Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Tuesday, September 2, 1997 CONTENTS ======== 1. Transcript of media session by the Chief Executive 2. Chief Executive's visit to US 3. Manila Bay accident 4. Education Department's response on textbooks supply 5. Bus services for Tung Chung strengthened 6. Rules to raise fees and charges of SFC endorsed 7. Prospect for external investment in Hong Kong optimistic 8. Public reminded on profits tax consultation deadline 9. SPC Credit Limited granted restricted banking licence 10. PLC members visit Stanley Prison 11. Hongkong Post wins bronze medal in PRIX OLYMPIA '96 12. Keen response for Annual Stamp Pack and Album 13. Hong Kong Monetary Authority tender results 1. Transcript of media session by the Chief Executive ************************************************** Following is the transcript of a media session given by the Chief Executive, Mr Tung Chee Hwa, after attending the ExCo meeting this (Tuesday) morning: Question: (on stock market) Mr Tung: I said earlier on that the financial market in Southeast Asia had gone through a rather difficult period. But as far as Hong Kong is concerned, the fundamentals are very sound. Recently, many of the companies here reported good results, good financial results. We have very good regulation, very transparent regulation. Many of the international investors when they want to create liquidity for themselves, they know they can rely on Hong Kong as a market. Perhaps as a result of that our shares also fell but I think the fact that we have performed very well in terms of liquidity, in terms of what investors can see, in terms of regulation and transparency would put us in good stead with the investors. Market will not fall forever. I think when we bounce up we are the first to benefit. End 2. Chief Executive's visit to US ***************************** The Chief Executive, Mr Tung Chee Hwa, will commence his visit to the United States next Monday (September 8), departing for Washington on UA 896 at 8.50 am. He will be accompanied by the Secretary for Trade and Industry, Miss Denise Yue, his Private Secretary, Mr Joshua Law, and Press Secretary, Miss Au King-chi. The party will return to Hong Kong during weekend. End 3. Manila Bay accident ******************* The Chief Executive, Mr Tung Chee Hwa, has assured the Action Group on the Manila Bay Tragedy that the Government would do its best to facilitate the families of the victims in seeking a full and fair account of the cause and circumstances leading to the tragedy that took place on August 15. Responding to an appeal for assistance from the Action Group, Mr Tung said today (Tuesday) that he had written to President Ramos personally to reflect to him the recent concerns of the Group. Also, Mr Tung's Office has passed a copy of the Action Group's appeal letter to the Consul- General of the Philippines for follow-up action. President Ramos has assured the Chief Executive that the appropriate Philippine authorities would continue their investigation of the said event in order to pinpoint responsibility and to render justice. End 4. Education Department's response on textbooks supply *************************************************** In response to media enquiries on a delay in the production of some textbooks for the new school year, a spokesman for the Education Department said today (Tuesday): "It has been a normal practice for publishers to submit textbooks for review quarterly, i.e. in February, May, August and November every year, except for the category of 'reprint with minor amendments'. "In view of the change of sovereignty in 1997, the Education Department anticipated in 1995 that factual contents of certain textbooks would have to be amended to accord with the Sino-British Joint Declaration and the Basic Law. "As textbook is one of the resources to support teaching, its content should be impartial and factually correct to facilitate training of independent thinking and analytical skills amongst students. "Thus, in December 1995, basic principles and examples from a number of subjects were given to textbook publishers associations on textbook revision. Those basic principles included 'revision should be kept to the minimum and complete revision of textbooks should be avoided'. "To ensure that pupils could obtain revised textbooks at the beginning of the new school year, the Education Department met with the publishers associations in March 1997 and agreed that publishers wishing to amend their textbooks to accord with the 'one country, two systems' principle in the category of 'reprint with minor amendments' for the coming school year could submit their books on or before May 15, 1997. "The Education Department would deploy staff to speed up book review work and to inform publishers of the results of the review on or before June 27, 1997. Publishers were given the