Hong Kong General Ch�mb�r of Commerce

GENERAL COMMIITEE

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(Second Vice Chaimwn) (1ti�fJ!JJ=.J$) Mr Victor Li �mlfE91;j: Mr Peter F Barren !I! ��$\;1 Mr J B M Litmaath ?';: .\\'i%1 �f1rliH Mr Liang Xiaoting ��Nf§st!:l: ��e£9C1. DrT K Ann, LLD. JP

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CHAIRMAN'S COMMITIEE :E..$�R1!r MrTony Fung t�;i]<i-f.%4: Dr H Sohmen �iRittH Mr William Fun g. JP ��!iJJ�ltl£ �1r Brian Steven�on jij:f,'j$\;1

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Mr Peter Sutch iiUHl!�':E (Vr'ce Chairman f/f-·JPJ.:£1$) Mr CC Tung ftiJl!hlt�IA: (Second Vice Chairman f/f::.M1:i:.tW) Dr H N Harilela, LLD. JP !:l�J�IH .Mr Jack C Tang f.!flltf-9;;1: Dr Eden Woon �I?HfN!± (Director!!:!!;.) Mr John Hung iJf�!/1�':1: Mr Alex L FYc JWlli!;\'(stlJ:.

Mr Markus F Jebsen t1! �%i

REPORT OF THE GENERAL COMMITTEE<Fortheyearended 31 December. 1 997)

The General Committee has pleasure in presenting its report together with the accounts for the year ended 31" December, 1997.

PRINCIPAL ACTIVITIES The role of the Chamber is to promote, represent and safeguard the interests of the Hong Kong business community.

ACCOUNTS The state of the Chamber's affairs at 31 '' December, 1997 and the result for the year ended are set out in the accounts on pages 24-3 1 .

ASSETS Details of the movements in assets are shown in notes 4-7 and 9 to the accounts.

GENERAL COMMITTEE MEMBERS The General Committee Members who held office during the year are set out on Page I. No Member of the General Committee, or any other Members of the C h a m ber, rece ived any form of remuneration in return for their services, other than normal professional or similar fees paid for services or supplies rendered to the Chamber and no portion of the income or property of the Chamber was paid or transferred directly or indirectly by way of dividend, bonus or otherwise to Members of the Chamber.

INTEREST IN CONTRACTS No contract of significance to which the Chamber was a party and in which a General Committee Member had a

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material interest subsisted at the end of the year nor at any time during the year.

AUDITORS A resolution for the re-appointment of KPMG Peat Marwick as auditors of the Chamber i s to be proposed at the forthcoming annual general meeting.

By Order of the General Committee,

The Hon James Tien, JP

Chairman on 12 March 1998

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Hong Kong General Chamber of Commerce

CHAIRMAN'S REVIEW

T he dramatic economic events on regional financial markets in the second half of 1 997 may have

taken some of the lustre off Hong Kong's greatest year - the year of the historic return of sovereignty to China after 156 years of British Colonial rule. But nothing could overshadow the solemn ceremony of the handover itself, the popular celebrations that followed and the substantial political, economic and social achievements that were the highlights of Hong Kong's transition year.

The historic mid-year return of Hong Kong sovereignty to the Motherland brought the curtain down on more than 1 50 years of British rule. Hong Kong r i g h t l y c e l e b r a te d , b u t i t was a celebration cut short by the need for the new SAR A d m i n i s t ration and the community to focus on coping with the regional economic fallout.

The financial turmoil in East Asia during the latter half of the year under review effectively brought to an end, at least for the short term, 15 years of spectacular, unbroken economic growth for much of the region. Hong Kong could not remain unscathed by such dramatic events.

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lames Tien, Chamber Chairman

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From a broad historical perspective, however, it will be the return of Hong Kong sovereignty to China that the 1997 year will be remembered for by all Hong Kong people, and Chinese people everywhere. It was an historic and emotion-stirring year for the whole community, made all the more important by the fact that the transition from British

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to Chinese sovereignty went so smoothly. The Government of the new Special

Administrative Regional (SAR) of the People's Republic of China may now face some more challenging times than it would have liked. But nothing, certainly not the recent events on global, regional and local financial markets, can extinguish the proud memories Hong Kong people will retain of the year under review.

In my second and final report to you as Chairman of the Chamber, I would like to say what a privilege it has been to serve the Chamber, to serve you, its members, and to serve the whole Hong Kong business community during this important year in the ten·itory's history. Fortunately, 1 can report to you that what was a successful year for the Hong Kong SAR was also a successful one for the Chamber. Like Hong Kong's year, too, the year for the Chamber, was also one of change.

In the first half of the year, our long­serving Director, Mr Ian Christie, retired and his place taken by Dr Eden Woon. I would like to take this opportunity to pay tribute to Ian who served the Chamber so well over so many years. I would also like to formally welcome Eden Woon and

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congratulate him on work he has done in the Chamber since his arrival in May of the year under review. The period has seen many changes within the Chamber, with a re-or ganisation of divisional responsibilities and moves to upgrade both the Chamber's internal resources and its external services to members. Further changes can be expected in the near term future.

members of the SAR Government probably had more of an economic test than they desired in the first six months of the new administration, but they performed with an outstanding skill and professionalism.

Not only did the SAR Government show flexibility and resolve in dealing with

"

SAR and the Mainland in contributing to the financing package arranged by the International Monetary Fund (IMF) for the Thai economy. The contributions made by the Hong Kong SAR, one of the region's key financial centres, and China, its biggest and fastest growing emerging market, sent

a clear and very positive message about their approach to regional economic responsibilities.

In summary, we can all look back with pride at the Hong Kong C o m m unity's a c h i e v e m e n t s during 1997, not least, of course, the successful return to Mainland

"Hong Kong's return to the Motherland is a shining

page in the annals of the Chinese nation." MAINTAINING THE PEG

-President ]iang Zemin sovereignty. We can also look back with great satisfaction at the a d v a n c e s made w i t h i n t h e C h a m b e r i t s e l f , w h i c h a r e outlined i n more detail elsewhere

"For the first time in the history of Hong Kong, we

now have the opportunity to chart our own destiny."

More important from a domestic SAR perspective, of course, ha� been the Government's resolute response to the impact of the regional uncertainties on Hong Kong, including the defence of the linked exchange rate to the US

in this Annual Report.

GOVERNMENT COMMENDED

Before looking at 1997 in detail, however, I would like to take this opportunity to commend the SAR Government on the job it did in reacting to the regional financial uncertainties in second half of 1997. Senior

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dollar and support for both the banking and financial markets. The authorities' finn response dwing the

height of the crisis also played a key role in re-assuring the general public about the fundamental soundness of the local economy.

Whatever the emerging short term challenges, the Hong Kong SAR can face

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Executive, lung Chee Hwa, on his arrival in Hong Kong historic return of sovereignty to

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Hong Kong General Chamber of Commerce

CHAIRMAN'S REVIEW

the medium-to-longer term future with confidence. It can be secure in the knowledge of its own sound economic fundamentals and the re-affirmed desire of its new Mainland sovereign to continue to open to the world and develop its own economy well into the new Century.

Dur i n g t h e C h a m b e r G e n e r a l Committee's annual visit to Beijing i n May, delegates (who included for the first time leading members of the national chambers in Hong Kong) had the opportunity to meet with Premier Li Peng just three months ahead of the handover ceremonies. Although none of the delegates needed re-assurance on Hong Kong's future, they came away with an even greater confidence in the outlook for the SAR and the Mainland economy.

Premier Li expressed confidence in "the smooth transition of power and the continued prosperity of Hong Kong." He t o l d d e l e g a t e s Chi na's c o n t i n u e d economic development would help Hong Kong; that the SAR would remain a major financial, trading and shipping centre; and t h a t as long as the Basic Law was complied with, commercial conduct would continue as normal.

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ECONOMIC REVIEW

As all Members will be only too aware, the economic climate facing the Hong Kong SAR changed dramatically during the year under review, with uncertainties on regional and global financial markets adversely affecting performance in the second half of the year. Growth in the first six months of the year, in the run-up to the all important return of Hong Kong sovereignty to China, was extremely healthy at 6.3 per cent. Inflation remained low by recent standards at under 6 per cent

Confidence about the handover itself, a more rapid growth in the money supply, very active property and equity markets, continuing strong consumer demand and high levels of fixed capital investment all helped buoy the overall economy. Slower growth in external trade in both merchandise and service trade sectors and faster growth in imports than in overall exports did, however, act as a drag on growth.

As the second half of the year began, it became apparent that uncertainties were emerging on regional financial markets. These were initially confined to countries in the south east Asian region, led by the

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devalu a t i o n of the T h a i b a ht and subsequent devaluations of the currencies around the region. Perhaps inevitably, however, the impacts spread around the region, including ultimately to the Hong Kong SAR. As a result. it seems likely that the SAR's growth in the second half of the year slowed to around four per cent, with very slow 2.3 per cent growth in the fourth quarter.

Hong Kong was also affected in the early months of the second half by a downturn in the important travel and tourism sector, after the excitement engendered by the transition to Mainland sovereignty. Reports of speculative attacks on the Hong Kong dollar also led to higher local interest rates, a decline in the share mm-ket and a substantial cooling in levels of activity in the property market.

An inevitable result of these events was the slower overall economic growth in the second half of the year with a consequent impact on business sales and profits and government revenues. Revenue was so strong in the first half of the year, however. and especially in the first quarter, that the Budgetary outcomes for the year were more than in line with

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government forecasts. The real impact of this year's uncertainties on financial markets is likely to be felt i n the new calendar and fiscal years.

SMOOTH HANDOVER

Despite the economic concerns that emerged in the second half of the year, the transition year was one of magnificent achievements and stunning special events of which Hong Kong and all its citizens can be immensely proud. The whole community played a key role in ensuring a s mooth l ead-up to the return of sovereignty, the great success of the handover ceremonies on either side of midnight on June 30 and the positive approach taken in the weeks and months immediately following the handover.

In its broadest sense, Hong Kong post­handover - the Hong Kong Special Administrative Region (SAR) of the People's Republic of China - remains the vibrant, prosperous and "go ahead" place it has always been. If I may paraphrase the words of our Chief Executive, Mr Tung Chee-hwa, the most significant change that occurred as a result of the

handover was that there was no change. It means that - the vicissitudes on financial markets apart - that i t is "business as usual" in the Hong Kong SAR.

The Chamber looks forward with great confidence to its future as a special administrative region of China. Since July 1 , Mainland leaders, including President Jiang Zemin, then Premier Li Peng and then Vice Premier, Zhu Rongji, pledged themselves to ensuring a prosperous future for the SAR under the terms of the Joint Declaration and the Basic Law, and the late Mr Deng Xiaoping's principles of "one country, two systems" and "Hong Kong people ruling Hong Kong" with a high degree of autonomy.

FIRST CLASS LEADER

The SAR's first Chief Executive, Mr Tung Chee-hwa, has emerged as a first c l as s l e ader w i t h a n u n r i v a l l e d understanding o f Hong Kong and its present and future needs and the interim l aw - making body, the Prov i sional Legislative Council of the SAR, has worked well. Arrangements continue to

SAR Chief Executive, Tung Chee Hwa, spoke with Chamber members and guest immediately after

his Policy Address in October. He is shown here with Chamber Chairman, james Tien, and First

Vice-chairman, Mr Peter Sutch.

5

be put in place for elections for the First Legislative Council of the SAR on May 24 this year. Hong Kong's traditional freedoms have been retained and its uniquely attractive business environment kept intact.

In the short time since the return of sovereignty, the Chief Executive has made a distinct impression on the world stage with his visits during the 1997 year to south east Asia and to the United States, where, among his other duties, he had an extremely positive meeting with the US President Bill Clinton. He also met with European Community leaders in Bmssels and British prime Minister, Tony Blair and other British leaders in London.

Mr Tung also made an exceptional impression on the local community with his first Policy Address to the Provisional Legislative Council. In this address, titled "Building Hong Kong for a New Era", the Chief Executive laid down a vision for the future of the SAR which builds on its traditional strengths, but includes some vital new initiatives in business and fi n a n c i a l s e r v i c e s , i n d u s t r i a l development, information technology, education, welfare and health.

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Hong Kong General Cl1<1mber of Commerce

CHAIRMAN'S REVIEW

WORLD BANK-IMF

The SAR also successfully hosted the 1997 annual meetings of the World Bank and the International Monetary Fund - an event which not only brought accolades for the SAR from all those who took part, but helped spread a positive message about Hong Kong to the world. It helped emphasise the fact that the Hong Kong SAR continues to play a vital role in global business. The SAR is today the seventh largest world exporter; it has the world's busiest container port, the world's busiest single runway international airport; it has the world's fifth biggest equity market, and i s probably the world's sixth largest financial services centre (including a major banking and foreign exchange centre).

MAJOR ACHIEVEMENTS

There i s n o u nder-es ti mat ing the beneficial impact the reforms of the Mainland economy and opening up of that economy to the world has had on the Hong Kong economy - and will continue to have well into the future.

