Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Tuesday, January 13, 1998
CONTENTS
========
1. Transcript of FS's media session
2. New Airport to open in July
3. Chief Secretary receives warm welcome in Los Angeles
4. CS: little change in HK
5. Speech by CS in Los Angeles
6. Update on avian flu
7. Two lots sold for $283 million at land auction
8. Voter registration closes on Friday
9. ExCo approves Lantau taxi fare increase
10. LD to set up new unit to promote effective communication
11. November external trade by country/territory and commodity
12. Business receipts indices for service industries
13. Ad hoc committee to discuss housing for the elderly
14. Weather of December 1997
15. Weather of 1997
16. Company fined for breaching Inland Revenue Ordinance
17. Tender for sixth issue of 10-year Exchange Fund notes
18. Hong Kong Monetary Authority tender results
19. Fresh water cut in Yau Ma Tei
1. Transcript of FS's media session
********************************
Following is a transcript of a media session by the
Financial Secretary, Mr Donald Tsang, at CGO this
(Tuesday) afternoon:
Mr Tsang: On the advice of the Executive Council, the SAR
Government has decided to open the new airport at Chek Lap
Kok together with all the other component facilities,
including the Airport Railway, air cargo terminal etc., on
July 6, which is the first Monday in July. By the time of
its opening, it will be a world class facility, which has
least rivals in the rest of the world. We have chosen
July 6 because it will be the first Monday in July. We
need to open the airport on a Monday because there will be
the least air traffic on Monday. And we also need a
Sunday, where there would be favourable road conditions
for the transfer of equipment from Kai Tak to Chek Lap
Kok. The new airport will be known as Hong Kong
International Airport. The airport terminal itself will
be completed at the end of April. This is in accordance
with the construction programme. It will be completed on
time and within budget. The Airport Railway itself will
be completed by the end of June again on time and within
budget. Taking account of these, and the completion dates
of other component facilities, we have decided to open it
on July 6. This will be a marvellous facility and it will
be a world class airport, as I said, we will find very
hardly any rival in the rest of the world.
Reporter: ... concern about ... loss of revenue?
Mr Tsang: No, there won't be any loss of revenue. The
loss of revenue in the new Hong Kong International Airport
will be made anyway at Kai Tak. So there will be no net
loss of revenue.
Reporter: How about loss of confidence ...?
Mr Tsang: The point is, we have told everybody the ready
date for the Railway will be in June. There has been no
delay in either the railway project or the airport
terminal project. There is no loss of confidence at all.
In fact it is the determination of the Government to make
sure the facility when launched will be of world class
standard. It will not be a second rate facility.
Reporter: Will Kai Tak able to cope with the increase in
traffic?
Mr Tsang: Yes, yes. It will be able to cope until the end
of June.
Reporter: When did the Government decide to open in July?
Mr Tsang: Well, as I said the Executive Council, gave the
advice this morning. And the Chief Executive decided that
will be the date its July 6.
Reporter: Decided today?
Mr Tsang: That's right.
Reporter: What do you think about the liquidation of
Peregrine?
Mr Tsang: Well I feel very sorry about it because it is a
Hong Kong firm. But it is a market operation. It is a
market decision. And it has made a lot of unprofitable
investment in Indonesia resulted in the closure. I feel
very sorry about it. I am relieved to hear that Mr Tose
attached great importance to looking after the staff. I
hope that the liquidation process would be a smooth one,
and I understand that they are still in negotiation with
some other buyers.
Reporter: Moody's downgrading the rating of KCRC and MTRC,
how would that affect the lending for these companies?
Mr Tsang: I have not heard of downgrading. I mean they
are open to review. These are public corporation. We are
conducting the affairs very well. They are doing
excellent business. It is open for review by any rating
agency. I don't think it will affect the operation of the
railway, Mass Transit Railway Corporation or any entities
for that matter.
Reporter: I mean ... downgrading of three banks in Hong
Kong ...
Mr Tsang: Well, I think they are open to look at all
aspects of financial situations subject of course if they
are involving target entities they must have the
permission of the entities concerned. We are a robust
economy, with our corporation functioning in a most
prudent way. I think they are open to ... the books are
open, the operations are open, it is clear for all to see.
Reporter: ... the market performed?
Mr Tsang: Well the market is a healthy market, it goes up,
it comes down. It would do what a market will do.
End
2. New Airport to open in July
***************************
Hong Kong will open the new airport at Chek Lap Kok
for operation on July 6, 1998, the first Monday in that
month.
On opening, the new airport will be of world class
with supporting facilities, including the Airport Railway,
ready for operation.
The new airport will be known as Hong Kong
International Airport.
"The commissioning of the new airport and the Airport
Railway in tandem will be significant. It will also
denote the successful conclusion of the $155 billion
Airport Core Programme," a Government spokesman said.
"We have to ensure what is available on Day One is a
world class airport supported by efficient transport
arrangements.
"On July 6, 1998, which is the first Monday in July,
the new airport will start operation as we need a Sunday
night with lighter road traffic to facilitate a smooth
airport relocation exercise and as air traffic also
happens to be lighter on Monday," said the spokesman.
Judging from current works progress, the new airport
should be ready for operation in late April and the MTR
Corporation has confirmed that the Airport Railway will be
available in late June as originally scheduled.
"We acknowledge the tremendous efforts made by both
the Airport Authority and the MTR Corporation," the
spokesman said.
The new airport is the largest single construction
project ever undertaken in Hong Kong. Unlike Kai Tak, the
new airport will be able to operate round the clock.
During its initial operation, it will be able to handle up
to 35 million passengers and three million tonnes of cargo
a year. Upon full development in the longer term, the
airport will have an annual throughput capacity of 87
million passengers and nine million tonnes of cargo.
In 1996, 29.5 million passengers and 1.56 million
tonnes of cargo passed through Kai Tak. According to
Airport Council International's statistics, Hong Kong
ranks first in international air cargo throughput and
third in terms of international passengers.
The Airport Railway is designed to carry about 40 per
cent of air passengers. The Airport Express will take
passengers from Central to the new airport in 23 minutes
in business-class comfort. In-town check-in facilities
are available at the Central Station and Kowloon Station.
End
3. Chief Secretary receives warm welcome in Los Angeles
****************************************************
Californian businessmen, government officials and
academia gave the Chief Secretary for Administration,
Mrs Anson Chan, a very warm welcome during her first full
day of meetings and briefings in Los Angeles today
(January 12, US time).
During a busy day, Mrs Chan had a breakfast meeting
with the Board of Directors of the Hong Kong Association
of Southern California and members the Los Angeles Area
Chamber of Commerce and met the Californian State
Treasurer, Mr Matt Fong.
In the afternoon, Mrs Chan attended an elite lunch
hosted by Mr Albert Carnesale, Chancellor of the
University of California at Los Angeles, where she met
many distinguished academia, think-tank members and top
management of major corporations.
In late afternoon, Mrs Chan travelled to the
University of California at Irvine where she attended a
reception hosted by UCI Chancellor Laurel Wilkening.
During a private reception, Mrs Chan met with faculty
members and later exchanged views with more than 60 UCI
students on a wide range of topics on Hong Kong including
the linked exchange rate system, measures to tackle the
current downturn in tourism, the use of mother tongue as
the medium of instruction, the electoral system for the
first SAR Legislative Council and the Vietnamese problem.
During the evening, Mrs Chan was the Guest Speaker at
the dinner reception hosted by the Orange County World
Affairs Council. More than 360 guests comprising
prominent members of the business community in the Orange
County attended the dinner. In the question-and-answer
session, Mrs Chan talked on such topics as Chinese
immigrant into Hong Kong, education policy, importation of
labour scheme and the control of avian flu.
