, the reason why so many people invest so much money in Hong Kong, is because they do believe that it's a clean place to do business and a place in which they don't, for example, suffer unfair competition from a regulator. If Hong Kong were to lose that reputation, then it would be appallingly damaging for Hong Kong’s continuance as an international business centre, as a magnet for business from around the world. The best way in which Hong Kong can hold on to that position is, as I said in my speech, by vigorously asserting its autonomy, not least in economic matters and if it were to lose that it wouldn’t only lose the reputation with business for being an excellent place to base themselves, it would also lose the justification it has at present for having independent membership of so many international organisations. So standing up for Hong Kong’s autonomy in economic and trading matters is essential and so long as Hong Kong does that, it’ll be able to ensure that it continues to have a level playing field for business.

Question: Governor, one of the prerogatives that people have attending this meeting is that if they don't want to ask a question themselves, they can get through to the adjunct organisation and get someone else to ask it for them. Now this question was actually designed for the previous two speakers, Mr Martin Lee and Mr James Tien, but I don't see why it's not appropriate for you too. Unfortunately, time did not permit them to be asked the question.

The question is, what would be the most effective way of preserving Hong Kong's autonomy and rule of law post 1997 and are you confident that the west and in particular the US, will back Hong Kong and what can be done if China reneges on the 1984 Joint Declaration?

Governor: In two minutes! Well, let me answer as I'm sure James Tien did or would have done and Martin I’m sure would have been much more eloquent than I’m going to be. Martin's in the audience, James isn’t!

3

It is absolutely essential that people don't connive at the destruction of the things that make Hong Kong so special and make Hong Kong so successful. It's therefore imperative that people, as I mentioned earlier, stand up for that high degree of autonomy which Hong Kong was promised and stand up for the rule of law which is the spinal cord in Hong Kong's system. You don't have to explain what the rule of law means to people out there. Two-thirds to three-quarters of the people who live in Hong Kong, refugees or the family of refugees, are here because of the rule of law. They're here because of the difference between rules and laws on the one hand and the rule of law on the other.

Now those messages can come best and most effectively from those whom China asks to advise it. I think one of the sadnesses is that the understandable difficulties of comprehension, which I think some Chinese officials have when it comes to the nature of a free society, but they're not helped through those problems by the sort of advice that they sometimes get from Hong Kong. Advice about the importance of a politically neutral civil service, advice about the importance of an independent judiciary and the rule of law. Advice, for instance, that if you're serious about Hong Kong people running Hong Kong, what better way of putting muscle on the pledge than to have a step by step process of democratisation as we've been attempting under the Joint Declaration and the Basic Law.

Back in the early 80's when Britain and China first started to discuss the handover in 1997, Chinese officials originally wanted a rather vestigial, a rather skeleton treaty. A slim document which would just spell out the essentials. It was people in Hong Kong, leaders of the community in Hong Kong, leaders of the business community in Hong Kong who insisted that everything had to be spelt out. That they wanted written into that treaty the most detailed description of Hong Kong and the guarantees that were made for its future. Their voice was heard then and I think their voice could still be heard now whenever it happened to be raised.

What will the rest of the world do after 1997? I hope that it will watch Hong Kong continue to thrive and prosper but clearly for, for example, the United States there is a continuing interest, not just a commercial, an economic interest, there's a continuing interest in seeing Hong Kong survive as the sort of society which the United States should want to see right across Asia. Open markets, open minds, rule of law, political stability. I don't think that after 1997, the rest of the world is going to stop taking an interest in Hong Kong as a great international city. Quite the reverse.

4

But it’s Britain which has the principle and the greatest moral responsibility to Hong Kong. A responsibility which is the result of the treaty that we signed in 1984. That treaty was lodged at the United Nations and were it to be broken I’m sure that either party would wish to take up the matter internationally as vigorously as possible. It’s neither fair to China nor politically sensible for me or a British Minister to calibrate precisely what sort of action we would take if the Joint Declaration was breached. It would depend on what sort of breach, whether it was a large breach or a small breach, whether there was a pattern of breaches by China. I very much hope that that won’t happen but I know perfectly well that Britain is going to be held accountable for anything that might go wrong by many in the international community and that Britain will therefore be expected to make its own position clear should there be any breach. I repeat, I very much hope that there won’t be but on June 30, 1997, Britain's interest in Hong Kong doesn’t end as a commercial interest and as a moral interest as well.

End

Reports on the case of two VM girls made public *****

The Government today (Thursday) made public the reports of the enquiries into the circumstances of the two Vietnamese migrant (VM) girls who were separated from their parents following the riots in the Whitehead Detention Centre on May 10 to 11. The enquiries were carried out by the Correctional Services Department (CSD) on the instruction of the Governor.

Two separate reports were compiled. Both emphasise the difficulties faced by the staff in the Whitehead and High Island Detention centres on May 10 and 11 as well as in the immediate succeeding days.

In the case of the three-year-old girl, who was transferred to the High Island Detention Centre, the report concludes that her relatives were largely accountable for her prolonged separation from her parents.

Nonetheless, the report is critical of the unsympathetic handling of the case by CSD staff and recommends that procedures should be reviewed.

5

In the case of the five-year-old child transferred to Victoria Prison, the report concludes that her parents did report she was missing to the management of the Whitehead Detention Centre and recommends that disciplinary action should be taken against two CSD officers. It also recommends that procedures should be re-examined.

A government spokesman confirmed that all the recommendations made in the reports would be implemented as quickly as possible, including the instigation of disciplinary proceedings against the two officers concerned. "We very much regret what happened to these two little girls and we are determined to do everything possible to ensure that there are no repeat incidents," he said.

The spokesman expressed appreciation for the speed with which the reports were compiled.

"What is important is that we learn from the lessons of these two cases. The findings of the reports are fair and reasonable and CSD can be counted on to see through the recommendations made," he said.

End

Hong Kong’s economic possibilities after 1997 ♦ ♦ ♦ ♦ ♦

The Secretary for Financial Services, Mr Rafael Hui, said the Government would provide the necessary market infrastructure and the appropriate regulatory framework to fully exploit Hong Kong's potential and opportunities as a leading financial centre in Asia in the next century.

Speaking at Far Eastern Economic Review's third annual "Countdown to 1997" conference this (Thursday) morning, Mr Hui said the Government had been engaging on a number of important projects to enhance the efficiency and robustness of Hong Kong’s financial markets and the market infrastructure.

He said: "For example, we are implementing a new Real Time Gross Settlement (RTGS) for our interbank payment system to reduce settlement risks.

6

"The new system will provide real time Delivery Versus Payment capability for securities transactions and, with suitable linkages with real time payment system of other currencies, Payment Versus Payment capability for foreign exchange transactions."

Mr Hui said the Government was pursuing the proposal to set up a mortgage corporation in Hong Kong in order to enhance banking stability, monetary stability and debt market development.

"Also we are taking an active part in international and central banking forums to ensure that we are fully aware of the latest developments in these areas and to contribute to greater co-operation amongst the central banks in Asia," he added.

As for the economic possibilities of "one country, two systems", Mr Hui said this could only be assessed by looking at the economic fundamentals of Hong Kong and China.

"For those of us working in the financial services sector, the transfer of sovereignty on July 1, 1997 has no real significance because what we do, both in terms of infrastructure building and investment decisions, goes well beyond this date," he said.

He said the World Bank had predicted that China would become the biggest economy in early next century.

"Hong Kong, strategically located in this fastest growing region, will continue to prosper and excel in the next century as a leading financial centre in Asia.

"The opportunities are already here for people to exploit and develop," he said.

End

7

Special team to enhance private slope safety *****

The Buildings Department has set up a dedicated team to monitor private slope safety and to take actions against potentially dangerous ones.

The Slope Safety Section (SSS), comprising a Chief Building Surveyor and a team of 28 professional and technical staff, will implement statutory actions in respect of potentially dangerous private slopes arising from the Government’s accelerated Landslip Preventive Measures Programme.

”An annual average of 200 dangerous hillside orders (DHO) will be issued in the coming five years, a significant increase over an annual average of 40 orders in the past five years,” the Assistant Director of Buildings (Specialist), Mr Lau Yiu-wah, said today (Thursday).

’’The SSS will also actively participate in publicity campaigns on slope safety with a view to promoting public awareness on the importance of preventive measures through regular maintenance of slopes,” he said.

Property owners should keep a close watch at their private slopes and carry out the necessary maintenance and repair works to protect their own safety, Mr Lau reiterated.

"Maintenance responsibility for a slope rests with the property owner or the person who has an obligation under the lease to maintain the slope. Regular maintenance is the key to slope safety,” he said.

Mr Lau explained that DHO were served under the Buildings Ordinance requiring investigation, remedial and stabilisation work to be carried out on potentially dangerous private slopes.

Upon receipt of the order, property owners should appoint an authorised person (AP) to co-ordinate the investigation work, and, based on the findings, submit work proposals to the Building Authority to render the slope safe.

After approval of their proposals, owners should also appoint a registered building contractor (RC) to carry out the repair work under the supervision of the AP.

Mr Lau said the Buildings Department would be glad to offer assistance or advice to owners if they have difficulties in abiding by DHO.

8

They can either make direct enquiries to SSS on the 15th floor of Pioneer Centre in Mong Kok or by calling the department's 24-hour building safety hotline 2626 1234.

A list of the AP and RC is available for public inspection at the Buildings Department or various District Offices.

"Owners may also approach the building professional bodies, such as the Hong Kong Institution of Architects, Hong Kong Institute of Surveyors, or Hong Kong Institution of Engineers, for enlisting the professional services," Mr Lau said.

End

Opening of construction waste recycling facility

*****

A Construction Waste Recycling Facility, located at the South East New Territories (SENT) Landfill, is officially opened today (Thursday) by Legislative Councillor, Mr Ronald Arculli.

The $38-million facility, the first of its kind in Hong Kong, has been provided by the Environmental Protection Department to separate inert construction materials from mixed construction wastes requiring disposal at the landfill.

The facility can process up to 2,000 tonnes of mixed construction wastes a day. The materials which are recovered will be used within the landfill itself as daily cover, access road base, general filling and landscaping.

The setting up of the recycling facility is one of Government's initiatives to reduce waste and to prolong the life span of landfills.

In addition, the Government has recently completed a consultancy study on waste reduction and obtained feedback from interested parties on the findings and recommendations. Based on the feedback, the Government will formulate a waste reduction plan later this year.

Speaking at the opening ceremony, Mr Arculli said that the facility at SENT was a positive response from the Government to address the needs of the community and the construction industry.

9

He said the sorting plant provided the construction industry with a convenient facility for the reuse and recycling of construction waste and demonstrated the technical feasibility of such operations in Hong Kong.

"Even with the Construction Waste Recycling Facility in operation, the construction industry recognises that on-site segregation and sorting at source remain the most cost-effective approach and the construction industry will continue this long standing practice whenever it is feasible," he said.

