SITB shares experiences on digital signature framework with Virginia

September 29, 2000

The Government has adopted a three-pronged approach in establishing a digital signature framework to drive e-commerce under the "Digital 21" IT Strategy, the Secretary for Information Technology and Broadcasting, Mrs Carrie Yau, said in The Commonwealth of Virginia Information Technology Conference.

To establish this framework, the Government had put in place the necessary legislation, established a public certification authority, and taken the lead in using these facilities to help drive greater IT use within the private sector and the community, she added.

Mrs Yau was addressing the Conference, which was attended by more than 500 state officials and professionals from the IT industry of Virginia, via video conferencing in Hong Kong last (September 28) night. Mr Donald Upson, Secretary for Technology of the Commonwealth of Virginia, chaired the Conference.

Mrs Yau told the audience that Hong Kong had over the past couple of years devoted a lot of efforts and resources to build a digital signature infrastructure for the conduct of secure electronic transactions.

Noting that Virginia is currently building a digital signature framework and would wish to draw experience from Hong Kong, she said, "In Hong Kong, we enacted the Electronic Transactions Ordinance in January this year which gives electronic records and digital signatures the same legal status as that of their paper-based counterparts. It also guarantees that electronic records can be used to draw up contracts and that such records can be admissible as evidence in court."

The Ordinance also provides the legal framework for the development of a public key infrastructure (PKI). It establishes a voluntary scheme of recognition for certification authorities operating in Hong Kong.

"With the use of certification authority services and digital signatures, we can address the four major concerns in electronic transactions, i.e. authentication, integrity, confidentiality and non-repudiation," Mrs Yau said.

The second prong is the establishment of a public certification authority. The Government has taken the lead to establish such an authority through the Hongkong Post in January 2000.

"It provides services to both individuals and businesses. Its operation is based on a high-trust model, which incorporates face-to-face authentication for subscribers and the use of strong encryption technology," Mrs Yau noted. "There are also other private certification authorities operating in Hong Kong. Tradelink, for example, provides services for local companies to submit trade-related documents like trade declarations and certificates of origin electronically, and has already issued 150,000 digital certificates to over 52,000 corporate clients," she added.

The third prong is for the Government to adopt PKI technology in the delivery of public services. This would set a good model for the private sector to follow. One example is that the Government would launch later this year the Electronic Service Delivery (ESD) scheme which will provide various types of public services on-line to the community 24 hours a day, seven days and week, via the Internet and other electronic devices such as public information kiosks installed at convenient public locations. Through the ESD scheme, members of the public will be able to pay Government fees, submit tax return, register to vote, renew their driving licences or search for jobs on-line.

Another example of how the Government is pump-priming the use of IT is the launching in April this year of the Electronic Tendering System (ETS), one of the world's first web-based Government procurement systems. It covers Government non-works tenders with value up to around US$1.3 million each. So far, more than 330 tenders worth an estimated US$60 million have been awarded through the ETS.

Mrs Yau told the gathering that the establishment of a PKI supported by the use of digital signatures had been a very positive experience for Hong Kong and one that had greatly facilitated e-commerce development.

"It has certainly contributed significantly towards realizing our vision of becoming a leading digital city and a regional e-commerce hub and represents a major step forward for Hong Kong in the new Information Age," she said.

Mrs Yau met with Governor Jim Gilmore of Virginia in Hong Kong earlier this year. The participation in the Conference in Virginia yesterday represented the continuous efforts of the Government to establish co-operation and exchange with other places which were advanced in the development of IT. This would help keep Hong Kong in the forefront of world IT development.

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