Issued by Hong Kong Special Administrative Region Government Information Services
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Wednesday, March 11, 1998 CONTENTS ======== 1. CE's transcript of press conference in Frankfurt 2. CE's transcript at TDC lunch in Paris 3. Statement on drafting legislation on Article 23 of Basic Law 4. Response to election survey 5. No change to Government's medium of instruction policy 6. CE seeks greater role by German business and banks in HK 7. CE's speech in Paris 8. CE's speech in Frankfurt 9. High-powered committee to promote fire safety 10. Results of avian flu case-control study 11. 28 to run for conduct council seats 12. Inaugural issue of HKMC Notes well received 13. Hong Kong Monetary Authority tender results 14. The weather of February 1998 1. CE's transcript of press conference in Frankfurt ************************************************ Following is the transcript of press conference by the Chief Executive, Mr Tung Chee Hwa, at the Hotel Intercontinental Frankfurt after a Hong Kong Trade Development Council luncheon at the hotel yesterday (Tuesday, Hong Kong time). Mr Tung: Good afternoon. I arrived on German soil late Sunday evening with my colleagues and we are set to leave some time tomorrow for Paris. We are deeply touched by the warmth of our reception here by the German government, by the German people. It's been a very important and useful visit for us. It is the first time I have visited Germany, first time in an official capacity I have visited Germany but of course I have been to Germany many times before for my life as a businessman. We had very long and interesting discussions with Chancellor Kohl, Finance Minister Mr Waigel, Foreign Minister Dr Kinkel and with other ministers, leaders in the industrial, commercial and banking sectors. I took the opportunity to explain to them about how well Hong Kong has been doing since the return of Hong Kong to China, that 'one country, two systems' is moving forward. We discussed about the Asian currency turmoil, how this will eventually play out and that it is still not totally settled. There are still ripples coming through from Indonesia. But we all recognise that Asia fundamentally has some good strengths i.e. a young, educated workforce, a flexible workforce, high savings rates and therefore Asia will still be a place for German business to invest and to participate. The Asia market is still an important market to Germany in the future. We discussed about the importance of a good Hong Kong-German relationship and at the beginning of the 21st Century unfolds in Asia, as China moves forward in its economic development, as Asia recovers from the current financial turmoil, there will be abundant opportunities in Asia also and I think to German business Asia should continue to be important and Hong Kong in that respect would be important for Germany. So we all agreed it is important for us to enhance this very important relationship we have. Finally, during my visit here I also discussed both with the Prime Minister and the Foreign Minister about the visa-free issue and they all agreed to take it up and take another look at the situation. Reporter (Danish Business Daily): Mr Tung, I was in Hong Kong a month ago and I met a lot of business people who told me they were quite satisfied that property prices and share prices have come down. And you were into the same line of reasoning in your speech. But it would be very interesting to hear whether you find the asset prices have come down sufficiently or whether you would like to see prices to fall even more to cool off the economy. Mr Tung: The asset prices have fallen off very substantially as you say, and it's fallen off very steeply also. One thing is to fall off substantially, the other is to fall off steeply in a short period of time. And this time it is important to find some stability of the property prices and we need a period of stability for our banks, for the community to digest the entire situation. As to how the future would develop, well let the future market move in its own way. Reporter (German International Radio): I have been in Hong Kong just three weeks ago and I talked to a lot of people, it was by the invitation of your government and I talked to a lot of people about the electoral law. And they kept on saying the same thing as you did today, creating an impressive picture about the economic community of Hong Kong and the flourishing community and I still don't understand why do you need such a complicated electoral law. Don't you think that people who have created such a flourishing economic community are mature enough for full and democratic suffrage? Mr Tung: You finds our system complicated. I find your system very complicated. I think we are moving forward in what we believe is in the best interests of Hong Kong people, as I said earlier on. It does sound complicated but not if you live with it every day, and we understand what it is all about. I think the important thing to remember is that the election will be fair, will be open, will be honest and will be properly supervised by the electoral commission. And it will be a good election. Reporter (Cliffe Bale, RTHK): The question of visa-free access which you have raised with both Chancellor Kohl and Dr Kinkel. Now we hear that, in particular after your meeting with Dr Kinkel, that he was very sympathetic and agreed to bring it forward. Can I ask you for your reaction to this and also exactly what you would like to see achieved in this area. Is it full visa-free access throughout the European Union or is it something in between what the situation now and for visa-free access? Mr Tung: I think, Cliff, our objective is very clear. Obviously it is total, full visa-free access over the whole European Union. I think this is important to enhance further Hong Kong and European Union relationship, in almost every respect. We have actually, in all my travels in Europe previously and this time we have made this a very important issue. Obviously something which all the Schengen countries would have to decide. It is a complicated issue, it is an issue that would take time. But we are working at it very steadfastly hoping to gain more and more sympathetic audiences and I feel there is a good chance we will eventually be successful. Reporter (German reporter): There was, as you mentioned, some shock waves coming from let's say Indonesia, hitting one of the most important investment banks in Hong Kong. The government did not help Peregrine for example. If there are some more shock waves to come from this area, from this direction is it the general policy of your administration to give no aid to struggling financial institutions? Mr Tung: Put it this way, when public interests are involved, obviously we would have to look at the situation very seriously. The banks are very closely supervised and there is a great deal of consideration in terms of public interest. But in so far as financial companies, such as the one you mentioned, the stock dealings in Hong Kong by that company were actually well segregated from the rest of the business. So from Hong Kong's point of view, public interest was not directly involved and therefore there was a decision not to help. So this will be a consistent government policy. Reporter (Berlin newspaper): You are aware that especially journalists follow the development of the Hong Kong media very closely and over the last days there has been some irritation in the Hong Kong media and some criticism on RTHK. When you left Hong Kong you said you were prepared to answer question on that so now I am asking you. Do you feel that RTHK is too critical of your government and you personally and second, do you intend any change to the current status quo as a politically independent TV and radio station? Mr Tung: Let me say this, that freedom of speech is very important to Hong Kong and it is something that nobody should doubt our resolve on. Number two is that the issue of RTHK, its role has been a debate, not just in the last few days, the last few months. It was debate before July 1st, it's been debated for years as to what the role of a publicly funded radio should be, radio or TV should be. And I have listened to a whole lot of voice, opinions and I will continue to do that. Thirdly it that freedom of the press is very important, freedom of information is very important but the debate of RTHK's role and the freedom of information and the freedom of the press are two separate issues. In so far as the freedom of the press is concerned I have said many times it is very important to Hong Kong. I would hope the press would continue to play the role of not only a transmitter of messages but also to play a role as a monitor body to government policies. It is a very important role that the Hong Kong press has played and I would hope that the press would continue to play that role. Reporter (German reporter): Mr Tung a few minutes ago you gave us a very optimistic outline of the Chinese economy. Will the Chinese government really keep their promise not to devalue the yuan in 1998 and if not what does it mean to the Hong Kong Dollar? Mr Tung: I think, whether there is devaluation or not, you look at it in two ways. One is the fundamentals of it and the fundamentals are clearly there, the message is clearly there from what I can see there is no need for devaluation. And secondly, you know, the capital account is not free today in China so it is very difficult for speculators for instance to run against the Reniminbi, it just doesn't work. So with that sort of background I just cannot see Renminbi depreciating at all, I am very confident. Reporter (Angela Li, SCMP): It is understood that the Department of Justice has already sped up the drafting work on the anti-subversion law. How since you are when you say you will consult the public on the proposed anti- subversion law given the fact that you have already started drafting it and speed up its work, before consulting the public? Mr Tung: I have absolutely no idea that, what the Department of Justice is doing. I think they are doing it, if they are doing it, they are doing the normal preparatory work and from my point of view, as I said before I left Hong Kong I think I answered to you Mr Bale there will be proper consultation before law will be enacted and that's the way it's going to be. Reporter (Angela Li): But how since you are when you have the Department of Justice ...? Mr Tung: I'm saying it as honestly and sincerely as I can. Reporter (German International Radio): In your speech you stressed the importance of rule of law and transparency in the rule of law but how would you explain a case like the case we could read in the newspaper of Emily Lau requested her file of Xinhua News Agency and it was denied by the Justice Department that she could read her personal file. How do you explain a case like this, concerning? Mr Tung: Oh very simply, very easily. There is a Privacy Commission in Hong Kong who have asked for confirmation from Xinhua News Agency on whether there is a file on a certain person but the answer that came back is that there is no file on that person. And normally that should be the end of that. And the only thing is that this case, together with seven other cases, there were technical violations because the time allowed for answer expire, it was not just one case but seven other similar cases due to technical reasons, not due to factual reason, but technical reasons. So the Justice Department at that time made the decision not to pursue this further. In Hong Kong, in areas like this, the Justice Department are quite independent from me, from the Executive, in making these decisions and that is the strength of Hong Kong. Reporter (Der Spiegel): Let me follow up on that one. Does that mean the Chinese institutions in Hong Kong, like Xinhua, do not stand under the law? Mr Tung: Well as I said earlier on, this was one of eight cases so the issue is not Xinhua, the issue is that there was a technical breach, not a substantive breach and the Justice Department decided not to pursue all these eight cases, not just one case, all the eight cases. One of them was associated with Xinhua. Reporter (Dow Jones): Just to change the subject a little bit and looking at what you'll be talking about later this afternoon. You are meeting President Duisenberg from the EMI (European Monetary Institute) and I was wondering what your talks would include. Mr Tung: I am looking forward to meeting him. I will be anxious to learn about his views about the Euro (currency), about the big event that's going to happen on May 1st and beyond and from this, I hope to understand even more as to what the implication this might be for Hong Kong in terms of trading with Europe in the future. All this is very important to us in Hong Kong. Reporter (Angela Li, SCMP): It's a follow up question on the Xinhua case. You mentioned that the Xinhua case is a technical breach, can you define what you mean by a technical breach from the substantial breach which you just said. Mr Tung: If I remember correctly, as I said these are the decisions made by the Justice Department, but if I remember correctly you are supposed to respond within a certain period of time and the time lapsed and that was really the issue so we call that a technical breach. End 2. CE's transcript at TDC lunch in Paris ************************************* Transcript of remarks by the Chief Executive, Mr Tung Chee Hwa, during a Q&A session at a HKTDC luncheon in Paris today (Wednesday). Q: I want to ask you a question our friends have here have on their minds. Another big city, in fact as you mentioned China is developing fast, which is Shanghai. So for your last word how would you compare the foreseeable future of Hong Kong and Shanghai? Mr Tung: I think the progress made in Shanghai over the last few years has really been admirable. I was back in Shanghai in October and saw for myself what has happened there. Shanghai will indeed be a commercial, financial, educational and manufacturing centre of China. It is the city of China. For Hong Kong, we will have our role to play. We are a very important international financial centre, international financial centre, for the mainland of China. Hong Kong has still the most efficient and the best port facilities. Hong Kong will continue to be a very important service centre of all kinds. You might be interested to know that 85 per cent of the toys purchased around the world are generated from companies controlled in Hong Kong. The manufacturing may be all over the place, including on the mainland of China, but that is what we in Hong Kong can do. Competition from Shanghai, I think is a welcome fact that the more we compete the better we will improve, and that goes for Singapore too because they are also trying very hard to compete with us. And we will make sure we will be always ahead in this competition. End 3. Statement on drafting legislation on Article 23 of Basic Law ****************************************************** ****** In response to media enquiries, a Department of Justice spokesman said today (Wednesday), "The Department of Justice has not received any drafting instructions for implementing Article 23 of the Basic Law. A newspaper report which stated that we were speeding up the drafting of the bill was inaccurate." End 4. Response to election survey *************************** In response to media enquires on the survey results on people's awareness of the 1998 Legislative Council Elections conducted by the Social Sciences Research Centre of the University of Hong Kong, a spokesman for the Constitutional Affairs Bureau said today(Wednesday): "In publicising the Legislative Council Election to be held on May 24, the Government has formulated a comprehensive plan featuring a series of promotional activities and materials to promote the various phases of the election, the functions and composition of the Legislative Council, the electoral system, the polling day and the polling method. The objective of the campaign is to familiarise the public with the entire electoral process and voting methods in a systematic way. For instance, between December last year and mid-January this year, the publicity effort was focused on voter registration. From now until the election day, the various electoral arrangements such as the composition of the first Legislative Council, the List Voting System, the electoral arrangements and the polling day will be highlighted in our publicity campaign. As regards the promotional activities and materials, they include a roving exhibition to be held at the Times Square in Causeway Bay, similar exhibitions and mock voting to be held by the various District Offices, giant posters to be put up at prominent locations such as the entrance of tunnels, television and radio clips, a theme song, appeals by celebrities, posters, leaflets, pamphlets, an