LegCo Panel on Security

37. Mr Michael LEUNG agreed to reflect the view that there might be a need to broaden the representativeness of the ORC by appointing representatives from different levels of the community onto the ORC. Mr LEUNG also pointed out that apart from the ORC, the ICAC had an internal group to monitor the performance of individual investigation officers. The group would report any abuse of power of the investigation officers to the Commissioner who would handle the case personally. In addition, all complaints against ICAC officers or procedures would be handled by the independent ICAC Complaints Committee. However, there had not been many complaints against staff of the ICAC and the relevant figures in recent years were as follows :

I. Briefing by the Secretary for Security on the Governor’s Policy Address

(LegCo Paper No. CB(2) 45/96-97)

(LegCo Paper No. CB(2) 81/96-97)

(LegCo Paper No. CB(2) 92/96-97)

(In the absence of a quorum at the beginning of the meeting, members agreed to hold the meeting as an informal briefing. A quorum was subsequently formed at 2:20 p.m.)

Briefing by the Secretary for Security

Action

Mr Peter LAI tabled a "Brief for LegCo on the 1996 Policy Address: Security Branch" for members’ reference. He briefed members on the Security Branch (SB)’s policy objective and some of its main programme areas in the coming year. The gist of his presentation was as follows :

(a) Major achievements

Hong Kong remained one of the safest cities in the world with declining crime rate. With the concerted efforts of the Government and voluntary associations in fighting against drugs, there was a downward trend of young people’s involvement in drugs. Despite these achievements, the SB would continue its untiring efforts to ensure that Hong Kong remained a safe place to live and work.

(b) Areas for improvements

The SB was working to increase the supply of penal places to relieve the overcrowding situation in prisons and to improve the performance of emergency ambulance service.

(c) Preparing for the transition

The SB was working to resolve the outstanding issues on immigration control and right of abode in Hong Kong after 1997, including the question of how non-Chinese nationals would acquire the right of abode and the arrangements for securing a high degree of travel convenience for Hong Kong residents after 1997. It was also working to ensure a smooth handover of defence responsibilities in line with the Joint Declaration and the Basic Law. It sought to achieve these targets by maintaining close liaison and cooperation with the Chinese side.

Mr Peter LAI also highlighted the following two areas of public concern :

(a) Localization of the Official Secrets Acts and adaptation of the Crimes Ordinance

The SB’s objective in this area remained unchanged : to work for the localization of the Official Secrets Acts and adaptation of the Crimes Ordinance in line with the provisions of the Basic Law and the Hong Kong Bill of Rights Ordinance. The SB was seeking the agreement of the Chinese side on the subject to ensure that the relevant legislation could continue beyond 1997.

(b) Vietnamese Migrants (VMs)

At present, the VM population had dropped to about 12,000. Each month, 600 to 700 VMs were repatriated to Vietnam under the Orderly Repatriation Programme (ORP) and 700 to 800 by voluntary repatriation. From October 1996 onwards, the pace of the ORP would be increased to about 1,000 VMs per month. The Administration hoped that this would bring about a corresponding increase in the rate of voluntary repatriation. By maintaining this momentum, the Administration should be able to close the camps before 1 July 1997. Later this week, the Refugee Co-ordinator would discuss with the Vietnamese Government in Hanoi on ways to expedite the clearance for the return of about 4,000 VMs who had not yet been cleared.

Mr Peter LAI concluded that the SB had basically lived up to its commitments in the Security programme area last year and would do so again this year.

[Post-meeting note : The SB’s brief was circulated to absent members and all non-Panel Members after the meeting under LegCo Paper No. CB(2) 81/96-97.]

Discussions

Right of abode in the Hong Kong Special Administrative Region (HKSAR)

Mr Howard YOUNG and Ms Emily LAU pointed out that Hong Kong residents were concerned about their right of abode in the HKSAR. Those staying overseas were particularly concerned whether they were required to return to Hong Kong before 1 July 1997 to retain their right of abode. Mr Peter LAI noted that there were a lot of misunderstandings and concerns about this complicated issue. He pointed out that :

(a) Hong Kong residents who did not have a second nationality

For the bulk of Hong Kong’s population (including BN(O) passport holders) who did not have a second nationality, their position was secure. As agreed by the Chinese side, they had been accorded a right of abode by an amendment to the Immigration Ordinance in 1986/87 and they could continue to enjoy this right thereafter.