Highlights of Mrs Chan's programme tomorrow includes
a meeting with the Los Angeles City Mayor, Mr Richard
Riordan, and a gala dinner hosted by the Hong Kong
Economic and Trade Office in San Francisco during which
the Hong Kong Ballet will perform.
End
4. CS: little change in HK
***********************
That there has been little change in Hong Kong since
July 1 last year is the best answer Hong Kong can possibly
offer to critics who simply could not believe that Hong
Kong would be able to hang on to its freedoms after the
handover.
This was the message given by the Chief Secretary for
Administration, Mrs Anson Chan, in her speech at a dinner
hosted by the World Affairs Council of Orange County in
Los Angeles today (US time January 12).
I am not the only one to say so, Mrs Chan said.
According to the first quarterly report of the
Congressional Task Force which is tracking the progress of
the transition in Hong Kong for Speaker Newt Gingrich, the
press continue to be open, free and full of criticism and
analysis of both the Hong Kong and Beijing governments;
demonstration representing all shades of political opinion
continued without interference or restriction; and non-
government organisations, including those harshly critical
of China, continue to operate freely.
The Congressional Task Force report summed up that it
was 'so far so good' in Hong Kong, she said.
Mrs Chan went on to explain that because the
negotiations between the British and Chinese governments
on Hong Kong's last legislative elections in 1995 failed,
the Special Administrative Region had to put in place
arrangements for new elections.
The legislature to be elected in May will retain the
same profile as its predecessor elected in 1995: 20
geographical constituencies; 30 functional constituencies;
and 10 members elected by an 800-member Election Committee
drawn from four broad cross-sections of the community.
A proportional representation system has been adopted
to provide a broader representation of the diversity of
voting for a range of parties and candidates; and the nine
new functional constituency seats have reverted to their
traditional role of representing particular representative
groups varying from business, industries, professions and
trade unions.
"I think it is important to stress, too, that the
elections will be keenly and competitively fought," she
said.
All of Hong Kong's established political groupings
are going to run in the elections, including those who
have been most critical of the electoral arrangements.
Mrs Chan said that the government had conducted a
massive campaign to enrol more voters and she felt that
all sectors of the community would have their voices heard
through the legislature returned by the May 24 election.
On the regional financial turmoil, Mrs Chan said that
Hong Kong's stock and property markets took a hammering as
interest rates rose as Hong Kong came resolutely to the
defence of the linked exchange rate with the US dollar.
Since the link was introduced 14 years ago, it has
provided the basis on which Hong Kong has come through
many international crises: the 1987 stock market crash;
the 1989 June 4 incident; the 1992 Exchange Rate Mechanism
turmoil; the 1995 Mexican peso crisis; and now the latest
regional currency crisis crunch.
On the strong speculative attack on Hong Kong's
linked rate system, Mrs Chan said that the first point to
be made is that the linked exchange rate is here to stay.
"It has proved its value to us time and time again.
It will not change. I emphasise, it will not change.
"Secondly, the events of last October in particular
will mean that our growth this year will be well below
that of last year's, which was a healthy 5.5 per cent,
despite the worries of some that the change of
sovereignty, and the currency and stock market turmoil,
would see it slashed.
"But slower growth obviously has its implications for
the economy and the community but it will be our intention
to manage that pain in both a sensible and compassionate
manner.
"The realignment of the property sector in some ways
has been a blessing in disguise," she said.
The lower prices and rentals will be good for Hong
Kong's competitive position and will dovetail with the
medium and longer term housing strategy announced by the
Chief Executive in October designed to bring about a
levelling of property prices.
"In addition, inflation is falling; and the reform of
China's state owned enterprises provides a perfect
opportunity for Hong Kong to act as a banker and provider
of services and expertise in this latest bold chapter in
the opening of the mainland economy.
"This will further enhance our role as the unrivalled
gateway to the China market.
"And finally, government investment will be
supporting a massive expansion of Hong Kong's domestic and
cross-border rail networks that together will exceed the
scale of our US$20 billion new airport program which will
be completed later in the year.
"These projects will generate employment for several
years to come and add greatly to Hong Kong's economy
efficiency early in the next century."
"The problems of the region are serious, but the
resources and the determination are there to overcome
them, and I am confident that will happen.
"Certainly, I have no doubt that Hong Kong will be
among the first - if not the first - to rebound," she
said.
End
5. Speech by CS in Los Angeles
***************************
Following is the speech by the Chief Secretary for
Administration, Mrs Anson Chan, at the dinner hosted by
the Orange County World Affairs Council at the Newport
Beach Marriot Hotel in Los Angeles tonight (Monday,
January 12, US time):
"Hong Kong's return to China"
Good evening, ladies and gentlemen,
Sir Elden, thank you very much for that kind
introduction. I would like to say emphatically that I do
not run the show in Hong Kong. I am the deputy to the
Chief Executive Mr Tung and contrary to media speculation
from time to time, we work extremely well together as a
team, together with all my senior colleagues, who like
myself, have transited and remain in post past first of
July 1997. Before I start on my talk, I'd like to thank
you for inviting me to speak to you as I know that this
organisation has hosted many distinguished speakers in the
past, and I feel privileged to be included among their
number.
I believe Christ Patten, the last British Governor
spoke to the Council in November, 1994 - well over three
years ago. A great deal has happened since then. Most
importantly, the change of sovereignty. The immediate
challenge that historic change presented to China, Britain
and the people of Hong Kong over a long transition period
is now to a great extent behind us. The natural tension
and anxiety which understandably grew as the final months
and weeks rolled by, have now largely evaporated.
The transition has successfully taken place, and Hong
Kong, after 156 years of colonial rule, has settled down
to forge its own future under the guarantees given by
China which allow Hong Kong people to run Hong Kong under
an ingenious formula engineered by the late Deng Xiaoping
which we know as One Country Two Systems.
As if this unique, completely untested arrangement
was not enough for a tiny community of 6.5 million people
to handle, we were thrust into, US Sir Elden said, the
epicentre of a financial and currency crisis in Asia, the
likes of which the region has not witnessed in its post-
war march to the front line of world economies. We have
also been buffeted by a post-Handover downturn in tourism;
and more recently by a bird 'flu scare which has attracted
banner headlines here and throughout the world.
How has Hong Kong come out of all of that? How are
we managing the transition from British to Chinese
sovereignty? Has it all changed? Are we still in one
piece? And the regional financial and currency turmoil?
How did we fare? And, more importantly, how will those
dramatic recent events, which dealt savage blows to some
of our neighbouring economies, affect Hong Kong's future
prospects? And with them, the billions of dollars which
Americans have invested in Hong Kong?
These are the questions I wish to address tonight
because Americans have a huge stake in us getting the
answers right. And I refer not just to the interests of
American investors, but the wider international interests
of the US, its interface with Asia in general, and its
relationship with China in particular.
Let me begin with the most topical news - the bird
'flu. I know that this issue has created enormous
attention here and elsewhere. Not surprising when you
think of the worst case scenario. Mercifully that has not
come to pass, but it is worthwhile remembering precisely
what it is that we are dealing with.
Firstly, it is not an epidemic as repeatedly stressed
by the World Health Organisation. There have been 17
cases, of which 4 were fatal since the first case was
discovered in August last year. Secondly, there is no
concrete evidence yet so far that the 'flu was
transmittable from human to human and according to the
lastest Centers for Disease Control statement, even if it
were so transferrable, it is a very inefficient
transmission. Thirdly, in recognising the potentially
serious nature of the problem, our health authorities were
extremely vigilant, and quick to call in the experts from
the World Health Organisation and the Centers for Disease
Control in Atlanta, Georgia, to work alongside them in
taking all the necessary measures. Some of these - like
the culling of our entire chicken population - were quite
unpleasant, but we believe necessary. These measures,
along with cooperation from the Mainland on chicken
imports from China, stringent new checks and controls on
poultry imports, and complete overhaul of our own farm and
market hygiene arrangements, have been taken to protect
the health of the community and to restore consumer
confidence.
