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1. Consistent image the coolest option

2. Are flu vaccinations necessary?

3. No contradiction

4. Hopewell in charm offensive over Mega Tower hotels

5. SHKP buys half of Hung Hom project

6. Tsim Sha Tsui plan seen as pedestrian

7. HK given priority status by Grosvenor Group

1. Consistent image the coolest option
SCMP 5 February 2004

The search for an exciting new identity with which to promote Hong Kong has, in recent times, attracted a bewildering variety of ideas.

According to the government, we are "Asia's world city" but this has always seemed to be more of an aspiration than a statement of fact. And the best way of reaching that goal remains very much a matter of contention. However, we have certainly not been short of advice.

The future Hong Kong, we are told, could be as a science and technology hub or a centre for the arts. The city might become a high-end tourism destination favoured by luxury cruise liners, or a magnet for mainland tourists staying in cheap hotels. An international city and gateway to the mainland? Or a Chinese city and dragonhead for the Pearl River Delta? The phrase "identity crisis" springs to mind.

The latest pearls of wisdom on how to develop the ultimate Hong Kong brand, as reported today, suggest we need to forget images that have worked well in the past. We should, instead, make sure our city is "ultra cool" (which has nothing to do with the inclement weather).

The brains behind a global survey of popular culture trends advise us to ditch our reputation as a city of business, full of energetic and upwardly mobile executives. Instead, it is suggested, we should focus on our emerging creative talents, with the priority being design. This would enable us to better compete with mainland cities that are currently seen as enjoying rather more appeal.

Similar advice, although from a different perspective, came last week from economic development guru Richard Florida. Allowing a "creative class" of writers, artists, doctors and scientists to flourish should be the priority for Hong Kong, he argued. We should stop building bridges and shopping malls and instead enhance our creative energies.

There is merit to be found in each of these theories. We should certainly be cultivating creative talent and allowing it to develop. But this does not solve our image problem.

If we feel a little insecure, it may be because people are continually comparing Hong Kong unfavourably to mainland cities that are perceived to be on the rise. Shanghai in particular, and also Beijing, are viewed as more exciting and romantic. This is to be expected as the mainland develops, but it should not cause us too much concern. Fashions change, and certain places will always be the flavour of the month. Those which, like us, are emerging from a recession are rarely the ones in vogue.

There is no need to rashly seek to emulate other parts of the world. What is needed is a long-term strategy and not one that involves claiming to be something which we are not. A coherent and consistent approach to both policy-making and the way in which we choose to package our city is needed. It also means playing to our strengths. Taking a look at our glorious skyline and famous harbour is a good start. Consider our free way of life, diversity and energy. And think of the opportunities provided by our closer integration with the mainland. These are the foundations upon which to build. And we should not have difficulty promoting them.

Whatever vision for our future emerges during these formative years in our post-handover development, we need to ensure we sell it well. Of all the advice Hong Kong has been offered, perhaps the most useful was that proffered last year by leading image designer Henry Steiner. He pointed out that the image our city has sought to project has, at least in recent years, been a confusing one. We went from being a place where "wonders never cease" to a "city of life" and then "Asia's world city". Consistency should now be the key.

2. Are flu vaccinations necessary?
Letters to the Editor, SCMP 5 February 2004

Was smallpox vaccination ever required for milkmaids? No. In 1776, Edward Jenner noticed that milkmaids who acquired a mild disease from cows called cowpox usually escaped smallpox even when the disease was epidemic in their community. That observation led to the discovery of a smallpox vaccine 20 years later.

Should we require flu vaccinations for Hong Kong poultry farmers and sellers? ("Industry workers have their free flu jabs", February 3). No, of course not, because most chicken dealers have acquired immunity to flu of various forms through their contact with birds. Statistics show that none were among the 2,000 Sars patients in Hong Kong and they seldom suffer flu. On the contrary, vaccination will definitely have a reaction.

In 1966, the WHO began a programme of immunisation to eradicate smallpox throughout the world. It can be eradicated as humans are the only host for the smallpox virus. The endemic nature of smallpox depends on passage from human to human. When the whole population is vaccinated, the chain is broken.