Mr Arculli noted that it was through the co-operative efforts of the Government and the construction industry that the medium and long-term measures for construction waste management would be created to protect our environment.

Also present at today's opening ceremony were the Director of Environmental Protection, Mr Robert Law, and the Managing Director of Pacific Waste Management Limited, Mr Joe Zorn.

End

Coroner's Court to move to Eastern Law Courts

*****

The Coroner's Court will move to the 10th floor of Eastern Law Courts, 29 Tai On Street, Sai Wan Ho, from Monday (July 1), a spokesman for the Judiciary said today (Thursday). The Coroner's Court, now situated at the Wan Chai Law Courts, will be closed this Saturday for the relocation.

The move is to make room for the expansion of the District Court. It will also improve the facilities for the Coroner's Court, the spokesman said.

A new hotline 2886 6871 for the Coroner's Court will be operational from Monday.

End

10

Honorary award * * * * *

The following press release is embargoed until 0001 hours tomorrow (Friday, June 28). The media should not attempt to contact the recipient before that time:

The Queen has approved the award of MBE (Member of the Most Excellent Order of the British Empire) (Honorary) to Mr Ng Ying-neen, formerly Assistant Director of Urban Services.

Mr Ng joined the Government service in 1955 and was appointed a Health Inspector in the Urban Services Department in 1958. He was promoted Assistant Director of Municipal Services in 1993 and was an expert on all aspects of environmental health and hygiene. He retired at the end of last year.

End

Provisional statistics of restaurant receipts and purchases

*****

The value of total receipts for the restaurants sector in the first quarter of 1996. estimated at $13.6 billion, increased by 3% when compared with the same quarter in 1995, according to the provisional statistics released today (Thursday) by the Census and Statistics Department.

After discounting the effect of price changes over the period, total receipts went down slightly by 1% in volume terms.

The value of total purchases of restaurants, estimated at $4.9 billion, increased

by 5%.

Among the different types of restaurants, the total receipts of non-Chinese restaurants and fast food shops both rose by 12% in value. In volume terms, they increased by 7% and 5% respectively.

Meanwhile, the total receipts of miscellaneous eating and drinking places recorded an increase of 5% in value, but showed virtually no change in volume. Those of bars increased by 1% in value but decreased by 4% in volume. On the other hand, the total receipts of Chinese restaurants recorded a decrease of 2% in value and 5% in volume.

11

Comparing with the preceding quarter, and bearing in mind that the comparison is affected by seasonal factors, total receipts for the restaurants sector in the first quarter of 1996 increased by 2% in value and 1% 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 fourth quarter of 1995 and the provisional figures for the first quarter of 1996.

Table 2 shows the value and volume indices of total receipts by type of restaurant for the first quarter of 1995, the fourth quarter of 1995 and the first quarter of 1996, with the quarterly average from October 1989 to September 1990 taken as 100.

Also tabulated are comparisons of the results of the first quarter of 1996 with those of the fourth quarter of 1995 and the first quarter of 1995.

The Report on the Quarterly Survey of Restaurant Receipts and Purchases for the first quarter of 1996 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 Unit 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 2802 1258.

12

TABLE 1 :TOTAL RESTAURANT RECEIPTS AMO PURCHASES

4th Qtr 1995 (Revised figures) 1st Qtr 1996 (Provisional figures)

Total restaurant receipts (HKS million) 13 387.5 13 627.9

Total purchases by restaurants (HKS million) 4 851.2 4 902.7

TABLE 2 : VALUE ANO VOLUME INDICES OF RESTAURANT RECEIPTS FOR 1ST QUARTER. 4TH QUARTER 1995 AND 1ST QUARTER 1996

(Quarterly average of Oct. 89 - Sept. 90 = 100)

Index Number % Change

Type of Restaurant Type of Index 1st Quarter 1995 (Revised figures) 4th Quarter 1995 (Revised figures) 1st Quarter 1996 (Provisional figures) 1st Qtr 1996 compared with 4th Qtr 1995 1st Qtr 1996 compared with 1st Qtr 1995

(Point) (Point) (Point) (X) (X)

Chinese value 139.2 134.0 136.8 ♦2.1 -1.7

restaurants Volume 86.4 80.4 81.7 ♦1.7 -5.4

Non-Chinese Value 160.3 173.3 179.6 ♦3.6 ♦12.1

restaurants Volume 100.5 105.1 107.6 ♦2.4 ♦7.0

Fast food shops Value 218.0 248.9 243.7 -2.1 ♦11.8

Volume 146.4 160.3 154.1 •3.9 ♦5.2

Bars Value 263.5 261.8 266.3 ♦ 1.7 ♦1.1 '

Volume 157.2 149.8 151.0 ♦0.8 -3.9

Other eating and drinking places Value 240.7 253.2 253.0 •0.1 ♦5.1

Volume 148.7 150.6 148.6 •1.4 -0.1

All restaurant types Value 153.7 155.8 158.6 ♦ 1.8 ♦3.2

Volume 96.6 94.6 95.4 ♦0.9 -1.2

End

13

Summary results of survey ♦ ♦ ♦ ♦ ♦

The import/export and hotels (including boarding houses) industries registered considerable growth in 1994, with their total receipts (that is sales and other receipts) both increased by 12% when compared with 1993.

In the same period, the total receipts of the retail, wholesale and restaurants industries also went up moderately, by 8%, 5% and 5% respectively.

These are some of the major results of the 1994 Survey of Wholesale, Retail and Import/Export Trades, Restaurants and Hotels released today (Thursday) by the Census and Statistics Department. The Survey was conducted from May 1995 to early 1996.

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

In 1994, there were 101 900 import/export establishments in operation, an increase of 2% over 1993. The total receipts generated by these establishments amounted to $1 965 billion, 12% higher than in 1993.

Total operating expenditure - comprising compensation of employees, operating expenses and value of purchases of goods for sale - incurred by import/export establishments accounted for 95% of the total receipts. Net of the expenditure, the gross surplus amounted to 5% of the total receipts, which was 0.2 percentage point lower than the corresponding figure for 1993.

The value added of these establishments, which is a measure of the industry’s contribution to Hong Kong’s Gross Domestic Product, grew considerably by 14% from $156 billion in 1993 to $179 billion in 1994. It constituted 9.1% of the total receipts, a marginal increase of 0.2 percentage point over 1993.

In the hotels industry, there were 1 290 hotels and boarding houses in operation in 1994, a decrease of 12% compared with 1993. Despite a decrease in the number of establishments, the total receipts generated amounted to $19.8 billion in 1994, 12% higher than in 1993.

The total operating expenditure of the hotels industry accounted for 77.3% of the total receipts, which was one percentage point higher than the figure for 1993. The gross surplus made up the remaining 22.7%.

14

The value added of the hotels industry was $11.7 billion in 1994, an increase of 12% over 1993. It accounted for 58.8% of the total receipts, which was close to the figure of 59% for 1993.

In the retail industry, there were some 58,400 establishments in operation in 1994, an increase of 1% over 1993. The total receipts generated by these establishments amounted to $256 billion, 8% higher than that for 1993.

The total operating expenditure of the retail industry accounted for 93.2% of the total receipts, which was 0.6 percentage point lower than the corresponding figure for 1993. Net of the expenditure, the gross surplus amounted to the remaining 6.8%.

The value added of retail establishments was $35.9 billion in 1994, an increase of 16% over 1993. It accounted for 14% of the total receipts, which was one percentage point higher than that for 1993.

In the wholesale industry, there were some 21 700 establishments in operation in 1994, 7% lower than in 1993. However, these establishments generated $179 billion of total receipts in 1994, an increase of 5% over 1993.

The gross surplus and total operating expenditure of the wholesale establishments accounted for 3.9% and 96.1% of the total receipts respectively. These percentage shares were broadly similar to those for 1993.

On the other hand, the value added of these establishments increased by 4% to $14.6 billion in 1994. It accounted for 8.2% of the total receipts, which was also similar to that for 1993.

In the restaurants industry, there were some 10 300 restaurants in operation in 1994, a decrease of 5% over 1993. These establishments generated $63 billion of total receipts, an increase of 5% over 1993.

The gross surplus and total operating expenditure of the restaurants industry accounted for 7.6% and 92.4% of the total receipts respectively. The percentage share of the former was 0.9 percentage point higher than the corresponding figure of 6.7% for 1993.

The value added of the restaurants industry increased by 7% to $24.5 billion in 1994. It accounted for 38.8% of the total receipts, which was also 0.9 percentage point higher than the percentage share of 37.9% for 1993.

15

More detailed results together with the background and methodology of the survey will be given in a full report to be published in around August 1996.

It will be on sale at the Government Publications Centre of the Information Services Department, Low Block, ground floor, Queensway Government Offices, 66 Queensway, Hong Kong; and the Publications Unit of the Census and Statistics Department, 19th floor, Wanchai Tower, 12 Harbour Road, Hong Kong.

Enquiries regarding these survey results may be directed to the Wholesale and Retail Trade Statistics Section of the Census and Statistics Department on 2802 1248.

End

Quarterly report on general household survey * * ♦ ♦ *

The Quarterly Report on General Household Survey for January-March 1996 is now available for sale.

The bilingual report contains statistics on employment, unemployment and underemployment for the first quarter of 1996.

It also contains detailed analysis of the characteristics of members of the labour force, including their age, sex, educational attainment, activity status, occupation, industry, hours worked per week and monthly employment earnings. Data on reasons for unemployment and duration of unemployment for the unemployed are also presented.

Copies of the report at $53 each can be obtained from the Government Publications Centre. Queensway Government Offices, Low Block, ground floor, 66 Queensway, Hong Kong.

The General Household Survey is a continued exercise conducted by the Census and Statistics Department every quarter with the aim to collect information on the labour force, unemployment and underemployment. In addition, special enquiries on various selected social topics are also included in its supplementary part.

For the coming survey to be conducted between July and September, an official letter will be sent to the sampled households prior to each survey month to explain the purpose of the Survey and to seek their voluntary co-operation.

16

Officers of the department will visit the households concerned to collect the required information. When visiting households, they carry with them a government identity card and an official certificate for conducting the Survey. They will make such documents available for inspection by households.

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.

End

Fellowships and scholarships for overseas studies announced ♦ * * * *

The Sir Edward Youde Memorial Fund Council today (Thursday) announced that its fellowships and scholarships for overseas studies for the academic year 1997-98 will be open for application from June 28.

The fellowships and scholarships are aimed at encouraging the best students to pursue further education in reputable institutions overseas.

Successful candidates for the awards are expected to have a strong sense of commitment to Hong Kong and be ready to contribute significantly to the community upon return from their overseas studies. They will be required to work in the territory for at least three years upon graduation.

The fellowships are for studies leading to postgraduate degrees either by research or by coursework, the scholarships are for undergraduate studies leading to first degrees.

