HONG KONG 1997
113°50'E
22°30ND
The Territory of HONG KONG
DEEP BAY
114°00'
SHENZHEN
22°20'
Peaked Hill
ARIAU
LANTAU CHANNEL
22°10'N
113°50'E
Lung Kwu Chau
SHEKOU
Sha Chau
Black
Nim War
Nai
Point
Tap Shek
URMSTON ROAD
CHEUN TAI HOM SHAME
TAI LONG WAN
Kok
LUNG KWU
CASTLE -PEAK 583
TAN-
Mong Tseng Wa
Tsm Bei
JAU FAU
SHAN
→TIN SHUI
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San Wai Tsuen
WANG CHAU
Wai
TSUEN
YUEN ONG
HEUNG
PILLAR POINT
CASTLE PEAK
BAY
Pearl Island
The Brothers
GO KWUNG
LÀM CHU
LUNG TAU
YAM O
TO WAN
Tsing Chau
Chek Lap Kok
New Airport under construction
SHA LO
WAN
TUNG CHUNG BAY
STUNG CHUNG
Airport Railway under construction
KANTAU ISLAND.
LANTAU PEAK
LO FU
TAU
SILVER MINE
BAY
DISCOVERY BAY
CHI MA WAN
PUI O
WAN
CHEUNG SHA
Rescapir
TONG FUK
MIU WAN
。 Cha Kwo
Chau
Siu A Chau
Series HM 200CL Edition 21 1997
Tai A
Chau
Soko Islands
ADAMASTA CHANNEL
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Peng Chau
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Siu Kau Yi Chau
Kau Yi
Green
Chau
Island
Sunshine Island
Hei Ling
CHANNEL
RAMBLER
TAIMO
SHANN
STONECUTTERS
ISLAND
KOWLOO
WEST LAMMA CHANNEL
SULPHUR CHANNEL
Chau
EAST LAMMA 'Œ
YUNG SHUE
WANA
LUK CHAU WAN
HONG
HA ME!
WAN
KONG
香港中央
圖書館
*
George
Island
PICNIC BAY
Zamma Island
TUNG I WAN
kri
AL LIBR
Scale
114°00'
4
6
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Che
Hang
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STARLING INLET
KWAI TAU
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VIOLET Rese
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THREE FATHOMS D COVE
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114°20'E
Crescent Island
DOUBLE HAVEN
WONG CHUK KOK HOI
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MONG
▾ Yim Tip
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Sharp Island
Kau Sai Chau
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BIG WAVE
BAY
NORTH CHANNEL
MIRS BAY
Port Island
MIDDLE CHANNEL
LONG HARBOUR
Grass
Island
468 SHARP
TAKLONG
High Island Reservoir
HIGH ISLAND
Ping Chau
LEGEND
Built-up Area
22°30'N
TAI LONG
Cultivation
Country Park / Reserve
Main Road Tunnel
Secondary Road
Railway Tunnel
Light Railway
Contour (vertical
interval 100 metres with supplementary contour at 50 metres)
PORT SHELTER
ROCKY HARBOUR
Jin Isaind
SILVERSTRAND
Shelter Island
Town Island
Hole Island
Bluff Island
PUBLIC
CLEA WATER BAY
10
Basalt Island
.20
Sea depth in metres
30
CHINA
JOSS HOUSE
BAY
FAT TONG MUN
Tung Lung
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Ninepin Group
LINDIA
TATHONG CHANNEL
Middle Island
REPULSE
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Round Isaind
STANLEY
200 000
8
114°10'
10
122
SHEUNG SZE MUN
Beaufort Island
14 km
Po Toi
Islands
Sung Kong
Waglan
Island
114°20'E
MONGOLIA
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SOU
KOREA
Nanjing.
Shanghai
RHNA
Chongqing
SEA
Fuzhou
Guangzhou.
\MACAU HONG
Taiwan
MYANMAR
LAOS
THAILAND
CAMBO
DIA/
Sumatra
FACIFIC OCENI
Guam
KONG
SOUTH CHINA
SEA PHILIPPINES
BAUNEI
MALAYSIA
SINGAPORE
ສສ
22°
20
Scale
km
0
1000
km 20001
Borneo
Sulawesi
Irian Jaya NEW
PAPUA
GUINEA
INDONESIA
Cartography by Survey and Mapping Office, Lands Department
(c) Copyright reserved
reproduction by permission only
22°10'N
香港公共圖書館
HONG
·KON
LIBRARIES
PUBLIC LIBRAR
Cover Illustration
The Tsing-Ma Bridge
gives off a diamond's sparkle
as workers press on into the evening to complete the major link between the territory and Hong Kong's new international airport at Chek Lap Kok.
End-paper Maps
Front
The Territory of Hong Kong Back
Hong Kong in its Regional Setting
Frontispiece
A dream becomes reality
as a major extension
to the Hong Kong Convention and
Exhibition Centre takes shape
on the Wan Chai waterfront.
市政局公共圖書館 UCPL
3 3288 03769524 6
HONG KONG 1997
A REVIEW OF 1996
Photo courtesy of the Hong Kong Trade Development Council
A
mi
פי
Hong Kong: The Facts
Population: 6.3 million
Hong Kong Island
1.34 million
21.4%
Age structure
Kowloon
2.02 million
32.2%
New Territories
2.90 million
46.1%
Outlying Islands
0.06 million
0.3%
Median age: 34 Under 15: 18.5% Over 64: 10.1%
Sex ratio
Overall: 1 000 males per 1 000 females
Under 15: 1 075
Over 64: 816
Overall density
Nationalities
Languages
5 780 people per square kilometre.
Kwun Tong District has 53 610 people
per square kilometre.
Housing
3.1 million people live in public housing, which includes 660 200 flats. In 1996,
Hong Kong had 1.85 million domestic households, 44.5% occupied by the owner, 50.8% by tenants, and 4.6% either rent-free or employer-provided.
Predominantly of
Percentage
Chinese descent
95%
who can speak:
Largest foreign
Cantonese
95.2
passport-holder groups
English
38.1
(mid-1996):
Putonghua
25.3
Philippines
128 300
Chiu Chow
5
USA
32 600
Hakka
4.9
Canada
28 200
Fukian
3.9
UK
26 700
Sze Yap
1.4
Indonesia
25 900
Shanghainese
1.6
Thailand
25 500
Filipino
1.8
Birth rate
Death rate
11.2 per 1 000 popn
5.1 per 1 000 popn
Japan
21 500
Japanese
1.2
India
20 900
Life expectancy
Australia
20 500
Male 76
Female 81.5
Malaysia
14 200
Religion and custom
Buddhists and Taoists make up the vast majority. Christians 497 400; Muslims 50 000; Hindus 12 000; Jews 1 000.
Area: 1 095 square km
Highest point
Hong Kong Island
80 square km
Tai Mo Shan 957 metres
Kowloon
47 square km
New Territories
794 square km
Outlying Islands
174 square km
Reclamation since 1851
60 square km
Country Parks
Hong Kong's 21 country parks and 14 designated special areas cover 41 351 ha-almost 40% of the land area. A further 58 sites of special scientific interest mark particular habitats. About 10.7 million visitors use the country parks each year. Three marine parks and one marine reserve are planned to cover about 2 160 ha of sea. Mai Po
Marshes Nature Reserve, a declared site under
the international Ramsar Convention for the
Conservation of Wetlands, covers 380 ha.
Deepest point
Lo Chau Mun (Beaufort Channel)
66 metres.
Tallest building
Central Plaza, Wan Chai, 374 metres
Weather
Average annual rainfall 2 124.3 mm
Wettest period Hourly daily
109.9 mm (May 8, 1992)
534.1 mm (July 19, 1926)
monthly
1 241.1 mm (May 1889)
Driest
10% humidity (January 16, 1959)
Highest temperature
36.1°C (August 18 and 19, 1900)
Lowest temperature
0.0°C (January 16, 1893)
Highest wind speed
230 km/h (September 5, 1964)
June/July norms
mean temperature
average total rainfall
Transport
27.8°C
28.8°C
376 mm-323.6 mm
397 metres above sea level, 11 000 passengers daily mostly tourists but four intermediate stops service
commuters.
Air movements
1996-158 797 flights; 23.4 million passengers; 1.56 million tonnes of freight
Shipping movements
1996-40 808 ocean vessel arrivals;
40 865 departures; total cargo 123.67 million tonnes
Container throughput
13.2 million TEUS.
Roads
The 1 717 km of roads carry 466 068 licensed vehicles, or about 270 vehicles per kilometre.
Bridges
Longest: Tsing Ma suspension bridge (main span 1 377 metres) and the 463-metre cable-stayed Kap Shui Mun bridge. A 280-metre viaduct links the
two.
Tunnels
Eight tunnels, 900 metres to 4 km long, carrying 573 000 vehicles a day, fares from $3 to $30. Third cross-harbour tunnel, 2 km, to open during 1997, 180 000 vehicle capacity.
Railways
Mass Transit Railway-First stage opened in 1979; 43 km of track; 38 stations. 2.5 million passenger journeys daily.
Lantau-Central (34 km)-Airport Expressway and North Lantau Line under construction. Kowloon-Canton Railway-Opened in 1910;
34 km of track between Hung Hom and the border; 13 stations; 632 700 passenger journeys daily. Light Rail Transit-Opened in 1988; 32 km Tuen Mun-Yuen Long-Tin Shui Wai;
57 stops, 379 000 passengers daily.
Hong Kong Tram-Opened in 1904, 13 km double track along Hong Kong Island's north shore, plus three km single track around Happy Valley. Peak Tram-Opened in 1888; Hong Kong's oldest public transport. Funicular railway rising 373 metres from Garden Road, Central, to Victoria Gap;
Employment
(Total workforce: 3.16 million at October 96)
Major sectors
Wholesale, retail and import/export, trades, restaurants and hotels
Finance, insurance, real
estate and business
services Community, social and personal services
Civil Service
Transport storage and communications
Unemployment rate
Average wages
(Selected industries)
1.03 million
28% of workforce
386 940
12% of workforce
310 099
10% of workforce
183 110
5.8% of workforce
176 319
5.5% of workforce
2.9%
$9.772 per month
GDP per capita (Expenditure based) $1.195 billion
Flying time to:
Bangkok 2 hrs 20 mins Beijing 2 hrs 30 mins Bombay 5 hrs 40 mins Guangzhou 20 mins
London 13 hrs
Manila 1 hr 30 mins
Moscow 9 hrs 30 mins
New Delhi 5 hrs
New York 17 hrs
Paris 12 hrs 45 mins
Rome 12 hrs 15 mins
San Francisco 14 hrs 30 mins Shanghai 1 hr 45 mins
Seoul 2 hrs 45 mins Singapore 3 hrs 20 mins Sydney 9 hrs 30 mins Taipei 1 hr
Tokyo 3 hrs 40 mins
Toronto 16 hrs 45 mins Washington 17 hrs 30 mins
HONG KONG 1997
Editor
Bob Howlett
Information Services Department
Photography
Daniel Wong, Tsui Chee-kwong, Jacob Ho, Anthony Chu, Au Yeung Yiu-man, Kris Chan, Rydstik Chu, Augustine Chu, David Ho, Andy Mou, Stanley Ng,
Albert Yu, John Choy, Information Services Department
Design
Denny Yu
Information Services Department
Special contributor The Governor, the Right Honourable Christopher Patten (Chapter 1)
Statistical sources
Census and Statistics Department
The editor acknowledges
and thanks all contributors and sources.
URBAN COUNCIL PUBLIC LIBRARIES
No.
1657328
Class
951.25
Author
HKCr
HON
Copyright reserved
Code No. F30019700EO |(ISBN 962-02-0233-3)
Price HK$88
http://www.info.gov.hk
Published by Information Services Department
Printed by Government Printer, Hong Kong
Printed on paper made from woodpulp derived from renewable forests
CONTENTS
Chapter
CALENDAR of Events IN 1996
HONG KONG HISTORY
Page
1
1-3
234
CONSTITUTION AND ADMINISTRATION
4-25
THE LEGAL System
26-35
4
ARRANGEMENTS FOR THE TRANSITION
36-45
5
THE ECONOMY
46-69
6
FINANCIAL And MonetaRY AFFAIRS
70-92
7
TRADE AND INDUSTRY
93-115
EMPLOYMENT
116-128
9
PRIMARY PRODUCTION
129-133
10
EDUCATION
134-160
11
HEALTH
161-176
12
SOCIAL WELFARE
177-187
13
HOUSING
188-200
14
LAND, PUBLIC WORKS AND UTILITIES
201-232
15
TRANSPORT
233-256
16
THE AIRPORt Core ProgRAMME
257-264
17
PORT DEVELOPMENT
265-268
18
PUBLIC ORDER
269-309
19
THE ARMED SERVICES
310-313
20
TRAVEL AND TOURISM
314-320
21
COMMUNICATIONS AND THe Media
321-338
22
RELIGION AND Custom
339-343
23
RECREATION, SPORTS AND THE ARTS
344-372
24
THE ENVIRONMENT
373-395
25
POPULATION AND IMMIGRATION
396-401
26
HISTORY
402-410
APPENDICES
411-490
INDEX
491-501
When dollars are quoted in this report,
they are, unless otherwise stated, Hong Kong dollars.
Since October 17, 1983, the Hong Kong dollar has been linked to the US dollar, through an arrangement in the note-issue mechanism,
at a fixed rate of HK$7.8=US$1.
Some figures in the text are estimated; actual figures appear in the appendices.
Hong Kong Government Publications
are obtainable from
The Government
Publications Centre
Queensway Government Offices, Low Block, Ground Floor, 66 Queensway, Hong Kong
Leading bookshops throughout Hong Kong
Government
Information Services Department Publishing Sub-division
(bulk sales and editorial enquiries)
28th Floor, Siu On Centre,
188 Lockhart Road, Wan Chai,
Hong Kong
CALENDAR OF EVENTS IN 1996
January
6
8
9
10
14
15
22
The British Foreign Secretary, Mr Malcolm Rifkind, arrives for his first official visit to the territory. He meets the Governor, the Right Honourable Christopher Patten, Executive and Legislative Councillors, visits the new airport site at Chek Lap Kok and tours Yiu Tung Estate in Shau Kei Wan.
The Secretary for Planning, Environment and Lands, Mr Bowen Leung, leads the Hong Kong team to Guangzhou for the sixth meeting of the Hong Kong-Guangdong Environmental Protection Liaison Group. The meeting is co-chaired by the Director of Guangdong Province's Environmental Protection Bureau, Mr Wang Yinkun. Both sides express concern over serious water pollution in Deep Bay.
Vitasoy International Holdings withdraws all Vitasoy and Vita products packed in paper cartons after complaints of sour taste. The Department of Health finds abnormal acidity in four samples out of 240 tests but says this is not health-threatening. About 8 200 tonnes of Vitasoy cartons and contents are incinerated, buried or passed through sewage treatment works.
British and Chinese members of the Joint Liaison Group initial agreed minutes on the issuing of passports by the Hong Kong Special Administrative Region.
The Secretary for Security, Mr Peter Lai, and the Refugee Co- ordinator, Mr Brian Bresnihan represent Hong Kong in Bangkok at a meeting of the Steering Committee of the International Conference on Indo-Chinese Refugees which considers the Comprehensive Plan of Action.
The Postmaster General, Mr Robert Footman, leads a Post Office delegation on a courtesy visit to the Ministry of Posts and Tele- communications in Beijing.
Hong Kong and Guangdong exchange information and review cross- border co-operation arrangements at the 16th Annual Border Liaison Review meeting.
CALENDAR OF EVENTS IN 1996
29
31
February
1
10
16
28
a
HO
The Secretary for Trade and Industry, Miss Denise Yue, meets senior officials of the European Union in Brussels, including vice-presidents Sir Leon Brittan and Mr Manual Marin. They discuss Hong Kong's relationship with the EU and the multilateral trading system.
Hong Kong and Germany sign an investment promotion and protection agreement in Bonn.
The Financial Secretary, Mr Donald Tsang, flies to Davos, Switzerland, to attend the annual summit of the World Economic Forum.
A new Supplementary Labour Scheme comes into in force under which employers are allowed to bring in workers if locals cannot be recruited. It will be reviewed when 2 000 visas are issued.
In the year's first flight under the Orderly Repatriation Programme, 109 Vietnamese fly back to Hanoi.
Two teachers and three children die in a scrub fire while on a school outing in the Pat Sin Leng hills north of Tai Po. Another 13 children are injured.
Law reforms come into effect giving greater protection for vulnerable witnesses giving evidence in criminal cases. These allow witnesses to give evidence by television from a room outside the court and recorded on video.
Chairmen of the 18 District Boards or their representatives pay the first formal visit by such a body to Macau. They meet their Macau counterparts and visit various municipal projects, including the new airport on Taipa. The trip is organised by Hong Kong's Home Affairs. Department.
March
2
3
4
The British Prime Minister, Mr John Major, arrives in Hong Kong for a two-day visit. He tours the sites of Tsing Ma Bridge and Chek Lap Kok airport. He meets the Governor, businessmen, members of the Executive and Legislative Councils and community leaders.
The Secretary for Works, Mr Kwong Hon-sang, accompanied by seven officials, visits Beijing and Dalian for general familiarisation. The visit ends on March 12.
Mr Major announces the granting of visa-free access to the UK for holders of Special Administrative Region passports and a special arrangement for war widows and Hong Kong ethnic minorities.
Principal Crown Counsel Stephen Wong leads a team to a UN hearing in Geneva to answer questions on the implementation of the Convention on the Elimination of All Forms of Racial Discrimination in the territory.
CALENDAR OF EVENTS IN 1996
6
8
10
14
15
29
31
April
1
2
8
10
The Financial Secretary, Mr Donald Tsang, presents his first Budget to the Legislative Council.
The Secretary for Health and Welfare, Mrs Katherine Fok, announced improvements in Comprehensive Social Security Assistance payments, to benefit single parents, family carers and adults in ill health.
The Director of the Chinese Foreign Ministry's Hong Kong and Macao Affairs Office, Mr Wang Guisheng, leads a Chinese delegation on a nine-day visit to the territory. This is one in a series of sponsored visits between China and Hong Kong.
A criminal case was conducted in Cantonese in the District Court for the first time. The High Court heard Hong Kong's first civil case in Cantonese in 1995.
The Marine Department announces that, for the fourth consecutive year, Hong Kong remains the busiest container port in the world with. an annual throughput of more than 12.5 million 20-foot equivalent units of containers in 1995.
The Secretary for Trade and Industry, Miss Denise Yue, attends the Hong Kong-US and US-Hong Kong Economic Co-operation Committee Plenary Session in Washington DC. During her week in the US capital, she meets the US Trade Representative, Ambassador Mickey Kantor, and the Assistant Secretary of State for East Asian and Pacific Affairs, Ambassador Winston Lord.
Hong Kong and the Republic of Korea sign an air services agreement, providing a firm legal and regulating framework for the continuation of bilateral air services links beyond 1997.
The Secretary for Trade and Industry, Miss Denise Yue, makes her first official visit to Beijing to exchange views with her Chinese counterparts on matters of mutual interest.
The Official Languages Agency is set up to promote the greater use of Chinese in the Civil Service.
The Executive Council grants a new franchise to Citybus Limited for 10 years from September 1, 1996.
It also approves an Education Department scheme that will make up to 90 per cent of all kindergartens eligible for subsidy.
The Refugee Co-ordinator, Mr Brian Bresnihan, accompanies the Minister of State for Foreign and Commonwealth Affairs, Mr Jeremy Hanley, on a visit to Vietnam. It is agreed that the orderly repatriation programme will be accelerated with extra flights in May.
The Governor pays a duty visit to London. He holds discussions with the Prime Minister and Foreign Office officials on developments in Hong Kong.
CALENDAR OF EVENTS IN 1996
11
12
15
18
19
25
29
30
May
1
The Deputy Director of the Chinese Ministry of Justice's Foreign Affairs Department, Mr Wu Minying, leads an eight-member delegation on a visit to the territory, part of a series of reciprocal legal study visits that began in 1988.
Shenzhen officials involved in intellectual property protection meet representatives of Hong Kong Customs and the Intellectual Property Department. Both sides affirm their high level of commitment to the protection of intellectual property in their respective jurisdictions.
The Housing Society, the Land Development Corporation, the Airport Authority and the Vocational Training Council are brought within the jurisdiction of the Commissioner for Administrative Complaints. They are the second batch of statutory bodies included under its jurisdiction since June 1994.
The Attorney General, Mr Jeremy Mathews, attends a Commonwealth Law Ministers' meeting in Kuala Lumpur.
Mainland and Hong Kong Customs officials meet in Shantou to plan further expansion of co-operation in anti-smuggling and intellectual property protection.
The Chief Secretary, Mrs Anson Chan, dines with the visiting Director of the Hong Kong and Macao Affairs Office of the Chinese State Council, Mr Lu Ping. They discuss a range of transitional issues of concern to the community. Mrs Chan pays a reciprocal visit to Mr Lu in Beijing on April 26.
Radio Television Hong Kong goes off the air for 47 minutes after lightning strikes a transmitter during one of the year's wettest thunderstorms.
Hong Kong plays host to a series of four meetings of the Pacific Economic Co-operation Council.
The 12th and final tube of the Western Harbour Crossing, Hong Kong's third road tunnel linking the island with Kowloon, is laid on the seabed under 17 metres of water off West Kowloon.
The Governor leaves for a 10-day visit to Canada and the United States. Hong Kong and Singapore sign an air services agreement, which will guarantee the continuation of air services links between both places beyond 1997.
A Chinese delegation led by the Director of Vocational Skills Development of the Ministry of Labour, Mr Zhang Xiaojian, arrives in Hong Kong as part of a series of sponsored visits.
The Director of Marine, Mr Ian Dale, visits Beijing to discuss maritime safety and operational transitional issues with the Chinese Maritime Safety Administration.
CALENDAR OF EVENTS IN 1996
7
9
11
13
14
22
23
27
28
29
Hong Kong plays host to the 12th meeting of the Asia Pacific Economic Co-operation (APEC) Working Group on Regional Energy Co- operation. More than 70 officials from 17 economies exchange views on energy supply and demand in the region.
The Governor meets President Bill Clinton at the White House. Mr Patten argues for unconditional renewal of China's Most Favoured Nation status.
The Director-General of Industry, Mrs Regina Ip, leaves for a two-week visit to the United States in a bid to promote inward investment in local manufacturing industries.
Members of various national parliaments take part in the eighth Commonwealth Parliamentary Seminar in Hong Kong.
The Financial Secretary, Mr Donald Tsang, leads a delegation to Kuala Lumpur, Singapore and Bangkok to strengthen business ties with members of APEC and to identify opportunities for building a strategic business partnership with them.
The Sino-British Land Commission agrees that the 1996/97 Land Disposal Programme should amount to 153.01 hectares.
The Commissioner for Labour, Miss Jacqueline Willis, visits Beijing to meet officials of the Department of Foreign Economic Co-operation and the Ministry of Labour. They discuss the regulation of Chinese imported to work in Hong Kong.
At his second Drugs Summit, the Governor unveils a $30 million package of initiatives to boost a campaign against drug abuse. The 32 proposals cover law enforcement, preventive education, treatment, rehabilitation and research.
The Chief Secretary, Mrs Anson Chan, embarks on a three-week visit to seven US cities. She launches the Hong Kong-USA '96 promotion in New York on June 3.
The Commander British Forces Hong Kong, Major-General Bryan Dutton, goes to Shenzhen to meet the Commander of the future Hong Kong garrison of the People's Liberation Army (PLA), Major-General Liu Zhenwu.
The Governor in Council endorses measures to address the issue of better-off tenants in public rental housing. They will be encouraged to buy their own homes.
The Chief Justice, Sir Ti Liang Yang, pays a three-day visit to Beijing at the invitation of the Chinese Judges' Association.
The Secretary for Recreation and Culture, Mr T H Chau, (retitled Secretary for Broadcasting, Culture and Sport on June 8), visits Singapore at the invitation of the Minister for Information and the Arts, Brigadier-General George Yeo.
CALENDAR OF EVENTS IN 1996
30
June
3
6
11
12
14
18
28
The British and Chinese sides of the Airport Committee sign an agreement to build a second runway at the new airport at Chek Lap Kok.
Hong Kong organises a large-scale promotion, Hong Kong-USA '96, in New York, Dallas and Los Angeles up to June 11. Activities feature business conferences, fashion shows, concerts, film festivals, lectures, an exhibition and a variety show.
Prominent businessman Mr Tung Chee Hwa resigns from the Executive Council after three and a half years in that body.
Six workers die when a cantilever scaffold collapses at an airport railway construction site in Kwai Chung.
Maritime administrators from seven Asian countries attend the second Asian Shipping Forum in Hong Kong. Safety at sea and protecting the environment are among topics discussed.
More than 300 delegates of 140 member countries and territories of the World Customs Organisation and various associated international bodies gather in Hong Kong for their 1996 conference. Hong Kong became a member in 1987 and will continue to be a separate customs territory and a full organisation member beyond July 1, 1997.
Urban renewal measures are announced to speed up and widen the scope of redevelopment. In the longer term, the government will consider upgrading the Land Development Corporation to a statutory Urban Renewal Authority and setting up a fund to encourage proper building maintenance.
A Sino-British agreement on new air traffic rights covering Hong Kong lets the territory's airlines overfly China on major services to Hanoi, Europe and North America.
The Chief Secretary, Mrs Anson Chan, meets the US Secretary of State, Mr Warren Christopher, in Washington DC. She has discussions with the National Security Adviser, Mr Anthony Lake and Senate majority leader, Senator Trent Lott.
Governor Patten formally approves a 123-hectare extension to Sai Kung Country Park covering the Wan Tsai Peninsula and three adjacent islands at Hoi Ha Wan.
The Secretary for Transport-designate, Mr Gordon Siu, leads a delegation to Beijing and Fuzhou for general familiarisation.
A delegation led by Secretary for Trade and Industry, Ms Denise Yue, leaves for Switzerland to attend an informal ministerial meeting in Lausanne. The meeting discusses the programme of the World Trade Organisation.
CALENDAR OF EVENTS IN 1996
July
1
3
5
13
16
26
27
29
31
August
9
The Chief Secretary, Mrs Anson Chan, pays a three-day visit to London. She meets the British Prime Minister to discuss latest developments in Hong Kong.
The Exchange Fund Advisory Committee approves in principle the setting up of a mortgage corporation, initially to be owned by the government. It will buy mortgage loans for its own portfolio and issue mortgage-backed securities.
The Governor leaves for Brussels and London. He will meet the President of the European Commission, Mr Jacques Santer, and the President of the European Parliament, Mr Klaus Hansch. In London he will meet the Prime Minister and Foreign Office officials.
The Director-General of Industry, Mrs Regina Ip, departs for a four- day visit to Toronto in bid to attract overseas industrialists to invest in Hong Kong.
A comprehensive planning framework for Hong Kong up to the year 2011 is spelt out in a consultative document on a territorial development strategy review.
The Commander of the future PLA garrison in Hong Kong, Major- General Liu Zhenwu, makes his first visit to Hong Kong, where he meets Major-General Dutton and visits units of the Royal Navy, the Army and the Royal Air Force.
The government publishes the Town Planning White Bill, which seeks to make the statutory planning process more accountable to the public and more effective in guiding developments towards a more efficient land use pattern. Two months are allowed for public inspection.
Locally enlisted Chinese soldiers of the Hong Kong Military Service Corps become British Army pistol shooting champions after nine days of competition at Bisley Ranges, England.
The local telecommunications market will expand significantly after the Sino-British Joint Liaison Group agrees to the issuing of six personal communications services licences.
In Atlanta, USA, windsurfer Miss Lee Lai-shan wins Hong Kong's first gold medal in its Olympic history.
The underlying foreign currency reserves held in the Exchange Fund rank the seventh-largest in the world at the end of June.
The Acting Governor, Mrs Anson Chan, announces the setting up of a fund for athletic development in recognition of Hong Kong's Olympic success. It will give one dollar for every dollar contributed by the community. The government's commitment is capped initially at $8 million.
CALENDAR OF EVENTS IN 1996
15
24
27
28
29
September
1
6
9
The Equal Opportunities Commission issues draft codes of practice on employment under the Sex Discrimination Ordinance and the Disability Discrimination Ordinance for a month-long consultation.
Nominations open for the 400-strong Selection Committee which will choose the Chief Executive and members of the Provisional Legislature of the Hong Kong Special Administrative Region.
Future PLA garrison Commander Major-General Liu starts a nine-day working visit to Hong Kong.
Attorney General Mr Jeremy Mathews attends the 11th Commonwealth Law Conference in Vancouver.
A wheelchair fencer, Mr Ben Cheung Wai-leung, wins his fourth gold medal at the Paralympic Games in Atlanta. Hong Kong wins a total of five gold, five silver and five bronze medals, the territory's finest achievement at the Paralympics.
The Financial Secretary, Mr Donald Tsang, pays a courtesy call on Indonesian President Soeharto to update him on the latest developments in the territory and preparations for the change of sovereignty in 1997.
The visiting Japanese Foreign Minister, Mr Yukihiko Ikeda, meets the Acting Governor, Mrs Anson Chan. They discuss a wide range of issues of mutual concern. Mrs Chan welcomes his assurance that Japan will treat holders of Hong Kong Special Administrative Region passports differently from Chinese passport holders.
The Financial Secretary, Mr Donald Tsang, calls on New Zealand Prime Minister, Mr James Bolger, during a three-day visit to the country. The visit is part of his mission to strengthen ties between Hong Kong and other APEC economies.
A Chinese delegation led by the Director-General of the Department of Statistics on Investment in Fixed Assets under the State Statistical Bureau, Mr Liu Chengxiang, visits Hong Kong. This is one in a series of sponsored visits between China and Hong Kong.
The Secretary for Health and Welfare, Mrs Katherine Fok, visits Beijing and Xian under a sponsored visit programme to enhance mutual understanding of systems in Hong Kong and the mainland.
The Chief Justice, Sir Ti Liang Yang, announces his resignation with effect from November 4, saying he wishes to known as Mr Yang Ti Liang following his decision to accept nomination for the post of Chief Executive of the Hong Kong Special Administrative Region.
The Hong Kong Monetary Authority is invited to join the Bank for International Settlements, the Swiss-based forum promoting co- operation among central banks. The invitation is considered a clear
CALENDAR OF EVENTS IN 1996
12
14
15
17
19
23
26
27
recognition of Hong Kong's status as a leading and autonomous international financial centre.
The Governor chairs his third. summit meeting to address unemployment and to discuss training programmes for local workers. The session concludes with a government commitment to raise local workers' skills, clamp down further on illegal workers, and to establish a generally accepted scheme for labour importation.
The British Minister with responsibility for Hong Kong, Mr Jeremy Hanley, visits the territory to update himself on the latest developments.
The Secretary for Health and Welfare, Mrs Katherine Fok, leaves for Auckland to attend the 18th World Congress of Rehabilitation International.
A total of 5 791 people nominate themselves for the 400 positions available on the Selection Committee that will choose the HKSAR's first Chief Executive and members of the Provisional Legislature.
The Director-General of Trade, Mr Alan Lai, leaves on a four-day visit to Beijing and Dalian to further contacts between the Trade Department and corresponding mainland authorities.
The Sino-British Joint Liaison Group, meeting in Beijing, endorses an agreement reached by commercial parties to the Container Terminal No. 9 project on the rationalisation of berths at Kwai Chung.
Hong Kong launches its first promotion in Australia, which is staged in Sydney, Canberra and Melbourne. It aims to strengthen economic and trade links and boost Australian confidence in the territory's future. Programmes feature business seminars, luncheons, discussions with business leaders and a pop concert. The Chief Secretary, Mrs Anson Chan, leads a delegation of businessmen and senior officials to the country. She officiates at the opening of Hong Kong House in Sydney, home to the Hong Kong Economic and Trade Office, the Trade Development Council and the Hong Kong Tourist Association.
Activist Mr David Chan Yuk-cheung drowns during a protest trip to the Diaoyu Islands, ownership of which is disputed by China, Japan and Taiwan.
The Financial Secretary, Mr Donald Tsang, leaves for Washington to attend the 1996 annual meetings of the boards of governors of the International Monetary Fund and the World Bank.
British and Chinese team leaders in the Sino-British Joint Liaison Group sign an agreement on the handover ceremony for Hong Kong, which will take place around midnight on June 30, 1997.
The Chief Secretary, Mrs Anson Chan, calls on Australian Prime Minister John Howard. Mr Howard assures her that his government will do everything possible to facilitate travel of Hong Kong people to Australia.
CALENDAR OF EVENTS IN 1996
30
October
2
3
7
8
9
10
11
14
Senior business executives from 18 member economies of the Asia- Pacific Economic Co-operation forum visit Hong Kong for the third meeting of its Business Advisory Council.
The Chief Secretary unveils the 1996 Progress Report, which shows that the government has completed, on target, 646 out of 692 policy commitments made between 1992 and 1995. This represents a success rate of 93 per cent.
The Governor presents his final policy address to the Legislative Council.
Crown Solicitor Ian Wingfield leads a team to a hearing in Geneva on Hong Kong's initial report on the implementation of the United Nations Convention on the Rights of the Child.
The Hong Kong Monetary Authority opens its first overseas representative office in New York. The Financial Secretary officiates.
Protesters from Hong Kong and Taiwan break through a cordon of Japanese vessels to land on the Diaoyu Islands.
The Financial Secretary, Mr Donald Tsang, signs an investment promotion and protection agreement with Belgium and another with Luxembourg at Palais d'Egmont.
The Director-General of Industry, Mr Francis Ho, leads a delegation of the Electronics Committee of the Industry and Technology Development Council to Korea to study the development of high-tech industries.
The Financial Secretary, Mr Donald Tsang, meets Luxembourg Prime Minister Jean-Claude Juncker. The following day he signs the Hong Kong-Italy Air Services Agreement at the Italian Ministry of Transport and meets the Italian Foreign Minister, Mr Lamberto Dini, in Rome.
The Director of Home Affairs, Mrs Shelley Lau, leads a delegation from the Home Affairs Department to Beijing for a four-day visit as part of their normal contacts with Chinese officials.
The Secretary for Economic Services, Mr Stephen Ip, signs an air services agreement with India.
The Financial Secretary, Mr Donald Tsang, signs an investment promotion and protection agreement with the State Secretary of Austria, Mrs Benita Ferrero-Waldner.
Nominations for the post of the Chief Executive of the Hong Kong Special Administrative Region open. The exercise will end on October 28.
The United Nations Convention on the Elimination of All Forms of Discrimination Against Women extends to Hong Kong.
CALENDAR OF EVENTS IN 1996
16
18
22233
28
29
The Secretary for Planning, Environment and Lands, Mr Bowen Leung, announces measures to protect the Indo-Pacific hump-back dolphin commonly called the Chinese white dolphin. These include establishing marine parks in Hong Kong's western waters where the animals are mostly found.
The Governor leaves for London on a duty visit to brief ministers on the latest developments in Hong Kong.
A team headed by the Solicitor General, Mr Daniel Fung, attends a hearing of the United Nations Human Rights Committee in Geneva to answer questions arising from a supplementary report on Hong Kong.
The Secretariat of the Special Administrative Region Preparatory Committee says 31 applications have been received from people hoping to be selected Chief Executive of the Hong Kong Special Administrative Region. The application forms will be vetted by the presidium of the Preparatory Committee.
The Attorney General, Mr Jeremy Mathews, launches a victim's charter setting out the rights of crime victims and their immediate family members as well as the standards of services they can expect from law- enforcement agencies and government departments.
November
1
2
8
10
11
The last Gurkha infantry battalion in Hong Kong, 1st Battalion The Royal Gurkha Rifles, makes a ceremonial farewell to Hong Kong by beating the retreat at its headquarters at Malaya Lines, Shek Kong.
The Royal Air Force's last squadron in the region, 28 (Army Co- operation) Squadron, returns to Kai Tak after an absence of almost 20 years. It will depart from the territory in June 1997
Eight people are confirmed as candidates for the post of Chief Executive of the HKSAR after a list of 31 applicants is vetted by the presidium of the Preparatory Committee of the Hong Kong Special Administrative Region.
The membership of the 400-strong Selection Committee is announced at the sixth plenary session of the Preparatory Committee of the Hong Kong Special Administrative Region.
Hong Kong starts a two-day conference on AIDS, its first on the subject.
Governor Patten leaves for London, Paris and Bonn for a brief visit. The main purpose of the trip is to lobby for the easiest possible access for holders of the Special Administrative Region passport.
Hong Kong is ranked the world's fifth-best city for business after Toronto, London, Singapore and Paris, according to Fortune magazine.
CALENDAR OF EVENTS IN 1996
13
14
20
28
December
5
10
11
16
18
21
23
31
Senior representatives of the joint Liaison Group sign an agreed minute on arrangements for the transfer of the Exchange Fund to the HKSAR Government on July 1, 1997.
The Hang Seng Index passes 13 000 points for the first time.
Hong Kong's worst commercial building fire in almost 50 years, in Nathan Road, Jordan, kills 40 people and leaves 80 injured. Another fire in Causeway Bay two days later adds to calls for upgrading old premises.
Governor Patten meets Japanese Prime Minister Mr Ryutaro Hashimoto in Tokyo. Mr Hashimoto assures Mr Patten that Japan will treat the SAR passport differently from that of the People's Republic of China. The following day Mr Patten discusses Hong Kong matters with the Canadian PM, Mr Jean Chretien, in Tokyo.
The Refugee Co-ordinator, Mr Brian Bresnihan, says Whitehead detention camp will close on January 3 and all Vietnamese migrants will be returned by mid-1997.
Two groups totalling 243 Vietnamese migrants return to Hanoi on the 84th and 85th flights under the Orderly Repatriation Programme. They bring to 8 415 the total number repatriated under the programme since November 1991.
Mr Tung Chee Hwa is elected first Chief Executive of the Hong Kong Special Administrative Region, which will come into being on July 1, 1997.
For the third consecutive year, the Washington-based Heritage Foundation declares Hong Kong to have the world's freest economy. Mr Tung Chee Hwa receives from Chinese Premier Li Peng a decree appointing him the first Chief Executive of the Hong Kong Special Administrative Region. Mr Tung meets President Jiang Zemin.
A 60-member provisional legislature of the HKSAR is returned by the Selection Committee in Shenzhen.
The Code on Access to Information is extended to cover all 91 government branches and departments.
Governor Patten meets Chief Executive (Designate) Tung Chee Hwa at Government House and discusses government help with staff and premises during the remaining transition period.
An estimated 200 000 people watch Hong Kong's first New Year's Eve fireworks display, staged off Tuen Mun.
T
Hong Kong House
Accompanied by the Speaker of the New South Wales Legislative Assembly, Mr John Murray (Left) and the Australian Attorney- General, Mr Daryl Williams, the Chief Secretary,
Mrs Anson Chan, officiates at the opening of Hong Kong House, in Sydney, in September.
YT
LAGAN
ASPHALT SURFACES
LAGAN
LAGAN
SURFACES
AGAN
SPHALT SURFACES
▲ British Prime Minister John Major sits at the wheel of a steam roller used in forming the surface of the southern runway at Hong Kong's new airport at Chek Lap Kok. Mr Major visited the territory in March and met the Governor,
business leaders, Executive
and Legislative Councillors,
and community leaders.
RIGHT: Britain's Foreign Secretary, Mr Malcolm Rifkind, has a firm grasp of matters as he leads the topping-out ceremony for Britain's new official headquarters in Admiralty.
VACAN
ti
HO
Chief Secretary Mrs Anson Chan with actor Charlton Heston, film mogul Raymond Chow and actress Siao Fong-fong during her visit to Washington in June as part of the Hong Kong-USA '96 promotion. BELOW: Hong Kong's Financial Secretary, Mr Donald Tsang (left), chats with the Thai Deputy Prime Minister, Dr Amnuay Viravan,
in Bangkok as part of a regional visit to promote ties with members of the Asia Pacific Economic Co-operation forum.
每
The President of the European Commission, Mr Jacques Santer,
welcomes the Governor, Mr Christopher Patten, to Brussels during his visit in July.
1 HONG KONG HISTORY
By the Governor, the Right Honourable Christopher Patten
In the hall of Government House hangs a picture by one of my favourite young Hong Kong artists, Wang Hai. It is called 'Hong Kong History'. It is a dark, brooding picture, with only the slightest touches of colour in it to tell you that it is not simply an enlargement of a black-and-white photograph from the time depicted, October 1910. The occasion it shows is the last visit that Mandarins from Imperial China made to Hong Kong, for the opening of the Kowloon-Canton railway, a development that was to accelerate Hong Kong's growth and by the late 1920s help it to overtake Shanghai in the handling of China's international trade. The Mandarins in their traditional costumes stand around a dignified, elderly, Viceroy of Guangdong and Guangxi, all looking a little lost, out of place, out of time. At the end of the line, self- assured, hands thrust haughtily into pockets, stands a top-hatted European, the Chairman of the railway company, perhaps. The world he represented would wait until 1941 to be swept away. The world the Mandarins knew would last for only a few months before the 1911 revolution brought down the Ching Dynasty. And, in the date of its composition, June 1989, the painting carries yet another reference to the stirring events that have formed the backdrop to Hong Kong's history.
Since 1898, the year 1997 has been marked down in the calendar as a date of special significance, and today we are all hearing a lot about history. Films are being made, articles written, books published. Two themes tend to predominate, 'End of Empire' and 'Return of the Dragon'. Under the first, Hong Kong is looked at nostalgically, the last significant outpost and one of the most singular successes of Britain's imperial adventure. 1997 is the end of that story. The second theme is also largely about what is ending in 1997: the imperialist, opium-pushing intrusion into China, the end of humiliations inflicted on a weak Chinese government in the nineteenth century. It is very easy to become partisan on either of these interpretations, to overlook the truth in each, to overlook Hong Kong's own history, to overlook what Hong Kong now is.
Whatever the arguments about the rights and wrongs of the imperialist past, what has happened in Hong Kong is the coming together of two civilisations. The mostly Chinese men and women of this community have drawn on their own culture, but also on the ideas, the laws, the education and the arts of many other lands, adopting and adapting them to the growing needs of this city and its people. They have fashioned their own, usually successful solutions to maintaining a lively, harmonious society under unparalleled constraints of space and population density. This is not the debris from the collision of two civilisations but a new creation of them, offering fresh ideas to both.
1
HONG KONG HISTORY
2
What I've written so far begs some statement about what I think Hong Kong is like today. The statistics on that are to be found copiously throughout the rest of this book. But figures need to be fleshed out. I find my thoughts drawn back often to two very personal moments. One was shortly after my arrival as Governor here in 1992, when I was finding out about welfare services. On a hot, wet day in July, I had been to a rehabilitation centre and emerged to find a number of parents of handicapped children waiting in the rain to petition me. I was struck by their patience, by the moderation of their requests compared to the difficulties they faced, by their love and concern for their children. Those are qualities that I have met time and time again here. The moderation, particularly in the politics, is remarkable given the extraordinary changes that Hong Kong has experienced and is going through. It is a testimony, also, to the social stability that has been fostered in Hong Kong through deliberate change in response to social need. The second event was more traumatic, seeing the families of those who had died or been injured in the terrible fire at the Garley Building, poor people devastated by the loss of children, brothers, sisters. It was a salutary reminder that while the boosters of Hong Kong, myself included, often talk about how median incomes here have exceeded US$25,000 a head, the majority of Hong Kong's citizens have not attained that level of comfort, that their hopes for the future are not founded on financial resources but on prospects for their sons and daughters, on the exchanges and satisfactions of family life.
The glitz of society life, the full throttle thunder of economic activity, the fascination of living on the edge of the extraordinary changes that have swept through China over the past 150 years, all those things tend to take the eye away from a vital part of Hong Kong's story, the creation of a resilient, sophisticated, highly educated society, ambitious to improve the lot of its members, caring to those in need, offering freedom to exercise abilities. How many would have predicted such an outcome from a community of refugees and merchant venturers ruled over by a colonial power? How many realise how important it is to Hong Kong's present success and future prospects?
Economic opportunity has been indispensable to Hong Kong, but without the freedom and ability to take and to create that opportunity it would have meant little. Investment in education has been of greater importance than equities, while civil liberties have become inextricably linked with the success of the economic liberties this city affords. And it is worth asking how far history, or rather the fact that people coming here have been able to leave old histories behind them and start again, has been important to the shaping of this society. That is not to suggest that people here have forgotten their pasts, no-one does that. Memories of home towns from Hankow and Santau to Bombay and Arbroath have been brought here, but the liberty that Hong Kong has offered to people to live at peace with the past has not been the least of the freedoms that it has given.
To ask China to forget the colonial episode is no more realistic than to expect local people to have any deep commitment to a colonial administration, an administration that, despite near-complete localisation, could never become 'our government' in the way that 'Hong Kong people ruling Hong Kong' might do if the words are allowed to mean what they say. But when the convenient paper target of the last veneer of colonial rule is peeled away with my departure at midnight on the 30th of June, there is an opportunity to look afresh at what lies underneath. And what is that? Not some seething pot of repressed ambitions, conflicting ideologies and burning grievances,
HONG KONG HISTORY
but a mature, well-balanced society. A society that has argued cogently and successfully for a steadily increasing say in the way that it is governed. A community that has developed institutions and procedures through which matters of public interest can be debated and settled openly, through which tensions and difficulties can be detected early and addressed, not repressed. A society in which law is respected because it is developed in harmony with changes in society, through a process that is understood and accepted by the community, and because it is upheld impartially. A city that is tolerant of different ideas, so is able to respond smoothly and promptly to changing conditions. A place that by safeguarding the liberties of every one of its citizens can be invigorated by each in return.
Hong Kong remains a community with many problems. We face distortions and disparities in housing, discrimination against the handicapped and new immigrants, demands to improve primary and secondary education. Doubtless when those matters have been addressed, others will have emerged to be debated and resolved. But there can be no doubt that Hong Kong has the ability, the ideas, the resources, the tested mechanisms of public administration, to deal competently with whatever conditions arise locally. The real difficulties for Hong Kong will only come from local laws and institutions being warped to suit external pressures and demands, and so becoming less sensitive to local needs and conditions. It is my hope, it must be the hope of anyone who cares for Hong Kong, that no such threat attains reality.
Hong Kong, for all its imperfections, is a window on the future, for China, for the region. It is an island of stability and social progress, a model for anyone seeking to build a peaceful, prosperous and successful community. It would be a tragedy for far more than Hong Kong if anyone who has a hand in shaping Hong Kong's history today is blinded to that by remembrance of things past. Looking back at history can be an uncomfortable experience at the best of times, but the dangers come not from forgetting but from making history a tool of ideology, from attempts to rectify a past that is already fixed, rather than to respond open-heartedly to what the present has to offer, to welcome reconciliation and the building of new things.
3
2 CONSTITUTION
AND ADMINISTRATION
4
THE Hong Kong Government is headed by the Governor, who represents the Queen in the territory. He has the ultimate direction of the administration of Hong Kong. An Executive Council offers advice to the Governor on important matters of policy. At the central level of the three-tier system of representative government, the Legislative Council legislates, controls public expenditure and monitors the performance of the Administration. At the regional level, the two municipal councils provide public health, cultural and recreational services in their respective regions. At the district level, 18 district boards offer advice on the implementation of policies in their districts and provide an effective forum for public consultation. The development of these institutions has evolved over the years to meet the aspirations of the community. The 1994/95 cycle of elections further strengthened the basis of Hong Kong's electoral system established through an open and fair process.
Under the terms of the Sino-British Joint Declaration on the Question of Hong Kong, which was ratified on May 27, 1985, Hong Kong will become a Special Administrative Region of the People's Republic of China with effect from July 1, 1997.
Constitution
The Letters Patent establish the basic framework of the administration of Hong Kong. They, together with the Royal Instructions, form the written constitution of Hong Kong. The Letters Patent create the office of Governor and Commander-in- Chief of Hong Kong, and require him to observe laws and the instructions given to him by the Queen or the Secretary of State. They also deal with the constitution of the Executive and Legislative Council, the Governor's powers in respect of legislation, the disposal of land, the appointment of judges and public officers, pardons, and the tenure of office of Supreme Court and District Court judges.
The Royal Instructions deal with the appointment of members of the Executive Council, the nature of proceedings in the Executive Council, the Governor's responsibility to consult the Executive Council on important policy matters, and his right to act against its advice (a right exercised only once, in 1946). They also deal with the membership of, and election to, the Legislative Council, the nature of proceedings there, and the nature of legislation which may not be passed.
Various well-established practices determine the way in which these constitutional arrangements are applied. The Hong Kong Government seeks wide consultation with the community in determining its needs and in designing policies to meet such needs. Although from the constitutional instruments described above, Her Majesty's
CONSTITUTION AND ADMINISTRATION
Government would appear to have substantial control over the way in which Hong Kong is run, in practice the territory largely controls its own affairs and determines its own policies. Similarly, the Governor, by convention, rarely exercises the full extent of his powers.
Role of the Governor
The Governor is appointed by the Queen and derives his authority from the Letters Patent. He has ultimate direction of the administration of Hong Kong and is also the titular Commander-in-Chief of the British Forces stationed in Hong Kong. He makes policy decisions on the advice of the Executive Council, and makes laws by and with the consent of the Legislative Council. As head of the government, he presides at meetings of the Executive Council. The present Governor, the Right Honourable Christopher Patten, assumed office on July 9, 1992, and is the 28th incumbent.
The System of Government
Executive Council
The Executive Council consists of three ex officio members- the Chief Secretary, the Financial Secretary and the Attorney General - and eight other members appointed by the Governor with the approval of the Secretary of State. The council normally meets once a week, and its proceedings are confidential, although many of its decisions are made public.
The Governor is required by the Royal Instructions to consult the council on all important matters of policy. The Governor in Council - the Governor acting after consulting the Executive Council is Hong Kong's central and highest executive authority on policy matters. In practice, decisions are arrived at by consensus rather than by division. Members tender their advice in an individual capacity, and the council is collectively responsible for the decisions made. Individual non-official members do not hold personal responsibility for given subjects or portfolios. That is a matter for the government.
Besides policy matters, the Governor in Council determines appeals, petitions and objections under those ordinances which confer a statutory right of appeal. The Executive Council also considers all principal legislation before it is introduced into the Legislative Council, and is responsible for making subsidiary legislation. Its advice on matters of policy involving the expenditure of public funds is subject to the approval of the necessary funds by the Finance Committee of the Legislative Council.
Legislative Council
The Legislative Council has 60 members. Thirty members come from functional constituencies, each representing an economic, social, professional or other sector of the community; 20 are returned by direct elections in geographical constituencies which cover the whole territory; and 10 are elected by the Election Committee Constituency comprising elected members of the district boards. Legislative Councillors elect one of their fellow members as President.
The Legislative Council's procedures are governed by its Standing Orders, which derive their authority from the Hong Kong Royal Instructions, and by the Legislative Council (Powers and Privileges) Ordinance. The main functions of the Legislative
5
CONSTITUTION AND ADMINISTRATION
6
Council are to enact laws, control public expenditure and monitor the performance of the government. The government is responsible for initiating legislative and public funding proposals to the Legislative Council for consideration.
Major legislation is enacted in the form of bills. Most business, including the passage of bills, is transacted by way of motions which are decided by the majority of the members present. A bill passed by the Legislative Council becomes law when it receives the Governor's assent. After the Governor's assent, a bill becomes an ordinance without being subject to external approval, although the Queen has reserve powers to disallow an ordinance. During the 1995-96 session, the Legislative Council passed 65 bills.
Apart from the enactment of legislation, the council holds two major debates in each legislative session: a wide-ranging debate on government policies which follows the Governor's address at the opening of a new session in October each year; and the budget debate on financial and economic affairs concerning the annual Appropriation Bill, which takes place in March.
^
Members of the council may question the government on policy issues, either by seeking information on such issues or asking for official action on them. Members may request either oral or written answers to the questions, and may put forward supplementary questions for the purpose of elucidating an answer already given. Altogether, 140 oral and 659 supplementary questions on a wide range of topics were asked during the 30 regular sittings in 1995-96, and 433 questions were tabled for written reply by the administration.
The council meets in public, normally on Wednesdays, to transact council business. About once every two months, the Governor answers questions from members at a special sitting held on a Thursday.
All Legislative Council sittings and almost all meetings of its committees and subcommittees are open to the public. The increased transparency of the Legislative Council has helped promote better awareness and understanding of the constitutional role and functions of the council.
The council has three standing committees - the Finance Committee, the Public Accounts Committee, and the Committee on Members' Interests. A House Committee is constituted to consider bills, subsidiary legislation and other matters concerning the council's business.
Finance Committee
The Finance Committee of the Legislative Council comprises all members of the council except the President. Members elect the chairman and deputy chairman from among themselves.
The Finance Committee scrutinises public expenditure, both at special meetings held in March to examine the draft estimates of expenditure for the year ahead, and at regular meetings held between October and July to consider proposals which entail changes to the approved estimates or to note financial implications of new policies. These meetings are held in public. From time to time, the Financial Secretary briefs members on important financial issues and on budget matters.
The Finance Committee is assisted by two subcommittees, Establishment and Public Works, in the performance of its functions. The subcommittees also meet in
CONSTITUTION AND ADMINISTRATION
public. The Establishment Subcommittee examines the administration's proposals for the creation, redeployment and deletion of permanent and supernumerary posts remunerated from the directorate pay scales, the creation of directorate-level consultancy positions for periods lasting more than 12 months, and changes to the structure of civil service ranks and grades (including pay scales, new grades and new ranks). It makes recommendations to the Finance Committee on such proposals and reports to the Finance Committee on the size and cost of the civil service and the changes in departmental establishments.
The Public Works Subcommittee examines and makes recommendations to the Finance Committee on the administration's proposals for the upgrading of projects to, or downgrading from Category A of the Public Works Programme, or changes to the scope and/or approved estimates of projects already in that category.
The Finance Committee may determine the functions of its subcommittees. In June. 1996, it decided to expand the terms of reference of the Public Works Subcommittee to cover the examination of capital subvention works projects under the Capital Works Reserve Fund.
Public Accounts Committee
The Public Accounts Committee's prime concern is to see that public funds are spent on the purposes for which they are granted, that full value is obtained for the sums expended, and that the government has not been faulty or negligent in its conduct of financial affairs.
The committee has a chairman and six members appointed by the President of the council. It examines the reports of the Director of Audit on the government's annual statements of accounts, and looks into matters relating to the performance of the Director of Audit's duties and value for money audits carried out by the Director.
In examining the issues raised in the Director of Audit's reports, the Public Accounts Committee may invite the controlling officers for certain heads of expenditure to its public hearings to give evidence. The committee's report, based on these hearings, is tabled in the Legislative Council within three months of the tabling of the Director of the Audit's report to which it relates.
The government's response to the committee's report is contained in a government minute, which describes the measures taken to give effect to the committee's recommendations or explains why these recommendations cannot be accepted. The government minute is also tabled in the Legislative Council, within three months of the tabling of the Public Accounts Committee's report.
Committee on Members' Interests
The Committee on Members' Interests has a chairman and six members. It examines the arrangements for the compilation, maintenance and accessibility of the Register of Members' Interests. It also considers matters pertaining to the declaration of interests by council members and matters of ethics in relation to the conduct of members in their capacity as such, and makes recommendations on matters relating to members' interests.
7
CONSTITUTION AND ADMINISTRATION
8
House Committee
The House Committee comprises all members of the Legislative Council except the President. Its chairman and deputy chairman are elected from among its members. The House Committee co-ordinates the business of the council and most of its committees.
The House Committee may appoint bills committees to study bills and sub- committees to consider specific subsidiary legislation and issues of public concern.
When the council is in session, the House Committee meets every week. Regularly on the agenda of these meetings are reports on bills and subsidiary legislation introduced into the Council; questions that members intend to put to the government; motions and bills to be debated; and any other matters relating to the business of the council.
Bills Committee
After a bill has been introduced into the Legislative Council, it is referred to the House Committee which may allocate the bill to a bills committee for detailed scrutiny. Any member of the Legislative Council, other than the President, may join a bills committee. The chairman is elected among members of the bills committee.
Government officials and members of the public may be invited to attend such meetings. A bills committee may consider the principles and merits of a bill allocated to it for scrutiny. It may also consider the bill's detailed provisions and any amendments relevant to the bill. A bills committee may appoint subcommittees for the purpose of assisting the committee in the performance of its functions. A bills committee is dissolved as soon as the bill it has considered passes through the Legislative Council or when the House Committee so decides.
Panels
Panels are committees of the Legislative Council set up to monitor and examine government policies and issues of public concern. Eighteen panels have been formed covering the following policy areas: administration of justice and legal services; constitutional affairs; economic services; education; environmental affairs; financial affairs; health services; home affairs; housing; information policy; planning, lands and works; manpower; public service; recreation and culture; security; trade and industry; transport; and welfare services.
Council members, other than the President, may join any of the panels. Each panel is headed by a chairman and a deputy chairman elected from among its members. It may examine any issue, including legislative and financial proposals, that touches on the policy area with which it is concerned. In the course of discussion, the panel may invite senior government officials and representatives from different sectors of the community to provide information on the matters being examined. The panel may summarise its findings and make recommendations on important issues in the form of a report to the House Committee, and may table the report at a council sitting.
A panel may form subcommittees to study specific issues. In 1996, six subcommittees were formed to assist the respective panels studying specific subject areas: reviewing matters related to the transparency of advisory and statutory bodies in Hong Kong, monitoring the Long Term Housing Strategy Review, examining the Police Management Review Reports, monitoring progress of the Western Corridor
CONSTITUTION AND ADMINISTRATION
Railway projects, studying the Comprehensive Social Security Assistance Scheme and monitoring progress of the legislation for the mentally handicapped.
A panel can also conduct public hearings to solicit views from the public on issues of public concern. Public hearings were held in 1996 by the Panel on Home Affairs to solicit views on issues related to human rights and racial discrimination. The Panel on Constitutional Affairs also conducted public hearings on matters relating to the transition leading up to the change in sovereignty in 1997.
On matters of wide public concern, a panel may conduct enquiries and, for such purposes, may seek authority from the council to exercise the power to summon under the Legislative Council (Powers and Privileges) Ordinance, Cap 382. In 1996, the Panel on Manpower was granted such authority for the purpose of conducting an enquiry into the circumstances surrounding the labour disputes involving imported workers under the Special Labour Importation Scheme for the Airport Core Programme Projects and related issues, and made a series of recommendations to improve the vetting mechanism and administration of the scheme in the light of the findings of the enquiry.
Select Committees
The Legislative Council may appoint select committees to consider matters or scrutinise bills in depth. The purpose is to let small groups of members examine complex problems and report their findings and recommendations to the council. All select committees are dissolved at the end of a session.
Redress System
Legislative Councillors operate a redress system under which members of the public can make representations on, or seek solutions to, problems arising from government policies, decisions and procedures. Under the system, members take turns to be on 'ward duty' during their duty week to meet individual complainants and to give on- the-spot guidance to staff in processing cases.
Cases are examined in the light of government policies and procedures. If members consider a complaint to be justified, they will ask the government department concerned to reconsider the matter or to re-examine the procedures that have given rise to the complaint. Cases involving matters of policy, or of particular importance, are put to the appropriate Legislative Council panels for further consideration. Where a change in policy or in law is considered necessary, members will make recommendations to the appropriate policy branch in the Government Secretariat. Members may also ask questions during council sittings on the problem itself, or the policy giving rise to it.
During the 1995-96 session, more than 1 450 new cases were handled. About 22 per cent were group representations, while the rest were complaints and requests for assistance from individuals. Members initiated 63 case conferences with representatives of the Administration. More than 1 800 telephone enquiries were handled.
Legislative Council Commission and Secretariat
Administrative support and services are provided to the council through a secretariat under the direction of the Legislative Council Commission. The commission is
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chaired by the President of the Legislative Council and comprises 10 other members of the council. It is a statutory body that enjoys managerial and financial autonomy in directing the activities of the secretariat. The secretariat provides a wide range of support services to members, including secretariat services to sittings of the council and its committees, legal services, centralised research and library services, translation and interpretation services, and public information support. Through a representative office in London, members are kept informed of political developments in Britain. The office also helps British opinion-formers to better understand major Hong Kong issues.
Urban Council
The Urban Council is a statutory body with responsibility for the provision of municipal services to some 3.3 million people in the urban areas, representing 53 per cent of the population of Hong Kong. The council plays a key role in safeguarding environmental hygiene and public health as well as providing cultural programmes and recreational facilities.
The council has 41 members: 32 elected from geographical constituencies and one each from the nine urban district boards. It meets formally in public once a month to pass by-laws and deal with financial matters, formal motions and questions on its activities.
The Standing Committee of the Whole Council meets twice monthly to conduct the council's routine business, while its 14 select committees, set up to deal individually with various disciplines among the wide field of civic responsibilities, generally meet at least once a month. There are also 29 sub-committees and working groups which meet regularly to handle specific matters under their parent select committees. All council meetings are open to the public, except for sensitive items which must be discussed in private.
The council's chief executive is the Director of Urban Services, who oversees the operations of the Urban Services Department, which is the largest civilian department in the government structure with a staff of about 16 000. The director is responsible for carrying out the council's policies and implementing its decisions.
The council is financially autonomous and spent about $6.01 billion on council-run activities and projects in 1995-96. A share of the rates forms the main part of its income, with the balance coming from licence fees and other charges.
The council has ward offices throughout the urban areas, where councillors meet the public and advise on a wide variety of matters. Urban residents may also make their views known through the Members' Duty Roster System, whereby councillors are placed on a duty roster to meet the public, by appointment, twice a week.
Regional Council
The Regional Council is the statutory municipal authority responsible for environmental hygiene, public health, sanitation, liquor licensing and the provision of recreational, sports and cultural facilities and services for about three million people in the New Territories.
The council consists of 39 members: 27 elected from geographical constituencies, nine elected by the district boards in each of the nine New Territories districts as their representatives, and three ex officio members who are the chairman and the two vice-
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chairmen of the Heung Yee Kuk. The council's chairman and vice-chairman are elected by members from among themselves.
Council policies are implemented by its executive arm, the Regional Services Department, which is headed by the Director of Regional Services and has a staff of about 10 700. The council is financially autonomous, with its main source of revenue being rates collected in the council area. In 1995-96, this provided about 85 per cent of its total revenue. The rest comes from fees and charges, and rental income (mostly from market stalls). In 1995-96, total revenue amounted to $4.16 billion and total expenditure stood at $3.88 billion.
The council discharges its responsibilities through four functional select committees and a Liquor Licensing Board. The four select committees are responsible for finance and administration, capital works, environmental hygiene, and recreation and culture. The Liquor Licensing Board meets quarterly to consider contested applications.
The council has established nine geographically-based committees to monitor the provision of municipal services and facilities. Each district committee comprises Regional Council members and other members co-opted from district boards and the local community.
All proceedings of the council and its committees are open to the public except when confidential issues such as financial details touching on commercial arrangements are discussed.
The council is represented on several organisations, including the Hong Kong Sports Development Board and the Hong Kong Arts Development Council, whose work is closely related to the council's responsibilities.
District Administration
District boards are statutory bodies which provide a forum for public consultation and participation in the administration of the districts. With effect from October 1, 1994, there are 18 district boards (nine in the urban areas and nine in the New Territories), with 346 elected members and 27 ex officio members who are rural committee chairmen.
The main function of the district boards, established in 1982, is to advise the government on matters affecting the interests or well-being of the people living and working in the districts. Through their advice, important contributions are made to the management of district affairs. District boards are also consulted on a wide range of territory-wide issues.
In 1996-97, $105 million has been made available to the district boards for the implementation of minor environmental improvement and community involvement projects in the districts.
As an important service for residents, each district board operates a 'meet-the- public' scheme, under which residents may meet board members face-to-face to express their views on any district problems. The scheme has been well received by the general public and has provided a direct channel for collecting public views on local issues and reflecting them to the government.
Each district has a district management committee, chaired by the district officer, comprising representatives of departments providing essential services in the district.
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It serves as a forum for inter-departmental consultation on district matters and co- ordinates the provision of public services and facilities to ensure that district needs are met promptly.
The district management committee works closely with the district board and, as far as possible, follows the advice given by the board. To improve communication between the district management committee and the district board, district board chairmen attend district management committee meetings as observers.
Area committees and mutual aid committees were set up in districts in the early 1970s throughout the territory, in support of the Keep Hong Kong Clean Campaign and Fight Violent Crime Campaign. A review of the area committees brought changes in November 1994 relating to their number, composition, terms of reference and geographical coverage. These were introduced to streamline their operations. Area committees encourage public participation in district affairs, help organise community activities and government campaigns, and advise on issues of a local
nature.
Mutual aid committees are building-based resident organisations, established to improve the security, cleanliness and general management of multi-storey buildings. More than 70 area committees and 4 000 mutual aid committees provide an extensive and effective network of communication between the government and the people at the grassroots level.
Attached to the district offices are 19 public enquiry service centres, which provide a wide range of free services to members of the public, including answering general enquiries on government services; distributing government forms and information materials; administering oaths and declarations for private use; and referring cases under the District Board Members' meet-the-public scheme, the free Legal Advice Scheme and Rent Officer Scheme. The public enquiry service centres and central telephone enquiry centre received 2.34 million clients in 1996.
Links Between the Representative Institutions
The Urban Council and the Regional Council, which cover much the same fields in their respective areas, hold liaison meetings and institute joint ventures. The Urban Council and the Regional Council are closely linked to the district boards. Each district board in the urban areas has a representative member on the Urban Council. A similar arrangement exists between the Regional Council and the district boards in the New Territories. In addition, members of the New Territories district boards also sit on the district committees under the Regional Council. Through these channels, the district boards are consulted on a wide range of matters affecting their areas.
New Territories district boards maintain a close relationship with the Heung Yee Kuk, reserving seats for Rural Committee chairmen, who are also ex officio members of the Kuk's executive committee. The Regional Council also has a formal link with the Heung Yee Kuk, through the ex officio membership of the Kuk's chairman and two vice-chairmen on the Council. Since 1991, the two municipal councils and the Heung Yee Kuk have been functional constituencies, each returning one member to the Legislative Council.
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The Electoral System
Voter Registration
Elections to the Legislative Council geographical constituencies, municipal councils and district boards are through a broad franchise. Practically everyone who is 18 years of age or over, and who is a Hong Kong permanent resident or has ordinarily resided in Hong Kong for the preceding seven years, is eligible to apply for registration as an elector in the constituency in which he lives. A registration exercise is conducted each year, although applications for registration can be made at any time of the year. The 1996 General Electoral Roll contains 2.55 million registered electors.
Electoral System for the Legislative Council
The Legislative Council elected in September 1995 has 60 seats: 20 returned by geographical constituency elections, 30 by functional constituency elections, and 10 by an Election Committee. Hong Kong is divided into 20, single-seat geographical constituencies-four on Hong Kong Island, seven in Kowloon, and nine in the New Territories. The franchise for the Legislative Council geographical elections includes all electors on the General Electoral Roll. Electors may vote only in the constituency in which they are registered. They may, however, stand for election in any constituency, provided that they have been ordinarily resident in Hong Kong for the preceding three years, have attained the age of 21, and are nominated by 50 electors in that constituency. The elections are by simple majority.
Each functional constituency represents an economic, occupational or professional group. These are: (1) primary production, power and construction; (2) textiles and garments; (3) manufacturing; (4) import and export; (5) wholesale and retail; (6) hotels and catering; (7) transport and communication; (8) financing, insurance, real estate and business services; (9) community, social and personal services; (10) commercial (first); (11); commercial (second); (12) industrial (first); (13) industrial (second); (14) finance; (15) labour; (16) social welfare; (17) tourism; (18) real estate and construction; (19) financial services; (20) medical; (21) education; (22) legal; (23) engineering; (24) health services; (25) accountancy; (26) architectural, surveying and planning; (27) Urban Council; (28) Regional Council; and (29) rural. Of these, the labour functional constituency returns two Legislative Council members while the other 28 return one member each.
The electorate is made up of relevant persons from designated organisations and trade unions, and working persons. A person who wants to be a functional elector has to be a geographical elector as well.
For functional constituency elections, a candidate must, besides satisfying the usual age and residential requirements, be a registered functional elector of or have a substantial connection with the relevant functional constituency. Each nomination requires 50 subscribers for the nine functional constituencies representing the working population (i.e. functional constituencies (1) to (9) in the preceding paragraph) and 10 for the other functional constituencies, except for the Urban Council and Regional Council functional constituencies which require only five subscribers due to their small electorates. Elections for the Urban Council, Regional Council and Rural functional constituencies are by preferential elimination, while elections for the other functional constituencies are by simple majority.
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The Election Committee, comprising all elected district board members, elects 10 Legislative Council Members. The qualifications for candidature in the Election Committee constituency election are the same as those for the geographical constituency elections, except that each nomination requires five subscribers. Elections for the Election Committee are by the Single Transferable Vote System.
Electoral System for the Municipal Councils and the District Boards
All appointed seats in the Urban Council, Regional Council and district boards have been abolished and elections to these bodies are on a geographical basis. There are 18 district boards with 346 members elected from single-seat constituencies. In the New Territories, the 27 Rural Committee chairmen are ex officio members of the respective district boards.
For the Urban Council, 32 members are elected from geographical, single-seat constituencies, and one each from the nine urban district boards. The Regional Council has 27 members elected from single-seat, geographical constituencies, and nine from the nine New Territories district boards. There are also three ex officio members: the chairman and the two vice-chairmen of the Heung Yee Kuk.
Elections to the district boards and the municipal councils are by simple majority. Electors may vote only in the constituency in which they are registered. The qualifications for candidature in the district board and municipal council elections are the same as those for the Legislative Council geographical constituency elections, except that each nomination requires 10 subscribers.
Boundary and Election Commission
The independent and apolitical Boundary and Election Commission, operating under the Boundary and Election Commission Ordinance since July 1993, reviews and makes recommendations to the Governor on the geographical constituency boundaries of the Legislative Council, the municipal councils, and the district boards. The three-member commission is also responsible for overseeing the conduct and supervision of elections, keeping under review the procedure for these elections and the arrangements for registration of electors to ensure that the elections are conducted openly, honestly and fairly. The Registration and Electoral Office, a government department headed by the Chief Electoral Officer, is the executive arm of the Boundary and Election Commission. It works under the commission's direction and carries out its decisions.
Advisory Boards and Committees
The network of advisory boards and committees is a distinctive feature of the system of government. It seeks to obtain, through consultation with interested groups and individuals in the community, the best possible advice on which to base decisions.
Advisory bodies give advice to the government through a branch secretary or a head of department. They can broadly be divided into two categories- statutory bodies (such as the Antiquities Advisory Board) and non-statutory bodies (such as the Construction Advisory Board). Their areas of activities are wide-ranging. Some deal with the interests of a particular industry, such as the Fish Marketing Advisory Board. Others advise on a particular area of government policy or public interest, such as the Transport Advisory Committee. Some of these bodies also carry out
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executive functions, such as the Hospital Authority. There are also local committees concerned with the affairs of particular areas and neighbourhoods, such as District Fight Crime Committees.
Government officials and members of the public are represented on these advisory boards and committees. About 3 100 members of the public have been appointed to serve on a total of about 290 advisory boards and committees, and some serve on more than one. These members are appointed for their specialist knowledge or expertise, or for their record or interest in contributing to community service. Government constantly keeps in view the composition and operation of the advisory bodies to ensure that they meet the needs of the community. Where appropriate, suitable measures are introduced to enhance their transparency and repre-
sentativeness.
The Administration
Role of the Chief Secretary
The Chief Secretary is principally responsible to the Governor for the formulation of government policies and their implementation. As the head of the Public Service, the Chief Secretary is one of the Governor's principal advisers, along with the Financial Secretary and the Attorney General.
The Chief Secretary exercises direction primarily as head of the Government Secretariat, the central organisation comprising the secretaries of the policy branches and resource branches and their staff. She deputises for the Governor during his absence, and is the Senior Official Member of the Executive Council.
Role of the Financial Secretary
The Financial Secretary, who reports directly to the Governor, is responsible for the fiscal and economic policies of the government. He is an ex officio member of the Executive Council and regularly attends meetings of the Legislative Council as senior government representative.
As the government official with primary responsibility for Hong Kong's fiscal, monetary and economic policies, the Financial Secretary oversees the operations of the Finance, Financial Services, Trade and Industry, Economic Services, and Works Branches of the Government Secretariat, and the Hong Kong Monetary Authority. He also chairs the Exchange Fund Advisory Committee.
The Financial Secretary is responsible under the Public Finance Ordinance for laying before the legislature each year the government's estimates of revenue and expenditure. He delivers the annual budget speech, outlining the government's budgetary proposals and moving the adoption of the Appropriation Bill, which gives legal effect to the annual expenditure proposals contained in the budget.
Role of the Central Policy Unit
The Central Policy Unit provides a confidential source of advice to meet the special requirements of the Governor, the Chief Secretary and the Financial Secretary and reports directly to them. It seeks to combine the organisational strengths and expertise of the Civil Service with the best features of private sector practice.
The unit consults widely with business and professional circles, political organisations and pressure groups and the academic communi. undertakes in-
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depth examinations of complex policy issues, analyses options and recommends practical solutions.
Much of its work is related to the annual Policy Address and Budget exercises. Other issues, which often cut across or fall between the boundaries of several policy branches or government departments, are assigned on a case-by-case basis. In 1996, it produced more than 380 reports and papers on a wide range of economic, social, administrative, political and other issues.
Role of the Efficiency Unit
The Efficiency Unit reports directly to the Chief Secretary and aims to pursue the government's commitment to improve services to the community and to enhance openness and accountability by formulating, securing support for and overseeing the implementation of a Serving the Community programme.
The unit has integrated various public sector reform initiatives into a new management framework. This approach, which builds on traditional strengths, gives a clear direction to management tasks across the government and provides the momentum for continuous improvement. The objective is to devolve more authority to those who carry responsibility for policy formulation and service delivery; and to place greater emphasis on serving customers and raising service standards.
The Structure of the Administration
The Hong Kong Government is organised into branches and departments. The branches, each headed by a policy secretary, collectively form the Government Secretariat. There are 15 policy branches, and two resource branches concerned with finance and the Public Service.
There are 71 departments and agencies whose heads are, with some exceptions, responsible to the branch secretaries for the direction of their departments and the efficient implementation of approved policy. The exceptions are the Audit Department, the independence of which is safeguarded by the Director's reporting directly to the Legislative Council; the Independent Commission Against Corruption and the Office of the Commissioner for Administrative Complaints, whose independence is safeguarded by having the Commissioners report directly to the Governor; the Judiciary, which is the responsibility of the Chief Justice; and the Legal Department, which is the responsibility of the Attorney General.
Office of The Ombudsman
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The Ombudsman - formerly known as the Commissioner for Administrative Complaints (COMAC) is an independent authority, established in 1989 under the COMAC Ordinance. The purpose of the office is to provide citizens with a means through which an independent person outside the Public Service can investigate and report on grievances arising from administrative decisions, acts, recommendations or omissions. The Ombudsman has jurisdiction over practically all government departments, except the Police and the Independent Commission Against Corruption, which have their own separate bodies to deal with complaints from the public.
Legislative amendments were enacted in June 1994 to widen the Ombudsman's powers and jurisdiction. The major changes included allowing members of the public to complain directly to the Ombudsman. The Ombudsman's jurisdiction was
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extended to cover major statutory bodies. He can initiate investigations on his own volition and may publish investigation reports of public interest. Direct investigations conducted by the Ombudsman included unauthorised building works in private buildings and in exempted houses in the New Territories, overcrowding relief in public housing, accommodation for foreign domestic helpers, emergency vehicular access in public and private building developments, bursting of water mains and general outpatient services.
In December 1996, the ordinance was amended to bring about a change in COMAC's English title to 'The Ombudsman', a title widely used internationally. The amendment ordinance also enhances the Ombudsman's operation and empowers him to investigate complaints of non-compliance with the Code on Access to Information against departments/agencies in the government not covered by the ordinance, such as the Police, the Independent Commission Against Corruption and the Secretariats of the Independent Police Complaints Council and the Public Service Commission. The code was introduced in March 1995 and gradually extended to all government departments/agencies by December 1996 with the Ombudsman as the common independent review body for alleged breaches.
The office received 6 129 enquiries and 2 870 complaints in 1996, compared with 4 881 enquiries and 2 607 complaints in 1995.
The areas which attracted substantial numbers of complaints were related to delays; errors or wrong decisions; disparity in treatment or unfairness; ineffective control; abuse of power; rudeness; lack of response to complaints, negligence or omissions; failure to follow procedures and selective enforcement. The organisations receiving most complaints were the Housing Department, Lands Department, Immigration Department, Buildings Department, Urban Services Department, Legal Aid Department, Inland Revenue Department, Transport Department, and Hospital Authority. Most of these organisations have frequent contact with members of the public and are more vulnerable to complaints than the others.
Office of the Director of Audit
The Audit Department is one of the oldest departments in Hong Kong. The first Auditor-General was appointed in 1844.
The Audit Ordinance, enacted in 1971, provides for the appointment, security of tenure, duties and powers of the Director of Audit; for the submission of annual statements by the Director of Accounting Services; for the examination and audit of those statements by the Director of Audit; and for the submission of the latter's report on these to the President of the Legislative Council. The Director of Audit has wide powers regarding access to books, documents and records, and the explanations which may be required. He functions independently of the administration and is free to report publicly.
Aside from auditing the government's accounts, the Director of Audit also audits the accounts of the Urban Council, the Regional Council, the Vocational Training Council, the Hong Kong Housing Authority, the ex-government hospitals under the Hospital Authority, six trading funds and more than 60 statutory and non-statutory funds and other public bodies. The Director also reviews the financial aspects of the operations of the multifarious government-subvented organisations in Hong Kong.
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The Director of Audit carries out two types of audit: regularity audits and value for money audits. Regularity audits are intended to provide an overall assurance of the general accuracy and propriety of the financial and accounting transactions of the government and other audited bodies. The Audit Ordinance gives the Director statutory authority for conducting regularity audits.
Value for money audits are intended to provide independent information, advice and assurance about the economy, efficiency and effectiveness with which any branch of the Government Secretariat, department, agency, other public body, public office or audited organisation has discharged its functions.
Except for some public organisations where the Director of Audit has obtained statutory authority to conduct value for money audits in the respective ordinances, value for money audits are carried out according to guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee in 1986.
After the Director of Audit's report has been submitted to the President of the Legislative Council and laid before the Council, it is considered by the Public Accounts Committee. In 1996, the Director submitted three reports. The first report, tabled in April, covered the results of value for money audits completed. The second and third reports, in November, covered the audit certification of the government's accounts for the preceding financial year and the results of completed value for money audits.
The Director of Audit's reports on the accounts of other public bodies are submitted to the relevant authority in accordance with the legislation governing the operation of these bodies.
Foreign Relations
The Role of the British Government
Because of Hong Kong's status as a dependent territory, the Secretary of State for Foreign and Commonwealth Affairs is constitutionally responsible to the British Parliament for the actions of the Hong Kong Government and he has authority to give directions to the Governor of Hong Kong. However, such formal directions have not been issued in living memory, and Hong Kong conducts its affairs with a high degree of autonomy in all domestic matters.
The relationship between London and Hong Kong is essentially one of co- operation. One important task regularly undertaken by the Foreign and Commonwealth Office is to ensure that Hong Kong's interests and views (which are not always identical to those of the United Kingdom) are properly considered within the British Government machinery, particularly when new policies are being formulated by other Whitehall departments.
Hong Kong's foreign relations are constitutionally the direct responsibility of the British Government. The British Government is internationally responsible for ensuring that the Hong Kong Government fulfils its obligations under the many international conventions and agreements which extend to Hong Kong, as well as to the United Kingdom. But in the day-to-day conduct of external affairs, Hong Kong in practice enjoys a considerable degree of autonomy, and full autonomy regarding international economic and trade matters.
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The Role of the Political Adviser
The Political Adviser is a senior member of the British Diplomatic Service, seconded to the Hong Kong Government principally to advise on relations with China and matters pertaining specifically to Britain's responsibilities in Hong Kong, the requirement for which will cease in 1997. The office is part of the Hong Kong Government.
The Political Adviser's office, in conjunction with the Constitutional Affairs Branch, is closely involved in the work of implementing the Sino-British Joint Declaration on the Question of Hong Kong. The Political Adviser is, ex officio, a member of the UK side of the Joint Liaison Group.
The Political Adviser's office is also a communication channel between the Hong Kong Government and foreign and Commonwealth missions in the territory. However, in most day-to-day matters these missions deal directly with the relevant departments of the Hong Kong Government.
The Public Service
The Public Service employs about six per cent of Hong Kong's workforce. It provides staff for all government departments and other units of the administration. At October 1, 1996, the total strength of the Public Service was 184 000. More than 99 per cent are local officers.
Overall responsibility for the management of the Public Service lies with the Civil Service Branch of the Government Secretariat. The branch deals policies and case work on such matters as appointments, pay and conditions of service, staff management, manpower planning, training and discipline. It is also the focal point for consultation with the principal staff associations. In addition, its General Grades Office manages the 30 000 executive, clerical and secretarial staff.
The principle of open and fair competition is the cornerstone of the government's appointment policy which aims to recruit the 'best person for the job. The appointment process is open, transparent and non-discriminatory. For checks and balances, recruitment and promotion to the middle and senior ranks of the Civil Service are subject to the advice of the Public Service Commission, an independent statutory body comprising a full-time chairman and prominent citizens serving as members.
The government is advised on matters relating to pay and conditions of service by four independent bodies - the Standing Committees on: Directorate Salaries and Conditions of Service (senior officers); Judicial Salaries and Conditions of Service (judicial officers); and Disciplined Services Salaries and Conditions of Service (the disciplined services); plus the Standing Commission on Civil Service Salaries and Conditions of Service (all other civil servants).
There are four main types of terms of appointment in the Civil Service: local permanent and pensionable (P&P) terms, local agreement terms, overseas P&P terms and overseas agreement terms. Local candidates are normally appointed on local P&P terms and receive local conditions of service.
Localisation of the Civil Service is a long-established policy of the government, dating from 1950 when the Public Service Commission came into being. Since then, recruitment of overseas candidates has been considered only when there are no fully
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qualified and suitable local candidates available and the qualification for appointment cannot be modified to enable a local candidate to be appointed. The determination of a candidate's 'overseas' or 'local' status is not based on race or nationality, but on habitual residency, general background and social ties and potential dislocation or up-rooting when appointed.
Historically, the terms of appointment and conditions of service for overseas officers and local officers have been different. Over the years, the government has narrowed the gap and now local and overseas conditions of service are close.
Apart from the distinction between local and overseas conditions of service, officers may be appointed either on permanent and pensionable (P&P) terms or agreement (contract) terms. It is government policy to provide a long-term career for civil servants and thus civil servants are employed on P&P terms whenever possible. P&P officers may thus aspire to serve up to the normal retirement age, except where compulsorily retired, dismissed on disciplinary grounds, invalidated on medical grounds, removed from office for unacceptable performance, retired under the provisions of an abolition of office scheme or a compensation scheme.
For all agreement officers, each renewal of agreement depends on service need, satisfactory conduct and performance, and physical fitness. Agreement terms are used to employ staff only when there are circumstances that justify so, e.g. when P&P terms fail to attract and retain sufficient qualified and suitable candidates. As a result, officers on agreement terms comprise less than 2 per cent of the Civil Service. In furtherance of the localisation policy, the government requires that the renewal of agreements of officers on overseas terms should be subject to, apart from the normal criteria applicable, the lack of a suitable local replacement. Since March 1985 all overseas officers have been appointed on overseas agreement terms only. At October 1, 1996, the Civil Service had a total of 1 450 or 0.8 per cent overseas officers, 557 of whom were on overseas P&P terms and the rest on agreement terms. Local officers constitute about 87 per cent of the 3 000 officers at senior management/professional level, and 72 per cent of the 1 400 officers at the directorate
level.
In the light of the provisions in the Bill of Rights that all permanent residents should have access to the public service on general terms of equality, the government decided that the localisation policy should be modified to reflect this. In July 1994, after extensive discussions with staff associations and the Legislative Council, a modified policy was introduced under which overseas agreement officers who were also permanent residents could apply to transfer to agreement terms modelled on local conditions of service.
In December 1994, the government announced long-term arrangements to deal with the renewal of agreements expiring on or after September 1, 1995. Under these arrangements, an agreement officer at a promotion rank, whether overseas or local, has to succeed in competing with eligible officers one rank below, if any, in order to obtain a further agreement on local or locally modelled conditions.
In 1995, the Association of Expatriate Civil Servants (AECS) applied for judicial review on various measures of the government in implementing the localisation policy in the Civil Service. The High Court judgement handed down on October 31, 1995, upheld the majority of the government's decisions save in four areas. The AECS appealed and the government cross-appealed on a range of matters.
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The Court of Appeal handed down its judgement on November 22, 1996, which overturned some aspects of the High Court judgement and ruled several decisions of the government as unlawful. Having considered legal advice that there is no reasonable chance of success in a further appeal on those major decisions, the limited impact of the judgement on the localisation policy of the Civil Service and the interests of all parties concerned, the government decided not to appeal further to the Privy Council. Instead, it will work closely with the staff side to find workable solutions that will give effect to the judgement in a way that is fair to all and upholds the localisation policy.
As a long-term measure, after wide-ranging consultation, the government has proposed introducing a uniform set of terms of appointment and conditions of service for all staff to remove the differences between local and overseas terms and conditions for new appointments and to converge with the Basic Law. The proposals were passed to the Chinese side of the Sino-British Joint Liaison Group in November 1994 for discussion.
Some of the proposals have already been implemented, including the requirement of Chinese language proficiency for appointment on P&P terms and the cessation of overseas education allowance to new recruits who are offered appointment on or after August 1, 1996. The remaining proposals are the subject of discussion with the Chinese side.
The Personal Data (Privacy) Ordinance will come into force in late 1996. It places a statutory duty on data users to comply with the requirements of six Data Protection Principles, based on internationally-accepted standards, and applies also to the government. It also gives data subjects certain rights, including the right to be informed of whether any data user holds their personal data, to be supplied with a copy of such data and to request correction of any data they consider to be inaccurate. A procedural guide on the processing of employment-related personal data has been issued for the guidance of all data users in the Civil Service. It reminds all data users to bear in mind, when collecting, using, handling, storing and transmitting personal data, that the interests of the individuals who are the data subjects should be a primary concern.
The government values regular communication and consultation with staff. There are four consultative councils at the central level: the Senior Civil Service Council, the Model Scale 1 Staff Consultative Council, the Disciplined Services Consultative Council and the Police Force Council. More than 80 consultative committees operate at the departmental level. A Civil Service Newsletter is published quarterly to provide an added link with serving and retired civil servants.
Staff commitment and contributions are recognised in various forms including appreciation letters, commendations and honours or awards. Long Service Travel Awards, Long and Meritorious Service Awards and retirement souvenirs are given to long-serving staff. Civil servants demonstrated their community spirit and gave strong support to the Dress Casual Day charity event organised by the Community Chest on September 27, 1996. Some 5 000 civil servants also raised $1.7 million in 1996 for the Community Chest under an employee contribution programme.
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Public Sector Reform- Serving the Community
The government recognises the need to engender in the public service a culture that goes beyond the provision of the bare minimum; a culture that recognises the public as the paying customer and treats him or her accordingly.
The Efficiency Unit, reporting directly to the Chief Secretary, serves as the focal point to direct and co-ordinate efforts towards achieving this aim. Key initiatives have included:
A performance pledge programme, whereby all government departments directly serving the public now produce performance pledges, informing their customers what services are available, the standards set and how these standards are monitored. All departments with substantial interface with the public have also set up Advisory Groups or Customer Liaison Groups.
A programme management system, to help branches and departments manage performance better. Under this system each department has developed its own programme structure, setting out the key programmes and activities needed to deliver its aims and objectives. Programmes and activities represent the basic building blocks of the system and are defined in terms that describe the nature of the work in each area.
A Trading Funds Ordinance, to enable selected departments to provide services on a commercial or quasi-commercial basis. The staff of trading funds remain civil servants but the accounting arrangement allows such departments to retain revenue and to operate with more financial autonomy to improve services.
A Helping Business Programme, to improve the overall efficiency and effectiveness of the way the government provides services to the private sector. In particular this programme seeks to eliminate unnecessary bureaucracy and outdated regulatory activities, thus reducing the cost of compliance for the business sector and the cost of enforcement for government departments. It also seeks to introduce new services or improve existing services in response to reasonable demands from the private sector and, where appropriate market conditions prevail, transfer government services to the business sector.
Over time, the Efficiency Unit has gradually integrated these and other initiatives into a new management framework based on the four basic principles of Being Accountable; Living Within Our Means; Managing for Performance and Developing Our Culture of Service. This framework builds on traditional strengths to give a clear direction to management tasks across the government and provide the momentum for continuous improvement.
Key objectives include devolving more authority to those who carry responsibility for policy formulation and service delivery, placing greater emphasis on serving customers and generally seeking to raise standards across the whole spectrum of services provided by the government.
To ensure the delivery of quality service to the public, the government has embarked on a new approach to personnel management. This involves the development of a more dynamic management environment wherein staff will be motivated, developed and managed to maximise their contribution to the Civil Service. As a result of this approach, departments now have greater devolved authority in matters such as staff management and professional training.
CONSTITUTION AND ADMINISTRATION
Civil Service Training and Development
The government attaches great importance to the training and development of public servants in order to increase efficiency and effectiveness, and to help them meet new challenges. Induction and refresher training is provided by many departments to equip staff with the knowledge and skills to carry out their duties effectively. When necessary, staff are also sponsored on local or overseas training courses or attachments.
To achieve effective use of training resources, the Civil Service Training Centre and Senior Staff Course Centre were amalgamated in April 1996 to become the Civil Service Training and Development Institute, which strives to be a centre of excellence for Civil Service training. It conducts a wide range of management, language, China studies and computer courses, and co-ordinates the management training undertaken by civil servants at local and overseas institutes. It also provides training services to support management initiatives launched by the central government and helps departments with their training programmes.
Transition to 1997
Stability and continuity are high on the agenda of the Civil Service in making its transition to Chinese sovereignty. Turnover in the Civil Service has always been low compared with the private sector and the wastage rate of the overall Civil Service in 1995/96 was 4.4 per cent - its lowest in seven years. Continuity at the management level is particularly important. For this purpose the government has a well-organised staff planning system. The Secretary for the Civil Service holds regular meetings with Heads of Departments and their Policy Secretaries to review succession planning of senior staff and to identify and groom officers with potential for senior management, in order to ensure a steady supply of talent to senior positions.
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The Basic Law states that only Chinese citizens among permanent residents of the Hong Kong Special Administrative Region with no right of abode in any foreign country may fill the 23 or so Principal Official posts the most senior posts. The government has localised 22 of the posts by promoting talented civil servants. The government will fulfil its commitment to fill all posts at future Principal Official level before July 1, 1997, by officers who meet the Basic Law's requirements by localising the last such post, Attorney General.
A Civil Service Pension Reserve Fund was established in 1995 to provide an additional assurance to civil servants on the security of pensions. The fund reinforces the strong guarantees in the existing pensions legislation, the Joint Declaration and the Basic Law. The fund, which stood at $7.4 billion in March 1996, will be topped up as and when necessary in order to maintain the balance at a minimum of one year's pension expenditure.
The government runs an extensive China Training Programme which aims to provide public servants with the necessary knowledge, understanding and skills to enable them to work effectively in the future Hong Kong Special Administrative Region Government. The programme is divided into two parts: China Studies and Chinese language training.
The emphasis on China Studies is to cultivate knowledge about the social, economic and administrative systems in China through courses held in China or in Hong Kong, and through visits to institutes in China. The courses and visits also
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serve to promote understanding between Hong Kong civil servants and their counterparts on the mainland. Key components of the studies include :
Tsinghua Course:
Familiarisation Visit:
China Seminars:
Each course consists of four weeks of classroom lectures at the Tsinghua University in Beijing, followed by 10 days of visits to major cities in China. Five courses, each with 26 students, are organised annually.
Four visits are organised per year, each giving 12 officers the opportunity to get a better understanding of China's government system and way of life.
Speakers knowledgeable about China-related issues are invited from within and outside the government to deliver seminars to public servants.
Self-learning Packages: Videos, booklets and computer software on China-related
subjects are developed for use by civil servants.
Chinese language training, which includes Putonghua and writing official communications in Chinese, is being offered to a larger number of officers. Cantonese courses are provided for expatriate officers to enable them to work effectively in the Chinese community.
Government Records Service
The Government Records Service manages government records. It undertakes two different but related programmes. The Records Management Office is responsible for a records management programme to handle current and inactive records; and the Public Records Office for an archives administration programme to look after the preservation and use of records of historical value.
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The appropriate management of records affects the efficiency of business in government. The Records Management Office oversees and develops comprehensive system to manage records effectively and efficiently, from their creation to their final disposal. Since November 1994, a Records Management Strategy has been formulated and implemented by phases to help the civil service improve the quality of records services, control the growth of records, reduce the records stock, and enhance cost-effectiveness in records management. The year 1996 saw the successful conclusion of the first phase of the strategy, and the launching of the second phase, which aims to achieve full-scale implementation of a proper records management system within the civil service by mid-1998. The other initiatives being planned for the new phase include the introduction of centralised microfilming facilities and development of a civil service records back-up and recovery system.
The Public Records Office is one of the largest local sources of information for historical and other studies relating to Hong Kong. The public archives also help to foster the identity of the Hong Kong community through the safe-keeping of permanent records on the territory's history and development.
Construction of the territory's first purpose-built permanent archives began in January 1996 in Kwun Tong, Kowloon, and is expected to be completed in mid-1997. The new building has been designed to the latest international standards required for the permanent preservation of various types of records.
CONSTITUTION AND ADMINISTRATION
To further enhance efficiency in archival management, and in the provision of reference services to the public, plans are in hand to automate the accession listing and search-aid facilities of the Public Records Office. The new systems will be installed in the new archives building when it opens in mid-1997.
Language
The official languages of Hong Kong are English and Chinese. Reports and publications of public interest issued by the government are always produced in both languages. Simultaneous interpretation is provided at meetings of the Legislative Council, Urban Council, Regional Council and other government boards and committees where English and Chinese are used. Correspondence from the public in Chinese is replied to in Chinese.
The government is vigorously promoting wider use of Chinese in the civil service. The government's ultimate objective is to develop a civil service which operates efficiently in Chinese and English and is conversant in spoken Cantonese, English and Putonghua. The establishment of the Official Languages Agency on April 1, 1996, gave impetus to the drive to promote the use of Chinese. The Agency has published guidelines and reference materials on Chinese writing to facilitate preparation of official documents in Chinese. In 1996, $24.3 million was spent on acquiring computers and training civil servants in Chinese word processing.
Good progress continued to be made by the Bilingual Laws Advisory Committee in advising the Governor in Council on the authentication of Chinese texts of laws enacted before April 1989. Since July 1992, the Chinese texts of 268 ordinances have been declared to be authentic. All new principal legislation enacted since April 1989 is in English and Chinese.
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THE legal system in Hong Kong is firmly based on the rule of law and the independence of the judiciary. The Sino-British Joint Declaration on the Question of Hong Kong and the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China provide that the present judicial system will be maintained after 1997, except for those changes consequent upon the establishment of the Court of Final Appeal (CFA) in Hong Kong to replace the Judicial Committee of Her Majesty's Privy Council as Hong Kong's highest appellate court.
In June 1995, the Sino-British Joint Liaison Group reached an agreement on the establishment of the CFA in Hong Kong on July 1, 1997. This agreement ensures that- there will be no judicial vacuum between the end of Hong Kong's right of appeal to the Privy Council and the establishment of the CFA in Hong Kong. To give effect to this agreement, the Hong Kong Court of Final Appeal Ordinance was enacted, with the advice and consent of the Hong Kong Legislative Council, in August 1995. Work has begun on renovating the former French Mission Building in Central as the new CFA building and on the drafting of rules of procedure for the CFA.
The British Government has given an assurance that the Privy Council will retain its jurisdiction over cases from Hong Kong courts up to June 30, 1997, and that it will give priority to Hong Kong appeals in the months immediately before July 1997. Any unfinished appeals will be transferred from the Privy Council to the CFA. Discussions with the Privy Council regarding ways of ensuring the orderly transfer of any unfinished business to the CFA on July 1, 1997, are in progress.
The past year saw major developments in the area of human rights protection and legal aid services. Among these were the implementation of legislation against discrimination as well as the establishment of the Equal Opportunities Commission and the Legal Aid Services Council.
Law in Hong Kong
The Governor, acting by and with the advice and consent of the Legislative Council, has the power to make laws for the peace, order and good government of Hong Kong. Most legislation applicable in the territory is enacted in the form of ordinances or as subsidiary legislation made under an ordinance. These ordinances, together with the common law and rules of equity, are the main sources of law in Hong Kong.
The Attorney General's Chambers are responsible for drafting new legislation in both Chinese and English, and for translating legislation enacted in English only into Chinese. Both the Chinese and English texts are authentic texts of the laws. The first bilingual ordinance was enacted on April 13, 1989. Since then, all new principal
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legislation and legislation amending bilingual legislation have been enacted bilingually.
In October 1988, the government set up the Bilingual Laws Advisory Committee, to advise on the quality and authentication of Chinese texts of ordinances enacted only in English. The committee examines Chinese texts prepared by the Law Drafting Division of the Attorney General's Chambers, and then recommends that the Governor-in-Council declare these approved texts as authentic texts of the laws. The first Chinese text of existing legislation enacted only in English was declared authentic in July 1992. Since then, the Chinese texts of about 326 ordinances have been declared authentic. The authentication of Chinese texts of ordinances is progressing well. At each Executive Council sitting, the Chinese texts of at least two ordinances are declared authentic.
In the Law Drafting Division, a bilingual legal glossary is being kept in a database. This glossary has reached about 22 800 entries and is growing at a rate of about 80 entries per week. An English-Chinese glossary of legal terms, in booklet form, containing legal and relevant terms appearing in legislation which has an authentic Chinese text is published from time to time. The second edition, containing about 15 000 entries, was published in June 1996. The next edition will be published towards the end of 1997 or in 1998.
Until 1989, the laws of Hong Kong were published in a 32-volume compilation known as the Laws of Hong Kong. Since 1990, the Laws of Hong Kong have been published in the loose-leaf edition. The loose-leaf edition will be updated continuously. In addition, all new laws are published in the Hong Kong Government Gazette.
The Application of English Law Ordinance provides that the common law of England and the rules of equity shall be in force in Hong Kong so far as they are applicable to the circumstances of Hong Kong or its inhabitants, subject to such modifications as circumstances may require. The ordinance applies several English Acts, such as the Habeas Corpus Act 1816, to Hong Kong. It will be superseded on July 1, 1997, by the Basic Law, which provides for the adoption of the laws previously in force in Hong Kong as the laws of the Hong Kong Special Administrative Region (HKSAR). Useful provisions in the English Acts applied by the ordinance will be re-enacted in local legislation.
United Kingdom legislation may be applied to Hong Kong either directly or by order of Her Majesty-in-Council. In practice, the exercise of these powers is largely confined to matters which have a bearing on Hong Kong's international position. For example, the Multilateral Investment Guarantee Agency (Overseas Territory) Order 1988 is an Order-in-Council implementing in Hong Kong a treaty to which the UK is a party.
To ensure that by July 1997, Hong Kong will possess a comprehensive body of law which owes its authority to the legislature of Hong Kong, it is necessary to replace such UK legislation which applies to Hong Kong by local legislation on the same topics. The Hong Kong legislature has been empowered under the Hong Kong Act 1985 to repeal or amend any enactment so far as it is part of the law of Hong Kong, and to make laws having extra-territorial operation, if the enactment relates to one of several topics (including civil aviation, merchant shipping, fugitive offenders and intellectual property) or if it is required in order to give effect to an international
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agreement which applies to the territory. Legislation has already been enacted to localise laws in fields including admiralty jurisdiction, marine pollution, merchant shipping, civil aviation, coinage, dumping at sea, protection of trading interests and biological weapons, and work in other areas is in progress.
A Localisation and Adaptation of Laws Unit has been established in the Attorney General's Chambers. Its role is to give legal advice on the localisation of UK legislation which presently applies to Hong Kong. It also advises on the adaptation of the laws of Hong Kong to ensure compatibility with the Basic Law of the HKSAR, which was promulgated in April 1990. In that respect, a review by policy branches of all ordinances within their spheres of responsibilities has been completed with a view to appropriate amendments being made on, or shortly after, July 1, 1997.
Human Rights
Hong Kong abides by several international conventions on human rights. The International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR) have been extended to Hong Kong since 1976. The Sino-British Joint Declaration on the Question of Hong Kong and the Basic Law of the HKSAR of the People's Republic of China both guarantee that the provisions of the two covenants, as applied to Hong Kong, shall remain in force after 1997.
The Bill of Rights Ordinance, which was enacted in 1991, gives effect in local law to the provisions of the ICCPR. At the same time, the Letters Patent for Hong Kong were amended to provide that no laws shall be made which restrict the rights and freedoms enjoyed in Hong Kong in a manner inconsistent with the ICCPR as applied to the territory.
In 1994, the Convention on the Rights of the Child was extended to Hong Kong, placing the territory under international obligations to respect children's rights and protect their interests. The initial report on Hong Kong under the convention was submitted to the UN in early 1996 and examined in October by the UN Committee on the Rights of the Child.
A proposal seeking to extend to Hong Kong the Convention on the Elimination of All Forms of Discrimination Against Women was agreed at the Joint Liason Group and the extension took effect on October 14, 1996.
On the domestic front, the Sex Discrimination Ordinance, enacted in July 1995, renders unlawful discrimination on the grounds of sex, marital status, pregnancy and sexual harassment. It also provides for the establishment of an Equal Opportunities Commission tasked with the responsibility of eliminating discrimination and promoting equal opportunities between the sexes. The Equal Opportunities Commission was formally established in May 1996 and began operation in September. It also oversees the implementation of the Disability Discrimination Ordinance enacted in August 1995.
The Personal Data (Privacy) Ordinance, enacted in August 1995 to protect the individual's right to privacy with respect to personal data, gives statutory effect to internationally recognised data protection principles and provides for the establishment of an independent regulatory authority, the Privacy Commissioner for Personal Data, to promote and enforce compliance with the legislation. The
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Commissioner assumed office in August 1996 and the ordinance commenced operation in December.
Arbitration and Alternative Dispute Resolution
Arbitration has been a popular method of dispute resolution in Hong Kong for some time. It is governed by the Arbitration Ordinance, which has two distinct regimes- a domestic regime based on English law and an international regime which includes the UNCITRAL Model Law, the model law adopted by the United Nations Commission on International Trade Law. The Attorney General has proposed certain amendments to the Arbitration Ordinance which aim to minimise the differences in conducting arbitration proceedings under the two regimes. Awards made in Hong Kong can be enforced in more than 120 jurisdictions which are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
The Hong Kong International Arbitration Centre (HKIAC) was established in 1985 to act as an independent and impartial focus for the development of all forms of dispute resolution in Hong Kong and Southeast Asia. The HKIAC provides information on dispute resolution and arbitrations both in Hong Kong and overseas. It operates panels of international and local arbitrators, and maintains lists of mediators. HKIAC's premises are in Exchange Square in Central District where it provides 10 purpose-built hearing and conference rooms and full support facilities. The number of cases involving the HKIAC has substantially increased in recent years. It is anticipated that there will be a further increase in such cases in the future, not only because of the increased popularity of arbitration and mediation as a means of dispute resolution but also because of the growth of Hong Kong as a regional dispute resolution centre.
The Attorney General
The Attorney General is the Governor's legal adviser and an ex officio member of the Executive Council. He is chairman of the Law Reform Commission of Hong Kong, as well as a member of the Judicial Service Commission and the Operations Review Committee of the Independent Commission Against Corruption.
All government departments requiring legal advice receive it from the Attorney General. He is the representative of the Crown in all actions brought by, or against, the Crown. He is also responsible for the drafting of all legislation.
The Attorney General is responsible for all prosecutions in Hong Kong. It is his responsibility to decide whether a prosecution should be instituted in any particular case, and, if so, to institute and conduct the prosecution.
The Attorney General is chairman of the Legal Affairs Policy Group, one of several policy bodies established under the umbrella of the Chief Secretary's Committee, to bring together branch secretaries in related programme areas. The group plays an important co-ordinating role in legal policy matters, decision-making and allocation of responsibility for legislative initiatives which have a substantial legal policy content. Often, the group will call upon the Attorney General to take responsibility, as sponsor and spokesman, for legislative proposals to be submitted to the Executive and Legislative Councils.
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The Attorney General's Chambers comprise the Attorney General's Office and six divisions, five of which are headed by a Law Officer to whom the Attorney General delegates certain of his powers and responsibilities. The remaining division, headed by the Chambers Manager, deals with administrative matters. The Attorney General's Office provides legal and administrative support to the Attorney General in respect of his many functions which include being the principal legal adviser to the Governor and to the government as a whole, serving as a member of the Executive Council, promoting legislation relating to the administration of justice and legal services, and answering questions raised by members of the Legislative Council.
The Civil Division, headed by the Crown Solicitor, provides legal advice to the government on civil law and conducts civil litigation, arbitration and mediation, on behalf of the government.
The International Law Division, headed by the Law Officer (International Law), deals with all external legal matters arising out of the Sino-British Joint Declaration and other international agreements, and advises upon questions of international law. The Law Drafting Division, headed by the Law Draftsman, is responsible for drafting and translating all legislation, including subsidiary legislation, in Chinese and English, and assists in steering legislation through the Executive and Legislative Councils.
The Solicitor General heads the Legal Policy Division, which includes the Law Reform Commission Secretariat. The division services the professional needs of the Attorney General, and provides legal input on a wide variety of topics being considered by the government. The division also advises on issues affecting the administration of justice, human rights, constitutional law, China law and Basic Law. The Prosecutions Division is headed by the Crown Prosecutor, who is commonly known as the Director of Public Prosecutions. Counsel from this division conduct prosecutions in the majority of High Court and District Court trials, and often appear before magistrates when an important point of law is involved. The division also provides legal advice to the police and other government departments responsible for prosecuting offences.
Law Reform Commission
The Law Reform Commission was appointed by the Governor in Council to consider and report on such topics as may be referred to it by the Attorney General or Chief Justice. Its membership includes academic and practising lawyers, and prominent members of the community.
Since its establishment in 1980, the commission has published 30 reports covering subjects as diverse as commercial arbitration, homosexuality, bail, sale of goods and supply of services, bankruptcy, fraud, and illegitimacy. The recommendations in 18 of its reports have been implemented, either in whole or in part. It is currently considering references on hearsay evidence in civil actions, privacy, guardianship and custody, insolvency, description of flats on sale, and interpretation of statutes.
Director of Intellectual Property
The post of Director of Intellectual Property was established in 1990 as a statutory office by the Director of Intellectual Property (Establishment) Ordinance. The Intellectual Property Department includes the Trade Marks and Patents Registries,
THE LEGAL SYSTEM
which administer trade marks and patents registration systems under the Trade Marks Ordinance and the Registration of Patents Ordinance. The department is also responsible for tendering advice on the policy and legislation for other forms of intellectual property protection such as copyright and layout-design (topography) of integrated circuits, and for further development of Hong Kong's intellectual property regime.
The Legal Profession
Hong Kong has 3 876 solicitors and 514 local law firms, plus 56 registered foreign law firms, 383 registered foreign lawyers and 10 registered associations between foreign law firms and local law firms in Hong Kong which advise on foreign law.
The Law Society is the governing body for solicitors and foreign lawyers and foreign law firms in Hong Kong. It has wide responsibilities for maintaining professional and ethical standards, and for considering complaints against these legal professionals.
The territory has 626 practising barristers, whose governing body is the Bar Association. Their conduct and etiquette are governed by the Code of Conduct for the Bar of Hong Kong.
The Judiciary
A key element in the past success and continuing attraction of Hong Kong is that its judicial system operates on the principle, fundamental to the common law system, of the independence of the judiciary from the executive and legislative branches of government. The courts make their own judgements, whether disputes before them involve private citizens, corporate bodies or the government itself. The independence of the Judiciary will be maintained after 1997, as provided for by the Sino-British Joint Declaration on the Question of Hong Kong and the Basic Law.
The Chief Justice of Hong Kong is head of the judiciary. He is assisted in the overall administration of the judiciary by a Judiciary Administrator and her supporting team.
The most senior court in the territory is the Supreme Court, which covers both the Court of Appeal and the High Court. Sitting in the Supreme Court, in addition to the Chief Justice himself, are nine Justices of Appeal and 25 High Court Judges. The court's Registrar and Deputy Registrars serve as Masters of the Supreme Court in civil trials in the High Court. The Court of Appeal hears civil and criminal appeals from the High Court and the District Court. Until June 30, 1997, further recourse for appeal will be with the Judicial Committee of the Privy Council in London. With the change of sovereignty, in July 1997, the Court of Final Appeal which will be established on July 1, 1997, will assume the role of the highest appellate court in Hong Kong.
The High Court's jurisdiction is unlimited in both civil and criminal matters. Civil matters are usually tried by High Court Judges sitting without juries, although there is a rarely used provision for jury trials in certain cases, including defamation. For criminal trials, they sit with a jury of seven, or sometimes nine on special direction of the Judge.
The District Court is one level below the High Court. There is a Chief District Judge and 32 Judges, who sit without a jury. The District Court's civil jurisdiction is 31
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limited to disputes with a monetary value of up to $120,000. The District Court tries more serious criminal cases but not murder, manslaughter and rape. The maximum term of imprisonment is seven years. It has appellate jurisdiction in stamp duty appeals and in its family jurisdiction decides divorce, adoption and custody matters. The Magistrates' Courts have the highest volume of cases of all the courts, trying some 90 per cent of the cases heard annually in Hong Kong. Including one Chief and 10 Principal Magistrates, there are 62 professional magistrates sitting in 10 magistracies spread around the territory. The magistrates exercise criminal jurisdiction over a wide range of offences. Although there is a general limit of two years' imprisonment or a fine of $100,000, many ordinances empower magistrates to impose sentences of up to three years' imprisonment and heavier fines, in some cases up to $5 million. They also try cases in the Juvenile Court, which has jurisdiction in charges against children and young persons up to 16 years, except in cases of homicide. In addition to the professional magistrates, there are 11 Special Magistrates, who are not legally qualified. They handle routine cases such as littering and minor traffic offences. Their powers of sentencing are limited to fines of up to $50,000.
In addition to these principal courts of civil and criminal jurisdiction, there are five tribunals. The Lands Tribunal has a special jurisdiction in rating and valuation and assesses compensation when land is resumed by the government or reduced in value by development. The Labour Tribunal hears civil claims arising from contracts of employment. The Small Claims Tribunal hears minor civil claims, up to a limit of $15,000 at present. The Obscene Articles Tribunal determines whether or not an article is obscene, and to classify it into statutory categories of acceptability or otherwise. The Coroner's Court handles inquiries into unusual circumstances causing death.
Steady progress has been made in implementing the plan drawn up by the Steering Committee appointed by the Chief Justice to further the use of Chinese in the higher courts. At present, cases in the District Court, magistracies and tribunals can be tried in either English or Chinese. Also, since December 1, 1996, The High Court may use Chinese or English in hearing appeals from the Magistrates' Courts, the Labour Tribunal and the Small Claims Tribunal. Restrictions on using Chinese in the High Court and Court of Appeal will be removed by stages in the first half of 1997. Meanwhile, the judiciary is identifying suitable cases to be tried in Chinese in the High Court in advance of the programme. A bilingual court system will be in operation before July 1997.
Legal Aid, Advice and Assistance
Hong Kong has developed, over the years, a comprehensive system of legal aid to ensure that any person who has reasonable grounds for pursuing or defending a legal action is not prevented from doing so by lack of means. The provision of legal aid services is funded by the Hong Kong Government through the Legal Aid Department and the Duty Lawyer Service.
Legal Aid
The Legal Aid Department provides legal representation in civil and criminal cases which are heard in the Magistrates' Courts, where the prosecution is seeking committal of a defendant to the High Court, in the District Court, the High Court,
THE LEGAL SYSTEM
the Court of Appeal in Hong Kong and also the Judicial Committee of the Privy Council in London. Such aid is available to any person in Hong Kong, resident or non-resident, who is able to satisfy the Director of Legal Aid as to financial eligibility (the means test) and the justification for legal action (the merits test). Legal assistance is provided either with or without payment of a contribution. Upon grant of legal aid, the cases are assigned either to a lawyer in private practice or in the department's Litigation Division.
Legal Aid in Civil Cases
In civil cases, apart from financial eligibility, an applicant must satisfy the Director of Legal Aid that he has reasonable grounds for pursuing or defending a legal action. Legal aid is available for a wide range of civil proceedings, including matrimonial cases, traffic accident claims, landlord and tenant disputes, claims in respect of industrial accidents, employees' compensation, immigration matters, breach of contract and professional negligence.
Admiralty, bankruptcy and companies winding-up proceedings are also undertaken by the Legal Aid Department. Most of these cases deal with employees' wages and severance pay.
An applicant who is refused legal aid may appeal to the Registrar of the Supreme Court; or in Privy Council cases, to a committee of review. The department's total expenditure for 1996 was $240 million in civil cases. During the year, 25 300 applications were received, and 9 200 were granted legal aid. Altogether, $620 million was recovered for the aided persons.
Supplementary Legal Aid Scheme
The Director of Legal Aid also operates the Supplementary Legal Aid Scheme, which provides legal assistance to persons whose resources exceed the financial limits under the standard legal aid scheme but are not sufficient to meet the high costs of conducting litigation on a private basis. The scheme is self-financing, funded by contributions from damages or compensation recovered. The scheme is available for civil claims in the High Court, the Court of Appeal and certain claims in the District Court for employees' compensation and for damages for death or personal injuries. Total expenditure on the scheme in 1996 was $4 million, 170 applications were received, and 100 were granted legal aid.
Legal Aid in Criminal Cases
In criminal cases, legal aid is available for representation in proceedings in the High Court and District Court, in the Magistrates' Courts (where the prosecution is seeking the committal of a defendant to the High Court), in appeals from the Magistrates' Courts, and in appeals to the Court of Appeal and to the Privy Council. For appeals against conviction for murder, subject to financial eligibility, the grant of legal aid is mandatory to ensure that all relevant matters are placed before the court by the appellant's legal representative. For all other criminal appeals, legal aid will be given, subject to financial eligibility, if the Director of Legal Aid is satisfied that there are arguable grounds of appeal.
If satisfied that it is in the interests of justice to do so, the director has discretion to grant legal aid to an applicant who is charged with a criminal offence even if he fails
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the means test. Most people charged with criminal offences have therefore been granted legal aid.
Total expenditure on legal costs on criminal cases for 1996 was $100 million. During the year, 4 600 applications were received, 2 900 applicants were granted legal aid.
Legal Aid Services Council
The Legal Aid Services Council was established on September 1, 1996. The council has been charged with overseeing the administration of the services provided by the Legal Aid Department and to advise the Governor on legal aid policy. The council consists of a chairman and four persons who are not connected in any way with the practice of law; two barristers and two solicitors; and the Director of Legal Aid. It is required to submit a report each year to the Governor. A copy of the annual report should also be laid before the Legislative Council.
The Official Solicitor
The Director of Legal Aid was appointed the first Official Solicitor after the Official Solicitor Ordinance Cap. 416 came into force in August 1991.
A separate office was established to provide legal representation to persons under legal disability, estate or trust in court proceedings in Hong Kong. Up until July 1996, the Official Solicitor had received 376 requests for representation in matters involving receivership, unclaimed estates, proceedings for or against mental patients, adoption, guardianship and application for care and protection order under the Protection of Children and Juveniles Ordinance. The Official Solicitor assigned less than 5 per cent of the cases to private lawyers and litigated the balance himself.
Duty Lawyer Service
The Duty Lawyer Service was established in November 1978. It was then known as the Law Society Legal Advice and Duty Lawyer Schemes. In August 1993, it was incorporated into a company limited by guarantee and renamed.
The Duty Lawyer Service is subvented by the Hong Kong Government but independently administered by the legal profession of Hong Kong. The Hong Kong Bar Association and the Law Society of Hong Kong each nominate four members to sit on the council of the service, which manages and administers its operations. A lay member has also been invited to sit on the council.
The service operates three schemes: the Duty Lawyer Scheme, the free Legal Advice Scheme and the Tel-law Scheme.
The Duty Lawyer Scheme provides legal representation to defendants who are charged and brought before a magistrate. When it commenced its service in January 1979, it covered only six offences and was available in three magistracies. It was extended gradually. In 1983 it was extended to all the magistracies in Hong Kong and covered nine offences. After the introduction of the Bill of Rights Ordinance in 1991, the scheme was extended to cover almost all of the criminal offences in magistracies. To be eligible for legal assistance, a defendant has to pass the means and merits tests. Each eligible defendant has to pay a handling charge of $300. In 1996, the financial eligibility limit was increased from $90,000 to $108,000 gross annual income. The Administrator of the service may exempt a defendant from payment of the
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handling charge. In 1996, 39 202 defendants were assisted under the scheme, which also assigns lawyers to represent defendants facing extradition, to represent suspects attending one-way viewer identification parades and to represent hawkers at the hearings of their appeals to the Governor in Council. There were 924 barristers and solicitors on the Duty Lawyer Panel.
The free Legal Advice Scheme was set up in 1978 to provide members of the public free legal advice at legal advice centres located in the District Offices. A new centre was opened in January 1996 in the Central and Western District Office, increasing the number of advice centres to six. Any member of the public can make an appointment to meet volunteer lawyers for legal advice through one of the 120 referral agencies which include all the District Offices, Caritas Service Centres and the Social Welfare Department. In 1996, there were more than 580 volunteer lawyers participating in this scheme and 5 117 people were given advice.
The Tel-law Scheme was introduced in 1984 to provide members of the public with taped legal information by telephone. In 1995, the Tel-law system was fully computerised and upgraded into a 24-hour automatic answering service. The tapes are in Chinese and English and cover aspects of the law including matrimonial, landlord and tenant, criminal, commercial, employment, environmental and administrative law. They are constantly updated and new tapes are added when a new subject is identified as being of interest to the public. In 1996, there were 69 topics available and 19 168 calls were received.
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THE Sino-British Joint Declaration on the question of Hong Kong was signed in Beijing on December 19, 1984, by the Prime Ministers of Britain and China. On May 27, 1985, instruments of ratification were exchanged and the agreement entered into force. It was registered at the United Nations by the British and Chinese Governments on June 12, 1985.
The Documents
The Joint Declaration is a legally binding international agreement. Indeed it is the highest form of commitment between sovereign states. It consists of several documents:
(a) the Joint Declaration itself;
(b) Annex I, in which the Chinese Government establishes its basic policies
towards Hong Kong;
(c) Annex II, which sets out the terms of reference and the working arrangements for the Sino-British Joint Liaison Group (JLG) which will operate until January 1, 2000;
(d) Annex III, which provides for the protection of land rights and for future land leases. It also establishes the Land Commission, which will operate until June 30, 1997; and
(e) an exchange of memoranda associated with the Joint Declaration on the status
of British Dependent Territories Citizens.
The Joint Declaration
In the Joint Declaration, the Government of the People's Republic of China declares that it has decided to resume the exercise of sovereignty over Hong Kong with effect from July 1, 1997, and the Government of the United Kingdom declares that it will restore Hong Kong to the People's Republic of China with effect from July 1, 1997. The Government of the People's Republic of China declares that the basic policies of the PRC towards Hong Kong are that:
(a) Hong Kong shall be a Special Administrative Region (SAR) of the People's
Republic of China;
(b) the Hong Kong SAR (HKSAR) will be directly under the authority of the Central People's Government and will enjoy a high degree of autonomy except in foreign and defence affairs;
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(c) the HKSAR will be vested with executive, legislative and independent judicial
power including that of final adjudication;
(d) the Government of the HKSAR will be composed of local inhabitants;
(e) the current social and economic system in Hong Kong will remain unchanged,
and so will the life-style. Rights and freedoms will be protected by law;
(ƒ) the HKSAR will retain the status of a free port and a separate customs
territory;
(g) the HKSAR will retain the status of an international financial centre;
(h) the HKSAR will have independent finances;
(i) the HKSAR may establish mutually beneficial economic relations with the
United Kingdom and other countries;
(j) using the name 'Hong Kong, China', the HKSAR may on its own develop
economic and cultural relations;
(k) the maintenance of public order in the HKSAR will be the responsibility of the
HKSAR itself, and
(1) these policies will remain unchanged for 50 years.
The Joint Declaration also provides that, until June 30, 1997, the Government of the United Kingdom will be responsible for the administration of Hong Kong with the object of maintaining and preserving its economic prosperity and social stability; and the Government of the People's Republic of China will give its co-operation in this connection. It also provides that the Governments of the United Kingdom and the People's Republic of China agree to implement the declaration and its annexes.
The Sino-British Joint Liaison Group
The Joint Declaration foresaw that, in the years between its signing and the establishment of the SAR, much would need to be done to prepare Hong Kong for its new status. To this end it provided for the establishment of the Joint Liaison Group (JLG) and a Sino-British Land Commission.
Annex II of the Joint Declaration sets out the functions of the JLG as:
(a) to conduct consultations on the implementation of the Joint Declaration; (b) to discuss matters relating to the smooth transfer of government in 1997; and (c) to exchange information and conduct consultations on such subjects as may be
agreed by the two sides.
The JLG is an organ of liaison, not power. It must meet in Hong Kong, London and Beijing, at least once a year at each venue. The JLG has held 38 plenary meetings since 1985: 15 in Hong Kong, 12 in London and 11 in Beijing. It has also established expert groups which have met many times.
Agreements Reached So Far
The Joint Declaration set out that, in the first half of the period between the establishment of the JLG and July 1, 1997, the JLG should consider:
(a) action to be taken by the two governments to enable the HKSAR to maintain its economic relations as a separate customs territory, and in particular to
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ensure the maintenance of Hong Kong's participation in the General Agreement of Tariffs and Trade (GATT), the Multifibre Arrangement and other international arrangements; and
(b) action to be taken by the two governments to ensure the continued application
of international rights and obligations affecting Hong Kong.
Almost all of this work has been completed. In 1986, the JLG agreed that Hong Kong should be deemed to be a separate contracting party to the GATT (now known as World Trade Organisation - WTO) and also that Hong Kong should become a separate Member of the Customs Co-operation Council (now known as the World Customs Organisation - WCO).
The JLG has also agreed that Hong Kong should continue to participate in other international organisations after July 1, 1997. They are the: Asian Development Bank (agreement reached in 1985); Universal Postal Union (1986); World Meteorological Organisation (1986); International Maritime Organisation (1986); International Telecommunication Union (1986); Asian-Pacific Postal Union (1986); the UN Food and Agriculture Organisation and its subsidiary bodies in the Asia-Pacific Region (1987); United Nations Economic and Social Commission for Asian and the Pacific, and its subordinate bodies including the Asia and Pacific Development Centre, Intergovernmental Typhoon Committee and Statistical Institute for Asia and the Pacific (1987); International Labour Organisation (1987); United Nations Conference on Trade and Development (1987); World Health Organisation (1988); Interpol (1988); Asia-Pacific Telecommunity (1988); International Atomic Energy Agency (1988); United Nations Commission on Narcotic Drugs (1988); International Hydrographic Organisation (1988); Network of Aquaculture Centres in Asia and the Pacific (1988); International Monetary Fund (1989); International Bank for Reconstruction and Development (1989); International Finance Corporation (1989); International Development Association (1989); International Telecommunications Satellite Organisation (1990); International Maritime Satellite Organisation (now known as International Mobile Satellite Organisation) (1990); World Intellectual Property Organisation (1994); International Textiles and Clothing Bureau (1996); and the International Civil Aviation Organisation (1996).
Significant progress has also been made concerning international rights and obligations. The JLG established an International Rights and Obligations Sub-Group in 1986. Agreement has been reached on the continued application of some 200 international conventions to Hong Kong after June 30, 1997. Agreement in principle has also been reached on the framework of the mechanism to notify the international community of the continued application of these conventions to Hong Kong after June 30, 1997.
The JLG has also agreed to a network of bilateral agreements between Hong Kong and various conutries. These will continue in force after June 30, 1997.
(a) Investment Promotion and Protection Agreements with: The Netherlands (agreed to in the JLG, March 1992, signed November 1992), Sweden (June 1993, May 1994), Denmark (September 1993, February 1994), Switzerland (September 1993, September 1994), Australia (June 1993, September 1993), New Zealand (April 1995, July 1995), Germany (December 1993, January 1996), Italy (June 1994, November 1995), France (September 1994, November
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1995), Canada (agreed to in June 1992), Belgium (July 1995, October 1996) and Austria (February 1996, October 1996).
(b) Surrender of Fugitive Offenders Agreements with: The Netherlands (agreed to in the JLG, August 1992, signed November 1992), Canada (May 1993, September 1993), Australia (September 1993, November 1993), Malaysia (June 1994, January 1995), The Philippines (September 1994, January 1995), the USA (September 1996, December 1996), India (December 1994) and Indonesia (October 1996).
(c) Air Services Agreements with: The Netherlands (agreed to in the JLG July 1986, signed September 1986), Switzerland (November 1987, January 1988), Canada (March 1988, June 1988), Brunei (November 1988, January 1989), France (December 1988, August 1990), New Zealand (December 1990, February 1991), Malaysia (December 1990, March 1991), Brazil (June 1991, September 1991), Sri Lanka (September 1992, February 1993), Australia (June 1993, September 1993), Germany, (December 1994, May 1995), India (September 1993), Singapore (February 1996, April 1996), South Korea (February 1996, March 1996), Italy (June 1996), Mynamar (September 1996), Thailand (September 1996) and Japan (November 1996). Agreement was also reached in September and December 1996 on a model text which will be used as the basis for the negotiation of overflight agreements and 22 negotiating partners, respectively.
(d) Mutual Legal Assistance in Criminal Matters Agreement with: Australia (agreed to in the JLG February 1996, signed September 1996). Nineteen negotiating partners agreed.
(e) Transfer of Sentenced Persons: Model agreement agreed in the JLG in
February 1996. Six negotiating partners agreed.
Early in the JLG's existence agreement was reached that some travel and identity documents issued to Hong Kong residents before July 1, 1997, would continue to be valid thereafter, including:
(a) Certificate of Identity and Permanent Identity Card (1985);
(b) Document of Identity (1987);
(c) Hong Kong Seaman's Certificate of Nationality and Identity (1988);
(d) Seaman's Identity Books (1992); and
(e) Re-entry Permits (1992).
The Joint Declaration provides that in the second half of the period between the establishment of the JLG and July 1, 1997, matters for consideration shall include:
(a) procedures to be adopted for the smooth transition in 1997; and
(b) action to assist the HKSAR to maintain and develop economic and cultural relations and conclude agreements on these matters with states, regions and relevant international organisations.
Much has already been done to achieve a smooth transition. As early as 1986, the two sides agreed to the introduction of a new pension scheme for the civil service. In 1987 agreement was reached on the expansion of the Police Force. In 1990, an
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40
agreement was reached in respect of the Hong Kong Government's archives on measures needed as a result of the establishment of the SAR.
In 1994, there was a comprehensive agreement on the future use of the defence estate in Hong Kong, and agreement was reached on the site for the future Chinese Ministry of Foreign Affairs Office in Hong Kong. Also in 1994, agreement was reached on transitional arrangements for postage stamps, and the future arrangements for international call sign services for Hong Kong. In January 1996, agreement was reached on the preparations for the issue of HKSAR passports. In September 1996, agreement in principle was reached on the issue of travel documents other than the HKSAR passports after July 1, 1997. In the same month, an Agreed Minute on the principles for the Handover Ceremony that will be held around midnight of June 30, 1997, was signed. In November 1996, an Agreed Minute on the transfer of the Exchange Fund was signed.
One of the JLG's most important achievements has been to ensure the continuity of the independent judiciary in Hong Kong. Both the Joint Declaration and the Basic Law provide that the judicial system previously practised in Hong Kong shall be maintained except for those changes consequent upon the establishment of the Court of Final Appeal of the HKSAR. In June 1995, agreement was reached in the JLG on the establishment of the Court of Final Appeal on July 1, 1997, in accordance with the provisions of the Court of Final Appeal Ordinance passed by the Hong Kong Legislative Council in the 1994-95 session. This agreement ensures that the Court of Final Appeal will be established in accordance with the established principles and practices of the Privy Council and that there with be no judicial vacuum in 1997.
Agreements have also been reached to ensure that the UK Laws currently in force in Hong Kong, apart from those which can be allowed to lapse, will continue to apply after June 30, 1997. The JLG has reached agreement on the localisation of about 130 UK enactments in the following areas of law: Merchant Shipping (Registration) (1986); Admiralty Jurisdiction (Civil) (1988); Merchant Shipping (Prevention and Control of Pollution) (1989); Merchant Shipping (Liability and Compensation of Oil Pollution) (1989); Admiralty Jurisdiction (Criminal) (1990); Merchant Shipping (Limitation of Shipowners' Liability (1991); Civil Aviation (First Stage) (1993); Internationally Protected Persons and Taking of Hostages (1994); Merchant Shipping (Seafarers) (1994); Merchant Shipping (Carriage of Goods by Sea) (1994); Dumping at Sea (1994); Merchant Shipping (Liner Conferences) (1994); Nuclear Material (Liability of Carriage) (1944); Coinage (1994); Biological Weapons (1995); Aviation Security (1995); Patents (1995); Registered Designs (1995); Copyright (1995); Whale Fisheries (1995); Submarine Telegraph (1996); Surrender of Fugitive Offenders (1996), Carriage by Air (1996) and Official Secrets (1996).
The JLG has reached a common view on some major contracts that straddle 1997. These are: the Scheme of Control Agreement of China Light and Power (1992), and the provision of Community Electronic Trading Services (1992); the Subscription TV Licence (1993); the Scheme of Control Agreement of Hong Kong Electric (1993); the contract for the West New Territories landfill (1993); the contract for the South-East NT landfill (1993); the contract for the North-East NT landfill (1994); the management contract
contract for the Aberdeen Tunnel (1994); four Fixed Tele- communication Network licences (1995); the Route III (Country Park Section) BOT franchise (1995); the new franchise for China Motor Bus Company (1995); the management contracts for the Lion Rock and Airport, and Shing Mun and Tseung
British and Chinese representatives on the Joint Liaison Group,
Mr Hugh Davies (left) and Mr Zhao Jihua, start discussions with a handshake at the JLG's 38th plenary session and the last for the year, held in Hong Kong from December 4 to 6. Issues discussed included the transitional Budget, the Handover Ceremony, and matters relating to Hong Kong's international rights and obligations.
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HD
The Commander British Forces Hong Kong, Major-General Bryan Dutton, escorts the Commander of the future garrison of the People's Liberation Army in Hong Kong, Major-General Liu Zhenwu, as he inspects a Gurkha Guard of Honour at the Prince of Wales Barracks, Central.
BOTTOM: Major General Liu looks over operations during a visit to 28 (Army Co-operation) Squadron, RAF. A trip to Shenzhen by Major-General Dutton in May - the first time Hong Kong's British Commander has made an official visit to China since the establishment of the People's Republic of China in 1949 - marked the first formal contacts between the British Forces and Hong Kong's future garrison.
Photos courtesy of the Joint Service Public Relations Staff
Rugby players from the People's Liberation Army and the British Forces team up against the visiting Kidderminster team (gold and black stripes) from the UK. The PLA players were in Hong Kong for a 10-a-side rugby tournament and the British Forces offered to make up a full 15 during Kidderminster's 'social' tour of the region. Kidderminster won 30-7.
Electoral staff record the votes during the poll for Chief Executive of the Hong Kong Special
Administrative Region, held in the Convention and Exhibition Centre on December 11, won by shipping executive and businessman, Mr Tung Chee Hwa. BELOW: Governor Christopher Patten congratulates the Chief Executive (Designate), Mr Tung Chee Hwa, in a photo session after discussions at Government House. Mr Patten said the government would provide Mr Tung with staff and premises as he prepared for the territory's return to China's sovereignty on July 1, 1997.
吳光正
董建華
楊鐵樑
· #fikri - il 11,
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Kwan O Tunnels (1996); the new franchise for Citybus Company (1996); six Personal Communications Services Licences (1996); a satellite television uplink and downlink licence (1996) and the new franchise for New Lantao Bus Company (1996). A common view was also reached in September 1996 on the development of Container Terminal No. 9. In 1986, it agreed on the establishment of a separate Hong Kong register of shipping.
Lastly, the JLG's Airport Committee has taken an active role in preparations for the new airport. It was established under the terms of a Memorandum of Understanding in 1991. The Airport Committee agreed to the principles of the overall financing arrangements of the New Airport and the Airport Railway in 1994, and the Financial Support Agreements between the Hong Kong Government and the Airport Authority and the Mass Transit Railway Corporation in 1995. In 1996, the two sides. completed a comprehensive review of the progress of the Airport Core Programme and the implementation of the financial agreements for the new airport and airport railway.
The Airport Committee has also agreed to seven airport-related franchises, including franchises for air cargo services, aviation fuel supply services and aircraft catering services. It also reached consensus on the Airport Authority Ordinance and the membership of the Airport Authority Board for the new airport. On May 30, 1996, the committee signed an Agreed Minute on the early commissioning of the new airport's second runway.
Work Still to be Done in the JLG
Despite these achievements, there is still a significant amount of work to complete before July 1, 1997. This includes the transfer of government, legal and immigration issues.
The transfer of government involves issues such as consultations on the transitional Budget and related matters, the transfer of defence responsibilities and the framework which governs the future Chinese Garrison in Hong Kong, the implementation of the 1990 agreement on archives, and the future of the civil service. Arrangements are also needed for the implementation of the Agreed Minute signed in September 1996 on the Handover Ceremony. All of these issues must, by definition, be resolved before July 1, 1997.
Several legal issues remain unresolved. For example, about eight items regarding localisation of laws are still outstanding and early resolution is needed on the modalities for the adaptation of existing Hong Kong laws with the Basic Law. Agreement is needed on the continued application of a few international conventions, and on the commencement of bilateral agreements on the reciprocal enforcement and recognition of judgements in civil and commercial matters. Further bilateral agreements under the existing programmes (Mutual Legal Assistance, Surrender of Fugitive Offenders, Transfer of Sentenced Persons, Investments Promotion and Protection Agreements and Air Services Agreements) also need to be agreed to.
One of the most important groups of subjects still to be resolved relates to the remaining immigration issues on the JLG agenda. Agreement is needed on how to align the Immigration Ordinance with the relevant provisions of the Basic Law. It will also be necessary to implement the agreement on the preparations for the issue of HKSAR passports. Arrangements must be made to ensure that Hong Kong residents
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42
can travel as easily as possible to third countries once the SAR is established. It will also be necessary to work out the actual arrangements for the issue of travel documents other than HKSAR passports after July 1, 1997.
Land Commission
The Sino-British Land Commission was established in 1985 in accordance with Annex III to the Joint Declaration and will be dissolved on June 30, 1997. Its function is to conduct consultations on the implementation of the provisions of Annex III on land leases and other related matters. It meets in Hong Kong and had 33 formal meetings up to end 1996. It last met in November 1996.
The Land Commission has made solid progress since its establishment. It has reached agreement on 26 legal documents to be used in various types of land transactions covered by the provisions of Annex III; on effecting by legislation the extension of New Territories leases in accordance with paragraph 2 of Annex III; and on the principles for dealing with special purpose leases. In 1994, agreement was reached on arrangements for granting the land required for the new airport at Chek Lap Kok and the Airport Railway. Land grants for a River Trade Terminal in Tuen Mun and the development of Container Terminal No. 9 were agreed in 1995 and 1996 respectively.
As at December 1996, the two sides agreed to make available, during the 1996-97 financial year, a total of about 310 hectares of land. This takes to 2 874 hectares the total amount of land that the Land Commission has agreed to make available since its establishment.
Under the terms of the Joint Declaration, premium income obtained by the Hong Kong Government from land transactions is, after deducting the cost of land production, to be shared equally between the Hong Kong Government and the future SAR Government. The Hong Kong Government's share of premium income is put into the Capital Works Reserve Fund for financing public works and land development in Hong Kong.
The future SAR Government's share is held in a trust fund, called the Hong Kong Special Administrative Region Government Land Fund, established by the Chinese side of the Land Commission. The fund is managed under the direction and advice of an investment committee, which includes prominent bankers in Hong Kong, as well as a monetary expert from the Hong Kong Government. By June 30, 1996, about $105 billion had been transferred to the fund. This represents the future SAR Government's share of premium income since the Joint Declaration came into force on May 27, 1985.
The Basic Law
The Joint Declaration provides that the basic policies of the People's Republic of China regarding Hong Kong will be stipulated in a Basic Law of the HKSAR adopted by China's National People's Congress (NPC). The Basic Law Drafting Committee and Basic Law Consultative Committee were established in 1985 to undertake the drafting of the Basic Law and to canvass public views on the drafts. The first draft was published in April 1988, followed by a five-month public consultation exercise. The second draft, endorsed in February 1989 by the Standing Committee of the NPC for further consultation, reflected many of the views
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expressed during the first round of consultation. The second consultation exercise ended in October 1989. The second draft of the Basic Law was further reviewed in the light of the outcome of that exercise and formally promulgated in April 1990 by the NPC, together with the designs for the flag and emblem of the SAR. The Basic Law will come into effect on July 1, 1997.
Like the Joint Declaration, the Basic Law provides that the HKSAR will enjoy a high degree of autonomy and that the capitalist system and way of life shall remain unchanged for 50 years after July 1, 1997. It also prescribes the systems to be practised in the HKSAR.
Co-operation with the Preparatory Committee and Chief Executive (Designate)
The method for the formation of the First Government of the Hong Kong Special Administrative Region (HKSAR) is set out in a Decision of the National People's Congress of China adopted on April 4, 1990. The Decision provides that, within 1996, the National People's Congress shall establish a Preparatory Committee, which shall be responsible for preparing the establishment of the HKSAR and shall prescribe the specific method for forming the first Government and the first Legislative Council.
Hong Kong Government is committed to co-operate with the Preparatory Committee on the basis of three parameters, namely:
(a) that the arrangements for co-operation are fully consistent with the Joint
Declaration and the Basic Law, and are in the interests of Hong Kong;
(b) that the authority and credibility of the Hong Kong Government are not
compromised; and
(c) that the morale and confidence of the civil service are not affected, and that
civil servants are not subjected to conflicting loyalties.
To this end, a Liaison Office, headed by the Secretary for Constitutional Affairs, was set up as the designated channel of communication between the Hong Kong Government and the Preparatory Committee. The government has provided assistance in various areas to the Preparatory Committee, including supply of information and briefings on government policies and the use of airtime on television and radio for the Preparatory Committee to publicise the formation of the Selection Committee.
The National People's Congress Decision of April 4, 1990, also provides for the establishment of a Selection Committee by the Preparatory Committee. The Selection Committee shall recommend the candidate for the first Special Administrative Region Chief Executive through local consultations or through nomination and election after consultations, and report the recommended candidate to the Central People's Government for appointment.
The Governor reiterated in his 1996 Policy Address the Hong Kong Government's commitment to give the Chief Executive (Designate) all necessary assistance.
On December 11, 1996, Mr Tung Chee Hwa was selected by the Selection Committee as the Chief Executive (Designate) of the Hong Kong Special Administrative Region. The Governor and the Chief Secretary had their first meetings with Mr Tung on December 23 and 28 to discuss the assistance which Mr
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Tung might require. As a first step, Mr Tung will be provided with accommodation and staff for his private office. He will also be provided with other necessary assistance to facilitate his assumption of office on July 1, 1997.
Continuity of the Legislature
In his 1992 Policy Address, the Governor put forward proposals for the 1995 Legislative Council elections. The objective was to ensure that the electoral arrangements were open, fair and acceptable to the community and, at the same time, were within the framework of the Joint Declaration and the Basic Law.
The government would have preferred to legislate the proposals on the basis of agreement with the Chinese side. Hence, 17 rounds of talks with the Chinese side were conducted in 1993. Regrettably, no agreement could be reached. Because of the need to introduce legislation and given the constraints of the electoral timetable, the government had no choice but to press ahead and put forward the proposals to the Legislative Council in 1994. The proposals were approved by legislators. The elections held in September 1995 attracted a record number of candidates and a historically high voter turnout. The elections were widely regarded as open and fair.
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Since the breakdown of talks, the Chinese side has said on various occasions that there would be no 'through-train' Legislative Council. The Standing Committee of China's National People's Congress decided on August 31, 1994, that the Legislative Council elected in 1995 shall come to an end on June 30, 1997. At its second plenary meeting on March 24, 1996, the Preparatory Committee endorsed the setting up of a provisional legislature. According to the decision of the committee, this body is to exist until the first Special Administrative Region legislature is established, which will be no later than June 30, 1998.
Despite popular support for the current Legislative Council, China proceeded with its plan for a provisional legislature. On December 21, 1996, the body was chosen by a 400-member Selection Committee.
The corporate position of the British and the Hong Kong Governments on the continuity of the legislature is clear and well known. The electoral arrangements for the 1995 Legislative Council were open, fair and fully consistent with the Joint Declaration and the Basic Law. There is no basis for a provisional legislature in the Joint Declaration or the Basic Law. Until British sovereignty ends on June 30, 1997, the only constitutional legislature in Hong Kong is the current Legislative Council, elected openly and fairly by a record number of voters, and with a clear and legitimate mandate.
This position was reaffirmed by the Prime Minister and the Foreign Secretary on various occasions, and again in a statement issued by the British Government on December 20, 1996, which:
(a) explained why China's plan to have the provisional legislature start operating before July 1, 1997, would make a bad situation worse and was both undesirable and unnecessary;
(b) reminded China that it had a clear duty to return as soon as possible to unambiguous compliance with the Joint Declaration and to minimise the damage which a provisional legislature may cause;
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(c) called on China to honour the undertaking, given by the Chinese Foreign Minister to the Foreign Secretary, that the provisional legislature would not assume its functions before July 1, 1997;
(d) called on China to ensure that the provisional legislature is replaced as soon as
possible by a substantive legislature constituted by genuine elections;
(e) stated Britain's readiness to join China in submitting the question to
international legal settlement; and
(f) announced steps to promote future implementation of the Joint Declaration. The Hong Kong Government also issued a statement on the same day to give full support to the Foreign Secretary's statement. It reaffirms that up to June 30, 1997, the current Legislative Council is the only constitutional legislature in Hong Kong, and that the Hong Kong Government is committed to working with it.
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5 THE ECONOMY
HONG KONG'S economy picked up steadily during 1996, after a temporary setback towards the latter part of 1995. For 1996 as a whole, the Gross Domestic Product (GDP) grew by 4.7 per cent in real terms, the same as the growth rate attained in 1995. Exports of goods registered a considerably slower growth in 1996. There was, however, a concurrent marked slow-down in imports of goods for local use, resulting in a further narrowing of the visible trade deficit. This, together with a large and growing surplus in invisible trade, has contributed positively to the growth of GDP in 1996. Conditions in the labour market improved with the unemployment rate edging lower.
Earnings in most major sectors continued to show notable increases both in money terms and in real terms. The property market revived in 1996 after the consolidation in 1995. Consumer price inflation moderated markedly.
Like many economies in the region, Hong Kong suffered a setback in export growth in 1996, affected to various extent by the slow-down in import demand in some of the major markets and the abrupt global downturn in the electronic product cycle. Compounding the adverse demand effect was the relative strength of the Hong Kong dollar in line with the US dollar, which reduced the competitiveness of Hong Kong's exports in the world market. The North American Free Trade Agreement (NAFTA) could have also diverted to Mexico and Canada some US import demand formerly sourced from Asia.
Nevertheless, the growth in imports also decelerated significantly, contributed partly by the deceleration in re-export growth and partly by inventory adjustment leading to a decline in retained imports. As a result, the visible trade deficit narrowed to $138 billion, or 9 per cent of the value of imports in 1996, from $147 billion, or 9.9 per cent of the import value in 1995.
Exports of services continued to grow strongly in 1996, albeit less rapidly than in 1995. Apart from the strong growth in tourism, offshore trading and exports of professional and business services increased further. The surplus in invisible trade should be able to offset substantially the deficit in visible trade.
On domestic demand, consumer spending revived steadily. Of particular note was the resurrected buying interest in luxurious or durable items such as cars and home appliances in the latter part of 1996. Overall investment spending was generally sustained. Activities related to the major infrastructural projects, particularly those under the Airport Core Programme (ACP), remained intensive. However, growth should have tapered as the ACP progressed towards its peak.
THE ECONOMY
Labour market conditions improved during the year. In the fourth quarter of 1996, the seasonally adjusted unemployment rate was 2.6 per cent, down from the peak of 3.6 per cent in the three months ending November 1995. As manpower utilisation intensified, the underemployment rate also eased, to 1.6 per cent in the fourth quarter of 1996 from the peak of 2.5 per cent in the third quarter of 1995. The improvement was underlined by a broad-based strengthening in labour demand in 1996. Although labour supply still recorded a notable growth during the year, underpinned by substantial inflows of returnees, incoming expatriates and Chinese immigrants, total employment rose even faster. As a result, the overall balance of supply and demand in the labour market tightened. Labour earnings in most of the major sectors continued to increase both in nominal and in real terms.
The residential property market showed a marked pick-up, with active trading in 1996. Apartment prices rose substantially during the year. The sales market for office space also showed a notable revival, but the rental market remained generally soft. Shopping premises in popular locations had an improvement in sales, while rentals bottomed out in the latter part of the year. Activity in the industrial property market however remained subdued. Prices and rentals continued to decline.
The GDP deflator, as a broad measure of overall inflation in the economy, showed an increase of 5.3 per cent in 1996, compared with a 2.4 per cent increase in 1995. Consumer price inflation, measured in terms of the Consumer Price Index (A), rose by 6 per cent in 1996, considerably slower than the 8.7 per cent increase in 1995. Inflationary pressures from both domestic and imported sources moderated over the year. Export prices were broadly stable, while import prices eased.
Structure and Development of the Economy
Hong Kong, a small territory inhabited by more than six million people, is probably one of the most densely-populated urban economies in the world. With virtually no natural resources, Hong Kong has a deep-water harbour and is strategically located on the international time zone that bridges the time gap between Asia and Europe. It is also characterised by its proximity to China and strong traditional links with the South-East Asian economies.
A low tax environment, free and fair market competition, a sound legal and financial framework, a fully convertible and secure currency, a highly efficient network of transport and communication and, not least, a competent workforce working along with a pool of enterprising entrepreneurs are all precious assets of Hong Kong. These together have contributed to the success of the Hong Kong economy.
Hong Kong is now ranked the eighth-largest trading entity in the world. It operates the busiest container port in terms of throughput. Its airport is the third-busiest in terms of the number of international passengers and the second-busiest in terms of the volume of international cargo handled. It is also the world's fifth-largest banking centre in terms of the volume of external banking transactions, and the fifth-largest foreign exchange market in terms of turnover. Its stock market is Asia's second- largest in terms of market capitalisation. All these show that Hong Kong has firmly established itself as a major international trade and financial centre. Hong Kong owes its strength to business-friendly government policies, sound economic fundamentals, high degree of internationalisation and cultural openness. On these
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THE ECONOMY
virtues, the US Heritage Foundation ranks Hong Kong the freest economy in the world, while the World Economic Forum ranks Hong Kong the world's second-most- competitive economy, one place higher than in 1995.
Over the past two decades, the Hong Kong economy has nearly quadrupled. With its GDP growing at an average annual rate of about seven per cent in real terms, Hong Kong has outperformed the Organisation for Economic Co-operation and Development (OECD) countries and has been growing more than twice as fast as the world economy. Per capita GDP has almost tripled in real terms, equivalent to an average annual growth rate of about five per cent in real terms. Valued at US$24,500 in 1996, Hong Kong's per capita GDP was next only to Japan and Singapore in Asia. It has surpassed that of the United Kingdom, Canada and Australia, and was broadly at par with that of France. Benefiting from this respectable economic performance, the local workforce has been able to enjoy a continuous rise in income, both in money terms and in real terms.
Chart 1
Percent
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0
-2.0
Gross Domestic Product (year-on-year growth rate in real terms)
L
LIBRAR
GDP
Per capita GDP
1975
1977 1979 1981 1983 1985 1987 1989 1991 1993 1995
Over the past two decades, the Hong Kong economy has been expanding rapidly, with GDP growing by 7% per annum and per capita GDP by 5% per annum in real terms.
48
As a small and open economy, Hong Kong's economic success owes a great deal to the remarkable performance of its external trade sector. Trade in goods and services expanded markedly over the past two decades with average annual growth rates of 14 per cent and 9 per cent respectively in real terms. Reflecting the highly externally- oriented nature of the Hong Kong economy, the total value of visible trade (comprising re-exports, domestic exports and imports) reached $2,940 billion in 1996, at a ratio of 246 per cent to the GDP. This compared with the corresponding ratios of 143 per cent in 1970, 148 per cent in 1980 and 221 per cent in 1990. Including the value of exports and imports of services, the ratio was 286 per cent in 1996. The
THE ECONOMY
corresponding ratios in 1970, 1980 and 1990 were 181 per cent, 181 per cent and 260 per cent.
External investment has played an important role in Hong Kong's economic development. At the end of 1994, the total stock of inward direct investment in Hong Kong rose to $730.2 billion, from $674.5 billion in 1993. There was an increase of 8.3 per cent in value terms.
The preliminary estimate of GNP, comprising GDP and net external factor income flows, was $1,018 billion at current prices in 1994. This was 0.7 per cent higher than Hong Kong's GDP in the same year. Reflecting the role of Hong Kong as an international financial centre, both the external factor income inflows and outflows were large, at $371 billion and $364 billion respectively, equivalent to slightly over one-third of GDP.
Contributions of the Various Economic Sectors
The relative importance of the various economic sectors can be assessed in terms of their contributions to the GDP and to total employment. There is little primary production (agriculture and fisheries, mining and quarrying) in Hong Kong. Its contribution to GDP and employment is very small.
Chart 2
Gross Domestic Product by broad economic sector
1980
1995
Secondary production 31.6%
Secondary production 16.0%
Primary production 1.0%
Primary production 0.2%
Tertiary production 67.5%
Tertiary production 83.8%
Over the past 15 years, the tertiary services sector has become increasingly important in terms of contribution to GDP.
Within secondary production (comprising manufacturing; construction; and the supply of electricity, gas and water), the manufacturing sector still contributes the largest share in terms of both GDP and employment. In line with the continued expansion of the service sectors and the on-going relocation of manufacturing
49
THE ECONOMY
processes to China since the mid-1980s, the contribution of the manufacturing sector to GDP declined steadily, from 24 per cent in 1980 to around 22 per cent during the period 1985 to 1987, 18 per cent in 1990, and further to 9 per cent in 1995. On the other hand, the share of the construction sector in GDP, having fallen from 7 per cent in 1980 to around 5 per cent in 1985, has stayed at around 5 per cent since then. The combined share of the supply of electricity, gas and water, at 2 per cent in 1995, was broadly the same as the 3 per cent level averaged over the past 10 years.
The open-door policy and economic reforms in China have not only provided a huge production hinterland for local manufacturers, they have also created an abundance of business opportunities for a wide range of service activities in Hong Kong, including freight transport, telecommunications, banking, real estate development, and professional services such as legal, accounting and insurance services. Hence, since the mid-1980s, there has been a further orientation of the Hong Kong economy towards services.