Before I move onto the first question I raised at the
beginning of this address - how are we managing the
change? - let me recall the message that Chris Patten
delivered to this audience back in November 1994. It was
that so long as Hong Kong's fundamentals, those core
values which underpinned our success, were not changed,
then he was optimistic about Hong Kong's future after 30
June 1997. He singled out:-
* The rule of law
* An independent judiciary
* A level playing field for business
* A clean government which plays by the rules, under
the rules
And those other freedoms we all hold dear:-
* A free press
* Freedom of worship
* Freedom of assembly.
I am sure you will all agree with me that these are
key ingredients in maintaining a free, plural society;
where the institutions of civil society are embedded into
the fabric of the community which, in turn, understands
their importance; and where the citizens cherish and
protect them, not just for their own sake, but for the
sake of their children.
I believe I can put my hand on my heart and say that
the Hong Kong Special Administrative Region of the
People's Republic of China continues to enjoy those
essential freedoms; and that we have an administration
that is wholly committed to ensuring that we continue to
do so. We are doing so under the provisions of the Basic
Law, China's mini-constitution for the Hong Kong SAR.
This document lays out in considerable detail the
framework of a free market, capitalist economy underpinned
by the rule of law, and with all of those freedoms I have
already detailed. In short, it is a constitution which
guarantees the kind of Hong Kong which the rest of the
world has come to know and admire, for the strength of its
institutions and the vision and vitality of its people.
That there has been so little change in Hong Kong
since 1 July last year is the best answer we can possibly
offer to those critics who simply could not believe that
Hong Kong would be able to hang on to its freedoms after
the Handover; that once we had again become part of China,
the whole fabric of our society would be changed and
diminished. Those of us who had been intimately involved
during 12-and-a-half years of transition in the
negotiations between Britain and China knew that the self-
interest of all of those concerned, and the determination
of Hong Kong people to make the transition work, would at
the end of the day prevail. With the Handover now just
over 6 months behind us, that is indeed how it has worked
out.
I am not the only one to say so. Let me refer to the
first quarterly report of the Congressional Task Force
which is tracking the progress of the transition in Hong
Kong for Speaker Newt Gingrich. Noting the high level of
public confidence following the Handover, the report went
on to say that:-
* The press continues to be open, free and full of
criticism and analysis of both the Hong Kong and Beijing
governments. Citing coverage of the recent 15th Chinese
Communist Party Congress, it emphasised that journalists
displayed no hesitancy in voicing views not welcome in
Beijing.
* Demonstrations representing all shades of
political opinion continued without interference or
restriction. Indeed, there have been 150 demonstrations
since the Handover.
* NGOs, including those harshly critical of China,
continue to operate freely.
The report noted evidence of self-censorship in the
press - but this is not something that is encouraged by
the Special Administration Region Government: indeed, I
have made it plain to everyone, including editors and
journalists - that the free and unfettered flow of
information is vital to Hong Kong's social and economic
success.
The report also quoted fears expressed by democrats
that the threat to Hong Kong would come with a very slow
erosion of the rule of law, not a sudden crackdown on
civil liberties or freedom of speech. I believe such
fears are unfounded.
The rule of law is at the very heart of Hong Kong's
success. It is regarded by people at all levels of our
society as the most important safeguard for our way of
life, the very essence of our system as enshrined in the
concept of One Country Two Systems. But Hong Kong people
know that the rule of law cannot be taken for granted,
that they must protect it themselves. Believe me, the
rule of law is not something that Hong Kong people will
allow to be taken away from them, by stealth or otherwise.
The Congressional Task Force report summed up that it
was "so far so good" in Hong Kong. Given the size of the
task we faced, I think that's a pretty encouraging report
card - certainly enough to give us confidence for the next
semester!
But I do not pretend that life is problem-free in
Hong Kong - that is not the way of a dynamic society such
as ours. For example that report did raise other
concerns, chief among them the worries that have been
expressed about the abolition of the last legislature, its
replacement by an appointed provisional legislature, and
by what critics see as more restrictive arrangements for
the first SAR Legislative Council election which are to be
held on May 24.
Having been closely involved in this issue both
before and after the transition, I understand the
arguments on both sides of the debate, and I appreciate
the depth of feelings and sincerity behind them. Allow me
to offer some background so that you can see the issue in
context. You may recall that the arrangements for Hong
Kong's last legislative elections which took place in 1995
were the subject of lengthy negotiations and considerable
controversy between the British and Chinese governments,
and among Hong Kong people themselves. The negotiations
unfortunately failed, and the elections went ahead with
the Chinese government making it plain that in the absence
of their agreement to these arrangements the resultant
legislature would be replaced immediately after the
transition.
I know that both sides, wish that none of this had
ever happened; that agreement could have been reached.
But it wasn't, and the SAR must now put in place
arrangements for new elections. It has been a very
difficult issue for all of those concerned. From my own
perspective as the head of Hong Kong's civil service
before and after the Handover, I can only say that to
recognise the future is not necessarily to repudiate the
past. Our collective responsibility as civil servants is
to put into place the new arrangements in a way that will
be seen by the community - and by fair-minded
international opinion - as being free, fair and open. The
aim of the arrangements are to provide a balance of
interests in the legislature to which the administration
must be accountable, and will be accountable.
The legislature to be elected in May will retain the
same profile as its predecessor elected in 1995: 20
geographical constituencies; 30 functional constituencies;
and 10 members elected by an 800-member Election Committee
drawn from four broad cross-sections of the community.
The main areas of contention have been the introduction of
proportional representation for the geographical
constituencies and a reduction of the size of the
electorate in 9 of the 30 functional constituencies.
A proportional representation system has been adopted
to provide a broader representation of the diversity of
voting for a range of parties and candidates; and the 9
new functional constituency seats have reverted to their
traditional role of representing particular representative
groups varying from business, industries, professions and
trade unions. As Hong Kong's representative institutions
began to develop from the colonial appointment system,
these functional constituencies were always regarded as
stepping stones towards universal suffrage, and that
remains their role today.
I think it is important to stress, too, that the
elections will be keenly and competitively fought. We are
no strangers to elections in Hong Kong, and if the last
two elections are any guide, our political parties,
community organisations and independents running for
office will present the voters with some interesting
choices and challenges. Our Chief Executive, Mr Tung Chee
Hwa, has made it very clear that everybody in Hong Kong is
welcome to run in the elections, no matter what their
political views. All of our established political
groupings are doing so, including those who have been most
critical of the electoral arrangements.
The administration's view is that the test of the new
arrangements should be left to Hong Kong people
themselves, and they can best do that at the ballot box.
That is why we have conducted a massive campaign to enrol
more voters; and why we will continue that campaign to
ensure the highest possible voter turnout on polling day.
I am sure Hong Kong people will want to take the
opportunity to vote in large numbers in the first
elections to be held in the SAR.
I myself feel the May 24 elections will produce a
lively legislature in the recent Hong Kong tradition, and
that all sectors of the community will have their voices
heard through it. The elections will also, in a very real
sense, put a final and important seal on the transition,
and provide a bridge for us to move forward in evolving
the democratic society envisaged in the Basic Law. There
will be further elections in the years 2000 and 2004, by
which time our constitution provides for the electorate to
choose half of the candidates through geographical
constituencies and the other half through functional
constituencies. By the year 2007, we will have an
opportunity to decide on a legislature elected wholly
through universal suffrage, this being the ultimate aim of
our constitution.
