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

Tuesday, January 6, 1998 CONTENTS ======== 1. Transcript of Chief Executive's media session 2. Transcript of CS's media session 3. Second day of CS's Beijing visit 4. ExCo approves rent adjustments in public housing 5. SHA's response to Code on Access to Information 6. Response to enquiries on Ombudsman's remarks 7. Acting CS to co-ordinate follow-up action 8. Health chiefs brief consuls general on H5N1 9. Update on avian flu 10. Additional member to Appeals Committee on MOI Guidance 11. ExCo approves cancellation of three HYF routes 12. Ex-gratia payments for Yaohan employees completed 13. Environmental Protection Liaison Group to meet in Guangzhou 14. HK Mortgage Corporation HK$20 Billion Note Issuance Programme 15. Hong Kong Monetary Authority tender results 1. Transcript of Chief Executive's media session ********************************************* Following is a transcript of the Chief Executive, Mr Tung Chee Hwa's media session after visiting some fire victims at Ruttonjee Hospital this (Tuesday) evening: Reporter: Mr Tung, you have visited the patients in the hospital ... what would ...? Mr Tung: I think there were a number of things you can see right away. First is that obviously the shock. Secondly, many of them are suffering from very dense smoke inhalation but they all look all right and they will eventually be all right. End 2. Transcript of CS's media session ******************************** Following is a transcript of the Chief Secretary for Administration, Mrs Anson Chan's media session in Beijing this (Tuesday) evening: Reporter: (about the SAR Office in Beijing) CS: We are currently considering within the administration the size of Beijing office, the responsibilities of this office and of course, the question of personnel. When I met Mr Liao Hui, the Director, he stressed to me that under the Basic Law, of course the Special Administrative Region Government is entirely free to decide on its own the purpose of this office, its responsibilities, how it will operate. They will not, the Hong Kong and Macau Affairs Office, will not interfere in any way. But if we request help in any respect, they would be very very happy to offer help, for example, in helping us locate suitable premises. Reporter: Do you find difficulties in tackling the H5N1 ...? CS: I am not sure where you got that impression. I think on the avian flu, what I would say which I've said before in Hong Kong is that we accept that there are of course areas which can be improved. But against the background that this is an entirely new flu bug which no other country has experienced, in the face of very scarce information as to the origin of the avian flu and its transmission, and also against the background that internally our resources whether in the Health Department or in the Agriculture and Fisheries Department are very limited, we are doing our best to cope with the situation. But as with any other big-scale operation, we will as soon as possible be conducting a thorough review of the way we've gone about this task, the questions specifically of co-ordination between government departments and also with the Urban Council and the Regional Council, in an attempt to see what lessons we can learn from the current experience and to make sure that next time round if we have to repeat the same operation, that there will be many areas which we can do better. End 3. Second day of CS's Beijing visit ******************************** The Chief Secretary for Administration, Mrs Anson Chan, today (Tuesday) met with Vice-Premier Qian Qichen at Diaoyutai State Guesthouse. The Director of the Hong Kong and Macau Affairs Office, Mr Liao Hui, also attended the meeting. Mr Qian welcomed the visits of senior officials of the SAR government to Beijing. He said this would effectively enhance the communication between the central government and the SAR. Vice-Premier and Mrs Chan also discussed the operation of the SAR government and the civil service since the handover. Vice-Premier said the civil service had achieved a stabilising effect in the transition period, and praised the SAR officials in handling the financial turmoil properly. After the meeting, Vice-Premier and Mrs Qian hosted a dinner at Diaoyutai State Guesthouse for Mrs Chan. Before meeting with Mr Qian, Mrs Chan had an 80- minute talk with the Director of Hong Kong and Macau Affairs Office of the State Council, Mr Liao Hui. They exchanged views on the development of the SAR since its establishment six months ago. In the meeting, Mr Liao reiterated that under the "one country, two systems" principle, the Hong Kong and Macau Affairs Office definitely would not interfere with the affairs of the SAR. On the establishment of the HKSAR office in Beijing, Mrs Chan said: "I expressed to the Hong Kong and Macau Affairs Office our wish to set up the HKSAR office in Beijing as early as possible. Director Liao said that, according to the Basic Law, the establishment of the HKSAR office and its scope of work would be decided by HKSAR Government. The Hong Kong and Macau Affairs Office would offer practical assistance when necessary." "In order to set up the HKSAR office as soon as possible, we are going to rent premises before a permanent location