The applicants will be responsible for fulfilling all application procedures and admission requirements of the academic institutions of their choice.

The value of fellowship is about $218,000 per year for up to three years for doctoral degree or two years for master degree; the value of scholarship is about $200,000 per year for up to three years.

17

Application forms and information notes are available at the following addresses:

(a) Student Financial Assistance Agency ninth floor, National Mutual Centre 151 Gloucester Road, Wan Chai, Hong Kong

(b) Education Department Careers and Guidance Services Section Room 206, Mong Kok Government Offices 30 Luen Wan Street, Mong Kok, Kowloon

Enquiries can be made on 2802 1638 or 2802 1639.

The closing date for all applications is September 27. Short-listed applicants will be required to attend the initial interview in Hong Kong to be conducted in January 1997. Suitable applicants will be requested to attend the final interview in February/March 1997.

End

Job Matching Centre moves to Mong Kok *****

The Labour Department’s Job Matching Centre (JMC) will move from Causeway Bay to Mong Kok next week.

To facilitate the removal, the Centre will be temporarily closed from 9 am to noon on Saturday (June 29).

Normal services will be resumed on Monday (July 1) at the new office in Room 2410 - 2415, Park-In Commercial Centre, 56 Dundas Street, Mong Kok.

JMC processes applications under the Supplementary Labour Scheme. Local job seekers interested in vacancies registered under the scheme can approach the Centre for free placement service. Public enquiries about JMC's service can be made on 2576 1616 during office hours.

End

18

BN(O) application for 1982-1986 bom citizens to close soon *****

The final date for Hong Kong British Dependent Territories citizens (BDTCs) bom between 1982 and 1986 to apply for British National (Overseas) (BN(O)) passports will be this Saturday (June 29), a government spokesperson reminded the public today (Thursday).

Hong Kong BDTCs (such as persons bom, naturalised or registered in the territory) must obtain a BN(O) passport if they wish to continue to travel on British passports beyond 1997.

As specified in the Second Schedule to the Hong Kong (British Nationality) Order 1986, applications for BN(O) passports must be submitted on or before the final dates relevant to their age groups.

Parents or legal guardians of eligible children bom between 1982 and 1986 must submit their applications on or before June 29. They should apply for a Hong Kong permanent identity card on behalf of the children at the same time.

Further publicity will be made in respect of BDTCs bom in other years (that is between 1987 and June 30, 1997) so that they may submit their applications by phases according to their age groups. They are free to submit their applications now.

Persons who do not comply with the relevant cut-off dates will not be able to travel on British passports beyond 1997. An application made after the final date will only be accepted if the applicant can show that there are special circumstances which justify his late application.

A BN(O) late registration appeals advisory committee has been established to advise the Governor on those late applications which have been rejected by the Immigration Department.

The spokesperson emphasised that those who already had a BN(O) passport, either the conventional hard-cover type or the burgundy red machine readable type, need not apply again.

Applications for BN(O) passports may be submitted to the Immigration Department either by post or in person.

Applicants may also deposit their applications into the drop-in boxes at the Immigration Headquarters or at any immigration branch offices throughout the territory. Application forms are available at all immigration offices and district offices. Hong Kong BDTCs living, working or studying abroad, are also required to observe the cut-off dates if they want to apply for a BN(O) passport. However, they are not required to return to Hong Kong for their applications.

19

They should submit their applications to the nearest British passport issuing office either by post or in person. The required overseas application forms can be obtained at those offices or the Hong Kong Immigration Department.

For more information, member of the public may telephone 2824 1177 (English) or 2824 1717 (Chinese).

End

Hong Kong Monetary Authority money market operations

*****

$ million Time (hours) Cumulative change (Smillion)

Opening balance in the account 1,952 0930 +5

Closing balance in the account 1,732 1000 +5

Change attributable to : 1100 +5

Money market activity -10 1200 -10

LAF today -210 1500 -10

1600 -10

LAF rate 4.00% bid/6.00% offer TWI 124.5 *+0.0* 27.6.96

Hong Kong Monetary Authority

EF bills EF notes

Terms Yield Term Issue Coupon Price Yield

1 week 5.16 2 years 2805 6.30 99.94 6.43

1 month 5.10 3 years 3904 6.30 98.93 6.83

3 months 5.26 5 years 5106 7.23 99.50 7.49

6 months 5.50 7 years 7305 7.60 99.60 7.82

12 months 5.86 5 years M502 7.30 99.24 7.64

Total turnover of EF bills and notes - $13,595 million

Closed June 27, 1996

End

DAILY INFORMATION BULLETIN

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

SUPPLEMENT

Wednesday, June 27, 1996

Contents Page No.

LcgislatiYe..CQUfl.cil.mceting;

CS's North America visit................................................. 1

CS's question-and-answer session in LegCo................................ 3

Births and Deaths Registration Ordinance................................. 6

Foreign Marriage Ordinance............................................... 7

Legitimacy Ordinance..................................................... g

Anti-drugs co-operation to be extended to Thailand....................... 8

Drug Trafficking (Recovery of Proceeds) Order............................ 9

Dangerous Drugs (Amendment) Regulation.................................... 1 q

Legal Services Legislation Bill 1996................................. 11

/Administration of

Contents

Page No.

Administration of Justice (Miscellaneous Provisions) Bill............. 19

Social Workers Registration Bill...................................... 21

Supplementary Appropriation (1995-96) Bill............................ 25

Costs in Criminal Cases Bill.......................................... 26

Mental Health (Amendment) Bill: second reading........................ 28

Mental Health (Amendment) Bill: committee stage....................... 29

Criminal Procedure (Amendment) Bill: committee stage.................. 30

Dutiable Commodities (Amendment) Bill: second reading................. 30

Dutiable Commodities (Amendment) Bill: committee stage............ 31

Public interest immunity certificates................................. 32

Control on use of pagers by persons below 18.......................... 33

Right of abode issue under discussion with Chinese side............... 34

KCRC consultancy works................................................ 36

Govt's stance on KCRC after-tax profits explained..................... 39

Publicity expenses for housing policies explained..................... 40

Western District development plan..................................... 42

/Legality of

Contents

Rage No.

Legality of vehicles fitted with crashproof headframes.................. 43

Proposal to set up mortgage corporation................................. 44

Widening of Tai Tam Road planned........................................ 46

Status of offenders detained under HMP.................................. 47

Amusement games centres inspection...................................... 48

Emergency vehicles access to crowded small house areas.................. 50

Measures to monitor air quality inside road tunnels................ 51

Measures to tackle addicts injecting drugs in staircases................ 52

Monitoring of textbooks quality......................................... 54

Admission to engineering faculties...................................... 56

Penalty for certain sexual offences under review........................ 57

HK/Singapore civil servants exchange programme proposal................. 58

Protection of Wages on Insolvency Fund payment applications............. 59

1

CS's North America visit

*****

Following is the speech by the Chief Secretary, the Hon Anson Chan, on her recent visit to North America in the Legislative Council today (Wednesday):

Mr President,

My recent visit to the United States covered seven cities. I visited Seattle, San Francisco and Boston before launching a major Hong Kong promotion in New York, Dallas and Los Angeles. My last stop was Washington D C.

The objectives of the visit were firstly, to promote business ties between Hong Kong and the USA; secondly, to enhance cultural links; thirdly, to increase understanding of and discuss concerns about, the transitional arrangements and recent developments in Hong Kong; and fourthly, to follow up on the Governor's earlier visit to Washington to lobby for unconditional MFN extension for China.

In Seattle, San Francisco and Boston, 1 met with Government leaders, local businessmen and academics. Specifically I spoke at Stanford University, Harvard University and MIT on Hong Kong's transition.

New York was the first leg of the Hong Kong-USA '96 promotion. This was my fourth major overseas promotion. Since 1993, similar promotions have been organised in Europe, USA and Japan.

The key element in the promotion was the business conference held in New York, Dallas and Los Angeles organised with customary efficiency by the Hong Kong Trade Development Council. Entitled "Hong Kong - Strategic Business Partner for the Pacific Century", the conference featured top Hong Kong businessmen and senior government officials as speakers. 1 also delivered a keynote speech at each of the three conference luncheons. In addition, there were workshops on financial services, high-tech manufacturing and tourism in Hong Kong.

Other promotion-related activities included gala dinners, receptions, fashion shows featuring the work of Hong Kong designers, film festivals, concerts by the Urban Council's Hong Kong Chinese Orchestra, the Hong Kong Tourist Association's "Hong Kong Wonders Never Cease" promotion and a HK-TVB variety show featuring some of Hong Kong's top singers at the Universal City Walk in Hollywood, which was broadcast in Hong Kong and through cable network in the United States. I also spoke to academics at the University of California in Los Angeles.

2

Concluding my US tour, I visited Washington DC where I held meetings with senior officials of the US Administration including Secretary of State, Warren Christopher, Secretary for the Treasury, Robert Rubin and the National Security Adviser, Anthony Lake. I also met with key members of both the House and the Senate including the Chairman of the Senate Finance Committee, William Roth, Chairman of the House Asia and Pacific Subcommittee, Doug Bereuter and the newly elected Senate Majority Leader, Trent Lott. My purpose was to emphasise the importance to Hong Kong of unconditional MFN renewal for China, to discuss the prospects of permanent MFN, to stress our commitment to the protection of intellectual property rights and to explain how we were preparing for the transition and some of the challenges ahead.

Over a period of three weeks, I delivered 26 speeches and held numerous meetings with US government officials, local government leaders, politicians, influential members of think tanks, chambers of commerce, business associations and community organisations which have a particular interest in Hong Kong. On the media side, I held six press conferences, and gave eight media interviews and met with seven editorial boards. We also published a special Hong Kong supplement in each of the three cities covered by the promotion. All our promotion events received extensive coverage in the media and were very well attended.

The visit was well worthwhile and I believe met all of the objectives which I referred to earlier. The active participation of members from both the public and private sectors in the promotion enabled us to make a far greater impact on our American audiences than either party could achieve on its own. Together we were able to underline Hong Kong's strategic role in the Asia Pacific region, our economic strength and generally to instil confidence in continued investments in Hong Kong after 1997.

It is clear that there is continuing strong interest in Hong Kong and considerable support for everything that we are doing to secure our future. I stressed the USA's increasing stakes in Hong Kong and therefore the importance to the US of a smooth transition. All my contacts made it clear that they look forward to full and faithful implementation of the Joint Declaration and Basic Law. Inevitably I was asked to respond to specific concerns over the transition, including the threat of a provisional legislature, protection of human rights, press freedom, etc. I dealt frankly with these concerns. At the same time I drew attention to how much had been achieved in the past twelve years since the signing of the Joint Declaration to turn the promises of a "high degree of autonomy" and " Hong Kong people ruling Hong Kong" into a reality. On the whole, I was able to project a reasonably positive picture of Hong Kong's future whilst acknowledging that there were still difficulties which remain to be resolved to ensure that the key elements of Hong Kong's success remain intact after 1997.

