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




Friday, February 20, 1998


CONTENTS
========
1.  Transcript of FS's media session
2.  Government's response to Moody's revised rating
3.  Proposals on Profits Tax Review explained
4.  More resources to enhance vocational training
5.  Chief Justice returns from Beijing
6.  Azalea open days at Government House
7.  Round up on avian flu (February 20)
8.  Attachment of Income Order Rules gazetted
9.  Order to specify restricted area at new airport
10. Licence for international calling card service cancelled
11. Rules governing child abduction and custody come into
force
12. Human organ transplant laws to be effective on April 1
13. New anti-smoking measures to take place in batches
14. Analysis of HK's re-export trade statistics in 1997
15. Value of manufacturers' orders-on-hand in December 1997
16. Tenders for ferry licence invited
17. Enactment of 12 maritime subsidiary legislation gazetted
18. Regulation to tighten diesel vehicles emission standards
19. Tai Po sewerage project approved
20. Town Planning Board to review Shek Kip Mei OZP
21. ED recruits evening part-time lecturers


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

     Following is a transcript of the media session by the
Financial Secretary, Mr Donald Tsang, after briefing
members of the Provisional Legislative Council this
(Friday) morning:

Mr Tsang: Well, I have just heard about the credit rating
given by Moody's to Hong Kong SAR and to Mainland China.
This is not the first time that Moody's has given rating
which we are not entirely happy with.  Particularly on
this occasion, I can say, I disagree entirely with the
conclusions of Moody's.  They seemed to have ignored that
Hong Kong SAR is a distinctly different economic setting
as from Mainland China.  To link the two together,
considering them as one economic entity is unfair, unreal
and is improper.  It does not reflect the constitutional
position of Hong Kong.  It does not reflect that we have
an independent economy that we have our own currency, and
it does not reflect also our national policy as regards
Hong Kong.

Reporter: Are you angry, Mr Tsang?

Mr Tsang: Well I do not say I am angry, but it is a very
reputable credit rating agency.  But I can say that there
are other equally credible credit rating agencies who come
up with completely different conclusion as regards Hong
Kong.  If you read it against what the International
Monetary Fund has recently appraised Hong Kong which is
almost a full-mark report on Hong Kong, how we stood up
well to the currency crises in Asia.  This seems to
contrast very sharply against the conclusions of Moody's
who seems that we have to be included in the same
broadbrush of all the other countries affected by the
currency crises.  So I do not think it is a very fair
assessment, but I am sure that people who understand Hong
Kong could equally make a very sensible distinction.

     Another aspect which has been ignored by the Moody's
assessment is that it seems to have ignored that China is
a very big country, a very big nation, with different
pockets of different economic performance.  The RMB is
extremely a strong currency and it has shown its
competitiveness throughout the last few years and
continues to be very competitive.  And Mainland China is
on the growth path of eight per cent real terms, and I do
not think that it is unrealistic, and everybody agrees
that it is quite a realistic growth rate, and against that
I do not see why the rating of the Mainland should be
discounted again.  Also China is a very competitive
economy because we are still a poor nation.  All we need
to do, all the Mainland authorities need to do, is to take
the manufacturing capacity a little bit inland or to the
west.  Then you would have a completely different wage
setting.  Then our products will be even more competitive
than it is now.  That simple fact seemed to have been
ignored by Moody's. So as I said, I do not agree with the
assessment.

End


2.  Government's response to Moody's revised rating
    ***********************************************

     In response to media enquiries on Moody's revised
credit ratings for Hong Kong, the Financial Secretary, Mr
Donald Tsang, said today (Friday) that he could not
understand the basis for the revisions.

     Speaking at a media session after briefing the
Provisional Legislative Council on his Budget, Mr Tsang
said: "Hong Kong has no external debts, has a huge
reserves and is continuing its prudent fiscal policy.  I
am very surprised that Moody's should find Hong Kong's
willingness and ability to repay have deteriorated.

     "Moody's assessment of Hong Kong is contrary to the
resounding endorsement the IMF gave Hong Kong's overall
policy framework in the statement it issued earlier this
week relating to its annual Article IV consultation with
us."

     A Government spokesman added: "We do not agree with
Moody's that Hong Kong's short-term ratings and long-term
outlook should be downgraded.  With its strong economic
fundamentals, Hong Kong has in fact shown its resilience
in the Asian financial turmoil.

     "We are confident that the Mainland's economy will
continue to grow robustly and with little spill-over
effect from the external financial situation.  The top
leadership's commitment to not devaluating the RMB is a
strong indication of the confidence in the continued
success of the Mainland's reform and modernisation drive,
which will ultimately benefit the HKSAR.

     "We dispute strongly Moody's practice to cap Hong
Kong's ratings by its ratings for the Mainland of China.
The SAR and the Mainland of China are two separate
economic entities.

      "In fact, the international community has witnessed
the successful implementation of the "one country, two
systems" principle.  Moody's should recognise that the
HKSAR and the Mainland are two distinct economies, with
very close relationship, and with different credit
strengths.  We note in particular that other agencies have
mostly practised the "one country, two ratings" principle.

     The spokesman said that people who understood Hong
Kong would be able to make a very sensible distinction.

