1997 Policy Programme - Economic Services Bureau

MESSAGE

This Policy Programme sets out the Government's objectives, aims and key tasks in the field of economic services. The goal is to ensure that Hong Kong has the economic infrastructure to enable it to compete effectively with the rest of the world now and into the 21st Century.

A number of measures are already in hand to ensure Hong Kong's competitiveness and long-term prosperity. In particular, the new airport at Chek Lap Kok will soon come into operation. We will review and determine when new port facilities should come on stream. We will also ensure that Hong Kong is equipped with state-of-the-art telecommunications facilities, a first-class information infrastructure and efficient postal services.

The Basic Law has provided the essential framework for Hong Kong's continuing development. The policies and programmes set out in this document seek to implement the relevant provisions of the Basic Law in the area of economic services and contribute to the continued prosperity of Hong Kong.

This document provides you with an overview of the policy objectives towards which I and my colleagues in the Economic Services Bureau and the seven departments under its remit are working. I welcome your comments and will take them into account in formulating new policies.

(Stephen Ip)

Secretary for Economic Services

INTRODUCTION

The Hong Kong Special Administrative Region (HKSAR) Government is committed to ensuring that it is open and fully accountable to the people of Hong Kong. Policies, aims and programmes must be clear to all so that the Government can be accountable for their delivery. With greater clarity of purpose and accessibility, the public can better assess our performance and help us improve our quality of service.

The Policy Programmes, which underpin the Policy Address delivered by the Chief Executive in October 1997, explain the objectives and ongoing work of each Policy Bureau and its supporting departments, as well as Department of Justice, Office of the Judiciary Administrator, Independent Commission Against Corruption and the Administration Wing of the Chief Secretary for Administration's Office, and their proposed new commitments for the coming year. They are set out in three sections:

Objectives state the overall objectives of the Government according to each programme area, in particular, responsibilities in relation to implementing the Basic Law are spelt out.
Major Programme Areas list the aims and the important features of each programme area. An overview of the current situation and key performance indicators are given. This section also sets out the Government's new commitments for the coming year.
Into the 21st Century describes the vision of the Government for a better Hong Kong as we enter the 21st Century and the plans we are making to meet our long-term needs.

Objectives

The Bureau's primary objective is to ensure that Hong Kong has the economic infrastructure to enable it to compete effectively with the rest of the world. Specifically, we seek:

to maintain Hong Kong as a centre of international and regional aviation and to ensure that Hong Kong's airport capacity and air services are sufficient to meet the growth in demand;
to provide an efficient and safe port to meet growing shipping demand;
to ensure state-of-the-art telecommunications facilities and efficient postal services;
to ensure adequate and efficient supplies of energy at reasonable prices; and
to advance Hong Kong's position as a major international centre for tourism.

Implementing the Basic Law

The articles of the Basic Law of most direct relevance to the Bureau are listed at Annex. The Bureau's objectives are designed to implement these articles. A number of initiatives merit particular note.

Article 118 of the Basic Law provides that the Government of the HKSAR shall provide an economic and legal environment for encouraging investments, technological progress and the development of new industries. The Bureau will encourage the development of a Hong Kong Information Infrastructure, which includes facilities, applications and skills necessary for Hong Kong to remain competitive in the Information Age. We will reorganise the work of several bureaux in this area to help implement these policies.

Article 119 provides that the Government of the HKSAR shall formulate appropriate policies to promote and co-ordinate the development of various trades including tourism. We will enhance our efforts to advance Hong謭ong's position as a major international centre for tourists.

Article 125 provides that the Government of the HKSAR shall continue to maintain a shipping register and issue related certificates under its legislation, using the name "Hong Kong, China". We will explore further means to promote our shipping registry and encourage shipowners to register their ships in Hong Kong.

Article 127 provides that private shipping and related businesses and private container terminals in the HKSAR may continue to operate freely. The Government will provide scope for that business to develop through expansion of port capacity and identification of additional sites for cargo back-up services.

Article 128 of the Basic Law provides that the Government of the HKSAR shall provide conditions and take measures for the maintenance of the status of Hong Kong as a centre of international and regional aviation. The development of a modern new airport with increased capacity at Chek Lap Kok, the continuation of the previous system of civil aviation management, the keeping of Hong謭ong's own aircraft register and the continued expansion of air services links with our aviation partners will be conducive to meeting this requirement.