End

3

CS’s question-and-answer session in LegCo ♦ ♦ ♦ ♦ ♦

Following is a transcript of the Chief Secretary’s question-and-answer session on her recent visit to North America in the Legislative Council today (Wednesday):

Dr Leong Che-hung: Thank you Mr President. There is no doubt that the Chief Secretary has gone through a very tiring and yet successful trip on behalf of Hong Kong and I am sure all members of this Council would join me to thank her for doing this for us.

In her address, especially in the last paragraph, the Chief Secretary mentioned that she dealt frankly on issues concerning the threat of a Provisional Legislature, protection of human rights and press freedom. I wonder whether the CS could expand on this?

CS: Mr President, it is perhaps not surprising to this Council that the main concern raised with me during my tour of the United States was the threat of a Provisional Legislature to replace the current Legislature. I took the opportunity to reiterate the Government’s very clear stance on this and I will repeat this now.

The Government's position on the Provisional Legislature is that we remain opposed to the establishment of a Provisional Legislature. Wc consider a provisional legislature to be both unnecessary and unjustified. The current Legislature was elected in open and fair elections in September of last year. We had a record turnout of voters at that election. The current Legislature clearly enjoys the support of the entire community and in terms of continuity and confidence within the community, it is clearly desirable for the current Legislature to transit 1997 and for members to be able to serve our their full four year term.

But perhaps not surprising either, the question was put to me that many people have now asserted that it is inevitable that the Provisional Legislature would be established and what was the Government’s stance on this. I took the opportunity again to restate that if the Chinese insist on proceeding - and I said at the same time that we were hoping very much to continue to persuade the Chinese not to proceed with a Provisional Legislature - but if they were determined to do so, then I think it is for the Chinese side to explain to the community in Hong Kong and to the international community exactly how the Provisional Legislature would conform with the Basic Law and the Joint Declaration and, more importantly, how it would implement the principle of Hong Kong people ruling Hong Kong.

4

I also made it clear at the same time that this Government is unable to provide any assistance for the establishment of a Provisional Legislature, nor would this Government do anything to undermine the functioning and credibility of the existing Legislature. In this context we welcomed Mr Qian Qichen’s statement that on this side of 1997 only the Governor, the Privy Council and the current Legislature will exercise power and that there will not be two power centres.

On the question of protection of human rights and press freedom, I went through, in a fair amount of detail, what the Administration has done to ensure that human rights, including press freedom, will be protected after 1997. But at the same time, insofar as press freedom is concerned, I also pointed out that whilst the Government will do its share and remain committed to ensuring that nothing remains on our Statute Book that in any way inhibits press freedom, and that all our laws are fully consistent with the Bill of Rights Ordinance, I did at the same time point out that of course practitioners in the media, including journalists, reporters and publishers, also have a role to play in defending and upholding the integrity of their profession.

Mr Martin Lee: Mr President, I see that the Chief Secretary told us that she met with various people in Washington, instead of met various people in Washington. Is it the intention of our Government now, to introduce some Americanism into this Chamber to make Hong Kong really an international city?

The President: I am not sure American is allowed in this Chamber. Only Cantonese and English can be used verbally - orally.

CS: Mr President, I am not quite sure that the question really requires an answer. Nor am I sure that met with is in any way very Americanised.

Dr Yeung Sum (in Chinese): Mr President, the Chief Secretary, today and before, has mentioned the stance of the Hong Kong towards the Provisional Legislature. However, myself and many Hong Kong people are still concerned about the following. First of all, Hong Kong Government does not support the Provisional Legislature and will give it no assistance. However, in foreign countries you say that you wish that if it is to be set up it will be widely represented. 1 would like to know, does it signify a softening in the stance of the Hong Kong Government towards the Provisional Legislature because of political reality?

5

CS: Mr President, could I make it clear that the Government's position on the Provisional Legislature has not changed and remains as I have state in my reply to an earlier supplementary question. Of course, when I was in the States the question was put to me: If the Chinese insist on proceeding with a Provisional Legislature what will be the concerns? And I think I am reflecting the concerns of the people of Hong Kong and indeed the concerns of the international investing public, in saying that clearly one of the concerns would be to see in what way, if the Provisional Legislature is established, it would actually implement the principle of Hong Kong people ruling Hong Kong and in what way it would conform with the requirements of the Basic Law.

Mr Howard Young: Mr President, judging from the Chief Secretary's reply, I think there is still a need to eradicate some confusion over reports and headlines such as 'The Chinese Are Disbanding the Current LegCo'. I had better ask my question in Cantonese, Mr President.

Mr Howard Young (in Chinese): Mr President, during the visit, I would like to know whether the CS has taken the opportunity to clarify the confusion over the present Legislature and the Provisional Legislature with regard to the constitutional stance. Because if we are to say that the present Legislature shouldstraddle 1997, there is going to be a constitutional question because unless the Letters Patent and Royal Instructions can also straddle 1997 then you can't say the present Legislature can straddle 1997. And if you arc saying that the present lawmakers can straddle 1997, then it would be more reasonable and it could also avoid and steer clear of certain constitutional confusion. I would like to know whether you have taken the opportunity during your visit to clarify this point?

CS: Mr President, the constitutional position of the current Legislative Council is abundantly clear and I do not think requires any further clarification. On the other hand, if questions are asked about the Provisional Legislature, then I think that is really for the Chinese side to establish its constitutional position. And I repeat what I said in my two replies to the supplementary questions put to me just now.

Mr Lee Wing-tat (in Chinese): Mr President, in the US the CS mentioned the Provisional Legislature and that caused confusion in the minds of Hong Kong people because in Hong Kong she said that she was clearly opposed to the Provisional Legislature. However, in the US, the Chief Secretary said that if it was to be set up then it should be widely represented. I would like to know, when she said that, did she mean that even if a Provisional Legislature is to be appointed and if it is widely appointed, do you take it that it is widely representing Hon g Kong's views and do you think that a Legislature that is elected by 1.5 million people in September last year could be replaced by such a Provisional Legislature?

6

CS: Mr President, could I make clear that the question of "If there is a Provisional Legislature", is not a question that I have, as it were, raised on my own. It was a question that was put to me in my numerous contacts with people in the United States and I was attempting to answer that question.

Miss Emily Lau (in Chinese): Mr President, recently, Mr Lu Ping, the Director of the Hong Kong and Macau Affairs Office, has given two interviews to US TV channels and it gives people the impression that Hong Kong people are very much concerned about Hong Kong's future. I would like to ask the CS, during your two-week visit in the US did you see that within the American Administration or within the American Community there are a lot of people who are worried about Hong Kong's future, especially with regard to corruption, freedom and the rule of law and so on and so forth?

CS: Mr President, I did indeed encounter the concerns that the Honourable Emily Lau raised just now. I think the chief concern centres broadly round China's commitment to implementing the high degree of autonomy and Hong Kong people ruling Hong Kong after 1997. And specifically, the concerns revolve around continuity in our Legislature, China's commitment protecting human rights, press freedom, etc.

End

Births and Deaths Registration Ordinance ♦ ♦ ♦ ♦ *

Following is the speech by the Secretary for Security, Mr Peter Lai, in moving the motion on the Births and Deaths Registration Ordinance in Legislative Council today (Wednesday):

Mr President,

I move the first motion standing in my name on the Order Paper. This motion proposes increases in the fees specified in the Births and Deaths Registration Ordinance for the registration of births and deaths and related matters.

A recent review of fees and charges conducted by the Immigration Department indicates that there are three areas in the services delivered by the Department for which there is under-recovery of cost. These are: registration of persons services, where the average shortfall is about 12%; registration of births, deaths and marriages, where the average shortfall is about 19%; and issue of travel documents, where the average shortfall is about 43%.

7

It is the Government's policy that fees and charges should in general be set at levels sufficient to recover the full cost of providing the services to which they relate. However, in order to minimise the impact which such increases may have on the general public, fee increases in the order of 9% to 13% only are proposed for most services in this revision exercise. Details of all the fee increases were already tabled in this Council on 5 June 1996. The current and the two subsequent motions are concerned with fees for the registration of births, deaths and marriages.

The fees payable under the Births and Deaths Registration Ordinance were last revised in July 1995. We propose to revise them by 9%. In dollar terms, the actual increases range from $5 to $50. If approved, the new fees will be effective from 15 July this year.

Mr President, I beg to move.

End

Foreign Marriage Ordinance *****

Following is the speech by the Secretary for Security , Mr Peter Lai, in moving the motion on the Foreign Marriage Ordinance in Legislative Council today (Wednesday):

Mr President,

I move the second motion standing in my name on the Order Paper. It seeks to increase the fees specified in the Foreign Marriage Ordinance.

The Foreign Marriage Ordinance provides a means whereby a Commonwealth citizen can give a notice of marriage in Hong Kong even though the marriage is to take place at a British Embassy abroad. Fees are payable for the issue of a certificate by the Registrar of Marriages. The fees were last revised in July 1995. It is now proposed to increase them from $55 to $60 for a certificate by the Registrar of Marriages given under Section 5, and from $540 to $590 for a Governor's licence given under Section 6 of this Ordinance.

Mr President, I beg to move.

End

8

Legitimacy Ordinance ♦ * * ♦ ♦

Following is the speech by the Secretary for Security, Mr Peter Lai, in moving the motion on the Legitimacy Ordinance in Legislative Council today (Wednesday):

Mr President,

I move the third motion standing in my name on the Order Paper. It seeks to increase the fees specified in the Schedule to the Legitimacy Ordinance.

The Legitimacy Ordinance provides for the re-registration of the birth of legitimated persons. Fees collected relate to the re-registration of births and the issue of certified copies of entries of the birth of legitimated persons. The fees were last revised in July 1995. It is now proposed to revise the fees from $270 to $295 for reregistration of births, and from $110 to $120 for a certified copy of an entry of the birth in the register of births.

Mr President, I beg to move.

End

Anti-drugs co-operation to be extended to Thailand

*****

An amendment order seeking to extend the bilateral co-operation in the suppression of drug trafficking to the Kingdom of Thailand has been approved by the Legislative Council today (Wednesday).

Details are contained in the Drug Trafficking (Recovery of Proceeds) (Designated Countries & Territories)(Amendment) Order 1996.

Moving a resolution to seek the Council's approval of the Order, the Secretary for Security, Mr Peter Lai, said the amendment order would add the Kingdom of Thailand to the list of countries and territories designated under the Drug Trafficking (Recovery of Proceeds) Ordinance, so as to enable their confiscation and related orders to be enforced in Hong Kong, and to allow assistance to be provided in relation to their drug trafficking investigations.

9

"Drug trafficking is an international problem and co-operation among governments in confiscating the proceeds of drug trafficking acts as a major deterrent," Mr Lai said.

