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




Wednesday, January 14, 1998



CONTENTS
========
1.  Acting CS's transcript
2.  CS meets the media in LA
3.  CS's transcript of Q&A at LA luncheon
4.  Measures to deal with ducks considered
5.  Update on avian flu
6.  Chief Secretary continues hectic programme in Los Angeles
7.  HK dollar will not be delinked: CS
8.  Speech by CS in Los Angeles
9.  CE meets US Deputy Treasury Secretary
10. Water discharged from Shenzhen Reservoir
11. Water discharge from Shenzhen: Hong Kong still on alert
12. Introduction of Compulsory Sale for Redevelopment Bill
13. Voter registration exercise to close on Friday
14. Aid for earthquake victims
15. MOU on environmental collaboration between HK and Canada
16. Time limit for objections to reclamation projects
17. Informal exchange on Code on Access to Information
18. No valid bids for Baguio Villa flats
19. Applications for Industrial Support Fund 1998/99
20. CAL software on traditional Chinese character
21. New footbridge helps pedestrians crossing Lung Poon Street



1.  Acting CS's transcript
    **********************

     Following is the transcript (English part) of the
media session by the acting Chief Secretary for
Administration, Mr Michael Suen, at the Provisional
Legislative Council building this (Wednesday) afternoon:

Reporter: Why not slaughter the ducks and what is the next
step forward?

Mr Suen: Today, the Co-ordinating Committee held the
meeting in the morning and among the things that we have
discussed is the report that we have received from the
Hong Kong University which they have undertaken before the
slaughter of chickens and ducks before the end of last
year.  You will recall that we have collected samples from
market places and also samples from the duck farms in Hong
Kong.  And from the results that we've got, supplied to us
by Hong Kong University, it seems to indicate that all the
samples collected from duck farms all show that the state
of health of our ducks in Hong Kong is in good condition.
In other words, there is no positive test results being
obtained from those samples.

     But there are other test results obtained from
samples in the market places which show positive reaction
to H5N1.  There are about 30-odd samples of chickens which
showed this positive reaction, and about a few geese, and
about five to six ducks.

     We are not certain at this point in time, as to
exactly the main cause of the positive results.  It might
be the result of cross-contamination.  It might be a
direct result of other causes.  But we need time to look
into this particular aspect.  But judging from the fact
that ducks and geese and chickens react differently to
this H5N1 virus, in that chickens do drop dead immediately
upon contacting this virus, whereas ducks, they are
intermittent carriers in the sense that the virus doesn't
seem to affect the state of health of the ducks but they
are within the body, and the virus might be discharged
intermittently through the droppings.  From this point of
view, because of this difference in characteristics, and
having regard to the fact that we have slaughtered all the
chickens, all the ducks that we have imported, leaving
only live ducks in our own farms which are given a clean
bill of health, we have taken the preliminary conclusion
that there is not enough evidence to support any
suggestion for the slaughter of ducks.  And indeed, it
does not really help matters, slaughtering ducks, and so
our present inclination is not to slaughter ducks.  But,
of course, after the further examinations, we will come to
a definite conclusion.  But I must state, at this point in
time, the chances of our changing our mind is very, very
slim.

Reporter: During the last month's slaughter, did you
actually get rid of all the ducks that are actually
carriers?  And how can you ensure in future that ducks
wouldn't infect chickens?

Mr Suen: I can't say for sure that we have slaughtered all
the ducks that are carriers.  We have slaughtered all the
ducks we've found in market places.  Of course we have
stopped all the import of ducks and chickens and so there
is no more supply to Hong Kong.  At the moment we've got
ducks kept in farms in Hong Kong, and as I just said, from
the results of the sample tests that we have got so far,
there is no indication that the local population of ducks
is in any way affected by the virus.

     But I don't think it is for us, now, to give any
assurance that our ducks will be free of the virus
because of the nature of the virus affecting the ducks, as
I have explained, they are intermittent carriers.  And I
think the main point to bear in mind is that in order to
minimise the chances of cross-infection, the best way to
deal with it is to make separate arrangements for dealing
with ducks on the one hand and chickens on the other.  We
are working, now, on a proposition which involves the
import of chickens directly from outside sources going
through our wholesale system into the retail market and to
allow the slaughter of chickens in a proper manner in the
scalding rooms in the markets.  But we are not inclined to
allow the same treatment for ducks because we want to
separate ducks from chickens.  And so, at the moment we
are working on various options for dealing with ducks.
I'm afraid within the limited time available to us we have
not been able, so far, to come up with a viable
proposition for dealing with ducks.  We hope that before
an announcement of a formal package as to what to do, we
would have come to a viable proposition for ducks.

End


2.  CS meets the media in LA
    ************************

     Following is the transcript (English part) of the
meet-the-media session by the Chief Secretary for
Administration, Mrs Anson Chan, in Los Angeles this
afternoon (US time Tuesday, January 13):

Good afternoon Ladies and Gentlemen,

     First of all I would like to apologise for keeping
you waiting.  I am afraid the last event went rather
beyond the allotted time.  I am very glad to be back in
Los Angeles.  I last visited about 1 1/2 years ago.  That
was exactly a year before the handover.  I am glad to be
back in Los Angeles once again.  This is the first
promotional visit I have undertaken since the handover on
July 1 and this trip will take in Los Angeles, Miami, San
Francisco, but I will also be going to Canada, to Toronto
-- and Ottawa.  This will be a combined business,
promotional and tourism, and introducing cultural aspects
of Hong Kong.  It serves to underline the strong links
between America and HK.  I hope very much that through
this visit I will be able to give an account of how the HK
Special Administrative Region has fared in the first six
months of its existence, since the reversion of
sovereignty to China.  I will be able to talk about the
economic strength of HK and the opportunities available in
Hong Kong, notwithstanding the current difficulties with
the financial turmoil in Asian economies, and also with
the "Bird Flu".  Perhaps to address any other concerns the
American people may have in Hong Kong and in its future.
We will continue to make such promotional visits in the
months and years ahead because we feel it is very
important that people here and elsewhere, particularly in
our major trading markets, understand the real situation
in Hong Kong and appreciate the vast opportunities that
are available in Hong Kong; both as a place for investment
in our own life, and of course as the pre-eminent gateway
to China.  Thank you very much.

Question: (inaudible)

Mrs Chan: I wouldn't quite describe the date we have
chosen for the start of operations at the new airport as
delayed.  Our intention has always been and remains that
the airport shall open when everything is ready, that is
the passenger terminal building, cargo handling, the
necessary transport infrastructure, and all the ancillary
activities and services that go with a first class
international airport.  That is what we intend Chap Lap
Kok to be, a first class international airport on day one.
We have taken into account all relevant factors including
that the passenger terminal building as advised by the
Airport Authority will be ready on schedule and within
budget, that is in April.  We are also taking account of
the fact that the airport railway will not be completed
until June.  Of course we always knew this, although we
were hoping it might be possible for the MTRC to complete
the airport railway ahead of schedule.  Having regards to
our main objective of opening on day one as a first class
international airport certainly better than the facilities
available at Kai Tak at present, we have decided that in
all circumstances, opening on July 6 is the most
appropriate date.  There are no other considerations
involved.  I emphasise no other considerations.

Question: (inaudible)

Mrs Chan: Sorry the 5.5 per cent is of course for 1997 as
a whole.  That is on the year past.  What I was saying is
that clearly in the wake of financial turmoil, growth this
year and perhaps in subsequent years will undoubtedly slow
by how much, we do not as yet know.  I think you will have
to wait and so far as the 1998 forecast, it is a concern
for the FS's budget on February 18.

Question: (inaudible)

Mrs Chan: I do not think I want to take any predictions at
present.

Question: (inaudible)

Mrs Chan: I would say this, I think I feel comfortable
about working with every of my senior officers since I
joined the civil service many, many years ago.  Every
governor, every chief executive, has his or her different
style, different personality, different convictions, but I
would say everybody I have worked with, worked under,
including more particularly Mr Tung -- has Hong Kong's
real interest at heart and wishes to do well by Hong Kong.
I am glad to be able to say that I work very well with Mr
Tung and we are very determined that the team will support
him in ensuring Hong Kong's stability and prosperity and
faithful implementation of the "One Country, Two Systems",
and "Hong Kong people ruling Hong Kong".

Question: (inaudible)

Mrs Chan: I am not sure whom you have spoken to.  I don't
deny that there may be individual members of the civil
service who perhaps felt that their contributions and
their achievements have not received the recognition that
they deserve.  I am equally sure that individual members
of the civil service may feel that in today's highly
politicised atmosphere their work is made more difficult.
Of course one can understand that given the uncertainties,
the political uncertainties created before the handover,
particularly uncertainties as regards whether one can
continue in the post after 1997 -- that must have to a
certain extent affected sentiment.  From that point of
view, the fact that Mr Tung asked myself and all senior
officials to stay in their posts, the fact there has been
maximum continuity in the civil service I think has been a
very stabilising factor.  I myself feel that morale within
the civil service is very high, wastage is very low and
particularly the number of people leaving in the senior
ranks, in the Directorate ranks of the civil service is at
an all time low.  That does not suggest to me that there
is a problem about morale and working enthusiasm.
Certainly from where I sit, I think all my colleagues work
very, very hard in serving the community of Hong Kong.
They realise there are a number of problems they have to
deal with, and they have to be accountable to the
legislature.  Thank you.

End


3.  CS's transcript of Q&A at LA luncheon
    *************************************

     Following is the transcript of the question and
answer session by the Chief Secretary for Administration,
Mrs Anson Chan, at the luncheon jointly organised by the
Los Angeles World Affairs Council, the Asia Society and
the Hong Kong Trade Development Council in Los Angeles
this afternoon (US time, Tuesday, January 13, 1998):

Q: HK's government has used land premium land sales as a
dominant source of fiscal revenues, with property prices
falling so sharply, how long can HK's tax rate remain at
its present low level?

A: Land premium and land sales are not in fact the
dominant source of our income.  It is an important source,
but our revenue principally comes from salaries and
property tax.  I think that trend will tend to continue.
We are committed under the Basic Law to maintaining a low
tax regime.  We realise very well in HK that one of the
key attractions of HK is apart from all our other
qualities, is the fact that we have a low, predictable,
and simple tax regime that everybody can understand.  We
have no intention of changing that simple tax regime.  Of
course, forever is a long time, and I am not saying that
forever salaries tax will remain at 15%, but it will be
long.

Q: A question on the overall Asian financial crisis as we
have come to know it here: two different pictures are
presented, while many in Asia believe that part of the
problem was created by U.S. speculators, others here see
it as Asian government corruption and incompetence -- what
do you see as the problem, and what do you see as the
steps being taken to prevent future problems?

A: That is a very loaded question.  I think there are
speculators and speculators and I will not attribute
speculators to any particular nationality.  I think there
are foreign speculators and there are local speculators.
I think the current financial turmoil has demonstrated
that perhaps there is a need for some fundamental
structural changes in the economies of a number of Asian
countries.  There appears to be an appreciation on the
part of the governments of these countries -- there is a
need for fundamental change.  Hopefully, having gone
through a painful period, and it will be painful -- not
just for these countries, but also for countries in other
regions -- because we are living in a global village where
economies are increasingly intertwined -- but, at the end
of the day given that the fundamentals in some of these
economies are still quite strong -- I think everybody
hopes we will see perhaps some of the excesses trimmed,
more transparency and accountability, better corporate and
public governance and generally a higher degree of
accountability.  I think on that basis, Asian economies
will continue to grow perhaps more strongly than before.

Q: When you came here a year and one half ago, you raised
the issue of press censorship and press self censorship,
as one of your concerns, to what extent has press self
censorship affected the democratic movement in HK?

A: I am extremely pleased to be able to say with an
absolutely clear conscience that the press remains as free
today as it was before the 30th of June.  Indeed, they
remain as critical as ever, of government, of the
Administration -- and you can be sure that if we are not
performing up to scratch then we read about it everyday in
our newspapers and on our TV screens.  There have been
suggestions and anecdotal evidence of self censorship.
The first point I would make is of course self censorship
has not come about because of the encouragement or the
insistence of the Administration.  Indeed I think I have
personally stated on several occasions, that we encourage
a free press, a responsible press, that will report
objectively, impartially and in a balanced fashion.  That
remains the view of the Administration.  The government
has and will continue to do its share to ensure that the
press remains free, and enjoys the rights and freedoms
guaranteed under the Basic Law.  But, there is an
important role also to be played by the practitioners
themselves.  That is, by proprietors, by reporters, by
journalists.  They too, have to do their share to protect
the integrity of their profession.

Q: You spoke earlier of Singapore basically, do you
believe that Shanghai will develop sufficiently to
challenge HK's position in banking and trade?

A: I have to say that on this visit I have been somewhat
surprised that so far until this afternoon I have not had
a question about the competition posed by Shanghai.  Of
course I am happy to answer that question having visited
Shanghai, which is my birthplace just about 3 months ago.
Yes, I think Shanghai will pose a degree of competition
for HK, but it is healthy competition.  We in HK know from
experience that competition keeps us on our toes, and
helps us improve our services, and our performance.  I
think essentially, Shanghai and HK have different
economies; to a large extent Shanghai is an industrial
economy, whereas increasingly in HK we are a service
dominated and financial center.  Of course, with different
primary hinterlands.And in the longer run perhaps Shanghai
will service more of the interior and the northern part of
China and HK will service southern China.  For one thing,
we have the best deep water port on the entire South China
coast.  I think we will remain the main conduit for south
China trade with the rest of the world for many, many
years to come.  When I was in Shanghai 3 months ago, the
Deputy Mayor of Shanghai described HK and Shanghai in
these terms.  He likened Shanghai and HK to two beacons
shining along the Asian economic corridor that includes
not just HK, Shanghai and China but also Malaysia,
Singapore, Thailand, Indonesia, etc.  He said that the
more HK and Shanghai shine, the better the performance of
this economic corridor.  He did not see Shanghai replacing
HK for example, in terms of our port facilities and the
excellence of our infrastructure.  So, to conclude, I
think HK and Shanghai plays a complimentary role -- and in
a vast place like China, just as in America and in the
United Kingdom, there is surely scope for several major
financial and services centers.