     "Moody's ratings changes have certainly not taken
into account the Budget announced by the Financial
Secretary on Wednesday."

End


3.  Proposals on Profits Tax Review explained
    *****************************************

     The Secretary for the Treasury, Mr Kwong Ki-chi,
today (Friday) explained details of the proposals on the
Profits Tax Review.

     At a press conference, Mr Kwong said the Financial
Secretary, Mr Donald Tsang, undertook in the 1997/98
Budget to comprehensively review profits tax in order to
make Hong Kong's taxation system and business environment
more competitive.

     A working group on profits tax review was set up and
a consultation document was issued on July 29, 1997.

     During the consultation period which ended on
September 6, 1997, a total of 74 written submissions were
received.  Many views were expressed through the media.

     Mr Kwong said in the 1998/99 Budget, the Financial
Secretary proposed to reduce corporate profits tax rate
from 16.5 per cent to 16 per cent.

     The other proposals include:

     *  to allow an immediate 100 per cent write-off for
        expenditure on plant and machinery specifically
        related to manufacturing, and on computer hardware
        and software;

     *  to expand the scope of tax deduction for
        expenditure on scientific research to cover
        capital expenditure incurred on market research,
        feasibility studies and other research activities
        related to business and management sciences;

     *  to double the annual depreciation allowance for
        commercial buildings from two per cent to four per
        cent;

     *  to extend the tax concession for hotel
        refurbishment and renovation to all other business
        sectors;

     *  to provide a concessionary tax rate at 50 per cent
        of normal profits tax rate for the offshore
        business of professional reinsurance companies
        authorised in Hong Kong;

     *  to update the legislation on tax exemption in
        respect of income received from fund management;

     *  to continue to negotiate double taxation relief
        arrangements on airline income with  Hong Kong's
        aviation partners;

     *  to amend the tax legislation to provide reciprocal
        exemption of taxation on shipping; and

     *  to enter into negotiation of double taxation
        relief arrangements on shipping with other places.

     "We will continue to issue practice notes for
clarification of the operation of the taxation system, and
provide an advance ruling service for the business
community on source of profits on a full cost recovery
basis," Mr Kwong said.

     A simple guide on the operation of the territorial
source principle and a booklet to publicise the advantages
of the profits tax regime will be published.

     "The total cost of the profits tax review package to
the revenue is $1.6 billion in 1998/99 and $19.9 billion
up to 2001/02," Mr Kwong added.

     On the arrangement between the Mainland and Hong Kong
for the avoidance of double taxation on income, Mr Kwong
said: "We have made an arrangement with the tax
authorities in the Central People's Government for
avoidance of double taxation between the Mainland and Hong
Kong."

     "The arrangement covers shipping, aviation, land
transportation, permanent establishments, services and
personal taxation, etc.  The arrangement is set out in a
Memorandum signed in Hong Kong on February 11, 1998."

     Mr Kwong said the terms of the arrangement are
consistent with the provisions of double taxation relief
agreements made between the Central People's Government
and other governments, and the provisions in the OECD
double taxation relief model.

     "The arrangement reached will ease the concern and
lower the tax liability of Hong Kong residents working and
enterprises operating on the Mainland and will establish a
sound foundation for future cooperation between the
Mainland and Hong Kong on economy and trade."

     He said the Government would also explore with the
government of a few countries the negotiation of
comprehensive double taxation agreements, where this could
be in Hong Kong's overall interest.

End


4.  More resources to enhance vocational training
    *********************************************

     The Government will provide sufficient resources for
various vocational training and retraining bodies to
conduct training courses in the year 1998/99, so that more
young people and the unemployed can re-enter the labour
market.

     At a press conference on appropriations for
employment and labour in the 1998/99 Budget today
(Friday), the Secretary for Education and Manpower, Mr
Joseph W P Wong, said that $80 million would be granted to
the Construction Industry Training Authority (CITA) to
enable it to expand substantially its training capacity
and to organise more training courses in the next two
years.

     Mr Wong noted that the CITA would offer an additional
1,410 training places each year, an increase of 50 per
cent over this year.  It will also offer Intermediate
Trade Test for about 10,000 workers each year, and provide
refresher/remedial courses.  The estimated total
expenditure for CITA in 1998/99 will be $275.75 million.

     Government subventions for the Vocational Training
Council in the coming year will be $2.089 billion and the
Council's estimated total expenditure is $2.47 billion.

     The Employees Retraining Board will also have ample
resources to enhance its training capacity in the coming
year.  Its projected total expenditure in 1997/98 is $216
million, while the cash balance of the Employees
Retraining Fund remains at $666 million.

     Mr Wong pointed out that the Financial Secretary had
proposed in his Budget Speech to increase the tax
allowance for self-education to $30,000, representing a 50
per cent increase.  This will encourage more employed
people to pursue self-education, in order to better
equipped themselves for other jobs.

     Meanwhile, the Government will also allocate more
resources and take various measures to further strengthen
safety and health at work.  Mr Wong explained that a one-
off injection of $38 million would be made to the
Occupational Safety and Health Council (OSHC) for the
purchase of permanent headquarters cum training centre to
facilitate its expansion programme.  Application for fund
will be submitted to the Finance Committee of the
Provisional Legislative Council in March.

