Daily Information Bulletin
Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777



Thursday, January 15, 1998



CONTENTS
========
1.  CE's opening remarks at PLC
2.  Residents urged to unite in meeting challenges
3.  Update on avian flu
4.  Water discharged from Shenzhen Reservoir
5.  Water discharge from Shenzhen has no adverse impact
6.  ECC members reappointed
7.  BOE briefed on Manchester education conference
8.  Latest Company Registry figures released
9.  Legislative amendments and financial assistance to improve fire safety
10. Criminal Procedure (Amendment) Bill endorsed by ExCo
11. Labour Department Performance Pledge for 1998
12. Subsidiary legislation on anti-smoking to be amended
13. Eligible electors reminded to beat Friday deadline
14. Another batch of Language Fund projects approved
15. Air quality report for December released
16. Amusement rides fees to be revised
17. Election petition rules to be gazetted
18. Cheung Shang Tsz declared a historical building
19. Six commended for bravery in marine incidents
20. Index of industrial production for third quarter of 1997
21. New traffic management scheme in Kennedy Town
22. New Tsz Wan Shan Post Office to open on Monday



1.  CE's opening remarks at PLC
    ***************************

     Following is a translation of the opening remarks
made by the Chief Executive, Mr Tung Chee Hwa, at the
question-and-answer session in the Provisional Legislative
Council today (Thursday):

Madam President, Honourable Members,

     It is a great pleasure for me to be here at this
Provisional Legislative Council meeting at the start of a
new year to speak to you on matters which cause us much
concern.  Recently, we have witnessed a string of events,
in particular the tension which has once again mounted in
the Asian financial markets, leading to negative
repercussions on Hong Kong.  I would like to take this
opportunity to share my views with you specifically on
Hong Kong's economic and financial situation.

     Following another round of financial turbulence in
the Asian markets over the past one or two weeks, general
market sentiment has turned into one of deep pessimism.
The financial crisis which hit the Asian markets so
unexpectedly in the past six months has engulfed many
economies and regions.  Despite our strong fundamentals
and stable monetary system, Hong Kong was also caught in
the maelstrom, suffering heavy setbacks as a result.  Our
financial market and the entire economic system have been
put to test while the people of Hong Kong are enduring
great hardships.  Although the crisis is hopefully near
the end, there may still be some ripples, so it is vital
that we remain on the alert at all times.

     On analysis of the several countries hardest hit by
the financial turmoil, both financial and non-financial
experts have come to more or less the same conclusion.  In
their opinion, all these countries share some marked
characteristics: mainly an overborrowing of foreign loans;
particularly short-term loans; lack of an accurate
estimate of the return on investment; an inadequate
monitoring system for the banks; and ineffective
macroeconomic management.  These fundamental weaknesses,
which should have been rectified in the first place, have
been taken advantage of, by speculators.  Consequently,
the Asian financial market is hit by a catastrophe.

     Our economic and financial fundamentals are strong.
Hong Kong has a sound and effective financial monitoring
system; ample fiscal reserves as well as prudent financial
management policies.  The Government is free of any
foreign debts.  Private firms also exercise financial
prudence when seeking foreign loans.  In spite of these,
speculators have stirred up trouble in our stock and
futures markets and challenged our determination and
ability to maintain the local currency's link with the US
dollar.  Hence, our linked exchange rate system and even
the entire financial and economic system are being put to
severe tests.

     In the face of this financial situation, the SAR
Government's most important task at hand is to take firm
and resolute measures to safeguard the stability of Hong
Kong's economic system.  To achieve this, it is vital for
us to defend the linked exchange rate, and the SAR
Government is determined to do so.  This is a basic policy
to maintain the economic stability and prosperity of Hong
Kong.  Our sound economic foundation, huge fiscal reserves
and effective financial systems and monitoring mechanism
are abundant proof of our capability to maintain the
currency linkage.  The alarming events in some of our
neighbouring countries have only served to make us stand
firm in defence of the dollar peg.  Failure to do so will
bring disastrous consequences.

     In the course of defending the linked exchange rate
system, the following situations will undoubtedly arise -
Hong Kong dollar interest rate goes up; property prices
come down; the stock market lingers at low levels; our
tourism is in the doldrums; the consumer spending
sentiment diminishes; our economic growth in 1998 will
slow down significantly, and our unemployment figures will
be on the rise.  If the external uncertainties do not
clear up as soon as possible, there will be difficult
times for all of us in 1998.  The SAR government is well
aware of the sufferings of the people and the troubles
they encounter in the current financial turmoil.

     However, we should also look at the other side of the
coin.  In recent years, our economy has been confronted
with a number of disturbing problems, such as soaring
property prices, rapidly increasing salaries, economic
restructuring that has a negative impact on our economy
and sustained inflation rate over those of Europe and the
United States.  If we keep our hands off these problems,
then Hong Kong's competitiveness and economic vitality as
well as the interests of every member of the public will
inevitably be undermined.  Against this perspective, the
economic adjustment that comes as a result of the recent
financial turmoil has certain positive effects on our
economy: the decline of property prices and the slow-down
of salary adjustment and inflation will enhance our
competitiveness and be conducive to the long-term healthy
economic development of Hong Kong.

     We are very much concerned about the sufferings
sustained by the Hong Kong people as a result of the
recent financial turmoil and our policy of upholding the
linked exchange rate.  Nevertheless, I firmly believe that
with the solid foundation of our economy and the strong
and rapid economic development within our country, Hong
Kong will surely be the first to get back on its feet
after the Asian financial turmoil.  At present, our
economy is undergoing a period of adjustment.  In a free
market economy, it is difficult to find a ready solution
that would bring immediate relief to the problems we now
face.  However, we do have huge fiscal reserves, with
which the SAR Government is able to stabilise Hong Kong's
economy and defend the currency linkage, while pushing
ahead with the massive infrastructural development as
firmly stated in the "Policy Address".  In fact, since the
outbreak of the financial turmoil, the government has been
actively seeking other possible measures to strengthen the
economy vitality, and to weather through the hard times
with all the people of Hong Kong.