In the past decade:

Hong Kong's Gross Domestic Product (GDP) has increased four (4) times to US$ 1 7 1 .1 billion. Per capita GDP has increased four times to almost US$26,300, ranking Hong Kong among the richer "advanced" economies of the world. Hong Kong's external trade has increased almost seven (7) times to US$376 billion, making the SAR the seventh largest global trading economy. China's share in that external trade has increased to more than one­third today from less than 10 per cent at the beginning of the "open door policy" in 1979. As Hong Kong manufacturing has moved to the southern Mainland, manufacturing in the SAR has shrunk to less than I 0 per cent of GDP from more than a quarter in the late 1 970s. Total investment i n China, sourced from or through Hong Kong since 1 979, has reached more than US$70 billion and Mainland investment in Hong

Members of the Provisional Legislative Council are sworn in by the Chief Executive, Tung Chee Hwa,

on 1 July 1997. Chamber Chairman, lames Tien, is in the far left of the picture.

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6

Kong has reached US$42 billion, according to Mainland figures.

In the year under review, the local economy grew by about 5.2 per cent and inflation remained relatively modest by Hong Kong standards at less than six per cent average. The two key components in that growth were a recovery in domestic consumption and continued high levels of capital investment in the SAR's i nfrastructure, including most importantly the new international airport.

CHALLENGES AHEAD

The Hong Kong SAR is set to maintain and enhance its position as a regional and international business centre, a major centre for financial services and a key trading and transportation hub. Having said that, however, when we look ahead, it is also abundantly clear that we have our work cut out for us. The Chamber does, of course, continue to have concerns about the recent currency uncertainties in south east Asia and the impact they have had on the Hong Kong economy and will continue to have as we move into the cunent year.

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The Chamber is also monitoring careful ly the economic trends in the global economy, particularly the outlook for the US and China economies and interest rate trends which will have a direct effect on Hong Kong because of a our direct currency link with the US.

In h i s P o l i c y Address to the Provis i onal Legislat ive Council on October 8 last year, the Chief executive, Tung Chee Hwa set out a vision for the future of the S A R that is going to challenge us all. But it is a challenge that we in the Chamber are only too ready to take up. Since year's end, the Financial Secretary, Sir Donald Tsang Yam-kuen, has given further emphasis to Mr Tung's vision i n the first annual Budget of the SAR. The Budget initiatives were also aimed at giving a stimulus to the local economy and offset the adverse impact of the regional economic crisis.

There seems little doubt that the 1998 calendar year will be a difficult one for local business and the local community. But it will not be a year that will present business and economic problems that cannot be overcome i f we continue to stick to the economic principles which

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have served Hong Kong s o well i n the past. We hope that all Chamber members will join us is making the Hong Kong SAR an even better place for business, a better place for doing China business and a better place for doing international business in the coming year and into the new Century.

IN CONCLUSION

As T have said, the year ahead will provide fu rther chal lenges for the l ocal community and our Chamber. For its part, the Chamber wi 11 continue to work with the SAR Administration to ensure a prosperous local economy and a better overall business environment. The Chamber will also continue to work to improve its services to its members and ensure that it remains the pre-eminent trade and business organisation in the Hong Kong SAR.

As usual, I would like to express my gratitude for all the support I have received from members during my two year term as Chamber Chairman and particularly during the challenging year of transition covered in this annual report.

I would especially like to acknowledge the unwavering support during the year of my two vice-chairmen, Mr Peter Sutch and Mr C C Tung, and the dedicated members of the General Committee. I would also like to thank the Chamber's D i rector, Dr Eden Woon, and all Chamber staff for the dedication they bring to all the work the Chamber does for the local business community.

In parting, I would just like to say to all members that I have every confidence in the future of the Hong Kong SAR and the role the Chamber will play i n that future. Hong Kong has made remarkable progress since the late Paramount Leader, Deng Xiaoping embarked on his historic "open door" policy for the Mainland. I am confident it will continue to make remarkable advances in the future as a Special Administrative Region of the People's Republic of China.

James P C Tien Chairman

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CHAMBER REVIEW

DIRECTOR'S REPORT

T he calendar year 1997 was a year of change for the Hong Kong GeneraJ Chamber of Commerce.

The Chamber changed stewardship, with me taking over in May the Directorship from the very capable lan Christie who moved into the private sector in Hong Kong. Since then, there have been major changes within the Chamber - some visible and some not. But what the Chamber has been trying to do in that time is to be more modern, more relevant, and more influential. Let me explain:

More Modern There has been a complete revamp of the computer system in the Chamber office. C o m m unicat ion h a s been vast ly improved with a total e-mail system. Research and information access is now at the fingertips of our managers to service our members. At year's end, we were halfway toward completing the Chamber homepage.

There was a gradual change in the appearance and content of the Chamber magazine - The Bulletin. It began to

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feature articles of timely concern to the readers and more useful information and forecasts of events to the members. Of course, the evolution is continuing.

A reorganization of the staff took place, with two principal changes: (a) The International Affairs Di vision was renamed the International Business

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Division to reflect its focus on business, and (b) The new Business Policy Division now includes not only the Coalition of Service Industries and the Franchise Association, but it also took over the function of promoting the SME and industrial policy interests of our members.

Finally, new corporate brochures and an updated image were being developed to project a fresh look for the Chamber as we enter into the SAR era.

More Relevant We always remember that the Chamber is a business organization which not only must ensure that the policies of the Hong K o n g g o v e r n m e n t - o r fore i g n governments - are conducive to Hong Kong businesses doing business, but which must also provide information and trade leads to our members.

To do that, the new computer revamp and a whole new attitude and knowledge base n o w h e l p u s bet ter address t h e rudimen tary trade questions of our members. In addition, we continued to include among our programs practical

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sessions designed to help improve the bottom-line of our members.

More Influential The Chamber i s the oldest business organization in Hong Kong, but we began to take steps to maintain its status as the premier business organization in the territory.

To do that, we continued to be a voice on behalf of our members with the Hong Kong government, with the press, and with the legislature. Policy papers, press releases, pol icy recommendations, comments, etc. were issued throughout the year to try to influence policies so that our members enjoy a business­friendly environment in Hong Kong. The Chief Executive's Policy Address, the Budget speech, and key legislation al l saw s ignificant input from the Chamber.

We also sought to extend our reach to overseas and main land C h i n a by introducing a new category of associate membership for overseas and mainland China companies and by increasing the

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n u m b e r of H o n g K o n g - b a s e d international corporations and Chinese enterprises in our membership. We want the Chamber to truly represent the spectrum of businesses in Hong Kong, from multinational to Chinese, from services to manufacturing industry. There has been a special increased emphasis on the Chamber's relationship with Mainland China, now that Hong Kong's sovereignty has reverted to China.

Finally, the Chamber used missions abroad and meetings with visitors here to broadcast the message that Hong Kong remains a vibrant international business city after the Handover.

DIVISIONAL REPORTS As you will see from the divisional reports below, it has been a busy year for the Chamber. Changes have been made, but as with any business, improvements must continue to better serve our customers. In turn, with our members' support, the Chamber can indeed claim to be the premier business organization in Hong Kong.

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9

ECONOMIC AND LEGISLATIVE AFFAIRS DIVISION Hong Kong's historic year of transition and r e t u rn to C h i n e s e p o l i t i c a l sovereignty was a play i n two acts - a year in two halves - both for the local community generally and domestic economic performance specifically. As a result, it was also a year of quite distinct halves for the Chamber's Economic and Legislative Affairs Division.

The first six months of the year was predictably dominated by activities a s s o c i a t e d w i t h t h e tra n s i t i o n , culminating with the ce lebrations marking the return of sovereignty to China on June30-July 1. During this first half of the year, the Division focussed on the transitional issues, especially the interests of its three major committees, covering the economic, legal and taxation aspects of the return to Mainland sovereignty.

The second half was, on the other hand, dominated by the dramatic events on regional foreign exchange and financial markets. The economy of the Special

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Hong Kong General Chamber of Commerce

CHAMBER REVIEW

Administrative Region (SAR) mirrored these events with the economy growing strongly in the first half of the year on the back of substantial community confidence as a result of the smooth transition to Mainland sovereignty. I t subsequently eased in the second balf of the year as the impact of regional events began to be felt on local markets.

The Transition The hectic round of activities associated w ith the departure of the Br i t i sh administration and the creation of the Special Administrative Region (SAR) of the People's Republic of China on July I was expected. The financial crisis that affected much of East Asia in the second half of the year was not. Both events ensured that the Division was kept busy throughout the y e ar pursuing the Chamber's key aims - representing local business interests, promoting economic development and creating business opportuni t ies . Activit ies were not confined to internal Chamber matters, but as the year progressed, they increasingly focussed on responding to a variety of requests from outside interests (including

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the media) on matters related to both the return of sovereignty and the subsequent economic setbacks in the region.

The Divis i on was especially b u sy replying to business and media inquiries on the likely impact of the return of sovereignty and the outlook for the local economy and business i n the months immediately after. To help keep the media informed of business views, the Chamber held a key press conference for foreign media during the hand-over entitled "Hong Kong in Transition: A Business View" . Chamber chairman, The Hon James Tien, first vice-chairman, Mr Peter Sutch, second vice-chairman, Mr C. C. Tung, the Chamber's then Legislative Council representative, The Hon Paul Cheng and the Chamber Director, Dr Eden Woon, made up the panel meeting the foreign media.

Other Events Several other important events during the year also required special comments from the Division. These included the potential local impact of the death of paramount leader Deng Xiao Ping in February, the

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10

outcome of the 1 5th Congress of the Chinese Communist Party and the contents of the Chief Executive, Mr Tung Chee Hwa's inaugural Policy Address in early October. The Chief Economist did many media interviews during the year, both on economic matters and issues related to the return of sovereignty. He a lso gave 42 speeches to outside organisations, both local and overseas and both within and outside Hong Kong.

For the first t ime, too, the Chief Economist accompanied the annual General Committee mission to Beijing in May, which proved to be a timely and informative visit ahead of the return of sovereignty. During the year, the Chief Economist also attended the World Bank­IMF annual meetings, met representatives of several government departments on economic issues and was again involved in the wage determination process with the Cham ber and the Employers ' Federation.

Policy Statements During the year under review the Division produced a range of policy statements and

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research papers aimed at influencing G o v e r n m e n t p o l i c i e s . The m o s t prominent of these was the Chamber's pre-Budget submission to government, which resulted in some concessions in the transitional 1 997-98 Budget. Late in the year, the Division also delivered to Government the Chamber's submission on the 1 998-99 Budget, the first to be produced by the SAR Government. In September last year, the Division also prepared the Chamber's submission to the Chief Executive's Office on his inaugural Policy Address to the Provisional Legislative Council. The Chamber was pleased to see many of the proposals suggested by Committee members included in the Chief Executive's Policy Address.

Other policy papers produced by the Division included the Chamber's wage recommendation for the 1 998 calendar year (a 5-to-6 per cent increase), as well as its submission on the Government's Profits Tax Review and Companies Ordinance Review consultations. The Division also played a role in producing the Chamber's Industrial Policy paper and

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published a range of research documents, including, importantly, a paper on Hong Kong's recent trade performance, particularly trends in cross-border trade and port throughput from the Mainland.

Business Summit Once again the Division helped organise the annual Business Summit, the 1997 Summit being entitled "Hong Kong: 156 years and 156 days" to emphasise the 156 years of British rule and the 156 days of the SAR up to the S u m mi t date of December 4. The Summit once again highlighted the Chamber's economic forecasts for the year ahead and proved t o be particularly timely given the economic uncertainties emerging in Hong Kong as a result of the East Asian economic turmoil in the second half of the year. All speakers were experts in their particular fields and provided an up­to-date assessment of regional events.

As the year progressed, the previous annual Summit also proved to be a high note for the Division with the forecast for the 1 2 months ahead subsequently emerging as particularly accurate for the

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transition year. The annual economic forecast was right on target, despite the dramatic events of the second half of the year. The Division predicted 5.4 per cent economic growth for the 1 2 months (which will be close to the ultimate outcome) and .five per cent inflation (close to the year end result of five (5) per cent, although annual average inflation was somewhat higher at 5.6 per cent). For the 1998 year the Division is predicting four (4) per cent growth and five (5) per cent inflation provided regional financial markets settle down early in the calendar year.

Internal Changes The arrival of the new Chamber Director, Dr Eden Woon, in mid-May, following the retirement of Mr Tan Christie from that position, resulted in some changes in the Division. Apart from a change of name to the Economic and Legislative Affairs from Local Affairs and Economics to better reflect its range of activities, they included some new responsibilities for the Division and the upgrading of its output. The untimely death of the long time editor of The B u lletin, Mr Graham Jenkins in

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The Business Summit - again a highlight of the Chamber's year.