Mr Chairman, I have dwelt at some length on this
issue, but I know how important democratic values are to
Americans, and I wanted to do my best to assure you that
they are important to us in Hong Kong also. The future
that has been charted for us in the Basic Law is a
democratic one, and the administration I serve will be
ever mindful of that.
We are fortunate that as we make our move step by
step along this path, we can rely on a strong economy, and
a business community of legendary resourcefulness,
imagination and entrepreneurial flair, supported by a work
force of equal legend for its adaptability, resilience and
ambition for self and family.
Let me assure you that we husband our resources very
carefully in Hong Kong. For all our daring and vitality
in the market place, the community knows that its
administration takes a very prudent and responsible
attitude towards managing public finances. We do not
allow spending to exceed the trend growth rate of the
economy. Deficit budgets are virtually unheard of (we
have had only one in the last 10 years). Yet taxes are
low and simple. The maximum salaries tax is 15%;
corporate taxes cannot exceed 16.5%. As an
administration, our view is that business decisions are
best taken by businessmen, not bureaucrats. But we don't
pick winners or losers. We respect a businessman's right
to profit, just as much as we respect his right to go
bust.
What we ensure in Hong Kong is a level playing field
for both local and overseas players in the market place;
an economy that operates within the framework of the rule
of law and an independent judiciary which enjoys the
confidence of the community and commerce; and a clean,
politically-neutral civil service which believes it has a
duty to maintain law and order and which regulates with a
light but reassuring touch. We would like to keep the
Government lean and small.
The result is that we have an open, transparent and
accountable system of government; a well-managed and well-
regulated financial sector; and a reputation for playing
by the rules. I believe these fundamentals were pivotal
to the way we handled the Asian currency and financial
crisis in Hong Kong. And these structural differences in
comparison to some others were magnified and recognised
during that time.
It is interesting to note that the regional financial
turmoil did not impact on Wall Street, London or Europe
until the Hong Kong market came under attack in October.
World headlines proclaimed that Hong Kong had led a world-
wide stock market tumble. Whatever the truth of that, it
was certainly a tribute to Hong Kong that Wall Street
caught a cold only when Hong Kong sneezed.
I would not in any way try to minimise the pain we
have suffered as a result of events last fall. Our stock
and property markets, so closely intertwined, took a
hammering as interest rates rose as we came resolutely to
the defence of our linked exchange rate with the US
dollar. This mechanism, operated under a currency board
system, and backed by the world's third largest foreign
exchange reserves, has provided Hong Kong with monetary
and financial stability since it was introduced 14 years
ago at a time of great political uncertainty in the early
part of the then-to-be resolved Sino-British negotiations
on Hong Kong's future.
Since then, the link has provided the basis on which
we have come through many international crises: the 1987
stock market crash; the 1989 June 4 incident; the 1992
Exchange Rate Mechanism (ERM) turmoil; the 1995 Mexican
peso crisis; and now the latest regional currency crisis
crunch.
In the wake of a wave of devaluations in the region,
our link came under strong speculative attack. Hong Kong
and its currency came through this intact. Indeed, in
successfully defending the currency, our foreign exchange
reserves - now standing at US$96 billion - actually
increased as speculators had their fingers burnt. As a
commentary in the November 17 issue of Forbes said: "In
attacking the Hong Kong dollar the speculators tried to
mug the wrong guy. Turns out he had a gun."
So what are our prospects? The first point to be
made is that our linked exchange rate is here to stay. It
has proved its value to us time and time again. It will
not change. I emphasised, it will not change.
Secondly, the events of last October in particular
will mean that our growth this year will be well below
that of last year's, which was a healthy 5.5%, despite the
worries of some that the change of sovereignty, and the
currency and stock market turmoil, would see it slashed.
But slower growth obviously has its implications for the
economy and the community but it will be our intention to
manage that pain in both a sensible and compassionate
manner.
We will have a solid base from which to do this. The
realignment of the property sector in some ways has been a
blessing in disguise. Unlike some other economies in the
region, we do not have a high property overhang, and there
is a continuing demand for high quality business
accommodation. The lower prices and rentals will be good
for our competitive position, and will dovetail with the
medium and longer term housing strategy announced by the
Chief Executive in October designed to bring about a
levelling out of property prices which were seen as a
threat to our competitiveness at the former high levels.
In addition, inflation is falling; and the reform of
China's state owned enterprises provides a perfect
opportunity for Hong Kong to act as a banker and provider
of services and expertise in this latest bold chapter in
the opening of the Mainland economy. This will further
enhance our role as the unrivalled gateway to the China
market.
And finally, government investment will be supporting
a massive expansion of Hong Kong's domestic and cross-
border rail networks that together will exceed the scale
of our US$20 billion new airport program which will be
completed later in the year. These projects will generate
employment for several years to come and add greatly to
Hong Kong's economic efficiency early in the next century.
The problems of the region are serious, but the resources
and the determination are there to overcome them, and I am
confident that will happen. Certainly, I have no doubt
that Hong Kong will be among the first - if not the first
- to rebound.
I am hopeful, too, about the medium and longer-term
future of our tourism industry. We were hit particularly
badly after the Handover by a big fall in the number of
tourists from Japan, following a huge increase in 1996 and
the first half of last year by Japanese tourists who had
come to see Hong Kong "before it went back to China".
Indeed, an overall post-1997 "fatigue" factor, and worries
about the price structure in Hong Kong which in turn was
exacerbated by devaluations in the region that have
contributed to our current problems.
The government and our tourist industry, in
particular the Hong Kong Tourist Association, have been
working closely together to address the problems exposed
by the turndown, and to come up with some positive ideas
and plans to solve them.
I can assure you that Hong Kong remains the exciting,
dynamic, cosmopolitan city that is as stimulating and as
much fun to visit as ever it was. And I am happy to
report that the US represented our only growth market for
tourists in 1997. While the number of visitors overall
dropped 10%, the number of Americans was up 6%. Thank you
all for coming - and keep coming. You will always be
welcome.
I expect Americans to share in the prosperity and
opportunities offered by the developments I mentioned
earlier, and in the whole range of economic activities in
Hong Kong. Americans have cultural, commercial, family
and personal ties stretching back more than 150 years to
Hong Kong's early beginnings.
There are 1,200 US companies, many of them among the
2,000 multi-nationals with regional headquarters in Hong
Kong. There are now 40,000 Americans living in Hong Kong,
and US investment is estimated at US$16 billion. I have
no doubt that those numbers will increase in direct
proportion to the economic development and commercial
opportunities in Hong Kong, China and - notwithstanding
the current difficulties - the Asian region as a whole.
These US-Hong Kong links are important in the overall
context of US-Sino relations. For the last 6-7 years, the
Hong Kong factor has been an integral part of the annual
debate on MFN renewal for China. This year, the first
since the Handover, will probably be no exception. As
Washington has set itself on a course of constructive
engagement with Beijing, I feel that the close, long-
standing and continuing fruitful ties between Hong Kong
and America can play a useful role in developing greater
mutual understanding between the US and the Mainland.
Mr Chairman, ladies and gentlemen, if I may return
briefly to my opening theme, I believe we have made a good
start as an SAR enjoying a high degree of autonomy under
the guarantees of One Country Two Systems. I believe the
Chinese leadership is committed to these guarantees. They
have proved their commitment to JD & BL by word and deed.