election special and special TV and radio programmes. The Registration and Electoral Office will also send information on candidates to all electors. As the Government's intensive publicity efforts on the election had not started in February when the survey was conducted, the respondents' limited knowledge on the arrangements concerning direct election is understandable. But when more promotional activities are held until election day on May 24, we believe that the community would have a better understanding of the various arrangements concerning the first Legislative Council Election, including the distribution of the various constituencies and the number of directly-elected seats in each of these constituencies." End 5. No change to Government's medium of instruction policy ****************************************************** It has been government policy to strengthen the teaching and learning of Chinese and English to enable students to be biliterate and trilingual (i.e. be conversant with written Chinese and English, and be able to speak fluent Cantonese, Putonghua and English) and to promote mother-tongue teaching to enhance students' cognitive development and learning ability. It has also been government policy to discourage the use of mixed code, i.e. a mixture of Chinese and English, in teaching and learning. This is clearly stated in the Medium of Instruction (MOI) Guidance for Secondary Schools issued by the Education Department in September last year. "This remains our policy," a government spokesman stressed today (Wednesday) in response to press enquiries about Government's medium of instruction policy. As regards reports that some schools which use English as their MOI will be allowed to use Chinese to teach certain subjects and vice versa, the spokesman explained that the MOI Guidance for Secondary Schools provides that exceptional consideration may be given to the special nature of certain subjects such as religious studies, cultural, commercial and technical subjects and to the individual circumstances of a school. "In other words, the Guidance provides for flexibility for a Chinese MOI school to use English to teach cultural and technical subjects, and vice versa. "However, it does not provide for a Chinese MOI school to use English to teach academic subjects nor for an English MOI school to use Chinese to teach its academic subjects," the spokesman added. End 6. CE seeks greater role by German business and banks in HK ****************************************************** ** The Chief Executive, Mr Tung Chee Hwa, has urged German business chiefs and top-flight bankers to continue to seek greater investment and business opportunities in Hong Kong. Mr Tung reassured the German audience that Hong Kong's linked exchange rate system was here to stay and that a competitive devaluation was not a consideration for Hong Kong. In Frankfurt early today (Wednesday, Hong Kong time), Mr Tung met European Monetary Institute (EMI) president Dr William Duisenberg and Frankfurt Stock Exchange chief executive officer Dr Werner Seifert before attending a dinner with Germany's top bankers. Dr Duisenberg briefed Mr Tung on the latest developments of the Euro and European Monetary Union. Mr Tung congratulated the EMI for making such a remarkable and historic achievement which would greatly facilitate trade and enhance price stability within the Union. During his meeting with the Frankfurt Stock Exchange's Dr Seifert, the Chief Executive said he was impressed with a visionary presentation on the development of the Exchange as a common capital market for the EU after the introduction of the Euro. Dr Seifert also highlighted the possibility of Hong Kong becoming the Asian partner in such development. During his dinner meeting with leading bankers Mr Tung took the opportunity to highlight the unique position of Hong Kong against other Asian economies. He briefed his hosts on the latest economic situation in Hong Kong and China and encouraged them to participate in developments in the area. Earlier yesterday (Tuesday, HK time) Mr Tung delivered the keynote address at a Hong Kong Trade Development Council (HKTDC) luncheon in Frankfurt. Mr Tung urged more than 300 guests, mainly from the business sector, not to lose faith in Hong Kong's economic strength during the current economic downturn in some Asian economies. He said Hong Kong's dollar link to the US Dollar was a 'pillar of strength' in the region and that Hong Kong's externally-orientated economy needed the stability of a fixed exchanged rate. He also pointed out that such stability was what business needed during such volatile times in the markets. Meanwhile, Mr Tung told reporters that one of his most important tasks in Germany and France was to push for 'total, full visa-free access' for HKSAR Passport holders. Mr Tung said that German Chancellor Helmut Kohl and Foreign Minister, Dr Klaus Kinkel, had agreed to follow up Hong Kong's request during his meetings with them. Dr Kinkel was sympathetic to Hong Kong's case and promised to take a further look at the visa requirement. Mr Tung said Hong Kong people, in particular the business community, placed a great deal of importance on travel convenience. He told a press conference that his ultimate goal was to achieve 'total, full visa-free access over the whole European Union'. "I think this is important to enhance further the Hong Kong and European Union relationship," he said. "We have actually, as in my last visit to Europe, made this a very important issue. "It is a complicated issue. It is an issue which will take time. But we are working on it very steadfastly hoping to gain more and more sympathetic audiences and I feel there is a good chance that we will eventually be successful." In Bonn earlier yesterday, before catching a helicopter to Frankfurt, Mr Tung met with Federal Vice- Chancellor and Foreign Minister Dr Klaus Kinkel as well as Free Democratic Party chairman Dr Wolfgang Gerhard. Mr Tung said he had been 'deeply touched by the warmth of the reception here in Germany' and grateful to the German government for its hospitality. "It's been a very important and useful visit for us," he said. "We shared a common commitment to a solid Hong Kong- German partnership and discussed the abundant opportunities available for German business in Asia, especially in Hong Kong and China, despite the current financial turmoil. "We all agreed it is very important for us to enhance this partnership we have." This afternoon (Wednesday, HK time) Mr Tung flies to Paris for the second leg of his two-country visit. He is scheduled to 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. End 7. CE's speech in Paris ******************** Following is a speech by the Chief Executive, Mr Tung Chee Hwa, at a lunch hosted by the Hong Kong Trade Development Council and the Conseil National du Patronat Francais International (French Employers' Association), in Paris today (Wednesday): Mr Perigot, Mr Pelletier, Victor, distinguished guests, ladies and gentlemen It's it truly great to be back here in Paris. It is truly great to be seeing so many old friends. Old friends of not just yesterday but years and years of friendship. So I'm really happy to be back here. As you know until very recently I have been a businessman and if you ask me for any advice I would tell you please don't do what I have decided to do, because among others things, it deprives me of frequent visits to this lovely city. I am delighted to be here in Paris. It is a great honour for me to be standing before such a distinguished gathering. I am most grateful to the Hong Kong Trade Development Council and the CNPF for organising this luncheon. 1997 was an extraordinary year for Hong Kong. July 1st saw the smooth and seamless return of Hong Kong to China, thereby ending 157 years of colonial rule. Indeed, the people of Hong Kong had looked forward to this great occasion with immense pride: pride in that we were at last reunited with our own country, and have become masters of our own destiny. 1997 was also an extraordinary year for Asia at large. Buoyed by years of continuous growth and prosperity, the region seemed ready to shrug off numerous structural weaknesses and continue its march into the next century. Six months ago, these structural weaknesses of selected Asian nations triggered a financial crisis that reverberated around the world. I would like to take this opportunity today to tell you how well Hong Kong has done, as part of China and under "one country, two systems". I will talk about the Asian financial turmoil and its impact on Hong Kong. In the process, I will also discuss the economic development in China. Finally, I want to talk about our bilateral relationship, and just how important France is to Hong Kong. Hong Kong has indeed been moving forward with pride and confidence since the successful reunification. Even though the euphoria has been somewhat dented by the economic downturn as a result of the Asian financial turmoil, hope remains high in Hong Kong. It is not surprising that many of those who have visited Hong Kong since the Handover share our confidence and enthusiasm. Let me quote Mr James Wolfensohn, President of the World Bank, who said in his concluding remarks at the World Bank/IMF annual meetings held in Hong Kong last September: "Seeing this region and seeing Hong Kong, the 'one country, two systems' is certainly something that we can now believe and I think it served as a very reassuring message to all of us that Hong Kong will continue as it has before." What makes us so confident in managing our future? The ultimate source of our confidence is, of course, the solid promises of the constitutional document, our Basic Law. It is a comprehensive document drafted by people from both Hong Kong and mainland China after some four years of consultation and discussion. The Basic Law provides a constitutional framework for the Hong Kong Special Administrative Region. It institutionalises the concept of "one country, two systems". It clearly prescribes that the social, economic and political systems in Hong Kong will be different from those in the mainland of China. It protects the rights, freedoms and lifestyle of Hong Kong people. The Basic Law guarantees the independence of our judiciary. It allows us complete financial autonomy, it establishes Hong Kong as a separate customs territory and, apart from foreign affairs and defence, it gives us full responsibility to manage our own affairs. It should be remembered that "one country, two systems" did not originate in London or Hong Kong. It was a concept developed by China. The reason is simple: by preserving and further enhancing the success of Hong Kong, we can contribute towards the continued modernisation of China. In addition, the demonstration that different social, economic, and political systems can operate within one country be a significant step towards the greater and final objective of re-unification of the entire nation. Therefore, it is clearly in the fundamental, national interest of China that the 'one country, two systems' concept be successfully implemented. Since July 1, we in Hong Kong have been administering our own affairs. We are also carrying on with the development of democracy in Hong Kong. The Basic Law, requires us to develop our democratic institutions: our commitment as a society is to do the same. The Basic Law has set out a 10-year timetable for elections both for the Chief Executive and for the Legislature. On May 24, the elections for the first full Legislative Council will be held. This first full legislature will have 60 elected members - 20 of whom will be directly elected. The second legislature, to be elected for a four-year term in the year 2000, will have 24 directly-elected seats while the third legislature from 2004 will have 30, directly elected seats, the other 50% being indirectly elected. Under the Basic Law, Hong Kong people will also have an increasingly larger voice in the selection of the Chief Executive. As you know Hong Kong never had a single voice in the selection of the Governor during colonial rule. I myself was elected in December 1996 by a committee of 400 people from many walks of life. The second Chief Executive, serving from 2002 to 2007, will be selected by a similar committee, except that it will be enlarged to 800 people. In fact, the process of democratic evolution in the next decade will be far more comprehensive and far- reaching than what we had under 156 years of colonial rule. And what will happen after 2007? The Basic Law provides that further democratic evolution will depend on the wishes of Hong Kong people and the overall environment at that time, with universal suffrage being the ultimate objective. Let me now talk about the Asian financial turmoil and how it has affected Hong Kong. Let me paint you a broad perspective. In July, Thailand abandoned its peg to the US Dollar and in less than eight months, three of the 'Asian Tigers' were brought under the care of the IMF, with more than US$100 billion mobilised for their rescues. The ferocity and speed of the contagion were unprecedented, unleashing what the Managing Director of IMF, Michel Camdessus, has called 'the first global financial crisis of the 21st Century'. The origins, causes and effects of the Asian crisis are complex, but the broad problems are fairly well known. In those countries which have been badly affected, it was a combination of private sector over-borrowing, inadequate bank regulation, poor risk management and tragic policy errors at the corporate and banking levels, both national and international. Certainly, the governments involved did not have sufficient sound macro-economic policies which took into account the new global, economic, financial and competitive environment. The fact is that the enormous benefits from financial liberalisation need to be built on a robust financial system in order to cope with the associated volatility in financial markets. The tidal wave that swept Asia has been devastating, and has sent ripples across the globe. But I must emphasise that Asian economies are not all the same. Those economies that have sound fundamentals, credible policies and low leverage, such as China, have succeeded in weathering the storm. Those with free markets, strong regulations, rule of law and stringent fiscal discipline, such as Hong Kong and Singapore, have passed the test of fire. When will the Asian financial crisis end? I see several key factors affecting the pace of recovery: First, there are clear signs that the Asian economies are generating trade surpluses, instead of trade deficits. Second, the financial situation in Korea has stabilised because the world finally realised that financial crises cannot be solved by official funds alone, but a combination of IMF funding and conditionality, plus voluntary rollovers provided by international banking institutions. This appears to be the right way forward. Third, as the largest economy and financial powerhouse in Asia, Japan must maintain positive growth and stability in the yen. Fourth, the international financial and economic environment must remain stable. Everyone hopes that there will not be further shocks emanating from the large markets on the smaller emerging markets. Fifth, both mainland China and Hong Kong will maintain stability in the Renminbi and Hong Kong Dollar as the anchors of currency stability in Asia. Finally, Asian economies must maintain their resolve and determination to restructure and reform with the help of the IMF and other multilateral agencies. The financial crisis in Asia has been painful to us all. But the fundamentals in Asia have not changed. We still have the young and flexible workforce, the high savings rate, openness to trade and ideas and an indomitable spirit to improve ourselves. Some glaring uncertainties, particularly those in Indonesia, still need to be resolved, but I would expect the Asian crisis to bottom out in a year or two and we shall then witness a slow but sure road to recovery. Now, let me say a few words on Hong Kong. Over the past decades, Hong Kong has achieved, in every respect, most enviable success. At US$25,000, our GDP per capita is the second highest in Asia. We have the busiest and most efficient container port in the world and also the third busiest passenger airport in the world. We are probably the most successful financial centre in Asia. All this has been achieved because of the hard work and entrepreneurial spirit of the people of Hong Kong. This has also been made possible because of the 20 years of rapid and successful economic development in the mainland of China, which has given our economy boundless opportunities to move forward. What's more, we practise sound macro-economic policy of small government, with strong support for the free market. With our strong commitment to prudent financial management, we have consistently