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11

Hong Kong General Chamber of Commerce

CHAMBER REVIEW

February resulted in the Division taking responsibility for production of the magazine and other major publications from the Chamber. The Chief Economist took the positions of managing editor of The Bulletin and Chairman of the Editorial Board. Executive Officer Research, Mr Michael Ho, resigned early in the year and was replaced by Mr Ringo Chan. Later in the year, Divisional senior secretary, Ms Marina Wong was promoted to Assistant Manager in the Business Policy Division and replaced by Ms Luka L'lill. Along with production of The Bulletin, the Division also completed the Chamber's 1997 annual report and replaced its Phonafax service on the SAR and Mainland economies with two new monthly publications, "One Country" ( covering the Main land economy) and "Two Systems" looking at the SAR economy

Committee Activities

Legal Committee The Chamber's Legal Committee had an extremely active year, meeting seven (7) times during the year and discussing a wide range of subjects, with special

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attention being given transitional legal issues. This was particularly the case in the first half of the year when the Committee invited both Ms Maria Tam (member of the Legal sub-group of the Preparatory Committee of the SAR) and Mr David Little (the Government's chief International Law Officer) to brief members on outstanding transitional legal issues.

The Committee was especially interested in the continuity of Jaws through the transition of sovereignty, progress on the localisation and adaptation of Hong Kong laws and cross-border legal issues such as the reciprocal e n forcement of judgements and recognition of arbitration awards. In the second half of the year the Committee paid particular auention to the consultation paper on the Government's Companies Ordinance Review and some controversial judgements in US courts on the standing of Hong Kong companies in that jurisdiction.

As far as Legal Committee membership is concerned, Mr G. J. Terry stepped down as chairman of the Committee early

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in the year after accepting an overseas posting. Mr R.T. Gallie was elected new chairman of the Committee. While the Div ision lost an long-serving and exceptionally able Legal Committee chairman with the departure of Mr TetTy, it was fm1tmate to acquire someone of Mr Gallie's skills to replace h i m . The Committee was also fortunate to acquire several new Committee members during the year, all of them prominent members of the legal community in Hong Kong.

Economic Policy Committee The Chamber 's Economic P o l i c y Committee was also extremely active during the year under review and met six (6) times under the chairmanship of Mr Martin Barrow. The Committee and its Chairman saw one of its pet projects -encouraging the dereg ulat i o n o f government activities - come to fruition with the creation of the Helping Business Programme and the Business Services Promotion Unit within the Financial Secretary's department. The head of this programme, Mr Mike Rowse, was one of two speakers invited during the year to address Economic Policy Committee

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meetings, the other being the European Commissioner, Mr Etienne Reuter.

Apart from monitoring economic conditions during the year, the Committee also contributed to the Chamber's annual Budget submission, its papers on Industry and Competition policies and discussions on the Mandatory Provident Fund (MPF). New Executive Officer Research, Mr Ringo Chan, also produced an important paper on Hong Kong's trade performance during the year, particularly trends in cross-border trade with the Mainland.

Taxation Committee The Chamber's Taxation Committee, under chairman Mr Roderic Sage, was somewhat less active during the year principally due to the slow down i n domestic taxation changes over the transition period to Chinese sovereignty and the creation of the SAR. Three major i s s u e s e s s e n t i a l l y d o m i n ated the Committee's work throughout the year under review. As usual, the first of these was the Government Budget with the Committee preparing the Chamber's taxation recommendations for inclusion

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in its annual budget submission to government, analysing and commenting on the I 997-98 Budget and organising the Chamber's annual "Business and the Budget" review of the Budget contents.

The second was the work done by the C o m m it tee on C h i n a tax i s s u e s , particularly those related to cross-border taxation concerns. In this regard the Committee played a key role in briefing t h e G e n eral C o m m i t t e e ' s a n n u a l delegation to Beijing on important cross­border taxation matters. The third major task undertaken by the Committee in the year under review was preparing the Chamber's reaction to the Hong Kong Government's profits tax review exercise.

In a paper delivered to the Government, the Chamber recommended several major changes to the profits tax system, including a realignment of the profits tax rate with the personal tax rate. To reinforce the recommendations contained i n the s u b m i s s i o n , the Chamber Chairman, The Hon James Tien, the vice­chairman of the Taxation Committee, Mr Kaushal Tikku and the Chief Economist

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met with the Treasury Secretary, Mr K. C. Kwong, to explain the recommended changes.

Outlook Despite the regional economic setbacks in the second half of the year under review, the Division looks forward to the 1 998 year with a moderate degree of confidence and an expected high level of activity in all aspects of its operations. The Division will continue to represent the interests of the local bu siness community, domestically and externally, and with government and other interest groups. In its own activities the Division will strive to achieve the Chamber's aims of becoming more modern, more relevant, more influential, more business­like and more user-friendly.

BUSINESS POLICY DIVISION The Chamber's Business Policy Division was re-organised into its present form in October 1 997. It now integrates the Chamber's work on business policy issues in industry, small-and-medium-sized enterprises, and in services. The focus of the last effort, of course, is the Hong Kong

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13

Hong Kong General Chamber of Commerce

CHAMBER REVIEW

Coalition of Service Industries, a highly autonomous body within the Chamber.

Hong Kong Coalition of Service Industries

HKCSI Committees The CSI committees held a total of 23 meetings in 1997. A wide range of issues were discussed. The following are some examples: WTO negotiations on financial services; financing for small and medium e n t e r p r i s e s ; t h e g o v e r n m e n t t e l e c o m m u n i c a t i o n s r e v i e w ; the feasibility of number portability for mobile phones; and conveyancing scale fees. Other issue included development of accountancy in China; urban renewal; long term housing strategy; balance of Payment statistics for Hong Kong; the impact of direct trade between mainland China and Tai wan ; i n frastructure coordination between Hong Kong and the mainland; and cultural and entertainment venues

The Transport/Distribution Services Committee and Infrastructure Projects Committee were merged to become the

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Transport/Infrastructure Committee. The new Committee held its first meeting on 9 May 1997 and quickly became one of the most active of the seven CSI Committees.

Representation The HKCSI continued to be active in several government advisory committees, including the Statistics Advisory Board, the Smal l and Medium Enterprises Commi ttee and the Services Support Fund Vetting Committee, through its representatives appointed by government. New appointments in 1 997 included the Services Promotion Strategy Group chaired by the Financial Secretary and the Information Infrastructure Advisory C o m m i t t e e o f t h e O ff i c e o f Telecommunications Authority. In both cases the C S T was represented by Chairman Mr Brian Stevenson.

Some twenty position papers were submitted to government by the HKCSI, usually in response to a consultation exercise but sometimes the papers were initiated by the HKCSI. The following are some examples of the papers submitted:

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Response to the consultation paper on the review of the Employees Retraining Scheme The fifth position paper on travel/ tourism, focusing on airport charges Paper on the Manila Action Plan for Apec The Sixth Position Paper on Travel/ Tourism, focusing on developing Hong Kong as the region's capital of cultural and entertainment events

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Promotion of Services The Coalition is a keen supporter of the campaign to promote the service sector launched by the Financial Secretary. The Coalition is, for example, publisher of the quarterly Newsletter Hong Kong: the

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Servicing Economy, with support from the Business and Services Promotion Unit of the Financial Secretary's Office and the Census and Statistics Department. The Newsletter was launched in August 1997 and the second issue was published in November with a theme on financial services.

ln addition, the HKCSI obtained a $ 1 .5 million funding from government to conduct a project to promote management consultancy. The project i s being implemented by the Management Consultants Group formed under the Professional Services Committee.

A key programme i n the services promotion campaign is the Hong Kong Awards for Services, for which the HKCSI is the secretariat. The Awards Scheme consists of five categories, namely, innovation organised by the HKCSI, productivity by the Hong Kong Productivity Council, tourism services by the Hong Kong Tourist Association, c u s to m e r serv ices by the Retai l Management Association, and export marketing by the Trade Development

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CounciL A total of 102 applicants entered the competition. The Awards winners were selected by the Central Judging Panel chaired by the Financial Secretary M r D o n a l d T s a n g . T h e Awards Presentation Gala Dinner was held on 1 2 December 1 997 during which winners recei v ed their awards from Chief Executive of HKSAR Mr Tung Chee Hwa.

China Programme In February 1997, at the invitation of Vice Chairman Mr She Jianming of the China State Planning Commission, HKCSI Chairman Mr Brian Stevenson led a ten­member delegation to visit Beijing. In May the HKCSI jointly organised a Tertiary Industries Training Seminar in Shenzhen w i th the State Planning Commission. Seminar participants consisted of 60 SPC officials from the central government as well as 43 provinces and ci t ies . The HKCSI provided speakers for eight out of eleven speaking sessions.

In October the Coalition hosted a ten­member delegation from the S tate

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The Chamber

helped organise

the first annual

Small Business

Awards ...

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Planning Commission led by Mr Lan S hiliang, Director of the Office of Tertiary Industry. The first from the SPC since the S AR ' s establishment, the delegation visited a range of service industries including telecommunicat­ions, real estate, tourism, air cargo, stock exchange, distribution and the new airport The delegation also called on the Coalition and met with officials of the HKSAR government. The highlight of the delegation's visit was a Conference "Serv ic ing C h i n a: Prospects and Challenges" held on 22 October. The Conference was opened by the Financial Secretary Mr Donald Tsang. The SAR government hosted a lunch hosted during which Mr Lan delivered a keynote speech on the development of China's service industries.

International cooperation The HKCSI attended the XII Conference of Coalitions of Service Industries on 24-25 June in Geneva. The Conference considered issues ranging from new member accession to the WTO, financial services liberalisation, professional services, developing countries, to

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Hong Kong General Chamber of Commerce

CHAMBER REVIEW

preparation for the next round of services negotiations. At the conclusion of the Conference, five statements on WTO accession, financial services, professional services, developing countries and the Round 2000 negotiations respectively were agreed to by the 21 organisations present.

Hong Kong Franchise Association (HKFA)

Promoting franchising in Hong Kong I n 1 9 9 7 t h e H K F A successfu l ly applied for a $2.34 mill ion funding from the government Services Support F u n d to u n dertake a "Franchise Development Programme " to promote f r a n c h i s i n g . T h e p r o g r a m m e comprised various projects including establishing a web site on the internet, conferences, study mission, computer based training, etc. Accordingly, the HKFA Homepage was launched in July 1 997. The key ini t iative of the Franchise Development Programme is the production of training materials and organising of computer-assisted training through the production of a

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CD-ROM. The training material has been completed in 1 997.

In July the HKFA submitted a position paper on promotion of franchising to the Secretary for Trade and Industry, the Director-General of Industry. the Director of the Business and Services Promotion Unit and the Commissioner for Census and Statistics, calling for government support in facilitating the promotion of franchising.

International efforts HKFA Chairman Mr Y K Pang led a study mission to the International Franchise Expo in Los Angeles from 5-1 1 September 1 997. Other than visiting the Expo, the 23-member delegation also heard briefings from franchise experts and operators and conducted on-site visits to several franchisors based in Los Angeles. The event was suppmted by the US & Foreign Commercial Service of the American Consulate General of Hong Kong.

In the same month the HKFA attended the World Franchise Council meeting on

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24 September in Singapore, during the Global Franchising97 Conference and Exhibition.

The Association also received delegations and conducted briefing for retai ]/franchise trade missions from the US, mainland China and other countries. The secretariat handled over 2,000 enquiries both locally and from overseas. Association staff received incoming delegations and visitors and answered enquiries from a wide range of countries including Australia, Austria, Belgium, Canada, mainland China, France, Germany, Greece, India, Malaysia, Philippines, Portugal, S ingapore, South Africa, Thailand, Turkey, the UK, the US and Zimbabwe ..

SME, Industry and Environment

Industrial Affairs The Industrial Affairs Committee took on the responsibility of considering whether there was the need for a definitive government p o l i c y o n industr ia l development in Hong Kong. As a result of extensive consultation within the

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Chamber. a position paper was prepared and submitted to the Chief Executive in August 1 997. In essence, the Chamber argues on the need for government to continue with its approach of "positive non-intervention" while doing more to create an environment conducive to the evolution of Hong Kong into a centre for innovation. Other recommendations in the paper which were reflected in Mr C H Tung's maiden address included the creation of a second board and the increase in govemment assistance to nurture higher technology and value­added industries.

Environment To draw attention to Hong Kong's worsening air pollution problem and to e x a m i n e p o s s i b l e s o l u t i o n s , t h e Environment Committee took o n the issue of Hong Kong's air quality as its core project for 1997. The Air Pollution Sub-Committee was reconvened for the purpose of drawing up a position paper which would was to form the official Chamber line on the issue. Following distribution of the final paper to the SAR Chief Executive, government officials,

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green g r o u p s , taxi and m i n i b u s associations, and other interested parties in August, a press briefing was organised in September to publicise the Chamber's statement on the state of Hong Kong's air. The initiative culminated in a seminar and a luncheon address, the latter by the Secretary for Planning. Environment and L a n d s , M r B o wen Leung o n 1 5 December.

Other acti vi t ies conducted by the committee in 1 997 included comments to a number of government consultative exercises such its Draft Waste Reduction Plan, a Review of Chemical Treatment Centre Charges, and the Review of Trade Effluent Surcharge. A visit to the South East New Territories Landfill was also organised during the year.