Since the Handover, they have been scrupulous in leaving
us alone to run our own affairs. I am sure they intend to
continue to do so. The current financial turmoil and our
continuing ability to handle this crisis entirely on our
own with no interference from Beijing is the best
demonstration of central Government's commitment to the
"One Country two systems" concept and a high degree of
autonomy for the SAR. I was in Beijing only 5 days ago
meeting with Chinese leaders and officials, and that
message came over loud and clear.
With these guarantees being honoured, there is no
reason to think that Hong Kong cannot go on to greater
things, expanding on our role as a major international
financial and trading centre. That's good news for all of
us in Hong Kong. And it's good news for all of those
Americans who have already recognised the many
opportunities offered by our city across the Pacific, and
for the countless Americans who I know will continue to be
attracted in the years and decades to come.
Mr Chairman, ladies and gentlemen, thank you very
much.
End
6. Update on avian flu
*******************
The Department of Health (DH) announced today
(Tuesday) that there was no new case of influenza A (H5N1)
today.
Moreover, the 14-year-old female involved in Case 14
of the confirmed case list has recovered and been
discharged.
The total number of cases remains 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: 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 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
7. Two lots sold for $283 million at land auction
**********************************************
Two government lots were sold for a total of $283
million at a public auction held by the Lands Department
this (Tuesday) afternoon.
The first lot, located at Tsing Sin Street, Area 37B,
Tuen Mun, has an area of 3,875 square metres. It was
bought by Brightwing Development Limited for $250 million,
which was the opening bid.
The developer has to complete a gross floor area of
not less than 14,990 square metres on or before March 31,
2001.
The lot is designated for non-industrial purposes,
excluding godown, petrol filling station, hotel and
service apartments.
The second lot, at Tong Yan San Tsuen, Yuen Long,
with an area of 2,040 square metres, was sold to Lead
Fortune Development Limited for $33 million, with bidding
opened at $20 million.
The developer has to complete a gross floor area of
not less than 1,220 square metres on or before March 31,
2001. The lot is intended for private residential
purposes excluding service apartments.
The auction was conducted by Government Land Agent,
Mr Herbert Leung Yuk-she, in the Concert Hall of the Hong
Kong Cultural Centre, Tsim Sha Tsui.
End
8. Voter registration closes on Friday
***********************************
With only a few days left before the deadline for
voter registration on January 16 (Friday), the acting
Director of Home Affairs, Mr Lui Hau-tuen, today (Tuesday)
urged those who have not yet registered to act now in
order to exercise their electoral rights.
Speaking at a voter registration exercise carried out
by the Home Affairs Department (HAD) at the site of the
Hong Kong International Airport at Chek Lap Kok, Mr Lui
called on all Hong Kong permanent residents aged 18 and
above who ordinarily reside in Hong Kong to register
without delay so that they would be able to cast a ballot
for the candidate of their choice on May 24 in the first
Legislative Council elections of the Hong Kong Special
Administrative Region.
Addressing hundreds of workers at the airport site
waiting to be registered by Voter Registration Ambassadors
(VRAs), Mr Lui said: "By taking part in the elections, you
will be helping to implement the concept of 'Hong Kong
People Ruling Hong Kong'."
"Popular support of the elections will also
demonstrate to the world our political maturity, and that
we are capable of exercising effectively the high degree
of autonomy promised us," he added.
Mr Lui said promotion for voter registration was
stepped up with the mobilization of 30,000 VRAs who began
calling on some two million households during the Voter
Registration Week on December 6 - 12.
"This was followed by more visits conducted in the
evenings by HAD district staff as well as VRAs to
households, major charitable and commercial organisations,
hospitals, various social service centres and the setting
up of mobile registration counters at high population
concentration areas.
"Our multi-facet approach has allowed us to collect
more than 470,000 voter registration forms as of today.
But we are not complacent and would like to register as
many eligible voters as possible," Mr Lui said.
End
9. ExCo approves Lantau taxi fare increase
***************************************
The Chief Executive in Council today (Tuesday)
approved an average 9.1 per cent increase in fares for
Lantau taxis with effect from March 2, 1998 to cover
increases in operating costs.
A government spokesman said Lantau taxi fares were
last revised by 10 per cent in July 1996.
"It is estimated that the operating costs of Lantau
taxis will be increased by 11.1 per cent between July 1996
(the date of the last increase) and March 1998 (the
implementation date of the new fares). The general
inflation rate for the same period, as measured by the
Consumer Price Index (A), is forecast to be 9.2 per cent,"
he said.
"The fare increase is in line with inflation and
should be acceptable to passengers."
The new fares are as follows -
Existing New
fares fares
Flagfall for the first 2 kilometres $11.00 $12.00
Fare for every subsequent 0.2 kilometre $ 1.10 $ 1.20
Waiting time charge for every 1 minute $ 1.10 $ 1.20
Telephone booking surcharge $ 5.00 $ 5.00
(Unchanged)
Surcharge for every article of baggage, $ 5.00 $ 5.00
animal or bird (Unchanged)
End
10. LD to set up new unit to promote effective communication
********************************************************
The Labour Department (LD)will set up a unit this
year to assist employees and employers in building up and
improving their communication channels.
Speaking at the department's first Award for
Effective Staff Communication presentation ceremony this
(Tuesday) afternoon, the Commissioner for Labour,
Miss Jacqueline Willis, said that it was a clear
indication of the department's commitment to promoting
staff communication and voluntary negotiation.
She said the Award for Effective Staff Communication
was organised to encourage, promote, and benchmark the
endeavours of local establishments in achieving effective
communication between employers and employees and
harmonious industrial relations.
"Although this is the first time that we hold such
event, we are very pleased with the overwhelming response
as over 60 companies have participated.
"This reflects that many companies in Hong Kong have
recognised the importance and benefits of good
communication with their employees and are putting it into
good practice," Miss Willis said.
Through a series of assessments and screening, a
total of 20 finalists were shortlisted to enter the final
stage of the award.
A panel of judges then selected 10 companies to
receive the gold award and another 10 the silver award at
today's presentation ceremony.
Miss Willis said the Labour Department had been
committed to promoting harmonious relations.
"We provide consultation service on matters relating
to conditions of employment, promote good labour-
management practices and help to resolve labour problems
and disputes.
"We have organised 16 Personnel Managers Clubs with
nearly 700 company members from major trades and
industries, which together employ over 200 000 employees.
"Through regular meetings of the Personnel Managers
Clubs and seminars organised by the Labour Department, we
invite human resources management professionals,
consultants and academics to explore issues on labour
relations, share experience in staff communication and
help promote enlightened management practices.
"Besides, we also organise training courses on the
Employment Ordinance on a regular basis. Through these
courses, we update the participants on the latest labour
legislation, and also spread the message of the importance
of effective communication between employers and employees
at enterprise level," Miss Willis said.
End
11. November external trade by country/territory and commodity
**********************************************************
In November 1997, the value of re-exports increased
by 6.3% over a year earlier to $106.7 billion, while that
of domestic exports, at $18 billion, was little changed
from a year earlier. Meanwhile, imports increased by 1.5%
to $133 billion.
The Census and Statistics Department today (Tuesday)
released detailed statistics on external trade with
breakdown by country/territory and commodity for November
1997.
Comparing November 1997 with November 1996, increases
of various magnitude were recorded in the value of re-
exports to most main destinations: the United Kingdom
(+23%), the United States (+14%), the Netherlands (+9.7%),
France (+8.2%), Taiwan (+6.5%), the mainland of China (the
Mainland) (+4.9%), Singapore (+3.4%), Germany (+3.3%) and
South Korea (+0.3%).
However, the value of re-exports to Japan decreased
by 4.8%.
Comparing the first eleven months of 1997 with the
same period in 1996, increases were recorded in the value
of re-exports to Taiwan (+11%), the Netherlands (+8.6%),
the United Kingdom (+7.8%), the United States (+7.6%),
France (+7%), the Mainland (+6.2%) and Singapore (+5.2%).