(b) Non-Chinese nationals

The area where uncertainty still lied was in respect of the about half a million non-Chinese nationals who had a right of abode somewhere else. They included the so-called "returning emigrants", and the expatriates who were long established residents of Hong Kong. The reason why the position of this category of people was uncertain was because their qualification for right of abode, as defined in the Basic Law, involved a combination of nationality and residence criteria.

In response to members’ enquiries, Mr Peter LAI advised that while the general principles on right of abode in the HKSAR were set out in the Joint Declaration and Article 24 of the Basic Law, the Chinese side had set out their official thinking in more detail in published documents, namely, the Resolution passed by the National People’s Congress Standing Committee on the application of the Chinese Nationality Law in the HKSAR (15 May 1996) and the "Views on the application of Article 24(2) of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China" adopted by the Preparatory Committee (10 August 1996). From these published documents, it seemed that those Hong Kong permanent residents who had migrated and acquired a foreign nationality were allowed several options to maintain their right of abode in the HKSAR. The options available were included in the speech delivered by Mr LAI at a public occasion on 4 October 1996. At Ms Emily LAU’s request, Mr LAI agreed to provide a copy of the speech for members’ reference.

[Post-meeting note : A copy of the speech, as provided by the SB after the meeting, was circulated to members under LegCo Paper No. CB(2) 92/96-97.]

Mr Howard YOUNG asked whether legislative amendments were required for giving effect to the agreements reached with the Chinese side on the subject of right of abode. Mr Peter LAI said as pointed out at para. 4(a) above, the Immigration Ordinance had been amended in 1986/87 to accord right of abode to the Hong Kong residents who did not have a second nationality. The Administration would continue discussion with the Chinese side on the amendments necessary to cover the outstanding issues, such as how the non-Chinese nationals would acquire the right of abode, to ensure compatibility of the Ordinance with the Basic Law.

Issue of HKSAR passports

In response to Dr LAW Cheung-kwok’s enquiry, Mr Peter LAI advised that the British and Chinese Governments had reached an agreement in January 1996 on the respective responsibilities of the Chinese, Hong Kong and the HKSAR Governments in the preparation and issue of HKSAR passports. The Administration had also obtained the LegCo Finance Committee’s approval for the funding of developing a computer system for the issue of HKSAR passports. Mr LAI was confident that the necessary arrangements would be completed in time to ensure the issue of HKSAR passports in July 1997, though not necessarily on 1 July 1997. Meanwhile, the Administration would continue to maintain close contacts with the Chinese side to resolve the technical problems involved.

Localization of the Official Secrets Acts and adaptation of the Crimes Ordinance

Mr CHEUNG Man-kwong noted that legislative proposals concerning localization of the Official Secrets Acts and adaptation of the Crimes Ordinance were not included in the 1996/97 Legislative Programme. He asked whether the Administration would give up introducing the relevant legislation if no agreement was reached with the Chinese side. Mr Peter LAI clarified that as a normal practice, those proposed legislation being discussed with the Chinese side would not be included in the Legislative Programme. However, this did not imply that the relevant legislation would not be introduced into the LegCo. For example, the Administration would introduce the Fugitive Offenders Bill within two months to underpin bilateral agreements signed with other countries on the surrender of fugitive offenders.

On a further question from Mr CHEUNG Man-kwong, Mr Peter LAI advised that the Administration had passed its views and legislative proposals relating to Article 23 of the Basic Law to the Chinese side. Discussion between the two sides on the relevant offences covered under Article 23 still continued. Mr LAI also pointed out that as he had informed the LegCo Panel on Information Policy on 5 July 1996, once consensus was reached with the Chinese side, the relevant legislative proposals would be introduced into the LegCo. If consensus could not be reached with the Chinese side, the Administration would explain to the public the reasons of the disagreement.

Chinese garrison in the HKSAR

Ms Emily LAU noted from P. 19 of the small booklet "The 1996 Policy Address - Security Policy Commitments" that the Administration would "continue to exchange views with the Chinese side on the future legal framework under which the Chinese military forces and their personnel will operate in the Hong Kong Special Administrative Region (HKSAR) in line with the commitments made under the Joint Declaration and Basic Law." Ms LAU asked for the progress of the Administration’s discussion with the Chinese side and the views of both parties on the subject. She also asked whether it was necessary to introduce local legislation to underpin the relevant arrangements.

