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



Monday, January 12, 1998


CONTENTS
========
1.  Transcript of FS's media session
2.  HKMA press statement
3.  Update on avian flu
4.  Compensation cheques ready for collection
5.  Hong Kong SAR Government functioning well, CS tells US audience
6.  Speech by the Chief Justice
7.  Speech by Secretary for Justice
8.  Unwavering commitment to rule of law
9.  Aid proposed to earthquake victims in Hebei
10. Government committed to completing SSDS project
11. New funding scheme to promote equal opportunities
12. Exhibition to promote employment of the disabled
13. Seminars on 'Pleasurable and Effective Learning'
14. Hong Kong Monetary Authority tender results
15. Water storage figure



1.  Transcript of FS's media session
    ********************************

     Following is a transcript of the media session by the
Financial Secretary, Mr Donald Tsang, at CGO this (Monday)
afternoon:

Reporter: Are you still discounting the Peregrine factor
in today's fall in the market?

Mr Tsang: Well I think it is quite clearly the market
reacted very rationally, very steadily, and reflecting, I
believe, the sophistication and the maturity of Hong Kong
investors.  The settlements were done very efficiently,
the transactions were carried through without any sign of
panic.  So I think it has done quite as we have expected.

End


2.  HKMA press statement
    ********************

     The Hong Kong Monetary Authority (HKMA) wishes to
make it clear that none of the companies in the Peregrine
Group is a bank or deposit-taking company authorised under
the Banking Ordinance.

     On the latest information available to the HKMA,
locally incorporated banks in Hong Kong are not heavily
exposed to the Peregrine Group.

End


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

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

     Moreover, the condition of the 19-year-old woman of
confirmed case 16 has changed from critical to poor.

     The total number of cases remains the same as of
yesterday, with 17 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: Under treatment, condition critical

Case 14
Sex / Age: Female / 14 yr
Condition: Under treatment, condition satisfactory

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

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

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

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

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

End


4.  Compensation cheques ready for collection
    *****************************************

     Poultry farmers, wholesalers and retailers directly
affected by the recent poultry slaughter operation might
collect compensation and ex-gratia payments from today
(Monday), a Government spokesman said today.

     The arrangements for distribution of cheque payments
to the affected parties are as follows:

     *  Chicken Farmers

     Chicken farmers can collect their cheque payments at
the Agriculture and Fisheries Department (AFD)'s District
Agricultural Office (South & East) at Tai Po Government
Offices, 5th floor, Ting Kok Road, Tai Po; and the
District Agricultural Office (West) at Yuen Long
Government Offices and Tai Kiu Market, 5th floor, 2 Kiu
Lok Square, Yuen Long.

     *  Wholesalers

     Wholesalers who have rented stalls from the AFD
should contact the shroff offices of the Cheung Sha Wan
Temporary Wholesale Poultry Market or the Western
Wholesale Food Market to collect their cheques.

     *  Retailers

     Retailers who are tenants of Provisional Urban
Council markets and licensees of fresh provision shops
selling poultry in the urban area may collect their
cheques at 11 Urban District (Environmental Health)
Offices of the Urban Services Department during office
hours from January 12 to 23, 1998.

     Retailers who are tenants of the Provisional Regional
Council markets and licensees of fresh provision shops in
the New Territories and outlying islands may collect their
cheques at nine District (Environmental Health) Offices of
the Regional Services Department during office hours from
January 12 to 23, 1998.

     A letter concerning the above arrangements will be
sent to all affected poultry retailers.  Those who cannot
come during the specified periods should contact the
respective District (Environmental Health ) Office of the
two departments for separate arrangements.

     The spokesman said those market stalls and licensed
fresh provision shops, which were in operation when the
slaughter exercise was being carried out, would be the
first batch to receive the cheques.

     Those market stalls or fresh provision shops which
had suspended business and those shops not holding a valid
licence would be considered at the second stage pending
verifications, he said.

     *  Transport operators

     Wholesale-market based transport operators should
approach the AFD's shroff office of the Cheung Sha Wan
Wholesale Food Market for registration and verification of
their eligibility for ex-gratia payment.

     Those who want to make enquiries concerning the
collection of compensation and ex-gratia payments may
contact the following offices:

Office                                 Telephone No.