Q: Public opinion polls regularly show that affordable
housing is the number one concern of the HK people.  What
is the new SAR government doing to improve the housing
situation for middle class people in HK?

A: It is indeed a main concern of the community.  It was
because of this that the Chief Executive in his first
policy address to the provisional legislative council in
October of last year, set out an ambitious program of
constructing new housing units.  To be precise, 85,000 new
housing units every year from the year 1999 onward.  It
would be our aim to achieve 70% home ownership by the year
2007.  This is a very ambitious program but the
Administration is geared up to ensure that sufficient land
is available to meet this target, and sufficient resources
including labor resources are there to help achieve this
target.  Of course, the recent financial turmoil in a good
sense will also have a beneficial impact in terms of
causing a consolidation in the property sector.  The
prices of real estate, particularly residential
accommodation in HK in recent years, have accelerated
very, very sharply.  So much so, that housing was beyond
the affordability of the average man in the street.
Clearly, this is not the way to go.  This current
financial turmoil, whilst it has its down side, will at
least cause consolidation in the property sector, bring
down property prices so that they are once again within
the reach of the average man.

Q: One more thing here on the financial crisis -- What
effect will Peregrine's failure have on HK's investment
community?

A: Peregrine is an isolated case.  Peregrine is not a
bank, nor is a deposit taking company, so I do not think
it will have any long lasting impact -- either on the
financial sector as a whole in HK or on the banking
sector.  Our banking sector is well regulated and
supervised, as I pointed out it has high capital adequacy
ratios, very low bad debts, and is not over exposed to
either the property sector or to the economies that are
currently in difficulties.

Q: Many HK expatriates here in the U.S. left HK because of
fear, would you encourage many of them to return for good?

A: I certainly would do that but I don't think they need
any encouragement from me because we have in recent years
been seeing substantial numbers coming back from places
like America, Canada and Australia.  I think that
notwithstanding the difficulties we are currently
experiencing, HK remains a good place in which to live and
work.  We would certainly welcome back and new numbers
coming into HK.

Q: Would you agree that China continues to persecute its
people for matters of conscience and faith, and corruption
is still widespread in government and the economy.  If so,
does that mean that the long term prospects for HK are not
at least marginally worse?

A: I don't think it is really for me as an official of the
SAR government to comment on the policies of our sovereign
power except to say this: I think Chinese leaders realise
very well, that there are problems that have to be tackled
within China.  I think we in HK realise that China is a
vast country with still many of its people who are very,
very poor by any standards, and whose basic needs at the
moment are not yet being met.  I think Chinese leaders are
doing their level best to cope with these problems and to
move forward step by step towards a democratic society.  I
think being an official in HK, I realise only too well the
array of problems that one has to deal with, and quite
frankly, at the end of the day you have to concentrate on
the immediate task, that is not to acknowledge that there
are not problems elsewhere.

     The second part of the question, China has put its
name to the Joint Declaration that promises a high degree
of autonomy with HK people ruling HK.  In essence, that
means retaining the rights and freedoms that HK people
have enjoyed, and the lifestyle we had before the 30th of
June, 1997.  All the indications are that they are
absolutely committed to this as evidenced by their lack of
interference and trust and confidence in the SAR
government in the first six months of our existence.  I
have no reason, and I do not believe that they will
interfere in subsequent months or years ahead.  I think
Chinese leaders have a very, very clear appreciation that
it is only by maintaining HK's current lifestyle, its
rights and freedoms, its economic, political, and social
systems that HK can best assure its stability and
prosperity and in term, be in a position to assist China
in its open door policies and its modernisation and
economic growth.  With economic growth, I believe
personally myself, that there will be increasingly
political liberalisation.

Q: Has the religious community in this case, has defined
for us as "Christian" and "Buddhist" -- been disturbed or
undisturbed since the handover of HK?

A: Absolutely not.

Q: The first Chinese Consul General in Los Angeles was Ma
Yuzhen.  Could you please describe for us what his
function is in Hong Kong?

A: Commissioner Ma represents the central government in
HK, in terms of central government's responsibility for
foreign relations.  Since his arrival in HK, we have
established extremely good working relationship with
Commissioner Ma.  He made it very clear on arrival that he
is there and his staff to faithfully implement the concept
of One Country, Two Systems, HK people ruling HK.  He has
not interfered in any way in the administration, he is
there to facilitate and support the SAR government.  There
is not a subordinate relationship between the SAR and
Commissioner Ma and his office.  Rather, on all issues
that we have dealt with his office so far, he has shown a
ready understanding and willingness to look at issues from
our point of view, to convey our concerns to central
government, and in all ways that he can to facilitate our
continued participation in international affairs.  To
assist HK in carrying out our economic activities.  On the
economic front we have a high degree of autonomy.  But
there are certain participation in international
organisations or the conclusion of bi-lateral and multi-
lateral treaties where we do not conclude in our own right
but are a part of the PRC government. In short, we have
found Commissioner Ma extremely helpful and understanding.
It is a relationship built on mutual trust, understanding
and cooperation.

End


4.  Measures to deal with ducks considered
    **************************************

     The Administration was actively exploring the
possibility of segregating ducks and chickens as a measure
to prevent the spread of H5N1 virus, the acting Chief
Secretary for Administration, Mr Michael Suen, said today
(Wednesday).

     Mr Suen confirmed that the Government had received
the surveillance results on poultry from the Hong Kong
University.  The results indicated that ducks in local
farms were not infected with the H5N1 virus.  However,
some samples of chickens, ducks and geese collected at
markets before the slaughter exercise were positive of
H5N1.

     He pointed out that according to scientists, infected
chickens are amplifying host and will develop disease and
die.  But there is little risk of infected ducks dying of
this infection since they are only intermittent carriers.

     "In view of the differences between chickens and
ducks to this virus, the Government Task Force on H5N1 has
discussed the issue and drawn a preliminary conclusion
that no killing of ducks at local farms is necessary at
this stage," he said.

     "To protect public health, the Government is
considering a number of options to ensure that live
chickens and ducks are handled separately at all levels.

     "Our preliminary view is that live chickens should be
allowed to reach retail outlets for slaughtering on
purchase, but live ducks should not.  We are exploring a
number of options on how to handle ducks to achieve an
effective segregation from chickens."

     In addition, Mr Suen said in the interest of public
health and food hygiene, the Government was actively
discussing with its Guangdong counterpart the setting up
of a stringent quarantine system so that live chickens
could be imported again as soon as possible.

     Members of the public are reminded to keep vigilance
on maintaining good personal hygiene.

     Avian flu is mainly transmitted from infected birds
to humans. To prevent avian flu, the public should:

     *  Avoid contact with sick poultry

     *  Wash hands with soap immediately after handling
poultry

     *  Poultry should be cooked thoroughly before
consumption

     *  Chopping boards used for handling raw poultry must
be cleaned thoroughly before re-use.

End


5.  Update on avian flu
    *******************

     The Department of Health (DH) today (Wednesday)
confirmed one more case of influenza A (H5N1).  However,
it stressed that the hospital admission date of the case
was December 28, 1997.

     A department spokesman said the new case involved a
34-year-old female who was admitted to Queen Elizabeth
before the chicken slaughter exercise.

     She died of pneumonia on January 11, 1998.  It was
noted that she had other underlying illnesses.  Laboratory
test showed she was positive for H5N1.

     This brings the total number of cases to 18 confirmed
and one suspected cases.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

End


6.  Chief Secretary continues hectic programme in Los Angeles
    *********************************************************

     The Chief Secretary for Administration, Mrs Anson
Chan, continued her hectic programme today (January 13, US
time) by calling on the Los Angeles City Mayor Richard
Riordan at his official residence in the morning.

     This was followed by a meeting with a group of think
tank comprising presidents and chief executives of public
policy institutes as well as distinguished academics.

     At a luncheon jointly organized by the Hong Kong
Trade Development Council, Hong Kong Economic and Trade
Office and chaired by the Los Angeles World Affairs
Council, Mrs Chan answered the audience questions on Hong
Kong low tax system, the Asian financial crisis, freedom
of the press, housing for the middle class, competition
posed by Shanghai and the role of the Commissioner Ma
Yuzhen.

     Mrs Chan later attended a Tourism Forum where she
heard views from 50 prominent executives from Hong Kong
and the United States on issues shaping the vision of
future tourism in Hong Kong as well as how Hong Kong can
strive to maintain her identity as a tourist attraction.

     The evening highlighted a Gala Dinner hosted by the
Hong Kong Economic and Trade Office in San Francisco in
honor of Mrs Chan.  The night featured a performance by
the Hong Kong Ballet, "The Emperor and the Nightingale"
showcasing the cultural achievements of Hong Kong.

     The day also featured two roundtable sessions on
Trade and Finance organized by the Hong Kong Trade
Development Council during which the Secretary for Trade
and Industry, Miss Denise Yue, participated.

End


7.  HK dollar will not be delinked: CS
    **********************************

     The Hong Kong dollar will not be delinked, the Chief
Secretary for Administration, Mrs Anson Chan, gave this
assurance at the Business Luncheon Hong Kong*USA '98
jointly organised by the Hong Kong Trade Development
Council and Hong Kong Economic and Trade Office, and
chaired by the Los Angeles World Affairs Council in Los
Angeles today (Tuesday, January 13, US time).

     De-linking, she said, would damage Hong Kong, and do
further damage to the regional economy.

     "It has been the stability of Hong Kong's currency
since 1983, coupled with our greatly improved market
regulation and supervision, that has enabled us to develop
into one of the world's leading financial centres.

     "The stability of our currency against the dollar
protects our businesses and financiers from exchange rate
risk on those transactions," she said.

     While noting that the higher interest rates that were
needed to fend off attacks on the currency did have an
adverse impact on the stock and property markets, she said
it enabled the real economy to adjust through lower
property prices and rental levels.

     "This is putting home ownership back within reach of
the people and is restoring competitiveness in our
business costs," she added.

     Mrs Chan also noted that the Hong Kong economy had
continued to perform well while the territory was not
immune from the economic meltdown in the region.

     She said: "In the first six months of the year, GDP
grew by 6.3 per cent in real terms.  It slowed in the
third quarter to an estimated five per cent.  But despite
this decline and the obvious impact of the currency and
market turmoil of the past few months, we are sticking to
our original budget forecast for real economic growth of
5.5 per cent for the year as a whole.

     "Our optimism in Hong Kong's future is based not on
blind faith, but on a reasonable assessment of our
opportunities and the trust we have in our free market
system: trust that is ground in long experience.

     "And our optimism is shared by others."

     The US Heritage Foundation Index of Economic Freedom
for 1998 found Hong Kong, for the fourth consecutive year,
to be the freest economy in the world.  And the American
Chamber of Commerce in Hong Kong - one of the city's top
business groupings - has given the thumbs up for the SAR's
medium-term outlook.

     Mrs Chan said the attributes that have put Hong Kong
at the top of the East Asian region remain: geographical
location, on China's doorstep and midway between Tokyo and
Singapore; hard-working, flexible and well educated work-
force combined with enterprising and resourceful
entrepreneurs; simple and low tax system; transport and
communications infrastructure; accessible and predictable
legal and judicial system and Hong Kong's resilience and
"can do" attitude.

     "And we are continually improving on those
attributes," she said.

     A new state-of-the-art airport will open on July 6
while expansion of Hong Kong's container port, already the
world's busiest, is under way.

     To maintain Hong Kong's competitive edge, over 700
additional native-speaking English teachers will be
provided in secondary schools from this year as part of
the programme to ensure graduates have an even better
command of both the English and Chinese languages.

     Turning to the elections for the first Special
Administrative Region Legislative Council, Mrs Chan said
the structure of the new council would be the same as that
of the 1995 legislature - 20 directly elected members from
geographical constituencies; 30 indirectly elected from
functional constituencies; and 10 from an Election
Committee.

     "The Basic Law sets out a timetable for electoral
development in Hong Kong that will see the number of
directly elected seats steadily increased to 50 per cent
of the total by 2001.

     "After that, it will be up to us to decide for
ourselves how to take the electoral development forward to
full universal suffrage," she said.

End


8.  Speech by CS in Los Angeles
    ***************************

     Following is the speech by the Chief Secretary for
Administration, Mrs Anson Chan, at the Business Luncheon -
Hong Kong*USA '98, Los Angeles, today (Tuesday, January
13, US time):

Thank you for those kind remarks.

     I'm delighted to be back in the States, particularly
here in California.  And at a time which coincides with
the 150th anniversary of the event that started the
California gold rush in 1848.  While the gold rush ended a
few years later, it could be argued that the sentiment
expressed by the wave of migrants who descended on
California, continues today.  The lure of the United
States has not lost its lustre for people seeking fortune
and fame.

     While I certainly don't count myself as a gold-
digger, with my frequent visits in the past few years, I'm
beginning to feel this is my second home.  And what nicer
place could one have - a vibrant, dynamic centre that in
some ways reminds me of Hong Kong.

     However, I'm sure it would come as no surprise to
learn that a few matters in Hong Kong have prevented me
from visiting this great city of Los Angeles during the
past 18 months or so.  But, we're making up for that lapse
by launching the first-ever overseas promotion - under our
new name - in the 'City of Angels'.  I think this
demonstrates the importance we place on our close ties
with the United States, and California in particular.  Not
only is it the state where many Hong Kong people have
settled, but "LA" is one of our major trading partners and
our Pacific gateway to the United States.

     To give you some idea of the extent of our two-way
trade dealings, the US as a whole is our 2nd largest
trading partner, 2nd largest market, and our 4th largest
source of imports.  In the first nine months of 1997, the
value of trade between Hong Kong and the US totalled
US$41.5 billion - that's 14* per cent of our overall trade
and an increase of almost 4* per cent over the same period
in 1996.  And to break that down still further, Hong Kong
is California's 9th largest export market.  In 1996, your
exports to us were valued at over US$3.6 billion; and in
the first quarter of 1997 they were worth just under US$1
billion a rise of some 20 per cent on the first quarter of
1996.

     Having got those statistics off my chest, so to
speak, I wish to turn to the main theme of my luncheon
address -- the first six months of Hong Kong as a Special
Administrative Region of China -- a milestone reached just
a fortnight ago, on January the 1st.  A milestone that did
not attract the kind of attention the world's media gave
to the six month lead up to the Handover back at the start
of 1997.  It hasn't attracted attention because the
transition has proved to be not a headline- grabbing
discontinuity, but a heartening continuity.

