FCR(95 -96)
For discussion FCR(96-97)64
on 25 October 1996

ITEM FOR FINANCE COMMITTEE

HEAD 53 - GOVERNMENT SECRETARIAT : HOME AFFAIRS BRANCH
Subhead 700 General other non-recurrent

Members are invited to approve a non-recurrent commitment of $233 million to meet the costs of holding the Handover Ceremony on 30 June 1997 and other related activities.

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PROBLEM
PROPOSAL
JUSTIFICATION

(I) Press and Broadcasting Centre and other media facilities
(II) Handover Ceremony - venue preparation
(III) Receiving and accommodating foreign dignitaries and other official guests
(IV) Cultural, entertainment and community activity programmes
(V) Miscellaneous expenses
(VI) Provision for recoverable hotel room deposits for other overseas guests
FINANCIAL IMPLICATIONS

Revenue
BACKGROUND INFORMATION
Agreed Minute of the Sino-British Joint Liaison Group on the Handover Ceremony for Hong Kong
Main Facilities for the Press and Broadcasting Centre

(I) Broadcasting Centre
(II) Press Centre

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PROBLEM

Discrimination Ordinance (DDO) in July and August 1995 respectively. We need to meet the costs of holding the Handover Ceremony on
30 June 1997 and other related activities to mark the handover.

PROPOSAL

2. The Secretary for Home Affairs (SHA) proposes the creation of a newaccount commitment of $233 million under Head 53 Government Secretariat : Home Affairs Branch Subhead 700 General other non-recurrent to meet the costs of holding the Handover Ceremony and related activities.

JUSTIFICATION

3. On 26 September 1996, the British Foreign Secretary and the Chinese Vice Premier & Foreign Minister met in New York and reached agreement to hold a handover ceremony (the Ceremony) for Hong Kong around midnight on 30 June 1997. On the following day, the two Senior Representatives of the Joint Liaison Group (JLG) signed an Agreed Minute setting out the arrangements for the Ceremony. The agreement provides for a solemn and dignified ceremony between the British and Chinese Governments marking both the handover and the establishment of the new Hong Kong Special Administrative Region. The Ceremony will be held in the Grand Foyer of the Extension to the Hong Kong Convention and Exhibition Centre (HKCEC), now under construction. Guests from Britain, China, Hong Kong and overseas including high level representatives from overseas countries and international organisations will attend the Ceremony. The Ceremony will include the lowering of the Union and Hong Kong Flags and the raising of the National Flag of the People’s Republic of China and the Regional Flag of the Hong Kong Special Administrative Region. The Agreed Minute makes it clear that normal internationally accepted media handling arrangements will apply and that the Hong Kong Police will be responsible for security. A copy of the Agreed Minute is at Enclosure 1.

4. The Ceremony will be a defining moment in the history of Hong Kong and the focus of intense international attention. It provides an excellent opportunity to showcase Hong Kong’s strengths and successes and to present the concept of "one country, two systems" to the world. We therefore believe that we should make the best possible arrangements to ensure that we well manage and produce the Ceremony itselfwell managed and produced, to facilitate media coverage locally and world-wide and to welcome guests coming to Hong Kong to the Ceremony. We also believe that we should provide a programme of community events to complement the Ceremony and to encourage widespread community involvement.

5. While the two sides will continue discussions in the JLG on the detailed arrangements for the Ceremony, funding provision is necessary to enable preparation for practical arrangements to start. We set out the main cost components in the following paragraphs.

(I) Press and Broadcasting Centre and other media facilities

6. Hong Kong will be the focus of intense media attention in the days leading up to, and immediately following, the handover at midnight on 30 June 1997. An Information Services Department (ISD) survey conducted in April 1996 indicated that over 100 broadcasters and 2 600 reporters wished to cover the events around the handover. We expect that the number of reporters and other media-related personnel will will grow in the months to come and could reach 6 000. We need to provide proper facilities for these media representatives. We also need to ensure global television coverage. We therefore intend to establish a Press and Broadcasting Centre (PBC) in the existing HKCEC to cater for the needs of both the electronic and the print media during the handover period.

7. This centre will act as an on-site operational base for both local and overseas journalists covering the Ceremony and other events. It will also serve as the major contact point between the Government and the media for dissemination of information on Hong Kong in general and the handover in particular, as well as serving as a venue for media briefings, press conferences or notification of upcoming events.