"Hong Kong has already concluded agreements and arrangements with 11 other jurisdictions.

"As a result of this bilateral co-operation, about $208 million worth of assets related to drug trafficking have been seized in Hong Kong."

The Administration has recently initialled a similar agreement with the Kingdom of Thailand concerning mutual assistance in the suppression of drug trafficking. Hong Kong needs to designate the country under the ordinance before the signing of the agreement.

Hong Kong has so far concluded agreements with Australia, Canada, Malaysia and the United States, and equivalent arrangements with the United Kingdom and a number of its dependent territories.

End

Drug Trafficking (Recovery of Proceeds) Order

*****

Following is the speech by the Secretary for Security, Mr Peter Lai, in moving the amendments to the Drug Trafficking (Recovery of Proceeds)(Designated Countries and Territories) (Amendment) Order 1996 in the Legislative Council today (Wednesday):

Mr President,

I move the motion standing in my name on the Order Paper.

The Drug Trafficking (Recovery of Proceeds) Ordinance has strengthened our ability to combat domestic and international drug trafficking, by providing us with the means to trace, restrain and confiscate the proceeds of drug trafficking. Section 28(1) of the Ordinance provides for the Governor in Council, with the approval of the Legislative Council, to designate countries and territories outside Hong Kong, so as to enable their confiscation and related orders to be enforced here; it also allows assistance to be provided in relation to their drug trafficking investigations.

10

Drug trafficking is an international problem and co-operation among governments in confiscating the proceeds of drug trafficking acts as a major deterrent. Hong Kong has already concluded agreements and arrangements with eleven other jurisdictions, which have all been designated under the Drug Trafficking (Recovery of Proceeds) Ordinance. As a result of such bilateral co-operation, about $208 million worth of assets related to drug trafficking have been seized in Hong Kong.

We have recently initialled a similar agreement with the Kingdom of Thailand, concerning mutual assistance in the suppression of drug trafficking. The agreement will come into effect when it is signed by both Governments after they have notified each other that all the requirements for its entry into force have been completed. One of these requirements for Hong Kong is the designation of the Kingdom of Thailand under the Ordinance.

This resolution seeks this Council's approval of the Drug Trafficking (Recovery of Proceeds) (Designated Countries and Territories) (Amendment) Order 1996, made by the Governor in Council on 4 June 1996. The Amendment Order will add the Kingdom of Thailand to the list of designated territories, and so apply the provisions of the Ordinance to confiscation orders made by the courts in Thailand. Confiscation orders made by the Hong Kong courts will similarly be enforceable in Thailand on a reciprocal basis.

Mr President, 1 beg to move.

End

Dangerous Drugs (Amendment) Regulation *****

Following is the speech by the Secretary for Security, Mr Peter Lai. in moving the amendments to the Dangerous Drugs (Amendment) Regulation 1996 in the Legislative Council today (Wednesday):

Mr President,

I move the motion standing in my name on the Order Paper. The Dangerous Drugs Regulations set out, inter alias, record-keeping requirements to be adhered to by an authorised person when supplying a dangerous drug. This is to ensure that full particulars of the acquisition and supply of dangerous drugs are recorded for monitoring purpose. As part of the Administration’s efforts to tackle the problem of illicit sale of dangerous drugs, we have proposed to tighten the record-keeping requirements through the Dangerous Drugs (Amendment) Regulation 1996 which was tabled in this Council on 22 May 1996. One of the tightening measures proposed is to require the entering of the identity card number of the patient to whom dangerous drugs are supplied.

11

The proposal to include the patient's identity card number in the register is intended to provide a more reliable means of identifying the true identity of the patient to whom the dangerous drugs have been supplied, so as to facilitate investigations and law enforcement actions. It also serves to deter the patients from purposely providing false particulars and therefore offers better protection to doctors. It represents an improvement over the present arrangements whereby only the name and the address of the patient are required to be recorded.

However, the House Committee has expressed concern that there may be emergency situations or exceptional circumstances which make it impracticable for the authorised person to comply with the Regulation through no fault of his own. To address this concern, we propose to add a statutory defence provision to the Dangerous Drugs (Amendment) Regulation 1996, to the effect that it will be a defence for an authorised person to satisfy the court that he has done everything reasonable and has exercised due diligence in the circumstances to comply with the law. We would also assure Members that the Government does not initiate prosecutions lightly. Not every technical breach of the record-keeping requirements will automatically result in a prosecution. The situation where innocent authorised persons are prosecuted for minor breaches through no fault of their own should not occur.

The motion before Members seeks this Council's approval by resolution of the proposed amendment to the Dangerous Drugs (Amendment) Regulation 1996. With the proposed amendment, authorised persons are accorded better protection in complying with the record-keeping requirements introduced in the Amendment Regulation.

Mr President, I beg to move.

End

Legal Services Legislation Bill 1996 *****

Following is the speech by the Attorney General, the Hon Jeremy Mathews, in moving the second reading of the Legal Services Legislation (Miscellaneous Amendments) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

I move that the Legal Services Legislation (Miscellaneous Amendments) Bill 1996 be read a second time.

12

The main purpose of this Bill is to implement most of the proposals in the Report on Legal Services that involve legislative amendments. Before describing the proposed amendments, I would like to sketch in for Members the background to this Bill.

The background

In January 1993, the Law Society published a paper on "The Future of the Legal Profession”. The paper was very critical of the existing system, (I quote) -

”We believe that the rules which regulate the two branches of the profession and the relationships between them, and between them and their clients in general, increase cost, inhibit access to advice and representation and, frequently, protract proceedings. These outcomes arise, on average, without commensurate benefits in the quality of the product delivered. The current system has many in-built inefficiencies which would be avoided by alternative approaches.”

The main proposal in the Law Society’s paper was that there should be a unified legal profession.

A year after the Law Society’s paper was published, the Bar Association published its Position Paper, which rejected the Law Society's proposals. We therefore had conflicting views from the two branches of the legal profession in respect of the unification of the legal profession. At the same time there were and remain other important issues relating to legal services that needed to be addressed -issues such as cost, access and the responsiveness of the legal profession to client needs.

The Administration decided that it should take the lead in bringing together all these issues and in reflecting the views of the community on them.

I need hardly restate the importance of the rule of law, the continuity of our legal system, and the vital role played by the legal profession. We need a strong and independent legal profession. But the legal profession exists to serve the community. If 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 itself. That is not a development that any of us wishes to see.

As Hong Kong prepares to enter the twenty-first century, we must be sure that the legal services available are the best that can be provided in this dynamic, international city. We must not be complacent about the present quality and standard of professional services. There are many aspects of professional practice that are obsolete or obsolescent and have been abandoned elsewhere: many restrictions on the ways in which legal services may be offered; and many practices that are anticompetitive and are not in the public interest.

13

The Consultation Paper on Legal Services

In order to seek the views of the community on a wide range of issues relating to legal services, in March 1995 the Administration published the Consultation Paper on Legal Services. That paper contained 40 provisional recommendations.

Response to the Consultation Paper was good. 87 submissions were received, of which -

37 came from institutions, including the Law Society and Bar Association

29 came from lawyers

21 came from individual members of the public.

Additional feedback in respect of some of the provisional recommendations was obtained through a Public Opinion Survey of 1,000 households, conducted by the Department of Applied Statistics and Operational Research, City University of Hong Kong; and from the views reported in the press.

Of the 40 provisional recommendations there was clear public support for 34; there was clear public opposition to 1; and public views were evenly divided in respect of 5. Details of the feedback received from the consultation exercise, and the Administration's proposals for the way forward, were set out in the Report on Legal Services, published in February 1996.

The Report on Legal Services

Many of the proposals set out in the Report can be implemented by the legal profession without legislation. For example, there are proposals in respect of improvements to client care and complaints-handling procedures, and in respect of the elimination of touting and commission-taking. The Administration is following-up these proposals with the two professional bodies. With regard to touting and commission-taking in respect of criminal defence work, the Law Society has had an opportunity, over the past year, to tackle this problem by using its audit trail procedures and inspector's powers. The Independent Commission Against Corruption is now making an assessment of the extent of the problem. By the end of the year, the Administration should be in a position to decide whether there is a need to criminalise this type of behaviour.

So far as legislative proposals are concerned, the Report on Legal Services proposed that a Bill should be introduced into this Council in the current session to implement six of the proposals. The Bill that I am today introducing into this Council contains provisions in respect of five of those proposals, together with certain other amendments that I will describe in a moment. The one legislative amendment that was proposed in the Report but is not included in the Bill relates to the criteria for admission as a barrister.

14

The Report proposed that the criteria should be amended so that they are objective, reasonable, non-discriminatory and standards-based. This is necessary for Hong Kong to fulfil its obligations as a member of the World Trade Organisation. The Administration has for some time been pressing the Bar Association for its suggestions for new criteria, but these were received only after the Bill was gazetted. The Administration is now studying the Bar Association’s suggestions, with a view to introducing appropriate Committee Stage amendments to the Bill.

The Bill

I would now like to outline the main provisions in the Bill.

Clause 2 adds a new Part IIAA to the Legal Practitioners Ordinance relating to solicitor corporations. This new Part will implement the proposal in the Report on Legal Services that, subject to rules, solicitors should be permitted to incorporate their practices with either limited or unlimited liability. Given this proposed development, it is logical to permit foreign lawyers also to incorporate their practices, and clause 5 so provides. These two proposals follow recent changes to the law that permit accountants similarly to incorporate their practices.

Clause 7 of the Bill deals with interest on solicitors’ clients’ accounts. This provision implements the proposal in the Report on Legal Services that solicitors should be required to pay interest to clients, where it is reasonable to do so, in respect of clients’ money held by the solicitor. The circumstances in which there will be such a requirement will be set out in rules to be made by the Council of the Law Society.

Clause 8 of the Bill relates to the proposed new status of Senior Counsel, which will, with effect from 1 July 1997, replace the title of Queen’s Counsel. This provision will implement the proposal in the Report on Legal Services that the status of Queen’s Counsel should (under a different name) be retained. I would add that the new section will not affect the existing system of appointing Queen's Counsel, which will continue until 30 June 1997. It will therefore be possible for one last batch of Queen’s Counsel to be appointed before that date.

Clauses 9 to 13 of the Bill contain minor amendments to the Legal Practitioners Ordinance in the respect of the Barristers Disciplinary Tribunal. These amendments have been included to deal with practical problems that have emerged since the relevant provisions were enacted in 1992.

15

Clauses 14 and 15 add new sections to the Ordinance, providing for notaries public and solicitors to enter into multi-disciplinary practices. The Report on Legal Services proposed that solicitors should be permitted to enter into such practices, and it is consistent with this approach to permit notaries public to do likewise. Multidisciplinary practices offer several advantages: they offer clients the convenience of "one-stop shopping" for a broad range of services; they may reduce costs for the consumer and provide a quicker and more effective service; and they may enable lawyers to operate more efficiently, and to be in a better position to compete with other suppliers of professional services.