Influenza is different. Both birds and animals are the primary hosts of the viruses. Wild birds and animals infect those in the farms and the virus crosses the genetic barrier to humans. Endemic influenza is natural, especially in this part of the world. Our community policy should focus on the prevention of endemic influenza spreading from human to human to become epidemic.

In 1976, US President Gerald Ford recommended a vaccination programme against swine flu for all Americans. In July of that year, insurance carriers for the pharmaceutical companies cancelled liability coverage for the swine flu vaccine. In August, Congress passed and the president signed a vaccine liability protection bill. The president and his family were immunised on television. The US government pressed on with the programme.

The first shots were given in Indiana on October 1. Ten days later, three elderly people, who had received shots in Pittsburgh, died. Pittsburgh officials closed the clinic and nine states followed suit because more than a dozen persons had died shortly after receiving shots.

As the numbers of immunised people climbed, 54 cases of the Guillain-Barre syndrome (a neurological disorder) were reported and most had received flu shots. By February 1977, over 100 damage claims citing swine flu immunisation were filed. The flu outbreak that winter turned out to be a different type; swine flu was only present in pigs. The swine flu subtype was not even among the targets for the next year's vaccine.

What can we learn from this? We must accept that we live in an ever-changing environment and our viruses, undoubtedly, evolve along with us or adapt to us. A mutation that occurs in a virus once in a million trials may possibly become the virus of tomorrow. If we change the environment - in effect we change the rules for virus selection and new agents will certainly appear.

The government and medical profession should acknowledge and accept responsibility for the consequences in providing 6,000 poultry farmers and dealers with free human flu vaccine. They should provide after-vaccination medical checkups and inform the individuals of the possible consequences, which include mild fever (over 50 per cent of the total), high fever requiring bed rest (up to 10 per cent) and sudden death or Guillain-Barre syndrome (up to 0.1 per cent).

Flu vaccination is not without dangers, especially for those who already have immunity through regular exposure. Perhaps a responsible government should have a sound protection and compensation plan in hand before offering free flu vaccinations to 6,000 poultry farmers and dealers.

K. N. WAI, Eastern District

3. No contradiction
Letters to the Editor, SCMP 5 February 2004

Your February 3 article and leader on Chief Executive Tung Chee-hwa's address to the International Housing Conference suggest there is a contradiction between the government's housing policy and advocates for non-intervention. Your interpretation of Mr Tung's remarks has gone way beyond its real meaning.

What Mr Tung said is no more than reiterate the objective of the government's housing policy. While the government will continue to provide subsidised rental housing for families in need, we have withdrawn from the role of property developer by halting the production and sale of public subsidised flats, thereby minimising government intervention in the market. Meanwhile, we will maintain a fair and stable environment to enable the sustained and healthy development of the property market. We acknowledge that the quantum of private housing production should be for the market to decide.

W. K. LAM, Director, Chief Executive's Office

4. Hopewell in charm offensive over Mega Tower hotels
ELAINE WU, SCMP 5 February 2004

Hopewell Holdings has revised its proposal for the Mega Tower hotels development in Wan Chai to increase the amount of space open to the public. And it is switching tactics from threats to persuasion in the hope of winning over opponents.

It is hoping a 32-page booklet about the plan to be distributed to residents will ease concerns about its $4 billion proposal.

Three months ago, Hopewell chairman Sir Gordon Wu Ying-sheung said students and residents might be prevented from using the lifts at his firm's nearby headquarters, apparently in response to the formation of a residents' group to oppose the plan.

The plans - envisaging towers 58 and 73 storeys high on a site bordered by Ship Street and Kennedy Road - were revised after Hopewell acquired two more properties on Ship Street. But a Hopewell spokeswoman said yesterday the basic building proposal remained substantially unchanged.

The revised proposal will be submitted to the Town Planning Board this month.

Before that, Sir Gordon will meet district councillors to explain the proposal, which involves two hotels with a total of 3,000 rooms and 200,000 sq ft of retail space on the 140,000 sq ft site.

Residents have formed the Kennedy Road Protection Group to oppose the project. They fear increased air pollution and traffic congestion from the development, and falling property prices.