     So seamless has the transition been, that to many
people in Hong Kong and for those coming back to visit,
there simply hasn't been any tangible change to the
lifestyle, or in the way in which Hong Kong operates in
its new role as a Special Administrative Region.

     What is new then?  The only visible difference is the
flag and having a Chief Executive, not a Governor, heading
the administration.  What has changed for me?  I'm still
the Chief Secretary, and with only one exception, the
senior policy secretaries are the same as those working
with the former Governor.  My duties and my daily routine
remain the same.  I chair the same government and business
committee meetings, attend the weekly Executive Council
meetings chaired by the Chief Executive.  Then there's the
usual pressure of day-to-day issues that any principal
government official has to deal with.

     I think the first six months could be summarised this
way -- The key ingredients of our success story remain
firmly rooted in Hong Kong.  The rule of law continues to
prevail and is being upheld.  We have an independent
judiciary and our own Court of Final Appeal.  We continue
to enjoy the freedoms and rights guaranteed by the Sino-
British Joint Declaration and the Basic Law, our mini-
constitution.  Political debates remain lively,
demonstrations continue to be a natural part of everyday
life; and if we as a government don't perform to
expectations, then we certainly hear or read about it
through the media, which remains as free and robust today
as it did before June 30.  Perhaps even more so.

     The Civil Service remains apolitical, clean, and
efficient.  The Hong Kong Special Administrative Region
Government runs its own affairs, and maintains a level
playing field for businesses to compete without any
interference from Beijing.  Co-operation with our global
and regional partners continues to develop and strengthen,
as can be seen by the launch of our HK*USA '98 promotion,
our active participation in the World Trade Organisation,
in our contribution to the rescue package for the Thai
baht, in the APEC Economic Leaders Meeting in Vancouver
two months ago, and in the Asian Finance Ministers Meeting
in Kuala Lumpur last month.

     One very welcome development has come with regard to
human rights.  Many, both inside and outside Hong Kong,
were concerned about the protection of these rights in the
long term.  I am very pleased that although China is not a
signatory to the human rights covenants itself, the
Central Government has agreed that reports on human rights
on Hong Kong will continue to be submitted to the
monitoring bodies.  Through this regular review and
monitoring, we can give assurance that our well developed
systems for upholding human rights are being maintained in
the years ahead.

     As you can see, it really is "business as usual" in
Hong Kong, a city that means business.  But to underscore
our high degree of autonomy as a Special Administrative
Region of China, I would like to expand a little on the
way in which we have been able to handle the financial
turmoil sweeping Asia.

     Any lingering doubts people might have had over
China's commitment to allow Hong Kong to look after its
own affairs, apart from defence and foreign relations,
would have been dispelled by the events of the past few
months.  China's leaders pledged full support to Hong
Kong, but only if we asked for it.  They demonstrated
their faith and trust in our ability to cope.

     China has shown understanding that maintaining the
position of the Hong Kong Dollar is the expression - in
economic terms - of the substance of 'One Country Two
Systems'.  Equally, there is an understanding that for the
Hong Kong Dollar to keep its position, it is vital that it
continues to be supported not by political intervention,
but by the sound fiscal and economic policies that are
practised in Hong Kong.

     You might have read or heard different analysts
calling for an end to the link between the Hong Kong and
US dollars.  It is a debate that, almost like clockwork,
is dusted off whenever there is the hint of financial
problems or an attack on our currency.  But, I can give
you this assurance - the Hong Kong Dollar will not be de-
linked.

     De-linking would damage Hong Kong, and do further
damage to the regional economy.  It has been the stability
of Hong Kong's currency since 1983, coupled with our
greatly improved market regulation and supervision, that
has enabled us to develop into one of the world's leading
financial centres.  Financial services have increased
their contribution to our GDP by over 500% in the last
decade and we are now the world's 4th largest banking
centre and 6th largest securities centre.  Most of the
cross border loans and deals in the world are made in US
dollars.  The stability of our currency against the dollar
protects our businesses and financiers from exchange rate
risk on those transactions.

     As for our exporters, the idea that they can gain
sustained advantage from competitive devaluation is mis-
judged.  We first must import all our materials before we
can export.  Devalue and we will soon import inflation
that will wipe out the hope of gain from lower export
prices.  Any devaluation would have serious consequences
for our stock, financial and property markets.  It would
do lasting damage to our economic prospects.

     There is no question of Hong Kong's ability to
maintain the value of its currency.  The currency board
system under which the link operates, is an automatic
market mechanism, not a construct of political will.  It
has imposed sound financial discipline on the government.
We run budget surpluses, not deficits, and have reserves
that are sufficient not just to back up our currency seven
times over, but allow us to maintain substantial levels of
investment in infrastructure, education and other
programmes that will strengthen our economy in the years
ahead.  We have sound regulation of our banks, including
high capital adequacy ratios which place them in a very
strong position to cope with any difficulties caused by
current problems in the region and in Hong Kong.  Above
all, we have credibility: credibility that comes from our
record of prudent fiscal policies, sound financial
regulation, open and transparent systems, a clean and
efficient administration and from the underlying strength
of our economy.  These are the major differences between
the way Hong Kong operates and those economies in the
Asian region that are feeling the full impact of the
current financial turmoil.

     Of course this is an unsettling period for all.  The
higher interest rates that are needed to fend off attacks
on the currency do have an adverse impact on the stock and
property markets, and affect those doing business or have
a mortgage to repay.  But it enables the real economy to
adjust through lower property prices and rental levels.
This is putting home ownership back within reach of the
people and is restoring competitiveness in our business
costs.  The nature of these market-driven adjustments to
the Hong Kong economy bring short-term trauma, but not
long-term chronic illness.  If you look around elsewhere
in the region, I think you must agree that Hong Kong is in
better shape than most.

     In short, the recent volatility in the market has not
changed our policy of maintaining a free, open and
transparent economy with sound regulatory controls,
underpinned by the rule of law.  And it has not shifted
our determination to further enhance Hong Kong's role as a
leading international financial centre.

     It is said that imitation is the sincerest form of
flattery, and in this context it's interesting to note
that Singapore, which is so often held up as a great rival
of ours, is looking at the Hong Kong model as a way of
deregulating its domestic financial industry in an effort
to position itself as a top financial centre in the Asian
time zone.  Its banking sector has also been urged to
follow Hong Kong's example, which, in a recent report was
singled out for its impressive record in banking
disclosure standards.  I wish them well, but I can assure
you that Hong Kong will not be standing still.

     While we are not immune from the economic meltdown in
the region, our economy has continued to perform well.  In
the first six months of 1997, Gross Domestic Product grew
by 6.3% in real terms.  It slowed in the third quarter to
an estimated 5%.  But despite this decline and the obvious
impact of the currency and market turmoil of the past few
months, we are sticking to our original budget forecast
for real economic growth of 5.5% for 1997 as a whole.

     So, even with the domino effect on the economies a
number of East Asian countries, Hong Kong has been able to
withstand most of the pressures.  We should be well
positioned to ride out the storm, emerging at the other
end faster than most because of our free markets and open
economy.

     Our optimism in Hong Kong's future is based not on
blind faith, but on a reasonable assessment of our
opportunities and the trust we have in our free market
system: trust that is grounded in long experience.  And
our reasoned optimism is shared by others.  Last month we
received two rather impressive report cards from
influential third parties.  The US Heritage Foundation
Index of Economic Freedom for 1998 found Hong Kong, for
the fourth consecutive year, to be the freest economy in
the world.  And the American Chamber of Commerce in Hong
Kong - AmCham - one of the city's top business groupings,
has given the thumbs up for the SAR's medium term outlook.

     The Heritage Foundation Index gave Hong Kong top
scores in all 10 key areas under assessment - trade
policy, tax policy, government intervention, monetary
policy, foreign investment, banking (we were described as
having one of the world's most stable banking
environments), wages and price controls, property rights,
regulation, and the size of the black market.  The study
found that there is, and I quote: "little evidence that
becoming part of China will alter Hong Kong's economic
structure significantly.  There continues to be little
government interference in the market place; taxes remain
low and predictable; increases in government spending are
linked closely with economic growth; foreign trade still
is free; and regulations, in addition to being
transparent, continue to be applied both uniformly and
consistently."  End of quote.

     The results of AmCham's annual business confidence
survey are just as encouraging.  They reflect a positive
medium term outlook for Hong Kong's business environment
even against the backdrop of recent economic turbulence in
the region.  The summary results noted "the high level of
confidence is directly related to the smooth transition
and political stability, sound economic fundamentals, and
an overall improvement in Sino-American relations".

     Over 96% of the survey respondents expressed a "very
favourable" or "favourable" view of Hong Kong's business
environment in the next five years.  The maintenance of
the rule of law and free flow of information ranked as the
most important factors in assessing the SAR's future as a
centre for international business and finance.

     The latest figures we have, show that, total American
investment in Hong Kong was US$16 billion.  Making us the
second largest destination for US investment in Asia after
Japan.  And there are some 1,200 American companies
operating out of Hong Kong: more than 400 of them with
regional headquarters or offices there.

     Despite the present turmoil, Hong Kong's position as
the key international financial, trading and business
centre of East Asia has been strengthened.  Our political
stability, sound economy and dependable currency, which is
freely convertible, have provided a measure of certainty
in a region now beset by uncertainties.  And this is
bolstered by the fact that we have the mainland of China
as our economic hinterland -- an economy that grew by
around nine per cent in real terms in 1997 and with little
spill-over effect from the regional crisis.  Growth in the
Mainland is expected to continue at around 8% per annum up
to 2000.

     The attributes that have put us at the top of the
East Asian region remain:

     *  our geographical location, on China's doorstep and
midway between Tokyo and Singapore;

     *  our hard-working, flexible and well-educated work-
force, combined with our enterprising and resourceful
entrepreneurs;

     *  our simple and low tax system, where no individual
pays more than 15% on their salary and no company more
than 16.5% on its profits;

     *  our transport and communications infrastructure,
which makes it easy to travel to and communicate with
almost anywhere in the world;

     *  our accessible and predictable legal and judicial
system, which ensures that the rule of law is upheld and
that no one is above the law; and

     *  Hong Kong's resilience and "can do" attitude,
which has enabled us to overcome so many apparently
crippling political and economic problems in the past.

     And we are continually improving on those attributes.
We have just announced our new state-of-the-art airport
will open on July 6 this year to carry us through well
into the new millennium, perhaps continuing as the world's
busiest for freight and 3rd busiest for international
passengers.  Further expansion of our container port,
already the world's busiest, is under way.  And we have
just announced major expansions for our mass transit
railway and conventional rail systems.

     As one of the world's great cosmopolitan cities - a
meeting place for East and West and where English remains
the language of business - we are also upgrading our
teaching methods to ensure our graduates have an even
better command of both English and Chinese.  This is
essential if we are to maintain our competitive edge in
the world.  As part of this programme, we will be
providing more than 700 additional native-speaking English
teachers in secondary schools from this year.

     But there is no denying we have had difficulties; and
not simply on the economic front, or for that matter with
the recent outbreak of "bird" 'flu which has been the
subject of intense medical research and study from experts
in Hong Kong and the world.  Political issues have also
tested the Administration.

     Specifically, the legality of the Provisional
Legislative Council and other decisions of the
Administration has been subject to legal challenges.
These challenges have all been dealt with by Hong Kong's
courts, under the rule of law, using the same legal
precedents and processes that have been long-established
in Hong Kong and with their roots in the English common
law system.

     On the legislature front, our overriding objective
now is to act as quickly as possible to put in place
arrangements for elections for the first SAR Legislative
Council, in accordance with the Basic Law and then to
elect one that is genuinely representative of the whole
spectrum of public opinion, through a voting system that
is fair, open and acceptable to the people of Hong Kong.
These elections will be held on May 24 this year.  The
structure of the new Legco will be the same as that of the
1995 legislature - 20 directly elected members from
geographical constituencies; 30 indirectly elected from
functional constituencies; and 10 from an Election
Committee.

     The indirect elections in functional constituencies
are pretty well unique to Hong Kong.  They have drawn
criticism from the time they were introduced under the
British Administration in 1985.  They remain, as then, a
transitional arrangement.  The Basic Law sets out a
timetable for electoral development in Hong Kong that will
see the number of directly elected seats steadily
increased to 50% of the total by 2007.  After that, it
will be up to us to decide for ourselves how to take the
electoral development forward to full universal suffrage.

     I know the question of human rights around the world
will continue to be a central pillar of United States
foreign policy.  And in our own way, we are ensuring that
it continues to be nurtured and strengthened in Hong Kong.
As I mentioned earlier, we will be writing reports on the
implementation of two important UN covenants on civil and
political rights and on economic, social and cultural
rights.  We will be seeking the views of Hong Kong people
in the preparation of these reports, and they will then be
transmitted through China's Permanent Representative in
the United Nations, to the relevant treaty monitoring
bodies.

     There is one other matter that needs to be clarified.
Time and again we are asked by people from overseas what
is the effect of so many soldiers from the People's
Liberation Army stationed in Hong Kong.  Such a situation
couldn't be further from reality.

     Less than two months ago, Hong Kong's respected
English language daily, the South China Morning Post,
commenting editorially on the change of garrison personnel
- something which occurred without fanfare - said the
"ultra low profile adopted by the PLA since its arrival
has exceeded all expectations".  In fact, the paper went
on to say that it would be in everyone's interest if the
soldiers were allowed to see more of Hong Kong, provided
they remained a background presence.

     For most people, the only visible presence of the PLA
are the two guards standing to attention at the entrance
to the garrison's headquarters - the Prince of Wales
Building (yes the name hasn't changed yet) on the Central
waterfront.

     The Hong Kong Police Force continues its most
effective role in maintaining law and order in the
streets, as well as ensuring the integrity of our border
with the mainland.  This is also a fact that is sometimes
overlooked - the border remains intact.  Just as it was
before the Handover.  The same immigration and customs
laws apply.  There hasn't been, and there won't be, any
sudden influx of people from the mainland coming to Hong
Kong.