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Major Programme Areas

The Economic Services Bureau is responsible for seven major programme areas:

Air Communications;

Sea Communications;

Posts and Telecommunications;

Energy Supplies;

Public Safety;

Agriculture and Fisheries; and

Tourism.

A. Air Communications

Aims

The aims of the Bureau are:

to maintain Hong Kong's position as a centre of international and regional aviation; and
to ensure that Hong Kong's airport capacity and air services are sufficient to meet the growth in demand.

Overview

New airport

Hong Kong's new airport at Chek Lap Kok is now over 80% complete and on course to meet the target opening date of April 1998. All commercial franchises for airport support services, including those for air cargo, aircraft maintenance, fuel supply and catering have been awarded. Operating and safety procedures are being developed to a high standard and the recruitment and training of air traffic control staff are continuing. Works on the second runway are underway and are expected to be completed by late 1998.

Civil Aviation Management

Localisation of all relevant United Kingdom civil aviation legislation which previously applied to Hong Kong has been completed. This provides the legal basis for the continuation of Hong Kong's system of civil aviation management, the keeping of its own aircraft register and for ensuring the continued application of relevant international civil aviation conventions and agreements to the HKSAR. Agreement has also been reached between the mainland authorities, Macau and the HKSAR on airspace and air traffic control for the new airport at Chek Lap Kok and the adjacent areas to ensure the safety and efficiency of air traffic in the region.

The HKSAR Government may continue to participate in the activities of the International Civil Aviation Organisation as members of the delegation of the Government of the People's Republic of China. It may also participate in conferences and activities of the Organisation not limited to states by using the name "Hong Kong, China".

Air Services Agreements

We have been putting in place a set of self-standing air services agreements with other countries in order to provide a stable legal framework for the development of air services. For this purpose we have completed the separation of the Hong Kong components from relevant air services agreements which were signed between the United Kingdom and other countries before 1984. We have also negotiated air services agreements with new aviation partners. So far we have signed 22 air services agreements. In line with the relevant provisions of the Basic Law, we will seek specific authorisations from the Central People's Government to negotiate and conclude air services agreements with other countries for the continued development of the HKSAR's air links with the rest of the world. We will also work out arrangements with the Central People's Government for air services between the HKSAR and other parts of the People's Republic of China in accordance with the Basic Law.

Key Indicators

In 1996-97,

Air passenger throughput was over 30illion;
Air cargo throughput was over 1.6illion tonnes; and
Air services agreements were signed with six countries.

New Commitments

We will continue to make the best use of Kai Tak before the opening of the new airport at Chek Lap Kok by increasing runway capacity from 30 to 31 movements per hour by end 1997.
We will seek specific authorisations from the Central People's Government to negotiate and conclude air services agreements with other aviation partners. We will also work out arrangements with the Central People's Government for air services with other parts of the People's Republic of China in accordance with the Basic Law.
The Civil Aviation Department will establish an Automatic Dependent Surveillance System using satellites and data-link to improve monitoring of aircraft movements outside radar coverage. This will help enhance flight safety and cope with increase in air traffic.

B. Sea Communications

Aims

The aims of the Bureau are:

to ensure that our port facilities meet the growth in demand for shipping; and
to promote shipping safety and ensure continued compliance with relevant international standards of ships visiting our port.

Overview

We have continued with our efforts to ensure timely construction of Container Terminal 9. We aim to complete the 1997 Port Cargo Forecast by the end of this year. This will be used to determine when new port facilities should come on stream. We plan to dredge the Rambler Channel as part of the Container Terminal 9 project to enable new types of large container vessels to enter our port. We will provide additional back-up facilities to support the mid-stream cargo operations, by examining the feasibility of developing a site in Tseung Kwan O Area 131. We have implemented Phase I of the management plan to improve the operational efficiency and financial performance of public cargo working areas. To handle Pearl River Delta port traffic, the first phase of the river trade terminal will begin operation in 1998.

On marine safety, a strategy has been developed to optimise the use of Hong Kong waters and to minimise risks to shipping. The operational efficiency of the Marine Department harbour patrols service has been greatly improved by integrating the patrol launches under a unified command. We will further enhance marine safety by implementing the High Speed Craft Code and the International Safety Management Code. We are also examining the marine and environmental impact of using the Tonggu Channel as an alternative route for vessels using the congested Ma Wan Channel.

