Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Monday, March 9, 1998 CONTENTS ======== 1. Transcript of the Chief Executive 2. TD's response on bus franchise 3. FS's vision: faith in free markets 4. Two new cholera cases confirmed 5. CE arrives for six-day visit to Germany and France 6. Nominations for subsector elections to start on Friday 7. Participation by all AIs in Credit Reference Agency 8. Exco members briefed on developments in education 9. SCOLAR invites applications to the Language Fund 10. Red Cross, Germany, hosts Mrs Tung 11. Tender for 15th issue of 5-Year Exchange Fund notes 12. Water storage figure 1. Transcript of the Chief Executive ********************************* Following is the transcript of remarks by the Chief Executive, Mr Tung Chee Hwa, after a meeting with the German Chancellor Helmut Kohl in Bonn today (Monday, HK time). I spent a very useful morning in Bonn. I just had a very engaging and interesting discussion with Chancellor Kohl. We talked about how the 21st Century world would be like. The Chancellor emphasised the importance of a strong relationship between China and Germany and also emphasised the importance of the relationship, a good relationship, between Hong Kong and Germany. We also discussed the current financial turmoil in Asia, how it has impacted on Hong Kong. I have explained to him my confidence, first that the linked exchange rate will stay and that we continue to march forward into the future with a great deal of confidence. We have also discussed a number of issues as to how to strengthen further the commercial relationship between Hong Kong and Germany. Both of us were particularly pleased to note a very high degree of confidence of the German businesses in Hong Kong after July 1st. We also took the opportunity to discuss the issue of visa-free entry, and the Chancellor said he would look into it further. All in all it was a very useful discussion. Earlier on in the morning I had an opportunity to meet two leading think-tanks in Bonn and we had a very extensive discussion on the issue of the currency turmoil in Asia as well as how Hong Kong is coping with it, how well Hong Kong is coping with it. I also expressed a very strong belief that the Renminbi will not be devalued as I said that Hong Kong's linked exchange rate to the United States Dollar will stay. We find all these discussions very, very useful particularly since it is the first time we are in Germany after the return of Hong Kong. Reporter (RTHK): Can I just follow up on that comment that you made before your departure from Hong Kong on the question of subversion. I want to ask very specifically whether the government has yet started work on the Basic Law Article 23 laws, when you intend to bring these laws to LegCo and whether you intend to consult the public on them. Mr Tung: First of all let me say this, that for any territory, national security is an issue that has to be considered. Secondly, that Article 23 of the Basic Law will, after consultation with the people of Hong Kong, be introduced in to the legislature to be enacted into law. And thirdly this will be done after the election of May 24th, after the first legislature has come into being. As to the precise time, I don't have it yet. Thank you very much. End 2. TD's response on bus franchise ****************************** In response to media enquiries on the rationale behind the transfer of 12 China Motor Bus (CMB) routes to Citybus and one route to Kowloon Motor Bus in relation to the current tender exercise for 88 franchised bus routes on Hong Kong Island, a spokesman for the Transport Department said: "CMB currently operates 112 regular routes, Citybus 75. This is scope for rationalisation of bus routes on Hong Kong Island to increase the overall efficiency of bus operations. "The rationalisation exercise aimed to achieve the following objectives: -- to promote healthy competition in each district; -- to ensure a balanced and viable network for each franchised bus operator; and -- to maintain a fair balance of local and cross harbour routes so as to avoid over-reliance on revenue from any route group. "With these objectives in mind, the route rationalisation involves the cancellation of 11 routes which are mostly peak-hour-only services and are operated to relieve MTR congestion along the Nathan Road Corridor. "The patronage of these routes is expected to drop with the opening of the MTR Tung Chung Line. "The route rationalisation also involves the transfer of one route to KMB and 12 routes to Citybus. "As a package, the 12 routes to be transferred to Citybus are loss-making. Some of these can be combined with existing Citybus routes to provide a more efficient network. "Any allegation about favouritism towards Citybus is completely unfounded. "As to press reports about not all CMB front-line staff would be re-employed by the new franchised operator because of the rationalisation of routes, it would be premature to speculate on this question as tendering is still in progress. "In a letter to all CMB employees dated February 17 and on a number of occasions thereafter, the Commissioner for Transport, Mrs Fanny Law, has emphasised that providing employment for existing CMB staff is an important consideration in the tender assessment. "In