     As we saw at the Handover, there is a great deal of
international goodwill and support for Hong Kong and China
as we undertake our historic task - One Country Two
Systems.  I am conscious of the need to maintain the
momentum of support from our friends and to keep them
fully abreast of developments in the SAR.  I know we have
many friends here in the United States and this is the
principal reason we have chosen the US for our first post
Handover promotion.

     I believe the world wants Hong Kong to succeed,
because a successful Hong Kong is good for the world.  We
are an important player in the global village, and I can
assure you that we will continue to play a vigorous and
constructive role in the myriad of international
organisations of which we are members in our own right:
that's what a high degree of autonomy means in practice.

     With the Chief Executive's leadership, the firm
support of the central government, the commitment and
growing confidence of the Hong Kong community, the
goodwill of our friends in the international community and
the support of our trading partners, I am confident that
Hong Kong people will run Hong Kong wisely and well.  We
will maintain our cosmopolitan international character and
outlook, our free market philosophies, the rule of law,
respect for individual rights and democratic institutions.
In short, adherence to the Basic Law.

     We are a very proud community. Proud to be Chinese
and once again a part of China, albeit with our distinct
system.  A good Sino-US relationship is crucially
important for the entire world.  We welcome your
Administration's decision to forge a constructive
relationship with China and I am sure that Hong Kong's
well being will continue to be an important aspect of that
relationship.

     Thank you.

End


9.  CE meets US Deputy Treasury Secretary
    *************************************

     The Chief Executive, Mr Tung Chee Hwa, met the
visiting US Deputy Treasury Secretary, Mr Lawrence
Summers, this (Wednesday) evening and discussed the
general economic situation in Hong Kong and the region in
the light of the Asian financial turmoil.

     While noting recent fluctuations on the local stock
market, Mr Tung stressed that our economy was backed by
strong fundamentals and he had full confidence in our
market recovery.

     "The Hong Kong SAR Government has the determination
and ability to maintain the linked exchange rate system,
and considers it necessary to do so," Mr Tung said.

     Mr Tung and Mr Summers noted latest financial
developments in South East Asia and exchanged views on
ways to improve the situation and the role of the US in
the current circumstances.

     "We fully support the programmes put forward by the
IMF for restructuring relevant Asian economies and
consider that this is the best way forward," Mr Tung said.

End


10. Water discharged from Shenzhen Reservoir
    ****************************************

     Hong Kong has been informed by the Shenzhen Authority
that water would be discharged from the Shenzhen reservoir
from about 11 pm today (Wednesday).

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

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

End


11. Water discharge from Shenzhen: Hong Kong still on alert
    *******************************************************

     Hong Kong is still on the alert for a possible
discharge of water from the Shenzhen Reservoir.

     "At 10.45 pm, we have been advised by the Shenzhen
authorities that due to changes in circumstances, the
discharge of water from the Shenzhen Reservoir will not
start at 11 pm today(Wednesday) as previously announced.
However, the possibility of discharging water from the
reservoir remains," a Government spokesman said.

End


12. Introduction of Compulsory Sale for Redevelopment Bill
    ******************************************************

     To prevent deterioration of the urban environment and
optimise the use of land resources, the Government will
introduce a Land (Compulsory Sale for Redevelopment) Bill
to facilitate site assembly in order to encourage and
expedite private redevelopment in derelict urban areas.

     The Bill, which was approved by the Chief Executive
in Council, seeks to tackle the problem of property
acquisition by enabling the majority owner, an owner or
owners holding not less than 90% of the undivided shares
in a lot, to make an application to the Lands Tribunal for
an order for sale of the whole lot.

     By providing a rigorous valuation and auction
mechanism and a fair opportunity for the affected parties
to raise objections, the Bill will ensure fair and proper
compensation for the minority owners.

     A Government spokesman today (Wednesday) said that
the minimum acquisition level of 90% was set with
reference to a similar threshold in the Companies
Ordinance providing for the buyout of minority shares in a
company take-over.

     He said that the Chief Executive in Council might, by
notice in the Gazette, specify a percentage other than 90%
in respect of a class of lots but such a percentage should
not be less than 80%.

     "The majority owner is required to assess the market
values of the properties concerned, on a vacant possession
and existing use basis, before applying for an order for
sale. He must also serve a copy of the application,
together with the valuation report, on each minority owner
of the lot.

     "Where there is any dispute lodged by the minority
owner on the values so assessed, the Lands Tribunal will
hear and determine the dispute," the spokesman added.

     "In making an order for sale after considering all
objections, the Lands Tribunal must be satisfied that
disputes as to the values of the properties have been
settled; the sale is to enable redevelopment;
redevelopment of the lot is justified due to the age or
state of repair of the existing development or on any
other ground specified in regulations; and the majority
owner has taken all reasonable steps to acquire all the
undivided shares in the lot.  A notice of the judgement
will then be served on each owner," he said.

     The entirety of undivided shares in the lot will be
sold by auction to achieve the best possible price.  This
arrangement will enable the minority owners to receive a
share in the potential redevelopment value of their
properties, subject to any restrictions in the lease.

     To counteract possible collusion among prospective
bidders, a reserve price to be approved by the Tribunal
will be set.  Any person, including the majority and
minority owner, can bid for the lot, and the highest
bidder will be the successful purchaser.

     The sale proceeds after deducting expenses will be
paid to trustees appointed by the Tribunal, who will apply
the proceeds in payment to the owners on a pro rata basis
in accordance with the values of their respective
properties irrespective of the number of undivided shares
they hold.

     The purchaser of the lot is protected against the
claims of any prior owner, and is vested with a statutory
power to terminate any lease of premises on the lot
entered into before he became the owner of the lot.  The
Tribunal can direct the majority owner and minority owners
to pay compensation to their respective tenants by
reference to the provisions of the Landlord and Tenant
(Consolidation) Ordinance.  However, it may exercise a
discretion to direct the purchaser to pay compensation to
the tenants.

     To ensure redevelopment, the Tribunal is empowered to
impose conditions on the successful purchaser to complete
the project within six years or shorter period.  The
Government can re-enter the lot if the purchaser fails to
comply.

     The spokesman explained that the proposed Bill
stemmed from a Policy Statement on "Urban Renewal in Hong
Kong" issued in June 1996, following a public consultation
in 1995, which set out a comprehensive package of short
and long term measures to deal with the problems of urban
renewal.

     "Among various problems in urban renewal is the
difficulty of property acquisition, as individual owners
may refuse to sell for personal reasons or demand
unreasonably high prices. Defective titles, untraceable
owners or owners who have died intestate also add to the
problem.

     "A private redevelopment may have to be abandoned or
may take a very long time to complete because of such
difficulties.

     "The problem is worsening as more and more medium to
high-rise buildings are now ripe for redevelopment.  The
buildings may deteriorate quickly because of a lack of
maintenance.

     "Another problem is that some developers may resort
to unscrupulous tactics to force the remaining owners to
sell or move out of their properties.

     "It is essential to address these problems as quickly
as possible," he said.

     The Bill will be gazetted this Friday (January 16)
and is expected to be tabled in the Provisional
Legislative Council on January 21.

End


13. Voter registration exercise to close on Friday
    **********************************************

     Members of the public will have two more days to sign
up as an elector for the Legislative Council elections on
May 24, a spokesman for the Registration and Electoral
Office (REO) said today (Wednesday).

     Completed registration forms should reach the office
on the 10th floor, Guardian House, 32 Oi Kwan Road, Wan
Chai by midnight this Friday (January 16).  Late
applications will not be processed.

     The REO will extend its opening hours to 12.00
midnight on Friday to receive last-minute registration
forms.

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

     The spokesman reminded individuals and bodies who
were eligible to be registered as an elector for a
functional constituency and a voter for an Election
Committee subsector to beat the Friday deadline.

     "A corporate elector must appoint an authorised
representative by Friday in order to cast a vote on its
behalf in the elections," he said.

     Up to yesterday (January 13), more than 500,000 voter
registration forms for geographical constituencies have
been received.

     The REO's initial assessment is that about half of
them are new electors.  The remaining forms are mainly
reports of change of residential address.

     About 2.53 million people have already registered as
electors for geographical constituencies before a voter
registration exercise started on November 5 last year.

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

     The REO has also sent letters to 56,000 eligible
individuals and 46,000 eligible bodies who have not yet
registered inviting them to sign up.

     About 11,700 new applications have been received from
6,000 individuals and 5,700 bodies up to January 12.
About 5,600 of these corporate electors have appointed
their authorised representatives.  Staff of the REO are
contacting the other 100 to finalise the appointment of
their authorised representatives.

     The spokesman pointed out that response from eligible
bodies in five new functional constituencies had remained
unsatisfactory despite two rounds of appeal letters and
telephone calls by the REO.

     Only about 2,600 applications have been received from
bodies of these constituencies as at January 12.

     "To make it more convenient for them to check their
status, the names of eligible bodies in these five
functional constituencies have been put on the Internet,"
he said.

     The five functional constituencies are Sports,
Performing Arts, Culture and Publication; Import and
Export; Textiles and Garment; Wholesale and Retail, and
Information Technology.  The website is
"http://www.info.gov.hk/reo/index.htm".

     The spokesman reminded corporate electors in the old
functional constituencies to appoint their authorised
representatives before Friday.  "Otherwise, no one will be
able to cast the vote on their behalf in the elections,"
he explained.

     He added that many of the corporate electors in the
old functional constituencies such as the Industrial
(Second) and Commercial (Second), and two EC subsectors -
the Employers' Federation of Hong Kong and the Hong Kong
Chinese Enterprises Association - had not yet appointed
their authorised representatives.

     The spokesman said corporate electors could replace
their authorised representatives by completing a simple
form after the close of registration until up to 14 days
before the elections.

     However, they have to appoint their authorised
representatives and forward their completed forms to the
REO before Friday in the first place, he said.

     Other concerned parties who wish to check their
eligibility for registration in functional constituencies
can call the REO hotline 2891 1001 or make enquiries by
fax to 2891 1180.

End


14. Aid for earthquake victims
    **************************

     The Disaster Relief Fund Advisory Committee has
approved a grant of $6.24 million to Hong Kong Red Cross
for their emergency relief programme to earthquake victims
in Zhangjiakou in Hebei, Mainland.

     The Committee is deeply concerned about the hardship
suffered by the earthquake victims and hopes that the
grant can help to provide some immediate relief.

     Two other applications for funds have been received
from the Jian Hua Foundation and the World Vision.  These
applications will be processed as quickly as possible.

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

End


15. MOU on environmental collaboration between HK and Canada
    ********************************************************

     Hong Kong and Canada today (Wednesday) signed a new
agreement for the two parties to further enhance their
collaboration in the field of environmental affairs since
the last co-operation programme established in 1992.

     A Memorandum of Understanding (MOU) was signed this
morning by the Secretary for Planning, Environment and
Lands, Mr Bowen Leung, representing the Hong Kong Special
Administrative Region and the Minister for the
Environment, Mrs Christine Stewart, representing the
Canadian Government.

     At the signing ceremony, Mr Leung said that the two
parties have identified a number of areas as priority
issues for further co-operation which include sustainable
development, pollution prevention, waste reduction, clean
technology and waste-to-energy incineration.

     "In these and many other areas, we hope to improve
our understanding of the considerations made by Canada,
the options examined and the solutions selected," Mr Leung
said, adding that Hong Kong would hope to offer its
Canadian counterparts something useful in return.

     "This MOU will cover a period of five years which
coincidentally, will embody the preparation of our new
White Paper on the Environment that we aim to publish in
the year 2000."

     "This will follow an Agenda 21 theme and we will feed
Canada's experience into the process," he said.

     Under the MOU, Hong Kong and Canada will provide each
other with information on environmental issues and on
significant environmental research, monitoring, socio-
economic impact, regulatory and policy elements of their
respective programmes.

     They can also involve the active participation of
other organisations including business and academic in the
activities conducted under the MOU.

     The Director of Environmental Protection, Mr Robert
Law; and the Regional Director General, Pacific and Yukon,
Department of Environment of Canada, Mr Art Martell, who
represent the co-ordinating offices responsible for the
management of the programme, attended the signing
ceremony.

     During the stay in Hong Kong, Mrs Stewart and her
delegation will visit a number of environmental
organisations and facilities including the Centre for
Environmental Technology as well as a helicopter tour of
the Stonecutters Island Sewage Treatment Works; Mai Po
Marshes and the new airport in Chek Lap Kok.

End


16. Time limit for objections to reclamation projects
    *************************************************

     The Government will gazette this Friday (January 16)
the Foreshore and Sea-bed (Reclamations) (Amendment) Bill
1998 which seeks to stipulate a general time limit of nine
months for dealing with objections in respect of a
proposed reclamation lodged under the Foreshore and Sea-
bed (Reclamations) Ordinance.

     A government spokesman said, "To dovetail with
Government's commitment to implementing the enhanced
housing development programme to cater for the needs of
the community, it is necessary to have a steady and
sufficient supply of land for various housing projects,
part of which will have to be formed by reclamation."

     "In addition, certain urgent infrastructure
improvement, in particular those related to transport,
will need to be constructed through reclamations," he
said.

     "We need to put in place the proposed legislative
amendments now so that any objections to proposed
reclamations will be dealt with more efficiently and
effectively.

     "If necessary, the time limit may be extended to
cater for special cases which require more processing
time," he said.

     At present, any person who considers that he has an
interest, right or easement in or over the foreshore and
sea-bed that is subject to a proposed reclamation may
object to the proposed reclamation under the Ordinance,
but there is no time limit for processing such objection.

     The Bill is planned to be introduced into the
Provisional Legislative Council on January 21, 1998.

End


17. Informal exchange on Code on Access to Information
    **************************************************

     The Secretary for Home Affairs, Mr David Lan, and
representatives of the Hong Kong Journalists Association
(HKJA) held an informal meeting today (Wednesday) which
saw a frank and useful exchange of views on the Code on
Access to Information.

     Mr Lan said the meeting was initiated by the Home
Affairs Bureau following media reports which indicated a
misunderstanding of an internal memo advising and
reminding Government agencies of the need to provide
expeditious response to requests for information from the
media and members of the public.

     "I am grateful to our friends from the Journalists
Association for affording me this opportunity to clarify
our position on this matter.  I assured them that there is
no question of any Government bureau or department not
adhering to the letter and spirit of the Code.

