Reply:

30 -

(b) whether the Government has taken any remedial measures?

The US Government amended its procurement regulations, i.e. Federal Acquisition Regulation in December 1995 to implement the World Trade Organisation (WTO) Government Procurement Agreement, which entered into force on 1 January 1996. The revised regulations generally exclude, under the US Trade Agreements Act of 1979, the procurement by the US Government of products of Hong Kong, on the ground that Hong Kong is not a signatory of the WTO Government Procurement Agreement. However, in certain circumstances, such as non-availability or insufficient supply of goods, US government agencies can, in accordance with the relevant US law, purchase products of Hong Kong notwithstanding the exclusion.

As our export trade statistics do not enable us to identify the ultimate buyers of our exports, we cannot ascertain how much of our exports are purchased for US Government procurement purpose. We are, therefore, not able to make an economic assessment of the possible impact of the exclusion on Hong Kong. So far only one firm has raised the issue with us.

We are actively considering Hong Kong's position vis-a-vis the signing of the WTO Government Procurement Agreement. Our aim is to secure an arrangement which will facilitate maximum market access for our producers and will comply with the principles and disciplines of the multilateral trading system.

End

Measures to improve quality of major watercourses

Following is a question by the Hon John Tse Wing-ling and a written reply by the Secretary for Planning, Environment and lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):

Question:

Regarding the water quality of the major watercourses in the territory, will the Government inform this Council of

(a)

the respective gradings of the water quality of the territory's major watercourses;

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