addition to making first offer of employment to CMB front-line staff, tenderers are also required to make concrete proposals on measures to absorb existing CMB staff. "Transport Department also pledged to explore actively existing or anticipated job openings with other bus operators to provide employment for CMB staff in the event that CMB does not tender or fail in the tender. "Opportunities for employment are available with existing franchised bus companies. KMB is recruiting drivers and mechanics regularly and Citybus would require over 200 mechanics when its new depot in Aldrich Bay is completed. "The Labour Department will also assist in engaging job placement or vocational training for CMB staff who do not wish to continue working in the bus industry." End 3. FS's vision: faith in free markets ********************************* The Financial Secretary, Mr Donald Tsang, is sticking fast to his vision of the power of free markets. Speaking at a joint Chamber luncheon today (Monday), he said: "if we keep our faith in the power of free markets, Hong Kong will renew itself and move forward once again". Mr Tsang was confident that with the enterprising capacity and inspiration in our citizens, Hong Kong was equipped with the resolve to ride out any difficulty it might encounter. He firmly believed that free market was the mechanism that worked best, that held out the best prospects of bringing the greatest good to the greatest number. In his first keynote speech after the delivery of the 1998-99 Budget, Mr Tsang told his audience that many of the budgetary measures that he had proposed were designed to give yet more freedom and flexibility to the citizens and companies of Hong Kong, to help them to adjust and to respond creatively to change. "I have sought to increase the sunshine of light taxes and maintain the support of strong investment," he said. While admitting that the Budget, by itself, would not lift Hong Kong overnight out of economic worries, the Financial Secretary stressed that "if we keep our nerve, if we work hard individually, and work hard together as a community, we will pull through". In recapitulating the revenue and expenditure packages announced in his Budget, Mr Tsang said that the biggest ever revenue concession package was meant to provide comfort to the community in these difficult days and to help the unfortunate. "At the same time, we intend to press on with all the expenditure plans set out by the Chief Executive in his Policy Address last year," he said. Mr Tsang pointed out that the new revenue measures and the wide ranging expenditure programmes were framed to help Hong Kong's economy and society adjust and respond constructively to new conditions. Speaking on the topical subject of reserves, the Financial Secretary said it was most adventurous for the Budget this year to have set out a framework for the management of the reserves which gave Hong Kong huge advantages both in present circumstances and at any time in future. "First, we keep strong reserves that calm the fears of international financial analysts and investors. Second, we can use the interest from those reserves to maintain public investment while keeping taxes low. "When our economy is faced with painful adjustment, as it is today, it doesn't have to bear the added strains of higher taxes or lower public expenditure," Mr Tsang said. End 4. Two new cholera cases confirmed ******************************* The Department of Health today (Monday) confirmed two new cholera cases, bringing the total number of confirmed symptomatic cases so far this year to 14. The two new cholera cases involved a 48-year-old female living in Sham Shui Po and a 56-year-old male living in Sai Kung. They presented with diarrhoea on March 2 and March 4 respectively and are now receiving treatment at Princess Margaret Hospital. Their conditions are satisfactory and stable respectively. The latter was confirmed as an imported case as he had a travel history to China during the five days' incubation period. Announcing this, a department spokesman said the two new cases had no direct link with the food premises in Causeway Bay which was believed to be the source of infection of three symptomatic cases confirmed last Friday. "Investigations so far revealed that they were also likely to be associated with inadequately cooked food. "Food samples, water samples, stool samples and environmental swabs were taken during the investigations. Test results will be available in one to two days' time," he said. The spokesman pointed out that as the cluster of recent cholera cases were all related to inadequately cooked food, it was important that the public should pay special attention to proper food hygiene practices, including washing hand before preparing or eating food; and cooking food, especially seafood and shellfish, thoroughly before consumption. In addition, proper personal and environmental hygiene practices should also be observed to prevent the disease and guard against other gastro-intestional infections, he said. The spokesman reiterated the following health advice which the public should adopt at all times for the protection of their health:- * Wash hands with soap after visiting toilet and before preparing or eating food; * Adopt good environmental