Small and Medium Ente1prises (SMEs) The SME Committee continued with its programme of identifying emerging and topical issues and organising information roundtables and training workshops for members on the practicalities and means to coping with such changes. The Committee also held its fourth annual

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Spring Dinner in early March which was once again very we 1 1 recei v ed b y members. With regard to policy matters, the committee was involved in preparing a Chamber reponse to the Consumer Council 's proposal for a regime to promote competition in Hong Kong. As a result, the administration was persuaded to promote competition but not to create a Competition Authority.

Consistent with its mission to raise the profile of smaller businesses in Hong Kong, the committee in cooperation with AT&T Pacific organised Hong Kong's first-ever Small Business Awards. Entries for over 40 companies were accepted and the winners of the Gold, Silver and Bronze categories were presented with their awards on 10 December 1997.

I N TE R N A T I O N A L B U S I N E S S DIVISION

Reorganization This year under review was a busy one for the Division with an increased level of activities and improved services for Chamber members. In order to reflect

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... and the first Awards for Services presented

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here with Henderson Land's, Lee Shau Kee.

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Hong Kong General Chamber of Commerce

CHAMBER REVIEW

more accurately the work of the Division and to meet increasing demands from m e mbers for business networking opportunities, the Division was, in October 1 997, re-named the International Business Division. This has also resulted i n the reorganization of executive responsib i l i ties of staff w i thin the Division.

In line with this reorganization process, a new section known as "International B usiness Information Service" was formed to be responsible for providing members and prospective members with r u d i m e n t a r y a d v i c e , c o n t a c t s , opportunit ies and i n format ion on international business. In keeping with th is change , the " Trade Enquiries Section" was transferred to this Division.

Programmes During the year, the Division continued an acti ve schedule of programmes w h i c h proved usefu l i n ass is t ing Chamber m e m b ers i n ident i fy i n g business and investment opportunities in overseas markets. Some 20 outgoing missions and visits were organized and

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about 200 meetings with incoming missions and visitors were arranged. These meetings were useful occasions for members to establish business c o n t a c t s w i t h t h e i r o v e r s e a s counterparts as well as t o exchange views on the current economic and business situation in Hong Kong.

The Division also assisted in collecting members' views on some trade issues, such as the lobbying for extension of MFN status for China, the issue of double taxation of profits of Hong Kong companies operating in China, EU's anti­dumping measures against certain China made products, etc., and represented these views to appropriate authorities.

Outgoing Missions During the year, the Division organized a high level General Committee Mission to Beijing, which included for the first time Chairmen of some foreign chambers of commerce in Hong Kong. The mission was extremely well received, and the delegation met with senior Chinese Government officials including Premier Li Peng.

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18

In addition, the Division also organized business and investment study missions to the following countries: Denmark, Japan, the USA, Pakistan, the Philippines and cities in China including Bcijing, Xiamen, Guangzhou, Shenzhen and other locations in the Pearl River delta. In March 1 997, the Chamber sent a delegation to Chengdu and Chongqing. This was the first Hong Kong delegation to visit Chongqing after the city was upgraded to a municipality directly under the Central Government.

Incoming Visitors The Division continued to receive a large number of overseas visitors including M P s from the U K and European Parliament. Some distinguished visitors were Mr Boon Wan Khaw, Permanent Secretary for the Ministry of Trade and Industry in Singapore; Dr Julius Parrenas, Executive Secretary of the APEC Business Advisory Council (ABAC); HE Mr Emil Constantinescu. President of Romania; the Rt. Hon. Michael Heseltine, MP, UK; Mr An Min, Assistant Minister of MOFfEC; Mr Gary Locke, Governor of Washington State; M r M Tom,

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Permanent Secretary, Department of Economic Affairs, Government o f Eastern Cape Province, South Africa; A m b a s s a d o r Y S a t o , J a p a n e s e Ambassador to Beijing and His Majesty King Harald of Norway.

Hong Kong International (HKI) In 1997, two groups of US Congressional Staffers and four leading trade and industry associations were invited by the Chamber to visit Hong Kong and South China. The purpose of these visits was to provide vi s i tors wi th a better understanding of the current situation in Hong Kong and its economic relationship with the region. The US staffers were encouraged to convey a positive message to members of the US Congress and the Administration that the unconditional extension of MFN status for China would bring mutual benefits to the US, China and Hong Kong. Some 20 staffers participated in this programme and were very satisfied with the programme.

During the year, Hong Kong International continued to host meetings with visiting VTPs and senior government officials

from overseas countries and to arrange speaking e n gagements and media interviews for HKI "Ambassadors" as part of the effort to promote Hong Kong's image overseas.

H o n g K o n g - T a i p e i B us i n e s s Cooperation Committee (HKTBCC) A 29-member delegation from the Hong Kong Taipei B usiness Cooperation Committee led by its Chairman, Mr Paul Cheng, visited Taipei on 27 and 28 November to participate in the eighth Joint Meeting. The delegation met with its counterpart, the Chinese Taipei - Hong Kong Business Cooperation Committee headed by Mr Kao Chin Yen, Chairman oft he Federation of Industries in Taiwan. The delegation achieved its objectives of developing new trade and investment relations and learning from Taiwan business leaders the ways to develop the high-tech sector. The delegation also took the opportunity to promote Hong Kong's post-1997 image in the business community in Taiwan. A Memorandum of Cooperation was signed pledging further cooperation between the two bodies. More than 1 20 Taiwan premier

Prominent speakers at Chamber functions during the year, included : Chief Secretary for Administration, Mrs Anson Chan (centre); fom1er UK Foreign Secretary, lord Hurd (top right); US Consul-General, Mr Richard Boucher (top left); Preparatory Committee legal expert, Ms Maria Tam (bottom right); and MtT Professor Richard lester (bottom left).

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19

business leaders attended the Joint Meeting.

Pacific Basin Economic Council -Hong Kong Committee A large delegation from PBEC-Hong Kong Committee led by its Chairman, Dr Helmut Sohmen, attended the 30th International General Meeting of PBEC in May 1 997 in the Philippines. Mrs Anson Chan, the Chief Secretary, in a well appreciated keynote address, spoke about Hong Kong's transition and of the confidence of the people of Hong Kong in its future. During the Manila meeting, the Hong Kong Member Committee was awarded the privilege of hosting the 32nd International General Meeting in Hong Kong in May 1 999.

At the Steering Committee meeting held in Whistler, British Columbia, Canada in November 1 997, PBEC approved an important trade report done by the PBEC Hong Kong Committee. It calls for a range of specific recommendations, including the elimination of non-tariff barriers in areas such as telecommunicat­ions, investment, insurance, tourism,

Hong Kong General Chamber of Commerce

CHAMBER REVIEW

retail trade, transport and business/ professional services, and to elimi nate excessive documentation and streamline cu.stoms procedures. The Report was extremely well received at the meeting and i ts recommendat ions w i l l be presented to government officials and business decision makers in the region in the coming year.

Other Activities During the year, the Division provided secretarial support to trade area committees and Working Groups. It also organized n u merous meetings and roundtable luncheons at which speakers were invited to address participants on business opportunities in Hong Kong's major export markets and to exchange views with members on a wide range of business issues.

OPERATIONS DIVISION The Div is ion , formerly called the Industrial and Corporate Affairs Division, was also reorganised during the year in order to focus more sharply on the effectiveness and efficiency of Chamber operations. Two main objectives were

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set for the Division - first, to become more international in terms of membership, including Mainland related companies; and the second to become more modern i n terms o f communicat ion with members. The Division is responsible for four l i n e fu nct ions : Membership, I n formation Tec h n o l ogy, H u man Resources and Admini stration and Finances.

Membership This year in review was a difficult one both in terms of recruiting new members and retaining existing members. This was mainly due to the cautious sentiment on business outlook and the reduced demand for certificates of Hong Kong origin due to the relocation of manufacturing capability in the past decade. By year­end, membership stood at 4, 1 89.

Towards the end of the year, several initiatives were put in place to improve the Chamber's membership work. These included the introduction of Mainland A s s oc i ate Membership , O v erseas Associate Membership, Member-get­member and Staff-get-member initiatives.

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20

On the member relations side, the Chamber runs two programmes: the 3288 Dinner Club and the Chamber Golf Club. They were both enthus iast ical ly supported by members. The former attracted about 80 participants to each of its monthly dinners, while the latter entertained about 30 golfers each outing.

The Division produced the 362-page Membership Directory 97/98 in July which contains updated information on members. The Directory was distributed to all members, foreign trade associations and trade commissions i n order to promote trade opportunities for members. The Division is also working to put more comprehensive member information in the Chamber Homepage in 1 99g to help members seeking international buyers.

Information Technology The head office computer system was almost entirely replaced late in the year to position the Chamber for the IT demand of tomorrow's environment. The Division started with downsizing the Membership Database from mainframe to a PC based system. All staff were then equipped with Pentium PCs, coupled with the installation of new LAN and Web servers and a dedicated leased 1 i ne, to enable e-mai l ing and i n formation retrieval on the web for all staff.

The Division plans to formally launch the Chamber Homepage in April 1998 to encourage freer information flow and timely feedback between members and international traders. New overseas and mainland members will no doubt be frequent users of our web-site. The upgraded IT capability now allows the two-way communication between the Chamber and its members through the IT super-highway and hopefully will reduce mailing and faxing in the future.

Human Resources The Division also manages internal personnel matters and monitors Hong Kong-wide labour, manpower and human resources issues.

Under the auspices of the Human Resources Committee, the Division conducted two important surveys in the year - the Labour Importation Survey in June and the highly publicised Local Education 'Output' Survey in August. Results of the latter were found to be very

useful by the SAR Government and the higher education institutions.

Seminars were organised respectively on Equal Opportunities Legislation and Open Employment to keep members abreast of the latest HR issues. The Division also organised 46 training courses for members in the year providing a broad range of subjects on languages a n d m anagement s k i l l s . On the community service side, the Chamber staff took part in blood donations, dress casual day and the Trailwalker. The Chamber continued to be the sole sponsor of the police's Good Citizens A ward and a j o i n t s p o n s o r o f t h e R o y al C o m m o n w e a l t h S o c i e t y E s s a y Competition.

Administration and Finances The Chamber finances remained strong and healthy throughout the year even with a s low er growth i n Hong Kong's economy. As shown i n the Chamber Annual Accounts, we had an operating surplus of $84,777,000, thanks to the support of members and the hard work of staff. The Chamber disposed of the former Director's quarters in the year and used the proceeds to acquire the remaining half floor of its head office, providing a steady income and potential space for any future growth.

The Division manages two Chamber Race Boxes for members' enjoyment, one in Shatin and the other one at Happy Valley. Some 75 races during the 1 996/ 97 season attracted 4,3 1 3 members and guests to our Boxes. Apart from performing the usual heavy load of translating, desk-top publishing, printing, mailing and faxing Chamber c i r c u lars , corre s p o n d e n c e s , a n d publications to more than 4,000 members every week, the Division also organised 1 2 roundtables, seven training workshops and two local visits for members to enhance their administration skills and knowledge.

CERTIFICATION DIVISION

Satisfactory Result This year in review was again a busy year for CO issues. In 1 9 9 7 , the C h a m b e r i s s ue d 3 1 8 , 3 0 6 t rade documents. Once again, staff members a i m e d to p r o v i d e a n e ff i c i e n t certification service. The electronic CO

pri n t i n g service has been further enhanced and about 45 percent of all COs received are now printed by the Chamber. Substituting the cumbersome cash payment, the smart card payment system has been well received. By the end of the year, over 330 smart cards had been issued. Over 15 percent of all CO transactions were conducted through the smart card payment system.

eo processing time including the time required for CO correction process has also been further reduced and the Chamber now provides a prompt half-day service in all its nine certification branch offices (United Centre, Hong Kong; Swire House, Central, Hong Kong; Capitol Centre, Causeway Bay; Ocean C e n t r e , T s i m s h a t s u i ; E a s t p o i n t Commercial B uilding, Tsimshatsui East; S i l v ercorp In ternat iona l Tower, Mongkok; Kwun Tong Harbour Plaza, Kwun Tong; Nan Fung Centre, Tsuen Wan and Cheung Sha Wan Plaza

·, Lai Chi

Kok).

Investigation To uphold the integrity of the certification system, over 8,512 consignment checks on certificate applications were made. Of the total, 396 applications were refused and 28 applications were referred to the Trade Investigation B ureau of the Customs and Excise Department for further investigation.

Certification Co-ordination Certification policy and issues are mainly dealt with by the Certification Co­ordination Committee on which the Chamber is represented by Mr. W. S . Chan, the Assistant Director of the Certification Division. Six meetings of the Committee were held during the year. Major policy matters discussed included EDI CO, the lifting of CO requirement for export of textiles to the U.S.A. and reimbursement of eo fees to the Government.

ATA Carnet The Chamber is the sole approved body in Hong Kong for the issue of ATA carnets perm itt ing trade sa m pIes, exhibit ion goods and professional equipment to be taken across national frontiers without payment of duty. In 1997, 2.284 carnets were issued, which covered goods valued at $2.051 million.

21

During the year, 335 disputes arising out of the functioning of the carnet system were settled. Among these disputes, 34 cases resulted i n payment of customs duties.

