****************************

Following is the transcript (English portion) of a media session given by the Acting Chief Executive, Mr Donald Tsang, after officiating at the Sports Sponsors Luncheon cum Excellence in Sports Marketing Awards Presentation Ceremony at the Grand Hyatt Hotel today (October 30):

Reporter: How much pressures there are for taxes to go up next year?

Mr Tsang: I don't know yet, but I am sure that there is a problem. The problem stems from the fact that we, at least earlier this year, I budgeted a deficit for the coming year, and the revenue I received from the sale of a Mass Transit Railway Corporation minority sale fell short of our original target. But much depends on the revenue that might come in for the remainder of this year. I am expecting some forecast, some estimate later on in November, so that I may be able to make my own plan for the Budget. For the Budget as a whole, please do not speculate. I will have to make up my mind and I have to, anyway, account for it fully in my Budget Speech, and I haven't focused on it yet, or known exactly what I need to do. Much depends on the economic assessment of Hong Kong's performance for the coming two years and having regard to various events happening, the adjustment in the stock market, China's accession to the World Trade Organisation, as well as what is happening in our neighboring economies.

(Please also refer to the Chinese portion of the transcript.)

End/Monday, October 30, 2000

NNNN

Photo: The Acting Chief Executive, Mr Donald Tsang, this (October 30) afternoon attended the Sports Sponsors Luncheon cum Excellence in Sports Marketing Awards Presentation organised by the Hong Kong Sports Development Board. Picture shows Mr Tsang presenting the Best Sports Event Sponsorship Award to representative of the winner Standard Chartered Bank.