     I am aware that many Councillors present today are
deeply concerned about the housing problem in Hong Kong.
I would also like to take this opportunity to reaffirm the
Government(s position - we do not wish to see the property
prices in the territory soar; neither do we wish to see
our property market collapse.  In fact, real estates are
very important pillars of Hong Kong's economy and for many
people, these are their life.  Property prices affect the
stability of the banking system to a great extent.  The
Government is therefore paying close attention to the
development of the property market, particular at this
time.

     To view our society as a whole, I hope that all
residents of Hong Kong will, at these difficult times,
take a look at the achievements we have made so far and
the competitive edge we have in development.  The problem
we are now facing is nothing but to find the way to
overcome the temporary difficulties confronting us and
keep moving ahead to reach new heights.  As what I said a
moment ago, the Asian financial turmoil has placed
obstacles in the course of our development.  Yet, the
foundations on which Hong Kong is firmly based are hardly
shaken.  Instead, the financial crisis provides us with an
opportunity to speed up our adjustments for improvement.
All the advantages that we had prior to the financial
crisis are still with us.  The forecast of the relevant
government department reveals that our economy will
continue to grow in 1998 despite the marked economic slow-
down in the territory.  We have no reason to lose
confidence of ourselves, nor have we any ground to believe
that Hong Kong will never be able to scale new heights.
We maintain a very optimistic attitude towards Hong Kong's
inherent strengths as well as its resilience in adapting
itself to unfavourable circumstances.  We should remember
in particular that upon the smooth return of Hong Kong to
China on July 1, 1997, we have become masters of our own
home and have successfully implemented the "one country,
two systems" concept.  We should rejoice over and take
pride in these great achievements.  On no ground shall we
allow our lofty spirit be dampened by a financial crisis.
The Central People's Government has great confidence in
Hong Kong and believes that we are able to administer Hong
Kong properly under the principle of "one country, two
systems".  Given the trust of the Central People(s
Government as well as that of the entire nation, there is
no reason for us not to trust ourselves.

     Besides, I do hope that the more difficult our
situation becomes, the more strongly shall we stand united
and the more need do we have in building a community of
great harmony and cooperation.  This is the primary
foundation of support we count on to surmount difficulties
in adverse situation and to rise to challenges.  I hope
that my administration, members of the Council as well as
the whole community will work together to build a
harmonious and cooperative society.

     Thank you.  Questions from you are all welcome.

End


2.  Residents urged to unite in meeting challenges
    **********************************************

     The Chief Executive, Mr Tung Chee Hwa, said today
(Thursday) that with Hong Kong's inherent strengths and
resilience, it can surmount difficulties and rise to
challenges so long as Hong Kong people stand united and
work together.

     Addressing the Provisional Legislative Council,
Mr Tung said that the more difficult the situation was,
the more united we should be and the Administration hoped
to work with the whole community to build a harmonious and
cooperative society.

     Mr Tung pointed out that during the Asian financial
turmoil in the last few months, Hong Kong had also
suffered heavy setbacks despite its strong fundamentals
and stable monetary system.

     "Hong Kong has a sound and well-operated financial
monitoring system; ample fiscal reserves as well as
prudent financial management policies.  The Government has
no foreign debts.  Private firms take prudent financial
measures when seeking foreign loans.

     "In spite of these, speculators have stirred up
trouble in our stock and futures markets and challenged
our determination and ability to maintain the linked
exchange rate.  Hence, our linked exchange rate system and
even the entire financial and economic system are put to
severe tests," he said.

     Mr Tung stressed that in the face of this financial
situation, the Government's most important task at hand
was to take firm and resolute measures to safeguard the
stability of Hong Kong's economic system.  To achieve
this, it was vital for us to defend the linked exchange
rate, and the Government was determined to do so.

     "Our sound economic foundation, huge fiscal reserves
and effective financial systems and monitoring mechanism
are abundant proof of our capability to maintain the
currency linkage.  The staggering events in some Asian
countries have only made us more determined to maintain
the dollar peg," he said.

     Mr Tung said that from another perspective, the
economic adjustment that came as a result of the financial
turmoil had certain positive effects on the economy: the
decline of property prices and the slow-down of salary
adjustment and inflation would enhance our competitiveness
and be conducive to the long-term healthy development of
our economy.

     "The Asian financial turmoil has placed obstacles in
the course of our development.  Yet, the foundations on
which Hong Kong is firmly based are hardly shaken.  All
the advantages that we had prior to the financial crisis
are still with us.  The forecast of the relevant
government departments reveals that our economy will
continue to grow in 1998 despite the marked economic slow-
down in the territory," he added.

     He pointed out that we had no reason to lose
confidence of ourselves and on no ground should we allow
our lofty spirit be dampened by the financial crisis.

     "We should remember in particular that upon the
smooth return of Hong Kong to China on July 1, 1997, we
have become masters of our own home and have successfully
implemented the 'one country, two systems' concept.  We
should rejoice over and take pride in these great
achievements.

     "The Central People's Government has great confidence
in Hong Kong and believes that we are able to administer
Hong Kong properly under the principle of 'one country,
two systems'.  Given the trust of the Central People's
Government as well as that of the entire nation, there is
no reason for us not to trust ourselves," he said.

     Mr Tung said that the Government was well aware of
the sufferings and problems encountered by residents in
the current financial turmoil.

     "We are very much concerned about this.
Nevertheless, I firmly believe that with the solid
foundation of our economy and the strong and rapid
economic development within our country, Hong Kong will be
the first to get back on its feet when the Asian financial
turmoil is over.

     "We have huge fiscal reserves, with which the
Government is able to stabilise Hong Kong's economy and
maintain the currency linkage while pushing ahead with the
massive infrastructural development as firmly stated in
the Policy Address.

     "In fact, since the outbreak of the financial
turmoil, the Government has been actively seeking other
possible measures to strengthen the economic vitality, and
to weather through the hard times with all the people of
Hong Kong," he said.

     Mr Tung said that he hoped all residents would, at
these difficult times, take a look at the achievements we
had made so far and the competitive edge we had in
development.