Reflecting this, the significance of the tertiary services sector as a whole (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and business services; community, social and personal services; and ownership of premises) in terms of its contribution to GDP rose steadily, from around 67 per cent in 1980 to 70 per cent in 1985 and 74 per cent in 1990, and further to 84 per cent in 1995.
Employment by broad economic sector
Chart 3
1980
1996
Secondary production 50.1%
Secondary production 20.7%
Primary production 1.5%
Tertiary production 48.4%
Tertiary production 78.7%
Primary production
0.6%
With the on-going relocation of lower value-added and less skill-intensive manufacturing processes to China and steady expansion of service sector activities in Hong Kong, the tertiary services sector has overtaken the secondary production sector to become the largest employer in the economy.
50
The increasing orientation of the Hong Kong economy towards services was also evident in employment. The share of the tertiary services sector as a whole increased
THE ECONOMY
from 48 per cent in 1980 to 54 per cent in 1985, and further to 79 per cent in 1996. On the other hand, the share of the manufacturing sector in total employment was on a distinct downtrend, falling from 42 per cent in 1980 to 36 per cent in 1985, and further to 11 per cent in 1996.
The Service Sectors
Along with the structural change in the economy, the services sector has flourished and diversified in types of activities. Of particular note is the rapid growth and development in finance and business services, including banking, insurance, real estate, and a wide range of other professional services.
Driven by China's economic reforms and trade liberalisation, as well as by the dynamic growth in the Asia-Pacific region, trade between Hong Kong and the region showed phenomenal growth in the 1980s. The past decade saw the re-emergence of Hong Kong as a major entrepôt serving the region in general and China in particular. Nearly 90 per cent of Hong Kong's re-exports involve China either as a source or as a destination.
Over the years, Hong Kong has developed an efficient wholesale and retail network. to cater for the growing consumption needs of a more affluent population. Supermarkets, large department stores, convenience stores and modern shopping centres have become increasingly popular. This has been reinforced by a continued growth in tourism, which hereto has been a major source of foreign exchange for Hong Kong. With the rise in household incomes over the years, there has been growing demand for goods and services of a better quality, and services in the community, social and recreational fields have also grown substantially.
The rapid growth in trade and other business links between Hong Kong and the Asia-Pacific region in general and China in particular also boosted exports of services. Trade in services continues to expand rapidly, as Hong Kong's role as a major regional trade, finance and business services centre in the region deepens further. Apart from trade-related services and tourism, there has also been an increasing demand for professional and other support services. Offshore trading, cross-border land transport services and other business services, including exports of construction, legal, accountancy, computer and management consultancy services to China and other East Asian economies, have all shown rapid increases.
Between 1986 and 1996, exports of services grew at an average annual rate of 8 per cent in real terms, and imports of services, at 9 per cent. The major components of Hong Kong's trade in services are shipping, civil aviation, tourism, and various financial services. The shares of transportation services in total exports and total imports of services were 36 per cent and 25 per cent respectively in 1995. The corresponding shares for travel services were 27 per cent and 49 per cent. Other trade- related services such as offshore trading and purchasing/merchandising services contributed 21 per cent of the total value of exports of services and 6 per cent of the total value of imports of services. The corresponding shares for financial and banking services were 7 per cent and 4 per cent.
Analysed by sector, the contribution to the GDP of the wholesale, retail and import/export trades, restaurants and hotels was the largest, rising from 21 per cent in 1980 to 23 per cent in 1985, and further to 27 per cent in 1995. The second-largest contributor was financing, insurance, real estate and business services, contributing
51
THE ECONOMY
25 per cent to the GDP in 1995. The corresponding share in 1980 was 23 per cent, but it fell to 16 per cent in 1985, affected by the slump in the property market in the early 1980s. The share of community, social and personal services in the GDP reached 17 per cent in 1995. It rose from 12 per cent in 1980 to around 17 per cent in 1985, before falling back to about 14 per cent in 1988. Transport, storage and communication had a steadily rising share in the GDP, from 7 per cent in 1980 to 8 per cent in 1985 and further to 10 per cent in 1995.
Chart 4
Transport, storage and
communication
7.4%
Gross Domestic Product by major service sector
1980
Wholesale, retail, import/export trades. restaurants and hotels 21.4%
1995
Financing. insurance, real
estate and
Transport, storage and communication
business services 24.9%
9.8%
Financing.
insurance, real
estate and
business services
23.0%
Community, social and personal
Community, social
Others 36.1%
services
17.1%
and personal services 12.1%
Others 20.8%
Wholesale,
retail, import/export trades,
restaurants and hotels
27.4%
The distributive and catering trades as well as financing, insurance, real estate and business services remained the largest service sectors in terms of contribution to GDP.
52
Between 1985 and 1995, the net output or value added component of the financing, insurance, real estate and business services sector showed the fastest increase (by 20 per cent); followed by the wholesale, retail and import/export trades, restaurants and hotels; and transport, storage and communication (both by 17 per cent). The combined value added of the service sectors as a whole rose markedly, at an average of 17 per cent per annum over this period.
The wholesale, retail and import/export trades, restaurants and hotels was the largest employer, sharing 35 per cent of the total employment in 1996. This was followed by community, social and personal services (21 per cent); transport, storage and communication (11 per cent); and financing, insurance, real estate and business services (12 per cent). Taken together, the services sector accounted for 79 per cent of the total employment in 1996. The respective shares of these sectors in employment in 1981 were 19 per cent, 16 per cent, 8 per cent and 5 per cent, giving a total of 48 per
cent.
Chart 5
Wholesale, retail.
import/export trades,
restaurants and
hotels
20.0%
Transport, storage and
commu-
nication
7.3%
Financing. insurance.
THE ECONOMY
Employment by major service sector
1980
1996
Others 51.6%
Wholesale, retail, import/export trades, restaurants and hotels
34.7%
Others 21.3%
Transport, storage and
Financing. insurance,
real estate and business services
Community, social and personal services 21.4%
commu- nication
real estate and
Community, social
11.0%
business
services
and personal services 16.5%
4.6%
11.6%
Over the years, the distributive and catering trades, community, social and personal services, as well as financing, insurance, real estate and business services have become important employers in the services sector.
The Manufacturing Sector
Hong Kong's manufacturing firms are well known for their versatility. An extensive local sub-contracting system, comprising a large number of small establishments, has greatly facilitated production in coping with the frequent changes in demand in the overseas markets. Moreover, the increasing use of outward processing facilities in China has enhanced the flexibility of production capacity and helped to maintain the price competitiveness of Hong Kong's products. A predominant proportion of Hong Kong's manufacturing output is for export.
Over the years, the pressure of protectionism in several major markets and growing competition from other economies in East Asia have led to even greater diversification in both products and markets. This is attributable to the initiative of local manufacturers and exporters as well as their own dedicated promotion effort. To maintain competitiveness, there has also been a continuous upgrading of product quality.
In consequence, many industries have emerged and grown, the most notable one being electronics. The textiles and clothing industries remain prominent, notwithstanding their continuous declines in relative importance. Other important industries include printing and publishing, machinery and equipment, fabricated metal products, plastic products, plastic watches and clocks and jewellery.
Of particular note is the significant improvement in labour productivity in the manufacturing sector. During the period 1980 to 1995, the value of net output by the manufacturing sector grew at an average annual growth rate of 7 per cent, while
53
THE ECONOMY
manufacturing employment fell at an average annual rate of 5 per cent. Even after taking into account the effect of price increases on the output value, labour productivity improved significantly.
Chart 6
Index
250
200
150
100
香
50
0
Output per employee in the manufacturing sector (March 1991 = 100)
1985 1986 1987 1988
1989 1990 1991 1992 1993 1994 1995 1996*
Output per employee in the manufacturing sector has been on a general uptrend over the years.
Average of Q1 to Q3 1996 only
HONG K
54
China has become the largest market for Hong Kong's domestic exports, accounting for about 29 per cent of domestic exports in 1996. The importance of other economies in the Asia-Pacific region as a market for Hong Kong's exports has also risen steadily over the years. Hong Kong's exports have also diversified into new markets, including countries in the Middle East, Eastern Europe, Latin America and Africa.
Increasing Economic Links between Hong Kong and China
Economic links between Hong Kong and China have grown from strength to strength, since China adopted economic reform and open-door policy in 1978. This has brought about substantial economic benefits to both places.
Specifically, visible trade between Hong Kong and China has grown strongly since 1978, at an average annual rate of 29 per cent. In 1996, the two-way trade grew further, albeit only moderately, by 6 per cent. Growth performance varied among the main trade aggregates. While imports from China and re-exports to China were up by 6 per cent and 9 per cent respectively in 1996, domestic exports to China recorded a decrease of 3 per cent. Nevertheless, as the pace of growth in Hong Kong's visible trade with other overseas economies also decelerated, China still accounted for 36 per cent, the largest share in Hong Kong's total trade and hence remained Hong Kong's
THE ECONOMY
largest trading partner in 1996. Its share in Hong Kong's re-export trade was even higher at 90 per cent, making China both the largest market for and source of Hong Kong's re-exports. Reciprocally, Hong Kong was China's third largest trading partner in 1996 (after Japan and the United State), accounting for 14 per cent of China's total trade.
Likewise, there has been a substantial increase in invisible trade and investment flows between Hong Kong and China. At present, Hong Kong is a major service centre for China generally and South China in particular, providing a wide range of financial and business support services like banking and finance, insurance, accounting, transport, warehousing etc. It is at the same time a principal gateway to China for business and tourism. In 1996, 29 million trips were made by Hong Kong residents to China and another 2 million trips were made by foreign visitors to China through Hong Kong. These represented increases of 9 per cent and 11 per cent respectively over 1995.
Moreover, Hong Kong is the largest source of external direct investment in China. By end-1996, the cumulative value of Hong Kong's realised direct investment in China reached about US$100 billion, accounting for about three-fifths of the total value. Also worthy of note is that there has been a notable shift in the composition of Hong Kong's direct investment in China in more recent years, from outward processing industries to other economic sectors such as hotels and tourist-related facilities, real estate and infrastructure development. Hong Kong's economic links with Guangdong are far more intimate than those with other places in China. At end- 1996, the cumulative value of Hong Kong's realised direct investment in Guangdong was estimated at US$40 billion, accounting for about 80 per cent of the total value. Currently, some four million Chinese workers are regularly employed in the Province by Hong Kong industrial ventures. This is more than 10 times the size of Hong Kong's own manufacturing workforce.
In the opposite direction, there has likewise been a sizeable flow of investment capital from China to Hong Kong over the past years. By end-1994, China invested a total of US$17 billion in the territory, making it the third-largest external investor, after the United Kingdom and Japan. While China maintains a high investment stake in such traditional lines of business as import/export trades, wholesale/retail trades, banking, transport and warehousing, there has recently been a growing diversification of such investment into other spheres such as real estate, hotels, financial services, manufacturing and infrastructure development.
Along with the surge in these cross-border trade, investment and people flows, financial links between Hong Kong and China have also been on a rapid increase over the years. By end-1996, external liabilities of Hong Kong authorised institutions to entities in China reached about $300 billion, while their external claims on entities in China were even larger, at about $360 billion. These represented increases of around 32 per cent and 24 per cent respectively over a year earlier. The Bank of China Group, which has been established here for decades, is now the second-largest banking group in Hong Kong after the HongkongBank Group. It started issuing Hong Kong dollar bank notes in May 1994. The other three state specialised banks, namely the People's Construction Bank of China, the Agricultural Bank of China, and the Industrial and Commercial Bank of China, were granted banking licences to operate in Hong Kong in 1995. On the other hand, the HongkongBank Group, the
55
56
THE ECONOMY
Bank of East Asia and the Standard Chartered Bank, are among the best-represented foreign banks in China.
Hong Kong has been playing an important role as the major funding centre for China. As well as a direct source of funds, Hong Kong often serves as a window through which foreign funds are channelled efficiently into China for financing the various development projects there. So far, most of China's fund-raising activities in the territory have taken the form of syndicated loans, but more recently an increasing number of China-related banks and enterprises have raised funds through issues of negotiable certificates of deposit, bonds and shares. Since mid-1993, H shares have been listed in Hong Kong's stock market by large state-owned enterprises in China. At end-1996, a total of 23 such enterprises were listed on the Hong Kong Stock Exchange, raising a total equity capital of $26.8 billion.
The Economy in 1996 External Trade
共
圖
Re-exports and domestic exports showed weaker performance in 1996 than in 1995. The strengthening of the Hong Kong dollar along with the US dollar after the second quarter of 1995 reduced the competitiveness of Hong Kong's exports in the world. market. The situation was further aggravated by the slow-down in import demand in some of the major markets, and the abrupt global downturn in the electronic product cycle.) NAFTA could have also diverted to Mexico and Canada some USA import demand which was formerly sourced from Asia. For 1996 as a whole, the value of re- exports rose by 7 per cent. (As there was little price change, the increase in real terms
Chart 7
Growth in Hong Kong's visible trade (year-on-year growth rate in real terms)
Percent
50.0
Re-exports
40.0
30.0
20.0
10.0
0
Imports
Total exports
Domestic exports
-10.0
1985 1986 1987
1988 1989 1990 1991 1992 1993 1994 1995 1996 Re-export growth in 1996 was considerably slower than in 1995. Domestic exports declined. Imports also grew more slowly.
The leaders of countries taking part in the Asia-Pacific Economic
Co-operation forum in Manila line up for a group photograph wearing the local traditional dress - in this case the Philippines barong shirt.
།3
い
· Service industries provide an ever-increasing proportion of jobs in Hong Kong as workers refine their skills. Hong Kong's aircraft workers have provided the region with world-class maintenance and repair facilities for half a century at Kai Tak airport. Plans are well advanced to build on that tradition when operations shift to the new airport at Chek Lap Kok.
ONG
Hong Kong picked up six medals, including four golds, at the International Culinary Olympics in Berlin during June. Hong Kong's seven-chef team created a winning wonton appetiser using prawns, scallops, black fungus and vermicelli, with a lemon grass sauce. The team also excelled in hot food preparation, cold food preparation (with six seafood appetisers) and the pastry section. The super-chefs, pictured at Berlin's Brandenburg Gate, are (from left): Kelvin Kiang, Hong Kong Jockey Club; Ivan Man, The Regent Hotel; Andy Chow, Hyatt Regency Hong Kong; Bruno von Siebenthal, Hotel Furama; Perry Yuen, Island Shangri-La Hong Kong; Matthias Schubel and Eric Shum (both Hotel Furama). BOTTOM: Sweet perfection is the promise at workers pay close attention to creating top-quality chocolates at Lucullus Food & Wines, which won an Industry Department Quality Award for 1996.
LUCULLUS
Mülhe
Photo courtesy of Mr Bruno von Siebenthal
Restaurants and telecommunications make a valuable contribution to the
Hong Kong economy, as the signs make clear in this evening view of busy Causeway Bay.
麵仔車 *
廳餐茶
第
·第
北美洲 3/F.
B
:
線
The
Snack and Stein
ISI PIDOr
。
STAR
中西美食通宵營
52525
聖蘿
SAINT LAUREN
BAKERY
光傳訊
PAGING
銀座商場
銅鑼灣
教育 雞湯翅
2836 6010
|
SHANGHAI PO KON
RESTAURANT
猶着
大家樂
神記
GINZA
CENTRE/
SHOPPING
TAXI
THE ECONOMY
was 8 per cent.) Domestic exports fell by about 8 per cent both in value terms and in real terms in 1996.
Re-exports to China for meeting its own demand rose further in 1996 albeit it at a slower rate than in 1995. The moderation, amid a continued strong growth in retail sales in China, probably reflected an increasing shift in the pattern of consumer spending from consumer goods to consumer services, as well as from imports to locally produced goods. However, re-exports to China for outward processing purposes were slack, affected by the slow-down in import demand in the US market, the cut in value-added tax rebate on export items by the Chinese government, and the increasing trend towards direct shipment and transshipment from ports in China. There was, nevertheless, a significant rebound in the third quarter. Taken together, growth in re-exports to China eased to 12 per cent in real terms in 1996, from a 15 per cent increase in 1995.
Re-exports to the USA grew only modestly-by 4 per cent in real terms in 1996- with a decline of 3 per cent in the first half of the year and an increase of 10 per cent in the second half. Indeed, USA imports from many sources in East Asia and the European Union also slowed down over the course of 1996. Nevertheless, Hong Kong's re-exports to Japan and the United Kingdom remained robust, rising by 15 per cent and 13 per cent respectively in real terms in 1996. Re-exports to Germany showed a steady growth of 2 per cent in real terms in 1996, compared with 6 per cent in 1995. China remained the largest supplier of Hong Kong's re-exports, followed by Japan, Taiwan, the USA and the Republic of Korea.
Analysed by end-use category, consumer goods, and raw materials and semi- manufactures remained the two largest categories in Hong Kong's re-exports, with respective shares of 48 per cent and 29 per cent of the total value in 1996. Re-exports of tobacco manufactures, cameras, flashlight apparatus and supplies for photography, cotton yarn and thread, and paper and paperboard registered faster increases than re-exports of other commodity items.
In the first three quarters of 1996, seaborne outward transshipment fell by 5 per cent in tonnage terms over a year earlier, representing a consolidation after the upsurge of 30 per cent in 1995. The decline was concentrated mainly in transshipment flows originating from North China, as enhancement in port infrastructure in places such as Shanghai and Tianjin reduced the need to transship through Hong Kong. A slow-down in this stream of transshipment probably entailed less adverse impact on value-added and income for Hong Kong, unlike transshipment flows in South China which were more of an outward processing nature.
outward processing nature. Analysed by market, transshipment to Japan, Taiwan, China and the USA rose by 11 per cent, 11 per cent, 6 per cent and 4 per cent, respectively, in tonnage terms in the first three quarters of 1996 over a year earlier. On the other hand, transshipment to Germany, and the UK fell, by 19 per cent and 20 per cent, respectively. Manufactured goods continued to account for the largest share of seaborne outward transshipment, followed by chemicals and related products, crude materials, foodstuffs, and machinery and transport equipment.
Affected by the same factors that influenced re-export growth, domestic exports to most of the major markets showed weaker performance in 1996 than in 1995. For the year as a whole, domestic exports to Singapore, the USA, Germany, the UK, China and Japan all fell in real terms by 17 per cent, 13 per cent, 7 per cent, 4 per cent, 3 per
57
THE ECONOMY
58
cent and 3 per cent, respectively. These six markets together accounted for 75 per cent of Hong Kong's total domestic exports in 1996. Meanwhile, domestic exports to many other economies in the Asia-Pacific region and the European Union also moderated in 1996, compared with 1995.
Imports showed a modest increase of 3 per cent in value terms in 1996. Discounting the drop in import prices, there was an increase of 4 per cent in real terms. This was much slower than the 14 per cent increase in 1995. Apart from the marked deceleration in re-export growth, the significant slackening in retained imports also contributed. The latter fell by 2 per cent in real terms in 1996, contrasting with the large increase of 13 per cent in 1995. The moderation in retained imports in 1996 reflected mainly an adjustment to the large inventory build-up in 1995. Analysed by major supplier, China remained the largest source of Hong Kong's imports, followed by Japan, Taiwan, the USA, Singapore and the Republic of Korea.
The visible trade deficit narrowed to $137.7 billion, equivalent to 9 per cent of the total value of imports in 1996. The corresponding figures in 1995 were $147 billion and 9.9 per cent. This result was helped by a gradual improvement in the terms of trade as import prices eased, while export prices remained generally stable. A slower intake of raw materials and semi-manufactures, consumer goods and capital goods following the substantial inventory build-up in 1995 also contributed.
Domestic Demand
Local consumer spending revived steadily during the year. Of particular note was the resurrected buying interest in luxurious or durable items such as cars and home appliances. Total retail sales rose by 3 per cent in volume terms in the third quarter of 1996 over a year earlier, led by 12.1 per cent growth in the sales of consumer durables. This followed growth rates of 0.1 per cent, 0.7 per cent and 2.5 per cent, respectively, in the first, second and third quarters. Private consumption expenditure recorded a growth of 4.4 per cent in real terms in 1996. Government consumption expenditure rose by 4.6 per cent in real terms in 1996 on a national accounts basis. The growth in overall investment spending was generally sustained in 1996. Activities related to the major infrastructural projects, particularly those under the Airport Core Programme (ACP), remained intensive. However, growth should have tapered as the ACP reached its peak. The Public Housing Programme maintained its momentum. Also, the revival in the residential property market should have led to increased private sector building output. Meanwhile, the on-going process of automation, mechanisation and office computerisation continued to support growth in spending on machinery and equipment.
The Labour Market
The labour market improved during the year. In the fourth quarter of 1996, the seasonally adjusted unemployment rate and the underemployment rate stood at 2.6 per cent and 1.6 per cent respectively, compared with 3.5 per cent and 2.3 per cent in the same quarter in 1995. The improvement was underpinned by a faster growth of total employment than total labour supply. In 1996, total labour supply rose by 3.1 per cent, while total employment rose by 3.5 per cent. The increased demand for labour in recent quarters was rather broad-based, with employment in most of the major service sectors picking up to various extent, and with employment in construction also strengthening markedly. But employment in the local manu-
Chart 8
Percent
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
THE ECONOMY
Domestic demand
(year-on-year growth rate in real terms)
Investment demand
in terms of GDFCF
Private consumption demand
0
-2.0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
In 1996, domestic demand was underpinned by continued strong growth in investment demand and a steadily reviving consumer demand.
facturing sector remained slack, amid the weak performance of domestic exports and a continuing trend of relocating production processes across the border.
Employment conditions varied considerably among occupations. Unemployment and underemployment were mainly concentrated in the production-related workers and at the semi-skilled and unskilled levels. Professional, managerial, and ad- ministrative workers recorded considerably lower unemployment and under- employment rates.
The on-going structural change of the economy prompted a continued shift in employment from the manufacturing sector to the service sectors. Between September 1995 and September 1996, employment in the service sectors as a whole rose by 3 per cent to 1 932 000, and vacancies increased by 4 per cent to 43 300. Among the various service sectors, employment in transport, storage and communications showed the fastest increase, by 6 per cent. This was followed by community, social and personal services, by 5 per cent; and financing, insurance, real estate and business services, by 4 per cent. Concurrently, employment in the wholesale, retail, import/export trades and restaurants and hotel rose by 2 per cent. Employment and vacancies in the manufacturing sector remained on a downtrend, falling by 15 per cent and 14 per cent to 327 500 and 5 900 respectively in September 1996 compared with a year earlier. Employment increased in building and construction sites, by 16 per cent, while vacancies fell sharply by 43 per cent. Reflecting mainly employment in foundation and superstructure construction, employment in the building and construction industry as a whole, comprising both site and non-site workers, also showed a notable increase of 18 per cent.
59
60
Chart 9(a)
Percent
5.0
4.0
3.0
2.0
1.0
0
-1.0
-2.0
THE ECONOMY
Labour force and the employed population (year-on-year growth rate)
Labour force
Total employment
1992
1993
1994
1995
QI Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4
1991
1996
The growth in total employment outpaced that in labour supply particularly in the latter part of 1996.
Chart 9(b)
Unemployment and underemployment rates
Percent
4.0
3.5
3.0
2.5
Seasonally adjusted unemployment rate
2.0
1.5
Underemployment rate
1.0
0.5
0
QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4
1991
1992
1993
1994
1995
The labour market improved during 1996, following the easing in 1995.
1996
THE ECONOMY
Chart 10
Employment by broad economic sector
Number ('000)
2000
Service sectors as a whole (left scale)
1500
Number ('000)
80
70
Building and construction sites (right scale)
1000
60
500
Manufacturing sector (left scale)
0
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
1991
1994
1995
1996
1992
}
1993
The structural shift of manpower from manufacturing to services continued in 1996. Employment at construction sites rose sharply, reflecting in part the momentum of implementation of the Airport Core Programme.
Chart 11
Percent
15.0
10.0
5.0
0
-5.0
Earnings by broad economic sector (year-on-year rate of change in real terms)
Service sectors
as a whole
Manufacturing sector
-10.0
QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3
1991
1992
1993
1994
1995
1996
Earnings continued to rise in real terms in 1996, underpinned by more moderate inflation.
50
40
10
61
THE ECONOMY
62
The local workforce generally enjoyed a continued rise in income. In the third quarter of 1996, average earnings in the service sectors as a whole registered increases of 8 per cent in money terms or 3 per cent in real terms. Among the major service sectors, earnings in the wholesale, retail, import/export trades and restaurants and hotels had the most rapid increase, by 11 per cent in money terms or 5 per cent in real terms. This was followed by earnings in community, social and personal services; and in financing, insurance, real estate and business services, both with increases of 8 per cent in money terms. After discounting inflation, the corresponding increases in real terms were 3 per cent. Earnings in transport, storage and communications rose by 7 per cent in money terms and 1 per cent in real terms.
The Property Market
The residential property market picked up distinctly in 1996. Primary sales generally met with a good response, with substantial over-subscription in many instances. Trading in the secondary market was also active. While this was supported by a strong end-user demand, the cyclical downturn during 1995 had also rendered flats relatively more affordable to prospective buyers in the beginning of the year. The cuts in the local interest rate and the offer of more favourable mortgage terms by the banks as competition for business intensified, plus the intensive sales promotion and offers of more flexible payment terms by developers further stimulated demand for residential property. By the end of 1996, both market activity and prices returned to the previous peak in early 1994. Flat prices in selected major residential developments in December 1996 on average surpassed the previous peak in April 1994, and were also 37 per cent above the trough in October 1995. Rentals for newly leased flats were on a moderate rise. Towards the end of the year, there were signs of growing speculative activities, particularly at the luxurious end of the market. The sales figures of some popular new developments showed a very high proportion of new flats being purchased by shell companies for quick resale.
On commercial property, the market for office space recovered noticeably in 1996, following the correction in 1995. Investment interest in Grade A office space in prime locations was particularly strong. However, trading in Grade B and Grade C office strata titles was relatively more moderate. Prices for office space showed some increase but the rental market remained soft. With better retail business, the sales market for shopping space in prime locations turned more active.
Sales activity in the industrial property market showed no signs of recovery in 1996. Despite some revived interest in acquiring conventional flatted factory buildings for redevelopment or for godown use, this market remained generally slack. The market for industrial-cum-office premises also remained slack.
Government land sales in 1996 were met with enthusiastic response. For auctions, prices fetched for residential as well as commercial sites were all above market expectations. In particular, the price fetched for the site at Hung Hom Bay Reclamation was the highest ever achieved for a single site at government land
auctions.
Inflation
Consumer price inflation was generally on a moderating trend in most of 1996. With a stronger US dollar and reduced or continued low inflation in the major supplier economies like China, Japan and the USA, there was little price pressure from
THE ECONOMY
imported sources. Reflecting this, import prices were generally on a decline in recent quarters. Domestically generated inflationary pressures from labour costs and rental costs were largely contained. However, with the gradual firming of wages and rentals, and with the pickup in economic growth beginning to add pressure on consumer prices, the moderating trend in inflation tended to be reversed towards the end of 1996.
Reflecting these developments, the Consumer Price Index (A) recorded year-on- year increase of 6.2 per cent and 6.4 per cent in the first and second quarters of 1996 respectively. It then moderated to 5.4 per cent in the third quarter, before picking up to 6 per cent in the fourth quarter. For 1996 as a whole, the CPI(A) rose by 6 per cent, substantially lower than the 8.7 per cent increase in 1995. The increase in the CPI(B) averaged 6.4 per cent, also below the corresponding increase of 9.2 per cent in 1995. Similarly, the average increase in the Hang Seng CPI, at 6.6 per cent, was also significantly slower than the increase of 9.6 per cent recorded in 1995. The Composite CPI, as a combined measure of consumer price inflation covering these three sub- indices, rose by 6.3 per cent in 1996, well below its corresponding increase of 9.1 per cent in 1995.
Chart 12
Consumer Price Indices (year-on-year rate of increase)
Percent
14.0
13.0
12.0
11.0
Consumer Price Index (B)
10.0
9.0
8.0
7.0
6.0
5.0
4.0
Hang Heng Consumer Price Index
Composite Consumer
Price Index
Consumer Price Index (A)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1992
1993
1994
1991
Consumer price inflation was on an easing trend for most of 1996.
1995
1996
Benefiting from the stronger dollar and low inflation in China, the prices of those components of the CPI(A) with a greater import content, such as food, other consumer goods and consumer durables, generally showed much slower increases than the overall annual average increase. On the other hand, the prices or costs of those components with a greater domestic input content, such as, housing,
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THE ECONOMY
64
miscellaneous services and transport, recorded faster increases than the average, but still represented significant moderation over 1995.
The GDP deflator, as a broad measure of overall inflation in the economy, showed an increase of 5.3 per cent over the course of 1996, compared with a 2.4 per cent increase in 1995.
Economic Policy and Public Finances
Economic Policy
The government's basic policy of minimum interference and maximum support for the economy is a key factor underlying Hong Kong's continued economic success. However, its small size and open nature leave the economy vulnerable to external factors, and government actions designed to counter these influences are of limited effectiveness.
The government advocates free and fair competition. Business decisions are left to the private sector, except where social considerations are over-riding. It is considered that the allocation of resources in the economy is best left to market forces. Adopting this free-market philosophy, the government has not sought to influence the structure of industry through regulations, tax policies or subsidies. The tax system is kept as simple as possible. The corporate tax rate, at 16.5 per cent, is low by international standards.
Maintaining a small and efficient public sector is a crucial aspect of Hong Kong's fiscal policy. The underlying principle is to ensure that the government will not crowd out an excessive amount of resources from the private sector. In concrete terms, the growth rate of public sector expenditure is to be kept within the trend growth rate of the economy.
Another important role played by the government is to provide a good environment and a sound legal and institutional framework in which business can flourish. Accordingly, individual sectors in the economy are not burdened by undue government regulations. Industries in Hong Kong are able to adapt swiftly to changes in market conditions, and the economy as a whole is able to weather shocks. The simple tax structure and low tax rate, in particular, provide a good incentive for workers to work and for entrepreneurs to invest.
Structure of Government Accounts
In accounting terms, the public sector is taken to include the Hong Kong Government itself, the Hong Kong Housing Authority, the Urban Council, the Regional Council and the government trading funds. Government grants and subventions to institutions in the private or quasi-private sectors are included, but not spending by organisations in which the government has only an equity stake (such as the Mass Transit Railway Corporation, the Kowloon-Canton Railway Corporation and the Airport Authority).
The government controls its finances through a series of fund accounts. The General Revenue Account is the main account for day-to-day departmental expenditure and revenue collection. Six other funds exist mainly to finance capital investments and expenditure, and government loans. They are the Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Loan Fund and Lotteries Fund.
THE ECONOMY
The Capital Works Reserve Fund finances the public works programme, land acquisitions, capital subventions, major systems and equipment items, and computerisation. On May 27, 1985, when the Sino-British Joint Declaration on the Question of Hong Kong came into effect, the fund was restructured to enable the premium income from land transactions to be accounted for in accordance with the arrangements set out in Annex III to the Joint Declaration. The income of the fund is derived mainly from land premiums and appropriations from the General Revenue Account.
The Capital Investment Fund finances the government's capital investments (mainly in statutory public bodies), such as equity injections in the Airport Authority and the Mass Transit Railway Corporation, and capital investments in the Hong Kong Housing Authority. Its income is derived mainly from appropriations from the General Revenue Account and dividends.
The Civil Service Pension Reserve Fund acts as a reserve to meet payment of civil service pensions in the unlikely event that the government cannot meet such liabilities from the General Revenue Account. Its income is derived mainly from appropriations from the General Revenue Account and interest on investments.
The Disaster Relief Fund finances grants for humanitarian aid in the wake of disasters outside Hong Kong. Its income is derived mainly from appropriations from the General Revenue Account and interest on investments.
The Loan Fund finances schemes such as housing loans and student loans. Its income is derived mainly from appropriations from the General Revenue Account, loan repayments, and interest on loans.
The Lotteries Fund finances welfare services through grants and loans. Its income is derived mainly from the sharing of the proceeds of the popular Mark Six lotteries.
Management of the Budget
The government manages its finances against the background of a rolling five-year, medium-range forecast of expenditure and revenue. This provides a model for the consolidated financial position of the General Revenue Account and of all the funds except the Lotteries Fund.
The most important principle underlying the government's management of the public finance is that government expenditure, over time, should not grow faster than the economy as a whole. The Budget presented by the Financial Secretary to the Legislative Council each year is developed against the background of the medium- range forecast to ensure that full regard is given to this principle and to longer-term trends in the economy.
Public Expenditure
Public expenditure in 1995-96 totalled $191.3 billion. The government itself accounted for $161.6 billion, excluding equity injections to the Mass Transit Railway Corporation, the Airport Authority and other bodies. The growth rate over the preceding year was 15.3 per cent in nominal terms or 6.2 per cent in real terms. Some $52.6 billion, or 27.5 per cent of the public expenditure in 1995-96, was of a capital nature. An analysis of expenditure by function is at Appendix 9.
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THE ECONOMY
66
Public expenditure has remained comfortably below 20 per cent of the gross domestic product for the last decade. The growth rate of public expenditure is compared with the rate of economic growth at Appendix 11.
Total government revenue in 1995-96 amounted to $180 billion. The consolidated cash deficit for the year was $3.1 billion. Details of revenue by source and of expenditure by component for 1995-96 and 1996-97 (Revised Estimate) are at Appendix 12.
The draft estimates of expenditure on the General Revenue Account are presented by the Financial Secretary to the Legislative Council when he delivers his annual Budget speech. In the Appropriation Bill introduced to the Legislative Council at the same time, the administration seeks appropriation of the total estimated expenditure on the General Revenue Account.
The estimates of expenditure contain details of the estimated recurrent and capital expenditure of all government departments, including estimates of payments to be made to subvented organisations and estimates of transfers to be made to the statutory funds.
The government's consolidated account recorded a deficit of $3.1 billion in 1995-96, after a continuous string of consolidated surpluses in the previous 11 years. The accumulated surpluses at the end of 1995-96 stood at $147.9 billion. These surpluses form the government's fiscal reserves and are available to meet any calls on its contingent liabilities and enable it to cope with any short-term fluctuations in expenditure relative to revenue.
The Urban Council and Regional Council, which operate through the Urban Services Department and Regional Services Department respectively, are financially autonomous. They draw up their own budgets and expenditure priorities. The expenditures of the two councils are financed mainly from a fixed percentage of the rates from property in the Urban Council area (Hong Kong, Kowloon and New Kowloon) and in the Regional Council area (New Territories). Additional income is derived from fees and charges for the services the councils provide.
The Hong Kong Housing Authority, operating through the Housing Department, is also financially autonomous. The government provides the authority with capital and land on concessionary terms to build public housing for rent and for sale. Part of the authority's recurrent expenditure, for clearances and squatter control, is financed from the General Revenue Account.
A trading fund is a department or part of one providing services on a commercial or quasi-commercial basis through the operation of a separate accounting system. Unlike a vote-funded department, trading funds are allowed to retain revenue generated to meet expenditure in providing the services and to finance future expansion.
Government Supplies Department
Purchases of goods and related services required by government departments are undertaken centrally by the Government Supplies Department, which provides similar services to certain non-government organisations, such as the Hospital Authority and the Vocational Training Council. These goods and related services are normally obtained by competitive tendering, without giving preference to any
THE ECONOMY
particular source of supply, to ensure that users' needs are met at the best possible price, having regard to life-time cost and reliability of supply. Helping users to derive the best value in their purchases, the department formulates a specific strategy for each type of purchase based on market conditions, focusing on meeting requirements for high-value and critical items by cost-effective and reliable means.
Depending on circumstances, open, restricted or single-tenders are issued for the purchase of required supplies. Single tenders are used mainly for the purchase of patented items or for compatibility with existing equipment. Tender invitations are published in the Government Gazette and four local newspapers and are mailed to suppliers registered with the department. All purchases valued at more than $1.41 million are open to competitive bidding internationally. To allow easy access by overseas suppliers, the department has, since November 1995, included its tender invitations and related information on the World Wide Web. In 1995-96, the department placed orders of a total value of $4.65 billion, purchasing from 37 different countries. The major sources of supply were the USA, the UK, China, Germany, Japan and Hong Kong. Major items of purchase included computer systems, medical supplies and equipment, water pipes, electrical appliances, telecommunication equipment and services, and food provisions.
Supplies of goods to meet general needs are held in the department's new, purpose- built warehouse in Chai Wan, which was put into operation in late 1996 to replace two older warehouses in North Point and Cheung Sha Wan. The department also seconds supplies staff to other departments to ensure a professional approach to acquisition and maintenance of stores and equipment.
Revenue Sources
Hong Kong's tax system is simple and relatively inexpensive to administer. Tax rates are low, and the government accords a high priority to curbing tax evasion and minimising tax avoidance. The major sources of revenue are profits tax and salaries tax. Other significant sources include stamp duty on property and stock transactions, betting duty, duties on certain specified commodities and rates on property. (For major sources of revenue, see Appendix 13).
The Inland Revenue Department collects over 50 per cent of total revenue, including earnings and profits tax, stamp duty, betting duty, estate duty and hotel accommodation tax.
Earnings and profits tax, which alone accounted for about 43 per cent of total revenue in 1995-96, is levied under the Inland Revenue Ordinance. Persons liable to this tax may be assessed on three separate and distinct sources of income: business profits, salaries and income from property.
Profits tax is charged only on net profits arising in Hong Kong, or derived from a trade, profession or business carried on in Hong Kong. Profits of unincorporated businesses are currently taxed at 15 per cent and profits of corporations are taxed at 16.5 per cent. Tax is payable on the actual profits for the year of assessment.
Profits tax is paid initially on the basis of profits made in the year preceding the year of assessment and is subsequently adjusted according to profits actually made in the assessment year. Generally, all expenses incurred in the production of assessable profits are deductible. There is no withholding tax on dividends paid by corporations, and dividends received from corporations are exempt from profits tax. In 1995-96,
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THE ECONOMY
68
the government received about $47 billion in profits tax, or about 26 per cent of total
revenue.
Salaries tax is charged on emoluments arising in, or derived from, Hong Kong. The basis of assessment and method of payment are similar to the system for profits tax. Tax payable is calculated on a sliding scale which in 1996 progressed from 2 per cent on the first segment of net income (that is, income after deduction of allowances) of $20,000, to 9 per cent and 17 per cent on the second and third segments of $30,000 each, respectively, and then to 20 per cent on the remaining net income. No one, however, pays more than 15 per cent of total income. The earnings of husbands and wives are reported and assessed separately. However, where either spouse has allowances that exceed his or her income, or when separate assessments would result in an increase in salaries tax payable by the couple, they may elect to be assessed jointly. Salaries tax contributed some $26 billion, or about 15 per cent of total revenue, in 1995-96. Due to generous personal allowances under Hong Kong tax law, about 53 per cent of the territory's workforce has no salaries tax liability at all.
Owners of land or buildings in Hong Kong are charged property tax at the standard rate of 15 per cent of the actual rent received, less an allowance of 20 per cent for repairs and maintenance. There is a system of provisional payment of tax similar to that for profits tax and salaries tax. Property owned by a corporation carrying on a business in Hong Kong is exempt from property tax (but profits derived from ownership are chargeable to profits tax). Receipts from property tax totalled about $1.6 billion in 1995-96.
The Stamp Duty Ordinance imposes fixed and ad valorem duties on different classes of documents relating to assignments of immovable property, leases and share transfers. The revenue from stamp duties accounted for about 6 per cent of total revenue, or about $11 billion, in 1995-96.
A duty is imposed on bets at the Hong Kong Jockey Club and on the proceeds of Mark Six lotteries the only legal forms of betting in Hong Kong. The rate of duty is 12 per cent or 18 per cent of the amount of the bet (depending on the type of bet placed) and 20 per cent on the proceeds of lotteries. The yield in 1995-96 totalled some $11 billion, accounting for about 6 per cent of total revenue.
Estate duty is imposed on estates valued at over $6.5 million, at levels ranging from 6 per cent to a maximum of 18 per cent, while a hotel accommodation tax of 5 per cent is imposed on expenditure on accommodation by guests in hotels and guest- houses.
The Customs and Excise Department collects and protects duty revenue. The Dutiable Commodities Ordinance imposes controls on
on the import, export, manufacture, sale and storage of dutiable items. Duties are levied on four categories of commodities - hydrocarbon oil, alcoholic beverages, methyl alcohol and tobacco. Duties are imposed irrespective of whether the product concerned is locally manufactured or imported. There is no discrimination on the grounds of geographic origin. In 1995-96, $7.9 billion was collected in duties, accounting for about 4 per cent of total revenue.
The Rating and Valuation Department is responsible for the assessment and billing of rates, which are levied on landed properties at a fixed percentage of their rateable value. The revenue raised helps to finance the various public services provided by the
THE ECONOMY
government, the Urban Council and the Regional Council, as well as providing a stable and reliable revenue stream for the government.
The rateable value is an estimate of the annual rent at which a property might be expected to be let, as at a designated date, and general revaluations are conducted at intervals to keep rateable values up-to-date. During the year, the government prepared new lists of rateable values to take effect on April 1, 1997. These rateable values reflect rental values at July 1, 1996.
The rates percentage charge is fixed by the Legislative Council in accordance with the financial requirements of the government, the Urban Council and the Regional Council. For 1995-96, it was fixed at 5.5 per cent.
In 1995-96, the number of assessments in the Valuation Lists at the year's end stood at about 1 474 000, and the total revenue from rates was $14.6 billion. Of this amount, $5.2 billion, collected from Hong Kong Island and Kowloon, was credited to the Urban Council and $3.46 billion, collected from the New Territories, went to the Regional Council. The remainder, amounting to $5.8 billion, was credited to the government's General Revenue Account, accounting for about 3 per cent of the total
revenue.
The government derives significant amounts of revenue from other sources. Fees and charges for services provided by government departments generated a total of about $9.9 billion, or about 6 per cent of total revenue, in 1995-96. It is government policy that fees should in general be set at levels sufficient to recover the full cost of providing the goods and services. Certain essential services are, however, subsidised by the government or provided free.
Also, in 1995-96, the government collected $8.7 billion, amounting to about 5 per cent of the total revenue, from investments and rents from government properties. A further $7.2 billion was generated by government-operated public utilities, accounting for about 4 per cent of the total revenue. The most important of these, in revenue terms, are waterworks and the airport.
In addition, some $19.4 billion, or about 11 per cent of the total revenue in 1995- 96, was generated by land sales. Since implementation of Annex III to the Joint Declaration, revenue from land transactions decided upon before the coming into force of the Joint Declaration, and from those conferring a benefit that expires on or before June 30, 1997, (amounting to $418 million in 1995-96), has been credited to the General Revenue Account. All revenue from other land transactions is credited to the Suspense Account of the Capital Works Reserve Fund, pending sharing with the future Hong Kong Special Administrative Region Government as provided for under Annex III. The sharing arrangements in 1995-96 resulted in the transfer of $19 billion to the Works Account of the Capital Works Reserve Fund and $17 billion to the future Hong Kong Special Administrative Region Government's Land Fund.
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6 FINANCIAL AND
MONETARY AFFAIRS
70
HONG KONG's financial sector comprises an integrated network of institutions and markets which, under a market-friendly form of regulation, provide a wide range of products and services to local and international customers and investors.
Some 368 authorised institutions and local representative offices of banks from more than 40 countries conduct business under the Banking Ordinance. The presence of 80 of the world's top 100 banks has helped promote the territory as an inter- national financial centre. The banking sector's external assets are among the highest in the world. Hong Kong was the fifth-largest centre for foreign exchange trading in 1996, up from sixth in 1992, according to a global survey conducted by the Bank for International Settlements (BIS).
Hong Kong's stock market is the second-largest in Asia after Tokyo and the tenth- largest in the world. Buoyed by the bullish performance of the world's major stock markets, the Hang Seng Index closed higher at the end of the year. The closing index of 13 451.45 was 34.42 per cent higher than a year earlier.
In 1996, Hong Kong took further steps to improve the transparency of the banking sector. Further financial disclosure packages were developed. A Code of Banking Practice, which aims to improve the standard and transparency in the provision of banking services, also was developed.
A mortgage corporation to be initially owned by the government through the Exchange Fund with a capital base of $1 billion will be established in 1997. The decision to go ahead was made following a consultation exercise by the Hong Kong Monetary Authority (HKMA) that ended in mid-June. The establishment of a mortgage corporation will help promote banking and monetary stability and facilitate the development of a secondary mortgage market in Hong Kong.
To maintain and enhance Hong Kong's status as an international financial centre, the HKMA has worked closely with the banking community to develop an efficient and robust payment system in Hong Kong. In December, Hong Kong's interbank payment system moved to Real Time Gross Settlement under which settlement risks in the banking system has been considerably reduced.
The HKMA became a shareholder and member of BIS in November 1996. The invitation to join the BIS is a clear recognition of Hong Kong's status as a leading and autonomous international financial centre and Hong Kong's increasingly active role in co-operation among central banks. The fact that the People's Bank of China, China's central bank, was separately invited to join the BIS shows that the
FINANCIAL AND MONETARY AFFAIRS
international financial community is fully supportive of the 'one country, two systems' policy enshrined in the Basic Law.
Financial Institutions
―
are
Hong Kong maintains a three-tier system of deposit-taking institutions - licensed banks, restricted licence banks and deposit-taking companies which collectively called authorised institutions under the Banking Ordinance. The HKMA is the licensing authority for all three types of authorised institutions.
The authorisation criteria for locally-incorporated applicants and overseas applicants for a banking licence are broadly the same. However, a local applicant incorporated in Hong Kong must, in the opinion of the HKMA, be closely associated and identified with Hong Kong. A local applicant must also have a paid-up capital of at least $150 million and a minimum trading period of 10 years as an authorised institution. The minimum requirements for assets (net of contra items) and public deposits are $4 billion and $3 billion, respectively. For banks incorporated outside Hong Kong applying to establish a branch in the territory, the figure for total assets is US$16 billion. A licence may still be granted even if the asset test is not met, provided that the HKMA believes that this would help to promote the interests of Hong Kong as an international financial centre.
Hong Kong imposes no major barriers on overseas banks operating domestically in the territory, whether in Hong Kong dollars or other currencies. However, overseas banks licensed since 1978 are effectively restricted to one branch, a measure designed to avoid overcrowding in retail banking. This restriction was relaxed in September 1994, and foreign banks are now allowed to open one regional office and one back office, in separate buildings, to conduct such activities as strategic planning, general liaison with correspondent banks and corporate entities, and processing and settlement of transactions already entered into by the branch office. This was done to help foreign banks reduce their operating costs by letting them move some of their operations to areas with lower rentals. The relaxation also applies to foreign restricted licence banks.
Hong Kong had 182 licensed banks at the end of December 1996, of which 31 were. locally incorporated. They maintained a total of 1 476 offices in the territory and there were 157 representative offices of foreign banks. The total deposit liabilities of all the licensed banks to customers at the end of December 1996 were $2,375 billion. Only licensed banks may operate current or savings accounts. They may also accept deposits of any size and any maturity from the public. All licensed banks must belong to the Hong Kong Association of Banks (HKAB). The HKAB's Interest Rate Rules set maximum rates payable on Hong Kong dollar savings deposits and time deposits of original maturities of less than seven days, with the exception of deposits of $500,000 or above, for which banks may compete freely.
Applicants for restricted bank licences must have a minimum issued and paid-up capital of $100 million. Restricted licence banks may take call, notice and time deposits of any maturity from the public, but in amounts of not less than $500,000. There are no restrictions on the interest rates they may offer. At the end of December 1996, there were 62 restricted licence banks and their total deposit liabilities to customers at the end of December 1996 were $42.9 billion.
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FINANCIAL AND MONETARY AFFAIRS
Restricted licence banks may use the word 'bank' in describing their business in promotional literature and advertisements, but this must be qualified by a description such as 'restricted licence', 'merchant', 'investment' or 'wholesale'. To avoid confusion with licensed banks, descriptions such as 'retail' or 'commercial' are not allowed. Overseas banks seeking authorisation as restricted licence banks may operate in branch or subsidiary form. If in branch form, they may use their registered name even if it includes the word 'bank' or a derivative, but in this case it must be qualified prominently by the words 'restricted licence bank' in immediate conjunction.
Besides the criteria which apply to other authorised institutions, registration of deposit-taking companies will generally be granted only to companies that are 50 per cent or more owned by a bank (or, exceptionally, by another fully supervised financial institution). Deposit-taking companies are required to have a minimum paid-up capital of $25 million. They are restricted to taking deposits of not less than $100,000, with a term of maturity of at least three months. At the end of December 1996, there were 124 deposit-taking companies, with total deposit liabilities to customers of $15.5 billion.
Dealers in securities, investment advisers, commodity dealers and commodity- trading advisers, leveraged foreign exchange traders and their representatives have to register with the Securities and Futures Commission (SFC). To obtain registration, they must comply with the requirements stipulated in the Securities Ordinance, the Commodities Trading Ordinance, the Leveraged Foreign Exchange Trading Ordinance, and the Securities and Futures Commission Ordinance. At the end of 1996, there were 17 892 registered persons. Of the 715 registered corporate securities dealers, 241 were from overseas. Of the 474 commodities dealers, 78 were from
overseas.
Only members of the Stock Exchange Hong Kong Ltd (SEHK) may trade on the stock exchange. At the end of 1996, the stock exchange had 563 corporate and individual members. Only shareholders who have applied for and been granted membership of the Hong Kong Futures Exchange Limited (HKFE) can trade on the futures exchange. At the end of 1996, the HKFE had 134 members.
Under the Insurance Companies Ordinance, insurance companies are authorised by the Insurance Authority to transact business in Hong Kong. At the end of 1996, there were 223 authorised companies. Of these, 123 were overseas companies from 28 countries.
Regulation of the Financial Sector
The government has consistently worked towards providing a favourable environment in the financial sector, with adequate regulation to ensure, as far as possible, sound business standards and confidence in the institutional framework, but without unnecessary impediments of a bureaucratic or fiscal nature.
Authority for the prudential supervision of banks, restricted licence banks and deposit-taking companies is vested in the HKMA. Its authority is derived from the Banking Ordinance, the provisions of which relate to the supervision of authorised institutions. The main objectives of the ordinance are to provide a measure of protection to depositors and to promote the general stability and effective operation of the banking system.
聖食
AED SISUKA KUNG MINS,
|Lights blaze out on both sides of the harbour in an
annual extravaganza that brightens Christmas and the
Lunar New Year from Tsim Sha Tsui (left) to Central (below).
11111
The East Tsim Sha Tsui promenade has become a favourite spot for designers to create fantasies in light. RIGHT: The air is rich with pine scent inside major shopping malls over Christmas, such as in this scene at Pacific Place. BELOW, RIGHT: The display at Harbour City, near the Star Ferry's Kowloon-side pier, draws thousands of viewers each year.
KAMER
SONO
SON BLAZA 26
T
HARBOUR
· Christmas carollers from United Evangelical Mission Tsuen Shing Church entertain crowds at a public housing estate in Tsuen Wan. BELOW: Santa sails into the celebration season in a cheery reference to Hong Kong's 1996 Olympic Games gold medal winner, Lee Lai-shan.
H.K
નાં
FINANCIAL AND MONETARY AFFAIRS
The supervisory approach of the HKMA is based on a policy of 'continuous supervision'. This involves the on-going monitoring of authorised institutions using a wide variety of techniques which are aimed at detecting any problems at an early stage. Consolidated supervision is exercised by the HKMA on a global basis over institutions which are incorporated in Hong Kong.
Prudential supervision in Hong Kong is carried out mainly through on-site examinations, off-site reviews and prudential meetings. On-site examinations provide the HKMA with the opportunity to assess at first hand how an institution is managed and controlled. They are particularly useful for assessing asset quality and the adequacy of internal controls. Off-site reviews involve the analysis of regular statistical returns, and accounting and other management information supplied by institutions, with a view to assessing their performance and compliance with the Banking Ordinance. They are followed by prudential interviews with the senior management of the institutions, at which the business, prospects and potential areas of concern of institutions are discussed. This approach enhances the HKMA's ability to identify potential areas of concern, which can be followed up by on-site examinations.
As an international financial centre, Hong Kong follows banking supervisory policies that are in line with international standards, especially those recommended by the Basle Committee on Banking Supervision. The Basle Committee issued proposals for the supervision of market risks in 1995. Market risk is defined as the risk of loss in on- and off-balance sheet transactions arising from movements in market prices. It covers transactions relating to foreign exchange, interest rates, equities and commodities.
The HKMA is considering how and when a market risk supervisory framework should be implemented in Hong Kong. The local framework will be based on the Basle proposals but will take into account the generally low level of exposure to market risks of local authorised institutions. The latter has been confirmed in a survey on market risk based on the Basle framework conducted by the HKMA in April/May 1996. To start the implementation of the local market risk supervisory regime, locally incorporated institutions have been required to report to the HKMA on a regular basis their market risk exposures since the end of 1996. The Basle Committee continues to develop an agreed common framework for measuring interest rate risk by international supervisors. The HKMA will continue to monitor developments on this issue.
In view of the fast-growing derivatives market, the HKMA strengthened its supervisory efforts in this area. Since 1995, it has conducted a survey of risk management practices of derivatives participants, conducted a series of treasury visits to authorised institutions on derivatives activities and strengthened the staff resources of a specialist team with the recruitment of additional expertise on derivatives products and financial models.
The HKMA also required all authorised institutions which engage in the trading of derivatives to perform a review of their internal controls and to report their findings to the authority subsequent to the Baring's crisis. Where weaknesses have been identified, the HKMA has asked institutions concerned to take immediate action to eliminate them. Further to a guideline issued to authorised institutions on risk management for derivatives in 1994, the HKMA issued in March 1996 an operational
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FINANCIAL AND MONETARY AFFAIRS
74
guideline on risk management of derivatives and other traded instruments, incorporating the lessons learned from its reviews and examination of controls during 1995 and the Baring's and Daiwa Bank incidents.
In 1996, Hong Kong took further steps to improve the transparency of financial reporting by the authorised institutions. Discussion continued between the HKMA, the SEHK and the SFC and further recommendations for disclosure in the 1996 accounts of authorised institutions were issued, including the disclosure of cash flow statement and market risk exposure.
The HKMA formed a Working Group in January 1996 comprising representatives from the HKMA and the industry associations to develop a Code of Banking Practice in Hong Kong. Its purpose is to improve the standard and transparency in the provision of banking services, establish a fair and cordial relationship between banks and customers, and enhance banking stability by fostering customer confidence and loyalty in banks. In view of the public concern on the issues of personal referees and the use of debt collection agencies, the chapters on these two issues were released in August 1996 and the full Code would be ready for issue in the first half of 1997. Pursuant to the Memorandum of Understanding signed between the HKMA and the SFC in October 1995, the two authorities continued to strengthen co-operation to ensure that there will be no gaps in regulation and to minimise unnecessary duplication of effort in their supervision. Regular meetings were held between the two authorities to discuss policy matters and supervisory issues relating to institutions in which they both have an interest.
Hong Kong is a member of the Financial Action Task Force (FATF), an international organisation comprising 26 governments with a mandate to encourage international efforts in the fight against money-laundering. To help combat money- laundering, a guideline on the prevention of the criminal use of the banking system for the purposes of money-laundering was issued in 1989 by the then-Commissioner of Banking. The HKMA has revised guidelines to take into account the revised Forty Recommendations of the FATF and the amendments to the money-laundering legislation. The Organised and Serious Crimes Ordinance, which was enacted in October 1994, has extended the money-laundering offence to all indictable offences. In addition, the enactment of amendment legislation in August 1995 has made the reporting of suspicions of money-laundering transactions a statutory obligation.
In December 1996, the Legislative Council was preparing to enact the Banking (Amendment) Ordinance, which introduces a legal framework for the regulation of the issue of multi-purpose stored value cards and money brokers. On multi-purpose cards, the framework provides that the issue of general purpose multi-purpose cards will be confined to licensed banks (which are the only entities having access to the payment system). Flexibility is, however, allowed for the Monetary Authority to approve a special purpose vehicle (which may be authorised as a deposit-taking company) whose principal business is to issue multi-purpose cards which would have a more restricted usage or to exempt cards where the usage is even more limited and the stored value is below a certain limit.
On money brokers, the framework prohibits any person from acting as a money broker unless he is approved by the Monetary Authority under the Banking Ordinance. The Monetary Authority would be empowered to approve or revoke the approval of a broker on the basis of a set of fit and proper criteria specified in a
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schedule to the Ordinance. The main approval criteria include fitness and propriety of the management, financial soundness, prudent conduct and adequacy of accounting and control systems.
The SFC was established in 1989 after the October 1987 world stock market crash. It exercises prudential supervision over the securities, financial investment and commodities futures industry in Hong Kong. It administers the Securities and Futures Commission Ordinance, all securities and futures-related ordinances, and part of the Companies Ordinance in so far as it relates to prospectuses and purchases by a company of its own shares.
The Securities Ordinance, the Stock Exchange Unification Ordinance, together with the Securities and Futures Commission Ordinance, provide a framework within which dealings in securities are conducted and regulated. They require the registration of dealers, dealing partnerships, investment advisers and other intermediaries. They also provide for the investigation of suspected malpractices in securities transactions and the maintenance of a fund to compensate clients of defaulting brokers.
The Protection of Investors Ordinance prohibits the use of fraudulent or reckless means to induce investors to buy or sell securities, or to induce them to take part in any investment arrangement in respect of property other than securities. It regulates the issue of publications relating to such investments by prohibiting any advertisement inviting investors to invest without the advertisement first being submitted to the commission for authorisation.
The Commodities Trading Ordinance and the Securities and Futures Commission Ordinance provide a regulatory framework within which futures dealers, commodity trading advisors and representatives conduct their business. It includes provisions for the registration of futures dealers and their representatives and the maintenance of a compensation fund to compensate clients of defaulting commodity dealers.
The Securities (Clearing Houses) Ordinance provides for the recognition of clearing houses and approval of clearing house rules by the SFC, and makes certain exceptions to insolvency law in relation to a clearing house and its role in guaranteeing the settlement of market transactions.
The Insider Dealing Tribunal is an important feature of the regulatory framework in Hong Kong. It was established under the Securities (Insider Dealing) Ordinance to look into cases involving suspected insider dealing referred to it by the Financial Secretary. Since it began operation in 1994, the tribunal has successfully concluded four cases. A second division of the Insider Dealing Tribunal was set up in March 1996 so that two or more cases can be dealt with concurrently.
The Securities (Disclosure of Interests) Ordinance requires company shareholders with 10 per cent or more of the voting shares of a listed company to disclose their interests and dealings publicly, and directors and executives to disclose certain dealings.
The Leveraged Foreign Exchange Trading Ordinance provides for the regulation, by the SFC, of the retail end of leveraged foreign exchange trading where an investor buys or sells foreign currencies by putting up a small percentage of the full value of the contract, settlement being made with reference to differences in exchange rates rather than actual delivery. Regulation of the market is effected through the licensing,
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by the SFC, of leveraged foreign exchange traders and their representatives, who are required to fulfil 'fit and proper persons' criteria. The ordinance also provides for the investigation of suspected trading malpractices, supplemented by rules governing arbitration, conduct of business, maintenance of financial resources, accounts and audit, contract notes and appeal procedures.
In September 1996, the SFC issued for public consultation a review of the ordinance in light of experience gained during its initial phase of implementation. By the end of 1996, the SFC had issued 24 foreign exchange trader licences as well as 1 042 licences for their representatives.
In April 1996, the SFC issued for public consultation a draft of a composite Securities and Futures Bill. It seeks to consolidate and streamline the existing laws governing the securities and futures markets, which are currently spread over some 11 ordinances and parts of the Companies Ordinance
The Office of the Commissioner of Insurance exercises prudential supervision over the insurance industry in Hong Kong. It administers the Insurance Companies Ordinance, which brings all classes of insurance business under a comprehensive system of regulation and control by the Commissioner of Insurance (Insurance Authority).
To protect the interests of policy holders, the ordinance stipulates minimum share capital and solvency requirements for all authorised insurers and requires them to submit periodic financial statements and other relevant information to the authority. It provides that any person who is not considered by the authority fit and proper to be associated with an authorised insurance company cannot acquire a position of influence in relation to such a company. It also empowers the authority to intervene in the conduct of the business of insurance companies in circumstances where the authority has cause for concern. The authority may take remedial or precautionary measures to safeguard the interests of policy holders and claimants, including limitation of premium income, restriction of new business, placing of assets in custody and petitioning for the winding-up of the company concerned.
A general business insurer must maintain assets in Hong Kong sufficient to meet the amount of the legitimate claims of Hong Kong policy holders in the event of the insurer's insolvency, particularly when it is involved in cross-border insolvency proceedings. Life insurers have to maintain a solvency margin which relates to the risk base of the business.
During 1996, various legislative amendments were brought into effect to improve insurance regulation for the better protection of policy holders. Since June 1996, the minimum capital and solvency margin requirements for insurers have been updated to ensure that they will have sufficient financial resources to pre-finance their operations and to meet the claims of the insuring public. The use of the word 'insurance' or 'assurance' in business names will also be restricted to persons regulated under the Insurance Companies Ordinance with effect from late 1997 in order to prevent the public from being misled.
Self-regulatory measures to strengthen professional discipline in the insurance market have been formulated by the insurance industry, after consultation with the government. The measures involve the adoption by the industry of two Statements of Insurance Practice governing the writing of insurance contracts of long-term and general insurance business, and the establishment of an Insurance Claims Complaints
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Bureau, which provides an independent avenue for resolving claim disputes arising from personal insurance policies.
Enabling legislation came into force in June 1995 to support the self-regulatory system, under which no person is permitted to act as an insurance intermediary unless he is a registered insurance agent or an authorised insurance broker. Insurance companies are required by law to comply with the Code of Practice for the Administration of Insurance Agents in registering and controlling their agents. An insurance broker must satisfy certain minimum requirements before he can be authorised. The purpose of the self-regulatory system is to enhance the professionalism of the industry which in turn will benefit Hong Kong as a developing international insurance centre.
The Occupational Retirement Schemes Ordinance provides a registration system for voluntarily established occupational retirement schemes. The Commissioner of Insurance, as Registrar of Occupational Retirement Schemes, is responsible for the regulation of private sector retirement schemes. The objective of the ordinance is to provide greater certainty that retirement scheme benefits promised to employees will be paid when they fall due. The ordinance requires all schemes operating in or from Hong Kong to be either registered with, or exempted by, the Registrar.
All registered schemes must meet certain basic requirements, including asset separation (the assets of a scheme must be kept separate and distinct from the assets of the employer or the scheme administrator); independent trusteeship (there should be at least one independent trustee who must not be the employer, his employee or his associate); restricted investments (any loan to the employer of the scheme or his associate out of the scheme's assets is prohibited, as is any excessive investment in the business undertaking of the employer); funding (the assets of the scheme must be sufficient to meet its aggregate vested and past service liabilities and the scheme shall be funded in accordance with the terms of the scheme); independent audit; actuarial reviews (for defined benefit schemes); and the submission of annual financial statements to the Registrar. There are also requirements for disclosure of information regarding the operation of the scheme to its members.
By the end of 1996, 14 923 schemes covering a total of more than 830 000 employees were registered, and 1 859 schemes were exempted.
Mandatory Provident Fund Schemes
After the enactment of the Mandatory Provident Fund Schemes Ordinance in August 1995, the government began to prepare the subsidiary legislation necessary for bringing the ordinance into effect. It provides the framework for a privately managed mandatory provident fund (MPF) system that will cover members of the workforce aged 18 and above. It will provide for joint contributions by the employer and employee, each contributing 5 per cent of the employee's income to a registered trust scheme managed by approved MPF trustees. The accrued benefits will be fully vested in the scheme members and can be transferred from scheme to scheme when employees change or cease employment. A self-employed person will have to contribute 5 per cent of his income. Benefits must be preserved until retirement.
In February 1996, the Mandatory Provident Fund Office was set up under the Financial Services Branch with the special responsibility for developing the draft subsidiary legislation. The government has also established a formal advisory
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structure comprising a Panel of Specialists and an Advisory Board with a view to ensuring that the MPF System will be effective in serving the best interest of the community. Panel members, working in six specialist groups, offer expert advice on technical matters and the advisory board provides advice on policy and strategic issues.
The government's policy is to achieve a high degree of security of retirement protection through an effective system of prudential regulation and supervision. During 1996, the MPF office made good progress in developing detailed proposals for the regulations and rules to be promulgated. Proposals were finalised on major issues, including the registration of schemes, standards for and operation of the registered schemes, the regulation and supervision of MPF approved trustees, the setting of investment standards and guidelines, and interface arrangements for existing voluntarily established occupational retirement schemes. In the process, the MPF office consulted interested parties including employer groups, labour unions and other organisations on relevant subjects in the proposed system. The target is to complete the draft subsidiary legislation in early 1997.
The Securities and Futures Commission
The SFC was established in May 1989 under the Securities and Futures Commission Ordinance. The SFC took over the functions of the former Securities Commission, the Commodities Trading Commission and the Office of the Commissioner for Securities and Commodities Trading.
The SFC is an autonomous statutory body outside the civil service. It has 10 directors (half of them executive) who are appointed by the Governor of Hong Kong. The commission is required to present the Financial Secretary an annual report and an audited statement of its accounts, which are laid before the Legislative Council. The commission seeks advice on policy matters from the SFC Advisory Committee, the 12 independent members of which are appointed by the Governor and are broadly representative of market participants and relevant professions. SFC decisions relating to matters concerning the registration of persons and intervention in their business are subject to appeal to the Securities and Futures Appeals Panel, the members of which are independently appointed by the Governor.
The SFC is funded largely by the market and partly by the government, although no funding has been sought from the latter in the past four years. The market contribution is in the form of fees and charges for specific services and functions performed, plus a statutory levy on transactions recorded on the stock and futures exchanges. Its budget for 1996-97 was $266 million and it had an establishment of 256 at the year's end.
The SFC has developed a framework of securities and futures regulation that brings Hong Kong into line with internationally-accepted standards. In addition, the SFC has published various codes of conduct and guidelines regulating market conduct and criteria for approval of investment products and licensing of market intermediaries.
Securities transactions on the stock exchange are executed by the Automatic Order Matching and Execution System. In January 1996, SEHK members commenced trading via a second terminal located in their own offices which supplements those terminals already available on the trading floor. It has greatly enhanced order entry
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and trade confirmation efficiency and has further expanded the availability of audit trails.
The Hong Kong Securities Clearing Company operates the Central Clearing and Settlement System (CCASS), which is one of the most important reforms to the risk management system introduced after the 1987 market crash. The CCASS is an automated book-entry system that handles the settlement of securities.
Hong Kong as an International Financial Centre
Hong Kong's favourable geographical position, bridging the time gap between North America and Europe, together with strong links with China and other economies in South-East Asia and excellent communications with the rest of the world, have helped the territory to develop into an important international financial centre. The absence of any restrictions on capital flows into and out of the territory is also an important factor.
Hong Kong's financial markets are characterised by a generally high degree of liquidity and operate under effective and transparent regulations which meet international standards. The educated work force and the ease of entry for professional expatriate staff further contribute to the development of financial markets in Hong Kong.
Hong Kong has a very strong presence of international financial institutions. At the end of the year, there were 166 foreign-owned banks. Of the world's top 100 banks in terms of monetary assets, 80 have operations in the territory. In addition, 168 subsidiaries or related companies of banks operate as restricted-licence banks and deposit-taking companies, and 157 banks have representative offices.
Equally well established is the interbank money market. Wholesale deposits are traded actively both among local authorised institutions, and between local and overseas institutions, with an average daily turnover of $165 billion in 1996. The interbank money market is mainly for short-term money, with maturities ranging from overnight to 12 months, for both Hong Kong dollars and foreign currencies. The traditional lenders of Hong Kong dollars are mostly the locally-incorporated banks, while the major borrowers are foreign banks without a strong Hong Kong dollar deposit base. At the end of the year, the Hong Kong interbank market accounted for 19 per cent of the Hong Kong dollar liabilities of the banking sector.
The territory also has a mature and active foreign exchange market, which forms an integral part of the global market. The link with other overseas centres enables foreign exchange dealing to continue 24 hours a day around the world. Based on the latest survey co-ordinated by the BIS, the daily average foreign exchange turnover in Hong Kong in April 1995 was US$91 billion, which represented six per cent of the world total. Hong Kong overtook Switzerland to become the fifth-largest in the world.
Hong Kong's derivatives market is among Asia's largest, reflecting the increased sophistication of its financial markets. Currency derivatives contracts (including forwards, currency swaps, options and futures) registered an average daily turnover of US$56 billion in April 1995 and the outstanding contracts amounted to US$970 billion. Interest rate derivatives recorded a turnover of US$18 billion per day and the
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outstanding contracts US$666 billion. Derivatives on stocks and commodities are less frequently used, with the outstanding amount at US$8 billion.
HKMA became a member of the BIS in November 1996. It offered the membership in recognition of the size of Hong Kong's financial markets and its contribution to the international monetary co-operation. As a member of the BIS, the HKMA will be able to participate more fully in BIS activities and policy discussions. Eight other central banks/monetary authorities were also offered membership of the BIS, including the People's Bank of China. The fact that both the HKMA and the People's Bank of China are invited to join the BIS clearly shows that the international financial community is supportive of the 'one country, two system' concept enshrined in the Joint Declaration and the Basic Law.
The local stock market was on a generally upward trend during 1996. The Hang Seng Index closed at 13 451.45 at the end of 1996, 34.42 per cent above the closing of 10 007.39 at the end of 1995. Average daily turnover in the local stock market was $5.67 billion in 1996, compared with $3.3 billion in 1995.
At the end of the year, 583 public companies were listed on the SEHK. With a total market capitalisation of $3,476 billion, the Hong Kong stock market ranked eighth in the world and second in Asia. The 49 newly-listed companies raised a total of $31.18 billion. Besides new share issues, funds were tapped through rights issues ($4.65 billion) and private placements ($38 billion).
The SEHK launched stock options contracts in respect of HSBC Holdings plc in September 1995. At the end of 1996, options contracts in respect of 11 other stocks had been launched. The futures exchange also traded in three currency futures and three stock futures contracts.
Hang Seng Index Options and Hang Seng Index Futures remained actively traded. Average daily turnover for index options increased from 2 614 contracts in 1995 to 4 393 in 1996. The volume of index futures trading averaged 18 699 contracts a day in 1996, compared with 18 407 contracts a day in 1995.
Hong Kong has an active gold market, in which the main participants are banks, major international bullion houses and gold trading companies. It is commonly known as the Loco-London gold market, with process quoted in US dollars per troy ounce of gold of 99.95 per cent fineness and with delivery in London. Trading in this market has expanded in recent years. The price of Loco-London gold moved between US$365.7 and US$417.7 in 1996. The price of gold fell from US$386.85 per troy ounce at the end of 1995 to US$367.8 per troy ounce at the end of the year.
The Chinese Gold and Silver Exchange Society operates one of the largest gold bullion markets in the world. Gold traded through the society is of 99 per cent fineness, weighted in taels (one tael equals approximately 1.2 troy ounces) and quoted in Hong Kong dollars. Prices closely follow those in the other major gold markets in London, Zurich and New York. The price of gold at the Chinese Gold and Silver Exchange Society exhibited movement similar to that of Loco-London gold. At the end of the year, gold cost $3,409 per tael compared with $3,569 at the end of 1995. Turnover on the exchange totalled 15 million taels in 1996.
The number of authorised unit trusts and mutual funds increased to 1 311 at the year's end, from 1 183 a year earlier.
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Increasing Financial Links Between Hong Kong and China
Hong Kong has been China's primary channel for international fund-raising. However, the cross-border capital flows have by no means been one-way. Direct investment and inter-bank fund flows in both directions have grown rapidly. Hong Kong banks have also stepped up their business activities in China.
Hong Kong has facilitated China's overseas fund-raising activities via Hong Kong's equity and debt markets. At the end of 1996, 23 Chinese state-owned enterprises were listed in Hong Kong through the issuance of H-shares, raising a total of more than $20.5 billion. Bonds issued by China's Ministry of Finance, the People's Construction Bank of China, and other major financial institutions are traded on Hong Kong's Stock Exchange.
Cross-border fund flows among financial institutions have also grown rapidly. Over the years, China has accumulated a substantial amount of funds in Hong Kong dollars from trading activities and inward investment. These funds are placed with financial institutions in China and subsequently channelled back to Hong Kong through the inter-bank market.
Since 1980, external liabilities of Hong Kong authorised institutions to financial institutions in China have grown at an average rate of over 40 per cent per annum to well over $250 billion by December 1996. Over the same period, claims on financial institutions in China by authorised institutions in Hong Kong registered an annual growth of almost 25 per cent to approach $300 billion.
Many banks from Hong Kong have expanded their businesses in mainland China. A total of 17 locally incorporated banks have established 29 branches and 28 representative offices there at the end of 1996.
Portfolio investment in the form of 'China funds' has also become increasingly popular. By the end of 1995, 19 such funds, amounting to some US$814.3 million, had been authorised by the SFC investing in B-shares listed on the Shanghai and Shenzhen stock exchanges as well as H-shares listed in Hong Kong.
Developments in Financial Infrastructure
To ensure that Hong Kong has an efficient and robust financial infrastructure, the HKMA and the banking community have been working closely to identify, minimise and, as far as possible, eliminate risk in Hong Kong's interbank payment system. With the benefit of studies conducted by central banking groups and advice from international experts, the HKMA concluded in early 1994 that the next-day net settlement system practised in Hong Kong fell short of the latest international standards and a move to move to Real Time Gross Settlement (RTGS) should be made as soon as possible.
The timetable provides for a phased implementation of RTGS starting in the first quarter of 1996 with full operation by the end of the year. The Hong Kong Interbank Clearing Limited (HKICL), jointly and equally owned by the HKMA and HKAB, was set up in May 1995 to take over in phases the Hong Kong dollar clearing facilities. from the Management Bank (the Hongkong and Shanghai Banking Corporation Ltd) of the HKAB Clearing House. This process started in August 1996 and will be completed in April 1997.
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The HKMA, HKAB and HKICL had an extremely busy year in getting the system and the banks ready for full implementation of RTGS in December 1996. This RTGS system is a single-tier settlement structure with all banks maintaining settlement accounts with the HKMA. All RTGS payments are settled in real time and are final, irrevocable and unconditional. The banks' settlement accounts are not allowed to go into overdraft and intraday liquidity, which is often the most difficult issue facing any RTGS system, can be obtained by the banks through the use of their Exchange Fund Bills and Notes for intraday 'repo' agreements with the HKMA.
The Central Moneymarkets Unit (CMU) Service, which was established in 1990 and operated by the HKMA to provide a clearing and custodian system for Exchange Fund Bills and Notes, was extended to cover private sector debt issues in 1994. It has recorded remarkable growth since then and 259 CMU members, which are mostly financial institutions in Hong Kong, participate in the system. There are 444 issues with a total value of $133.6 billion lodged with the CMU. Since 1994, a number of enhancements have been added to the CMU Service, such as the acceptance of foreign currency debt instruments and the introduction of end of day delivery against payment functionality for both Hong Kong dollar and foreign currency debt instrument.
The CMU system was fully integrated with the new interbank payment system when the latter went live on RTGS in December 1996. Delivery-versus-payment, both real time and end of day, became available. This matches international best practice in providing efficient, robust and risk-free clearing and settlement facilities for debt securities. It also enables the banks to obtain intraday liquidity through intraday 'repos' in a safe and efficient manner.
The CMU is linked to Euroclear and Cedel, the two largest international clearing systems in the world, in December 1994. These links, the first of their kind in East Asia, allow overseas investors and traders easy access to the Hong Kong dollar debt market.
The Hong Kong Dollar Debt Market
There have been impressive developments in the domestic debt market in recent years. The outstanding amount of Hong Kong dollar debt instruments stood at $281.4 billion as at end-1996, which was equivalent to about 23 per cent of the GDP. Exchange Fund Bills and Notes accounted for 33 per cent of the market while the rest consisted of private sector issues such as negotiable certificates of deposit, bonds, floating rate notes and asset-backed securities. Reflecting the increasing importance of the local debt market as a fund-raising avenue, $70.7 billion was raised through debt issues by the private sector during 1996.
The growth of the domestic debt market can be attributed partly to a combination of government initiatives and continued improvement in supply and demand conditions. The launch of the Exchange Fund Bills and Notes Programme in 1990 marked an important milestone in the development of the Hong Kong debt market. Government debt paper provides a benchmark yield against which private debt issues can be priced. From a weekly issue of 91-day bills, the programme was gradually expanded to include the fortnightly issue of 182-day bills in October 1990 and the issue of 364-day bills every four weeks in February 1991. The benchmark yield curve
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of Exchange Fund paper has further been extended with the subsequent introduction of the two-, three-, five- and seven-year Exchange Fund Notes in the past three years. A major development in the Exchange Fund Bills and Notes market in 1996 was the introduction of 10-year Exchange Fund Notes in October.
The tender results were very encouraging with an oversubscription rate of 13.52 times. The average accepted yield was 7.57 per cent, or about 92 basis points above that of the 10-year US Treasury Notes. In another development, four tap issues of 28- day Exchange Fund Bills were launched towards the end of 1996 to facilitate the liquidity management of banks in the initial stage of implementing the RTGS system. The total amount of outstanding Exchange Fund Bills and Notes increased to $92 billion at the end of 1996, compared with $59 billion at end-1995.
Exchange Fund Bills and Notes are one of the world's most actively traded government securities. The daily turnover in 1996 was $16 billion, representing 25 per cent of the entire amount outstanding. Contributing to the liquid secondary market is a market-making system under which 33 market makers are obliged to quote two-way prices.
To encourage the supply of high-quality debt issues in Hong Kong, profits tax exemption has been granted to the Hong Kong dollar debt securities issued by nine multilateral financial organisations such as the World Bank and the Asian Development Bank. To facilitate further the development of the local debt market, the government introduced in May 1996 a scheme under which the interest income and trading profits derived from eligible debt securities issued in Hong Kong enjoy a concessionary profits tax rate equal to 50 per cent of the profits tax rate.
Since 1994, the HKMA has broadened the scope of repo securities eligible for discounting under the Liquidity Adjustment Facility (LAF) to cover high quality Hong Kong dollar private debt issues (in addition to Exchange Fund Bills and Notes). At the end of 1996, 33 private debt issues totalling $60.1 billion qualified as LAF-eligible repo securities.
Development of a Secondary Mortgage Market
The secondary mortgage market in Hong Kong started to develop in 1994 when four issues of mortgage-backed securities (MBS) were launched. However, the market has been slow to evolve because of the heterogeneity and complexity of the MBS products, the prepayment risk and the lack of secondary market liquidity in the MBS issues.
At the suggestion of some private sector market participants, the HKMA conducted a study on the mortgage corporation proposal which concluded that the setting up of a mortgage corporation in Hong Kong was both feasible and beneficial in terms of promoting banking and monetary stability, the development of the local debt market and home ownership. It was also considered to be an effective way to kick-start the development of a secondary mortgage market.
In April 1996, the HKMA undertook a two-month public consultation on the mortgage corporation proposal. A wide spectrum of the community, including the banking sector, capital market participants and academics, indicated broad support for the mortgage corporation proposal. In July, the Exchange Fund Advisory Committee approved the setting up of the mortgage corporation, which would
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initially be wholly owned by the government through the Exchange Fund. Its business would be developed in two phases, starting with the issue of unsecured debt securities to finance the purchase of mortgage loans for its own portfolio, followed by the MBS issue. The corporation is expected to commence operation in the latter half of 1997.
The World Bank/International Monetary Fund Annual Meetings in 1997
Preparation work for the 1997 World Bank/International Monetary Fund Annual Meetings, which will be held in Hong Kong from September 23 to 25, is well under way. The steering committee chaired by the Financial Secretary has been overseeing the co-ordination of various planning areas and good progress has been made. The HKMA as the implementation agency of the 1997 Annual Meetings has solicited sponsorship from the banking sector and relevant organisations, both in kind and in cash, of more than $70 million.
Companies Registry
The Companies Registry administers and enforces certain sections of the Companies Ordinance. It incorporates local companies, registers overseas companies, registers documents required to be submitted by registered companies and provides facilities for the search of company records. It also administers and enforces several other ordinances including the Trustee Ordinance, as this relates to trust companies, the Registered Trustees Incorporation Ordinance and the Limited Partnerships Ordinance.
Since 1993, the Companies Registry has been operating as a trading fund department. Unlike a vote-funded department, the registry can keep part of its income and apply it flexibly, having regard to its needs, business turnover and its customers' demands and expectations. For the financial year to March 31, 1996, the Companies Registry Trading Fund managed to generate a surplus of $9.9 million, $8.8 million more than the budgeted surplus.
During the year, the registry continued to improve its working environment and services. By March 1996, the department had completed all its improvement programmes covering the public areas. The document registration area and the public search hall had been expanded and improved. These areas are now more spacious and provide far better facilities to the customers. Customer liaison officers, well experienced in company registration and company search matters, are now available to provide on-the-spot advice or assistance to customers.
One of the registry's long-term objectives is to provide direct on-line access to the records it maintains. In January 1996, as a first step towards achieving this goal, all the company names and company document indices were converted into a CD-ROM and made available to customers. By referring to this CD-ROM and its regular updates, customers are able to order company records remotely by facsimile transmission.
In addition, the registry commenced its data expansion project in the middle of 1996. Under this project, vital company information, such as details of directorships, capital structure, the registered addresses of companies and whether or not a company has any registered charges, will be recorded on the database maintained by
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the department. It is expected that this project will be completed towards the end of 1997. Once this expanded database is available, the registry can proceed to allow direct on-line access to its customers. Meanwhile, the department continues its search for a cost-effective alternative method of capturing, retaining and retrieving company information which can effectively replace the current use of microfilm. Although the latter is functionally effective and reliable, it is a labour-intensive mode of technology which can be neither updated nor accessed electronically.
The Standing Committee on Company Law Reform, established in 1984, continued to meet regularly to consider amendments to the Companies Ordinance, consistent with the needs of the public and the commercial sectors. An overall review of the Companies Ordinance by a specially appointed consultant continued during the year. The Companies (Amendment) Bill 1996 was introduced into the Legislative Council in April 1996. The principal purposes of the Bill were to abolish the doctrine of ultra vires in its application to companies and to empower the Registrar of Companies to specify forms necessary for the purposes of the Companies Ordinance. The opportunity was also taken to amend certain prescribed wording in the ordinance so as to provide for the appropriate Chinese equivalents. Upon enactment of the Bill into law as proposed, the old forms prescribed under the Companies Ordinance will be 'deregulated'. The Registrar will specify more user-friendly and bilingual forms to replace the old ones.
Under section 290A of the Companies Ordinance, the Registrar of Companies is empowered to de-register a company if it has, for two consecutive years or more, failed to submit its annual return. In order to remove defunct companies from the register and encourage companies to comply with the requirement to submit annual returns, the registry has, since March 1994, systematically examined companies on the register with a view to striking off those which have failed to comply with the provisions of section 290A. At the end of 1996, a total of 445 600 companies had been so examined, 81 117 had been identified for action under section 290A and 36 097 had been de-registered.
In 1996, 49 734 new companies were incorporated. On incorporation under the Companies Ordinance, a local company pays a registration fee of $1,310 and a lodgement fee to $270 plus $3 for every $1,000 of nominal capital. During the year the nominal capital of new companies registered totalled $6.24 billion and 7 415 companies had increased their nominal capital by amounts totalling $45.52 billion. At the end of the year, 483 181 local companies were on the register, compared with 471 883 in 1995.
Companies incorporated overseas must register certain documents with the registry within one month of establishing a place of business in the territory. A registration fee of $780 and some incidental filing fees are payable in such cases. During 1996, 665 of these were registered. At the end of the year, 4 604 companies were registered from 77 countries, including 1 121 from the British Virgin Islands, 800 from the USA, 423 from Bermuda, 402 from the UK, and 381 from Japan.
Money Lenders
Under the Money Lenders Ordinance, anyone wishing to carry on business as a money lender must apply to a licensing court for a licence. The ordinance does not apply to institutions authorised under the Banking Ordinance.
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Licence applications are, initially, submitted to the Registrar of Companies as Registrar of Money Lenders. A copy is also sent to the Commissioner of Police, who may object to the application. The application is advertised, and any member of the public who has an interest in the matter also has the right to object. During the year, 1 024 applications were received and 860 licences were granted. At the end of 1996, there were 1 018 licensed money lenders.
The ordinance provides severe penalties for statutory offences such as carrying on an unlicensed money-lending business. It also provides that any loan made by an unlicensed money lender shall not be recoverable by court action. With certain exceptions (primarily authorised institutions under the Banking Ordinance), any person, whether a licensed money lender or not, who lends or offers to lend money at an interest rate exceeding 60 per cent per annum commits an offence. Any agreement for the repayment of any such loan, or security given in respect of such a loan, is unenforceable.
Bankruptcies and Compulsory Winding-up
The Official Receiver's Office administers the estates of individual bankrupts and companies ordered to be compulsorily wound up by the High Court. Once a receiving order is made against the property of an individual debtor or a winding-up order against a company by the High Court, the Official Receiver becomes the interim receiver or provisional liquidator of the debtor or company, respectively. In most cases, the Official Receiver is appointed trustee or liquidator either by a summary procedure order, where the assets of an estate do not exceed $200,000, or by a meeting of creditors in bankruptcy, and meetings of creditors and contributories in compulsory liquidation.
When he acts as trustee or liquidator the Official Receiver investigates the affairs of the bankrupt or the wound-up company, realises assets and distributes dividends to creditors. The Official Receiver also prosecutes certain offences set out in the Bankruptcy and Companies Ordinances, applies for disqualification of company directors, supervises the work of outside liquidators and trustees, and monitors the funds held by liquidators in compulsory and voluntary liquidations.
The Bankruptcy (Amendment) Bill 1996 was introduced into the Legislative Council during the year. The purpose of the Bill was to rationalise and update the statutory framework for personal insolvency based upon recommendations of the Law Reform Commission. The main changes included abolishing the outdated concept of 'acts of bankruptcy', providing for automatic discharge for bankrupts after a certain period and for new voluntary arrangements to encourage debtors to resolve their problems without having to become bankrupt, and substantially simplifying procedures under the ordinance.
During the year, the High Court made 543 receiving orders and 557 winding-up orders. The assets realised by the Official Receiver during 1996 amounted to $113.32 million, while $62.91 million in dividends were paid to creditors in 249 insolvency
cases.
Professional Accountancy
Hong Kong had 11 655 registered professional accountants at the end of 1996. Of these, 2 203 were certified public accountants (CPAs) or public accountants (PAs)
FINANCIAL AND MONETARY AFFAIRS
who are in public practice and entitled to perform statutory audits. There were 855 CPA firms and one corporate practice in the territory at the end of the year.
The Hong Kong Society of Accountants is a self-regulatory body established under the Professional Accountants Ordinance with a wide range of responsibilities for registering professional accountants, maintaining accounting, auditing and ethical standards for the profession and conducting professional accountants examinations.
The Professional Accountants (Amendment) Ordinance 1995 was brought into effect in August 1996. Its principal purpose is to allow accountancy practices to incorporate with limited liability subject, inter alia, to taking out adequate professional indemnity insurance.
Hong Kong Monetary Authority
The HKMA was established in April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. The Exchange Fund (Amendment) Ordinance 1992 provided for the establishment of the HKMA.
The policy objectives of the HKMA are to maintain currency stability, within the framework of the Linked Exchange Rate System, through sound management of the Exchange Fund, monetary policy operations and other means deemed necessary; to ensure the safety and stability of the banking system through the regulation of banking business and the business of taking deposits, and the supervision of authorised institutions; and to promote the efficiency, integrity and development of the financial system, particularly payment and settlement arrangements. The HKMA is divided into five departments: Monetary Policy and Markets; Reserves Management; Banking Policy; Banking Supervision; and External.
The HKMA is an integral part of the Hong Kong Government, but can employ staff on terms different from those of the civil service to attract personnel of the appropriate experience and expertise. Its staff and operating costs are charged directly to the Exchange Fund, instead of the general revenue.
The HKMA is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee on matters relating to the control of the Exchange Fund. The committee's involvement in respect of monetary and investment matters has become much stronger. It functions like a management board, meets monthly and advises the Financial Secretary on, among other things, the HKMA's annual budget.
Monetary Policy
The Linked Exchange Rate System was introduced on October 17, 1983, after a period of volatility in the exchange rate of the Hong Kong dollar. Under the system, certificates of indebtedness (CIs) issued by the Exchange Fund, which the three note- issuing banks are required to hold as backing for the issue of Hong Kong dollar notes, are issued and redeemed against US dollars at a fixed exchange rate of $7.80 to US$1. In practice, therefore, any increase in note circulation is matched by a US dollar payment to the Exchange Fund, and any decrease in note circulation is matched by US dollar payment from the Exchange Fund. In the foreign exchange market, the exchange rate of the Hong Kong dollar continues to be determined by forces of supply and demand. Against the fixed exchange rate for the issue and redemption of CIs, the market exchange rate stays close to the rate of $7.80 to US$1.
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Under the Linked Exchange Rate System, it is essential that interest rates should be flexible in order to minimise deviations of the exchange rate from the fixed level. This was why the lower limit for interest rates was eliminated when the HKAB introduced in January 1988 revised Interest Rate Rules, under which banks may impose deposit charges (negative interest rates) on large Hong Kong dollar credit balances maintained by their customers, if the need arises. The revised rules provided a tool to deter speculation on a revaluation of the Hong Kong dollar, which emerged in late 1987 and continued in early 1988. In practice, however, there has been no need to impose the deposit charges, as the mere threat of their imposition has been effective in deterring speculation.
The upper limit for interest rates was removed in July 1988, when the Money Lenders Ordinance was amended to exempt all authorised institutions under the Banking Ordinance from the restriction of lending money at an effective interest rate exceeding 60 per cent per annum.
To help the HKMA use the Exchange Fund to exercise more effective influence over liquidity and interest rates in the interbank market, and so to help it maintain exchange rate stability within the framework of the Linked Exchange Rate System, the Accounting Arrangements were entered into in July 1988 between the Financial Secretary and the Hongkong and Shanghai Banking Corporation Limited (HSBC) as the management bank of the clearing house of the HKAB.
Under the Accounting Arrangements, the HSBC maintains a Hong Kong dollar account with the Exchange Fund. The HKMA uses the account at its discretion to effect settlement of its Hong Kong dollar transactions with the HSBC or with other banks. The HSBC is required to ensure that the net clearing balance (NCB) of the rest of the banking system does not exceed its balance in the account and that the NCB is not in debit; otherwise, it will have to pay penal interest to the HKMA.
Consequently, the HKMA, through the use of the Exchange Fund, has effectively become the ultimate provider of liquidity in the interbank market, a role which was previously performed by HSBC. Through the borrowing of Hong Kong dollars in the interbank market, or selling foreign currencies for Hong Kong dollars in the foreign exchange market, the HKMA is able to reduce the supply of Hong Kong dollars and so raise interest rates in the interbank market, in this way offsetting downward pressure on the exchange rate of the Hong Kong dollar against the US dollar. Similarly, it may increase interbank liquidity and lower interest rates by taking action in the opposite direction, offsetting upward pressure on the exchange rate.
Under the Accounting Arrangements, the HKMA can also influence monetary conditions in the interbank market through its buying or selling of Hong Kong dollar financial assets of acceptable quality. For this purpose, the HKMA has developed a programme for the issue of short-term and longer-term paper for the account of the Exchange Fund (Exchange Fund Bills and Notes). The Exchange Fund paper is designed to complement the Accounting Arrangements by providing the HKMA with an additional instrument to conduct money market operations.
In June 1992, the Liquidity Adjustment Facility (LAF) was introduced to help banks make late adjustments to their liquidity positions. The bid rate (for taking overnight deposits from banks) and offer rate (for lending overnight money to banks) are set having regard to the level of interest rates appropriate for maintaining
Floor traders scramble for business at the Stock Exchange of Hong Kong, where the Hang Seng Index pushed past 13 000 points in November for the first time. The Index finished the year on 13 451.45, up 34 per cent on the closing figure for 1995. The Exchange began trading operations in its gleaming granite and glass harbourfront premises on April 2, 1986, with 51 corporate and 708 individual members; while 253 public companies were listed with a total market capitalisation of $419 billion. A decade later this had become 354 corporate and 209 individual members; and 583 listed- - companies with a total market capitalisation of $3,475.9 billion.
'An architectural talking point from its conception in 1979 to its completion
in 1986, the HongkongBank Headquarters Building is a striking part of Central. It has been joined by the Bank of China Building (below) and the Standard Chartered Building (right), which between them and the muscular towers of Admiralty (below, right), form the heart of Hong Kong's financial district. Almost 200 authorised institutions and local representative offices of banks from more than 40 countries conduct business in Hong Kong, and have helped promote the territory as an international financial centre. The banking sector's external assets are among the highest in the world.
t
i
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Y
LAGOS
Traders at the Chinese Gold and Silver Exchange Society operate in one of the world's largest
gold bullion markets. They trade in gold of 99 per cent
fineness, weighed in taels (one tael equals 1.2 troy
ounces) and quoted in Hong Kong dollars.
紐約
NEW YORK
悪
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FINANCIAL AND MONETARY AFFAIRS
exchange rate stability. These rates provide an additional tool for the HKMA to influence the movements of the interbank interest rates.
As a step to strengthen co-operation with regional central banks/monetary authorities, the HKMA has entered into bilateral repurchase agreements with eight Asian central banks/monetary authorities, including Australia, China, Indonesia, Japan, Malaysia, the Philippines, Singapore and Thailand. Under these bilateral agreements, the central banks/monetary authorities would, when needed, provide liquidity on a bilateral basis using US dollar government securities as collateral. This helps to enhance the liquidity of each other's foreign currency reserves.
The HKMA set up a Representative Office in New York in October 1996. The establishment of the office helps enhance HKMA's capability to monitor the financial markets outside the Asia time zone as well as strengthen the liaison between the HKMA and the Federal Reserve Bank of New York and other US regulatory authorities.
Monetary Situation ·
During 1996, the Hong Kong dollar exchange rate remained stable against the US dollar under the Linked Exchange Rate System, moving within a narrow range between $7.7310 and $7.7450 to US$1. Reflecting an inflow of funds into the local stock market at the beginning of the year (as evidenced by the surge in the Hang Seng index from 10 073 at end-1995 to a high of 11 595 on February 16), the HK dollar exchange rate strengthened marginally from $7.737 in early December 1995 to $7.731 towards the end of February. In mid-June, amidst the trade dispute between China and the USA, the HK dollar eased slightly from $7.735 to $7.745 but it quickly rebounded upon successful conclusion of the trade negotiation. In the second half of the year, the HK dollar exchange rate stayed around $7.732 to $7.741, closing the year at $7.736.
In the international currency markets, continuing the trend in the second half of 1995, the US dollar appreciated against other major currencies during 1996. The Yen/US$ exchange rate appreciated from 103.9 yen at the beginning of the year to 116 by end of the year, representing a rise of 11.6 per cent. The US dollar also strengthened marginally against the Deutschmark during the year, by 7.3 per cent. On the other hand, the Renminbi remained stable against US dollar, moving within a narrow range between RMB8.30 and RMB8.34. Reflecting these movements, the Effective Exchange Rate Index of the Hong Kong dollar rose from 122.7 at end-1995 to 125.3 at end-1996.
Under the Linked Exchange Rate System, Hong Kong dollar interest rates tracked closely US interest rates. On February 1, the US Discount Rate was lowered by 25 basis points (bps, or one-hundredths of one per cent). In line with the move, the LAF bid and offer rates were adjusted downwards by the same magnitude, to 4 per cent and 6 per cent respectively. The savings deposit rate and the best lending rate of major banks were also lowered by 25 bps. By the end of the year, the savings deposit rate and the best lending rate stood at 3.75 per cent and 8.5 per cent respectively, compared with 4 per cent and 8.75 per cent at the end of last year.
In September 1996, the HKMA changed the reference rate for the bid and offer rates under the LAF from US Discount Rate to the Fed Funds Target Rate, subject
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90
to the US Federal Reserve continuing with the present practice of making timely announcement of changes in the Fed Funds Target Rate.
The overnight interbank interest rate remained stable and moved within the corridor set by the LAF bid and offer rates. Towards the end of June, share subscriptions and mid-year settlements by some banks and companies led to a sudden increase in the demand for liquidity. Overnight HIBOR briefly firmed to 6.625 per cent, exceeding the then LAF offer rate, at 6 per cent. Upon the injection of $420 million by the HKMA, tightness in the interbank market eased.
Moving in line with the three-month Euro dollar deposit rate, the three-month HIBOR fell from 5.75 per cent at the beginning of the year to around 5.30 per cent in early February. Following the cut in the US Discount Rate and the Fed Funds Target Rate, the three-month HIBOR edged up slightly, reflecting the market expectation of a possible upward adjustment in the US interest rate later in the year. In mid-March, following the release of strong US economic indicators, the three-month HIBOR rose further from 5.375 per cent in early April to 5.688 per cent in mid-July. For the year as a whole, the three-month HIBOR fell by 37.5bps to 5.5 per cent at end-December. The interest rate spread between the three-month HIBOR and Euro dollar interest rate remained narrow. The average differential in 1996 stood at only 9.7bps. Longer term interest rates were more affected by the market expectation of a US interest rate hike and the Hong Kong dollar yield curve steepened from February. By end-1996, the yields of the five-year and seven-year Exchange Fund Notes stood at 6.7 per cent and 7.01 per cent, respectively, 46bps and 43bps above the yields at the beginning of 1996.
Reflecting an increase in transaction demand for money, contributed in part by a recovery of retail sales, Hong Kong dollar M1 rose by 15.8 per cent (to November), significantly higher than the growth rate of 2.2 per cent recorded in 1995. Hong Kong dollar M3, the broad money supply, rose by 19 per cent, consistent with the growth rate of nominal GDP and broadly in line with the growth of total HK dollar loans of 16.9 per cent in the same period.
Exchange Fund
The Hong Kong Government's Exchange Fund was established by the Currency Ordinance of 1935 (later renamed the Exchange Fund Ordinance). Since its inception, the fund has held the backing to the note issue. In 1976, its role was expanded. The assets of the Coinage Security Fund (which held the backing for coins issued by the government), as well as the bulk of foreign currency assets held in the government's General Revenue Account, were transferred to the fund. On December 31, 1978, the Coinage Security Fund was merged with the Exchange Fund.
In 1976, the government began to transfer the fiscal reserves of its General Revenue Account (apart from the working balances) to the fund. This arrangement was introduced to avoid fiscal reserves having to bear exchange risks arising from investments in foreign currency assets and to centralise the management of the government's financial assets. The fiscal reserves are not permanently appropriated for the use of the Exchange Fund, but are repaid to the General Revenue Account when they are required to meet the obligations of the general revenue. Through this transfer of the fiscal reserves, the bulk of the government's financial assets are, therefore, with the fund.
FINANCIAL AND MONETARY AFFAIRS
The Exchange Fund's statutory role, as defined in the Exchange Fund Ordinance, is to influence the exchange value of the Hong Kong dollar. It is used to intervene, when necessary, in the local money market or foreign exchange markets to maintain currency stability. Its functions were extended on the enactment of the Exchange Fund (Amendment) Ordinance 1992 by introducing a secondary and subsidiary role of maintaining the stability and integrity of the monetary and financial systems, with a view to maintaining Hong Kong as an international financial centre.
The HKMA manages the fund. Apart from ensuring that the fund meets its statutory roles, the principal activity of the HKMA on a day-to-day basis is the active management of fund assets. These are held mainly in the form of bank deposits, equities and marketable interest-bearing instruments in certain foreign currencies and in Hong Kong dollars.
The HKMA adopts an ongoing programme, initiated on its formation in April 1993, of reviewing its investment operations and strategy. Having regard to the statutory purposes for which the Exchange Fund was created and maintained, the investment style and strategies now in place closely resemble those of comparable central banks and monetary authorities. Strategies appropriate to a long-term fund such as a benchmark approach and a greater use of the long-term capital markets have been adopted, and the range of currencies and instruments used has also been increased.
. The HKMA continues to place great emphasis on establishing links with other market participants. The management style is one of openness and co-operation with the market, with a view to encouraging close working relationships to enable the markets to play their part in assisting in the HKMA's management of the fund. In terms of day-to-day operation, the HKMA has established three portfolios: (a) a portfolio of assets to act as a hedge against the interest-bearing liabilities of the fund, to ensure that it can at all times meet all the claims upon it; (b) a portfolio of liquid reserves to be available whenever required to meet market operational needs; and (c) an investment portfolio to preserve the fund's value for future generations in Hong Kong. The returns from the management of the fund and the investment style adopted are set out and explained in the HKMA's annual report each year.
Another function related to the Exchange Fund is to supply notes and coins to the banking system. Bank notes in denominations of $20, $50, $100, $500 and $1,000 are issued by the Hongkong and Shanghai Banking Corporation Limited, the Standard Chartered Bank and the Bank of China. Apart from a very small fiduciary issue, which is backed by eligible securities, the note-issuing banks may issue currency notes only against non-interest-bearing CIs issued by the fund. The fund bears the costs of maintaining the note issue (apart from the proportion of the costs relating to the fiduciary issue), and accrues the net profits of the note issue.
Administration of the coin circulation is the responsibility of the HKMA. Coins of $10, $5, $2, $1, 50 cents, 20 cents and 10 cents denominations are issued by the government, and the assets received against their issue are held in the Exchange Fund. The government also issued currency notes of one-cent denominations until September 30, 1995, after which they were demonetised and ceased to be legal tender. The introduction of the bauhinia flower series continued, with greater emphasis being placed on the higher denominations. The total currency in circulation at the end of 1996 was $87.1 billion.
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FINANCIAL AND MONETARY AFFAIRS
In 1997, the HKMA will issue a $1,000 gold coin and a set of seven circulation coins to commemorate the establishment of the Hong Kong Special Administrative Region. The set of seven coins, each with its own special design, will be in the same denominations as the seven currently circulating coins. The new set of coins is for general circulation and will be available during the first half of 1997.
Banknotes issued by the three note-issuing banks are printed in Hong Kong by the Hong Kong Note Printing Ltd. The HKMA acquired this printing plant from De La Rue plc of the UK in 1996 on behalf of the government and is now responsible for the operation and management of the plant. The acquisition will let the government have closer involvement in the production of Hong Kong dollar currency notes, which is consistent with the responsibilities vested in it under the Legal Tender Notes Issue Ordinance and the Basic Law. The acquisition has no impact on the present note issue mechanism in Hong Kong.
On December 31, 1995, the fund's total assets stood at $461 billion, of which foreign currency assets amounted to US$55 billion. Accumulated earnings amounted to $160 billion. The fund's financial position for the six years from 1990 to 1995, inclusive, is shown at Appendix 17. With a view to showing the government's continued commitment to greater openness and transparency, and to providing the public with more evidence of the considerable strength of Hong Kong's external position, foreign reserves figures are made available on a quarterly basis during the year and figures from January 1997 onwards will be released on a monthly basis. Based on unaudited figures, the fund's total assets stood at $485 billion and its accumulated earnings amounted to $162 billion as at June 30, 1996. Foreign currency assets, excluding forward transactions to be settled, amounted to US$63.8 billion at December 31.
7 TRADE AND INDUSTRY
DURING 1996, Hong Kong's economy continued to restructure from a low cost assembly type manufacturing entity towards a regional service and commercial centre and a high value-added manufacturing base. The Hong Kong government embarked on a programme to promote service industries and upgrade technological infrastructure.
Hong Kong's external trade experienced a moderate growth in 1996, with total trade increasing by 3.5 per cent over the previous year. In particular, re-exports registered a 6.6 per cent increase, reflecting the continued important role of Hong Kong as an entrepôt. The gross total value of re-exports was $1,186 billion. Imports rose by 3 per cent to $1,536 billion.
Trade and Industrial Policies
Hong Kong's continuing success as a leading commercial and manufacturing centre owes much to a simple tax structure and low tax rates, a versatile and industrious workforce, its excellent infrastructure, and the government's firm commitment to free trade and free enterprise. The government believes its task is to facilitate commerce and industry within the framework of a free market.
The government's industry policies aim to promote industrial development by creating a business-friendly environment and providing support services. The government zones land for general and specialised industrial use, maintains and develops advanced education and training facilities, ensures a modern legislative and regulatory environment, funds facilities to enhance productivity and quality as well as encourage applied research. It also encourages technology transfer through an investment-promotion programme. However, the government neither protects nor
subsidises manufacturers.
Trade and industry policies are kept under review by the Trade and Industry Branch of the Government Secretariat. The Secretary for Trade and Industry is advised on industry matters by the Industry and Technology Development Council (ITDC), and on trade issues by the Trade Advisory Board and the Textiles Advisory Board. Members of these bodies include prominent industrialists and businessmen, representatives of major industrial and trade organisations and relevant government officials.
External Trade
Hong Kong is the world's eighth-largest trading entity in terms of value of merchandise trade; the fourth-largest if all Member States of the European Union are
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94
counted as a single entity. In 1996, it recorded a trade deficit of $138 billion with total exports at $1,398 billion and imports at $1,536 billion.
Its largest trading partner is China, followed by the USA and Japan. Appendices 18, 19 and 20 provide summary statistics of external trade.
Imports
Hong Kong is almost entirely dependent on imported resources to meet the needs of its six million people and its diverse industries. Consumer goods, at $573 billion in 1996, constituted the largest share of total imports. This was followed by raw materials and semi-manufactured goods ($541 billion) and capital goods, foodstuffs and fuels ($422 billion).
China, Japan and Taiwan remained the main suppliers of Hong Kong's imports in 1996, accounting for 37 per cent, 14 per cent and 8 per cent of the total, respectively.
Domestic Exports
Clothing continued to be the largest component of domestic exports, valued at $69 billion or 33 per cent of the total in 1996. This percentage has remained stable over the past decade. At $30 billion, electrical machinery, apparatus and appliances came second. Other important exports included office machines and automatic data processing machines; photographic apparatus, equipment and supplies and optical goods; and textiles.
The pattern and volume of Hong Kong's export trade are closely related to the economic conditions and commercial policies of its major overseas markets. In 1996, China, the USA and Germay were Hong Kong's largest markets, absorbing 29 per cent, 25 per cent and 5.4 per cent of total domestic exports, respectively.
Re-exports
Re-exports registered moderate growth in 1996. Re-exports made up 85 per cent of the value of total exports, reflecting the continued importance of Hong Kong as an entrepôt for China.
Principal commodities re-exported included electrical machinery, apparatus and appliances ($124 billion or 10 per cent of the total) and telecommunications and sound recording and reproducing apparatus and equipment ($116 billion or 9.8 per cent of the total). Other major re-exports included textiles, clothing and baby carriages, toys, games and sporting goods. China, Japan and Taiwan were the main origins of the re-exports, with China, the USA and Japan the major destinations.
The Manufacturing Sector
Restructuring of the manufacturing sector reduced its contribution to GDP from 18 per cent in 1990 to about 9 per cent in 1995, but it continued to be an important sector of the economy. The sector was the territory's third-largest employer, employing 327 464 persons (12.9 per cent of the total employment) in 1996. Mechanisation, automation and relocation of assembly-type operations to China have accelerated the development of more knowledge-based and higher-value-added manufacturing.
TRADE AND INDUSTRY
The clothing industry was the largest employer in the manufacturing sector in 1996, followed by the printing, publishing and allied industries. Chart 1 shows the breakdown of employment within the manufacturing sector in 1996.
Printing
13.6% (44 436)
Electronics
9.4% (30 944)
Textiles
7.8% (25 572)
Metal Products
5.6% (18 272)
Food & Beverage
6.5% (21 275)
Others 29.6% (97 039)
Clothing 27.5% (89 926)
Chart 1: Number of Persons Employed by the Manufacturing Sector in 1996
Manufacturing establishments in Hong Kong are generally small. Of the 27 316 manufacturing establishments in 1996, 26 205 employed fewer than 50 people. They accounted for about 50.8 per cent of Hong Kong's total manufacturing employment. Many small establishments are linked with larger factories through an efficient and flexible sub-contracting network. Such an arrangement has enabled the manu- facturing sector to respond swiftly to changes in demand.
The manufacturing sector remains export-oriented: about 80 per cent of the products manufactured were exported. Domestic exports amounted to $212 160 million in 1996. Major export items included clothing, electronics, textiles, watches and clocks, and chemical products. In 1994, Hong Kong was the world's third-largest clothing exporter. It was also the second-largest exporter of watches by quantity and the third-largest by value.
Major export markets in 1996 were China (29 per cent), the United States of America (25.4 per cent), Germany (5.4 per cent), Japan (5.3 per cent) and United Kingdom (5 per cent). The clothing industry was also the largest export-earner in the manufacturing sector in 1996, followed by the electronics industry. Chart 2 shows the value of domestic exports of the major industries in 1996.
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96
Electronics
26.0%
(HK$55,067 million)
Textiles
6.5%
(HK$13,693 million)
Watches & Clocks
5.6%
TRADE AND INDUSTRY
(HK$11,987 million)
Chemical 4.1%
Jewellery 2.7%
Clothing 32.7%
(HK$69,447 million)
Others 22.4%
(HK$47,497 million)
(HK$8,691 million)
(HK$5,777 million)
Chart 2: Value of Domestic Exports of the Manufacturing Sector in 1996
External Investment
The Industry Department promotes and facilitates overseas investment in Hong Kong to diversify the local manufacturing and service industries, improve quality of products and services, and enhance productivity through introduction of advanced technology and management skills. It maintains a One-Stop Unit in Hong Kong which works closely with seven overseas Investment Promotion Units in Brussels, London, New York, San Francisco, Sydney, Tokyo and Toronto. Together, they provide advice and assistance to potential overseas investors in developing investment plans in Hong Kong.
According to the Industry Department's 1996 Survey of External Investment in Hong Kong's Manufacturing Industries, there were 430 foreign-owned manufac- turing companies in Hong Kong at the end of 1995, contributing a total inward investment of $48.28 billion at original cost. These companies employed 65 521 persons (i.e. 17 per cent of Hong Kong's total manufacturing employment) and accounted for 36 per cent of Hong Kong's total domestic exports. Charts 3 and 4 give further information on the sectors and source countries of these companies. Another Industry Department survey found that 2 307 overseas companies had established regional headquarters or regional offices in Hong Kong to co-ordinate their business activities in the region.
To provide additional assurance to overseas investors, Hong Kong has concluded bilateral investment promotion and protection agreements with some of its major
TRADE AND INDUSTRY
investment partners, including the Netherlands, Australia, Denmark, Sweden, Switzerland, New Zealand, Italy, France, Germany, Belgium, Luxembourg and Austria.
Industry Breakdown
31.3%
9.3%
9.2%
31.1%
Electronics #
Textiles & clothing
Electrical products
Chemical products
Food and beverage
5.1%
Printing and publishing
5.5%
Others
8.5%
Note: #Percentage for the electronics industry excludes electronic toys, watches and clocks.
Chart 3: External Investment in Hong Kong's Manufacturing Industries
38.7%
15.8%
Japan
2.4%
U.S.A
3.7%
China
4.8%
U.K.
7.0%
Netherlands
Switzerland
Others
27.6%
Chart 4: Source of External Investment
Documentation of Imports and Exports
As a free port, Hong Kong keeps its import and export licensing requirements to a minimum. Most products do not need licences to enter or leave the territory. Where licences or notifications are required, they are intended to achieve two main objectives. First, they help Hong Kong to fulfil its international obligations to restrain exports of textiles products and to monitor the flow of these products into and out of Hong Kong. Secondly, they are imposed on health, safety, environmental, security or anti-smuggling grounds. Items covered included strategic commodities,
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reserved commodities, pharmaceutical products and medicines, pesticides, radioactive substances and irradiating apparatus, left-hand-drive vehicles and ozone-depleting substances.
Hong Kong maintains a certification of origin system that, apart from enabling the origin of goods which Hong Kong exports to be established, also supports claims for preferential tariff treatment from donor countries where such schemes are operated. The Trade Department administers this system and issues certificates of origin where required. Five other organisations have been designated by the government to issue certificates of origin. They are the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Indian Chamber of Commerce Hong Kong, the Chinese Manufacturers' Association of Hong Kong, and the Chinese General Chamber of Commerce.
Electronic Data Interchange
Hong Kong's use of electronic data interchange has continued to expand. Electronic data interchange, the computer-to-computer exchange of business information in standard formats, is one of the techniques being implemented world-wide in an attempt to curb the amount of paperwork involved in business and to improve efficiency.
During the year, final testing of the Community Electronic Trading Service (CETS) was completed and the CETS became operational in September. The CETS is a joint venture involving the government and 10 leading trade-related organisations in Hong Kong. Its initial service covers applications for export licences for textiles and clothing shipped under quota and lodgements of trade declarations. Coupled with the private sector electronic data interchange services already on offer, the stage is set for a significant increase in the number of companies using electronic data interchange in Hong Kong.
In the interests of compatibility, the government agreed that the United Nations Electronic Data Interchange for Administration, Commerce and Transport, a standard developed by the UN for electronic trading, will be adopted for government transactions wherever applicable. The government is pleased to note that the private sector services also incorporate this standard.
The Industry Department
The mission of the Industry Department is to facilitate the development of manufacturing and manufacturing-support industries in Hong Kong within the framework of a free market. To achieve this, the department works with its partners in government, business, tertiary institutions and industrial support organisations to provide the necessary land, physical infrastructure and trained people to facilitate access to relevant technologies; to encourage applied research and development; and to monitor developments in markets and technologies which may impinge upon the competitiveness of the local manufacturing sector.
Land
The government put up 26 208 square metres of industrial land for sale by tender in 1996. Private developers provided an additional 26 800 square metres of flatted factory space in 1995. Construction of the second phase of the Tseung Kwan O
TRADE AND INDUSTRY
Industrial Estate will be completed in 1997 and will provide 46.6 hectares of land. A fourth industrial estate is planned to meet future demands of industries that cannot be accommodated in multi-storey factory buildings.
Technical Education and Industrial Training
The Vocational Training Council (VTC) provides technical education and industrial training and administers a New Technology Training Scheme which provides financial assistance to employers to train their technologists and managers in new technologies. The Clothing Industry Training Authority (CITA) runs two training centres for clothing and footwear. The department is represented on the VTC and the CITA. Higher-level education and training are provided by the tertiary education institutions.
Technology
The Hong Kong Productivity Council (HKPC) is a statutory body established in 1967 to promote improvement in productivity in industries. The Hong Kong Industrial Technology Centre Corporation (HKITCC) was established to facilitate the promotion of technological innovation and the application of technologies in Hong Kong industries.
Through the Industrial Support Fund scheme set up in 1994, the government provides financial support to projects that contribute to Hong Kong's industrial and technological development. By October 1996, it had committed $765 million for 211 projects undertaken by industry associations, higher-education institutes and industrial support organisations.
Quality Services
The department's Quality Services Division promotes the wider application of quality assurance in the manufacturing and service sectors and maintains important quality infrastructure services. The Hong Kong Government Standards and Calibration Laboratory is the official custodian of Hong Kong's measurement standards providing traceability for local measurements.
The Hong Kong Laboratory Accreditation Scheme offers formal recognition to competent local laboratories and facilitates the acceptance of local test certificates overseas. The Product Standards Information Bureau is the reference point for information on various national and international product standards.
Applied Research and Development
Major efforts have been made to encourage applied research and development in recent years. The Applied R&D Scheme, started in February 1993, seeks to foster the technological capabilities and competitiveness of industry. Funding support can take the form of a loan or equity participation. At October 1, 1996, 18 applied research and product development projects had been approved for funding, with a commitment of $64 million, in areas such as software development, telecom- munications products, security systems and pharmaceutical products. In June 1995, a new scheme called Co-operative Applied Research and Development Scheme was launched to support product development projects undertaken in collaboration with China's research institutes. At October 1, 1996, four projects in the fields of
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biotechnology, telecommunication and robotic engineering were approved with a commitment of $21 million.
Monitoring Technology and Market Trends
The department conducts periodic studies of the major sectors of the manufacturing industries to look at technology and market trends and identify constraints on industrial development. In 1996, the study on the textiles and clothing industries was completed and a consultancy study on the metals and light engineering industries was initiated. Following the completion of a consultancy study on Hong Kong's software industry in 1995, action such as the establishment of a Software Industry Information Centre and a Cyberspace Centre was taken to provide infrastructural support to encourage the development of the software industry. The proposed Hong Kong Science Park received strong public support and the Industry Department is working out the institutional arrangements for setting it up.
Environmental Controls
In 1996, the department commissioned the Hong Kong Productivity Council to operate a hotline, organise seminars and workshops and arrange factory visits to provide information and technical advice to help manufacturers comply with environmental controls. General information is disseminated through an annual guide on environmental legislation affecting manufacturers. There are also design manuals and eco-audit manuals for specific industries and a directory on environmental technology and services.
Hong Kong Awards for Industry
These prestigious awards for excellence in industrial performance are co-ordinated by the department and are an important highlight in the industrial calendar for manufacturers. The awards cover six categories consumer product design, machinery and equipment design, productivity, quality, environmental performance and export marketing. Each category is organised by a leading organisation connected with the manufacturing sector.
Small and Medium Enterprises (SMEs)
A Small and Medium Enterprises (SMEs) Committee was established in July 1996. Its members comprise representatives of chambers of commerce, trade and industry support organisations as well as SME practitioners. The committee aims to identify issues affecting SMEs and suggest measures which would facilitate their development.
Symposium on Services Promotion
To stimulate ideas and discussion in the community - in particular the business sector on the way forward for services promotion, the government and seven major trade and industry support organisations jointly organised a symposium in March 1996. The event tied in with a wider government initiative to promote the service sector and was well attended by business leaders, academics and government officials.
TRADE AND INDUSTRY
Industrial Support Agencies
Hong Kong Productivity Council
The Hong Kong Productivity Council (HKPC) promotes productivity excellence through its diverse range of consultancy services to enhance the value-added content of products and services. The HKPC is the government's representative to the Asian Productivity Organisation on productivity issues.
During the year, the HKPC introduced new initiatives in promoting people, product and process development. Two major initiatives were the expansion of its portfolio to support service industries and the formulation of a strategy to promote R&D. Other examples included the Quality Performance Improvement Programme through the HKPC-Xerox Quality Institute, the ISO 14000 (Environmental Management System) Pilot Programme, and the establishment of the Electro- magnetic Compatibility Compliance Centre, the Radio Frequency Product Characterisation and Training Centre, the Quick Response Centre, the Jewellery Technology Centre and the Clock and Watch Technology Centre.
Hong Kong Industrial Technology Centre Corporation
Hong Kong Industrial Technology Centre Corporation (HKITCC) is a statutory body set up by the government in 1993. Its mission is to facilitate the promotion of technological innovation and application of new technologies in Hong Kong industry. To meet its objectives, HKITCC has developed three major programmes: the Technology-Based Business Incubation Programme to nurture technology start- ups; the Technology Transfer Programme; and R&D Support and Services Programme to support research and development activities. To extend HKITCC's services, the government has accepted the case for developing a second Tech Centre.
Hong Kong Industrial Estates Corporation
The Hong Kong Industrial Estates Corporation is responsible for developing and managing industrial estates in Hong Kong. It offers land at cost to manufacturing industries which cannot operate in multi-storey factory buildings. The corporation has three estates in the New Territories: at Tai Po, Yuen Long and Tseung Kwan O, providing a total of 210 hectares of land.
External Commercial Relations
Hong Kong possesses full autonomy in the conduct of its external commercial relations. The Governor is entrusted with executive authority to conduct external relations on behalf of the territory, including the conclusion and implementation of trade agreements, whether bilateral or multilateral, with states, regions and international organisations.
Within the context of the government's free trade policy, the objectives of Hong Kong's commercial relations are to ensure that its trading rights in overseas markets are protected and its international obligations are fulfilled. The territory's success is reflected in the steady rise in the value and sophistication of its exports in recent
years.
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World Trade Organisation (WTO)
The World Trade Organisation (WTO) oversees the implementation of the multilateral rules and disciplines agreed to at the Uruguay Round (UR) of negotiations for trade in goods, services and trade-related aspects of intellectual property rights. It also serves as a forum for multilateral trade negotiations. The multilateral trading system under the WTO is the cornerstone of Hong Kong's external trade policy. Hong Kong supports a strong and credible multilateral trading system, to sustain global trade liberalisation and economic growth.
Hong Kong is a founding member of the WTO. This separate membership status will continue beyond 1997, under the name of 'Hong Kong, China', reflecting Hong Kong's autonomy in the conduct of its external commercial relations as guaranteed under the Sino-British Joint Declaration on the Question of Hong Kong and the Basic Law of the Hong Kong Special Administrative Region.
Hong Kong participates actively in the work of the WTO to ensure proper and full implementation of the UR outcome, and to safeguard Hong Kong's trading interests. Hong Kong played an active role in the preparatory process leading to, and at, the first WTO ministerial conference in Singapore on December 9-13, 1996. The conference reviewed progress on implementation of the UR agreement and adopted a future work programme for the WTO. Hong Kong will continue to participate actively in taking forward the agreed future WTO work programme to further global trade liberalisation.
Textiles
Hong Kong's textiles exports to the European Union (EU), Norway, Canada and the USA are subject to certain quantitative restrictions maintained under the WTO Agreement on Textiles and Clothing (ATC) which came into force on January 1, 1995. This provides for the phased removal of quantitative restrictions on these products in 10 years. Hong Kong monitors closely the implementation of the ATC and the functioning of its supervisory body, the Textiles Monitoring Body, to safeguard Hong Kong's rights under the ATC. Through the co-ordination of the International Textiles and Clothing Bureau, of which Hong Kong is a member, Hong Kong and a group of developing country exporters of textiles work together to ensure that the liberalisation process under the ATC is on course, and to explore possibilities for further liberalisation.
Upon the formation of the EU/Turkey Customs Union in January 1996, Turkey imposed unilateral and discriminatory quantitative restrictions on Hong Kong's textiles exports. With a view to urging Turkey to rescind its action, Hong Kong initiated consultations with the country in April 1996. Since these did not resolve the matter, Hong Kong will continue to seek protection of its position in accordance with the WTO rules and procedures.
During the year, the US imposed additional import measures on 10 categories of Hong Kong garments. Representatives of the governments of Hong Kong and the USA met to discuss ways to address the problem and bilateral co-operation to control and eliminate illegal transshipment of textiles and garments. Both governments are committed to continuing their mutual efforts to resolve the matter.
TRADE AND INDUSTRY
Non-textiles Issues
The European Commission (EC) initiated anti-circumvention investigations into 3.5- inch microdisks originating from Hong Kong in October 1995. Hong Kong raised objections to the initiation and engaged the EC in consultations. The EC's investigation, conducted in Hong Kong in January 1996, could not establish evidence of circumvention. In July, the EC terminated the case.
With the coming into effect of the General Agreement on Trade in Services (GATS) when the WTO was established in January 1995, global trade in services is now governed by a legally enforceable multilateral agreement. Hong Kong plays an active role in the WTO forum to ensure the proper functioning of the GATS and progressive liberalisation of trade in services.
During the first half of the year, the Hong Kong Government and the private sector continued to emphasise to the administration and members of Congress the adverse effects on Hong Kong's economy if the USA were to withdraw China's Most Favoured Nation (MFN) trading status, or to impose conditions on the renewal of the status. On May 31, President Clinton announced his decision to renew China's MFN trading status unconditionally for another year. A joint resolution dis- approving the President's decision on MFN was introduced but was defeated by a floor vote in the House of Representatives on June 27.
The outcome removed uncertainty over Sino-USA trade relations, and allowed Hong Kong businessmen to plan and conduct their operations accordingly. China and the USA are Hong Kong's two largest trading partners and good relations between them are of vital importance to the territory as a trading, financial and investment centre.
Trade Department
The Trade Department is responsible for Hong Kong's commercial relations with. foreign governments. It implements trade policy and agreements, and conducts import and export licensing and origin certification.
The department consists of five divisions. The Multilateral Division deals with the multilateral aspects of Hong Kong's external commercial relations, such as its participation in the World Trade Organisation (WTO). The Regional Co-operation Division takes care of activities related to the Asia-Pacific Economic Co-operation forum (APEC), the Pacific Economic Co-operation Council (PECC) and commercial relations with Asia, Australia and New Zealand.
The Americas Division and the Europe, Africa and Middle East Division deal with bilateral commercial relations with Hong Kong's trading partners in their respective geographical areas. Such work includes the conduct of trade negotiations and the implementation of textiles agreements, as well as the collection and dissemination of information on developments which may affect Hong Kong's external trade, especially those relating to trade policies and measures adopted in its major markets. The Americas Division has, in addition, responsibility for trade-related discussions in the Organisation of Economic Co-operation and Development (OECD), while the Europe, Africa and Middle East Division is also responsible for multilateral anti- dumping, origin certification and rules of origin matters.
The fifth division is the Systems Division, which is responsible for the textiles export control system, the Textiles Trader Registration Scheme, non-restrained textile
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licensing, the computerisation of the department's licensing systems, the import and export licensing of commodities other than textiles, the rice control scheme, and common services.
The department is assisted in its work on commercial relations by 10 overseas Hong Kong Economic and Trade Offices. All overseas offices are under the administration of the Trade and Industry Branch.
Hong Kong Economic and Trade Offices
These offices seek to promote Hong Kong's economic and trade interests by enhancing understanding of the territory among opinion-formers; closely monitoring developments that might affect the territory's economic and trading interests, such as proposed legislation; and liaising closely with the business and commercial sectors, politicians and the media. They also have a role in promoting Hong Kong's image
overseas.
The Geneva Office represents Hong Kong as a Member of the WTO. It also represents Hong Kong as an observer on the Trade Committee of the OECD in Paris, and is responsible for commercial relations with Switzerland.
The Brussels Office represents Hong Kong's economic and trade interests to the European Commission and, through it, to the member states of the EU. It is also responsible for Hong Kong's economic and trade relations with some other European countries and for encouraging investment from Europe.
The London Office promotes Hong Kong's economic and trade interests in the United Kingdom. It also promotes inward investment in Finland, Norway and Sweden, monitors parliamentary activities of interest to Hong Kong and houses the territory's representative to the International Maritime Organisation.
The offices in Toronto, Tokyo, Singapore and Sydney closely monitor economic and trade developments, proposed legislation and other matters in their host countries which may affect Hong Kong's trade and economic interests.
Offices in Washington, DC, New York and San Francisco are responsible for looking after Hong Kong's economic, commercial and public relations interests in the USA, Hong Kong's largest market and a significant source of industrial and commercial investment in the territory.
Participation in International Organisations
As an integral part of the Asia-Pacific economy and an important regional services centre, Hong Kong has a role to play and a contribution to make in regional economic co-operation. The territory's economic links with the region continued to be significant. In 1996, some 80.1 per cent of Hong Kong's total external trade was conducted with the other 17 member economies of APEC.
During the year, Hong Kong was active in the work of APEC. Policy secretaries of relevant branches attended APEC ministerial meetings on Human Resources Development, Finance, Sustainable Development, Trade, Energy, Small and Medium Enterprises, Telecommunications and Information Industry, and Regional Science and Technology Cooperation. The Financial Secretary represented Hong Kong at the APEC Economic Leaders, Meeting held in Subic, the Philippines, in November.
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◄A technician with Chen Hsong
Machinery Co. Ltd, checks over parts for a plastic injection- moulding machine. The company is a subsidiary of Chen Hsong Holdings Ltd, which sells more than 9 000 sets of such machines each year, or 10 per cent of the global market. It won an Industry Department Certificate of Merit for Quality in 1996. BELOW: Circuit boards are designed at Elec & Eltek Company Limited, a Quality Award winner during the year. It is a leading manufacturer of high-density, double-sided and multi-layered circuit boards.
· More than 300 delegates of 140 member countries and territories of the World Customs Organisation and various international bodies gather in Hong Kong for its 1996 conference in June.
BOTTOM: Hong Kong's Secretary for Trade and Industry,
Ms Denise Yue, and China's Minister for Trade, Madame Wu Yi, pay close attention to a speaker at the Asia-Pacific Economic Co-operation forum in Manila in November.
V
WORLD CUSTOMS ORGANIZATION ORGANISATION MONDIALE DES DOUANE 35th Session of the Policy Commissio 35ème Session de la Commissior de
Politique Générale
1.96 - 14.6.96
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A Korean dance troupe whirls into a traditional performance at the opening of the country's stand at the 1996 Hong Kong Food Fair.
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Agricultural & Fishery Marketing Corporation
KORL
KP1-2
pathut Doosan Ford CO.
▼Models display the latest in high-fashion bridal ware at the Convention and
Exhibition Centre. Textiles remain Hong Kong's largest earner of foreign
exchange, and have for a decade made up about one-third of the territory's domestic exports by value.
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TRADE AND INDUSTRY
Hong Kong is the Co-Vice Chair of the APEC Committee on Trade and Investment (CTI), and the Convener of the Government Procurement Experts Group under the CTI. The territory contributed constructively towards the implementation of the Osaka Action Agenda which was a road map adopted by Economic Leaders in 1995 to achieve the goal of free trade and investment in the Asia-Pacific region by 2020. The Hong Kong PECC Committee, set up in March 1990 to advise on and co-ordinate the territory's participation in and input to the PECC process, continued to participate actively in the council's various task forces and fora, including the Trade Policy Forum, the Pacific Economic Outlook and the Financial Markets Development Project. In April 1996, Hong Kong hosted a series of PECC Meetings including the Co-ordinating Group and Standing Committee Meetings. It was the first time that major PECC meetings had been held in Hong Kong since it became a full member of PECC in May 1991.
In September 1996, a Hong Kong delegation comprising representatives from the academic, business and government sectors participated in the Ninth Trade Policy Forum held in Seoul and another delegation participated in the PECC Co-ordinating Group and Standing Committee Meetings held in Cartagena, Colombia. Hong Kong also attended a symposium organised by the PECC Trade Policy Forum in Singapore in December. A senior directorate officer of the government was seconded to the PECC Secretariat in Singapore as its Director-General for three years from February 1996.
Hong Kong is an observer on the Trade Committee of the Organisation for Economic Co-operation and Development (OECD) which is an important forum for debates and discussions on trade policy matters. Ideas which are first introduced in this committee are often followed up in other international organisations like the WTO and translated into binding multilateral agreements or codes. In March, Hong Kong hosted an OECD Workshop for Dynamic Non-Member Economies on foreign direct investment which focused on the development of multilateral rules aimed at liberalising and protecting international investment.
Hong Kong Trade Development Council
Established by statue in 1966, the Hong Kong Trade Development Council (TDC) is responsible for promoting and expanding Hong Kong's trade with the world. By April 1996 it had a network of 51 offices in 34 countries and regions, effectively serving as an international marketing arm for Hong Kong's manufacturers and service providers and, as an increasing priority, Hong Kong's service industries.
The TDC marked its 30th anniversary in 1996 with a variety of activities. It also worked intensively on two major initiatives. In response to the government's call for the TDC to increase its emphasis on promoting Hong Kong's service industries, the council launched a 10-point plan in March 1996 to promote awareness of Hong Kong's role as a regional hub for services. Four advisory committees were set up in the areas of media and communications, finance, trade-related services and professional services to help the council to better understand the needs of Hong Kong's service sector, and to decide market priorities and promotional strategies.
The message is clear - Hong Kong has a ready supply of services and international expertise which can assist trade expansion, infrastructure development and further economic growth in the rest of Asia and to contribute to the ongoing liberalisation and expansion of China's tertiary sector.
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This message was taken overseas by an ambitious programme which started in May 1996 highlighting Hong Kong's service strengths and confidence in future as Asia's business hub far into the next century. Business seminars and roadshows visited places including South-East Asia, the USA, Australia, Europe and Japan.
The second major initiative concerned the construction of the Hong Kong Convention and Exhibition Centre extension. Good progress was made on the $4.8 billion reclamation and extension project, which began in 1994 and is on schedule for completion in mid-1997. Apart from being a new architectural landmark for Hong Kong, the extension will more than double the Centre's exhibition and convention capacity, strengthening Hong Kong's lead as the trade fair capital of Asia.
On the promotional front, the TDC was again very active in helping Hong Kong companies to penetrate world markets. In 1995-96, the council organised more than 300 promotional events world-wide, providing cost-effective channels for local manufacturers and traders to reach international buyers. These events attracted participation from a record 12 000 Hong Kong companies, generating business worth more than $35 billion. Of the 16 international trade fairs and exhibitions organised by TDC in Hong Kong, five are the largest in Asia. These fairs attracted 7 000 exhibitors and more than 1.1 million visitors, including some 63 000 overseas buyers.
Two-thirds of the council's promotional events in 1995-96 were in new markets, where the focus was on introducing Hong Kong products, building sourcing relationships and creating awareness of Hong Kong's advantages as a trading partner to these markets, including mainland China, South-East Asia, India, the Middle East, South Africa, Russia, Eastern Europe and Central and South America. The newly established TDC offices in these markets served manufacturers and traders by providing much needed local market knowledge and business contacts.
In the established markets of North America and Europe, TDC helped Hong Kong companies to meet the challenges of increasing competition by fostering a more favourable trading environment through expanding and upgrading their presence at established fairs, organising business seminars and developing more high-level business contacts.
To ensure the TDC's trade and information services match Hong Kong's position as Asia's business hub, the council constantly upgrades its information resources and services, making it easier for traders to access its services. Recently introduced facilities included an Electronic Data Centre in the TDC Business Library and the use of cutting-edge computer technology to equip the TDC Fashion and Design Library. A TDC page was also available on the World Wide Web providing 35 million users of the Internet around the globe with easy access to handy information on Hong Kong's economy and the TDC's services.
The council's Trade Enquiry Service matches thousands of companies across the world with Hong Kong buyers and suppliers. The service is particularly useful to Hong Kong's small- and medium-sized enterprises which lack the resources to build their own networks of overseas buyers. In 1995-96, 429 000 enquiries were handled, representing an increase of 21 per cent over the previous year. This computerised service helped users find the right supplier, buyer or agent among 73 000 Hong Kong companies, 346 000 overseas traders and 158 000 mainland firms listed in the TDC's databank.
TRADE AND INDUSTRY
Backed by nearly 30 years' experience, and as a pioneer in trade publishing in Hong Kong, the TDC continued its move into the era of multi-media publishing by producing a CD-ROM supplement to its Hong Kong Electronics magazine. The council's 17 product magazines had a combined global circulation of 2.2 million copies, providing sourcing information and contacts for overseas buyers and helping to strengthen Hong Kong's position as Asia's major sourcing, distribution and trade servicing hub.
The TDC is at the forefront of efforts to promote the territory's design capabilities. Through its Design Gallery, the council continues to encourage and promote design excellence. The Design Gallery also helps the territory's manufacturers and designers to test-market their products. In 1995-96, 21 000 innovative products were featured and an average of 50 000 local and international visitors passed through the Design Gallery each month.
Fashion is a flagship for design promotion. The TDC stages regular salon shows in Hong Kong to launch the collections of local designers, and large-scale catwalk shows both overseas and in the mainland to introduce Hong Kong designers and labels to international audiences. More than 200 individual designers and labels were featured in the TDC's 25 fashion shows around the world in 1995-96.
To raise Hong Kong's profile as an important trading power and to advance its business interests in world markets, the TDC conducts an active programme to develop contacts with international business leaders, policy-makers and the media. The connections built are most helpful in spreading positive messages about Hong Kong and its advantages as a business hub in Asia. In 1995-96, the TDC received 402 business missions from 38 countries, involving more than 4 000 company executives. Targeted business appointments were arranged to help mission members buy, sell, and explore new partnerships and opportunities in the territory.
The Hong Kong Export Credit Insurance Corporation
Created by statute in 1966 to provide insurance protection for Hong Kong exporters against non-payment risks arising from commercial and political events, the Hong Kong Export Credit Insurance Corporation (ECIC) celebrated its 30th anniversary in 1996. Its capital is wholly-owned by the Hong Kong Government which also guarantees its contingent liability, currently standing at $7,500 million.
The ECIC's mission is to encourage and support export trade through the provision of professional and customer-oriented services. This is achieved through, firstly, the development of a positive corporate culture and an open participatory management devoted to excellence, quality and a continuous improvement process and, secondly, the delivery of prompt, effective and comprehensive services to meet the aspirations of Hong Kong exporters.
The corporation provides a wide range of insurance facilities to Hong Kong exporters of goods and services trading on credit terms with overseas buyers and clients for credit periods normally up to 180 days. Among them, the most popular facility is the Comprehensive Shipments Policy which covers export and re-export of goods from the date of shipment. Ranking second is the External Trade Shipments Policy, which covers the export of goods manufactured outside Hong Kong and delivered direct to the buyer whether it is in the buyer's country or a third country.
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The corporation also provides tailor-made facilities or variations of the standard cover to cater for the different needs of each export sector. For export of capital goods, it may also provide medium- and long-term cover for credit periods up to five years or more. Export of services is covered by the Comprehensive Services Policy, which provides the blue-print for tailor-made policies that meet the specific requirement of individual service sectors, such as freight forwarding and advertising. The ECIC's total insured business in 1995-96 reached $17,612 million, representing an increase of six per cent over that in 1994-95. Gross premium income remained stable at $99.56 million although an overall premium reduction of about 10 per cent was introduced in April 1995. Despite higher claims, the corporation achieved a surplus of $29.9 million for the year.
Internationally, the ECIC continued to maintain close co-operation with members of the International Union of Credit and Investment Insurers (the Berne Union) through visits, meetings and workshops. During 1995-96, the corporation streamlined its work procedures and structure to become a compact, leaner and less- compartmentalised organisation for the purpose of providing more efficient and effective services to Hong Kong's exporters.
Other Trade and Industrial Organisations
Various associations in Hong Kong represent the interests of industry and commerce. Among the larger, longer-established and more influential associations are the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce and the Chinese General Chamber of Commerce. Other organisations include the Hong Kong Management Association, the Hong Kong Exporters' Association, the various overseas chambers of commerce in Hong Kong such as the American, Australian, British, Indian and Japanese chambers.
The Federation of Hong Kong Industries is a statutory body, established in 1960 to promote and foster the interests of Hong Kong's industrial and business communities. It has more than 2 600 members. The wide range of federation services include the issue of certificates of origin, the Hong Kong Quality Mark Scheme, ISO 9000 quality management consultancy, intellectual property services, trade enquiries. and industry researches. Seven industrial councils come under its auspices. They cover the chemical and pharmaceutical, electronics, mould and die, plastics, toys, watch and clock, and transport services industries. The federation also runs the annual Young Industrialist Awards of Hong Kong and is responsible for organising the consumer product design category of the Hong Kong Awards for Industry.
The Chinese Manufacturers' Association of Hong Kong (CMA), established in 1934, is a member of the International Chamber of Commerce and has a membership of nearly 4 000. Services rendered include the issue of certificates of origin, trade enquiries, trade promotion services, organisation of seminars and training courses, and operation of two pre-vocational schools on technical education. The CMA encourages product development and quality improvement. The CMA Testing and Certification Laboratories provide technical backup services, including materials and product testing, pre-shipment inspection and technical consultancy services. Since 1989, the CMA has been the organiser of the machinery and equipment design award category of the Hong Kong Awards for Industry.
TRADE AND INDUSTRY
The Hong Kong General Chamber of Commerce is the oldest internationally- recognised trade association in Hong Kong. Founded in 1861, it has around 4 000 members. It organises trade and goodwill missions overseas, receives in-bound delegations, and handles trade enquiries. It is authorised by the government to issue certificates of origin and is the sole local issuing authority for International Association Temporarie Admission Carnets. The chamber is represented on many official advisory committees and bodies. It founded and formed the Hong Kong Article Numbering Association, the Hong Kong Coalition of Service Industries and the Hong Kong Franchise Association; and sponsors the Hong Kong Committee of the Pacific Basin Economic Council.
Established in 1900, the Chinese General Chamber of Commerce is an association of local Chinese firms, businessmen and professionals. It has a membership of around 6 000. Services provided include the issue of certificates of origin and organisation of seminars, exhibitions, trade missions and other trade promotional activities. The chamber also maintains close links with trade organisations in China. Since 1957, it has issued invitations on behalf of the Chinese Export Commodities Fair authorities to local Chinese firms to attend the fair. It has run courses on Hong Kong's economy for senior Chinese government officials since 1982.
The Hong Kong Management Association is a professional management organisation, incorporated in 1960, to improve the efficiency and effectiveness of management in Hong Kong. With a membership of around 11 000, it organises some 1 600 training programmes annually and provides various management services such as the organisation of seminars, award competitions and translation services.
The Hong Kong Exporters' Association was formed in 1955 and has a membership of 400 companies. It disseminates trade information, voices members' concerns and assists in solving trade problems encountered by its members.
Customs and Excise
The Trade Controls Branch of the Customs and Excise Department is responsible for enforcement of the Import and Export Ordinance and its subsidiary legislation relating to certification of origin, import and export controls on textiles and strategic commodities, and the import and export declaration system as well as legislation relating to consumer protection and reserved commodities control.
The branch is the authority responsible for verifying the origin of textiles and clothing products to combat fraudulent declaration of origin and illegal transhipment. It works closely with the Trade Department to safeguard the integrity of the certification of origin and textiles export control systems, which are of vital importance to Hong Kong's continued access to overseas markets.
The branch carries out a vigorous enforcement programme by way of factory and consignment inspections, investigations and prosecutions. In 1996, it carried out 118 409 factory and consignment inspections and 2 057 investigations. It also prosecuted 1 051 defendants, resulting in the imposition of court fines amounting to $10.9 million.
A high level of vigilance and enforcement is maintained against country of origin and transshipment fraud. Enforcement includes the operation of a reward scheme under which a monetary reward will be granted to persons who provide information which leads to successful prosecutions, and the deployment of a task force to target
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suspect shipments. The branch also maintains close contact and co-operates with enforcement authorities in Hong Kong's overseas markets.
The branch plays a key role in the enforcement of consumer protection legislation and co-operates closely with the Consumer Council. Under the Weights and Measures Ordinance, the branch protects consumers against fraudulent or unfair business practices in connection with quantity, weights and measures. Through spot checks on gold and jewellery shops the branch ensures the content of gold and platinum is correctly marked in compliance with the Marking Orders. In the area of product safety, the branch enforces the Consumer Goods Safety Ordinance and the Toys and Children's Products Safety Ordinance by tracking down and identifying unsafe products on sale in Hong Kong and prosecuting offenders. In 1996, the branch carried out 568 spot checks and 307 investigations under the Weights and Measures Ordinance, the Trade Descriptions (Marking) (Gold and Platinum) Orders, the Consumer Goods Safety Ordinance and the Toys and Children's Products Safety Ordinance.
Trade in Endangered Species
The import, export and possession of endangered species are regulated by the Animals and Plants (Protection of Endangered Species) Ordinance, which gives effect to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Licensing policy follows the CITES principles closely. Commercial import and export of highly endangered species are prohibited, and trade in less-endangered species is subject to licensing requirements.
The ordinance is administered by the Agriculture and Fisheries Department, and enforced by the department and the Customs and Excise Department through checking at entry points, markets, shops and restaurants. All suspected offences are investigated and prosecutions are instituted if there is evidence of a breach of the ordinance.
The ordinance was amended in January 1995 to provide for a sharp increase in penalties, which now range up to a maximum fine of $5 million and imprisonment for two years.
Intellectual Property
The Intellectual Property Department, which includes the Trade Marks and Patents Registries, provides a focal point for the development of Hong Kong's intellectual property regime. The department is pursuing proposals for reform of the laws on trade marks, patents, copyright and designs. In November 1995, the Sino-British Joint Liaison Group agreed on the basis for the continued protection of all categories of intellectual property in Hong Kong after June 30, 1997, both under localised laws which are now being prepared, and under international conventions which will continue to apply to Hong Kong after that date.
The Intellectual Property (World Trade Organisation Amendments) Ordinance was enacted in May 1996 to enable Hong Kong to fulfil its international obligations as a member of the WTO to enhance the protection of intellectual property rights. The Patents Bill which provides for the grant of independent patents based on the patents granted elsewhere and for the grant of short-term patents was introduced into the Legislative Council in July 1996. A draft Copyright Bill was put forward for public
TRADE AND INDUSTRY
consultation in November 1996 and a draft Registered Designs Bill in December 1996.
Trade Marks and Patents
The Trade Marks Registry is a registry of original registration. Trade marks are registered in respect of both goods and services under the Trade Marks Ordinance. The procedure in applying for registration is laid down in the Trade Marks Rules. Every mark must satisfy the requirements of the Trade Marks Ordinance before it may be accepted for registration in Hong Kong. During 1996, 16 410 applications were received, 13 378 of which were in respect of goods and 3 032 in respect of services. In all, 11 720 marks were registered in 1996, an increase of 7 per cent compared with 10 940 in 1995. The applicants' principal places of origin were:
2 685
2651
Hong Kong
USA
Germany
Switzerland
536
422
Japan
1 221
France
UK
724
629
Italy
Taiwan
358
275
British Virgin Islands
242
The register had a total of 88 428 marks at December 31, 1996. The Patents Registry is not a registry of original registration. It registers patents that have been granted in the UK or the European Patent Office designating the UK. The Registration of Patents Ordinance provides that any grantee of a UK Patent or an European Patent designating the UK may apply for registration of the patent in Hong Kong within five years from the date of its grant. This confers on the grantee the same privileges and rights as if the patent had been granted in the UK with an extension to Hong Kong. The privileges and rights run from the commencement of the term of the patent in the UK, and continue as long as the patent remains in force there. Hong Kong registered a total of 2 205 patents during the year, an increase of 12.5 per cent compared with 1 960 in 1995.
Copyright
The criminal provisions of the Copyright Ordinance were amended in 1995 to increase substantially the penalties against copyright piracy and to provide a second tier of higher penalties against repeat offenders. The maximum penalties for the possession of infringing copies of copyright works for trade and business purposes are a fine of $25,000 per copy and two years' imprisonment. The penalties for possession of a plate for manufacturing infringing copies of copyright works are a fine of $250,000 and four years' imprisonment.
In May 1996, the criminal provisions were further extended to cover the making of infringing copies outside Hong Kong for export to Hong Kong. In the case of a subsequent conviction the penalties are doubled. Moreover, the management of a body corporate or a partnership engaged in copyright piracy is now also liable to the same penalties. The purpose is to deter criminal copyright infringement on a commercial scale. The provisions of the Copyright Ordinance were also amended in the areas of rental rights, performers' right and customs border measures. These amendments were in keeping with Hong Kong's obligations as a party to the Agreement on Trade Related Aspects of Intellectual Property Rights.
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Layout-Design (Topography) of Integrated Circuits
The Layout-Design (Topography) of Integrated Circuits Ordinance enacted in March 1994 automatically protects original layout-designs (topographies) of integrated circuits of qualified persons. There is no need to register or deposit the layout-design (topography) in Hong Kong.
Consumer Council
Established in 1974, the Consumer Council is a statutory body charged with protecting and promoting the interests of consumers of goods, services and immovable property. The council's chairman, vice-chairman and 20 other members are all appointed by the Governor from a wide cross-section of the community. The council forms committees and working groups to deal with specific tasks in the field of consumer protection.
The council's office is headed by the chief executive with a staff of 114. It is divided into seven functional divisions: administration, complaints and advice, information. and publication, legal affairs, research and testing, survey and trade practices. The council is engaged in a wide spectrum of activities ranging from developing new consumer protection initiatives to conducting studies on the state of competition and trade practices of various business sectors, mediating in consumer disputes to disseminating information and advice and organising consumer education activities, conducting product testing, in-depth studies and surveys to studying and responding to consultation papers and reports on consumer-related issues.
During the year, a key activity of the council was to complete a series of sector- specific competition studies and, based on these findings, to draw up a final report with appropriate recommendations to ensure and promote competition in Hong Kong. Three study reports were released on the sectors of broadcasting in January, telecommunications in March and private residential property in July.
The report on broadcasting, entitled Ensuring Competition in the Dynamic Television Broadcasting Market, made recommendations for a licensing and regulatory regime to promote competition and cater for rapid changes in the television broadcasting sector. The council recommended a regulatory framework based on a conceptual division between carriers and programme or service providers with a streamlined regime. One key feature of the proposed regime was the creation of a new policy branch with integrated responsibilities for broadcasting, tele- communications and information technology to cope with coverage in these fields. The government responded in early July, agreeing to a number of the council's recommendations. It accepted that there was some merit in dealing separately with carriage and content, and pointed out that the two aspects would be regulated separately in the licensing scheme for video-on-demand programme services.
Pointing out that there was already close co-operation between the Broadcasting, Culture and Sport Branch, the Broadcasting Authority and the Office of the Telecommunications Authority, the government felt that there was no present need for a new branch, although it would consider the issue again in the broadcasting review in 1998. Other recommendations accepted by the government included the case for reducing the royalties paid by the two commercial television broadcasting licensees, the removal of restrictions on telecommunications licensees from bidding
TRADE AND INDUSTRY
for licences under the Television Ordinance, and the extension of cross-media ownership restrictions to newspaper owners.
The report on telecommunications Achieving Competition in the Liberalised Telecommunications Market-examined competition issues arising from the liberalisation of the local Fixed Telecommunications Network Services (FTNS) market in July 1995, identified barriers to competition and made recommendations to promote effective competition and maximise benefits to consumers. The study focused on four major areas of the Hong Kong telecommunications industry: market structure, tariff structure, consumer welfare and the regulatory framework. The government responded in September, accepting most of the council's recommendations, many of which have been or are being implemented. For example, the existing FTNS licence contains provisions which take care of the majority of the council's concerns. The government also intended to introduce a bill to amend the Telecommunication Ordinance in the 1996/97 legislative year.
The study on residential property market, entitled How Competitive is the Private Residential Property Market?, sought to assess the degree of competition in this market. Recommendations were drawn up to address the imperfect competition found in this market and to lower the barrier to entry by new entrants. Other recommendations included improving residential land and property supply, enhancing marketability of older properties and increasing consumer access to property information. The government will respond to this report within six months of its release.
In February, the government responded to the council's competition report on the domestic water heating and cooking fuel market, published in August 1995. The government agreed with the council that, if feasible, the common carrier system would inject competition, to consumers' benefit, into the domestic gas supply market. A study of the feasibility of introducing a common carrier system in Hong Kong would be commissioned. An Energy Advisory Committee would be set up to advise the government on energy policy and other related matters.
At the end of October, the council released a main study report on competition policy. The report emphasised that a comprehensive competition policy was essential to Hong Kong's economic future, and put forward a set of recommendations for the enactment of a competition law in Hong Kong. The government will respond to this report within six months of its release.
Since its establishment in November 1994, the Consumer Legal Action Fund (CLAF) has granted assistance to various groups of consumer seeking redress. During the year, the CLAF investigated 44 applications for assistance. Assistance was granted to two groups of consumers, involving modelling school and real property transactions, and action to assist these consumers is being pursued by the fund. The council is the trustee of the fund and is advised by a management committee and a board of administrators on the eligibility and merits of the cases seeking assistance. Vital consumer protection legislation has been enacted or amended in recent years, notably the Consumer Goods Safety Ordinance, the Sale of Goods (Amendment) Ordinance, the Supply of Services (Implied Terms) Ordinance and the Unconscionable Contracts Ordinance. To enhance public awareness of the legal rights afforded under the law, the council launched a publicity drive which was conducted mainly through Announcements of Public Interest broadcasts at regular
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intervals on the local TV channels. The council also continued to support the campaign to use fewer plastic bags in both the retail and supermarket sector and selected wet markets.
