XN000022-1997-01-06 — Page 2

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ESB responds to enquiries on HK Electric corporate restructuring

In response to press enquiries on the corporate restructuring proposals involving the Hong Kong Electric Company, a spokesman for the Economic Services Branch said today (Monday) that the relationship between the Company and the Government is governed by the Scheme of Control Agreement between the two parties.

He said that the corporate restructuring proposals involving the company announced today appear not to precipitate any changes in this relationship, therefore the interests of consumers will not be affected.

He said that the Scheme of Control Agreement does not require the Government to be notified in advance of change of ownership of the company or of any changes in shareholdings in the company. Therefore the Government has no role in the restructuring proposals.

The current Scheme of Control Agreement between the Government and Hongkong Electric was signed in 1993 and lasts until 2008. It enables the Government to monitor the financial affairs of the electricity-related activities of the Hongkong Electric Company.

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Government creates best environment for technology promotion

The Financial Secretary, Mr Donald Tsang said today (Monday) that in the promotion of technology, the most important role of Government was to create the best environment for technological innovation and application to emerge and mature.

Speaking at the opening ceremony of the Technology Week '97 at the Hong Kong Convention and Exhibition Centre, Mr. Tsang said Hong Kong as the freest economy in the world had created a highly competitive and efficient economic system where technological pursuits might thrive in all sectors of the economy.

"The system is reinforced by the rule of law, including the protection of intellectual property rights for innovations and inventions, a level playing field, as well as the free flow of information," Mr Tsang said.