"Many residents called and said that it would block the views," said Mary Ann King Pui-wai, a Wan Chai district councillor. "Unless Hopewell can explain and ease their worries, it will be hard for us [to accept].

"To be fair, I think Sir Gordon respects public opinion to a certain level. I think he is hoping to gain the approval of residents."

The booklet maps the history of the project, conceived 20 years ago, and includes artists' impressions of what the towers would look like from the Tsim Sha Tsui waterfront, Mid-Levels, The Peak and the former Kai Tak airport.

The lifts in the Hopewell Centre have been used as a shortcut to get from Kennedy Road to Queen's Road East since the 66-storey tower opened in 1980. Without access to the lifts, people would have to negotiate several steep flights of stairs.

In November, Sir Gordon said: "I'm seriously considering not allowing the students to use the lifts if their schools don't agree with the [hotel] project." He added he was "not threatening them".

The project has faced multiple hurdles over the years.

5. SHKP buys half of Hung Hom project
Raymond Wang, The Standard 5 February 2004

When the government introduced harbour-view flats for middle-class buyers in its subsidised housing plan on a prime Hung Hom site in 1997, developers and market-watchers worried this aggressive bid to boost home ownership would eventually backfire.

Unfortunately, those worries proved well founded. Nearby home owners, many ending up in negative equity, soon joined developers' calls to topple the plan after the market started what seemed an endless downhill slide in 1998.

The government finally gave in to demands for measures to stop the price drop in 2002, when Secretary for Housing, Planning and Lands Michael Suen announced the shelving of all subsidised housing schemes.

Home owners who watched their flats in nearby Whampoa Garden fall to below HK$3,000 per square foot (from their peak at around HK$7,000 per sqft) no longer needed to worry about prices being dragged down by subsidised homes selling at only HK$2,100 per sqft nearby.

The completed project was taken over by New World Development's (NWD) 27.5 per cent-owned construction affiliate Wai Kee Holdings and 54 per cent-owned infrastructure subsidiary NWS Holdings. NWD had tendered for the Hung Hom site at a land premium of HK$583 million.

Another page was turned yesterday when Sun Hung Kai Properties (SHKP) acquired half the Hung Hom project for almost HK$600 million.

To the delight of secondary market home owners, market watchers believe flats from the project will be sold at as much as HK$4,000 per sqft.

Sale of the residential project, Hung Hom Peninsula with 2,470 units, is pending negotiation between the developers and the government on the land premium they need to pay to reimburse the subsidies offered by government.

Wai Kee Holdings said yesterday it agreed to sell a 50 per cent stake in the Hung Hom Bay project to SHKP for HK$593.2 million.

The deal sent shares of Wai Kee up by 16.24 per cent, to a 52-week high of HK$1.36 per cent. NWS Holdings, which still holds the other 50 per cent in the Hung Hom project, said it has no plans to sell.

An SHKP spokesman said the company will discuss project arrangements with NWS.

NWS corporate communication general manager Kwan Chuk-fai said no detailed plans have been determined as land premium talks are still under way.

Five property developers, including Cheung Kong (Holdings), SHKP and Henderson Land Development, last year expressed interest in bidding for the Hung Hom project to strengthen their foothold in the area. Thomas Kwok, vice-chairman of SHKP, which teamed up with Henderson Land to develop their joint-venture Royal Peninsula development, next to the HOS project, said earlier SHKP was interested in buying the HOS flats, adding the pricing should be close to that of Cheung Kong's Laguna Verde in the same district.

Apartments at Laguna Verde and Royal Peninsula averaged more than HK$4,000 per sqft.

Centaline Property Agency's Whampoa Garden branch manager Norey Tsang said SHKP is likely to launch the project within three months once land premium discussions are settled. Tsang estimated the average price of Hung Hom Peninsula at between HK$3,000 and HK$4,000 per sqft, in line with price levels for secondhand Whampoa Garden units.

Wai Kee said, with the change of government policy over home ownership scheme projects, the property will be changed to a private sector property development.

The consideration is subject to adjustment with reference to the property's valuation.

The company estimated net proceeds from the disposal at HK$490 million. About HK$150 million will be used to repay bank financing of the group, and the remaining HK$340 million proceeds will become general working capital and for investment opportunities yet to be identified.