     "The problem we are now facing is nothing but to find
the way to overcome the temporary difficulties confronting
us and keep moving ahead to reach new heights," he said.

     The Chief Executive also noted that many people were
concerned about the housing problem.

     He said: "Real estates are very important to our
economy and for many people, they represent the savings of
a lifetime.  Property prices affect the stability of the
banking system to a great extent.  The Government is
therefore paying close attention to the development of the
property market, in particular at this time."

End


3.  Update on avian flu
    *******************

     The Department of Health (DH) announced today
(Thursday) that there was no new case of influenza A
(H5N1) today.

     However, the 25-year-old female involved in Case 13
of the confirmed case list, died of pneumonia
complications late last night.

     In addition, the condition of the 19-year-old female
involved in Case 16 of the confirmed case list has
improved from poor to fair.

     The total number of cases remains 18 confirmed and
one suspected cases.

     Following is a list of the cases and their latest
conditions:

Confirmed cases
***************

Case 1
Sex / Age: Male / 3 yr
Condition: Died

Case 2
Sex / Age: Male / 2 yr
Condition: Recovered and discharged

Case 3
Sex / Age: Female / 13 yr
Condition: Died

Case 4
Sex / Age: Male / 54 yr
Condition: Died

Case 5
Sex / Age: Female / 5 yr
Condition: Recovered and discharged

Case 6
Sex / Age: Male / 37 yr
Condition: Recovered and discharged

Case 7
Sex / Age: Female / 24 yr
Condition: Under treatment, condition critical

Case 8
Sex / Age: Male / 2 yr
Condition: Recovered and discharged

Case 9
Sex / Age: Male / 4 yr
Condition: Recovered and discharged

Case 10
Sex / Age: Male / 1 yr
Condition: Recovered and discharged

Case 11
Sex / Age: Female / 3 yr
Condition: Recovered and discharged

Case 12
Sex / Age: Female / 60 yr
Condition: Died

Case 13
Sex / Age: Female / 25 yr
Condition: Died

Case 14
Sex / Age: Female / 14 yr
Condition: Recovered and discharged

Case 15
Sex / Age: Male / 3 yr
Condition: Recovered and discharged

Case 16
Sex / Age: Female / 19 yr
Condition: Under treatment, condition fair

Case 17
Sex / Age: Female / 6 yr
Condition: Recovered and discharged

Case 18
Sex / Age: Female / 34 yr
Condition: Died

Suspected cases
***************

Case 1
Sex / Age: Female / 3 yr
Condition: Recovered and discharged

End


4.  Water discharged from Shenzhen reservoir
    ****************************************

     Hong Kong has been informed by the Shenzhen Authority
that water would be discharged from the Shenzhen reservoir
from about 10 am today (Thursday).

     There may be a risk of flooding in some parts of the
New Territories.  Various government departments,
including District Office (North), Drainage Services,
Police, Fire Services, Water Supplies and Social Welfare
have been informed in order that they can take any
necessary measures.

     The District Office (North) is making arrangements to
inform local residents of the appropriate actions to take.

End


5.  Water discharge from Shenzhen has no adverse impact
    ***************************************************

     The Drainage Services Department has not observed any
flooding impact resulting from the discharge of water from
the Shenzhen Reservoir from 10 am to 3 pm today
(Thursday).

     "During the period, we monitored water levels closely
by means of six water gauges planted in areas likely to be
affected by the discharge.  Readings of these gauges were
transmitted to our flood control centre instantaneously
and interpreted by engineers who would alert departments
concerned of any incident," a spokesman for the department
said.

     "The readings taken today showed that water levels
were well within acceptable level," the spokesman added.

     It is understood that water was discharged into the
Shenzhen River at a rate of 30 cubic metres per second.

End


6.  ECC members reappointed
    ***********************

     The Chief Executive has reappointed Mr Ronnie Wong
Man-chiu as Chairman of the Environmental Campaign
Committee (ECC) for two years commencing January 1, 1998.

     A Government spokesman said the objective of the ECC
was to promote public awarenss of environmental protection
issues and at the same time encourage and mobilise people
from all walks of life to contribute towards a better
environment.

     A full list of the re-appointments and new
appointments of the ECC members which will be published in
the Gazette tomorrow (Friday) is as follows:

     Re-appointments:

     Dr Simon Chau Sui-cheong
     Mrs Pamela Chan Wong Shui
     Professor Peter Hills
     Ms Betty Ho Siu-fong (representative of the
                           Conservancy Association)
     Mrs Peggy Lam Pei Yu-dja
     Mr Edwin Lau Che-feng (representative of the Friends
                            of the Earth)
     Mr Stanley Lee (representative of the Green Power)
     Mr Nigel Watt (representative of the World Wide Fund
                    for Nature (Hong Kong))
     Mr Vincent Wong Po-sum
     Mr Yung Ying-cheuk

     New appointments:

     Miss Lisa Lam
     Miss Nisa Leung
     Mr Thomas Pang Cheung-wai
     Mr Edward Stokes

End


7.  BOE briefed on Manchester education conference
    **********************************************

     The International Congress on School Effectiveness
and Improvement (ICSEI) held from January 4 to 7 in
Manchester has provided a valuable opportunity for
exchange of ideas and experience among world scholars and
educators, the Board of Education (BOE) learned today
(Thursday).

     The board at today's meeting was briefed on the ICSEI
which was attended by a four-member BOE delegation led by
BOE chairman, Mr Moses Cheng, and accompanied by Hong Kong
education officials including the Director of Education,
Mrs Helen C P Lai Yu.

     Research projects conducted by congress participants
as well as improvement programmes of schools visited by
the delegation indicated that greater collaboration with
all parties concerned was the key to success in school
effectiveness and improvement.

     Mr Cheng said:"It is essential that partnership
should be developed among schools, parents, academics and
the community.

     "This is in line with the characteristics of the
existing and planned initiatives in Hong Kong."

     On the question of ownership of improvement efforts,
Hong Kong delegates noted that all reform ideas must be
owned by teaching practitioners and parents.

