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The following is the full text of a speech by the Chief Executive, Mr Tung Chee Hwa, at the Foreign Correspondents' Club this (Tuesday) evening:
I am really very pleased, ladies and gentlemen, to see the enthusiastic public participation and support in the first Legislative Council election of the HKSAR. With the joint efforts of all sectors, we have made history with a record number of registered voters, voter turnout and voter turnout rate. This is something we in Hong Kong should be very proud of.
The election was held in accordance with the relevant provisions in the Basic Law. It is an important and very successful step towards further democratic development in Hong Kong.
Many have commented that the high turnout is as a result of people's dissatisfaction with the state of economy in Hong Kong. Others have stated that there is a desire for faster pace of democracy. Some have even suggested that people voted because of the commemorative cards they get after voting. I think, to a certain degree, the above may partly be true.
But in my view, the active participation by Hong Kong people reflected their desire to fulfil one's responsibility as a citizen and the very strong public support they have for the Basic Law, and the spirit of "Hong Kong people governing Hong Kong" with a high degree of autonomy.
The election has laid a solid foundation for political development of the SAR. The Government will move forward to a more democratic form of government in accordance with the provisions in the Basic Law.
The entire electoral process has been conducted in an open, fair manner. Credit should go to the independent Electoral Affairs Commission, as well as all the staff of the Government who were involved in this particular process.
I congratulate all the members of the Legislative Council -- the members who have been elected as the first Legislative Council members. The Government will work with all of them closely and look forward to building up a good relationship because it is important that we do so.
At this time, our primary concern must be in the area of economy. Years of high property prices, high inflation and negative interest rates had created a bubble economy which needed to be corrected if we are to remain competitive. The Asian financial turmoil accelerated the pace of correction. Indeed, we are now in the depth of a major economic adjustment, the result of which may be prolonged and painful to everyone. The growth of economy will fall substantially and indeed may even be negative.
As a result of this adjustment, property prices have fallen very substantially in the past months. Let me take this opportunity to assure you that the Government does not wish to see a collapse of the property prices and that we will be flexible in the supply of land in the months and years ahead. At the same, let me point out to you too that our economy is facing a paradigm shift which we must respond to in order to ensure our long term economic vitality.
In a free market economy and an economy which adjusts very quickly, upward or downward, what Government can do is not a whole lot. And I am being honest. At the end of the day, it is still our private sector which will drive our economy forward. However to the extent that the Government can do its part, we shall certainly do so. This is best manifested by the Budget which the Financial Secretary presented in February. In the Budget, tax reduction equals to 1% of our GDP and investment and expenditure increases equal to 3% of our GDP were made. These measures in time will provide stimulus to our economy. The Government will continue to look for, and provide effective short term or long term measures wherever it is possible. We are fortunate in that we have very solid fiscal reserve, very strong foreign exchange reserve, we are fortunate that our rule of law is firmly indented. We are fortunate that China's economy is still going well.
I am sure that with the efforts of the entire community, we will be able to go through this difficult period and resume the path of our economic growth in the not too distant future. I thank you very much for giving me this opportunity.
End/Tuesday, May 26, 1998
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