Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Monday, February 2, 1998
CONTENTS
========
1. HAB's bimonthly public opinion poll results
2. CE hosts spring reception
3. SWD counselling hotline service extended
4. Update on avian flu
5. Gross Domestic Product for the third quarter of 1997
6. Tender for the 20th issue of 2-year Exchange Fund Notes
7. Brazil revokes quantitative restriction on textiles
8. Draft Tai Po Outline Zoning Plan amended
9. Yau Tsim Mong District Chinese New Year Carnival
10. Water storage figure
1. HAB's bimonthly public opinion poll results
*******************************************
A number of significant shifts in the public
perception of problems, particularly those relating to the
economy and housing, were detected in the latest bimonthly
telephone opinion poll released by the Home Affairs Bureau
(HAB) today (Monday).
The poll, conducted by HAB from January 12 to 16, has
revealed that economy-related problems topped the list of
most-mentioned problems among the 1,605 survey respondents
successfully interviewed. It was the most pressing
concern among 52 per cent of the respondents, representing
a substantial increase compared with only 29 per cent in
the November survey. The last time it was ranked first on
the list was in January 1992.
The second most-mentioned problem was housing. At 44
per cent, it was substantially lower than that recorded in
the last survey (62 per cent).
Labour issues, at 33 per cent, took third place on
the list. It has gone up from 24 per cent.
An HAB spokesman attributed the sudden surge in
concern over the economy to the Asian currency turmoil and
the domino effect it caused among economies in the region,
albeit Hong Kong appeared to have fared much better than
its neighbouring countries.
"In the period of the survey, the media had
prominently reported that Asian currencies hit record lows
amid strong demand for the US dollar and continued
investor pessimism over the regional outlook. This
pessimistic sentiment eventually spread to Hong Kong,
causing the Hang Seng Index to drop 377 points on January
5," the spokesman said.
"In the days that followed, the HSI plunged below the
10,000 mark, which in fact had fallen for the sixth day in
a row by January 7. Local investor confidence was further
buffeted by Peregrine's troubles," the spokesman noted.
"In contrast, fewer respondents mentioned housing as
their primary concern. This may be attributable to the
Executive Council's decision to withdraw a proposal to
conduct a two-year rent review for public housing, the
decision to grant $18 billion for the Home Starter Loan
Scheme by Provisional Legislative Council's Finance
Committee, the Director of Housing, Mr Tony Miller's
remark that the Government was considering providing low-
interest loans to those on the public housing waiting list
and Secretary for Planning, Environment and Lands,
Mr Bowen Leung's disclosure that the Government had no
plans to change its housing target of supplying 85,000
units a year," he added.
Among respondents who mentioned labour-related
problem, 84 per cent mentioned that it was difficult to
find jobs or concerned about underemployment, up from 76
per cent, while 19 per cent were concerned about
importation of labour, compared with 14 per cent in
November.
The survey also revealed that fewer people were
satisfied with the present situation - its percentage of
respondents having fallen from 70 per cent to 58 per cent.
It was, in fact, the lowest ever recorded since this
telephone opinion survey was launched in January 1983.
Other findings in the survey showed that 43 per cent
were satisfied with the overall performance of Government,
almost unchanged from 45 per cent.
End
2. CE hosts spring reception
*************************
More than 400 guests from different walks of life,
including political and community leaders, attended a
spring reception hosted by the Chief Executive, Mr Tung
Chee Hwa, at Government House today(Monday). They
included members of the Executive Council, Provisional
Legislative Council, Provisional Regional and Urban
Councils as well as Provisional District Board chairmen.
Also attending the reception were local deputies to
the National People's Congress, Hong Kong members of the
National Committee of the Chinese People's Political
Consultative Conference and Hong Kong members of the
Committee for the Basic Law of the HKSAR. Accompanying
Mr Tung were SAR Government principal officials who
greeted guests at the gathering.
End
3. SWD counselling hotline service extended
****************************************
The counselling hotline established by the Social
Welfare Department for people affected by the fatal bus
crash in Wan Chai would extend service for two more
days.