Key Indicators

In 1996-97,

Container throughput was 13.5 million TEUs (twenty-foot equivalent units), an increase of 7.3% over the previous year.
221?00 ocean-going vessels (OGVs) and river trade vessels (RTVs) arrived at the port, an increase of 1.8% over the previous year.
There were 89 shipping accidents affecting OGVs, a drop of 45% over the previous year.
There were 266 shipping accidents affecting RTVs, a drop of 9.5% over the previous year.

New Commitments

We aim to complete the land grant for Container Terminal 9 by the end of 1997 and hand over the site to the developer for construction of the terminal.

In 1998,

We will, after the completion of the 1997 Port Cargo Forecast, determine when Container Terminals 10 and 11 should be constructed and formulate a long- term port development strategy to maintain Hong Kong's competitiveness.
We will examine the need to replace and upgrade the existing VTS system in order to maintain the capacity of effective vessel traffic control and marine safety.
We will plan the implementation of a strategy for optimising the use of Hong Kong waters and minimising risks to vessel traffic.
We will plan the establishment of a new local marine traffic control station on Green Island to enhance marine safety.

C. Posts and Telecommunications

Aims

The aims of the Bureau are to ensure that:

Hong Kong has available high quality telecommunications services at competitive prices;
there is the necessary co-ordination to achieve a fully developed Hong Kong Information Infrastructure; and
there are reliable and efficient postal services.

Overview

Telecommunications

Hong Kong's telecommunications services and facilities are operated by the private sector. There are no foreign ownership restrictions and we are committed to a level playing field in telecommunications. Hong謭ong is in the forefront of the world in the development of the physical infrastructure to meet the demands of the Information Age. During the year we have embarked on an extensive review of our telecommunications policies, one objective of which is to consider how this competitive advantage in the development of the information infrastructure can be maintained. An Information Infrastructure Advisory Committee was established to advise the Telecommunications Authority on technical matters related to the Hong Kong Information Infrastructure. We are planning to group under one head responsibilities now divided between several bureaux, so as to establish an overall plan for Hong Kong's Information Infrastructure. It will address the physical infrastructure, the applications and the skills training needed to use the infrastructure and applications effectively.

Hong Kong's fixed telecommunications network is fully digitalised, though some analogue services are still available in the cellular network to facilitate roaming. We have awarded six licences for Personal Communications Services. These licensees commenced services during the year. We have made a commitment in the World Trade Organisation Group on Basic Telecommunications, which will come into effect on 1獱anuary 1998, regarding the liberalisation of local services and certain international services. Our commitments on value-added services are already in effect.

We have entered into a dialogue with Hong Kong Telecom International Limited on Hong Kong's international telecommunications sector. We hope to conclude our dialogue later in 1997.

Posts

Hong Kong benefits from reliable, efficient and universal postal services at reasonable prices to meet the needs of Hong Kong ?its businesses, consumers and its international obligations. During the year, the Post Office has continued to develop new products to meet customers' needs. A notable product is the hybrid mail service to assist its customers in printing and batching letters to their customers. The past year has seen a very high level of philatelic demand for stamp products, related to the world-wide interest in the handover. The Post Office has plans to improve the services to philatelic customers to promote on this interest.

Key Indicators

At June 1997,

On telecommunications Hong Kong had

3.51 million fixed lines
108 fixed domestic lines per 100 households
1.56 million cellular subscribers
200?00 km optic fibre cable

In 1996-97,

Number of letters handled by the Post Office was

	local	936.5 million
	airmail	208.5 million
	surface and overseas	37.5 million

Number of parcels handled by the Post Office was

	local	79?00
	airmail	1.12 million
	surface and overseas	395?00

The Post Office handled 4.24 million Speed Post items.

New Commitments

Telecommunications

In early 1998, we will group under one head responsibilities now divided between several bureaux. This Bureau Secretary will lead and co-ordinate the work of all those throughout the Government organisation involved in information technology, the related areas of broadcasting and telecommunications.
In 1998, we will develop and implement a regulatory framework for telecommunications services to ensure that Hong Kong will continue to have a world class telecommunications infrastructure capable of meeting the needs of the community.
By 1 January 1998 we will have implemented all Hong Kong's commitments in the agreement on the liberalisation in trade in telecommunications services under the auspices of the World Trade Organisation. We aim to promote competition in Hong Kong market to the benefit of consumers as well as to provide opportunities for local operators to compete in overseas markets.
We will continue to monitor and review development in the international accounting rate system for international telephone services and modify the regulatory framework where necessary to cope with the changes to safeguard the interests of operators and consumers in the changing environment.
We will conduct a feasibility study in late 1997 on "number portability" with a view to introducing a new service which will enable mobile telephone customers to change service providers without the need to change telephone numbers.

