Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Thursday, March 19, 1998 CONTENTS ======== 1. Transcript of Chief Executive's media session 2. Statement by Department of Justice 3. 859 nominations received for subsector elections 4. Update on cholera 5. Manpower consultancy for travel and tourism industry 6. HK signs air services agreement with Israel 7. Partnership further strengthens postal services 8. Promoting HK's reinsurance & captive insurance business 9. Passengers reminded of new tram fares 10. Public understanding of control on optometrists enhanced 11. Value of manufacturers' orders-on-hand in January 1998 12. Three more slimming products found adulterated 13. Results of independent investigations on landslides announced 14. Trader fined for malpractice 1. Transcript of Chief Executive's media session ********************************************* Following is the transcript (English part) of the media session given by the Chief Executive, Mr Tung Chee Hwa, at the airport tonight (Thursday): Reporter: Zhu Rongji said that he saw no need to make reassessment to what had happened in Tiananmen. Do you think there is a need to reassess that? Mr Tung: Well, I think I have said this many times before that this is something that nobody wished that it had happened. But let us look at the fact that how much the country has progressed in the last few years in almost every aspect. So the important thing is to look forward as to how well we are doing as a country. And as a Chinese, I am certainly very proud of it and I know that all Chinese people share this pride. End 2. Statement by Department of Justice ********************************** A spokesman for the Secretary for Justice issued the following statement today (Thursday): "As we have stated since the prosecution of the three individuals in the Hong Kong Standard case was initiated, our decision in this case was taken entirely in accordance with our prosecution policy. We wish to re-state certain important points. Firstly, the Department of Justice follows well established principles in deciding whether to initiate a prosecution. Assuming that a prosecution is open in law, our guiding principles are whether the evidence is sufficient to justify a prosecution and, if it is, whether it is in the public interest to bring a prosecution. When deciding whether it is in the public interest to prosecute, this Department does not consider the personal connections or political status of any suspect. In this particular case, these principles have been scrupulously observed. "Secondly, we emphasize that no special treatment was given to any suspects. The status of any suspect or political factors did not feature in our decision. "Thirdly, under Article 63 of the Basic Law, the Department of Justice controls criminal prosecutions free from any interference. The decision in this case was taken independently by the Department according to the merits of the case and entirely in line with the spirit and the letter of the Basic Law. "Fourthly, questions have been raised by the media and in public as to why we have only charged three persons but not all alleged co-conspirators named in the case. It by no means follows that those identified in any alleged conspiracy offence are necessarily charged. This depends very much on the particular circumstances of the case. These can include such matters as the nature of the evidence against any named person, whether any person is to be a prosecution witness, whether a person is within the jurisdiction and whether charging a person would be in accordance with the prosecution policy as described. "Finally, as the matter is sub judice, the Department of Justice cannot comment on the details of the case. It would be contrary to an important legal principle for us to discuss the details of a case in public, when the case is due to be adjudicated in a court of law. However, in view of the interest which this case has aroused among the community, following the conclusion of the case and in the light of circumstances then pertaining, the Department of Justice hopes that it will be able to make a public statement on the case." End 3. 859 nominations received for subsector elections ************************************************ A total of 249 nominations for the Election Committee subsector elections have been received today (Monday). This brings to 859 the total number of nominations received since the eight-day nomination period started on Friday (March 13). The breakdown of nominations by subsector is: Subsector Number of nominations Cumulated total --------- received today --------------- --------------------- Catering 1 19 Commercial(first) 6 9 Commercial(second) 2 12 Employers' Federation 10 10 of Hong Kong Finance 6 9 Financial services 9 21 Hong Kong Chinese 1 11 Enterprises Association Hotel 3 4 Import and export 2 12 Industrial(first) 1 12 Industrial(second) 3 11 Insurance 6 15 Real estate and 5 9 construction Textiles and garment 12 Tourism 5 12 Transport 10 24 Wholesale and retail 14 19 Accountancy 4 30 Architectural, surveying 10 22 and planning Chinese medicine 13 30 Education 7 34 Engineering 6 45 Health Services 2 2 Higher education 6 24 Information technology 6 46 Legal 9 22 Medical 11 47 