The hotline 9038 6541, manned by a departmental
clinical psychologist, will continue operation tomorrow
(Tuesday) and on Wednesday (February 4) from 9 am to 9 pm.
A spokesman for the department today (Monday) said
the hotline had so far received 37 calls for assistance,
eight of which were considered serious and would need
follow-up.
On financial assistance to the victims, the spokesman
said over $40,000 had been granted from trust funds to
assist families of the deceased in burial and maintenance
expenses.
In addition, the department had received 31
applications from the victims or families of the victims
seeking speedy financial assistance from the Traffic
Accident Victims Assistance Scheme.
End
4. Update on avian flu
*******************
The Department of Health (DH) announced today
(Monday) that there was no new case of influenza A (H5N1)
today.
The total number of cases stands at 18 confirmed
cases.
The conditions of these cases remain the same as of
January 16.
End
5. Gross Domestic Product for the third quarter of 1997
****************************************************
The preliminary estimates of the expenditure-based
Gross Domestic Product (GDP) for the third quarter of 1997
and revised estimates for earlier periods are released
today (Monday) by the Census and Statistics Department.
In the third quarter of 1997, GDP had a robust,
albeit somewhat decelerated, growth of 5.7% in real terms
over a year earlier. The corresponding growth rates in
the first and second quarters were 6.0% and 6.8%.
Amongst the major GDP components, private consumption
expenditure grew strongly, by 11.6% in real terms in the
third quarter of 1997 over a year earlier, mainly
underpinned by spending on high-value consumer items such
as motor vehicles and other consumer durables. This was
the fastest growth rate of private consumption expenditure
ever recorded since the second quarter of 1987.
Government consumption expenditure in national
account terms, on the other hand, fell by 0.1% in real
terms in the third quarter of 1997 over a year earlier.
On investment spending, gross domestic fixed capital
formation recorded a year-on-year increase of 11.8% in
real terms in the third quarter of 1997. Within this
total, construction output in the private sector surged by
18.1% in real terms, stimulated by the earlier buoyancy in
the property market.
On the other hand, construction output in the public
sector fell by 4.8% in real terms, following the
completion of most of the projects under the Airport Core
Programme. Taken together, overall expenditure on
construction rose by 7.9% in real terms. Concurrently,
expenditure on machinery and equipment grew by 7.7% in
real terms.
As to external trade in goods, re-exports increased
by 4.2% in real terms in the third quarter of 1997 over a
year earlier. Domestic exports recovered to a growth of
6.0% in real terms in the third quarter of 1997, arresting
the declining trend since the fourth quarter of 1995.
Taken together, total exports of goods increased by 4.4%
in real terms. Meanwhile, imports of goods registered a
growth of 7.1% in real terms.
Exports of services declined by 3.5% in real terms in
the third quarter of 1997 over a year earlier, mainly due
to the substantial decline in visitor arrivals and hence
tourist receipts. Nevertheless, offshore trading and
exports of other trade-related services showed some
increases. Concurrently, imports of services increased by
6.8% in real terms, along with continued growth in
outbound trips made by Hong Kong residents.
The implicit price deflator of GDP, as a broad
measure of overall inflation in the economy, rose by 6.0%
in the third quarter of 1997 over a year earlier. This
was slower than the corresponding increases of 6.7% and
7.6% in the first and second quarters.
Along with the release of the preliminary GDP
estimates for the third quarter of 1997, the GDP estimates
for the earlier periods have also been revised. Taking
into account information newly available, the GDP growth
rate in real terms for 1996 is revised upwards from 4.9%
to 5.0%. The GDP growth rate in real terms for the first
quarter of 1997 is revised slightly downwards to 6.0%,
while that for the second quarter of 1997 slightly upwards
to 6.8%.
Commenting on these latest GDP figures, a Government
Secretariat spokesman acknowledged that growth of the
economy had been particularly robust during the first
three quarters of 1997, especially in the second quarter.
The GDP growth rate in that quarter was the highest since
the third quarter of 1992.
