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The following is the transcript (English part) of a stand-up briefing by Acting Financial Secretary, Mr Stephen Ip, on IMF Staff Mission's Concluding Statement for Article IV Consultation on Hong Kong at Central Government Offices today (November 14):

Ag FS: The International Monetary Fund (IMF) has completed its consultation in respect of the Hong Kong SAR. The IMF is very positive about Hong Kong's economic outlook. Indeed, it forecasts that Hong Kong's Gross Domestic Product (GDP) will grow by 9.5%, which is more optimistic than our own forecast which is 8.5%. We are also glad that IMF recognizes Hong Kong is one of the most open economies in the world. IMF also agrees that Hong Kong will benefit from China's prospective entry into the World Trade Organization (WTO).

Reporter: (How do you see the calls for competition law and IMF's concern on fiscal position?)

Ag FS: I am sure you are all aware that there is an advisory committee looking at tax proposals. So I hope you will give the advisory committee time to consider the issue. On competition, I am glad to note that IMF agrees that Hong Kong is one of the most open economies in the world. Indeed, I think we are also elected by Fortune as the best city for doing business in Asia-Pacific region. In certain sectors, for example, telecommunications and broadcasting, I think there is legislation to encourage competition. And indeed we have a Competition Policy Advisory Group looking at competition issues. I think we take a sectoral approach, that is, if there is a need for more competition in specific sectors, certainly we will consider the need for legislation.

Please also refer to the Chinese part of the transcript.

End/Tuesday, November 14, 2000

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