It was with great sadness that I learnt of the recent passing of Mr John Black Kite from The Bulletin. I now hasten to send my sincerest condolences to his family and members of the Chamber.

I trust all of us are sustained by happy memories of a wonderful man of great distinction to commerce and industry. His memory will long live in the hearts of all who had the great privilege to know him during his remarkable life.

Daniel Koo OBE
Chairman
Shui Hing (HK) Limited

It is pleasing to note the valuable work the Chamber is doing on environmental matters. Some of your readers may not be aware that the Chamber was a founding member of the Business Coalition on the Environment [BCE] which now comprises 30 local and foreign business associations.

The BCE has been very active this year and we were pleased to meet with the Chief Executive in June to outline the business community's concern over Hong Kong's environment and our support for the administration's proposals outlined in the 1999 Policy Address. The BCE has recently made a comprehensive submission to the Chief Executive regarding the 2000 Policy Address.

As part of our education programme, we have continued with the practice of organising luncheons with prominent environmentalists as speakers. Our most recent event was addressed by Amory Lovins from the Rocky Mountain Institute.

We look forward to continuing Chamber support for our efforts.

Barrie Cook
Convenor
Business Coalition on the Environment

90% Mortgages Win-Win Situation

The Hong Kong Mortgage Corporation recently extended the Mortgage Insurance Programme (MIP) to cover the Loan-to-Value ratio up to 90 per cent, from 85 per cent previously. This effectively reduces the initial down-payment required for mortgages and makes home ownership more accessible. It also has given the market a psychological boost, which improves market sentiment and encourages prospective buyers to shop around.

Some people expect the impact of the extension programme to be limited. They argue figures show not more than 2,000 mortgage insurance applications were received for the first six months of this year. Limited demand reveals mortgage insurance and the home market are not closely correlated. Banks are also likely to offer less generous loan terms, or higher premiums. In short, buyers do not benefit much from the expanded scheme.

The above arguments sound reasonable, but an increasing number of people visiting flats and a slight increase in asking prices prove that the expanded MIP is having a positive effect. It also, of course makes home ownership easier. The effect may be short term, but it is definitely a good step and creates a "win-win" situation both for buyers and bankers.

Ricky Wong
Director
Harriman Realty Co. Ltd.

***

As last minute entries my wife and I participated in the Chamber's eight-day study mission to China's world famous Silk Road.

We travelled from Hong Kong to Xian in Shaanxi Province, from there to Lanzhou and Dunhuang in Gansu Province and further westward to Urumqi in the autonomous Xinjiang region. We viewed the 8^th and 9^th world wonders: the Terra Cotta Warriors in Xian and the Mogao Caves in Dunhuang. We had an exciting camel ride at 5:30 a.m. to the Mingsha Sand Dunes. We met with provincial governors and city mayors. We ate mutton and camel feet, and other exotic dishes. We stayed in five-star hotels and had wonderful weather all the way. In between the group held extensive business discussions with the local authorities, whilst the ladies went on well-organised sightseeing trips.

Frankly speaking, in all my years of travelling to various cities in China, this tour was by far the best organised and most enjoyable one. Our compliments go to the Chamber and its qualified staff. The trip was more than value for money and hopefully a similar trip for those Chamber members who missed out this time will be organised again in future.

JBM Litmaath
Chairman
Scarfell Enterprises Limited

Reader likes new Bulletin

I was at a luncheon lecture by Avory Lovins today at the Island Shangri-La Hotel and picked up a copy of your publication. I liked it. First there was a good article on "The Harilela Empire." For the decades I have lived in Hong Kong, this is the first time I could read the happy story. Then the article on the West Rail had information which I have never read of before, which I appreciate.

I wonder how you will write up Lovins' lecture?

Harold Naylor
Wah Yan College