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18 March 2003
News Stories:March Headlines

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1. IN Leaps and Bounds

2. Slice of Life from the South China Morning Post this week in 1953

3. Cordless phones on trail of mobiles

4. Airport quiet as travellers skirt HK

5. Ongoing tests fail to unmask mystery bug

6. Reports of deadly epidemic' ring out through global media

7. Political activists file complaint to the ICAC

8. Business community fears loss of credibility

9. Top team cannot afford doubts about the integrity of its members

10. Lawmakers demand the details of Exco session

11. From early meetings to a public apology . . . how events unfolded

12. Cartoon

13. Incomplete account of digital certificates

1. IN Leaps and Bounds
SCMP, 18 March 2003

2. Slice of Life from the South China Morning Post this week in 1953
SCMP, 18 March 2003

Airlines were beginning to jostle cruise liner for advertising space. Qantas Empire Airlines' proud boast was that you could Fly the Fastest Route by Qantas to Sunny Australia. It was "less than two days away" by regular Skymaster Service. Pan Am promised to fly you via Tokyo to the US six hours faster than ever before. Sleeperette service was no extra charge, berths were available at slight additional cost and there was the added carrot of magnificent meals and complimentary wine.

The colony was just getting used to the new age of rapid transport. In his talk to the Armchair Group of the European YMCA, Inspector Moor of the Traffic Department was dispensing sound advice: Look to your right, look to your left, look to your right again and then cross the road without running.

3. Cordless phones on trail of mobiles
DEUTSCHE PRESSE-AGENTUR in Hanover, SCMP 18 March 2003

Mobile phones have set the bar - the newest generation of cordless telephones for home use are not only smaller than their predecessors but have also taken on many of the functions normally associated with mobile phones.

''This includes sending and receiving SMS messages over the fixed-line network,'' explained Peter Knaak from the European consumer organisation Stiftung Warentest.

Other possibilities include SIM-card adapters to download phone numbers from a mobile phone to the cordless handset.

Although they have been available since the 1980s, cordless phones are only now exerting real dominance in the home market.

''Consumers are increasingly reaching for cordless telephones,'' said Roland Huenteler, product manager at telecommunications equipment company DeTeWe.

Jan Boettcher of Panasonic agrees. He sees an ever-increasing demand for devices that work with the new Digital Enhanced Cordless Telecommunications (DECT) transmission standard.

The cordless boom can be attributed to a drop in prices - basic models can now be had for about US$60 - and improved signal technology.

The DECT standard is remarkable for its eavesdropping protection, high conversation quality and the possibility to tie various cordless devices to a private telephone set-up.

''Down the road, more and more DECT products will find their way into the lower price range, which will further marginalise analogue cordless phones,'' Mr Boettcher said.

In theory, linking up multiple cordless telephones to a single private telephone plug should work, even if the phones are from different manufacturers. Stiftung Warentest had trouble making this work in practice.

''Receiving calls worked, but the base station refused to work with phones from different brands for special functions such as automated answering,'' said Mr Knaak.

He is sceptical about the practicality of newer models and their ever-increasing palette of functions.

''Cordless telephones are still primarily used to make phone calls. Important buttons such as the one to hang up should be large, distinctively coloured and well positioned for use,'' Mr Knaak said.

Since the differences in use are often significant, he suggests that customers hold the devices in their hands at least once before making a purchase.

Mr Knaak also recommends phones with a good address book function and a large display capable of showing the caller's identity. He said many of even the newest devices suffered from the same flaw as their predecessors - poor battery life.

''Our experience shows that the standard issue nickel-cadmium batteries give up the ghost just as quickly as other batteries, and that supposedly fully charged handsets often turn off after just a few minutes of conversation,'' Mr Knaak said.

High-end models from Siemens, Philips, Panasonic, and Audioline come from the factory with NiMH (Nickel metal hydride) batteries. The DeTeWe models on display at the CeBIT technology fair this month came with traditional, less effective Nickel Cadmium (NiCD) batteries, as do the low- and middle-of-the-road models from other major manufacturers.

