CONFIDENTIAL

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MDLIAN 0074

REVIEW OF TAXATION SYSTEM

7. FRED LI'S MOTION THAT 'THIS COUNCIL URGES THE GOVERNMENT TO SET UP A COMMITTEE, WITH MEMBERS REPRESENTING A WIDE CROSS- SECTION OF THE COMMUNITY, TO CONDUCT A COMPREHENSIVE REVIEW OF THE TAXATION SYSTEM IN HONG KONG' WAS DEFEATED BY THE NARROW

MARGIN OF 29 VOTES TO 23 ON 19 FEBRUARY. THE AMENDMENT MOVED BY K K FUNG, WHICH ADDED THAT THE ONE OF THE REVIEW'S MAIN OBJECTIVES SHOULD BE TO REDUCE THE TAX BURDEN OF THE LOWER AND MIDDLE INCOME GROUPS, WAS ALSO DEFEATED (BY 34 VOTES TO 17). CRC AND OTHER LEGCO MEMBERS WITH BUSINESS CONNECTIONS OPPOSED THE REVIEW, WHILE UDHK AND THE OTHER LIBERALS WERE KEEN TO HAVE ONE. THE

DISAPPOINTMENT OF THE LIBERALS WAS AGGRAVATED BY REPORTS THAT

EXCO HAD RULED OUT A REVIEW OF THE TAXATION SYSTEM ON THE EVE OF THE DEBATE.

PRESS FREEDOM

8. EMILY LAU'S MOTION ON 26 FEBRUARY WAS THIS COUNCIL

RECOGNISES THE VITAL IMPORTANCE OF PROTECTING FREEDOM OF THE

PRESS IN HONG KONG AND URGES THE ADMINISTRATION TO DEMONSTRATE

ITS POSITIVE COMMITMENT TO THIS PRINCIPLE BY UNDERTAKING TO

INITIATE WITHOUT DELAY THE REPEAL OF ALL LEGISLATION WHICH IS IN BREACH OF PRESS FREEDOM AS PROTECTED BY ARTICLE 16 OF THE HONG

KONG BILL OF RIGHTS ORDINANCE 1991'. THE DEBATE WENT SMOOTHLY AND THE MOTION WAS CARRIED UNOPPOSED. THE CHIEF SECRETARY, HOWEVER, MADE IT CLEAR THAT THE ADMINISTRATION WAS OF THE VIEW THAT THE LAWS IDENTIFIED BY EMILY LAU WERE NOT INCONSISTENT WITH ARTICLE

16 OF THE BILL OF RIGHTS. HE ALSO ANNOUNCED OUR INTENTION TO INTRODUCE CHANGES TO THE OFFICIAL SECRETS ACTS. THE MEDIA ARE

EXPECTED TO CONTINUE TO PRESS FOR GREATER PROTECTION OF PRESS FREEDOM AND A FREEDOM OF INFORMATION ORDINANCE.

9. ALSO ON 26 FEBRUARY, ERIC LI'S MOTION, THAT 'THIS COUNCIL URGES THE GOVERNMENT TO ADOPT THE PRINCIPLES ENUNCIATED BY THE DRAFT CHARTER FOR YOUTH AND TO SYSTEMATICALLY REVIEW ITS EXISTING LEGISLATION, POLICIES AND EDUCATIONAL PROGRAMMES AFFECTING YOUTH DEVELOPMENT SO AS TO ENSURE THAT THEY ARE COMPREHENSIVE MEETING THOSE AIMS', WAS UNANIMOUSLY SUPPORTED BY THE COUNCILLORS.

FINANCE COMMITTEE

IN

10. THERE WAS ONLY ONE FC MEETING (21 FEBRUARY). ALL PAPERS WERE

PASSED AFTER A SHORT MEETING OF THIRTY MINUTES.

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