Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Monday, February 16, 1998 CONTENTS ======== 1. CE to visit Bonn, Frankfurt and Paris 2. Unemployment & underemployment statistics released 3. Budget Speech on Internet 4. Government advice to travellers 5. IMF fully endorses Hong Kong's fiscal policy 6. Fire safety improvement works at Nathan Road Building 7. Working groups to review academic system 8. More resources on planning, environment and lands commitments 9. TOC Education Resources Centre moves 10. Three pre-sale consents issued in January 11. South China cargo to boost HK port 12. Tender for the 10th issue of 7-year Exchange Fund Notes 13. Domestic exports statistics classified by industrial origin 14. Govt subvention granted to drug treatment agencies 15. Update on avian flu 16. Water cut in Yuen Long and Sheung Shui 17. Water storage figure 1. CE to visit Bonn, Frankfurt and Paris ************************************* The Chief Executive, Mr Tung Chee Hwa, will visit Bonn, Frankfurt and Paris between March 8 and 14 to strengthen Hong Kong's ties with Germany and France and to update political and business leaders in both countries on developments in Hong Kong. The Chief Executive will reassure overseas audiences of Hong Kong's continued role as a regional business and financial centre, and as the pre-eminent gateway to Mainland China and the East-Asian region. He will highlight the active role being played by Hong Kong in the tripartite business relation involving Hong Kong, Mainland China and other trading partners, in welding together the relative strengths of the three. Mr Tung will discuss with political and business leaders the recent Asian financial crisis and will underline Hong Kong's sound economic fundamentals and the fact that our financial markets have remained stable. Mr Tung will use the opportunity to brief his interlocutors on the smooth implementation of the "one country, two systems" principle and latest developments in Hong Kong since its reunification with China. He will seek to promote travel convenience for HKSAR passport holders. Mr Tung will also emphasise Hong Kong's advantages as a service centre. He will update his interlocutors on the major infrastructural projects in the pipeline, and the many business opportunities arising from these projects and other developments in Hong Kong. The Chief Executive will be in Bonn and Frankfurt on March 9 and 10, and in Paris from March 11 to 13. He will return to Hong Kong on March 14. In Bonn, Mr Tung will call on the German Chancellor Helmut Kohl and the President of the Federal Parliament (Bundestag) Mrs Rita Sussmuth. He will have meetings with senior ministers of the Federal Government, other political leaders and think-tank groups. He will also attend a dinner hosted by the Asia-Pacific Committee of German Industries (APA) together with the Federation of German Industry (BDI), the Association of German Chambers of Industry and Commerce (DIHT) and the East Asia Association (OAV). The Chief Executive will meet leaders of the business and financial community in Frankfurt, including the President of the European Monetary Institute. There, he will also deliver a keynote speech at a luncheon jointly hosted by the Hong Kong Trade Development Council and the Hong Kong Economic and Trade Office based in Brussels. In Paris, Mr Tung will call on French President Jacques Chirac and Prime Minister Lionel Jospin. He will meet other senior ministers of the French Government, as well as leaders of the business and financial community in Paris. He will give a keynote address at a luncheon jointly hosted by the Hong Kong Trade Development Council and the French Employers Association (CNPF). Mr Tung will also take the opportunity of his visit to France to speak to major think tanks and key business organisations. End 2. Unemployment & underemployment statistics released ************************************************** The seasonally adjusted unemployment rate for the period October - December 1997 was 2.5%, and the underemployment rate was 1.3%, according to the latest labour force statistics released today (Monday) by the Census and Statistics Department. For the period November 1997 - January 1998, the provisional seasonally adjusted unemployment rate remained unchanged, at 2.5%, while the provisional underemployment rate was higher, at 1.5%. Comparing the latest three-month period November 1997 - January 1998 with the period October - December 1997, increases in unemployment rate were seen in the manufacturing and the real estate sectors, while decreases were observed in the decoration and maintenance and the restaurants/hotels sectors. The unemployment situation in the other major sectors was broadly stable. As to the underemployment rate, the increase occurred mainly in the decoration and maintenance, transport and manufacturing sectors. The underemployment situation in the other major sectors was broadly stable. In the three months ending December 1997, total labour supply rose to 3,330,200, of