hygiene and keep kitchen and cooking utensils clean; * Avoid cross-contamination between raw foods and cooked foods; * Store all perishable food not meant for immediate consumption properly; * Leftover food should be reheated thoroughly before consumption; and * All garbage and waste should be stored in a covered container before disposal. End 5. CE arrives for six-day visit to Germany and France ************************************************** The Chief Executive, Mr Tung Chee Hwa, arrived in the German federal capital Bonn early today (Monday, HK time) to start his first official visit to Germany and France. During the six-day visit Mr Tung will brief political, business and financial market leaders on Hong Kong's development since the Reunification on July 1, 1997. Accompanying Mr Tung will be the Secretary for Trade and Industry, Miss Denise Yue, and the Special Representative for Hong Kong Economic and Trade Affairs to the European Communities, Mr Andrew Wong. On the political front, Mr Tung will explain the smooth running of Hong Kong under the 'one country, two systems' principle and the continued support of the Central People's Government for the HKSAR's high degree of autonomy. Another topic likely to be discussed with political leaders will be travel convenience for HKSAR passport holders, who still require visas to enter Germany and France. On the financial front, the Chief Executive will reiterate Hong Kong's determination to maintain the linked exchange rate as a pillar of monetary policy. Mr Tung will explain how Hong Kong's well regulated, financial markets and open economy have helped it weather the financial and stock market storms battering other East Asian economies as well as how the correction in the property market will enhance Hong Kong's international competitiveness. The impact on Hong Kong and Asia of the European Monetary Union and the introduction of the 'Euro' currency in 1999 are also likely to be touched on. With business leaders, the Chief Executive will promote Hong Kong's role as the pre-eminent gateway to the massive markets in China and as the major services centre in the East Asian region. The 1998/99 Budget initiatives to attract more business to Hong Kong, tax breaks for business and measures to increase competitiveness, will also be in focus. Germany is Hong Kong's 6th largest trading partner, 4th largest market for exports and 7th largest source of imports while France is Hong Kong's 10th largest trading partner, 9th largest market for exports and 12th largest supplier of imports. Mr Tung will later today (HK time) meet German Chancellor Helmut Kohl; the President of the Federal Parliament (Bundestag) Professor Dr Rita Sussmuth; the Social Democratic Party chairman Mr Oskar Lafontaine and the Christian Social Union chairman and Federal Minister of Finance Dr Theodor Waigel. Mr Tung will attend a lunch hosted by the German State Minister for Foreign Affairs, Dr Werner Hoyer, meet the Secretary of State of Federal Ministry of Economic Dr Lorenz Schomerus and attend a dinner jointly hosted by the Asia-Pacific Committee Association, the Federation of German Industry, Association of German Chambers of Industry and Commerce and the East Asia Association. Mr Tung will tomorrow (Tuesday) meet Federal Vice- Chancellor and German Minister of Foreign Affairs Dr Klaus Kinkel and the Free Democratic Party chairman Dr Wolfgang Gerhard. The Chief Executive will then leave by helicopter for the German financial centre Frankfurt, where he will deliver the keynote address at a Hong Kong Trade Development Council (HKTDC) luncheon; meet European Monetary Institute president Dr Willem Duisenberg and Frankfurt Stock Exchange chief executive officer Dr Werner Siefert; and attend a dinner with Germany's leading bankers. On Wednesday, Mr Tung flies to Paris where he will meet, among others, French Prime Minister Mr Lionel Jospin and French Senat President, Mr Rene Monory, as well as deliver the keynote address at a HKTDC luncheon. On Thursday, Mr Tung will have breakfast with Paris Chamber of Commerce members before departing for Lyon, where he will visit a cancer research centre, the Lyon metro rail system and be guest of honour at a lunch hosted by the Mayor of Lyon, Mr Raymond Barre. On Friday, the Chief Executive will call on French President Mr Jacques Chirac after a morning of meetings with leading bankers and think-tank members. Mr Tung leaves Paris on Friday night (HK time) and is due back in Hong Kong on Saturday morning. End 6. Nominations for subsector elections to start on Friday ****************************************************** The nomination period for the April Election Committee subsector elections is due to start on Friday (March 13). Prospective candidates may obtain nomination forms from the Returning Officer of the respective subsector; District Offices; the Registration and Electoral Office on the 10th floor of Harbour Centre, 25 Harbour Road, Wan Chai, and the website (http://www.info.gov.hk). Completed forms should be returned to the relevant Returning Officer in person during office hours from March 13 to 20. Except for the ex-officio members, and the Religious Subsector, which will nominate its representatives, about 664 seats on the Election Committee will be