During the year, the council responded to more than 162 000 consumer enquiries and processed 8 778 consumer complaints including 740 complaints from tourists. The settlement rate of consumer complaints stood at an average of 85 per cent of justifiable cases. The council also organised about 250 consumer educational activities at district level through its 16 consumer advice centres.
In 1996, CHOICE maintained an average monthly circulation of 28 000 copies and was a regular source of consumer information to the public, as well as providing a stimulus for media coverage on a wide range of consumer issues and concerns. The council conducted a total of 30 product tests, 56 in-depth studies and 16 survey projects with a view to collecting independent and impartial information to assist consumers to make the right choice. Some tests were conducted specifically in response to the enactment of new legislation on product safety.
The council works closely with the government through the Trade and Industry Branch, and trade and professional bodies and was increasingly consulted on major policies affecting the interests of consumers such as the review on rice control scheme, and amendments to the Banking Ordinance. The council, as an executive and council member of the Consumers International, maintains regular contacts with its counterparts in China and overseas.
Metrication
The government's policy on metrication seeks to promote and facilitate the progressive adoption of the International Systems of Units (SI) in Hong Kong. The Metrication Ordinance, enacted in 1976, provides for the eventual replacement of non-metric units by SI units in all legislation in the territory. Government departments use metric units exclusively.
The Metrication Committee, comprising representatives of industry, commerce, management and consumer bodies, and government officials, is the focal point of liaison on all matters concerning metrication. It advises on and encourages the commercial and industrial sectors to develop metrication programmes.
During the year, the committee continued to direct its efforts towards the retail sector and young families. A territory-wide Billboard Design Competition was organised for secondary school students in order to increase their awareness of the adoption of metrication in their daily life. In August 1996, the committee took part in the 7th Food Expo which was one of the major events of the Hong Kong Trade Development Council. The metric conversion dials distributed and the educational games at the Metrication Committee counter in the Food Expo were well received by thousands of visitors. Fifteen boy scouts were appointed as Metrication Ambassadors during the year in appreciation of their contribution towards various promotional activities organised by the committee.
Printing
A reputation for good printing quality, quick and reliable delivery, and competitive prices continues to boost the international status of Hong Kong's printing industry. The territory is a leading centre for printing and publishing, with 4 770 printing
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establishments employing 44 436 people, and more than 200 publishing houses, including many from overseas which have set up offices or regional headquarters in Hong Kong. Hong Kong printers are investing substantially in advanced machinery and equipment, and are taking positive steps to develop the United States market. The industry constitutes 17.5 per cent of all manufacturing establishments and 13.6 per cent of employment in the manufacturing sector. A majority of the printing factories (71.4 per cent) are engaged in general jobbing work, and most of the remainder deal with related work, such as typesetting and book-binding. There are also 36 newspaper printers.
Use of the latest technology, especially computerised equipment, has enabled the industry to become highly specialised. The local electronics industry contributes to the plant and equipment of both the more sophisticated printing companies and of publishers, who are becoming increasingly involved in the use of data and word- processing systems for editorial production and stock control. The output data can be converted or interfaced with typesetting equipment at a realistic cost, to provide publishers with the additional benefits of fast and cost-efficient printing. Increasingly, Chinese language word-processors are being installed to meet demand.
Domestic exports of printed matter decreased in value terms by 3.1 per cent over the previous year. Material printed locally with a total value of $4.758 billion was exported, with the USA, China, the UK, Taiwan, and Australia being the main customers. Books, pamphlets, newspapers, journals and periodicals accounted for 70 per cent of exports of printed products. The biggest customers for this reading material were the USA, the UK and Taiwan. Overall, the printing and publishing industries contributed 8 per cent of the manufacturing sector's gross output.
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THE government's employment policy aims to make the best use of Hong Kong's manpower resources; to promote safety and health in the workplace; to maintain a well-trained workforce; to foster and maintain good labour relations; to improve the rights and benefits of the workforce in line with Hong Kong's social and economic developments; and to help job-seekers find employment.
During 1996, the government expanded the job-matching and placement services to help local workers find jobs and stepped up enforcement action to tackle illegal employment. The Supplementary Labour Scheme was implemented to replace the General Labour Importation Scheme. The new scheme allows importation of workers, on a case-by-case basis, for vacancies which employers can prove are difficult to fill locally.
To ensure that the workforce is equipped with the necessary skills to cope with the economy's dynamic and changing needs, the government initiated two comprehensive reviews, one on the directions and strategies of vocational training and the other on employee retraining. Legislative proposals were introduced to improve protection to employees' benefits, such as maternity protection, long-service payment and sickness allowances, some of which were enacted. A new Occupational Safety and Health Bill was introduced which sought to extend the protection of the safety and health of employees beyond the industrial sector to all work places.
Labour Market
Employment in all major service sectors remained on an uptrend during the year but declined further in the manufacturing sector as the structural shift in manpower resources continued. In the third quarter of 1996, the labour force was 1.9 per cent larger than in the corresponding period of 1995. The territory's labour force stood at 3.1 million, of whom 61 per cent were male and 39 per cent were female. The seasonally adjusted unemployment rate for the third quarter of 1996 was 2.6 per cent while the underemployment rate was 1.4 per cent, compared with 3.5 per cent and 2.5 per cent respectively a year earlier.
Of the employed, the majority (78.7 per cent) were engaged in the service sectors - 34.7 per cent in wholesale, retail and import/export trades, restaurants and hotels; 11 per cent in transport, storage and communications; 11.6 per cent in financing, insurance, real estate and business services; and 21.4 per cent in community, social and personal services. About 11.4 per cent were working in the manufacturing sector. A structural shift in employment during the past decade has meant establishments in the service sectors now employ six times as many workers as the manufacturing
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sector. In September 1996, 1931 983 persons were engaged in establishments in the various service sectors (not including most of the self-employed and those engaged in the provision of personal services), an increase of 3.1 per cent over the corresponding figure in 1995. In contrast, only 327 464 persons were engaged in manufacturing sector establishments (excluding outworkers), a decrease of 15.2 per cent compared with a year earlier.
With this continuing shift in employment, many manufacturing workers have been displaced. The Employees Retraining Board, set up in 1992 to retrain affected workers, had put 154 608 workers through its retraining programmes by the end of the year.
The import and export trade was the largest employer in the service sectors, with 535 553 workers in September 1996. Other major service industry groups include the retail trade, restaurants and business services, which had 207 169, 186 970 and 152 409 employees, respectively.
Despite declining employment, the clothing industry remained the largest manufacturing industry, employing 89 632 persons in September 1996. Establishments in the printing and publishing industry and the electronics industry were the next two largest groups of employers in manufacturing, employing 44 436 and 30 944 persons, respectively. Details of the distribution of establishments and persons engaged by selected major industry group are shown at Appendices 21 and 22, respectively.
Wages
Wage rates are calculated on a time basis, either daily or monthly, or on an incentive basis according to the volume of work performed. The average wage rate for employees up to the supervisory level, including daily-rated and monthly-rated employees, increased by 6.4 per cent in money terms between September 1995 and September 1996. After discounting for rises in consumer prices, the average wage rate increased by 1.2 per cent in real terms.
In September 1996, the average monthly wage rate for the supervisory, technical, clerical and miscellaneous non-production workers in the wholesale, retail and import and export trades, restaurants and hotels sector was $10,804. This represented an increase of 5 per cent in money terms, or a decrease of 0.1 per cent in real terms, compared with the same period of 1995.
Over the same period, the average wage rate in the manufacturing sector rose by 7.5 per cent in money terms, or 2.2 per cent in real terms. At the craftsman and operative levels in the manufacturing sector, 75 per cent of workers received a daily wage of $229 or more in September 1996; while 25 per cent received $361 or more. The overall average daily wage was $309, or $7,853 per month, for these craftsmen and operatives.
Employee Benefits
The Employment Ordinance stipulates employment-related benefits and entitlements which include rest days, statutory holidays, annual leave, maternity leave, sickness allowance, severance payment and long service payment. Many employers also provide additional fringe benefits and bonuses, such as a year-end bonus, to their employees.
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The government will continue to regulate voluntarily established occupational retirement schemes under the Occupational Retirement Schemes Ordinance. By year's end, 14 923 schemes had been registered and 1 859 schemes were exempted. All registered schemes must comply with the requirements and regulations of the ordinance.
Labour Administration and Services
The Labour Department, headed by the Commissioner for Labour, implements labour policies and labour legislation for the promotion of harmonious labour relations and responsible trade unionism, the safeguard of employees' rights and benefits and the protection of the safety, health and welfare of the working community. It also provides free employment services to employers and job-seekers.
Labour Conditions
The employment of children under 15 years old is prohibited in industrial undertakings. Children aged 13 and 14 years may be employed in non-industrial establishments, subject to the condition that they attend full-time schooling if they have not yet completed three years of secondary education and other provisions which are aimed at protecting their safety, health and welfare.
The Labour Inspectorate of the Labour Department is responsible for monitoring employers' compliance with requirements in the Employment Ordinance relating to the employment of women, young persons and children, payment of wages, annual leave and holidays, sickness allowance and maternity protection. The ordinance applies equally to local and foreign workers.
Labour Legislation
As the principal adviser to the government on labour affairs, the Commissioner for Labour initiates proposals to enact new labour laws and amend existing ones. Labour legislation has been enacted which, supplemented by administrative measures, enables Hong Kong to maintain internationally accepted standards.
During 1996, 16 pieces of labour legislation were enacted. Among them, the Factories and Industrial Undertakings Ordinance was amended to empower the Commissioner for Labour to issue suspension or improvement notices to improve industrial safety.
The Employment Ordinance was amended to increase the rate of sickness allowance from two-thirds to four-fifths of an employee's normal wages. The Protection of Wages on Insolvency Ordinance was also amended to extend the period of making application to the Protection of Wages on Insolvency Fund from four to six months from cessation of employment and to raise the maximum payment in respect of arrears of wages severance payment and wages in lieu of notice.
The Employees' Compensation Ordinance was amended to increase the rate of periodical payment from two-thirds to four-fifths of an employee's normal earnings and to remove the waiting period of three days of temporary incapacity for entitlement to periodical payment. Another amendment was made to empower the Commissioner for Labour to assess compensation by issuing certificates of assessment for all cases involving permanent loss of earning capacity.
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Enforcement of Legislation
During 1996, there were 7 674 prosecutions for breaches of various ordinances and regulations administered by the Labour Department. Fines totalling $47,670,180 were imposed.
Labour Advisory Board
The Labour Advisory Board is a non-statutory body set up to provide a forum for consultation on labour policies and legislation. It also monitors the Supplementary Labour Scheme. Six of the 12 members represent employers and another six represent employees. The Commissioner for Labour, or her deputy, is the ex officio chairman.
Under the board, committees have been set up on special subjects including employment services, industrial safety and health, labour relations, employees' compensation and the implementation of international labour standards.
International Labour Standards
The International Labour Conventions of the International Labour Organisation prescribe standards on matters such as labour administration, employment rights, and occupational safety and health as models for the member states. These conventions have a significant influence on the formulation of labour legislation in the territory and 49 are currently applied in Hong Kong. This compared favourably with most members of the International Labour Organisation in the region.
Trade Unions
Trade unions must be registered under the Trade Unions Ordinance, which is administered by the Registrar of Trade Unions. Once registered, a trade union becomes a body corporate and enjoys immunity from certain civil suits.
During the year, 22 new unions were registered. At the end of the year, there were 577 unions, comprising 535 employees' unions, 25 employers' associations and 17 mixed organisations of employees and employers.
About half of the employees' unions are affiliated to one of the five major labour organisations registered under the Societies Ordinance: the Hong Kong Federation of Trade Unions (113 affiliated unions with about 229 400 members), the Hong Kong and Kowloon Trades Union Council (65 unions, 27 600 members), the Hong Kong Confederation of Trade Unions (39 unions, 84 800 members), the Federation of Hong Kong and Kowloon Labour Unions (31 unions, 21 200 members) and the Federation of Civil Service Unions (29 unions, 12 400 members).
Labour Relations
In 1996, the Labour Relations Division of the Labour Department provided conciliation service in 226 trade disputes which involved 17 work stoppages resulting in a loss of 2 709 working days. The division also handled 22 840 claims for wages and other employment-related benefits or entitlements.
The Labour Relations Ordinance provides the machinery for special conciliation, voluntary arbitration and board of inquiry to settle trade disputes which cannot be resolved through ordinary conciliation.
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The Labour Department promotes harmonious labour-management relations through a variety of activities such as promotional visits and talks to individual establishments, employers' associations and employees' trade unions; training courses, workshops, seminars and exhibitions. It also publishes newsletters, information leaflets and pamphlets on a wide range of labour matters.
The Labour Tribunal
The Labour Tribunal is part of the Judiciary and provides a quick, inexpensive and informal method of adjudicating various types of disputes between employees and employers which are not within the exclusive jurisdiction of the Minor Employment Claims Adjudication Board.
In 1996, it heard 7016 cases involving employees as claimants and a further 430 cases initiated by employers. The presiding officers awarded more than $129 million. Of these cases, 88.2 per cent were referred by the Labour Relations Division of the Labour Department after unsuccessful conciliation attempts.
Minor Employment Claims Adjudication Board
The Minor Employment Claims Adjudication Board adjudicates claims under the Employment Ordinance and in accordance with individual employment contracts. All employment claims involving not more than five claimants for a sum of money not exceeding $5,000 per claimant fall within the jurisdiction of the board.
During the year, the board heard 1 172 cases. Of these, 1 019 cases were filed by employees and 153 by employers. The board awarded a total of about $2.53 million on these claims.
Protection of Wages on Insolvency Fund
The Protection of Wages on Insolvency Fund is financed by an annual levy of $250 on each business registration certificate. Employees who are owed wages and other employment termination benefits by their insolvent employers may apply to the fund for ex gratia payment.
During the year, the fund's coverage was substantially improved. Previously, it covered wages not exceeding $18,000 accrued during a period of four months preceding the date of application; wages in lieu of notice for termination of up to $6,000 or one month's wages, whichever was less; and severance payment up to $24,000, plus 50 per cent of any entitlement in excess of $24,000. In February, the respective payment limits were increased from $18,000 to $36,000, $6,000 to $22,500 and $24,000 to $36,000. In December, the Protection of Wages on Insolvency Ordinance was amended to extend the period for employees to apply for ex gratia payment from four to six months, and to count the four-month coverage period of arrears of wages from the last day of service instead of from the date of application. The fund received 8 372 applications and paid out a total of $180.9 million to 7 285 applicants in 1996.
Finding Employment
The Employment Services Division of the Labour Department provides free recruitment assistance to employers and placement service to job-seekers. In February 1996, the division strengthened its employment services through extending
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the Job Matching Programme, which aims to provide intensive job-matching and counselling services, to all unemployed job-seekers irrespective of age.
The division continued to operate the Outreaching Placement Service which offered immediate employment assistance to workers affected by major retrenchments. The division's Special Placement Team also provided assistance to local construction workers seeking work in contracts under the New Airport and Related Projects. All these programmes were well received by job-seekers and employers. In addition, two large-scale job bazaars were organised jointly with the Employees Retraining Board and major employers associations in April and October 1996 so that job-seekers can better understand the labour market and make job applications with employers on the spot. The events attracted 4 800 visitors.
During the year, 118 844 job-seekers registered with the division while employers reported 105 631 vacancies. The division made 189 618 job referrals and placed 26 896 persons in employment.
Employees Retraining Scheme
The Employees Retraining Board was set up in 1992 to provide skills-retraining for local employees to cope with structural changes in the economy. It has representatives from the government, employers, employees, training institutions and manpower planning practitioners.
Training is delivered through a network of approved training bodies, with funding support for approved courses from the Employees Retraining Fund. The fund received a capital injection of $300 million from the government when it was set up. Its regular income comes from a levy charged on employers employing foreign workers under two labour-importation schemes at the rate of $400 per worker per month. In May 1996, the government injected another $300 million into the fund to ensure that it had the financial resources to expand its programmes.
The Employees Retraining Scheme offers a wide variety of day and evening courses for local employees aged 30 and over. The courses fall into four main categories: job search skills, job-specific skills, general skills and skills upgrading. An important feature of the scheme is that employers, as end users, are encouraged to participate as much as possible in the design and delivery of the programmes. Apart from skills upgrading courses, all courses are free and retrainees receive a retraining allowance of $4,000 per month for attending full-time courses. By the end of 1996, retraining had been provided to 154 608 persons under the scheme.
With the Employees Retraining Board entering its fourth year of operation, the government initiated a review of the role, operation and future direction of the scheme. The key findings and recommendations of the review were published in December for public consultation.
Employing the Disabled
The Selective Placement Division of the Labour Department helps disabled persons integrate into the community through open employment. It provides a free employment counselling and placement service for the hearing impaired, sight impaired, physically disabled, chronically ill, mentally retarded and mentally restored persons.
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During the year, the division launched a series of activities to promote the employment of the disabled. These included exhibitions; seminars; presentation of awards to outstanding employers and disabled employees; special campaigns to canvass vacancies; and publication of quarterly newsletters, pamphlets and guidebooks. With the assistance of Radio Television Hong Kong, a new series of television programmes was produced to promote the working abilities of the disabled and their integration into the community.
In June, the Governor chaired the Third Summit Meeting on Open Employment of People with a Disability, which was attended by major employers' associations and groups representing the disabled in Hong Kong. Promotional and publicity activities were launched after the meeting to enhance the employment opportunities of the disabled. Many statutory bodies and major organisations also responded to the Governor's appeal to set voluntary targets on employment of the disabled.
Careers Guidance
The Careers Advisory Service of the Labour Department, through the promotion of careers education, helps young people choose a career best suited to their talents, interests and abilities. It also provides careers guidance teachers with back-up information.
The service operates two careers information centres disseminating careers information through written and audio-visual materials. A new Careers Info Express bulletin board system was set up in August. Through computers equipped with modems, the public can have easy access to the careers materials produced by the department as well as the full catalogue of careers information available at the
centres.
The service also organises a wide range of activities to arouse the careers awareness of young people. The sixth Education and Careers Expo organised in February attracted nearly 180 000 visitors. More than 141 000 students took part in the 15th Careers Quiz, organised in November. Throughout the year, the service arranged student group visits to the careers information centres and various commercial and industrial establishments.
Foreign Workers
The Immigration Department controls the entry of foreign workers. Foreigners may work or invest in Hong Kong if they possess a special skill, knowledge or experience of value to and not readily available in Hong Kong, or if they can make a substantial contribution to the economy.
The department applies the policy in a flexible manner. Genuine businessmen and entrepreneurs are welcome to establish a presence in Hong Kong, bringing with them capital and expertise. Qualified professionals, technical staff, administrators and managerial personnel are also admitted with minimum formalities. During the year, 14 384 professionals and persons with technical, administrative or managerial skills from more than 50 countries were admitted for employment.
The government's policy on importation of labour is that:
(a) Local workers must be given priority in filling job vacancies available in the job
market.
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(b) Employers who are genuinely unable to recruit local workers to fill their job
vacancies should be allowed to bring in imported workers.
Hong Kong has three labour importation schemes the Supplementary Labour Scheme, the Special Labour Importation Scheme for the New Airport and Related Projects and the Pilot Scheme for the entry of professionals from the People's Republic of China (PRC).
The Supplementary Labour Scheme commenced on February 1, 1996. All applications are considered on a case-by-case basis. To ensure priority of employment for local workers, each application for imported workers has to pass three tests before it is submitted to the Secretary for Education and Manpower for a decision- newspaper advertisements, job-matching by the Labour Department for two months (plus tailor-made retraining course for workers if possible) and consideration by the Labour Advisory Board. In 1996, a total of 281 visas were approved. The government will review the scheme when that figure reaches 2 000.
The Special Importation of Labour Scheme for the New Airport and Related Projects was introduced in May 1990 to facilitate the timely completion of the new airport and related projects. It operates under a quota ceiling of 17 000. All contractors who have been awarded contracts for the new airport and related projects are eligible to apply for imported workers under the scheme. To safeguard the interests of local workers, each application has to comply with several basic requirements. These include: the number, type and duration of employment of imported workers must be compatible with the manpower requirements of the works contract in question; the wage offered to the imported worker must be no less than that offered to a local worker in a comparable position; the employer must go through a four-week local recruitment test for the job vacancy at both the Labour Department and the Airport Core Projects Job Centre to give priority of employment to local workers; and the imported worker is to remain only under the direct employment of the same employer under the specific works contract(s) up to the duration of the employment contract and to engage only in work stipulated in such a contract. By December 1996, 5 288 imported workers made up about 16 per cent of the total workforce for the projects.
The Pilot Scheme for the entry of PRC professionals was introduced in March 1994 with a quota ceiling of 1 000 for the entry of graduate professionals from any of the 36 key PRC tertiary institutions, who possess PRC-related knowledge, expertise and experience which are in demand but not readily available in Hong Kong. All Hong Kong companies can apply under the scheme. At the end of the year, 705 out of the total of 2 216 applications had been approved and 515 employment visas issued. The government is conducting a comprehensive review of the scheme.
Foreign Domestic Helpers
The entry of foreign domestic helpers is subject to the conditions that they have experience in that field of work, that their employers are bona fide Hong Kong residents prepared to offer reasonable terms of employment including wages and accommodation, and that the employers are willing to provide for the helpers' maintenance in the territory as well as the costs of repatriation to their country of origin.
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In the past few years, the demand for foreign domestic helpers has increased steadily. In 1996, there were 164 299 such helpers in Hong Kong, representing an increase of 4.63 per cent compared with 157 026 in 1995. About 80 per cent of these domestic helpers were citizens of the Philippines.
Employment Agencies
The Labour Department's Employment Agencies Administration enforces Part XII of the Employment Ordinance and the Employment Agency Regulations monitoring the operation of employment agencies through licensing. It issued 1062 licences in 1996.
Employment Outside Hong Kong
The External Employment Service of the Labour Department administers the Contracts for Employment Outside Hong Kong Ordinance in safeguarding the interests of local employees engaged to work outside Hong Kong for foreign employers. All such employment contracts involving manual workers, or non-manual employees with monthly wages not exceeding $20,000, must be attested by the Commissioner for Labour. The department attested 16 contracts in 1996.
Industrial Safety
The Factory Inspectorate of the Labour Department enforces the Factories and Industrial Undertakings Ordinance and its subsidiary regulations. This provides for the safety and health of workers in factories, catering and cargo-handling establishments, building and engineering construction sites and other industrial undertakings. Advice and assistance are given to management on ways of providing and maintaining a safe and healthy working environment. The inspectorate also investigates industrial accidents and dangerous incidents.
Following a comprehensive review on industrial safety in Hong Kong, a new Occupational Safety and Health Branch was created in the Labour Department in 1996 with two distinct functions: occupational safety and occupational health. Besides strengthening its safety and health promotion and enforcement programme, the Factory Inspectorate responsible for occupational safety also assists in the formulation of safety management legislation and regulations.
The Factories and Industrial Undertakings Ordinance was amended in July to empower the Commissioner for Labour to issue improvement notice and suspension notice. The notices are issued to proprietors of industrial undertaking and contractors to rectify breaches of safety legislation within a specified period, or suspend immediately any hazardous process or use of dangerous equipment that may cause an imminent risk of serious bodily injury to workers.
A new Occupational Safety Charter was launched in September with active participation of worker unions, employer associations and professional bodies. It affirms the rights of employees to work in a safe and healthy environment and the employers' obligation to reduce the employees' exposure to risks of injury or ill health.
A new Occupational Safety and Health Bill was introduced into the Legislative Council in December. It aims to protect the safety and health of non-industrial sector employees at work.
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In conjunction with the Information Services Department, a major publicity campaign was launched to promote industrial safety and health. Television and radio announcements of public interest were produced. Symposia and seminars were held on safety and health management, lift and escalator safety, and safety and health education and training.
To promote safety management and self-regulation, the Safety Promotion Section of the inspectorate helps major contractors to set up safety committees involving employers and employees. By year's end, the section had helped set up 352 safety committees. The section also assists management and workers to identify and assess hazards at work, and to devise safety and health programmes.
The Operations Division emphasises regulatory activities in high-risk areas of factories, catering establishments and construction sites. Special enforcement campaigns were launched to monitor high-risk working conditions in workplaces. During these campaigns, 15 229 factories, 471 catering establishments and 817 construction sites were inspected.
Special teams were set up to inspect construction sites at the new airport projects. They helped company and site level safety committee meetings formulate safety policies, review safety standards and procedures, and monitor safety performance on site. Construction site safety award schemes were launched for the construction industry and the airport core programme project.
The Industrial Safety Training Centre of the Planning and Training Division conducts legislation-related safety training courses for workers, supervisors and managers. It gives safety talks to university and post-secondary students and to other organisations. The centre continued to help the Hong Kong Polytechnic University and the City University of Hong Kong organise evening courses leading to the award of certificates in industrial safety. It also helped the Construction Industry Training Authority run certificate courses for construction safety officers.
Boilers and Pressure Vessels Safety
The Boilers and Pressure Vessels Division administers the Boilers and Pressure Vessels Ordinance to ensure the safe use and operation of such equipment. In November 1996, the enforcement of gasholder examination was transferred to the Gas Authority after enactment of the Gas Safety Ordinance.
The division conducts regular spot checks to ensure pressure equipment in use meets the required safety standards; investigates accidents involving pressure equipment; conducts examinations for the issue of certificates of competency to boiler and steam receiver attendants and promotes equipment safety through literature and seminars. The division also gives the Fire Services Department technical advice on the approval and initial inspections of pressurised cylinders and storage installations for compressed gases.
The division processed 2 601 equipment registration applications, inspected 5 759 factories and 4908 items of pressure equipment, and issued 417 certificates of competency and endorsements during the year. It also continued to assist the Haking Wong Technical Institute and the Occupational Safety and Health Council in organising training courses on the safe operation of pressure equipment. Two publicity safety seminars were held, attended by 294 persons, and one safety training course was conducted.
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Occupational Health and Hygiene
The Occupational Health Service of the Occupational Safety and Health Branch of the Labour Department provides an advisory service to the public and the Government on worker health and workplace hygiene, and complements the Factory Inspectorate in supervising health standards and practices in the industrial sector. The Occupational Hygiene Division's major responsibility is to investigate notified occupational diseases and potential health hazards reported by the Factory Inspectorate and to determine preventive action. Surveys and epidemiological studies on health and hygiene conditions were completed. The mercury hazard in school dental clinics, use of azo-dyes in the dyeing industry, solvents in toy factories and petrol filling stations, use of ethylene oxide gas in hospitals, microwaves in the catering industry and the handling of chemicals in water treatment plants were all surveyed.
An enquiry service is available to the public on occupational health and hygiene problems. Talks on health education were arranged on request. A series of booklets and codes of practice on occupational health and hygiene have been published for the promotion of occupational health and protection of people at work.
The Occupational Medicine Division undertakes medical examination on persons exposed to hazardous work such as ionising radiation and government employees engaged in diving, asbestos work and pest control. It runs an occupational health clinic providing consultative services to workers with work-related illnesses and provides medical support services to decompression sickness patients treated in the decompression chamber. It also handles medical clearance for employees' compensation cases. Its occupational health officers are appointed to various medical assessment boards.
Occupational Safety and Health Council
The Occupational Safety and Health Council aims to promote a safer and healthier working environment through education and training; promotion on the use of modern technology; dissemination of technical knowledge; provision of consultancy services; and encouragement of co-operation and communication among government and non-government bodies with similar goals. The council, a statutory body, is financed by a levy on the premium of employees' compensation insurance policies in Hong Kong.
The council continued to inculcate the safety culture in various sectors of the community in line with the recommendations made in the Consultation Paper on the Review of Industrial Safety in Hong Kong. During 1996, it introduced initiatives in providing safety and health training for managers, supervisors and workers in establishing effective and efficient safety and health management programmes. These courses include safety auditing, safety and health for small business, ergonomics, occupational hygiene, and the inspection and examination of boilers and pressure equipment. The council also produced videos, CD-ROM and other teaching materials to help industries train their workers. Tailor-made courses were also offered to public utilities, building contractors, hotels, manufacturing firms, hospitals, building management companies, etc. A total of 10 000 persons attended the council's courses in 1996.
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In changing the safety attitude of the younger generation, the council developed an occupational safety and health training package with the Curriculum Development Institute of the Education Department for secondary school students.
During the year, the council organised 25 seminars, conferences and symposia on current topics of safety and health and undertook several research projects, such as manual lifting and hearing conservation in non-manufacturing sectors. It continued to provide consultancy services, in particular for small establishments on a cost- recovery basis. A safety auditing office was established to manage the Independent Safety Audit Scheme for government and Housing Authority construction projects. Campaigns to arouse public interest included 'Occupational Safety and Health Week' held in October and November. There was increased co-operation from district-based organisations in staging promotional activities.
The council produced safety and health literature, codes of practice and guidebooks, a bi-monthly journal Green Cross, safety advice pamphlets, posters and bulletins for individual industries. A comprehensive library with a collection of up-to- date videos, journals, microfilms, books and magazines on occupational safety and health is open for public use. The council's database can also be accessed via the fax- on-demand and Internet network. The fax-on-demand number is 2316 2576, and the council's home page is http://www.oshc.org.hk/.
The Occupational Safety and Health Employees' Participation Scheme continued to offer financial assistance to employees' organisations running safety and health activities. During 1996, 69 employees' organisations received subsidies under the scheme.
Employees' Compensation
The Employees' Compensation Division of the Labour Department administers the Employees' Compensation Ordinance and the Pneumoconiosis (Compensation) Ordinance. It ensures that injured employees and dependants of deceased employees covered by the Employees' Compensation Ordinance obtain compensation from their employers for occupational diseases, injuries or deaths caused by accidents arising out of and in the course of employment.
It also ensures that persons covered by the Pneumoconiosis (Compensation) Ordinance obtain speedy compensation from the Pneumoconiosis Compensation Fund. It administers a scheme to provide quick financial relief in the form of interest- free loans to employees injured at work and to dependants of employees who die from work-related accidents.
Employees with work-related injuries which are likely to result in permanent incapacity are assessed by Employees' Compensation Assessment Boards. The boards sit in 12 major hospitals throughout the territory.
During the year, 119 pneumoconiosis cases were awarded compensation from the Pneumoconiosis Compensation Fund for the first time. The Pneumoconiosis Compensation Fund Board, established to administer the fund, also financed rehabilitation programmes for pneumoconiosis sufferers, research, educational and publicity programmes to enhance awareness of pneumoconiosis and to promote prevention of the disease. Pneumoconiosis sufferers diagnosed before January 1, 1981, who are not covered by the Pneumoconiosis (Compensation) Ordinance, receive ex gratia payments on a quarterly basis from the government.
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The Occupational Deafness Compensation Scheme compensates employees suffering from occupational noise-induced deafness. It is administered by the Occupational Deafness Compensation Board which was established in June 1995. During 1996, compensation payments totalling $36,840,000 were awarded to 268 occupational deafness cases.
The Employees Compensation Assistance Scheme makes payments due to an injured employee or dependants of a deceased employee where an employer defaults or an insurer becomes insolvent. It also covers claims from employers who fail to obtain indemnity from their insolvent insurers.
Telephone Enquiry Service
The Labour Department's General Enquiry Telephone Service handles enquiries on labour legislation and matters relating to the employment of local and imported. workers, and provides information on various services offered by the department. Callers are guided by the computer-operated answering facility to select pre-recorded messages from a wide range of topics. They can also obtain information leaflets through the system if they have a fax machine.
The system, with Cantonese, Putonghua and English language options, operates around the clock. Staff operators deal with more complicated enquiries during office hours. The service handled 1 709 735 calls in 1996.
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9 PRIMARY PRODUCTION
AGRICULTURE is a comparatively small sector in Hong Kong. Farming is largely undertaken on the urban fringes and only about 3.1 per cent of the land area is under cultivation. In 1996, local production accounted for 17 per cent of vegetables, 22 per cent of live poultry, 8 per cent of live pigs, 11 per cent of freshwater fish and 71 per cent of all live and fresh marine fish consumed.
Each day, Hong Kong people consume about 900 tonnes of rice, I 420 tonnes of vegetables, 7 110 pigs, 300 head of cattle, 260 tonnes of poultry, 460 tonnes of fish and 1680 tonnes of fruit. About 45 per cent of Hong Kong's food requirements is imported from China.
The Hong Kong Government does not give direct subsidies to the local agricultural industry or attempt to protect it from the free operation of market forces. It does, however, provide a variety of infrastructural and technical support services to facilitate local agricultural development.
Being responsible for the implementation of government policies on agriculture and fisheries, the Agriculture and Fisheries Department provides infrastructural support services including wholesale marketing facilities, irrigation and drainage works, technical and development advice, administration of agricultural and fisheries loan funds, and development programmes such as the accredited farm scheme, the agricultural land rehabilitation scheme, and the moist pellet feed scheme for mariculture. Local production statistics are given at Appendix 25.
The Agricultural Industry
Local agriculture is directed towards the production of high quality fresh food through intensive land use. This has resulted in the change from traditional rice farming to small but intensive crop and livestock farming over the past decades. The most common crops cultivated are leafy vegetables and high-value cut flowers. Production was valued at about $475 million.
Pigs and poultry are the principal animals reared for food. Livestock production has declined in recent years due to the implementation of a livestock waste control scheme. The trend is towards fewer but bigger farms. The value of locally-produced pigs in 1996 amounted to $394 million and that of poultry, including chickens, ducks, pigeons and quails, amounted to $392 million.
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Strong competition from imports, land and labour constraints, and progressive implementation of environmental pollution controls, have forced the agricultural 129
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sector to modernise its farming methods. The department has been researching modern techniques suitable for application in Hong Kong.
To increase the competitiveness and value of local produce, farmers are encouraged to cultivate premium vegetables and to introduce good quality breeding stocks of pigs and poultry. The department provides infrastructural and financial support through low-interest loans to farmers to enhance agricultural productivity and promote safe and environmentally friendly production methods.
To better protect the environment and consumers against pesticide residues, the department launched an Accredited Farm Scheme in late 1994. Accredited farms are strictly monitored and supervised on their use of pesticides. Produce is further checked for pesticide residues by the Vegetable Marketing Organisation, a quasi- government body, before marketing. Accredited produce is sold from specially labelled baskets at retail outlets selected by the Vegetable Marketing Organisation. The scheme has been generally well received and, in April 1995, it was extended to accredit farms in China supplying vegetables to Hong Kong. Progress has been encouraging.
The department implemented an agricultural land rehabilitation scheme in 1988 to return to cultivation fallow land not earmarked for development. The scheme effects improvements in irrigation, drainage and farm road access. Assistance including tenure arrangements, advance payment of rents, soil improvement and marketing facilities, is also available and the scheme has made good progress.
Since mid-1994, the department has been implementing a three-year Livestock Keeping Licensing Scheme under which all livestock farms are required to install and operate waste-treatment systems to prevent pollution. At the end of 1996, the department had issued 246 licences and a further 489 licence applications were in process. The department has developed a non-polluting, odourless and effluent-free pig-on-litter method which uses sawdust as bedding material on which pigs are raised. The used sawdust is recycled as soil conditioner or organic fertiliser for crop cultivation.
Besides technical support, the department administers loan funds which provide low-interest loans to the agricultural sector. They are the Kadoorie Agricultural Aid Loan Fund, the J. E. Joseph Trust Fund and the Vegetable Marketing Organisation Loan Fund. At the end of 1996, loans issued since the inception of these funds reached $332 million.
The Fisheries Industry
Marine fish constitute one of Hong Kong's most important primary products. In 1996, total production from marine capture and culture fisheries was estimated at about 192 100 tonnes, with a wholesale value of $2.5 billion. This represented a decrease of 6 per cent in weight but an increase of 0.4 per cent in value compared with 1995. In weight terms, marine capture fisheries contributed 96 per cent towards total production while the remainder came from culture operations.
The Hong Kong fishing fleet, manned by 21 600 fishermen, comprises some 4 800 vessels of which 4 400 are mechanised. It supplied over 53 per cent of all marine produce consumed locally during the year.
Major fishing methods include trawling, lining, gill-netting and purse-seining. Trawling accounted for 75 per cent, or 138 000 tonnes, of marine fish landed in 1996.
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The total catch of live and fresh marine fish available for local consumption amounted to 84 180 tonnes, with an estimated wholesale value of $1.12 billion.
Marine fish culture is practised within 26 designated fish culture zones, most of which are along the coast of the eastern New Territories. Fish culture licences are issued by the Agriculture and Fisheries Department. At the year's end, there were 1 546 licensed mariculturists. They supplied 3 000 tonnes of live marine fish valued at $170 million during the year.
Freshwater fish are also cultured. Fish ponds covering 1 130 hectares are mostly located in the north-western New Territories where they form part of the wetland system of conservation interest. The area devoted to fish ponds has gradually declined with the increasing urbanisation of the New Territories. During the year, pond culture yielded 5 100 tonnes, or 11 per cent, of freshwater fish for local consumption.
Fisheries Development
The inshore marine environment is under unprecedented pressure from large-scale dredging for marine fill, dumping of mud and reclamation. Besides deteriorating water quality, this also destroys extensive areas of seabed habitats that support the marine fauna and fisheries resources. To mitigate such damage, the Agriculture and Fisheries Department is implementing an artificial reefs project. The project aims at using artificial reefs to enhance the marine habitats favoured by commercial fish species. A variety of artificial habitats will be introduced at strategic areas to help rehabilitate damaged seabed, protect sensitive nursery areas and increase fish production.
The department has commissioned a consultancy study to collect comprehensive information on fisheries resources and fishing operations in Hong Kong waters. Such information will enable the department to formulate fisheries management and conservation measures for the long-term sustainability of fisheries.
Aquaculture studies are directed towards the development of more efficient culture systems and improved husbandry techniques to increase productivity and minimise the impact on the environment. Many mariculturists are now using environmentally friendly moist pellet feed and have reported improvements of the fish culture environment as well as faster and healthier fish growth.
The larger vessels in Hong Kong's fishing fleet are among the most modern in the region, despite their traditional wooden hulls. The department continues to stimulate the modernisation trend by maintaining development input and providing free advisory services on fishing vessel hull design (including steel hulls) and fishing methods, as well as fishing equipment.
Training classes are held for operators, covering the conventional skills required for safe and effective operation of fishing vessels as well as the use of radio telephones and electronic navigation equipment such as radar and satellite communications. The department also organises sea-fishing endorsement courses to train operators to standards required by the Marine Department for steel-hulled fishing vessels.
The department administers four loan funds servicing the fishing industry: the Fisheries Development Loan Fund, the Fish Marketing Organisation Loan Fund, the World Refugee Year Loan Fund and the Co-operative for American Relief
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Everywhere Loan Fund. By December 31, loans issued since the inception of the four funds totalled $306 million.
Marketing
Much of the wholesale marketing of fresh foods is conducted in wholesale markets run by the Agriculture and Fisheries Department, the Vegetable Marketing Organisation and the Fish Marketing Organisation. The Western Wholesale Food Market and the Cheung Sha Wan Wholesale Food Market Phase I are the two biggest market complexes developed and managed by the department. Each market complex is in fact an integration of several markets. The Western Complex, for example, accommodates markets for freshwater fish, vegetables, fruit, poultry and eggs. This allows buyers to purchase a variety of fresh foods under one roof.
Apart from these market complexes, the department also operates temporary wholesale markets at North District in the New Territories for agricultural products, and at Cheung Sha Wan in Kowloon for poultry. Plans are under way for the development of Phase II of the Cheung Sha Wan Wholesale Food Market. On completion, scheduled for 2000, it will reprovision the dilapidated Yau Ma Tei Fruit Market and the temporary poultry market at Cheung Sha Wan.
During the year, the government wholesale markets handled 284 680 tonnes of vegetables, 76 500 tonnes of poultry, 43 670 tonnes of freshwater fish and fisheries products, 189 800 tonnes of fruit and 63 830 tonnes of fresh and preserved eggs. The total value amounted to $6.17 billion.
The Vegetable Marketing Organisation is a financially autonomous and non-profit- making body operated under the Agricultural Products (Marketing) Ordinance, which also provides for the establishment of a Marketing Advisory Board to advise the Director of Marketing (currently the Director of Agriculture and Fisheries). Its primary function is to provide wholesale marketing facilities to local vegetable farmers and wholesalers. Revenue comes from a commission on the proceeds of sales, and surpluses are ploughed back into the development of marketing services and the farming industries, and scholarships for farmers' children. During the year, 242 500 tonnes of vegetables valued at $926 million were sold through the organisation at its market at Cheung Sha Wan.
The Fish Marketing Organisation operates under the Marine Fish (Marketing) Ordinance which also provides for the establishment of a Fish Marketing Advisory Board. The organisation operates seven wholesale fish markets. Revenue comes from a commission on the proceeds of sales. Surplus earnings are channelled back into the industry in the form of services such as low-interest loans to fishermen, improvements to the markets and financial support for schools and scholarships for fishermen's children. In 1996, 50 148 tonnes of marine fish valued at $496 million were sold through the organisation.
Mining and Quarrying
The Mines and Quarries Division of the Geotechnical Engineering Office of the Civil Engineering Department enforces legislation relating to mining, quarrying and explosives, and administers quarrying contracts. It processes mining and prospecting applications and inspects mining and prospecting areas, stone quarries, blasting sites and explosives stores.
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Hong Kong used 26 million tonnes of aggregates and other rock products in 1996. About 7.3 per cent of the territory's demand for aggregates and rock products was met locally, with the balance imported from China.
Three quarrying contracts and two quarry rehabilitation contracts were under way and one kaolin mine was operating under a mining lease in 1996. Negotiations for a third rehabilitation contract are progressing. The rehabilitation contracts require the operators to rehabilitate the quarries within a defined period, in return for the granting of rights to process and sell surplus rock excavated during the course of the works. The rehabilitation works involve recontouring and extensive planting to blend with the surrounding hillsides.
Over the past year, the division continued to manage two government explosives depots which provided bulk storage facilities for imported and locally-manufactured explosives. It undertakes the delivery of explosives from the depots to blasting sites and issues shot-firer certificates.
The largest use of explosives during the year was for site formation works and tunnel construction for the airport core projects and for quarrying works. The overall consumption of explosives was 3 900 tonnes.
The division is responsible for issuing storage licences and removal permits and provides technical support to the Broadcasting, Culture and Sport Branch in assessing the suitability of pyrotechnics and pyrotechnicians. In 1996, there were 41 applications for the use of pyrotechnics in the production of television programmes and theatrical performances.
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DURING 1996, the government continued to accord high priority to education and to implement its targets for improving the quality of education. These efforts included providing additional support to schools with a high proportion of low achievers, helping immigrant children from China integrate into the mainstream schools, and taking measures to ensure that students and graduates are equipped with the knowledge and skills to meet Hong Kong's changing economic needs.
The government is continuing to implement the recommendations of the Education Commission Report No. 6 on language proficiency. These include the setting up of a Standing Committee on Language Education and Research (SCOLAR) and encouraging schools to employ more native qualified English language teachers to teach the subject.
The reviews on the Kindergarten Subsidy Scheme, the Primary Graduate Teacher Posts Scheme and support measures for immigrant children from China were completed and improvements introduced in the 1996-97 school year. Proposals for improving the practical and technical curricula offered in prevocational and secondary technical schools are being finalised. The review on the compulsory education system is under way.
The Education System
About 1.2 million students, or 20 per cent of the total population, were in full-time education during the year. They attended 2 400 institutions and were taught by some 59 000 teachers assisted by a large number of support staff. There were some 143 500 candidates for the two local public examinations and 209 000 entries for overseas examinations.
Educational opportunities in Hong Kong encompass kindergartens, primary and secondary schools, technical institutes, technical colleges and tertiary institutions. The majority of places from primary school upwards are provided either free of charge or at highly subsidised rates. Kindergartens are run by private organisations, as are international schools and commercial schools providing language, computer and business courses.
All children must, by law, be in full-time education from the age of six to their 15th birthday or completion of Secondary 3, whichever is earlier.
Most children attend kindergarten from the age of three. Primary school normally begins at the age of six, and lasts for six years. At about 12, children progress to a three-year junior secondary course. After Secondary 3, most stay on for a two-year senior secondary course leading to the first public examination, the Hong Kong
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Certificate of Education Examination (HKCEE); others join full-time craft courses of vocational training and a few leave formal education at this point.
After the HKCEE, students who wish to continue their studies either progress to a two-year sixth form course leading to the Hong Kong Advanced Level Examination (HKALE); to a two- or three-year vocational course leading to a certificate or diploma; or to a three-year course of teacher education. Post-HKALE opportunities include a place on a three-year first degree or diploma course, or on a two-year teacher education programme. Those leaving full-time education at the end of the senior secondary or sixth form courses have opportunities for part-time study or vocational training through to degree level.
Funding of Education
Approved public spending on education in the 1996-97 financial year amounted to $39.82 billion, representing 21 per cent of the government's total recurrent expenditure and eight per cent of capital expenditure. Public funds cover about 90 per cent of the capital cost of an aided primary or secondary school and virtually the full cost of tertiary institution campuses, the entire recurrent cost of providing tuition from Primary 1 to Secondary 3, and about 83 per cent of the recurrent cost from Secondary 4 up to courses at degree level.
Non-profit-making kindergartens are eligible for rent and rates reimbursements, and financial assistance from the government under the Kindergarten Subsidy Scheme introduced in September 1995. Needy parents of kindergarten pupils may apply for fee remission.
Most primary and secondary schools are publicly-funded. The government directly manages some primary and secondary schools, but a great majority of schools in the public sector are operated by non-profit-making voluntary organisations which receive public funds under a code of aid. Tertiary institutions are autonomous statutory bodies. Eight of them, including the Hong Kong Institute of Education, receive public funds through the University Grants Committee. A comprehensive, publicly-funded system of technical education and vocational training is provided by the statutory Vocational Training Council.
Private primary schools receive no public funding, on the grounds that there are sufficient places in the public sector; but some private secondary schools receive public funds under two schemes the Direct Subsidy Scheme and Bought Place Scheme.
The Direct Subsidy Scheme (DSS) was introduced in 1991 to enhance the quality of private secondary schools and to provide parents with a wider choice. Private secondary schools meeting specified standards can receive a government subsidy for each eligible student. They are free to decide on their own curriculum and to set entrance requirements and fee levels. A total of 12 schools have joined the DSS. A review of the scheme, started in 1995 and completed in August 1996, indicates that the objective of the DSS is generally well accepted.
Under the Bought Place Scheme (BPS), a private secondary school, from which the government buys places to make up shortfalls in government and aided school places, is given financial assistance to help raise standards. As part of the DSS policy package, the BPS will be phased out. Schools in the scheme are being helped to raise their standards so that they may, if they wish, apply to join the DSS. During the year,
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18 private schools with bought places operated under contracts with the government which specify improvements in areas such as whole-day operation, class structure, teacher qualifications and school facilities. The contracts will expire in the year 2001, unless terminated earlier by either party, or when a school joins the DSS.
The Legislative Framework
Any institution offering education to 20 or more students in a day, or to eight or more students at any one time, must operate in accordance with statutory requirements. School operations (including kindergartens, primary and secondary schools, and commercial institutions) are governed by the Education Ordinance (Chapter 279), which provides for the registration of schools, teachers and managers, and for compulsory attendance by children between the ages of six and 15. The Education Regulations cover matters including health and safety requirements, fees and charges, and teacher qualifications.
The Vocational Training Council Ordinance covers technical colleges, technical institutes, training centres, and skills centres for the disabled. The Post-Secondary Colleges Ordinance covers institutions offering post-secondary courses outside the tertiary sector. Two important statutory bodies with a quality control role are the Hong Kong Examinations Authority and the Hong Kong Council for Academic Accreditation. The Education Scholarships Fund Ordinance provides for the administration of many scholarships donated by members of the public.
The Non-Local Higher and Professional Education (Regulation) Ordinance was enacted on July 18, 1996. It seeks to establish a legislative framework for regulating the standards of courses delivered in Hong Kong by non-local institutions of higher education or professional bodies which lead to the award of non-local qualifications. It offers a measure of consumer protection to people undertaking such courses. Detailed operation of the regulatory regime and the appeal procedures will be provided in subsidiary legislation made under the ordinance, which will come into effect in 1997.
The Government's Role
The Secretary for Education and Manpower, who heads the Education and Manpower Branch of the Government Secretariat, formulates and reviews education policy, secures funds in the government budget, liaises with the Legislative Council on educational issues, and oversees the effective implementation of educational programmes.
The Director of Education, who heads the Education Department, implements educational policies at kindergarten, primary and secondary levels. She directly manages all government schools and the Curriculum Development Institute.
The main responsibilities of the Education Department include the provision and allocation of public sector school places to pupils entering the primary, junior secondary, senior secondary and sixth form levels; provision of facilities for children with special educational needs; developing school curricula; monitoring teaching standards; and administering the public funding to schools. The department also contributes to policy development and review.
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Students from Epworth Village Methodist Church Kindergarten have a cheery wave for the camera. Children aged three to five achieved a school attendance rate of 95 per cent in 1996; the six to 11 group rate was 100 per cent, with the 12-16 and 17-18 groups recording 96 and 64 per cent, respectively. At the latest by-census, in March 1996, Hong Kong had 1.15 million people aged under 15, or 18.5 per cent of the population. A further 869 511, or 14 per cent, were aged between 15 and 24. About 15 per cent of Hong Kong's population has completed a course of tertiary education, while 52.7 per cent completed secondary school.
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Smiles all round greet the perfect score of Wah Yan College students Lam Cheung-chi (second from left) and Tin Chi-ho (right) as they display their examination results - 10 subjects, 10 'A's. RIGHT: Maryknoll Convent School, established in 1925, presents the appearance of a much earlier era. BELOW RIGHT: Polished boards and airy verandahs emphasise the history of St Stephen's Girls' College, Mid-Levels, which celebrated its 90th anniversary in 1996. Among other educational institutions marking anniversaries in 1996, St Joseph's College celebrated 140 years, St Paul's Boys School was 145 and Diocesan Boys' School 127.
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Athletes from La Salle College sprint away after a baton change during a relay race at the school's annual sports day. BELOW: Students at St Paul's College perform Andrew Lloyd Webber's Joseph and the Amazing Technicolor Dreamcoat under the sphinx-like gaze of a latter-day pharaoh.
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Community Participation
Members of the community play an important part in the planning, development and management of the education system at all levels, sitting on advisory bodies, executive bodies, management committees of schools and governing bodies of tertiary institutions. Public response is sought on major changes to existing policies and practices in education through extensive consultation exercises and regular public fora.
Education Commission
The commission advises the government on the development of the education system as a whole in the light of community needs. Its terms of reference are to define overall objectives; formulate policies and recommend priorities for implementation, having regard to the resources available; co-ordinate and monitor the planning and development of education at all levels; and initiate educational research.
It has 18 members, of whom 16, including the chairman, are appointed from outside the government to bring a wide range of personal and professional experience to the issues under review. They include the chairmen of the Advisory Committee on Teacher Education and Qualification (ACTEQ), the Board of Education (BoE), the University Grants Committee (UGC) and the Vocational Training Council (VTC). The two government members are the Secretary for Education and Manpower, who is the vice-chairman, and the Director of Education.
During the year, the commission published its Report No. 6 (ECR 6) on a com- prehensive strategy to enhance language proficiency. One of the recommendations is to set up a Standing Committee on Language Education and Research (SCOLAR) to provide a long-term institutional framework for the formulation, monitoring and evaluation of language in education policy. The report was accepted by the government in March 1996 and the SCOLAR was set up in October 1996.
The next phase of work of the commission is to produce a Report No. 7 on Quality School Education. It set up a Task Group on School Quality and School Funding in April 1996 to formulate the proposal and to draft a consultation document. In order to address the genuine need of the school community, the task group published a consultation pamphlet entitled 'Quality School Education: Ways to improve performance' in June 1996 for a six-week consultation. Comments were sought on broad principles governing quality school education, including the goals and targets of quality school education, ways to relate school funding to performance, the roles of key players in the school system and the relationships between them. The commission published a draft consultation document in November 1996 for public consultation which generated a great deal of public interest and discussion. It will submit its final recommendations to the government in early 1997. A working group set up under the Education Commission in 1995 continued its review of the case for the establishment of a General Teaching Council.
Board of Education
The Board of Education (BoE) is a statutory body appointed to advise the government, through the Director of Education, on educational matters at school level. It focuses on the implementation of approved policies, and the need for new or modified policies relating to education in schools. Its members include the chairmen of advisory and executive bodies concerned with the school system the Curriculum
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Development Council; the Private Schools Review Committee; and advisory committees on home-school co-operation, school administration and finance, school guidance and support services, and school places allocation systems. Other members have experience in kindergartens, special schools, school administration, teaching, teacher training, tertiary education, business and other professions. Two government officials sit on the board: the Director of Education as vice-chairman, and the Deputy Secretary for Education and Manpower.
During the year, the board's Sub-committee on Special Education completed its review on special education services and proposed comprehensive measures for improvement. The Sub-Committee on Review of School Education, set up in 1995, continued its review on the implementation of compulsory education.
Curriculum Development Council
The Curriculum Development Council (CDC) is appointed by the Governor to advise the government, through the Director of Education, on matters relating to school curriculum development from kindergarten to the sixth form. It has a three-tier structure and operates through a system of co-ordinating committees and subject committees. Membership of the CDC and its co-ordinating and subject committees includes heads of schools, teachers, tertiary academics, the Hong Kong Examinations Authority representatives, parents and employers.
During the year, the CDC completed research on Chinese handwriting at kindergarten level and the teaching methods of Putonghua used in schools. It also developed new curriculum guides on special and pre-primary education, revised the guidelines on civic education and identified new curriculum needs to meet the changing needs of the community including the teaching of Putonghua as a core subject and civic education as an independent subject.
Standing Committee on Language Education and Research
The Standing Committee on Language Education and Research (SCOLAR) is a non- statutory body set up on October 1, 1996, upon the recommendation of the Education Commission Report No. 6, to advise the government on language education issues in general, and in particular, to set goals for language learning at different levels of education, to propose specific language attainment targets at each stage of education, and to identify research and development projects which are necessary for the enhancement of language proficiency and language in education. SCOLAR has 20 members, of whom 18 are appointed from outside the government. The two government members are the Deputy Secretary for Education and Manpower and the Deputy Director of Education. Other members include educators/administrators from the tertiary, secondary, primary and pre-primary education sectors, language experts, businessmen and employers, as well as professionals from other sectors.
With the subsuming of the Language Fund Advisory Committee under SCOLAR in October 1996, SCOLAR oversees the management of the Language Fund for the enhancement of language education in Hong Kong. Projects to enhance language standards in Chinese (including Putonghua) and English in Hong Kong will continue to be funded under the auspices of the Language Fund which has hitherto committed over $140.19 million for 110 projects.
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Advisory Committee on Teacher Education and Qualifications
The Advisory Committee on Teacher Education and Qualifications (ACTEQ) is a non-statutory body set up in 1993, upon the recommendation of the Education Commission Report No. 5, to provide a single source of authoritative advice on teacher education programmes, and on qualifications acceptable for teaching purposes in Hong Kong. Of its 24 members, 18-including the chairman are appointed from outside the government. They include school heads, teachers, academics and businessmen. The six ex officio members are the Deputy Secretaries for Education and Manpower and the Civil Service, the Director of Education, the Secretary-General/University Grants Committee, the Director of the Hong Kong Institute of Education and the Executive Director of the Hong Kong Council for Academic Accreditation.
To improve the quality of teachers, ACTEQ has recommended to the government to require, by phases, both non-local and local degree holders to have a local post- graduate certificate in education qualification for appointment as graduate teachers in public sector secondary schools. The recommendations are being implemented by stages. The working group under ACTEQ to develop a mechanism for ensuring that teacher education activities respond to the needs of schools and the community has finished the first phase of its deliberation. The Task Force on Benchmarking formed under ACTEQ in response to the recommendation of the Education Commission Report No. 6 has also completed the first phase of its work to develop benchmarks for English language teachers in lower secondary forms, and Putonghua teachers as well as teachers using Chinese as the medium of instruction in primary schools.
University Grants Committee
The University Grants Committee (UGC) is appointed by the Governor to advise on the development and funding of higher education, and administer public grants to eight publicly-funded institutions. It comprises 13 non-local academics, five local academics and four local professionals and businessmen. Its secretariat is staffed by civil servants.
When the UGC was established in 1965 to administer grants to two publicly funded tertiary institutions, there were only 4 100 full-time equivalent students. By 1995-96, there were seven such institutions with 62 000 full-time equivalent students With the addition of the Hong Kong Institute of Education (HKIEd) in 1996-97, the number of UGC-funded institutions increased to eight and the full-time equivalent student number increased to 67 900 (see tertiary education).
The UGC published a report on the review on the development of higher education in Hong Kong in November 1996. The UGC's recommendations include the overall student numbers at different levels during a period of consolidation in growth, the number of non-local students, the funding of continuing education, the provision of student hostels, the normative length of undergraduate study, language proficiency and the target of reducing unit costs by 10 per cent by the end of the triennium without detriment to quality, while further improving standards and meeting the changing needs of Hong Kong. In May 1996, the UGC published a report which described its work between July 1, 1991, and June 30, 1995.
The UGC plays a major role in monitoring quality assurance in its institutions. In order to ensure that mechanisms for promoting and improving the quality of teaching
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and learning in the institutions are operating properly, the committee has undertaken a series of Teaching and Learning Quality Process Reviews of the institutions starting from January 1996.
The UGC conducted the second Research Assessment Exercise in November 1996, aimed at assessing the research output performance of the UGC-funded institutions (except HKIEd which joined the UGC in December 1996). The findings will be used as the basis for allocating some of the research portion of the institutional recurrent grant for the 1998-2001 triennium.
Research Grants Council
The Research Grants Council (RGC) advises the government, through the UGC, on the needs of tertiary institutions for academic research and the funding required, and monitors the use of public research grants. It comprises seven local academics, nine overseas academics and three local professionals and industrialists.
Grant applications are considered by four specialist panels composed mainly of local academics, covering physical sciences, engineering, biology and medicine, humanities, social sciences and business studies. An independent network of academic referees provides impartial advice. In 1996-97, the RGC received a record 1040 applications and disbursed $331 million in grants for academic research.
During the year, the RGC and the British Council jointly sponsored the United Kingdom/Hong Kong Joint Research Scheme, which aimed at strengthening existing links between local and British tertiary institutions. The RGC also launched a similar scheme with the German Academic Exchange Service.
Vocational Training Council
The Vocational Training Council (VTC) advises the government on measures to ensure a comprehensive system of technical education and industrial training suited to Hong Kong's developing needs. It also administers technical colleges, technical institutes, industrial training centres, skills centres for the disabled and the statutory apprenticeship scheme. Its membership comprises industrialists, academics, employee representatives and government officials.
Several training boards and committees which deal with areas of training in one or more economic sectors come under the VTC. Their main tasks include assessment of manpower needs and recommending measures to meet such needs, prescribing job specifications, training programmes and trade test guidelines, and overseeing the operation of training centres and trade testing.
In March 1996, the Education and Manpower Branch commissioned a consultancy study on the VTC with the aim of mapping out its direction in the medium term. Views of the major stakeholders were sought when the study concluded at the end of August.
Hong Kong Examinations Authority
The Hong Kong Examinations Authority (HKEA) is an independent and self- funding statutory body, with members drawn from the teaching profession, tertiary institutions and the business community. It operates two local public examinations: the Hong Kong Certificate of Education Examination (HKCEE) and the Hong Kong Advanced Level Examination (HKALE). It also offers proficiency tests in Putonghua
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aimed at adults. On behalf of overseas and local examining bodies, the authority conducts many examinations leading to academic, professional or practical qualifications.
During the year, 114 229 candidates sat for the HKCEE and 29 285 sat for the HKALE. A total of 42 subjects were offered in the HKCEE; 21 A-level subjects and 19 Advanced Supplementary (AS) level subjects were offered in the HKALE. The latter included two core language subjects: Use of English, and Chinese Language and Culture. AS-level subjects were offered for the first time in 1994 with a view to broadening the sixth-form curriculum. There was a 3.1 per cent increase in AS-level non-language entries compared with 1995 (a 23.7 per cent increase compared with 1994 when AS-level subjects were first examined).
Starting from 1995, the HKCEE English Language (Syllabus B) listening test has been conducted using a radio broadcast. Nearly 100 000 candidates took the test at the same time in 1996, each bringing a portable radio. The HKALE results of the day school candidates were similar to those of 1995, with the percentage of awards at grade E and above for A-level subjects being 72.3 (72.2 in 1995). Percentages at grade E and above in the two AS-languages and non-languages AS-level subjects were 81.7 and 71.7 respectively (84.1 and 72.0 in 1995). The percentage of grade awards at grade E and above for school candidates in the HKCEE was 63.0 compared with 63.5 in 1995.
Candidates sitting for overseas examinations totalled 209 000, of whom 64 700 sat for the London Chamber of Commerce and Industry examinations, 48 600 for the Associated Board of the Royal Schools of Music, and 18 700 for the Test of English as a Foreign Language.
Hong Kong Council for Academic Accreditation
The Hong Kong Council for Academic Accreditation (HKCAA) is an independent statutory body with 19 members, comprising senior academics from Hong Kong and overseas, and local industrialists and professionals. It is managed by a full-time staff with expertise and experience in quality assurance and higher education, and supported by more than 1 000 local and overseas expert consultants.
The HKCAA reviews the non-university degree-awarding institutions of Hong Kong and validates the individual programmes of those which have yet to acquire self-accreditation status to ensure that the degrees meet internationally-recognised standards. Reviews were conducted at the Open Learning Institute of Hong Kong, the Hong Kong Academy for Performing Arts, and the Hong Kong Institute of Education in 1996. The HKCAA also provided professional advice to a post- secondary institution, the Shue Yan College, in respect of its academic development. The HKCAA's advisory role has grown over the years. The HKCAA advised government branches/departments such as the Civil Service Branch, the Education Department, and the Social Welfare Department - and public bodies, such as the Hospital Authority, on the comparability of non-local with local qualifications for the purpose of appointment. It also disseminated information and provided professional advice to individuals on the standards of overseas educational programmes and on the comparability of qualifications.
The HKCAA will become advisor to the Registrar of Non-local Higher and Professional Education Courses when the newly enacted Non-local Higher and
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Professional Education (Regulation) Ordinance takes effect in 1997. It will help the Registrar to assess whether courses offered by non-local post-secondary institutions and professional bodies in Hong Kong are of a standard comparable to those offered by them in their home countries and thus meet the main criteria for registration to operate in Hong Kong.
International and regional links with higher education and accreditation authorities have continued to develop, especially those with the People's Republic of China. During the year, the HKCAA co-organised an international conference on quality assurance in higher education held in Beijing.
School Management Committees
Each school registered under the Education Ordinance has a management committee, which is responsible for the proper education of the pupils and operation of the school. One manager must be registered as the supervisor, whose main roles are to handle all correspondence between the school and the Education Department, and to oversee the management of the school in accordance with the Education Ordinance on behalf of the management committee.
Each aided primary or secondary school is operated under a letter of agreement with a sponsoring body, which contributes the full cost of furnishing and equipping the premises and manages the school through its management committee headed by a supervisor. In the 1996-97 school year, 1053 aided schools were in the care of 389 sponsoring bodies, the largest of which operated 123 schools.
By September 1996, 290 government and aided primary, secondary and special schools had joined the School Management Initiative (SMI) Scheme. This was begun. in 1991 to give government and aided schools more decision-making power and more flexibility in the use of resources, in return for more formal procedures for planning, implementing and evaluating their activities.
Training courses, seminars and workshops were organised to familiarise schools with the concepts and tasks related to SMI. Pamphlets, posters and videos on the implementation of SMI were made available to both SMI and non-SMI schools. Roving exhibitions and visits to exemplary schools were also arranged to help promote the scheme to school operators and members of the public. A newsletter, the SMI Quarterly, was sent regularly to school heads and teachers to keep them informed of developments. The SMI Resource Centre was set up to provide professional support for the implementation of the scheme.
Governing Bodies of Tertiary Institutions
Each tertiary institution has its own structure of governance, set out in its ordinance. In all cases, that structure includes a governing body (called the court, the council or the board of governors), and a body to regulate academic affairs (called the senate or the academic board). Some institutions operate under three bodies: a governing body, an executive body and a body dealing with academic affairs.
The Governor of Hong Kong is empowered by the ordinances to appoint the chairman of each governing body, as well as a prescribed number of members. This ensures a balanced distribution of members from the industrial, commercial and academic fields.
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Student Finance
The Student Financial Assistance Agency administers several publicly funded schemes which ensure that students are not denied access to education because of a lack of means. The agency also administers privately funded scholarships awarded on the basis of academic merit. These schemes are described below.
Student Travel Subsidy
Needy students aged between 12 and 25 in full-time study up to first degree level are eligible for a subsidy to cover part of their study-related travel expenses. In the 1995-96 academic year, 179 763 students received assistance totalling $217.4 million.
Textbook Assistance
Primary and junior secondary students who need help to meet the cost of textbooks and stationery may apply for a grant. In 1995-96, 140 955 students received assistance totalling $80.6 million.
Fee Remission
The Senior Secondary Fee Remission Scheme aims to relieve needy students from Secondary 4 to 7 of half or all of the standard school fee. In 1995-96, 84 974 students were granted fee remissions amounting to $233.3 million.
The Kindergarten Fee Remission Scheme provides assistance to eligible kindergarten pupils, in the form of 50 or 100 per cent of the weighted average of fees charged by non-profit-making kindergartens, or the actual fee, whichever is lower. In 1995-96, $169.7 million was granted to 47 320 kindergarten pupils.
Local Student Finance Scheme
Full-time students studying eligible courses in the UGC-funded institutions, the two technical colleges of the Vocational Training Council, the Prince Philip Dental Hospital, and the Hong Kong Institute of Education, may apply for assistance under the means-tested Local Student Finance Scheme (LSFS). It provides for loans to meet living expenses and grants to cover tuition fees, academic expenses and student union fees. With effect from 1995-96, an Extended Loan Scheme has been introduced as an additional component of the Local Student Finance Scheme with a slightly higher interest rate to benefit those marginally-failed applicants and those successful applicants with low assistance under the main scheme. In the 1995-96 academic year, $750 million in grants and $849 million in loans were provided to 36 345 needy students.
A consultant was commissioned in November 1995 to conduct a review of the LSFS. The review was completed in early 1996, followed by an extensive public consultation between May and October. A few improvement measures were made, including launching targeted publicity at prospective students from poorer households to inform them of the scheme's availability, reacting quickly to provide assistance when the students' family situations change suddenly after application; and simplifying and speeding up the appeal process.
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Student Finance Assistance Scheme
Loans and grants are awarded to eligible full-time students of Hong Kong Shue Yan College. In 1995-96, 824 students received loans totalling $5.8 million; of these, 805 also received grants totalling $5.1 million.
Joint Funding Scheme for Hong Kong Students in the United Kingdom
This is a means-tested scheme providing financial assistance in the form of grants and loans to eligible Hong Kong students studying first degree or Higher Diploma courses in the UK. The scheme is being phased out starting from 1994-95. In 1995-96, grants of £600,000 and loans of $1.4 million were made to 174 students.
United Kingdom-Hong Kong Scholarships Scheme
This scheme aims to help outstanding students from Hong Kong to pursue tertiary education in the UK. The scholarship fund is financed jointly by the British Government and the Royal Hong Kong Jockey Club (on behalf of the Hong Kong Government). Two new scholarships were awarded in 1995-96. The scheme is being phased out starting from 1996-1997.
Sir Edward Youde Memorial Fund
The fund was established to manage public donations made in memory of the late Governor, Sir Edward Youde, who died in service in 1986. It promotes education and learning among Hong Kong people, and encourages research. It disbursed $11.3 million in 1995-96.
Fourteen students, including one disabled student, were awarded new fellowships for postgraduate or scholarships for undergraduate study overseas. Forty-four postgraduate students received fellowships while 82 undergraduate, diploma and certificate students received scholarships to study locally. Awards were also made to three students excelling in public examinations; 22 disabled students at secondary, post-secondary and tertiary levels; and 682 outstanding senior secondary students nominated by school heads.
Other Scholarship and Assistance Schemes
Other scholarship and assistance schemes for school students are endowed by private benefactors. Many scholarships are administered by the Student Financial Assistance Agency under the Education Scholarships Fund Ordinance.
Educational Institutions
Kindergartens
In September 1996, 180 800 children, most of them aged three to five, were enrolled in 734 kindergartens. Most kindergartens operate two half-day sessions, but the number offering whole-day places is increasing.
The Education Department gives professional advice to kindergartens through inspection visits; produces curriculum materials; and organises seminars, workshops and exhibitions to help heads and teachers develop their professional skills. It also publishes guidelines to help teachers organise curriculum and learning activities.
To improve the quality of kindergarten education, the government has, since 1995, required kindergarten teachers to possess a minimum qualification of having
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completed Secondary 5 with at least two passes in the HKCEE, and kindergartens to maintain a minimum proportion of 40 per cent trained teachers in each session. The Kindergarten Subsidy Scheme (KSS) was introduced in 1995 to minimise the impact on parents of fee increases resulting from these regulatory requirements. A review of the KSS was conducted in early 1996, resulting in an increase of 14 per cent to the rate of subsidy per pupil to $790 per annum and an adjustment to the eligibility cut- off point by 41 per cent to $11,700 per pupil per annum for the 1996-97 school year.
Primary Schools
Primary schooling, beginning at the age of six and lasting six years, is free. Although enough places are available in the public sector, about 10 per cent of parents prefer to send their children to private primary schools. Admission to Primary 1 in the public sector is processed through a central allocation system, which has helped to eliminate pressure on children caused by intense competition for entry to popular schools.
During the year, 464 200 children were enrolled in 857 public sector primary schools. Most primary schools operate bi-sessionally. With effect from September 1993, the normal class size in public sector schools is being reduced from 40 to 35, starting with Primary 1 and extending upwards by one level each year. In schools adopting the activity approach - a more lively, pupil-oriented approach to teaching the original class size of 35 is being similarly reduced to 30. In September 1996, this was extended to Primary 4.
A new school design for primary schools has been drawn up to provide more facilities for activities other than formal teaching and administration. The first school with this design is expected to be completed in 1997. Some 210 schools have been provided with additional rooms and facilities under the first two phases of the School Improvement Programme which started in 1994.
Whole-day schooling for all primary students is the long-term goal. Any primary school wishing to convert to whole-day operation is encouraged to do so if the supply of school places in the district will not be adversely affected. New primary schools are run as whole-day schools wherever possible. During the year, 18 unisessional/ bisessional primary schools converted to whole day operation, bringing the total to 180.
The first phase of the policy to upgrade 35 per cent of primary school teachers to graduate status started in 1994. Up to the 1995-96 school year, a total of 365 graduate posts have been provided. Another 300 posts were made available for the 1996-97 school year. The intention of the policy is to upgrade the professional and managerial skills of staff in government and aided primary schools. The teacher-to- class ratio is 1.4:1 for whole-day classes (improved from 1.2 since September 1992). For bi-sessional classes, the phased improvement to 1.3 teachers per class began in September 1993.
Chinese is the medium of instruction in most primary schools, with English taught as a subject from Primary 1. Many schools teach Putonghua as a separate subject or during after-school activities. A few primary schools use English as the language of instruction.
The primary school curriculum aims to provide a coherent and well-balanced programme to promote the all-round development of the child. All public-sector primary schools adopt a core curriculum including Chinese, English, Mathematics,
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General Studies (an integration of Social Studies, Science and Health Education), Music, and Physical Education as well as Art and Craft. Other learning programmes such as civic education, drug education and environmental education are offered on a cross-curricular basis or as separate optional subjects. A syllabus for each core subject is prepared by the Curriculum Development Council. The syllabuses for Physical Education and Art and Craft were recently revised and updated to meet changing educational and community needs. Awareness of the benefits of the activity approach is growing, and during the year it was adopted by 418 primary schools, or 50.5 per cent of the total.
Phase I of the full implementation of the Target Oriented Curriculum (TOC) initiative started at Primary 1, and 76 primary schools began to implement TOC in the three core subjects of Chinese, English and Mathematics in the 1995-96 school year. In the 1996-97 school year, over 520 primary schools (60 per cent) implemented TOC at primary 1.
Students ending the primary course are allocated places in government or aided secondary schools, or offered bought places in private schools. The allocation system is based on internal school assessments scaled by a centrally-administered academic aptitude test, and on parental choices. For allocation purposes, the territory is divided into 18 school regions to be in line with the district administration boundaries. In 1996, 78 869 primary pupils took part, of whom 70 016 (88.8 per cent) were allocated places in government and aided grammar and technical secondary schools, 4 824 (6.1 per cent) in prevocational schools, and 4 029 (5.1 per cent) in private schools in the Bought Place Scheme.
Secondary Schools
Secondary education is divided into junior secondary and senior secondary levels. The junior secondary curriculum aims to provide a well-balanced and basic education suitable for all students, whether or not they continue formal education beyond Secondary 3. This curriculum consists of a common core and, combined with the curriculum at the primary level, provides students with a balanced curriculum for nine years of free, compulsory and universal education. Universal free education was extended to junior secondary classes in 1978.
The senior secondary curriculum aims to prepare students for education beyond Secondary 5 as well as for work, and offers a diverse range of subjects from which schools and students may select according to the needs and interests of individuals, school traditions and the facilities available.
After Secondary 3, the aim is broadly to meet the demand for places on senior secondary or vocational courses. In 1996, there were subsidised Secondary 4 places for 84.5 per cent of the Secondary 3 students, with places for a further 5.6 per cent on full-time craft courses of vocational training. The target for sixth form provision is to provide one public sector Secondary 6 place for every three public sector Secondary 4 places two years earlier.
There are five types of secondary school: grammar, technical, prevocational, practical and skills opportunity schools. In 1996, the 418 grammar schools had a total enrolment of 456 700. They offer a five-year secondary course in a broad range of academic, cultural and practical subjects leading to the Hong Kong Certificate of Education Examination (HKCEE). Most also offer a two-year sixth form course
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leading to the Hong Kong Advanced Level Examination (HKALE). The 20 technical schools, which prepare students for the HKCEE with an emphasis on technical and commercial subjects, had an enrolment of 20 515. Qualified candidates can continue their studies in the sixth form or in technical institutes.
The 27 prevocational schools, with an enrolment of 22 758, emphasise practical and technical subjects upon which future vocational training may be based, while providing a good foundation of general knowledge. The curriculum in Secondary 1 to 3 has a technical and practical content of about 40 per cent, but it is reduced to about 30 per cent in Secondary 4 and 5. Students completing Secondary 3 in prevocational schools may enter an approved apprenticeship scheme, or continue in school and take the HKCEE. Qualified students can then proceed to the sixth form, or a course in a technical college or technical institute.
The two practical schools, with a total capacity of 930 places, offer a curriculum with a practical orientation and strong guidance support. They help students develop their interest in and motivation towards studies and prepare them for further studies in vocational training or senior secondary education. The three skills opportunity schools, with a total capacity of 700 places, offer a tailor-made and skills-orientated curriculum to help students who have severe learning problems to acquire basic social and vocational skills.
Secondary 3 leavers are selected for subsidised places in Secondary 4 or basic craft courses, according to internal school assessments and parental preference. The selection process aims to enable as many students as possible to progress to Secondary 4 within the same school. In 1996, 80 470 students took part in the exercise, of whom 67 468 (84 per cent) secured Secondary 4 places in public sector schools, and 4 432 (5.5 per cent) were admitted to basic craft courses. Admission to Secondary 6 depends on results in the HKCEE. In 1996, all 23 887 places available were filled.
To meet provisional targets, 12 new secondary schools were built during the year. Most new schools are built to the standard design introduced in 1990. The first phase of the school improvement programme, which will provide more space for non- teaching activities, covered 104 primary and secondary schools. The second phase, which will include more than 120 primary and secondary schools, has already begun. The staffing ratio in government and aided secondary schools is 1.3 teachers per class in Secondary 1 to 5, and two teachers per class in the sixth form. Additional teachers are supplied to strengthen language teaching; provide remedial teaching, careers guidance, counselling, extra-curricular activities and library services; and to enable split-class teaching of cultural, craft and technical subjects, as well as some sixth form subjects. The ratio of graduate to non-graduate teachers is about 7:3. The student/teacher ratio is about 19.5: 1.
Secondary schools are encouraged to adopt Chinese as the medium of instruction, rather than a mixture of English and Chinese. To support this policy, they were advised to choose the appropriate medium of instruction according to the language proficiency profiles of their Secondary 1 intakes from 1989 to 1995. Primary 6 leavers were grouped into three categories: those able to learn effectively in either Chinese or English (about 33 per cent); those who would learn best through Chinese (about 60 per cent); and those who would learn better through Chinese but would probably also be able to learn in English (about 7 per cent).
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To help them choose secondary schools most suited to their children's language ability, parents were informed of their children's grouping and the medium of instruction adopted by individual schools. Schools were advised to ensure a good match between their medium of instruction and the language proficiency of students they admitted. In September, 74 schools used Chinese for all subjects except English language and more schools increased their use of Chinese, either for some Secondary 1 classes or for all classes in some subjects.
To broadenal the existing secondary curriculum, Travel and Tourism was introduced as a new subject at Secondary 4 and 5. A total of 48 schools, including grammar, technical and prevocational schools offered the subject. At the sixth form level, Electronics, a new subject at the advanced supplementary level was being developed.
During the year, a working group was set up to review Hong Kong's prevocational and secondary technical education in response to economic, social and technological changes. The review is expected to be completed in early 1997.
Teaching guidelines and supporting materials are provided to schools for cross- curricular studies in such areas as civic education, moral education, drug education, sex/AIDS education and environmental education. Sex/AIDS education is integrated into various subjects in primary and secondary schools. The aim is to enable students to understand sex as part of overall personal and social well-being, and not as something isolated from other aspects of behaviour. During the year, a working party was set up to review the Guidelines on Sex Education in schools. Moreover, the Curriculum Development Institute has developed a set of Chinese teaching materials on 'Sex and the Mass Media'. The draft guidelines on sex education to cover kindergarten to senior secondary levels will be ready for public consultation in early 1997.
Teaching syllabuses are prepared by the Curriculum Development Council for all subjects offered at the secondary level and the syllabuses are reviewed and revised as necessary to meet the changing needs of society. In 1996, five syllabuses at secondary level were revised. A guide to the Secondary 1 to 5 curriculum was published and distributed to schools to help them develop a curriculum suited to their students' needs and interests. Forty-six subjects are available at junior secondary and forty-two at senior secondary levels.
All sixth form courses last two years. Subjects available include 18 at the advanced supplementary level and 22 at the advanced level. A guide to sixth form curriculum was published and distributed to schools.
The Curriculum Development Institute offered short courses and seminars to help teachers implement and become familiar with the curricula at both secondary and sixth form levels.
The class library service provides supplementary reading materials to support learning and encourage the habit of leisure reading in secondary school students. All public sector secondary school libraries are staffed by a teacher-librarian. In-service courses and seminars were organised for teachers on managing, developing and promoting the use of class libraries. The 1996 Reading Award Scheme for Primary 5 and 6 attracted 65 000 pupils from 356 schools while the 1996 Reading Award Scheme for Secondary 1 to 5 attracted 37 000 students from 209 schools. The School
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Library Newsletter continued to provide a channel of communication for schools on managing, developing and using the library to support the curriculum.
The Chinese Textbooks Committee
To encourage and supplement the use of Chinese as the medium of instruction in secondary schools, the Chinese Textbooks Committee (CTC) was set up to ensure the availability of good quality Chinese textbooks. Under the three phases of an Incentive Award Scheme, 92 sets of textbooks for 32 subjects at S1-7 level were published.
During the year, the CTC implemented another phase of the scheme to produce 43 sets of textbooks for 16 subjects at S1-7 level by the 1998-99 school year. Moreover, it conducted a questionnaire survey on the use of the Chinese textbooks produced in the first three phases of the scheme. Having accomplished its aims, the CTC was dissolved upon the expiry of its term of office on July 31, 1996.
Committee on Home-School Co-operation
The Committee on Home-School Co-operation aims to improve communication between schools and parents. Its members include educators, parents, Parent-Teacher Association (PTA) chairpersons and officers of the Education Department. During the year, it followed up the recommendations made in the report of a large-scale survey conducted in 1994 on the perception of home-school relations among various people involved in education. These included a pilot programme to try out effective ways of improving home-school relations. It also organised promotion activities. which included seminars, a roving exhibition on drug education and a campaign calling upon parents to show appreciation of teachers' work. A pilot scheme to set up in schools a 24-hour enquiry line for parents was also launched. Furthermore, PTAs were encouraged to form networks in their own districts.
Extra-curricular activities
Extra-curricular activities are an integral part of school life, complementing and enriching formal learning in the classroom. The Education Department provides guidance and advice through in-service teacher education programmes and school inspections, subsidises some activities, and co-ordinates many inter-school programmes and activities. These include the Community Youth Club, the Duke of Edinburgh's Award Scheme, the Lions' Sister Schools Scheme, the 32nd Schools Dance Festival, the School Dance Exchange '96, the Schools Drama Festival, sports and recreational activities, as well as subject- and interest-based activities.
Special Education
The main policy objective of special education is to integrate the disabled into the community through co-ordinated efforts by the government and non-governmental organisations.
Early identification is an important prevention measure. Screening and assessment services identify special educational needs among school-age children, so that appropriate follow-up and remedial treatment can be given before problems develop into handicaps. Under the combined screening programme, all Primary One students are given hearing and eyesight tests. Checklists and guides help teachers to detect children with speech problems and learning difficulties. Children requiring further
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assessments are given audiological, speech, psychological or educational assessments at special education services centres or at schools. Some are referred for ophthalmic advice.
Children identified as having special educational needs are integrated into ordinary schools as far as possible. They are placed in special schools only when their handicaps are such that they cannot benefit from the ordinary school programmes. In June 1996, there were 71 sight-impaired, 724 hearing-impaired and 128 physically handicapped students integrated into normal schools, with the help of supportive services from Education Department.
In April 1996, there were 63 special schools, including a hospital school, schools for children who were blind, deaf, physically handicapped, mentally handicapped or with adjustment problems. Seventeen schools provided residential places. Besides being staffed by specially trained teachers, the special schools were supported by specialists such as educational psychologists, speech therapists, audiologists, physiotherapists, occupational therapists, school nurses and social workers.
Special education classes in ordinary schools cater for children with sight, hearing and learning difficulties. Services for children integrated into ordinary classes include school-based or centre-based intensive remedial support in the basic subjects, behavioural guidance to children and advice to teachers on how to help children with special needs.
A home-based teaching programme let children who were home-bound for health reasons continue their education. A school-based remedial support programme and a school-based psychological service were also implemented to support secondary schools with a high intake of academically less-able students. These schools were given greater flexibility and additional manpower to provide remedial services for their students.
Special schools and classes generally follow the ordinary school curriculum, with adaptations or special syllabuses, where appropriate, to cater for the children's varied learning needs. Special schools give particular attention to daily living skills, and offer extra-curricular activities to enrich the practical life experiences of day and residential students. The Curriculum Development Council's Special Education Co- ordinating Committee, with members from government departments and schools, advises on the curricular aspects based on pupils' special educational needs.
The operation of the Supportive Remedial Service for hearing-impaired primary school students who attend mainstream schools is very effective and a two-year pilot project of the service for junior secondary students was launched in September 1994. It proved an effective support for these hearing-impaired students in mainstream secondary schools.
The three-year pilot project School-based Programme for Academically Gifted Children, which commenced in 1994 in 19 volunteer primary schools, will be evaluated in 1997, its final year of implementation. A report will be prepared to review the effectiveness of the project and to make recommendations regarding the future development of gifted education.
The Fung Hon Chu Gifted Education Centre was officially opened in December 1995. It provides the identified gifted primary and secondary students with suitable enrichment programmes and training courses. It also conducts various seminars and
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workshops to enhance understanding of the needs of gifted students among parents, teachers and other professionals.
International Schools
Several schools offer curricula designed to meet the needs of particular cultural or linguistic groups. The English Schools Foundation (ESF) operates nine primary schools (known as junior schools) and five secondary schools for children whose first language is English, and a special education school for English-speaking students with moderate to severe learning difficulties. The education provided is similar in content and method to that available in schools in Britain, and leads to British public examinations.
The ESF receives public grants based on those paid to local aided schools, and ESF schools charge fees to meet additional costs. After a review on ESF funding arrangements, completed in 1995, subsidies to ESF were brought into near-complete parity with local schools under new funding arrangements to be phased in over two years starting in September 1996.
Other international schools provide education based on the American, Australian, Canadian, French, Japanese, German-Swiss, Singaporean and Korean curricula and systems. In 1996, there were 18 such schools operating up to secondary level, 24 at primary level, and 24 kindergartens. Many non-profit-making international schools were eligible for the Hong Kong Government's grants of land at nominal prices and reimbursement of rates and sponsorship by their home governments or communities. A review on provision of international school places was completed and a new package of assistance introduced in 1995. Under this, the government has systematised the procedures to deal with land grant applications from non-profit- making international schools, and will provide a new interest-free loan up to the cost of constructing a standard-design primary or secondary public-sector school.
Support Services and Improvement Measures
A wide range of services, mostly provided or supported by the Education Department, reinforce teaching and learning in schools.
Educational Research
The Educational Research Section conducts research, develops tests, evaluates education programmes and monitors educational standards. The Hong Kong Attainment Tests developed by this section are administered yearly by primary and secondary schools to diagnose areas of strength and weakness so that appropriate guidance, counselling and remedial teaching can be provided. The results also help the Education Department to monitor standards over the years and across grade levels. This section also compiled education indicators for the school education system, and conducted an evaluation of the implementation of the Medium of Instruction Grouping.
Whole-School Approach to Guidance
The department encourages a whole-school approach to student guidance. The Student Guidance Section organises programmes, workshops and seminars in support of this approach and provides training to Student Guidance Officers/Teachers. It produces topical resource teaching kits to help teachers handle
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pupils with problems. It enforces compulsory education through identification of school dropouts and providing follow-up services, and ensures an adequate provision of study room facilities. Three studies were completed by the Student Guidance Section in 1996: understanding schools' needs; identifying the at-risk groups of pupils; and using peer support and life skill counsellors to tackle the drug problem.
Performance Pledge
The Board of Education monitors the department's performance against the targets and standards pledged through an Educational Services Liaison Sub-committee. The monitoring results show that the department fulfilled over 99 per cent of its pledges during the year. To explore the feasibility of extending the performance pledge programme to schools, a pilot scheme was initiated in April 1995. The programme was further extended to all government schools and four aided schools in May 1996.
Advisory Inspectorate
The Advisory Inspectorate advises schools on curriculum implementation, teaching methodology and educational resources; and offers in-service teacher education programmes in the form of short courses, seminars and workshops. Its teaching and resource centres offer resources and advice to kindergarten, primary and secondary teachers about language, mathematics, science, humanities, computer education, cultural crafts, music, kindergarten teaching and cross-curricular issues including `civic education, moral education, environmental education, sex/AIDS education and
drug education.
Curriculum Development Institute
The Curriculum Development Institute (CDI) is staffed by both civil servants and contracted educators. It develops and reviews curricula, liaising with the HKEA and tertiary institutions; helps schools implement curriculum policies and innovations; provides a secretariat for the Curriculum Development Council; and conducts research, experimentation and evaluation in curriculum planning.
The CDI continued to develop the Target Oriented Curriculum (TOC) and prepare for its full implementation in schools by phases. Progress was also made in the TOC assessment mechanism and schools were sent relevant guidelines after consultation.
Revision of the Guidelines on Civic Education in Schools was completed with emphasis on preparing students for the transition of Hong Kong to a Special Administrative Region. The new Guidelines were issued to all schools for implementation in September 1996. Work continued on projects including curriculum integration, curriculum modularisation and the development of curricula for the academically-gifted and the less able. The Fung Hon Chu Gifted Education Centre offered enhancement programmes for academically gifted pupils besides developing school-based projects and organising related training courses. A school-based curriculum tailoring scheme helped academic under-achievers. Facilitated by a Central Curriculum Development Support Team, the scheme was extended to a total of 80 schools in September 1996. Guides were produced on the curricula for students with various special education needs.
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Reading Scheme
The Hong Kong Extensive Reading Scheme was in its sixth year of operation at the secondary level benefiting 89 240 students from 2 231 Secondary 1 to 3 classes. It was extended to Primary 5 and 6, by phases, from September 1995. A total of 17 480 pupils from 437 classes took part in Phase 2 of the scheme.
Hong Kong Teachers' Centre
The Hong Kong Teachers' Centre, set up in 1989 to promote professionalism and a sense of unity among teachers, is supervised by an advisory management committee with wide representation from schools, teacher organisations and educational bodies. It is staffed by the Education Department. During the year, the centre organised, sponsored or hosted 700 activities for 50 000 participants. It maintained a professional library and published newsletters. Another centre was set up in Kowloon and began to provide services in October 1995.
Educational Television
This year marks the 25th Anniversary of Educational Television (ETV). The ETV programmes offer syllabus-based and enrichment programmes to support and supplement classroom teaching. Programmes on the subjects of Chinese language, English language, and Mathematics are offered to pupils from Primary 3 to Secondary 3. General Studies programmes are offered to pupils from Primary 3 to 6 while Science and Social Studies programmes are offered to pupils from Secondary 1 to 3. Teachers' and pupils' notes are also produced to help teachers fully utilise these programmes. All educational television programmes are jointly produced by ETV and Radio Television Hong Kong and are transmitted to schools by two local television stations.
Information Systems Strategy
A five-year information systems strategy was launched in 1993 to extend the use of information technology for the administration and management of schools. Computer systems and networks are being developed to link public sector schools and various sections of the Education Department. Teachers and school heads are also involved in the system development.
District Education Offices
The 19 district education offices provide advice and assistance to schools, teachers, parents and students, and facilitate communication with the Education Department. District Education Officers attend district board meetings to discuss educational
matters.
Careers and Guidance Services
The Careers and Guidance Services Section organises annual training courses, conferences and workshops for careers/guidance teachers and operates a guidance teacher resource centre to provide support materials for them. Its careers education centre provides a reference library on careers, local and overseas study opportunities for the public and a free advisory service on overseas studies. During the year, 2 506 students left to study in the UK (up to November 9), 2 607 left for Canada, 4 782 for the USA and 4 200 for Australia.
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Non-graduate Teacher Qualifications Assessment
The Non-graduate Teacher Qualifications Assessment Scheme was introduced in the 1992-93 school year to assess the qualifications and professional competence of intending teachers who obtained their qualifications and training outside Hong Kong. The assessment helps to increase the supply of qualified non-graduate teachers. A total of 69 candidates passed the required examinations in the 1996 cycle.
Student Discipline
A Student Discipline Section was set up in September 1996. The section provided teacher staff and school heads with effective management consultant services on discipline matters. It also advised schools on preventive measures, the setting up of reward and sanction systems and the handling of difficulties faced by schools over discipline.
New Immigrant Children from Mainland China
The Education Department, with the assistance of voluntary agencies, operated an induction programme for new immigrant children from mainland China to help them adapt to the local social and school environment. A total of 33 agencies helped run the programme, benefiting 12 342 new immigrant children. Feedback from teachers, students and the community has been very positive. To help immigrant children from Mainland China obtain schooling, the age for admission to all adult education programmes and courses was lowered from 18 to 15 from September 1996.
An extension programme on remedial English was operated to help new immigrant children from China catch up with schooling in Hong Kong. Advice was also given to teachers on tailoring the curricula in the subjects of Chinese language and English language for Primary 1 to Secondary 3 students.
Teacher Education and Quality
Pre-service and in-service teacher education programmes, at sub-degree and degree levels, are provided by tertiary institutions funded through the University Grants Committee. In-service professional development courses for teachers are also provided by the Education Department and professional organisations.
In the 1996-97 academic year, the Hong Kong Institute of Education (HKIED) offered 45 courses for more than 8 440 full-time and part-time students. These included pre-service Certificate in Education programmes; in-service initial training for kindergarten, primary, secondary, technical, commercial and special education teachers; refresher training courses for serving teachers in primary and secondary schools; advanced courses of teacher education for non-graduate secondary school teachers of cultural, practical and technical subjects and two new courses in Putonghua.
The Hong Kong Council for Academic Accreditation conducted an institutional review of the HKIEd in February 1996 to assess the suitability of its academic environment and processes for the development, introduction, conduct and maintenance of degree and related programmes. The institute was found to be creating a suitable environment for the development and introduction of degree programmes, although some operations needed to be developed further before launching such programmes.
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Piling for the institute's new campus in Tai Po was completed in February 1996. Superstructure works are in progress in four separate contract packages due for completion in July, August and October/November 1997.
Estimated to cost $2.312 billion, the new campus will provide academic, administrative, amenities and indoor sports accommodation, plus outdoor sports facilities, student hostels and staff quarters on completion in the summer of 1997.
Management Courses
The Education Department provides basic training in educational management and administration for primary/secondary school heads and senior teachers, and professional officers of the Education Department. Teachers of SMI schools were offered additional training opportunities to update their knowledge in leadership and strategic planning.
Council on Professional Conduct in Education
The council, set up in 1994, is a non-statutory body promoting professional conduct in education. It draws up operational criteria defining the conduct expected of an educator and advises the Director of Education, where necessary, on cases of disputes or alleged professional misconduct. It has 25 elected members from schools and educational organisations, and three members appointed by the Director of Education. It aims to enhance the image and professionalism of teachers and to attract more high-calibre young people into the teaching profession.
Technical Education and Industrial Training
A comprehensive system of technical education and industrial training provides the economy with well-trained manpower at all levels. Publicly-funded courses are provided by the Vocational Training Council (VTC) at two technical colleges, seven technical institutes and 24 training centres. Separate levy-funded authorities provide industrial training for the clothing and construction industries.
Technical Education
Technical education at higher technician level is provided by the VTC's two technical colleges at Chai Wan and Tsing Yi. These offer higher diploma (normally three years full-time) and higher certificate (two or three years part-time) courses in applied science, business administration, computing and mathematics, construction, design, electrical and communications engineering, electronic engineering, hotel, catering and tourism management, manufacturing engineering and mechanical engineering.
Short courses are also offered to people in employment. In July, 1 325 full-time, 668 part-time day and 1 554 part-time evening students graduated from the technical colleges. In November, enrolment totalled 5 141 full-time students on 34 courses, and 1 282 day release and 7 449 evening students on 45 part-time courses.
The seven technical institutes provide technician and craft level courses in accounting, applied science, child care, clothing technology, commercial studies, computing, construction, design, electrical engineering, electronic engineering, hairdressing, hotel-keeping and tourism, manufacturing engineering, marine engineering and fabrication, mechanical engineering, motor vehicle engineering, printing and textiles. Technician level courses are offered for Secondary 5 leavers
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while craft level courses are for those who have completed at least Secondary 3. These courses are offered on either a full-time, part-time day release, or part-time evening basis.
In July, 4949 full-time, 1822 mixed full-time, 4 121 part-time day and 7 890 evening students graduated from the technical institutes. In November, the total enrolment in technical institutes was of 10 157 full-time, 3 989 mixed full-time, 11 089 part-time day and 23 602 evening students on some 293 courses.
Industrial Training
Besides offering pre-employment training to new entrants to the labour market, the VTC's 24 training centres also offer upgrading training for in-service personnel at all levels. This includes courses in precision tool and die design, application of CAD/CAM to die manufacture, electronic systems design, and object-oriented technology and open systems in information technology. Some 46 199 full-time and part-time places were available during the year. Trade tests were offered for employees in the automobile, building and civil engineering, electrical, jewellery, machine shop and metal working, plastics and printing industries.
The Construction Industry Training Authority, established in 1975, operates three training centres and a management training and trade testing centre offering a total of 21 167 training places for the 1996/97 training year. Full-time courses are offered to train craftsmen, operatives and supervisors in the construction field; and there are also various continuing education and training courses for in-service construction personnel.
The authority is funded by a levy of 0.25 per cent on the value of all construction works exceeding $1 million. To help improve construction site safety, certification tests for operators of construction plants, temporary suspended working platforms and builders' lifts are conducted. The authority also conducts trade tests for construction workers of 15 principal trades with a view to upgrading the quality of construction works.
The Clothing Industry Training Authority was established in 1975 to provide training for the woven garment, knitwear, fur and footwear industries. It is financed by a levy of 0.03 per cent on the FOB value of clothing and footwear products exported from Hong Kong. In 1995-96 two training centres trained 5 950 people at technician, craftsman and operative levels on full-time and part-time courses.
Management Development
The VTC's Management Development Centre of Hong Kong aims to develop, promote and extend managerial effectiveness in Hong Kong. Major activities include the development and distribution of locally relevant management learning material, the provision of workshops and seminars for managers, and courses for management trainers.
Training in New Technologies
The New Technology Training Scheme administered by the VTC aims to facilitate the adoption of new technologies beneficial to Hong Kong's industry and commerce. Grants are provided to help companies send their employees to acquire skills in new
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technologies. During the year, the VTC received 837 applications of which 701 were approved.
Apprenticeship Schemes
The Apprenticeship Ordinance promotes and regulates the employment and training of apprentices. Anyone aged between 14 and 18 working in any of the 42 designated trades who has not already completed an apprenticeship in the trade must enter into a contract of apprenticeship with the employer. The contract must be registered with the Director of Apprenticeship who is concurrently the executive director of the VTC. Contracts in other trades may also be registered voluntarily.
Inspectors of Apprentices advise and help employers and apprentices in training and employment matters. They visit workplaces to ensure that training schemes are properly implemented. A free placement service is offered to job-seekers interested in an apprenticeship. During the year, 3 500 contracts were registered (1 000 in non- designated trades), covering 2 700 craft and 800 technician apprentices. At the end of December, 7 900 apprentices were being trained.
Training for People with a Disability
Five skills centres, three run by the VTC and two by voluntary agencies, prepare disabled people for open employment or mainstream technical education and industrial training. They provide 845 full-time places, of which 318 are residential. Support services provided by the VTC include a vocational assessment service, using internationally-recognised tests and work samples designed to match local skill profiles. All mildly mentally handicapped students attend a specific assessment programme in their final school year, while a comprehensive programme is used in assessing the more complex cases.
The VTC's Technical Aids and Resource Centre designs and makes aids for disabled people to enhance their training and employment prospects, and provides information and resource materials on vocational rehabilitation.
An inspectorate unit advises skills centres on administration, curriculum, training methods and standards, and provides guidance to disabled students on training courses. The unit works closely with the Labour Department's selective placement service to ensure that training matches the local employment market demand. About 78 per cent of disabled people completing full-time courses in technical institutes and skills centres entered open employment or enrolled in further courses in mainstream technical education during the year.
Tertiary Education
Ten years ago, less than five per cent of the 17-20 age group could receive tertiary education in Hong Kong. By 1994-95, this figure had been increased to 18 per cent, with 14 500 places available for first-year, first-degree courses. A further six per cent of the relevant age group now have access to first year sub-degree courses. Degrees up to doctorate level awarded locally are recognised by institutions of higher learning around the world. Academic standards are guaranteed by the appointment of external examiners from prominent overseas universities and colleges. The Hong Kong Council for Academic Accreditation validates courses and programmes offered by Hong Kong's non-university, degree-awarding institutions. There are eight
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publicly-funded tertiary institutions under the aegis of the UGC, of which six are fully self-accrediting universities, one is a degree-awarding liberal arts college and one is the Hong Kong Institute of Education, a teacher-training institution.
The Tertiary Institutions
The University of Hong Kong is the territory's oldest tertiary institution. It was founded in 1911, continuing the work of a college of medicine dating from 1887. Its 10 800 full-time and 3 220 part-time students are enrolled in nine faculties: architecture, arts, dentistry, education, engineering, law, medicine, science and social sciences. Courses and programmes are at first degree, taught master's and postgraduate research levels.
The Chinese University of Hong Kong was established in 1963 by bringing together New Asia College (founded in 1949), Chung Chi College (1951) and United College (1956). A fourth college, Shaw College, was founded in 1986. The university has 9 630 full-time and 630 part-time undergraduate students, and 1 080 full-time and 1 480 part-time postgraduate students in seven faculties: arts, business administration, education, engineering, medicine, science and social science.
Lingnan College was founded in 1967 as a private college to continue the fine traditions of the former Lingnan University in Guangzhou (Canton), China. It became a publicly funded post-secondary college in 1979 and was upgraded to a degree-awarding institution in 1992. It offers four Bachelor's honours degree programmes in Business Administration, Chinese, Social Sciences and Translation. In December 1996, undergraduate enrolment was 2 120 full-time students. The college offers two Master of Philosophy degrees in Social Sciences and Translation. Another two Master of Philosophy degrees, one in Chinese and the other in Business will be introduced in 1997-98. The college moved to its new campus at Fu Tei, Tuen Mun, in 1995.
The Hong Kong Polytechnic University, established in 1972 as the Hong Kong Polytechnic and upgraded to a fully self-accrediting university in 1994, offers postgraduate, degree and sub-degree courses in six faculties: applied science and textiles, business and information systems, communication, construction and land use, engineering, and health and social studies. It has close links with industry, commerce and the community. Concurrent work and study are encouraged through part-time and sandwich courses. Enrolment in December was 11 200 in full-time and sandwich courses, and 9 090 in part-time courses.
The Hong Kong Baptist University was founded by the Baptist Convention of Hong Kong in 1956 as the Hong Kong Baptist College. In 1983, it was incorporated under its own ordinance and became fully funded by the government. Since 1986, it has been empowered to award degrees. It was upgraded to a fully self-accrediting university in 1994. The University now offers first-degree courses, and taught and research postgraduate courses. It has 4 230 full-time and 520 part-time students in five faculties/schools: arts, business, communication, science and social sciences.
The City University of Hong Kong, founded in 1984 as the City Polytechnic of Hong Kong and upgraded to a fully self-accrediting university in 1994, has 10 530 full-time, 6770 part-time and 420 sandwich course students. The four Faculties - Business; Humanities and Social Sciences; Law; and Science and Technology - offer first-degree courses, postgraduate diplomas and taught master's degree courses as
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well as Master of Philosophy and Doctor of Philosophy programmes by research. Diploma and Higher Diploma courses are offered by the College of Higher Vocational Studies through its Divisions of Commerce, Social Studies, Language Studies and Technology.
The Hong Kong University of Science and Technology, which was opened in 1991, awards bachelor's, master's, and doctoral degrees in three schools: Science, Engineering, and Business and Management. A fourth school, Humanities and Social Science, offers graduate degrees and provides general education for all under- graduates. In December, the university had 5 610 undergraduates and 1 380 graduate students.
The Hong Kong Institute of Education (HKIEd) was established in September 1994 by merging the four Colleges of Education and the Institute of Language in Education. Since its establishment, the HKIEd has provided pre-service sub-degree teacher education courses targeted for teaching from pre-primary to secondary levels. Enrolment in December was 3 080 full-time and 4 130 part-time students. It is planning to launch degree courses in Education. Since December 1996 the HKIEd has been under the aegis of the UGC. A new, permanent campus in Tai Po is scheduled for completion in phases from mid-1997.
The Open Learning Institute of Hong Kong (OLI) was established in 1989 to provide working adults with more opportunities for higher education through open access and distance-learning courses. It has been required to be self-financing since 1993-94. In October, more than 20 400 students were enrolled in 155 courses leading to degree, sub-degree and post-graduate qualifications in four schools: Arts and Social Sciences, Business and Administration, Education, and Science and Technology, and the Centre for Continuing and Community Education. By the end of the year, 3 277 students had graduated with a bachelor's degree. Two new degree programmes a Bachelor of Arts in Language and Translation and a Master of Education, introduced during the year, were well received by hundreds of applicants. The OLI has relocated its headquarters from Mong Kok to a permanent campus building in Ho Man Tin, which was completed in April. Financial support has been secured for a $40 million electronic library and it is expected to come into full operation by 1998. In October, the OLI was granted self-accrediting status, subject to periodic external institutional review by the HKCAA.
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Post-Secondary College
Hong Kong Shue Yan College, registered in 1976 under the Post Secondary Colleges Ordinance, operates a four-year diploma programme. Its faculties of arts, social sciences and commerce include 13 departments offering day and evening courses to 2 548 students. The college receives no public funding, but its students may apply for government grants and loans.
Adult Education
Many formal and informal opportunities are available for adults to study in their spare time, either for personal development or to update knowledge and skills relevant to their work. Private schools offer language, business and computer courses. The British Council, Alliance Francaise, Goethe Institute and Japanese Consulate offer language courses.
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During the year, the Education Department provided formal courses of second- chance education from primary to secondary six levels to adult learners at 42 centres. The department also subvented adult education programmes organised by voluntary agencies.
The British Council
The British Council has been active in Hong Kong since 1948. It aims to offer British skills and expertise in the key areas of science and technology, education, training, the arts and English language teaching and learning, to assist Hong Kong's continuing educational and economic development into the next century.
English language teaching is one of the council's major programmes in Hong Kong. It collaborates increasingly with the Education Department, the HKIEd and bodies such as the Language Fund, to improve standards of English teaching and learning in the territory. Through its general and business English courses, intensive summer programmes for Chinese-medium S6 and S7 students, distance-learning programmes, summer schools and teacher training courses, the English Language Centre provided English language-learning opportunities for more than 40 000 Hong Kong residents in 1995-96. The council also arranged for 125 student teachers to visit the UK for courses jointly funded by the Hong Kong Institute of Education.
The council works closely with the government, higher education and other organisations to provide access to British expertise in areas such as the environment, law, planning, education, medicine, nursing, and public administration. A programme of research jointly funded with the Research Grants Council supported some 15 joint projects in 1996. British Studies modules have been presented to nascent Centres for European Studies at the University of Hong Kong and Hong Kong Baptist University, and a series of electronic mail links has been established between 10 schools in the UK and 10 in Hong Kong.
The council's library and information services are open to all Hong Kong residents and cover aspects of contemporary British life and culture, with an emphasis on management skills and English-language teaching. The collections include books, magazines, newspapers, videos, CD-ROM, music on CD and audio tapes. The library facilities are computerised and free to students of the Council's English Language Centre. Others are charged a nominal annual subscription.
The Study in Britain Centre (formerly known as the Education Counselling Service) provides free and impartial advice to students on educational opportunities available in Britain. In 1995-96, nearly 37 000 students used the service, which also organises regular exhibitions, seminars and interviews so that students can learn first-hand about studying in Britain. The council opened a Distance Learning Centre in January 1995 to provide potential students in Hong Kong with a reliable and objective source of detailed information about UK courses and awarding institutions. It provides easy access to sample course materials.
The council moved into new, purpose-built premises at No 3, Supreme Court Road in December 1996. An entire floor is devoted to information on and services for the UK education and training providers and two other floors will house some 23 classrooms, as well as registration and support services for language learners.
The Cultural Exchanges Unit works with local organisations to present the best of British culture and arts to Hong Kong audiences.
11 HEALTH
THE Government's health care policy is that no one should be denied adequate medical treatment through lack of means. To this end, it provides a range of services and facilities to complement those available in the private sector and to meet the needs of less-affluent patients.
The Organisational Framework
The Department of Health is the government's health adviser and regulatory authority. It safeguards community health through a range of promotional, preventive, curative and rehabilitative services. It also works with the private sector and teaching institutions to deliver primary health care.
The Hospital Authority is an independent body which was established in 1990 to improve the management of all public hospitals. It provides medical treatment and rehabilitation services to patients through hospitals, specialist clinics and outreaching services.
During the year, the number of hospital beds increased by to 29 856, representing 4.77 beds per thousand population. The total comprises 25 500 beds in hospitals run by the Authority, 3 515 in private hospitals, 769 in correctional institutions and 72 operated by the Department of Health. In December, 9 196 doctors were registered with the Medical Council and 36 395 nurses were registered with the Nursing Board.
Health of the Community
Hong Kong has worked to achieve health indices which compare favourably with those of developed countries. In 1995, the infant mortality rate was 4.4 per 1 000 live births and the average life expectancy at birth was 76 years for males and 81.5 years for females.
Health problems in Hong Kong are mostly due to lifestyle-related chronic degenerative diseases. The three leading causes of death in 1995 were cancers (31 per cent), heart diseases (16 per cent) and cerebrovascular disease (11 per cent). These diseases affect mainly elderly people and will continue to dominate the mortality statistics as the population ages.
Infectious diseases
There are 26 statutory notifiable diseases in Hong Kong, including three quarantinable diseases, namely cholera, plague and yellow fever. In 1996, about 8 700 cases of notifiable infectious diseases were reported, of which more than 75 per cent were due to tuberculosis.
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Children in Hong Kong are immunised against tuberculosis, diphtheria, pertussis, poliomyelitis, tetanus, hepatitis B, measles, mumps and rubella. Due to high vaccine coverage, diseases such as diphtheria and poliomyelitis have been virtually been eradicated and the incidence of preventable infectious diseases among children is relatively low.
HIV Infection and AIDS
In 1996, about 100 cases of HIV (Human Immunodeficiency Virus) infection and 50 AIDS (Acquired Immunodeficiency Syndrome) patients were reported. The cumulative total was about 770 cases of HIV infection and 240 AIDS patients.
The Advisory Council on AIDS plays a key role in supervising Hong Kong's overall AIDS programme. Its Strategies for AIDS Prevention, Care & Control in Hong Kong paper serves as the blueprint for Hong Kong's policy on all AIDS-related issues. In November 1996, the Advisory Council hosted the first Hong Kong AIDS Conference, with the theme Building New Hope Together. The conference was attended by more than 400 participants from medical, social and educational fields, as well as the general public.
The AIDS Trust Fund provides financial assistance to those infected with HIV through transfusion of blood or blood products in Hong Kong before August 1985. It supports community projects which provide services to those with HIV/AIDS, increase AIDS awareness or remove discrimination against those infected with the virus. So far, a total of $32 million has been disbursed.
The Department of Health's AIDS Unit provides counselling and medical consultation for persons infected with HIV or at risk of infection. Members of the public can use a telephone hotline (2780 2211) to hear recorded messages in Cantonese, English and Putonghua, to obtain fax messages, or talk in confidence to trained counsellors. Recorded messages in Thai, Tagalog and Vietnamese are also available. In 1996, five AIDS Awareness Ambassadors were appointed to help promote public awareness.
The participation of non-governmental organisations (NGOs) is crucial in the fight against AIDS and eight NGOs are now involved. By the end of 1996, a total of 75 companies and organisations had joined the Community Charter on AIDS, pledging to adopt a positive and non-discriminatory policy towards people with HIV or AIDS.
Hospitals and Development Programmes
Demand for hospital services remained high. In 1996, there were 960 800 hospital discharges and deaths and 6 335 400 attendances at out-patient and specialist clinics. Accident and emergency departments of major public hospitals had 2 089 300 attendances or 5 720 per day.
Projects in the hospital development programme progressed satisfactorily. The Pamela Youde Nethersole Eastern Hospital, which opened in 1993, had 1 500 beds available and will eventually have 1 620. Commissioning began in the year for the Tai Po Nethersole Hospital. New hospitals under development are Tai Po Infirmary and Convalescent Hospital, North District Hospital, Tseung Kwan O Hospital, and Kowloon Medical and Rehabilitation Centre. Several other hospitals and specialist clinics were undergoing redevelopment or major refurbishment.
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Primary Health Care
Primary health care, which emphasises the promotion of general health and prevention of disease, is recognised world-wide as the most cost-effective way to provide health care services.
District Health System
The District Health System is a co-ordinated approach to providing primary health care services. It allows for the delivery of services most relevant to the needs of the community through health care providers within the district working as a team. The setting up of district health committees, with members drawn from community service providers and the public, provides a forum for community participation in the identification of health care needs and implementation of programmes. The system was extended to other parts of Kowloon in 1996 after a successful trial in Kwun Tong.
Clinics
The Department of Health operates 60 general out-patient clinics, providing affordable primary care to the public. Mobile dispensaries, floating clinics and a flying doctor service cater to residents of remote areas and outlying islands. The department also operates 48 mother and child health centres, 13 student health centres, 16 tuberculosis and chest clinics, 13 social hygiene clinics, five dermatology clinics, five clinical genetic clinics, four child assessment centres and other clinic services. Total attendance in 1996 was more than 11 million.
Private-sector services are provided by medical practitioners under the Estate Doctor's Association, who run clinics in housing estates to offer a low-cost service for residents, medical practitioners in private practice and 198 clinics registered under the Medical Clinics Ordinance.
Health Education
The Central Health Education Unit plans, organises and promotes health education activities. With collaboration and support from other agencies, a Healthy Lifestyle Campaign was introduced in 1996 which provided health information for the public through a number of interesting and exciting programmes. The aim was to cultivate the concept of healthy living.
Two innovative health education facilities namely, the Interactive Learning Computer System and the Donormobile were realised in 1996 with sponsorship from the Hong Kong Jockey Club. The former is an advanced bilingual computer system which offers up-to-date information on 19 health topics. The latter is a truck which tours Hong Kong to spread the message of organ donation to the public.
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The Health Ambassador Programme was expanded in 1996. Volunteers from four major groups senior citizens, teachers, women and students are recruited and trained to promote health education activities within their own community. The computerised 24-hour telephone health education service (2833 0111) was also expanded and reorganised to provide more than 220 messages on various health topics.
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Dental Services
The Dental Service aims to improve the population's oral health through preventive and promotive oral health care services. Promotional activities are organised throughout the year to increase the level of oral health care awareness. The community has also benefited from the fluoridated water supply which results in a reduced rate of dental decay.
All of Hong Kong's 212 000 pre-school children are covered by an oral health education programme delivered through maternal and child health centres, kindergartens and pre-school centres. A further 385 580 or 82.4 per cent of the primary school population received annual dental examinations and basic dental care through the School Dental Care Service.
A 24-hour interactive voice response system (hotline number 2713 7028) provides voice and fax messages about the School Dental Care Service and oral health care information. An outreaching oral health education facility catering to a wide section of the community was launched in the latter part of the year through the oral health education bus.
Specialist dental services are provided to specific groups including hospital patients and special needs groups. An emergency dental service is provided to the general public at 11 designated dental clinics throughout the territory.
Family Health
The Family Health Service offers a comprehensive health programme for women and children aged below six years through 48 maternal and child health centres and two woman health centres. Health advice, physical examination, immunisation and comprehensive observation services are provided. About 96 per cent of new-born babies attended such centres during the year. Antenatal, postnatal medical consultations and family planning services are also available for women of child- bearing age. After the first women's health centre opened at Lam Tin in 1994, a second began operating at Chai Wan in March 1996 to provide a health promotion and screening programme for women aged 45 to 64.
The government-subvented Family Planning Association of Hong Kong runs eight birth control clinics and three youth health care centres, providing services in fertility regulation, contraception, male and female sterilisation, gynaecological check-ups, pre-marital check-ups and youth counselling. It also conducts programmes in family life education and sexuality education, and carries out motivational work through outreach activities and publicity campaigns.
Student Health Service
The Student Health Service, which emphasises health promotion, disease prevention and continuity of care, was extended to secondary schools in 1996. A total of 11 student health service centres and two special assessment centres have been opened to provide free health assessment, individual health counselling and health education to all primary and secondary school students.
School health inspectors also visit schools regularly, advising them on environmental hygiene and sanitation of school premises. School health officers and nurses advise on the control of communicable diseases, and organise health education activities and immunisation campaigns.
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Medical Care for the Elderly
The provision of medical services for elderly patients is a priority area. Geriatric services are now provided in all acute hospitals. Eight community geriatric assessment teams and eight psychogeriatic teams provide specialist support to elderly persons living in subvented residential homes, as well as to their carers. There are also 447 geriatric day places provided for elderly patients in public hospitals.
Nursing homes with medical and nursing facilities are being developed to bridge the gap between existing care-and-attention homes and infirmaries. Non-profit-making organisations are being invited to build and manage some of these homes with assistance from the government in the form of land, capital and recurrent subvention. There are six nursing homes under construction with a total provision of 1 400 beds. The first nursing home is expected to commence operation towards the end of 1997.
The Department of Health runs four elderly health centres to provide health screening, counselling and health promotion activities for elderly people. Health Ambassador training courses for the elderly, an innovation to promote elderly health through community participation, made its debut in 1996.
Services for the Mentally Ill and Mentally Handicapped
At the end of 1996, 4 075 beds were provided in psychiatric hospitals and 1 661 beds in public psychiatric units of general hospitals. The number of psychiatric day hospital places remained at 574. The redevelopment of Castle Peak Hospital, one of the territory's two main psychiatric hospitals, is under way. An additional 712 psychiatric beds are being planned by the year 2000.
Community work and aftercare units of psychiatric hospitals help discharged patients. The community psychiatric nursing service and domiciliary occupational therapy service, in particular, aim to provide continual care and treatment programmes for discharged mental patients in their home settings. This assists. patients' social readjustment while educating them and their families on mental health. Three community psychiatric teams and eight psychogeriatic teams have been set up to provide designated care and rehabilitation programmes to psychiatric and psychogeriatric patients. There are 12 community psychiatric nursing service centres. Other complementary rehabilitative services include day-centres, half-way house, long-stay care homes, vocational training, selective placement and social clubs, run by government departments and non-government organisations.
Severely mentally handicapped persons requiring intensive nursing care and rehabilitation services are cared for at Tuen Mun Hospital (200 beds), Caritas Medical Centre (300 beds) and Siu Lam Hospital (300 beds). Two outreach teams have been established to provide services for early intervention.
Community Nursing Service
The Hospital Authority's Community Nursing Service (CNS) provides rehabilitative nursing care and treatment to the sick, the elderly infirm and the disabled through a network of 37 CNS centres. During the year, 27 260 patients were served and 376 988 home visits were made.
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Port Health
The Port Health Office enforces measures in the Quarantine and Prevention of Disease Ordinance and the International Health Regulations to prevent the introduction of quarantinable diseases into Hong Kong by air, land and sea. The service regularly exchanges epidemiological information with neighbouring countries and the World Health Organisation.
Radiation Health
Radiation Board inspectors carried out 700 on-site radiological safety inspections on medical, commercial and industrial premises in 1996. The Radiation Health Unit monitored the radiation exposure of 6 386 workers, detecting an average individual occupational dose of 0.2 millisievert against a regulatory limit of 20 millisievert. The Environmental Radiation Monitoring Programme detected no significant change in the background radiation level in Hong Kong during the year.
The Department of Health is collaborating with the Environmental Protection Department in commissioning a consultancy to construct a low-level radioactive waste storage facility. Work to condition the waste currently in store in the Queen's Road East Tunnel storage facility is continuing, in preparation for its transfer to a new facility by the end of 1997.
Medical Charges
Fees in public hospitals and clinics are heavily subsidised. Patients in general wards of public hospitals are charged $68 a day. This covers food, accommodation, tests, medicine and surgery or other treatment. Some private beds are provided at major public hospitals with higher maintenance and treatment charges.
A consultation at a general out-patient clinic costs $37, while a specialist consultation costs $44. Physiotherapy, occupational therapy and child assessment services are $44 per session. Attendance at geriatric or psychiatric day centres and home visits by community nurses cost $55 per session. Fees may be reduced or waived in cases of financial hardship.
Smoking and Health
The Hong Kong Council on Smoking and Health is an independent statutory body, established in 1987 to acquire and disseminate information on the hazards of using tobacco products, and to advise the government on matters of smoking and health. In 1996, the council organised the Hong Kong Conference on Smoking and Health. It attracted international and local speakers who discussed the issues of tobacco advertising, sponsorship, youth education and health. To counter the trend of tobacco advertisers to reduce the visibility of health warnings in printed and display advertisements, legislation came into effect to require warnings to appear in black lettering/characters on a white background.
Training of Medical and Health Personnel
The University of Hong Kong and The Chinese University of Hong Kong provide basic training of doctors. Their medical student intake in 1996 was 170 and 171, respectively. Under the Licentiate Scheme of the Hong Kong Medical Council, 34 externally-trained doctors passed the local licentiate examination in 1996.
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The Hong Kong Academy of Medicine is an independent statutory body with the authority to approve, assess and accredit all post-internship medical training. Its 14 colleges conduct training and examinations to award specialist qualifications to qualifying candidates.
The School of Public Health Nursing in the Department of Health provides a full- time in-service training programme for registered nurses which leads to a diploma in public health nursing studies. It also runs various short courses for enhancing and updating professional knowledge of all grades of nurses.
Training in dentistry is available at the University of Hong Kong, which produced 38 dentists in 1996.
Government Laboratory
The Government Laboratory provides regulatory testing services in the areas of public health, environmental protection, consumer protection and commodities testing. Samples of fresh produce and cooked, processed and preserved food are regularly examined for composition, additives, toxic residues and contaminants. During the year, more than 52 000 laboratory tests were conducted to ensure the wholesomeness of food. Special investigations were also carried out to study phthalates in milk products and polynuclear hydrocarbons in heated edible oils used in food establishments.
Work has continued on the examination of monthly samples of cigarette brands on sale in Hong Kong in order to determine their tar and nicotine yields. The results from this testing programme are published annually to help implement the government's anti-smoking policy.
Pharmaceutical products are tested regularly to check compliance with pharmacopoeia specifications and health standards, so as to protect the public from sub-standard or defective medicine. Interest in the safety of some common Chinese herbal preparations is increasing.
An important part of the laboratory's work concerns consumer goods safety, including toys and children's products. This activity has continued to grow steadily in recent years. Articles examined have ranged from aquatic toys to folding tables and strollers. Dangerous substances surveyed for occupational health and safety in factory premises as well as pesticide formulations certified for registration purposes continued to feature in the laboratory's work.
Traditional Chinese Medicine
The Preparatory Committee on Chinese Medicine (PCCM) was set up in April 1995 to advise on a statutory framework for the promotion, development and regulations of traditional Chinese medicine (TCM) in Hong Kong. In 1996, it completed a territory-wide enrolment exercise for TCM practitioners and was finalising its recommendations on the criteria for the proposed statutory registration of TCM practitioners. It had also revised the list of potent/toxic Chinese herbs and published a health education leaflet on the safe and proper use of traditional Chinese medicine.
Drug Abuse and Trafficking
The government aims to stop the illicit trafficking of drugs into and through Hong Kong; to develop a comprehensive treatment and rehabilitation programme for drug 167
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abusers; to dissuade people, in particular the young, from experimenting with drugs; and to eradicate drug abuse from the community.
Data collected by the government's Central Registry of Drug Abuse in 1996, based on 36 000 reports on 20 000 persons, indicated that 88 per cent of drug abusers were male and 12 per cent female, 54 per cent were aged over 30 years, 28 per cent were 21 to 30 years old and 18 per cent were aged under 21.
Heroin is the predominant drug of abuse in Hong Kong, and was used by 87 per cent of the persons reported to the registry. Other common drugs of abuse included cannabis, cough medicine and various psychotropic substances.
A total of 4 500 drug abusers came to registry's notice for the first time in 1996. Of the new cases, 80 per cent were male, 20 per cent were female and 46 per cent were people below the age of 21.
Overall Strategy and Co-ordination
The government adopts a five-pronged approach in combating drug trafficking and abuse law enforcement, preventive education and publicity, treatment and rehabilitation, research and international co-operation.
Effective law enforcement curtails illicit drug supply and induces drug abusers to seek treatment voluntarily. It also brings compulsory treatment to many who cannot otherwise be persuaded to seek help. Comprehensive treatment services are provided to meet the different needs of drug abusers from varying backgrounds.
Preventive education and publicity are organised on a territory-wide basis and at the local level to heighten public awareness of the drug problem and to encourage people to adopt a drug-free lifestyle. Research studies are conducted on various aspects of the drug abuse problem and the findings facilitate the planning of suitable anti-drug strategies and programmes. Co-operation at the international level, through exchange of information and experience and joint action against illicit trafficking, enhances the effectiveness of efforts in all these areas.
These anti-drug efforts are co-ordinated by the Action Committee Against Narcotics (ACAN), a non-statutory body which has non-official and government members. It is the government's advisory body on all anti-drug policies and activities and is serviced by the Narcotics Division of the Government Secretariat, which is headed by the Commissioner for Narcotics.
Governor's Summit Meeting on Drugs
In May 1996, the Governor chaired the second Drugs Summit to review progress made on the Beat Drugs campaign launched in March 1995, and to explore what new initiatives were needed to further strengthen the campaign. It brought together 270 participants from a wide cross-section of the community who are concerned with anti-drug work. The Governor further boosted the Beat Drugs campaign and announced a new 32-point Forward Action Plan to tackle the drug problem. A special action group under ACAN considered proposals put forward and submitted its report to the Governor in September 1996. Its recommendations were subsequently followed up with progress reports published regularly.
'Student has a smile for a Red Cross worker during a blood donation session
at San Wui Commemorative Society Chan Pak Sha School in Wong Chuk Hang. The Red Cross visited 365 secondary schools during the year, collecting
35 763 units, about one-fifth of the total 190 298 units donated.
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A young patient has her eyes checked during a visit to a student health care centre at Lam Tin. The Student Health Service, which emphasises health promotion, disease prevention and continuity of care, was extended to secondary schools in 1996. BELOW: A paramedic from the Fire Services Department Ambulance Service answers an emergency call. The department conducted a pilot scheme in 1993 and now has more than 150 paramedics trained to give patients pre-hospital care such as cardiac monitoring, defibrillation and selective drug treatment, enhancing their chances of surviving. Non-emergency ambulance services are being transferred to the Hospital Authority in a move that should be completed in April 1997.
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▲ The newly opened extension to
Wong Chuk Hang Hospital is set against a lush green backdrop at Aberdeen, on the south side of Hong Kong island.
RIGHT: An elderly patient is helped along the path to recovery after treatment at the hospital.
PREVIOUS PAGE: Wisdom about teeth is imparted to young pupils during a dental hygiene session at a Kowloon dental clinic run by the Oral Health Education Unit of the Health Department. A total of 11 student health service centres and two special assessment centres were opened during the year to provide free health assessment, individual health counselling and health education to all primary and secondary school students.
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The Beat Drugs Fund
In March 1996, the Finance Committee of the Legislative Council approved a grant of $350 million for setting up the Beat Drugs Fund. It aims to promote worthwhile anti-drug activities which can help reduce the problem of drug abuse, particularly among the young, and to promote community-wide efforts and programmes in the campaign against drug abuse.
The fund is administered by the Beat Drugs Fund Association, on the advice of ACAN, and applications are invited twice each year. Results of the first tranche of applications were announced in September 1996. A total of $8.7 million was disbursed.
Legislation and Law Enforcement
Further progress was made during the year towards enabling the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances to be extended to Hong Kong. The Control of Chemicals Ordinance came into operation on January 1, 1996, giving effect to Article 12 of the convention by extending statutory licensing control to some chemicals which can be used to make dangerous drugs. The other main international agreements in this area, the 1961 Single Convention on Narcotic Drugs as amended by the 1972 Protocol and the 1971 Convention on Psychotropic Substances, have already been extended to the territory. In June 1996, legislative amendments were passed to tighten up record-keeping requirements on the acquisition and supply of dangerous drugs, and drastically increasing fines for offences in contravention of such requirements from $50,000 to $450,000. The amendments have helped to strengthen the law enforcement agencies' ability to tackle the problem of improper supply of dangerous drugs by unscrupulous authorised persons.
During the year, vigorous law enforcement efforts have produced considerable success in terms of seizures and arrests, both at home and overseas. The Royal Hong Kong Police Force and the Customs and Excise Department seized some 221 kilograms of heroin, 8 822 kilograms of cannabis, 43 kilograms of methamphetamine, 16 kilograms of cocaine, and substantial quantities of various narcotics, analgesics and tranquillisers, while 15 028 persons were arrested for various drug offences. Joint operations with overseas law enforcement agencies neutralised several international drug trafficking syndicates. Substantial quantities of dangerous drugs were seized and ringleaders arrested locally and abroad.
Since the enactment of the Drug Trafficking (Recovery of Proceeds) Ordinance, assets valued at $123.4 million have been ordered confiscated and $208.9 million had been paid to the Hong Kong Government by the end of 1996. Further assets amounting to $143.6 million have been placed under restraint.
Treatment and Rehabilitation
The main types of treatment and rehabilitation programmes include a compulsory drug addiction treatment programme operated by the Correctional Services Department for convicted drug abusers; a voluntary out-patient methadone treatment programme provided by the Department of Health; voluntary in-patient programmes run by the Society for the Aid and Rehabilitation of Drug Abusers (SARDA) and other non-governmental organisations including several Christian
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therapeutic treatment agencies; counselling services for psychotropic substance abusers provided by PS33 of the Hong Kong Christian Service and SARDA, and six substance abuse clinics operated by the Hospital Authority.
During the year, considerable success was achieved in fostering public acceptance of drug-treatment facilities. Local support had been secured for the establishment of two new residential treatment centres for young opiate abusers. SARDA's Sister Aquinas Memorial Women's Treatment Centre was relocated from Sha Tin to North District in December 1996, with its capacity increased from 39 to 57 beds. A new counselling centre for psychotropic substance abusers in the New Territories, operated by Caritas-Hong Kong, commenced operation in July 1996. A new team of specially trained social workers was also set up to help at-risk youths who occasionally abuse drugs.
Preventive Education and Publicity
Anti-drug preventive education and publicity programmes in 1996 continued to focus on encouraging young people to develop healthy and positive attitudes and to say 'no' to all drugs; educating them on the building up of life skills; and helping young people to resist temptation from their peers. Programmes were also designed to foster a community-wide education and support effort to halt the growing trend in drug abuse by young people. During the year, 27 district campaigns were held, involving the community through visits, camps, seminars, carnivals, variety shows, competitions and exhibitions.
The Narcotics Division's school talk team gave 534 drug education talks to 113 076 students in 428 primary and secondary schools and technical institutes. Talks were also organised for members of youth organisations, parents, and juvenile offenders at the boys' and girls' homes operated by the Social Welfare Department.
A Drug Education Resource Centre was set up in March 1996 to support the implementation of drug education programmes in schools. A curriculum kit on drug education for primary schools was produced and distributed to schools at the end of the year.
To strengthen parents' awareness of the drug problem and to encourage them to steer their children away from drugs, the Education Department organised a roving exhibition and two seminars for Parent-Teacher Association executives during the year. Model programmes assisting schools to run parent education workshops and seminars on drugs were also developed.
To better equip prospective teachers, in-service teachers and social workers to cope with the issue of drug abuse, drug education workshops and courses were organised for them. A territory-wide seminar was also held for social workers.
A two-day exhibition disseminating anti-drug messages was held in June in support of the annual International Day Against Drug Abuse and Illicit Trafficking. Nine radio shows were held during the year, reaching out to about 800 000 young people. The anti-drug message 'Say NO to Drugs' was applied as a post mark on all mail for two weeks from late June to early July. The message was also publicised through the Mass Transit Railway stored-value student tickets.
The
ACAN Community Against Drugs Scheme continued to provide encouragement and grants of up to $6,000 to interest groups to plan and implement anti-drug education and publicity projects. It financed 21 projects. The ACAN Youth
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Volunteer Group took part in district campaigns and organised several community involvement projects, including a charity walk for the Community Chest in November. A new Anti-drug Abuse Line (Tel. 2366 8822) was launched in June 1996. Apart from providing information on the harmful effects of drugs, the new system also provides information on prevention of drug abuse, as well as treatment and rehabilitation services. Members of the public may also obtain information from the 24-hour automated telephone enquiry service through facsimile. A total of 58 612 calls were received during the year.
Research
Drug-related research is conducted to give a better portrait of the drug scene. It is co- ordinated by the ACAN Sub-committee on Research, which recommends specific areas for research, advises on research methodology and proposes action in the light of research findings. In 1996, three projects were identified for implementation.
The computerised Central Registry of Drug Abuse provides a useful means of monitoring changes in trends or characteristics of the local drug abuser population. It provides a database which facilitates the formulation and planning of effective and realistic anti-drug policies. Statistical analyses were published twice during the year.
International Action
Hong Kong continued to support international action against drug abuse, drug trafficking and money laundering. Close links were maintained with the United Nations, the World Health Organisation, individual governments and inter- governmental agencies such as the Financial Action Task Force, Interpol and the World Customs Organisation. Joint operations resulted in significant seizures and confiscation of drug-related proceeds locally and overseas. The territory took part in 18 international meetings and seminars concerned with anti-drug policies, law enforcement, treatment and rehabilitation, and preventive education.
Hong Kong continued to support international co-operation in the provision of training for anti-drug personnel. During the year, anti-drug personnel from different countries and international bodies came to the territory on study visits and training courses. Co-operation also continued with foreign jurisdictions to provide mutual assistance in the fight against international drug trafficking and money laundering. In January 1996, the Hong Kong Government initialled a bilateral agreement with Thailand for mutual legal assistance in the investigation of drug trafficking and confiscation of proceeds of such crime. Bilateral agreements with the United States and Malaysia were also extended during the year.
Auxiliary Medical Services
The Auxiliary Medical Services (AMS), established in 1950, is a disciplined medical civil defence corps providing supplementary resources to augment regular medical and health services during natural disasters and emergencies. In recent years, the AMS has promoted public awareness of disaster medicine in Hong Kong.
It has 87 permanent staff and 5 258 volunteers from all walks of life, including senior professionals, physicians, nurses, paramedical personnel, civil servants and laymen in the private sector. The Director of Health is the Commissioner of AMS and is responsible to the Governor for its efficient operation.
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Volunteer members receive comprehensive training in areas covering first-aid, life- saving, squad drill, ambulance aid, practical nursing, casualty evacuation, clinical and hospital care, paramedic, disaster medicine, leadership, supervision and management. AMS personnel visited overseas medical authorities and participated in international conferences, training courses and rescue exercises organised by other countries to enhance the service's professionalism.
AMS volunteer members are deployed to accident scenes to provide immediate treatment to the injured, convey casualties to hospitals and render nursing care to patients at both acute and convalescent hospitals. The AMS Emergency Response Task Force is available at short notice to provide paramedical assistance at the scene. Apart from providing emergency services, the AMS undertook the duty of non- emergency ambulance transfer service starting in April 1996. It also committed a total of 99 640 man-hours in 1996 to provide first aid coverage at country parks, cycle tracks, school activities and major public functions. Another 343 900 hours were involved in manning 21 methadone clinics and providing round-the-clock clinical services in five Vietnamese Migrant camps.
The AMS further provided first-aid, nursing and casualty evacuation training to front-line civil servants. Regular seminars and demonstrations are organised to promote the public's awareness of home safety. Members of the public were able to obtain information and materials concerning home safety and first-aid through the First Aid Education Workshop in the AMS Headquarters or a 24-hour enquiry hotline (2762 2033).
Environmental Health
Working under the policy guidance of the two municipal councils, the Urban Services Department (USD) and the Regional Services Department (RSD) are responsible for environmental health and hygiene in the territory. This includes cleaning streets and gullies; collection of night soil, refuse and junk; management of refuse collection points, public toilets and bathhouses; pest control; and services for the dead.
Discharging these responsibilities involves the deployment of 7 274 people and a fleet of 598 specialised vehicles such as refuse collection vehicles, street-washers, mechanical sweepers, night soil collectors, desludgers and gully-emptiers. The departments also mount regular joint operations with the Marine Department to clear marine and littoral refuse.
Streets and lanes are swept from four times a day for busy thoroughfares to once every two days for village lanes. Where conditions warrant, streets and lanes are also hosed down once or twice every fortnight. Refuse collection points and hawkers areas are washed more frequently. The USD has introduced contracting-out of street- cleaning services in Ma Tau Kok, Shek Tong Tsui, Tai Kok Tsui, Wan Chai West, Wong Chuk Hang and Kwun Tong East. The RSD contracts out its street-cleaning services in Kwai Tsing, Sai Kung, Sha Tin, Tai Po, Tsuen Wan, Tuen Mun and Yuen Long districts.
The USD collects 3 100 tonnes of refuse and junk each day, 1 200 tonnes in Hong Kong and 1 900 tonnes in Kowloon. There are some 200 refuse collection points in the urban area, most of them fitted with equipment to contain smells, with carbon filtration being replaced by the more effective water-scrubber system as the deodorising method.
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The RSD manages 914 refuse collection points and 1 419 bin sites and collects about 2 444 tonnes of waste daily, including 94 tonnes removed by a contractual barging service from the outlying islands for disposal on the mainland. To further improve waste collection services, refuse compactors are used in 18 selected refuse collection points, bringing about noticeable improvement to the environment.
To encourage dog-owners to properly dispose of dog droppings, the Urban Council has provided 260 dog excreta collection bins in the urban area. There are plans to refurbish and improve public toilets in phases. During the year, 36 public toilets were renovated in the urban area. Cleansing of 159 public toilets and 29 bathhouses has now been contracted-out. The councils provide a free desludging service to public aqua privies and septic tanks. The service is also provided on a charge basis for private facilities upon request.
The RSD has launched an improvement programme for over 600 public toilets at a total cost of HK$261 million. The project is expected to be completed by 1997-98. The department will also implement a phase II improvement scheme to upgrade the standard of another 55 flushed toilets in township area in the next few years. On waste collection, seven refuse collection points have been refurbished to modern standards at a total cost of HK$22 million. Further improvement works costing HK$36 million on village-type refuse collection points have just been launched.
Pending the commissioning of a centralised incineration facilities, the departments continue to provide separate clinical waste collection service for government clinics and hospitals. About 37.2 tonnes of waste are collected each week from 142 stops. The Keep Hong Kong Clean Campaign, organised by the Joint Urban Council/Regional Council Keep Hong Kong Clean Steering Committee, continued its effort to educate the public to keep the environment clean through the implementation of a series of educational and community involvement programmes. District-based clean-up activities were also organised
were also organised to encourage public participation. District bodies were encouraged to apply for subsidy under the Keep Hong Kong Clean Activities Funding Scheme to organise Keep Hong Kong Clean projects.
Law enforcement action was stepped up and 35 234 litterbugs were prosecuted during the year. They were fined a total of $12.97 million.
Pest Control
The USD and RSD carry out integrated pest control programmes to prevent vector- borne diseases. Measures include environmental improvement, eradication of breeding places, health education and law enforcement. Special surveillance is maintained to prevent outbreaks of malaria in Vietnamese detention centres. Technical support is provided by the Pest Control Advisory Section of the Department of Health.
Environmental Health Education
The Department of Health's Health Education Unit promotes environmental health and food hygiene through territory-wide education programmes. Working with the two municipal councils, the unit conducted several health education activities during the year, including the 1996 Food Safety Exhibition and the 1996 Food Hygiene Campaign for members of the food trade, school teachers and the general public.
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Other publicity campaigns on mosquito and rodent prevention, prevention of nuisance from dripping air-conditioners and practising good personal hygiene habits were also staged during the year. Health messages are disseminated through printed materials, mobile broadcasting, telephone hot-lines and the mass media. Health education materials are also available from the unit's resource centre.
The Urban Council also organises health education programmes to cater for the specific needs of the urban area. The Restaurant Hygiene Competition, and Healthy Menu and Healthy Cooking Competition were staged for the restaurant trade. An Ambassador of Hygiene Scheme and a Teaching Kit on Health Education were aimed at children. A Health Education Fair and Talks on Public Health were also organised for members of the public. A permanent Health Education Exhibition and Resources Centre providing interactive exhibits and information on various health-related disciplines is planned for commissioning in early 1997.
Food Hygiene
The Health Department's Hygiene Division monitors the safety of imported and locally-produced foods. The aim is to ensure that consumers are able to buy good, wholesome food which is unadulterated, uncontaminated and properly labelled. Food samples are taken regularly for chemical analyses, bacteriological examinations and toxicity tests to ascertain their fitness for human consumption.
Food items are sorted for laboratory sampling according to the nature of the food and the risks that they may pose to consumers. The Food and Drugs (Composition and Labelling) Regulations were amended in February 1996 to strengthen consumer protection and ensure that local regulations were consistent with international developments.
Hong Kong maintains close ties with the World Health Organisation, the Food and Agriculture Organisation of the United Nations and other international food authorities. As the bulk of the local food supply comes from China, the Division works closely with the Chinese authorities. Regular meetings are held with officials from the Guangdong and Shenzhen Commodities Inspection Bureaux to promote food safety and better food hygiene.
In 1996, there were more than 300 reported cases of food poisoning, involving 1 800 persons. To combat food poisoning due to contaminated vegetables, a food control office was opened at the Man Kam To Checkpoint in February. Funded jointly by the two municipal councils, the $35 million office houses a vehicle holding area, vegetable inspection bays, a fully-equipped laboratory to conduct confirmatory tests for pesticide-contaminated vegetables and a workplace for detection of radioactive- contaminated food.
Food Premises
The USD and RSD grade licensed food premises according to their hygiene standards. This determines the frequency of inspections. To deter breaches of health regulations, both departments maintain a demerit points system, under which food licenses or permits can be suspended or cancelled. The system is regularly reviewed to ensure its effectiveness. Strict control is exercised over food premises which fail to apply for a licence, or which have not complied with the specified requirements.
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Weekly prosecution of repeated offenders has led to a drastic reduction in the number of unlicensed food premises.
The processing time for licence applications fell markedly after the setting up of an inter-departmental application vetting panel to give initial comments on the suitability of the restaurant applicant's premises and to provide an opportunity for applicants to seek instant advice.
To further encourage applicants to speed up compliance with the licensing pre- requisites, both municipal councils have been issuing 'provisional licences' once major structural work and fitting-out have been completed and fundamental health, structural and fire safety requirements met. This allows an applicant to start operating his business without having to wait for a full licence.
Markets
The municipal councils manage public markets in their respective areas. The Urban Council operated 61 retail markets in the urban area in 1996. In these markets 10 188 stalls offered commodities ranging from fresh food to household items.
The RSD administered 45 markets in the New Territories and outlying islands, providing a total of 5 289 market stalls and 406 cooked food stalls. As its first air- conditioned public market in Shek Wu Hui was very well received, the department plans to provide air-conditioning in all future markets and cooked food centres. Where economically viable and technically feasible, existing facilities will also be air- conditioned. Cleaning services for 19 markets were contracted out at year-end.
Old and outdated markets have gradually been replaced and the UC managed 20 multi-purpose complexes during the year. These complexes house on the lower floors new markets and cooked food centres which are built to meet not only hawker re- siting commitments, but consumer demand. Markets and cooked food centres will, as far as practicable, be air-conditioned to improve the trading environment.
Three new markets were opened during the year: Hung Hom Market in April, Smithfield Market in June and Wong Nai Chung Market in July. A scheme for contracting-out cleansing operations was implemented in 49 markets at the year-end: 24 on Hong Kong Island and 25 in Kowloon.
Hawkers
The two municipal councils maintain control over on-street hawkers. The licensing of street hawkers in the urban area is the responsibility of the Urban Council. At the end of the year, there were 9 200 licensed hawkers in the urban area 800 fewer than in 1995.
The decrease was mainly due to a policy of not issuing or allowing succession of itinerant hawker licences. In addition, the completion of the new Hung Hom Market, Smithfield Market, Wong Nai Chung Market and Hip Wo Street Temporary Market in 1996 made it possible to re-site 326 licensed hawkers formerly trading in the vicinity, which helped to achieve an overall improvement to the environment of the area surrounding the market.
During the year, the hawker control teams in the urban area, comprising 1 943 civilian staff trained in law enforcement, secured 90 030 court convictions for hawking offences by both licensed and unlicensed hawkers.
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To tackle late night or early morning illegal hawking activities at major blackspots, the Regional Task Forces (formed by hawker control teams and directly under Regional command) of the USD also worked on a special overnight shift with satisfactory outcome.
Through constant vigilance and action, the RSD's 82 Hawker Control Teams, reduced the number of illegal hawkers in the New Territories to 1 400 by the end of the year. About 1 480 hawkers held valid licences during the year to operate either fixed pitches or on an itinerant basis. The Regional Council has ceased issuing hawker licences except for purpose-built cooked food stalls.
The RSD's Hawker Control Teams secured 44 000 court convictions for hawking offences during the year by both licensed and unlicensed hawkers. Hawker Handling Centres at Yuen Long and Tai Po police stations proved a success in dealing with hawking arrest and charging procedures and the RSD plans to extend this system.
Abattoirs
There are two abattoirs in the urban area and three slaughterhouses in the New Territories. The Cheung Sha Wan Abattoir is run by the Urban Council and the others are managed by licensed private operators. In the long term, a new slaughterhouse will be built in the New Territories near Sheung Shui, to replace the existing urban abattoirs as well as the Yuen Long Slaughterhouse.
During the year, these abattoirs and slaughterhouses handled 2 532 046 pigs, 80 042 cattle and 7080 goats, which accounted for virtually all of the local fresh meat supply. All slaughtered animals were inspected by qualified health inspectors of the municipal services departments.
The USD and RSD also maintain vigilance against illegal slaughtering activities. In 1996, health inspectors carried out 79 raids on suspected illegal slaughterhouses. Staff also carried out spot checks on meat stalls and 20 persons were prosecuted for possessing unstamped carcasses for sale.
Cemeteries and Crematoria
In land-short Hong Kong, the government encourages cremation rather than burial of the dead. During the year, about 80 per cent of the territory's dead were cremated. Human remains buried in public cemeteries have to be exhumed after six years and are either cremated or re-interred in an urn cemetery.
The Urban Council operates one public funeral parlour in Kowloon which provides free funeral services for the needy and three service halls are open to the public free of charge. The council manages five public cemeteries and two public crematoria, and monitors 18 private cemeteries. The Commonwealth War Graves Commission manages two war cemeteries.
The RSD manages four public crematoria and six public cemeteries in the New Territories. It also oversees nine private cemeteries and six private crematoria. Columbaria are provided at Kwai Chung, Fu Shan, Cheung Chau, Wo Hop Shek, Lamma and Peng Chau for the disposal of cremated ashes.
12 SOCIAL WELFARE
HONG KONG is not a welfare state but the community cares deeply about its state of welfare. Its residents expect the government to help the disadvantaged maintain an acceptable standard of living. The Social Welfare Department spent $6 billion five years ago; in 1996, it spent $16 billion.
An inter-departmental working group established in March 1995 and chaired by the Director of Social Welfare completed a comprehensive review of the Comprehensive Social Security Assistance (CSSA) Scheme in February 1996. The findings and recommendations of the review were published in March, and a wide-ranging package of improvements to the scheme was brought into effect in April 1996.
The review also recommended that elderly CSSA recipients be allowed the option of retiring permanently to China while continuing to receive their monthly standard rates and annual long-term supplement under the scheme. The proposal is expected to be implemented in 1997, subject to detailed arrangements being worked out.
Following a review of the Emergency Relief Fund, a package of improvements to its payment schedule was implemented in June 1996.
The responsibility for carrying out government policies on social welfare rests with the Director of Social Welfare. It is based on the objectives set out in three White Papers, the most recent on rehabilitation - entitled Equal Opportunities and Full Participation: A Better Tomorrow for All (1995).
The government is advised on social welfare policy by the Social Welfare Advisory Committee, covering the whole area of social welfare, and the Rehabilitation Advisory Committee (the former Rehabilitation Development Co-ordinating Committee), on matters of rehabilitation. Committee members are appointed by the Governor and their meetings are chaired by non-officials. The Social Welfare Department maintains a close
close working partnership with non-governmental organisations, most of which are subvented by the government and affiliated with the Hong Kong Council of Social Service.
Many services were expanded in 1996. They included the addition of 741 day nursery places, 144 occasional child care places, 13 small group homes, 10 home help teams, one urban hostel for single persons, 111 family caseworkers, 11 family aides, one clinical psychologist and five family life education workers. For young people, 22 additional school social workers and two outreaching social work teams were provided and seven combined children and youth centres and three integrated teams were established through the reprovisioning of existing centres. An additional team of specially trained social workers was set up to help occasional young substance-
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abusers. For the elderly, a further 120 places in homes for the aged, 785 care-and- attention home places, 24 social centres and two day-care centres were set up.
For people with a disability, the department established 380 places in sheltered workshops, 123 places in day activity centres, 706 hostel places, 50 care-and-attention home places for severely disabled persons and 252 care-and-attention home places for aged blind persons.
Co-ordinated by the department, the Working Group on Battered Spouses was set up in April 1995. During 1996, it produced and distributed to all concerned professionals a set of multi-disciplinary procedural guidelines on the handling of cases involving battered spouses and enhanced publicity on services available to victims of spouse battering.
During the year, the Working Group on Child Abuse co-ordinated multi- disciplinary efforts in implementing legislative measures in protecting child abuse victims giving evidence in court, revising procedural guidelines on handling child abuse cases, launching publicity and public education campaigns to prevent child abuse, setting up 13 District Committees on Child Abuse, and strengthening the joint training of professionals in handling child abuse cases.
The Working Group on Services for Youth at Risk completed its deliberations on teenage suicide, illicit use of drugs among young people, teenage sexuality, runaway youth and juvenile gangs. During the year, several recommendations made by the Working Group to address these issues were implemented, including the production of a videotape on helping parents to handle their children's drug problems. The major recommendations which are still being pursued by the Working Group include developing a screening tool to identify youth at risk, modernisation of children and youth centres, producing a sex education training kit for parents, conducting an in- depth research on juvenile gangs and runaway youth, and enhancing district collaboration efforts to tackle the issues concerned.
Social Security
Social security aims to help vulnerable groups in the community who require financial or material assistance. The Comprehensive Social Security Assistance (CSSA) Scheme and the Social Security Allowance (SSA) Scheme are the key elements in the non-contributory social security system administered by the Social Welfare Department. They are supplemented by three other schemes: the Criminal and Law Enforcement Injuries Compensation Scheme, the Traffic Accident Victims Assistance Scheme and Emergency Relief.
The CSSA Scheme is means-tested and is designed to bring the income of needy individuals and families up to a level so that they can meet their basic and special needs. Persons who have resided in Hong Kong for not less than one year may be eligible if their income and other resources are below the prescribed levels.
The scheme comprises a range of monthly standard rates to meet the basic and special needs of different categories of recipients. Rates range from $1,615 to $4,185 for a single person and from $1,440 to $3,865 for a family member. Special grants are available to meet the special needs of individual recipients and families, such as rent, education expenses, medically recommended diets, spectacles and dentures. A monthly supplement of $230 is paid to single parents to take account of the special difficulties which single parents face in bringing up their children. An annual long-
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term supplement, ranging from $1,435 to $4,305, depending on the size of the household, is paid to those who have received assistance continuously for 12 months. to meet the cost of replacing household wares and durable goods. To encourage self- help, an individual's monthly earnings can be disregarded up to a maximum of $1,615 in the calculation of assistance payable. The first month's income of certain categories of recipients (the elderly, disabled and family carers) who manage to obtain full-time jobs can also be disregarded.
Improvements have been implemented since April 1996 after a comprehensive review of the scheme. These include real increases in the standard rates for specific groups of customers, improvements to the provision of special grants for elderly persons and school children, revision of the levels of maximum rent allowance, revision of asset limits, and revision of the level of disregarded earnings. In addition, standard rates and other related payments were also increased by 7 per cent in April to take account of inflation.
At the end of the year, there were 159 100 CSSA cases, compared with 127 800 in 1995. The elderly, the sick and people with a disability made up the majority. The total expenditure during the year amounted to $6.45 billion, representing an increase of 52.4 per cent over the previous year.
The SSA Scheme provides monthly disability and age allowances for severely disabled persons and elderly persons respectively who do not receive CSSA.