     "I reassured them that the underlying principle of
the Code is that information held by the Government will
be made available, either routinely or on request, unless
there are valid reasons related to public, private or
commercial interests to withhold the information.

     "I stressed that the Government would continue with
the existing practice of disseminating information in
response to all legitimate requests.  And we will be
equally forthcoming in dealing with requests from either
the media or any private individual," he said.

     The Code was extended to all the 91 Government
branches and departments on December 23, 1996.

     "From the onset, the primary objective of the Code is
to maintain an open Government, which clearly dovetails
with the freedom of the press.  I believe our record of
complying with the Code speaks for itself and testifies to
our sincerity," Mr Lan said.

     "Referring to the internal memo which had unwittingly
caused some misunderstanding among certain HKJA members,
Mr Lan said it was an internal document, the whole purpose
of which was to remind frontline officials of their duty
to respond as expeditiously as possible and of the
guidelines in dealing with requests for access to
information.  And I was pleased to give them a copy of the
memo itself," Mr Lan added.

End


18. No valid bids for Baguio Villa flats
    ************************************

     The Government Property Agency announced today
(Wednesday) that it has received no valid bids for the 79
Baguio Villa flats advertised for sale recently.

     The agency will review the method for disposing of
surplus government quarters and make a separate
announcement as soon as possible.

End


19. Applications for Industrial Support Fund 1998/99
    ************************************************

     A total of 167 applications for the Industrial
Support Fund (ISF) for the 1998/99 financial year have
been received at the closing date on December 31, 1997.

     Subject to the approval of the Provisional
Legislative Council, the provision for ISF in 1998/99
would be around $270 million.  Of this amount, some $115
million has been committed to on-going projects approved
in the previous three years.  This leaves about $155
million for new projects commencing in 1998/99.

     Most of the projects proposed will last two or three
years, and the total amount requested is $717.6 million.

     The bulk of applications came from tertiary
institutions, with 104 applications or 62.3 per cent of
the total, but many of them had private sector
participation or partnership.  The rest were from industry
support bodies, professional bodies, research institutes,
trade and industry organisations as well as private
companies.

     Broken down according to industrial sectors, the
applications fell into seven categories.  The General
category tops the list with 50 applications, followed by
the biotechnology category (45 applications), electronics
(23 applications), information technology (17
applications), plastics (8 applications), metals (13
applications), and textiles and clothing (11
applications).

     Announcing this today (Wednesday), the Assistant
Director-General of Industry, Ms Annie Choi, said she was
satisfied with the large number of applications received.
A series of meetings would be held by the industry
committees under the Industry and Technology Development
Council (ITDC) from January to March 1998 to consider the
applications, which would then be examined by a special
Projects Vetting Committee before submission to the ITDC
for approval.  The result of the vetting exercise would be
announced in May/June.

     On the funding criteria, she said: "The main
criterion adopted by the ITDC is whether the application
is relevant to one or more industrial sectors and whether
the deliverables of the proposed project would likely be
adopted by local manufacturers."

     She added also that priority would be given to
projects which have private sector participation or
contribution.

     Since the introduction of ISF in 1994, a total of 285
projects have been given funding support.  Of these, 106
have been completed and the rest are progressing
satisfactorily.  All funded projects are monitored closely
by the Industry Department and the committees of the ITDC.

End


20. CAL software on traditional Chinese character
    *********************************************

     Primary and secondary schools have been informed to
collect a multi-media CD-ROM on learning traditional
Chinese characters from next Monday (January 19).

     Produced by the Curriculum Development Institute of
the Education Department, the computer-assisted learning
software "From Simplified to Traditional Chinese
Characters" is to help new arrival children from the
Mainland (NAC) to master the most frequently used
traditional Chinese characters in Hong Kong in a target-
oriented, user-friendly and multi-media environment.

     It also provide teachers with a generator in
producing subsidiary materials for the monitoring of the
learning progress of the students.

     Schools are encouraged to make use of the CD-ROM,
either in class teaching or in students' self-learning
outside the school time-table.

     Though the target group of the learning software are
NAC, flexibility has been built in the design of the
learning package to enable Primary 1 to Secondary 3
students to use the software for learning traditional
Chinese characters.

     The software includes a database of traditional
Chinese characters consisting of basic information like
radical, stoke order, stroke number, common words
associated, Cantonese and Putonghua pronunciation;
animated demonstration of writing and development of
selected Chinese characters; learning paths of traditional
characters in context; handwriting and character
recognition exercises; introduction of frequently-used
local characters in Hong Kong; a worksheet generator for
teachers; and educ-tainment games to make learning
pleasurable and effective.

     Meanwhile, the Education Department will organise
three identical half-day briefing sessions on the learning
package for teachers in February.  Participants will have
a better understanding on the features and usage of the
learning software.

End


21. New footbridge helps pedestrians crossing Lung Poon Street
    **********************************************************

     Members of the public can make use of a newly-
constructed footbridge to cross Lung Poon Street starting
from 11 am on Friday (January 16).

     The footbridge connects the existing footbridge
across Fung Tak Road and the Diamond Hill MTR Station
through a private development.

     Pedestrian safety will be further enhanced as
pedestrians will be diverted from using the at-grade
crossing.

     Works on this project commenced in December 1996 at a
cost of $10.5 million.

End



PROVISIONAL LEGISLATIVE COUNCIL MEETING SUPPLEMENT


CONTENTS
========
1.  Motion Debate on Two-tier Social Security System
2.  International shipping centre
3.  Work safety in manholes promoted
4.  Cases of domestic violence
5.  Construction works of Sha Kok Mei Interim Housing project
6.  Police has no plans for further restructuring
7.  Findings of consultancy study on indoor air quality being examined
8.  Construction of village access roads
9.  Measures to improve Octopus to be explored
10. Citizens of Commonwealth countries working in Hong Kong
11. Construction of the Science Park, Phase I
12. Municipal Councils' principles on tobacco sponsorship
13. Measures to ease workload of Social Security Assistants
14. Arts & cultural activities to develop in a diversified manner
15. Dissemination of information on air quality
16. Mainlanders visiting HK on Two-way Exit Permit
17. Labour force participation rate
18. Measures under Livestock Waste Control Scheme explained
19. HK companies involved in legal systems of overseas jurisdictions



1.  Motion Debate on Two-tier Social Security System
    ************************************************

     Following is the speech by the Secretary for Health
and Welfare, Mrs Katherine Fok, in response to the motion
debate on "Two-tier Social Security System" in the
Provisional Legislative Council today (Wednesday):

Madam President,

     Caring and providing for the elderly is one of the
primary objectives of this Administration.  We are aware
that while the majority of the senior members of our
community are looked after by their families and friends,
there is a group of people, who have to rely on the
Government for assistance in meeting their day to day
needs.  For this group of elderly people, we have the
Comprehensive Social Security Assistance (CSSA) Scheme
which has as its aim the meeting of the basic and special
needs of the financially vulnerable and provides
assistance on a non-contributory basis.

     Under the existing arrangement, the basic payment to
a single elderly includes three different rates, depending
on the recipient's state of health.  An able-bodied
elderly receives $2,060 a month, a disabled elderly
receives $2,575 while $3,775 is payable to an elderly
receiving constant care and attendance.

     As Members are aware, in addition to the basic
payment, elderly CSSA recipients receive cash assistance
for various expenses such as rent and other household
expenses.  Furthermore, some recipients obtain additional
assistance to meet their health and personal care needs.
Taken together, our records indicate that, depending on
his/her state of health, a single elderly person presently
receives between $2,900 to $5,700 per month under the CSSA
Scheme.  Simply put, about 45% of our 100,000 single
elderly CSSA recipients are presently in receipt of
assistance in excess of $3,100 per month.  On top of this,
elderly CSSA recipients are entitled to medical services
completely free of charge at Government clinics and
Hospital Authority hospitals.

     As part of our effort to encourage the elderly to
continue to lead a healthy and socially active life after
their retirement, the Chief Executive announced in his
Policy Address the decision to increase the monthly basic
payment to elderly CSSA recipients by $380 a month as from
April 1998.

     With this increase, the monthly payment to our single
elderly CSSA recipients will, before adjusting for
inflation for 1998-99, be between $3,200 to $6,000 per
month, or a weighted average $3,700.  At these levels, we
believe they are appropriate in view of the objective of
the CSSA Scheme which seeks to provide a 'safety net' for
the financially vulnerable.

     Besides personal savings and family support, my
colleague, the Secretary for Education and Manpower, has
pointed out that a mandatory, privately managed
contributory fund scheme like the Mandatory Provident Fund
should be the mainstay of financial security in old age.
I hope that Members will approve the scheme for
implementation as soon as possible.

     Thank you, Madam President.

End


2.  International shipping centre
    *****************************

     Following is a question by the Hon Miriam Lau Kin-yee
and a reply by the Secretary for Economic Services,
Mr Stephen Ip, in the Provisional Legislative Council
today (Wednesday):

Question:

     The Chief Executive indicated in his Policy Address
that Hong Kong has the status of an international shipping
centre.  In this connection, will the Government inform
this Council:

     (a)  of the specific data indicating that Hong Kong
has such a status;

     (b)  of Hong Kong's superiority and deficiency in
comparison with the shipping centres in other countries
and regions; and

     (c)  whether there are any plans to consolidate or
strengthen Hong Kong's position as an international
shipping centre; if so, what the details are?

Reply:

Madam President,

     (a)  Apart from being the busiest container port in
the world for six successive years, Hong Kong also sees a
large number of ocean-going and river trade vessels
entering and leaving every year with the number of voyages
totalling 500,000 annually.  The shipowners and shipping
companies of Hong Kong have in their possession or control
ocean-going vessels (including those registered overseas)
with dead weight tonnes (DWT) up to 55 million tonnes,
accounting for 8% of the total tonnage in the world.  Over
1,000 shipping and related companies operate in Hong Kong.
Moreover, our independent shipping register, though having
a short history of seven years, has already gained
recognition from the shipping industry as being one of the
best internationally and has a total fleet of 488 vessels
at present.  Such information, particularly the data on
the tonnage of the vessels controlled by our shipowners
and shipping companies, indicates clearly Hong Kong's
position as an international shipping centre, and an
important centre for container cargoes, ship-owning, ship-
financing and ship-management.

     (b)  Compared with other shipping centres, especially
in relation to London and Singapore, the most important
advantage of Hong Kong is that we have many experienced
shipowners who control a huge international fleet based in
Hong Kong.  They have not only made significant
contribution to the development of Hong Kong as an
international shipping centre, but also provided
favourable conditions for future development.  Moreover,
being an international shipping centre, Hong Kong has a
simple tax regime with low tax rates and provides
excellent services in financing, insurance, communication,
accounting, legal and other related fields.  Our busy
container terminals, well-equipped port and large cargo
bases also attract many shipping companies to come to Hong
Kong.  Hong Kong's disadvantage as an international
shipping centre  lies firstly in the operating costs: i.e.
salaries and rentals are comparatively high.  Secondly,
for historical reasons, many professional services like
classification societies (companies involved in vessel
survey and valuation), maritime lawyers, average
adjusters, maritime insurance companies and shipowners
insurance indemnity associations (mutual insurance
agreement among shipowners) have their headquarters set up
in London.  Other places find it difficult to compete with
them.

     (c)  To strengthen our position as an international
shipping centre, a series of measures are being
implemented:

     Firstly, an exercise is underway to review and
simplify our shipping registration fees and procedures so
as to reduce the costs to shipowners and attract more
vessels to register here.

     Secondly, we are actively studying the proposal of
the Hong Kong Shipowners Association, which seeks to
improve our freight tax arrangements and alleviate local
shipping companies of their tax burden overseas.

     Thirdly, together with the Hong Kong Shipowners
Association and the Trade Development Council, we are
considering holding promotional activities overseas to
encourage more overseas shipping companies to set up
offices here.

     Fourthly, to meet the need arising from our port
modernisation process, the scope and mode of operation of
the Hong Kong Seamen's Training Centre are being reviewed.
We hope to encourage more young people to join the
shipping industry through the offering of new courses.

     Fifthly, together with the Hong Kong Shipowners
Association, we are lobbying some of the international
maritime organisations and associations such as the Asian
Shipowners Forum to set up their respective secretariats
here, and bring together the shipowners associations in
Asia to consider the feasibility of setting up an
insurance market for vessels in the region.

     We believe that these measures can attract more
vessels to register here to further strengthen our
position as an international shipping centre.

End


3.  Work safety in manholes promoted
    ********************************

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

Question:

     Will the Government inform this Council:

     (a)  of the number of workers who met with accidents
while working in manholes in each of the past three years;

     (b)  of the main causes of these accidents; and

     (c)  whether the authority has considered stepping up
educational and promotional activities to enhance workers'
understanding of the requisite safety measures to be taken
while working in manholes; if so, what the details; if
not, why not?

Reply:

Madam President,

     (a)  The Labour Department does not keep separate
statistics of accidents by their places of occurrence.
The Administration is therefore unable to provide
statistics on the number of workers who met with accidents
while working in manholes in the past three years.
However, the Labour Department has looked into all the
fatal industrial accidents which happened from 1995 to
1997.  In the first two years, there was no fatal accident
involving work in manholes.  There were two such fatal
accidents in 1997, resulting in one death and four
injuries in the first case and one death in the second
case respectively.

     (b)  In the first fatal accident in February 1997,
one worker was overcome by gas whilst working in a sewer
pipe and four other workers were also overcome in the
rescue attempt.  One worker died after all five were
subsequently rescued.  In the second fatal accident in
December 1997, a diver was reported missing whilst working
inside a drainage and his body was later found.  The cause
of the accident is still under investigation by the Labour
Department.  In general, the common causes of accidents in
manholes are gassing, poisoning and in-rush of water.

     (c)  Safety precaution for work in manholes was one
of the main themes in the Labour Department's promotion of
occupational safety last year.  Promotional activities
included a seminar on "Safety of Work in Confined Space"
organised jointly by the Labour Department and the
Occupational Safety and Health Council (OSHC), publicity
drives during the assessment period for the Construction
Safety Award in early 1997 and the Construction Site
Safety Promotion Day in August 1997, an Announcement of
Public Interest on the danger of confined space work
broadcast on TV, and various leaflets and booklets on work
safety in manholes and confined space for distribution to
workers and their employers prepared by the Labour
Department and the OSHC.

