Following is the transcript of remarks by the Secretary for Commerce and Economic Development, Mr Edward Yau, at a media session on the impact of trade conflict between China and the United States (US) on Hong Kong after a meeting with representatives of major chambers of commerce and associations of small and medium enterprises (SMEs) today (September 19):

Reporter: Can you reveal the figures in terms of trade that will be affected by this trade war? How would that affect the overall situation of Hong Kong and Hong Kong's economy?

Secretary for Commerce and Economic Development: In terms of figures, l do not have anything new to add. We have already done some calculations last time that if the US is imposing a US$200 billion list of increased tariff, it would basically affect roughly 49 per cent of Chinese products going to America through Hong Kong.  Those figures are now slightly adjusted downward by half percentage point, because 286 items have been taken out after the public consultation. But by and large, it is still about roughly half of Chinese products going to the US through Hong Kong. The other way round on America's export to China via Hong Kong,  a list worth US$60 billion is now being imposed as a counter measure. That would constitute about 70 per cent of such goods coming from the US via Hong Kong to the Mainland.

     I think it is not just the percentage or the amount. I think what worries the trade is in fact whether this is "that's all", or would there be any topping up again and again. The originally proposed 25 per cent is now down to 10 per cent, but still hanging in the air is that whether the 25 per cent will be kicking in by early next year, if not earlier. These are the difficulties and that is why the uncertainty is still prevailing. Therefore, measures that we are proposing, for instance, the increasing export insurance for SMEs is so important. And that is why we are stepping up measures as outlined just now.

Reporter: What are the sectors that fall victim to this trade war?

Secretary for Commerce and Economic Development: If you look at the list with almost 6 000 items, it basically covers a wide spectrum of products and trade. It involves not just products entirely produced in the Mainland, as in this supply chain situation, this would involve products which are made in various places, some might be assembled in the Mainland. We are talking about a very extensive list, it is hard to pin down on a specific industry, particularly with such a widespread coverage of it.

(Please also refer to the Chinese portion of the transcript.)

     With regard to the momentary hitch experienced with the Air Traffic Management System (ATMS) on August 13, the contractor of the ATMS, Raytheon Company, submitted a report to the Civil Aviation Department (CAD) and provided a long-term solution – a software fix – to solve the problem. The CAD started the on-site testing of the software fix today (September 19) and expects to implement the software fix in the ATMS next month to prevent recurrence.
      
     On August 13, the technical staff switched the ATMS from the Main System to the Fallback System in accordance with the established procedures as two Flight Data Processors (FDPs) of the Main System experienced a momentary hitch. The contractor stated in its report that an unexpected data corruption occurred when the system software was updating the flight route elements. In general, a flight route comprises an array of elements of a particular flight, such as standard instrument departure procedures, standard instrument arrival procedures, waypoints, airways and so on. Due to data corruption, an array of elements of a flight route unexpectedly contained an invalid value. As a result, the software could not continue its processing, which triggered for safety assurance the shutdown of the primary FDP of the Main System as per multi-layer redundancy in system design. It was then followed by an automatic switchover of operation to the secondary FDP, which subsequently shut down for the same reason as per system design (i.e. the detection of an invalid value in the flight route elements).
      
     After the momentary hitch experienced by the ATMS on the day of the occurrence, the on-site technical staff immediately followed up and carried out investigations. Having co-ordinated with air traffic control (ATC) supervisors on-site, the technical staff switched from the Main System to the Fallback System, an independent but identical system with the same design, according to the established procedures. The processing and display of flight data then returned to normal. The occurrence lasted six minutes, during which time the Air Traffic Control Officers (ATCOs) were able to keep direct voice communication with the pilots and provide ATC services at all times. They were also able to simultaneously obtain all flight information that should be shown through the displays using Automatic Dependent Surveillance-Broadcast technology, including full information of the three flights for which only all three essential types of information, i.e. flight position, altitude information and secondary surveillance radar code, could be shown due to the momentary hitch experienced by the FDPs. All professional ATCOs receive rigorous training and have the skills and experience required to deal with unexpected circumstances in accordance with the established procedures, so as to continue to provide ATC services and safeguard aviation safety.
      
     Upon the CAD's request, the contractor conducted an in-depth review on the programme algorithm and coding involving the flight route element comparison, and confirmed that the programme algorithm and coding were in order. Nevertheless, the contractor has provided the software fix to the CAD to prevent the operation of the FDPs from being affected by corrupted data in future.
      
     In the current system design, when the ATMS first accepts the flight route elements, the system will verify the data to ensure the validity. For subsequent updates, the ATMS will check the relevant updates to ensure that only valid data will be accepted, followed by the execution of flight route element comparison. The software fix to be implemented will validate the flight route elements (including the updates) once again (i.e. one additional validation as compared to the past) prior to the execution of flight route element comparison. The following three new features will be introduced in the ATMS through this software fix:
      
(i) when a flight route contains an invalid value, the system will not proceed to the flight route element comparison for that flight;

(ii) the software will stop processing the flight route in question when it encounters the scenario mentioned in paragraph (i). It will then confine the flight route in question and will continue to process information of other flight routes to prevent the FDPs from shutting down and other flight data from being affected; and 

(iii) At the same time, the software will display an alert message to ATCOs and the technical staff together with the relevant flight information for subsequent and separate handling of the flight route in question. 