been able to achieve budget surpluses averaging 2% of GDP per annum. For the current fiscal year ending this month, our budget surplus is an astounding 5.8% of our GDP. We have a flexible and efficient economy and nowhere is this better seen than in our labour market, which has faced massive changes over the past decade as manufacturing processes were relocated into the southern parts of China. Employment in the manufacturing industry declined from 870,000 in 1986 to 310,000 by September 1996 - a 65 per cent drop. But our flexible workforce has been so successfully relocated to service industries that our unemployment rate has remained at a low 2 to 3 per cent throughout. Our robust financial system and monetary management mechanism, modern and prudent supervision as well as sophisticated financial infrastructure provide us with the foundations for a stable exchange rate. Our banking system is strong, with capital adequacy ratios of locally incorporated banks averaging 17% and bad debt ratios of less than 2%. We have a low, consistent and simple tax structure, an open and accountable government, and a lean and corruption free civil service. Most importantly, we believe strongly in upholding the rule of law. Many have questioned the need for us to maintain a fixed exchange rate policy. The fact is, Hong Kong is very much an externally-oriented economy. Almost all our daily needs are imported. Most of our manufactured products are exported. As an entrepot, we handle a large volume of re-exports. Our service industries are also very externally oriented, providing financial and other services for the region, particularly China. Businessmen engaged in these externally orientated economic activities want certainty in exchange rates. So does the community at large. Many have questioned whether we need to devalue the Hong Kong Dollar. Can we continue to be competitive with the rest of Asia where currencies have depreciated so much. I do not believe we need to devalue the Hong Kong Dollar. It is not in Hong Kong's interest to do so. The fact is that close to 85% of our GDP is generated by the services sector. In that, competitiveness is not just about the cost but about other important factors, such as the need for the rule of law, a corruption free society and predictable government policies which put investors, local and international alike, as ease. Competitiveness is also about the quality and creativity of the people. In these areas, I am proud to say, few in Asia can match Hong Kong. Indeed, since 1983 Hong Kong has operated a currency board system which provides full US Dollar backing for our currency and provides currency stability. In the recent round of attacks on the Hong Kong Dollar, the currency board system has proven to be most effective. Thanks to our prudent fiscal management, at the end of 1997, Hong Kong's foreign reserves, which includes our 'fiscal reserve', stood at US$92.8 billion -- the third largest in the world. These huge reserves provide not just 100% backing, not just 200% backing, but 800% backing for the currency. Although we do not wish to engage in competitive devaluation, I want to assure you that we are conscious of our high costs. Indeed, we know runaway high costs will, in the long run, hurt and stifle our economic growth. In fact, over the past few years, consistently close to double-digit inflation, high salary increases, and unrealistic property values have begun to threaten our future economic vitality. To tackle these problems, I announced a series of measures in my Policy Address on October 8 last year. However, because of our currency board system interest rates have been be pushed up automatically when the Hong Kong Dollar comes under attack. Interest rates, have thus, remained relatively high, even today. In this process, our economy has cooled down, our property and stock markets have softened very substantially from the peak. Although the markets have not totally settled, and adjustment has been painful to many, I believe essential structural changes are taking place very rapidly. And from a cost point of view, Hong Kong will begin from a much lower base once recovery starts. Indeed, we are not allowing the Asian financial turmoil to derail our long-term focus of building a Hong Kong which is fair, free, prosperous and economically competitive. Because of our very strong economic fundamentals we are able to continue with our massive plan of investment in infrastructure and education which will make Hong Kong much more efficient and competitive in the 21st Century. Indeed, despite the turmoil around us, we continue to build and invest for the future. I would like now to speak briefly about China. Let me first say that I have come here not as a spokesman for China. My task is to speak for Hong Kong. But I am Chinese, and like you, our patriotic feeling is something very natural to us. We were saddened by China's past humiliations, and rejoice now in her improving fortune. And also importantly, China is our sovereign power. Your perceptions of China, and French's relations with China, have a great impact on us. Many in the West today tend to define China through specific human rights terms. Others feel a sense of threat in China's rising prosperity. We in Hong Kong feel differently. What is happening in China is not a change to a monolithic giant, but a transformation of the lives of millions of men and women. They are being lifted out of poverty, and given opportunities that they never had before. The scale of transformation surpasses anything that has ever happened to men and women like ourselves. It is a process that warms the heart of everyone concerned for basic human condition. At the 15th Party Congress held in September 1997 and the 9th National People's Congress now being held in Beijing, the vision for the 21st Century China has been clearly mapped out. The country is determined to continue the process of reform, particularly in banking sector and in the state enterprises. There is also commitment to reduce the size of the bureaucracy, to fight corruption and to continue the march towards a free market economy. In a book published by the World Bank entitled 'China 2020' it is projected that China may become the 2nd largest economy in the world by that time. The question has often been asked: "Will China need to depreciate its currency, the Renminbi." Let me give you some financial data which you may find interesting. In 1997, China's growth in exports was 20.9%, recording a trade surplus of US$40 billion. Its current account surplus was 0.9% of GDP and its foreign currency reserves stood at US$140 billion, the second highest in the world. In 1997, China's GDP grew at 9% and its inflation grew at 2.8%. Its fiscal deficit was at 0.8% of GDP. Its total domestic debt was less than 20% of GDP. Indeed, if you look at these figures, China also meets all the Maastricht criteria. I believe China will continue to be competitive. Even after the marked depreciation of the Asian currencies, labour costs in the Mainland of China are still lower than most Asian economies. On the other hand, the effect of devaluation on the other Asian economies is likely to lead to higher inflation, higher import costs and higher interest rates which will push up manufacturing costs. Hong Kong and mainland China, today, serve as a anchor for stability in Asia. In the longer term, I know China will march from strength to strength and I am convinced that the region will emerge from the turmoil and become even more successful than before. Most of the Asian countries are at a developing stage and will remain so for some time, but with its huge population, high savings rate and thirst for infrastructure developments, Asia can become one of the world's largest capital providers, borrowers, as well as largest consumer markets. The depth of economic opportunities in the coming decades in Asia in general, and China in particular, for France and indeed the rest of the world, is staggering. And where can the French business community best capitalise on such opportunities? What do you expect me to say except where else but Hong Kong, the natural gateway to China and the Asia Pacific Region. Hong Kong and France have a very close relationship. This is seen every day in our shops and restaurants where fine French wines, champagnes and cognacs are in demand. French perfumes, leather goods and the latest fashions have always been favourites in Hong Kong. Truly, the Hong Kong-France relationship is important. In 1997, France was our 10th largest trading partner in the world, and our third biggest trading partner in the EU. The French presence in the SAR is quite significant - some 450 companies, of which 100 have established regional headquarters or offices in Hong Kong. They are active in many sectors, especially trading and finance. There are, for example, 17 French banks operating in Hong Kong. With the future of Hong Kong assured, I feel it is time to rethink the scope of the French-Hong Kong partnership. To think bigger. If there has been any change at all in Hong Kong since the Handover, it is in the mindset of our people. Hong Kong is no longer an enclave economy with an artificial and psychological barrier created by the date of June 30, 1997 and the border between Hong Kong and the mainland of China. Tens of thousands of Hong Kong people who have previously migrated overseas are returning home each year. They feel the pride, they sense the opportunity and they want to participate in building a better tomorrow. They also bring new skills and experiences to enrich our economy. Yes, our people are thinking longer term at how to expand into higher value added activities - and at forming strategic partnerships to make this happen. Hong Kong has been enriched over many decades by different ideas and cultures, blending the best of East and West. France has contributed greatly to this process. People from all over the world feel at home in Hong Kong. It is more than the prospect of making money - the deeper attraction is Hong Kong, itself. In short, the Hong Kong SAR is poised to reach even greater heights as the new century unfolds. I am proud and privileged to lead it. And I invite even greater participation from French business in our continued success. Thank you. End 8. CE's speech in Frankfurt ************************ Following is the speech by the HKSAR Chief Executive, Mr Tung Chee Hwa, at the Hong Kong Trade Development Council luncheon in Frankfurt, Germany, on March 10, 1998. Mr Eichel, Ms Roth, Victor, distinguished guests, ladies and gentlemen, I am delighted to be here in Frankfurt. It is a great honour for me to be standing before such a distinguished gathering. I am most grateful to the Hong Kong Trade Development Council for organising this luncheon. 1997 was an extraordinary year for Hong Kong. July 1st saw the smooth and seamless return of Hong Kong to China, thereby ending 157 years of colonial rule. Indeed, the people of Hong Kong had looked forward to this great occasion with immense pride; pride in that we were at last reunited with our own country, and have become masters of our own destiny. 1997 was also an extraordinary year for Asia at large. Buoyed by years of continuous growth and prosperity, the region seemed ready to shrug off numerous structural weaknesses and continue its march into the next century. Six months ago, these structural weaknesses of selected Asian nations triggered a financial crisis that reverberated around the world. I would like to take this opportunity today to tell you how well Hong Kong has done, as part of China and under the 'one country, two systems' concept. I will talk about the Asian financial turmoil and its impact on Hong Kong. In the process, I will also discuss the economic development in China. Finally, I want to talk about our bilateral relationship, and just how important Germany is to Hong Kong. Hong Kong has indeed been moving forward with pride and confidence since the successful reunification. Even though the euphoria has been somewhat dented by the economic downturn as a result of the Asian financial turmoil, hope remains high in Hong Kong. It is not surprising that many of those who have visited Hong Kong since the Handover share our confidence and enthusiasm. Let me quote Mr James Wolfensohn, President of the World Bank, who said in his concluding remarks at the World Bank/IMF annual meetings held in Hong Kong last September: "Seeing this region and seeing Hong Kong, the 'one country, two systems' is certainly something that we can now believe and I think it served as a very reassuring message to all of us that Hong Kong will continue as it has before." Furthermore, it is very encouraging to see the results of the latest survey by the German Industry and Commerce in Hong Kong, which showed that 83% of the German companies responding had not noticed any significant change in the investment climate since the Handover. It is particularly worth noting that the survey was conducted recently, at the height of the Asian financial turmoil. What makes us so confident in managing our future? The ultimate source of our confidence is, of course, the solid promises of our Basic Law. It is a comprehensive document that was drafted by people from both Hong Kong and mainland China after some four years of consultation and discussion. The Basic Law provides a constitutional framework for the Hong Kong Special Administrative Region. It institutionalises the concept of 'one country, two systems'. It clearly prescribes that the social, economic and political systems in Hong Kong will be different from those in the mainland of China. It protects the rights, freedoms and lifestyle of Hong Kong people. The Basic Law guarantees the independence of our judiciary and, apart from foreign affairs and defence, it gives us full responsibility to manage our own affairs. It allows us complete financial autonomy, and the independence of our monetary system. It establishes Hong Kong as a separate customs territory, and enables us to work directly with the international community to control trade in strategic commodities, drugs, illegal transhipments, and to protect intellectual property rights. It should be remembered that the 'one country, two systems' did not originate in London or Hong Kong. It was a concept developed by China. The reason is simple: by preserving and further enhancing the success of Hong Kong, we can contribute towards the continued modernisation of China. In addition, we can demonstrate the feasibility of different social, economic, and political systems operating within one country. Success in Hong Kong will also represent a significant step towards the greater and final objective of re-unification of the entire nation. These are major objectives for China. Therefore, it is clearly in the fundamental, national interest of China as a nation that the 'one country, two systems' concept be successfully implemented. Since July 1, we in Hong Kong have been administering our own affairs. We are also carrying on with the development of democracy in Hong Kong. Our constitutional document, the Basic Law, requires us to develop our democratic institutions: our commitment as a society is to do the same. The Basic Law has set out a 10-year timetable for elections both for the Chief Executive and for the Legislature. On May 24, the elections for the first full Legislative Council will be held. Members of all political parties and independent individuals are welcome to take part. Every adult permanent resident is eligible to vote and there are currently some 2.8 million registered voters. This first full legislature will have 60 elected members - 20 will be directly elected, 30 indirectly elected through functional constituencies and the remaining 10 indirectly elected through an Election Committee. The second legislature will be elected for a four-year term in the year 2000, when the number of directly-elected seats will increase to 24. The third legislature, to be elected in 2004, will have 30, or 50% of the seats, directly elected. In seven years' time, we will have more democracy in the legislature than we ever had in 156 years of colonial rule. As you may know, Hong Kong never had a single voice in the selection of the Governor during colonial rule. Under the Basic Law, Hong Kong people will have an increasingly larger voice in the selection of the Chief Executive. I myself was elected in December last year by a committee of 400 people from many walks of life, including businessmen; professionals such as doctors, lawyers and architects; labour unionists, social workers, politicians; and religious leaders of different beliefs. The second Chief Executive, serving from 2002 to 2007, will be selected by a similar committee, except that it will be enlarged to 800 people. In fact, the process of democratic evolution in the next decade will be far more comprehensive and far- reaching