Posts

We will establish a new Air Mail Centre in the new airport at Chek Lap Kok in 1998.
We will continue to improve the quality of service of the Post Office and introduce new products to satisfy customers' needs and changing market demand. These include in 1998:

additional evening deliveries for parcels;
additional clearance of posting boxes in the New Territories;
selective opening of post offices on Sundays and public holidays; and
improvements to the Local Standing Order Service for philatelic products.

We will improve the productivity of the Post Office through increased mechanisation of postal processing, including installation of two additional machines for letter piling and stamp cancelling and enhancement of the Mechanised Letter Sorting System by the end of 1998.

D. Energy Supplies

Aims

The Bureau's aims are:

to ensure that the energy needs of the community are met efficiently, safely and at reasonable prices; and
to promote the efficient use and conservation of energy.

Overview

We will continue to monitor the performance of the power companies to ensure that they operate efficiently and that consumers benefit from savings arising from improvements in efficiency and reduction of excess planned capacity. We are also promoting energy efficiency and energy saving measures in consultation with the power companies.

To ensure greater transparency in the setting of towngas tariffs, we have entered into a formal Information and Consultation Agreement with the Hong Kong and China Gas Company Limited.

We have carried out a feasibility study on introducing a common carrier system for gas supply in Hong Kong and have consulted the industry and the public on the recommendations. We will examine the comments received and consider the way forward for the gas market.

We will continue to consult the Energy Advisory Committee on energy-related matters.

Key Indicators

In 1996-97,

31 633 millions kWh of electricity were consumed in Hong Kong, an increase of 6% over the previous year.
30 965 millions MJ of fuel gas were consumed in Hong謭ong, a decrease of 0.7% over the previous year.

New Commitments

We will negotiate with the power companies to enter into formal agreements on implementation of full scale demand side management programmes in 1998.
Starting from October 1997, we will conduct an interim review of the Scheme of Control Agreements with the power companies to ensure that consumers' interests are safeguarded.
In 1998, we will conduct a study of interconnection and competition in the electricity supply sector in Hong Kong with a view to promoting efficient use of generating capacity and encouraging competition in the power sector which are in the overall interests of consumers.

E. Public Safety

Aim

The aim of the Bureau is to enhance public safety through:

the introduction and enforcement of safety standards in respect of electrical and gas equipment and installations; and
the provision of the highest possible standards of weather forecasting.

Overview

In late 1996, we brought into effect legislative controls to safeguard underground gas pipes from damage during construction works. We are preparing to bring into effect in mid-1998 legislation to enhance control on the safety of household electrical products. Regarding gas safety, we issued two codes of practice, one on Liquefied Petroleum Gas and the other on avoiding danger from gas pipes, to ensure observance of safety standards and statutory requirements by trade and users.

We are setting up meteorological facilities for the new airport and developing the meteorological services to be provided there.

Key Indicators

In 1996-97,

9?63 site inspections were conducted on gas and electrical installations and electrical products.
694 electrical/gas incidents were investigated.
Public weather forecasts were 87% accurate.

New Commitments

In 1998,

We will introduce new legislation to deter third parties from damaging underground electricity cables and overhead electricity wires.
We will prepare new legislation to control electricity supply standards.
The Hong Kong Observatory will install a high resolution numerical weather prediction system.

F. Agriculture and Fisheries

Aims

The aims of the Bureau are:

to facilitate the development of agriculture and fisheries;
to formulate a fisheries resources conservation and management strategy;
to control the international trade in endangered species of animals and plants in Hong Kong; and
to promote animal welfare.

Overview

We are examining ways of developing our support for agriculture and fisheries along more commercial lines to maximise their contribution to the economy. We have commissioned a study on the arrangements for supporting the development of agriculture in Hong Kong. Findings are expected by the end of 1997.

We have started work on a five-year project to conserve fisheries resources and marine ecosystem through the deployment of artificial reefs. We are drawing up a reef protection and management strategy.

We completed a study on fisheries resources and fishing operations in local waters in mid-1997 which provides us with data to formulate a strategy to conserve and manage fisheries resources.

We have implemented the microchip implantation system for the identification of dogs and formed the Animal Welfare Advisory Group.

Key Indicators

In 1996-97,

Agriculture and fisheries production was valued at $917 million and $2,572 million respectively.
375 endangered species-related prosecutions were instituted.