8. In addition, we will provide live coverage of the Ceremony and related events by transmitting the video and audio signals from these events to the PBC for distribution to around 100 broadcasters who have so far indicated their interest to cover the events. We will also show the live signals on large video screens mounted in the PBC for print journalists who want to be kept abreast of developments. The main features of the planned PBC are at Enclosure 2.

9. As the establishment and running of the PBC will require a high level of technical expertise, we will appoint a contractor to design, construct, equip, operate, maintain, manage, and decommission the PBC. We estimate that the overall cost for this item will be about $85 million which covers the setting up and running of the PBC, venue rental and satellite uplinking facilities.

(II) Handover Ceremony - venue preparation

10. We will hold the Ceremony in the Grand Foyer of the new Extension to the HKCEC. We will need to set up the venue to provide facilities for the participants, the guests and the media. This will include minor internal modifications to the Grand Foyer to suit the event, seating, lighting and sound systems. We estimate that the cost for venue preparation will be about $16 million.

(III) Receiving and accommodating foreign dignitaries and other official guests

(a) Transportation

11. We will provide transport for our visitors from overseas. The exact level of provision will depend on the seniority of the visitor, and will range from coach transport between airport and hotel at one end of the scale to a chauffeur-driven saloon car for the entire duration of the visitor’s stay for the most senior visitors. We estimate that we will require about $6 million for this service.

(b) Hotel accommodation

12. We will provide hotel accommodation for heads of overseas delegations invited to attend the Ceremony. On the basis of reserving about 100 suites for the purpose, we estimate the cost for this item to be about $6.5 million.

(IV) Cultural, entertainment and community activity programmes

13. To complement the Ceremony and to facilitate wider community participation, we plan to organise a variety of cultural, entertainment and community activities ranging from district-based functions to major events of territory-wide interest. We estimate the cost of organising these programmes to be about $40 million.

(V) Miscellaneous expenses

(a) Pre-ceremony reception and dinner

14. As the Ceremony will take place around midnight on 30 June 1997, we plan to hold a reception and dinner beforehand in the HKCEC Extension. On the basis of 4 000 guests attending the Ceremony, we estimate that the cost will be about $6.5 million.

(b) Accreditation

15. To ensure the smooth management of the events, we will need an efficient system to control access to venues associated with the Ceremony, including the PBC. We will therefore develop a suitable accreditation and badging system. We estimate the cost for providing the equipment and the personnel for the accreditation work will be about $7.5 million.

(c) Temporary staff

16. We will need to hire temporary staff to undertake various duties such as airport reception, ceremony reception, ushering and miscellaneous duties prior to and during the Ceremony. We estimate the cost of engaging temporary staff to be about $3 million.

(d) General publicity

17. ISD will be responsible for co-ordinating overall publicity activities relating to the Ceremony. The activities will include production of publications, general advertising, and other promotional activities. We estimate the cost of organising general publicity activities to be about $8.5 million.

(VI) Provision for recoverable hotel room deposits for other overseas guests

18. As stated in paragraph 12 above, we will only provide hotel accommodation for a small number of senior overseas guests. However, to ensure that sufficient hotel rooms will be available for other overseas guests, we need to reserve rooms in sufficient numbers for them now. In view of the heavy demand on rooms around that period, hotels have asked for the payment of deposits to secure the reservation of the rooms. On the basis of reserving 1 500 rooms, the total financial implication for paying deposits for these rooms is about $36 million. We consider that as part of our overall efforts to ensure the smooth organisation of the Ceremony, we should undertake to pay the deposits in the first instance. The deposit paid will be fully recoverable.

FINANCIAL IMPLICATIONS

19. SHA estimates the cost of holding the Ceremony and the related activities to be $233 million, made up as follows -

* Due to the need to make early payment for hotel deposits, we have already approved a commitment of $5.1 million under delegated authority. Subject to Members’ approval of the present commitment, the commitment will be subsumed.

20. SHA estimates that the cash flow pattern will be as follows -

21. Subject to Members’ approval of the proposal, we will provide the necessary funds in 1996-97 by deleting an equivalent amount from Head 106 Miscellaneous Services Subhead 789 Additional commitments. We will also include sufficient provision in the 1997-98 draft Estimates for the purpose.