Agriculture and fisheries 8 65 Labour 4 45 Religious 20 40 Social welfare 20 37 Sports 10 Performing arts 8 8 Culture 1 12 Publication 11 Chinese People's Political 9 48 Consultative Conference Heung Yee Kuk 16 19 Provisional District 2 25 Boards for the Districts in the Urban Council Area ("Hong Kong and Kowloon Provisional District Boards") Provisional District 3 16 Boards for the Districts in the Regional Council Area ("New Territories Provisional District Boards") One candidate from the Accountancy Subsector and one from the Chinese People's Political Consultative Conference Subsector have withdrawn their nominations. End 4. Update on cholera ***************** The Department of Health announced today (Thursday) two new suspected cases - one imported and one local. The new suspected imported case involves a 27-year- old female living in Kowloon City, who developed symptoms of diarrhoea on March 17 after returning from Thailand. She did not take part in any tour group. The new suspected local case involves a 27-year-old female living in Yuen Long. The onset of her illness was on March 14. These two new suspected cases are being followed up. As of today, the total number of confirmed cholera cases so far this year remains at 45, including 30 imported cases and 15 local cases. There are three suspected cases, including two imported and one local cases. End 5. Manpower consultancy for travel and tourism industry **************************************************** The Government today (Thursday) announced the appointment of GML Consulting Limited and PKF Consulting Limited, in the form of a joint venture, to carry out a 20-week consultancy study on the manpower and training needs of the travel and tourism industry. "This will be the first of a series of studies to be undertaken by the Government to assess the manpower and training needs of key service industries in Hong Kong", the Acting Secretary for Education and Manpower, Mr Matthew Cheung Kin-chung, said at the contract signing ceremony for the study today. "Such studies are important if we are to preserve our competitiveness in the long term. The series of studies are one of the initiatives in the 1997/98 Action Agenda for Services Promotion endorsed by the Services Promotion Strategy Group chaired by the Financial Secretary. "If Hong Kong is to make the most of the benefits to be derived from the travel and tourism industry, and to maintain its present position as the most popular Asian destination, then we need to ensure that the industry has an adequate number of employees who are well equipped with the necessary, up-to-date skills for their jobs. "The overall objective of the consultancy study is to recommend a coordinated manpower and training strategy for the travel and tourism industry, which includes hotels, airlines and travel agents/tour coordinators, as well as related sectors such as restaurants and the tourist retail trade. "In addition, we shall take the opportunity to establish how Hong Kong compares with other economies in the region, and investigate the potential for developing Hong Kong as the travel and tourism training centre for the mainland, and possibly for the region", Mr Cheung said. End 6. HK signs air services agreement with Israel ******************************************* The Hong Kong Special Administrative Region signed an air services agreement with the State of Israel today (Thursday). The Secretary for Economic Services, Mr Stephen Ip, signed the agreement on behalf of the HKSAR Government while the Consul-General of Israel, Mr Zohar Raz, signed on behalf of the Government of the State of Israel. Mr Ip said,"The air services agreement signed today marks a new phase in the aviation relationship between Hong Kong and Israel. It provides a legal framework for the further expansion of our air links. "Acting under the authorisation of the Central People's Government, the HKSAR Government is going to negotiate and conclude air services agreements with more aviation partners." Mr Ip pointed out that the establishment of an extensive network of air services agreements would help strengthen Hong Kong's economic and trade ties with the rest of the world and to maintain Hong Kong's status as a centre of international and regional aviation. Since El Al Israel Airlines started services to Hong Kong in October 1994, passenger traffic on the Hong Kong- Israel route has increased by 50 per cent, and cargo traffic more than doubled. The HKSAR/Israel agreement is the twenty-fifth air services agreement signed by Hong Kong. Hong Kong has signed similar agreements with the Netherlands, Switzerland, Canada, Brunei, France, New Zealand, Malaysia, Brazil, Sri Lanka, Australia, Germany, Korea, Singapore, Italy, India, Japan, Myanmar, Thailand, USA, the Philippines, Indonesia, UK, Pakistan and Bahrain. End 7. Partnership further strengthens postal services *********************************************** Hongkong Post and Singapore Post today (Thursday) signed a Memorandum of Understanding (MOU) on the launch of reciprocal next morning 9 am Speedpost delivery service and on two day delivery standards for airmail services. Effective from April 1, 1998, Speedpost documents sent under the new 9 am Morning Delivery Service