However, decreases were recorded in the value of re-
exports to Japan (-3.3%), Germany (-2.6%) and South Korea
(-2.1%).
Taking all destinations together, the value of re-
exports in the first eleven months of 1997, at $1,138.8
billion, increased by 4.7% over the same period in 1996.
Comparing the first 11 months of 1997 with the same
period in 1996, the value of re-exports of most principal
commodity divisions increased. More notable increases
were registered for office machines and automatic data
processing machines (by $14.1 billion or 22%);
miscellaneous manufactured articles consisting mainly of
baby carriages, toys, games and sporting goods (by $11.9
billion or 8.6%); electrical machinery, apparatus and
appliances, and electrical parts thereof (by $11.8 billion
or 10%); clothing (by $5.6 billion or 6%); textiles (by
$3.8 billion or 4.3%); and photographic apparatus,
equipment and supplies, optical goods, watches and clocks
(by $2.7 billion or 5.3%).
Over the same period, a decrease in the value of re-
exports was registered for telecommunications and sound
recording and reproducing apparatus and equipment (by $1.3
billion or 1.2%).
Comparing November 1997 with November 1996, increases
were recorded in the value of domestic exports to Taiwan
(+26%), the Netherlands (+17%), Canada (+9%), the United
States (+2.7%), the Mainland (+1.7%) and the United
Kingdom (+0.7%).
However, decreases were recorded in the value of
domestic exports to Singapore (-16%), Germany (-13%),
Japan (-4.7%) and France (-2.9%).
Comparing the first 11 months of 1997 with the same
period in 1996, increases were recorded in the value of
domestic exports to the Netherlands (+9.5%), France
(+8.9%), Taiwan (+4.3%), the Mainland (+3.4%), the United
States (+1.7%) and the United Kingdom (+0.1%). Meanwhile,
there was virtually no change in the value of domestic
exports to Canada.
However, decreases were recorded in the value of
domestic exports to Singapore (-16%), Germany (-9.5%) and
Japan (-6.6%).
Taking all destinations together, the value of
domestic exports in the first 11 months of 1997, at $192.7
billion, decreased by 0.6% over the same period in 1996.
Comparing the first 11 months of 1997 with the same
period in 1996, more notable decreases in the value of
domestic exports were registered for office machines and
automatic data processing machines (by $2.4 billion or
20%); textiles (by $995 million or 7.9%); manufactures of
metals (by $694 million or 18%); miscellaneous
manufactured articles consisting mainly of jewellery,
goldsmiths' and silversmiths' wares (by $589 million or
3.5%); and photographic apparatus, equipment and supplies,
optical goods, watches and clocks (by $540 million or
3.9%).
Over the same period, more notable increases in the
value of domestic exports were registered for electrical
machinery, apparatus and appliances, and electrical parts
thereof (by $2.3 billion or 8%); and clothing (by $2.1
billion or 3.3%).
Comparing November 1997 with November 1996, increases
were recorded in the value of imports from Germany (+15%),
Malaysia (+8%), the Mainland (+3.9%), Japan (+2.1%) and
Taiwan (+1.6%).
However, decreases were recorded in the value of
imports from Italy (-16%), Singapore (-4.1%), the United
Kingdom (-4.1%), the United States (-1%) and South Korea
(-0.7%).
Comparing the first 11 months of 1997 with the same
period in 1996, increases were recorded in the value of
imports from Malaysia (+14%), Germany (+14%), the United
Kingdom (+9.7%), Japan (+6.8%), the Mainland (+6.1%), the
United States (+3%), Taiwan (+1.1%) and South Korea
(+0.5%).
However, the value of imports from Singapore and
Italy decreased by 2.2% and 1% respectively.
Taking all sources together, the value of imports in
the first 11 months of 1997, at $1,477.3 billion,
increased by 5.2% over the same period in 1996.
Comparing the first 11 months of 1997 with the same
period in 1996, more notable increases in the value of
imports were registered for electrical machinery,
apparatus and appliances, and electrical parts thereof (by
$21.8 billion or 12%); office machines and automatic data
processing machines (by $16.7 billion or 23%); clothing
(by $9.9 billion or 10%); telecommunications and sound
recording and reproducing apparatus and equipment (by $9.7
billion or 7.5%); road vehicles (by $7.1 billion or 19%);
and miscellaneous manufactured articles consisting mainly
of baby carriages, toys, games and sporting goods (by $6.2
billion or 6.2%).
Over the same period, a more notable decrease in the
value of imports was recorded for textiles (by $2 billion
or 1.7%).
All the trade statistics described here are measured
at current prices and no account has been taken of changes
in prices between the periods of comparison.
A separate analysis of the volume and price movements
of external trade for November 1997 will be released in
early February.
Detailed trade statistics analysed by commodity and
by country/territory are published in trade statistics
reports.
The November 1997 issue of the "Hong Kong External
Trade" with detailed analyses on the performance of Hong
Kong's external trade in November 1997 will be on sale at
$111 per copy around January 23.
The report can be purchased at either the Government
Publications Centre, ground floor, Low Block, Queensway
Government Offices, 66 Queensway, Hong Kong, or the
Publications Unit of the Census and Statistics Department,
19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong
Kong.
Enquiries regarding regular subscription to this
report may be directed to the Publications (Sales) Office
of the Information Services Department at 28th floor, Siu
On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (Tel.
2598 8194) and enquiries on trade statistics to the Census
and Statistics Department (Tel. 2582 4915).
End
12. Business receipts indices for service industries
************************************************
Business receipts in most of the service industries
showed year-on-year increases of various magnitudes in
value terms in the third quarter of 1997.
Comparing the third quarter of 1997 with the same
quarter a year earlier, the value of business receipts in
the financing (except banking) industry registered the
fastest growth, by 66%. This was followed by the
communications industry which recorded a 26% increase in
business receipts over a year earlier. Business receipts
in the tourism, convention and exhibition services domain
and the hotels industry however dropped by 21% and 15%
respectively.
These are the provisional figures on the 1996-based
business receipts indices for service industries released
today (Tuesday) by the Census and Statistics Department.
The robust increase in business receipts in the
financing (except banking) industry was due to
significantly higher stock market turnover and strong
performance of the capital market in the third quarter of
1997. Reflecting this, within the financing (except
banking) industry, the financial markets and fund
management sector recorded triple-digit growth of 131% in
business receipts.
The surge in business receipts in the communications
industry was attributable to the rapid expansion of the
telecommunications industry. Along with the significant
increase in the number of customers demanding public
mobile radiotelephone services, business receipts of the
telecommunications industry continued to go up, by 26%.
Meanwhile, considerable increases in business
receipts were also registered in the real estate (+12%),
business services (+12%), insurance (+12%) and banking
(+10%) industries.
As regards the hotels industry, business receipts
dropped by 15% in value terms when compared with the third
quarter of 1996. Affected partly by the currency turmoil
in East Asia, there was a steep decline in the total
number of tourist arrivals in the third quarter of 1997,
leading to some shrinkage in hotel rentals and related
receipts in the quarter.
Along with a considerable decrease in tourism
receipts, the business receipts of the tourism, convention
and exhibition services domain were also lower than the
same quarter in 1996, by 21%.
As for the computer and related services domain, the
business receipts recorded an increase of 15%. This was
mainly attributable to an improvement in business of
trading of computer equipment.
Compared with the second quarter of 1997, and bearing
in mind that this comparison might be affected by seasonal
factors, increases in business receipts were recorded in
all service industries except hotels, real estate and
wholesale industries.