However, he cautioned that a marked slackening in
growth was likely to have occurred in the fourth quarter
of last year, as the contagion effect of the regional
financial turmoil spread to the Hong Kong economy. He
said that the preliminary estimates of GDP for 1997 as a
whole would be released on Budget Day (February 18).
More details on the annual and quarterly estimates of
GDP are published in a report entitled "Quarterly Report
of Gross Domestic Product Estimates Third Quarter 1997".
The preliminary estimates of the production-based GDP for
1996 and final estimates for 1995 are also published in
this report.
The report is now on sale at $13 per copy at the
Government Publications Centre, Ground Floor, Low Block,
Queensway Government Offices, 66 Queensway, Hong Kong. It
may also be purchased at the Publications Unit of the
Census and Statistics Department, 19th Floor, Wanchai
Tower, 12 Habour Road, Wan Chai, Hong Kong.
Enquiries about this publication may be directed to
the National Income Branch (1) of the Census and
Statistics Department (Tel No: 2582 5077).
End
6. Tender for the 20th issue of 2-year Exchange Fund Notes
*******************************************************
The Hong Kong Monetary Authority today (Monday)
announced that the tender for the twentieth issue of 2-
year Exchange Fund Notes will be held on Monday (February
9) for settlement on the following day (February 10).
Similar to the previous issue, an amount of HK$500
million 2-year Notes will be on offer. In addition,
another HK$100 million will be held as reserve by the Hong
Kong Monetary Authority for supply to Market Makers in the
secondary market. The Notes will mature on February 10,
2000 and will carry interest at the rate of 10 per cent
per annum payable semi-annually in arrears.
Members of the public who wish to tender for the
Notes may do so through any of the Market Makers or
Recognized Dealers on the published list which can be
obtained from the Hong Kong Monetary Authority at 30th
floor, 3 Garden Road, Hong Kong (or telephone 2878 8150).
Each tender must be for an amount of HK$50,000 or integral
multiples thereof.
HONG KONG MONETARY AUTHORITY
EXCHANGE FUND NOTE PROGRAMME
TENDER INFORMATION
_________________________________________________________
Tender information for the twentieth issue of 2-year
Exchange Fund Notes:
Issue Number : 2002
Tender Date and Time : Monday, February 9, 1998,
9.30 am to 10.30 am
Issue and Settlement Date : Tuesday, February 10, 1998
Amount on Offer : HK$500 million plus an
additional HK$100 million
as reserve stock for the
Monetary Authority
Maturity : Two years
Maturity Date : February 10, 2000
Interest Rate : 10% per annum payable
semi-annually in arrears
Interest Payment Dates : August 10, 1998,
February 10, 1999,
August 10, 1999,
February 10, 2000
Tender Amount : Each tender must be for an
amount of HK$50,000 or
integral multiples thereof.
Members of the public who
wish to tender for the Notes
may approach Market Makers
or Recognized Dealers on the
published list
Other details : Please see Information
Memorandum published or
approach Market Makers or
Recognized Dealers
End
7. Brazil revokes quantitative restriction on textiles
***************************************************
Effective from January 1, 1998, Brazil has revoked
quantitative restriction on the import of woven artificial
filament fabrics (Category 618) from Hong Kong, in
compliance with the recommendation of the Textiles
Monitoring Body (TMB) of the World Trade Organisation
(WTO).
"We are pleased with Brazil's decision as it
signifies not only removal of unwarranted quota
restriction against Hong Kong textile products, but more
importantly disciplines in the multilateral trading
system," Assistant Director-General of Trade (Asia and
Americas Division), Mr Patrick Nip, said today (Monday).
"It is important for us to ensure that fellow WTO
Members play by rules, so that we can rely on the WTO
dispute settlement framework to protect our trade
interests," he said.
"The revocation of Brazil's quantitative restriction
against Hong Kong textile products under Category 618 is a
result of Hong Kong's representation to the TMB back in
1996," Mr Nip noted.
"The TMB ruled that the quantitative restriction
should be rescinded at the latest by December 31, 1997."