to and from Singapore and Hong Kong will be delivered on or before 9 am the next morning. Senders in Hong Kong will receive confirmation from Hongkong Post of receipt of their mail item in Singapore by phone or by fax by 10 am the same morning. The service, which costs only $298 extra per item, is the best value early delivery service in town. Commenting on the new services, Postmaster General, Mr Robert Footman, said: "Speedy and reliable delivery services are crucial for our customers. As the trade and business between Hong Kong and Singapore continue to strengthen, we foresee a tremendous growth potential for Speedpost services between the two places." Also with effect from April 1, the two Posts will implement a higher service standard for airmail services. Under the MOU, all airmail items between Hong Kong and Singapore will be delivered on the second working day after posting. "We will be closely monitoring the service performance against the new service standards and do all we can to continue improving postal services between Hong Kong and Singapore," Mr Footman said. End 8. Promoting HK's reinsurance & captive insurance business ******************************************************* The Commissioner of Insurance, Mr Alan Wong, welcomed the Financial Secretary's incentive in the 1998/99 Budget to promote Hong Kong's reinsurance business by offering a concessionary profits tax rate to professional reinsurers in respect of their offshore business. Speaking at a press conference releasing the 1997 Annual Report of the Office of the Commissioner of Insurance and the Office of the Registrar of Occupational Retirement Schemes today (Thursday), Mr Wong said that the proposal to offer a concessionary tax rate at 50 per cent of the normal profits tax rate was one of the major measures recommended in 1997 by the Working Group set up to promote Hong Kong as a centre for reinsurance and captive insurance. Another major measure implemented in 1997 by the Working Group was the introduction of regulatory concessions for captive insurers. "The Office of the Commissioner of Insurance also implemented a series of promotional measures to coincide with the government's initiative to encourage the development of reinsurance and captive insurance business in Hong Kong." Mr Wong said that his office had produced in 1997 a leaflet and a video promoting Hong Kong as an ideal location for captive insurance companies. Reporting on the performance of the insurance industry in 1996 as disclosed in the 1997 Annual Report, Mr Wong said that the Hong Kong insurance industry grew by six per cent in 1996 in terms of premium income, compared with 12 per cent in 1995. The total gross premiums of general business and long term business amounted to $46.4 billion in 1996, representing about 3.9 per cent of the Hong Kong Gross Domestic Product. Mr Wong pointed out that the growth in 1996 was contributed wholly by long term business which achieved a two-digit growth of 17 per cent. Gross premiums in respect of general business however declined by seven per cent to $18.7 billion, after enjoying growth for the past five consecutive years. Except accident and health business, gross premiums in respect of all other major classes of general business showed a decline. Particularly, gross premiums in respect of motor vehicle business and employees' compensation business dropped by 18.3 per cent and 24.6 per cent respectively. Mr Wong said: "The negative growth of the general business market could be the result of the slow-down of the economy in 1996 and keen market competition." In 1996, property damage business remained the largest class of general business which accounted for about 32 per cent of total gross premiums. This was followed by general liability (which includes employees' compensation business), motor vehicle, and accident and health business each accounted for about 16 per cent. Despite the decline in total gross premiums, general business remained profitable in 1996 with an underwriting profit of $0.6 billion. In view of its unique operational structure and different reporting system, statistics on the insurance business underwritten by Lloyd's in Hong Kong are separately shown in the Annual Report. Lloyd's carries on only general insurance business in Hong Kong. In 1996, Lloyd's gross premiums were $0.8 billion. Long term business continued its growth in 1996 with office premiums in force rising to $27.7 billion. Individual life business continued to be the dominant sector in terms of office premiums which increased by 18 per cent to $19.6 billion in 1996. Mr Wong said that the number of individual life policies in force exceeded 3.1 million at the end of 1996, representing a coverage of about 49 per cent of the population in Hong Kong (on the assumption that one person holds one policy), compared with 45 per cent at the end of 1995. Investment-linked business registered the strongest growth of 44 per cent with the result that its share in new individual life business increased from 24 per cent to 30 per cent. Retirement schemes business also recorded a strong growth rate. The number of policies rose by over 10 per cent to 13,549, while contributions increased by 14 per cent to $7.2 billion. Speaking on