Agriculture and Fisheries Department

District Agricultural Office              2654 1126
(South & East)

District Agricultural Office(West)        2476 2424

Cheung Sha Wan Temporary Wholesale        2742 8089
Poultry Market

Western Wholesale Food Market             2803 7008

Cheung Sha Wan Wholesale Food Market      2742 8289

Regional Services Department's District
(Environmental Health) Offices

Islands                                   2852 4546

Kwai Tsing                                2425 5825

North                                     2679 2815

Sai Kung                                  2792 3460

Sha Tin                                   2634 0077

Tai Po                                    2654 1156

Tsuen Wan                                 2412 0629

Tuen Mun                                  2451 3096

Yuen Long                                 2475 3428

Urban Services Department's District
(Environmental Health) Offices

Central                                   2853 2556

Wan Chai                                  2879 5744

Western                                   2853 2522

Southern                                  2552 7156

Eastern                                   2561 3090

Kowloon City                              2711 5721

Kwun Tong                                 2343 3805

Sham Shui Po                              2748 6971

Wong Tai Sin                              2997 9010

Yau Tsim                                  2302 1539

Mong Kok                                  2789 8543

End


5.  Hong Kong SAR Government functioning well, CS tells US audience
    ***************************************************************

     The Hong Kong Special Administrative Region (SAR)
Government is functioning well and apart from the recent
financial turmoil and the occurrence of the avian flu,
business has been as usual, the Chief Secretary for
Administration, Mrs Anson Chan, told the US audience at a
welcoming dinner in Los Angeles this (Sunday) evening (US
time).

     The dinner, which kicked off the first North American
promotion tour, was co-hosted by the Hong Kong Economic
and Trade Office in San Francisco and the Hong Kong
Schools Alumni Federation.

     "We are optimistic in our economic growth, both in
the long and short term," she said.

     "The predicted 1997 GDP growth of 5.5 % has been
sustained.  Although the growth is expected to be lower
this year, we are expecting it to reach four per cent."

     "Definitely there will be a lot of interest when the
Financial Secretary announces his budget speech on
February 18," Mrs Chan said.

     The Chief Secretary also briefed the 200 audience on
her recent trip to Beijing where she had amiable and frank
meetings with the Chinese Vice Premier, Mr Qian Qichen;
and the Director of the Hong Kong and Macao Affairs Office
(HKMAO), Mr Liao Hui.

     Her impression of the trip was that the Chinese
officials she met were fully aware and respected the Basic
Law which gave full autonomy to the Hong Kong SAR.

     She said the HKMAO has taken on a "goal keeper" role
after July 1, 1997 with the good intention of preventing
mainland officials from intervening into Hong Kong
affairs.

     "The HKMAO has done a good job," she said.

     On her meeting with Mr Qian Qichen, Mrs Chan said
Mr Qian had high praise on the performance of the HKSAR
Government in the past six months after the handover, in
particular the role of the civil service in the
Administration.

     At the dinner, Mrs Chan was presented with the 1997
Distinguished Alumna Award by the Hong Kong Schools Alumni
Federation whose members came from 70 Hong Kong
universities and schools.

     During the evening, the Yip's Children Choir in Los
Angeles gave a memorable performance to the 200 guests.

End


6.  Speech by the Chief Justice
    ***************************

     Following is a speech by the Chief Justice, Mr Andrew
Li, at the Opening of the Legal Year today (Monday):

Secretary for Justice, Madam Chairman, Mr President,
ladies and gentlemen,

     On behalf of all my colleagues in the Judiciary, it
is an honour for me to warmly welcome you to the 1998
Opening of the Legal Year.  I thank you for your support
in attending.

The occasion

     This occasion hosted by the Judiciary is an important
event.  It focuses public attention on the administration
of justice and the rule of law.  It provides an
opportunity for us to speak about the challenges which we
face.  Above all, it enables the Judiciary together with
government lawyers, the Bar and the Law Society to
demonstrate to the public that they are united and can
work together in achieving their common goal of serving
the community and maintaining the rule of law.

     For the first time on such an occasion, you see
before you the entire body of judges and judicial
officers.  (I shall refer to them all as judges.)  In
particular, all your magistrates and tribunal judicial
officers are here.  They carry a heavy workload and have
the greatest opportunity of inter-facing with the public.
Each of us, whatever our position in the Judiciary, has an
important contribution to make.

Historic year

     This year is of course a historic year, witnessing
our re-unification with the Motherland and the
establishment of the Hong Kong Special Administrative
Region of the People's Republic of China exercising a high
degree of autonomy under the concept of one country two
systems.

Smooth transition

     The transition to the new order has been a smooth one
for the Judiciary.  All judges remain in office in
accordance with the Basic Law.  The administration of
justice by the courts has continued as before.  The common
law continues to thrive.  The Court of Final Appeal, our
own final appellate court, is established and functioning
with a panel of judges of the highest international
reputation.  Pessimistic predictions on our transition
have proved unfounded.

Expectation of the Judiciary

     An independent Judiciary upholding the rule of law is
a cornerstone of our society. The Judiciary is an
institution of government, the institution that exercises
independent judicial power.  As such, it belongs to and
serves the community by maintaining the rule of law.  In
this new era, what does and what should the community
expect of its Judiciary?