     In addition, the Employees' Compensation Insurance
Levy has been adjusted from one per cent to two per cent
from January 1, 1998, doubling the OSHC's annual income to
over $50 million.  With the capital injection from the
Government and the levy adjustment, the Council will have
adequate resources to extend its services in education,
training, publicity and research.  It will organise 350
various training courses in 1998/99, an increase of 75 per
cent over the current year.

     To implement the Occupational Safety and Health
Ordinance which came into effect on May 23, 1997, $40
million will be allocated to the Labour Department to
create 75 new posts.

     In order to strengthen safety and health at work, the
Government will put forward the following legislative
proposals in the 1998/99 session:

     *  Mandatory safety training for those working in the
        construction and container handling industries;

     *  Implementation of safety management system in
        selected industrial undertakings;

     *  Better protection for those working in confined
        spaces and at heights; and

     *  Medical examinations for those required to handle
        hazardous substances and agents at work.

End


5.  Chief Justice returns from Beijing
    **************************************

     The Hon Mr Justice Andrew Li, the Chief Justice of
the Court of Final Appeal, returned to Hong Kong this
afternoon (Friday) after a four-day visit to Beijing.

     During his stay in Beijing, the Chief Justice met
Vice-Premier Mr Qian Qichen, President of the Supreme
People's Court Mr Ren Jianxin and the Director of the
State Council's Hong Kong and Macau Affairs Office, Mr
Liao Hui.  The Chief Justice also visited the Ministry of
Justice, the Procuratorate and the National People's
Congress.

     "This is a courtesy visit and we have received clear
messages from the Chinese leaders," the Chief Justice said
upon his return.

     "The Chinese leaders affirmed judicial independence
as a cornerstone in maintaining Hong Kong's prosperity and
stability.

     "They are pleased to see that the transition to the
new order has been a smooth one for the Judiciary, and
that the administration of justice by the courts has
continued as before.

     "They are also pleased to see that the Hong Kong
Special Administrative Region, for the first time, has its
own final appellate court, and that the Court of Final
Appeal has been established and is functioning.

     "They stress that the people of Hong Kong should make
every effort in building an international reputation for
the Court of Final Appeal.

     "Although the judicial systems in the mainland and
Hong Kong are different, the Chinese leaders encourage the
strengthening of exchanges between the judges in the
Mainland and Hong Kong," Mr Li said.

     The Chief Justice said that his visit marked the
first step of exchanges between judges in the mainland and
Hong Kong.  He believed that under the principle of "one
country, two systems", Hong Kong's judicial system and its
spirit will be maintained.

End


6.  Azalea open days at Government House
    ************************************

     The gardens of Government House will be open on
February 28 and March 1 for members of the public to enjoy
the azaleas at their best, a government spokesman
announced today (Friday).

     A special open day has also been arranged on February
27 for about 400 elderly people.  The event will be
organised by the Social Welfare Department with the
support of a number of homes for the aged.

     "This is the first open day since the establishment
of the Hong Kong Special Administrative Region," the
spokesman said.

     "This is also the first of four occasions for opening
Government House to the public this year.  The dates and
details of the other three occasions will be announced in
due course," he added.

     The Government House gardens will be open from 10 am
to 5 pm on February 28 and March 1.  All visitors should
enter Government House by the east gate, located on Upper
Albert Road facing the US Consulate, and leave by the main
gate.

     As a large turnout is anticipated, visitors are
advised not to travel by private car or taxi.  If they do
come by taxi or car, they are advised not to alight on
Upper Albert Road.  Depending on the length of the queue,
the Police may announce a cut-off time for lining up
outside Government House to ensure that everybody in the
queue can get into the gardens in time.

     The open day will be cancelled if the No. 8 typhoon
signal is hoisted or if the red or black rainstorm warning
is on.  Members of the public are advised to tune in to
the radio in case of bad weather.

End


7.  Round up on avian flu (February 20)
    ***********************************

     There were no new cases of influenza A (H5N1) in Hong
Kong in the last few weeks since the slaughter of chickens
between December 29 and 31, 1997.

     A spokesman for the Department of Health said today
(Friday) that the onset date of illness of the last
confirmed case was December 28, 1997.

     The total number of cases stands at 18 confirmed
cases.  Two patients are still under treatment in
hospital.  They are recovering and in stable conditions.
Ten other patients had fully recovered and been
discharged. Six people had died of the disease.

     Following is the latest conditions of the 18
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 stable

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: Died

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 stable

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

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

End


8.  Attachment of Income Order Rules gazetted
    *****************************************

     The Attachment of Income Order Rules (AIOR), which
was made by the Chief Justice to prescribe the court
procedures concerning the Attachment of Income Order
(AIO), was gazetted today (Friday).

     A spokesman for the Home Affairs Bureau said that
with a view to addressing the difficulties encountered by
maintenance payees in enforcing maintenance orders, the
Marriage and Children (Miscellaneous Amendments) Ordinance
1997 (the Ordinance) was enacted in June 1997.  The
Ordinance amends the Guardianship of Minors Ordinance,
Separation and Maintenance Orders Ordinance and the
Matrimonial Proceedings and Property Ordinance.