flexibility to provide such amendments to teachers and students in the form of pamphlets or supplementary sheets. "All the above measures were introduced to cope with the changes taking place in society and to deal with the issue of textbook revision flexibly, so that amended versions of textbooks could be ready for use before the school term begins. "Until May 15, 1997, the Education Department had received from publishers over 300 volumes of textbooks for review under the above category and the results of the review were given to publishers as scheduled. "All these were done to facilitate publishers to arrange the printing of their books in time. "Delay in publication of individual textbooks in certain subjects by some publishers as reported may be due to factors such as reprinting strategies of individual publishers." End 5. Bus services for Tung Chung strengthened **************************************** In response to press enquiries on public transportation for school children to Tung Chung, a spokesman for the Transport Department said today (Tuesday) that all bus services have been strengthened from yesterday to cater for anticipated increases in demand for the new school term. "There are at present three external bus routes running between Tung Chung New Town and the urban areas in Kowloon and the New Territories. "Route no. E21, operating between Tai Kok Tsui Ferry Pier and Tung Chung, serves mainly passengers from Kowloon South, Kowloon West and the Hong Kong Island. "Route no. E22, departing from Kowloon City Ferry Pier, are for passengers heading from Kowloon East to Tung Chung. "Passengers from Tsuen Wan, Kwai Chung, New Territories West as well as the New Territories East via Shing Mun Tunnels may take route no. E31 which departs from Tsuen Wan Ferry Pier and operates via the Tsuen Wan MTR Station. "In view of anticipated increases in traffic demand in the new school term starting September 1, services of the three bus routes have been strengthened with more frequent and additional departures during the morning peak hours between 6.30 am and 9 am. "The peak hour frequency of routes no. E21 and E31 will be further enhanced from 12 and 15-minute interval to 10 and 7/8-minute respectively. "Services of route no. E22 will be strengthened when necessary. "Special departures of route no. E31 from Tsing Yi rather than from Tsuen Wan Ferry Pier have been arranged and will be further enhanced subject to demand. "Additional buses will be deployed to Tung Chung New Town to cater for the demand of school children returning home after school," the spokesman said. The Transport Department and the bus companies concerned will closely monitor the situation and make special arrangements if necessary. Moreover, regarding the ferry service between Tuen Mun and Tung Chung as mentioned in a newspaper today, members of the public are advised that these ferries are contracted for carrying workers to Chek Lap Kok only, the spokesman said. "It will be illegal for these ferries to carry passengers other than workers of the new airport because it is a breach of their operation conditions. "Parents of school children should advise their children not to take these ferries to Tung Chung as any personal injuries and damages to property will be at their own risk," the spokesman added. End 6. Rules to raise fees and charges of SFC endorsed *********************************************** The Chief Executive-in-Council endorsed, at its meeting last Tuesday, the making of the Securities and Futures Commission (Fees)(Amendment) Rules 1997 to revise the fees and charges of the Commission. Announcing this today (Tuesday), a Government spokesman said: "The Rules aim to bring up the levels of fees and charges in relation to the three major functional areas, namely Intermediaries, Investment Products and Corporate Finance of the Securities and Futures Commission (SFC) so as to compensate for the increases in costs in accordance with the full cost recovery policy. "The Rules also introduce two new fees following a recent fee review which has identified certain services currently being provided free of charge." It is the Government's objective that the SFC should be funded by the market and that it should recover as far as possible its expenses on specific services provided through fees and charges set out in the Securities and Futures Commission (Fees) Rules. Section 54 of the SFC Ordinance and Section 11 of Schedule 8 of the Interpretation and General Clauses Ordinance (Cap. 1) provide that the Chief Executive-in- Council may, after consultation with the SFC, make rules providing for the payment to the SFC of fees or other charges in relation to services provided by the SFC. "The fees and charges of SFC have not been revised since 1994. The current exercise increases the fees and charges of the majority items of services provided by the SFC