     The community expect and have a right to expect that
their Judiciary has the supreme qualities of independence
with integrity and professional competence.  Let me assure
you that these are and will remain our hallmarks.  The law
must be and will be impartially and competently
administered.

Independence with integrity

     Independence with integrity must be the heart and
soul of your Judiciary.  The Judiciary must be and must be
seen to be impartial.  Everyone is equal before the law.
Judges resolve disputes as between citizens and as between
citizen and state in an impartial manner without fear or
favour.

     The principle of judicial independence is put in
these terms in the Statement of the Principles of the
Independence of the Judiciary subscribed by the Chief
Justices of Asia and the Pacific in Beijing in 1995 and
re-affirmed in Manila in 1997.

     "It is the duty of the Judiciary to respect and
observe the proper objectives and functions of the other
institutions of government.  It is the duty of those
institutions to respect and observe the proper objectives
and functions of the Judiciary."

     Judicial independence is a core element in the
cardinal principle of the separation of powers.  This
involves checks and balances between the Executive, the
Legislature and the Judiciary.  It is not the function of
the Judiciary to meddle in matters which are properly
within the responsibility of the other branches and vice
versa.  But the Judiciary has a vital constitutional role
to ensure that the acts of the Executive and the
Legislature comply fully with the Basic Law and the law,
and that our fundamental rights and freedoms, which
represent enduring values of our society, are fully
protected.  As has been rightly observed, there is no
place in a free society for a supine Judiciary.

     In discharging its duties, the Judiciary has to
pronounce judgments in cases which inevitably by reason of
their subject matter are controversial.  This is
particularly so in the area of constitutional and public
law.  Judges are, as they must be, fearless in applying
the law, irrespective of popular or media acclaim or
criticism.  Their judgments are, as they should be,
subjected to public scrutiny.  The right to criticise the
judgments of the courts is a constitutional right which
should be responsibly and vigorously exercised in a free
society.

     The merits or de-merits of any court decision should
always be discussed in a rational manner.  The use of
political invective for political purposes, calling into
question the judges' independence, has no place in such a
discussion.  Any politician who engages in such invective
will be doing a great disservice in attempting to
undermine public confidence in the rule of law
administered by independent judges who are the ultimate
bastion of liberty and freedom.  Fortunately, the use of
such political invective is not common.

Professional competence

     Apart from the supreme quality of independence, the
community expect and have a right to expect high standards
of professional competence.  Let me assure you that we are
committed to maintaining high standards and to improving
them.  I shall concentrate on three essential aspects.

     First, judges must know the law and appreciate the
law's purpose and spirit.  They should understand the
connection between legal doctrine and its practical
effect.  They should assist in developing the law to meet
the fast changing needs of our society.

     Secondly, judges should have the balanced temperament
to operate the judicial process.  Parties are entitled to
a hearing which is fair and which is seen to be fair.
Judges must function courteously but firmly, deeply
conscious that they are servants of the people and that
courtesy is always owed by those in authority to those who
are affected by it.  Every time they hear a case, judges
are and should be aware that they and the Judiciary are
themselves on trial in the court of professional and
public opinion.  If public confidence in the courts is to
be maintained, it is of vital importance that win or lose,
litigants and their lawyers feel that they have had their
day in court and they go away from the door of the court
with an enhanced respect for the judicial process.

     Thirdly, judges in any modern judiciary must function
with efficiency.  This involves not only mastering new
technologies but also applying effective case management
in dealing with business before the courts.  Case
management is not a fashion but an indispensable technique
for the administration of justice.  Efficiency is
consistent with maintaining quality and with courtesy.
Without effective case management, justice will be delayed
and hence denied.  Without it, the cost of justice may be
excessive and this would impede the citizen's
constitutional right of access to the courts and would be
justice denied.

Judicial education and training

     No modern institution can retain its vigour without
good in service education and training.  We will place
great emphasis on this in our endeavour to maintain high
standards and to improve them.  Continuing education and
training for judges must be strengthened and sufficient
resources must be obtained and devoted to this important
task. We have already held our first three day residential
induction course for new magistrates and we are developing
other initiatives.

Use of Chinese

     Administering the law in a language that the parties
can understand is important.  The use of Chinese in court
proceedings is a complex subject and no other jurisdiction
has the experience in the use of Chinese in a common law
setting to help us.  We have in fact built up substantial
experience in the lower courts.  We need to progress
steadily but cautiously.  The tradition of the common law
has its roots in English and its literature is mostly in
English.  We have to ensure that the common law in its
full vigour is maintained and developed, and that our
jurisprudence is accessible to and respected in the
international common law family.

