Hong Kong will have to spend $107.8 million for the setting-up of the Special Administrative Region (SAR) government. But Beijing is putting up an interest-free advance payment of $71.4 million, the Chief Executive-designate's office announced. This will cover the cost of the provisional legislature, remuneration for SAR chief Tung Chee-hwa, future secretary of justice Elsie Leung Oi-sie, SAR executive councillors and costs incurred in drafting legislation. The remaining $36.4 million will come from the Treasury. That will pay for 35 members of staff seconded from the Government plus operating costs of $9 million for Mr Tung's office in the Asia-Pacific Finance Tower. Mr Tung has a staff of seven, six of whom formerly worked for his company, Orient Overseas Container, including top aide Stanley Shen. The seventh is Chan Kin-ping, former deputy chief executive of the One Country Two Systems Economic Research Centre and a senior journalist of Wen Wei Po. A spokesman said: 'We manage the budget in accordance with established financial regulations and the principle of prudence. 'We shall give a full account of the actual expenses incurred for setting up the SAR government and seek approval for reimbursement of expenses to the Central People's Government as soon as possible after July 1.' The budget covered the period from December 16, the day Mr Tung was chosen, to June 30. Mr Tung will receive salary and allowances of about $2 million for the 61/2 months. His salary and non-accountable entertainment expenses are assumed to be identical to those of the Governor. About $3 million has been set aside as payment for members of the SAR executive council and $42.2 million for the provisional legislature. The amount, based on amounts paid to the present Exco and Legco, will be subject to change according to an ongoing review by an independent commission chaired by Airport Authority boss Wong Po-yan. The nine members of Mr Tung's future executive council will each receive a monthly allowance of $66,270 between February and June. Each of the provisional legislators will get a general payment of $57,300 a month from March, plus monthly allowances of $79,530 for an office and staff and $13,250 for entertainment and travelling.