which 3,253,400 were employed and 76,800 were unemployed. In the same period, the number of underemployed persons stood at 44,000. The unemployment and underemployment statistics were obtained from a continuous General Household Survey. The survey for October - December 1997 covered a quarterly sample of some 23,500 households or 78,300 persons selected scientifically to represent the land-based civilian non-institutional population in Hong Kong. Data on labour force characteristics were obtained from the survey by interviewing each member aged 15 and over in the households sampled. In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation. Being "seasonally adjusted" refers to the fact that unemployment rate has been adjusted for seasonal variations in the proportion of first-time job-seekers in the labour force. Detailed analysis of labour force characteristics is given in the report on the General Household Survey which is published four times a year. The next report covering the quarter ending December 1997 will be on sale at the Government Publications Centre at ground floor, Low Block, 66 Queensway, Hong Kong, by the end of March 1998. End 3. Budget Speech on Internet ************************* The full text of the 1998/99 Budget Speech to be delivered by the Financial Secretary, Mr Donald Tsang, in the Provisional Legislative Council on February 18 (Wednesday), will be available to Internet users via the Hong Kong Special Administrative Region Government Home Page at website http://www.info.gov.hk after Mr Tsang's delivery of the speech. Copies of the Budget Speech will also be available for collection by members of the public from the Publishing Sub-division of the Information Services Department from 10.30 am and from all district offices from 4.30 pm on February 19 (Thursday). A budget guide highlighting the major points of the 1998/99 Budget and how they affect the Hong Kong citizens will be distributed free to the public from 4.30 pm on February 18 (Wednesday). A total of 400,000 copies will be issued. The easy-to-read leaflet, giving budget facts and figures at a glance, will be available immediately after the Financial Secretary has delivered his speech at 4.30 pm at: * Mass Transit Railway stations in Central, Causeway Bay, Tai Koo, Mong Kok, Wong Tai Sin, Kwun Tong, Tsim Sha Tsui, Kwai Fong and Tsuen Wan; * Kowloon Hung Hom, Kowloon Tong and Sha Tin stations of the Kowloon-Canton Railway Corporation; and from 4.30 pm to 7 pm at: * the Information Services Department Publishing Sub-Division, 17th floor, Siu On Centre, 188 Lockhart Road, Wan Chai; * the Government Publications Centre, Queensway Government Offices, Lower Block, ground floor, 66 Queensway; * all district offices, and * shopping centres of 49 housing estates: Hong Kong Island ---------------- Wan Tsui Siu Sai Wai Hing Tung Lei Tung Wah Fu (I) Kowloon ------- On Kay Court Kai Yip Lok Wah (North) Shun Lee Tak Tin Tsui Ping (North) Choi Wan (I) Chuk Yuen (South) Tsz Wan Shan Fung Tak Lok Fu Wong Tai Sin Oi Man Lai Kok Lei Cheng Uk Shek Kip Mei Pak Tin New Territories --------------- Sha Kok Mei Lam Hin Keng Wo Che Heng On Kwong Yuen Fu Shin Tai Wo Choi Yuen Wah Ming Cheung Fat Cheung Hong Lai Yiu Shek Lei (I) Tai Wo Hau Shek Wai Kok Hau Tak (II) Po Lam Yau Oi Leung King Butterfly Siu Hong Shan King Tai Hing Long Ping Tin Shui Fu Tung End 4. Government advice to travellers ******************************* In view of the recent disturbances in some parts of Indonesia, the Government advises Hong Kong residents travelling to Indonesia to be extra cautious and should avoid large crowds and situations that could turn violent, a government spokesman said today (Monday). "The Chinese Embassy in Indonesia has started registering Hong Kong residents who contact them or approach them for handling usual formalities so that assistance and protection can be rendered when necessary," the spokesman said. Hong Kong residents who encounter difficulties in Indonesia can approach the Chinese Embassy there for assistance (address: JL. JENDERAL SUDIRMAN KAV. 69, KEBAYORAN BARU JAKARTAN SELATAN-12190). The Embassy has assigned particular staff for related liaison work (tel nos: 6221-7244515, 6221-5761026, 6221-5761027 and 6221-5761024). End 5. IMF fully endorses Hong Kong's fiscal policy ******************************************** In a press information notice issued by the International Monetary Fund (IMF) today (Monday), the IMF Executive Board gave full endorsement to Hong Kong's existing policy framework including a prudent fiscal policy and the linked exchange rate system. The notice carried IMF's official assessment on Hong Kong's economic performance and prospects. The assessment was based on an annual consultation under Article IV of the IMF's Articles of Agreement with the Hong Kong Special Administrative Region of China. In their discussion on Hong Kong, directors of the IMF Executive Board fully supported the maintenance of the linked exchange rate system in Hong Kong. The directors described the system