Brazil claimed that there was an upsurge of the
import of Category 618 products from Hong Kong and that it
had caused serious damage to its domestic industry.
Invoking the WTO Agreement on Textiles and Clothing's
safeguard provisions which permit temporary restriction on
imports up to three years, Brazil imposed quantitative
restriction on the import of Category 618 products from
Hong Kong in June 1996.
Bilateral consultations between Brazil and Hong Kong
were conducted in July 1996 in Geneva. As no mutually
satisfactory solution was reached, Hong Kong took the
matter to TMB in November 1996 and March 1997
respectively. The TMB ruled that Brazil's action should
be terminated by the end of 1997 the latest.
End
8. Draft Tai Po Outline Zoning Plan amended
****************************************
The Town Planning Board announced today (Monday)
several amendments to the draft Tai Po Outline Zoning
Plan.
The amendment involves the rezoning of an area of
about 3.81 hectares adjoining the village at Pun Shan Chau
in Planning Area 38 from "Green Belt" to "Village Type
Development" to meet the long-term demand for small houses
there.
Another amendment is to rezone about 1.48 hectares of
land at Shan Tong Road in Planning Area 38 from "Green
Belt" and "Residential (Group C)" to "Residential (Group
C)4" to better reflect the development potential of the
area.
As a result, the Notes of the Plan have been amended
to incorporate the "Residential (Group C)4" zone.
Development restrictions for this zone include a maximum
plot ratio of 1.2, a maximum site coverage of 30 per cent
and a maximum building height of 4 storeys over carport.
The amended plan (No. S/TP/9) is available for public
inspection until February 17 during office hours at:
* Planning Department,
16th floor, Murray Building,
Garden Road,
Central;
* Sha Tin, Tai Po and North District Planning Office,
Ground floor,
Sha Tin Government Offices,
6 Tung Lo Wan Hill Road,
Sha Tin; and
* Tai Po District Office,
Tai Po Government Offices Building,
Ting Kok Road,
Tai Po.
Copies of the draft plan are available for sale at
the Survey and Mapping Office, Lands Department, 14th
floor, Murray Building, Garden Road, Central and the
Kowloon Map Sales Office, ground floor, 382 Nathan Road,
Kowloon.
Any person affected by the amendments to the plan may
submit written objections to the Secretary of the Town
Planning Board, c/o Planning Department, 13th floor,
Murray Building, Garden Road, Central, before February 17,
1998.
End
9. Yau Tsim Mong District Chinese New Year Carnival
************************************************
Members of the public are welcome to take part in the
Yau Tsim Mong District Chinese New Year Carnival to be
held at the Kowloon Park Piazza on February 8 (Sunday).
The fun-filled carnival, featuring performances by
singers, game stalls, magic show, lion dance,
demonstration of Chinese arts and craft and lucky draw,
will last from 2.30 pm to 4.30 pm. Admission is free.
The event is organised by the Yau Tsim Mong District
Chinese New Year Programme Organising Committee 1998, with
assistance from the Yau Tsim Mong District Office and
sponsored by the Yau Tsim Mong Provisional District Board
and Provisional Urban Council.
Officiating guests will include the Yau Tsim Mong
District Officer, Ms Rebecca Pun; the Yau Tsim Mong
Provisional District Board Chairman, Mr Chow Chun-fai; and
the chairman of the Yau Tsim Mong District Chinese New
Year Carnival Organising Committee 1998, Mr Shum Tak-on.
Tickets are now available at the Public Enquiry
Services Counter of the Yau Tsim Mong District Office at
ground floor, Mong Kok Government Offices, 30 Luen Wan
Street, Mong Kok. Each person is entitled to four
tickets.
For enquiries, please call 2399 2580.
End
10. Water storage figure
********************
Storage in Hong Kong's reservoirs at 9 am today
(Monday) stood at 79.5 per cent of capacity or 465.705
million cubic metres.
This time last year the reservoirs contained 456.879
million cubic metres of water, representing 78 per cent of
capacity.
End
