XN000022-1997-04-09 — Page 54

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(b) (i) The power companies are aware of the possible impact of the Year 2000 problem on their computer systems and are implementing measures to address the problem. The companies have advised that they will implement corrective measures by early 1999. The Director of Electrical and Mechanical Services will monitor the progress of the companies in implementing the measures, with a view to ensuring normal supply of electricity beyond 2000.

(ii) The Year 2000 problem will not affect the operation of computer systems controlling telephone networks, which is not linked to the "year" field. As regards the impact of the change of the "year" field on the billing and other administrative systems, the Government will remind public telecommunication service operators to take necessary steps to prevent consumers from being affected by billing or other types of errors due to the field change.

(iii) The Hong Kong Monetary Authority (HKMA) drew the Year 2000 problem to the attention of both the Hong Kong Association of Banks and the Deposit-taking Companies Association in 1996. In January 1997, the HKMA wrote to all authorised financial institutions enquiring about the progress on the action they had taken to deal with the problem. Of the responses received, some institutions have confirmed that they are already Year 2000 compliant while the majority of the institutions are progressing towards Year 2000 compliance.

The HKMA will continue working closely with the two Associations to promote awareness among authorised financial institutions of the need to tackle the Year 2000 problem. The HKMA is planning to step up its monitoring efforts with a view to ensuring all authorised institutions will be Year 2000 compliant by December 1998. Where necessary, it may require institutions to submit details of the measures which they have taken, or will be taking, in dealing with the problem. HKMA will monitor the implementation of such measures through their on-site examinations.