VZCZCXRO0001
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHHK #1319 1981040
ZNR UUUUU ZZH
R 171040Z JUL 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 8116
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

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.