A person who is severely disabled within the meaning of the scheme and has resided in Hong Kong for at least one year immediately before application is eligible for a disability allowance, which is non-means-tested. The normal rate is $1,125. A higher rate of $2,250 is payable to severely disabled persons who require constant attendance from others in their daily life but are not receiving such care in a government or subvented institution.
The age allowance is non-means-tested for those aged 70 and above, and they are entitled to $635 a month. For those aged 65 to 69, the monthly allowance is $560, subject to a declaration that their income and assets do not exceed the prescribed levels. To be eligible for an age allowance, a person must have resided in Hong Kong for at least five years since the age of 60. The disability and age allowances were raised by 7 per cent in April to take account of inflation.
At the end of the year, 503 800 people were receiving social security allowances compared with 492 400 at the end of 1995. Total expenditure during the year was $3.9 billion, representing an increase of 10.8 per cent over the previous year.
The Criminal and Law Enforcement Injuries Compensation Scheme, which is non- means-tested, provides cash assistance to victims, or their dependants in case of death, who are injured or killed in crimes of violence or by law enforcement officers using weapons in the execution of their duties.
During the year, 562 applications were approved, with payments amounting to $11.1 million, which was the same as in 1995.
The non-means-tested Traffic Accident Victims Assistance Scheme provides cash payments to victims of traffic accidents, or their dependants in case of death, regardless of fault. Payments cover personal injury and death, but not damage to property.
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During the year, 5 760 applications were approved, with payments amounting to $125.5 million, compared with $110.4 million in 1995.
Emergency relief, in the form of hot meals, dry rations and other essential relief articles, is provided to victims of natural or other disasters. Cash grants from the Emergency Relief Fund are paid to these victims or their dependants to relieve hardship caused by disasters. Following a review of the Emergency Relief Fund, a package of improvements to its payment schedule was implemented in June. These include real increases in payment rates of some of its grants and a new grant to victims who suffer damage to their home appliances, furniture and other personal belongings due to natural disasters. Emergency relief was given to 1 364 victims on 56 occasions during the year.
The rates of grants payable under the Criminal and Law Enforcement Injuries Compensation Scheme, the Traffic Accident Victims Assistance Scheme and the Emergency Relief Fund were increased in April to cover the rise in living costs.
Social Security Appeal Board
The Social Security Appeal Board is an independent body made up of non-official members appointed by the Governor. It heard 110 appeals in the year. Of these, 35 related to CSSA, 74 to SSA and one to traffic accident victims assistance.
Services for Offenders
The Social Welfare Department implements court orders to rehabilitate offenders through social work approaches, with the aim of reintegrating the offenders into the community. Probation service is available to offenders aged seven and above. Probation officers make recommendations to courts as to the offenders' suitability for probation supervision and assessment on prisoners under consideration for early release. They also supervise offenders' compliance to court orders.
The Community Service Orders Scheme is a community-based initiative with punitive and rehabilitative objectives. A Community Service Order requires an offender over the age of 14 and convicted of an offence punishable by imprisonment to perform unpaid work of benefit to the community and to receive guidance from a probation officer..
The Community Support Service Scheme runs community service projects, job training and counselling groups for young offenders, in order to enhance their interest in school or work and to develop their social skills.
A new probation home for girls began operation in March 1996, taking the total number of residential homes to eight. The homes, with a total capacity of 602 places, provide educational, pre-vocational and character training to juvenile offenders and youth at risk.
The Young Offender Assessment Panel, run jointly by the Social Welfare Department and the Correctional Services Department, provides magistrates with a co-ordinated view on the most appropriate treatment for convicted young offenders aged 14 to 25.
The Post-Release Supervision of Prisoners Scheme, jointly operated by Correctional Services Department and Social Welfare Department, began operation
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in December 1996. The scheme assists discharged prisoners in their rehabilitation and reintegration into society.
One subvented organisation also provides hostel, employment, casework and volunteer services to help ex-offenders reintegrate into the community.
Family and Child Welfare
The Social Welfare Department and non-governmental organisations provide a variety of family and child welfare services. The overall objective is to preserve and strengthen the family as a unit through assisting individuals and families to identify and prevent or solve their problems.
About 3 864 programmes such as talks, small group activities and mass media programmes were conducted by 79 family life education workers of the department and non-governmental organisations.
The territory has 65 family services centres. Services provided include counselling, referrals for child care, elderly and rehabilitation services, job placement, financial and housing assistance. With an establishment of 698 family caseworkers at the end of 1996, the centres handled a total of 68 600 cases during the year.
Family aide service is provided to train clients on home management and child care and help families attain self-reliance. A family care demonstration and resource centre provides training in practical home management and caring skills, as well as resource materials for clients and social workers. Nineteen family activity and resource centres were set up in government-run community centres to provide a drop- in service, mutual support and early identification and referral of cases in need of intensive casework service.
Clinical psychological service, with a staff of 40 clinical psychologists, provides in- depth assessment and treatment to people suffering from psychological and behavioural problems. They also provide support to caseworkers and residential homes.
Three refuge homes provide 120 short-term residential places for women and their children who are victims of domestic violence and for girls at risk; also 117 home help teams provide meals, personal care and household services to those in need.
The department continues to tackle the problem of street-sleeping through its outreaching teams and family services centres, plus temporary shelters, urban hostels, and day relief centres operated by non-governmental organisations. A multi- disciplinary outreaching team, aiming at elderly street sleepers, was set up in March 1996 on an experimental basis for two years.
The department operates a telephone hotline service which provides information on welfare services to callers with pre-recorded messages or through facsimile transmission on a 24-hour basis. Social workers are on duty to provide immediate counselling and advice to customers in need, especially to those in crisis situations. A wide range of child welfare services is provided. An adoption service arranges permanent homes for children in need. Residential child care services are provided for children and young people who need care and protection because of family crises or their behavioural or emotional problems. The development of the service is guided by the principle that a family setting is the best environment for the healthy development of a child and should be the preferred choice over an institutional setting. At the end
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of 1996, there were 560 places in foster care service, 816 places in small group homes and 1 493 places in children's homes, boys' and girls' homes and hostels.
Child care centres provide day-care facilities for children under the age of six. All child care centres were registered under the Child Care Centres Ordinance and Regulations. The ordinance will be amended to regulate childminders and mutual help child care groups in order to strengthen protection of young children. Occasional child care service was expanded to take care of children for short periods of time in order to free their parents or carers to attend to urgent matters. The Fee Assistance Scheme assists low-income families with a financial need to pay child care centre fees.
Medical Social Service
The department collaborates with the Hospital Authority in the provision of medical social services to help patients deal with their personal and family problems arising from illness or disability.
Care of the Elderly
Care in the community, and by the community, is the guiding principle for the planning and development of services for elderly people. During the year, the government continued to implement the recommendations of the Working Group on Care for the Elderly made in 1994.
Residential care is provided for old people who, for personal, social or health reasons, have to be looked after in a residential setting. At the end of 1996, there were 963 hostel places, 6 531 home for the aged places and 8 398 care-and-attention places. In addition, community support services were provided to enable the elderly to live in the community for as long as possible. At the end of the year, there were 184 social centres, 24 multi-service centres, 26 day care centres, 17 respite care places, two volunteer worker programmes, eight older volunteer programmes, two outreaching teams, one holiday centre, one pool bus service and a structured networking system for the elderly in need. About 450 000 senior citizen cards had been issued. Financial and housing assistance continue to be provided for those in need.
The Residential Care Homes (Elderly Persons) Ordinance came into full operation on June 1, 1996. It provides for the control of these homes through licences or certificates of exemption administered and enforced by the Licensing Office of Residential Care Homes for the Elderly.
Services for Young People
The overall objective of services for young people is to help those aged between six and 24 to develop themselves into mature, responsible and contributing members of society. At the district level, 16 youth offices of the department co-ordinate and strengthen existing youth groups and community organisations, promote new groups and help them develop programmes to meet community needs.
By year's end, the non-governmental organisations ran 215 children and youth centres. These centres provide a variety of programmes and activities for the personal and social development of young people.
Social workers are posted to secondary schools to identify and help students whose academic, social and emotional development is at risk. Twenty-two additional school social workers were provided in 1996. At the end of the year, 272 school social
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workers served a student population of 449 370 at an overall manning ratio of 1:1 650. At the same time, at more than one quarter (i.e. 107) of secondary schools with a more serious student problem, the manning ratio was enhanced to 1:1 000.
The outreaching social work service provides counselling and guidance to young people who are vulnerable to undesirable influences. In December 1996, 32 teams served in areas with a high youth population and a high juvenile crime rate.
Integrated teams based on a new service model began operating in October 1994. The teams provide children and youth centre service, outreaching social work service, school social work service and where possible family life education under one management structure. Thirteen teams were set up at the end of 1996.
Uniformed organisations offer young people opportunities to join organised activities with progressive training programmes for the development of character and leadership and to help them become responsible members of the community. This year, 96 900 young people benefited from this service, provided by eight non- governmental organisations. The Duke of Edinburgh's Award Scheme has attracted a membership of 42 000 through its 18 operating authorities.
The Opportunities for Youth Scheme offers funding support to youth groups to plan and implement community service projects. In 1995-96, 2 057 young people took part in 131 projects which benefited 186 171 service customers.
Rehabilitation of People with a Disability
The objective of Hong Kong's rehabilitation services is to integrate people with a disability into the community. The territory has about 363 000 individuals with a disability. Services provided by government departments and non-governmental organisations help such people to fully develop their physical, mental and social capabilities. These services are co-ordinated by the Commissioner for Rehabilitation, who also conducts regular reviews of the Rehabilitation Programme Plan which projects the requirements for and identifies shortfalls and overprovision in rehabilitation services in the following five years. A White Paper on Rehabilitation was issued in June 1995, setting out the government's policy decisions on the further development of rehabilitation services for the next decade and beyond.
The Disability Discrimination Ordinance was enacted in August 1995. It gives people with a disability the means to seek redress against discrimination on the grounds of their disability which may arise in areas of employment; education; transport; access to buildings and other services; and participation in partnerships, professional organisations, clubs and sports. An aggrieved person may lodge a complaint with the Equal Opportunities Commission or bring civil proceedings in the District Court. Equally important is public education, which plays a vital role in changing people's perception of and attitude towards people with a disability. During the year, the government outlaid $8 million on strengthening public education on integration.
Several government departments provide rehabilitation services to people with a disability. The Department of Health is providing immunisation programmes against various communicable diseases while promoting health education to prevent disabilities. It also provides screening services for the early detection and identification of disabilities in babies. The Hospital Authority is responsible for providing medical rehabilitation services for clients with chronic illnesses and
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disabilities, through in-patient, day hospital, out-patient and community settings. The Social Welfare Department plans and develops a wide range of social rehabilitation services, either through direct service provision or subvention to non-governmental organisations. The Education Department plans and develops education and related supportive services for school-aged children with a disability. The Labour Department provides an employment service for people with hearing impairment, visual impairment, physical handicap, chronic illness or mental handicap and ex- mentally ill persons. The Transport Department subvents a Rehabus service for people who have difficulties in using public transport. The Vocational Training Council provides and co-ordinates vocational training for people with a disability.
The Queen Elizabeth Foundation for the Mentally Handicapped, set up in 1988, aims to further the welfare, education and training of people with a mental handicap and to promote their employment prospects. The management and use of the foundation's funds are determined by a council appointed by the Governor. During the year, the foundation allocated about $13 million in the form of grants or sponsorship to 69 non-governmental organisations and three government departments, enabling them to undertake projects for the benefit of such people. The fund stood at $142.5 million on March 31, 1996.
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At the end of the year, the department and non-governmental organisations provided a total of 1 030 integrated programme places, 1 101 special child care places (including 78 residential places), 1 375 early education and training centre places for pre-school disabled children and 72 small group home places for school-aged disabled children. In addition, an enhanced training programme with inputs from clinical psychologists was provided to autistic children in special child care centres. For adults with a disability, there were 2 898 day activity centre places providing day care, daily living skills and work training for mentally handicapped persons. Also there were 5 675 sheltered workshop places providing employment for those unable to compete in the open job market; 950 places in various supported employment schemes providing job opportunities for those who, given support, can manage in open work settings. With regard to residential services, there were 3 547 hostel places, 17 supported housing places and 154 supported hostel places for those who could neither live independently nor be adequately cared for by their families, or who lived in areas too remote from their places of training or employment. For aged blind people unable to look after themselves adequately, or who were in need of care and attention, 595 places were provided in homes and care-and-attention homes. In addition, 570 long-stay care home places, 977 halfway house places and 180 activity centre places were provided for recovered mental patients.
Twenty-two social and recreational centres and six parents/relatives resource centres were provided for different categories of people with a disability.
To improve service quality, professional backup from clinical psychologists, occupational therapists and physiotherapists is provided in rehabilitation day centres and hostels. Other support services include the respite service (which provides short- term relief to families with mentally handicapped persons); five home-based training teams (which help to train mentally handicapped persons while they are awaiting placement); and 40 places of occasional child-care service for children with a disability.
A visit by the VW Car Club of Hong Kong provides variety and an entertaining break for residents of the St Joseph's Home for the Aged, run by the Petites Soeurs des Pauvres, at Choi Hung.
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Young people experience some of the thrills and achievements of old-style sailing during a trip on board the 27.5-metre junk, Huan. More than 6 000 underprivileged or handicapped children benefit from programmes run by the Adventure Ship Project, which has operated in Hong Kong for 19 years. BELOW: Young fans show their delight at receiving autographed pictures from illusionist David Copperfield, who held a special session for handicapped children before his Hong Kong performances.
Photo courtesy of the Hongkong Standard
adidas
Fitness and charity work together during a session for the senior citizens at a Yan Oi Tong gathering near Tuen Mun, in the New Territories. BELOW: Veteran Red Cross helpers show they have lost none of their skills during a demonstration session at Edinburgh Place, Central.
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Staff Training and Development
Fifteen qualifying social work training courses at degree and sub-degree levels were provided by five local universities and one post-secondary college. Together they produced 872 graduates in 1996 to meet service needs.
The department's Lady Trench Training Centre provides in-service training programmes for various grades of social welfare personnel. During the year, 15 728 participants attended 448 seminars, workshops and courses.
Having built up a strong and all-embracing social service network and a large professional body of more than 5 500 social workers over the past few decades, in 1996 the government introduced into the Legislative Council a Bill to provide for statutory registration of social workers. This is to ensure a high professional standard of practice in the best interest of the public. When the legislation is enacted, a statutory Registration Board will be set up to register qualified social workers, set qualification standards and codes of practice, and exercise discipline over the professional conduct of social workers.
The Advisory Committee on Social Work Training and Manpower Planning, which advises the government through the Social Welfare Advisory Committee on all matters relating to social work training and manpower planning, has initiated in the year a research project to obtain employers' feedback on the competence level of social work graduates.
Research and Statistics
The department conducts surveys and research studies, develops and maintains data systems and undertakes statistical compilation and estimation for the monitoring, planning, development and review of social welfare services. The data systems provide management information over a wide range of areas including planned welfare projects, social welfare manpower and customers awaiting and receiving various social welfare services.
Subvention and Evaluation
Financial assistance is given to 174 non-governmental organisations for the provision of social welfare services in accordance with government policies. Financial assistance for capital and special expenditure is also provided through the Lotteries Fund. The Subventions and Lotteries Fund Advisory Committee advises on the allocation of Subventions and Lotteries Fund grants to agencies providing social welfare and rehabilitation services.
The department's Evaluation Unit is responsible for monitoring and assessing services provided by subvented non-governmental organisations. Departmental staff make regular visits to the agencies which, in turn, submit service statistics quarterly.
In March 1995, the government commissioned consultants to conduct an 18-month review with a view to improving the administration of the social welfare subvention system so that subvented non-governmental organisations will be given greater flexibility to provide their services cost-effectively and with better accountability through individual administrators of these non-governmental organisations and the Director of Social Welfare.
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The review results were to be delivered in three stages. The first stage provided a review of the current system and ended in July 1995. At the second phase, the consultant developed a proposal on performance measures and funding arrangements. This was completed in August 1996. The third stage is under way and will look at the detailed implementation plans.
Community Building
Several government departments and non-governmental organisations (NGOs) contribute towards the community-building programme, which serves to foster among the people of Hong Kong a sense of belonging, mutual care and civic responsibility.
Community-building efforts involve providing purpose-built facilities for group and community activities, the formation of citizen's organisations, and encouraging community participation in the administration of public affairs, solving community problems and improving the quality of community life in general. While the Home Affairs Branch has policy responsibility for the programme, the Home Affairs Department and Social Welfare Department are principally responsible for its implementation. The Home Affairs Department, through its network of district offices, is primarily concerned with promoting mutual care and community spirit through local organisations such as area committees, mutual aid committees, rural committees, kaifong associations, women's organisations, and so on.
The Social Welfare Department and the NGOs, through the provision of group and community work activities, promote social relationships and cohesion within the community and encourage individuals to solve community problems.
Commission on Youth
The Commission on Youth was established in February 1990 with members appointed by the Governor. Its main objectives are to advise on matters pertaining to youth, initiate research, promote co-operation and co-ordination in the provision of youth services and serve as a liaison point with other international youth organisations for youth exchange programmes.
During the year, the commission focused on the implementation of the proposals raised at the Review of the Implementation of the Charter for Youth conducted in 1995. A major task was to develop a set of parameters to provide objective measurements of progress in youth development in Hong Kong. A working group was formed under the commission to do this.
The commission initiated studies on the supportive system for working youths, and on the knowledge of and attitude towards AIDS-related issues among marginal youths. The studies will be completed in early 1997, when recommendations will be presented to the government departments and youth organisations. To examine the fundamental issues involved in influencing young people's attitude and social values and to explore the means to convey positive and proper messages to them, the commission also conducted a study to examine the moral values of youths.
In June and July, two groups comprising 16 young people were sent for a three- week trip to Britain and Germany respectively under the International Youth Exchange Programme. The programme enables young people to share their
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experience and ideas with their counterparts abroad. The commission has also prepared to play host to young visitors from the two countries in 1997.
Committee on the Promotion of Civic Education
The Committee on the Promotion of Civic Education, set up in May 1986, marked its 10th year promoting civic awareness and civic responsibility in the community. In 1996-97, it carried on with its expanded educational programme on equal opportunities and human rights with the $20 million extra grant allocated to promote these themes over the period 1995-96 to 1997-98.
Major activities in 1996 included: an annual civic education exhibition featuring the themes of the rights of the child, equal opportunities, elimination of discrimination, and the Basic Law; a series of human rights education publications including a teaching kit for children and a handbook for parents, story books, cassette tapes and music compact discs; seminars on human rights; cartoon booklets on civic education and children's rights for pre-school children; video and booklets on the Basic Law for children and youngsters; and a computer software design competition on civic education. The committee allocated some $2 million under the Community Participation Scheme to fund civic education activities run by non-government organisations.
A media campaign was launched to promote human rights, with particular emphasis on the rights of the children and equal opportunities.
To commemorate its 10th anniversary, the committee co-produced with Radio Television Hong Kong a TV programme on civic education. A conference will be organised in 1997.
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13 HOUSING
HOUSING in Hong Kong has undergone major redevelopment over the past two decades. More than 1.2 million public and private flats have been built. Today, public rental housing accommodates about 2.5 million people compared with 1.7 million in 1975. Some 38 per cent live in increasingly modern rental flats. Since 1978, the government has built more than 220 000 subsidised flats for sale under various home ownership schemes. As a result, 52 per cent of the people live in subsidised housing. The overall home ownership rate has risen to 52 per cent, compared with 38 per cent 10 years ago.
In 1996, the public sector produced about 31 200 flats, of which about 12 800 were for sale, and the private sector produced 19 800 flats.
Housing Policy
The government's policy is to help all households to have access to adequate and affordable housing, and to encourage home ownership in the community. The overall strategy it adopts in seeking to achieve these goals is by:
providing a sufficient supply of land, together with supporting infrastructure, for public and private housing;
⚫ creating the conditions to enable the private sector to make the fullest possible
contribution towards meeting the demand for housing;
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implementing subsidised housing schemes to enable those in the relevant income groups to buy their own homes;
providing quality public housing at reasonable rents for those who cannot afford any other type of housing; and
monitoring the private housing market and, where necessary, introducing measures to curb speculation.
Production Targets
The government aims to produce 511 000 new flats over six years from April 1995 to April 2001, made up of:
141 000 public rental flats.
175 000 subsidised flats for sale (under the four home-ownership schemes)
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195 000 private housing flats.
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Policy Review
The government embarked on a review of its Long Term Housing Strategy in November 1995. The objective of the review is to consider what changes in current policies and programmes are necessary to achieve its housing goals over the planning period to March 2006. The review's conclusions and recommendations will be released for public consultation in January 1997.
Organisational Framework
Housing Branch
The Secretary for Housing has overall responsibility for public and private housing matters in Hong Kong. Set up in November 1994, the Housing Branch is responsible for setting government policy on the provision of housing in the public and private sectors. It oversees the public housing programmes, facilitates and monitors the operation of the private housing market, and ensures the provision of sufficient land and infrastructure to meet housing targets.
Housing Authority
The Housing Authority is an independent, statutory body responsible for carrying out Hong Kong's public housing programmes. Its prime objective is to provide affordable housing to the needy, which is in line with the government's Long Term Housing Strategy.
Established in 1973, the authority plans and builds public sector housing, either for rent or sale. It manages public housing estates, Home Ownership Scheme (HOS) courts, interim housing, cottage areas, transit centres, flatted factories, commercial facilities and other community and ancillary facilities throughout the territory. Increasingly, it has contracted out the management of some of these facilities to private agencies. It also administers the Private Sector Participation Scheme (PSPS) and the Home Purchase Loan Scheme, and acts as the government's agent to clear land and control squatting. The Housing Department is its executive arm.
The government provides land on concessionary terms and finances, where necessary, to enable the authority to meet the government's public housing targets. At the end of March, the government's capital investment and contribution stood at about $30.8 billion. This comprised non-interest-bearing permanent capital of $13.5 billion, loan capital of $11.8 billion, contributions to domestic housing of $4.8 billion and non-domestic equity of $642.1 million. The historical market value of land provided on concessionary terms was $168.2 billion.
Housing Society
The Housing Society is an independent, non-profit-making organisation, established in 1948. It provides housing for specific low-income groups in Hong Kong. At the end of 1995, it has 32 307 rental housing units and 8 791 flats for sale under the Urban Improvement Scheme and Flats for Sale Schemes. The Housing Society also administers a sandwich class housing scheme on behalf of the government. Its annual production for the past five years averaged about 1 663 units.
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Private Sector Housing
The total private housing stock amounts to about 911 100 units.
Property Prices
In June 1994, after a period of rapid price increases between 1989 and 1993, the government introduced a package of measures designed to dampen speculation, to increase housing supply and land supply, and to strengthen consumer protection and the administration of housing policy.
The anti-speculative measures and subsequent technical adjustments have achieved the desired effects. In October 1995, prices of selected residential developments in the secondary market were 26 per cent below the April 1994 peak level. Owing to lower interest rates and aggressive bank lending policies, buying interest subsequently revived. In December 1996, prices in money terms were close to the April 1994 peak level. After adjusting for inflation, however, prices were about 16 per cent lower than the peak level.
Housing Supply
To enable the government's housing production target of producing 511 000 new flats in the six-year period from April 1995 to April 2001, sufficient sites for housing development have been identified. In the case of public housing, the development of individual housing sites has already been incorporated into the Housing Authority's Public Housing Development Programme. It is envisaged that the production can be met. For private housing, the government has no direct control over the actual production. However, the production from new development sites already identified so far should be sufficient to meet the production targets of 195 000 flats. To ensure that housing production is not unduly held up by the delay in land formation or the lack of infrastructure support, the government has set aside a sum for the purpose of facilitating the implementation of housing-related infrastructure projects, such as water supply, sewerage, land formation and transport links. In 1996-97, 60 public works projects have been identified for funding at a total estimated cost of $13 billion.
Consumer Protection
Regulation of Estate Agents
In November 1995, after public consultation in 1994, the government introduced proposed legislation (Estate Agents Bill) to regulate the operation of estate agents in Hong Kong. The Bill seeks to establish a statutory Estate Agents Authority responsible for licensing estate agents and regulating their activities, to enshrine the obligations of estate agents in law and to prescribe agency agreement forms. A Bills Committee was set up by the Legislative Council to examine the legislation, which is scheduled for enactment in 1997.
Sales Descriptions on Uncompleted Flats
After public consultation in 1994, the Law Reform Commission reported in April, recommending the introduction of legislation to require developers to provide sales literature with clear and accurate descriptions about uncompleted properties put on
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sale, and to impose penalties for non-compliance. The government has completed consultation with property developers and relevant professional bodies on these recommendations. In general, they supported the spirit of the recommendation, although there were comments on the proposed level of penalty for breaches. The administration will study these comments carefully and aims to introduce appropriate legislation in 1997.
Rent Control
The tenants of most domestic premises are afforded security of tenure under the Landlord and Tenant (Consolidation) Ordinance.
Statutory controls date from 1921 and the following domestic tenancies also have their rent levels controlled:
• Tenancies in pre-war domestic premises; and
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Tenancies in post-war domestic premises completed before June 19, 1981 (but not new lettings created on or after June 10, 1983, nor tenancies of premises with a rateable value of $30,000 or more as at June 10, 1983).
Other domestic tenancies receive security of tenure, provided the tenant is prepared to pay the prevailing market rent.
The legislation originally provided for controlled rents to be increased progressively up to market levels so that rent control could be removed by the end of 1996. However, the Legislative Council passed a resolution in December 1996 to extend rent control for two years, lower the permitted rent levels from 90 per cent of the prevailing market rent to 80 per cent, and lower the maximum rent increase from 30 per cent to 20 per cent. Based on the present legislation, rent control will phase out after December 31, 1998. The provision for security of tenure will, however, continue to apply after the expiry of rent control. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession. Penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. Provisions exist to facilitate an agreed surrender by the tenant of his protected tenancy in exchange for a consideration.
The Rating and Valuation Department administers the Ordinance and publishes explanatory pamphlets to help people understand their position in relation to the legislation. It provides an advisory and mediatory service to handle the many practical problems arising from rent controls. Its Rent Officers also answer enquiries on landlord and tenant matters in district offices.
As part of the overall review of the Landlord and Tenant ordinance, it is intended to raise penalties against harassment and unlawful eviction to ensure sufficient deterrent.
Public Rental Housing
About 700 000 flats are available for public rental housing.
Rent Policy
Rents for domestic units in the public sector are based on tenants' ability to pay. Tenants may choose to live in the minimum space standard of 5.5 square metres per 191
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person at a median rent-to-income ratio not exceeding 15 per cent, or 7 square metres per person at a median rent-to-income ratio not exceeding 18.5 per cent. With rents being charged at $60.40 per square metre for the newest urban estates, $37.70 for the newest New Territories estates, and $34.70 for the newest Island estates, domestic rents represent, on average, 8.6 per cent of the median household income of Housing Authority tenants. Rents are reviewed every two years, taking into account increases in rates, management and maintenance costs, location, facilities, and tenants' ability to pay.
Housing Subsidy Policy
Under a modified housing subsidy policy introduced in April 1993, tenants who have lived in public housing for 10 years or more are required to declare household income at two-yearly intervals. Households with income exceeding two times the Waiting List Income Limit are required to pay 1.5 times rent plus rates. Those with income exceeding three times the Waiting List Income Limits or who choose not to declare income have to pay double rent plus rates. At present, some 46 500 households or 14 per cent of the 330 000 affected households are paying extra rent.
In June 1996, a new policy on safeguarding rational allocation of public housing resources was introduced following deliberations by an ad hoc committee under the authority, and a three-month public consultation. With the introduction of the new policy, tenants paying double rent are required to declare their net household assets at two-yearly intervals. If such households' assets exceed 110 times the 1995 Waiting List Income Limits, they are required to pay market rent. The first batch of affected households will start to pay market rent in April 1997.
Rent Assistance
Public housing tenants facing temporary financial hardship can apply for rent reduction under the Rent Assistance Scheme. In September 1996, the eligibility criteria for rent assistance were relaxed to benefit more low-income households. A public housing household whose income is below 50 per cent of the Waiting List Income Limits; or whose income is between 50 and 60 per cent of the Waiting List Income Limits and whose rent-to income ratio exceeds 15 per cent; or whose rent-to- income ratio exceeds 25 per cent, is eligible for assistance. Up to December 1996, 2 252 families benefited from the Rent Assistance Scheme.
Allocation
In 1996, 15 747 new flats and 22 107 refurbished flats were let to the various categories of eligible applicants. Some 13 200 flats (35 per cent) went to waiting list applicants. Applicants are considered in the order of their registration and in accordance with their choice of district. Accommodation is offered to those who are eligible in respect of their family income and residence in Hong Kong (normally seven years). At the end of the year, there were 149 340 applications on the general waiting list; including 22 216 applications single persons.
Two other large groups of allocation were tenants affected by the comprehensive redevelopment programme (20 per cent), and families affected by development clearances (24 per cent). The remainder of the flats were allocated to junior civil
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servants, victims of fires and natural disasters, occupants of huts and other structures in dangerous locations, and compassionate cases recommended by the Social Welfare Department.
Housing the Elderly
Under the Housing for Senior Citizens Scheme, introduced in 1987, more than 3 604 housing units have been provided for able-bodied elderly persons aged 60 years or over who are self-reliant and independent. A warden service is provided to deal with emergencies. As a priority scheme, elderly couples or single elderly persons applying in groups of two or more are normally allocated public housing in approximately two years. In 1996, 1 340 people were rehoused under this scheme and 658 flats were allocated. Persons requiring a higher level of health care are referred to the Social Welfare Department for transfer to more suitable housing. Since June 1994, priority for public housing has been given to families applying with elderly parents or dependants. So far, 2 174 families have benefited from this scheme. New housing for the elderly continues to be built on small urban sites over the next few years. In the period from 1996-7 to 2000-1, the Housing Authority will provide 52 000 flats suitable for small households, including flats designed for the elderly.
Community Liaison
The Housing Authority has established five Housing Information Centres. In addition to outreaching services such as organising visits, talks and exhibitions on housing for the elderly, these centres provide comprehensive advisory services to residents affected by redevelopment of private buildings or urban renewal projects, and to applicants for public housing and Home Ownership Scheme flats. The authority also plans to set up information centres in districts with a high concentration of elderly residents in old private tenements in a bid to provide better services.
Assisted Home Purchase
Home Ownership Scheme and Private Sector Participation Scheme
The Home Ownership Scheme (HOS) was introduced in 1978 to provide flats for sale to lower and middle-income families and public housing tenants at prices well below market value. About 230 000 flats have so far been sold to eligible families. These include 69 704 flats produced under the Private Sector Participation Scheme (PSPS), which makes use of the resources of the private sector to produce flats for sale at subsidised prices. Private sector applicants are not allowed to own domestic property within two years prior to the submission of their applications and are subject to a household income limit of $26,000 a month. These restrictions, however, do not apply to public housing tenants, residents of temporary housing areas and cottage areas managed by the authority, households displaced by the clearance of squatter areas for development, natural disaster victims and junior civil servants.
To encourage upward mobility, public housing tenants are given higher priority than private sector applicants in selecting HOS flats, receiving about two-thirds of the total number available. About 40 per cent of the families who bought property under the schemes were public housing tenants who surrendered their rental flats in return
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for allocation to those in greater need. Priority is also extended to prospective tenants so that they can bypass public rental housing.
During the year, some 10 987 flats and 2 340 flats were sold under the HOS and the PSPS scheme. The schemes were over-subscribed by 10 times.
In a bid to promote home ownership, the authority conducted a comprehensive review of the HOS in 1995. The review resulted in several recommendations, including a proposal to sell new rental flats to tenants affected by the Comprehensive Redevelopment Programme (CRP). The proposal provides a mortgage subsidy to CRP tenants and possibly certain other public rental housing tenants to purchase these transfer block flats. Also included are a new resale restriction regime and the introduction of a secondary market for the sale of HOS flats to public rental housing
tenants.
Sandwich Class Housing Scheme
The Sandwich Class Housing Scheme was introduced in 1993 to assist families with a monthly income of between $20,001 and $40,000 to buy their own homes. In 1996, the lower and upper limits were revised to $26,001 to $60,000 respectively. It comprises an Interim Loan Scheme and a Main Scheme, both of which are administered by the Housing Society.
The Loan Scheme, with a grant of $2 billion from public funds, will help 4 500 families buy their own homes in the private sector. Successful applicants can borrow up to 25 per cent of the flat price or $550,000, whichever is the less, to buy a property that is not older than 20 years and worth not more than $3.3 million. The loan is repaid, in 120 equal instalments starting from the fourth year after the loan is made. Interest is charged at 2 per cent a year. By the end of 1996, 4 047 loans with a total value of $1.86 billion had been granted.
The Main Scheme involves the construction of flats which will be sold to eligible applicants at discounted prices but subject to a five-year resale restriction. The land is granted to the Housing Society on concessionary terms and this is reflected in the selling prices of the units. In all other aspects the flats are comparable to those built by the private sector.
Eleven sites producing 10 446 flats form the first batch and currently 1 024 flats in Tsing Yi have been completed. Another 2 578 flats in Ma On Shan, Ap Lei Chau and Tseung Kwan O have been pre-sold, and the remaining 6 844 units will be offered for pre-sale in 1997. To meet the balance of the total target of 30 000 units under the scheme by the year 2003, two sites have been granted which will produce approximately 1 612 units. Eleven sites have been identified which will produce some 12 000 units. We will continue to identify suitable sites for this purpose.
Home Purchase Loan Scheme
The Home Purchase Loan Scheme was introduced in 1988 to help lower and middle- income families to buy flats in the private sector. In 1996, 6 170 families benefited from the scheme. Eligible applicants are offered an interest-free loan, repayable over the same period as the bank mortgage on the property, up to a maximum of 20 years. Alternatively, they may opt for a monthly subsidy for 48 months, which need not be repaid.
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As an incentive to attract more public housing tenants to buy property and give up their rental flats for reallocation, the scheme was enhanced in 1995 with a considerable increase in the amount of interest-free loan and non-repayable monthly subsidy granted to eligible applicants. The loan and the monthly subsidy given to public housing tenants were $600,000 and $5,100 respectively, while those for private sector applicants were $400,000 and $3,400 respectively. This offer remains effective for the financial year 1996-97. So far, 16 708 loans and 975 subsidies have been granted. As a result, 10 035 public housing rental units have been recovered.
Construction
The Housing Authority continued its building programme during the year with the completion of 17 118 new rental and 11 375 Home Ownership flats. At the end of the year, 167 791 flats were under construction. Harmony blocks, first introduced in 1992, are now a familiar sight throughout the territory.
Construction was undertaken both for new estates in New Towns such as Tin Shui Wai, Tseung Kwan O and Tung Chung, and for the redevelopment of older estates within existing urban areas. Production targets are set to rise further in future. The authority is stepping up construction work. About 300 000 flats are programmed for completion between 1996/97 and 2000/01.
New Block Designs
In its continued quest for better flat designs and environment for the community, the authority introduced during the year a new range of standard blocks, Concord 1 and 2, for the Home Ownership Scheme. The Concord blocks incorporate and improve on the Harmony block and New Cruciform block designs to offer buyers a more spacious living area and a higher standard of choices of fitting-out and finishes. Concord 1 has 41 storeys with eight units per floor, and Concord 2, 31 storeys with six units per floor. The units will range from 46 square metre two-bedroom to 61 square metre three-bedroom flats. Standard features will include an en-suite shower- room and bathroom in larger flats and fully-fitted kitchens and bathroom.
The first building contract to include a Concord block commenced in Fanling in 1996. Completion is expected in early 1999. Parallel to the development of the Concord designs, the existing Harmony and New Cruciform Blocks were being upgraded to a similar standard, with improved finishes and fittings in kitchens, bathrooms, public areas and lifts.
Redevelopment
Redevelopment projects are in progress at Yau Tong, Kwun Tong (Lei Yue Mun Road), Lam Tin, Sau Mau Ping, Tsz Man, Upper Ngau Tau Kok, Valley Road, Pak Tin, Shek Lei, Kwai Fong, Kwai Chung, Chai Wan and Shek Pai Wan Estate. The old blocks evacuated in the year under the Comprehensive Redevelopment Programme include blocks at Chai Wan, Sau Mau Ping, Upper Wong Tai Sin, Tsz Oi, Tsz Ching, Shek Lei and Shek Yam Estate and the demolition works started in February. The development will improve the environment in these estates for 35 117 people.
Since the launching of the Comprehensive Redevelopment Programme in 1988, 321 housing blocks in older estates have been redeveloped, improving the living
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conditions for some 103 441 families. Over the next five years, another 246 older blocks will be redeveloped.
An Advance Allocation System to offer more choices to the tenants affected by the Comprehensive Redevelopment Programme was piloted in the redevelopment of Chai Wan Estate Phase 2 in January 1996. Under the scheme, reception flats earmarked for the exercise were open for selection by tenants and the priority of flat selection was determined by a ballot. The scheme was well received by tenants.
Estate Management
The Housing Authority has gradually introduced private agents to enhance the quality of management service in public rental housing. A trial scheme to contract out estate management services in three new public rental estates Ming Tak, Hing Tung and Ping Tin - has been carried out in 1996.
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Following a successful trial in four estates in mid-1994, the Customer Service Assistant (CSA) Scheme has been extended to all public rental estates. The CSAS record requests and complaints from tenants and refer matters to appropriate estate officers for action. Tenants will be informed of the time for repairs.
The Estate Management Advisory Committee Scheme (EMAC) is being extended to other estates following its successful trial in eight pilot estates in 1995. It aims to increase tenants' participation in estate management, enhance communication between tenants and the management, and improve service standards. So far, 89 committees have been set up. The scheme will be fully implemented in all public housing estates by the end of 1997.
The Housing Department has launched a security upgrading programme to provide 24-hour security guard service and security installation to all existing rental blocks of Harmony and Trident series and new blocks under construction. It is anticipated that the whole improvement programme will be completed in 1997. The system will allow tenants to speak to and see visitors over their own telephone and television screens. At the same time, estate staff will also be able to monitor the estate through a comprehensive network of closed-circuit television (CCTV) connected to a central control room in each estate. In addition, night patrol guard and CCTV services are provided to housing blocks without entrance gates and blocks without lift service.
A package of measures to enhance the management and living environment of interim housing areas have been implemented. These include more regular cleansing of open areas, surface channels and toilets; speeding up repair services and enhancing communication between the management and the residents.
Welfare Services
Some 1 158 welfare premises in Housing Authority's estates and courts are let for welfare and community services at a concessionary rent of $33 per square metre a month. Non-domestic premises in less-popular locations are let at a fair market rate to community organisations. The authority also undertakes fitting-out works for welfare projects and 133 projects were fitted out in 1996.
The Estate Liaison Officers Scheme, providing outreaching services to elderly public housing tenants, has been expanded. Housing management staff visit the elderly, offer assistance and encourage them to take part in various community
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activities. In September 1996, the Housing Authority approved financing the installation of an emergency alarm system for low-income elderly tenants living alone and who are not receiving Comprehensive Social Security Assistance. By the end of the year, 57 applications had been approved.
Commercial Properties
Retail facilities and car parks are provided as an integral part of public housing estates. Apart from providing convenience to tenants, they generate income which helps sustain the authority's building programme. Five new shopping centres were completed during the year. Total commercial stock at year's end stood at 1.3 million square metres, and 75 000 car parking spaces. Despite continued difficulties in the retail sector, vacancies remained low at around 2.3 per cent during the year. Total income grew by some 10 per cent to $3.9 billion.
The authority's portfolio includes 17 flatted factory estates and 2 500 shops in former resettlement estates. These shops and half of the factory units are let at low rents; other premises are let at market rents, primarily for three-year terms. Lettings are primarily by tender supplemented by negotiation, which provides flexibility and assists in attracting anchor tenants and large space users.
The authority continues to expand the role of the private sector in commercial properties management. The majority of car parking spaces and factory estates are now under agency management. A trial scheme for the privatised management of two shopping centres has produced good results and will be expanded over the next few years.
Maintenance Services
The introduction of additional estate facilities and rise in tenants' expectation have added to the Housing Authority's maintenance commitment. Total maintenance expenditure for the year amounted to $3 billion. The authority is expected to spend $22.7 billion within five years on maintenance and improvement works.
Since the introduction of the CARE (Condition, Appraisal, Repair and Examination) Programme in mid-1993, 111 estates have started their first CARE cycle. It is expected that all the estates except those due for redevelopment will have commenced the CARE cycle by 1997. The Enhanced CARE Programme, a more customer-oriented, planned-maintenance programme, was also implemented in March 1996. This programme focuses on tenants' communication and participation in maintenance, including tenants' survey, fitting out of sample rooms to demonstration quality, and provision of a 'hot-line' to handle more effectively complaints and enquiries.
The first cycle of Special Repair Programme comprising condition survey and repair to about 205 domestic blocks (about 104 605 flats) in older estates was in steady progress. A total of 27 289 flats (52 per cent) have been repaired through overtime work in evenings and in public holidays to meet tenants' requirements. It is expected that the repair works will be completed by early 1997.
The refurbishment period for the authority's vacant flats was shortened. During the year, 14 944 flats were refurbished for reletting and over 73 per cent of them were finished within three months. At the same time, improvement to existing shopping
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centres continues with four projects completed during the year at a cost of $200 million.
To improve the water quality of potable water supply in estates, a master replumbing programme was developed, and 405 rental blocks have been scheduled for replumbing within the coming three years. So far 38 blocks in total were replumbed with non-ferrous materials. In addition, a total of 61 pump houses were renovated and replaced by stainless steel flush water pumps.
With the successful implementation of the pilot scheme in 35 estates in April 1995, the MISIS front-line system, a fully computerised system for minor maintenance works, was extended to 110 estates. The authority is reviewing and re-engineering various processes relating to day-to-day minor maintenance with a view to providing better maintenance services for the tenants.
Electrical rewiring and reinforcement programmes have progressed well. During the year, 71 rental blocks were rewired and/or reinforced at a total cost of $133 million. The programme will be completed in 2003/04.
Conversion of the existing fire services dry riser system to a wet riser system in estates has been completed. A similar improvement programme for the provision of wet riser system to low-rise blocks, factory blocks and staff quarters is scheduled for completion by September 1997.
The security package for installing security gates and CCTV inside lifts in existing rental buildings was provided to 367 blocks. It is anticipated that the entire programme for more than 940 buildings would be completed by June 1997. Progress on modernisation of lifts in older buildings was in full swing. The Cable TV service has been activated in more than 238 existing estates/courts with scheduled completion to all estates by end-1997.
Squatter Control
The squatter population has been reduced to 21 800 in the urban area and to 215 300 in the New Territories as a result of rehousing.
The 1982 squatter structure survey provides a baseline for control of new squatting on government land and private agricultural land. Squatter control is maintained by carrying out daily patrols and regular hut-to-hut checks. During the year, a total of 3 700 illegal structures and extensions were demolished.
The Housing Authority repairs and maintains the facilities in the existing squatter areas. In the event of fire, landslips and natural disasters, Squatter Control staff attend the scene and provide transit accommodation for victims rendered homeless. Eligible households will be offered rehousing accordingly. A total of 1 010 people were given either permanent or interim housing in 1996 under this category.
Squatter Clearance
All squatters on government land in the urban area were offered rehousing by the end of March 1996. During the year, 194 hectares of land were cleared, with 9 200 and 2 800 affected people given permanent or interim housing. Some 1 020 industrial, commercial and agricultural undertakings affected by clearances were awarded ex- gratia allowances.
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A non-development clearance programme was devised on the advice of the Geotechnical Engineering Office of the Civil Engineering Department. Some 3 400 persons living in the squatter huts on slopes vulnerable to landslips were provided with either permanent or temporary housing elsewhere, according to their eligibilities.
The Advance Allocation System was tried out in some clearance operations. The scheme was successful and widely accepted by tenants. Its feasibility is under further study with a view to extending it to all clearance operations.
Temporary Housing
Temporary Housing provides accommodation for people who are rendered homeless by clearance, fires and natural disasters but are not eligible for permanent public housing. Since early 1996, this type of accommodation has been renamed Interim Housing (IH). The aim is to emphasise to the residents the transitional nature of the accommodation.
There are two types of IH: the traditional low-rise timber structures and the multi- storey concrete blocks (converted from the existing blocks in the older estates). At the end of the year, the territory had 21 interim housing areas housing 29 100 people.
An accelerated programme to clear all pre-1984 interim housing areas is in progress. During the year, 13 interim housing areas were cleared.
The Housing Authority plans to retain old housing blocks to provide the bulk of IH in the long term. It is also experimenting with a new design of IH using prefabricated building systems.
Transit Centres
Transit Centres provide free emergency shelters for the homeless and victims of fires and natural disasters, pending assessment of their eligibility for rehousing to permanent or temporary housing. The Housing Department manages six transit centres with a capacity of 930 people.
Cottage Areas
Cottage Areas, an early form of public housing, are being phased out gradually. They comprise single-storey structures built of stone or less-permanent materials on hillsides. During the year, the largest cottage area, Tiu Keng Leng Cottage Area, was cleared for permanent development. At the end of the year, there were five cottage areas in the territory, housing 3 420 people.
Community Activities
During the year, the Housing Authority actively involved the community as partners in promoting the concept of Care and Share among its tenants.
Apart from the extension of the Estate Management Advisory Committee Scheme to all estates, the authority has launched a territory-wide campaign to increase civic- mindedness among primary and secondary students. The campaign featured competitions to create slogans, drawings and cartoon figures, and the nomination of student ambassadors. Other activities organised included mobile exhibitions and a
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fun bus visiting kindergartens and primary schools. A hygiene and health education programme was also tailor-made for interim housing tenants.
To create an opportunity for international exchange on housing issues, the authority organised a Housing Conference with the theme of 'Housing for Millions ---- the Challenge Ahead' in May 1996. More than 500 delegates from Hong Kong, Asia, the Pacific Rim, North America, Europe and South Africa participated. A new exhibition centre at Ho Man Tin South was opened by the Chief Secretary in May 1996. The centre serves as a central resource and exhibition centre for public housing, and it will help both the local community and overseas visitors to understand the authority's work, policies and services.
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| PREVIOUS PAGE: High-rise apartments blaze into light and colour at night in the Kowloon foothills at Wong Tai Sin. Most of the buildings in the picture provide government-built public housing - where about 2.5 million people live and pay minimal rents. Hong Kong's housing sector has built more than 1.2 million private and public flats in the past 20 years.
Luxury town house-style development, Red Hill, on a promontory overlooking Tai Tam Bay on southern Hong Kong island.
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Prospective buyers look through a display flat and (bottom) study a model of Kings Park Villa, a top-end development in the heart of Kowloon.
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Enthusiastic bathers splash in a new swimming pool built by the
Urban Council near a public housing estate at Hammer Hill. Swimming is Hong Kong's most popular summer pastime, with about 7.7 million people using the 31 public pools managed by the Urban and Regional Councils, and 17.3 million going to the 41 gazetted bathing beaches in 1996.
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14 LAND, PUBLIC WORKS
AND ÚTILITIES
EFFICIENT delivery of a wide range of public works is essential to sustaining Hong Kong's economic growth and improving its lifestyle. In the five years since 1992, the government has spent more than $72 billion on public works, other than works in connection with the new Airport Core Programme, to build the infrastructure necessary to cope with Hong Kong's rapid development. This constitutes an increase of 40 per cent in real terms by comparison with the previous five years.
The works group of departments managed more than 1 000 ongoing projects of all kinds in 1996. To help ensure that these projects are completed on time, a computerised public works management system was installed in 1994. The system was upgraded in 1996 and 155 terminals were installed in various government departments. Dedicated project management teams have also been set up in works departments to facilitate the execution and co-ordination of projects. Suitable training materials have been developed and training programmes implemented to improve professional skills in project management and co-ordination.
A regular Land Acquisition Co-ordination Meeting has been set up to identify and resolve major problems and streamline the land acquisition process and facilitate land resumption for public works. This is supported by district level committees which have been reorganised to deal more effectively with local issues.
The Architectural Services Department and the Medical Electronics Projects and Procurement Sub-divisions of the Electrical and Mechanical Services Department were certified to ISO 9000 quality standards in April and June 1995 respectively. To further promote quality management in public works construction, consultants for major consultancies and contractors for major contracts were required to be certified to ISO 9000 international quality standards by April 1 and October 1, 1996, respectively. The industry response was good. Meanwhile, the first phase of the Civil Engineering Department's quality management training programme started in mid- 1996 while the Department's Landslip Prevention Branch established a documented quality management system to ISO 9000 standard in October 1996. The Territory Development Department, Highways Department, Drainage Services Department and Water Supplies Department have also embarked on developing their own quality management systems.
The Port Projects Co-ordination Office was expanded in 1996 to facilitate the planning and implementation of the proposed port development. Key port projects that are in active planning include Container Terminals 9, 10 and 11. The office is co- ordinating the investigation and construction of various new port facilities such as typhoon shelters, sites for mid-stream operations and river trade terminals.
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During the year, the government announced additional safety initiatives to promote safety and health on public works construction sites. To this end, a Pay for Safety Scheme and an Independent Safety Audit Scheme, together with a system of sanctions, are being progressively introduced into capital works contracts to encourage contractors to give site safety a high priority. To help promote safety, basic safety training courses are being organised jointly by the government, the Hong Kong Construction Association and local institutes such as the Construction Industry Training Authority and the Occupational Safety and Health Council.
The government also took steps to improve building safety in the private sector through the setting up of a special task force to inspect construction/demolition sites; and through legislative amendments to improve the registration of building professionals and contractors and to enhance the safety of building and demolition works. The outcome of an on-going consultancy on older buildings will provide useful information for mapping out a strategy to ensure proper building repair and maintenance.
After conducting a comprehensive review on slope safety in 1995, the government increased manpower resources and funding for the Geotechnical Engineering Office (GEO) in order to accelerate the Landslip Preventive Measures (LPM) Programme. The GEO stepped up its publicity campaign on slope maintenance, published guides on the subject and set up a hotline. În 1996, a consultancy was commissioned to
In identify the maintenance responsibility of all man-made slopes throughout Hong Kong. A standing committee was set up in the Works Branch to take forward proposals on legislative control of private slopes and on maintenance of public slopes. The government has also made substantial progress in implementing all five of the recommendations made by the Canadian geotechnical expert, Professor N. R. Morgenstern, after his investigation of the Kwun Lung Lau landslide in late 1994.
The Electrical and Mechanical Services Trading Fund was set up in August 1996. With the exception of regulatory services, all major operations in the Electrical and Mechanical Services Department were put under the Trading Fund. The fund will enable the department to operate more flexibly, efficiently and responsively and hence provide better services to its clients.
Improvements were made to the Water Supplies Department's operations and efficiency after a management review was completed in October 1995, and other measures are being considered. Meanwhile, work has started on digitally mapping all of the department's underground assets, to assess their condition and to evaluate the capital and recurrent costs of operating and maintaining them in an efficient manner. The Sewage Services Trading Fund was set up in March 1994 to operate and maintain Hong Kong's sewage services and also to collect sewage charges in accordance with the 'polluter pays' principle. The sewage charging scheme started in April 1995. A proposal to increase sewage charges to meet the rising costs of the expanding sewage services was not approved by the Legislative Council in July 1996 and, as a result, the Trading Fund is projected to run into deficit beginning in 1997-98.
The Organisational Framework
The main objectives of the government's lands and works policies are to ensure an adequate supply of land to meet the needs of the public and private sectors, to
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optimise the use of land within the framework of land-use zoning and development strategies, and to ensure the co-ordinated development of infrastructure and buildings.
The Secretary for Planning, Environment and Lands is chairman of a committee, which is responsible for monitoring the general progress of the physical development of the territory, as well as considering and endorsing detailed planning briefs, layouts and development plans. He is also chairman of the Town Planning Board, and has policy responsibility for conservation.
In addition to his policy functions, the Secretary for Planning, Environment and Lands oversees the operation of the Buildings Department, Drainage Services Department (jointly with the Secretary for Works), Environmental Protection Department, Lands Department and Planning Department, as well as the Land Registry, which is operated on a trading fund basis. He also oversees part of the work of the Agriculture and Fisheries Department, Civil Engineering Department, Electrical and Mechanical Services Department, Marine Department and Territory Development Department and the Government Laboratory.
The Secretary for Works oversees and has policy responsibility for the works agency activities of the Architectural Services Department, Civil Engineering Department, Drainage Services Department, Electrical and Mechanical Services Department, Highways Department, Territory Development Department and Water Supplies Department. He is responsible for the supply of drinking and flushing water in the Water Supplies Department, the Sewage Services Trading Fund in the Drainage Services Department and the Electrical and Mechanical Services Trading Fund in the Electrical and Mechanical Services Department. The new Airport Projects Co-ordination Office (NAPCO) was set up in February 1991 under the Secretary for Works to co-ordinate the implementation of the Airport Core Programme (ACP). The Port Projects Co-ordination Office was set up under the Secretary for Works in 1995 to ensure efficient co-ordination of port projects.
Planning
Town planning is carried out by the Planning Department under policy directives from the Planning, Environment and Lands Branch and the Housing Branch. During the year, the department was involved in the drafting of an amendment bill to the existing Town Planning Ordinance and the Town Planning White Bill; reviewing the Territorial Development Strategy and the Metroplan; updating the Development Strategies for the North-West and the South-West New Territories; and the Hong Kong Planning Standards and Guidelines. It also identified housing sites, assessed housing demand and forecast of land supply for housing and other major land uses; plus following up on the Port and Airport Development Strategy, and the Rural Planning and Improvement Strategy.
The department was also engaged in forward planning, including efforts to co- ordinate the formulation of the urban renewal strategy and programme, and development control for the districts; and in undertaking enforcement action against unauthorised developments in designated rural areas.
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Review of the Town Planning Ordinance
The Town Planning Ordinance was enacted in 1939 and had remained largely in its original form. In 1987, the Governor in Council (G in C) ordered that an overall review of the ordinance should be undertaken, with a view to introducing new legislation to meet Hong Kong's changing circumstances.
A consultative document on the comprehensive review of the Town Planning Ordinance was published in 1991 to solicit public views. As part of the review, a special committee was set up to consider the complex and contentious issues of compensation and betterment arising from planning actions. The recommendations of the special committee were published in 1992. While the administration was taking stock of the situation in light of the submissions and views received from the public, some less-controversial but more urgent proposals were put forward in amendment bills which resulted in the enactment of amendments to the Town Planning Ordinance in 1994 and 1996.
Technical work on the review is now complete and the administration has consolidated the major proposed changes to the planning system in the Town Planning White Bill. The White Bill was published in July 1996 for public consultation until end of the year.
Hong Kong Planning Standards and Guidelines
This is a government document of planning criteria and guidelines for determining the quantity, scale, location and site requirements of various land uses and facilities. It is applied to planning studies, the preparation or revision of town plans and development control. It is constantly under review to take account of changes in government policies, demographic characteristics as well as social and economic trends. Major works undertaken during the year included the formulation and revision of planning standards and guidelines for community centres, recreation and open space, industry and retail facilities.
To promote public awareness of planning and to facilitate the use of the document by non-government bodies, it has been made available in various libraries. The document is also available for sale to the public, on a chapter-by-chapter basis.
Territorial Development Strategy
The Territorial Development Strategy (TDS) is the highest tier in the hierarchy of town plans in Hong Kong. It provides a broad, long-term framework on land use, transport and environmental matters for the planning and development of the territory. It aims to facilitate the continued growth of Hong Kong and promote its hub functions as a regional centre of business and finance, a high-capacity container port and an international focal point for aviation.
A comprehensive review of the strategy commenced in 1990. Two development scenarios have been postulated in the current TDS Review. The first scenario assumes the Pearl River Delta area as Hong Kong's primary economic catchment, and the second includes both Guangdong province and other inner provinces of China as Hong Kong's economic catchment.
The TDS Review consists of three main streams of work: the foundation studies including identification of goals and objectives, key issues and evaluation criteria; the
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formulation and evaluation of TDS development options on the basis of the foundation studies; and the formulation of a recommended long-term development strategy for the territory and a medium-term strategy with an outline development programme. A public consultation exercise in 1993 sought public views on goals/objectives and strategic development options. The technical part of the review was completed and a Consultative Digest was produced in July to invite public comments until end of 1996.
Sub-regional Development Strategies
These strategies serve as a bridge between the TDS and district plans. They translate long-term, broad-brush territorial concepts and goals into district planning objectives for the five sub-regions of Hong Kong: the Metro area, North-East New Territories (NENT), South-East New Territories (SENT), North-West New Territories (NWNT) and South-West New Territories (SWNT).
The Metroplan Selected Strategy was approved by the G in C in 1991 as a planning framework for developing and upgrading the Metro sub-region, including Hong Kong Island, Kowloon, Tsuen Wan and Kwai Tsing, up to the year 2011.
Following the approval of the Metroplan Selected Strategy, steps have been taken to prepare a series of Development Statements to translate the Metroplan concepts into more specific district planning objectives. The Development Statements for West Kowloon, South-East Kowloon, Tsuen Wan-Kwai Tsing were completed. The Hong Kong Island West and Central and East Kowloon Development Statements have recently been completed and released for public consultation. With the completion of the TDS Review, the Metroplan is now under review to produce an updated planning framework for the development and redevelopment of the Metro Area.
Work on the review of the NWNT and SWNT sub-regional development strategies is in progress. These reviews aim at producing an appropriate land-use, transport and environmental framework to guide the planning and development of the sub-regions up to 2011. A Tuen Mun East Development Statement was completed in 1996.
The NENT Development Strategy Review has been completed. A review for the SENT is not required at this stage, as the general planning policy of conservation of the countryside and the enhancement of the recreation potential in SENT (except for the new town development in Tseung Kwan O) remains unchanged.
District Planning
Development projects are implemented in accordance with statutory or departmental district plans. These plans aim to regulate and provide guidance to development in terms of land-use, building density and development characteristics, to ensure that they are in line with the planning objectives of the districts.
Statutory Planning
Two types of statutory plans are prepared by the Town Planning Board (TPB) under the Town Planning Ordinance (TPO): the outline zoning plans (OZPs) and development permission area (DPA) plans. The DPA plans are prepared for areas not previously covered by OZPs and they mainly cover the rural areas in the New Territories. Development scheme plans prepared by the Land Development Corporation (LDC) are also approved by the TPB.
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OZPs are intended to show the broad land-use framework of specific area, including the major roads and other transport systems, and provide statutory planning controls such as specific development parameters within the concerned areas. DPA plans, on the other hand, are less comprehensive and definitive than OZPs. They are interim plans to be replaced by OZPs. In areas covered by DPA plans and their replacement ÖZPs, the Planning Authority can take enforcement actions against unauthorised development.
In 1996, four new OZPs to replace DPA plans were published, and 15 existing plans were amended by the TPB. At the end of the year, there were 89 OZPs (34 of them replacing DPA plans) and one DPA plan.
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Under the Town Planning Ordinance, any person affected by the statutory plan, including the LDC development scheme plans, can lodge objections with the TPB. In 1996, 476 objections to the draft plans were lodged, and 2 736 objections (including those brought forward from the previous year) were considered. Draft plans, together with amendments made to meet objections and unwithdrawn objections, will be submitted to the G in C for approval. In 1996, five OZPs, four DPA plans and two LDC Development Scheme Plans were approved.
Attached to each statutory plan is a set of notes indicating the uses which are always permitted and uses for which the TPB's permission must be sought in particular zones. In 1996, the TPB considered 870 applications for planning permission and 101 reviews of planning applications.
Guidelines are formulated by the TPB to help applicants submit planning applications. The TPB has promulgated 14 sets of such guidelines and has published an annual report since 1990.
The Town Planning Appeal Board, a body independent of the TPB and government departments, was set up in 1991 to deal with appeals lodged by applicants who feel aggrieved by the decisions of the TPB upon review of their planning applications. Including those cases brought forward from the previous year, the Appeal Board heard nine cases in 1996, of which one case was allowed and eight cases were dismissed. Eight cases were abandoned by the appellants.
Departmental Plans
Apart from statutory plans, the Planning Department also prepares departmental outline development plans (ODPs) and layout plans (LPs) for individual districts or areas to show the planned land uses, development restrictions and transport networks in greater detail. At the end of the year, there were a total of 85 ODPs and 331 LPs.
Enforcement
Under the Town Planning Ordinance, no person should undertake or continue a development in a development permission area unless the development was a use in existence before the gazetting of the relevant Interim DPA/DPA plans, or is permitted under the DPA plan or the replacement OZP, or has been approved by the TPB. Any development that does not satisfy any of these criteria is an unauthorised development.
The Planning Authority may serve notices on the respective land-owners, occupiers and responsible persons, requiring them to discontinue the unauthorised development by specified dates unless planning permission for the development is obtained, or
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demanding a reinstatement of the land. It is an offence in law if the requirements of the notices are not complied with.
Most of the unauthorised developments detected in 1996 were related to site formation; earth-filling; the open storage of vehicles, containers, trailer/tractors and construction materials; and vehicle repair workshops. These caused the serving of 1061 enforcement notices for 200 cases, and 87 reinstatement notices for 13 cases. Positive attempts were made to reinstate those sites which had caused adverse environmental hazards or flooding hazards. In the Ping Che and Ta Kwu Ling area, the illegally filled rivers were reinstated successfully.
Prosecutions were conducted in respect of 48 cases, and 87 defendants in 47 cases were convicted. As a result of increasing the maximum fine for unauthorised development offences under the Town Planning Ordinance with effect from June 1995, the average fine which had been imposed on the convicted defendants was about $40,512, with a range of $5,000 to $217,500.
Special teams have also been set up to work in collaboration with the Task Force (Black Spots), Lands Department on the common objective of cleaning up the environmental black spots in rural New Territories. The special teams are to expedite enforcement and prosecution actions against unauthorised developments in the Pat Heung Pilot Action Area and the North District East Action Area.
Urban Renewal
To create a better urban environment through comprehensive redevelopment, urban renewal frameworks have been prepared for various urban districts in the old urban
areas.
The Land Development Corporation (LDC) was established in 1988 to undertake, encourage, promote and facilitate urban renewal. Since its inception, 10 urban renewal projects have been completed and 16 projects are under way.
During the year, the G in C approved two more LDC development scheme plans for comprehensive redevelopment in the older parts of Yau Ma Tei and Wan Chai. Six approved scheme plans are in different stages of implementation by the LDC in Hong Kong and Kowloon. Office and/or residential buildings, community facilities and public open spaces will be provided within these schemes. The LDC has also undertaken some smaller commercial and residential redevelopment projects to enhance the environmental conditions in the old urban areas. The Hong Kong Housing Society (HKHS) has also contributed to the urban renewal process by undertaking urban improvement schemes in the older areas.
In June, after considering the public views on the consultation document on Urban Renewal, the G in C approved a package of immediate and long term measures to address urban renewal problems. Subsequently, a dedicated urban renewal team was set up in September 1996 to formulate strategies and to monitor the implementation of the proposed measures. Immediate measures include the initiatives to grant sites (at reduced premium) to the HKHS which will act as the rehousing agent for the LDC, to test the linked-site approach by carrying out a pilot project, to extend the priority period in allocating public housing for the households affected by the LDC's redevelopment. Longer-term proposals include further study on the setting up of a statutory Urban Renewal Authority, the introduction of measures to encourage
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proper building maintenance, the creation of a rehabilitation fund, and a recommendation to facilitate private land owners to redevelop their properties.
Planning Studies
During the year, the Planning Department worked on several major reclamation proposals and development projects, notably the Central and Wan Chai, West Kowloon, Kowloon Point and Green Island reclamations. Studies were completed on site design parameters for the West Kowloon Reclamation; visitors and tourism in Hong Kong; ecological value of fish ponds in Deep Bay area; case studies arising from the Study on Restructuring of Obsolete Industrial Areas; leisure habits/ recreation preferences; the provision of industrial premises and development of planning guidelines and design parameters for new industrial areas and business park; and future use of Tsing Yi Town Lot 46 R P and possible foreshore reclamation at Tsing Yi power station site.
Studies including assessment of redevelopment potential in the metro areas; office decentralisation and the formulation of an Office Land Development Strategy; military sites in Kowloon and the New Territories for residential development are still ongoing. New planning studies on the Metroplan Review, survey of housing aspirations of households have begun. Other planning studies relating to the Territorial Development Strategy and Sub-regional Development Strategies were also conducted during the year.
Urban Development Areas
Work on new urban development areas generally followed the broad pattern of land- use and guidelines in the Metroplan and integrated with the replanning and redevelopment of adjoining old areas in a planned and co-ordinated manner.
Hong Kong Island
The Central and Wan Chai Reclamation extends along the waterfront from Sheung Wan to Causeway Bay. The first phase of the Central Reclamation, involving some 20 hectares at the Central waterfront, has been completed. This provides land for expansion of the Central Business District and construction of the Airport Railway's Hong Kong Station, the latter being scheduled for completion by mid-1998.
The second phase of the Central Reclamation, involving about 5.3 hectares of land in the Tamar Basin area for commercial and open space development, was substantially completed. The infrastructure works are scheduled for completion in the first quarter of 1997.
The detailed design for the third phase of the Central Reclamation, which will connect Phase I and Phase II with the Wan Chai Reclamation, commenced in February 1995 and was completed in late 1996.
Most of the civil engineering works for Phase I of the Wan Chai Reclamation was substantially completed. To tie in with the target opening date of the Hong Kong Convention and Exhibition Centre Extension in mid-1997, the remaining road works are scheduled for completion in February 1997. Phase II of the reclamation is under planning and together with other phases of Central and Wan Chai Reclamation, it will accommodate the strategic road links between Central and the eastern part of Hong Kong Island.
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On the western side, the Belcher Bay Reclamation will provide about 10 hectares of land, mainly for the construction of Belcher Bay Link, a dual carriageway connecting the existing upgraded Connaught Road West with Smithfield in Kennedy Town. Both the reclamation and the construction of the road link began in May 1993 and are targeted for completion in March 1997, to tie in with the opening of the Western Harbour Crossing.
On the eastern side, the Aldrich Bay development would produce about 30 hectares of land for private and public housing, open space and other uses. The new typhoon shelter was put into use in early 1991, while reclamation of the old typhoon shelter started in August 1992.
The Siu Sai Wan development included site formation to prepare about 56 hectares of land for residential, government, institutional, community and other uses. Two secondary schools and two Private
Private Sector Participation Scheme housing developments were completed. Another Private Sector Participation Scheme housing development and an Urban Council sports ground are under construction.
Site formation and road works for public housing development at Woodside, Quarry Bay, will commence in August 1997 for the building works to start in May 1999 and be completed in May 2002.
Kowloon
Reclamation work at West Kowloon was substantially completed. Some 328 hectares of land have been formed, including reclamation at Stonecutters Island. The broad objectives of the project are to provide land for major transport links to the new airport at Chek Lap Kok, including Western Harbour Crossing, West Kowloon Expressway, a section of Route 3 and the Airport Railway. It also provides space to ease pressure on adjacent congested residential and industrial areas. The area will house about 91 000 persons. A large open space fronting the residential estate at Mei Foo Sun Chuen was formed, acting as a buffer zone between the residential area and the future West Kowloon Expressway. A similar open space fronting Nam Cheong Estate is being constructed and is scheduled for completion in mid-1997.
Reclamation at Hung Hom Bay was completed, providing 36 hectares of land for private and public housing, commercial development, extension of the existing Kowloon-Canton Railway freight yard, government facilities, institutional and community facilities, schools, open space and road works. The area will house about 11 500 people. Engineering infrastructure, including two trunk roads (the Hung Hom Bypass and Princess Margaret Road Link) is being constructed and will be completed in mid-1999 to tie in with future development.
The government is conducting a feasibility study on developing the existing Kai Tak Airport site area after Hong Kong International Airport is relocated to Chek Lap Kok. The preliminary concept is that about 270 hectares could be obtained from the existing airport site, some 300 hectares could be formed by reclamation in the longer term, and about 100 hectares will be reserved for the proposed typhoon shelter and cargo-working area at Cha Kwo Ling. The adjoining 270 hectares of existing urban areas at Hung Hom, To Kwa Wan, Ma Tau Kok and Kowloon City will offer opportunities for restructuring. A wide range of engineering works will be involved including the reprovisioning of marine and land-based facilities, reclamation, highway construction and the provision of drainage, sewerage, sewage treatment and
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other public utilities, continuing into the next century. If implemented, it would accommodate about 285 000 people and provide about 110 000 jobs. The detailed development feasibility study is scheduled to be completed by mid-1997.
Also in line with the Metroplan is the proposed Kowloon Point Development at the southern end of the West Kowloon Reclamation. A feasibility study started in August 1995 investigates the essential aspects of planning, urban design, landscaping, traffic and transport engineering, environmental impact assessment, port and marine works, programming and costing in developing Kowloon Point.
New Towns and Rural Townships
The development of new towns in Hong Kong continued in 1996, with the production of more land, new and improved infrastructure and community facilities. The provision of new roads, drains, sewers, etc., services the new land for building development. Concurrent with the engineering works was the landscaping and greening of the new towns.
At the end 1996, about 2.6 million people were housed in the new towns, provided with parks and open spaces, community and recreational facilities, schools, markets and shopping centres and convenient transport links.
Tsuen Wan
Tsuen Wan new town embraces the areas of Tsuen Wan, Kwai Chung and Tsing Yi Island. Its population is expected to stabilise over the next 10 years at around 700 000.
Hong Kong's container terminals are mainly concentrated in the Kwai Chung area. The new Container Terminal 8 is now operational. Container Terminal 9 is planned for South-East Tsing Yi.
Major highway projects will further extend and reinforce the main road network. The duplicate Tsing Yi South Bridge is under construction. A flyover across Castle Peak Road connecting Tsuen King Circuit and Sha Tsui Road is planned for construction in early 1997.
Additional community facilities are under construction, including Kwai Tsing Civic Centre, which will provide a 900-seat auditorium and auxiliary facilities such as an exhibition hall, dance room and restaurant.
Sha Tin
Sha Tin new town is already home for over half a million people. Developed in the early 1970s, it is well known for its planning and integrated development. About 73 per cent of the town's 545 000 people live in public housing developments, which comprise 15 public rental estates and 21 home ownership and private sector participation schemes. Together with some low-density private developments, the new town will provide houses for about 586 600 people by 2001.
Since 1981, development works have extended to Ma On Shan where reclamation was completed in 1994, with a total development area of about 2 000 hectares. Work on the last section of the primary road link to Ma On Shan Town Centre is scheduled for completion in 1998. The construction of Trunk Road T7, which will bypass the Town Centre, is under planning. Three additional public housing estates/Home
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Ownership Schemes projects have been proposed for construction in 1996. Upon full development, Ma On Shan will house 200 000 people.
The programme to improve conditions in the old villages in and around Sha Tin continues. The village improvement schemes for Hin Tin, Sheung Keng Hau and Ha Keng Hau were completed in 1994. The extension of Sha Tin Tau Village started in 1995 and was completed in mid-1996. Servicing and minor formation works are being carried out for villages at Ngau Pei Sha, Chap Wai Kon and To Shek.
Tai Po
In the past 20 years, Tai Po has grown from a small market town of 25 000 into a new town with a population of 259 000 on about 1 270 hectares of land.
This new town is well developed with the major infrastructure in place, including the Tai Po sewage treatment works, which will cater for the remaining development in the town area and the industrial estate.
The Nethersole Hospital was completed in 1996 and the Tai Po Convalescent/ Infirmary Hospital will be completed in 1997. Phase 1 of the Waterfront Park near Fu Shin Estate was open to public in 1996 and Phase 2 will be completed in early 1997.
Fanling and Sheung Shui
Fanling and Sheung Shui, which are close to the Chinese border, sustain a population of around 195 000 people on about 773 hectares of land. Their combined population is expected to increase to 230 000 by the turn of the century.
The construction of the North District Hospital is continuing. Planning and implementation of various flood control measures are under way in the upstream and downstream sections of River Indus to tie in with the Shenzhen River regulation project to provide significant flood relief by end 2001.
Tuen Mun
Tuen Mun, in the West New Territories, is developed mainly on land reclaimed from Castle Peak Bay and on platforms formed in the valley between Castle Peak and the Tai Lam Hills. About 1 200 hectares of land have been provided for development.
About 73 per cent of the town's 432 000 people live in public housing developments, which comprise 11 public rental estates and 16 home ownership and private sector participation schemes. Within the next five years, four more home ownership and private sector participation schemes and one public rental estate will be developed to accommodate an additional 65 000 people. Together with some low-density private housing developments along the south-eastern coast, the new town will provide homes for about 490 000 people by 2001.
A 125-hectare site in western Tuen Mun has been earmarked for special industries. A terminal for river trade with China is being developed by the private sector. Reclamation work for the special industry area began in September 1995. A new thermal power station, with a 5 000MW capacity, is being built at Black Point.
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Yuen Long, Tin Shui Wai and North-West New Territories
Yuen Long town was first developed in the early 1970s. Its population, which stood at 120 000 at the end of the year, is expected to grow to 150 000 early in the next decade.
Development is spreading to the Tuen Mun-Yuen Long Corridor. The rural area is being rejuvenated, with new infrastructure providing for improved rural development. The construction of new infrastructure at Hung Shui Kiu and Ping Shan areas will be implemented in different stages commencing in the end of 1997 for completion by 2002.
Tin Shui Wai has become the focal point for development after Yuen Long in the NWNT. An initial Development Zone of 220 hectares has been developed into a new town for about 150 000 people, complete with major infrastructure and a full range of community facilities.
With the increasing demand for land to meet future housing needs, engineering investigations for further expansion of Tin Shui Wai into the Reserve Zone were commissioned in November 1995. Upon full development, the population of Tin Shui Wai is expected to reach 315 000 before 2004.
Large tracts of low-lying land north and west of Yuen Long are particularly susceptible to flooding during heavy rains. A series of major flood prevention projects are being implemented to solve this problem. Apart from the flood control works for the Shan Pui River, the downstream and mid-stream sections of the Kam Tin River that are currently in progress, there are also two village flood protection projects at Sha Po Tsuen and San Tin villages due to start in early 1997.
Tseung Kwan O
The development of Tseung Kwan O new town, which started in 1982, is divided into three phases. Phase I has been substantially completed, with about 568 hectares of land formed. Engineering infrastructure has been provided to cater for private and public housing and associated community facilities.
Phase II includes the reclamation and engineering infrastructure for the town centre northern area, to be completed in early 2000. It will provide 96 hectares of land for commercial, residential, government, institutional and community uses.
Phase III for the reclamation of Town Centre South and the provision of land and services for the Tseung Kwan O Industrial Estate is also in progress. An initial 30 hectares of land was completed in March 1995. Upon completion in 1997, an additional 65 hectares will be available for industrial development. The southern part of Siu Chik Cha is being developed for industrial use.
In preparation for further industrial development, about 102 hectares of land south of Tseung Kwan O will be developed for deep waterfront industries and potentially hazardous installations. Reclamation is in progress. The population of the new town, which stood at 142 000 at the end of March 1996, will be more than 440 000 upon full development by 2010. The proposed extension of MTR to Tseung Kwan O and the Western Coastal Road, both intended to improve the traffic of the new town with the metro area, are now under study.
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Islands District
Hong Kong's ninth new town is about to take shape at Tung Chung on northern Lantau Island and will provide a supporting community for the new airport at nearby Chek Lap Kok. The new town will be developed on about 760 hectares of land and will be designed to modern international standards, with residential, industrial and commercial developments and all the necessary supporting infrastructure.
The new town will comprise two urban development areas at Tung Chung and Tai Ho, with proposed populations of 150 000 and 50 000 respectively, by the year 2011. Possible expansion areas in the new town have the potential to accommodate an additional population of 60 000. The Tung Chung town centre will be the retail, commercial and cultural core of the new town. Land will be reserved at Siu Ho Wan for airport-related industrial uses and major utilities, including a water treatment works, a sewage treatment works, railway depot and a refuse transfer station.
There will be five phases of development for the new town. The first phase is earmarked as one of the Airport Core Programme projects and will be substantially completed by 1997 accommodating about 20 000 residents at Tung Chung. Construction of the first stage of the North Lantau sewage collection, treatment and disposal system has been completed. Site formation and infrastructure works for the Phase II development are also in progress.
Elsewhere in the Islands District, major capital works including site formation for the rural public housing estate and Home Ownership Scheme in Sin Yan Tseng, Cheung Chau has recently been completed. Construction of sewers for Pun Lo Pang, Tai O and the road improvement works for Cheung Chau Old Town has just started.
Rural Planning and Improvement Strategy
The Rural Planning and Improvement Strategy (RPIS) aims to improve the quality of life in the rural areas of the New Territories. It is implemented at both strategic and district levels.
At the strategic level, land-use policies are continuously reviewed to control incompatible developments and provide a more sustainable and cost-effective basis for public and private investments. Several reviews and studies have been, or are being, undertaken, including studies of open storage and port back-up land requirements, and a review of the rural improvement concept.
At the district level, minor improvement projects are undertaken under the rural development programmes. The Home Affairs Department, by virtue of its close contacts with rural residents and groups, knowledge of local needs and well- established consultation mechanism, assumed control for the planning, management and implementation of minor rural improvement schemes since late 1994.
A streamlined two-tier administrative structure consisting of the RPIS Minor Works Steering Committee attended by representatives from Heung Yee Kuk and New Territories District Boards (NTDBs) and the District Working Groups attended by representatives of NTDBs and Rural Communities has been adopted. With this two-tier structure, there is a stronger local participation in the identification of local needs, prioritisation of project implementation and resolving of local objections.
Major improvement works, such as river-training works and village flood protection works, continued to be implemented by the Territory Development
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Department through either agent departments or consultants. Construction of the downstream and mid-stream sections of the main drainage channel for Yuen Long and Kam Tin are progressing satisfactorily. Other drainage channel works in Yuen Long, Kam Tin and Ngau Tam Mei areas are under planning. The village flood protection works at Sha Po Tsuen, Pok Wai and San Tin Villages are also being planned.
Building Development
The Private Sector
Private building development underwent another year of consolidation in 1996. The number of building plan submissions decreased from 14 899 in 1995 to 13 340 in 1996, and 1 000 buildings with a total floor area of 3.2 million square metres were completed at a cost of $28.08 billion. This compared with 1 090 buildings with a total floor area of 3.8 million square metres built at a cost of $29.55 billion in 1995.
Private sector activity continued to include redevelopment of existing sites, alterations and additions to existing buildings, and, to a lesser extent, new developments. Measures taken by the Buildings Department to encourage hotel development had a significant effect on an earlier trend towards replacing hotels with office buildings.
The department has been increasingly involved with the extensive building works associated with Chek Lap Kok New Airport, including the 490 000 square metre Passenger Terminal Building, the Ground Transportation Centre and the Air Cargo Terminal.
New legislation came into effect on February 1, 1996, empowering the Building Authority to ban hand-dug caisson operations for the protection of workers' health and safety. The authority would approve hand-dug caisson works only under special circumstances. In 1996, it approved three out of a total of 26 applications. A special site monitoring task force was set up to enhance the safety of construction and demolition sites in the private sector. Its regular inspections effectively enhanced site safety.
The Buildings Ordinance was amended in 1996, to improve the registration systems of authorised persons, registered structural engineers and contractors, and to require the preparation of a supervision plan for dangerous and potentially dangerous building works and sites. The plan sets out the supervision duties of different parties involved and the degree of supervision at different levels of responsibilities.
The Buildings Department completed the planned survey of 16 700 private buildings initiated in 1989 and 6 187 statutory orders were served, requiring certain buildings to be repaired or demolished. The consultancy study on the 1946-58 age group buildings was completed. The characteristics and trends of deterioration were assessed and recommendations on the future inspection strategy made. A programme of inspection to implement the recommendations started in July. A consultancy study on the 1959-80 age group buildings started in September, and is expected to take two years. It will provide useful information for mapping out a strategy to ensure proper building repair and maintenance.
After several landslide incidents in recent years, the Buildings Department set up a dedicated team to monitor private slope safety in tandem with the accelerated
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Landslip Preventive Measures Programme. This has produced a significant increase in the number of statutory orders served on building owners requiring them to carry out slope remedial works. Many air-conditioning cooling towers in industrial areas have been left unattended in recent years as factory operations moved across the border. To ensure public safety, an operation was launched to remove abandoned or dilapidated cooling towers in San Po Kong and Chai Wan. In all, 1043 cooling towers were removed.
The government has been pursuing initiatives to improve fire safety standards in commercial premises. Fire safety measures in other premises, such as banks, jewellers, betting centres, shopping arcades and supermarkets, are also required to be improved.
The Public Sector
The Architectural Services Department (Arch SD) provides planning and technical advice on building-related matters to all government departments and financial control and project management for both public building developments under the Public Works Programme and subvented building projects financed by the government. It is also responsible for professional design services for government departments, the Hospital Authority, the Urban Council, the Regional Council and the Military Forces in Hong Kong; and it provides maintenance services for buildings owned or occupied by these bodies.
The department celebrated its 10th anniversary in 1996 with a series of events. Roving exhibitions were displayed in public venues in Hong Kong Island, Kowloon and the New Territories to show recently completed projects. Seminars were conducted for different target groups including client departments, professional institutes and the general public. The discussions included topics such as design and build contracts, landscape design, value management and professional practices, some being held in conjunction with mainland Chinese counterparts to share professional expertise and experience.
During the year the department's Quality Assurance Certificate, ISO 9001, was extended to include its Advisory Services. In addition, the new ISO 14 000 on Environmental Management is now being pursued. Value management techniques have also been introduced and used on eight major projects during the year with encouraging results. A new Project Management Branch has been established to process new projects more effectively. The branch consists of three Project Directors and 18 Project Managers who are now able to work dedicatedly with clients on their projects. An 'access to information' service has also been set up, provided to the public through assigned officers and a resource centre.
The Arch SD has also been active in the local professional scene. The Chan Nam Cheong, Special School project won the 1996 Hong Kong Institute of Architects President's Prize. Photographs of the Kun Ting Study Hall and the Restoration of the Tai Fu Tai Nobleman's House won a photographic competition on vernacular architecture held in the city of Tai Yuen in China. In the Urban Council Flower Show, the department won an award for design excellence in the Special Display Section (Local) for a Landscape Design.
During 1996, the Arch SD designed or constructed 392 projects valued at $41.2 billion. It monitored a further 416 projects valued at $18.2 billion. Actual expenditure
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on building projects undertaken or monitored by the department totalled $9.23 billion, with a further $2.3 billion being spent on routine maintenance and minor alteration works.
Design and Build contracts
The centralised government godown at Chai Wan was completed in 1996. Construction of a new joint-user office building in North Point and the Public Records Office at Kwun Tong began in 1996. A further joint-user office building in Cheung Sha Wan is planned to be completed by 1999.
Education
Eleven primary schools and 10 secondary schools were completed in 1996 under the School Building Programme. Three special schools, two prevocational schools and a field studies centre were also completed. Improvements to 70 schools were completed in 1996 under the School Improvement Programme. Construction work started on 11 primary schools, seven secondary schools, three special schools and a skills centre for the disabled. In addition improvement work on 77 schools was started under the School Improvement Programme.
Domestic
Projects completed for the disciplined services include the Fire Services married quarters in Ngau Chi Wan, junior disciplined services quarters at Wong Tai Sin and Correctional Services quarters at Pik Uk.
Disciplined Services
Fire Stations in Peng Chau and Causeway Bay were completed and Tung Chung Divisional Fire Station, Ambulance Depots in Lam Tin and Sham Tseng and Tung Chung District Police Station are under construction.
Infrastructure
Radar and telecommunication stations for the new Chek Lap Kok Airport have been completed. Construction work for the Air Traffic Control Complex and Tower, the Airport Police Station, the Sub-divisional Fire Station, the Government Flying Service and the Air Mail Centre are on track and the fitting-out work for the government facilities inside the Passenger Terminal Building started in the second half of 1996.
Military
Construction work is on schedule for various military reprovisioning projects: the Naval Base on Stonecutters Island, the Military Hospital in the Gun Club Hill Barracks, the Military Warehouse in Shek Kong and the Joint Movement Unit at the new airport at Chek Lap Kok. The fitting out of services and fittings for these projects, together with the supply and installation of mechanical and electrical equipment, will be completed in early 1997.
Medical and Health
During the year, medical projects completed include the construction of Queen Elizabeth Hospital Block B, air-conditioning to existing wards, refurbishment and
Piers for Hong Kong's Outlying Islands are nearing completion as work continues on the Central Station for the Airport Railway. This will be an express service stopping only at West Kowloon and Tsing Yi as it carries passengers between Central and the new
airport. Work should be completed by early 1998.
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under construction curves away from Kwai Chung towards the entrance to a cross-harbour tunnel that will link the territory's new airport with Hong Kong Island.
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▲ Workers are silhouetted against the Kowloon skyline as they build the new railway terminal's Hong Kong Island end. RIGHT: Construction work nears completion on the Ting Kau Bridge, one of several major works on which $26 billion will be spent up to the year 2001.
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improvement to Blocks E, G and H at Queen Elizabeth Hospital; the Royal Hong Kong Jockey Club Institute of Radiology and Oncology; Castle Peak Hospital Redevelopment Phase 1, Stage 1; Ha Kwai Chung Polyclinic, Princess Margaret Hospital Improvements to Blocks C and D and Queen Mary Hospital Clinical Pathology Block. Construction works have started on Butterfly Beach Laundry, Queen Mary Hospital Radiotherapy Department Extension, Princess Margaret Hospital Geriatric Day Patient Centre and the Centre of Nephrology & Urology, Kowloon Medical Rehabilitation Centre and Phase 2 of the Redevelopment of Queen Elizabeth Hospital Operating Theatre & Rehabilitation Block.
Leisure and Recreation
Major Urban Council projects completed in 1996 include the Smithfield, Wong Nei Chung, Hung Hom, and Sham Shui Po Complexes, Un Chau Street Building, Ko Shan Theatre, the Museum of Teaware (extension), Siu Sai Wan Sports Ground, Hammer Hill Leisure Pool Complex, Jordan Valley Leisure Pool Complex, Cornwall Street Park and Squash and Table Tennis Complex, Po Kong Village Road Indoor Games Hall and Jordan Valley Playground. Projects under construction include Hong Kong Central Library, Ap Lei Chau and Tai Kok Tsui Complexes, Shek Kip Mei Indoor Games Hall, Shek O Recreational Development, Ma Chai Hang Recreation Ground and Lai Chi Kok Park Stage II.
Regional Council projects completed during the year include the Swimming Pool Complex and Sports ground in Area 3, Tsing Yi; the Swimming Pool Complex at Area 100, Ma On Shan; the Swimming Pool Complex, Phase II at Area 26, Sha Tin; the Indoor Recreation Centre at Area 2, Tsuen Wan; Sha Tau Kok Market and Cooked Food Centre; the first phase of the provision of air-conditioning and improvement works to Indoor Recreation Centres; the first phase of improvement works to public toilets and markets; district open spaces at Tsing Yi, Tseung Kwan O and Tuen Mun. Construction works have started on a swimming pool, library, indoor recreation centre and district open space in Tseung Kwan O; a sports ground in Ma On Shan; the Regional Council Complex, Tsing Yi Town Centre; Peng Chau Market, Ma On Shan Park and the Heritage Museum in Sha Tin.
Landscape
The department is involved in landscape design and continuously contributes a major input towards the greening of Hong Kong. Besides the design and construction of parks, recreation areas, open spaces and sitting-out aras of various sizes, the ArchSD also co-sponsored two landscape seminars in 1996. The Eastern Regional Conference-Urban Explosion in Asia was held jointly with the International Federation of Landscape Architects and the Seminar on Classical Landscape of Chinese Imperial Gardens was undertaken jointly with the Chinese Landscape Association. The department's Property Services Branch continues to maintain and undertake minor works for about 7 000 public sector buildings and facilities. It also undertakes conservation and restoration works to listed buildings and gazetted monuments. The branch's specialist group is undertaking the conversion of the French Mission Building for use as Hong Kong's Court of Final Appeal and developing proposals for the restoration of Castle Peak farm buildings at Hung Lau as a memorial to Dr Sun Yat-sen, who once lived there.
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Energy conservation and environmental awareness is a global issue to which the department pays close attention. Energy efficient technologies and design techniques were adopted in new building designs for projects such as the Hospital Authority Building, North Point Government Offices, and Regional Council Heritage Museum. Solar energy has been adopted for use in Tsuen Wan Area 7 Swimming Pool and Sheung Shui Slaughter House. The Chinese version of the booklet, Energy Conservation in Buildings (aimed at promoting further energy conservation design and operation) was issued in March 1996.
Environmental impact assessments are carried out for all Arch SD projects that require them. Environmental audits were carried out for Arch SD offices and three selected major sites managed by the department. Noise abatement projects covering about 100 schools were completed in 1996. The department has appointed a Green Manager who is responsible for environmental issues.
Indoor air quality and odour control are always important design considerations for government premises. Cleaning facilities in air ducts have now become standard for office buildings, hospitals and other premises where large numbers of people will be present. This allows the survey of air ducts by optical means, cleaning of air ducts by compressed air and sterilisation by chemicals.
The department has taken the lead in the use of CFC-free chemicals for air- conditioning and fire services installations. For example, R-134a and ammonia have been used to replace conventional refrigerant; and HKC227ea has been used to replace halon fire-fighting agents. The department is continually searching for suitable new chemicals and techniques which do not have side effects such as global warming potential and are not hazardous to human beings or the environment.
Land Administration
The main functions of the Lands Administration Office of the Lands Department, which consists of a headquarters and 14 District Lands Offices, are land acquisition, land disposal, management of unallocated government land, and lease enforcement. Land use statistics are at Appendix 38.
Land Acquisition
When private property is needed in the public interest, mostly for the implementation of public works projects, and cannot be acquired by negotiation, it may be acquired under ordinances which provide for payment of compensation, based on the value of the property, and for business loss, where appropriate, at the date of acquisition. If agreement cannot be reached on the amount payable, either party can refer the claim to the Lands Tribunal for adjudication. Apart from statutory compensation, there is a system of ex-gratia payments. During 1996, about 443 000 square metres of private land were acquired at a cost of about $1.82 billion in the New Territories for public works projects, such as a new development phase of Tung Chung on North Lantau, and village flood protection schemes in Yuen Long and North District.
On Hong Kong Island and in Kowloon, about $128 million was paid in compensation for land and buildings acquired for public works projects, such as new open space developments at Lun Fat Street on Hong Kong Island, and Fung Tak Road extension in Kowloon, as well as road improvement schemes such as improvement work for Lung Cheung Road/Ching Cheung Road, Kowloon.
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The Lands Administration Office was also involved in the resumption of land for implementation of urban renewal schemes carried out by the Land Development Corporation and the Hong Kong Housing Society. A special team has been set up to deal with the Land Development Corporation projects. Private streets continued to be resumed to facilitate their repair and maintenance by the government.
Land Disposal
All land in Hong Kong is held by the government, which sells or grants leasehold interests. Such grants and leases are made in accordance with the terms set out in Annex III to the Sino-British Joint Declaration on the Question of Hong Kong. They are normally made for terms expiring not later than June 30, 2047. They are made at premium and nominal rental until June 30, 1997, after which an annual rent equivalent to three per cent of the property's rateable value will apply.
The amount of new land to be sold or granted each year, excluding land vested in the Hong Kong Housing Authority for public rental housing, is determined by the Sino-British Land Commission. The land disposal limit for 1996-97 is 310.17 hectares. Premium income obtained from land transactions is, after deduction of the average cost of land production, shared equally between the Hong Kong Government and the future Hong Kong Special Administrative Region Government. In 1995/96, revenue from land disposal amounted to $44.88 billion.
A land sales programme is issued at the beginning of each financial year and updated regularly, showing the details of public auctions and tenders throughout the year. Although most government land available for private sector development is sold by public auction or tender, land is also made available at nominal premium to the Housing Authority for its public rental estates and Home Ownership Scheme, and to non-profit-making charitable, medical and educational institutions which operate schools, hospitals, and social welfare and other community services. During the year, three sites with a total area of 6.73 hectares, were sold under the Private Sector Participation Scheme. Sites granted to the Housing Authority for the development of Home Ownership Scheme projects amounted to 22.01 hectares. They included three sites comprising 10.52 hectares in Tin Shui Wai and Yuen Long, four sites comprising 3.83 hectares in Kowloon East and a 2.08-hectare site in Tseung Kwan O.
Major land transactions included a five-hectare site in Hung Hom for a freight yard development for the Kowloon-Canton Railway Corporation; and a further five- hectare extension of the industrial estate at Tseung Kwan O.
Land Registration
Hong Kong operates a deeds registration system under the Land Registration Ordinance. The Land Registry is responsible for registering all documents affecting land. The Land Registry comprises the Urban Land Registry and eight New Territories Land Registries.
A land document is registered by delivering it to the appropriate land registry with a form containing the essential particulars of the document and the prescribed fee. These particulars are then entered into a register for the relevant piece of land or property.
Each land register provides a complete picture of all transactions affecting a property, from the grant of the government lease. The registers, memorials and
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related land documents are available for search by members of the public at the respective land registries on payment of a small fee. A purchaser or mortgagee will, therefore, be able to check and satisfy himself from the land register as to the nature of the title he is intending to purchase or accept by way of security.
An on-line computer search facility called the Direct Access Services (DAS) is also available. Subscribers to the DAS, mainly solicitors and other professional firms, can have direct access to the computerised registers and can place orders for copies of land records from computer terminals in their own offices without calling at the Land Registry.
All land registers in the Urban Land Registry are computerised. The land registers in the New Territories, presently in book form, are being computerised. The computerisation project will be completed in mid-1997.
Copies of all registered land documents are kept in the Land Registry for public search. A Document Imaging System commenced operation in July 1996. Land documents are scanned and stored as electronic images on optical diskettes. The images can be retrieved and distributed at high speed. The existing land documents which are kept in either microfilm or paper form are also being converted into electronic images in phases. The conversion will be fully completed by the end of 1998.
The Land Registration Ordinance provides that all land documents registered under it shall have priority according to their respective dates of registration. If a document is registered within one month of execution, priority shall relate to the date of execution of the document. Registration is essential to the protection of a land title but does not guarantee it.
A Land Titles Bill was introduced into the Legislative Council in November 1994 to replace the existing deeds registration system with one of title registration which will provide certainty of title to property, protect property owners and purchasers, and simplify title-checking procedures. The Legislative Council decided to curtail examination of the Bill in the legislative session which ended in July 1995. The Bill has been revised and may be re-introduced. Land registration statistics are at Appendix 38.
Government Conveyancing
The Legal Advisory and Conveyancing Office of the Lands Department provides professional legal services to the government for all government land transactions and associated matters. It is responsible for the issue, renewal, variation and termination of government leases as well as the drafting and completion of conditions of sale, grants and exchanges of government land, the apportionment of government rents and premiums, and the recovery of outstanding rents. It provides conveyancing services for the Housing Authority in connection with the sale of flats built under the Home Ownership Scheme, and for the Financial Secretary Incorporated in connection with the extension of non-renewable government leases, the purchase and sale of government accommodation in private developments, mortgages to secure interest-free loans to private schools, the purchase of properties for government staff quarters and group housing schemes for the elderly.
It is also responsible for the processing of pre-sale consent applications which are governed by the rules of the Land Authority's Consent Scheme. During the year, nine
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applications involving 3 001 residential units in the urban areas were approved and in the New Territories, 27 applications involving 15 322 residential units were approved.
Survey and Mapping
The Survey and Mapping Office of the Lands Department defines and records land boundaries of land developments, providing and maintaining territory-wide survey control networks, producing maps of the territory at various scales for land administration, engineering and legal purposes, and managing a computerised land information system.
The office supports government land transactions by defining and setting out the boundaries of land for sale, grant/regrant and so on., and maintains a comprehensive record of all leasehold and government land boundaries in digital form.
The territory-wide survey control networks provide the necessary reference points for all types of land and engineering surveys. A Global Positioning System, which receives signals from satellites to fix positions based on a global co-ordinate system known as the World Geodetic System 84, is used for establishing reference points.
Of the maps produced by the office, the 1: 1 000 scale basic topographic maps (3 000 sheets) serve as the foundation of all other mapping. Smaller-scale maps include the monochrome map series at 1: 5 000 and the coloured map series of scale ranging from 1: 20 000 to 1: 300 000. All topographic maps except the 1: 1 000 basic map series are bilingual. Guide books, tourist maps and leisure maps in the form of Countryside Series produced by the office are very popular.
The office also provides extensive cartographic services for many government departments. These include the production of coloured geological maps, thematic maps, weather forecasting plans, aeronautical charts, electoral boundary maps and pollution control maps. The office also prepares plans for land disposal, street and place naming, government gazette notices and legal purposes.
The computerised land information system allows the efficient maintenance and retrieval of the large-scale mapping and land boundary records, and the production of good quality plans. Digital maps at 1: 1 000 and 1: 20 000, which are on sale at the Land Information Centre, are widely used by government departments, public utility companies, engineering consultants and construction firms. Five more computerised mapping and survey projects were being implemented in the year to further improve the efficiency of the office in respect of map production, the setting up of the computerised mapping system, survey (mapping) intelligence system, cadastral survey plan index system and geodetic information system.
The Photogrammetric and Air Survey Section provides aerial photographs and photogrammetric mapping service for engineering design work, volumetric calculations for quarry and controlled tipping operations, environmental studies as well as town planning work. The section is also on call for record photography after storms, flooding, landslip and aircraft crashes. Photographs it takes are available for sale to the public.
The Land Survey Ordinance came into force in January 1996. Land subdivision for registration in the Land Registry has to be surveyed by Authorised Land Surveyors. The Survey and Mapping Office, being the Survey Authority, checks the quality of and keeps in custody the survey records for reference by other land surveyors.
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Drainage Services
The Drainage Services Department is responsible for planning, designing, constructing, operating and maintaining the sewerage, sewage treatment and stormwater drainage infrastructures. The Director of Drainage Services is also the general manager of the Sewage Services Trading Fund.
Treatment and Disposal of Waste Water
The treatment and disposal of waste water, including domestic sewage and trade and industrial effluent, are based on standards, strategies and programmes drawn up by the Environmental Protection Department. Planning, design and construction of the associated projects are carried out by the Drainage Services Department.
Waste water disposal projects are broadly divided into three categories: 'existing' sewerage or sewage treatment projects which were in the public works programme before the development in 1989 of the new strategy to combat water pollution; 'sewerage masterplan schemes' which are 16 territory-wide sewerage rehabilitation and improvement schemes; and the 'Strategic Sewage Disposal Scheme' under the new strategy. The latter is a multi-billion-dollar project to collect and treat sewage discharges from Kowloon, Tsuen Wan, Kwai Chung, Tseung Kwan O and the northern side of Hong Kong Island.
Projects under these three categories, valued at some $14 billion, were under construction by the Drainage Services Department, and projects worth a further $6 billion were at various stages of planning and design in 1996.
The largest 'existing' project completed in 1996 was the Tolo Harbour Effluent Export Scheme. This will export sewage effluent from the Sha Tin and Tai Po sewage treatment works into Victoria Harbour and help to prevent the occurrence of red tides in Tolo Harbour. Stage I of the works between Sha Tin and Victoria Harbour was completed in April 1995. Stage II of the works between Tai Po and Sha Tin was completed and commissioned in March 1996 and included the construction of a one- metre diameter, six-kilometre long, steel rising main buried under the seabed of Tolo Harbour.
Under the sewerage masterplan schemes, planning and design work was in hand to improve the sewage collection, treatment and disposal facilities in North District; Wan Chai East and North Point; Tseung Kwan O; Aberdeen, Ap Lei Chau and Pok Fu Lam; and the outlying islands. Construction work was in progress in the remainder of the 16 sewerage masterplan schemes.
In the Southern District of Hong Kong Island, the construction of drainage improvement works in Repulse Bay and Shek O were completed at the end of 1995 and 1996, respectively. This not only resulted in improved sewerage facilities, but also provided much-needed protection to the popular bathing beaches in this area of scenic natural beauty.
In the North and South Kowloon sewerage masterplan area, inspection and cleaning of major existing sewers were completed. New sewers and pumping stations in Tsim Sha Tsui and Hung Hom were being built.
Laying of new sewers in the urban areas of West Kowloon continued. Detailed design for the remaining sewers and the first stage of the stormwater drainage improvements in the North-West Kowloon area was in progress.
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In the area covered by the Tsuen Wan, Kwai Chung and Tsing Yi sewerage masterplan, work on three sewer contracts continued and is expected to be completed in July 1997.
The consultancy for the Sham Tseng and Ting Kau Sewerage Scheme was awarded in May 1995 and a contract to reclaim three hectares of land at Sham Tseng for the construction of a sewage treatment plant commenced in February 1996. The laying of public sewers along Castle Peak Road at Sham Tseng and the construction of the sewage treatment works under this scheme will commence-in mid-1997.
The construction of new sewers in East Kowloon continued. A further contract to improve the sewerage system in San Po Kong and Kwun Tong industrial areas was awarded in 1996.
Sewer laying under the Port Shelter sewerage masterplan for the villages of Tan Cheung, Po Lo Che and Tui Min Hoi was completed in 1996. Construction of a sewage pumping station, rising mains and associated sewerage works under the Tuen Mun sewerage masterplan was in progress while other sewerage works were under planning and design.
Under the Central, Western and Wan Chai West sewerage masterplan, construction work for laying 5.9 kilometres of trunk sewers started in 1996. To minimise inconvenience to the public, trenchless construction methods were adopted where appropriate. The construction works for building new pumping stations in the Central and Wan Chai East sewage screening plants and new screening facilities in the Wan Chai East sewage screening plant also commenced in 1996.
Under the Yuen Long and Kam Tin sewerage masterplan, construction works continued for the laying of 2.8 kilometres of rising mains from Yuen Long to Ha Tsuen, mostly by trenchless methods, and is expected to be completed towards the end of 1997.
Implementation of the $5.32 billion Strategic Sewage Disposal Scheme, Stage I, continued in full swing in 1996. All 15 works contracts had been awarded out of which three were completed. Construction of the world's largest chemically-enhanced primary sewage treatment works on Stonecutters Island, which will discharge the treated effluent into the western harbour, was progressing satisfactorily to meet the scheduled completion in mid-1997.
The main objective in 1996 was to bring about early improvements to the water quality around Victoria Harbour through a high-priority implementation of some of the above-mentioned projects, with a $6.8 billion injection of government capital.
Sewage Charges
Under the Sewage Services Ordinance passed in December 1994, a sewage charging scheme was introduced starting from April 1, 1995, to cover the cost of operating and maintaining the public sewerage systems. The scheme was established based on the 'polluter pays' principle: i.e. the higher the quantity and heavier the pollutant level of the wastewater one discharges, the more one has to pay for its treatment. All sewage charges collected were paid into the Sewage Services Trading Fund to pay for the operation and maintenance costs of sewage services. Every cent collected from the public went entirely towards the cost of providing the sewage services which they
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enjoy. Sewage charges amounting to $685 million were collected from the dischargers in the 1995-96 financial year.
Stormwater Drainage and Flood Control
The North and North-West districts of the New Territories are particularly vulnerable to flooding. The main causes leading to the aggravation of flooding in the New Territories have been the urbanisation of the rural areas and uncontrolled developments on the floodplains of the main rivers. The department has developed basin management plans for the five flood-prone basins in the North and North-West New Territories. They have been used to help to prepare outline zoning plans and development permission area plans. Furthermore, proponents of infrastructure projects with significant drainage impacts are also required to carry out drainage impact assessments so that the effect of flooding can be limited to an acceptable level. As a follow-up to the basin management plans, seven drainage masterplan studies will be carried out to cover most areas in the territory. The first one began in January 1996 and the rest will follow in phases. All studies will be completed by late 1999. The drainage capacity and the structural condition of the drainage system will be scrutinised. Recommendations for improvement works will be made so that flooding can be controlled and computerised asset management will be developed to facilitate the operation and maintenance of the drainage systems.
The government continued to implement schemes aimed at alleviating flooding in the North and North-West New Territories. Projects valued at some $6 billion were at various stages of planning, design and construction in 1996.
In the North-West New Territories, construction work on the improvement of the Kam Tin River and the Shan Pui River in Yuen Long progressed satisfactorily. Design work was in progress to build a further 24 kilometres of drainage channels in Kam Tin, Ngau Tam Mei and San Tin.
As an associated measure, 15 floodwater pumping systems have been built and were in operation to mitigate the impact of flooding in low-lying villages in the New Territories. Another 12 schemes were at various stages of planning, design and construction.
In the Northern New Territories, the construction of Stage I of the three-stage Shenzhen River Regulation Project was progressing satisfactorily and is scheduled to complete in May 1997. Working jointly with the Shenzhen Municipal Government, preparation for Stage II of the project was actively under way. The Stage II works were expected to start between late 1996 and the first half of 1997. The completed project will provide a higher flood protection level to the communities along the river. The Land Drainage Ordinance is an essential component of the strategy to alleviate flooding in the New Territories. It authorises government staff to gain access to, inspect, clear and maintain main watercourses running through or bordering on private land, in a further attempt to reduce the risk of flooding. It also empowers the government to control the erection of structures within main watercourses, to ensure their water-carrying capacity is not undermined. The ordinance became effective in the Yuen Long, Kam Tin, Ngau Tau Mei, Indus, San Tin, Ganges and Tin Shui Wai drainage basins in 1996.
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Operation and Maintenance of the Drainage System
The volume of sewage treated by the department has increased from 385 million cubic metres in 1989 to 750 million cubic metres in 1996, of which 150 million cubic metres received full biological treatment. This was handled by 105 sewage pumping stations and 70 sewage treatment plants throughout the territory.
Since the establishment of the department, the approach to the operation and maintenance of the public drainage system has progressively shifted from crisis. management to preventive maintenance. The efficient maintenance of the drainage infrastructure is essential to ensure the proper and effective disposal of waste and storm water, and to prevent blockages and leaks which cause bad odours, flooding and other nuisances to the public.
The department maintained more than 3 000 kilometres of watercourses, drains and sewers in 1996. Some 50 000 clearance exercises were carried out to remove more than 250 000 cubic metres of silt from drains and watercourses, to keep them free-flowing and their pollution level low. A 24-hour hotline service operated to receive complaints on blocked drains and sewers.
The department also operated an Emergency and Storm Damage Organisation. It was run by staff on a rotational basis and was supported by the department's own labour force and contractors. Its operation ensured that emergency situations were dealt with efficiently. Recurrent expenditure on operations and maintenance in 1996 was $900 million. This sum is increasing steadily.
Geotechnical Engineering
The Geotechnical Engineering Office (GEO) was established after the landslip disasters of the 1970s. The control of geotechnical aspects of construction works to reduce landslip risk continues to be its foremost duty in terms of staff deployed. Geotechnical checks were made on 10 625 design proposals during the year.
The Slope Safety Review Report prepared in 1994 has been implemented in various aspects of GEO's work. These include accelerating the Landslip Preventive Measures (LPM) Programme to increase the annual output of upgrading works for 1996. During 1996, a total of $330 million was spent on the LPM programme. LPM works were completed on 60 government slopes and statutory notices were recommended for 250 private slopes. This represents a five-fold increase over 1995. Preliminary studies were carried out on 3 500 slopes and detailed geotechnical investigations were completed on 480 slopes.
During the year work continued on the 'Systematic Identification and Registration of Slopes in the Territory' (SIRST) project. A new computerised Slope Information System is being compiled. It contains important information on all sizeable man- made slopes and retaining walls in the territory.
The GEO strives for continuous improvement. A new mission statement for the office was drafted, and improvements were made to provide a better service to the community. These include the automation of the GEO Slope Maintenance Hotline in October 1995 to give a 24-hour service to members of the public seeking information on slope maintenance. An educational video on Slope Maintenance has been produced and distributed to organisations concerned with slope maintenance. The
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emergency system for providing professional assistance in landslip incidents has been upgraded through improvements in communications and transport.
In August the GEO began a new publicity campaign to reduce landslip risk by reducing public vulnerability. The landslip warning messages broadcast by radio and television were revised to give specific advice to the public to take personal precautionary actions. Warning signs are being erected along busy roads with histories of landslips and at slopes scheduled for upgrading. The message is amplified in an explanatory pamphlet advertised by television and radio announcements.
The GEO's squatter village inspection programme aims to identify dwellings which are especially vulnerable to landslips during heavy rainfall. During 1996, inspections were made on 16 squatter villages in the New Territories. Recommendations were made for the clearance and rehousing of the occupants of more than 62 squatter huts. The GEO recommended rehousing the occupants of 470 structures after inspections at Lei Yue Mun and other villages.
In 1996, the Hong Kong Geological Survey published the 1: 20 000 scale geological maps for Shek Pik and a memoir on the geology of Lantau District. A 1: 5 000 geological map of the Ma On Shan area was published and sheet reports detailing the geology of the Ma On Shan area and North Lantau Island were also completed. The survey responded to 1525 requests for advice. During the year, geological engineering studies were completed for an area near Tung Chung new town, which is being built in North Lantau.
The GEO's Geotechnical Information Unit (GIU) in the Civil Engineering Library houses the largest collection of geotechnical data in Hong Kong. It is open to the public and served more than 10 000 users during 1996.
The GEO manages the Public Works Central Laboratory at Kowloon Bay and seven Public Works Regional Laboratories in various parts of the territory. These laboratories are accredited under the Hong Kong Laboratory Accreditation Scheme (HOKLAS) to carry out specific tests on construction materials and to provide laboratory calibration services. More than 440 000 tests were carried out in 1996. A new section of the laboratory was set up to extend the services to cover rock mechanics testing.
The GEO provides ground investigation services for government projects. In 1996, major ground investigations were carried out for the proposed South-East Kowloon Development, the Wan Chai Bypass and the Eastern Corridor Link, the widening of Tolo Highway, further reclamation at Sham Tseng, Stubbs Road widening, Public Housing Development at Woodside and a number of sewerage projects on Hong Kong Island and in the New Territories. Also, a large number of ground investigations were completed for the accelerated LPM Programme. In 1996, the GEO provided geotechnical advisory services to government departments on a wide range of projects including road improvement works, such as the Lung Cheung Road widening project, the construction of embankments on soft clay for the Shenzhen River Regulatory Works, drainage improvement work in Yuen Long and the geotechnical aspects of landfills and numerous other projects.
Fill Supply and Mud Disposal
The territory's fill resources are managed by the Fill Management Committee, whose secretariat is a division of the Geotechnical Engineering Office (GEO). The
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committee was set up in 1989 to make decisions on the reservation, allocation and efficient utilisation of fill resources for government and major private sector projects. It consists of representatives from a broad spectrum of government departments and policy branches involved in the development of the territory.
From the beginning of 1990 up to the end of 1996, about 260 million cubic metres of marine fill (about 10 per cent from China) and 152 million cubic metres of land- based fill had been used for reclamation projects. A further 310 million cubic metres of fill are likely to be required for reclamations over the next 10 years. Most of this is expected to come from Chinese waters where, with the agreement of Chinese authorities, GEO ground investigations have now identified considerable reserves of sand.
A second role of the committee is to plan the marine disposal of dredged mud, including contaminated mud, and to allocate disposal capacity at the gazetted marine disposal grounds. During the year under review, approximately 16 million cubic metres of uncontaminated mud were disposed of under licences issued by the Environmental Protection Department. The uncontaminated mud was dumped in submarine spoil grounds and in worked-out marine borrow pits, and the contaminated mud was disposed of in sea bed pits at East Sha Chau which were planned, designed and managed by the Fill Management Division and Port Works Division of the Civil Engineering Department. In 1996, additional work was undertaken to increase the disposal capacity of these pits from 3 million cubic metres to 10 million cubic metres. Another pit with a capacity of 30 million cubic metres was being planned.
Under the Fill Management Committee, the Public Dumping Sub-Committee was established to co-ordinate the public dumping activities which achieved the dual functions of recycled use of inert construction waste and supply of fill materials for reclamations. In 1996, the quantity of recycled inert construction waste used in reclamations reached a record figure of 5.0 million cubic metres.
In connection with the management of the territory's fill resources and mud disposal capacity, the GEO, on behalf of the Fill Management Committee, continued to undertake a series of environmental and ecological studies to examine the effects of the dredging and disposal activities, and to investigate possible ways to avoid or minimise adverse effects on the marine environment.
Hydraulic Studies
Large reclamation projects can have significant effects on the flow of water, sediment transport and wave activity in the harbour. Any adverse effects could be very costly or difficult to remedy. To avoid these problems, the Civil Engineering Department employs sophisticated hydraulic models to analyse the likely effects of proposed schemes and check that they are within acceptable limits. The facilities used include computer-based mathematical models and a large physical model housed in the Harbour Hydraulics Laboratory at Tuen Mun.
The assessments provided by these models are used for planning reclamation layouts, the design of marine structures, navigation studies and the planning of future maintenance dredging requirements. In order to have a more comprehensive assessment of the hydraulic impact, the Civil Engineering Department is enhancing its physical and mathematical hydraulic models. The enhancement of the physical
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model commenced in October 1995 and was completed at the end of 1996. The upgrading of the mathematical models began at the end of 1996 and will be completed by the end of 1997.
Due to the increase in marine traffic through Victoria Harbour and the reflection of ship waves from solid vertical seawalls, ship berthing and cargo handling have become more difficult and riding on small ships in the harbour has become less comfortable. To investigate the wave agitation problem in the harbour and recommend short- and long-term engineering solutions to ease the problem, the Civil Engineering Department has commissioned a study of inner harbour waves and their reduction. This began in February 1996 and will take about 12 months.
Water Supplies
Water from Guangdong
Rivers in Guangdong are the major source of water supply for Hong Kong, and all future increases in demand will be met from this source. This arrangement dates from 1960, when a scheme was first formulated for receiving a piped supply of 22.7 million cubic metres a year. The supply from Guangdong stipulated under the agreements was increased to 720 million cubic metres a year in 1996. This will continue to increase in stages to 840 million cubic metres per annum by the year 2000 and to 1.1 billion cubic metres per annum by the year 2010. Extra purchases may be made in years of low rainfall in Hong Kong. A major project for the necessary works to receive and distribute the additional supply is being implemented in stages, with the first stage being completed and commissioned in 1995.
Water Storage and Consumption
Full supply was maintained throughout the year. At the end of 1996, 477 million cubic metres of water were in storage, compared with 497 million cubic metres at the end of 1995. Hong Kong's two largest reservoirs, High Island and Plover Cove held 430 million cubic metres. Rainfall for the year was 2 249 millimetres, compared with the average of 2 214 millimetres.
A peak daily consumption of 2.82 million cubic metres was recorded on September 3, compared with the 1995 peak of 2.78 million cubic metres. The average daily consumption throughout the year was 2.54 million cubic metres, an increase of 0.7 per cent compared with the 1995 average of 2.52 million cubic metres. The consumption of potable water totalled 928 million cubic metres, compared with 919 million cubic metres in 1995. In addition, 185 million cubic metres of sea water were supplied for flushing, compared with 159 million cubic metres in 1995.
Water Works
Major construction work completed during the year included the Ma On Shan Treatment Works and Sai O Pumping Station. Construction work for the major renovation of the sea water supply system for Central Kowloon, Central and Western areas on Hong Kong Island was in progress. Planning work continued for increased capacity to meet the demand from new developments in Central and Western areas on Hong Kong Island, Kwun Tong, Yau Tong, Tsing Yi, Yuen Long, Tin Shui Wai and the north-western New Territories.
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Detailed design for the two new major treatment works at Tai Po and Ngau Tam Mei was completed and construction work commenced. Detailed design of Sham Tseng Treatment Works Stage II was in progress. Other major design work was concentrated on the provision of additional service reservoirs, pumping stations and water supply networks in Tai Po, Tseung Kwan O, Tsing Yi, Tuen Mun, Yuen Long, Western District, the Mid-Levels and the Central and West Kowloon Reclamations. Work on the permanent water supply system for the new airport at Chek Lap Kok and other developments in North Lantau associated with the Port and Airport Development Strategy was being implemented in stages. The Stage I works, which included submarine and land mains, a water treatment works, three pumping stations, a service reservoir and an aqueduct between Siu Ho Wan and Silver Mine Bay, were completed and commissioned. Other Stage I works to supply the Port Development will be implemented in stages before 2003.
To eliminate the risks associated with chlorine storage, the replacement of gas chlorination plants by on-site hypochlorite generation plants at sea water pumping stations continued. Reprovisioning of Tai Lam Chung Prechlorination House was completed.
Water Accounts and Customer Relations
The number of consumer accounts continued to rise at a rate of about two per cent and the consumer account base expanded to approximately 2.14 million accounts at the end of 1996. The Sewage Services Ordinance came into effect on April 1, 1995. For administrative convenience, sewage charges and water charges are combined into one single bill and the Water Supplies Department acts as an agent to collect general sewage charges on behalf of the Drainage Services Department.
Computer systems were widely employed to provide efficient enquiry services; to handle applications for water supply and change of consumer particulars; and to issue demand notes for water and sewage charges, connection fees and water deposits.
Efforts to promote the autopay service continued, and the number of consumer accounts using autopay for payment of water charges reached 290 500 or about 13.6 per cent of all consumers. The Payment-by-Phone service was also well received and the number of consumer accounts using this service totalled 234 900 at the end of 1996, or about 11 per cent of all consumers.
The Mong Kok Customer Enquiry Centre was relocated to a new, larger office within the same depot compound. An electronic display queuing system was installed. to improve the customer service provided in the new centre. In June, the department announced its vision and mission together with its achievements against performance targets for the past year which showed improvement over those of the previous year in most areas. Most achievement rates were close to, or reached, 100 per cent. New enhanced performance targets were also publicised.
Electricity
The Hongkong Electric Company Limited (HEC) supplies Hong Kong Island and the neighbouring islands of Ap Lei Chau and Lamma; China Light and Power Company Limited (CLP) supplies Kowloon and the New Territories, including Lantau and several outlying islands. The supply to consumers is at 50Hz alternating current while
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the voltage is being upgraded to 220 volts single-phase and 380 volts three-phase from 200 and 346 volts, respectively.
The two supply companies are investor-owned and do not operate on a franchise basis. The government monitors their financial arrangements through mutually- agreed scheme of control agreements. New agreements with CLP and HEC came into effect on October 1, 1993, and January 1, 1994, respectively. Both will last for 15 years. The agreements require each company to seek the approval of the government for certain aspects of their financing plans, including projected tariff levels.
Electricity for HEC's supply areas is supplied from the Lamma Power Station. At the end of 1995, total installed capacity at the Lamma Power Station was 2 955MW including a 350MW unit commissioned in late 1995. The government has also approved the installation by HEC of another 350MW unit at the Lamma Power Station in late 1997.
HEC's transmission system operates at 275kV, 132kV and 66kV and distribution is effected mainly at 11kV and 380 volts. Apart from a small proportion of 132kV overhead transmission lines, all supplies are transmitted and distributed by underground or submarine cables.
The Castle Peak Power Company Limited (CAPCO), which is 60 per cent owned by Exxon Energy Limited and 40 per cent by CLP, supplies electricity to CLP from its Castle Peak 'A' (1 752MW), Castle Peak 'B' (2 708MW) and Penny's Bay (300MW) power stations and two gas turbines at Tsing Yi (150MW), with the total installed capacity being 4 910MW. Tsing Yi 'A' and 'B' Power Stations (1 520MW) were decommissioned in stages over 1994 and 1995.
The government has approved CLP's installation of four 625MW blocks of additional generating capacity, the first two of which will be installed in a new power station at Black Point, Tuen Mun, in 1996 and 1997. The other two 625MW blocks will be split into four 312.5MW units and commissioned in 1998, 1999, 2000 and 2001. All will be fuelled by natural gas piped from the Yacheng 13-1 gas field off Hainan Island in China.
The associated transmission and distribution systems are wholly owned by CLP. Its transmission system operates at 400kV, 132kV and 66kV, and distribution is effected mainly at 33kV, 11kV and 380 volts. CLP has 196 primary and 9 041 secondary sub- stations in its transmission and distribution network.
An extra-high-voltage transmission system at 400kV was completed in 1986 to transmit power from the Castle Peak Stations to the various load centres. Currently it comprises a double-circuit overhead line system encircling the New Territories, underground cables and 11 extra-high-voltage sub-stations. Construction and planning work for reinforcement of the existing system is in progress.
The transmission systems of CLP and HEC are interconnected by a cross-harbour line. This provides emergency back-up and achieves cost savings to consumers through economic energy transfers between the two systems and a reduction in the amount of generating capacity that needs to be kept as spinning reserve against the tripping of other units. The interconnection, commissioned in 1981, currently has a capacity of 720MVA.
CLP's system is also interconnected with that of the Guangdong Electric Power Holding Company (formerly named the Guangdong General Power Company) of
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China and electricity is exported to Guangdong Province. Such sales are made from existing reserve generating capacity and are governed by an agreement with the government, signed in March 1992, under which CLP's consumers receive priority of supply and 80 per cent of the profit from the sales.
CLP has a contract with the China Merchants Steam Navigation Company Limited for the supply of electricity, for 20 years starting from late 1986, to the industrial zone of Shekou and the adjacent Chi Wan area, both in Guangdong. The arrangements, which afford Shekou a reliable electricity supply without subsidy from Hong Kong consumers, is illustrative of the close co-operation on energy matters which has developed on both sides of the border.
In 1985, the Hong Kong Nuclear Investment Company (a wholly-owned subsidiary of CLP) and the Guangdong Nuclear Investment Company (wholly owned by the Chinese Ministry of Nuclear Industry) established the Guangdong Nuclear Power Joint Venture Company, to construct and operate a nuclear power station at Daya Bay in Guangdong. This comprises two 985MW pressurised water reactors which went into commercial operation in February and May 1994, respectively. CLP undertook to buy about 70 per cent of the station's power to meet part of the longer- term demand for electricity in its supply area.
CLP through its affiliated company, the Hong Kong Pumped Storage Development Company Limited, has bought the right to use 50 per cent of the capacity of the Guangzhou Pumped Storage Power Station, at Conghua. The total installed capacity of the current phase is 1200MW. Off-peak electricity from the Castle Peak Stations and Guangdong Nuclear Power Station is used to pump water from a lower reservoir to an upper one. The water is allowed to flow downhill during the day to generate electricity to meet Hong Kong's peak demand.
The Electricity Ordinance, and its subsidiary regulations, set out the standards to be adhered by registered electrical contractors and workers while undertaking electrical wiring work. To be eligible for registration under the ordinance, applicants must possess the necessary experience and qualifications. The government regularly organises examinations for applicants to acquire the necessary qualifications for registration. At the end of December 1996, more than 7 800 electrical contractors and 52 000 workers held valid registration. In 1996, the government conducted 3 580 site inspections to check the safety standards of electrical installations and electrical product supply outlets, and 41 people were prosecuted for contravention of the ordinance.
Legislation to ensure the sale of safe plugs and adaptors came into effect in March 1995. More comprehensive legislation, which provides statutory control over the safety of all household electrical products will come into effect in 1997.
Hong Kong's electricity supply is being upgraded in two phases. Phase 1, covering existing installations inside government buildings, started in August 1990 and was completed in November 1992. Phase 2, covering existing installations in buildings managed by the Housing Authority and those in the private sector, began in January 1993 and will be completed in 1997.
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Gas
Gas is widely used throughout the territory for domestic, commercial and industrial purposes. Two main types of fuel gas are available for general use: Towngas and Liquefied Petroleum Gas (LPG).
Hong Kong has about 1.96 million gas customers. In 1996, Towngas accounted for 70 per cent of the total fuel gas sold in energy terms, and LPG for 30 per cent.
Towngas is manufactured in two plants, one at Tai Po and the other at Ma Tau Kok, both using naphtha as a feedstock. They currently have output capacities of 8.4 and 2.2 million cubic metres per day respectively. The gas is supplied through an integrated distribution system to about 1.16 million customers.
The mains network extends throughout the territory via an 84-kilometre high- pressure pipeline and some 1941-kilometre distribution mains. A further 27 kilometres of high-pressure pipeline is at its final stage of construction for supplying Towngas to Chek Lap Kok and Tung Chung on Lantau Island.
LPG is imported into Hong Kong by sea and stored at five terminals on Tsing Yi before being distributed to approximately 847 000 customers. About 61 per cent of total sales is supplied in cylinders and by 524 distributors operating 765 cylinder wagons.
The government aims to provide designated overnight parking sites for these cylinder wagons. The first one at Tuen Mun was opened in November 1995 and three more sites are being constructed. LPG is also supplied by road tanker to 170 bulk storage installations providing centralised piped gas supplies.
Since 1982, the government has encouraged the installation of a piped gas supply in new buildings to discourage further growth in the use of LPG cylinders in domestic dwellings. It also began a programme of encouraging the upgrading of sub-standard gas water heaters. The percentage of domestic dwellings now using cylinders fell to less than 31 per cent in 1996; and some 86 041 gas water heaters have been upgraded.
As further means of safeguarding the general public and gas consumers, the Gas Safety Ordinance was introduced on April 1, 1991. This ordinance and its subsidiary regulations cover all aspects of fuel gas importation, manufacture, storage, transport, supply and use of gas. The legislation was amended in 1996 to encompass periodic examination of gasholders, deter damaging of underground gas pipes, improve safety requirements for the maintenance of gas installations and prohibit the importation and sale of certain types of disposable LPG containers.
Since April 1, 1992, all gas supply companies, gas installers and contractors must be registered with the Gas Authority (the Director of Electrical and Mechanical Services) in order to carry out their operations. In 1996, eight gas supply companies, 3 397 gas installers and 437 gas contractors were registered under the scheme.
Natural gas became available in Hong Kong at the end of 1995 exclusively for power generation at the Black Point and Castle Peak power stations. It is imported from the Yacheng 13-1 gas field off Hainan Island in southern China via a 780- kilometre, high-pressure submarine pipeline.
Expressways, fast trains, local railways and major roads cross paths amid the bustle of container terminals at Kwai Chung. The work forms part of the massive projects associated with access to Hong Kong's new international airport at Chek Lap Kok.
SEPANJA JAKOBE RECTES KERESNÉ POCHA (HERE NANES WIZZY RA
5M
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· Tung Chung new town is rapidly taking shape on North Lantau, transforming a small village into a residence for 15 000 people in 1997 and 200 000 by 2011. Most of them will be associated with the new airport at Chek Lap Kok, which can be seen at the top of the picture. BELOW: The Kap Shui Mun bridge and its big brother, the Tsing Ma Bridge, are ahead of schedule for beginning their crucial role of taking passengers and cargo to the new airport.
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Photo courtesy of the Mass Transit Railway Corporation
▲ TOP: The Kap Shui Mun Bridge cables form an elegant pattern against the sun. BOTTOM: The Airport Railway being put together by the Mass Transit Railway Corporation will start operations with an Express fleet of 11 trains, each with seven cars, taking people to Central. A separate service, the Lantau line, will use the same tracks but have different platforms for its initial fleet of 12 trains. A German-Spanish joint venture is building the trains.
▲ This massive hole forms the
ventilation shaft for the Central Terminal of the Airport Railway, which will whisk travellers from the new airport at Chek Lap Kok along 34 kilometres to Tsing Yi, West Kowloon and the Central
District in a little over 20 minutes.
RIGHT: Workers manoeuvre steel rods into place on the ventilator project.
15 TRANSPORT
DENSE urban development, the growth of new towns and sustained activity continue to place heavy demands on Hong Kong's transport system. Careful co-ordination and management are needed to ensure the smooth and efficient movement of people and goods. This involves a programme to improve the road network, expansion of public transport and measures to achieve more economic use of the limited road capacity. Against this background, the Railway Development Strategy was announced in December 1994.
The government is pressing ahead with the planning of railway projects the strategy recommends for priority implementation. It is examining a proposal from Kowloon- Canton Railway Corporation to build the Western Corridor Railway from the border to West Kowloon, and one from the Mass Transit Railway Corporation to extend its line to Tseung Kwan O New Town. It is also studying a third priority railway project extending the Kowloon-Canton Railway from Hung Hom to Tsim Sha Tsui and building a new line from Ma On Shan to Tai Wai.
A total of $26 billion will be spent on new roads up to the year 2001. These projects include improvements to Castle Peak Road, Sha Tau Kok Road and Hiram's Highway, the Ting Kau Bridge, the Hung Hom Bypass and Princess Margaret Road Link, the Duplicate Tsing Yi South Bridge and road projects under the Airport Core Programme.
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Good progress has been made on building major transport links between the new airport at Chek Lap Kok and the urban area. The Tsing Ma Control Area 17-kilometre highway system with four bridges, a tunnel and expressways linking the urban area and the new airport will go into operation by mid-1997. The area will be covered by a single traffic control and surveillance system and an operator has been appointed to manage, operate and maintain the area.
To ease traffic congestion and to give priority to public transport on roads, the government commissioned a consultancy study in 1996 to explore the feasibility of introducing bus-only lanes on a territory-wide basis. The government is mindful of the need to improve safety on the roads and will implement new measures in 1997 to require the installation of additional safety devices on buses and light buses, the provision of escorts on school buses, and a new colour scheme for private light buses for carrying school children to enhance their conspicuousness.
The effectiveness of the drink-driving legislation introduced in 1995 continues to be monitored. The government reviewed the statutory limits allowed for alcohol concentration in December 1996. Seat belt legislation was revised to require the wearing of rear seat belts, if fitted.
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The expansion of public transport services has continued. The franchise for Citybus Limited was renewed for 10 years, and came into effect on September 1, 1996. New franchises to operate public bus services for North Lantau and the New Airport were also granted.
As a means of generating funds to improve ferry services, to cover ferry operating losses and to keep ferry fare increases in line with inflation, the Governor in Council has approved in principle a pier-development package that allows Hongkong & Yaumati Ferry Company Limited to undertake commercial development above four new piers in Central District.
The Administrative Framework
The Transport Branch of the Government Secretariat, headed by the Secretary for Transport, is responsible for overall policy formulation, direction and co-ordination of internal transport matters. The Secretary is assisted by the Transport Advisory Committee, which advises the Governor in Council on major transport policies and issues. The committee has 14 appointed members, including the chairman and three government officials, and is supported by a Transport Complaints Unit, which received 13 887 complaint cases on traffic and transport matters in 1996. On local transport matters, the government is advised by the district boards, and their traffic and transport committees.
The Commissioner for Transport, as head of the Transport Department, is the authority for administering the Road Traffic Ordinance and legislation regulating public transport operations other than railways. Her responsibilities cover strategic transport planning, road traffic management, government road tunnels, carparks and metered parking spaces, and the regulation of internal roads and waterborne public transport. The Commissioner for Transport is also the authority for the licensing of drivers and the registration, licensing and inspection of vehicles.
While the Police Force is the principal agency for enforcing traffic legislation and prosecuting offenders, the Prosecutions Section of the Transport Department handles prosecutions involving safety defects found on buses, disqualifications under the Driving Offence Points System, and breaches of vehicle safety regulations and government tunnel regulations. In 1996, the section prosecuted 44 cases in respect of buses, 4912 cases for which disqualification was sought under the Driving Offence Points System, and 1 299 prosecutions in respect of breaches of tunnel and other regulations.
A Transport Tribunal, with chairman and members all appointed from the public and set up under the Road Traffic Ordinance, provides the public with a channel of appeal against decisions made by the Commissioner for Transport in respect of the registration and licensing of vehicles, the issue of hire car permits and passenger service licences, and designation of car-testing centres.
The Transport Department also operates an Emergency Transport Co-ordination Centre which provides liaison with public transport operators on traffic and transport arrangements during serious traffic and transport disruptions, rainstorms and typhoons. The centre undertook nine operations in 1996.
The Director of Highways heads the Highways Department, which is responsible for designing and building all highways, their repair and maintenance, and also for studying new railway proposals.
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Planning
The Third Comprehensive Transport Study will commence in March 1997 for completion in about 18 months. The study will provide updated traffic forecasts and recommend a transport infrastructure development programme up to 2011.
On completion of the Parking Demand Study in December 1995, a Working Group on Parking considered its recommendations and formulated a parking action plan. The Freight Transport Study, which was completed in 1994, put forward recommendations to improve the efficiency and operation of the freight transport industry. After public consultation, a Working Group on freight transport considered the recommendations and formulated an action plan.
In June 1995, the Transport Department commissioned consultants to carry out a Transport Study for the New Airport (TRANSNA). The primary objective is to develop a strategy for the provision of public transport services to the new airport and Lantau for the period from 1997 to 2006. TRANSNA's final report was completed in December 1996. A Comprehensive Traffic Review for East Kowloon is being carried out to identify and recommend solutions to traffic problems in the area.
Cross-Border Traffic
Sha Tau Kok, Man Kam To and Lok Ma Chau are the three road crossing points between Hong Kong and China and together can handle about 32 000 vehicles per day. The Lok Ma Chau crossing started operating 24 hours a day on November 3, 1994. The Sha Tau Kok and Man Kam To crossings open at 7 am each day and close at 6 pm and 10 pm, respectively.
Cross-border vehicular traffic increased by about 5 per cent during the year, compared with 1995. The increase was registered mainly at Lok Ma Chau. The average daily traffic figures at the three crossing points in 1996 were about 1 900, 8 900 and 13 500 at Sha Tau Kok, Man Kam To and Lok Ma Chau, respectively. Goods vehicles accounted for 91 per cent of the traffic, reflecting the rapid growth in trade and industrial links with China. At the end of the year, 41 companies operated 81 tourist coach services across the border. Plans are being made to increase the number of channels at Lok Ma Chau for processing vehicles and passengers. In the longer term, this crossing point will be expanded.
The Kowloon-Canton Railway continued to play an important role in carrying freight and passenger traffic between Hong Kong and China. There were some 1.2 million and 800 000 tonnes of inbound and outbound goods respectively in 1996 compared with 1.8 million and 900 000 tonnes in 1995. There are six freight yards, at Kowloon, Ho Man Tin, Mong Kok, Sha Tin, Fo Tan and Lo Wu. Freight trains are hauled by a fleet of 12 diesel locomotives. Some 48 million passengers crossed the border by rail at Lo Wu in 1996 compared with 43 million the previous year.
Ferry services between Hong Kong and China carried 7 million passengers in 1996, the same as in 1995. At year's end, nine companies offered a choice of 28 routes.
The opening of the Shenzhen Airport in October 1991 provided a further impetus to the growth of cross-border traffic, and coach and ferry services between the airport and Hong Kong. The completion of Phase I of the Guangzhou-Shenzhen-Zhuhai Superhighway linking Guangzhou to Shenzhen in 1994 led to a further increase in cross-border traffic, particularly through Lok Ma Chau.
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Road Network
Hong Kong's roads have one of the highest vehicle densities in the world. At the end of 1996, there were 467 833 licensed vehicles and about 1 743 kilometres of roads - 420 on Hong Kong Island, 400 in Kowloon and 923 in the New Territories representing 268 vehicles per kilometre of road. This high vehicle density, combined with the difficult terrain and dense building development, poses a constant challenge to transport planning, road construction and maintenance. There are eight major road tunnels, more than 850 flyovers and bridges, 490 footbridges and 300 subways to assist the mobility of vehicles and people.
To cope with increasing transport demands, the Highways Department runs an extensive road construction programme. About 70 road projects are under construction and another 40 are being planned.
The department's budget for the financial year ending March 1997 totals $7,041 million $6,328 million for major highway construction, and $713 million for road and public lighting maintenance work.
Strategic Road Network
The spine of the strategic road network is Route 1, which runs from Aberdeen on the southern shore of Hong Kong Island, through the Aberdeen Tunnel, Cross-Harbour Tunnel, Kowloon peninsula, Lion Rock Tunnel, Tolo Highway, Fanling Highway and San Tin Highway to the Lok Ma Chau border crossing in the northern part of the New Territories.
On Hong Kong Island, Route 8 runs along the northern shore from the Cross- Harbour Tunnel, via the Island Eastern Corridor, to Shau Kei Wan and Chai Wan in the east.
Route 7 stretches westwards from the Cross-Harbour Tunnel along the northern shore, via Gloucester Road, Harcourt Road and Connaught Road, to Hill Road at Kennedy Town.
On the mainland, Route 2 runs from the Kowloon Bay Reclamation, through the Airport Tunnel, via the East and West Kowloon corridors, Tsuen Wan Road, Tuen Mun Road and Yuen Long Highway, to the junction of San Tin Highway and San Shum Road.
Route 4 runs from Ching Cheung Road, Lung Cheung Road and Kwun Tong to Tseung Kwan O through the Tseung Kwan O Tunnel.
Route 5, another strategic road, is a seven-kilometre two-way trunk road connecting Sha Tin with Tsuen Wan, via Cheung Pei Shan Road and the Shing Mun Tunnels. It forms part of the New Territories Circular Road System.
Route 6 covers the Eastern Harbour Crossing, Kwun Tong Bypass, Tate's Cairn Tunnel and the approach road linking Tate's Cairn Tunnel to the Tolo Highway.
Improvements to Major Road Networks
To cater for the traffic demand between Western District and the upgraded Connaught Road, the construction of Belcher Bay Link started in May 1993 for completion in January 1998. It will be a dual carriageway on the new reclamation at Belcher Bay.
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To provide a direct access between Kennedy Town and Pok Fu Lam Road, the construction of Smithfield Extension started in February 1995 for completion in June 1997.
Construction of the Yau Ma Tei Section of the West Kowloon Corridor commenced in phases from mid-1992 to improve traffic in Mong Kok and Yau Ma Tei districts. The first phase, which included an extension along Ferry Street and a 700-metre flyover along Ferry Street and Tong Mi Road,- was completed in January 1995. The second phase, construction of an associated footbridge and subway system, was completed in September 1996.
The Lung Cheung Road and Ching Cheung Road Improvements started in July 1994 for completion in October 1997. The works include the widening of Ching Cheung Road and the section of Lung Cheung Road between Ching Cheung Road and Lion Rock Tunnel Road from dual two-lane to dual three-lane. When completed, it will improve the Route 4 link between East Kowloon and the new airport.
The construction of Hung Hom Bypass and the Princess Margaret Road Link started in March 1996 for completion in early 1999. It will be an elevated highway built on Hung Hom Bay Reclamation, including a 1.3-kilometre Hung Hom Bypass from Salisbury Road to Hung Hom Road and a 1.2-kilometre Princess Margaret Road Link connecting the Hung Hom Bypass to Princess Margaret Road.
To improve cross-border traffic and access to the north-western New Territories, the construction of the Country Park Section of Route 3 started in May 1995 under a 'Build, Operate and Transfer' franchise for completion in mid-1998. It will be a dual three-lane carriageway connecting Ting Kau in Tsuen Wan with Au Tau in Yuen Long.
To improve traffic flow, construction of additional climbing lanes on the Kowloon- bound carriageway of Tuen Mun Road started in May 1994. These climbing lanes, with a total length of 8.5 kilometres at Sam Shing Hui, So Kwun Wat, Tai Lam and Ting Kau, were completed in stages in July and August 1996 except for a section at Tai Lam between Brother's Point and Ka Loon Tsuen. A consultancy study is being done on the feasibility of completing the remaining works.
New Airport Access
Work is progressing well on all major highway projects related to the new airport at Chek Lap Kok and developments along the north-western shore of Lantau. They include the Western Harbour Crossing, the West Kowloon Expressway, the Kwai Chung and Tsing Yi sections of Route 3, the Lantau Link and the North Lantau Expressway.
The Airport Core Programme also includes a rail link, which will provide a fast and efficient train service to the new airport and a domestic service to relieve congestion on the Nathan Road Corridor of the Mass Transit Railway. The rail link will also serve new developments on West Kowloon Reclamation and in Tung Chung new
town.
Environmental Impact of Road Construction
At the planning stage, the Highways Department carefully appraises the environmental impact of new road projects. Where practical, measures such as 237
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landscaping works, artificial contouring of surrounding hillsides and installation of noise barriers are considered.
Where necessary, consideration is also given to providing air-conditioning units and double-glazing in domestic premises where noise levels cannot be brought within the required standard by other means.
Road Opening Works
Besides serving as carriageways for vehicles and pedestrians, the roads also accommodate various utility services, such as water and gas mains, sewers, and electricity and telephone cables. To cope with the increasing demand for utility services and maintenance work, utility companies often have to excavate the carriageways and footpaths to lay more pipes, cables and ducts, and to carry out repair work. On average, there were about 162 new road openings each day in 1996. Road openings are co-ordinated and controlled by the Highways Department through a permit system, under which utility companies are required to carry out work to a required standard and within a time limit.
To co-ordinate work more effectively and to minimise traffic disruption, the department holds monthly Road Opening Co-ordinating Committee meetings with the utility companies, the police and the Transport Department. A computerised utility management system is being developed to improve co-ordination and minimise disturbance to road users. The system is expected to be operable by the end of 1997.
Tunnels
The five government-owned tunnels, namely, the Lion Rock, Aberdeen, Airport, Tseung Kwan O and Shing Mun, are managed and operated by private companies under management contracts. The tolls are controlled by the government.
The Lion Rock Tunnel, linking Kowloon and Sha Tin, began single-tube operation in 1967, with a second tube added in 1978. The 1.4-kilometre tunnel is the most heavily used government tunnel, with 93 000 vehicles daily. The toll was $6 in 1996.
The Aberdeen Tunnel, opened in 1982, links the north and south sides of Hong Kong Island. It measures 1.9 kilometres and was used by 60 000 vehicles daily in 1996. The toll was $5.
The toll-free Airport Tunnel provides direct access from Hung Hom to Hong Kong International Airport, and passes underneath the airport runway to Kowloon Bay. Opened in 1982, the 1.3-kilometre tunnel was used by 54 000 vehicles daily in 1996.
The Shing Mun Tunnels between Sha Tin and Tsuen Wan were opened in 1990 and measure 2.6 kilometres. An average of 52 000 vehicles a day paid $5 each to use it in 1996.
The 900-metre Tseung Kwan O Tunnel, opened in 1990, links Kowloon and Tseung Kwan O New Town. It was used by 41 000 vehicles daily in 1996. The toll was $3.
The Cross-Harbour Tunnel, the Eastern Harbour Crossing and the Tate's Cairn Tunnel were built, and the Western Harbour Crossing is being built, by the private sector under 'Build, Operate and Transfer' franchises.
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The 1.9-kilometre Cross-Harbour Tunnel connects Causeway Bay on Hong Kong Island and Hung Hom in Kowloon. It was opened in 1972. Used by a daily average of 124 000 vehicles in 1996, it is one of the world's busiest four-lane road tunnels. The tolls, which included a government passage tax, varied from $4 to $30 per vehicle.
The Eastern Harbour Crossing is Hong Kong's second cross-harbour road tunnel. Opened in 1989, it links Quarry Bay on Hong Kong Island and Cha Kwo Ling in Kowloon. A daily average of 88 000 vehicles used the 2-kilometre tunnel in 1996. The tolls ranged from $5 to $30. On the Kowloon side, the Eastern Harbour Crossing is connected by elevated roads to the Kowloon portal of the Tate's Cairn Tunnel.
The Tate's Cairn Tunnel was opened to traffic in 1991, providing an additional direct road link between the north-eastern New Territories and Kowloon. About four kilometres long, it is the longest road tunnel in the territory. It was used by an average of 74 000 vehicles daily in 1996, paying $6 to $15 each.
The Western Harbour Crossing, when it opens in April 1997, will be the first six- lane road tunnel in Hong Kong. It will link Sai Ying Pun on Hong Kong Island and the West Kowloon Reclamation near Yau Ma Tei. The construction of the two- kilometre tunnel and the interchanges at both ends, which commenced in August 1993, is costing about $7.5 billion. Its capacity of 180 000 vehicles per day is about 50 per cent higher than that of either of the existing cross-harbour road tunnels.
An automatic toll collection system was installed at the Cross-Harbour and Aberdeen tunnels in August 1993, the Lion Rock Tunnel in August 1994, the Eastern Harbour Crossing in September 1995 and the Tate's Cairn Tunnel in May 1996, enabling motorists to drive through designated toll booths without stopping.
Traffic Control and Surveillance
A continuing programme of traffic control measures is being implemented to improve traffic flows. At the end of the year, the territory had 1 300 signalised junctions, 329 on Hong Kong Island, 481 in Kowloon and 490 in the New Territories.
On Hong Kong Island, the signalised junctions along the northern shore are under the control of the Hong Kong Area Traffic Control (ATC) system, which is being expanded to Southern District. By the end of 1996, 299 junctions on the island were under ATC and 39 closed circuit television (CCTV) cameras were in use for traffic surveillance.
Renewal of the Kowloon ATC system, which covered 481 signalised junctions, was completed. Work for the expansion of the CCTV system is in progress. By early 1997, there will be 62 cameras monitoring the traffic conditions in the peninsula.
In the New Territories, the ATC and CCTV systems for Tsuen Wan and Kwai Tsing were completed in 1996. The new ATC system controls 118 signalised junctions and monitors the traffic condition there through 22 CCTV cameras. Work on the ATC system in Sha Tin, covering 90 junctions, will commence in early 1997 for completion in early 1998. Detailed design for 19 cameras in the Sha Tin CCTV system was completed and work will start in mid-1997. Planning for the expansion of ATC and CCTV systems to other new towns is continuing.
The CCTV system of 19 cameras on Tuen Mun Road has proved very effective in monitoring traffic flow and identifying incidents. Similar CCTV systems are being
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planned for the West Kowloon Expressway, North Lantau Expressway and part of the Tolo Highway.
The Tsing Ma Control Area, an expressway network comprising some 17 kilometres of bridges, tunnels and expressways providing the only road access to Chek Lap Kok Airport, will be equipped with the most extensive traffic control and surveillance (TCS) system ever introduced in Hong Kong. Scheduled for completion in May 1997, the TCS system will provide a high degree of automation to regulate traffic flow and to provide useful information to motorists under numerous operating scenarios.
These include accidents, vehicle breakdowns, roadworks, and adverse weather conditions. Elaborate surveillance and control gear is available for the system's disposal, including CCTV, automatic incident detectors, environmental sensors, emergency telephones, changeable regulatory and advisory signs, variable message signs, lane control signals and radio links.
Parking
The management and operation of on-street metered parking spaces is performed by a private operator under a management contract. On-street parking is provided where traffic conditions permit. At the end of the year, there were 13 900 parking spaces in the territory, with meter charging mainly between 8 am and midnight from Mondays to Saturdays.
Meter charging in areas of high demand has been extended to include Sundays and public holidays to facilitate a better turnover of parking spaces. The maximum meter charge was $2 per 15 minutes.
The government owns 14 multi-storey carparks which provide a total of 8 050 parking spaces. They are operated and managed by two private operators.
Off-street public parking is also provided by the Civil Aviation Department at the Hong Kong International Airport, the Housing Department in its housing estates and the KCRC at its terminus in Hung Hom. Private sector multi-storey and open-air public carparks in commercial/residential buildings and open-air lots provide more than 145 000 parking spaces.
Central-Mid-Levels Escalator and Walkway System
This covered system was opened in October 1993. Starting from two footbridges over Des Voeux Road, Central, it passes through Central Market and over the narrow streets in Central and ends at Conduit Road. Managed by a private operator under a management contract, the system was used by an average of 34 000 people daily in 1996.
Licensing
By the end of the year, Hong Kong had 467 833 licensed vehicles in all classes, representing an increase of 1.97 per cent over 1995.
New private car registrations fell 4.53 per cent, from 23 257 in 1995 to 22 203 in 1996. This brought the number of licensed private cars to 293 381 in December, an increase of 2.77 per cent over the past year.
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Under the Old Cars Scrapping Incentive Scheme which was implemented in June 1996, the owner of a private vehicle 10 or more years old can enjoy a concession on first registration tax if he scraps his old car and replaces it with a new one. The scheme aims to help improve air quality by reducing the number of old vehicles on the road.
Registered goods vehicles numbered 134 419 in December, which was 1.39 per cent less than the 136 316 in 1995. Of these, 92 900 were light goods vehicles, a decrease of 3.3 per cent from 1995.
Vehicle examination aims to upgrade the safety of vehicles through improved design requirements and correct maintenance. The private car inspection scheme is carried out at 24 designated car testing centres. Compulsory annual inspection applies to all public service vehicles and goods vehicles. The coverage of vehicle examination of trailers was expanded on April 1, 1996, to require trailers manufactured in 1986 and earlier to be inspected before annual licence renewal and again on December 1, 1996, in respect of trailers made in 1989 or earlier.
There were 1 095 639 licensed drivers at the end of 1996, an increase of 2.2 per cent over 1995. The average number of new learner-drivers fell from 4 865 per month in 1995 to 4 501 per month in 1996.
Since the introduction of the Driving Offence Points System in August 1984, 36 582 drivers have been disqualified, 376 649 notices have been served and 452 588 drivers have incurred penalty points for committing offences under the Road Traffic (Driving Offence Points) Ordinance. The figures for 1996 were 4912, 52 309 and 28 461 respectively. New scheduled offences relating to drink-driving were introduced in December 1995.
A performance pledge scheme for licensing services has been in effect since December 1992. It covers most licensing and vehicle examination services. With effect from December 1996, the scheme was further extended to cover government tunnel services. Two active customer liaison groups, with a total of 36 members, enabled direct public participation in advising the Transport Department of customers' requirements and in gauging public opinions on services provided.
Road Safety
Injuries resulted from 14 345 traffic accidents in 1996, of which 252 were fatal and 3 066 serious. This was a decrease of 3 per cent compared with the 14 812 accidents in 1995, of which 247 were fatal and 3 243 serious. In-depth investigations were carried out at 194 traffic accident blackspots to identify accident causes. Remedial accident prevention measures were recommended at 148 of these locations.
Accident records are regularly updated, using the microcomputer-based traffic accident data system installed in 1991. The updated accident database provides a basis for traffic accident blackspot analysis and road safety strategy formulation. (Accident statistics are at Appendix 42.)
Thirteen red-light camera systems were installed at signalised Light Rail Transit road junctions in Tuen Mun, Yuen Long and Tin Shui Wai in September 1996 to deter motorists from disobeying traffic signals. For years, driving too close to the vehicle in front has been the dominant contributory factor towards traffic accidents.
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To help drivers judge a safe driving distance, a chevron scheme was put on trial in July 1996 for one year. It will be assessed in 1997.
The seat belt legislation has been revised. From June 1, 1996, rear seat passengers in private cars are required to wear seat belts if fitted. New legislation was also passed in the same month requiring seat belts to be fitted to the driver's seat of all buses.
The Transport Department conducted a comprehensive review with a public opinion survey on school bus safety. A set of improvement measures were formulated. It included the provision of an escort on school buses carrying primary and kindergarten pupils, tightening of licensing conditions for nanny vans, installation of warning devices at doors and a public announcement system, a new colour scheme for nanny vans to make them more conspicuous, and additional warning signs at the rear of buses. In addition, the department will encourage the setting up of School Bus Service Committees in schools and establishing designated school bus stops in public housing estates.
Road safety campaigns continue to play an important role in reducing traffic accidents. The major theme in 1996 was 'pedestrian safety'. Posters and radio and television announcements were produced to advise the public to fit and wear rear seat belts in private cars. The folly of drink-driving was continuously publicised throughout the year.
At year's end, 246 student road safety patrol teams of the Road Safety Association and 316 school staff crossing patrols served in 553 schools to ensure children's safety on their way to and from school. The Road Safety Council, an advisory body, continues to co-ordinate all road safety matters in the territory.