the growth of the insurance industry for 1997, Mr Wong said that according to provisional data, it was estimated that general business showed a marginal growth rate of two per cent in 1997 whereas long term business maintained its two-digit growth of 13 per cent. At the end of February 1998, there were 214 authorised insurers operating in Hong Kong, of which 151 were general insurers, 45 were long term insurers and 18 were composite insurers. Among these insurers, 101 were incorporated in Hong Kong and the rest in 27 different countries led by the United Kingdom and the United States. As regards the regulation of the retirement scheme industry, Mr Wong, in his capacity as the Registrar of Occupational Retirement Schemes, said that his office focused on the monitoring of registered schemes through examination of annual returns, audited financial statements and actuarial certificates submitted by the scheme administrators. According to the annual returns and audited accounts of registered schemes for 1996, the total asset value of these schemes amounted to $105.1 billion; while the total annual contributions made by employers and employees amounted to $12.5 billion and $4.0 billion respectively. At the end of 1997, there were 16,324 registered schemes in Hong Kong covering 861,576 employees or 29 per cent of the working population. The number of defined contribution schemes increased to 15,780, representing an increase of 10 per cent over the previous year, while defined benefit schemes dropped to 544, a decrease of three per cent. The Registrar's Office has continued to work closely with the Mandatory Provident Fund (MPF) Office on the interface arrangements for the existing occupational retirement schemes and the future MPF schemes. Mr Wong said that his office had alerted insurers and insurance brokers to the seriousness and implications of the "Year 2000" problem. All insurers were reminded to ensure that their computer systems would be Y2K compliant by the end of 1998. "We shall monitor the action taken by insurers and insurance brokers to render their computer systems Y2K compliant by various means including inspection visits," Mr Wong said. The Chinese and English versions of the Report are now on sale at the Government Publications Centre at Low Block, Ground Floor, Queensway Government Offices, 66 Queensway, Hong Kong. End 9. Passengers reminded of new tram fares ************************************* The Transport Department reminds tram passengers that a revised fare scale will be effective from this Saturday (March 21) onwards. The new adult fare for each single journey will be $2 while those for children will be revised to $1. The price for a monthly ticket will be adjusted from $135 to $170. The fare revision was approved by the Chief Executive in Council last month. End 10. Public understanding of control on optometrists enhanced ******************************************************** The Optometrists Board has stepped up its publicity efforts to help the public better understand the implementation of the Optometrists (Registration and Disciplinary Procedure) Regulation which provides for the registration of and the disciplinary proceedings for optometrists in Hong Kong. A leaflet and a poster has been printed by the board for wide distribution. Copies are now being distributed to hospitals, clinics, schools, voluntary agencies, district offices, the Hong Kong Optometric Association, the Hong Kong Society of Professional Optometrists and all registered optometrists. Announcing this today (Thursday), a spokesman for the Optometrists Board said these efforts aimed to arouse public awareness of the registration and control of the optometrist profession which had already been in force, and to remind members of the public to seek the service provided by registered optometrists for the protection of their health. "Registration of optometrists as stipulated in the Regulation commenced on December 1, 1994 and from April 1, 1996 onward, no person can practise as an optometrist without registration with the Optometrists Board," he said. As at March 1 this year, the number of registered optometrists in the four parts of the register are as follows:- Part No. of registrants ---- ------------------ I 293 II 331 III 105 IV 1,155 ----------------------------------------- Total 1,884 "Under the Supplementary Medical Professions Ordinance, a person who practises the optometrists' profession without being registered commits an offence," the spokesman said. "A person commits an offence if he employs another person to practise the optometrists' profession when the latter is not so registered. Any information on illegal practice of the optometrists' profession should be reported to the Police for investigation or the Optometrists Board for referral action." The spokesman said the Optometrists Board had prepared a Code of Practice prescribing the standards of conduct and practice and regulating the activities of optometrists. This Code of Practice has been issued to all registered optometrists for compliance. "Any registered optometrists contravening the Code of Practice may be subject to inquiries by the Optometrists Board. Such cases or any other cases of professional misconduct may be