     The Secretary for Justice will soon be forming the
Committee on Bilingual Legal System to advise on this
subject.  The Judiciary will play its full part on that
Committee and will do its utmost to contribute to the
development of bilingualism in law.

     Since I assumed office, all my colleagues have
generously given me their unstinting support for which I
am deeply grateful.  In conclusion, my colleagues and I
are fully conscious of the high expectations of us by the
community to maintain the rule of law and to safeguard
their rights and freedoms.  Let me assure you that all
members of your Judiciary are deeply committed and are
fully dedicated to doing our very best to meet those
expectations.

     Thank you.

End


7.  Speech by Secretary for Justice
    *******************************

     Following is the full text of the speech by the
Secretary for Justice, Miss Elsie Leung, at the Ceremonial
Opening of the Legal Year today (Monday):

Chief Justice, ladies and gentlemen,

     I am honoured to stand before you as the first
Secretary for Justice of the Hong Kong Special
Administrative Region at this, the first, Ceremonial
Opening of the Legal Year since the handover.  I am also
pleased to report that the resumption of sovereignty was
achieved with a completely smooth transition of the legal
system.

Continuity

     Today's ceremony is visible evidence of the
continuity of Hong Kong's legal traditions.  It symbolises
the continuity that has been achieved in the substance and
operation of our legal system.  Almost all the Ordinances
that were in force before the handover have been adopted
as laws of the SAR.  In July of this year, the Court of
Appeal confirmed that the common law continues to apply
after the handover.  So far as the operation of the legal
system is concerned, the Hong Kong Reunification Ordinance
(enacted on July 1 this year) ensured that court
proceedings and the administration of justice could
straddle the handover; that the Ordinances previously in
force are construed in a way that does not contravene the
Basic Law; and that there is continuity of the public
service.

     The smooth transition of the legal system would not
have been possible without far-sighted planning and
meticulous preparation.  I wish to pay tribute to the last
Attorney General, Mr Jeremy Mathews, for all that he did
in this respect.  The success of his work is evident for
all to see.

     Most important of all, the rule of law continues to
be the cornerstone of our legal system.  I wish to place
on record, yet again, the Administration's unwavering
commitment to the rule of law in all that it does.

Implementing the Basic Law

     The Administration is also committed to the faithful
implementation of the Basic Law.  My department is well-
prepared to play a key role in this respect.  Through the
Basic Law Unit, it provides legal advice to government
bureaux and departments to ensure that their policies and
legislative proposals are consistent with the Basic Law.
It is preparing textual amendments to the laws previously
in force to bring them into line with the Basic Law, and
with Hong Kong's new status as a Special Administrative
Region of the PRC.  It provides training within the civil
service in respect of the Basic Law, and assists with the
Administration's arrangements for promoting greater
understanding of the Basic Law in the wider community of
Hong Kong.  And, through the Basic Law Litigation
Taskforce, it is ready to meet any challenges, based on
the Basic Law, that may arise in the courts.

     The fact that such challenges can, and have arisen,
is a healthy sign.  It shows that the rule of law is
observed in Hong Kong; that constitutional issues can be
justly and efficiently dealt with by the independent
Judiciary; and that the Basic Law contains rights and
obligations that are fully justiciable.  As more
constitutional cases are decided by the courts, an
authoritative body of jurisprudence will develop which
will clarify important articles of the Basic Law, and give
guidance on the proper approach to interpretation.  This
body of jurisprudence will strengthen our new
constitution, and help the SAR to move forward
confidently.

Mutual understanding

     The principle of 'one country, two systems' will work
best if lawyers in each jurisdiction understand the legal
system operating in the other jurisdiction.  Members of my
department play a leading role in the development of such
mutual understanding.  We conduct regular briefings on
Hong Kong's legal system for visiting academics, lawyers
and government officials from the Mainland; from time to
time senior members of my department and I visit our
counterparts in the Mainland and exchange information on
the two systems; and selected members of my department
attend courses in the Mainland to better understand
mainland laws and legal system.  I am confident that these
arrangements will bear fruit in the years to come,
particularly in respect of mutual legal assistance.

Promoting international awareness

     Looking further afield, it is essential that the
international community becomes aware of the integrity,
strength and vibrancy of our legal system.  There exist
overseas many misconceptions about Hong Kong after the
handover.  My department is actively dispelling these
misconceptions in various ways.  It regularly provides
briefings for consular corps, visiting politicians,
businessmen, lawyers and journalists.  The Solicitor
General has undertaken a number of extensive and highly
successful speaking engagements with influential groups in
the United States, the United Kingdom and elsewhere.  And,
by recently making the laws of Hong Kong accessible, free
of charge, on the Internet, we are enabling people all
over the world to see for themselves both the content of
our laws, and the transparency with which we operate.