Mr Peter LAI advised that the Administration had, in various previous occasions, reflected to the Chinese side the existing legislation and practices relating to the operation of the British garrison in Hong Kong and the Administration’s views on the subject. The Chinese side had agreed to discuss the subject. Pending the outcome of the discussion, it was difficult for the Administration to say at this stage whether local legislation would be required.

Ms Emily LAU requested the Administration to disclose the information which had been submitted to the Chinese side. Mr Peter LAI responded that the existing legislation relating to the operation of the British garrison in Hong Kong had been presented to the Security Panel earlier this year. The views of the Administration were also presented at the very last motion debate at LegCo before the summer recess. He considered that in principle, the existing legal system and practices should be important references for the post-1997 arrangements. However, the views of the Chinese side in this aspect were yet to be known.

Handover ceremony in 1997

In anticipation of the large number of official guests and tourists coming to Hong Kong for the Handover Ceremony in 1997, Mr IP Kwok-him was concerned about the security measures for the Ceremony and whether the Police Force had sufficient resources to cope with this tremendous task. Mr Peter LAI advised that as the British and Chinese Governments had just reached an agreement on the Handover Ceremony, it was premature at this stage to discuss the plan for the security measures for the Ceremony in detail. Mr LAI was confident that the Police Force had the competence and experience in performing the task. Moreover, the Police Force had sent a delegation to the Olympic Games 1996 held in Atlanta to see whether the relevant security measures could be adopted in Hong Kong.

The Chairman proposed to discuss this subject at the Panel meeting to be held in December 1996.

Clerk

Vietnamese migrants

Mr Zachary WONG was not optimistic that all the VMs would be repatriated before 1 July 1997. He asked how the Administration would handle those remaining VMs not yet repatriated by that time. Mr Peter LAI reiterated that the Administration would try its best to resolve the problem as soon as possible. The issue would be taken forward in diplomatic exchange with the Vietnamese Government.

Mr Zachary WONG was also concerned whether those 1,300 or so Vietnamese refugees would be able to resettle in third countries by 1997. Mr Peter LAI pointed out that in previous years, the Administration had assisted over 100,000 refugees to resettle in third countries and this year (up to the present), 239 refugees. The Administration would continue to work closely with the United Nations High Commissioner for Refugees (UNHCR) in persuading third countries to accept these refugees. Mr LAI confirmed that if some of these refugees still remained in Hong Kong after 1997, their status as refugees would not be changed.

In response to the Chairman’s enquiry, Mr Peter LAI advised that the UNHCR had reassured the Hong Kong Government that it would continue to assist Hong Kong to resolve the VMs problem after 1997.

Deployment of 350 policemen to perform front-line operational duties

The Chairman noted from para. 4 of the SB’s brief that in order to meet its current year’s commitment, a further 350 policemen would be put in front-line operational duties. He asked whether the 350 posts in question were savings realized from computerization or a deployment of resources within the Police Force. At the Chairman’s request, Mr Peter LAI agreed to provide further information.

[Post-meeting note :Further information provided by the SB after the meeting was circulated to members under LegCo Paper No. CB(2) 168/96-97.]

II. Briefing by the Commissioner, Independent Commission Against Corruption on the Governor’s Policy Address

(LegCo Paper No. CB(2) 82/96-97)

Briefing by the Commissioner, ICAC

Mr Michael LEUNG briefed members on the following papers which were tabled at the meeting :

(a) ICAC Comparative Statistics for the period from 1992 to 1996;

(b) A Press release dated 7 October 1996 on the ICAC Annual Survey 1996;

(c) ICAC Annual Survey 1996 - "Executive Summary" and "Conclusions and Observations"; and

(d) A set of bar charts/graphs illustrating major findings in the ICAC Annual Survey 1996.

[Post-meeting note : The relevant papers were circulated to absent members and all non-Panel Members after the meeting under LegCo Paper No. CB(2) 82/96-97.]

Regarding the ICAC comparative statistics for the period from 1992 to 1996, Mr Michael LEUNG pointed out that in 1996 (January to September), the ICAC had received a total of 2,297 corruption reports (excluding election). This represented an increase of 3% over the total number received during the same period in 1995. Though the figure was lower than those for the same period in 1993 and 1994, it was still on the high side. In the circumstances, the ICAC would remain alert and keep up its efforts in combating corruption.

Regarding the results of the ICAC Annual Survey 1996, Mr Michael LEUNG highlighted the following points :

(a) Public attitudes towards corruption

For four consecutive years, there had been a consistent trend that the younger the respondents, the more tolerant they were of corruption. The ICAC would step up its efforts to enhance moral education training for students at all stages of their academic pursuit. Work ethics training would also be provided to working youths.