returned by elections. A spokesman for the Registration and Electoral Office today (Monday) reminded prospective candidates to submit forms as early as possible to allow time for any errors to be corrected before the close of nominations. A nomination form should be subscribed by at least five voters registered for the subsector concerned. The spokesman advised candidates to include more than the minimum required number of subscribers in their nomination forms to avoid the risk of invalidation of their nominations should any subscribers be found not to be voters for the subsector concerned. Each nomination paper must be handed in together with an election deposit of $1,000. To qualify for nomination, a candidate must be aged 18 or above and is a registered elector for a geographical constituency. He must also either be a registered voter for the respective subsector or satisfy the Returning Officer that he has a substantial connection with the subsector, and he must not be disqualified from being a subsector candidate. A candidate cannot be nominated for more than one subsector, the spokesman said. Enquiries on the nomination procedure may be made on the election hotline - 2588 1212. End 7. Participation by all AIs in Credit Reference Agency *************************************************** The Hong Kong Monetary Authority (HKMA) has today (Monday) issued a letter to set out its views on the participation by authorized institutions (AIs) in Hong Kong in Credit Reference Agencies (CRAs). This follows the release by the Privacy Commissioner for Personal Data of a Code of Practice on Consumer Credit Data. "The HKMA considers that the Code of Practice provides a sound framework within which institutions may disclose consumer credit data to CRAs," said Mr David Carse, Acting Chief Executive of the HKMA. "The HKMA recommends all AIs to share credit information of personal customers within the limits laid down by the Code of Practice," he added. A study conducted by the HKMA in late 1996 proposed that Hong Kong should have a fully-fledged CRA in view of the growing trend in the banking industry to diversify the consumer-lending portfolio from asset-backed loans to unsecured loans, such as credit cards and personal loans. The recent financial market turmoil and the possible increase in credit risks have reinforced the view. The Hong Kong Association of Banks and the Deposit- taking Companies Association have endorsed the proposal. "There are already CRAs operating in Hong Kong, but a lack of full participation by authorized institutions reduces their usefulness," said Mr Carse. A fully-fledged CRA in Hong Kong would have the following two major benefits: * it would benefit all institutions (large and small ) and the banking industry as a whole in terms of better informed and more accurate assessment of customers' credit standing. This would lead to lower bad debts, better management of credit risk, and increased opportunities to expand the market in consumer credit; and * it would further improve the financial infrastructure in Hong Kong, thus further enhancing Hong Kong's status as an international financial centre. The Code of Practice issued by the Privacy Commissioner permits the disclosure, inter alia, of credit data of both existing and new customers in respect of account defaults data, credit application data within the last 90 days, and credit card loss data arising from unauthorized credit card transactions. The HKMA would prefer that all relevant institutions should be prepared to share these types of information. For those institutions which remain concerned about loss of market information to their competitors, the HKMA is prepared to accept that such institutions should participate initially only in respect of credit card data. End 8. Exco members briefed on developments in education ************************************************* Members of the Executive Council were this (Monday) afternoon briefed on the latest developments in education as well as plans for the future during a familiarisation visit to Education Department headquarters at Wu Chung House in Wan Chai. The group of eight non-official Exco members led by the convenor, Dr the Hon S Y Chung, learned about the Government's emphasis on information technology education via a presentation featuring Intranet and video conference technologies. New initiatives in education such as Quality Assurance Inspection, plans for whole-day primary schooling and classroom designs for year 2000 were discussed, as were the progress in Target Oriented Curriculum, civic education, special education and services for new arrival children. The group also toured an exhibition featuring such areas as School Management Initiative, home-school co- operation, curriculum development and tailoring before exchanging views with the Director of Education, Mrs Helen C P Lai Yu, Deputy Director T F Kwan and the rest of the Education Department directorate. The other members of the visiting group were the Hon T L Yang, the Hon C Y Leung, the Hon Rosanna Wong, Dr the Hon Raymond Ch'ien, the Hon Charles Lee, the Hon Anthony Leung and the Hon S M Chung. End 9. SCOLAR invites applications to the Language Fund ************************************************ The Standing Committee on