     The on-site testing of the software fix is in progress. Upon completion of the test and relevant safety assessments by the CAD, the software fix is expected to be implemented in the ATMS in late October. For details of the contractor's report, please refer to Annex.
      
      The CAD set up the ATMS Expert Panel shortly after the commissioning of the ATMS comprising local and overseas experts and academia in the fields of air traffic management, engineering and aviation safety management to offer independent advice to the CAD on the teething issues identified since the full commissioning of the ATMS. The Expert Panel published its final report (www.cad.gov.hk/english/reports.html) in November 2017 which stated that the performance of the ATMS had been exceeding the important safety criteria adopted by most European aviation authorities, i.e. the availability of surveillance information of 99.999 per cent for three essential types of information (i.e. flight position, altitude information and secondary surveillance radar code) since the system commissioning. Although two FDPs of the Main System experienced a momentary hitch on August 13, 2018, all three essential types of information were shown as per system design. The Expert Panel also stated in its report that as the ATMS was a large-scale, complex and comprehensive computer system, minor occurrences would occur intermittently for different reasons (including human factors) especially during the initial stage of its operations. The Expert Panel stressed the importance of a pragmatic approach on resilience and multi-layers of fallback in system design, well-trained professionals with standing procedures for contingency handling and an effective Safety Management System to anticipate and manage risks. The Expert Panel acknowledged in its report that the above mentioned arrangement were all in place in the CAD.
      
     The CAD will continue to closely monitor the performance of the ATMS, and optimise the ATMS as well as overall ATC services in a sustained manner, and remain committed to ensuring that aviation safety is our top priority.

     The Office of the Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the Hong Kong Special Administrative Region (OCMFA) and the Immigration Department (ImmD) jointly held the Launching Ceremony of an Animated Video on Consular Protection today (September 19).
      
     To further enhance public understanding of consular protection and public awareness of outbound travel safety, the OCMFA and the ImmD jointly produced an animated video on consular protection, which will be broadcast through different channels, including the OCMFA's website, the WeChat public account of Consular Express of the Department of Consular Affairs of the Ministry of Foreign Affairs (MFA), the Security Bureau's website and its "Safeguard HK" mobile application, and the ImmD's website and its relevant offices and immigration control points. In addition, it is also available on the ImmD's YouTube channel (www.youtube.com/c/immdgovhkchannel).
      
     The launching ceremony, held at the OCMFA, was officiated by the Deputy Commissioner of the OCMFA, Mr Song Ru'an, and the Director of Immigration, Mr Tsang Kwok-wai. Representatives of the tourism and aviation industries and the media were invited to attend. Apart from the broadcast of the animated video on consular protection, promotional booklets on consular protection were also distributed at the launching ceremony.
      
     Mr Song said that Hong Kong is an international metropolis as well as an open and advanced economy. With outbound travel getting increasingly convenient for Hong Kong residents in recent years, going abroad for work, study, business and leisure have become all the more frequent, leading to a growing demand for consular protection. Over the past 21 years since Hong Kong's return to the motherland, embracing the notion "the safety of Hong Kong people is no small matter; the interests of compatriots are extremely important", the MFA has all along duly handled consular protection cases concerning Hong Kong. In addition, the MFA, the OCMFA and the Chinese diplomatic and consular missions will continue to work closely with the ImmD and put up a protective umbrella for Hong Kong people by striving to ensure the safety and protect the legitimate interests of Hong Kong people travelling abroad, so that they can truly understand that the motherland always stands firmly behind them.
      
     According to Mr Tsang, the Hong Kong Special Administrative Region Government has been closely following the country's lead in consular protection work and attaches great importance to the personal safety of Hong Kong residents travelling abroad. Adhering to its "people-oriented" values and its belief in treating members of the public with compassion, the ImmD has been working in co-ordination with Central Authorities in promoting preventive consular protection. Last year, the ImmD's Assistance to Hong Kong Residents Unit handled a total of 150 000 enquiries and over 3 300 requests for assistance via its 1868 hotline, making great efforts to provide practical assistance for Hong Kong residents in distress outside Hong Kong. In addition, the ImmD worked with the OCMFA on many occasions to promote and disseminate information on consular protection at schools and in communities with a view to bringing the messages on outbound travel safety and consular protection to persons from all walks of life in Hong Kong. Mr Tsang said he hoped that, to forge ahead and contribute to the well-being of the public, the ImmD could deepen its co-operation with the OCMFA. He also thanked the Travel Industry Council of Hong Kong, the travel and aviation sectors and members of the media for their support for the ImmD's various areas of work all along.

  

     The Labour Department launched a prosecution against an employer for failing to pay periodical payments and take out an insurance policy in accordance with the requirements of the Employees' Compensation Ordinance (ECO) for an employee who suffered injuries at work. The employer was convicted at Kowloon City Magistrates' Courts today (September 19) and fined a total of $53,500.