     The amendments, among other things, give the court
power to order the attachment of a maintenance payer's
income where it is satisfied that he/she has an attachable
income but has defaulted in maintenance payment without
reasonable excuse.  "Income" is not confined to wages.  It
also includes, for example, rentals from property and
dividends from companies.

     The spokesman said: "The AIOR gazetted today provide
that after a maintenance payee has filed an application
for an AIO, the maintenance payer has to submit to the
court a statement of means which details his/her income
and expenditure.  He/she has to give also particulars of
all of his/her income sources (e.g. the employer paying
wages, the tenant paying rents or the company paying
dividends to the maintenance payer).  The income sources
will then be asked by the court to verify the relevant
statement of means.  The court will consider all available
information before deciding whether to make an AIO.

     "Where an AIO has been made by the court, the income
source has to deduct the amount specified in the AIO from
the income due to the maintenance payer and pay it direct
to the maintenance payee.

     "A maintenance payer who knowingly provides false
information to the court or who fails without reasonable
excuse to comply with a court order commits an offence
punishable by a fine of $5,000 and imprisonment for one
month.  An income source who commits a similar offence is
liable to a fine of $5,000."

     The AIOR will be tabled in the Provisional
Legislative Council next Wednesday (February 25).
According to the spokesman, the Administration will bring
the AIOR into operation as soon as they have gone through
negative vetting by the Provisional Legislative Council
i.e. in late March or early April 1998.

End


9.  Order to specify restricted area at new airport
    ***********************************************

     The Director of Civil Aviation has made an order to
specify the restricted area at the new airport at Chek Lap
Kok.

     The Airport Authority Ordinance (Map of Restricted
Area) Order which was published in today's (Friday)
Government Gazette is to demarcate the restricted area for
the implementation of the Airport Authority Bylaw.

     Maps delineating the area are available for public
inspection at the office of the Airport Authority at Kwo
Lo Wan, Chek Lap Kok.

End


10. Licence for international calling card service cancelled
    ********************************************************

     The Telecommunications Authority today (Friday)
decided to cancel, with effect from 0001 hours on February
28 (Saturday), 1998, the public non-exclusive
telecommunications service (PNETS) licence granted to
Uniglobe Telecom (Far East) Limited (Uniglobe) for the
provision of international calling card service in Hong
Kong.

     The decision to cancel Uniglobe's PNETS licence was
made by the Telecommunications Authority pursuant to
section 34(4) of the Telecommunication Ordinance (Chapter
106, Laws of Hong Kong), for the reason that Uniglobe was
convicted twice of offences contravening section 8(1)(a)
and 8(1)(b) of the Telecommunication Ordinance. The first
one at the Fanling Magistracy on September 18, 1997 and
the second at the District Court on November 21, 1997.

     The offences were related to the maintenance of means
of telecommunication and the use of radiocommunication
apparatus without a licence.

     "In the cases for which Uniglobe was prosecuted,
Uniglobe had delivered customer traffic using illegal
routing to places outside Hong Kong in contravention of
the licence conditions.  This has the effect of
prejudicing fair competition in the market.  To tolerate
such activities will be unfair to operators who abide by
the law," said a spokesman for the Office of the
Telecommunications Authority (OFTA).

     "OFTA will continue to monitor the market and take
stern actions against operators who are in breach of the
law in the operation.

     "The cancellation does not affect consumer interest
as there are plenty of choices for consumers in the market
for calling card and callback services," the spokesman
added.

     Following the cancellation of the PNETS licence by
the Telecommunications Authority, Uniglobe must stop the
operation of its international calling card service on or
before 0001 hours on February 28 (Saturday), 1998.

End


11. Rules governing child abduction and custody come into
force
    *********************************************************

     The rules of the Supreme Court (Amendment) Rules 1998
have come into operation upon publication in the Gazette
today (Friday).

     The rules give effect to the Child Abduction and
Custody Ordinance to implement in Hong Kong the Convention
on the Civil Aspects of International Child Abduction.

     They also specify the procedures for filing an
application to the court for the return of a child
wrongfully removed or retained in violation of custody
rights to their place of habitual residence.

     In addition, they provide for an application for
interim directions from the court and stipulate the
procedures for obtaining an authenticated copy of a court
decision relating to the custody of a child.

     The convention which was signed in the Hague in
October 1980, is now in force in about 40 countries
including Australia, Canada, New Zealand, the United
Kingdom and the United States.  It provides an effective
international mechanism for ensuring the swift return of
children wrongfully removed or retained in violation of
custody rights.

End


12. Human organ transplant laws to be effective on April 1
    ******************************************************

     In two separate notices published in the Gazette
today (Friday), the Chief Executive and the Secretary for
Health and Welfare appointed April 1, 1998 as the date
when the Human Organ Transplant Ordinance and the Human
Organ Transplant Regulation will come into force.

     A spokesman for the Human Organ Transplant Board
said: "When the Ordinance comes into effect on April 1,
commercial dealings in human organs intended for
transplant will be an offence.

     "The law also requires the responsible medical
practitioner to obtain prior approval of the Board for any
human organ transplant involving a live donor, unless the
donor is related to the recipient either genetically or by
marriage which has subsisted for not less than three
years."

     The spokesman said in order to process applications
for transplant promptly, the Board would accept and
process applications that were submitted during and
outside office hours.