Clause 16 adds a new section 56A to the Ordinance, which invalidates any non-statutory scale of charges prescribed by the Law Society that must be charged by solicitors for undertaking non-contentious business. This follows from the Administration's belief that mandatory scale fees are wrong in principle, as being unfair to consumers and anti-competitive.

Clause 17 of the Bill amends section 74 of the Legal Practitioners Ordinance to broaden the composition of the Costs Committee, and to prohibit it from setting scale fees for conveyancing work. The Costs Committee is currently empowered to make rules, with the prior approval of the Chief Justice, to provide for the remuneration of solicitors in respect of non-contentious business. At present, the Committee consists of a High Court judge (who is chairman); the Registrar or a deputy registrar of the Supreme Court; the Director of Lands or the Director of Intellectual Property (or either Director's representative); and the President and one Vice-President of the Law Society, and one member of the Law Society. The Bill amends the constitution of the Committee so that, in addition to the current membership, it will include four to six other persons. At least one of these must be someone who represents the interests of consumers of legal services, and the others must have substantial experience in banking, accounting or some other commercial activity. The effect will be that some members will represent the solicitors profession or consumer interests, and others (including the representatives of the Judiciary) will act as independent arbiters.

Clause 18 of the Bill adds a new section 34A to the Conveyancing and Property Ordinance, which invalidates any contractual provisions that require a purchaser to pay the vendor's legal costs, if the sale is of a unit in an uncompleted development, or if the sale is by the developer of a completed development. This implements another of the proposals in the Report on Legal Services.

16

Abolition of scale fees

Clause 20 and Schedule 2 of the Bill repeal the scale fees prescribed for conveyancing work. The main arguments for and against the abolition of scale fees for conveyancing were set out in the Consultation Paper on Legal Services. The feedback received during the consultation exercise indicated that there was public support for abolition. Apart from the submissions from the Law Society and some individual solicitors, there were only 4 written submissions that opposed abolition. Nearly half of the respondents to the Public Opinion Survey who had previously consulted lawyers were dissatisfied with the scale fees system.

The Report on Legal Services set out the Law Society's reasons for o'pposing the abolition of scale fees, and also set out the counter-arguments. The Report proposed that legislation should be prepared to abolish scale fees in respect of conveyancing work but if, before the legislation was introduced into the Legislative Council, the Law Society were to make alternative proposals in respect of fees for conveyancing that were fair to consumers, the Administration would give them careful consideration before deciding on the way forward.

On 17 May 1996, the Law Society submitted its proposals to the Administration in the form of a Position Paper. The Law Society recognised that, since the last revision of scale fees in 1983, "an escalating property market may have caused the scale structure to become somewhat out of balance." It suggested that the appropriate way in which to address the problem would be for the Costs Committee to be reconvened to determine the acceptable level and structure of the fee system.

In view of the Law Society's response to the Consultation Paper on Legal Services and subsequent correspondence and discussions with us, the Administration had expected that the paper that the Law Society would eventually put forward would contain specific proposals in respect of the fees for various types of transactions, such as project conveyancing, and conveyances where a solicitor acts in the purchase and mortgage of the property. It had also expected that those specific proposals would be supported by detailed empirical data, including the report prepared by consultants commissioned by the Law Society.

This was not the case. The Law Society merely recommended that the Costs Committee should determine the level of fees, without producing any specific proposals. Although the Law Society's Position Paper suggested that "it would be appropriate in general terms for an 'across the board' reduction of 20% of the existing scale in respect of purchaser's costs," it did not give any reason for this.

17

The Law Society failed to put forward specific proposals, supported by empirical data. It cannot therefore be said that the Law Society's proposals are fair to consumers and are not anti-competitive. There is nothing for the Administration to evaluate except a proposal that the Costs Committee should decide the level and structure of the fee system. The Administration does not believe this proposal meets community aspirations and has therefore included in the Bill the provisions to abolish scale fees for conveyancing work, a move which has wide community support.

Since the Report on Legal Services was published, the Law Society and some individual solicitors have argued strongly against the abolition of scale fees. Let me respond to some of the arguments they have raised.

One point that is repeatedly asserted is that the abolition of conveyancing scale fees in England has been a "disaster", in that it led to a price war, which resulted in shoddy work, increased claims for negligence, and the bankruptcies of many solicitors. I would like to set the record straight.

Scale fees were abolished in England in 1973. 6 years later a Royal Commission undertook a comprehensive study of conveyancing throughout the country. There is no reference in the report to any of the problems I have just mentioned.

In recent years, England has suffered its worst recession this century and this has inevitably affected solicitors in many areas of their work. The volume of domestic conveyancing halved between 1988 and 1992. Prices fell in real terms between 1986 and 1993 by 45%.

An equally profound change occurred in the financial services industry, where keen competition developed for the sale of a wide range of complex financial products. This development gave financial institutions a considerably enhanced influence over all aspects of the housing market.

It is clear that solicitors in England have been faced with serious difficulties in recent years, and many have become bankrupt. But there is no basis for linking those difficulties with the abolition of scale fees in 1973. Nor is there any basis for assuming that things would have been different had scale fees still been in place. On the contrary, in March 1994, a report of the English Law Society's special working party on conveyancing services included the following statement -

'We have concluded that compulsory and recommended fee scales would be unworkable and ineffective.'

18

Those in favour of retaining scale fees have said that the abolition of scale fees will lead to a vicious price war, in which fees will drop below an unprofitable level and solicitors will produce shoddy work. There is no empirical evidence to support this assertion. And just analyse what is being said. It is that solicitors, whose professional training and discipline are said to justify their monopoly over conveyancing work, cannot provide proper and professional conveyancing services unless their fees are artificially fixed by reference to the price of the property conveyed. That is an astonishing argument for a profession to put forward and is untenable.

Some have pointed to the fact that Singapore has decided to retain a modified form of scale fees for conveyancing. They argue that Singapore's background is similar to that of Hong Kong. However, in Singapore only a relatively small segment of the population own or intend to acquire private housing. 87% of the population live in flats provided by the Housing Development Board, which provides legal services for sales, purchases and mortgages of those flats. The two places are not therefore comparable in respect of their housing markets.

The Law Society has also referred to the abolition of scale fees as "the English experiment". This is misleading. Scale fees have been abolished not only in England, but also in New Zealand, Canada and most parts of Australia. Moreover, the Administration is not aware of any place that has abolished scale fees and has subsequently re-introduced them.

If scale fees are abolished, solicitors will be required to charge conveyancing fees that are fair and reasonable "having regard to all the circumstances of the case". Consumers will therefore be charged on the basis of the work done, not on the value of the property concerned. This will improve the efficiency and cost - effectiveness of conveyancing services. The quality of the services provided depends on the expertise and professionalism of the solicitor concerned. Scale fees do not guarantee quality, and the abolition of scale fees will be no excuse for poor quality. The solicitors are members of a profession and must observe professional standards. The Law Society has a duty to discipline any of its members who fail in this respect. Other professions, trades and industries can provide quality services without price fixing, and there is no reason why solicitors cannot do so.

It has recently been suggested that the abolition of scale fees would undermine the independence of the legal profession. This Bill does not do that. No one is seeking to interfere with the way in which legal practitioners do their work. But it is quite legitimate for the legislature to step in and remove a pricing arrangement that is anti-competitive and unfair to consumers. Moreover, the monopoly that solicitors have in respect of conveyancing is conferred by legislation. The legislature is entitled to amend that legislation to prevent price-fixing in respect of conveyancing.

19

Public support

Mr President, as I have explained earlier, this Bill is the product of several years of debate, a debate that involves all sections of the community. This is only right. Members of the community are the consumers of legal services and they have every right to express their views on legal services in Hong Kong. The reforms contained in this Bill reflect those views and have wide public support.

Most of the proposed reforms are also supported by the two branches of the legal profession. This is not surprising, given that the Bill offers new opportunities for those who supply legal services. Solicitors and foreign lawyers will be permitted to operate from within new business structures - incorporated and multi-disciplinary practices. These structures will offer greater flexibility than the present regime, both in terms of raising capital and sharing profits, and in meeting clients’ needs for a wide range of services. Similar developments are occurring elsewhere in the common law world. Legal practitioners in Hong Kong must have the ability to compete with other places in respect of the quality and variety of their services. I am pleased that the Law Society supports these reforms.

I assure members that the Bill is put forward by the Administration in the belief that all its provisions are in the public interest. They will benefit members of the public, who are consumers of legal services, and will offer opportunities for legal practitioners to provide quality legal services in ways that are more cost-effective, competitive and flexible than at present.

Mr President, I commend this Bill to the Council.

End

Administration of Justice (Miscellaneous Provisions) Bill ♦ ♦ ♦ * ♦

Following is the speech by the Attorney General, the Hon Jeremy Mathews, in moving the second reading of the Administration of Justice (Miscellaneous Provisions) Bill in the Legislative Council today (Wednesday):

Mr President,

I move that the Administration of Justice (Miscellaneous Provisions) Bill 1996 be read the second time. The Bill aims to amend four Ordinances relating to the administration of justice and to security which are obsolete or anomalous and to repeal five Ordinances which are no longer needed or do not suit Hong Kong’s present circumstances.

20

The Bill amends the Supreme Court Ordinance to enable solicitors to be appointed as recorders and to give the Chief Justice the power to appoint temporary deputy registrars and temporary assistant registrars.

The Bill also amends the Jury Ordinance to abolish the requirement that the Registrar of the Supreme Court must state to the court or the judge his reasons for excusing a person from attending on a jury.

The opportunity is also taken to amend provisions in two security-related ordinances and to repeal five others. They are obsolete, anomalous, or have long fallen into disuse.

ITie Bill proposes to repeal the Secretary of State for Defence (Succession to Property) Ordinance. The Ordinance provides for the control and succession of property vested in the Secretary of State for Defence. The building lot covered in the Ordinance was sold in 1969 and the provisions are no longer required.

The Air Armament Practice Ordinance, which permits practice bombing in Sai Kung, is wholly outdated. Such activities ceased in 1966. Since then Sai Kung has been built up and extensively developed for recreational use. Bombing exercises of the sort regulated by the Ordinance cannot practically be undertaken in modem Hong Kong. The Bill proposes to repeal this Ordinance.

It is also for the same reason that the Defences (Firing Areas) Ordinance should be updated. The British garrison have not used the Basalt Island range since approximately 1985. All naval gunfire exercises now take place in international waters south of Hong Kong. No practice has taken place in the torpedo range for at least 30 years, while the three minesweeping ranges have not been used since at least 1984. They are now located across major shipping channels which would preclude their reactivation. The Bill proposes to update the references to firing areas in this Ordinance.

