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The Chief Executive, Mr Tung Chee Hwa, met today (Friday) a delegation from the British House of Commons Foreign Affairs Committee (FAC) led by Mr Donald Anderson.

Mr Tung said he welcomed the opportunity to meet the FAC delegation and briefed them on the latest economic developments in Hong Kong.

He told the visitors that since last October, Hong Kong had met with economic challenges brought about by the Asian financial turmoil and was fortunate to be able to press ahead with our development projects as planned.

"We have introduced immediate measures in the Budget as a means to stimulate the local economy and assist the people in difficult times.

"These include tax reliefs and increase in government expenditure which together amount to some four per cent of our gross domestic product," he said, adding that he expected the economy to bounce back in 1999.

On the development of democracy in the SAR, Mr Tung noted that the democratic evolutionary process was enshrined in the Basic Law, which set out a 10-year timetable for respective elections of the Chief Executive and the Legislature.

In response to reference made by the delegation to an alleged quote from previous visitors on his views on the length of the evolutionary process to universal suffrage, Mr Tung clarified that he did not, and indeed could not, specify any time frame at this early stage. He told the delegation that there were diverse views locally on the path that Hong Kong should take in moving towards universal suffrage.

"The development of democracy must comply with the timetable set out in the Basic Law," he said. "The Basic Law provides that further democratic evolution after 2007 will depend on the wishes of Hong Kong people.

"Such evolution must be in the best interests of Hong Kong people and must preserve the factors contributing to our continued success," he said.

"It is still too early to say when universal suffrage should be implemented in Hong Kong. We have to assess carefully implications of the elections to the relationship between the Executive and the Legislature," he added.

Mr Tung reiterated that while universal suffrage should remain our ultimate objective, we should not lose sight of other important elements of democracy.

"Democracy includes also an accountable government, the rule of law, the right to form political parties, and the freedom of speech. We are very conscious of the need to uphold all these and we are fully committed to do so," he said.

End/Friday, April 3, 1998

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