(b) Public support to the ICAC

98.8% of the 1,100 respondents perceived that the ICAC deserved their support, representing an increase of about 1% over last year. Moreover, 77.6% of all respondents indicated that they would reveal their identity if they reported corruption to the ICAC. This demonstrated that the public had trust and confidence in the ICAC. 74.1% of all respondents believed that the ICAC’s role would become more important as 1997 drew near, representing an increase of 5.7% point over last year.

(c) Transparency of the ICAC

Only around one-third of all respondents felt that the ICAC had done enough to make its work known. The ICAC would further increase its transparency by organizing more district activities and issuing publications.

Regarding the programme highlights for 1997/98, Mr Michael LEUNG advised that the ICAC would focus its efforts on the following areas :

(a) to improve the accountability and transparency of the ICAC’s work;

(b) to enhance liaison with government departments for preventing corruption;

(c) to enhance liaison with the private sector for further promoting fair and honest business practices; and

(d) to work closely with the Chinese authorities for combating cross-border corruption.

Discussions

Young people’s tolerance of corruption

In response to Ms Emily LAU’s enquiry, Miss Janet WONG confirmed that the ICAC had conducted a survey on ethics among young people and the findings had been released in March 1996. One of the major findings was that 80% of the respondents considered that the ethics standard of young people in Hong Kong would continue to drop. This was consistent with one of the findings of the ICAC Annual Survey 1996 that younger respondents were more tolerant of corruption. However, Ms Emily LAU considered this contradictory to another finding of the ICAC Annual Survey 1996 that 43.4% of the respondents were intolerant of corruption in both the public and business sectors. Mr Michael LEUNG felt otherwise as 43.4% pertained to the general public’s attitude towards corruption whereas 80% pertained specifically to young people’s ethical standards.

At the request of Ms Emily LAU, Mr Michael LEUNG agreed to provide the survey report released in March 1996 for members’ reference.

[Post-meeting note : The "Report on a Survey of Young People’s Attitude towards Work Ethics", as provided by the ICAC after the meeting, was circulated to members under LegCo Paper No. CB(2) 170/96-97.]

In response to Mr Zachary WONG’s enquiry, Mr Michael LEUNG considered that the problem of young people becoming more tolerant of corruption was a social issue. To help improve the situation, the ICAC would step up its anti-corruption efforts to promote a clean and fair community. They included the following :

(a) To enhance liaison with the business community

Under Phase I of the Business Ethics Campaign, the ICAC encouraged the business community to draw up codes of conduct to prevent business malpractice. Up to August 1996, 65% had formulated codes of conduct. The ICAC also set up the Hong Kong Ethics Development Centre to provide corruption prevention services to its clients. In 1997/98, the ICAC would launch a campaign to enhance the standard of work ethics in the community by providing staff training for around 1,000 large companies.

(b) To enhance liaison with schools and voluntary associations

The ICAC would promote positive values and attitudes among young people by boosting moral education in academic institutions. To achieve this, it would join forces with schools to organize talks on moral education, with tertiary institutions to introduce studies in ethics into the curricula of various faculties, and with the Committee on the Promotion of Civic Education to develop reference materials on moral education for teaching purposes.

Corruption reports against government departments and public bodies

Mr IP Kwok-him was concerned about the significant increase in the number of corruption reports against government departments (excluding the Police) and public bodies (10% and 14% increase respectively). At Mr IP’s request, Mr Michael LEUNG agreed to provide further details, such as the government departments and public bodies involved.

[Post-meeting note : An analysis on the increase in corruption reports pertaining to public bodies, as provided by the ICAC after the meeting, was circulated to members under LegCo Paper No. CB(2) 170/96-97.]

In response to Mr IP Kwok-him’s enquiry, Mr Michael LEUNG advised that the ICAC had set up a research group to study, among other things, the upward trend of corruption. The study would cover several aspects, such as the reasons for the increase in the number of corruption cases and the young people’s tolerance of corruption. Mr LEUNG undertook to brief the Panel in due course on the findings of the study.

Mr Michael LEUNG advised that this year, the ICAC would take the initiative to visit various government departments and public bodies to identify areas of work which were prone to corruption and ways for prevention. It would also conduct regular directorate-level meetings with each of the disciplined services to ensure a high level of attention to corruption prevention work and to reach an agreement on anti-corruption strategies.