     There should also be mechanisms to input ideas of
improvement measures and for such ideas to be considered
by those responsible for decision-making and policy
implementation.  Adequate training should be provided to
help teachers fully understand the initiatives and to
engage in active promotion of the improvement measures.

     Some 560 academics, educators and policy makers from
61 countries attended the ICSEI on the theme, "Reaching
out to all learners".  There were keynote addresses by
eminent academics and educators, presentations, workshops
and symposia.

     More than 50 congress participants attended the Hong
Kong symposium hosted by the BOE delegation.  The Hong
Kong speakers explained the Special Administrative
Region's efforts towards quality school education.  The
presentations attracted considerable interest among
participants, many of which looked forward to coming to
Hong Kong for the ICSEI in year 2000.

     Some Hong Kong delegates also visited primary and
secondary schools in Sheffield which made outstanding
improvement efforts.  These included new teaching and
learning approaches; using pupil tracking and mentoring to
set and achieve targets; improving literacy standards;
harnessing community action to raise achievement and
engaging parents as partners in school improvement.

     Meanwhile, on the application of information
technology (IT) in schools, the board at this morning's
meeting noted that a consultative document will be issued
on the IT strategy formulated by the Education and
Manpower Bureau in collaboration with the Education
Department.

     On the implementation of educational aims, the
relevant sub-committee proposed that a tertiary
institution should be commissioned to provide training and
support services for schools and that the sub-committee
should issue a work report to enhance understanding of the
subject.

     On quality assurance inspection, the board was told
that inspections were conducted at two government
secondary schools and one aided primary school in November
and December 1997 respectively and that inspections will
be conducted in 30 pilot schools commencing late February
1998.

     Through such programmes, it is envisaged that schools
in Hong Kong would better understand the nature and
operation of Quality Assurance Inspection.  At the same
time, officers from the Education Department will gain
insights from working experience to further fine-tune the
elements of such inspection.

End


8.  Latest Company Registry figures released
    ****************************************

     Figures released by the Registrar of Companies,
Mr Gordon Jones today (Thursday) indicated mixed results
for the calendar year 1997 by comparison with 1996, with
an increase of activity in a number of areas.

     The Companies Registry figures showed that the total
number of companies registered under the Companies
Ordinance was 474,517, 1.8 per cent less than 483,181 at
the end of 1996.  The number of new companies registered
during the year was 49,275, marginally less than that of
1996 by 459.

     The net decrease in the number of companies on
register is the result of the removal of 46,268 companies
in 1997 which failed to file annual returns for two or
more consecutive years.  This is part of the extensive
striking off exercise carried out by the Companies
Registry over the past three and a half years to remove
from the register companies which had been commercially
defunct for many years.

     The total number of oversea companies registered
under Part XI of the Companies Ordinance stood at 5,067 at
the end of the year, 463 more than 1996.  The number of
new oversea companies establishing a place of business in
Hong Kong and registered under Part XI of the Companies
Ordinance in 1997 was 713, an increase of 7 per cent over
1996.

     The number of charges on the assets of companies
registered in 1997 increased by 41 per cent from 33,788 to
47,705 compared with 1996 and the amount secured by those
charges increased by 238 per cent form $80,009m to
$270,055m.

     During the year a total of 356 prospectuses,
including 103 in respect of mutual funds, were registered
compared with 247 prospectuses, including 92 in respect of
mutual funds, during the previous year.

     The total number of documents received for filing
during the year increased by 6.9 per cent from 1,556,838
to 1,664,421 and the number of searches made by the public
during 1997 as compared with that in 1996 increased by 6.6
per cent from 1,878,431 to 2,002,372.

     The total number of summonses issued by the Registrar
of Companies against companies and their directors for
breaches of the Companies Ordinance, mainly for late
filing of returns regarding changes to the directors or
secretary of a company or in their particulars during the
year was 200, compared with 195 in 1996.  133 convictions
were obtained during the year, compared with 200 in 1996
and 61 cases remain to be heard by the court (9 in 1996).

End


9.  Legislative amendments and financial assistance to improve fire safety
    **********************************************************************

     The Government has proposed to set up a $200 million
Fire Safety Improvement Fund to help building owners and
owners' corporations (OCs) of prescribed commercial
premises and specified commercial buildings to upgrade or
improve fire safety standards of their premises or
buildings, the Deputy Secretary for Security, Mr Alex
Fong, said today (Thursday).

     This will provide practical assistance to owners who
may be affected by the Fire Safety (Commercial Premises)
(Amendment) Bill 1998, which seeks to extend the Fire
Safety (Commercial Premises) Ordinance to cover pre-1987
old commercial buildings.

     The Home Affairs Department (HAD) is also planning to
set up a Building Management Resource Centre in 1998.  The
Centre will provide information to assist affected owners
and occupiers who are required to comply with the Fire
Safety (Commercial Premises) Ordinance.

     "We plan to implement the legislation by phases to
lessen the impact on the public.  Our first priority is to
deal with the some 400 commercial buildings with their
building plans first submitted to the Building Authority
on or before March 23, 1973," Mr Fong said.

     Based on the experience gained from dealing with this
first priority group, he said the Government would conduct
a review before extending the legislation to cover the
remaining pre-1987 commercial buildings.

     "Our second priority will be to deal with the 1,000
or so commercial buildings whose building plans were first
submitted before a substantially revised edition of the
Code of Practice on Minimum Fire Service Installations and
Equipment took effect on March 1, 1987," he said.

     Similar to the requirements in the Ordinance for
prescribed commercial premises, owners and occupiers of
old commercial buildings would be required to provide or
improve one or more additional fire protection measures
including emergency lighting, automatic cut-off devices
for mechanical ventilating systems, manual fire alarm
systems, fire hydrant/hosereel systems and automatic
sprinkler systems, he said.

     On construction requirements, the new legislation
would require improvements to building structure including
means of escape, means of access for fire fighting and
rescue and fire resisting construction.

     "In line with the arrangements for prescribed
commercial premises in the Ordinance, the authorities may
issue directions to require owners or occupiers to improve
fire safety measures with reference to the authorities'
Code of Practice, specifying a reasonable time period
during which the requirement must be met," Mr Fong said.