referred to the Optometrists Board for investigation and necessary inquiry," he added. Enquiries about the registration and control of optometrists in Hong Kong can be made to the secretariat of the Optometrists Board, second floor, Shun Feng International Centre, 182 Queen's Road East, Wan Chai. The telephone number is 2527 8363. End 11. Value of manufacturers' orders-on-hand in January 1998 ****************************************************** The value of manufacturers' orders-on-hand for local production in January 1998 decreased by 11% over a year earlier, according to the provisional results of a monthly survey released today (Thursday) by the Census and Statistics Department. Comparing January 1998 with January 1997, decreases in the value of orders were recorded in the plastic products industry (-25%), the electrical products industry (-19%), the fabricated metal products industry (-14%), the electronic products industry (-12%), the wearing apparel industry (-10%) and the textiles industry (-7%). However, increase in the value of orders was recorded in the printing & publishing industry (+2%). Compared with December 1997, and bearing in mind that this comparison may be affected by seasonal factors, the value of manufacturers' orders-on-hand in January 1998 increased by 2%. A Government Secretariat spokesman noted that, in face of the financial instability in the region and relatively modest performance in some of the overseas markets, importers had tended to place shorter and smaller orders in recent months. This could have affected the changes as depicted in the orders position. The Monthly Survey of Orders-on-hand covers a sample of some 300 manufacturing firms engaging 50 or more workers. Manufacturers' orders-on-hand refer to orders and parts of orders received earlier by manufacturers for local production which remain unfilled as at the end of the reference month. Orders received by traders not engaged in production are included if such orders are further placed to manufacturers for production locally. However, orders placed to manufacturing firms for production in the mainland of China and other places outside Hong Kong are not included in this series of orders-on-hand statistics. A spokesman of the Census and Statistics Department pointed out that caution should be exercised in interpreting the manufacturers' orders-on-hand figures in a single month. Instead, the trend movement of the series as displayed over a wider span of time points should be looked at. The survey report for January 1998, at $9 a copy, is now available for sale at the Government Publications Centre, Queensway Government Offices, Low Block, ground floor, Queensway, and at the Census and Statistics Department Publications Unit, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai. Enquiries about the survey results may be made to the Industrial Production Statistics Section of the Census and Statistics Department on 2805 6441. The following table shows the year-on-year percentage changes in the value of orders-on-hand in different manufacturing industries. Percentage changes in the value of orders-on-hand in December 1997 January 1998 over December 1996 over January 1997 ------------------ ----------------- (Revised) (Provisional) All industries covered -7 -11 in the survey - Wearing apparel -6 -10 - Textiles -4 -7 - Electronic products -8 -12 - Electrical products -15 -19 - Fabricated metal products -13 -14 - Plastic products -15 -25 - Printing and publishing +12 +2 End 12. Three more slimming products found adulterated ********************************************** The Department of Health has found three more slimming products, labelled as Chinese medicine, to contain a de-registered Western medicine, fenfluramine, it was announced today (Thursday). The three slimming products are Trim-Right Rapid Reduce Fat Pills, Youthening Slenderin Capsule and Su Xiao Fei Ying Yang Su. The first was also found to contain ephedrine while the second and third also contained amfepramone. Both ephedrine and amfepramone are western medicines. These have brought the total number of illegal slimming products containing fenfluramine to 12 since the first was discovered last December. Fenfluramine is reported to be associated with heart disease. The Pharmacy and Poisons Board has de-registered all products containing it with effect from January this year. The department's Assistant Director (Special Health Service), Dr W M Chan, advised the public not to buy and use these three slimming products and consult their doctors for advice. Dr Chan said: "Acting upon complaints, the department tested these three products and found that they contained fenfluramine. "Follow-up investigations revealed that the first product was manufactured locally, using illegally imported drug ingredients. About 200 tablets found in the manufacturer's premises have been seized with additional three boxes recalled by the wholesaler. "The second and third products were found to be illegally imported and marketed by direct sale. Investigation is continuing to trace the importer and the salesmen involved. "Department staff have been visiting beauty parlours. So far, no such slimming products have been found." Retailers who are in possession of