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Following is the speaking notes by the Chief Secretary for Administration, Mrs Anson Chan, at briefing for members of the Provisional Legislative Council and members-elect of the first Hong Kong Special Administrative Region Legislative Council today (Monday):

The Secretary for the Civil Service has earlier put to the Staff Sides an offer of 5.79% pay adjustment for the lower and middle pay bands, and 6.03% adjustment for the upper pay band and the directorate, to take effect from 1 April.

This offer was made in accordance with the established pay trend survey mechanism. This is a fair and reasonable basis. We have therefore decided that the pay adjustment for the non-directorate staff should remain as in the offer, i.e. an adjustment of 5.79% for the lower and middle bands, and 6.03% for the upper band.

Hong Kong is now going through a difficult period of adjustment. We fully understand the hardship faced by many in the community. During these difficult times, the public look to the Government in particular the senior levels in Government for leadership.

We understand the expectations of the community. Having considered all factors, we have decided to freeze the salaries of officers at D3 and above for one year.

As regards those affected civil servants who retire this year, we feel that the amount of pensions for them should not be affected by the freeze this year. We will propose to Finance Committee special arrangements for them.

We believe that senior directorate staff will understand this decision which is taken in the best interest of the community.

We hope to demonstrate through our action that Government stands ready to go through difficult times with the community. Like all Hong Kong people, we hope that we can emerge from this difficult period quickly.

End/ Monday, June 22, 1998

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