CHAMBER SERVICES LIMITED The company i s a whol ly-owned subsidiary of the Chamber. Its operation concentrates on developing services and providing commercial opportunities for the business community of Hong Kong. During the year under rev iew, the company had three main operations.

Chamber Business Centre Business did not pick up during the year under review. The decision was therefore made to close the Centre i n early 1998. This was m a i n l y d u e to the l o w occupancy and inadequate utilisation of the Hong Kong Trade and Exhibition Centre coupled with an inconvenient location.

Exhibition/Conferences/Seminars The first " Hong Kong Products & Services Exhibition • Shopping Expo '97" was launched in January of the year under review. It was a very successful event with 1 00 exhibitors and 200 exhibition stands, attracting over 80,000 v i s i tors for the three-day s h o w . Chamber Services also spent much of the year organising the second Shopping Expo held between 1 5 to 1 8 January, 1 99 8 . During the year, Chamber Services also organised over twenty local and international seminars and conferences ranging from fifty to four hundred delegates. Some were planned and organised by the company and others w e r e m a n a g e d for other organisations.

Bulletin Advertising Sales During the year, the company also took the role as an advertising agent for the B u l l e t in , the Chamber's monthly magazine. Sales turnover was up by 1 8% and commission to an outside agent was saved.

Eden Y. Woon Director

Hong Kong General Chamber of Commerce

HONG KONG PROGRESS

Hong Kong O'·erall Trade (HKD million}

Imports

Domestic Exports

Re-exports

Total Exports

Total Trade

Trade Surplus I (Deficit)

Trade Gap as o/c of Imports

Imports: Major Suppliers (HKD million)

China Japan

Taiwan

U.S.A.

Singapore

S. Korea

Imports: Major Products (HKD million}

1997 1,61 5,090

2 1 1 . 4 1 2 1.244,539 1,455.949

3,071,039 -159,141 (9.85%)

1997 608,372 221 .646 124.547 125.381

79.186 73,226

Electrical machinery, appliances etc.

Telecommunications. recording equipment

Textile yams. fabrics, make-up articles & etc.

App.1rel and clothing etc.

Mise. manufactured articles

(mainly baby cam ages. toys, games & sporting goods)

Office machines data processing

Domrstic Exports: Major Markets (HKD million)

China

U.SA

Gennany

Japan

U.K.

Singapore

Domestic Exports: Major Products (HKD million)

Apparel and clothing etc.

Electrical machinery. appliances etc.

Mise. manufactured articles

Photographic equipment, watches I clocks Textile yams. facbrics. make-up articles & etc.

Office machines I data processing

Employment

Manufacturing

Finance, insurance, real estate & business services

Wholesale. retail and trade

Restaurants and hotels

Building and construction

Civil service

Total labour force

Unemployment rate (%)

Underemployment rate ('il-) Labour participation rate (%)

Es lablishments

Manufacturing Finance and business services

Sep. '97

309.160 41 5.943

805.958 220.604

78.106 1 84.223

3.237.000

2.3 LO

6 1 .9

Wholesale. retaiL tr.tdc. restaurants and hotels

Building and construction (sites)

1996 1,535.582

212.160 1,185.758 1,397.917 2,933,499

-137.665 (8.97'ir)

1996 570,443 208,239 123.202 121.058

81.495 73,302

1997 219.701 152,377 125,460 1 16.277 1 15.497

100,029

1997 63.867 55,073 10.321

10.641

10.723

8.404

1997 72,228 32.958 17.397 14,488 12.655 !0.425

Sep. '96 327A64

391.151

822,9 16

223.625 76,580

183,819

3.094.700 2.5 L5

61.5

Change 79.508

-748 58.781 58.032

137.540 -21.476

1995 539.480 221,254 129.266 l l 5.078

78.027

73,268

1996 195.942 14 1,011 127,730 !05.419 108.193

81,382

1996 61 ,620 53,860 1 1.388

I 1 .335 10,597

10,009

1996 69,447 30.357 18.092 15.084

136.963 13.090

TRADE

%

5. 18'k -0.35% 4.96'ir 4.15<:1-4.69'7<-

15.60'7r

1994 42,054

195.036 107.310

89,343 57.551 61.968

Change %

12.13% 8.04'k

-1.78'k

!0.3Q'k 6.75'7<

22.91%

1995 63.556 6 1.250 12,178

1 1.877

10.941 12.236

Change % 4.00'11-8.57\l­

-3.84'7< -3.95%

-90.76</r -20.36%

Trade Growth (Real Change)

35 30 25 20 15

10

Imports or Goods ln1ports of Goods Exports or Good.s lmports ufScf'\·ke..� EKpnrt.s ofScrvlrt.-s

5

o i--�--����==�--������� -5 1�87

-10

-15

Re-exports: Major Markets (HKD million}

China

U.S.A.

Japan

Gcmmny

U.K.

Singapore

Re-exports: l\·lajor Countries of Origin ( HKD million}

China

Jap.1n

Taiwan

U.SA

S. Korea

Singapore

Re-exports: Major Products (HKIJ million}

Mise. manufactured articles

(mainly baby caniagcs, toys, games & sporting goods)

Electrical machinery and applicances

Telecommunication, recording equipment

Articles of apparel & clothing accessories

Textile yams, fabrics. make-up articles & etc. Office machines I data processing

1997 443,878 261,372

77.724 46.336 39,066 29,385

1997 723,416 133,825 83.341 62.633 39.672 27.869

1997 162.642

136.784 1 1 6,801 106.669 100.395

86,253

1996 41 7,752 242,342

80.154 47.216 35.991 28,388

1996 683,514

129,292

82.177

62.192

38.049

25.464

1996 149.528

123.764 1 1 5.959 100.524 95.719 70,757

1995 384.043 230.997

70,08 1 45,770 32.257 26,0 1 1

1995 636.392 130,512 83,307

55,636 37.615 21.678

Change % 8.77'k

10.52%-0.73'k 6.li<Jt 4.89<;<

21.90<;(

ECONOMIC STRUCTURE

Sep. '95 386,106 375,366

81 1,678 219.193

65,821 181 ,084

3.033,400 3.6 2.3

62.2

Scp. '97

26.397 47,65 1

183,746 1 . 142

Sep. '94

438.400 361 ,072

820.528 230,665

60.392 180,085

2.974,000 2.3 1 . 1

62.5

Nominal Wage Indices (Scp. '92 = 100) All selected occupations

Manufacturing

Wholesale. retail, tmde, restaurants & hotels

Transport scf\•ices Financing. insumncc, real estate & business services

Personal services

Mar. '97 142.4 138.1 142.3 141.2 149.7 143.7

Real Wage Indices (Sep. '92 = 100) All se lee led occupations

Manufacturing

Wholesale, rctail. tmdcs. restaumnts & hotels

Transport services

Financing, insurance. real estate & business services

Personal services

Mar. '97 103.9 100.8 103.9 103.1 109.1 104.9

Sep. '96

27.316 46.270

183.291 1.143

22

Sep. '95

3 1 . 1 1 4 45.769

184.532 1,162

Sep. '94

34,068 48,148

19!.336

1,104

Sep. '96 137.6 135.0 136.4 139.9 143.2 141.0

Sep. '96 102.8

100.8

101.9 104.5 106.9 105.3

Mar. '96 134.3 129.3 134.5 132.4 141.5 140.1

Mar. '96 103.6 99.7

103.8 102.2 109.2 108.1

FINANCE

Dunking (at month end) Dcc' 97 Dec' 96 Government Revenue & Expendilure ( H KD milliO!t) - General Revenue Account

No. of licensed banks (oper•ting) 180 182

No. of restricted licensed banks 66 62 Revenue Expenditure Surplusi(Deficil) No. of DTCs (operating) 1 1 5 124 1991 - 92 101.456 93.401 Money Supply M I (HKD million) 208.100 190,471 1992 -9.1 120.781 102.025

Money Supply M2 (HKD million) 2,744.590 2,266.101 199.1-94 143.900 121 .040 Money Supply M3 (HKD million) 2.827.020 2,347,215 1994 - 95 150,580 141 .330

Total bank deposits (HKD million) 2,599.255 2,433,)32 1995 -96 153,194 I 55,857 Total loans & advances (HKD million) 4,121.714 3.913.258 1996 - 97 173.857 151.932

- to finance HK's visible trade 172,337 165.314 1997 - 98 (Budget) 274,600 197.700 - to finance merchandising trade not touching HK 20.663 19.979

- other loans for use in Hong Kong 2.040,986 1,635J35 Exchange Ralc Index (Oct. '83 = 1 00) Dec' 97 June' 97 - other loans for use olllside HK 1 .839,962 2.052.056 Trade Weighted (Import & export) 136.4 127.1

Hong Kong Dollar Prime Rate 9.50o/c 8_50Ck SDR 10.487 10.765

Stock Exchange Performance Price lndicalors 1997

(atmomlt mt!) Dec '97 Jun '97 Mar '97 Dec '96 Composite Consumer Pncc Index 5.HW Hang Scng Index (July '64 = I 00) 10.722.HO 15.196.80 12.534.30 13A51.50 Consumer Price Index (A} 5.70'k

- Fintince 14.15H.IO 18,334.10 13.984.90 13.808.90 Consumer Price Index (B) 5.80\l:

- Utilities 12,283.40 13.422.20 10,230.10 9_g92.30 Hang Scng Consumer Price Index 6.10\t

- Proper1ies 14,g39.10 25.017.90 22.730.30 26.376.40

- Commerce and industry 6,482.50 10.400.40 8.849.10 9.972.90

Hang Scng China Enterprises Index 722.90 1.015.90 965.60 9S0.60

(July '94 = 1 ,000)

Monthly turnover (HKD million) 172.444.60 398.969.70 194.531.80 160.014.80

OTHER INDICATORS

Electricity Consumption (Terajoule) 1997 1996 1995 Building Commenced ('000 sq. m) 1996 lndu"rial 18.965 19,934 20.222 Residential 1.009 Commercial 67,849 64,465 59.908 Commercial 999 Domestic 28,934 29,194 27.063 Industrial 530 Total 1 18,088 1 15,790 1 1 2.817 Total 2,914

Gross Domestic Product (HKD million) Molor Vehicle Regislralions (No's) 1997 1996 1995 1997 1996 Total licensed 500.228 475.1 15 466.068 GDP - a1 current pncc 1,327,000 1. 195.)00

- new registrntors 62.807 37.469 38.520 GDP - at constant (1990) price 834.560 79H.OOO

Private cars 314.833 293.381 285.467 Private Consumption 806.030 71 H.800

- new registrators 43.054 22.203 2.1.257 Government Consumption 1 14.567 106,100

Fixed Capital Formation 450.261 365,500 Telephone Lines - No. or working lines ('000) 1997 1996 1995 Merchandise trade balance -163.519 142,000

Residential 2,089 2,028 1.966 Service trade balance 1 1 2.528 130.100 Business 1,508 1.374 1.288 Chan£e in invenlorics 7,162 16.900

- Fax 336 308 272 Per capita GDP- constant ( 1990) HK$ 128,352 126.451

Total 3,597 3.402 3.252 Per capita GDP - current price H K$ 204.092 189.402

GNP- at current market price n.a. n.a.

Tourism 1997 1996 1995 Faclor income inflow n.a. n.a. Incoming Visitors (No.) 10,406.261 1 1 .702.735 10.1 99.994 Factor income outflow n.a. n.a. Visuor Spending (HKD million) 69.946 82.462 72.939 GNP - at constant (1990) price H KS n.a. n.a. Occuptiney Rate - Hotels (Average) 72t;( R8'K 85'l- Per capita GNP - current price HKS n.a n.a.

250,000 Per c.apitu Gl>PCHK$) 16

\ 14

12

tO

t> 8 ·-

6 I . -·

4 I . ./

2

0 ._;r;;.� ;t-{' ;t- """" {' ,q:

/

(Frl'mth of GDP� Jnnatlon. CPI(A}

........ _ . ..�

/'· CJ-.I(A) / '\ / ·,, '

�"� t"t1A 1 Of'

I ' I Best LendinA Rote , _, ........ , ,,..._.-., ,_/\, I i \ ....... · i

� GOP�"'-/ � - \_, .

I

r i ·,

�'b� .... �� � '" .... � .... � .... � .... -:;-fl' .... � ... .... � ... -$>"' -$>"' .... �" .... �" .... �"' -$>"' .... �"' .... �-- .... �--

23

21H),tH)()

1�0�000

• 100.000

� � • �o.ooo

" a ia 81 j � � �

8.055

18.756

22.860

9.250

-2.663

21.925

76.900

Dec' 96

125J

1 1 .1 24

1996 1995

6.30\l- 9.10'k

6.001< H.7W

6AO'k 9.20'k

6.60'k 9.60\l:

1995 1994 688 545 670 413

457 752

1 .974 2,261

1995 1994

1.084.600 l.OIO,H85 762.000 727.506

652.900 592.665

95.300 83,658

326.200 301.112

- 151.579 -84,414

I 13.346 96.601

48.500 21,263

m.781 120.540

176.178 167,493

n.a. 1 .012,585

n.a. 374.017

n.a. 366.149

n.a. 732.537

n.a. 168,353

I

� i!! j '§

Hong Kong General Chamber of Commerce (Umili'li by Cunralllee)

CONSOLIDATED ACCOUNTS

As at 31'1 December 1997 (expressed i11 Ho11g Koug dollars)

AUDITORS' REPORT TO THE MEMBERS OF THE CHAMBER

We have audited the accounts on pages 24 to 3 1 which have been prepared in accordance with accounting principles generally accepted in Hong Kong.

