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To: TobagoJack who wrote (32239)	4/23/2003 9:51:54 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

HK unveils $1.5bn plan to soften Sars impact. HK unveils $1.5bn plan to soften Sars impact By Joe Leahy in Hong Kong, Mure Dickie in Beijing and Richard McGregor in Shanghai Published: April 23 2003 18:06 \| Last Updated: April 23 2003 18:06 Hong Kong on Wednesday unveiled an emergency package to cushion the growing economic fallout from Sars as China began a massive crackdown to try to limit the spread of the disease. Hong Kong’s package, worth HK$11.8bn ($1.5bn), or 1per cent of gross domestic product, provides loan guarantees for companies hit by the crisis over severe acute respiratory syndrome (Sars) as well as rent relief and tax breaks, and follows similar moves by South Korea, Singapore and Malaysia. Meanwhile, police in Beijing put up roadblocks on many thoroughfares leading out of the city, closing towns to non-residents and carrying out spot health checks. Authorities in the capital gave about 1.7m students n unexpected vacation by ordering state schools to close for two weeks. The World Health Organisation issued fresh warnings against non-essential travel to Beijing, China’s Shanxi province to the south-west, and Toronto, Canada or at least three weeks twice the maximum incubation period for the disease. Despite efforts globally to quarantine Sars sufferers, the worldwide toll from the disease has climbed, reaching 251 deaths out of a total of 4,461 cases. The World Trade Organisation said Sars would help depress the rise in volumes of global trade to less than 3 per cent after a poor 2.5 per cent rise last year. The Hong Kong relief measures include a 30 to 50 per cent rental reduction for commercial tenants of public housing, and utility fee waivers and salary tax rebates for the general public. The government will also create 21,500 temporary jobs and training places and allocate HK$1bn to promote Hong Kong once the crisis is over. Citigroup said that it expected GDP growth for Hong Kong to drop to 1per cent this year from a pre-Sars estimate of 2.8 per cent, China 6.7 per cent from 7.6per cent, and Singapore 2.4per cent from 3.5 per cent. Tim Condon, an economist with ING in Hong Kong, said the measures were short-term and more would be needed if the outbreak persisted. “If the tourists don’t come back and soon, these measures are going to be just a drop in the bucket,” he said. Separately, South Korea’s central bank said on Wednesday it would earmark Won385bn ($315m) in loans to financial institutions to help support trade financing, as part of a package to cushion the impact of Sars on the country’s exporters. South Korea does not have any confirmed cases but the economy has been hit by reduced trade and travel in the region. Singapore announced a S$230m ($130m) relief package last week. Malaysia is expected to unveil a $1bn-$2bn spending package next month. Meantime, Wen Jiabao, China's premier, is to join south-east Asian leaders in Bangkok next week for emergency talks on the region's outbreak of severe acute respiratory syndrome, or Sars, Thailand's foreign minister Surakiart Sathirathai said on Wednesday. The meeting, between the 10-member Association of Southeast Asian Nations and China, will discuss measures to overcome the virus and encourage the return of tourists to the region. China's participation in the summit, which will also involve countries ranging from Singapore to Indonesia, the Philippines and Vietnam, was important because it showed the region's "close co-operation" in tackling the problem, Mr Surakiart said.