     However, a pragmatic and flexible approach would be
taken in enforcing the proposed legislation, with the
emphasis on encouraging owners or occupiers of affected
buildings to comply with the specified requirements, he
added.

     During the consultation exercise on the legislative
proposals which took place from May to July 1997, concerns
were expressed in some submissions on the costs and
practical difficulties in complying with the fire safety
requirements.

     "The proposed loan fund will assist owners of
commercial buildings and premises to finance upgrading
works."

     Those who will be eligible to apply for loans from
the proposed Fire Safety Improvement Fund (FSIF) include
owners of individual units or OCs established under the
Building Management Ordinance.  In the absence of an OC,
the owners of the common parts of a building, i.e., all
owners of individual units, will be eligible for loans.

     The first applicants mainly fall into two groups.
The first group will comprise owners and OCs of the some
500 prescribed commercial premises as defined in the Fire
Safety (Commercial Premises) Ordinance which have been
identified by the Fire Services Department to be covered
in the first phase of implementation.

     The second group will be those affected by the
amendment legislation being proposed.  They are owners or
OCs of the some 400 pre-1973 commercial buildings.

     Loans from the FSIF could be used to finance works
pertaining to upgrading fire service installations and
equipment as well as works improving building structures
for fire safety.  These works could be carried out either
in individual units or common parts of premises or a
building.  Professional services in connection with such
works and associated, consequential or related works could
also be covered by the loans.

     For the purpose of vetting loan applications and
overseeing operation of the FSIF, a Fire Safety
Improvement Fund Advisory Committee comprising both
Government officials and non-official members appointed
from the fire safety and building safety industry will be
set up.

     "The new HAD Building Management Resource Centre will
provide information and advice to building management
bodies on ways to improve the fire safety facilities of
their buildings.  We are planning to set up a display unit
and a library with information on registered contractors,
the legislative requirements that they need to comply, and
practical advice on the installations and works that are
necessary to comply with those requirements," Mr Fong
said.

     The Fire Safety (Commercial Premises) (Amendment)
Bill 1998, which has been approved by the Executive
Council, will be tabled in the Provisional Legislative
Council on January 21.

End


10. Criminal Procedure (Amendment) Bill endorsed by ExCo
    ****************************************************

     A bill to amend the Criminal Procedure Ordinance to
provide for the determination of minimum terms of
imprisonment for prisoners who were under the age of 18
when they committed murder and sentenced to mandatory life
imprisonment has been endorsed by the Executive Council.

     "The new section 67C of the Criminal Procedure
Ordinance, enacted in June 1997, provides for the
determination of minimum terms for prisoners serving
discretionary life sentences and prisoners detained at
Executive Discretion, formerly known as Her Majesty's
Pleasure or HMP," a Government spokesman said today
(Thursday) while explaining the background of the Criminal
Procedure (Amendment) Bill.

     "Due to a technical omission in the current
legislation, it does not apply to mandatory life
imprisonment cases," he added.

     The spokesman explained that it had always been the
Government's policy intent to treat mandatory lifers who
committed murder under the age of 18 in the same way as
those detained at Executive's discretion.

     Noting that there were four such mandatory life
imprisonment cases, the spokesman said: "The prisoners in
these cases were sentenced to mandatory life imprisonment
because they were convicted of murder and were sentenced
after section 70 of the Criminal Procedure Ordinance,
which provided for detention at HMP, was repealed in 1993
and replaced by mandatory life imprisonment terms."

     In nature, these four mandatory life imprisonment
cases were no different from Executive discretion cases,
he said.

     "We propose to amend the Criminal Procedure Ordinance
so that the same minimum term arrangements will apply to
prisoners who committed murder when they were under 18
years of age, no matter whether they were sentenced before
or after 1993," the spokesman said.

     The Chief Justice would be required to recommend
minimum terms for the four mandatory life cases within six
months from the commencement of the amended legislation,
and the Chief Executive to make a determination as soon as
practicable, after taking into account the Chief Justice's
recommendations and written representations from the
prisoners.

     The spokesman said these procedures were the same as
those applicable to the determination of minimum terms for
discretionary life prisoners and Executive discretion
prisoners.

     The Criminal Procedure (Amendment) Bill 1998 will be
introduced into the Provisional Legislative Council on
January 21.

End


11. Labour Department Performance Pledge for 1998
    *********************************************

     The Labour Department will continue to improve the
quality of services offered to the public by adding five
new pledges on performance standards to its Performance
Pledge 1998.

     A spokesman for the department said today (Thursday)
that the five additional pledges are under the service
areas of careers guidance to young people, employees'
compensation, administration of the importation of labour
schemes and registration of trade unions.

     "Other services already covered in 1997 are also
included in the Performance Pledge 1998," he said.

     "These include employment services for able-bodied
and disabled job-seekers, conciliation of labour disputes,
promotion of labour relations, adjudication of minor
employment claims, protection of wages on insolvency,
registration of pressure equipment, occupational safety,
licensing of employment agencies, attestation of contracts
for employment outside Hong Kong, as well as the General
Enquiry Telephone Service.

     "We will continue to provide an efficient, courteous
and professional service to our customers in a clean and
friendly environment," he stressed.

     Reviewing the department's performance in 1997, the
spokesman noted that on average, over 99 per cent of all
the cases handled met the pledged standards.

     "No complaint on non-fulfilment of pledges has been
received in 1997.  Nevertheless, we welcome any comments
or suggestions on the services we provide," he added.

     Copies of a bilingual booklet on the Performance
Pledge for 1998 are available for collection at all the
district offices of the Labour Department and Home Affairs
Department.

     Information about the performance pledge can also be
obtained in the department's Home Page which is accessible
through the Government Information Centre on the Internet
or at the web site address: http://www.info.gov.hk/labour.
The e-mail address is: laboureq@labour.gcn.gov.hk.

End


12. Subsidiary legislation on anti-smoking to be amended
    ****************************************************

     To further counter the health hazards of smoking, the
Government proposes to table the Smoking (Public
Health) (Amendment) Regulation 1998 at the Provisional
Legislative Council on January 21.