by no more than 11 per cent which is relatively moderate as compared to the cumulative inflation during the period. Such lower than inflation adjustments are a result of the success of the SFC in improving their efficiency", the spokesman added. The Rules are scheduled to be gazetted this Friday (September 5) before coming into effect on September 16. End 7. Prospect for external investment in Hong Kong optimistic ******************************************************** The smooth handover of Hong Kong has proven to be a major disappointment to those who are pessimistic about the future of Hong Kong, the Director-General of Industry, Mr Francis Ho, said today (Tuesday) when addressing a group of Japanese businessmen at an investment seminar held in Yokohama, Japan. He said that it was no surprise that Hong Kong remained a robust, dynamic and vibrant economy after China's resumption of the exercise of sovereignty, given the guarantees in the Basic Law, the commitment of the Chinese leadership to the "one country - two systems" arrangement and the very sound economic fundamentals of Hong Kong. "If there is going to be any changes in Hong Kong's economy after it becomes a Special Administrative Region of China, it will be the further development of economic interdependence between Hong Kong and Mainland China," he said. "Because of Hong Kong's excellent infrastructure, robust financial market and its role as an international business hub," said Mr Ho, "many overseas investors who wish to enter the Chinese market often finds it desirable to have a Hong Kong partner or to set up a regional office in Hong Kong." Mr Ho also referred to a survey conducted by the Hong Kong Japanese Chamber of Commerce and Industry in which 90 per cent of the respondents considered Hong Kong's business environment after 1997 either favourable or very favourable. He said that the results of similar surveys conducted by other countries' chambers of commerce in Hong Kong were also favourable, which spoke volumes for the confidence of overseas investors in Hong Kong after 1997. The Director-General of Industry highlighted Hong Kong's intimate economic links with Japan, the country where the investment seminar was held. "Japan is the largest external investor in Hong Kong's manufacturing industries and the third largest external investor in overall terms after the UK and China. As at end of 1995, the total value of Japanese investment in Hong Kong amounted to US$11.2 billion, or 16 per cent of the total external investment in Hong Kong." Concluding his address, Mr Ho said that Hong Kong valued Japanese investment and would like to assure Japanese investors that the social, legal and economic system in Hong Kong has remained unchanged after China's resumption of the exercise of sovereignty. Mr Ho will attend another investment seminar in Tokyo tomorrow before returning to Hong Kong on September 4. End 8. Public reminded on profits tax consultation deadline **************************************************** The period for public consultation on the profits tax review will end on Saturday (September 6) and Government today (Tuesday) reminded interested parties to send in their views before the deadline. A Government spokesman said, "The consultative document on the profits tax review was issued on July 29 to invite public opinions on the issue. The aim is to improve and streamline our profits tax system in order to enhance the competitiveness of Hong Kong's business environment. Government will take into account the opinions so received in its review of profits tax. "The consultation period will end this Saturday. Interested parties should send their views to the Finance Bureau by post, by fax (fax number: 2530 5921) or through electronic mail (e-mail address: info@fb.gcn.gov.hk) before then." Copies of the consultative document are available from the Inland Revenue Department at Revenue Tower, Wan Chai or from the Internet website: http://www.info.gov.hk/fb. End 9. SPC Credit Limited granted restricted banking licence ***************************************************** A spokesman for the Hong Kong Monetary Authority today (Tuesday) announced that SPC Credit Limited (SPC) had been granted a restricted banking licence by the Monetary Authority under the Banking Ordinance on September 1, 1997. SPC is a wholly owned subsidiary of American International Group, Inc. (AIG), which is a US-based international insurance and financial services organisation. SPC has operated as a deposit-taking company since 1976. Its main business is the provision of residential mortgage loans, taxi/public light bus financing and consumer finance. With the granting of a restricted banking licence to SPC, the number of restricted licence banks in Hong Kong has increased to 65. End 10. PLC members visit Stanley Prison ******************************** A group of members of