XN000022-1996-05-28 — Page 7

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Upon introduction of the new policy, tenants paying double rent or market rent and not in possession of domestic property will enjoy second priority status in the purchase of Home Ownership Scheme flats. Those owning domestic property will have the same status as other public rental housing tenants.

"We will seek to amend the Housing Ordinance to provide for a fine, at three times the rent undercharged for the relevant period, to be imposed upon those found guilty of knowingly providing false information when declaring income and assets," Mr Wong said.

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Estimates of US Special 301 Action's impact on HK's economy

The Hong Kong Government today (Tuesday) announced its broad estimates of the potential adverse impact on Hong Kong's economy, if the United States implemented its proposed Special 301 punitive tariffs on imports from China, and China implemented its counter-retaliation measures.

"According to our assessment, if the US imposed prohibitive tariffs on US$2 billion of products drawn from the preliminary list which it published on May 15, it is possible that approximately four per cent or HK$8.5 billion of Hong Kong's re-exports from China to the US would be lost.

"Taking into account the likely spill-over effects on other trading and economic activities, this could mean a loss of about 7,800 jobs in Hong Kong and a reduction of about 0.27 of a percentage point of the GDP growth in the year of incidence," a Trade and Industry Branch spokesman said.

"As for the Chinese government's counter-retaliatory measures, the assessment is that approximately 12.7 per cent or HK$4.9 billion of Hong Kong's re-exports from the US to China could be affected.

"Taking into account the likely spill-over effects on other trading and economic activities, this could affect about 3,700 jobs in Hong Kong and a reduction of about 0.13 of a percentage point of the GDP growth in the of incidence.

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"So if both governments implemented their sanction action, approximately 5.3 per cent or HK$13.4 billion of Hong Kong's re-export trade (involving China and US) could be lost, about 11,500 jobs in Hong Kong could also be lost and GDP growth could be reduced by about 0.4 of a percentage point in the year of incidence."

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