than what we had under 156 years of colonialism. And what will happen after 2007? The Basic Law provides that further democratic evolution will depend on the wishes of Hong Kong people and the overall environment at that time, with universal suffrage being the ultimate objective. Is a period of 10 years too long for this evolutionary process? Let me make a point of history about democratic development. In the US it took 182 years to achieve full, universal suffrage for everyone 18 and over. In Belgium it took 150 years and in France it took 126 years. So, is a period of 10 years too long for process that is critical to Hong Kong's future, a process the success or failure of which we in Hong Kong, and no one else, will bear the full consequence? I appreciate that this may be an issue of concern here and elsewhere. However, let me emphasise this point - at the end of the day, we must move forward in what we, the people of Hong Kong, think is in the best, long-term interest of the Hong Kong SAR. And I know you would expect me to do no less. Let me now talk about the Asian financial turmoil, how and why it happened, and in my view, how it will eventually be played out. And, how has the turmoil affected Hong Kong. Let me paint you a broad perspective. In July, Thailand abandoned its peg to the US Dollar and in less than eight months, three of the 'Asian Tigers' were brought under the care of the IMF, with more than US$100 billion mobilised for their rescues. The ferocity and speed of the contagion were unprecedented, unleashing what the Managing Director of IMF, Michel Camdessus, has called 'the first global financial crisis of the 21st Century'. The origins, causes and effects of the Asian crisis are complex, but the broad problems are fairly well known. In those countries which have been badly affected, it was a combination of private sector over-borrowing, inadequate bank regulation, poor risk management and tragic policy errors at the corporate and banking levels, both national and international. The growth of derivatives and modern information technology also contributed to the speed of the contagion. Certainly, the governments involved did not have sufficient sound macro-economic policies which took into account the new global, economic, financial and competitive environment. Economies were overstretched in the pursuit of high growth, not totally aware of the pitfalls of global financial flows. The fact is, there are enormous benefits from financial liberalisation but such liberalisation must be built on a robust financial system in order to cope with associated volatility in the financial markets. The tidal wave that swept Asia has been devastating, and has sent ripples across the globe. But I must emphasise that Asian economies are not all the same. Those economies that have sound fundamentals, credible policies and low leverage, such as China, have succeeded in weathering the storm. Those with free markets, strong regulations, rule of law and stringent fiscal discipline, such as Hong Kong and Singapore, have passed the test of fire. When will the Asian financial crisis end? I see a number of key factors affecting the pace of recovery: First, there are clear signs that the Asian economies are generating trade surpluses, instead of trade deficits. Second, the financial situation in Korea has stabilised because the world finally realised that financial crises cannot be solved by official funds alone, but a combination of IMF funding and conditionality, plus voluntary rollovers provided by international banking institutions. This appears to be the right way forward. Third, as the largest economy and financial powerhouse in Asia, Japan must maintain positive growth and stability in the yen. Fourth, the international financial and economic environment must remain stable. Both American and European stock markets are now reaching record highs, and everyone hopes that there will not be further shocks emanating from the large markets on the smaller emerging markets. Fifth, both mainland China and Hong Kong will maintain stability in the RMB and Hong Kong Dollar as the anchors of currency stability in Asia. I will address these two specific issues later on in my speech. Finally, Asian economies must maintain their resolve and determination to restructure and reform with the help of the IMF and other multilateral agencies. Throughout the Asian financial turmoil, there is now greater recognition in Asia that global financial markets have changed the world, and that there is a need for more balanced growth, with better risk management. We need better banks, more efficient financial markets, and greater transparency and disclosure for markets to work efficiently. We particularly need social stability, strong and accountable governments with sound macroeconomic policies. The financial crisis in Asia has been painful to us all. But the fundamentals of Asia have not changed. We still have the young and flexible workforce, the high savings rate, openness to trade and ideas and an indomitable will to improve ourselves. Some glaring uncertainties, particularly those in Indonesia, still need to be resolved, but I would expect the Asian crisis to bottom out in a year or two and we shall then witness a slow but sure road to recovery. Let me also point out that the recent Asian financial crisis is a new phenomenon brought about by an increasingly open global financial market system. The existing international and multinational structure for international trade and finance designed some 50 years ago needs to be upgraded to suit the new environments of 21st Century. In this regard, Hong Kong fully supports calls for global efforts to design a new international financial architecture. Now, let me say a few words on Hong Kong. Over the past decades, Hong Kong has achieved, in every respect, most enviable success. At US$25,000, our GDP per capita is the second highest in Asia. We have the busiest and most efficient container port in the world and also the third busiest passenger airport in the world. We are probably the most successful financial centre in Asia. All this has been achieved because of the hard work and entrepreneurial spirit of the people of Hong Kong. This has also been made possible because of the 20 years of rapid and successful economic development in the mainland of China, which has given our economy boundless opportunities to move forward. What's more, we practise sound macro-economic policy of small government, with strong support for the free market. With our strong commitment to prudent financial management, we have consistently been able to achieve budget surpluses averaging 2% of GDP per annum. For the current fiscal year ending this month, our budget surplus is an astounding level of 5.8% of our GDP. We have a flexible and efficient economy and nowhere is this better seen than in the labour market, which has faced massive changes over the past decade as manufacturing processes were relocated into the southern parts of China. Employment in the manufacturing industry declined from 870,000 in 1986 to 310,000 by September 1996 - a 65 per cent drop. Elsewhere this would have caused a jump in structural unemployment and calls for government intervention. But in Hong Kong, our flexible workforce has been so successfully relocated to service industries that our unemployment rate has remained at a low 2 to 3 per cent throughout. Our robust financial system and monetary management mechanism, modern and prudent supervision as well as sophisticated financial infrastructure provide us with the foundations for a stable exchange rate. Our banking system is strong, with capital adequacy ratios of locally incorporated banks averaging 17% and bad debt ratios of less than 2%. We have a low, consistent and simple tax structure, an open and accountable government, and a lean and corruption free civil service. Most importantly, we believe strongly in upholding the rule of law. Many have questioned the need for us to maintain a fixed exchange rate policy. The fact is, Hong Kong is a highly externally-orientated economy. Almost all our daily needs are imported. Almost all our manufactured products are exported. Furthermore, we are very much an entrepot, handling a large volume of re-exports. Our service industries are also very externally orientated, providing financial and other services for the region, particularly China. The total value of our trade in goods and services in a year is equal to well over 250% of our GDP. Business engaged in these externally orientated economic activities want certainty in exchange rates. Many have questioned whether we need to devalue the Hong Kong Dollar. Indeed, people ask how can we remain competitive with the rest of Asia where currencies have depreciated so much. I do not believe we need to devalue the Hong Kong Dollar. It is not in Hong Kong's interest to do so. The fact is that close to 85% of our GDP is generated by the services sector. In that, competitiveness is not just about the cost but about other important factors, such as the need for the rule of law, a corruption free society and predictable government policies which put investors, local and international alike, as ease. Competitiveness is also about the quality and creativity of the people. In these areas, what we have in Hong Kong, few others in Asia can match. Indeed, since 1983, Hong Kong, in order to ensure currency stability, has been operating under a currency board system which provides full US Dollar backing for our currency. In the recent round of attacks on the Hong Kong Dollar, the currency board system has proven to be most effective. Thanks to our prudent fiscal management, as the end of 1997, Hong Kong's foreign reserves, which includes our 'fiscal reserve', stood at US$92.8 billion -- the third largest in the world. These huge reserves provide not just 100%, not just 200%, but 800% backing for the currency in circulation. The stability of the Hong Kong Dollar has been a pillar of strength in Asia and was described in the Wall Street Journal in January as ".. the dam that prevents Asia's crisis from inundating other emerging markets and possibly even the world's major ones". We perform this role not just for our neighbours, but because we believe it is the right thing to do for Hong Kong. Although we do not wish to become more competitive through devaluation, I want to assure you that we are conscious of our high costs. Indeed, we know runaway high costs will, in the long run, hurt an stifle our economic growth. In fact, over the past few years, consistently close to double-digit inflation, high salary increases, and unrealistic property values have begun to threaten our future economic vitality. The SAR Government is extremely mindful of this. To tackle these problems, we have planned a series of measures which were announced in my Policy Address delivered on October 8, last year. However, because of the currency board system we operate, interest rates will be pushed up automatically if the Hong Kong Dollar comes under attack. As a result of several attacks on the Hong Kong Dollar in the past four months, interest rates have gone up and have remained relatively high, even today. In this regard, the Asian financial turmoil has had some positive impacts on Hong Kong. Our economy has cooled down, our property and stock markets have softened very substantially from the peak. Although the markets have not totally settled down, and adjustment has been painful to many, I believe essential structural changes are taking place very rapidly. And from a cost point of view, Hong Kong will begin from a much lower base once recovery starts. Indeed, we are not allowing the Asian financial turmoil to derail our long-term focus of building a Hong Kong which is fair, free, prosperous and economically competitive. Because of our very strong fiscal reserves of HK$450 billion (about DM107 billion) - there is no government debt - and with a budget surplus of 5.8% of our GDP in the current year, we are able to, through the budget just announced, continue with our massive plan of investment in infrastructure and education which will make Hong Kong much more efficient and competitive in the 21st Century. We can do all that, and still expect to achieve a budget surplus for the year. Indeed, despite the turmoil around us, we continue to build and invest for the future. I would like now to speak briefly about China. Let me first say that I have come here not as a spokesman for China. My task is to speak for Hong Kong. But I am Chinese, and like you, our patriotic feeling is something very natural to us. We were saddened by China's past humiliations, and rejoice now in her improving fortune. And also importantly, China is our sovereign power. Your perceptions of China, and German's relations with China, have a great impact on us. Many in the West today tend to define China through specific human rights issues. Others feel a sense of threat in China's rising prosperity. We in Hong Kong feel differently. What is happening in China is not a change to a monolithic giant, but a transformation of the lives of millions of men and women. They are being lifted out of poverty, and given opportunities that they never had before. China's life expectancy rate, child mortality rate as well as adult literacy rate have improved significantly. The percentage of people living at or below subsistence level in China has decreased from 33 per cent in 1979 to single-digit levels today. The scale of transformation surpasses anything that has ever happened to men and women like ourselves. It is a process that warms the heart of everyone concerned for basic human condition. Yes, China has undergone dramatic changes since she opened up to the outside world in 1978. Her achievements are for everybody to see. This is a tribute to the vitality and energy of the Chinese people and the vision of China's leaders, who have guided these developments. At the 15th Party Congress held in September 1997 and the 9th People's Congress now being held in Beijing, the vision for the 21st Century China has been clearly mapped out. The country is determined to continue the process of reform, particularly in banking sector and in the state enterprises. There is also commitment to reduce the size of the bureaucracy , to fight corruption and to continue the march towards a free market economy. In a book published by the World Bank entitled "China 2020" it is projected that China may become the 2nd largest economy in the world by that time. The question has often been asked: "Will China need to depreciate its currency, the Renminbi." Let me give you some financial data which you may find interesting. In 1997, China's growth in exports was 20.9%, recording a trade surplus of US$40 billion. Its current account surplus was 0.9% of GDP and its foreign currency reserves stood at US$140 billion. In 1997, China's GDP grew at 9% and its inflation grew at 2.8%. Its fiscal deficit was at 0.8% of GDP. Its total domestic debt was less than 20% of GDP. Indeed, if you look at these figures, China also meets all the Maastricht criteria which have been laid down for the introduction of European monetary union. I believe China will continue to be competitive. The competitiveness of China is based on broader structural factors including underlying factor costs, market leadership and the trade policies of major importers. Even after the marked depreciation of the Asian currencies, labour costs in the Mainland of China are still lower than most Asian economies. And in China there is continues access to a huge labour pool made up of redundant state sector workers and surplus labour in rural areas. The effect of devaluation on the manufacturing costs in the Asian economies is likely to lead to higher inflation, higher import costs and higher interest rates. China has established market leadership in a variety of products. It is difficult to see this dominant position being significantly eroded particularly with the existence of internationaltrade barriers which limit the extent of the possible shift of export orders from China to other Asian economies. Hong Kong and mainland China, today, serve as a anchor for stability in Asia. In the longer term, I know China will march from strength to strength and I am convince that the region will emerge from the turmoil and become even more successful than before. Most of the Asian countries are at a developing stage and will remain so for some time, but with its huge population, high savings rate and thirst for infrastructure developments, Asia can become one of the world's largest capital providers, borrowers, as well as largest consumer markets. The depth of economic opportunities in the coming decades in Asia in general, and China in particular, for Germany and indeed the rest if the world, is staggering. And where can the German business community best capitalise on such opportunities? Where