     Work safety in manholes is also promoted during the
Labour Department's visits to industrial undertakings.
After a fatal accident in February 1997, Factory
Inspectors visited the management of 22 sewerage and
maintenance contractors whose work required entry into
confined space.  Advice was given to these managements on
specific safety precautions on entry into confined space,
safety management and risk assessment.  This will continue
this year.

     On training of work safety in manholes and confined
space, the Occupational Safety and Health Training Centre
of the Labour Department conducted 23 training courses in
1997.  There will be 12 more courses in the first six
months of 1998.  The OSHC launched a new one-day course
for site supervisors on safe working in confined space in
1997.  Additional classes have been included in the
Council's training plans for 1998.  The Council has also
produced a 20-minute training video depicting safe entry
into a confined space.  It will be made available this
month to organisations for training their workers.

     The OSHC will also launch a promotional campaign on
safe working in confined space this year.  It will include
"road shows" in different districts.  In its Construction
Industry Safety Promotional Campaign 1998, safe working in
confined space will be one of the major themes to be
featured.

     Finally, we will introduce an amendment to the
Factories and Industrial Undertakings (Confined Spaces)
Regulations in the next (1998/99) legislative session.
The primary purpose of the proposed amendment is to
provide better protection for workers working in confined
spaces including manholes through enhanced safety measures
and precautions, which include the requirements for
proprietors to make hazard assessments and for workers to
undergo special training respectively.  We will carry out
appropriate educational and promotional activities in
relation to the provisions of the proposed amendment.

End


4.  Cases of domestic violence
    **************************

     Following is a question by the Hon Selina Chow Liang
Shuk-yee and a reply by the Secretary for Health and
Welfare, Mrs Katherine Fok, in the Provisional Legislative
Council today (Wednesday):

Question:

     In view of the fact that a series of domestic
violence cases has occurred recently, will the Government
inform this Council:

     (a)  of the total number of reports on domestic
violence cases received last year and, among them, the
respective numbers of those involving wife-battering and
child abuse;

     (b)  of the number of people out of these cases who
were sanctioned legally, and the average penalties imposed
on them by the court; and

     (c)  whether it has studied the measures adopted by
other countries to prevent the occurrence of domestic
violence; if it has undertaken such a study, whether
reference will be made to the experience of these
countries; if it has not undertaken such a study, the
reasons for that?

Reply:

Madam President,

     (a)  The total number of reports of domestic violence
received by the Police, during the period January to
November 1997, was 682, including 454 reports of wife
battering.  However, it is acknowledged that not all
victims report incidents to the Police and therefore a new
reporting system was established in April 1997.  The
Central Information System operated by the Social Welfare
Department, collects information from Non-Governmental
Organisations, the Hospital Authority and various
government departments.  Between April and September 1997,
789 cases of spouse battering were made known to these
organisations; of these 30 involved male victims.

     As regards child abuse cases, the number of reports
received by the Police in 1997 was 1,100.  As child abuse
cases are not confined to a domestic environment, these
cases do not fall within the category of "domestic
violence" under the Police reporting system.

     (b)  As regards the number of people sanctioned and
the penalties involved, Police records are currently only
available up to June 1997.  Of the 599 child abuse cases
reported between January to June 1997, 156 persons were
convicted.  For the 12 months of 1996, the number of
convictions was 288.  In the majority of cases, the
persons convicted received probation or community service
orders or fines.  Concerning the 344 domestic violence
cases reported between January to June 1997, 33 persons
were convicted, nearly half of whom received fines.  The
corresponding figure for 1996 was 56.

     (c)  We have taken into account relevant overseas
experience when drawing up measures, and procedures, for
dealing with domestic violence in Hong Kong.  Insofar as
spouse battering is concerned, we have examined the
practice of other countries in particular, the UK and USA,
before finalising our own set of multi-disciplinary
Guidelines on the Handling of Battered Spouse Cases, for
local use.  The objective of these Guidelines is to
improve co-ordination between the various agencies
involved in the handling of these cases.  The temporary
residential services which we provide for battered wives,
in the form of refuges for women, are modeled on the
operational experience of similar shelters which exist for
battered women in the USA.  These shelters also provide a
counselling and casework service, organise self-support
groups and recreational activities for residents and their
children.

     As regards child protection, the Social Welfare
Department refers extensively to overseas research reports
and case handling procedures so as to ensure that our work
is in line with good international practice.  For example,
we have used the UK experience to help us develop our own
protocol to handle video recorded interviews of child
witnesses during criminal proceedings.  The environment in
which the interview is conducted, is made as homely as
possible and the child is accompanied by an independent
support person such as a social worker, teacher etc.

     In the past year, the Social Welfare Department has
invited experienced professionals from the USA, Canada and
the UK to provide training on a wide range of subjects.
These have included risk assessment, stress handling and
special features in dealing with child abuse and spouse
battering cases.  The training programmes are designed to
help enhance the quality of service offered by social
workers, the Police and medical staff involved in cases of
domestic violence.  In 1997, eight training programmes
involving overseas trainers were held and these were
attended by over 200 participants.

End


5.  Construction works of Sha Kok Mei Interim Housing project
    *********************************************************

     Following is a question by Dr the Hon Ho Chung-tai
and a reply by the acting Secretary for Housing, Mr Leung
Chin-man, in the Provisional Legislative Council today
(Wednesday):

Question:

     It is reported that, owing to the contractor's delay
in building the first block of the interim housing at Sha
Kok Mei, Sai Kung, the Housing Authority has decided to
re-tender the remaining uncompleted works.  In this
connection, will the Government inform this Council:

     (a)  of the current progress of the project;

     (b)  whether the project cost will be increased due
to the delay, and whether the Housing Authority will
recover the loss caused by the original contractor and
impose penalty on the latter;

     (c)  whether there are any residents affected by the
delay of the project; and

     (d)  how the Housing Department will monitor the
progress of the remaining works in order to avoid further
delay?

Reply:

Madam President,

     (a)  As at December 27, 1997, which was the date that
the site of Sha Kok Mei Interim Housing was re-entered by
the Housing Authority, the contractor had finished 80% of
the entire construction works.  The remaining unfinished
works are public area and external facilities, e.g.,
basketball grounds and fences.  Before that, the Housing
Authority had already given warnings to the contractor
several times, the project still was not completed on
schedule.  Therefore the Building Committee of the Housing
Authority decided to terminate the contract with the
concerned contractor and re-enter the site.

     (b)  The abovementioned delay will increase the cost
of the project.  Therefore, the Housing Authority will
seek compensation from the original contractor for the
resulting loss according to the contract terms and is
considering to take further penalty actions.  At present,
the Housing Authority has suspended the concerned
contractor from participating in other future contracts.

     (c)  As there are only 144 units under this interim
housing project and the scale of the project is small, the
slightly delay of the project will have there is no
significant impact to the overall supply of interim
housing or to the families which will be rehoused in
interim housing.

     (d)  The Housing Authority will invite tenders within
this month from other contractors with a good performance
record to complete the Sha Kok Mei Interim Housing
project.  In view of the abovementioned delay, the Housing
Authority will further enhance its monitoring work during
the construction to ensure that the works are in progress.

End


6.  Police has no plans for further restructuring
    *********************************************

     Following is a question by the Hon Choy So-yuk and a
reply by the Secretary for Security, Mr Peter Lai, in the
Provisional Legislative Council today (Wednesday):

Question:

     The Intelligence Wing of the Special Branch in the
former British Hong Kong Government was not dissolved
until the British Government was about to withdraw from
Hong Kong.  A similar department has not been set up since
the establishment of the Hong Kong Special Administrative
Region Government.  In this connection, will the
Government inform this Council:

     (a)  whether it will consider establishing a relevant
department expeditiously; if so, when such a department
will be established; if not, why not;

     (b)  whether it will take measures to increase the
transparency of such a department; if so, what the details
of these measures are; if not, why not; and

     (c)  whether it has adopted other specific measures
to ensure the social stability and public order in the
territory; if so, what the details are; if not, why not
and how it will protect the public's safety?

Reply:

Madam President,

     (a)  The Police Force has the responsibility for the
internal security of Hong Kong and are appropriately
structured to perform that role.  Its current management
structure follows largely the recommendations of the
Police Management Review (PMR) carried out between 1992
and 1994.  There are no plans for any further
restructuring, or for the creation of new departments
within the Police Force.

     (b)  41 of the 42 PMR reports have been made public.
As regards the report on the Security Wing, it cannot be
published for security reasons.  However, we have given a
confidential briefing of the Security Wing to the
Provisional Legislative Council's Security Panel.

     (c)  We accord high priority to the maintenance of
law and order.  To this end, we have adopted over the
years a number of specific measures. We have deployed over
2,100 additional Police officers to perform front-line
operational duties since 1992.  We have strengthened our
legislation by, for example, enacting the Organised and
Serious Crimes Ordinance.  We have enhanced our liaison
with our Mainland and international law enforcement
partners to tackle trans-boundary crimes.  A full
description of these measures are given in the 1997 Policy
Programme of the Security Bureau.  As a result of these
measures, our crime rate has continued to drop.  The
overall crime rate in 1997 was the lowest in the last 24
years.  Apart from combating crime, we have maintained
good social order while preserving Hong Kong as a free and
open society.  Most demonstrations proceeded peacefully.
We will continue our efforts in maintaining Hong Kong as
one of safest and most stable society.

End


7.  Findings of consultancy study on indoor air quality being examined
    ******************************************************************

     Following is a question by the Hon Allen Lee Peng-fei
and a reply by the Secretary for Planning, Environment and
Lands, Mr Bowen Leung, in the Provisional Legislative
Council today (Wednesday):

Question:

     The consultancy study on indoor air quality in Hong
Kong conducted by the Government was completed in 1997,
but the Environmental Protection Department indicated that
the relevant report would not be published until 2001.  In
this connection, will the Government inform this Council:

     (a)  of the reasons for the delay in publishing the
report;

     (b)  whether it will wait until 2001 for introducing
legislation to monitor and control indoor air quality;

     (c)  whether it knows the number of Hong Kong people
suffering from diseases related to the respiratory system
in each of the past three years due to poor indoor air
quality; and

     (d)  whether any system is in place to monitor indoor
air quality; if so, what the details are?

Reply:

Madam President,

     (a)  May I first clarify that the information in the
question is not true.  The Administration has no intention
to defer releasing the findings of the consultancy study
on indoor air quality in Hong Kong to 2001.  The study,
which started in 1995, was completed in September 1997.
We are examining its findings, and aim to consult the
Advisory Council on the Environment and the Environmental
Affairs Panel of this Council on the study and our
recommendations on the way forward in a few months' time.

     (b)  As mentioned in my answer to part (a) of the
question, we are examining the findings of the study and
considering practical mechanisms to monitor and control
indoor air quality.  The Buildings Ordinance, the
Factories and Industrial Undertakings Ordinance, the
Occupational Safety and Health Ordinance, the Public
Health and Municipal Services Ordinance and the Places of
Public Entertainment Ordinance already have statutory
provisions to require buildings, workplaces and specified
public places such as restaurants and cinemas to comply
with basic ventilation and air quality standards to
safeguard public health in an indoor environment.  One of
the issues being considered at present is to develop a
more comprehensive statutory framework, possibly building
on these existing provisions, to strengthen control over
indoor air quality.

     (c)  We do not have information on the number of
people suffering from respiratory diseases as a result of
poor indoor air quality.  Respiratory disorders are
associated with a number of factors such as underlying
diseases, individual susceptibility, smoking and indoor
and outdoor air pollution.  Without detailed analysis, it
is not possible to attribute the cause of respiratory
disorders to a single factor.

     (d)  The approach we adopt in controlling indoor air
quality is through establishing basic air quality
standards and ventilation requirements.  Compliance with
these requirements is among the pre-requisites for
approval of building plans for residential and office
buildings and issue of operation licences for public
places covered by the Public Health and Municipal Services
Ordinance and the Places of Public Entertainment
Ordinance.  As for workplaces, the Labour Department
conducts inspections to ensure that they comply with all
aspects of statutory requirements under the Occupational
Safety and Health Ordinance including those concerning air
quality and ventilation.  The consultancy study has taken
stock of the current system of control and provided us
with a basis to develop a more comprehensive mechanism to
deal with indoor air pollution.

End


8.  Construction of village access roads
    ************************************

     Following is a question by the Hon Lo Suk-ching and a
written reply by the Secretary for Home Affairs, Mr David
Lan, in the Provisional Legislative Council today
(Wednesday):

Question:

     Will the Government inform this Council:

     (a)  of the rural villages without access roads in
Hong Kong;

     (b)  whether there are established policy and time-
table for the construction of access roads to these
villages; if not, why not; and

     (c)  whether it will consider allocating funds from
the Rural Planning and Improvement Strategy Minor Works
Programme in order to construct such roads?

Reply:

Madam President,

     (a)  In Hong Kong there are 74 villages (out of a
total of 690 villages) which do not have access roads.

     (b)  We assess the need for the construction of
village access roads on a case-by-case basis.  Nine out of
the 74 villages aforementioned will be provided with
access roads by the Government.  Where needs are
established, the Government will consider providing access
roads to the remaining 65 villages.  We will implement
such endorsed projects according to their degree of
urgency.

     (c)  The Rural Planning and Improvement Strategy
Minor Works Programme has been set up mainly to upgrade
the infrastructure and improve the living environment of
the rural community.  The provision of village access
roads under this programme complements the overall
provision of roads by the Highways Department and, where
appropriate, the Government will allocate funds from this
programme to construct such roads.

End


9.  Measures to improve Octopus to be explored
    ******************************************

     Following is a question by the Hon Eric Li Ka-cheung
and a written reply by the Secretary for Transport,
Mr Nicholas Ng, in the Provisional Legislative Council
today (Wednesday):

Question:

     Will the Government inform this Council:

     (a)  whether it knows of the number of complaints
lodged by blind people to the organisations concerned
regarding the difficulties encountered by them in using
the Octopus; and

     (b)  whether the Commissioner for Rehabilitation will
approach organizations for the blind so as to understand
their actual difficulties and to identify positive and
effective solutions to their problems?