Public Transport
Rail, ferry, bus and other transport services offer Hong Kong commuters a good range of choices at reasonable fares and different levels of comfort, speed and convenience.
Railways
The five rail systems include a heavily-utilised mass transit system, a busy suburban railway, a modern light railway, a traditional street tramway and the Peak funicular railway. The first three rail systems are operated by public corporations, wholly- owned by the government. Private operators own the others.
Mass Transit Railway
The Mass Transit Railway Corporation operates a three-line metro system comprising 43.2 route-kilometres with 38 stations, served by a fleet of 759 cars operating in eight-car trains. The system was opened in stages between October 1979 and August 1989. Patronage increased slightly during the year and by the year's end, the railway was carrying 2.4 million passengers a day. It is one of the busiest underground railways in the world. Adult fares ranged from $4 to $12.50 per trip according to distances travelled.
Construction of the Airport Railway is progressing to programme. When opened for traffic in mid-1998, it will have a dedicated express service linking the new airport at Chek Lap Kok to Hong Kong Station at Central; and a separate domestic service between Lantau Island and Central, with stations at Tung Chung, Tsing Yi, Lai
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King, Tai Kok Tsui, Kowloon and Central. The domestic service will interchange with the Tsuen Wan Line of the existing MTR system at Lai King and with the Island Line at Hong Kong Station, bringing relief to the Mass Transit Railway Nathan Road Corridor.
Kowloon-Canton Railway
The Kowloon-Canton Railway started operation in 1910 and was double-tracked and electrified in the early 1980s. Operation of the system, formerly run by a government department, was vested in the Kowloon-Canton Railway Corporation (KCRC) in 1982.
The 34-kilometre railway provides a suburban service to the new towns in the north-eastern New Territories, a freight service to and from China, and passenger services to and from Changping/Guangzhou and Foshan/Zhaoqing. The suburban service has grown substantially since electrification, and in 1996, the railway, with 13 stations, handled 675 000 passenger journeys daily. Passenger traffic was carried in a fleet of 351 cars, operated in train formations of 12 cars. Ordinary adult fares ranged from $3.50 to $8.50.
In 1996, the KCRC continued its effort to improve its facilities by upgrading signal systems, renovating the Kowloon Station at Hung Hom, redeveloping workshops and depots and building noise barriers at selected locations along the railway.
Light Rail Transit
The KCRC also operates the Light Rail Transit (LRT) system in the north-western New Territories in Tuen Mun, Yuen Long and Tin Shui Wai. The system began operation in 1988. With the commissioning of its Tin Shui Wai Phase III extension in March 1995, the system route length is now 32 kilometres with eight routes, 57 stops and a fleet of 99 cars, either operating singly or in pairs.
The LRT operates zonal fare and provides free transfer from one route to another within zones and to and from stations by feeder buses. Ordinary adult fares range from $3.50 to $5.20. At the end of the year, the LRT and its feeder and auxiliary buses carried about 379 000 passengers per day.
Trams
Electric trams have operated on Hong Kong Island since 1904. The Hongkong Tramways Limited has six overlapping services, using 13 kilometres of double track along the north shore of Hong Kong Island between Kennedy Town and Shau Kei Wan, and nearly three kilometres of single track around Happy Valley.
The company's 163 trams, including two open-balcony trams for tourists and private hire, make up the only fully double-decker tram fleet in the world. The trams carried an average of 294 552 boardings daily in 1996. Fares were $1.20 for adults and 60 cents for children and senior citizens aged 65 or above.
Funicular Rail
Hong Kong's other 'tramway' is a cable-hauled funicular railway operated by the Peak Tramways Company Limited from Central to The Peak. The 1.4-kilometre line began operation in 1888 and was modernised in 1989. It climbs 373 metres on gradients as steep as one-in-two. The line serves an average of 12 058 passengers a 243
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day, mostly sightseers and some residents in The Peak. One-way fares for adults and children were $15 and $4 respectively.
Ferries
Ferries are essential for travelling to Hong Kong's outlying islands and provide an important link to the new towns in the north-western New Territories. In the inner harbour, they are a supplementary mode of transport to cross-harbour buses and the Mass Transit Railway. Existing services are provided largely by two franchised operators the Star Ferry Company Limited and the Hongkong & Yaumati Ferry Company Limited (HYF).
The Star Ferry operated 12 vessels across the harbour and carried 96 500 passengers on its three routes daily during the year. Fares ranged from $1.70 to $2.50. Passengers aged 65 and above can enjoy free travel on all Star Ferry services.
HYF owns 83 vessels and operates 24 ferry routes, including passenger and vehicular services and chartered services. In 1996, the company carried 90 000 passengers and 1700 vehicles daily. Fares ranged from $4.40 to $30. Elderly passengers aged 65 or above can enjoy concessionary fares, set at the same level as children's fares, on all ferry services except the deluxe class.
A further 19 other ferry services were operated by eight licensed operators, including the service to Discovery Bay on Lantau. These were supplemented by kaitos, or local village ferry services, which were licensed to serve remote coastal settlements. At the end of the year, 88 kaitos were in operation.
Road Passenger Transport
Road passenger transport accounted for two-thirds of all public transport journeys. Of the public transport journeys made by road, over half were on franchised buses, and the remainder on green minibuses, public light buses, taxis and non-franchised buses.
Franchised Buses
The standard and capacity of franchised bus services continued to improve through effective planning and co-ordination. In 1996, the four franchised companies carried 3.66 million passengers daily on a network of 464 routes. To meet the demand of the new town at Tung Chung and new airport at Chek Lap Kok, franchises to operate a total of 25 new routes were awarded in 1996 to Long Win Holdings Ltd and Citybus Ltd. The first batch of these new routes will come into operation by June 1997.
The largest operator is the Kowloon Motor Bus Company (1933) Limited (KMB). It runs 300 bus routes in Kowloon and the New Territories; 37 cross-harbour routes jointly with the China Motor Bus Company (CMB); 10 cross-harbour routes with Citybus Limited and seven cross-harbour routes of its own. KMB also provides 'Airbus' services to and from the airport, operating three routes to Hong Kong Island and two within Kowloon.
The KMB fleet at the end of the year comprised 3 597 registered vehicles, with 2 363 double-decker conventional buses, and 949 air-conditioned double-decker and 285 single-decker buses. Of these, two were 'super' single-deck low-floor buses with provision for wheelchair passengers.
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KMB made 1032 million passenger trips and covered 285 million kilometres in 1996. Its current franchise extends until August 31, 1997. Fares ranged from $1.10 to $23.60 for non air-conditioned services, and from $2.50 to $32 for air-conditioned services. Passengers aged 65 and over are entitled to concessionary fares on every KMB route, except for the Airbus services.
To relieve peak-hour congestion on the MTR along Nathan Road Corridor, KMB during the year operated a total of 27 air-conditioned bus routes providing services mainly in the morning peak hours on weekdays from the New Territories and North Kowloon to South Kowloon and Hong Kong Island. These services, run jointly with CMB or Citybus, helped keep the MTR passenger flows along Nathan Road at acceptable and safe levels.
Bus services on Hong Kong Island are provided by CMB and Citybus. CMB operates 85 routes, 38 of which cross the harbour to Kowloon and the New Territories. It was granted a new three-year franchise from September 1, 1995.
In April 1996, CMB began its first all-night service on Hong Kong Island, Route N8, plying between Siu Sai Wan and Wan Chai Ferry Pier. At the end of 1996, CMB's registered fleet comprised 825 double-deckers and 28 single-deckers, of which 141 double-deckers and 28 single-deckers were air-conditioned. They made 179.2 million passenger trips and travelled 44.5 million kilometres during the year. Fares ranged from $2.20 to $32. Concessionary fares are offered to passengers aged 65 and over on all CMB routes, except for airport services.
Citybus started its first franchised service, Route 12A, in September 1991. It took over from CMB the operation of 26 routes and 14 routes on Hong Kong Island in September 1993 and September 1995 respectively. The company now operates 58 routes on Hong Kong Island. Of these, 10 are cross-harbour routes jointly operated with KMB. Citybus was granted a 10-year franchise from September 1, 1996.
At the end of the year, Citybus had a registered fleet of 375 double-deckers, 30 single-deckers and two single-deck low-floor buses, which were all air-conditioned. Fares ranged from $2.20 to $32. Concessionary fares were offered to passengers aged 60 and over on Hong Kong Island routes, except night bus and recreation routes; and to passengers aged 65 or over for cross-harbour routes. The company's bus services made 120 million passenger trips and travelled 25 million kilometres during the year.
The fourth franchised bus operator is the New Lantao Bus Co (1973) Ltd (NLB) which provides bus services on Lantau Island. At the end of 1996, NLB operated nine routes with a registered fleet of 69 vehicles. During the year, it made 5.23 million passenger trips and travelled 2.75 million kilometres.
Bus-only Lanes
Existing bus-only lanes are mostly localised, and do not facilitate the movement of buses between districts and/or regions. As a result, buses still suffer significant delays due to traffic congestion in major inter-district traffic corridors.
The Transport Department commissioned a 17-month consultancy study in August 1996 to investigate and design inter-district bus-only lanes for six corridors covering major commuter traffic between homes and work/school places, and to implement one of them as focus scheme in mid-1997. These inter-district bus-only lanes are
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expected to shorten bus journey times, rendering their services more reliable and attracting more commuters to use buses instead of private cars, which will in turn alleviate traffic congestion.
Minibuses
Hong Kong's minibuses are licensed to carry a maximum of 16 seated passengers. There were 6 831 minibuses in 1996. Of these, 4 350 were public light buses (PLB), and 2 481 private light buses. Private light buses are authorised only to carry group passengers and may not collect separate fares.
There are two types of PLBs: 'green' and 'red' minibuses whose roofs are coloured accordingly. Their operation is regulated by a passenger service licence.
Green minibuses provide services according to specified schedules of service which define the routes, fares, vehicle allocation and timetables. There were 1 951 of these operating 274 routes and carrying 88 000 passengers a day in 1996.
Red minibuses operate without specified schedules. They are not required to operate on fixed routes or timetables and are free to set fares. In 1996, 2 399 red minibuses carried about 87 000 passengers daily.
In line with government policy to convert red minibuses to green, more new scheduled routes will be identified. During the year, a green minibus selection exercise was conducted and minibus operators were selected to operate a total of 17 routes.
In September 1995, the Transport Advisory Committee formed a working group to carry out a review on PLB policy with particular regard to the role, regulation and control of green and red minibuses. The review will be completed in early 1997.
Taxis
At the end of 1996, there were 15 249 urban taxis (coloured red), 2 837 New Territories taxis (green) and 40 Lantau taxis (blue), carrying a daily average of 1.1 million, 192 000 and 1 090 passengers respectively.
In April 1994, the Executive Council accepted the Transport Advisory Committee's recommendations to improve the taxi licensing system, fare structure and quality of service. These recommendations were implemented in stages from 1994 to 1996.
To improve taxi services, the government is amending the regulation to require taxi drivers to issue fare receipts to passengers on demand. It is hoped that the requirement can come into effect in 1997.
Non-Franchised Buses
Residents' bus services were introduced in 1982 to give commuters an additional choice of transport modes. Residents' organisations may invite non-franchised bus operators to operate such services under passenger service licences issued by the Transport Department. These services operate in accordance with approved routing, timetable and stopping places; and operate mainly to and from housing estates primarily during peak hours, supplementing services provided by the franchised bus operators. At the end of the year, there were 184 residents' bus services undertaking 94 000 passenger-trips a day and 51 new services were introduced during the year.
Non-franchised bus operators also serve the needs of factory employees, tourists and students on a group-hire basis. At the end of 1996, the licensed fleet of non-
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franchised buses totalled 5 407 vehicles, of which 306 were double-deckers. An increasing proportion of these vehicles were air-conditioned.
Marine Facilities
The Technical Services Division of the Civil Engineering Department inspects and maintains public marine facilities including public piers and landings, public cargo- working areas and light beacon structures. It oversees the maintenance dredging of fairways and mooring buoys.
In 1996, the Port Works Division of the Civil Engineering Department started the construction of the Hei Ling Chau typhoon shelter, the Sok Kwu Wan pier, Gemini Point pier and three public piers at Sai Kung. It also made plans for two typhoon shelters at Siu Lam and Peng Chau.
The Port
The port handles about 90 per cent, by weight, of Hong Kong's trade. In 1996, it remained the world's busiest container port, handling some 13.2 million TEUS (20- foot equivalent units). It also remained one of the busiest in terms of vessel arrivals and departures, and cargo and passenger throughput.
About 437 000 ocean-going and river-trade vessels arrived in Hong Kong during the year. These vessels handled more than 156 million tonnes of cargo and around 21 million international passengers, most of whom were carried on the world's largest fleet of high-speed ferries.
Container handling, vessel arrivals and departures, cargo, and passenger numbers saw a growth rate in 1996 of 5.6 per cent, 1.6 per cent, 0.1 per cent and 1.0 per cent, respectively, compared with 1995. Details of international movements of vessels, passengers and cargo are given at Appendix 40.
Port Administration
The Marine Department administers the port. Its principal function is to ensure safety of navigation and efficiency of shipping activities in the waters of Hong Kong. This is achieved by comprehensive traffic management, harbour patrol, vessel traffic services, provision of mooring buoys and rigorous enforcement of major international maritime conventions.
Advice from users and operators of port facilities is an important element in port administration. The department maintains close liaison with shipping and commercial organisations through a number of advisory committees. These include the Port Development Board, which advises the government on port planning and development; the Shipping Consultative Committee, which advises on the efficient operation of the Hong Kong Shipping Register and Hong Kong's effective participation in the International Maritime Organisation; the Port Operations Committee, which is concerned with the operational needs of the port; the Pilotage Advisory Committee which advises on all matters relating to marine pilotage services; and the Provisional Local Vessel Advisory Committee, which advises on local craft matters.
The Marine Department launched its home page on the Internet in January 1996 to facilitate the flow of information to its clients both in Hong Kong and overseas.
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Apart from information on the port and the Hong Kong Shipping Register, the home page offers information about services and facilities provided by the department, port statistics and Marine Department notices. A Hong Kong Shipping Directory giving information on maritime services companies based in Hong Kong and real-time shipping movements in the port of Hong Kong are also available on the home page.
Vessel Traffic
The Marine Department's Vessel Traffic Centre (VTC) helps ensure a safe and efficient marine traffic flow in the densely-populated waters in and around the port. All ocean-going vessels of 300 gross registered tonnes (GRT) and above must follow VTC directions.
The movements of ocean-going vessels are directly regulated from the VTC through a computer-assisted radar network, a database on ships and VHF (very high frequency) radio telephone communications. The system was enhanced in 1996 to increase the number of targets assigned for collision and navigation channel surveillance. To further improve radar coverage, a new radar station in Mirs Bay is scheduled to open in mid-1998. Such improvement will accommodate anticipated growth in ship movements into the next century.
Harbour Patrol and Local Control Stations
Marine Department launches, in continuous radio contact with the VTC, patrol the main harbour area and its approaches to maintain order and respond to emergencies. In addition to the special team which monitors marine traffic in the central harbour, there is a local traffic control station at Ma Wan dedicated to tightening the surveillance and control of traffic using the Ma Wan Channel. It is envisaged that additional local traffic control stations will be established at Green Island and Kwai Chung in the near future.
Educational Seminars and Marine Safety Campaign
To enhance safety of navigation in Hong Kong waters, educational seminars on marine safety were held in 1996. Shipowners, agents, shipmasters, coxswains and persons-in-charge of vessels were among the many people attracted to the seminars.
Marine Safety Campaigns were conducted to increase public awareness of the importance of safe navigation. Mariners were reminded to strictly follow the International Regulations for Preventing Collisions at Sea while transiting Victoria Harbour.
Pilotage Service
Pilots play an important role in navigation safety by assisting shipmasters who may not be familiar with the port of Hong Kong. Ships of 3 000 GRT or over and gas carriers of any tonnage must engage pilots when moving within the port and its approaches.
The Director of Marine regulates and monitors the pilotage service which is operated by the pilots themselves as a private company. Pilot numbers and the quality of their service are kept under constant review and closely monitored by the Pilotage Advisory Committee, whose membership covers a wide spectrum of port users and shipping interests.
One of the 2.6-km Shing Mun Tunnels receives its nightly cleaning by workers in specialised vehicles. Hong Kong's major road tunnels are partially closed at night for cleaning, a task made necessary by the 580 000-odd vehicles passing through them each day. The scheduled opening of the Western Harbour Crossing in April 1997, will increase the territory's tunnel traffic capacity by 180 000 vehicles daily.
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Hong Kong's fleet of passenger ferries is among the world's largest, most expensive and most diverse as can be seen in this collection.
A catamaran (left) bound for Macau and a triple-deck ferry serving Hong Kong's outlying islands pass each other off Kennedy Town, while a small, older ferry crosses the harbour between them. About 100 large and 90 small ferries made some 70 million passenger journeys during the year.
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A boon to residents and tourists
alike, the 800-metre Central-Mid- Levels Escalators take the strain out of ascending 135 metres from the harbourside to the popular residential district. About 33 000 commuters use the system each day, which operates downhill in the morning rush and up after 10 am.
That is the equivalent of more than
*** 200 double-decker busloads of
commuters each day.
LEFT: Cyclists breeze along a path
beside Tolo Harbour between
Sha Tin and Tai Po, enjoying the territory's best separate route for pedal-powered traffic.
肆
DB153
DB 277
Golf carts are the only private vehicles permitted on the roads at the Discovery Bay residential housing development on Lantau Island. BELOW: A Kowloon-Canton Railway train nears Fanling station. The 34-kilometre railway provides a suburban service to the new towns in the north-eastern New Territories, a freight service to and from China, and passenger services to and from Changping/Guangzhou and Foshan/Zhaoqing. It has 13 stations and handled 675 000 passenger journeys daily in 1996.
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Plans are afoot to relocate the pilot boarding station seawards from Green Island to the outer entrance of the East Lamma Channel in the near future. This relocation, together with certain administrative changes to the institutional arrangements of the service, will help enhance safety of navigation in the busy channel and enable marine pilotage service to meet the needs of the port well into the next century.
Hydrographic Office
Continued growth in the number and size of visiting ships together with the increasing pace of land reclamation in the port areas have demanded accurate nautical charts and more frequent depth surveys. The Hydrographic Office became fully established in late 1996 with the delivery of its second 20-metre survey boat which is equipped with the world's latest hydrographic surveying instrumentation. This is complemented by the comprehensive office-based, fully digital chart production system. Major re-surveys of the port areas continue and the first charts produced and printed in Hong Kong will be available in early 1997.
A continuous radio broadcasting service for the Navstar satellite navigation system (GPS) commenced to provide sub-metre positioning accuracy of the survey launches. To enhance safety of navigation, the government provides this signal to all maritime users wishing to avail themselves of the service, free of charge. The Hydrographic Office is well positioned to fully take over by mid-1997 the nautical services currently provided to the shipping community by the British Admiralty.
Dangerous Goods
The establishment of the Dangerous Goods Information System in early 1997 will provide information for checking and verifying that packaged dangerous goods meet the requirements of the International Maritime Dangerous Goods Code. It also provides information which enables a correct and immediate response in the event of fire or spillage so as to minimise the hazards to the people and environment.
Public Cargo Working Areas
Public cargo working areas on the waterfronts are managed by the Marine Department. In order to maximise the usage of this facility and enhance the efficiency of cargo operations, the department commissioned a financial viability study. In the light of its recommendations and in consultation with the cargo operators, the department is devising a new management system.
Participation in International Shipping Organisations International Maritime Organisation
Hong Kong is an associate member of the International Maritime Organisation and this status will continue after 1997 in accordance with the Sino-British Joint Declaration. The territory has participated in the proceedings of the organisation in developing measures to improve shipping safety and prevent pollution of the sea. In 1996, Hong Kong representatives attended 16 meetings on various subjects.
The Hong Kong administration was particularly active in several current issues, including measures to control air pollution from ships, contamination by transport of aquatic organisms in ballast water, fire protection measures, safety measures for high- speed passenger craft and safety management systems for ships.
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Maritime Search and Rescue
By international agreement, Hong Kong is responsible for co-ordinating all maritime search and rescue operations within Hong Kong waters and the area of the South China Sea north of latitude 10°N and west of longitude 120°E, excluding the immediate coastal waters of neighbouring states.
This is done by the Marine Department, whose Maritime Rescue Co-ordination Centre is manned 24 hours a day by professionally-trained staff. The centre is also the shore-based radio station of the Global Maritime Distress and Safety System. It calls upon fully-equipped vessels and aircraft operated by other government departments to carry out rescue operations. Assistance can also be obtained from nearby ships and other rescue co-ordination centres in the region.
During 1996 the centre responded to 291 incident calls and co-ordinated 98 search and rescue missions concerning ship emergencies 35 of which were medical evacuations.
Port State Control
Many marine casualties and pollution cases can be attributed to the use of substandard ships. This situation could be improved if each port state stepped up inspections of incoming vessels. But this would place a considerable strain on resources. Also, there would be a significant burden on ship operators if their vessels were subject to port state control at all the ports they visit. Accordingly, various Asia-Pacific countries have agreed to share the workload and the information on inspected vessels. They have concluded an Asia-Pacific Regional Memorandum of Understanding on Port State Control. Hong Kong supports this initiative and, in Beijing in April 1994, signed the memorandum accepting regional co-operation on port state control.
During 1996, 475 port state control inspections were conducted on the ocean-going ships visiting Hong Kong to check their compliance with international safety and environmental protection conventions. This represented about 8.8 per cent of the ships visiting Hong Kong. About 96 per cent had deficiencies which had to be made good before they could proceed.
Services in the Port
Container Handling
About 6.6 per cent (or 8.7 million TEUs) of the 13.2 million containers loaded and discharged in 1996 were handled at the Kwai Chung/Stonecutters Island Container Port. Ships at mid-stream mooring buoys and anchorages handled 23 per cent (or 3 million TEUs). This represented a growth rate of 4.8 per cent at the container terminals and 3.4 per cent at the mid-stream facilities, compared with 1995. The eight container terminals at Kwai Chung and on Stonecutters Island are privately owned and operated, with a total of 19 berths for ocean-going vessels.
International Ferry Services
The number of international passengers using the two ferry terminals managed by the Marine Department remained steady over the year, with 7.4 million passengers using the China Ferry Terminal in Tsim Sha Tsui, and 13.3 million using the Macau Ferry Terminal in Sheung Wan. Most of these passengers travelled on the world's largest
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fleet of modern, high-speed passenger ferries, comprising jetfoils and catamarans operating from Hong Kong to Macau and various Chinese ports.
Immigration and Quarantine Services
Immigration and quarantine services, including advance clearance, may be applied for by radio through a ship's agent. The Western Quarantine Anchorage provides these services around the clock, while services are available between 6 am and 6 pm daily at the Eastern Quarantine Anchorage. An immigration anchorage which provides services at Tuen Mun between midnight and 1 pm is a particularly convenient facility for river-trade vessels not intending to enter the central harbour.
Mooring Buoys
The department provides and maintains 62 buoys within the port for ships to work cargo in the stream. The buoys can be booked through the VTC. Most are typhoon moorings, where vessels may remain secured during tropical storms.
Sheltered spaces for laying mooring buoys have decreased since the commencement of the new airport and related reclamations, resulting in many mooring buoys being displaced. Sites for replacement buoys have been identified and will be dredged from 1997 to accommodate ocean-going vessels using the buoys. The reprovisioning and expansion of harbour moorings can be fully implemented with the completion of the current reclamation projects. The total number of mooring buoys will then be brought up to 70.
Bunkering
Bunkering is readily available at commercial wharves and oil terminals, or from a large fleet of private bunkering barges. Fresh water can also be provided alongside berths, or from a private fleet of water boats.
Ship Repair and Dry-Docking
The port has extensive facilities for repairing, dry-docking and slipping all types of vessels of up to 150 000 dead-weight tonnes, including oil rigs. Smaller shipyards are able to build and maintain workboats and pleasure vessels. The Marine Department provides a free inspection and advice service to promote safe working practices in ship repairing, ship-breaking and cargo-handling afloat.
Reception of Marine Wastes
The department provides refuse collection services for ocean-going vessels and picks up refuse floating in the harbour. On average, 4 800 tonnes of refuse are collected annually. Floating refuse remains a nuisance to the general public. Inter- departmental effort has been made to tackle the problem. Refuse collection and scavenging services are being expanded. When the expansion is completed by early 1999, the department will provide much improved territory-wide floating refuse scavenging and ship refuse collection services.
A chemical waste treatment centre on Tsing Yi Island provides reception facilities for oily and chemical wastes from ships, as required under the International Convention for the Prevention of Pollution from Ships.
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Combating Oil Pollution in the Harbour
The Pollution Control Unit of the Marine Department formulates the government's Oil Pollution Contingency Plan and cleans up oil spills. For clean-up jobs, the unit is equipped with a dedicated oil pollution control launch, five tugs capable of dispersing oil spills with chemicals and two oil recovery vessels.
Each year the unit co-ordinates a major oil pollution exercise involving oil companies and government departments such as the Government Flying Service and Civil Aid Services. The latest exercise was held near East Sha Chau, on Hong Kong's western border, in September. The Shenzhen Harbour Superintendency Ad- ministration participated in the exercise.
To ensure proper safety precautions are observed during bunkering operations in the port and to prevent oil spills or fire hazards, the unit conducted 75 inspections of these operations in 1996. The unit also inspected each oil storage installation in the territory about four times in the year. In 1996, there was only one serious oil spill and some minor spills involving less than one cubic metre of oil. The serious oil spill was caused in July by a ship under repair in a dockyard near Lantau Island. With help from the dockyard and other government departments, the unit successfully minimised damage to the environment.
Local Craft
Harbour workboats are essential to the efficient running of the port, and Hong Kong has many of them. More than 1 300 lighters and nearly 400 motorised cargo boats move cargo between ocean-going ships at mooring buoys or anchorages and cargo working areas ashore. They are part of Hong Kong's fleet of 15 000 local craft, including ferries, barges, cargo boats, workboats, fishing boats and pleasure vessels. The Marine Department sets and enforces safety standards for local craft. The Local Craft Review programme is in progress. It is aimed at improving safety of local craft by rationalising the certification, safety and control requirements and clearly redefining the duties and responsibilities of owners, operators and the government. Reclamation projects, such as those at Central and Wan Chai, have increased pressures on local craft navigating in the harbour. Special traffic measures have been adopted to ease the situation so that passenger ferries and other vessels can continue to operate safely from existing piers and landing steps while work proceeds around them. Eventually, the piers and landing steps will be relocated to the new reclamations.
Government Fleet
The government fleet of 354 powered vessels is highly visible in the port. Besides harbour patrol launches, fire boats and police launches, the government has launches for immigration, port health, customs clearance, and surveys of international shipping. The fleet includes lighters, airport rescue craft, pollution control craft, floating clinics and launches for transporting government staff.
The Marine Department designs, procures and maintains all government vessels. It has a rolling 10-year development plan to replace old vessels with new ones as they are needed. In 1996, 18 vessels costing a total of $100 million were delivered to the department and construction contracts for 35 vessels, worth $230 million, were awarded to shipbuilders in Hong Kong and overseas.
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Shipping
Hong Kong is a prominent centre for ship-owning, ship-financing and ship- management. Members of the Hong Kong Shipowners Association control a significant percentage of the world's shipping tonnage. At the end of 1996, their fleet stood at 1006 ocean-going vessels, totalling 32 million GRT. These ships are registered under many flags, but principally with the Hong Kong, Panamanian and Liberian shipping registers.
Besides shipowners, the association's members include banks, classification societies, maritime lawyers, average adjusters, shipbrokers, shipbuilders, insurers and surveyors. This broad-based membership provides an effective forum for liaison on current shipping issues with the government and international organisations.
The Hong Kong Shipping Register
The Hong Kong Shipping Register is administered by the Marine Department. Its supporting legislation embodies international standards for vessel construction, equipment and manning, and is consistent with the territory's obligations under the International Maritime Organisation and International Labour Organisation conventions, including those on safety of life at sea, training and certification of crew, and protection of the marine environment.
The department's surveyors or authorised classification societies undertake statutory world-wide surveys of Hong Kong-registered vessels to ensure that these standards are met. The register had a total fleet of 543 vessels, amounting to 7.9 million GRT, at the end of 1996.
Seafarers
Hong Kong is a centre for employing well-trained seafarers. Some 1 300 Hong Kong officers and ratings serve on foreign-going ships flying flags of more than 18 different maritime administrations. The Marine Department's Mercantile Marine Office registers Hong Kong seafarers and regulates and supervises their engagement on board ships.
The new Merchant Shipping (Seafarers) Ordinance and its 28 sets of Regulations have been enacted to consolidate and amend the extant laws relating to the registration, employment, discipline, health, safety and welfare of Hong Kong seafarers. The new legislation caters to changing needs, particularly in view of the forthcoming change of sovereignty in 1997.
The Marine Department's Examination Section monitors training provided to seafarers and examines candidates for certificates of competency. Measures have been taken to give full effect to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978 and its amendment made in 1995. The Hong Kong Seamen's Training Centre, a modern and well-equipped learning institute operated by the Vocational Training Council, provides training courses for new entrants and in-service training. The falling recruitment of local seafarers nevertheless continues to remain a major concern. The Hong Kong Shipowners Association continues to sponsor cadets and trainees joining the Seamen's Training Centre.
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Civil Aviation
Passenger traffic and cargo throughput at Hong Kong International Airport continued to grow during the year. A total of 29.6 million passengers passed through the terminal, which was 7.8 per cent more than the 27.4 million in 1995.
Some 1.56 million tonnes of cargo, valued at 593.8 billion, were handled, representing an increase of 2.3 per cent when compared with 1.45 million tonnes, valued at $563.8 billion, in 1995. Air transport continues to play an important role in Hong Kong's external trade in that goods carried by air account for about 22 per cent, 33 per cent and 15 per cent, in value terms, of Hong Kong's total imports, exports and re-exports, respectively. The USA remains the major market for exports and re-exports by air, accounting for 33 per cent and 23 per cent, respectively.
An increase of 5.8 per cent in aircraft movements was recorded in 1996, bringing the annual total to 158 797, of which 80 per cent were wide-bodied aircraft. The first Boeing B777 aircraft was entered into the Hong Kong register in May and at the end of the year the total number of these aircraft had risen to four.
Throughout the year, the Civil Aviation Department of Hong Kong maintained a close liaison with the Civil Aviation Administration of China and the Civil Aviation Authority of Macau to ensure a safe and efficient air traffic management in the Pearl River Delta. The air traffic control arrangements among Hong Kong, Macau, Shenzhen and Zhuhai Airports were well co-ordinated.
Preparation for the opening of the new airport at Chek Lap Kok gathered momentum in 1996. The super-structure of the Air Traffic Control Complex building was completed in May. Some 20 new items of air traffic control equipment were being installed and tested. After equipment testing and acceptance, conversion training for air traffic control staff will start in mid-1997.
Improvements to the Airport
Strong growth in air traffic put the airport at Kai Tak under tremendous pressure. Several improvement works were completed and new ones commenced in 1996 with a view to enabling the airport to handle the anticipated traffic growth during Kai Tak's remaining life.
Measures to improve the air traffic control system at Kai Tak were instituted to cope with the increase in air traffic at Kai Tak as well as overflying Hong Kong. During the year, 50 additional air traffic control staff were recruited and trained. A new roster system for controllers was implemented in January. The computers of the radar data processing and flight data processing systems were upgraded in June to increase their capacities. With these enhancements, the runway capacity was increased from 29 to 30 per hour from mid-July.
A computerised check-in counter allocation system was developed and commissioned in October to help airport management staff plan and allocate the limited number of check-in counters more efficiently.
The outsize baggage facilities were modified and expanded to provide four additional check-in counters. The arrival greeting hall was also expanded in July to relieve congestion during peak periods. The departure Immigration Hall was expanded in October to provide a more spacious environment for departing passengers.
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An up-graded information display system was installed in August to provide general airport information as well as flight information. The VIP Suite is being expanded to meet increasing demand and work should be completed in May 1997.
Air Services
Hong Kong is home to three international airlines. Cathay Pacific Airways (CPA), the largest of the three, commenced scheduled passenger services to New York in July. To cope with the increasing scale of its operations, CPA has acquired three A330-300s, five A340-300s and four B777-200s, while all of its L1011s were phased out during the year. At the end of 1996, its fleet comprised seven B747-200s, six B747- 300s, 19 B747-400s, five A340-300s, 10 A330-300s, two A340-200s, four B777-200s, four B747-200Fs and two B747-400Fs - a total of 59 aircraft.
Hong Kong Dragon Airlines (Dragonair) began scheduled passenger services to Kaohsiung and Qingdao in July and August, respectively, and converted its regular passenger charter services to Xian and Chengdu into scheduled services in August. With these additions, the airline now operates scheduled services to 10 cities in China and eight other destinations in Asia, together with non-scheduled passenger services to other cities in the region, mostly in China and Japan.
Dragonair continued to participate in the joint services between Bandar Seri Begawan and Hong Kong operated by Royal Brunei Airlines. With the introduction of an additional A330-300 aircraft, the airline now operates seven A320-200 and four A330-300 aircraft.
AHK Air Hong Kong (AHK) continued to operate scheduled all-cargo services to Manchester, Brussels and Dubai, and non-scheduled cargo services to various destinations in Asia. The airline commenced scheduled all-cargo service to Osaka in March, replacing its Nagoya service, and to Chicago in August. To cope with the increasing scale of its operations, AHK has acquired three B747-200 freighters to replace its original B747-100 and B747-200 freighters.
Seven foreign carriers introduced new scheduled services to Hong Kong during the year Cargolux in January (by converting its cargo charters into scheduled services), Grand International Airways in April, EL AL Israel Airlines (by converting its passenger charters into scheduled services) and Eva Airways in August, China Northwest Airlines in September, and China Northern Airlines and China Southwest Airlines in October. These additions boosted the number of scheduled airlines serving Hong Kong to 66. At the end of the year, these airlines together operated about 1 500 direct round trip services weekly between Hong Kong and over 100 other cities. Besides the scheduled services, an average of 210 non-scheduled flights were operated each week.
Under specific authorisation from the British Government, the Hong Kong Government continues to negotiate air services agreements (ASAS) and hold regular air services consultations with foreign aviation partners, to review and update current bilateral arrangements to cope with changing market circumstances. In 1996, 33 rounds of air services consultations were held with 21 countries. Four more ASAS were signed with the Republic of Korea, Singapore, Italy and India -- bringing the total of such agreements to 15.
In 1996, the Air Transport Licensing Authority granted three licences to Hong Kong airlines: one each to CPA, Dragonair and AHK. At the end of the year, CPA
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held licences to operate scheduled services to 76 cities, Dragonair to 79 cities and AHK to 38 cities.
Aviation Security
The Aviation Security Ordinance, which came into effect in August 1996, provides comprehensive local legislation to implement aviation security-related conventions and agreements promulgated by the International Civil Aviation Organisation. It forms the basis for implementing effective aviation security measures in Hong Kong through the establishment of formal security programmes by government, airport operators, airlines and other concerned parties. These measures establish a clear framework for maintaining Hong Kong's reputation for implementation of aviation security practices to the highest international standard.
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5.2.102
16 THE AIRPORT CORE PROGRAMME
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CONSTRUCTION of the 10 Airport Core Programme (ACP) projects one of the world's largest infrastructure programmes is well advanced. The ACP is designed to provide modern, efficient air transport facilities, together with associated road and rail facilities and new land, that will support the territory's continued expansion well into the next century.
Apart from the new airport, the ACP projects comprise the Airport Railway; five road projects, including tunnels and bridges, stretching from Central District under the harbour, along the western shore of the Kowloon peninsula, across the islands of Tsing Yi and Ma Wan, and along the North Lantau coast; two major land reclamations in West Kowloon and Central District (in addition to the land reclaimed for the new airport); and a new town at Tung Chung, North Lantau.
Excellent progress was made in 1996 on all the 10 ACP projects with 75 per cent of work completed. By the end of the year, 170 major contracts valued at about $95.8 billion had been awarded by the government, the Airport Authority (AA), the Mass Transit Railway Corporation (MTRC) and the Western Harbour Crossing (WHC) franchisee the Western Harbour Tunnel Company Limited (WHTC).
The new airport and the Airport Railway remain on target for opening in April and June 1998 respectively. By June 1997, the five highways projects linking Central District to Tung Chung and the new airport, including the Lantau Link and the WHC, will be open for public use; the two reclamations in West Kowloon and Central District will be ready for development; and population intake at Tung Chung will start.
On May 30, 1996, the British and Chinese sides of the Airport Committee agreed that the AA could immediately proceed with the design and construction of the second runway and associated facilities at the new airport. This makes possible the early commissioning of the second, or northern, runway and will help the new airport cope with the fast-growing air traffic demand. The target commissioning date of the northern runway is late 1998. The AA will finance this non-ACP second runway project by borrowings and there is no need for additional equity from the government.
The Need to Replace Kai Tak
A new airport is urgently needed because the international airport at Kai Tak is already operating at capacity in terms of passenger and cargo throughput. In 1996, more than 29.6 million passengers passed through Kai Tak, an increase of 8 per cent compared with 1995. Tourism receipts amounted to over $87 billion, contributing per cent to Hong Kong's GDP. Kai Tak handled more than 1.56 million tonnes of
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international air cargo, a 7.6 per cent increase over 1995. Moreover, about 33 per cent of domestic exports, 15 per cent of re-exports and 22 per cent of imports by value passed through Kai Tak.
It is expected that there will be a continuous growth in air traffic and that Kai Tak will be unable to accommodate the forecast air traffic demand. Hong Kong will stand to suffer serious economic losses if Kai Tak has to operate beyond its designed capacity for a protracted period of time.
Memorandum of Understanding
The Memorandum of Understanding (MOU), signed by the British and Chinese Governments in 1991, recognises the 'urgent need for a new airport in Hong Kong' and requires the Hong Kong Government to complete the ACP projects 'to the maximum extent possible' by June 30, 1997.
An Airport Committee was set up in accordance with the MOU under the auspices of the Sino-British Joint Liaison Group for consultations on important matters relating to the airport project that straddle June 30, 1997. In the past few years, consultations within the Airport Committee have resulted in Sino-British agreement over several important issues including the financing arrangements for the new airport and Airport Railway, the Airport Authority Bill and some major franchises at the new airport.
An Agreed Minute was signed in May 1996 allowing the AA to proceed immediately with the construction of the second runway and associated facilities at the new airport. In the same month, the Sino-British Joint Liaison Group reached agreement on the award of three ramp-handling and three aircraft maintenance franchises at the new airport.
Implementing and Financing the ACP
The ACP is being implemented by the government, two statutory bodies wholly owned by the government, and a franchisee for the Western Harbour Crossing. The government is responsible for seven of the 10 projects, which cover land reclamations and the construction of highways and a new town near the new airport. The AA is responsible for providing, developing, operating and maintaining the new airport. The MTRC is responsible for building, financing and operating the Airport Railway. The WHC is being built, and will be operated, by the Western Harbour Tunnel Company Limited under a 30-year franchise.
The 10 ACP projects are projected to cost $156.36 billion in money of the day (MOD) values (sometimes known as out-turn prices), a reduction of $1.8 billion on the previous budget. The use of MOD values takes into account the impact of inflation on the value of the dollar while projects are being designed and built. This is particularly relevant to the ACP because most contracts have been let on a fixed-price lump-sum basis, which means that contract prices have been adjusted to cover inflation over the contract period.
In accordance with the Agreed Minute on financing arrangements for the new airport and the Airport Railway signed by the British and Chinese Governments in November 1994, the Hong Kong Government will inject equity totalling $36.6 billion and $23.7 billion into the new airport and the Airport Railway respectively. It will therefore meet a total of $111 billion, or more than 70 per cent of the total ACP cost,
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in the form of direct funding of government works projects ($50.7 billion) and through equity injection ($60.3 billion) into the AA and the MTRC.
The British and Chinese sides of the Airport Committee agreed on June 30, 1995, that the Hong Kong Government could enter into Financial Support Agreements (FSAs) for the new airport and the Airport Railway with the AA and the MTRC. These agreements provide the government assurances needed to enable the two statutory bodies to launch their borrowing programmes in a cost-effective manner and press ahead with the projects. The agreements with the MTRC and the AA were then signed on July 5 and December 1, 1995, respectively.
Benefits for the Community
The main benefits for the community, in addition to the airport itself, will come from improved road and rail facilities, which will ease congestion in the West Kowloon and Kwai Tsing areas, besides opening up North Lantau. The closure of the existing airport at Kai Tak will also provide substantial environmental benefits for the 380 000 residents living under its flight path, who will escape the noise of aircraft, and make available additional land for residential and commercial developments in Kowloon.
The projects will also provide further local job and business opportunities. The projects have already generated more than 28 000 job opportunities for local workers during the construction period. It is estimated that the new airport and the Airport Railway alone upon opening will create around 15 000 new jobs.
The New Airport at Chek Lap Kok
Good progress continued to be made on all fronts
construction, commercial, retail
and real estate developments, and planning arrangements for the airport's opening in April 1998.
Construction
The bulk of the civil works, and the construction of the first, or southern runway, taxiways and aprons were substantially completed over the past year. In March, British Prime Minister John Major visited the airport island to start the permanent asphalting works for the 3 800-metre southern runway.
The contractors for the passenger terminal building also made good progress. By the end of 1996 the concrete structure and the roof's steelwork were completed. Fit- out works within the building were under way.
Good progress was also made with the terminal's electrical and mechanical services. In the baggage handling hall alone, more than 22 kilometres of conveyors had been installed. The contractors for the terminal's automated people mover also completed the preliminary installation work for the driverless shuttle-train system that will be capable of transporting some 5 200 passengers an hour to the aircraft gates.
On the southern side of the airport island, construction of essential private sector works for major airport support services moved ahead rapidly. These include the terminals of the two air cargo operators, the aviation fuel supply system, and three aircraft catering facilities.
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Following the agreement between the British and Chinese sides of the Airport Committee in May, work on tendering processes for the northern runway and associated facilities has started. The AA aims to have these operational in late 1998. The northern runway will increase the overall runway capacity to 50 aircraft movements per hour initially, compared with 37/38 movements with single-runway operation.
Finance
In January, the AA signed a credit agreement for an HK$8.2 billion syndicated loan facility with 48 local and international banks to meet part of the cost of the first phase of the new airport. Separate borrowings will be arranged to meet the costs to be incurred by the AA in respect of the northern runway project.
Commercial Franchises and Real Estate Development
All franchise agreements for air cargo, aviation fuel supply services and aircraft catering were executed in the first half of 1996. In May, agreement was reached with the Chinese side on the award of franchises for two more airport support services, comprising three franchises for aircraft maintenance and another three for aircraft ramp handling. All these franchises were awarded later in the year.
Three significant agreements on real estate development sub-leases were concluded during the year for an air freight forwarding centre, an airline headquarters building and a hotel with up to 1 200 rooms and the provision of a 1 750-space multi-storey car park.
Retailing-Hong Kong Sky Mall
The AA in July unveiled its 'Hong Kong Sky Mall' retail concept that will provide the new airport with one of Hong Kong's largest shopping malls. There will be about 120 outlets covering a total gross floor area of 30 000 square metres within five major retail zones in the terminal.
Planning for Airport Opening
The AA in 1996 continued to develop plans and policies required to ensure both a smooth transition of operations from Kai Tak to the new airport and a successful opening. Apart from maintaining progress on construction works, an important task is the drawing up of an Airport Operational Readiness (AOR) programme by the AA together with more than 60 business partners of the AA and some 30 government departments.
In February, the Finance Committee of the Legislative Council approved funds in the amount of $19.2 million for payment of ex-gratia allowances to some 150 Airport Management Division staff of Civil Aviation Department (CAD) upon Kai Tak's closure in 1998. This paved the way for the AA to make offers of employment to these CAD staff.
Government Facilities
Work on the government facilities at the new airport including the air traffic control complex and tower, the Government Flying Service Building, an Airmail Centre, a police station and a fire station, was progressing well. Additional government facilities were being designed to support the operation of the northern runway.
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Formation of Land
In all, 1 669 hectares of new land will be created the 1 248-hectare platform for the new airport; 67 hectares of reclamation along the northern shore of Lantau for Phase I of Tung Chung new town; a 334-hectare reclamation at West Kowloon; and a 20-hectare reclamation at the Central waterfront.
Tung Chung new town will ultimately occupy two valleys at Tung Chung and Tai Ho on northern Lantau, plus a coastal strip of reclamation in between. It is planned to house 15 000 people by the end of 1997 and up to 200 000 people by 2011. Besides providing support services for the new airport, it will accommodate commercial and industrial developments and serve as an impressive gateway to Hong Kong for visitors. Housing will be a mixture of private and public rental, and the Government's home ownership scheme. Work on Phase I of the new town started in April 1992, with completion scheduled for the second quarter of 1997. The reclamation work has been completed and infrastructure works are well under way. At the year's end, 87 per cent of the project was finished. Population intake is expected to commence in mid-1997. The West Kowloon Reclamation will provide housing for 91 000 people, commercial space and vital road and rail arteries linking Kowloon with the new airport and the north-western New Territories. The target completion date is mid- 1997 and the project was 97 per cent complete at the end of 1996.
Phase I of the Central reclamation will provide opportunities for the development of Hong Kong's central business district, plus a site for the Airport Railway's terminus on Hong Kong Island. The project (excluding works entrusted to the Airport Railway Hong Kong Station Contract) was substantially completed in 1996, ahead of the target completion date of mid-1997.
New Transport Facilities
The five major highway projects in the ACP are designed to cater for traffic to the new airport and to relieve congestion on existing roads. They are the Western Harbour Crossing, the West Kowloon Expressway, the Kwai Chung and Tsing Yi sections of Route 3, the Lantau Link (formerly known as the Lantau Fixed Crossing), and the North Lantau Expressway. Together with the Airport Railway, these highways will provide a high-speed transport link between the new airport, Tung Chung new town and Central District, and will stimulate developments on North Lantau.
New Highways
The Western Harbour Crossing will be a dual, three-lane, immersed-tube road tunnel. It will link the West Kowloon Expressway on the West Kowloon Reclamation with a new section of elevated road in Hong Kong Island's Western District connecting to Connaught Road Central. Apart from providing a key part of the airport highway route, it will relieve congestion at the two existing cross-harbour tunnels. Construction work started in September 1993. The last of the 12 tunnel units was sunk into position in Victoria Harbour in April 1996. The project was 97 per cent complete at the end of 1996 and is targeted for opening by mid-1997.
The West Kowloon Expressway will run 4.2 kilometres from the northern portal of the Western Harbour Crossing to Lai Chi Kok, forming an important part of Route 3, with a dual three-lane carriageway. It will serve developments on the West
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Kowloon Reclamation and help relieve pressure on existing local and distributor roads. Physical work on the expressway started in August 1993 and is scheduled for opening in February 1997. At the year's end, 95 per cent of the project was complete. The Kwai Chung and Tsing Yi sections of Route 3 will link the northern end of the West Kowloon Expressway to the approaches to the Lantau Link. It comprises the Cheung Ching Tunnel, the Kwai Chung Viaduct and the Rambler Channel Bridge. The Rambler Channel Bridge was structurally completed in June 1996. Work on the remaining two contracts continued, with completion scheduled for early 1997. Significant milestones were reached during the year with the completion of the major tunnel works for the Cheung Ching Tunnel and completion of viaduct construction above the busy Kwai Chung Road. The Kwai Chung viaduct is scheduled for opening in February and the Tsing Yi section of Route 3 is expected to open in May 1997. Overall, 98 per cent of the project was complete.
The two-deck Lantau Link, carrying a railway as well as roads, consists of the Tsing Ma suspension bridge linking Tsing Yi to Ma Wan; a viaduct over Ma Wan; and the cable-stayed Kap Shui Mun Bridge linking Ma Wan to Lantau. The Tsing Ma Bridge has already become a major Hong Kong landmark. Its main span of almost 1.4 kilometres will make it the world's longest suspension bridge carrying both road and rail traffic. Work on the Lantau Link began in May 1992 and it is scheduled to open in May 1997. Deck section erection for the Tsing Ma and Kap Shui Mun Bridges was completed in March. Overall, 95 per cent of the project was complete. The North Lantau Expressway will be a 12.5-kilometre, dual three-lane highway along the northern coast of Lantau, joining the Lantau Link to Tung Chung new town and the new airport. Work started in 1992 and is scheduled for completion in February 1997. The project was 99 per cent complete.
Airport Railway
The 34-kilometre Airport Railway will provide two separate services, operating mainly on the same tracks but with separate platforms. There will be a fast passenger link to the new airport, called the Airport Express, and a domestic service called the Lantau Line.
During the year, key milestones of the civil construction works were achieved generally on time. In January, the final section of seawall enclosing the Central Reclamation was closed. Track-laying began in March, marking the start of system- wide installations and other electrical and mechanical works. Topping-out of the Tai Kok Tsui Station (renamed Olympic Station in December) and the breakthrough of the Lai King Tunnels were achieved in August. The Airport Railway cross-harbour tunnel was structurally completed in October after the immersion of the last of the 10 tunnel units in May. Structural work for the Tung Chung Station was completed in December. Good progress was made on the manufacture of the rolling stock, as well as the detailed design and manufacturing of other electrical and mechanical equipment. By the end of 1996, 65 per cent of the Airport Railway project was complete.
Contracts and Tenders
Up to the end of 1996, a total of 170 major contracts, worth about $95.8 billion, had been awarded. They included 90 contracts worth about $38.4 billion awarded by the
THE AIRPORT CORE PROGRAMME
government; 48 contracts worth about $33.9 billion awarded by the AA; 31 contracts at a total cost of $17.8 billion awarded by the MTRC; and one construction contract awarded by the WHTC at a cost of $5.7 billion.
The government, AA, MTRC and WHTC welcome international participation in ACP contracts and strictly apply Hong Kong's traditional level playing field' approach in tendering procedures and the award of contracts. A significant number of international companies from a wide range of countries have won ACP contracts, often as part of joint ventures. By the end of 1996, Japan had won the largest share by value with 26 per cent of the total, followed by Hong Kong (23 per cent), the United Kingdom (16 per cent), the People's Republic of China (8 per cent), the Netherlands (6 per cent), France (5 per cent), Belgium (3 per cent), New Zealand (3 per cent), Spain, Australia, the United States of America and Germany (each about 2 per cent). The remaining 2 per cent was shared by Italy, South Africa, Austria, Norway, Portugal and Denmark.
Management and Cost Control
After the establishment of an overall strategy on the scope, programme and budget for the ACP, regular reviews continued in 1996. The strategy is the basis for the overall programme and its project management system. Fixed-price, lump-sum contracts are being used for most projects to minimise risks to the government, especially from inflation and changes in the estimation of quantities.
Management and control systems have been implemented for the ACP, laying down procedures for monitoring and controlling programme progress and costs during the design and construction of the projects. Early warning of possible cost increases are reported to the New Airport Projects Co-ordination Office (NAPCO) and relevant department heads. Trends which could lead to cost increases are identified at an early stage. If cost increases are accepted, off-setting savings are sought in the same or other ACP projects. In addition, the government's competitive tendering system has enabled it to obtain value for money on the ACP contracts.
Government works departments, the AA, MTRC and WHTC have full responsibility for their own project-level planning, execution, control and management. They are required to complete projects on time and within budget, and to report progress and co-ordinate their work through NAPCO.
NAPCO's task is to ensure compliance with ACP plans, programmes and budgets, and to act as a focal point for the management of project interfaces and resolution of problems. It is made up of staff from the government and the ACP project management consultant.
Protecting the Environment
Environmental impact assessment (EIA) studies have been undertaken for each ACP project as an integral part of project planning and design. These studies have generally shown that, with suitable mitigation measures in operation, the projects will be environmentally acceptable. Such measures include the installation of noise barriers; window insulation to mitigate noise exposure; plus general construction site housekeeping. Extensive environmental monitoring and audit programmes were conducted by the project offices and reported to the Environmental Protection Department (EPD) to ensure the acceptable performance of individual projects. In
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addition, environmental project offices have been established by the EPD to monitor and audit the cumulative effects of the construction works and to ensure that environmental issues are quickly identified and acted upon by the works agents.
Safety at Work
In 1996, the government strengthened safety measures to further encourage proactive safety management on site and to spread a safety culture among all the personnel involved in the ACP projects.
Management and working committee meetings involving senior officials and site staff were held frequently to address construction safety issues. Contracts with high accident rates were brought to the ACP Construction Safety Steering Committee chaired by the Secretary for Works for review on specific safety actions taken. Lessons learnt from accidents were circulated to the ACP participants.
The ACP Construction Safety Award Scheme is organised annually to commend ACP contractors, workers and safety personnel in sites which diligently executed their safety management and promotion programmes, and achieved good safety records. Various accident prevention and safety management training courses were provided for supervisory staff at ACP sites by the Labour Department, Fire Services Department and Marine Department. The Labour Department also restructured and strengthened its inspection team to improve compliance with safety requirements on ACP sites. In 1996, the industrial accident rate for ACP contracts was 60 reportable accidents per thousand workers per year, compared with the corresponding rate of 233 for the construction industry as a whole in 1995.
Community and Public Relations
The ACP Exhibition Centre at Ting Kau was well received, with more than 480 000 members of the public visiting it since the opening in January 1996. Seminars and briefings on the ACP projects were conducted for schools. Tours of the ACP Exhibition Centre were organised for schools and community organisations.
Briefings on the ACP were also given to a wide range of audiences, both locally and overseas. An ACP presentation was given at the 'World Congress on Project Management' in June 1996 organised by the International Project Management Association in Paris. Visits to ACP sites were arranged for members of the Executive Council, the Legislative Council, the Airport Consultative Committee, the two Municipal Councils, and the 18 District Boards; overseas government officials and members of parliaments; major business, educational, professional and financial groups; and members of the consular corps.
The Airport Authority provided a wide range of programmes throughout the year to cater for the high local and international interest in the new airport and about 13 000 people visited Chek Lap Kok. Press releases and photographs were issued throughout the year to publicise works progress or to highlight project milestones. Press conferences, briefings and site visits were arranged for the media. Promotional publications distributed included a brochure, a bilingual leaflet, regular issues of a newsletter and a fact sheet on works progress as well as the creation of an ACP home Page on the Internet. Updated videos on the ACP and on the construction of the Tsing Ma Bridge were produced.
'A traditional junk under full sail draws near the Tsing Ma Bridge,
one of 10 major construction works forming the Airport Core Programme. At 1 377 metres, it is the world's longest suspension bridge carrying both road and rail traffic. The pylons are 206 metres high.
TRAFALGAR HOUSE.
MITSUI COSTAIN
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DALLA BRIDA
Huan 來理解
SP
Larger than San Francisco's Golden Gate Bridge, the Tsing Ma Bridge looms over a junk and a freighter in the Ma Wan Channel, which runs between Tsing Yi and Ma Wan Islands. It links the new airport at Chek Lap Kok with the Kowloon peninsula and is due for completion in May 1997. FAR RIGHT: Workers apply final touches to the bridge's massive cables, each composed of 33 000 wires as thick as a thumb.
The terminal for Hong Kong's new international airport begins to give observers a good idea of its final form. The 750-metre central concourse will have a driverless train system and two kilometres of moving footway to get passengers to and from their aircraft. The vaulted and cantilevered design of the passenger terminal's roof acts as an energy efficient insulator.
' Aircraft will get most of their landing instructions from air traffic controllers
in this tower set between the north and south runways at Chek Lap Kok. Information gathering bases on islands in Chinese waters east and west of Hong Kong will augment the system being designed to take the airport into the 21st century. The new passenger terminal stretches away to the east at the top of the picture.
17 PORT DEVELOPMENT
HONG KONG, one of the world's busiest container ports, handled nearly 13.4 million twenty-foot equivalent units (TEUs) of containers in 1996. This represents an increase of some 7 per cent over 1995.
Handling this container cargo and many other cargoes which come and go by means other than containers - added significantly to Hong Kong's economy. Studies by the Government's Census and Statistics Department and Planning Department have indicated that port-related industrial and commercial enterprises contribute some 20 per cent towards Hong Kong's GDP and provided employment for 600 000 of its workforce. Matching supply of port facilities with demand will, hence, ensure economic growth and optimise employment opportunities for the community. Forecasts of future growth are, therefore, important.
The Port Cargo Forecasts published during 1996 predicted that by the year 2016 there would be a demand for Hong Kong to handle 39 million TEUS a year. This is equivalent to handling five TEUS every four seconds, every minute of every hour of every day.
To cope with this demand the territory is planning a completely new container port on Lantau Island with twice the capacity of the present port at Kwai Chung.
Building this new port, on a series of artificial islands stretching south-east from Lantau, will be one of the world's biggest civil engineering projects.
The new port is vital, not only for Hong Kong, but for southern China, one of the fastest industrialising areas in the world. Some 70 per cent of cargo passing through Hong Kong is entrepôt trade with China.
Despite the upgrading of Chinese port facilities, Hong Kong is likely to remain the hub port for the region well into the next century.
As has been the case with the existing container port, all the new terminals will be built and operated by private enterprise. Hong Kong is the only major port in the world not run by a port authority. This is a system which has worked well to make Hong Kong not only one of the busiest, but also one of the most efficient ports in the world.
Port Development Board
Hong Kong was founded as a port for the China trade just over 150 years ago. Since then it has flourished, not only as a port, but as a centre of demand-led, free market economics. Its port has grown along with its own economy and that of China.
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A decade ago, it became apparent that future growth would be of an order not previously appreciated. The demand for future facilities would be on a scale for which careful co-ordination would be needed so that the development would integrate into overall plans for developing the territory.
From recognition of this need came the Port Development Board (PDB), established in April 1990. The board is not a port authority. However, it advises the government on all aspects of port development and is responsible for:
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identifying strategic port needs
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monitoring plans to meet these needs
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listening to and gathering the views of the port industries and services following up on those views as necessary
maintaining the port's competitiveness in the region and
linking government and private sector involvement in port planning and development.
To do this, the board brings together key players from the private sector and the government to determine and promote recommended solutions to problems. It acts as a focal point for ideas and opinions expressed by port operators and for anyone affected by port expansion.
The board assesses development needs in the light of changing demand, port capacity, productivity and performance and competition from regional ports. One of its main tasks is to determine what port facilities will be needed and to advise on the best means of ensuring that those facilities are in place, on time.
Current Strategic Planning
Significant investments in upgraded equipment and systems in the existing terminals enabled Hong Kong to handle the growth in container terminal throughput in 1996. Nevertheless, at present rates of growth of demand for such facilities, it is expected that the Kwai Chung terminals will be operating at full capacity by the first quarter of 1999. In September, the way was cleared for Container Terminal Nine (CT9) on Tsing Yi Island to be taken forward so that it might come into operation in line with current demand forecasts in January 1999. Rationalisation by operators of Container Terminals One to Nine means that CT9 will include feeder berth capacity in addition to its previously planned four berths for main line ships.
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Detailed planning and design, and work on lease conditions for the first phases of Lantau Port, was completed in 1996. Barge berth facilities have been included in the designs for CT10 and CT11 in Lantau Port. Under the continuing government plan and programme for port development, feasibility studies for CT12 and CT13 in Lantau Port are expected to start in early 1997.
In planning Lantau Port, environmental considerations have played an important role. The orientation of terminals is such that visual and noise impact is minimised, while safety and operational efficiency are optimised.
With the continuing growth in cargo throughput, shippers are seeking additional means of transporting goods to and from China. They are increasingly using the natural highway of the Pearl River and there has been a substantial increase in container barge traffic on the river.
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The PDB has forecast that by 2006 some 93 million tonnes of freight will be carried by river and this will rise to some 139 million tonnes in 2016. In 1994 some 24 per cent of river cargoes was containerised. By 1995 this had reached 32 per cent and forecasts predict that it will reach 40 per cent by 2016.
Work on the construction of Hong Kong's first River Trade Terminal (RTT), specifically designed to handle river cargoes, got under way near Tuen Mun in the north-west New Territories. This location means that many river vessels will be able to avoid the busy Ma Wan Channel. The first phase of the RTT is planned to begin operation in 1998.
Port Cargo Forecasts
According to the latest Port Cargo Forecasts, container throughput is expected to reach 39 million TEUS by 2016. This reflects an average growth rate of 5.9 per cent annually. Total cargo to be put through the port in 2016 would be in the order of 453 million tonnes, growing by 5.4 per cent each year.
The PDB's Port Cargo Forecasts are the basis of the government's Port Development Plan and Programme. The forecasts are revised every two years to ensure that they are kept as up-to-date as possible. The next forecasts will be published in early 1998.
In compiling the forecasts, the PDB takes into account trends in Hong Kong as well as projected growth of the world economy, the economy of China, particularly southern China, expected competition from regional and Chinese ports and likely changes in the related shipping and cargo patterns. The PDB reviews its forecasts frequently and regularly. It is clear that cargo demand in this part of the world continues to grow. And, even as new ports spring up in other parts of southern China, it is apparent that Hong Kong's share in meeting that demand will continue to be substantial.
Indeed, the development of these new Chinese ports is expected to stimulate growth and facilitate the further development of the economy. That will be good not only for China but also for Hong Kong. The additional traffic will increase the chance of additional shipping calls at Hong Kong and enhance its maritime support services. Any spur to competition can only be good for Hong Kong. As all sides recognise, the new ports will be complementary to Hong Kong and vice versa and this will help to ensure continuing high standards and quality of service in Hong Kong.
Lantau Port Container Berths
The current configuration is that each berth will have a 320-metre quayface with a terminal area of about 20 hectares and be supported by 10 hectares of off-terminal back-up land. This back-up area will be used for container storage, repair and refurbishment as well as godowns, container freight storage facilities and lorry and trailer parking.
Depths alongside will accommodate post-Panamax vessels (ships which are so big they cannot use the Panama Canal) and the quays are designed for container gantry cranes with an outreach of 45 metres to service these larger vessels. The terminals will have sufficient flexibility to incorporate automated systems of container handling.
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Initially, marine access to CT10 and CT11 will be from the east using a short channel dredged from the East Lamma Channel/Victoria Harbour approaches. With the construction of CT12, with six berths on a central island facing south whose access will be by road bridges at the eastern end of the development, the dredging of the West Lamma Channel will be required. CT13 would provide a further four berths on a linked island developed close to Kau Yi Chau. Scope will exist for north-facing berths to be introduced on the central island as the final stage of development, (CT14).
Lantau Port Ancillary Works
Within the Lantau Port, RTTs are being planned to act as an import/export link for Pearl River cargoes going through the container port. The economic viability of these terminals would be reviewed in the light of eventual experience of operation of the RTT at Tuen Mun.
Dockyard support facilities and new typhoon shelters are also planned as part of the ancillary works, as is a marine services support area, centrally located for both Victoria Harbour and the new port, which will provide a harbour for tugs, pilot boats, launches and floating cranes as well as shore support facilities for servicing and maintenance.
As these ancillary works develop, it may become necessary to relocate floating docks presently operating off North Lantau.
18 PUBLIC ORDER
HONG KONG is one of the safest cities in the world. The overall crime rate of 1 253 crimes per 100 000 people and the violent rate of 241: 100 000 have fallen to their lowest in the past 15 years and 10 years, respectively.
The Organised and Serious Crimes Ordinance has enhanced the Police ability to investigate organised and serious crimes. In order to assure witnesses in triad cases of their safety, effective witness protection arrangements have been put in place. The establishment of the Police Central Witness Protection Unit in April 1995 further enhanced the witness protection capability. The Witness Protection Bill introduced into the Legislative Council in July 1996 will establish a system for the change of identity of high-risk witnesses.
Fight Crime Committee
The Fight Crime Committee, chaired by the Chief Secretary, provides valuable advice and puts forward recommendations on areas of public concern and on measures to improve the maintenance of law and order.
In 1996, the committee continued to provide advice on measures to combat crime. Specific subjects considered included the police response to 999 calls, the improvement in report rooms and interview facilities in police stations, the personal encounter with prisoners' programme, and the role played by Education Department in the prevention of rape/child sexual abuse. The committee monitored the progress of the action plan to tackle juvenile crime, and the work of the Security and Guarding Services Industry Authority established on June 1, 1995, to consider and determine applications for licences by security companies. It also commissioned the City University of Hong Kong's research team to conduct a research on the effectiveness of the rehabilitation programmes for young offenders, launched a publicity campaign to fight youth crime, and held a Fight Crime Conference in December 1996 to foster community interest in the fight against crime.
To ensure that 999 calls were promptly answered, the committee considered the plans and strategies of the overall operation of the 999 call-answering system. Members were concerned that the police should be able to provide the optimum levels of service to the public.
As part of the government's drive to improve services to the community, the Police Force is committed to providing a more welcoming and user-friendly environment in police report rooms so as to encourage the public to come forward to report crime and to seek police assistance. The committee had provided valuable advice on improvements, especially on reporting procedures.
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It also considered the Personal Encounter with Prisoners Programme, which provided opportunities for young people to acquaint themselves with the harmful effects of delinquency or criminal behaviour through personal interviews with serving prisoners. The committee felt that preventive education was important to young people, that the programme was useful, and should continue to be run by the Correctional Services Department.
With the mounting concern of the public towards the increase of rape/child sexual abuse cases in 1996, the committee considered that the Education Department should play an active role in sex education. This was achieved through four channels: curriculum, school activities, guidance and counselling, and home school liaison.
In 1996, the committee continued to devote much of its attention to the problem of juvenile crime. Its sub-committee, the Standing Committee on Young Offenders, commissioned the City University's research team to conduct a study in 1996-97 on the effectiveness of rehabilitation programmes for young offenders. In June 1996, the committee also considered the progress of the Action Plan drawn up to implement the recommendations of the research report on the Social Causes of Juvenile Crime, a study commissioned by the Standing Committee on Young Offenders and completed by the Social Sciences Research Centre of the University of Hong Kong in 1995.
District Fight Crime Committees continued to play an important role. They monitored the crime situation in their districts, and helped foster both community awareness of the need to prevent crime and community participation in combating crime. In December 1996, the Governor officiated at the Fight Crime Conference 1996 at the Hong Kong Convention and Exhibition Centre in which all District Fight Crime Committee members participated.
Police Force
The Royal Hong Kong Police has operational responsibility for crime prevention and detection; the maintenance of law and order; traffic matters and the detection of illegal immigration, other than at entry and exit points.
In 1996, the crime situation in Hong Kong remained stable with a drop of 14 per cent, or 12 836 crimes, in the total number of crimes recorded. There was also a reduction in violent crime. The number of vehicles reported missing fell 40 per cent compared with 1995. As a result of better intelligence and improved co-operation with China, a total of 24 criminal fugitives and nine stolen luxury vehicles were returned to Hong Kong by the Chinese authorities.
The commander-designate of the Hong Kong SAR Chinese Garrison, Lieutenant- General Liu Zhenwu, paid a two-day visit to the Force in August as part of a familiarisation visit to the territory. Lieutenant-General Liu and his party were briefed on the Force's structure and operations. They also visited the Hong Kong Island Regional Command and Control Centre, Police Tactical Unit, Special Duties Unit, and Police Driving School.
Results of the first public opinion survey on the quality of police services were released on April 2. Force performance was rated as good in regards to maintaining public order at demonstrations and public events, traffic control, illegal immigration, narcotics crimes, non-firearm violent crimes, vice activities, organised and triad crimes, and firearms crimes. The survey conducted between December 1995 and
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January 1996 had provided valuable information on how to improve the Force's service and performance.
The Road Traffic (Safety Equipment) (Amendment) Regulations 1995, which came into operation in June 1996, introduced legislation covering the wearing of seat belts by middle front-seat passengers in private cars, taxis, light buses and goods vehicles, and rear-seat passengers in private cars when such seat belts have been fitted. The new regulations should assist in reducing passenger casualties in traffic accidents.
On June 1, 1996, the Watchmen Ordinance was repealed and replaced by the Security and Guarding Services Ordinance. In all, 116 698 watchmen are issued with Watchmen's Permits under the Watchmen Ordinance. These will be transferred to the new Security Personnel Permits in a phased programme over the next five years.
Marine Region was restructured in April, as a result of New Territories South Region taking over responsibility for the policing of Lantau Island. Marine Outer Waters District now includes North, East and West Divisions, with Marine Port District having South, Harbour and an enlarged Cheung Chau Division. The Marine Regional Headquarters moved to new premises at Sai Wan Ho on Hong Kong Island at the end of the year. A parade was held in November to mark the occasion as the previous Headquarters had been occupied for 112 years, and in 1994 had been declared a historical building.
A new Finance Department was set up on April 15 with a view to strengthening financial controls and planning. Headed by a Financial Controller pegged at the civilian equivalent of Assistant Commissioner rank, the department will develop a range of financial systems to give Force managers a clearer picture of where and how resources are spent. It is also responsible for the Force's Budget planning as well as Stores and Internal Audit.
Owing to the shrinking population of Vietnamese Migrants in Hong Kong, Tai A Chau Detention Centre, which opened in February 1991 and housed some 9 600 Vietnamese at full capacity, was closed in September. Some 5 600 people were transferred to the Whitehead Detention Centre pending repatriation to Vietnam. Tai A Chau was the last detention centre under police management.
Crime
Reported crimes in 1996 totalled 79 050, a decrease of 14 per cent compared with the 91 886 crimes recorded in 1995. The crime rate stood at 1 253 cases per 100 000 of the population, a decrease of 16 per cent, compared with 1995.
Violent crime, which includes murder, wounding, serious assault, rape, indecent assault, kidnapping, blackmail, criminal intimidation, robbery and arson, declined to 15 191 cases, compared with 17 087 in 1995. Robbery, wounding and serious assault accounted for some 72 per cent of the total number of violent crimes in 1996.
The situation regarding vehicle theft continued to improve. Overall, 2 561 motor vehicles were reported missing in 1996, a drop of 40 per cent compared with 1995. The number of robberies involving the use of firearms- both genuine and pistol-like objects - was 83, a decrease of 49 per cent compared with 1995.
In all, 40 741 crimes or 52 per cent of the total were detected, with 47 157 people arrested for various criminal offences. Of those arrested, 6 479 were juvenile offenders (aged between seven and 15 years) and 7 941 were young persons (16 to 20).
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Violent Crime (Firearms Only)
The number of robberies involving genuine firearms continued to drop. The reasons for this included successful police action against firearms suppliers, both within Hong Kong and in China, and better liaison with the Chinese law enforcement agencies to stop illegal import of firearms.
Vehicle Theft
The patterns of vehicle theft did not change significantly. Joint efforts in border control by the Hong Kong and Chinese authorities slowed down thefts of articulated tractor units, which had been prevalent in the previous year. However, it remained a major concern.
Unmanifested left-hand-drive vehicles continued to be seized in transit through Hong Kong to China. Some of the vehicles were stolen in other jurisdictions and sent to China through Hong Kong.
The number of luxury cars reported missing continued to drop. Again, China provided the marketplace for such vehicles, and enforcement action by the Chinese authorities has had significant impact.
Organised Crime and Triads
Action against organised crime continued to be a high priority. Long-term, intelligence-led, and complex investigations continued to yield results.
Proactive operations involving undercover operations produced notable successes. In particular, senior members of the Fuk Yee Hing and Wo Shing Wo societies were convicted of serious criminal offences under the provisions of the Organised and Serious Crimes Ordinance.
Action against loansharks continued to be a high priority and several syndicates were neutralised during the year.
Action against triads and organised crime has been substantially enhanced since the full implementation of the Organised and Serious Crimes Ordinance on April 28, 1995. In 1996, police successfully applied to the courts to invoke the special investigative powers under the ordinance to compel witnesses to attend interviews and to demand the production of documents, to assist with inquiries into two major triad or organised crime investigations. Criminal assets valued at more than $5.8 million have been confiscated and $5 million are being restrained pending court proceedings.
In addition, six money laundering prosecutions have been launched. Following conviction in nine cases of a triad-related or serious nature, enhanced sentencing of the defendants was applied for. Some defendants received sentence increases ranging from 25 per cent to 66 per cent.
Witness Protection Unit
This unit administers the Witness Protection Programme which co-ordinates the Police Force's overall response to the treatment of endangered witnesses. It comprises 34 specially-selected and trained officers who are capable of providing a variety of protection measures including relocation, the provision of protective security, or furnishing round-the-clock protection in Police-operated safe houses.
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Vulnerable Witnesses and Child Protection
After the commencement of the Criminal Procedure (Amendment) Ordinance in February 1996, the Regional Child Abuse Investigation Units, charged with the investigation of cases involving children who are sexually or physically abused, commenced making applications to courts to adduce video taped testimony and to utilise the Court Closed Circuit Television Link System. During the year, 37 applications were made and approved in respect of 41 child abuse cases taken before the courts.
Two additional video interview and medical examination suites were established - one each in the New Territories and Kowloon West - thus bringing the number available to five. The suites are used to video tape interviews with vulnerable victims and witnesses and conduct forensic medical examinations in a friendly and non- threatening environment.
Throughout the year, a series of awareness training programmes was conducted for Police and attended by other concerned departments and agencies. The programmes covered child development, paedophilia, child pornography and child sexual abuse and were attended by more than 1 000 police officers of the rank of Inspector and above. Further multi-disciplinary intensive training programmes in video recorded interviews of vulnerable witnesses were conducted in July and October. This intensive training covered: understanding of child development; the problems related to child sexual and physical abuse; investigative processes and procedures; and advanced skills for interviewing children and the mentally handicapped on video tape specifically for the purposes of investigation and prosecution. In all, 20 officers successfully completed the course.
Commercial Crime
The Commercial Crime Bureau investigated several local and overseas complaints relating to sophisticated Advance Fee Fraud perpetrated by persons claiming to be officials of the Central Bank of a West African country. Three people were arrested and convicted. The convictions are believed to be the first of their kind in the world in combating this particular kind of international fraud.
The Computer Crime Section was established in 1993 to enforce the Computer Crimes Ordinance. With the rapid increase in both the use of computers and the public awareness of the section's functions, the number of computer crime reports has risen. The section has so far secured 11 successful prosecutions against persons who had made unauthorised access to computer systems.
The Counterfeit and Forgery Division also enjoyed another successful year in combating currency counterfeiting; credit card fraud; and travel and identity document fraud.
Narcotics
The retail price of No. 4 heroin fluctuated throughout 1996. By the end of 1996, the average purity was 44.97 per cent at the average price of $390.65 per gram compared with a purity of 23.34 per cent and a price of $380 at the end of 1995.
During 1996, 297 kilograms of opiate drugs, comprising opium and No. 4 heroin, were seized, compared with 379.9 kilograms in 1995. Police and the Customs and
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Excise Department made 14 827 arrests for narcotics offences, compared with 16 143 in 1995.
Narcotics enforcement resulted in 19 heroin manufacturing or cutting centres being neutralised. The territory's demand for methylamphetamine or 'ice' continued. A total of 46.8 kilograms was seized in 1996.
Since the introduction of the Drug Trafficking (Recovery of Proceeds) Ordinance in September 1989, and the establishment of the Financial Investigation Unit, a total of $208,950,265 has been confiscated from drug traffickers in Hong Kong. As a result of international co-operation, a total of $19,219,380.17 has been seized from local drug traffickers overseas.
The involvement of young persons in drugs continued to be a major target of the narcotics enforcement strategy. During 1996, amendments to the Dangerous Drugs Ordinance were drafted to provide for heavier sentencess for adults who exploit young persons in the illegal drug trade.
Crime Prevention
The Crime Prevention Bureau maintained its initiative in public education programmes within the community. Particular emphasis was placed on advice regarding domestic security and the security of computers and computer data. The new Crime Prevention Bus, fitted with the latest security equipment, continued to promote security in domestic premises at many venues throughout the territory.
The Security and Guarding Services Ordinance, which was introduced in 1995, was aimed at improving the quality of security and guarding services. The bureau has embarked on a programme through which advice is offered to planners at the design. stage for building projects. Its capability to liaise directly with architects on secure environmental design has achieved considerable improvements in the security of vulnerable sites.
The new model 'Robotcop' proved extremely popular and there have been increased demands for its appearance at fight crime campaigns, public exhibitions and junior schools. Its anti-crime messages, aimed at the young, promote civic awareness and the danger of shop theft.
Crime Information
The Criminal Records Bureau (CRB) is the sole repository for criminal records in Hong Kong, housing complete records on all persons convicted of crime in the territory. These records and indices provide details of persons wanted, suspected offenders, missing persons, stolen property, outstanding warrants and missing vehicles.
The CRB also has an Enhanced Police Operational Nominal Index Computer System (EPONICS), which operates round-the-clock to provide immediate enquiry support to all operational police officers. The Bureau has embarked on a programme to improve efficiency and effectiveness with gradual introduction of a fully computerised system to house all records.
Ballistics and Firearms Identification
The number of weapons seized for the year remained stable when compared with 1995, reflecting the continued effectiveness of cross-border co-operation. However,
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the number of cases showed a marked increase when compared with last year, mainly due to an increase in the number of air- and gas-powered weapons seized.
The bureau plans to purchase sophisticated pieces of equipment, including a computer-assisted comparison microscope, a very sensitive velocity measuring chronograph and another optical comparison microscope. The computer-assisted comparison microscope will greatly enhance the bureau's capabilities.
Continued development of the tests to show that a person has held and fired a gun, have resulted in a significant increase in the sensitivity of these highly scientific techniques.
Identification
The Identification Bureau continued to play an important role in crime detection and investigation, providing an efficient service to all units in the Force in fingerprint technology and forensic photography.
In fingerprint identifications, the bureau achieved high levels of efficiency and service in 1996 with the use of the Computer Assisted Fingerprint Identification System. Altogether, 976 persons were identified in connection with 959 cases. Implementation of Phase II of the system, which entails full computerisation of the bureau's fingerprint records, has been progressing smoothly. The system will become fully operational in April 1997.
During the year, officers from the Scenes of Crime Section attended 22 254 crime scenes. They have endeavoured to improve their service by attending all crime scenes with minimum delay.
The Main Fingerprint Collection Section is principally responsible for confirming people's previous criminal convictions. In 1996, the section processed the fingerprints of 202 315 persons and led to the identification of 91 052 persons with criminal records.
In 1996, the Photographic Section produced 65 500 monochrome photographs and 896 188 colour prints and slides. It was also responsible for making videos of crime re-enactments, video-taped statements from suspects and preparation of photographic exhibits for presentation in court.
Interpol
The Royal Hong Kong Police joined the International Criminal Police Organisation (ICPO), better known as Interpol, in September 1960 as a sub-bureau of the United Kingdom National Central Bureau. In 1996, ICPO had a membership of 177 member countries or bureaux and 11 sub-bureaux including Hong Kong. A Hong Kong police officer is seconded to the ICPO Secretariat General in Lyon, France, to work in one of its specialised groups.
Interpol aims to ensure and promote the widest possible mutual assistance among police authorities in the prevention and suppression of crime, pursuant to the laws in different ICPO member countries.
Interpol Hong Kong acts as a co-ordination centre in dealing with criminal information and associated inquiries between Hong Kong and Interpol member countries which have diplomatic relations with the United Kingdom. It also maintains close liaison with local consulate officials.
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There has been enhanced liaison and co-operation between Hong Kong and China. Two liaison officers of Interpol China have been attached to Hong Kong since 1993 and their presence in the territory has proved to be most constructive. Apart from this, contacts with Chinese law enforcement organisations have been established at the National Central Bureau in Beijing, the Guangdong Liaison Office, Shenzhen and Zhuhai Liaison Sub-Offices in Guangdong Province.
As a result of the expanded liaison with China, co-operation between both sides has continued to develop. The Chinese police have returned a total of 90 criminal fugitives to Hong Kong since 1992 and 57 stolen luxury vehicles have been returned to the territory in the same period.
Public Order
No major incidents affected Hong Kong's internal security in 1996. The Police Tactical Unit (PTU) provided much support to the Correctional Services Department in Vietnamese Migrants (VM) Centres with regard to the Orderly Repatriation Programme. Two serious riots in VM Centres required PTU personnel to restore law and order. The PTU was also committed to anti-crime patrols, illegal immigration operations and crowd management during festive occasions. It played an important role in maintaining law and order at demonstrations and public gatherings.
The structure of PTU companies underwent two major changes during the year. The first was the revision of the platoon structure, with the addition of a sergeant post in each column. This has brought about a better command structure and more flexibility in the deployment of manpower. The second was the introduction of female police officers into regular PTU companies. Female police inspectors commenced training as platoon commanders alongside their male counterparts in August.
More than 2 000 police officers, from the rank of superintendent to constable, were trained in the PTU companies during the year. The PTU is also responsible for the continuation training of the District Internal Security Companies. This training. focused on crowd management and the companies' support role in the overall internal security structure of the Force.
The Special Duties Unit, the Force's counter-terrorist response unit which is also based at PTU Headquarters, was used on several occasions to assist crime units against armed gangs.
Illegal Immigration
Despite the downward trend of illegal immigrants entering Hong Kong in recent years, enforcement action against illegal immigrants remained one of the Force's top priorities. In 1996, 23 180 illegal immigrants were arrested, representing a decrease of 13.6 per cent from 1995. Most of the illegal immigrants originated from Guangdong Province, but there was an increasing trend of illegal immigrants coming from the northern provinces of China. Among those arrested, 50.8 per cent entered Hong Kong by sea and the remainder by land. Hiding underneath the chassis of containers or goods vehicles was a popular method of entry at border control points while climbing over the border fence became less popular.
The Force is responsible for the security of both the land and sea border. In 1996, a daily average of 1058 officers and 59 vessels were deployed to counter illegal immigrants. Most of the illegal immigrants arrested were repatriated to China but a
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small portion that fell within the prosecution policy were prosecuted for landing or remaining in Hong Kong without permission. About 63.5 per cent of the arrested illegal immigrants had previously entered the territory.
Most of the illegal immigrants came to seek employment, mainly as construction site workers or casual labour. However, an increasing number came as mendicants, prostitutes or to give birth. While the involvement of illegal immigrants in crimes showed a decrease, those from the northern provinces of China appeared to be more prone to committing crimes; had a lesser chance in finding work due to language differences; and lacked family support in the territory.
Vietnamese Migrants
During the year, the government objective to repatriate all Vietnamese Migrants (VM) as soon as possible required regular Police operations to assist Correctional Services Department (CSD) in camp movements and to escort VMs on repatriation flights. Although there have not been any prolonged demonstrations against the repatriation programme, several incidents caused some concern to the security forces. In April, a CSD officer was taken hostage by a group of Vietnamese at the High Island Detention Centre and, in May, rioting broke out at the Whitehead Detention Centre. Both incidents occurred before scheduled movements of VMs. Police escorted 6963 VMs on board 60 flights back to Vietnam in the Orderly Repatriation Programme.
Bomb Disposal
The Explosive Ordnance Disposal (EOD) Bureau rendered safe more than 9 462 explosive devices during the year. These items included home-made bombs, pyrotechnics and unexploded items of ordnance. The ordnance items were recovered mainly from excavations on building sites.
Bureau members gave presentations to the Canadian Explosives Technicians conference in Canada and the International Association of Bomb Technicians and Investigators in the USA. The bureau has been re-equipped with specialised EOD vehicles and additional equipment to maintain its readiness for full operational deployment.
Police Dog Unit
The purpose-built facilities of the Police Dog Unit's training centre and headquarters provide a comprehensive training programme for different dog-handling disciplines and veterinary services for its some 100 dogs.
The unit's primary commitment to watch and ward duties is largely dependent on the German Shepherd and Rottweiler breeds, supplemented by the odd Doberman and one exceptional Bull Mastiff. Daily deployment of these general purpose patrol dogs has been rationalised during the year to provide each police district with a team of four and ensure a more equitable distribution of resources amongst urban commands. The anti-crime role of police dogs has been further enhanced by the introduction of mobile, emergency response capabilities in Kowloon West and New Territories North Regions.
Labrador Retrievers and Springer Spaniels are trained in different aspects of search work and are always available on demand from the unit's operational base at Kai
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Tak International Airport. Bred as gun dogs, they have traditionally proved their worth in support of searches for dangerous drugs, explosives and firearms and 1996 was no exception.
In January, the unit conducted its first annual police dog trials in novice and open categories. The event was well-attended and had raised awareness of individual skills through healthy competition amongst all handlers.
Traffic
The government amended regulations to extend the requirement for the compulsory fitting and wearing of seat belts to include the rear seats of private cars, and any middle front seats in private cars, taxis, light buses and goods vehicles. The new requirements took effect on June 1, 1996.
Since the enactment of the Road Traffic (Amendment) Bill 1995, which empowered the Police to demand breath, blood or urine samples from motor vehicle drivers for analysis of alcohol level, the number of persons identified to have been driving under the influence of alcohol saw a dramatic upward trend and a tenfold increase in prosecutions. Stringent enforcement action and increased public awareness should help reduce accidents associated with drink driving.
Red Light Cameras, which aim to secure a reduction in accidents caused by offenders at red traffic lights, were introduced in 1993 as a joint project between the Police and Transport Department. In 1996, additional sites were identified along the Light Rail Transit corridor, which were considered accident black spots. Plans for further expansion of the use of red light cameras in the urban areas, along with an automated prosecution system, are also under active development.
Vehicular traffic to and from China, mainly heavy goods vehicles, continued to rise during 1996. The proliferating cross-border traffic, coupled with increasing traffic population, posed serious congestion problems in the northern and western parts of the New Territories. With a view to maintaining traffic flow in an emergency situation, Police in the New Territories, in conjunction with Transport Department, have developed contingency plans and procedures to tackle congestion at various locations, particularly along Tuen Mun Road.
The Traffic Surveillance and Information System (TSIS) is an inter-departmental project involving the Police, Highways and Transport Departments. The system is being designed to provide close circuit television (CCTV), variable message and overhead gantry signs as well as an automatic incident detection system for both Tuen Mun Highway and the Tsing Ma Control Area which covers the access roads and bridges to the new airport. The system is expected to be fully operational in 1998. A feasibility study is currently under way to install a TSIS for Tolo Highway.
The radio system for traffic police, which had been in service since 1982, was replaced by a new system in 1996. The new radio system provided an improved infrastructure, with new hilltop/tunnel repeaters as well as motorcycle and portable radios. Radio coverage for traffic police including short-range, point-to-point, expressways and tunnels have all been enhanced to meet increasing operational requirements. The system cost $98.4 million.
During 1996, there were 14 390 traffic accidents involving casualties, representing a decrease of 2.8 per cent against the previous year. The number of fixed penalty tickets
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for moving offences increased by 4.4 per cent compared with 1995. Police and traffic wardens issued 1.7 million tickets for parking offences during the year, representing a decrease of 11.5 per cent when compared with the 1.92 million tickets issued in 1995. These decreases can be attributed to increasing congestion which caused the diversion of more police resources to traffic control rather than enforcement.
Police Licensing Office
The Commissioner of Police, through the Police Licensing Office, is the Licensing Authority for various licences and permits. As the Societies Officer, he also accepts notification of the establishment of local societies.
On June 1, 1996, the Watchmen Ordinance was repealed and replaced by the Security and Guarding Services Ordinance, aimed at improving the security and guarding services. In all, 56 663 applications for the Security Personnel Permit were received.
During the year, a total of 1 052 notifications of public meetings and processions and 1 089 applications for lion dance permits were received. The revised procedures and higher threshold for notification that came into effect with the commencement of the Public Order (Amendment) Ordinance in late 1995 worked smoothly and there was only one appeal against conditions set by Police to ensure public safety and public order. The office also processed 11 applications for pawnbroker licences, 43 for massage establishment licences and 48 for temporary liquor licences.
A total of 174 persons applied to possess firearms for competition or target shooting and a total of 1 843 firearms licences were granted in 1996. During the year, a review of the Firearms and Ammunition Ordinance (Chapter 238) was completed. The Firearms and Ammunition (Amendment) Bill 1996 was introduced into the Legislative Council. It aims to improve the existing licensing framework to ensure that licensed firearms are used safely.
In 1996, 1 052 societies notified their establishment and none was dissolved. A total of 7 597 have provided notification of their establishment.
Marine Police
The Marine Region was reorganised into two new districts - Marine Outer Waters District and Marine Port District - in 1996.
Major construction programmes on Chek Lap Kok, Lantau and the North-West New Territories during the year, coupled with the increasing number of river traders from China, contributed to the continuous growth of sea traffic and consequent policing commitment in the harbour and the western waters of the territory. Traffic flow in the harbour improved as a result of combined 'Rule of the road' operations with Marine Department designed to make correct use of fairways.
Shark prevention measures were installed at all gazetted beaches in Sai Kung to protect swimmers. Environmental concerns, particularly on the use of explosives or toxic substances to capture fish, were accorded a high priority. This led to stepped-up checks on vessels carrying live fish and the seizure of 388 kg of explosives.
As a result of stringent enforcement action and close liaison between Marine Police and their counterparts in the adjacent provinces of China, smuggling activities involving speedboats, particularly dai feis and chung feis, continued to drop during
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the year. Smuggling of vehicles and other contraband into China remains a problem and containers are now the favourite transportation method. Five new craft specially built to replace the ASTF dai feis are expected to go into service in late 1997 or early 1998.
The Marine Police continued to play an important role in combating illegal immigration from China. During the year, 1 554 people were apprehended when trying to sneak in by sea, compared with 2 410 in 1995.
The majority of arrivals originated from Haifeng, Dongguan and Taishan in Guangdong Province. Economic incentives and family reunion continued to be the major motivating factors behind illegal immigration. Mirs Bay and Deep Bay remained popular crossing points because of the short distance to the Hong Kong coastline. To evade interception, some chose to come by motorised sampans from the Chinese islands of Wailingding and Guishan just south of Hong Kong.
During 1996, a total of 576 Vietnamese migrants arrived in the territory by sea on 50 vessels. Of these, 495 elected to have their vessels refuelled and reprovisioned and to continue their voyage.
Public Relations
The Good Citizen Award Scheme and the Good Citizen of the Year Award Scheme remained effective vehicles for gaining public support in the ongoing fight against crime. The schemes have run successfully since their introduction in 1972 and 1984 respectively, as a long-standing project jointly administered by the Police and Hong Kong General Chamber of Commerce. So far, the schemes have given recognition to a total of 2 616 public-spirited citizens.
The police telephone hotlines, as in previous years, were productive throughout the year. The general hotline 2527 7177 and the Organised Crime and Triad Hotline 2527 7887 registered 7 995 and 526 calls respectively in 1996, which led to positive results and arrests.
Another favourite avenue for crime reporting, the Crime Information Form, continued to provide useful information. Altogether, 2 189 completed forms were received, resulting in arrests.
One of the most successful bridges between the police and the community has been a youth organisation Junior Police Call (JPC) set up in 1974. At the end of 1996, the JPC had 750 946 members and leaders. The JPC helps to guide its members towards becoming responsible and law-abiding citizens.
Apart from participation in fight-crime activities and crime-prevention campaigns, JPC members are provided with a wide range of sports, recreational and educational programmes, organised to foster a positive attitude towards a healthy life. In conjunction with Radio Television Hong Kong (RTHK), the Force produces a weekly radio programme Voice of JPC, which provides a good forum for the co- ordination and promotion of youth activities.
The Force also produces, jointly with RTHK, three television programmes, namely, Police Magazine, Crime Watch and Police Report. These programmes, broadcast in Cantonese and English, appeal to the public for information on undetected crimes, issue advice on crime prevention, road safety and special traffic arrangements. Special features highlight current crime trends, topical issues of social and legislative concern
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▲ Officers from the Correctional
Services Department practise moves during training.
RIGHT: New Immigration
Department officers march past the saluting base during their annual passing out parade.
| PREVIOUS PAGE: The first female cadet in the Government Flying Service, Miss Yan Suk-yin, 25, stands proudly in front of a helicopter after joining up in July 1996. In September, she began a one-year helicopter training course in Bristol, UK.
BY 8882
An auxiliary police woman directs
traffic in Gloucester Road, Admiralty. The Royal Hong Kong Auxiliary Police Force was established in 1914 and mustered about 5 300 volunteers from all walks in 1996, 580 of them female. An average of 644 officers turned out each day. Their duties included crime prevention, crowd control, traffic control, operation duties, communications and community relations. LEFT: A Special Duties Unit officer from the Royal Hong Kong Police Force water assault team makes a most unusual sight as he bursts out of the water ready for action.
Firemen confront the 'enemy' as they extinguish a blaze in training. RIGHT: Real-life disaster, as a fireman helps an injured person out of an office building on Nathan Road, where 40 people died in November during Hong Kong's worst fire in commercial premises for half a century.
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to the general public, and various facets of police work. The programmes score a consistently high audience rating.
The Radio Traffic Studio set up in the Police Public Relations Branch (PPRB) came into operation in May, delivering radio traffic bulletins to the public through RTHK during morning rush hours. The service has been extended to cover the evening peak hours in July. People are thus informed of the latest traffic conditions and other special traffic arrangements at peak times.
Visits to the Force are also encouraged. During the year, the PPRB handled a total of 73 local and overseas visits involving 969 visitors to the Force. The Police Museum, police stations and training establishments remained favourite spots for the visitors.
Information on crime, police action and activities are disseminated to all news organisations in the territory 24 hours a day through the PPRB. Staff seconded from the Information Services Department deal with press enquiries and assist media coverage at major scenes of crimes and incidents. During the year, they organised 222 press conferences and briefings, attended 135 incidents, and issued 3 449 press releases. The PPRB also produces a fortnightly newspaper, OffBeat; monitors media coverage of police and criminal activities; and promotes various campaigns.
Planning and Development
The target completion date of the new airport Police station at Chek Lap Kok is March 1997. The new Tung Chung Police Station will also be completed around mid- 1997 to serve some 150 000 residents of the new town.
Work on upgrading accommodation at Police Headquarters continued. The 32- storey Arsenal House, West Wing, was completed in October. Plans are being drawn up for a total refurbishment of the 20-storey May House.
Planning has been completed for a new in-service training complex at Aberdeen, which will house the Detective Training School and other in-service training facilities. The new Marine Police Regional Headquarters at Sai Wan Ho officially opened in November. A new Police post opened at Kat O (Crooked Island) at the end of the year, replacing the rented village house which had been used for more than 30 years. The new three-storey building is the highest on the island.
During the year, work began to link thermal imagers mounted at strategic locations along the Hong Kong-China land border to Police operations rooms by means of fibre-optic cables. This will enable movement along the border at night to be monitored from these operations rooms, thereby improving the effectiveness of the Field Patrol Detachment in detecting and preventing illegal immigration.
The year also saw the completion of a $55-million project to enhance the 35- kilometre border fence, which now presents a formidable obstacle to would-be illegal immigrants.
The need to upgrade Police facilities in the New Territories to match the pace of development over recent years has been recognised. Planning began during the year for a new district headquarters and divisional Police station at Tin Shui Wai, while major refurbishment works are being carried out at nine Police stations in the New Territories. A new regional headquarters for the New Territories South Region is also planned.
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Planning is also well advanced for a new vehicle pound and vehicle examination facility to be built near Tai Po. This facility will enhance the ability of the Traffic Police to enforce legislation regarding the construction and use of vehicles, and will also enable obstructions to be more rapidly removed from major roads in the area. It will be the precursor of similar facilities elsewhere in the New Territories and Kowloon.
The arming of woman police has also had an impact on the Force's building programme. The decision to attach woman officers to the PTU for the first time in its history necessitated a programme to provide suitable accommodation for these officers.
The disposal of former military sites in consequence of the Defence Lands Agreement, concluded in 1994, has also created a need for new facilities for the Force. Planning for a new depot for the Field Patrol Detachment to replace its existing accommodation at the former Burma Lines began during the year, and planning continues for an urban close-quarters battle range at Man Kam To to replace the former military facility at Nim Wan. The acquisition of military ranges for use by the Force is also being pursued.
A comprehensive reappraisal of the report room complex in Police stations is being undertaken in conjunction with an existing project to upgrade all report rooms, both technologically and physically, making them more user-friendly to the public. Micro- computers are replacing the old books and ledgers that used to crowd the report room counter. Interview rooms are being specially designed, furnished and equipped for the purpose. Bright lights, bright colours, comfortable furniture and suitable amenities are being provided.
With a view to putting more officers on the beat rather than guarding Police stations and watching detainees in cells, two projects are being developed: the automation of station security in the use of smart-card access, automatic barriers and CCTV monitoring; and the installation of an intercom and buzzer system in every Police cell, linked to a console beside the duty officer's desk.
The Auxiliary Police Force has temporary headquarters at the former military establishment of Blackdown Barracks. New, purpose-built premises in Kowloon Bay are scheduled for completion in June 1997.
Planning went ahead for several facilities to cater for the rapid infrastructural development in the territory. These included a new Kowloon West Regional Headquarters complex and a new Mong Kok District Headquarters and Tai Kok Tsui Divisional Police Station on the Kowloon West Reclamation.
A Police Property Steering Group, comprising representatives from all relevant government branches and departments, was formed to monitor the Police building projects. One of its major tasks is to formulate a comprehensive property strategy for the Force for the next 10 to 15 years.
Communications
Interactive voice-response systems are being installed in the PPRB, the Licensing Office, the Certificate of No Criminal Conviction Office and the Force Recruitment Group to help handle public enquiries. To enhance the quality of the 999 hotline service, a bilingual recorded message has been installed. When all operators are busy,
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it will assure users of the 999 hotline that they have reached the correct number and their call will be answered as soon as an operator is available.
A program to replace all the police analogue cellular phones by digital phones has been completed. A sophisticated service centre for the repair of thermal imaging night observation equipment was set up in the third quarter of 1996. A quality management system is being planned with reference to the International Standard (ISO 9000) to ensure that the best service can be delivered. A new digital radio network has been implemented for the Traffic Police. This will provide secure communications with better and wider radio coverage and less interference.
The planning and development of communication needs for other major projects is proceeding. They include the mini-firing ranges at Kowloon East Operations Base, the alarm and intercom system for 427 detention cells in 50 police stations, a secure communications system for VIP Protection Unit and Witness Protection Unit, the replacement of the Mass Transit Railway District radio control facilities, the police communications systems at Chek Lap Kok airport and the new Marine Police communications system.
Information Technology
Development and implementation of the systems under the Force's Information Technology (IT) Strategy was in full swing in 1996. Three more systems under the IT Strategy the Personnel Information Communal System, the Computer Assisted Fingerprint Identification System and the Police Email Network - went live in 1996. These systems have greatly improved the efficiency of personnel administration, the effectiveness in the fight against crime and the timeliness in dissemination of information within the Force.
The development of the Formation Information Communal System (FICS), which automates day-to-day operations including case processing at District and Divisional levels, has been completed. Rolling out of FICS started in November and will be completed by November 1997.
Site preparation work for the installation of networks, servers and workstations has been completed in most Police Stations. These form part of the Police Data Communication Network which will interconnect all information systems within the Force as well as some external systems from other government departments such as driving and vehicle licence records, identification cards and court cases documentation. In addition, the development of the Regional Information Communal System, the Traffic Operations Management System, the Leave Recording System and the Reference Material System are in progress.
Transport
The Police fleet comprises 2 400 vehicles ranging from 250 c.c. motorcycles to large vans and lorries, plus a range of specialist vehicles such as mobile command units, exhibition buses and Saxon armoured personnel carriers. A programme to improve the working environment for patrol officers has commenced with a view to replacing the majority of front-line vehicles over the next five years with vehicles incorporating up-to-date features. The emphasis is on technical improvements in order to reduce driver fatigue and improve safety. These features will include air-conditioning, power
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steering, anti-lock braking, better seats and seat belts. More conspicuous markings and up-to-date warning systems will also be fitted.
Service Quality Wing
The Service Quality Wing, established in May 1994, has three branches: Performance Review, Research and Inspections and Complaints and Internal Investigations.
The Performance Review Branch develops service quality and promotes efficiency in all areas of the police service. As part of the Force's service quality initiative, an independent public opinion survey was commissioned to examine the quality of Police services. The results released in April were very encouraging: more than 2 000 respondents were interviewed and 78 per cent thought the Force's overall performance worthy of praise. Only 3 per cent thought poorly of it. Throughout the year, top management was engaged in a structured process of consultation with all members of the Force, including civilian and Auxiliary officers, in the development of the Force Vision and Statement of Common Purpose & Values which will focus on the Force's service quality commitment.
The Research and Inspections Branch monitors inspections within Police regions and conducts thematic studies throughout the Force. The emphasis is directed at developing an effective, efficient and economic service which meets the needs of the public. It also carries out research into a variety of issues that may have an impact on strategic planning and on Force policy.
The Complaints and Internal Investigations Branch comprises the Complaints Against Police Office and the Internal Investigations Office. The branch investigates complaints against police officers, including civilian staff and auxiliary police officers, investigates serious disciplinary cases and conducts supervisory accountability studies.
Complaints Against Police
The Complaints Against Police Office (CAPO) investigates all complaints from the public concerning the conduct and behaviour of members of the Force. The results are monitored and reviewed by the Independent Police Complaints Council (IPCC), which is an independent body comprising non-official members appointed by the Governor.
In 1996, 3 315 complaints were received. This represented a decrease of 133 cases, or 3.9 per cent compared with 1995. Over 94.1 per cent of complaints in 1996 came from people either involved with, or subjected to, constabulary action. Complaints of assault, neglect of duty and conduct/manner made up the majority of cases, or 77.1 per cent of total complaints. Investigations into 3 419 cases were completed and endorsed by the IPCC. The substantiation rate for complaints fully investigated was 13.6 per cent. The number of cases classified as Withdrawn or Not Pursuable was 2 092, representing 61.2 per cent of the total. Altogether, 744 cases or 21.8 per cent of all complaints were dealt with through an Informal Resolution Scheme. A total of 23 police officers were disciplined and 14 charged with offences resulting from the complaints.
The Complaints Against Police Office is also responsible for advising Force members on how complaints can be prevented. Throughout the year, lectures and seminars on complaint prevention were organised for junior police officers, with the
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aim of improving public relations and reducing conflict situations. A Complaints Prevention Committee, made up of various ranks in the Force, was formed in 1992 to recommend on how complaints may be prevented and how its recommendations may best be implemented. The first Courteous Police Officers Selection Scheme was introduced to foster a culture of courtesy and tactfulness. It was completed in February 1996 and the results were encouraging.
In close consultation with IPCC, the CAPO introduced a range of measures to further enhance the transparency and fairness of the existing complaints system. These included the installation of closed circuit televisions, video or tape-recording facilities in CAPO report rooms, as well as interview rooms; a scheme for IPCC members to interview witnesses; a scheme for IPCC members to observe CAPO investigations and enhanced publicity on the monitoring role of IPCC. In addition, a comparative study of complaints systems in other jurisdictions and an independent review of CAPO investigation procedures, IPCC's monitoring mechanisms and interface with CAPO were carried out. This produced some 50 recommendations for improving the complaints system. By the end of 1996, 22 recommendations had been implemented and the implementation of other recommendations was under way.
Civilian Staff
Civilians play a vital role in the Force and have a wide variety of functional duties to complement the work of the disciplined staff. Regular reviews are conducted to identify posts currently occupied by disciplined officers for civilianisation in order to release the disciplined staff for constabulary duties. The civilian establishment in the Force consists of 58 different grades, 30 of which are General Grades providing executive, accounting, clerical, secretarial and other general support for the administrative functions of all formations. The rest includes professionals, supplies staff, interpreters, communications and computer specialists, armourers, traffic wardens, cooks and workmen.
Training
Most training is designed and provided by the Force using its own resources, and when necessary, overseas training is also available. Newly-recruited constables and inspectors attend a 27-week and a 36-week residential course, respectively, at the Police Training School at Wong Chuk Hang, an 18-hectare, purpose-built campus. All trainees are instructed in foot drill, firearms, physical fitness, swimming and lifesaving, self defence and first aid, and are required to reach similar standards regardless of rank. They also receive training for tactics in potentially dangerous situations, which includes instruction in various strategies and the use of physical and firearms defensive skills. They must also study criminal law, police and court procedures as well as social matters. Inspectors are required to demonstrate wider knowledge on these subjects. They also study management topics and their leadership and supervisory skills are developed throughout the initial training course.
After initial training, constables carry out duties under a tutor and attend a day of instruction per month during the first two years of their service, while inspectors receive familiarisation training on-the-job and attend a further two-week training course in their fifteenth month of service. Most officers are sent to the Police Tactical Unit in their second or third year of service where they are taught internal security
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roles and where inspectors' leadership and management skills are further developed. Promotion and refresher training are given later.
A revised continuation training course for experienced Station Sergeants was introduced in October 1996. The three-week course replaces two existing courses and brings together officers from all units to consider current developments and problems within and outside the Force.
In-service management training is provided at three levels of command courses run by the Higher Training Bureau. All inspectors attend the Junior Command Course when they have served five years in the rank. Chief inspectors and superintendents attend the Intermediate and Senior Command Courses, respectively, within a year after promotion to each rank. Further training is given to officers who undertake specialist duties.
Legal and social changes in the territory, the Commissioner's policy of service quality and a commitment to provide as much accreditation of police training as possible led to reviews of training for Detectives, Constables, Inspectors, and the Junior, Intermediate and Senior Command Courses. The revised training courses are being implemented.
In conjunction with the Civil Service Training and Development Institute, the Force offers its officers language courses in English and Putonghua. Officers of all ranks are encouraged to attend educational and training courses to enhance their knowledge and skills in their off-duty hours. Partial or full reimbursement is provided as an incentive, and time off is granted where necessary for studies and examinations. Opportunities are also available for officers to receive development and vocational training courses overseas and $7 million was set aside for this purpose in 1996.
Two new training activities introduced in 1994 were further developed in 1996: revolver training for woman police officers and refresher training in cardiac pulmonary resuscitation (CPR) for most uniform branch officers. Woman police recruited since January 1995 have received the same revolver training as their male colleagues during initial training at the Police Training School. At December 31, 1996, 149 woman recruits and 41 woman probationary Inspectors had successfully trained on revolver shooting. Training in CPR is provided to officers during initial training but their skills deteriorate with time. A small team of specially-trained and equipped instructors visits police units so that all uniform branch officers can receive one day of refresher training every three years.
Throughout the year, emphasis continued to be placed on firearms training to enhance officers' ability to deal with armed confrontations. Tactics training was further developed in 1996 and a long-term firearms and tactics training strategy has been initiated.
Recruitment
The number of applications for Inspectorate posts continued to rise from 3 045 in 1995 to 3 268 in 1996, representing an increase of 7.3 per cent. Of these applicants, 155 were appointed as Inspectors. Another 58 in-serving officers were promoted from the ranks.
Recruitment at Constable rank remained satisfactory with 868 recruits taken on strength out of a total of 10 396 applicants. Satisfactory recruitment saw the strength
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of the Force grow by 126 or 0.46 per cent disciplined officers and 105 or 1.8 per cent civilian staff, as against the strength of 27 533 and 5 873 respectively in 1995.
Promotions
Promotion prospects in the Force remained good at most levels. In 1996, 46 officers were promoted to the rank of Senior Superintendent and above. Sixty-four Chief Inspectors and 78 Senior Inspectors were promoted to Superintendent and Chief Inspector respectively, 14 Station Sergeants were promoted to Inspector, 50 Sergeants were promoted to Station Sergeant and 336 Police Constables to Sergeant.
Within the civilian grades, 57 general grade and 41 departmental grade officers were promoted.
In 1996, some 310 disciplinary officers retired from the Force, 35 were invalided out, 287 resigned, 55 were transferred to other departments, and 39 were either dismissed or had their services terminated. Likewise, 455 general grade, and 221 departmental grade civilian staff left the Force for retirement, transfer to other departments or termination of service by completion of contract or dismissal.
Awards
The Colonial Police Long Service Medal was awarded to 1 035 officers after 18 years of continuous police service; 318 officers were awarded the 1st Clasp to the Medal after 25 years' service and another 355 officers were awarded the 2nd Clasp after 30 years' service. In addition, five officers were awarded the Queen's Police Medal for Distinguished Service and 39 officers the Colonial Police Medal for Meritorious Service. The Queen's Gallantry Medal was awarded to five officers, the Queen's Commendation for Brave Conduct to three officers and 19 officers were awarded the Governor's Commendation. Another seven officers received awards from the Royal Humane Society. Among the civilian officers, one officer was awarded the Imperial Service Medal, three were awarded the Most Excellent Order of the British Empire, 95 the Long and Meritorious Service Certificate and 24 officers received the Long Service Travel Award.
Welfare
The Personnel Services Branch provides a wide range of support services to Force members and their families, in the areas of personal and family welfare, sickness, psychological consultation, assistance on retirement, sports and recreation, catering, collective bargain purchases and the allocation and up-keep of departmental quarters for police officers.
During the year, staff of the Personnel Services Branch conducted 6 012 casework interviews and made 7 380 visits to sick and injured officers in hospital or at their homes. Family life education continued to play an important part in the welfare programme, with emphasis on good parental guidance to the children.
Psychological counselling service was provided to all members of the Force and their families to help reduce their stress arising from work and /or personal affairs. Stress management training was also offered to new recruits.
The Police Catering Division continued to monitor canteens in Police stations to ensure the meals served were of good quality and reasonably priced. It also provided
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catering support at emergency turn-outs, such as disturbances at Vietnamese Migrant camps/detention centres, and for major operations and crowd control duties.
The Police Welfare Fund has been the major source of finance for all welfare activities within the Force. Its income mainly comes from donations of the general public and hire of police service. In all, 1 737 children of regular and auxiliary police officers were awarded bursaries from the two police education trusts to pursue further education.
Force Housing
The Force manages a total of 11 875 quarters, of which 10 905 are for Junior Police Officers and 970 are for Inspectorate officers. These include 429 newly-built quarters at Wong Tai Sin. As a result of redevelopment of sites in Hollywood and Canton Roads, 808 new quarters at Chai Wan and Ngau Chi Wan will be provided to the Force as replacements. Construction is under way and scheduled for completion by early 1997. In 1995-96, the Force was again allocated 458 units under the Disciplined Services Quota of the Government Public Housing Scheme. Alternative sources of accommodation which remain open to eligible junior police officers include the Home Purchase Scheme, Housing Loan Scheme, Home Ownership Scheme and Home Purchase Loan Scheme.
The policy to provide housing for all eligible married police officers, including those in the Inspectorate and Superintendent cadres, has continued to be progressively implemented. Every effort is being made to acquire more quarters of higher grading, rather than opting for sheer numbers.
The refurbishment programme aims at improving the overall living condition of police officers. Since the introduction of the scheme in 1987, 1 874 quarters have been refurbished, resulting in a marked improvement in the structural condition and standard of these old residences.
Royal Hong Kong Auxiliary Police Force
The Royal Hong Kong Auxiliary Police Force is manned by volunteers from all walks of life and has a proud history dating from its establishment in 1914. Traditionally, the role of the Force was to provide manpower support to the regular police during emergencies.
Since 1973, depending on the overall policing commitments and numbers of the regular police, the auxiliary police have been called upon to supplement their regular counterparts in day-to-day policing. In 1996, the average daily turnout was 644 officers. Their duties included crime prevention, crowd control, traffic control, operation duties, communications and community relations. The strength of the Force at the end of the year stood at 5 373, of whom 10.8 per cent were female officers.
Independent Police Complaints Council
The Independent Police Complaints Council's main function is to monitor and review investigations by CAPO of the Royal Hong Kong Police of public complaints made against the police.
The council is an independent committee whose members are appointed by the Governor. Other than the Chairman, the council comprises two Vice-Chairmen and
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no fewer than eight non-official Members, with the Ombudsman, or his representative, serving as an ex officio member.
During the year, the council endorsed 3 419 complaint investigations and interviewed 11 witnesses in seven selected cases. Members participated in 26 scheduled and surprise visits to observe CAPO investigations under a trial IPCC Observers Scheme introduced in April 1996.
A review of CAPO's procedures and a comparative study of the police complaints systems in selected overseas jurisdictions were completed during the year. The associated recommendations to improve the police complaints system in Hong Kong will be implemented in phases.
Customs and Excise
The Customs and Excise Department is primarily responsible for the collection of revenue and the prevention of revenue evasion on dutiable goods, the suppression of illicit trafficking in narcotics, the prevention and detection of smuggling, and the protection of intellectual property rights. It has an establishment of 4 273.
The department is also responsible for enforcing legislation to safeguard the integrity of Hong Kong's trade (see also Chapter 7).
Revenue Collection
The department collects revenue from four categories of dutiable commodities: alcoholic beverages, tobacco, hydrocarbon oil and methyl alcohol. In 1996, the department collected $8.15 billion in revenue from dutiable commodities, compared with $7,788 million in 1995, an increase of $362 million.
The department also assesses the taxable values of motor vehicles under the Motor Vehicles (First Registration Tax) Ordinance for the purpose of levying first registration tax. In 1996, the Motor Vehicles Valuation Group registered a total of 65 motor traders and assessed the provisional taxable value on 40 498 vehicles.
Prevention of Revenue Evasion
Cigarette smuggling continued to be a major target of the department's enforcement action. In 1996, the department processed a total of 19 676 cases and seized 406 million cigarettes with a duty potential of $272 million.
The Anti-Cigarette Smuggling Task Force established in 1994 continued to take effective action against cigarette smuggling. Seizures made by the Task Force accounted for 77 per cent of the total cigarette seizure in 1996. In August, the Task Force detected Hong Kong's second-largest cigarette smuggling case and seized 97 million cigarettes with a retail value of $126 million. The department also maintained close liaison with the tobacco industry and launched a reward scheme to encourage information from the public about cigarette smuggling. Close contacts were maintained with local and overseas enforcement agencies for the exchange of intelligence on cigarette smuggling activities.
The illegal use of industrial diesel oil by road vehicles and the unauthorised removal of markers and colouring substances from industrial diesel oil are also major targets of the department's enforcement action. A Diesel Oil Enforcement Division was set up in May 1996. Its main task is to investigate syndicates involved in illegal activities
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concerning diesel oil. Five major oil companies co-operated with the department to sponsor the Oil Industry Reward Scheme. The scheme, introduced on April 1, 1996, offers monetary awards to members of the public who provide information concerning illegal imports and distribution of diesel oil. In 1996, the department took action against six plants used for removing the markers and colouring substances from industrial diesel oil and against 302 illegal diesel oil outlets. It also detected six smuggling cases. A total of 1.47 million litres of diesel oil with a duty potential of $4.2 million was seized and 1 942 people were arrested.
Anti-narcotics Operations
The department continued to take vigorous enforcement action to prevent and suppress unlawful trafficking in dangerous drugs. It maintained a high level of vigilance against the illegal import and export of drugs, and continued its war against the illegal manufacture, distribution and street-peddling of drugs. The Customs Drug Investigation Bureau is the department's major investigative arm. Its main functions are to conduct investigations and surveillance on cases involving illegal trafficking or use of drugs. The department co-operates closely with the Hong Kong Police and overseas drug enforcement agencies in the exchange of intelligence and in the arrest and extradition of fugitive drug criminals.
In 1996, the department cracked 51 major trafficking cases, with the neutralisation of 12 heroin attenuating and 12 packing centres. The department seized 81.04 kilograms of heroin, 5.82 kilograms of raw opium, 6.68 kilograms of prepared opium, 7 796.12 kilograms of herbal cannabis, 27.01 kilograms of cannabis resin, 4.74 kilograms of cocaine and 4.58 kilograms plus 12 110 tablets of Ecstasy. In addition, 11 569 tablets of psychotropic drugs were seized. A total of 1045 people were arrested for drug-related offences.
Recovery of Drug Trafficking Proceeds
The department enforces the Drug Trafficking (Recovery of Proceeds) Ordinance. This is an effective weapon which enables the department to trace and seize assets derived from drug trafficking and to conduct investigations into money laundering.
In 1996, it obtained two court orders and restrained assets worth $2.3 million. Assets valued at $170,000 were confiscated.
Control of Chemical Precursors
On January 1, 1996, the department extended its licensing control from three to 24 chemicals which may be used in the illegal manufacture of narcotic drugs and psychotropic substances.
At international level, the department had several successes in preventing the diversion of controlled chemicals for the manufacture of narcotic drugs and psychotropic substances. These successes were largely the result of co-operation with overseas law enforcement agencies.
Border Control
Cross-border vehicular traffic passing through the control points at Lok Ma Chau, Man Kam To and Sha Tau Kok reached record levels with a daily average of 24 324
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vehicles compared with 23 202 in 1995. An average of 74 831 passengers arrived by land each day, including those by train, 27 409 arrived by sea and 31 903 by air.
To cope with the ever-growing number of passengers and increasing traffic, the capacity of customs facilities is being expanded at entry and exit points. The completion during the year of Stage III of the Lo Wu Rail Terminal has eased congestion caused by the large numbers of people travelling between Hong Kong and China. Handling capacity at Lo Wu is now 8 188 passengers an hour. Planned customs facilities at the new terminal at Kowloon Railway Station will more than double the department's capacity to handle through-train passengers. Planning for additional processing facilities at Lok Ma Chau was also completed during the year.
Smuggling
In 1996, the department detected 285 smuggling cases under the Import and Export Ordinance, arrested 273 persons and seized goods worth $373 million. Smuggling between Hong Kong and China remained rampant. In 1996, 59 smuggling cases were detected at the land border, and goods valued at $51,505,892 were seized.
Contraband commonly smuggled to China ranged from electronic products such as mobile phones, computer hardware and laser disc players to left-hand drive vehicles and vehicle spare parts. The most common method of smuggling was by container. The most popular items for inbound smuggling were antiques, cigarettes and diesel fuel.
Smuggling by high-powered speedboats remained at a low level. The department's strategies to control smuggling were reviewed during the year. Success remained largely dependent on good intelligence, modern technology and co-operation with other law enforcement agencies.
Strategic Commodities
In order to prevent Hong Kong from being used as a conduit for the proliferation of weapons of mass destruction and to ensure its continued access to the high- technology products of advanced countries, the department works closely with the Trade Department and other agencies to control the trade in strategic goods. In 1996, the department investigated 343 cases and prosecuted 250 defendants, resulting in the imposition by court fines amounting to $3.6 million. Strategic goods valued at $18.9 million including inert bombs, rocket fuel, telecommunication equipment and chemical weapon precursors were seized, of which $7.5 million-worth was confiscated.
Intellectual Property
The department is responsible for enforcing laws to protect copyright and trade marks. Protection is provided through the Copyright Ordinance and the Trade Descriptions Ordinance which extends to trade marks registered under the Trade Marks Ordinance.
To enforce these laws, the department investigates complaints about infringement and takes action against piracy and counterfeiting. Close liaison is maintained with copyright and trade mark owners, their legal representatives and intellectual property rights organisations. The department continued to strengthen contacts with overseas agencies in its fight against international trade in pirated and counterfeit goods. Joint
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operations with the Chinese Customs took place to prevent the smuggling of pirated and counterfeit goods across the border.
The department continued to take vigorous action against the sale of pirated music CD, video CD and CD-ROM, and counterfeit watches, leather goods and clothing. Operations were conducted at hawker stalls, retail shops, storage places, distribution centres and the border control points. In 1996, the department seized pirated goods worth $48.6 million and prosecuted 1 432 persons under the Copyright Ordinance. It also seized counterfeit and falsely labelled goods valued at $151.6 million and prosecuted 794 people under the Trade Descriptions Ordinance. Prosecution results in 1996 indicate that the courts are treating copyright and trade mark offences more seriously than in previous years.
In collaboration with other government agencies, the department sought stronger and more comprehensive legislation. The Intellectual Property (World Trade Organisation Amendments) Ordinance was enacted in May 1996 to enable Hong Kong to fulfil its international obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights of the World Trade Organisation to protect intellectual property rights. The new legislation empowers the department to investigate local people and organisations engaged in copyright piracy outside Hong Kong and to detain imported pirated and counterfeit goods so as to enable the rights holders to take civil proceedings against the importers.
World Customs Organisation
Hong Kong is a member of the World Customs Organisation (WCO) (established as the Customs Co-operation Council). The WCO aims to facilitate international trade by securing harmony and uniformity in customs systems world wide, through inter- governmental co-operation.
The department is active in WCO meetings and seminars, particularly those concerning customs enforcement and techniques. The WCO's Regional Intelligence Liaison Office for the ESCAP region has been based in Hong Kong since 1987 and works closely with the department. Officers of the department also assist in WCO training activities, both in Hong Kong and overseas.
The department hosted a regional seminar on enforcement of Intellectual Property Rights in January. Thirty-two delegates from 18 Customs administrations in the Asia and the Pacific Region attended the seminar, together with 20 representatives from the business community of Intellectual Property Rights Associations. The success of the seminar is indicative of the efforts which the WCO and individual Customs administrations and private sectors participants contribute in the international war against piracy.
In June 1996, the department hosted the 35th Session of the WCO's Policy Commission and the 87th/88th Council Sessions. About 300 delegates comprising heads and senior officials from 116 Customs administrations and nine international organisations attended the meetings. The conference reinforced Hong Kong Customs' international standing and Hong Kong's status as a separate Customs territory.
Performance Pledges
The department's third set of performance pledges was published in April 1996. Several new pledges were added covering Motor Vehicle First Registration Tax
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Assessment and enhanced targets in respect of factory registration and consignment inspections. The department met all its performance targets in 1996.
The department held quarterly meetings with its three customer liaison groups to review the general standard of services delivered to air cargo, sea cargo and dutiable commodities operators. By mid-1996, chairmen of all three groups were elected from the private sector. Several service improvements were implemented as a result of customers' recommendations.
The department formulated its own Human Resource Management Plan which is likely to result in further service improvement in the years ahead.
Independent Commission Against Corruption
The Independent Commission Against Corruption (ICAC) is independent of the civil service; its Commissioner is directly responsible to the Governor. It fights corruption through investigation, prevention and education, carried out through three functional departments: Operations, Corruption Prevention and Community Relations.
Operations
The Operations Department receives and investigates reports of suspected corruption under the Prevention of Bribery Ordinance, election malpractices under the Corrupt and Illegal Practices Ordinance, and ICAC-related offences under the ICAC Ordinance.
Of the 3 108 reports alleging corruption (including election-related reports) received in 1996, 1 673 concerned the private sector, an increase of 1 per cent compared with 1995. Another 1 304 reports were made against civil servants, an increase of 4 per cent. There were 131 reports against employees of public bodies, compared with 109 in 1995. It appears that the rise in corruption reports during 1992-94 has continued to level off.
In 1996, 2 214 corruption reports contained sufficient information for investigation to commence. The department's caseload was 1 159 at the end of the year with 393 persons prosecuted, and 61 cautioned for minor offences.
Corruption Prevention
The Corruption Prevention Department makes recommendations to eliminate opportunities for corruption that may exist in the government and the public sector. On request, it also advises the private sector on corruption prevention techniques.
The department studies new procedures or policies, and monitors the implementation of previous studies. It also gives corruption prevention advice through consultation and participation in a variety of committees and working groups. In 1996, the department completed 102 assignment studies and advised 146 businesses.
The studies done in 1996 covered many areas, including law enforcement, licensing, the letting and administration of contracts, purchasing and tendering, and personnel administration. Much work was done in association with the Airport Authority, which is responsible for some of the world's biggest consultancies and construction contracts. The Corruption Prevention Department strongly advocates open and competitive tendering in the government and the public sector.
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Other important work has involved reviewing government departments' management of attendance records and overtime claims by junior staff, particularly out-door staff. Controls are now in place and supervisors are aware of their responsibilities.
The department also advises through numerous committees and working groups. Significant work of this type in 1996 has been on reviewing the government's tendering arrangements, the performance of contractors on government construction projects, and in evaluating bids for new telecommunication licences to meet Hong Kong's ever-expanding needs.
Community Relations
The Community Relations Department educates the public against the evils of corruption and enlists community support to fight the problem. It also aims to promote higher ethical standards in social and business matters. It works through the mass media and personal approaches by its eight regional offices to different target audiences.
The department launched a business ethics campaign in 1994. Since then, over 60 per cent of 2616 listed companies, large private companies and trade/professional associations contacted have drawn up codes of conduct. Starting from mid-1996, the department took the campaign further by assisting these companies to promulgate their codes to staff via training. About 1 800 talks were given for 50 000 staff from these companies during the year.
The Hong Kong Ethics Development Centre set up under the auspices of the ICAC and supported by six major chambers of commerce continued to provide a full range of services free of charge, including training for staff, tailor-made consultancy service on systems control, and provision of reference materials.
To maintain a clean civil service, the department produced a guide book on corruption prevention for middle managers and a direct-mail product targeted at front-line officers. Follow-up seminars were also organised.
Promotion of youth ethics was also a major initiative during the year. A large-scale conference was held in March attended by more than 400 participants. The conference discussed strategies to enhance the ethical standards of young people in Hong Kong. To cater to the needs of various age groups, different products were developed for use by tertiary, secondary and primary schools. Moral education training was also extended to kindergartens through cartoon booklets.
Co-operation with China on the non-operational front continued. During the year talks were organised for 3 000 PRC officials visiting Hong Kong. The Commissioner led a delegation to visit the procuratorates in Beijing and Guangzhou in the autumn. ICAC officers also gave talks at courses in the new training centre of the Guangdong Provincial People's Procuratorate in Guangzhou.
Advertisements continued to be produced to educate the public on the evils of corruption and enlist their support.
International Co-operation
The commission continues to enhance international co-operation by liaison with other anti-corruption organisations and overseas law enforcement agencies.
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In April, ICAC officers attended the 17th Asian Organised Crime Conference in Los Angeles. ICAC delegates will attend the 8th International Anti-Corruption Conference, to be held in Peru in 1997.
In November, the ICAC hosted the 4th Regional Seminar on Corruption-Related Crime with representatives from law enforcement agencies in Australia, Brunei, Canada, China, India, Japan, Korea, Macau, Malaysia, Singapore, Sri Lanka, Thailand, and the USA, as well as local agencies. The seminar focused on the potential to promote further areas of co-operation in corruption investigation. During the year, the ICAC received 248 visitors from law enforcement agencies and other organisations in various countries.
In the course of investigation, Operations Department officers visited jurisdictions other than China on 44 occasions, and the commission assisted officers from overseas law enforcement agencies in their enquiries in Hong Kong on 12 occasions. Since 1988, following the establishment of a Hong Kong/PRC mutual assistance scheme, the Operations Department sent officers into China on 82 occasions, and assisted investigating officers from China in enquiries in Hong Kong on 86 occasions.
Checks and Balances
To minimise the possibility of any abuse of power, the ICAC has always been subject to a stringent system of checks and balances. An independent review committee appointed by the Governor in 1994 made several recommendations which have been accepted by the administration and adopted by the ICAC. In effect, the changes subject the ICAC to closer judicial supervision and give the various advisory committees a greater role in monitoring and supervising its work. All advisory committees are now chaired by non-officials.
At the policy level, the ICAC is guided by the Advisory Committee on Corruption, which comprises prominent citizens, with the Director of Administration, the Commissioner of the ICAC and its Head of Operations sitting as ex officio members. The committee meets quarterly to review the ICAC's overall policy and draws to the Governor's attention any matter relating to its organisation or operation.
Once begun, an investigation can be concluded only by a decision to prosecute made independently by the Attorney General, or on the advice of the Operations Review Committee (ORC), which has to be satisfied that the enquiry has been exhaustively pursued and merits no further investigative action. Membership of the ORC includes the Commissioner of the ICAC, the Commissioner of Police, the Attorney General, the Director of Administration, and some private citizens. The ORC receives and considers reports on current major investigations, all investigations over one year old and all bail cases of six months' duration or more. It may draw to the Governor's attention any aspect of the work of the Operations Department or any problem encountered by the Committee.
Two other committees, the Citizens Advisory Committee on Community Relations and the Corruption Prevention Advisory Committee, review and advise on the work of the Community Relations Department and Corruption Prevention Department respectively.
Members of the public can lodge formal complaints against ICAC officers to the ICAC Complaints Committee. Its membership consists of members of the Executive and Legislative Councils, prominent citizens, the Attorney General and the
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Ombudsman. The commission also has an internal investigation group which monitors the conduct of its officers and investigates complaints or allegations of corruption against ICAC officers.
The Commission's Mission
With the community, the ICAC is committed to fighting corruption through effective law enforcement, education and prevention, to help keep Hong Kong fair, just, stable and prosperous.
Government Laboratory
The Forensic Science Division of the Government Laboratory makes available a range of specialist scientific analytical skills to the criminal justice system in Hong Kong. The laboratory specialists endeavour to be impartial, accurate, and efficient, combining a wide range of analytical examinations with informed scientific opinion on the significance of results obtained. The division's first priority is given to government departments dealing with law and order, but subvented organisations such as the Health Authority can call upon the services provided, as can the private sector, on a cost-recovery basis. Fees are paid direct to general revenue with $0.3 million collected in the past year. The greatest source of income is derived from questioned document examination, DNA profiling and accident reconstruction analysis.
The Division has 144 staff, of whom 55 are professional forensic scientists in various disciplines. Its nine specialist sections organised into the Physical and Biochemical Evidence Group and the Drugs and Toxicology Group undertake the scientific investigation of such diverse crimes as homicide, arson, armed robbery, commercial fraud, fatal traffic accident, manufacture and trafficking of dangerous drugs and possession of controlled pharmaceutical preparations. The division also provides a 24-hour scene-of-crime service by collecting scientific evidence at scenes of crime for further analysis in the laboratory.
The Biochemical Sciences Sections accorded priority during the year on streamlining procedures, building data-bank and intensively training all professional staff in DNA procedures, in particular, the new PCR/STR techniques with the aim of introducing them into routine casework by 1997. The collaborated US Secret Service/HK Government Laboratory computer classification system of counterfeit credit cards, a fruitful outcome of joint efforts between the Questioned Documents Section and experts of the US Secret Service Laboratory was taken up by Interpol for collation of intelligence, on an international scale, regarding movements and clandestine manufacturing of counterfeit payment cards.
While the number of cases involving methamphetamine and benzodiazephines has increased, heroin remained the major drug of abuse. To cope with the substantial increase in the workload of the Drugs and Toxicology Group, a third Controlled Drugs Section commanded by a senior chemist has been set up.
There is a constant need to keep analytical methods under review in keeping with the ever-higher levels of accuracy and precision which new technology provides. For this reason, the Instrumentation and Quality Assurance Section, working directly under the head of the division, is given the task of managing advanced instrumentation and organising quality assurance programmes so as to monitor the
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quality of the division's product and maintain the image of the service in the eyes of the courts and just as importantly, those of the public. Bearing the same objective and following the international trend for standardisation of forensic methods and practices, the division had gone through a stringent programme operated by ASCLD/LAB (American Society of Crime Laboratory Directors Laboratory Accreditation Board) for accreditation of all of its operations and was formally accredited by ASCLD in June 1996.
Much of the work done in the process of achieving international accreditation provided an invaluable base on which to build an overall strategic HRM plan for the Division, and the Government Laboratory as a whole, in line with the Hong Kong Government's initiative. The accredited Forensic Science Division is confident that its standards compare favourably with the best. The laboratory is well placed to meet the challenges of 1997 and beyond with a team of stable and enthusiastic professional and technical staff.
Immigration Department
By controlling entry to Hong Kong, the Immigration Department plays an important role in maintaining law and order. Through examination at control points and the vetting of visa applications, undesirable persons, including international criminals and terrorists, are detected and denied entry. In 1996, 9 504 such travellers and persons not in possession of proper documentation were refused permission to land and 2 031 people were refused visas.
Detection of Forged Travel Documents
Officers detected a total of 3 192 forged travel documents during the year, compared with 2 660 in 1995. Strict measures were taken to guard against the use of forged travel documents by travellers, as well as illegal immigrants.
Frequent contacts with local and overseas law enforcement agencies and consulates were maintained. Special operations were mounted against forgery syndicates.
Interception of Wanted Persons
In 1996, 119 136 wanted persons were intercepted at immigration control points and other offices. Of these, 73 were known or suspected terrorists, I 126 were connected with murder cases, 5904 were suspected robbers, 43 638 were suspected of involvement in the trafficking of dangerous drugs and 68 395 were wanted in connection with other criminal offences.
Illegal Immigration and Unlawful Employment
Employment opportunities in Hong Kong continued to attract to the territory large numbers of illegal workers who were either illegal immigrants or visitors who breached their condition of stay. The lower wages accepted by these illegal workers encouraged unscrupulous employers to offer them employment. With the assistance of the Task Force Unit, more frequent checks were conducted at targeted locations, including construction sites, factories, restaurants and other places of employment. In 1996, 1 618 operations were conducted, and 4 560 illegal workers arrested.
The illegal workers were prosecuted and either fined or gaoled before being repatriated to their places of origin. Employers of illegal workers were also
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prosecuted and fined and, in serious cases, gaoled. To further deter illegal employment, the maximum fines for illegal workers and their employers were raised in January 1996.
Furthermore, legislative amendments were proposed to redefine the term of 'lawfully employable' person and to impose a duty on employers to ascertain the immigration status of any prospective employee who is not a Hong Kong permanent resident before the offer of employment. In 1996, 580 employers of illegal workers were prosecuted and 24 408 illegal immigrants were apprehended and repatriated, compared with 1 170 and 30 747, respectively, in 1995.
Investigation and Prosecution of Immigration Offences
During the year, the Immigration Service Ordinance was amended to vest more powers in members of the service in the investigation of immigration-related forgery offences as well as offences committed under the Registration of Persons, Births, Deaths and Marriage Ordinances.
In all, 22 028 charges were laid against persons who had committed various immigration offences. These included: remaining in Hong Kong illegally, breach of conditions of stay, making false statements or representations, and using or possessing forged documents.
Deportation and Removal
The department processes deportation and removal orders. During the year, 10 000 persons who had been convicted of possessing or trafficking in dangerous drugs, deception, theft, forgery and other criminal offences were considered for deportation and 643 were deported. Another 671 persons were removed from Hong Kong under removal orders. These included 22 illegal immigrants, mostly of Chinese origin and 649 persons who had breached their condition of stay.
Fire Services
The Fire Services Department fights fires, protects life and property in case of fire and other calamity, provides emergency ambulance services and gives fire protection advice to the public.
The department's establishment of 8 191 staff comprised 7 446 uniformed and 745 civilian members. It is one of the finest fire brigades in the world, with well-trained personnel, advanced communication systems, and modern appliances and equipment.
The department responded to 32 855 fire calls, 21 107 special service calls and 421 220 ambulance calls during 1996, representing an average of 1 154 calls a day. January and February were rather busy, with 12 No. 3 alarm fires and more than 900 vegetation fires.
Despite the heavy operational commitments, the department made some significant advances during 1996. These included increasing contacts with its mainland counterparts through visits and work attachments; upgrading of telecommunication systems to improve efficiency; and reviewing the provision of paramedic service and its future development.
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Fire Suppression
Of the 32 855 fire calls received during the year, 39 were classified as major fires of No. 3 alarm and above. Unwanted alarms, caused mainly by faulty automatic alarm systems or their poor positioning, contributed to about 11.4 per cent of the total number of fire calls. Careless handling or disposal of smoking materials was still the major cause of fires, totalling 5 485 cases in all, followed by accidents involving the preparation of foodstuffs and electrical faults, which accounted for 2 750 and 1 628 cases respectively.
Fires claimed 66 lives, one of them a fireman, and 648 injuries, including 37 firemen. Fire personnel rescued 1 860 people. Notable fires during the year included: a vegetation fire at Pat Sin Leng, Tai Po, on February 10, claiming five lives and 13 casualties; a No. 3 alarm at the Whitehead Detention Centre on May 10, in which two fire personnel were threatened by Vietnamese Migrants; a No. 3 alarm squatter fire at Wong Tai Sin on July 3, in which a woman was killed and two firemen injured; a No. 5 alarm fire in a Yau Ma Tei commercial building on November 20, in which 40 people died, including one fireman, while 80 people were injured; and a No. 4 alarm commercial building fire in Causeway Bay on November 22.
Special Services
The department also provides wide-ranging rescue services in incidents such as traffic accidents, people trapped in lifts or locked in rooms, gas leakages, house collapses, floodings, landslides, industrial accidents and attempts to jump from a height. The department handled 21 107 special services calls in 1996.
Major incidents included the collapse of a footbridge in Tseung Kwan O on January 26, in which a trapped driver was killed; and the rescue of collapsed workers inside a ship at a Yau Tong shipyard, in which two of the four workers died on June 13.
Ambulance Services
The demand for emergency ambulance service kept climbing in 1996. During the year, ambulances answered 398 328 emergency calls, representing an increase of 9.4 per cent when compared with 1995.
With the transfer of non-emergency ambulance service to the Hospital Authority, completed in October 1995, non-emergency ambulances service originated from private hospitals, Social Welfare Department and Department of Health will be taken over by the Auxiliary Medical Services in phases. The first phase commenced in April 1996 for cases in Kowloon, and the whole programme is expected to be completed by April 1997.
In all, 33 paramedic ambulances were in service in March 1996. The department carried out a comprehensive review on the provision of paramedic service to map out its future development.
Communication
The department is replacing its existing radio network system with a computer-aided Trunked Radio System. It provides more channels and better communication between Fire Services Communication Centre and all fire appliances, fireboats and
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ambulances, thus improving operational efficiency. The new Trunked Radio System will be put into commission in phases during 1997.
The department is implementing an Address Transmission System to enhance the accuracy and efficiency of the mobilising of operational resources. The system will transmit the address of an emergency call to stations responding to the call. With the address printed out, the responding crews can attend to the reported address more expeditiously.
To cope with changing needs, the department is upgrading the Ambulance Mobilising software to enable the system to choose the most appropriate type of ambulance to respond to a call. For example, Emergency Medical Assistant Ambulances will be despatched for trauma cases and ambulances equipped with a defibrillator will be sent for cardiac cases.
Fire Prevention
The department formulates and enforces fire safety policies and regulations. It also assists and advises the public on fire protection measures and the abatement of fire hazards. The department's Fire Protection Bureau places great emphasis on public education on fire prevention. A territory-wide fire prevention publicity campaign with the theme 'Fire Prevention in Industrial Premises' was launched on November 24. The bureau produced 2 000 video tapes and 25 000 pamphlets for distribution to the management and staff of industrial sector. Other publicity activities included radio talk shows, fire station open days and exhibitions.
Fire officers gave 1 058 fire prevention talks to people from different sectors of the community. The talks were supplemented by exhibitions and demonstrations.
Fire Services personnel inspected 95 509 premises of all types and issued 4 691 fire hazard abatement notices for the removal of fire hazards during the year. These helped to ensure that fire-prevention measures met the required standards and to enhance public awareness of fire safety. There were 269 prosecutions in cases of non- compliance, with fines amounting to $1,124,050. Prosecutions for obstructing the means of escape in buildings resulted in 83 convictions, with fines totalling $413,300.
After the tragic fire at the Shek Kip Mei Hongkong Bank in January 1994, a Fire Safety (Commercial Premises) Bill was drawn up and introduced to the Legislative Council in May 1996. The new legislation aims to improve fire safety measures of prescribed commercial premises having a floor area greater than 230 square metres. Such premises would include banks, department stores, supermarkets, off-course betting centres, shopping arcades and jewellery and goldsmith shops.
The bureau also sets fire services requirements for new buildings to ensure proper protection for the public. Some 5 623 submissions of building plans, including plans for new airport-related projects, were processed during the year.
Appliances and Equipment
The department operates 660 fire appliances and vehicles fitted with up-to-date fire- fighting and rescue equipment. During the year, three new 50-metre turntable ladder appliances, three new 37-metre turntable ladder appliances, four foam lorries, and 14 new light pumping appliances were bought to replace the old ones.
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The department is building two new fireboats. One fireboat will replace the existing Fireboat No. 3 in 1997 and the other is to provide a new service to protect the River Trade Terminal in Tuen Mun Area 38 in 1998.
Staff Training
The Fire Services Training School and the Ambulance Command Training School organise a 26-week initial training for new recruits. For recruit firemen, this covers basic firefighting techniques, appliances and equipment, breathing apparatus, ambulance aid and physical training. Subjects such as fire protection, legislation, physics and the science of combustion are also included. In addition to the basic firefighting and rescue techniques, courses for recruit Station Officers cover incident command-and-control elements.
The Fire Services Training School gave 951 staff of other government departments and private organisations training on basic fire-fighting and the use of breathing apparatus. The Ambulance Command Training School also offers refresher and advanced training to all ambulance personnel.
In-service training was provided to 2 386 fire and 993 ambulance personnel, while 26 officers were selected to attend various overseas training programmes in the UK, the USA, Japan, Canada, Germany and China. The department recruited and appointed 21 station officers and 172 firemen during the year.
Buildings and Quarters
In line with government policy to provide an emergency response to all areas within minimum set times according to the category of risk, the department continues to plan and build fire stations and ambulance depots at strategic locations to cope with local developments.
During the year, Tung Lo Wan Fire Station, Peng Chau Fire Station and Central Fireboat Station were put into use. Construction has started at North Lantau Island of Chek Lap Kok Sub-divisional Fire Station and Tung Chung Fire Station with ambulance facilities. Sham Tseng Fire Station and Ambulance Depot and Lam Tin Ambulance Depot are also under construction and scheduled for completion in 1997.
The department manages 3 862 quarters, of which 3 586 are for other ranks uniformed officers. Work completed during the year included 482 new quarters at Ngau Chi Wan, 27 at Muk Lun Street Disciplined Services Married Quarters, and conversion and refurbishment of existing Fire Services Married Quarters at Fat Kwong Street and North Point.
Public Liaison Group
The Public Liaison Group was set up in 1994 to encourage public participation in monitoring and improving the delivery of emergency fire services. It helps to foster better understanding between the public and the department. Since the department completed the transfer of non-emergency ambulance services to the Hospital Authority, the group also monitored the delivery of emergency ambulance services, starting from its third term in April 1996. Thirty members of the public from all walks of life were randomly selected from among 142 applicants to form the group's third-term membership.
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Correctional Services
The Correctional Services Department administers a wide range of services for adult and young offenders, drug addicts and offenders with psychiatric problems. The services fall broadly under two programme areas - prison management and re- integration into society. The department also manages detention centres for Vietnamese migrants (VMs) and ex-China Vietnamese illegal immigrants.
At the end of 1996, the department was managing 22 correctional institutions, four halfway houses, a staff training institute, an emergency support group, two custodial wards in public hospitals, and three detention centres for VMs and ex-China Vietnamese illegal immigrants. In all, 7 290 staff were looking after 12 924 inmates, 5 296 VMs, 273 ex-China Vietnamese illegal immigrants, and 3 859 people under supervision after discharge from custody.
In 1996, the penal population remained high and averaged 30 per cent over the certified accommodation. Despite overcrowding which stretched resources, the department was able to implement its programmes effectively.
The number of VMs continued to decrease in 1996 through repatriation and resettlement. The number repatriated in 1996 increased by five times compared with 1995. The workload of the department in managing the VM detention centres remained heavy. The year proved eventful as the VMs continued to maintain an uncooperative and aggressive stance towards the Orderly Repatriation Programme as well as camp transfer exercises.
A new motor launch, Seaway, was put into operation for cargo conveyance to penal institutions on the outlying islands. This vessel, which can carry 40 persons, has greatly enhanced the effectiveness and efficiency of the Emergency Support Group, which is responsible for escort duties. The group is also responsible for providing back-up emergency support services to all institutions.
Male Offenders
Prisoners are assigned to institutions according to their security rating, which takes into account, among other things, the risk they pose to the community and whether or not they are first-time offenders. There are 12 prisons for adult males, four in each of the maximum, medium and minimum security categories. One maximum security prison, Siu Lam Psychiatric Centre, accommodates prisoners requiring psychiatric treatment.
Adult prisoners released under the Pre-release Employment Scheme are housed in a halfway house. The residents must go out to work during the day and return in the evening.
Young Offenders
Prisoners aged under 21 are detained separately from adult prisoners. In 1996, 762 young men and 548 young women were sentenced to imprisonment, and 931 young men and 191 young women were received for custody on remand. Young persons aged between 14 and 20, who are convicted of an offence punishable with imprisonment, may be remanded in custody for a period not exceeding three weeks for assessment of their suitability for admission to a training centre or, for males, a detention centre. For the latter, young adults aged between 21 and 24 may also be so remanded. A comprehensive report, together with the appropriate recommendations,
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will then be forwarded to the courts concerned. In 1996, 2002 offenders were remanded for suitability reports and the Selection Board deemed 1 529 - 1 404 male and 125 female suitable for admission to training or detention centres.
Training centres provide correctional training for young offenders for periods ranging from a minimum of six months to a maximum of three years. Inmates must have suitable employment or a place in school, and will be subject to a statutory period of supervision of three years upon release. They attend half-day educational classes and receive half-day vocational training. Recreational and physical activities are held in the evenings and on Sundays and public holidays. Visits to youth centres, factories, sports centres and country parks are arranged for advanced grade inmates on Sundays and public holidays to provide additional educational and training opportunities and to prepare them for reintegration into society.
In 1996, 297 young males and 24 young females were sentenced to detention in a training centre, while 116 young male offenders and six young female offenders were recalled for breach of supervision conditions for further training. After being discharged from training centres, 65.3 per cent of the male offenders and 90.3 per cent of the female offenders completed the three-year supervision without reconviction. An effective detention centre programme is carried out at Sha Tsui Detention Centre for young offenders aged between 14 and 20 years, and young adults aged between 21 and 24. It emphasises strict discipline, strenuous training, hard work and a vigorous routine. After release, detainees are subject to a statutory period of supervision for one year. During 1996, 283 young offenders completed the supervision and 263 were not reconvicted during the period a success rate of 92.9
per cent.
Young male offenders identified as having special needs are, on discharge from a training centre or detention centre, housed at Phoenix House for up to three months before they are permitted to live at home or in other places while they continue to receive after-care supervision.
Female Offenders
Adult females serve their sentences at Tai Lam Centre for Women, which also caters for remand prisoners and prisoners undergoing drug addiction treatment. Most of these inmates are employed in an industrial laundry, which provides services to government departments and public hospitals.
Young females serve their sentences at Tai Tam Gap Correctional Institution, which accommodates remand prisoners, training centre inmates and prisoners undergoing drug addiction treatment. Since 1994, the medium security Chi Ma Wan Correctional Institution has held adult and young female prisoners to cope with an increasing population of female offenders.
A halfway house is provided for adult and young female prisoners released under supervision from the training centre or under the Pre-release Employment Scheme. The residents there go to work or attend full-time school during the day, and return in the evening.
Drug Addiction Treatment
Drug addicts found guilty of an offence punishable by imprisonment may be sentenced to a drug addiction treatment centre. They can be detained for two to 12
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months, depending on their progress. In-centre treatment is followed by 12 months of statutory after-care supervision.
The drug addiction treatment programme aims to detoxify, restore physical health and, through the application of therapeutic and rehabilitative treatment, wean addicts from their dependence on drugs. Assistance is also given to addiction treatment centre inmates with post-release employment and accommodation. Temporary accommodation is available at halfway houses for those in need of such support immediately after release.
Chi Ma Wan Detention Centre (Lower) was converted to a female drug addiction treatment centre in December 1996 to cope with the treatment needs of female drug addicts.
Young Offender Assessment Panel
The Young Offender Assessment Panel, comprising staff from the Correctional Services Department and the Social Welfare Department, was established in 1987 to provide magistrates with recommendations on the most appropriate programmes of rehabilitation for young offenders between the age of 14 and 25 years. The service provided by the panel is available to juvenile courts and certain magistracies.
Education and Vocational Training
Offenders under the age of 21 attend educational and vocational training classes conducted by qualified teachers and instructors. For educational classes, textbooks compiled by the department are used to provide inmates with suitable and practical learning material matching their maturity and development. Adult offenders attend voluntary evening classes taught by part-time teachers. Self-study packages and distance learning courses are also available for those who are interested.
All offenders are encouraged to take part in public examinations organised by the City and Guilds of London Institute, Pitman Examinations Institute, London Chamber of Commerce and Industry, and the Hong Kong Examinations Authority. Young inmates are permitted to sit for the Hong Kong Certificate of Education Examination as school candidates, and formal classes up to certificate level are provided for them. Adult inmates can sit for the examination as private candidates. Some offenders, mostly adults, have also participated in degree courses offered by the Open Learning Institute of Hong Kong and other academic institutes.
Vocational training programmes are provided to help young inmates cultivate good work habits and discipline, acquire employable skills, and engage in productive work. A Prisoners' Education Trust Fund set up with charitable donations in 1995 provides financial assistance to prisoners in educational pursuits, in the form of grants to cover course or examination fees.
Medical Services
All institutions have their own hospitals or sick bays providing basic medical treatment, health and dental care. Inmates requiring specialist treatment are either referred to a visiting consultant or to specialist clinics in public hospitals. Although HIV infection and AIDS are not a significant problem among inmates, the department has established guidelines for its staff in handling such cases, as well as a programme of education and prevention.
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Ante-natal and post-natal care is provided in institutions for female inmates, but babies are normally delivered in public hospitals. Siu Lam Psychiatric Centre treats prisoners with mental health problems, and offers psychiatric consultations and assessments for inmates referred by other institutions and the courts.
Psychological Services
Clinical psychologists and specially trained officers counsel inmates with emotional difficulties, behavioural and personality problems. Professional consultation is offered to the courts, review boards and institutional management making decisions on the treatment and management of offenders. Research projects are regularly undertaken to better understand offenders' characteristics and needs, and to improve treatment.
Visiting Justices
Justices of the Peace visit penal institutions and VM centres fortnightly or monthly, depending on the type of institution. They investigate complaints, inspect diets and report on living and working conditions. They may also advise the Commissioner of Correctional Services on employment opportunities for released prisoners.
Inspectorate and Management Services
The Inspectorate and Management Services Division studies and monitors the efficacy and efficiency of departmental policies and the management of prison establishments. Its Inspectorate Unit monitors departmental activities through inspections and furnishes specialist advice on all security aspects.
The Complaints Investigation Unit investigates complaints in order to redress grievances. The Management Services
Services Unit reviews standing instructions, departmental manuals, rules and regulations, and conducts management studies to meet the changing needs of the community and the department.
After-care Services
After-care services are provided for inmates discharged from training, detention and drug addiction treatment centres, and to prisoners who participate in the Post- Release Supervision Scheme, the Release Under Supervision and Pre-release Employment Schemes. After-care aims primarily to ease offenders' rehabilitation and re-integration into society. A sound relationship between the inmate, his family and the after-care officer is built up, to help the inmate overcome obstacles to rehabilitation. The after-care officer maintains regular contact with ex-inmates during the statutory supervision periods to ensure that they settle well into the community and comply with the conditions of the supervision orders. Any breach of supervision conditions may result in the person being recalled for a further period of training or treatment.
Following approval by the Release Under Supervision Board, successful applicants are discharged or permitted to go out to work and live in a designated hostel, under the supervision of after-care officers, for the balance of their sentences. The aim is to enable suitable, eligible and motivated prisoners to serve their sentences in an open environment under close supervision. Prisoners who breach supervision conditions may be recalled to serve the remainder of their sentences or may be brought back before the courts for a breach of the supervision order.
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The success of the after-care programmes is measured by the percentage of ex- inmates who complete supervision without re-conviction and, where applicable, remain drug-free. The annual success rates for 1996 were 93 per cent for detention centre inmates, 65 per cent for male training centre inmates, 90 per cent for female training centre inmates, 82 per cent for young male prisoners, 83 per cent for young female prisoners, 63 per cent for male drug addiction treatment centre inmates, 75 per cent for female drug addiction treatment centre inmates, 100 per cent for the Release Under Supervision Scheme and 100 per cent for the Pre-release Employment Scheme. The Post-release Supervision of Prisoners Ordinance, which came into operation in late 1996, provides for aftercare supervision for certain categories of adult prisoners to facilitate their rehabilitation and re-integration into society.
