* Dairy found tainted with Melamine

The September discovery of melamine in mainland-made milk products leads to tens of thousands of Hong Kong parents flooding into hospitals to have their children tested.

The scandal would go on to affect other food products such as ice cream, chocolate, candy and biscuits.

To ease the parents' worries, the SAR government opened free assessment services at clinics and hospitals for children under 12 who had consumed melamine-tainted products.

By the end of the year, 13 local cases of children with kidney stones, as a result of melamine consumption, were reported by the Hospital Authority.

The government has since passed legislation restricting melamine levels in foods.

The Center for Food Safety has been charged with testing foods for contamination.

* DAB biggest winner in LegCo Election

The Legislative Council (LegCo) Election in September was the most hotly contested ever, but voter turnout was a mere 45 percent. When all ballots were counted, 17 new faces graced the legislative body.

A record 142 candidates ran for the 30 seats in geographical constituencies. The Democratic Alliance for the Betterment and Progress of Hong Kong emerged as the biggest political party in the LegCo, while Liberal Party candidates were defeated in all direct election constituencies. The latter's chairman, James Tien, and vice chairwoman, Selina Chow, resigned amid the party's failure.

In addition, the election saw younger members in the LegCo, with three of the newcomers aged below 40.

* Lehman Brothers minibond scandal

The September collapse of United States-based investment bank Lehman Brothers triggered a financial tsunami in which 43,000 Hongkongers may have lost a combined HK$15 billion in Lehman minibond investments. The Hong Kong Monetary Authority has received almost 20,000 complaints of mis-selling and referred 238 cases to the Securities and Futures Commission for further action. The legislature also agreed to invoke the Legislative Council (Powers and Privileges) Ordinance to probe the incident. Local banks agreed to buy back the minibonds at market value in response to the government's request, but the plan was later held back due to legal issues.

* Sands lays off 4,000 HK workers

Up to 11,000 Macao construction workers, of which 4,000 are from Hong Kong, lost their jobs in November following a decision by United States gaming giant Las Vegas Sands Corporation to suspend its expansion plans in the city.

The company was working with banks to arrange the project's financing. Construction job prospects have turned gloomier since the outbreak of the financial crisis, as signs of Macao's casino-construction slowdown have been clearly visible in recent months. The local construction sector worries that the return of Macao workers will worsen Hong Kong's unemployment situation.

* Hongkongers stranded in Thailand

Hundreds of Hong Kong residents found themselves stranded in Thailand after the Bangkok airports were overrun by anti-government protestors in late November. The SAR government started chartering planes to Thailand on December 1 to bring Hong Kong travelers back. The move was criticized as coming too late after a Hong Kong man died in a car crash while en route to an alternate airport to catch a flight home.

Many Hongkongers also couldn't make it to the airport in time, and most seats on the chartered flights were unfilled.

The SAR government denied afterward any problems with the principal officials accountability system but promised to review the mechanism that handled such crises.

* Shenzhou-7 astronauts visit Hong Kong

Zhai Zhigang, Liu Boming and Jing Haipeng, the three astronauts from the Shenzhou-7 manned space mission, visited Hong Kong with a delegation from Dec 5-8.

They were invited by the SAR government to share with Hong Kong people the success of the space mission, and they were welcomed with many community activities.

Besides having exchanges with students on their experiences in space exploration, they attended a variety show at the Hong Kong Stadium, and toured Victoria Harbour and the Peak.

The astronauts encouraged Hongkongers to overcome adversity during the economic downturn.

* Central government offers financial aid

The central government pledged 14 measures in December to help Hong Kong deal with the financial tsunami. The measures include expanding the scope of Renminbi business in Hong Kong, an individual travelers scheme, strengthening cooperation between Hong Kong and Guangdong, speeding up infrastructure projects, and assisting businesses. Chief Executive Donald Tsang said the measures will create mutual benefits to both Hong Kong and the nation. Hong Kong-based manufacturers operating in the Pearl River Delta region, and which are close to collapse, welcomed the measures, saying the measures can help them maintain their businesses. Travel agencies also expected a surge in visitors.

* ATV CEO abruptly quits

Asia Television (ATV) Executive Chairman Linus Cheung shocked the news and entertainment worlds by announcing on Dec 15 the resignation of CEO Ricky Wong - only 12 days after he took up the job on Cheung's recommendation - citing severe differences in their working styles.

Cheung also announced that Leung Ka-wing, vice president for news and public affairs and one of the four top executives who quit four days after Wong joined the company, had decided to stay on.

Wong added drama to the saga by announcing late that night he had not resigned. The saga was finally resolved three days later when the ATV board accepted his resignation and appointed him as an advisor.

* Chickens culled in farms

The H5 avian flu virus returned to Hong Kong's farms after almost 6 years, killing 200 chickens in a Yuen Long farm in December.

The government ordered a mass culling of 100,000 poultry at the farm and a nearby one, as well as those in the wholesale market.

Sales of local farm chickens to retail outlets and imports of mainland poultry were banned for 21 days.

Although some trade representatives said the infected farm might have smuggled chickens from the mainland, no evidence of smuggling had been found.

China Daily

(HK Edition 12/31/2008 page1)