The Defence Works Protection Ordinance is substantially similar to section 1 of the Official Secret Act 1911 which prohibits the sketching of prohibited places for any purpose prejudicial to the safety and interests of the State. The localising legislation for the 1911 Act is being drafted and discussed in the Joint Liaison Group. The Ordinance is redundant, and the Bill proposes to repeal it.

The Compulsory Service Ordinance and the China Fleet Club Incorporation Ordinance are obsolete. The former was suspended by the Governor in Council in 1961. At present, service to all our auxiliary forces is entirely on a voluntary basis and we do not envisage that such service will ever be made compulsory again. The China Fleet Club closed down in 1992 and its Trustees wound up by the court in 1993. The Ordinance is therefore no longer needed. The Bill proposes to repeal these two Ordinances.

21

The Bill also seeks to amend the Protected Places (Safety) Ordinance to provide that an authorised guard may use ’’reasonable force” in carrying out duties under this Ordinance to bring the provisions in line with the internal orders of the Police and the British forces.

Mr President, the Bill is part of our continuing process of tidying up the statute book by removing anomalies, up-dating provisions and repealing obsolete Ordinances. I commend the Bill to this Council for early passage into law.

End

Social Workers Registration Bill ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Health and Welfare, Mrs Katherine Fok, in moving the second reading of the Social Workers Registration Bill at the Legislative Council today (Wednesday):

Mr President,

I move that the Social Workers Registration Bill be read a second time.

Purpose

The Bill has been prepared in response to a growing awareness among social workers of the desirability of professional self-regulation. Its principal objectives are:

(a) to establish a system for the registration of professional social workers;

and

(b) to establish a professional code of practice for registered social workers and to discipline those who contravene it.

Use of Title

A major consideration in drafting the Bill was the fact that the term ‘social worker’ is in wide and general use. Many talented and dedicated workers who may not be able to qualify for registration as social workers have been active in the social work field for many years. And during that time many will have referred to themselves or will have been referred to as social workers. Their work will have been referred to commonly as social work. We were concerned in drafting the Bill to strike a fair balance between protecting the terms ’social work' and ’social worker’ when used in a professional context and allowing such terms to continue to be used more generally in an informal context without inadvertently causing problems for the large number of voluntary workers in this field who are not professionally qualified.

22

In order to achieve this balance, the Bill takes the following approach to the use of title. It will make registration mandatory for

any person who wishes to use the title "Registered Social Worker" (or the initials "R.S.W."); and

any person who wishes to use the words "social work" or "social worker" to describe his professional qualifications or his profession as being the social work profession.

This would mean, for example, that a person who spends his helping street sleepers or drug addicts would not break the law if he described himself as a social worker engaged in social work so long as he did not claim to be professionally qualified or providing a professional service.

The Registration Board

Registration will be undertaken by a Social Workers Registration Board which will set and review the qualification standards for the registration of social workers, administer the registration system, formulate and approve codes of practice, and handle disciplinary matters.

The Board will comprise 15 members. Eight will be elected from among registered social workers. In addition to the Director of Social Welfare or his representative, there will also be six members appointed by the Governor. These will include not less than three lay members who are not social workers, and two registered social workers who are public officers.

The Board will be financed by fees collected from registered social workers. It will appoint its own Registrar and employ other persons to assist in the performance of its functions and responsibilities.

Disciplinary Proceedings

The Bill will also empower the Board to receive complaints against registered social workers, and to appoint disciplinary committees to conduct inquiries into complaints and recommend appropriate action. To maintain the integrity of the social work profession, a registered social worker must be permanently removed from registration if he is convicted of any of the serious offences listed in Schedule 2 to the Bill. Similarly, any person who has been convicted of any of these offences would be ineligible for registration. A person who is aggrieved by a decision of the Board will have the right of appeal to the Court of Appeal.

23

Consultation

Mr President, the Administration has consulted widely in preparing the Bill. We have discussed the main issues with non-governmental welfare organisations, with professional staff in the Social Welfare Department, with the Welfare Panel of this Council and with the Social Welfare Advisory Committee. Most importantly, we have discussed at great length all the issues with the existing Social Welfare Personnel Registration Council whose views have been of great assistance to us on the many complex issues involved.

Mr President, I commend this Bill to the Council.

End

Child Care Centres (Amendment) Bill ♦ ♦ ♦ ♦ ♦

Following is the speech by the Secretary for Health and Welfare, Mrs Katherine Fok, in moving the second reading of the Child Care Centres (Amendment) Bill 1996 at the Legislative Council today (Wednesday):

Mr President,

I move that the Child Care Centres (Amendment) Bill 1996 be read the Second time. This Bill proposes a package of amendments to the Ordinance which comprise -

(a) new provisions to prevent unsuitable persons from acting as childminders;

(b) new provisions to exempt mutual help child care centres from the full provisions of the Ordinance; and

(c) technical amendments to the Ordinance.

We have all heard of incidents in which children and babies have suffered serious neglect or physical abuse at the hands of the childminder in whose care they had been placed. Such cases have prompted calls for the introduction of controls over childminders. We have sought to strike a balance in devising new controls.

24

Bearing in mind the need to prevent unsuitable persons from acting as childminders as well as to avoid controls which would be so cumbersome or intrusive as to discourage persons from offering childminding services, we propose to empower parents themselves to check the suitability of the childminders they employ. We propose to prohibit a person from acting as a childminder if he or she has been convicted of any specified serious offence which could expose a child to the risk of abuse, or if he or she has committed any act or omission harmful to a child as recorded in the findings of a coroner’s inquiry. The childminder can obtain from the Director of Social Welfare a certificate verifying that he or she is not a prohibited person. Parents can thus ask a potential childminder to show them such a certificate to assist them in assessing the suitability of the person to look after their child.

This approach highlights the responsibility which we believe must ultimately rest with parents to check the suitability of the childminder they employ. If these amendments are passed, we shall launch a publicity drive to get this message across clearly and to encourage parents to take full advantage of these new provisions aimed at enhancing their ability to verify that their child is in the care of a suitable minder.

In addition to tightening controls over individual childminders, we are proposing amendments to make it easier for mutual help child care groups to operate. These groups are another useful way of addressing the problem of children being left unattended at home. They can be organised by social welfare agencies, church bodies, women’s centres, mutual aid committees and other non-governmental organisations where children are looked after by volunteers and parents on a roster basis in the premises of the organisations concerned. As these groups meet the criterion of being a customary or usual arrangement for the minding of children, the premises concerned fall under the full control of the Ordinance.

In order to encourage the formation of mutual help child care groups, the Bill will exempt the child care centres which they operate from the full provisions of the Ordinance provided they meet certain simplified requirements relating to supervision, structure of the premises and fire precautions.

Last but not least, the Bill also proposes some technical amendments to the Ordinance, for example, to revise the level of penalties for offences to be in line with present day values and to provide for appeals which at present lie to the Governor, to lie instead to the Administrative Appeals Board in future.

Thank you, Mr President.

End

25

Supplementary Appropriation (1995-96) Bill * ♦ ♦ ♦ ♦

Following is a speech by the Secretary for the Treasury, Mr K C Kwong, in moving the second reading of the Supplementary Appropriation (1995-96) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

I move that the Supplementary Appropriation (1995-96) Bill 1996 be read the second time.

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

The accounts for the financial year 1995-96 have been finalised by the Director of Accounting Services. The expenditure charged to 69 heads out of a total of 92 heads is in excess of the sum originally appropriated for those heads in the Appropriation Ordinance 1995. In each head, including Head 50 - Government Land Transport Agency, on which I shall elaborate later, this excess expenditure reflects supplementary provision approved by the Finance Committee or under powers delegated by it. These supplementary provisions were off-set by savings within the same head or under other heads or the provisions for ’’Additional Commitments” under Head 106 - Miscellaneous Services. The Supplementary Appropriation (1995-96) Bill 1996 seeks final legislative authority for the amount of supplementary provision approved in respect of particular heads of expenditure by the Finance Committee or under powers delegated by it.

The total supplementary appropriation required in respect of the 69 heads of expenditure is $7,482.6 million. As in previous years, this excess is largely attributable to the implementation of the annual pay adjustment for the Civil Service and Government subvented organisations ($4,627.1 million). Other major contributing factors include the increased expenditure under the Comprehensive Social Security Assistance and Social Security Allowance schemes ($1,073.6 million), and additional expenditure on pensions ($589.5 million). In preparing the original estimates for the year we had made provision to cover the costs of the 1995 pay adjustment, the inflation related adjustment to payments under the Comprehensive Social Security Assistance and Social Security Allowance schemes and the additional payments arising from the statutory inflation-linked adjustment to pensions under the ’’Additional Commitments" subhead.

26

With regard to the excess under Head 50 - Government Land Transport Agency of $371,730.58 to which I referred earlier, the Government Land Transport Administrator has advised me that the excess arose from expenditure which was urgent and unavoidable, since the Government was obliged to comply with the payment conditions stipulated in the related tenders. However, the payments were processed inadvertently without seeking the necessary prior authority for the excess at the head of expenditure level. The Government Land Transport Administrator has assured me that, with the assistance of the Director of Accounting Services, he will review his procedures to ensure better control and monitoring of expenditure to prevent the recurrence of such incidents. In addition I shall be writing to all Controlling Officers to remind them of their responsibilities under the Public Finance Ordinance.

As a result of the savings made in various heads of expenditure and the provision made in the original estimates for additional commitments, total expenditure for the financial year 1995-96 was within the sum originally appropriated in the Appropriation Ordinance 1995 even after the supplementary appropriation sought in this Bill.

Mr President, with these remarks, I commend the Bill to Members.

End

Costs in Criminal Cases Bill ♦ ♦ * * ♦

Following is the speech by the Attorney General, the Hon Jeremy Mathews, at the resumption of second reading debate on the Costs in Criminal Cases Bill in the Legislative Council today (Wednesday):

Mr President,

I am grateful to the Chairman, the Honourable Albert HO, and Members of the Bills Committee for their careful study of this Bill. I would also like to thank the Bar Association and the Law Society for their helpful comments.

The purpose of this Bill is to reform the existing law and practice governing the award of costs in criminal cases. The Bill removes anomalies and inconsistencies by providing a fair and coherent set of principles applicable to both the defence and prosecution at all levels of criminal courts. It gives the courts the power to ensure that persons who suffer losses and expenses as a result of unjustifiable conduct on the part of their representatives or lawyers in criminal proceedings will be compensated.

27

As Mr Ho has noted, considerable controversy arose over the wasted costs provisions. Let me re-state the underlying philosophy for these provisions. The idea is to arm the courts with an effective remedy for the protection of the injured, so that any costs incurred by a party to criminal proceedings as a result of any unjustifiable conduct on the part of his legal or other representative will be borne by that lawyer or representative. These wasted costs provisions would apply equally to the Crown. 1 should stress that the provisions are not aimed at penalising the lawyer or representative but to compensate the injured party for the loss where it would be unreasonable to expect him to pay.