     I am confident that these efforts will pay off, and
that a better understanding of our legal system will
develop overseas.  This will be enhanced by the creation
within the International Law Division, of a Mutual Legal
Assistance Unit, to which I shall refer in a moment.

Bilingual legal system

     In recent years, the Chinese language has enjoyed
wider use in the legal system.  The process has wisely
been gradual and controlled.  The position now is that all
the Ordinances and subsidiary legislation of the SAR are
bilingual, and the courts at all levels are able to
conduct proceedings in the Chinese language.  However,
much more needs to be done to ensure that our legal system
develops into a fully bilingual system.

     The Administration has responded to suggestions made
by some members of the profession that there should be a
high-powered committee to oversee developments in this
area.  I am pleased to announce the imminent formation of
the Committee on Bilingual Legal System, which I will have
the honour to chair.  The other members of the committee
are representatives of the Judiciary, Law Society, Bar
Association, Legal Aid Department, Education and Manpower
Bureau, Commissioner for Official Languages, and my
department; and not more than three lay members to be
appointed by the Chief Executive.

     The terms of reference of the committee are to advise
the Government -

     (a)  on a clear statement of the policy and long-term
goal of bilingualism in law;

     (b)  on how the long-term goal should be attained;

     (c)  on how the efforts of the Judiciary, various
departments, professional bodies and academic institutions
can be co-ordinated to enhance the efficiency and
effectiveness of bilingualism in law, and to avoid
repetition of efforts, if any;

     (d)  on how the interests of users of legal services
can be best served; and

     (e)  on the resources required for implementing the
goal with respect to bilingualism in law.

I believe that this committee will make a major
contribution to the long-term development of our legal
system, and I look forward to working with the other
members in order to provide clear-sighted and co-ordinated
advice in this vital area.

     In addition to participating in the work of this new
committee, my department will be taking other practical
steps in respect of the use of Chinese.  It will be
conducting a training programme for prosecutors to assist
them to present a case in Chinese.  It will form a
dedicated team to assist in translating, into Chinese,
contracts, tenders and court documents relating to civil
proceedings.  And it will be producing the third edition
of the English-Chinese Glossary of Legal Terms, and the
first edition of a Chinese-English Glossary of Legal
Terms.

     I would add that the Laws of the SAR, which are now
accessible on the Internet, are available in both English
and Chinese.  This means that any member of the community
with a computer that has the Internet and Chinese Windows
can read any of our Ordinances and subsidiary legislation
in the Chinese language.  This is a remarkable improvement
on the position ten years ago - when the laws were
published only in the English language, and were publicly
accessible in only a few places.

     I am sure that these developments will be welcomed by
the public, and will help the laws of Hong Kong to take
deeper root in the community.  This can only be for the
good of Hong Kong.

Prosecutions

     Before the handover, it was a fundamental principle
that the decision whether or not to prosecute any person
was the responsibility of the Attorney General alone; and,
in making that decision, the Attorney General would act
independently, and in no way subject to political, or
other, pressure.  Since the handover, that fundamental
principle continues to apply.  Article 63 of the Basic Law
states unequivocally that the Department of Justice of the
Hong Kong Special Administrative Region shall control
criminal prosecutions, free from interference.  I can
assure you that my Department has complied, and will
comply, with the Basic Law in this respect.

     As you know, a new Director of Public Prosecutions,
Mr Grenville Cross, SC, was recently appointed to succeed
Mr Peter Nguyen, SC.  I would like to thank Mr Nguyen for
all that he did for the department and to wish him well in
his new career on the bench.  Mr Cross has all the
experience, knowledge and skills needed for this demanding
post.  We are introducing a series of improvements in the
Prosecutions Division.  These include the institution of
in-house advocacy training seminars to raise standards,
the sending of counsel on overseas advocacy courses, the
comprehensive updating of the prosecutions manual which
guides prosecuting counsel, a greater role for experienced
prosecutors in front-line advocacy, and a revamp of the
support systems available to prosecutors.  We are also
arranging for the booklet on prosecution policy to be
revised and re-issued, so that the community can have a
better understanding of an important aspect of the rule of
law, namely, the policy and the criteria involved in the
making of prosecution decisions.  These initiatives
reflect my commitment to improve, to modernise, and to
maintain standards, and thereby to promote a prosecution
service which is independent, efficient and just.

