XN000022-1995-08-17 — Page 2

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CS refutes special privileges in flat purchase

The Chief Secretary, Mrs Anson Chan, stressed today (Thursday) that she had obtained no special privileges in the purchase of a flat at Villa Monte Rosa.

Mrs Chan refuted suggestions that she had abused her position to obtain a 100 per cent mortgage and set up a company with the intention to avoid tax.

"My husband and I bought the property at a fair market price of $7.8 million in mid-1993. We secured a $7.8 million loan for the purchase from Hang Seng Bank Limited by offering as security this property and another property which we owned. The total valuation of these two properties according to the Bank was $14.6 million. There is no question of the Bank granting a 100 per cent mortgage to me based on the value of the flat at Villa Monte Rosa alone," she said.

"The property was originally owned by a limited company and the previous owner was only willing to sell it on the condition that we bought the company. After seeking professional advice, we accepted this condition," she further explained.

Mrs Chan stressed that she and her husband have at all times acted in accordance with the law. They have met and will continue to meet all their taxation obligations.

End/Thursday, August 17, 1995

Unemployment and underemployment statistics of April to June

The seasonally adjusted unemployment rate for the period April June 1995 was 3.1%, and the underemployment rate was 2.1%, according to the latest labour force statistics released today (Thursday) by the Census and Statistics Department.

The provisional seasonally adjusted unemployment rate for the period May- July 1995 was 3.2%, while the provisional underemployment rate was 2.3%.

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Commenting on the latest figures, a government spokesman said the increased unemployment was mostly from the retail, restaurant, hotel and transport sectors. In the construction sector, there was a decrease in the unemployment rate but an increase in the underemployment rate.