The Bar Association and the Bills Committee were opposed to the definition of wasted costs as originally set out in Clause 2 which, as it now stands, proposes to define wasted costs to mean any costs incurred by a party to criminal proceedings as a result of an improper, unreasonable or negligent act or omission on the part of his legal or other representative, or where, in the light of any such act or omission occurring after such costs had been incurred, it is unreasonable to expect that party to pay.

The Bills Committee proposed that the scope of the definition of wasted costs in Clause 2 be limited to circumstances where costs are incurred as a result of any failure to appear or lateness without reasonable cause on the part of any legal or other representative. After careful consideration and bearing in mind the likely circumstances when a court may wish to make a wasted costs order, the Administration agreed to the Bills Committee's proposal. Accordingly, I will move an appropriate amendment at the Committee Stage.

The scrutiny of the Bill by the Bills Committee has led to some other proposed amendments, which I will also move at the Committee Stage. They include an amendment to increase the ceiling on defence and prosecution costs in summary proceedings from $15,000 to $30,000, to reflect current general costs levels. The Bill will be amended to allow future adjustment to both defence and prosecution costs in summary proceedings to be made by subsidiary legislation.

Another amendment proposed by the Bills Committee relates to the award of costs in favour of a defendant in the event of successful appeal against sentence. Clauses 8(b) and 9(2)(b) originally provided that if the court substitutes on appeal a sentence "substantially at variance with" that passed by the court below, costs may be awarded to the defendant. The criterion of "substantially at variance with" is to be clarified and replaced by one of "less severe punishment than", which is in line with the English legislation.

28

The Bill will also be amended to include a transitional provision so that it will not apply to criminal proceedings in respect of offences committed before the coming into operation of the enacted Bill. I will move to include a new Clause 25 at the Committee Stage to so provide.

A final amendment relates to the Chinese text of the Bill where a number of drafting improvements are made.

Thank you, Mr President.

End

Mental Health (Amendment) Bill: second reading * * ♦ ♦ ♦

Following is the speech by the Secretary for Security, Mr Peter Lai, at the resumption of the second reading debate of the Mental Health (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

The main purpose of this Bill, and its evolution through the Bills Committee are similar to the Criminal Procedure (Amendment) Bill 1996. I shall not go into the details here, but would again like to thank the Bills Committee for their constructive comments.

The Bills Committee has made suggestions to clarify and improve certain aspects of the Bill. The Administration has accepted the Bills Committee's suggestions and proposes to amend the relevant provisions of the Bill accordingly.

The principal amendments in respect of this Bill which I shall propose at the Committee stage include:

(a) first, to clarify that it would be up to the court or the magistrate to decide whether an order should be made, and the form of such an order, after considering the Director of Social Welfare's advice on the suitability of the order and the availability of a suitable guardian;

29

(b) secondly, to add definitions of "mental disorder", "supervision" and "treatment" to make it clear that the definition of "mental disorder" covers mental handicap; and

(c) thirdly, to specify that the medical practitioners who provide evidence should include at least two specialists in mental disorder. This amendment corresponds with a similar amendment which I proposed to

• the Criminal Procedure (Amendment) Bill 1996.

As I explained earlier, it is our intention that the provisions concerning guardianship orders, and supervision and treatment orders will come into effect on 1 November 1996.

Mr President, I recommend the Mental Health (Amendment) Bill 1996 to this Council.

End

Mental Health (Amendment) Bill: committee stage ♦ ♦ * * ♦

Following is the speech by the Secretary for Security, Mr Peter Lai, in moving the committee stage amendments of the Mental Health (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that clause 2 be amended as set out in the paper circularized to Members.

These amendments contain the principal improvements to the Mental Health (Amendment) Bill which 1 have already referred to in the Second Reading debate. They have been discussed in detail by the Bills Committee and have received the Committee's endorsement.

Mr Chairman, 1 beg to move.

End

30

Criminal Procedure (Amendment) Bill: committee stage

*****

Following is the speech by the Secretary for Security, Mr Peter Lai, in moving the committee stage amendments of the Criminal Procedure (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr Chairman,

I move that clauses 3 and 4 be amended as set out in the paper circularized to Members.

These amendments contain the principal improvements to the Criminal Procedure (Amendment) Bill which I have already referred to in the Second Reading debate. They have been discussed in detail by the Bills Committee and have received the Committee's endorsement.

Mr Chairman, I beg to move.

End

Dutiable Commodities (Amendment) Bill: second reading * * * * ♦

Following is a speech by the Secretary for the Treasury, Mr K C Kwong, at the resumption of the second reading debate on the Dutiable Commodities (Amendment) Bill debate on the 1996 in the Legislative Council today (Wednesday):

Mr President,

I would like to thank the Hon. Ronald Arculli and Members of the Bills Committee for their thorough but expeditious examination of the Bill. Indeed, the Committee completed the scrutiny of this long and technical piece of legislation in two meetings within one month. This is commendable and we are grateful for the Committee's support for the Bill.

31

The main purposes of the Bill are to streamline the procedures in the assessment of duty and in licence and permit control under the Dutiable Commodities Ordinance, to make improvements to ensure conformity with Bill of Rights requirements and to introduce a compounding scheme to deal more efficiently with minor offences under the Ordinance. The Bills Committee has given us valuable advice and, as a result, I will move at Committee Stage a number of amendments which have been agreed by the Bills Committee. I shall explain at that stage the reasons for these amendments.

Thank you, Mr President.

End

Dutiable Commodities (Amendment) Bill: committee stage * ♦ ♦ ♦ ♦

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the committee stage amendments of the Dutiable Commodities (Amendment) Bill 1996 in the Legislative Council today (Wednesday):

Mr Chairman,

There has been an increase in the number of offences committed under the Dutiable Commodities Ordinance concerning the illegal use of diesel oil involving taxis. To address this problem, we have strengthened the resources of the Customs & Excise Department to tackle such illegal activities and increased the maximum fine for such offences. In addition, we have included in the Bill before Members provisions to subject taxis to seizure on the same basis as private or goods vehicles. However, we note from the discussion with the Bills Committee that some Members are concerned about the possible impact of the proposed amendments on the taxi trade and the related hire purchase operation. We remain of the view that the situation with regard to taxis is serious, and there is no fundamental reason why they should not be treated in the same way as other vehicles. Moreover, there are adequate safeguards in the forfeiture provisions. Nonetheless, taking all factors into consideration, we accept that the concern expressed by some Members is not unreasonable. We are therefore prepared to stay our hand for the time being, and not oppose the Committee Stage Amendments moved by the Hon. Miriam Lau.

That said, we will closely monitor the situation and if it warrants, we may have to introduce the proposal again.

Thank you, Mr Chairman.

End

32

Public interest immunity certificates

*****

Following is a question by the Hon Margaret Ng and a reply by the Attorney General, the Hon Jeremy Mathews, in the Legislative Council today (Wednesday):

Question:

It is learnt that in a recent criminal court case, the Chief Secretary signed two "public interest immunity certificates" claiming that certain documents should not be disclosed on the ground that it was in the interest of the public to protect the identity of the informant concerned. The presiding Judge dealt with the certificates by ordering some of the documents in question to be disclosed, and it was subsequently held that there was no case to answer. In this connection, will the Government inform this Council:

(a) who decides that a public interest immunity certificate is necessary in any given case; and what guidelines will be taken into consideration before a decision is made to request the Chief Secretary to sign a public interest immunity certificate;

(b) of the number of public interest immunity certificates signed by the Chief Secretary in the past 3 years; and

(c) whether the Chief Secretary has ever refused to sign any public interest immunity certificate in the past 3 years; and if so, in how many cases?

Reply:

Mr President,

In the case referred to in the question, the Chief Secretary issued two public interest immunity certificates, the first claiming immunity in relation to 56 documents and the second in relation to ten documents. After considering the certificates and examining the documents, the Judge ordered disclosure of 14 of the documents covered by the first certificate and one document covered by the second certificate. The Judge's decision that there was no case to answer was unrelated to the content of the documents which were disclosed.

33

To answer the specific questions:

(a) the decision to issue a public interest immunity certificate is that of the Chief Secretary after taking legal advice from the Crown Solicitor. The categories of document in respect of which public interest immunity may be claimed and the procedures for considering and making claims are governed by the common law and also, in civil cases, by rules of court; [0.77, r.12]

(b) since the beginning of 1993, the Chief Secretary has signed 8 public interest immunity certificates (5 in criminal proceedings, 3 in civil proceedings). Two of the cases (1 criminal, 1 civil) have not yet proceeded to trial and the certificates have not therefore been produced;

(c) during the period referred to in the question, the Chief Secretary has not refused to sign any public interest immunity certificate.

End

Control on use of pagers by persons below 18 ♦ ♦ ♦ ♦ *

Following is a question by the Hon Lo Suk-ching and a reply by the Secretary for Economic Services, Mr Stephen Ip, in the Legislative Council today (Wednesday):

Question:

The use of pagers by teenage students is becoming increasingly common and is causing concern among schools as well as parents. In view of this, will the Government inform this Council whether, in respect of those rental and service contracts entered into with persons below the age of 18, any guideline has been issued to the paging service operators requesting them to seek the consent and countersigning of the parents or guardians of such persons; if not, whether consideration will be given to formulating such guidelines?

34

Reply:

Mr President,

There are no provisions under the Telecommunication Ordinance or the licences for the operation of paging services requiring paging service operators to obtain the consent and countersigning of the parents or guardians of persons under the age of 18 when they enter into rental or service contracts with such persons. The Telecommunications Authority is, however, aware of public concern about the use of pagers by minors and has recently issued a circular letter to all paging service operators seeking their co-operation to make it a requirement for any service contract they have with minors to be countersigned by their parents or guardians. The paging service operators are seriously considering the matter. Some major operators have already changed their policy to comply with our advice, while others already have such a policy in place.

End

Right of abode issue under discussion with Chinese side

*****

Following is a question by the Hon James To Kun-sun and a reply by the Secretary for Security, Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

The Standing Committee of the National People's Congress of the People's Republic of China (PRC) has passed a draft document clarifying how the PRC's Nationality Law would apply in the Hong Kong Special Administrative Region (SAR) from 1 July 1997. It is stated in the document that Hong Kong residents with foreign nationality may declare their foreign nationality to the relevant authorities of the SAR by producing valid documents. In this connection, will the Government inform this Council of its stance on such an arrangement and whether it has sought clarification from the Chinese officials concerned regarding the following:

(a) whether returning Hong Kong residents with foreign nationality who do not declare their foreign nationality will be deemed to be Chinese nationals; if so. what the response of the Chinese officials is ;

35

(b) whether returning Hong Kong residents with foreign nationality will automatically obtain the permanent SAR resident status after they have declared their foreign nationality, or whether they must go through certain procedures such as making an application or a declaration before they can obtain such status; if so, what the response of the Chinese officials is;

(c) the legal basis on which re