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

Following is the transcript of the media session by the Head of the Central Policy Unit (Designate), Professor Lau Siu-kai, at the Central Government Offices, Main Wing today (June 24):

Reporter: What suggestions are you going to give the government to deal with the problems it is facing now and would you continue criticizing the government...?

Head of the Central Policy Unit (Designate): I'm not going to touch upon this specific policy issue. But the basic problem, the government is going to change its style of governance to connect all the people, to pay more attention to public opinion and to develop a social base of support. That is the general thrust of the government policy or the strategy of governance in the future. But with these groundwork operated, it is much easier for the government to work together with the society to come up with policies which are acceptable to society and is beneficial to Hong Kong.

Reporter: (inaudible)

Head of the Central Policy Unit (Designate): No, basically, I will try to stick to my basic position. I'm an academic. The most important thing for academic is to maintain independence of thought. Even though I'm joining the government, I'm still expected by the Chief Executive, to provide some kind of ideas or thinking, which is somewhat detached, somewhat objective, pay more attention to long-term development, pay more attention to microscopic thinking. This is my job. This is my value to the government, to provide some kind of independent thought to the government and to the officials who are much more concerned about day-to-day operation of the government.

Reporter: (inaudible)

Head of the Central Policy Unit (Designate): I don't see any difficulties at all. I'm going to be very frank and candid with Mr Tung. I am going to give him all the necessary information for him to grasp the political situation and understand public opinion.

Reporter: (inaudible)

Head of the Central Policy Unit (Designate): This is only a hypothetical question. I don't say I will be in that kind of situation. Because after more that 8 months of discussion with Mr Tung, I am pretty sure that we can put together.

(Please also refer to the Chinese portion)

End/Monday, June 24, 2002

NNNN