APPENDIX I

Annex II

Press Release
(to be issued on 27 October 1998)

        The Secretary for the Civil Service, Mr W. K. Lam announced today that the Government has invited the Standing Commission on Civil Service Salaries and Conditions of Service (Standing Commisson) to carry out a review of starting salaries in the civil service.

        "We need to ensure that civil service starting salaries remain broadly comparable to those in the private sector. In view of the lapse of 10 years since the last review, we feel it is now time to conduct another review," Mr Lam said.

        "The review will be conducted independently by the Standing Commission," Mr Lam said. "We have no preconceived views on the outcome of the review."

        The results of the review and the recommendations of the Standing Commission are expected to be available by mid 1999.

        "After receiving the recommendations from the Standing Commission, we will fully consult interested parties before deciding how best to take these forward."

Civil Service Bureau
23 October 1998