Many manufacturers have added cordless data transmission to the basic functions of their DECT models.

DeTeWe, for example, plans to present an ISDN box at the CeBIT fair that will transmit roughly 60 kilobits per second from a notebook computer to the base station. Consumers can telephone at the same time.

Panasonic plans to offer a cordless telephone that has its own connection port. This will allow a notebook computer user to keep connected with the Internet cordlessly while out on the terrace.

4. Airport quiet as travellers skirt HK
CHOW CHUNG-YAN, SCMP 18 March 2003

Chek Lap Kok airport was eerily quiet and tense yesterday as many travellers avoided Hong Kong - and those who had to come here arrived wearing protective masks to guard against the pneumonia outbreak.

Many said they would not have come to Hong Kong if they had any choice and would keep their masks on as they ventured out into densely populated parts of the city.

Visitors from Taiwan and Singapore were particularly nervous after their governments issued public warnings to anyone planning to visit Hong Kong.

Accountant Echo Chen, from Taipei, said she would only stay three hours in Hong Kong before heading to the mainland. She brought a protective mask with her just for this short stop-over. "Of course I'm worried. I have seen on TV many people here have caught pneumonia. If it wasn't absolutely necessary, I wouldn't have come to Hong Kong at all,'' she said.

Fellow Taiwanese Natalia Chen said two thirds of the passengers on board her flight had brought protective masks with them.

"Immediately after the plane landed, people started to put on their masks,'' said Ms Chen.

"Our health department has issued a warning telling people not to come here. I hear dozens of people have already died from pneumonia, haven't they?

"I will leave Hong Kong immediately after I finished my business,'' she said. "I will go everywhere with my mask on.''

Chen Xiu-yu, one of the few Taiwanese visitors arriving here on a holiday, said her family in Taiwan was nervous and would not allow her to come without a mask. "I don't want to wear it but my husband insists. He even called me from Taipei to check if I have the mask on.''

The atmosphere at the airport was calm but tense yesterday. Many airlines have demanded their port managers report passengers with flu-like symptoms after a World Health Organisation warning to the Airport Authority. Even visitors who did not arrive with masks said they were afraid. "I am a bit worried. I will keep away from the crowds'' said Danish businessman Klaus Kristensen.

But some visitors dismissed the fear as media hype. Taiwanese Chen Wai-ne, who arrived at the airport with his family , took off his mask. "I think Taiwan's media is exaggerating a little," he said.

5. Ongoing tests fail to unmask mystery bug
MARY ANN BENITEZ, SCMP 18 March 2003

Since one Hong Kong man fell ill early this month at Prince of Wales Hospital, the mystery pneumonia bug has infected 95 people - half of them hospital staff at four hospitals.

The bug is so infectious that 23 of the man's close relatives and contacts also have come down with the disease. The same mystery pneumonia sickened 305 people in Guangdong, killing five by its peak in mid-February. In Hanoi, an American-Chinese businessman infected at least 32 staff members. Although the World Health Organisation (WHO) admitted as much, a common link is being investigated in the three initial outbreaks. That common link might be the infectious agent. Laboratories in at least five countries have failed to detect any known infectious agent as a cause of the illness. What is known is that it is probably a virus, and is spread by droplets - such as when someone sneezes or coughs - and is not airborne.

Secretary for Health, Welfare and Food Yeoh Eng-kiong said: "One school of thought is that this may be a new virus . . . that originated somewhere else but was brought here and changed its behaviour, or it could be a virus that in its place of origin was not causing problems."

Dr Yeoh, who is chairing an inter-departmental taskforce investigating the outbreak, said: "We do not know about its origin, we do not know about its extent." Chinese University's microbiology professor John Tam Siu-lun said a variety of tests had been run to identify the infectious agent. "We are exhausting all the tests, like flu viruses, all types of bacteria like chlamydia . . . but still we have no results."