is sought." "The Constitutional Affairs Bureau is actively formulating a proposal on the scope of work and staffing of the office." Earlier today, Mrs Chan paid a courtesy call on National People's Congress Standing Committee Secretary- General, Mr Cao Zhi, at the reception hall of the Great Hall of the People. At the meeting, Mr Cao Zhi briefed Mrs Chan on the functions of the National People's Congress (NPC) as the highest organ of power in China. Mr Cao Zhi said there were five years before the Hong Kong representatives to the NPC would be elected. During this period, the advice of the public will be seriously considered, with a view to making the arrangements of the next election more satisfactory. In the afternoon, Mrs Chan met the Deputy Director of Hong Kong and Macau Affairs Office of the State Council, Mr Wang Fengchao, at his office. Director-General of Department of Social and Cultural Affairs of the HKMAO, Mr Zhao Bingxin; Director-General of Department of Economic Affairs, Mr Zhang Liangdong, and Director-General of Department of Political Affairs, Mr Xu Ze, also attended. Mrs Chan and Deputy Director Wang Fengchao discussed subjects of mutual concern to Hong Kong and the Mainland including avian flu and mainland-born children with right of abode in Hong Kong. Deputy Director Wang expressed his concern on the development of avian flu. Mrs Chan briefed HKMAO officials on the latest situation in Hong Kong and thanked the Guangdong authorities for their cooperation on assisting the SARG in improving the control system for chickens imported from the Mainland. In addition, Mrs Chan and Mr Wang also exchanged views on the operation of "Certificate of Entitlement Scheme" for the past six months. They both considered that the scheme operated well and agreed that the Hong Kong people's children who were eligible to right of abode should come to Hong Kong as soon as possible. Mrs Chan will meet Vice Minister of Foreign Ministry, Mr Wang Yinfan, this morning, and will return to Hong Kong in the afternoon. End 4. ExCo approves rent adjustments in public housing ************************************************ The Chief Executive in Council today (Tuesday) decided to accept the limit, which was the key provision in the Housing (Amendment) Ordinance 1997, that rents for public housing should be capped at 10% median rent to income ratio (MRIR). It also decided to withdraw the proposal to replace the three-year rent review cycle prescribed by the Amendment Ordinance by a two-year one. However, in order to minimise the operational difficulties and legal ambiguities created by the implementation of the Amendment Ordinance, the Housing (Amendment) Bill 1998 will be introduced to: - provide for a clear definition of the MRIR and to allow the Housing Authority (HA) to maintain its practice of determining the MRIR of public rental housing (based on sample surveys); - exclude from the three-year rent review arrangement better-off tenants who are required to pay additional or market rent and beneficiaries of the Rent Assistance Scheme; and - exclude from the scope of the Amendment Ordinance licence fees charged in respect of cottage areas and interim housing. A government spokesman said the Administration's approach represents a pragmatic way forward to deal with specific problems, while respecting the spirit of the Amendment Ordinance enacted by the previous Legislative Council. The capping of MRIR at 10 percent will keep public housing rents at levels generally below tenants' ability to pay. "The proposal to reinstate the two-year rent review cycle is withdrawn because it is clear that the majority of Provisional Legislative Councillors will not support the proposal. "However, the technical amendments to the Amendment Ordinance are essential and should be introduced into the Provisional Legislative Council early," the spokesman said. "The Housing (Amendment) Bill 1998 will be published in the Gazette on January 9 (Friday)," the spokesman added. End 5. SHA's response to Code on Access to Information *********************************************** In response to media enquiries, the Secretary for Home Affairs, Mr David Lan, said today (Tuesday) the Government is committed to the promotion of open and accountable government through the implementation of the Code on Access of Information. He said every effort has been made by government departments and agencies under the Code to comply with its provisions of the Code and to make available to the public as much information as possible. Referring to a recent application made by a press member under the Code, Mr Lan noted that a working level internal memo was sent to front-line Access to Information Officers urging them to meet the requests as far as possible. "The memo was meant to remind departments of their obligation to process the requests expeditiously. In fact, the Home Affairs Bureau, which has policy responsibility for the Code, issued the memo to departments and agencies reminding them of the importance of complying with the Code's requirements," Mr Lan said. "There is absolutely no question of attempting to withhold any information that the public has the right of access under the Code. In fact, departments are reminded to follow the "Guidelines for Departments" of