Correctional Services Industries
All inmates, unless certified physically unfit by Medical Officers, are required by law to work six days a week. They are assigned work according to their fitness and security ratings, personal background, balance of sentence, and so on. Employment keeps inmates purposefully and gainfully occupied, thus reducing the risk of unrest due to boredom and lack of constructive activities. It also helps inmates develop the habit of doing meaningful work.
In 1996, about 7 500 inmates were employed in industrial work. They are paid according to the work done and can use their account to buy approved personal items twice a month.
Penal workshops generate a wide range of goods and services for government departments and public organisations, and a small percentage to the private sector. Examples are government furniture, staff uniforms and accoutrements, litter containers, mailboxes and street nameplates. Under the public construction projects, Correctional Services Industries supply traffic signs, paving slabs and kerbs for the highways, new town development and the new airport-related works. Lighter trades include printing, envelope-making, bookbinding and laundry services to public hospitals.
The total production and services provided by Correctional Services Industries in 1996 was equivalent to $420 million in commercial value.
Detention Centres for Vietnamese Migrants
Since June 16, 1988, VMs arriving in Hong Kong have undergone a screening procedure to determine if they are refugees. Any person who has been screened out may appeal to a Refugee Status Review Board, which can reverse the decision. Screened-out migrants remain in the detention centres until arrangements can be made for their repatriation while those screened in as refugees are transferred to open
centres.
The department manages three centres for VMs. A small section in one of the three centres houses ex-China Vietnamese illegal immigrants. Services for the VMs co- ordinated by the United Nations High Commissioner for Refugees (UNHCR) in the centres were further reduced during the year, in line with the policy set by the UNHCR. At the end of 1996, services under the auspices of the UNHCR included education, baby clinics and outings for minors. Other essential services such as the issuance of clothing and relief items are provided by the department.
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During the year, VMs put up strong and sometimes violent opposition and action against repatriations and camp transfers. A series of demonstrations, hunger strikes, and riots broke out in the camps.
In May 1996, a mass disturbance and breakout of VMs occurred in Whitehead Detention Centre. Ransacking and arson resulted in extensive damage to buildings, fixtures and vehicles. During the event, 119 VMs escaped and 117 of them have been re-captured.
Staff Training
The department's Staff Training Institute implements training programmes planned and formulated by a Training Policy Committee. In addition to co-ordinating in- service training through regional training and liaison officers at the institutional level, the institute conducts recruit, development, and specialist training.
Recruit training provides recruits with basic knowledge and skills for carrying out their duties in correctional establishments. Putonghua and Chinese Writing Skills have been incorporated into the recruit training programme. Recruit Officers undergo 26 weeks of training and recruit Assistant Officers do 23 weeks, including a two-week field placement at penal institutions.
Development training helps serving staff develop their career potential. It keeps serving staff abreast of the latest changes and development in the relevant legislation, penal policies, and management concepts.
Specialist training is provided to ensure that serving staff have the professional knowledge and skills to carry out tasks in specialised fields. Attachment training to other local government departments and overseas correctional services is also organised for officers of middle management level and above.
Non-government Organisations
Several organisations assist the department in providing services to help inmates reintegrate into the community. These include the Society for the Rehabilitation of Offenders, Hong Kong; Caritas Lok Heep Club; Hong Kong Christian Kun Sun Association; Wu Oi Christian Centre and the Prisoners' Friends' Association. They provide services such as case work, counselling, hostel accommodation, employment assistance, recreational activities and care for those with a history of mental illness.
Civil Aid Services (CAS)
The Civil Aid Services is a government auxiliary emergency service with a volunteer establishment of 3 634 adults, 3 232 cadets and a permanent staff of 126 civil servants.
Roles and Responsibilities
Its main role is to support government departments tackle emergencies. Volunteers are trained to perform duties during typhoons, landslips and flooding; to search for and rescue people lost, injured or trapped in mountains, collapsed buildings or buried in landslides; to combat forest fires and oil pollution at sea; and to provide crowd control and communication services at charity functions and government events.
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Service Training
The CAS provides full-time and part-time training to its volunteers to equip and prepare them for their operational tasks. The training covers counter-disaster skills, fire-fighting, anti-oil pollution, flood rescue, radiological protection, cardio- pulmonary resuscitation and conventional rescue instruction.
In 1996, 192 full-time courses and 92 part-time courses were conducted. During the year, the CAS continued to send its permanent staff and volunteers overseas for mountain rescue and disaster management training.
Vietnamese Migrant Duties
The CAS has been involved in refugee management since 1975. During 1996, it continued to manage the New Horizons Vietnamese Refugee Departure Centre (for Vietnamese refugees accepted for resettlement overseas) and the Kai Tak Vietnamese Migrant Transit Centre (for Vietnamese migrants awaiting voluntary repatriation to Vietnam, and pregnant Vietnamese women and their accompanying relatives from other detention centres). The CAS deployed 100 volunteers and 13 permanent staff to manage these centres on a daily basis.
Mountain Safety Education
Based on the recommendations of the Inter-departmental Investigation Team after the fatal Pat Sin Leng fire on February 10, 1996, the CAS expanded its role to help promote public awareness of mountain safety by conducting training courses on mountain/hiking safety for organised groups, school teachers, and hiking group leaders. It also provided basic mountain rescue training for members of the emergency services.
Cadet Corps
The Cadet Corps is under the CAS Youth Wing. In 1996, it established a new girl cadet unit in New Territories East, making an overall total of 23 all-male units, six all-female units and three mixed units of boys and girls.
Cadets are recruited from the 12-15 age group, and are provided with recreational activities and a wide range of discipline and skills training including foot drill, casualty handling, light rescue, basic mechanical and electrical engineering, canoe- building and fibreglass moulding, printing and book-binding, carpentry and interior design. They are also trained in countryside preservation, crowd control, rock climbing, orienteering and expeditions. Cadets over 14 years old are encouraged to perform rural area patrolling, crowd control and community services.
Government Flying Service
The Government Flying Service (GFS) is a full-time disciplined service, operating in accordance with civil aviation rules. It provides flying services in support of various government departments and agencies as well as a round-the-clock emergency air ambulance and search-and-rescue services.
The GFS currently operates 11 aircraft: two twin-engined Beech Super King Airs, six Sikorsky S-76 helicopters and three Sikorsky S-70 Black Hawk helicopters. In 1996, more than 7 642 hours were flown and 1 426 requests for emergency medical evacuation and rescue were received. Altogether, 113 search-and-rescue operations
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were carried out. The GFS achieved 98 per cent of its performance pledges on emergency call-out.
The Police Force, the Correctional Services Department, the Fire Services Department and other law enforcement agencies made frequent use of GFS helicopters for operational and training purposes. The Super King Airs supported Police and Customs in anti-smuggling operations and were used extensively by the Lands Department for aerial surveys, photography and map-making. During the year, the GFS flew approximately 20 438 government officers in the course of their duties. Flying services were also provided to many overseas visitors to give an overview of the territory.
In the autumn of 1996, GFS helicopters assisted in more than 41 fire-fighting operations, dropping more than 1 832 tonnes of water on inaccessible bush and forest fires.
The pilot localisation scheme is proceeding steadily. Under the scheme, another two cadet pilots were recruited in 1996 bringing the total number to 25 local pilots in various stages of training. In August 1996, the first local pilot to head the unit was appointed Controller of the GFS.
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THE first 'soldier to soldier, garrison to garrison' contacts between the British Forces and Hong Kong's future People's Liberation Army (PLA) garrison happened in 1996. In May, the Commander British Forces, Major-General Bryan Dutton, was invited to the PLA headquarters at Shenzhen to call upon his opposite number, Major-General Liu Zhenwu.
The Commander British Forces (CBF) is in overall command of the Royal Navy, Army and Royal Air Force elements based in Hong Kong. Major-General Dutton will hold this post until the handover of sovereignty in June 1997. It was the first time the CBF in Hong Kong has made an official visit to China since the establishment of the People's Republic of China in 1949.
Major-General Liu made a three-day return visit to the British Forces in Hong Kong in July at the invitation of Major-General Dutton. He came to the territory again in mid-August on a defence investigation visit organised under the auspices of the Sino-British Joint Liaison Group. Such contacts enhance the Chinese garrison's understanding of Hong Kong and the environment in which they will operate, and aid the smooth transfer of defence responsibilities.
The year also witnessed a large-scale drawdown of the British Forces in the territory and the closure of several bases. The last Gurkha infantry battalion to serve in Hong Kong, the 1st Battalion The Royal Gurkha Rifles (1RGR), which was based at Malaya Lines, Shek Kong, handed over its duties in October and returned to the UK in November where it deployed as part of 5 Airborne Brigade. IRGR was commanded by Lieutenant-Colonel Bijaykumar Rawat, the first Gurkha to command a British Gurkha infantry battalion. Gurkha troops have been deployed in Hong Kong since 1955. (The place-name Shek Kong was previously transliterated as Sek Kong).
The Gurkhas were replaced by the 1st Battalion The Staffordshire Regiment (The Prince of Wales's) which will serve an overlapping five-month unaccompanied tour with the 1st Battalion The Black Watch (Royal Highland Regiment). The Staffordshire Regiment's tour is particularly appropriate since one of its forebear units, the 98th Regiment of Foot, was among the first to serve in Hong Kong, from June 1842 to July 1846.
The Hong Kong Military Service Corps, a training and administrative unit for locally-enlisted soldiers, and based at Stonecutters Island, disbanded in December. As the second-largest military organisation (500 men) within the remaining garrison, its soldiers served in a variety of roles and trades including drivers, mechanics, guards, dog handlers, medical orderlies, cooks and military policemen.
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September saw the disbandment of 67 Gurkha Independent Field Squadron, Queen's Gurkha Engineers, based at Borneo Lines. Gurkha engineers have been based in Hong Kong since 1955, providing general engineering support to the British Forces. In January, the Squadron embarked on its last major project with 120 Sappers returning to their home country of Nepal to help build a 100-kilometre road in the Himalayas.
In August, 50 Hong Kong Workshop, Royal Electrical and Mechanical Engineers, the vehicle repair and recovery sub-unit based at Shek Kong, closed. It was formed at Sham Shui Po in 1946 and at its full strength employed 77 military and 161 Chinese civilian tradesman.
Shek Kong Station finally closed with the movement of the Royal Air Force's helicopter squadron, 28 (Army Co-operation) Squadron, from RAF Shek Kong to its forward operational base at Kai Tak in November. It will continue to operate from the territory's international airport until June 1997.
Over 40 years of schooling for three generations of Service children in Hong Kong came to an end in July with the closure of Shek Kong Primary School, St Andrew's Primary School and St George's Secondary School. Gurkha soldiers' children continued with their education at the Gurkha Primary School, Shek Kong, until it closed in November, the end of the Nepali academic year.
By the end of 1996 the Garrison was left with three major sites - Prince of Wales Barracks, Stonecutters Island and Osborn Barracks - plus some minor sites, mostly married quarters.
The withdrawal of British Forces will continue during 1997. The Staffordshire Regiment will return to the UK in February and will be replaced by the 1st Battalion The Black Watch, which last served in Hong Kong between January 1993 and August 1994.
Units of the fleet, including the three ships of the Hong Kong Squadron, will be present in Hong Kong until June 30, 1997. However, the Royal Navy's shore-based presence, which has lasted for more than 150 years, will come to an end when HMS Tamar, its headquarters on Stonecutters Island, decommissions in April.
The Royal Navy has served in the territory since 1841. At the end of World War II, Hong Kong's liberation from Japanese occupation was effected by Rear Admiral Cecil Harcourt's naval task force on August 30, 1945, after which the Royal Navy returned to establish a base in the territory. Rear Admiral Harcourt became the first and only British military Governor of Hong Kong, serving until April 1946 when Sir Mark Young had recovered sufficiently from his wartime internment to resume his duties. The penultimate commanding officer of HMS Tamar was Commander Ross Thoburn. As part of the drawdown process, he handed over to his deputy, Lieutenant Commander Cliff Squibb, in December 1996.
May will see the disbandment of the Regimental Headquarters of the Logistic Support Regiment, Royal Logistic Corps. The Logistic Support Regiment was formed in April 1994 and was known as the '1 000-Day Regiment' because of its short lifespan.
Early June will bring the closure of 28 (AC) Squadron's forward operational base at Kai Tak and Headquarters British Forces, based in the Prince of Wales Barracks,
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Central, will close on June 30 - marking the final withdrawal of British Forces from Hong Kong.
The Garrison
The Garrison numbered about 3 250 men and women, comprising both military and civilian staff.
The Royal Navy remained active in 1996 in operations within Hong Kong's territorial waters and provided a search-and-rescue capability in the South China Sea extending about 300 nautical miles around the territory. Other tasks included providing support for the Royal Hong Kong Police to counter smuggling and illegal immigration. The three patrol craft of the Hong Kong Squadron HM Ships Peacock, Plover and Starling - patrolled the territory's waters, liaising closely with the Marine Police and other government departments.
The Army comprised the largest element of the garrison and, as such, saw the greatest decline in numbers from three battalions in 1994 to one as preparations for withdrawal continued. The strength of logistic and other supporting units was reduced to reflect the decline in front-line troops.
The Royal Air Force in Hong Kong comprised the helicopter support squadron, No. 28 (Army Co-operation) Squadron, an engineering squadron and an adminis- trative squadron. No. 28 (AC) Squadron is equipped with four operational and two reserve Wessex helicopters. Its role is to provide air support to the garrison from its forward operating base at Kai Tak and it is also available to assist the Hong Kong Government with search and rescue, fire-fighting and other tasks.
Training and Operations
The garrison was unique in its tri-national composition (British, Gurkha and Chinese) and in its ability to blend its troops and skills in a wide range of training and operations. This involved a busy programme throughout the year with combined exercises involving the three services.
Exercises were held in Hong Kong in places such as Lantau and the New Territories, but Hong Kong lacks suitable areas for realistic training with some of the weaponry with which British Forces are normally equipped, so some exercises were held overseas in order to maintain a high standard of military skills. During 1996 the Army joined exercises in Hawaii and Australia, and, for the first time in 10 years, British troops - men from 1RGR - returned to Fiji to take part in military training. HM Ships Peacock, Plover and Starling visited Indonesia, Macau, Malaysia and the Philippines.
The Garrison and the Community
The garrison contributed to the well-being of the wider community in many ways, Apart from the high-profile events that highlighted the garrison's presence, there was much behind-the-scenes activity which largely went unreported.
When a typhoon threatened, the garrison automatically moved to a higher state of alert. Emergency communications were set up and troops placed on standby for any tasks they may have been given. The troops were backed up by a wide variety of equipment and supplies held in disaster relief stores.
The almost-completed new Peak Tram terminal will complement the existing viewing platform - itself only a few years old - in offering the pick of views over Hong Kong. More than 1 million people visited the Peak in 1996, either by bus or the Peak Tram, which began operations in 1888 and is Hong Kong's oldest public transport. It is Asia's oldest funicular railway, rising 373 metres from Garden Road, Central, to Victoria Gap, 397 metres above sea level. BOTTOM: The reason for the climb.
A summer shower sends commuters and tourists scurrying across Yee Wo Street near Jardine's Bazaar in Causeway Bay. Strong competition from major stores in the area helps make shopping enjoyable for locals and visitors. RIGHT: Tin Hau, the Queen of Heaven and Protector of Seafarers, is represented in this statue at
Repulse Bay. RIGHT, BELOW: Junk trips offer a very pleasant way to spend an afternoon or evening admiring Hong Kong's spectacular harbour views.
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Fireworks burst into glorious display against the lights of Tuen Mun to mark the end of 1996. It was Hong Kong's first New Year's Eve fireworks display, as distinct from the well-established Lunar New Year celebration. An estimated 200 000 people lined the foreshore opposite the site of the territory's new international airport to enjoy the show. The traditional Lunar New Year display is staged in the harbour between Central and Tsim Sha Tsui.
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Local people brought a wide variety of skills to the garrison, either in uniform as members of the Hong Kong Military Service Corps or the Chinese Division of the Royal Navy, or as civilians in a wide range of jobs. As the garrison drew down, the number of Chinese personnel, both military and civilian, reduced. The welfare of these employees was of paramount concern and there were extensive resettlement and retraining programmes for the garrison's Chinese employees to train them for, and to help them find, employment once their service with the garrison was no longer required.
Just as the community played an important part in the life of the garrison, the garrison itself took an active role in the lives of local communities. In addition to participation in displays and open days enjoyed by thousands of people, smaller groups of servicemen and women and their families supported a wide variety of charities and involved themselves in projects concerning the young, the elderly and the disabled.
Garrison teams and individuals also played a leading role in the territory's sporting programme. For the first time in their sporting history the British Forces and the PLA formed a joint rugby team to take on a visiting side from the UK, at Borneo Lines, Shek Kong. This was not only the first sporting fixture with the PLA but also represented the first contact, literally at grassroots level, between the British Forces and the PLA. In 1996, for the second time in its history, stewarding of the Hong Kong Sevens International Rugby Tournament was entirely in military hands with more than 250 Gurkhas from the 1st Battalion The Royal Gurkha Rifles bringing their special brand of friendly authority to the stadium. Gurkha military engineers provided the design expertise and manpower for the construction of various youth projects, and several hundred youngsters attended camps run by the garrison to experience a variety of activities, including physical training, assault courses, shooting, map-reading, first aid, hill-walking, canoeing and sailing.
The Hong Kong Locally Engaged Personnel Welfare Trust was officially launched in 1994. It aims to help any Hong Kong ex-servicemen, and their dependants, who find themselves in hardship, distress or poverty after the departure of the British Garrison. It is run by a board of military and civilian trustees and will come into effect on July 1, 1997.
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TOURISM remained the territory's second-largest earner of foreign exchange in 1996, when a record 11.7 million visitors came to Hong Kong. This was an increase of 14.7 per cent over the previous year. Tourism earning registered a record $87 billion, 16 per cent higher than 1995, and represented a contribution of about 8 per cent of Hong Kong's gross domestic product.
Hong Kong remained Asia's most popular travel destination. Japan was Hong Kong's top source of visitors, up more than 40 per cent to 2.4 million, or 20.4 per cent of total arrivals. Visitors from China took second place with 19.7 per cent of the total, the numbers rising some 3 per cent to 2.3 million. Taiwan took third place, with arrivals totalling 1.8 million, or 15.6 per cent of the total arrivals. The number of visitors from South and South-East Asia amounted to 1.6 million, while the other major market regions of Europe, Africa and the Middle East totalled 1.3 million, the Americas 1 million, and Australia, New Zealand and the South Pacific 400 000.
The Hong Kong Tourist Association
The Hong Kong Tourist Association (HKTA) was established by the government in 1957 to develop the territory's tourism industry as a visitor destination. It promotes the improvement of visitor facilities; secures overseas publicity for the territory's attractions; co-ordinates the activities of the tourism industry; and advises the government on tourism-related matters. Over the past 39 years, the HKTA has worked closely with both the local and international tour operators and travel agents, providing information, support, advice and a host of other services, enabling them to market Hong Kong effectively to their clients.
The chairman and members of the HKTA board of management are appointed by the Governor. The association is funded by an annual subvention from the government. It also derives funds from membership dues, sales of publications and souvenirs, and from its own commercial tours. At the end of 1996, the association had 1700 members, comprising airlines, hotels, travel agents, tour operators, conference/exhibition organisers, and retail, restaurant and other visitor service establishments.
The HKTA maintains information and gift centres in the basement of Jardine House, in Central, and on the Star Ferry concourse in Kowloon. It also operates two information counters at the Hong Kong International Airport at Kai Tak. During 1996, these centres assisted 2.9 million visitors. The HKTA also distributed 13.4 million pieces of visitor literature; handled 1 500 written and e-mail enquiries; sent
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information to thousands of fax-users via the Infofax service; and responded to some 61 370 enquiries on the Mandarin, Japanese and multi-lingual telephone hotlines.
Marketing Activities
The new HKTA campaign launched in 1995 under the theme Hong Kong: Wonders Never Cease has won awards world wide. The HKTA's Home Page on the Internet (http://www.hkta.org) continued to expand and received many accolades from international organisations.
The HKTA continued to participate in the Pearl River Delta Tourism Marketing Organisation. This includes the Macau Government Tourist Office and the Guangdong Provincial Tourism Bureau, with support from the China National Tourism Administration and trade organisations. During the year, the organisation was represented at 12 major travel trade shows abroad and organised a series of 16 familiarisation trips to the Pearl River Delta for 130 travel trade personnel and 15 members of the international media. Some 100 000 brochures and leaflets about the attractions of the Pearl River Delta were distributed at these shows, as well as through the international travel trade. In all, 30 tour operators in 20 countries now sell Pearl River Delta packages.
The HKTA's innovative Mobile Pavilion - a tourism roadshow and exhibition transported in two container trucks reached more than 100 000 potential visitors in 51 cities and towns throughout Europe. A six-week tour of the UK at the end of 1996 attracted some 44 000 visitors during its eight stops in major towns and cities. In pursuit of raising the world-wide awareness of Hong Kong as a Cruising Hub of Asia, the HKTA attended several major cruise trade shows in the USA and Australia major markets for cruise visitors. The China National Tourism Administration joined the association for the cruise trade show in the USA, in promoting the attractions of cruising to both Hong Kong and China.
Other major travel trade events overseas which the HKTA attended along with industry partners from Hong Kong included the World Travel Market in London, the International Tourism Exchange in Berlin, the Asia Travel Mart in Singapore and the Pacific Asia Travel Association Travel Mart in Bangkok.
Joint promotions with travel industry partners such as hotels and airlines were also conducted overseas. These included a South-East Asia Roadshow to Bangkok, Singapore, Kuala Lumpur, Jakarta and Manila, and travel trade missions to Taiwan and Japan.
Apart from the Hong Kong-USA Promotion in the United States organised jointly with the government and the Hong Kong Trade Development Council, the association conducted special tourism workshops in parallel with business seminars in New York, Dallas and Los Angeles, attracting high-level business and industry decision-makers. The association also organised Wonders Never Cease consumer shows and exhibitions, featuring top Hong Kong singing and acting stars, as well as professional craftsmen and other entertainers in New York and Los Angeles. More than 100 000 visitors were attracted to both these events with the opportunity to see a wide range of Hong Kong's attractions through the events' innovative use of high- tech interactive information kiosks.
Other marketing activities carried out in 1996 included a Hong Kong Consumer Travel Fair in Singapore, Kuala Lumpur and Bangkok, helping to enhance awareness
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of Hong Kong and generate visitors during 'off-peak' periods. More than 16 500 consumers attended the three fairs and some 2 000 packages were sold, generating revenue of some $9.5 million.
In November, the HKTA organised the Hong Kong Expo 2000 in Stockholm, Sweden, to facilitate business contacts between members of the Scandinavian travel trade and their Hong Kong counterparts. Exhibitors included one Finnish and 14 Swedish tour operators, 11 Hong Kong hotels and seven Hong Kong ground handlers. More than 370 members of the trade attended the Expo. Back in Hong Kong, the HKTA successfully promoted Hong Kong to almost 9 500 travel trade professionals, 90 representatives of the travel media from 30 countries and more than 60 000 visitors at the International Travel Expo '96.
The 'Events Capital of Asia'
In the year, the HKTA continued to organise a series of events promoting the territory as a year-round travel destination, highlighting its unique blend of East and West, and extensive range of top-quality events and attractions.
For the first time, the HKTA organised a Chinese New Year Parade on the first day of the Year of the Rat. The spectacular two-hour-long Parade featured 19 floats sponsored by major Hong Kong and international companies, as well as street performances by 26 groups of international and local entertainers. About 50 000 spectators lined the route and one million watched on local television. Millions more world-wide were able to watch it through satellite link-ups or news broadcasts.
In February, in conjunction with the parade, the HKTA inaugurated a Health and Fortune Expo which brought together a wide range of specialists in such fields as fung shui, acupuncture, tarot card reading, astrology, holistic healing and other eclectic sciences. More than 6 000 people attended the Expo.
In March, the HKTA celebrated the 10th anniversary of the Hong Kong Food Festival with an extra-special array of food-related events and tours. More than 40 journalists and TV crews from around the world attended the festival.
In June, the Hong Kong Dragon Boat Festival International Races moved to a new racing venue - the Shing Mun River in Sha Tin. The festival has proved its status as one of the world's premier dragon-boat racing events, attracting 29 overseas crews and 124 local teams. Row for Charity Races raised $798,000 for the Community Chest of Hong Kong.
The HKTA also carried out overseas promotions of other Hong Kong events such as Hong Kong Arts Festival, the Cathay Pacific/Hongkong Bank Invitation Seven-A- Side Rugby Tournament and the Hong Kong production of Les Miserables.
Special shopping promotions were organised in conjunction with the Association of Retailers and Tourism Services (ARTS) and HKTA member establishments to encourage more visitors to come to Hong Kong during the softer summer and winter months. These promotions offered special discounts and other bonuses for shoppers in Hong Kong during these periods.
The HKTA's own special interest tours The Land Between Tour, the Come Horseracing Tour, the Sports and Recreation Tour, the Heritage Tour and the Family Insight Tour - were enjoyed by 35 800 visitors during 1996. Special culinary
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tours were staged during the Food Festival, the Bun Festival on Cheung Chau Island and the Tin Hau Festival celebrations in Yuen Long.
Conference and Incentive Travel
The HKTA's success in promoting the territory as a top-class venue for international conventions and corporate events is reflected in the growing number of international conferences and exhibitions confirmed for Hong Kong over the coming years. During 1996, Hong Kong played host to some 280 international events, bringing to the territory about 45 000 overseas delegates and participants. Incentive travel groups reached a record total of 1 746, with some 100 000 participants from all over the world.
Major events held in 1996 included: the International Hospital Federation Pan Regional Conference 1996/Hospital Authority Convention '96; the Bureau of International Recycling General Assembly; the 7th International Congress for Infectious Diseases; the 1996 World Congress on Personnel Management; the 6th Asia Pacific Conference on Electron Microscopy; The Joint Congress of the International Federation of Social Workers and the International Association of Schools of Social Work 1996; the 9th Asia Pacific Band Directors Association Conference; the 27th International Council on Social Welfare International Conference; the 3rd International Diabetes Federation Western Pacific Regional Congress; the Asia Pacific Broadcasting Union 33rd General Assembly 1996; the 10th Asia Pacific Regional Conference and Exhibition of the International Water Supply Association; and the 3rd Hong Kong International Cancer Congress/7th Epstein-Barr Virus and Associated Disease Congress.
Major events to be held in 1997 include the 4th Asia Pacific Life Insurance Congress in August, the prestigious World Bank/International Monetary Fund Meeting in September, the Asia Pacific Foreign Exchange Assembly in November and the World Trade Centres Association General Assembly in December. Events beyond 1997 include the International Union of Public Transport Regional Conference and the Airports Council International World Conference in 1998, the 14th World Congress on Sexology in 1999, the Asian Society of Hepato Biliary Pancreatic Surgery Conference in 2001 and the Asia Pacific Dental Congress in 2004. The 'Hong Kong Convention Ambassador Programme' expanded to recruit a total of some 800 top business leaders, professionals and academics from a wide variety of fields as Convention Ambassadors. They are committed to developing the territory's status as a venue for international meetings, conventions and incentive events, working closely with the HKTA to spread the Hong Kong message to their overseas counterparts and business associates.
Local Activities
The HKTA organised local events during the year to further enhance awareness of the importance of the tourism industry to Hong Kong's resident population.
The Student Ambassador Programme, for its 29th year, selected about 150 students from those going overseas to further their education. They took part in a three-week programme of activities and events to increase their knowledge and understanding of various aspects of Hong Kong, enabling them to talk more knowledgeably and positively about their home.
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The 1996 Courtesy Campaign was launched at a special Courtesy Day on August 28 (828 and 288 being lucky numbers in Chinese). Local singing stars Cass Phang and Andy Lau were appointed 'Courtesy Stars', while 18 Courtesy Kids - one from each of Hong Kong's districts were joined by a further 100 Courtesy Captains recruited through co-organiser Commercial Radio to spread the message about the importance of courtesy throughout the territory's 18 districts. Other aspects of the campaign focused on taxi-drivers and primary schoolchildren, under the banner of Courtesy Begins in Childhood. The fifth Tourism Walks for Charity took place at the Sports Institute in Sha Tin in December, raising $2 million from the sponsors of the 4 200 walkers.
Industry Training
The association recognised the importance of training in the tourism industry and continued to work closely with the Vocational Training Council and other training institutes to ensure that sufficient and relevant courses were available for personnel either already working in the industry or wishing to join it. The association produced a Hotel, Catering and Tourism Courses Directory to provide comprehensive and detailed information on the availability of such courses.
To generate and maintain a high professional standard among tour co-ordinators, the association and the Hong Kong Association of Registered Tour Co-ordinators (HARTCO) produced the HARTCO Membership Directory to help tourism personnel select qualified guides. In additional, the HKTA organised a biennial Tour Co- ordinate of the Year Award' to promote pride and professionalism. More than 9 000 nominations were received in the award programme; the top six winners were awarded a trophy and a study trip to Canada.
To promote career opportunities in the tourism industry, the HKTA supported the Travel and Tourism Education Programme. At the end of 1996, 49 schools made tourism a subject in their curriculum for some 3 500 students. The association also gave seven presentations to schools and other interested parties, organised three career seminars and participated in one career exhibition.
Looking to the Future
The HKTA has a blueprint for the future development of the tourism industry based on the recommendations of a Visitor and Tourism Study for Hong Kong (VISTOUR) commissioned by the association in conjunction with the Government Planning Department. The recommendations cover such areas as services, infrastructure, facilities and events. The report was well-received by a wide spectrum of interested parties, including the government and members of the business, professional and industrial communities. The government provided the association with a $50 million. Tourism Development Fund, ensuring that feasibility studies on the top-priority projects could proceed promptly.
Top of the list of those projects is a Hong Kong Exposition that will focus on the territory's international role as a vital Asian hub and the gateway to China. The feasibility study for the Hong Kong Exposition is under way.
Other priority projects requiring feasibility studies include a Film City theme park with specially-contrived or working sets for film and television productions; an aquatic stadium of international standard for rowing, canoeing, water-skiing, dragon-boat racing and other water sports; a cruise centre featuring a modern
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berthing facility and terminal for international cruise ships, as part of the development of Hong Kong as a major cruise hub; themed leisure and entertainment facilities in the urban area, including a virtual reality attraction; a festival marketplace on the waterfront, providing shopping, leisure and entertainment opportunities, emphasising food, beverage, lifestyle and live performances; and a new 'Peak', offering an additional vantage point of the city and the harbour to ease the increasing pressure on Victoria Peak.
In conjunction with the VISTOUR Study, the HKTA also launched its five-year Spotlight Hong Kong programme in November, focusing international attention on Hong Kong through and beyond 1997. It is an event-marketing umbrella, under which large-scale events with international appeal will be grouped, emphasising the territory's year-round role as the Events Capital of Asia and a vibrant and dynamic place to visit.
Outbound Travel
Some 1 200 travel agents are licensed by the Registrar of Travel Agents under the Travel Agents Ordinance to conduct Hong Kong's outbound travel business. Regulation of the business is undertaken through the mutually complementary work of the Registrar and the Travel Industry Council of Hong Kong (TIC). A travel agent must be a member of the council before it is licensed. The Registrar is mainly responsible for performing regulatory functions under the ordinance, such as licensing of outbound travel agents; financial and character investigation of licensed travel agents; hearing of appeals and handling of complaints concerning suspected unlicensed travel agents.
The council's major regulatory functions are: improvement of trade practices, enforcement of codes of conduct and directives of the industry; collection of statutory levies; handling of public complaints and enquiries; and establishment of membership criteria and maintenance of membership records. Member travel agents who breach the rules of self-regulation risk losing their TIC membership and the licence to operate.
In response to a recommendation of the Public Accounts Committee of the Legislative Council, a review on the self-regulation of the outbound travel industry was completed in September 1995. The review concluded that the policy objective should be to promote self-regulation of the outbound travel industry as far as possible, and that the existing regulatory regime was functioning effectively and should therefore be retained.
Improvement measures to the existing regulatory regime were identified during the review. Positive actions have been taken to implement the improvement measures to enhance the effectiveness of the regulatory framework. Performance pledges have been set for the Travel Agents Registry and the executive office of the TIC to improve the quality and efficiency of service to the public and licensed travel agents. Substantiated complaints against licensed travel agents will be taken into account by the registry when applications for renewal of licences are considered.
The Travel Industry Compensation Fund (TICF) was set up in 1993 to protect consumers joining outbound package tours. It is managed by an independent board appointed by the Governor and derives its income from investments and fund levies imposed upon licensed travel agents on the basis of the outbound package tour
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prices. Should a licensed travel agent default, aggrieved outbound travellers with franked receipts are entitled to claim an ex gratia payment of 80 per cent of the tour prices paid. From December 20, 1996, the maximum rate of ex gratia payment under the TICF has been increased from 80 per cent to 90 per cent of the outbound fare paid. In 1996, two licensed travel agents, namely, Mera Travel Services Ltd and Observers Travel Enterprise Co Ltd collapsed in April and June respectively and ex gratia payments of about $4 million were paid out from the fund.
In the light of the closure of the two travel agents, the government is considering ways to further strengthen the regulation of licensed travel agents with a view to better protecting the travelling public. Separately, a working group has been set up under the TICF Management Board to review and streamline procedures regarding processing of claims for ex gratia payments from the TICF upon the default of travel agents.
In December 1994, two Hong Kong tourists were killed and 21 injured when their coach collided with a bus in Thailand. Most of the victims were not insured. In January 1996, three Hong Kong tourists were killed and nine injured in a river rafting accident in Indonesia. The accidents sparked calls in Hong Kong for the provision of mandatory insurance coverage for outbound travellers, especially those travelling as members of package tours.
After carefully considering the views of legislators, members of the public and the travel industry, the Advisory Committee on Travel Agents (ACTA) recommended and the TICF Management Board agreed that the ambit of the TICF should be widened to cover a contingency fund scheme for the protection of outbound travellers on package tours against accidents abroad. As the scheme ensures only minimum protection to outbound travellers on package tours, ACTA also recommended that the TIC should continue to encourage travellers and travel agents to take out their own insurance policies.
The Package Tour Accident Contingency Fund Scheme came into operation before the Lunar New Year with effect from February 16, 1996. It provides financial relief to outbound travellers who are injured or killed in accidents while touring abroad. It covers medical expenses and funeral expenses incurred in the relevant country or repatriation of the dead body/ashes of the victim traveller, as well as expenses incurred in compassionate visits for up to two relatives of the victim traveller. Since the introduction of the scheme, 14 tour accident reports involving four fatal and 10 injuries cases have been received. There have been six applications for financial assistance and ex gratia payments to six victim travellers amounting to $125,000 have been made.
The TICF is in a healthy financial state. At the end of the year, it had a balance of $223 million.
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MEASURES to further enhance the public's access to information were announced in 1994. An administrative code of practice on access to government information, committing the government to even greater transparency in its work, was imple- mented in 1995.
An independent data protection authority enforces new legislation based on international principles governing the collection, holding, processing and use of personal data.
Proposals by the Law Reform Commission to strengthen copyright protection over broadcasting, literary works, videotapes and computer programmes were under consideration at the year's end.
Separately, deregulation of local fixed telecom services and the licensing of new telecom technologies are expected to attract investments valued at more than $5 billion in the next 10 years.
The government also continued to reinforce Hong Kong's long-standing role as a media hub for Asia. In 1996, a further seven new newspapers and 76 new periodicals joined the ranks of the territory's flourishing free press.
The News Media
The news media in Hong Kong include 58 daily newspapers, 625 periodicals, two commercial television companies, a subscription television service, a regional satellite television service, one government radio-television station, two commercial radio stations and a radio station for the British Forces.
The availability of the latest in telecommunications technology, together with growing interest in Hong Kong affairs, has attracted a large number of international news agencies, newspapers with international readership and overseas broadcasting corporations to establish regional offices in the territory. Many international news media representatives have their regional base here and the successful regional publications produced in Hong Kong underline the territory's strong position as a financial, industrial, trading and communications centre. The news media play a significant role in the territory's precautionary measures against sudden climatic threats alerting, informing and advising the public of typhoons or rainstorms.
The Press
The Hong Kong press includes 38 Chinese-language dailies and 12 English-language dailies. Of the Chinese-language dailies, 31 cover mainly local and overseas general news; four focus on finance; and the rest cover entertainment news, especially
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television and cinema news. The larger papers include overseas Chinese communities in their distribution networks, and some have editions printed outside Hong Kong, in particular in the United States, Canada, the United Kingdom and Australia.
One English daily publishes a daily Braille edition, in conjunction with the Hong Kong Society for the Blind. Two English and three Chinese dailies are published on the Internet. Five news agency bulletins, issued in Chinese, English and Japanese, are also registered as newspapers.
Hong Kong is the base for regional publications such as Asiaweek and the Far East Economic Review. The Asian Wall Street Journal and the International Herald Tribune are also printed here.
Several organisations represent and cater for people working in the news media in Hong Kong. The Newspaper Society of Hong Kong represents Chinese and English newspaper proprietors. It is empowered to act in matters affecting the interests of its members.
The Hong Kong Journalists Association is the only industry-wide union of journalists in Hong Kong. It has more than 650 members, an estimated one-fifth of the territory's journalists. From its beginnings in 1968 as a union with a high proportion of expatriate members, Hong Kong Chinese now comprise the bulk of its membership.
The association promotes the right to freedom of expression and actively focuses on a range of press freedom and ethics concerns. Its sub-committees cover such issues as pay, labour rights and disputes, health and safety, training, China-related matters and book publishing.
The Foreign Correspondents' Club offers its members social facilities and a range of professional activities, including news conferences, briefings and films. The Hong Kong Press Club provides professional facilities and the opportunity for journalists to meet socially. It also provides scholarships to journalism students at Baptist University.
With a view to upgrading the standard of working journalists in Hong Kong, the Vocational Training Council (VTC) allocated $360,000 to its Journalism Training Board and Advertising, Public Relations and Publishing Training Board to conduct some 22 upgrading courses for journalists working for the mass media. The most popular course was 'Journalism Symposium 96' jointly conducted by VTC and the Newspaper Society of Hong Kong, and the News Executives' Association. The Chief Secretary, Mrs Anson Chan, officiated at the symposium.
Other popular courses included 'Workshop on Public Relations Skills and Strategies' (conducted by the City University of Hong Kong) and publishing seminars (by the Anglo-Chinese Textbook Publishers Organisation). The Journalism Training Board also provided a subsidy of $22,000 to the Hong Kong Journalists Association in conducting a number of short talks and seminars for reporters and sub-editors.
Information Policy
The Secretary for Home Affairs has overall responsibility for policy formulation on information and related matters, while the Director of Information Services advises the government on the presentation of its policies, and on public relations matters generally, both within Hong Kong and overseas. The main aims are to ensure an open exchange of information in the community and to keep the media fully informed
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of the government's plans and policies, so that members of the public are kept aware of government activities which affect their lives, and to promote Hong Kong's image
overseas.
Information Services Department
The Information Services Department, also known as Government Information Services (GIS), serves as the government's public relations consultant, publisher, advertising agent and news agency. It provides the link between the administration and the media and, through the latter, enhances public understanding of government policies, decisions and activities.
The department is organised into six divisions - News and Media Research, Public Relations, Publicity, Overseas Public Relations, Visits, and Administration. It has a staff of about 570, of whom some 375 are Information Grade officers. The majority of these officers operate outside GIS Headquarters to provide information, publicity and public relations services to policy branches and their departments. A few are posted to Hong Kong Government offices overseas.
In 1994, GIS began to implement an information systems strategy to improve the quality of its services through the quicker dissemination of information and more efficient communication links. The first stage involved the use of the Government News Information System to, among other things, issue press releases to news organisations via computers. The information systems strategy has been fully implemented and extended to
to all departmental operations following the computerisation of the GIS press library in August 1996.
In mid-1996, the GIS started planning for a new GIS Digital Photo System. This will allow news organisations to do on-line searching and down-loading of government photographs in digital format. The system is expected to be ready in April 1997.
In December 1995, GIS launched a Hong Kong Government Home Page (http://www.info.gov.hk) on the Internet through which essential information on Hong Kong can be accessed. It now provides a linkage to more than 60 home pages of government agencies and related organisations. The government has adopted a policy to encourage use of the Internet for the dissemination of government information. The GIS is establishing a Resource Centre to help branches and departments set up home pages and to consider how the government could improve the dissemination of information through better use of the Internet. The government home page is entitled Hong Kong Government Information Centre.
News and Media Research Division
The News Division maintains direct contact with the media on a 24-hour basis. It disseminates government information to over 80 newspapers, news agencies, television and radio stations, and other organisations.
The division produces a daily information bulletin in English and Chinese, which contains about 20 of the more important press releases on an average day. It runs a press enquiry service which operates round the clock.
It has a comprehensive press library, holding press cuttings and copies of all government press releases, and a smaller reference library for use by journalists, researchers and students.
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The division also supervises the work of the Media Research Sub-division, which keeps the government fully informed of public opinion as expressed in the information media. It produces a daily publication summarising news and editorial comments in the English and Chinese press as well as on radio and television. It also produces special reports on subjects of interest to the government.
Public Relations Division
The division oversees the work of information units in various government departments and branches. It anticipates, monitors and advises these units in the formulation and development of public relations strategies. It co-ordinates their public relations and publicity efforts on complex issues that may span several departments or branches, to ensure consistency of purpose. It has responsibility for the overall management of information grade officers in the units and ensures effective deployment and utilisation of staff resources.
Excluding those attached to the overseas offices, more than 30 information units operate in government departments and branches. They work closely with GIS headquarters in dealing with information, public relations and publicity aspects of the work of departments or branches. These units play a major role in maintaining the flow of information and helping to improve relations with the public.
Publicity Division
The Publicity Division is responsible for government publications, promotional campaigns, creative and design work and government photography and advertisements. It organises about 12 major government campaigns and about 40 general publicity programmes each year on such topics as environmental protection, crime prevention, safe working practices, AIDS awareness and prevention of drug abuse.
The division handles more than 9 500 separate titles and produces a wide variety of government publications, including the Hong Kong Annual Report. It distributes some six million free copies of publications such as books, fact sheets, brochures, pamphlets, posters and government forms. Associated with this output, the Division sells some 3.5 million copies of books, photographs and miscellaneous printed material annually.
Overseas Public Relations Division
The division formulates the government's overseas public relations strategy; co- ordinates all international publicity efforts, including major promotions and festivals in overseas countries with which Hong Kong has significant trading interests; monitors Hong Kong's image overseas and handles VIP visits.
Its Overseas Public Relations Sub-Division co-ordinates the government's international publicity efforts. It produces and distributes promotional material world-wide, including feature articles, books, pamphlets and television news clips. The sub-division also runs a programme under which journalists are invited to visit Hong Kong to gain a better understanding of the territory. It provides assistance for other visiting journalists requiring information and interviews with government officials, and business and community leaders; and maintains close liaison with news agencies and foreign correspondents based in Hong Kong.
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The sub-division is also responsible for the production of the Hong Kong Government Home Page, known as the Government Information Centre, which is accessible to millions of Internet users world-wide.
Visits Division
The Visits Division sponsors and invites VIP visitors, including politicians, parliamentarians, officials and business people from countries with close relations with Hong Kong, to visit the territory. It co-ordinates their visit programmes and briefings with the aim of improving their understanding of Hong Kong.
The division has a programme under which arrangements are made for senior government officials and prominent local personalities to address targeted audiences overseas. These programmes are complemented by participation in international seminars, cultural activities and other events. The division also co-ordinates high- level missions overseas.
Administration Division
The Administration Division provides administrative, personnel and financial support services for the department.
Hong Kong Image Overseas
A key objective of the government's information policy is to project an accurate image of Hong Kong overseas. With the growing international interest in Hong Kong, the government and leading private sector organisations have joined hands in expanding their public relations programme and promotional activities overseas.
Overseas Offices
The government's overseas public relations efforts are concentrated on Hong Kong's major business partners in North America, Europe and the Asia-Pacific region. This work is carried out through the Hong Kong Government Office in London and the Hong Kong Economic and Trade Offices (HKETOS) in Washington, New York, San Francisco, Toronto, Brussels and Tokyo. Two new HKETOs were opened during the year in Sydney and Singapore to strengthen economic and trade links in the Asia- Pacific region. An HKETO is maintained in Geneva to deal with Hong Kong's international trade issues under the General Agreement on Tariffs and Trade and the World Trade Organisation. It also liaises with the Paris-based Organisation for Economic Co-operation and Development.
These offices (with the exception of Geneva) provide general news and information services, present promotional events, brief the media and work with GIS to produce news releases specifically for their different audiences. The offices also monitor media coverage and parliamentary proceedings or congressional debates on issues of interest to Hong Kong.
The overseas offices also advise and assist GIS and other departments in drawing up programmes for VIP visitors, such as policy-makers, government officials, politicians, opinion leaders and journalists, to enable them to learn more about Hong Kong, its interests and interrelationships with the world community. They work closely with the 'Hong Kong family' (Hong Kong-related organisations) to encourage and sustain positive interest in Hong Kong and to generate a greater understanding of the issues affecting the territory.
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In addition to these services, each overseas office produces special newsletters containing a digest of news and events in Hong Kong. These are widely distributed to contacts throughout the respective countries.
Special Events
North America
To further strengthen Hong Kong-United States ties, the year saw many high-level visitors from Hong Kong, as well as promotional activities.
In April, the Governor went to New York and Washington DC to argue the case for renewal of unconditional MFN status for China. During his three-day visit, the Governor met President Bill Clinton; Vice-President Al Gore; Congressional leaders and other Administration officials. He also addressed meetings of the National Press Club and the Heritage Foundation.
Before his visit to the United States, the Governor was in Vancouver, Ottawa and Toronto where he met the Prime Minister, Mr Jean Chretien, federal ministers and prominent community and business leaders. He also secured an agreement in principle from the Foreign Minister, Mr Lloyd Axworthy, for visa-free arrangements for holders of Hong Kong Special Administrative Region passports.
Between May and June, the Chief Secretary, Mrs Anson Chan, visited Seattle, San Francisco, Boston, New York, Dallas, Los Angeles and Washington DC. During her visit, Mrs Chan met local government officials, cabinet members, congressional leaders, academics, business people and media representatives. In Washington, Mrs Chan successfully put to the US Congress Hong Kong's case for China's Most Favoured Nation status renewal.
As part of her visit, Mrs Chan led a high-level delegation comprising Hong Kong business and government representatives to New York, Dallas and Los Angeles for a major Hong Kong promotion from June 3-11 entitled 'Hong Kong*USA'96'. It featured a series of business seminars and workshops covering Hong Kong's financial services, high-tech manufacturing and tourism, and keynote luncheon speeches by the Chief Secretary. Other promotion-related activities included gala dinners, concerts by the Hong Kong Chinese Orchestra, a Hong Kong film festival, fashion shows featuring the work of Hong Kong designers, a 'Hong Kong Wonders Never Cease' promotion and a HK-TVB variety show featuring some of Hong Kong's top singers which was broadcast in both Hong Kong and the United States.
The promotion was organised by the Hong Kong Government in conjunction with the Hong Kong Trade Development Council (HKTDC) and the Hong Kong Tourist Association (HKTA) with significant private sector participation from some of the territory's major corporations.
Other senior government officials who visited North America during the year included the Financial Secretary, the Solicitor General and the Attorney General.
The Financial Secretary, Mr Donald Tsang, led a delegation from the Hong Kong Monetary Authority to Washington DC for the World Bank and International Monetary Fund Annual Meetings in September, followed by a visit to New York. He also travelled to Los Angeles to deliver a keynote address at the Pacific Rim Services Conference.
In August, Attorney General, Mr Jeremy Mathews, attended a Commonwealth Law Conference in Vancouver. Earlier, in February, the Solicitor General, Mr Daniel
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Fung, visited New York, Atlanta, Chicago and Los Angeles where he addressed legal associations and policy organisations on Hong Kong's legal system. Mr Fung made two further visits to North America in September and December, addressing audiences in San Francisco, New York, Washington DC and Vancouver.
In February, the HKETO in Toronto, in association with Hong Kong Canada Business Association and HKTDC, organised a successful business promotion in Vancouver, to further enhance Canada's understanding of Hong Kong. The Toronto Office also took part in organising business, trade and industrial investment workshops in conjunction with other associations as an ongoing effort to promote Hong Kong.
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During the year, the HKETOs in North America assisted in organising a number of cultural events including the ever-popular Dragon Boat Festival. The colourful events held in Boston, Atlanta, New York and eight Canadian cities Calgary, London, Montreal, Ottawa, Regina, Toronto, Vancouver and Winnipeg in the summer months attracted hundreds of participants. In July, the Washington Office sponsored a Hong Kong film festival.
United Kingdom
To promote Hong Kong's role as a leading business centre in the Asia-Pacific region, a major conference entitled 'Hong Kong: 1997 and Beyond' was held at the Edinburgh International Conference Centre in October. Speaking at the conference were the Governor and other Hong Kong business leaders.
The Governor also opened an exhibition on Hong Kong architecture and lifestyle entitled 'Hong Kong: City of Tomorrow' at the Edinburgh City Arts Centre. The exhibition was to end in January 1997. During the promotional period, several performances were given by a Chinese orchestra from the Academy for Performing Arts and artists from the Chinese community in the UK.
Other activities organised during the year included a one-day workshop held in London in May to provide practical advice to British companies thinking of setting up offices in Hong Kong and a Hong Kong film festival staged in December.
Australia
The HKETO in Sydney was officially opened by the Chief Secretary in September. Mrs Chan led a high-powered government and business delegation to launch the 'Hong Kong. Australia's Partner in Asia Pacific' promotion in Sydney, Canberra and Melbourne. The promotion aimed to boost Australian confidence in Hong Kong and to strengthen the business and cultural ties between the two places. The Chief Secretary met the Prime Minister, State Governors and Premiers, as well as leading politicians in the government and opposition. Business seminars and workshops were featured in the week-long programme, along with cultural performances, social events, tourism promotion and visits.
In late August, the Financial Secretary, Mr Donald Tsang, visited New Zealand where he called on political leaders and business representatives.
Japan
In November, the Governor visited Japan to further foster the close economic and trade relationship between Hong Kong and Japan. The Governor met the Prime Minister, Mr Ryutaro Hashimoto, other senior cabinet ministers, political leaders
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and leading Japanese businessmen. He also officiated at the opening of the 19th plenary session of the Hong Kong/Japan and Japan/Hong Kong Business Co-operation Committees and delivered a keynote speech at a business seminar held in Tokyo.
Singapore
Led by the Financial Secretary, a 60-strong delegation comprising leading businessmen visited Kuala Lumpur, Singapore and Bangkok in May. While in Singapore, Mr Tsang officiated at the opening ceremony of the HKETO and the Hong Kong Tourist Office at Suntec City.
Mr Tsang met the Prime Minister of Singapore, Mr Goh Chok Tong; the Deputy Prime Minister of Thailand, Dr Amnuay Viravan; and other senior officials and leading businessmen of the three countries. He also addressed business seminars focusing on building strategic partnership for the future in each of the three cities. The Financial Secretary also visited Jakarta in late August, where he met President Soeharto and his cabinet ministers as well as top businessmen. In November, Mr Tsang led the Hong Kong delegation to attend the APEC meetings in Manila, the Philippines.
The Secretary for Trade and Industry, Miss Denise Yue, led a team of trade officials to represent Hong Kong at the first ministerial meeting of the World Trade Organisation in Singapore in early December. Earlier in November, she delivered a speech at a seminar organised by the ETO in Kuala Lumpur.
Brussels
The Governor visited Brussels in July to brief senior officials of the European Union and the Belgian government on the latest developments in Hong Kong. During the visit, Mr Patten was met by, among others, the President of the European Union, the President of the European Parliament and the Deputy Prime Minister of Belgium.
In November, the Governor visited Paris and Bonn to lobby the French and German governments on visa-free access for future SAR passport holders. After meeting the French Foreign Minister and officials in Paris, the Governor went to Bonn where he had meetings with Chancellor Helmut Kohl and the German Foreign Minister.
In October, the Financial Secretary visited Brussels, Luxembourg and Rome, where he met cabinet ministers, officials and leading businessmen and bankers, in addition to signing the Belgium-Luxembourg/Hong Kong Investment Promotion and Protection Agreements and the Italy/Hong Kong Air Services Agreement.
In April, the Financial Secretary visited Zurich, where he met the Governor of the Swiss National Bank; Berne, where he called on the Swiss Minister of Finance; and Frankfurt, where he met the President of the Deutsche Bundesbank, the President of the European Monetary Institute and senior German bankers.
Internet
To further enhance open, transparent and accountable government in Hong Kong, the administration has decided to make more and better use of the Internet to disseminate information on its policies and plans and to communicate with the public. The government home page (Government Information Centre - http:\\ www.info.gov.hk) provides a comprehensive range of information on Hong Kong. In
▲ Gravity-defying feats by acrobats
from the Cirque du Soleil troupe helped draw thousands of people to the big top set up in Victoria Park for its show, Alegria.
A wide variety of performers entertained a huge crowd during a special concert in Kowloon Park in November. ABOVE: Dazzling young violinist Vanessa Mae. RIGHT: Jacky Cheung Hok-yau (top) and Sammy Cheng, singers who took also their talents overseas in major Hong Kong promotions during the year.
NEXT PAGE: Central Asian 'Pamir-rock' made an enthralling performance when Daler Nazar and Shams played on the Kowloon Promenade. The musicians are from Badakhshan, in Tajikistan, and visited Hong Kong as part of the 16th Festival of Asian Arts.
Hong Ko
& Tra
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addition, many government branches and departments have set up their own home pages to make known their policies and plans, to consult the public, and to make available information of general interest. More branches and departments are expected to join the information superhighway in 1997.
Code on Access to Information
The authorities subscribe to the principle of an open and accountable government. This requires reasonable access to government information. The government introduced an administrative code on access to government information, starting with a pilot scheme in March 1995. By the end of 1996, the code had been extended to the whole of the government.
The code sets out clearly the types of government information to which the public will have access. It also lists categories of exemptions to ensure appropriate confidentiality of sensitive information held by the government, and information involving personal privacy and commercial sensitivity.
The public may complain to the Ombudsman about government departments which fail to respond to requests for information in accordance with the code. The code represents a major step in meeting public expectations of greater transparency from the government.
Protection for Privacy with respect to Personal Data
The Personal Data (Privacy) Ordinance was enacted on August 3, 1995. It aims to protect the individual's right to privacy with respect to personal data, and to safeguard the free flow of personal data to Hong Kong. It incorporates internationally accepted data protection principles governing the collection, holding, processing and use of personal data, including the right of individuals to access and correct their own personal data.
The ordinance provides for the Governor to appoint an independent statutory authority, the Privacy Commissioner for Personal Data, to enforce and promote compliance of its requirements. It also provides for the establishment of the Personal Data (Privacy) Advisory Committee to advise the Commissioner on any matter relating to personal data privacy and operation of the ordinance.
The Commissioner assumed office on August 1, 1996. He operated on a recurrent budget of $28 million and his office was fully established by the end of 1996. The Advisory Committee, chaired by the Commissioner and consisting of one official and seven non-official members appointed by the Secretary for Home Affairs, was set up in August 1996, and the ordinance commenced operation on December 20.
Telecommunications Services
Important developments in Hong Kong's telecommunications sector in 1996 included clarification of the scope of Hong Kong Telecom International Limited's exclusive licence on certain international telecommunications circuits and services; the issue of six Personal Communications Services licences in September, the introduction of Calling Number Display service and proposals to amend the Telecommunication Ordinance. Increased competition is giving consumers greater choice of networks and operators, and services have to develop in response to the market.
Implementation of the government's pro-competition and pro-consumer policies in telecommunications is the responsibility of the Telecommunications Authority (TA),
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the statutory regulator. Supported by the Office of the Telecommunications Authority (OFTA), the TA oversees the regulation of the telecommunications industry in Hong Kong and administers the Telecommunication Ordinance and Telephone Ordinance which govern the establishment and operation of all telecommunications services.
Local Fixed Telecommunication Network Services
Voice telephonic services remain very popular in Hong Kong. Hong Kong had 4.5 million telephones served by more than 3.4 million exchange lines at the end of 1996. The telephone density was 70 telephones or 54 exchange lines per 100 population - among the highest in the world.
Many data communication services are available in Hong Kong. By the end of 1996, there were more than 307 732 dedicated facsimile lines. The growth rate in 1996 was 0.9 per cent per month.
Upon deregulation of the Fixed Telecommunication Network Service (FTNS) market in July 1995, the three new FTNS operators - Hutchison Communications Limited, New T&T Hong Kong Limited and New World Telephone Company Limited gradually introduced services such as overseas call access services to compete with the dominant operator, the Hong Kong Telephone Company Limited (HKTC), while rolling out their networks. During the year, New T&T and New World Telephone separately reached agreement with HKTC to connect with its existing customer access network. In December 1996, the three new FTNS licensees formally established their own initial customer access networks, providing direct connections to local fixed telephone service users.
The local telephone charges of the dominant operator, HKTC, are regulated by a price-capping mechanism which limits any annual increase to four per cent below the prevailing rate of inflation. The existing price-control arrangement will be reviewed in 1998.
The Calling Number Display (CND) service was introduced in December 1996, after a three-month public education campaign which included information on privacy issues. The CND service automatically identifies and displays an incoming call's telephone number. Free CND blocking services are available to all telephone
users.
International Telecommunications Services
Under an exclusive licence which runs until September 2006, Hong Kong Telecom International Limited (HKTI) is responsible for providing certain external circuits and services. These include external public telephone services, facsimile, data and television connections; domestic and international telex and telegram services; international private leased circuits; and shore-to-ship and ground-to-air communications from Hong Kong. HKTI also provides international gateways and operational support for a wide range of value-added telecommunications services such as electronic mail, database access and video-conferencing.
The FTNS operators are interconnected to HKTI's international gateways so that customers may have direct access to a variety of international telecommunications services, regardless of which operator's service they choose.
In April 1996, the TA clarified the scope of HKTI's exclusive licence and formally opened a number of new services for competition. In view of the rapid developments
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in the international telecommunications market, in June 1996 the government and Hong Kong Telecommunications Limited, the holding company of HKTI, began discussing the existing arrangements for Hong Kong's international telecommunications sector and whether these are best suited to the continued development of the government's policy objective of maintaining the territory as the pre-eminent telecommunications hub in the Asia-Pacific region.
Communications Systems
At the end of 1996, Hong Kong had in operation 17 satellite earth station antennas providing direct communication with 76 countries via satellite. Hong Kong was also directly connected to seven submarine cable systems which linked the territory to many other places.
Public Mobile Radiotelephone Service
At the end of 1996, the four cellular phone operators - Hong Kong Telecom CSL Limited, Hutchison Telephone Company Limited, Pacific Link Communications Limited and SmarTone Mobile Communications Limited provided public mobile radio-telephone services in five digital and two analogue systems. In all, 1 210 680 customers were served, representing a 76 per cent increase over 1995. As a result of a competitive market and technological advancement, cellular handset prices dropped significantly in 1996.
In September 1996, six Personal Communications Services licences were issued for operating mobile communications services in the 1700-1900 MHz frequency band. Two licences were awarded to the existing cellular operators, Pacific Link and Hutchison. The other four licensees were Mandarin Communications Limited, New World PCS Limited, People's Telephone Company Limited and P-Plus Communications Limited. The six licensees are expected to start providing services in the first half of 1997.
Telepoint (CT-2) Service
With the increasing popularity of cellular phones, the customer base of telepoint services shrank sharply and, as a result, the three licensed telepoint operators ceased operation during the year. The affected customers were offered different packages for switching to cellular phone services.
Public Radio Paging
Public radio paging remains popular in Hong Kong. At the end of 1996, there were 33 licensed paging-service operators using 77 frequencies in the 170 and 280 MHz bands, serving 1.09 million customers.
International Value-Added Network Service
A total of 132 licences for providing international value-added network services were in force at the end of 1996, including 94 Internet access service providers. The Internet user base in Hong Kong was estimated to exceed 200 000. Other value-added services available in the market included electronic mailbox, data communication, store-and-forward facsimile and video-conferencing.
Self-Provision
Companies and organisations are permitted to provide their own external circuits for internal/intra-corporate communications through the grant of a Self-Provided
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External Telecommunication System (SPETS) licence. A major objective of the SPETS licence is to improve the attractiveness of Hong Kong as a telecom- munications hub by letting companies and organisations use the latest telecommunications technologies to meet their corporate communications needs. By the end of 1996, 25 SPETS licences were in force.
Satellite Communications
To meet the growing demand for telecommunications and broadcasting services in the Asia-Pacific region, Asia Satellite Telecommunications Company (Limited), a Hong Kong-registered company, has launched two satellites: AsiaSat-1 in 1990 and AsiaSat-2 in 1995. Their footprint covers more than 50 countries in the region. The company plans to launch one more satellite in 1997.
Another Hong Kong-registered company, APT Satellite Company Limited, provides satellite telecommunications services to the region through its two satellites, APSTAR-I launched in 1994 and APSTAR-IA launched in July 1996. The company plans to launch another satellite in 1997.
Legislation
Two sets of proposals to amend the Telecommunication Ordinance were put forward during the year. The first, which was introduced into the Legislative Council in May, concerned press freedom and freedom of expression. The second, covering a series of house-keeping amendments aiming to update the legislative framework to keep pace with the rapid technological changes in telecommunications and to implement more effectively the Government's pro-competition and pro-consumer policies, was released to the industry for consultation. Comments gathered would be taken into account in finalising the amendment bill.
International Activities
Hong Kong continued to participate in the activities of international and regional telecommunications organisations. During 1996, Hong Kong was represented in conferences and meetings convened by the International Telecommunications Union, the Asia-Pacific Economic Co-operation forum, the Asia Pacific Telecommunity, the Pacific Telecommunications Council, the International Maritime Organisation, the World Trade Organisation, and various conferences, seminars and exhibitions convened by the private sector in the telecommunications industry.
Broadcasting
Broadcasting policy and regulation
The Secretary for Broadcasting, Culture and Sport is responsible for broadcasting policy, the aims of which are to promote choice and diversity through competition, while regulating programme standards to ensure that public standards of taste and decency are observed. Broadcasting licences are issued by the Governor in Council, and administered on his behalf by the Broadcasting Authority (BA), with administrative support from the Commissioner for Television and Entertainment Licensing.
In July 1996, after a policy review and public consultation, the Secretary for Broadcasting, Culture and Sport announced the intention to offer two licences for video-on-demand television services, with a review in 1998 to see whether the
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television market should be further deregulated. In the meantime, no new pay TV licences would be issued.
Broadcasting Authority
Licensed broadcasters are regulated by the BA, whose 12 members include nine appointed members drawn from various sectors of the community, and three public officers. The BA's major function is to foster proper programme, advertising and technical standards for broadcasting licensees. In September 1995, RTHK agreed to be bound by the same programme and advertising standards. The BA keeps in touch with community views on television through television viewing advisory panels, each chaired by a BA member.
On advice from a specialist working group (subsequently renamed the Codes of Practice Committee), the BA issued new guidelines on the advertising of alcohol in 1996, and amended standards in the codes of practice governing property advertising and claims relating to nutritional and dietary effects. Following the lifting of the moratorium on advertising on pay TV, the BA issued a code of practice on advertising standards on pay TV. During 1996, the BA's Complaints Committee dealt with 556 complaints, mostly alleging breaches of standards. On advice from the Complaints Committee, the BA issued 12 warnings and three serious warnings, and imposed one financial penalty amounting to $150,000.
Responding to public concern, the BA introduced a requirement for commercial television licensees to classify programmes unsuitable for children into 'Parental Guidance Recommended' ("PG') or 'Mature' ('M') categories at the end of 1995. In mid-1996, the BA began a mid-term review of Metro Broadcast's licence, and completed similar reviews of the licences for Commercial Radio and Hutchvision Hong Kong Limited, the licensee for STAR TV. The Governor in Council accepted the BA's recommendations for various amendments to the licences.
Television
Hong Kong's television viewers have access to up to 42 domestic and regional television channels in various languages. These include four free-to-air commercial channels funded by advertising, 34 pay TV channels funded by subscriptions, and a variety of free-to-air satellite channels.
The two commercial stations, Television Broadcasts Limited (TVB) and Asia Television Limited (ATV), are licensed to broadcast one Cantonese and one English language channel each until 2002. During 1996, the two stations broadcast about 580 hours of news and entertainment programmes each week, of which the most popular were entertainment magazines, serialised dramas, fund-raising charity shows and game contests. TVB Jade continued to be the most popular channel, followed by ATV Home. The English-language channels, TVB Pearl and ATV World, attracted much lower ratings.
Their licence terms require ATV and TVB to broadcast programmes produced by publicly-funded Radio Television Hong Kong (RTHK). Each week, RTHK produces about 10 hours of programmes intended to fill the gaps left by commercial broadcasters. Programmes covered current affairs, consumers' rights, and topics of interest to children and young people. Several programmes focused on implications of the transition to Chinese sovereignty in 1997. An annual independent survey on audience appreciation showed that RTHK programmes continued to
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attract top ratings. RTHK also produces schools programmes on behalf of the Education Department.
The Wharf Group's Cable Television Limited (Wharf Cable) is licensed to operate a pay TV service until 2005. It offers 15 channels in its basic pay TV package, 14 channels on the optical fibre network, four pay-per-view channels and a premium movie channel. In June 1996, a Home Shopping Channel was added to the basic package, which also includes several locally-produced channels, such as a 24-hour Cantonese news service, and channels devoted to sports, movies, children's programmes, and horse racing.
Wharf Cable also carries several overseas channels, such as CNN, BBC and ESPN. Subscriptions increased from 170 000 at the end of 1995, to about 300 000 at the end of 1996. By its third anniversary, in June 1996, Wharf Cable's micro-wave and optical fibre networks had passed more than 1 million homes and 110 000 homes respectively.
About 465 000 households can also receive regional satellite channels, of which the most popular are the four free-to-air channels broadcast by STAR TV.
Broadcasting hub of Asia
Many regional and international broadcasters have chosen Hong Kong as their Asian broadcasting hub, attracted by the excellent infrastructure and world-class telecommunications facilities, as well as the other ingredients that make Hong Kong the best place to do business in Asia.
STAR TV
Hong Kong is the home base for Satellite Television Asian Region Limited, known as STAR TV. It broadcasts 20 free-to-air and pay TV channels in a variety of languages to an estimated 220 million viewers in 53 countries across Asia, mainly from AsiaSat 1 and AsiaSat 2, launched in 1990 and 1995, respectively.
During 1996, STAR TV continued developing channels geared to the demands of specific markets. In March 1996, STAR TV and its joint-venture partners launched the Phoenix Chinese Channel with a predominantly China-oriented programming service. STAR Plus Japan, a 24-hour general entertainment channel in Japanese, and Viva Cinema, a Tagalog movie channel for the Philippines, were launched in April and May respectively. In late summer 1996, STAR TV launched a special package of programming services for the Indonesian market. A fifth subscription movie channel, targeting the Japanese market, was introduced at the end of the year.
Other satellite broadcasters
Hong Kong is also home to China Entertainment Television Limited (CETV) and the Chinese Television Network (CTN). Both operate an entertainment channel, and CTN also broadcasts a news channel. Several other international broadcasters operate studios in Hong Kong and uplink their signals from the territory, including CNN International, TNT & Cartoon Network, NBC Asia, and Reuters Asia Limited.
Radio
Hong Kong has 15 radio channels - seven operated by RTHK, three by Hong Kong Commercial Broadcasting Company Limited (Commercial Radio), three by Metro
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Broadcast Corporation Limited (Metro Broadcast) and two by the British Forces Broadcasting Services, serving the British forces and their dependents.
Radio Television Hong Kong
RTHK is a publicly-funded, editorially independent broadcaster whose mission is to inform, educate and entertain people through the provision of balanced and objective programmes. It operates seven radio channels, each with a distinct identity.
Radio 1 is RTHK's main news and current affairs channel. Phone-in programmes provide a forum for discussion of major political and social events. In early 1996, RTHK started to broadcast some of its most popular news programmes on the Internet, and launched telephone services in conjunction with Hongkong Telecom, enabling callers to hear Radio 1's output, or the Newsline programme. Radio 2 targets young people with a blend of Cantonese pop music and programmes ranging from civic education to entertainment.
Radio 3 provides a general news and entertainment service for Hong Kong's English-speaking residents, including comprehensive local and international news, as well as a daytime mix of adult contemporary western music and information. Radio 4 is a bilingual channel devoted to fine music and the arts. Its programmes won four prizes at the 1996 New York Festival's international radio competition.
Radio 5 broadcasts educational, cultural and minority interest programmes such as Cantonese opera and provincial music programmes, as well as several hours of Putonghua programming each day.
Radio 6 provides a 24-hour relay of the BBC World Service, while Radio 7 broadcasts Chinese and Western 'golden oldies', interspersed with news summaries and traffic reports every half hour, and special announcements during typhoons and other emergencies.
Asia-Pacific Broadcasting Union
RTHK maintains regular links with international broadcasting associations and other radio stations. In November 1996, RTHK hosted the 33rd General Assembly of the Asian Broadcasting Union (ABU), a professional association of 98 broadcasting organisations in the Asia-Pacific region. It attracted more than 500 people to the assembly and associated meetings on programming, engineering and other broadcasting issues, including a special session on programme piracy, which was relayed live on the Internet. The ABU Prize Competitions were held in conjunction with the annual meeting.
Commercial Radio
Commercial Radio operates three advertising-funded radio channels, including two FM Chinese services (CR1 and CR2) and one English AM service (Quote 864). CR1 is an information channels offering news, current affairs and financial data. CR2 is an entertainment channel targeting students and young people and promotes local music and original works. Quote 864 is an all-music channel with hourly news and weather reports.
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Metro Broadcast
Metro Broadcast operates three commercial radio services. Hit Radio, a Chinese FM channel featuring Chinese and Western pop music, is aimed at young people. FM Select, a bilingual channel, targets those aged 25 and over with a variety of contemporary music.
Metro Plus, on the AM band, comprises mainly news and current affairs programmes in English and other languages.
Film Industry
Hong Kong is a major film-producing centre. During the year, Hong Kong produced 657 films and videos compared with 503 in 1995. Action films and comedies continued to dominate the market. The biggest box-office hits for the year included First Strike ($57 million), Independence Day ($49 million) and Mission Impossible ($39 million). The film Summer Snow won the best movie, best director, best actor and best actress awards at the 15th Hong Kong Film Awards.
Cinema-going remains a popular leisure activity, with mini-cinemas becoming more and more common. A good variety of imported and local films is offered to the audiences. Attendances in 1996 totalled 27 million at 172 cinemas, compared with 28 million and 180 cinemas in 1995.
Hong Kong has a three-tier film classification system: Category I; Category II (subdivided into Category II, and II); and Category III. The objective is to allow adults wide access to films while protecting people under the age of 18 from exposure to material which may be harmful to them. The classifications mean: Category I suitable for all ages; Category II- not suitable for children; Category II,- not suitable for young persons and children; and Category III - suitable for persons aged 18 and above only.
Category II, and II, classifications are advisory in nature (no age restriction is imposed) and are intended to give more information to movie-goers, particularly parents, in the selection of films for themselves or their children. Age restriction is mandatory for Category III films.
During the year, 1 843 films were submitted for classification, compared with 1 807 in 1995. Of these, 311 were classified Category I (one with excisions), 369 Category IIA (one with excisions), 534 Category II (41 with excisions) and 629 Category III (270 with excisions). Film trailers, instructional films and cultural films intended for public exhibition also require censorship but do not need to be classified into any categories. In 1996, 8 952 such items were approved for exhibition.
Film classification standards are kept in line with community standards by regular surveys of community views and consultation with a statutory panel of advisers. The panel comprises about 300 members drawn from a wide cross-section of the community. These advisers give their views to the film censors on the appropriate classification of a film. The censors' decisions on film classifications may be reviewed by the Board of Review (Film Censorship), a statutory body established under the Film Censorship Ordinance. The Board comprises nine non-official members and the Secretary for Broadcasting, Culture and Sport as an ex officio member. There was no review of censors' decisions in 1996.
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Postal Services
The Hong Kong Post Office provides reliable, efficient and universal postal services at reasonable prices to meet the needs of Hong Kong and its international postal obligations. Since August 1, 1995, the Post Office has operated as a trading fund department. This gives it a higher degree of flexibility in resource management so it can respond more effectively to changes in markets and operating environment, improve productivity, efficiency and customer service standards as well as to introduce new services to its customers.
In 1996, the Post Office handled 1.17 billion items of mail, or a daily average of 3.2 million items, representing an increase of 0.7 per cent over 1995. Some 78 per cent of the items involved local mail and 22 per cent overseas mail. In respect of overseas mail, 10 843 tonnes of letter mail and 4 691 tonnes of parcels were despatched by air, representing a decrease of 3.1 per cent from 1995. Outward surface mail comprised 6 474 tonnes of letter mail and 2 997 tonnes of parcels, representing an increase of 0.8 per cent over 1995. The USA, China, the UK, Japan and Taiwan were major partners in letter mail while Japan, Canada, the UK, Taiwan and the Philippines were major partners in parcels.
A reliable and efficient postal service has been an important factor in Hong Kong's development as a leading commercial, financial and industrial centre. The Post Office provides two deliveries each weekday to commercial and industrial areas and one delivery to residential areas.
Performance standards are published for the delivery of mail and for the counter service. The Post Office was able to achieve the pledged standards, and in most areas exceeded them, in 1996.
The Post Office Customer Liaison Group, in its third year of establishment, continued to assist in the effective monitoring of performance pledges and to provide a chance for direct exchange of views between customers and the Post Office.
The Post Office premium service, Speedpost, which provides door-to-door collection and delivery service for customers sending time-sensitive documents, samples or merchandise, continued to play an important part in the business community. Amid intense competition from private couriers, the Post Office handled a total of 4.3 million Speedpost items in 1996, representing a slight increase of 1.1 per cent over 1995. With an expanded network covering 80 countries, the Hong Kong Post Office ranked third in the world in terms of Speedpost traffic, after the USA and Japan. Major exchange partners included China, Japan, the USA, Taiwan and the Republic of Korea.
During the year, the Rennie's Mill Village Post Office was closed down because of demolition of the Tiu Keng Leng Cottage Area. The total number of post offices in the territory was 125. A Parcel Delivery Centre was opened in Sha Tin to facilitate the extension of door-to-door delivery of parcels to the New Territories in phases.
Construction work of the new Air Mail Centre building at Chek Lap Kok Airport started in January and installation of a comprehensive Postal Mechanisation System commenced in November. The system incorporates the state-of-the-art technology in mail processing. It comprises an integrated mail processing system for letters and sorting machines for packets, parcels and Speedpost items. It also consists of a dedicated storage and retrieval system for mailbags, advanced equipment for
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handling airline containers and a comprehensive mail conveying system to speed up the processing and transportation of various categories of mail.
To further enhance efficiency and lower operating costs, the Post Office continued to introduce more mechanisation and automation equipment. Two Culler-Facer- Cancellers were installed, one at the General Post Office and the other at the International Mail Centre, to automate the handling of mail items collected from street posting boxes. The machines can detect and cancel stamps on letter-size items and automatically segregate them into local and overseas letters by detecting the phosphor-tagged stamps affixed on them.
To reduce the response time in handling customer enquiries, a computerised system is being developed for the tracking and tracing of Speedpost, registered letters and parcels. The system will also automate the accounting work with carriers and overseas postal administrations. The first phase of the system for tracking Speedpost is due for completion in October 1997. The remaining phases for tracking mail bags, registered, recorded delivery and insured mail and parcels are planned to be completed within the following two years.
To meet the needs of Hong Kong's business community in outsourcing bulk printing of bills and statements, the Post Office plans to develop a Hybrid Mail Service which produces for customers physical mail from data stored on tape or transmitted electronically to the Post Office. A consultant conducted a feasibility study on the market demand for this service.
A pilot 'Postshop' was set up in December 1996 with a view to widening the scope of retail services and providing convenience to customers in the purchase of postal stationery and souvenir items.
The Post Office issued five sets of special stamps during the year. These featured the Year of the Rat, the 1996 Olympic Games, archaeological finds of Hong Kong, Hong Kong mountains and Hong Kong urban heritage. Special stamp sheetlets were also issued to commemorate the 'Serving the Community' week and Hong Kong's success at the Olympic Games respectively.
Several stamp products were issued as a run-up to the Hong Kong '97 Stamp Exhibition to be held from February 12-16, 1997. These included three $10 definitive stamp sheetlets and a set of hologram postcards with six different designs.
The Post Office also participated in three international stamp exhibitions overseas to promote the collection of Hong Kong stamps and to heighten international awareness of the Hong Kong Post Office.
Hong Kong has a high international reputation for its efficient postal service. The Hong Kong Post Office has been playing an active role in the Universal Postal Union (UPU), and the Asian Pacific Postal Union (APPU), and has participated in various postal meetings and conferences. During the year, the Hong Kong Post Office attended meetings of the UPU Postal Operations Council, the UPU Direct Mail Advisory Board and the UPU Express Mail Service Contract Management Team, the APPU Executive Council Meeting and the 11th Conference of Commonwealth Postal Administrations.
22 RELIGION AND CUSTOM
HONG KONG has a variety of ethnic and cultural groups with differing religious beliefs. Buddhists co-exist with Taoists, Jews, Muslims, Christians, Hindus and Sikhs. Ancestor worship is widely practised in Hong Kong due to the strong influence of Confucianism, which is not a religion but teaches a moral code based on human relations. Apart from offering religious instruction, many major religious bodies have established schools and health and welfare facilities.
Traditional Festivals
Five major Chinese festivals offer occasions for family union and feasting. Foremost is the Lunar New Year, celebrated in the first few days of the first moon. Friends and relatives exchange visits and gifts and children and unmarried adults receive lai see, or 'lucky' money.
The Dragon Boat Festival is celebrated in early summer on the fifth day of the fifth moon. Originally celebrated in memory of an ancient Chinese poet who committed suicide by jumping into a river rather than compromise his honour, the festival has developed into a joyous event characterised by rice dumplings wrapped in lotus leaves and dragon boat races.
For the Mid-Autumn Festival on the 15th day of the eighth moon, adults and children gather under the full moon with colourful lanterns and exchange gifts of mooncakes, fruit and wine.
The Ching Ming Festival in spring and Chung Yeung Festival on the ninth day of the ninth moon are occasions for visiting ancestral graves. Many people mark Chung Yeung by climbing hills in remembrance of an ancient Chinese family which escaped plague and death by fleeing to a mountain top.
Buddhism and Taoism
Buddhism and Taoism, traditional Chinese religions, have a large local following with more than 600 Chinese temples in the territory. Buddhist and Taoist deities are often honoured together in the same temple. Leading deities include Buddha, Kwun Yum (the Buddhist Goddess of Mercy) and Lui Cho (a Taoist god).
Deified mortals are revered in recognition of their feats. Since Hong Kong has always depended on the sea -- originally for fishing and then for trade - Tin Hau, the Queen of Heaven and Protector of Seafarers, is worshipped widely. The most famous of the two dozen or so Tin Hau temples is at Joss House Bay, on the Clear Water Bay Peninsula. Tens of thousands of worshippers visit it during Tin Hau Festival, which falls on the 23rd day of the third moon.
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Other leading deities include Kwan Tai (God of War and the source of righteousness), Pak Tai (Supreme Emperor of the Dark Heaven and local patron of the island of Cheung Chau) and Hung Shing (God of the South Seas and a weather prophet).
The very popular Wong Tai Sin Temple in north-eastern Kowloon is dedicated to a Taoist deity and is built in traditional Chinese architectural style. Other notable temples include the Che Kung temple in Sha Tin in the New Territories, which is dedicated to a Sung Dynasty general; Man Mo Temple for the Gods of Literary Attainment and Martial Valour on Hollywood Road on Hong Kong Island; and Po Lin Monastery on Lantau Island, home to the world's largest outdoor bronze statue of Buddha, the Tian Tan Buddha.
The Protestant Community
The presence of the Protestant community dates from 1841. The latest survey in 1994 recorded 380 000 baptised Protestants. Of these, 260 000 are currently living in Hong Kong. The Protestant Church is made up of over 1 200 congregations in more than 50 denominations with a large number of independent churches. The Baptists form the largest denomination, followed by the Lutherans. Other major denominations are Adventist, Anglican, Christian and Missionary Alliance, Church of Christ in China (representing the Presbyterian and Congregational traditions), Methodist and Pentecostal. With their emphasis on youth work, many congregations have a high proportion of young people.
Protestant organisations operate three post-secondary colleges - Chung Chi College at the Chinese University of Hong Kong, Hong Kong Baptist University and Lingnan College. They run 131 secondary schools, 146 primary schools and 233 kindergartens. They also operate 13 theological seminaries and Bible institutes, 16 Christian publishing houses and 57 Christian bookshops.
They run seven hospitals with 3 463 beds, 24 clinics and 61 social service organisations which provide a wide range of social services, including 221 community, family service and youth centres, 72 day care centres, eight children's homes, 29 homes for the elderly, 97 centres for the elderly, three schools for the deaf and 21 training centres for the mentally handicapped and disabled. There are also 15 camp sites. Five international hotel-type guest houses are managed by the YMCA and YWCA.
Ninety-six para-church agencies and various Christian action groups minister to the Protestant community and respond to current issues and concerns within the Hong Kong society at large. The church supports emergency relief and development projects in third world countries. The 'Five Loaves and Two Fish' Campaign, sponsored by the Hong Kong Christian Council, was the first overseas aid project initiated in Hong Kong. Two weekly newspapers, The Christian Weekly and The Christian Times, present news and comments from a Christian perspective.
Two ecumenical bodies facilitate co-operative work among the Protestant churches in Hong Kong. The older one, dating from 1915, is the Hong Kong Chinese Christian Churches Union with a membership of 275 congregations. The second co-operative body is the Hong Kong Christian Council, formed in 1954. Major mainline denominations and ecumenical services constitute the membership core of the council, which is committed to building closer relationships among all churches in
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Hong Kong as well as with churches in China and overseas. The HKCC also encourages local Christians to play an active part in the development of Hong Kong society. It seeks to serve the wider community through its auxiliary agencies such as the Hong Kong Christian Service, Christian Industrial Committee, United Christian Hospital, Pamela Youde Nethersole Eastern Hospital and the Christian Family Service Centre. The council runs weekly 'Alternative Tours', which give visitors and residents an opportunity to see how the church serves the community.
In recent years, there has been the trend of more young people becoming Christian or identifying themselves as Christians. This is most obvious in the university campuses.
The Roman Catholic Community
The Roman Catholic Church has been present in Hong Kong since the territory's earliest days. The church was established as a mission prefecture in 1841 and as an apostolic vicariate in 1874. It became a diocese in 1946.
In 1969, Francis Chen-peng Hsu was installed as the first Chinese bishop of the Hong Kong diocese, and he was succeeded in 1973 by Peter Wang-kei Lei. The present bishop, John Baptist Cheng-chung Wu, was consecrated in 1975, and was made Cardinal in 1988.
About 237 416 people, or four per cent of the population, are Catholics. They are served by 318 priests, 90 brothers, and 576 sisters. There are 62 parishes and 35 centres for Mass. Most services and other religious activities are conducted in Chinese, with a few churches providing services in English.
The diocese has established its own administrative structure while maintaining traditional links with the Pope and other Catholic communities around the world. It uses the same scriptures and has similar ecclesial communions as in the universal church throughout the world, with which it maintains close fellowship. The assistant secretary-general of the Federation of Asian Bishops' Conference has his office in Hong Kong.
Along with its apostolic work, the diocese is concerned with the well-being of all the people of Hong Kong. The 327 Catholic schools and kindergartens have about 289 604 pupils. The Catholic Board of Education assists in this area. Medical and social services include six hospitals, 17 clinics, 14 social centres, 10 hostels, 24 homes for the aged, one home for the handicapped and many self-help clubs and associations. Caritas is the official social welfare arm of the church in Hong Kong. Services are open to all people indeed, 95 per cent of those who have benefited from the wide range of services provided by the diocese are not Catholics.
The diocese publishes two weekly newspapers, Kung Kao Po and The Sunday Examiner. The Diocesan Audio-Visual Centre produces tapes and films for use in schools and parishes and the Hong Kong Catholic Social Communications Office acts as an overall information and public relations channel for the diocese.
The Muslim Community
Hong Kong has about 50 000 Muslims. More than half are Chinese, with the rest being either locally-born non-Chinese or believers from Pakistan, India, Malaysia, Indonesia and Middle Eastern and African countries. Four principal masajid are used daily for prayers. The oldest is the Jamia Masjid in Shelley Street on Hong Kong
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Island, which was established before the turn of the century and rebuilt in 1915. It can accommodate a congregation of 400.
The Masjid Ammar and Osman Ramju Sadick Islamic Centre, filling eight storeys in Wan Chai, was opened in 1981 and houses a masjid on two floors, a community hall, a library, a medical clinic, classrooms and offices. The masjid is managed by the Islamic Union of Hong Kong and accommodates 700 people but can hold up to 1 500 by using other space in the centre.
The Kowloon Masjid and Islamic Centre, on what is sometimes called the 'Golden Mile' in Nathan Road, was opened in 1984 and replaced a masjid built in 1896. This imposing building, with white marble finishing, is a distinctive landmark in Tsim Sha Tsui. The masjid can hold about 2 000 worshippers and has three prayer halls, community hall, a medical clinic and a library.
Hong Kong Island has two Muslim cemeteries - one at Happy Valley and the other at Cape Collinson, Chai Wan. The Cape Collinson cemetery also has a masjid. The co-ordinating body for all Islamic religious affairs is the Incorporated Trustees of the Islamic Community Fund of Hong Kong, a public charity. A board of trustees nominated by the Islamic Union of Hong Kong, the Pakistan Association, the Indian Muslim Association and the Dawoodi Bohra Association, manages and maintains masajid and cemeteries. The trustees are also responsible for organising the celebration of Muslim festivals and other religious events. Charitable work among the Muslim community, including financial aid for the needy, medical facilities and assisted education, is conducted through various local Muslim organisations.
The Hindu Community
The religious and social activities of Hong Kong's 12 000-strong Hindu Community are centred on the Hindu Temple in Happy Valley. The Hindu Association of Hong Kong is responsible for the upkeep of the temple, which is also used for meditation periods, spiritual lectures, yoga classes and other community activities as well as the observance of major Hindu festivals such as Diwali, Dussehra, Holi and so on. Naming, engagement and marriage ceremonies are performed at the temple according to Hindu rites. Devotional music sessions and religious discourses are held every Sunday morning and Monday evening. The Sunday sessions are followed by a free community meal.
The Hindu Temple is an approved place of worship for the performance of marriages under the Marriage Ordinance (Chapter 181).
Other important services rendered by the temple include administration of last rites, arrangements for cremation and related ceremonies and the general upkeep of the Hindu crematorium at Cape Collinson.
The Sikh Community
The Sikhs
distinguished by their stylised turbans and unshorn hair came to Hong Kong from the Punjab, in North India, as part of the British Armed Forces in the 19th century. Because of their generally strong physique, they also comprised a large segment of the Royal Hong Kong Police Force before World War II.
Today, members of the community are engaged in a variety of occupations. The centre of their religious and cultural activities is the Sikh Temple at 371 Queen's Road East, Wan Chai, Hong Kong Island. A special feature of the temple, which was
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established in 1901, is the provision of free meals and short-term accommodation for overseas visitors of any faith.
Religious services, which include hymn-singing, readings from the Guru Granth (the Sikh Holy Book) and sermons by the priest, are held every Sunday morning. The temple houses a library containing a good selection of books on the Sikh religion and culture, and runs a 'starters' school for Indian children aged between four and six to prepare them for English primary schools in Hong Kong.
The main holy days and festivals observed by the Sikh community are the birthdays of Guru Nanak (founder of the faith), Guru Gobind Singh (the 10th Guru) and Baisakhi (the birthday of all Sikhs).
The Jewish Community
Hong Kong's Jewish community
comprising families from various parts of the world worships on Friday evenings, Saturday mornings and Jewish holidays at the Synagogue Ohel Leah in Robinson Road, Hong Kong Island. The synagogue was built in 1901 on land given by Sir Jacob Sassoon and his family. The original site included a Rabbi's residence and school, as well as a recreation club for the 1000 people in the congregation. There is also a Jewish Cemetery, at Happy Valley.
The site adjoining the synagogue, which once housed the school and club, has been redeveloped into two residential blocks of flats. Within this complex is the new Jewish Community Centre which has kosher dining facilities and recreational facilities for members only. All dining facilities are under full-time rabbinical supervision. The centre offers meeting and banquet facilities as well as a specialist library carefully put together to cover all aspects of Judaica.
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RECREATION, sport and cultural activities enhance the quality of life in Hong Kong. The government aims to create an environment in which diversity, freedom of expression, artistic creativity and sporting excellence can thrive.
The major sporting and cultural bodies spent much of 1996 formulating plans for the development of their respective fields into the next century.
The Hong Kong Arts Development Council was established as an independent statutory body on June 1, 1995, and published its first Five-Year Strategic Plan in December 1995.
After publishing its first strategic plan in 1991, the Hong Kong Sports Development Board published its second strategic plan in October 1995. It outlines a range of initiatives planned for the years 1996 to 2000 to ensure co-ordinated sports development. The broad thrust of the plan is to focus on nurturing athletic talent, encouraging greater participation in sports, and promoting the education of children, parents and teachers about the importance of sport and physical recreation in and out of school.
It was an historic year for Hong Kong athletes who took part in the centennial Olympic Games and the Paralympics in Atlanta. Miss Lee Lai-shan won a gold medal in the Women's Mistral Class (boardsailing) event, to become the first medallist from Hong Kong since the territory started taking part in the Olympic Games in 1952. Mr Ben Cheung Wai-leung, a fireman who took up fencing after losing a leg while trying to rescue a woman during a typhoon in 1983, won four gold medals in the Paralympics.
Other highlights of the year included the completion and opening of the territory's first public golf course on Kau Sai Chau island in October. The government also began to co-ordinate the development of new sporting and recreational venues on four former landfill sites in East Kowloon, Tseung Kwan O and Tai Po and conducted a study aimed at boosting the Hong Kong Sports Institute's ability to support a programme for training local athletes to international standards.
Hong Kong residents have access to a wide range of leisure activities, many of which are provided by the Urban and Regional Councils. The two councils are autonomous bodies empowered to formulate policies for the provision and management of cultural and recreational facilities in their respective areas. They build and operate games halls, sports grounds, swimming pools, parks, museums, libraries and other recreational venues. They also organise and support a host of cultural, sporting and recreational programmes and events.
Buddhism has the greatest following among Hong Kong's religions. CLOCKWISE: New monks have their heads shaved at the Po Lin Monastery, on Lantau Island; devotees climb towards the Tian Tan Buddha, at 26.4 metres the world's largest outdoor bronze statue of the Buddha, which is at the Po Lin Monastery; an abbot leads a devotional procession during a ceremony at Diamond Hill.
| PREVIOUS PAGE: Large coils of incense burn in Man Mo Temple, on Hollywood Road in Central. It was founded in 1847 and dedicated to the Gods of Literature and Martial Valour. It soon became a meeting place for various community groups and a forum for settling disputes among people who were newly arrived in Hong Kong.
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Worshippers burn incense and seek a guide to their futures at the Wong Tai Sin Temple, one of Hong Kong's most popular Taoist temples. Hong Kong is strongly influenced by Confucianism, which teaches a moral code based on human relations, and ancestor worship is widely practised.
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RECREATION, SPORTS AND THE ARTS
The government's policies on recreation, sport, culture and heritage matters are co- ordinated by the Broadcasting, Culture and Sport Branch, headed by the Secretary for Broadcasting, Culture and Sport. He is assisted by several expert bodies, including the Hong Kong Arts Development Council, the Antiquities Advisory Board and the Hong Kong Sports Development Board. Many other individuals and associations also play a role in creating and improving opportunities for leisure activities in Hong Kong.
The Arts
The dynamic lifestyle in Hong Kong and its cosmopolitan outlook, blending the best of East and West, provide local artists with an abundant supply of new ideas on which they can draw to express their talent and creativity. The Hong Kong Arts Development Council's development into an independent statutory body governed by its own ordinance was a major breakthrough for the arts community. It was the direct result of the arts policy review conducted by the government in 1993 to map out the strategy for the future development of the arts in Hong Kong.
Hong Kong has a very rich cultural life, with eight professional performing companies, and hundreds of amateur groups, offering the community a wide range of arts activities. The Urban and Regional Councils also run a total of 17 major arts venues at various accessible locations throughout Hong Kong, providing Hong Kong people with convenient access to different types of cultural presentations.
Hong Kong Arts Development Council
The Hong Kong Arts Development Council was formally established as a statutory body on June 1, 1995. Its mission is to plan, promote and support the broad development of the arts, including the literary, performing, visual and film arts, with a view to improving the community's quality of life.
In order to pursue its goal for creating a more dynamic and diverse arts scene in Hong Kong, during 1995-96 the council provided more than $30 million in project grants to individual artists and arts organisations, and general support grants and seeding grants of $44.67 million to six major performing arts companies in Hong Kong the Chung Ying Theatre Company, Hong Kong Ballet, City Contemporary Dance Company, Exploration Theatre, Hong Kong Arts Festival and the Hong Kong Sinfonietta. In order to discharge its statutory duties effectively, the council has three boards and six committees to handle the various subjects and to help formulate long-term strategic plans.
The council now consists of a Chairman, a Vice-Chairman, four ex officio members and 16 non-official members, eight of whom were nominated by their respective arts interests. In December 1995, the council published its first Five-Year Strategic Plan, setting out its approach to the development of the arts in Hong Kong for the period 1996-97 to 2000-01.
Performing Arts Groups
Hong Kong Philharmonic Orchestra
The Hong Kong Philharmonic, which turned professional in 1974, appeared with internationally acclaimed artists at the Hong Kong Cultural Centre, City Hall and cultural venues in the New Territories before more than 150 000 people. It also
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organised free school concerts, pre-concert talks, seminars, music appreciation courses, ensemble visits to hospitals and educational institutions, the 'Young Audiences' Scheme for students, and published many music-related educational books. In the 1995-96 concert season, the orchestra completed recording four CDs to be released world-wide.
Hong Kong Repertory Theatre
The Hong Kong Repertory Theatre staged seven productions in 108 performances in 1996, attracting 52 504 people. In August 1996, the company was invited to participate in the '96 China Drama Festival and Symposium in Beijing and gave two performances of the translated play Children of a Lesser God in Putonghua at the Children's Theatre.
Apart from its major productions, the company also toured schools and community centres regularly, giving free performances, lecture-demonstrations and workshops. In 1996, the company gave 272 performances as workshops to 27 953 people.
Hong Kong Chinese Orchestra
The Hong Kong Chinese Orchestra is the territory's only professional Chinese music orchestra. In 1996, the 85-member orchestra celebrated its 19th professional season by giving 25 regular concerts and nine ensemble concerts attracting 30 000 people.
It also participated in district arts festivals, organised free outreach performances at community arts centres and schools, and performed in New York, Dallas and Los Angeles as part of the USA/Hong Kong '96 promotion.
Hong Kong Dance Company
The Hong Kong Dance Company is the only professional Chinese dance company in the territory to present Chinese traditional and folk dances and original dance dramas on Chinese and Hong Kong themes. The company presented five productions in 1996, attracting 6 249 people to 21 performances.
In June 1996, the company was invited to participate in the Singapore Festival of Arts and gave two performances of the original dance medley Suchness at the Kallang Theatre, attracting 1 629 people.
On the educational front, the company also gave 109 free performances and lecture- demonstrations in schools and community art centres to 53 471 people.
Chung Ying Theatre Company
The main focus for the Chung Ying Theatre Company continued to be the promotion of local original works. The highlight for 1996 was the return of the highly acclaimed musical The Dracula Spectacula. Other new plays included Children's TV, Archaeology Story and The Chronicle of Lights and Shadows.
City Contemporary Dance Company
The company continued its mission to boost local choreographers and their innovative new works. The highlight for 1996 was the presentation of the exciting multi-media collaboration Lost in a melodramatic city at the 16th Asian Arts Festival. Other works, including Loose pages from a woman's diary and b + g - le beau + la
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grace, were greeted with high acclaim. In May, the company was proud to re-stage San Mao in Shanghai with the Shanghai Oriental Youth Dance Troupe.
Hong Kong Ballet
Hong Kong Ballet presented six productions in the 1996 season including two newly commissioned full-length ballets, Peter Pan by Graham Lusting and Swan Lake by Stephen Jefferies. Other interesting productions included revivals of Peter Darrell's The Nutcracker, Peter Anastos' Cinderella, a Choreographic Workshop, and a special tribute to Frederick Ashton, doyen of the English School of Ballet. The Ashton programme included two of his shorter ballets, Les Patineurs (The Skaters) and the premiere, Les Deux Pigeons (The Two Pigeons).
Exploration Theatre
Exploration Theatre presented a series of new works titled Dragons Trilogy comprising Hongers, A Tale of Three Cities and Dragon's Legend in Hong Kong and toured the production to Canada. A new initiative, the Seed and Bud Project, helped foster the development of original work and the training of young playwrights.
The Hong Kong Sinfonietta
The Hong Kong Sinfonietta presented eight concerts, 16 open educational concerts and 54 accompaniment performances during the year and represented Hong Kong's musical achievements at the China National Day Celebration Gala.
The Hong Kong Academy for Performing Arts
The academy continued to enjoy a high international reputation as one of the world's most comprehensive multi-disciplinary institutions of higher education and professional training for the performing and related technical and media arts.
Established by ordinance with an autonomous governing council, the academy enrolled its first students in September 1985. In addition to the four performing Schools of Music, Dance, Drama and Technical Arts, a new School of Film and Television was created during the year to meet the growing and fast-developing needs of the broadcasting, film-making and media industries in Hong Kong. The new school offered its own study programmes for the first time in September 1996.
The most significant development during 1996 was the completion of a government-commissioned consultancy study on the market demand and social need for performing arts education in Hong Kong. It was conducted by an independent overseas consultant with field work undertaken by a local research firm and the results were submitted to the government for consideration.
The academy continued to place strong emphasis on performances, productions and other forms of practical work in the teaching and learning processes. More than 250 public performances of concerts, recitals, drama, dance, opera and musical shows were given during the year, including four extremely successful evenings of Academy Music at the Government House. The Broadway musical comedy Damn Yankees, produced by the School of Drama and performed on the occasion of Her Royal Highness the Duchess of Kent's visit to the academy in November was among the highlights of the year. Offenbach's opera-bouffe La Vie Parisienne, an example of
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perfect collaboration between the Schools of Music, Dance and Technical Arts, which opened the festival Le French May 1996, won the highest acclaim.
The academy was invited by the Hong Kong Government Office in London to send a Chinese music students' ensemble to perform in Edinburgh and Glasgow during October 1996 as part of a major Hong Kong promotion.
Hong Kong Arts Centre
and
Founded in 1977, the Hong Kong Arts Centre is an independent, non-profit-making and multi-disciplinary arts organisation, presenting both mainstream contemporary visual arts, film and video, performing arts and arts education programmes to as many people as possible. Its funding is derived from rental income, box office receipts, business sponsorship and donations from individuals and companies.
The Arts Centre comprises three auditoria - the 439-seat Shouson Theatre, the 193-seat Lim Por Yen Film Theatre and the 80-seat McAulay Studio. Other venues include the Pao Siu Loong and Pao Yue Kong Galleries, the Atrium Gallery, rehearsal rooms, art and craft studios, music practice rooms and classrooms as well as the newly established Zeman Media Centre and Watari Computer Centre (PC and Mac Lab). As a community resource, it also encourages outside organisations to make full use of its facilities. In 1996, the centre was visited by more than one million people.
Highlights of the programmes this year included The Good, the Pretty and the Very Cheap series; the first 100 per cent local arts festival; Festival NOW '96; the exhibitions Journey of an Artist: The Art of Luis Chan, Focus at the Front Line - A photojournalistic Account of 1995, Quest for Absolute Void - The Art of Jean Degottex, the film programmes The Century of Cinema, A Selection of Chinese Ideology Films, Michelangelo Antonioni Retrospective, Selected Works From Peking Film Studio; the performing arts programmes Nescafe Showtime, The Oak Tree: An Odyssey, and a series of master seminars Identity of Hong Kong Artists, The Artist as Healer, Arts-in-education: From School to Community, and special projects Parents and Children Art Activities, Public Art Seminar Series and Interactive Multimedia Workshop.
Hong Kong Jockey Club Music and Dance Fund
The Hong Kong Jockey Club Music and Dance Fund was set up in 1979 with a donation of $10 million from the Hong Kong Jockey Club for the promotion and development of music and dance education. It is a non-statutory trust fund, administered by a board of trustees. In 1994, the club provided a further capital injection of $22 million to the fund to meet the increase in demand for support.
During 1996, the fund awarded 132 grants and 12 scholarships totalling $4.1 million. The scholarships enabled young people to study music or dance abroad at post-graduate level. The grants helped local schools and organisations to acquire or repair musical instruments and dance equipment, and to set up orchestras or dance groups.
RECREATION, SPORTS AND THE ARTS
Music Office
The Music Office was set up by the government in 1977 and taken over by the two municipal councils on August 1, 1995. They maintained its objective of promoting music among the public, especially among young people in Hong Kong, through the provision of music training to enrich the quality of life in the territory.
A total of 669 instrumental music training classes have been conducted for 3 547 trainees. Apart from some major annual events such as the music camp, music interflows and overseas concert tour, about 220 regular concerts and district activities were organised and 88 536 enjoyed the Music Office's services during the year.
The British Council
One of the British Council's aims in the territory is to foster cultural understanding between Britain and Hong Kong through a balanced programme of music, drama, dance, exhibitions, literary events, film shows and related master classes and workshops. It also works in conjunction with the Urban Services Department, Regional Services Department, Hong Kong Arts Development Council, Education Department, and many other local organisations to support collaborative projects between British and local artists.
In 1996, the council jointly organised several arts events including: concerts by Piano Circus, performances of The Duchess of Malfi by the theatre company Cheek by Jowl and the exhibition Making Space for Theatre - Forty Years of British Theatre Architecture at the Hong Kong Arts Festival; concerts by Black Voices, solo shows by Lynn Ferguson and Tripitaka Theatre Company's Ivan Heng during the Hong Kong Fringe Festival; and the Martin Parr Home and Abroad photography exhibition at the Arts Centre.
It also organised concerts by the Hallé Orchestra from Manchester, and recitals by solo percussionist Eleven Glennie and the Hill/Wiltschinsky Guitar Duo. British conductor and early music specialist Peter Seymour joined his wife, soprano Yvonne Seymour, and tenor Joseph Cornwell in a Christmas Oratorio concert and various other events during December.
Cultural Events
Hong Kong Arts Festival
Since its inauguration in 1973, the Hong Kong Arts Festival has been regarded as a major international arts festival as well as the territory's premier arts event. In 1996, the Hong Kong Arts Festival delivered 11 local productions alongside 32 productions of the best in the world to an audience of 80 000. Local highlights were composer Kung Chi Shing's Destiny Travels Limited and playwright/director Cheung Tat- ming's production of Tropical Rainforest on to the Escalator with the Sand and Bricks collective. International highlights included the Lyon Opera Ballet production of Angelin Preljocaj's Romeo and Juliette and the Canadian Opera Company's double bill of Bark's Bluebird's Castle and Schoenberg's Rewriting.
Hong Kong Fringe Festival
The Hong Kong Fringe Festival was founded in 1982 and has developed from an annual open arts festival into a successful year-round operation which gives the
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emerging artists of Hong Kong the opportunity to hone their skills and create new works.
The 1996 Fringe Festival was staged over four weeks in January and February. Some 320 000 people experienced performances by more than 200 groups and individual artists from Hong Kong and overseas.
Urban Council Presentations
Cultural Presentations
The Urban Council organised a total of 362 performances of various performing arts programmes, attracting a total attendance of 279 207. Music highlights included concerts by the Russian State Chorus, the China Folk Songs Ensemble, the New Orleans Rhythm Kings, the Philharmonic Orchestra of La Scala, and celebrated virtuosi Maria Ewing, Gheorghe Zamfir, Mstislav Rostropovich, Evelyn Glennie and Viktoria Mullova.
The Hong Kong Cultural Centre Midsummer Classics by the National Symphony Orchestra of Ireland offered six concerts with a wide music spectrum, while the two Chinese instrumental concerts featuring sheng, shona and pipa brought together master musicians from China and Hong Kong.
Dance programmes also featured a wide variety of works by local creative forces such as Edward Lam's Dance Theatre and the City Contemporary Dance Company, the new commissioned production of Swan Lake by the Hong Kong Ballet, and performances by leading dance troupes such as the Paul Taylor Dance Company and the Frankfurt Ballet. On the theatre front, works by about a dozen local drama groups were presented.
Operatic offerings included Yu opera by the China Yu Opera Troupe and the Italian opera Turandot, which was a local production featuring overseas principals.
Hong Kong International Film Festival
The Hong Kong International Film Festival is one of the world's major annual, non- competitive film festivals. The 20th Festival in 1996 presented 203 films from 41 countries. Apart from the screening of films, several fringe activities were held, including the posters and stills exhibition of participating films, seminars and outdoor film shows. With assistance from the Hong Kong Film Archive, some films were restored and screened for the retrospective topic The Restless Breed: Cantonese Stars of the Sixties. The Hong Kong Film Archive also staged an exhibition on Superstars of Cantonese Movies of the Sixties. The festival attracted a total audience of 129 640.
Hong Kong Independent Short Film and Video Awards 1996
Jointly presented with the Hong Kong Arts Centre, the competition aims to encourage creative non-commercial independent productions of short film and video in Hong Kong and to promote the interest of the public towards film and video as artistic, communicative and expressive media. The competition was categorised into five sections: Drama, Documentary, Animation, Music Video and Others.
Festival of Asian Arts
The 16th Festival of Asian Arts was held over three weeks in October and November, featuring 20 overseas and nine local performing groups. It attracted 107 700 people.
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Workshops, lecture-demonstrations and free outdoor performances augmented the main performances. The 11th Annual Exhibition of the Asian Watercolour Confederation was also organised during the festival period.
International Arts Carnival
The annual International Arts Carnival entered its 15th year in 1996. It took place in July-August and featured 39 performances of dance, theatre, magic, circus, puppetry, concerts, and children's drama. The shows were staged by four overseas and six local groups.
Other special features of the festival included a poster design competition and exhibition as well as workshops on drama, dance, circus, mime and cartoon.
Community Arts Programmes
Programme planning for the four Community Arts Centres in 1995/96 has come under a central office named Community Arts Co-ordinating Office since January 1996. Major new projects co-ordinated by the office include the 'Artist-in-Residence' Scheme, which allows arts groups to use one of the Urban Council's Community Arts Centres as a home base for a designated period to develop and promote their creative works and educational programmes to the district communities. Arts education activities have also been enhanced at the Community Arts Centres.
Entertainment Programmes
During the year, the council staged 210 entertainment programmes in parks, playgrounds, community halls and the council's community arts centres in the urban areas. Most of these programmes were free and attracted 62 190 people.
Annual territory-wide events organised by the council included the Spring Lantern Festival, Summer Fun Festival, Mid-Autumn Lantern Carnival, Christmas Carnival and New Year's Eve Family Fun Carnival. About 283 960 people attended these festival events. The council also helped co-ordinate the Lunar New Year Fireworks Display, an annual spectacular event held in the Hong Kong Harbour.
Regional Council Presentations
Cultural Presentations
The Regional Council continued to present a wide variety of local and overseas cultural programmes in 1996. International presentations included violinist Robert McDuffie from the USA, great piano masters Fou Ts'ong from Britain and Pascal Roge from France, Le Quatuor a la Devil from France, the Russian National Orchestra under the baton of maestro Mikhail Pletnev, the distinguished young conductor Kent Nagano with the Halle Orchestra from Britain, the Stuttgart Ballet from Germany and the Moscow City Ballet from Russia. Chinese programmes also formed the core element in the overall programme mix. These included presentations by the Guangzhou Cantonese Opera Troupe, Shenyang Beijing Opera Troupe, Guzheng Recital by He Baoquan and Sun Wenyan and Erhu Recital by An Ruli from the mainland.
The council continued its collaboration with the Hong Kong Arts Festival in presenting major festival programmes at its venues. Full support was also given to local professional companies such as the Hong Kong Ballet, the High Noon
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Production Company, the Chung Ying Theatre Company and the Ming Ri Theatre Company in new productions. In 1996, the council presented 594 programmes, reaching a total audience of 28 150.
International Children's Arts Festival
The International Children's Arts Festival, which entered its seventh year in 1996, is an annual summer event organised by the Regional Council for the young and family audience. Artists participating in the 1996 festival included Lazer Vaudeville, Funny Stuff and Cashore Marionettes from the United States, and Zhanjiang Xiao Kong Que Cantonese Opera Troupe from China.
Other programmes included Peter Pan, by the Hong Kong Ballet, The Jungle Boy, by the Ming Ri Theatre Company, and shows presented by the Yangzhou Puppet Theatre Company from China, the Hong Kong Symphony Orchestra and the Teen Choi Family & Friends. Workshops were held on dance, music games, magic, circus and art and handicraft. The festival's total of three Fun Days, 55 workshops and 42 stage performances drew an audience of 26 879.
Regional Council 10th Anniversary
A wide scope of 37 cultural programmes was presented to celebrate the council's 10th Anniversary. Highlights included the Budapest Festival Orchestra from Hungary, Tango Pasion from Argentina, the Moscow Boy's and Men's Choir, Ballet Antonio Gades from Spain, Yunnan Provincial Songs and Dances Troupe, and the Gaozhou Cantonese Puppet Play Troupe from China. Other performances by local artists in the festival included Chung Ying Theatre Company, Golden Glory Cantonese Opera Troupe, and the legendary pop star Tsin Ting. The programmes attracted a total of 27 526 people.
Audience Building Projects
Audience building efforts were enhanced in the year. Besides the animateur schemes on modern dance and drama for students co-presented with the City Contemporary Dance Company and the Prospects Theatre Company respectively, a new scheme on multi-media arts in collaboration with the Zuni Icosahedron was also put on trial. A total of 38 schools and 793 students joined the three schemes.
The 'Friends of Regional Council Town Halls Scheme' continues to build up supporters for the three major civic centres while promoting their interests in the performing arts and enriching their quality of life through cultural experience. It attracted a total of 2 386 members during the year.
District Arts Support Scheme
The District Arts Support Scheme continues to provide greater support to non-profit making cultural organisations in the form of free use of civic centre facilities and/or a cash subsidy for the performing, visual and literary arts activities organised by district organisations. In all, 78 cultural programmes, 10 artists-in-residence projects, five exhibitions and 43 training classes were held under this scheme in 1996.
Entertainment Programmes
The council regularly presents free cultural and entertainment programmes in community halls, playgrounds and open space areas for residents in the vicinity with
RECREATION, SPORTS AND THE ARTS
programmes ranging from the traditional and folkloric to the modern and popular. During the year, 425 programmes were organised, attracting 268 860 people. The Arts in Blossom Scheme continues to provide opportunities for budding and amateur artists to build up stage experience through regular performances in open spaces next to the council's major civic centres.
Visual Arts
The council's Best of Visual Arts Scheme provides opportunities for local visual artists to exhibit their works at major civic centres. Under this scheme, local visual artists and art organisations are presented in one-person or joint exhibitions of works of painting, calligraphy, sculpture, ceramics and print-making. In all, 14 exhibitions were presented, attracting 9 773 viewers in 1996.
Venues
Most venues for cultural events and sports and recreational activities are built and managed by the Urban and Regional Councils. They range from major venues such as the Hong Kong Stadium and Hong Kong Cultural Centre to smaller indoor recreation centres and community arts centres.
Urban Council Venues
Hong Kong Stadium
The Hong Kong Stadium was redeveloped with a donation of $850 million from the Hong Kong Jockey Club. This 40 000-seat outdoor arena can stage world-class sports and entertainment events.
It has become the territory's most popular outdoor stadium since its opening in 1994. In 1996, more than 750 000 spectators participated in 51 events at the stadium.
Hong Kong Cultural Centre
Since its inception in 1989, the Hong Kong Cultural Centre has established itself as a major performing arts venue attracting leading artists from all over the world. The Cultural Centre has three major performing venues: the Concert Hall, the Grand Theatre and the Studio Theatre with seating capacities of 2 085, 1734 and 534 respectively. In 1996, 693 400 people attended 845 performances in these venues.
Highlights of the year included performances by the Philharmonic Orchestra of La Scala, Paul Taylor Dance Company, Ballett Frankfurt, Halle' Orchestra, Dame Kiri Te Kanawa, Maria Ewing, Mstislav Rostropovich, Ryuichi Sakamoto, Viktoria Mullova and Jose Carreras. The Grand Theatre played host to the world-renowned musical Les Miserables and a large-scale local musical Tales of the Walled City and fully demonstrating its ability to stage sophisticated theatrical performances.
The Cultural Centre reaches out to the community. Special free audience-building programmes, education programmes and a Friends Scheme are organised to promote public interest in the performing arts.
City Hall
In the past 34 years, the City Hall has established itself as the hub of cultural activities where performing arts and exhibition programmes are regularly held. New facilities are also introduced in the City Hall. In June 1996, a new City Hall Arts
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Shop opened, selling souvenirs and books on the performing and visual arts. The City Hall also encourages local non-profit-making arts organisations to organise cultural events under the Rental Subsidy Scheme.
During the year, more than 304 000 people attended 613 events staged in the performing venues in City Hall and 133 exhibitions were held. The average usage rate is 89 per cent.
Community Arts Centres
The Urban Council runs four community arts centres the Ngau Chi Wan Civic Centre, Sheung Wan Civic Centre, Sai Wan Ho Civic Centre and Ko Shan Theatre. They actively promote district-based cultural activities.
Each centre includes a theatre and ancillary facilities such as exhibition halls, lecture halls, art studios and practice rooms. During the year, the centres were used for 1253 cultural and entertainment performances, including dramas, Cantonese operas, concerts, variety shows, arts festivals and ceremonies, for audiences totalling 277 500.
The Ko Shan Theatre closed from mid-July 1994 for major improvement works and re-opened in October 1996. The theatre auditorium, which has 1 031 seats, now has air-conditioning installed. The open-air section has been demolished and replaced by a new foyer block housing rehearsal facilities, committee room and a cafeteria. The stage, lighting and sound systems have been improved.
Indoor Stadia
The Hong Kong Coliseum and the Queen Elizabeth Stadium, managed by the Urban Council, are two of the best-equipped, multi-purpose indoor stadia in Asia. The 12 500-seat Hong Kong Coliseum is a popular venue not only for performances by local and international artistes, but also for world-class spectator events including sports competitions, conventions and exhibitions. Highlights of the year included concerts by local pop stars such as Emil Chau, Andy Lau, Aaron Kwok, Cass Phang; and by overseas artistes Chage & Aska, Barry Manilow, Kenny G, Santana and The Cranberries. Popular family entertainment programmes such as magic shows by David Copperfield were also staged.
The 3 500-seat Queen Elizabeth Stadium also plays host to numerous local and overseas productions, such as sport events, pop concerts and cultural programmes, as well as to conventions. Highlights of 1996 included pop singer Bjork in Concert, the family musical Hello! Kitty, the Thomas & Uber Cup badminton tournaments, World Professional Ballroom and Latin American Dance performances and the Table Tennis Women's World Cup.
Computerised Ticketing
The Urban Council operates URBTIX (Urban Ticketing System), a computerised system providing a full range of ticketing services primarily in support of cultural and entertainment events of the territory through its network of 24 outlets. URBTIX services include counter bookings, reservation by telephone and credit card phone orders from registered patrons. In all, 4.3 million tickets were sold through URBTIX 354 during the year.
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Regional Council Venues
The Regional Council manages three major civic centres in Sha Tin, Tsuen Wan and Tuen Mun and three smaller ones in Tai Po, Sheung Shui and Yuen Long. Two new theatres in Kwai Tsing and Yuen Long are under construction and are scheduled for completion in 1997-98.
Urban Council Museums
Hong Kong Museum of Art
The Hong Kong Museum of Art received 193 181 visitors and 356 school parties in 1996. The permanent galleries of Contemporary Hong Kong Art, Historical Pictures, Chinese Antiquities and Chinese Fine Art and Xubaizhai Collection of Chinese Painting and Calligraphy continued to display selected works from the museum collection on a rotation basis.
The Special Exhibition Gallery 1 continued to be a venue for major local and overseas exhibitions of Chinese and Western art. The Special Exhibition Gallery 2, which was reconstructed from two orientation rooms, started to stage exhibitions in small scale from April onwards.
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The year's major events included the Contemporary Hong Kong Art Biennial 1996, an open competition and exhibition; Infinite Image and Space A Retrospective of Zao Wou-ki, a joint presentation with the Consulate General of France; Chinese Jade Animals; Contemporary Chinese Calligraphy, jointly organised with the Chinese Calligrapher's Association of Hong Kong; Views Along the Pearl River Delta, jointly organised with the Peabody Essex Museum of Salem, Massachusetts, USA; 11th Asian Watercolour Confederation Annual Exhibition 1996, a joint presentation with the Hong Kong Modern Art Society of Watercolours; In Pursuit of Antiquities: Thirty-fifth Anniversary Exhibition of the Min Chiu Society, a joint presentation with the Min Chiu Society; The Art of Lee Byng; 19 Hong Kong Artists Series Exhibitions by Chung Tai-fu, Fung Wing-kee, Jane Burrell, Cheng Ming, Choi Kai-yan, Ou Da- wei, Ho Choi-on, Jin Ming, Lau Shuk-fan, Li Ki-kwok, Hui Yan-ki, Man Chi-wah, Anissa Fung, Hung Hoi, Poon Chun-wah, So Man-yee, Tien Chi, Wan Siu-wan and Harold Wong. Special acoustic guide services on most of these exhibits were available to visitors.
Flagstaff House Museum of Tea Ware
The Flagstaff House Museum of Tea Ware presented Chinese Tea Drinking: Selected Works of Chinese Tea Ware from the K.S. Lo Collection; Chinese Ceramics and Seals Donated by the K.S. Lo Foundation, an exhibition in coincidence with the grand opening of the new extension, K.S. Lo Gallery; Teatime in Flanders, a joint presentation with the Port Authority Bruges-Zeebrugge of Belgium; Selected Works of Yixing Purple Clay Wares from the K.S. Lo Collection; and Hong Kong Tea Competition, an open competition.
Hong Kong Visual Arts Centre
The Hong Kong Visual Arts Centre presented New Horizon in Art - Installation, curated by the Hong Kong Visual Arts Research Society; Hong Kong Ceramics 1985-1995, curated by the Contemporary Ceramics Society, Hong Kong. The centre
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supports local artists by providing studio equipment and facilities for ceramics, sculpture and print-making for hire at subsidised rates.
Hong Kong Space Museum
The Hong Kong Space Museum provided an educational and entertaining experience for its visitors through its 55 groups of permanent interactive exhibits housed in the Hall of Astronomy and Hall of Space Science. In 1996, 345 000 people visited the exhibition halls.
Major attractions offered by the museum's Space Theatre included three Omnimax shows, Destiny in Space, The Living Sea and Mystery of the Maya, and two sky shows, Venus - The Unveiling Story and Cosmos in the Wheelchair - Hawking's Black Holes and Time and Comet Hale-Bopp. Besides the two original school shows, The Friendly Sky and The New Solar System, a new interactive school show, Sun, Moon and Stars, was produced for children aged six to eight. These shows attracted more than 489 000 people.
Hong Kong Science Museum
In 1996, the Hong Kong Science Museum attracted 620 000 people to its exhibition halls which comprise some 500 predominantly interactive exhibits. Two thematic exhibitions, World of Whales and Prehistoric Giants were launched during the year. The Energy Efficiency Centre, a permanent exhibition sponsored by the China Light and Power Company Limited and the Hongkong Electric Company Limited with a production budget of $1.1 million, was opened in July.
Generous sponsorship for renewal of exhibits was offered by IBM China/Hong Kong Corporation and Mercedes-Benz China Limited. An offer of exhibits, valued at $6 million, was also received from the Occupational Safety and Health Council to form part of a new exhibition on safety and health at work which is planned to open in 1998.
The museum provided a wide variety of science activities all year round including educational activities such as popular science lectures delivered by scholars and professionals from local universities and academic groups. Other popular programmes included the Fun Science Experiments and Computer Classes. The total attendance was 28 730. During the year, 892 school visits were organised for different types of schools and 92 451 students participated in the programme.
Hong Kong Museum of History
During the year, the museum staged a major exhibition, The Maritime Silk Route: 2000 Years of Trade on the South China Sea, jointly presented with the Guangzhou Museum and the Guangdong Provincial Museum, and supplemented with loan exhibits from the Macau Maritime Museum. In all, 113 750 visitors were recorded during the exhibition from January 23 to July 28.
The permanent exhibition entitled The Story of Hong Kong, which outlines 6 000 years of development of Hong Kong from the New Stone Age to modern times, attracted 245 319 visitors.
The museum organised a wide-ranging educational activities such as video shows, lectures, traditional handicraft courses, field visits to local historic sites and orientation programme for students of the Hong Kong Institutes of Education, all of
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which attracted a very high attendance. The museum's loan services such as travelling exhibitions, videos and slide packs were frequently used by schools and organisations. The museum continued to co-organise, with the Education Department, the fifth Inter-school Competition of Study Projects on The Growth of Hong Kong - A Study by Districts, and seminars on Hong Kong studies for History and Chinese History teachers.
The Lei Cheng Uk Branch Museum, with its thematic display on Han Costume, recorded a total of 56 058 visitors during the year, whereas the Law Uk Folk Museum attracted 43 234 visitors with its permanent display of rural furniture and farming implements, as well as the thematic exhibition, Paper Horse.
Piling work for the permanent Museum of History at Chatham Road was completed in late April, followed by construction of the superstructure which is scheduled for completion in late August 1997. Exhibit designers were also engaged in working on the permanent museum and Lei Yue Mun Museum projects.
Conservation Section
The Conservation Section, which operates from six conservation laboratories, preserves and cares for the varied collections of the Hong Kong Museum of Art and the Hong Kong Museum of History. Scientific examination and conservation treatments are conducted by specialist conservators according to the material nature and treatment needs of individual objects. During 1996, the section physically treated 509 museum objects, including paper artefacts, easel paintings, textiles, costumes, metal sculptures, wooden objects, butterfly specimens and ethnographic materials to revive their artistic and historical merits.
Hong Kong Film Archive
The Urban Council decided in December 1992 to set up the Hong Kong Film Archive at an estimated cost of $198 million. The archive building, at Sai Wan Ho, is scheduled to be completed in mid-1999. Hong Kong is the third-largest film production centre in the world, and the archive will preserve the territory's rich film heritage.
The archive will not only acquire, preserve, catalogue, and document Hong Kong films and related material, but will also encourage public access to its collection through film programmes, seminars and exhibitions. The archive planning office has already acquired more than 1 000 films and 27 000 items of related materials, mainly through donations and deposits by owners. It co-organises two film retrospectives in the community arts centres each year to arouse the public's interest in local cinema. An exhibition, Superstars of Cantonese Movies of the Sixties, was held at the City. Hall Exhibition Hall during the Hong Kong International Film Festival in late March. It attracted 27 000 visitors. A filmography on Hong Kong films made in the pre-war years was published, covering 650 film titles.
Regional Council Museums
Sam Tung Uk Museum
The museum next to the Mass Transit Railway terminus in Tsuen Wan was originally a Hakka walled village built in 1786. The layout of the village resembles a chequerboard with an entrance hall, an assembly hall and an ancestral hall along the
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central axis. The village, also a declared monument, was furnished with traditional Hakka furniture and farming implements. The museum is the largest of its kind in Hong Kong and attracted 377 959 visitors in 1996.
Hong Kong Railway Museum
This open-air museum is in the town centre of Tai Po Market. It consists of the old Tai Po Market railway station building and six historic passenger coaches. The station building, in Chinese decorative style, was built in 1913 and declared a monument in 1984. It attracted 331 417 visitors during the year.
Sheung Yiu Folk Museum
This museum at a scenic spot in Sai Kung is housed in a fortified Hakka village built in the late 19th century. The village has eight domestic units, pig pens, an open courtyard and an entrance gate tower, and is on a platform about two metres above ground. The village and a nearby lime kiln were gazetted as a monument in 1981. Despite its remoteness, the museum attracted 86 407 visitors in 1996.
Heritage Museum
The Regional Council Heritage Museum, now under construction in Sha Tin, will be the largest of its kind in Hong Kong and will help develop and enrich cultural life in the territory. It is being built by modern methods to a traditional Chinese courtyard design.
When completed in 1999, it will have a gross floor area of 26 700 square metres including a net exhibition area of 7 200 square metres. Highlights of the museum will include a History Hall featuring the heritage of the New Territories, a Cantonese Opera Hall, a T.T. Tsui Gallery of Chinese Art, a Chao Shao-an Art Gallery, and a Children's Discovery Gallery.
Exhibitions
Two large-scale exhibitions were staged in the Sha Tin Town Hall in 1996. The exhibition Van Lau Sculptures and Paintings presented 80 of the artist's sculptures, models, paintings and drawings. The second exhibition, Empress Dowager, featured 100 items lent by the Palace Museum, Beijing. It showed the daily life of this powerful Empress, including her clothing, diet, entertainment and make-up.
Another thematic exhibition, Art & Craft: Chinese Folk Festivals in Hong Kong, was staged at the Sam Tung Uk Museum during the year. Traditional Chinese festival handicrafts, including sculpture, paper figurines, embroidery, calligraphy and painting, which were so much part of the life in Hong Kong in the 1950s and '60s, were splendidly re-created. It attracted 304 998 visitors.
Heritage
The Antiquities Advisory Board and its executive arm, the Antiquities and Monuments Office (AMO) continue to promote public awareness of the importance of Hong Kong's cultural and historical heritage through exhibitions, guided tours, publications, local studies and community involvement projects.
The Secretary for Broadcasting, Culture and Sport is the Antiquities Authority who implements the provisions of the Antiquities and Monuments Ordinance as well as
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the Lord Wilson Heritage Trust through the AMO. In so doing, the Secretary for Broadcasting, Culture and Sport draws on the advice of the Antiquities Advisory Board.
Antiquities Advisory Board and Antiquities and Monuments Office
The Antiquities Advisory Board has 17 appointed members. They include anthro- pologists, archaeologists, architects, curators, historians and planners. It advises the government on sites and structures which merit protection through declaration as
monuments.
In order to establish closer contact with overseas heritage institutions, the board, accompanied by staff of the Broadcasting, Culture and Sport Branch, paid two visits to Macau and Beijing in July and September respectively. The visits were a success and paved the way for future cultural exchange programmes.
Three historical buildings and one archaeological site were declared as monuments in 1996: St. John's Cathedral, I Shing Kung and the Yamen Building and the remnants of the South Gate of the former Kowloon Walled City.
St. John's Cathedral is the oldest surviving ecclesiastical building in Hong Kong. I Shing Kung in Wang Chau, Yuen Long, is a traditional two-hall Chinese temple built in 1718 by the six alliances of that area. The Yamen Building of the former Kowloon Walled City was the office and residence of the Commodore of Dapeng, who was stationed in the Walled City. It is the only surviving yamen building in Hong Kong. The remnants of the South Gate, which were uncovered during the archaeological investigations conducted by the AMO in 1993-94, include the flagstone gateway, drainage ditch and most important of all the two original stone plaques bearing the Chinese characters 'Kowloon Walled City' and 'South Gate'.
Restorations and repairs were being undertaken at various historical sites, including the Helena May, I Shing Kung, Lo Wai, and Cheung Shan Kwu Tse buildings, Tang Chung Ling Ancestral Hall and Man Lung Fung Ancestral Hall.
The Antiquities Advisory Board also examined and graded pre-war Chinese temples and monasteries in Kwai Chung, Tsing Yi, Tsuen Wan and the North District as well as the military structures and installations in the Stanley Fort and on the Stonecutters' Island according to their historical significance and architectural merit.
Two rescue excavations were conducted. The first was in April at Sha Ha, Sai Kung, which was affected by landscaping works of the Beach Hotel. The two-week investigation succeeded in ascertaining the archaeological potential of the site which was not known before. The discovery of large quantities of Tang dynasty lime kiln debris and furniture together with other pottery pieces suggested that there was once a Tang dynasty settlement at Sha Ha. The entire excavation was conducted by the AMO with help from a group of enthusiastic volunteers.
Another rescue excavation was conducted by the AMO at Man Kok Tsui on Lantau Island in July. The site was affected by the laying of a water main to supply water to Kau Shat Wan. Bronze Age materials were discovered which allowed a better understanding of the distribution of archaeological remains at the site.
Overseas consultants were commissioned by the AMO to review the documentation system of the Central Archaeological Repository and the recording system of sites of
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historical and archaeological interests, with a view to establishing a computerised database on historical buildings and archaeological sites.
In late 1996, two territory-wide surveys on historical buildings and archaeological sites, respectively, were commissioned with a view to compiling and updating a comprehensive, computerised inventory on historical buildings and archaeological sites. The two surveys were expected to be completed in 1998.
The AMO also launched various exciting heritage promotional programmes. To arouse students' interest in and awareness of the local heritage, a School Heritage Festival was jointly presented by the AMO and the Education Department in March with the sponsorship of the Lord Wilson Heritage Trust. A series of heritage-related activities such as guided tours to historical monuments, trial excavations at archaeological sites, archaeological workshops and a drawing competition on Hong Kong's historical monuments for school children, was organised. In addition, the AMO arranged two exhibitions between April and August. They were the Lord Wilson Heritage Trust Heritage Project Scheme Exhibition, presenting 20 heritage- related projects conducted by 13 local schools, and Portraits of Monuments by Young Artists, which displayed the winning entries in a drawing competition on Hong Kong's heritage monuments. In view of the encouraging response to the School Heritage Festival 1996 and the heritage-related project exhibition, the AMO and the Education Department subsequently displayed the exhibition at five popular town halls and shopping centres in various districts with further sponsorship from the
trust.
Seminars and workshops on Heritage Study and Environment, Travel and Tourism, Social Studies were organised by the AMO for teachers of primary and secondary schools. The AMO also encouraged young people to participate in workshops, field studies, lectures, environment improvement exercise at historic sites and processing of archaeological finds.
The AMO also promoted the awareness of the general public in heritage preservation by staging the photo-exhibition Hong Kong Going and Gone - Views of Sheung Wan and Western District and the exhibition on Heritage of the Southern District. It also helped the Southern District Board, in publishing a booklet introducing the history, monuments and traditions of the Southern District, and the Central and Western District Board in erecting 13 commemorative plaques along the Yat-sen Trail in the Central and Western districts.
Lord Wilson Heritage Trust
The Lord Wilson Heritage Trust was established in December 1992 to give the community an opportunity to express its appreciation of Lord Wilson's contribution to Hong Kong during his term as Governor. It aims to promote and help fund the preservation and conservation of Hong Kong's cultural heritage.
During the year, the trust oversaw an exciting range of activities, including the School Heritage Festival jointly presented by the AMO and Education Department in March. Funding support was also given to publish heritage-related school projects for distribution to schools and cultural organisations.
The trust sponsored the production of the Cantonese version of a TV programme on Hong Kong's Heritage for free distribution to schools and cultural organisations.
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| Boardsailer Lee Lai-shan waves to
thousands of people gathered to welcome her back to her family home on Cheung Chau Island after she won the first gold medal since Hong Kong entered the Olympic Games in 1952. The Games were held in Atlanta, USA, in August. In the same venue a fortnight later, Hong Kong won more gold medals at the Paralympics.
BELOW: Fireman Ben Cheung Wai- leung (centre), who lost a leg while trying to rescue a woman during a typhoon in 1983, won four gold medals in fencing. He is pictured at Kai Tak Airport on return with 100-metre relay champions (from left): Chan Shing-chung, So Wa-wai, Chiu Kwok-pang and Cheung Yiu-cheung. The team won nine gold medals overall.
Swimming and watersports are Hong Kong's favourite summer pastime, and these enthusiasts demonstrate their skills on the marine motorcycles near Sai Kung. BOTTOM: World-ranking professional cyclists came to
Hong Kong for the inaugural East China Tour from the territory to Beijing and were surprised by the calibre of local riders.
SBO
WA MSITURE
Several marathon, half-marathon and other middle-distance races are run during Hong Kong's cooler months, and attract fields of up to several thousand people. Fresh air and pleasant scenery, like this setting at Plover Cove, help to ease some of the strain. LEFT: Public driving ranges, such as this one at Tuen Mun, are very popular and busy at the weekends.
NEXT PAGE: A paraglider launches into flight over Big Wave Bay on south-eastern Hong Kong Island near Shek O.
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An English version of the same TV programme was also produced and screened from March to June.
Funding support was given to reprint more copies of Historic Hong Kong leaflet for distribution at both local and overseas outlets of the Hong Kong Tourist Association.
Urban Council Public Libraries
The year witnessed a significant step forward for the library expansion programme. Five new libraries, Tsim Sha Tsui, Un Chau Street, Hung Hom, Smithfield and Wong Nai Chung, were opened. Two more libraries, the Yiu Tung Library and the San Po Kong Library, were preparing to open in early 1997. The council now operates 36 libraries in the urban areas.
After an open public seminar held in May to collect public views on the services and facilities of the Hong Kong Central Library, the construction of the Central Library started in August. When completed in mid-1999, it will be the largest purpose-built public library in the territory, able to hold two million items of library materials. It will be the main library of the council's public library system with a central reference library and more than 400 public access terminals and microcomputers for searching local and overseas catalogues, multi-media programmes and online databases through the Internet.
The year also saw the formulation of a Five-Year Plan on the council's library services, which sets the direction of the council's library services for the period 1997-98 to 2002-03. The plan was prepared based on the findings of a comprehensive review, as well as feedback from a public opinion survey. It shows the council's commitment to further improve its public library services to the public to meet their educational, informational, cultural and recreational needs. The plan covers, inter alia, the extension of the library opening hours, the increase in the target provision of library materials from one item per capita to two items per capita, as well as adjusting the planning standard for district libraries from one library for every 200 000 people to one for every 100 000 people. Two public forums on the Five-year Plan were conducted by the Urban Council.
Library use continued to rise during the year after more libraries opened and the borrowing limit was raised from three to five items per reader. In all, 13.81 million items were borrowed in the year, and 26.77 million books were read in the libraries. The library collection also continued to grow and the system now houses a total of 3.3 million books and 212 000 audio visual items, including audio-cassettes, gramophone records, audio compact discs, video compact discs, video-cassettes, CD- ROMs, Compact Disc-Interactive (CD-I) and computer programmes. The libraries also subscribed to more than 5 750 titles of local and overseas newspapers and periodicals.
The library computerisation system began full operation in March 1995 and now supports more than 400 terminals. Computerisation has brought about better services to the public. Readers can return their borrowed items to any Urban Council libraries. They can also borrow books in the Urban Council libraries with library cards issued by the Regional Council libraries. Plans are in hand to enhance the system in the coming years by introducing public access to the libraries' on-line catalogue through the Internet, renewal of borrowed library materials by telephone, and self-charging terminals.
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The reference services were well used during the year. Library staff handled a total of 348 597 reference enquiries and 1.49 million items of reference materials were consulted in the libraries. The CD-ROM network provides concurrent access to the CD-ROM databases in City Hall Reference Library from the Kowloon Central Library, Arts Library and all district libraries. The reference libraries have built up more than 1 900 CD-ROMs, including many multi-media and full-text databases. On- line searches of local and overseas catalogues and commercial databases are available through the Internet. As a depository library for seven international organisations, the City Hall Reference Library receives full sets of publications from the United Nations, the World Bank, the Asian Development Bank, the United Nations Educational, Scientific and Cultural Organisation, the World Trade Organisation, the World Food Programme and the International Labour Organisation.
Outreach programmes continued to form an integral part of the library services. To arouse interest in literary appreciation, awards were presented in the year for creative writing in Chinese, drama criticism in Chinese and the best-produced books in Hong Kong. A competition for students on story writing in Chinese was also organised and literary workshops were arranged to promote Chinese creative writing among students.
A major reference work on local literary writers, Bibliography of Hong Kong Literary Writers, by the council's first Writer-in-Residence, Mr Liu Yi-chang, was published in the year. A new Writer-in-Residence programme was launched in the year, commissioning Mr Ng Wan-man to carry out a research project on literary publications of the local literary societies and bodies in the '60s and '70s. Mr Ng's research will also be published for sale by the council.
A new reading programme was jointly organised this year with the Hong Kong Teacher Librarians' Association to further encourage students' participation and promote reading in schools. Activities such as thematic talks and meet-the-author sessions were organised for the members. Since the programme began in 1984, a total of 137 400 readers have registered with the programme and they have read more than 2.09 million books.
A Hong Kong Literary Festival on the theme of Hong Kong literature in the past 50 years was being planned for January 1997. It will include a large-scale exhibition, a seminar by local and overseas writers and scholars, meet-the-author sessions, workshops, competitions and performances, production of literary videos, film shows and seminars as well as publication of a collection of essays on Hong Kong literature. A wide range of other outreach programmes including books and arts exhibitions, interest clubs, subject talks, children's hours and library visits were organised. In all, some 3.42 million people took part in the council's literary and outreach programme in 1996.
Regional Council Public Libraries
The Regional Council operates 26 libraries, including three central libraries, 19 district libraries and four mobile libraries. Installed with one of the largest automated bilingual (Chinese and English) library systems in the world, these libraries provide fast book return, borrowing and reservation services and an online catalogue to members of the public.
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They have a registered membership of 1.22 million and a total stock of 2.32 million books and 164 000 audio-visual items. They issued 10.37 million books and audio- cassettes for home use in 1996. The Sha Tin Central Library and Tsuen Wan Central Library are the most heavily patronised public libraries in Hong Kong.
Books Registration Office
The Books Registration Office is under the administration of the Television and Entertainment Licensing Authority. It is responsible for the registration of books first printed, produced or published locally. A bibliography of registered books is gazetted at quarterly intervals.
In 1996, a total of 7 200 books and 10 119 periodicals were registered with the office, which is also the local agent for the International Standard Book Numbering System (ISBN). During the year, 243 new publishers' identifiers conforming to ISBN were issued.
Sport and Recreation
Sports and recreational facilities and activities are many and varied in Hong Kong. The Urban and Regional Councils develop and manage facilities which include sports grounds, playgrounds, indoor games halls, holiday camps, swimming pools and beaches. The two councils also organise training courses, sporting competitions and other activities for people of all ages and abilities, and encourage passive recreation by providing parks and landscaped open spaces.
The Sir David Trench Fund for Recreation provides grants for the construction and improvement of recreational and sporting facilities, and for the purchase of equipment for sport and recreation.
Hong Kong Sports Development Board
The Hong Kong Sports Development Board is the statutory body responsible for the promotion and development of sport and physical recreation in Hong Kong. In 1995-96, the government allocated $71.5 million to the board. Of this, over $42.4 million was used to support the Amateur Sports Federation and Olympic Committee of Hong Kong and the National Sports Associations (NSAs) in meeting personnel, office, sports programme expenses and financing the staging of major international
events.
The concept of identifying target sports and providing them with additional resources for development is one of the fundamental pillars of Hong Kong's sports policy. For 1995-96, eight target sports were identified: badminton, rowing, squash, swimming, table tennis, tennis, windsurfing and wushu, while football, basketball and rugby became part of the new Focus Team Sport category.
Progress has been made in the coach education field since the inception of the Hong Kong Coaching Committee in 1991. One of its major components is the Hong Kong Coach Education Programme. By the end of March 1996, 4 500 coaches from 39 NSAS in 48 different disciplines had participated in the Hong Kong Coach Accreditation Programme, a major component of the Hong Kong Coach Education Programme.
The board has injected considerable effort and resources into junior sports development. Under the Go!Sport Programme, over 38 per cent of all primary and
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secondary schools have become involved and more than 50 celebrities have accepted a role as programme ambassadors.
Through providing regular practice opportunities and frequent competition to those interested in sports, the Community Sports Clubs Programme had established 60 clubs in 1995-96 in 14 sports and had attracted some 3 000 people to enrol in the clubs.
The Sports Aid Foundation Fund and the Sports Aid for the Disabled Fund, administered by the board, distributed a total of $3.2 million to 32 elite, 26 potential and 31 disabled athletes in 1995-96 to help with their training and competing expenses. The cash incentives introduced in 1994 for the Asian Games were extended to cover the Olympics, Paralympics, Asian and World Universiade in 1996. The sum of $1 million was offered as an incentive to gold medallists in the Atlanta Olympics. The board has also been active in securing additional funds from the commercial sector in support of development programmes organised by the NSAs. Since the inception of the Sports Sponsorship Advisory Service in 1991, it has generated more than $62 million in sponsorship support.
Amalgamated with the Sports Development Board since April 1994, the Hong Kong Sports Institute (HKSI) provided support to 20 sports at four levels in 1995-96, with a sharp focus on high performance. A total of 263 athletes were granted HKSI scholarships. Support provided by the institute including coaching, sports science and medicine, athlete education and career development. This played a significant role in helping to produce some excellent results in 1995-96.
In 1995-96 the Sport Development Board published its second Strategic Plan for sport, covering the period from 1996-2000. The planning process started in July 1994, when various agencies in sport were asked to determine the priority areas for consideration, and took 15 months to complete, including a period of public consultation.
Sporting Achievements
Hong Kong athletes took part in many international competitions in 1996. Windsurfer Lee Lai-shan won a gold medal, Hong Kong's first Olympic Games medal, in the Women's Mistral Class (boardsailing) event. Earlier, she won a silver medal in the ladies' open event at the 1996 International Mistral Class World Championships and topped the women's overall world rankings set by the International Yacht Racing Union.
Disabled fencer Ben Cheung Wai-leung won an unprecedented four gold medals at the Paralympics, held in Atlanta, USA, immediately after the Olympics.
Hong Kong swimmers took one silver and nine bronze medals in the Swimming World Cup Hong Kong 1996, while the territory's orienteering, rowing, shooting, squash and taekwondo athletes won a total of 21 gold, 26 silver and 27 bronze medals at their respective Asian Championships in 1996.
Amateur Sports Federation and Olympic Committee of Hong Kong
The Amateur Sports Federation and Olympic Committee of Hong Kong was founded in 1949/50 and recognised as a National Organising Committee in 1951. It has been responsible for organising Hong Kong participation in major events such as the
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Olympics, Commonwealth, Asian, East Asian and Universiade Games. With a membership of 66 national sports associations, it is the acknowledged voice of sport in Hong Kong.
In conjunction with the municipal councils, the federation co-ordinates the Annual Festival of Sport held since 1958. It also organises education programmes for sports leaders, administrators, coaches and technical officials. Since the early 1970s, many sports leaders and athletes have been sponsored to attend and participate in local and overseas conferences and seminars, such as the annual International Olympic Academy at Olympia.
In conjunction with the International Olympic Committee (IOC), Olympic Solidarity courses and programmes were organised through various national sports associations (NSAs) attended by both local and overseas delegates. Through the Hong Kong Coaching Committee, over 4000 participants have received coach training programmes during the past four years. In co-operation with the United States Olympic Academy and the University of Oregon, courses on various aspects of sports management and sports science were offered free of charge to the NSAS. Special conferences and seminars on sports medicine and sports science were also organised in conjunction with the Hong Kong Association of Sports Medicine and Sports Science and the Hong Kong Post-Secondary Colleges Athletic Association. These educational activities attracted participants from the territory, Mainland China, and other parts of the world. The IOC has praised and cited the federation for offering such a comprehensive educational programme.
Urban Council Sports and Recreation Facilities
The Urban Council (UC) provides and manages sports and recreational facilities, and runs low-cost introductory classes for people of all ages. It also encourages and promotes sporting activities by subsidising competitions organised by the various governing bodies.
It operates 41 indoor games halls, 16 swimming pool complexes, 136 tennis courts, 185 squash courts and eight sports grounds.
Capital work completed on Hong Kong Island included the UC Smithfield Complex Indoor Games Hall, UC Wong Nai Chung Complex Indoor Games Hall and Siu Sai Wan Sports Ground.
In Kowloon, recreational facilities completed included the Po Kong Village Road Indoor Games Hall, Sin Fat Road Tennis Courts, Ma Chai Hang Recreation Ground and Salisbury Garden.
Good progress was made in the development of the UC Ap Lei Chau Complex in Southern District, the Sai Wan Ho Leisure Centre in Eastern District, the Lai Chi Kok Park Stage II and Shek Kip Mei Park Indoor Games Hall in Sham Shui Po District, the Lok Kwan Street Park in Mong Kok District, the Hong Ning Road Park (Phase I) and Shun Lee Tsuen Recreation Ground in Kwun Tong District, and Ho Man Tin Recreation Ground in Kowloon City District.
Regional Council Sports and Recreation Facilities
To promote recreational and sports activities, the Regional Council organised a total of 7 461 training courses, competitions and recreational programmes for 482 697 people of all ages and abilities in 1996. A total of $25.46 million was allocated for the
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organisation of a variety of programmes, including athletics, water sports, ball games, racket games, fitness, dance, tai chi, camping excursions, golf and lawn bowls.
The council has subsidised national sports associations and non-profit-making organisations through the Sports Subsidy Scheme since 1986 to promote participation in recreation and sport. In 1996, subsidies amounting to $6.7 million were allocated to support 2 737 projects, benefiting 242 749 people. It also maintained close liaison with various local organisations in promoting recreational and sports activities in the nine New Territories districts. In all, 281 programmes were co-organised with local organisations and drew 25 313 participants. One example is the joint venture with the Hong Kong Table Tennis Association to organise the 'Low Table Ping-Pong Development Scheme' to promote table tennis to children in the council area.
During the year, various sports development programmes such as golf, table tennis, lawn bowls, wushu, football, ballet, squash and walking were organised for 45 266 youths.
Venues
There are 14 sports grounds, 15 swimming pool complexes, 32 indoor recreation centres, 120 tennis courts and 118 squash courts in the council area.
The Tuen Mun Golf Centre has become very popular among the general public and about 67 000 participants have registered as card users since its opening in February 1995.
The council has three water sports centres (Chong Hing, Tai Mei Tuk and Wong Shek) and three holiday camps (Lady Maclehose Holiday Village, Sai Kung and Tso Kung Tam Outdoor Recreation Centres). During the year, 56 666 and 355 337 people visited the water sports centres and the holiday camps respectively.
Regional Council 10th Anniversary Programmes
The Regional Council 10th Anniversary Programmes organised in 1996-97 included a wide scope of cultural, recreational, sports, environmental health and entertainment programmes and activities for the participation and enjoyment of people of all ages. With the theme 'Striving for the Best', the year-long festivities featured some 35 major programmes and over 100 district events held throughout the nine districts of the New Territories. The programmes also incorporated the biennial Regional Council Festival in 1996.
Through active public participation, the 10th Anniversary Programmes aimed at enhancing community support and awareness of the multi-faceted service and facilities provided by the council to ensure a fuller life and a healthier environment for residents.
Corporate Games
The Corporate Games, organised for the working population, attracted some 8 200 participants from 249 industrial and commercial organisations in 1996. The Masters Games, held specially for the age group 35 and above, attracted more than 1 200 participants.
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District Festivals Subsidy Scheme
Under its District Festivals Subsidy Scheme, the council provides financial support to fund the launching of district arts and entertainment, festive, sports and recreation events in celebration of traditional festivals. Districts were allocated some $10.6 million in 1996-97 in support of 65 festive celebrations with more than 800 000 participants.
Beaches and Swimming Pools
Swimming is Hong Kong's most popular summer pastime. In 1996, some 17.3 million people visited the beaches and another 7.7 million swam at the 31 public swimming pools managed by the two municipal councils.
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There are 41 gazetted bathing beaches 12 on Hong Kong Island managed by the Urban Council and 29 in the New Territories and outlying islands managed by the Regional Council.
The two councils managed 16 public swimming pool complexes in the UC area and 15 in the RC area. The competition pools in these complexes are built to international standards. Following the successful installation of water play equipment at Chai Wan and Lei Cheng Uk swimming pools, the UC installed similar water equipment in Pao Yue Kong, Kowloon Tsai and Lai Chi Kok Park swimming pools. The second phase of the programme, including another six existing pools, will commence next year.
The RC also provides facilities such as water slides and splash pools, which are very popular with youngsters, at its Hin Tin, Sheung Shui, Tai Po, Tsuen Wan, Tuen Mun and Tin Shui Wai swimming pools. To eliminate the potential hazard of chlorine leakage, the council has started to replace the existing chlorine gas dosing system with an ozone water treatment system at 10 swimming pools. Work on eight pools was completed in May 1996.
Over the past few years, sharks have been sighted in Hong Kong waters in early summer. For the safety of swimmers, the municipal councils have installed shark prevention nets at 11 gazetted beaches.
The councils regularly organise learn-to-swim classes, and more than 39 651 people attended 2 147 swimming classes and training programmes during the year.
The councils encourage the formation of lifeguard clubs at their swimming venues to help maintain a steady supply of voluntary lifeguards to augment the regular lifeguard services. At the end of the year, 13 and eight lifeguard clubs operated in the UC and RC areas, respectively. To get the water safety message across to the public, the Urban Council launched another water safety campaign in 1996.
Ocean Park
Ocean Park, on the southern side of Hong Kong island, covers 87 hectares. It is South-East Asia's largest oceanarium and Hong Kong's premier park for recreation and entertainment. Ocean Park hosted 3.3 million guests in 1994/95, and has received more than 40 million visitors, including 8 million tourists, since it opened in 1977.
The park's diverse and quality attractions include the cable car, various world-class exhibits such as the Atoll Reef, Wave Cove, Shark Aquarium, Bird Paradise, the Butterfly House, and the 3 500-seat Ocean Theatre for marine mammal shows, together with an exciting array of thrill rides. Middle Kingdom features a walk
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through 5 000 years of Chinese history, and Water World provides great splashing fun during the summer.
In 1991, the park unveiled a long-term development plan to add new attractions, upgrade existing facilities and improve guest services. The summer of 1996 witnessed the addition of the high-tech Film Fantasia simulator ride to offer guests an unforgettable multi-sensory simulation experience.
Ocean Park's commitment to conservation was further realised by the inauguration of its Conservation Square and the Signature Brick Programme in January to solicit support for the Ocean Park Conservation Foundation, which was set up to co- ordinate regional efforts in the conservation of endangered whales and dolphins.
Hong Kong Outward Bound School
The Outward Bound Trust of Hong Kong Limited is a registered charity and part of a world-wide network of more than 40 schools, providing adventure-based training programmes for personal and professional development in an outdoor environment on land and sea.
Outward Bound is about building the type of character a person needs for the adventure of life. By bringing people face to face with unfamiliar surroundings and working together in close-knit teams, Outward Bound* allows people to develop skills they need in everyday life but can't learn from books such as communication, problem-solving, leadership, team work, and decision-making.
Besides open courses for the general public, special programmes are run for the handicapped, socially-deprived people and juvenile delinquents as well as employees of major corporations, the government and various other organisations.