     "Moreover, prescribed certificate/information must be
submitted to the Board before any transplant involving the
use of imported organs can take place.  Information on
human organ removals, transplants and disposals, whether
the organs are obtained locally or imported, must be
submitted to the Board in the appropriate statutory forms
within 30 days after the relevant events have taken
place," the spokesman said.

     The Human Organ Transplant Regulation sets out the
means by which genetic relationship between an organ donor
and a recipient may be established; specifies the
information on human organ transplants to be submitted to
the Board and the person who must submit it; and specifies
the additional information that must be supplied for
imported organs.

     Administrative guidelines have been distributed to
private and public hospitals, as well as relevant medical
professionals and organisations to inform them of the
procedures required by the legislation.  Leaflets
providing general information on the Ordinance are
available to the public at hospitals, general out-patient
clinics and District Offices.

     Copies of the guidelines and leaflets can also be
obtained from the Human Organ Transplant Board Secretariat
on the second floor, Shun Feng International Centre, 182
Queen's Road East, Wan Chai, Hong Kong. For enquiries,
please call 2527 8433.

End


13. New anti-smoking measures to take place in batches
    **************************************************

     The Government announces that certain new anti-
smoking measures provided in the Smoking (Public
Health)(Amendment) Ordinance 1997 will take place in
batches on April 1 and July 1, 1998 respectively.

     The commencement dates of these new measures are
published in the gazette today (Friday).  These measures
include prohibition of sale of tobacco products through
vending machines from April 1.

     "Although sale of tobacco products through vending
machines is not common in Hong Kong, we are taking
preventive measures against it so that people cannot gain
easy access to tobacco products through such kind of
machines," a spokesman for the Health and Welfare Bureau
said.

     "From April 1, it is also illegal for anyone to place
a tobacco advertisement on the Internet," he added.

     "It is essential that users of the Internet be aware
of this new law.  In this connection, we will contact
various Internet Services Providers in Hong Kong and
through them, encourage self-discipline among their
clients."

     In addition, the management of all restaurants,
schools, colleges, universities and the Hong Kong Academy
for Performing Arts can designate any area of the premises
concerned as no smoking areas, starting from April 1.

     The indoor areas open to the public within all
supermarkets, banks, department stores and shopping malls,
except the restaurant within a department store or a
shopping mall, will become designated no smoking areas
with effect from July 1.

     The prohibition of any person to give tobacco
products to a person of any age for the purposes of
promotion or advertisement will also become effective on
July 1.

End


14. Analysis of HK's re-export trade statistics in 1997
    ***************************************************

     Re-exports accounted for 85 per cent of the value of
total exports and 41 per cent of the total value of
external trade of Hong Kong in 1997; while in 1996, the
corresponding shares were broadly similar, at 85 per cent
and 40 per cent respectively.

     These figures, re-affirming the importance of re-
export trade, are amongst the detailed re-export
statistics released by the Census and Statistics
Department today (Friday).

     The mainland remained the largest partner for Hong
Kong's re-export trade.  As a source, re-exports
originating from the mainland accounted for 58 per cent of
the value of re-exports of Hong Kong in  1997.  As a
destination, the mainland's share was 36 per cent.

     Taking the two directions of trade flow as a whole
but counting only once the value of merchandises
originating from and re-exported back to the mainland,
about 90 per cent (or $1,119.1 billion) of the $1,244.5
billion of total re-exports going through Hong Kong in
1997 were related to the mainland.

     It is noted that much of the re-export trade
involving the mainland is related to outward processing,
as raw materials and semi-manufactured goods are exported
to the mainland for processing, with the final products
subsequently returned to Hong Kong and re-exported to
overseas markets.

     Other main origins of Hong Kong's re-exports in 1997
included Japan (accounting for 11 per cent), Taiwan (6.7
per cent), the United States (5.0 per cent) and South
Korea (3.2 per cent).

     The other main destinations included the United
States (accounting for 21 per cent), Japan (6.2 per cent),
Germany (3.7 per cent) and the United Kingdom (3.1 per
cent).

     Table 1 shows the value of re-exports from the 10
main origins in 1997 and their changes compared with 1996.

     Comparing 1997 with 1996, increases of various
magnitudes were recorded in the value of re-exports from
all main origins: Malaysia (+17 per cent), Italy (+10 per
cent), Singapore (+9.4 per cent), the mainland (+5.8 per
cent), South Korea (+4.3 per cent), Japan (+3.5 per cent),
the United Kingdom (+2.2 per cent), Taiwan (+1.4 per
cent), Germany (+1.0 per cent) and the United States (+0.7
per cent).

     Of the value of re-exports originating from the
mainland in 1997, 33 per cent went to the United States,
9.5 per cent to Japan and 6.0 per cent to Germany.

     For goods of Japan origin, 74 per cent of the value
of re-exports through Hong Kong in 1997 went to the
mainland, 4.2 per cent to the United States and 2.7 per
cent to South Korea.

     For re-exports originating from Taiwan, an
overwhelming proportion (91 per cent) of the value in 1997
went to the mainland.

     As regards re-exports originating from the United
States, 74 per cent of the value in 1997 were shipped to
the mainland, 4.2 per cent to Taiwan and 3.1 per cent to
South Korea.