A report provided to the WHO on the Guangdong pneumonia outbreak, which peaked last month, said most of the 305 infected people were young adults, with medical staff having a higher incidence rate.

The fever was persistent, with most patients experiencing a dry cough, and sputum was often tinged with blood.

"The progress of the disease is rapid. It is very serious for a few patients, especially for the first case and the cases who were co-infected with bacteria and other pathogens," the report said. The infection seemed to become weaker as it passed from one person to the next. Most were cured after treatment, the report said.

6. Reports of deadly epidemic' ring out through global media
SCMP, 18 March 2003

AUSTRALIA

The Sydney Morning Herald

Isolation plan if deadly Asian epidemic hits Australia - Health authorities have moved quickly to establish isolation and treatment plans if an Asian epidemic of a fast-acting and potentially deadly flu-like illness arrives in Australia.

The Australian

Killer disease sweeps globe - Australians recently in Asia are being warned to see a doctor if they develop flu-like symptoms as authorities scramble to fight an outbreak of a killer pneumonia that has claimed nine lives and put scores of people in hospital in eight countries.

GERMANY
Die Welt

Fear over mystery pneumonia - Passenger from Singapore remains in isolation in Frankfurt. Several die in Asia.

SINGAPORE

The Strait Times

Mystery flu puts four more people here in hospital - Four more people here were warded yesterday with the mystery respiratory illness, which has left at least nine dead worldwide and continues to spread around the globe, aided by international air travel. A total of 20 people here are now down with severe acute respiratory syndrome or Sars, as the disease is now named.

BRITAIN

The Times
Airline passengers spread mystery killer bug - British doctors have been told to look out for the flu-like symptoms and guidance is being prepared for hospitals to treat patients in isolation.

The Sun

Alert as 9 die of jet virus - British air travellers have been warned a killer pneumonia bug is spreading worldwide - and cannot be stopped by drugs. Nine people have died so far and at least 500 others have been infected.

UNITED STATES

The Washington Post

Outbreak originated in China - Illness peaked a month ago; Official media silent - The deadly pneumonia-like illness that was the subject of a World Health Organisation warning originated in southern China in November and peaked a month ago.

The New York Times

China provides information on deadly health threat - Health officials gave the WHO the first, sketchy details about a mysterious respiratory ailment believed to have broken out in Guangdong province.

7. Political activists file complaint to the ICAC
LOUISA YAN, SCMP 18 March 2003

Several political activists filed a complaint to the Independent Commission Against Corruption (ICAC) yesterday, accusing the financial secretary of abusing his power for his own gain in the car-buying controversy.

One day after a police inspector filed a high-profile complaint to the anti-graft body, a group of political activists, including "Long Hair" Leung Kwok-hung, Tsang Kin-shing and Frontier member Andrew To Kwan-hang, went to the ICAC headquarters in Admiralty, asking the commission to carry out an independent and in-depth investigation into the controversy.

A spokeswoman for the ICAC confirmed that a number of complaints had been received. Refusing to comment further on the matter, she said the commission would investigate it through normal procedures.

Mr Tsang said while he believed Mr Leung had abused his power for personal gain, other officials who handled the matter should also be investigated.

"People who are believed to be involved in handling the matter are also in the complaint, such as some Executive Council members and government officials," he said. He refused to reveal any names in the complaint.

"I have specifically asked the commission to make sure that the investigation is fair and independent. If the financial secretary was really involved in any kind of wrongdoing, I hope they would set up a taskforce to take care of the matter," he said.

Frontier district councillor Mr To said he believed the financial secretary had broken the law. He said he was not happy about the way the government had handled the matter.

"The chief executive's open letter [to the financial secretary] on Saturday showed that Antony Leung had actively taken part in the discussion about increasing tax for vehicle registration in October last year. It is not just a matter of a conflict of interest, but also an abuse of power."

8. Business community fears loss of credibility
JOSEPH LO, SCMP 18 March 2003

The car-buying controversy is spiralling into political disaster for the government, observers in the business community believe.