With the commitment of $1.6 million in 1996-97 from the Broadcasting, Culture and Sport Branch to provide bursary support for needy youth, the school was able to stabilise and increase its ability to encourage families with limited financial resources and difficult social circumstances to participate in Outward Bound(r) training.
The Wing Fung and Yat Fung, a new generation of sailing boats, better known as 'luggers', have secured sponsorships of $360,000 each from the Swire Group Charitable Trust and Duty Free Shoppers Charitable Trust respectively. These two boats, which are the world's only examples of their kind, are extremely safe and simple to sail.
In May, the 132-foot brigantine Ji Fung became the first sailing ship to sail on the Brunei River since 1911. The Britannia's visit in the 1970s with Queen Elizabeth on board was the last time a larger ship had called.
The main purpose for the visit was to support the involvement of Brunei Shell Tankers Sendiran Berhad and the Brunei Navy in Outward Bound training. Other reasons included raising the Outward Bound profile in South-East Asia; increasing media exposure for Outward Bound Brunei and Outward BoundR Hong Kong; developing new markets for the Hong Kong school; and providing trainees of the International Diploma course with a rich cultural exchange experience.
Though the 'royal' visit is over, it is hoped that Ji Fung will continue to serve the interests of Outward Bound to her best ability and to act as its ambassador locally, regionally, or internationally.
RECREATION, SPORTS AND THE ARTS
Adventure Ship
The Adventure Ship Project has operated in Hong Kong for 19 years. It is a registered charity which maintains the 27.5 metre Chinese sailing junk, Huan, providing nautical training trips for underprivileged and handicapped children. The project is mainly funded by the Community Chest and the Hong Kong Jockey Club (Charities) Ltd.
Each year, more than 6 000 young people from child and youth centres, institutions for the handicapped, outreach teams and schools benefit from these programmes. The training programmes consist of day trips or overnight trips (up to three days and two nights). The vessel can accommodate 60 youngsters on day trips and 50 on overnight voyages.
'Disciplined Entertainment' is the main theme of the training. Once on board, participants are regarded as members of the crew and take part in the operational routines. Under the guidance of experienced instructors, they are trained to face new challenges and participate in team-spirit building activities.
The programmes have been devised to cope with various weather conditions and the special requirements of children of different aptitudes and backgrounds. The Adventure Ship Project has created new horizons for many thousands of young people, enabling them to enrich their experience while discovering the beautiful scenery of Hong Kong.
Hong Kong Youth Hostels Association
The Hong Kong Youth Hostels Association (HKYHA) is a long-established non- profit-making voluntary organisation that receives no government subsidies. It is a member of the very popular International Youth Hostel Federation which has a global network of around 5 000 youth hostels in over 60 countries.
The association is managed by an executive committee comprising respectable personalities in the local community. Currently it runs seven youth hostels in various scenic locations: Ma Wui Hall in Mt. Davis, Hong Kong Island; Bradbury Lodge in Tai Mei Tuk, North-East New Territories; Bradbury Hall in Chek Keng, Sai Kung Country Park; Pak Sha O Youth Hostel in Pak Sha O, Sai Kung; Sze Lok Yuen in Tai Mo Shan; and, on Lantau Island, The S.G. Davis Hostel at Ngong Ping and Jockey Club Mong Tung Wan Hostel.
Through the provision of very modestly priced, clean and comfortable hostel accommodation, the HKYHA offers Hong Kong people with leisure opportunities both within the territory and overseas. It aims to promote love and care for the countryside among the young and the young-at-heart. It also aims to promote better understanding of different cultures through the global network of the International Youth Hostel Federation. HKYHA members are entitled to use the federation's more than 5 000 hostels world-wide.
The HKYHA saw another year of progress in 1996. In order to improve hostel facilities in a more effective and systematic way, a buildings sub-committee was set up in the year to oversee buildings and maintenance works.
Major hostel improvement projects completed last year include: the installation of air-conditioners and locker facilities at hostels, the erection of road signs at key
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locations along main access leading to hostels, the repainting of interior walls at Ma Wui Hall and the replacement of all dormitory beds at The S. G. Davis Hostel.
A shuttle bus service has been introduced at Ma Wui Hall running to Shun Tak Centre in Sheung Wan. The new service provides convenient transport and has proved to be welcome by hostel guests.
Urban Council Parks
Kowloon Park and The Urban Council currently manages two large modern parks Hong Kong Park. Kowloon Park's attractions include a sports complex with an Olympic pool, indoor and outdoor leisure pools and an air-conditioned indoor games hall. The park also contains a history museum, an aviary, a bird lake, a sculpture walkway, a creative playground and a garden piazza for staging cultural and entertainment activities.
Hong Kong Park was a joint venture between the Urban Council and the Royal Hong Kong Jockey Club. The latter donated $170 million towards the total construction cost of $398 million. Its facilities include a walk-in aviary, a conservatory, an indoor games hall, a squash centre, a teaware museum and a visual arts centre. Educational activities are organised in the park for school children, with an emphasis on conserving the natural environmental and wildlife resources.
Kowloon Walled City Park
The Kowloon Walled City Park, funded and constructed by the government on the former Kowloon Walled City site, was completed in September 1995. The park provides a Chinese-style landscaped garden with the restored Yamen building as a focal point. Relics of the Walled City, including two cannons, five stone inscriptions and tablets are displayed in the park, which was handed over to the Urban Council for management and opened to the public on December 22, 1995. About 389 000 people visited it in 1996.
Zoological and Botanical Gardens
The Hong Kong Zoological and Botanical Gardens occupy a 5.35-hectare site overlooking Government House, and form the oldest public gardens in the territory. They were established between 1861 and 1871, divided by Albany Road. The old garden, on the east side of the road, houses an extensive bird collection while the newer garden, opened in 1871, is the home for mammal and reptile exhibits. The botanical section is mainly located in the old garden.
The gardens house 19 endangered species of mammals, birds and reptiles. Despite its urban environment, it is a successful breeding centre. Its bird collection is one of the most comprehensive in Asia, with about 880 birds of 300 species. More than 100 of these species have reared young. Although less comprehensive, the mammal collection is varied, including such diverse creatures as the echidna, an egg-laying mammal, and the jaguar, the world's third-largest cat.
More than 750 species of trees, shrubs, creepers and foliage plants are featured. The medicinal plant collection, established in 1987, and a new greenhouse built in 1993 have generated much interest. They contain some 500 species of herbs, orchids, ferns, cacti, succulents and other indoor plants. During the year, a new jaguar enclosure
RECREATION, SPORTS AND THE ARTS
was completed in August 1996. Meanwhile the orangutan enclosure is under renovation.
Regional Council Parks
The Regional Council manages more than 587 parks and gardens of various sizes, including six major parks. Tuen Mun Park is the largest park in the New Territories, covering 12.5 hectares. It has an ornamental lake for rowing and a 160-metre water cascade, the largest of its kind in Hong Kong.
North District Park covers 9.6 hectares and is provided with a sports hall, amphitheatre, artificial lake and children's playground. The 8.5-hectare Sha Tin Park, with its Chinese garden and adventure playground, is the most popular with New Territories residents.
Special features of the 7.5-hectare Yuen Long Park include a seven-level pagoda with a built-in aviary which houses more than 180 birds of 51 species. The newest park, Tin Shui Wai Park, covers 7.5 hectares and includes an amphitheatre and children's play area.
Country Parks and Marine Parks
Despite Hong Kong's dense urban environment, opportunities for outdoor recreation are not lacking. There are 22 country parks provided with barbecue sites, picnic sites, camp sites and extensive hiking trails. In 1996, over 10 million visits were made to these parks covering some 40 per cent of the territory's total land area.
The first batch of marine parks, including Hoi Ha Wan Marine Park and Yan Chau Tong Marine Park, was designated in 1996. These marine parks will provide opportunities for nature education and public enjoyment of our marine environment. The Director of Agriculture and Fisheries is the Country and Marine Parks Authority responsible for the provision and management of recreational facilities.
Horticulture and Landscape Services
Urban Council
The Urban Council is committed to improving the urban environment with landscaping and tree preservation. The services include landscape design and planting, plant production, horticultural research, tree maintenance and
conservation.
During the year, the council completed 40 landscape projects and planted approximately 38 000 trees and 1 million flowering shrubs. About 90 per cent of these plants were supplied from the council's nurseries, with the balance coming from commercial nurseries.
Regional Council
The Regional Council maintains 697 hectares of greenery in parks, gardens, sports grounds, soccer pitches, games areas and children's playgrounds in the New Territories. It also manages amenity plots and soft landscape along highways and roads. In 1996, more than 472 000 plants were planted in parks, playgrounds and roadside amenities.
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The council manages four nurseries in Sha Tin, Tai Po, Tsuen Wan and Tuen Mun. The Tung Tze Nursery in Tai Po, which covers four hectares, is the biggest. In 1996, the four nurseries produced 10 000 trees, 144 000 shrubs, 105 000 ground covers, 3 000 creepers and 200 000 seasonal flowers.
Hong Kong Flower Show
Since 1987, the two municipal councils have jointly organised the annual Hong Kong Flower Show. The show has grown in size and popularity by the year, and has also provided many other interesting activities such as floral arrangement demonstrations and talks on Chinese medicinal plants for the enlightenment and enjoyment of all. More than 70 local and overseas horticultural organisations took part in the 1996 Show held at Victoria Park in March. It drew a record number of more than 480 000 visitors during the 10-day show period.
Green Hong Kong Campaign
The Urban Council's Green Hong Kong Campaign is in its third year and continues to focus on three elements: community involvement, education and tree-planting. Under the newly introduced Green Hong Kong Ambassador Scheme 'green' ambassadors were recruited to carry out horticultural maintenance tasks in Urban Council venues on a voluntary basis. Such services started at the Kowloon Park and extended to all other major venues. Other community involvement programmes such as the Lotus Show, Green Hong Kong Carnival and Green Urban Project Awards attracted a good level of public support.
The school visit programme continued to expand, and over 100 schools participated in the green school subsidy scheme, an increase of 30 per cent over last year's figure. To complement the major annual planting programme in parks and highways, some 1 500 standard trees and 20 000 saplings were planted along streets and on hill slopes respectively in order to make our city greener.
Summer Youth Programme
The territory-wide Summer Youth Programme, bearing the central theme 'Share the Fun, Serve the Community', is organised each year for children and youth aged from six to 25. Social, recreational and community activities are held for participants to widen their knowledge, develop their skills, appreciate human relationships, understand the community in which they live and enhance their sense of responsibility to the community.
In 1996, the programme was officially launched on July 6. About 14 900 activities were organised involving 1.05 million young people. The total expenditure was around $51 million. The Hong Kong Jockey Club donated $17.6 million and the balance was met by the government, district boards, private donations and participants' fees. Summer Youth Programme Scholarships were awarded to 44 outstanding volunteers and they attended local or overseas courses organised either by the Summer Youth Programme Committee or other institutions.
24 THE ENVIRONMENT
SINCE the publication of its first White Paper on the environment in 1989, the Hong Kong Government has moved rapidly and invested large sums of money to correct past environmental abuses and prevent future abuse. The territory's environmental problems are common to most developed communities. Its rapid growth of population, industry and commerce remain at the root of pollution by human activities.
Government spending on the environment in 1996-97 is expected to make up 3.1 per cent of public spending, totalling $7.08 billion, compared with 0.8 per cent in 1988-89. All areas in Hong Kong are now covered by various Water Control Zones and other measures controlling waste, air and noise pollution.
A $9.4 billion programme of sewerage improvement schemes should be com- missioned in 1997. It is designed to help clean up Victoria Harbour, where up to 70 per cent of the territory's sewage is discharged untreated, and to improve sewage services in other areas. With the commissioning of the last strategic landfill in 1995, all three new strategic landfills are now in operation. They will be served by a network of refuse transfer stations, three of which are already operational. Provision of these essential waste management facilities marks an important milestone in the implementation of the Waste Disposal Plan, which was published in 1989.
Under the 'polluter pays' principle, schemes to charge for the treatment and disposal of sewage and chemical wastes were introduced in 1995.
To abate air pollution, measures were introduced to adopt more stringent vehicle emission controls in line with international standards and to prohibit open burning activities. As part of a global programme, 89 ozone-depleting substances were put under legislative control.
New legislation to control noise emissions from newly registered motor vehicles and motor cycles came into operation in August 1996. The control will enable Hong Kong to keep up with international standards, and will help to alleviate road traffic noise problems. Tightened control on noise from construction work in populated areas was also implemented in November 1996. The control bans all noisy construction activities in built-up areas at night and during holidays.
The government and a private organisation launched parallel green funds, totalling $100 million, to fund educational, research and community action projects and activities which will benefit the environment of Hong Kong, increase public environmental awareness and mobilise the community to act for the environment.
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The State of the Environment
A 1989 White Paper entitled Pollution in Hong Kong - A Time to Act acknowledged that the environment was in an unsatisfactory state largely because of the earlier lack of emphasis placed on this area by the government. Measures have been introduced over the years to ensure that decision-makers give greater emphasis to environmental matters. In December 1993, the government issued A Green Challenge for the Community, which was its second review of the 1989 White Paper.
Aside from stressing the need for public awareness and participation to improve the environment, the document examined the progress of the government's environmental protection programme, set down the basis for action and explained new initiatives for improving the performance of the government and the community. It emphasised the development of collective responsibility, including sustaining the environment, private sector participation and the adoption of the 'polluter pays' principle.
The third review was published in March 1996, reporting on the progress of environmental programmes stipulated in the 1989 White Paper and setting the course for preventing environmental problems and promoting sustainable development.
Urban Environmental Quality
The government has put a lot of resources and effort into meeting the challenges of Hong Kong's older urban areas. These consist of dense housing mixed with commerce and industry and an infrastructure that falls short of modern standards. Incompatible neighbouring uses, air and water pollution, noise, and waste disposal problems are common.
Hong Kong's objectives for air quality are comparable with internationally recognised air quality standards for the protection of public health. The actual air quality does not always meet the objectives. Total suspended particulates, respirable suspended particulates and nitrogen dioxide levels are high on occasions.
In 1996, the highest annual averages recorded were 136 micrograms per cubic metre of total suspended particles and 73 micrograms per cubic metre of respirable suspended particles, both at levels above the objectives. Nitrogen dioxide levels were a significant proportion of the objective value of 80 micrograms per cubic metre. Emissions from motor vehicles are the main source of these pollutants. Further cleaner fuel and tighter emission standards for diesel vehicles will be introduced in 1997.
Noise from road, rail and aircraft operations continue to be a major problem despite the adoption of various mitigation measures. From August 1996, the noise emission from newly registered vehicles has been controlled to help alleviate road traffic noise problems. Construction noise is also of particular concern due to the great number of infrastructure and major housing projects. New controls were therefore put in place in November 1996 to further restrict construction activities at night and during holidays in populous areas.
Water pollution has increased with urban development. Of the two million tonnes of sewage produced per day in Hong Kong, three quarters discharge into Victoria Harbour with only screening out of the solid material. Water quality in Victoria Harbour remains poor, but significant improvements will be seen when the first stage of the Strategic Sewage Disposal Scheme - which will treat 70 per cent of the flows
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entering the harbour is completed. As a prelude to the implementation of this scheme, the Water Pollution Control Ordinance has now been extended to cover the whole of the territory and strict control of polluting discharges is being exercised.
Comprehensive controls on the handling and disposal of chemical waste began in May 1993 with the opening of the Chemical Waste Treatment Centre and full implementation of the Waste Disposal (Chemical Waste) (General) Regulation. Hong Kong can now stop the widespread malpractice of dumping chemical waste into the territory's sewers and surface waters. The total amount of toxic metal discharged into Victoria Harbour was cut by 1 700 kilograms per day during 1996.
The Environment of New Towns
The recently developed new towns face some of the environmental problems as in the old urban areas. They have been better planned, with more open space, sewerage and waste disposal facilities, but water pollution persists in rivers, streams and the sea due to increased human activities. The inland and coastal waters of all new towns have now been declared Water Control Zones and discharges in these areas are controlled. Under the Waste Disposal Ordinance the keeping of livestock within the boundaries of the new town areas is banned. Also, sewers are being provided to previously unsewered village areas. These measures are slowly having an effect on the urban watercourses, the quality of which is steadily improving.
Rural Areas and the Sea
Many waterways in the New Territories are still severely polluted and some streams are no better than open sewers. This pollution poses a serious health risk to the public when it passes through villages.
Much of this pollution is caused by the territory's livestock industry. Before 1987, the 700 000 pigs and 12 million poultry produced a total of 840 000 tonnes of waste. This was equivalent to the pollution load of the raw sewage from more than 1.6 million people. Most of it ended up in Hong Kong's small streams and rivers and eventually, the sea. By the end of 1996, this load had been reduced to about 170 000 tonnes through controls under the Waste Disposal Ordinance.
Bathing beaches are an important recreational resource. To safeguard the public against swimming in polluted waters, the Environmental Protection Department has adopted strict E. coli (a bacterium) standards for water quality control in bathing beaches. These standards relate to the degree of faecal pollution and were devised after a very thorough study of the health risk facing local bathers. The following table shows how beaches were classified in 1995 and 1996.
Health risk cases per Number of beaches 1 000 swimmers
Annual Bathing season geometric beach rank mean of E. coli count per
100mL of beach water
1995
1996
Good
up to 24
Undetectable
16
13
Fair
25 to 180
10 or less
10
14
Poor
181 to 610
11 to 15
13
10
Very poor
More than 610
More than 15
4
4
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Beaches in the 'good' and 'fair' categories meet the government's water quality objective for bathing purposes.
Protecting the Environment
The Administrative Framework
The Planning, Environment and Lands Branch of the Government Secretariat has overall policy responsibility for the environment.
The Environmental Protection Department is responsible for pollution control and environmental management. Its tasks include: providing advice on policy; implementing programmes; environmental planning and assessment; enforcing and reviewing the effectiveness of all environmental legislation; planning and developing facilities for liquid and solid waste disposal; and promoting the concept and practice of environmental audit and environmental management systems.
The Agriculture and Fisheries Department is the main agency for nature and wildlife conservation. Its duties cover: designating and managing country parks, which cover some 40 per cent of the land area of Hong Kong; designating and managing marine parks; identifying and protecting areas of conservation importance; enforcing the protection of flora and fauna; providing advice on ecological aspects of environmental planning and assessment; and promoting public awareness of nature conservation.
Other departments also play an important part in protecting the environment. Planning for future land use and controlling developments in the urban and rural areas is undertaken by the Planning Department. The Drainage Services Department assisted by the Territory Development Department design, build, operate and maintain sewerage and sewage treatment and disposal facilities. The Urban and Regional Services Departments provide refuse collection services and maintain environmental hygiene. The Civil Engineering Department provides public dumping outlets for inert construction waste disposal. The Electrical and Mechanical Services Department operates refuse incinerators and promotes energy efficiency and conservation. The Marine Department clears floating refuse and oil from the harbour and enforces the law on oil pollution.
Planning Against Pollution
The past decade has witnessed great achievements in Hong Kong's efforts to pre- empt environmental problems through the application of an environmental impact assessment process (EIA) to policy, planning and project proposals. The environmental impact assessment process has now been brought into the highest level of decision making of the Executive Council and the Public Works Sub-committee (PWSC) of the Legislative Council's Finance Committee. The government requires that all policy proposals submitted to the Executive Council which are likely to bring about a significant cost or benefit to the environment, and all PWSC submissions, must contain an assessment on environmental implications.
Environmental Impact Assessment Bill
To implement a commitment in the Governor's 1994 Policy Address and to formalise the administrative environmental impact assessment process, an Environmental
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Impact Assessment Bill was gazetted and introduced to the Legislative Council in January 1996. The Legislative Council's Bills Committee completed its scrutiny of the Bill in December.
Environmental Monitoring and Audit
To ensure that the environmental performance of projects specified in EIA studies will be delivered in practice requires conscientious environmental monitoring and audit (EM&A). In 1992 the Environmental Protection Department set up an environmental monitoring and audit team, and subsequently Environmental Project Offices (ENPO) in West Kowloon and in Kwai Tsing to pre-empt and resolve environmental problems associated with the Airport Core Projects in the areas.
Monitoring and auditing have now become an integral part of the EIA process and often they are extended beyond the construction stage of a project into its operation. Hong Kong's EM&A activities have been highly rated by international peer review. In 1996, the department managed about 60 EM&A programmes for major projects, including the Airport Core Projects .
Land Use Planning
The technical part of the Territorial Development Strategy (TDS) Review was completed in 1996 and its findings released in July 1996 for public consultation until the end of the year. A strategic-level environmental assessment process was applied throughout the entire study, to identify major environmental issues, to integrate environmental factors into the strategy formulation and to consider various possible environmental implications of the long-term and medium-term strategies. Some environmentally undesirable development components were discarded during the process. The results also show that there would be potentially negative environmental impacts and possible deterioration of environmental quality in parts of the territory as a result of demand-led developments. Some of these issues could be resolved through timely provision of resources and more positive environmental measures, while others may require policy initiatives. This could be further considered in the context of the Study on Sustainable Development for the 21st Century (SUSDEV21) and other studies.
Environmental Sustainability
To protect the environment, project implementation through the application of the EIA process and the establishment of a statutory framework are necessary. The society has to proceed with socially responsible economic development while protecting the resource base and the environment for the benefit of future generations. Under SUSDEV21, the government will study how a framework integrating sectoral, environmental, economic and social policies and plans could be formulated. At the same time, in line with the international trend to place environmentally friendly discussion into corporate management, emphasis will be placed in the promotion of the introduction of Corporate Green Management and appropriate Environmental Management Systems such as the ISO 14000.
Cross-border Liaison on EIA and Environmental Planning
Hong Kong's environmental quality can both affect and be affected by that of its neighbours in Shenzhen and Guangdong. Environmental collaboration between
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Hong Kong and China to address environmental issues of mutual concern has been pursued for more than 15 years. The setting up of the Hong Kong-Guangdong Environmental Protection Liaison Group in 1990 has facilitated formal exchanges regarding trans-boundary environmental problems. The experience gained in the pioneering joint environmental assessment studies on the Shenzhen River regulation project has been found useful to the subsequent undertaking of joint studies related to the Strategic Sewage Disposal Scheme. A two-year, joint-monitoring study of Deep Bay was completed in December 1995 under the auspices of the Liaison Group. A similar joint study of the Mirs Bay began in May 1996.
Rural Developments
The government is committed to improving the quality of life in rural areas and to terminating or relocating land uses which pollute the rural environment. Village sewage improvement schemes have also been carried out in the rural areas of the New Territories.
A task force to clean up the environmental blackspots in the New Territories was set up in 1994 to bring improvement to areas identified as environmentally degraded. The initial focus is on the Shek Kong area and particular attention is being given to blackspots associated with container-related operations.
Hazardous Installations and Dangerous Goods Transport
Potentially hazardous installations (PHIs), such as explosives depots and chemical stores, and dangerous goods transport routes may pose a risk to nearby residents. Hong Kong has had no major disasters but global experience of large-scale accidents highlights the need for risk management.
Risk assessments have been completed on all PHIS in the territory. Planning studies and action plans concerning risk-mitigation measures have been completed or are being implemented and have substantially reduced the risk to the public. A similar risk management approach is being extended to cover the transport of dangerous goods.
Legislation and Pollution Control
Hong Kong has six main pieces of legislation to control pollution. They are the Waste Disposal Ordinance, the Water Pollution Control Ordinance, the Air Pollution Control Ordinance, the Noise Control Ordinance, the Ozone Layer Protection Ordinance and the Dumping At Sea Ordinance. Most of these include subsidiary regulations and other statutory provisions, such as technical memoranda, that give specific effect to the intentions of the principal laws.
The government has adopted a system of environmental quality objectives as a general principle in its pollution control laws. The objectives are set at levels that will protect conservation goals, such as the protection of public health or the preservation of a natural ecosystem. This system usually gives the required environmental benefit at the least cost. The limits it imposes on pollutant emissions are no more stringent or costly than is necessary to achieve the conservation goal. It also makes the maximum safe use of the environment's capacity to minimise pollution.
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Industrial and Commercial Emissions
Rapid growth of industry and commerce in Hong Kong has caused degradation of the environment. The penalty is being paid in the form of adverse ecological changes, a heavy but usually hidden financial burden on the community, and great risks to community health.
The government's pollution-control strategy aims not to harm industry and commerce, but to work in partnership with firms so that all may benefit from a better environment. There are often direct economic benefits to be gained from activities such as recycling and the adoption of clean technology in manufacturing. These methods are better than pollution-control techniques that have to be applied after a waste material has become a potential pollutant.
The government would prefer industry and commerce to recognise the benefits of waste minimisation and pollution prevention, but it is inevitable that laws are required. Nowhere is this more apparent than in the case of the Water Pollution Control Ordinance, which started with the first water control zone in 1987 and has been gradually extended to cover all Hong Kong waters. All effluent discharges are now under control.
The last phase of the final Water Control Zone in Victoria Harbour, which covers the northern part of Hong Kong Island from Quarry Bay to Kennedy Town, was declared on April 1, 1996. About 3 850 effluent producers were identified in the blanket surveys, and over 60 per cent were related to food businesses. In all, 2 222 dischargers had submitted applications for discharge licences before the deadline of December 1, 1996, for dischargers existing before April 1, 1996.
Public sewers are being provided for 92 rural villages and house owners are being requested to connect their sewage outlets to the new sewers. In 1996, 1 129 notices were issued to house or development owners under the Water Pollution Control (Sewerage) Regulation requiring them to connect to the public sewers. So far some 120 sewer connections have been made and a total of 10 099 people are being served by the new sewerage system.
In 1996, EPD inspectors made 24 612 inspections of effluent-producing premises. They took more than 6 344 effluent samples and conducted 26 313 laboratory tests. About 1890 written warnings were issued and 337 prosecutions against the non- complying dischargers were completed.
These control measures have achieved a reduction of 4 920 kilograms of organic pollution per day and the problem of waste from industrial, commercial and institutional premises being discharged into storm water drains has also been alleviated. A total of 27 484 cubic metres per day of polluted effluent has been diverted to the foul sewerage system, which is equivalent to the pollution load from more than 88 559 people.
Hong Kong generates more than two million tonnes of sewage and industrial waste water daily, of which about 20 per cent receives proper treatment, 10 per cent receives partial treatment and the rest goes untreated. Over 90 per cent of private sewage treatment plants now operate satisfactorily and the water quality of many popular bathing beaches has improved in areas such as Hong Kong Island South and Sai Kung. Further improvement in water quality can be expected after upgrading and improvement works are commissioned.
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The Waste Disposal Ordinance complements the Water Pollution Control Ordinance in controlling industrial pollution. It provides the statutory framework for managing all solid and semi-solid waste in Hong Kong.
The Waste Disposal (Chemical Waste) (General) Regulation controls all chemical waste. Chemical waste producers must register with the EPD. They must pack, label and temporarily store their chemical waste properly before its delivery to licensed facilities for treatment and disposal. Only facilities capable of treating, recycling or disposing of chemical waste in an environmentally acceptable manner can obtain a licence. Licensing control also applies to the collection and transportation of chemical waste. The licence conditions require a sound operation employing fully- trained and skilled staff, and proper equipment and vehicles. The Chemical Waste Treatment Centre on Tsing Yi Island run by a government contractor is the main licensed disposal facility and collector for chemical waste. Its operator provides vehicles for the collection of waste from the waste producers.
Many factories and commercial activities produce air-borne emissions. The EPD operates a range of controls under the Air Pollution Control Ordinance and its subsidiary regulations, including specific controls on furnaces and chimneys, dark smoke emissions, fuel composition and specified processes. A regulation to ban the open burning of waste materials came into operation in February 1996 and a regulation to control dust emissions from construction works will be enacted early in 1997.
Nuisance and other environmental problems caused by air pollution arouse great public concern, especially when factories are near homes. In connection with such problems, 140 legal notices were issued and 3 200 complaints were investigated.
Certain industrial facilities and processes liable to cause significant air pollution are targeted for control. Exemptions from licensing control granted to owners of some existing specified process premises are being removed in phases up to 1998. In 1996, about 67 per cent of the specified process premises have been brought under licensing control.
Noise from industrial or commercial activities is controlled by means of Noise Abatement Notices (NANs). The department may serve NANs to require the owners of premises emitting excessive noise to reduce it within a given period. In 1996, around 2 300 complaints were investigated and some 200 NANs served, which led to about 100 convictions.
Floating Refuse in the Harbour
The Marine Department collects floating refuse through a combined fleet of government and contract vessels. Enforcement actions have been stepped up also through collaboration between the Agriculture and Fisheries, Urban Services, Regional Services and Marine Departments. Since July 1996, Fisheries Officers of the Agriculture and Fisheries Department have been empowered to issue citations against marine littering in Fish Culture Zones.
More refuse collection points have been set up in frequently used areas and publicity and educational activities increased. In February 1996, the Marine Department was allocated $50.4 million to modernise its refuse collection and scavenging fleet in phases over three years. Six new specialised vessels will be acquired and an extra 29 contract vessels hired to strengthen the refuse collection service.
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Transport
All petrol cars must be fitted with catalytic converters to control emissions. The market share of unleaded petrol reached 80 per cent in 1996. Diesel vehicles must meet Euro I and Euro phase I standards and only low (0.2 per cent) sulphur content is permitted in motor diesel fuel.
A scheme for reporting smoky vehicles has been running since 1988. All vehicles reported must be examined at a designated testing centre to confirm that the vehicle owners have rectified the smoke defects. The 19 centres conducted approximately 28 000 tests in 1996.
Diesel vehicles are major contributors to territory-wide vehicle emission problems. Government control strategies include up-to-date emission standards, tightened inspection requirements, and higher penalties on smoky vehicles.
This will contribute to much-needed reductions in health-threatening levels of air pollutants, especially in urban areas, and eliminate many smoky vehicles on the roads. However, if health-related air quality objectives are to be met, then transport will need to change to cleaner fuels than diesel.
The intensive use of roads to cater for the rapid growth in the economy has made road traffic noise one of the most pervasive forms of pollution in the territory. It is estimated that close to a million people are exposed to a noise level of road traffic higher than 70 dB(A) L10(1 hr), which is the minimum acceptable standard specified in the Hong Kong Planning Standards and Guidelines.
Pre-emptive planning remains the most effective way to tackle road traffic noise problems. Through the EIA process, the potential noise impact of new road projects is examined at the early stage of planning and counter-measures planned. As a last resort, building insulation may be undertaken to redress the impact on the affected premises. This requires improving the insulation quality of the windows and providing air-conditioning.
The newly enacted legislation for the control of noise emission from vehicles and motor cycles, the Quiet Road Surface Programme and the Noise Abatement in Schools Programme are the major ancillary measures that will help alleviate traffic noise problems. Up to 1996, about 9.7 kilometres of noisy roads were resurfaced with a special porous, low-noise road surface bringing relief to some 13 000 residents. In addition, some 8 100 classrooms were acoustically treated and about 384 000 students benefited.
To minimise noise from railway operations, the Kowloon-Canton Railway Corporation (KCRC) completed three noise-mitigation projects in its 10-year noise- reduction programme at Tai Wo station, Hin Keng Estate and Tai Po Market, bringing significant relief to some 32 000 residents previously adversely affected by rail noise. The programme has been revised and the total number of sites to be provided with noise-screening structures increased to 27. The Mass Transit Railway Corporation (MTRC) has started building a noise cover to protect 2 300 residents at Heng Fa Chuen.
Aircraft noise continues to be a major problem for those living under the Kai Tak Airport flight path. Increasing air traffic demand has added to the problem. A comprehensive package of mitigation measures was implemented - including an absolute night-time curfew, tight restrictions on late evening arrivals over populated
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Kowloon, and insistence on the use of quieter aircraft. This noise problem will be satisfactorily resolved when the airport is relocated.
Construction and Demolition
Operation of powered mechanical equipment for general construction work between 7 p.m. and 7 a.m., and on public holidays, is controlled through a Construction Noise Permit system. The permits restrict the use of equipment in accordance with stringent noise criteria. From November 1996, the control became more stringent in populated areas for certain particularly noisy equipment. In addition, noisy manual activities also came under control in built-up areas. Percussive piling work requires a permit even during the daytime and is prohibited during the restricted hours. Noisy piling machines may be operated up to only three hours a day in urban areas but quieter ones can work up to 12 hours. In 1996, some 3 200 permits were issued. There were about 120 convictions for work without permits or violating permit conditions.
Noise emission from hand-held percussive breakers and air compressors for construction activities is controlled. Only those complying with stringent noise emission standards can obtain a 'green' Noise Emission Label and allowed to be used. In 1996, about 1 700 labels were issued and there were 13 prosecutions for operating these types of equipment without a label.
Control of asbestos is a concern in demolition of buildings. The Air Pollution Control Ordinance controls environmental asbestos by requiring engagement of registered asbestos consultants, contractors, supervisors and laboratories in asbestos- related activities, and submission of asbestos investigation reports and asbestos- abatement plans to the EPD before asbestos removal works start. Also, the import and sale of both amosite and crocidolite asbestos were banned from May 1996.
During 1996, EPD made 480 inspections, mainly of building demolition and renovation sites, to ensure materials containing asbestos were handled and disposed of properly in accordance with relevant guidelines and codes of practice. Its asbestos laboratory analysed 220 bulk samples and 105 air samples.
The large number of port- and airport-related projects has generated a vast quantity of dredged marine spoil that is unsuitable for reclamation. The dredged marine spoil is dumped at sea at specified spoil grounds. These marine dumping activities are subject to permit control by the Director of Environmental Protection under the Dumping at Sea Ordinance. The department does not permit marine dumping of surplus excavated material and other construction wastes unless there is no land-based disposal option and the marine dumping of the waste has no undue adverse impact.
Because of the serious impact of illegal dumping on the marine ecology, the department maintains strict control. A vessel must be equipped with an automatic self-monitoring device before it can be listed in the marine dumping permit. The device tracks all marine dumping operations by keeping a record of the position and draft of the vessel, so that the authorities can trace any illegal dumping in a cost- effective manner. The EPD's inspectors operate frequent patrols, offenders are prosecuted, and repeat offenders face having their permits revoked or applications for new ones refused.
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Livestock Waste
Indiscriminate disposal of waste from the livestock industry was one of the main causes of pollution in streams in the New Territories, and constituted a health hazard. Under the Waste Disposal Ordinance, livestock-keeping has been banned in urban and environmentally-sensitive areas of Hong Kong. Where they are allowed, however, all livestock farms must be equipped with proper waste treatment systems. Livestock farmers wishing to continue in business are eligible for a grant and a loan to help pay for pollution-control facilities. Since the start of the scheme in 1987, about $33 million has been paid out in capital grants. Farmers ceasing business are eligible for an allowance and about $837 million has been paid.
During the year, the livestock waste control scheme prevented pollution equivalent to the raw sewage from 100 000 people being discharged into the environment. This brought the total reduction in livestock waste pollution to over 75 per cent since the inception of the control scheme.
Ozone - A Global Responsibility
The Ozone Layer Protection Ordinance controls ozone depleting substances and fulfils Hong Kong's international obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer. This law prohibits local manufacture of chlorofluorocarbons (CFCs) and halogenated hydrocarbons (halons), methyl chloroform, carbon tetrachloride, methyl bromide, 34 hydrobromofluorocarbons (HBFCs) and 34 hydrochlorofluorocarbons (HCFCs), and its licensing and quota controls restrict the import and export of these substances.
Import of CFCs, carbon tetrachloride, methyl chloroform, and HBFCs for local consumption were prohibited from January 1996. A quota system for controlling local HCFCs consumption was also implemented. In 1996, there were 19 prosecutions with fines totalling $417,500.
Neighbourhood Noise
Noise originating from domestic premises and public places is called neighbourhood noise and is handled by the police in response to complaints. In 1996, the police dealt with some 3 300 complaints and 25 offenders were convicted.
Provision of Facilities and Services
Hong Kong produces two million tonnes of sewage and more than 8 000 tonnes of municipal solid wastes every day. To deal with the sewage, the government will upgrade the local sewerage networks through the implementation of Sewerage Master Plans. Under the Strategic Sewage Disposal Scheme (SSDS), a new system of collection shafts and tunnels is being built to transfer the sewage from the main urban areas to a central treatment plant on Stonecutters Island. Eventually, treated effluent will be disposed of through an oceanic outfall.
Domestic, commercial and industrial wastes are collectively referred to as municipal solid waste. It is forecast that, by 2006, some 13 000 tonnes of municipal solid waste will require collection and disposal each day. The government is tackling the solid waste problem through replacing the old facilities with high-standard new facilities together with improved waste management services. Waste reduction measures are
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being formulated to minimise waste generation and reduce the amount of waste that requires land filling.
Sewerage Master Plans
The Sewerage Master Plan studies identified works estimated to cost a total of $9.5 billion required to bring the sewers up to standard in a phased improvement programme.
Sewerage work in southern Hong Kong island is completed, with a treatment works in a rock cavern at Stanley, the first such works in Asia. Improvements at Shek O are well under way, as are works in several parts of Kowloon. Significant progress is being made in providing sewerage to the villages around Tolo Harbour in order to complement the improvements already made to the water quality by such schemes as the diversion of treated effluent from the Sha Tin and Tai Po sewage treatment works to Victoria Harbour and livestock waste controls.
Treatment and disposal for the main urban area
The construction of the chemically enhanced primary treatment works at Stonecutters Island continued and a pilot plant was built and run to determine the most suitable chemicals and their optimum dosage rates and to ascertain whether disinfection would be technically feasible for the effluent from that works.
A two-year comprehensive EIA started in May 1996 with work undertaken by a joint Hong Kong-People's Republic of China consortium. This will assess the options for further stages of the Strategic Sewage Disposal Scheme.
Sewage charges
Sewage charges have been introduced with a basic charge for all users of water who discharge to public sewers, plus a Trade Effluent Surcharge (TES) payable by trades and industries whose effluent strength exceeds that of domestic sewage. A review has now started to allow refinements to the Trade Effluent Surcharge scheme and this will report in early 1997. Only operation and maintenance costs are paid out of charges and government continues to provide funds for capital costs. Household sewage charges are therefore modest at an average of about HK$40 per person per year.
Landfills
Most municipal solid waste is currently disposed of at three state-of-the-art, large landfills in the New Territories which will provide adequate capacity for the disposal of solid waste up to the year 2012. These landfills are being developed by specialist waste management contractors to high environmental standards.
Rapid development in the territory over the past decade has contributed to the dramatic increase in the amount of construction and demolition waste requiring disposal. Some 30 000 tonnes of such waste were generated every day during 1996. Since much of the construction waste delivered to landfills could be reused, contractors are encouraged to segregate and sort their waste at source before disposal. A sorting requirement has been specified in all demolition projects of the Housing Department. About 7 500 tonnes out of the 30 000 tonnes were disposed of at landfills every day. The rest was delivered to public dumps for land reclamation.
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Hong Kong's 13 old landfills are polluting the environment by the decomposition of refuse, and the production of large quantities of a highly polluting liquid called leachate and gases (mainly methane and carbon dioxide) which may become explosive. These landfills will be restored in phases and some gas control facilities are already operational at the Sai Tso Wan and Shuen Wan Landfills. Plans for the restoration works at these landfills are well advanced. After full restoration, the sites may be used for community activity purposes.
The government plans to apply the 'polluter pays' principle to recover the cost of providing landfills by charging for the disposal of all commercial, industrial and construction waste.
Refuse Transfer Stations
A network of refuse transfer stations is being developed. Waste collected in urban centres will be delivered to these stations for compaction into sealed containers and then sent to the three strategic landfills. Transfer stations at Kowloon Bay, Island East and Sha Tin currently handle about 4 000 tonnes of refuse every day.
Work has begun on an underground transfer station at the western end of Hong Kong Island and it will be operational in 1997. This Island West Station, together with the Island East Station, will be capable of handling all the waste generated on Hong Kong Island. A station is under construction in West Kowloon and tenders have been awarded for stations in North Lantau and the Outlying Islands. A tender will be invited shortly for the station to serve North-West New Territories.
Chemical and Special Wastes
Each day some 180 tonnes of chemical waste generated by some 8 800 waste producers are collected and treated at the Chemical Waste Treatment Centre. The running costs are partially recovered through a user direct-charging scheme.
Waste producers are encouraged to adopt clean technologies and to minimise their wastes so as to reduce treatment cost. All chemical waste producers must properly store and dispose of their chemical wastes. A trip ticket system involving the waste producers, licensed collectors and licensed disposal points, tracks the movement of chemical waste from the point of origin to the point of final disposal. Most of the chemical waste is treated at the centre but some solid chemical waste, such as asbestos, is sent to landfills.
To help farmers dispose of their livestock waste properly, a door-to-door livestock waste-collection service commenced in July 1996 to replace the collection points system. About 5 800 tonnes of livestock waste were collected during the year and sent to Sha Ling Composting Plant for composting. A storage facility is being planned for low-level radioactive waste.
Monitoring and Investigations
The assessment of progress towards policy goals is one of the key activities of the EPD. Its routine monitoring and special investigations form the basis for all the strategic planning, provision of facilities and statutory controls aimed at improving the environment. The EPD has more than 100 sampling stations in the open sea, enclosed bays and typhoon shelters plus another 80-odd stations for inland waters. It also keeps 42 gazetted bathing beaches under surveillance.
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This monitoring goes back to 1972 and provides a comprehensive record of the chemical, physical and microbiological quality of Hong Kong's waters. All the data are published regularly and can be made available to scientists and engineers on computer disks or printed copies. Members of the public are usually more interested in the summary reports of bathing water quality, which are issued to the media and published in newspapers every two weeks during the summer.
Mathematical models are frequently used to assess the water quality impact of major development activities in Hong Kong. With increasing collaboration between. Hong Kong and local authorities in mainland China, mathematical modelling is also becoming a useful tool for evaluation of cross-border development projects. During 1996 good progress was made in developing a water quality model for Deep Bay, a semi-enclosed embayment whose catchment lies partly in Hong Kong and partly in mainland China. The model will be used to determine how much pollution the bay can absorb. Once this is known the two sides will work together to develop a management plan to ensure this limit is not exceeded.
The EPD operates nine air quality monitoring stations. They are equipped with continuous ambient monitoring instruments for measuring sulphur dioxide, nitrogen. oxides, photochemical oxidants and carbon monoxide. Respirable and total suspended particulates (dust) and lead concentrations are also measured. There are plans to establish three more air quality monitoring stations including two at roadside. Toxic air pollutants will also be monitored at two locations.
Results of measurements are reported and published each month. These stations broadly represent air quality in industrial areas, in combined commercial-residential districts, and near road traffic in urban areas.
The Air Pollution Index and Forecast System provides daily air quality information to the public. An opinion poll conducted by the University of Hong Kong in 1996 showed that the majority of people consider the system is useful.
A survey on disposal of solid waste is conducted every year to collect up-to-date information for planning disposal facilities. About 16 100 tonnes of solid wastes were disposed of at landfills and incinerators each day in 1996. Of this, 6 400 tonnes were domestic waste, 1 800 tonnes were commercial and industrial waste and 7 500 tonnes come from construction activities.
Local waste-recovery activities continued to play an important role in waste. management, resulting in the export of substantial quantities of recovered waste materials for recycling overseas. In all, over 1.1 million tonnes of waste materials, including waste paper, metals and plastic were exported in 1996, and generated export earnings of over $2.4 billion. More than 500 000 tonnes of waste paper, metals, plastic scrap and glass were reprocessed locally.
The government encourages waste avoidance and minimisation. An integrated Waste Reduction Plan covering waste avoidance, waste minimisation, material recovery and development of bulk waste-reduction facilities is being formulated for public consultation in early 1997.
Government Laboratory
Fundamental to the mission of environmental protection, in 1996 the Government Laboratory conducted some 220 000 interdisciplinary analyses on samples of Hong Kong's atmosphere, water, wastes and aquatic species. The acquired data are
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essential to improving our understanding and forecasting capability of the environment, thus they need to be impeccably accurate. Faced with the challenge, the laboratory has placed strong emphasis on quality assurance. In 1996, the laboratory became the first in Hong Kong certified under ISO 9001 to provide a full spectrum of accredited tests encompassing environmental analysis.
Apart from analysing for pollution monitoring, the laboratory also serves as a referee analyst under different ordinances and regulations related to environmental protection. In 1996, over 800 samples were examined for litigation purpose in strict compliance with internationally accepted methodology.
Pollution knows no boundary, so close liaison must be maintained with peer organisations the world over. In this regard, the laboratory has established working relationships with renowned testing institutes such as the Environment Technology Centre of Canada and the China National Environmental Monitoring Centre in Beijing. It also collaborated with the Shenzhen Environmental Monitoring Station through the EPD in the Joint Deep Bay monitoring programme to address cross- border pollution issues.
Climate
Hong Kong's climate is sub-tropical, tending towards the temperate for nearly half the year. During November and December, there are pleasant breezes, plenty of sunshine and comfortable temperatures. Many people regard these as the best months of the year. January and February are cloudier, with occasional cold fronts followed by dry northerly winds. Temperatures can drop below 10 degrees Celsius in urban areas but sub-zero temperatures and frost usually occur only on high ground and in the New Territories.
March and April can be very pleasant with occasional spells of high humidity. Fog and drizzle can sometimes disrupt air traffic and ferry services because of reduced visibility.
May to August are hot and humid with occasional showers and thunderstorms, particularly during the mornings. Afternoon temperatures often exceed 31 degrees, but at night temperatures generally remain around 26 degrees.
Hong Kong is most likely to be affected by typhoons in September, although tropical cyclones of varying strength are not unusual at any time between May and November. On average, about 31 tropical cyclones form over the western North Pacific and the China Seas every year, and about half of them reach typhoon strength with maximum winds of 118 kilometres per hour or more.
When a tropical cyclone is about 700 to 1 000 kilometres south-east of Hong Kong, the weather is usually fine and exceptionally hot, but isolated thunderstorms sometimes occur in the evenings. If the cyclone's centre comes closer to the territory, winds will increase and rain can become heavy and widespread. The heavy rain may last for a few days, and subsequent landslips and flooding sometimes cause considerably more damage than the winds.
The mean annual rainfall ranges from around 1 300 millimetres at Waglan Island to more than 3 000 millimetres around Tai Mo Shan. About 80 per cent of the rain falls between May and September. August is the wettest month, when it rains about four days out of seven with a monthly average at the Royal Observatory of 391.4
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millimetres. The driest month is January with 23.4 millimetres and rainfall on only about six days.
Severe weather phenomena that can affect Hong Kong include tropical cyclones, strong winter and summer monsoon winds, monsoon troughs and thunderstorms with associated squalls that are most frequent from April to September. Waterspouts and hailstorms occur infrequently, while snow and tornadoes are rare.
Climatological data are given in Appendix 49.
The Year's Weather
It was a warm year. The annual mean temperature of 23.3 degrees was the sixth- highest on record. It was also dry with a mean relatively humidity of 76 per cent, which ranked the fourth-lowest. The year's total rainfall was near normal and amounted to 2 249.1 millimetres, only two per cent above the normal of 2214.3 millimetres. Seven tropical cyclones necessitated the hoisting of local Tropical Cyclone Warning Signals, as compared with the annual average figure of about six, and the No. 8 Gale or Storm Signal was hoisted once.
January 1996 was warmer and cloudier than normal. The mean temperature of 17.8 degrees was the fifth-highest for January. The month was also drier with a total rainfall of only 1.3 millimetres which was 22.1 millimetres below normal.
Cold winter monsoons dominated most of February. Daily minimum temperatures of below 10 degrees were recorded each day from February 18 to 24, the sixth-longest cold spell recorded in February. The monthly total rainfall amounted to only 27.2 millimetres, 43 per cent below normal.
March was slightly warmer than normal. The monthly total rainfall amounted to 83.1 millimetres which was 16.2 millimetres above normal. Nevertheless, the accumulated rainfall since January 1 was still 19 per cent below average.
It was cooler than normal in April and the minimum temperature of 10.9 degrees on April 3 was the third-lowest recorded for the month. Three episodes of heavy rain contributed to most of the month's rainfall of 228.7 millimetres, 67.2 millimetres above normal.
May was slightly cooler with near normal rainfall.
June was the hottest on record. The mean temperature of 28.8 degrees equalled the previous record set in 1977 and 1938. The monthly mean pressure of 1008.8 hectopascals was the third-highest for June due to the dominance of the subtropical ridge over South China. Both the monthly total rainfall and the accumulated rainfall for the year were seven per cent above normal for the same periods.
July was hot. The mean temperature of 29.2 degrees and the absolute maximum of 34.3 degrees ranked the sixth- and ninth-highest respectively on record for July. Occasional showers and thunderstorms affected the territory but the monthly rainfall of 230.3 millimetres was still 29 per cent below normal. In the second half of the month, tropical cyclones Frankie and Gloria necessitated the hoisting of the Stand By Signal No. 1.
August was cloudier than normal and there were nine days with thunderstorms. The weather was unstable from August 14 to 18 with 206.1 millimetres of rainfall. Torrential rain on August 15 caused flooding in many places. The Stand By Signal
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No. 1 was hoisted on two occasions during the approach of tropical cyclones Lisa and Niki.
The total rainfall of 604.0 millimetres recorded in September 1996 was the sixth- highest for the month and was more than twice the normal figure of 299.7 millimetres. Typhoon Sally rapidly traversed the northern part of the South China Sea, bringing thundery and frequent squally showers to Hong Kong and the No. 8 Gale or Storm Signal was hoisted early on September 9. Gales were recorded at Waglan and Cheung Chau with the maximum hourly winds exceeding 80 kilometres an hour.
October was warmer and drier than normal. The mean temperature of 26.0 degrees was the sixth-highest for October. With only 44.8 millimetres recorded, the monthly rainfall was 69 per cent below normal.
With less frequent continental cold air affecting Hong Kong, November 1996 was warmer than normal. The mean minimum temperature of 21.1 degrees was the highest for November. The month was also rather dry, with 3.5 millimetres of rainfall recorded against a normal 35.1 millimetres.
December was generally fine and dry. Only a trace of rainfall was recorded and Fire Danger Warnings were in effect on 27 days in the month.
Topography and Geology
Hong Kong's natural terrain is dominated by mountains and hills with steep slopes, many of which descend sharply into the sea. The seabed is relatively flat. The highest point in Hong Kong is Tai Mo Shan in the New Territories at 957 metres. The deepest point is in the Lo Chau Mun (Beaufort Channel) north of Po Toi Island, in which a sounding of 66 metres is shown on the Admiralty chart.
The mountains consist primarily of volcanic rocks, with some lower hills formed of granite. Low-lying areas tend to be formed of granite or sedimentary rocks. In places, hill-slope debris forms a mantle over the bedrock and alluvium fills some of the valleys overlying bedrock. Much of the seabed is covered by marine mud with scattered sand banks.
The territory lies on the southern edge of the ancient Sinian land mass. The oldest exposed rocks are Devonian fluvial sediments that were deposited 300 million years. ago. The region was subsequently inundated by the sea and shallow marine sediments laid down, represented by the Carboniferous marble of Yuen Long and Ma On Shan and the sandy and muddy sediments of the Permian rocks of Tolo Harbour.
During the Jurassic and Cretaceous periods, 170 to 135 million years ago, while dinosaurs roamed the land to the north, Hong Kong was the scene of violent volcanic activity, with lavas and volcanic ash being deposited over the territory. The eruptions were associated with the development of a number of giant craters (calderas). At deeper levels, the lava and ash pile was intruded by molten magma, which slowly crystallised to form granite.
During the Tertiary period, 60 million years ago, the area became less active. Rocks now seen on the island of Ping Chau represent sediments laid down in temporary lake on the edge of a desert extending to the north.
During the Quaternary period, spanning the last 2 million years, major glaciations in polar regions affected global sea level, which fell to 120 metres below present level,
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leaving the site of present-day Hong Kong as much as 130 kilometres from the coast. At that time the flat areas between what are now the islands of Hong Kong were part of the Pearl River flood plain. In interglacial periods, such as at the present time, global sea level rose to its present level and higher, and marine sediments were deposited.
Information about the terrain is contained in 55 maps and 12 reports of the Geotechnical Area Studies Programme. A description of the onshore and offshore geology can be found in a series of 15 geological maps published at a scale of 1: 20 000 and six memoirs produced by the Hong Kong Geological Survey, a part of the Geotechnical Engineering Office.
Hydrography and Oceanography
Hong Kong's waters are characterised by the interaction of oceanic and fresh water masses that vary in relative effect throughout the year. Fresh water discharge from the Pearl River is the single most important factor influencing Hong Kong waters. Three different ocean currents affect the territory.
During the summer, a north-easterly oceanic flow brings the warm, high-salinity water of the Hainan Current into Hong Kong waters. This interacts with fresh water from the Pearl River and divides the territory into three distinct sections. In the west, where the fresh water influence is greatest, the environment is estuarine and the water brackish. In the east, the water is dominantly oceanic with relatively minor dilution from direct monsoonal rainfall and runoff from small streams. The limits of the central transitional zone vary depending upon the relative influence of Pearl River flood waters and marine currents.
During the winter, the Kuroshio oceanic current brings warm water of high salinity from the Pacific through the Luzon Strait. The fresh water of the Pearl River has a lesser influence than in summer and water salinity is more uniform across the territory. Besides the Kuroshio current, the coastal Taiwan current brings cold water down the South China coast, which affects inland waters, making the surface water cold during the winter.
The normal tidal range in Hong Kong waters is between one and two metres, depending on the relative influence of the moon and sun. The tidal pattern is complex due to the relative effects of the diurnal and semi-diurnal components. The basic pattern during flood tides is for oceanic water to flow north into Mirs Bay, west through Victoria Harbour and north through Kap Shui Mun and the Ma Wan Channel. Maximum tidal currents range from 0.5 to 1.5 knots. This flow is reversed during the ebb tide, though currents in some parts may be stronger due to the influence of the Pearl River.
Flora
Hong Kong is near the northern limit of the distribution of tropical Asian flora and has an estimated 2 800 species of vascular plants, both native and introduced. Various conservation measures have transformed formerly bare hillsides and slopes into areas with trees of local and introduced species. Besides greening and beautifying the countryside, woodlands are important habitats for wildlife and are essential in the management of water catchments and in providing recreational opportunities for the public.
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Remnants of the original forest cover, either scrub forest or well-developed woodlands, are still found in steep ravines. They have survived the destructive influences of man through their location in precipitous topography and the moist winter micro-climate.
Terrestrial Fauna
Hong Kong's physical and climatic environment provides woody and grassy habitats for a wide variety of animal and plant life. Under the pressures of urbanisation, larger animal species are rarely seen, but reptiles, amphibians, birds and insects are still
common.
The Mai Po Marshes form one of the most important wildlife conservation sites in Hong Kong. Together with the Inner Deep Bay area, the Mai Po Marshes were listed as a 'Wetland of International Importance Especially as Waterfowl Habitat' under the Ramsar Convention in September 1995. Some 835 hectares of mudflats, shrimp ponds and dwarf mangroves provide a rich habitat, particularly for migratory and resident birds as well as ducks and waders. Some 300 species of birds have been observed in this area, and at least 110 of them are rarely seen elsewhere in the territory. Yim Tso Ha, also a restricted area, is the largest egretry in Hong Kong.
The traditional fung shui woods near old villages and temples have provided an important habitat for many birds. Sightings in wooded areas include warblers, flycatchers, robins, bulbuls and tits.
Areas around the Kowloon reservoirs are inhabited by monkeys descended from animals which had been released or had escaped from captivity. There are breeding groups of long-tailed macaques and rhesus monkeys and their hybrids. Smaller mammals are common, with the woodland shrew, house shrew and bats prevalent in some rural areas. The Chinese porcupine, with its strikingly-coloured black and white quills, is still present in parts of the New Territories and Hong Kong Island.
Occasional sightings are still reported of less-common species such as the leopard cat, civet cat, ferret badger, pangolin and barking deer. Wild boar occasionally damage farm crops in some remote areas. Snakes, lizards and frogs are plentiful in Hong Kong. There are also various species of terrapins and turtles.
The territory has more than 200 recorded species and forms of butterflies. The birdwing butterfly (Troides helena) is endangered and protected by the Wild Animals Protection Ordinance and the Animals and Plants (Protection of Endangered Species) Ordinance. Among the many local moths are the giant silkworm moths, including the cythia, fawn, atlas and moon. The atlas has an average wing span of 23 centimetres and the moon, 18 centimetres. Dragonflies and damselflies are also common, as are wasps and metallic-coloured beetles.
Aquatic Fauna
Hong Kong is in the Oriental Region and despite cool winters has a fauna dominated by tropical species. It has a very high diversity of fish, crustacea and molluscs, of which at least 150 species are of commercial importance. Transient species such as the yellow croaker and melon seed, typically found off northern China and Japan, bolster the resident marine fauna when the monsoonal flow brings in cooler waters.
Local waters range broadly from the predominantly brackish in the west to the less turbid and more oceanic in the east. Seasonal rainfall affects the outflow of the Pearl
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River, the largest river in southern China, causing brackish waters to extend to areas which for most of the year experience clear oceanic waters. Many marine fish breed in Hong Kong waters. Typical of eastern waters is the red pargo, one of several sea bream whose fry are abundant along the shores of Mirs Bay and are captured in the early spring months to provide a mainstay for mariculture.
The natural history of many common shore animals, particularly the more sedentary molluscs and crustacea of rocky shores and mangroves has been studied, but broad gaps remain in the knowledge of local marine fauna. An expansion of marine recreation, including boating, sport fishing and scuba diving, coupled with an increased concern for the visible effects of pollution and dredging and dumping in local waters has focused attention on marine wildlife in recent years. The less- common commercial fish and many corals that reach the northernmost extent of their range in Hong Kong remain poorly documented, not to mention the myriad less- familiar worms, urchins, starfish, sea pens and the more microscopic plankton forms. The habitats of Hong Kong's coastal areas have experienced dramatic changes in the last decade, paralleling the highly visible developments above high water. Inevitably, detrimental changes in the fauna have occurred, but those which have been identified are being countered with steps towards the protection of sensitive aquatic communities through the extension of the country park system to the marine environment.
Shark sightings have been recorded in local waters and shark attacks near Clear Water Bay have caused several deaths since 1991. To protect swimmers, 21 shark exclusion nets have been erected at popular bathing beaches. These are deployed in such a way as to minimise any possibility of marine life being trapped and serve only to keep bathers and sharks apart.
Four species of whales and 11 species of dolphins have been recorded in Hong Kong waters. The Finless Porpoise and the Indo-Pacific Hump-backed dolphin (commonly known as the Chinese White Dolphin) are the most common in terms of observation. A three-year research study was started in December 1993 to gather baseline information about the Indo-Pacific Hump-backed dolphins. To better understand the species, a further in-depth and systematic two-year study on the dolphins was commissioned in April 1996 to help develop an effective, long-term conservation strategy for the species.
Legislation and Nature Conservation
The Director of Agriculture and Fisheries is the Country and Marine Parks Authority responsible for the conservation of the terrestrial and marine ecological resources. He is also responsible for enforcement of legislation on conservation issues.
The Forests and Countryside Ordinance provides for the general protection of vegetation, and gives special protection to certain plants, including native camellias, magnolias, orchids, azaleas and the Chinese New Year Flower.
The Wild Animals Protection Ordinance prohibits the hunting of wild animals or the possession, sale or export of protected wild animals from Hong Kong. It also restricts unauthorised entry to important wildlife habitats, the Mai Po Marshes and the Yim Tso Ha Egretry.
The Country Parks Ordinance provides for the designation, control and management of the most important areas of countryside as country parks and special
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▲ Densely populated as it is, Hong Kong retains wide areas of tranquil charm, and more than 40 per cent of the territory is declared country park. ABOVE: A marine reserve is being created at Hoi Ha Wan, near Sai Kung. LEFT: A quiet village in the New Territories and classic calm at Mai Po Marshes Nature Reserve, a declared site under the international Ramsar Convention for the Conservation of Wetland which covers 380 hectares.
| PREVIOUS PAGE: Golfers enjoy the ancient game's challenge on one of the world's newest courses, Kai Sai Chau. The former British Army firing range was transformed into Hong Kong's first public course with funding from the Hong Kong Jockey Club and designs from Gary Player.
· School children are fascinated as Dr Gary Ades (centre) points out features on an owl while a helper holds a hawk during a visit to the Raptor Sanctuary at Kadoorie Farm. The sanctuary was established to help birds of prey recover from injury so they can return to the wild.
THE ENVIRONMENT
areas, and enables them to be developed for outdoor recreational and nature conservation purposes. Conservation education is also provided through six visitor centres, nature trails and tree walks, the Lions Nature Education Centre, and guided educational walks.
The Marine Parks Ordinance provides the necessary statutory powers for the designation and management of marine parks and marine reserves in Hong Kong. It also provides for the making of regulations for the good management of marine parks and marine reserves.
Besides general conservation of the countryside, Hong Kong has adopted the concept of identifying and conserving sites of special scientific interest, such as a site where a rare species of tree or butterfly can be found. In all, 58 sites have been identified.
Meteorological Services
Royal Observatory
The Royal Observatory was established in 1883, mainly to provide scientific information for the safe navigation of ships. Since then, it has evolved in line with community needs providing services and studies on weather forecasting, hydrometeorology, climatology, physical oceanography, aviation and marine meteorology, and radiation monitoring and assessment. The Observatory also operates the official time standard for Hong Kong, provides basic astronomical information and maintains a seismological monitoring network.
Weather forecasts and warnings of hazardous weather are the responsibility of the Central Forecasting Office at the Observatory's headquarters. Marine weather forecasts cover the South China Sea and East China Sea. Forecasts and advice are also provided for the civil aviation, business and industrial communities, port and container terminal operators and the oil-prospecting industry.
Whenever Hong Kong is threatened by tropical cyclones, frequent warnings with advice on the necessary precautions to take are widely disseminated. A colour-coded rainstorm warning system is activated to warn people of serious road flooding and traffic disruption. The Observatory also warns of thunderstorms, flooding, landslips, fire danger, strong monsoon and frost.
Weather programmes for the public are presented regularly on television by the Observatory's meteorologists. During adverse weather, live interviews and briefings are given over the radio and television.
The Observatory operates a Dial-a-Weather automatic telephone answering system providing hourly updates of weather forecasts, temperature readings, warnings or tropical cyclone information. About 63 000 calls were received on an average day in 1996, totalling around 23 million calls for the year. A home page on the Internet was set up in March 1996 to provide public access to weather forecasts and information on climate, tides, earthquakes and other areas. Weather information is also provided to commercial communications and paging services which make it available on various electronic media. The Observatory produces a variety of meteorological and climatological publications, most of which are obtainable from the department free of charge.
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Weather Monitoring and Forecasting
To provide weather forecasts and warnings of hazardous weather, the Royal Observatory maintains a close meteorological watch around the clock. The Observatory exchanges weather observations with the rest of the world through the Global Telecommunications System operated under the auspices of the World Meteorological Organisation. Through its telecommunication lines with meteorological centres in Beijing, Tokyo and Bangkok, about 20 000 weather reports are received each day.
Hourly cloud pictures received from the Geostationary Meteorological Satellite of the Japan Meteorological Agency give general indications of tropical cyclones, severe storms and frontal systems approaching the South China coast. The Observatory's weather radar system at Tate's Cairn detects rain within about 500 km of Hong Kong and gives estimates of rain intensity and movement. Information on thunderstorms as detected by a lightning location system is also available to forecasters.
Weather observers and automatic weather stations at about 40 locations in Hong Kong provide comprehensive and real-time coverage of regional weather variations, while observations from Voluntary Observing Ships provide valuable information on weather at sea.
Rainfall information is important because of the territory's vulnerability to floods and susceptibility to landslips during heavy rain. A dense network of about 70 automatic reporting rain-gauges provides real-time information on rain distribution and intensity over Hong Kong for the operation of rainstorm, flood and landslip warnings.
The Observatory operates tide gauges for monitoring coastal flooding and raised sea levels caused by tropical cyclones. To probe the atmosphere aloft, radiosondes carried by balloons are launched four times a day at King's Park to relay weather information from the upper air.
The Observatory exchanges weather radar images with the Guangdong Meteorological Bureau and operates three automatic weather stations at Huangmao Zhou and the Tuoning Islands in Chinese waters. More stations will be set up in the Pearl River estuary area to give earlier indication and better timing of the approach of hazardous weather such as fronts, squall lines and tropical cyclones. Using guidance from numerical products from both global and limited area models, forecasters can now issue weather forecasts several days ahead with reasonable confidence.
Aviation Meteorology
The Royal Observatory operates the Airport Meteorological Office (AMO) at the Hong Kong International Airport to provide services for civil aviation. Besides keeping watch and warning of hazardous weather over the Hong Kong Flight Information Region, the AMO provides flight documentation to aircraft departing Hong Kong. This includes weather forecasts for destination aerodromes, prognostic charts of significant weather en route and forecast wind and temperature data appropriate to cruising levels.
The Observatory is setting up meteorological facilities for the new airport at Chek Lap Kok. State-of-the-art equipment being installed includes a terminal Doppler weather radar to detect wind shear due to thunderstorms.
THE ENVIRONMENT
Radiation Measurement and Assessment
The Observatory operates an Environmental Radiation Monitoring Programme to monitor radiation levels in Hong Kong. The programme, begun in 1987, entails the collection and measurement of samples of air, water, soil and food regularly at several sites in the territory. Measurements from 1987 to 1991 were analysed to determine Hong Kong's background radiation levels and the results published in early 1993. Thereafter, bulletins on the prevailing radiation levels have been published annually. A network has also been established for continuous monitoring of the ambient gamma dose rate in the territory and to warn of any deviation from normal levels. Data are disseminated to the media daily and published in a bulletin every month.
In any emergency, the Observatory will intensify radiation monitoring and assess the radiological and meteorological information collected to estimate the transport, dispersion and deposition of any radioactivity over the territory. It will also give the government technical advice on any necessary counter-measures.
Climatological, Oceanographic and Geophysical Services
Climatological information finds applications in activities ranging from recreation through engineering design and environmental impact analysis to litigation. To meet the demand for such information, the Royal Observatory operates a climatological information service on a cost-recovery basis. The data available include land and upper-air observations from Hong Kong and neighbouring countries, marine weather observations from Voluntary Observing Ships, and tidal observations.
The Royal Observatory produces an annual tide table for Hong Kong. It also provides assessments of the probabilities of occurrence of extreme storm surges and waves and its advice on oceanographic matters is often sought by other government departments and the engineering community.
To monitor earthquakes and seismicity, three short-period seismometers are operated at Cheung Chau, High Island and Tsim Bei Tsui. Long-period seismographs at the Observatory's headquarters detect tremors world-wide and information on significant tremors is made public through the media. Strong-motion accelerographs are operated at headquarters and Tate's Cairn. On average, Hong Kong experiences two to three minor earth tremors every year. Seismic data are used by structural engineers in building design, and by local and overseas scientific institutions
The Hong Kong Time Standard is provided by a caesium beam atomic clock. Accuracy within fractions of a microsecond a day is maintained. A six-pip time signal is sent to Radio Television Hong Kong for broadcast at quarter-hour intervals.
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25 POPULATION AND IMMIGRATION
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HONG KONG'S population was an estimated 6 421 300 at the end of 1996 up 2.4 per cent from a year earlier. This was due to 32 800 more births than deaths and a net inflow of 118 500 people. It represented an increase of 15 per cent over the 1986 population of 5 565 700. The annual growth rate over the decade averaged 1.4 per
cent.
The birth rate continued to decline, from 13 per 1 000 in 1986 to 10 per 1 000 in 1996, while the death rate remained at about five per 1 000. Consequently, the rate of natural increase dropped from eight to five per 1 000 over the decade. The proportion of the population aged under 15 years fell from 23 per cent in 1986 to 19 per cent in 1996, while that aged 65 years and over rose from 8 per cent to 10 per cent. The age dependency ratio the ratio of the young and the aged to people of age 15 to 64- dropped from 443 per 1 000 in 1986 to 407 per 1 000 in 1996.
With its land area of only 1 095 square kilometres, Hong Kong is one of the most densely populated places in the world. The overall population density per square kilometre was 5 990 in 1996. Hong Kong Island and Kowloon, which represent the territory's older urban areas, had 26 460 people per square kilometre, while the New Territories, which includes most of the new towns, had only 3 070 people per square kilometre. More statistics appear in Appendix 32.
Immigration Department
Apart from controlling the movement of people into and out of Hong Kong, the Immigration Department provides services to local residents including the issue of travel documents; visas and identity cards; naturalisation; and the registration of births, deaths and marriages. Considerable effort also goes into detecting and prosecuting immigration law offenders, and removing illegal immigrants.
Policies are framed to limit to an acceptable level population growth brought about by immigration, and to control the entry of foreign workers. Immigration procedures for Hong Kong residents, tourists and businessmen are streamlined. Effort is also made to prevent the entry of undesirable persons and the departure of persons wanted for criminal offences.
The department has implemented a long-term information systems strategy through the application of advanced technology. Immigration officers pay regular visits overseas to maintain close liaison with their counterparts abroad.
POPULATION AND IMMIGRATION
Immigration Control
Passenger traffic continued to increase in 1996. A total of 99.8 million passengers travelled to and from Hong Kong, up 8.3 per cent from 92.1 million in 1995. Movements to and from China rose by 8.9 per cent, from 59.7 million in 1995 to 65 million. The number of visitors travelling to Hong Kong also increased, from 10.2 million in 1995 to 11.7 million in 1996, up 14.7 per cent. These included 2.3 million from China and 1.8 million from Taiwan.
Legal Immigration
During 1996, 61 179 Chinese residents came to settle in Hong Kong. Of these, 24 780 were wives, 31 774 were children and 1 649 were husbands of local residents. Of the children who arrived in 1996, 20 228 will have the right of abode in the Hong Kong Special Administration Region (HKSAR) after 1997 under category (3) of the second paragraph of Article 24 of the HKSAR Basic Law.
Illegal Immigration
With its steady economic growth and proximity to China, Hong Kong remains vulnerable to influxes of illegal immigrants from China. The daily average arrest figure for 1996 was 63, a decease of 13.7 per cent compared with 73 in 1995.
Most illegal immigrants came to Hong Kong looking for work and higher wages. Frequent checks were conducted on construction sites, factories and other places of employment. Illegal immigrants found working were prosecuted before repatriation. Their employers were also prosecuted. Most of them were fined, but in serious cases prison sentences were imposed.
British Nationality Selection Scheme
The British Nationality Selection Scheme, which enables up to 50 000 heads of household and their dependants to acquire British citizenship without having to leave Hong Kong, is approaching its final stage. By the end of 1996, 49 842 households comprising 134 094 persons in total had been registered as British citizens. The Selection Scheme is expected to be completed before June 1997.
Emigration
The estimated number of emigrants increased from an average of 20 000 a year in the early 1980s to about 60 000 a year in the early 1990s. It was estimated that about 43 000 and 40 300 people emigrated in 1995 and 1996 respectively. There were signs that emigrants were returning to Hong Kong. It was estimated that at least 12 per cent of persons who had emigrated in the decade before 1994 had returned to Hong Kong.
Personal Documentation
During the year, 795 571 passports were issued, up 30 per cent from 1995. This total included 788 491 British National (Overseas) or BN(O) passports, compared with 598 188 in 1995. The first 10 phases of the world-wide BN(O) phased registration programme for persons born in 1995 and before, have been completed. The programme, which started in July 1993, provides for eligible persons to apply, in phases and by age groups, for BN(O) passports before specific cut-off dates. The
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turn-up rates for most of the 10 completed phases were above 86 per cent. At the end of the year, 3 246 774 persons had been registered as BN(O)s.
Legislative amendments were made in June 1996 to waive the personal attendance of children under 11, the aged, the blind and the infirm to register or apply for a Hong Kong identity card for the purpose of applying for a BN(O) passport or Certificate of Identity. It also enables these applicants to submit their applications for travel documents by post.
The demand for Hong Kong Certificate of Identity and re-entry permits has decreased by 8.2 per cent and 11 per cent respectively.
There are two types of identity card: the Hong Kong Permanent Identity Card which states that the holder has the right of abode in Hong Kong, and the Hong Kong Identity Card which does not state that right. These identity cards will remain valid beyond July 1, 1997, until they are replaced by identity cards issued by the future Hong Kong Special Administrative Region Government.
The fully automated system for booking appointments by telephone has been well accepted by members of the public. It will gradually replace the queuing-for-a-tag system at the Registration of Persons Offices. In 1996, 813 169 new identity cards were issued: 306 285 to new arrivals and persons who reached the ages of 11 or 18 years, and 246 621 to people who had lost or damaged their identity cards or whose identity cards required amendments.
Naturalisation
The deadline of March 31, 1996, for submission of applications for naturalisation or registration as British Dependent Territories citizens by virtue of having a connection with Hong Kong prompted many people to submit their applications in the last two days of March in order to beat the deadline.
From the beginning of the year to March 31, 1996, 211 633 applications for naturalisation were received, representing a 624.9 per cent increase over the 29 193 applications in 1995.
By September, the majority of the applications had been finalised. To help successful applicants apply for BN(O) passports, applications for passports were processed at the same time as the naturalisation certificates were issued to the applicants.
Marriages
Marriages in Hong Kong are governed by the Marriage Ordinance and the Marriage Reform Ordinance. At least 15 days' notice of an intended marriage must be given to the Registrar of Marriages. The registrar may reduce the period of notice or dispense with the notice - but this is done only in exceptional circumstances.
Marriages may take place at any of the 223 places of public worship licensed for the celebration of marriages, or at any of the 10 full-time marriage registries and three part-time sub-registries. Four of the full-time marriage registries are also open on Sundays. During the year, 34 651 marriages were performed in the registries and 2 394 at the licensed places of worship. All records are maintained permanently at the General Register Office in the Queensway Government Offices.
POPULATION AND IMMIGRATION
The Marriage Reform Ordinance provides that all marriages entered into in Hong Kong on or after October 7, 1971, shall imply the voluntary union, for life, of one man and one woman to the exclusion of all others. They may be contracted only in accordance with the Marriage Ordinance. Certain customary marriages and modern marriages remain valid, provided that they were entered into before October 7, 1971. Such marriages may be post-registered or dissolved. During the year, 15 customary and 25 modern marriages were post-registered.
Special arrangements have been made so that Vietnamese migrants in detention centres can register their marriages in Hong Kong. In 1996, 257 marriages were contracted under these arrangements.
The Registrar of Marriages is also responsible for issuing Certificates of Absence of Marriage Records to local residents. During the year, 28 994 such certificates were issued, up 9 per cent from the 26 481 issued in 1995.
Births and Deaths
Births and deaths must be registered. Records are kept in the General Register Office. During the year, 64 559 live births and 32 049 deaths were registered, compared with 68 375 and 30 894, respectively, in 1995. The figures, when adjusted for under- registration, gave a natural increase in population for 1996 of about 0.5 per cent.
A birth which has not been registered within one year may be post-registered with the consent of the Registrar of Births and Deaths. During the year, 303 births were post-registered.
Birth registration services in the urban areas are provided by one main registry on Hong Kong Island and another in Kowloon. There are also five birth registries in the rural areas. In the outlying areas and islands, births are normally registered at rural committee offices by visiting district registrars. Visiting services are also provided to register the births of babies born in detention centres to Vietnamese migrants (511 in 1996). There are two death registries, one on Hong Kong Island and one in Kowloon. Deaths in rural areas are registered at local police stations.
Establishment and Training
At the end of the year, the department had an establishment of 3 586 disciplined staff and 1959 civilian staff, compared with 3 667 and 2 112 in 1995 respectively. A total of 96 Immigration Assistants were recruited in 1996.
The department provides training for new and serving officers. During the year, 116 new recruits completed a 12-week induction course covering law, immigration policies and procedures, foot-drills, physical training, swimming, first-aid and practical attachments, while 2 371 serving officers received various types of job-related and management training. Of these, 14 were sent for overseas attachment and training.
Vietnamese Migrants
The Vietnamese migrant population in Hong Kong camps continued to decline in 1996. During the year, only 1 029 Vietnamese migrants arrived in the territory and 15 375 were either resettled overseas or repatriated to Vietnam. The corresponding figures for 1995 were 460 and 3 186.
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The Hong Kong Government's policy towards Vietnamese migrants is based on the Comprehensive Plan of Action (CPA), which was endorsed by the international community at the Geneva Conference held in June 1989. The CPA provides that while those Vietnamese migrants who are classified as refugees under the terms of the 1951 United Nations Convention and 1967 Protocol. are eligible for resettlement, those who are found not to be refugees should return to Vietnam.
Screening of Vietnamese migrants was effectively completed in October 1994. Resettlement of the refugees continued, mainly to Canada, Australia and the United States, and 274 refugees were resettled overseas during the year.
The voluntary repatriation programme operated by the United Nations High Commissioner for Refugees (UNHCR) is the preferred means of repatriating those who have been determined not to be refugees. Since its inception, 54 007 Vietnamese have returned to Vietnam under this programme.
In October 1991, agreement was reached with the Vietnamese Government on the orderly repatriation of Vietnamese migrants found to be non-refugees. A total of 9 108 persons have been repatriated to Vietnam under this programme.
In March 1996, the Seventh and last Steering Committee of the International Conference on Indo-Chinese Refugees met in Geneva. It was agreed that the CPA would end on June 30, 1996. In the case of Hong Kong, which then held half of the Vietnamese migrant population in the region, it was agreed that the problem should be resolved as soon as possible thereafter.
With the gradual acceleration of the orderly repatriation programme in 1996, the pace of voluntary repatriation also picked-up. Over the 12-month period, 8 140 persons returned to Vietnam under the voluntary repatriation programme, and 6 963 through the orderly repatriation programme.
Some resistance was encountered with orderly repatriation operations. An exercise involving the transfer of about 1 200 Vietnamese migrants from the Whitehead Detention Centre to the High Island Detention Centre was scheduled for May 11, 1996.
In the early hours of May 10, 1996, a riot was sparked off by the migrants when they fired missiles at patrol cars and broke the gates and fences surrounding the detention centre. The migrants set fire to buildings and vehicles and caused widespread damage. The incident was brought under control only after the use of tear smoke. During the incident, 119 migrants escaped; subsequently, 117 of them were recaptured. The government took immediate measures to strengthen the security of the detention centre.
As the number of migrants declined, the government closed the Tai A Chau Detention Centre in September after moving the migrants there to Whitehead. The Tai A Chau Detention Centre was opened in 1991 when the influx of Vietnamese migrants reached a peak.
Migrants returning to Vietnam are assured that they may do so safely and without fear of persecution. The Vietnamese Government has given guarantees that no returnees will be persecuted. Returnees are also closely monitored in Vietnam by the UNHCR to ensure that these guarantees are fully respected. Since March 1989, more than 63 189 Vietnamese migrants have returned home from Hong Kong and there has not been a single substantiated case of persecution.
POPULATION AND IMMIGRATION
The Hong Kong Government and the international community recognise that while the economy in Vietnam has been improving gradually, returnees may have difficulties in re-establishing themselves on their return. The UNHCR therefore provides financial assistance to help returnees resume their normal lives in Vietnam. In addition, the European Community provides returnees with assistance. Hong Kong has also contributed $25 million to small-scale infrastructural projects in the poorer migrant-producing areas in Vietnam.
It cost the Hong Kong Government $753 million to look after the Vietnamese migrants and refugees in 1996. The United Kingdom Government contributed $81 million to the Orderly Repatriation Programme and the UNHCR's programme in Hong Kong.
The UNHCR is responsible for the costs of the care and maintenance of Vietnamese migrants but in 1996 could meet only $23.2 million out of the $100 million incurred, bringing its accumulated debt to the Hong Kong Government since 1989 to $1.145 billion.
By the end of 1996, there were 6 301 Vietnamese migrants and 1 345 refugees in Hong Kong. All Vietnamese migrants have exhausted the status determination process. Their only future lies in their homeland - Vietnam. The government is committed to repatriating all the migrants as soon as possible thus bringing this saga to an early and humane conclusion.
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During the year, 16 Ex-China Vietnamese Illegal Immigrants (ECVIIs), most of whom arrived in Hong Kong in 1993, were returned to China. The ECVIIs are Vietnamese migrants who settled in China before arriving in Hong Kong. Once they had sought and obtained asylum in China, they are considered to have no further claim to refugee status or resettlement. It has been Hong Kong's policy to treat them as illegal immigrants and to repatriate them to China. On August 23, 1993, agreement was reached with China to repatriate all the ECVIIs in Hong Kong. The repatriation process was carried out in batches by land and by air. In 1995, some of the ECVIIS challenged the decision to return them to China. The High Court dismissed the action and an appeal against this decision was rejected by the Court of Appeal. The appellants then took the case to the Privy Council, which handed down judgement on November 21, 1996, in their favour. The Administration is studying the effect of this judgement.
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SOVEREIGNTY over Hong Kong reverts to China at midnight on June 30, 1997, when British administration and jurisdiction over the territory will end. Hong Kong will become a Special Administrative Region (SAR) of the People's Republic of China. The Sino-British Joint Declaration, signed between Britain's Prime Minister, Mrs Margaret Thatcher, and China's Prime Minister, Mr Zhao Ziyang, on December 19, 1984, provides that Hong Kong's lifestyle will remain unchanged for 50 years after 1997. The territory will enjoy a high degree of autonomy, except in foreign and defence affairs, and China's socialist system and policies will not be practised in the SAR. (For more on the Joint Declaration, see Chapter 4.)
In recent years, Hong Kong's relationship with China has strengthened - not only in terms of business ties but also in the extent of government contacts and the flow of people. This close relationship is the product of culture, location and history.
Hong Kong's history has been one of material and social improvement: the expansion of cities and towns by cutting into hillsides; reclaiming land from the sea; and the building of homes, schools, hospitals and other public facilities to meet the demands of the growing population.
Archaeological Background
Archaeological studies in Hong Kong, which began in the 1920s, have uncovered evidence of ancient human activities at many sites along the winding shoreline, testifying to events over more than 6 000 years. The interpretation of these events is still a matter of academic discussion. Archaeologically, Hong Kong is but a tiny part of the far greater cultural sphere of South China, itself as yet imperfectly known.
Despite suggestions that local prehistoric cultures developed out of incursions from North China or South-East Asia, a growing number of scholars believe the prehistoric cultures within the South China region evolved locally, independent of any major outside influences. There is little dispute, on the other hand, that these earliest periods, from the close of the fourth millennium BC, must be seen within the framework of a changing environment in which sea levels rose from as much as 100 metres below the present inexorably submerging vast tracts of coastal plain and establishing a basically modern shoreline and ecology to which human groups had to adapt if they were not to perish.
The stone tools, pottery and other artefacts relied on for an insight into the lives of Hong Kong's ancient inhabitants, are for the most part preserved in coastal deposits. This pattern of coastal settlement points to a strong maritime orientation and an economy geared to the exploitation of marine resources. However, it would be unwise
HISTORY
to over-emphasise this point, since the discovery of archaeological remains is influenced by many factors governing their survival. For example, the erosion of the hilly terrain has been severe and evidence of inland settlement is scanty, though not totally absent.
Recent excavations have revealed two main Neolithic cultures lying in stratified sequence. At the lower, older level, coarse, cord-marked pottery has been found together with a fine, soft fragile pottery decorated with incised line, perforations and occasionally painted. Chipped and polished stone tools are also present. Current indications suggest a 4th millennium BC date for this initial phase.
Cord-marked pottery and chipped stone tools continue into the higher, later levels, in which appears a new ceramic form decorated with a wide range of impressed geometric patterns. In this phase, beginning in the mid-3rd millennium BC, polished stone tools show better workmanship and a proliferation of forms, some with steps and shoulders - features probably connected with improvements in hafting techniques.
Ornaments such as rings, some slotted, were also made from quartz and other suitable stones. These adornments came in a range of sizes, sometimes displaying exquisite craftsmanship.
The final phase of Hong Kong's prehistory is marked by the appearance of bronze in about the middle of the 2nd millennium BC. Bronze artefacts do not seem to have been in common use, but fine specimens of weapons, knives, arrowheads and halberds, and tools such as socketed axes and fish hooks have been excavated from Hong Kong sites. There is evidence, too, in the form of stone moulds from Kwo Lo Wan on Chek Lap Kok Island, Tung Wan and Sha Lo Wan on Lantau Island, and Tai Wan and Sha Po Tsuen on Lamma Island, that the metal was worked locally.
The pottery of the Bronze Age comprises a continuation of the earlier cord- impressed and geometric traditions and a new type of ware, fired at a much higher temperature leading to vitrification. This so-called hard geometric ware is decorated with designs, many of which are reminiscent of the geometric patterns of the late Neolithic period, but with their own distinctive style, including the 'Kui-dragon' or 'double F' pattern so characteristic of the region during this period.
Archaeology is silent on such questions as the ethnic and linguistic affinities of the ancient peoples. However, ancient Chinese literary records make references to maritime people known as 'Yue' occupying China's south-eastern seaboard. It is probable, therefore, that at least some of Hong Kong's prehistoric inhabitants belonged to the 'Hundred Yue', as this diverse group of peoples was often called.
Interesting archaeological features, almost certainly made by these people, include the rock carvings, most of which are geometric in style, at Shek Pik on Lantau Island; on Kau Sai Chau, Po Toi, Cheung Chau and Tung Lung islands; and at Big Wave Bay and Wong Chuk Hang on Hong Kong Island.
The military conquest of South China by the north during the Qin (221-207 BC) and Han (206 BC-220 AD) dynasties must have brought increasing numbers of Han settlers into the region and exerted a variety of influences on the indigenous populations. Testimony to this is the discovery, in excavations, of coins of the Han period, but the outstanding monument to this turbulent period is undoubtedly the
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HISTORY
fine brick-built tomb uncovered at Lei Cheng Uk in 1955 with its array of typical Han tomb furniture, dateable from the early to middle Eastern Han period.
Recent rescue excavations at Pak Mong on Lantau Island, on Kau Sai Chau Island and Tung Wan Tsai on Ma Wan Island all yielded considerable quantities of Han Dynasty finds in well-stratified sequences, which included pottery vessels of various kinds and iron implements. They provide important clues to understanding the daily life and activities of the local people of that period.
Archaeological remains from later historic periods are still relatively rare. Recent work has thrown a welcome light on one aspect of life in Hong Kong during the Tang Dynasty (618-907 AD), through a study of the dome-shaped lime kilns which are an almost ubiquitous feature of the territory's beaches. Lime was a valuable commodity useful for caulking and protecting wooden boats against marine organisms, water- proofing containers, dressing the acid soils of agricultural fields, building and salt production among other purposes. It clearly played an important role in the economy of the period.
Strong traditions link Hong Kong with the events surrounding the Mongol incursions and the concluding chapters of the Song Dynasty in the 13th century AD. Several local finds are from this period: the Sung Wong Toi inscription, now relocated near the entrance to the Hong Kong International Airport; the Song inscription in the grounds of the Tin Hau Temple at Joss House Bay; caches of Song coins from Shek Pik, Mai Po and Kellet Island; and celadons of Song type from various sites, especially Nim Shue Wan and Shek Pik on Lantau Island.
Recent studies are beginning to shed fresh light on events in Hong Kong during the Ming (1368-1644) and Qing (1644-1911) dynasties. These include an analysis of considerable quantities of Ming blue and white porcelain collected and excavated from Penny's Bay, Lantau. It is very fine quality export ware of the kind which found its way to the courts of Southeast Asia and further west, and dates from the first few decades of the 16th century AD.
The excavation of the Qing period fort on Tung Lung Island has revealed fascinating details of the internal arrangements of the fortification and everyday utensils of a remote garrison during the final stages of Imperial China. Recent investigations at the Kowloon Walled City site also uncovered remnants of the old garrison wall and the two stone plaques above the original South Gate, which bore the Chinese characters 'South Gate' and 'Kowloon Garrison City', respectively.
A Place from Which to Trade
In its early days, the territory was regarded as an uninviting prospect for settlement. A population of about 3 650 was scattered over 20 villages and hamlets, and 2 000 fishermen lived on board their boats in the harbour. Its mountainous terrain deficient in fertile land and water, Hong Kong possessed only one natural asset - a fine and sheltered anchorage. Largely the reason for the British presence, which began in the 1840s, Victoria Harbour was strategically located on the trade routes of the Far East, and was soon to become the hub of a burgeoning entrepôt trade with China.
Hong Kong's development into a commercial centre began with its founding as a settlement under the British flag in 1841. At the end of the 18th century, the British 404 dominated the foreign trade at Canton (Guangzhou) but found conditions
HISTORY
unsatisfactory, mainly because of the conflicting viewpoints of two quite dissimilar civilisations.
The Chinese regarded themselves as the only civilised people and foreigners trading at Canton were subject to residential and other restrictions. Confined to the factory area, they were allowed to remain only for the trading season, during which they had to leave their families at Macau. They were forbidden to enter the city or to learn the Chinese language. Shipping dues were arbitrarily varied and generally, much bickering resulted between the British and Chinese traders. Yet, there was mutual trust and the spoken word alone was sufficient for even the largest transactions.
Trade had been in China's favour and silver flowed in until the growth of the opium trade from 1800 onwards reversed this trend. The outflow of silver became more marked from 1834, after the East India Company lost its monopoly of the China trade, and the foreign free traders, hoping to get rich quickly, joined the lucrative opium trade which the Chinese had made illegal in 1799. This led to the appointment of Lin Zexu (Lin Tse-hsu) in March 1839 as special Commissioner in Canton with orders to stamp out the opium trade. A week later, he surrounded the foreign factories with troops, stopped food supplies and refused to let anyone leave until all stocks of opium had been surrendered, and dealers and ships' masters had signed a bond not to import opium on pain of execution. Captain Charles Elliot, RN, the British Government's representative as Superintendent of Trade, was shut up with the rest and authorised the surrender of 20 283 chests of opium after a siege of six weeks.
Elliot would not allow normal trade to resume until he had reported fully to the British Government and received instructions. The British community retired to Macau and, when warned by the Portuguese Governor that he could not be responsible for their safety, took refuge on board ships in Hong Kong harbour in the summer of 1839.
The Foreign Secretary, Lord Palmerston, decided that the time had come for a settlement of Sino-British commercial relations. Arguing that, in surrendering the opium, the British in Canton had been forced to ransom their lives though, in fact, their lives had never been in danger - he demanded either a commercial treaty that would put trade relations on a satisfactory footing, or the cession of a small island where the British could live under their own flag free from threats.
An expeditionary force arrived in June 1840 to back these demands, and thus began the so-called First Opium War (1840-42). Hostilities alternated with negotiations until agreement was reached between Elliot and Qishan (Keshen), the Manchu Commissioner who had replaced Lin after the latter was exiled in disgrace over the preliminaries of a treaty.
Under the Convention of Chuenpi (Chuanbi) signed on January 20, 1841, Hong Kong Island was ceded to Britain. A naval landing party hoisted the British flag at Possession Point on January 26, 1841, and the island was formally occupied. In June, Elliot began to sell plots of land and settlement began.
Neither side accepted the Chuenpi terms. The cession of a part of China aroused shame and anger among the Chinese, and the unfortunate Qishan was ordered to Peking (Beijing) in chains. Palmerston was equally dissatisfied with Hong Kong, which he contemptuously described as 'a barren island with hardly a house upon it',
405
HISTORY
406
and refused to accept it as the island station that had been demanded as an alternative to a commercial treaty.
'You have treated my instructions as if they were waste paper,' Palmerston told Elliot in a magisterial rebuke, and replaced him. Elliot's successor, Sir Henry Pottinger, arrived in August 1841 and conducted hostilities with determination. A year later, after pushing up the Yangtze River (Chang Jiang) and threatening to assault Nanking (Nanjing), he brought the hostilities to an end by the Treaty of Nanking, signed on August 29, 1842.
In the meantime, the Whig Government in England had fallen and, in 1841, the new Tory Foreign Secretary, Lord Aberdeen, issued revised instructions to Pottinger, dropping the demand for an island. Pottinger, who had returned to Hong Kong during the winter lull in the campaign, was pleased with the progress of the new settlement and, in the Treaty of Nanking, deviated from his instructions by demanding both a treaty and an island, thus securing Hong Kong.
Five Chinese ports, including Canton, were also opened for trade. The commercial treaty was embodied in the supplementary Treaty of the Bogue (Humen) in October 1843, by which the Chinese were allowed free access to Hong Kong Island for trading purposes.
Lease of the New Territories
The Second Anglo-Chinese War (1856-58) arose out of disputes over the interpretation of the earlier treaties and over the boarding of a British lorcha, the Arrow, by Chinese in search of suspected pirates. The Treaty of Tientsin (Tianjin) in 1858, which ended the war, gave the British the privilege of diplomatic representation in China. The first British envoy, Sir Frederick Bruce, who had been the first Colonial Secretary in Hong Kong, was fired on at Taku (Dagu) Bar on his way to Peking to present his credentials, and hostilities were renewed from 1859-60.
The troops serving on this second expedition camped on Kowloon Peninsula, as the territory's earliest photographs show. Finding it healthy, they wished to retain it as a military cantonment, with the result that Sir Harry Parkes, Consul at Canton, secured from the Viceroy the perpetual lease of the peninsula as far north as Boundary Street, including Stonecutters Island. The Convention of Peking in 1860, which ended the hostilities, provided for its outright cession.
Other European countries and Japan subsequently demanded concessions from China, particularly after Germany, France and Russia rescued China from the worst consequences of its defeat by Japan in 1895. In the ensuing tension, Britain felt that efficient defence of Hong Kong harbour demanded control of the land around it.
―
By a convention signed in Peking on June 9, 1898, respecting an extension of Hong Kong territory, the New Territories - comprising the area north of Kowloon up to the Shum Chun (Shenzhen) River, and 235 islands was leased for 99 years. The move was directed against France and Russia, not against China whose warships were allowed to use the wharf at Kowloon City. There, Chinese authority was permitted to continue 'except insofar as may be inconsistent with the military requirements for the defence of Hong Kong'. However, an order-in-council of December 27, 1899, revoked this clause and the British unilaterally took over Kowloon City. There was some desultory opposition when the British took over the New Territories in April 1899, but this soon disappeared. The area was declared to be
HISTORY
part of the overall territory of Hong Kong but was administered separately from the urban area.
Initial Growth
The new settlement did not go well at first. It attracted unruly elements, while fever and typhoons threatened life and property. Crime was rife. The population rose from 32 983 (31 463 Chinese) in 1851 to 878 947 (859 425 Chinese) in 1931. The Chinese influx was unexpected because it was not anticipated they would choose to live under a foreign flag.
The Chinese asked only to be left alone and thrived under a liberal British rule. Hong Kong became a centre of Chinese emigration and trade with Chinese communities abroad. Ocean-going shipping using the port increased from 2 889 ships in 1860 to 23 881 in 1939. The dominance of the China trade forced Hong Kong to conform to Chinese usage and to adopt the silver dollar as the currency unit in 1862. In 1935, when China went off silver, Hong Kong had to follow suit with an equivalent 'managed' dollar.
Hong Kong's administration followed the normal pattern for a British territory overseas, with a governor nominated by Whitehall and nominated Executive and Legislative Councils with official majorities. The first non-government members of the Legislative Council were nominated in 1850, and the first Chinese in 1880 (Singapore-born lawyer Ng Choy); the first non-government members of the Executive Council appeared in 1896, and the first Chinese in 1926 (Sir Shouson Chow). In 1972, the long-standing arrangement that two electoral bodies - the Hong Kong General Chamber of Commerce and the Unofficial Justices of the Peace- were each allowed to nominate a member to the Legislative Council, was discontinued.
The British residents pressed strongly for self-government several times, but the UK government consistently refused to allow the Chinese majority to be subject to the control of a small European minority. A Sanitary Board was set up in 1883, became partly elected in 1887, and developed into the Urban Council in 1936.
The intention, at first, was to govern the Chinese through Chinese magistrates seconded from the mainland. But this system of two parallel administrations was only half-heartedly applied and broke down mainly because of the weight of crime. It was completely abandoned in 1865 in favour of the principle of equality of all races before the law. In that year, the Governor's instructions were significantly amended to forbid him to assent to any ordinance 'whereby persons of African or Asiatic birth may be subjected to any disabilities or restrictions to which persons of European birth or descent are not also subjected'. Government policy was laissez-faire, treating Hong Kong as a market place open to all and where the government held the scales impartially.
Public and utility services developed the Hong Kong and China Gas Company in 1861, the Peak Tram in 1885, the Hongkong Electric Company in 1889, China Light and Power in 1903, the electric tramways in 1904 and the then government- owned Kowloon-Canton Railway, completed in 1910. Successive reclamations began in 1851 notably one completed in 1904 in Central District, which produced Chater Road, Connaught Road and Des Voeux Road; and another in Wan Chai between 1921 and 1929.
407
HISTORY
408
Public education began in 1847 with grants to the Chinese vernacular schools. In 1873, the voluntary schools - mainly run by missionaries - were included in a grant scheme. The College of Medicine for the Chinese, founded in 1887 with Sun Yat Sen as one of its first two students, developed into the University of Hong Kong in 1911 and offered arts, engineering and medical faculties.
After the Chinese revolution of 1911, which overthrew the Manchu Dynasty, there was a long period of unrest in China and many people found shelter in Hong Kong. Agitation continued after Chinese participation in World War I brought in its wake strong nationalist and anti-foreign sentiment-inspired both by disappointment over failure at the Versailles peace conference to regain the German concessions in Shantung (Shandong), and by the post-war radicalism of the Kuomintang. The Chinese sought to abolish all foreign treaty privileges in China. Foreign goods were boycotted and the unrest spread to Hong Kong, where a seamen's strike in 1922 was followed by a serious general strike in 1925-26 under pressure from Canton. This petered out, though not before causing considerable disruption in Hong Kong. Britain, with the largest foreign stake in China, was at that time a main target of anti- foreign sentiment, but it was soon to be replaced by Japan in this odious role.
The 1930s and World War II
During World War I, Japan presented its '21 demands' to China. In 1931, Japan occupied Manchuria and tried to detach China's northern provinces, leading to open war in 1937. Canton (Guangzhou) fell to the Japanese in 1938, resulting in a mass flight of refugees to Hong Kong. It was estimated that some 100 000 refugees entered in 1937, 500 000 in 1938 and 150 000 in 1939 - bringing Hong Kong's population at the outbreak of World War II to an estimated 1.6 million. It was thought that at the height of the influx, about 500 000 people were sleeping in the streets.
Japan entered World War II when, on December 7, 1941, its aircraft bombed United States warships at Pearl Harbour. At approximately the same time, Japanese armed forces attacked Hong Kong (December 8, 1941, local time). The Japanese invaded Hong Kong from across the mainland border and the British were forced to withdraw from the New Territories and Kowloon on to Hong Kong Island. After a week of stubborn resistance on the island, the defenders - including the then Hong Kong Volunteer Defence Corps - were overwhelmed and Hong Kong surrendered on Christmas Day. The Japanese occupation lasted for three years and eight months.
Trade virtually disappeared, currency lost its value, food supplies were disrupted, and government services and public utilities were seriously impaired. Many residents moved to Macau - the neutral Portuguese province hospitably opening its doors to them. Towards the latter part of the occupation, the Japanese sought to ease the food problems by organising mass deportations.
In the face of increasing oppression, the bulk of the community remained loyal to the allied cause. Chinese guerrillas operated in the New Territories and escaping allied personnel were assisted by the rural population.
Soon after news of the Japanese surrender was received on August 14, 1945, a provisional government was set up by the Colonial Secretary, Mr (later Sir) Frank Gimson. On August 30, Rear Admiral Sir Cecil Harcourt arrived with units of the British Pacific Fleet to establish a temporary military government. Civil government
Hong Kong's Sikh community worships at its temple in Queen's Road East, Wan Chai (right and below). The Sikh Temple dates from 1901 and most worshippers are descended from men who came to Hong Kong in the late 1800s to work as policemen.
Some of Hong Kong's 50 000 Muslims hear a reading at the Jamia Masjid, the oldest of the territory's four principal masajid (formerly referred to as mosques). The pale green building in Shelley Street, Mid-Levels, was rebuilt in 1915 on the site of another masjid established in the late 1800s. It can hold up to 400 worshippers. Two other major masajid are in Wan Chai and the fourth is on Nathan Road, Kowloon.
IN A MOUERLELALTERADIGA||ADHOODALKILEKO: AZKɛAKREKKATEHOKE KIĽAVEXIBRE-LICHBIKINO ▬▬▬▬▬▬▬
北角衛理登
Music-lovers enjoy a lunchtime
recital at St John's Cathedral, Central, the oldest place of worship for Hong Kong's Anglican community. Its foundation stone was laid in 1847 and it is the second-oldest surviving western building in the territory. (Flagstaff House is older). The local Methodist Church (left) sends a signal to its followers from the top of a short, steep street in
busy North Point.
The Sacred Heart Church at Sai Kung, was built in 1880 and is Hong Kong's oldest surviving Roman Catholic Church. The Roman Catholic Church was established in Hong Kong as a mission prefecture in 1841 and became a diocese in 1946. About 237 416 people, or four per cent of the population, are Catholics, served by 318 priests, 90 brothers, and 576 sisters. There are 62 parishes and 35 centres for Mass.
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HISTORY
was formally restored on May 1, 1946, when Sir Mark Young resumed his interrupted governorship.
The Post-war Years
After the Japanese surrender, Chinese civilians - many of whom had moved into China during the war returned at the rate of almost 100 000 a month. The population, which by August 1945 had been reduced to about 600 000, rose by the end of 1947 to an estimated 1.8 million. In 1948-49, as the forces of the Chinese Nationalist Government began to face defeat in civil war at the hands of the communists, Hong Kong received an influx unparalleled in its history. Hundreds of thousands of people - mainly from Kwangtung (Guangdong) Province, Shanghai and other commercial centres- entered the territory during 1949 and the spring of 1950. By mid-1950, the population had swelled to an estimated 2.2 million. It has continued to rise and now stands at over six million.
After a period of economic stagnation caused by the United Nations' embargo on trade with China, Hong Kong began to industrialise. No longer could the territory rely solely on its port to provide prosperity for its greatly increased population. From the start, the industrial revolution was based on cotton textiles, gradually adding woollens to the list and, in the late 1960s, man-made fibres and made-up garments. Textiles and clothing made up more than half of domestic exports by value during the 1960s. This share has declined over the past 10 years but they still constitute about 40 per cent. Electronic products, watches and clocks, and printing are also important industries.
Associated with events in China, 1966 saw mounting tension in Hong Kong. During 1967, this developed into a series of civil disturbances, affecting all aspects of life and temporarily paralysing the economy. But, by the year's end, the disturbances were contained and the community continued its tradition of peaceful progress.
Hong Kong continued to expand its role as an entrepôt with its neighbours and trade with China was no exception. Coupled with tourism, this led to vast improvements in communications, with an increasing number of people entering China from or through Hong Kong, a natural gateway, each year. One of the territory's carriers, Hong Kong Dragon Airlines, and seven Chinese airlines - China Southern Airlines, Air China, China Eastern Airlines, China Southwest Airlines, China National Aviation Corporation, China Northern Airlines and China Northwest Airlines operate scheduled and non-scheduled services between Hong Kong and cities in China. Three other Chinese airlines - China National Aviation Corporation, China Northern Airlines and China Northwest Airlines operate non- scheduled services between Hong Kong and destinations in China. All together there are over 700 flight movements a week operated between Hong Kong and 40 destinations in China.
-
The Kowloon-Canton Railway Corporation runs, jointly with the Guangzhou Railway (Group) Corporation, four 'through' trains to Guangzhou, one of which stops at Changping, and one train daily to Zhaoqing with intermediate stops at Foshan and Changping. Direct bus services operate different routes into Guangdong and other parts of southern China. Daily ferry services run to Guangzhou and other ports in South China.
409
410
HISTORY
To keep pace with the development, the government places strong emphasis on improving and expanding infrastructure. As a result, the territory has been transformed into a modern city with efficient road and rail links, tunnels and flyovers. New highways have opened up previously remote areas.
The development of Hong Kong's economic base has enabled the public sector to increase spending on housing, education, social welfare and health over the years - from $21.32 billion in 1986-87 to an estimated $110.37 billion in 1996-97.
Hong Kong's public housing programme started with an emergency measure to rehouse some 53 000 people made homeless overnight in a squatter fire in 1953. It now encompasses a wide range of rental and home ownership schemes with comprehensive facilities, and houses about half the population.
The programme is in line with a long-term strategy to produce new housing and to redevelop the older rental estates to meet outstanding demand and rising expectations. The Hong Kong Housing Authority, with primary responsibility for this programme, plans to build some 113 000 new flats in the next three years.
Expenditure on education facilities and improvements has always been a major budget consideration. There are now free and compulsory primary and junior secondary school places for every student up to the age of 15 years. In 1996, the government subsidised Secondary 4 places for about 84.5 per cent of the 15-year-olds in a continuing programme.
Major social welfare advances have been made by the government and non- governmental organisations in the past decade, with expenditure increasing from $2.57 billion in 1986-87 to $15.67 billion during 1996-97.
Medical and health services are also undergoing vigorous development programmes which will provide five more major public hospitals and some 10 additional clinics and polyclinics over the next decade.
A comprehensive system of labour legislation has been developed to provide for employees' benefits and protection, work injury compensation, work safety and occupational health. Due to the restructuring of the local economy, the services industry has replaced manufacturing as the largest employer in Hong Kong. To help workers displaced in the economic restructuring, the Employees Retraining Board has been established to equip them with new skills for alternative employment.
APPENDICES
12345
The Executive Council
The Legislative Council Urban Council
414
415
419
4
Regional Council
420
Overseas Representation in Hong Kong
421
Hong Kong Representation Overseas
422
6
56
5A
Agreed Multilateral Treaties
429
Gross Domestic Product by Expenditure Component at Current
Market Prices
435
Gross Domestic Product by Expenditure Component at
Constant (1990) Market Prices
435
Gross Domestic Product at Current Prices by Economic Activity Gross National Product
436
436
7
1994/95
Consumer Price Index (A)
437
Consumer Price Index (B)
437
Hang Seng Consumer Price Index
438
Composite Consumer Price Index
438
1989/90
Consumer Price Index (A)
439
Consumer Price Index (B)
439
Hang Seng Consumer Price Index
440
Composite Consumer Price Index
440
Public Expenditure by Function
441
9
Public Expenditure by Function (Chart)
442
10
Government Expenditure and the Economy
443
11
Total Government Revenue and Expenditure and Summary of
Financial Position
444
13
14
234
12 Total Government Revenue by Source (Chart)
447
Major Sources of Revenue (1995-96) (Chart) Statement of Licensed Banks' Liabilities and Assets
448
449
15
Statement of Restricted Licence Banks' Liabilities and Assets Statement of Deposit-taking Companies' Liabilities and Assets Exchange Value of the Hong Kong Dollar
449
450
451
16
Money Supply
452
17
Exchange Fund Balance Sheet
453
18
19
Hong Kong's External Trade by Major Trading Partner Hong Kong's External Trade Analysed by Standard International
Trade Classification Revision 3 (SITC Rev. 3)
454
455
20
Hong Kong's Domestic Exports of Principal Commodity Groups
458
411
APPENDICES
21
220
Number of Establishments (other than those in the Civil Service) by
Selected Major Industry Group
459
Number of Persons Engaged (other than those in the Civil
Service) by Selected Major Industry Group and Number of- Manual Workers at Construction Sites
460
23
22227 028
Occupational Injuries
461
24
Imports of Crops, Livestock, Poultry and Fish
462
25
Estimated Local Production of Crops, Livestock, Poultry and Fish
463
26
Local Production and Imports of Ores and Minerals
463
Number of Educational Institutions by Type
464
Number of Students by Type of Educational Institution
464
Number of Full-time Teachers by Type of Educational Institution
465
29
Pupil-teacher Ratios by Type of Educational Institution
466
30
Students Leaving Hong Kong for Overseas Studies
467
31
Public Expenditure on Education
467
32
Population and Vital Statistics
467
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33
Causes of Death
468
Hospital Beds
469
Registered Medical Personnel
469
Social Security Schemes
470
Number of Quarters and Estimated Persons Accommodated as
at 31 March 1996
471
The Land Registry
472
Electricity Distribution
473
Gas Distribution (Towngas)
473
Local Sales of Liquefied Petroleum Gas (LPG)
473
Water Consumption
473
40
Inward and Outward Movements of Aircraft, Vessels, Motor
Vehicles and Trains
474
Inward and Outward Movements of Containers
474
Inward and Outward Movements of Passengers (Immigration
figures)
475
Inward and Outward Movements of Cargo Carried by Different
Modes of Transport
475
41
Registered/Licensed Motor Vehicles
476
Public Transport: Passenger Journeys by Undertaking
476
Public Transport: Average Daily Number of Passenger Journeys
by Different Modes of Transport
477
Public Transport: Cross-Harbour Passenger Journeys by Selected
Modes of Transport
477
42
Traffic Accidents by Area
478
412
***£*
Traffic Casualties by Area
478
43
Crime Statistics
479
44
Fire Services Statistics
482
45
46
47
Judiciary Statistics
Correctional Services
Communications
483
485
486
APPENDICES
48
49
Major Recreation and Amenities Facilities Climatological Summary, 1996
487
488
Climatological Normals (1961-1990)
488
50
Environmental Statistics
51
Governors of Hong Kong
香港公共圖產
NG KONG PUBLIC LIBRAR
489
490
413
414
APPENDICES
APPENDIX 1
(Chapter 2: Constitution and Administration) The Executive Council
Type of
appointment Membership on January 2, 1997
Ex-officio
Presided over by His Excellency the Governor The Right Honourable Christopher Francis PATTEN
Members:
The Chief Secretary
The Honourable Mrs Anson CHAN, CBE, JP
Ex-officio The Financial Secretary
The Honourable Donald TSANG Yam-kuen, OBE, JP
Ex-officio The Attorney General
The Honourable J. F. MATHEWS, CMG, JP
Appointed The Honourable Rosanna WONG Yick-ming, CBE, JP Appointed The Honourable Denis CHANG Khen-lee, QC, JP Appointed
Professor the Honourable Edward CHEN Kwan-yiu, CBE, JP Appointed Dr the Honourable Raymond CH'IEN Kuo-fung, CBE, JP Appointed The Honourable Andrew Li Kwok-nang, CBE, QC, JP Appointed Professor the Honourable Felice Lieh MAK, OBE, JP Appointed The Honourable Vincent CHENG Hoi-chuen, OBE, JP Appointed The Honourable James David McGregor, OBE, ISO, JP
APPENDICES
APPENDIX 2
(Chapter 2: Constitution and Administration)
The Legislative Council
Membership on January 2, 1997
President*:
The Honourable Andrew WONG Wang-fat, OBE, JP (New Territories South-East Constituency)
Members*:
The Honourable Allen LEE Peng-fei, CBE, JP
(New Territories North-East Constituency)
The Honourable Mrs Selina CHOW LIANG Shuk-yee, OBE, JP (Wholesale and Retail Functional Constituency)
The Honourable Martin LEE Chu-ming, QC, JP
(Hong Kong Island East Constituency)
Dr the Honourable David Li Kwok-po, OBE, LLD (Cantab), JP (Finance Functional Constituency)
The Honourable NGAI Shiu-kit, OBE, JP (Industrial Functional Constituency)
The Honourable SZETO Wah
(Kowloon East Constituency)
The Honourable LAU Wong-fat, OBE, JP (Rural Functional Constituency)
The Honourable Edward Ho Sing-tin, OBE, JP
(Architectural, Surveying and Planning Functional Constituency)
The Honourable Ronald Joseph ARCULLI, OBE, JP (Real Estate and Construction Functional Constituency) The Honourable Mrs Miriam LAU Kin-yee, OBE, JP (Transport and Communication Functional Constituency)
Dr the Honourable Edward LEONG Che-hung, OBE, JP (Medical Functional Constituency)
The Honourable Albert CHAN Wai-yip (New Territories Central Constituency)
The Honourable CHEUNG Man-kwong (Education Functional Constituency)
The Honourable CHIM Pui-chung
(Financial Services Functional Constituency)
415
APPENDICES
The Legislative Council
Membership on January 2, 1997
The Honourable Frederick FUNG Kin-kee (Kowloon West Constituency)
The Honourable Michael Ho Mun-ka (Health Services Functional Constituency)
Dr the Honourable HUANG Chen-ya, MBE (Hong Kong Island West Constituency)
The Honourable Emily LAU Wai-hing (New Territories East Constituency)
The Honourable LEE Wing-tat
(New Territories South-West Constituency)
The Honourable Eric Li Ka-cheung, OBE, JP (Accountancy Functional Constituency)
The Honourable Fred Li Wah-ming (Kowloon South-East Constituency)
The Honourable Henry TANG Ying-yen, JP (Import and Export Functional Constituency)
The Honourable James To Kun-sun (Kowloon South-West Constituency)
LIBRARIES
Dr. the Honourable Samuel WONG Ping-wai, MBE, FEng, JP (Engineering Functional Constituency)
Dr. the Honourable Philip WONG Yu-hong (Commercial Functional Constituency)
Dr. the Honourable YEUNG Sum (Hong Kong Island South Constituency)
The Honourable Howard YOUNG, JP (Tourism Functional Constituency)
The Honourable Zachary WONG Wai-yin (New Territories North-West Constituency)
The Honourable Christine LOH Kung-wai (Hong Kong Island Central Constituency)
416
The Honourable James TIEN Pei-chun, OBE, JP (Industrial Functional Constituency)
1
7
APPENDICES
The Legislative Council
Membership on January 2, 1997
The Honourable LEE Cheuk-yan (Manufacturing Functional Constituency)
The Honourable CHAN Kam-lam (Election Committee)
The Honourable CHAN Wing-chan
(Hotels and Catering Functional Constituency)
The Honourable CHAN Yuen-han
(Kowloon North-East Constituency)
The Honourable Andrew CHENG Kar-foo
(Financing, Insurance, Real Estate and Business Services Functional Constituency)
The Honourable Paul CHENG Ming-fun
(Commercial Functional Constituency)
The Honourable CHENG Yiu-tong
(Labour Functional Constituency)
Dr the Honourable Anthony CHEUNG Bing-leung
(Election Committee)
The Honourable CHEUNG Hon-chung
(New Territories North Constituency)
The Honourable CHOY Kan-pui, JP (Election Committee)
The Honourable David CHU Yu-lin (Election Committee)
Dr the Honourable Albert Ho Chun-yan
(New Territories West Constituency)
The Honourable IP Kwok-him
(Election Committee)
The Honourable LAU Chin-shek
(Kowloon South Constituency)
The Honourable Ambrose LAU Hon-chuen, JP (Election Committee)
Dr the Honourable LAW Cheung-kwok (Election Committee)
417
APPENDICES
The Legislative Council
Membership on January 2, 1997
The Honourable LAW Chi-kwong (Social Welfare Functional Constituency)
The Honourable LEE Kai-ming
(Labour Functional Constituency)
The Honourable LEUNG Yiu-chung
(Textiles and Garments Functional Constituency)
The Honourable Bruce LIU Sing-lee (Kowloon Central Constituency)
The Honourable Lo Suk-ching (Election Committee)
The Honourable MOK Ying-fan
(Urban Council Functional Constituency)
The Honourable Margaret NG
(Legal Functional Constituency)
The Honourable NGAN Kam-chuen
(Regional Council Functional Constituency)
The Honourable SIN Chung-kai
(New Territories South Constituency)
The Honourable TSANG Kin-shing
(Primary Production, Power & Construction Functional Constituency)
Dr the Honourable John TSE Wing-ling
(Election Committee)
The Honourable Mrs Elizabeth WONG CHIEN Chi-lien, CBE, ISO, JP (Community, Social and Personal Services Functional Constituency)
The Honourable Lawrence YUM Sin-ling (Election Committee)
418
* The Legislative Council is entirely elected. The President is elected among members who are themselves elected in either functional constituencies or geographical constituencies, or by the Election Committee Constituency.
APPENDICES
APPENDIX 3
(Chapter 2: Constitution and Administration)
The Urban Council
Elected by Urban Council
Elected by Urban Council
Names of Members on January 2, 1997
Chairman:
Dr Ronald LEUNG Ding-bong, OBE, JP (E)
Vice-Chairman:
Mr IP Kwok-chung (R)
Members:
Mr Joseph CHan Yuek-sut (E) Mr PAO Ping-wing, JP (E)
Mr Ronnie WONG Man-chiu, JP (E) The Honourable Mok Ying-fan (E) Mr Daniel WONG Kwok-tung (E) Ms Christina TING Yuk-chee, JP (R) Mr Ambrose CHEUNG Wing-sum, JP (E) Mr San Stephen WONG Hon-ching (E) Mr CHIANG Sai-cheong (E)
The Honourable Li Wah-ming (E) Mr CHAN Choi-hi (R)
Mr CHAN Noi-yue (R)
Mr Albert LAI Wing-lin (R)
Mr LEUNG Kam-tao (R)
Mr WONG King-cheung (R)
Mr SUEN Kai-cheong (R)
Mr YIU Siu-sing (R)
Mr Steve CHAN Kwok-leung (E)
Mr KAM Nai-wai (E)
Miss Ada WONG Ying-kay (E)
Ms Jennifer CHOW Kit-bing (E)
Mr WONG Kwok-hing (E) Mr Joseph LAI Chi-keong (E)
Mr Daniel To Boon-man (E)
Mr Tim S Manuel CHAN (E)
Mr Christopher CHUNG Shu-kun (E)
Mr LAI Hok-lim (E)
Mr Stanley NG Wing-fai (E)
Mr Eric WONG Chung-ki (E)
Mr TAM Kwok-kiu (E)
Mr WEN Choy-bon (E)
Mr Hugo LAM Man-fai (E)
Mr LEE Kwok-keung (E)
Mr Wu Chi-wai (E)
Ms Grace Au Yuk-har (E)
The Honourable SZETO Wah (E)
Mr Kwok Bit-chun (E)
Mr Steven HUNG Chung-fun (E) Mr Francis TANG Chi-ho (E)
Note: (E)
= Elected.
(R) District Board Representative
419
APPENDICES
APPENDIX 4
(Chapter 2: Constitution and Administration)
The Regional Council
Membership on January 2, 1997
Chairman:
Mr LAM Wai-keung, Daniel, JP
(Ex)
Vice-Chairman:
Mr Chow Yick-hay
(R)
Members:
Mr CHAN Ping
MS CHAN Shu-ying
Mr CHAN TO-yeung
Mr CHAN Yuen-sum, Sumly
Mr CHENG Chun-ping
Mr CHENG Wing-kee, Wellington
The Honourable CHEUNG Hon-chung
MS CHEUNG Yuet-lan
Mr CHING Cheung-ying
Mr CHOW Ping-tim
Mr Chow Wai-tung
Mr Chow Yuk-tong
The Honourable Hō Chun-yan
Mr KAN Chung-nin, Tony
Mr KAN Brian Ping-chee
Mr KWONG Kwok-chuen, Cosmas
Mr LAI Kwok-iu
Mr LAM Hong-wah
Mr LAM Kwok-yin
Mr LAM Wing-yin
The Honourable LAU Wong-fat, OBE, JP
Mr LEE Keng-yip
MS LEE Kwai-chun
(R)
(E)
(E)
(R)
(E)
(Ex)
(E)
(Ex)
The Honourable LEE Wing-tat
Mr LEUNG Che-cheung
Mr LEUNG Kwong-cheong
Mr LEUNG WO-ping
Mr No Wai-cho
(R)
The Honourable NGAN Kam-chuen
(E)
Mr PANG Cheung-wai, Thomas
Mr TAM King-wah, Alan
Mr TING Yin-wah
Mr WAN Yuet-cheung
Mr WAN Yuet-kau
Mr WONG Chi-keung, Johnny
Mr WONG Sing-chi
Mr YIM Tin-sang
420
Note: (E) = Elected.
(R) = District Board Representative. (Ex) =
= Ex-officio (Heung Yee Kuk).
(E)
N
APPENDICES
APPENDIX 5
I. Overseas Representation in Hong Kong
(A) Commonwealth Countries
Countries
Australia
Bahamas
Bangladesh
Barbados
Belize Botswana Canada Ghana Grenada India Jamaica
Kiribati
Malaysia
Maldives
Malta
Mauritius
Represented by Consul-General Honorary Consul Commissioner Honorary Consul Honorary Consul Consul-General Commissioner Honorary Consul Honorary Consul Commissioner Honorary Consul Honorary Consul Commissioner Honorary Consul
Honorary Consul
Honorary Consul
Countries Mozambique Namibia New Zealand Nigeria Pakistan
Papua New Guinea St Kitts & Nevis St Lucia Seychelles Singapore Sri Lanka South Africa
Tonga
Trinidad and Tobago Western Samoa
Represented by Honorary Consul Honorary Consul Consul-General Commissioner Consul-General
Honorary Consul Consul-General Honorary Consul Honorary Consul Commissioner
Honorary Consul Consul-General Honorary Consul Honorary Consul Consul-General
(There is also a Senior British Trade Commissioner)
(B) Foreign Countries
Countries
Argentina
Represented by
Consul-General
Austria
Consul-General
Countries Luxembourg Madagascar
Represented by
Honorary Consul
Honorary Consul
Belgium
Benin
Bhutan
Consul-General
Mali
Honorary Consul
Brazil
Bulgaria
Cameroon
Cape Verde
Central African Republic
Chile
Colombia
Congo
Cuba
Czech Republic
Denmark
Djibouti
Ecuador
Egypt
Consul-General
Fiji
Honorary Consul
Honorary Consul Honorary Consul Consul-General
Consul-General Honorary Consul Consul-in-Charge Honorary Consul Consul-General Consul-General Honorary Consul Honorary Consul Consul-General Consul-General Honorary Consul Consul-General
Monaco
Mongolia Morocco Myanmar Netherlands Norway Oman Panama Paraguay Peru Philippines Poland Portugal Russia Senegal
Marshall Islands
Honorary Consul
Mexico
Consul-General
Honorary Consul
Honorary Consul
Honorary Consul
Consul-General
Consul-General
Consul-General
Honorary Consul
Consul-General
Consul-General
Consul-General
Consul-General
Consul-in-Charge
Consul-General
Consul-General
Consul-General
Finland
Consul-General
Slovak Republic
Honorary Consul
France Gabon
Consul-General
Slovenia
Honorary Consul
Honorary Consul
Germany
Consul-General
Spain Suriname
Consul-General
Honorary Consul
Consul-General
Greece Iceland
Indonesia
Ireland Israel
Honorary Consul-General
Honorary Consul
Honorary Consul
Consul-General
Consul-General
Consul-General
Sweden
Switzerland
Thailand
Togo Tunisia
Italy
Japan
Jordan
Korea
Liberia
Lithuania
Consul-General Honorary Consul Consul-General Honorary Consul Honorary Consul
Turkey
United States of America
Uruguay
Venezuela
Vietnam
Consul-General
Consul-General
Honorary Consul
Honorary Consul
Consul-General
Consul-General
Consul-General
Consul-General
Consul-General
421
422
APPENDICES
II. Hong Kong Representation Overseas
GOVERNMENT OFFICES
EUROPE
Brussels
Hong Kong Economic and Trade Office, Avenue de Tervuren 188A, 1150 Brussels,
Belgium.
Tel: 32-2-775-0088
Fax: 32-2-770-0980
32-2-770-0793
Geneva
Hong Kong Economic and Trade Office,
37-39 rue de Vermont, 1/F,
1211 Geneva 20, Switzerland.
Tel: 41-22-734-90-40
Fax: 41-22-733-99-04
41-22-740-15-01
41-22-740-28-77
London
Hong Kong Economic and Trade Office,
6 Grafton Street, London WIX 3LB, England.
Tel: 44-171-499-9821
Fax: 44-171-495-5033
44-171-493-1964
41-171-629-2199
41-171-409-0647
NORTH AMERICA
New York
Hong Kong Economic and Trade Office, British Consulate General, 680 Fifth Avenue, 22/F, New York, NY 10019, USA. Tel: 1-212-265-8888
Fax: 1-212-541-7321 1-212-974-3209
San Francisco
Hong Kong Economic and Trade Office, British Consulate General, 222 Kearny Street, Suite 402, San Francisco, CA 94108, USA. Tel: 1-415-397-2215
Fax: 1-415-421-0646
Washington
Hong Kong Economic and Trade Office, British Embassy, 1150, 18th Street,
N.W. Suite 475, Washington DC 20036, USA.
Tel: 1-202-331-8947
Fax: 1-202-331-8958
1-202-861-0601
1-202-223-3864
Toronto
Hong Kong Economic and Trade Office, 174 St. George Street, Toronto, Ontario, M5R 2M7, Canada.
Tel: 1-416-924-5544 Fax: 1-416-924-3599 1-416-924-3542
ASIA-PACIFIC
Tokyo
Hong Kong Economic and Trade Office, 7/F, Nishi-Azabu Mitsui Building, 4-17-30, Nishi-Azabu,
Minato-ku, Tokyo 106, Japan. Tel: 81-3-3498-8808
Fax: 81-3-3498-8815
Singapore
Hong Kong Economic and Trade Office, 34-01, Tower 2,
Suntec City,
9 Temasek Boulevard, Singapore 038989. Tel: 65-338-1771
Fax: 65-339-2112
Sydney
Hong Kong Economic and Trade Office,
Hong Kong House,
80 Druitt Street, Level 1,
Sydney NSW 2000, Australia.
Tel: 61-2-9283-3222
Fax: 61-2-9283-3818
Industrial Promotion Units
EUROPE
Brussels
Industrial Promotion Unit
Hong Kong Economic and Trade Office, Avenue de Tervuren 188A,
1150 Brussels, Belgium.
Tel: 32-2-775-0088
Fax: 32-2-770-0980
London
Industrial Promotion Unit,
Hong Kong Economic and Trade Office,
6 Grafton Street, London WIX 3LB, England. Tel: 44-171-499-9821
Fax: 44-171-495-5033
APPENDICES
NORTH AMERICA
New York
Industrial Promotion Unit,
Hong Kong Economic and Trade Office, British Consulate General,
680 Fifth Avenue, 22/F, New York,
NY 10019, USA.
Tel: 1-212-265-7232
Fax: 1-212-974-3209
San Francisco
Industrial Promotion Unit
Hong Kong Economic and Trade Office, British Consulate General,
222 Kearny Street,
Suite 402, San Francisco, CA 94108, USA. Tel: 1-415-397-2215
Fax: 1-415-421-0646
Toronto
Industrial Promotion Unit,
Hong Kong Economic and Trade Office, 174 St. George Street, Toronto, Ontario, M5R 2M7, Canada.
Tel: 1-416-924-5544
Fax: 1-416-924-3599
ASIA-PACIFIC
Tokyo
Industrial Promotion Unit,
Hong Kong Economic and Trade Office, 7/F, Nishi-Azabu Mitsui Building, 4-17-30, Nishi-Azabu, Minato-ku, Tokyo 106, Japan.
Tel: 81-3-3498-8806
Fax: 81-3-3498-8815
Sydney
Industrial Promotion Unit,
Hong Kong Economic and Trade Office,
Hong Kong House,
80 Druitt Street, Level 1,
Sydney NSW 2000, Australia. Tel: 61-2-9283-3222
Fax: 61-2-9283-3818
OTHER ORGANISATIONS
Hong Kong Trade Development Council
EUROPE
Amsterdam
Prinsengracht 771, G/F.,
1017 JZ Amsterdam, The Netherlands. Tel: 31-(020)-627-7101 Fax: 31-(020)-622-8529 Email: amtdc@ibm.net
Athens
13 Demokratias Str
151 27 Melissia, Athens, Greece. Tel: 30-(1)-804-2753 Fax: 30-(1)-804-2891 Email: attdc@ibm.net (Trade enquiries only)
Barcelona
Via Augusta, 18 1 08006 Barcelona, Spain. Tel: 34-(3)-415-8382 34-(3)-415-6628 34-(3)-415-9458
Fax: 34-(3)-416-0148 Email: badtc@ibm.net
Budapest
Rozsa utca 55
H-1064 Budapest, Hungary. Tel: 36-(1)-322-0624 Fax: 36-(1)-341-4798 Email: hydtc@ibm.net
Frankfurt
Kreuzerhohl 5-7
60439 Frankfurt, Germany. Tel: 49-(069)-586-011
Fax: 49-(069)-589-0752
Postal Address: P.O. Box 500551 60394 Frankfurt, Germany. Email: frtdc@ibm.net
Geneva
Chemin des Pommiers 6 P.O. Box 331
CH 1196 Geneva Switzerland.
Tel: 41-(022)-999-9917 Fax: 41-(022)-999-9909 Email: pielken@iprolink.ch
Istanbul
Piyalepasa Bulvari Kastel Is Merkezi D. Blok Kat: 5
80370 Piyalepasa, Istanbul, Turkey. Tel: 90-(212)-237-02-25 Fax: 90-(212)-254-98-67
London
Swire House, G/F.,
59 Buckingham Gate, London SWIE 6AJ, England. Tel: 44-(0171)-828-1661 Fax: 44-(0171)-828-9976 Email: Intdc@ibm.net For trade enquiries in the UK call 0800-282-980
423
APPENDICES
Milan
2 Piazzetta Pattari 20122 Milan, Italy. Tel: 39-(02)-865-405 Fax: 39-(02)-860-304 Email: mitdc@ibm.net
Moscow
Energeticheskaya St. 6 Moscow, 111116 Russia. Tel: 7-(095)-362-7515 Fax: 7-(095)-956-0552 Email:mwtdc@ibm.net
Paris
18, rue d'Aguesseau 75008 Paris, France.
Tel: 33-(01)-47-42-41-50 Fax: 33-(01)-47-42-77-44 Email: patdc@ibm.net
Prague
Dum U Vence, Prokopska 8 Mala Strana, 118 00 Praha 1
Czech Republic.
Tel: 42-(2)-5731-2150 Fax: 42-(2)-5731-2185 Email: cztdc@ibm.net
Stockholm
Kungsgatan 6
S-111 43, Stockholm, Sweden. Tel: 46-(08)-411-5690 Fax: 46-(08)-723-1630
Postal Address: P.O. Box 7505 S-103 92 Stockholm, Sweden. Email: sttdc@ibm.net
Vienna
Rotenturmstrasse 1-3/8/24 A-1010 Vienna, Austria.
Tel: 43-(01)-533-98-18
Fax: 43-(01)-535-31-56 Email: vitdc@ibm.net
Warsaw
Ul Flory 9, PL-00586 Warsaw Poland.
Tel: 48-(22)-496-068
Fax: 48-(22)-493-584
Los Angeles
Los Angeles World Trade Centre 350 S. Figueroa St., Suite #282
Los Angeles, CA 90071-1386, U.S.A. Tel: 1-(213)-622-3194
Fax: 1-(213)-613-1490 Email: latdc@ibm.net
Miami
Courvoisier Centre II, Suite 509
601 Brickell Key Drive
Miami, FL 33131, U.S.A.
Tel: 1-(305)-577-0414
Fax: 1-(305)-372-9142 Email: mmtdc@ibm.net
New York
219 East 46th Street
New York, NY 10017, U.S.A. Tel.: 1-(212)-838-8688
Fax: 1-(212)-838-8941 Email: nytdc@ibm.net
San Francisco
c/o Hong Kong Economic and Trade Office, 222 Kearny Street, 4th Fl., Suite 402
San Francisco, CA 94108, U.S.A.
Tel: 1-(415)-677-9038 Fax: 1-(415)-421-0646 (Trade enquiries only) Email: sftdc@ibm.net
Toronto
G/F., Hong Kong Trade Centre
9 Temperance Street
Toronto, Ontario M5H 1Y6 Canada.
Tel.: 1-(416)-366-3594
Fax: 1-(416)-366-1569
Email: totdc@ibm.net
Vancouver
Suite #717, 938 Howe Street Vancouver, B.C.
V6Z IN9, Canada Tel.: 1-(604)-685-0883 Fax: 1-(604)-331-4418 Email: vctdc@ibm.net
NORTH AMERICA
For trade enquiries in the US call 1-800-TDC-HKTE
Chicago
333 N. Michigan Ave., Suite 2028 Chicago, IL 60601, U.S.A. Tel: 1-(312)-726-4515
Fax: 1-(312)-726-2441
424
Email: chtdc@ibm.net
LATIN AMERICA
Buenos Aires Sarmiento 760, 1 Piso 1041, Buenos Aires Republica Argentina. Tel.: 54-(1)-394-9590 Fax: 54-(1)-394-1141 Email: artdc@ibm.net
APPENDICES
Mexico City
Manuel E. Izaguirre #13, 3er piso Ciudad Satelite
Mexico City 53100, Mexico.
Tel: 52-(5)-572-41-13, 572-41-31
Fax: 52-(5)-393-59-40
Email: mctdc@ibm.net
Panama City
Condominio Plaza Internacional
Primer Alto, Oficina No. 27
Edificio del Banco Nac de Panama.
Via Espana y Calle 55
Panama City, Republica de Panama.
Tel: (507) 269-5894, 269-5611, 269-5109 Fax: (507) 269-6183
Postal Address: Apdo. Post. 6-4510
El Dorado, Panama City, Panama Email: hktdc@pananet.com
Santigo
Av. Providencia 365. Of. 42
Santiago, Chile.
Tel: 56-(2)-205-2213
Fax: 56-(2)-225-1044
Email: cltdc@ibm.net
Sao Paulo
Rua Dr Franco da Rocha No. 137
1st Floor, Suite II, 05015-040 Sao Paulo, Brazil.
Tel: 55-(11)-864-2144
Fax: 55-(11)-262-7330 Email: bztdc@ibm.net
ASIA
Bangkok
14/F., Sindhorn Building, Tower 2 130-132 Wireless Road, Lumpini Paturnwan, Bangkok 10330, Thailand. Tel.: 66-(2)-263-2292
Fax: 66-(2)-263-2293
Email: thtdc@ibm.net
Beijing
Bright China Chang An Building Tower 2, Rm. 917-918
No. 7 Jianguornen Nei Avenue
Dong Cheng District, Beijing 100005
People's Republic of China.
Tel.: 86-(10)-6510-1700
Fax: 86-(10)-6510-1760 Email: bjtdc@public3.bta.net.cn
Chengdu
Rm 2604, Minshan Hotel Business Bldg., No. 55 Section 2, Renmin Nan Rd. Chengdu, Sichuan 610 021, PRC.
Ext.: 2604
Tel.: 86-(028)-558-3333
Fax: 86-(028)-556-1540
Dalian
Rooms 712-714, Furama Hotel Dalian
60 Renmin Road, Dalian 116 001, PRC. Tel: 86-(0411)-280-1076
Fax: 86-(0411)-280-1074
Fuzhou
Unit B, 30/F., World Trade Plaza 71 Wusi Road, Fuzhou
Fujian 350 001, PRC.
Tel: 86-(0591)-754-7197 Fax: 86-(0591)-754-7198 Email: fztdc@public.fz.fj.cn
Guangzhou
23rd Fl., Guangdong Int'l Bldg., Annex A, 339 Huanshi Dong Lu, Guangzhou 510 098, PRC.
Tel: 86-(20)-8331-2889, 8331-1068 Fax: 86-(20)-8331-1081
Email: gztdc@public1.guangzhou.gd.cn
Ho Chi Minh City
137, Nguyen Van Troi St.
Phu Nhuan Dist
Ho Chi Minh City, S.R. Vietnam. Tel.: 84-(8)-845-7922
84-(8)-845-7773
Fax: 84-(8)-845-8201
Jakarta
PT. Fortune Pramana Rancang Gedung Fortune 3
JL. Ampera Raya 37 Jakarta 12560, Indonesia. Tel.: 62-(021)-780-0968 Fax: 62-(021)-780-0962 Email: iatdc@ibm.net
Kuala Lumpur
2nd Floor, Wisma Damansara Jalan Semantan, Damansara Heights 50490 Kuala Lumpur, Malaysia.
Tel.: 60-(3)-255-2277
Fax: 60-(3)-253-8326 Email: mltdc@ibm.net
Kunming
Room 2216, 2/F., Shopping Arcade King World Hotel
28 Beijing Road South
Kunming, Yunnan 650 011, PRC. Tel.: 86-(0871)-319-1719
Fax: 86-(0871)-351-3692
Nagoya
Sakae-Machi Bldg., 4Fl., 3-23-31 Nishiki, Naka-ku, Nagoya 460, Japan. Tel: 81-(052)-971-3626 Fax: 81-(052)-962-0613 Email: ngtdc@ibm.net
425
APPENDICES
426
Osaka
Osaka Ekimae Dai-San Bldg., 6th floor,1-1-3, Umeda, Kita-ku Osaka 530, Japan.
Tel: 81-(06)-344-5211 Fax: 81-(06)-347-0791 Email: ostdc@ibm.net
Qingdao
Rooms 367-368, Haitian Hotel
39 Zhan Shan Dalu Qingdao 266 071, PRC. Tel: 86-(532)-388-6359 Fax: 86-(532)-388-6052
Seoul
803 KFSB Building
16-2, Yoido-dong, Youngdeungpo-ku
Seoul, Korea.
Tel: 82-(02)-782-6115/7
Fax: 82-(02)-782-6118
Shanghai
23/F., East Ocean Centre
588 Yanandonglu
Shanghai 200 001, PRC.
Tel: 86-(21)-6352-8488, 6352-3453 Fax: 86-(21)-6352-3454
Email: hktdcsho@public.sta.net.cn
Shenzhen
Unit 06, 15th Floor,
Shenzhen Development
Centre Bldg.,
Renminnan Road
Shenzhen, PRC.
Tel: 86-(755)-228-0112/3
Fax: 86-(755)-228-0114
Email: sztdc@public.szqtt.net.cn
Singapore
15 McCallum Street 02-03 Natwest Centre Singapore 069045, Tel: 65-227-9077
Fax: 65-227-9177
Email: snhktdc@pqùfic.net.sg
Taipei
10th Floor, 315 Sung Chiang Road,
Taipei, Taiwan.
Tel: 886-(2)-516-6085
Fax: 886-(2)-502-2115
Email: cltdc@ibm.net
Email: tdctw@ms4.hinet.net
Tianjin
Room 506, Tianjin Int'l Bldg.,
75 Nanjing Road
Heping District
Tianjin 300 050, PRC.
Tel: 86-(022)-330-5855
Fax: 86-(022)-330-5903
Tokyo
Trusty Kojimachi Bldg., 6/F., 3-4 Kojimachi
Chiyoda-ku, Tokyo 102, Japan. Tel: 81-(03)-5210-5850 Fax: 81-(03)-5210-5860 Email: tytdc@ibm.net
Wuhan
Unit 06, 7th Floor
Wuhan International Trade Commerce Centre
No. 297 Xinhuahoulu
Hankou, Wuhan 430 015, PRC.
Tel: 86-(027)-575-7122 Fax: 86-(027)-575-7120
AUSTRALIA
Sydney
71 York Street
Sydney, NSW 2000, Australia.
Tel: 61-(02)-9299-8343
Fax: 61-(02)-9290-1889
Postal Address: G.P.O. Box 3877 Sydney, NSW 2001, Australia Email: sytdc@ibm.net
MIDDLE EAST
Dubai
New Juma Al-Majid Building
Dubai Sharjah Road, Dubai, U.A.E.
Tel: 971-(4)-625-255
Fax: 971-(4)-663-764
Postal Address: P.O. Box 7434
Dubai, U.A.E.
Email: tdcorghk@emirates.net.ae
SOUTH AFRICA
Johannesburg
14th Floor, Penmor Tower
1 Rissik Street
Johannesburg 2000
South Africa.
Tel: 27-(11)-497-2942
Fax: 27-(11)-497-2945
Hong Kong Tourist Association
EUROPE
Barcelona
c/o Sergat España SL,
Pau Casals 4, 08021 Barcelona, Spain.
Tel: (34 3) 414-17-94
Fax: (34 3) 201-86-57
Internet: hktabcn@hkta.org
APPENDICES
Frankfurt
Humboldt Strasse 94,
D-60318 Frankfurt/Main, Germany. Tel: (49 69) 95-91-29/0 Fax: (49 69) 597-80-50 Internet: hktafra@hkta.org
London
3/F., 125 Pall Mall,
London SW1Y SEA, UK. Tel: (44 171) 930-4775 Fax: (44 171) 930-4777 Internet: hktalon@hkta.org
Paris
Escalier C, 8ème étage, 53 rue François ler, 75008 Paris, France. Tel: (331) 4720-3954 Fax: (331) 4723-0965 Internet: hktapar@hkta.org
Rome
c/o Sergat Italia, Srl
Via Monte dei Cenci 20, 00186 Roma, Italy.
Tel: (396) 688-013-36/686-9112 Fax: (39 6) 687-3644 Internet: hktarom@hkta.org
Stockholm
c/o Airline Marketing Services P.O. Box 12179,
S-102 25 Stockholm, Sweden.
Tel: (468) 653-5711 Fax: (46 8) 651-1067 Internet: hktasto@hkta.org
NORTH AMERICA
Chicago
Suite 200, 610 Enterprise Drive,
Oak Brook, IL 60521, USA.
Tel: (1630) 575-2828
Fax: (1 630) 575-2829
Internet: hktachi@hkta.org
Los Angeles
Suite 1220, 10940 Wilshire Boulevard,
Los Angeles, CA 90024-3915, USA. Tel: (1310) 208-4582
Fax: (1 310) 208-1869 Internet: hktalax@hkta.org
New York
5th Floor, 590 Fifth Avenue,
New York, NY 10036-4706, USA. Tel: (1212) 869-5008/869-5009 Fax: (1 212) 730-2605 Internet: hktanyc@hkta.org
Toronto
3rd Floor, Hong Kong Trade Centre, 9 Temperance Street, Toronto, Ontario M5H 1Y6, Canada.
Tel: (1 416) 366-2389
Fax: (1 416) 366-1098 Internet: hktator@hkta.org
ASIA
Tokyo
4th Floor, Toho Twin Tower Building, 1-5-2 Yurakucho,
Chiyoda-ku, Tokyo 100, Japan.
Tel: (81 3) 3503-0731
Fax: (813) 3503-0736
Osaka
8th Floor, Osaka Saitama Building, 3-5-13 Awaji-machi, Chuo-ku, Osaka 541, Japan.
Tel: (816) 299-9240 Fax: (81 6) 229-9648
Singapore
9 Temasek Boulevard, #34-03 Suntec Tower Two, Singapore 038989, Republic of Singapore. Tel: (65) 336-5800
Fax: (65) 336-5811
Internet: hktasin@hkta.org
Taipei
9th Floor, 18 Chang An East Road, Sec 1, Taipei, Taiwan.
Tel: (886 2) 581-2967
Fax: (886 2) 581-6062 Internet: hktatpe@hkta.org
Seoul
c/o Glocom Korea
Suite 1105, Paiknam Building, 188-3 Eulchiro 1-Ka,
Chung-Gu, Seoul, South Korea. Tel: (822) 778-4403 Fax: (82 2) 778-4404 Internet: hktakor@hkta.org
SOUTH AFRICA
Johannesburg
c/o Development Promotions (Pty.) Ltd., 7th Floor, Everite House,
20 De Korte Street,
Braamfontein 2001, South Africa.
Tel: (27 11) 339-4865
Fax: (27 11) 339-2474
Internet: hktajnb@hkta.org
427
428
APPENDICES
AUSTRALIA
Sydney
Level 4, Hong Kong House, 80 Druitt Street,
Sydney, NSW 2000, Australia. Tel: (612) 9283-3083 Fax: (612) 9283-3383 Internet: hktasyd@hkta.org
香港公共
NEW ZEALAND
Auckland
P.O. Box 2120, Auckland, New Zealand. Tel: (649) 575-2707
Fax: (649) 575-2620
書館
YONG KONG
PUBLIC LIBRA
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APPENDICES
APPENDIX 5A
(Chapter 4: Implement of the Sino-British Joint Declaration)
List of Agreed Multilateral Treaties to Apply to Hong Kong Special Administrative Region
A. Civil Aviation
I.
2.
3.
4.
Convention for the Unification of Certain Rules relating to International Carriage by Air, done at Warsaw on October 12, 1929, as amended by the Hague Protocol 1955.
Convention Supplementary to the Warsaw Convention for the Unification of Certain Rules relating to International Carriage by Air Performed by a Person other than the Contracting Carrier, done at Guadalajara on September 18, 1961.
The Convention on International Civil Aviation done at Chicago on December 7, 1944, as amended by the 1947 Protocol, 1954 Protocol, 1961 Protocol, 1962 Protocol, 1971 Protocol, 1974 Protocol, 1968 Buenos Aires Protocol and 1977 Montreal Protocol.
International Air Services Transit Agreement done at Chicago on December 7, 1944.
B. Conservation
5.
6.
International Convention for the Regulation of Whaling done at Washington on December 2, 1946, and Protocol to the 1946 Convention done at Washington on November 19, 1956.
Plant Protection Agreement for the South-East Asia and Pacific Region done at Rome on February 27, 1956, and the Amendment to the Plant Protection Agreement done on November 2, 1967.
7.
Convention on Wetlands of International Importance, especially as Waterfowl Habitat, done at Ramsar on February 2, 1971.
Convention for the Protection of the World Cultural and Natural Heritage done at Paris on November 16, 1972.
8.
9.
Convention on International Trade in Endangered Species of Wild Fauna and Flora done at Washington on March 3, 1973.
10. Convention on the Conservation of Migratory Species of Wild Animals done at Bonn on June 23, 1979.
11. Vienna Convention for the Protection of the Ozone Layer done at Vienna on March 22, 1985; Montreal Protocol on Substances that Deplete the Ozone Layer done at Montreal on September 16, 1987; the 1990 London Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer; and the 1992 Copenhagen Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer.
12. Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal done at Basel on March 22, 1989. 13. Convention on the Regulation of Antarctic Mineral Resource Activities done at Wellington on June 2, 1988.
C. Customs
14. International Convention relating to the Simplification of Customs Formalities and Protocol of Signature done at Geneva on November 3,
1923.
15. Agreement on the Importation of Educational, Scientific and Cultural Materials done at Lake Success on November 22, 1950.
16. International Convention to Facilitate the Importation of Commercial Samples and Advertising Material done at Geneva on November 7,
1952.
17. Convention Concerning Customs Facilities for Touring and Additional Protocol to the 1954 Convention Concerning Customs Facilities for
Touring relating to the Importation of Tourist Publicity Documents and Material done at New York on June 4, 1954.
18. Customs Convention on the Temporary Importation of Private Road Vehicles done at New York on June 4, 1954.
19. Customs Convention on the Temporary Importation for Private Use of Aircraft and Pleasure Boats done at Geneva on May 18, 1956.
20. Customs Convention on the Temporary Importation of Commercial Road Vehicles done at Geneva on May 18, 1956.
21. European Convention on Customs Treatment of Pallets used in International Transport done at Geneva on December 9, 1960.
22. Customs Convention Concerning Facilities for the Importation of Goods for Display or Use at Exhibitions, Fairs, Meetings or Similar Events
done at Brussels on June 8, 1961.
23. Customs Convention on the Temporary Importation of Professional Equipment done at Brussels on June 8, 1961.
24. Customs Convention on the 'ATA Carnet' for the Temporary Admission of Goods done at Brussels on December 6, 1961.
25. Convention on Temporary Admission done at Istanbul on June 26, 1990.
26. Customs Convention on Containers done at Geneva on December 2, 1972.
27. International Convention for Safe Containers done at Geneva on December 2, 1972.
D. Drugs
28. Single Convention on Narcotic Drugs done at New York on March 30, 1961; 1966 Amendments to Schedule I, 1967 Amendment to Schedule
III; and the 1972 Protocol amending the Convention done at Geneva on March 25, 1972.
29. United Nations Convention on Psychotropic Substances done at Vienna on February 21, 1971.
30. The 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances done at Vienna on December 20,
1988.
E. Economic and Financial
31. Convention on the Settlement of Investment Disputes between States and Nationals of Other States done at Washington on March 18, 1965.
F. Health
32. Agreement respecting Facilities to be given to Merchant Seamen for the Treatment of Venereal Diseases done at Brussels on December 1,
1924.
33. The International Health Regulations done at Boston on July 25, 1969.
429
430
APPENDICES
G. Human Rights
34. United Nations Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment done at New York on
December 10, 1984.
35. United Nations Convention on the Rights of the Child done at New York on November 20, 1989.
36. International Covenant on Economic, Social and Cultural Rights done at New York on December 16, 1966.*
37. International Covenants on Civil and Political Rights done at New York on December 16, 1966.*
38 International Agreement for the Suppression of the White Slave Traffic signed at Paris on May 18, 1904.
39. International Convention for the Suppression of the White Slave Traffic signed at Paris on May 4, 1910, and the Protocol amending the International Agreement for the Suppression of the White Slave Traffic, 1904, and the International Convention for the Suppression of the White Slave Traffic, 1910, done at Lake Success on May 4, 1949.
40. International Convention for the Suppression of the Traffic in Women and Children opened for signature at Geneva on September 30, 1921. 41. International Convention with the Object of Securing the Abolition of Slavery and the Slave Trade signed at Geneva on September 25, 1926,
and the Protocol amending the Slavery Convention done at New York on December 7, 1953.
42. Convention on the Political Rights of Women opened for signature at New York on March 31, 1953.
43. Convention relating to the Status of Stateless Persons done at New York on September 28, 1954.
44. Supplementary Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices similar to Slavery done at Geneva on
September 7, 1956.
45. Convention on Consent to Marriage, Minimum Age for Marriage and Registration of Marriages opened for signature at New York on
November 7, 1962.
46. International Convention on the Elimination of All Forms of Racial Discrimination opened for signature at New York on December 21, 1965. 47. Convention on the Elimination of All Forms of Discrimination Against Women concluded at New York on December 18, 1979.@
48. Convention on the Civil Aspects of International Child Abduction done at the Hague on October 25, 1980.@
H. Intellectual Property
49. Convention for the Protection of Industrial Property done at Paris on March 20, 1883 as amended on July 14, 1967.
50. Convention for the Protection of Literary and Artistic Works done at Berne on September 9, 1886 as amended on October 2, 1979, at Paris. 51. Universal Copyright Convention done at Geneva on September 6, 1952, and its Protocols, Geneva 1952, as amended on July 24, 1971, at
Paris.
52. Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms done at Geneva on
October 29, 1971.
53. Patent Co-operation Treaty done at Washington on June 19, 1970, as amended on September 28, 1979, and modified on February 3, 1984.
I. International Crime
54. Convention on the Prevention and Punishment of the Crime of Genocide done at Paris on December 9, 1948.
55. International Agreement for the Suppression of Obscene Publications done at Paris on May 4, 1910, and its Protocol done at Lake Success on
May 4, 1949.
56 International Convention for the Suppression of the Circulation of and Traffic in Obscene Publications done at Geneva on September 12,
1923, and Protocol done at Lake Success on November 12, 1947.
57. Convention on Offences and Certain Other Acts committed on Board Aircraft done at Tokyo on September 14, 1963.
58. Convention for the Suppression of Unlawful Seizure of Aircraft done at the Hague on December 16, 1970.
59. Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation done at Montreal on September 23, 1971.
60. Convention on the Prevention and Punishment of Crimes Against Internationally Protected Persons, including Diplomatic Agents done at
New York on December 14, 1973.
61. International Convention Against the Taking of Hostages done at New York on December 17, 1979.
62. Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation done at Rome on March 10, 1988, and Protocol for the Suppression of Unlawful Acts Against the Safety of Fixed Platforms located on the Continental Shelf done at Rome on March 10, 1988.