else but Hong Kong, the natural gateway to China and the Asia Pacific Region. Hong Kong and Germany have a very close relationship. This is symbolised every day on the street. Hong Kong has the second highest market share in the world with 12% of total number of private cars on the roads carrying the famous Mercedes Benz marque. At the same time, there is a growing number of BMWs on the roads, not simply because BMW has become the official car for most of our senior government officials. Truly, the Hong Kong-Germany relationship is important. In 1997, Germany was our 6th largest trading partner in the world, and our biggest trading partner in the EU. In 1997, German-Hong Kong trade amounted to HK$95.2 billion (DM22.6 billion). Hong Kong is an important entrepot for trade between Germany and China, which last year totalled HK$98.1 billion (DM23.4 billion) and of which HK$56 billion (DM 13.3 billion) worth was routed through Hong Kong. The German presence in the SAR is quite significant - some 460 companies - 130 of which have established their regional headquarters or offices in Hong Kong. They are active in every sector from manufacturing to services, particularly in banking where 10 licensed banks operating in the territory have German interests. Unfortunately, the number of German visitors to Hong Kong last year was down by 15% to 235,000. But with new competitive packages being offered by the tourism industry, and initiatives in our budget, we hope the figure will show positive growth in the years to come. With the indomitable spirit of the Hong Kong people, and a strong commitment from the leadership of the Central People's Government to the full implementation of the 'one country, two systems' concept, Hong Kong's future is assured. I feel it is time to rethink the scope of the German-Hong Kong partnership. To think bigger. At a time when Hong Kong is now part of China but moving forward under 'one country, two systems'. At a time when China is moving forward into the future with a clear vision to become an economic powerhouse. At a time when the 'Euro' is becoming a reality, when Europe is expanding eastward, when Germany surely will be playing a leading role, it will be very important for Hong Kong to be sure that our relationship with Germany is as strong as ever. And, of course, it is important to also notice that Frankfurt in the years ahead will, like Hong Kong, become a leading financial centre in Europe. With all that it is really necessary for us at Government level to rethink how much more we can do to encourage the private sector of both sides to come together at even greater speed to co- operate with each other. If there has been any change at all in Hong Kong since the Handover, it is in the mindset of our people. Hong Kong is no longer an enclave economy with an artificial and psychological barrier created by the date of June 30, 1997 and the border between Hong Kong and the mainland of China. Tens of thousands of Hong Kong people who have previously migrated overseas are returning home each year. They feel the pride, they sense the opportunity and they want to participate in building a better tomorrow. They also bring new skills and experiences to enrich our economy. Yes, our people are thinking longer term at how to expand into higher value added activities - and at forming strategic partnerships to make this happen. Hong Kong has been enriched over many decades by different ideas and cultures, blending the best of East and West. Germany has contributed greatly to this process. People from all over the world feel at home in Hong Kong. It is more than the prospect of making money. The deeper attraction is Hong Kong, itself. In short, the Hong Kong SAR is poised to reach even greater heights as the new century unfolds. I am proud and privileged to lead it. And I invite even greater participation from German business in our continued success. Thank you. End 9. High-powered committee to promote fire safety ********************************************* A multi-pronged approach will be adopted in tackling the problems associated with building safety and fire safety, the Central Steering Committee on Fire Safety (CSCFS) decided during its inaugural meeting today (Wednesday). Comprising seven unofficial members and eight heads of government bureaux and departments, or their representatives, the Committee was tasked with promoting and co-ordinating work relating to fire safety in the districts. The Secretary for Home Affairs, Mr David Lan, who chaired the meeting, said: "The CSCFS has taken an in- depth look into the main contributing causes of fires which have taken an unacceptable toll in terms of human lives and property damages and decided that only a multi- facet approach involving both the building owners and occupiers on the one hand and the Government on the other will be effective. "In the near term, we are recommending a series of concerted inter-departmental clearance operations to remove fire hazards including obstructions from means of escape. Apart from their intrinsic positive publicity value, these operations will also result in clear and unobstructed escape routes in those buildings. They will no doubt be welcomed by the owners, tenants and the neighbourhood. "In the long term, however, we may have to consider proposals to make it incumbent upon building owners and occupiers to undertake fire safety improvement works; and the possibility of making it mandatory for the establishment of some mechanisms such as the formation of Owners' Corporations (OCs) and/or the appointment of professional estate management companies," Mr Lan said. "However, the legal implications and feasibility of introducing these long-term measures on a mandatory basis are still being examined," he added. The other major component which the CSCFS endorsed to upgrade building management is public education and involvement. On the public education front, it will be spearheaded by a $2 million Fire Safety Campaign to be launched by the Information Services Department. To gain greater public support and understanding, the Committee gave its full support to the Fire Services Department's Fire Safety Ambassadors Scheme. "It will provide good civic education experience for the Ambassadors, who will be asked to give assistance and support in spreading fire safety messages and perhaps help reporting potential fire hazards. The Committee will decide how to proceed with implementing the Scheme in its next meeting," Mr Lan said. Explaining the need for and importance of public involvement and education, Mr Lan said: "The biggest problem of existing buildings is that the fire safety measures often deviate from their original state after occupation permit was issued. Certain deviations are minor defects which may be inevitable as the materials deteriorate with age. Other deviations are the result of unauthorised alterations to the original building works. "In addition, there are non-compliance with the required operational conditions of fire safety devices such as fire doors being wedged open, fire fighting equipment not in satisfactory conditions, etc. Therefore, the crux lies in the maintenance and management of existing buildings in order to keep every part of the physical building works in an acceptable condition," Mr Lan said. He stressed the importance of involving the tenants and owners in enforcing an effective programme of building management. "It is in the routine inspection of fire safety provisions where the building occupants can and should contribute to the solution of fire safety problem. It is only practicable and effective that these inspections are carried out by the residents themselves," Mr Lan explained. "Relevant departments, including Buildings Departments, Fire Services Department and Electrical and Mechanical Services Department, will draw up a standard list of inspection items in simple layman terms to facilitate the inspections," he added. Mr Lan also reminded the public that one of the most effective, although not the only one, ways of improving building management is the formation of efficient OCs or other similar bodies. End 10. Results of avian flu case-control study *************************************** The results of a case-control study conducted on flu A (H5N1) in Hong Kong found that visiting poultry stalls in the one week before becoming ill was the strongest risk factor. The study was jointly carried out by the Department of Health, Hong Kong and the Centres for Disease Control and Prevention in Atlanta (CDC). Releasing the results today (Wednesday), a spokesman for the Department of Health said the findings so far suggested that the transmission of the virus, regardless of the modes, continues to be inefficient. He said that the case-control study was aimed at comparing different exposure risk factors between patients and controls. It covered a number of areas including live poultry exposure, exposure when preparing food, food eaten during the week before onset and human illness exposure during the week before onset. The strongest risk factor identified is visiting poultry stalls in the one week before becoming ill. This supported earlier findings that human-to-human transmission of the disease is inefficient, the spokesman added. The results of this case-control study would also be presented by CDC today (Wednesday) at a session of the International Emerging Infectious Disease Conference held in Atlanta, USA. The spokesman said that there were 18 confirmed flu A (H5N1) cases in Hong Kong, and that the onset day of the last case was December 28, 1997. He noted that a 24-year-old female patient is still under treatment and in stable condition while 11 others have been discharged after recovery. Six people died of the disease. End 11. 28 to run for conduct council seats *********************************** The Education Department has received a total of 28 nominations in the third election to the Council on Professional Conduct in Education (CPCE). They comprise 16 nominations for organisation- nominated seats and 12 for teacher-nominated seats. Out of the 28 seats of the council, there are four elected seats in the teacher-nominated categories which will be left vacant during the coming term because no nominations have been received. The Director of Education will appoint the Assistant Director of Education (Services), Mr Chong Kwok-kit, and two lay members to the council, making a total of 24 members in the coming term. Voting for the teacher-nominated categories will take place at schools on April 22, 1998. Vote-counting for organisation-nominated categories will be conducted on April 24, 1998. All full-time registered teachers, permitted teachers and Government school teachers are eligible to vote. Details about election procedures will be sent to schools and organisations shortly. End 12. Inaugural issue of HKMC Notes well received ******************************************* There was very good market response to the tender today (Wednesday) for the inaugural 3-year Notes issued by the Hong Kong Mortgage Corporation (HKMC) under the Note Issuance Programme arranged by the Hong Kong Monetary Authority (HKMA). The 3-year Notes, which carry a coupon rate of 8% per annum, were 5.44 times over-subscribed. The average accepted tender price was 99.33, providing an annualised yield of 8.43%, or about 52 basis points above that for the 3-year Exchange Fund Notes issued by the HKMA. "The tender results for the Note are very encouraging. There is certainly a strong market appetite for fixed rate paper issued by the HKMC," said Mr Peter Pang, Chief Executive Officer of the HKMC. "The narrow spread between the yield of our paper and that of the Exchange Fund Notes clearly demonstrates the high credit standing of the HKMC," he added. The HK$500 million issue is the first tranche of the HK$20 billion HKMC Note Issuance Programme for which the HKMA acts as the arranger, custodian, agent and operator. The Programme is an important vehicle for the HKMC to raise funds to support its mortgage purchase programme. It will also provide a useful benchmark for other debt securities the HKMC will issue in future. The HKMC Notes, which are denominated in HK$50,000, will be cleared through the Central Moneymarkets Unit (CMU) and will qualify as eligible securities for repo under the Liquidity Adjustment Facility operated by the HKMA. The HKMC Notes will also be covered by the existing market-making arrangements for the Exchange Fund Bills and Notes. End 13. Hong Kong Monetary Authority tender results ******************************************* Tender date : 11 March 1998 Paper on offer : HKMC Notes Issue number : S301 Issue date : 12 March 1998 Maturity date : 12 March 2001 Coupon : 8.00 PCT Amount applied : HK$3,222 MN Amount allotted : HK$500 MN Average price accepted (yield) : 99.33 (8.43 PCT) Lowest price accepted (yield) : 99.10 (8.52 PCT) Pro rata ratio : About 71 PCT Average tender price (yield) : 98.49 (8.77 PCT) End 14. The weather of February 1998 **************************** February 1998 was wetter and warmer than normal. The monthly rainfall of 153.7 millimetres, about three times the normal figure, was the sixth highest for the month. The mean temperature was 1.3 degrees higher than normal though the total duration of bright sunshine was only 56.4 hours, 41.3 hours less than the usual amount. The accumulated rainfall since January 1 was 202.6 millimetres and ranked the eighth highest for the two- month period. It was cloudier than normal with the monthly mean cloud amount of 86 per cent which was 13 per cent higher than normal. The month also saw occurrences of thunderstorm, fog and hail on a few occasions. The weather started fine on the first day of the month. It turned cloudy with light rain patches in the evening. A cold front crossed the coast of Guangdong early on February 4 bringing colder air to Hong Kong. Winds strengthened from the north and the weather remained cloudy with more rain. Temperatures dropped to 8.9 degrees, the lowest in the month, on 5 and also on 6 February. Winds moderated on February 5. Clouds cleared on February 7 and generally fine and sunny weather prevailed for the next few days. Rainy and cloudy weather returned on February 13 together with morning mist occurring in the harbour. A cold front crossed the South China coast in the early afternoon on February 14 clearing the mist. However it also brought along showers and thunderstorms on February 14 and 15. Under the influence of a maritime airstream, fog occurred in the harbour on February 16 and 17. Sea traffic was affected by low visibility. Two cargo vessels collided off Cha Kwo Ling early on February 16. A cold front crossed Hong Kong on the afternoon of February 17 resulting in heavy showers and squally thunderstorms. About 100 millimetres of rainfall were recorded in Cheung Sha Wan and Sha Tin. Hail was reported in Tuen Mun, Tsuen Wan, Kam Tin, and also the northern and eastern parts of Kowloon. The size of the hailstones varied from 0.5 to 3 centimetres. In Cheung Sha Wan, the collapse of a scaffolding in gusty winds damaged seven cars. Thundery showers continued the next day and hail was again reported in eastern Kowloon and the southern and eastern parts of Hong Kong Island with hailstones of 0.5 to 2 centimetres in diameter. Showers let up on February 19 and temperatures rose to 26 degrees, the highest in the month, during the day. Mist and fog occurred again in the evening and persisted until the morning of February 21. Air traffic and ferry services to the outlying islands were affected. A cargo vessel collided with a fishing vessel in Tathong Channel. A cold front crossed the coast late on February 20. Winds strengthened from the north early next day and a scaffolding collapsed in Tseung Kwan O in the morning. It turned thundery again on the evening of February 22 and further hail reports were received from Hei Ling Chau, eastern Kowloon and Tseng Lan Shue. The size of the hailstones was about 0.5 to 1.5 centimetres. Apart from some sunny periods on February 25, cloudy weather with periods of rain prevailed for the rest of the month. Furthermore, winds strengthened from the northeast on February 28. During the month, no tropical cyclone occurred in the western North Pacific or the South China Sea. Details of the issuance/hoisting and cancellation/lowering of various warnings/signals in the month are summarized in Table 1.1. Monthly meteorological figures and departures from normal of February are tabulated in Table 1.2. Table 1.1 Warnings and Signals in February 1998 Beginning Time Ending Time Type of Warnings/Signals day/month hour day/month hour Strong Monsoon Signals 4/2 0600 4/2 1515 21/2 0910 21/2 1430 28/2 1030 28/2 1515 Flood Warning 17/2 1540 17/2 1915 Thunderstorm Warnings 14/2 0252 14/2 0752 14/2 1045 14/2 1445 15/2 1845 16/2 0600 17/2 0830 17/2 1030 17/2 1415 17/2 2115 17/2 2145 18/2 0645 18/2 0915 18/2 1630 