22. We expect that some other branches/departments will be involved in the Ceremony and may require additional staff or resources, for example, those in connection with security arrangements. The various branches/departments concerned will absorb these requirements either under their existing provisions or by redeployment. arrangements.

Revenue

23. As mentioned in paragraph 18 above, we expect to recover the $36 million earmarked for the payment of hotel room deposits from payments made by the overseas guests who will be paying for their own hotel accommodationback into General Revenue.

24. We will require the PBC contractor to devise a set of rate cards for the purpose of recovering partially the cost of setting up and running the PBC.

BACKGROUND INFORMATION

25. The British and Chinese Governments have reached agreement on 26 September 1996 to hold jointly a solemn and dignified handover ceremony for Hong Kong around midnight on 30 June 1997. Details of the agreement have been provided to Members in a Legislative Council Brief on 27 September.

Home Affairs Branch
October 1996

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Enclosure 1 to FCR(96-97)64

Agreed Minute of the Sino-British Joint Liaison Group on the

Handover Ceremony for Hong Kong

1. The British and Chinese sides in the Joint Liaison Group have discussed arrangements for a handover ceremony for Hong Kong to be held jointly by the British and Chinese Governments around midnight on 30 June 1997 (hereinafter referred to as "the Ceremony"). The two sides have reached consensus on a number of key issues, as follows -

I. General Principles

1. A solemn and dignified ceremony will be held jointly by the two Governments around midnight on 30 June 1997 in Hong Kong.
   
2. The Ceremony will mark the British Government's restoration of Hong Kong to China and the Chinese Government's recovery of Hong Kong, resumption of the exercise of sovereignty over Hong Kong and establishment of a Hong Kong Special Administrative Region, as provided for under the Sino-British Joint Declaration on the Question of Hong Kong. The Ceremony will also cover the transfer of defence responsibilities.

II. Specific Arrangements

On the basis of the above-mentioned principles, the two sides consider that the following specific arrangements will apply -

1. The Ceremony will be held in the Grand Foyer of the new Extension to the Hong Kong Convention and Exhibition Centre.
2. The Ceremony will be presided over by senior representatives of Britain and China, with military honour guards and military bands of the two states present. The Ceremony will include a formal salute by the military honour guards and speeches by the senior representatives of the two sides. Following these, immediately before midnight, the British national anthem will be played as the Union and Hong Kong Flags are lowered. Immediately after midnight, the Chinese national anthem will be played as the national Flag of the People's Republic of China and the regional Flag of the Hong Kong Special Administrative Region are raised. Appropriate arrangements will be made for dignified and ceremonial departure of the British civilian and military representatives following the Ceremony.
3. The Ceremony will be witnessed by guests from Britain, China and Hong Kong and guests from overseas, including high-level representatives from countries and international organisations to be invited by the British and Chinese sides.
4. Chinese, British, local and international media will be welcome to attend and report freely on the Ceremony and will be provided with appropriate facilities including a Press and Broadcasting Centre. Hong Kong's normal media accreditation and pooling procedures for major events, based on internationally accepted practice, will be applied. British and Chinese officials will discuss the media requirements further within the framework of normal internationally accepted practice.
5. The Hong Kong Police will be responsible for planning and implementing arrangements for the security of the Ceremony and of all those participating in or observing it. The British and Chinese sides will fully discuss the security requirements.

III. The two sides have agreed to continue discussions in the Sino-British Joint Liaison Group with a view to reaching early agreement on the detailed arrangements for the Ceremony.

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Enclosure 2 to FCR(96-97)64

Main Facilities for the Press and Broadcasting Centre

(I) Broadcasting Centre

1. A master control centre for receiving video and audio signals from the handover-related event venues and for onward distribution to the local and international TV and news organisations
2. TV booths for TV organisations
3. Studios for TV and radio organisations on bookable basis
4. Movable partitioned booths (the partitioning to allow for the cubicles to be expanded and cubicles/booths available for rent)
5. Satellite uplinking facilities

(II) Press Centre

1. A variable configuration working space for several hundred reporters together with appropriate telephone, fax and data lines
2. Video wall information unit
3. Space with appropriate utility provisions for film developing services
4. Space for media registration and accreditation, security checks, service centre, information counters, social/transportation/accommodation co-ordination, PBC operations and scheduling office, and other services to user organisations

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