XN000022-1996-01-31 — Page 5

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"Furthermore, Germany is well represented in our finance, trade and other service sectors. There are 480 German companies operating in Hong Kong and the number is increasing steadily," she said.

Binding under international law, the Agreement aims to encourage and protect, on a reciprocal basis, investment by investors of one contracting party in the area of the others.

It contains undertakings by the two governments on equality of treatment for investors, proper compensation if investments are expropriated and the free transfer of investment and returns.

Miss Yue said: "We believe that German investors would welcome the added assurances provided by this bilateral agreement to which their own government is a contracting party.

"We hope that the Agreement will boost German investors' confidence in Hong Kong, before and beyond July 1, 1997."

This is the ninth agreement Hong Kong has signed in the area of investment promotion and protection. Hong Kong has also concluded agreements with the Netherlands, Denmark, Sweden, Switzerland, Australia, New Zealand, Italy and France.

The Agreement, upon completion of legislative procedures in Germany, is effective for 15 years in the first instance and will be extended indefinitely unless either side gives 12 months' notice of termination.

End

CAPO procedures to be reviewed

As part of an exercise to improve the system on complaints against police, the Independent Police Complaints Council (IPCC) suggested an experienced Staff Grade Officer be appointed to review in depth existing Complaints Against Police Office (CAPO) procedures.