     Table 2 shows the value of re-exports to the 10 main
destinations in 1997 and their changes compared with 1996.

     Comparing 1997 with 1996, increases of various
magnitudes were recorded in the value of re-exports to
Taiwan (+11 per cent), the Netherlands (+8.7 per cent),
the United Kingdom (+8.5 per cent), the United States
(+7.9 per cent), France (+7.8 per cent), the mainland
(+6.3 per cent) and Singapore (+3.5 per cent).

     However, decreases of 3.9 per cent, 3.0 per cent and
1.9 per cent were recorded in the value of re-exports to
South Korea, Japan and Germany respectively.

     Analysed by commodity group, increases in the value
of re-exports to the mainland were recorded for electrical
machinery, apparatus and appliances, and electrical parts
thereof (by $8.2 billion or 22 per cent); office machines
and automatic data processing machines (by $4.8 billion or
27 per cent); and textiles (by $3.1 billion or 4.4 per
cent).

     However, decreases in the value of re-exports to the
mainland were recorded for general industrial machinery
and equipment and machine parts (by $2.9 billion or 17 per
cent); and tobacco and tobacco manufactures (by $1.9
billion or 44 per cent).

     As regards re-exports to the United States, increases
in value were recorded for miscellaneous manufactured
articles consisting mainly of baby carriages, toys, games
and sporting goods (by $6.5 billion or 10 per cent);
office machines and automatic data processing machines (by
$3.7 billion or 26 per cent); and clothing (by $3.3
billion or 14 per cent).

     However, decreases in the value of re-exports to the
United States were recorded for footwear (by $1.0 billion
or 2.9 per cent); and prefabricated buildings, sanitary,
plumbing, heating and lighting fixtures and fittings (by
$425 million or 9.6 per cent).

     Detailed statistics of Hong Kong's re-export trade in
1997 are published in the December 1997 issue of the "Hong
Kong External Trade" report which will be available for
sale at $111 per copy around next Tuesday (February 24).

     The report can be purchased at either the Government
Publications Sales Centre on the Ground Floor, Low Block,
Queensway Government Offices, 66 Queensway, Hong Kong; or
the Publications Unit of the Census and Statistics
Department on the 19th Floor, Wanchai Tower, 12 Harbour
Road, Wan Chai, Hong Kong.

     Enquiries regarding subscription to this report may
be directed to the Publications (Sales) Office of the
Information Services Department on the 28th Floor, Siu On
Centre, 188 Lockhart Road, Wanchai, Hong Kong (Tel. No.
2598 8194).

     For enquiries on trade statistics, please contact the
Census and Statistics Department (Tel. No. 2582 4915).
End


15. Value of manufacturers' orders-on-hand in December 1997
    *******************************************************

     The value of manufacturers' orders-on-hand for local
production in December 1997 decreased by 7 per cent over a
year earlier, according to the provisional results of a
monthly survey released today (Friday) by the Census and
Statistics Department.

     Comparing December 1997 with December 1996, decreases
in the value of orders were recorded in the electrical
products industry (-16 per cent), the plastic products
industry (-15 per cent), the fabricated metal products
industry (-12 per cent), the electronic products industry
(-8 per cent), the wearing apparel industry (-6 per cent)
and the textiles industry (-3 per cent).

     However, increase in the value of orders was recorded
in the printing & publishing industry (+12 per cent).

     Compared with November 1997, and bearing in mind that
this comparison may be affected by seasonal factors, the
value of manufacturers' orders-on-hand in December 1997
decreased by 1 per cent.

     Commenting on the latest statistics on orders-on-hand
for local production, a Government Secretariat spokesman
said that the decline in December 1997 was due in part to
the diversion of orders received to production in the
Mainland by a few major establishments in the electronic
products industry.  Nevertheless, the pace of decline in
orders-on-hand for the manufacturing industry as a whole
was slower in December 1997 than in the preceding two
months.

     The Monthly Survey of Orders-on-hand covers a sample
of some 300 manufacturing firms engaging 50 or more
workers.

     Manufacturers' orders-on-hand refer to orders and
parts of orders received earlier by manufacturers for
local production which remain unfilled as at the end of
the reference month.  Orders received by traders not
engaged in production are included if such orders are
further placed to manufacturers for production locally.
However, orders placed to manufacturing firms for
production in the Mainland and other places outside Hong
Kong are not included in this series of orders-on-hand
statistics.

     A spokesman of the Census and Statistics Department
pointed out that caution should be exercised in
interpreting the manufacturers' orders-on-hand figures in
a single month.  Instead, the trend movement of the series
as displayed over a wider span of time points should be
looked at.

     The survey report for December 1997, at $6 a copy, is
now available for sale at the Government Publications
Centre, Queensway Government Offices, Low Block, Ground
Floor, Queensway, and at the Census and Statistics
Department Publications Unit, 19th Floor, Wanchai Tower,
12 Harbour Road, Wan Chai.

     Enquiries about the survey results may be made to the
Industrial Production Statistics Section of the Census and
Statistics Department at 2805 6441.

     The following table shows the year-on-year percentage
changes in the value of orders-on-hand in different
manufacturing industries.