Reply:

Madam President,

     Since the introduction of Octopus on September 1,
1997, Creative Star and the public transport operators
involved have received three complaints regarding the
difficulties which blind people encountered in using
Octopus.  The complaints related to the absence of an
audible system to enable blind people to be told of the
completion of value adding at the Add Value Machines and
the remaining value of the Octopus card at the Octopus
Processors.  They also commented that the audible signals
at the Octopus Processors to indicate the different
processing status were not easily distinguished.  Creative
Star has explained to the complainants that similar to the
arrangements for Common Stored Value Tickets (CSVT) where
no audible system was provided, blind people can approach
ticket offices in MTR and KCR stations for assistance to
check the card value remaining and to reload their cards.
Moreover, Creative Star would further explore improvement
measures.

     Before the introduction of Octopus, Creative Star
gave a presentation to the Hong Kong Blind Union on the
arrangements for the blind in using Octopus.  The
Commissioner for Rehabilitation, Transport Department,
Creative Star and the two railway corporations recently
convened a further meeting with organisations for the
blind and relevant social service agencies to exchange
views.  The problems identified were similar to those
already referred to Creative Star and the public transport
operators.

End


10. Citizens of Commonwealth countries working in Hong Kong
    *******************************************************

     Following is a question by the Hon Chan Wing-chan and
a written reply by the Secretary for Security, Mr Peter
Lai, in the Provisional Legislative Council today
(Wednesday):

Question:

     Will the Government inform this Council of:

     (a)  the number of citizens of Commonwealth countries
who came to work in Hong Kong with employment visas during
the three years between 1994 and 1996; and

     (b)  a breakdown of the data in respect of these
persons by:

          (i)  sex and age;
         (ii)  sex and education level;
        (iii)  age and education level;
         (iv)  education level and trades in which they
were employed in Hong Kong;
          (v)  education level and positions held in Hong
Kong;
         (vi)  age and trades in which they were employed
in Hong Kong;
        (vii)  age and positions held in Hong Kong?

Reply:

Madam President,

     (a)  The statistics on employment visas issued to
Commonwealth nationals in 1994, 1995 and 1996, are at
Annex.  The figures include approved applications for
change of status from visitor to employment.

     As some of the nationalities of persons issued with
employment visas under the General Importation of Labour
Scheme, Special Labour Scheme for the New Airport and
Related Projects and the Supplementary Labour Scheme are
not captured in our computer system, statistics on visas
issued to Commonwealth nationals under these schemes
cannot be provided.

     (b)  A breakdown of the statistics by age, sex, trade
and education level is not immediately available.

                                                     Annex

  No. of Employment Visas Issued to Commonwealth nationals

Profession                            1994    1995    1996

Technical Professionals                714     961     739
Administrators, managers and          1218    1150    1574
  professionals
Others (e.g. representatives          2185    1817    1215
  of overseas companies)

Sub-total                             4117    3928    3528

Foreign Domestic Helpers               650     588     516
General Importation of Labour Scheme        not available
Special Labour Scheme for the New           not available
  Airport and Related Projects
Supplementary Labour Scheme                 not available

Total                                 4767    4516    4044

End


11. Construction of the Science Park, Phase I
    *****************************************

     Following is a question by Dr the Hon Yeung Chun-kam
and a written reply by the Acting Secretary for Trade and
Industry, Mr Tam Wing-pong, in the Provisional Legislative
Council today (Wednesday):

Question:

     In connection with the Government's plan to seek
funding from the Finance Committee of this Council for the
construction of Phase 1 of the Science Park, will the
Government inform this Council:

     (a)  of the advanced hi-tech support facilities to be
provided in the Science Park, so as to attract local
industrialists to invest in and to develop high technology
industries; and

     (b)  whether the Planning Committee on Science Park
has made reference to the experiences of other Asia-
Pacific communities in developing high technology; if so,
of the areas that the Committee has made reference to and,
among the recommendations made by the Committee, those
that have been made by reference to such experiences?

Reply:

Madam President:

     (a)  The Science park will be an essential
infrastructural provision for Hong Kong industries to move
up the technological ladder and develop towards more
technology intensive and higher value-added business
activities.  The Planning Committee of the Science Park
has recommended that four multi-tenant buildings should be
constructed during Phase One of the Science park to
accommodate -

     (1)  administration facilities and general R & D
activities;

     (2)  R & D activities with heavy floor loading
facilities;

     (3)  special information technology facilities; and

     (4)  laboratory facilities.

     The Planning Committee has also recommended that
about 1.6 hectares of land within the Science park should
be reserved for lease to individual companies which wish
to purpose-build their own premises, with the rental
charges based on the premium derived from the development
cost.  To enable the Science Park to attract high
technology business activities, the support facilities
recommended in the proposal will include -

     (1)  comprehensive basic facilities (such as optic-
fibre network, laboratories with drainage systems,
platforms for installing computer cables, etc.) and
infrastructural facilities (such as road network, water
works and drainage facilities, etc.);

     (2)  maintaining a database on market information, so
as to keep its tenants abreast of the latest marketing and
managerial skills;

     (3)  providing an incubator programme to offer
support services to newly-established technology
companies;

     (4)  assisting tenants to establish linkages with
local and overseas higher education and research
institutions, technology support organisations, other
science parks and the local industrial, financial and
business community.  These linkages would help them
capitalise on the local and overseas markets as well as
the information, resources and expertise in technology to
promote R&D activities, technology transfer and the
commercialisation of R&D findings.

     (5)  accommodation facilities for visiting scientists
and researchers who are not locally-based, in order to
cater for the needs of the tenants, and to attract
overseas scientists and researchers of high calibre to
come to work in the Science Park; and

     (6)  providing a good and comfortable working
environment, as well as daily social facilities.

     (b)  The Planning Committee has drawn on the
experiences of the region.  For example, as the operation
of the Science Park in Singapore was considered worth
studying, the Committee made a study visit to it and
exchanged views with its management and some of its
tenants.  Besides, a number of the Committee members are
very familiar with the development of other science parks,
including those in the region.  Some of the
recommendations of the Committee are based on the
experiences of these science parks, including: the design
of multi-tenant premises should aim at maximum flexibility
and adaptability to meet the various needs of tenants; key
tenants should be actively identified during the early
period of the Science Park so as to attract other
companies to join in; linkages should be established
between the Science Park Corporation and local and
overseas higher education and research institutions,
technology support organizations, other science parks, and
the local industrial, financial and business community;
and a comfortable working environment as well as quality
infrastructure and services should be provided etc.

End


12. Municipal Councils' principles on tobacco sponsorship
    *****************************************************

     Following is a question by Dr the Hon Leong Che-hung
and a written reply by the Secretary for Broadcasting,
Culture and Sport, Mr Chau Tak-hay, in the Provisional
Legislative Council today (Wednesday):
Question:
     Regarding the receipt by the Provisional Municipal
Councils of sponsorship from companies engaging in
tobacco-related business for the Councils' programmes,
does the Government know:

     (a)  whether the Councils have any guidelines in this
respect; if so, what the details are; and

     (b)  in respect of each Council in each of the past
three years:

     (i)   the number of such sponsored programmes and
their percentage of the overall programmes staged;

     (ii)  the maximum, minimum and total amounts of such
sponsorship; and

     (iii) the respective percentages of such sponsorship
as against the total cost and the total income of the
sponsored programmes?

Reply:

President,

     On the basis of information provided by the Urban
Services Department and the Regional Services Department,
the answers to Dr Hon Leong Che-hung's questions are as
follows:

     (a)  Both the Provisional Urban Council and the
Provisional Regional Council adopt the following
principles in regard to the acceptance of tobacco
sponsorship for its sports, entertainment and cultural
programmes:-

     (i)   No sponsorship from tobacco companies should be
accepted for the Council's activities; and

     (ii)  Sponsorship may be accepted from companies
whose business include but is not exclusively confined to
tobacco-related products, provided that no tobacco
advertising is made in any related publicity.

     These principles, however, apply only to programmes
organised by the Councils.  Activities organised by the
hirers of their venues are not subject to these
restrictions.

     (b)(i)  Over the past three years, the Provisional
Urban Council, or the former Urban Council, has received
no tobacco sponsorship for its activities whereas the
Provisional Regional Council, or the former Regional
Council, received one such sponsorship in 1997/98 against
some 14,700 sports, entertainment and cultural activities
organised by it in that year.  Details of this sponsorship
are shown in items (ii) to (iv) below.

     (ii)  Amount of sponsorship    Cash sponsorship of
                                      HK $500,000

     (iii) Percentage of            $500,000
           sponsorship amount       ---------(about 15%)
           over the cost of the   $3,334,126
           programme concerned

     (iv)  Percentage of            $500,000
           sponsorship amount       ---------(about 47.4%)
           over ticket income     $1,054,637
           from the programme
           concerned
End


13. Measures to ease workload of Social Security Assistants
    *******************************************************

     Following is a question by the Hon David Li and a
written reply by the Secretary for Health and Welfare,
Mrs Katherine Fok, in the Provisional Legislative Council
today (Wednesday):

Question:

     The survey undertaken by the Hong Kong Chinese Civil
Servants' Association points out that the workload of the
Social Security Assistants responsible for the
Comprehensive Social Security Assistance scheme is
accumulating, despite the fact that about 70% of them are
regularly working overtime (on average one to two hours
per working day) and despite their efforts to reduce the
processing time of such applications (such as cutting down
the number of home visits).  In this connection, will the
Government inform this Council whether it is aware of such
situation and if so, whether it will consider allocating
additional financial resources for the creation of
additional posts?

Reply:

President,

     We are keenly aware of the increasing burden brought
on our staff, especially those in the frontline, by the
continuous increase in both the number and the complexity
of Comprehensive Social Security Assistance (CSSA) cases.

     At the invitation of the Director of Social Welfare
(DSW), the Management Services Agency (MSA) conducted a
review of the operation of Social Security Field Units
(SSFUs) in 1995.  The MSA made various recommendations
which sought to streamline work procedures so as to ensure
the provision of quality service to the public and
improving the 'working environment' for our frontline
staff.

     Pursuant to the recommendations of this MSA review,
we have created since April 1996 a total of 237 additional
posts, thereby increasing the staff in the SSFUs by 24%.
Out of these 237 posts, 161 or 68% cover Social Security
Assistant (SSA) grade staff, that is an increase of 60%
for Senior Social Security Assistant (SSSA) ranking and 6%
Social Security Assistant ranking staff.

     In tandem with the increase in staff in our SSFUs,
the number of CSSA applications grew at an even faster
rate.  After consultation with his staff, DSW introduced
in August 1997 certain interim work easement measures to
alleviate the work pressure on his staff.  With the
introduction of these easement measures, the estimated
shortfall in staff of the SSA grade was brought down from
128 to 17.

     There is, at the same time, no evidence to suggest an
accumulation of pending CSSA cases.  Statistics maintained
by the various SSFUs indicate that both new CSSA cases and
review cases are being processed smoothly.  Hence,
strictly speaking, there is no backlog in the processing
of CSSA cases.

     To cope with the continued substantial increase in
caseload, DSW will, by way of long term measures,

     (i)   create more than 100 additional posts in the
SSFUs in 1998/99;

     (ii)  further streamline work procedures and consider
possible re-distribution of duties among different grades
of staff; and

     (iii) where situation warrants obtain resources for
overtime work.

End


14. Arts & cultural activities to develop in a diversified manner
    *************************************************************

     Following is a question by the Hon Chan Choi-hi and a
written reply by the Secretary for Broadcasting, Culture
and Sport, Mr Chau Tak-hay, in the Provisional Legislative
Council today (Wednesday):

Question:

     Will the Government inform this Council:

     (a)  how it is coordinating the activities organised
by various cultural bodies in Hong Kong at present;

     (b)  whether it will consider creating a post of
Secretary for Culture for coordinating and promoting
cultural activities in Hong Kong; and

     (c)  whether it will formulate a comprehensive policy
on culture; if so, of the specific details of the policy;
if not, why not?

Reply:

President,

     My answers to the questions raised by the Hon Chan
Choi-hi are as follows:

     (a)  Many of the activities organised by the local
arts and cultural bodies in Hong Kong are not funded by
the Government.  Obviously, the Government does not have
the responsibility nor the authority to coordinate these
activities.  As regards the bodies funded by the two
Provisional Municipal Councils (PMC), the Government does
not have the authority to coordinate their activities
either since the Councils are independent statutory
bodies.  As for those bodies funded by the Hong Kong Arts
Development Council, the Council will coordinate their
activities if necessary.

     In a nutshell, as a government that upholds the
freedom of speech, we believe that the Government should
refrain from intervening in activities organised by arts
and cultural bodies.  Within the constraints imposed by
limited resources and having regard to the principle that
public funds should be put to optimum use, arts and
cultural activities should be allowed to develop in a free
and diversified manner.

     (b) & (c)  Before answering part (b) & (c) of the
question, we need to understand the meaning of "culture".

     According to "Word-Ocean", culture means "the
evolution of civilisation of mankind through the
achievements made by human societies as embodied in
various fields such as science, arts, religion, ethics,
law, customs and traditions. In sum, these can be referred
to as Culture."

     Since such a definition is too broad and embraces too
many aspects of human activities, the SAR Government will
not use it as the basis for considering whether a
Secretary for Culture post should be created and whether a
comprehensive policy on culture should be formulated. If a
narrower definition is adopted, it can be said that arts
policy equals culture policy.  In this regard, as I
pointed out to Members at the PLC Panel on Broadcasting,
Culture and Sport meeting on October 16 last year, at
present, most of the resources allocated by the SAR
Government for the promotion of arts and culture are
controlled by the two Provisional Municipal Councils.
Being independent statutory bodies, the two PMCs are
empowered to formulate their own policies and decide how
their resources are to be used.  The SAR Government has no
power to intervene.  In such circumstances, it is not
possible for the SAR Government to formulate and implement
a comprehensive arts policy on its own.  As we all know,
the Constitutional Affairs Bureau is now conducting a
review on the structure of district organisations with a
view to making recommendations on the future role of the
two Municipal Councils.  On the basis of these
recommendations, the SAR Government will decide how all
existing resources can be used more effectively to promote
arts policy.