the Code for detailed guidance," he added. Mr Lan said he understands the concerns of the Hong Kong Journalists Association over this case and freedom of information in general. He looks forward to an opportunity to discuss the matter with the Association. End 6. Response to enquiries on Ombudsman's remarks ******************************************** In response to press enquiries concerning the Ombudsman's remark yesterday that his office would draw up guidelines for Government departments concerning the payment of compensation to members of the public who have sustained injustice as a result of maladministration, a spokesman for the Administration Wing of the Chief Secretary's Office said today (Tuesday) that the Government had just received the Ombudsman's proposal today. The spokesman said the Government noted the Ombudsman's wish to seek the Administration's view on his proposed guidelines and shall study the proposal taking account of relevant implications. He noted that any mechanism for compensation, if established, must be fair and transparent since taxpayers' money is involved. Under Hong Kong law, any person can seek redress and compensation through the courts by means of a civil suit if the case so warrants, the spokesman added. End 7. Acting CS to co-ordinate follow-up action ***************************************** In response to media enquiries, a government spokesman said today (Tuesday) that the acting Chief Secretary would be co-ordinating follow-up action to be undertaken by relevant bureaux and departments to strengthen protection of public health against the avian flu. This follows a meeting chaired by the Chief Executive, Mr Tung Chee Hwa, this afternoon to review latest developments on matters relating to the avian flu. The meeting was attended by the acting Chief Secretary, the Financial Secretary, the Secretary for Health and Welfare, the Secretary for Economic Services, the Director of Health, the Director of Agriculture and Fisheries, the Director of Urban Services and the Director of Regional Services. At the meeting, Mr Tung asked relevant bureaux and departments to ensure the maintenance of an acceptable level of sanitary conditions of the poultry farms, poultry import and retail outlets. He also asked for a review of the present arrangements for the slaughter of poultry in markets in order to eliminate the risk of contamination. He said that urgent measures were necessary to improve the sanitary conditions before resumption of poultry import. "The Chief Executive reiterated that top priority must be accorded to this exercise for the better protection of public health," he said. End 8. Health chiefs brief consuls general on H5N1 ******************************************* In response to media enquiries, a spokesman for the Health and Welfare Bureau said the Secretary for Health and Welfare, Mrs Katherine Fok, had briefed representatives of Consuls General in Hong Kong this (Tuesday) afternoon on the latest situation on Influenza A H5N1 and the measures taken by the Government to prevent the spread of the virus. Also attended the briefing were the Director of Health, Dr Margaret Chan; the Deputy Secretary for Health and Welfare, Mr Gregory Leung; and Dr L D Sims, Senior Veterinary Officer, Agriculture and Fisheries Department. During the briefing, Mrs Fok assured the representatives that it was safe for overseas visitors to come to Hong Kong. She said that since the virus was predominately transmitted from bird to man, avoiding contact with live poultry would minimise the chance of getting the disease. "The chance for a tourist catching bird flu therefore is minimal," she added. Mrs Fok also told the meeting that the World Health Organisation had repeatedly stressed that the present cluster of cases in Hong Kong was not at the scale of epidemic. And she was glad to note that so far, no countries had posed travel restrictions or quarantine measures on Hong Kong travellers. In the meantime, the Secretary said, efforts were being made to devise a surveillance system aimed at ensuring that the poultry imported to Hong Kong in future will be free from the virus infection. The consuls general who were represented at the meeting included Australia, Britain, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand, Norway, the Philippines, Singapore, Thailand and the USA. End 9. Update on avian flu ******************* The Department of Health (DH) announced today (Tuesday) that for the third day running, there was no new case of influenza A (H5N1) today. Moreover, Case 3 of yesterday's suspected case list, involving a three-year-old boy, has been deleted from the list. This brings down the total number of cases to 16 confirmed cases and three 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: Under treatment, condition critical Case 14 Sex / Age: Female / 14 yr Condition: Under treatment, condition satisfactory Case 15 Sex / Age: Male / 3 yr Condition: Under observation, condition satisfactory Case 16 Sex / Age: Female / 19 yr Condition: Under treatment, condition critical Suspected cases *************** Case 1 Sex / Age: Female / 3 yr Condition: Recovered and discharged Case 2 Sex / Age: Male / 6 yr Condition: Recovered and discharged Case 3 Sex / Age: Male / 7 yr Condition: Recovered and discharged End 10. Additional member to Appeals Committee on MOI Guidance ****************************************************** The Secretary for Education and Manpower, Mr Joseph W P Wong, has appointed Mr Benjamin Yu, as a member of the Appeals Committee (Medium of Instruction Guidance), the Government announced today (Tuesday). Mr Yu, a law graduate of Hong Kong University with distinction (1979), received his LL.M. from London University in 1980. He was admitted to the Hong Kong Bar in 1979 and the Inner Bar in 1995. He was appointed as Senior Counsel in 1997. Mr Yu has served as a member and Hon Secretary of the Bar Committee. At present, he is the Deputy Chairman of the Board of Review (Inland Revenue); an External Examiner in Professional Conduct (HKU and CityU), as well as a member of the Consumer Council and Insurance Advisory Council. Mr Wong said: "The inclusion of Mr Benjamin Yu on the Appeals Committee chaired by the City University President, Professor H K Chang, would broaden the perspective of the Committee in considering appeals from a number of secondary schools on the medium of instruction. "We are very pleased that Mr Yu has agreed to join the Appeals Committee. At the same time, I would like to extend my heartfelt thanks to Professor H K Chang and Professor Amy Tsui, who as the Chairman and member of the Appeals Committee, worked hard over the Christmas and New Year holidays to ensure that an additional member could be identified early in the new year." According to Professor Chang, the Appeals Committee has decided to recommend Mr Yu as a member of the Appeals Committee following thorough consideration over the past two weeks. Both he and Professor Tsui were seeking an informed and independent voice outside the education sector for the Appeals Committee. "Mr Yu is highly respected in Hong Kong. Professor Tsui and I met with him over the holidays and are pleased that he is willing to share this task with us. We are confident that our efforts will be well aided by his excellent counsel and judgement, and in particular, noted objectivity," Professor Chang said. End 11. ExCo approves cancellation of three HYF routes ********************************************** The Executive Council today (Tuesday) approved the cancellation of three franchised routes of Hongkong and Yaumati Ferry Company Limited (HYF). The three routes to be cancelled are North Point - Kowloon City vehicular ferry service with effect from January 28, 1998; Central - Jordan Road passenger ferry service with effect from February 2, 1998; and Central - Tsuen Wan via Tsing Yi passenger ferry service (both ordinary and hoverferry services) by September 1998. A government spokesman said members noted that HYF had been incurring heavy losses from its franchised services since 1994. The three routes to be cancelled were heavily loss- making and there was no prospect of improvement in the longer term, he added. "In approving the cancellation, members were satisfied that alternative land transport was readily available to the travelling public. Commuters may take MTR and cross-harbour buses, and vehicles may make use of the three cross-harbour tunnels," the spokesman said. "The Government will tender out the Central - Tsuen Wan via Tsing Yi route as a licensed service shortly. The North Point - Kowloon City vehicular service and the Central - Jordan Road passenger service will not be tendered out because replacement ferry services are not considered to be commercially viable." End 12. Ex-gratia payments for Yaohan employees completed ************************************************* The Labour Department has completed sending out ex- gratia payments from the Protection of Wages on Insolvency Fund to 2,793 former employees of Yaohan Department Stores (HK) Limited. A spokesman for the Labour Department said today (Tuesday): "The total payout is over $67.6 million. It includes arrears of wages, wages in lieu of notice and severance payment. "The last batch of cheques have been sent to eligible employees last Friday (January 2)," the spokesman added. The Commissioner for Labour, Miss Jacqueline Willis, today paid tribute to officers of the department's various divisions, particularly those at the Wage Security Unit who had to work overtime during the Christmas and New Year holidays in possessing the applications. "Through joint efforts and good team spirit, I am very pleased to say that the payments are able to be sent out to the employees before January 7 as we have promised," Miss Willis added. End 13. Environmental Protection Liaison Group to meet in Guangzhou *********************************************************** A Hong Kong delegation led by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, will depart for Guangzhou today (Tuesday) to attend the eighth meeting of the Hong Kong-Guangdong Environmental Protection Liaison Group meeting to be held tomorrow (Wednesday). The meeting, the first since the return of Hong Kong's sovereignty, will look at environmental matters in the Pearl River Delta Region, particularly the air and water pollution problems. Topics to be discussed will include the Report of the Stage 1 Phase 2 Study on the Environmental Protection of Mirs Bay, the review outcome of the Deep Bay Action