Dear friends,

The recent terrorist attack has brought extensive suffering and loss to the American People and the whole world was shocked. As Hong Kong has close family and business ties with the US, the challenges and obstacles facing us are obvious. At this time of adversities, we should learn from the American spirit of unity and patriotism which developed after the attack. Our Government, the legislature and all People of Hong Kong must learn to plan and work together in order to bring out our best.

The US aside, we should also take serious note to the recent development on the mainland. First of all, the pre-entry negotiation process for China's admission to the WTO was completed on schedule. We can almost take for certain that China will join this international trading organization within the year. Secondly, the 16th National Congress of the Chinese Communist Party will be held next year and the new leadership will be confirmed. Significantly, President Jiang Zemin has clearly stated, in his speech delivered on 1 July this year, that entrepreneurs would be permitted to join the Communist Party, thus removing the ideological obstacle to political reforms.

The two points mentioned above will have very positive effects on the future development of China. In view of this, in my "Letter to Hong Kong" dated 16 September, I appealed to the Government to assist the commercial and industrial sectors and professionals in Hong Kong to open the mainland market. I also urged the Government to push for equal treatment for our businesses and professionals on the mainland in order to facilitate bi-lateral interflow.

In my "Letter to Hong Kong", I have emphasized that building confidence is an issue that involves the whole community. We should not just wait passively for leadership from above. We must have confidence in ourselves before we can convince others to have confidence in us.

Eric Li

	In the delegation on the Government's "China's Go West" Programme.
As the Honorary President of Hong Kong PHAB Association, attended the PHAB Children Fund Raising Night.
	At a board meeting of SIIC Medical Science and Technology (Group) Limited.
Officiating the opening ceremony of the World Organization for Early Childhood Education in Hong Kong.
	Eric awarded Honorary Doctor of Laws (LLD) by the University of Manchester, United Kingdom, his alma mater, on 15 September 2001. It was the first time in the 150-year history of the University that the President of the University traveled outside the United Kingdom to confer a Honorary Doctoral degree.

COMMITMENT AT THE LEGISLATIVE COUNCIL ( 2001 - 2002 )

LEGCO COMMITTEE

• Finance Committee
  • Public Works Subcommittee
  • Establishment Subcommittee
• House Committee
• Public Accounts Committee - Chairman

PANELS

• Panel on Economic Services
• Panel on Education
• Panel on Financial Affairs
• Panel on Information Technology & Broadcasting

BILLS COMMITTE

• Bills Committee on Inland Revenue (Amendment) Bill 2001
• Bills Committee on Kowloon-Canton Railway Corporation (Amendment) 2001

SUB-COMMITTEE

• Subcommittee on Solicitors (Professional Indemnity) (Amendment) Rules 2001
• Subcommittee on Occupational Safety and Health (Display Screen Equipment) Regulation - (Member attain)

Bull's eye

• Budget deficit estimated to be over $30 billion. Eric Li stressed the need to rebuild confidence and face hardships together
• Comments on children's TV programme appreciated
• Be practical, bold and creative in using business opportunities introduced by China's accession to WTO
• Contribution to Reform of the Medical Council acknowledged
• "Summit on Family Solidarity" a success
• A thank-you letter from the VTC School of Business and Information System for his encouraging message
• Honorary Advisor for the Hong Kong Public Policy Innovation Award

ADVICE FOR ACTION

Vicissitudes of the property market - Sequel

•   Response to the open letter: moratorium on HOS sales
• Increase in bankruptcies causes public concern
• Fiscal reserves: what is taken from the people should be used in the interest of the people
• Airport Authority probably be listed three years later

NEWS DIGEST

• Response to the tax consultation
  • Broadening the tax base far better than consuming the reserves and leaving the problem to the next generation
  • Introducing new taxes - fundamental solution to Budget deficit
  • Reducing individual tax rates
  • Public consultation not undersirable  Broadening the tax base the general trend
• PCG guaranteed sufficient cashflow for Cyberport development
• Eric Li met Antony Leung in private to discuss plans to help the accountancy sector
• Eric Li met the Secretary of Commerce and Industry to convey the hope of the profession to open the mainland market
• Assist small to medium sized accounting firms to open the mainland market