as "an important anchor for economic stability since 1983 and that it plays a vital role in demonstrating the commitment to an independent monetary and exchange rate policy in Hong Kong and in maintaining confidence in its status as an international financial centre. "Directors observed that, more recently, Hong Kong SAR's solid fundamentals and decisive policy actions had helped it withstand the regional financial crisis and the bouts of speculative attacks." In response to the IMF press information notice, a government spokesman made the following statement:- "We welcome the IMF's assessment which is a fair and thorough one. This represents a clean bill of health. We share their assessment that, notwithstanding the recent turmoil within the region, developments in Hong Kong's economy during the past year had been satisfactory in many respects. "We are aware that our short-term economic prospects may be clouded by the regional financial turmoil, but we are confident that with our solid economic fundamentals and resilience, Hong Kong will recover and come out even stronger. "We are glad that the IMF has endorsed our continued commitment to prudent fiscal policies. The 1998-99 Budget which has been drawn up in line with this philosophy will be delivered on February 18." End 6. Fire safety improvement works at Nathan Road Building ***************************************************** The Buildings Department has refuted a Chinese newspaper report today (Monday) about fire safety improvement works in a commercial building in Nathan Road. "We appreciate the response of the owners of the Everest Building at 241 to 243 Nathan Road to the call to raise fire safety standards," the Assistant Director of Buildings (Control and Enforcement), Mr Leung Siu-hong, said. "In fact, the majority of improvement works are now almost complete, thanks to the joint efforts of the Authorised Person appointed by the owners and the department." He said the department sent an advisory letter to the owner in March last year, pointing out fire risks and suggesting improvement measures. The owners responded in May and detailed proposals from their Authorised Person were submitted in July. "Through a process of analysis, verification and discussion of design assumptions and standards, the Authorised Person's proposals were accepted and remedial works commenced immediately. This reflects not only the flexible approach taken by the department but also the co- operation of the owners and the Authorised Person," Mr Leung said. "As regards the department's request for building plans for the addition of a concrete staircase and alterations to a structural floor slab proposed by the Authorised Person, this has nothing to do with fire safety but rather will jeopardise structural stability if not properly designed." Mr Leung said that since advisory letters were sent to 40 commercial buildings, the department had always provided suggestions and assistance to owners and Authorised Person. "So far, six buildings have completed rectification works and another 31 buildings are in the process of rectifying deficiencies," he added. End 7. Working groups to review academic system **************************************** The Education Commission (EC) discussed today (Monday) the approach and time-table of the review of the academic system. Speaking after the EC meeting, the Chairman, Professor Rosie Young, said, "Two working groups will be set up under the EC to conduct the review. One of them would examine pre-primary and 9-year compulsory education, while the other would examine post-compulsory (i.e. Secondary 4 to tertiary) education. "The two working groups will consider and make recommendations on various issues, which include the age of entry to the various stages of education, from pre- primary to tertiary education; the duration of each stage; the curriculum and method of assessment; and the interface between the various stages," said Professor Young. "Given the wide range of issues to be considered and the cross-sectoral impact of the deliberations, the working groups need to draw on the expertise of both local and overseas professionals. Individuals from relevant education advisory bodies and front-line educators will also be invited to join the working groups." Regarding the time-frame for the review, Professor Young said, "In the coming months, the working groups will seek the views of the education community on the various issues that are relevant to the review, with a view to developing some preliminary thoughts on the way forward before the end of this year." The Education Commission also noted the progress of the Quality Education Fund Steering Committee. Members welcomed that the first call for applications would commence soon in early March. End 8. More resources on planning, environment and lands commitments ************************************************************* The Government will allocate more resources in 1998/99 to implement its policy commitments in the areas of planning, lands and