                          Percentage changes in the value
                          of orders-on-hand in :


                       November 1997         December 1997
                  over November 1996    over December 1996
                        (Revised)            (Provisional)

All industries covered           -9                   -7
in the survey

    Wearing apparel              -4                   -6
    Textiles                     -5                   -3
    Electronic products         -16                   -8
    Electrical products         -14                  -16
    Fabricated metal products    -6                  -12
    Plastic products            -14                  -15
    Printing and publishing     +14                  +12

End


16. Tenders for ferry licence invited
    *********************************

     The Transport Department (TD) is now inviting tenders
for the licence to operate ferry service among Tsuen Wan,
Tsing Yi and Central.

     Interested parties may, as from noon on next Monday
(February 23), obtain the tender document and further
particulars at the department's Ferry and Paratransit
Branch, Room 4015, Immigration Tower, 7 Gloucester Road,
Wan Chai during office hours.

     Tenders, in sealed envelope and marked "Application
for Ferry Service Licence in respect of Tendered Ferry
Route gazetted on 20 February 1998", should be placed in
the department's Tender Box at the reception counter, TD
Headquarters, 41st floor, Immigration Tower by noon on
March 23 (Monday).

     Late submissions will not be accepted.

End


17. Enactment of 12 maritime subsidiary legislation gazetted
    ********************************************************

     Twelve subsidiary maritime legislative measures are
gazetted today (Friday) and will be introduced into the
Provisional Legislative Council on February 25.

     They are: Merchant Shipping (Safety) (GMDSS Radio
Installation) (Amendment) Regulation 1998; Merchant
Shipping (Safety) (High Speed Craft) Regulation; Merchant
Shipping (Seafarers) (Certification and Watchkeeping)
(Amendment) Regulation 1998; Merchant Shipping (Seafarers)
(Hours of Work) (Amendment) Regulation 1998; Merchant
Shipping (Seafarers) (Navigational Watch Ratings)
(Amendment) Regulation 1998; Merchant Shipping (Seafarers)
(Engine Room Watch Ratings) (Amendment) Regulation 1998;
Merchant Shipping (Seafarers) (Certification of Officers)
(Amendment) Regulation 1998; Merchant Shipping (Seafarers)
(Certificates of Proficiency in Survival Craft)
(Amendment) Rules 1998; Merchant Shipping (Seafarers)
(Tankers - Officers and Ratings) (Amendment) Regulation
1998; Merchant Shipping (Seafarers) (Safety Training)
Regulation; Merchant Shipping (Seafarers) (Ro-Ro Passenger
Ships - Training) Regulation; and Pilotage (Dues)
(Amendment) Order 1998.

     Except the Pilotage (Dues) (Amendment) Order 1998,
the other 11 regulations aim to support the decision of
the International Maritime Organisation (IMO) in
strengthening maritime safety and ship construction as
well as safe operation of ships.

     The Merchant Shipping (Safety) (GMDSS Radio
Installations) (Amendment) Regulation 1998 gives effect to
the changes of the title of the Organisation from the
"International Maritime Satellite Organisation (INMARSAT)"
to "International Mobile Satellite Organisation
(Inmarsat)".

     It also requires Hong Kong registered passenger ships
on international voyages and any other passenger ships
engaged on international voyages while it is within the
waters of Hong Kong to comply with the new amendments made
to International Convention for the Safety of Life at Sea
1974 and its 1978 Protocol (SOLAS).

     These SOLAS amendments feature an addition of the
requirements for the distress alert receiving and
initiating equipment installed on board passenger ships
and the ship's position information should be included in
the initial distress alert; an addition of the
requirements for passenger ships to be provided with means
for two-way on-scene radiocommunication for search and
rescue purposes; and the assigning of at least one
qualified radio personnel to perform only
radiocommunication duties during a distress incident.

     Meanwhile, the Merchant Shipping (Safety) (High Speed
Craft) Regulation aims to implement the High Speed Craft
(HSC) Code and stipulates the requirements on design and
construction of high speed craft engaged in international
voyages and in voyages from Hong Kong to ports outside
Hong Kong, the equipment to be provided and conditions for
their operation and maintenance.

     Under the regulation, all Hong Kong registered high
speed craft, irrespective of their date of construction,
will be surveyed and issued with a High Speed Craft Safety
Certificate and a Permit to Operate High Speed Craft in
accordance with the requirements of the HSC Code.

     The regulation also applies to other Convention high
speed craft while they are within the waters of Hong Kong.

     As for the Merchant Shipping (Seafarers) Ordinance,
nine rules and regulations need to be made under the
ordinance to give effect to the 1995 amendments to the
International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers 1978 (the
Convention) which set out international standards on such
aspects widely-applied to seafarers on ships engaged in
international trade.

     The Convention which is applicable to seafarers on
Hong Kong registered ships underwent a comprehensive
revision by the IMO.  The amendments were adopted in 1995
to the Convention which came into effect internationally
on February 1 last year.

     The revision was to attain uniform international
implementation of minimum standards of competency and
training for seafarers.

     Failure to comply with the 1995 amendments would be
prejudicial to the safety of seafarers, shipping and the
prevention of marine pollution, and also inevitably result
in difficulties for Hong Kong ships and seafarers when
faced with inspection in foreign ports as provided for
under the Convention.

