HONG Kong Monetary Authority chief executive Joseph Yam Chi-kwong has defended the planned $ 485 million price tag for hosting the 1997 meeting of the World Bank and International Monetary Fund (IMF).

Questioned yesterday by the Legislative Council's finance committee, he said that playing host to the conference involved providing services and a venue for the conference.

He said the venue was to be the Convention and Exhibition Centre.

The conference is expected to draw 10,000 participants, including 3,000 official delegates, 1,000 guests and observers, 3,000 visitors, 1,000 World Bank and IMF staff and 2,000 media representatives.

ccording to the authority, it would have to spend about $ 54 million to rent and convert the Convention Centre in July and August 1997.

The authority had to provide 850 office units for senior officials, delegates, executive directors and staff of the World Bank and IMF and their joint secretariat.

The authority said past experience of such conferences suggested that meetings, including the plenary and ancillary sessions, would last for about 10 days and there would be 3,000 formal and informal meetings, press conferences, seminars, social functions and other events organised over the period.

As well, it would have to provide transport facilities, and set up a special reception lounge at the airport and protection for some delegates.

Providing meeting and office venues would be the biggest item of expenditure, it said.

Hosting would mean help from police, the Immigration Department, the Civil Aviation Department and the Government Information Service.

lthough the authority was seeking to recoup some costs through sponsorship, it was still too early for potential sponsors to commit themselves, Mr Yam told the committee.

He said it would bring tangible and intangible benefits to Hong Kong. PAGE 107 South China Morning Post, July 7, 1995

The authority has estimated that the meeting would generate about $ 400 million income for Hong Kong.

This included 10,000 participants with projected per capita spending of $ 4,000 per night in 1997 prices for 10 nights.

"There will also be intangible benefits to Hong Kong," he said.

The presence of the world's leading finance ministers, central bank governors and top commercial bankers in Hong Kong so soon after the change of sovereignty will help boost international and local confidence in Hong Kong.

"The meetings will also underline Hong Kong's status as an international financial centre."

Committee member Chim Pui-chung asked if the Government was using the media to promote the conference as a way of limiting potential damage from a magazine article last month suggesting Hong Kong had no future after 1997.

Mr Chim asked Mr Yam for assurances that the authority would do all in its power to contain costs.

"We're not playing fast and loose with money - never," Mr Yam said.

Legislator Emily Lau asked if costs could be cut by using Government facilities, and James Lau, executive director with the authority, said the authority was already discussing ways of using Government cars for the conference.

It hoped to save $ 10 million through sponsorship, Mr Lau said.

he authority said it had approached more than 100 companies to discuss sponsorship.

All rights reserved.