environmental protection. In terms of total public expenditure, the provision for buildings, lands and planning in 1998/99 will be increased by 9.2 per cent over the 1997/98 revised estimate to $11.91 billion and that for environmental protection by 5.1 per cent to $3.315 billion, the Secretary for Planning, Environment and Lands, Mr Bowen Leung said. Speaking at a press visit to Tseung Kwan O this (Monday) morning, Mr Leung said that the substantial level of resources provided for in the 1998/99 Draft Estimates demonstrated Government's clear commitment to press ahead with the objectives set in relation to land supply for housing and development of infrastructure in the coming year and beyond. He said that a total of 517 additional posts will be created in 1998/99, an increase of 4.5 per cent over 1997/98, to implement a number of new or improved services in various departments under his policy purview. To implement a Building Safety Inspection Scheme, 30 posts will be created in the Buildings Department for the purpose of inspecting 16,000 buildings under a seven-year programme. In addition, 17 posts will be created to strengthen the processing of building plans by extending the fast- track mechanism for plan processing to cover smaller development projects; and 10 posts for the formation of a dedicated task force to investigate and take action against potentially dangerous building canopies and appendages on the outside of buildings. "To improve fire safety in buildings, the department will provide 23 new posts to strengthen their existing work, whilst 15 new posts will also be created to step up enforcement of Dangerous Hillside Orders," Mr Leung said. "For the Lands Department, four new posts will be created for maintenance of slopes on Government land, and $21.5 million will be earmarked for the employment of consultants to undertake slope inspections and maintenance work. "In addition, we will also add 14 posts for non- development clearance in the New Territories. "The Planning Department will have 18 new posts for the purpose of implementing proposals to streamline procedures, introduce new statutory functions and specify statutory time limits for executing various functions; 13 new posts to deal with cross-border planning issues and manage strategic planning studies; and eight new posts to expedite the restructuring of old industrial areas for commercial/residential developments," he added. On conservation and country parks, he said 12 posts will be created in the Agriculture and Fisheries Department for the protection and conservation of the Mai Po and Deep Bay Ramsar sites as well as 12 posts for the management of the proposed Lung Fu Shan Country Park. "The Environmental Protection Department will have eight new posts. Three of them will be created to set up a one-stop-shop Land and Housing Supply Unit and five posts will be provided for the management of the new air pollutants monitoring stations and the territory-wide air quality modelling system," he said. In addition, 17 new posts will be created in the Drainage Services Department to provide support on drainage facilities to the development of new sites for housing and the implementation of improvements to stormwater drainage system. He added that 76 posts will be provided to support on sewage services for housing and priority railway projects and for the operation of new plants. "We will also add 45 new posts to the Civil Engineering Department, mainly for land formation for housing and for maintenance of ferry piers," he said. On capital works projects, Mr Leung noted that the Bureau will start a number of major projects in 1998/99: - sewerage improvements in North West Kowloon, involving the construction of about 21 kilometres of sewers and rectification of expedient connections, will start in April 1998 for completion in June 2003; - work on the construction of the Foothills Bypass to divert heavy goods traffic from West Tuen Mun will start in July 1998 for completion in June 2001; - South East Kowloon development: site preparation in the northern part of the Kai Tak Airport apron area will start in July 1998 to prepare for housing development by December 2001. "With regard to land revenue, we expect the land premium to be $50.4 billion in 1998/99, which is $21.5 billion (about 30 percent) less than the receipts in 1997/98," Mr Leung said. "This reflects the location, area and permitted use of the sites to be made available in the coming year and has taken account of prevailing market conditions. "On land acquisition, the Bureau expects to spend $4.092 billion in 1998/99, which is 35.6 percent more than the 1997/98 Revised Estimate as a result of the additional provision for compensation and ex-gratia allowances for land acquisition." A total of 151 new posts will be created in the Lands Department, the Planning Department and the Territory Development Department to undertake a number of new initiatives in connection with the strategic policy objective on housing. The Lands and Planning departments