Respective responsibilities of the General Committee and auditors The Companies Ordinance requires the General Committee to prepare accounts which give a true and fair view. In preparing accounts which give a true and fair view it is fundamental that appropriate accounting policies are selected and applied consistently, that judgements and estimates are made which are prudent and reasonable and that the reasons for any significant departure from applicable accounting standards are stated. It is our responsibility to form an independent

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w, :z"" )lt £ 31 1ll fl<J � § 0

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!*it fi � fHit �

opinion, based on our audit, on those accounts and to report our opinion to you.

Basis of opinion We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Society of Accountants. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the General Committee in the preparntion of the accounts. and of whether the accounting policies are appropriate to the Chamber's and the group's circumstances, consistently applied and adequately disclosed. We planned and perfimned our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with

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���am&�E�lliW · ��M��*«5

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IJ\ ;k: 1<: 1'f I*� ft 1 1 \ tl' J!M {�� ,l'& fl9 b! JhJ ,\11 j)� o {E tlii u�•�2�� · �fl���-hl� § �M�

�����-��-ft o �flffi0 · ����

CONSOLIDATED BALANCE SHEET

sufticient ev1dence to give reasonable assurance as to whether the accounts are free from material misstatement. In forming our opinion we also evaluated the overall adequacy nf the presentation of information in the accounts. We believe that our audit provides a reasonable basis for our opinion.

Opinion In our opinion. the accounts give a true and fair view, in all material respects. of the state of affairs of the Chamber and of the group as at 3 1 December 1 997

and of the group's surplus and cash tlows for the year then ended and have been properly prepared in accordance with the Companies Ordinance.

r : 1 KPMG-Signed KPMG Peat Marwick Certified Public Accountants 1 2 March I '!9�

• * � � � - �Q � Ywm r - � ft w � *

W o

fldU�n<J.tE:5;1, · ,\b:� HI� I I !.E L:J.ifJVI, �ilE-� il'.q 'i-]

1t 1 9�17 "'' 1 2 rl :n R !iffi1'.l.' ll0'r09l1HfiHk.i)l.&

i:ii£ M\ R i l :""�!'l.itr'r'� fnli!.i&.!ll i::iU�� · ·lHl"i!!!\ ( i� ;i]f� )91/} 2H'� �� :p� 0

I '19B 'I' 3 JJ 1 2 r.l

$ 1'1'17 � 12 f! .11 F::f U:J.#HI!'.f/iJJ! As <11 31" December 1997 (expressed in Honr: Konr: dollars)

Ui!�ftff

;lrl:ili�fi

JfJ�ft�J!I!i'fJ!I! (I'.J�j1r{llflfil

iitib'fii�Ji �\!tlH':i�Jli!J\IH"' ff!!WUll: ffi fHXf.fi mrr &.JJI.itttTt-

illtfJJiHi� J !llH-tm:nx&(!!ll�l 'll'l-ll ffiiji:f"r'l\' �Jfi

Fixed assets

Unlisted investment

Marketable securities managed by investment manager

Staff housing loans

Current assel,'; . Accounts.\vitn investment manager Debtors and prepayp1ents Cash at bahk and in

. hand

Current liabilities Creditors and accruals Subscriptions received in advance Taxation

24

Note

llfi tl 4(a)

6

7

8

9

lO(b)

1997 $'000

156,076

33,573

6,000

3,461

7,309

16. 130

2o,9oo

-�?:����2

14,285

13,645

357

28,287

194,262

1996 $'000

69,200

36,626

5, 239

0,709

15.()89

21.o:n

_!�����-�

1 2,4 1 8

10,937

23

23.378

109,485

-��ifi)t t.ili•J�l*m 1 ¥Jt ' iHr m:r!l l

ft Ei'i :tH�t ;U g;.: !<i'li if: 12 J-J 31 R U'Ji/E'/W.fi.tJ'tJ

:W-J: rlH!!:fi

lh�fiSJ!I!i'fllltiHifrtiill�

�Hll: 'rt�'l.J'I!Il!H"' Jl!!l4'0Hfi H .fJ:Jtt �n &lll.1f.t-lit'F

Jl!!.l11 111t�J:&ll!\li!H�ffl m4lci1T't'i f�UJ'i

·��1fift-llrli'J�mm t ¥JiM7,i�Mil

ti; {'; fi � ft ftt :& $- 19971F 12 JJ 31 fJ WJIH!flif:ff.J

CONSOLIDATED BALANCE SHEET (continued)

General fund

Apprm·ed hY the General Commiuee on I 211' March I 998

The Hon James Tien,JP Chairman

Note

Ill� tt

Peter Sutch Vice Chairman

Eden Woon Director

Price Waterhouse Treasurers (Certified Public Accountants)

The notes on pagc.:s 27 tn 3 1 form parl of these accounts.

BALANCE SHEET As at 31" December 1997 (ex{lressed in Hon)i Krmx dollars)

Fixed assets

Investment in subsidiary

Unlisted investment

Marketable securities managed by im·estment manager

Stall housing loans

Current assets

Accounts with in vestment manager Debtors and prepayments Cash at bank and in hand

Current liabilities

Creditors and accruals Subscriptions received in advance Taxation

General fund

Apprm•ed hy Jlu� General Commillee on 121JJ March 199H

The Hon James Ticn, JP Chairman

Note

i!tt tt 4(b)

5

6

7

8

9

10(b)

Peter Sutch Vice Chairman

Eden Woon Director

Price Waterhouse Treasurers <Certified Public Accountants)

The notes on page� 27 to 3 1 form part of these accounts.

25

1997 $'000

194,262

1997 $'000

155,889

885

33,573

6,000

3.461 6.147

14.489

24,097

-�����:t.�

1 2 , 1 8 1 13.644

357

_}_��!�-� 194,262

1996 $'000

109,485

1996 $'000

67,793

4,326

36,626

5.239 5.996

1 3 . 229

24,464

133,209

1 0,279 10,937

23

_ } _�!�� 11 1,970

Hong Kong General Chamber of Commerce (Limited by Gunrmrlee!

CONSOLIDATED ACCOUNTS

As nt 31'1 Decem/ler 1997 (expressed irz Hong Kong dollars)

�-A-l&1i:�U� ffiH:,· 1!1!17 f.F I '! Jf 31 R IPlifl'l/ftJ·Ji:J

ll!c.A

Jtlll

0.'1'1 ��'1'1 fiJ.'i>!. IHJ: jirJ

tll W :tf 1tY � �� iifr i�H-:1 I'Ll\ thilU&IU\ #l�l&A lil.�£MI

/1.\W 1M�5<: lliHJH'tlll �m 0�&4H.:X

�-fiJJl�mt'ii!\1� lttJf /997 if. /'! H 3/ /:1 lt:l. i/§'1/ff:/iJT I

ttffll1:ftt&Mtff�m

et& .frJ.\i!. & !.u:.H

'f#.Jr( e�-trJi�fil.

ttffm� P�I1A�i:EW� ��'11 A :tf fl!� J!. 11 H1Htll1 � IR .'l:l l'l L'�ii'rt� tlil!Hf f\"i�Jf

��lilll�'�Hl1�JfiJ.rlt t (�1>)

I n I H (I'�.JJZ1£llt.JJZ�1rfn�

CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT for the year ended 31 Decem her /997 I Erpres.\"ed in Hong Kmr[!. dollars)

Income Members' subscriptions Fees Interest and dividends Surplus on disposal uf marketable securities Publications and promotion Rental i ncume Exchange difference

Expenditure Staff Office Services Depreciation Subscriptions and donation>

Operating surplus before exceptional items

Exceptional items

Surplus from ordina•·y activities before taxation

Taxation

Surplus after taxation

General fund brought forward

General fund carried fm'ward

The nocc� on page� 27 w J I form part of thc�c accounb.

Note i!fl il

1 1 12

1 3

14 15 1 6 1 7 Ill

IO(a)

1 9

CONSOLIDATED CASH FLOW STATEMENT ji>r the year e11ded 31 December /997 (Expressed irr Hr m!( Kong dollars)

Net cash inflow from operating activities

Returns on investments and servicing of finance Interest and dividends received

Net cash inflow from returns on investments and senicing of finance

Taxation Profits tax paid

Investing activities Purchase of fixed assets Purchase of marketable securities Sale of leasehold property Sale of fixed assets Sale of marketable securities

Net cash outllow from investing activities

Increase/( decrease) in cash and cash equivalents

Cash and cash equivalents at 1 January

Cash and cash equivalents at 3 1 December

26

Note ut n

(a)

1997 $'000

15,770 4 1 ,989

3.582 3.342 3. 136 1 .647

143

--�?��9.?

42.095 9.768 2.896 6.793

86

--�!���-� 7,971

85,230

453

84,777

1997 $'000

.... ?���-�

( 1 19)

(93.679) (36.066)

77.259 1 0

42.461

1,041

1996 $'000

1 5.3 1 1 4X,747

2.3% 1 . 1 53

993 433 LH

69,166

40.4(13 10.X63

2,746 4.45 1

1 94

5!1,717

10-449

10,449

128

10,321

99,164

109,485

1996 $'000 8,959

2,080

2,0!\0

( 1 13)

0.772 ) (35,856)

66 26.930

( 12_632)

( 1 ,706)

15,089

i* � :!Jl1i: mt $�i 1< IIH itl: 1/X.t!" 1'1'17 If 1:! fi :il tJ UY.f!Ji/ff,i5,t]JJ

(a) 1t·ffi'!l!ffrf'J®mtfitllff!ll\1it:VH'#lJ/.·;Mkl\!j;M-¥.1.M::tf ����

t'H'it ;':i· :!R fHJiff} A(JI'1: N. 1FJ h'� ifr. tl: 1'1 ffl �V.(} :!R t::Ui.l\ E W£f•J.(;J. &�r flJ 11: 1'llld ;j! \'UMl� \MU I I I::L!� ' .'1 : � 1i ffi � MJf1!} (l� Ml itt Jbl ;.'t: 'tU[ lir flf !M ;£ 'CUi': Jd& HI� �;\\: H T1i 1'1-'WrJ::f\!lllll t'l: 'ti�i!IJ'll�f"jj,L!.-· I !jl,'gJJII , W�ltt��t.::.: &ffi 11!\M-rJ:il'itm WNHP<-�J.: &��:;;J-t'c fllll'lllll ffl41tfr t'i.J<il l!u

Jl!i El lift ill: (t:l.#!:'!lr.t/iJ!-;

(a) /RJfftl.{;ll/iflfll!ifjj[JJ !:--f,f:-M!i l=l i'ffiif.ift:.Hlifr&Jtili('JS 1�1�17 1f. I 2 Jl :ll 8 ![

�·fi®�-0��-l=l · �fi0�W0�Z��

!ln.l! :.<� &t.'i<rfi',: �rflf"tn!J#�F6 .t "

(b) :{Efff/111 �-11111'1/flfi «�•0�ooN�� �*�� ���a��oo�� ·l'ti�Ui'ill� 9•1 ,

(c) 1/f(Aiflill! �A�·WM�-��A•m�--� ·

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JX!#.(J..ltt!!t!di t! lt1tr'A(J'f-WJl1rii'i o MTOO�W�M � � - ili ·A � @ � ·

�aaMoo��-��-������ � A @ - W

n•m•• i ffi�b3'f-t ��-�����

���Aiin�m � � •*�••mmili�IT

liut · �;',' & 11!�0"/!:i&IIJ'i

i't!¥

(e) #J; 1/i/flfi

1 0 �� 20"·o

20u/o

J�J: illt't'!'iti(IJRffl-tlllli iliW'I�f<r*iEH'� ,j( !A tE�.'HA ylj"* 0

( J) 1ft filiUJ! 1'1 PJ! 11'1 fi ftfiiU: # Hm•��m���m�m& �moo•M��� -

(g) fffflfllllfl '!;'l!IH!WJn�l!lli4'£ &.Hfll�tl<�Hll�11'i:dlWJ r'E4li: :X t.-6f1:-�pg�'tA &-tirl>t o

(II) 9Htr tJi 1�­����-��W:.<� n oo••mrrbm � o fiM

'!'t•&um�ms�8 oo��M•�n � m K " �

M�rroo • � m � E � A��Mrr � � "

t;;; 1l- ft FP: f! fit .:& $ 1997 :¥ 12 fJ 31 El U!JJIP/I'ft-/iff.J

NOTE TO CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 1997 (£.\pressed ill Hollg Kollg dollars)

(a) Reconciliation of surplus from ordinary activities before taxation to net cash inflow from operating

activities

Surplus from ordinary activities before taxation

Surplus on sale of leasehold property

Interest and dividends received

Deficit/( surplus) on disposal of fixed assets

Surplus on disposal of marketable securities

Depreciation on fixed assets

Write-off of fixed assets

Increase in staff housing loans

Decrease/( increase) in accounts with investment manager

Increase in debtors and prepayment>

Increase in creditors and accruals

Increase in subscriptions received in advance

Net cnsh inllow from operating activities

NOTES TO THE ACCOUNTS (Expressed ill Hong Kong dollars)

1 Significant accounting policies

(a) Basis of consolidation

1997 IlJ<)6 $'000 )'()()()

H5.230 1 0.449

(77.259)

(3,5tl2) ( 2.3% )

72 (22)

(3.342) ( 1 . 1 5 3 >

5,846 4.4 73

875

(n.OOO)

1.707 (2.4 17)

(600) ( J .l)7 1 )

1,867 l ,X95

2.708 10 1

7,522 X.lJ5')

The consolidated accounts include the accounts of the Chamber and its subsidiary mnde up to 3 1 December 1997. All material intercompany transactions and balances are eliminated on consolidation.