the Provisional Legislative Council (PLC) today (Tuesday) visited the Staff Training Institute of the Correctional Services Department to see the training of CSD recruits and also toured Stanley Prison to see the management and operation of Hong Kong's top maximum security penal institution. The nine members of the PLC were accompanied on the two visits by the Commissioner of Correctional Services, Mr Raymond Lai Ming-kee. They were briefed by the Staff Training Institute Principal, Senior Superintendent, Ms Doris Chow, on the facilities and various courses available to the recruits. At Stanley Prison, the Chief Superintendent, Mr Chan Kong-sang, briefed the PLC members of the operation and management of the maximum security institution which now holds more than 1,900 prisoners. End 11. Hongkong Post wins bronze medal in PRIX OLYMPIA '96 *************************************************** Hongkong Post was today (Tuesday) awarded a bronze medal in the PRIX OLYMPIA' 96 which honoured the three most beautiful stamps issued on the occasion of the Atlanta Olympic Games. The award, established since 1984, was presented by Mr Juan Antonio Samaranch, President, International Olympic Committee, to Mr Robert Footman, the Postmaster General, as part of the inauguration ceremony of the 106th International Olympic Committee Session. Receiving the award in Lausanne, Switzerland, Mr Footman said: "This award is a great honour for Hongkong Post. It reflects our commitment to the highest design standards for our commemorative stamps. "Happily the award coincides with the achievement of our athletes in the Olympic and Paralympic Games at Atlanta when Miss Lee Lai Shan won a gold medal for Windsurfing while Mr Ben Cheung and others won 15 gold, silver and bronze medals," he added. The award winning stamps, designed by Mr Bon Kwan, were among some 150 postal administrations issued stamps commemorating the Atlanta Olympic Games in 1996. The gold and silver medals have been won by the Colombian and Swiss postal administrations respectively. End 12. Keen response for Annual Stamp Pack and Album ********************************************* The Acting Postmaster General, Mr P C Luk, today (Tuesday) said that the application for ordering the 1996 Annual Stamp Pack and the 1996 Prestige Annual Stamp Album had received very good response from the public. "The application closed on August 25 and a total of some 196,000 and 216,000 applications for the Stamp Pack and Stamp Album have been received respectively. "Due to the overwhelming response, a computer balloting was held on August 29," Mr Luk said. The 35,000 and 9,000 successful applicants for the Stamp Pack and Stamp Album respectively will be notified by letter on or before next Monday (September 8). "Starting from next Monday to October 4, they can buy the products at the post office they selected," Mr Luk said, adding that unsuccessful applicants would not be informed individually. Applicants who wish to find out whether their applications are successful may dial the 24-hour enquiry hotline on 183 6756. End 13. Hong Kong Monetary Authority tender results ******************************************* Tender date : 2 September 1997 Paper on offer : EF Bills Issue number : Q091 Issue date : 3 September 1997 Maturity date : 3 October 1997 Amount applied : HK$16,960 MN Amount allotted : HK$5,000 MN Average yield accepted : 6.77 PCT Highest yield accepted : 6.80 PCT Pro rata ratio : About 86 PCT Average tender yield : 6.92 PCT - - - - - Tender date : 2 September 1997 Paper on offer : EF Bills Issue number : Q736 Issue date : 3 September 1997 Maturity date : 3 December 1997 Amount applied : HK$7,795 MN Amount allotted : HK$2,000 MN Average yield accepted : 6.71 PCT Highest yield accepted : 6.80 PCT Pro rata ratio : About 30 PCT Average tender yield : 6.87 PCT - - - - - Tender date : 2 September 1997 Paper on offer : EF Bills Issue number : Y793 Issue date : 3 September 1997 Maturity date : 2 September 1998 Amount applied : HK$7,160 MN Amount allotted : HK$500 MN Average yield accepted : 6.93 PCT Highest yield accepted : 6.93 PCT Pro rata ratio : About 10 PCT Average tender yield : 6.99 PCT - - - - - Hong Kong Monetary Authority **************************** Tender to be held in the week beginning - 8 Sept 97: Tender date : 9 September 1997 Paper on offer : EF Bills Issue number : Q092 Issue date : 10 September 1997 Maturity date : 8 October 1997 Tenor : 28 Days Amount on offer : HK$5,000 MN - - - - - Tender date : 9 September 1997 Paper on offer : EF Bills Issue number : Q737 Issue date : 10 September 1997 Maturity date : 10 December 1997 Tenor : 91 Days Amount on offer : HK$2,000 + 500 MN - - - - - Tender date : 9 September 1997 Paper on offer : EF Bills Issue number : H773 Issue date : 10 September 1997 Maturity date : 11 March 1998 Tenor : 182 Days Amount on offer : HK$1,000 + 300 MN End