A major source of data used for compiling the
business receipts indices is a Quarterly Survey of Service
Industries (QSSI) launched by the Census and Statistics
Department in 1993.
Regarding the tourism, convention and exhibition
services domain, part of the data is obtained from the
Hong Kong Tourist Association.
A service domain differs from a service industry in
that a domain comprises those parts of economic activities
straddling different industries but somehow related to a
common purpose. It may include all activities carried out
by all establishments in a service industry that is
closely related to the domain. In some other cases,
however, only a portion of the establishments in an
industry or even only part of the establishments'
activities are related to the domain. Tourism is a good
example. It includes all activities of travel agents; and
some (those involving visitors as customers) but not all
of the activities of restaurants, retailers and transport
operators.
Details on the compilation method of the business
receipts indices are given in the report "Quarterly
Business Receipts Indices for Service Industries, Third
Quarter 1997", which is now on sale at $8 per copy at the
Government Publications Centre of the Information Services
Department, Ground Floor, Low Block, Queensway Government
Offices, 66 Queensway, Hong Kong. It can also be
purchased from the Publications Unit of the Census and
Statistics Department, 19th floor, Wanchai Tower, 12
Harbour Road, Wan Chai, Hong Kong.
Enquiries about the survey results may be directed to
the Business Services Statistics Section of the Census and
Statistics Department on 2894 8120.
End
13. Ad hoc committee to discuss housing for the elderly
***************************************************
The Ad Hoc Committee on Housing and Residential Care
of the Elderly Commission will meet this Thursday (January
15) afternoon to continue the discussion of the direction
on community and residential care for the elderly.
The meeting, chaired by Mr Moses Cheng, will also
discuss the Bought Place Scheme and the continuum of
residential care services for the elderly.
The Housing Department will give a presentation at
the meeting on the development of housing and elderly
service units at Tak Tin Estate site, Lam Tin.
End
14. Weather of December 1997
************************
December 1997 was warmer than normal, the mean
temperature of 18.9 degrees was the seventh highest for
the month. The mean minimum temperature of 17.1 degrees
ranked the sixth highest for December.
On the other hand, the total bright sunshine duration
of 100.4 hours was 81.1 hours below normal and stood the
fourth lowest for December. Furthermore, the mean monthly
total cloud amount of 64 per cent was 15 per cent higher
than normal.
Although the total rainfall in December was only 6.5
millimetres against a normal of 27.3 millimetres, the
annual total of 3,343.0 millimetres was 51 per cent above
the normal figure and this makes 1997 the wettest year for
Hong Kong on record.
The weather was fine and warm during the day on
December 1 with temperatures rising to 25.2 degrees, the
highest in the month. A surge of the northeast monsoon
reached the south China coast late in the afternoon and
strong northerly winds prevailed offshore during the
night. Winds moderated early on December 3 and the
weather was mainly cloudy with some light rain patches
till December 7.
Mist patches formed on the morning of December 7, but
were cleared by the passage of a cold front later that
morning. Strong northerly winds affected local areas for
two days with the dry northerly airstream also clearing
the clouds. Temperatures dropped to 12.4 degrees, the
lowest in the month, on December 9. Over the northern
part of the New Territories, temperatures dropped to below
10 degrees the next morning.
It became mainly cloudy again on December 11. Winds
turned northeast on December 14 and the weather became
fine with long sunny periods the next day. Winds became
light on December 16 and there were mist patches the next
day. Misty condition in the morning persisted for the
next few days.
Light rain patches began to affect our area on
December 21. Rain was heavy over the Peak area on Hong
Kong Island and over Tung Chung on Lantau early next day
when a weak cold front crossed the south China coast and
cleared the mist. Rain eased off during the day on
December 23 but the weather remained cloudy. It became
fine and sunny on December 25. Apart from some light rain
patches on December 26, mainly fine weather prevailed till
the end of the year.
Only one tropical cyclone occurred in the western
North Pacific in the month. Details of the
issuance/hoisting and cancellation/lowering of various
warnings/signals in the month are summarised in Table 1.1.
Monthly meteorological figures and departures from normal
of December are tabulated in Table 1.2.
Table 1.1 Warnings and Signals in December 1997
------------------------------------------------
Beginning Time Ending Time
Type of Warnings/Signals day/month hour day/month hour
------------------------ --------------- --------------
Strong Monsoon Signals 1/12 1800 3/12 0630
7/12 1345 9/12 0600
Fire Danger Warnings
Red 2/12 0600 2/12 1800
Red 8/12 0600 12/12 0600
Yellow 12/12 0600 15/12 0600
Yellow 25/12 0600 26/12 1800
Gas Water Heater Safety 8/12 1630 10/12 1630
Alerts
Table 1.2 Figures and Departures from Normal -
December 1997
------------------------------------------------
Figure of Departure from normal
Meteorological Element the month above normal below normal
---------------------- --------- ------------ ------------
Total Bright Sunshine 100.4 ---- 81.1
Duration(hours)
Mean Daily Global 8.64 ---- 3.39
Solar Radiation (MJ/Square Metre)
Total Rainfall(mm) 6.5 ---- 20.8
Mean Cloud Amount(%) 64 15 ----
Mean Relative Humidity(%) 75 7 ----
Mean Daily Maximum Air 20.9 0.4 ----
Temperature (Degree Celsius)
Mean Air Temperature 18.9 1.3 ----
(Degree Celsius)
Mean Daily Minimum Air 17.1 1.7 ----
Temperature (Degree Celsius)
Mean Dew Point 14.3 3.1 ----
(Degree Celsius)
Total Evaporation(mm) 68.9 ---- 42.6
Remarks: All measurements were made at the Hong Kong
Observatory except sunshine, solar radiation and
evaporation which were recorded at King's Park
Meteorological Station.
End
15. Weather of 1997
***************
The year 1997 was the wettest year since records
began in 1884. Rainfall at the Hong Kong Observatory
amounted to 3,343.0 millimetres, 51 per cent above normal
and exceeding the previous record set in 1982. Over 70%
of the rain fell between June and August.
The year's extreme rainfall coincided with an
exceptionally strong El Nino event in the equatorial
Pacific. The first tropical cyclone to affect Hong Kong
did not come until the last day of July, which was the
latest in any year on record.
The passage of Typhoon Victor on August 2
necessitated the hoisting of the Increasing Gale or Storm
Signal No. 9, which was the highest warning signal since
Typhoon Ellen in 1983.
The year's total duration of bright sunshine of
1,558.2 hours was the shortest recorded. Also, the annual
mean temperature was 23.4 degrees making 1997 the fourth
warmest year on record.
January was warmer and wetter than normal. The
monthly mean temperature of 16.7 degrees and total
rainfall of 44.6 millimetres were 0.9 degrees and 21.2
millimetres higher than the respective averages.
The wet weather continued into February. The monthly
rainfall totalled 111.7 millimetres which was 63.7
millimetres above normal.
Sunnier and warmer weather was observed in March and
the total sunshine duration amounted to 129.3 hours, 32.9
hours more than normal. As a result, the monthly mean
temperature reached 20.1 degrees, the seventh highest for
March.
Cloudy conditions prevailed for most of April. The
total bright sunshine duration was only 73.6 hours, the
10th lowest April record. The month was also
characterised by misty weather.
The weather in May was typical of the season in terms
of precipitation. Heavy rain occurred on May 8,
necessitating the issuance of the first Rainstorm Red
Warning and Landslip Warning in the year.
Active troughs of low pressure brought a total
rainfall of 783.6 millimetres in June making it the
seventh wettest June on record. There were four days with
rainfall exceeding 100 millimetres recorded at the
Observatory.