The furore was diverting attention away from more critical issues, such as whether the latest Budget had sufficient depth to tackle Hong Kong's economic problems, they said.

Observers said they were worried that international investors would overlook Hong Kong and choose to invest elsewhere.

"Credibility is of high importance to most investors. And this is certainly detracting from our credibility," said one locally-based US businessman.

Kim Eng Securities head of research Stephen Brown agreed.

"Who cares about the car? [But] on a deeper level, this issue has spiralled. By saying that Leung was 'grossly negligent' in buying the car but not firing him, Tung has set a poor precedent," Mr Brown said.

"Quite obviously, Leung is not negligent but grossly inept. Negligence is something that has to revolve around doing your job poorly. [In making the wrong choice of words] Tung has created a monster by accident.

"Leung will probably have to resign. He has no credibility in tackling the deficit or in talking about the peg. Look at Alan Greenspan, he's got more money than Leung but he's conservative and boring, which is what the business community likes," Mr Brown said.

Last week, Standard & Poor's said that, while the uproar over whether Mr Leung avoided paying taxes on his new car was a "minor affair", it was an example of a loss of cohesion in government policy, due to the administration's new ministerial system.

The new system's delegation of responsibility across the various porfolios meant decision-making was being done by many officials who lacked experience, it said.

9. Top team cannot afford doubts about the integrity of its members
ANALYSIS by CHRIS YEUNG, SCMP 18 March 2003

The financial secretary was atypically economical in his response to a Legco grilling on the car-buying controversy. He should realise his insistence of "negligence" is indefensible and inconceivable - by any standards.

Battered by legislators' harsh words over his integrity and competence, Mr Leung was in no mood to fight back. He would only reiterate that he had no intention of avoiding tax, and that he hoped to serve the community wholeheartedly and strenuously.

Although more details about the case were revealed, at the end of the day the new information is unlikely to prove whether or not Mr Leung deliberately avoided the car registration tax rise, or acted out of gloss negligence.

Predictably, sceptics cast more doubt about his integrity in the wake of unconfirmed press reports about an Executive Council meeting on the morning of March 5 - hours before he delivered his speech.

It was reported that two ministers immediately declared that they had recently purchased vehicles after they were told of the car-tax increases.

Citing Exco's confidentiality rule, constitutional affairs chief Stephen Lam Sui-lung yesterday refused to confirm or deny the reports. Mr Leung has confirmed he did not declare his purchase at the meeting.

If the story of the two declarations is true, Mr Leung would find it hard to explain why he had not woken up to the need to declare his purchase. That said, it is equally hard to find any good reason why he would hide the truth at that stage.

These questions will perhaps never be answered by anyone other than Mr Leung.

Judging from the composition of Legco and the inclination of members as evidenced from yesterday's panel meeting, the government will have enough votes to veto any attempt to set up an independent inquiry on the case.

Government-friendly legislators will argue in favour of giving the benefit of the doubt to Mr Leung, and enable him to get on with his job.

The grim reality is that at a time of strong disapproval of its performance, the Tung team cannot afford for the public to doubt the integrity of its members.

Like it or not, Mr Leung's record will no longer be whiter than white.

The car-purchase case will cause not just political embarrassment to the Tung administration. It has already, and will continue to, inflict damage to the authority and credibility of the ruling team.

Politically and practically, it is inconceivable how Mr Leung will be able to do his job with his integrity and political competence in doubt.

10. Lawmakers demand the details of Exco session
KLAUDIA LEE, SCMP 18 March 2003

Hong Kong legislators yesterday urged the government to disclose what happened at an Executive Council meeting on Budget day, amid suggestions that two ministers declared they had bought new cars after learning that vehicle tax was to be increased.

Events at the meeting are being seen as crucial when considering Antony Leung Kam-chung's claims to have forgotten to make a similar declaration.

Lawmakers yesterday demanded that the government reveal the details of the Exco meeting on March 5.