together will be given additional 78 new posts for planning and land acquisition and disposal work in relation to the three high priority railway projects, including the Tseung Kwan O (TKO) MTR Extension. During the press visit, the Secretary was briefed by the Acting Assistant Director of Planning, Mr P Y Tam, on the latest development in Tseung Kwan O and Area 86 where the proposed TKO MTR Extension would be located. Mr Leung said the siting of the depot for the TKO MTR Extension in Area 86 would provide the opportunity to combine railway facilities with large scale housing development project. "A planning study commissioned by the MTRC envisaged the construction of about 20,000 flats to accommodate about 50,000 people. "These are very significant proposals, particularly in relation to the Government's plans to expand TKO New Town and our commitment to increasing flat production to not less than 85,000 flats a year." Mr Leung said the findings of the study were among the issues that the Government was considering in regard to the TKO railway project. He said: "We shall be announcing a decision soon on MTRC property developments associated with the TKO Extension, including those at Area 86." End 9. TOC Education Resources Centre moves ************************************ The Target Oriented Curriculum (TOC) Education Resources Centre (Kowloon) of the Curriculum Development Institute, Education Department will move to its new site on the ground floor, 24 Tin Kwong Road, Kowloon today (Monday). The present TOC Education Resources Centre (Kowloon) on the seventh floor, To Kwa Wan Market and Government Offices, 165 Ma Tau Wai Road, To Kwa Wan will be closed. Both the TOC Education Resources Centre (Hong Kong) on the 14th floor CRE Building, 303 Hennessy Road, Hong Kong and the TOC Education Resources Centre (New Territories) at Unit 709, seventh floor, Landmark North, Sheung Shui, New Territories, will continue their service. Teachers and parents are welcome to visit the Education Resources Centres. The opening hours of all the three centres are as follows: Monday to Friday - 9 am to 5 pm Saturday - 9 am to noon Sunday and public holidays - closed The Education Resources Centres are equipped with conference rooms, multimedia facilities, TOC publications and related reference materials which include learning and assessment tasks produced by TOC Development Unit and TOC Assessment Unit. They will also provide a place for teachers to meet with each other as well as with subject inspectors to share their views and experiences. The Kowloon Centre is a convenient location where teachers can meet the subject inspectors of the TOC Section as the offices of all the TOC Units are located just above it. At present, the TOC Assessment Unit and the Teacher Training Unit are operated at 24 Tin Kwong Road, Kowloon and the TOC Development Unit and the TOC system Unit will soon join in. For enquiries concerning the TOC Education Resources Centres can be directed to our staff on 2762 7549. End 10. Three pre-sale consents issued in January ***************************************** The Lands Department issued three pre-sale consents for residential flats in uncompleted developments last month (January). These consents were for the pre-sale of 6,076 residential units in Mong Kok, Ho Man Tin and Kwai Chung. They are expected to be completed between this April and late 1999. At the end of January, 20 applications for pre-sale consents involving 21,972 residential units, and 12 for commercial developments were pending approval. The commercial developments will provide at least 647 office units, 652 car parking spaces and five kindergartens, on completion in late 1999 at the latest. Besides, two applications for consents to assign 3,384 residential units in Tsuen Wan and Tin Shui Wai were being processed. Members of the public can dial the hotline 2147 5475 to obtain details. End 11. South China cargo to boost HK port ********************************** The throughput of the Hong Kong container port is forecast to grow on average at 5.8 per cent a year in the next 10 years, and export from South China will continue to be the driving force behind the growth of the port of Hong Kong, according to the findings of the Hong Kong Port Cargo Forecasts 1997/98. The Secretary of the Port Development Board, Mr Richard Yuen, said the Port Cargo Forecasts findings showed that Hong Kong will retain its role as the main container port for import and export to the Mainland. Cargoes from South China are forecast to increase from 63 per cent of Hong Kong's total container throughput in 1996 to 76 per cent in 2016. "The Port Development Board carries out a major review of the Port Cargo Forecasts once every two years to ensure that these forecasts, which span up to 20 years ahead, are as up to date as possible. "These forecasts, which provide crucial data for determining the need for future port facilities and the provision of port-related infrastructure, are the main building blocks of the Port Development Strategy