     The regulation is made subsequent to the enactment of
the Smoking (Public Health) (Amendment) Ordinance 1997 in
June last year.

     The proposed Smoking (Public Health) (Amendment)
Regulation 1998 provides reference for manufacturers to
designate the tar and nicotine yields of their tobacco
products; outlines the procedure by which the Government
Chemist determines the tar and nicotine yields in
cigarettes; and provides detailed requirements as to how
tobacco advertisements and health warnings are shown in
printed publication.

     A spokesman for the Health and Welfare Bureau said
stronger health warnings detailing more specific tobacco
related diseases are also introduced.

     "We hope to catch the attention of both smokers and
non-smokers and to better inform them of the health
hazards of smoking," he added.

     Under the Smoking (Public Health) (Amendment)
Ordinance 1997 which was enacted in June last year, the
display of tobacco advertisements and tobacco
advertisements in printed publications will be banned with
effect from June 26, 1999 and December 31, 1999
respectively.

     Other new measures to be introduced under the
Amendment Ordinance include prohibition of placing tobacco
advertisements on the Internet, lowering the maximum tar
yield in cigarettes to 17 milligrams, and requiring
cigarette packets to display the tar and nicotine yield.

End


13. Eligible electors reminded to beat Friday deadline
    **************************************************

     More than half a million (528,000) voter registration
forms for geographical constituencies for the 1998
Legislative Council elections have been received on the
eve of the conclusion of a voter registration exercise.

     The Registration and Electoral Office's assessment is
that about half of them are new electors.  The remaining
forms are mainly reports of change of residential address.

     As for the 28 functional constituencies, the office
has, on the basis of information available, sent
notifications to about 123,000 eligible individuals and
about 3,800 eligible bodies informing them that they have
been registered by notification.

     Appeal letters and application forms have been sent
to 56,000 eligible individuals and 46,000 eligible bodies
inviting them to sign up as electors.

     About 13,500 new applications have been received from
7,000 individuals and 6,500 bodies up to yesterday
(Wednesday).  About 6,400 of these corporate electors have
appointed their authorised representatives.  Staff of the
office are contacting the other 100 to finalise the
appointment of their authorised representatives.

     The Registration and Electoral Office will stay open
up to midnight tomorrow (Friday) to receive last-minute
application forms from eligible electors.

     Any Hong Kong permanent resident aged 18 and above
who ordinarily resides in Hong Kong is eligible to
register as an elector for a geographical constituency.

     It is important for corporate electors for functional
constituencies and the Election Committee subsectors to
appoint an authorised representative by tomorrow (Friday)
in order to vote in the elections, a spokesman for the
office said.

     Completed forms should reach the office on the 10th
floor, Guardian House, 32 Oi Kwan Road, Wan Chai by
midnight tomorrow (Friday).  "Late applications will not
be processed," the spokesman said.

     Interested parties are requested to call the hotline
2891 1001 to check their eligibility for registration or
make enquiries by fax to 2891 1180.

End


14. Another batch of Language Fund projects approved
    ************************************************

     The Director of Education and Trustee of the Language
Fund, Mrs Helen C P Lai Yu, has approved funds totalling
$6.45 million for the second batch of nine projects from
the fifth call for applications to the Language Fund.

     This brings the total number of approved Language
Fund projects to 134 since the Fund was established in
1994.

     All these projects meet the criteria set by the
Standing Committee on Language Education and Research
(SCOLAR) for allocation of the Language Fund.  SCOLAR will
closely monitor the progress of project implementation and
identify effective ways in disseminating the outcomes
arising from these undertakings.

     Of the three priority research projects recommended
in this batch, one aims to investigate factors that are
likely to correlate with success or failure of Hong Kong
primary school children, including new immigrant children,
in learning the English language.

     A second Chinese project will produce a set of CD
ROMs to facilitate the acquisition of Chinese characters
by primary 1 to 3 children.

     The third research project investigates the English
language proficiency required of tertiary students of
business studies in relation to the English and
communication skills courses currently offered by the
universities.

     Other successful projects involve the production of
materials to enhance the quality of teacher education for
English language teachers; the investigation of
implementation of Target-Oriented Curriculum with a view
to disseminating good practices for primary teachers; the
development of computer-assisted software for Chinese
language learning; the production of a self-access
learning package to improve primary students' Chinese
writing; and the study and promotion of Putonghua for
primary students.

     Initial processing of the applications received
during the fifth call has been completed.  Over 80 per
cent of the recommended projects fall within SCOLAR's
priority, the primary sector.

     Details of the sixth call will be announced shortly.

End


15. Air quality report for December released
    ****************************************

     The Environmental Protection Department today
(Thursday) released air quality information for December
1997.

     The report showed that all measurements recorded in
the month had complied with the air quality objective
values.

     Through out the 1997, the particulate concentrations
have been maintaining at high levels.

     The annual averages of respirable suspended
particulates recorded at the three stations ranged from 53
ug/m3 to 77 ug/m3.  The annual AQO is 55 ug/m3.

     For nitrogen dioxide, the annual averages were also
high and ranged from 50 ug/m3 to 86 ug/m3.  The annual AQO
is 80 ug/m3.

     The report includes the monitoring results from Mong
Kok, Central/Western and Kwai Chung, which represent three
important land use types in the territory:

     *  locations close to road traffic in built-up urban
areas,

     *  combined commercial and residential districts, and

     *  districts close to industrial areas.

     Air pollutants reported sulphur dioxide, nitrogen
dioxide, total suspended particulates, and the respirable
suspended particulates.  All these pollutants can affect
respiratory health in sufficient concentration.

     Air pollution originated from various sources,
including combustion, industrial and construction
processes.  In terms of impact on local air quality, motor
vehicle exhaust is the most important source of nitrogen
dioxide and airborne particulate matter, especially the
smaller respirable particles.

End


16. Amusement rides fees to be revised
    **********************************

     Fees payable under the Amusement Rides (Safety)
Ordinance and the Amusement Rides (Safety) (Operation and
Maintenance) Regulation will be revised on March 9, 1998,
subject to the approval of the Provisional Legislative
Council.

