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Following is the transcript of the Financial Secretary, Mr Donald Tsang's photo session today (Tuesday) to reveal the cover design of his Budget Speech for 2000-01:

Financial Secretary: This year I have chosen a colour of sky blue, which indicates a cloudless sky early in the morning. The characters are set in light gold, like a morning sun. It gives me a sense of serenity, peace, freshness and energy. It's symbolic of a new century. The title is, there are of course three ideas, two expressed in the Chinese Title, and one expressed in the English Title. The Chinese Title, the first four characters mean "Creating wealth through adding value". That's the whole purpose of preparing the budget, and hopefully this will be what this budget will particularly achieve. And the second phrase, also four characters, is "Benefiting people through cutting costs". That reflects a very clear message given to me during my consultation exercise with the community, with Legco members and members of the media. The results of course is, I hope, we are going to "Scale New Heights", which is the Title I've given to the English version.

This year, I have prepared two versions of the speech, one is a bound version which I use for our honourable Legislative Councillors, and overseas commentators and so on. But there are a lot of members of the public who like to read it first hand, very quickly, and they might not wish to keep it. For that reason, we have produced a very environmental friendly version. Using tighter script, presentation is equally good, but is a lot cheaper. So, we have produce this version addition for distribution widely. But the most favoured version I would ask people to use is to look at our web page. The speech will be uploaded on our web page almost simultaneously tomorrow, and this is on our web page the address you know is www.info.gov.hk. This would be a very serious Budget. I may tell you a little bit, it's longer than last year, quite rich in content. I hope you like it.

Reporter: My question follows on the IMF caution that it might not be good time, raising tax in a fragile recovery....

Financial Secretary: It is not the IMF wording. They are a bit worried about a major structural exercise which might have an inhibiting effect on a recovering economy. That is deeply appreciated by the Hong Kong people at large and it's one of our main worries too. But I think the (IMF) report also mentioned quite clearly that we need to look at radically our own tax system, given a globalisation of the local economy and also the way in which revenue trends are developing. So, this is the serious subject which I need to address tomorrow.

Reporter: Some people may fear the new heights you are referring to are new heights in terms of a raise in revenue, and also with the slight haze will it be really blue for Hong Kong?

FS: Well the sky is pretty blue. I saw it this morning. When I came out it was really brilliant sky this morning than was yesterday. And the market tells you the full story too. So it is not for me to elaborate. People can put in all different meanings to the words which I used and this is unfortunate. That "scaling new heights" - the heights which I mean is the heights for economic achievements, what Hong Kong is able to do in the coming decades. That is what I mean. That I think which the community will do and deliver.

Reporter: One way to relieve the most concerns that you mention you share with the IMF would be to widen up the bottom of the tax pyramid. Will you be addressing this as well in your budget in itself? Can you give some indication how?

FS: I will not be able to give you any indication. It will be unfair. But I will deal with this subject quite fully. I have been saying this for the last couple of months. My concern about our tax base, our tax net and so on. But these are serious subjects which I need to address tomorrow.

Financial Secretary's transcript (Chinese Part)

Photo:

Photo 1: Financial Secretary, Mr Donald Tsang, at a photo session to introduce the cover and colour adopted for the 2000-01 Budget Speech before revealing the content tomorrow.

Photo 2: Financial Secretary, Mr Donald Tsang, holding the 2000-01 Budget Speech entitled "Scaling New Heights" at a photo session at the conference hall, New Annexe of Central Government Offices.

End/Tuesday, March 7, 2000

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