Language Education and Research (SCOLAR) announced today (Monday) that the sixth call for application to the Language Fund will close on April 30,1998. Following its pro-active strategy, SCOLAR will attach vetting priority to projects that aim to enhance secondary language education. Under the broad area of secondary language education, English language projects designed for or undertaken by Chinese-medium schools are particularly welcome. "We hope to encourage more Chinese-medium secondary schools to take the initiative to create better conditions for English learning and teaching; projects may take the form of language learning activities or programmes, development of resource materials or extra-curricular activities," said Dr Nancy Lee, Secretary to SCOLAR. Other school-based language improvement projects are also welcome. The SCOLAR Support Unit will meet with representatives from schools at two seminars to be held on March 21 and 28 to explain details of the sixth call. At the same time, SCOLAR has put out 10 specific research tenders for open applications. Interested organisations or individuals are welcome to submit research proposals on these issues. The theme of these research tenders centre on how Chinese and English language education at the secondary level may be improved and the impact of the switch in medium of instruction, if any, on students' language proficiency. One of the research tenders invites applicants to conduct an evaluation of the Native-speaking English Teacher (NET) Scheme to be implemented with effect from the next school year. Other tenders include the study of the development of the English language competence of students in schools which will switch to Chinese medium of instruction in September 1998, and the identification of problems of transition from Chinese medium instruction in secondary schools to English medium of instruction at tertiary institutions as well as recommendations to ensure effective learning at tertiary level. Based on the findings of these research projects, SCOLAR will be better placed to advise the Government on the future direction of language in education policy. All applications to the Language Fund should be addressed to the SCOLAR Support Unit, Rooms 1505 - 1509, 15th floor, Edinburgh Tower, the Landmark, 15 Queen's Road Central, Hong Kong. (Tel: 2921 8349, Fax: 2801 7490). Application forms are obtainable in person at the above address or the General Enquiry, Education Department, 15th floor, Wu Chung House, 213 Queen's Road East, Wan Chai. Applicants may also download the application forms and the list of research titles from the web sites: http://www.info.gov.hk/emb/ or http://www.info.gov.hk/ed/. End 10. Red Cross, Germany, hosts Mrs Tung ********************************** The work of the Red Cross in Hong Kong and Germany has been discussed during a visit to Red Cross, Germany, by Mrs Betty Tung. Mrs Tung met with the President of Red Cross, Germany, Professor Dr Knut Ipsen and was briefed on its work by Mr Thomas Klemp, the Deputy General Secretary of Red Cross, Germany. Mrs Tung, a co-director of the Red Cross in Hong Kong, has taken the opportunity when travelling overseas with her husband the Chief Executive, Mr Tung Chee Hwa, to foster closer ties with other Red Cross organisations. The meeting took place in Bonn on Monday (HK time). End 11. Tender for 15th issue of 5-Year Exchange Fund notes *************************************************** The Hong Kong Monetary Authority announced today (Monday) that the tender for the 15th issue of 5-year Exchange Fund notes will be held next Monday (March 16) for settlement on Tuesday (March 17). Similar to the previous issue, an amount of HK$500 million 5-year notes will be on offer. In addition to that, 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 March 17, 2003 and will carry interest at the rate of 8.02% per annum payable semi-annually in arrears. Members of the public who wish to tender for the notes may do so through any of the Market Makers or Recognised Dealers on the published list which can be obtained from the Hong Kong Monetary Authority, 30th floor, 3 Garden Road, Hong Kong (or telephone 2878 8150). Each tender must be for an amount of HK$50,000 or integral multiples thereof. HONG KONG MONETARY AUTHORITY EXCHANGE FUND NOTE PROGRAMME TENDER INFORMATION Tender information for the 15th issue of 5-Year Exchange Fund notes:- Issue Number : 5303 Tender Date and Time : Monday, 16 March 1998 9.30 am to 10.30 am Issue and Settlement Date : Tuesday, 17 March 1998 Amount on Offer : HK$500 million plus an additional HK$100 million as reserve stock for the Monetary Authority Maturity : Five years Maturity Date : 17 March 2003 Interest Rate : 8.02 % per annum payable semi-annually in arrears Interest Payment Dates : 17 Sept 1998, 17 Mar 1999, 17 Sept 1999, 17 Mar 2000, 18 Sept 2000, 19 Mar 2001, 17 Sept 2001, 18 Mar 2002, 17 Sept 2002, 17 Mar 2003 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 12. Water storage figure ******************** Storage in Hong Kong's reservoirs at 9 am today (Monday) stood at 81.7 per cent of capacity or 478.799 million cubic metres. This time last year the reservoirs contained 459.999 million cubic metres of water, representing 78.5 per cent of capacity. End
