XN000022-1995-08-16 — Page 3

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Question: (on the Oxfam Report)

FS: I haven't read it yet. I am waiting for the Policy Branch to give me, not just the report but their own analysis of it, and when that is available I will read it with interest. But I think some of the remarks made by various commentators which grossly underestimate the amount of money that we give to people on CSSA for example, are not helpful to a rational debate. But certainly, we will be giving a more considered view on the Oxfam Report when we have had time to read it properly.

Question: Is it true that the Government is now consulting the Chinese side on (inaudible)?

FS: On the?

Question: On the interest rates.

Question: The IRR, the Interest Rate Rules.

FS: No, I don't think that is a topic at the moment. As I've said, we haven't, ourselves, even come to a provisional view yet, so it is quite early days yet.

Question: But will the Government consider the opinions of the Chinese side?

FS: I expect we will. I expect we will. I haven't given that part of it great thought because, as I say, we haven't, ourselves, yet really had the meetings even to form a provisional view.

Question: Will the Government delay or even postpone the deregulation of the interest rates because of the strong opposition?

FS: Well, all options are open. I genuinely mean it, we haven't made our minds up. We could simply postpone any further changes or we could go ahead with some changes but short of the full Consumer Council recommendations. That is all open at the moment for discussion and the Monetary Authority in particular will be looking at the arguments and then discussing them with me or my successor, depending on the timing.

Question: So there is a possibility it might be postponed?

FS: (To the next questioner) Sorry, yes you.