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

Following is the transcript (English part) of Q&A during the stand-up media session given by the Financial Secretary, Mr Donald Tsang, today (November 27):

Question: Please explain whether the coming into effect of the MPF is the major consideration leading to the freeze in fees and charges this time?

Financial Secretary: I have explained very clearly that we have been monitoring public reaction to the question of fees and charges and the question of fuel costs very cautiously, very carefully almost every week over the last six months. We have now come to the conclusion having taken into account their views, taken into account the inflation rate, and the average adjustment in income level as well as the economic growth. We have also taken into account as I mentioned just now that the contribution towards the Mandatory Provident Fund will begin on December 1. So that was one of the factors which we took into consideration.

Financial Secretary's transcript (Chinese part)

End/Monday, November 27, 2000

NNNN