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Following is the transcript of the acting Chief Executive, Mrs Anson Chan's media session this (Thursday) afternoon:

Reporter: How would you address the worries of civil servants because they are ...

Atg CE: The first point I would make is that the pay freeze was in fact a very difficult decision and a painful decision for us to make within the Government. But I am sure most civil servants will understand that in view of the extremely difficult economic situation and the budgetary situation, and the fact that within the private sector, many have of course already been adversely affected and have had to take a great deal of pain whether in losing their jobs or in having their salaries adjusted downwards.

I am sure most civil servants would accept the pay freeze, and indeed on this front I am extremely encouraged and I think that it is an extremely good gesture on the part of the trade unions, the staff unions, to indicate that they do accept the pay freeze. I think this reflects on the one hand that they are fully aware of the pain the general community is suffering and they are willing to take part with the stream.

I can understand staff unions' concern about whether we are setting aside a long established consultative machinery. And on this front I wish to assure them that indeed we are not. The pay freeze is not a complete departure from our normal concepts. Admittedly, we have not waited for the pay trend survey results. But part of the factors we have to take into account every year is the economic and budgetary situation. And it is on this basis that we have decided the pay freeze. As I have said, I am extremely encouraged that the staff unions have taken a very positive attitude towards this.

As regards consultation on what might or might not happen to civil service salaries in the light of pay trend survey and indeed on the more long term reforms of the civil service as a whole, I simply wish to assure all civil servants that we will be adhering to the consultative machinery. We will take into account the factors that we always take into account in every pay trend survey and review, and so included in the factors would be not only the economic and financial situation but also civil service morale and stability within the civil service.

Reporter: (Birthday wish)

Atg CE: Birthday wish, I haven't specifically thought about the birthday wish. I suppose if you ask me, I would be very happy if I can retain my current health, my work enthusiasm. I think actually at the moment I am probably a very very fortunate person. I have a very supportive family, a job that I enjoy doing and like, colleagues who support me and the community who supports me and my work. And that's what all I think anybody can hope for.

Reporter: ....

Atg CE: You are not going to get me to tell you more than I have already said. And that is, at an appropriate time, I will make an announcement.

End/Thursday, March 4, 1999

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Transcript of acting Chief Executive's media session (Chinese part)