Insider Dealing Tribunal

     As you all know, Hong Kong is an international
financial centre, and the Administration is determined to
ensure a level playing field for all investors in the Hong
Kong market.  With this in mind, the Insider Dealing
Tribunal was reorganised in 1994.  Since then, the
tribunal has completed five insider dealing enquiries and
is currently dealing with four other cases.  There is a
rising demand for the Administration and the tribunal to
act swiftly on suspected insider dealing cases.

     The Civil Division of my department has been
providing pre-enquiry legal advice on the merits of cases
referred to it by the Securities and Futures Commission,
as well as providing counsel during the inquiring process.
Until recently, these services were provided by counsel
who had many other duties to perform, and this stretched
our resources.  We have now improved matters, by creating
three new posts that will be dedicated to work relating to
the Insider Dealing Tribunal.  This strengthens the
support provided for the tribunal, and underscores the
Administration's commitment to maintaining a market-place
which is open and fair to local and international
investors, and to market operators.

MLA Unit

     Another improvement that is taking place in my
department is the creation of a Mutual Legal Assistance
Unit.  In the past, several units have undertaken
different aspects of mutual legal assistance work, which
up to now has consisted mainly of co-operation with other
jurisdictions over extradition, the recovery of the
proceeds of crime, the taking of evidence, the transfer of
prisoners, and conducting negotiations for bilateral
agreements on these subjects.  This distribution of
responsibilities is unsatisfactory, since it is difficult
for there to be any overall supervision, co-ordination and
direction of this important work.  In addition, there has
been, and will continue to be, an increase in the volume
of this work.

     We are tackling this situation by creating, within
the International Law Division, a new Mutual Legal
Assistance unit.  This will be headed by the holder of a
new post at the Deputy Law Officer level.  The new unit
will soon be fully functional and I am confident that it
will improve the quality of the services we render in this
area.  It will also demonstrate our commitment to
providing full and effective co-operation in the
international battle against crime.

Bilateral agreements

     I am also pleased to report progress in a related
area, namely that of bilateral international agreements.
With the approval of the Central People's Government, a
number of bilateral agreements have already been
concluded.  These include 22 air services agreements, 13
investment promotion and protection agreements, 10
surrender of fugitive offenders agreements, and 3 mutual
legal assistance agreements.  Negotiations are continuing,
several of them at an advanced stage, with additional
partners in order that a reasonably comprehensive
framework of bilateral agreements can soon be in place.

The First Step

     Understandably, pending the handover, decisions on a
number of matters were held in abeyance.  During the past
six months, much efforts have been made within the
Department, and with other departments, the legal
profession, the Provisional Legislative Council and
community leaders to build up a cordial working
relationship and to strengthen mutual trust and
cooperation which are so important to the success of the
Special Administrative Region.  In giving an account of
the work undertaken by this Department, I do not by any
means attempt to understate the problems and difficulties
that we meet in almost every area.  But the important
thing is this: we face these challenges, problems and
difficulties and are committed to resolve them and strive
for improvement.  All Law Officers have displayed such
determination and leadership in pursuit of the work of
their respective Divisions that I have full confidence
that our Performance Pledges will be met.  Now that we
have a Director of Administration and Development within
the Department, we can not only develop our current
resources and plans, but also collectively shape our
vision for the 21st Century.

Into the 21st Century

     Chief Justice, I would like to conclude by
emphasising that, as we move towards the 21st century, my
department is fully prepared to meet the challenges that
lie ahead.  In particular, I and the Law Officers are
confident of achieving -

     *  improved standards of service in all divisions of
my Department;

     *  improvements in mutual legal assistance with the
Mainland;

     *  an increased mutual understanding of the two legal
systems within the People's Republic of China;

     *  an increased understanding of the SAR's legal
system in other countries;

     *  an increased capacity to conduct litigation and
prosecutions in the Chinese language;

     *  the completion of the adaptation of laws project,
so that the texts of all Ordinances are consistent with
the Basic Law, and

     *  the conclusion of further bilateral international
agreements.

     After an excellent beginning, the SAR's legal system
will, I am sure, grow from strength to strength.

     Thank you.

End


8.  Unwavering commitment to rule of law
    ************************************

     The Secretary for Justice, Ms Elsie Leung, has
reaffirmed the Administration's commitment to the rule of
law which continues to be the cornerstone of our legal
system.

     Speaking today (Monday) at the first Ceremonial
Opening of the Legal year since the Handover, which she
described as "visible evidence of the continuity of Hong
Kong's legal traditions," Ms Leung said she wished to
place on record, yet again, "the Administration's
unwavering commitment to the rule of law in all that it
does."

     She added that the Administration is also committed
to the faithful implementation of the Basic Law, and
pointed out that challenges based on the Basic Law can,
and have arisen, is a healthy sign.