In response to Mr Zachary WONG’s enquiry, Mr Michael LEUNG confirmed that small corrupt organized groups were found in the disciplined services and certain government departments last year but not this year. Nevertheless, the ICAC would be on the alert to prevent the recurrence of such activities.

Upward trend of corruption in the business community

In response to Dr LAW Cheung-kwok’s enquiry, Mr Michael LEUNG advised that there had been an upward trend of corruption in the business community since the 1980s. In recent years, corruption activities were mainly found in service industries, such as financial, banking and insurance. Such activities normally involved criminal offences under section 9 of the Prevention of Bribery Ordinance.

Building management corruption cases

Mr IP Kwok-him noted from page 18 of the ICAC’s Policy Commitments that the large number of complaints involving building management accounted for 18% of all private sector corruption cases in 1995. He asked whether the ICAC had any concrete plans to tackle the problem such as by providing corruption prevention services to owners’ corporations. Mr Michael LEUNG advised that the ICAC would approach property management companies to offer advice on preventing corruption. Miss Janet WONG supplemented that the ICAC also organized talks at the district level and issued guidelines of corruption prevention to owners’ corporations. In 1995, the ICAC had approached all of the 4,900 or so owners’ corporations in Hong Kong. However, there were certain difficulties in the promotion work involved because members of the owners’ corporations were only working on a voluntary basis and were subject to re-election every year. Despite these difficulties, the ICAC would continue its efforts to liaise with owners’ corporations in promoting the concept of preventing corruption.

Cross-border corruption

The Chairman noted from page 22 of the ICAC’s Policy Commitments that the number of cross-border corruption reports increased by 40% in the first half of 1996, compared with the same period in 1995. He was concerned about the upward trend of cross-border corruption and how the ICAC would tackle the problem. He asked whether the ICAC would deploy more resources to combat cross-border corruption, such as for intelligence-gathering.

Mr Michael LEUNG advised members on the number of cross-border corruption reports in the recent few years as follows :

No. of cross-border

corruption reports

1992 (Jan to Sept) 46

1993 (Jan to Sept) 153

1994 (Jan to Sept) 139

1995 (Jan to Sept) 111

1996 (Jan to Sept) 114

Mr Michael LEUNG pointed out that in 1996 (January to September), the number of cross-border corruption reports represented 5% of the total number of corruption reports. Though the figure was not high, the ICAC recognized that there was a need to step up liaison work with its Chinese counterparts to provide mutual assistance for investigating cross-border corruption cases, such as by exchange of intelligence. In 1996/97, the ICAC had set up a research group for collation and analysis of intelligence on corruption and was installing a local area computer network to facilitate its analysis and investigation. Organizational change would be introduced in the Operations Department and Community Relations Department to enhance cooperation with its Chinese counterparts. This would be achieved initially by internal deployment of resources.

Mr Michael LEUNG also pointed out that most of the cross-border corruption cases involved criminal activities such as drug trafficking. The ICAC would continue to join force with the Police in taking enforcement action against these criminal activities.

Monitoring the ICAC’s investigation functions

The Chairman pointed out that recently, there had been a number of ICAC cases with unsuccessful charges due to insufficient supporting evidence. He was concerned whether the ICAC investigation officers had abused their power in conducting investigations. The Chairman noted that the ICAC’s investigation functions were monitored by the Operations Review Committee (ORC), an independent committee appointed by the Governor. In the past, there had been one LegCo Member serving as member of the ORC but not at present. The Chairman requested the ICAC to reflect his view that a LegCo Member should be appointed to the ORC.

Mr Michael LEUNG agreed to reflect the view that there might be a need to broaden the representativeness of the ORC by appointing representatives from different levels of the community onto the ORC. Mr LEUNG also pointed out that apart from the ORC, the ICAC had an internal group to monitor the performance of individual investigation officers. The group would report any abuse of power of the investigation officers to the Commissioner who would handle the case personally. In addition, all complaints against ICAC officers or procedures would be handled by the independent ICAC Complaints Committee. However, there had not been many complaints against staff of the ICAC and the relevant figures in recent years were as follows :

No. of complaints

against staff of the ICAC

1993 (Jan to Dec) 16

1994 (Jan to Dec) 17

1995 (Jan to Dec) 24

1996 (Jan to Sept) 15

Mr Michael LEUNG said most of these complaints were unsubstantiated.

III. Close of Meeting

The meeting ended at 4:00 pm.