(b) Investment in subsidiary

Investment in subsidiary is stated at cost less any provision for permanent diminution in value as determineu by the General Committee.

(c) Income recognition

Income is recognised when earned and i s accounted for on an accrual basis.

(d) Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Leasehold land is depreciated over the remaining periods of the respedive leases. Buildings are depreciated over a period of forty years from the date of acquisition. Computer system is depreciated on a straight line basis over the estimated economic life of the system of three years starting from the time the economic benefits begin to accrue.

Other fixed assets are depreciated at the following annual rates on a straight line basis: Furniture. fittings and office equipment IO'k to 20'7c Motor vehicle 20c1r

(e) Unlisted investment

Unlisted investment is stated at cost less any provision for permanent diminution in value <tS determined by the General Committee.

(f) Marketable securities managed by investment manager

Marketable securities are stated at the lower of cost and market value on a portfolio ba>is.

{g) Operating leases

Rentals receivable and payable under operating leases are credited and charged to the income and expenditure account over the applicable periods of the respective leases.

(h) Translation of foreign currencies

Foreign currency transactions during the year are translated into Hong Kong dollars at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies <tre translated into Hong Kong dollars at the market exchange rates ruling at the balance sheet date. Exchange gains and losses are dealt with in the income and expenditure account.

27

Hong Kong General Chamber of Commerce (Limitrrl l>y Gunrnnlt'!')

CONSOLIDATED ACCOUNTS

As at 31'' December 1997 (expressed i11 H01zg Koug dollars)

���� El llf·t�t ( fft) NOTES TO THE ACCOUNTS (coutinued)

2. -r:1!!1!ll!c��lt 2 Turnover •m��-M�M-�R · �ft · � & � � - Turnover consists of rees. members' subscriptions and income from publications anu promotion. &:�·[ (<.1� pfriij (J(J �\r: A ,

3 Exceptional items 3. t'ffA:ll'itl 1997 1996

$'000 $'000

1;'£:1; 11H11 t1�1 ���ri(fll(J /t.l.tt'?: Surplus on sale of leasehold property 77 .259

4. IM�Ytr'll 4 Fixed assel� F! !H.ffii'( jJb'tllit'i n o� · �� i'C r!C ·.t;H,;;j *--� ft'Wt

!fYJ � !f!JJ � 1var0 'i'i:;&fllf

(a) Si<# (a) Consolidated Leasehold Furniture. properties Leasehold fittings

held for investment and office Motor Computer own use property equipment vehicle system Total

S'IJOO s·ooo $'()()() $'()()() s·ooo S'OIJO

ff.{ti Cost: � 19!17 "1' I !l I H At I January 1997 64.H09 15.226 -l79 5.691 86.205

i�'i'i � Additions 9 1 .639 290 1 .750 93.679

tH1lf- Dispusals ( 1 .315) (330) ( 1 .6-l5)

�Ui Write·off ( 1 .597) ( 1 .597)

li� t !l!J7 '.j\ I './ Fj 31 li At 31 December 1997 63.494 9 1 .639 1 3.SX9 -l79 7.441 1 76.642

JBI!iPY Aggregate depreciatiou: � 1 !1'1/ lj'. I J.j I H At I January 1997 8,758 7.072 80 1.095 1 7.005

l¥ Pl JIT{ff Charge for the year 1 . 169 498 2.056 95 2.028 5.l!-l6 lf.P-J Ml t�'!itlo11 Written back on

disposals ( 1 .315) (2-ll!) ( 1 .563 ) If t'-1 il1!1HH 1"1 Written back on

write·off {722) (722)

� 1!1!17 "I' 12 H :11 R At 3 1 December 1997 !!,6 1 2 498 8. 158 175 3,123 20.566 --- --- ---

JN{bjifl(li Net book value: M: 1!1!17 lf 1 2 J'l 3 1 1 1 A t 3 1 December 1997 54,882 9 1 , 14 1 5.431 304 4.3 1 8 156.076 --- --- --- ---

h"l. I !l!lt) �1: 12 H :n fi At 3 1 December 1996 56.051 8. 1 54 399 4.596 69.200 --- --- --- --- ---

(b) }Bj(ff* (b) The Chamber

ff.{li Cost: rl:: t997 �r t fl t n At I January 1997 6-l.809 1 3.353 479 5.69 1 84.332

itfl Additions 91.639 257 1 .750 93.646 lllllt Disposals ( 1 .3 1 5 ) (330) ( 1 .645)

lit 1 !1!17 '�' 12 H 3 1 H At 31 December 1997 63,494 9 1 .639 1 3.280 479 7,-l-l l 1 76.333

�l!ffi Aggregate depreciatiou: fit I Y9 7 IJ.' I H I A At I J anuaty 1997 8.758 6,606 80 1 .()95 16.539 1r P-1 JJr1'i Charge for Jhe year 1.169 498 1,678 95 2.02!\ 5,468 "1' 1'-lll\(�tffpij Written back on

disposals ( 1 ,315) (248) ( 1 .563)

11,• 1 !1'17 w 1 2 1'1 31 1 1 At 3 1 December 1 997 8.612 498 8,036 175 3.123 20.444 --- --- --- --- --- ---

JIIJJ/Iiif1{([ Net book 1•alue: 11,· 1 !1!17 '-1' 1'./ .1'1 31 11 At 31 December 1997 54,882 9 1 . 1 4 1 5.244 304 -l.318 1 55.889 --- --- ---

� l'l!lfi '-1' 12 J.l 31 H At 3 1 December 1996 56,051 6,747 399 4.596 67.793 --- --- ---

(c) ff/0 f/1 if#/ :tl Jt 1'1 ff1Ul #1 t£ fi if! , If P.J. fUll (c) The leasehold properties held for owrt use and iuve.1tment property are situated iu Hong Kong and held u11der

mro'i;fA�it • loug leases.

28

4r hh 'ilt 111 . r�e w. w ;,r rr !iH Ill! i� i;J il� '1:.. :;J;

1: 'ii llil ff n'1 r�J lh� i� ,;J t!fl r -�' Ml f'r IJfl �� ri ill! i� ,rJ� · IT dtill:�i' llij i,Y. ·1. • L 'l:: i,�!li!J Jc�ll'N'illi f))• l ' .C: I.HM HHII!H 1l'f! :\t!fi� �l Hn · .'tt1lll rTJI!( f)) ti I'� �� ,;J L!. fi': I <1�111 If' 2 11 1 1 1 1 �f rll.tlli m •i• ·C:!£ fj·

tti If,\ fW: ,1t W 't'i M i!lH·XJ r;r,c 'i'i >.& ··ti lli� Jlri l17 i� ,;J 'fi M i!ii (J'1 1l!Hir 1'J;'fii!Mt�

J'M •Ji\>7 M'!.\ · M"i Mlt!i lt�J',I; 'tif1' tH �' rfli flli4K J'J'/IY iJ'@(!l:f}; o

b)({([ J-. rfjJ'): \'i

!'till!

ii!t 91·

ilifii. �- diJ'l:'i'.f

fi'ffi; #'>'�

�fiHH'il'lti't;J.:!HfJt�llJI\'t.:J; · 211111 {f' J 2 1 1 :II I I J 'Jil

�· - u� �uu � . · «••� ft•• · w�� :[l11i:fJJJ till# . -�·;((i/1\U.:'Xf�. I U¥,!)'d'l �H I 0

f.J.1/ii,VH!. i l '>K H!if1 fi:J:fll i'iii'llr · ;i:'WJ{r.;;J: · U lz -lift'!,i(f tWJ�ffi.';J f•J.U. fll ��itJ'£�1 ftJ · BJtllfl:'t'i�V'l' 1'1' 111' · H!Ufi ��� 1'

it*''*''

<i:'WH'f!k �fu ,i! �1].(!. I.{ Nli l['LH fl)

� 1t tt 11l'i 'fl. f�'t � Q{· 199 71f. 12 ff 31 11 ( w. iiPttr M rn

NOTES TO THE ACCOUNTS (continued)

5 Investment in subsidiary

Unlisted shares. at co't Amount due from subsidiary

Less: Provision

1997 $'000

[() 5.487

5.497 (4,6 ! 2 )

Xli5

1996 $'000

[() 4,3 1 6

-026

4,326 ---

The wholly <l\\ncd subsidiary is Chamber Services Limited (''CSL"), incorporated in Hong Kong, whose principal activities are the operation of a husine" centre and the provision of lmsiness related services. CSL ceased the operation of the business centre with effect from !5 February 199K.

6 Unlisted investment

7

s

Shares in Trade link Electronic Document Services Limited ("Tradelink"). at cost Provision against investment

1997 $'000

5.K75

(5.X75)

1996 $'000

5.875

( 5.8 7 5)

The General Committee considers it prudent to provide fully against the investment in Trade! ink.

Marketable securities managed by investment manager 1997 1996

$'000 $'000 At cost

Listed investments - Hong Kong 6,8 1 3 S,699

- Overseas !3 .554 25, 1 1:1 20.367 33.812

Unli;;ted investments 1 3.206 2,8 1 4

33.573 36.626 ---

klarket value Listed investments - Hong Kong 7.3 1 7 I 2.538

- Overseas 14.142 26,345

2 1 .459 3!i .!iH3

Unl isted investments 1 3.277 3.000

34.736 4 1 .883 ---

Unlisted investments comprise honds and other marketable instruments.

Staff housing loans

The staff housing loan' are sccureu. interest free until 3 1 December 2001 and at 5'k per annum thereafter. The amounts are repayable upon the staff members' resignation or retirement or on the sale of the property, whichever occurs earlier.

9 Accounts with investm�nt manage1·

These comprise cash balances in interest-hearing current accounts and tixed deposits together with accrued interest and dividend receivable on marketable securities. managed by the investment manager as follows:

Current accounts Fixed ueposits Accrued interest and dividend receivable

29

1997 1996 $'000 $'000

2,942 2,649 2.000

5 1 '! 5l)()

3.46 1 5.239 ---

Hong Kong General Chamber of Commerce (Limited l>y Guamnlee)

CONSOLIDATED ACCOUNTS As at 31'' December 1997 (expressed in Hong Korzg dollars)

ll!HI Ilt<tn. (f.ftl 10. &m (a) J;;f.f-1/X"J::!tff:hw�fJI.Jiif!!.M : -

Jt�(l'f<:�/Jtf/i.ft@lri*fll.i.iHIJ�;.(fll.$ 16.5% .'ttJT li�-tlf�;f1J1!'j.fll.4i!illi

•n��ft&Bill�A����-•m•M" i!Hll. .

2fs:if-1!r iiW:ftJ ilHII.l\'lf/,� E. NHHil'dtJ.f!}ffi.

1 1 . IHilft

•:ltt't.t&A IIDIK<i'ft-l!l�lf.f

JE Wlfff� WfilHl.i'i:�iX ftJ.til­�J.@.JHI.f'l

.trtil'IH't ��-trntln>t

13. HI AI(,& =HUii

�ll:A .'l:j � �JJiijll.m' �tt

:1 ili ill� �g&ii!i!fiiJ!IEWc J�'d!r & 0 �till«< �'tt

;t;r� - l¥���&tllltl. ��.tHlH*¥i<iJUx Qa� 1�1Nfl.ii&:ffrlllftl!l �!�'&Ill J!t fill '* ft t,jl Rli t�wll&t!UrJ

lliii&t:fift 'i'un m?.&n Efll!i� &.�n fl;'l'( {W, ti' · t.:lt f� & ii'W'<

NOTES TO THE ACCOUNTS (continued) 10 Taxation (a) Taxation in the consolidated income and expenditure account represents:

Provision for Hong Kong profits tax at 16.5%

on the estimated assessable profit for the year

1997 $'000

453

1996 $'000

1 2 S

The Chamber is liable to profits tax on net surpluses earned other than those arising from subscriptions and fee income.

