Norman Chan Announced as New HKMA Chief

UNCLAS HONG KONG 001319

SIPDIS

STATE FOR EAP/CM, TREASURY FOR OASIA

E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL HK

SUBJECT: Norman Chan Announced as New HKMA Chief


1. SUMMARY: As long expected, the Hong Kong government announced
today that Norman Chan will take over as Chief Executive of the Hong
Kong Monetary Authority when Joseph Yam steps down October 1. Chan,
currently serving as Chief Executive Donald Tsang's Chief of Staff,
is well qualified having previously served as Yam's deputy at HKMA.
Chan's position in the Chief Executive's office will be filled by
Raymond Tam, currently Undersecretary for Constitutional and
Mainland Affairs. End Summary.


2. Financial Secretary John Tsang met the press at 5:00 pm today to
announce that Norman Chan will succeed Joseph Yam as Chief Executive
of the Hong Kong Monetary Authority for a five-year term starting
October 1, 2009. The appointment was widely expected. Yam has
headed the HKMA since its inception in 1993 and is well-known as the
world's highest paid Central Banker. Chan won't make as much, the
Financial Secretary told the press the annual salary for the HKMA
Chief will drop 32 percent cut to just HKD 6 million (US$ 770,000).
However, Chan will receive a bonus of HKD 1.5 million (US$192,000)
after he completes the first year of service.


3. John Tsang praised Chan as the right person for the job, citing
his deep understanding of Hong Kong's financial markets and banking
supervision, as well as his experience in international and Mainland
market operations with Standard Chartered Bank. At the same time,
Chief Executive Donald Tsang announced that Under Secretary for
Constitutional and Mainland Affairs Raymond Tam will replace Norman
Chan as the new Director of the Chief Executives' Office effective
August 1, 2009.

Bio Notes on Norman Chan and Raymond Tam


4. Bio Notes on Norman Chan: Chan, 55, is not a stranger to Hong
Kong Monetary Authority. He joined the HKMA as an Executive
Director when it was established in 1993. Chan reportedly worked
closely with then Financial Secretary Donald Tsang, Joseph Yam and
Rafael Hui to carry out the stock-market intervention in 1998 to
fend off international speculators. He was awarded a Silver
Bauhinia Star Medal in 1999. After serving as Joseph Yam's deputy
from for nine years (from 1996- 2005),Norman Chan resigned in April
2005 to study at Harvard University. He returned to Hong Kong in
December 2005 to join the Standard Chartered Bank as Asia Vice
Chairman.


5. In recent years, Norman Chan has developed a close relationship
with Donald Tsang; he was the Secretary General of Donald Tsang's
Chief Executive Election Office in 2005 and Chairman of the Bauhinia
Foundation (a think tank close to Donald Tsang) when it was launched
in 2006. He gave up his HKD 10 million annual salary and accepted
Donald Tsang's invitation to take charge of the Chief Executive's
Office on July 1, 2007. A graduate of the Chinese University of
Hong Kong, Norman Chan joined the Hong Kong Government as an
Administrative Officer in 1976. He was appointed as Deputy Director
(Monetary Management) of the Office of the Exchange Fund in 1991.
He is married to Diana Tong, who is the Managing Director of Hong
Kong's Mandatory Provident Funds Schemes Authority.


6. Bio Notes on Raymond Tam: Tam, 45, was appointed as Under
Secretary for Constitutional and Mainland Affairs on May 20, 2008.
Tam surrendered his British passport upon his appointment. A
graduate of the University of Hong Kong, Raymond Tam joined the Hong
Kong Government as an Administrative Officer in 1987. He has served
in different departments and policy bureaus including the Home
Affairs Bureau, the Central policy Unit, the Office of the Financial
Secretary, the Chief Executive's Office, the Hong Kong Economic and
Trade Office in Geneva and the Information Services Department.


7. In 2001, Raymond Tam was transferred to Financial Secretary
Antony Leung's Office, working as Leung's Press Secretary. Antony
Leung resigned in July 2003 to settle a dispute over his purchase of
a luxury automobile. Tam, a rising star among the Administrative
Officers at that time, was criticized for not reminding the
Financial Secretary to declare his car purchase before holding
meetings with other senior officials on the discussion of tax
increases for imported vehicles. Raymond Tam later was transferred
to the Constitutional Affairs Bureau as a Principal Assistant
Secretary to assist Secretary Stephen Lam to promote political
reform. In 2006, he was appointed Secretary for the Commission on
Strategic Development responsible for collecting public opinions on
the constitutional development plan and organizing the Economic
Summit for the Chief Executive.