The disposal comprises Wai Kee's sale of the entire issued share capital of Asian Reward Development, through which Wai Kee holds a 50 per cent interest in the property, and a HK$108.7 million loan.

Upon completion of the deal, Wai Kee will have no obligation to pay any part of the balance of the land premium payable. NWS currently holds the other 50 per cent stake in Asian Reward.

Completion of the disposal is conditional on HSBC consenting to the modification by the government (to a private sector property development), a letter formalising that change, and full payment of the related land premium. The project's unaudited net loss for 2003 was HK$102.3 million. Its unaudited net liabilities at the end of 2003 amounted to HK$154 million, the company said.

6. Tsim Sha Tsui plan seen as pedestrian
Danny Chung, The Standard 5 February 2004

Legislators have criticised officials over a planned facelift of the Tsim Sha Tsui promenade as part of a government drive to attract more tourists.

The criticisms came as officials were briefing the public works subcommittee of the Finance Committee to obtain a green light for several projects, including the promenade project.

Legislator Albert Chan said other promenades around the world have their own special characteristics.

But he can not not see anything worthwhile in the current design.

As an example, he said, the Shanghai Bund has 12 animals of the Chinese zodiac to attract tourists.

He said the atmosphere at these promenades was ``very district-like and very pleasant''.

``Have a look at this drawing, Mr chairman. It's just dreary,'' he said, pointing to an appendix.

``I hope that Hong Kong does not become a laughing stock when the work is completed,'' he said.

``I think this is very humiliating to the people of Hong Kong.''

Chan said he cannot support such a design.

Officials defended their design, saying the main feature of the facelift is a new lighting plan to attract tourists.

The Tourism Commission said the HK$183.2 million project aims to improve the promenade ``as a popular scenic spot for both local citizens and tourists''.

It said: ``Some of the facilities of the promenade are quite old and their designs are not aesthetically consistent with one another.''

The facelift includes replacing the pavement, creating space for street performances and outdoor activities, al fresco dining and landscaping.

The work covers the area around the Cultural Centre to the promenade at Tsim Sha Tsui East.

It also includes a Hollywood-like ``Avenue of Stars'' next to New World Centre that is at present under construction by New World Development.

The facelift is scheduled to start this year and be completed in 2008.

7. HK given priority status by Grosvenor Group
ERNEST KONG, SCMP 5 February 2004

British property giant Grosvenor Group has placed Hong Kong at the top of its investment priority list as it seeks to ramp up its interests in the city's luxury residential and non-core office markets.

Grosvenor Asia managing director Nicholas Loup said Hong Kong's property market was on an upward cycle and now topped the firm's priorities in Asia.

"I can't think of other financial cities around the world that provide such opportunity ... the private sector is already deeply involved with the Pearl River Delta, which makes a great difference with Singapore, which is not connected with anyone," Mr Loup said.

Grosvenor has a US$300 million property portfolio in the Asia-Pacific region, with two-thirds of its properties in Hong Kong. The remaining one-third mainly lie in Japan.

The firm's latest luxury residential project in Repulse Bay, Grosvenor Place, a joint venture with Asia Standard International and Ayala of the Philippines, has a gross floor area of 60,166 square feet and is targeted to sell at an average price of $18,000 per square foot in the coming weeks. That tops the area's current highest price of about $15,000 per square foot.

Grosvenor director John So said favourable factors for Hong Kong's property market included record high affordability, low interest rates and a liquid property market.

"The price will go up once public confidence recovers," Mr So said.

Mr Loup said Grosvenor was interested in investing in the luxury residential sector and the office market in secondary business districts such as Quarry Bay and Causeway Bay.

He said Grosvenor Land Property Fund, a luxury property investment fund that the British developer set up with local developer Hongkong Land in 1999, would spend about US$70 million in buying luxury residential properties in Hong Kong.

Grosvenor is also seeking a single block of offices in the secondary business district for between US$100 million and $150 million.

"Landlords in the core business district are reluctant to sell at a sensible price. Supply for grade A offices - even for strata title - is virtually non-existent," Mr Loup said.