the three slimming products are urged to refrain from selling them and surrender them to the Department's Pharmaceutical Services, 18th floor, Wu Chung House, 213, Queen's Road East, Wan Chai. Dr Chan appealed to the public and operators of beauty parlours to contact the Department's Pharmaceutical Services Complaint Hotline on 2572 2068 during office hours if they encounter slimming products of doubtful origin. She said as the first was found to be a locally manufactured product, the Department had issued letters to all registered drug manufacturers in Hong Kong to remind them to abide by the Pharmacy and Poisons Ordinance. Under the Pharmacy and Poisons Ordinance, the possession and sale of unregistered pharmaceutical products is an offence liable to a maximum penalty of $100,000 and two years' imprisonment. End 13. Results of independent investigations on landslides announced ************************************************************* Significant rise in ground water pressure following very heavy rainfall was blamed for the landslides at Kau Wah Keng and the Ten Thousand Buddhas' Monastery last year. Results of independent investigations into the two fatal incidents were announced by the Geotechnical Engineering Office (GEO) of the Civil Engineering Department today (Thursday). The incident at Kau Wah Keng Upper Village on June 4 last year caused damage to an isolated hillside hut, killing one person and injuring five others. "Following this, the GEO carried out an exercise to inspect other huts in isolated conditions. More than 600 similar huts in various parts of the territory have been inspected, of which 43 will be recommended for clearance," a GEO spokesman noted. "On the landslide at the Ten Thousand Buddhas' Monastery on July 2 last year, the consultants also found sub-standard design and the lack of maintenance of the cut slope had probably contributed to local progressive slope deterioration," the spokesman said. The Buildings Department (BD) has since issued two Dangerous Hillside Orders to the owner and the entire monastery is still closed under the Orders. "The Authorised Person employed by the owner has recently proposed some slope repair works to BD to facilitate the re-opening of part of the monastery adjacent to and including the Main Temple," the spokesman said. "The works have been approved and are expected to commence in April. The monastery is not suitable for use or occupation until such works are completed to the satisfaction of the BD," he noted. Both investigations were carried out by Halcrow Asia Partnership. Key tasks included the following: * review of all known relevant documents relating to the development; * analysis of rainfall records; * topographical surveys and detailed observations and measurements on site; * geological mapping; * ground investigations and laboratory testing; * theoretical analysis of the slopes; and * diagnosis of the probable causes of the failure. Copies of the investigation reports in Chinese and English are available free of charge at the Civil Engineering Library, Civil Engineering Building, 101 Princess Margaret Road, Ho Man Tin. End 14. Trader fined for malpractice **************************** A spokesman for the Customs and Excise Department said today (Thursday) that it is a serious offence to furnish false information for certificate of origin- processing application. The warning was given after a watch trader was fined $300,000 at Kwun Tong Magistracy today after pleading guilty to one count of making false inforamtion in an application for certificate of origin-processing regarding the place of assembly work of the goods. A watch processor was also fined $10,000 for furnishing to the trader a signed but blank certificate of origin-processing application. The goods involved were 57,275 quartz analogue watches valued more than $1.1 million for export to Argentina. The court heard that in October 1996,Herofame Industrial Limited submitted an application for certificate of origin-processing to the Hong Kong General Chamber of Commerce covering 57,275 quartz analogue watches for export to Argentina. In the application, it furnished the information that the assembly work of the component parts into completed watches was carried out at the registered factory premises of a Cotronic World Time Company in Hong Kong. However, investigations by officers of the Customs and Excise Department revealed that the assembly work of the goods in question was in fact done by a factory in China. Further investigations revealed that the proprietor of Cotronic World Time Company had furnished a signed but blank application form to Herofame in obtaining the certificate. The spokesman stressed that the department would step up enforcement actions to track down such malpractice to protect the commercial reputation of Hong Kong and to ensure that the confidence of its trading partners in Hong Kong's certification control system would not be undermined by some dishonest businessmen. The maximum penalty for furnishing false information in an application for certificate of origin-processing is a fine of $500,000 and two years' imprisonment. Members of the public having information on such malpractice could call the Customs hotline 2804 2388. End