(b) Taxation in the balance sheets represe11ts: 1997 1996

$'000 $'000 Provision for Hong Kong profits tax for the year 453 1 2X

Provisional profits tax paid � � 357 2� ---

1 1 Fees 1997 1996

$'000 $'000 Gros� fee income 46,279 5�.04X

Reimbursement to Hong Kong Government (4,290) (4.30 1 )

4 1 ,989 -\8,7-17 ---

12 Interest and dividends 1997 1996

$'000 $'000 Interest on rime deposits and staff loans 1 ,856 S-lo Interest and dividends - listed investments 1 , 164 1 .54 1 - unlisted investments 562 ')

3,582 2.390

13 Publications and promotion 1997 1996

Income from $'000 $'000 - publications 2,427 ",0-\4 - sundry services 8.1l0 6.5X5 - exhibition 2,9 1 3

---�-�"�?_Q 9.62')

Expenditure on - publications 1.634 2.7 1 -l

- trade and programme promotion 6,207 5.679

- advertising and public relations 123 243 - exhibition 2.350

__ }_Q"�-1-� X.o36

Net income 3,136 993 ---

14 Staff 1997 1996

$'000 $'000 Salaries, bonus and allowances 35.057 33.60 1 Contribution to staff retirement fund 3,579 3,7 12 Staff quarters rental and the related expenses 2,277 1 .9-17

Medical expenses 647 677

Passages and leave allowances 521 -\()') Training and recruiting 14 1 1 7 ---

42,095 -\(),�63 ---

15 Office 1997 1996

$'000 $'000 Rent and rates 4, 1 20 5. 1 70 Light and power 248 2 1 7 Telephone 592 .�62 Printing and stationery 1 ,334 1.73 1 Postage 829 74X Maintenance. repairs and cleaning 1 .973 2.05 1

30

m*• <!it) >'Hf! fir ifi j'/ ('f Ji!! I ftili lliJ � �rl'UJH

16. !lllf*ft)IJ

f!\�j'( i'i]Jilij'( ii;Ut&J)J � 'Il{ .itP:'U{ NI'IM1J!��'l'C w��

11. mm

�l 11:: re fftdHN t±l W � It\'if<l'i\\'it!J. I !Mi®i !tlJ;.E rt�Wl!R

1s. fr 'tUUil�

'i:i M !iHI'if"r11{ �'I.ft l.H'l!iffliif§\'tl'Jli:J

19. lij';;f!l.ftJlAt i!!tf,�ftl\:f«{ SB2,292,000 ( I �I'Hi lf. : Sl 2,:l!i'l,OOOI ��mmMLDEft8•&�mmAm ·

20. 'tt-*�lm 1£ 1997¥ 1 2 fl 3 1 J:l • .!.@.f:T ;!<!iUAil!PJ'iil';J!!!iH ({;f1TtW�UT :

2 1 . :m.!ti�lm {£ 1997 ¥ 1 2 Ji 31 R • .!ilmvHHJJ��'lH\'lillffH{J lin lf.l!t�Jrlfi'Tt�Ji�;;;;lilHOT :

fll�{j :

I ifOIAJJ!Ililii

I if {!i fti_ 5 IF(Aill!Hi\l

22. �liiH'I (£ 1997 ¥ 12 fl 3 1 8 · 8illi�ltlf'FMHHili��� 'i:iMma�m� ��-fi�l'iW N A�m�w� � s 2 ' 2 fi 0 ' l ) 0 0 A� .!!X fi ft it! ! I 9 'I l i ""' S2.2tiO,OOOI •

23. .LBI!f.l-'4i:;)f-� •n*h*�&�-� � � Mfi � l'i m a w w m -m��m;;;; ���•Qm���� - ���� wgiliN rt•••��� · •••��m•ilim lf.A(Jli'L�AAJ'l:liHI ! �#riHI\ 1 4 JH J <P-tuM •

24. 'tfiii'i.fi «t;JiiQMfflfr'�lJ�.Jl'f (£ I !I�IH 1f l Fl 23 R · t!! �HH� .IT 'Cl it � �; · >:< S l o . o o 1 1 . o o 11 tJ- it! Ill Jll it£ '!' lf- I(( 1\R i�l i'i1 fl'i i.:\ S2.0l 3.000 ft!Jfl!t:(-ln$f�iL.O # , :<:'flfi'< 1�1113 lf. 2 fl lti 1:1 ',7;1;\:: '

NOTES TO THE ACCOUNTS (continued)

Office (continued) Books and newspapers Local tra veiling Motor car expenses Sundry expenses

16 Services

Audit fees Treasurers' fees Legal and professional fees Computing fees Investment manageris fees Insurance

17 Depreciation

Depreciation on fixed assets Deficit/(surplus) on disposal of fixed assets Write-off of fixed assets

1 8 Subscriptions and donations

Trade organisations' subscriptions Educational and economic research sponsorship

19 Surplus after taxation

t>r. 1r ft � it Nl ;tt M 19971-f- 12 # 31 fl r PJ.rti'!ffli!f#J

!1 1 97 1 70 1 7 1

75 �I) 346 276 ---

9,768 1 0.863

1997 1996 $'000 $'000

234 I XO 600 330 320 3X3 873 J ,OOn 250 209 6 1 9 n3X

2,896 2.746

1997 1996 $'000 $'000 5.846 4.473

72 (21) 875

6,793 4,45 1

1997 1996 $'000 $'000

42 1 04 44 90

86 1 94 ---

The surplus after taxation includes a surplus of $82,292,000 ( 1996: $ 12.369.000) which has been dealt with in the accounts of the Chamber.

20 Capital commitment Capital commitments outstanding at 3 I December 1997 not provided for in the accounts were as follows:

Contracted for

2 1 Lease commitments

Consolidated and the Chamber 1997 1996

$'000 $'000 525

At 3 1 December 1997. there were commitments under operating leases in respect of properties to make payments in the next year as follows:

Leases expiring: Within one year After one year but within five years

22 Contingent liabilities

Consolidated and the Chamber 1997 1996

$'000 $'000 449 I ,052

4,347 3.28-+

4.796 4.336

At 3 I December 1997, there were contingent liabilities in respect of the guarantee given to a bank by the Chamber in respect of banking facilities extended to Trade link amounting to $2,260.000 ( 1996: $2,260,000).

23 Staff retirement scheme The Chamber operates a defined contribution staff retirement bene lit scheme for all qualifying staff of the Chamber and its subsidiary. The assets of the scheme are held separately by an investment manager. Contributions applicable to each year are charged to the income and expenditure account for the year (note 14).

24 Post balance sheet events On 23 January 1998. the Chamber entered into a sales and purchase agreement for the sale of a leasehold property, with net book value of $2.01 3,000 at the year end, to a third party at a consideration of $ 1 O,O(X),OOO. The sale was completed on 1 6 February 1998.

31

Hong Kong Gener�l Chamber of Commerce

UST OF COMMITTEE CHAJRMEN � u for .± l;f. � fi!.

AMERICAS CHINA COMi\UTTEE COMMITTEE Mr Tony Fung

Mr Robert Dorfman (Chairman)

(Chairman) Dr Lily Chiang

Mr H Y Hung (Vice Chairman)

(Vice Chairman)

Mr Andrew Yuen

(Vice Chairman)

EUROPE COMMITTEE ARAB & AFRICAN Mr Manohar Chugh

COMMITTEE (Chairman)

Mr Lawrence Fung Mr Hilton Cheong-Leen

(Chairman) (Vice Chairman)

Mr Michael Dalton Mr Barrie Cook

(Vice Chairman) ( Vice Chairman)

Mr Alistair MadeoJ

(Vice Chairman)

SHIPPING ASIA COMMITTEE COMMITTEE Mr Andrew Yuen Mr Terence Sit

(Chairman) (Chainmm)

Mr Joseph C Y Poon Mr Neil Russell

(Vice Chairman) (Vice Chairman)

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ENVIRONMENT COMMITTEE MEMBERSHIP COMMITTEE Mr Barric Cook M� Fanny P Lai

(Chairman) (Chairman)

Mr John Szeto Mr Stephcn Cl ark

(Vice Chairman) (Vice Chairman)

SMALL & MEDIUM ENTERPRISES COMMITTEE Ms Phyllis K Y Kwong

HUMAN RESOURCES (Chairman)

COMMITTEE Mr Joc Tam

JV!r Poon Yun ( Vice Chairman)

(Citaimum)

Mr Alan Lung ECONOMIC POLICY (Vice Chairman) COMMITTEE

Mr Martin Barrow. JP (Chairman)

LEGAL COMMITTEE INDUSTRIAL AFFAIRS Mr R T Gallie

COMMITTEE (Chairman)

Dr Lily Chiang

(Chairman) TAXATION COMMITTEE Mr Christopher Cheng Mr Rodcric Sage

( Via Chairman) (Chairman)

Jtt:ljl�tl� rp ,J,ll'l:it:�� .a�

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32

Hong Kong General Chamber nf Commerce

COMMITTEES � w. *

HONG KONG COALITION OF SERVICE INDUSTRIES

EXECUTIVE COM:VIITIEE

Mr T Brian Stcvenson ( Chairman )

Mr Stanley Ko ( Vice Chairman)

Ms Anita Bagaman Mr Mike Booth Mr Charles Ni<.:holas Brooke Mr Gareth Bullock Dr W K Chan Mr John Chan Mr Ganncn K Y Chan Mr !an Christie Mr Peter J Dunn Mr Henry Goldstein Mr Anthony Griffiths Mr Kent Hayden-Sadkr Mr Kwok Kwok Chuen Mr Denis Wing Kwan Lee M r C K Leung Mr James Lu Dr Sham us C Y Mok Mr Guy Priestley Mr Richard Pyvis Prof Richard Wong Mr Roderick B Woo Dr Eden Y Woon Mr Yeung Kwok Keung The Hon Howard Young. JP

tMr�n1r

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FINANCIAL SERVICES CG:\!1\'I!TTEE

Mr Gareth Bullock (Chairman )

!NFOR\IATI0:-1 SERVICES

CG:\IMITIEE

Mr Henry Goldstein (Chaimwn)

PROFESSIONAL SERVICES

CO:VI�IITIEE

Mr Anthony Griffiths !Chairman)

REAL ESTATE SERVICES

COM�IITTEE

Mr Charles Nicholas Brookc (Chairman)

STATISTICS COMMITTEE

Mr K wok K wok Clmen (Chairman)

TRANSPORT/INFRASTRUCTURE

COMMITTEE

Mr Y�ung Kwok Keung (C/wimum)

HONG KONG INTERNATIONAL

STEERING CQ:\IMITTEE

The Hon Paul M F Cheng (Chairmclll) Mr Martin Barrow ( Vice C/wirm</11)

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33

Dr Raymond Kuo Fung Ch'ien Mr Chan Wing Kce, J P M r Stcphen Clark Mr Robert Dorfman Mr Kcnm::th Fang, JP Mr Douglas Fcrgusson Ms An ne Forrcst Mr Anthony GriiTiths Mr Kerry McGlynn Mr William Ovcrholt Mr Godfrey Scotch brook Mr Martin Spurrier The Hon James P C Tien. JP Mr Dennis Ting. JP

PACIFIC BASIN ECONOMIC COUNCIL HONG KONG COMMITTEE

Dr Hclmut Sohmen (Ciwirlllall) Mr J P Lee. JP ( Vice Chairman) Mr John Strickland (Vice Chairman) Mr Brian Anderson Mr Martin Barrow Mr David Dodwell Mr TlHll11<1S J Duffy Mr D W M Fergusson Mr Horst F Gcickc Mr Mark os F Jehsen Mr Edward Kwong The Hon Alien Lee. JP Mr Patrick Paul (Treasur�r)

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'} i',?U {',� Jt: '""!:. t MIJ _tUI1J :

Mr Peter Sutch Mr Gordon Y S Wu

HONG KONG· TAIPEI BUSINESS COOPERATION COMMITTEE

EXECUTIVE COM�HTIEE

The Hon Paul M F Cheng (Chairman) Mr J P Lee. JP (Vice C/wirman) Mr Simon K Y Lee (Vice Clwirman) Mr Alfred Au Dr Lily Chiang Ms V C Davies !VIr Robert C K Kwok l'v!r Lam Kwok Hing Mr Victor Lo IV!r Patrick Paul !V!r Si Siu Man Mr Robert A Theleen Mr Philip L Tose Mr Andy H Tseng Mr C C Tung Mr Hugh S H Wu Mr Kong Yam

HONG KONG FRANCHISE ASSOCIATION COMMITTEE

!VIr Y K Pang !Chairman)

1' �� 'f'1 iVL

, ,y,lj i'./,1; , l!'u\ Jt ifUJ'L:�: Kif illHiifW 1: l,',j_'�fJ ( !;: [: �l;:VJp"Jj 'le'! .

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The Hong Kong General Chamber of Commerce

1'i=i-!U1\!�1iff 22/F United Centre. 95 Queensway, Hong Kong ?i' Ri: �� }•Tt ill �1:, �H rr.:-· rt1·L' 22 ¥-M Tel ('.t;:;i�) : 2529 9229 Fax (Nfff.) : 2527 9X43