New Commitments

We will set up a Veterinary Surgeons Board to register veterinary surgeons by the end of 1997.
In 1998 we will review the existing legislation and intelligence collection on illegal trade in endangered species of animals and plants in Hong Kong with a view to strengthening our control over such trade.
We will also set up a reward scheme for collecting intelligence on illegal trade in endangered species.

G. Tourism

Aim

The aim of the Bureau is to ensure that the development of our tourism industry is supported by adequate infrastructure and facilities.

Overview

Hong Kong is the most popular tourist destination in Asia and ranked eighth worldwide in terms of total tourism receipt. Tourism is now the biggest foreign exchange earner in the services industry in Hong Kong.

Because of the increasing importance of tourism to our economy we, together with the Hong Kong Tourist Association (HKTA), will continue to ensure that Hong謭ong has the necessary infrastructure and facilities to cater for the long-term needs of our tourism industry. Using the funds in the $50illion Tourism Development Fund set up in 1996, the HKTA is examining the feasibility of developing a number of proposed new tourist attractions and improving certain existing ones, such as a Hong Kong Exposition, a new film city and improvements to selected historic sites.

Key Indicators

In 1996-97,

Visitor arrivals totalled 11.9 million, a growth of 12.7% over the previous year.
Total tourism receipts amounted to $105.8illion, an increase of about 11% over the previous year.

New Commitments

In 1998,

We will set up a $100 million International Events Fund to provide the necessary seed money to enable major events to be held in Hong Kong. These events will serve to attract additional visitors to Hong Kong especially during off-peak periods. They will help promote Hong謭ong as a regional events capital and to maintain Hong Kong's competitive edge in tourism in the region.
The HKTA will set up a Tourist Information Counter, two Visitor Service Centres and a Research Office at the new airport at Chek Lap Kok to improve information dissemination to visitors to Hong Kong and to promote usage of facilities, attractions, services and events.

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Into the 21st Century

We want to advance Hong Kong's position as a major international centre for business and tourism, and to ensure that Hong Kong is well equipped to compete effectively with the rest of the world into the 21st Century.

We will maintain a high standard of civil aviation management in Hong Kong. We will continue our close liaison with the neighbouring aviation authorities in the Pearl River Delta and examine the latest technology available to ensure air traffic safety.

To maintain the quality of our airport services to meet the growing demand, the New Airport Master Plan envisages phased addition and expansion of facilities to provide additional capacity. Together with the Airport Authority we will carefully monitor airport development to ensure timely planning and provision of additional facilities to meet growth in demand.

Hong Kong must be able to continue to serve as the main port for China and a hub port for the region now and into the next century. Our task is to ensure that our port facilities will expand to meet shipping demand. We will formulate a long term port development strategy and determine when new port facilities should be provided.

To enhance Hong Kong's competitive advantage in the Information Age, we will reorganise the work of several bureaux so as to develop a plan for the Hong Kong Information Infrastructure and set policy targets. We will continue to ensure that Hong Kong offers excellent and reliable postal services to meet the needs of businesses and consumers at a reasonable price.

We must also prepare ourselves for the challenge of keeping Hong Kong's position as the most popular tourist destination in Asia. It is important that we sharpen our competitive edge in tourism into the next century. We need to develop new tourist attractions and promote Hong Kong as a major centre of events. We will work closely with the Hong Kong Tourist Association to achieve this.

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Annex: Relevant Articles of the Basic Law

Chapter V: Economy

Section 1: Public Finance, Monetary Affairs, Trade, Industry and Commerce

Article 109

The Government of the Hong Kong Special Administrative Region shall provide an appropriate economic and legal environment for the maintenance of the status of Hong Kong as an international financial centre.

Article 114

The Hong Kong Special Administrative Region shall maintain the status of a free port and shall not impose any tariff unless otherwise prescribed by law.

Article 115

The Hong Kong Special Administrative Region shall pursue the policy of free trade and safeguard the free movement of goods, intangible assets and capital.

Article 118

The Government of the Hong Kong Special Administrative Region shall provide an economic and legal environment for encouraging investments, technological progress and the development of new industries.

Article 119

The Government of the Hong Kong Special Administrative Region shall formulate appropriate policies to promote and co-ordinate the development of various trades such as manufacturing, commerce, tourism, real estate, transport, public utilities, services, agriculture and fisheries, and pay regard to the protection of the environment.