Plan, the Deep Bay Water Quality Regional Control Strategy, and the progress of the study on the conservation of the Chinese white dolphin and the exchange of information on the air quality in the Pearl River Delta. Both sides will also exchange information on topics of mutual interest. The Guangdong side will introduce the establishment of the National Environmental Protection Model Cities, the implementation of the Total Amount Control of Major Pollutants Discharge Scheme and the Sewage Discharge Registration Scheme, while the Hong Kong side will introduce the Stonecutters Island Sewage Treatment Works and the Consultancy Study on Sustainable Development for the 21st Century. Following the meeting, the Hong Kong delegation will spend one-and-a-half days visiting some sewage treatment and waste disposal facilities in Panyu and Shenzhen on January 8 and 9. Members of the Hong Kong delegation include the Director of the Environmental Protection, Mr Rob Law; the Director of Drainage Services, Mr John Collier; and government officials from Environmental Protection, Drainage Services, Agriculture and Fisheries, and Planning departments. End 14. HK Mortgage Corporation HK$20 Billion Note Issuance Programme ************************************************************* The Hong Kong Mortgage Corporation Limited (HKMC) announced today the signing of a HK$20 billion Note Issuance Programme arranged by the Hong Kong Monetary Authority (HKMA). The Programme will allow the HKMC to issue notes with a denomination of HK$50,000 and maturities of up to 10 years. Depending on market conditions, the first issue is likely to be launched in the first quarter of 1998. This is the third note issuance programme for which the HKMA acts as the arranger, agent and operator for the issuer after similar note issuance programmes by the Mass Transit Railway Corporation and the Airport Authority. The Programme will be covered by the existing market-making arrangements for Exchange Fund Bills and Notes. At today's signing ceremony, Mr Donald Tsang, Chairman of the HKMC, said: "This Note Issuance Programme is very important to the HKMC in raising funds to support its mortgage purchase programme. I am confident that this Note Issuance Programme will benefit from the successful track record of the Exchange Fund Bills and Notes Programme and will also help to provide a useful benchmark for other debt securities the HKMC will issue in future." Mr Joseph C K Yam, Chief Executive of the HKMA, said, "The Note Issuance Programme should enable the HKMC to borrow Hong Kong dollar funds at a lower cost. This is achieved through the market making arrangements and the eligibility for LAF which together ensure a high degree of liquidity and therefore enhance the attractiveness of the paper in the secondary market, enabling the paper to be more finely priced." Under the HKMC Note Issuance Programme, notes will be sold from time to time by tender to a group of appointed recognised dealers and market-makers. By extending the existing market-making arrangement of the Exchange Fund Paper Programme to these HKMC notes, market-makers are obliged to quote two-way prices for the HKMC notes during money market hours. In return the market-makers can go short in any issues of the Exchange Fund paper or HKMC or Airport Authority or MTRC notes provided they hold sufficient amount of other Exchange Fund paper or HKMC or Airport Authority or MTRC notes in the system to square off their short positions by entering into a repo transaction with the HKMA at the end of the day. Notes issued under the HKMC Note Issuance Programme will be cleared through the Central Moneymarkets Unit and will be eligible for discounting under the Liquidity Adjustment Facility operated by the HKMA. End 15. Hong Kong Monetary Authority tender results ******************************************* Tender date : 6 January 1998 Paper on offer : EF Bills Issue number : Q166 Issue date : 7 January 1998 Maturity date : 4 February 1998 Amount applied : HK$14,920 MN Amount allotted : HK$5,000 MN Average yield accepted : 7.62 PCT Highest yield accepted : 7.90 PCT Pro rata ratio : About 44 PCT Average tender yield : 8.26 PCT - - - - - Tender date : 6 January 1998 Paper on offer : EF Bills Issue number : Q801 Issue date : 7 January 1998 Maturity date : 8 April 1998 Amount applied : HK$6,840 MN Amount allotted : HK$2,000 MN Average yield accepted : 8.62 PCT Highest yield accepted : 8.68 PCT Pro rata ratio : About 50 PCT Average tender yield : 8.92 PCT - - - - - Hong Kong Monetary Authority **************************** Tender to be held in the week beginning - 12 Jan 98: Tender date : 12 January 1998 Paper on offer : EF Notes Issue number : 3101 Issue date : 13 January 1998 Maturity date : 12 January 2001 Tenor : 3 Years Amount on offer : HK$500 + 100 MN Coupon : 9.28 PCT - - - - - Tender date : 13 January 1998 Paper on offer : EF Bills Issue number : Q802 Issue date : 14 January 1998 Maturity date : 15 April 1998 Tenor : 91 Days Amount on offer : HK$2,000 + 500 MN - - - - - Tender date : 13 January 1998 Paper on offer : EF Bills Issue number : H855 Issue date : 14 January 1998 Maturity date : 15 July 1998 Tenor : 182 Days Amount on offer : HK$1,000 + 300 MN End


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