     "It is Government policy that fees should in general
be set at levels sufficient to recover the full cost of
providing the services concerned," a spokesman for the
Broadcasting, Culture and Sport Bureau said.

     "Most of the fees were last revised in March 1997.
To recover the full cost of the services at 1997-98
prices, we propose to increase the fees by about seven per
cent in accordance with the Government Consumption
Expenditure Deflator movement from 1996-97 to 1997-98 with
the exception of the fees for approval to commence or
resume operation of Categories A and B amusement rides.

     "For the exceptions, they are to be revised at rates
applicable to the second phase of a three-year phasing-in
cost recovery programme," he added.

     The Amusement Rides (Safety) (Fees) (Amendment)
Regulation 1998 on the fee revision will be published in
the Gazette tomorrow (Friday) and tabled in the
Provisional Legislative Council on January 21, 1998.

     Details of the existing and proposed fees are as
follows :-

Item Description                        Existing  Proposed
                                         fee($)     fee($)

(1)  Fee for the designation by name      385        412
of persons who may exercise powers
conferred by sections 19 and 20
of the Ordinance

(2)  Fees for the approval of a person as -

(a)  a surveyor                         5,100      5,455
(b)  a competent person                 2,765      2,960
(c)  a qualified person                 1,155      1,235

(3)  Fees for an amendment to a limited certificate of
approval held by -

(a)  a surveyor                         5,100      5,455
(b)  a competent person                 2,765      2,960
(c)  a qualified person                 1,155      1,235

(4)  Fees for approval under section 10 of the Ordinance
for commencement of operation of an amusement ride in -
(Note)

(a)  Category A                           200        226
(b)  Category B                           355        412
(c)  Category C                         2,825      3,025
(d)  Category D                         5,410      5,790

(5)  Fees for permission under section 15 of the Ordinance
to resume operation of an amusement ride in - (Note)

(a)  Category A                           200        226
(b)  Category B                           355        412
(c)  Category C                         2,825      3,025
(d)  Category D                         5,410      5,790

Note:

An amusement ride in -

(a)  Category A means any amusement ride which is
permitted to carry not more than 2 persons;

(b)  Category B means any amusement ride which is
permitted to carry not more than 5 persons;

(c)  Category C means any amusement ride which is
permitted to carry not more than 20 persons; and

(d)  Category D means any amusement ride which is
permitted to carry 21 or more persons.

End


17. Election petition rules to be gazetted
    **************************************

     Rules governing matters related to the practices and
procedures for the lodgement, trial and termination of
election petition in respect of a Legislative Council
election will be gazetted tomorrow, a government spokesman
said today (Thursday).

     The Legislative Council (Election Petition)Rules have
been made by the Chief Justice of the Court of Final
Appeal.

     "As stipulated in the Legislative Council Ordinance,
an election petition may be lodged with the Court of First
Instance of the High Court within two months following the
publication of the result of the election," the spokesman
said.

     The Rules will be tabled in the Provisional
Legislative Council next Wednesday (January 21).

End


18. Cheung Shang Tsz declared a historical building
    ***********************************************

     Cheung Shang Tsz, commonly known as Cheung Shan Kwu
Tsz at Wo Keng Shan of Ping Che, Fanling, will be declared
a historical building under the Antiquities and Monuments
Ordinance.

     A notice to this effect will be published in the
Government gazette tomorrow (Friday).

     Cheung Shang Tsz was most probably constructed in
1789 and was demolished and rebuilt in full in 1868 when
it became decrepit.

     The original building was a joint effort by six
villages in Ta Kwu Ling area, namely Loi Tung, Man Uk Pin
and the alliance, Ping Yuen Hap Heung which consisted of
Ping Yeung, Nga Yiu Ha, Wo Keng Shan and Ping Che.

     The union of these six villages laid down a precedent
for the establishment of Yeuk, a mutual defence and inter-
village alliance.

     The building was formerly called Cheung Sang Nunnery
as these Chinese characters were inscribed on a bronze
bell cast in 1789.  It served as a nunnery until the last
abbess died in 1944, leaving the nunnery unoccupied.

     In 1949, a monk known as Kuk Shan Kit together with a
dozen disciples fled from Luo Fu Shan and settled in the
vacant Cheung Shang Tsz.  Since then, the nunnery was
changed into a house of monks.

     The building was once a resting place to provide
services, in particular free tea, to wayfarers on their
journey to Shenzhen via Sha Tau Kok, since the building
was situated in Miu Keng (Temple Pass), a halfway point of
this long deserted route.

     The building is a two-hall structure with two
internal courtyards.  It was constructed on two platform
with the rear one about one meter above the front.  The
rear section consists of living halls and cocklofts.

     Buddha, Kwun Yum and Tei Chong Wong (King of the
Hell) are worshipped in the monastery.  Other deities like
Wei To (Defender of the Way) and To Tei (Earth God) are
also worshipped there.

     The existing structures were believed to have been
fully rebuilt in 1868 as recorded in a wooden plaque, the
inscription of which is almost illegible.  Part of its
roof and many of its fittings were most unfortunately
destroyed in a fire in the early 1920s.

     A rescue repair was then carried out to prevent
further deterioration.  The latest renovation took place
in 1949 after the arrival of Kuk Shan Kit.

End


19. Six commended for bravery in marine incidents
    *********************************************

     The Director of Marine, Mr Ian Dale, today (Thursday)
presented his commendation to six people for their bravery
acts during marine incidents.

     Speaking at a certificate presentation ceremony,
Mr Dale said all the recipients had illustrated a high
standard of bravery and initiative by risking their own
safety in the rescue of others' lives.

     Two civilians, Mr Chan Chat-shum and Mr Ho Shu-wing,
while working inside the Western Wholesale Food Market,
dashed to the quayside in response to an alarm raised by
onlookers and plunged into the sea to rescue a 73-year-old
woman on May 1, 1997.

     At 8.45 pm on April 25, 1997, a distraught woman was
seen jumping into the harbour off Tsim Sha Tsui promenade,
clutching her two-year-old son.  Mr Apostolos Nikolaos
Samars, a sailor of the Cho Yang Express who was in the
vicinity, promptly rescued the pair with the assistance
from firemen attending the scene.