Section 3: Shipping

Article 124

The Hong Kong Special Administrative Region shall maintain Hong謭ong's previous systems of shipping management and shipping regulation, including the system for regulating conditions of seamen.

The Government of the Hong Kong Special Administrative Region shall, on its own, define its specific functions and responsibilities in respect of shipping.

Article 125

The Hong Kong Special Administrative Region shall be authorized by the Central People's Government to continue to maintain a shipping register and issue related certificates under its legislation, using the name "Hong Kong, China".

Article 126

With the exception of foreign warships, access for which requires the special permission of the Central People's Government, ships shall enjoy access to the ports of the Hong Kong Special Administrative Region in accordance with the laws of the Region.

Article 127

Private shipping businesses and shipping-related businesses and private container terminals in the Hong Kong Special Administrative Region may continue to operate freely.

Section 4: Civil Aviation

Article 128

The Government of the Hong Kong Special Administrative Region shall provide conditions and take measures for the maintenance of the status of Hong Kong as a centre of international and regional aviation.

Article 129

The Hong Kong Special Administrative Region shall continue the previous system of civil aviation management in Hong Kong and keep its own aircraft register in accordance with provisions laid down by the Central People's Government concerning nationality marks and registration marks of aircraft.

Access of foreign state aircraft to the Hong Kong Special Administrative Region shall require the special permission of the Central People's Government.

Article 130

The Hong Kong Special Administrative Region shall be responsible on its own for matters of routine business and technical management of civil aviation, including the management of airports, the provision of air traffic services within the flight information region of the Hong Kong Special Administrative Region, and the discharge of other responsibilities allocated to it under the regional air navigation procedures of the International Civil Aviation Organization.

Article 131

The Central People's Government shall, in consultation with the Government of the Hong Kong Special Administrative Region, make arrangements providing air services between the Region and other parts of the People's Republic of China for airlines incorporated in the Hong Kong Special Administrative Region and having their principal place of business in Hong Kong and other airlines of the People's Republic of China.

Article 132

All air service agreements providing air services between other parts of the People's Republic of China and other states and regions with stops at the Hong Kong Special Administrative Region and air services between the Hong Kong Special Administrative Region and other states and regions with stops at other parts of the People's Republic of China shall be concluded by the Central People's Government.

In concluding the air service agreements referred to in the first paragraph of this Article, the Central People's Government shall take account of the special conditions and economic interests of the Hong Kong Special Administrative Region and consult the government of the Region.

Representatives of the Government of the Hong Kong Special Administrative Region may, as members of the delegations of the Government of the People's Republic of China, participate in air service consultations conducted by the Central People's Government with foreign governments concerning arrangements for such services referred to in the first paragraph of this Article.

Article 133

Acting under specific authorizations from the Central People's Government, the Government of the Hong Kong Special Administrative Region may:

renew or amend air service agreements and arrangements previously in force;
negotiate and conclude new air service agreements providing routes for airlines incorporated in the Hong Kong Special Administrative Region and having their principal place of business in Hong Kong and providing rights for over-flights and technical stops; and
negotiate and conclude provisional arrangements with foreign states or regions with which no air service agreements have been concluded.

All scheduled air services to, from or through Hong Kong, which do not operate to, from or through the mainland of China shall be regulated by the air service agreements or provisional arrangements referred to in this Article.

Article 134

The Central People's Government shall give the Government of the Hong Kong Special Administrative Region the authority to:

negotiate and conclude with other authorities all arrangements concerning the implementation of the air service agreements and provisional arrangements referred to in Article 133 of this Law;
issue licences to airlines incorporated in the Hong Kong Special Administrative Region and having their principal place of business in Hong Kong;

designate such airlines under the air service agreements and provisional arrangements referred to in Article 133 of this Law; and
issue permits to foreign airlines for services other than those to, from or through the mainland of China.

Article 135

Airlines incorporated and having their principal place of business in Hong Kong and businesses related to civil aviation functioning there prior to the establishment of the Hong Kong Special Administrative Region may continue to operate.

Note

In addition, all Bureaux/Departments, as well as Department of Justice, Office of the Judiciary Administrator, Independent Commission Against Corruption and the Administration Wing of the Chief Secretary for Administration's Office, have joint responsibility for the implementation of the following articles:

Articles 11 (first paragraph), 16, 56 (second paragraph), 62(1) and (2), 64, 142, 148, 149, 150, 151, 152 and 153.

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1997 Policy Programme