Review. "Coupled with the updated productivity levels in cargo handling, the port cargo forecasts will be translated into a long term strategy to provide port facilities to meet forecast demand," Mr Yuen explained. Findings of the latest exercise - Hong Kong Port Cargo Forecasts 1997/98 - were endorsed by the Board at its meeting last week. In more specific terms, the forecasts predict that the throughput of the Hong Kong container port will increase to 24 million TEUs (twenty-foot equivalent units) in 2006 and 33 million TEUs in 2016. The port, including container terminals, mid-stream and river trade, handled 14.5 million TEUs last year. The figures represent a projected average annual growth rate of 5.8 per cent up to 2006 and 3.1 per cent between 2007 and 2016. "The forecasts were carried out by independent consultants appointed by the Port Development Board to ensure impartiality. The major port users including port operators, shippers, consignees and manufacturers were extensively consulted during the exercise. The findings of the forecasts have been accepted by the industry as pragmatic and reasonable based on the best information available. The forecasts have taken into full account planned port developments in South China and the possibility of direct shipping link between the mainland and Taiwan", Mr Yuen said. "Currently over 90 per cent of the cargoes in South China are shipped through Hong Kong. The forecast throughput of our port will, to a large extent, be influenced by the economic performance and the choice of shippers, exporters and manufacturers in Guangdong. We have placed great emphasis on seeking their views as well as those of the port authorities in the mainland in carrying out our forecasts," he added. The forecast figures show that Hong Kong need more new terminals beyond CT9 (Container Terminal 9) to meet demand in the next 20 years. CT9, which is planned to come into operation in around 2001, will provide an additional capacity of 2.6 million TEUs on top of the combined capacity of 11.5 million TEUs now available in the container terminals in Kwai Chung. "The Government's policy is to provide new container handling facilities to match forecast growth in demand based on the advice of the Port Development Board. The forecasts give us some long term planning targets. We will monitor the actual increase in the throughput of the port in the next few years before making a decision on the timing for CT10 and other new terminals," Mr Yuen said. He noted that there have been some concerns about the impact of new port developments in South China on Hong Kong. "The forecasts, which included extensive interviews with key and experienced industry players and port operators in Hong Kong and the mainland, show that the South China cargo cake will grow sufficiently fast to support the planned expansion of the ports in the region, including Hong Kong and Shenzhen. The important point is we need to increase co-ordination on port developments in the region to avoid short term excessive competition, and we are working closely with the mainland port authorities in this respect," he said. On the possibility of further liberalisation of direct shipping link between the mainland and Taiwan, Mr Yuen said: "This will affect about 80 to 90 per cent of the cargoes (about one million TEUs) which are currently shipped between the mainland and Taiwan via Hong Kong. We have fully factored the impact in our forecasts. However, current indications are that this development will take several years. "In any case, the actual impact is likely to be much less serious as we have witnessed so far. We must not underestimate the positive side of the liberalisation, which is expected to bring more investment in the mainland and increase trade flow between the places which in turn will generate more cargoes for everyone," he added. Finally, on the possible impact of the recent financial turmoil in the region on the port cargo forecasts, Mr Yuen said: "The Hong Kong Port Cargo Forecasts 1997/98 are forecasts spanning up to 20 years ahead and the data are to be used for long-term planning in support of the Government's policy of matching supply of port facilities with demand for their use. The economy operates in cycles and short term ups and downs are inevitable. What we are looking at is the long term trend. The Port Development Board will monitor the situation closely and the forecasts will be reviewed and updated as and when necessary to take into account the latest developments." End 12. Tender for the 10th issue of 7-year Exchange Fund Notes ******************************************************* The Hong Kong Monetary Authority today (Monday) announced that the tender for the tenth issue of 7-year Exchange Fund Notes will be held on next Monday (February 23) for settlement on the following day (February 24). An amount of HK$500 million 7-year Notes will be offered. Another HK$100 million will be held as reserve by the Hong Kong Monetary Authority for supply to Market Makers in the