22/2 2130 23/2 0600 Fire Danger Warning Yellow 8/2 0600 9/2 1000 Gas Water Heater Safety 4/2 1630 8/2 1630 Alert Table 1.2 Figures and Departures from Normal - February 1998 Meteorological Figure of Departure from normal Element the month above normal below normal Total Bright Sunshine Duration 56.4 ---- 41.3 (hours) Mean Daily Global Solar 7.11 ---- 3.58 Radiation (MJ/Square Metre) Total Rainfall (mm) 153.7 105.7 ---- Mean Cloud Amount (%) 86 13 ---- Mean Relative Humidity (%) 83 5 ---- Mean Daily Maximum Air 19.3 0.7 ---- Temperature (Degree Celsius) Mean Air Temperature 17.2 1.3 ---- (Degree Celsius) Mean Daily Minimum Air 15.2 1.3 ---- Temperature (Degree Celsius) Mean Dew Point (Degree Celsius) 14.3 2.5 ---- Total Evaporation (mm) 47.0 ---- 32.0 Remarks: All measurements were made at the Hong Kong Observatory except sunshine, solar radiation and evaporation which were recorded at King's Park Meteorological Station. End PROVISIONAL LEGISLATIVE COUNCIL MEETING SUPPLEMENT CONTENTS ======== 1. Policy for newly licensed foreign banks 2. Social workers registration progress 3. Environmental black spots in the New Territories 4. Electricity breakdowns in public hospitals 5. Water from Guangdong 6. Dismissal of students 7. Airport Core Programme contractual claims 8. Living arrangement of elderly CSSA recipients 9. Regulation of health food or slimming food 10. Exchange Fund Advisory Committee 11. Handling of persons receiving after-care services 12. Measures to help the elderly 13. Fundings by Finance Committee 14. Officers undertake comprehensive medical screening 15. Statistics on elderly waiting for residential care homes 16. Measures to prevent influenza 1. Policy for newly licensed foreign banks *************************************** Following is a question by Dr the Hon Law Cheung-kwok and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Provisional Legislative Council today (Wednesday): Question: Under the existing policy, foreign banks newly licensed to operate in Hong Kong are only allowed to open one regional office and one back office. In this connection, will the Government inform this Council whether it has reviewed the economic and financial implications of this policy on the territory; if so, what the findings are; if not, whether it will conduct such a review? Reply: The "one-building" condition attached to the authorisation of foreign banks was introduced in May 1978, at the same time as the moratorium on new banking licences for foreign banks was lifted. The condition restricts the business of a foreign bank in offices in only one building. We have kept this policy under constant review since its introduction in 1978. As a result of one of such reviews, the condition has been slightly relaxed in 1994 to allow these banks to maintain one back office and one regional office in different buildings in addition to their main office. This is to enable such banks to move certain functions away from the main office for, amongst others, cost reasons, thus increasing their competitive ability. We consider that the policy has served a prudential purpose and has not caused any economic or financial loss to Hong Kong. In fact, the Hong Kong banking sector has grown on the back of healthy competition between foreign and local banks since the 1980s. The reasons are as follows - (1) the objective of this policy is prudential in nature which is designed to avoid the danger of excessive competition in retail banking which may have a destabilising effect on the banking system. Given the size of the population and geographical area of Hong Kong, it is generally accepted that there is a very limited scope for further expansion of the already extensive branch networks of existing retail banks. As at end-1997, the 68 banks with branching rights were operating 1,511 branches in the territory. The total number of branches has increased only by 1.32% per annum in the past six years, reflecting the fact that the branching capacity of the territory has largely been saturated; (2) foreign banks licensed before May 1978 were not subject to the "one-building" condition. There are 37 banks falling into this category. This is more than the number of local banks which total 31. Many such foreign banks have become major players in the retail market. Furthermore, foreign banks have the option of entering the retail market by acquiring local banks. Many have done so. About half of the locally incorporated banks now have a substantial foreign bank shareholder. As such, the policy is not intended to protect local banks from competition with foreign banks; and (3) the "one-building" condition does not seem to have deterred foreign banks from applying for authorisation in Hong Kong. The number of foreign banks has increased from 67 in 1978 to 151 in 1997. Most of these new entrants are engaging in wholesale banking activities which do not require a branch network. Although the Hong Kong Monetary Authority (HKMA) does not have any immediate plan to conduct another review on this particular policy, the HKMA is commissioning a consultancy study to evaluate the strategic outlook for the banking sector over the next five years and to assess the impact on the banking industry resulting from developments such as increased globalisation of markets, increased competition, innovations in financial products and the advent of new technology. The study will also include an assessment of the costs and benefits of a number of regulatory features of the current system including the "one-building" policy. However, it does not mean that changes to the current regulatory system should, or will be made. Rather, the study will simply provide a coherent framework within which such changes might be made if this were thought to be appropriate on policy grounds. End 2. Social workers registration progress ************************************ Following is a question by the Hon Hui Yin-fat and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: Regarding the implementation of the Social Workers Registration Ordinance (the Ordinance), will the Government inform this Council: (a) whether it knows the total number of people in Hong Kong who are qualified for registration under the Ordinance; and among these people, the number of those: (i) who have already become registered social workers; (ii) whose applications for registration are being processed; (iii) who have not submitted their applications for registration yet; (b) of the existing posts in various government departments and public organizations which are categorized as social work posts as defined under section 2 of the Ordinance; and in respect of those who are currently holding such posts but have not yet applied for registration: (i) of the number of these people; (ii) of the reasons for their not submitting applications yet; (iii) whether they have breached sections 34 and 35 of the Ordinance; (iv) whether they will be suspended, or ordered to submit applications for registration, or rendered assistance to register according to the provisions of the Ordinance; if not, why not; and (c) in respect of people who are currently holding subvented social work posts in non-government organisations but have not yet applied for registration: (i) of the number of these people; (ii) of the reasons for their not submitting applications yet; (iii) whether their employment with the organisations will affect the latter's eligibility for and receivable amount of subvention; and (iv) whether the authority will actively assist them in completing registration expeditiously; if not, why not? Reply: The Social Workers Registration Ordinance which was enacted on May 1,1997 establishes the Social Workers Registration Board as an independent, statutory body to deal with the registration of social workers and certain other issues. As from January 16, 1998, all practising social workers are required to be registered. On the basis of information obtained from the Board, answers to the specific questions are as follows - (a) (i) Under section 17 of the Social Workers Registration Ordinance, a person may be considered by the Registration Board for registration if he holds a recognised qualification (including qualifications obtained overseas), or if he has occupied a social work post prior to March 31, 1982 and has accumulated at least 10 years of work experience in a social work post, or if he occupies a social work post or has been accepted for such a post and intends to obtain a recognised qualification within a reasonable period. In addition, the person must be a fit and proper person; ordinarily resident in Hong Kong; and not subject to any disciplinary order which precludes him from registration. Against these criteria, the Registration Board has, at the end of February 1998, registered 6,104 social workers. (ii) In addition, the Board has approved another 1,016 applications subject to payment of the registration fee, and is processing another 100 applications. (iii) There is no mechanism to assess the number of persons who hold recognised qualifications or who may satisfy all the other statutory conditions for registration. Therefore, the Board does not have information on the number of persons who have yet to submit applications. However, on the basis of known strength of those employed in the social work profession, we estimate that most, if not all, have submitted applications. (b) (i)&(ii) All 1,783 social workers (social work assistant or assistant social work officer and above) in the Social Welfare Department have been registered or applied for registration. There are 136 such social work posts in the Hospital Authority, which is the only public organisation with social work posts as defined under section 2 of the Ordinance. All posts are filled by registered social workers. (iii) If a person occupies a social work post as defined under section 2 of the Ordinance without having registered, he would be in breach of sections 34 and 35 of the Ordinance if he uses the description "social worker" or "social work" in carrying out his professional duties. (iv) It is now a prerequisite for all persons applying for social work posts in the Social Welfare Department or the Hospital Authority to be a registered social worker. As earlier stated, all present incumbents are registered or are in the process of completing registration. (c) (i) The subvention section of the Social Welfare Department will examine, in consultation with NGOs, whether there are social workers holding subvented social work posts in non-governmental organisations (NGOs) who have not yet applied for registration. (ii) Until the facts in (i) above have been established, it is not appropriate to speculate as to the reasons why individuals have not applied. (iii) Social Welfare Department informed all subvented NGOs in November 1997 that holders of subvented social work posts must be registered. NGOs are also required to recruit only registered social workers in future to fill subvented posts. Any expenditure incurred by NGOs in employing unregistered persons in subvented social work posts will not be recognised for subvention purposes. (iv) We have taken active steps to expedite the registration process and have introduced measures to simplify the registration procedures, particularly for those who have earlier participated in the voluntary registration scheme under the auspices of the Hong Kong Social Welfare Personnel Registration Council. Letters have been issued to Government Departments, NGOs and individual social workers working in these service units concerning the registration procedures. We have also made arrangements for social workers to make the statutory declaration regarding criminal conviction, as required under section 37(5) of the Ordinance, in any of the 54 Social Welfare Department offices. End 3. Environmental black spots in the New Territories ************************************************ Following is a question by the Hon Lau Wong-fat and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the expenditure incurred (including personal emoluments) in cleaning up environmental black spots in the New Territories each year since the establishment of the Task Force (Black Spots) (TFB) in the Lands Department in 1994, together with the area of land (in hectares) cleared by the TFB each year; (b) of the present establishment of the TFB; the respective posts in the TFB which have been established by the deletion of other posts in the Department and those that are new; (c) of the posts in the Department which have been deleted and their original duties; how these duties are being executed and whether they have been delayed as a result; (d) whether it has set any targets for assessing the effectiveness of the TFB; if so, what these targets are; and (e) whether it will consider reassessing the value of maintaining the TFB? Reply: Madam President, (a) The total expenditure incurred in cleaning up environmental black spots in the New Territories since the establishment of the Task Force (Black Spots) (the TFB) in Lands Department in 1994 to 1998, including personal emoluments, is $167 million. Since its establishment in 1994, the TFB has completed environmental improvement action on a total of 18 ha of government land and 56 ha of private land in three action areas. As projects tend to straddle over years, we do not have detailed breakdown on improvement works by year. (b) All the current 160 posts in the TFB were created on a temporary basis. None of them were created by the deletion of other posts in the Lands Department. (c) As no posts in the Lands Department were deleted to establish the TFB, no duties of the Lands Department have been affected. (d) The TFB was set up as one of the new initiatives under the 1993 Policy Address. In parallel, a Special Committee on the Cleaning-up of Black Spots in the NT (the SC) was set up to advise and monitor the work of the TFB to ensure the objectives are achieved. After having considered carefully the size and complexity of the problem, the SC endorsed a 10-year rolling programme to clean up black spots in major action areas. The programme maps out 11 actions areas for open storage and seven action areas for container related activities, and sets out specific tasks and time-table for each of the action areas. The TFB has been carrying out its work in accordance with the 10-year programme and the targets have largely been achieved on schedule. (e) The TFB was established in late 1994 initially for five years until 1999. The Administration is conducting a review of the TFB with a view to updating and refining its approach to dealing with environmental black spots in the NT in the light of the TFB's operational experiences. The review is scheduled to complete by mid 1998 and both the SC and the Legislative Council would be informed of the outcome in due course. End 4. Electricity breakdowns in public hospitals ****************************************** Following is a question by the Hon Chan Choi-hi and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: On the day the United Christian Hospital experienced an electricity breakdown, some of the emergency generating units also failed to work, therefore affecting the operation of many departments (including the intensive care unit) in the hospital. In this connection, does the Government know: (a) the causes of the electricity breakdown and the reasons for some emergency generating units failing to work at the same time; (b) the total number of electricity breakdowns in public hospitals over the past three years and the causes of these incidents; and (c) how the Hospital Authority ensures a stable supply of electricity in the hospitals under its management and whether it has formulated a code of practice regarding the inspection of electrical installations in hospitals; if so, what the details are? Reply : (a) After the breakdown in electricity supply in the United Christian Hospital (UCH) on February 23, 1998, the Hospital Authority (HA) invited the Electrical and Mechanical Services Department (EMSD) to look into the cause of the incident. The investigation revealed that a joint bolt connecting two busbar sections had not been properly tightened up and this gave rise to a burnt-out at the busbar joint. The burn-out subsequently caused the air circuit breaker to trip, cutting power supply to different service areas. Upon the power failure, the emergency generators immediately came into function and supplied electricity to the affected areas, except those areas providing only non- essential services which were not linked up to the emergency generators. The emergency supply also failed to reach the area immediately served by the failed busbar section, as the latter had already been burnt out. (b) According to HA, other than the above-mentioned case, there were five incidents of electricity failure in HA hospitals during the past three years, details of which are as follows - Year Hospital 1995 United Christian Hospital 1995 Grantham Hospital 1996 Kowloon Hospital 1997 Margaret Trench Medical Rehabilitation Centre 1997 Duchess of Kent Children Hospital These incidents were all caused by external electricity supply failure. The emergency generators in the above hospitals were activated immediately after the electricity interruption to provide standby power supply to the hospitals concerned. (c) To ensure stable supply of electricity, the hospitals conduct regular inspections and testings of their power supply and distribution systems, in accordance with a Code of Practice issued by EMSD, which sets out, inter alia, the accepted practices for inspection, testing and certification of fixed electrical installations. Following the investigation mentioned in paragraph (a), EMSD has made a number of recommendations on the maintenance of the electricity system in UCH, which will implement these recommendations. This apart, HA has also been conducting a comprehensive review of the electricity systems in HA hospitals to see if any improvements to the existing systems and maintenance programmes are required for the prevention of future occurrence of similar power breakdown. End 5. Water from Guangdong ******************** Following is a question by Dr the Hon Tso Wong Man-yin and a written by the acting Secretary for Works, Mr Lee Shing-see, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council of: (a) the annual expenditure of the Water Supplies Department on the treatment of raw water from Dongjiang River for use in Hong Kong in each of the past three years; the growth rates in the expenditure in real terms in this respect after inflationary adjustments; and (b) the impact brought about by the deteriorating water quality of Dongjiang River for use in Hong Kong on the local water treatment systems and water charges? Reply: Madam President, (a) The Water Supplies Department does not have a separate expenditure account for the treatment of water from Dongjiang or for the treatment of water from local catchments because both sources of water are often mixed before treatment. At present, the Dongjiang water meets about 80 per cent of Hong Kong's requirement, and the remaining 20% is to be met by rain water from local catchments. The direct expenditures on water treatment in the past three years are as follows: Expenditure on water treatment per cubic metre Financial Year of treated water Annual increase CPI(A) -------------- ---------------- --------------- ------ 1994/95 HK$0.078 - 8.1% 1995/96 HK$0.085 9% 8.6% 1996/97 HK$0.089 4.7% 4.5% The year to year increase in expenditure for water treatment taking account of inflationary adjustments are considered reasonable. (b) Though the quality of Dongjiang water has shown trend of deterioration in recent years, it is still of acceptable quality and has not caused any major difficulty in water treatment. The treatment works in Hong Kong are certainly fully capable of treating it to comply fully with the World Health Organisation Guidelines for Drinking Water Quality, whereby, ensuring the treated water is safe to drink. As regards water charges, the expenditure on the treatment of raw water has all along been low (please refer to the figures shown in part (a)) and constitutes only a very small portion of the operation cost in water supply. The deterioration in the quality of Dongjiang water therefore does not have any impact on water charges. End 6. Dismissal of students ********************* Following is a question by the Hon Chan Choi-hi and a written reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Provisional Legislative Council today (Wednesday): Question: It is reported that there have been cases in which students with poor academic performance are advised by their schools to leave school on their own initiative so as not to affect the overall academic achievement of the schools. In this connection, will the Government inform this Council: (a) whether the Education Department has issued guidelines setting out clearly the criteria for schools to dismiss students or to advise students to leave; if so, of the contents of such guidelines and the measures in place to ensure compliance by schools; (b) of the total number of complaints received by the Education Department over the past five years about students being advised by schools to leave and the results of the investigations into these complaints; whether appropriate action, such as issuing warnings to the schools concerned in substantiated cases, have been taken; if so, of the number of schools concerned; and (c) how it ensures that similar cases will not recur in future? Reply: Madam President, My replies to the above questions are as follows: (a) The Education Department has always maintained that schools should be fully committed to teaching students according to their individual aptitudes and needs. In keeping with the spirit of providing education for all without discrimination, schools should give counselling to the students to help them overcome their learning or behavioural problems. In this respect, the stance of the Education Department is very clear and unequivocal. The Code of Aid explicitly states that schools shall not expel students on the ground that they are academically weak. No student shall be considered for expulsion except on the following two grounds: (i) the student deliberately fails to pay the gazetted fees; and (ii) the student commits a serious breach of school discipline and the school is unable, even after taking reasonable measures, to enlist the cooperation of parents. In these circumstances, schools are still required to follow proper procedures before expelling a student. They should make every effort to interview the parents. A warning letter should then be sent to the parents or guardians, and a full report should be submitted to the Director of Education for his/her consideration at the same time. Over the years, the Education Department has issued circulars to schools, reiterating that students with poor academic performance or behavioural problems should not be advised to leave school. Instead, schools should provide guidance and counselling services for students as far as possible to help them overcome their learning and behavioural problems. The latest such circular was issued on December 24, 1997. Staff of the Education Department have also reminded schools through different means and on different occasions that they should take positive action to help these students instead of advising them to leave school. If there are cases of students being advised to leave school for any reason, the Department will definitely follow up the cases concerned in order to protect the students' rights to receive education. (b) Cases of complaints about students being advised by schools to leave over the past five years are as follows: 1993 1994 1995 1996 1997 Number of schools 110 97 55 30 41 Total number of 383 388 227 83 102 students With the assistance of the Education Department, most of the students being advised to leave school have been able to continue their studies back in their original schools. Only a small number of them have to be transferred to other schools for individual reasons. The Department has already given verbal or written warnings to all the schools which have advised students to leave, reminding them to comply with the guidelines concerned and to bear in mind the spirit of education. (c) The Education Department will conduct thorough investigation into all cases of students being advised to leave school and will request the school management committees concerned to give a full account of each case. If necessary, the Department will issue warnings to the Headmasters and the school management committees. The Department will continue to remind all schools not to oblige their students to leave school or advise them to withdraw voluntarily. This will be done through circulars and seminars, as well as during school inspections. It will also continue to give support to schools to provide counselling services for students. Apart from encouraging schools to adopt the Whole School Approach to guidance and discipline, the Department will also advise them to liaise with external services agencies with a view to helping students resolve their learning and behavioural problems. End 7. Airport Core Programme contractual claims ***************************************** Following is a question by the Hon Eric Li and a written reply by the acting Secretary for Works, Mr Lee Shing-see, in the Provisional Legislative Council today (Wednesday): Question: According to the "Quarterly Report on Progress, Financing, Cost Estimate, Funding and Claims of the Airport Core Programme Projects" submitted by the Government to the Finance Committee of this Council, among the claims relating to the major Airport Core Programme construction contracts, 6,047 claims amounting to $2,865 million have been resolved, and 14,876 claims are unresolved. In this connection, will the Government inform this Council of: (a) the major reasons (such as design modifications, advancement or catching-up of project completion dates) for claims made by contractors with respect to contracts of Capital Works Reserve Fund projects, the new airport at Chek Lap Kok and the Airport Railway; and (b) the reasons for the abundance of such claims at present, given that when funding was sought, the Finance Committee had been advised that few claims would arise from the "Build-Operate-Transfer" contract approach? Reply: Madam President, (a) Contractual claims are a normal and natural part of construction contracting. Like other construction contracts, the main reasons for claims submission by Airport Core Programme (ACP) contractors under the terms of contracts may include: (i) disturbance to works progress caused by unforeseen circumstances (e.g. difficult ground conditions); (ii) delay in possession of works site; (iii) limitations on methods of construction certified as necessary by the Project Engineer; (iv) meeting requirements arising from the interface with other contracts and parties (e.g. site access by others); (v) design changes, and (vi) variations instructed by the Project Engineer in the course of construction. (b) As is usual in construction contracting, ACP construction contracts apportion risks involved in the construction process between the Employer and the Contractor. In other words, the contracts contain means by which the Contractor may submit claims for additional money or time, or both, associated with the risks where the Employer has liability. From the inception of ACP, the Government has aimed to set in place systems which will enable the early identification of contractual claims. Equally, we have put in place mechanisms which would allow claims to be dealt with early and to avoid, as far as possible, contractual claims turning into formal contractual disputes. As set out in the Quarterly Report, as at end December 1997, the Government, the Airport Authority and the MTR Corporation have received a total of 20,923 claims against 152 major ACP construction contracts. Of these, we have resolved 6,047 claims at a cost of $2,865 million against an original claim amount of $10,800 million. Given the scale, complexity, multiple contractual interfaces and tight programme of ACP, the number and amount of claims submitted are not unusual. It should be noted that the claims situation referred to in the Quarterly Report does not include the Western Harbour Crossing project, which is the only project in ACP whereby "Build, Operate and Transfer" (BOT) form of contract is adopted. Under the BOT arrangement, the project is implemented by a franchisee who finances, designs, constructs, operates and eventually transfers the facility to the Government. The franchisee is therefore responsible for the all project costs including all claims on the works contracts. Our current assessment indicates that sufficient contingency remains within the ACP budget for settlement of unresolved claims, while leaving a reasonable balance to meet extra costs that may arise due to possible changes and variation orders for the remaining contract period. We will continue to closely monitor the claims situation to ensure that all claims will be settled properly and fairly, and consideration will be given only to those which are fully substantiated. The fact that the ACP budget has been reduced in stages from $163,730 million to the present estimate of $155,322 million is a good indication of the effectiveness of the ACP cost control system. End 8. Living arrangement of elderly CSSA recipients ********************************************* Following is a question by the Hon Fung Kin-kee and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: According to the findings in a study, of all elderly recipients aged 60 or above of Comprehensive Social Security Assistance (CSSA), 42.6% were living alone. In this connection, will the Government inform this Council: (a) of the numbers of CSSA applications received in each of the past five years from elderly persons living alone; the percentages of these applicants against the total numbers of elderly CSSA applicants in each of the years; whether the number of cases involving elderly CSSA applicants living alone is on the upward trend; and (b) of the numbers of CSSA applications received in each of the past five years from elderly persons not living alone; and, out of these elderly persons, of the respective numbers of those who live in residential homes; with other family members all aged over 60; and in households with family members aged below 60? Reply: President, We presume the study referred to in the question relates to that commissioned by the Director of Social Welfare last year, the objective of which was to find out the financial resources and needs of elderly CSSA recipients living in the community. There are, in addition, elderly CSSA recipients living in residential care homes who are not covered by the survey study. Records of the Social Welfare Department indicate that as at end 1997 about 130 900 elderly received CSSA. Taking into account the findings of the survey study, the living arrangement for all elderly CSSA recipients was estimated as follows - (i) 25% lived in residential care institutions; (ii) 43% lived with their families, about half of whom were in households with members aged below 60; and (iii) 32% lived alone. With regard to the questions raised, the answers are as follows - (a) The survey study was a special exercise. We do not normally maintain separate statistics on CSSA recipients by their living arrangement. We do not therefore have information on the situation in the last five years. (b) Records of the Social Welfare Department indicate the number of elderly CSSA recipients living in residential homes and in the community during the past five years is as follows - Year Estimated no. of Estimated no. of (as at Dec.) CSSA elderly CSSA elderly living in institutions living in the community 1993 19 700 50 800 1994 18 000 53 900 1995 25 500 66 600 1996 27 300 81 700 1997 32 700 98 200 We do not maintain statistics on the living arrangement of elderly people in the community. End 9. Regulation of health food or slimming food ****************************************** Following is a question by the Hon Eric Li Ka-cheung and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: In view of a large variety of food products being promoted as health food or slimming food, will the Government inform this Council: (a) of the measures in place to regulate the advertisements of such food products, so as to prevent any misleading or false contents; and (b) whether it will consider enacting laws to the effect that such food products must be registered before they can be sold, so as to protect the health of the public; if not, why not? Reply: Madam President, (a) There are appropriate provisions under the Public Health and Municipal Services Ordinance for regulating the sale of food. Its subsidiary regulations stipulate specific requirements relating to the composition of certain food and the labelling of food. A purchaser may make his choice with reference to the information provided on the food labels. In addition, there are provisions in the Undesirable Medical Advertisements Ordinance which prohibit the advertising of any substance for the purpose of treatment or prevention of the diseases specified in the Ordinance, for example, cancer and heart diseases, etc. (b) At present, there is no internationally recognized categorization of "health food" or "slimming food". The legal provisions described above have provided sufficient grounds for regulating the sale of these foods in Hong Kong. The Government will keep abreast of developments and consider, when necessary, whether there is a need to strengthen the current control measures. End 10. Exchange Fund Advisory