     Although the kind of culture policy the SAR
Government should formulate in the future is still an open
question, I would like to stress that the SAR Government
attaches great importance to this aspect of its
responsibilities.  For many years, Hong Kong has been set
apart from the Mainland.  We have lived in a society and a
cultural environment very different from the Mainland.  As
we face the historic change arising from our reunification
with the motherland, every individual needs to go through
a gradual process of getting to know Chinese history and
culture, so as to achieve a sense of national and cultural
identity.

End


15. Dissemination of information on air quality
    *******************************************

     Following is a question by Dr the Hon Law Cheung-kwok
and a written reply by the Secretary for Planning,
Environment and Lands, Mr Bowen Leung, in the Provisional
Legislative Council today (Wednesday):

Question:

     The air quality in Hong Kong was very poor on
December 18, 1997.  Thus, the department concerned
reminded the public, especially those suffering from
respiratory problems, to stay indoors as far as possible.
In this connection, will the Government inform this
Council of:

     (a)  the channels through which the above message was
conveyed to the public, and the number of times the
message was delivered on that day;

     (b)  the channels through which people with hearing
or visual impairments could receive the message; and

     (c) the arrangements that is being made to keep
students attending classes to stay in classrooms as far as
possible on days when the air quality is poor?

Reply:

Madam President,

     (a)  On December 18, 1997, in anticipation that the
Air Pollution Index would likely exceed the unhealthy
level of 100 later in the day, the Environmental
Protection Department released an updated Air Pollution
Index forecast to TV and radio stations and schools at
7 am.  The information together with the corresponding
health advice was broadcast at the morning news and
weather reports of all radio and TV channels.  The Index
was updated and released again at 11:00 am, 12:00 noon and
4:00 pm, and was featured in all radio and TV news reports
at intervals of about two to three hours throughout the
day.  The information is also available through the Air
Pollution Index Hotline at 2827 8541.

     (b)  People with hearing or visual impairments can
also receive air quality information through TV and radio
broadcasts.  To assist people with hearing problems,
captions are incorporated in all Chinese TV news
programmes.  We are considering whether and how further
arrangements should be made to disseminate information on
poor air quality to groups with special needs.

     (c)  Announcements of poor air quality and
corresponding health advice are sent to all schools
through the Education Department by fax at the first
instance.  The Education Department has organised briefing
sessions to acquaint school heads with the Air Pollution
Index, the potential health effects associated with poor
air quality and the precautionary measures to be taken.
Circulars has also been issued to all schools informing
the teaching staff to advise students with heart or
respiratory illnesses to avoid physical exertion and
outdoor activities when the Air Pollution Index exceeds
100, and to extend such advice to all students when the
Index reaches 200 or above.

     Members may wish to know that the Environmental
Protection Department is currently reviewing the Air
Pollution Index system and revising the information
pamphlet on the Index to include more detailed advice.
The arrangements for the dissemination of information on
poor air quality will also be examined.

End


16. Mainlanders visiting HK on Two-way Exit Permit
    **********************************************

     Following is a question by the Hon Lo Suk-ching and a
written reply by the Secretary for Security, Mr Peter Lai,
in the Provisional Legislative Council today (Wednesday):

Question:

     Recently, some Mainlanders visiting Hong Kong on Two-
way Exit Permits gathered in Sai Kung to engage in illegal
activities (including getting employed illegally and
prostitution).  In this connection, will the Government
inform this Council:

     (a)  whether it is aware of the criteria adopted by
the authority concerned in the Mainland for issuing Two-
way Exit Permits;

     (b)  whether, after the transfer of sovereignty, it
has held discussions with the authority concerned in the
Mainland about the criteria for issuing Two-way Exit
Permits, and the number of permits issued each month;

     (c)  whether the Immigration Department has ever
suspected that some of the Two-way Exit Permit holders may
engage in illegal activities and thus refused their entry
since the transfer of sovereignty; if so, of the number of
such persons; and

     (d)  of the measures and specific actions in place to
forestall Two-way Exit Permit holders from engaging in
illegal activities in Sai Kung?

Reply:

Madam President,

     (a)  We understand that the criteria adopted by the
Ministry of Public Security in the Mainland, which is
responsible for the management of the Two-way Permit (TWP)
Scheme, for issuing TWPs are governed by the "Interim
Measures for the Control of Chinese Citizens Travelling on
Private Business to or from the Regions of Hong Kong or
Macao" approved by the State Council of the Central
People's Government in 1986.

     (b)  The Administration regularly hold discussions
with the Mainland authorities on various aspects of the
TWP Scheme.  This practice has continued after the
reunification.

     (c)  In the period July - December 1997, a total of
647 TWP holders were refused landing by the Immigration
Department because of their doubtful intention of visit.

     (d)  To combat the problems of TWPs engaging in
illegal activities in Sai Kung area, we have vigorously
stepped up intelligence collection and enforcement
operations.  In 1997, 21 anti-illegal workers enforcement
operations had been conducted in Sai Kung area, resulting
in the arrest of 116 illegal workers and 23 Hong Kong
resident employers.  We also continually mount the
following territory-wide efforts to address these
problems -

     (i)   maintain tight control at immigration control
points to prevent suspected illegal workers and
prostitutes from entering Hong Kong;

     (ii)  monitor the fines and penalties imposed on
illegal workers and their employers to ensure that
sufficient deterrent effect is served;

     (iii) step up publicity to educate the public and,
more specifically, the employers not to employ illegal
workers;

     (iv)  encourage the public to report illegal
employment by using the Immigration Department hot-line or
fax-line;

     (v)   distribute information leaflets to TWP visitors
to remind them that they will be prosecuted and subject to
heavy penalties and repatriation if they engage in illegal
activities; and

     (vi)  enhance intelligence exchange with relevant
Mainland authorities to enable them to take corresponding
actions on their side.

End


17. Labour force participation rate
    *******************************

     Following is a question by the Hon Chan Wing-chan and
a written reply by the Secretary for Financial Services,
Mr Rafael Hui, in the Provisional Legislative Council
today (Wednesday):

Question:

     Will the Government inform this Council of the
reasons for the downward trend of the labour force
participation rate in Hong Kong in recent years?

Reply:

President:

     The overall labour force participation rate in Hong
Kong was indeed on a general downtrend in recent years.
This was mainly due to the secular downtrend in the labour
force participation rates of the younger age groups of 15-
19 and 20-24, reflecting the rising aspirations for higher
education amongst youngsters on the one hand, and greater
education opportunities in the community on the other.
The labour force participation rate for the elderly age
group of 60 and above was also on a secular decline,
partly because of the preference for earlier retirement as
the economy became increasingly affluent.  But at the same
time, the labour force participation rates for females in
the age groups of 25-29, 30-39, 40-49 and 50-59 were all
on the rise, as the greater inclination than before for
females to work was matched by an abundance of job
opportunities.

     The above developments show that the decline in the
overall labour force participation rate was mainly
influenced by the aspirations and preference of
individuals, and not due to the existence of rigidities or
the lack of employment opportunities in the labour market.
In fact, over the past five years, total employment
expanded significantly by around 15%, which matched
closely the corresponding growth in labour force, also at
around 15%.

End


18. Measures under Livestock Waste Control Scheme explained
    *******************************************************

     Following is a question by Dr the Hon Tang Siu-tong
and a written reply by the Secretary for Planning,
Environment and Lands, Mr Bowen Leung, in the Provisional
Legislative Council today (Wednesday):

Question:

     In view of the fact that a number of farms, in
treating their livestock waste, have caused environmental
pollution, will the Government inform this Council:

     (a)  of the measures in place to regulate the
disposal of livestock waste;

     (b)  of the staffing establishment in respect of its
Livestock Waste Control Scheme; whether it has examined
the adequacy of the establishment; if so, what the outcome
is; and

     (c)  how it encourages and assists farmers to observe
and meet the requirements and standards prescribed under
the Scheme?

Reply:

Madam President,

     (a)  Livestock waste pollution in Hong Kong is
controlled by implementation of the Livestock Waste
Control Scheme (LWCS).  The legislative control of the
scheme is provided under the Waste Disposal Ordinance, the
Waste Disposal (Livestock Waste) Regulation and the Public
Health (Animals and Birds) Ordinance.

     To comply with the statutory requirements stipulated
in the legislation, livestock farmers must adopt
appropriate treatment and management measures in the
collection, storage, transportation and disposal of
livestock waste.  For example, livestock farms must meet
the required discharge standards of Biochemical Oxygen
Demand (BOD) and Suspended Solids (SS) under a three-year
phased programme.  The discharge standards are applied to
different parts of the territory in four phases starting
from July 1994, and the standards are tightened each year.
Non-compliance with the discharge standards or any
improper livestock waste measures will be subject to
prosecution.  By 1.7.97, all farms are subject to control
under the scheme.

     On the other hand, livestock farms must also apply
for a Livestock Keeping Licence (LKL) issued by the
Agriculture and Fisheries Department (AFD).  Before an LKL
is issued, livestock farms have to install appropriate
waste treatment systems which could treat effluent to the
required discharge standards.

     To ensure that livestock farms are operated in an
environmentally acceptable manner, staff of Environmental
Protection Department (EPD) carry out regular inspections
to all existing livestock farms.  In addition, hotlines
are set up to handle complaint and enquiry related to
livestock waste pollution and control.

     (b)  The enforcement of livestock waste control is
carried out by the six Local Control Offices (LCOs) of
EPD.  At the end of 1997, the staff establishment for the
enforcement of the waste and water legislations in these
six LCOs was around 350 including both professional and
technical staff.  While the control team is also
responsible for enforcing chemical waste control, water
pollution control and other relevant waste control
matters, sufficient control on livestock waste is
provided.

     (c)  Apart from the legislative control, the
Government also provides assistance and service to
livestock farms through various means.

     The Government has provided technical assistance to
livestock farmers by issuing code of practice which gives
guidance and directions on the collection, storage,
treatment, transportation and disposal of livestock waste.
Moreover, various livestock waste treatment practices have
been introduced through guidelines for livestock farmers
in planning their waste treatment systems.

     To facilitate and encourage livestock farmers to
dispose of solid livestock waste in an environmentally
acceptable manner, the Government provides a free
livestock waste collection service to registered farms.
For liquid livestock waste, the three-year phased
programme on discharge standards allows sufficient time
for livestock farm operators to acquire the skills in
operating their waste treatment system in an effective
manner.

     To overcome the financial problem which may be
encountered by livestock farmers in the installation of
waste treatment systems, the Government provided financial
assistance to eligible livestock farms in the form of
Capital Grant (CG).  An equal amount of low interest loan
under the Kadoorie Agriculture Aid Loans administered by
AFD is also available for livestock farmers.

     In order to provide a formal communication channel
between the livestock industry and the Government, the
Livestock Waste Disposal Consultative Committee (LWDCC)
was formed in 1988 with representatives from the livestock
industry and representatives from relevant Government
Departments.  This forum ensures that all issues related
to the implementation of the LWCS are fully discussed and
understood by the livestock industry and views from the
livestock industry are fully reflected.

     As a result of continuous effort of the livestock
industry and the Government, water pollution from
livestock waste in the most polluted rivers and streams of
the New Territories has been reduced by over 80% since the
inception of the Livestock Waste Control Scheme in 1987.

End


19. HK companies involved in legal systems of overseas jurisdictions
    ****************************************************************

     Following is a question by the Hon Paul Cheng and a
written reply by the acting Secretary for Trade and
Industry, Mr Tam Wing-pong, in the Provisional Legislative
Council today (Wednesday):

Question:

     Concerns over recent rulings by US courts involving
Wharf Holdings and Matimak Trading Co Ltd have spilled
over into Hong Kong's international and local business
communities.  In Wharf Holdings' case, the wider issue is
US courts extending their jurisdiction to what might be
considered a Hong Kong matter.  As for the case involving
Matimak, this involves the standing of the HKSAR in the
eyes of the US courts.  Both issues have serious long-term
repercussions for both local and US companies doing
business in Hong Kong.  Will the Government inform this
Council:

     (a)  what actions have been taken so far to clarify
these issues, in particular, what has the Government
actually done to help support these Hong Kong companies;

     (b)  has the Government initiated any formal or
informal representation with appropriate authorities in
the US; and

     (c)  whether these issues must be dealt with between
the sovereign powers, if so, has the Government raised
them with the appropriate authorities in Beijing and
whether the Central Government has made representation to
the US Government?

Reply:

Madam President,

     In cases where the commercial dealings of Hong Kong
private companies involving the administrative or legal
systems of overseas jurisdictions which might give rise to
systemic implications on Hong Kong's normal commercial and
economic interests, the Government will consider the
proper course of action to take having regard to the
specific circumstances of the case.

     With respect to the Matimak case, the judgment handed
down by the US Second Circuit Court of Appeals in June
1997 threw doubt on the capacity of Hong Kong companies to
have access to US federal jurisdiction and would restrict
Hong Kong companies' fair and equal access to US courts.
In July 1997, the Government submitted an amicus brief to
support the applications of Matimak for the case to be
reheard.  Subsequently, the Second Circuit Court of
Appeals issued an amendment to its previous judgment
stating clearly that the ruling was confined to federal
cases arising prior to July 1, 1997 and the court
expressed no view as to the status of Hong Kong companies
after July 1, 1997.  Also according to US law,
jurisdiction to sue and be sued in US federal courts is
determined by the legal status of the parties as at the
commencement of the legal action.  On this basis and as a
consequence of the amended judgment, we are of the view
that the Matimak decision was not intended to apply to
cases involving Hong Kong companies arising after June 30.
Matimak is now seeking a review of the case by the US
Supreme Court.  We will continue to monitor the situation
and consider what further action the Government should
possibly take as the case proceeds.

     Since the Matimak case came to our attention, we have
made contacts with the US Consul General and other senior
officials of the US Government to seek their assistance in
the case.  We shall continue to liaise with the US
Administration on this case having regard to any further
development that may impact on our interests.

     With regard to the Wharf case, we are seeking legal
advice on the complicated issues involved.  We are, at
this stage, not in a position to comment on possible
Government action.

     We have not raised the cases with the Central
Government as we consider that it is within Hong Kong's
trade and economic autonomy to deal with the cases in
question and to liaise with the US authorities as we see
fit.

End






Government Home Page News Update