secondary market. The Notes will mature on February 24, 2005 and will carry interest at the rate of 9.20 per cent per annum payable semi-annually in arrears. Terms and conditions of the issue are described fully in the Information Memorandum. Members of the public who wish to tender for the Notes may do so through any of the Market Makers or Recognised Dealers on the published list which can be obtained from the Hong Kong Monetary Authority at 30th floor, 3 Garden Road, Hong Kong (or telephone 2878 8150). Each tender must be for an amount of HK$50,000 or integral multiples thereof. Hong Kong Monetary Authority 16 February 1998 HONG KONG MONETARY AUTHORITY EXCHANGE FUND NOTE PROGRAMME TENDER INFORMATION ---------------------------------------------------------- Tender information for the tenth issue of 7-year Exchange Fund Notes:- Issue Number : 7502 Tender Date and Time : Monday, February 23, 1998, 9.30 am to 10.30 am Issue and Settlement Date : Tuesday, February 24, 1998 Amount on Offer : HK$500 million plus an additional HK$100 million as reserve stock for the Monetary Authority Maturity : Seven years Maturity Date : February 24, 2005 Interest Rate : 9.20% per annum payable semi annually in arrears Interest Payment Dates : 24 Aug 1998, 24 Feb 1999, 24 Aug 1999, 24 Feb 2000, 24 Aug 2000, 26 Feb 2001, 24 Aug 2001, 25 Feb 2002, 26 Aug 2002, 24 Feb 2003, 25 Aug 2003, 24 Feb 2004, 24 Aug 2004, 24 Feb 2005 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 Recognised Dealers End 13. Domestic exports statistics classified by industrial origin *********************************************************** In 1997, the value of domestic exports classified to the four major industries: textiles; wearing apparel; machinery, equipment, apparatus, parts and components; and consumer electrical and electronic products together accounted for 70% of Hong Kong's total domestic exports of manufactured goods, according to statistics released today (Monday) by the Census and Statistics Department. In 1997, the value of domestic exports classified to the machinery, equipment, apparatus, parts and components industry increased by about $3 billion or 8% over a year earlier to $39.6 billion; and those to the textiles industry increased by about $2.6 billion or 6% to $45.9 billion. However, the value of domestic exports classified to the consumer electrical and electronic products industry decreased by about $2.4 billion or 9% to $23.6 billion; and those to the wearing apparel industry decreased by about $0.9 billion or 2% to $39.1 billion. As for the value of domestic exports classified to the other industries which took up a relatively smaller share in total domestic exports, marked increases were registered for the petroleum and coal products industry (+$525 million or 19 times to $553 million), followed by the food industry (+$376 million or 13% to $3,294 million) and the rubber products industry (+$11 million or 18% to $74 million). On the other hand, decreases were recorded for the basic metals and fabricated metal products industry (-$881 million or -10% to $8,162 million); the leather and leather products industry (-$461 million or -33% to $923 million) and the transport equipment industry (-$59 million or 42% to $82 million). A government spokesman pointed out that while domestic exports recorded virtually no change in value in 1997, there was likely to be an increase of about 2% in real terms after allowing for the decrease in domestic exports prices. The above statistics of domestic exports classified by industrial origin are derived by re-grouping the merchandise export items originally grouped under the external trade classification system according to the industries in which these merchandise items are normally produced. Transactions in gold and specie are excluded. The industrial classification used is the Hong Kong Standard Industrial Classification (HSIC). The HSIC is to be distinguished from the United Nations Standard International Trade Classification (SITC) used in the regular trade statistics reports. In comparison, the HSIC is more related to production processes whereas the SITC is more geared to end uses of products. Caution should be taken when referring to these domestic export statistics classified by industrial origin. There may be several intermediate processing stages in the production of certain merchandise export items. In compiling the above statistics, the total value of such an item has however been wholly related to the industry in which the item is finally produced. The above domestic export statistics of a particular industry may include products which are secondary products by establishments of other industries. End 14. Govt subvention granted to drug treatment agencies ************************************************** With the endorsement of the Subventions and Lotteries Fund Advisory Committee at its meeting held today (Monday), the Government granted $16.12 million under the Secretary for Security's programme area to subvent the services provided by