HONGKONG'S first gay and lesbian news magazine is to begin publishing next month. The first edition of the monthly Contacts Magazine is scheduled to appear early in the month and will be distributed free in known gay outlets. Magazine founder Mr Barrie Brandon, who also set up the Gay and Lesbian Help-line a year ago, said: ''The more information that lesbian and gay people have, the more able they will feel to come to terms with being themselves.'' He estimated that there were at least 300,000 gay and lesbian people in Hongkong. The help-line is operated two nights a week and run by four volunteers at a time. About 45 volunteers take part in the service, most of whom are lesbian or gay. Mr Brandon said that generally Hongkong had become increasingly tolerant and liberated and was ready to have its own gay and lesbian news magazine.