Committee ******************************** Following is a question by Dr the Hon Law Cheung-kwok and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the total number of meetings held by the Exchange Fund Advisory Committee in 1997, together with the attendance rate of each member; (b) of the number of incumbent Committee members who possess foreign nationality, and the number of those who are not permanent residents of Hong Kong; and (c) whether the agenda and minutes of the Committee's meetings are open documents; if not, why not? Reply: (a) The Exchange Fund Advisory Committee held a total of 12 meetings in 1997. For the eight non-official appointed members of the Exchange Fund Advisory Committee, their attendance rates in 1997 range from 67 per cent to 100 per cent and the average attendance rate is 80 per cent. (b) Members of the Exchange Fund Advisory Committee are appointed on the basis of their professional knowledge as well as their ability to offer advice to the Financial Secretary on the use of the Exchange Fund. The Financial Secretary has not asked members of the Committee to declare their nationality and residence status which are not part of the criteria for their appointment. (c) The issues discussed by the Exchange Fund Advisory Committee are mostly market-sensitive in nature and it would not be appropriate for the agenda and minutes to be made available to the public. End 11. Handling of persons receiving after-care services ************************************************* Following is a question by the Hon Hui Yin-fat and a written reply by the Secretary for Security, Mr Peter Lai, in the Provisional Legislative Council today (Wednesday): Question: It is reported that a 17-year-old youth receiving the after-care services of the Correctional Services Department (CSD) hanged himself in a police station during his detention for suspected robbery. In this connection, will the Government inform this Council: (a) whether the police will immediately notify the CSD after-care officers in charge when young suspects receiving their services are detained; if not, why not; (b) whether after-care officers have to know the whereabouts and activities of their supervisees at all times; (c) whether a communication mechanism is in place between the police and the CSD in respect of persons suspected of committing offences during after-care periods; if so, what the details are; if not, why not; (d) of the training currently provided for police and CSD officers to ensure that they have skills in handling the mental and psychological conditions of young persons suspected of committing offences during after-care periods; and (e) whether it will consider reviewing the police's procedures for detaining for investigation young suspects receiving after-care services; if not, why not? Reply: Madam President, (a) & (c) The Correctional Services Department (CSD) liaise closely with the Police Force in handling the arrest and detention of a person under CSD's after-care supervision ("supervisee"). At present, when a supervisee is released, CSD will provide the Police Force with the name and the Hong Kong identity card number of the supervisee as well as the contact telephone number of the after-care section of the relevant CSD's institution. The Police Force will store the information in the Enhanced Police Operational Nominal Index Computer System (EPONICS). After a person is arrested, the name and the Hong Kong identity card number of that person will be checked against the EPONICS. If it is found that the person is a supervisee, the Police Force will inform the relevant after-care section of CSD as soon as possible for appropriate follow up action. As regards the case mentioned by the Honourable Member, there appears to be a communication breakdown between the Police Force and CSD. The Police Force are now investigating into the case with a view to making improvements to the existing communication mechanism between the two departments. (b) The CSD's after-care officer is responsible for maintaining close contacts with his supervisees. Visits to supervisees' homes or work places will be conducted by the officer at least once a month. Besides, the contact telephone number of the after-care officer is given to the supervisee so that the officer could be contacted round- the-clock. (d) Adequate training has been provided by both the Police Force and the CSD to their staff so that they are well equipped to handle young persons committing offences. The Police Force offer training courses on youth counselling, communications skills with juveniles and seminars on problems faced by school children to their front-line officers. Likewise, the CSD provide in their basic training courses for their staff the skills to handle persons in custody. In addition, CSD's clinical psychologists conduct regular sessions to keep the staff abreast of ways to detect and prevent suicidal behaviour. Should a supervisee display any behaviour requiring psychological intervention, the after-care officer will make referral to the Clinical Psychologist for follow up action. (e) In the light of the case, the Police Force are conducting a review on the procedures for detaining young suspects for investigation with a view to identifying areas of improvement. In addition, there will be a death inquiry to be conducted by a Coroner which might also throw light on improvements to be made on the existing procedures. End 12. Measures to help the elderly **************************** Following is a question by the Hon Fung Kin-kee and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: According to the findings of some studies, the poor elderly (i.e. persons aged 60 or above) who are not receiving Comprehensive Social Security Assistance (CSSA) are living a more difficult life than those who are receiving CSSA, and among the poor non-CSSA elderly recipients, the lives of those living alone are even worse. In this connection, will the Government inform this Council: (a) whether it has formulated any policy to improve the lives of poor non-CSSA elderly recipients living alone; if so, what the details are; if not, whether it will formulate such a policy; and (b) whether it has planned to allocate additional resources to strengthen the publicity of the CSSA Scheme among the elderly, particularly those living alone? Reply: President, (a) The Government is committed to helping vulnerable members of our community, including low income single elderly. Whether they are on Comprehensive Social Security Assistance (CSSA), our social service policies are specially designed to address their needs. In the case of housing, the Housing Authority has various priority schemes to facilitate the elderly, as well as their families who are willing to live and take care of them, in gaining access to public rental housing. Under the "Single Elderly Persons Priority Scheme", elderly people are allocated units in Housing for Senior Citizen and the waiting time normally is two years. Elderly people with immediate housing problem would be assisted by the Social Welfare Department (SWD) under the compassionate rehousing arrangement. Elderly pubic housing tenants who have difficulties in paying even such heavily subsidized rent may apply for rent assistance from the Housing Department. To promote healthy living, we have set up seven Elderly Health Centres. We will expand their scope of service to include preventive, promotional and curative aspects and increase the number to 18 in the coming two years. To reduce their waiting time, general out-patient clinics offer 20% to 30% of their daily quota as priority discs to elderly persons aged 65 or above, and elderly with chronic diseases can make advanced appointments. Elderly who cannot afford may apply for the requisite fee to be waived. In terms of social welfare services, elderly people with low incomes are accorded priority access to home help and residential care services. Similarly, fees charged for a service would be waived or reduced for elderly persons who cannot afford to pay. We are keenly aware that support in the form of formal and professional services, and more importantly, care from family, friends and neighbours are of particular importance to elderly living alone. The Social Networking for the Elderly Project was launched in October 1996 with the specific objective of strengthening the social network of the single elderly, preventing social isolation and making social services, including CSSA, more accessible to them through referrals to appropriate service units/organisations. This and other out-reaching projects together with the multi-services centres and the social centres for the elderly all help to improve the quality of life of our elderly population. (b) Over the past few years, we have stepped up efforts to publicize the CSSA Scheme with a view to facilitating a better understanding of the Scheme and a wider dissemination of its existence. Additional efforts to reach out to the elderly are being made under a three-pronged approach - (i) we have arranged for Announcements of Public Interest on the radio. Staff of SWD also appear on radio programmes to publicize the Scheme and answer questions and enquiries on the spot. The most recent occasion was the Radio Hong Kong phone-in programme on 19 and 20 February 1998 when questions, mostly on CSSA, from some 20 callers were dealt with; (ii) SWD's departmental hotline handles enquiries about the CSSA Scheme and other social security services. Taped messages in Cantonese and Putonghua on the application procedures and eligible criteria are available on this hotline round the clock; and (iii) we have solicited the help of social workers of NGOs to disseminate information about CSSA in their day- to-day contact with their elderly clients, encourage and help those in need to apply for it. End 13. Fundings by Finance Committee ***************************** Following is a question by the Hon Henry Wu and a written reply by the Secretary for the Treasury, Mr K C Kwong, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council, among the items submitted to the Finance Committee of this Council in each of the past five years; of: (a) the number of those seeking funding for consultancy studies and the total amount of funds involved; and (b) the number of those seeking funding for public works projects and the total amount of funds involved and, among them, the number of those which included consultancy fees and the total amount of funds involved? Reply: Madam President, As we do not keep the requested data to hand, we have had to extract and compile the relevant figures from original Finance Committee and Public Works Subcommittee papers. Due to time constraints, we have only been able to provide the requested information for the past three financial years. The information is set out below - (a) The number of Finance Committee Agenda Items seeking funding for consultancy studies for the financial years 1995-96, 1996-97 and 1997-98 (as at February 27, 1998) and the total amount of funds involved is summarised in the following table - 1995-96 1996-97 1997-98 Total (as at Feb 27, 1998) No. of Finance 9 3 4 16 Committee Agenda Items seeking funds for consultancy studies Amount of funds $362.2 $144.6 $120.5 $627.3 ($million) (b) For the same period as in (a) above, the number of public works programme projects seeking funding via the Public Works Subcommittee approved by the Finance Committee, their total approved project estimates, the number of these projects which included funds for consultancy fees and the total amount of consultancy fees sought is summarised in the table below - 1995-96 1996-97 1997-98 Total (as at Feb 27, 1998) No. of public 99 111 168 378 works programme projects approved by Finance Committee via the Public Works Subcommittee (including increase in APEs) Total $18,295.02 $25,241.74 $32,675.57 $76,212.33 amount of approved project estimates in MOD prices ($million) No. of 51 61 81 193 above projects which included consultancy fees Total $1,104.6 $1,270.67 $2,400.63 $4,775.90 amount of consultancy fees contained in the approved projects estimates (including resident site staff costs) in MOD prices ($million) The above dollar figures are only the estimated project cost and consultancy fees sought and approved by the Public Works Subcommittee and the Finance Committee. They do not represent the actual expenditure on the projects. End 14. Officers undertake comprehensive medical screening ************************************************** Following is a question by Dr the Hon David Li and a written reply by the Secretary for Security, Mr Peter Lai, in the Provisional Legislative Council today (Wednesday): Question: On February 21 this year, a Police Superintendent collapsed and died of a suspected heart attack shortly after a physical exercise at the police training centre in Fanling. In this connection, will the Government inform this Council: (a) of the number of Police officers who died during or immediately after training in the past three years and the causes of their deaths; and (b) whether it will review the existing physical and medical tests held before allowing Police officers to take part in training to see if they can effectively prevent the occurrence of similar incidents; if so, what the details are? Reply: Madam President, (a) In the past three years, there were three Police officers who died during or immediately after training. Two died of heart attack while one died of suspected heart attack. (b) At present, Police officers attending strenuous training are required to go through a comprehensive medical screening including eye and hearing tests, chest X-ray, lung function test, blood test and electro cardiogram test to check the heart function. Depending on the medical history of each officer, supplementary tests may also be carried out. The Police Force Management, in consultation with medical professionals, are conducting a review of the existing medical screening for officers required to undergo strenuous training with a view to identifying areas of improvement. End 15. Statistics on elderly waiting for residential care homes ****************************************************** ** Following is a question by the Hon Henry Wu and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: Will the Government: (a) inform this Council of the respective numbers of elderly people waiting for institutional care places, those allocated such places and the increase of such on the waiting list in each of the past three calendar years; and (b) provide a breakdown of the number of elderly people in the above three categories by the following age groups: (i) 60-69; (ii) 70-79; (iii) 80-89; and (iv) 90 and above? Reply: Madam President, (a) The information requested is summarised as below: Number of elderly people waiting for Government-funded residential care places- (as at end December of each year) Total 1995 24 360 1996 29 866 1997 33 140* * It is estimated that about 44% of these elderly people are living in private residential care homes. Number of places allocated Total 1995 2 829 1996 3 722 1997 2 838 Number of new applications registered on the waiting list Total 1995 14 204 1996 18 332 1997 17 527 (b) The age breakdown for the above statistics is not readily available. End 16. Measures to prevent influenza ***************************** Following is a question by Dr the Hon Tang Siu-tong and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform the Council whether there are indications that the Sydney Influenza type A variant is spreading in Hong Kong; if so, whether it has allocated additional resources for carrying out preventive work? Reply: Madam President, Influenza is a common disease in Hong Kong. It has higher prevalence around March and July every year. This year's situation is the same as before, with the number of influenza cases starting to increase since late February. The predominant strain in previous years was the Wuhan strain, but it has been replaced by the Sydney strain this year. Both strains are subtypes of influenza A H3N2 viruses. Previous infection with the Wuhan strain or immunization with influenza vaccine containing the Wuhan strain helps prevent individuals against the infection by the Sydney strain. To avoid infection of influenza among the elderly in residential care homes, resources have been allocated to immunize these elderly people by vaccination. The mainstay in the prevention of influenza is to strengthen body resistance through proper diet, adequate rest and exercise, and maintaining good ventilation. The Department of Health will enhance its publicity efforts to promote these preventive measures to the general public through the mass media, its clinics and health centres. It will also continue to monitor the situation closely through its disease surveillance network which consists of public and private clinics, and hospitals. End