While refusing to reveal the information yesterday, the Secretary for Constitutional Affairs Stephen Lam Sui-lung promised to present the legislators' requests to the chief executive for consideration.

But Mr Lam did respond to suggestions that there had been a request, or attempt, to revise the minutes of the meeting to protect Mr Leung, saying this had not been the case.

There have been widespread media reports stating that two ministers declared car purchases on March 5 after being told by Mr Leung about his plans to increase vehicle tax.

Secretary for Health, Welfare and Food Yeoh Eng-kiong is reported to have immediately declared that he had ordered a car in January, but that it had not yet been delivered.

Mr Lam is also said to have revealed that he bought a car, in November, and that it had been in use since January.

In contrast, Mr Leung is said to have remained silent, not revealing that he too had purchased a new car, in January.

Speaking in the Legislative Council yesterday, Mr Leung admitted he had not declared the purchase at that meeting. But he refused to comment on whether the other two ministers had declared their own purchases.

Mr Lam was also tight-lipped, facing a barrage of questions from legislators.

The Frontier lawmaker Emily Lau Wai-hing said: "There are other people who make a declaration of interest. Why didn't Mr Leung make a declaration?"

But Mr Lam cited the principle of confidentiality for Exco meetings, saying only that the financial secretary could "reveal his part" because he had been given approval to do so by the chief executive.

But Mr Lam's answer drew criticism from legislators. Democratic Party legislator James To Kun-sun said Mr Tung had been selective in giving such approval. "Is it because there is something that he wants to hide?" he asked.

Liberal Party chairman, James Tien Pei-chun, who is also an Exco member, supported his colleagues' demand for the government to disclose details of the Exco meeting. "They should disclose the details regarding the issue of the first registration tax, so that people can get a clear picture," Mr Tien said.

The chief executive was also urged yesterday to make public the two reports written by Mr Leung explaining the incident on March 10 and 13.

While saying the information about the chronology of the incident delivered to the legislators was a summary of the two reports, Mr Lam promised to seek Mr Tung's approval to see whether the reports could be sent to them.

Ma Ngok, associate professor of the University of Science and Technology, said Mr Leung should have been aware of the possible conflict of interest in the first place. "Especially he had worked in a US bank for so many years and US banks are very concerned about conflicts of interest," Professor Ma said.

While saying the incident had already damaged Hong Kong's international image, he said the accountability system had been adversely affected by it because the government kept protecting him.

"As people become doubtful about his credibility, the damage has already been done," Professor Ma said.

"It's high time that the chief executive reconsidered accepting his resignation," he added.

11. From early meetings to a public apology . . . how events unfolded
KLAUDIA LEE, SCMP 18 March 2003

Antony Leung's version of events and the timing of the Budget Strategy Group discussions on the tax for new vehicles.

July 30, 2002: Preliminary meeting of Budget Strategy Group (BSG) considers items of revenue, including first registration tax for motor vehicles.

October 31: BSG discusses proposed changes to the vehicle tax regime, including increasing the rate for more expensive cars.

End of December: Mr Leung and his pregnant wife decide to buy a new saloon car, believing his Porsche coupe and Toyota jeep would not be suitable for a newborn baby.

January 4 and 5, 2003: The couple visits showrooms to look at Mercedes-Benz, BMW and Lexus cars.

January 11: The couple test drives a Lexus ES300.

January 14: BSG considers that the size of the increase in first registration tax for vehicles should be reviewed further.

January 18: Mr Leung and his wife test drive a Lexus LS430 at a Crown Motors showroom and like the model. Salesman tells them the company is offering a $50,000 discount on the listed price of $728,000.

January 20: Mr Leung signs an order form and pays a deposit of $80,000 by cheque.

January 23: The car is registered in Mr Leung's name.

January 25: It is delivered to Mr Leung's residence.

February 11: BSG agrees to adopt a more progressive tax system for private cars.

February 28: The revenue measures to be included in the Budget are settled.

March 5: Budget Day. First registration tax increase implemented.