63. Montreal Protocol for the Suppression of Unlawful Acts of Violence at Airports serving International Civil Aviation done at Montreal on
February 24, 1988.
64. Convention on the Marking of Plastic Explosives for the Purpose of Detection, done at Montreal on March 1, 1991.
J. International Labour Conventions (46)
65. Unemployment Convention (ILC No. 2), Washington, November 28, 1919.
66. Maternity Protection Convention (ILC No. 3), Washington, November 28, 1919.
67. Minimum Age (Industry) Convention (ILC No. 5), Washington, November 28, 1919.
68. Minimum Age (Sea) Convention (ILC No. 7), Genoa, July 9, 1920.
69. Unemployment Indemnity (Shipwreck) Convention (ILC No. 8), Genoa, July 9, 1920.
70. Minimum Age (Trimmers and Stokers) Convention (ILC No. 15), Geneva, November 11, 1921.
71. Medical Examination of Young Persons (Sea) Convention (ILC No. 16), Geneva, November 11, 1921.
72. Right of Association (Agriculture) Convention (ILC No. 11), Geneva, November 12, 1921.
APPENDICES
73. Minimum Age (Agriculture) Convention (ILC No. 10), Geneva, November 16, 1921.
74. Weekly Rest (Industry) Convention (ILC No. 14), Geneva, November 17, 1921.
75. Workmen's Compensation (Agriculture) Convention (ILC No. 12), Geneva, November 12, 1921.
76. Equality of Treatment (Accident Compensation) Convention (ILC No. 19), Geneva, June 5, 1925.
77. Workmen's Compensation (Accidents) Convention (ILC No. 17), Geneva, June 10,1925.
78. Repatriation of Seamen Convention (ILC No. 23), Geneva, June 23, 1926.
79. Seamen's Articles of Agreement Convention (ILC No. 22), Geneva, June 24, 1926.
80. Forced Labour Convention (ILC No. 29), Geneva, June 28, 1930.
81. Protection against Accidents (Dockers) Convention (Revised) (ILC No. 32), Geneva, April 27, 1932.
82. Workmen's Compensation (Occupational Diseases) Convention (Revised) (ILC No. 42), Geneva, June 21, 1934, 83. Underground Work (Women) Convention (ILC No. 45), Geneva, June 21, 1935.
84. Recruiting of Indigenous Workers Convention (ILC No. 50), Geneva, June 20, 1936.
85. Minimum Age (Sea) Convention (Revised) (ILC No. 58), Geneva, October 24, 1936.
86. Minimum Age (Industry) Convention (Revised) (ILC No. 59), Geneva, June 22, 1937.
87. Contracts of Employment (Indigenous Workers) Convention (ILC No. 64), Geneva, June 27, 1939.
88. Penal Sanctions (Indigenous Workers) Convention (ILC No. 65), Geneva, June 27, 1939.
89. Certification of Able Seamen Convention (ILC No. 74), Seattle, June 29, 1946.
90. Labour Inspection Convention (ILC No. 81), Geneva, July 11, 1947.
91. Freedom of Association and Protection of the Right to Organise Convention (ILC No. 87), San Francisco, July 9, 1948. 92. Night Work of Young Persons (Industry) Convention (Revised) (ILC No. 90), San Francisco, July 10, 1948.
93. Accommodation of Crews Convention (Revised) (ILC No. 92), Geneva, June 18, 1949.
94. Migration for Employment Convention (Revised) (ILC No. 97), Geneva, July 1, 1949.
95. Right to Organise and Collective Bargaining Convention (ILC No. 98), Geneva, July 1, 1949.
96. Holidays with Pay (Agriculture) Convention (ILC No. 101), Geneva, June 26, 1952.
97. Abolition of Forced Labour Convention (ILC No. 105), Geneva, June 25, 1957,
98. Seafarers' Identity Documents Convention (ILC No. 108), Geneva, May 13, 1958.
99. Radiation Protection Convention (ILC No. 115), Geneva, June 22, 1960.
100. Employment Policy Convention (ILC No. 122), Geneva, July 9, 1964.
101. Medical Examination of Young Persons (Underground Work) Convention (ILC No. 124), Geneva, June 23, 1965. 102. Accommodation of Crews (Supplementary Provisions) Convention (ILC No. 133), Geneva, October 30, 1970,
103. Rural Workers' Organisations Convention (ILC No. 141), Geneva, June 23, 1975.
104. Human Resources Development Convention (ILC No. 142), Geneva, June 23, 1975.
105. Tripartite Consultation (International Labour Standards) Convention (ILC No. 144), Geneva, June 21, 1976.
106. Merchant Shipping (Minimum Standards) Convention (ILC No. 147), Geneva, October 29, 1976.
107. Working Environment (Air Pollution, Noise and Vibration) Convention (ILC No. 148), Geneva, June 20, 1977.
108. Labour Administration Convention (ILC No. 150), Geneva, June 26, 1978.
109. Labour Relations (Public Service) Convention (ILC No. 151), Geneva, June 27, 1978.
110. Labour Statistics Convention (ILC No. 160), Geneva, June 25, 1985.
K. Marine Pollution
111. International Convention Relating to Intervention on the High Seas in cases of Oil Pollution Casualties done at Brussels on November 29,
1969, and the Protocol done at London on November 2, 1973.
112. International Convention on Civil Liability for Oil Pollution Damage done at Brussels on November 29, 1969, and its Protocol done at
London on November 19, 1976.
113. International Convention on the establishment of an International Fund for Compensation for Oil Pollution Damage done at Brussels on
December 18, 1971, and the Protocol done at London on November 19, 1976.
114. Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter done at London on December 29, 1972; 1978 Amendments to Annexes I and II Concerning Incineration at Sea; 1978 Amendments Concerning Settlement of Disputes; 1980 Amendments to Annexes I and II Concerning Lists of Substances; and 1989 Amendments to Annex III.
115. International Convention for the Prevention of Pollution from Ships done at London on November 2, 1973; Protocol done at London on
February 17, 1978; and Annexes III and V to the Convention as modified by the Protocol of 1978.
L.
Merchant Shipping
116. International Convention for the Unification of Certain Rules of Law relating to Assistance and Salvage at Sea done at Brussels on September
23, 1910.
117. International Convention for the Unification of Certain Rules of Law respecting Collisions between Vessels done at Brussels on September 23,
1910.
118. Convention and Statute on Freedom of Transit done at Barcelona on April 20, 1921.
431
432
APPENDICES
119. Convention and Statute on the Regime of Navigable Waterways of International Concern done at Barcelona on April 20, 1921.
120. Declaration Recognising the Right to a Flag of States Having No Sea-coast done at Barcelona on April 20, 1921.
121. Convention and Statute on the International Regime of Maritime Ports done at Geneva on December 9, 1923.
122. International Convention for the Unification of Certain Rules of Law relating to Bills of Lading done at Brussels on August 25, 1924, and its
1968 and 1979 Protocols.
123. International Convention on Certain Rules concerning Civil Jurisdiction in Matters of Collision done at Brussels on May 10, 1952.
124. International Convention for the Unification of Certain Rules relating to Penal Jurisdiction in Matters of Collision or other Incidents of
Navigation done at Brussels on May 10, 1952.
125. International Convention relating to the Arrest of Sea-going Ships done at Brussels on May 10, 1952.
126. Convention on Facilitation of International Maritime Traffic done at London on April 9, 1965, as amended by the 1973, 1977 and 1986
Amendments.
127. International Convention on Load Lines done at London on April 5, 1966, as amended by the 1971, 1975 and 1979 Amendments. 128. International Convention on Tonnage Measurement of Ships done at London on June 23, 1969.
129. Special Trade Passenger Ships Agreement done at London on October 6, 1971, and its 1973 Protocol on Space Requirements for Special Trade
Passenger Ships.
130. Convention on the International Regulations for Preventing Collisions at Sea done at London on October 20, 1972, and the Amendment done
on November 19, 1981.
131. Convention on a Code of Conduct for Liner Conferences done at Geneva on April 6, 1974.
132. Convention relating to the Carriage of Passengers and their Luggage by Sea done at Athens on December 13, 1974, and its 1976 Protocol. 133. International Convention for the Safety of Life at Sea done at London on November 1, 1974 and its 1981, 1983 and 1988 Amendments; its
Protocol done on June 1, 1978 and the 1981 Amendments to the 1978 Protocol.
134. Convention on Limitation of Liability for Maritime Claims done at London on November 19, 1976.
135. International Convention on Standards of Training, Certification and Watchkeeping for Seafarers done at London on July 7, 1978, and the
1995 Amendments.
136. International Convention on Maritime Search and Rescue done at Hamburg on April 27, 1979.
137. International Convention on Salvage done at London on April 28, 1989.@
M. Political and Diplomatic
138. Charter of the United Nations done at San Francisco on June 26, 1945.
139. Statute of the International Court of Justice done at San Francisco on June 26, 1945.
140. (General) Convention on the Privileges and Immunities of the United Nations done at London on February 13, 1946.
141. Convention on the Privileges and Immunities of the Specialised Agencies of the United Nations done at New York on November 21, 1947. 142. Convention on Diplomatic Relations done at Vienna on April 18, 1961.
143. Convention on Consular Relations done at Vienna on April 24, 1963.
N. Postal
144. Postal Parcels Agreement with Final Protocol and Detailed Regulations with Final Protocol, Seoul 1994, and the Postal Operations Council
Session in Berne, February 1995.
145. Universal Postal Convention with Final Protocol and Detailed Regulations with Final Protocol, Seoul 1994, and the Postal Operations
Council Session in Berne, February 1995.
146. General Regulations of the Universal Postal Union and Annex, Seoul 1994.
O. Private International Law
147. Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on June 10, 1958.
148. Convention Abolishing the Requirement of Legalisation for Foreign Public Documents done at the Hague on October 5, 1961.
149. Convention on the Conflicts of Laws relating to the form of Testamentary Dispositions done at the Hague on October 5, 1961.
150. Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters done at the Hague on
November 15, 1965.
151. Convention on the Taking of Evidence Abroad in Civil or Commercial Matters done at the Hague on March 18, 1970.
152. Convention on the Recognition of Divorces and Legal Separations done at the Hague on June 1, 1970.
153. Convention on the Law Applicable to Trusts and on their Recognition done at the Hague on July 1, 1985.
P. Science and Technology
154. Convention on Third Party Liability in the Field of Nuclear Energy done at Paris on July 29, 1960, with its Additional Protocol done at Paris
on January 28, 1964, as amended by the 1982 Protocol.
155. Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and other Celestial
Bodies done at London/Moscow/Washington on January 27, 1967.
156. Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched into Outer Space done at London,
Moscow and Washington on April 22, 1968.
157. Convention on International Liability for Damage Caused by Space Objects done at London, Moscow and Washington on March 29, 1972. 158. Convention on Registration of Objects Launched into Outer Space done at New York on January 14, 1975.
APPENDICES
Q. Telecommunications
159. Convention for the Protection of Submarine Cables done at Paris on March 14, 1884, as amended by the Declaration on the Protection of
Submarine Cables done at Paris on December 1, 1886, and the Protocol on the Protection of Submarine Cables done at Paris on July 7, 1887. 160. International Agreement on the use of INMARSAT ship earth stations within the Territorial Sea and Ports done at London on October 16,
1985.
R. Trade
161. International Convention Relating to International Exhibitions, done at Paris on November 22, 1928, and its Protocols done at Paris on May
10, 1948, November 16, 1966, November 30, 1972, and amendments done on June 24, 1982.
S. Transport
162. Convention on Road Traffic done at Geneva on September 19, 1949.
T. Warfare and Disarmament
163. Convention for the Amelioration of the Condition of Wounded and Sick in Armed Forces in the Field done at Geneva on August 12, 1949. 164. Convention for the Amelioration of the Condition of Wounded, Sick and Ship-wrecked Members of Armed Forces at Sea done at Geneva on
August 12, 1949.
165. Convention on the Treatment of Prisoners of War done at Geneva on August 12, 1949.
166. Convention on the Protection of Civilian Persons in Time of War done at Geneva on August 12, 1949.
167. Treaty on the Non-proliferation of Nuclear Weapons done at London/Moscow/ Washington on July 1, 1968.
168. Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on
their Destruction done at London/Moscow/ Washington on April 10, 1972.
U. List of Other International Instruments Establishing International Organisations
1.
Asian Development Bank (ADB)
Agreement Establishing the Asian Development Bank done at Manila on December 4, 1965.
2. Asia-Pacific Postal Union (APPU)
Asia-Pacific Postal Convention done at Yogyakarta on March 27, 1981, and its Final Protocol.
3. Asia-Pacific Telecommunity (APT)
Constitution of the Asia-Pacific Telecommunity done at Bangkok on March 27, 1976.
4.
Customs Co-operation Council (CCC)
5.
Food and Agriculture Organisation (FAO)
International Convention Establishing a Customs Co-operation Council done at Brussels on December 15, 1950.
Constitution of the Food and Agriculture Organisation done at Quebec on October 16, 1945.
6.
General Agreement on Tariffs and Trade (GATT)/World Trade Organisation (WTO)
General Agreement on Tariffs and Trade done at Geneva on October 30, 1947.
Agreement Establishing the World Trade Organisation done at Marrakesh on December 15, 1993.
7.
International Atomic Energy Agency (IAEA)
Statute of the International Atomic Energy Agency done at New York on October 26, 1956.
8.
International Bank for Reconstruction and Development (IBRD)
Articles of Agreement of the International Bank for Reconstruction and Development done at Washington on December 27, 1945. International Development Association (IDA)
9.
Articles of Agreement of the International Development Association done at Washington on January 26, 1960.
10. International Finance Corporation (IFC)
Articles of Agreement of the International Finance Corporation done at Washington on May 25, 1955.
11. International Hydrographic Organisation (IHO)
Convention on the International Hydrographic Organisation done at Monaco on May 3, 1967.
12. International Labour Organisation (ILO)
Constitution of the International Labour Organisation done at Versailles on June 28, 1919.
13. International Maritime Organisation (IMO)
Convention on the International Maritime Organisation done at Geneva on March 6, 1948.
14. International Mobile Satellite Organisation (Inmarsat)
Convention on the International Maritime Satellite Organisation done at London on September 3, 1976.
15. International Monetary Fund (IMF)
Articles of Agreement of the International Monetary Fund done at Washington on December 27, 1945. 16. International Telecommunications Satellite Organisation (INTELSAT)
Agreement relating to the International Telecommunications Satellite Organisation (INTELSAT) done at Washington on August 20, 1971. 17. International Telecommunication Union (ITU)
Constitution and Convention of the International Telecommunication Union done at Geneva on December 22, 1992, and at Kyoto in 1994.
433
434
APPENDICES
18. Multilateral Investment Guarantee Agency (MIGA)
Convention Establishing the Multilateral Investment Guarantee Agency done at Seoul on October 11, 1985.
19. Network of Aquaculture Centres in Asia and the Pacific (NACA)
Agreement on the Network of Aquaculture Centres in Asia and the Pacific done at Bangkok on January 8, 1988.
20. Universal Postal Union (UPU)
Constitution of the Universal Postal Union, Vienna, 1964, as amended by the 1969 Tokyo, 1974 Lausanne, 1984 Hamburg, 1989 Washington and 1994 Seoul Additional Protocols.
21. World Health Organisation (WHO)
Constitution of the World Health Organisation done at New York on July 22, 1946.
22. World Intellectual Property Organisation (WIPO)
Convention Establishing the World Intellectual Property Organisation done at Stockholm on July 14, 1967, as amended in 1979.
23. World Meteorological Organisation (WMO)
Constitution of the World Meteorological Organisation done at Washington on October 11, 1947.
* The continued application of the provisions of these two covenants to the HKSAR after June 30, 1997, is covered by JD156/BL39. @To be extended to Hong Kong by the UK on or before June 30, 1997, and their continued application thereafter has been agreed in the JLG.
APPENDICES
APPENDIX 6
(Chapter 5: The Economy)
Gross Domestic Product by Expenditure Component
at Current Market Prices
Expenditure Components of GDP
1994
1995 *
$ Million
1996 *
Private consumption expenditure Government consumption expenditure
592,665 (15.3)
652,875 (10.2)
718,779 (10.1)
83,658 (15.2)
95,283 (13.9)
106,083 (11.3)
Gross domestic fixed capital formation
Changes in inventories
301,112 (22.8)
21,263
326,184 (8.3)
365,493 (12.1)
Total exports of goods (f.o.b.)
1,170,013 (11.8)
48,461 1,344,127 (14.9)
Less imports of goods (c.i.f.) Exports of services
1,254,427 (16.6)
1,495,706 (19.2)
16,871 1,397,918 (4.0) 1,539,851 (3.0)
240,668 (11.6)
279,280 (16.0)
302,861 (8.4)
Less imports of services
144,067 (17.1)
165,934 (15.2)
172,839 (4.2)
GDP (expenditure-based estimate)
at current market prices
1,010,885 (12.6)
1,084,570 (7.3)
1,195,315 (10.2)
Per capita GDP at current market prices ($)
167,493 (10.1)
176,178 (5.2)
189,402 (7.5)
Gross Domestic Product by Expenditure Component
at Constant (1990) Market Prices
1994
1995 *
$ Million
1996 *
Expenditure Components of GDP
Private consumption expenditure
443,571 (6.7)
447,229 (0.8)
467,091 (4.4)
Government consumption expenditure
56,057 (3.9)
Gross domestic fixed capital formation
Changes in inventories
220,171 (15.7)
20,058
Total exports of goods (f.o.b.)
1,127,276 (10.4)
Less imports of goods (c.i.f.) Exports of services
1,206,013 (14.0)
58,500 (4.4) 241,410 (9.6)
43,635 1,262,522 (12.0) 1,371,848 (13.8)
61,170 (4.6)
268,148 (11.1)
18,444 1,322,954 (4.8) 1,430,864 (4.3)
189,602 (6.5)
210,962 (11.3)
224,061 (6.2)
Less imports of services
123,216 (8.8)
130,403 (5.8)
132,973 (2.0)
GDP (expenditure-based estimate)
at constant (1990) market prices
727,506 (5.4)
762,007 (4.7)
798,031 (4.7)
Per capita GDP at constant (1990)
market prices ($)
120,540 (3.1)
123,781 (2.7)
126,451 (2.2)
Notes: Figures in brackets refer to percentage changes over the preceding year.
* The estimates are subject to revisions later on as more data become available.
Source: Census and Statistics Department.
435
APPENDICES
Gross Domestic Product at Current Prices by Economic Activity
1993
1994
1995*
%
%
%
distribu-
distribu-
distribu-
Economic Activity
$ Million
tion
$ Million
tion
$ Million
tion
Agriculture and fishing
1,612
0.2
1,596
0.2
1,453
0.1
Industry
153,459
18.5
156,103
16.4
163,302
16.0
Mining and quarrying
197
249
+
268
+
Manufacturing
92,582
11.2
87,354
9.2
89,719
8.8
Electricity, gas and water
17,591
2.1
22,175
2.3
23,562
2.3
Construction
43,089
5.2 46,325
4.9
49,753
4.9
Services
675,098
81.3
792,472
83.4
853,648
83.8
Wholesale, retail and import/export
trades, restaurants and hotels
224,462
27.0 249,167
26.2
278,581
27.4
Transport, storage and communications
78,993
9.5
92,109
9.7
100,129
9.8
Financing, insurance, real estate and
business services
214,550
25.8
254,346
26.8
253,492
24.9
Community, social and personal services
130,408
15.7
151,293
15.9
174,448
17.1
Ownership of premises
89,862
10.8
115,659
12.2
128,864
12.7
Adjustment for charges of financial
intermediation services
indirectly measured
-63,177
-7.6
-70,101
-7.4
-81,866
-8.0
Gross Domestic Product at factor cost
(production-based estimates)
830,169
Taxes on production and imports
53,278
100.0 950,172 100.0 1,018,403
56,286
100.0
52,971
Gross Domestic Product at market prices
(production-based estimates)
883,447
1,006,458
1,071,374
Gross Domestic Product at market prices
(expenditure-based estimates)
897,463
1,010,885
1,084,570
Statistical discrepancy
-1.6%
-0.4%
-1.2%
Notes: *
Preliminary estimates.
Source:
† Less than 0.05.
Census and Statistics Department.
Gross National Product
GNP at current market prices
Per capita GNP at current market prices ($)
GNP at constant (1990) market prices
Per capita GNP at constant (1990) market prices ($)
$ Million
1993
1994
907,808
1,018,225
153,840
168,709
698,432
732,943
118,358
121,441
Note: GNP is derived from GDP by (a) adding total income earned by Hong Kong residents from outside Hong Kong and (b) subtracting total
income earned by non-Hong Kong residents from within Hong Kong.
436
Source: Census and Statistics Department.
►
APPENDICES
APPENDIX 7
(Chapter 5: The Economy)
1994/95-based Consumer Price Index (A) (Oct. 1994-Sep. 1995 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1996
1996
All items
100.00
107.9
6.0
Food
37.30
105.6
4.0
Meals bought away from home
(20.43)
106.0
4.2
Food, excluding meals bought
away from home
(16.87)
105.2
3.7
Housing
25.34
112.2
9.3
Fuel and light
3.37
106.8
5.2
Alcoholic drinks and tobacco
2.06
107.3
5.8
Clothing and footwear
5.12
111.5
9.5
Durable goods
4.34
102.7
1.8
Miscellaneous goods
6.03
103.4
2.5
Transport
7.17
108.2
6.3
Miscellaneous services
9.27
109.0
6.9
Note: The CPI(A) covers about 50% of households with a monthly expenditure of between $4,000 and $15,999 in the base period 1994/95.
1994/95-based Consumer Price Index (B)
(Oct. 1994-Sep. 1995 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1996
1996
All items
100.00
108.4
6.4
Food
29.37
105.6
4.0
Meals bought away from home
(18.99)
105.6
3.9
Food, excluding meals bought
away from home
(10.38)
105.5
4.0
Housing
28.18
113.0
9.8
Fuel and light
2.16
106.6
5.1
Alcoholic drinks and tobacco
1.18
107.5
5.9
Clothing and footwear
6.95
112.4
10.3
Durable goods
5.85
102.7
1.8
Miscellaneous goods
6.44
103.7
2.8
Transport
7.57
108.1
6.2
Miscellaneous services
12.30
108.3
6.5
Note: The CPI(B) covers about 30% of households with a monthly expenditure of between $16,000 and $29,999 in the base period 1994/95.
437
438
APPENDICES
1994/95-based Hang Seng Consumer Price Index
(Oct. 1994-Sep. 1995 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1996
1996
All items
100.00
108.7
6.6
Food
20.38
104.8
3.5
Meals bought away from home
(14.15)
104.4
3.2
Food, excluding meals bought
away from home
(6.23)
105.7
4.0
Housing
34.00
114.8
11.2
Fuel and light
1.50
107.2
5.9
Alcoholic drinks and tobacco
0.77
106.8
5.4
Clothing and footwear
8.04
106.3
4.6
Durable goods
6.31
103.1
2.1
Miscellaneous goods
5.79
103.4
2.5
Transport
8.79
107.6
6.0
Miscellaneous services
14.42
106.4
5.0
Note: The Hang Seng CPI covers about 10% of households with a monthly expenditure of between $30,000 and $59,999 in the base period 1994/95.
1994/95-based Composite Consumer Price Index
(Oct. 1994-Sep. 1995 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1996
1996
All items
100.00
108.3
6.3
Food
29.50
105.5
3.9
Meals bought away from home
(18.16)
105.6
3.9
Food, excluding meals bought
away from home
(11.34)
105.4
3.9
Housing
28.83
113.3
10.1
Fuel and light
2.36
106.8
5.3
Alcoholic drinks and tobacco
1.35
107.3
5.7
Clothing and footwear
6.66
110.2
8.3
Durable goods
5.49
102.8
1.9
Miscellaneous goods
6.14
103.5
2.7
Transport
7.77
108.0
6.2
Miscellaneous services
11.90
107.9
6.1
Note: The Composite CPI covers all households of the CPI(A), CPI(B) and the Hang Seng CPI.
APPENDICES
1989/90-based Consumer Price Index (A)
(Oct. 1989-Sep. 1990 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1994
1995
1994
1995
All items
100.00
146.9
159.7
8.1
8.7
Food
41.20
141.6
151.8
6.4
7.2
Meals bought away from home
(20.52)
151.6
162.3
7.8
7.1
Food, excluding meals bought
away from home
(20.68)
131.6
141.2
4.8
7.3
Housing
20.56
164.9
185.0
11.2
12.2
Fuel and light
3.18
124.3
133.7
3.4
7.6
Alcoholic drinks and tobacco
2.45
186.1
197.8
5.6
6.3
Clothing and footwear
4.56
137.7
149.6
8.8
8.6
Durable goods
4.92
112.4
117.1
2.8
4.2
Miscellaneous goods
5.88
132.3
141.1
6.8
6.6
Transport
7.20
147.4
158.4
9.3
7.5
Miscellaneous services
10.05
158.8
176.9
11.8
11.4
Note: The CPI(A) covers about 50% of households with a monthly expenditure of between $2,500 and $9,999 in the base period 1989/90.
1989/90-based Consumer Price Index (B)
(Oct. 1989-Sep. 1990 = 100)
Annual average
Annual rate of increase (%)
Section
Weight
1994
1995
1994
1995
All items
100.00
147.7
161.3
8.6
9.2
Food
35.34
143.2
153.4
6.6
7.1
Meals bought away from home
(20.51)
151.3
161.8
7.7
6.9
Food, excluding meals bought
away from home
(14.83)
132.0
141.8
4.9
7.4
Housing
23.77
167.2
189.5
12.1
13.4
Fuel and light
2.36
123.7
133.2
3.5
7.8
Alcoholic drinks and tobacco
1.64
176.6
187.1
6.1
5.9
Clothing and footwear
7.23
139.4
152.3
9.2
9.3
Durable goods
5.12
112.1
116.9
3.0
4.3
Miscellaneous goods
5.89
129.0
136.9
5.9
6.1
Transport
7.57
146.4
157.6
9.1
7.7
Miscellaneous services
11.08
153.6
170.0
10.8
10.6
Note: The CPI(B) covers about 30% of households with a monthly expenditure of between $10,000 and $17,499 in the base period 1989/90.
439
440
APPENDICES
1989/90-based Hang Seng Consumer Price Index
(Oct. 1989-Sep. 1990 = 100)
Annual average
Annual-rate of increase (%)
Section
Weight
1994
1995
1994
1995
All items
100.00
150.7
165.1
10.0
9.6
Food
25.95
145.3
155.4
8.3
6.9
Meals bought away from home
(16.37)
152.3
162.4
10.1
6.7
Food, excluding meals bought
away from home
(9.58)
133.3
143.2
4.9
7.4
Housing
29.48
172.4
195.9
14.6
13.6
Fuel and lightn
1.76
124.0
132.0
3.8
6.4
Alcoholic drinks and tobacco
0.88
172.0
181.9
6.1
5.8
Clothing and footwear
8.81
149.0
164.7
9.1
10.5
Durable goods
5.86
117.4
122.4
2.9
4.3
Miscellaneous goods
5.64
127.3
135.1
5.5
6.1
Transport
7.89
145.6
156.0
8.3
7.1
Miscellaneous services
13.73
144.5
156.9
9.2
8.5
Section
Weight
All items
100.00
Food
35.07
Meals bought away from home
(19.45)
Food, excluding meals bought
away from home
(15.62)
Note: The Hang Seng CPI covers about 10% of households with a monthly expenditure of between $17,500 and $37,499 in the base period 1989/90.
1989/90-based Composite Consumer Price Index
(Oct. 1989-Sep. 1990 = 100)
KONGY
Annual average
Annual rate of increase (%)
1994
1995
1994
1995
148.2
161.7
8.8
9.1
142.9
153.1
6.8
7.1
• 151.7
162.2
8.2
6.9
132.0
141.8
4.8
7.4
Housing
24.06
168.1
190.1
12.6
13.1
Fuel and light
2.51
124.0
133.2
3.5
7.4
Alcoholic drinks and tobacco
1.74
180.8
191.7
5.8
6.1
Clothing and footwear
6.66
142.2
155.9
9.0
9.6
Durable goods
5.24
113.8
118.6
2.9
4.2
Miscellaneous goods
5.82
129.8
137.9
6.2
6.3
Transport
7.52
146.5
157.4
8.9
7.4
Miscellaneous services
11.38
152.5
168.2
10.7
10.3
Note: The Composite CPI covers all households of the CPI(A), CPI(B) and the Hang Seng CPI.
Source: Census and Statistics Department.
APPENDIX 8
(Chapter 5: The Economy)
Public Expenditure by Function
Item
APPENDICES
$ Million
Actual 1994-95
Actual 1995-96
Revised Estimate 1996-97
Recurrent
Capital
Total
Recurrent
Capital
Total
Recurrent Capital Total
6,380
994
7,374
6,734
1,973
8,707
7,891
2,651
10,542
Economic
Security
Internal security
14,661
755
15,416
15,635
2,155
17.790
17,179
2,804
19,983
Immigration
1,455
62
1,517
1,604
115
1,719
1,827
54
1,881
Other
2,021
21
2,042
2,262
93
2,355
2,712
157
2,869
Sub-total
18,137
838
18,975
19,501
2,363
21,864
21,718
3,015
24,733
Social welfare
10,458
490 10,948
13,196
951
14,147
16,748
1,479
18,227
Health
17,027
2,295 19,322
19,963
4,322
24,285
22,740
2,311
25,051
Education
26,186
2,692 28,878
30,316
3,294
33,610
34,350
4,813
39,163
Environment
1,748
2,653
4,401
2,156
3,470
5,626
2,539
4,011
6,550
Community and External Affairs
Recreation, culture and amenities
6,289
1,635
7,924
7,116
2,004
9,120
8,307
2,825
11,132
District and community relations
872
19
891
973
2
20
993
1,184
153
1,337
Other
402
12
414
450
21
471
525
22
547
Sub-total
7,563
1,666
9,229
8,539
2,045
10,584
10,016
3,000
13,016
Infrastructure
Transport
1,574
9,108
10,682
1,796
8,408
10,204
2,079
6,999 9,078
Buildings, lands and planning
2,261
8,312 10,573
2,568
8,219
10,787
2,885
6,168
9,053
Water supply
3,137
1,839
4,976
3,711
2,143
5,854
4,171
1,878
6,049
Sub-total
6,972
19,259
26,231
8,075
18,770
26,845
9,135
15,045 24,180
Support
Housing
Total
119,920
17,635 3,256 20,891
7,814 11,887 19,701
46,030 165,950
20,244 6,357 26,601
9,969 9,100 19,069
22,914 6,973 29,887
11,694 14,151 25,845
138,693
52,645 191,338
159,745 57,449 217,194
Note: Where appropriate, historical figures have been adjusted to comply with the current classification of expenditure.
Source: Finance Branch, Government Secretariat.
441
442
APPENDIX 9
(Chapter 5: The Economy)
Public Expenditure by Function
APPENDICES
$Million
230,000
220,000
210,000
共
$24,733
11%
Security
200,000
190,000
180,000
$21,864 11%
$25,051 12%
Health
170,000
$24,285
160,000
$18,975
13%
11%
150,000
$25,845 12%
Housing
140,000
$19,322
12%
$19,069 10%
130,000
$29,887
120,000
$19,701
12%
110,000
100,000
$20,891
13%
90,000
$33,610
$26,601 14%
14%
LB CALE
MIES
Support
$39,163 18%
Education
80,000
18%
$28,878
70,000
17%
60,000
50,000
40,000
$72,515 33%
Other Expenditure
30,000
$58,183
35%
$65,909 34%
20,000
10,000
Actual 1994-95
Actual
1995-96
Revised estimate 1996-97
APPENDICES
APPENDIX 10
(Chapter 5: The Economy)
Government Expenditure and the Economy
$ Million
Revised
Actual
Actual
Actual
Actual
Estimate
1992-93
1993-94
1994-95
1995-96
1996-97
Government Expenditure (see Appendix 11)
Operating Expenditure
85,024
96,958
106,620
121,903
139,388
Less grant to Lotteries Fund
(2,300)
82,724
96,958
106,620
121,903
139,388
Capital Expenditure
Less debt repayment
22,247
38,246
38,950
39,730
38,334
(1,200)
(2,400)
22,247
37,046
36,550
39,730
38,334
Total Government Expenditure
104,971
134,004
143,170
161,633
177,722
Add other public sector bodies
18,522
21,203
22,780
29,705
39,471
Total Public Expenditure
. (1)
123,493
155,207
165,950
191,338
217,193
Gross Domestic Product (GDP) at
current market prices (calendar year)
779,335
897,463
1,010,885
1,084,570*
1,195,315*
Growth in GDP:
Nominal terms
16.6%
15.2%
12.6%
7.3%
*
10.2%*
Real terms
6.3%
6.1%
5.4%
4.7%*
4.7%*
Growth in Public Expenditure:
Nominal terms
13.9%
25.7%
6.9%
15.3%
13.5%
Real terms
3.2%
15.5%
-2.2%
6.2%
6.0%
Public Expenditure as percentage of GDP
15.8%
17.3%
16.4%
17.6%*
18.2%*
Notes: (1) The public expenditure comprises expenditure by the trading funds, the Housing Authority, the Urban Council and the Regional Council, and expenditure financed by the Government's statutory funds and all expenditure charged to the General Revenue Account. Expenditure by institutions in the private or quasi-private sector is included to the extent of their subventions. The payments of government departments which are wholly or partly financed by charges raised on a commercial basis are also included (e.g. airport, waterworks). But not included is expenditure by those organisations, including statutory organisations, in which the Government has only an equity position, such as the Mass Transit Railway Corporation and the Kowloon-Canton Railway Corporation. Similarly, equity payments are excluded as they do not reflect the actual consumption of resources by the Government.
The estimates are subject to revisions later on as more data become available.
Source: Finance Branch, Government Secretariat.
443
444
APPENDICES
APPENDIX 11
(Chapter 5: The Economy)
Total Government Revenue and Expenditure and Summary of Financial Position
$ Million
Revenue
Revised
Actual 1994-95
Actual
Estimate
1995-96
1996-97
Operating Revenue
Direct taxes
Earnings and profits tax (1)
Indirect taxes
Duties
共生
74,295
77,419
82,050
7,583
7,899
8,334
General rates
5,156
5,806
6,295
Internal revenues (2)
23,202
23,491
30,649
Motor vehicle taxes
4,662
2,880
3,162
Royalties and concessions
1,653
1,773
1,768
Other revenue
Fines, forfeitures and penalties
Properties and investments
Reimbursements and contributions
Utilities-
Airport and air services
Ferry terminals
1,520
1,607
1,617
2,103
2,488
2,809
4,048
4,597
5,311
3,046
3,482
3,875
299
299
305
Postal services
2,739
1,040
94
Tunnels
Water
2,308
2,378
2,475
Fees and charges
9,562
9,879
10,756
Interest
4,942
5,910
5,643
Total Operating Revenue
147,118
150,948
165,143
Capital Revenue
Direct taxes
Estate duty
Indirect taxes
1,459
1,277
1,400
Taxi concessions
633
Other revenue
Land transactions
393
418
448
Miscellaneous
1,449
551
959
Funds
Capital Works Reserve Fund (Land sales and interest)
20,193
22,478
29,037
Capital Investment Fund
2,799
2,681
3,087
Civil Service Pension Reserve Fund
384
502
Disaster Relief Fund
I
2
Loan Fund
953
1,306
1,699
27,880
29,097
37,133
Total Capital Revenue
Net borrowing
Total Government Revenue
174,998
180,045
202,276
APPENDICES
Expenditure
$ Million
Actual
Actual
Revised Estimate
1994-95
1995-96
1996-97
Operating Expenditure
Recurrent expenditure
Personal emoluments
32,077
34,832
37,860
Personnel related expenses
3,579
3,811
4,192
Pensions
6,256
7,493
9,204
Departmental expenses
5,568
6,199
7,473
Other charges
15,633
17,928
21,598
Subventions-
Education
13,859
15,632
17,370
Medical
15,546
18,370
20,953
Social welfare
2,274
2,738
3,289
University and Polytechnic
8,050
9,385
10,835
Vocational Training Council
1,279
1,497
1,706
Miscellaneous
1,901
2,399
2,589
Other non-recurrent
598
1,619
2,319
Total Operating Expenditure
106,620
121,903
139,388
Capital Expenditure
General Revenue Account
Plant, equipment and works
545
581
795
Capital subventions
995
838
1,298
Funds
Capital Works Reserve Fund (3)
30,560
33,387
30,359
Disaster Relief Fund
32
49
18
Loan Fund
6,818
4,875
5,864
Total Capital Expenditure
38,950
39,730
38,334
Total Government Expenditure (3)
145,570
161,633
177,722
Equity Investments (Capital Investment Fund)
18,585
21,525
9,442
Total Government Expenditure and Equity Investments (3)
164,155
183,158
187,164
445
446
APPENDICES
$ Million
Summary of Financial Position
Revised
Actual
Actual
Estimate
1994-95
1995-96
1996-97
Total Government Revenue
174,998
180,045
202,276
Less total Government Expenditure and
Equity Investments
164,155
183,158
187,164
Consolidated cash surplus/(deficit)
Reserve balance at 1 April
共区
10,843
(3,113)
15,112
140,197
151,040
147,927
Reserve balance at 31 March
151,040
147,927
163,039
Notes: (1) Include salaries tax, property tax and personal assessment tax.
(2) Include bets and sweeps tax, hotel accomodation tax, air passenger departure tax, Cross Harbour Tunnel passage tax and stamp duties. (3) Include the repayment of Government bonds in 1994-95.
Source: Finance Branch, Government Secretariat.
BLIC LIBRA
+
f
זייף,,
4
APPENDICES
APPENDIX 12
(Chapter 5: The Economy)
Total Government Revenue by Source
$Million
210,000
200,000
190,000
180,000
$50,208 25%
Indirect Tax
170,000
160,000
$41,849 23%
$42,889
25%
150,000
140,000
130,000
120,000
Direct Tax
110,000
$83,450 41%
100,000
$78,696 44 %
90,000
$75,754 43 %
80,000
70,000
60,000
50,000
40,000
$59,500 33%
$68,618 34%
Other Revenue
$56,355
30,000 32%
20,000
10,000
0
Actual 1994-95
Actual 1995-96
Revised estimate
1996-97
447
448
APPENDIX 13
(Chapter 5: The Economy)
Major Sources of Revenue (1995-96)
APPENDICES
Profits Tax 26%
Salaries Tax 15%
#
Ku
Other Revenue*
14%
Rates
3% Utilities
4%
Duties 4%
་་
2
Land Sales 11%
Stamp Duty 6%
Fees & Charges
6%
Betting Duty
6%
Properties & Investment
5%
*Other Revenue includes:-
1. Loans, Reimbursements and Others
2. Capital Works Reserve Fund (excluding land premium transferred from Suspense Account) Motor Vehicle First Registration Tax
3.
4.
Personal Assessment
5.
Capital Investment Fund
6.
Royalties and Concessions
7.
Property Tax
8. Fines, Forfeitures and Penalties
9. Loan Fund
10. Estate Duty
11. Air Passenger Departure Tax
12. Hotel Accommodation Tax
13. Civil Service Pension Reserve Fund 14. Cross-Harbour Tunnel Passage Tax 15. Disaster Relief Fund
..
5
APPENDICES
APPENDIX 14
(Chapter 6: Financial and Monetary Affairs)
Statement of Licensed Banks' Liabilities and Assets
$ Million
As at end of year
1994
1995
1996
Liabilities
Amount due to authorized institutions in Hong Kong
543,010
$52,079
Amount due to banks abroad
3,992,219
4,161,120
568,451
3,838,497
Deposits from customers
1,884,331
2,153,009
2,374,887
Negotiable certificates of deposit (NCD) outstanding
73,752
99.063
148,284
Other liabilities
395,405
410,438
501,329
Total liabilities
6,888,717
7,375,709
7,431,448
Assets
Notes and coins
12,239
12,173
Amount due from authorized institutions in Hong Kong
667,093
680,512
12,592
726,648
Amount due from banks abroad
2,544,713
2,436,674
2,129,195
Negotiable certificates of deposit (NCD) held
42,310
79,503
Loans and advances to customers
3,101,237
3,552,880
81,351
3,706,286
Other assets
521,125
613,967
775,376
Total assets
6,888,717
7,375,709
7,431,448
Statement of Restricted Licence Banks' Liabilities and Assets
$ Million
As at end of year
1994
1995
1996
Liabilities
Amount due to authorized institutions in Hong Kong
92,003
101,013
115,164
Amount due to banks abroad
63,098
66,445
71,165
Deposits from customers
37,476
38,125
42,897
Negotiable certificates of deposit (NCD) outstanding
24,015
29,491
27,225
Other liabilities
46,825
45,891
48,812
Total Habilities
263,417
280,965
305,263
Assets
Notes and coins
2
2
2
Amount due from authorized institutions in Hong Kong
21,575
20,749
19,679
Amount due from banks abroad
73,937
78,743
75,106
Negotiable certificates of deposit (NCD) held
10,615
13,172
16,970
Loans and advances to customers
98,212
113,598
128,575
Other assets
59,076
54,701
64,931
Total assets
263,417
280,965
305,263
449
450
APPENDICES
Statement of Deposit-taking Companies' Liabilities and Assets
$ Million
As at end of year
1994
1995
1996
Liabilities
Amount due to authorized institutions in Hong Kong
76,436
83,249
82,746
Amount due to banks abroad
22,887
35,777
26,735
Deposits from customers
19,888
18,356
15,547
Negotiable certificates of deposit (NCD) outstanding
2,464
3,480
4,037
Other liabilities
46,773
41,684
40,196
Total liabilities
168,448
182,546
169,261
Assets
Notes and coins
21
27
17
Amount due from authorized institutions in Hong Kong
24,802
34,498
24,158
Amount due from banks abroad
18,740
18,349
13,442
Negotiable certificates of deposit (NCD) held
5,654
7,910
8,392
Loans and advances to customers
65,101
72,080
78,397
Other assets
Total assets
54,130
49,682
44,855
168,448
182,546
169,261
Note: Figures are subject to revisions.
Source: Hong Kong Monetary Authority.
APPENDICES
APPENDIX 15
(Chapter 6: Financial and Monetary Affairs) Exchange Value of the Hong Kong Dollar
(A) Historical changes in the exchange rate system
Par value of
the HK$ in
grams of
£1=
US$I=
SDRI=
fine gold
HKS
HK$
HK$
18 December 1946
IMF parities established; Hong Kong dollar was pegged to sterling 0.223834
16.00
3.970
18 September 1949
Hong Kong dollar devalued pari passu with sterling by 30.5%
20 November 1967
0.155517
16.00
5.714
Hong Kong dollar devalued pari passu with sterling by 14.3%
23 November 1967
0.133300
16.00
6.667
Hong Kong dollar revalued by 10%, including against sterling but continues pegged to sterling, at new rate
0.146631
14.55
6.061
18 December 1971
As part of the general currency realignment, Hong Kong dollar and sterling appreciated by 8.57% against US dollar. As a result of USA terminating, in August 1971, the convertibility of US dollar into gold, gold par value no longer had a practical meaning. IMF began to adopt the SDR as its accounting unit 6 July 1972
Hong Kong dollar pegged to US dollar following the floating of sterling
14 February 1973
US dollar devalued; Hong Kong dollar remains pegged,
at new rate
26 November 1974
Hong Kong dollar allowed to float, ie the government no longer undertook to maintain a particular rate against any other currency
17 October 1983
Hong Kong dollar was linked to US dollar, through a new arrangement in the note-issue mechanism, at a fixed exchange rate of HK$7.80=US$1
14.55
5.582
6.061
5.650
6.134
5.085
6.134
(B) Exchange rates of the Hong Kong dollar against selected major currencies
£
US$
DM
¥
SDR
Effective exchange rate index(1)
(Nov. 1983 = 100)
End of period
(HK dollars to one unit of foreign currency)
1974
11.53
4.910
2.03
0.0164
6.012
N.A.
1991
14.53
7.781
5.13
0.0622
11.130
108.4
1992
11.77
7.741
4.80
0.0623
10.644
113.2
1993
11.45
7.726
4.46
0.0690
10.612
113.8
1994
12.11
7.738
4.99
0.0775
11.298
123.5
1995
11.97
7.732
5.38
0.0750
11.495
122.7
1996
13.07
7.736
4.97
0.0666
11.124
125.3
Note: (1) The effective exchange rate index is derived from the weighted average of nominal exchange rates of the Hong Kong dollar against the
currencies of 17 major trading partners of Hong Kong.
Source: Hong Kong Monetary Authority.
451
APPENDICES
APPENDIX 16
(Chapter 6: Financial and Monetary Affairs)
Money Supply (1)
$ Million
As at end of year
1994
1995
1996
Money Supply (definition 1)
HK$
167,922
171,642
198,690
Foreign Currency
17,412
18,830
19,149
Total
185,334
190,471
217,840
Money Supply (definition 2)
HK$ (2)
1,094,715
1,260,427
1,503,728
Foreign Currency (3)
893,760
1,005,674
1,003,564
Total
1,988,475
2,266,101
2,507,292
Money Supply (definition 3)
HK$ (2)
1,112,146
1,278,288
1,520,586
Foreign Currency (3)
954,808
1,068,927
1,066,107
Total
2,066,954
2,347,215
2,586,692
%
Growth rate during the year
1994
1995
1996
Money Supply (definition 1)
HK$
-0.3
2.2
15.8
Foreign Currency
-9.2
8.1
1.7
Overall
-1.2
2.8
14.4
Money Supply (definition 2)
HK$ (2)
18.7
15.1
19.3
Foreign Currency (3)
6.6
12.5
-0.2
Overall
12.9
14.0
10.6
Money Supply (definition 3)
HK$ (2)
Foreign Currency (3)
18.4
14.9
19.0
8.5
12.0
-0.3
Overall
13.6
13.6
10.2
Notes: (1) Figures are subject to revisions.
452
(2) Figures are adjusted to include foreign currency swap deposits. (3) Figures are adjusted to exclude foreign currency swap deposits. Source: Hong Kong Monetary Authority.
I
APPENDICES
APPENDIX 17
(Chapter 6: Financial and Monetary Affairs)
Exchange Fund Balance Sheet
$ Million
As at end of year
Note
1990
1991
1992
1993 *
1994 t
1995
Assets
Foreign Currency Assets
192,323
Hong Kong Dollar Assets
1
3,874
225,333 10,788
274,948
12,546
335,499 12,987
381,233 24,617
428,547
32,187
196,197
236,121
287,494
348,486
405,850
460,734
Liabilities
Certificates of Indebtedness
2
40,791
46,410
58,130
68,801
74,301
77,600
Fiscal Reserves Account
3
63,226
69,802
96,145
115,683
131,240
125,916
Coins in Circulation
2,003
2,299
2,559
2,604
3,372
3,597
Exchange Fund Bills and Notes
6,671
13,624
19,324
25,157
46,140
53,311
Other Liabilities
4
391
4,834
3,220
7,314
22,815
38,414
Balance of Banking System
5
480
500
1,480
1,385
2,208
1,762
113,562
137,469
180,858
220,944
280,076
300,600
Accumulated Earnings
82,635
98,652
106,636
127,542
125,774
160,134
NOTES ON THE ACCOUNTS
1.
(a) Investments
2.
The Fund is invested in interest-bearing deposits with banks in Hong Kong and overseas and in a variety of financial instruments, including bonds, notes, treasury bills and US equities.
(b) Foreign currency assets distribution
A large proportion of the Fund's foreign currency assets is held in US dollars. Apart from the US dollar, the Fund also holds assets denominated in other foreign currencies, including the Australian dollar, Belgian franc, Canadian dollar, Danish krone, Deutschemark, Dutch guilder, the ECU, French franc, Japanese yen, pound sterling, Swiss franc.
(c) Location of assets
The assets are held in deposit, trustee and safe-keeping accounts with banks, central banks and custodial organizations situated in Hong Kong and other major financial centres.
(d) Valuation of assets and liabilities
In order to give a more appropriate presentation of the results and financial position of the Exchange Fund, the accounting policy with respect to the valuation of assets and liabilities has been changed in accordance with the recommendation of the International Accounting Standards Committee Exposure Draft E48. For 1992 and prior years, all assets were shown at market value, with the exception of fixed deposits, which were shown at cost. All liabilities were shown at their face amount, with the exception of Exchange Fund Bills and Notes, which were shown at discounted or amortized value. From 1993 onwards, all assets of Exchange Fund, and its liabilities in respect of Exchange Fund Bills and Notes and other borrowings, are now shown at the market value on the last day of each accounting period. The Fiscal Reserves Account is still shown at its face amount, with the difference between its market value and the face amount being included in other liabilities.
(e) Translation of foreign currency assets and liabilities
From 1994 onwards, assets and liabilities denominated in foreign currencies are translated into Hong Kong dollars at the middle market rate at the close of business on the last business day of the year. Prior to that, US dollar assets and liabilities were translated into HK dollars at the linked exchange rate of US$1 = HK$7.80. Assets and liabilities in other foreign currencies were translated into HK dollars based on US dollar middle market cross rates in London at the close of business on the last business day of the accounting period.
As backing for their bank note issues, each note-issuing bank is required to hold a non-interest bearing Certificates of Indebtedness issued by the Financial Secretary. Payments for the issuance and redemption of notes against these Certificates are made in US dollars at a fixed rate of US$1 = HK$7.80.
3. This comprises the fiscal reserves which have been transferred from the General Revenue Account, Capital Investment Fund, Loan Fund, Capital Works Reserve Fund, Civil Service Pension Reserve Fund and Disaster Relief Fund of Hong Kong Government to the Exchange Fund on an interest earning basis.
4.
5.
t
Other liabilities comprise expenses accrued at the year end, in the main interest due on transfer from fiscal reserves, other borrowings, provision for contingency related to Overseas Trust Bank Limited and the difference between the market value and the face amount of the Fiscal Reserves Account (see Note 1(d)).
In accordance with the Accounting Arrangements introduced in July 1988, The Hongkong and Shanghai Banking Corporation Limited, as the Management Bank of the Clearing House of The Hong Kong Association of Banks, is required to maintain a Clearing Account with the Exchange Fund. The balance in the Account, which represents the level of liquidity in the interbank market, is determined by the Monetary Authority. The Accounting Arrangements enable the Monetary Authority to maintain exchange rate stability more effectively by influencing the level of interbank liquidity through money market operations.
Figures for 1993 shown above reflect the accounting policies adopted in 1994. Figures for 1992 and prior years have not been restated.
Figures are revised based on new accounting policies adopted in 1995. The major change was the use of market rate of HK$ against US$ at the close of business while the old accounting policies were based on the conversion rate of HK$7.8 to US$1. Source: Hong Kong Monetary Authority.
453
454
APPENDICES
APPENDIX 18
(Chapter 7: Trade and Industry)
Hong Kong's External Trade by Major Trading Partner
$ Million
1994
%
$ Million
1995
%
$ Million
1996
%
Percentage
Change 1996 Over
1995
Imports
Supplier
China
Japan Taiwan
470,876
37.6
539,480
36.2
570,442
37.1
+5.7
195,036
15.6
221,254
14.8
208,239
13.6
-5.9
107,310
8.6
129,266
8.7
123,202
8.0
-4.7
United States
89,343
7.1
115,078
7.7
121,058
7.9
+5.2
Singapore
61,968
5.0
78,027
5.2
81,495
5.3
+4.4
Republic of Korea
57,551
4.6
73,268
4.9
73,302
4.8
Malaysia
20,147
1.6
28,797
1.2
33,994
2.2
+18.0
Federal Republic of Germany
28,660
2.3
32,038
2.1
33,884
2.2
+5.8
United Kingdom
25,405
2.0
30,448
2.0
33,264
2.2
+9.2
Italy
22,778
1.8
27,637
1.9
31,799
2.1
+15.1
Others
171,635
13.7
215,827
14.5
224,903
14.6
+4.2
Merchandise total
1,250,709
100.0
1,491,121
100.0
1,535,582
100.0
+3.0
Domestic Exports
Destination
China
61,009
27.5
63,555
27.4
61,620
29.0
-3.0
United States
61,419
27.7
61,250
26.4
53,860
25.4
-12.1
Federal Republic of Germany
12,811
5.8
12,178
5.3
11,388
5.4
-6.5
Japan
10,455
4.7
11,877
5.1
11,335
5.3
-4.6
United Kingdom
10,292
4.6
10,941
4.7
10,597
5.0
-3.1
Singapore
12,225
5.5
12,236
5.3
10,009
4.7
-18.2
Taiwan
6,076
2.7
7,971
3.4
6,705
3.2
-15.9
Netherlands
4,775
2.2
5,152
2.2
4,674
2.2
-9.3
Canada
4,173
1.9
4,324
1.9
3,885
1.8
-10.2
France
2,813
1.3
3,174
1.4
2,947
1.4
-7.1
Others
36,045
16.2
38,999
16.8
35,139
16.6
-9.9
Merchandise total
222,092
100.0
231,657
100.0
212,160
100.0
-8.4
Re-exports
Destination
China
322,835
34.1
384,043
34.5
417,752
35.2
+8.8
United States
210,077
22.2
230,997
20.8
242,342
20.4
+4.9
Japan
54,745
5.8
70,081
6.3
80,154
6.8
+14.4
Federal Republic of Germany
41,617
4.4
45,770
4.1
47,216
4.0
+3.2
United Kingdom
27,318
2.9
32,257
2.9
35,991
3.0
+11.6
Singapore
20,346
2.1
26,011
2.3
28,388
2.4
+9.1
Taiwan
22,416
2.4
27,758
2.5
26,638
2.2
-4.0
Republic of Korea
16,483
1.7
19,292
1.7
20,091
1.7
+4.1
France
Netherlands
Others
13,671
1.4
17,452
1.6
18,823
1.6
+7.9
13,542
1.4
16,702
1.5
18,261
1.5
+9.3
204,871
21.6
242,106
21.8
250,103
21.1
+3.3
Merchandise total
Note:
* denotes less than 0.05.
947,921
100.0
1,112,470
100.0
1,185,758
100.0
+6.6
Source: Census and Statistics Department.
APPENDICES
APPENDIX 19
(Chapter 7: Trade and Industry)
Hong Kong's External Trade Analysed by Standard International Trade Classification Revision 3 (SITC Rev. 3)
Imports
Section/division
Food and live animals
$ Million
1994
1995
1996
Meat and meat preparations
7,755
10,677
11,656
Dairy products and birds' eggs
3,371
3.704
4,280
Fish, crustaceans, molluses and aquatic invertebrates, and preparations thereof
12.659
14,088
14,807
Vegetables and fruit
11,911
12,592
12,917
Miscellaneous edible products and preparations
3,998
4,922
5,513
Others
Sub-total
Beverages and tobacco
Beverages
Tobacco and tobacco manufactures
11,082
12,213
12,800
50.776
58,195
61,972
7,361
8.148
7,706
11,817
10,846
11,137
Sub-total
19.178
18,995
18,844
Crude materials, inedible, except fuels
Hides, skins and furskins, raw
3,378
4.094
4,762
Textile fibres (other than wool tops and other combed wool) and their wastes
(not manufactured into yarn or fabric)
8.148
10,392
9.197
Metalliferous ores and metal scrap
1,869
5.458
4,997
Crude animal and vegetable materials, n.e.s.
4.379
4,552
4,329
Others
6,043
7,900
8,144
Sub-total
23,816
32,398
31,429
Mineral fuels, lubricants and related materials
Petroleum, petroleum products and related materials
18,232
22,143
27,469
Others
6,147
6,517
7.176
Sub-total
24,378
28,660
34,644
Animal and vegetable oils, fats and waxes
Fixed vegetable fats and oils, crude, refined or fractionated Others
2,795
4,002
4,199
212
251
236
Sub-total
3,007
4,253
4,435
Chemicals and related products, n.e.s.
Organic chemicals
9,789
14,767
13,468
Dyeing, tanning and colouring materials
Plastics in primary forms
Plastics in non-primary forms
Others
Sub-total
Manufactured goods classified chiefly by material
8,357
8,882
9,780
28,438
44,078
37,811
10,158
11,570
11,897
27,380
32,480
32,506
84.122
111,777
105,461
Textile yarn, fabrics, made-up articles, n.e.s. and related products Non-metallic mineral manufactures, n.e.s.
Iron and steel
118,205
130,422
127,730
39,790
43,960
43,391
22,127
28,806
31,407
Non-ferrous metals
Others
14,949
24,237
25,506
64,464
78,164
80,660
Sub-total
259,536
305,588
308,694
Machinery and transport equipment
Office machines and automatic data processing machines
48,468
68,737
81,382
Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof Others
120,621
145,976
141,033
138,881
185,943
195,942
135,664
153,260
150,499
Sub-total
443,633
553,915
568,856
Miscellaneous manufactured articles
Articles of apparel and clothing accessories
96,277
97,886
105,419
Footwear
47,128
52,715
56,734
Photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches and clocks Miscellaneous manufactured articles, n.e.s.
54,314
62,759
62,745
90,951
104,051
108,193
Others
48,880
54,983
61,491
Sub-total
337,549
372,394
394,582
Commodities and transactions not classified elsewhere in the SITC
4,714
4,946
Merchandise total
1,250,709
1,491,121
6,665
1,535,582
Gold and specie
Grand total
Note: n.e.s. not elsewhere specified.
31,810
1,282,519
25,851
1,516,972
21,431
1,557,013
455
456
Domestic Exports
Section/division
APPENDICES
IMA
A
5 Million
1994
1995
1996
Food and live animals
Fish, crustaceans, molluscs and aquatic invertebrates, and preparations thereof Cereals and cereal preparations
866
995
1,220
271
271
276
Miscellaneous edible products and preparations
1,152
1.194
1,166
Others
594
474
426
2,883
2,934
3,087
Sub-total
Beverages and tobacco
Beverages
Tobacco and tobacco manufactures
Sub-total
Crude materials, inedible, except fuels
共區
574
663
544
2,394
2,215
2,145
2,968
2,878
2,689
Pulp and waste paper
329
530
344
Textile fibres (other than wool tops and other combed wool) and their wastes
(not manufactured into yarn or fabric)
Metalliferous ores and metal scrap
Others
Sub-total
Mineral fuels, lubricants and related materials
99
78
74
1,299
1,674
1,501
91
146
94
1,818
2,429
2,014
834
731
327
128
247
138
Animal and vegetable oils, fats and waxes
Chemicals and related products, n.c.s.
Dyeing, tanning and colouring materials
Medicinal and pharmaceutical products
Essential oils and resinoids and perfume materials; toilet, polishing and cleansing preparations
Plastics in primary forms
Plastics in non-primary forms
Others
Sub-total
Manufactured goods classified chiefly by material
990
984
903
565
700
858
905
888
912
3.948
4,506
3,823
1,044
1,076
1,058
966
1,024
1,137
8,418
9,178
8.691
Paper, paperboard and articles of paper pulp, of paper or of paperboard
Textile yarn, fabrics, made-up articles, n.e.s. and related products
Non-ferrous metals
Manufactures of metals, n.e.s.
2,911
2,940
3,023
15,038
14,030
13,693
1,312
1,579
1,635
4,594
4,689
4,213
Others
2,599
2,473
1,975
Sub-total
26,455
25,711
24,538
Machinery and transport equipment
Office machines and automatic data processing machines
17,623
17,866
13,090
Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof Others
11,622
10,587
8,586
24,815
31.889
30,357
8,150
7,807
7,327
Sub-total
62,211
68,149
59,360
Miscellaneous manufactured articles
Prefabricated buildings; sanitary, plumbing, heating and lighting fixtures and fittings, n.e.s. Furniture and parts thereof; bedding; mattresses, mattress supports, cushions and
479
415
338
similar stuffed furnishings
332
299
267
Travel goods, handbags and similar containers
779
809
616
Articles of apparel and clothing accessories
73,086
73,801
69,447
Footwear
228
97
51
Professional, scientific and controlling instruments and apparatus, n.c.s.
2,088
2,916
3,298
Photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches and clocks Miscellaneous manufactured articles, n.e.s.
16,207
17,091
15,084
19,272
19,876
18,092
Sub-total
112,472
115,304
107,193
Commodities and transactions not classified elsewhere in the SITC
3,906
Merchandise total
222,092
4,097
231,657
4.121
212,160
Gold and specie
Grand total
Note: n.c.s. not elsewhere specified.
222,092
231,657
212.160
Re-exports
Section/division
APPENDICES
$ Million
1994
1995
1996
Food and live animals
Meat and meat preparations
1,841
3,157
5,482
Fish, crustaceans, molluscs and aquatic invertebrates, and preparations thereof
3,889
3,475
3,292
Vegetables and fruit
4.323
4,663
5,231
Miscellaneous edible products and preparations
1,283
1,858
2,215
Others
4.644
5,128
5,057
Sub-total
15,980
18,280
21,277
Beverages and tobacco
Beverages
4,319
4,099
3.483
Tobacco and tobacco manufactures
9,915
9,075
10,648
Sub-total
14,234
13,174
14,131
Crude materials, inedible, except fuels
Cork and wood
1,492
2,084
2,423
Textile fibres (other than wool tops and other combed wool) and their wastes
(not manufactured into yarn or fabric)
5,270
7,026
6.389
Metalliferous ores and metal scrap
1,325
3,291
3,062
Crude animal and vegetable materials, n.e.s.
3,429
3,334
3,323
Others
4,161
6,058
5,185
Sub-total
Mineral fuels, lubricants and related materials
Petroleum, petroleum products and related materials Others
Sub-total
Animal and vegetable oils, fats and waxes
Chemicals and related products, n.e.s.
Organic chemicals
Plastics in primary forms
Plastics in non-primary forms
Chemical materials and products, n.e.s.
Others
15,677
21,792
20,382
8,333
12.113
15,062
135
98
62
8.468
12,212
15,124
1,873
2,311
2,224
6,934
10,570
10,596
20,771
30,636
28.819
6,084
7.006
7,506
6,252
7,469
7,290
16,690
18,843
19,931
Sub-total
56,731
74,524
74,143
Manufactured goods classified chiefly by material
Textile yarn, fabrics, made-up articles, n.e.s, and related products
82,145
92,840
95,719
Non-metallic mineral manufactures, n.c.s.
18,779
21,281
21,768
Iron and steel
13,236
17,109
20,158
Manufactures of metals, n.e.s.
16,916
20,118
20,731
Others
34,576
45,611
50,143
Sub-total
165,653
196,959
208,518
Machinery and transport equipment
General industrial machinery and equipment
24,026
26,864
29,134
Office machines and automatic data processing machines
37,050
57,347
70,757
Telecommunications and sound recording and reproducing apparatus and equipment Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof Others
99,552
119,009
115,959
83,767
114,628
123,764
60,395
49,229
51,457
Sub-total
304,789
367,077
391,071
Miscellaneous manufactured articles
Articles of apparel and clothing accessories
92,335
90,951
100,524
Footwear
53,269
60,167
65,233
Photographic apparatus, equipment and supplies and optical goods, n.e.s.; watches and clocks Miscellaneous manufactured articles, n.e.s.
41,865
50,767
55,519
123.250
142,223
149,528
Others
50,859
58,723
63,717
Sub-total
361,579
402,831
434,522
Commodities and transactions not classified elsewhere in the SITC
2,936
Merchandise total
947,921
3,309
1,112,470
4,368
1,185,758
Gold and specie
Grand total
Note: n.e.s. not elsewhere specified.
Source: Census and Statistics Department.
717
1,093
948,638
1,113,563
1,489
1,187,247
457
458
APPENDICES
APPENDIX 20
(Chapter 7: Trade and Industry)
Hong Kong's Domestic Exports of Principal Commodity Groups
Percentage Change
1994
1995
1996
1996 over
Commodity Group ("
$ Million
$ Million
$ Million
1995
Textiles and clothing
88,124
87,831
(87,553)
82,889
-5
Electronic products (2)
58,091
64,282 (64,282)
55,067
-14
Watches and clocks (2)
13,196
13,620 (13,620)
11,987
-12
Jewellery, goldsmiths' and silversmiths' wares
5,229
5,711 (5,743)
5,782
+1
Printed matter
4,520
4,937 (4,937)
4,785
-3
Manufactures of metals
4,594
4,689 (4,689)
4,213
-10
Plastic products (2)
5,152
4,990 (4,990)
3,792
-24
Electrical appliances
1,401
1,341 (1,341)
1,631
+22
Toys and dolls (2)
2,478
2,420 (2,420)
1,610
-33
Total domestic exports of the above 9 groups
172,734
78
179,733 (179,487)
163,413
-9
78
(77)
77
(2)
As % of all domestic exports (%)
Notes:
Source:
As there was a re-classification of commodities in 1996, figures for 1994 and 1995 are not strictly comparable to those of 1996. To facilitate comparison, statistics for 1995 have been re-compiled and presented in brackets.
(1) For a breakdown of Hong Kong's external trade by the Standard International Trade Classification (SITC) Revision 3, readers should refer to Appendix 19. The statistics there are presented according to the classification of commodities by SITC Section, and within each Section, by major SITC Division. The table presented here is based on the Harmonized System and compiled for the convenience of those readers who may be more interested in domestic exports of certain commodity groups which are commonly referred to but which may not be readily derived from Appendix 19.
(2) There is some overlapping in the commodity coverage of 'electronic products' and 'watches and clocks'. Some commodity items, such as digital electronic watches, are included in both groups. There is also overlapping between 'electronic products' and 'toys and dolls' (items such as radio controlled toys, T.V. games and electronic games), and between 'plastic products' and 'toys and dolls' (item such as plastic toys). However, the values of these items are counted only once in the value of "Total domestic exports of the above 9 groups'.
Census and Statistics Department.
APPENDICES
Food product, beverage and tobacco manufactures
APPENDIX 21
(Chapter 8: Employment)
Number of Establishments (other than those in the Civil Service) by Selected Major Industry Group
Industry Sector/Major Industry Group
Mining and quarrying
Manufacturing
Wearing apparel
1994
1995
1996
9 34 068
7 31 114
789
733
7 27 316 651
4 153
3 692
3 008
Leather and leather products and footwear
377
304
211
Textiles
3 931
3 354
2 854
Wood and cork products, furniture and fixtures
925
804
649
Paper and paper products
952
929
850
Printing, publishing and allied industries
4 827
4 754
4770
Chemicals and chemical products, products of petroleum and coal
646
591
520
Rubber and plastic products
2 632
2.340
1914
Non-metallic mineral products
315
323
248
Basic metal
160
137
110
Fabricated metal products
4 341
3.899
3.394
Office, accounting and computing machines
202
218
208
Radio, television and communication equipment
156
156
101
Electronic parts and components
301
279
229
Electrical appliances and houseware
217
172
110
Other machinery and equipment
4 747
4 325
3.902
Transport equipment
544
515
500
Professional instrument and optical goods
I 082
973
782
Other manufacturing industries
2 771
2616
2305
Electricity and gas
23
23
24
Wholesale, retail and import/export trades, restaurants and hotels
192 336
184 532
183 291
Wholesale
17 049
16 652
17 666
Retail
53 558
51 197
52 684
Import/Export
111 132
106 680
103 138
Restaurants
9.491
8 976
8 920
Hotels and boarding houses
1 106
1 027
883
Transport, storage and communications
8 985
8 708
9 293
Land passenger transport
10
10
9
Water and air transport
758
616
586
Supporting services to transport
2 522
2 441
2632
Services incidental to transport
4 546
4 450
4 774
Storage
389
379
367
Communications
760
812
925
Financing, insurance, real estate and business services
48 148
45 769
46 270
Financial institutions
7 556
7 075
6917
Stock, commodity and bullion brokers
1 086
1 064
1 229
Insurance
5 107
4 748
5 243
Real estate
13 419
12 400
12 120
Business services
Community, social and personal services
Sanitary and similar services
Education and related services
Medical and health services
Other community and social services
Amusement and recreational services Personal services
Total
20 980
20 482
20 761
25 859
25 091
24 930
1 109
1 139
1 209
2 182
2 325
2340
4 381
4 283
4 107
2 463
2 447
2535
3 422
3 309
3033
12 302
11 588
11 706
309 428
295 244
291 131
Notes: (a) Figures refer to September of the year.
Source:
(b) Data are based on the Quarterly Survey of Employment and Vacancies conducted by the Census and Statistics Department. (c) Figures in this Appendix do not cover the following activities:
(i) Agriculture and fishing.
(ii) Construction.
(iii) Hawkers and retail pitches (other than market stalls).
(iv) Taxis, public light buses, goods vehicles, barges, lighters and stevedoring services.
(v) Veterinary services, religious organizations, authors and other independent artists, domestic helpers and miscellaneous
recreational and personal services.
(d) Unlike Chapters 7 and 8, the textiles industry in this Appendix includes 'knit outerwear and underwear'; however, the textiles industry
quoted in Chapters 7 and 8 does not cover 'knit outerwear and underwear' which has been included in the clothing industry.
Census and Statistics Department.
459
460
APPENDICES
Food product, beverage and tobacco manufactures
APPENDIX 22
(Chapter 8: Employment)
Number of Persons Engaged (other than those in the Civil Service) by Selected Major Industry Group and Number of Manual Workers at Construction Sites
Industry Sector/Major Industry Group
Mining and quarrying
Manufacturing
Wearing apparel
1994
1995
1996
488 438 382
491
486
386 106
23 785
22 306
327 464 22 434
101 544
82 432
66 023
Leather and leather products and footwear
2 924
2 223
1 442
Textiles
71 352
57 499
49 351
Wood and cork products, furniture and fixtures
3 752
3 208
2 332
Paper and paper products
8 156
7 682
6 886
Printing, publishing and allied industries
42 621
44 790
44 436
Chemicals and chemical products, products of petroleum and coal
7 434
6 962
6 294
Rubber and plastic products
20 464
16 459
13 345
Non-metallic mineral products
3 446
3 340
3111
Basic metal
2 003
1 822
1816
Fabricated metal products
29 264
25 082
20 550
Office, accounting and computing machines
12 145
10 518
6 323
Radio, television and communication equipment
4 986
3 970
1 903
Electronic parts and components
Electrical appliances and houseware
Other machinery and equipment
Transport equipment
Professional instrument and optical goods
Other manufacturing industries
Electricity and gas
Wholesale, retail and import/export trades, restaurants and hotels
18 327
19 462
16 074
3 878
3 352
2 324
31 794
29 383
24 842
12 525
10 824
9 663
17 223
15 921
12 165
20 759
18 871
16 150
11 789
11 745
11 390
1 051 193
1 030 871
1 046 561
Wholesale
Retail
Import/Export
Restaurants
79 843
79 813
80 214
207 772
196 072
207 169
532 913
535 793
535 553
191 870
182 057
186 970
Hotels and boarding houses
Transport, storage and communications
38 795
37 136
36 655
166 029
169 954
179 755
Land passenger transport
25 080
26 725
27 456
Water and air transport
34 906
34 971
36 338
Supporting services to transport
19 694
21 298
21 700
Services incidental to transport
45 414
45 512
50 013
Storage
6 300
5 942
5917
Communications
34 635
35 506
38 331
Financing, insurance, real estate and business services
361 072
375 366
391 151
Financial institutions
118 712
119 730
120 092
Stock, commodity and bullion brokers
12 606
13 274
15 248
Insurance
20 239
22 027
27 561
Real estate
66 181
72 110
75 841
Business services
Community, social and personal services
Sanitary and similar services
Education and related services
Medical and health services
Other community and social services
Amusement and recreational services Personal services
Total
143 334
148 225
152 409
291 653
298 264
314 516
31 504
33 215
39 622
89 824
94 428
93 994
53.993
57 843
61 471
28 358
28 800
31 805
32 809
33 819
36 549
55 165
50 159
51 075
2 320 606
2 272 797
2 271 323
Manual workers at construction sites
Notes: (a) Figures refer to September of the year.
60 392
65 821
76 580
(b) Data are based on the Quarterly Survey of Employment and Vacancies and the Quarterly Employment Survey of Construction Sites
conducted by the Census and Statistics Department.
(c) Figures in this Appendix do not cover outworkers in the manufacturing sector and persons engaged in the following activities:
(i) Agriculture and fishing.
(ii) Construction (other than manual workers at sites).
(iii) Hawkers and retail pitches (other than market stalls).
(iv) Taxis, public light buses, goods vehicles, barges, lighters and stevedoring services.
(v) Veterinary services, religious organizations, authors and other independent artists, domestic helpers and miscellaneous
recreational and personal services.
(d) Unlike Chapters 7 and 8, the textiles industry in this Appendix includes 'knit outerwear and underwear'; however, the textiles industry
quoted in Chapters 7 and 8 does not cover 'knit outerwear and underwear' which has been included in the clothing industry.
(e) Manual workers at construction sites include craftsmen, semi-skilled and unskilled workers.
Source: Census and Statistics Department.
APPENDIX 23
(Chapter 8: Employment) Occupational Injuries
APPENDICES
Number of injuries
1994
1995
1996*
Non-
Non-
Non-
Cause
Fatal
fatal Total
Fatal
fatal Total
Fatal
fatal
Total
Machinery: power driven
9
2 801
2 810
14
2 484
2 498
3
2410
2413
Machinery: non power driven
45
45
28
28
31
31
Transport
72
1 662
1 734
58
1 840
1 898
66
1 941
2007
Explosion or fire
16
442
458
2
390
392
35
349
384
Hot or corrosive substance
4 233
4 233
3 892
3 892
3.997
3 997
Gassing, poisoning and other
toxic substances
2
55
57
2
47
49
3
61
64
Electricity
7
64
71
5
43
48
5
62
67
Fall of person
58
8 944
9 002
54
8 714
8 768
46
9 598
9 644
Stepping on, striking against
or struck by objects
7 17 686 17 693
10 18 029
18 039
13
19 186 19 199
Falling object
13
2 732
2 745
19
2 294
2 313
12
2 131
2 143
Fall of ground
2
17
19
1
1
2
1
13
14
Handling without machinery
14 676 14 676
1
11 349
11 350
7986
7 986
Hand tool
5 040
5 040
5 862
5 862
5 589
5 589
Miscellaneous or causes not
yet assessed
77
5 756
5 833
81
4 155
4 236
94
5 833
5 927
Total
263 64 153 64 416
247 59 128 59 375
278 59 187 59 465
*
Note: Figures for 1996 are subject to amendment.
Source:
Labour Department.
461
APPENDICES
APPENDIX 24
(Chapter 9: Primary Production)
Imports of Crops, Livestock, Poultry and Fish
Item
Crops
Rice (unhusked)
Wheat
Other cereals and cereal preparations
Other field crops
Vegetables (fresh, frozen or simply preserved) Vegetables (preserved or prepared), fruit and nuts (fresh, dried, preserved or prepared) Flowers
Sugar and honey
Coffee
Unit
1994
1995
1996
tonnes
358 078
357 556
370 629
tonnes
95 576
82 399
36 148
tonnes
419 545
414 054
405 484
tonnes
59 967
54 332
53 623
tonnes
420 402
385 871
335 582
tonnes
$ thousand
tonnes
tonnes
1 160 413
184,116
209 389
7 733
1 133 228
195,278 239 939
1 168 870
157,709
290 263
5 577
6 603
tonnes
1 102
2 236
679
tonnes
25 745
22 929
19 388
Cocoa
Tea and mate
Livestock and poultry
Cattle
heads
131 869
108 610
80 631
Sheep, lambs and goats
heads
10 691
8 865
7 209
Swine
thousand heads
2 569
2 395
2 258
Chicken
tonnes
53 621
51 640
51 314
Other poultry
tonnes
20 744
19 178
15 966
Live animals
tonnes
6 652
8 496
10 355
Meat and meat preparations
tonnes
742 875
1 008 499
1 122 306
Dairy products and eggs
Milk (fresh)
tonnes
Cream (fresh)
tonnes
53 261
843
55 975
1 137
58 775
1 789
Milk and cream (evaporated, condensed,
powdered, etc)
tonnes
128 673
Butter, cheese and curd
tonnes
22 832
129 182
21 744
139 062
22 028
Eggs (fresh)
thousands
1 447 262
1 495 338*
Eggs (preserved)
thousands
209 921
186 444
1 534 989
196 811
Fish and fish preparations
Fish (fresh, chilled or frozen)
tonnes
Fish (dried, salted or smoked)
tonnes
174 971
14 386
157 150
17 582
150 312
17 023
Crustaceans and molluscs (fresh, frozen, dried,
salted, etc)
tonnes
110 415
111 586
104 468
Fish products and preparations
tonnes
8 796
8 116
8 929
Crustacean and mollusc products and
preparations
tonnes
6 109
4 776
5 585
Oil and fats (crude or refined)
tonnes
746
1 813
3.700
tonnes
12 871
13 732
15 061
Fish meals (animal feeding stuffs)
Note:
462
Source:
* Revised figure.
Census and Statistics Department.
APPENDICES
APPENDIX 25
(Chapter 9: Primary Production)
Estimated Local Production of Crops, Livestock, Poultry and Fish
Item
Unit
1994
1995
1996
Crops
Vegetables (fresh, frozen or simply preserved)
tonnes
89 000
88 000
76 000
Fresh fruit and nuts
tonnes
5 340
Flowers
$ thousand
163,000
4 820 206,000
5 230
186,800
(1)
tonnes
710
880
660
Other field crops
Livestock and poultry
Cattle
heads
180
190
270
Swine
(2)
thousand heads
186
208
288
Chicken
tonnes
18 500
17 400
17 040
Other poultry
tonnes
3 300
3.300
1 880
Dairy products and eggs
Milk (fresh)
Eggs (fresh)
tonnes
thousands
370
35 400
407
30 800
439
30 600
Fish and fish preparations
Fish (fresh, chilled or frozen)
Marine fish (3)
tonnes
Freshwater fish
tonnes
157 750 5 500
154 800 5 250
147 600 5 100
Fish (dried, salted or smoked)
Marine fish
tonnes
220
280
490
Crustaceans and molluscs (fresh, frozen, dried,
salted, etc)
tonnes
26 720
22 290
21 940
Fish products and preparations
tonnes
400
250
100
Crustacean and mollusc products and preparations tonnes
210
70
140
Fish meals (animal feeding stuffs)
tonnes
25 710
16 330
13 680
Notes: (1) Other field crops include yam, millet, peanut, sugar cane and sweet potato.
(2) Include local swine not slaughtered in abattoirs.
(3) Include cultured marine fish.
Source: Agriculture and Fisheries Department.
APPENDIX 26
(Chapter 9: Primary Production)
Local Production and Imports of Ores and Minerals
Item
Quartz
Feldspar
Graphite
Kaolin/feldspar sand
Sources:
Census and Statistics Department, Civil Engineering Department.
Tonnes
Production
1994
1995
1996
1994
Imports
1995
1996
1 338
209 312
732
588 340
4 814
105 036
449
488 733
2.995 59 694
298
212 902
463
APPENDICES
APPENDIX 27
(Chapter 10: Education)
Number of Educational Institutions by Type
As of September
Type
1994
1995
1996
Kindergartens Primary schools
739
731
734
884
860
856
Secondary schools
488
507
498
Special schools (1)
67
69
68
Technical Institutes
7
7
Technical Colleges
2
2
Hong Kong Institute of Education (2)
Approved post-secondary college
1
Other post-secondary colleges
16
17
16
UGC-funded institutions (2)
7
7
8
Open Learning Institute
1
Adult education institutions
396
400
411
Total
2 609
2 603
2 602
Notes: (1) Include Practical Schools and Skill Opportunity Schools.
(2) The Hong Kong Institute of Education was included within the purview of the University Grants Committee in 1996.
Number of Students by Type of Educational Institution (1)
As of September
1994
1995
1996
Type
Full-time! Part-timel Day Evening
Day
Full-timel Part-timel Evening
Full-timel Part-timel Day Evening
Schools
Primary
Secondary
Kindergartens
Special education (2)
180 109
476 847
458 199
12 922
8 065
180 317 467 718 459 845 8 476
180 771
11 152
466 507 465 658
11 950
8 697
Sub-total
1 123 220
12 922
1 116 356
11 152
1 121 633
11 950
Technical Institutes (3)
Craft level courses
5 746
16 138
5 659
16 493
5616
16 197
Technician level courses
7906
18 046
8 313
17 956
8 531
18 493
Sub-total
13 652
34 184
13 972
34 449
14 147
34 690
Technical Colleges
3 257
6 090
4.900
8 061
5 141
8 731
Hong Kong Institute of Education (4)
2 721
4 454
3 003
5 649
Approved post-secondary college
2712
2.600
2 434
Other post-secondary colleges
1 799
836
1994
1 021
2213
848
UGC-funded institutions (5)
Sub-degree
7 263
8 951
7117
7661
10 703+
12 639+
First degree
39 705
4 883
42 824*
4 627*
44 173+
4 754+
Postgraduate
Sub-total
3001
8 351
3 563*
9 652*
4.589+
10 553+
49 969
22 185
53 504
21 940
59 465+
27 946+
Open Learning Institute
Adult education institutions (6)
Total
29 488
1 226 818
18 311 62 534
161 516
32 590
20 085 59.547
20 451
33.359
59 211
1 228 919
161 904
1 238 392
163 827
Notes: (1) Figures for approved post-secondary college, other post-secondary colleges, Hong Kong Institute of Education in 1994 and the Open Learning Institute are as of October of the year. Figures for Technical Institutes and Technical Colleges are as of November of the year and include Block Release Courses. Figures for UGC-funded institutions and Hong Kong Institute of Education in 1995 are as of December of the year.
(2) Include enrolment in special classes in ordinary schools.
(3) Craft level course is post-secondary 3 course. Technician course is post-secondary 5 course.
(4) The Hong Kong Institute of Education was included within the purview of the University Grants Committee in 1996.
(5) The figures for Hong Kong Institute of Education were included since 1996.
(6) Adult education institutions refer to courses in Government evening institutes, the Evening School of Higher Chinese Studies and
various private schools offering a variety of subjects including commercial courses.
+
464
Source:
* Revised figure.
Provisional figure.
Education and Manpower Branch, Government Secretariat.
APPENDICES
APPENDIX 28
(Chapter 10: Education)
Number of Full-time Teachers by Type of Educational Institution
As of October
Type
1993
1994
1995
Kindergartens (1)
8 222
8 307
8 438
Primary schools (1)
19 122
19 493
19 710
Secondary schools
(1)
21 391
22 257
22 777
Special schools (1)
1 339
1 382
1 424
Technical Institutes (2)
729
746
756
Technical Colleges
(2)
108
239
354
Colleges of Education
431
Hong Kong Institute of Education
(2)
435*
406
Approved post-secondary college
145
136
133
UGC-funded institutions (3)
4 594
5011*
5 154
Total
56 081
58 006*
59 152
Notes: (1) Figures refer to permanent teachers in day schools only.
(2) Figures refer to full-time staff only.
(3) Figures refer to full-time equivalent staff as of December.
Revised figure.
Source: Education and Manpower Branch, Government Secretariat.
465
466
APPENDICES
APPENDIX 29
(Chapter 10: Education)
Pupil-teacher Ratios by Type of Educational Institution
As of October
Type
1993
1994
1995
Kindergartens (1)
15.2
14.5
14.3
Primary schools (2)
25.7
24.8
24.1
Secondary schools (2)
21.6
20.9
20.5
UGC-funded institutions (3)
11.9
11.6*
12.0
Notes: (1) Figures denote the ratios of half-day equivalent pupils to half-day equivalent teaching staff.
(2) Figures refer to day schools only, excluding schools operated under the English Schools Foundation and international schools. (3) Figures denote the ratios of full-time equivalent students to full-time equivalent teaching staff as of December. * Revised figure.
Source:
Education and Manpower Branch, Government Secretariat.
APPENDICES
APPENDIX 30
(Chapter 10: Education)
Students Leaving Hong Kong for Overseas Studies (")
Country
Britain (2)
United States
Canada
Australia
1994
1995
1996
3 222
2 979
2 506#
4 555
4 187
4 782
2 787
2 603
2 607
3 109
3 579
4 200
Notes: (1) Figures are based on the number of student visas issued as supplied by visa-issuing authorities.
(2) Exclude returned students, students on short courses and Government servants on training courses. # Figure covers the period from 1 January to 9 November 1996 only.
Education Department.
Source:
APPENDIX 31
(Chapter 10: Education)
Public Expenditure on Education
Financial Year (April-March)
1993/94
1994/95
1995/96+
Total expenditure ($ Million) (1)
25,409
28,878
33,781
As percentage of government budget (%)
16.4
17.4
17.3
As percentage of Gross Domestic Product (%)
2.8
2.8
3.0
Recurrent expenditure ($ Million)(1)
22,572
26,186
30,580
Percentage spent on
Primary education
24.0
23.1
22.4
Secondary education
35.2
34.3
33.2
Tertiary education
33.3
34.8
36.3
Notes: (1) Revised figures (include Special Education).
+ Revised estimates.
Source: Education and Manpower Branch, Government Secretariat.
APPENDIX 32
(Chapter 11: Health)
Population and Vital Statistics
1994
1995
1996
Estimated mid-year population (1)
6 035 400
6 156 000
6 311 000
Crude birth rate (2) (per 1 000 population)
11.9
11.2
10.0*
Crude death rate (2) (per 1 000 population)
5.0
5.1
4.9*
Infant mortality rate (3) (per 1 000 registered live births)
4.8
4.4
4.1*
Neo-natal mortality rate (3) (per 1 000 registered live births)
2.8
2.5
2.3*
Maternal mortality rate (3) (per 100 000 total births) Expectation of life at birth (2) (years)
11.1
7.3
1.5*
Male
75.7
76.0
75.9*
Female
81.5
81.5
81.5*
Notes: (1) The 1996 Population By-census conducted in March 1996 provided a benchmark for revising estimates of the population made since the 1991 Population Census. Revised figures for 1994 and 1995 are presented and are different from those published in the earlier issues of the publication.
(2) Figures for 1994 and 1995 were re-compiled using the revised population estimates released in September 1996. (3) Figures are based on registered deaths.
**
Provisional figure.
Sources: Census and Statistics Department,
Department of Health.
467
APPENDIX 33
(Chapter 11: Health)
Causes of Death ("
Cause
APPENDICES
1994
1995
1996*
Infectious and parasitic diseases, of which
1 179
Tuberculosis, all forms
409
1 060TM
418
1 163
310
Neoplasms, of which
9 449
9 793
10 137
Malignant, including neoplasms of lymphatic and
haematopoietic tissues
9 390
9 680
10 031
Endocrine, nutritional, metabolic and blood diseases, of which
465
607
594
Diabetes mellitus
358
470
456
Diseases of nervous system, sense organs and mental disorders
273
271
279
Diseases of circulatory system, of which
8 524
8 592
8 520
Heart diseases
4 909
4 886
4 837
Cerebrovascular disease
3 225
3 310
3 286
Diseases of respiratory system, of which
5 238
5 707
6 272
Pneumonia, all forms
2009
3 266
3 725
Bronchitis, emphysema and asthma
383
277
310
Diseases of digestive system, of which
1 334
1 354
1 404
Peptic ulcer
50
40
47
Chronic liver disease and cirrhosis
441
493
485
Diseases of genito-urinary system
1 100
1 141
1 208
Complications of pregnancy, childbirth and the puerperium
8
5
1
Diseases of skin, subcutaneous tissues, musculoskeletal
system and connective tissues
70
90
90
78
Congenital anomalies
144
151
151
Certain conditions originating in the perinatal period
167
128
140
Symptoms, signs and ill-defined conditions
437
405
403
Injury and poisoning, of which
1 718
1 590
1 699
All accidents
844
755
792
Suicide and self-inflicted injuries
751
724
778
Total
30 106
30 894
32 049
Notes: (1) Figures are based on registered deaths.
Provisional figures.
Source: Department of Health.
468
APPENDIX 34
(Chapter 11: Health) Hospital Beds
Type of institutions
Hospital Authority hospitals
Correctional institutions
Government clinics/maternity homes
Private institutions
Total
Note: Provisional figure.
Sources: Department of Health,
Hospital Authority.
APPENDIX 35
(Chapter 11: Health)
Registered Medical Personnel (1)
APPENDICES
1994
23 955
849
As at end of year
1995
25 000
773
85
1996
25 600
769
72
3 515*
84
3 442
3 450
28 330
29 308
29 956
Doctors
1995 1996*
492 501 519
In Government service (4)
1994
As at end of year
Under Hospital Authority
1994 1995
1996
1994
Total registered
1995
1996*
2 725 2951
3 090
Dentists
203
213
211
4
5
3
7 670† 8 122† 9 196†
1615† 1625† 1654†
Dental hygienists
6
8
11
123
133 139
Registered nurses (general)
920
974
1 043
Registered nurses (psychiatric)
9 692 10 134 1 007
974
10 358 974
23 018
23 996 24 814
1 514
1 552 1 579
Registered nurses
(mentally subnormal)
19
20
20
Registered nurses
(sick children)
13
14
17
Enrolled nurses (general)
336 371
383
Enrolled nurses (psychiatric)
Pharmacists
30
36
36
36
2719 2839 556 573
119 142
2 959
8 312
8 650
9 061
638
790
819
904
153
953
995 1067
Medical laboratory technologists(2)
212 189 220
997 1051
1 089
2 387
Occupational therapists
4
4
299 342
380
622
2 568 2713
668
730
Radiographers(3)
9
9
10
619 681
715
―
1 151
Optometrists(3)
2
4
16 20
20
1 315
Notes: (1) Annual re-registration is required for doctors, dentists, pharmacists, medical laboratory technologists, occupational therapists,
radiographers and optometrists.
(2) Refer to medical technologists and medical laboratory technicians.
(3) Registration for radiographers and optometrists started in 1996.
(4) Refer to those working in the Department of Health.
*
+
Provisional figures.
Figure refers to the registered medical/dental personnel on both the local and overseas lists. Not applicable.
Sources: Department of Health,
Hospital Authority.
469
470
APPENDIX 36
(Chapter 12: Social Welfare) Social Security Schemes
APPENDICES
No. of cases
as at end of year
Type
1994
1995
1996
Comprehensive Social Security Assistance
105 600
129 245
159 837
Social Security Allowance
484 600
494 070
506 837
Criminal and Law Enforcement Injuries
Compensation
664
582
757
Traffic Accident Victims Assistance
5 688
5 890
5 822
Emergency Relief (1)
48
59
55
Note: (1) Figures denote the number of incidents requiring emergency relief services during the year.
Source: Social Welfare Department.
APPENDICES
APPENDIX 37
(Chapter 13: Housing)
Number of Quarters and Estimated Persons Accommodated
as at 31 March 1996
Hong
Kong
Type of housing
Island
Kowloon
Number of quarters
New Territories
Total
Public Rental Housing
78 800
269 600
359 800
708 200
Subsidized Sale Flats
26 700
47 100
137 500
211 300
Private Permanent Housing
335 900
331 200
418 300
1 085 400
Total Permanent Housing
441 400
647 900
915 600
2 004 900
Temporary Housing
5.900
11 100
56 700
73 700
Type of housing
Public Rental Housing
Subsidized Sale Flats
Private Permanent Housing
Total Permanent
Temporary Housing
Marine
Total Population
Source:
Census and Statistics Department.
Hong
Kong
Island
Kowloon
Estimated persons accommodated
New Territories
Total
281 300
872 100
1 317 300
2 470 700
90 700
165 100
462 800
950 000
955 800
1 027 100
718 600
2 932 900
1 322 000
1 993 000
2 807 200
6 122 200
5 400
16 100
90 000
111 500
16 800
6 250 500
471
472
APPENDICES
APPENDIX 38
(Chapter 14: Land, Public Works and Utilities)
The Land Registry
1994
1995
1996
Documents received for registration (Numbers)
Assignments of land
7 465
6 469
Assignments of building units
137 876
112 212
6 231
159 520
Agreements for sale and purchase of land
3 589
2 522
Agreements for sale and purchase of building units
114 892
97 649
3 292
147 423
Building mortgages/building legal charges
82
101
63
Other mortgages/legal charges
133 023
129 235
194 970
2.
Reassignments/receipts/discharges/releases and
certificates of satisfaction
104 557
98 257
146 012
Miscellaneous
75 490
75 339
83 972
Total
576 974
521 784
741 483
Considerations in documents received for registration ($ Million)
Assignments of land
80,977
49,656
38,098
Assignments of building units
397,910
309,475
412,420
Agreements for sale and purchase of land
81,548
17,412
43,107
Agreements for sale and purchase of building units
423,948
265,814
474,660
Building mortgages/building legal charges
10,208
7,912
11,090
Other mortgages/legal charges
102,072
76,804
75,281
Reassignments/receipts/discharges/releases and
certificates of satisfaction
44,706
36,701
42,309
Miscellaneous instruments
Total
1,141,369
763,774
1,096,965
Conditions of sale, grant, exchange, etc registered
(Numbers)
806
777
1 103
Government leases registered (Numbers)
25
17
13
Multi-storey building owners corporations registered
(Numbers)
258
296
234
Public searches of Land Registers and records (Numbers)
3 480 033
2 938 379
4 313 948
Source: The Land Registry.
APPENDICES
APPENDIX 39
(Chapter 14: Land, Public Works and Utilities)
Electricity Distribution
Terajoules
1994
1995
1996
China Light and Power Company
81 659
82 650
Hongkong Electric Company
29 723
30 167
83 847 31 943
Total
111 382
112 817
115 790
Domestic
Industrial
25 827
27 063
29 194
21 437
20 222
Commercial
Street lighting
Export to China
Total
57 508
59 908
282
284
19 934 64 465 287
6 327
5 340
1 910
111 382
112 817
115 790
Sources: China Light and Power Company Limited,
Hongkong Electric Company Limited.
Gas Distribution (Towngas)
Domestic
Industrial
Commercial
Total
Source: Hong Kong and China Gas Company Limited.
1994
1995
Terajoules 1996
10 606
11 408
11 986
919
978
9 202
9 586
918 10 085
20 727
21 972
22 989
Local Sales of Liquefied Petroleum Gas (LPG)
Total
Note: * Estimate.
Source: Census and Statistics Department.
Water Consumption
1994
187 816
1995
185 849
Tonnes
1996
164 563*
Million cubic metres
1994
1995
1996
Fresh water
923
919
928
Salt water (flushing purposes)
142
159
185
Source: Water Supplies Department.
473
APPENDICES
APPENDIX 40
(Chapter 15: Transport)
Inward and Outward Movements of Aircraft, Vessels, Motor Vehicles and Trains
Aircraft
Arrivals
Departures
Total
Ocean vessels
Arrivals
Departures
Total
River steamers, hydrofoils, hoverferries, catamarans
and river trading vessels
Arrivals
Departures
Total
Motor vehicles
Arrivals
Departures
Total
Passenger trains
Arrivals
Departures
Total
Note: Provisional figure.
1994
共
71 609
71 642
143 251
圖
36 721
37 028
73 749
1995
1996
75 053
75 065
79 401 † 79 396 †
150 118
158 797 +
41 154
41 605
40 688 + 40 767 +
82 759
81 454 †
155 231
173 750
154 463
173 272
177 600+ 177 100+
309 694
347 022
354 700 †
4 076 702
4 226 075-
4 455 628
4 090 984
4 239 621
4 456 616
8 167 686
8 465 696
8 912 244
1 970
1 868
I 970
1 868
1 878 1 877
3 940
3 736
3 755
Inward and Outward Movements of Containers
1994
1995
T.E.U.
1996 +
At Kwai Chung/Stonecutters Island Terminals
Discharged
3 396 628
3 904 368
4 100 000
Loaded
3 881 489
4 351 803
4 600 000
Tota!
7 278 117
8 256 171
8 700 000
Elsewhere in Hong Kong by Ocean-going vessels
Discharged
1 595 334
1 612 474
1 600 000
Loaded
1 243 985
1 317 034
1 400 000
Total
2 839 319
2 929 508
3 000 000
Elsewhere in Hong Kong by River trading vessels
Discharged
Loaded
Total
476 776
455 818
932 594
I 364 067
698·035
666 032
A
800 000
700 000
1 500 000
Notes: T.E.U. refers to Twenty-foot Equivalent Unit.
474
+ Provisional figures.
―
APPENDICES
Inward and Outward Movements of Passengers (Immigration figures) (1)
Thousands
1994
1995
1996
Arrivals
Air
Sea
(2)
Land
9.890
10 631
11 692
10 357
10 332
10 603
23 197
25 150
27 618
43 444
46 112
49 913
Total
Departures
Air Sea (2)
Land
Total
Notes: (1) All figures quoted here exclude:
(a) Passengers in transit;
(b) Passengers refused permission to land; and
(c) Military passengers.
10 028
10 739
11 786
10 596
10 571
10 772
22 728
24 703
27 280
43 352
46 014
49 837
(2) Include helicopter passengers to/from Macau as from 1993.
Inward and Outward Movements of Cargo Carried by Different Modes of Transport
Air
1994
605 782 686 722
Tonnes
1995
1996
Discharged Loaded
685 450 772 230
Total
1 292 504
1 457 680
733 934 + 829 598 †
1 563 532 +
Ocean vessels (1) (2)
Discharged
76 672 000
87 048 000
Loaded
34 274 000
40 127 000
86 403 000 + 38 993 000 †
Total
110 947 000
127 175 000
125 395 000 †
River vessels (1)
Discharged
16 172 135
14 722 782
N.A.
Loaded
13 906 632
14 009 206
N.A.
Total
30 078 767
28 731 988
N.A.
Rail
Discharged (3)
Loaded
Total
Road (4)
Discharged Loaded
1 146 078 345 206
996 633 315 742
683 907
255 054
1 491 282
1 312 375
938 961
7 531 591
8 263 723
8 812 298
5 611 352
5 936 171
5 990 106
13 142 943
14 199 893
Total
14 802 405
Notes: (1) Figures on cargo movement by ocean vessels are based on the Shipping Statistics System set up by the Census and Statistics Department and are estimated from a sample of consignments on ocean cargo manifests. Figures on cargo movement by river vessels are provided by the Port Development Board.
(2) All figures are published in the nearest thousands.
(3) Exclude livestock.
+ Provisional figure.
N.A. Not available.
(4) Road transport refers to traffic through Man Kam To, Sha Tau Kok and Lok Ma Chau to and from China.
Sources: Census and Statistics Department,
Civil Aviation Department,
Customs and Excise Department,
Immigration Department,
Kowloon-Canton Railway Corporation, Marine Department,
Port Development Board.
475
APPENDIX 41
(Chapter 15: Transport)
Registered/Licensed Motor Vehicles
Public service vehicles
Public buses
China Motor Bus Company Kowloon Motor Bus Company
New Lantao Bus Company
Citybus Company
Others
Public light buses
Taxis
Private vehicles
Motor cycles
Motor tricycles
Private cars
Private buses
Private light buses
Goods vehicles
Special purpose vehicles
APPENDICES
As at end of year
1994
1995
1996
Registered
Licensed
Registered
Licensed
Registered
Licensed
951
899
3 367
3 341
881 3 506
805
855
843
3 477
3 594
3 581
76
71
79
69
78
69
249
241
368
360
451
390
4 364
4 098
4 765
4 467
5 287
5 048
4 350
4 322
4 350
4 328
4 348
4 313
18 111
17 856
18 190
17 841
18 126
17 789
28 372
20 378
29 073
21 011
30 164
22 650
24
21
23
20
2
0
311 929
279 420
318 233
285 467
325 131
293 381
285 2 589
278
333
313
383
359
141 574#
2 426 121 325#
2 585
2 422
2 481
136 316#
302
256
311
117 928 #
277
134 419
2 303
116 791
345
316
Crown vehicles (excluding
vehicles of HM Forces)
Motor cycles
1 321
1 321
1 322
1 322
1 207
1 207
Other motor vehicles
6 157
6 157
5 961
5 961
6 075
Total
524 021
462 410
526 296
466 068
532 946
6 075
475 115
Public Transport: Passenger Journeys by Undertaking
Thousand journeys
1994
Kowloon Motor Bus Company
976 670
1995
996 060
1996
China Motor Bus Company
196 803
190 973
1 031 878
179 212
New Lantao Bus Company
6 502
5 377
Citybus (1)
67 703
87 504
5 270 119 686
Kowloon-Canton Railway Bus
34 718
35 960
38 074
Mass Transit Railway Corporation
804 062
812 519
816 572
Kowloon-Canton Railway Corporation
222 290
233 804
248 331
Light Rail Transit
116 980
122 651
125 124
Hongkong Tramways
124 636
112 963
107 816
Peak Tramways Company
3.982
3 985
4 401
Green Minibus
290 524
308 644
325 552*
Residential Coach Services
32 779
34 416
37 124*
Hongkong and Yaumati Ferry Company
40 169
36 916
34 213
'Star' Ferry Company
36 161
34 950
35 225
Minor Ferries
9 356
9 246
Public Light Buses (2)
358 174
Taxi (2)
465 370
328 141
472 041
8 913 314 722
473 213
Total (3)
3 786 879
3 826 149
3 905 325*
476
APPENDICES
Public Transport: Average Daily Number of Passenger Journeys by Different Modes of Transport
1994
1995
Franchised bus
Mass Transit Railway
3 513
3 605
Thousand journeys
1996
3 754
2 203
2 226
2 231
Red Minibus (2) and Green Minibus
1 777
1 745
1 749
*
Taxi (2)
1 275
1 293
1 293
Kowloon-Canton Railway-Heavy Rail
609
641
678
Tram
352
320
307
Kowloon-Canton Railway-Light Rail
320
336
342
Ferry
235
222
214
Residential coach
90
94
101 *
Total (3)
10 375
10 483
10 670 *
Public Transport: Cross Harbour Passenger Journeys by Selected Modes of Transport
Mass Transit Railway
Franchised bus
Ferry
Thousand journeys
1994
1995
1996
313 138
317 026
319 889
130 853
132 539
145 484
49 888
46 378
45 008
Notes: (1) Citybus Ltd. operated a franchised bus route from 12 September 1991, 26 more franchised routes from 1 September 1993, and another
14 franchised routes from 1 September 1995.
(2) Estimates.
(3) Figures may not add up to total due to rounding.
*
Provisional figure.
#
Revised figure.
Source: Transport Department.
477
478
APPENDIX 42
(Chapter 18: Public Order)
Traffic Accidents by Area
Hong Kong Island
Kowloon
New Territories
Marine
Total
港
Traffic Casualties by Area
Hong Kong Island
Fatal
Serious
Slight
Kowloon
Fatal
APPENDICES
1994
1995
1996*
3 642
3 397
3 386
7 198
6 866
6 545
4 579
4 524
25
15 444
14 812
25
4 409
5
14 345
1994
1995
1996*
47
42
38
850
781
736
3 763
3 487
3 572
139
Serious
1 551
1 478
Slight
7 631
7 218
107
84
1 440
6 845
New Territories
Fatal
Serious
Slight
113
1.304
1 394
140
1 231
5 323
5 214
4 989
111
Marine
Fatal
Serious
Slight
Total
0
5
0
4
27
28
5
20 753
19 873
19 084
0
13
Notes: Figures represent the position as at January 1997.
* Provisional figures.
Source: Royal Hong Kong Police Force.
APPENDIX 43
(Chapter 18: Public Order)
Crime Statistics
Reported Crime (Police Cases)
Type of offence
APPENDICES
Number of cases reported
1994
1995
Number of persons arrested
1996
1994
1995
1996
Violent Crime
Rape
Indecent assault
Murder and manslaughter
Attempted murder
Wounding
Serious assault
Assault on police
Kidnapping and child stealing
Cruelty to child
Criminal intimidation
100
103
86
84
102
67
1 066
1 099
1 214
677
744
776
96
73
77
91
81
116
2
7
1
3
3
1
1 517
1 727
1 721
1 129
1 255
1 373
4 832
5 233
5 241
3 757
4 149
4 165
854
912
766
578
583
496
6
7
5
14
7
1
109
126
107
104
118
99
880
890
732
604
704
511
Robbery with firearms
14
8
7
12
7
6
Robbery with pistol like object
173
153
76
64
32
17
Other robberies
6 082
5 393
3 845
2 152
1 834
1 470
Aggravated burglary
4
7
2
6
Blackmail
837
743
608
923
795
700
Arson
660
606
705
121
108
112
Sub-total
17 232
17 087
15 191
10 315
10 528
9 910
Non-violent Crime
Burglary
13 505
13 171
10 504
1 673
1956
1 435
Snatching
1 633
1 547
1 223
335
309
254
Pickpocketing
863
993
865
435
440
362
Shop theft
7 213
7 568
6 950
6 911
7 469
6 934
Theft from vehicle
3.804
3 765
3 124
1 028
1 021
797
Taking conveyance without authority
4 635
4 386
2 639
386
447
384
Other thefts
12 988
15 047.
13.395
5 579
6 075
5 340
Handling stolen goods
211
286
207
285
362
260
Deception, fraud and forgery
3. 201
4 093
4 167
1955
2 270
1 982
Sexual offences other than rape and
indecent assault
1 256
1 289
1 298
1 158
1 174
1 270
Serious narcotics offences, including
manufacturing and trafficking
4 618
5 701
4 645
5 224
6 403
5 216
Serious immigration offences
4 021
4 117
3 302
4 013
4 030
3 252
Criminal damage
5 154
5 216
5 222
1 867
1 978
1 809
Unlawful society offences
1 512
1 445
1 134
857
989
728
Possession of arms, ammunition and
offensive weapon
870
738
536
942
752
620
Other crimes
5 088
5 437
4 648
6 821
6 895
6 604
Sub-total
70 572
74 799
63 859
39 469
42 570
37 247
Total
87 804
91 886
79 050
49 784
53 098
47 157
Overall crime rate (number of crimes
per 100 000 population)(1)
1 454.8
Overall detection rate
50.3%
1 492.6
52.0%
1 252.6
51.5%
Note: (1) Figures for 1994 and 1995 were re-compiled using the revised population estimates released in September 1996. Source: Royal Hong Kong Police Force.
479
480
Narcotics Offences (1)
APPENDICES
Number of cases reported
Number of persons arrested
Type of offence
1994
1995
1996
1994
་
1995
1996
Serious offences
Manufacturing of dangerous drugs
27
28
18
47
61
26
Trafficking in dangerous drugs
936
1 187
981
1 225
1 426
1 273
Possession of dangerous drugs
(indictable offence)
3 654
4 482
3 639
3 951
4 902
3911
Other serious narcotic offences
1
4
7
1
14
6
Sub-total
4618
5 701
4 645
5 224
6 403
5 216
Minor offences - Opium
Simple possession of opium
27
Possession of equipment
210
12
16
2 -
30
5
13
1
15
Keeping a divan
1
1
Consuming opium
2
1
2
3
1
3 - 2
1
Sub-total
46
5
15
49
6
16
Minor offences - Heroin
Simple possession of heroin
7 372
6 357
5 799
7 872
6771
6 148
Possession of equipment
518
679
646
502
696
700
Keeping a divan
3
4
1
3
2
Consuming heroin
124
77
55
118
82
60
Other heroin offences
Sub-total
8 017
7 117
6 501
8 495
7 553
6910
Minor offences - Other dangerous drugs
Simple possession
Consuming
Other offences
Sub-total
Total
1 565
1 861
2 350
1711
2 080
2 571
9
7
11
7
8
14
4
7
4
5
9
4
1 578
1 875
2 365
1 723
2 097
2 589
14 259
14 698
13 526
15 491
16 059
14 731
Note: (1) Serious narcotics offences include police cases only, whereas minor narcotics offences include police cases and customs and excise cases.
Source: Royal Hong Kong Police Force.
ICAC Cases
APPENDICES
Number of persons prosecuted
1994
1995
1996
Nolle
Pending Convicted Acquitted
Prosequi
Total
Involving individuals employed in
2
2
4
2
2
4
1
1
1
1
2
2
I
1
2
2
1
1
1
1
10
12
32
1
1
1
-
~~~ | - | - | 9 − | | -
1 | 2 |
8
- | | ∞ ~
government departments
Buildings
1
Civil Engineering Services
1
Correctional Services
5
Customs and Excise
3
Drainage Services
1
Fire Services
1
Health
Highways
Home Affairs
Hospital Services
Housing
1
Immigration
3
2
1
Lands
1
2
Post Office
Regional Services
1
1
Royal Hong Kong Police
23
58
10
Territories Development
Transport
Urban Services
~ ~
2
Water Supplies
2
1
1
Sub-total
45
79
16
22
14
52
Others
Public bodies (1)
7
5
3
4
1
8
Private sector
247
342
85
Sub-total
254
347
88
Total
299
426
104
༄༄།༴།
184
48
317
188
49
325
210
63
377
Note: (1) As defined in the Prevention of Bribery Ordinance, Cap. 201.
Source: Independent Commission Against Corruption.
481
482
APPENDIX 44
(Chapter 18: Public Order)
Fire Services Statistics
APPENDICES
1994
1995
1996
Services
Fire calls
29 472
31 014
32 855
Special service calls
20 365
21 420
21 107
Ambulance calls
Emergency
289 289
317 749
347 607
Urgent
62 581
63 873
65 086
Non-emergency
73 465
43 721
8 527
Sub-total
425 335
425 343
421 220
Total
475 172
477 777
475 182
Ku
Fatalities
Fire
Special services
Total
Source: Fire Services Department.
41
23
66
491
468
515
532
491
581
BLIC LIBRA
APPENDIX 45
(Chapter 18: Public Order) Judiciary Statistics
Supreme Court
Court of Appeal
Criminal appeals Civil appeals
Sub-total
High Court
APPENDICES
1994
1995
1996
668
816
738
236
274
258
904
1 090
996
Criminal Jurisdiction
Criminal cases
460
405
460
Appeals from Magistrates
1 632
1 247
I 534
Sub-total
2 092
1 652
1 994
Civil Jurisdiction
Miscellaneous appeals
(1)
Appeals from Labour Tribunal
129
201
155
та
6
Appeals from Minor Employment Claims
Adjudication Board (2)*
10
4
Appeals from Small Claims Tribunal
32
21
15
Appeals from Obscene Articles Tribunal (1)
3
High Court actions
13 208
13 598
14 872
Commercial
250
257
Construction
48
57
375 87
Miscellaneous proceedings
3 659
3.968
Personal injuries (3)
182
1 271
Adoptions
8
3
Divorce
5
6
Probate
8 094
8 419
4 534 1 387
4
1
8 670
Admiralty
480
463
427
Bankruptcy
1 080
1 448
1 698
Company winding-up
582
631
742
Sub-total
27 757
30 353
32 980
Sub-total
29 849
32 005
34 974
Total
30 753
33 095
35 970
District Court
Criminal Jurisdiction
1 318
1 322
1 133
Civil Jurisdiction
Civil actions
20 057
Miscellaneous proceedings (4)
16 886 1 311
25 909
Stamp appeals
50
Distress for rent
5 883
Employee's compensation
803
735
Divorce
9 272
Divorce by joint application (5)
Adoptions
287
Sub-total
36 352
36 785
56
7 249
10 292
256
1 747
8 216
739 12 834
203 253
49 949
48
Total
37 670
38 107
51 082
483
484
APPENDICES
1994
1995
1996
Small Claims Tribunal
Number of claims filed
Labour Tribunal
41 455
41 694
Number of cases filed
5 967
7 645
41 936
7 862
Obscene Articles Tribunal
Number of cases filed for classification
2. 301
2 225
1 212
Number of articles filed for determination
10 504
5 919
99 317
Total
12 805
8 144
100 529
Coroner's Court
Number of inquests held
249
299
202
Number of deaths inquired into
6 955
7 214
7 512
Lands Tribunal
2.
Number of cases field
4 963
4 037
4 029
Magistracies
Charge sheets issued
142 759
155 665
147 152
Summonses issued
192 923
197 269
Department Summonses issued (6)
202 029
Drivers' Offence Point Summonses issued (6)
5 063
Fixed Penalty Summonses issued (6)
2 162
Private Summons (6)
20
Miscellaneous proceedings issued
19 993
20 203
11 886
Anti-litter notices issued
Fixed penalty notices issued
Total
Defendants charged
Adults
Juveniles
36 699
39 910
38 380
235 175
195 915
143 528
627 549
608 962
550 220
623 350
614 800
4 121
3 832
564 659 3 307
627 471
618 632
567 966
Total
Defendants convicted
Adults
Juveniles
Total
581 257 2 254
583 511
554 275 2 208
529 567 1 817
556 483
531 384
Notes: (1) Figures are available from 1 January 1996 onwards.
(2) Figures are available from 1 March 1995 onwards.
(3) Figures are available separately from 17 October 1994 onwards. Figures before that date are included in 'High Court actions'. (4) Figures are available from 1 January 1995 onwards.
(5) Figures are available from 24 June 1996 onwards.
(6) Figures are available separately from 1 January 1996 onwards. Figures before that date are grouped together as 'Summonses issued'.
Source: Judiciary.
APPENDIX 46
(Chapter 18: Public Order)
Correctional Services
Prisoners
Male
Female
Drug Addiction Treatment Centre inmates
Male
Female
Training Centre inmates
Male
Female
Detention Centre inmates
Male
Remanded persons
Male
Female
Residents in Half-way Houses
APPENDICES
1994
Population as at end of year
1995
1996
7 754
8 044
8 186
922
1 191
1 359
1 075
1 141
1 029
185
200
244
30
620
597
505
58
67
68
168
145
159
1 161
1 157
958
123
144
124
Male
Female
a
80
92
74
6
3
6
24
Vietnamese Migrants
Male
8 814
7 760
3 221
Female
7 459
6 132
2 348
Illegal Immigrants awaiting repatriation
Male
Female
135
80
172
54
95
117
Discharged persons under aftercare supervision
Male
3 149
3 318
3 530
Female
235
350
329
Source:
Correctional Services Department.
485
486
APPENDICES
APPENDIX 47
(Chapter 21: Communications and the Media)
Communications
1994
1995
1996 Estimate
Postal traffic
Letter mail (million articles)
Posted to destinations abroad
Posted for local delivery
Received from abroad for local delivery In transit
Parcels (thousands)
Posted to destinations abroad
Posted for local delivery
Received from abroad for local deliver
In transit
Telecommunications traffic
Telephone services
起
Effective exchange capacity (thousand lines)
Keylines and PABX lines (thousands)
Fax lines (thousands)
Telephone lines (thousands)
Number of telephones (thousands)
Number of telephones per 100 population
International telephone and fax services
Outward (thousand minutes)
Inward (thousand minutes)
Number of international telephone circuits
Outward (thousand messages)
j
165.9
164.2
158.6
839.5
894.2
913.0
100.5
105.5
100.6
2.0
1.1
0.9
I 220
I 130
119
478
52
共
1 095
90
482
53
3 277
468
252
3 114
4 050* 66.8*
1 537 727
1 418 162*
498.55 27 987
1 820
165
香
95 419
37
3 339
3. 490
496
515
273
310
3.400
4 440
3 254
4 230 * 68.3*
1 668 286
1 543 811*
555.10 31 520 1 946
122
69.3
1 736 492
I 838 043
597.60 34 225 2 093
Number of outgoing calls (millions)
Number of international leased circuits
International telegraph services
98
Inward (thousand messages)
226
167
122
Transit (thousand messages)
149
130
91
Number of international telegraph circuits
2 445
2 337
2 215
International telex services
Outward (thousand minutes)
17 800
17 729
15 921
Inward (thousand minutes)
17 063
14 445
12 213
Transit (thousand minutes)
15 391
11 003
9 860
Number of telex trunks
2 058
2 032
1 969
Radio pictures transmissions
Transmitted
Received
Broadcast and reception services (thousand hours)
Meteorological
Telecommunications licences (all types)
Note:
* Estimate.
Sources: Office of the Telecommunications Authority,
Post Office.
17
8
104.3
0
103.2
120.0
96 613
97 383
99 172
APPENDICES
APPENDIX 48
(Chapter 23: Recreation, Sports and the Arts)
Major Recreation and Amenities Facilities
Urban Council
Regional Council
1994
1995
1996
1994
1995
1996
Facilities
Indoor games halls/Indoor recreation centres
35
37
40
32
32
32
Squash courts
137
166
185
118
118
118
Tennis courts
130
128
136
113
110
120
Fitness centres/Sports centres
#
#
3
1
1
Stadia (outdoor)
2
2
Turf pitches
38
44*
47
19
Hard surfaced pitches
129*
134
129
85
85
19
20
89
90
Athletic grounds
8
8
9
13
13
Bowling greens
2
2
2
2
2
Obstacle golf courses
2
2
2
Roller skating rinks
17
17
15
Jogging tracks/Fitness trails
29
32*
33
122
23
20
129
23
23
19
20
Cycling tracks
*
4
4
2
3
1 2 2 N
12 23
14
2
Boating parks
1
1
1
1
2
2
Beaches
12
12
12
30
29
29
29
Swimming pool complexes
14
14
16
14
14
15
Water sports centres
3
3
3
Holiday camps
1
1
1
3
3
3
Horse riding school
1
1
1
1
1
1
Golf centre
|
1
Gardens/Sitting-out area.
805*
808*
812
550
575
587
Children's playgrounds
273
277*
280
276
285
295
Zoos/aviaries
4
4
1
1
1
Total area of public open space administered
(hectares)
627
640
650
730†
797+
863*
Notes: # Decentralize to indoor games hall.
+ Exclude open space on beaches.
* Revised figure.
Sources: Regional Services Department,
Urban Services Department.
487
APPENDIX 49
(Chapter 24: The Environment) Climatological Summary, 1996
APPENDICES
Mean
pressure
Maxi-
mum
Mean
Mini- mum
Mean
Mean
Mean
Total
Prevailing
Mean
al mean air temp- sea level
air temp-
air temp-
dew
relative
amount bright
Total
wind
wind
erature
erature
erature
point
humidity
of cloud
sunshine
rainfall direction
speed
Month
(hectopascals)
(°C)
(°C)
(°C)
(°C)
(%)
(%)
(hours)
(mm) (degrees)
(km/h)
January
1 019.0
24.1
17.8
12.1
12.3
71
63
134.4
1.3
070
26.7
February
1 020.7
26.4
14.9
5.8
10.1
74
73
80.0
27.2
010
28.5
March
1 014.5
28.5
19.7
10.8
16.6
83
75
104.9
83.1
070
26.2
April
1 014.0
28.8
20.4
10.9
17.1
82
81
82.2
228.7
070
27.4
May
1 009.9
30.6
25.0
20.5
21.3
81
75
119.7
313.9
080
20.7
June
1008.8/7
33.2
28.8
24.7
24.7
79
70
192.1
404.0
220
22.0
July
1 005.3
34.3
29.2
24.4
25.1
79
71
216.4
230.3
230
23.9
August
12
1 006.3
33.5
28.5
22.6
24.7
81
72
177.5
308.3
240
21.4
September
1007.7
33.0
27.7
23.6
23.8
80
68
154.8
604.0
090
26.4
October
1 013.6
30.3
26.0
20.5
20.8
74
58
201.1
44.8
080
26.7
November
1 015.8
29.8
23.0
16.3
16.8
69
63
171.3
3.5
080
31.6
December
1 019.9
24.8
18.3
13.5
11.1
64
49
177.3
Trace
070
27.0
Year
1 012.9
34.3
23.3
5.8
18.7
76
68
1 811.7
2 249.1
070
25.7
Climatological Normals (1961-1990)
Mean
pressure
at mean
sea level
Maxi-
mum
air temp-
air temp-
7
Mini-
Mean
mum
air temp-
Mean dew
Mean relative
Mean amount
Total bright
Total
Prevailing wind
Mean
wind
erature
erature
erature
point
humidity
of cloud
sunshine
rainfall direction
speed
Month
(hectopascals)
(°C)*
(°C)
(°C)*
(°C)
اور کرام
(%)
(hours)
(mm) (degrees)
(km/h)
January
1 020.2
26.9
15.8
0.0
10.2
71
58
152.4
23.4
070
24.0
February
1 018.7
27.8
15.9
2.4
11.8
78
73
97.7
48.0
070
23.8
March
1 016.2
30.1
18.5
4.8
15.0
81
76
96.4
66.9
070
22.1
April
1 013.1
33.4
22.2
9.9
19.0
83
78
108.9
161.5
080
19.7
May
1 009.1
35.5
25.9
15.4
22.6
83
74
153.8
316.7
090
19.2
June
1 006.0
35.6
27.8
19.2
24.4
82
75
161.1
376.0
090
21.6
July
1 005.3
35.7
28.8
21.7
24.9
80
65
231.1
323.5
230
20.0
August
I 005.1
36.1
28.4
21.6
24.8
81
66
207.0
391.4
090
18.5
September
October
1 008.8
35.2
27.6
18.4
23.3
78
63
181.7
299.7
090
21.9
1 014.0
34.3
25.2
13.5
19.8
73
56
195.0
144.8
090
27.6
November
1 017.9
31.8
21.4
6.5
15.2
69
53
181.5
35.1
080
27.2
December
1 020.2
28.7
17.6
4.3
11.2
68
49
181.5
27.3
080
25.5
Year
1 012.9
36.1
23.0
0.0
18.6
77
65
1 948.1
2 214.3
080
22.6
Note: * These extreme values are for the period 1884-1939; 1947-1996.
488
Source: Royal Observatory.
APPENDIX 50
(Chapter 24: The Environment)
Environmental Statistics
APPENDICES
1994
1995
1996
Average Daily Solid Waste (tonnes)
Municipal solid waste (1)
Domestic
Commercial
6 100
700
6 200
500
Industrial
1 700
1 100
Sub-total
8 500
7 800
6 400
1.000
800
8 200
Construction waste (1)
15 500
14 100
7 500
Special waste (1)
400
400
500
Recovered waste (2)
3.800
4 000
3.100
Total
28 200
26 300
19 300
Pollution Complaints Handled (number of cases)
Air
3.893
4 518
6 160
Noise
5 761
6 858
7 441
Liquid
487
781
1 164
Solid
196
310
535
Water
17
55
83
Miscellaneous
151
34
9
Total
10 505
12 556
15 392
Notes: (1) 1996 figures are based on CED/EPD waste intake records from Jan-Oct 1996. All figures are rounded off to the nearest hundred.
(2) 1996 figure is based on waste recovery for export, which is projected with reference to Jan-Oct 1996 data.
Source: Environmental Protection Department.
489
490
APPENDICES
APPENDIX 51
(Chapter 26: History)
Governors of Hong Kong
The Right Honourable Sir Henry POTTINGER, Bt, GCB
Sir John Francis DAVIS, Bt, KCB
Sir Samuel George BONHAM, Bt, KCB
Sir John BowRING
The Right Honourable the Lord Rosmead, GCMG, PC
Sir Richard Graves MACDONNELL, KCMG, CB
Sir Arthur Edward KENNEDY, GCMG, CB
Sir John Pope HENNESSY, KCMG
The Right Honourable Sir George Ferguson BoWEN, GCMG
Sir George William DES VOEUX, GCMG
Sir William ROBINSON, GCMG
Sir Henry Arthur BLAKE, GCMG
The Right Honourable Sir Matthew NATHAN, GCMG
The Right Honourable the Lord LUGARD, GCMG, CB, DSO, PC
Sir Francis Henry MAY, GCMG
Sir Reginald Edward STUBBS, GCMG
Sir Cecil CLEMENTI, GCMG
Sir William PEEL, KCMG, KBE
Sir Andrew CALDECOTT, GCMG, CBE
Sir Geoffry Alexander Stafford NORTHCOTE, KCMG
Sir Mark Aitchison YOUNG, GCMG
Sir Alexander William George Herder GRANTHAM, GCMG
Sir Robert Brown BLACK, GCMG, OBE
Sir David Clive Crosbie TRENCH, GCMG, MC
The Right Honourable the Lord MACLEHOSE of Beoch,
KT, GBE, KCMG, KCVO
Sir Edward YoUDE, GCMG, GCVO, MBE
Lord WILSON of Tillyorn, GCMG
The Right Honourable Christopher Francis PATTEN
June 26, 1843
May 8, 1844
March 21, 1848
April 13, 1854 September 9, 1859
March 11, 1866
April 16, 1872
April 22, 1877
March 30, 1883
October 6, 1887
December 10, 1891
November 25, 1898
July 29, 1904
July 29, 1907
July 24, 1912
September 30, 1919
November 1, 1925
May 9, 1930
December 12, 1935
October 28, 1937
September 10, 1941
July 25, 1947
January 23, 1958 April 14, 1964
November 19, 1971
May 20, 1982
April 9, 1987
July 9, 1992
INDEX
Accidents--
(Dates in brackets refer to Calendar of Events)
industrial, 33, 124-5, 264, 299
occupational, 461
traffic, 241-2, 271, 278, 299
Acquired Immune Deficiency Syndrome (AIDS),
148, 162
Administration-
District, 11-12
Labour, 118
Land, 218
Structure of, 15
Adventure Ship, 369
Advisory committees, 14
Agriculture-
and fisheries, 49, 129-32
and Fisheries Department, 129-31
crops, 129, 463
development, 129
industry, 129-32
livestock, 130, 462-3
loans, 130
marketing, 132
pest management, 130
poultry, 129, 463
research, 129-30
Air Services Agreements, 39, 255
Airport-
Chek Lap Kok (Jan 6, Mar 2, May 30),
259-60, 264
Core Programme, 201, 257-64
Kai Tak, 254, 257, 259, 314
Memorandum of Understanding, 258
New Airport Projects Co-ordination Office,
263
Airport Authority,
257
Antiquities Advisory Board, 359-60
Aquatic fauna, 391-2
Archaeology, 359, 60, 402-3
Armed Services, 310-13
Army, 310-12
The Garrison and the Community, 312-13
Arts, 345-55
Arts (Cont.)
Arts Development Council, 344-5 British Council, 349
Chung Ying Theatre Company, 346
City Contemporary Dance Company, 346 City Hall, 353-4
community arts centres, 351, 354
computerised ticketing, 354
District Arts Support Scheme, 352
Exploration Theatre, 347
Festival of Asian Arts, 350
HK Academy for Performing Arts, 347
HK Arts Centre, 348
HK Arts Development Council, 345
HK Arts Festival, 349
HK Ballet, 347
HK Chinese Orchestra, 346
HK Cultural Centre, 353
HK Dance Company, 346
HK Film Archive, 357
HK Festival Fringe, 349-50
HK Independent Short Film and Video
Awards, 350
HK International Film Festival, 350
HK Jockey Club Music and Dance Fund,
348
HK Philharmonic Orchestra, 345
HK Repertory Theatre, 346
HK Sinfonietta, 347
HK Stadium, 353
Indoor Stadia, 354
International Arts Carnival, 351
International Children's Arts Festival, 352
Ko Shan Theatre, 354
Museums, 355-8
Music Office, 349
Regional Council presentations, 351-3
Urban Council presentations, 350-1
Visual Arts, 353
venues, 353
Audit of public accounts, 7, 17
491
492
INDEX
Auxiliary Services-
Civil Aid Services, 307
Government Flying Service, 308 Medical Services, 171
Police, 288
Bankruptcies and Liquidations, 86
Banks-
Bank for International Settlements, 70
Bank of China, 91
foreign, 71
Hong Kong Association of, 71
Hongkong and Shanghai Banking
Corporation Limited, 91
interest rates, 71
licences, 71-2, 449-50
Note-issuing banks, 91
Standard Chartered Bank, 91
supervision, 71
World Bank, 84
Basic Law, 23, 26, 42
Beaches, 363, 367, 375
Bill of Rights, 28
Birds, 370
Births, 161, 396, 399, 467
Books Registration Office, 363
Botanical Gardens, 370
British-
Council, 160, 349
Forces Broadcasting Service, 335
National (Overseas) Passports, 446
Nationality Selection Scheme, 446
Broadcasting-332
Authority, 333
Television, 333
Sound, 334
Buddhism, 339
Budget-
appropriation bill, 6
management, 65
revenue and expenditure, 65, 67-9, 441-8
Building Development-
private, 214
public, 215
Bus services, 233, 244-7
Business Ethics Campaign, 294
Cemeteries and Crematoria, 176
Central Policy Unit, 15
Chambers of Commerce-
American Chamber of Commerce, 98, 108
Chambers of Commerce-(Cont.)
Chinese General Chamber of Commerce, 98,
108
Hong Kong General Chamber of Commerce,
98, 109
Indian Chamber of Commerce, 98, 109
Japanese Chamber of Commerce, 108
Charter for Youth, 207
Chief Secretary, 15
China-
relations with, 36-45, 402-10
trade, 54-56, 94, 406
Chinese-
festivals, 339
General Chamber of Commerce, 98, 108
language, 23, 25, 138, 149
Manufacturers' Association, 108
temples, 340
University of Hong Kong, 158, 464-7 Christian community, 340-1
Cinemas, 336
City Hall, 353
Civil Aviation-254-6
Air Services Agreements, 39, 255
Civil Service-19-24
Training Centre, 23
Climate, 387-9, 488
Coins, 91-2
Commodities Trading, 75 Community Chest, 369
Companies Registry, 84
Constitution, 4
Consumer Council, 112-4
Consumer price index, 62-3, 437-40
Container port, 203, 210, 216-7, 247, 265-8
Convention of Chuenpi, 405
Convention of Peking, 406
Co-operative societies, 147
Copyright, 302, 322
Correctional Services-302-7, 485
adult male offenders, 302
after-care, 305
detention centres, 306
drug addiction treatment, 303-4
educational and vocational training, 304 female offenders, 303
industries, 306
medical care,
304
psychological services, 305
Release Under Supervision Board, 305
Society for the Rehabilitation of Offenders,
307
INDEX
Correctional Services-(Cont.)
staff training, 307 young offenders, 302-3 Country Parks, 393
Countryside conservation, 393 Court of Final Appeal, 26 Crime-271-6
ballistics and firearms, 274-5 commercial, 273
Fight Crime Committee, 269 information, 274 Interpol, 275
narcotics, 273
organised and serious, 272 prevention, 274
smuggling, 291 Crops, 129, 462-3
Customs and Excise-109-10, 289-93
anti-narcotics, 290 anti-smuggling, 291 Department, 289-93
endangered species, 110
intellectual property, 291-2 revenue protection, 289 trade controls, 109
World Customs Organisation, 292
Deaths, 127, 396, 399, 468-9
Defence Lands, 40
Dental Services, 164
Dental Training, 167
Deposit-taking companies, 71, 450
District-
Administration, 11
Boards, 11
Drainage services, 222-5
Drug abuse-167-71
Action Committee Against Narcotics
(ACAN), 168
Central Registry of Drug Abuse, 168 drug seizures, 169, 273-4
Drug Trafficking (Recovery of Proceeds)
Ordinance, 274, 290
international action, 171 legislation, 169
preventive education, 170
treatment, 169
Economy-
Budget, (Mar 6), 65 domestic demand, 58
economic policy, 64 external trade, 56
Economy (Cont.)
General Revenue Account, 64
government accounts, 64
government loans, 64-5
growth, 46 inflation, 62-3 labour market, 58
links with China, 54-5 manufacturing, 53
property market, 62
public expenditure and revenue, 67-9, 443-8 service sector, 51-2
structure and development, 47-9
Education-
adult, 159-60
Advisory Committee on Teacher Education
and Qualifications, 139 Advisory Inspectorate, 152 apprenticeship, 157
Baptist University, 158 Board of, 137-8 British Council, 349 Chinese University, 158 City University, 158 civic and moral, 148 commission, 137
Community Youth Club, 149
Council for Academic Accreditation, 141
Curriculum Development Council, 138
Curriculum Development Institute, 152 Department, 136
Duke of Edinburgh's Award Scheme, 149 educational television, 153
extra-curricular activities, 149 financial grants, 143-4
funding, 467
HK Examinations Authority, 140-1 HK Polytechnic University, 158 industrial training, 155-6 Institute of Education, 159 Institute of Language, 159 international schools, 151 Kindergartens, 144 language, 138
legislative framework, 136 library services, 148
Lingnan College, 158
Open Learning Institute, 159
post-secondary, 159
primary, 145-6
Research Grants Council, 140
re-training for workers, 121
scholarships, 144
secondary, 146-8
493
INDEX
494
Education (Cont.)
sex and AIDS, 148
Sir Edward Youde Memorial Fund, 144
Sister Schools Scheme, 149
skills centres for disabled, 157
special, 149-51
structure of the system, 134
student finance, 143
support services, 151
Target Oriented Curriculum, 152
teachers, 139, 153
Teachers education, 154-5
technical, 155-6
tertiary education, 142
UK-HK scholarships, 144
University Grants Committee, 139
University of Hong Kong, 158
University of Science and Technology, 159 Vocational Training Council, 140 vocational training for the disabled, 157
Elections
Boundary and Election Commission, 14 Chief Executive, (Dec 11), 43 district boards, 11-14 Electoral Provisions (Miscellaneous Amendments) (No. 2) Bill, 24-25
electoral system, 11, 13
Legislative Council, 44
municipal councils, 14
Electricity, 229-31
Electronics industry, 95
Emigration, 397
Employment-
agencies, 124
apprenticeship schemes, 157
careers guidance, 122
employee benefits, 117
employee's compensation, 127
Employees Retraining Scheme, 121
employment abroad, 124
foreign domestic helpers, 123
finding employment, 120
foreign workers, 122
industrial safety, 124
Labour Advisory Board, 119
labour conditions, 118
labour relations, 119
Labour Tribunal, 120
legislation, 118
occupational health and hygiene, 126
Occupational Retirement Schemes Ordinance,
77
Occupational Safety and Health Council,
127
Employment (Cont.)
protection of wages on insolvency, 120
selective placement, 121
telephone enquiry service, 128
trade unions, 119
wages, 117 work force, 460 Energy, 229-32, 473 Environment-
air, 373
aquatic fauna, 391
charging scheme for sewage services, 384
chemical waste treatment centre, 375, 385
climate 387-9
construction and demolition, 382
country parks, 393
environmental assessments, 376-7
environmental problems, 374-6
Environmental Protection Department, 375
flora, 390
government expenditure, 373
hydrography, 390
legislation and pollution control, 378-83 livestock, 383
marine parks, 393
meteorological services, 393
monitoring and investigations, 377
noise, 373, 383
oceanography, 390
ozone, 383
radiation, 395
Royal Observatory, 393-5 sewerage master plans, 384 terrestrial fauna, 391
topography and geology, 389
waste disposal, 373, 380
water pollution, 374
weather forecasting, 393-5
year's weather, 388, 488
Estate Duty, 68
Ex-China Vietnamese Illegal Immigrants, 302
Exchange Fund, 90-2
Exchange value of dollar, 89-90
Executive Council, 5, 414
Explosives, 133, 277
Export Credit Insurance Corporation, 107
Exports, 54, 56-8
External trade, 56-8
Federation of HK Industries, 108
Fight Crime Committee, 269-70
Film industry, 336
Finance Committee, 28
INDEX
Financial and Monetary Affairs--
banking, 71-92
commodities trading, 75 currency, 71
Exchange Fund, 82-3, 90
financial institutions, 71 foreign banks, 71
gold market, 80
HK Monetary Authority, 70-4, 87
insurance, 76
Mandatory Provident Fund, 77
markets, 79-84
monetary policy, 87
regulation, 72-7
Securities and Futures Commission, 78
stock market, 72
Financial Secretary, 5, 15
Fire Services-298-301
ambulance service, 299
communications, 299
fire calls, 298 prevention, 300
special services, 299
training, 301
First Opium War, 405
Fishing Industry-
co-operative societies, 131 development, 131
fleet, 130
loans, 131
marine fish culture, 131 ponds, 131
research, 131
Flora, 390
Forensic Laboratory, 167, 296 Foreign relations, 18
Gas, 232
Geology, 389
Geophysical Services, 395 Geotechnical control, 225
Good Citizen Award Scheme, 280
Government-
administration, 15 branches, 16 Budget, 65-9, 441-8
Central Policy Unit, 15 departments, 16 Efficiency Unit, 16 language, 25
Letters Patent, 4 overseas offices, 422 performance pledges, 22
Government (Cont.)
Political Adviser, 19
Public Service, 19
Records Service, 24
revenue and expenditure, 65
Royal Instructions, 4
Secretariat, 19
system of government, 5-18 Government Flying Service, 308-9 Governor, (Jan 6), 4-5
Governor in Council, 5
Gross Domestic Product, 435-6
Health-
abattoirs, 176
AIDS, 162
Auxiliary Medical Services, 171-2 cemeteries, 176
clinics, 163
communicable diseases, 161
community nursing service, 165
Council on Smoking and Health, 166
crematoria, 176
dental services, 164
dental training, 167
Department, 161
development programmes, 178-9
drug abuse, 167-71
education, 163, 166
environmental health, 172-3
family, 164
food hygiene, 174
Government Laboratory, 167
hawkers, 175-6
HK Academy of Medicine, 167 Hospital Authority, 161 hospitals, 162
life expectancy, 161 markets, 175
medical charges, 166 medical personnel, 469 medical schools, 166-7 mentally ill, 165
primary health care, 163 schools of nursing, 167
smoking, 166
Student Health Service, 164
Traditional Chinese Medicine, 167
Heritage, 358
Heung Yee Kuk, 12
Hindu community, 342
History, 451-9
HK Academy of Medicine, 167
HK Applied R & D Fund Co Ltd, 99
495
INDEX
HK Arts Development Council, 345 HK Council of Social Service, 177
HK Export Credit Insurance Corporation, 107 HK General Chamber of Commerce, 109 HK Industrial Estates Corporation, 101
HK Industrial Technology Centre Corporation,
101
HK Journalists Association, 322
HK Laboratory Accreditation Scheme, 99 HK Management Association, 109 HK Monetary Authority, 70-4, 87
HK Polytechnic University, 158
HK Productivity Council, 101
HK Shipowners Association, 253
HK Shipping Register, 253
HK Sports Development Board, 363-4 HK Stadium, 353
HK Tourist Association, 314-9
HK Trade Development Council, 105 Housing-188-200
allocation, 192 Authority, 189
building works, 195
commercial properties, 197
cottage areas, 199
elderly, 193
estate liaison offices, 196
Home Ownership Scheme, 193
Home Purchase Loan Scheme, 194 Information Centres, 200
maintenance, 197-8
management, 196
private sector, 190
Private Sector Participation Scheme, 193 redevelopment, 195
rent control in private sector, 191 rent policy, 191-2
sandwich class housing scheme, 194
Society, 189
squatters, 198
subsidy policy, 192
temporary, 199
transit centres, 199
welfare services, 196
Immigration-297-8, 397-401
births and deaths, 399
British Nationality Selection Scheme, 397
BN(O) passport, 397-8
control, 397
Department, 396
emigration, 397
establishment, 399
496
illegal, 397
Immigration (Cont.)
legal, 397
marriages, 398
naturalisation, 398
personal documentation, 397
Vietnamese migrants, 277, 306, 399-401 Imports, 58, 94-7, 454-5
Independent Commission Against Corruption-16,
293-6, 481
Advisory Committee on Corruption, 295 community relations, 294
corruption reports, 293
corruption prevention, 293
operations, 293
Industry-
Chinese General Chamber of Commerce, 98,
108
Chinese Manufacturers' Association, 98, 108 Department, 98
Federation of Hong Kong Industries, 98
HK Awards for Industry, 100
HK Applied R & D Fund Co Ltd, 99 HK General Chamber of Commerce, 98 HK Industrial Estates Corporation, 101 HK Industrial Technology Centre
Corporation, 101
HK Laboratory Accreditation Scheme, 99
HK Management Association, 109
HK Productivity Council, 101
industrial scene,
93
overseas investment, 96-7
products, 94-5
quality assurance, 99
science and technology, 99
Standards and Calibration Laboratory, 99
trade and industrial policies, 93
Inflation, 62-3, 437-40
Information policy, 322
Information Services Department, 323-5
Internal revenue, 67-9, 443-8
International Rights and Obligations, 60-1
Jewish community, 343
Joint Declaration, 26, 36
Joint Liaison Group, (Sep 19, Nov 13), 37-42 Judiciary, 31-2
Junior Police Call, 280
Kowloon Walled City Park, 370
Labour-
administration and services, 118
Advisory Board, 119
careers guidance, 122
INDEX
Labour (Cont.)
compensation, 127 conditions, 118 Department, 118
employee benefits, 117
force, 116-7
foreign workers, 122-3
industrial safety, 124, 127, 461
International Labour Conventions, 119,
430-1
legislation, 118
retraining, 121
Occupational Retirement Schemes Ordinance,
77
occupational safety, 127
Protection of Wages on Insolvency Fund,
120
relations, 119
trade unions, 119
Tribunal, 120
wages, 14, 130
Land, Public Works and Utilities-
administration, 218
Land Commission, 42, 219
district planning, 205 drainage services, 222-5 electricity, 229-31
enforcement, 206
fill management, 226-7 gas, 232
geotechnical control, 225-7
land acquisition, 218
land administration, 218
land disposal, 219
land registration, 219
land sales, 219
Metroplan, 208
new towns and rural townships, 210
Planning Standards and Guidelines, 203-6
port and airport development, 257-68
private building development, 214
public building, development, 215 reclamation, 209
rural planning, 213
Sub-Regional Development Strategies, 205 survey and mapping, 221
Territorial Development Strategy, 204
Territorial Development Strategy Review,
204
town planning, 204
urban development, 208-13
urban renewal, 207
water supplies, 228-9, 473
Language, 25
Law-
Basic, 42
Court of Final Appeal, 26 drafting, 27
in HK, 26
localisation and adaptation of, 27
Legal System...
arbitration, 29
Attorney General, 29-30 Bill of Rights, 28 Chief Justice, 31 Coroner's Court, 32
Court of Final Appeal, 26 District Court, 31
Duty Lawyer Service, 34-5 High Court, 31
Intellectual Property Department, 30 Judiciary, 31-2
Labour Tribunal, 32
language, 32
Law Reform Commission, 30
Legal Advice Scheme, 35
Legal Aid, 32-4
legal profession, 31
Letters Patent, 4
Magistrates' Courts, 32
Obscene Articles Tribunal, 32
Official Solicitor, 34
Small Claims Tribunal, 32
Supreme Court, 31
Tel Law Scheme, 35
Legislative Council, 5-10, 417-8 Legislative Council Commission, 9 Legislative Council Secretariat, 10
Letters Patent, 4
Libraries, 344, 361-2
Lingnan College, 158
London Office, HK Government, 104, 422 Lotteries Fund, 185
Manufacturing, 94-5
Mapping, 220-1
Marine-
container port, 203, 210, 216-7, 247, 265-8 Department, 247
HK Shipping Register, 253
maritime search and rescue, 250
Mercantile Marine Office, 253
port planning, 266
Port Development Board, 265
port services, 247-8
river traffic, 267
training, 253
Marriages, 398
497
498
INDEX
Media, 321-338 Medical-See Health
Metroplan, 208
Mining, 132-3
Monetary policy, 87-92
Money lenders, 85-6
Municipal Councils, 10, 14, 175, 350-8, 419-20
Museums-355-8
Art, 355
History, 356
Railway, 358
Sam Tung Uk, 357
Science, 356
Sheung Yiu Folk, 358
Space, 356
Music-
HK Chinese Orchestra, 346
HK Jockey Club Music Fund, 348
HK Philharmonic Orchestra, 345 HK Sinfonietta, 347 Office, 349
Muslim community, 341-2
Narcotics, 167-71, 273-4
New towns-210
Fanling and Sheung Shui, 211
Sha Tin, 210
Tai Po, 211
Tseung Kwan O and Sai Kung, 212
Tsuen Wan, 210
Tuen Mun, 211
Tung Chung and Tai Ho, 213
Yuen Long, Tin Shui Wai and Northwestern
New Territories, 212
Nuclear power-
radiation monitoring, 395
Ocean Park, 367-8
Oceanographic services, 390
Office of the Director of Audit, 17-8
Official Receiver, 86
Ombudsman (formerly Commissioner for
Administrative Complaints, 16, 296
Open Learning Institute of Hong Kong, 159
Outwards Bound School, 368
Overseas offices, 104, 422-3
Overseas representation in HK, 421
Performance Pledges, 22
Planning Department, 203
Police Complaints Committee, 285, 288
Police, Royal Hong Kong-
anti-smuggling task force, 280 Auxiliaries, 288
Police, Royal Hong Kong (Cont.)
awards, 287
ballistics, 274-5
bomb disposal, 277
commercial crime, 273 communications, 282-3
Complaints Against Police Office, 284,
288-9
crime information, 274, 479-81 crime prevention, 274
crime rate, 269
Dog Unit, 277
establishment, 287
Good Citizen Award Scheme, 280
identification, 275
illegal immigrants, 276
information technology, 283
Interpol, 275
Junior Police Call, 280
licensing and societies registration, 279
marine, 279-80
narcotics, 273
organised and serious crime, 272
planning and development, 281-2
promotions, 287
public order, 276
public relations, 280-1
recruitment, 286
Royal Hong Kong Auxiliary Force, 288 Service Quality Wing, 284
Tactical Unit, 285
traffic, 278, 478
training, 285-6
Training School, 285
transport, 283
Vietnamese migrants, 277
welfare, 287
Political Adviser, 19
Pollution See Environment
Population, 396-401, 467
Port Development-265-8
container terminals, 203, 210, 216-7, 247,
265-8
Port Development Board, 265
Port Cargo Forecasts, 267
Postal services, 337-8
Power stations, 257-8, 417-8
Press, The, 321-2
Primary Production, 129-133
Printing and publishing, 114-5 Prison, 302-7
Profits Tax, 67, 443-8
Protestant community, 340
INDEX
Public-
Accounts Committee, 7 audit of accounts, 17 expenditure, 65, 67-9 libraries, 344
Records Office, 24 Service, 19
Service Commission, 19
transport, 242-6
utilities, 228-232
Quarrying, 132-3
Queen, The, 4
Radiation monitoring, 395 Radio, 334-6
Rainfall, 388, 488
Rates, 67-9
Recreation-
and Culture, 344-72
beaches and swimming pools, 363, 367
Sports, 363-6
major parks, 371
Regional Council
hawkers, 176
role and function, 10-1
Recreation, Sports and the Arts, 351-3, 355,
357-8
public health, 172
markets, 175
members, 420
Religion and Custom, 339-43
Rent Control, 191
Reptiles, 391
Reservoirs, 255-6
Revenue Sources, 76-9
Roman Catholic community, 341
Royal Instructions, 4 Royal Observatory, 393
Salaries tax, 68, 443-8
Second Anglo-Chinese War, 406 Shipbuilding and repairing, 251 Shipping, 248-53
Shipping Register, 253
Shue Yan College, 159
Sikh community, 342
Sino-British Joint Declaration on the Question of
HK--36
Sino-British Joint Liaison Group, (Sep 19, Nov
13), 37-42
Sino-British Land Commission, 42 Social Welfare-177-187
care of elderly, 182
civic education, 187
Commission on Youth, 186
community building, 186
expenditure, 177
family welfare services, 181
HK Council of Social Service, 177 medical social service, 182
rehabilitation of disabled persons, 183
research, 185
services for offenders, 180
services for young people, 182
social security, 178
staff development, 185
subvention, 185
Sound Broadcasting, 334-6
Special Administrative Regional (SAR), (Oct 28,
Dec 11) 36-7, 43
Sports-
achievements, 364
Adventure Ship, 369
Amateur Sports Federation and Olympic
Committee, 364-5
and recreation, 363
Development Board, 363-4
HK Coliseum, 354
HK Sports Institute, 364
Outward Bound School, 368
Queen Elizabeth Stadium, 354
swimming pools, 367
venues, 353-358
Stamp duty, 68
Stock exchange, 72
Summer Youth Programme, 372 System of Government, 5-18
Taoism, 339-40
Taxes, 65-9
Teachers' colleges, 154-5 Telecommunication services-329-36
Asia-Pacific Broadcasting Union, 335 fax facilities, 330
HK Telecom International Limited, 330 HK Telephone Company Limited, 330 Hutchison Communications Limited, 330 Internet, 328
mobile phone use, 331
New T and T Hong Kong Limited, 330
499
500
INDEX
Telecommunication services-(Cont.)
New World Telephone Company Limited,
330
Office of the Telecommunications Authority,
330
pagers, 331 satellite, 332
STAR TV, 334
Television-
educational, 334
satellite, 332, 334
subscription, 334
Temples, 339
Terrestrial Fauna, 391
Tian Tan Buddha, 340
Topography, 389 Tourism, 314-20
Town planning, 204
Trade-
Advisory Board, 93
APEC, 104
Certificate of Origin, 98
Department, 103
Development Council, 105
documentation, 97
electronic data interchange, 98
Export Credit Insurance Corporation, 107 exports, 54, 56-8, 454-8
external, 93-5
endangered species, 110
imports, 58, 94-7, 454-5
international organisations, 104
marks and patents, 111
Pacific Economic Co-operation Conference,
103
re-exports, 56-8, 454-8
World Trade Organisation, 102
Traffic-
Accident Victims Assistance Scheme, 178-9 accidents, 278
Transport-
administration, 234
Advisory Committee, 234
air services agreements, 255
Air Transport Licensing Authority, 255
buses, 244-6, 474-7
Central to Mid-Levels Escalators, 240 civil aviation, 254-6
cross-border traffic, 235
Emergency Transport Co-ordination Centre,
234
ferries, 244
HK Shipping Register, 253
Kai Tak, 254
licensing, 240-1
Transport (Cont.)
minibuses, 246
new airport access, 237
non-franchised buses, 246, 474-7
parking, 240
planning, 235
Port, 247-53, 265-8
public, 242
Railway Development Strategy, 233
railways, 242-3, 474-7
electric trams, 243, 474-7
Kowloon-Canton Railway (KCR), 243,
474-7
Light Rail Transit (LRT), 243, 474-7 Mass Transit Railway (MTR), 242,
474-7
Peak Tram, 243, 474-7
road network, 236-8
road opening works, 238
safety, 241-2
taxis, 246, 474-7
traffic management, 239
Tribunal, 234
tunnels, 238-9
Travel and identity documents, 396-8
Travel and Tourism, 314-20
Treaty of the Bogue (Humen), 406 Treaty of Nanking (Nanjing), 406
Treaty of Tientsin (Tianjin), 406
Universities-
Baptist University, 158
Chinese University of HK, 158 City University, 158
HK Polytechnic University, 158
University of HK, 158
University of Science and Technology, 159
University Grants Committee, 139
Urban Council-
hawkers, 175
members, 419
public health, 172
Recreation, Sports and the Arts, 350-1,
353-7
role and function, 10
Vessel Traffic Services, 267
Vietnamese migrants, 277, 306, 399-401
Ex-China Vietnamese illegal immigrants, 302 Vocational Training Centre, 140
Water supplies, 228-9, 473
INDEX
Weather-
the year's, 388, 488 forecasts, 393-5
Youth-
Charter for Youth, 186 Commission on, 186
Youth-(Cont.) hostels, 369
music training, 349
Summer Youth Programme, 372
Zoological and Botanical Gardens, 370
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Major Port
Contours/Peak (in metres)
vertical interval 200 metres with supplementary contour at 100 metres,
Dangan
Hei Zhou
DANGAN SHUIDAO
200
869
Sanmen Liedao
Ou Liedao
Sanmen Dao
Dangan
Aizhouzai
Ai Zhou
B
Henggang Dao
Dangan Liedao
NAM
HAI
Sea depth in metres
10
X
Dangan Dao
Er Zhou
Zhiwan Dao
km
Wanshan Qundao
22°00'N-
HONG KONG IN ITS REGIONAL SETTING
Beijian Dao
Jiapeng Liedao
11400
F
Miaowan Dao
Series AR/18/IAS
Edition 2
1997
Cartography by Survey and Mapping Office, Lands Department
(c) Copyright reserved -
114°30'E
reproduction by permission only
F30019700E0
..