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Following is the transcript(English part) of a media session by the Financial Secretary, Mr Donald Tsang, after the opening ceremony of Labour Relations - Small and Medium Sized Enterprises 2000 today (October 14):

Q. (about accountability system)

FS: Well, I do not wish to speculate the final shape of the new accountability system. What is important now is to examine the implications involved knowing it is a popular move and it is an important move to make the whole administration more accountable to the public and to introduce a much better relationship at the end of the day between the administration and the legislature.

Q. (about oil prices)

FS: First of all, oil products is a very sensitive item of import to Hong Kong. The government has been monitoring the supply, the demand level as well as the pricing of all oil products. The most sensitive element in oil products is diesel because it affects the transport industry and restaurant operation. These are the main economic units in Hong Kong consuming oil. But in general, oil consumption represents only about three per cent of the total cost profile operating cost of the economy because we have weaned ourselves out of heavy consumption of oil since the last oil crisis, so I do not believe that the recent increases in oil prices will affect Hong Kong's economy directly in a very significant way. If you look at the retail price of diesel in particular, the retail price of diesel now is in fact lower than those prices prevailing in 1997. So you can see that it has not so far affected Hong Kong's economic growth in any big way. But if the Middle East's tension intensifies, if it's going to affect the economic growth in our major trading partners, particularly the cost of the export products and raw materials like those prices in the United States, the Mainland, Europe, and definitely that would affect Hong Kong's economic growth in the longer term and the economic fortunes of our neighbouring economies which are also importing Hong Kong's goods. So indirectly it could potentially be a problem but most important now is to see how the Middle East problem is going to be resolved. I understand now that the major political powers are acutely conscious of the problem, and they will certainly going to make sure that the tension is not going to be worse.

End/Saturday, October 14, 2000

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(Please also refer to the Chinese part)