     "It shows that the rule of law is observed in Hong
Kong, that constitutional issues can be justly and
efficiently dealt with by the independent Judiciary, and
that the Basic Law contains rights and obligations that
are fully justiciable," she said.

     In her speech, Ms Leung gave a comprehensive account
of the initiatives that the Administration and the
Department of Justice are undertaking to improve the legal
system and to provide legal services.

     One initiative is the imminent formation of a high-
powered Committee on Bilingual Legal System which Ms Leung
will chair.

     The Committee will advise the Government on a clear
statement of the policy and long-term goal of bilingualism
in law, as well as the way to attain this goal.  It will
also advise on ways to co-ordinate efforts, on resource
requirements and on how the interests of service users can
best be served.

     On the work of her department, Mrs Leung emphasised
that it is fully prepared to meet the challenges that lie
ahead as we move towards the 21st century.

     In particular, she said, she and the Law Officers are
confident of achieving -

     *  improved standards of service in all divisions of
the department;

     *  improvements in mutual legal assistance with the
Mainland;

     *  an increased mutual understanding of the two legal
systems within the People's Republic of China;

     *  an increased understanding in other countries of
the SAR's legal system;

     *  an increased capacity to conduct litigation and
prosecutions in the Chinese language;

     *  the textual adaptation of all Ordinances to make
them consistent with the Basic Law, and

     *  the conclusion of further bilateral international
agreements.

     "After an excellent beginning, the SAR's legal system
will, I am sure, grow from strength to strength," Ms Leung
said.

End


9.  Aid proposed to earthquake victims in Hebei
    *******************************************

     The Government has today (Monday) announced that it
will propose to the Disaster Relief Fund Advisory
Committee that funds from the Disaster Relief Fund be
granted to relief organisations for disaster relief to the
earthquake victims in Zhangjiakou in Hebei Province.

     Funds will be allocated to relief organisations with
a sound track record whose proposed relief programmes meet
the approval of the Advisory Committee.  So far, one
relief organisation, Hong Kong Red Cross has applied for
about HK$6 million for relief work in the affected areas
and the application will be urgently put to the Disaster
Relief Fund Advisory Committee for consideration.  Two
other organisations, World Vision and Jian Hua Foundation,
have indicated interest in applying for funds and their
applications will also be dealt with urgently once they
are received.

     A government spokesman expressed hope that there will
also be a positive response from the public towards the
plight of the people affected by the earthquake.

     Enquiries can be made to the Secretary to the
Disaster Relief Fund Advisory Committee in Room 1235,
Central Government Offices, West Wing or on telephone
2810 3503.

     The Advisory Committee is chaired by the Chief
Secretary for Administration.  Other members are
Dr Raymond Ch'ien, Mr Yang Ti-liang, Mrs Elsie Tu, Mr Ngan
Kam-chuen, Mr Norman Leung, Ms Sansan Ching, the Secretary
for Health and Welfare and the Secretary for the Treasury.

     The present balance of the Disaster Relief Fund is
$37.7 million.  $10.3 million was granted in 1997 for
disaster relief.

End


10. Government committed to completing SSDS project
    ***********************************************

     The Government is committed to completing the
Strategic Sewage Disposal Scheme (SSDS) - Stage I in order
to improve the water quality of the Victoria Harbour.

     This was stated by the Director of Drainage Services,
Mr John Collier, after signing two contracts for the
project  this (Monday) afternoon.

     Under the first contract, a sewer system comprising
two tunnels will be installed from Kwun Tong to
Stonecutters Island.  The other contract is for a sewer
tunnel system from Chai Wan to Kwun Tong and from Tseung
Kwan O to Kwun Tong.

     "When the four sewer tunnels are completed by 2000,
sewage collected from the Tseung Kwan O, Central and
Eastern Kowloon, Shau Kei Wan and Chai Wan areas will be
conveyed to Stonecutters Island Sewage Treatment Works,"
Mr Collier said.

     The sewage will then be treated by a chemically
enhanced sedimentation process before the effluent is
discharged to sea through a submarine outfall.

     "The flow of pollutants into the Victoria Harbour
will be reduced by 70 per cent," he added.

     Another two tunnels, from Kwai Chung to Stonecutters
Island, are being constructed under a contract signed in
July 1997.

     The contracts today are for completing the SSDS -
Stage I sewer tunnel system, the construction of which was
suspended when the two previous contracts were forfeited
by the Government in December 1996.

     The contractor of the forfeited contracts claimed
that the tunnels were impossible to construct, and
suggested that other contractors would not be prepared to
continue with the same specification.

     "This has proved to be unfounded now that the
Government has entered into contracts with experienced
contractors who are committed to completing the works,"
Mr Collier said.