     A blacksmith fell from height and sustained multiple injuries while working on January 22, 2017. His employer failed to pay periodical payments to him on the normal paydays or within seven days thereafter as required by the ECO. His employer also failed to secure an insurance policy for him.

     Section 10(10) of the ECO stipulates that during a period of temporary incapacity, the employer shall pay the injured employee periodical payments at the rate of four-fifths of the difference between the employee's monthly earnings at the time of the accident and his or her monthly earnings during the period of temporary incapacity. The periodical payments are payable on the injured employee's normal paydays. An employer who, without reasonable excuse, fails to pay within seven days after the due day commits an offence. In addition, section 40(1) of the ECO stipulates that employers are required to take out insurance policies for all their employees to cover their liabilities both under the ECO and at common law for injuries at work.

     The Leisure and Cultural Services Department (LCSD) will present a wide range of activities including festive lantern carnivals and an interactive lighting installation to celebrate the coming Mid-Autumn Festival. Admission to all activities is free.
 
     An interactive lighting installation entitled "To the Moon" is on display at the Hong Kong Cultural Centre Piazza until October 1. The installation features two miniature illuminated trains that depart from the former Kowloon-Canton Railway terminus with 10 moons floating up and down with music along the tracks. More than 300 boxes, each containing a moon story, are placed at both sides. These moon stories have been created by local families and each tells a different family tale. In addition, a special event entitled "Storyline under the Moon" will be held in the evening from September 22 to 25, featuring storytelling and lantern making workshops.
 
     Three lantern carnivals showcasing a variety of entertainment will be held at Tai Po Waterfront Park on September 23, at Victoria Park on September 24 and at Tuen Mun Park on September 25. Details are as follows:
 
     1. New Territories East Mid-Autumn Lantern Carnival
         September 23 (Sunday), 7.30pm to 10pm
         Tai Po Waterfront Park
         Programmes: Spectacular Chinese ethnic songs, dances and acrobatics, a Chinese orchestral performance, crosstalk, a band performance, a magic performance with Noh theatre, a harmonica ensemble performance and demonstrations of Guangdong and Hong Kong folk crafts.
         Lantern display period: September 21 to 25
 
     2. Urban Mid-Autumn Lantern Carnival
         September 24 (Monday), 8pm to 11pm
         Victoria Park
         Programmes: Spectacular Chinese ethnic songs, dances and acrobatics, a choral performance, children's theatre performances, a fire dragon dance parade, a lantern riddle quiz, astronomy talks and documentary screenings, a star-gazing activity, a creative market and demonstrations of Guangdong and Hong Kong folk crafts.
         Lantern display period: September 21 to 25
 
     3. New Territories West Mid-Autumn Lantern Carnival
         September 25 (Tuesday), 7.30pm to 10pm
         Tuen Mun Park
         Programmes: Spectacular Chinese ethnic songs, dances and acrobatics, a luminous dragon dance performance, a choral and orchestral concert, a Chinese instrumental concert, pop and street music performances, rhythmic gymnastics, dance and rope skipping performances, Nepalese dance and band performance, and demonstrations of Guangdong and Hong Kong folk crafts.
         Lantern display period: September 21 to 25
 
     The Ningxia Arts Troupe, supported by the Office of Hong Kong, Macao and Taiwan Affairs of the Ministry of Culture and Tourism, will perform spectacular folk songs, dances and acrobatic shows in the three carnivals. In addition, folk craft demonstrations by Guangdong and local masters, including Guangdong paper-cutting, plaster moulding, unicorn paper crafting and Guangcai (Guangzhou famille rose porcelain) craftsmanship, will also be featured.
 
     The carnival sites will each be decorated with dazzling lanterns. With the theme of "Full Moon across the Universe", the Victoria Park carnival will showcase different lighting installations inspired by the starry sky, including "Time Expressions", "Asteroids and Comets" and "Cassiopeia Constellation", presenting a journey into the galaxy.
 
     Another highlight at Victoria Park is an exhibition on traditional paper crafting. Organised by the Intangible Cultural Heritage Office of the LCSD and inspired by the lucky bat decoration used in fa pau (paper floral tributes), a local craftsman handmade some 90 colourful bat-shaped lanterns to create the image of auspicious bats dancing in the sky.
 
     Following themes of "A Walk in the Park" and "Sparkling Joy under the Moon" respectively, Tai Po Waterfront Park and Tuen Mun Park will be filled with festive programmes and displays for members of the public to enjoy in a relaxing atmosphere.
 
     Apart from lantern carnivals, the programme "Youth Night" will be held at the above venues one night before each carnival from 7.30pm to 9.30pm, showcasing the energy and creativity of young people with a variety of programmes.
 
     People are urged not to litter or burn wax while celebrating the festival.

     For more information on the above programmes, please call 2591 1340 or visit the website at www.lcsd.gov.hk/en/eo/territoryevents/midautumnlantern/midAutumn2018.html.