Exceptionally heavy rain associated with low pressure
troughs continued in July. The month's total rainfall of
746.0 millimetres made it the fourth highest for the month
of July and the accumulated rainfall since January 1 of
2,154.7 millimetres was 64 per cent above normal. A
Rainstorm Black Warning was issued on July 1 and Rainstorm
Red Warnings were required on the first three days of the
month. Landslip and Flood Warnings were also issued on
two and eight occasions respectively. Furthermore, the
month's total bright sunshine duration of 125.1 hours was
the lowest on record. The first Tropical Cyclone Warning
Signal of the year was hoisted on the last day of the
month due to the approach of Typhoon Victor, which was the
latest on record.
The approach of Typhoon Victor in the late afternoon
on August 2 necessitated the hoisting of the Increasing
Gale or Storm Signal No. 9, the highest tropical cyclone
warning signal since Typhoon Ellen in 1983. Victor then
weakened into a Severe Tropical Storm, but it still
brought cyclonic storm force winds before it made landfall
over the western part of Hong Kong that evening. During
the passage of Victor, a man was drowned near Stanley as
he tried to rescue two people swept away by high seas.
About 60 people were injured in other storm related
incidents. Torrential rain and thunderstorms caused three
reported cases of landslips and 20 of flooding. In late
August, Typhoon Zita brought more heavy rain to Hong Kong.
A total of 829.0 millimetres of rainfall was recorded,
making this August the fourth wettest on record.
September was cooler than normal and the mean
temperature of 26.4 degrees was the eighth lowest for the
month. With no tropical cyclones in our vicinity, the
monthly mean pressure reached 1,012.1 hectopascals, the
highest on record for September.
The rainfall in October amounted to only 112.8
millimetres or 32.0 millimetres below average. However,
the accumulated rainfall since January 1 of 3,329.4
millimetres was 55 per cent above the normal figure,
surpassing the previous record maximum annual rainfall of
3,247.5 millimetres set in 1982.
A weak northeast monsoon coupled with an unseasonal
southerly airstream gave rise to the warmest November on
record. The mean temperature of 23.1 degrees equalled to
the previous record set in 1966. The mean minimum
temperature of 21.2 degrees also ranked highest for
November.
December was also warmer than normal with a mean
temperature of 18.9 degrees, the seventh highest for the
month. However, the total bright sunshine duration of
100.4 hours was the fourth lowest for December.
End
16. Company fined for breaching Inland Revenue Ordinance
****************************************************
A company was fined $4,000 for failure to notify the
Commissioner of Inland Revenue in writing not later than
one month before an employee's cessation of employment
with the company and departure from Hong Kong.
The defendant, Towry Law International Ltd, pleaded
guilty in the Western Magistracy todday (Tuesday) to the
charge.
The defendant employed and paid salary to the
employee during the period from May 18, 1993 to January 9,
1996. However, the defendant failed to give advance
notice to the Commissioner of Inland Revenue regarding the
employee's cessation of employment and departure from Hong
Kong as required under the Inland Revenue Ordinance.
This matter was uncovered when the Commissioner of
Inland Revenue was unable to recover salaries tax in the
sum of $52,739.
End
17. Tender for sixth issue of 10-year Exchange Fund notes
*****************************************************
The Hong Kong Monetary Authority announced today
(Tuesday) that the tender for the sixth issue of 10-year
Exchange Fund notes will be held on January 19 (Monday)
for settlement on January 20 (Tuesday).
An amount of HK$500 million 10-year notes will be
offered. Another HK$100 million will be held as reserve
by the Hong Kong Monetary Authority for supply to Market
Makers in the secondary market. The notes will mature on
January 21, 2008 and will carry interest at the rate of
9.89% per annum payable semi-annually in arrears. Terms
and conditions of the issue are described fully in the
Information Memorandum.
Members of the public who wish to tender for the
Notes may do so through any of the Market Makers or
Recognised Dealers on the published list which can be
obtained from the Hong Kong Monetary Authority at 30th
floor, 3 Garden Road, Hong Kong (or telephone 2878 8150).
Each tender must be for an amount of HK$50,000 or integral
multiples thereof.
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
Tender information for the sixth issue of 10-year
Exchange Fund notes:
Issue Number : 1801
Tender Date and Time : Monday 19 January 1998,
9.30 am to 10.30 am
Issue and Settlement Date : Tuesday 20 January 1998
Amount on Offer : HK$500 million plus an
additional HK$100 million
as reserve stock for the
Monetary Authority
Maturity : Ten years
Maturity Date : 21 January 2008
Interest Rate : 9.89% per annum payable
semi annually in arrears
Interest Payment Dates : 20 Jul 1998, 20 Jan 1999,
20 Jul 1999, 20 Jan 2000,
20 Jul 2000, 22 Jan 2001,
20 Jul 2001, 21 Jan 2002,
22 Jul 2002, 20 Jan 2003,
21 Jul 2003, 20 Jan 2004,
20 Jul 2004, 20 Jan 2005,
20 Jul 2005, 20 Jan 2006,
20 Jul 2006, 22 Jan 2007,
20 Jul 2007, 21 Jan 2008
Tender Amount : Each tender must be for an
amount of HK$50,000 or
integral multiples thereof.
Members of the public who
wish to tender for the Notes
may approach Market Makers or
Recognised Dealers on the
published list
Other details : Please see Information
Memorandum published or
approach Market Makers or
Recognised Dealers
End
18. Hong Kong Monetary Authority tender results
*******************************************
Tender date : 13 January 1998
Paper on offer : EF Bills
Issue number : Q802
Issue date : 14 January 1998
Maturity date : 15 April 1998
Amount applied : HK$8,340 MN
Amount allotted : HK$2,000 MN
Average yield accepted : 11.72 PCT
Highest yield accepted : 12.00 PCT
Pro rata ratio : About 31 PCT
Average tender yield : 12.96 PCT
- - - - -
Tender date : 13 January 1998
Paper on offer : EF Bills
Issue number : H855
Issue date : 14 January 1998
Maturity date : 15 July 1998
Amount applied : HK$4,430 MN
Amount allotted : HK$1,000 MN
Average yield accepted : 11.66 PCT
Highest yield accepted : 11.84 PCT
Pro rata ratio : About 6 PCT
Average tender yield : 12.76 PCT
- - - - -
Hong Kong Monetary Authority
****************************
Tender to be held in the week beginning - 19 Jan 98:
Tender date : 19 January 1998
Paper on offer : EF Notes
Issue number : 1801
Issue date : 20 January 1998
Maturity date : 21 January 2008
Tenor : 10 Years
Amount on offer : HK$500 + 100 MN
Coupon : 9.89 PCT
- - - - -
Tender date : 20 January 1998
Paper on offer : EF Bills
Issue number : Q167
02
Issue date : 21 January 1998
Maturity date : 18 February 1998
Tenor : 28 Days
Amount on offer : HK$5,000 MN
- - - - -
Tender date : 20 January 1998
Paper on offer : EF Bills
Issue number : Q803
Issue date : 21 January 1998
Maturity date : 22 April 1998
Tenor : 91 Days
Amount on offer : HK$2,000 + 500 MN
- - - - -
Tender date : 20 January 1998
Paper on offer : EF Bills
Issue number : Y885
Issue date : 21 January 1998
Maturity date : 20 January 1999
Tenor : 364 Days
Amount on offer : HK$500 + 150 MN
End
19. Fresh water cut in Yau Ma Tei
*****************************
Fresh water supply to some premises in Yau Ma Tei
will be suspended from 11 pm on January 16 (Friday) to
6 am the following day for waste detection work on
watermains to be carried out.
The suspension will affect all premises in the area
bounded by Kansu Street, Canton Road, Jordan Road and
Ferry Street.
End