     By amending the subsidiary legislation of the
ordinance and by making two new regulations under the
ordinance, Hong Kong is enabled to fulfil an international
obligation to give effect to the 1995 amendments to the
Convention.

     The Pilotage (Dues) (Amendments) Order 1998 is
intended to come into operation on April 1 this year.

     The major revision is that the minimum pilotage due
as well as the fee for cancelling an engagement of a pilot
within one hour of the requested time will be revised from
$3,330 to $3,500 while the additional due charged for
gross registered tonnage will remain the same at 6.5 cents
per ton.

     In addition, the additional pilotage due for the
detention of a pilot will be $900 per half an hour for the
first hour, $900 for the second hour and $950 per hour for
any further period of detention.

End


18. Regulation to tighten diesel vehicles emission standards
    ********************************************************

     The Government gazetted today (Friday) the Air
Pollution Control (Vehicle Design Standards) (Emission)
(Amendment) Regulation 1998 to introduce stringent
emission standards for diesel private cars and to tighten
those for light duty vehicles other than taxis.

     A Government spokesman explained: "As part of our
strategy to reduce the number of diesel vehicles using the
roads, we propose to introduce a set of stringent emission
standards on private diesel cars, which will in practice
preclude them from first registration.  We expect that
this measure will cut about 270 new diesel private cars
from being imported to Hong Kong each year."

     "It is our policy to adopt the most stringent and
practicable emission standards.  Since the European Union
had  tightened their emission standards on light duty
diesel vehicles, we therefore propose to upgrade the
current emission standards for the first registration of
such vehicles accordingly," he said.

     Compared to our current standards, these new
standards will reduce emissions of respirable suspended
particulates, and nitrogen oxides and hydrocarbons from
individual diesel vehicles by 55 percent  and 38 percent
respectively.

     The spokesman noted that taxis were excluded from the
current exercise because the Government's intention is to
replace the diesel taxi fleet with LPG vehicles as soon as
practicable.

     The regulation will be tabled in the Provisional
Legislative Council on February 25.  The Government plans
to implement the new emission standards for private diesel
cars on April 1 while the new standards for light duty
diesel vehicles will be implemented on October 1 in order
to allow sufficient lead time for vehicle suppliers to
make necessary arrangements.

End


19. Tai Po sewerage project approved
    ********************************

     The Chief Executive-in-Council has approved a
sewerage project in Ting Kok Road, Tai Po, to improve the
environment of the Tolo Harbour, according to a notice
published in the Gazette today (Friday).

     The Executive Council, after deliberating an
objection, ruled that the project should be implemented
according to the original scheme gazetted in January last
year.

     The project comprises the laying of trunk sewer and
rising mains along Ting Kok Road from Tai Mei Tuk to Sam
Mun Tsai Road and the construction of two associated
sewage pumping stations.

     The proposed project is designed to collect sewage
generated along Ting Kok Road and will effectively reduce
the pollutants currently disposed of through septic tanks
or directly into Tolo Harbour.

     A spokesman for the Environmental Protection
Department said that appropriate mitigation measures would
be implemented as recommended in an environmental impact
assessment carried out for the project.

     Works are expected to commence in May 1998 and will
take approximately 30 months to complete.

     Works under this sewerage scheme will be carried out
in conjunction with a road scheme, the "Tai Po Development
Remaining Works, Ting Kok Road Upgrading Stage II", which
has also been approved by the Chief Executive-in-Council.

End


20. Town Planning Board to review Shek Kip Mei OZP
    **********************************************

     The Chief Executive in Council has recently referred
the approved Shek Kip Mei Outline Zoning Plan (OZP) to the
Town Planning Board for amendment to reflect the latest
land use proposals there, a spokesman for the board said
today (Friday).

     Amendments to the approved OZP are necessary to
facilitate the redevelopment of the old housing blocks in
Tai Hang Tung Estate by the Hong Kong Housing Authority,
the spokesman said.

     The Shek Kip Mei OZP (No. S/K4/7) was last approved
by the then Governor in Council on June 17, 1997.

     "The plan, after revision by the board to incorporate
the latest amendments, will be available for public
inspection under the provision of the Town Planning
Ordinance," the spokesman added.

End


21. ED recruits evening part-time lecturers
    ***************************************

     Teachers are invited to serve as part-time lecturers
in the evening courses at primary to senior secondary
levels in the 1998/99 school year.

     These courses include the English Course, the
Government Evening Secondary School Course and the Adult
Education Course (General Background).

     Applicants should be qualified teachers with a
genuine interest in teaching adults.

     Remunerations for part-time lecturers in 1997/98
school year are: $420 per hour for G.C.E. 'O' Level or
Secondary 6 level subjects; $350 per hour for senior
secondary level subjects; $280 per hour for junior
secondary level subjects and $255 per hour for primary
level subjects.

     Application forms are obtainable by  post with a self-
addressed envelope or in person from the Adult Education
Unit of the Education Department at 11th floor, Wu Chung
House, 213 Queen's Road East, Wan Chai.

     Completed application forms should reach the Adult
Education Unit on or before March 20.

     If applicants are not invited for interview by April
24, they should assume that their applications have been
unsuccessful.

     Enquiries can be directed to 2892 6669 during office
hours.

End






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