four non-medical voluntary drug treatment and rehabilitation agencies for the 1998/99 financial year. The four agencies are the Barnabas Charitable Service Association, the Christian New Being Fellowship, the Finish Missionary Service Ling Oi Youth Centre and the Operation Dawn. These agencies will also be granted a total subvention of $1.26 million to cover the month of March of the 1997/98 financial year. "The Government has all along been providing assistance and support to the non-medical voluntary drug treatment and rehabilitation agencies in various ways, such as the provision of premises at nominal rent, rates relief, the payment of Comprehensive Social Security Assistance to eligible clients of residential programmes to cover charges for food and accommodation, and a monthly block grant to enable them to employ teachers and provide education to clients undergoing residential programmes," said a spokesman for the Narcotics Division of the Government Secretariat. "In order to assist their long-term development, the Gvernment in December 1996 commissioned the Chinese University of Hong Kong to carry out an evaluation study of the services provided by non-medical drug treatment and rehabilitation agencies with a view to including them in the subvention system. The study also aimed to identify areas for these agencies to further strengthen and improve their service. "Subsequently, seven non-medical drug treatment and rehabilitation agencies responded to the Government's invitation to join the study. The study was completed on schedule in December 1997." Today, the Subventions and Lotteries Fund Advisory Committee endorsed the findings of the study, which had been presented to the Action Committee Against Narcotics for consideration in December 1997. "Both the committees are pleased to know that the evaluation study has found the drug treatment and rehabilitation programmes provided by five of the seven participating agencies effective in rehabilitating drug abusers and improving their social functioning as well as psychological well-being," the spokesman said. Findings of the evaluation study pointed out that the drug treatment and rehabilitation programmes provided by these five agencies enabled their clients to rehabilitate from drug addiction and the improvements continued even after the rehabilitated clients were transferred to half - way houses. As regards areas of improvement, the study found that the environment in which these agencies are providing services is mostly sub-standard and that appropriate medical care may not be available in case of illness or emergency during detoxification. Members of the two Committees also noted that evaluation cannot be carried out on two agencies which have not been able to provide adequate information for the study. "With positive findings on the services provided by the five agencies whose services have been evaluated effective, the Government has invited them to submit applications to the Subventions and Lotteries Fund Advisory Committee for subvention consideration today. One of them, the St Stephen's Society, has decided not to apply for subvention, having considered its own source of funding," the spokesman said. "With government subvention, the agencies may improve their services, work therapy and aftercare for rehabilitating drug abusers. They may also better utilise their existing capacities to serve drug abusers. All these are in line with the Government's objective to assist these agencies in their long-term development. "They are also welcomed to apply to the Subventions and Lotteries Advisory Committee for upgrading of their accommodation to improve the environment for provision of services. In the meantime, the Government will continue discussion with the agencies on how to achieve the improvements needed in their services as identified in the evaluation study," the spokesman said. End 15. Update on avian flu ******************* The Department of Health (DH) announced today (Monday) that there were no new cases 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 February 10. End 16. Water cut in Yuen Long and Sheung Shui ************************************** Fresh and flushing water supply to some premises in Yuen Long and Sheung Shui will be suspended between 11 pm on February 19 (Thursday) to 6 am the following day for waste detection work on watermains. In Yuen Long, the suspension will affect all premises along both sides of Tong Yan San Tsuen Road, Ma Fung Ling Road, Ping Shan Lane, Ping Fuk Lane and Sha Tsang Road. In Sheung Shui, the suspension will affect all premises in the area bounded by San Fung Avenue, Lung Sum Avenue, Jockey Club Road, San Shing Avenue and Fu Hing Street, including Shek Wu Hui Market Bazaar. End 17. Water storage figure ******************** Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 79.6 per cent of capacity or 466.411 million cubic metres. This time last year the reservoirs contained 461.367 million cubic metres of water, representing 78.7 per cent of capacity. End