     Gammon-Kvaerner Joint Venture will undertake the
contract completing the sewer tunnel system from Kwun Tong
to Stonecutters Island. Paul Y - SELI Joint Venture will
undertake the other contract.

     Works under these two contracts, at a total value of
$1.348 billion, will start later this month.

End


11. New funding scheme to promote equal opportunities
    *************************************************

     Community organisations seeking sponsorship to
organise activities or provide services to promote equal
opportunities can now apply for project grants under a new
programme: Equal Opportunities (Race and Sexual
Orientation) Funding Scheme.

     The scheme, introduced by the Home Affairs Bureau
(HAB), aims to encourage and enable organisations to
actively drive home the message of equal opportunities
particularly in the areas of race and sexual orientation.
It is also open to organisations that support the needs of
minority groups, including new arrivals from the Mainland.

     An HAB spokesman said: "The Government is committed
to the promotion of equal opportunities for all,
regardless of sex, disability, race, sexual orientation,
age and so forth.

     "We have therefore introduced this scheme to address
discrimination in all forms but with particular emphasis
on the questions of race and sexual orientation and to
promote equal opportunities in these areas."

     Any registered organisation can apply for funding.
The maximum grant for each application is $100,000.

     Each applicant can apply for an advance of up to 50
per cent of the approved grant for launching the project.
The remainder of the grant will be paid on submission of a
project report providing details of activities, financial
reports and all receipts.

     Organisations which are interested in the scheme
should send in the application outlining the objective and
content of the project, the budget and the total amount
applied for under this scheme to the Home Affairs Bureau,
31st floor, Southorn Centre, 130 Hennessy Road, Wan Chai.

     Deadline for application is March 1, 1998.
Successful applicants will be notified in writing in early
April, 1998.

     Details and application forms of the scheme are now
available from all district offices and the HAB Homepage
(Website: http://www.info.gov.hk/hab/topi_e.htm).
Enquiries can be made at Tel. 2835 2065.

End


12. Exhibition to promote employment of the disabled
    ************************************************

     The Labour Department's Selective Placement Division
(SPD) will hold a two-day exhibition from Thursday
(January 15) in Kwai Chung to promote the working
abilities of people with a disability.

     There will be video shows and exhibition panels
introducing the various disabilities, the work disabled
employees are performing, supporting services available in
the community on employment of people with a disability
and the services provided by SPD.

     Moreover, an enquiry counter will be set up to answer
public enquiries and distribute booklets and leaflets.

     Employers who wish to recruit disabled employees can
place vacancy orders on the spot and disabled job-seekers
can also leave behind their contacts for registration
arrangement.

     In order to attract more visitors, a game stall will
be set up in the venue and souvenirs will be given to
winners.

     The exhibition will be held from 11 am to 6 pm each
day at the Crystal Atrium, Level 3 Metroplaza, Kwai Fong.
Admission is free.

End


13. Seminars on 'Pleasurable and Effective Learning'
    ************************************************

     Some 600 primary school heads and teachers will have
a better understanding on pleasurable and effective
learning after attending a seminar tomorrow (Tuesday).

     The Honorary Headmistress and the Headmistress of the
First Primary School attached to Shanghai First Normal
School, Ms Ni Guyin and Ms Song Zhufeng, will share their
experiences on the implementation of pleasurable education
in Shanghai at the seminar.

     Participants will discuss the roles of school heads,
teachers and parents to achieve pleasurable and effective
learning at the experience sharing session.

     Relevant teaching kits and reference materials will
also be displayed at the venue.

     Jointly organised by the Education Department's
Curriculum Development Institute Steering Committee on
"Towards More Pleasurable and Effective Learning" and the
Department of Curriculum and Instruction of the Hong Kong
Institute of Education, two identical half-day seminars
will be held at the City University of Hong Kong.

End


14. Hong Kong Monetary Authority tender results
    *******************************************

Tender date                      :   12 January 1998

Paper on offer                   :   EF Notes

Issue number                     :   3101

Issue date                       :   13 January 1998

Maturity date                    :   12 January 2001

Coupon                           :   9.28%

Amount applied                   :   HK$980 MN

Amount allotted                  :   HK$500 MN

Average price accepted (yield)   :   95.87 (11.23 PCT)

Lowest price accepted (yield)    :   95.52 (11.38 PCT)

Pro rata ratio                   :   About 20 PCT

Average tender price (yield)     :   95.27 (11.49 PCT)

End


15. Water storage figure
    ********************

     Storage in Hong Kong's reservoirs at 9 am today
(Monday) stood at 82.3 per cent of capacity or 482.222
million cubic metres.

     This time last year the reservoirs contained 464.142
million cubic metres of water, representing 79.2 per cent
of capacity.

End





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