March 8: Mr Leung is informed of a press inquiry about his purchase of the car. Tells his press secretary to respond by confirming the purchase. He telephones the car salesman to check on the price before and after the tax increase, and is informed the difference was roughly $50,000. Gives this information to press secretary.

March 9: Mr Leung reads a newspaper article about the purchase. He calls his administrative assistant to seek information about the decision dates on the proposed vehicle tax increase. He is told two papers on the tax were discussed by the BSG around October and February. Mr Leung calls the chief executive and tells him he had no intention to avoid tax.

Mr Leung speaks to the media and offers to donate $100,000 to charity, double what he believed to be the difference in tax. He later learns the difference was $190,000.

March 10: Mr Leung decides to increase his donation to charity to $380,000 and posts a cheque to the Community Chest. He expresses his regret over the matter to Tung Chee-hwa and offers to resign if necessary. Mr Tung speaks to the media. Mr Leung decides to formally tender his resignation. He then provides Mr Tung with a written report of events and later tells the media he accepts the chief executive's criticism.

March 11: He reviews the matter further and realises, for the first time, there had been a BSG meeting dealing with the vehicle tax on January 14, which had not been mentioned in his report. Calls chief executive to tell him.

March 15: Mr Leung receives a letter from Mr Tung saying the mistake warranted a formal criticism, but not resignation. Mr Leung withdraws his offer to resign. He makes a public apology.

12. Cartoon
SCMP, 18 March 2003

13. Incomplete account of digital certificates
SCMP, 18 March 2003

I refer to the Forum article headline "E-commerce growth in HK under threat from tax bill" written by Alan Dyer (Technology section, March 4), which suggested that the government's proposals to allow citizens to submit their tax returns using number passwords instead of digital certificates was a big step backward for e-commerce and consumers.

Unfortunately, the article presented a very biased picture of the issue, neglecting several key elements.

The article made several implicit assumptions, which were that:

- digital certificates are safe;
- digital certificates can be used by all citizens;
- digital certificates would have been a success if they had just been promoted; and
- information technology experts know better than citizens what is best for them.

Unfortunately, all these assumptions are highly questionable.

At present, I cannot obtain a digital certificate in a safe manner, because Hongkong Post has restricted this option to people paying a Microsoft tax (that is, running variant of the Windows operating system).

For all other citizens, you must trust Hongkong Post to generate the certificate on you behalf, which is a massive security hole.

If I visit the ESDLife Web site, it informs me that access to government services requires Pentium-compatible hardware. Strictly speaking, this is not correct, but many of the services have been designed in such a way as to require Microsoft Windows and Internet Explorer for full support, because of how they have implemented digital certificate support and Cantonese support.

I originally applied for a digital certificate, but did not complete the process because I am not prepared to give up my security rights simply because Hongkong Post refuses to support citizens who do not wish to pay a tax to Microsoft.

I would also note that I believe that allowing Hongkong Post to be the monopoly provider of digital certificates is also an unnecessary security flaw.

These are not new issues, and I raised them with the former secretary for the information technology and broadcasting bureau and with Hongkong Post several years ago, but there has been no progress that I can see.

As for Smart ID cards, I note that the government's internal implementation of digital certificates on smart card requires the use of - yes, you guessed it - Microsoft windows.

I will be very pleased and surprised if this problem is fixed for Smart ID cards.

In short, allowing me (as a tax-paying citizen) to access more efficient services, without having to put up with the obvious problems of the current implementation of digital certificates in Hong Kong, is a great step forward. I salute the government for finally paying attention to needs, and not the whining IT "experts" who seem to want to tell us that we cannot choose a "less secure" option.

Mr dyer is welcome to use digital certificates if he wishes, but he had no right to tell me what I must do.

As a citizen, I should be able to choose a secure and efficient operation system for my computer, and not be required to use Microsoft Windows.

Dr. John Bacon-Shone, Director, Social Sciences Research Centre, The University of Hong Kong.




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