     Mr Lau Yuk-keung, a diver and pontoon sailor from
CTS-Parkview Ferry Services Limited, saved the life of a
female passenger who accidentally fell into the sea on
March 24, 1997.

     Another sailor from the same company, Mr Po Shu-fai,
was commended for putting off a fire in the engine room of
vessel "MK2003" on August 7, 1996.

     The sixth awardee, off-duty Police Station Sergeant
Yam Chi-kwong, risked his own life by jumping into the sea
from Sai Wan Ho pier to save an elderly man from drowning
on October 7, 1997.

End


20. Index of industrial production for third quarter of 1997
    ********************************************************

     The index of industrial production for the third
quarter of 1997 increased slightly, by 0.5% over the same
quarter in 1996, according to the results of a survey
released today (Thursday) by the Census and Statistics
Department.

     Analysed by industry group, output of the textiles
(including knitting) industry and the paper products and
printing industry increased by 5.3% and 3.6% respectively.

     A slight increase of 0.7% was registered in the
output of the industry group of electrical and electronic
products, machinery, professional equipment and optical
goods.  Within this group, output of the machinery,
equipment, apparatus, parts and components industry
increased by 14% whereas output of the consumer electrical
and electronic products industry decreased by 11.3%.

     However, output of the basic metals and fabricated
metal products industry and the food, beverages and
tobacco industry decreased, by 7.4% and 4.5% respectively.

     Slight decreases in output were also recorded in the
wearing apparel (except footwear) industry (-1.5%) and the
chemical, rubber, plastic and non-metallic mineral
products industry (-0.4%).

     Compared with the second quarter of 1997, the index
of industrial production showed a notable increase of
11.8%.  This increase was, however, partly seasonal as
manufacturing activities usually entered into peak season
in the third quarter.

     The index of industrial production reflects changes
of local manufacturing output in real terms.  In other
words, it measures the volume of local production after
discounting the effect of price changes.

     More detailed information can be obtained from the
"Quarterly Index of Industrial Production, 3rd Quarter
1997" report, which is on sale at $9 a copy at the
Government Publications Sales Centre, ground floor, Low
Block, Queensway Government Offices, 66 Queensway, Hong
Kong, or at the Census and Statistics Department
Publications Unit, 19th floor, Wanchai Tower, 12 Harbour
Road, Wan Chai.  Regular subscription may also be
arranged.

     Enquiries about the survey results may be directed to
the General Economic Surveys Section of the Census and
Statistics Department on 2805 6643.

     The annexed table shows the percentage changes in the
indices of industrial production.  As from the first
quarter of 1992, the Hong Kong Standard Industrial
Classification (HSIC) is used to form the industry groups
and component industries.

End


21. New traffic management scheme in Kennedy Town
    *********************************************

     The Transport Department today (Thursday) announces a
new traffic management scheme to be implemented in Kennedy
Town from Sunday (January 18) onwards.

     Speaking on the plan, a spokesman for the department
said: "The scheme, known as the Kennedy Town Traffic
Management Measures Stage Three, will help improve traffic
conditions in the Western District.

     "The measures will address the traffic demand arising
from the redevelopment of Kennedy Town.

     "It also enhances smooth operation of local road
network following the opening of Western Harbour Crossing,
Belcher Bay Link and the Smithfield Extension."

     The key elements of this scheme comprise:

     *  Re-routing of the section of Queen's Road West
between Kennedy Town Praya and Hill Road to one-way
westbound;

     *  Re-routing of the section of Belcher's Street
between Queen's Road West and Sands Street to one-way
westbound;

     *  Re-routing of Collinson Street to one-way
eastbound;

     *  Prohibition of left-turning movement for vehicles
exceeding eight metres in length from Kennedy Town Praya
onto Collinson Street;

     *  To establish signalised crossings at the junctions
of Kennedy Town Praya/ Holland Street, Kennedy Town Praya/
Collinson Street, Kennedy Town Praya/ Queen's Road West
and Belcher's Street/ Sai Cheung Street.

     *  Improvement of pedestrian crossing facilities at
road junctions; and

     *  Adjustment of clearways restrictions to regulate
kerbside activities.

     Moreover, Citybus routes no.5, 5A, 5B, 5X, 10X, 47A,
CMB routes no.10, 18 and Cross Harbour Tunnel (XHT) routes
no.101, 104, 113 and 904 will have to be diverted.

     Bus stops for these routes on the eastbound lanes of
the affected sections of Belcher's Street and Queen's Road
West will be suspended.  Replacement stops will be
provided on Kennedy Town Praya and Des Voeux Road West.

     The spokesman reminded motorists to pay attention to
the special arrangements in Kennedy Town and follow the
instructions of the traffic signs and markings along the
roads.

     A review of the new scheme will be carried out later
this year.

End


22. New Tsz Wan Shan Post Office to open on Monday
    **********************************************

     The Postmaster General, Mr Robert Footman, announced
today (Thursday) that a new Tsz Wan Shan Post Office
located at Shop 330, third floor, Tsz Wan Shan Shopping
Centre, 23 Yuk Wah Street, Tsz Wan Shan, Kowloon, will
open at 2.15 pm on Monday (January 19).

     This office will replace the existing post office on
the second floor of the Administration Building of Tsz Lok
Estate, 44 Wan Wah Street, Tsz Wan Shan, which will close
for business at 1 pm the same day.

     Tsz Wan Shan Post Office is the first post office
designed to reflect the new corporate identity of Hongkong
Post.  If the design is welcomed by both customers and
staff, Hongkong Post will adopt it for new post offices
and renovation of existing post offices in future.

     The business hours and telephone number of the new
office will be the same as those of the existing office.

     A special handback service will be provided at the
new Tsz Wan Shan Post Office on Monday.  Privately
prepared unregistered covers which bear the wording "First
Day Cover", a local address and full postage will be
accepted over the counter, impressed with the normal post
office datestamp and handed back to the customers
presenting them.

End




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