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Some of Australia's most prominent business leaders have today (Monday) been told by the Chief Executive, Mr Tung Chee Hwa, how Hong Kong is pressing ahead with a massive investment programme despite the current economic turmoil in the Asian financial markets.

Mr Tung also reassured Australian business people that the Hong Kong Dollar would stay linked to the US Dollar.

"I want to emphasise it is not, it is not, an alternative," the Chief Executive told a high-powered business lunch attended by 400 people in Sydney.

"The Hong Kong Dollar will stay where it is, firmly linked to the US Dollar. And we will not change that policy."

Mr Tung also told the lunch guests that Hong Kong 'was investing a lot of money in our future'.

This included spending on roads, railways and highways as well as investments in improving schools, information technology and the environment.

"We are planning ahead to ensure that the business environment will continue to be attractive to both local and overseas investors in the future," he said.

"So all these things continue and in fact the commitment is larger than what we have made before (on the Airport Core Programme)," he told the luncheon organised by the influential New south Wales State Chamber of Commerce.

Mr Tung told guests that Hong Kong was in for a difficult period and there is going to be a number of quarters before we come out of the difficult period.

"But let me assure you one more time that we are very focused on our future and we will rebound and we will rebound strongly," he said.

Earlier today, Mr Tung spoke with a top-level group of Chief Executive Officers during a round-table meeting organised by the Australia Business Council and the Hong Kong Economic and Trade Office, Sydney.

He explained how Hong Kong business had made major investments in China which were generating considerable activity in Hong Kong.

He said Hong Kong was going through an adjustment period but believed Hong Kong people would emerge with a new culture as to how to compete and improve services.

He told the CEOs that Hong Kong was determined to develop the depth and breadth of it's financial markets as well as devote more resources to information technology and education as the bedrocks of future development.

He added that Hong Kong's role as a driving force in the rapidly expanding economies of southern China, in particular the Pearl River Delta, would continue to contribute to the SAR's economy.

The CEOs remarked that the opening of the new airport next month could provide a stimulus to the Hong Kong and Australian tourists markets.

The position of Hong Kong, and the new airport's 24-hour operation, made it an ideal destination for European travellers to stop off on their way to Australia, or for Australians to stop off at during trips to Europe.

The possibility of joint tourist promotions to bring the European market to Australia and Hong Kong was also raised during the meeting.

Earlier, Mr Tung called on New South Wales Premier Bob Carr, who had visited the Chief Executive during a visit to Hong Kong in mid-May.

Mr Tung also took time to visit Hong Kong House - the first one-stop-shop in the world where there is one single location for the Hong Kong Economic and Trade Office, the Hong Kong Trade Development Council and the Hong Kong Tourist Association.

Tonight in Melbourne, Mr Tung was a guest of honour at the welcoming reception for the Australia Summit, which opens tomorrow (Tuesday).

Australia's Deputy Prime Minister, Mr Tim Fischer, said Mr Tung was 'most welcomed to Australia and most welcomed to our summit' which would focus on regional renewal of the Asia-Pacific economies.

Following the welcome reception, Mr and Mrs Tung were guests of honour at a State Banquet at the Victorian Government House hosted by the Victorian Governor, Sir James Gobbo, and attended by political, business and Chinese community leaders.

Tomorrow, Mr Tung will deliver the keynote address at the summit - which has brought together a who's who of Australian politics, business and the academia.

The Chief Executive is also due to meet Australia Prime Minister John Howard, Deputy Prime Minister Tim Fischer, Finance Minister John Fahey and Victorian State Premier Jeff Kennett.

Photo: The Chief Executive, Mr Tung Chee Hwa, calling on the Premier of New South Wales of Australia, Mr Bob Carr, in Sydney.

End/Monday, June 15, 1998

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